XML 59 R39.htm IDEA: XBRL DOCUMENT v3.8.0.1
Real Estate and Lease Intangibles (Tables)
 12 Months Ended
Dec. 31, 2017
Summary of Carrying Amounts of Investment in Real Estate

The following table summarizes the carrying amounts for the Company’s investment in real estate (at cost) as of December 31, 2017 and 2016 (amounts in thousands):

 

 

 

2017

 

 

2016

 

Land

 

$

5,996,024

 

 

$

5,899,862

 

Depreciable property:

 

 

 

 

 

 

 

 

Buildings and improvements

 

 

17,743,042

 

 

 

16,913,430

 

Furniture, fixtures and equipment

 

 

1,548,961

 

 

 

1,346,300

 

In-Place lease intangibles

 

 

476,359

 

 

 

470,849

 

Projects under development:

 

 

 

 

 

 

 

 

Land

 

 

43,226

 

 

 

115,876

 

Construction-in-progress

 

 

120,321

 

 

 

521,292

 

Land held for development:

 

 

 

 

 

 

 

 

Land

 

 

62,538

 

 

 

84,440

 

Construction-in-progress

 

 

36,425

 

 

 

34,376

 

Investment in real estate

 

 

26,026,896

 

 

 

25,386,425

 

Accumulated depreciation

 

 

(6,040,378

)

 

 

(5,360,389

)

Investment in real estate, net

 

$

19,986,518

 

 

$

20,026,036

 

 
Summary of Carrying Amounts of Above and Below Market Ground And Retail Lease Intangibles

The following table summarizes the carrying amounts for the Company’s above and below market ground and retail lease intangibles as of December 31, 2017 and 2016 (amounts in thousands):

 

Description

 

Balance Sheet Location

 

2017

 

 

2016

 

Assets

 

 

 

 

 

 

 

 

 

 

Ground lease intangibles – below market

 

Other Assets

 

$

191,918

 

 

$

178,251

 

Retail lease intangibles – above market

 

Other Assets

 

 

1,260

 

 

 

1,260

 

Lease intangible assets

 

 

 

 

193,178

 

 

 

179,511

 

Accumulated amortization

 

 

 

 

(22,434

)

 

 

(17,972

)

Lease intangible assets, net

 

 

 

$

170,744

 

 

$

161,539

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Ground lease intangibles – above market

 

Other Liabilities

 

$

2,400

 

 

$

2,400

 

Retail lease intangibles – below market

 

Other Liabilities

 

 

5,270

 

 

 

5,270

 

Lease intangible liabilities

 

 

 

 

7,670

 

 

 

7,670

 

Accumulated amortization

 

 

 

 

(5,143

)

 

 

(4,509

)

Lease intangible liabilities, net

 

 

 

$

2,527

 

 

$

3,161

 

 
Summary of the Effect of the Amortization for Above and Below Market Ground and Retail Lease Intangibles

The following table provides a summary of the effect of the amortization for above and below market ground and retail lease intangibles on the Company’s accompanying consolidated statements of operations and comprehensive income for the years ended December 31, 2017, 2016 and 2015 (amounts in thousands):

Description

 

Income Statement Location

 

2017

 

 

2016

 

 

2015

 

Ground lease intangible amortization

 

Property and Maintenance

 

$

(4,369

)

 

$

(4,321

)

 

$

(4,321

)

Retail lease intangible amortization

 

Rental Income

 

 

541

 

 

 

895

 

 

 

939

 

Total amortization of above/below

    market lease intangibles

 

 

 

$

(3,828

)

 

$

(3,426

)

 

$

(3,382

)

 
Summary of Aggregate Amortization Expense for Above and Below Market Ground And Retail Lease Intangibles

The following table provides a summary of the aggregate amortization for above and below market ground and retail lease intangibles for each of the next five years (amounts in thousands):

 

 

 

2018

 

 

2019

 

 

2020

 

 

2021

 

 

2022

 

 

Ground lease intangibles

 

$

(4,463

)

 

$

(4,463

)

 

$

(4,463

)

 

$

(4,463

)

 

$

(4,463

)

 

Retail lease intangibles

 

71

 

 

 

71

 

 

 

71

 

 

 

71

 

 

 

27

 

 

Total

 

$

(4,392

)

 

$

(4,392

)

