2 unchanged sentences
The statements in this section represent the conclusions of Theodore J.
−Removed: Klinck, the Company’s President and Chief Executive Officer (“CEO”), and Mark F.
−Removed: Mulhern, the Company’s Executive Vice President and Chief Financial Officer (“CFO”).
+Added: Klinck, the Company’s President and Chief Executive Officer (“CEO”), and Brendan C.
+Added: Maiorana, the Company’s Executive Vice President and Chief Financial Officer (“CFO”).
The CEO and CFO evaluations of our controls and procedures include a review of the controls’ objectives and design, the controls’ implementation by us and the effect of the controls on the information generated for use in this Annual Report.
37 unchanged sentences
Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.
−Removed: We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.
−Removed: federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
+Added: We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the US federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB.
3 unchanged sentences
Definition and Limitations of Internal Control Over Financial Reporting
−Removed: A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
+Added: A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”).
A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
15 unchanged sentences
OTHER INFORMATION
+Added: DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
+Added: Not applicable.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
24 unchanged sentences
4.5 Officers’ Certificate Establishing the Terms of the 3.625% Notes, dated as of December 18, 2012 (filed as part of the Company’s Current Report on Form 8-K dated December 18, 2012)
−Removed: 4.6 Form of 3.20% Notes due June 15, 2021 (filed as part of the Company ’ s Current Report on Form 8-K dated May 27, 2014)
−Removed: 4.7 Officers ’ Certificate Establishing the Terms of the 3.20% Notes, dated as of May 27, 2014 (filed as part of the Company ’ s Current Report on Form 8-K dated May 27, 2014)
4.6 Form of 4.125% Notes due March 15, 2028 (filed as part of the Company’s Current Report on Form 8-K dated March 5, 2018)
10 unchanged sentences
1, dated as of July 22, 2004, to the Second Restated Agreement of Limited Partnership, dated as of January 1, 2000, of the Operating Partnership (filed as part of the Company’s Annual Report on Form 10-K for the year ended December 31, 2004)
−Removed: Number Description
10.3 Amendment No.
1 unchanged sentence
10.4 * 2015 Long-Term Equity Incentive Plan (filed as part of the Company’s Current Report on Form 8-K dated May 13, 2015)
+Added: Number Description
10.5 Form of warrants to purchase Common Stock of the Company (filed as part of the Company’s Annual Report on Form 10-K for the year ended December 31, 1997)
5 unchanged sentences
Klinck (filed as part of the Company’s Current Report on Form 8-K dated September 1, 2015)
−Removed: 10.9 * Executive Supplemental Employment Agreement, dated as of September 29, 2014 between the Company and Mark F.
−Removed: Mulhern (filed as part of the Company ’ s Current Report on Form 8-K dated October 1, 2014)
10.9 * Amended and Restated Executive Supplemental Employment Agreement, dated as of February 12, 2013, between the Company and Jeffrey D.
4 unchanged sentences
Leary (filed as part of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019)
−Removed: 10.13 Fifth Amended and Restated Credit Agreement, dated as of October 18, 2017, by and among the Company, the Operating Partnership, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Wells Fargo Bank, National Association and PNC Bank, National Association, as Co-Syndication Agents, and the Other Lenders named therein (filed as part of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017)
−Removed: 21 Schedule of Subsidiaries (filed as part of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019)
+Added: 10.12 Sixth Amended and Restated Credit Agreement, dated as of March 18, 2021, by and among the Company, the Operating Partnership, Bank of America, N.A., as Administrative Agent, Wells Fargo Bank, National Association and PNC Bank, National Association, as Co-Syndication Agents, and the Other Lenders named therein (filed as part of the Company’s Current Report on Form 8-K dated March 19, 2021)
+Added: 10.13 * 2021 Long-Term Equity Incentive Plan (filed as part of the Company’s Current Report on Form 8-K dated May 11, 2021)
+Added: 21 Schedule of Subsidiaries
23.1 Consent of Deloitte & Touche LLP for the Company
18 unchanged sentences
Highwoods Properties, Inc.
−Removed: Report of Independent Registered Public Accounting Firm
+Added: Report of Independent Registered Public Accounting Firm (PCAOB ID No.
Consolidated Financial Statements:
5 unchanged sentences
Highwoods Realty Limited Partnership:
−Removed: Report of Independent Registered Public Accounting Firm
+Added: Report of Independent Registered Public Accounting Firm (PCAOB ID No.
Consolidated Financial Statements:
10 unchanged sentences
We have audited the accompanying consolidated balance sheets of Highwoods Properties, Inc.
−Removed: and subsidiaries (the “Company”) as of December 31, 2020 and 2019, the related consolidated statements of income, comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2020, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”).
+Added: and subsidiaries (the “Company”) as of December 31, 2021 and 2020, the related consolidated statements of income, comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2021, and the related notes and the schedule listed in the Index at Item 15 (collectively, the “financial statements”).
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.
11 unchanged sentences
We believe that our audits provide a reasonable basis for our opinion.
−Removed: Critical Audit Matter
−Removed: The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
−Removed: The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
−Removed: Impairment of Real Estate Assets - Refer to Notes 1 and 3 to the financial statements
+Added: Critical Audit Matters
+Added: The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
+Added: The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
+Added: Impairment of Real Estate Assets - Refer to Note 1 to the financial statements
Critical Audit Matter Description
2 unchanged sentences
Changes in those judgments could have a material impact on the real estate assets that are identified for further analysis.
−Removed: Given the Company’s evaluation of possible indications of impairment of real estate assets requires management to make judgments, performing audit procedures to evaluate whether management appropriately identified events or changes in circumstances indicating that the carrying amounts of real estate assets may not be recoverable required a high degree of auditor judgment.
+Added: Given the Company’s evaluation of possible indications of impairment of real estate assets requires management to make judgments, performing audit procedures to evaluate whether management appropriately identified events or changes in
+Added: circumstances indicating that the carrying amounts of real estate assets may not be recoverable required a high degree of auditor judgment.
How the Critical Audit Matter Was Addressed in the Audit
3 unchanged sentences
– Inquiring of management and reading investment committee and board minutes to identify properties that should be evaluated as non-core and therefore may impact the anticipated holding period.
−Removed: ◦ Testing real estate assets for possible indications of impairment, including searching for adverse asset-specific circumstances and/or market conditions by circulating a questionnaire to regional property managers and using reputable market surveys.
+Added: – Testing real estate assets for possible indications of impairment, including searching for adverse asset-specific circumstances and/or market conditions by reading questionnaires to regional property managers and using reputable market surveys.
– With the assistance of our fair value specialists, developing an independent expectation of impairment indicators and comparing such expectation to management’s analysis.
+Added: Real Estate and Related Assets—Acquisitions—Refer to Note 1, 3 and 6 to the financial statements
+Added: Critical Audit Matter Description
+Added: During 2021, the Company acquired a portfolio of real estate assets in Charlotte, Raleigh, and Atlanta for a net purchase price of $653.5 million and acquired its joint venture partner’s 75.0% interest in a portfolio of assets in Raleigh for a net purchase price of $131.3 million.
+Added: The Company accounted for these transactions as asset acquisitions.
+Added: The purchase prices paid for the assets acquired and liabilities assumed was allocated, based on relative fair values as determined by management, with the assistance of third-party specialists, to land, buildings, tenant improvements and intangible assets and liabilities such as above and below market leases and acquired in-place leases.
+Added: Management assessed the relative fair value based on estimated cash flow projections that utilized discount and capitalization rates as well as available market information.
+Added: Above and below market secured loans assumed in the transactions were assessed based on the present value of the difference between the property specific mortgage interest rate and the market interest rate over the years to maturity of the loan.
+Added: Given the allocation of relative fair value to the assets acquired and liabilities assumed and the determination of the above and below market debt value required management to make significant estimates related to assumptions such as discount rates, capitalization rates, market rental rates, land values and market interest rates, performing audit procedures to evaluate the reasonableness of these assumptions required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.
+Added: How the Critical Audit Matter Was Addressed in the Audit
+Added: Our audit procedures related to the relative fair value of assets acquired and liabilities assumed included the following, among others:
+Added: • We tested the effectiveness of controls over the purchase price allocations, including management’s controls over the review of the third-party appraisals, the identification of real estate assets, intangible assets and liabilities and the valuation methodology for estimating the relative fair value of assets acquired and liabilities assumed.
+Added: • With the assistance of our fair value specialists, we evaluated the reasonableness of the valuation methodology, discount rates, capitalization rates, market rental rates, land values and market interest rates by developing a range of independent estimates and comparing our estimates to those used by management.
+Added: • We tested the mathematical accuracy of the valuation models and the source information underlying the determination of the intangible assets and liabilities fair value.
/s/ Deloitte & Touche LLP
83 unchanged sentences
Other comprehensive income/(loss):
−Removed: Unrealized gains/(losses) on cash flow hedges ( 1,238 ) ( 9,134 ) 4,161
+Added: Unrealized losses on cash flow hedges ( 19 ) ( 1,238 ) ( 9,134 )
Amortization of cash flow hedges 508 247 ( 1,250 )
17 unchanged sentences
Distributions to noncontrolling interests in consolidated affiliates — — — — ( 1,767 ) — ( 1,767 )
+Added: Contributions from noncontrolling interests in consolidated affiliates — — — — 4,987 — 4,987
Issuances of restricted stock 190,934 — — — — — — —
5 unchanged sentences
Net income — — — — — 141,683 141,683
−Removed: Other comprehensive income — — — 2,075 — — 2,075
+Added: Other comprehensive loss — — — ( 10,384 ) — — ( 10,384 )
Total comprehensive income 131,299
8 unchanged sentences
Distributions to noncontrolling interests in consolidated affiliates — — — — ( 1,138 ) — ( 1,138 )
−Removed: Contributions from noncontrolling interests in consolidated affiliates — — — — 4,987 — 4,987
Issuances of restricted stock 149,304 — — — — — — —
41 unchanged sentences
Net income — — — — — 323,310 323,310
−Removed: Other comprehensive loss — — — ( 991 ) — — ( 991 )
+Added: Other comprehensive income — — — 489 — — 489
Total comprehensive income
12 unchanged sentences
Amortization of lease incentives and acquisition-related intangible assets and liabilities ( 1,903 ) ( 2,537 ) ( 505 )
−Removed: ( 2,537 ) ( 505 ) ( 1,943 )
Share-based compensation expense 8,646 6,210 7,180
−Removed: Credit losses on operating lease receivables 5,458 9,861 1,212
+Added: Net credit losses on operating lease receivables 425 5,458 9,861
Write-off of mortgages and notes receivable — — 4,087
20 unchanged sentences
Investments in building improvements ( 48,405 ) ( 62,154 ) ( 53,826 )
+Added: Investment in acquired controlling interest in unconsolidated affiliate ( 127,339 ) — —
Net proceeds from disposition of real estate assets 374,016 484,311 133,326
43 unchanged sentences
2021 2020 2019
−Removed: Unrealized gains/(losses) on cash flow hedges $ ( 1,238 ) $ ( 9,134 ) $ 4,161
+Added: Unrealized losses on cash flow hedges $ ( 19 ) $ ( 1,238 ) $ ( 9,134 )
Conversions of Common Units to Common Stock 15,076 145 663
5 unchanged sentences
Adjustment of noncontrolling interests in the Operating Partnership to fair value 11,461 ( 30,617 ) 29,557
+Added: Assumption of mortgages and notes payable related to acquisition activities 403,000 — —
Issuances of Common Units to acquire real estate assets — 6,163 —
2 unchanged sentences
Initial recognition of lease liabilities related to right of use assets 5,310 — 35,349
+Added: Future consideration in connection with the acquisition of land 16,000 — —
(1) Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities at December 31, 2021, 2020 and 2019 were $ 56.1 million, $ 66.0 million and $ 67.9 million, respectively.
3 unchanged sentences
Opinion on the Financial Statements
−Removed: We have audited the accompanying consolidated balance sheets of Highwoods Realty Limited Partnership and subsidiaries (the “Operating Partnership”) as of December 31, 2020 and 2019, the related consolidated statements of income, comprehensive income, capital, and cash flows for each of the three years in the period ended December 31, 2020, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”).
+Added: We have audited the accompanying consolidated balance sheets of Highwoods Realty Limited Partnership and subsidiaries (the “Operating Partnership”) as of December 31, 2021 and 2020, the related consolidated statements of income, comprehensive income, capital, and cash flows for each of the three years in the period ended December 31, 2021, and the related notes and the schedule listed in the Index at Item 15 (collectively, the “financial statements”).
