Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PGRE | |
Entity Registrant Name | PARAMOUNT GROUP, INC. | |
Entity Central Index Key | 1,605,607 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 212,111,937 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Rental property, at cost | ||
Land | $ 2,042,071 | $ 2,042,071 |
Buildings and improvements | 5,567,789 | 5,488,168 |
Rental property, at cost | 7,609,860 | 7,530,239 |
Accumulated depreciation and amortization | (202,105) | (81,050) |
Rental property, net | 7,407,755 | 7,449,189 |
Real estate fund investments | 336,393 | 323,387 |
Investments in unconsolidated joint ventures | 6,537 | 5,749 |
Cash and cash equivalents | 418,095 | 438,599 |
Restricted cash | 92,696 | 55,728 |
Marketable securities | 20,365 | 20,159 |
Deferred rent receivable | 58,117 | 8,267 |
Accounts and other receivables, net of allowance of $365 and $333 in 2015 and 2014, respectively | 12,313 | 7,692 |
Deferred charges, net of accumulated amortization of $14,311 and $10,859 in 2015 and 2014, respectively | 54,467 | 39,165 |
Intangible assets, net of accumulated amortization of $116,935 and $20,509 in 2015 and 2014, respectively | 546,432 | 669,385 |
Other assets | 33,636 | 13,121 |
Total assets | 8,986,806 | 9,030,441 |
LIABILITIES AND EQUITY | ||
Mortgages and notes payable | 2,853,735 | 2,852,287 |
Credit facility | 0 | 0 |
Due to affiliates | 27,299 | 27,299 |
Loans payable to noncontrolling interests | 44,822 | 42,195 |
Accounts payable and accrued expenses | 97,157 | 93,472 |
Dividends and distributions payable | 25,066 | |
Deferred income taxes | 2,560 | 2,861 |
Interest rate swap liabilities | 163,301 | 194,196 |
Intangible liabilities, net of accumulated amortization of $29,730 and $3,757 in 2015 and 2014, respectively | 193,042 | 219,228 |
Other liabilities | 44,958 | 43,950 |
Total liabilities | $ 3,451,940 | $ 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 212,111,937 and 212,106,718 shares in 2015 and 2014, respectively | $ 2,122 | $ 2,122 |
Additional paid-in-capital | 3,893,984 | 3,851,432 |
Earnings (less than) in excess of distributions | (24,874) | 57,308 |
Accumulated other comprehensive loss | (15,389) | |
Paramount Group, Inc. equity | 3,855,843 | 3,910,862 |
Noncontrolling interests in: | ||
Consolidated joint ventures and funds | 781,343 | 685,888 |
Operating Partnership (51,660,088 and 51,543,993 units outstanding in 2015 and 2014, respectively) | 897,680 | 958,203 |
Total equity | 5,534,866 | 5,554,953 |
Total liabilities and equity | $ 8,986,806 | $ 9,030,441 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Accounts and other receivables, allowance | $ 365 | $ 333 |
Deferred charges, accumulated amortization | 14,311 | 10,859 |
Intangible assets, accumulated amortization | 116,935 | 20,509 |
Intangible liabilities, accumulated amortization | $ 29,730 | $ 3,757 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 212,111,937 | 212,106,718 |
Common stock, shares outstanding | 212,111,937 | 212,106,718 |
Operating partnership, units outstanding | 51,660,088 | 51,543,993 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | ||
REVENUES: | |||
Rental income | $ 146,470 | $ 435,630 | |
Tenant reimbursement income | 14,405 | 39,956 | |
Fee and other income | 6,851 | 16,294 | |
Total revenues | 167,726 | 491,880 | |
EXPENSES: | |||
Operating | 63,354 | 183,019 | |
Depreciation and amortization | 70,654 | 223,658 | |
General and administrative | 6,666 | 28,412 | |
Acquisition and transaction related costs | 485 | 9,832 | |
Total expenses | 141,159 | 444,921 | |
Operating income (loss) | 26,567 | 46,959 | |
Income from real estate fund investments | 10,933 | 30,226 | |
Income from unconsolidated joint ventures | 1,458 | 4,444 | |
Unrealized gains on interest rate swaps | 15,772 | 49,497 | |
Interest and other income (loss), net | (1,763) | (397) | |
Interest and debt expense | (42,821) | (126,945) | |
Net income before income taxes | 10,146 | 3,784 | |
Income tax expense | (789) | (2,706) | |
Net income | 9,357 | 1,078 | |
Less net (income) loss attributable to noncontrolling interests in: | |||
Consolidated joint ventures and funds | (7,969) | (17,641) | |
Operating Partnership | (272) | 3,239 | |
Net income (loss) attributable to common stockholders | $ 1,116 | $ (13,324) | |
INCOME (LOSS) PER COMMON SHARE - BASIC: | |||
Income (loss) per common share | $ 0.01 | $ (0.06) | |
Weighted average shares outstanding | 212,106,718 | 212,106,718 | |
INCOME (LOSS) PER COMMON SHARE - DILUTED: | |||
Income (loss) per common share | $ 0.01 | $ (0.06) | |
Weighted average shares outstanding | 212,108,079 | 212,106,718 | |
DIVIDENDS PER COMMON SHARE | $ 0.095 | $ 0.324 | [1] |
[1] | Includes the $0.039 cash dividend for the 38 day period following the completion of our initial public offering and related formation transactions and ending on December 31, 2014 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (Parentheticals) | 1 Months Ended |
Dec. 31, 2014$ / shares | |
Income Statement [Abstract] | |
Cash dividend | $ 0.039 |
COMBINED CONSOLIDATED STATEMENT
COMBINED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Predecessor [Member] | ||
REVENUES: | ||
Rental income | $ 8,775 | $ 25,087 |
Tenant reimbursement income | 370 | 1,266 |
Distributions from real estate fund investments | 5,086 | 16,333 |
Realized and unrealized gains, net | 43,233 | 123,150 |
Fee and other income | 13,928 | 25,510 |
Total revenues | 71,392 | 191,346 |
EXPENSES: | ||
Operating | 4,431 | 12,184 |
Depreciation and amortization | 2,982 | 8,548 |
General and administrative | 5,630 | 18,078 |
Profit sharing compensation | 3,392 | 11,624 |
Other | 1,271 | 5,172 |
Total expenses | 17,706 | 55,606 |
Operating income (loss) | 53,686 | 135,740 |
Income from unconsolidated joint ventures | 1,777 | 3,812 |
Unrealized gains on interest rate swaps | (477) | (673) |
Interest and other income (loss), net | 1 | 1,707 |
Interest and debt expense | (8,015) | (23,802) |
Net income before income taxes | 46,972 | 116,784 |
Income tax expense | (820) | (7,925) |
Net income | 46,152 | 108,859 |
Net income attributable to noncontrolling interests | (33,248) | (86,381) |
Net income (loss) attributable to common stockholders | $ 12,904 | $ 22,478 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 9,357 | $ 1,078 |
Other comprehensive (loss) income: | ||
Change in value of interest rate swaps | (18,602) | (18,602) |
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures | 78 | (535) |
Comprehensive loss | (9,167) | (18,059) |
Less comprehensive (income) loss attributable to noncontrolling interests in: | ||
Consolidated joint ventures and funds | (7,969) | (17,641) |
Operating Partnership | 3,356 | 6,987 |
Comprehensive loss attributable to common stockholders | $ (13,780) | $ (28,713) |
COMBINED CONSOLIDATED STATEMEN8
COMBINED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Earnings (Less than) In Excess of Distributions [Member] | Accumulated Other Comprehensive Loss [Member] | Predecessor Shareholders' Equity [Member] | Noncontrolling Interest [Member]Consolidated Joint Ventures and Funds [Member] | Noncontrolling Interest [Member]Operating Partnership [Member] |
Beginning balance (Predecessor [Member]) at Dec. 31, 2013 | $ 2,025,444 | $ 321,769 | $ 1,703,675 | |||||
Net income | Predecessor [Member] | 108,859 | 22,478 | 86,381 | |||||
Contributions | Predecessor [Member] | 223,000 | 9,188 | 213,812 | |||||
Distributions | Predecessor [Member] | (192,488) | (53,206) | (139,282) | |||||
Ending balance (Predecessor [Member]) at Sep. 30, 2014 | $ 2,164,815 | $ 300,229 | 1,864,586 | |||||
Common stock, shares outstanding at Dec. 31, 2014 | 212,106,718 | 212,107,000 | ||||||
Net income | $ 1,078 | $ (13,324) | 17,641 | $ (3,239) | ||||
Common stock, shares outstanding at Sep. 30, 2015 | 212,111,937 | 212,112,000 | ||||||
Beginning balance at Dec. 31, 2014 | $ 5,554,953 | $ 2,122 | $ 3,851,432 | 57,308 | 685,888 | 958,203 | ||
Common shares issued under Omnibus share plan | 5,000 | |||||||
Common units issued under Omnibus share plan | (2,131) | 2,131 | ||||||
Dividends and distributions | (85,462) | (68,724) | (16,738) | |||||
Contributions from noncontrolling interests | 133,111 | 133,111 | ||||||
Distributions to noncontrolling interests | (54,975) | (54,975) | ||||||
Change in value of interest rate swaps | (18,602) | $ (14,959) | (3,643) | |||||
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures | (535) | (430) | (105) | |||||
Adjustments to noncontrolling interests | 43,981 | (43,981) | ||||||
Amortization of equity awards | 6,224 | 1,172 | 5,052 | |||||
Other | (926) | (470) | (134) | (322) | ||||
Ending balance at Sep. 30, 2015 | $ 5,534,866 | $ 2,122 | $ 3,893,984 | $ (24,874) | $ (15,389) | $ 781,343 | $ 897,680 |
COMBINED CONSOLIDATED STATEMEN9
COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 1,078 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 223,658 | |
Unrealized (gains) losses on interest rate swaps | (49,497) | |
Straight-lining of rental income | (49,859) | |
Realized and unrealized gains, net, on real estate fund investments | (15,363) | |
Income from unconsolidated joint ventures | (4,444) | |
Distributions of income from unconsolidated joint ventures | 3,102 | |
Amortization of above and below-market leases, net | (3,239) | |
Amortization of deferred financing costs | 1,754 | |
Realized and unrealized losses (gains) on marketable securities | 1,087 | |
Non-cash stock based compensation expense | 6,224 | |
Other non-cash adjustments | 5,100 | |
Changes in operating assets and liabilities: | ||
Restricted cash | (11,290) | |
Real estate fund investments | 2,357 | |
Accounts and other receivables | (4,621) | |
Deferred charges | (18,754) | |
Other assets | (21,441) | |
Accounts payable and accrued expenses | (8,343) | |
Deferred income taxes | (301) | |
Other liabilities | 1,008 | |
Net cash provided by (used in) operating activities | 58,216 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of, and additions to, rental properties | (68,484) | |
Changes in restricted cash | (26,971) | |
Distributions of capital from unconsolidated joint ventures | 19 | |
Net cash used in investing activities | (95,436) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Contributions from noncontrolling interests | 133,111 | |
Dividends paid to common shareholders and unitholders | (60,396) | |
Distributions to noncontrolling interests | (54,975) | |
Repayment of mortgage notes and loans payable | (1,024) | |
Net cash (used in) provided by financing activities | 16,716 | |
Net decrease in cash and cash equivalents | (20,504) | |
Cash and cash equivalents at beginning of period | 438,599 | |
Cash and cash equivalents at end of period | 418,095 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash payments for interest | 119,278 | |
Cash payments for income taxes, net of refunds | 1,968 | |
NON-CASH TRANSACTIONS: | ||
Dividends and distributions declared but not yet paid | 25,066 | |
Change in value of forward interest rate swap | 18,602 | |
Additions to real estate included in accounts payable and accrued expenses | 12,028 | |
(Purchases) sale of marketable securities | $ (1,293) | |
Predecessor [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 108,859 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 8,548 | |
Unrealized (gains) losses on interest rate swaps | 673 | |
Straight-lining of rental income | 135 | |
Realized and unrealized gains, net, on real estate fund investments | (123,150) | |
Income from unconsolidated joint ventures | (3,812) | |
Distributions of income from unconsolidated joint ventures | 2,039 | |
Amortization of deferred financing costs | 325 | |
Realized and unrealized losses (gains) on marketable securities | (1,082) | |
Other non-cash adjustments | 5,371 | |
Changes in operating assets and liabilities: | ||
Restricted cash | (2,214) | |
Real estate fund investments | (34,515) | |
Accounts and other receivables | (12,377) | |
Deferred charges | 600 | |
Other assets | (980) | |
Accounts payable and accrued expenses | (2,523) | |
Profit sharing payable | (2,689) | |
Deferred income taxes | 15,904 | |
Other liabilities | 6 | |
Net cash provided by (used in) operating activities | (40,882) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of, and additions to, rental properties | (65,637) | |
Changes in restricted cash | (12) | |
Distributions of capital from unconsolidated joint ventures | 1,329 | |
Net cash used in investing activities | (64,320) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Contributions from noncontrolling interests | 213,812 | |
Dividends paid to common shareholders and unitholders | (53,206) | |
Distributions to noncontrolling interests | (139,282) | |
Repayment of mortgage notes and loans payable | (1,877) | |
Contributions from Predecessor shareholders | 9,188 | |
Proceeds from loans payable to noncontrolling interests | 39,075 | |
Offering costs | (15,063) | |
Net cash (used in) provided by financing activities | 52,647 | |
Net decrease in cash and cash equivalents | (52,555) | |
Cash and cash equivalents at beginning of period | 307,161 | |
Cash and cash equivalents at end of period | 254,606 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash payments for interest | 17,000 | |
Cash payments for income taxes, net of refunds | 6,039 | |
NON-CASH TRANSACTIONS: | ||
(Purchases) sale of marketable securities | $ 6,681 |
Organization and Business
Organization and Business | 9 Months Ended |
Sep. 30, 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 September 30, 2015, our portfolio consisted of 12 Class A office properties aggregating approximately 10.4 million square feet that had an occupancy rate of 91.1%. 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 September 30, 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 Unconsolidated Joint Ventures Below is a summary of the 15 private equity real estate funds that were controlled by our Predecessor prior to the completion of the Formation Transactions. 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 Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 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 Financial Services—Investment Companies 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, following 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. In June 2014, the FASB issued an update (“ASU 2014-12”) to ASC Topic 718, Compensation – Stock Compensation In February 2015, the FASB issued an update (“ASU 2015-02”) Amendments to the Consolidation Analysis Consolidation. 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 Interest – Imputation of Interest. ”) Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at 18 June 2015 EITF Meetin g . ASU 2015-15 clarifies the exclusion of line-of-credit arrangements from the scope of ASU 2015-03. Therefore, debt issuance costs related to line-of-credit arrangements can be deferred and presented as an asset that is subsequently amortized over the time of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. In September 2015, the FASB issued an update (“ASU 2015-16”) Simplifying the Accounting for Measurement-Period Adjustments Business Combinations. |
