Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 21, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 231,379,820 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Rental property, at cost | |||
Land | $ 2,091,535 | $ 2,091,535 | |
Buildings and improvements | 5,765,748 | 5,757,558 | |
Rental property, at cost | 7,857,283 | 7,849,093 | |
Accumulated depreciation and amortization | (359,583) | (318,161) | |
Rental property, net | 7,497,700 | 7,530,932 | |
Cash and cash equivalents | 125,734 | 162,965 | |
Restricted cash | 75,198 | 29,374 | |
Investments in unconsolidated joint ventures | 35,959 | 6,411 | |
Investments in unconsolidated real estate funds | 23,913 | 28,173 | |
Preferred equity investments | 55,294 | 55,051 | |
Marketable securities | 25,617 | 22,393 | |
Accounts and other receivables, net of allowance of $202 and $202 | 12,564 | 15,251 | |
Deferred rent receivable | 184,571 | 163,695 | |
Deferred charges, net of accumulated amortization of $11,900 and $9,832 | 72,796 | 71,184 | |
Intangible assets, net of accumulated amortization of $171,221 and $166,841 | 389,588 | 412,225 | |
Assets held for sale | 346,685 | 346,685 | |
Other assets | 39,895 | 22,829 | |
Total assets | [1] | 8,885,514 | 8,867,168 |
LIABILITIES AND EQUITY | |||
Notes and mortgages payable, net of deferred financing costs of $48,481 and $43,281 | 3,477,798 | 3,364,898 | |
Revolving credit facility | 200,000 | 230,000 | |
Due to affiliates | 27,299 | 27,299 | |
Accounts payable and accrued expenses | 88,250 | 103,896 | |
Dividends and distributions payable | 25,207 | 25,151 | |
Deferred income taxes | 1,276 | 1,467 | |
Interest rate swap liabilities | 0 | 22,446 | |
Intangible liabilities, net of accumulated amortization of $58,536 and $55,349 | 145,138 | 153,018 | |
Other liabilities | 75,188 | 53,046 | |
Total liabilities | [1] | 4,040,156 | 3,981,221 |
Commitments and contingencies | |||
Paramount Group, Inc. equity: | |||
Common stock $0.01 par value per share; authorized 900,000,000 shares; issued and outstanding 231,379,820 and 230,015,356 shares in 2017 and 2016, respectively | 2,313 | 2,300 | |
Additional paid-in-capital | 4,139,423 | 4,116,987 | |
Earnings less than distributions | (151,417) | (129,654) | |
Accumulated other comprehensive income | 3,696 | 372 | |
Paramount Group, Inc. equity | 3,994,015 | 3,990,005 | |
Noncontrolling interests in: | |||
Consolidated real estate fund | 67,205 | 64,793 | |
Consolidated joint ventures | 228,039 | 253,788 | |
Operating Partnership (33,631,382 and 34,511,214 units outstanding) | 556,099 | 577,361 | |
Total equity | 4,845,358 | 4,885,947 | |
Total liabilities and equity | $ 8,885,514 | $ 8,867,168 | |
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 87.3%. As of March 31, 2017, the assets and liabilities of the Operating Partnership include $1,541,463 and $1,043,902 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities. |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | ||
Accounts and other receivables, allowance | $ 202 | $ 202 | |
Deferred charges, accumulated amortization | 11,900 | 9,832 | |
Intangible assets, accumulated amortization | 171,221 | 166,841 | |
Notes and mortgages payable, deferred financing costs | 48,481 | 43,281 | |
Intangible liabilities, accumulated amortization | $ 58,536 | $ 55,349 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 900,000,000 | 900,000,000 | |
Common stock, shares issued | 231,379,820 | 230,015,356 | |
Common stock, shares outstanding | 231,379,820 | 230,015,356 | |
Operating partnership, units outstanding | 33,631,382 | 34,511,214 | |
Percentage of ownership in operating partnership | 87.30% | ||
Total assets | [1] | $ 8,885,514 | $ 8,867,168 |
Total liabilities | [1] | $ 4,040,156 | 3,981,221 |
Variable Interest Entities [Member] | |||
Percentage of ownership in operating partnership | 87.30% | ||
Total assets | $ 1,541,463 | 1,514,292 | |
Total liabilities | $ 1,043,902 | $ 970,473 | |
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 87.3%. As of March 31, 2017, the assets and liabilities of the Operating Partnership include $1,541,463 and $1,043,902 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
REVENUES: | ||
Rental income | $ 155,390 | $ 141,252 |
Tenant reimbursement income | 12,852 | 10,789 |
Fee and other income | 12,994 | 20,877 |
Total revenues | 181,236 | 172,918 |
EXPENSES: | ||
Operating | 65,971 | 62,945 |
Depreciation and amortization | 62,992 | 74,812 |
General and administrative | 13,581 | 13,961 |
Transaction related costs | 275 | 935 |
Total expenses | 142,819 | 152,653 |
Operating income | 38,417 | 20,265 |
Income from unconsolidated joint ventures | 1,937 | 1,496 |
Income (loss) from unconsolidated real estate funds | 288 | (326) |
Interest and other income, net | 3,200 | 1,700 |
Interest and debt expense | (39,733) | (37,119) |
Unrealized gain on interest rate swaps | 1,802 | 6,860 |
Net income (loss) before income taxes | 5,911 | (7,124) |
Income tax expense | 4,282 | 363 |
Net income (loss) | 1,629 | (7,487) |
Less net (income) loss attributable to noncontrolling interests in: | ||
Consolidated real estate fund | 88 | 674 |
Consolidated joint ventures | (1,291) | (1,252) |
Operating Partnership | (54) | 1,571 |
Net income (loss) attributable to common stockholders | $ 372 | $ (6,494) |
INCOME (LOSS) PER COMMON SHARE - BASIC: | ||
Income (loss) per common share | $ 0 | $ (0.03) |
Weighted average shares outstanding | 230,924,271 | 212,403,593 |
INCOME (LOSS) PER COMMON SHARE - DILUTED: | ||
Income (loss) per common share | $ 0 | $ (0.03) |
Weighted average shares outstanding | 230,958,441 | 212,403,593 |
DIVIDENDS PER COMMON SHARE | $ 0.095 | $ 0.095 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ 1,629 | $ (7,487) |
Other comprehensive income (loss): | ||
Change in value of interest rate swaps | 4,032 | (29,867) |
Pro rata share of other comprehensive (loss) income of unconsolidated joint ventures | (222) | 107 |
Comprehensive income (loss) | 5,439 | (37,247) |
Less comprehensive (income) loss attributable to noncontrolling interests in: | ||
Consolidated real estate fund | 88 | 674 |
Consolidated joint ventures | (1,291) | (1,252) |
Operating Partnership | (540) | 7,359 |
Comprehensive income (loss) attributable to common stockholders | $ 3,696 | $ (30,466) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Earnings Less than Distributions [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member]Consolidated Real Estate Funds [Member] | Noncontrolling Interest [Member]Consolidated Joint Ventures [Member] | Noncontrolling Interest [Member]Operating Partnership [Member] |
Beginning balance (Scenario, Previously Reported) at Dec. 31, 2015 | $ 5,310,550 | $ 2,122 | $ 3,802,858 | $ (36,120) | $ (7,843) | $ 414,637 | $ 236,849 | $ 898,047 |
Beginning balance (Scenario, Adjustment, Deconsolidation of real estate fund investments upon adoption of ASU 2015-02) at Dec. 31, 2015 | (351,035) | (351,035) | ||||||
Beginning balance at Dec. 31, 2015 | 4,959,515 | $ 2,122 | 3,802,858 | (36,120) | (7,843) | 63,602 | 236,849 | 898,047 |
Common Stock Shares Outstanding (Scenario, Previously Reported) at Dec. 31, 2015 | 212,112,000 | |||||||
Common Stock Shares Outstanding at Dec. 31, 2015 | 212,112,000 | |||||||
Net (loss) income | (7,487) | (6,494) | (674) | 1,252 | (1,571) | |||
Common shares issued upon redemption of common units | $ 8 | 14,419 | ||||||
Redemption of minority interest in operating partnerships | (14,427) | |||||||
Common shares issued upon redemption of common units | 830,000 | |||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | 95,000 | |||||||
Dividends and distributions | (25,147) | (20,239) | (4,908) | |||||
Change in value of interest rate swaps | (29,867) | (24,058) | (5,809) | |||||
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures | 107 | 86 | 21 | |||||
Amortization of equity awards | 3,845 | 747 | 3,098 | |||||
Other | 345 | 320 | 18 | 7 | ||||
Ending balance at Mar. 31, 2016 | 4,901,311 | $ 2,130 | 3,818,344 | (62,835) | (31,815) | 62,935 | 238,101 | 874,451 |
Common stock, shares outstanding at Mar. 31, 2016 | 213,037,000 | |||||||
Beginning balance at Dec. 31, 2016 | $ 4,885,947 | $ 2,300 | 4,116,987 | (129,654) | 372 | 64,793 | 253,788 | 577,361 |
Common Stock Shares Outstanding at Dec. 31, 2016 | 230,015,356 | 230,015,000 | ||||||
Net (loss) income | $ 1,629 | 372 | (88) | 1,291 | 54 | |||
Common shares issued upon redemption of common units | $ 13 | 21,803 | ||||||
Redemption of minority interest in operating partnerships | (21,816) | |||||||
Common shares issued upon redemption of common units | 1,304,000 | |||||||
Common units issued under Omnibus share plan, net of shares withheld for taxes | (154) | (154) | ||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | 61,000 | |||||||
Dividends and distributions | (25,207) | (21,981) | (3,226) | |||||
Contributions from noncontrolling interests in joint ventures and funds | 7,472 | 2,500 | 4,972 | |||||
Distributions to noncontrolling interests | (32,012) | (32,012) | ||||||
Change in value of interest rate swaps | 4,032 | 3,518 | 514 | |||||
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures | (222) | (194) | (28) | |||||
Amortization of equity awards | 3,873 | 633 | 3,240 | |||||
Ending balance at Mar. 31, 2017 | $ 4,845,358 | $ 2,313 | $ 4,139,423 | $ (151,417) | $ 3,696 | $ 67,205 | $ 228,039 | $ 556,099 |
Common stock, shares outstanding at Mar. 31, 2017 | 231,379,820 | 231,380,000 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Stockholders Equity [Abstract] | ||
Dividends and distributions, Per share and unit | $ 0.095 | $ 0.095 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 1,629 | $ (7,487) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 62,992 | 74,812 |
Amortization of deferred financing costs | 2,730 | 1,258 |
Straight-lining of rental income | (20,147) | (19,869) |
Amortization of above and below-market leases, net | (3,008) | 3,619 |
Debt breakage costs | 2,715 | |
Unrealized gain on interest rate swaps | (1,802) | (6,860) |
Realized and unrealized (gains) losses on marketable securities | (1,607) | 293 |
(Income) loss from unconsolidated real estate funds | (288) | 326 |
Distributions of earnings from unconsolidated real estate funds | 62 | 79 |
Income from unconsolidated joint ventures | (1,937) | (1,496) |
Distributions of earnings from unconsolidated joint ventures | 24 | 1,584 |
Amortization of stock-based compensation expense | 3,429 | 3,627 |
Other non-cash adjustments | (64) | 842 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | 2,687 | (1,362) |
Deferred charges | (6,654) | (3,617) |
Other assets | (13,678) | (26,038) |
Accounts payable and accrued expenses | (8,355) | 62,019 |
Deferred income taxes | (151) | (714) |
Other liabilities | (861) | 1,023 |
Net cash provided by operating activities | 17,716 | 82,039 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in unconsolidated joint venture | (27,857) | |
Changes in restricted cash | (24,439) | (600) |
Additions to rental properties | (15,087) | (33,193) |
Distributions of capital from unconsolidated real estate funds | 3,845 | |
Net cash used in investing activities | (63,538) | (33,793) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from notes and mortgages payable | 991,556 | |
Repayments of notes and mortgages payable | (873,642) | (354) |
Repayment of borrowings under revolving credit facility | (65,000) | (20,000) |
Borrowings under revolving credit facility | 35,000 | 40,000 |
Distributions to noncontrolling interests | (32,012) | |
Dividends paid to common stockholders | (21,851) | (20,151) |
Settlement of interest rate swap liabilities | (19,425) | |
Contributions from noncontrolling interests | 7,472 | |
Debt issuance costs | (7,338) | |
Distributions paid to common unitholders | (3,300) | (4,917) |
Debt breakage costs | (2,715) | |
Repurchase of shares related to stock compensation agreements and related tax withholdings | (154) | |
Net cash provided by (used in) financing activities | 8,591 | (5,422) |
Net (decrease) increase in cash and cash equivalents | (37,231) | 42,824 |
Cash and cash equivalents at beginning of period | 162,965 | 143,884 |
Decrease in cash due to deconsolidation of real estate fund investments | (7,987) | |
Cash and cash equivalents at end of period | 125,734 | 178,721 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash payments for interest | 41,375 | 34,083 |
Cash payments for income taxes, net of refunds | 1,090 | 417 |
NON-CASH TRANSACTIONS: | ||
Dividends and distributions declared but not yet paid | 25,207 | 25,147 |
Change in fair value of interest rate swaps | (4,032) | 29,867 |
Common shares issued upon redemption of common units | 21,816 | 14,427 |
Additions to real estate included in accounts payable and accrued expenses | 4,712 | 11,064 |
Purchases of marketable securities using restricted cash | 1,615 | 170 |
Write-off of fully amortized and/or depreciated assets | $ 2,306 | 2,795 |
(Decrease) increase due to deconsolidation of real estate fund investments: | ||
Real estate fund investments | (416,438) | |
Loans payable to noncontrolling interests | (45,662) | |
Investments in unconsolidated real estate funds | 27,292 | |
Noncontrolling interests in consolidated real estate funds | $ (351,035) |
Organization and Business
