Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PGRE | |
Entity Registrant Name | PARAMOUNT GROUP, INC. | |
Entity Central Index Key | 1605607 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 212,106,718 |
CONSOLIDATED_BALANCE_SHEETS_UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Rental property, at cost | ||
Land | $2,042,071 | $2,042,071 |
Buildings and improvements | 5,503,475 | 5,488,168 |
Rental property, at cost | 7,545,546 | 7,530,239 |
Accumulated depreciation and amortization | -121,165 | -81,050 |
Rental property, net | 7,424,381 | 7,449,189 |
Real estate fund investments at fair value | 324,282 | 323,387 |
Investments in partially owned entities | 6,370 | 5,749 |
Cash and cash equivalents | 380,889 | 438,599 |
Restricted cash | 53,864 | 55,728 |
Marketable securities | 21,386 | 20,159 |
Deferred rent receivable | 24,261 | 8,267 |
Accounts and other receivables, net of allowance of $333 in 2015 and 2014, respectively | 12,863 | 7,692 |
Deferred charges, net of accumulated amortization of $11,853 and $10,859 in 2015 and 2014, respectively | 43,713 | 39,165 |
Intangible assets, net of accumulated amortization of $57,397 and $20,509 in 2015 and 2014, respectively | 629,021 | 669,385 |
Other assets | 31,948 | 13,121 |
Total assets | 8,952,978 | 9,030,441 |
LIABILITIES AND EQUITY | ||
Mortgages and notes payable | 2,852,754 | 2,852,287 |
Credit facility | 0 | 0 |
Due to affiliates | 27,299 | 27,299 |
Loans payable to noncontrolling interests | 43,188 | 42,195 |
Accounts payable and accrued expenses | 78,282 | 93,472 |
Deferred income taxes | 3,183 | 2,861 |
Interest rate swap liabilities | 182,218 | 194,196 |
Intangible liabilities, net of accumulated amortization of $11,939 and $3,757 in 2015 and 2014, respectively | 210,964 | 219,228 |
Other liabilities | 45,742 | 43,950 |
Total liabilities | 3,443,630 | 3,475,488 |
Commitments and contingencies | ||
Paramount Group, Inc. equity: | ||
Common stock $0.01 par value per share; authorized 900,000,000 shares; issued and outstanding 212,106,718 shares as of 2015 and 2014, respectively | 2,122 | 2,122 |
Additional paid-in-capital | 3,808,193 | 3,851,432 |
Retained earnings | 19,058 | 57,308 |
Paramount Group, Inc. equity | 3,829,373 | 3,910,862 |
Noncontrolling interests in: | ||
Consolidated joint ventures and funds | 685,176 | 685,888 |
Operating Partnership (51,543,993 units outstanding in 2015 and 2014, respectively) | 994,799 | 958,203 |
Total equity | 5,509,348 | 5,554,953 |
Total liabilities and equity | $8,952,978 | $9,030,441 |
CONSOLIDATED_BALANCE_SHEETS_UN1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Accounts and other receivables, allowance | $333 | $333 |
Deferred charges, accumulated amortization | 11,853 | 10,859 |
Intangible assets, accumulated amortization | 57,397 | 20,509 |
Intangible liabilities, accumulated amortization | $11,939 | $3,757 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 212,106,718 | 212,106,718 |
Common stock, shares outstanding | 212,106,718 | 212,106,718 |
Operating partnership, units outstanding | 51,543,993 | 51,543,993 |
CONSOLIDATED_STATEMENT_OF_INCO
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 |
REVENUES: | |
Rental income | $143,243 |
Tenant reimbursement income | 13,488 |
Fee and other income | 4,495 |
Total revenues | 161,226 |
EXPENSES: | |
Operating | 61,884 |
Depreciation and amortization | 73,583 |
General and administrative | 12,613 |
Total expenses | 148,080 |
Operating income | 13,146 |
Income from real estate fund investments | 5,221 |
Income from partially owned entities | 975 |
Unrealized gains on interest rate swaps | 11,978 |
Interest and other income, net | 854 |
Interest and debt expense | -41,888 |
Acquisition and transaction related costs | -1,139 |
Net income (loss) before income taxes | -10,853 |
Income tax expense | -574 |
Net income (loss) | -11,427 |
Less net (income) loss attributable to noncontrolling interests in: | |
Consolidated joint ventures and funds | -668 |
Operating Partnership | 2,364 |
Net income (loss) | ($9,731) |
LOSS PER COMMON SHARE - BASIC: | |
Loss per common share | ($0.05) |
Weighted average shares outstanding | 212,106,718 |
LOSS PER COMMON SHARE - DILUTED: | |
Loss per common share | ($0.05) |
Weighted average shares outstanding | 212,106,718 |
COMBINED_CONSOLIDATED_STATEMEN
COMBINED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Predecessor [Member] | |
REVENUES: | |
Rental income | $7,813 |
Tenant reimbursement income | 455 |
Distributions from real estate fund investments | 6,503 |
Realized and unrealized gains, net | 46,167 |
Fee and other income | 5,182 |
Total revenues | 66,120 |
EXPENSES: | |
Operating | 3,539 |
Depreciation and amortization | 2,667 |
General and administrative | 8,085 |
Profit sharing compensation | 4,794 |
Other | 1,267 |
Total expenses | 20,352 |
Operating income | 45,768 |
Income from partially owned entities | 1,132 |
Unrealized gains on interest rate swaps | 158 |
Interest and other income, net | 709 |
Interest and debt expense | -7,799 |
Net income (loss) before income taxes | 39,968 |
Income tax expense | -3,263 |
Net income (loss) | 36,705 |
Net income attributable to noncontrolling interests | -27,310 |
Net income (loss) | $9,395 |
COMBINED_CONSOLIDATED_STATEMEN1
COMBINED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (USD $) | Total | Predecessor [Member] | Common Shares [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Predecessor Shareholders' Equity [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] |
In Thousands, except Share data | Predecessor [Member] | Consolidated Joint Ventures and Funds [Member] | Operating Partnership [Member] | Predecessor [Member] | |||||
Consolidated Joint Ventures and Funds [Member] | |||||||||
Beginning balance at Dec. 31, 2013 | $2,025,444 | $321,769 | $1,703,675 | ||||||
Net (loss) income | 36,705 | 9,395 | 27,310 | ||||||
Contributions | 78,328 | 399 | 77,929 | ||||||
Distributions | -22,671 | -22,671 | |||||||
Ending balance at Mar. 31, 2014 | 2,117,806 | 308,892 | 1,808,914 | ||||||
Beginning balance at Dec. 31, 2014 | 5,554,953 | 2,122 | 3,851,432 | 57,308 | 685,888 | 958,203 | |||
Common stock, shares outstanding at Dec. 31, 2014 | 212,106,718 | 212,106,718 | |||||||
Net (loss) income | -11,427 | -9,731 | 668 | -2,364 | |||||
Dividends | -35,325 | -28,422 | -6,903 | ||||||
Contributions from noncontrolling interest | 2,430 | 2,430 | |||||||
Distributions to noncontrolling interests | -3,488 | -3,488 | |||||||
Adjustments to carry common units at redemption value | -43,409 | 43,409 | |||||||
Amortization of equity awards | 3,035 | 581 | 2,454 | ||||||
Other | -830 | -411 | -97 | -322 | |||||
Ending balance at Mar. 31, 2015 | $5,509,348 | $2,122 | $3,808,193 | $19,058 | $685,176 | $994,799 | |||
Common stock, shares outstanding at Mar. 31, 2015 | 212,106,718 | 212,106,718 |
COMBINED_CONSOLIDATED_STATEMEN2
COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (loss) income | ($11,427) | |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation and amortization | 73,583 | |
Unrealized gains on interest rate swaps | -11,978 | |
Straight-lining of rental income | -15,994 | |
Other non-cash adjustments | 4,834 | |
Realized and unrealized gains, net on real estate fund investments | -873 | |
Income from partially owned entities | -975 | |
Distributions of income from partially owned entities | 353 | |
Amortization of below-market leases, net | -890 | |
Amortization of deferred financing costs | 584 | |
Realized and unrealized gains from marketable securities | -672 | |
Changes in operating assets and liabilities: | ||
Real estate fund investments | -22 | |
Accounts and other receivables | -5,171 | |
Deferred charges | -5,545 | |
Other assets | -19,657 | |
Accounts and other payables | -8,928 | |
Deferred income taxes | 322 | |
Other liabilities | 1,792 | |
Net cash used in operating activities | -664 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of, and additions to, rental properties | -21,636 | |
Change in restricted cash | 1,309 | |
Distributions of capital from partially owned entities | 1 | |
Net cash used in investing activities | -20,326 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividends paid to common shareholders and unitholders | -35,325 | |
Contributions from noncontrolling interests | 2,430 | |
Distributions to noncontrolling interests | -3,488 | |
Repayment of borrowings | -337 | |
Net cash (used in) provided by financing activities | -36,720 | |
Net decrease in cash and cash equivalents | -57,710 | |
Cash and cash equivalents at beginning of period | 438,599 | |
Cash and cash equivalents at end of period | 380,889 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash payments for interest | 37,186 | |
Cash payments for income taxes | 32 | |
NON-CASH TRANSACTIONS: | ||
Adjustment to carry noncontrolling interests in the operating partnership at redemption value | 43,409 | |
(Purchases) sale of marketable securities | -555 | |
Predecessor [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (loss) income | 36,705 | |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation and amortization | 2,667 | |
Unrealized gains on interest rate swaps | -158 | |
Straight-lining of rental income | 45 | |
Other non-cash adjustments | 1,096 | |
Realized and unrealized gains, net on real estate fund investments | -46,167 | |
Income from partially owned entities | -1,132 | |
Distributions of income from partially owned entities | 167 | |
Amortization of deferred financing costs | 108 | |
Realized and unrealized gains from marketable securities | -584 | |
Changes in operating assets and liabilities: | ||
Real estate fund investments | -157,687 | |
Accounts and other receivables | -1,055 | |
Other assets | -3,983 | |
Accounts and other payables | -1,562 | |
Profit sharing payables | 4,794 | |
Deferred income taxes | 6,396 | |
Other liabilities | 1,801 | |
Net cash used in operating activities | -158,549 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of, and additions to, rental properties | -65,079 | |
Change in restricted cash | -2 | |
Distributions of capital from partially owned entities | 84 | |
Net cash used in investing activities | -64,997 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividends paid to common shareholders and unitholders | -22,671 | |
Contributions from noncontrolling interests | 77,929 | |
Contributions from Predecessor shareholders | 399 | |
Proceeds from loans payable to noncontrolling interests | 39,075 | |
Offering costs | -2,799 | |
Net cash (used in) provided by financing activities | 91,933 | |
Net decrease in cash and cash equivalents | -131,613 | |
Cash and cash equivalents at beginning of period | 307,161 | |
Cash and cash equivalents at end of period | 175,548 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash payments for interest | 4,753 | |
Cash payments for income taxes | 1,183 | |
NON-CASH TRANSACTIONS: | ||
(Purchases) sale of marketable securities | $6,354 |
Organization_and_Business
Organization and Business | 3 Months Ended | |
Mar. 31, 2015 | ||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Organization And Business | ||
1 | Organization and Business | |
As used in these consolidated and combined financial statements, unless indicated otherwise, all references to “we,” “us,” “our,” the “Company,” and “Paramount” refer to Paramount Group, Inc. and its consolidated subsidiaries, including Paramount Group Operating Partnership LP, upon completion of the Formation Transactions (as more fully described below) and the initial public offering of common stock. | ||
We are a fully-integrated real estate investment trust (“REIT”) focused on owning, operating, managing, acquiring and redeveloping high-quality, Class A office properties in select central business district submarkets of New York City, Washington, D.C. and San Francisco. As of March 31, 2015, our portfolio consisted of 12 Class A office properties aggregating approximately 10.4 million square feet that was 94.6% leased and 91.3% occupied. | ||
We were incorporated in Maryland as a corporation on April 14, 2014 to continue the business of our Predecessor, as defined, and did not have any meaningful operations until the acquisition of substantially all of the assets of our Predecessor and the assets of the Property Funds, as defined, that it controlled, as well as the interests of unaffiliated third parties in certain properties. Our properties were acquired through a series of Formation Transactions (the “Formation Transactions”) concurrently with our initial public offering of 150,650,000 common shares at a public offering price of $17.50 per share on November 24, 2014 (the “Offering”). | ||
We conduct our business through, and substantially all of our interests are held by, Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). We are the sole general partner of, and owned approximately 80.4% of, the Operating Partnership as of March 31, 2015. | ||
Our Predecessor | ||
Our Predecessor is not a legal entity but a combination of entities under common control as they were entities controlled by members of the Otto family that held various assets, including interests in (i) 15 private equity real estate funds controlled by our Predecessor (which included nine primary funds and six parallel funds) (collectively, the “Funds”) that owned interests in 12 properties, (ii) a wholly-owned property, Waterview, in Rosslyn, Virginia and (iii) three partially owned properties in New York, NY (See note 4, Investments in Partially Owned Entities). | ||
Below is a summary of the 15 private equity real estate funds controlled by our Predecessor. | ||
The following funds are collectively referred to herein as the “Property Funds”: | ||
• | Paramount Group Real Estate Fund I, L.P. (“Fund I”) | |
• | Paramount Group Real Estate Fund II, L.P. (“Fund II”) | |
• | Paramount Group Real Estate Fund III, L.P. (“Fund III”) | |
• | Paramount Group Real Estate Fund IV, L.P. (“Fund IV”) | |
• | PGREF IV Parallel Fund (Cayman), L.P. (“Fund IV Cayman”) | |
• | Paramount Group Real Estate Fund V (CIP), L.P. (“Fund V CIP”) | |
• | Paramount Group Real Estate Fund V (Core), L.P. (“Fund V Core”) | |
• | PGREF V (Core) Parallel Fund (Cayman), L.P. (“Fund V Cayman”) | |
• | Paramount Group Real Estate Fund VII, LP (“Fund VII”) | |
• | Paramount Group Real Estate Fund VII-H, LP (“Fund VII-H”) | |
The following fund was formed to acquire, develop and manage the residential development project at 75 Howard Street: | ||
• | Paramount Group Residential Development Fund, LP (“Residential Fund”) | |
The following funds are collectively referred to herein as the “Alternative Investment Funds”: | ||
• | Paramount Group Real Estate Special Situations Fund, L.P. (“PGRESS”) | |
• | Paramount Group Real Estate Special Situations Fund–H, L.P. (“PGRESS-H”) | |
• | Paramount Group Real Estate Special Situations Fund–A, L.P. (“PGRESS-A”) | |
• Paramount Group Real Estate Fund VIII, L.P. (“Fund VIII”) | ||
The Property Funds and Residential Fund owned interests in the following properties: | ||
•1633 Broadway, New York, NY | ||
•60 Wall Street, New York, NY | ||
•900 Third Avenue, New York, NY | ||
•31 West 52nd Street, New York, NY | ||
•1301 Avenue of the Americas, New York, NY | ||
•One Market Plaza, San Francisco, CA | ||
•50 Beale Street, San Francisco, CA | ||
•75 Howard Street, San Francisco, CA | ||
•Liberty Place, Washington, D.C. | ||
•1899 Pennsylvania Avenue, Washington, D.C. | ||
•2099 Pennsylvania Avenue, Washington, D.C. | ||
•425 Eye Street, Washington, D.C. |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Basis Of Presentation And Significant Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies |
Basis of Presentation | |
The accompanying consolidated and combined financial statements include the accounts of Paramount and its consolidated subsidiaries, including the Operating Partnership. All significant inter-company amounts have been eliminated. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, result of operations and changes in the cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These consolidated and combined financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the consolidated and combined financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC. | |
We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the operating results for the full year. | |
Our Predecessor’s combined financial statements included all the accounts of our Predecessor, including its interests in (i) the Funds, (ii) Waterview and (iii) the three partially-owned properties. Our Predecessor evaluated each of the Funds pursuant to the control model of Accounting Standards Codification (“ASC”) 810-20, Consolidation—Control of Partnerships and Similar Entities and concluded that based on its rights and responsibilities as the sole managing member of the general partner it should consolidate each of the Funds. With the exception of the Residential Fund, which is carried at historical cost, each of the Funds qualify as investment companies pursuant to Financial Services—Investment Companies (“ASC 946”); accordingly, the underlying real estate investments are carried at fair value, which was retained in consolidation by our Predecessor. | |