Real Estate Fund Investments
Real Estate Fund Investments | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate Fund [Abstract] | |
Real Estate Fund Investments | 3 . Real Estate Fund Investments Real estate fund investments are presented at fair value on our consolidated balance sheets and 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 sheets. (Amounts in thousands) As of Balance Sheet September 30, 2015 December 31, 2014 Real Estate Fund Investments: Property Funds $ 195,262 $ 183,216 Alternative Investment Funds 141,131 140,171 Total $ 336,393 $ 323,387 Below is a summary of the income from fund investments on our consolidated statements of income. (Amounts in thousands) Three Months Ended Nine Months Ended Income Statement September 30, 2015 September 30, 2015 Investment income $ 3,445 $ 10,793 Investment expenses 239 430 Net investment income 3,206 10,363 Net realized gains 11,955 11,955 Previously recorded unrealized gains on exited investments (6,790 ) (6,058 ) Net unrealized gains 2,562 13,966 Income from real estate fund investments $ 10,933 $ 30,226 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 September 30, 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 September 30, 2015 % Ownership 60 Wall Street One Market Plaza 50 Beale Street Fund II 10.0 % 46.3 % - - Fund III 3.1 % 16.0 % 2.0 % - Fund VII/VII-H 7.2 % - - 42.8 % Total Property Funds 62.3 % 2.0 % 42.8 % Other Investors 37.7 % 98.0 % (1) 57.2 % Total 100.0 % 100.0 % 100.0 % (1) Includes a 49.0% direct ownership interest held by us. 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 September 30, 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 $580,200,000 of committed capital, of which we have invested $86,600,000. On September 1, 2015, PGRESS and PGRESS-H redeemed their preferred equity investment in One Court Square for $42,475,000 resulting in a realized gain on the investment of $7,455,000. On September 30, 2015, Fund VIII made a $40,000,000 mezzanine loan secured by the equity interests in the owner of 1440 Broadway, a 751,546 square foot office and retail property located in Manhattan. The loan bears interest at LIBOR plus 600 bps, matures in October 2019 and has a one-year extension option. The loan is subordinate to $265,000,000 of other debt. The following is a summary of the investments of our Alternative Investment Funds. (Amounts in thousands) % Interest/ As of Fund Investment Type Ownership Dividend Rate Initial Maturity September 30, 2015 December 31, 2014 Fund VIII Mezzanine Loans 1.7% 6.0% - 8.3% Oct-2019 - Jan-2022 $ 86,813 $ 45,947 PGRESS Funds Preferred Equity Investments 4.9% 10.3% Apr-2017 - Feb-2019 54,318 94,224 $ 141,131 $ 140,171 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 Nine Months Ended Income Statement September 30, 2014 September 30, 2014 Realized gains on real estate fund investments $ 33,432 $ 33,432 Unrealized gains on real estate fund investments 9,801 89,718 Realized and unrealized gains, net $ 43,233 $ 123,150 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 statements 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 Nine Months Ended Income Statement September 30, 2014 September 30, 2014 Gross asset management fees $ 7,795 $ 22,731 Eliminated fees (1) (210 ) (991 ) Net asset management fees $ 7,585 $ 21,740 (1) Eliminated fees reflect a reduction in asset management fees from the general partner interest in each of the Funds. The following tables summarize the income statements for the three and nine months ended September 30, 2014 for each of the Property Funds’ underlying investments. (Amounts in thousands) Property Funds' Underlying Investments for the Three Months Ended September 30, 2014 Statements of Income 1633 Broadway 900 Third Ave 31 West 52nd St 1301 Ave of the Americas One Market Plaza Liberty Place 1899 Penn. Ave 2099 Penn. Ave 425 Eye St Revenues: Rental income $ 39,105 $ 8,708 $ 19,885 $ 30,117 $ 17,555 $ 1,469 $ 2,027 $ 51 $ 2,639 Tenant reimbursement income 4,667 800 1,601 2,488 346 475 962 2 214 Fee and other income 1,214 198 489 870 504 16 45 9 - Total revenue 44,986 9,706 21,975 33,475 18,405 1,960 3,034 62 2,853 Expenses: Building operating 15,441 4,249 6,424 13,113 7,264 1,161 1,303 1,231 1,415 Related party management fees 768 262 353 427 191 54 68 19 91 Operating 16,209 4,511 6,777 13,540 7,455 1,215 1,371 1,250 1,506 Depreciation and amortization 3,234 1,318 8,886 12,342 8,641 - 998 - 1,400 General and administrative 23 6 25 45 170 (4 ) (3 ) 340 (30 ) Total expenses 19,466 5,835 15,688 25,927 16,266 1,211 2,366 1,590 2,876 Operating income (loss) 25,520 3,871 6,287 7,548 2,139 749 668 (1,528 ) (23 ) Unrealized gain on interest rate swaps 10,946 2,833 4,261 4,441 10,765 - - - - Interest and debt expense (13,005 ) (3,735 ) (5,622 ) (15,699 ) (13,491 ) (945 ) (1,129 ) (1,489 ) (1,277 ) Unrealized depreciation on investment in real estate - - - - - (17 ) - (5 ) - Net income (loss) before taxes 23,461 2,969 4,926 (3,710 ) (587 ) (213 ) (461 ) (3,022 ) (1,300 ) Income tax benefit (expense) - - - - - 22 97 - 21 Net income (loss) $ 23,461 $ 2,969 $ 4,926 $ (3,710 ) $ (587 ) $ (191 ) $ (364 ) $ (3,022 ) $ (1,279 ) (Amounts in thousands) Property Funds' Underlying Investments for the Nine Months Ended September 30, 2014 Statements of Income 1633 Broadway 900 Third Ave 31 West 52nd St 1301 Ave of the Americas One Market Plaza Liberty Place 1899 Penn. Ave 2099 Penn. Ave 425 Eye St Revenues: Rental income $ 112,075 $ 26,472 $ 56,106 $ 83,866 $ 53,678 $ 5,198 $ 6,071 $ 127 $ 7,939 Tenant reimbursement income 10,580 2,314 4,090 6,922 1,007 1,659 3,069 5 1,041 Fee and other income 2,438 810 3,104 2,527 2,548 39 101 19 - Total revenues 125,093 29,596 63,300 93,315 57,233 6,896 9,241 151 8,980 Expenses: Building operating 42,320 12,332 17,941 38,801 21,265 3,329 3,908 3,454 4,319 Related party management fees 2,253 787 1,008 1,264 585 186 209 21 275 Operating 44,573 13,119 18,949 40,065 21,850 3,515 4,117 3,475 4,594 Depreciation and amortization 8,801 5,049 19,960 30,897 26,327 - 2,921 - 4,193 General and administrative 33 37 59 96 464 12 13 739 84 Total expenses 53,407 18,205 38,968 71,058 48,641 3,527 7,051 4,214 8,871 Operating income (loss) 71,686 11,391 24,332 22,257 8,592 3,369 2,190 (4,063 ) 109 Unrealized gain on interest rate swaps 23,891 5,768 8,549 10,566 21,209 - - - - Interest and debt expense (38,630 ) (11,088 ) (16,691 ) (46,248 ) (40,563 ) (2,835 ) (3,386 ) (3,697 ) (3,797 ) Unrealized depreciation on investment in real estate - - - - - (506 ) - (535 ) - Net income (loss) before taxes 56,947 6,071 16,190 (13,425 ) (10,762 ) 28 (1,196 ) (8,295 ) (3,688 ) Income tax (expense) benefit - - - - - (4 ) 279 - (2,294 ) Net income (loss) $ 56,947 $ 6,071 $ 16,190 $ (13,425 ) $ (10,762 ) $ 24 $ (917 ) $ (8,295 ) $ (5,982 ) |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | 4. Investments in Unconsolidated Joint Ventures The following table summarizes our investments in unconsolidated joint ventures as of September 30, 2015 and December 31, 2014. % Ownership at As of (Amounts in thousands) September 30, 2015 September 30, 2015 December 31, 2014 Investments: 712 Fifth Avenue 50.0 % $ 3,038 $ 1,697 Oder-Center, Germany 9.5 % 3,499 4,052 $ 6,537 $ 5,749 The following table summarizes income from unconsolidated joint ventures for the three and nine months ended September 30, 2015 and 2014. % The The Predecessor Ownership Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (Amounts in thousands) September 30, 2015 September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Our share of Net Income (Loss): 712 Fifth Avenue 50.0 % $ 1,433 $ 4,358 $ 1,845 $ 3,869 1325 Avenue of the Americas n/a - - (68 ) (57 ) 900 Third Avenue (1) n/a - - - - Oder-Center (2) 9.5 % 25 86 - - $ 1,458 $ 4,444 $ 1,777 $ 3,812 (1) As of September 30, 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. 712 Fifth Avenue As of September 30, 2015, we own a 50.0% interest in a joint venture that owns 712 Fifth Avenue, which is accounted under the equity method. The following tables summarize 712 Fifth Avenue’s financial information as of the dates of and for the periods set forth below. (Amounts in thousands) As of Balance Sheets September 30, 2015 December 31, 2014 Rental property, net $ 214,741 $ 221,827 Other assets 42,418 46,126 Total assets $ 257,159 $ 267,953 Mortgage and notes payable $ 246,500 $ 246,500 Other liabilities 16,843 30,321 Total liabilities 263,343 276,821 Equity (1) (6,184 ) (8,868 ) Total liabilities and equity $ 257,159 $ 267,953 (1) The Company The Predecessor (Amounts in thousands) Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Income Statements September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Rental income $ 12,575 $ 37,021 $ 11,920 $ 34,609 Tenant reimbursement income 1,059 3,795 1,116 3,385 Fee and other income 287 910 250 888 Total revenue 13,921 41,726 13,286 38,882 Operating 5,500 17,557 5,852 17,178 Depreciation and amortization 2,945 8,829 2,743 8,268 General and administrative - - 45 100 Total expenses 8,445 26,386 8,640 25,546 Operating income 5,476 15,340 4,646 13,336 Unrealized gain on interest rate swaps 74 2,094 2,692 5,337 Interest and other income, net 3 8 - - Interest and debt expense (2,687 ) (8,726 ) (3,650 ) (10,936 ) Net income $ 2,866 $ 8,716 $ 3,688 $ 7,737 |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Liabilities | 5 . Intangible Assets and Liabilities The following summarizes our intangible assets (primarily acquired above-market leases and acquired in-place leases) and intangible liabilities (primarily acquired below-market leases) as of September 30, 2015 and December 31, 2014. As of (Amounts in thousands) September 30, 2015 December 31, 2014 Intangible assets: Gross amount $ 663,367 $ 689,894 Accumulated amortization (116,935 ) (20,509 ) $ 546,432 $ 669,385 Intangible liabilities: Gross amount $ 222,772 $ 222,985 Accumulated amortization (29,730 ) (3,757 ) $ 193,042 $ 219,228 Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase to rental income of $1,477,000 and $3,239,000 for the three and nine months ended September 30, 2015, respectively. 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 $ 20,130 2017 6,926 2018 8,832 2019 8,051 2020 6,677 Amortization of acquired in-place leases (a component of depreciation and amortization expense) was $29,376,000 and $100,006,000 for the three and nine months ended September 30, 2015, respectively. 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 $ 87,347 2017 55,475 2018 49,128 2019 44,516 2020 39,002 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt The following is a summary of our outstanding debt. Interest Rate at Balance at (Amounts in thousands) Maturity Date Fixed/Variable Rate September 30, 2015 September 30, 2015 December 31, 2014 Mortgages and notes payable 1633 Broadway Dec-2016 Fixed (1) 6.10 % $ 772,100 $ 772,100 Dec-2016 Variable 1.62 % 154,160 154,160 5.35 % 926,260 926,260 900 Third Avenue Nov-2017 Fixed (1) 5.35 % 255,000 255,000 Nov-2017 Variable 1.78 % 19,337 19,337 5.10 % 274,337 274,337 31 West 52nd Street (64.2% interest) Dec-2017 Fixed (1) 5.74 % 337,500 337,500 Dec-2017 Variable 1.70 % 75,990 75,990 5.00 % 413,490 413,490 One Market Plaza (49.0% interest) Dec-2019 Fixed (1) 6.14 % 856,183 853,711 Waterview June-2017 Fixed 5.76 % 210,000 210,000 1899 Pennsylvania Avenue Nov-2020 Fixed 4.88 % 89,465 90,489 Liberty Place June-2018 Fixed 4.50 % 84,000 84,000 Total mortgages and notes payable 5.50 % $ 2,853,735 $ 2,852,287 (1) Represents loans with variable interest rates that have been fixed by interest rate swaps (See Note 7, Derivative Instruments and Hedging Activities ). Revolving Credit Facility As of September 30, 2015, there were no amounts outstanding under our senior unsecured revolving credit facility and $200,000,000 was reserved under a letter of credit. |
Derivatives Instruments and Hed
Derivatives Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments and Hedging Activities | 7. Derivative Instruments and Hedging Activities We manage our market risk on variable rate debt by entering into interest rate swaps to fix the rate on all or a portion of the debt for varying periods through maturity. These interest rate swaps are accounted for as derivative instruments and, pursuant to ASC 815, are recorded on our balance sheet at fair value. Changes in the fair value of interest rate swaps are accounted for based on the hedging relationship and their designation and qualification as either fair value hedges or cash flow hedges. Interest Rate Swaps – Non-designated Hedges As of September 30, 2015, we had 23 interest rate swaps with an aggregate notional amount of $2.2 billion that were not designated as hedges. Changes in the fair value of interest rate swaps that are not designated as hedges are recognized in earnings. In the three and nine months ended September 30, 2015, we recognized unrealized gains of $15,772,000 and $49,497,000, respectively, from the changes in the fair value of these interest rate swaps. The table below provides additional details on our interest rate swaps that are not designated as hedges. Notional Strike Fair Value as of Property Amount Effective Date Maturity Date Rate September 30, 2015 December 31, 2014 (Amounts in thousands) 1633 Broadway $ 772,100 Dec-2006 to Jun-2008 Dec-2016 4.92 % $ 40,043 $ 60,191 900 Third Ave 255,000 Nov-2007 to Nov-2012 Nov-2015 to Nov-2017 4.15 % 14,495 19,158 31 W 52nd Street 337,500 Dec-2007 to Dec-2012 Dec-2015 to Dec-2017 4.49 % 22,114 28,748 One Market Plaza 840,000 Aug-2007 to Aug-2012 Aug-2017 5.02 % 68,047 86,099 Total interest rate swap liabilities related to non-designated hedges $ 144,699 $ 194,196 Interest Rate Swaps – Designated as Cash Flow Hedges On September 16, 2015, we entered into three forward starting interest rate swaps with an aggregate notional amount of $1.0 billion in advance of the anticipated refinancing of the mortgage debt at 1633 Broadway. These interest rate swaps are designated as cash flow hedges. Changes in the fair value of interest rate swaps that are designated as cash flow hedges are recognized in accumulated other comprehensive income (outside of earnings). In the three and nine months ended September 30, 2015, we recognized other comprehensive losses of $18,602,000 from the changes in the fair value of these interest rate swaps. The table below provides additional details on our interest rate swaps that are designated as cash flow hedges. Notional Strike Fair Value as of Property Amount Effective Date Maturity Date Rate September 30, 2015 December 31, 2014 (Amounts in thousands) 1633 Broadway $ 1,000,000 Dec-2015 Dec-2020 to Dec-2022 1.79 % $ 18,602 $ - Total interest rate swap liabilities related to cash flow hedges $ 18,602 $ - |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (“AOCI”) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income (“AOCI”) | 8. Accumulated Other Comprehensive Income (“AOCI”) The following tables set forth the changes in accumulated other comprehensive income (loss) by component. (Amounts in thousands) Total Pro rata share of OCI of unconsolidated joint ventures Change in value of interest rate swaps For the Three Months Ended September 30, 2015 Balance as of June 30, 2015 $ (493 ) $ (493 ) $ - OCI before reclassifications (1) (14,896 ) 63 (14,959 ) Amounts reclassified from AOCI - - - Net current period OCI (14,896 ) 63 (14,959 ) Balance as of September 30, 2015 $ (15,389 ) $ (430 ) $ (14,959 ) For the Nine Months Ended September 30, 2015 Balance as of December 31, 2014 $ - $ - $ - OCI before reclassifications (1) (15,389 ) (430 ) (14,959 ) Amounts reclassified from AOCI - - - Net current period OCI (15,389 ) (430 ) (14,959 ) Balance as of September 30, 2015 $ (15,389 ) $ (430 ) $ (14,959 ) (1) |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 9. Noncontrolling Interests Consolidated Joint Ventures and Funds Noncontrolling interests in consolidated joint ventures and funds consists 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 September 30, 2015 and December 31, 2014, noncontrolling interests in consolidated joint ventures and funds on our consolidated balance sheets aggregated $781,343,000 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 and units issued to management under equity incentive plans. Common units of the Operating Partnership may be tendered for redemption to the Operating Partnership for cash. We, at our option, may assume that obligation and pay the holder either cash or common shares on a one-for-one basis. 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. As of September 30, 2015, noncontrolling interests in the Operating Partnership on our consolidated balance sheets had a carrying amount of $897,680,000 and a redemption value of $867,889,000. |
