Capital and Financing Transactions (Tables)

12 Months Ended

Dec. 31, 2015

Summary of outstanding credit facilities

At December 31, 2015, the Company had a total of $550.0 million outstanding under the following credit facilities (in thousands):



Credit Facilities	Interest Rate		Maturity	Outstanding Balance
$10.0 Million Working Capital Revolving Credit Facility	1.7	%	03/30/2018	$	—
$450.0 Million Revolving Credit Facility	1.5	%	03/30/2018	—
$250.0 Million Five-Year Term Loan	2.6	%	03/29/2019	250,000
$200.0 Million Five-Year Term Loan	1.5	%	06/26/2020	200,000
$100.0 Million Seven-Year Term Loan	4.4	%	03/31/2021	100,000
				$	550,000

At December 31, 2014, the Company had a total of $481.5 million outstanding under the following credit facilities (in thousands):



Credit Facilities	Interest Rate		Maturity	Outstanding Balance
$10.0 Million Working Capital Revolving Credit Facility	1.7	%	03/30/2018	$	—
$250.0 Million Revolving Credit Facility	1.6	%	03/30/2018	131,500
$250.0 Million Five-Year Term Loan	2.5	%	03/29/2019	250,000
$100.0 Million Seven-Year Term Loan	4.3	%	03/31/2021	100,000
				$	481,500

Summary of mortgage notes payable

A summary of mortgage notes payable at December 31, 2015 and 2014 is as follows (in thousands):



	Variable	Fixed	Maturity	Monthly		December 31,
Office Properties	Rate	Rate (1)	Date	Payment		2015		2014
Wholly Owned
Westshore Corporate Center		2.5%	05/01/2015	$	—	$	—	$	14,091
Teachers Insurance and Annuity Associations (5 properties)		6.2%	01/01/2016	—		—		68,884
John Hancock Facility (2 properties)		7.6%	06/01/2016	—		—		17,398
3350 Peachtree		7.3%	03/05/2017	—		—		32,185
One Orlando Centre		4.6%	05/11/2017	265		54,000		54,000
One Congress Plaza		3.2%	06/11/2017	649		128,000		128,000
San Jacinto Center		3.2%	06/11/2017	509		101,000		101,000
The Pointe		4.0%	02/10/2019	112		23,364		23,500
Corporate Center IV (2)		4.6%	04/08/2019	223		35,491		36,000
Citrus Center		6.3%	06/01/2020	153		20,645		21,138
Stein Mart		6.5%	08/01/2020	81		10,778		11,041
Phoenix Tower		3.9%	03/01/2023	417		78,555		80,000
Deerwood North and South		3.9%	04/01/2023	276		84,500		84,500
Lincoln Place		3.6%	06/11/2016	293		48,030		48,670
CityWestPlace I & II		3.5%	07/06/2016	738		114,460		116,111
CityWestPlace III & IV		4.3%	03/05/2020	512		90,334		91,889
San Felipe Plaza		4.3%	12/01/2018	576		107,877		109,585
Two Buckhead Plaza		2.6%	10/01/2017	278		52,000		—
Total Wholly Owned				5,082		949,034		1,037,992

Parkway Properties Office Fund II, LP
3344 Peachtree		5.3%	10/01/2017	485		80,986		82,907
Hayden Ferry Lakeside I (2)		4.5%	07/25/2018	112		21,536		21,887
Hayden Ferry Lakeside II & IV (2)		4.0%	07/25/2018	227		46,064		46,875
Hayden Ferry Lakeside III	2.2%		07/25/2018	58		31,271		481
245 Riverside		5.2%	03/31/2019	—		—		9,166
Two Ravinia		5.0%	05/20/2019	—		—		22,100
Two Liberty Place		5.2%	06/10/2019	495		89,567		90,200
Total Fund II				$	1,377	$	269,424	$	273,616
Unamortized premium, net						$	19,878	$	27,842
Total Mortgage Notes Payable				$	6,459	$	1,238,336	$	1,339,450


(1)	This represents the net effective interest rate based on GAAP interest expense.