Upon completion of the Offering and the Formation Transactions, we acquired substantially all of the assets of our Predecessor and all of the assets of the Property Funds that it controlled, other than their interests in 60 Wall Street, 50 Beale Street, and a residual 2.0% interest in One Market Plaza. In addition, as part of the Formation Transactions, we also acquired the interests of certain unaffiliated third parties in 1633 Broadway, 31 West 52nd Street and 1301 Avenue of the Americas. These transactions were accounted for as transactions among entities under common control. However, since the assets that we acquired from our Predecessor are no longer held by funds which qualify for investment company accounting, we account for these assets following the Formation Transactions using historical cost accounting. As a result, our consolidated financial statements following the Formation Transactions, differ significantly from, and are not comparable with, the historical financial position and results of operations of our Predecessor. | |
Significant Accounting Policies | |
There were no material changes to our significant accounting policies disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014. | |
Segment Reporting | |
Upon completion of the Offering and Formation Transactions, we acquired substantially all of the assets of our Predecessor and substantially all of the assets of the Property Funds that it controlled. Our business, post the Formation Transactions, is comprised of one reportable segment. We have determined that our properties have similar economic characteristics to be aggregated into one reportable segment (operating, leasing and managing office properties). Our determination was based primarily on our method of internal reporting. Our Predecessor historically operated an integrated business that consisted of three reportable segments, (i) Owned Properties, (ii) Managed Funds and (iii) a Management Company. The Owned Properties segment consisted of properties in which our Predecessor had a direct or indirect ownership interest, other than properties that it owned through its private equity real estate funds. The Managed Funds segment consisted of the private equity real estate funds. In addition, our Predecessor included a Management Company that performed property management and asset management services and certain general and administrative level functions, including legal and accounting, as a separate reportable segment. | |
Recently Issued Accounting Literature | |
In May 2014, the FASB issued an update ("ASU 2014-09") Revenue from Contracts with Customers. ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. ASU 2014-09 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2016. We are currently evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements. | |
In June 2014, the FASB issued an update (“ASU 2014-12”) to ASC Topic 718, Compensation – Stock Compensation. ASU 2014-12 requires an entity to treat performance targets that can be met after the requisite service period of a share based award has ended, as a performance condition that affects vesting. ASU 2014-12 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2015. We are currently evaluating the impact of the adoption of ASU 2014-12 on our consolidated financial statements. | |
In February 2015, the FASB issued an update (“ASU 2015-02”) Amendments to the Consolidation Analysis to ASC Topic 810, Consolidation. ASU 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU 2015-02 is effective for fiscal years that begin after December 15, 2015. We are currently evaluating the impact of the adoption of ASU 2015-02 on our consolidated financial statements. | |
In April 2015, the FASB issued an update (“ASU 2015-03”) Simplifying the Presentation of Debt Issuance Costs to ASC Topic 835, Interest – Imputation of Interest. ASU 2015-03 requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. ASU 2015-03 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2015. The adoption of this update on January 1, 2016 will not have a material impact on our consolidated financial statements. |
Real_Estate_Fund_Investments
Real Estate Fund Investments | 3 Months Ended | |||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||||||||
Real Estate Fund [Abstract] | ||||||||||||||||||||||||||||||||||||||
Real Estate Fund Investments | 3 | Real Estate Fund Investments | ||||||||||||||||||||||||||||||||||||
Real estate fund investments that are presented at fair value on our consolidated balance sheets are comprised of (i) Property Funds and (ii) Alternative Investment Funds. | ||||||||||||||||||||||||||||||||||||||
The Company | ||||||||||||||||||||||||||||||||||||||
Below is a summary of the fair value of fund investments on our consolidated balance sheet. | ||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | As of | |||||||||||||||||||||||||||||||||||||
Balance Sheet | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||
Real Estate Fund Investments: | ||||||||||||||||||||||||||||||||||||||
Property Funds | $ | 182,610 | $ | 183,216 | ||||||||||||||||||||||||||||||||||
Alternative Investment Funds | 141,672 | 140,171 | ||||||||||||||||||||||||||||||||||||
Total | $ | 324,282 | $ | 323,387 | ||||||||||||||||||||||||||||||||||
Below is a summary of the fair value of fund investments on our consolidated statement of income. | ||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | Three months ended | |||||||||||||||||||||||||||||||||||||
Income Statement | 31-Mar-15 | |||||||||||||||||||||||||||||||||||||
Investment income | $ | 4,495 | ||||||||||||||||||||||||||||||||||||
Investment expenses | 147 | |||||||||||||||||||||||||||||||||||||
Net investment income | 4,348 | |||||||||||||||||||||||||||||||||||||
Net unrealized gains | 873 | |||||||||||||||||||||||||||||||||||||
Income from real estate fund investments | $ | 5,221 | ||||||||||||||||||||||||||||||||||||
Property Funds | ||||||||||||||||||||||||||||||||||||||
The purpose of the Property Funds is to invest in office buildings and related facilities primarily in New York City, Washington, D.C. and San Francisco. As of March 31, 2015, the Property Funds were comprised of (i) Fund II, (ii) Fund III, (iii) Fund VII and (iv) Fund VII-H. The following is a summary of the investments of our Property Funds. | ||||||||||||||||||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||||||||||||||||
60 Wall Street | One Market Plaza | 50 Beale Street | ||||||||||||||||||||||||||||||||||||
Fund II | 46.3 | % | - | - | ||||||||||||||||||||||||||||||||||
Fund III | 16 | % | 2 | % | - | |||||||||||||||||||||||||||||||||
Fund VII (1) | - | - | 41.1 | % | ||||||||||||||||||||||||||||||||||
Fund VII-H (1) | - | - | 1.7 | % | ||||||||||||||||||||||||||||||||||
Total Property Funds | 62.3 | % | 2 | % | 42.8 | % | ||||||||||||||||||||||||||||||||
Other Investors | 37.7 | % | 98 | % | -2 | 57.2 | % | |||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||
-1 | As of March 31, 2015, Fund VII and Fund VII-H had an aggregate of $57.6 million of committed capital that had not yet been invested. | |||||||||||||||||||||||||||||||||||||
-2 | Includes a 49% direct ownership interest held by us. | |||||||||||||||||||||||||||||||||||||
Alternative Investment Funds | ||||||||||||||||||||||||||||||||||||||
The purpose of the Alternative Investment Funds is to invest primarily in real estate related debt and preferred equity investments. As of March 31, 2015, the Alternative Investment Funds were comprised of (i) PGRESS, (ii) PGRESS-H, (iii) PGRESS-A and (iv) Fund VIII, which had an aggregate of $434,000,000 of committed capital that had not yet been invested. The following is a summary of the investments of our Alternative Investment Funds. | ||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | % | Interest/ | As of | |||||||||||||||||||||||||||||||||||
Fund | Investment Type | Ownership | Dividend Rate | Initial Maturity | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Fund VIII | Mezzanine Loan | 2.10% | 8.30% | Jan-22 | $ | 46,750 | $ | 45,947 | ||||||||||||||||||||||||||||||
PGRESS Funds | Preferred Equity Investments | 4.9% - 5.4% | 10.3% - 15.0% | Sep-2015 - Feb-2019 | 94,922 | 94,224 | ||||||||||||||||||||||||||||||||
$ | 141,672 | $ | 140,171 | |||||||||||||||||||||||||||||||||||
The Predecessor | ||||||||||||||||||||||||||||||||||||||
Below is a summary of realized and unrealized gains from real estate fund investments on our consolidated statement of income. | ||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | Three months ended | |||||||||||||||||||||||||||||||||||||
Income Statement | 31-Mar-14 | |||||||||||||||||||||||||||||||||||||
Realized gains on real estate fund investments | $ | - | ||||||||||||||||||||||||||||||||||||
Unrealized gains on real estate fund investments | 46,167 | |||||||||||||||||||||||||||||||||||||
Realized and unrealized gains, net | $ | 46,167 | ||||||||||||||||||||||||||||||||||||
Asset Management Fees | ||||||||||||||||||||||||||||||||||||||
Our predecessor earned asset management fees from the Funds it managed. Asset management fees and expenses related to Funds included in the combined consolidated statement of income are eliminated in combination and consolidation. The limited partners’ share of such fees are reflected as a reduction of net income attributable to noncontrolling interests, which results in a corresponding increase in net income attributable to our Predecessor. | ||||||||||||||||||||||||||||||||||||||
Below is a summary of the asset management fees earned by our Predecessor. | ||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | Three months ended | |||||||||||||||||||||||||||||||||||||
Income Statement | 31-Mar-14 | |||||||||||||||||||||||||||||||||||||
Gross asset management fees | $ | 7,410 | ||||||||||||||||||||||||||||||||||||
Eliminated fees(1) | (390 | ) | ||||||||||||||||||||||||||||||||||||
Net asset management fees | $ | 7,020 | ||||||||||||||||||||||||||||||||||||
-1 | Eliminated fees reflect a reduction in asset management fees from the general partner interest in each of the Funds. | |||||||||||||||||||||||||||||||||||||
The following table summarizes the income statements for the three months ended March 31, 2014 for each of the Property Funds’ underlying investments. | ||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | Property Funds' underlying investments for the period ended March 31, 2014 | |||||||||||||||||||||||||||||||||||||
Statement of Income | 1633 Broadway | 900 Third Ave | 31 West 52nd St | 1301 Ave of the Americas | One Market Plaza | Liberty Place | 1899 Penn. Ave | 2099 Penn. Ave | 425 Eye St | |||||||||||||||||||||||||||||
Rental income | $ | 35,719 | $ | 8,782 | $ | 18,099 | $ | 26,610 | $ | 18,213 | $ | 2,039 | $ | 2,104 | $ | 33 | $ | 2,658 | ||||||||||||||||||||
Tenant reimbursement income | 2,817 | 763 | 1,189 | 2,116 | 388 | 621 | 1,140 | 2 | 744 | |||||||||||||||||||||||||||||
Fee and other income | 522 | 444 | 1,282 | 570 | 1,363 | 14 | 28 | 3 | 179 | |||||||||||||||||||||||||||||
Total revenue | 39,058 | 9,989 | 20,570 | 29,296 | 19,964 | 2,674 | 3,272 | 38 | 3,581 | |||||||||||||||||||||||||||||
Building operating | 13,611 | 4,045 | 5,743 | 12,680 | 7,165 | 1,082 | 1,257 | 1,080 | 1,514 | |||||||||||||||||||||||||||||
Related party management fees | 701 | 264 | 326 | 410 | 217 | 71 | 75 | 1 | 105 | |||||||||||||||||||||||||||||
Operating | 14,312 | 4,309 | 6,069 | 13,090 | 7,382 | 1,153 | 1,332 | 1,081 | 1,619 | |||||||||||||||||||||||||||||
Depreciation and amortization | 2,787 | 1,587 | 5,529 | 9,214 | 9,004 | - | 983 | - | 1,395 | |||||||||||||||||||||||||||||
General and administrative | - | 7 | 27 | 27 | 13 | 5 | 5 | 387 | 7 | |||||||||||||||||||||||||||||
Total expenses | 17,099 | 5,903 | 11,625 | 22,331 | 16,399 | 1,158 | 2,320 | 1,468 | 3,021 | |||||||||||||||||||||||||||||
Operating income (loss) | 21,959 | 4,086 | 8,945 | 6,965 | 3,565 | 1,516 | 952 | (1,430 | ) | 560 | ||||||||||||||||||||||||||||
Unrealized gain on interest rate swaps | 7,280 | 1,766 | 2,602 | 3,253 | 6,915 | - | - | - | - | |||||||||||||||||||||||||||||
Interest and debt expense | (12,731 | ) | (3,657 | ) | (5,505 | ) | (15,170 | ) | (13,738 | ) | (945 | ) | (1,128 | ) | (828 | ) | (1,219 | ) | ||||||||||||||||||||
Unrealized depreciation on investment in real estate | - | - | - | - | - | (30 | ) | - | (10 | ) | - | |||||||||||||||||||||||||||
Net income (loss) before taxes | 16,508 | 2,195 | 6,042 | (4,952 | ) | (3,258 | ) | 541 | (176 | ) | (2,268 | ) | (659 | ) | ||||||||||||||||||||||||
Income tax benefit (expense) | - | - | - | - | - | 3 | 68 | - | (2,339 | ) | ||||||||||||||||||||||||||||
Net income (loss) | $ | 16,508 | $ | 2,195 | $ | 6,042 | $ | (4,952 | ) | $ | (3,258 | ) | $ | 544 | $ | (108 | ) | $ | (2,268 | ) | $ | (2,998 | ) | |||||||||||||||
Investments_in_Partially_Owned
Investments in Partially Owned Entities | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity Method Investments And Joint Ventures [Abstract] | |||||||||||||
Investments in Partially Owned Entities | 4. Investments in Partially Owned Entities | ||||||||||||
The following table summarizes our investments in partially owned entities as of March 31, 2015 and December 31, 2014. | |||||||||||||
Percentage | |||||||||||||
ownership at | As of | ||||||||||||
(Amounts in thousands) | March 31, 2015 | 31-Mar-15 | 31-Dec-14 | ||||||||||
Investments: | |||||||||||||
712 Fifth Avenue | 50 | % | $ | 2,319 | $ | 1,697 | |||||||
Other (1) | 9.5 | % | 4,051 | 4,052 | |||||||||
$ | 6,370 | $ | 5,749 | ||||||||||
-1 | Represents our interest in Oder-Center, a shopping center in Brandenburg, Germany. | ||||||||||||
The following table summarizes income from partially owned entities for the three months ended March 31, 2015 and 2014. | |||||||||||||
Percentage | The Company | The Predecessor | |||||||||||
ownership at | Three months ended March 31, | ||||||||||||
(Amounts in thousands) | March 31, 2015 | 2015 | 2014 | ||||||||||
Our share of Net Income: | |||||||||||||
712 Fifth Avenue | 50 | % | $ | 940 | $ | 1,090 | |||||||
1325 Avenue of the Americas | n/a | - | 42 | ||||||||||
900 Third Avenue (1) | n/a | - | - | ||||||||||
Other (2) | 9.5 | % | 35 | - | |||||||||
$ | 975 | $ | 1,132 | ||||||||||
-1 | As of March 31, 2014, our Predecessor’s investment in 900 Third Avenue had a deficit balance and since our Predecessor had no obligations to fund operating losses, it did not recognize any losses in excess of its investment balance. All unrecognized losses were aggregated to offset future net income until all unrecognized losses were utilized. | ||||||||||||
-2 | We account for our interest in Oder-Center on a one quarter lag basis. The three months ended March 31, 2015 includes our share of income for the 38 day period during the fourth quarter ended December 31, 2014. |
Intangible_Assets_and_Liabilit
Intangible Assets and Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||
Intangible Assets and Liabilities | 5 | Intangible Assets and Liabilities | |||||||
The following summarizes our identified intangible assets (primarily acquired above-market leases and acquired in-place leases) and liabilities (primarily acquired below-market leases) as of March 31, 2015 and December 31, 2014. | |||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
(Amounts in thousands) | 2015 | 2014 | |||||||
Intangible assets: | |||||||||
Gross amount | $ | 686,418 | $ | 689,894 | |||||
Accumulated amortization | (57,397 | ) | (20,509 | ) | |||||
$ | 629,021 | $ | 669,385 | ||||||
Intangible liabilities: | |||||||||
Gross amount | $ | 222,903 | $ | 222,985 | |||||
Accumulated amortization | (11,939 | ) | (3,757 | ) | |||||
$ | 210,964 | $ | 219,228 | ||||||
Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase to rental income of $890,000 for the three months ended March 31, 2015. Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2016 is as follows. | |||||||||
(Amounts in thousands) | |||||||||
2016 | $ | 9,387 | |||||||
2017 | 7,791 | ||||||||
2018 | 9,906 | ||||||||
2019 | 9,328 | ||||||||
2020 | 8,021 | ||||||||
Amortization of acquired in-place leases (a component of depreciation and amortization expense) was $32,992,000 for the three months ended March 31, 2015. Estimated annual amortization of acquired in-place leases for each of the five succeeding years commencing January 1, 2016 is as follows. | |||||||||
(Amounts in thousands) | |||||||||
2016 | $ | 80,797 | |||||||
2017 | 56,388 | ||||||||
2018 | 49,483 | ||||||||
2019 | 45,147 | ||||||||
2020 | 40,202 | ||||||||
Debt
Debt | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Debt | 6 | Debt | |||||||||||||||
The following is a summary of our outstanding debt. | |||||||||||||||||
Balance at | |||||||||||||||||
(Amounts in thousands) | Maturity | Fixed/Variable Rate | Interest Rate at | 31-Mar-15 | 31-Dec-14 | ||||||||||||