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Operating Partnership as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.
13 unchanged sentences
We believe that our audits provide a reasonable basis for our opinion.
−Removed: Critical Audit Matter
−Removed: The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
−Removed: The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
−Removed: Impairment of Real Estate Assets - Refer to Notes 1 and 3 to the financial statements
+Added: Critical Audit Matters
+Added: The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
+Added: The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
+Added: Impairment of Real Estate Assets - Refer to Note 1 to the financial statements
Critical Audit Matter Description
2 unchanged sentences
Changes in those judgments could have a material impact on the real estate assets that are identified for further analysis.
−Removed: Given the Operating Partnership’s evaluation of possible indications of impairment of real estate assets requires management to make judgments, performing audit procedures to evaluate whether management appropriately identified events or changes in
−Removed: circumstances indicating that the carrying amounts of real estate assets may not be recoverable required a high degree of auditor judgment.
+Added: Given the Operating Partnership’s evaluation of possible indications of impairment of real estate assets requires management to make judgments, performing audit procedures to evaluate whether management appropriately identified events or changes in circumstances indicating that the carrying amounts of real estate assets may not be recoverable required a high degree of auditor judgment.
How the Critical Audit Matter Was Addressed in the Audit
3 unchanged sentences
– Inquiring of management and reading investment committee and board minutes to identify properties that should be evaluated as non-core and therefore may impact the anticipated holding period.
−Removed: ◦ Testing real estate assets for possible indications of impairment, including searching for adverse asset-specific circumstances and/or market conditions by circulating a questionnaire to regional property managers and using reputable market surveys.
+Added: – Testing real estate assets for possible indications of impairment, including searching for adverse asset-specific circumstances and/or market conditions by reading questionnaires to regional property managers and using reputable market surveys.
– With the assistance of our fair value specialists, developing an independent expectation of impairment indicators and comparing such expectation to management’s analysis.
+Added: Real Estate and Related Assets — Acquisitions — Refer to Note 1, 3 and 6 to the financial statements
+Added: Critical Audit Matter Description
+Added: During 2021, the Operating Partnership acquired a portfolio of real estate assets in Charlotte, Raleigh, and Atlanta for a net purchase price of $653.5 million and acquired its joint venture partner’s 75.0% interest in a portfolio of assets in Raleigh for a net purchase price of $131.3 million.
+Added: The Operating Partnership accounted for these transactions as asset acquisitions.
+Added: The purchase prices paid for the assets acquired and liabilities assumed was allocated, based on relative fair values as determined by management, with the assistance of third-party specialists, to land, buildings, tenant improvements and intangible assets and liabilities such as above and below market leases and acquired in-place leases.
+Added: Management assessed the relative fair value based on estimated cash flow projections that utilized discount and capitalization rates as well as available market information.
+Added: Above and below market secured loans assumed in the transactions were assessed based on the present value of the difference between the property specific mortgage interest rate and the market interest rate over the years to maturity of the loan.
+Added: Given the allocation of relative fair value to the assets acquired and liabilities assumed and the determination of the above and below market debt value required management to make significant estimates related to assumptions such as discount rates, capitalization rates, market rental rates, land values and market interest rates, performing audit procedures to evaluate the reasonableness of these assumptions required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.
+Added: How the Critical Audit Matter Was Addressed in the Audit
+Added: Our audit procedures related to the relative fair value of assets acquired and liabilities assumed included the following, among others:
+Added: • We tested the effectiveness of controls over the purchase price allocations, including management’s controls over the review of the third-party appraisals, the identification of real estate assets, intangible assets and liabilities and the valuation methodology for estimating the relative fair value of assets acquired and liabilities assumed.
+Added: • With the assistance of our fair value specialists, we evaluated the reasonableness of the valuation methodology, discount rates, capitalization rates, market rental rates, land values and market interest rates by developing a range of independent estimates and comparing our estimates to those used by management.
+Added: • We tested the mathematical accuracy of the valuation models and the source information underlying the determination of the intangible assets and liabilities fair value.
/s/ Deloitte & Touche LLP
81 unchanged sentences
Other comprehensive income/(loss):
−Removed: Unrealized gains/(losses) on cash flow hedges ( 1,238 ) ( 9,134 ) 4,161
+Added: Unrealized losses on cash flow hedges ( 19 ) ( 1,238 ) ( 9,134 )
Amortization of cash flow hedges 508 247 ( 1,250 )
21 unchanged sentences
— — — ( 1,767 ) ( 1,767 )
+Added: Contributions from noncontrolling interests in consolidated affiliates
+Added: — — — 4,987 4,987
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
4 unchanged sentences
Net income 1,417 140,266 — — 141,683
−Removed: Other comprehensive income — — 2,075 — 2,075
+Added: Other comprehensive loss — — ( 10,384 ) — ( 10,384 )
Total comprehensive income 131,299
9 unchanged sentences
— — — ( 1,138 ) ( 1,138 )
−Removed: Contributions from noncontrolling interests in consolidated affiliates
−Removed: — — — 4,987 4,987
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
17 unchanged sentences
Adjustment of Redeemable Common Units to fair value and contributions/distributions from/to the General Partner
−Removed: 199 19,733 — — 19,932
Net (income) attributable to noncontrolling interests in consolidated affiliates
2 unchanged sentences
Net income 3,233 320,077 — — 323,310
−Removed: Other comprehensive loss — — ( 991 ) — ( 991 )
+Added: Other comprehensive income — — 489 — 489
Total comprehensive income 323,799
11 unchanged sentences
Amortization of lease incentives and acquisition-related intangible assets and liabilities ( 1,903 ) ( 2,537 ) ( 505 )
−Removed: ( 2,537 ) ( 505 ) ( 1,943 )
Share-based compensation expense 8,646 6,210 7,180
−Removed: Credit losses on operating lease receivables 5,458 9,861 1,212
+Added: Net credit losses on operating lease receivables 425 5,458 9,861
Write-off of mortgages and notes receivable — — 4,087
20 unchanged sentences
Investments in building improvements ( 48,405 ) ( 62,154 ) ( 53,826 )
+Added: Investment in acquired controlling interest in unconsolidated affiliate ( 127,339 ) — —
Net proceeds from disposition of real estate assets 374,016 484,311 133,326
41 unchanged sentences
2021 2020 2019
−Removed: Unrealized gains/(losses) on cash flow hedges $ ( 1,238 ) $ ( 9,134 ) $ 4,161
+Added: Unrealized losses on cash flow hedges $ ( 19 ) $ ( 1,238 ) $ ( 9,134 )
Changes in accrued capital expenditures (1)
4 unchanged sentences
Adjustment of Redeemable Common Units to fair value ( 810 ) ( 26,880 ) 27,256
+Added: Assumption of mortgages and notes payable related to acquisition activities 403,000 — —
Issuances of Common Units to acquire real estate assets — 6,163 —
2 unchanged sentences
Initial recognition of lease liabilities related to right of use assets 5,310 — 35,349
+Added: Future consideration in connection with the acquisition of land 16,000 — —
(1) Accrued capital expenditures included in accounts payable, accrued expenses and other liabilities at December 31, 2021, 2020 and 2019 were $ 56.1 million, $ 66.0 million and $ 67.9 million, respectively.
10 unchanged sentences
The Company conducts its activities through Highwoods Realty Limited Partnership (the “Operating Partnership”).
−Removed: At December 31, 2020, we owned or had an interest in 27.2 million rentable square feet of in-service properties, 1.2 million rentable square feet of office properties under development and approximately 230 acres of development land.
+Added: At December 31, 2021, we owned or had an interest in 28.0 million rentable square feet of in-service properties, 0.6 million rentable square feet of office properties under development and development land with approximately 5.0 million rentable square feet of potential office build out.
The Company is the sole general partner of the Operating Partnership.
4 unchanged sentences
The Common Units owned by the Company are not redeemable.
−Removed: During 2020, the Company redeemed 3,570 Common Units for a like number of shares of Common Stock and the Operating Partnership issued 118,592 Common Units to acquire real estate assets.
+Added: During 2021, the Company redeemed 333,920 Common Units for a like number of shares of Common Stock.
Basis of Presentation
3 unchanged sentences
We consolidate joint venture investments, such as interests in partnerships and limited liability companies, when we control the major operating and financial policies of the investment through majority ownership, in our capacity as a general partner or managing member or through some other contractual right.
−Removed: At December 31, 2020, three properties owned through a joint venture investment were consolidated.
−Removed: We also consolidate those entities deemed to be variable interest entities in which we are determined to be the primary beneficiary.
−Removed: At December 31, 2020, we have involvement with, and are the primary beneficiary in, an entity that we concluded to be a variable interest entity (see Note 4).
−Removed: In addition, during 2019, we acquired a building using a special purpose entity owned by a qualified intermediary to facilitate a potential Section 1031 reverse exchange under the Internal Revenue Code.
−Removed: We determined that this entity was a variable interest entity of which we were the primary beneficiary and therefore, we consolidated this entity as of December 31, 2019.
−Removed: During 2020, we completed the exchange by acquiring 100 % of the special purpose entity.
+Added: At December 31, 2021, we had involvement with, and are the primary beneficiary in, an entity that we concluded to be a variable interest entity.
+Added: As such, this entity is consolidated.
+Added: Additionally, at December 31, 2021, we had involvement with, but are not the primary beneficiary in, an entity that we concluded to be a variable interest entity.
+Added: As such, this entity is not consolidated.
+Added: We also owned three properties through a joint venture investment at December 31, 2021 that were consolidated.
+Added: (See Note 4).
All intercompany transactions and accounts have been eliminated.
−Removed: Certain amounts within the Consolidated Statements of Income for the year ended December 31, 2018 were removed and/or combined to conform to the current year presentation.
Use of Estimates
28 unchanged sentences
In estimating costs to execute similar leases, we consider tenant improvements, leasing commissions and legal and other related expenses.
+Added: Assumed debt, if any, is recorded at fair value based on the present value of the expected future payments.
Real estate and other assets are classified as long-lived assets held for use or as long-lived assets held for sale.
1 unchanged sentence
Impairments of Real Estate Assets and Investments in Unconsolidated Affiliates
−Removed: With respect to assets classified as held for use, we perform an impairment analysis if our evaluation of events or changes in circumstances indicate that the carrying value may not be recoverable, such as a significant decline in occupancy, identification of materially adverse legal or environmental factors, change in our designation of an asset from core to non-core, which may impact the anticipated holding period, or a decline in market value to an amount less than cost.
+Added: With respect to assets classified as held for use, we perform an impairment analysis if our evaluation of events or changes in circumstances indicate that the carrying value may not be recoverable, such as a significant decline in occupancy, identification of materially adverse legal or environmental factors, change in our designation of an asset from core to non-core,
+Added: which may impact the anticipated holding period, or a decline in market value to an amount less than cost.
This analysis is generally performed at the property level, except when an asset is part of an interdependent group such as an office park, and consists of determining whether the asset’s carrying amount will be recovered from its undiscounted estimated future operating and residual cash flows.
14 unchanged sentences
Any post-sale involvement is accounted for as separate performance obligations and when the separate performance obligations are satisfied, the sales price allocated to each is recognized.
−Removed: See Note 2 for significant accounting policies and related disclosures with respect to revenue recognition for our leases, accounting for initial direct costs and lease incentive costs and credit losses on operating lease receivables as a result of the lease standard adoption effective January 1, 2019.
+Added: We generally lease our office properties to lessees in exchange for fixed monthly payments that cover rent, property taxes, insurance and certain cost recoveries, primarily common area maintenance (“CAM”).
+Added: Office properties owned by us that are under lease are primarily located in Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa and are leased to a wide variety of lessees across many industries.
+Added: Our leases are operating leases and mostly range from three to 10 years.
+Added: Payments from customers for CAM are considered nonlease components that are separated from lease components and are generally accounted for in accordance with the revenue recognition standard.
+Added: However, we qualified for and elected the practical expedient related to combining the components because the lease component is classified as an operating lease and the timing and pattern of transfer of CAM income, which is not the predominant component, is the same as the lease component.
+Added: As such, consideration for CAM is accounted for as part of the overall consideration in the lease.
+Added: Payments from customers for property taxes and insurance are considered noncomponents of the lease and therefore no consideration is allocated to them because they do not transfer a good or service to the customer.
+Added: Fixed contractual payments from our leases are recognized on a straight-line basis over the terms of the respective leases.
