Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-33106 | |
Entity Registrant Name | Douglas Emmett, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 20-3073047 | |
Entity Address, Address Line One | 1299 Ocean Avenue | |
Entity Address, Address Line Two | Suite 1000 | |
Entity Address, City or Town | Santa Monica | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90401 | |
City Area Code | 310 | |
Local Phone Number | 255-7700 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | DEI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 175,788,905 | |
Entity Central Index Key | 0001364250 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Investment in real estate, gross | $ 12,265,460 | $ 11,819,077 |
Less: accumulated depreciation and amortization | (3,251,032) | (3,028,645) |
Investment in real estate, net | 9,014,428 | 8,790,432 |
Ground lease right-of-use asset | 7,458 | 7,464 |
Cash and cash equivalents | 281,008 | 335,905 |
Tenant receivables | 8,971 | 13,127 |
Deferred rent receivables | 116,028 | 115,148 |
Acquired lease intangible assets, net | 3,671 | 4,168 |
Interest rate contract assets | 286,890 | 15,473 |
Investment in unconsolidated Fund | 48,758 | 46,594 |
Other assets | 38,523 | 25,721 |
Total Assets | 9,805,735 | 9,354,032 |
Liabilities | ||
Secured notes payable and revolving credit facility, net | 5,190,605 | 5,012,076 |
Ground lease liability | 10,852 | 10,860 |
Interest payable, accounts payable and deferred revenue | 159,858 | 145,460 |
Security deposits | 61,105 | 55,285 |
Acquired lease intangible liabilities, net | 34,704 | 24,710 |
Interest rate contract liabilities | 1,647 | 69,930 |
Dividends payable | 49,231 | 49,158 |
Total liabilities | 5,508,002 | 5,367,479 |
Douglas Emmett, Inc. stockholders' equity: | ||
Common Stock, $0.01 par value, 750,000,000 authorized, 175,788,827 and 175,529,133 outstanding at September 30, 2022 and December 31, 2021, respectively | 1,758 | 1,755 |
Additional paid-in capital | 3,492,943 | 3,488,886 |
Accumulated other comprehensive income (loss) | 199,649 | (38,774) |
Accumulated deficit | (1,110,611) | (1,035,798) |
Total Douglas Emmett, Inc. stockholders' equity | 2,583,739 | 2,416,069 |
Noncontrolling interests | 1,713,994 | 1,570,484 |
Total equity | 4,297,733 | 3,986,553 |
Total Liabilities and Equity | $ 9,805,735 | $ 9,354,032 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, outstanding (in shares) | 175,788,827 | 175,529,133 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||
Revenues | $ 253,663 | $ 238,244 | $ 739,515 | $ 679,545 |
Operating Expenses | ||||
General and administrative expenses | 11,272 | 11,435 | 34,173 | 30,564 |
Depreciation and amortization | 96,276 | 93,104 | 279,588 | 279,801 |
Total operating expenses | 195,862 | 184,231 | 561,496 | 534,338 |
Other income | 1,649 | 498 | 2,490 | 2,178 |
Other expenses | (199) | (147) | (561) | (764) |
Income from unconsolidated Fund | 356 | 260 | 921 | 713 |
Interest expense | (38,394) | (38,878) | (109,560) | (110,018) |
Net income | 21,213 | 15,746 | 71,309 | 37,316 |
Net loss attributable to noncontrolling interests | 1,742 | 2,395 | 1,534 | 8,623 |
Net income attributable to common stockholders | $ 22,955 | $ 18,141 | $ 72,843 | $ 45,939 |
Net income per common share, basic (in dollars per share) | $ 0.13 | $ 0.10 | $ 0.41 | $ 0.26 |
Net income per common share, diluted (in dollars per share) | $ 0.13 | $ 0.10 | $ 0.41 | $ 0.26 |
Office rental | ||||
Revenues | ||||
Revenues | $ 207,927 | $ 203,856 | $ 616,744 | $ 582,425 |
Operating Expenses | ||||
Expenses | 74,653 | 70,026 | 212,006 | 195,745 |
Office rental | Rental revenues and tenant recoveries | ||||
Revenues | ||||
Revenues | 182,011 | 181,455 | 542,535 | 523,391 |
Office rental | Parking and other income | ||||
Revenues | ||||
Revenues | 25,916 | 22,401 | 74,209 | 59,034 |
Multifamily rental | ||||
Revenues | ||||
Revenues | 45,736 | 34,388 | 122,771 | 97,120 |
Operating Expenses | ||||
Expenses | 13,661 | 9,666 | 35,729 | 28,228 |
Multifamily rental | Parking and other income | ||||
Revenues | ||||
Revenues | 4,679 | 4,510 | 12,536 | 12,187 |
Multifamily rental | Rental revenues | ||||
Revenues | ||||
Revenues | $ 41,057 | $ 29,878 | $ 110,235 | $ 84,933 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 21,213 | $ 15,746 | $ 71,309 | $ 37,316 |
Other comprehensive income: cash flow hedges | 108,352 | 19,585 | 342,628 | 100,451 |
Comprehensive income | 129,565 | 35,331 | 413,937 | 137,767 |
Comprehensive income attributable to noncontrolling interests | (31,731) | (3,384) | (102,671) | (23,332) |
Comprehensive income attributable to common stockholders | $ 97,834 | $ 31,947 | $ 311,266 | $ 114,435 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | AOCI | Accumulated Deficit | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2020 | 175,464,000 | |||||
Stockholders' Equity [Roll Forward] | ||||||
Exchange of OP units for common stock (in shares) | 22,000 | 22,000 | ||||
Ending balance (in shares) at Sep. 30, 2021 | 175,486,000 | |||||
Beginning balance at Dec. 31, 2020 | $ 3,996,019 | $ 1,755 | $ 3,487,887 | $ (148,035) | $ (904,516) | $ 1,558,928 |
Stockholders' Equity [Roll Forward] | ||||||
Exchange of OP Units for common stock | 354 | (354) | ||||
Repurchase of OP Units with cash | (115) | (53) | (62) | |||
Net income (loss) attributable to noncontrolling interests | 37,316 | 45,939 | (8,623) | |||
Dividends | (147,400) | (147,400) | ||||
Cash flow hedge adjustments | 100,451 | 68,496 | 31,955 | |||
Distributions | (41,188) | (41,188) | ||||
Stock-based compensation | 9,611 | 9,611 | ||||
Ending balance at Sep. 30, 2021 | $ 3,954,694 | $ 1,755 | 3,488,188 | (79,539) | (1,005,977) | 1,550,267 |
Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per common share (in usd per share) | $ 0.84 | |||||
Beginning balance (in shares) at Jun. 30, 2021 | 175,471,000 | |||||
Stockholders' Equity [Roll Forward] | ||||||
Exchange of OP units for common stock (in shares) | 15,000 | |||||
Ending balance (in shares) at Sep. 30, 2021 | 175,486,000 | |||||
Beginning balance at Jun. 30, 2021 | $ 3,979,132 | $ 1,755 | 3,487,950 | (93,345) | (974,982) | 1,557,754 |
Stockholders' Equity [Roll Forward] | ||||||
Exchange of OP Units for common stock | 243 | (243) | ||||
Repurchase of OP Units with cash | (10) | (5) | (5) | |||
Net income (loss) attributable to noncontrolling interests | 15,746 | 18,141 | (2,395) | |||
Dividends | (49,136) | (49,136) | ||||
Cash flow hedge adjustments | 19,585 | 13,806 | 5,779 | |||
Distributions | (13,719) | (13,719) | ||||
Stock-based compensation | 3,096 | 3,096 | ||||
Ending balance at Sep. 30, 2021 | $ 3,954,694 | $ 1,755 | 3,488,188 | (79,539) | (1,005,977) | 1,550,267 |
Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per common share (in usd per share) | $ 0.28 | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 175,529,133 | 175,529,000 | ||||
Stockholders' Equity [Roll Forward] | ||||||
Exchange of OP units for common stock (in shares) | 260,000 | 260,000 | ||||
Ending balance (in shares) at Sep. 30, 2022 | 175,788,827 | 175,789,000 | ||||
Beginning balance at Dec. 31, 2021 | $ 3,986,553 | $ 1,755 | 3,488,886 | (38,774) | (1,035,798) | 1,570,484 |
Stockholders' Equity [Roll Forward] | ||||||
Exchange of OP Units for common stock | 3 | 4,233 | (4,236) | |||
Repurchase of OP Units with cash | (336) | (176) | (160) | |||
Net income (loss) attributable to noncontrolling interests | 71,309 | 72,843 | (1,534) | |||
Dividends | (147,656) | (147,656) | ||||
Cash flow hedge adjustments | 342,628 | 238,423 | 104,205 | |||
Contributions | 81,000 | 81,000 | ||||
Distributions | (45,376) | (45,376) | ||||
Stock-based compensation | 9,611 | 9,611 | ||||
Ending balance at Sep. 30, 2022 | $ 4,297,733 | $ 1,758 | 3,492,943 | 199,649 | (1,110,611) | 1,713,994 |
Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per common share (in usd per share) | $ 0.84 | |||||
Beginning balance (in shares) at Jun. 30, 2022 | 175,784,000 | |||||
Stockholders' Equity [Roll Forward] | ||||||
Exchange of OP units for common stock (in shares) | 5,000 | |||||
Ending balance (in shares) at Sep. 30, 2022 | 175,788,827 | 175,789,000 | ||||
Beginning balance at Jun. 30, 2022 | $ 4,228,951 | $ 1,758 | 3,492,864 | 124,770 | (1,084,346) | 1,693,905 |
Stockholders' Equity [Roll Forward] | ||||||
Exchange of OP Units for common stock | 80 | (80) | ||||
Repurchase of OP Units with cash | (6) | (1) | (5) | |||
Net income (loss) attributable to noncontrolling interests | 21,213 | 22,955 | (1,742) | |||
Dividends | (49,220) | (49,220) | ||||
Cash flow hedge adjustments | 108,352 | 74,879 | 33,473 | |||
Distributions | (14,649) | (14,649) | ||||
Stock-based compensation | 3,092 | 3,092 | ||||
Ending balance at Sep. 30, 2022 | $ 4,297,733 | $ 1,758 | $ 3,492,943 | $ 199,649 | $ (1,110,611) | $ 1,713,994 |
Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per common share (in usd per share) | $ 0.28 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Activities | ||||
Net income | $ 21,213 | $ 15,746 | $ 71,309 | $ 37,316 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Income from unconsolidated Fund | (356) | (260) | (921) | (713) |
Depreciation and amortization | 96,276 | 93,104 | 279,588 | 279,801 |
Net accretion of acquired lease intangibles | (3,343) | (2,163) | (8,050) | (7,668) |
Straight-line rent | (880) | (217) | ||
Loan premium amortized and written off | (344) | (344) | ||
Deferred loan costs amortized and written off | 5,908 | 8,131 | ||
Amortization of stock-based compensation | 2,266 | 2,317 | 7,156 | 7,358 |
Operating distributions from unconsolidated Fund | 921 | 709 | ||
Change in working capital components: | ||||
Tenant receivables | 4,156 | 5,240 | ||
Interest payable, accounts payable and deferred revenue | 31,825 | 23,810 | ||
Security deposits | 4,508 | (2,420) | ||
Other assets | (13,507) | (11,421) | ||
Net cash provided by operating activities | 381,669 | 339,582 | ||
Investing Activities | ||||
Capital expenditures for improvements to real estate | (111,495) | (83,863) | ||
Capital expenditures for developments | (60,762) | (152,204) | ||
Insurance recoveries for damage to real estate | 4,274 | 2,895 | ||
Property acquisition | (330,470) | 0 | ||
Capital distributions from unconsolidated Fund | 1,454 | 779 | ||
Net cash used in investing activities | (496,999) | (232,393) | ||
Financing Activities | ||||
Proceeds from borrowings | 230,000 | 1,045,000 | ||
Repayment of borrowings | (55,614) | (775,587) | ||
Loan cost payments | (1,620) | (9,828) | ||
Purchase of interest rate caps | (481) | 0 | ||
Proceeds from sale of interest rate cap | 444 | 0 | ||
Contributions from noncontrolling interests in consolidated JVs | 81,000 | 0 | ||
Distributions paid to noncontrolling interests | (45,376) | (41,188) | ||
Dividends paid to common stockholders | (147,584) | (147,393) | ||
Repurchase of OP Units | (336) | (115) | ||
Net cash provided by financing activities | 60,433 | 70,889 | ||
(Decrease) increase in cash and cash equivalents and restricted cash | (54,897) | 178,078 | ||
Cash and cash equivalents and restricted cash - beginning balance | 336,006 | 172,517 | ||
Cash and cash equivalents and restricted cash - ending balance | 281,109 | 350,595 | 281,109 | 350,595 |
Cash and cash equivalents | 281,008 | 350,494 | 281,008 | 350,494 |
Restricted cash | 101 | 101 | 101 | 101 |
Cash and cash equivalents and restricted cash | 281,109 | 350,595 | 281,109 | 350,595 |
Operating Activities | ||||
Cash paid for interest, net of capitalized interest | 103,666 | 102,152 | ||
Capitalized interest paid | 7,357 | 6,177 | ||
Non-cash Investing Transactions | ||||
Accrual for real estate and development capital expenditures | 19,508 | 27,718 | ||
Capitalized stock-based compensation for improvements to real estate and developments | 826 | 779 | 2,455 | 2,253 |
Removal of fully depreciated and amortized buildings, building improvements, tenant improvements and lease intangibles | 57,177 | 61,304 | ||
Removal of fully amortized acquired lease intangible assets | 1,221 | 200 | ||
Removal of fully accreted acquired lease intangible liabilities | 9,831 | 19,443 | ||
Non-cash Financing Transactions | ||||
Gain recorded in AOCI | 318,408 | 44,262 | ||
Dividends declared | $ 49,220 | $ 49,136 | 147,656 | 147,400 |
Exchange of OP Units for common stock | 4,236 | 354 | ||
Unconsolidated Funds | ||||
Non-cash Financing Transactions | ||||
Gain recorded in AOCI | $ 3,777 | $ 192 |
Overview
Overview | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview | Overview Organization and Business Description Douglas Emmett, Inc. is a fully integrated, self-administered and self-managed REIT. We are one of the largest owners and operators of high-quality office and multifamily properties in Los Angeles County, California and Honolulu, Hawaii. Through our interest in our Operating Partnership and its subsidiaries, consolidated JVs and unconsolidated Fund, we focus on owning, acquiring, developing and managing a substantial market share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. The terms "us," "we" and "our" as used in the consolidated financial statements refer to Douglas Emmett, Inc. and its subsidiaries on a consolidated basis. At September 30, 2022, our Consolidated Portfolio consisted of (i) a 17.7 million square foot office portfolio, (ii) 4,610 multifamily apartment units and (iii) fee interests in two parcels of land from which we receive rent under ground leases. We also manage and own an equity interest in an unconsolidated Fund which, at September 30, 2022, owned an additional 0.4 million square feet of office space. We manage our unconsolidated Fund alongside our Consolidated Portfolio, and we therefore present the statistics for our office portfolio on a Total Portfolio basis. As of September 30, 2022, our portfolio (not including two parcels of land from which we receive rent under ground leases), consisted of the following properties (including ancillary retail space): Consolidated Portfolio Total Office Wholly-owned properties 53 53 Consolidated JV properties 16 16 Unconsolidated Fund properties — 2 69 71 Multifamily Wholly-owned properties 11 11 Consolidated JV properties 2 2 13 13 Total 82 84 Basis of Presentation The accompanying consolidated financial statements are the consolidated financial statements of Douglas Emmett, Inc. and its subsidiaries, including our Operating Partnership and our consolidated JVs. All significant intercompany balances and transactions have been eliminated in our consolidated financial statements. We consolidate entities in which we are considered to be the primary beneficiary of a VIE or have a majority of the voting interest of the entity. We are deemed to be the primary beneficiary of a VIE when we have (i) the power to direct the activities of that VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We do not consolidate entities in which the other parties have substantive kick-out rights to remove our power to direct the activities, most significantly impacting the economic performance, of that VIE. In determining whether we are the primary beneficiary, we consider factors such as ownership interest, management representation, authority to control decisions, and contractual and substantive participating rights of each party. We consolidate our Operating Partnership through which we conduct substantially all of our business, and own, directly and through subsidiaries, substantially all of our assets, and are obligated to repay substantially all of our liabilities. The consolidated debt, excluding our consolidated JV's, was $3.41 billion as of September 30, 2022 and December 31, 2021. See Note 8. We also consolidate four JVs through our Operating Partnership. We consolidate our Operating Partnership and our four JVs because they are VIEs and we or our Operating Partnership are the primary beneficiary for each. As of September 30, 2022, our consolidated VIE entities, excluding our Operating Partnership, had: • aggregate consolidated assets of $3.97 billion (of which $3.55 billion related to investment in real estate), and • aggregate consolidated liabilities of $1.90 billion (of which $1.81 billion related to debt). As of December 31, 2021, our consolidated VIE entities, excluding our Operating Partnership, had: • aggregate consolidated assets of $3.56 billion (of which $3.28 billion related to investment in real estate), and • aggregate consolidated liabilities of $1.72 billion (of which $1.64 billion related to debt). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies We have not made any changes to our significant accounting policies disclosed in our 2021 Annual Report on Form 10-K. Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make certain estimates that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Revenue Recognition Rental revenues and tenant recoveries We account for our rental revenues and tenant recoveries in accordance with Topic 842 "Leases". Rental revenues and tenant recoveries are included in: (i) Rental revenues and tenant recoveries under Office rental, and (ii) Rental revenues under Multifamily rental, in our consolidated statements of operations. Collectibility In accordance with Topic 842, we perform an assessment as to whether or not substantially all of the amounts due under a tenant’s lease agreement is deemed probable of collection. This assessment involves using a methodology that requires judgment and estimates about matters that are uncertain at the time the estimates are made, including tenant specific factors, specific industry conditions, and general economic trends and conditions. For leases where we have concluded it is probable that we will collect substantially all the lease payments due under those leases, we continue to record lease income on a straight-line basis over the lease term. For leases where we have concluded that it is not probable that we will collect substantially all the lease payments due under those leases, we limit the lease income to the lesser of the income recognized on a straight-line basis or cash basis. If our conclusion of collectibility changes, we will record the difference between the lease income that would have been recognized on a straight-line basis and cash basis as a current-period adjustment to rental revenues and tenant recoveries. We write-off tenant receivables and deferred rent receivables as a charge against rental revenues and tenant recoveries in the period we conclude that substantially all of the lease payments are not probable of collection. If we subsequently collect amounts that were previously written off then the amounts collected are recorded as an increase to our rental revenues and tenant recoveries. Charges for uncollectible office tenant receivables and deferred rent receivables, which were primarily due to the impact of the COVID-19 pandemic, reduced our office revenues by: • $0.1 million and $0.3 million for the three months ended September 30, 2022 and 2021, respectively, and • $0.3 million and $2.8 million for the nine months ended September 30, 2022 and 2021, respectively. We restored accrual basis accounting for certain office tenants that were previously determined to be uncollectible and accounted for on a cash basis of accounting, which increased our office revenues by: • $1.6 million for the three months ended September 30, 2022, and • $3.3 million for the nine months ended September 30, 2022. Office parking revenues We account for our office parking revenues in accordance with ASC 606 "Revenue from Contracts with Customers". Office parking revenues are included in Parking and other income under Office rental in our consolidated statements of operations. Our lease contracts generally make a specified number of parking spaces available to the tenant, and we bill and recognize parking revenues on a monthly basis in accordance with the lease agreements, generally using the monthly parking rates in effect at the time of billing. Office parking revenues were: • $22.1 million and $19.0 million for the three months ended September 30, 2022 and 2021, respectively, and • $62.6 million and $50.1 million for the nine months ended September 30, 2022 and 2021, respectively. Office parking receivables, which are included in Tenant receivables in our consolidated balance sheets, were: • $1.0 million as of September 30, 2022, and • $0.8 million as of December 31, 2021. Income Taxes We have elected to be taxed as a REIT under the Code. Provided that we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. We are subject to corporate-level tax on the earnings that we derive through our TRS. New Accounting Pronouncements Changes to US GAAP are implemented by the FASB in the form of ASUs. We consider the applicability and impact of all ASUs. As of the date of this Report, the FASB has not issued any ASUs that we expect to be applicable and have a material impact on our consolidated financial statements. |
Investment in Real Estate
Investment in Real Estate | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Investment in Real Estate | Investment in Real Estate The table below summarizes our investment in real estate: (In thousands) September 30, 2022 December 31, 2021 Land $ 1,172,907 $ 1,150,821 Buildings and improvements (1) 9,878,871 9,344,087 Tenant improvements and lease intangibles 962,658 935,639 Property under development (1) 251,024 388,530 Investment in real estate, gross $ 12,265,460 $ 11,819,077 __________________________________________________________________________________ (1) During the nine months ended September 30, 2022, Property under development balances transferred to Building and improvements for real estate placed into service was $178.7 million. Acquisition of 1221 Ocean Avenue On April 26, 2022, we paid $330.0 million, excluding acquisition costs, to acquire a luxury multifamily apartment building with 120 units, located at 1221 Ocean Avenue in Santa Monica. We acquired the property through a new consolidated JV that we manage and in which we own a 55% interest. We accounted for the acquisition as an asset acquisition and the acquired property's operating results are included in our consolidated operating results from the date of acquisition. The table below summarizes the purchase price allocation for the acquisition. The contract price and the purchase price allocation total in the table below differ due to acquisition costs, prorations and similar adjustments: (In thousands) Purchase Price Allocation Land $ 22,086 Buildings and improvements 319,666 Tenant improvements and lease intangibles 8,879 Acquired below-market leases (18,542) Other liabilities assumed (1,619) Net assets and liabilities acquired $ 330,470 |
Ground Lease
Ground Lease | 9 Months Ended |
Sep. 30, 2022 | |
Lessee Disclosure [Abstract] | |
Ground Lease | Ground Lease We pay rent under a ground lease located in Honolulu, Hawaii, which expires on December 31, 2086. The rent is fixed at $733 thousand per year until February 28, 2029, after which it will reset to the greater of the existing ground rent or the market rent at the time. As of September 30, 2022, the ground lease right-of-use asset carrying value was $7.5 million and the ground lease liability was $10.9 million. Ground rent expense, which is included in Office expenses in our consolidated statements of operations, was: • $183 thousand for each of the three month periods ended September 30, 2022 and 2021, and • $548 thousand for each of the nine month periods ended September 30, 2022 and 2021. The table below, which assumes that the ground rent payments will continue to be $733 thousand per year after February 28, 2029, presents the future minimum ground lease payments as of September 30, 2022: Twelve months ending September 30: (In thousands) 2023 $ 733 2024 733 2025 733 2026 733 2027 733 Thereafter 43,429 Total future minimum lease payments $ 47,094 |
Acquired Lease Intangibles
Acquired Lease Intangibles | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Lease Intangibles | Acquired Lease Intangibles Summary of our Acquired Lease Intangibles (In thousands) September 30, 2022 December 31, 2021 Above-market tenant leases $ 5,185 $ 6,406 Above-market tenant leases - accumulated amortization (2,395) (3,132) Above-market ground lease where we are the lessor 1,152 1,152 Above-market ground lease - accumulated amortization (271) (258) Acquired lease intangible assets, net $ 3,671 $ 4,168 Below-market tenant leases $ 66,920 $ 58,209 Below-market tenant leases - accumulated accretion (32,216) (33,499) Acquired lease intangible liabilities, net $ 34,704 $ 24,710 Impact on the Consolidated Statements of Operations The table below summarizes the net amortization/accretion related to our above- and below-market leases: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 Net accretion of above- and below-market tenant lease assets and liabilities (1) $ 3,348 $ 2,168 $ 8,063 $ 7,681 Amortization of an above-market ground lease asset (2) (5) (5) (13) (13) Total $ 3,343 $ 2,163 $ 8,050 $ 7,668 ______________________________________________ (1) Recorded as a net increase to office and multifamily rental revenues. (2) Recorded as a decrease to office parking and other income. |
Investment in Unconsolidated Fu
Investment in Unconsolidated Fund | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate Investments, Net [Abstract] | |
Investment in Unconsolidated Fund | Investment in Unconsolidated Fund Description of our Fund As of September 30, 2022 and 2021, we managed and owned an equity interest of 33.5% in an unconsolidated Fund, Partnership X, through which we and other investors in the Fund owned two office properties totaling 0.4 million square feet. Partnership X pays us fees and reimburses us for certain expenses related to property management and other services we provide, which are included in Other income in our consolidated statements of operations. We also receive distributions based on invested capital and on any profits that exceed certain specified cash returns to the investors. The table below presents cash distributions we received from Partnership X: Nine Months Ended September 30, (In thousands) 2022 2021 Operating distributions received $ 921 $ 709 Capital distributions received 1,454 779 Total distributions received $ 2,375 $ 1,488 Summarized Financial Information for Partnership X The tables below present selected financial information for Partnership X. The amounts presented reflect 100% (not our pro-rata share) of amounts related to Partnership X, and are based upon historical acquired book value: (In thousands) September 30, 2022 December 31, 2021 Total assets $ 150,059 $ 139,171 Total liabilities $ 119,598 $ 117,668 Total equity $ 30,461 $ 21,503 Nine Months Ended September 30, (In thousands) 2022 2021 Total revenues $ 13,893 $ 12,643 Operating income $ 4,361 $ 3,508 Net income $ 2,387 $ 1,801 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2022 | |
Other Assets [Abstract] | |
Other Assets | Other Assets (In thousands) September 30, 2022 December 31, 2021 Restricted cash $ 101 $ 101 Prepaid expenses 29,909 15,936 Indefinite-lived intangibles 1,988 1,988 Furniture, fixtures and equipment, net 2,446 2,499 Other 4,079 5,197 Total other assets $ 38,523 $ 25,721 |
Secured Notes Payable and Revol
Secured Notes Payable and Revolving Credit Facility, Net | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Secured Notes Payable and Revolving Credit Facility, Net | Secured Notes Payable and Revolving Credit Facility, Net Description Maturity Date (1) Principal Balance as of September 30, 2022 Principal Balance as of December 31, 2021 Variable Interest Rate Fixed Interest Rate (2) Swap Maturity Date (In thousands) Consolidated Wholly Owned Subsidiaries Term loan (3)(4) 3/3/2025 $ 335,000 $ 335,000 LIBOR + 1.30% 3.84% 3/1/2023 Fannie Mae loan (3)(4) 4/1/2025 102,400 102,400 LIBOR + 1.25% 2.76% 3/1/2023 Term loan (3) 8/15/2026 415,000 415,000 LIBOR + 1.10% 3.07% 8/1/2025 Term loan (3) 9/19/2026 400,000 400,000 LIBOR + 1.15% 2.44% 9/1/2024 Term loan (3) 9/26/2026 200,000 200,000 LIBOR + 1.20% 2.36% 10/1/2024 Term loan (3) 11/1/2026 400,000 400,000 LIBOR + 1.15% 2.31% 10/1/2024 Fannie Mae loan (3)(5) 6/1/2027 550,000 550,000 LIBOR + 1.37% N/A N/A Term loan (3) 5/18/2028 300,000 300,000 LIBOR + 1.40% 2.21% 6/1/2026 Term loan (3)(6) 1/1/2029 300,000 300,000 SOFR + 1.56% 2.66% 1/1/2027 Fannie Mae loan (3) 6/1/2029 255,000 255,000 LIBOR + 0.98% 3.26% 6/1/2027 Fannie Mae loan (3) 6/1/2029 125,000 125,000 LIBOR + 0.98% 3.25% 6/1/2027 Term loan (7) 6/1/2038 28,711 29,325 N/A 4.55% N/A Revolving credit facility (8) 8/21/2023 — — LIBOR + 1.15% N/A N/A Total Wholly Owned Subsidiary Debt 3,411,111 3,411,725 Consolidated JVs Term loan (3)(4) 12/19/2024 400,000 400,000 LIBOR + 1.30% 3.47% 1/1/2023 Term loan (3)(9) 5/15/2027 450,000 450,000 LIBOR + 1.35% 2.26% 4/1/2025 Term loan (3) 8/19/2028 625,000 625,000 LIBOR + 1.35% 2.12% 6/1/2025 Term loan (3)(10) 4/26/2029 175,000 — SOFR + 1.25% 3.90% 5/1/2026 Fannie Mae loan (3) 6/1/2029 160,000 160,000 LIBOR + 0.98% 3.25% 7/1/2027 Total Consolidated Debt (11) 5,221,111 5,046,725 Unamortized loan premium, net (12) 3,663 4,007 Unamortized deferred loan costs, net (13) (34,169) (38,656) Total Consolidated Debt, net $ 5,190,605 $ 5,012,076 _______________________________________________________________________ Except as noted below, our loans and revolving credit facility: (i) are non-recourse, (ii) are secured by separate collateral pools consisting of one or more properties, (iii) require interest-only monthly payments with the outstanding principal due upon maturity, and (iv) contain certain financial covenants which could require us to deposit excess cash flow with the lender under certain circumstances unless we (at our option) either provide a guarantee or additional collateral or pay down the loan within certain parameters set forth in the loan documents. Certain loans with maturity date extension options require us to meet minimum financial thresholds in order to extend the loan maturity date. (1) Maturity dates include extension options. (2) Effective rate as of September 30, 2022. Includes the effect of interest rate swaps and excludes the effect of prepaid loan fees and loan premiums. See Note 10 for details of our interest rate swaps. See further below for details of our loan costs and loan premiums. (3) The loan agreement includes a zero-percent LIBOR or SOFR floor. If the loan is swap-fixed then the related swaps do not include such a floor. (4) The related swaps expire in 2023. The loans (in order of the table) have the following LIBOR credit spreads: 1.30%, 1.25% and 1.30%. (5) The swaps expired on June 1, 2022. (6) The effective rate decreased from 3.42% to 2.66% on January 1, 2022 when a new swap replaced old swaps that expired. (7) The loan requires monthly payments of principal and interest. Principal amortization is based upon a 30-year amortization schedule. (8) $400.0 million revolving credit facility. Unused commitment fees range from 0.10% to 0.15%. The facility has a zero-percent LIBOR floor. (9) The effective rate decreased from 3.04% to 2.26% on July 1, 2022 when existing swaps were upsized to replace swaps that expired. (10) We closed this loan during the second quarter of 2022 in connection with the acquisition of a residential property, see Note 3. (11) The table does not include our unconsolidated Fund's loan - see Note 16. See Note 13 for our fair value disclosures. (12) Balances are net of accumulated amortization of $3.5 million and $3.2 million at September 30, 2022 and December 31, 2021, respectively. (13) Balances are net of accumulated amortization of $52.0 million and $46.3 million at September 30, 2022 and December 31, 2021, respectively. Debt Statistics The table below summarizes our consolidated fixed and floating rate debt: (In thousands) Principal Balance as of September 30, 2022 Principal Balance as of December 31, 2021 Aggregate swapped to fixed rate loans $ 4,642,400 $ 5,017,400 Aggregate fixed rate loans 28,711 29,325 Aggregate floating rate loans 550,000 — Total Debt $ 5,221,111 $ 5,046,725 The table below summarizes certain consolidated debt statistics as of September 30, 2022: Statistics for consolidated loans with interest fixed under the terms of the loan or a swap Principal balance (in billions) $4.67 Weighted average remaining life (including extension options) 4.7 years Weighted average remaining fixed interest period 2.6 years Weighted average annual interest rate 2.82% Future Principal Payments At September 30, 2022, the minimum future principal payments due on our consolidated secured notes payable and revolving credit facility were as follows: Twelve months ending September 30: Including Maturity Extension Options (1) (In thousands) 2023 $ 852 2024 891 2025 838,333 2026 1,015,976 2027 1,401,022 Thereafter 1,964,037 Total future principal payments $ 5,221,111 ________________________________________________ (1) Some of our loan agreements require that we meet certain minimum financial thresholds to be able to extend the loan maturity. Loan Premium and Loan Costs The table below presents loan premium and loan costs, which are included in Interest expense in our consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 Loan premium amortized and written off $ (116) $ (116) $ (344) $ (344) Deferred loan costs amortized and written off 2,030 3,939 5,908 8,131 Loan costs expensed 8 173 110 208 Total $ 1,922 $ 3,996 $ 5,674 $ 7,995 |