Date | March 31, 2015 | ||||||||||||||||
Mortgages and notes payable | |||||||||||||||||
1633 Broadway | |||||||||||||||||
Dec-16 | Fixed | 6.11 | % | $ | 772,100 | $ | 772,100 | ||||||||||
Dec-16 | Variable | 1.56 | % | 154,160 | 154,160 | ||||||||||||
5.35 | % | 926,260 | 926,260 | ||||||||||||||
900 Third Avenue | |||||||||||||||||
Nov-17 | Fixed | 5.35 | % | 255,000 | 255,000 | ||||||||||||
Nov-17 | Variable | 1.76 | % | 19,337 | 19,337 | ||||||||||||
5.09 | % | 274,337 | 274,337 | ||||||||||||||
31 West 52nd Street (64.2% interest) | |||||||||||||||||
Dec-17 | Fixed | 5.74 | % | 337,500 | 337,500 | ||||||||||||
Dec-17 | Variable | 1.66 | % | 75,990 | 75,990 | ||||||||||||
4.99 | % | 413,490 | 413,490 | ||||||||||||||
One Market Plaza (49.0% interest) | |||||||||||||||||
Dec-19 | Fixed | 6.16 | % | 840,000 | 840,000 | ||||||||||||
Dec-19 | Variable | 5 | % | 14,515 | 13,711 | ||||||||||||
6.14 | % | 854,515 | 853,711 | ||||||||||||||
Waterview | Jun-17 | Fixed | 5.76 | % | 210,000 | 210,000 | |||||||||||
1899 Pennsylvania Avenue | Nov-20 | Fixed | 4.88 | % | 90,152 | 90,489 | |||||||||||
Liberty Place | Jun-18 | Fixed | 4.5 | % | 84,000 | 84,000 | |||||||||||
Total mortgages and notes payable | 5.5 | % | $ | 2,852,754 | $ | 2,852,287 | |||||||||||
Revolving Credit Facility | |||||||||||||||||
As of March 31, 2015, there were no amounts outstanding under our senior unsecured revolving credit facility and $200,000,000 was reserved under a letter of credit. |
Noncontrolling_Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 7. Noncontrolling Interests |
Consolidated Joint Ventures and Funds | |
Noncontrolling interests in consolidated joint ventures and funds consist of (i) equity interests in properties that are not wholly owned by us but are consolidated into our financial results because we exercise control over the entities that own such properties and (ii) equity interests in funds that are consolidated into our financial results because we are the sole general partner of such Funds. As of March 31, 2015 and December 31, 2014, noncontrolling interests in consolidated joint ventures and funds on our consolidated balance sheets aggregated $685,176,000 and $685,888,000, respectively. | |
Operating Partnership | |
Noncontrolling interests in the Operating Partnership represents common units of the Operating Partnership that are held by third parties, including management. Since the number of common shares outstanding is equal to the number of common units owned by us, the redemption value of each common unit is equal to the market value of each common share and distributions paid to each common unitholder is equivalent to dividends paid to common stockholders. Accordingly, common units are recorded at their redemption value at the end of each reporting period. Changes in the value from period to period are charged to “additional paid-in-capital” in our consolidated statements of changes in equity. As of March 31, 2015 and December 31, 2014, noncontrolling interests in the Operating Partnership on our consolidated balance sheets aggregated $994,799,000 and $958,203,000, respectively. | |
Variable_Interest_Entities_VIE
Variable Interest Entities ("VIEs") | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Variable Interest Entities [Abstract] | |||||||||
Variable Interest Entities ("VIEs") | 8 | Variable Interest Entities (“VIEs”) | |||||||
As of March 31, 2015 and December 31, 2014, we held variable interests in PGRESS-A, PGRESS-H, Residential Fund Feeder and Fund VII-H which were determined to be VIEs. We are required to consolidate our interests in these entities because we are deemed to be the primary beneficiary and have the power to direct the activities of the entity that most significantly affect economic performance and the obligation to absorb losses and right to receive benefits that could potentially be significant to the entity. The table below summarizes the assets and liabilities of these entities. The liabilities are secured only by the assets of the entities, and are non-recourse to us. | |||||||||
Balance as of | |||||||||
(Amounts in thousands) | 31-Mar-15 | 31-Dec-14 | |||||||
Investments, at fair value | $ | 17,109 | $ | 17,136 | |||||
Investments, at cost | 63,542 | 63,550 | |||||||
Cash and restricted cash | 4,823 | 4,976 | |||||||
Total VIE assets | $ | 85,474 | $ | 85,662 | |||||
Loans payable to non-controlling interests | $ | 43,188 | $ | 42,195 | |||||
Other liabilities | 102 | 131 | |||||||
Total VIE liabilities | $ | 43,290 | $ | 42,326 | |||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | 9 | Fair Value Measurements | |||||||||||||||
ASC 820, Fair Value Measurement and Disclosures, defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non-financial assets and liabilities. Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets. | |||||||||||||||||
Financial Assets and Liabilities measured at Fair Value | |||||||||||||||||
Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of (i) real estate fund investments, (ii) marketable securities (which represent the assets in our deferred compensation plan for which there is a corresponding liability on our consolidated balance sheets) and (iii) interest rate swaps. The table below aggregates the fair values of these financial assets and liabilities by their levels in the fair value hierarchy at March 31, 2015 and December 31, 2014. | |||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Real estate fund investments: | |||||||||||||||||
Investments in Property Funds | $ | 182,610 | $ | - | $ | - | $ | 182,610 | |||||||||
Investments in Alternative Investment Funds | 141,672 | - | - | 141,672 | |||||||||||||
Total real estate fund investments | 324,282 | - | - | 324,282 | |||||||||||||
Marketable securities | 21,386 | 21,386 | - | - | |||||||||||||
Total assets | $ | 345,668 | $ | 21,386 | $ | - | $ | 324,282 | |||||||||
Interest rate swap liabilities | $ | 182,218 | - | $ | 182,218 | - | |||||||||||
Total liabilities | $ | 182,218 | $ | - | $ | 182,218 | $ | - | |||||||||
As of December 31, 2014 | |||||||||||||||||
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Real estate fund investments: | |||||||||||||||||
Investments in Property Funds | $ | 183,216 | $ | - | $ | - | $ | 183,216 | |||||||||
Investments in Alternative Investment Funds | 140,171 | 140,171 | |||||||||||||||
Total real estate fund investments | 323,387 | - | - | 323,387 | |||||||||||||
Marketable securities | 20,159 | 20,159 | - | - | |||||||||||||
Total assets | $ | 343,546 | $ | 20,159 | $ | - | $ | 323,387 | |||||||||
Interest rate swap liabilities | $ | 194,196 | - | $ | 194,196 | - | |||||||||||
Total liabilities | $ | 194,196 | $ | - | $ | 194,196 | $ | - | |||||||||
Property Funds | |||||||||||||||||
At March 31, 2015, the Property Funds had three investments. These investments are classified as Level 3. We use a discounted cash flow valuation technique to estimate the fair value of each of these investments, which is updated quarterly by personnel responsible for the management of each investment and reviewed by senior management at each reporting period. The discounted cash flow valuation technique requires us to estimate cash flows for each investment over the anticipated holding period, which currently ranges from 1.0 to 10.0 years. Cash flows are derived from property rental revenue (base rents plus reimbursements) less operating expenses, real estate taxes and capital and other costs, plus projected sales proceeds in the year of exit. Property rental revenue is based on leases currently in place and our estimates for future leasing activity, which are based on current market rents for similar space. Similarly, estimated real estate taxes and operating expenses are based on amounts incurred in the current period plus a projected growth factor for future periods. Anticipated sales proceeds at the end of an investment’s expected holding period are determined based on the net cash flow of the investment in the year of exit, divided by a terminal capitalization rate, less estimated selling costs. The fair value of each property is calculated by discounting future cash flows (including anticipated sales proceeds), using an appropriate discount rate. The fair value of the investment is calculated by subtracting property level debt, if any, from the fair value of the property. | |||||||||||||||||
Significant unobservable inputs used in determining the fair value of each investment include capitalization rates and discount rates. These rates are based on, among other factors, location and type of property. Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of the Property Fund investments at March 31, 2015 and December 31, 2014. | |||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
Unobservable Quantitative Input | Range | Weighted average (based on fair value of investments) | Range | Weighted average (based on fair value of investments) | |||||||||||||
Discount rates | 6.50% - 7.25% | 6.83% | 6.50% - 7.25% | 6.83% | |||||||||||||
Terminal capitalization rates | 5.50% - 6.00% | 5.72% | 5.50% - 6.00% | 5.72% | |||||||||||||
The above inputs are subject to change based on changes in economic and market conditions and/or changes in use or timing of exit. Changes in discount rates and terminal capitalization rates result in increases, or decreases, in the fair values of these investments. The discount rates encompass, among other things, uncertainties in the valuation models with respect to terminal capitalization rates and the amount and timing of cash flows. Therefore, a change in the fair value of these investments resulting from a change in the terminal capitalization rate may be partially offset by a change in the discount rate. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value, respectively. | |||||||||||||||||
Alternative Investment Funds | |||||||||||||||||
At March 31, 2015, Alternative Investment Funds had investments in a mezzanine loan and preferred equity. These instruments are classified as Level 3. Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required under the instrument and discounting them back to their present value at the appropriate current risk adjusted interest rate. The balances are updated quarterly by a third party and reviewed by senior management at each reporting period. | |||||||||||||||||
Significant unobservable inputs used in determining the fair value of these investments include credit spreads and preferred returns. Significant increases or decreases in any of these inputs in isolation would result in a significantly lower (higher) fair value, respectively. Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of the investments in the Alternative Investment Funds at March 31, 2015 and December 31, 2014. | |||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
Unobservable Quantitative Input | Range | Weighted average (based on fair value of investments) | Range | Weighted average (based on fair value of investments) | |||||||||||||
Preferred return | 8.49% - 14.00% | 11.06% | 8.50% - 14.00% | 11.07% | |||||||||||||
The table below summarizes the changes in the fair value of Real Estate Fund Investments that are classified as Level 3, for the three months ended March 31, 2015 and 2014. | |||||||||||||||||
Real Estate Fund Investments | |||||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||
(Amounts in thousands) | 2015 | 2014 | |||||||||||||||
Beginning balance | $ | 323,387 | $ | 2,158,889 | |||||||||||||
Purchases | 22 | 157,687 | |||||||||||||||
Net unrealized gains | 873 | 46,167 | |||||||||||||||
Ending Balance | $ | 324,282 | $ | 2,362,743 | |||||||||||||
Interest Rate Swaps | |||||||||||||||||
Interest rate swaps are valued by a third-party specialist, based on a pricing model that incorporates market observable inputs for interest rate curves and unobservable inputs for credit spreads. The interest rate swaps are classified as Level 2 in the valuations hierarchy. | |||||||||||||||||
Financial Assets and Liabilities Not Measured at Fair Value | |||||||||||||||||
Financial assets not measured at fair value on the consolidated balance sheets consist of cash equivalents, and are classified as Level 1 as their carrying amount approximates their fair value, due to their short-term nature. Financial liabilities not measured at fair value include mortgages and notes payable. Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required under the instrument and discounting them back to their present value at the appropriate current risk adjusted interest rate, which is provided by a third-party specialist. For floating rate debt, we use forward rates derived from observable market yield curves to project the expected cash flows we would be required to make under the instrument. These instruments are classified as Level 2. | |||||||||||||||||
The following is a summary of the carrying amounts and fair value of these financial instruments as of March 31, 2015 and December 31, 2014. | |||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
(Amounts in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Cash equivalents | $ | 313,951 | $ | 313,951 | $ | 401,215 | $ | 401,215 | |||||||||
Total Assets | $ | 313,951 | $ | 313,951 | $ | 401,215 | $ | 401,215 | |||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
(Amounts in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Mortgage and notes payable | $ | 2,852,754 | $ | 2,782,382 | $ | 2,852,287 | $ | 2,796,842 | |||||||||
Total Liabilities | $ | 2,852,754 | $ | 2,782,382 | $ | 2,852,287 | $ | 2,796,842 | |||||||||
Fee_and_Other_Income
Fee and Other Income | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Fee And Other Income [Abstract] | |||||||||
Fee and Other Income | 10 | Fee and Other Income | |||||||
The following table sets forth the details of our fee and other income. | |||||||||
The Company | The Predecessor | ||||||||
Three months ended March 31, | |||||||||
(Amounts in thousands) | 2015 | 2014 | |||||||
Fee income | |||||||||
Property management fees | $ | 1,329 | $ | 3,956 | |||||
Acquisition and disposition fees | - | 1,038 | |||||||
Construction fees | 61 | 188 | |||||||
Other fees | 145 | - | |||||||
Total fee income | 1,535 | 5,182 | |||||||
Other income | 2,960 | - | |||||||
Total fee and other income | $ | 4,495 | $ | 5,182 | |||||
Interest_and_Other_Income
Interest and Other Income | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Interest And Other Income [Abstract] | |||||||||
Interest and Other Income | 11 | Interest and Other Income | |||||||
The following table sets forth the details of interest and other income. | |||||||||
The Company | The Predecessor | ||||||||
Three months ended March 31, | |||||||||
(Amounts in thousands) | 2015 | 2014 | |||||||
Mark-to-market of investments in our deferred | $ | 733 | $ | 584 | |||||
compensation plans (1) | |||||||||
Interest and other income | 121 | 125 | |||||||
Total interest and other income | $ | 854 | $ | 709 | |||||
-1 | The change resulting from the mark-to-market of the deferred compensation plan assets is entirely offset by the change in the deferred compensation plan liabilities, which is included in general and administrative expense. | ||||||||
Interest_and_Debt_Expense
Interest and Debt Expense | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Interest And Debt Expense [Abstract] | |||||||||
Interest and Debt Expense | 12. Interest and Debt Expense | ||||||||
The following table sets forth the details of interest and debt expense. | |||||||||
The Company | The Predecessor | ||||||||
Three months ended March 31, | |||||||||
(Amounts in thousands) | 2015 | 2014 | |||||||
Interest and debt expense | $ | 41,304 | $ | 7,691 | |||||
Amortization of deferred financing costs | 584 | 108 | |||||||
Total interest and debt expense | $ | 41,888 | $ | 7,799 | |||||
Incentive_Compensation
Incentive Compensation | 3 Months Ended | |
Mar. 31, 2015 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Incentive Compensation | 13 | Incentive Compensation |
Stock Based Compensation | ||
We account for all stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation. As of March 31, 2015, we have 15,501,430 shares available for future grants under the Plan, if all awards granted are full value awards, as defined in the 2014 Equity Incentive Plan. Stock based compensation for the three months ended March 31, 2015 was $3,035,000, and includes $1,861,000 of expense related to the acceleration of vesting of the stock awards in connection with a separation agreement and release. | ||
