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 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, 2014 | December 31, 2013 | ||||||
Assets: | |||||||
Real estate assets, at cost: | |||||||
Land | $ | 382,575 | $ | 393,602 | |||
Buildings and tenant improvements | 3,724,554 | 3,748,869 | |||||
Development in process | 114,790 | 44,621 | |||||
Land held for development | 104,873 | 110,374 | |||||
4,326,792 | 4,297,466 | ||||||
Less-accumulated depreciation | (1,011,477 | ) | (985,244 | ) | |||
Net real estate assets | 3,315,315 | 3,312,222 | |||||
Real estate and other assets, net, held for sale | 68,159 | — | |||||
Cash and cash equivalents | 18,699 | 10,184 | |||||
Restricted cash | 10,602 | 14,169 | |||||
Accounts receivable, net of allowance of $1,390 and $1,648, respectively | 27,972 | 26,430 | |||||
Mortgages and notes receivable, net of allowance of $275 and $302, respectively | 10,140 | 26,409 | |||||
Accrued straight-line rents receivable, net of allowance of $798 and $1,063, respectively | 132,051 | 126,014 | |||||
Investments in unconsolidated affiliates | 30,387 | 29,901 | |||||
Deferred financing and leasing costs, net of accumulated amortization of $102,430 and $92,220, respectively | 218,022 | 222,211 | |||||
Prepaid expenses and other assets, net of accumulated amortization of $13,466 and $12,905, respectively | 45,453 | 39,561 | |||||
Total Assets | $ | 3,876,800 | $ | 3,807,101 | |||
Liabilities, Noncontrolling Interests in the Operating Partnership and Equity: | |||||||
Mortgages and notes payable | $ | 2,058,972 | $ | 1,956,299 | |||
Accounts payable, accrued expenses and other liabilities | 219,296 | 218,962 | |||||
Financing obligations | 24,672 | 26,664 | |||||
Total Liabilities | 2,302,940 | 2,201,925 | |||||
Commitments and contingencies | |||||||
Noncontrolling interests in the Operating Partnership | 123,205 | 106,480 | |||||
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; | |||||||
90,361,707 and 89,920,915 shares issued and outstanding, respectively | 904 | 899 | |||||
Additional paid-in capital | 2,366,281 | 2,370,368 | |||||
Distributions in excess of net income available for common stockholders | (962,205 | ) | (920,433 | ) | |||
Accumulated other comprehensive loss | (4,719 | ) | (2,611 | ) | |||
Total Stockholders’ Equity | 1,429,338 | 1,477,300 | |||||
Noncontrolling interests in consolidated affiliates | 21,317 | 21,396 | |||||
Total Equity | 1,450,655 | 1,498,696 | |||||
Total Liabilities, Noncontrolling Interests in the Operating Partnership and Equity | $ | 3,876,800 | $ | 3,807,101 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Rental and other revenues | $ | 152,722 | $ | 132,618 | $ | 301,175 | $ | 262,995 | |||||||
Operating expenses: | |||||||||||||||
Rental property and other expenses | 55,275 | 47,317 | 111,665 | 93,911 | |||||||||||
Depreciation and amortization | 50,443 | 40,624 | 98,608 | 80,712 | |||||||||||
Impairments of real estate assets | 588 | — | 588 | — | |||||||||||
General and administrative | 8,733 | 8,397 | 19,447 | 18,979 | |||||||||||
Total operating expenses | 115,039 | 96,338 | 230,308 | 193,602 | |||||||||||
Interest expense: | |||||||||||||||
Contractual | 20,640 | 22,398 | 41,390 | 45,196 | |||||||||||
Amortization of deferred financing costs | 799 | 948 | 1,451 | 1,897 | |||||||||||
Financing obligations | (226 | ) | (60 | ) | (266 | ) | 61 | ||||||||
21,213 | 23,286 | 42,575 | 47,154 | ||||||||||||
Other income: | |||||||||||||||