+Added: This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period.
+Added: Straight-line rental revenue is commenced when the customer assumes control of the leased premises.
+Added: Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements.
+Added: Some of our leases are subject to annual changes in the Consumer Price Index (“CPI”).
+Added: Although increases in the CPI are not estimated as part of our measurement of straight-line rental revenue, to the extent that actual CPI is greater or less than the CPI at lease commencement, the amount of rent recognized in a given year is affected accordingly.
+Added: Some of our leases have termination options and/or extension options.
+Added: Termination options allow the customer to terminate the lease prior to the end of the lease term under certain circumstances.
+Added: Termination options generally become effective half way or further into the original lease term and require advance notification from the customer and payment of a termination fee that reimburses us for a portion of the remaining rent under the original lease term and the undepreciated lease inception costs such as commissions, tenant improvements and lease incentives.
+Added: Termination fee income is recognized on a straight-line basis from the date of the executed termination agreement through lease expiration when the amount of the fee is determinable and collectability of the fee is reasonably assured.
+Added: Our extension options generally require a re-negotiation with the customer at market rates.
+Added: Initial direct costs, primarily commissions, related to the leasing of our office properties are included in deferred leasing costs and are stated at amortized cost.
+Added: Such expenditures are part of the investment necessary to execute leases and, therefore, are classified as investment activities in the statement of cash flows.
+Added: All leasing commissions paid to third parties and our in-house personnel for new leases or lease renewals are capitalized.
+Added: Capitalized leasing costs are amortized on a straight-line basis over the initial fixed terms of the respective leases.
+Added: All other costs to negotiate or arrange a lease are expensed as incurred.
+Added: Lease incentive costs, which are payments made to or on behalf of a customer as an incentive to sign a lease, are capitalized in deferred leasing costs and amortized on a straight-line basis over the respective lease terms as a reduction of rental revenues.
+Added: Lease related receivables, which include accounts receivable and accrued straight-line rents receivable, are reduced for credit losses.
+Added: Such amounts are recognized as a reduction to rental and other revenues.
+Added: We regularly evaluate the collectability of our lease related receivables.
+Added: Our evaluation of collectability primarily consists of reviewing the credit quality of our customer, historical trends of the customer and changes in customer payment terms.
+Added: We do not maintain a general reserve to estimate amounts that may not be collectible.
+Added: If our assumptions regarding the collectability of lease related receivables prove incorrect, we could experience credit losses in excess of what was recognized in rental and other revenues.
Discontinued Operations
3 unchanged sentences
We account for our joint venture investments using the equity method of accounting when our interests represent a general partnership interest but substantive participating rights or substantive kick out rights have been granted to the limited partners or when our interests do not represent a general partnership interest and we do not control the major operating and financial policies of the investment.
−Removed: These investments are initially recorded at cost as investments in unconsolidated affiliates and are
−Removed: subsequently adjusted for our share of earnings and cash contributions and distributions.
+Added: These investments are initially recorded at cost as investments in unconsolidated affiliates and are subsequently adjusted for our share of earnings and cash contributions and distributions.
To the extent our cost basis at formation of the joint venture is different than the basis reflected at the joint venture level, the basis difference is amortized over the life of the related assets and included in our share of equity in earnings of unconsolidated affiliates.
4 unchanged sentences
Redeemable Common Units and Preferred Units
−Removed: Limited partners holding Common Units other than the Company (“Redeemable Common Units”) have the right to put any and all of the Common Units to the Operating Partnership and the Company has the right to put any and all of the Preferred Units to the Operating Partnership in exchange for their liquidation preference plus accrued and unpaid distributions in the event of a corresponding redemption by the Company of the underlying Preferred Stock.
+Added: Limited partners holding Common Units other than the Company (“Redeemable Common Units”) have the right to put any and all of the Common Units to the Operating Partnership and the Company has the right to put any and all of the Preferred
+Added: Units to the Operating Partnership in exchange for their liquidation preference plus accrued and unpaid distributions in the event of a corresponding redemption by the Company of the underlying Preferred Stock.
Consequently, these Redeemable Common Units and Preferred Units are classified outside of permanent partners’ capital in the Operating Partnership’s accompanying balance sheets.
37 unchanged sentences
Recently Issued Accounting Standards
−Removed: The Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that changes certain disclosure requirements for fair value measurements.
−Removed: We adopted the ASU as of January 1, 2020 with no material effect on our Notes to Consolidated Financial Statements.
−Removed: The FASB issued an ASU that provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”).
+Added: The Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”).
Entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met.
1 unchanged sentence
Entities can also elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met.
−Removed: The guidance in this ASU is optional and may be elected over the period March 12, 2020 through December 31, 2022 as reference rate reform activities occur.
+Added: The guidance in this ASU is optional and may be elected now through December 31, 2022 as reference rate reform activities occur.
We will continue to evaluate the impact of this ASU;
3 unchanged sentences
Under existing lease guidance, we would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework).
−Removed: The Lease Modification
−Removed: Q&A allows us, if certain criteria have been met, to bypass the lease by lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances.
+Added: The Lease Modification Q&A allows us, if certain criteria have been met, to bypass the lease by lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances.
We have elected the practical expedient and will not apply lease modification accounting on a lease by lease basis where applicable.
−Removed: As a result, $ 3.7 million of deferred rent is included in accounts receivable on our Consolidated Balance Sheets at December 31, 2020.
+Added: As a result, $ 0.7 million and $ 3.7 million of deferred rent is included in accounts receivable on our Consolidated Balance Sheets at December 31, 2021 and 2020, respectively.
On January 1, 2019, we adopted Accounting Standards Codification Topic 842 “Leases” (“ASC 842”), which supersedes Accounting Standards Codification Topic 840 “Leases” (“ASC 840”).
−Removed: Information in this Note 2 with respect to our leases and lease related costs as both lessee and lessor and lease related receivables as lessor is presented under ASC 842 as of and for the years ended December 31, 2020 and 2019 and under ASC 840 for the year ended December 31, 2018.
We adopted ASC 842 using the modified retrospective approach whereby the cumulative effect of adoption was recognized on the adoption date and prior periods were not restated.
14 unchanged sentences
We also elected the practical expedient provided to lessors in a subsequent amendment to ASC 842 that removed the requirement to separate lease and nonlease components, provided certain conditions were met.
−Removed: Information as Lessor Under ASC 842
−Removed: We generally lease our office properties to lessees in exchange for fixed monthly payments that cover rent, property taxes, insurance and certain cost recoveries, primarily common area maintenance (“CAM”).
−Removed: Office properties owned by us that are under lease are primarily located in Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa and are leased to a wide variety of lessees across many industries.
−Removed: Our leases are operating leases and mostly range from three to 10 years.
−Removed: Payments from customers for CAM are considered nonlease components that are separated from lease components and are generally accounted for in accordance with the revenue recognition standard.
−Removed: However, we qualified for and elected the practical expedient related to combining the components because the lease component is classified as an operating lease and the timing and pattern of transfer of CAM income, which is not the predominant component, is the same as the lease component.
−Removed: As such, consideration for CAM is accounted for as part of the overall consideration in the lease.
−Removed: Payments from customers for property taxes and insurance are considered noncomponents of the lease and therefore no consideration is allocated to them because they do not transfer a good or service to the customer.
−Removed: Fixed contractual payments from our leases are recognized on a straight-line basis over the terms of the respective leases.
−Removed: This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period.
−Removed: Straight-line rental revenue is commenced when the customer assumes control of the leased premises.
−Removed: Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements.
−Removed: Some of our leases are subject to annual changes in the Consumer Price Index (“CPI”).
−Removed: Although increases in the CPI are not estimated as part of our measurement of straight-line rental revenue, to the extent that actual CPI is greater or less than the CPI at lease commencement, the amount of straight-line rent recognized in a given year is affected accordingly.
−Removed: Some of our leases have termination options and/or extension options.
−Removed: Termination options allow the customer to terminate the lease prior to the end of the lease term under certain circumstances.
−Removed: Termination options generally become effective half way or further into the original lease term and require advance notification from the customer and payment of a termination fee that reimburses us for a portion of the remaining rent under the original lease term and the undepreciated lease inception costs such as commissions, tenant improvements and lease incentives.
−Removed: Termination fee income is recognized on a straight-line basis from the date of the executed termination agreement through lease expiration when the amount of the fee is determinable and collectability of the fee is reasonably assured.
−Removed: Our extension options generally require a re-negotiation with the customer at market rates.
−Removed: Initial direct costs, primarily commissions, related to the leasing of our office properties are included in deferred leasing costs and are stated at amortized cost.
−Removed: Such expenditures are part of the investment necessary to execute leases and, therefore, are classified as investment activities in the statement of cash flows.
−Removed: All leasing commissions paid to third parties and our in-house personnel for new leases or lease renewals are capitalized.
−Removed: Capitalized leasing costs are amortized on a straight-line basis over the initial fixed terms of the respective leases.
−Removed: All other costs to negotiate or arrange a lease are expensed as incurred.
−Removed: Lease incentive costs, which are payments made to or on behalf of a customer as an incentive to sign a lease, are capitalized in deferred leasing costs and amortized on a straight-line basis over the respective lease terms as a reduction of rental revenues.
−Removed: Lease related receivables, which include accounts receivable and accrued straight-line rents receivable, are reduced for credit losses.
−Removed: Such amounts are recognized as a reduction to rental and other revenues.
−Removed: We regularly evaluate the collectability of our lease related receivables.
−Removed: Our evaluation of collectability primarily consists of reviewing the credit quality of our customer, historical trends of the customer and changes in customer payment terms.
−Removed: We do not maintain a general reserve to estimate amounts that may not be collectible.
−Removed: If our assumptions regarding the collectability of lease related receivables prove incorrect, we could experience credit losses in excess of what was recognized in rental and other revenues.
−Removed: We recognized rental and other revenues related to operating lease payments of $ 726.0 million and $ 723.1 million, of which variable lease payments were $ 56.0 million and $ 65.4 million, during the years ended December 31, 2020 and 2019, respectively.
−Removed: The following table sets forth the undiscounted cash flows for future minimum base rents to be received from customers for leases in effect at December 31, 2020 for the properties that we wholly own:
+Added: Information as Lessor
+Added: We recognized rental and other revenues related to operating lease payments of $ 754.9 million, $ 726.0 million and $ 723.1 million, of which variable lease payments were $ 57.3 million, $ 56.0 million and $ 65.4 million, during the years ended December 31, 2021, 2020 and 2019, respectively.
+Added: The following table sets forth the undiscounted cash flows for future minimum base rents to be received from customers for leases in effect at December 31, 2021 for our consolidated properties:
2022 $ 695,896
Thereafter 1,967,017
−Removed: Information as Lessor Under ASC 840
−Removed: Minimum contractual rents from leases are recognized on a straight-line basis over the terms of the respective leases.
−Removed: This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period.
−Removed: Straight-line rental revenue is commenced when the customer assumes control of the leased premises.
−Removed: Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements.
−Removed: Contingent rental revenue, such as percentage rent, is accrued when the contingency is removed.
−Removed: Termination fee income is recognized at the later of when the customer has vacated the space or the lease has expired and a fully executed lease termination agreement has been delivered, the amount of the fee is determinable and collectability of the fee is reasonably assured.
−Removed: Cost recovery income is determined on a calendar year and a lease-by-lease basis.
−Removed: The most common types of cost recovery income in our leases are CAM and real estate taxes, for which a customer typically pays its pro-rata share of operating and administrative expenses and real estate taxes in excess of the costs incurred during a contractually specified base year.
−Removed: computation of cost recovery income is complex and involves numerous judgments, including the interpretation of lease provisions.
−Removed: Leases are not uniform in dealing with such cost recovery income and there are many variations in the computation.
−Removed: Many customers make monthly fixed payments of CAM, real estate taxes and other cost reimbursement items.
−Removed: We accrue income related to these payments each month.
−Removed: We make quarterly accrual adjustments, positive or negative, to cost recovery income to adjust the recorded amounts to our best estimate of the final annual amounts to be billed and collected.
−Removed: After the end of the calendar year, we compute each customer’s final cost recovery income and, after considering amounts paid by the customer during the year, issue a bill or credit for the appropriate amount to the customer.
−Removed: The differences between the amounts billed less previously received payments and the accrual adjustment are recorded as increases or decreases to cost recovery income when the final bills are prepared, which occurs during the first half of the subsequent year.