Organization and Business | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization And Business | 1. Organization and Business As used in these consolidated financial statements, unless otherwise indicated, all references to “we,” “us,” “our,” the “Company,” and “Paramount” refer to Paramount Group, Inc., a Maryland corporation, and its consolidated subsidiaries, including Paramount Group Operating Partnership LP (the “Operating Partnership”), a Delaware Limited Partnership. We are a fully-integrated real estate investment trust (“REIT”) focused on owning, operating, managing, acquiring and redeveloping high-quality, Class A office properties in select central business district submarkets of New York City, Washington, D.C. and San Francisco. As of March 31, 2017, our portfolio consisted of 14 Class A office properties aggregating approximately 12.5 million square feet. We conduct our business through, and substantially all of our interests in properties and investments are held by, the Operating Partnership. We are the sole general partner of, and owned approximately 87.3% of, the Operating Partnership as of March 31, 2017. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
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 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, results of operations and changes in 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 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 financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three months ended March 31, 2017, are not necessarily indicative of the operating results for the full year. Significant Accounting Policies There are no material changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016. Recently Issued Accounting Literature In May 2014, the Financial Accounting Standard’s Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, an update to ASC Topic 606, Revenue from Contracts with Customers In February 2016, the FASB issued ASU 2016-02, an update to ASC Topic 842, Leases. In March 2016, the FASB issued ASU 2016-09, an update to ASC Topic 718, Compensation – Stock Compensation. In June 2016, the FASB issued ASU 2016-13, an update to ASC Topic 326 , Financial Instruments – Credit Losses. In August 2016, the FASB issued ASU 2016-15, an update to ASC Topic 230, Statement of Cash Flows In October 2016, the FASB issued ASU 2016-17, an update to ASC Topic 810, Consolidation a reporting entity to consider only its proportionate indirect interest in the VIE held through a common control party in evaluating whether it is the primary beneficiary of a VIE. Currently, ASU 2015-02 requires the reporting entity to treat the common control party’s interest in the VIE as if the reporting entity held the interest itself. In November 2016, the FASB issued ASU 2016-18, an update to ASC Topic 230, Statement of Cash Flows classification and presentation of changes in restricted cash on the statement of cash flows entity’s reconciliation of the beginning-of-period and end-of-period total amounts shown on the statement of cash flows to include restricted cash with cash and cash equivalents. In January 2017, the FASB issued ASU 2017-01, an update to ASC Topic 805, Business Combinations. In February 2017, the FASB issued ASU 2017-05, an update to ASC Topic 610, Other Income. |
Dispositions
Dispositions | 3 Months Ended |
Mar. 31, 2017 | |
Assets Of Disposal Group Including Discontinued Operation [Abstract] | |
Dispositions | 3. Dispositions Waterview On January 12, 2017, we entered into an agreement to sell Waterview, a 636,768 square foot Class A office building in Rosslyn, Virginia, for $460,000,000. In accordance with provisions of ASC 360, Property, Plant and Equipment (Amounts in thousands) As of March 31, 2017 As of December 31, 2016 Land $ 78,300 $ 78,300 Building and improvements, net 251,671 251,671 Deferred charges 14,512 14,512 Deferred rent receivable 2,202 2,202 Assets held for sale $ 346,685 $ 346,685 On May 3, 2017, we completed the sale of Waterview and realized net proceeds of approximately $457,000,000. The sale resulted in a net gain of approximately $110,000,000, which will be recognized in the second quarter of 2017. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | 4 . Investments in Unconsolidated Joint Ventures On January 24, 2017, a joint venture in which we have a 5.2% ownership interest, acquired 60 Wall Street, a 1.6 million square foot office tower in Manhattan, for $1.04 billion from certain of our real estate funds (see Note 5, Real Estate Fund Investments The following tables summarize our investments in unconsolidated joint ventures as of March 31, 2017 and December 31, 2016 and income from these investments for the three months ended March 31, 2017 and 2016. (Amounts in thousands) Paramount As of Our Share of Investments: Ownership March 31, 2017 December 31, 2016 712 Fifth Avenue 50.0% $ 4,842 $ 2,912 60 Wall Street (1) 5.2% 27,852 - Oder-Center, Germany (2) 9.5% 3,265 3,499 Investments in unconsolidated joint ventures $ 35,959 $ 6,411 (Amounts in thousands) Paramount For the Three Months Ended March 31, Our Share of Net Income (Loss): Ownership 2017 2016 712 Fifth Avenue 50.0% $ 1,930 $ 1,476 60 Wall Street (1) 5.2% (5 ) - Oder-Center, Germany (2) 9.5% 12 20 Income from unconsolidated joint ventures $ 1,937 $ 1,496 (1) Represents our share of earnings from the date of acquisition through March 31, 2017. (2) We account for our interest in Oder-Center, Germany on a one-quarter lag basis. 712 Fifth Avenue As of March 31, 2017, we own a 50% interest in a joint venture that owns 712 Fifth Avenue, which is accounted for under the equity method. The following tables provide summarized financial information of 712 Fifth Avenue as of the dates and for the periods set forth below. (Amounts in thousands) As of Balance Sheets: March 31, 2017 December 31, 2016 Rental property, net $ 206,700 $ 207,632 Other assets 46,173 40,701 Total assets $ 252,873 $ 248,333 Notes and mortgages payable, net $ 246,092 $ 245,990 Other liabilities 9,361 8,783 Total liabilities 255,453 254,773 Equity (1) (2,580 ) (6,440 ) Total liabilities and equity $ 252,873 $ 248,333 (1) The carrying amount of our investment is greater than our share of the equity by approximately $6,130. This basis difference resulted from distributions in excess of the equity in net earnings of 712 Fifth Avenue. (Amounts in thousands) For the Three Months Ended March 31, Income Statements: 2017 2016 Rental income $ 12,945 $ 12,678 Tenant reimbursement income 1,308 1,116 Fee and other income 126 518 Total revenues 14,379 14,312 Operating expenses 5,966 5,617 Depreciation and amortization 2,920 3,008 Total expenses 8,886 8,625 Operating income 5,493 5,687 Interest and other income, net 24 14 Interest and debt expense (2,825 ) (2,748 ) Unrealized gain on interest rate swaps 1,168 - Net income $ 3,860 $ 2,953 |
Real Estate Fund Investments
Real Estate Fund Investments | 3 Months Ended |
Mar. 31, 2017 | |
Real Estate Fund [Abstract] | |
Real Estate Fund Investments | 5 . Real Estate Fund Investments Unconsolidated Real Estate Funds We manage four Property Funds comprised of (i) Paramount Group Real Estate Fund II, L.P. (“Fund II”), (ii) Paramount Group Real Estate Fund III, L.P. (“Fund III”), (iii) Paramount Group Real Estate Fund VII, L.P. (“Fund VII”) and (iv) Paramount Group Real Estate Fund VII-H, L.P. (“Fund VII-H”). We also manage Paramount Group Real Estate Fund VIII L.P. (“Fund VIII”), our Alternative Investment Fund, which invests in mortgage and mezzanine loans and preferred equity investments. As of December 31, 2016, Fund II and Fund III collectively owned a 62.3% interest in 60 Wall Street, a 1.6 million square foot office tower in Manhattan. On January 24, 2017, Fund II and Fund III, together with the other investors that owned the remaining 37.7% interest, sold their interests in 60 Wall Street to a newly formed joint venture, in which we have a 5.2% ownership interest. Accordingly, beginning on January 24, 2017, we began accounting for our investment in 60 Wall Street under the equity method (see Note 4, Investments in Unconsolidated Joint Ventures The following tables summarize our investments in these unconsolidated real estate funds as of March 31, 2017 and December 31, 2016, and income or loss recognized from these investments for the three months ended March 31, 2017 and 2016. As of (Amounts in thousands) March 31, 2017 December 31, 2016 Our Share of Investments: Property funds $ 19,250 $ 22,811 Alternative investment fund 4,663 5,362 Investments in unconsolidated real estate funds $ 23,913 $ 28,173 For the Three Months Ended March 31, 2017 Alternative (Amounts in thousands) Total Property Funds Investment Fund Our Share of Net Income: Net investment income (loss) $ 53 $ (7 ) $ 60 Net realized gains 179 179 - Net unrealized income 96 78 18 Carried interest (40 ) (40 ) - Income from unconsolidated real estate funds (1) $ 288 $ 210 $ 78 For the Three Months Ended March 31, 2016 Alternative (Amounts in thousands) Total Property Funds Investment Fund Our Share of Net (Loss) Income: Net investment (loss) income $ (539 ) $ (569 ) $ 30 Net unrealized income (loss) 229 240 (11 ) Carried interest (16 ) (16 ) - (Loss) income from unconsolidated real estate funds (1) $ (326 ) $ (345 ) $ 19 (1) Excludes asset management and other fee income from real estate funds, which is included as a component of “fee and other income” in our consolidated statements of income. As of March 31, 2017, we own a 10.0% interest in Fund II, a 3.1% interest in Fund III, and a 7.5% interest in Fund VII, which are accounted for under the equity method. The following tables provide summarized financial information for Fund II, Fund III and Fund VII as of the dates and for the periods set forth below. (Amounts in thousands) As of March 31, 2017 As of December 31, 2016 Balance Sheets: Fund II Fund III Fund VII Fund II Fund III Fund VII Real estate investments $ 11,134 $ 19,697 $ 165,690 $ 64,989 $ 39,376 $ 165,556 Cash and cash equivalents 931 2,185 878 1,297 2,221 741 Other assets 115 - - 127 - - Total assets $ 12,180 $ 21,882 $ 166,568 $ 66,413 $ 41,597 $ 166,297 Other liabilities $ 58 $ 53 $ 1,967 $ 60 $ 49 $ 1,483 Total liabilities 58 53 1,967 60 49 1,483 Equity 12,122 21,829 164,601 66,353 41,548 164,814 Total liabilities and equity $ 12,180 $ 21,882 $ 166,568 $ 66,413 $ 41,597 $ 166,297 For the Three Months Ended March 31, (Amounts in thousands) 2017 2016 Income Statements: Fund II Fund III Fund VII Fund II Fund III Fund VII Investment income $ - $ 1,140 $ 185 $ - $ - $ - Investment expenses 196 10 476 687 52 530 Net investment (loss) income (196 ) 1,130 (291 ) (687 ) (52 ) (530 ) Net realized losses (15,201 ) (5,253 ) - - - - Net unrealized (losses) gains (4,997 ) (2,989 ) 134 1,425 625 1,106 (Loss) income from real estate fund investments $ (20,394 ) $ (7,112 ) $ (157 ) $ 738 $ 573 $ 576 |
Preferred Equity Investments
Preferred Equity Investments | 3 Months Ended |
Mar. 31, 2017 | |
Schedule Of Investments [Abstract] | |
Preferred Equity Investments | 6 . Preferred Equity Investments As of March 31, 2017, we own a 24.4% interest in PGRESS Equity Holdings L.P., an entity that owns certain preferred equity investments. The following is a summary of the preferred equity investments. (Amounts in thousands, except square feet) Paramount Dividend Initial As of Preferred Equity Investment Ownership Rate Maturity March 31, 2017 December 31, 2016 470 Vanderbilt Avenue (1) 24.4% 10.3% Feb-2019 $ 35,662 $ 35,613 2 Herald Square (2) 24.4% 10.3% Apr-2017 19,632 19,438 Total preferred equity investments $ 55,294 $ 55,051 (1) Represents a $33,750 preferred equity investment in a partnership that owns 470 Vanderbilt Avenue, a 650,000 square foot office building in Brooklyn, New York. The preferred equity has a dividend rate of 10.3%, of which 8.0% was paid in cash through February 2016 and the unpaid portion accreted to the balance of the investment. Subsequent to February 2016, the entire 10.3% dividend is being paid in cash. (2) Represents a $17,500 preferred equity investment in a partnership that owns 2 Herald Square, a 369,000 square foot office retail property in Manhattan. The preferred equity has a dividend rate of 10.3%, of which 7.0% is paid currently and the remainder accretes to the balance of the investment. The preferred equity investment has two one-year extension options. On April 11, 2017, the partnership that owns 2 Herald Square failed to extend the maturity date or redeem the preferred equity investment, together with accrued and unpaid dividends and we are currently in active negotiation with the borrower to resolve the matter. |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Liabilities | 7. Intangible Assets and Liabilities The following summarizes our intangible assets (acquired above-market leases and acquired in-place leases) and intangible liabilities (acquired below-market leases) as of March 31, 2017 and December 31, 2016. As of (Amounts in thousands) March 31, 2017 December 31, 2016 Intangible assets: Gross amount $ 560,809 $ 579,066 Accumulated amortization (171,221 ) (166,841 ) $ 389,588 $ 412,225 Intangible liabilities: Gross amount $ 203,674 $ 208,367 Accumulated amortization (58,536 ) (55,349 ) $ 145,138 $ 153,018 Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase to rental income of $3,008,000 for the three months ended March 31, 2017 and a decrease to rental income of $3,619,000 for the three months ended March 31, 2016. The three months ended March 31, 2016 included $9,834,000 of expense, from the write-off of an above-market lease asset in connection with the termination of a tenant’s lease and $3,915,000 of income from the acceleration of a below-market lease liability in connection with a tenant’s lease modification. Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2018 is as follows. (Amounts in thousands) 2018 $ 14,220 2019 12,010 2020 9,625 2021 4,546 2022 1,181 Amortization of acquired in-place leases (a component of depreciation and amortization expense) was $17,774,000 and $30,692,000 for the three months ended March 31, 2017 and 2016, respectively. Estimated annual amortization of acquired in-place leases for each of the five succeeding years commencing January 1, 2018 is as follows. (Amounts in thousands) 2018 $ 54,581 2019 48,184 2020 41,073 2021 28,268 2022 23,654 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt On January 19, 2017, we completed a $975,000,000 refinancing of One Market Plaza, a 1.6 million square foot Class A office and retail property in San Francisco, California. The new seven-year interest-only loan matures in February 2024 and has a fixed rate of 4.03%. The following is a summary of our outstanding debt. Maturity Fixed/ Interest Rate as of As of (Amounts in thousands) Date Variable Rate March 31, 2017 March 31, 2017 December 31, 2016 Notes and mortgages payable 1633 Broadway Dec-2022 Fixed (1) 3.54 % $ 1,000,000 $ 1,000,000 Dec-2022 L + 175 bps 2.73 % 30,100 (2) 13,544 (2) 3.52 % 1,030,100 1,013,544 One Market Plaza (49.0% interest) Feb-2024 Fixed 4.03 % 975,000 860,546 n/a n/a n/a - 12,414 4.03 % 975,000 872,960 1301 Avenue of the Americas Nov-2021 Fixed 3.05 % 500,000 500,000 Nov-2021 L + 180 bps 2.61 % 350,000 350,000 2.87 % 850,000 850,000 31 West 52nd Street May-2026 Fixed 3.80 % 500,000 500,000 1899 Pennsylvania Avenue Nov-2020 Fixed 4.88 % 87,179 (3) 87,675 Liberty Place June-2018 Fixed 4.50 % 84,000 (3) 84,000 Total notes and mortgages payable 3.60 % 3,526,279 3,408,179 Less: deferred financing costs (48,481 ) (43,281 ) Total notes and mortgages payable, net $ 3,477,798 $ 3,364,898 Revolving Credit Facility Nov-2018 L + 125 bps 2.23 % $ 200,000 (3) $ 230,000 (1) Represents loan with variable interest rates that has been fixed by interest rate swaps. See Note 9, Derivative Instruments and Hedging Activities (2) Represents amounts outstanding under an option to increase the loan balance up to $250,000, at LIBOR plus 175 basis points, if certain performance hurdles relating to the property are satisfied. (3) Repaid on May 4, 2017. See Note 22, Subsequent Events |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 9. 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 Topic 815, are recorded on our consolidated balance sheets 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. We have agreements with various derivative counterparties that contain provisions wherein a default on our indebtedness could be deemed a default on our derivative obligations, which would require us to either post collateral up to the fair value of our derivative obligations or settle the obligations for cash. As of March 31, 2017, we did not have any obligations relating to our swaps that contained such provisions. Interest Rate Swaps – Designated as Cash Flow Hedges As of March 31, 2017, we have interest rate swaps with an aggregate notional amount of $1.0 billion that are designated as cash flow hedges. We also have entered into a forward starting interest rate swaps with an aggregate notional amount of $400,000,000 to extend the maturity of certain swaps for an additional year. Changes in the fair value of interest rate swaps that are designated as cash flow hedges are recognized in “other comprehensive income (loss)” (outside of earnings). We recognized other comprehensive income of $4,032,000 for the three months ended March 31, 2017 and losses of $29,867,000 for the three months ended March 31, 2016, from the changes in the fair value of these interest rate swaps. During the next twelve months, we estimate that $5,558,000 of the amounts recognized in accumulated other comprehensive income (loss) will be reclassified as an increase to interest expense. 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 March 31, 2017 December 31, 2016 (Amounts in thousands) 1633 Broadway $ 1,000,000 Dec-2015 Dec-2020 to Dec-2022 1.79 % $ 2,890 $ - 1633 Broadway 400,000 Dec-2020 Dec-2021 2.35 % 62 139 Total interest rate swap assets designated as cash flow hedges (included in "other assets") $ 2,952 $ 139 1633 Broadway $ 1,000,000 Dec-2015 Dec-2020 to Dec-2022 1.79 % $ - $ 1,219 Total interest rate swap liabilities designated as cash flow hedges $ - $ 1,219 Interest Rate Swaps – Non-designated Hedges As of March 31, 2017, we did not have any interest rate swaps that were not designated as hedges. At December 31, 2016, we had interest rate swap liabilities that had a fair value of $21,227,000, which were terminated on January 19, 2017 in connection with the refinancing of One Market Plaza (see Note 8, Debt |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 10. Accumulated Other Comprehensive Income (Loss) The following table sets forth changes in accumulated other comprehensive income, by component for the three months ended March 31, 2017 and 2016. For the Three Months Ended March 31, (Amounts in thousands) 2017 2016 Amount of income (loss) related to the effective portion of cash flow hedges recognized in other comprehensive loss (1) $ 1,306 $ (26,839 ) Amounts reclassified from accumulated other comprehensive income into interest expense (1) 2,212 2,781 Amount of (loss) income related to unconsolidated joint ventures recognized in other comprehensive loss (1) (2) (194 ) 86 Amount of gain (loss) related to the ineffective portion of cash flow hedges and amount excluded from effectiveness testing - - (1) (2) |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 11. Noncontrolling Interests Consolidated Real Estate Fund Noncontrolling interests in our consolidated real estate fund consists of equity interests held by third parties in the Residential Development Fund (“Residential Fund”). As of March 31, 2017 and December 31, 2016, the noncontrolling interest in our consolidated real estate fund aggregated $67,205,000 and $64,793,000, respectively. Consolidated Joint Ventures Noncontrolling interests in consolidated joint ventures consist of equity interests held by third parties in One Market Plaza and PGRESS Equity Holdings L.P. As of March 31, 2017 and December 31, 2016, noncontrolling interests in our consolidated joint ventures aggregated $228,039,000 and $253,788,000, respectively. Operating Partnership Noncontrolling interests in the Operating Partnership represent 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 March 31, 2017 and December 31, 2016, noncontrolling interests in the Operating Partnership on our consolidated balance sheets had a carrying amount of $556,099,000 and $577,361,000, respectively and a redemption value of $545,165,000 and $551,834,000, respectively. |
Variable Interest Entities ("VI
Variable Interest Entities ("VIEs") | 3 Months Ended |
Mar. 31, 2017 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities ("VIEs") | 12. Variable Interest Entities (“VIEs”) In the normal course of business, we are the general partner of various types of investment vehicles, which may be considered VIEs. We may, from time to time, own equity or debt securities through vehicles, each of which are considered variable interests. Our involvement in financing the operations of the VIEs is generally limited to our investments in the entity. We consolidate these entities when we are determined to be the primary beneficiary. Consolidated VIEs We are the sole general partner of, and own approximately 87.3% of, the Operating Partnership as of March 31, 2017. The Operating Partnership is considered a VIE and is consolidated in our consolidated financial statements. Since we conduct our business through, and substantially all of our interests are held by the Operating Partnership, the assets and liabilities on our consolidated financial statements represent the assets and liabilities of the Operating Partnership. As of March 31, 2017 and December 31, 2016, the Operating Partnership held variable interests in the entities owning a real estate fund, preferred equity investments and a property that were determined to be VIEs. The Operating Partnership is required to consolidate its interest in these entities because it is deemed to be the primary beneficiary and has the power to direct the activities of these entities that most significantly affect economic performance and the obligation to absorb losses and rights to receive benefits that could potentially be significant to the entity. The assets of these consolidated VIEs may only be used to settle the obligations of the entities and such obligations are secured only by the assets of the entities and are non-recourse to the Operating Partnership or us. The table below summarizes the assets and liabilities of consolidated VIEs of the Operating Partnership. As of (Amounts in thousands) March 31, 2017 December 31, 2016 Rental property, net $ 1,331,814 $ 1,336,810 Cash and restricted cash 61,047 17,054 Preferred equity investments 55,294 55,051 Accounts and other receivables 584 5,966 Deferred rent receivable 37,339 32,103 Deferred charges, net 6,044 695 Intangible assets, net 48,922 52,139 Other assets 419 14,474 Total VIE assets $ 1,541,463 $ 1,514,292 Notes and mortgages payable, net $ 967,833 $ 872,960 Accounts payable and other accrued expenses 19,292 21,077 Intangible liabilities, net 45,650 48,654 Interest rate swap liabilities - 21,227 Other liabilities 11,127 6,555 Total VIE liabilities $ 1,043,902 $ 970,473 Unconsolidated VIEs As of March 31, 2017, the Operating Partnership held variable interests in entities that own certain real estate funds that were deemed to be VIEs. The table below summarizes our investments in these unconsolidated real estate funds. As of March 31, 2017 Asset Management Fees Maximum (Amounts in thousands) Investments and other Receivables Risk of Loss Unconsolidated real estate funds $ 23,913 $ 2,015 $ 25,928 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 13. Fair Value Measurements ASC Topic 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 consist of marketable securities (which represent the assets in our deferred compensation plan, for which there is a corresponding liability on our consolidated balance sheets) and interest rate swaps. The table below aggregates the fair values of these financial assets and liabilities as of March 31, 2017 and December 31, 2016, based on their levels in the fair value hierarchy. As of March 31, 2017 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 25,617 $ 25,617 $ - $ - Interest rate swap assets (included in "other assets") 2,952 - 2,952 - Total assets $ 28,569 $ 25,617 $ 2,952 $ - As of December 31, 2016 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 22,393 $ 22,393 $ - $ - Interest rate swap assets (included in "other assets") 139 - 139 - Total assets $ 22,532 $ 22,393 $ 139 $ - Interest rate swap liabilities $ 22,446 $ - $ 22,446 $ - Total liabilities $ 22,446 $ - $ 22,446 $ - 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 preferred equity investments. Estimates of the fair value of these investments are determined by the standard practice of modeling the contractual cash flows required under the investment and discounting it back to its present value at the appropriate current risk adjusted interest rate. The preferred equity investments are classified as Level 3. Financial liabilities not measured at fair value include notes and mortgages payable and the revolving credit facility. 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 payments we would be required to make under the instrument. These instruments would be classified as Level 2. The following is a summary of the carrying amounts and fair value of these financial instruments as of March 31, 2017 and December 31, 2016. As of March 31, 2017 As of December 31, 2016 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Preferred equity investments $ 55,294 $ 55,573 $ 55,051 $ 55,300 Total assets $ 55,294 $ 55,573 $ 55,051 $ 55,300 As of March 31, 2017 As of December 31, 2016 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Notes and mortgages payable $ 3,526,279 $ 3,511,376 $ 3,408,179 $ 3,371,262 Revolving credit facility 200,000 200,018 230,000 230,018 Total liabilities $ 3,726,279 $ 3,711,394 $ 3,638,179 $ 3,601,280 |
Fee and Other Income
Fee and Other Income | 3 Months Ended |
Mar. 31, 2017 | |
Fee And Other Income [Abstract] | |
Fee and Other Income | 14. Fee and Other Income The following table sets forth the details of our fee and other income. For the Three Months Ended March 31, (Amounts in thousands) 2017 2016 Fee income Property management $ 1,610 $ 1,521 Asset management 2,266 1,714 Acquisition and disposition 5,320 - Other 360 182 Total fee income 9,556 3,417 Lease termination income 66 10,955 (1) Other income (2) 3,372 6,505 Total fee and other income $ 12,994 $ 20,877 (1) Includes $10,861 from the termination of a lease with a tenant at 1633 Broadway. (2) Primarily comprised of income from tenant requested services, including overtime heating and cooling. |
Interest and Other Income, net
Interest and Other Income, net | 3 Months Ended |
Mar. 31, 2017 | |
Interest And Other Income [Abstract] | |
Interest and Other Income, net | 15. Interest and Other Income, net The following table sets forth the details of interest and other income. For the Three Months Ended March 31, (Amounts in thousands) 2017 2016 Preferred equity investment income (1) $ 1,413 $ 1,416 Interest and other income 85 80 Mark-to-market of investments in our deferred compensation plans (2) 1,702 204 Total interest and other income, net $ 3,200 $ 1,700 (1) Represents income from our preferred equity investments in PGRESS Equity Holdings L.P., of which our 24.4% share is $344 and $345 for the three months ended March 31, 2017 and 2016, respectively. See Note 6, Preferred Equity Investments (2) 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 | 3 Months Ended |
Mar. 31, 2017 | |
Interest And Debt Expense [Abstract] | |
Interest and Debt Expense | 16. Interest and Debt Expense The following table sets forth the details of interest and debt expense. For the Three Months Ended March 31, (Amounts in thousands) 2017 2016 Interest expense $ 34,288 $ 35,861 Debt breakage costs 2,715 - Amortization of deferred financing costs 2,730 1,258 Total interest and debt expense $ 39,733 $ 37,119 |
Incentive Compensation