On April 1, 2015, the compensation committee (the “Compensation Committee”) of the board of directors approved the Company’s 2015 Performance Program (the “2015 Performance Program”), a multi-year performance-based equity compensation program. The purpose of the 2015 Performance Program is to further align the interests of the Company’s stockholders with that of management by encouraging the Company’s senior officers to create stockholder value in a “pay for performance” structure. Under the 2015 Performance Program, participants may earn awards in the form of LTIP Units based on the Company’s total return to stockholders (“TRS”) over a three-year performance measurement period beginning on April 1, 2015 and continuing through March 31, 2018, on both an absolute basis and relative basis. One-half of the award is earned if the Company outperforms a predetermined absolute TRS and the other half is earned if the Company outperforms a predetermined relative TRS. Specifically, participants begin to earn awards under the 2015 Performance Program if the Company’s TRS for the performance measurement period equals or exceeds 21% on an absolute basis and exceeds the performance of the SNL Office REIT Index by 100 basis points on a relative basis, and awards will be fully earned if the Company’s TRS for the performance measurement period equals or exceeds 40% on an absolute basis and exceeds the performance of the SNL Office REIT Index by 700 basis points on a relative basis. Participants will not earn any awards under the 2015 Performance Program if the Company’s TRS during the performance measurement period does not meet these minimum thresholds. The number of LTIP Units that are earned if performance is above the minimum thresholds, but below the maximum thresholds, will be determined based on linear interpolation between the percentages earned at the minimum and maximum thresholds. During the performance measurement period, participants will receive only one-tenth of the dividends otherwise payable to the Company’s stockholders with respect to their LTIP Units and the remaining dividends on their LTIP Units will accrue during the performance measurement period and will be paid to participants only if the LTIP Units are ultimately earned based on the achievement of the designated performance objectives. | ||
If the designated performance objectives are achieved, awards earned under the 2015 Performance Program will also be subject to vesting based on continued employment with the Company through April 1, 2020, with 50% of each award vesting on the date the Compensation Committee determines the awards earned under the 2015 Performance Program following the conclusion of the performance period, and 25% vesting on each of April 1, 2019 and April 1, 2020. | ||
Deferred Compensation | ||
In connection with the Formation Transactions, we assumed a deferred compensation plan (the “1993 Plan”) from our Predecessor. The 1993 Plan permits certain management employees to defer certain percentages of their compensation, as defined. The assets of the 1993 Plan remain the sole property of the Company and are subject to the claims of its general creditors. The assets of the 1993 Plan are included in “marketable securities” and “restricted cash,” with an offsetting liability included in “other liabilities” on our consolidated balance sheets. Income from the mark-to-market of investments in our deferred compensation plan are included in “interest and other income” and this amount is entirely offset by expense from the mark-to-market of plan liabilities, which is included as a component of “general and administrative” expenses on our consolidated statements of income. | ||
The 1993 Plan had a balance of $29,110,000 and $28,148,000 as of March 31, 2015 and December 31, 2014, respectively. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Earnings Per Share [Abstract] | |||||
Earnings Per Share | 14 | Earnings Per Share | |||
The following table provides a summary of net income (loss) and the number of common shares used in the computation of basic income per common share - which includes the weighted average number of common shares outstanding without regard to dilutive potential common shares, and diluted loss per common share - which includes the weighted average common shares and dilutive share equivalents. Dilutive share equivalents may include our employee stock options and restricted stock. | |||||
Three months ended | |||||
(Amounts in thousands, except per share amounts) | 31-Mar-15 | ||||
Numerator: | |||||
Net loss attributable to Paramount Group, Inc. - basic and diluted | $ | (9,731 | ) | ||
Denominator: | |||||
Denominator for basic loss per share - weighted average shares | 212,107 | ||||
Effect of dilutive employee stock options and restricted share awards (1) | - | ||||
Denominator for diluted loss per share - weighted average shares | 212,107 | ||||
Loss per share - basic and diluted | $ | (0.05 | ) | ||
(1) The effect of dilutive securities excludes an aggregate of 53,050 weighted average share equivalents as their effect was anti-dilutive. |
Related_Party
Related Party | 3 Months Ended | |
Mar. 31, 2015 | ||
Related Party Transactions [Abstract] | ||
Related Party | ||
15 | Related Party | |
Due to Affiliates | ||
Includes a $24,500,000 note payable to CNBB-RDF Holdings, LP, which is an entity owned by Maren Otto, Katharina Otto-Bernstein and Alexander Otto, and a $2,799,000 million note payable to a different entity owned by members of the Otto family, both of which were made in lieu of certain cash distributions prior to the completion of the Formation Transactions. The notes are due in October 2017 and bear interest at a fixed rate of 0.50%. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Mar. 31, 2015 | ||
Commitments And Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 16 | Commitments and Contingencies |
Insurance | ||
We carry commercial general liability coverage on our properties, with limits of liability customary within the industry to insure against liability claims and related defense costs. Similarly, we are insured against the risk of direct and indirect physical damage to our properties including coverage for the perils of flood and earthquake shock. Our policies also cover the loss of rental income during an estimated reconstruction period. Our policies reflect limits and deductibles customary in the industry and specific to the buildings and portfolio. We also obtain title insurance policies when acquiring new properties, which insure fee title to our real properties. We currently have coverage for losses incurred in connection with both domestic and foreign terrorist-related activities. While we do carry commercial general liability insurance, property insurance and terrorism insurance with respect to our properties, these policies include limits and terms we consider commercially reasonable. In addition, there are certain losses (including, but not limited to, losses arising from known environmental conditions or acts of war) that are not insured, in full or in part, because they are either uninsurable or the cost of insurance makes it, in our belief, economically impractical to maintain such coverage. Should an uninsured loss arise against us, we would be required to use our own funds to resolve the issue, including litigation costs. In addition, for properties we may self-insure certain portions of our insurance program, and therefore, use our own funds to satisfy those limits, when applicable. We believe the policy specifications and insured limits are adequate given the relative risk of loss, the cost of the coverage and industry practice and, in the opinion of our management, the properties in our portfolio are adequately insured. | ||
Other Commitments and Contingencies | ||
We are a party to various claims and routine litigation arising in the ordinary course of business. Some of these claims or others to which we may be subject from time to time, including claims arising specifically from the Formation Transactions, may result in defense costs, settlements, fines or judgments against us, some of which are not, or cannot be, covered by insurance. Payment of any such costs, settlements, fines or judgments that are not insured could have an adverse impact on our financial position and results of operations. Should any litigation arise in connection with the Formation Transactions, we would contest it vigorously. In addition, certain litigation or the resolution of certain litigation may affect the availability or cost of some of our insurance coverage, which could adversely impact our results of operations and cash flow, expose us to increased risks that would be uninsured, and/or adversely impact our ability to attract officers and directors. | ||
The terms of our mortgage debt and certain side letters in place include certain restrictions and covenants which may limit, among other things, certain investments, the incurrence of additional indebtedness and liens and the disposition or other transfer of assets and interests in the borrower and other credit parties, and requires compliance with certain debt yield, debt service coverage and loan to value ratios. In addition, our senior unsecured revolving credit facility contains representations, warranties, covenants, other agreements and events of default customary for agreements of this type with comparable companies. As of March 31, 2015, we believe we are in compliance with all of our covenants. | ||
718 Fifth Avenue - Put Right | ||
Prior to the Formation Transactions, an affiliate of our Predecessor owned a 25.0% interest in 718 Fifth Avenue, a five-story building containing 19,050 square feet of prime retail space that is located on the southwest corner of 56th Street and Fifth Avenue in New York, (based on its 50.0% interest in a joint venture that held a 50.0% tenancy-in-common interest in the property). Prior to the completion of the Formation Transactions, this interest was sold to its partner in the 718 Fifth Avenue joint venture, who is also our partner in the joint venture that owns 712 Fifth Avenue, New York, New York. In connection with this sale, we granted our joint venture partner a put right, pursuant to which the 712 Fifth Avenue joint venture would be required to purchase the entire direct or indirect interests held by our joint venture partner or its affiliates in 718 Fifth Avenue at a purchase price equal to the fair market value of such interests. The put right may be exercised at any time after the four-year anniversary of the sale of its interest in 718 Fifth Avenue upon 12 months written notice with the actual purchase occurring no earlier than the five-year anniversary of the sale of its interest in 718 Fifth Avenue. If the put right is exercised and the 712 Fifth Avenue joint venture acquires the 50.0% tenancy-in-common interest in the property that will be held by our joint venture partner following the sale of its interest to our joint venture partner, we will own a 25.0% interest in 718 Fifth Avenue. |
Segments_Disclosure
Segments Disclosure | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Segments Disclosure | 17 | Segments Disclosure | |||||||||||||||||||
Upon completion of the Offering and Formation Transactions, we acquired substantially all of the assets of our Predecessor and substantially all of the assets of the Property Funds that it controlled. Our business, post the Formation Transactions, is comprised of one reportable segment. We have determined that our properties have similar economic characteristics to be aggregated into one reportable segment (operating, leasing and managing office properties). Our determination was based, in part, on our method of internal reporting. | |||||||||||||||||||||
The following tables provide selected results for each reportable segment for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||
For the three months ended March 31, 2015 | |||||||||||||||||||||
Owned | |||||||||||||||||||||
(Amounts in thousands) | Properties | Other | Total | ||||||||||||||||||
Income Statement data: | |||||||||||||||||||||
Revenues | |||||||||||||||||||||
Rental income | $ | 142,477 | $ | 766 | $ | 143,243 | |||||||||||||||
Tenant reimbursement income | 13,488 | - | 13,488 | ||||||||||||||||||
Fee and other income | 2,955 | 1,540 | 4,495 | ||||||||||||||||||
Total revenues | 158,920 | 2,306 | 161,226 | ||||||||||||||||||
Total expenses | 135,651 | 12,429 | 148,080 | ||||||||||||||||||
Operating income | 23,269 | (10,123 | ) | 13,146 | |||||||||||||||||
Income from real estate fund investments | - | 5,221 | 5,221 | ||||||||||||||||||
Income from partially owned entities | 940 | 35 | 975 | ||||||||||||||||||
Unrealized gains on interest rate swaps | 11,978 | - | 11,978 | ||||||||||||||||||
Interest and other income, net | 94 | 760 | 854 | ||||||||||||||||||
Interest and debt expense | (39,132 | ) | (2,756 | ) | (41,888 | ) | |||||||||||||||
Acquisition and transaction related costs | - | (1,139 | ) | (1,139 | ) | ||||||||||||||||
Net loss before income taxes | (2,851 | ) | (8,002 | ) | (10,853 | ) | |||||||||||||||
Income tax expense | (460 | ) | (114 | ) | (574 | ) | |||||||||||||||
Net loss | (3,311 | ) | (8,116 | ) | (11,427 | ) | |||||||||||||||
Add: | |||||||||||||||||||||
Depreciation and amortization expense | 73,337 | 246 | 73,583 | ||||||||||||||||||
General and administrative expenses | 42 | 12,571 | 12,613 | ||||||||||||||||||
Interest and debt expense | 39,132 | 2,756 | 41,888 | ||||||||||||||||||
Acquisition and transaction related costs | - | 1,139 | 1,139 | ||||||||||||||||||
Income tax expense | 460 | 114 | 574 | ||||||||||||||||||
NOI from partially owned entities | 3,736 | 45 | 3,781 | ||||||||||||||||||
Less: | |||||||||||||||||||||
Income from real estate fund investments | - | (5,221 | ) | (5,221 | ) | ||||||||||||||||
Income from partially owned entities | (940 | ) | (35 | ) | (975 | ) | |||||||||||||||
Fee income | - | (1,535 | ) | (1,535 | ) | ||||||||||||||||
Unrealized gains on interest rate swaps | (11,978 | ) | - | (11,978 | ) | ||||||||||||||||
Interest and other income, net | (94 | ) | (760 | ) | (854 | ) | |||||||||||||||
Net operating income | $ | 100,384 | $ | 1,204 | $ | 101,588 | |||||||||||||||
Our Predecessor historically operated an integrated business that currently consisted of three reportable segments, (i) Owned Properties, (ii) Managed Funds and (iii) a Management Company. The Owned Properties segment consisted of properties in which our Predecessor had a direct or indirect ownership interest, other than properties that it owned through its private equity real estate funds. The Managed Funds segment consisted of the private equity real estate funds. In addition, our Predecessor included a Management Company that performed property management and asset management services and certain general and administrative level functions, including legal and accounting, as a separate reportable segment. | |||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||
Owned | Managed | Management | |||||||||||||||||||
(Amounts in thousands) | Properties | Funds | Company | Eliminations | Total | ||||||||||||||||
Income Statement data: | |||||||||||||||||||||
Revenues | |||||||||||||||||||||
Rental income | $ | 7,651 | $ | 162 | $ | - | $ | - | $ | 7,813 | |||||||||||
Tenant reimbursement income | 455 | - | - | - | 455 | ||||||||||||||||
Distributions from real estate fund investments | - | 6,503 | - | - | 6,503 | ||||||||||||||||
Realized and unrealized gains, net | - | 46,167 | - | - | 46,167 | ||||||||||||||||
Fee and other income | - | - | 13,773 | (8,591 | ) | 5,182 | |||||||||||||||
Total revenues | 8,106 | 52,832 | 13,773 | (8,591 | ) | 66,120 | |||||||||||||||
Total expenses | 6,825 | 10,526 | 11,592 | (8,591 | ) | 20,352 | |||||||||||||||
Operating income | 1,281 | 42,306 | 2,181 | - | 45,768 | ||||||||||||||||
Income from partially owned entities | 1,132 | - | 14,290 | (14,290 | ) | 1,132 | |||||||||||||||
Unrealized gains on interest rate swaps | - | 158 | - | - | 158 | ||||||||||||||||
Interest and other income, net | 663 | 46 | - | - | 709 | ||||||||||||||||
Interest and debt expense | (3,785 | ) | (4,014 | ) | - | - | (7,799 | ) | |||||||||||||
Net income before income taxes | (709 | ) | 38,496 | 16,471 | (14,290 | ) | 39,968 | ||||||||||||||
Income tax expense | - | - | (3,263 | ) | - | (3,263 | ) | ||||||||||||||
Net income (loss) | (709 | ) | 38,496 | 13,208 | (14,290 | ) | 36,705 | ||||||||||||||
Net income attributable to noncontrolling interests | - | (27,310 | ) | - | - | (27,310 | ) | ||||||||||||||
Net income (loss) attributable to the Predecessor | $ | (709 | ) | $ | 11,186 | $ | 13,208 | $ | (14,290 | ) | $ | 9,395 | |||||||||
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying consolidated and combined financial statements include the accounts of Paramount and its consolidated subsidiaries, including the Operating Partnership. All significant inter-company amounts have been eliminated. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, result of operations and changes in the cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These consolidated and combined financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the consolidated and combined financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC. | |
We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the operating results for the full year. | |
