Fair Value Measurements (Tables)
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9 Months Ended |
Sep. 30, 2020 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
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Fair value, schedule of assets and liabilities measures on recurring basis |
The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy. | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | As of September 30, 2020 | | Total | | Level 1 | | Level 2 | | Level 3 | Real estate fund investments | $ | 3,739 | | | $ | — | | | $ | — | | | $ | 3,739 | | Deferred compensation plan assets ($9,703 included in restricted cash and $88,840 in other assets) | 98,543 | | | 59,597 | | | — | | | 38,946 | | Loans receivable ($42,174 included in investments in partially owned entities and $5,335 in other assets) | 47,509 | | | — | | | — | | | 47,509 | | Interest rate swaps (included in other assets) | 17 | | | — | | | 17 | | | — | | Total assets | $ | 149,808 | | | $ | 59,597 | | | $ | 17 | | | $ | 90,194 | | | | | | | | | | Mandatorily redeemable instruments (included in other liabilities) | $ | 49,947 | | | $ | 49,947 | | | $ | — | | | $ | — | | Interest rate swaps (included in other liabilities) | 73,536 | | | — | | | 73,536 | | | — | | Total liabilities | $ | 123,483 | | | $ | 49,947 | | | $ | 73,536 | | | $ | — | | | | | | | | | | (Amounts in thousands) | As of December 31, 2019 | | Total | | Level 1 | | Level 2 | | Level 3 | Marketable securities | $ | 33,313 | | | $ | 33,313 | | | $ | — | | | $ | — | | Real estate fund investments | 222,649 | | | — | | | — | | | 222,649 | | Deferred compensation plan assets ($11,819 included in restricted cash and $91,954 in other assets) | 103,773 | | | 71,338 | | | — | | | 32,435 | | Interest rate swaps (included in other assets) | 4,327 | | | — | | | 4,327 | | | — | | Total assets | $ | 364,062 | | | $ | 104,651 | | | $ | 4,327 | | | $ | 255,084 | | | | | | | | | | Mandatorily redeemable instruments (included in other liabilities) | $ | 50,561 | | | $ | 50,561 | | | $ | — | | | $ | — | | Interest rate swaps (included in other liabilities) | 40,354 | | | — | | | 40,354 | | | — | | Total liabilities | $ | 90,915 | | | $ | 50,561 | | | $ | 40,354 | | | $ | — | |
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Schedule of derivative assets at fair value |
The following tables summarize our consolidated derivative instruments, all of which hedge variable rate debt, as of September 30, 2020 and December 31, 2019. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | | As of September 30, 2020 | | | | | | | Variable Rate | | | | | Hedged Item (Interest rate swaps) | | Fair Value | | Notional Amount | | Spread over LIBOR | | Interest Rate | | Swapped Rate | | Expiration Date | Included in other assets: | | | | | | | | | | | | | Other | | $ | 17 | | | $ | 175,000 | | | | | | | | | | | | | | | | | | | | | | | Included in other liabilities: | | | | | | | | | | | | | Unsecured term loan | | $ | 63,437 | | | $ | 750,000 | | (1) | L+100 | | 1.15% | | 3.87% | | 10/23 | 33-00 Northern Boulevard mortgage loan | | 9,065 | | | 100,000 | | | L+180 | | 1.96% | | 4.14% | | 1/25 | 888 Seventh Avenue mortgage loan | | 1,034 | | | 375,000 | | | L+170 | | 1.84% | | 3.25% | | 12/20 | | | $ | 73,536 | | | $ | 1,225,000 | | | | | | | | | |
____________________ (1)Remaining $50,000 balance of our unsecured term loan bears interest at a floating rate of LIBOR plus 1.00%. 15. Fair Value Measurements - continued Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued Derivatives and Hedging - continued | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | | As of December 31, 2019 | | | | | | | Variable Rate | | | | | Hedged Item (Interest rate swaps) | | Fair Value | | Notional Amount | | Spread over LIBOR | | Interest Rate | | Swapped Rate | | Expiration Date | Included in other assets: | | | | | | | | | | | | | 770 Broadway mortgage loan | | $ | 4,045 | | | $ | 700,000 | | | L+175 | | 3.46% | | 2.56% | | 9/20 | 888 Seventh Avenue mortgage loan | | 218 | | | 375,000 | | | L+170 | | 3.44% | | 3.25% | | 12/20 | Other | | 64 | | | 175,000 | | | | | | | | | | | | $ | 4,327 | | | $ | 1,250,000 | | | | | | | | | | | | | | | | | | | | | | | Included in other liabilities: | | | | | | | | | | | | | Unsecured term loan | | $ | 36,809 | | | $ | 750,000 | | | L+100 | | 2.80% | | 3.87% | | 10/23 | 33-00 Northern Boulevard mortgage loan | | 3,545 | | | 100,000 | | | L+180 | | 3.52% | | 4.14% | | 1/25 | | | $ | 40,354 | | | $ | 850,000 | | | | | | | | | |
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Schedule of derivative liabilities at fair value |
