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) |
• | combined reports better reflect how management and investors view the business as a single operating unit; |
• | combined reports enhance investors' understanding of the Company and the Operating Partnership by enabling them to view the business as a whole and in the same manner as management; |
• | combined reports are more efficient for the Company and the Operating Partnership and result in savings in time, effort and expense; and |
• | combined reports are more efficient for investors by reducing duplicative disclosure and providing a single document for their review. |
• | Consolidated Financial Statements; |
• | the following Notes to Consolidated Financial Statements: |
• | Note 4 - Investments in and Advances to Affiliates; |
• | Note 8 - Noncontrolling Interests; and |
• | Note 13 - Earnings Per Share and Per Unit; |
• | Item 4 - Controls and Procedures; and |
• | Item 6 - Certifications of CEO and CFO Pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act. |
Page | |
PART I - FINANCIAL INFORMATION | |
ITEM 1. FINANCIAL STATEMENTS (unaudited) | |
ITEM 4. CONTROLS AND PROCEDURES | |
PART II - OTHER INFORMATION | |
ITEM 6. EXHIBITS |
June 30, 2013 | December 31, 2012 | ||||||
Assets: | |||||||
Real estate assets, at cost: | |||||||
Land | $ | 389,431 | $ | 365,762 | |||
Buildings and tenant improvements | 3,482,057 | 3,253,805 | |||||
Development in process | 37,559 | 21,198 | |||||
Land held for development | 120,580 | 115,416 | |||||
4,029,627 | 3,756,181 | ||||||
Less-accumulated depreciation | (978,777 | ) | (929,598 | ) | |||
Net real estate assets | 3,050,850 | 2,826,583 | |||||
Real estate and other assets, net, held for sale | — | 47,508 | |||||
Cash and cash equivalents | 10,122 | 13,783 | |||||
Restricted cash | 15,987 | 19,702 | |||||
Accounts receivable, net of allowance of $1,465 and $2,848, respectively | 25,266 | 23,073 | |||||
Mortgages and notes receivable, net of allowance of $376 and $182, respectively | 25,583 | 25,472 | |||||
Accrued straight-line rents receivable, net of allowance of $853 and $857, respectively | 122,742 | 115,030 | |||||
Investments in and advances to unconsolidated affiliates | 65,272 | 66,800 | |||||
Deferred financing and leasing costs, net of accumulated amortization of $85,548 and $76,840, respectively | 181,802 | 168,019 | |||||
Prepaid expenses and other assets, net of accumulated amortization of $12,561 and $12,318, respectively | 41,959 | 44,458 | |||||
Total Assets | $ | 3,539,583 | $ | 3,350,428 | |||
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity: | |||||||
Mortgages and notes payable | $ | 1,931,655 | $ | 1,859,162 | |||
Accounts payable, accrued expenses and other liabilities | 185,087 | 172,146 | |||||
Financing obligations | 28,392 | 29,358 | |||||
Total Liabilities | 2,145,134 | 2,060,666 | |||||
Commitments and contingencies | |||||||
Noncontrolling interests in the Operating Partnership | 130,351 | 124,869 | |||||
Equity: | |||||||
Preferred Stock, $.01 par value, 50,000,000 authorized shares; | |||||||
8.625% Series A Cumulative Redeemable Preferred Shares (liquidation preference $1,000 per share), 29,077 shares issued and outstanding | 29,077 | 29,077 | |||||
Common Stock, $.01 par value, 200,000,000 authorized shares; | |||||||
83,968,412 and 80,311,437 shares issued and outstanding, respectively | 840 | 803 | |||||
Additional paid-in capital | 2,160,698 | 2,040,306 | |||||
Distributions in excess of net income available for common stockholders | (927,110 | ) | (897,418 | ) | |||
Accumulated other comprehensive loss | (4,142 | ) | (12,628 | ) | |||
Total Stockholders’ Equity | 1,259,363 | 1,160,140 | |||||
Noncontrolling interests in consolidated affiliates | 4,735 | 4,753 | |||||
Total Equity | 1,264,098 | 1,164,893 | |||||
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity | $ | 3,539,583 | $ | 3,350,428 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Rental and other revenues | $ | 138,515 | $ | 126,728 | $ | 274,631 | $ | 250,762 | |||||||
Operating expenses: | |||||||||||||||
Rental property and other expenses | 49,633 | 45,884 | 98,372 | 90,066 | |||||||||||