Our Predecessor’s combined financial statements included all the accounts of our Predecessor, including its interests in (i) the Funds, (ii) Waterview and (iii) the three partially-owned properties. Our Predecessor evaluated each of the Funds pursuant to the control model of Accounting Standards Codification (“ASC”) 810-20, Consolidation—Control of Partnerships and Similar Entities and concluded that based on its rights and responsibilities as the sole managing member of the general partner it should consolidate each of the Funds. With the exception of the Residential Fund, which is carried at historical cost, each of the Funds qualify as investment companies pursuant to Financial Services—Investment Companies (“ASC 946”); accordingly, the underlying real estate investments are carried at fair value, which was retained in consolidation by our Predecessor. | |
Upon completion of the Offering and the Formation Transactions, we acquired substantially all of the assets of our Predecessor and all of the assets of the Property Funds that it controlled, other than their interests in 60 Wall Street, 50 Beale Street, and a residual 2.0% interest in One Market Plaza. In addition, as part of the Formation Transactions, we also acquired the interests of certain unaffiliated third parties in 1633 Broadway, 31 West 52nd Street and 1301 Avenue of the Americas. These transactions were accounted for as transactions among entities under common control. However, since the assets that we acquired from our Predecessor are no longer held by funds which qualify for investment company accounting, we account for these assets following the Formation Transactions using historical cost accounting. As a result, our consolidated financial statements following the Formation Transactions, differ significantly from, and are not comparable with, the historical financial position and results of operations of our Predecessor. | |
Significant Accounting Policies | Significant Accounting Policies |
There were no material changes to our significant accounting policies disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014. | |
Segment Reporting | Segment Reporting |
Upon completion of the Offering and Formation Transactions, we acquired substantially all of the assets of our Predecessor and substantially all of the assets of the Property Funds that it controlled. Our business, post the Formation Transactions, is comprised of one reportable segment. We have determined that our properties have similar economic characteristics to be aggregated into one reportable segment (operating, leasing and managing office properties). Our determination was based primarily on our method of internal reporting. Our Predecessor historically operated an integrated business that consisted of three reportable segments, (i) Owned Properties, (ii) Managed Funds and (iii) a Management Company. The Owned Properties segment consisted of properties in which our Predecessor had a direct or indirect ownership interest, other than properties that it owned through its private equity real estate funds. The Managed Funds segment consisted of the private equity real estate funds. In addition, our Predecessor included a Management Company that performed property management and asset management services and certain general and administrative level functions, including legal and accounting, as a separate reportable segment. | |
Recently Issued Accounting Literature | Recently Issued Accounting Literature |
In May 2014, the FASB issued an update ("ASU 2014-09") Revenue from Contracts with Customers. ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. ASU 2014-09 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2016. We are currently evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements. | |
In June 2014, the FASB issued an update (“ASU 2014-12”) to ASC Topic 718, Compensation – Stock Compensation. ASU 2014-12 requires an entity to treat performance targets that can be met after the requisite service period of a share based award has ended, as a performance condition that affects vesting. ASU 2014-12 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2015. We are currently evaluating the impact of the adoption of ASU 2014-12 on our consolidated financial statements. | |
In February 2015, the FASB issued an update (“ASU 2015-02”) Amendments to the Consolidation Analysis to ASC Topic 810, Consolidation. ASU 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU 2015-02 is effective for fiscal years that begin after December 15, 2015. We are currently evaluating the impact of the adoption of ASU 2015-02 on our consolidated financial statements. | |
In April 2015, the FASB issued an update (“ASU 2015-03”) Simplifying the Presentation of Debt Issuance Costs to ASC Topic 835, Interest – Imputation of Interest. ASU 2015-03 requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. ASU 2015-03 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2015. The adoption of this update on January 1, 2016 will not have a material impact on our consolidated financial statements. |
Real_Estate_Fund_Investment_Ta
Real Estate Fund Investment (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||||||||
Real Estate Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||
Summary of Fair Value of Fund Investment | Below is a summary of the fair value of fund investments on our consolidated balance sheet. | |||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | As of | |||||||||||||||||||||||||||||||||||||
Balance Sheet | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||
Real Estate Fund Investments: | ||||||||||||||||||||||||||||||||||||||
Property Funds | $ | 182,610 | $ | 183,216 | ||||||||||||||||||||||||||||||||||
Alternative Investment Funds | 141,672 | 140,171 | ||||||||||||||||||||||||||||||||||||
Total | $ | 324,282 | $ | 323,387 | ||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Income from Fund Investment | Below is a summary of the fair value of fund investments on our consolidated statement of income. | |||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | Three months ended | |||||||||||||||||||||||||||||||||||||
Income Statement | 31-Mar-15 | |||||||||||||||||||||||||||||||||||||
Investment income | $ | 4,495 | ||||||||||||||||||||||||||||||||||||
Investment expenses | 147 | |||||||||||||||||||||||||||||||||||||
Net investment income | 4,348 | |||||||||||||||||||||||||||||||||||||
Net unrealized gains | 873 | |||||||||||||||||||||||||||||||||||||
Income from real estate fund investments | $ | 5,221 | ||||||||||||||||||||||||||||||||||||
Schedule of Investment of Property Funds | The following is a summary of the investments of our Property Funds. | |||||||||||||||||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||||||||||||||||
60 Wall Street | One Market Plaza | 50 Beale Street | ||||||||||||||||||||||||||||||||||||
Fund II | 46.3 | % | - | - | ||||||||||||||||||||||||||||||||||
Fund III | 16 | % | 2 | % | - | |||||||||||||||||||||||||||||||||
Fund VII (1) | - | - | 41.1 | % | ||||||||||||||||||||||||||||||||||
Fund VII-H (1) | - | - | 1.7 | % | ||||||||||||||||||||||||||||||||||
Total Property Funds | 62.3 | % | 2 | % | 42.8 | % | ||||||||||||||||||||||||||||||||
Other Investors | 37.7 | % | 98 | % | -2 | 57.2 | % | |||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||
x | As of March 31, 2015, Fund VII and Fund VII-H had an aggregate of $57.6 million of committed capital that had not yet been invested. | |||||||||||||||||||||||||||||||||||||
x | Includes a 49% direct ownership interest held by us. | |||||||||||||||||||||||||||||||||||||
Summary Of Investments Of Alternative Investment Funds | The following is a summary of the investments of our Alternative Investment Funds. | |||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | % | Interest/ | As of | |||||||||||||||||||||||||||||||||||
Fund | Investment Type | Ownership | Dividend Rate | Initial Maturity | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Fund VIII | Mezzanine Loan | 2.10% | 8.30% | Jan-22 | $ | 46,750 | $ | 45,947 | ||||||||||||||||||||||||||||||
PGRESS Funds | Preferred Equity Investments | 4.9% - 5.4% | 10.3% - 15.0% | Sep-2015 - Feb-2019 | 94,922 | 94,224 | ||||||||||||||||||||||||||||||||
$ | 141,672 | $ | 140,171 | |||||||||||||||||||||||||||||||||||
Schedule of Realized and Unrealized Gains from Real Estate Fund Investment | Below is a summary of realized and unrealized gains from real estate fund investments on our consolidated statement of income. | |||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | Three months ended | |||||||||||||||||||||||||||||||||||||
Income Statement | 31-Mar-14 | |||||||||||||||||||||||||||||||||||||
Realized gains on real estate fund investments | $ | - | ||||||||||||||||||||||||||||||||||||
Unrealized gains on real estate fund investments | 46,167 | |||||||||||||||||||||||||||||||||||||
Realized and unrealized gains, net | $ | 46,167 | ||||||||||||||||||||||||||||||||||||
Schedule of Asset Management Fees | Below is a summary of the asset management fees earned by our Predecessor. | |||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | Three months ended | |||||||||||||||||||||||||||||||||||||
Income Statement | 31-Mar-14 | |||||||||||||||||||||||||||||||||||||
Gross asset management fees | $ | 7,410 | ||||||||||||||||||||||||||||||||||||
Eliminated fees(1) | (390 | ) | ||||||||||||||||||||||||||||||||||||
Net asset management fees | $ | 7,020 | ||||||||||||||||||||||||||||||||||||
o | Eliminated fees reflect a reduction in asset management fees from the general partner interest in each of the Funds. | |||||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Income Statement | The following table summarizes the income statements for the three months ended March 31, 2014 for each of the Property Funds’ underlying investments. | |||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | Property Funds' underlying investments for the period ended March 31, 2014 | |||||||||||||||||||||||||||||||||||||
Statement of Income | 1633 Broadway | 900 Third Ave | 31 West 52nd St | 1301 Ave of the Americas | One Market Plaza | Liberty Place | 1899 Penn. Ave | 2099 Penn. Ave | 425 Eye St | |||||||||||||||||||||||||||||
Rental income | $ | 35,719 | $ | 8,782 | $ | 18,099 | $ | 26,610 | $ | 18,213 | $ | 2,039 | $ | 2,104 | $ | 33 | $ | 2,658 | ||||||||||||||||||||
Tenant reimbursement income | 2,817 | 763 | 1,189 | 2,116 | 388 | 621 | 1,140 | 2 | 744 | |||||||||||||||||||||||||||||
Fee and other income | 522 | 444 | 1,282 | 570 | 1,363 | 14 | 28 | 3 | 179 | |||||||||||||||||||||||||||||
Total revenue | 39,058 | 9,989 | 20,570 | 29,296 | 19,964 | 2,674 | 3,272 | 38 | 3,581 | |||||||||||||||||||||||||||||
Building operating | 13,611 | 4,045 | 5,743 | 12,680 | 7,165 | 1,082 | 1,257 | 1,080 | 1,514 | |||||||||||||||||||||||||||||
Related party management fees | 701 | 264 | 326 | 410 | 217 | 71 | 75 | 1 | 105 | |||||||||||||||||||||||||||||
Operating | 14,312 | 4,309 | 6,069 | 13,090 | 7,382 | 1,153 | 1,332 | 1,081 | 1,619 | |||||||||||||||||||||||||||||
Depreciation and amortization | 2,787 | 1,587 | 5,529 | 9,214 | 9,004 | - | 983 | - | 1,395 | |||||||||||||||||||||||||||||
General and administrative | - | 7 | 27 | 27 | 13 | 5 | 5 | 387 | 7 | |||||||||||||||||||||||||||||
Total expenses | 17,099 | 5,903 | 11,625 | 22,331 | 16,399 | 1,158 | 2,320 | 1,468 | 3,021 | |||||||||||||||||||||||||||||
Operating income (loss) | 21,959 | 4,086 | 8,945 | 6,965 | 3,565 | 1,516 | 952 | (1,430 | ) | 560 | ||||||||||||||||||||||||||||
Unrealized gain on interest rate swaps | 7,280 | 1,766 | 2,602 | 3,253 | 6,915 | - | - | - | - | |||||||||||||||||||||||||||||
Interest and debt expense | (12,731 | ) | (3,657 | ) | (5,505 | ) | (15,170 | ) | (13,738 | ) | (945 | ) | (1,128 | ) | (828 | ) | (1,219 | ) | ||||||||||||||||||||
Unrealized depreciation on investment in real estate | - | - | - | - | - | (30 | ) | - | (10 | ) | - | |||||||||||||||||||||||||||
Net income (loss) before taxes | 16,508 | 2,195 | 6,042 | (4,952 | ) | (3,258 | ) | 541 | (176 | ) | (2,268 | ) | (659 | ) | ||||||||||||||||||||||||
Income tax benefit (expense) | - | - | - | - | - | 3 | 68 | - | (2,339 | ) | ||||||||||||||||||||||||||||
Net income (loss) | $ | 16,508 | $ | 2,195 | $ | 6,042 | $ | (4,952 | ) | $ | (3,258 | ) | $ | 544 | $ | (108 | ) | $ | (2,268 | ) | $ | (2,998 | ) | |||||||||||||||
Investments_in_Partially_Owned1
Investments in Partially Owned Entities (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity Method Investments And Joint Ventures [Abstract] | |||||||||||||
Summary of Investments in Partially Owned Entities | The following table summarizes our investments in partially owned entities as of March 31, 2015 and December 31, 2014. | ||||||||||||
Percentage | |||||||||||||
ownership at | As of | ||||||||||||
(Amounts in thousands) | March 31, 2015 | 31-Mar-15 | 31-Dec-14 | ||||||||||
Investments: | |||||||||||||
712 Fifth Avenue | 50 | % | $ | 2,319 | $ | 1,697 | |||||||
Other (1) | 9.5 | % | 4,051 | 4,052 | |||||||||
$ | 6,370 | $ | 5,749 | ||||||||||
-1 | Represents our interest in Oder-Center, a shopping center in Brandenburg, Germany. | ||||||||||||
Summary of Income from Partially Owned Entities | The following table summarizes income from partially owned entities for the three months ended March 31, 2015 and 2014. | ||||||||||||
Percentage | The Company | The Predecessor | |||||||||||
ownership at | Three months ended March 31, | ||||||||||||
(Amounts in thousands) | March 31, 2015 | 2015 | 2014 | ||||||||||
Our share of Net Income: | |||||||||||||
712 Fifth Avenue | 50 | % | $ | 940 | $ | 1,090 | |||||||
1325 Avenue of the Americas | n/a | - | 42 | ||||||||||
900 Third Avenue (1) | n/a | - | - | ||||||||||
Other (2) | 9.5 | % | 35 | - | |||||||||
$ | 975 | $ | 1,132 | ||||||||||
-1 | As of March 31, 2014, our Predecessor’s investment in 900 Third Avenue had a deficit balance and since our Predecessor had no obligations to fund operating losses, it did not recognize any losses in excess of its investment balance. All unrecognized losses were aggregated to offset future net income until all unrecognized losses were utilized. | ||||||||||||
-2 | We account for our interest in Oder-Center on a one quarter lag basis. The three months ended March 31, 2015 includes our share of income for the 38 day period during the fourth quarter ended December 31, 2014. |
Intangible_Assets_and_Liabilit1
Intangible Assets and Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Summary of Identified Intangible Assets and Liabilities | The following summarizes our identified intangible assets (primarily acquired above-market leases and acquired in-place leases) and liabilities (primarily acquired below-market leases) as of March 31, 2015 and December 31, 2014. | ||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
(Amounts in thousands) | 2015 | 2014 | |||||||
Intangible assets: | |||||||||
Gross amount | $ | 686,418 | $ | 689,894 | |||||
Accumulated amortization | (57,397 | ) | (20,509 | ) | |||||
$ | 629,021 | $ | 669,385 | ||||||
Intangible liabilities: | |||||||||
Gross amount | $ | 222,903 | $ | 222,985 | |||||
Accumulated amortization | (11,939 | ) | (3,757 | ) | |||||
$ | 210,964 | $ | 219,228 | ||||||
Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases | Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2016 is as follows. | ||||||||
(Amounts in thousands) | |||||||||
2016 | $ | 9,387 | |||||||
2017 | 7,791 | ||||||||
2018 | 9,906 | ||||||||
2019 | 9,328 | ||||||||
2020 | 8,021 | ||||||||
Leases, Acquired-in-Place [Member] | |||||||||
Schedule of Estimated Annual Amortization of Acquired In-Place Leases | Estimated annual amortization of acquired in-place leases for each of the five succeeding years commencing January 1, 2016 is as follows. | ||||||||
(Amounts in thousands) | |||||||||
2016 | $ | 80,797 | |||||||
2017 | 56,388 | ||||||||
2018 | 49,483 | ||||||||
2019 | 45,147 | ||||||||
2020 | 40,202 | ||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Summary of Outstanding Debt | The following is a summary of our outstanding debt. | ||||||||||||||||
Balance at | |||||||||||||||||
(Amounts in thousands) | Maturity | Fixed/Variable Rate | Interest Rate at | 31-Mar-15 | 31-Dec-14 | ||||||||||||
Date | March 31, 2015 | ||||||||||||||||
Mortgages and notes payable | |||||||||||||||||
1633 Broadway | |||||||||||||||||
Dec-16 | Fixed | 6.11 | % | $ | 772,100 | $ | 772,100 | ||||||||||
Dec-16 | Variable | 1.56 | % | 154,160 | 154,160 | ||||||||||||
5.35 | % | 926,260 | 926,260 | ||||||||||||||
900 Third Avenue | |||||||||||||||||
Nov-17 | Fixed | 5.35 | % | 255,000 | 255,000 | ||||||||||||
Nov-17 | Variable | 1.76 | % | 19,337 | 19,337 | ||||||||||||
5.09 | % | 274,337 | 274,337 | ||||||||||||||
31 West 52nd Street (64.2% interest) | |||||||||||||||||
Dec-17 | Fixed | 5.74 | % | 337,500 | 337,500 | ||||||||||||
Dec-17 | Variable | 1.66 | % | 75,990 | 75,990 | ||||||||||||
4.99 | % | 413,490 | 413,490 | ||||||||||||||
One Market Plaza (49.0% interest) | |||||||||||||||||
Dec-19 | Fixed | 6.16 | % | 840,000 | 840,000 | ||||||||||||