Interest and other income | 1,410 | 1,617 | 2,809 | 3,400 | |||||||||||
Gains/(losses) on debt extinguishment | 18 | — | 18 | (164 | ) | ||||||||||
1,428 | 1,617 | 2,827 | 3,236 | ||||||||||||
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates | 17,898 | 14,611 | 31,119 | 25,475 | |||||||||||
Gains/(losses) on disposition of property | 5,947 | (37 | ) | 5,947 | (37 | ) | |||||||||
Equity in earnings of unconsolidated affiliates | 667 | 913 | 638 | 1,349 | |||||||||||
Income from continuing operations | 24,512 | 15,487 | 37,704 | 26,787 | |||||||||||
Discontinued operations: | |||||||||||||||
Income from discontinued operations | — | 1,995 | — | 4,339 | |||||||||||
Impairments of real estate assets | — | (1,066 | ) | — | (2,194 | ) | |||||||||
Net gains on disposition of discontinued operations | — | 13,163 | 384 | 14,407 | |||||||||||
— | 14,092 | 384 | 16,552 | ||||||||||||
Net income | 24,512 | 29,579 | 38,088 | 43,339 | |||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | (742 | ) | (1,243 | ) | (1,140 | ) | (1,824 | ) | |||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (438 | ) | (187 | ) | (861 | ) | (390 | ) | |||||||
Dividends on Preferred Stock | (627 | ) | (627 | ) | (1,254 | ) | (1,254 | ) | |||||||
Net income available for common stockholders | $ | 22,705 | $ | 27,522 | $ | 34,833 | $ | 39,871 | |||||||
Earnings per Common Share – basic: | |||||||||||||||
Income from continuing operations available for common stockholders | $ | 0.25 | $ | 0.17 | $ | 0.38 | $ | 0.30 | |||||||
Income from discontinued operations available for common stockholders | — | 0.16 | 0.01 | 0.19 | |||||||||||
Net income available for common stockholders | $ | 0.25 | $ | 0.33 | $ | 0.39 | $ | 0.49 | |||||||
Weighted average Common Shares outstanding – basic | 90,254 | 82,811 | 90,111 | 81,925 | |||||||||||
Earnings per Common Share – diluted: | |||||||||||||||
Income from continuing operations available for common stockholders | $ | 0.25 | $ | 0.17 | $ | 0.38 | $ | 0.30 | |||||||
Income from discontinued operations available for common stockholders | — | 0.16 | 0.01 | 0.19 | |||||||||||
Net income available for common stockholders | $ | 0.25 | $ | 0.33 | $ | 0.39 | $ | 0.49 | |||||||
Weighted average Common Shares outstanding – diluted | 93,312 | 86,631 | 93,172 | 85,752 | |||||||||||
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 | $ | 22,705 | $ | 14,033 | $ | 34,461 | $ | 24,031 | |||||||
Income from discontinued operations available for common stockholders | — | 13,489 | 372 | 15,840 | |||||||||||
Net income available for common stockholders | $ | 22,705 | $ | 27,522 | $ | 34,833 | $ | 39,871 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Comprehensive income: | |||||||||||||||
Net income | $ | 24,512 | $ | 29,579 | $ | 38,088 | $ | 43,339 | |||||||
Other comprehensive income/(loss): | |||||||||||||||
Unrealized gains/(losses) on tax increment financing bond | 105 | (91 | ) | 270 | 299 | ||||||||||
Unrealized gains/(losses) on cash flow hedges | (2,846 | ) | 6,319 | (4,250 | ) | 6,599 | |||||||||
Amortization of cash flow hedges | 944 | 800 | 1,872 | 1,588 | |||||||||||
Total other comprehensive income/(loss) | (1,797 | ) | 7,028 | (2,108 | ) | 8,486 | |||||||||
Total comprehensive income | 22,715 | 36,607 | 35,980 | 51,825 | |||||||||||
Less-comprehensive (income) attributable to noncontrolling interests | (1,180 | ) | (1,430 | ) | (2,001 | ) | (2,214 | ) | |||||||
Comprehensive income attributable to common stockholders | $ | 21,535 | $ | 35,177 | $ | 33,979 | $ | 49,611 |