Incentive Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Compensation | 17. Incentive Compensation Stock-Based Compensation We account for all stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation 2017 Performance Program On January 30, 2017, the Compensation Committee approved the 2017 Performance Program, a multiyear performance-based long-term equity (“LTE”) compensation program. The purpose of the 2017 Performance Program is to further align the interests of our stockholders with that of management by encouraging our senior officers to create stockholder value in a “pay for performance” structure. Under the 2017 Performance Program, participants may earn awards in the form of Long Term Incentive Plan (“LTIP”) units of our Operating Partnership based on our Total Shareholder Return (“TSR”) over a three-year performance measurement period beginning on January 1, 2017 and continuing through December 31, 2019, on both an absolute basis and relative basis. 25.0% of the award is earned if we outperform a predetermined absolute TSR and the remaining 75.0% is earned if we outperform a predetermined relative TSR. Specifically, participants begin to earn awards under the 2017 Performance Program if our TSR for the performance measurement period equals or exceeds 18.0% on an absolute basis and is in the 30th percentile of the performance of the SNL Office REIT Index constituents on a relative basis, and awards will be fully earned if our TSR for the performance measurement period equals or exceeds 30.0% on an absolute basis and exceeds the 80 th If the designated performance objectives are achieved, awards earned under the 2017 Performance Program will also be subject to vesting based on continued employment with us through December 31, 2020, with 50.0% of each award vesting following the conclusion of the performance measurement period, and the remaining 50.0% vesting on December 31, 2020. The Company’s named executive officers, as defined, are required to hold earned awards for an additional one-year following vesting. The fair value of the awards granted under the 2017 Performance Program on the date of the grant was $10,520,000 and is being amortized into expense over the four-year vesting period using a graded vesting attribution method. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 18. 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 and diluted income (loss) per common share, which includes the weighted average number of common shares outstanding and the effect of dilutive potential common shares, if any. For the Three Months Ended March 31, (Amounts in thousands, except per share amounts) 2017 2016 Numerator: Net income (loss) attributable to common stockholders $ 372 $ (6,494 ) Earnings allocated to unvested participating securities (14 ) (9 ) Numerator for income (loss) per common share - basic and diluted $ 358 $ (6,503 ) Denominator: Denominator for basic income (loss) per common share - weighted average shares 230,924 212,404 Effect of dilutive employee stock options and restricted share awards (1) 34 - Denominator for diluted income (loss) per common share - weighted average shares 230,958 212,404 Income (loss) per common share - basic and diluted $ 0.00 $ (0.03 ) (1) The effect of dilutive securities for the three months ended March 31, 2017 and 2016 excludes 35,998 and 52,592 weighted average share equivalents, respectively. |
Related Party
Related Party | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party | 19. Related Party Due to Affiliates As of March 31, 2017 and December 31, 2016, 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 partially owned by Katharina Otto-Bernstein (a member of our Board of Directors) $34,000 of interest expense in connection with these notes, . Management Agreements We provide property management, leasing and other related services to certain properties owned by members of the Otto Family. We recognized an aggregate of $202,000 and $208,000 for the three months ended March 31, 2017 and 2016, respectively, of fee income, in connection with these agreements, which is included as a component of “fee and other income” on our consolidated statements of income. As of March 31, 2017, amounts owed to us under these agreements aggregated $33,000, which are included as a component of “accounts and other receivables, net” on our consolidated balance sheet. We also provide property management, asset management, leasing and other related services to our unconsolidated joint ventures and real estate funds. For the three months ended March 31, 2017 and 2016, we recognized $8,406,000 and $2,240,000, respectively, of fee income in connection with these agreements. As of March 31, 2017, amounts owed to us under these agreements aggregated $2,860,000, which are included as a component of “accounts and other receivables, net” on our consolidated balance sheet. Hamburg Trust Consulting GMBH (“HTC”) We have an agreement with HTC, a licensed broker in Germany, to supervise selling efforts for our private equity real estate funds (or investments in feeder vehicles for these funds) to investors in Germany, including distribution of securitized notes of a feeder vehicle for Fund VIII. Pursuant to this agreement, we have agreed to pay HTC for the costs incurred to sell investments in this feeder vehicle, which primarily consist of commissions paid to third party agents, and other incremental costs incurred by HTC as a result of the engagement, plus, in each case, a mark-up of 10%. HTC is 100% owned by Albert Behler, our Chairman, Chief Executive Officer and President. For the three months ended March 31, 2017 and 2016, we incurred $36,000 and $103,000 of expense, respectively, in connection with these agreements, which is included as a component of “transaction related costs” on our consolidated statements of income. Mannheim Trust Dr. Martin Bussmann (a member of our Board of Directors) is also a trustee and a director of Mannheim Trust, a subsidiary of which leases office space at 712 Fifth Avenue, our 50.0% owned unconsolidated joint venture. The Mannheim Trust is for the benefit of Dr. Bussmann’s children. Prior to December 5, 2016, the Mannheim Trust leased 6,790 square feet. On December 5, 2016, the joint venture entered into a new lease agreement for 5,593 square feet, which became effective in January 2017. The new lease expires in April 2023. For the three months ended March 31, 2017 and 2016, we recognized $94,000 and $102,000, respectively, for our share of rental income from this lease. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20. 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 such as floods, earthquakes and windstorms. 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 consultation with our insurance advisors, we believe 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, in connection with our initial public offering, may result in defense costs, settlements, fines or judgments against us, some of which are not, or cannot be, covered by insurance. Payment of any such costs, settlements, fines or judgments that are not insured could have an adverse impact on our financial position and results of operations. Should any litigation arise in connection with the formation transactions, we would contest it vigorously. In addition, certain litigation or the resolution of certain litigation may affect the availability or cost of some of our insurance coverage, which could adversely impact our results of operations and cash flow, expose us to increased risks that would be uninsured, and/or adversely impact our ability to attract officers and directors. The terms of our mortgage debt and certain side letters in place include certain restrictions and covenants which may limit, among other things, certain investments, the incurrence of additional indebtedness and liens and the disposition or other transfer of assets and interests in the borrower and other credit parties, and require compliance with certain debt yield, debt service coverage and loan to value ratios. In addition, our revolving credit facility contains representations, warranties, covenants, other agreements and events of default customary for agreements of this type with comparable companies. As of March 31, 2017, 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 September 10, 2018 with 12 months written notice and the actual purchase occurring no earlier than 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 | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segments Disclosure | 21. Segments Disclosure Our reportable segments are separated by region based on the three regions in which we conduct our business: New York, Washington, D.C. and San Francisco. Our determination of segments is aligned with our method of internal reporting and the way our Chief Executive Officer, who is also our Chief Operating Decision Maker, makes key operating decisions, evaluates financial results and manages our business. The following tables provide NOI for each reportable segment for the three months ended March 31, 2017 and 2016. For the Three Months Ended March 31, 2017 (Amounts in thousands) Total New York Washington, D.C. San Francisco Other Property-related revenues $ 171,680 $ 105,324 $ 23,787 $ 41,939 $ 630 Property-related operating expenses (65,971 ) (44,759 ) (8,924 ) (10,605 ) (1,683 ) NOI from unconsolidated joint ventures 4,823 4,753 - - 70 NOI (1) $ 110,532 $ 65,318 $ 14,863 $ 31,334 $ (983 ) For the Three Months Ended March 31, 2016 (Amounts in thousands) Total New York Washington, D.C. San Francisco Other Property-related revenues $ 169,501 $ 119,303 $ 19,982 $ 29,619 $ 597 Property-related operating expenses (62,945 ) (44,137 ) (8,275 ) (7,173 ) (3,360 ) NOI from unconsolidated joint ventures 4,428 4,347 - - 81 NOI (1) $ 110,984 $ 79,513 $ 11,707 $ 22,446 $ (2,682 ) (1) Net Operating Income (“NOI”) is used to measure the operating performance of our properties. NOI consists of property-related revenue (which includes rental income, tenant reimbursement income and certain other income) less operating expenses (which includes building expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI, and accordingly, our presentation of NOI may not be comparable to other real estate companies. The following table provides a reconciliation of NOI to net income (loss) attributable to common stockholders for the three months ended March 31, 2017 and 2016. For the Three Months Ended March 31, (Amounts in thousands) 2017 2016 NOI $ 110,532 $ 110,984 Add (subtract) adjustments to arrive to net income (loss): Fee income 9,556 3,417 Depreciation and amortization expense (62,992 ) (74,812 ) General and administrative expenses (13,581 ) (13,961 ) Transaction related costs (275 ) (935 ) NOI from unconsolidated joint ventures (4,823 ) (4,428 ) Income from unconsolidated joint ventures 1,937 1,496 Income (loss) from unconsolidated real estate funds 288 (326 ) Interest and other income, net 3,200 1,700 Interest and debt expense (39,733 ) (37,119 ) Unrealized gain on interest rate swaps 1,802 6,860 Net income (loss) before income taxes 5,911 (7,124 ) Income tax expense (4,282 ) (363 ) Net income (loss) 1,629 (7,487 ) Less: net (income) loss attributable to noncontrolling interests in: Consolidated real estate fund 88 674 Consolidated joint ventures (1,291 ) (1,252 ) Operating Partnership (54 ) 1,571 Net income (loss) attributable to common stockholders $ 372 $ (6,494 ) The following table provides the selected balance sheet data for each of our reportable segments as of March 31, 2017. (Amounts in thousands) As of March 31, 2017 Balance Sheet Data: Total New York Washington, D.C. San Francisco Other Total assets $ 8,885,514 $ 5,589,690 $ 1,068,604 $ 1,926,290 $ 300,930 Total liabilities 4,040,156 2,449,369 214,273 1,050,151 326,363 Total equity 4,845,358 3,140,321 854,331 876,139 (25,433 ) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events On May 3, 2017, we completed the sale of Waterview for $460,000,000 and realized net proceeds of approximately $457,000,000. The sale resulted in a net gain of approximately $110,000,000, which will be recognized in the second quarter of 2017. On May 4, 2017, we used the net proceeds from the Waterview sale to repay the $200,000,000 outstanding under our revolving credit facility, the $87,179,000 loan on 1899 Pennsylvania Avenue, and the $84,000,000 loan on Liberty Place. |
Basis of Presentation and Sig31
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated 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, results of operations and changes in 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 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 financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three months ended March 31, 2017, are not necessarily indicative of the operating results for the full year. |
Significant Accounting Policies | Significant Accounting Policies There are no material changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016. |
Recently Issued Accounting Literature | Recently Issued Accounting Literature In May 2014, the Financial Accounting Standard’s Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, an update to ASC Topic 606, Revenue from Contracts with Customers In February 2016, the FASB issued ASU 2016-02, an update to ASC Topic 842, Leases. In March 2016, the FASB issued ASU 2016-09, an update to ASC Topic 718, Compensation – Stock Compensation. In June 2016, the FASB issued ASU 2016-13, an update to ASC Topic 326 , Financial Instruments – Credit Losses. In August 2016, the FASB issued ASU 2016-15, an update to ASC Topic 230, Statement of Cash Flows In October 2016, the FASB issued ASU 2016-17, an update to ASC Topic 810, Consolidation a reporting entity to consider only its proportionate indirect interest in the VIE held through a common control party in evaluating whether it is the primary beneficiary of a VIE. Currently, ASU 2015-02 requires the reporting entity to treat the common control party’s interest in the VIE as if the reporting entity held the interest itself. In November 2016, the FASB issued ASU 2016-18, an update to ASC Topic 230, Statement of Cash Flows classification and presentation of changes in restricted cash on the statement of cash flows entity’s reconciliation of the beginning-of-period and end-of-period total amounts shown on the statement of cash flows to include restricted cash with cash and cash equivalents. In January 2017, the FASB issued ASU 2017-01, an update to ASC Topic 805, Business Combinations. In February 2017, the FASB issued ASU 2017-05, an update to ASC Topic 610, Other Income. |