Dec-19 | Variable | 5 | % | 14,515 | 13,711 | ||||||||||||
6.14 | % | 854,515 | 853,711 | ||||||||||||||
Waterview | Jun-17 | Fixed | 5.76 | % | 210,000 | 210,000 | |||||||||||
1899 Pennsylvania Avenue | Nov-20 | Fixed | 4.88 | % | 90,152 | 90,489 | |||||||||||
Liberty Place | Jun-18 | Fixed | 4.5 | % | 84,000 | 84,000 | |||||||||||
Total mortgages and notes payable | 5.5 | % | $ | 2,852,754 | $ | 2,852,287 | |||||||||||
Variable_Interest_Entities_VIE1
Variable Interest Entities ("VIEs") (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Variable Interest Entities [Abstract] | |||||||||
Summary of Assets and Liabilities of Variable Interest Entities | The liabilities are secured only by the assets of the entities, and are non-recourse to us. | ||||||||
Balance as of | |||||||||
(Amounts in thousands) | 31-Mar-15 | 31-Dec-14 | |||||||
Investments, at fair value | $ | 17,109 | $ | 17,136 | |||||
Investments, at cost | 63,542 | 63,550 | |||||||
Cash and restricted cash | 4,823 | 4,976 | |||||||
Total VIE assets | $ | 85,474 | $ | 85,662 | |||||
Loans payable to non-controlling interests | $ | 43,188 | $ | 42,195 | |||||
Other liabilities | 102 | 131 | |||||||
Total VIE liabilities | $ | 43,290 | $ | 42,326 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||||||||
Schedule of Fair Values of Financial Assets and Liabilities Measured at Fair Value | The table below aggregates the fair values of these financial assets and liabilities by their levels in the fair value hierarchy at March 31, 2015 and December 31, 2014. | ||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Real estate fund investments: | |||||||||||||||||
Investments in Property Funds | $ | 182,610 | $ | - | $ | - | $ | 182,610 | |||||||||
Investments in Alternative Investment Funds | 141,672 | - | - | 141,672 | |||||||||||||
Total real estate fund investments | 324,282 | - | - | 324,282 | |||||||||||||
Marketable securities | 21,386 | 21,386 | - | - | |||||||||||||
Total assets | $ | 345,668 | $ | 21,386 | $ | - | $ | 324,282 | |||||||||
Interest rate swap liabilities | $ | 182,218 | - | $ | 182,218 | - | |||||||||||
Total liabilities | $ | 182,218 | $ | - | $ | 182,218 | $ | - | |||||||||
As of December 31, 2014 | |||||||||||||||||
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Real estate fund investments: | |||||||||||||||||
Investments in Property Funds | $ | 183,216 | $ | - | $ | - | $ | 183,216 | |||||||||
Investments in Alternative Investment Funds | 140,171 | 140,171 | |||||||||||||||
Total real estate fund investments | 323,387 | - | - | 323,387 | |||||||||||||
Marketable securities | 20,159 | 20,159 | - | - | |||||||||||||
Total assets | $ | 343,546 | $ | 20,159 | $ | - | $ | 323,387 | |||||||||
Interest rate swap liabilities | $ | 194,196 | - | $ | 194,196 | - | |||||||||||
Total liabilities | $ | 194,196 | $ | - | $ | 194,196 | $ | - | |||||||||
Summary of Changes in Fair Value of Real Estate Fund Investments in Level 3 | The table below summarizes the changes in the fair value of Real Estate Fund Investments that are classified as Level 3, for the three months ended March 31, 2015 and 2014. | ||||||||||||||||
Real Estate Fund Investments | |||||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||
(Amounts in thousands) | 2015 | 2014 | |||||||||||||||
Beginning balance | $ | 323,387 | $ | 2,158,889 | |||||||||||||
Purchases | 22 | 157,687 | |||||||||||||||
Net unrealized gains | 873 | 46,167 | |||||||||||||||
Ending Balance | $ | 324,282 | $ | 2,362,743 | |||||||||||||
Summary of Carrying Amounts and Fair Value of Financial Instruments | The following is a summary of the carrying amounts and fair value of these financial instruments as of March 31, 2015 and December 31, 2014. | ||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
(Amounts in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Cash equivalents | $ | 313,951 | $ | 313,951 | $ | 401,215 | $ | 401,215 | |||||||||
Total Assets | $ | 313,951 | $ | 313,951 | $ | 401,215 | $ | 401,215 | |||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
(Amounts in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Mortgage and notes payable | $ | 2,852,754 | $ | 2,782,382 | $ | 2,852,287 | $ | 2,796,842 | |||||||||
Total Liabilities | $ | 2,852,754 | $ | 2,782,382 | $ | 2,852,287 | $ | 2,796,842 | |||||||||
Property Funds [Member] | |||||||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||||||||
Summary of Significant Unobservable Quantitative Inputs Utilized in Determining Fair Value of Investments | Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of the Property Fund investments at March 31, 2015 and December 31, 2014. | ||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
Unobservable Quantitative Input | Range | Weighted average (based on fair value of investments) | Range | Weighted average (based on fair value of investments) | |||||||||||||
Discount rates | 6.50% - 7.25% | 6.83% | 6.50% - 7.25% | 6.83% | |||||||||||||
Terminal capitalization rates | 5.50% - 6.00% | 5.72% | 5.50% - 6.00% | 5.72% | |||||||||||||
Alternative Investment Funds [Member] | |||||||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||||||||
Summary of Significant Unobservable Quantitative Inputs Utilized in Determining Fair Value of Investments | Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of the investments in the Alternative Investment Funds at March 31, 2015 and December 31, 2014. | ||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
Unobservable Quantitative Input | Range | Weighted average (based on fair value of investments) | Range | Weighted average (based on fair value of investments) | |||||||||||||
Preferred return | 8.49% - 14.00% | 11.06% | 8.50% - 14.00% | 11.07% | |||||||||||||
Fee_and_Other_Income_Tables
Fee and Other Income (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Fee And Other Income [Abstract] | |||||||||
Schedule of Fee and Other Income | The following table sets forth the details of our fee and other income. | ||||||||
The Company | The Predecessor | ||||||||
Three months ended March 31, | |||||||||
(Amounts in thousands) | 2015 | 2014 | |||||||
Fee income | |||||||||
Property management fees | $ | 1,329 | $ | 3,956 | |||||
Acquisition and disposition fees | - | 1,038 | |||||||
Construction fees | 61 | 188 | |||||||
Other fees | 145 | - | |||||||
Total fee income | 1,535 | 5,182 | |||||||
Other income | 2,960 | - | |||||||
Total fee and other income | $ | 4,495 | $ | 5,182 | |||||
Interest_and_Other_Income_Tabl
Interest and Other Income (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Interest And Other Income [Abstract] | |||||||||
Schedule Of Interest And Other Income | The following table sets forth the details of interest and other income. | ||||||||
The Company | The Predecessor | ||||||||
Three months ended March 31, | |||||||||
(Amounts in thousands) | 2015 | 2014 | |||||||
Mark-to-market of investments in our deferred | $ | 733 | $ | 584 | |||||
compensation plans (1) | |||||||||
Interest and other income | 121 | 125 | |||||||
Total interest and other income | $ | 854 | $ | 709 | |||||
-1 | The change resulting from the mark-to-market of the deferred compensation plan assets is entirely offset by the change in the deferred compensation plan liabilities, which is included in general and administrative expense. |
Interest_and_Debt_Expense_Tabl
Interest and Debt Expense (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Interest And Debt Expense [Abstract] | |||||||||
Details of Interest and Debt Expense | The following table sets forth the details of interest and debt expense. | ||||||||
The Company | The Predecessor | ||||||||
Three months ended March 31, | |||||||||
(Amounts in thousands) | 2015 | 2014 | |||||||
Interest and debt expense | $ | 41,304 | $ | 7,691 | |||||
Amortization of deferred financing costs | 584 | 108 | |||||||
Total interest and debt expense | $ | 41,888 | $ | 7,799 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Earnings Per Share [Abstract] | |||||
Summary of Computation of Earnings Per Share | The following table provides a summary of net income (loss) and the number of common shares used in the computation of basic income per common share - which includes the weighted average number of common shares outstanding without regard to dilutive potential common shares, and diluted loss per common share - which includes the weighted average common shares and dilutive share equivalents. Dilutive share equivalents may include our employee stock options and restricted stock. | ||||
Three months ended | |||||
(Amounts in thousands, except per share amounts) | 31-Mar-15 | ||||
Numerator: | |||||
Net loss attributable to Paramount Group, Inc. - basic and diluted | $ | (9,731 | ) | ||
Denominator: | |||||
Denominator for basic loss per share - weighted average shares | 212,107 | ||||
Effect of dilutive employee stock options and restricted share awards (1) | - | ||||
Denominator for diluted loss per share - weighted average shares | 212,107 | ||||
Loss per share - basic and diluted | $ | (0.05 | ) | ||
(1) The effect of dilutive securities excludes an aggregate of 53,050 weighted average share equivalents as their effect was anti-dilutive. |
Segments_Disclosure_Tables
Segments Disclosure (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Schedule of Each Reportable Segment Information | The following tables provide selected results for each reportable segment for the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||
For the three months ended March 31, 2015 | |||||||||||||||||||||
Owned | |||||||||||||||||||||
(Amounts in thousands) | Properties | Other | Total | ||||||||||||||||||
Income Statement data: | |||||||||||||||||||||
Revenues | |||||||||||||||||||||
Rental income | $ | 142,477 | $ | 766 | $ | 143,243 | |||||||||||||||
Tenant reimbursement income | 13,488 | - | 13,488 | ||||||||||||||||||
Fee and other income | 2,955 | 1,540 | 4,495 | ||||||||||||||||||
Total revenues | 158,920 | 2,306 | 161,226 | ||||||||||||||||||
Total expenses | 135,651 | 12,429 | 148,080 | ||||||||||||||||||
Operating income | 23,269 | (10,123 | ) | 13,146 | |||||||||||||||||
Income from real estate fund investments | - | 5,221 | 5,221 | ||||||||||||||||||
Income from partially owned entities | 940 | 35 | 975 | ||||||||||||||||||
Unrealized gains on interest rate swaps | 11,978 | - | 11,978 | ||||||||||||||||||
Interest and other income, net | 94 | 760 | 854 | ||||||||||||||||||
Interest and debt expense | (39,132 | ) | (2,756 | ) | (41,888 | ) | |||||||||||||||
Acquisition and transaction related costs | - | (1,139 | ) | (1,139 | ) | ||||||||||||||||
Net loss before income taxes | (2,851 | ) | (8,002 | ) | (10,853 | ) | |||||||||||||||
Income tax expense | (460 | ) | (114 | ) | (574 | ) | |||||||||||||||
Net loss | (3,311 | ) | (8,116 | ) | (11,427 | ) | |||||||||||||||
Add: | |||||||||||||||||||||
Depreciation and amortization expense | 73,337 | 246 | 73,583 | ||||||||||||||||||
General and administrative expenses | 42 | 12,571 | 12,613 | ||||||||||||||||||
Interest and debt expense | 39,132 | 2,756 | 41,888 | ||||||||||||||||||
Acquisition and transaction related costs | - | 1,139 | 1,139 | ||||||||||||||||||
Income tax expense | 460 | 114 | 574 | ||||||||||||||||||
NOI from partially owned entities | 3,736 | 45 | 3,781 | ||||||||||||||||||
Less: | |||||||||||||||||||||
Income from real estate fund investments | - | (5,221 | ) | (5,221 | ) | ||||||||||||||||
Income from partially owned entities | (940 | ) | (35 | ) | (975 | ) | |||||||||||||||
Fee income | - | (1,535 | ) | (1,535 | ) | ||||||||||||||||
Unrealized gains on interest rate swaps | (11,978 | ) | - | (11,978 | ) | ||||||||||||||||
Interest and other income, net | (94 | ) | (760 | ) | (854 | ) | |||||||||||||||
Net operating income | $ | 100,384 | $ | 1,204 | $ | 101,588 | |||||||||||||||
Predecessor [Member] | |||||||||||||||||||||
Schedule of Each Reportable Segment Information | In addition, our Predecessor included a Management Company that performed property management and asset management services and certain general and administrative level functions, including legal and accounting, as a separate reportable segment. | ||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||
Owned | Managed | Management | |||||||||||||||||||
(Amounts in thousands) | Properties | Funds | Company | Eliminations | Total | ||||||||||||||||
Income Statement data: | |||||||||||||||||||||
Revenues | |||||||||||||||||||||
Rental income | $ | 7,651 | $ | 162 | $ | - | $ | - | $ | 7,813 | |||||||||||
Tenant reimbursement income | 455 | - | - | - | 455 | ||||||||||||||||
Distributions from real estate fund investments | - | 6,503 | - | - | 6,503 | ||||||||||||||||
Realized and unrealized gains, net | - | 46,167 | - | - | 46,167 | ||||||||||||||||
Fee and other income | - | - | 13,773 | (8,591 | ) | 5,182 | |||||||||||||||
Total revenues | 8,106 | 52,832 | 13,773 | (8,591 | ) | 66,120 | |||||||||||||||
Total expenses | 6,825 | 10,526 | 11,592 | (8,591 | ) | 20,352 | |||||||||||||||
Operating income | 1,281 | 42,306 | 2,181 | - | 45,768 | ||||||||||||||||
Income from partially owned entities | 1,132 | - | 14,290 | (14,290 | ) | 1,132 | |||||||||||||||
Unrealized gains on interest rate swaps | - | 158 | - | - | 158 | ||||||||||||||||
Interest and other income, net | 663 | 46 | - | - | 709 | ||||||||||||||||
Interest and debt expense | (3,785 | ) | (4,014 | ) | - | - | (7,799 | ) | |||||||||||||
Net income before income taxes | (709 | ) | 38,496 | 16,471 | (14,290 | ) | 39,968 | ||||||||||||||
Income tax expense | - | - | (3,263 | ) | - | (3,263 | ) | ||||||||||||||
Net income (loss) | (709 | ) | 38,496 | 13,208 | (14,290 | ) | 36,705 | ||||||||||||||
Net income attributable to noncontrolling interests | - | (27,310 | ) | - | - | (27,310 | ) | ||||||||||||||
Net income (loss) attributable to the Predecessor | $ | (709 | ) | $ | 11,186 | $ | 13,208 | $ | (14,290 | ) | $ | 9,395 | |||||||||
Organization_and_Business_Addi
Organization and Business - Additional Information (Details) (USD $) | 3 Months Ended | 0 Months Ended |
Mar. 31, 2015 | Nov. 24, 2014 | |
sqft | ||
Properties | ||
Real Estate Properties [Line Items] | ||
Number of office properties | 12 | |
Area of office properties | 10,400,000 | |
Office properties leased percentage | 94.60% | |
Office properties occupied percentage | 91.30% | |
Percentage of ownership in operating partnership | 80.40% | |
Predecessor [Member] | ||
Real Estate Properties [Line Items] | ||
Number of office properties | 12 | |
Number of real estate funds | 15 | |
Predecessor [Member] | Primary Funds [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate funds | 9 | |
Predecessor [Member] | Parallel Funds [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate funds | 6 | |
Predecessor [Member] | Partially Owned Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Number of office properties | 3 | |
IPO [Member] | ||
Real Estate Properties [Line Items] | ||
Common shares issued, initial public offering, shares | 150,650,000 | |
Common stock, share price | $17.50 |
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Property Plant And Equipment [Line Items] | |
Number of reportable segments | 1 |
Predecessor [Member] | |
Property Plant And Equipment [Line Items] | |
Number of reportable segments | 3 |
Post-Formation Transactions [Member] | |
Property Plant And Equipment [Line Items] | |
Number of reportable segments | 1 |
One Market Plaza [Member] | |
Property Plant And Equipment [Line Items] | |
Residual ownership interest | 2.00% |
Real_Estate_Fund_Investments_S
Real Estate Fund Investments - Summary of Fair Value of Fund Investment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Real Estate Fund Disclosure [Abstract] | ||
Property Funds | $182,610 | $183,216 |
Alternative Investment Funds | 141,672 | 140,171 |
Total | $324,282 | $323,387 |
Real_Estate_Fund_Investments_S1
Real Estate Fund Investments - Schedule of Fair Value of Income from Fund Investment (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Investment Holdings [Line Items] | |
Income from real estate fund investments | $5,221 |
Investment Income [Member] | |
Investment Holdings [Line Items] | |
Income from real estate fund investments | 4,495 |
Investment Expenses [Member] | |
Investment Holdings [Line Items] | |
Income from real estate fund investments | 147 |
Net Investment Income [Member] | |
Investment Holdings [Line Items] | |
Income from real estate fund investments | 4,348 |
Net Unrealized Gains [Member] | |
Investment Holdings [Line Items] | |
Income from real estate fund investments | $873 |
Real_Estate_Fund_Investments_S2
Real Estate Fund Investments - Schedule of Investments of Property Funds (Details) | Mar. 31, 2015 |
60 Wall Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 100.00% |
One Market Plaza [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 100.00% |
50 Beale Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 100.00% |
Fund II [Member] | 60 Wall Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 46.30% |