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, 2013 | 89,920,915 | $ | 899 | $ | 29,077 | $ | 2,370,368 | $ | (2,611 | ) | $ | 21,396 | $ | (920,433 | ) | $ | 1,498,696 | |||||||||||||
Issuances of Common Stock, net of shares redeemed for tax withholdings | 281,992 | 3 | — | 8,709 | — | — | — | 8,712 | ||||||||||||||||||||||
Conversions of Common Units to Common Stock | 4,417 | — | — | 162 | — | — | — | 162 | ||||||||||||||||||||||
Dividends on Common Stock | — | — | — | — | — | (76,605 | ) | (76,605 | ) | |||||||||||||||||||||
Dividends on Preferred Stock | — | — | — | — | — | (1,254 | ) | (1,254 | ) | |||||||||||||||||||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | — | — | (18,337 | ) | — | — | — | (18,337 | ) | |||||||||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | — | (940 | ) | — | (940 | ) | |||||||||||||||||||||
Issuances of restricted stock | 154,383 | — | — | — | — | — | — | — | ||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 2 | — | 5,379 | — | — | — | 5,381 | |||||||||||||||||||||||
Net (income) attributable to noncontrolling interests in the Operating Partnership | — | — | — | — | — | (1,140 | ) | (1,140 | ) | |||||||||||||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | — | — | — | — | 861 | (861 | ) | — | ||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 38,088 | 38,088 | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | (2,108 | ) | — | — | (2,108 | ) | |||||||||||||||||||||
Total comprehensive income | 35,980 | |||||||||||||||||||||||||||||
Balance at June 30, 2014 | 90,361,707 | $ | 904 | $ | 29,077 | $ | 2,366,281 | $ | (4,719 | ) | $ | 21,317 | $ | (962,205 | ) | $ | 1,450,655 |
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 shares redeemed for 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 |
Six Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Operating activities: | |||||||
Net income | $ | 38,088 | $ | 43,339 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 98,608 | 84,767 | |||||
Amortization of lease incentives and acquisition-related intangible assets and liabilities | 234 | (198 | ) | ||||
Share-based compensation expense | 5,381 | 4,737 | |||||
Allowance for losses on accounts and accrued straight-line rents receivable | 1,278 | 380 | |||||
Accrued interest on mortgages and notes receivable | (232 | ) | — | ||||
Amortization of deferred financing costs | 1,451 | 1,897 | |||||
Amortization of cash flow hedges | 1,872 | 1,588 | |||||
Amortization of mortgages and notes payable fair value adjustments | (902 | ) | — | ||||
Impairments of real estate assets | 588 | 2,194 | |||||
(Gains)/losses on debt extinguishment | (18 | ) | 164 | ||||
Net gains on disposition of property | (6,331 | ) | (14,370 | ) | |||
Equity in earnings of unconsolidated affiliates | (638 | ) | (1,349 | ) | |||
Changes in financing obligations | (628 | ) | (391 | ) | |||
Distributions of earnings from unconsolidated affiliates | 1,216 | 2,827 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 1,491 | 2,295 | |||||
Prepaid expenses and other assets | (4,962 | ) | (2,284 | ) | |||
Accrued straight-line rents receivable | (10,365 | ) | (8,009 | ) | |||
Accounts payable, accrued expenses and other liabilities | (11,597 | ) | (661 | ) | |||
Net cash provided by operating activities | 114,534 | 116,926 | |||||
Investing activities: | |||||||
Investments in acquired real estate and related intangible assets, net of cash acquired | — | (228,461 | ) | ||||
