Segment Information

12 Months Ended

Dec. 31, 2011

Segment Reporting Information [Line Items]

Segment Information

Segment Information

Our principal business is the operation, acquisition and development of rental real estate properties. We evaluate our business by product type and by geographic location. Each product type has different customers and economic characteristics as to rental rates and terms, cost per square foot of buildings, the purposes for which customers use the space, the degree of maintenance and customer support required and customer dependency on different economic drivers, among others. The operating results by geographic grouping are also regularly reviewed by our chief operating decision maker for assessing performance and other purposes. There are no material inter-segment transactions.

Our accounting policies of the segments are the same as those used in our Consolidated Financial Statements. All operations are within the United States and, at December 31, 2011, no single customer of the Wholly Owned Properties generated more than 10.0% of our consolidated revenues on an annualized basis.

The following table summarizes the rental and other revenues and net operating income, the primary industry property-level performance metric which is defined as rental and other revenues less rental property and other expenses, for each reportable segment:

	Year Ended December 31,
	2011		2010		2009
Rental and Other Revenues: (1)
Office:
Atlanta, GA	$	52,999	$	48,051	$	48,704
Greenville, SC	14,079		13,616		14,010
Kansas City, MO	14,391		14,822		14,839
Memphis, TN	40,324		34,982		30,642
Nashville, TN	60,857		59,151		60,551
Orlando, FL	10,235		11,615		11,809
Piedmont Triad, NC	20,650		21,155		21,255
Pittsburgh, PA	10,971		—		—
Raleigh, NC	78,513		75,604		72,521
Richmond, VA	47,536		47,191		46,617
Tampa, FL	69,865		72,522		67,294
Total Office Segment	420,420		398,709		388,242
Industrial:
Atlanta, GA	15,911		15,159		15,611
Piedmont Triad, NC	11,829		12,376		12,778
Total Industrial Segment	27,740		27,535		28,389
Retail:
Kansas City, MO	34,277		33,527		29,997
Piedmont Triad, NC	—		—		185
Raleigh, NC	146		135		120
Total Retail Segment	34,423		33,662		30,302
Residential:
Kansas City, MO	269		1,220		1,085
Total Residential Segment	269		1,220		1,085
Total Rental and Other Revenues	$	482,852	$	461,126	$	448,018

19. Segment Information - Continued

	Year Ended December 31,
	2011			2010			2009
Net Operating Income: (1)
Office:
Atlanta, GA	$	33,744		$	30,370		$	30,759
Greenville, SC	8,335			8,145			8,707
Kansas City, MO	8,403			8,882			9,072
Memphis, TN	23,075			20,828			17,700
Nashville, TN	40,341			39,281			39,072
Orlando, FL	5,188			6,259			6,268
Piedmont Triad, NC	13,045			13,894			13,935
Pittsburgh, PA	5,456			—			—
Raleigh, NC	54,590			52,254			48,784
Richmond, VA	31,290			32,049			32,027
Tampa, FL	43,369			45,480			40,089
Total Office Segment	266,836			257,442			246,413
Industrial:
Atlanta, GA	11,199			10,671			11,608
Piedmont Triad, NC	8,655			9,042			9,742
Total Industrial Segment	19,854			19,713			21,350
Retail:
Atlanta, GA (2)	(22		)	(21		)	(22		)
Kansas City, MO	20,163			19,937			18,177
Piedmont Triad, NC	—			—			12
Raleigh, NC	49			37			9
Total Retail Segment	20,190			19,953			18,176
Residential:
Kansas City, MO	19			742			581
Raleigh, NC (2)	(195		)	(362		)	(527		)
Total Residential Segment	(176		)	380			54
Total Net Operating Income	306,704			297,488			285,993
Reconciliation to income from continuing operations before disposition of property, condominiums and investment in unconsolidated affiliates and equity in earnings of unconsolidated affiliates:
Depreciation and amortization	(143,019		)	(135,414		)	(129,652		)
Impairment of assets held for use	(2,429		)	—			(2,554		)
General and administrative expense	(35,727		)	(32,948		)	(36,682		)
Interest expense	(95,999		)	(93,372		)	(86,805		)
Other income	7,363			5,655			9,549
Income from continuing operations before disposition of property, condominiums and investment in unconsolidated affiliates and equity in earnings of unconsolidated affiliates	$	36,893		$	41,409		$	39,849

__________

19. Segment Information - Continued

(1) Net of discontinued operations.

