Fair Value Measurements (Tables)
|
12 Months Ended |
Dec. 31, 2021 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
|
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 December 31, 2021 | | Total | | Level 1 | | Level 2 | | Level 3 | Real estate fund investments | $ | 7,730 | | | $ | — | | | $ | — | | | $ | 7,730 | | Deferred compensation plan assets ($9,104 included in restricted cash and $101,070 in other assets) | 110,174 | | | 65,158 | | | — | | | 45,016 | | Loans receivable ($46,444 included in investments in partially owned entities and $3,738 in other assets) | 50,182 | | | — | | | — | | | 50,182 | | Interest rate swaps and caps (included in other assets) | 18,929 | | | — | | | 18,929 | | | — | | Total assets | $ | 187,015 | | | $ | 65,158 | | | $ | 18,929 | | | $ | 102,928 | | | | | | | | | | Mandatorily redeemable instruments (included in other liabilities) | $ | 49,659 | | | $ | 49,659 | | | $ | — | | | $ | — | | Interest rate swaps (included in other liabilities) | 32,837 | | | — | | | 32,837 | | | — | | Total liabilities | $ | 82,496 | | | $ | 49,659 | | | $ | 32,837 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | As of December 31, 2020 | | Total | | Level 1 | | Level 2 | | Level 3 | Real estate fund investments | $ | 3,739 | | | $ | — | | | $ | — | | | $ | 3,739 | | Deferred compensation plan assets ($10,813 included in restricted cash and $94,751 in other assets) | 105,564 | | | 65,636 | | | — | | | 39,928 | | Loans receivable ($43,008 included in investments in partially owned entities and $4,735 in other assets) | 47,743 | | | — | | | — | | | 47,743 | | Interest rate swaps (included in other assets) | 17 | | | — | | | 17 | | | — | | Total assets | $ | 157,063 | | | $ | 65,636 | | | $ | 17 | | | $ | 91,410 | | | | | | | | | | Mandatorily redeemable instruments (included in other liabilities) | $ | 50,002 | | | $ | 50,002 | | | $ | — | | | $ | — | | Interest rate swaps (included in other liabilities) | 66,033 | | | — | | | 66,033 | | | — | | Total liabilities | $ | 116,035 | | | $ | 50,002 | | | $ | 66,033 | | | $ | — | |
|
Schedule of derivative assets at fair value |
The following tables summarize our consolidated derivative instruments, all of which hedge variable rate debt, as of December 31, 2021 and 2020, respectively. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | | As of December 31, 2021 | | | | | | | Variable Rate | | | | | Hedged Item | | Fair Value | | Notional Amount | | Spread over LIBOR | | Interest Rate | | Swapped Rate | | Expiration Date | Included in other assets: | | | | | | | | | | | | | 555 California Street mortgage loan interest rate swap(1) | | $ | 11,814 | | | $ | 840,000 | | (2) | L+193 | | 2.04% | | 2.26% | | 5/24 | PENN 11 mortgage loan interest rate swap(3) | | 6,565 | | | 500,000 | | | L+195 | | 2.05% | | 2.23% | | 3/24 | Various interest rate caps | | 550 | | | 1,650,000 | | | | | | | | | | | | $ | 18,929 | | | $ | 2,990,000 | | | | | | | | | | | | | | | | | | | | | | | Included in other liabilities: | | | | | | | | | | | | | Unsecured term loan interest rate swap | | $ | 28,976 | | | $ | 750,000 | | (4) | L+100 | | 1.10% | | 3.87% | | 10/23 | 33-00 Northern Boulevard mortgage loan interest rate swap | | 3,861 | | | 100,000 | | | L+180 | | 1.91% | | 4.14% | | 1/25 | | | $ | 32,837 | | | $ | 850,000 | | | | | | | | | |