Investments in development in process | (69,928 | ) | (11,499 | ) | |||
Investments in tenant improvements and deferred leasing costs | (54,794 | ) | (42,343 | ) | |||
Investments in building improvements | (28,877 | ) | (26,466 | ) | |||
Net proceeds from disposition of real estate assets | 8,975 | 60,381 | |||||
Distributions of capital from unconsolidated affiliates | 468 | 435 | |||||
Investments in mortgages and notes receivable | (234 | ) | (432 | ) | |||
Repayments of mortgages and notes receivable | 16,817 | 276 | |||||
Investments in unconsolidated affiliates | (6,225 | ) | (429 | ) | |||
Changes in restricted cash and other investing activities | 686 | 7,853 | |||||
Net cash (used in) investing activities | (133,112 | ) | (240,685 | ) | |||
Financing activities: | |||||||
Dividends on Common Stock | (76,605 | ) | (69,563 | ) | |||
Redemptions of Common Units | (93 | ) | — | ||||
Dividends on Preferred Stock | (1,254 | ) | (1,254 | ) | |||
Distributions to noncontrolling interests in the Operating Partnership | (2,497 | ) | (3,140 | ) | |||
Distributions to noncontrolling interests in consolidated affiliates | (940 | ) | (408 | ) | |||
Proceeds from the issuance of Common Stock | 11,404 | 126,738 | |||||
Costs paid for the issuance of Common Stock | (42 | ) | (1,711 | ) | |||
Repurchase of shares related to tax withholdings | (2,650 | ) | (2,537 | ) | |||
Borrowings on revolving credit facility | 302,100 | 346,300 | |||||
Repayments of revolving credit facility | (360,800 | ) | (233,900 | ) | |||
Borrowings on mortgages and notes payable | 296,949 | — | |||||
Repayments of mortgages and notes payable | (134,648 | ) | (39,610 | ) | |||
Payments on financing obligations | (1,364 | ) | (575 | ) | |||
Additions to deferred financing costs and other financing activities | (2,467 | ) | (242 | ) | |||
Net cash provided by financing activities | 27,093 | 120,098 | |||||
Net increase/(decrease) in cash and cash equivalents | $ | 8,515 | $ | (3,661 | ) |
Six Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Net increase/(decrease) in cash and cash equivalents | $ | 8,515 | $ | (3,661 | ) | ||
Cash and cash equivalents at beginning of the period | 10,184 | 13,783 | |||||
Cash and cash equivalents at end of the period | $ | 18,699 | $ | 10,122 |
Six Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Cash paid for interest, net of amounts capitalized | $ | 41,468 | $ | 40,480 |
Six Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Unrealized gains/(losses) on cash flow hedges | $ | (4,250 | ) | $ | 6,599 | ||
Conversions of Common Units to Common Stock | 162 | 2,851 | |||||
Changes in accrued capital expenditures | 10,726 | 12,618 | |||||
Write-off of fully depreciated real estate assets | 16,994 | 17,732 | |||||
Write-off of fully amortized deferred financing and leasing costs | 13,273 | 11,363 | |||||
Unrealized gains on marketable securities of non-qualified deferred compensation plan | 210 | 312 | |||||
Adjustment of noncontrolling interests in the Operating Partnership to fair value | 18,337 | 9,649 | |||||
Unrealized gains on tax increment financing bond | 270 | 299 | |||||
Receivable related to redemption of investment in unconsolidated affiliate | 4,660 | — |
June 30, 2014 | December 31, 2013 | ||||||
Assets: | |||||||
Real estate assets, at cost: | |||||||
Land | $ | 382,575 | $ | 393,602 | |||
Buildings and tenant improvements | 3,724,554 | 3,748,869 | |||||
Development in process | 114,790 | 44,621 | |||||