Depreciation and amortization | 42,394 | 38,991 | 84,208 | 75,687 | |||||||||||
Impairments of real estate assets | 1,066 | — | 1,066 | — | |||||||||||
General and administrative | 8,397 | 8,900 | 18,979 | 18,573 | |||||||||||
Total operating expenses | 101,490 | 93,775 | 202,625 | 184,326 | |||||||||||
Interest expense: | |||||||||||||||
Contractual | 22,398 | 23,548 | 45,196 | 47,399 | |||||||||||
Amortization of deferred financing costs | 948 | 900 | 1,897 | 1,802 | |||||||||||
Financing obligations | (60 | ) | (76 | ) | 61 | (152 | ) | ||||||||
23,286 | 24,372 | 47,154 | 49,049 | ||||||||||||
Other income: | |||||||||||||||
Interest and other income | 1,617 | 1,737 | 3,400 | 3,967 | |||||||||||
Losses on debt extinguishment | — | (973 | ) | (164 | ) | (973 | ) | ||||||||
1,617 | 764 | 3,236 | 2,994 | ||||||||||||
Income from continuing operations before disposition of property and condominiums and equity in earnings of unconsolidated affiliates | 15,356 | 9,345 | 28,088 | 20,381 | |||||||||||
Losses on disposition of property | (37 | ) | — | (37 | ) | — | |||||||||
Gains on for-sale residential condominiums | — | 110 | — | 175 | |||||||||||
Equity in earnings of unconsolidated affiliates | 913 | 1,508 | 1,349 | 1,346 | |||||||||||
Income from continuing operations | 16,232 | 10,963 | 29,400 | 21,902 | |||||||||||
Discontinued operations: | |||||||||||||||
Income from discontinued operations | 184 | 2,150 | 245 | 4,409 | |||||||||||
Net gains on disposition of discontinued operations | 13,163 | 1,385 | 13,694 | 6,519 | |||||||||||
13,347 | 3,535 | 13,939 | 10,928 | ||||||||||||
Net income | 29,579 | 14,498 | 43,339 | 32,830 | |||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (1,243 | ) | (686 | ) | (1,824 | ) | (1,513 | ) | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (187 | ) | (223 | ) | (390 | ) | (407 | ) | |||||||
Dividends on Preferred Stock | (627 | ) | (627 | ) | (1,254 | ) | (1,254 | ) | |||||||
Net income available for common stockholders | $ | 27,522 | $ | 12,962 | $ | 39,871 | $ | 29,656 | |||||||
Earnings per Common Share – basic: | |||||||||||||||
Income from continuing operations available for common stockholders | $ | 0.18 | $ | 0.13 | $ | 0.33 | $ | 0.26 | |||||||
Income from discontinued operations available for common stockholders | 0.15 | 0.04 | 0.16 | 0.14 | |||||||||||
Net income available for common stockholders | $ | 0.33 | $ | 0.17 | $ | 0.49 | $ | 0.40 | |||||||
Weighted average Common Shares outstanding – basic | 82,811 | 74,662 | 81,925 | 73,749 | |||||||||||
Earnings per Common Share – diluted: | |||||||||||||||
Income from continuing operations available for common stockholders | $ | 0.18 | $ | 0.13 | $ | 0.33 | $ | 0.26 | |||||||
Income from discontinued operations available for common stockholders | 0.15 | 0.04 | 0.16 | 0.14 | |||||||||||
Net income available for common stockholders | $ | 0.33 | $ | 0.17 | $ | 0.49 | $ | 0.40 | |||||||
Weighted average Common Shares outstanding – diluted | 86,631 | 78,521 | 85,752 | 77,601 | |||||||||||
Dividends declared per Common Share | $ | 0.425 | $ | 0.425 | $ | 0.850 | $ | 0.850 | |||||||
Net income available for common stockholders: | |||||||||||||||
Income from continuing operations available for common stockholders | $ | 14,746 | $ | 9,596 | $ | 26,529 | $ | 19,259 | |||||||
Income from discontinued operations available for common stockholders | 12,776 | 3,366 | 13,342 | 10,397 | |||||||||||
Net income available for common stockholders | $ | 27,522 | $ | 12,962 | $ | 39,871 | $ | 29,656 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Comprehensive income: | |||||||||||||||
Net income | $ | 29,579 | $ | 14,498 | $ | 43,339 | $ | 32,830 | |||||||
Other comprehensive income: | |||||||||||||||
Unrealized gains/(losses) on tax increment financing bond | (91 | ) | 296 | 299 | 583 | ||||||||||
Unrealized gains/(losses) on cash flow hedges | 6,319 | (7,481 | ) | 6,599 | (7,087 | ) | |||||||||
Amortization of cash flow hedges | 800 | 782 | 1,588 | 1,459 | |||||||||||
Total other comprehensive income/(loss) | 7,028 | (6,403 | ) | 8,486 | (5,045 | ) | |||||||||
Total comprehensive income | 36,607 | 8,095 | 51,825 | 27,785 | |||||||||||