Variable Interest Entities ("VI
Variable Interest Entities ("VIEs") | 9 Months Ended |
Sep. 30, 2015 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities ("VIEs") | 10 . Variable Interest Entities (“VIEs”) As of September 30, 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) September 30, 2015 December 31, 2014 Investments, at fair value $ 16,854 $ 17,136 Investments, at cost 63,587 63,550 Cash and restricted cash 871 4,976 Accounts and other receivables 454 - Total VIE assets $ 81,766 $ 85,662 Loans payable to noncontrolling interests $ 44,822 $ 42,195 Other liabilities 309 131 Total VIE liabilities $ 45,131 $ 42,326 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 11 . Fair Value Measurements ASC 820, Fair Value Measurement and Disclosures, Financial Assets and Liabilities measured at Fair Value Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consists 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 at September 30, 2015 and December 31, 2014, based on their levels in the fair value hierarchy. As of September 30, 2015 (Amounts in thousands) Total Level 1 Level 2 Level 3 Real estate fund investments: Investments in Property Funds $ 195,262 $ - $ - $ 195,262 Investments in Alternative Investment Funds 141,131 - - 141,131 Total real estate fund investments 336,393 - - 336,393 Marketable securities 20,365 20,365 - - Total assets $ 356,758 $ 20,365 $ - $ 336,393 Interest rate swap liabilities $ 163,301 - $ 163,301 - Total liabilities $ 163,301 $ - $ 163,301 $ - 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 September 30, 2015, the Property Funds had three investments. These investments are classified as Level 3. We obtain third party appraisals at least annually. 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 September 30, 2015 and December 31, 2014. As of September 30, 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 7.00% 7.00% 6.50% - 7.25% 6.83% Terminal capitalization rates 5.00% - 6.00% 5.55% 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 September 30, 2015, the investments in the Alternative Investment Funds were comprised of mezzanine loans and preferred equity investments. These investments are classified as Level 3. Estimates of the fair value of these investments are determined by the standard practice of modeling the contractual cash flows required and discounting it back to its present value at the appropriate 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 (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 September 30, 2015 and December 31, 2014. As of September 30, 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 7.32% - 11.10% 9.14% 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 and nine months ended September 30, 2015 and 2014. The Company The Predecessor Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (Amounts in thousands) September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Beginning balance $ 335,545 $ 323,387 $ 2,402,987 $ 2,158,889 Purchases 40,096 40,118 91,995 256,176 Sales (42,475 ) (42,475 ) (221,661 ) (221,661 ) Net realized gains 7,455 7,455 33,432 33,432 Previously recorded unrealized gains on exited investments (6,790 ) (6,058 ) - - Net unrealized gains 2,562 13,966 9,801 89,718 Ending Balance $ 336,393 $ 336,393 $ 2,316,554 $ 2,316,554 Interest Rate Swaps Interest rate swaps are valued by a third-party specialist. The valuation of these interest rate swaps is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the interest rate swaps and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. Interest rate swaps are classified as Level 2. Financial Assets and Liabilities Not Measured at Fair Value Financial assets not measured at fair value on our consolidated balance sheets consists 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 September 30, 2015 and December 31, 2014. As of September 30, 2015 As of December 31, 2014 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Cash equivalents $ 36,408 $ 36,408 $ 401,215 $ 401,215 Total Assets $ 36,408 $ 36,408 $ 401,215 $ 401,215 As of September 30, 2015 As of December 31, 2014 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Mortgage and notes payable $ 2,853,735 $ 2,802,234 $ 2,852,287 $ 2,796,842 Total Liabilities $ 2,853,735 $ 2,802,234 $ 2,852,287 $ 2,796,842 |
Fee and Other Income
Fee and Other Income | 9 Months Ended |
Sep. 30, 2015 | |
Fee And Other Income [Abstract] | |
Fee and Other Income | 12 . Fee and Other Income The following table sets forth the details of our fee and other income. The Company The Predecessor Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (Amounts in thousands) September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Fee income Property management fees $ 1,559 $ 4,274 $ 3,615 $ 11,630 Acquisition and disposition fees 400 400 6,270 7,308 Construction fees 36 147 1,872 4,302 Other fees 90 579 2,171 2,270 Total fee income 2,085 5,400 13,928 25,510 Other income (1) 4,766 10,894 - - Total fee and other income $ 6,851 $ 16,294 $ 13,928 $ 25,510 (1) Other income is primarily comprised of (i) tenant payments for items such as after hour heating and cooling, freight elevator services and similar expenses and (ii) lease termination income. |
Interest and Other Income
Interest and Other Income | 9 Months Ended |
Sep. 30, 2015 | |
Interest And Other Income [Abstract] | |
Interest and Other Income | 1 3 . Interest and Other Income The following table sets forth the details of interest and other income. The Company The Predecessor Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (Amounts in thousands) September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Mark-to-market of investments in our deferred compensation plans (1) $ (1,940 ) $ (845 ) $ (146 ) $ 1,082 Interest and other income 177 448 147 625 Total interest and other income (loss) $ (1,763 ) $ (397 ) $ 1 $ 1,707 (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 expenses. |
Interest and Debt Expense
Interest and Debt Expense | 9 Months Ended |
Sep. 30, 2015 | |
Interest And Debt Expense [Abstract] | |
Interest and Debt Expense | 14. Interest and Debt Expense The following table sets forth the details of interest and debt expense. The Company The Predecessor Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (Amounts in thousands) September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Interest and debt expense $ 42,237 $ 125,191 $ 7,906 $ 23,477 Amortization of deferred financing costs 584 1,754 109 325 Total interest and debt expense $ 42,821 $ 126,945 $ 8,015 $ 23,802 |
Incentive Compensation
Incentive Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Compensation | 1 5 . Incentive Compensation Stock-Based Compensation We account for all stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation 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 of the Operating Partnership 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 per unit distribution equal to one-tenth of the per share dividends otherwise payable to the Company’s common stockholders with respect to their LTIP Units. If the LTIP Units are ultimately earned based on the achievement of the designated performance objectives, participants will receive cash or additional LTIP Units based on the amount the participants would have received if per unit distributions during the performance measurement period for the earned LTIP Units had equaled per share dividends paid to the Company’s common stockholders less the amount of distributions participants actually received during the performance measurement period. 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 following the conclusion of the performance period, and 25% vesting on each of April 1, 2019 and April 1, 2020. The fair value of awards granted under the 2015 Performance Program on the date of grant was $7,930,000 and is being amortized into expense over the five-year vesting period using a graded vesting attribution method. 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 is 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 $27,894,000 and $28,148,000 as of September 30, 2015 and December 31, 2014, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 16. 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 Nine Months Ended (Amounts in thousands, except per share amounts) September 30, 2015 September 30, 2015 Numerator: Net income (loss) attributable to Paramount Group, Inc. - basic and diluted $ 1,116 $ (13,324 ) Denominator: Denominator for basic income (loss) per share - weighted average shares 212,107 212,107 Effect of dilutive employee stock options and restricted share awards (1) 1 - Denominator for diluted income (loss) per share - weighted average shares 212,108 212,107 Income (loss) per share - basic and diluted $ 0.01 $ (0.06 ) (1) The effect of dilutive securities in the three and nine months ended September 30, 2015 excludes an aggregate of 53,360 and 53,252 weighted average share equivalents, respectively, as their effect was anti-dilutive. |
Related Party
Related Party | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party | 1 7 . Related Party Due to Affiliates As of September 30, 2015 and December 31, 2014, we had an aggregate of $27,299,000 of liabilities that were due to affiliates. These liabilities were comprised of 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 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%. Related Party Transactions In the three months ended September 30, 2015, certain of the Property Funds that were controlled by our Predecessor, received an aggregate of $5,482,000 (of which our share was $121,000), for the reimbursement of certain costs and expenses, from CNBB-RDF Holdings, LP. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 8 . Commitments and Contingencies Insurance We carry commercial general liability coverage on our properties, with limits of liability customary within the industry. 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. 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. 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. 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 September 30, 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 (i.e., September 10, 2018) upon 12 months written notice with the actual purchase occurring no earlier than the five-year anniversary of such sale (i.e., September 10, 2019). 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 | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segments Disclosure | 1 9 . Segments Disclosure The Company 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, following 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 and nine months ended September 30, 2015 and 2014. For the Three Months Ended September 30, 2015 Owned (Amounts in thousands) Properties Other Total Income Statement Data: Revenues Rental income $ 145,711 $ 759 $ 146,470 Tenant reimbursement income 14,405 - 14,405 Fee and other income 4,767 2,084 6,851 Total revenues 164,883 2,843 167,726 Total expenses 134,667 6,492 141,159 Operating income (loss) 30,216 (3,649 ) 26,567 Income from real estate fund investments - 10,933 10,933 Income from unconsolidated joint ventures 1,433 25 1,458 Unrealized gains on interest rate swaps 15,772 - 15,772 Interest and other (loss) income, net 119 (1,882 ) (1,763 ) Interest and debt expense (41,811 ) (1,010 ) (42,821 ) Net income before income taxes 5,729 4,417 10,146 Income tax (expense) benefit 275 (1,064 ) (789 ) Net income 6,004 3,353 9,357 Add: Depreciation and amortization 70,366 288 70,654 General and administrative - 6,666 6,666 Interest and debt expense 41,811 1,010 42,821 Acquisition and transaction related costs - 485 485 Income tax (expense) benefit (275 ) 1,064 789 Net Operating Income from unconsolidated joint ventures 4,210 93 4,303 Less: Income from real estate fund investments - (10,933 ) (10,933 ) Income from unconsolidated joint ventures (1,433 ) (25 ) (1,458 ) Fee income - (2,085 ) (2,085 ) Unrealized gains on interest rate swaps (15,772 ) - (15,772 ) Interest and other (loss) income, net (119 ) 1,882 1,763 Net Operating Income (1) $ 104,792 $ 1,798 $ 106,590 For the Nine Months Ended September 30, 2015 Owned (Amounts in thousands) Properties Other Total Income Statement Data: Revenues Rental income $ 433,537 $ 2,093 $ 435,630 Tenant reimbursement income 39,956 - 39,956 Fee and other income 10,890 5,404 16,294 Total revenues 484,383 7,497 491,880 Total expenses 408,319 36,602 444,921 Operating income (loss) 76,064 (29,105 ) 46,959 Income from real estate fund investments - 30,226 30,226 Income from unconsolidated joint ventures 4,358 86 4,444 Unrealized gains on interest rate swaps 49,497 - 49,497 Interest and other (loss) income, net 304 (701 ) (397 ) Interest and debt expense (120,684 ) (6,261 ) (126,945 ) Net income (loss) before income taxes 9,539 (5,755 ) 3,784 Income tax (expense) benefit 282 (2,988 ) (2,706 ) Net income (loss) 9,821 (8,743 ) 1,078 Add: Depreciation and amortization 222,822 836 