Land held for development | 104,873 | 110,374 | |||||
4,326,792 | 4,297,466 | ||||||
Less-accumulated depreciation | (1,011,477 | ) | (985,244 | ) | |||
Net real estate assets | 3,315,315 | 3,312,222 | |||||
Real estate and other assets, net, held for sale | 68,159 | — | |||||
Cash and cash equivalents | 18,793 | 10,281 | |||||
Restricted cash | 10,602 | 14,169 | |||||
Accounts receivable, net of allowance of $1,390 and $1,648, respectively | 27,972 | 26,430 | |||||
Mortgages and notes receivable, net of allowance of $275 and $302, respectively | 10,140 | 26,409 | |||||
Accrued straight-line rents receivable, net of allowance of $798 and $1,063, respectively | 132,051 | 126,014 | |||||
Investments in unconsolidated affiliates | 30,387 | 29,901 | |||||
Deferred financing and leasing costs, net of accumulated amortization of $102,430 and $92,220, respectively | 218,022 | 222,211 | |||||
Prepaid expenses and other assets, net of accumulated amortization of $13,466 and $12,905, respectively | 45,383 | 39,561 | |||||
Total Assets | $ | 3,876,824 | $ | 3,807,198 | |||
Liabilities, Redeemable Operating Partnership Units and Equity: | |||||||
Mortgages and notes payable | $ | 2,058,972 | $ | 1,956,299 | |||
Accounts payable, accrued expenses and other liabilities | 219,250 | 218,887 | |||||
Financing obligations | 24,672 | 26,664 | |||||
Total Liabilities | 2,302,894 | 2,201,850 | |||||
Commitments and contingencies | |||||||
Redeemable Operating Partnership Units: | |||||||
Common Units, 2,936,955 and 2,943,872 outstanding, respectively | 123,205 | 106,480 | |||||
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 | 152,282 | 135,557 | |||||
Equity: | |||||||
Common Units: | |||||||
General partner Common Units, 928,899 and 924,560 outstanding, respectively | 14,048 | 14,508 | |||||
Limited partner Common Units, 89,024,000 and 88,587,546 outstanding, respectively | 1,391,002 | 1,436,498 | |||||
Accumulated other comprehensive loss | (4,719 | ) | (2,611 | ) | |||
Noncontrolling interests in consolidated affiliates | 21,317 | 21,396 | |||||
Total Equity | 1,421,648 | 1,469,791 | |||||
Total Liabilities, Redeemable Operating Partnership Units and Equity | $ | 3,876,824 | $ | 3,807,198 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Rental and other revenues | $ | 152,722 | $ | 132,618 | $ | 301,175 | $ | 262,995 | |||||||
Operating expenses: | |||||||||||||||
Rental property and other expenses | 55,258 | 47,295 | 111,632 | 93,915 | |||||||||||
Depreciation and amortization | 50,443 | 40,624 | 98,608 | 80,712 | |||||||||||
Impairments of real estate assets | 588 | — | 588 | — | |||||||||||
General and administrative | 8,750 | 8,419 | 19,480 | 18,975 | |||||||||||
Total operating expenses | 115,039 | 96,338 | 230,308 | 193,602 | |||||||||||
Interest expense: | |||||||||||||||
Contractual | 20,640 | 22,398 | 41,390 | 45,196 | |||||||||||
Amortization of deferred financing costs | 799 | 948 | 1,451 | 1,897 | |||||||||||
Financing obligations | (226 | ) | (60 | ) | (266 | ) | 61 | ||||||||
21,213 | 23,286 | 42,575 | 47,154 | ||||||||||||
Other income: | |||||||||||||||
Interest and other income | 1,410 | 1,617 | 2,809 | 3,400 | |||||||||||
Gains/(losses) on debt extinguishment | 18 | — | 18 | (164 | ) | ||||||||||
1,428 | 1,617 | 2,827 | 3,236 | ||||||||||||
Income from continuing operations before disposition of investment properties and activity in unconsolidated affiliates | 17,898 | 14,611 | 31,119 | 25,475 | |||||||||||