Less-comprehensive (income) attributable to noncontrolling interests | (1,430 | ) | (909 | ) | (2,214 | ) | (1,920 | ) | |||||||
Comprehensive income attributable to common stockholders | $ | 35,177 | $ | 7,186 | $ | 49,611 | $ | 25,865 |
Number of Common Shares | Common Stock | Series A Cumulative Redeemable Preferred Shares | Additional Paid-In Capital | Accumulated Other Compre-hensive Loss | Non-controlling Interests in Consolidated Affiliates | Distributions in Excess of Net Income Available for Common Stockholders | Total | |||||||||||||||||||||||
Balance at December 31, 2012 | 80,311,437 | $ | 803 | $ | 29,077 | $ | 2,040,306 | $ | (12,628 | ) | $ | 4,753 | $ | (897,418 | ) | $ | 1,164,893 | |||||||||||||
Issuances of Common Stock, net of tax withholdings | 3,434,687 | 34 | — | 122,456 | — | — | — | 122,490 | ||||||||||||||||||||||
Conversions of Common Units to Common Stock | 72,471 | — | — | 2,851 | — | — | — | 2,851 | ||||||||||||||||||||||
Dividends on Common Stock | — | — | — | — | (69,563 | ) | (69,563 | ) | ||||||||||||||||||||||
Dividends on Preferred Stock | — | — | — | — | (1,254 | ) | (1,254 | ) | ||||||||||||||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | — | — | (9,649 | ) | — | — | — | (9,649 | ) | |||||||||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | — | (408 | ) | — | (408 | ) | |||||||||||||||||||||
Issuances of restricted stock | 151,630 | — | — | — | — | — | — | — | ||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | (1,813 | ) | 3 | — | 4,734 | — | — | — | 4,737 | |||||||||||||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | — | — | — | — | — | (1,824 | ) | (1,824 | ) | |||||||||||||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | — | — | — | — | 390 | (390 | ) | — | ||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 43,339 | 43,339 | |||||||||||||||||||||||
Other comprehensive income | — | — | — | 8,486 | — | — | 8,486 | |||||||||||||||||||||||
Total comprehensive income | 51,825 | |||||||||||||||||||||||||||||
Balance at June 30, 2013 | 83,968,412 | $ | 840 | $ | 29,077 | $ | 2,160,698 | $ | (4,142 | ) | $ | 4,735 | $ | (927,110 | ) | $ | 1,264,098 |
Number of Common Shares | Common Stock | Series A Cumulative Redeemable Preferred Shares | Additional Paid-In Capital | Accumulated Other Compre-hensive Loss | Non-controlling Interests in Consolidated Affiliates | Distributions in Excess of Net Income Available for Common Stockholders | Total | |||||||||||||||||||||||
Balance at December 31, 2011 | 72,647,697 | $ | 726 | $ | 29,077 | $ | 1,803,997 | $ | (5,734 | ) | $ | 4,646 | $ | (845,853 | ) | $ | 986,859 | |||||||||||||
Issuances of Common Stock, net of tax withholdings | 2,794,340 | 28 | — | 91,808 | — | — | — | 91,836 | ||||||||||||||||||||||
Conversions of Common Units to Common Stock | 18,366 | — | — | 631 | — | — | — | 631 | ||||||||||||||||||||||
Dividends on Common Stock | — | — | — | — | — | (62,787 | ) | (62,787 | ) | |||||||||||||||||||||
Dividends on Preferred Stock | — | — | — | — | — | (1,254 | ) | (1,254 | ) | |||||||||||||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | — | — | (16,501 | ) | — | — | — | (16,501 | ) | |||||||||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | — | (460 | ) | — | (460 | ) | |||||||||||||||||||||
Issuances of restricted stock | 158,885 | — | — | — | — | — | — | — | ||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 2 | — | 4,457 | — | — | — | 4,459 | |||||||||||||||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | — | — | — | — | — | (1,513 | ) | (1,513 | ) | |||||||||||||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | — | — | — | — | 407 | (407 | ) | — | ||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 32,830 | 32,830 | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | (5,045 | ) | — | — | (5,045 | ) | |||||||||||||||||||||
Total comprehensive income | 27,785 | |||||||||||||||||||||||||||||
Balance at June 30, 2012 | 75,619,288 | $ | 756 | $ | 29,077 | $ | 1,884,392 | $ | (10,779 | ) | $ | 4,593 | $ | (878,984 | ) | $ | 1,029,055 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Operating activities: | |||||||
Net income | $ | 43,339 | $ | 32,830 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 84,767 | 79,113 | |||||