______________________________________________ (1) Entered into on May 15, 2021. (2) Represents our 70.0% share of the $1.2 billion mortgage loan. (3) Entered into on March 7, 2021. (4) Remaining $50,000 balance of our unsecured term loan bears interest at a floating rate of LIBOR plus 1.00%.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | | As of December 31, 2020 | | | | | | | Variable Rate | | | | | Hedged Item | | Fair Value | | Notional Amount | | Spread over LIBOR | | Interest Rate | | Swapped Rate | | Expiration Date | Included in other assets: | | | | | | | | | | | | | Various interest rate caps | | $ | 17 | | | $ | 175,000 | | | | | | | | | | | | | | | | | | | | | | | Included in other liabilities: | | | | | | | | | | | | | Unsecured term loan interest rate swap | | $ | 57,723 | | | $ | 750,000 | | (1) | L+100 | | 1.15% | | 3.87% | | 10/23 | 33-00 Northern Boulevard mortgage loan interest rate swap | | 8,310 | | | 100,000 | | | L+180 | | 1.95% | | 4.14% | | 1/25 | | | $ | 66,033 | | | $ | 850,000 | | | | | | | | | | ______________________________________(1) Remaining $50,000 balance of our unsecured term loan bears interest at a floating rate of LIBOR plus 1.00%.
|
Schedule of derivative liabilities at fair value |
The following tables summarize our consolidated derivative instruments, all of which hedge variable rate debt, as of December 31, 2021 and 2020, respectively. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | | As of December 31, 2021 | | | | | | | Variable Rate | | | | | Hedged Item | | Fair Value | | Notional Amount | | Spread over LIBOR | | Interest Rate | | Swapped Rate | | Expiration Date | Included in other assets: | | | | | | | | | | | | | 555 California Street mortgage loan interest rate swap(1) | | $ | 11,814 | | | $ | 840,000 | | (2) | L+193 | | 2.04% | | 2.26% | | 5/24 | PENN 11 mortgage loan interest rate swap(3) | | 6,565 | | | 500,000 | | | L+195 | | 2.05% | | 2.23% | | 3/24 | Various interest rate caps | | 550 | | | 1,650,000 | | | | | | | | | | | | $ | 18,929 | | | $ | 2,990,000 | | | | | | | | | | | | | | | | | | | | | | | Included in other liabilities: | | | | | | | | | | | | | Unsecured term loan interest rate swap | | $ | 28,976 | | | $ | 750,000 | | (4) | L+100 | | 1.10% | | 3.87% | | 10/23 | 33-00 Northern Boulevard mortgage loan interest rate swap | | 3,861 | | | 100,000 | | | L+180 | | 1.91% | | 4.14% | | 1/25 | | | $ | 32,837 | | | $ | 850,000 | | | | | | | | | |
______________________________________________ (1) Entered into on May 15, 2021. (2) Represents our 70.0% share of the $1.2 billion mortgage loan. (3) Entered into on March 7, 2021. (4) Remaining $50,000 balance of our unsecured term loan bears interest at a floating rate of LIBOR plus 1.00%.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | | As of December 31, 2020 | | | | | | | Variable Rate | | | | | Hedged Item | | Fair Value | | Notional Amount | | Spread over LIBOR | | Interest Rate | | Swapped Rate | | Expiration Date | Included in other assets: | | | | | | | | | | | | | Various interest rate caps | | $ | 17 | | | $ | 175,000 | | | | | | | | | | | | | | | | | | | | | | | Included in other liabilities: | | | | | | | | | | | | | Unsecured term loan interest rate swap | | $ | 57,723 | | | $ | 750,000 | | (1) | L+100 | | 1.15% | | 3.87% | | 10/23 | 33-00 Northern Boulevard mortgage loan interest rate swap | | 8,310 | | | 100,000 | | | L+180 | | 1.95% | | 4.14% | | 1/25 | | | $ | 66,033 | | | $ | 850,000 | | | | | | | | | | ______________________________________(1) Remaining $50,000 balance of our unsecured term loan bears interest at a floating rate of LIBOR plus 1.00%.