−Removed: Accounts receivable, accrued straight-line rents receivable and mortgages and notes receivable are reduced by an allowance for amounts that may become uncollectible in the future.
−Removed: We regularly evaluate the adequacy of our allowance for doubtful accounts.
−Removed: The evaluation primarily consists of reviewing past due account balances and considering such factors as the credit quality of our customer, historical trends of the customer and changes in customer payment terms.
−Removed: Additionally, with respect to customers in bankruptcy, we estimate the probable recovery through bankruptcy claims and adjust the allowance for amounts deemed uncollectible.
−Removed: If our assumptions regarding the collectability of receivables prove incorrect, we could experience losses in excess of our allowance for doubtful accounts.
−Removed: The allowance and its related receivable are written-off when we have concluded there is a low probability of collection and we have discontinued collection efforts.
−Removed: The following table sets forth the activity of allowance for doubtful accounts:
−Removed: Balance at December 31, 2017 Additions Deductions Balance at December 31, 2018
−Removed: Allowance for Doubtful Accounts - Straight-Line Rent $ 819 $ 599 $ ( 777 ) $ 641
−Removed: Allowance for Doubtful Accounts - Accounts Receivable 753 969 ( 556 ) 1,166
−Removed: Allowance for Doubtful Accounts - Notes Receivable 72 — ( 28 ) 44
−Removed: Totals $ 1,644 $ 1,568 $ ( 1,361 ) $ 1,851
−Removed: Lease incentive costs, which are payments made to or on behalf of a customer as an incentive to sign a lease, are capitalized in deferred leasing costs and amortized on a straight-line basis over the respective lease terms as a reduction of rental revenues.
−Removed: Our real estate assets are leased to customers under operating leases.
−Removed: The minimum rental amounts under the leases are generally subject to scheduled fixed increases.
−Removed: Generally, the leases also provide that we receive cost recovery income from customers for increases in certain costs above the costs incurred during a contractually specified base year.
−Removed: Information as Lessee Under ASC 842
−Removed: We have 20 properties subject to operating ground leases in Atlanta, Nashville, Orlando, Raleigh and Tampa with a weighted average remaining term of 51 years.
+Added: Information as Lessee
+Added: We have office assets encompassing 2.8 million rentable square feet subject to operating ground leases in Atlanta, Nashville, Orlando, Raleigh and Tampa with a weighted average remaining term of 51 years.
Rental payments on these leases are adjusted periodically based on either the CPI or on a pre-determined schedule.
6 unchanged sentences
however, these did not impact our calculation of the right of use asset and liability as they extend beyond the useful life of the properties subject to the operating ground leases.
−Removed: We recognized $ 2.6 million and $ 2.5 million of ground lease expense during the years ended December 31, 2020 and 2019, respectively, and paid $ 2.2 million in cash during both years.
+Added: We recognized $ 2.6 million, $ 2.6 million and $ 2.5 million of ground lease expense during the years ended December 31, 2021, 2020 and 2019, respectively, and paid $ 2.3 million, $ 2.2 million and $ 2.2 million in cash during 2021, 2020 and 2019, respectively .
The following table sets forth the undiscounted cash flows of our scheduled obligations for future minimum payments on operating ground leases at December 31, 2021 and a reconciliation of those cash flows to the operating lease liability at December 31, 2021:
2 unchanged sentences
Lease liability $ 33,819
−Removed: Information as Lessee Under ASC 840
−Removed: Certain of our properties are subject to operating ground leases.
−Removed: Rental payments on these leases are adjusted periodically based on either the CPI or on a pre-determined schedule.
−Removed: Total rental property expense recorded for operating ground leases was $ 2.5 million for the year ended December 31, 2018.
+Added: Acquired Finance Lease
+Added: During 2021, we acquired a portfolio of real estate assets from Preferred Apartment Communities, Inc.
+Added: (“PAC”) (see Note 3).
+Added: In conjunction with the acquisition, we assumed the ground leasehold interest to land underneath a parking garage.
+Added: Under the ground lease, we have an obligation to acquire fee simple title to the land at our discretion any time, but no later than October 31, 2029.
+Added: We determined this lease to be a finance lease.
+Added: As such, we recognized a lease liability (in accounts payable, accrued expenses and other liabilities) and a corresponding right of use asset (in prepaid expenses and other assets ) of $ 5.3 million on our Consolidated Balance Sheet on the date of acquisition equal to the present value of the minimum lease payments required under the ground lease.
+Added: Through October 31, 2029, the expected date at which we estimate we will satisfy the obligation and acquire fee simple title to the land, we will recognize interest expense equal to the lease liability times our incremental borrowing rate, which reflects the fixed rate at which we could borrow a similar amount for the same term and with similar collateral.
+Added: We determined this rate to be approximately 2.6 %.
+Added: We also recorded an additional $ 3.1 million right of use asset ( in prepaid expenses and other assets ) to reflect favorable terms of the ground lease when compared with market terms.
+Added: No amortization will be recorded for the right of use assets because they are comprised of land.
Real Estate Assets
−Removed: During 2020, we acquired two development parcels totaling less than one acre in Raleigh and Nashville for an aggregate purchase price of $ 8.5 million, including the issuance of 118,592 Common Units and capitalized acquisition costs.
+Added: During 2021, we acquired a portfolio of real estate assets from PAC.
+Added: The portfolio consists of the following assets:
+Added: Asset Market Submarket/BBD Square Footage
+Added: 150 Fayetteville Raleigh CBD 560,000
+Added: CAPTRUST Towers Raleigh North Hills 300,000
+Added: Capitol Towers Charlotte SouthPark 479,000
+Added: Morrocroft Centre Charlotte SouthPark 291,000
+Added: Galleria 75 Redevelopment Site Atlanta Cumberland/Galleria
+Added: Our total purchase price, net of closing credits and cash acquired, was $ 653.6 million, including $ 4.5 million of capitalized acquisition costs.
+Added: The acquisition included the assumption of four secured loans (see Note 6).
+Added: The assets acquired and liabilities assumed were recorded at relative fair value as determined by management, with the assistance of third party specialists, based on information available at the acquisition date and on current assumptions as to future operations.
+Added: The following table sets forth a summary of the relative fair value of the material assets acquired and liabilities assumed relating to this acquisition:
+Added: Amount Recorded at Acquisition
+Added: Real estate assets (1)
+Added: Acquisition-related intangible assets (in deferred financing and leasing costs) (1)
+Added: Right of use asset (in prepaid expenses and other assets) (1)
+Added: Mortgages and notes payable $ ( 403,000 )
+Added: Debt issuance costs (in mortgages and notes payable) (1)
+Added: Acquisition-related intangible liabilities (in accounts payable, accrued expenses and other liabilities) (1)
+Added: Lease liability (in accounts payable, accrued expenses and other liabilities) (1)
+Added: (1) Included in purchase price.
+Added: During 2021, we also acquired various development land parcels in Nashville for an aggregate purchase price, including capitalized acquisition costs, of $ 74.1 million.
+Added: The $ 16.0 million purchase price for one of the acquired parcels is expected to be paid in or prior to second quarter 2023.
+Added: Duri ng 2021, we also acquired our joint venture partner’s 75.0 % interest in our Highwoods DLF Forum, LLC joint venture (the “Forum”), which owned five buildings in Raleigh encompassing 636,000 rentable square feet, for a purchase price of $ 131.3 million.
+Added: We previously accounted for our 25.0 % interest in this joint venture using the equity method of accounting.
+Added: The assets and liabilities of the joint venture are now wholly owned and we have determined the acquisition constitutes an asset purchase.
+Added: As such, because the Forum is not a variable interest entity, we allocated our previously held equity interest at historical cost along with the consideration paid and acquisition costs to the assets acquired and liabilities assumed.
+Added: The assets acquired and liabilities assumed were recorded at relative fair value as determined by management, with the assistance of third party specialists, based on information available at the acquisition date and on current assumptions as to future operations.
+Added: During 2020, we acquired two development land parcels totaling less than one acre in Raleigh and Nashville for an aggregate purchase price of $ 8.5 million, including the issuance of 118,592 Common Units and capitalized acquisition costs.
During 2019, we acquired a building in the central business district of Charlotte, which delivered in 2019 and encompasses 841,000 rentable square feet, for a net purchase price of $ 399.1 million.
The assets acquired and liabilities assumed were recorded at relative fair value as determined by management, with the assistance of third party specialists, based on information available at the acquisition date and on current assumptions as to future operations.
−Removed: During 2019, we also acquired four development parcels totaling approximately 10 acres in Raleigh, Richmond and Pittsburgh for an aggregate purchase price, including capitalized acquisition costs, of $ 12.4 million.
−Removed: During 2018, we acquired two development parcels totaling approximately nine acres in Nashville for an aggregate purchase price, including capitalized acquisition costs, of $ 50.6 million.
−Removed: During 2020, we sold a total of 52 buildings, encompassing 4,489,000 rentable square feet, in Greensboro and Memphis and various land parcels for an aggregate sale price of $ 494.2 million (before closing credits to buyer of $ 5.7 million) and recorded aggregate gains on disposition of property of $ 215.5 million.
+Added: During 2019, we also acquired four development land parcels totaling approximately 10 acres in Raleigh, Richmond and Pittsburgh for an aggregate purchase price, including capitalized acquisition costs, of $ 12.4 million.
+Added: During 2021, we sold a total of 13 office buildings and various land parcels in Atlanta, Memphis, Raleigh, Richmond and Tampa for an aggregate sale price of $ 384.6 million (before closing credits to buyer of $ 6.9 million) and recorded aggregate gains on disposition of property of $ 172.8 million.
+Added: During 2020, we sold a total of 52 buildings in Greensboro and Memphis and various land parcels for an aggregate sale price of $ 494.2 million (before closing credits to buyer of $ 5.7 million) and recorded aggregate gains on disposition of property of $ 215.5 million.
During 2020, we also recognized $ 0.4 million of gain related to the satisfaction of a performance obligation as part of a 2016 land sale.
During 2019, we sold a total of six buildings and various land parcels for an aggregate sale price of $ 136.4 million and recorded aggregate gains on disposition of property of $ 39.5 million.
−Removed: During 2018, we sold a total of three buildings and various land parcels for an aggregate sale price of $ 90.6 million and recorded aggregate gains on disposition of property of $ 37.6 million.
During 2020, we recorded an impairment of real estate assets of $ 1.8 million, which resulted from a change in market-based inputs and our assumptions about the use of the assets.
During 2019, we recorded aggregate impairments of real estate assets of $ 5.8 million as a result of shortened hold periods from classifying all of our assets in Greensboro and Memphis as non-core and changes in market-based inputs and our assumptions about the use of the assets.
−Removed: During 2018, we recorded an impairment of real estate assets of $ 0.4 million, which resulted from a change in market-based inputs and our assumptions about the use of the assets.
Investments in and Advances to Affiliates
1 unchanged sentence
We have equity interests of up to 50.0 % in various joint ventures with unrelated third parties that are accounted for using the equity method of accounting because we have the ability to exercise significant influence over the operating and financial policies of the joint venture investment.
−Removed: The difference between the cost of these investments and the net book value of the underlying net assets was $ 0.6 million and $ 0.7 million at December 31, 2020 and 2019, respectively.
+Added: The difference between the cost of these investments and the net book value of the underlying net assets was $ 0.6 million at both December 31, 2021 and 2020.
The following table sets forth our ownership in unconsolidated affiliates at December 31, 2021:
1 unchanged sentence
Plaza Colonnade, Tenant-in-Common Kansas City 50.0 %
+Added: Brand/HRLP 2827 Peachtree LLC Atlanta 50.0 %
Kessinger/Hunter & Company, LC Kansas City 26.5 %
−Removed: Highwoods DLF Forum, LLC (1)
−Removed: Raleigh 25.0 %
−Removed: (1) We acquired our joint venture partner’s 75.0 % interest in our Highwoods DLF Forum, LLC joint venture (the “Forum”) in the first quarter of 2021.
+Added: - Brand/HRLP 2827 Peachtree LLC (“2827 Peachtree joint venture”)
+Added: During the fourth quarter of 2021, we and Brand Properties, LLC (“Brand”) formed the 2827 Peachtree joint venture to construct 2827 Peachtree, a 135,000 square foot, multi-customer office building located in Atlanta’s Buckhead submarket.
+Added: 2827 Peachtree has an anticipated total investment of $ 79.0 million.