Dispositions (Tables)
Dispositions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Assets Of Disposal Group Including Discontinued Operation [Abstract] | |
Summary of Assets Classified as Held For Sale | The following table provides the details of the assets classified as held for sale. (Amounts in thousands) As of March 31, 2017 As of December 31, 2016 Land $ 78,300 $ 78,300 Building and improvements, net 251,671 251,671 Deferred charges 14,512 14,512 Deferred rent receivable 2,202 2,202 Assets held for sale $ 346,685 $ 346,685 |
Investments in Unconsolidated33
Investments in Unconsolidated Joint Ventures (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Schedule Of Equity Method Investments [Line Items] | |
Summary of Investments and Income from Investments In Unconsolidated Joint Ventures | The following tables summarize our investments in unconsolidated joint ventures as of March 31, 2017 and December 31, 2016 and income from these investments for the three months ended March 31, 2017 and 2016. (Amounts in thousands) Paramount As of Our Share of Investments: Ownership March 31, 2017 December 31, 2016 712 Fifth Avenue 50.0% $ 4,842 $ 2,912 60 Wall Street (1) 5.2% 27,852 - Oder-Center, Germany (2) 9.5% 3,265 3,499 Investments in unconsolidated joint ventures $ 35,959 $ 6,411 (Amounts in thousands) Paramount For the Three Months Ended March 31, Our Share of Net Income (Loss): Ownership 2017 2016 712 Fifth Avenue 50.0% $ 1,930 $ 1,476 60 Wall Street (1) 5.2% (5 ) - Oder-Center, Germany (2) 9.5% 12 20 Income from unconsolidated joint ventures $ 1,937 $ 1,496 (1) Represents our share of earnings from the date of acquisition through March 31, 2017. (2) We account for our interest in Oder-Center, Germany on a one-quarter lag basis. |
712 Fifth Avenue [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Summary of Investments in Unconsolidated Joint Ventures | As of March 31, 2017, we own a 50% interest in a joint venture that owns 712 Fifth Avenue, which is accounted for under the equity method. The following tables provide summarized financial information of 712 Fifth Avenue as of the dates and for the periods set forth below. (Amounts in thousands) As of Balance Sheets: March 31, 2017 December 31, 2016 Rental property, net $ 206,700 $ 207,632 Other assets 46,173 40,701 Total assets $ 252,873 $ 248,333 Notes and mortgages payable, net $ 246,092 $ 245,990 Other liabilities 9,361 8,783 Total liabilities 255,453 254,773 Equity (1) (2,580 ) (6,440 ) Total liabilities and equity $ 252,873 $ 248,333 (1) The carrying amount of our investment is greater than our share of the equity by approximately $6,130. This basis difference resulted from distributions in excess of the equity in net earnings of 712 Fifth Avenue. (Amounts in thousands) For the Three Months Ended March 31, Income Statements: 2017 2016 Rental income $ 12,945 $ 12,678 Tenant reimbursement income 1,308 1,116 Fee and other income 126 518 Total revenues 14,379 14,312 Operating expenses 5,966 5,617 Depreciation and amortization 2,920 3,008 Total expenses 8,886 8,625 Operating income 5,493 5,687 Interest and other income, net 24 14 Interest and debt expense (2,825 ) (2,748 ) Unrealized gain on interest rate swaps 1,168 - Net income $ 3,860 $ 2,953 |
Real Estate Fund Investments (T
Real Estate Fund Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Real Estate Investments [Abstract] | |
Summary of Investment in Unconsolidated Real Estate Funds and Income or Loss from Fund Investments | The following tables summarize our investments in these unconsolidated real estate funds as of March 31, 2017 and December 31, 2016, and income or loss recognized from these investments for the three months ended March 31, 2017 and 2016. As of (Amounts in thousands) March 31, 2017 December 31, 2016 Our Share of Investments: Property funds $ 19,250 $ 22,811 Alternative investment fund 4,663 5,362 Investments in unconsolidated real estate funds $ 23,913 $ 28,173 For the Three Months Ended March 31, 2017 Alternative (Amounts in thousands) Total Property Funds Investment Fund Our Share of Net Income: Net investment income (loss) $ 53 $ (7 ) $ 60 Net realized gains 179 179 - Net unrealized income 96 78 18 Carried interest (40 ) (40 ) - Income from unconsolidated real estate funds (1) $ 288 $ 210 $ 78 For the Three Months Ended March 31, 2016 Alternative (Amounts in thousands) Total Property Funds Investment Fund Our Share of Net (Loss) Income: Net investment (loss) income $ (539 ) $ (569 ) $ 30 Net unrealized income (loss) 229 240 (11 ) Carried interest (16 ) (16 ) - (Loss) income from unconsolidated real estate funds (1) $ (326 ) $ (345 ) $ 19 (1) Excludes asset management and other fee income from real estate funds, which is included as a component of “fee and other income” in our consolidated statements of income. |
Schedule of Financial Information for Fund Investment | The following tables provide summarized financial information for Fund II, Fund III and Fund VII as of the dates and for the periods set forth below. (Amounts in thousands) As of March 31, 2017 As of December 31, 2016 Balance Sheets: Fund II Fund III Fund VII Fund II Fund III Fund VII Real estate investments $ 11,134 $ 19,697 $ 165,690 $ 64,989 $ 39,376 $ 165,556 Cash and cash equivalents 931 2,185 878 1,297 2,221 741 Other assets 115 - - 127 - - Total assets $ 12,180 $ 21,882 $ 166,568 $ 66,413 $ 41,597 $ 166,297 Other liabilities $ 58 $ 53 $ 1,967 $ 60 $ 49 $ 1,483 Total liabilities 58 53 1,967 60 49 1,483 Equity 12,122 21,829 164,601 66,353 41,548 164,814 Total liabilities and equity $ 12,180 $ 21,882 $ 166,568 $ 66,413 $ 41,597 $ 166,297 For the Three Months Ended March 31, (Amounts in thousands) 2017 2016 Income Statements: Fund II Fund III Fund VII Fund II Fund III Fund VII Investment income $ - $ 1,140 $ 185 $ - $ - $ - Investment expenses 196 10 476 687 52 530 Net investment (loss) income (196 ) 1,130 (291 ) (687 ) (52 ) (530 ) Net realized losses (15,201 ) (5,253 ) - - - - Net unrealized (losses) gains (4,997 ) (2,989 ) 134 1,425 625 1,106 (Loss) income from real estate fund investments $ (20,394 ) $ (7,112 ) $ (157 ) $ 738 $ 573 $ 576 |
Preferred Equity Investments (T
Preferred Equity Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Schedule Of Investments [Abstract] | |
Schedule of Preferred Equity Investments | The following is a summary of the preferred equity investments. (Amounts in thousands, except square feet) Paramount Dividend Initial As of Preferred Equity Investment Ownership Rate Maturity March 31, 2017 December 31, 2016 470 Vanderbilt Avenue (1) 24.4% 10.3% Feb-2019 $ 35,662 $ 35,613 2 Herald Square (2) 24.4% 10.3% Apr-2017 19,632 19,438 Total preferred equity investments $ 55,294 $ 55,051 (1) Represents a $33,750 preferred equity investment in a partnership that owns 470 Vanderbilt Avenue, a 650,000 square foot office building in Brooklyn, New York. The preferred equity has a dividend rate of 10.3%, of which 8.0% was paid in cash through February 2016 and the unpaid portion accreted to the balance of the investment. Subsequent to February 2016, the entire 10.3% dividend is being paid in cash. (2) Represents a $17,500 preferred equity investment in a partnership that owns 2 Herald Square, a 369,000 square foot office retail property in Manhattan. The preferred equity has a dividend rate of 10.3%, of which 7.0% is paid currently and the remainder accretes to the balance of the investment. The preferred equity investment has two one-year extension options. On April 11, 2017, the partnership that owns 2 Herald Square failed to extend the maturity date or redeem the preferred equity investment, together with accrued and unpaid dividends and we are currently in active negotiation with the borrower to resolve the matter. |
Intangible Assets and Liabili36
Intangible Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Intangible Assets and Liabilities | The following summarizes our intangible assets (acquired above-market leases and acquired in-place leases) and intangible liabilities (acquired below-market leases) as of March 31, 2017 and December 31, 2016. As of (Amounts in thousands) March 31, 2017 December 31, 2016 Intangible assets: Gross amount $ 560,809 $ 579,066 Accumulated amortization (171,221 ) (166,841 ) $ 389,588 $ 412,225 Intangible liabilities: Gross amount $ 203,674 $ 208,367 Accumulated amortization (58,536 ) (55,349 ) $ 145,138 $ 153,018 |
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, 2018 is as follows. (Amounts in thousands) 2018 $ 14,220 2019 12,010 2020 9,625 2021 4,546 2022 1,181 |
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, 2018 is as follows. (Amounts in thousands) 2018 $ 54,581 2019 48,184 2020 41,073 2021 28,268 2022 23,654 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following is a summary of our outstanding debt. Maturity Fixed/ Interest Rate as of As of (Amounts in thousands) Date Variable Rate March 31, 2017 March 31, 2017 December 31, 2016 Notes and mortgages payable 1633 Broadway Dec-2022 Fixed (1) 3.54 % $ 1,000,000 $ 1,000,000 Dec-2022 L + 175 bps 2.73 % 30,100 (2) 13,544 (2) 3.52 % 1,030,100 1,013,544 One Market Plaza (49.0% interest) Feb-2024 Fixed 4.03 % 975,000 860,546 n/a n/a n/a - 12,414 4.03 % 975,000 872,960 1301 Avenue of the Americas Nov-2021 Fixed 3.05 % 500,000 500,000 Nov-2021 L + 180 bps 2.61 % 350,000 350,000 2.87 % 850,000 850,000 31 West 52nd Street May-2026 Fixed 3.80 % 500,000 500,000 1899 Pennsylvania Avenue Nov-2020 Fixed 4.88 % 87,179 (3) 87,675 Liberty Place June-2018 Fixed 4.50 % 84,000 (3) 84,000 Total notes and mortgages payable 3.60 % 3,526,279 3,408,179 Less: deferred financing costs (48,481 ) (43,281 ) Total notes and mortgages payable, net $ 3,477,798 $ 3,364,898 Revolving Credit Facility Nov-2018 L + 125 bps 2.23 % $ 200,000 (3) $ 230,000 (1) Represents loan with variable interest rates that has been fixed by interest rate swaps. See Note 9, Derivative Instruments and Hedging Activities (2) Represents amounts outstanding under an option to increase the loan balance up to $250,000, at LIBOR plus 175 basis points, if certain performance hurdles relating to the property are satisfied. (3) Repaid on May 4, 2017. See Note 22, Subsequent Events |
Derivative Instruments and He38
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 designated as cash flow hedges. Notional Strike Fair Value as of Property Amount Effective Date Maturity Date Rate March 31, 2017 December 31, 2016 (Amounts in thousands) 1633 Broadway $ 1,000,000 Dec-2015 Dec-2020 to Dec-2022 1.79 % $ 2,890 $ - 1633 Broadway 400,000 Dec-2020 Dec-2021 2.35 % 62 139 Total interest rate swap assets designated as cash flow hedges (included in "other assets") $ 2,952 $ 139 1633 Broadway $ 1,000,000 Dec-2015 Dec-2020 to Dec-2022 1.79 % $ - $ 1,219 Total interest rate swap liabilities designated as cash flow hedges $ - $ 1,219 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income by Component | The following table sets forth changes in accumulated other comprehensive income, by component for the three months ended March 31, 2017 and 2016. For the Three Months Ended March 31, (Amounts in thousands) 2017 2016 Amount of income (loss) related to the effective portion of cash flow hedges recognized in other comprehensive loss (1) $ 1,306 $ (26,839 ) Amounts reclassified from accumulated other comprehensive income into interest expense (1) 2,212 2,781 Amount of (loss) income related to unconsolidated joint ventures recognized in other comprehensive loss (1) (2) (194 ) 86 Amount of gain (loss) related to the ineffective portion of cash flow hedges and amount excluded from effectiveness testing - - (1) (2) |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Consolidated VIEs [Member] | |
Summary of Assets and Liabilities of Consolidated Variable Interest Entities | The table below summarizes the assets and liabilities of consolidated VIEs of the Operating Partnership As of (Amounts in thousands) March 31, 2017 December 31, 2016 Rental property, net $ 1,331,814 $ 1,336,810 Cash and restricted cash 61,047 17,054 Preferred equity investments 55,294 55,051 Accounts and other receivables 584 5,966 Deferred rent receivable 37,339 32,103 Deferred charges, net 6,044 695 Intangible assets, net 48,922 52,139 Other assets 419 14,474 Total VIE assets $ 1,541,463 $ 1,514,292 Notes and mortgages payable, net $ 967,833 $ 872,960 Accounts payable and other accrued expenses 19,292 21,077 Intangible liabilities, net 45,650 48,654 Interest rate swap liabilities - 21,227 Other liabilities 11,127 6,555 Total VIE liabilities $ 1,043,902 $ 970,473 |
Unconsolidated VIEs [Member] | |
Summary of Investments in Unconsolidated Real Estate Funds | As of March 31, 2017, the Operating Partnership held variable interests in entities that own certain real estate funds that were deemed to be VIEs. The table below summarizes our investments in these unconsolidated real estate funds. As of March 31, 2017 Asset Management Fees Maximum (Amounts in thousands) Investments and other Receivables Risk of Loss Unconsolidated real estate funds $ 23,913 $ 2,015 $ 25,928 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