(2)	Property has entered into an interest rate swap agreement with the Lender associated with these mortgage loans.

Summary of aggregate annual maturities of mortgage notes payable

The aggregate annual maturities of mortgage notes payable at December 31, 2015 are as follows (in thousands):



	Weighted Average GAAP Interest Rate	Total Mortgage Maturities		Balloon Payments		Principal Amortization
2016	3.6%	$	175,849	$	161,407	$	14,442
2017	3.7%	426,356		412,397		13,959
2018	3.9%	209,724		193,500		16,224
2019	4.9%	146,435		138,632		7,803
2020	4.8%	115,156		110,335		4,821
Thereafter	3.9%	144,938		135,141		9,797
Total principal maturities		1,218,458		$	1,151,412	$	67,046
Fair value premiums on mortgage debt acquired, net	N/A	19,878
Total principal maturities and fair value premium on mortgage debt acquired	4.0%	$	1,238,336

Summary of interest rate hedge contracts

The Company's interest rate hedge contracts at December 31, 2015 and 2014 are summarized as follows (in thousands):



								Asset (Liability) Balance
		Current						December 31,
Type of Hedge	Balance Sheet Location	Associated Loan	Notional Amount		Maturity Date	Reference Rate	Fixed Rate	2015			2014
Swap	Receivables and Other Assets	5-year term loan	$	50,000	09/27/2017	1-month LIBOR	0.7%	$	190		$	452
Swap	Account payable and other liabilities	5-year term loan	$	120,000	06/11/2018	1-month LIBOR	1.6%	(1,515		)	(1,438		)
Swap	Account payable and other liabilities	Corporate Center IV	$	13,475	10/08/2018	1-month LIBOR	3.3%	(68		)	(18		)
Swap	Receivables and Other Assets	5-year term loan	$	75,000	09/27/2017	1-month LIBOR	0.7%	284			679
Swap	Account payable and other liabilities	Hayden Ferry Lakeside II	$	4,316	01/25/2018	1-month LIBOR	1.7%	(61		)	(71		)
Swap	Account payable and other liabilities	Hayden Ferry Lakeside I	$	21,536	01/25/2018	1-month LIBOR	4.5%	(655		)	(877		)
Swap	Account payable and other liabilities	Hayden Ferry Lakeside II	$	41,747	01/25/2018	1-month LIBOR	1.5%	(392		)	(413		)
Swap	Account payable and other liabilities	245 Riverside	$	9,166	09/30/2018	1-month LIBOR	5.2%	—			(617		)
Swap	Account payable and other liabilities	Corporate Center IV	$	22,016	10/08/2018	1-month LIBOR	5.4%	(1,295		)	(1,613		)
Swap	Account payable and other liabilities	Two Ravinia Drive	$	22,100	11/18/2018	1-month LIBOR	5.0%	—			(1,317		)
Swap	Account payable and other liabilities	5-year term loan	$	5,000	04/01/2019	1-month LIBOR	1.7%	(76		)	(60		)
Swap	Account payable and other liabilities	7-year term loan	$	100,000	03/31/2021	1-month LIBOR	2.6%	(4,964		)	(4,652		)
								$	(8,552	)	$	(9,945	)

Schedule of effect of derivative financial instruments

The table below presents the effect of the Company's derivative financial instruments on the Company's consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2015, 2014 and 2013 (in thousands):



	Year Ended
Derivatives in Cash Flow Hedging Relationships (Interest Rate Swaps)	December 31,
	2015			2014			2013
Amount of gain (loss) recognized in other comprehensive income on derivatives	$	(7,498	)	$	(10,968	)	$	4,110
Amount reclassified from accumulated other comprehensive loss into earnings	$	7,138		$	7,445		$	5,615
Amount of (gain) loss recognized in income on derivatives (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)	$	1,859		$	(212	)	$	390