Gains/(losses) on disposition of property | 5,947 | (37 | ) | 5,947 | (37 | ) | |||||||||
Equity in earnings of unconsolidated affiliates | 667 | 916 | 638 | 1,299 | |||||||||||
Income from continuing operations | 24,512 | 15,490 | 37,704 | 26,737 | |||||||||||
Discontinued operations: | |||||||||||||||
Income from discontinued operations | — | 1,995 | — | 4,339 | |||||||||||
Impairments of real estate assets | — | (1,066 | ) | — | (2,194 | ) | |||||||||
Net gains on disposition of discontinued operations | — | 13,163 | 384 | 14,407 | |||||||||||
— | 14,092 | 384 | 16,552 | ||||||||||||
Net income | 24,512 | 29,582 | 38,088 | 43,289 | |||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (438 | ) | (187 | ) | (861 | ) | (390 | ) | |||||||
Distributions on Preferred Units | (627 | ) | (627 | ) | (1,254 | ) | (1,254 | ) | |||||||
Net income available for common unitholders | $ | 23,447 | $ | 28,768 | $ | 35,973 | $ | 41,645 | |||||||
Earnings per Common Unit – basic: | |||||||||||||||
Income from continuing operations available for common unitholders | $ | 0.25 | $ | 0.17 | $ | 0.38 | $ | 0.30 | |||||||
Income from discontinued operations available for common unitholders | — | 0.16 | 0.01 | 0.19 | |||||||||||
Net income available for common unitholders | $ | 0.25 | $ | 0.33 | $ | 0.39 | $ | 0.49 | |||||||
Weighted average Common Units outstanding – basic | 92,782 | 86,090 | 92,640 | 85,223 | |||||||||||
Earnings per Common Unit – diluted: | |||||||||||||||
Income from continuing operations available for common unitholders | $ | 0.25 | $ | 0.17 | $ | 0.38 | $ | 0.30 | |||||||
Income from discontinued operations available for common unitholders | — | 0.16 | 0.01 | 0.19 | |||||||||||
Net income available for common unitholders | $ | 0.25 | $ | 0.33 | $ | 0.39 | $ | 0.49 | |||||||
Weighted average Common Units outstanding – diluted | 92,903 | 86,222 | 92,763 | 85,343 | |||||||||||
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 | $ | 23,447 | $ | 14,676 | $ | 35,589 | $ | 25,093 | |||||||
Income from discontinued operations available for common unitholders | — | 14,092 | 384 | 16,552 | |||||||||||
Net income available for common unitholders | $ | 23,447 | $ | 28,768 | $ | 35,973 | $ | 41,645 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Comprehensive income: | |||||||||||||||
Net income | $ | 24,512 | $ | 29,582 | $ | 38,088 | $ | 43,289 | |||||||
Other comprehensive income/(loss): | |||||||||||||||
Unrealized gains/(losses) on tax increment financing bond | 105 | (91 | ) | 270 | 299 | ||||||||||
Unrealized gains/(losses) on cash flow hedges | (2,846 | ) | 6,319 | (4,250 | ) | 6,599 | |||||||||
Amortization of cash flow hedges | 944 | 800 | 1,872 | 1,588 | |||||||||||
Total other comprehensive income/(loss) | (1,797 | ) | 7,028 | (2,108 | ) | 8,486 | |||||||||
Total comprehensive income | 22,715 | 36,610 | 35,980 | 51,775 | |||||||||||
Less-comprehensive (income) attributable to noncontrolling interests | (438 | ) | (187 | ) | (861 | ) | (390 | ) | |||||||
Comprehensive income attributable to common unitholders | $ | 22,277 | $ | 36,423 | $ | 35,119 | $ | 51,385 |
Common Units | Accumulated Other Comprehensive Loss | Noncontrolling Interests in Consolidated Affiliates | Total Partners’ Capital | ||||||||||||||||
General Partners’ Capital | Limited Partners’ Capital | ||||||||||||||||||
Balance at December 31, 2013 | $ | 14,508 | $ | 1,436,498 | $ | (2,611 | ) | $ | 21,396 | $ | 1,469,791 | ||||||||
Issuances of Common Units, net of units redeemed for tax withholdings | 87 | 8,625 | — | — | 8,712 | ||||||||||||||