Interest Payable, Accounts Paya
Interest Payable, Accounts Payable and Deferred Revenue | 9 Months Ended |
Sep. 30, 2022 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Interest Payable, Accounts Payable and Deferred Revenue | Interest Payable, Accounts Payable and Deferred Revenue (In thousands) September 30, 2022 December 31, 2021 Interest payable $ 12,584 $ 12,254 Accounts payable and accrued liabilities 100,511 83,150 Deferred revenue 46,763 50,056 Total interest payable, accounts payable and deferred revenue $ 159,858 $ 145,460 |
Derivative Contracts
Derivative Contracts | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts We make use of interest rate swap and cap contracts to manage the risk associated with changes in interest rates on our floating-rate debt and to satisfy certain lender requirements. When we enter into a floating-rate term loan, we generally enter into an interest rate swap agreement for the equivalent principal amount, for a period covering the majority of the loan term, which effectively converts our floating-rate debt to a fixed-rate basis during that time. We may enter into derivative contracts that are intended to hedge certain economic risks, even though hedge accounting does not apply or we elect to not apply hedge accounting. We do not speculate in derivatives and we do not make use of any other derivative instruments. See Note 8 regarding our debt and our consolidated JVs' debt that is hedged. Derivative Summary The table below summarizes our derivative contracts as of September 30, 2022: Number of Interest Rate Contracts Notional Derivatives Designated as Cash Flow Hedges: Consolidated derivatives - swaps (1)(3)(5) 30 $ 4,642,400 Unconsolidated Fund's derivatives - swaps (2)(3)(5) 2 $ 115,000 Derivatives Not Designated as Cash Flow Hedges: Consolidated derivatives - caps (3)(4)(5) 5 $ 1,100,000 ___________________________________________________ (1) The notional amount includes 100%, not our pro-rata share, of our consolidated JVs' derivatives. (2) The notional amount reflects 100%, not our pro-rata share, of our unconsolidated Fund's derivatives. For more information about our Fund, including our equity interest percentage see Note 6. (3) Our derivative contracts do not provide for right of offset between derivative contracts. (4) Includes four interest rate caps purchased with a notional amount of $550.0 million and one interest rate cap sold with a notional amount of $550.0 million. (5) See Note 13 for our derivative fair value disclosures. Credit-risk-related Contingent Features Certain of our swaps include credit-risk related contingent features. For example, we have agreements with certain of our interest rate swap counterparties that contain a provision under which we could be declared in default on our derivative obligations if repayment of the underlying indebtedness that we are hedging is accelerated by the lender due to our default on the indebtedness. As of September 30, 2022, there have been no events of default with respect to our interest rate swaps, our consolidated JVs' interest rate swaps, or our Fund's interest rate swaps. We do not post collateral for our interest rate swap contract liabilities. The fair value of our interest rate swap contract liabilities, including accrued interest and excluding credit risk adjustments, was as follows: (In thousands) September 30, 2022 December 31, 2021 Consolidated derivatives (1)(2) $ — $ 77,760 Unconsolidated Fund's derivatives (3) $ — $ — ___________________________________________________ (1) The amounts include 100%, not our pro-rata share, of our consolidated JVs' derivatives. (2) We did not have any consolidated swaps in a liability position as of September 30, 2022. (3) Our unconsolidated Fund did not have any swaps in a liability position for the periods presented. For more information about our Fund, including our equity interest percentage, see Note 6. Counterparty Credit Risk We are subject to credit risk from the counterparties on our interest rate swap and cap contract assets because we do not receive collateral. We seek to minimize that risk by entering into agreements with a variety of counterparties with investment grade ratings. The fair value of our interest rate swap and cap contract assets, including accrued interest and excluding credit risk adjustments, was as follows: (In thousands) September 30, 2022 December 31, 2021 Consolidated derivatives (1) $ 293,568 $ 14,927 Unconsolidated Fund's derivatives (2) $ 13,627 $ 1,889 ___________________________________________________ (1) The amounts include 100%, not our pro-rata share, of our consolidated JVs' derivatives. (2) The amounts reflect 100%, not our pro-rata share, of our unconsolidated Fund's derivatives. For more information about our Fund, including our equity interest percentage, see Note 6. Impact of Hedges on AOCI and the Consolidated Statements of Operations The table below presents the effect of our derivatives on our AOCI and the consolidated statements of operations: (In thousands) Nine Months Ended September 30, 2022 2021 Derivatives Designated as Cash Flow Hedges: Consolidated derivatives: Gains recorded in AOCI before reclassifications (1) $ 318,408 $ 44,262 Losses reclassified from AOCI to Interest Expense (1) $ 20,505 $ 55,951 Interest Expense presented in the consolidated statements of operations $ (109,560) $ (110,018) Unconsolidated Fund's derivative (our share) (2) : Gains recorded in AOCI before reclassifications (1) $ 3,777 $ 192 (Gains) losses reclassified from AOCI to Income from unconsolidated Fund (1) $ (62) $ 46 Income from unconsolidated Fund presented in the consolidated statements of operations $ 921 $ 713 Derivatives Not Designated as Cash Flow Hedges: Consolidated derivatives: Loss recorded as interest expense $ 38 $ — ___________________________________________________ (1) See Note 11 for our AOCI reconciliation. (2) We calculate our share by multiplying the total amount for the Fund by our equity interest in the Fund. For more information about our Fund, including our equity interest percentage, see Note 6. Future Reclassifications from AOCI At September 30, 2022, our estimate of the AOCI related to derivatives designated as cash flow hedges that will be reclassified to earnings during the next twelve months as interest rate swap payments are made is as follows: (In thousands) Consolidated derivatives: Gains to be reclassified from AOCI to Interest Expense $ 114,921 Unconsolidated Fund's derivative (our share) (1) : Gains to be reclassified from AOCI to Income from unconsolidated Fund $ 1,333 ___________________________________________________ (1) We calculate our share by multiplying the total amount for the Fund by our equity interest in the Fund. For more information about our Fund, including our equity interest percentage, see Note 6. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Transactions During the Nine Months Ended September 30, 2022 • We acquired 260 thousand OP Units in exchange for issuing an equal number of shares of our common stock to the holders of the OP Units. • We acquired 10 thousand OP Units for $336 thousand in cash. • We acquired a multifamily apartment building through a new consolidated JV that we manage and in which we own a 55% interest. See Note 3 for more information regarding the property we purchased. We contributed $99.0 million to the JV and an outside investor contributed $81.0 million to the JV. During the Nine Months Ended September 30, 2021 • We acquired 22 thousand OP Units in exchange for issuing an equal number of shares of our common stock to the holders of the OP Units. • We acquired 4 thousand OP Units for $115 thousand in cash. Noncontrolling Interests Our noncontrolling interests consist of interests in our Operating Partnership and consolidated JVs which are not owned by us. As of September 30, 2022, noncontrolling interests in our Operating Partnership owned 30.8 million OP Units and fully-vested LTIP Units, which represented approximately 15% of our Operating Partnership's total outstanding interests, and we owned 175.8 million OP Units (to match our 175.8 million shares of outstanding common stock). A share of our common stock, an OP Unit and an LTIP Unit (once vested and booked up) have essentially the same economic characteristics, sharing equally in the distributions from our Operating Partnership. Investors who own OP Units have the right to cause our Operating Partnership to acquire their OP Units for an amount of cash per unit equal to the market value of one share of our common stock at the date of acquisition, or, at our election, exchange their OP Units for shares of our common stock on a one-for-one b asis. LTIP Units have been granted to our employees and non-employee directors as part of their compensation. These awards generally vest over a service period and once vested can generally be converted to OP Units provided our stock price increases by more than a specified hurdle. Changes in our Ownership Interest in our Operating Partnership The table below presents the effect on our equity from net income attributable to common stockholders and changes in our ownership interest in our Operating Partnership: Nine Months Ended September 30, (In thousands) 2022 2021 Net income attributable to common stockholders $ 72,843 $ 45,939 Transfers from noncontrolling interests: Exchange of OP Units with noncontrolling interests 4,236 354 Repurchase of OP Units from noncontrolling interests (176) (53) Net transfers from noncontrolling interests 4,060 301 Change from net income attributable to common stockholders and transfers from noncontrolling interests $ 76,903 $ 46,240 AOCI Reconciliation (1) The table below presents a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges: Nine Months Ended September 30, (In thousands) 2022 2021 Accumulated Other Comprehensive Loss - Beginning balance $ (38,774) $ (148,035) Consolidated derivatives: Other comprehensive income before reclassifications 318,408 44,262 Reclassification of losses from AOCI to Interest Expense 20,505 55,951 Unconsolidated Fund's derivatives (our share) (2) : Other comprehensive income before reclassifications 3,777 192 Reclassification of (gains) losses from AOCI to Income from unconsolidated Fund (62) 46 Net current period OCI 342,628 100,451 OCI attributable to noncontrolling interests (104,205) (31,955) OCI attributable to common stockholders 238,423 68,496 Accumulated Other Comprehensive Income (Loss) - Ending balance $ 199,649 $ (79,539) ___________________________________________________ (1) See Note 10 for the details of our derivatives and Note 13 for our derivative fair value disclosures. (2) We calculate our share by multiplying the total amount for the Fund by our equity interest in the Fund. Equity Compensation On June 2, 2016, the Douglas Emmett 2016 Omnibus Stock Incentive Plan, as amended (the "2016 Plan"), became effective after receiving stockholder approval, superseding our prior plan, the Douglas Emmett 2006 Omnibus Stock Incentive Plan (the "2006 Plan"), both of which allow for awards to our directors, officers, employees and consultants. The key terms of the two plans are substantially identical, except for the date of expiration, the number of shares authorized for grants and various technical provisions. Grants after June 2, 2016 were awarded under the 2016 Plan, while grants prior to that date were awarded under the 2006 Plan. Both plans are administered by the compensation committee of our board of directors. The table below presents our stock-based compensation expense: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 Stock-based compensation expense, net $ 2,266 $ 2,317 $ 7,156 $ 7,358 Capitalized stock-based compensation $ 826 $ 779 $ 2,455 $ 2,253 |
EPS
EPS | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
EPS | EPS We calculate basic EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. We calculate diluted EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method. We account for unvested LTIP awards that contain non-forfeitable rights to dividends as participating securities and include these securities in the computation of basic and diluted EPS using the two-class method. The table below presents the calculation of basic and diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator (In thousands): Net income attributable to common stockholders $ 22,955 $ 18,141 $ 72,843 $ 45,939 Allocation to participating securities: Unvested LTIP Units (218) (212) (666) (645) Net income attributable to common stockholders - basic and diluted $ 22,737 $ 17,929 $ 72,177 $ 45,294 Denominator (In thousands): Weighted average shares of common stock outstanding - basic and diluted (1) 175,784 175,480 175,742 175,472 Net income per common share - basic and diluted $ 0.13 $ 0.10 $ 0.41 $ 0.26 ____________________________________________________ (1) Outstanding OP Units and vested LTIP Units are not included in the denominator in calculating diluted EPS, even though they may be exchanged under certain conditions for common stock on a one-for-one basis, because their associated net income (equal on a per unit basis to the Net income per common share - diluted) was already deducted in calculating Net income attributable to common stockholders. Accordingly, any exchange would not have any effect on diluted EPS. The table below presents the weighted average OP Units and vested LTIP Units outstanding for the respective periods: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 OP Units 30,158 28,630 29,626 28,343 Vested LTIP Units 690 1,454 1,255 1,735 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our estimates of the fair value of financial instruments were determined using available market information and widely used valuation methods. Considerable judgment is necessary to interpret market data and determine an estimated fair value. The use of different market assumptions or valuation methods may have a material effect on the estimated fair values. The FASB fair value framework hierarchy distinguishes between assumptions based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market-based inputs. The hierarchy is as follows: Level 1 - inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - inputs are observable either directly or indirectly for similar assets and liabilities in active markets. Level 3 - inputs are unobservable assumptions generated by the reporting entity. As