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (198 | ) | 180 | ||||
Share-based compensation expense | 4,737 | 4,459 | |||||
Allowance for losses on accounts and accrued straight-line rents receivable | 380 | 538 | |||||
Amortization of deferred financing costs | 1,897 | 1,802 | |||||
Amortization of cash flow hedges | 1,588 | 1,459 | |||||
Impairments of real estate assets | 1,481 | — | |||||
Losses on debt extinguishment | 164 | 973 | |||||
Net gains on disposition of property | (13,657 | ) | (6,519 | ) | |||
Gains on for-sale residential condominiums | — | (175 | ) | ||||
Equity in earnings of unconsolidated affiliates | (1,349 | ) | (1,346 | ) | |||
Changes in financing obligations | (391 | ) | (584 | ) | |||
Distributions of earnings from unconsolidated affiliates | 2,827 | 2,225 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 2,295 | 7,298 | |||||
Prepaid expenses and other assets | (2,284 | ) | (3,158 | ) | |||
Accrued straight-line rents receivable | (8,009 | ) | (9,415 | ) | |||
Accounts payable, accrued expenses and other liabilities | (661 | ) | (16,352 | ) | |||
Net cash provided by operating activities | 116,926 | 93,328 | |||||
Investing activities: | |||||||
Investments in acquired real estate and related intangible assets, net of cash acquired | (228,461 | ) | — | ||||
Investments in development in process | (11,499 | ) | (1,531 | ) | |||
Investments in tenant improvements and deferred leasing costs | (42,343 | ) | (43,851 | ) | |||
Investments in building improvements | (26,466 | ) | (19,758 | ) | |||
Net proceeds from disposition of real estate assets | 60,381 | 19,898 | |||||
Net proceeds from disposition of for-sale residential condominiums | — | 2,492 | |||||
Distributions of capital from unconsolidated affiliates | 435 | 901 | |||||
Investments in and repayments of mortgages and notes receivable | (156 | ) | 1,544 | ||||
Investments in and advances/repayments to/from unconsolidated affiliates | (429 | ) | (2,750 | ) | |||
Changes in restricted cash and other investing activities | 7,853 | 4,031 | |||||
Net cash used in investing activities | (240,685 | ) | (39,024 | ) | |||
Financing activities: | |||||||
Dividends on Common Stock | (69,563 | ) | (62,787 | ) | |||
Dividends on Preferred Stock | (1,254 | ) | (1,254 | ) | |||
Distributions to noncontrolling interests in the Operating Partnership | (3,140 | ) | (3,158 | ) | |||
Distributions to noncontrolling interests in consolidated affiliates | (408 | ) | (460 | ) | |||
Proceeds from the issuance of Common Stock | 126,738 | 95,289 | |||||
Costs paid for the issuance of Common Stock | (1,711 | ) | (1,316 | ) | |||
Repurchase of shares related to tax withholdings | (2,537 | ) | (2,137 | ) | |||
Borrowings on revolving credit facility | 346,300 | 106,300 | |||||
Repayments of revolving credit facility | (233,900 | ) | (392,800 | ) | |||
Borrowings on mortgages and notes payable | — | 225,000 | |||||
Repayments of mortgages and notes payable | (39,610 | ) | (19,359 | ) | |||
Payments on financing obligations | (575 | ) | (38 | ) | |||
Additions to deferred financing costs and other financing activities | (242 | ) | (2,245 | ) | |||
Net cash provided by/(used in) financing activities | 120,098 | (58,965 | ) | ||||
Net decrease in cash and cash equivalents | $ | (3,661 | ) | $ | (4,661 | ) |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Net decrease in cash and cash equivalents | $ | (3,661 | ) | $ | (4,661 | ) | |
Cash and cash equivalents at beginning of the period | 13,783 | 11,188 | |||||
Cash and cash equivalents at end of the period | $ | 10,122 | $ | 6,527 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Cash paid for interest, net of amounts capitalized | $ | 40,480 | $ | 48,063 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Unrealized gains/(losses) on cash flow hedges | $ | 6,599 | $ | (7,087 | ) | ||
Conversions of Common Units to Common Stock | 2,851 | 631 | |||||
Changes in accrued capital expenditures | 12,618 | (2,448 | ) | ||||
Write-off of fully depreciated real estate assets | 17,732 | 28,629 | |||||
Write-off of fully amortized deferred financing and leasing costs | 11,363 | 8,765 | |||||