+Added: Construction of 2827 Peachtree began in the first quarter of 2022 with a scheduled completion date in the third quarter of 2023.
+Added: At closing, we agreed to contribute cash of $ 13.3 million ($ 6.1 million of which was funded as of December 31, 2021) in exchange for a 50.0 % interest in the 2827 Peachtree joint venture and Brand contributed land valued at $ 7.7 million and agreed to contribute cash of $ 5.6 million in exchange for the remaining 50.0 % interest.
+Added: We also committed to provide a $ 49.6 million interest-only secured construction loan to the 2827 Peachtree joint venture that is scheduled to mature in December 2024 with an option to extend for one year .
+Added: The loan bears interest at LIBOR plus 300 basis points.
+Added: As of December 31, 2021, no amounts under the loan have been funded.
+Added: We determined that we have a variable interest in the 2827 Peachtree joint venture primarily because the entity was designed to pass along interest rate risk, equity price risk and operation risk to us as both a debt and equity holder and Brand as an equity holder.
+Added: The 2827 Peachtree joint venture was further determined to be a variable interest entity as it requires additional subordinated financial support in the form of a loan because the initial equity investment provided by us and Brand is not sufficient to finance its planned investments and operations.
+Added: However, since we are the not the managing member or lead developer, we concluded we do not have the power to direct matters that most significantly impact the activities of the entity and therefore, do not qualify as the primary beneficiary.
+Added: Accordingly, the entity was not consolidated.
+Added: At December 31, 2021, our risk of loss with respect to this arrangement was limited to the carrying value of the investment balance of $ 6.1 million as no amounts were outstanding under the loan.
+Added: The assets of the 2827 Peachtree joint venture can be used only to settle obligations of the joint venture and its creditors have no recourse to our wholly owned assets.
+Added: - Other Activities
We receive development, management and leasing fees for services provided to certain of our joint ventures.
1 unchanged sentence
During the years ended December 31, 2021, 2020 and 2019, we recognized $ 1.6 million, $ 1.0 million and $ 0.5 million, respectively, of development/construction, management and leasing fees from our unconsolidated joint ventures.
−Removed: At December 31, 2020 and 2019, we had receivables of $ 0.2 million and $ 0.1 million, respectively, related to these fees in accounts receivable.
−Removed: Consolidated Variable Interest Entity
+Added: At December 31, 2020, we had receivables of $ 0.2 million related to these fees in accounts receivable.
+Added: Consolidated Variable Interest Entities
In 2019, we and The Bromley Companies formed a joint venture (the “Midtown One joint venture”) to construct Midtown West, a 150,000 square foot, multi-customer office building located in the mixed-use Midtown Tampa project in Tampa’s Westshore submarket.
Midtown West has an anticipated total investment of $ 71.3 million.
−Removed: Construction of Midtown West began in the third quarter of 2019 with a scheduled completion date in the second quarter of 2021.
+Added: Construction of Midtown West
+Added: began in the third quarter of 2019 and the building was placed in service in the second quarter of 2021.
At closing, we agreed to contribute cash of $ 20.0 million, which has been fully funded, in exchange for an 80.0 % interest in the Midtown One joint venture and The Bromley Companies contributed land valued at $ 5.0 million in exchange for the remaining 20.0 % interest.
7 unchanged sentences
The following table sets forth the assets and liabilities of the Midtown One joint venture included on our Consolidated Balance Sheets:
+Added: Net real estate assets $ 53,191 $ —
Development in-process $ — $ 46,873
−Removed: Deferred leasing costs $ 196
+Added: Cash and cash equivalents $ 389 $ —
+Added: Accrued straight-line rents receivable $ 121 $ —
+Added: Deferred leasing costs, net $ 1,519 $ 196
Prepaid expenses and other assets $ 163 $ 75
9 unchanged sentences
If the entity’s underlying assets are worth less than the underlying liabilities on the date of such liquidation, we would have no obligation to remit any consideration to the noncontrolling interest holder.
+Added: The assets of Markel can be used only to settle obligations of the joint venture and its creditors have no recourse to our wholly owned assets.
+Added: During 2021, Markel sold land in Richmond for a sale price of $ 3.0 million and recorded gain on disposition of property of $ 1.3 million.
Intangible Assets and Below Market Lease Liabilities
34 unchanged sentences
Weighted average remaining amortization periods as of December 31, 2021 (in years) 8.2 8.5 7.6 8.3
+Added: The following table sets forth the intangible assets acquired and below market lease liabilities assumed as a result of the acquisition of real estate assets from PAC and our joint venture partner's 75.0 % interest in the Forum:
+Added: Acquisition-Related Intangible Assets (amortized in Rental and Other Revenues) Acquisition-Related Intangible Assets (amortized in Depreciation and Amortization) Acquisition-Related Below Market Lease Liabilities (amortized in Rental and Other Revenues)
+Added: Amount recorded at acquisition $ 13,824 $ 84,298 $ ( 8,535 )
+Added: Weighted average remaining amortization periods as of December 31, 2021 (in years) 7.1 7.1 8.1
Mortgages and Notes Payable
1 unchanged sentence
Secured indebtedness (1) :
−Removed: 4.00% mortgage loan due 2029 (1)
+Added: 4.27% (3.61% effective rate) mortgage loan due 2028 (2)
$ 115,731 $ —
+Added: 4.00% mortgage loan due 2029 91,318 93,350
+Added: 3.61% (3.19% effective rate) mortgage loan due 2029 (3)
+Added: 3.40% (3.50% effective rate) mortgage loan due 2033 (4)
+Added: 4.60% (3.73% effective rate) mortgage loan due 2037 (5)
491,942 93,350
1 unchanged sentence
3.20% (3.363% effective rate) notes due 2021 (6)
−Removed: 149,901 299,369
3.625% (3.752% effective rate) notes due 2023 (7)
9 unchanged sentences
2.600% (2.645% effective rate) notes due 2031 (12)
−Removed: Variable rate term loan due 2022 (9)
+Added: 398,579 398,423
Variable rate term loan due 2022 (13)
4 unchanged sentences
Total mortgages and notes payable, net $ 2,788,915 $ 2,470,021
−Removed: (1) Our secured mortgage loan was collateralized by real estate assets with an undepreciated book value of $ 147.9 million at December 31, 2020.
+Added: (1) Our secured mortgage loans were collateralized by real estate assets with an undepreciated book value of $ 727.8 million at December 31, 2021.
We paid down $ 3.8 million of secured loan balances through principal amortization during 2021.
+Added: (2) Net of unamortized fair market value premium of $ 3.9 million as of December 31, 2021.
+Added: (3) Net of unamortized fair market value premium of $ 2.3 million as of December 31, 2021.
+Added: (4) Net of unamortized fair market value discount of $ 0.6 million as of December 31, 2021.
+Added: (5) Net of unamortized fair market value premium of $ 10.0 million as of December 31, 2021.
+Added: (6) Net of unamortized original issuance discount of $ 0.1 million as of December 31, 2020.
+Added: This debt was repaid in 2021.
(7) Net of unamortized original issuance discount of $ 0.3 million and $ 0.5 million as of December 31, 2021 and 2020, respectively.
4 unchanged sentences
(12) Net of unamortized original issuance discount of $ 1.4 million and $ 1.6 million as of December 31, 2021 and 2020, respectively.
−Removed: (8) Net of unamortized original issuance discount of $ 1.6 million as of December 31, 2020.
−Removed: (9) This debt was repaid in 2020.
(13) As more fully described in Note 7, we entered into floating-to-fixed interest rate swaps that effectively fix LIBOR for $50.0 million of this loan through January 2022.
1 unchanged sentence
The interest rate on the remaining $150.0 million was 1.20 % at December 31, 2021.
+Added: (14) The interest rate was 1.00 % at December 31, 2021.
The following table sets forth scheduled future principal payments, including amortization, due on our mortgages and notes payable at December 31, 2021:
−Removed: Years Ending December 31, Principal Amount
+Added: Years Ending December 31, Amount
2022 $ 206,524
1 unchanged sentence
Less-unamortized debt issuance costs ( 15,207 )
−Removed: (1) Represents amortization of discounts in excess of principal payments due.
−Removed: Our $ 600.0 million unsecured revolving credit facility is scheduled to mature in January 2022 and includes an accordion feature that allows for an additional $ 400.0 million of borrowing capacity subject to additional lender commitments.
+Added: During 2021, we entered into a new $ 750.0 million unsecured revolving credit facility, which replaced our previously existing $ 600.0 million revolving credit facility and includes an accordion feature that allows for an additional $ 550.0 million of borrowing capacity subject to additional lender commitments.
+Added: Our new revolving credit facility is scheduled to mature in March 2025.
Assuming no defaults have occurred, we have an option to extend the maturity for two additional six -month periods.
−Removed: The interest rate at our current credit ratings is LIBOR plus 100 basis points and the annual facility fee is 20 basis points.
−Removed: There were no amounts outstanding under our revolving credit facility at both December 31, 2020 and January 29, 2021.
+Added: The current interest rate on the new facility at our existing credit ratings is LIBOR plus 90 basis points and the annual facility fee is 20 basis points.
+Added: The interest rate and facility fee are based on the higher of the publicly announced ratings from Moody’s Investors Service or Standard & Poor’s Ratings Services.
+Added: The financial and other covenants under the new facility are substantially similar to our previous credit facility.
+Added: We incurred $ 4.8 million of debt issuance costs, which are being amortized along with certain existing unamortized debt issuance costs over the remaining term of our new revolving credit facility.
+Added: We recorded $ 0.1 million of loss on debt extinguishment.
+Added: There was $ 70.0 million outstanding under our new revolving credit facility at both December 31, 2021 and January 28, 2022.
At both December 31, 2021 and January 28, 2022, we had $ 0.1 million of outstanding letters of credit, which reduces the availability on our revolving credit facility.
As a result, the unused capacity of our revolving credit facility at both December 31, 2021 and January 28, 2022 was $ 679.9 million.
+Added: During 2021, in conjunction with the acquisition of real estate assets from PAC, we assumed four secured mortgage loans recorded at fair value of $ 403 million in the aggregate, with a weighted average effective interest rate of 3.54 % and a weighted average maturity of 10.7 years.
+Added: We incurred $ 3.5 million of debt issuance costs related to these assumptions, which will be amortized over the remaining terms of the loans.
+Added: During the third quarter of 2021, we also obtained a $ 200.0 million, six -month unsecured bridge facility.
+Added: The bridge facility was originally scheduled to mature in January 2022.
+Added: The bridge facility bore interest at LIBOR plus 85 basis points, had a commitment fee of 20 basis points and contained financial and other covenants that are similar to the covenants under our $750 million unsecured revolving credit facility.
+Added: We incurred $ 1.0 million of debt issuance costs related to this bridge facility which were being amortized over the six -month term.
+Added: As of December 31, 2021, this bridge facility was prepaid in full without penalty.
+Added: We recorded $ 0.2 million of loss on debt extinguishment related to this prepayment.
+Added: During 2021, we prepaid without penalty the remaining $ 150.0 million principal amount of 3.20 % unsecured notes that was scheduled to mature in June 2021.
+Added: We recorded $ 0.1 million of loss on debt extinguishment related to this prepayment.
During 2020, the Operating Partnership issued $ 400.0 million aggregate principal amount of 2.600 % notes due February 2031, less original issuance discount of $ 1.6 million.
5 unchanged sentences
(2) to prepay without penalty our $ 100.0 million unsecured bank term loan that was scheduled to mature in January 2022 and which bore interest at LIBOR plus 110 basis points;
−Removed: and (3) for general corporate purposes.
+Added: and (3) for general corporate
We recorded $ 3.7 million of aggregate losses on debt extinguishment related to the repurchase of the 3.20% notes and the term loan prepayment.
13 unchanged sentences
The term loan was scheduled to mature in January 2022 and bore interest at LIBOR plus 110 basis points.
−Removed: During 2018, we paid off at maturity $ 200.0 million principal amount of 7.5 % unsecured notes.
−Removed: During 2018, the Operating Partnership issued $ 350.0 million aggregate principal amount of 4.125 % notes due March 2028, less original issuance discount of $ 4.1 million.
−Removed: These notes were priced to yield 4.271 %.
−Removed: Underwriting fees and other expenses were incurred that aggregated $ 2.9 million;
−Removed: these costs were deferred and will be amortized over the term of the notes.
+Added: We are currently in compliance with financial covenants with respect to our consolidated debt.
Our revolving credit facility and bank term loans require us to comply with customary operating covenants and various financial requirements.