 

$

(4,392

)

 

$

(4,392

)

 

$

(4,436

)

 

 
Acquired Properties From Unaffiliated Parties

During the year ended December 31, 2017, the Company acquired the entire equity interest in the following from unaffiliated parties (purchase price in thousands):

 

 

 

Properties

 

 

Apartment Units

 

 

Purchase Price

 

Rental Properties – Consolidated (1)

 

 

4

 

 

 

947

 

 

$

468,050

 

Total

 

 

4

 

 

 

947

 

 

$

468,050

 

 

 

(1)

Purchase price includes an allocation of approximately $68.3 million to land, $386.2 million to depreciable property (inclusive of capitalized closing costs) and $13.7 million to ground lease intangible (included in other assets).  For one of the property acquisitions, the Company owns the building and improvements and leases the land underlying the improvements under a long-term ground lease that expires in 2113.  This property is consolidated and reflected as a real estate asset while the ground lease is accounted for as an operating lease.

During the year ended December 31, 2016, the Company acquired the entire equity interest in the following from unaffiliated parties (purchase price in thousands):

 

 

 

Properties

 

 

Apartment Units

 

 

Purchase Price

 

Rental Properties – Consolidated (1)

 

 

4

 

 

 

573

 

 

$

249,334

 

Total

 

 

4

 

 

 

573

 

 

$

249,334

 

 

 

(1)

Purchase price includes an allocation of approximately $98.0 million to land and $151.3 million to depreciable property.
Disposed Properties to Unaffiliated Parties

During the year ended December 31, 2017, the Company disposed of the following to unaffiliated parties (sales price in thousands):

 

 

Properties

 

 

Apartment Units

 

 

Sales Price

 

Rental Properties – Consolidated

 

 

5

 

 

 

1,194

 

 

$

354,950

 

Land Parcels (one)

 

 

—

 

 

 

—

 

 

 

33,450

 

Total

 

 

5

 

 

 

1,194

 

 

$

388,400

 

 

During the year ended December 31, 2016, the Company disposed of the following to unaffiliated parties (sales price in thousands):

 

 

Properties

 

 

Apartment Units

 

 

Sales Price

 

Consolidated:

 

 

 

 

 

 

 

 

 

 

 

 

Rental Properties (1)

 

 

98

 

 

 

29,440

 

 

$

6,811,503

 

Land Parcels

 

 

—

 

 

 

—

 

 

 

57,455

 

Unconsolidated:

 

 

 

 

 

 

 

 

 

 

 

 

Rental Properties (2)

 

 

1

 

 

 

336

 

 

 

74,500

 

Total

 

 

99

 

 

 

29,776

 

 

$

6,943,458

 

 

 

(1)

Includes the Starwood Portfolio sale (see further discussion below) representing 72 operating properties consisting of 23,262 apartment units for $5.365 billion.

 

(2)

The Company owned a 20% interest in this unconsolidated rental property.  Sale price listed is the gross sale price.  The Company’s share of the net sales proceeds approximated $12.4 million.

Ownership Breakdown

The ownership breakdown includes (table does not include various uncompleted development properties):

 

 

 

Properties

 

 

Apartment Units

 

Wholly Owned Properties

 

 

283

 

 

 

73,598

 

Master-Leased Properties – Consolidated

 

 

3

 

 

 

853

 

Partially Owned Properties – Consolidated

 

 

17

 

 

 

3,215

 

Partially Owned Properties – Unconsolidated

 

 

2

 

 

 

945

 

 

 

 

305

 

 

 

78,611

 

 
Starwood Portfolio [Member]  
Ownership Breakdown

The following table provides the operating segments/locations of the properties and apartment units sold in the Starwood Transaction.  The sale of these properties represents the continuation of the Company’s long-term strategy of investing in the urban and high-density suburban areas of its coastal gateway markets.  See Note 11 for further discussion.

 

Markets/Metro Areas

 

Properties

 

 

Apartment Units

 

South Florida

 

 

33

 

 

 

10,742

 

Denver

 

 

18

 

 

 

6,635

 

Washington D.C.

 

 

10

 

 

 

3,020

 

Seattle

 

 

8

 

 

 

1,721

 

Los Angeles

 

 

3

 

 

 

1,144

 

Total

 

 

72

 

 

 

23,262