Unrealized gains on marketable securities of non-qualified deferred compensation plan | 312 | 216 | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 9,649 | 16,501 | |||||
Unrealized gains on tax increment financing bond | 299 | 583 | |||||
Reduction of advances to unconsolidated affiliates related to acquisition activities | — | 26,000 |
June 30, 2013 | December 31, 2012 | ||||||
Assets: | |||||||
Real estate assets, at cost: | |||||||
Land | $ | 389,431 | $ | 365,762 | |||
Buildings and tenant improvements | 3,482,057 | 3,253,805 | |||||
Development in process | 37,559 | 21,198 | |||||
Land held for development | 120,580 | 115,416 | |||||
4,029,627 | 3,756,181 | ||||||
Less-accumulated depreciation | (978,777 | ) | (929,598 | ) | |||
Net real estate assets | 3,050,850 | 2,826,583 | |||||
Real estate and other assets, net, held for sale | — | 47,508 | |||||
Cash and cash equivalents | 10,205 | 13,867 | |||||
Restricted cash | 15,987 | 19,702 | |||||
Accounts receivable, net of allowance of $1,465 and $2,848, respectively | 25,266 | 23,073 | |||||
Mortgages and notes receivable, net of allowance of $376 and $182, respectively | 25,583 | 25,472 | |||||
Accrued straight-line rents receivable, net of allowance of $853 and $857, respectively | 122,742 | 115,030 | |||||
Investments in and advances to unconsolidated affiliates | 64,249 | 65,813 | |||||
Deferred financing and leasing costs, net of accumulated amortization of $85,548 and $76,840, respectively | 181,802 | 168,019 | |||||
Prepaid expenses and other assets, net of accumulated amortization of $12,561 and $12,318, respectively | 41,864 | 44,458 | |||||
Total Assets | $ | 3,538,548 | $ | 3,349,525 | |||
Liabilities, Redeemable Operating Partnership Units and Equity: | |||||||
Mortgages and notes payable | $ | 1,931,655 | $ | 1,859,162 | |||
Accounts payable, accrued expenses and other liabilities | 185,041 | 172,026 | |||||
Financing obligations | 28,392 | 29,358 | |||||
Total Liabilities | 2,145,088 | 2,060,546 | |||||
Commitments and contingencies | |||||||
Redeemable Operating Partnership Units: | |||||||
Common Units, 3,660,545 and 3,733,016 outstanding, respectively | 130,351 | 124,869 | |||||
Series A Preferred Units (liquidation preference $1,000 per unit), 29,077 units issued and outstanding | 29,077 | 29,077 | |||||
Total Redeemable Operating Partnership Units | 159,428 | 153,946 | |||||
Equity: | |||||||
Common Units: | |||||||
General partner Common Units, 872,201 and 836,356 outstanding, respectively | 12,332 | 11,427 | |||||
Limited partner Common Units, 82,687,402 and 79,066,272 outstanding, respectively | 1,221,107 | 1,131,481 | |||||
Accumulated other comprehensive loss | (4,142 | ) | (12,628 | ) | |||
Noncontrolling interests in consolidated affiliates | 4,735 | 4,753 | |||||
Total Equity | 1,234,032 | 1,135,033 | |||||
Total Liabilities, Redeemable Operating Partnership Units and Equity | $ | 3,538,548 | $ | 3,349,525 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Rental and other revenues | $ | 138,515 | $ | 126,728 | $ | 274,631 | $ | 250,762 | |||||||
Operating expenses: | |||||||||||||||
Rental property and other expenses | 49,611 | 45,825 | 98,376 | 89,945 | |||||||||||
Depreciation and amortization | 42,394 | 38,991 | 84,208 | 75,687 | |||||||||||
Impairments of real estate assets | 1,066 | — | 1,066 | — | |||||||||||
General and administrative | 8,419 | 8,959 | 18,975 | 18,694 | |||||||||||
Total operating expenses | 101,490 | 93,775 | 202,625 | 184,326 | |||||||||||
Interest expense: | |||||||||||||||
Contractual | 22,398 | 23,548 | 45,196 | 47,399 | |||||||||||
Amortization of deferred financing costs | 948 | 900 | 1,897 | 1,802 | |||||||||||
Financing obligations | (60 | ) | (76 | ) | 61 | (152 | ) | ||||||||
23,286 | 24,372 | 47,154 | 49,049 | ||||||||||||
Other income: | |||||||||||||||
Interest and other income | 1,617 | 1,737 | 3,400 | 3,967 | |||||||||||
Losses on debt extinguishment | — | (973 | ) | (164 | ) | (973 | ) | ||||||||
1,617 | 764 | 3,236 | 2,994 | ||||||||||||
Income from continuing operations before disposition of property and condominiums and equity in earnings of unconsolidated affiliates | 15,356 | 9,345 | 28,088 | 20,381 | |||||||||||