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 as of March 31, 2017 and December 31, 2016, based on their levels in the fair value hierarchy. As of March 31, 2017 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 25,617 $ 25,617 $ - $ - Interest rate swap assets (included in "other assets") 2,952 - 2,952 - Total assets $ 28,569 $ 25,617 $ 2,952 $ - As of December 31, 2016 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 22,393 $ 22,393 $ - $ - Interest rate swap assets (included in "other assets") 139 - 139 - Total assets $ 22,532 $ 22,393 $ 139 $ - Interest rate swap liabilities $ 22,446 $ - $ 22,446 $ - Total liabilities $ 22,446 $ - $ 22,446 $ - |
Summary of Carrying Amounts and Fair Value of Financial Instruments | The following is a summary of the carrying amounts and fair value of these financial instruments as of March 31, 2017 and December 31, 2016. As of March 31, 2017 As of December 31, 2016 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Preferred equity investments $ 55,294 $ 55,573 $ 55,051 $ 55,300 Total assets $ 55,294 $ 55,573 $ 55,051 $ 55,300 As of March 31, 2017 As of December 31, 2016 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Notes and mortgages payable $ 3,526,279 $ 3,511,376 $ 3,408,179 $ 3,371,262 Revolving credit facility 200,000 200,018 230,000 230,018 Total liabilities $ 3,726,279 $ 3,711,394 $ 3,638,179 $ 3,601,280 |
Fee and Other Income (Tables)
Fee and Other Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fee And Other Income [Abstract] | |
Schedule of Fee and Other Income | The following table sets forth the details of our fee and other income. For the Three Months Ended March 31, (Amounts in thousands) 2017 2016 Fee income Property management $ 1,610 $ 1,521 Asset management 2,266 1,714 Acquisition and disposition 5,320 - Other 360 182 Total fee income 9,556 3,417 Lease termination income 66 10,955 (1) Other income (2) 3,372 6,505 Total fee and other income $ 12,994 $ 20,877 (1) Includes $10,861 from the termination of a lease with a tenant at 1633 Broadway. (2) Primarily comprised of income from tenant requested services, including overtime heating and cooling. |
Interest and Other Income, net
Interest and Other Income, net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Interest And Other Income [Abstract] | |
Schedule Of Interest And Other Income, net | The following table sets forth the details of interest and other income. For the Three Months Ended March 31, (Amounts in thousands) 2017 2016 Preferred equity investment income (1) $ 1,413 $ 1,416 Interest and other income 85 80 Mark-to-market of investments in our deferred compensation plans (2) 1,702 204 Total interest and other income, net $ 3,200 $ 1,700 (1) Represents income from our preferred equity investments in PGRESS Equity Holdings L.P., of which our 24.4% share is $344 and $345 for the three months ended March 31, 2017 and 2016, respectively. See Note 6, Preferred Equity Investments (2) 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) | 3 Months Ended |
Mar. 31, 2017 | |
Interest And Debt Expense [Abstract] | |
Details of Interest and Debt Expense | The following table sets forth the details of interest and debt expense. For the Three Months Ended March 31, (Amounts in thousands) 2017 2016 Interest expense $ 34,288 $ 35,861 Debt breakage costs 2,715 - Amortization of deferred financing costs 2,730 1,258 Total interest and debt expense $ 39,733 $ 37,119 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 and diluted income (loss) per common share, which includes the weighted average number of common shares outstanding and the effect of dilutive potential common shares, if any. For the Three Months Ended March 31, (Amounts in thousands, except per share amounts) 2017 2016 Numerator: Net income (loss) attributable to common stockholders $ 372 $ (6,494 ) Earnings allocated to unvested participating securities (14 ) (9 ) Numerator for income (loss) per common share - basic and diluted $ 358 $ (6,503 ) Denominator: Denominator for basic income (loss) per common share - weighted average shares 230,924 212,404 Effect of dilutive employee stock options and restricted share awards (1) 34 - Denominator for diluted income (loss) per common share - weighted average shares 230,958 212,404 Income (loss) per common share - basic and diluted $ 0.00 $ (0.03 ) (1) The effect of dilutive securities for the three months ended March 31, 2017 and 2016 excludes 35,998 and 52,592 weighted average share equivalents, respectively. |
Segments Disclosure (Tables)
Segments Disclosure (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of NOI for Each Reportable Segment Information | The following tables provide NOI for each reportable segment for the three months ended March 31, 2017 and 2016. For the Three Months Ended March 31, 2017 (Amounts in thousands) Total New York Washington, D.C. San Francisco Other Property-related revenues $ 171,680 $ 105,324 $ 23,787 $ 41,939 $ 630 Property-related operating expenses (65,971 ) (44,759 ) (8,924 ) (10,605 ) (1,683 ) NOI from unconsolidated joint ventures 4,823 4,753 - - 70 NOI (1) $ 110,532 $ 65,318 $ 14,863 $ 31,334 $ (983 ) For the Three Months Ended March 31, 2016 (Amounts in thousands) Total New York Washington, D.C. San Francisco Other Property-related revenues $ 169,501 $ 119,303 $ 19,982 $ 29,619 $ 597 Property-related operating expenses (62,945 ) (44,137 ) (8,275 ) (7,173 ) (3,360 ) NOI from unconsolidated joint ventures 4,428 4,347 - - 81 NOI (1) $ 110,984 $ 79,513 $ 11,707 $ 22,446 $ (2,682 ) (1) Net Operating Income (“NOI”) is used to measure the operating performance of our properties. NOI consists of property-related revenue (which includes rental income, tenant reimbursement income and certain other income) less operating expenses (which includes building expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI, and accordingly, our presentation of NOI may not be comparable to other real estate companies. |
Schedule of Reconciliation of NOI to Net Income (Loss) Attributable to Common Stockholders | The following table provides a reconciliation of NOI to net income (loss) attributable to common stockholders for the three months ended March 31, 2017 and 2016. For the Three Months Ended March 31, (Amounts in thousands) 2017 2016 NOI $ 110,532 $ 110,984 Add (subtract) adjustments to arrive to net income (loss): Fee income 9,556 3,417 Depreciation and amortization expense (62,992 ) (74,812 ) General and administrative expenses (13,581 ) (13,961 ) Transaction related costs (275 ) (935 ) NOI from unconsolidated joint ventures (4,823 ) (4,428 ) Income from unconsolidated joint ventures 1,937 1,496 Income (loss) from unconsolidated real estate funds 288 (326 ) Interest and other income, net 3,200 1,700 Interest and debt expense (39,733 ) (37,119 ) Unrealized gain on interest rate swaps 1,802 6,860 Net income (loss) before income taxes 5,911 (7,124 ) Income tax expense (4,282 ) (363 ) Net income (loss) 1,629 (7,487 ) Less: net (income) loss attributable to noncontrolling interests in: Consolidated real estate fund 88 674 Consolidated joint ventures (1,291 ) (1,252 ) Operating Partnership (54 ) 1,571 Net income (loss) attributable to common stockholders $ 372 $ (6,494 ) |
Schedule of Selected Balance Sheet Data for Each Reportable Segments Information | The following table provides the selected balance sheet data for each of our reportable segments as of March 31, 2017. (Amounts in thousands) As of March 31, 2017 Balance Sheet Data: Total New York Washington, D.C. San Francisco Other Total assets $ 8,885,514 $ 5,589,690 $ 1,068,604 $ 1,926,290 $ 300,930 Total liabilities 4,040,156 2,449,369 214,273 1,050,151 326,363 Total equity 4,845,358 3,140,321 854,331 876,139 (25,433 ) |
Organization and Business - Add
Organization and Business - Additional Information (Details) ft² in Millions | 3 Months Ended |
Mar. 31, 2017ft²Properties | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of office properties | Properties | 14 |
Area of office and retail properties | ft² | 12.5 |
Percentage of ownership in operating partnership | 87.30% |
Dispositions - Additional Infor
Dispositions - Additional Information (Details) | May 03, 2017USD ($) | Mar. 31, 2017ft² | Jan. 12, 2017USD ($)ft² |
Long Lived Assets Held For Sale [Line Items] | |||
Area of office and retail properties | ft² | 12,500,000 | ||
Waterview [Member] | |||
Long Lived Assets Held For Sale [Line Items] | |||
Area of office and retail properties | ft² | 636,768 | ||
Sale agreement amount | $ 460,000,000 | ||
Waterview [Member] | Subsequent Event [Member] | |||
Long Lived Assets Held For Sale [Line Items] | |||
Sale agreement amount | $ 460,000,000 | ||
Net proceeds from sale of property | 457,000,000 | ||
Gain on sale of property | $ 110,000,000 |
Dispositions - Summary of Asset
Dispositions - Summary of Assets Classified as Held for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Long Lived Assets Held For Sale [Line Items] | ||
Assets held for sale | $ 346,685 | $ 346,685 |
Waterview [Member] | ||
Long Lived Assets Held For Sale [Line Items] | ||
Land | 78,300 | 78,300 |
Building and improvements, net | 251,671 | 251,671 |
Deferred charges | 14,512 | 14,512 |
Deferred rent receivable | 2,202 | 2,202 |
Assets held for sale | $ 346,685 | $ 346,685 |
Investments in Unconsolidated50
Investments in Unconsolidated Joint Ventures - Additional Information (Details) ft² in Millions | Jan. 24, 2017USD ($)ft² | Mar. 31, 2017ft² | Dec. 31, 2016ft² |
Schedule Of Equity Method Investments [Line Items] | |||
Area of office and retail properties | ft² | 12.5 | ||
712 Fifth Avenue [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 50.00% | 50.00% | |
60 Wall Street [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Property ownership, percentage | 5.20% | ||
Area of office and retail properties | ft² | 1.6 | 1.6 | |
Acquisition amount | $ | $ 1,040,000,000 | ||
Mortgage financing amount | $ | $ 575,000,000 | ||
Equity method ownership percentage | 5.20% | 5.20% |
Investments in Unconsolidated51
Investments in Unconsolidated Joint Ventures - Summary of Investments and Income from Investments In Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Schedule Of Equity Method Investments [Line Items] | |||
Investments in unconsolidated joint ventures | $ 35,959 | $ 6,411 | |
Income from unconsolidated joint ventures | $ 1,937 | $ 1,496 | |
712 Fifth Avenue [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method paramount ownership percentage | 50.00% | 50.00% | |
Investments in unconsolidated joint ventures | $ 4,842 | $ 2,912 | |
Income from unconsolidated joint ventures | $ 1,930 | 1,476 | |
Oder-Center, Germany [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method paramount ownership percentage | 9.50% | 9.50% | |
Investments in unconsolidated joint ventures | $ 3,265 | $ 3,499 | |
Income from unconsolidated joint ventures | $ 12 | $ 20 | |
60 Wall Street [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method paramount ownership percentage | 5.20% | 5.20% | |
Investments in unconsolidated joint ventures | $ 27,852 | ||
Income from unconsolidated joint ventures | $ (5) |
Investments in Unconsolidated52
Investments in Unconsolidated Joint Ventures - Summary of Financial Information (Details) - 712 Fifth Avenue [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Schedule Of Equity Method Investments [Line Items] | |||
Rental property, net | $ 206,700 | $ 207,632 | |
Other assets | 46,173 | 40,701 | |
Total assets | 252,873 | 248,333 | |
Notes and mortgages payable, net | 246,092 | 245,990 | |
Other liabilities | 9,361 | 8,783 | |
Total liabilities | 255,453 | 254,773 | |
Equity | (2,580) | (6,440) | |
Total liabilities and equity | 252,873 | $ 248,333 | |
Rental income | 12,945 | $ 12,678 | |
Tenant reimbursement income | 1,308 | 1,116 | |
Fee and other income | 126 | 518 | |
Total revenues | 14,379 | 14,312 | |
Operating expenses | 5,966 | 5,617 | |
Depreciation and amortization | 2,920 | 3,008 | |
Total expenses | 8,886 | 8,625 | |
Operating income | 5,493 | 5,687 | |
Interest and other income, net | 24 | 14 | |
Interest and debt expense | (2,825) | (2,748) | |
Unrealized gain on interest rate swaps | 1,168 | ||
Net income | $ 3,860 | $ 2,953 |
Investments in Unconsolidated53
Investments in Unconsolidated Joint Ventures - Summary of Financial Information (Parenthetical) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
712 Fifth Avenue [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Difference between carrying amount of investment and equity | $ 6,130 |
Real Estate Fund Investments -
Real Estate Fund Investments - Additional Information (Details) - ft² ft² in Millions | Mar. 31, 2017 | Jan. 24, 2017 | Dec. 31, 2016 |
Investment Holdings [Line Items] | |||
Area of office and retail properties | 12.5 | ||
Property Fund II [Member] | |||
Investment Holdings [Line Items] | |||
Percentage interest in fund | 10.00% | ||
Property Fund III [Member] | |||
Investment Holdings [Line Items] | |||
Percentage interest in fund | 3.10% | ||
Property Fund VII [Member] | |||
Investment Holdings [Line Items] | |||
Percentage interest in fund | 7.50% | ||
60 Wall Street [Member] | |||
Investment Holdings [Line Items] | |||
Percentage interest in fund | 62.30% | ||
Percentage remaining interest sold | 37.70% | ||
Area of office and retail properties | 1.6 | 1.6 | |
Property ownership, percentage | 5.20% |
Real Estate Fund Investments 55
Real Estate Fund Investments - Summary of Investment in Unconsolidated Real Estate Funds and Income or Loss from Fund Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Our Share of Investments: | |||
Investments in unconsolidated real estate funds | $ 23,913 | $ 28,173 | |
Income (loss) from unconsolidated real estate funds | 288 | $ (326) | |
Net investment (loss) income [Member] | |||
Our Share of Investments: | |||
Income (loss) from unconsolidated real estate funds | 53 | (539) | |
Net realized gains [Member] | |||
Our Share of Investments: | |||
Income (loss) from unconsolidated real estate funds | 179 | ||