223,658 General and administrative - 28,412 28,412 Interest and debt expense 120,684 6,261 126,945 Transfer taxes due in connection with the sale of shares by a former joint venture partner - 5,872 5,872 Acquisition and transaction related costs - 3,960 3,960 Income tax (expense) benefit (282 ) 2,988 2,706 Net Operating Income from unconsolidated joint ventures 12,084 278 12,362 Less: Income from real estate fund investments - (30,226 ) (30,226 ) Income from unconsolidated joint ventures (4,358 ) (86 ) (4,444 ) Fee income - (5,400 ) (5,400 ) Unrealized gains on interest rate swaps (49,497 ) - (49,497 ) Interest and other (loss) income, net (304 ) 701 397 Net Operating Income (1) $ 310,970 $ 4,853 $ 315,823 (1) The Predecessor 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. For the Three Months Ended September 30, 2014 Owned Managed Management (Amounts in thousands) Properties Funds Company Eliminations Total Income Statement Data: Revenues Rental income $ 7,765 $ 1,010 $ - $ - $ 8,775 Tenant reimbursement income 370 - - - 370 Distributions from real estate fund investments - 5,086 - - 5,086 Realized and unrealized gains, net - 43,233 - - 43,233 Fee and other income - - 21,976 (8,048 ) 13,928 Total revenues 8,135 49,329 21,976 (8,048 ) 71,392 Total expenses 6,511 8,107 11,136 (8,048 ) 17,706 Operating income 1,624 41,222 10,840 - 53,686 Income from unconsolidated joint ventures 1,777 - 17,726 (17,726 ) 1,777 Unrealized loss on interest rate swaps - (477 ) - - (477 ) Interest and other income, net (89 ) 75 15 - 1 Interest and debt expense (3,983 ) (4,032 ) - - (8,015 ) Net income (loss) before income taxes (671 ) 36,788 28,581 (17,726 ) 46,972 Income tax expense - - (820 ) - (820 ) Net income (loss) (671 ) 36,788 27,761 (17,726 ) 46,152 Net income attributable to noncontrolling interests - (33,248 ) - - (33,248 ) Net income (loss) attributable to the Predecessor $ (671 ) $ 3,540 $ 27,761 $ (17,726 ) $ 12,904 For the Nine Months Ended September 30, 2014 Owned Managed Management (Amounts in thousands) Properties Funds Company Eliminations Total Income Statement Data: Revenues Rental income $ 23,229 $ 1,858 $ - $ - $ 25,087 Tenant reimbursement income 1,266 - - - 1,266 Distributions from real estate fund investments - 16,333 - - 16,333 Realized and unrealized gains, net - 123,150 - - 123,150 Fee and other income - - 49,886 (24,376 ) 25,510 Total revenues 24,495 141,341 49,886 (24,376 ) 191,346 Total expenses 20,013 25,108 34,861 (24,376 ) 55,606 Operating income 4,482 116,233 15,025 - 135,740 Income from unconsolidated joint ventures 3,812 - 43,584 (43,584 ) 3,812 Unrealized loss on interest rate swaps - (673 ) - - (673 ) Interest and other income, net 1,258 431 18 - 1,707 Interest and debt expense (11,648 ) (12,115 ) (39 ) - (23,802 ) Net income (loss) before income taxes (2,096 ) 103,876 58,588 (43,584 ) 116,784 Income tax expense - - (7,925 ) - (7,925 ) Net income (loss) (2,096 ) 103,876 50,663 (43,584 ) 108,859 Net income attributable to noncontrolling interests - (86,381 ) - - (86,381 ) Net income (loss) attributable to the Predecessor $ (2,096 ) $ 17,495 $ 50,663 $ (43,584 ) $ 22,478 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events On October 1, 2015, we completed the acquisition of the remaining 35.8% ownership interest that we did not own in 31 West 52nd Street from our joint venture partner for $378,000,000, comprised of $230,000,000 in cash and the assumption of $148,000,000 of existing debt. On October 29, 2015, Fund VII and Fund VII-H completed the acquisition of 670 Broadway, a 77,480 square foot office building located in Manhattan, for $112,000,000, comprised of $42,000,000 in cash and $70,000,000 of initial mortgage debt. |
Basis of Presentation and Sig30
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 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 Financial Services—Investment Companies 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, following 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. In June 2014, the FASB issued an update (“ASU 2014-12”) to ASC Topic 718, Compensation – Stock Compensation In February 2015, the FASB issued an update (“ASU 2015-02”) Amendments to the Consolidation Analysis Consolidation. 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 Interest – Imputation of Interest. ”) Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at 18 June 2015 EITF Meetin g . ASU 2015-15 clarifies the exclusion of line-of-credit arrangements from the scope of ASU 2015-03. Therefore, debt issuance costs related to line-of-credit arrangements can be deferred and presented as an asset that is subsequently amortized over the time of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. In September 2015, the FASB issued an update (“ASU 2015-16”) Simplifying the Accounting for Measurement-Period Adjustments Business Combinations. |
Real Estate Fund Investment (Ta
Real Estate Fund Investment (Tables) | 9 Months Ended |
Sep. 30, 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 sheets. (Amounts in thousands) As of Balance Sheet September 30, 2015 December 31, 2014 Real Estate Fund Investments: Property Funds $ 195,262 $ 183,216 Alternative Investment Funds 141,131 140,171 Total $ 336,393 $ 323,387 |
Schedule of Income from Fund Investment | Below is a summary of the income from fund investments on our consolidated statements of income. (Amounts in thousands) Three Months Ended Nine Months Ended Income Statement September 30, 2015 September 30, 2015 Investment income $ 3,445 $ 10,793 Investment expenses 239 430 Net investment income 3,206 10,363 Net realized gains 11,955 11,955 Previously recorded unrealized gains on exited investments (6,790 ) (6,058 ) Net unrealized gains 2,562 13,966 Income from real estate fund investments $ 10,933 $ 30,226 |
Schedule of Investment of Property Funds | The following is a summary of the investments of our Property Funds. As of September 30, 2015 % Ownership 60 Wall Street One Market Plaza 50 Beale Street Fund II 10.0 % 46.3 % - - Fund III 3.1 % 16.0 % 2.0 % - Fund VII/VII-H 7.2 % - - 42.8 % Total Property Funds 62.3 % 2.0 % 42.8 % Other Investors 37.7 % 98.0 % (1) 57.2 % Total 100.0 % 100.0 % 100.0 % (1) Includes a 49.0% direct ownership interest held by us. |
Summary Of Investments Of Alternative Investment Funds | The following is a summary of the investments of our Alternative Investment Funds. (Amounts in thousands) % Interest/ As of Fund Investment Type Ownership Dividend Rate Initial Maturity September 30, 2015 December 31, 2014 Fund VIII Mezzanine Loans 1.7% 6.0% - 8.3% Oct-2019 - Jan-2022 $ 86,813 $ 45,947 PGRESS Funds Preferred Equity Investments 4.9% 10.3% Apr-2017 - Feb-2019 54,318 94,224 $ 141,131 $ 140,171 |
Schedule of Realized and Unrealized Gains from Real Estate Fund Investment | Below is a summary of realized and unrealized gains from real estate fund investments on our consolidated statement of income. (Amounts in thousands) Three Months Ended Nine Months Ended Income Statement September 30, 2014 September 30, 2014 Realized gains on real estate fund investments $ 33,432 $ 33,432 Unrealized gains on real estate fund investments 9,801 89,718 Realized and unrealized gains, net $ 43,233 $ 123,150 |
Schedule of Asset Management Fees | Below is a summary of the asset management fees earned by our Predecessor. (Amounts in thousands) Three Months Ended Nine Months Ended Income Statement September 30, 2014 September 30, 2014 Gross asset management fees $ 7,795 $ 22,731 Eliminated fees (1) (210 ) (991 ) Net asset management fees $ 7,585 $ 21,740 (1) Eliminated fees reflect a reduction in asset management fees from the general partner interest in each of the Funds. |
Schedule of Amounts Recognized in Income Statement | The following tables summarize the income statements for the three and nine months ended September 30, 2014 for each of the Property Funds’ underlying investments. (Amounts in thousands) Property Funds' Underlying Investments for the Three Months Ended September 30, 2014 Statements of Income 1633 Broadway 900 Third Ave 31 West 52nd St 1301 Ave of the Americas One Market Plaza Liberty Place 1899 Penn. Ave 2099 Penn. Ave 425 Eye St Revenues: Rental income $ 39,105 $ 8,708 $ 19,885 $ 30,117 $ 17,555 $ 1,469 $ 2,027 $ 51 $ 2,639 Tenant reimbursement income 4,667 800 1,601 2,488 346 475 962 2 214 Fee and other income 1,214 198 489 870 504 16 45 9 - Total revenue 44,986 9,706 21,975 33,475 18,405 1,960 3,034 62 2,853 Expenses: Building operating 15,441 4,249 6,424 13,113 7,264 1,161 1,303 1,231 1,415 Related party management fees 768 262 353 427 191 54 68 19 91 Operating 16,209 4,511 6,777 13,540 7,455 1,215 1,371 1,250 1,506 Depreciation and amortization 3,234 1,318 8,886 12,342 8,641 - 998 - 1,400 General and administrative 23 6 25 45 170 (4 ) (3 ) 340 (30 ) Total expenses 19,466 5,835 15,688 25,927 16,266 1,211 2,366 1,590 2,876 Operating income (loss) 25,520 3,871 6,287 7,548 2,139 749 668 (1,528 ) (23 ) Unrealized gain on interest rate swaps 10,946 2,833 4,261 4,441 10,765 - - - - Interest and debt expense (13,005 ) (3,735 ) (5,622 ) (15,699 ) (13,491 ) (945 ) (1,129 ) (1,489 ) (1,277 ) Unrealized depreciation on investment in real estate - - - - - (17 ) - (5 ) - Net income (loss) before taxes 23,461 2,969 4,926 (3,710 ) (587 ) (213 ) (461 ) (3,022 ) (1,300 ) Income tax benefit (expense) - - - - - 22 97 - 21 Net income (loss) $ 23,461 $ 2,969 $ 4,926 $ (3,710 ) $ (587 ) $ (191 ) $ (364 ) $ (3,022 ) $ (1,279 ) (Amounts in thousands) Property Funds' Underlying Investments for the Nine Months Ended September 30, 2014 Statements of Income 1633 Broadway 900 Third Ave 31 West 52nd St 1301 Ave of the Americas One Market Plaza Liberty Place 1899 Penn. Ave 2099 Penn. Ave 425 Eye St Revenues: Rental income $ 112,075 $ 26,472 $ 56,106 $ 83,866 $ 53,678 $ 5,198 $ 6,071 $ 127 $ 7,939 Tenant reimbursement income 10,580 2,314 4,090 6,922 1,007 1,659 3,069 5 1,041 Fee and other income 2,438 810 3,104 2,527 2,548 39 101 19 - Total revenues 125,093 29,596 63,300 93,315 57,233 6,896 9,241 151 8,980 Expenses: Building operating 42,320 12,332 17,941 38,801 21,265 3,329 3,908 3,454 4,319 Related party management fees 2,253 787 1,008 1,264 585 186 209 21 275 Operating 44,573 13,119 18,949 40,065 21,850 3,515 4,117 3,475 4,594 Depreciation and amortization 8,801 5,049 19,960 30,897 26,327 - 2,921 - 4,193 General and administrative 33 37 59 96 464 12 13 739 84 Total expenses 53,407 18,205 38,968 71,058 48,641 3,527 7,051 4,214 8,871 Operating income (loss) 71,686 11,391 24,332 22,257 8,592 3,369 2,190 (4,063 ) 109 Unrealized gain on interest rate swaps 23,891 5,768 8,549 10,566 21,209 - - - - Interest and debt expense (38,630 ) (11,088 ) (16,691 ) (46,248 ) (40,563 ) (2,835 ) (3,386 ) (3,697 ) (3,797 ) Unrealized depreciation on investment in real estate - - - - - (506 ) - (535 ) - Net income (loss) before taxes 56,947 6,071 16,190 (13,425 ) (10,762 ) 28 (1,196 ) (8,295 ) (3,688 ) Income tax (expense) benefit - - - - - (4 ) 279 - (2,294 ) Net income (loss) $ 56,947 $ 6,071 $ 16,190 $ (13,425 ) $ (10,762 ) $ 24 $ (917 ) $ (8,295 ) $ (5,982 ) |
Investments in Unconsolidated32
Investments in Unconsolidated Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule Of Equity Method Investments [Line Items] | |
Summary of Investments in Unconsolidated Joint Ventures | The following table summarizes our investments in unconsolidated joint ventures as of September 30, 2015 and December 31, 2014. % Ownership at As of (Amounts in thousands) September 30, 2015 September 30, 2015 December 31, 2014 Investments: 712 Fifth Avenue 50.0 % $ 3,038 $ 1,697 Oder-Center, Germany 9.5 % 3,499 4,052 $ 6,537 $ 5,749 |
Summary of Income from Unconsolidated Joint Ventures | The following table summarizes income from unconsolidated joint ventures for the three and nine months ended September 30, 2015 and 2014. % The The Predecessor Ownership Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (Amounts in thousands) September 30, 2015 September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Our share of Net Income (Loss): 712 Fifth Avenue 50.0 % $ 1,433 $ 4,358 $ 1,845 $ 3,869 1325 Avenue of the Americas n/a - - (68 ) (57 ) 900 Third Avenue (1) n/a - - - - Oder-Center (2) 9.5 % 25 86 - - $ 1,458 $ 4,444 $ 1,777 $ 3,812 (1) As of September 30, 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. |
712 Fifth Avenue [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Summary of Investments in Unconsolidated Joint Ventures | The following tables summarize 712 Fifth Avenue’s financial information as of the dates of and for the periods set forth below. (Amounts in thousands) As of Balance Sheets September 30, 2015 December 31, 2014 Rental property, net $ 214,741 $ 221,827 Other assets 42,418 46,126 Total assets $ 257,159 $ 267,953 Mortgage and notes payable $ 246,500 $ 246,500 Other liabilities 16,843 30,321 Total liabilities 263,343 276,821 Equity (1) (6,184 ) (8,868 ) Total liabilities and equity $ 257,159 $ 267,953 (1) The Company The Predecessor (Amounts in thousands) Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Income Statements September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Rental income $ 12,575 $ 37,021 $ 11,920 $ 34,609 Tenant reimbursement income 1,059 3,795 1,116 3,385 Fee and other income 287 910 250 888 Total revenue 13,921 41,726 13,286 38,882 Operating 5,500 17,557 5,852 17,178 Depreciation and amortization 2,945 8,829 2,743 8,268 General and administrative - - 45 100 Total expenses 8,445 26,386 8,640 25,546 Operating income 5,476 15,340 4,646 13,336 Unrealized gain on interest rate swaps 74 2,094 2,692 5,337 Interest and other income, net 3 8 - - Interest and debt expense (2,687 ) (8,726 ) (3,650 ) (10,936 ) Net income $ 2,866 $ 8,716 $ 3,688 $ 7,737 |
Intangible Assets and Liabili33
Intangible Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Intangible Assets and Liabilities | The following summarizes our intangible assets (primarily acquired above-market leases and acquired in-place leases) and intangible liabilities (primarily acquired below-market leases) as of September 30, 2015 and December 31, 2014. As of (Amounts in thousands) September 30, 2015 December 31, 2014 Intangible assets: Gross amount $ 663,367 $ 689,894 Accumulated amortization (116,935 ) (20,509 ) $ 546,432 $ 669,385 Intangible liabilities: Gross amount $ 222,772 $ 222,985 Accumulated amortization (29,730 ) (3,757 ) $ 193,042 $ 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 $ 20,130 2017 6,926 2018 8,832 2019 8,051 2020 6,677 |