Losses on disposition of property | (37 | ) | — | (37 | ) | — | |||||||||
Gains on for-sale residential condominiums | — | 110 | — | 175 | |||||||||||
Equity in earnings of unconsolidated affiliates | 916 | 1,511 | 1,299 | 1,351 | |||||||||||
Income from continuing operations | 16,235 | 10,966 | 29,350 | 21,907 | |||||||||||
Discontinued operations: | |||||||||||||||
Income from discontinued operations | 184 | 2,150 | 245 | 4,409 | |||||||||||
Net gains on disposition of discontinued operations | 13,163 | 1,385 | 13,694 | 6,519 | |||||||||||
13,347 | 3,535 | 13,939 | 10,928 | ||||||||||||
Net income | 29,582 | 14,501 | 43,289 | 32,835 | |||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (187 | ) | (223 | ) | (390 | ) | (407 | ) | |||||||
Distributions on Preferred Units | (627 | ) | (627 | ) | (1,254 | ) | (1,254 | ) | |||||||
Net income available for common unitholders | $ | 28,768 | $ | 13,651 | $ | 41,645 | $ | 31,174 | |||||||
Earnings per Common Unit – basic: | |||||||||||||||
Income from continuing operations available for common unitholders | $ | 0.18 | $ | 0.13 | $ | 0.33 | $ | 0.26 | |||||||
Income from discontinued operations available for common unitholders | 0.15 | 0.05 | 0.16 | 0.14 | |||||||||||
Net income available for common unitholders | $ | 0.33 | $ | 0.18 | $ | 0.49 | $ | 0.40 | |||||||
Weighted average Common Units outstanding – basic | 86,090 | 77,971 | 85,223 | 77,063 | |||||||||||
Earnings per Common Unit – diluted: | |||||||||||||||
Income from continuing operations available for common unitholders | $ | 0.18 | $ | 0.13 | $ | 0.33 | $ | 0.26 | |||||||
Income from discontinued operations available for common unitholders | 0.15 | 0.04 | 0.16 | 0.14 | |||||||||||
Net income available for common unitholders | $ | 0.33 | $ | 0.17 | $ | 0.49 | $ | 0.40 | |||||||
Weighted average Common Units outstanding – diluted | 86,222 | 78,112 | 85,343 | 77,192 | |||||||||||
Distributions declared per Common Unit | $ | 0.425 | $ | 0.425 | $ | 0.850 | $ | 0.850 | |||||||
Net income available for common unitholders: | |||||||||||||||
Income from continuing operations available for common unitholders | $ | 15,421 | $ | 10,116 | $ | 27,706 | $ | 20,246 | |||||||
Income from discontinued operations available for common unitholders | 13,347 | 3,535 | 13,939 | 10,928 | |||||||||||
Net income available for common unitholders | $ | 28,768 | $ | 13,651 | $ | 41,645 | $ | 31,174 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Comprehensive income: | |||||||||||||||
Net income | $ | 29,582 | $ | 14,501 | $ | 43,289 | $ | 32,835 | |||||||
Other comprehensive income: | |||||||||||||||
Unrealized gains/(losses) on tax increment financing bond | (91 | ) | 296 | 299 | 583 | ||||||||||
Unrealized gains/(losses) on cash flow hedges | 6,319 | (7,481 | ) | 6,599 | (7,087 | ) | |||||||||
Amortization of cash flow hedges | 800 | 782 | 1,588 | 1,459 | |||||||||||
Total other comprehensive income/(loss) | 7,028 | (6,403 | ) | 8,486 | (5,045 | ) | |||||||||
Total comprehensive income | 36,610 | 8,098 | 51,775 | 27,790 | |||||||||||
Less-comprehensive (income) attributable to noncontrolling interests | (187 | ) | (223 | ) | (390 | ) | (407 | ) | |||||||
Comprehensive income attributable to common unitholders | $ | 36,423 | $ | 7,875 | $ | 51,385 | $ | 27,383 |
Common Units | Accumulated Other Comprehensive Loss | Noncontrolling Interests in Consolidated Affiliates | Total Partners’ Capital | ||||||||||||||||
General Partners’ Capital | Limited Partners’ Capital | ||||||||||||||||||
Balance at December 31, 2012 | $ | 11,427 | $ | 1,131,481 | $ | (12,628 | ) | $ | 4,753 | $ | 1,135,033 | ||||||||
Issuances of Common Units, net of tax withholdings | 1,225 | 121,265 | — | — | 122,490 | ||||||||||||||
Distributions paid on Common Units | (724 | ) | (71,631 | ) | — | — | (72,355 | ) | |||||||||||
Distributions paid on Preferred Units | (13 | ) | (1,241 | ) | — | — | (1,254 | ) | |||||||||||
Share-based compensation expense, net of forfeitures | 47 | 4,690 | — | — | 4,737 | ||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | (408 | ) | (408 | ) | ||||||||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (59 | ) | (5,927 | ) | — | — | (5,986 | ) | |||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (4 | ) | (386 | ) | — | 390 | — | ||||||||||||