Net unrealized income (loss) [Member] | |||
Our Share of Investments: | |||
Income (loss) from unconsolidated real estate funds | 96 | 229 | |
Carried interest [Member] | |||
Our Share of Investments: | |||
Income (loss) from unconsolidated real estate funds | (40) | (16) | |
Property Funds [Member] | |||
Our Share of Investments: | |||
Investments in unconsolidated real estate funds | 19,250 | 22,811 | |
Income (loss) from unconsolidated real estate funds | 210 | (345) | |
Property Funds [Member] | Net investment (loss) income [Member] | |||
Our Share of Investments: | |||
Income (loss) from unconsolidated real estate funds | (7) | (569) | |
Property Funds [Member] | Net realized gains [Member] | |||
Our Share of Investments: | |||
Income (loss) from unconsolidated real estate funds | 179 | ||
Property Funds [Member] | Net unrealized income (loss) [Member] | |||
Our Share of Investments: | |||
Income (loss) from unconsolidated real estate funds | 78 | 240 | |
Property Funds [Member] | Carried interest [Member] | |||
Our Share of Investments: | |||
Income (loss) from unconsolidated real estate funds | (40) | (16) | |
Alternative Investment Fund [Member] | |||
Our Share of Investments: | |||
Investments in unconsolidated real estate funds | 4,663 | $ 5,362 | |
Income (loss) from unconsolidated real estate funds | 78 | 19 | |
Alternative Investment Fund [Member] | Net investment (loss) income [Member] | |||
Our Share of Investments: | |||
Income (loss) from unconsolidated real estate funds | 60 | 30 | |
Alternative Investment Fund [Member] | Net unrealized income (loss) [Member] | |||
Our Share of Investments: | |||
Income (loss) from unconsolidated real estate funds | $ 18 | $ (11) |
Real Estate Fund Investments 56
Real Estate Fund Investments - Schedule of Financial Information for Fund Investment (Details) - Unconsolidated Real Estate Funds [Member] - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property Fund II [Member] | ||
Investment Holdings [Line Items] | ||
Real estate investments | $ 11,134 | $ 64,989 |
Cash and cash equivalents | 931 | 1,297 |
Other assets | 115 | 127 |
Total assets | 12,180 | 66,413 |
Other liabilities | 58 | 60 |
Total liabilities | 58 | 60 |
Equity | 12,122 | 66,353 |
Total liabilities and equity | 12,180 | 66,413 |
Property Fund III [Member] | ||
Investment Holdings [Line Items] | ||
Real estate investments | 19,697 | 39,376 |
Cash and cash equivalents | 2,185 | 2,221 |
Total assets | 21,882 | 41,597 |
Other liabilities | 53 | 49 |
Total liabilities | 53 | 49 |
Equity | 21,829 | 41,548 |
Total liabilities and equity | 21,882 | 41,597 |
Property Fund VII [Member] | ||
Investment Holdings [Line Items] | ||
Real estate investments | 165,690 | 165,556 |
Cash and cash equivalents | 878 | 741 |
Total assets | 166,568 | 166,297 |
Other liabilities | 1,967 | 1,483 |
Total liabilities | 1,967 | 1,483 |
Equity | 164,601 | 164,814 |
Total liabilities and equity | $ 166,568 | $ 166,297 |
Real Estate Fund Investments 57
Real Estate Fund Investments - Schedule of Income from Fund Investment (Details) - Unconsolidated Real Estate Funds [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property Fund II [Member] | ||
Investment Holdings [Line Items] | ||
Investment expenses | $ 196 | $ 687 |
Net investment (loss) income | (196) | (687) |
Net realized losses | (15,201) | |
Net unrealized (losses) gains | (4,997) | 1,425 |
(Loss) income from real estate fund investments | (20,394) | 738 |
Property Fund III [Member] | ||
Investment Holdings [Line Items] | ||
Investment income | 1,140 | |
Investment expenses | 10 | 52 |
Net investment (loss) income | 1,130 | (52) |
Net realized losses | (5,253) | |
Net unrealized (losses) gains | (2,989) | 625 |
(Loss) income from real estate fund investments | (7,112) | 573 |
Property Fund VII [Member] | ||
Investment Holdings [Line Items] | ||
Investment income | 185 | |
Investment expenses | 476 | 530 |
Net investment (loss) income | (291) | (530) |
Net unrealized (losses) gains | 134 | 1,106 |
(Loss) income from real estate fund investments | $ (157) | $ 576 |
Preferred Equity Investments -
Preferred Equity Investments - Additional Information (Details) | Mar. 31, 2017 |
Schedule Of Investments [Abstract] | |
Preferred equity ownership percentage | 24.40% |
Preferred Equity Investments (D
Preferred Equity Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Investment Holdings [Line Items] | ||
Preferred equity ownership percentage | 24.40% | |
Preferred equity investments | $ 55,294 | $ 55,051 |
470 Vanderbilt Avenue [Member] | ||
Investment Holdings [Line Items] | ||
Preferred equity ownership percentage | 24.40% | |
Preferred Equity Investments, Dividend Rate | 10.30% | |
Preferred Equity Investments, Initial Maturity | 2019-02 | |
Preferred equity investments | $ 35,662 | 35,613 |
2 Herald Square [Member] | ||
Investment Holdings [Line Items] | ||
Preferred equity ownership percentage | 24.40% | |
Preferred Equity Investments, Dividend Rate | 10.30% | |
Preferred Equity Investments, Initial Maturity | 2017-04 | |
Preferred equity investments | $ 19,632 | $ 19,438 |
Preferred Equity Investments 60
Preferred Equity Investments - Parenthetical (Details) ft² in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)ft² | |
Schedule Of Investments [Line Items] | |
Area of office properties | 12,500 |
470 Vanderbilt Avenue [Member] | |
Schedule Of Investments [Line Items] | |
Preferred equity investments, partnership amount | $ | $ 33,750 |
Area of office properties | 650 |
Preferred Equity Investments, Dividend Rate | 10.30% |
Preferred equity investments, dividend rate percentage paid | 8.00% |
2 Herald Square [Member] | |
Schedule Of Investments [Line Items] | |
Preferred equity investments, partnership amount | $ | $ 17,500 |
Area of office properties | 369 |
Preferred Equity Investments, Dividend Rate | 10.30% |
Preferred equity investments, dividend rate percentage paid | 7.00% |
Intangible Assets and Intangibl
Intangible Assets and Intangible Liabilities - Summary of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Intangible assets: | ||
Gross amount | $ 560,809 | $ 579,066 |
Accumulated amortization | (171,221) | (166,841) |
Intangible assets, Net | 389,588 | 412,225 |
Intangible liabilities: | ||
Gross amount | 203,674 | 208,367 |
Accumulated amortization | (58,536) | (55,349) |
Intangible Liabilities, Net | $ 145,138 | $ 153,018 |
Intangible Assets and Liabili62
Intangible Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Leases, Acquired-in-Place, Market Adjustment [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Rental income increase (decrease) | $ 3,008 | $ (3,619) |
Income of tenant's below market lease asset | 3,915 | |
Write-off above market lease asset | 9,834 | |
Leases, Acquired-in-Place [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization of acquired in-place leases | $ 17,774 | $ 30,692 |
Intangible Assets and Intangi63
Intangible Assets and Intangible Liabilities - Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,018 | $ 14,220 |
2,019 | 12,010 |
2,020 | 9,625 |
2,021 | 4,546 |
2,022 | $ 1,181 |
Intangible Assets and Intangi64
Intangible Assets and Intangible Liabilities - Schedule of Estimated Annual Amortization of Acquired In-Place Leases (Details) - Leases, Acquired-in-Place [Member] $ in Thousands | Mar. 31, 2017USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2,018 | $ 54,581 |
2,019 | 48,184 |
2,020 | 41,073 |
2,021 | 28,268 |
2,022 | $ 23,654 |
Debt - Additional Information (
Debt - Additional Information (Details) ft² in Millions | Jan. 19, 2017USD ($)ft² | Mar. 31, 2017ft² |
Debt Instrument [Line Items] | ||
Area of office and retail properties | 12.5 | |
Notes and mortgages payable, interest rate | 3.60% | |
One Market Plaza [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage refinancing extended amount | $ | $ 975,000,000 | |
Area of office and retail properties | 1.6 | |
Debt instrument term of notes | 7 years | |
Notes and mortgages payable, interest rate | 4.03% | |
One Market Plaza [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2024-02 | 2024-02 |
Notes and mortgages payable, interest rate | 4.03% | 4.03% |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Details) - USD ($) $ in Thousands | Jan. 19, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Notes and mortgages payable, Interest Rate | 3.60% | ||
Notes and mortgages payable | $ 3,526,279 | $ 3,408,179 | |
Credit Facility | 200,000 | 230,000 | |
Less: deferred financing costs | (48,481) | (43,281) | |
Total notes and mortgages payable, net | $ 3,477,798 | 3,364,898 | |
Credit Facility With Variable Rate [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2018-11 | ||
Interest Rate | 2.23% | ||
Credit Facility | $ 200,000 | 230,000 | |
Credit Facility With Variable Rate [Member] | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Fixed/Variable Rate | 1.25% | ||
1633 Broadway [Member] | |||
Debt Instrument [Line Items] | |||
Notes and mortgages payable, Interest Rate | 3.52% | ||
Notes and mortgages payable | $ 1,030,100 | 1,013,544 | |
1633 Broadway [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2022-12 | ||
Notes and mortgages payable, Interest Rate | 3.54% | ||
Notes and mortgages payable | $ 1,000,000 | 1,000,000 | |
1633 Broadway [Member] | Mortgages and Notes Payable with Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2022-12 | ||
Notes and mortgages payable, Interest Rate | 2.73% | ||
Notes and mortgages payable | $ 30,100 | 13,544 | |
1633 Broadway [Member] | Mortgages and Notes Payable with Variable Rate [Member] | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Fixed/Variable Rate | 1.75% | ||
One Market Plaza [Member] | |||
Debt Instrument [Line Items] | |||
Notes and mortgages payable, Interest Rate | 4.03% | ||
Notes and mortgages payable | $ 975,000 | 872,960 | |
One Market Plaza [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2024-02 | 2024-02 | |
Notes and mortgages payable, Interest Rate | 4.03% | 4.03% | |
Notes and mortgages payable | $ 975,000 | 860,546 | |
One Market Plaza [Member] | Mortgages and Notes Payable with Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Notes and mortgages payable | 12,414 | ||
1301 Avenue of Americas [Member] | |||
Debt Instrument [Line Items] | |||
Notes and mortgages payable, Interest Rate | 2.87% | ||
Notes and mortgages payable | $ 850,000 | 850,000 | |
1301 Avenue of Americas [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2021-11 | ||
Notes and mortgages payable, Interest Rate | 3.05% | ||
Notes and mortgages payable | $ 500,000 | 500,000 | |
1301 Avenue of Americas [Member] | Mortgages and Notes Payable with Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2021-11 | ||
Notes and mortgages payable, Interest Rate | 2.61% | ||
Notes and mortgages payable | $ 350,000 | 350,000 | |
1301 Avenue of Americas [Member] | Mortgages and Notes Payable with Variable Rate [Member] | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Fixed/Variable Rate | 1.80% | ||
31 West 52nd Street [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2026-05 | ||
Notes and mortgages payable, Interest Rate | 3.80% | ||
Notes and mortgages payable | $ 500,000 | 500,000 | |
1899 Pennsylvania Avenue [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2020-11 | ||
Notes and mortgages payable, Interest Rate | 4.88% | ||
Notes and mortgages payable | $ 87,179 | 87,675 | |
Liberty Place [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date of debt | 2018-06 | ||
Notes and mortgages payable, Interest Rate | 4.50% | ||
Notes and mortgages payable | $ 84,000 | $ 84,000 |
Debt - Summary of Outstanding67
Debt - Summary of Outstanding Debt (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
1633 Broadway [Member] | Mortgages and Notes Payable with Variable Rate [Member] | |
Debt Instrument [Line Items] | |
Additional Borrowing Capacity Subject To Performance Hurdles | $ 250,000,000 |
Additional Borrowing Capacity Interest Rate Description | LIBOR plus 175 basis points |
1633 Broadway [Member] | Mortgages and Notes Payable with Variable Rate [Member] | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Fixed/Variable Rate | 1.75% |
One Market Plaza [Member] | |
Debt Instrument [Line Items] | |
Ownership interest rate of property | 49.00% |
Derivative Instruments and He68
Derivative Instruments and Hedging Activities - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2017USD ($)Derivative | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Derivative [Line Items] | |||
Fair value of derivative obligations to be settled | $ 0 | $ 22,446,000 | |
Change in value of interest rate swaps | $ 4,032,000 | $ (29,867,000) | |
Number of derivative instruments | Derivative | 0 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Fair value of derivative obligations to be settled | 1,219,000 | ||
Change in value of interest rate swaps | $ 4,032,000 | (29,867,000) | |
Estimated accumulated other comprehensive income (loss) reclassified to interest expense in the next twelve months | 5,558,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | 1633 Broadway [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Aggregate notional amount | 1,000,000,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap March Two Thousand Seventeen [Member] | 1633 Broadway [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Aggregate notional amount | 400,000,000 | ||
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative liability fair Value | $ 21,227,000 | ||
Unrealized gains on interest rate swaps | $ 1,802,000 | $ 6,860,000 |
Derivative Instruments and He69
Derivative Instruments and Hedging Activities - Summary of Outstanding Interest Rate Swaps (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Interest rate swap assets | $ 2,952,000 | $ 139,000 |