|
Fair value measurements, nonrecurring |
| | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | As of December 31, 2020 | | Total | | Level 1 | | Level 2 | | Level 3 | Real estate assets | $ | 191,116 | | | $ | — | | | $ | — | | | $ | 191,116 | |
|
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 December 31, 2021 | | As of December 31, 2020 | | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | Cash equivalents | $ | 1,346,684 | | | $ | 1,347,000 | | | $ | 1,476,427 | | | $ | 1,476,000 | | Debt: | | | | | | | | Mortgages payable | $ | 6,099,215 | | | $ | 6,052,000 | | | $ | 5,608,458 | | | $ | 5,612,000 | | Senior unsecured notes | 1,200,000 | | | 1,230,000 | | | 450,000 | | | 476,000 | | Unsecured term loan | 800,000 | | | 800,000 | | | 800,000 | | | 800,000 | | Unsecured revolving credit facilities | 575,000 | | | 575,000 | | | 575,000 | | | 575,000 | | Total | $ | 8,674,215 | | (1) | $ | 8,657,000 | | | $ | 7,433,458 | | (1) | $ | 7,463,000 | |
____________________ (1)Excludes $58,268 and $34,462 of deferred financing costs, net and other as of December 31, 2021 and 2020, respectively.
|
Real estate fund investments |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
|
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 assets) | Unobservable Quantitative Input | December 31, 2021 | | December 31, 2020 | | December 31, 2021 | | December 31, 2020 | Discount rates | 12.0% to 15.0% | | 7.6% to 15.0% | | 13.2% | | 12.7% | Terminal capitalization rates | 5.5% to 8.8% | | 5.5% to 10.3% | | 7.4% | | 7.9% |
|
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 Year Ended December 31, | | 2021 | | 2020 | Beginning balance | $ | 3,739 | | | $ | 222,649 | | Dispositions | (5,104) | | | — | | Purchases/additional fundings | 4,474 | | | 7,197 | | Net unrealized income (loss) on held investments | 3,257 | | | (226,107) | | Net realized income on exited investments | 1,364 | | | — | | | | | | | | | | Ending balance | $ | 7,730 | | | $ | 3,739 | |
|
Deferred Compensation Plan Assets |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
|
Schedule of carrying amounts and fair values of financial instruments |
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 Year Ended December 31, | | 2021 | | 2020 | Beginning balance | $ | 39,928 | | | $ | 32,435 | | Purchases | 5,705 | | | 8,766 | | Sales | (4,766) | | | (5,467) | | Realized and unrealized gains | 2,250 | | | 808 | | Other, net | 1,899 | | | 3,386 | | Ending balance | $ | 45,016 | | | $ | 39,928 | |
|
Loans Receivable |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
|
Fair value inputs quantitative information |
Significant unobservable quantitative inputs in the table on the following page were utilized in determining the fair value of these loans receivable. 13. Fair Value Measurements - continued Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued Loans Receivable - continued | | | | | | | | | | | | | | | | | | | | | | | | | Range | | Weighted Average (based on fair value of investments) | Unobservable Quantitative Input | December 31, 2021 | | December 31, 2020 | | December 31, 2021 | | December 31, 2020 | Discount rates | 6.5% | | 6.5% | | 6.5 | % | | 6.5 | % | Terminal capitalization rates | 5.0% | | 5.0% | | 5.0 | % | | 5.0 | % |
|
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. | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, | (Amounts in thousands) | | | 2021 | | 2020 | Beginning balance | | | $ | 47,743 | | | $ | 59,251 | | Credit losses | | | — | | | (13,369) | | Interest accrual | | | 3,714 | | | 2,461 | | Paydowns | | | (1,275) | | | (600) | | Ending balance | | | $ | 50,182 | | | $ | 47,743 | |
|