Comprehensive income: | |||||||||||||||||||
Net income | 433 | 42,856 | — | — | 43,289 | ||||||||||||||
Other comprehensive income | — | — | 8,486 | — | 8,486 | ||||||||||||||
Total comprehensive income | 51,775 | ||||||||||||||||||
Balance at June 30, 2013 | $ | 12,332 | $ | 1,221,107 | $ | (4,142 | ) | $ | 4,735 | $ | 1,234,032 |
Common Units | Accumulated Other Comprehensive Loss | Noncontrolling Interests in Consolidated Affiliates | Total Partners’ Capital | ||||||||||||||||
General Partners’ Capital | Limited Partners’ Capital | ||||||||||||||||||
Balance at December 31, 2011 | $ | 9,575 | $ | 948,187 | $ | (5,734 | ) | $ | 4,646 | $ | 956,674 | ||||||||
Issuances of Common Units, net of tax withholdings | 918 | 90,918 | — | — | 91,836 | ||||||||||||||
Distributions paid on Common Units | (656 | ) | (64,941 | ) | — | — | (65,597 | ) | |||||||||||
Distributions paid on Preferred Units | (13 | ) | (1,241 | ) | — | — | (1,254 | ) | |||||||||||
Share-based compensation expense, net of forfeitures | 45 | 4,414 | — | — | 4,459 | ||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | (460 | ) | (460 | ) | ||||||||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (144 | ) | (14,294 | ) | — | — | (14,438 | ) | |||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (4 | ) | (403 | ) | 407 | — | |||||||||||||
Comprehensive income: | |||||||||||||||||||
Net income | 328 | 32,507 | — | — | 32,835 | ||||||||||||||
Other comprehensive loss | — | — | (5,045 | ) | — | (5,045 | ) | ||||||||||||
Total comprehensive income | 27,790 | ||||||||||||||||||
Balance at June 30, 2012 | $ | 10,049 | $ | 995,147 | $ | (10,779 | ) | $ | 4,593 | $ | 999,010 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Operating activities: | |||||||
Net income | $ | 43,289 | $ | 32,835 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 84,767 | 79,113 | |||||
Amortization of lease incentives and acquisition-related intangible assets and liabilities | (198 | ) | 180 | ||||
Share-based compensation expense | 4,737 | 4,459 | |||||
Allowance for losses on accounts and accrued straight-line rents receivable | 380 | 538 | |||||
Amortization of deferred financing costs | 1,897 | 1,802 | |||||
Amortization of cash flow hedges | 1,588 | 1,459 | |||||
Impairments of real estate assets | 1,481 | — | |||||
Losses on debt extinguishment | 164 | 973 | |||||
Net gains on disposition of property | (13,657 | ) | (6,519 | ) | |||
Gains on for-sale residential condominiums | — | (175 | ) | ||||
Equity in earnings of unconsolidated affiliates | (1,299 | ) | (1,351 | ) | |||
Changes in financing obligations | (391 | ) | (584 | ) | |||
Distributions of earnings from unconsolidated affiliates | 2,814 | 2,211 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 2,295 | 7,298 | |||||
Prepaid expenses and other assets | (2,189 | ) | (3,077 | ) | |||
Accrued straight-line rents receivable | (8,009 | ) | (9,415 | ) | |||
Accounts payable, accrued expenses and other liabilities | (587 | ) | (16,413 | ) | |||
Net cash provided by operating activities | 117,082 | 93,334 | |||||
Investing activities: | |||||||
Investments in acquired real estate and related intangible assets, net of cash acquired | (228,461 | ) | — | ||||
Investments in development in process | (11,499 | ) | (1,531 | ) | |||
Investments in tenant improvements and deferred leasing costs | (42,343 | ) | (43,851 | ) | |||
Investments in building improvements | (26,466 | ) | (19,758 | ) | |||
Net proceeds from disposition of real estate assets | 60,381 | 19,898 | |||||
Net proceeds from disposition of for-sale residential condominiums | — | 2,492 | |||||
Distributions of capital from unconsolidated affiliates | 435 | 901 | |||||
Investments in and repayments of mortgages and notes receivable | (156 | ) | 1,544 | ||||
Investments in and advances/repayments to/from unconsolidated affiliates | (429 | ) | (2,750 | ) | |||
Changes in restricted cash and other investing activities | 7,853 | 4,031 | |||||
Net cash used in investing activities | (240,685 | ) | (39,024 | ) | |||