The following tables summarize our consolidated derivative instruments, all of which hedge variable rate debt, as of September 30, 2020 and December 31, 2019. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | | As of September 30, 2020 | | | | | | | Variable Rate | | | | | Hedged Item (Interest rate swaps) | | Fair Value | | Notional Amount | | Spread over LIBOR | | Interest Rate | | Swapped Rate | | Expiration Date | Included in other assets: | | | | | | | | | | | | | Other | | $ | 17 | | | $ | 175,000 | | | | | | | | | | | | | | | | | | | | | | | Included in other liabilities: | | | | | | | | | | | | | Unsecured term loan | | $ | 63,437 | | | $ | 750,000 | | (1) | L+100 | | 1.15% | | 3.87% | | 10/23 | 33-00 Northern Boulevard mortgage loan | | 9,065 | | | 100,000 | | | L+180 | | 1.96% | | 4.14% | | 1/25 | 888 Seventh Avenue mortgage loan | | 1,034 | | | 375,000 | | | L+170 | | 1.84% | | 3.25% | | 12/20 | | | $ | 73,536 | | | $ | 1,225,000 | | | | | | | | | |
____________________ (1)Remaining $50,000 balance of our unsecured term loan bears interest at a floating rate of LIBOR plus 1.00%. 15. Fair Value Measurements - continued Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued Derivatives and Hedging - continued | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | | As of December 31, 2019 | | | | | | | Variable Rate | | | | | Hedged Item (Interest rate swaps) | | Fair Value | | Notional Amount | | Spread over LIBOR | | Interest Rate | | Swapped Rate | | Expiration Date | Included in other assets: | | | | | | | | | | | | | 770 Broadway mortgage loan | | $ | 4,045 | | | $ | 700,000 | | | L+175 | | 3.46% | | 2.56% | | 9/20 | 888 Seventh Avenue mortgage loan | | 218 | | | 375,000 | | | L+170 | | 3.44% | | 3.25% | | 12/20 | Other | | 64 | | | 175,000 | | | | | | | | | | | | $ | 4,327 | | | $ | 1,250,000 | | | | | | | | | | | | | | | | | | | | | | | Included in other liabilities: | | | | | | | | | | | | | Unsecured term loan | | $ | 36,809 | | | $ | 750,000 | | | L+100 | | 2.80% | | 3.87% | | 10/23 | 33-00 Northern Boulevard mortgage loan | | 3,545 | | | 100,000 | | | L+180 | | 3.52% | | 4.14% | | 1/25 | | | $ | 40,354 | | | $ | 850,000 | | | | | | | | | |
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Fair value measurements, nonrecurring |
| | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | As of September 30, 2020 | | Total | | Level 1 | | Level 2 | | Level 3 | Investment in Fifth Avenue and Times Square JV | $ | 2,811,374 | | | $ | — | | | $ | — | | | $ | 2,811,374 | |
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Schedule of carrying amounts and fair values of financial instruments |
The table below summarizes the carrying amounts and fair value of these financial instruments. | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | As of September 30, 2020 | | As of December 31, 2019 | | | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | Cash equivalents | $ | 1,248,051 | | | $ | 1,248,000 | | | $ | 1,276,815 | | | $ | 1,277,000 | | Debt: | | | | | | | | | Mortgages payable | $ | 5,661,132 | | | $ | 5,660,000 | | | $ | 5,670,016 | | | $ | 5,714,000 | | | Senior unsecured notes | 450,000 | | | 468,000 | | | 450,000 | | | 468,000 | | | Unsecured term loan | 800,000 | | | 800,000 | | | 750,000 | | | 750,000 | | | Unsecured revolving credit facilities | 575,000 | | | 575,000 | | | 575,000 | | | 575,000 | | | Total | $ | 7,486,132 | | (1) | $ | 7,503,000 | | | $ | 7,445,016 | | (1) | $ | 7,507,000 | |
____________________ (1)Excludes $29,000 and $38,407 of deferred financing costs, net and other as of September 30, 2020 and December 31, 2019, respectively.