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 $ 87,347 2017 55,475 2018 49,128 2019 44,516 2020 39,002 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following is a summary of our outstanding debt. Interest Rate at Balance at (Amounts in thousands) Maturity Date Fixed/Variable Rate September 30, 2015 September 30, 2015 December 31, 2014 Mortgages and notes payable 1633 Broadway Dec-2016 Fixed (1) 6.10 % $ 772,100 $ 772,100 Dec-2016 Variable 1.62 % 154,160 154,160 5.35 % 926,260 926,260 900 Third Avenue Nov-2017 Fixed (1) 5.35 % 255,000 255,000 Nov-2017 Variable 1.78 % 19,337 19,337 5.10 % 274,337 274,337 31 West 52nd Street (64.2% interest) Dec-2017 Fixed (1) 5.74 % 337,500 337,500 Dec-2017 Variable 1.70 % 75,990 75,990 5.00 % 413,490 413,490 One Market Plaza (49.0% interest) Dec-2019 Fixed (1) 6.14 % 856,183 853,711 Waterview June-2017 Fixed 5.76 % 210,000 210,000 1899 Pennsylvania Avenue Nov-2020 Fixed 4.88 % 89,465 90,489 Liberty Place June-2018 Fixed 4.50 % 84,000 84,000 Total mortgages and notes payable 5.50 % $ 2,853,735 $ 2,852,287 (1) Represents loans with variable interest rates that have been fixed by interest rate swaps (See Note 7, Derivative Instruments and Hedging Activities ). |
Derivatives Instruments and H35
Derivatives Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Interest Rate Swaps | The table below provides additional details on our interest rate swaps that are not designated as hedges Notional Strike Fair Value as of Property Amount Effective Date Maturity Date Rate September 30, 2015 December 31, 2014 (Amounts in thousands) 1633 Broadway $ 772,100 Dec-2006 to Jun-2008 Dec-2016 4.92 % $ 40,043 $ 60,191 900 Third Ave 255,000 Nov-2007 to Nov-2012 Nov-2015 to Nov-2017 4.15 % 14,495 19,158 31 W 52nd Street 337,500 Dec-2007 to Dec-2012 Dec-2015 to Dec-2017 4.49 % 22,114 28,748 One Market Plaza 840,000 Aug-2007 to Aug-2012 Aug-2017 5.02 % 68,047 86,099 Total interest rate swap liabilities related to non-designated hedges $ 144,699 $ 194,196 The table below provides additional details on our interest rate swaps that are designated as cash flow hedges. Notional Strike Fair Value as of Property Amount Effective Date Maturity Date Rate September 30, 2015 December 31, 2014 (Amounts in thousands) 1633 Broadway $ 1,000,000 Dec-2015 Dec-2020 to Dec-2022 1.79 % $ 18,602 $ - Total interest rate swap liabilities related to cash flow hedges $ 18,602 $ - |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (“AOCI”) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component | The following tables set forth the changes in accumulated other comprehensive income (loss) by component. (Amounts in thousands) Total Pro rata share of OCI of unconsolidated joint ventures Change in value of interest rate swaps For the Three Months Ended September 30, 2015 Balance as of June 30, 2015 $ (493 ) $ (493 ) $ - OCI before reclassifications (1) (14,896 ) 63 (14,959 ) Amounts reclassified from AOCI - - - Net current period OCI (14,896 ) 63 (14,959 ) Balance as of September 30, 2015 $ (15,389 ) $ (430 ) $ (14,959 ) For the Nine Months Ended September 30, 2015 Balance as of December 31, 2014 $ - $ - $ - OCI before reclassifications (1) (15,389 ) (430 ) (14,959 ) Amounts reclassified from AOCI - - - Net current period OCI (15,389 ) (430 ) (14,959 ) Balance as of September 30, 2015 $ (15,389 ) $ (430 ) $ (14,959 ) (1) |
Variable Interest Entities ("37
Variable Interest Entities ("VIEs") (Tables) | 9 Months Ended |
Sep. 30, 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) September 30, 2015 December 31, 2014 Investments, at fair value $ 16,854 $ 17,136 Investments, at cost 63,587 63,550 Cash and restricted cash 871 4,976 Accounts and other receivables 454 - Total VIE assets $ 81,766 $ 85,662 Loans payable to noncontrolling interests $ 44,822 $ 42,195 Other liabilities 309 131 Total VIE liabilities $ 45,131 $ 42,326 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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 at September 30, 2015 and December 31, 2014, based on their levels in the fair value hierarchy. As of September 30, 2015 (Amounts in thousands) Total Level 1 Level 2 Level 3 Real estate fund investments: Investments in Property Funds $ 195,262 $ - $ - $ 195,262 Investments in Alternative Investment Funds 141,131 - - 141,131 Total real estate fund investments 336,393 - - 336,393 Marketable securities 20,365 20,365 - - Total assets $ 356,758 $ 20,365 $ - $ 336,393 Interest rate swap liabilities $ 163,301 - $ 163,301 - Total liabilities $ 163,301 $ - $ 163,301 $ - 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 and nine months ended September 30, 2015 and 2014. The Company The Predecessor Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (Amounts in thousands) September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Beginning balance $ 335,545 $ 323,387 $ 2,402,987 $ 2,158,889 Purchases 40,096 40,118 91,995 256,176 Sales (42,475 ) (42,475 ) (221,661 ) (221,661 ) Net realized gains 7,455 7,455 33,432 33,432 Previously recorded unrealized gains on exited investments (6,790 ) (6,058 ) - - Net unrealized gains 2,562 13,966 9,801 89,718 Ending Balance $ 336,393 $ 336,393 $ 2,316,554 $ 2,316,554 |
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 September 30, 2015 and December 31, 2014. As of September 30, 2015 As of December 31, 2014 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Cash equivalents $ 36,408 $ 36,408 $ 401,215 $ 401,215 Total Assets $ 36,408 $ 36,408 $ 401,215 $ 401,215 As of September 30, 2015 As of December 31, 2014 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Mortgage and notes payable $ 2,853,735 $ 2,802,234 $ 2,852,287 $ 2,796,842 Total Liabilities $ 2,853,735 $ 2,802,234 $ 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 September 30, 2015 and December 31, 2014. As of September 30, 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 7.00% 7.00% 6.50% - 7.25% 6.83% Terminal capitalization rates 5.00% - 6.00% 5.55% 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 September 30, 2015 and December 31, 2014. As of September 30, 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 7.32% - 11.10% 9.14% 8.50% - 14.00% 11.07% |
Fee and Other Income (Tables)
Fee and Other Income (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended Three Months Ended Nine Months Ended (Amounts in thousands) September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Fee income Property management fees $ 1,559 $ 4,274 $ 3,615 $ 11,630 Acquisition and disposition fees 400 400 6,270 7,308 Construction fees 36 147 1,872 4,302 Other fees 90 579 2,171 2,270 Total fee income 2,085 5,400 13,928 25,510 Other income (1) 4,766 10,894 - - Total fee and other income $ 6,851 $ 16,294 $ 13,928 $ 25,510 (1) Other income is primarily comprised of (i) tenant payments for items such as after hour heating and cooling, freight elevator services and similar expenses and (ii) lease termination income. |
Interest and Other Income (Tabl
Interest and Other Income (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended Three Months Ended Nine Months Ended (Amounts in thousands) September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Mark-to-market of investments in our deferred compensation plans (1) $ (1,940 ) $ (845 ) $ (146 ) $ 1,082 Interest and other income 177 448 147 625 Total interest and other income (loss) $ (1,763 ) $ (397 ) $ 1 $ 1,707 (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 expenses. |
Interest and Debt Expense (Tabl
Interest and Debt Expense (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended Three Months Ended Nine Months Ended (Amounts in thousands) September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Interest and debt expense $ 42,237 $ 125,191 $ 7,906 $ 23,477 Amortization of deferred financing costs 584 1,754 109 325 Total interest and debt expense $ 42,821 $ 126,945 $ 8,015 $ 23,802 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended (Amounts in thousands, except per share amounts) September 30, 2015 September 30, 2015 Numerator: Net income (loss) attributable to Paramount Group, Inc. - basic and diluted $ 1,116 $ (13,324 ) Denominator: Denominator for basic income (loss) per share - weighted average shares 212,107 212,107 Effect of dilutive employee stock options and restricted share awards (1) 1 - Denominator for diluted income (loss) per share - weighted average shares 212,108 212,107 Income (loss) per share - basic and diluted $ 0.01 $ (0.06 ) (1) The effect of dilutive securities in the three and nine months ended September 30, 2015 excludes an aggregate of 53,360 and 53,252 weighted average share equivalents, respectively, as their effect was anti-dilutive. |
Segments Disclosure (Tables)
Segments Disclosure (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of Each Reportable Segment Information | The following tables provide selected results for each reportable segment for the three and nine months ended September 30, 2015 and 2014. For the Three Months Ended September 30, 2015 Owned (Amounts in thousands) Properties Other Total Income Statement Data: Revenues Rental income $ 145,711 $ 759 $ 146,470 Tenant reimbursement income 14,405 - 14,405 Fee and other income 4,767 2,084 6,851 Total revenues 164,883 2,843 167,726 Total expenses 134,667 6,492 141,159 Operating income (loss) 30,216 (3,649 ) 26,567 Income from real estate fund investments - 10,933 10,933 Income from unconsolidated joint ventures 1,433 25 1,458 Unrealized gains on interest rate swaps 15,772 - 15,772 Interest and other (loss) income, net 119 (1,882 ) (1,763 ) Interest and debt expense (41,811 ) (1,010 ) (42,821 ) Net income before income taxes 5,729 4,417 10,146 Income tax (expense) benefit 275 (1,064 ) (789 ) Net income 6,004 3,353 9,357 Add: Depreciation and amortization 70,366 288 70,654 General and administrative - 6,666 6,666 Interest and debt expense 41,811 1,010 42,821 Acquisition and transaction related costs - 485 485 Income tax (expense) benefit (275 ) 1,064 789 Net Operating Income from unconsolidated joint ventures 4,210 93 4,303 Less: Income from real estate fund investments - (10,933 ) (10,933 ) Income from unconsolidated joint ventures (1,433 ) (25 ) (1,458 ) Fee income - (2,085 ) (2,085 ) Unrealized gains on interest rate swaps (15,772 ) - (15,772 ) Interest and other (loss) income, net (119 ) 1,882 1,763 Net Operating Income (1) $ 104,792 $ 1,798 $ 106,590 For the Nine Months Ended September 30, 2015 Owned (Amounts in thousands) Properties Other Total Income Statement Data: Revenues Rental income $ 433,537 $ 2,093 $ 435,630 Tenant reimbursement income 39,956 - 39,956 Fee and other income 10,890 5,404 16,294 Total revenues 484,383 7,497 491,880 Total expenses 408,319 36,602 444,921 Operating income (loss) 76,064 (29,105 ) 46,959 Income from real estate fund investments - 30,226 30,226 Income from unconsolidated joint ventures 4,358 86 4,444 Unrealized gains on interest rate swaps 49,497 - 49,497 Interest and other (loss) income, net 304 (701 ) (397 ) Interest and debt expense (120,684 ) (6,261 ) (126,945 ) Net income (loss) before income taxes 9,539 (5,755 ) 3,784 Income tax (expense) benefit 282 (2,988 ) (2,706 ) Net income (loss) 9,821 (8,743 ) 1,078 Add: Depreciation and amortization 222,822 836 223,658 General and administrative - 28,412 28,412 Interest and debt expense 120,684 6,261 126,945 Transfer taxes due in connection with the sale of shares by a former joint venture partner - 5,872 5,872 Acquisition and transaction related costs - 3,960 3,960 Income tax (expense) benefit (282 ) 2,988 2,706 Net Operating Income from unconsolidated joint ventures 12,084 278 12,362 Less: Income from real estate fund investments - (30,226 ) (30,226 ) Income from unconsolidated joint ventures (4,358 ) (86 ) (4,444 ) Fee income - (5,400 ) (5,400 ) Unrealized gains on interest rate swaps (49,497 ) - (49,497 ) Interest and other (loss) income, net (304 ) 701 397 Net Operating Income (1) $ 310,970 $ 4,853 $ 315,823 (1) |
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 September 30, 2014 Owned Managed Management (Amounts in thousands) Properties Funds Company Eliminations Total Income Statement Data: Revenues Rental income $ 7,765 $ 1,010 $ - $ - $ 8,775 Tenant reimbursement income 370 - - - 370 Distributions from real estate fund investments - 5,086 - - 5,086 Realized and unrealized gains, net - 43,233 - - 43,233 Fee and other income - - 21,976 (8,048 ) 13,928 Total revenues 8,135 49,329 21,976 (8,048 ) 71,392 Total expenses 6,511 8,107 11,136 (8,048 ) 17,706 Operating income 1,624 41,222 10,840 - 53,686 Income from unconsolidated joint ventures 1,777 - 17,726 (17,726 ) 1,777 Unrealized loss on interest rate swaps - (477 ) - - (477 ) Interest and other income, net (89 ) 75 15 - 1 Interest and debt expense (3,983 ) (4,032 ) - - (8,015 ) Net income (loss) before income taxes (671 ) 36,788 28,581 (17,726 ) 46,972 Income tax expense - - (820 ) - (820 ) Net income (loss) (671 ) 36,788 27,761 (17,726 ) 46,152 Net income attributable to noncontrolling interests - (33,248 ) - - (33,248 ) Net income (loss) attributable to the Predecessor $ (671 ) $ 3,540 $ 27,761 $ (17,726 ) $ 12,904 For the Nine Months Ended September 30, 2014 Owned Managed Management (Amounts in thousands) Properties Funds Company Eliminations Total Income Statement Data: Revenues Rental income $ 23,229 $ 1,858 $ - $ - $ 25,087 Tenant reimbursement income 1,266 - - - 1,266 Distributions from real estate fund investments - 16,333 - - 16,333 Realized and unrealized gains, net - 123,150 - - 123,150 Fee and other income - - 49,886 (24,376 ) 25,510 Total revenues 24,495 141,341 49,886 (24,376 ) 191,346 Total expenses 20,013 25,108 34,861 (24,376 ) 55,606 Operating income 4,482 116,233 15,025 - 135,740 Income from unconsolidated joint ventures 3,812 - 43,584 (43,584 ) 3,812 Unrealized loss on interest rate swaps - (673 ) - - (673 ) Interest and other income, net 1,258 431 18 - 1,707 Interest and debt expense (11,648 ) (12,115 ) (39 ) - (23,802 ) Net income (loss) before income taxes (2,096 ) 103,876 58,588 (43,584 ) 116,784 Income tax expense - - (7,925 ) - (7,925 ) Net income (loss) (2,096 ) 103,876 50,663 (43,584 ) 108,859 Net income attributable to noncontrolling interests - (86,381 ) - - (86,381 ) Net income (loss) attributable to the Predecessor $ (2,096 ) $ 17,495 $ 50,663 $ (43,584 ) $ 22,478 |
Organization and Business - Add
Organization and Business - Additional Information (Details) ft² in Millions | Nov. 24, 2014$ / sharesshares | Sep. 30, 2015ft²PropertiesFund |
Real Estate Properties [Line Items] | ||
Number of office properties | 12 | |
Area of office properties | ft² | 10.4 | |
Office properties occupancy rate | 91.10% | |
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 | Fund | 15 | |
Predecessor [Member] | Primary Funds [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate funds | Fund | 9 | |
Predecessor [Member] | Parallel Funds [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate funds | Fund | 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 | shares | 150,650,000 | |
Common stock, share price | $ / shares | $ 17.50 |
Basis of Presentation and Sig45
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2015Segment | |
Property Plant And Equipment [Line Items] | |
Number of reportable segments | 1 |
Following the Formation Transactions | |
Property Plant And Equipment [Line Items] | |
Number of reportable segments | 1 |
Predecessor [Member] | |