Financing activities: | |||||||
Distributions on Common Units | (72,355 | ) | (65,597 | ) | |||
Distributions on Preferred Units | (1,254 | ) | (1,254 | ) | |||
Distributions to noncontrolling interests in consolidated affiliates | (408 | ) | (460 | ) | |||
Proceeds from the issuance of Common Units | 126,738 | 95,289 | |||||
Costs paid for the issuance of Common Units | (1,711 | ) | (1,316 | ) | |||
Repurchase of units related to tax withholdings | (2,537 | ) | (2,137 | ) | |||
Borrowings on revolving credit facility | 346,300 | 106,300 | |||||
Repayments of revolving credit facility | (233,900 | ) | (392,800 | ) | |||
Borrowings on mortgages and notes payable | — | 225,000 | |||||
Repayments of mortgages and notes payable | (39,610 | ) | (19,359 | ) | |||
Payments on financing obligations | (575 | ) | (38 | ) | |||
Additions to deferred financing costs and other financing activities | (747 | ) | (2,458 | ) | |||
Net cash provided by/(used in) financing activities | 119,941 | (58,830 | ) | ||||
Net decrease in cash and cash equivalents | $ | (3,662 | ) | $ | (4,520 | ) |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Net decrease in cash and cash equivalents | $ | (3,662 | ) | $ | (4,520 | ) | |
Cash and cash equivalents at beginning of the period | 13,867 | 11,151 | |||||
Cash and cash equivalents at end of the period | $ | 10,205 | $ | 6,631 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Cash paid for interest, net of amounts capitalized | $ | 40,480 | $ | 48,063 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Unrealized gains/(losses) on cash flow hedges | $ | 6,599 | $ | (7,087 | ) | ||
Changes in accrued capital expenditures | 12,618 | (2,448 | ) | ||||
Write-off of fully depreciated real estate assets | 17,732 | 28,629 | |||||
Write-off of fully amortized deferred financing and leasing costs | 11,363 | 8,765 | |||||
Unrealized gains on marketable securities of non-qualified deferred compensation plan | 312 | 216 | |||||
Adjustment of Redeemable Common Units to fair value | 5,482 | 14,225 | |||||
Unrealized gains on tax increment financing bond | 299 | 583 | |||||
Reduction of advances to unconsolidated affiliates related to acquisition activities | — | 26,000 |
• | two office properties in Tampa, FL encompassing 372,000 square feet for a purchase price of $52.5 million, |
• | two office properties in Greensboro, NC encompassing 195,000 square feet for a purchase price of $30.8 million, and |
• | five acres of development land in Memphis, TN for a purchase price of $4.8 million. |
• | five industrial properties in Atlanta, GA for a sale price of $4.5 million (after $0.1 million in closing credits to buyer for free rent) and recorded a gain on disposition of discontinued operations of less than $0.1 million; |
• | six industrial properties and a land parcel in a single transaction in Atlanta, GA for a sale price of $38.7 million (before $1.8 million in closing credits to buyer for unfunded tenant improvements and after $1.3 million in closing credits to buyer for free rent) and recorded a gain on disposition of discontinued operations of $13.2 million; and |
• | two industrial properties in Atlanta, GA for a sale price of $4.8 million and recorded a loss on disposition of discontinued operations of less than $0.1 million. |
June 30, 2013 | December 31, 2012 | ||||||
Seller financing (first mortgages) | $ | 16,113 | $ | 15,853 | |||
Less allowance | — | — | |||||
16,113 | 15,853 | ||||||
Mortgage receivable | 8,715 | 8,648 | |||||
Less allowance | — | — | |||||
8,715 | 8,648 | ||||||
Promissory notes | 1,131 | 1,153 | |||||
Less allowance | (376 | ) | (182 | ) | |||
755 | 971 | ||||||
Mortgages and notes receivable, net | $ | 25,583 | $ | 25,472 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Beginning notes receivable allowance | $ | 437 | $ | 122 | $ | 182 | $ | 61 | |||||||
Recoveries/write-offs/other | (61 | ) | (4 | ) | 194 | 57 | |||||||||
Total notes receivable allowance | $ | 376 | $ | 118 | $ | 376 | $ | 118 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Income Statements: | |||||||||||||||
Rental and other revenues | $ | 23,935 | $ | 26,049 | $ | 47,451 |