of September 30, 2022, we did not have any fair value estimates of financial instruments using Level 3 inputs. Financial instruments disclosed at fair value Short term financial instruments The carrying amounts for cash and cash equivalents, tenant receivables, revolving credit line, interest payable, accounts payable, security deposits and dividends payable approximate fair value because of the short-term nature of these instruments. Secured notes payable See Note 8 for the details of our secured notes payable. We estimate the fair value of our consolidated secured notes payable by calculating the credit-adjusted present value of the principal and interest payments for each secured note payable. The calculation incorporates observable market interest rates which we consider to be Level 2 inputs, assumes that the loans will be outstanding through maturity, and includes any maturity extension options. The table below presents the estimated fair value and carrying value of our secured notes payable (excluding our revolving credit facility), the carrying value includes unamortized loan premium and excludes unamortized deferred loan fees: (In thousands) September 30, 2022 December 31, 2021 Fair value $ 5,106,272 $ 5,017,494 Carrying value $ 5,224,774 $ 5,050,732 Ground lease liability See Note 4 for the details of our ground lease. We estimate the fair value of our ground lease liability by calculating the present value of the future lease payments disclosed in Note 4 using our incremental borrowing rate. The calculation incorporates observable market interest rates which we consider to be Level 2 inputs. The table below presents the estimated fair value and carrying value of our ground lease liability: (In thousands) September 30, 2022 December 31, 2021 Fair value $ 4,525 $ 8,861 Carrying value $ 10,852 $ 10,860 Financial instruments measured at fair value Derivative instruments See Note 10 for the details of our derivatives. We present our derivatives in our consolidated balance sheets at fair value, on a gross basis, excluding accrued interest. We estimate the fair value of our derivative instruments by calculating the credit-adjusted present value of the expected future cash flows of each derivative. The calculation incorporates the contractual terms of the derivatives, observable market interest rates which we consider to be Level 2 inputs, and credit risk adjustments to reflect the counterparty's as well as our own non-performance risk. Our derivatives are not subject to master netting arrangements. The table below presents the estimated fair value of our derivatives: (In thousands) September 30, 2022 December 31, 2021 Derivative Assets: Fair value - consolidated derivatives (1) $ 286,890 $ 15,473 Fair value - unconsolidated Fund's derivatives (2) $ 13,268 $ 1,963 Derivative Liabilities: Fair value - consolidated derivatives (1) $ 1,647 $ 69,930 Fair value - unconsolidated Fund's derivatives (2) $ — $ — ____________________________________________________ (1) Consolidated derivatives, which include 100%, not our pro-rata share, of our consolidated JVs' derivatives, are included in interest rate contracts in our consolidated balance sheets. The fair values exclude accrued interest which is included in interest payable in the consolidated balance sheets. (2) The amounts reflect 100%, not our pro-rata share, of our unconsolidated Fund's derivatives. Our pro-rata share of the amounts related to the unconsolidated Fund's derivatives is included in our Investment in unconsolidated Fund in our consolidated balance sheets. Our unconsolidated Fund did not have any derivatives in a liability position for the periods presented. See Note 6 for more information about our Fund, including our equity interest percentage, and see "Guarantees" in Note 16 regarding our Fund's derivatives. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes. We operate in two business segments: (i) the acquisition, development, ownership and management of office real estate and (ii) the acquisition, development, ownership and management of multifamily real estate. The services for our office segment primarily include rental of office space and other tenant services, including parking and storage space rental. The services for our multifamily segment include rental of apartments and other tenant services, including parking and storage space rental. Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources. Therefore, depreciation and amortization expense is not allocated among segments. General and administrative expenses and interest expense are not included in segment profit as our internal reporting addresses these items on a corporate level. The table below presents the operating activity of our reportable segments: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Office Segment Total office revenues $ 207,927 $ 203,856 $ 616,744 $ 582,425 Office expenses (74,653) (70,026) (212,006) (195,745) Office segment profit 133,274 133,830 404,738 386,680 Multifamily Segment Total multifamily revenues 45,736 34,388 122,771 97,120 Multifamily expenses (13,661) (9,666) (35,729) (28,228) Multifamily segment profit 32,075 24,722 87,042 68,892 Total profit from all segments $ 165,349 $ 158,552 $ 491,780 $ 455,572 The table below presents a reconciliation of the total profit from all segments to net income attributable to common stockholders: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Total profit from all segments $ 165,349 $ 158,552 $ 491,780 $ 455,572 General and administrative expenses (11,272) (11,435) (34,173) (30,564) Depreciation and amortization (96,276) (93,104) (279,588) (279,801) Other income 1,649 498 2,490 2,178 Other expenses (199) (147) (561) (764) Income from unconsolidated Fund 356 260 921 713 Interest expense (38,394) (38,878) (109,560) (110,018) Net income 21,213 15,746 71,309 37,316 Net loss attributable to noncontrolling interests 1,742 2,395 1,534 8,623 Net income attributable to common stockholders $ 22,955 $ 18,141 $ 72,843 $ 45,939 |
Future Minimum Lease Rental Rec
Future Minimum Lease Rental Receipts | 9 Months Ended |
Sep. 30, 2022 | |
Lessor Disclosure [Abstract] | |
Future Minimum Lease Rental Receipts | Future Minimum Lease Rental Receipts We lease space to tenants primarily under non-cancelable operating leases that generally contain provisions for a base rent plus reimbursement of certain operating expenses, and we own fee interests in two parcels of land from which we receive rent under ground leases. The table below presents the future minimum base rentals on our non-cancelable office tenant and ground leases for our consolidated properties at September 30, 2022: Twelve months ending September 30: (In thousands) 2023 $ 623,700 2024 538,724 2025 430,771 2026 335,745 2027 260,602 Thereafter 716,131 Total future minimum base rentals (1) $ 2,905,673 ___________________________________ (1) Does not include (i) residential leases, which typically have a term of one year or less, (ii) holdover rent, (iii) other types of rent such as storage and antenna rent, (iv) tenant reimbursements, (v) straight-line rent, (vi) amortization/accretion of acquired above/below-market lease intangibles and (vii) percentage rents. The amounts assume that early termination options held by tenants will not be exercised. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Legal Proceedings From time to time, we are party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business. Excluding ordinary, routine litigation incidental to our business, we are not currently a party to any legal proceedings that we believe would reasonably be expected to have a materially adverse effect on our business, financial condition or results of operations. Concentration of Risk Tenant Receivables We are subject to credit risk with respect to our tenant receivables and deferred rent receivables related to our tenant leases. Our tenants' ability to honor the terms of their respective leases remains dependent upon economic, regulatory and social factors. We seek to minimize our credit risk from our tenant leases by (i) targeting smaller, more affluent office tenants, from a diverse mix of industries, (ii) performing credit evaluations of prospective tenants and (iii) obtaining security deposits or letters of credit from our tenants. For the nine months ended September 30, 2022 and 2021, no tenant accounted for more than 10% of our total revenues. See our revenue recognition policy in Note 2 for the charges to revenue for uncollectible amounts for tenant receivables and deferred rent receivables. Geographic Risk All of our properties, including the properties of our consolidated JVs and unconsolidated Fund, are located in Los Angeles County, California and Honolulu, Hawaii, and we are therefore susceptible to adverse economic and regulatory developments, as well as natural disasters, in those markets. Derivative Counterparty Credit Risk We are subject to credit risk with respect to our derivative counterparties. We do not post or receive collateral with respect to our derivative transactions. Our derivative contracts do not provide for right of offset between derivative contracts. See Note 10 for the details of our interest rate contracts. We seek to minimize our credit risk by entering into agreements with a variety of counterparties with investment grade ratings. Cash Balances We have significant cash balances invested in a variety of short-term money market funds that are intended to preserve principal value and maintain a high degree of liquidity while providing current income. These investments are not insured against loss of principal and there is no guarantee that our investments in these funds will be redeemable at par value. We also have significant cash balances in bank accounts with high quality financial institutions with investment grade ratings. Interest bearing bank accounts at each U.S. banking institution are insured by the FDIC up to $250 thousand. Asset Retirement Obligations Conditional asset retirement obligations represent a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement is conditional on a future event that may or may not be within our control. A liability for a conditional asset retirement obligation must be recorded if the fair value of the obligation can be reasonably estimated. Environmental site assessments have identified thirty-three buildings in our Consolidated Portfolio which contain asbestos, and would have to be removed in compliance with applicable environmental regulations if these properties are demolished or undergo major renovations. As of September 30, 2022, the obligations to remove the asbestos from properties which are currently undergoing major renovations, or that we plan to renovate in the future, are not material to our consolidated financial statements. As of September 30, 2022, the obligations to remove the asbestos from our other properties have indeterminable settlement dates, and we are unable to reasonably estimate the fair value of the associated conditional asset retirement obligations. Contractual Commitments Development Projects In downtown Honolulu, we are converting a 25 story, 493,000 square foot office tower into approximately 493 apartments in phases over a number of years as the office space is vacated. As of September 30, 2022, we had an aggregate remaining contractual commitment for this development project and other development projects of approximately $42.5 million. Other Contractual Commitments As of September 30, 2022, we had an aggregate remaining contractual commitment for repositionings, capital expenditure projects and tenant improvements of approximately $26.6 million. Guarantees Partnership X Guarantees Our unconsolidated Fund, Partnership X, has a $115.0 million floating-rate term loan that matures on September 14, 2028. Starting on October 1, 2021, the loan carries interest at LIBOR + 1.35% (with a zero-percent LIBOR floor), which has been effectively fixed at 2.19% until October 1, 2026 with interest rate swaps (which do not have zero-percent LIBOR floors). The loan is secured by two properties held by Partnership X and is non-recourse. We have made certain environmental and other limited indemnities and guarantees covering customary non-recourse carve-outs for Partnership X's loan, and we have also guaranteed the related swaps. Partnership X has agreed to indemnify us for any amounts that we would be required to pay under these agreements. As of September 30, 2022, assuming that LIBOR does not decrease below zero-percent, the maximum future interest payments for the swap were $3.9 million. As of September 30, 2022, all of the obligations under the related loan and swap agreements have been performed in accordance with the terms of those agreements. See Note 6 for more information regarding Partnership X. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are the consolidated financial statements of Douglas Emmett, Inc. and its subsidiaries, including our Operating Partnership and our consolidated JVs. All significant intercompany balances and transactions have been eliminated in our consolidated financial statements. We consolidate entities in which we are considered to be the primary beneficiary of a VIE or have a majority of the voting interest of the entity. We are deemed to be the primary beneficiary of a VIE when we have (i) the power to direct the activities of that VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We do not consolidate entities in which the other parties have substantive kick-out rights to remove our power to direct the activities, most significantly impacting the economic performance, of that VIE. In determining whether we are the primary beneficiary, we consider factors such as ownership interest, management representation, authority to control decisions, and contractual and substantive participating rights of each party. |