1 unchanged sentence
In addition, certain of our unsecured debt agreements contain cross-default provisions giving the unsecured lenders the right to declare a default if we are in default under more than $ 35.0 million with respect to other loans in some circumstances.
−Removed: We are currently in compliance with financial covenants with respect to our consolidated debt.
−Removed: The Operating Partnership has $ 149.9 million carrying amount of 2021 notes outstanding, $ 249.5 million carrying amount of 2023 notes outstanding, $ 297.5 million carrying amount of 2027 notes outstanding, $ 347.0 million carrying amount of 2028 notes outstanding, $ 349.2 million carrying amount of 2029 notes outstanding, $ 399.1 million carrying amount of 2030 notes outstanding and $ 398.4 million carrying amount of 2031 notes outstanding.
+Added: The Operating Partnership has $ 249.7 million carrying amount of 2023 notes outstanding, $ 297.9 million carrying amount of 2027 notes outstanding, $ 347.4 million carrying amount of 2028 notes outstanding, $ 349.3 million carrying amount of 2029 notes outstanding, $ 399.2 million carrying amount of 2030 notes outstanding and $ 398.6 million carrying amount of 2031 notes outstanding.
The indenture that governs these outstanding notes requires us to comply with customary operating covenants and various financial ratios.
1 unchanged sentence
We have considered our short-term liquidity needs within one year from February 8, 2022 (the date of issuance of the annual financial statements) and the adequacy of our estimated cash flows from operating activities and other available financing sources to meet these needs.
−Removed: In particular, we have considered our scheduled debt maturities during such one-year period, including the remaining $ 150.0 million principal amount of unsecured notes that are scheduled to mature on June 15, 2021.
−Removed: We intend to exercise our right to redeem the remaining 3.20 % notes at par on April 15, 2021.
+Added: In particular, we have considered our scheduled debt maturities during such one-year period, including the $ 200.0 million unsecured bank term loan that is scheduled to mature in November 2022 and the $ 250.0 million principal amount of unsecured notes that are scheduled to mature in January 2023.
We have concluded it is probable we will meet these short-term liquidity requirements through a combination of the following:
16 unchanged sentences
The unrealized loss of $ 5.1 million in accumulated other comprehensive income/(loss) will be reclassified to interest expense as interest payments are made on the debt.
−Removed: We previously entered into $ 150.0 million notional amount of forward-starting swaps that effectively locked the underlying 10 -year treasury rate at 2.44 % with respect to a planned issuance of debt securities by the Operating Partnership.
−Removed: Upon issuance of the $ 350.0 million aggregate principal amount of 4.125 % notes due March 2028 during 2018, we terminated the forward-starting swaps and received cash upon settlement.
−Removed: The unrealized gain of $ 7.0 million in accumulated other comprehensive income/(loss) will be reclassified to interest expense as interest payments are made on the debt and a gain of $ 0.2 million of hedge ineffectiveness was recognized in interest expense.
We previously entered into floating-to-fixed interest rate swaps through January 2022 with respect to an aggregate of $ 50.0 million LIBOR-based borrowings.
These swaps effectively fix the underlying one -month LIBOR rate at a weighted average rate of 1.693 %.
+Added: As of January 28, 2022, these interest rate swaps have expired.
We also had floating-to-fixed interest rate swaps with respect to an aggregate of $ 225.0 million LIBOR-based borrowings.
6 unchanged sentences
Amounts reported in accumulated other comprehensive income/(loss) related to derivatives will be reclassified to interest expense as interest payments are made on our debt.
−Removed: During 2021, we estimate that $ 0.5 million will be reclassified as a net increase to interest expense.
+Added: During 2022, we estimate that $ 0.2 million will be reclassified as a net decrease to interest expense.
The following table sets forth the fair value of our derivatives:
5 unchanged sentences
Derivatives Designated as Cash Flow Hedges:
−Removed: Amount of unrealized gains/(losses) recognized in accumulated other comprehensive income/(loss) on derivatives:
+Added: Amount of unrealized losses recognized in accumulated other comprehensive income/(loss) on derivatives:
Interest rate swaps $ ( 19 ) $ ( 1,238 ) $ ( 9,134 )
6 unchanged sentences
Contingent Consideration
−Removed: We had $ 0.8 million and $ 5.3 million of contingent consideration related to certain parcels of acquired development land at December 31, 2020 and 2019, respectively.
−Removed: The contingent consideration for each is payable in cash to a third party if and to the extent future development milestones as outlined in the purchase agreements are met.
+Added: We had $ 0.8 million of contingent consideration related to a parcel of acquired development land at both December 31, 2021 and 2020.
+Added: The contingent consideration is payable in cash to a third party if and to the extent future development milestones as outlined in the purchase agreements are met.
Environmental Matters
Substantially all of our in-service and development properties have been subjected to Phase I environmental assessments and, in certain instances, Phase II environmental assessments.
−Removed: Such assessments and/or updates have not revealed, nor are we aware of, any environmental liability that we believe would have a material adverse effect on our Consolidated Financial Statements.
+Added: Such assessments and/or updates have not revealed, nor are we aware of, any environmental liability that we believe would have a material adverse effect in our Consolidated Financial Statements.
Litigation, Claims and Assessments
4 unchanged sentences
Based on the current expected outcome of such matters, none of these proceedings, claims or assessments is expected to have a material effect on our business, financial condition, results of operations or cash flows.
−Removed: Since early March 2020, efforts to slow the spread of the COVID-19 virus have had a significant impact on the U.S.
−Removed: We continue to follow the policies described in Notes 1 and 2, including those related to impairments of real estate assets and investments in unconsolidated affiliates, leases and estimates of credit losses on operating lease receivables.
−Removed: While the results of our current analyses did not result in any material adjustments to amounts as of and for the year ended December 31, 2020, circumstances related to the COVID-19 pandemic may result in recording impairments, lease modifications and credit losses in future periods.
+Added: Since early March 2020, the COVID-19 pandemic had a significant impact on the U.S.
+Added: We continue to follow the policies described in Note 1 , including those related to impairments of real estate assets and investments in unconsolidated affiliates, leases and estimates of credit losses on operating lease receivables.
+Added: While the results of our current analyses did not result in any material adjustments to amounts as of and for the years ended December 31, 2021 and 2020, respectively, circumstances related to the COVID-19 pandemic may result in recording impairments, lease modifications and credit losses in future periods.
Noncontrolling Interests
Noncontrolling Interests in Consolidated Affiliates
−Removed: At December 31, 2020, our noncontrolling interests in consolidated affiliates relate to our joint venture partners’ 50.0 % interest in office properties in Richmond and 20.0 % interest in an office development property in Tampa.
+Added: At December 31, 2021, our noncontrolling interests in consolidated affiliates relate to our joint venture partners’ 50.0 % interest in office properties in Richmond and 20.0 % interest in the Midtown One joint venture.
Our joint venture partners are unrelated third parties.
70 unchanged sentences
The impairment resulted from a change in our assumptions about the use of the assets and was calculated using brokers’ opinions of value, letters of intent and comparable sales as observable inputs were not available.
−Removed: The Level 3 impaired real estate assets measured at a fair value of $ 7.6 million in the third quarter of 2019 included an office building and land held for development.
−Removed: The aggregate impairments resulted from a change in our assumptions about the use of the assets and were calculated using brokers’ opinions of value and comparable sales as observable inputs were not available.
−Removed: The Level 3 impaired real estate assets measured at a fair value of $ 0.7 million in the second quarter of 2019 included land held for development.
−Removed: The impairment resulted from a change in our assumptions about the use of the assets and was calculated using the terms of definitive sales contracts as observable inputs were not available.
Common Stock Issuances
+Added: During 2020, we entered into separate equity distribution agreements in which the Company may offer and sell up to $ 300.0 million in aggregate gross sales price of shares of Common Stock.
+Added: During 2021, the Company issued 456,273 shares of Common Stock under its equity distribution agreements at an average gross sales price of $ 46.23 per share and received net proceeds, after sales commissions, of $ 20.8 million.
At December 31, 2021, the Company had 95.1 million remaining shares of Common Stock authorized to be issued under its charter.
10 unchanged sentences
Preferred Stock
−Removed: The following table sets forth the Company’s Preferred Stock:
+Added: The following table sets forth the Company’s outstanding Preferred Stock:
Issue Date Number of Shares Outstanding Carrying Value Liquidation Preference Per Share Optional Redemption Date Annual Dividends Payable Per Share
23 unchanged sentences
Preferred Units
−Removed: The following table sets forth the Operating Partnership’s Preferred Units:
+Added: The following table sets forth the Operating Partnership’s outstanding Preferred Units:
Issue Date Number of
11 unchanged sentences
Officers of the Company participate in an annual non-equity incentive program pursuant to which they are eligible to earn cash payments based on a percentage of their annual base salary in effect for December of the applicable year.
−Removed: Under this component of our executive compensation program, officers are eligible to earn additional cash compensation to the extent specific performance-based metrics are achieved during the most recently completed year.
+Added: Under this component of our executive compensation program, officers are eligible to earn additional cash compensation generally to the extent specific performance-based metrics are achieved during the most recently completed year.
The position held by each officer has a target annual incentive percentage that ranges from 25 % to 130 % of base salary.
1 unchanged sentence
The percentage amount an officer may earn under the annual non-equity incentive plan is the product of the target annual incentive percentage times an “actual performance factor,” which can range from zero to 200 %.
−Removed: The actual performance factor depends upon the relationship between actual performance in specific areas at each of our divisions and predetermined goals.
−Removed: For corporate officers, the actual performance factor is based on the goals and criteria applied to the Company’s performance as a whole.
−Removed: For officers who oversee our divisions, the actual performance factor is based on the goals and criteria applied partly to that division’s performance and partly to the Company’s performance overall.
Amounts under our annual non-equity incentive plan are accrued and expensed in the year earned, but are typically paid early in the following year.
1 unchanged sentence
Incentive eligibility ranges from 5 % to 30 % of annual base salary.
−Removed: The actual incentive payment is determined by a mix of the Company’s overall performance, the performance of any applicable division and the individual’s performance during each year.
These amounts are also accrued and expensed in the year earned, but are typically paid early in the following year.
25 unchanged sentences
Exercised ( 9,026 ) 39.53
+Added: Forfeited ( 2,590 ) 48.79
Stock options outstanding at December 31, 2019 584,902 45.75
3 unchanged sentences
Exercised ( 25,306 ) 43.76
−Removed: Forfeited ( 5,366 ) 50.82
Stock options outstanding at December 31, 2021 (1)
512,067 $ 46.18
−Removed: (1) The outstanding options at December 31, 2020 had a weighted average remaining life of 5.0 years.
(1) The Company had 512,067 options exercisable at December 31, 2021 with a weighted average exercise price of $ 46.18 , weighted average remaining life of 4.0 years and intrinsic value of $ 0.6 million.
14 unchanged sentences
103,590 45.98
+Added: ( 73,036 ) 45.79
Forfeited ( 3,642 ) 46.07
2 unchanged sentences
( 88,326 ) 45.86
−Removed: ( 73,036 ) 45.79
Forfeited ( 3,751 ) 45.78
2 unchanged sentences
103,120 39.99
+Added: ( 89,264 ) 45.90
Forfeited ( 3,327 ) 43.13
7 unchanged sentences
For total return-based restricted stock issued prior to 2020, notwithstanding the Company’s absolute total return, if the Company’s total return exceeds 100 % of the average peer group total return index, at least 75 % of total return-based restricted stock issued will vest at the end of the applicable period.
−Removed: This amount was increased from 75% to 100 % for total return-based restricted stock issued in 2020.
+Added: This amount was increased from 75% to 100 % for total return-based restricted stock issued in 2021 and 2020.
The weighted average grant date fair value of such shares of total return-based restricted stock issued in 2021, 2020 and 2019 was determined to be $ 36.41 , $ 38.31 and $ 39.42 , respectively, and is amortized over the respective three-year period or the service period, if shorter, for employees who are or will become eligible under the Company’s retirement plan.
19 unchanged sentences
Awarded and issued (1)
−Removed: ( 45,901 ) 43.68
Forfeited (3)
2 unchanged sentences
Awarded and issued (1)
+Added: ( 55,452 ) 43.01
Forfeited (3)
28 unchanged sentences
Mark-to-market adjustment to deferred compensation (in general and administrative expenses)
−Removed: 228 496 ( 182 )
−Removed: Distributions from deferred compensation plans — — ( 357 )
Total deferred compensation liability $ 2,866 $ 2,573 $ 2,345
3 unchanged sentences
In the years ended December 31, 2021, 2020 and 2019, the Company issued 38,460 , 47,208 and 38,618 shares, respectively, of Common Stock under the ESPP.
