Real Estate Fund Investment (Tables)

9 Months Ended

Sep. 30, 2015

Summary of Fair Value of Fund Investment

Below is a summary of the fair value of fund investments on our consolidated balance sheets.


(Amounts in thousands)	As of
Balance Sheet	September 30, 2015		December 31, 2014
Real Estate Fund Investments:
Property Funds	$	195,262	$	183,216
Alternative Investment Funds		141,131		140,171
Total	$	336,393	$	323,387

Schedule of Income from Fund Investment

Below is a summary of the income from fund investments on our consolidated statements of income.


(Amounts in thousands)	Three Months Ended			Nine Months Ended
Income Statement	September 30, 2015			September 30, 2015
Investment income	$	3,445		$	10,793
Investment expenses		239			430
Net investment income		3,206			10,363
Net realized gains		11,955			11,955
Previously recorded unrealized gains on exited investments		(6,790	)		(6,058	)
Net unrealized gains		2,562			13,966
Income from real estate fund investments	$	10,933		$	30,226

Schedule of Investment of Property Funds

The following is a summary of the investments of our Property Funds.

				As of September 30, 2015
	% Ownership			60 Wall Street			One Market Plaza				50 Beale Street
Fund II		10.0	%		46.3	%		-				-
Fund III		3.1	%		16.0	%		2.0	%			-
Fund VII/VII-H		7.2	%		-			-				42.8	%
Total Property Funds					62.3	%		2.0	%			42.8	%
Other Investors					37.7	%		98.0	%	⁽¹⁾		57.2	%
Total					100.0	%		100.0	%			100.0	%

⁽¹⁾	Includes a 49.0% direct ownership interest held by us.

Summary Of Investments Of Alternative Investment Funds

The following is a summary of the investments of our Alternative Investment Funds.


(Amounts in thousands)		%		Interest/			As of
Fund	Investment Type	Ownership		Dividend Rate		Initial Maturity	September 30, 2015		December 31, 2014
Fund VIII	Mezzanine Loans	1.7%		6.0% - 8.3%		Oct-2019 - Jan-2022	$	86,813	$	45,947
PGRESS Funds	Preferred Equity Investments		4.9%		10.3%	Apr-2017 - Feb-2019		54,318		94,224
							$	141,131	$	140,171

Schedule of Realized and Unrealized Gains from Real Estate Fund Investment

Below is a summary of realized and unrealized gains from real estate fund investments on our consolidated statement of income.


(Amounts in thousands)	Three Months Ended		Nine Months Ended
Income Statement	September 30, 2014		September 30, 2014
Realized gains on real estate fund investments	$	33,432	$	33,432
Unrealized gains on real estate fund investments		9,801		89,718
Realized and unrealized gains, net	$	43,233	$	123,150

Schedule of Asset Management Fees

Below is a summary of the asset management fees earned by our Predecessor.


(Amounts in thousands)	Three Months Ended			Nine Months Ended
Income Statement	September 30, 2014			September 30, 2014
Gross asset management fees	$	7,795		$	22,731
Eliminated fees⁽¹⁾		(210	)		(991	)
Net asset management fees	$	7,585		$	21,740

⁽¹⁾	Eliminated fees reflect a reduction in asset management fees from the general partner interest in each of the Funds.

Schedule of Amounts Recognized in Income Statement

The following tables summarize the income statements for the three and nine months ended September 30, 2014 for each of the Property Funds’ underlying investments.