Property Plant And Equipment [Line Items] | |
Number of reportable segments | 3 |
One Market Plaza [Member] | |
Property Plant And Equipment [Line Items] | |
Residual ownership interest | 2.00% |
Real Estate Fund Investments -
Real Estate Fund Investments - Summary of Fair Value of Fund Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Real Estate Fund Disclosure [Abstract] | ||
Property Funds | $ 195,262 | $ 183,216 |
Alternative Investment Funds | 141,131 | 140,171 |
Total | $ 336,393 | $ 323,387 |
Real Estate Fund Investments 47
Real Estate Fund Investments - Schedule of Income from Fund Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Investment Holdings [Line Items] | ||
Income from real estate fund investments | $ 10,933 | $ 30,226 |
Investment Income [Member] | ||
Investment Holdings [Line Items] | ||
Income from real estate fund investments | 3,445 | 10,793 |
Investment Expenses [Member] | ||
Investment Holdings [Line Items] | ||
Income from real estate fund investments | 239 | 430 |
Net Investment Income [Member] | ||
Investment Holdings [Line Items] | ||
Income from real estate fund investments | 3,206 | 10,363 |
Net Realized Gains | ||
Investment Holdings [Line Items] | ||
Income from real estate fund investments | 11,955 | 11,955 |
Previously recorded unrealized gains on exited investments | ||
Investment Holdings [Line Items] | ||
Income from real estate fund investments | (6,790) | (6,058) |
Net Unrealized Gains [Member] | ||
Investment Holdings [Line Items] | ||
Income from real estate fund investments | $ 2,562 | $ 13,966 |
Real Estate Fund Investments 48
Real Estate Fund Investments - Schedule of Investments of Property Funds (Details) | Sep. 30, 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] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 10.00% |
Fund II [Member] | 60 Wall Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 46.30% |
Fund III [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 3.10% |
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 and VII-H [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 7.20% |
Fund VII and VII-H [Member] | 50 Beale Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 42.80% |
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 49
Real Estate Fund Investments - Schedule of Investments of Property Funds (Parenthetical) (Details) - One Market Plaza [Member] | 9 Months Ended |
Sep. 30, 2015 | |
Investment Holdings [Line Items] | |
Ownership interest rate of property | 49.00% |
Other Investors [Member] | |
Investment Holdings [Line Items] | |
Ownership interest rate of property | 49.00% |
Real Estate Fund Investments 50
Real Estate Fund Investments - Additional Information (Details) | 9 Months Ended | |
Sep. 30, 2015USD ($)ft² | Dec. 31, 2014USD ($) | |
Investment Holdings [Line Items] | ||
Aggregate committed capital | $ 580,200,000 | |
Committed capital invested | $ 86,600,000 | |
Area of office properties | ft² | 10,400,000 | |
PGRESS and PGRESS-H | ||
Investment Holdings [Line Items] | ||
Redemption of preferred equity investment | $ 42,475,000 | |
Realized gain on investment | 7,455,000 | |
Property Fund VIII | ||
Investment Holdings [Line Items] | ||
Mezzanine loans | 86,813,000 | $ 45,947,000 |
Property Fund VIII | Second Mortgage | Mezzanine Secured Loan | ||
Investment Holdings [Line Items] | ||
Mezzanine loans | $ 40,000,000 | |
Area of office properties | ft² | 751,546 | |
Loan maturity date | Oct. 31, 2019 | |
Loan extension term | 1 year | |
Subordinate to other debt | The loan is subordinate to $265,000,000 of other debt | |
Subordinate loan | $ 265,000,000 | |
Property Fund VIII | Second Mortgage | Mezzanine Secured Loan | London Interbank Offered Rate L I B O R | ||
Investment Holdings [Line Items] | ||
Basis spread on variable rate | 6.00% |
Real Estate Fund Investments 51
Real Estate Fund Investments - Summary of Investments of Alternative Investment Funds (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Investment Holdings [Line Items] | ||
Mezzanine Loans, Interest Rate | 5.50% | |
Investment , total | $ 141,131 | $ 140,171 |
Property Fund VIII | ||
Investment Holdings [Line Items] | ||
Mezzanine Loans, Ownership | 1.70% | |
Mezzanine Loans, Initial Maturity | Oct. 31, 2019 | |
Mezzanine Loans, Initial Maturity | Jan. 31, 2022 | |
Mezzanine loans | $ 86,813 | 45,947 |
Property Fund VIII | Minimum | ||
Investment Holdings [Line Items] | ||
Mezzanine Loans, Interest Rate | 6.00% | |
Property Fund VIII | Maximum | ||
Investment Holdings [Line Items] | ||
Mezzanine Loans, Interest Rate | 8.30% | |
PGRESS Funds | ||
Investment Holdings [Line Items] | ||
Preferred Equity Investments, Ownership | 4.90% | |
Preferred Equity Investments, Dividend Rate | 10.30% | |
Preferred Equity Investments, Initial Maturity | 2017-04 | |
Preferred Equity Investments, Initial Maturity | 2019-02 | |
Preferred Equity Investments, Investment | $ 54,318 | $ 94,224 |
Real Estate Fund Investments 52
Real Estate Fund Investments - Schedule of Realized and Unrealized Gains from Real Estate Fund Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Investment Holdings [Line Items] | |||
Realized and unrealized gains, net | $ 15,363 | ||
Predecessor [Member] | |||
Investment Holdings [Line Items] | |||
Realized and unrealized gains, net | $ 43,233 | $ 123,150 | |
Realized Gains on Real Estate Fund Investments [Member] | Predecessor [Member] | |||
Investment Holdings [Line Items] | |||
Realized and unrealized gains, net | 33,432 | 33,432 | |
Unrealized Gain on Real Estate Fund Investments [Member] | Predecessor [Member] | |||
Investment Holdings [Line Items] | |||
Realized and unrealized gains, net | $ 9,801 | $ 89,718 |
Real Estate Fund Investments 53
Real Estate Fund Investments - Schedule of Asset Management Fees (Details) - Predecessor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Investment Holdings [Line Items] | ||
Gross asset management fees | $ 7,795 | $ 22,731 |
Eliminated fees | (210) | (991) |
Net asset management fees | $ 7,585 | $ 21,740 |
Real Estate Fund Investments 54
Real Estate Fund Investments - Schedule of Amounts Recognized in Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Real Estate Properties [Line Items] | ||||
Rental income | $ 146,470 | $ 435,630 | ||
Tenant reimbursement income | 14,405 | 39,956 | ||
Fee and other income | 6,851 | 16,294 | ||
Total revenues | 167,726 | 491,880 | ||
Operating | 63,354 | 183,019 | ||
Depreciation and amortization | 70,654 | 223,658 | ||
General and administrative | 6,666 | 28,412 | ||
Total expenses | 141,159 | 444,921 | ||
Operating income (loss) | 26,567 | 46,959 | ||
Unrealized gains on interest rate swaps | 15,772 | 49,497 | ||
Interest and debt expense | (42,821) | (126,945) | ||
Net income before income taxes | 10,146 | 3,784 | ||
Income tax benefit (expense) | (789) | (2,706) | ||
Net income | $ 9,357 | $ 1,078 | ||
1633 Broadway [Member] | ||||
Real Estate Properties [Line Items] | ||||
Rental income | $ 39,105 | $ 112,075 | ||
Tenant reimbursement income | 4,667 | 10,580 | ||
Fee and other income | 1,214 | 2,438 | ||
Total revenues | 44,986 | 125,093 | ||
Building operating | 15,441 | 42,320 | ||
Related party management fees | 768 | 2,253 | ||
Operating | 16,209 | 44,573 | ||
Depreciation and amortization | 3,234 | 8,801 | ||
General and administrative | 23 | 33 | ||
Total expenses | 19,466 | 53,407 | ||
Operating income (loss) | 25,520 | 71,686 | ||
Unrealized gains on interest rate swaps | 10,946 | 23,891 | ||
Interest and debt expense | (13,005) | (38,630) | ||
Net income before income taxes | 23,461 | 56,947 | ||
Net income | 23,461 | 56,947 | ||
900 Third Avenue [Member] | ||||
Real Estate Properties [Line Items] | ||||
Rental income | 8,708 | 26,472 | ||
Tenant reimbursement income | 800 | 2,314 | ||
Fee and other income | 198 | 810 | ||
Total revenues | 9,706 | 29,596 | ||
Building operating | 4,249 | 12,332 | ||
Related party management fees | 262 | 787 | ||
Operating | 4,511 | 13,119 | ||
Depreciation and amortization | 1,318 | 5,049 | ||
General and administrative | 6 | 37 | ||
Total expenses | 5,835 | 18,205 | ||
Operating income (loss) | 3,871 | 11,391 | ||
Unrealized gains on interest rate swaps | 2,833 | 5,768 | ||
Interest and debt expense | (3,735) | (11,088) | ||
Net income before income taxes | 2,969 | 6,071 | ||
Net income | 2,969 | 6,071 | ||
31 West 52nd Street [Member] | ||||
Real Estate Properties [Line Items] | ||||
Rental income | 19,885 | 56,106 | ||
Tenant reimbursement income | 1,601 | 4,090 | ||
Fee and other income | 489 | 3,104 | ||
Total revenues | 21,975 | 63,300 | ||
Building operating | 6,424 | 17,941 | ||
Related party management fees | 353 | 1,008 | ||
Operating | 6,777 | 18,949 | ||
Depreciation and amortization | 8,886 | 19,960 | ||
General and administrative | 25 | 59 | ||
Total expenses | 15,688 | 38,968 | ||
Operating income (loss) | 6,287 | 24,332 | ||
Unrealized gains on interest rate swaps | 4,261 | 8,549 | ||
Interest and debt expense | (5,622) | (16,691) | ||
Net income before income taxes | 4,926 | 16,190 | ||
Net income | 4,926 | 16,190 | ||
1301 Avenue of the Americas [Member] | ||||
Real Estate Properties [Line Items] | ||||
Rental income | 30,117 | 83,866 | ||
Tenant reimbursement income | 2,488 | 6,922 | ||
Fee and other income | 870 | 2,527 | ||
Total revenues | 33,475 | 93,315 | ||
Building operating | 13,113 | 38,801 | ||
Related party management fees | 427 | 1,264 | ||
Operating | 13,540 | 40,065 | ||
Depreciation and amortization | 12,342 | 30,897 | ||
General and administrative | 45 | 96 | ||
Total expenses | 25,927 | 71,058 | ||
Operating income (loss) | 7,548 | 22,257 | ||
Unrealized gains on interest rate swaps | 4,441 | 10,566 | ||
Interest and debt expense | (15,699) | (46,248) | ||
Net income before income taxes | (3,710) | (13,425) | ||
Net income | (3,710) | (13,425) | ||
One Market Plaza [Member] | ||||
Real Estate Properties [Line Items] | ||||
Rental income | 17,555 | 53,678 | ||
Tenant reimbursement income | 346 | 1,007 | ||
Fee and other income | 504 | 2,548 | ||
Total revenues | 18,405 | 57,233 | ||
Building operating | 7,264 | 21,265 | ||
Related party management fees | 191 | 585 | ||
Operating | 7,455 | 21,850 | ||
Depreciation and amortization | 8,641 | 26,327 | ||
General and administrative | 170 | 464 | ||
Total expenses | 16,266 | 48,641 | ||
Operating income (loss) | 2,139 | 8,592 | ||
Unrealized gains on interest rate swaps | 10,765 | 21,209 | ||
Interest and debt expense | (13,491) | (40,563) | ||
Net income before income taxes | (587) | (10,762) | ||
Net income | (587) | (10,762) | ||
Liberty Place [Member] | ||||
Real Estate Properties [Line Items] | ||||
Rental income | 1,469 | 5,198 | ||
Tenant reimbursement income | 475 | 1,659 | ||
Fee and other income | 16 | 39 | ||
Total revenues | 1,960 | 6,896 | ||
Building operating | 1,161 | 3,329 | ||
Related party management fees | 54 | 186 | ||
Operating | 1,215 | 3,515 | ||
General and administrative | (4) | 12 | ||
Total expenses | 1,211 | 3,527 | ||
Operating income (loss) | 749 | 3,369 | ||
Interest and debt expense | (945) | (2,835) | ||
Unrealized depreciation on investment in real estate | (17) | (506) | ||
Net income before income taxes | (213) | 28 | ||
Income tax benefit (expense) | 22 | (4) | ||
Net income | (191) | 24 | ||
1899 Pennsylvania Avenue [Member] | ||||
Real Estate Properties [Line Items] | ||||
Rental income | 2,027 | 6,071 | ||
Tenant reimbursement income | 962 | 3,069 | ||
Fee and other income | 45 | 101 | ||
Total revenues | 3,034 | 9,241 | ||
Building operating | 1,303 | 3,908 | ||
Related party management fees | 68 | 209 | ||
Operating | 1,371 | 4,117 | ||
Depreciation and amortization | 998 | 2,921 | ||
General and administrative | (3) | 13 | ||
Total expenses | 2,366 | 7,051 | ||
Operating income (loss) | 668 | 2,190 | ||
Interest and debt expense | (1,129) | (3,386) | ||
Net income before income taxes | (461) | (1,196) | ||
Income tax benefit (expense) | 97 | 279 | ||
Net income | (364) | (917) | ||
2099 Pennsylvania Avenue [Member] | ||||
Real Estate Properties [Line Items] | ||||
Rental income | 51 | 127 | ||
Tenant reimbursement income | 2 | 5 | ||
Fee and other income | 9 | 19 | ||
Total revenues | 62 | 151 | ||
Building operating | 1,231 | 3,454 | ||
Related party management fees | 19 | 21 | ||
Operating | 1,250 | 3,475 | ||
General and administrative | 340 | 739 | ||
Total expenses | 1,590 | 4,214 | ||
Operating income (loss) | (1,528) | (4,063) | ||
Interest and debt expense | (1,489) | (3,697) | ||
Unrealized depreciation on investment in real estate | (5) | (535) | ||
Net income before income taxes | (3,022) | (8,295) | ||
Net income | (3,022) | (8,295) | ||
425 Eye Street [Member] | ||||
Real Estate Properties [Line Items] | ||||
Rental income | 2,639 | 7,939 | ||
Tenant reimbursement income | 214 | 1,041 | ||
Total revenues | 2,853 | 8,980 | ||
Building operating | 1,415 | 4,319 | ||
Related party management fees | 91 | 275 | ||
Operating | 1,506 | 4,594 | ||
Depreciation and amortization | 1,400 | 4,193 | ||
General and administrative | (30) | 84 | ||
Total expenses | 2,876 | 8,871 | ||
Operating income (loss) | (23) | 109 | ||
Interest and debt expense | (1,277) | (3,797) | ||
Net income before income taxes | (1,300) | (3,688) | ||
Income tax benefit (expense) | 21 | (2,294) | ||
Net income | $ (1,279) | $ (5,982) |
Investments in Unconsolidated55
Investments in Unconsolidated Joint Ventures - Summary of Investments in Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule Of Equity Method Investments [Line Items] | ||
Investments in unconsolidated joint ventures | $ 6,537 | $ 5,749 |
712 Fifth Avenue [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method ownership percentage | 50.00% | |
Investments in unconsolidated joint ventures | $ 3,038 | 1,697 |
Oder-Center, Germany [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method ownership percentage | 9.50% | |
Investments in unconsolidated joint ventures | $ 3,499 | $ 4,052 |
Investments in Unconsolidated56
Investments in Unconsolidated Joint Ventures - Summary of Income from Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Income from unconsolidated joint ventures | $ 1,458 | $ 4,444 | ||
Predecessor [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Income from unconsolidated joint ventures | $ 1,777 | $ 3,812 | ||
712 Fifth Avenue [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method ownership percentage | 50.00% | 50.00% | ||
Income from unconsolidated joint ventures | $ 1,433 | $ 4,358 | ||
712 Fifth Avenue [Member] | Predecessor [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method ownership percentage | 50.00% | 50.00% | ||
Income from unconsolidated joint ventures | 1,845 | 3,869 | ||
1325 Avenue of the Americas [Member] | Predecessor [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Income from unconsolidated joint ventures | $ (68) | $ (57) | ||
Oder-Center, Germany [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Equity method ownership percentage | 9.50% | 9.50% | ||