Redemptions of Common Units | (1 | ) | (92 | ) | — | — | (93 | ) | |||||||||||
Distributions paid on Common Units | (788 | ) | (77,966 | ) | — | — | (78,754 | ) | |||||||||||
Distributions paid on Preferred Units | (13 | ) | (1,241 | ) | — | — | (1,254 | ) | |||||||||||
Share-based compensation expense, net of forfeitures | 54 | 5,327 | — | — | 5,381 | ||||||||||||||
Distributions to noncontrolling interests in consolidated affiliates | — | — | — | (940 | ) | (940 | ) | ||||||||||||
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner | (171 | ) | (17,004 | ) | — | — | (17,175 | ) | |||||||||||
Net (income) attributable to noncontrolling interests in consolidated affiliates | (9 | ) | (852 | ) | — | 861 | — | ||||||||||||
Comprehensive income: | |||||||||||||||||||
Net income | 381 | 37,707 | — | — | 38,088 | ||||||||||||||
Other comprehensive loss | — | — | (2,108 | ) | — | (2,108 | ) | ||||||||||||
Total comprehensive income | 35,980 | ||||||||||||||||||
Balance at June 30, 2014 | $ | 14,048 | $ | 1,391,002 | $ | (4,719 | ) | $ | 21,317 | $ | 1,421,648 |
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 units redeemed for 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 |
Six Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Operating activities: | |||||||
Net income | $ | 38,088 | $ | 43,289 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 98,608 | 84,767 | |||||
Amortization of lease incentives and acquisition-related intangible assets and liabilities | 234 | (198 | ) | ||||
Share-based compensation expense | 5,381 | 4,737 | |||||
Allowance for losses on accounts and accrued straight-line rents receivable | 1,278 | 380 | |||||
Accrued interest on mortgages and notes receivable | (232 | ) | — | ||||
Amortization of deferred financing costs | 1,451 | 1,897 | |||||
Amortization of cash flow hedges | 1,872 | 1,588 | |||||
Amortization of mortgages and notes payable fair value adjustments | (902 | ) | — | ||||
Impairments of real estate assets | 588 | 2,194 | |||||
(Gains)/losses on debt extinguishment | (18 | ) | 164 | ||||
Net gains on disposition of property | (6,331 | ) | (14,370 | ) | |||
Equity in earnings of unconsolidated affiliates | (638 | ) | (1,299 | ) | |||
Changes in financing obligations | (628 | ) | (391 | ) | |||
Distributions of earnings from unconsolidated affiliates | 1,216 | 2,814 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 1,491 | 2,295 | |||||
Prepaid expenses and other assets | (4,892 | ) | (2,189 | ) | |||
Accrued straight-line rents receivable | (10,365 | ) | (8,009 | ) | |||
Accounts payable, accrued expenses and other liabilities | (11,568 | ) | (587 | ) | |||
Net cash provided by operating activities | 114,633 | 117,082 | |||||
Investing activities: | |||||||
Investments in acquired real estate and related intangible assets, net of cash acquired | — | (228,461 | ) | ||||
Investments in development in process | (69,928 | ) | (11,499 | ) | |||
Investments in tenant improvements and deferred leasing costs | (54,794 | ) | (42,343 | ) | |||
Investments in building improvements | (28,877 | ) | (26,466 | ) | |||
Net proceeds from disposition of real estate assets | 8,975 | 60,381 | |||||
Distributions of capital from unconsolidated affiliates | 468 | 435 | |||||
Investments in mortgages and notes receivable | (234 | ) | (432 | ) | |||
Repayments of mortgages and notes receivable | 16,817 | 276 | |||||
Investments in unconsolidated affiliates | (6,225 | ) | (429 | ) | |||