(2) Negative NOI with no corresponding revenues represents expensed real estate taxes and other carrying costs associated with land held for development that is currently zoned for the respective product type.

	December 31,
	2011		2010		2009
Total Assets:
Office:
Atlanta, GA	$	359,225	$	268,772	$	275,464
Baltimore, MD	1,789		1,787		1,787
Greenville, SC	69,669		73,931		78,567
Kansas City, MO	86,028		84,197		85,681
Memphis, TN	265,259		270,091		220,722
Nashville, TN	325,272		326,855		338,124
Orlando, FL	46,547		47,042		48,821
Piedmont Triad, NC	115,096		126,680		141,971
Pittsburgh, PA	227,965		—		—
Raleigh, NC	465,813		457,945		464,729
Richmond, VA	254,364		249,036		249,881
Tampa, FL	394,569		395,931		393,812
Total Office Segment	2,611,596		2,302,267		2,299,559
Industrial:
Atlanta, GA	133,640		135,858		136,570
Piedmont Triad, NC	78,081		79,321		92,300
Total Industrial Segment	211,721		215,179		228,870
Retail:
Atlanta, GA	504		306		1,044
Kansas City, MO	170,717		172,116		175,757
Piedmont Triad, NC	—		—		1,082
Raleigh, NC	6,667		5,170		6,048
Total Retail Segment	177,888		177,592		183,931
Residential:
Kansas City, MO	5,707		5,925		6,129
Orlando, FL	2,098		2,098		2,147
Raleigh, NC	4,768		9,574		16,291
Total Residential Segment	12,573		17,597		24,567
Corporate	167,214		159,200		150,174
Total Assets	$	3,180,992	$	2,871,835	$	2,887,101

Highwoods Realty Limited Partnership [Member]

Segment Reporting Information [Line Items]

Segment Information

Segment Information

Our principal business is the operation, acquisition and development of rental real estate properties. We evaluate our business by product type and by geographic location. Each product type has different customers and economic characteristics as to rental rates and terms, cost per square foot of buildings, the purposes for which customers use the space, the degree of maintenance and customer support required and customer dependency on different economic drivers, among others. The operating results by geographic grouping are also regularly reviewed by our chief operating decision maker for assessing performance and other purposes. There are no material inter-segment transactions.

Our accounting policies of the segments are the same as those used in our Consolidated Financial Statements. All operations are within the United States and, at December 31, 2011, no single customer of the Wholly Owned Properties generated more than 10.0% of our consolidated revenues on an annualized basis.

The following table summarizes the rental and other revenues and net operating income, the primary industry property-level performance metric which is defined as rental and other revenues less rental property and other expenses, for each reportable segment:

	Year Ended December 31,
	2011		2010		2009
Rental and Other Revenues: (1)
Office:
Atlanta, GA	$	52,999	$	48,051	$	48,704
Greenville, SC	14,079		13,616		14,010
Kansas City, MO	14,391		14,822		14,839
Memphis, TN	40,324		34,982		30,642
Nashville, TN	60,857		59,151		60,551
Orlando, FL	10,235		11,615		11,809
Piedmont Triad, NC	20,650		21,155		21,255
Pittsburgh, PA	10,971		—		—
Raleigh, NC	78,513		75,604		72,521
Richmond, VA	47,536		47,191		46,617
Tampa, FL	69,865		72,522		67,294
Total Office Segment	420,420		398,709		388,242
Industrial:
Atlanta, GA	15,911		15,159		15,611
Piedmont Triad, NC	11,829		12,376		12,778
Total Industrial Segment	27,740		27,535		28,389
Retail:
Kansas City, MO	34,277		33,527		29,997
Piedmont Triad, NC	—		—		185
Raleigh, NC	146		135		120
Total Retail Segment	34,423		33,662		30,302
Residential:
Kansas City, MO	269		1,220		1,085
Total Residential Segment	269		1,220		1,085
Total Rental and Other Revenues	$	482,852	$	461,126	$	448,018