−Removed: The 15 % discount on newly issued shares, which is taxable income to the participants and is recorded by us as additional compensation expense, aggregated $ 0.3 million in each of the years ended December 31, 2020, 2019 and 2018.
+Added: The 15 % discount on newly issued shares, which is taxable income to the participants and is recorded by us as additional compensation expense, aggregated $ 0.2 million, $ 0.3 million and $ 0.3 million in the years ended December 31, 2021, 2020 and 2019, respectively.
Generally, shares purchased under the ESPP must be held at least one year.
6 unchanged sentences
Amortization of cash flow hedges (1)
−Removed: 247 ( 1,250 )
Total accumulated other comprehensive loss $ ( 973 ) $ ( 1,462 )
4 unchanged sentences
Buildings and tenant improvements — 12,238
+Added: Land held for development 3,482 —
Less-accumulated depreciation — ( 3,577 )
Net real estate assets 3,482 11,273
−Removed: Accrued straight-line rents receivable — 2,073
Deferred leasing costs, net — 87
+Added: Prepaid expenses and other assets 36 —
Real estate and other assets, net, held for sale $ 3,518 $ 11,360
77 unchanged sentences
The following tables summarize the rental and other revenues and net operating income, the primary industry property-level performance metric used by our chief operating decision maker and which is defined as rental and other revenues less rental property and other expenses, for each of our reportable segments.
−Removed: Our segment information as of December 31, 2019 and for the years ended December 31, 2019 and 2018 have been retrospectively revised from previously reported amounts to reflect a change in our reportable segments as a result of recent dispositions.
+Added: Our segment information as of and for the year ended December 31, 2019 has been retrospectively revised from previously reported amounts to reflect a change in our reportable segments as a result of recent dispositions.
Year Ended December 31,
45 unchanged sentences
Total Assets $ 5,695,138 $ 5,209,417
−Removed: Quarterly Financial Data (Unaudited)
−Removed: The following tables set forth quarterly financial information of the Company:
−Removed: Year Ended December 31, 2020
−Removed: Quarter Second
−Removed: Quarter Third
−Removed: Quarter Fourth
−Removed: Quarter Total
−Removed: Rental and other revenues $ 192,800 $ 183,153 $ 181,043 $ 179,904 $ 736,900
−Removed: Net income 191,340 38,956 42,331 85,287 357,914
−Removed: Net (income) attributable to noncontrolling interests in the Operating Partnership
−Removed: ( 4,960 ) ( 1,017 ) ( 1,107 ) ( 2,254 ) ( 9,338 )
−Removed: Net (income) attributable to noncontrolling interests in consolidated affiliates
−Removed: ( 285 ) ( 289 ) ( 298 ) ( 302 ) ( 1,174 )
−Removed: Dividends on Preferred Stock ( 622 ) ( 622 ) ( 622 ) ( 622 ) ( 2,488 )
−Removed: Net income available for common stockholders $ 185,473 $ 37,028 $ 40,304 $ 82,109 $ 344,914
−Removed: Earnings per Common Share – basic:
−Removed: Net income available for common stockholders $ 1.79 $ 0.36 $ 0.39 $ 0.79 $ 3.32
−Removed: Earnings per Common Share – diluted:
−Removed: Net income available for common stockholders $ 1.79 $ 0.36 $ 0.39 $ 0.79 $ 3.32
−Removed: Year Ended December 31, 2019
−Removed: Quarter Second
−Removed: Quarter Third
−Removed: Quarter Fourth
−Removed: Quarter Total
−Removed: Rental and other revenues $ 172,363 $ 184,070 $ 187,475 $ 192,071 $ 735,979
−Removed: Net income 8,386 41,394 29,557 62,346 141,683
−Removed: Net (income) attributable to noncontrolling interests in the Operating Partnership
−Removed: ( 193 ) ( 1,044 ) ( 737 ) ( 1,577 ) ( 3,551 )
−Removed: Net (income) attributable to noncontrolling interests in consolidated affiliates
−Removed: ( 316 ) ( 306 ) ( 297 ) ( 295 ) ( 1,214 )
−Removed: Dividends on Preferred Stock ( 622 ) ( 622 ) ( 622 ) ( 622 ) ( 2,488 )
−Removed: Net income available for common stockholders $ 7,255 $ 39,422 $ 27,901 $ 59,852 $ 134,430
−Removed: Earnings per Common Share – basic:
−Removed: Net income available for common stockholders $ 0.07 $ 0.38 $ 0.27 $ 0.58 $ 1.30
−Removed: Earnings per Common Share – diluted:
−Removed: Net income available for common stockholders $ 0.07 $ 0.38 $ 0.27 $ 0.58 $ 1.30
−Removed: The following tables set forth quarterly financial information of the Operating Partnership:
−Removed: Year Ended December 31, 2020
−Removed: Quarter Second
−Removed: Quarter Third
−Removed: Quarter Fourth
−Removed: Quarter Total
−Removed: Rental and other revenues $ 192,800 $ 183,153 $ 181,043 $ 179,904 $ 736,900
−Removed: Net income 191,340 38,956 42,331 85,287 357,914
−Removed: Net (income) attributable to noncontrolling interests in consolidated affiliates
−Removed: ( 285 ) ( 289 ) ( 298 ) ( 302 ) ( 1,174 )
−Removed: Distributions on Preferred Units ( 622 ) ( 622 ) ( 622 ) ( 622 ) ( 2,488 )
−Removed: Net income available for common unitholders $ 190,433 $ 38,045 $ 41,411 $ 84,363 $ 354,252
−Removed: Earnings per Common Unit – basic:
−Removed: Net income available for common unitholders $ 1.79 $ 0.36 $ 0.39 $ 0.79 $ 3.33
−Removed: Earnings per Common Unit – diluted:
−Removed: Net income available for common unitholders $ 1.79 $ 0.36 $ 0.39 $ 0.79 $ 3.33
−Removed: Year Ended December 31, 2019
−Removed: Quarter Second
−Removed: Quarter Third
−Removed: Quarter Fourth
−Removed: Quarter Total
−Removed: Rental and other revenues $ 172,363 $ 184,070 $ 187,475 $ 192,071 $ 735,979
−Removed: Net income 8,386 41,394 29,557 62,346 141,683
−Removed: Net (income) attributable to noncontrolling interests in consolidated affiliates
−Removed: ( 316 ) ( 306 ) ( 297 ) ( 295 ) ( 1,214 )
−Removed: Distributions on Preferred Units ( 622 ) ( 622 ) ( 622 ) ( 622 ) ( 2,488 )
−Removed: Net income available for common unitholders $ 7,448 $ 40,466 $ 28,638 $ 61,429 $ 137,981
−Removed: Earnings per Common Unit – basic:
−Removed: Net income available for common unitholders $ 0.07 $ 0.38 $ 0.27 $ 0.58 $ 1.30
−Removed: Earnings per Common Unit – diluted:
−Removed: Net income available for common unitholders $ 0.07 $ 0.38 $ 0.27 $ 0.58 $ 1.30
Subsequent Events
−Removed: On January 15, 2021, we sold a building in Atlanta for a sale price of $ 30.7 million and expect to record a gain on disposition of property of $ 18.9 million.
−Removed: On January 21, 2021, we acquired our joint venture partner’s 75.0 % interest in the Forum, which owned five buildings in Raleigh encompassing 636,000 rentable square feet, for a purchase price of $ 131.3 million.
−Removed: We previously accounted for our 25.0 % interest in this joint venture using the equity method of accounting.
−Removed: The assets and liabilities of the joint venture are now wholly owned and we have determined the acquisition constitutes an asset purchase.
−Removed: As such, because the Forum is not a variable interest entity, we expect to allocate our previously held equity interest at historical cost along with the consideration paid and acquisition costs to the assets acquired and liabilities assumed.
On February 1, 2022, the Company declared a cash dividend of $ 0.50 per share of Common Stock, which is payable on March 15, 2022 to stockholders of record as of February 21, 2022.
−Removed: See also Note 8 for information regarding the potential impact of the COVID-19 pandemic in future periods.
−Removed: The severity and duration of the COVID-19 pandemic and the resulting economic recession and the future demand for office space over the long-term are difficult to predict and could materially and adversely impact or disrupt our financial condition, results of operations, cash flows and performance.
HIGHWOODS PROPERTIES, INC.
32 unchanged sentences
Subsequent to
−Removed: Acquisition Gross Value at Close of Period
+Added: Acquisition Gross Value at Close of Period Life on
Description Property
4 unchanged sentences
Depreciation Date of
−Removed: Construction Life on
1700 Century Circle Office $ — $ 2,482 $ 2 $ 1,431 $ 2 $ 3,913 $ 3,915 $ 2,110 1983 5-40 yrs.
10 unchanged sentences
2800 Century Parkway Office — 20,449 — 11,852 — 32,301 32,301 19,130 1983 5-40 yrs.
−Removed: 50 Glenlake Office 2,500 20,006 — 4,308 2,500 24,314 26,814 13,172 1997 5-40 yrs.
Century Plaza I Office 1,290 8,567 — 4,746 1,290 13,313 14,603 7,206 1981 5-40 yrs.
Century Plaza II Office 1,380 7,733 — 4,119 1,380 11,852 13,232 5,904 1984 5-40 yrs.
−Removed: 5405 Windward Parkway Office 3,342 32,111 — 19,729 3,342 51,840 55,182 26,543 1998 5-40 yrs.
Riverpoint - Land Industrial 7,250 — ( 4,649 ) 718 2,601 718 3,319 203 N/A 5-40 yrs.
9 unchanged sentences
Monarch Plaza Office 27,678 88,962 — 12,410 27,678 101,372 129,050 19,148 1983 5-40 yrs.
+Added: Galleria 75 - Land Office — — 19,740 — 19,740 — 19,740 — N/A N/A
Charlotte, NC
Bank of America Tower Office 29,273 354,749 — 21,466 29,273 376,215 405,488 23,734 2019 5-40 yrs.
+Added: Morrocroft Office 69,421 — — 19,286 177,199 19,286 177,199 196,485 2,660 1992 5-40 yrs.
+Added: Capitol Towers Office 130,498 — — 9,202 102,179 9,202 102,179 111,381 1,351 2015 5-40 yrs.
HIGHWOODS PROPERTIES, INC.
3 unchanged sentences
Subsequent to
−Removed: Acquisition Gross Value at Close of Period
+Added: Acquisition Gross Value at Close of Period Life on
Description Property
4 unchanged sentences
Depreciation Date of
−Removed: Construction Life on
Nashville, TN
31 unchanged sentences
1100 Broadway - Land Office 29,845 — ( 200 ) — 29,645 — 29,645 — N/A N/A
+Added: Asurion Office — — 33,219 230,569 33,219 230,569 263,788 2,089 2021 5-40 yrs.
Ovation - Land Office 31,063 — 58,168 — 89,231 — 89,231 — N/A N/A
4 unchanged sentences
Subsequent to
−Removed: Acquisition Gross Value at Close of Period
+Added: Acquisition Gross Value at Close of Period Life on
Description Property
4 unchanged sentences
Depreciation Date of
−Removed: Construction Life on
−Removed: Broadway Stem - Land Office — — 6,218 — 6,218 — 6,218 — N/A N/A
+Added: Broadway Stem - Land Office 6,218 — — 526 6,218 526 6,744 4 N/A 5-40 yrs.
+Added: YMCA Site - land Office — — 16,121 — 16,121 — 16,121 — N/A N/A
Capital Plaza Three - Land Office 2,994 — 18 — 3,012 — 3,012 — N/A N/A
−Removed: Eola Park - Land Office 2,027 — — — 2,027 — 2,027 — N/A N/A
The 1800 Eller Drive Building Office — 9,851 — 3,092 — 12,943 12,943 8,809 1983 5-40 yrs.
22 unchanged sentences
2418 Blue Ridge Road Office 462 1,410 — 2,869 462 4,279 4,741 1,881 1988 5-40 yrs.
−Removed: Cape Fear Office 131 1,630 ( 2 ) ( 1,004 ) 129 626 755 382 1979 5-40 yrs.