Basis of Accounting | The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC in conformity with US GAAP as established by the FASB in the ASC. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in conformity with US GAAP may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading. The accompanying unaudited interim consolidated financial statements include, in our opinion, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial information set forth therein. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in our 2021 Annual Report on Form 10-K and the notes thereto. Any references to the number or class of properties, square footage, per square footage amounts, apartment units and geography, are outside the scope of our independent registered public accounting firm’s review of our consolidated financial statements in accordance with the standards of the PCAOB. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make certain estimates that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition Rental revenues and tenant recoveries We account for our rental revenues and tenant recoveries in accordance with Topic 842 "Leases". Rental revenues and tenant recoveries are included in: (i) Rental revenues and tenant recoveries under Office rental, and (ii) Rental revenues under Multifamily rental, in our consolidated statements of operations. Collectibility In accordance with Topic 842, we perform an assessment as to whether or not substantially all of the amounts due under a tenant’s lease agreement is deemed probable of collection. This assessment involves using a methodology that requires judgment and estimates about matters that are uncertain at the time the estimates are made, including tenant specific factors, specific industry conditions, and general economic trends and conditions. For leases where we have concluded it is probable that we will collect substantially all the lease payments due under those leases, we continue to record lease income on a straight-line basis over the lease term. For leases where we have concluded that it is not probable that we will collect substantially all the lease payments due under those leases, we limit the lease income to the lesser of the income recognized on a straight-line basis or cash basis. If our conclusion of collectibility changes, we will record the difference between the lease income that would have been recognized on a straight-line basis and cash basis as a current-period adjustment to rental revenues and tenant recoveries. We write-off tenant receivables and deferred rent receivables as a charge against rental revenues and tenant recoveries in the period we conclude that substantially all of the lease payments are not probable of collection. If we subsequently collect amounts that were previously written off then the amounts collected are recorded as an increase to our rental revenues and tenant recoveries. Charges for uncollectible office tenant receivables and deferred rent receivables, which were primarily due to the impact of the COVID-19 pandemic, reduced our office revenues by: • $0.1 million and $0.3 million for the three months ended September 30, 2022 and 2021, respectively, and • $0.3 million and $2.8 million for the nine months ended September 30, 2022 and 2021, respectively. We restored accrual basis accounting for certain office tenants that were previously determined to be uncollectible and accounted for on a cash basis of accounting, which increased our office revenues by: • $1.6 million for the three months ended September 30, 2022, and • $3.3 million for the nine months ended September 30, 2022. Office parking revenues We account for our office parking revenues in accordance with ASC 606 "Revenue from Contracts with Customers". Office parking revenues are included in Parking and other income under Office rental in our consolidated statements of operations. Our lease contracts generally make a specified number of parking spaces available to the tenant, and we bill and recognize parking revenues on a monthly basis in accordance with the lease agreements, generally using the monthly parking rates in effect at the time of billing. Office parking revenues were: • $22.1 million and $19.0 million for the three months ended September 30, 2022 and 2021, respectively, and • $62.6 million and $50.1 million for the nine months ended September 30, 2022 and 2021, respectively. Office parking receivables, which are included in Tenant receivables in our consolidated balance sheets, were: • $1.0 million as of September 30, 2022, and • $0.8 million as of December 31, 2021. |
Income Taxes | Income Taxes We have elected to be taxed as a REIT under the Code. Provided that we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. We are subject to corporate-level tax on the earnings that we derive through our TRS. |
New Accounting Pronouncements | New Accounting Pronouncements Changes to US GAAP are implemented by the FASB in the form of ASUs. We consider the applicability and impact of all ASUs. As of the date of this Report, the FASB has not issued any ASUs that we expect to be applicable and have a material impact on our consolidated financial statements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our estimates of the fair value of financial instruments were determined using available market information and widely used valuation methods. Considerable judgment is necessary to interpret market data and determine an estimated fair value. The use of different market assumptions or valuation methods may have a material effect on the estimated fair values. The FASB fair value framework hierarchy distinguishes between assumptions based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market-based inputs. The hierarchy is as follows: Level 1 - inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - inputs are observable either directly or indirectly for similar assets and liabilities in active markets. |
Overview (Tables)
Overview (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Real Estate Properties | As of September 30, 2022, our portfolio (not including two parcels of land from which we receive rent under ground leases), consisted of the following properties (including ancillary retail space): Consolidated Portfolio Total Office Wholly-owned properties 53 53 Consolidated JV properties 16 16 Unconsolidated Fund properties — 2 69 71 Multifamily Wholly-owned properties 11 11 Consolidated JV properties 2 2 13 13 Total 82 84 |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of Investment in Real Estate | The table below summarizes our investment in real estate: (In thousands) September 30, 2022 December 31, 2021 Land $ 1,172,907 $ 1,150,821 Buildings and improvements (1) 9,878,871 9,344,087 Tenant improvements and lease intangibles 962,658 935,639 Property under development (1) 251,024 388,530 Investment in real estate, gross $ 12,265,460 $ 11,819,077 __________________________________________________________________________________ (1) During the nine months ended September 30, 2022, Property under development balances transferred to Building and improvements for real estate placed into service was $178.7 million. |
Schedule of Purchase Price Allocation for Acquisition | The contract price and the purchase price allocation total in the table below differ due to acquisition costs, prorations and similar adjustments: (In thousands) Purchase Price Allocation Land $ 22,086 Buildings and improvements 319,666 Tenant improvements and lease intangibles 8,879 Acquired below-market leases (18,542) Other liabilities assumed (1,619) Net assets and liabilities acquired $ 330,470 |
Ground Lease (Tables)
Ground Lease (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Lessee Disclosure [Abstract] | |
Schedule of Future Minimum Ground Lease Payments | The table below, which assumes that the ground rent payments will continue to be $733 thousand per year after February 28, 2029, presents the future minimum ground lease payments as of September 30, 2022: Twelve months ending September 30: (In thousands) 2023 $ 733 2024 733 2025 733 2026 733 2027 733 Thereafter 43,429 Total future minimum lease payments $ 47,094 |
Acquired Lease Intangibles (Tab
Acquired Lease Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Lease Intangibles | Summary of our Acquired Lease Intangibles (In thousands) September 30, 2022 December 31, 2021 Above-market tenant leases $ 5,185 $ 6,406 Above-market tenant leases - accumulated amortization (2,395) (3,132) Above-market ground lease where we are the lessor 1,152 1,152 Above-market ground lease - accumulated amortization (271) (258) Acquired lease intangible assets, net $ 3,671 $ 4,168 Below-market tenant leases $ 66,920 $ 58,209 Below-market tenant leases - accumulated accretion (32,216) (33,499) Acquired lease intangible liabilities, net $ 34,704 $ 24,710 |
Schedule of Net Amortization or Accretion of Above- and Below-Market Leases | The table below summarizes the net amortization/accretion related to our above- and below-market leases: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 Net accretion of above- and below-market tenant lease assets and liabilities (1) $ 3,348 $ 2,168 $ 8,063 $ 7,681 Amortization of an above-market ground lease asset (2) (5) (5) (13) (13) Total $ 3,343 $ 2,163 $ 8,050 $ 7,668 ______________________________________________ (1) Recorded as a net increase to office and multifamily rental revenues. (2) Recorded as a decrease to office parking and other income. |
Investment in Unconsolidated _2
Investment in Unconsolidated Fund (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate Investments, Net [Abstract] | |
Schedule of Statement of Operations for Investments in Unconsolidated Funds and Cash Received from Funds | The table below presents cash distributions we received from Partnership X: Nine Months Ended September 30, (In thousands) 2022 2021 Operating distributions received $ 921 $ 709 Capital distributions received 1,454 779 Total distributions received $ 2,375 $ 1,488 The tables below present selected financial information for Partnership X. The amounts presented reflect 100% (not our pro-rata share) of amounts related to Partnership X, and are based upon historical acquired book value: (In thousands) September 30, 2022 December 31, 2021 Total assets $ 150,059 $ 139,171 Total liabilities $ 119,598 $ 117,668 Total equity $ 30,461 $ 21,503 Nine Months Ended September 30, (In thousands) 2022 2021 Total revenues $ 13,893 $ 12,643 Operating income $ 4,361 $ 3,508 Net income $ 2,387 $ 1,801 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Assets | (In thousands) September 30, 2022 December 31, 2021 Restricted cash $ 101 $ 101 Prepaid expenses 29,909 15,936 Indefinite-lived intangibles 1,988 1,988 Furniture, fixtures and equipment, net 2,446 2,499 Other 4,079 5,197 Total other assets $ 38,523 $ 25,721 |
Secured Notes Payable and Rev_2
Secured Notes Payable and Revolving Credit Facility, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Secured Notes Payable and Revolving Credit Facility | Description Maturity Date (1) Principal Balance as of September 30, 2022 Principal Balance as of December 31, 2021 Variable Interest Rate Fixed Interest Rate (2) Swap Maturity Date (In thousands) Consolidated Wholly Owned Subsidiaries Term loan (3)(4) 3/3/2025 $ 335,000 $ 335,000 LIBOR + 1.30% 3.84% 3/1/2023 Fannie Mae loan (3)(4) 4/1/2025 102,400 102,400 LIBOR + 1.25% 2.76% 3/1/2023 Term loan (3) 8/15/2026 415,000 415,000 LIBOR + 1.10% 3.07% 8/1/2025 Term loan (3) 9/19/2026 400,000 400,000 LIBOR + 1.15% 2.44% 9/1/2024 Term loan (3) 9/26/2026 200,000 200,000 LIBOR + 1.20% 2.36% 10/1/2024 Term loan (3) 11/1/2026 400,000 400,000 LIBOR + 1.15% 2.31% 10/1/2024 Fannie Mae loan (3)(5) 6/1/2027 550,000 550,000 LIBOR + 1.37% N/A N/A Term loan (3) 5/18/2028 300,000 300,000 LIBOR + 1.40% 2.21% 6/1/2026 Term loan (3)(6) 1/1/2029 300,000 300,000 SOFR + 1.56% 2.66% 1/1/2027 Fannie Mae loan (3) 6/1/2029 255,000 255,000 LIBOR + 0.98% 3.26% 6/1/2027 Fannie Mae loan (3) 6/1/2029 125,000 125,000 LIBOR + 0.98% 3.25% 6/1/2027 Term loan (7) 6/1/2038 28,711 29,325 N/A 4.55% N/A Revolving credit facility (8) 8/21/2023 — — LIBOR + 1.15% N/A N/A Total Wholly Owned Subsidiary Debt 3,411,111 3,411,725 Consolidated JVs Term loan (3)(4) 12/19/2024 400,000 400,000 LIBOR + 1.30% 3.47% 1/1/2023 Term loan (3)(9) 5/15/2027 450,000 450,000 LIBOR + 1.35% 2.26% 4/1/2025 Term loan (3) 8/19/2028 625,000 625,000 LIBOR + 1.35% 2.12% 6/1/2025 Term loan (3)(10) 4/26/2029 175,000 — SOFR + 1.25% 3.90% 5/1/2026 Fannie Mae loan (3) 6/1/2029 160,000 160,000 LIBOR + 0.98% 3.25% 7/1/2027 Total Consolidated Debt (11) 5,221,111 5,046,725 Unamortized loan premium, net (12) 3,663 4,007 Unamortized deferred loan costs, net (13) (34,169) (38,656) Total Consolidated Debt, net $ 5,190,605 $ 5,012,076 _______________________________________________________________________ Except as noted below, our loans and revolving credit facility: (i) are non-recourse, (ii) are secured by separate collateral pools consisting of one or more properties, (iii) require interest-only monthly payments with the outstanding principal due upon maturity, and (iv) contain certain financial covenants which could require us to deposit excess cash flow with the lender under certain circumstances unless we (at our option) either provide a guarantee or additional collateral or pay down the loan within certain parameters set forth in the loan documents. Certain loans with maturity date extension options require us to meet minimum financial thresholds in order to extend the loan maturity date. (1) Maturity dates include extension options. (2) Effective rate as of September 30, 2022. Includes the effect of interest rate swaps and excludes the effect of prepaid loan fees and loan premiums. See Note 10 for details of our interest rate swaps. See further below for details of our loan costs and loan premiums. (3) The loan agreement includes a zero-percent LIBOR or SOFR floor. If the loan is swap-fixed then the related swaps do not include such a floor. (4) The related swaps expire in 2023. The loans (in order of the table) have the following LIBOR credit spreads: 1.30%, 1.25% and 1.30%. (5) The swaps expired on June 1, 2022. (6) The effective rate decreased from 3.42% to 2.66% on January 1, 2022 when a new swap replaced old swaps that expired. (7) The loan requires monthly payments of principal and interest. Principal amortization is based upon a 30-year amortization schedule. (8) $400.0 million revolving credit facility. Unused commitment fees range from 0.10% to 0.15%. The facility has a zero-percent LIBOR floor. (9) The effective rate decreased from 3.04% to 2.26% on July 1, 2022 when existing swaps were upsized to replace swaps that expired. (10) We closed this loan during the second quarter of 2022 in connection with the acquisition of a residential property, see Note 3. (11) The table does not include our unconsolidated Fund's loan - see Note 16. See Note 13 for our fair value disclosures. (12) Balances are net of accumulated amortization of $3.5 million and $3.2 million at September 30, 2022 and December 31, 2021, respectively. (13) Balances are net of accumulated amortization of $52.0 million and $46.3 million at September 30, 2022 and December 31, 2021, respectively. Debt Statistics The table below summarizes our consolidated fixed and floating rate debt: (In thousands) Principal Balance as of September 30, 2022 Principal Balance as of December 31, 2021 Aggregate swapped to fixed rate loans $ 4,642,400 $ 5,017,400 Aggregate fixed rate loans 28,711 29,325 Aggregate floating rate loans 550,000 — Total Debt $ 5,221,111 $ 5,046,725 The table below summarizes certain consolidated debt statistics as of September 30, 2022: Statistics for consolidated loans with interest fixed under the terms of the loan or a swap Principal balance (in billions) $4.67 Weighted average remaining life (including extension options) 4.7 years Weighted average remaining fixed interest period 2.6 years Weighted average annual interest rate 2.82% |
Schedule of Future Minimum Principal Payments Due on Secured Notes Payable and Revolving Credit Facility | At September 30, 2022, the minimum future principal payments due on our consolidated secured notes payable and revolving credit facility were as follows: Twelve months ending September 30: Including Maturity Extension Options (1) (In thousands) 2023 $ 852 2024 891 2025 838,333 2026 1,015,976 2027 1,401,022 Thereafter 1,964,037 Total future principal payments $ 5,221,111 ________________________________________________ (1) Some of our loan agreements require that we meet certain minimum financial thresholds to be able to extend the loan maturity. |
Schedule of Loan Costs and Amortization of Deferred Loan Costs | The table below presents loan premium and loan costs, which are included in Interest expense in our consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 Loan premium amortized and written off $ (116) $ (116) $ (344) $ (344) Deferred loan costs amortized and written off 2,030 3,939 5,908 8,131 Loan costs expensed 8 173 110 208 Total $ 1,922 $ 3,996 $ 5,674 $ 7,995 |
Interest Payable, Accounts Pa_2
Interest Payable, Accounts Payable and Deferred Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Interest Payable, Accounts Payable and Deferred Revenue | (In thousands) September 30, 2022 December 31, 2021 Interest payable $ 12,584 $ 12,254 Accounts payable and accrued liabilities 100,511 83,150 Deferred revenue 46,763 50,056 Total interest payable, accounts payable and deferred revenue $ 159,858 $ 145,460 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swap Derivatives | The table below summarizes our derivative contracts as of September 30, 2022: Number of Interest Rate Contracts Notional Derivatives Designated as Cash Flow Hedges: Consolidated derivatives - swaps (1)(3)(5) 30 $ 4,642,400 Unconsolidated Fund's derivatives - swaps (2)(3)(5) 2 $ 115,000 Derivatives Not Designated as Cash Flow Hedges: Consolidated derivatives - caps (3)(4)(5) 5 $ 1,100,000 ___________________________________________________ (1) The notional amount includes 100%, not our pro-rata share, of our consolidated JVs' derivatives. (2) The notional amount reflects 100%, not our pro-rata share, of our unconsolidated Fund's derivatives. For more information about our Fund, including our equity interest percentage see Note 6. (3) Our derivative contracts do not provide for right of offset between derivative contracts. (4) Includes four interest rate caps purchased with a notional amount of $550.0 million and one interest rate cap sold with a notional amount of $550.0 million. (5) See Note 13 for our derivative fair value disclosures. |