Income from unconsolidated joint ventures | $ 25 | $ 86 |
Investments in Unconsolidated57
Investments in Unconsolidated Joint Ventures - Additional Information (Details) | Sep. 30, 2015 |
712 Fifth Avenue [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Equity method ownership percentage | 50.00% |
Investments in Unconsolidated58
Investments in Unconsolidated Joint Ventures - Summary of Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Rental property, net | $ 214,741 | $ 214,741 | $ 221,827 | ||
Other assets | 42,418 | 42,418 | 46,126 | ||
Total assets | 257,159 | 257,159 | 267,953 | ||
Mortgage and notes payable | 246,500 | 246,500 | 246,500 | ||
Other liabilities | 16,843 | 16,843 | 30,321 | ||
Total liabilities | 263,343 | 263,343 | 276,821 | ||
Equity | (6,184) | (6,184) | (8,868) | ||
Total liabilities and equity | 257,159 | 257,159 | $ 267,953 | ||
712 Fifth Avenue [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Rental income | 12,575 | 37,021 | |||
Tenant reimbursement income | 1,059 | 3,795 | |||
Fee and other income | 287 | 910 | |||
Total revenue | 13,921 | 41,726 | |||
Operating | 5,500 | 17,557 | |||
Depreciation and amortization | 2,945 | 8,829 | |||
Total expenses | 8,445 | 26,386 | |||
Operating income | 5,476 | 15,340 | |||
Unrealized gain on interest rate swaps | 74 | 2,094 | |||
Interest and other income, net | 3 | 8 | |||
Interest and debt expense | (2,687) | (8,726) | |||
Net income | $ 2,866 | $ 8,716 | |||
712 Fifth Avenue [Member] | Predecessor [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Rental income | $ 11,920 | $ 34,609 | |||
Tenant reimbursement income | 1,116 | 3,385 | |||
Fee and other income | 250 | 888 | |||
Total revenue | 13,286 | 38,882 | |||
Operating | 5,852 | 17,178 | |||
Depreciation and amortization | 2,743 | 8,268 | |||
General and administrative | 45 | 100 | |||
Total expenses | 8,640 | 25,546 | |||
Operating income | 4,646 | 13,336 | |||
Unrealized gain on interest rate swaps | 2,692 | 5,337 | |||
Interest and debt expense | (3,650) | (10,936) | |||
Net income | $ 3,688 | $ 7,737 |
Investments in Unconsolidated59
Investments in Unconsolidated Joint Ventures - Summary of Financial Information (Parenthetical) (Details) | Sep. 30, 2015USD ($) |
712 Fifth Avenue [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Difference between carrying amount of investment and equity | $ 6,131 |
Intangible Assets and Intangibl
Intangible Assets and Intangible Liabilities - Summary of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Intangible assets: | ||
Gross amount | $ 663,367 | $ 689,894 |
Accumulated amortization | (116,935) | (20,509) |
Intangible assets, Net | 546,432 | 669,385 |
Intangible liabilities: | ||
Gross amount | 222,772 | 222,985 |
Accumulated amortization | (29,730) | (3,757) |
Intangible Liabilities, Net | $ 193,042 | $ 219,228 |
Intangible Assets and Liabili61
Intangible Assets and Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | |
Leases, Acquired-in-Place, Market Adjustment [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Rental income | $ 1,477,000 | $ 3,239,000 | |
Leases, Acquired-in-Place [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization of acquired in-place leases | $ 29,376,000 | $ 100,006,000 |
Intangible Assets and Intangi62
Intangible Assets and Intangible Liabilities - Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,016 | $ 20,130 |
2,017 | 6,926 |
2,018 | 8,832 |
2,019 | 8,051 |
2,020 | $ 6,677 |
Intangible Assets and Intangi63
Intangible Assets and Intangible Liabilities - Schedule of Estimated Annual Amortization of Acquired In-Place Leases (Details) - Leases, Acquired-in-Place [Member] $ in Thousands | Sep. 30, 2015USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2,016 | $ 87,347 |
2,017 | 55,475 |
2,018 | 49,128 |
2,019 | 44,516 |
2,020 | $ 39,002 |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Maturity Date | 2017-10 | |
Interest Rate | 5.50% | |
Mortgages and notes payable | $ 2,853,735 | $ 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 | 6.10% | |
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 | 1.62% | |
Mortgages and notes payable | $ 154,160 | 154,160 |
900 Third Avenue [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.10% | |
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 | 1.78% | |
Mortgages and notes payable | $ 19,337 | 19,337 |
31 West 52nd Street [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.00% | |
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 | 1.70% | |
Mortgages and notes payable | $ 75,990 | 75,990 |
One Market Plaza [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2019-12 | |
Interest Rate | 6.14% | |
Mortgages and notes payable | $ 856,183 | 853,711 |
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 | $ 89,465 | 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 Outstanding65
Debt - Summary of Outstanding Debt (Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 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 (
Debt - Additional Information (Details) - USD ($) | Sep. 30, 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 |
Derivatives Instruments and H67
Derivatives Instruments and Hedging Activities - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015USD ($)Derivative | Sep. 30, 2015USD ($)Derivative | Sep. 16, 2015USD ($)Derivative | |
Derivative [Line Items] | |||
Change in value of interest rate swaps | $ (18,602,000) | ||
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Number of derivatives | Derivative | 23 | 23 | |
Aggregate notional amount | $ 2,200,000,000 | $ 2,200,000,000 | |
Unrealized gains on interest rate swaps | 15,772,000 | 49,497,000 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | 1633 Broadway [Member] | |||
Derivative [Line Items] | |||
Aggregate notional amount | 772,100,000 | 772,100,000 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Change in value of interest rate swaps | (18,602,000) | (18,602,000) | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | 1633 Broadway [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Number of derivatives | Derivative | 3 | ||
Aggregate notional amount | $ 1,000,000,000 | $ 1,000,000,000 | $ 1,000,000,000 |
Derivatives Instruments and H68
Derivatives Instruments and Hedging Activities - Summary of Outstanding Interest Rate Swaps (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 16, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Interest rate swap liabilities | $ 163,301,000 | $ 194,196,000 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Notional Amount | 2,200,000,000 | ||
Interest rate swap liabilities | 144,699,000 | 194,196,000 | |
Not Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Notional Amount | $ 772,100,000 | ||
Maturity Date | 2016-12 | ||
Strike Rate | 4.92% | ||
Interest rate swap liabilities | $ 40,043,000 | 60,191,000 | |
Not Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Minimum | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Effective Dates | 2006-12 | ||
Not Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Maximum | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Effective Dates | 2008-06 | ||
Not Designated as Hedging Instrument [Member] | 900 Third Avenue [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Notional Amount | $ 255,000,000 | ||
Strike Rate | 4.15% | ||
Interest rate swap liabilities | $ 14,495,000 | 19,158,000 | |
Not Designated as Hedging Instrument [Member] | 900 Third Avenue [Member] | Minimum | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Effective Dates | 2007-11 | ||
Maturity Date | 2015-11 | ||
Not Designated as Hedging Instrument [Member] | 900 Third Avenue [Member] | Maximum | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Effective Dates | 2012-11 | ||
Maturity Date | 2017-12 | ||
Not Designated as Hedging Instrument [Member] | 31 West 52nd Street [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Notional Amount | $ 337,500,000 | ||
Strike Rate | 4.49% | ||
Interest rate swap liabilities | $ 22,114,000 | 28,748,000 | |
Not Designated as Hedging Instrument [Member] | 31 West 52nd Street [Member] | Minimum | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Effective Dates | 2007-12 | ||
Maturity Date | 2015-12 | ||
Not Designated as Hedging Instrument [Member] | 31 West 52nd Street [Member] | Maximum | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Effective Dates | 2012-12 | ||
Maturity Date | 2017-12 | ||
Not Designated as Hedging Instrument [Member] | One Market Plaza [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Notional Amount | $ 840,000,000 | ||
Maturity Date | 2017-08 | ||
Strike Rate | 5.02% | ||
Interest rate swap liabilities | $ 68,047,000 | $ 86,099,000 | |
Not Designated as Hedging Instrument [Member] | One Market Plaza [Member] | Minimum | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Effective Dates | 2007-08 | ||
Not Designated as Hedging Instrument [Member] | One Market Plaza [Member] | Maximum | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Effective Dates | 2012-08 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Interest rate swap liabilities | $ 18,602,000 | ||
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Notional Amount | $ 1,000,000,000 | $ 1,000,000,000 | |
Effective Dates | 2015-12 | ||
Strike Rate | 1.79% | ||
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Minimum | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Maturity Date | 2020-12 | ||
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Maximum | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Maturity Date | 2022-12 |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Income (“AOCI”) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance as of June 30, 2015 | $ (493) | ||
OCI before reclassifications | [1] | (14,896) | $ (15,389) |
Net current period OCI | (14,896) | (15,389) | |
Balance as of September 30, 2015 | (15,389) | (15,389) | |
Pro Rata Share of OCI of Unconsolidated Joint Ventures [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance as of June 30, 2015 | (493) | ||
OCI before reclassifications | [1] | 63 | (430) |
Net current period OCI | 63 | (430) | |
Balance as of September 30, 2015 | (430) | (430) | |
Change in Value of Interest Rate Swaps [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
OCI before reclassifications | [1] | (14,959) | (14,959) |
Net current period OCI | (14,959) | (14,959) | |
Balance as of September 30, 2015 | $ (14,959) | $ (14,959) | |
[1] | Net of amounts attributable to the noncontrolling interests in the Operating Partnership. |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Noncontrolling Interest [Abstract] | ||
Consolidated joint ventures and funds | $ 781,343 | $ 685,888 |
Operating partnerships | 897,680 | $ 958,203 |
Redemption value | $ 867,889 | |
Common units conversion basis | one-for-one |
Variable Interest Entities ("71
Variable Interest Entities ("VIEs") - Summary of Assets and Liabilities of Variable Interest Entities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Cash and restricted cash | $ 92,696 | $ 55,728 |
Accounts and other receivables | 12,313 | 7,692 |
Total assets | 8,986,806 | 9,030,441 |
Other liabilities | 44,958 | 43,950 |
Total liabilities | 3,451,940 | 3,475,488 |
Variable Interest Entity [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments, at fair value | 16,854 | 17,136 |
Investments, at cost | 63,587 | 63,550 |
Cash and restricted cash | 871 | 4,976 |
Accounts and other receivables | 454 | |
Total assets | 81,766 | 85,662 |
Loans payable to noncontrolling interests | 44,822 | 42,195 |
Other liabilities | 309 | 131 |
Total liabilities | $ 45,131 | $ 42,326 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Values of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in Property Funds | $ 195,262 | $ 183,216 |
Investments in Alternative Investment Funds | 141,131 | 140,171 |
Total real estate fund investments | 336,393 | 323,387 |
Marketable securities | 20,365 | 20,159 |
Total assets | 356,758 | 343,546 |
Interest rate swap liabilities | 163,301 | 194,196 |
Total liabilities | 163,301 | 194,196 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 20,365 | 20,159 |
Total assets | 20,365 | 20,159 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swap liabilities | 163,301 | 194,196 |
Total liabilities | 163,301 | 194,196 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in Property Funds | 195,262 | 183,216 |
Investments in Alternative Investment Funds | 141,131 | 140,171 |
Total real estate fund investments | 336,393 | 323,387 |
Total assets | $ 336,393 | $ 323,387 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Property Funds [Member] | 9 Months Ended |
Sep. 30, 2015Investments | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Number of investments held by fund | 3 |
Minimum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value measurement anticipated investment holding period | 1 year |
Maximum | |
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 - Summa
Fair Value Measurements - Summary of Significant Unobservable Quantitative Inputs Utilized in Determining Fair Value of Investments (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Property Funds [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rates | 7.00% | |
Property Funds [Member] | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rates | 6.50% | |
Terminal capitalization rates | 5.00% | 5.50% |
Property Funds [Member] | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rates | 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 | 7.00% | 6.83% |
Terminal capitalization rates | 5.55% | 5.72% |
Alternative Investment Funds [Member] | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Preferred return | 7.32% | 8.50% |
Alternative Investment Funds [Member] | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Preferred return | 11.10% | 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 | 9.14% | 11.07% |
Fair Value Measurements - Sum75
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 ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 335,545 | $ 323,387 | ||
Purchases | 40,096 | 40,118 | ||
Sales | (42,475) | (42,475) | ||
Net realized gains | 7,455 | 7,455 | ||
Previously recorded unrealized gains on exited investments | (6,790) | (6,058) | ||
Net unrealized gains | 2,562 | 13,966 | ||
Ending Balance | $ 336,393 | $ 336,393 | ||
Predecessor [Member] | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 2,402,987 | $ 2,158,889 | ||
Purchases | 91,995 | 256,176 | ||
Sales | (221,661) | (221,661) | ||
Net realized gains | 33,432 | 33,432 | ||
Net unrealized gains | 9,801 | 89,718 | ||
Ending Balance | $ 2,316,554 | $ 2,316,554 |
Fair Value Measurements - Sum76
Fair Value Measurements - Summary of Carrying Amounts and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | $ 356,758 | $ 343,546 |
Total liabilities | 163,301 | 194,196 |
Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 36,408 | 401,215 |