Fund III [Member] | 60 Wall Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 16.00% |
Fund III [Member] | One Market Plaza [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 2.00% |
Fund VII [Member] | 50 Beale Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 41.10% |
Fund VII-H [Member] | 50 Beale Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 1.70% |
Property Funds [Member] | 60 Wall Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 62.30% |
Property Funds [Member] | One Market Plaza [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 2.00% |
Property Funds [Member] | 50 Beale Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 42.80% |
Other Investors [Member] | 60 Wall Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 37.70% |
Other Investors [Member] | One Market Plaza [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 98.00% |
Other Investors [Member] | 50 Beale Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 57.20% |
Real_Estate_Fund_Investments_S3
Real Estate Fund Investments - Schedule of Investments of Property Funds (Parenthetical) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
One Market Plaza [Member] | |
Investment Holdings [Line Items] | |
Ownership interest rate of property | 49.00% |
Fund VII and VII-H [Member] | |
Investment Holdings [Line Items] | |
Committed capital that had not yet been invested | 57.6 |
Other Investors [Member] | One Market Plaza [Member] | |
Investment Holdings [Line Items] | |
Ownership interest rate of property | 49.00% |
Real_Estate_Fund_Investments_A
Real Estate Fund Investments - Additional Information (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Real Estate [Abstract] | |
Aggregate committed capital | $434,000 |
Real_Estate_Fund_Investments_S4
Real Estate Fund Investments - Summary of Investments of Alternative Investment Funds (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Investment Holdings [Line Items] | ||
Mezzanine Loan, Interest Rate | 5.50% | |
Investment , total | $141,672 | $140,171 |
Property Fund VIII | ||
Investment Holdings [Line Items] | ||
Mezzanine Loan, Ownership | 2.10% | |
Mezzanine Loan, Interest Rate | 8.30% | |
Mezzanine Loan, Initial Maturity | 31-Jan-22 | |
Mezzanine Loan | 46,750 | 45,947 |
PGRESS Funds | ||
Investment Holdings [Line Items] | ||
Preferred Equity Investments, Initial Maturity | 2015-09 | |
Preferred Equity Investments, Initial Maturity | 2019-02 | |
Preferred Equity Investments, Investment | $94,922 | $94,224 |
PGRESS Funds | Minimum [Member] | ||
Investment Holdings [Line Items] | ||
Preferred Equity Investments, Ownership | 4.90% | |
Preferred Equity Investments, Dividend Rate | 10.30% | |
PGRESS Funds | Maximum [Member] | ||
Investment Holdings [Line Items] | ||
Preferred Equity Investments, Ownership | 5.40% | |
Preferred Equity Investments, Dividend Rate | 15.00% |
Real_Estate_Fund_Investments_S5
Real Estate Fund Investments - Schedule of Realized and Unrealized Gains from Real Estate Fund Investment (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Investment Holdings [Line Items] | ||
Realized and unrealized gains, net | $873 | |
Predecessor [Member] | ||
Investment Holdings [Line Items] | ||
Realized and unrealized gains, net | 46,167 | |
Unrealized Gain on Real Estate Fund Investments [Member] | Predecessor [Member] | ||
Investment Holdings [Line Items] | ||
Realized and unrealized gains, net | $46,167 |
Real_Estate_Fund_Investments_S6
Real Estate Fund Investments - Schedule of Asset Management Fees (Details) (Predecessor [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Predecessor [Member] | |
Investment Holdings [Line Items] | |
Gross asset management fees | $7,410 |
Eliminated fees | -390 |
Net asset management fees | $7,020 |
Real_Estate_Fund_Investments_S7
Real Estate Fund Investments - Schedule of Amounts Recognized in Income Statement (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule Of Balance Sheet And Income Statement Items [Line Items] | ||
Rental income | $143,243 | |
Tenant reimbursement income | 13,488 | |
Fee and other income | 4,495 | |
Total revenues | 161,226 | |
Operating | 61,884 | |
Depreciation and amortization | 73,583 | |
General and administrative | 12,613 | |
Total expenses | 148,080 | |
Operating income | 13,146 | |
Unrealized gain on interest rate swaps | 11,978 | |
Interest and debt expense | -41,888 | |
Net income (loss) before income taxes | -10,853 | |
Income tax benefit (expense) | -574 | |
Net income (loss) | -11,427 | |
1633 Broadway [Member] | ||
Schedule Of Balance Sheet And Income Statement Items [Line Items] | ||
Rental income | 35,719 | |
Tenant reimbursement income | 2,817 | |
Fee and other income | 522 | |
Total revenues | 39,058 | |
Building operating | 13,611 | |
Related party management fees | 701 | |
Operating | 14,312 | |
Depreciation and amortization | 2,787 | |
Total expenses | 17,099 | |
Operating income | 21,959 | |
Unrealized gain on interest rate swaps | 7,280 | |
Interest and debt expense | -12,731 | |
Net income (loss) before income taxes | 16,508 | |
Net income (loss) | 16,508 | |
900 Third Avenue [Member] | ||
Schedule Of Balance Sheet And Income Statement Items [Line Items] | ||
Rental income | 8,782 | |
Tenant reimbursement income | 763 | |
Fee and other income | 444 | |
Total revenues | 9,989 | |
Building operating | 4,045 | |
Related party management fees | 264 | |
Operating | 4,309 | |
Depreciation and amortization | 1,587 | |
General and administrative | 7 | |
Total expenses | 5,903 | |
Operating income | 4,086 | |
Unrealized gain on interest rate swaps | 1,766 | |
Interest and debt expense | -3,657 | |
Net income (loss) before income taxes | 2,195 | |
Net income (loss) | 2,195 | |
31 West 52nd Street [Member] | ||
Schedule Of Balance Sheet And Income Statement Items [Line Items] | ||
Rental income | 18,099 | |
Tenant reimbursement income | 1,189 | |
Fee and other income | 1,282 | |
Total revenues | 20,570 | |
Building operating | 5,743 | |
Related party management fees | 326 | |
Operating | 6,069 | |
Depreciation and amortization | 5,529 | |
General and administrative | 27 | |
Total expenses | 11,625 | |
Operating income | 8,945 | |
Unrealized gain on interest rate swaps | 2,602 | |
Interest and debt expense | -5,505 | |
Net income (loss) before income taxes | 6,042 | |
Net income (loss) | 6,042 | |
1301 Avenue of the Americas [Member] | ||
Schedule Of Balance Sheet And Income Statement Items [Line Items] | ||
Rental income | 26,610 | |
Tenant reimbursement income | 2,116 | |
Fee and other income | 570 | |
Total revenues | 29,296 | |
Building operating | 12,680 | |
Related party management fees | 410 | |
Operating | 13,090 | |
Depreciation and amortization | 9,214 | |
General and administrative | 27 | |
Total expenses | 22,331 | |
Operating income | 6,965 | |
Unrealized gain on interest rate swaps | 3,253 | |
Interest and debt expense | -15,170 | |
Net income (loss) before income taxes | -4,952 | |
Net income (loss) | -4,952 | |
One Market Plaza [Member] | ||
Schedule Of Balance Sheet And Income Statement Items [Line Items] | ||
Rental income | 18,213 | |
Tenant reimbursement income | 388 | |
Fee and other income | 1,363 | |
Total revenues | 19,964 | |
Building operating | 7,165 | |
Related party management fees | 217 | |
Operating | 7,382 | |
Depreciation and amortization | 9,004 | |
General and administrative | 13 | |
Total expenses | 16,399 | |
Operating income | 3,565 | |
Unrealized gain on interest rate swaps | 6,915 | |
Interest and debt expense | -13,738 | |
Net income (loss) before income taxes | -3,258 | |
Net income (loss) | -3,258 | |
Liberty Place [Member] | ||
Schedule Of Balance Sheet And Income Statement Items [Line Items] | ||
Rental income | 2,039 | |
Tenant reimbursement income | 621 | |
Fee and other income | 14 | |
Total revenues | 2,674 | |
Building operating | 1,082 | |
Related party management fees | 71 | |
Operating | 1,153 | |
General and administrative | 5 | |
Total expenses | 1,158 | |
Operating income | 1,516 | |
Interest and debt expense | -945 | |
Unrealized depreciation on investment in real estate | -30 | |
Net income (loss) before income taxes | 541 | |
Income tax benefit (expense) | 3 | |
Net income (loss) | 544 | |
1899 Pennsylvania Avenue [Member] | ||
Schedule Of Balance Sheet And Income Statement Items [Line Items] | ||
Rental income | 2,104 | |
Tenant reimbursement income | 1,140 | |
Fee and other income | 28 | |
Total revenues | 3,272 | |
Building operating | 1,257 | |
Related party management fees | 75 | |
Operating | 1,332 | |
Depreciation and amortization | 983 | |
General and administrative | 5 | |
Total expenses | 2,320 | |
Operating income | 952 | |
Interest and debt expense | -1,128 | |
Net income (loss) before income taxes | -176 | |
Income tax benefit (expense) | 68 | |
Net income (loss) | -108 | |
2099 Pennsylvania Avenue [Member] | ||
Schedule Of Balance Sheet And Income Statement Items [Line Items] | ||
Rental income | 33 | |
Tenant reimbursement income | 2 | |
Fee and other income | 3 | |
Total revenues | 38 | |
Building operating | 1,080 | |
Related party management fees | 1 | |
Operating | 1,081 | |
General and administrative | 387 | |
Total expenses | 1,468 | |
Operating income | -1,430 | |
Interest and debt expense | -828 | |
Unrealized depreciation on investment in real estate | -10 | |
Net income (loss) before income taxes | -2,268 | |
Net income (loss) | -2,268 | |
425 Eye Street [Member] | ||
Schedule Of Balance Sheet And Income Statement Items [Line Items] | ||
Rental income | 2,658 | |
Tenant reimbursement income | 744 | |
Fee and other income | 179 | |
Total revenues | 3,581 | |
Building operating | 1,514 | |
Related party management fees | 105 | |
Operating | 1,619 | |
Depreciation and amortization | 1,395 | |
General and administrative | 7 | |
Total expenses | 3,021 | |
Operating income | 560 | |
Interest and debt expense | -1,219 | |
Net income (loss) before income taxes | -659 | |
Income tax benefit (expense) | -2,339 | |
Net income (loss) | ($2,998) |
Investments_in_Partially_Owned2
Investments in Partially Owned Entities - Summary of Investments in Partially Owned Entities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule Of Equity Method Investments [Line Items] | ||
Investments in partially owned entities | $6,370 | $5,749 |
712 Fifth Avenue [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method ownership percentage | 50.00% | |
Investments in partially owned entities | 2,319 | 1,697 |
Other [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method ownership percentage | 9.50% | |
Investments in partially owned entities | $4,051 | $4,052 |
Investments_in_Partially_Owned3
Investments in Partially Owned Entities - Summary of Income from Partially Owned Entities (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule Of Equity Method Investments [Line Items] | ||
Income from partially owned entities | $975 | |
Predecessor [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Income from partially owned entities | 1,132 | |
712 Fifth Avenue [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method ownership percentage | 50.00% | |
Income from partially owned entities | 940 | |
712 Fifth Avenue [Member] | Predecessor [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method ownership percentage | 50.00% | |
Income from partially owned entities | 1,090 | |
1325 Avenue of the Americas [Member] | Predecessor [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Income from partially owned entities | 42 | |
Other [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method ownership percentage | 9.50% | |
Income from partially owned entities | $35 |
Intangible_Assets_and_Intangib
Intangible Assets and Intangible Liabilities - Summary of Identified Intangible Assets and Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Intangible assets: | ||
Gross amount | $686,418 | $689,894 |
Accumulated amortization | -57,397 | -20,509 |
Intangible assets, Net | 629,021 | 669,385 |
Intangible liabilities: | ||
Gross amount | 222,903 | 222,985 |
Accumulated amortization | -11,939 | -3,757 |
Intangible Liabilities, Net | $210,964 | $219,228 |
Intangible_Assets_and_Liabilit2
Intangible Assets and Liabilities - Additional Information (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Leases, Acquired-in-Place, Market Adjustment [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Rental income | $890 |
Leases, Acquired-in-Place [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of acquired in-place leases | $32,992 |
Intangible_Assets_and_Intangib1
Intangible Assets and Intangible Liabilities - Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2016 | $9,387 |
2017 | 7,791 |
2018 | 9,906 |
2019 | 9,328 |
2020 | $8,021 |
Intangible_Assets_and_Intangib2
Intangible Assets and Intangible Liabilities - Schedule of Estimated Annual Amortization of Acquired In-Place Leases (Details) (Leases, Acquired-in-Place [Member], USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Leases, Acquired-in-Place [Member] | |
Finite Lived Intangible Assets [Line Items] | |
2016 | $80,797 |
2017 | 56,388 |
2018 | 49,483 |
2019 | 45,147 |
2020 | $40,202 |
Debt_Summary_of_Outstanding_De
Debt - Summary of Outstanding Debt (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Maturity Date | 2017-10 | |
Interest Rate | 5.50% | |
Mortgages and notes payable | $2,852,754 | $2,852,287 |
1633 Broadway [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.35% | |
Mortgages and notes payable | 926,260 | 926,260 |
1633 Broadway [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2016-12 | |
Interest Rate | 6.11% | |
Mortgages and notes payable | 772,100 | 772,100 |
1633 Broadway [Member] | Mortgages and Notes Payable with Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2016-12 | |
Interest Rate | 1.56% | |
Mortgages and notes payable | 154,160 | 154,160 |
900 Third Avenue [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.09% | |
Mortgages and notes payable | 274,337 | 274,337 |
900 Third Avenue [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2017-11 | |
Interest Rate | 5.35% | |
Mortgages and notes payable | 255,000 | 255,000 |
900 Third Avenue [Member] | Mortgages and Notes Payable with Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2017-11 | |
Interest Rate | 1.76% | |
Mortgages and notes payable | 19,337 | 19,337 |
31 West 52nd Street [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.99% | |
Mortgages and notes payable | 413,490 | 413,490 |
31 West 52nd Street [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2017-12 | |
Interest Rate | 5.74% | |
Mortgages and notes payable | 337,500 | 337,500 |
31 West 52nd Street [Member] | Mortgages and Notes Payable with Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2017-12 | |
Interest Rate | 1.66% | |
Mortgages and notes payable | 75,990 | 75,990 |
One Market Plaza [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.14% | |
Mortgages and notes payable | 854,515 | 853,711 |
One Market Plaza [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2019-12 | |
Interest Rate | 6.16% | |
Mortgages and notes payable | 840,000 | 840,000 |
One Market Plaza [Member] | Mortgages and Notes Payable with Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2019-12 | |
Interest Rate | 5.00% | |
Mortgages and notes payable | 14,515 | 13,711 |
Waterview [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2017-06 | |
Interest Rate | 5.76% | |
Mortgages and notes payable | 210,000 | 210,000 |
1899 Pennsylvania Avenue [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2020-11 | |
Interest Rate | 4.88% | |
Mortgages and notes payable | 90,152 | 90,489 |
Liberty Place [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2018-06 | |
Interest Rate | 4.50% | |
Mortgages and notes payable | $84,000 | $84,000 |
Debt_Summary_of_Outstanding_De1
Debt - Summary of Outstanding Debt (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2015 | |
31 West 52nd Street [Member] | |
Debt Instrument [Line Items] | |
Ownership interest rate of property | 64.20% |
One Market Plaza [Member] | |
Debt Instrument [Line Items] | |
Ownership interest rate of property | 49.00% |
Debt_Additional_Information_De
Debt - Additional Information (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Letter of credit | $200,000,000 | |
Amount outstanding under credit facility | 0 | 0 |
Senior Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Amount outstanding under credit facility | $0 |
Noncontrolling_Interests_Addit
Noncontrolling Interests - Additional Information (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Noncontrolling Interest [Abstract] | ||
Consolidated joint ventures and funds | $685,176 | $685,888 |
Operating partnerships | $994,799 | $958,203 |
Variable_Interest_Entities_VIE2
Variable Interest Entities ("VIEs") - Summary of Assets and Liabilities of Variable Interest Entities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Cash and restricted cash | $53,864 | $55,728 |
Total assets | 8,952,978 | 9,030,441 |
Other liabilities | 45,742 | 43,950 |
Total liabilities | 3,443,630 | 3,475,488 |
