Real Estate Assets

9 Months Ended

Sep. 30, 2015

Real Estate [Abstract]

Real Estate Assets

Real Estate Assets

Acquisitions

During the third quarter of 2015, we acquired:

• a building in Tampa, FL encompassing 528,000 rentable square feet for a net purchase price of $113.5 million and an adjacent land parcel for a purchase price of $2.2 million; and

• two buildings in Atlanta, GA encompassing 896,000 rentable square feet for a net purchase price of $290.3 million.

During the second quarter of 2015, we acquired:

• land in Atlanta, GA for a purchase price and related transaction costs of $5.2 million (including contingent consideration of $0.9 million); and

• our Highwoods DLF 98/29, LLC joint venture partner’s 77.2% interest in a building in Orlando, FL encompassing 168,000 rentable square feet in exchange for the assumption of secured debt recorded at fair value of $19.3 million (see Note 6).

During the three and nine months endedSeptember 30, 2015, we expensed $0.9 million and $1.0 million, respectively, of acquisition costs (included in general and administrative expenses) related to these acquisitions. The assets acquired and liabilities assumed were recorded at fair value as determined by management based on information available at the acquisition date and on current assumptions as to future operations.

Pro Forma Disclosure

The following table sets forth a summary of the fair value of the major assets acquired and liabilities assumed relating to the above-referenced acquisition of two buildings in Atlanta, GA during the third quarter of 2015:

	Total Purchase Price Allocation
Real estate assets	$	275,639
Acquisition-related intangible assets (in deferred financing and leasing costs)	23,722
Acquisition-related below market lease liabilities (in accounts payable, accrued expenses and other liabilities)	(9,076		)
Total allocation	$	290,285

The following table sets forth the Company's revenues and net income, adjusted for interest expense, straight-line rental income, depreciation and amortization related to purchase price allocations and acquisition costs, assuming the above-referenced acquisition of two buildings in Atlanta, GA during the third quarter of 2015 had been completed as of January 1, 2013:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Pro forma revenues	$	171,247	$	159,944	$	505,107	$	477,120
Pro forma net income	$	33,354	$	54,176	$	80,647	$	92,019
Pro forma net income available for common stockholders	$	31,486	$	51,585	$	75,524	$	86,173
Pro forma earnings per share - basic	$	0.33	$	0.57	$	0.80	$	0.95
Pro forma earnings per share - diluted	$	0.33	$	0.57	$	0.80	$	0.95

2.    Real Estate Assets - Continued

Dispositions

During the third quarter of 2015, we sold:

• a building for a sale price of $15.3 million and recorded a gain on disposition of property of $6.5 million; and

• land for a sale price of $1.8 million and recorded a gain on disposition of property of $0.5 million.

During the second quarter of 2015, we sold land for a sale price of $0.5 million and recorded a gain on disposition of property of $0.2 million.

During the first quarter of 2015, we sold:

• two buildings for an aggregate sale price of $3.5 million and recorded aggregate gains on disposition of property of $0.4 million; and

• land for a sale price of $2.5 million and recorded a gain on disposition of property of $0.8 million.