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Real estate fund investments |
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
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Fair value inputs quantitative information |
Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate fund investments. | | | | | | | | | | | | | | | | | | | | | | | | | Range | | Weighted Average (based on fair value of investments) | Unobservable Quantitative Input | September 30, 2020 | | December 31, 2019 | | September 30, 2020 | | December 31, 2019 | Discount rates | 7.8% to 15.0% | | 8.2% to 12.0% | | 10.0% | | 9.3% | Terminal capitalization rates | 5.5% to 10.1% | | 4.6% to 8.2% | | 10.1% | | 5.3% |
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Summary of changes in level 3 plan assets |
The table below summarizes the changes in the fair value of real estate fund investments that are classified as Level 3. | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | 2020 | | 2019 | | 2020 | | 2019 | Beginning balance | $ | 17,453 | | | $ | 306,596 | | | $ | 222,649 | | | $ | 318,758 | | Purchases/additional fundings | 502 | | | — | | | 6,502 | | | 4,000 | | Net unrealized loss on held investments | (14,216) | | | — | | | (225,412) | | | (16,162) | | Ending balance | $ | 3,739 | | | $ | 306,596 | | | $ | 3,739 | | | $ | 306,596 | |
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Deferred Compensation Plan Assets |
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
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Schedule of changes in fair value of plan assets |
The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3. | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | 2020 | | 2019 | | 2020 | | 2019 | Beginning balance | $ | 36,172 | | | $ | 21,991 | | | $ | 32,435 | | | $ | 37,808 | | Purchases | 666 | | | 5,437 | | | 7,615 | | | 8,314 | | Sales | — | | | (652) | | | (2,832) | | | (20,807) | | Realized and unrealized gains | 2,116 | | | 116 | | | 925 | | | 854 | | Other, net | (8) | | | 285 | | | 803 | | | 1,008 | | Ending balance | $ | 38,946 | | | $ | 27,177 | | | $ | 38,946 | | | $ | 27,177 | |
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Loans Receivable |
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
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Fair value inputs quantitative information |
Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these loans receivable. | | | | | | | | | | | | | September 30, 2020 | | Range | | Weighted Average (based on fair value of investments) | Unobservable Quantitative Input | | | | Discount rates | 6.0% to 6.5% | | 6.1% | Terminal capitalization rates | 5.0% | | 5.0% |
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Summary of changes in level 3 plan assets |
The table below summarizes the changes in fair value of loans receivable that are classified as Level 3. | | | | | | | | | | | | (Amounts in thousands) | For the Three Months Ended September 30, 2020 | | For the Nine Months Ended September 30, 2020 | Beginning balance | $ | 46,675 | | | $ | 59,251 | | Credit losses | — | | | (13,369) | | Interest accrual | 834 | | | 1,627 | | Ending balance | $ | 47,509 | | | $ | 47,509 | |
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