Schedule of Fair Value of Interest Rate Swap Contract Liabilities | The fair value of our interest rate swap contract liabilities, including accrued interest and excluding credit risk adjustments, was as follows: (In thousands) September 30, 2022 December 31, 2021 Consolidated derivatives (1)(2) $ — $ 77,760 Unconsolidated Fund's derivatives (3) $ — $ — ___________________________________________________ (1) The amounts include 100%, not our pro-rata share, of our consolidated JVs' derivatives. (2) We did not have any consolidated swaps in a liability position as of September 30, 2022. (3) Our unconsolidated Fund did not have any swaps in a liability position for the periods presented. For more information about our Fund, including our equity interest percentage, see Note 6. |
Schedule of Fair Value of Interest Rate Swap Contract Assets | The fair value of our interest rate swap and cap contract assets, including accrued interest and excluding credit risk adjustments, was as follows: (In thousands) September 30, 2022 December 31, 2021 Consolidated derivatives (1) $ 293,568 $ 14,927 Unconsolidated Fund's derivatives (2) $ 13,627 $ 1,889 ___________________________________________________ (1) The amounts include 100%, not our pro-rata share, of our consolidated JVs' derivatives. (2) The amounts reflect 100%, not our pro-rata share, of our unconsolidated Fund's derivatives. For more information about our Fund, including our equity interest percentage, see Note 6. |
Schedule of Effect of Derivative Instruments on Consolidated Statements of Operations | The table below presents the effect of our derivatives on our AOCI and the consolidated statements of operations: (In thousands) Nine Months Ended September 30, 2022 2021 Derivatives Designated as Cash Flow Hedges: Consolidated derivatives: Gains recorded in AOCI before reclassifications (1) $ 318,408 $ 44,262 Losses reclassified from AOCI to Interest Expense (1) $ 20,505 $ 55,951 Interest Expense presented in the consolidated statements of operations $ (109,560) $ (110,018) Unconsolidated Fund's derivative (our share) (2) : Gains recorded in AOCI before reclassifications (1) $ 3,777 $ 192 (Gains) losses reclassified from AOCI to Income from unconsolidated Fund (1) $ (62) $ 46 Income from unconsolidated Fund presented in the consolidated statements of operations $ 921 $ 713 Derivatives Not Designated as Cash Flow Hedges: Consolidated derivatives: Loss recorded as interest expense $ 38 $ — ___________________________________________________ (1) See Note 11 for our AOCI reconciliation. (2) We calculate our share by multiplying the total amount for the Fund by our equity interest in the Fund. For more information about our Fund, including our equity interest percentage, see Note 6. |
Schedule of Future Reclassifications from AOCI | At September 30, 2022, our estimate of the AOCI related to derivatives designated as cash flow hedges that will be reclassified to earnings during the next twelve months as interest rate swap payments are made is as follows: (In thousands) Consolidated derivatives: Gains to be reclassified from AOCI to Interest Expense $ 114,921 Unconsolidated Fund's derivative (our share) (1) : Gains to be reclassified from AOCI to Income from unconsolidated Fund $ 1,333 ___________________________________________________ (1) We calculate our share by multiplying the total amount for the Fund by our equity interest in the Fund. For more information about our Fund, including our equity interest percentage, see Note 6. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Net Income Attributable to Common Stockholders and Transfers (to) from Noncontrolling Interests | The table below presents the effect on our equity from net income attributable to common stockholders and changes in our ownership interest in our Operating Partnership: Nine Months Ended September 30, (In thousands) 2022 2021 Net income attributable to common stockholders $ 72,843 $ 45,939 Transfers from noncontrolling interests: Exchange of OP Units with noncontrolling interests 4,236 354 Repurchase of OP Units from noncontrolling interests (176) (53) Net transfers from noncontrolling interests 4,060 301 Change from net income attributable to common stockholders and transfers from noncontrolling interests $ 76,903 $ 46,240 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below presents a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges: Nine Months Ended September 30, (In thousands) 2022 2021 Accumulated Other Comprehensive Loss - Beginning balance $ (38,774) $ (148,035) Consolidated derivatives: Other comprehensive income before reclassifications 318,408 44,262 Reclassification of losses from AOCI to Interest Expense 20,505 55,951 Unconsolidated Fund's derivatives (our share) (2) : Other comprehensive income before reclassifications 3,777 192 Reclassification of (gains) losses from AOCI to Income from unconsolidated Fund (62) 46 Net current period OCI 342,628 100,451 OCI attributable to noncontrolling interests (104,205) (31,955) OCI attributable to common stockholders 238,423 68,496 Accumulated Other Comprehensive Income (Loss) - Ending balance $ 199,649 $ (79,539) ___________________________________________________ (1) See Note 10 for the details of our derivatives and Note 13 for our derivative fair value disclosures. (2) We calculate our share by multiplying the total amount for the Fund by our equity interest in the Fund. |
Schedule of Stock-based Compensation Expense | The table below presents our stock-based compensation expense: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 Stock-based compensation expense, net $ 2,266 $ 2,317 $ 7,156 $ 7,358 Capitalized stock-based compensation $ 826 $ 779 $ 2,455 $ 2,253 |
EPS (Tables)
EPS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The table below presents the calculation of basic and diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator (In thousands): Net income attributable to common stockholders $ 22,955 $ 18,141 $ 72,843 $ 45,939 Allocation to participating securities: Unvested LTIP Units (218) (212) (666) (645) Net income attributable to common stockholders - basic and diluted $ 22,737 $ 17,929 $ 72,177 $ 45,294 Denominator (In thousands): Weighted average shares of common stock outstanding - basic and diluted (1) 175,784 175,480 175,742 175,472 Net income per common share - basic and diluted $ 0.13 $ 0.10 $ 0.41 $ 0.26 ____________________________________________________ (1) Outstanding OP Units and vested LTIP Units are not included in the denominator in calculating diluted EPS, even though they may be exchanged under certain conditions for common stock on a one-for-one basis, because their associated net income (equal on a per unit basis to the Net income per common share - diluted) was already deducted in calculating Net income attributable to common stockholders. Accordingly, any exchange would not have any effect on diluted EPS. The table below presents the weighted average OP Units and vested LTIP Units outstanding for the respective periods: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 OP Units 30,158 28,630 29,626 28,343 Vested LTIP Units 690 1,454 1,255 1,735 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Value and Carrying Value of Liabilities | The table below presents the estimated fair value and carrying value of our secured notes payable (excluding our revolving credit facility), the carrying value includes unamortized loan premium and excludes unamortized deferred loan fees: (In thousands) September 30, 2022 December 31, 2021 Fair value $ 5,106,272 $ 5,017,494 Carrying value $ 5,224,774 $ 5,050,732 (In thousands) September 30, 2022 December 31, 2021 Fair value $ 4,525 $ 8,861 Carrying value $ 10,852 $ 10,860 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents the estimated fair value of our derivatives: (In thousands) September 30, 2022 December 31, 2021 Derivative Assets: Fair value - consolidated derivatives (1) $ 286,890 $ 15,473 Fair value - unconsolidated Fund's derivatives (2) $ 13,268 $ 1,963 Derivative Liabilities: Fair value - consolidated derivatives (1) $ 1,647 $ 69,930 Fair value - unconsolidated Fund's derivatives (2) $ — $ — ____________________________________________________ (1) Consolidated derivatives, which include 100%, not our pro-rata share, of our consolidated JVs' derivatives, are included in interest rate contracts in our consolidated balance sheets. The fair values exclude accrued interest which is included in interest payable in the consolidated balance sheets. (2) The amounts reflect 100%, not our pro-rata share, of our unconsolidated Fund's derivatives. Our pro-rata share of the amounts related to the unconsolidated Fund's derivatives is included in our Investment in unconsolidated Fund in our consolidated balance sheets. Our unconsolidated Fund did not have any derivatives in a liability position for the periods presented. See Note 6 for more information about our Fund, including our equity interest percentage, and see "Guarantees" in Note 16 regarding our Fund's derivatives. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Operating Activity of Reportable Segments | The table below presents the operating activity of our reportable segments: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Office Segment Total office revenues $ 207,927 $ 203,856 $ 616,744 $ 582,425 Office expenses (74,653) (70,026) (212,006) (195,745) Office segment profit 133,274 133,830 404,738 386,680 Multifamily Segment Total multifamily revenues 45,736 34,388 122,771 97,120 Multifamily expenses (13,661) (9,666) (35,729) (28,228) Multifamily segment profit 32,075 24,722 87,042 68,892 Total profit from all segments $ 165,349 $ 158,552 $ 491,780 $ 455,572 |
Reconciliation of Segment Profit to Net Income Attributable to Common Stockholders | The table below presents a reconciliation of the total profit from all segments to net income attributable to common stockholders: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Total profit from all segments $ 165,349 $ 158,552 $ 491,780 $ 455,572 General and administrative expenses (11,272) (11,435) (34,173) (30,564) Depreciation and amortization (96,276) (93,104) (279,588) (279,801) Other income 1,649 498 2,490 2,178 Other expenses (199) (147) (561) (764) Income from unconsolidated Fund 356 260 921 713 Interest expense (38,394) (38,878) (109,560) (110,018) Net income 21,213 15,746 71,309 37,316 Net loss attributable to noncontrolling interests 1,742 2,395 1,534 8,623 Net income attributable to common stockholders $ 22,955 $ 18,141 $ 72,843 $ 45,939 |
Future Minimum Lease Rental R_2
Future Minimum Lease Rental Receipts (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Lessor Disclosure [Abstract] | |
Schedule of Future Minimum Base Rentals on Non-Cancelable Office and Ground Operating Leases | The table below presents the future minimum base rentals on our non-cancelable office tenant and ground leases for our consolidated properties at September 30, 2022: Twelve months ending September 30: (In thousands) 2023 $ 623,700 2024 538,724 2025 430,771 2026 335,745 2027 260,602 Thereafter 716,131 Total future minimum base rentals (1) $ 2,905,673 ___________________________________ (1) Does not include (i) residential leases, which typically have a term of one year or less, (ii) holdover rent, (iii) other types of rent such as storage and antenna rent, (iv) tenant reimbursements, (v) straight-line rent, (vi) amortization/accretion of acquired above/below-market lease intangibles and (vii) percentage rents. The amounts assume that early termination options held by tenants will not be exercised. |
Overview - Narrative (Details)
Overview - Narrative (Details) $ in Thousands, ft² in Millions | Sep. 30, 2022 USD ($) ft² parcel venture unit | Apr. 26, 2022 unit | Dec. 31, 2021 USD ($) |
Real Estate Properties [Line Items] | |||
Principal balance | $ 5,221,111 | $ 5,046,725 | |
Number of joint ventures consolidated | venture | 4 | ||
Consolidated assets | $ 9,805,735 | 9,354,032 | |
Investment in real estate, net | 9,014,428 | 8,790,432 | |
Consolidated liabilities | 5,508,002 | 5,367,479 | |
Secured notes payable and revolving credit facility, net | 5,190,605 | 5,012,076 | |
Wholly Owned Subsidiaries | |||
Real Estate Properties [Line Items] | |||
Principal balance | 3,411,111 | 3,411,725 | |
Consolidated entities | |||
Real Estate Properties [Line Items] | |||
Consolidated assets | 3,970,000 | 3,560,000 | |
Investment in real estate, net | 3,550,000 | 3,280,000 | |
Consolidated liabilities | 1,900,000 | 1,720,000 | |
Secured notes payable and revolving credit facility, net | $ 1,810,000 | $ 1,640,000 | |
Wholly owned and Consolidated properties | |||
Real Estate Properties [Line Items] | |||
Number of properties subject to ground leases | parcel | 2 | ||
Office Buildings | Wholly owned and Consolidated properties | |||
Real Estate Properties [Line Items] | |||
Area of real estate portfolio (sq ft) | ft² | 17.7 | ||
Office Buildings | Unconsolidated Fund properties | |||
Real Estate Properties [Line Items] | |||
Area of real estate portfolio (sq ft) | ft² | 0.4 | ||
Multifamily | |||
Real Estate Properties [Line Items] | |||
Number of multifamily apartment units | unit | 120 | ||
Multifamily | Wholly owned and Consolidated properties | |||
Real Estate Properties [Line Items] | |||
Number of multifamily apartment units | unit | 4,610 |
Overview - Schedule of Properti
Overview - Schedule of Properties Portfolio (Details) - property | Sep. 30, 2022 | Sep. 30, 2021 |
Real Estate Properties [Line Items] | ||
Number of properties | 84 | |
Office | ||
Real Estate Properties [Line Items] | ||
Number of properties | 71 | |
Office | Wholly-owned properties | ||
Real Estate Properties [Line Items] | ||
Number of properties | 53 | |
Office | Consolidated JV properties | ||
Real Estate Properties [Line Items] | ||
Number of properties | 16 | |
Office | Unconsolidated Fund properties | ||
Real Estate Properties [Line Items] | ||
Number of properties | 2 | 2 |
Multifamily | ||
Real Estate Properties [Line Items] | ||
Number of properties | 13 | |
Multifamily | Wholly-owned properties | ||
Real Estate Properties [Line Items] | ||
Number of properties | 11 | |
Multifamily | Consolidated JV properties | ||
Real Estate Properties [Line Items] | ||
Number of properties | 2 | |
Consolidated Portfolio | ||
Real Estate Properties [Line Items] | ||
Number of properties | 82 | |
Consolidated Portfolio | Office | ||
Real Estate Properties [Line Items] | ||
Number of properties | 69 | |
Consolidated Portfolio | Office | Wholly-owned properties | ||
Real Estate Properties [Line Items] | ||
Number of properties | 53 | |
Consolidated Portfolio | Office | Consolidated JV properties | ||
Real Estate Properties [Line Items] | ||
Number of properties | 16 | |
Consolidated Portfolio | Office | Unconsolidated Fund properties | ||
Real Estate Properties [Line Items] | ||
Number of properties | 0 | |
Consolidated Portfolio | Multifamily | ||
Real Estate Properties [Line Items] | ||
Number of properties | 13 | |
Consolidated Portfolio | Multifamily | Wholly-owned properties | ||
Real Estate Properties [Line Items] | ||
Number of properties | 11 | |
Consolidated Portfolio | Multifamily | Consolidated JV properties | ||
Real Estate Properties [Line Items] | ||