Total Assets | 36,408 | 401,215 |
Mortgage and notes payable | 2,853,735 | 2,852,287 |
Total liabilities | 2,853,735 | 2,852,287 |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 36,408 | 401,215 |
Total Assets | 36,408 | 401,215 |
Mortgage and notes payable | 2,802,234 | 2,796,842 |
Total liabilities | $ 2,802,234 | $ 2,796,842 |
Fee and Other Income - Schedule
Fee and Other Income - Schedule of Fee and Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fee income | ||||
Property management fees | $ 1,559 | $ 4,274 | ||
Acquisition and disposition fees | 400 | 400 | ||
Construction fees | 36 | 147 | ||
Other fees | 90 | 579 | ||
Total fee income | 2,085 | 5,400 | ||
Other income | 4,766 | 10,894 | ||
Total fee and other income | $ 6,851 | $ 16,294 | ||
Predecessor [Member] | ||||
Fee income | ||||
Property management fees | $ 3,615 | $ 11,630 | ||
Acquisition and disposition fees | 6,270 | 7,308 | ||
Construction fees | 1,872 | 4,302 | ||
Other fees | 2,171 | 2,270 | ||
Total fee income | 13,928 | 25,510 | ||
Total fee and other income | $ 13,928 | $ 25,510 |
Interest and Other Income - Sch
Interest and Other Income - Schedule of Interest and Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||
Mark-to-market of investments in our deferred compensation plans | $ (1,940) | $ (845) | ||
Interest and other income | 177 | 448 | ||
Total interest and other income (loss) | $ (1,763) | $ (397) | ||
Predecessor [Member] | ||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||
Mark-to-market of investments in our deferred compensation plans | $ (146) | $ 1,082 | ||
Interest and other income | 147 | 625 | ||
Total interest and other income (loss) | $ 1 | $ 1,707 |
Interest and Debt Expense - Det
Interest and Debt Expense - Details of Interest and Debt Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest And Debt Expense [Line Items] | ||||
Interest and debt expense | $ 42,237 | $ 125,191 | ||
Amortization of deferred financing costs | 584 | 1,754 | ||
Total interest and debt expense | $ 42,821 | $ 126,945 | ||
Predecessor [Member] | ||||
Interest And Debt Expense [Line Items] | ||||
Interest and debt expense | $ 7,906 | $ 23,477 | ||
Amortization of deferred financing costs | 109 | 325 | ||
Total interest and debt expense | $ 8,015 | $ 23,802 |
Incentive Compensation - Additi
Incentive Compensation - Additional Information (Details) - USD ($) | Apr. 01, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,613,000 | $ 6,018,000 | ||
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 | 14,375,241 | 14,375,241 | ||
Two Thousand Fifteen Performance Program | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Performance measurement period, term | 3 years | |||
Performance measurement period, start date | Apr. 1, 2015 | |||
Performance measurement period, end date | Mar. 31, 2018 | |||
Fair value of awards granted | $ 7,930,000 | |||
Vesting period | 5 years | |||
Two Thousand Fifteen Performance Program | 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 | 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 | 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 | ||||
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 | $ 27,894,000 | $ 27,894,000 | $ 28,148,000 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Numerator: | ||
Net income (loss) attributable to Paramount Group, Inc. - basic and diluted | $ 1,116 | $ (13,324) |
Denominator: | ||
Denominator for basic income (loss) per share - weighted average shares | 212,106,718 | 212,106,718 |
Effect of dilutive employee stock options and restricted share awards | 1,000 | |
Denominator for diluted income (loss) per share - weighted average shares | 212,108,079 | 212,106,718 |
Income (loss) per share - basic and diluted | $ 0.01 | $ (0.06) |
Earnings Per Share - Summary 82
Earnings Per Share - Summary of Computation of Earnings Per Share (Parenthetical) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Effect of dilutive securities excluded from computation of earning per share | 53,360 | 53,252 |
Related Party - Additional Info
Related Party - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Due to affiliates | $ 27,299,000 | $ 27,299,000 | $ 27,299,000 |
Maturity Date | 2017-10 | ||
Note payable, fixed bearing interest rate | 0.50% | ||
CNBB-RDF Holdings, LP | |||
Related Party Transaction [Line Items] | |||
Due to affiliates | 24,500,000 | $ 24,500,000 | |
Amount received for reimbursement of costs and expenses | 121,000 | ||
CNBB-RDF Holdings, LP | Predecessor [Member] | Property Funds [Member] | |||
Related Party Transaction [Line Items] | |||
Amount received for reimbursement of costs and expenses | 5,482,000 | ||
CNBB-RDF Holdings Otto Family | |||
Related Party Transaction [Line Items] | |||
Due to affiliates | $ 2,799,000 | $ 2,799,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2015ft² | |
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 - Additiona
Segments Disclosure - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2015Segment | |
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
Segments Disclosure - Schedule of Each Reportable Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Revenues | ||
Rental income | $ 146,470 | $ 435,630 |
Tenant reimbursement income | 14,405 | 39,956 |
Fee and other income | 6,851 | 16,294 |
Total revenues | 167,726 | 491,880 |
Total expenses | 141,159 | 444,921 |
Operating income (loss) | 26,567 | 46,959 |
Income from real estate fund investments | 10,933 | 30,226 |
Income from unconsolidated joint ventures | 1,458 | 4,444 |
Unrealized gains on interest rate swaps | 15,772 | 49,497 |
Interest and other (loss) income, net | (1,763) | (397) |
Interest and debt expense | (42,821) | (126,945) |
Net income before income taxes | 10,146 | 3,784 |
Income tax benefit (expense) | (789) | (2,706) |
Net income | 9,357 | 1,078 |
Depreciation and amortization | 70,654 | 223,658 |
General and administrative | 6,666 | 28,412 |
Interest and debt expense | 42,821 | 126,945 |
Transfer taxes due in connection with the sale of shares by a former joint venture partner | 5,872 | |
Acquisition and transaction related costs | 485 | 3,960 |
Income tax (expense) benefit | 789 | 2,706 |
Net Operating Income from unconsolidated joint ventures | 4,303 | 12,362 |
Income from real estate fund investments | (10,933) | (30,226) |
Income from unconsolidated joint ventures | (1,458) | (4,444) |
Fee income | (2,085) | (5,400) |
Unrealized (gains) losses on interest rate swaps | (15,772) | (49,497) |
Interest and other (loss) income, net | 1,763 | 397 |
Net Operating Income | 106,590 | 315,823 |
Owned Properties [Member] | ||
Revenues | ||
Rental income | 145,711 | 433,537 |
Tenant reimbursement income | 14,405 | 39,956 |
Fee and other income | 4,767 | 10,890 |
Total revenues | 164,883 | 484,383 |
Total expenses | 134,667 | 408,319 |
Operating income (loss) | 30,216 | 76,064 |
Income from unconsolidated joint ventures | 1,433 | 4,358 |
Unrealized gains on interest rate swaps | 15,772 | 49,497 |
Interest and other (loss) income, net | 119 | 304 |
Interest and debt expense | (41,811) | (120,684) |
Net income before income taxes | 5,729 | 9,539 |
Income tax benefit (expense) | 275 | 282 |
Net income | 6,004 | 9,821 |
Depreciation and amortization | 70,366 | 222,822 |
Interest and debt expense | 41,811 | 120,684 |
Income tax (expense) benefit | (275) | (282) |
Net Operating Income from unconsolidated joint ventures | 4,210 | 12,084 |
Income from unconsolidated joint ventures | (1,433) | (4,358) |
Unrealized (gains) losses on interest rate swaps | (15,772) | (49,497) |
Interest and other (loss) income, net | (119) | (304) |
Net Operating Income | 104,792 | 310,970 |
Other [Member] | ||
Revenues | ||
Rental income | 759 | 2,093 |
Fee and other income | 2,084 | 5,404 |
Total revenues | 2,843 | 7,497 |
Total expenses | 6,492 | 36,602 |
Operating income (loss) | (3,649) | (29,105) |
Income from real estate fund investments | 10,933 | 30,226 |
Income from unconsolidated joint ventures | 25 | 86 |
Interest and other (loss) income, net | (1,882) | (701) |
Interest and debt expense | (1,010) | (6,261) |
Net income before income taxes | 4,417 | (5,755) |
Income tax benefit (expense) | (1,064) | (2,988) |
Net income | 3,353 | (8,743) |
Depreciation and amortization | 288 | 836 |
General and administrative | 6,666 | 28,412 |
Interest and debt expense | 1,010 | 6,261 |
Transfer taxes due in connection with the sale of shares by a former joint venture partner | 5,872 | |
Acquisition and transaction related costs | 485 | 3,960 |
Income tax (expense) benefit | 1,064 | 2,988 |
Net Operating Income from unconsolidated joint ventures | 93 | 278 |
Income from real estate fund investments | (10,933) | (30,226) |
Income from unconsolidated joint ventures | (25) | (86) |
Fee income | (2,085) | (5,400) |
Interest and other (loss) income, net | 1,882 | 701 |
Net Operating Income | $ 1,798 | $ 4,853 |
Segments Disclosure - Schedul87
Segments Disclosure - Schedule of Each Reportable Segment Information of Predecessor (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | ||||
Rental income | $ 146,470 | $ 435,630 | ||
Tenant reimbursement income | 14,405 | 39,956 | ||
Fee and other income | 6,851 | 16,294 | ||
Total revenues | 167,726 | 491,880 | ||
Total expenses | 141,159 | 444,921 | ||
Operating income (loss) | 26,567 | 46,959 | ||
Income from unconsolidated joint ventures | 1,458 | 4,444 | ||
Unrealized gain (loss) on interest rate swaps | 15,772 | 49,497 | ||
Interest and other income (loss), net | (1,763) | (397) | ||
Interest and debt expense | (42,821) | (126,945) | ||
Net income before income taxes | 10,146 | 3,784 | ||
Income tax expense | (789) | (2,706) | ||
Net income | 9,357 | 1,078 | ||
Net income (loss) attributable to common stockholders | 1,116 | (13,324) | ||
Owned Properties [Member] | ||||
Revenues | ||||
Rental income | 145,711 | 433,537 | ||
Tenant reimbursement income | 14,405 | 39,956 | ||
Fee and other income | 4,767 | 10,890 | ||
Total revenues | 164,883 | 484,383 | ||
Total expenses | 134,667 | 408,319 | ||
Operating income (loss) | 30,216 | 76,064 | ||
Income from unconsolidated joint ventures | 1,433 | 4,358 | ||
Unrealized gain (loss) on interest rate swaps | 15,772 | 49,497 | ||
Interest and other income (loss), net | 119 | 304 | ||
Interest and debt expense | (41,811) | (120,684) | ||
Net income before income taxes | 5,729 | 9,539 | ||
Income tax expense | 275 | 282 | ||
Net income | $ 6,004 | $ 9,821 | ||
Predecessor [Member] | ||||
Revenues | ||||
Rental income | $ 8,775 | $ 25,087 | ||
Tenant reimbursement income | 370 | 1,266 | ||
Distributions from real estate fund investments | 5,086 | 16,333 | ||
Realized and unrealized gains, net | 43,233 | 123,150 | ||
Fee and other income | 13,928 | 25,510 | ||
Total revenues | 71,392 | 191,346 | ||
Total expenses | 17,706 | 55,606 | ||
Operating income (loss) | 53,686 | 135,740 | ||
Income from unconsolidated joint ventures | 1,777 | 3,812 | ||
Unrealized gain (loss) on interest rate swaps | (477) | (673) | ||
Interest and other income (loss), net | 1 | 1,707 | ||
Interest and debt expense | (8,015) | (23,802) | ||
Net income before income taxes | 46,972 | 116,784 | ||
Income tax expense | (820) | (7,925) | ||
Net income | 46,152 | 108,859 | ||
Net income attributable to noncontrolling interests | (33,248) | (86,381) | ||
Net income (loss) attributable to common stockholders | 12,904 | 22,478 | ||
Predecessor [Member] | Operating Segments [Member] | Owned Properties [Member] | ||||
Revenues | ||||
Rental income | 7,765 | 23,229 | ||
Tenant reimbursement income | 370 | 1,266 | ||
Total revenues | 8,135 | 24,495 | ||
Total expenses | 6,511 | 20,013 | ||
Operating income (loss) | 1,624 | 4,482 | ||
Income from unconsolidated joint ventures | 1,777 | 3,812 | ||
Interest and other income (loss), net | (89) | 1,258 | ||
Interest and debt expense | (3,983) | (11,648) | ||
Net income before income taxes | (671) | (2,096) | ||
Net income | (671) | (2,096) | ||
Net income (loss) attributable to common stockholders | (671) | (2,096) | ||
Predecessor [Member] | Operating Segments [Member] | Managed Funds [Member] | ||||
Revenues | ||||
Rental income | 1,010 | 1,858 | ||
Distributions from real estate fund investments | 5,086 | 16,333 | ||
Realized and unrealized gains, net | 43,233 | 123,150 | ||
Total revenues | 49,329 | 141,341 | ||
Total expenses | 8,107 | 25,108 | ||
Operating income (loss) | 41,222 | 116,233 | ||
Unrealized gain (loss) on interest rate swaps | (477) | (673) | ||
Interest and other income (loss), net | 75 | 431 | ||
Interest and debt expense | (4,032) | (12,115) | ||
Net income before income taxes | 36,788 | 103,876 | ||
Net income | 36,788 | 103,876 | ||
Net income attributable to noncontrolling interests | (33,248) | (86,381) | ||
Net income (loss) attributable to common stockholders | 3,540 | 17,495 | ||
Predecessor [Member] | Operating Segments [Member] | Management Company [Member] | ||||
Revenues | ||||
Fee and other income | 21,976 | 49,886 | ||
Total revenues | 21,976 | 49,886 | ||
Total expenses | 11,136 | 34,861 | ||
Operating income (loss) | 10,840 | 15,025 | ||
Income from unconsolidated joint ventures | 17,726 | 43,584 | ||
Interest and other income (loss), net | 15 | 18 | ||
Interest and debt expense | (39) | |||
Net income before income taxes | 28,581 | 58,588 | ||
Income tax expense | (820) | (7,925) | ||
Net income | 27,761 | 50,663 | ||
Net income (loss) attributable to common stockholders | 27,761 | 50,663 | ||
Predecessor [Member] | Eliminations [Member] | ||||
Revenues | ||||
Fee and other income | (8,048) | (24,376) | ||
Total revenues | (8,048) | (24,376) | ||
Total expenses | (8,048) | (24,376) | ||
Income from unconsolidated joint ventures | (17,726) | (43,584) | ||
Net income before income taxes | (17,726) | (43,584) | ||
Net income | (17,726) | (43,584) | ||
Net income (loss) attributable to common stockholders | $ (17,726) | $ (43,584) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Oct. 29, 2015USD ($)ft² | Oct. 01, 2015USD ($) | Sep. 30, 2015ft² |
Subsequent Event [Line Items] | |||
Area of office properties | ft² | 10,400,000 | ||
Subsequent Events [Member] | Fund VII and VII-H [Member] | 670 Broadway [Member] | |||
Subsequent Event [Line Items] | |||
Business acquisition, consideration amount | $ 112,000,000 | ||
Business acquisition, consideration cash | $ 42,000,000 | ||
Area of office properties | ft² | 77,480 | ||
Subsequent Events [Member] | Mortgage Debt [Member] | Fund VII and VII-H [Member] | 670 Broadway [Member] | |||
Subsequent Event [Line Items] | |||
Business acquisition, consideration debt | $ 70,000,000 | ||
Subsequent Events [Member] | 31 West 52nd Street [Member] | |||
Subsequent Event [Line Items] | |||
Business acquisition of remaining ownership interest percentage | 35.80% | ||
Business acquisition, consideration amount | $ 378,000,000 | ||
Business acquisition, consideration cash | 230,000,000 | ||
Business acquisition, consideration debt | $ 148,000,000 |