Variable Interest Entity [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments, at fair value | 17,109 | 17,136 |
Investments, at cost | 63,542 | 63,550 |
Cash and restricted cash | 4,823 | 4,976 |
Total assets | 85,474 | 85,662 |
Loans payable to non-controlling interests | 43,188 | 42,195 |
Other liabilities | 102 | 131 |
Total liabilities | $43,290 | $42,326 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Fair Values of Financial Assets and Liabilities Measured at Fair Value (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in Property Funds | $182,610 | $183,216 |
Investments in Alternative Investment Funds | 141,672 | 140,171 |
Total real estate fund investments | 324,282 | 323,387 |
Marketable securities | 21,386 | 20,159 |
Total assets | 345,668 | 343,546 |
Interest rate swap liabilities | 182,218 | 194,196 |
Total liabilities | 182,218 | 194,196 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 21,386 | 20,159 |
Total assets | 21,386 | 20,159 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swap liabilities | 182,218 | 194,196 |
Total liabilities | 182,218 | 194,196 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in Property Funds | 182,610 | 183,216 |
Investments in Alternative Investment Funds | 141,672 | 140,171 |
Total real estate fund investments | 324,282 | 323,387 |
Total assets | $324,282 | $323,387 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Details) (Property Funds [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Investments | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Number of investments held by fund | 3 |
Minimum [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value measurement anticipated investment holding period | 1 year |
Maximum [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value measurement anticipated investment holding period | 10 years |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Significant Unobservable Quantitative Inputs Utilized in Determining Fair Value of Investments (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Property Funds [Member] | Minimum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rates | 6.50% | 6.50% |
Terminal capitalization rates | 5.50% | 5.50% |
Property Funds [Member] | Maximum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rates | 7.25% | 7.25% |
Terminal capitalization rates | 6.00% | 6.00% |
Property Funds [Member] | Weighted average (based on fair value of investments) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rates | 6.83% | 6.83% |
Terminal capitalization rates | 5.72% | 5.72% |
Alternative Investment Funds [Member] | Minimum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Preferred return | 8.49% | 8.50% |
Alternative Investment Funds [Member] | Maximum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Preferred return | 14.00% | 14.00% |
Alternative Investment Funds [Member] | Weighted average (based on fair value of investments) [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Preferred return | 11.06% | 11.07% |
Fair_Value_Measurements_Summar1
Fair Value Measurements - Summary of Changes in Fair Value of Real Estate Fund Investments in Level 3 (Details) (Real Estate Fund [Member], Level 3 [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Real Estate Fund [Member] | Level 3 [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $323,387 | $2,158,889 |
Purchases | 22 | 157,687 |
Net unrealized gains | 873 | 46,167 |
Ending Balance | $324,282 | $2,362,743 |
Fair_Value_Measurements_Summar2
Fair Value Measurements - Summary of Carrying Amounts and Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | $345,668 | $343,546 |
Total liabilities | 182,218 | 194,196 |
Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 313,951 | 401,215 |
Total Assets | 313,951 | 401,215 |
Mortgage and notes payable | 2,852,754 | 2,852,287 |
Total liabilities | 2,852,754 | 2,852,287 |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 313,951 | 401,215 |
Total Assets | 313,951 | 401,215 |
Mortgage and notes payable | 2,782,382 | 2,796,842 |
Total liabilities | $2,782,382 | $2,796,842 |
Fee_and_Other_Income_Schedule_
Fee and Other Income - Schedule of Fee and Other Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Fee income | ||
Property management fees | $1,329 | |
Construction fees | 61 | |
Other fees | 145 | |
Total fee income | 1,535 | |
Other income | 2,960 | |
Total fee and other income | 4,495 | |
Predecessor [Member] | ||
Fee income | ||
Property management fees | 3,956 | |
Acquisition and disposition fees | 1,038 | |
Construction fees | 188 | |
Total fee income | 5,182 | |
Total fee and other income | $5,182 |
Interest_and_Other_Income_Sche
Interest and Other Income - Schedule of Interest and Other Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Mark-to-market of investments in our deferred compensation plans | $733 | |
Interest and other income | 121 | |
Total interest and other income | 854 | |
Predecessor [Member] | ||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Mark-to-market of investments in our deferred compensation plans | 584 | |
Interest and other income | 125 | |
Total interest and other income | $709 |
Interest_and_Debt_Expense_Deta
Interest and Debt Expense - Details of Interest and Debt Expense (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest And Debt Expense [Line Items] | ||
Interest and debt expense | $41,304 | |
Amortization of deferred financing costs | 584 | |
Total interest and debt expense | 41,888 | |
Predecessor [Member] | ||
Interest And Debt Expense [Line Items] | ||
Interest and debt expense | 7,691 | |
Amortization of deferred financing costs | 108 | |
Total interest and debt expense | $7,799 |
Incentive_Compensation_Additio
Incentive Compensation - Additional Information (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Apr. 01, 2015 | Apr. 01, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $3,035,000 | |||
Acceleration of vesting stock awards | 1,861,000 | |||
Equity Incentive Plan [Member] | Full Value Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares available for grant | 15,501,430 | |||
Two Thousand Fifteen Performance Program | Subsequent Event | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Performance measurement period, term | 3 years | |||
Performance measurement period, start date | 1-Apr-15 | |||
Performance measurement period, end date | 31-Mar-18 | |||
Two Thousand Fifteen Performance Program | Subsequent Event | Vesting on the date the Compensation Committee determines the awards earned | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of the awards that vest | 50.00% | |||
Two Thousand Fifteen Performance Program | Subsequent Event | Vesting on April 1, 2019 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of the awards that vest | 25.00% | |||
Two Thousand Fifteen Performance Program | Subsequent Event | Vesting on April 1, 2020 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of the awards that vest | 25.00% | |||
Two Thousand Fifteen Performance Program | Minimum [Member] | Subsequent Event | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total return to stockholders for participants to start earning awards on absolute basis | 21.00% | |||
Percentage by which to exceed the performance of the SNL Office REIT Index for participants to start to earn awards on relative basis | 1.00% | |||
Total return to stockholders for participants to fully earn awards on absolute basis | 40.00% | |||
Percentage by which to exceed performance of the SNL office REIT index for participants to fully earn awards on relative basis | 7.00% | |||
1993 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Assets of deferred compensation plan | $29,110,000 | $28,148,000 |
Earnings_Per_Share_Summary_of_
Earnings Per Share - Summary of Computation of Earnings Per Share (Details) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 |
Numerator: | |
Net loss attributable to Paramount Group, Inc. - basic and diluted | ($9,731) |
Denominator: | |
Denominator for basic loss per share - weighted average shares | 212,106,718 |
Denominator for diluted loss per share - weighted average shares | 212,106,718 |
Loss per share - basic and diluted | ($0.05) |
Earnings_Per_Share_Summary_of_1
Earnings Per Share - Summary of Computation of Earnings Per Share (Parenthetical) (Details) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Earnings Per Share [Abstract] | |
Effect of dilutive securities excluded from computation of earning per share | 53,050 |
Related_Party_Additional_Infor
Related Party - Additional Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Due to affiliates | $27,299 | $27,299 |
Maturity Date | 2017-10 | |
Note payable, fixed bearing interest rate | 0.50% | |
CNBB-RDF Holdings, LP | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 24,500 | |
CNBB-RDF Holdings Otto Family | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $2,799 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Other Commitments [Line Items] | |
Prime retail space of building | 10,400,000 |
718 Fifth Avenue [Member] | |
Other Commitments [Line Items] | |
Put right exercise period after sale of interest | 4 years |
Put right notice period | 12 months |
Put right actual purchase period | 5 years |
712 Fifth Avenue [Member] | |
Other Commitments [Line Items] | |
Equity method ownership percentage | 50.00% |
Predecessor [Member] | 718 Fifth Avenue [Member] | |
Other Commitments [Line Items] | |
Percentage of tenancy-in-common interest in property | 50.00% |
Predecessor [Member] | 718 Fifth Avenue [Member] | Third Party Affiliate [Member] | |
Other Commitments [Line Items] | |
Equity method ownership percentage | 25.00% |
Predecessor [Member] | 712 Fifth Avenue [Member] | |
Other Commitments [Line Items] | |
Equity method ownership percentage | 50.00% |
Parent Company [Member] | Put Right Exercised [Member] | 718 Fifth Avenue [Member] | |
Other Commitments [Line Items] | |
Equity method ownership percentage | 25.00% |
Retail Type Space [Member] | Predecessor [Member] | 718 Fifth Avenue [Member] | |
Other Commitments [Line Items] | |
Prime retail space of building | 19,050 |
Segments_Disclosure_Additional
Segments Disclosure - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 1 |
Predecessor [Member] | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 3 |
Segments_Disclosure_Schedule_o
Segments Disclosure - Schedule of Each Reportable Segment Information (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Revenues | |
Rental income | $143,243 |
Tenant reimbursement income | 13,488 |
Fee and other income | 4,495 |
Total revenues | 161,226 |
Total expenses | 148,080 |
Operating income | 13,146 |
Income from real estate fund investments | 5,221 |
Income from partially owned entities | 975 |
Unrealized gains on interest rate swaps | 11,978 |
Interest and other income, net | 854 |
Interest and debt expense | -41,888 |
Acquisition and transaction related costs | -1,139 |
Net income (loss) before income taxes | -10,853 |
Income tax expense | -574 |
Net income (loss) | -11,427 |
Depreciation and amortization | 73,583 |
General and administrative expenses | 12,613 |
Interest and debt expense | 41,888 |
Acquisition and transaction related costs | 1,139 |
Income tax expense | 574 |
NOI from partially owned entities | 3,781 |
Income from real estate fund investments | -5,221 |
Income from partially owned entities | -975 |
Fee income | -1,535 |
Unrealized gains on interest rate swaps | -11,978 |
Interest and other income, net | -854 |
Net operating income | 101,588 |
Owned Properties [Member] | |
Revenues | |
Rental income | 142,477 |
Tenant reimbursement income | 13,488 |
Fee and other income | 2,955 |
Total revenues | 158,920 |
Total expenses | 135,651 |
Operating income | 23,269 |
Income from partially owned entities | 940 |
Unrealized gains on interest rate swaps | 11,978 |
Interest and other income, net | 94 |
Interest and debt expense | -39,132 |
Net income (loss) before income taxes | -2,851 |
Income tax expense | -460 |
Net income (loss) | -3,311 |
Depreciation and amortization | 73,337 |
General and administrative expenses | 42 |
Interest and debt expense | 39,132 |
Income tax expense | 460 |
NOI from partially owned entities | 3,736 |
Income from partially owned entities | -940 |
Unrealized gains on interest rate swaps | -11,978 |
Interest and other income, net | -94 |
Net operating income | 100,384 |
Other [Member] | |
Revenues | |
Rental income | 766 |
Fee and other income | 1,540 |
Total revenues | 2,306 |
Total expenses | 12,429 |
Operating income | -10,123 |
Income from real estate fund investments | 5,221 |
Income from partially owned entities | 35 |
Interest and other income, net | 760 |
Interest and debt expense | -2,756 |
Acquisition and transaction related costs | -1,139 |
Net income (loss) before income taxes | -8,002 |
Income tax expense | -114 |
Net income (loss) | -8,116 |
Depreciation and amortization | 246 |
General and administrative expenses | 12,571 |
Interest and debt expense | 2,756 |
Acquisition and transaction related costs | 1,139 |
Income tax expense | 114 |
NOI from partially owned entities | 45 |
Income from real estate fund investments | -5,221 |
Income from partially owned entities | -35 |
Fee income | -1,535 |
Interest and other income, net | -760 |
Net operating income | $1,204 |
Segments_Disclosure_Schedule_o1
Segments Disclosure - Schedule of Each Reportable Segment Information of Predecessor (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Rental income | $143,243 | |
Tenant reimbursement income | 13,488 | |
Fee and other income | 4,495 | |
Total revenues | 161,226 | |
Total expenses | 148,080 | |
Operating income | 13,146 | |
Income from partially owned entities | 975 | |
Unrealized gains on interest rate swaps | 11,978 | |
Interest and other income, net | 854 | |
Interest and debt expense | -41,888 | |
Net income (loss) before income taxes | -10,853 | |
Income tax expense | -574 | |
Net income (loss) | -11,427 | |
Net income (loss) | -9,731 | |
Owned Properties [Member] | ||
Revenues | ||
Rental income | 142,477 | |
Tenant reimbursement income | 13,488 | |
Fee and other income | 2,955 | |
Total revenues | 158,920 | |
Total expenses | 135,651 | |
Operating income | 23,269 | |
Income from partially owned entities | 940 | |
Unrealized gains on interest rate swaps | 11,978 | |
Interest and other income, net | 94 | |
Interest and debt expense | -39,132 | |
Net income (loss) before income taxes | -2,851 | |
Income tax expense | -460 | |
Net income (loss) | -3,311 | |
Predecessor [Member] | ||
Revenues | ||
Rental income | 7,813 | |
Tenant reimbursement income | 455 | |
Distributions from real estate fund investments | 6,503 | |
Realized and unrealized gains, net | 46,167 | |
Fee and other income | 5,182 | |
Total revenues | 66,120 | |
Total expenses | 20,352 | |
Operating income | 45,768 | |
Income from partially owned entities | 1,132 | |
Unrealized gains on interest rate swaps | 158 | |
Interest and other income, net | 709 | |
Interest and debt expense | -7,799 | |
Net income (loss) before income taxes | 39,968 | |
Income tax expense | -3,263 | |
Net income (loss) | 36,705 | |
Net income attributable to noncontrolling interests | -27,310 | |
Net income (loss) | 9,395 | |
Predecessor [Member] | Operating Segments [Member] | Owned Properties [Member] | ||
Revenues | ||
Rental income | 7,651 | |
Tenant reimbursement income | 455 | |
Total revenues | 8,106 | |
Total expenses | 6,825 | |
Operating income | 1,281 | |
Income from partially owned entities | 1,132 | |
Interest and other income, net | 663 | |
Interest and debt expense | -3,785 | |
Net income (loss) before income taxes | -709 | |
Net income (loss) | -709 | |
Net income (loss) | -709 | |
Predecessor [Member] | Operating Segments [Member] | Managed Funds [Member] | ||
Revenues | ||
Rental income | 162 | |
Distributions from real estate fund investments | 6,503 | |
Realized and unrealized gains, net | 46,167 | |
Total revenues | 52,832 | |
Total expenses | 10,526 | |
Operating income | 42,306 | |
Unrealized gains on interest rate swaps | 158 | |
Interest and other income, net | 46 | |
Interest and debt expense | -4,014 | |
Net income (loss) before income taxes | 38,496 | |
Net income (loss) | 38,496 | |
Net income attributable to noncontrolling interests | -27,310 | |
Net income (loss) | 11,186 | |
Predecessor [Member] | Operating Segments [Member] | Management Company [Member] | ||
Revenues | ||
Fee and other income | 13,773 | |
Total revenues | 13,773 | |
Total expenses | 11,592 | |
Operating income | 2,181 | |
Income from partially owned entities | 14,290 | |
Net income (loss) before income taxes | 16,471 | |
Income tax expense | -3,263 | |
Net income (loss) | 13,208 | |
Net income (loss) | 13,208 | |
Predecessor [Member] | Eliminations [Member] | ||
Revenues | ||
Fee and other income | -8,591 | |
Total revenues | -8,591 | |
Total expenses | -8,591 | |
Income from partially owned entities | -14,290 | |
Net income (loss) before income taxes | -14,290 | |
Net income (loss) | -14,290 | |
Net income (loss) | ($14,290) |