Number of properties | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Real Estate Properties [Line Items] | |||||
Charge for uncollectible amounts | $ 100 | $ 300 | $ 300 | $ 2,800 | |
Revenues | 253,663 | 238,244 | 739,515 | 679,545 | |
Office parking revenue | 22,100 | $ 19,000 | 62,600 | $ 50,100 | |
Office parking receivables | 1,000 | 1,000 | $ 800 | ||
Office Revenues | |||||
Real Estate Properties [Line Items] | |||||
Revenues | $ 1,600 | $ 3,300 |
Investment in Real Estate - Inv
Investment in Real Estate - Investment in Real Estate (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Real Estate Properties [Line Items] | ||
Land | $ 1,172,907 | $ 1,150,821 |
Buildings and improvements | 9,878,871 | 9,344,087 |
Tenant improvements and lease intangibles | 962,658 | 935,639 |
Property under development | 251,024 | 388,530 |
Investment in real estate, gross | 12,265,460 | $ 11,819,077 |
Building Improvements | ||
Real Estate Properties [Line Items] | ||
Property under development balances transferred to Building and improvements for real estate placed into service | $ 178,700 |
Investment in Real Estate - Nar
Investment in Real Estate - Narrative (Details) $ in Millions | 9 Months Ended | |
Apr. 26, 2022 USD ($) unit | Sep. 30, 2022 | |
Variable Interest Entity, Primary Beneficiary | ||
Schedule Of Asset Acquisitions [Line Items] | ||
Capital interest in consolidated JV (percent) | 55% | 55% |
Multifamily | ||
Schedule Of Asset Acquisitions [Line Items] | ||
Payments to acquire real estate property | $ | $ 330 | |
Number of multifamily apartment units | unit | 120 |
Investment in Real Estate - Acq
Investment in Real Estate - Acquisitions (Details) - 1221 Ocean Avenue $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Schedule Of Asset Acquisitions [Line Items] | |
Tenant improvements and lease intangibles | $ 8,879 |
Acquired below-market leases | (18,542) |
Other liabilities assumed | (1,619) |
Net assets and liabilities acquired | 330,470 |
Land | |
Schedule Of Asset Acquisitions [Line Items] | |
Land, Buildings and improvements | 22,086 |
Buildings and improvements | |
Schedule Of Asset Acquisitions [Line Items] | |
Land, Buildings and improvements | $ 319,666 |
Ground Lease - Narrative (Detai
Ground Lease - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Lessee Disclosure [Abstract] | |||||
Fixed rent payments due per year on ground lease | $ 733 | $ 733 | |||
Ground lease right-of-use asset | 7,458 | 7,458 | $ 7,464 | ||
Ground lease liability | 10,852 | 10,852 | $ 10,860 | ||
Ground rent expense | $ 183 | $ 183 | $ 548 | $ 548 |
Ground Lease - Future Minimum G
Ground Lease - Future Minimum Ground Lease Payments (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Future minimum ground lease payments for twelve months ending September 30: | |
2023 | $ 733 |
2024 | 733 |
2025 | 733 |
2026 | 733 |
2027 | 733 |
Thereafter | 43,429 |
Total future minimum lease payments | $ 47,094 |
Acquired Lease Intangibles - Su
Acquired Lease Intangibles - Summary of Acquired Lease Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired lease intangible assets, net | $ 3,671 | $ 4,168 |
Acquired lease intangible liabilities, net | 34,704 | 24,710 |
Above Market Tenant Leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Off-market lease, assets | 5,185 | 6,406 |
Accumulated amortization | (2,395) | (3,132) |
Above Market Ground Leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Off-market lease, assets | 1,152 | 1,152 |
Accumulated amortization | (271) | (258) |
Below Market Tenant Leases | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Below-market tenant leases | 66,920 | 58,209 |
Below-market tenant leases - accumulated accretion | $ (32,216) | $ (33,499) |
Acquired Lease Intangibles - Im
Acquired Lease Intangibles - Impact on Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total | $ 3,343 | $ 2,163 | $ 8,050 | $ 7,668 |
Rental revenues | Tenant Lease | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total | 3,348 | 2,168 | 8,063 | 7,681 |
Office parking and other income | Above Market Ground Leases | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total | $ (5) | $ (5) | $ (13) | $ (13) |
Investment in Unconsolidated _3
Investment in Unconsolidated Fund - Narrative (Details) ft² in Millions | Sep. 30, 2022 ft² property | Sep. 30, 2021 property |
Schedule of Equity Method Investments [Line Items] | ||
Number of properties | 84 | |
Percentage of amounts related to the Fund | 100% | |
Office Buildings | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of properties | 71 | |
Office Buildings | Unconsolidated Fund properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of properties | 2 | 2 |
Area of real estate portfolio (sq ft) | ft² | 0.4 | |
Partnership X | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest of the fund (percent) | 33.50% | 33.50% |
Investment in Unconsolidated _4
Investment in Unconsolidated Fund - Summary of Cash Distributions Received from Funds (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Real Estate Investments, Net [Abstract] | ||
Operating distributions received | $ 921 | $ 709 |
Capital distributions received | 1,454 | 779 |
Total distributions received | $ 2,375 | $ 1,488 |
Investment in Unconsolidated _5
Investment in Unconsolidated Fund - Selected Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Balance Sheet | |||||
Total assets | $ 9,805,735 | $ 9,805,735 | $ 9,354,032 | ||
Total liabilities | 5,508,002 | 5,508,002 | 5,367,479 | ||
Total equity | 2,583,739 | 2,583,739 | 2,416,069 | ||
Statement of Operations | |||||
Total revenues | 253,663 | $ 238,244 | 739,515 | $ 679,545 | |
Net income | 22,955 | $ 18,141 | 72,843 | 45,939 | |
Unconsolidated Funds | |||||
Balance Sheet | |||||
Total assets | 150,059 | 150,059 | 139,171 | ||
Total liabilities | 119,598 | 119,598 | 117,668 | ||
Total equity | $ 30,461 | 30,461 | $ 21,503 | ||
Statement of Operations | |||||
Total revenues | 13,893 | 12,643 | |||
Operating income | 4,361 | 3,508 | |||
Net income | $ 2,387 | $ 1,801 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Other Assets [Abstract] | |||
Restricted cash | $ 101 | $ 101 | $ 101 |
Prepaid expenses | 29,909 | 15,936 | |
Indefinite-lived intangibles | 1,988 | 1,988 | |
Furniture, fixtures and equipment, net | 2,446 | 2,499 | |
Other | 4,079 | 5,197 | |
Total other assets | $ 38,523 | $ 25,721 |
Secured Notes Payable and Rev_3
Secured Notes Payable and Revolving Credit Facility, Net - Schedule of Secured Notes Payable and Revolving Credit Facility (Details) | 9 Months Ended | |
Sep. 30, 2022 USD ($) property | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||
Total consolidated debt | $ 5,221,111,000 | $ 5,046,725,000 |
Unamortized loan premium, net | 3,663,000 | 4,007,000 |
Unamortized deferred loan costs, net | (34,169,000) | (38,656,000) |
Total Consolidated Debt, net | $ 5,190,605,000 | 5,012,076,000 |
Minimum number of separate collateral pools used to secure loans | property | 1 | |
Loan premium accumulated amortization | $ 3,500,000 | 3,200,000 |
Accumulated amortization on deferred loan costs | $ 52,000,000 | 46,300,000 |
Secured Debt | LIBOR | ||
Debt Instrument [Line Items] | ||
Loan agreement LIBOR floor | 0% | |
Secured Debt | Term Loan at 4.55% Jun 01 2038 | ||
Debt Instrument [Line Items] | ||
Principal amortization period (in years) | 30 years | |
Floating rate term loan | Partnership X | ||
Debt Instrument [Line Items] | ||
Maturity date | Sep. 14, 2028 | |
Total consolidated debt | $ 115,000,000 | |
Loan agreement LIBOR floor | 0% | |
Floating rate term loan | LIBOR | Partnership X | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.35% | |
Wholly Owned Subsidiaries | ||
Debt Instrument [Line Items] | ||
Total consolidated debt | $ 3,411,111,000 | 3,411,725,000 |
Wholly Owned Subsidiaries | Secured Debt | Term Loan at 3.84% Mar 03 2025 | ||
Debt Instrument [Line Items] | ||
Maturity date | Mar. 03, 2025 | |
Total consolidated debt | $ 335,000,000 | 335,000,000 |
Fixed interest rate | 3.84% | |
Swap Maturity Date | Mar. 01, 2023 | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan at 3.84% Mar 03 2025 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.30% | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loan at 2.76% Apr 01 2025 | ||
Debt Instrument [Line Items] | ||
Maturity date | Apr. 01, 2025 | |
Total consolidated debt | $ 102,400,000 | 102,400,000 |
Fixed interest rate | 2.76% | |
Swap Maturity Date | Mar. 01, 2023 | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loan at 2.76% Apr 01 2025 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.25% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan at 3.07% Aug 15 2026 | ||
Debt Instrument [Line Items] | ||
Maturity date | Aug. 15, 2026 | |
Total consolidated debt | $ 415,000,000 | 415,000,000 |
Fixed interest rate | 3.07% | |
Swap Maturity Date | Aug. 01, 2025 | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan at 3.07% Aug 15 2026 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.10% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan at 2.44% Sep 19 2026 | ||
Debt Instrument [Line Items] | ||
Maturity date | Sep. 19, 2026 | |
Total consolidated debt | $ 400,000,000 | 400,000,000 |
Fixed interest rate | 2.44% | |
Swap Maturity Date | Sep. 01, 2024 | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan at 2.44% Sep 19 2026 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.15% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan at 2.36% Sep 26 2026 | ||
Debt Instrument [Line Items] | ||
Maturity date | Sep. 26, 2026 | |
Total consolidated debt | $ 200,000,000 | 200,000,000 |
Fixed interest rate | 2.36% | |
Swap Maturity Date | Oct. 01, 2024 | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan at 2.36% Sep 26 2026 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.20% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan at 2.31% Nov 01 2026 | ||
Debt Instrument [Line Items] | ||
Maturity date | Nov. 01, 2026 | |
Total consolidated debt | $ 400,000,000 | 400,000,000 |
Fixed interest rate | 2.31% | |
Swap Maturity Date | Oct. 01, 2024 | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan at 2.31% Nov 01 2026 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.15% | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loan, 1.37% | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 01, 2027 | |
Total consolidated debt | $ 550,000,000 | 550,000,000 |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loan, 1.37% | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.37% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan at 2.21% May 18 2028 | ||
Debt Instrument [Line Items] | ||
Maturity date | May 18, 2028 | |
Total consolidated debt | $ 300,000,000 | 300,000,000 |
Fixed interest rate | 2.21% | |
Swap Maturity Date | Jun. 01, 2026 | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan at 2.21% May 18 2028 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.40% | |
Wholly Owned Subsidiaries | Secured Debt | Term loan at 2.66% January 1, 2029 | ||
Debt Instrument [Line Items] | ||
Maturity date | Jan. 01, 2029 | |
Total consolidated debt | $ 300,000,000 | $ 300,000,000 |
Swap Maturity Date | Jan. 01, 2027 | |
Wholly Owned Subsidiaries | Secured Debt | Term loan at 2.66% January 1, 2029 | Minimum | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 3.04% | 3.42% |
Wholly Owned Subsidiaries | Secured Debt | Term loan at 2.66% January 1, 2029 | Maximum | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 2.66% | |
Wholly Owned Subsidiaries | Secured Debt | Term loan at 2.66% January 1, 2029 | SOFR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.56% | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loan at 3.26% Jun 01 2029 | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 01, 2029 | |
Total consolidated debt | $ 255,000,000 | $ 255,000,000 |
Fixed interest rate | 3.26% | |
Swap Maturity Date | Jun. 01, 2027 | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loan at 3.26% Jun 01 2029 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.98% | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loan at 3.25% Jun 01 2029 | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 01, 2029 | |
Total consolidated debt | $ 125,000,000 | 125,000,000 |
Fixed interest rate | 3.25% | |
Swap Maturity Date | Jun. 01, 2027 | |
Wholly Owned Subsidiaries | Secured Debt | Fannie Mae Loan at 3.25% Jun 01 2029 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.98% | |
Wholly Owned Subsidiaries | Secured Debt | Term Loan at 4.55% Jun 01 2038 | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 01, 2038 | |
Total consolidated debt | $ 28,711,000 | 29,325,000 |
Fixed interest rate | 4.55% | |
Wholly Owned Subsidiaries | Line of Credit | Revolving Credit Facility with Maturity Aug 21 2023 | ||
Debt Instrument [Line Items] | ||
Maturity date | Aug. 21, 2023 | |
Total consolidated debt | $ 0 | 0 |
Debt instrument, face amount | $ 400,000,000 | |
Wholly Owned Subsidiaries | Line of Credit | Revolving Credit Facility with Maturity Aug 21 2023 | Minimum | ||
Debt Instrument [Line Items] | ||
Unused commitment fees (as a percent) | 0.10% | |
Wholly Owned Subsidiaries | Line of Credit | Revolving Credit Facility with Maturity Aug 21 2023 | Maximum | ||
Debt Instrument [Line Items] | ||
Unused commitment fees (as a percent) | 0.15% | |
Wholly Owned Subsidiaries | Line of Credit | Revolving Credit Facility with Maturity Aug 21 2023 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.15% | |
Consolidated JV | Secured Debt | Term Loan at 3.47% Dec 19 2024 | ||
Debt Instrument [Line Items] | ||
Maturity date | Dec. 19, 2024 | |
Total consolidated debt | $ 400,000,000 | 400,000,000 |
Fixed interest rate | 3.47% | |
Swap Maturity Date | Jan. 01, 2023 | |
Consolidated JV | Secured Debt | Term Loan at 3.47% Dec 19 2024 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.30% | |
Consolidated JV | Secured Debt | Term Loan at 3.04% May 15 2027 | ||
Debt Instrument [Line Items] | ||
Maturity date | May 15, 2027 | |
Total consolidated debt | $ 450,000,000 | 450,000,000 |
Fixed interest rate | 2.26% | |
Swap Maturity Date | Apr. 01, 2025 | |
Consolidated JV | Secured Debt | Term Loan at 3.04% May 15 2027 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.35% | |
Consolidated JV | Secured Debt | Term Loan at 2.12% Aug 19 2028 | ||
Debt Instrument [Line Items] | ||
Maturity date | Aug. 19, 2028 | |
Total consolidated debt | $ 625,000,000 | 625,000,000 |
Fixed interest rate | 2.12% | |
Swap Maturity Date | Jun. 01, 2025 | |
Consolidated JV | Secured Debt | Term Loan at 2.12% Aug 19 2028 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.35% | |
Consolidated JV | Secured Debt | Term Loan at 3.90% Apr 26 2029 | ||
Debt Instrument [Line Items] | ||
Maturity date | Apr. 26, 2029 | |
Total consolidated debt | $ 175,000,000 | 0 |
Fixed interest rate | 3.90% | |
Swap Maturity Date | May 01, 2026 | |
Consolidated JV | Secured Debt | Term Loan at 3.90% Apr 26 2029 | SOFR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.25% | |
Consolidated JV | Secured Debt | Fannie Mae at 3.25% Jun 01 2029 | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 01, 2029 | |
Total consolidated debt | $ 160,000,000 | $ 160,000,000 |
Fixed interest rate | 3.25% | |
Swap Maturity Date | Jul. 01, 2027 | |
Consolidated JV | Secured Debt | Fannie Mae at 3.25% Jun 01 2029 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.98% |
Secured Notes Payable and Rev_4
Secured Notes Payable and Revolving Credit Facility, Net - Debt by Type (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal balance | $ 5,221,111 | $ 5,046,725 |
Aggregate swapped to fixed rate loans | ||
Debt Instrument [Line Items] | ||
Principal balance | 4,642,400 | 5,017,400 |
Aggregate fixed rate loans | ||
Debt Instrument [Line Items] | ||
Principal balance | 28,711 | 29,325 |
Aggregate floating rate loans | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 550,000 | $ 0 |
Secured Notes Payable and Rev_5