−Removed: Catawba - Land Office 125 1,635 ( 2 ) ( 1,635 ) 123 — 123 — N/A N/A
2000 CentreGreen Office 1,529 — ( 391 ) 13,299 1,138 13,299 14,437 5,027 2000 5-40 yrs.
1 unchanged sentence
5000 CentreGreen Office 1,291 34,572 — 2,963 1,291 37,535 38,826 6,789 2017 5-40 yrs.
+Added: 3000 CentreGreen Office 1,779 — ( 397 ) 14,714 1,382 14,714 16,096 5,302 2002 5-40 yrs.
+Added: 1000 CentreGreen Office 1,280 — 55 13,969 1,335 13,969 15,304 4,252 2008 5-40 yrs.
+Added: GlenLake - Land Office 13,003 — ( 12,382 ) 114 621 114 735 59 N/A 5-40 yrs.
HIGHWOODS PROPERTIES, INC.
3 unchanged sentences
Subsequent to
−Removed: Acquisition Gross Value at Close of Period
+Added: Acquisition Gross Value at Close of Period Life on
Description Property
4 unchanged sentences
Depreciation Date of
−Removed: Construction Life on
−Removed: 3000 CentreGreen Office 1,779 — ( 397 ) 14,505 1,382 14,505 15,887 4,860 2002 5-40 yrs.
−Removed: 1000 CentreGreen Office 1,280 — 55 12,888 1,335 12,888 14,223 3,736 2008 5-40 yrs.
−Removed: Cottonwood Office 609 3,244 — 437 609 3,681 4,290 2,435 1983 5-40 yrs.
−Removed: GlenLake - Land Office 13,003 — ( 9,924 ) 114 3,079 114 3,193 56 N/A 5-40 yrs.
GlenLake One Office 924 — 1,324 23,185 2,248 23,185 25,433 10,795 2002 5-40 yrs.
7 unchanged sentences
4825 Creekstone Drive Office 398 — 293 10,670 691 10,670 11,361 5,653 1999 5-40 yrs.
−Removed: Pamlico Office 289 — — 9,188 289 9,188 9,477 7,209 1980 5-40 yrs.
751 Corporate Center Office 2,665 16,939 — ( 50 ) 2,665 16,889 19,554 2,564 2018 5-40 yrs.
9 unchanged sentences
4800 Six Forks Road Office 862 4,411 — 3,338 862 7,749 8,611 4,703 1987 5-40 yrs.
−Removed: Smoketree Tower Office 2,353 11,743 — 6,818 2,353 18,561 20,914 10,951 1984 5-40 yrs.
4601 Creekstone Drive Office 255 — 217 5,771 472 5,771 6,243 3,334 1997 5-40 yrs.
6 unchanged sentences
CentreGreen Fitness Center Office 27 2,322 — ( 1 ) 27 2,321 2,348 411 2014 5-40 yrs.
+Added: One City Plaza Office 11,288 68,375 — 26,283 11,288 94,658 105,946 24,562 1986 5-40 yrs.
+Added: Edison - Land Office 5,984 — 2,031 — 8,015 — 8,015 — N/A N/A
+Added: Charter Square Office 7,267 65,881 — 4,464 7,267 70,345 77,612 11,979 2015 5-40 yrs.
+Added: MetLife Global Technology Campus Office 21,580 149,889 — 41 21,580 149,930 171,510 24,164 2015 5-40 yrs.
+Added: GlenLake Seven Office 1,662 37,332 — — 1,662 37,332 38,994 1,624 2020 5-40 yrs.
+Added: Hargett - Land Office 9,248 — — — 9,248 — 9,248 — N/A N/A
+Added: Forum I Office — — 1,278 27,809 1,278 27,809 29,087 1,197 1985 5-40 yrs.
HIGHWOODS PROPERTIES, INC.
3 unchanged sentences
Subsequent to
−Removed: Acquisition Gross Value at Close of Period
+Added: Acquisition Gross Value at Close of Period Life on
Description Property
4 unchanged sentences
Depreciation Date of
−Removed: Construction Life on
−Removed: One City Plaza Office 11,288 68,375 — 26,766 11,288 95,141 106,429 20,423 1986 5-40 yrs.
−Removed: Edison - Land Office 5,984 — 2,196 — 8,180 — 8,180 — N/A N/A
−Removed: Charter Square Office 7,267 65,881 — 4,913 7,267 70,794 78,061 10,208 2015 5-40 yrs.
−Removed: MetLife Global Technology Campus Office 21,580 149,889 — ( 153 ) 21,580 149,736 171,316 19,477 2015 5-40 yrs.
−Removed: GlenLake Seven Office — — 1,662 34,077 1,662 34,077 35,739 435 2020 5-40 yrs.
−Removed: Hargett - Land Office 6,582 — 2,816 — 9,398 — 9,398 — N/A N/A
+Added: Forum II Office — — 1,327 18,088 1,327 18,088 19,415 758 1988 5-40 yrs.
+Added: Forum III Office — — 994 23,931 994 23,931 24,925 1,001 1995 5-40 yrs.
+Added: Forum IV Office — — 2,118 43,889 2,118 43,889 46,007 1,590 2000 5-40 yrs.
+Added: Forum V Office — — 1,552 26,263 1,552 26,263 27,815 1,190 2007 5-40 yrs.
+Added: Captrust Tower Office 84,972 — — 9,670 124,530 9,670 124,530 134,200 1,673 2010 5-40 yrs.
+Added: 150 Fayetteville Office 115,731 — — 7,677 130,049 7,677 130,049 137,726 2,185 1991 5-40 yrs.
Other Property Other 27,260 20,868 ( 13,177 ) 31,819 14,083 52,687 66,770 28,878 N/A 5-40 yrs.
3 unchanged sentences
Markel 4521 Office 1,581 13,299 168 ( 397 ) 1,749 12,902 14,651 6,641 1999 5-40 yrs.
−Removed: Hamilton Beach Office 1,086 4,345 10 2,997 1,096 7,342 8,438 3,849 1986 5-40 yrs.
Highwoods Commons Office 521 — 458 4,581 979 4,581 5,560 2,342 1999 5-40 yrs.
10 unchanged sentences
North Shore Commons II Office 2,067 — ( 89 ) 11,526 1,978 11,526 13,504 4,036 2007 5-40 yrs.
−Removed: North Shore Commons C - Land Office 1,497 — 55 10 1,552 10 1,562 1 N/A 5-40 yrs.
+Added: North Shore Commons C - Land Office 1,497 — 55 10 1,552 10 1,562 1 N/A N/A
North Shore Commons D - Land Office 1,261 — — — 1,261 — 1,261 — N/A N/A
−Removed: Nuckols Corner - Land Office 1,259 — 231 — 1,490 — 1,490 — N/A N/A
One Shockoe Plaza Office — — 356 21,632 356 21,632 21,988 11,239 1996 5-40 yrs.
3 unchanged sentences
Highwoods Three Office 1,918 — 358 12,337 2,276 12,337 14,613 4,797 2005 5-40 yrs.
−Removed: Stony Point VI (Virginia Urology) Office 1,925 25,868 — ( 2 ) 1,925 25,866 27,791 2,059 2018 5-40 yrs.
+Added: Stony Point I Office 1,384 11,630 ( 267 ) 4,472 1,117 16,102 17,219 8,937 1990 5-40 yrs.
+Added: Stony Point II Office 1,240 — 103 13,949 1,343 13,949 15,292 6,983 1999 5-40 yrs.
+Added: Stony Point III Office 995 — — 11,166 995 11,166 12,161 5,785 2002 5-40 yrs.
+Added: Stony Point IV Office 955 — — 11,955 955 11,955 12,910 4,860 2006 5-40 yrs.
HIGHWOODS PROPERTIES, INC.
3 unchanged sentences
Subsequent to
−Removed: Acquisition Gross Value at Close of Period
+Added: Acquisition Gross Value at Close of Period Life on
Description Property
4 unchanged sentences
Depreciation Date of
−Removed: Construction Life on
−Removed: Stony Point I Office 1,384 11,630 ( 267 ) 4,115 1,117 15,745 16,862 8,432 1990 5-40 yrs.
−Removed: Stony Point II Office 1,240 — 103 13,296 1,343 13,296 14,639 6,534 1999 5-40 yrs.
−Removed: Stony Point III Office 995 — — 10,762 995 10,762 11,757 5,361 2002 5-40 yrs.
−Removed: Stony Point IV Office 955 — — 12,057 955 12,057 13,012 4,467 2006 5-40 yrs.
Virginia Mutual Office 1,301 6,036 15 2,598 1,316 8,634 9,950 3,865 1996 5-40 yrs.
−Removed: Waterfront Plaza Office 585 2,347 8 2,291 593 4,638 5,231 2,157 1988 5-40 yrs.
Innsbrook Centre Office 914 8,249 — 896 914 9,145 10,059 4,279 1987 5-40 yrs.
−Removed: Elks Pass - Land Office 3,326 — — — 3,326 — 3,326 — N/A N/A
+Added: Elks Pass Lane - Land Office 3,326 — 141 — 3,467 — 3,467 — N/A N/A
Meridian Three Office 2,673 16,470 — 6,510 2,673 22,980 25,653 8,097 1989 5-40 yrs.
1 unchanged sentence
5525 Gray Street Office 4,054 — 406 25,163 4,460 25,163 29,623 9,273 2005 5-40 yrs.
−Removed: Highwoods Preserve Building V Office 881 — — 25,368 881 25,368 26,249 11,031 2001 5-40 yrs.
Highwoods Bay Center I Office 3,565 — ( 64 ) 38,144 3,501 38,144 41,645 14,054 2007 5-40 yrs.
−Removed: HIW Bay Center II - Land Office 3,482 — — — 3,482 — 3,482 — N/A N/A
−Removed: Highwoods Preserve Building VII Office 790 — — 16,996 790 16,996 17,786 4,481 2007 5-40 yrs.
−Removed: HIW Preserve VII Garage Office — — — 6,932 — 6,932 6,932 2,367 2007 5-40 yrs.
Horizon Office — 6,257 — 4,475 — 10,732 10,732 5,419 1980 5-40 yrs.
14 unchanged sentences
Meridian Two Office 1,302 19,588 — 5,470 1,302 25,058 26,360 6,826 1986 5-40 yrs.
−Removed: 5332 Avion Drive Office — — 6,310 39,358 6,310 39,358 45,668 3,937 2016 5-40 yrs.
−Removed: HIGHWOODS PROPERTIES, INC.
−Removed: HIGHWOODS REALTY LIMITED PARTNERSHIP
−Removed: SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
−Removed: Initial Costs Costs Capitalized
−Removed: Subsequent to
−Removed: Acquisition Gross Value at Close of Period
−Removed: Description Property
−Removed: Encumbrance Land Bldg &
−Removed: Improv Land Bldg &
−Removed: Improv Land Bldg &
−Removed: Assets (1) Accumulated
−Removed: Depreciation Date of
−Removed: Construction Life on
−Removed: Suntrust Financial Centre Office 1,980 102,138 — 25,020 1,980 127,158 129,138 20,758 1992 5-40 yrs.
−Removed: Suntrust Financial - Land Office 2,225 — — — 2,225 — 2,225 — N/A N/A
+Added: 5332 Avion Park Drive Office — — 6,310 39,620 6,310 39,620 45,930 5,378 2016 5-40 yrs.
+Added: Truist Place Office 1,980 102,138 — 25,702 1,980 127,840 129,820 24,605 1992 5-40 yrs.
+Added: Truist Place - Land Office 2,225 — — — 2,225 — 2,225 — N/A N/A
+Added: Midtown Office — — 16,543 34,818 16,543 34,818 51,361 533 2021 5-40 yrs.
$ 602,096 $ 3,235,692 $ 165,871 $ 2,482,477 $ 767,967 $ 5,718,169 $ 6,486,136 $ 1,457,511
20 unchanged sentences
Lloyd Director February 8, 2022
−Removed: Mulhern Executive Vice President and Chief Financial Officer February 9, 2021
+Added: /s/ Brendan C.
+Added: Maiorana Executive Vice President and Chief Financial Officer February 8, 2022
/s/ Daniel L.
21 unchanged sentences
Lloyd Director of the General Partner February 8, 2022
−Removed: Mulhern Executive Vice President and Chief Financial Officer of the General Partner February 9, 2021
+Added: /s/ Brendan C.
+Added: Maiorana Executive Vice President and Chief Financial Officer of the General Partner February 8, 2022
/s/ Daniel L.
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.