19. Segment Information - Continued

	Year Ended December 31,
	2011			2010			2009
Net Operating Income: (1)
Office:
Atlanta, GA	$	33,746		$	30,404		$	30,810
Greenville, SC	8,336			8,156			8,722
Kansas City, MO	8,404			8,893			9,088
Memphis, TN	23,077			20,853			17,730
Nashville, TN	40,348			39,336			39,138
Orlando, FL	5,188			6,267			6,279
Piedmont Triad, NC	13,046			13,898			14,001
Pittsburgh, PA	5,456			—			—
Raleigh, NC	54,594			52,320			48,868
Richmond, VA	31,292			32,089			32,081
Tampa, FL	43,372			45,537			40,157
Total Office Segment	266,859			257,753			246,874
Industrial:
Atlanta, GA	11,200			10,684			11,627
Piedmont Triad, NC	8,656			9,053			9,758
Total Industrial Segment	19,856			19,737			21,385
Retail:
Atlanta, GA (2)	(22		)	(21		)	(22		)
Kansas City, MO	20,164			19,961			18,207
Piedmont Triad, NC	—			—			12
Raleigh, NC	49			37			9
Total Retail Segment	20,191			19,977			18,206
Residential:
Kansas City, MO	19			743			582
Raleigh, NC (2)	(195		)	(362		)	(528		)
Total Residential Segment	(176		)	381			54
Total Net Operating Income	306,730			297,848			286,519
Reconciliation to income from continuing operations before disposition of property, condominiums and investment in unconsolidated affiliates and equity in earnings of unconsolidated affiliates:
Depreciation and amortization	(143,019		)	(135,414		)	(129,652		)
Impairment of assets held for use	(2,429		)	—			(2,554		)
General and administrative expense	(35,753		)	(33,308		)	(37,208		)
Interest expense	(95,999		)	(93,372		)	(86,805		)
Other income	7,363			5,655			9,549
Income from continuing operations before disposition of property, condominiums and investment in unconsolidated affiliates and equity in earnings of unconsolidated affiliates	$	36,893		$	41,409		$	39,849

__________

19. Segment Information - Continued

(1) Net of discontinued operations.

(2) Negative NOI with no corresponding revenues represents expensed real estate taxes and other carrying costs associated with land held for development that is currently zoned for the respective product type.

	December 31,
	2011		2010		2009
Total Assets:
Office:
Atlanta, GA	$	359,225	$	268,772	$	275,464
Baltimore, MD	1,789		1,787		1,787
Greenville, SC	69,669		73,931		78,567
Kansas City, MO	86,028		84,197		85,681
Memphis, TN	265,259		270,091		220,722
Nashville, TN	325,272		326,855		338,124
Orlando, FL	46,547		47,042		48,821
Piedmont Triad, NC	115,096		126,680		141,971
Pittsburgh, PA	227,965		—		—
Raleigh, NC	465,813		457,945		464,729
Richmond, VA	254,364		249,036		249,881
Tampa, FL	394,569		395,931		393,812
Total Office Segment	2,611,596		2,302,267		2,299,559
Industrial:
Atlanta, GA	133,640		135,858		136,570
Piedmont Triad, NC	78,081		79,321		92,300
Total Industrial Segment	211,721		215,179		228,870
Retail:
Atlanta, GA	504		306		1,044
Kansas City, MO	170,717		172,116		175,757
Piedmont Triad, NC	—		—		1,082
Raleigh, NC	6,667		5,170		6,048
Total Retail Segment	177,888		177,592		183,931
Residential:
Kansas City, MO	5,707		5,925		6,129
Orlando, FL	2,098		2,098		2,147
Raleigh, NC	4,768		9,574		16,291
Total Residential Segment	12,573		17,597		24,567
Corporate	166,106		158,036		148,811
Total Assets	$	3,179,884	$	2,870,671	$	2,885,738