(Amounts in thousands)	Property Funds' Underlying Investments for the Three Months Ended September 30, 2014
Statements of Income	1633 Broadway			900 Third Ave			31 West 52nd St			1301 Ave of the Americas			One Market Plaza			Liberty Place			1899 Penn. Ave			2099 Penn. Ave			425 Eye St
Revenues:
Rental income	$	39,105		$	8,708		$	19,885		$	30,117		$	17,555		$	1,469		$	2,027		$	51		$	2,639
Tenant reimbursement income		4,667			800			1,601			2,488			346			475			962			2			214
Fee and other income		1,214			198			489			870			504			16			45			9			-
Total revenue		44,986			9,706			21,975			33,475			18,405			1,960			3,034			62			2,853
Expenses:
Building operating		15,441			4,249			6,424			13,113			7,264			1,161			1,303			1,231			1,415
Related party management fees		768			262			353			427			191			54			68			19			91
Operating		16,209			4,511			6,777			13,540			7,455			1,215			1,371			1,250			1,506
Depreciation and amortization		3,234			1,318			8,886			12,342			8,641			-			998			-			1,400
General and administrative		23			6			25			45			170			(4	)		(3	)		340			(30	)
Total expenses		19,466			5,835			15,688			25,927			16,266			1,211			2,366			1,590			2,876
Operating income (loss)		25,520			3,871			6,287			7,548			2,139			749			668			(1,528	)		(23	)
Unrealized gain on interest rate swaps		10,946			2,833			4,261			4,441			10,765			-			-			-			-
Interest and debt expense		(13,005	)		(3,735	)		(5,622	)		(15,699	)		(13,491	)		(945	)		(1,129	)		(1,489	)		(1,277	)
Unrealized depreciation on investment in real estate		-			-			-			-			-			(17	)		-			(5	)		-
Net income (loss) before taxes		23,461			2,969			4,926			(3,710	)		(587	)		(213	)		(461	)		(3,022	)		(1,300	)
Income tax benefit (expense)		-			-			-			-			-			22			97			-			21
Net income (loss)	$	23,461		$	2,969		$	4,926		$	(3,710	)	$	(587	)	$	(191	)	$	(364	)	$	(3,022	)	$	(1,279	)

(Amounts in thousands)	Property Funds' Underlying Investments for the Nine Months Ended September 30, 2014
Statements of Income	1633 Broadway			900 Third Ave			31 West 52nd St			1301 Ave of the Americas			One Market Plaza			Liberty Place			1899 Penn. Ave			2099 Penn. Ave			425 Eye St
Revenues:
Rental income	$	112,075		$	26,472		$	56,106		$	83,866		$	53,678		$	5,198		$	6,071		$	127		$	7,939
Tenant reimbursement income		10,580			2,314			4,090			6,922			1,007			1,659			3,069			5			1,041
Fee and other income		2,438			810			3,104			2,527			2,548			39			101			19			-
Total revenues		125,093			29,596			63,300			93,315			57,233			6,896			9,241			151			8,980
Expenses:
Building operating		42,320			12,332			17,941			38,801			21,265			3,329			3,908			3,454			4,319
Related party management fees		2,253			787			1,008			1,264			585			186			209			21			275
Operating		44,573			13,119			18,949			40,065			21,850			3,515			4,117			3,475			4,594
Depreciation and amortization		8,801			5,049			19,960			30,897			26,327			-			2,921			-			4,193
General and administrative		33			37			59			96			464			12			13			739			84
Total expenses		53,407			18,205			38,968			71,058			48,641			3,527			7,051			4,214			8,871
Operating income (loss)		71,686			11,391			24,332			22,257			8,592			3,369			2,190			(4,063	)		109
Unrealized gain on interest rate swaps		23,891			5,768			8,549			10,566			21,209			-			-			-			-
Interest and debt expense		(38,630	)		(11,088	)		(16,691	)		(46,248	)		(40,563	)		(2,835	)		(3,386	)		(3,697	)		(3,797	)
Unrealized depreciation on investment in real estate		-			-			-			-			-			(506	)		-			(535	)		-
Net income (loss) before taxes		56,947			6,071			16,190			(13,425	)		(10,762	)		28			(1,196	)		(8,295	)		(3,688	)
Income tax (expense) benefit		-			-			-			-			-			(4	)		279			-			(2,294	)
Net income (loss)	$	56,947		$	6,071		$	16,190		$	(13,425	)	$	(10,762	)	$	24		$	(917	)	$	(8,295	)	$	(5,982	)