Changes in restricted cash and other investing activities | 686 | 7,853 | |||||
Net cash (used in) investing activities | (133,112 | ) | (240,685 | ) | |||
Financing activities: | |||||||
Distributions on Common Units | (78,754 | ) | (72,355 | ) | |||
Redemptions of Common Units | (93 | ) | — | ||||
Distributions on Preferred Units | (1,254 | ) | (1,254 | ) | |||
Distributions to noncontrolling interests in consolidated affiliates | (940 | ) | (408 | ) | |||
Proceeds from the issuance of Common Units | 11,404 | 126,738 | |||||
Costs paid for the issuance of Common Units | (42 | ) | (1,711 | ) | |||
Repurchase of units related to tax withholdings | (2,650 | ) | (2,537 | ) | |||
Borrowings on revolving credit facility | 302,100 | 346,300 | |||||
Repayments of revolving credit facility | (360,800 | ) | (233,900 | ) | |||
Borrowings on mortgages and notes payable | 296,949 | — | |||||
Repayments of mortgages and notes payable | (134,648 | ) | (39,610 | ) | |||
Payments on financing obligations | (1,364 | ) | (575 | ) | |||
Additions to deferred financing costs and other financing activities | (2,917 | ) | (747 | ) | |||
Net cash provided by financing activities | 26,991 | 119,941 | |||||
Net increase/(decrease) in cash and cash equivalents | $ | 8,512 | $ | (3,662 | ) |
Six Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Net increase/(decrease) in cash and cash equivalents | $ | 8,512 | $ | (3,662 | ) | ||
Cash and cash equivalents at beginning of the period | 10,281 | 13,867 | |||||
Cash and cash equivalents at end of the period | $ | 18,793 | $ | 10,205 |
Six Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Cash paid for interest, net of amounts capitalized | $ | 41,468 | $ | 40,480 |
Six Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Unrealized gains/(losses) on cash flow hedges | $ | (4,250 | ) | $ | 6,599 | ||
Changes in accrued capital expenditures | 10,726 | 12,618 | |||||
Write-off of fully depreciated real estate assets | 16,994 | 17,732 | |||||
Write-off of fully amortized deferred financing and leasing costs | 13,273 | 11,363 | |||||
Unrealized gains on marketable securities of non-qualified deferred compensation plan | 210 | 312 | |||||
Adjustment of Redeemable Common Units to fair value | 16,725 | 5,482 | |||||
Unrealized gains on tax increment financing bond | 270 | 299 | |||||
Receivable related to redemption of investment in unconsolidated affiliate | 4,660 | — |
June 30, 2014 | December 31, 2013 | ||||||
Seller financing (first mortgages) | $ | — | $ | 16,454 | |||
Less allowance | — | — | |||||
— | 16,454 | ||||||
Mortgage receivable | 9,901 | 9,435 | |||||
Less allowance | — | — | |||||
9,901 | 9,435 | ||||||
Promissory notes | 514 | 822 | |||||
Less allowance | (275 | ) | (302 | ) | |||
239 | 520 | ||||||
Mortgages and notes receivable, net | $ | 10,140 | $ | 26,409 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Beginning notes receivable allowance | $ | 300 | $ | 437 | $ | 302 | $ | 182 | |||||||
Recoveries/write-offs/other | (25 | ) | (61 | ) | (27 | ) | 194 | ||||||||
Total notes receivable allowance | $ | 275 | $ | 376 | $ | 275 | $ | 376 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Income Statements: | |||||||||||||||
Rental and other revenues | $ | 12,845 | $ | 23,935 | $ | 25,278 | $ | 47,451 | |||||||
Expenses: | |||||||||||||||
Rental property and other expenses | 6,236 | 11,739 | 12,439 | 22,948 | |||||||||||
Depreciation and amortization | 3,328 | 6,227 |