Secured Notes Payable and Revolving Credit Facility, Net - Debt Statistics (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Debt Disclosure [Abstract] | |
Principal balance (in billions) | $ 4,670 |
Weighted average remaining life (including extension options) | 4 years 8 months 12 days |
Weighted average remaining fixed interest period | 2 years 7 months 6 days |
Weighted average annual interest rate | 2.82% |
Secured Notes Payable and Rev_6
Secured Notes Payable and Revolving Credit Facility, Net - Future Principal Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Minimum Future Principal Payments Due | ||
2023 | $ 852 | |
2024 | 891 | |
2025 | 838,333 | |
2026 | 1,015,976 | |
2027 | 1,401,022 | |
Thereafter | 1,964,037 | |
Total future principal payments | $ 5,221,111 | $ 5,046,725 |
Secured Notes Payable and Rev_7
Secured Notes Payable and Revolving Credit Facility, Net - Loan Costs and Accumulated Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Loan Costs Included In Interest Expense | ||||
Loan premium amortized and written off | $ (344) | $ (344) | ||
Deferred loan costs amortized and written off | 5,908 | 8,131 | ||
Interest Expense | ||||
Loan Costs Included In Interest Expense | ||||
Loan premium amortized and written off | $ (116) | $ (116) | (344) | (344) |
Deferred loan costs amortized and written off | 2,030 | 3,939 | 5,908 | 8,131 |
Loan costs expensed | 8 | 173 | 110 | 208 |
Total | $ 1,922 | $ 3,996 | $ 5,674 | $ 7,995 |
Interest Payable, Accounts Pa_3
Interest Payable, Accounts Payable and Deferred Revenue (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Interest payable | $ 12,584 | $ 12,254 |
Accounts payable and accrued liabilities | 100,511 | 83,150 |
Deferred revenue | 46,763 | 50,056 |
Total interest payable, accounts payable and deferred revenue | $ 159,858 | $ 145,460 |
Derivative Contracts - Derivati
Derivative Contracts - Derivative Summary (Details) | Sep. 30, 2022 USD ($) instrument unit |
Derivative [Line Items] | |
Percentage of notional amount disclosed | 100% |
Unconsolidated Funds | |
Derivative [Line Items] | |
Percentage of notional amount disclosed | 100% |
Interest Rate Swap | Derivatives Designated as Cash Flow Hedges | Cash Flow Hedging | |
Derivative [Line Items] | |
Number of Interest Rate Contracts | instrument | 30 |
Notional | $ 4,642,400,000 |
Percentage of notional amount disclosed | 100% |
Interest Rate Swap | Derivatives Designated as Cash Flow Hedges | Cash Flow Hedging | Unconsolidated Funds | |
Derivative [Line Items] | |
Number of Interest Rate Contracts | instrument | 2 |
Notional | $ 115,000,000 |
Percentage of notional amount disclosed | 100% |
Interest Rate Cap | Derivatives Not Designated as Cash Flow Hedges | Cash Flow Hedging | |
Derivative [Line Items] | |
Number of Interest Rate Contracts | unit | 5 |
Notional | $ 1,100,000,000 |
Interest Rate Cap | Derivatives Not Designated as Cash Flow Hedges | Cash Flow Hedging | Interest Rate Cap Purchased Notional | |
Derivative [Line Items] | |
Number of Interest Rate Contracts | unit | 4 |
Notional | $ 550,000,000 |
Interest Rate Cap | Derivatives Not Designated as Cash Flow Hedges | Cash Flow Hedging | Interest Rate Cap Sold Notional | |
Derivative [Line Items] | |
Number of Interest Rate Contracts | unit | 1 |
Notional | $ 550,000,000 |
Derivative Contracts - Credit-r
Derivative Contracts - Credit-risk related Contingent Features (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Percentage of notional amount disclosed | 100% | |
Unconsolidated Funds | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Percentage of notional amount disclosed | 100% | |
Interest Rate Swap | Derivatives Designated as Cash Flow Hedges | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value derivatives in net liability position | $ 0 | $ 77,760 |
Percentage of notional amount disclosed | 100% | |
Interest Rate Swap | Derivatives Designated as Cash Flow Hedges | Cash Flow Hedging | Unconsolidated Funds | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value derivatives in net liability position | $ 0 | $ 0 |
Percentage of notional amount disclosed | 100% |
Derivative Contracts - Counterp
Derivative Contracts - Counterparty Credit Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivatives in an asset position | $ 286,890 | $ 15,473 |
Percentage of notional amount disclosed | 100% | |
Unconsolidated Funds | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Percentage of notional amount disclosed | 100% | |
Interest Rate Swap | Derivatives Designated as Cash Flow Hedges | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivatives in an asset position | $ 293,568 | 14,927 |
Percentage of notional amount disclosed | 100% | |
Interest Rate Swap | Derivatives Designated as Cash Flow Hedges | Cash Flow Hedging | Unconsolidated Funds | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivatives in an asset position | $ 13,627 | $ 1,889 |
Percentage of notional amount disclosed | 100% |
Derivative Contracts - Impact o
Derivative Contracts - Impact of Hedges on AOCI and Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||||
Gain recorded in AOCI before reclassifications | $ 318,408 | $ 44,262 | ||
Interest Expense presented in the consolidated statements of operations | $ (38,394) | $ (38,878) | (109,560) | (110,018) |
Income from unconsolidated Fund presented in the consolidated statements of operations | $ 356 | $ 260 | 921 | 713 |
Unconsolidated Funds | ||||
Derivative [Line Items] | ||||
Gain recorded in AOCI before reclassifications | 3,777 | 192 | ||
Cash Flow Hedging | Derivatives Designated as Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Gain recorded in AOCI before reclassifications | 318,408 | 44,262 | ||
(Gains) losses reclassified from AOCI to interest expense | 20,505 | 55,951 | ||
Cash Flow Hedging | Derivatives Designated as Cash Flow Hedges | Unconsolidated Funds | ||||
Derivative [Line Items] | ||||
Gain recorded in AOCI before reclassifications | 3,777 | 192 | ||
(Gains) losses reclassified from AOCI to interest expense | (62) | 46 | ||
Cash Flow Hedging | Derivatives Not Designated as Cash Flow Hedges | Interest Expense | ||||
Derivative [Line Items] | ||||
Loss recorded as interest expense | $ 38 | $ 0 |
Derivative Contracts - Future R
Derivative Contracts - Future Reclassifications from AOCI (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Derivative [Line Items] | |
Derivative gain (loss) to be reclassified during next year | $ 114,921 |
Unconsolidated Funds | |
Derivative [Line Items] | |
Derivative gain (loss) to be reclassified during next year | $ 1,333 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Apr. 26, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Number common shares issued in exchange for equal number of OP units (in shares) | 260,000 | 22,000 | ||||
Number of OP units and fully-vested LTIP units redeemed (in shares) | 10,000 | 4,000 | ||||
Cash paid for repurchase OP units | $ 6 | $ 10 | $ 336 | $ 115 | ||
Outstanding common stock (in shares) | 175,788,827 | 175,788,827 | 175,529,133 | |||
Number of shares of common stock issued upon redemption of one OP unit (in shares) | 1 | |||||
Conversion rate for operating partnership | 1 | 1 | ||||
Variable Interest Entity, Primary Beneficiary | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Capital interest in consolidated JV (percent) | 55% | 55% | ||||
Multifamily | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Asset acquisition, consideration transferred | $ 99,000 | |||||
Multifamily | Investor | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Asset acquisition, consideration transferred | $ 81,000 | |||||
Operating Partnership | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Noncontrolling interests ownership in the operating partnership (in shares) | 30,800,000 | 30,800,000 | ||||
Noncontrolling interests ownership in the operating partnership (percent) | 15% | 15% | ||||
Outstanding common stock (in shares) | 175,800,000 | 175,800,000 |
Equity - Changes in Ownership I
Equity - Changes in Ownership Interest in Operating Partnership (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | ||||
Net income attributable to common stockholders | $ 22,955 | $ 18,141 | $ 72,843 | $ 45,939 |
Transfers from noncontrolling interests: | ||||
Exchange of OP Units with noncontrolling interests | 4,236 | 354 | ||
Repurchase of OP Units from noncontrolling interests | (176) | (53) | ||
Net transfers from noncontrolling interests | 4,060 | 301 | ||
Change from net income attributable to common stockholders and transfers from noncontrolling interests | $ 76,903 | $ 46,240 |
Equity - AOCI Reconciliation (D
Equity - AOCI Reconciliation (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 3,986,553 | $ 3,996,019 |
Other comprehensive income before reclassifications | 318,408 | 44,262 |
Reclassification of loss (income) from AOCI to income from unconsolidated funds/ interest expense | 20,505 | 55,951 |
Net current period OCI | 342,628 | 100,451 |
OCI attributable to noncontrolling interests | (104,205) | (31,955) |
OCI attributable to common stockholders | 238,423 | 68,496 |
Ending balance | 4,297,733 | 3,954,694 |
Unconsolidated Funds | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Other comprehensive income before reclassifications | 3,777 | 192 |
Reclassification of loss (income) from AOCI to income from unconsolidated funds/ interest expense | (62) | 46 |
AOCI | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (38,774) | (148,035) |
Ending balance | $ 199,649 | $ (79,539) |
Equity - Equity Compensation (D
Equity - Equity Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | ||||
Stock-based compensation expense, net | $ 2,266 | $ 2,317 | $ 7,156 | $ 7,358 |
Capitalized stock-based compensation | $ 826 | $ 779 | $ 2,455 | $ 2,253 |
EPS (Details)
EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to common stockholders | $ 22,955 | $ 18,141 | $ 72,843 | $ 45,939 |
Allocation to participating securities: Unvested LTIP Units | (218) | (212) | (666) | (645) |
Net income attributable to common stockholders - basic | 22,737 | 17,929 | 72,177 | 45,294 |
Net income attributable to common stockholders - diluted | $ 22,737 | $ 17,929 | $ 72,177 | $ 45,294 |
Weighted average shares of common stock outstanding, basic (in shares) | 175,784,000 | 175,480,000 | 175,742,000 | 175,472,000 |
Weighted average shares of common stock outstanding, diluted (in shares) | 175,784,000 | 175,480,000 | 175,742,000 | 175,472,000 |
Net income per common share, basic (in dollars per share) | $ 0.13 | $ 0.10 | $ 0.41 | $ 0.26 |
Net income per common share, diluted (in dollars per share) | $ 0.13 | $ 0.10 | $ 0.41 | $ 0.26 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares of common stock issued upon exchange of one OP unit or one vested LTIP unit (in shares) | 1 | 1 | ||
OP Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the computation of weighted average diluted shares (in shares) | 30,158,000 | 28,630,000 | 29,626,000 | 28,343,000 |
Vested LTIP Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the computation of weighted average diluted shares (in shares) | 690,000 | 1,454,000 | 1,255,000 | 1,735,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial Instruments Disclosed at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Ground lease liability | $ 10,852 | $ 10,860 |
Fair value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Secured notes payable | 5,106,272 | 5,017,494 |
Ground lease liability | 4,525 | 8,861 |
Carrying value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Secured notes payable | 5,224,774 | 5,050,732 |
Ground lease liability | $ 10,852 | $ 10,860 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative Assets: | ||
Interest rate contract assets | $ 286,890 | $ 15,473 |
Derivative Liabilities: | ||
Fair value - derivatives | $ 1,647 | 69,930 |
Percentage of notional amount disclosed | 100% | |
Unconsolidated Funds | ||
Derivative Liabilities: | ||
Percentage of notional amount disclosed | 100% | |
Level 2 | ||
Derivative Assets: | ||
Interest rate contract assets | $ 286,890 | 15,473 |
Derivative Liabilities: | ||
Fair value - derivatives | 1,647 | 69,930 |
Level 2 | Unconsolidated Funds | ||
Derivative Assets: | ||
Interest rate contract assets | 13,268 | 1,963 |
Derivative Liabilities: | ||
Fair value - derivatives | $ 0 | $ 0 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 2 |
Segment Reporting - Operating A
Segment Reporting - Operating Activity Within Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 253,663 | $ 238,244 | $ 739,515 | $ 679,545 |
Office segment profit | 165,349 | 158,552 | 491,780 | 455,572 |
Office Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 207,927 | 203,856 | 616,744 | 582,425 |
Office expenses | (74,653) | (70,026) | (212,006) | (195,745) |
Office segment profit | 133,274 | 133,830 | 404,738 | 386,680 |
Multifamily Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 45,736 | 34,388 | 122,771 | 97,120 |
Office expenses | (13,661) | (9,666) | (35,729) | (28,228) |
Office segment profit | $ 32,075 | $ 24,722 | $ 87,042 | $ 68,892 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Profit to Net Income Attributable to Common Stockholders (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting [Abstract] | ||||
Total profit from all segments | $ 165,349 | $ 158,552 | $ 491,780 | $ 455,572 |
General and administrative expenses | (11,272) | (11,435) | (34,173) | (30,564) |
Depreciation and amortization | (96,276) | (93,104) | (279,588) | (279,801) |
Other income | 1,649 | 498 | 2,490 | 2,178 |
Other expenses | (199) | (147) | (561) | (764) |
Income from unconsolidated Fund | 356 | 260 | 921 | 713 |
Interest expense | (38,394) | (38,878) | (109,560) | (110,018) |
Net income | 21,213 | 15,746 | 71,309 | 37,316 |
Net loss attributable to noncontrolling interests | 1,742 | 2,395 | 1,534 | 8,623 |
Net income attributable to common stockholders | $ 22,955 | $ 18,141 | $ 72,843 | $ 45,939 |
Future Minimum Lease Rental R_3
Future Minimum Lease Rental Receipts (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) parcel | |
Future minimum base rentals to be received for twelve months ending September 30: | |
2023 | $ 623,700 |
2024 | 538,724 |
2025 | 430,771 |
2026 | 335,745 |
2027 | 260,602 |
Thereafter | 716,131 |
Total future minimum base rentals | $ 2,905,673 |
Future minimum payments receivable maximum term | 1 year |
Wholly-owned properties | |
Lessor, Lease, Description [Line Items] | |
Number of land parcels subject to ground lease | parcel | 2 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees - Narrative (Details) ft² in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 USD ($) ft² apartment property building | Dec. 31, 2021 USD ($) | |
Other Commitments [Line Items] | ||
Number of buildings containing asbestos | building | 33 | |
Principal balance | $ 5,221,111 | $ 5,046,725 |
Partnership X | ||
Other Commitments [Line Items] | ||
Maximum future payments under swap agreement | 3,900 | |
Partnership X | Floating rate term loan | ||
Other Commitments [Line Items] | ||
Principal balance | $ 115,000 | |
Maturity date | Sep. 14, 2028 | |
Loan agreement LIBOR floor | 0% | |
Number of properties to secure loan | property | 2 | |
Partnership X | Floating rate term loan | Interest Rate Swap | ||
Other Commitments [Line Items] | ||
Fixed interest rate | 2.19% | |
Swap Maturity Date | Oct. 01, 2026 | |
Partnership X | Floating rate term loan | LIBOR | ||
Other Commitments [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.35% | |
Repositionings, Capital Expenditure Projects, and Tenant Improvements | ||
Other Commitments [Line Items] | ||
Aggregate remaining contractual commitment | $ 26,600 | |
Development Projects | ||
Other Commitments [Line Items] | ||
Aggregate remaining contractual commitment | $ 42,500 | |
Development Projects | Hawaii | ||
Other Commitments [Line Items] | ||
Retail square footage (sq ft) | ft² | 493 | |
Number of apartments under construction | apartment | 493 |