Interest rate swap liabilities | 0 | 22,446,000 |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Interest rate swap assets | 2,952,000 | 139,000 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Interest rate swap liabilities | 1,219,000 | |
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap March Two Thousand Seventeen [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Notional Amount, Assets | $ 1,000,000,000 | |
Effective Dates, Assets | 2015-12 | |
Strike Rate, Assets | 1.79% | |
Interest rate swap assets | $ 2,890,000 | |
Aggregate notional amount | $ 400,000,000 | |
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap March Two Thousand Seventeen [Member] | Cash Flow Hedges [Member] | Minimum | ||
Derivative [Line Items] | ||
Maturity Date, Assets | 2020-12 | |
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap March Two Thousand Seventeen [Member] | Cash Flow Hedges [Member] | Maximum | ||
Derivative [Line Items] | ||
Maturity Date, Assets | 2022-12 | |
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap December Two Thousand Sixteen [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Notional Amount, Assets | $ 400,000,000 | |
Effective Dates, Assets | 2020-12 | |
Maturity Date, Assets | 2021-12 | |
Strike Rate, Assets | 2.35% | |
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap November Two Thousand Fifteen [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Interest rate swap assets | $ 62,000 | 139,000 |
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap September Two Thousand Fifteen [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 1,000,000,000 | |
Effective Dates, Liabilities | 2015-12 | |
Strike Rate, Liabilities | 1.79% | |
Interest rate swap liabilities | $ 1,219,000 | |
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap September Two Thousand Fifteen [Member] | Cash Flow Hedges [Member] | Minimum | ||
Derivative [Line Items] | ||
Maturity Date, Liabilities | 2020-12 | |
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap September Two Thousand Fifteen [Member] | Cash Flow Hedges [Member] | Maximum | ||
Derivative [Line Items] | ||
Maturity Date, Liabilities | 2022-12 | |
Designated as Hedging Instrument [Member] | 1633 Broadway [Member] | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Aggregate notional amount | $ 1,000,000,000 |
Accumulated Other Comprehensi70
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Amount of income (loss) related to the effective portion of cash flow hedges recognized in other comprehensive loss | [1] | $ 1,306,000 | $ (26,839,000) |
Amounts reclassified from accumulated other comprehensive income into interest expense | [1] | 2,212,000 | 2,781,000 |
Unconsolidated Joint Ventures [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Amounts reclassified from accumulated other comprehensive income into interest expense | 0 | 0 | |
Amount of (loss) income related to unconsolidated joint ventures recognized in other comprehensive loss | [1],[2] | $ (194,000) | $ 86,000 |
[1] | Net of amount attributable to the noncontrolling interests in the Operating Partnership. | ||
[2] | Balance held in accumulated other comprehensive income (loss) relates to foreign currency translation adjustments. No amounts were reclassified from accumulated other comprehensive income (loss) during any of the periods set forth above. |
Accumulated Other Comprehensi71
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income by Component (Parenthetical) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | $ 2,212,000 | $ 2,781,000 |
Unconsolidated Joint Ventures [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 0 | $ 0 | |
[1] | Net of amount attributable to the noncontrolling interests in the Operating Partnership. |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Noncontrolling Interest [Abstract] | ||
Noncontrolling interest in consolidated real estate fund aggregated | $ 67,205 | $ 64,793 |
Consolidated joint ventures | 228,039 | 253,788 |
Operating partnerships | 556,099 | 577,361 |
Redemption value | $ 545,165 | $ 551,834 |
Common units conversion basis | one-for-one |
Variable Interest Entities ("73
Variable Interest Entities ("VIEs") - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Variable Interest Entities [Abstract] | |
Percentage of ownership in operating partnership | 87.30% |
Variable Interest Entities ("74
Variable Interest Entities ("VIEs") - Summary of Assets and Liabilities of Consolidated Variable Interest Entities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||
Rental property, net | $ 7,497,700 | $ 7,530,932 | |
Cash and restricted cash | 75,198 | 29,374 | |
Preferred equity investments | 55,294 | 55,051 | |
Accounts and other receivables | 12,564 | 15,251 | |
Deferred rent receivable | 184,571 | 163,695 | |
Deferred charges, net | 72,796 | 71,184 | |
Intangible assets, net | 389,588 | 412,225 | |
Other assets | 39,895 | 22,829 | |
Total assets | [1] | 8,885,514 | 8,867,168 |
Notes and mortgages payable, net | 3,526,279 | 3,408,179 | |
Accounts payable and other accrued expenses | 88,250 | 103,896 | |
Intangible liabilities, net | 145,138 | 153,018 | |
Interest rate swap liabilities | 0 | 22,446 | |
Other liabilities | 75,188 | 53,046 | |
Total liabilities | [1] | 4,040,156 | 3,981,221 |
Variable Interest Entities [Member] | |||
Variable Interest Entity [Line Items] | |||
Rental property, net | 1,331,814 | 1,336,810 | |
Cash and restricted cash | 61,047 | 17,054 | |
Preferred equity investments | 55,294 | 55,051 | |
Accounts and other receivables | 584 | 5,966 | |
Deferred rent receivable | 37,339 | 32,103 | |
Deferred charges, net | 6,044 | 695 | |
Intangible assets, net | 48,922 | 52,139 | |
Other assets | 419 | 14,474 | |
Total assets | 1,541,463 | 1,514,292 | |
Notes and mortgages payable, net | 967,833 | 872,960 | |
Accounts payable and other accrued expenses | 19,292 | 21,077 | |
Intangible liabilities, net | 45,650 | 48,654 | |
Interest rate swap liabilities | 21,227 | ||
Other liabilities | 11,127 | 6,555 | |
Total liabilities | $ 1,043,902 | $ 970,473 | |
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 87.3%. As of March 31, 2017, the assets and liabilities of the Operating Partnership include $1,541,463 and $1,043,902 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities. |
Variable Interest Entities ("75
Variable Interest Entities ("VIEs") - Summary of Investments in Unconsolidated Real Estate Funds (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | $ 23,913 | $ 28,173 |
Investment [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | 23,913 | |
Asset Management Fees and Other Receivables [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | 2,015 | |
Maximum Risk of Loss [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | $ 25,928 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Values of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 25,617 | $ 22,393 |
Interest rate swap assets (included in "other assets") | 2,952 | 139 |
Total assets | 28,569 | 22,532 |
Interest rate swap liabilities | 0 | 22,446 |
Total liabilities | 22,446 | |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 25,617 | 22,393 |
Total assets | 25,617 | 22,393 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swap assets (included in "other assets") | 2,952 | 139 |
Total assets | $ 2,952 | 139 |
Interest rate swap liabilities | 22,446 | |
Total liabilities | $ 22,446 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amounts and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total assets | $ 28,569 | $ 22,532 |
Total liabilities | 22,446 | |
Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Preferred equity investments | 55,294 | 55,051 |
Total assets | 55,294 | 55,051 |
Notes and mortgages payable | 3,526,279 | 3,408,179 |
Revolving credit facility | 200,000 | 230,000 |
Total liabilities | 3,726,279 | 3,638,179 |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Preferred equity investments | 55,573 | 55,300 |
Total assets | 55,573 | 55,300 |
Notes and mortgages payable | 3,511,376 | 3,371,262 |
Revolving credit facility | 200,018 | 230,018 |
Total liabilities | $ 3,711,394 | $ 3,601,280 |
Fee and Other Income - Schedule
Fee and Other Income - Schedule of Fee and Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fee income | ||
Property management fees | $ 1,610 | $ 1,521 |
Asset management fee income | 2,266 | 1,714 |
Acquisition and disposition | 5,320 | |
Other fees | 360 | 182 |
Total fee income | 9,556 | 3,417 |
Lease termination income | 66 | 10,955 |
Other income | 3,372 | 6,505 |
Total fee and other income | $ 12,994 | $ 20,877 |
Fee and Other Income - Schedu79
Fee and Other Income - Schedule of Fee and Other Income (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fee And Other Income [Line Items] | ||
Lease termination income | $ 66 | $ 10,955 |
1633 Broadway [Member] | ||
Fee And Other Income [Line Items] | ||
Lease termination income | $ 10,861 |
Interest and Other Income, ne80
Interest and Other Income, net - Schedule Of Interest And Other Income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest And Other Income [Abstract] | ||
Preferred equity investment income | $ 1,413 | $ 1,416 |
Interest and other income | 85 | 80 |
Mark-to-market of investments in our deferred compensation plans | 1,702 | 204 |
Total interest and other income, net | $ 3,200 | $ 1,700 |
Interest and Other Income, ne81
Interest and Other Income, net - Schedule Of Interest And Other Income, net (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Preferred equity investment income | $ 1,413 | $ 1,416 |
Preferred equity ownership percentage | 24.40% | |
PGRESS Equity Holdings L.P. [Member] | ||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Preferred equity investment income | $ 344 | $ 345 |
Preferred equity ownership percentage | 24.40% |
Interest and Debt Expense - Det
Interest and Debt Expense - Details of Interest and Debt Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest And Debt Expense [Abstract] | ||
Interest expense | $ 34,288 | $ 35,861 |
Debt breakage costs | 2,715 | |
Amortization of deferred financing costs | 2,730 | 1,258 |
Total interest and debt expense | $ 39,733 | $ 37,119 |
Incentive Compensation - Additi
Incentive Compensation - Additional Information (Details) - USD ($) | Jan. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3,429,000 | $ 3,627,000 | |
Acceleration of vesting stock awards | $ 1,855,000 | ||
Equity Incentive Plan [Member] | Full Value Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares available for grant | 10,348,396 | ||
2017 Performance Program [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance measurement period, term | 3 years | ||
Performance measurement period, start date | Jan. 1, 2017 | ||
Performance measurement period, end date | Dec. 31, 2019 | ||
Percentage of award earned based on performance of absolute shareholder return | 25.00% | ||
Percentage of award earned based on performance of relative shareholder return | 75.00% | ||
Fair value of awards granted | $ 10,520,000 | ||
Additional vesting period for executive officers | 1 year | ||
Vesting period | 4 years | ||
2017 Performance Program [Member] | Share-Based Compensation Award Tranche One [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of the awards that vest | 50.00% | ||
2017 Performance Program [Member] | Share-Based Compensation Award Tranche Two [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of the awards that vest | 50.00% | ||
2017 Performance Program [Member] | Minimum | At 30th Percentile [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total shareholder return for participants to start earning awards on absolute basis | 18.00% | ||
2017 Performance Program [Member] | Minimum | Exceeds 80th Percentile [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total shareholder return for participants to fully earn awards on absolute basis | 30.00% |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net income (loss) attributable to common stockholders | $ 372 | $ (6,494) |
Earnings allocated to unvested participating securities | (14) | (9) |
Numerator for income (loss) per common share - basic and diluted | $ 358 | $ (6,503) |
Denominator: | ||
Denominator for basic income (loss) per common share - weighted average shares | 230,924,271 | 212,403,593 |
Effect of dilutive employee stock options and restricted share awards | 34,000 | |
Denominator for diluted income (loss) per common share - weighted average shares | 230,958,441 | 212,403,593 |
Income (loss) per common share - basic and diluted | $ 0 | $ (0.03) |
Earnings Per Share - Summary 85
Earnings Per Share - Summary of Computation of Earnings Per Share (Parenthetical) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Effect of dilutive securities excluded from computation of earning per share | 35,998 | 52,592 |
Related Party - Additional Info
Related Party - Additional Information (Details) | 3 Months Ended | ||||
Mar. 31, 2017USD ($)ft² | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 05, 2016ft² | Dec. 04, 2016ft² | |
Related Party Transaction [Line Items] | |||||
Due to affiliates | $ 27,299,000 | $ 27,299,000 | |||
Interest Expense, Related Party | 34,000 | $ 34,000 | |||
Fee and other income | 12,994,000 | 20,877,000 | |||
Accounts and other receivables | 12,564,000 | $ 15,251,000 | |||
Transaction related costs | $ 275,000 | 935,000 | |||
Area of related party lease | ft² | 12,500,000 | ||||
712 Fifth Avenue [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity method ownership percentage | 50.00% | 50.00% | |||
Management Agreements [Member] | |||||
Related Party Transaction [Line Items] | |||||
Fee and other income | $ 202,000 | 208,000 | |||
Accounts and other receivables | 33,000 | ||||
CNBB-RDF Holdings, LP [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to affiliates | 24,500,000 | ||||
CNBB-RDF Holdings Otto Family [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to affiliates | 2,799,000 | ||||
Unconsolidated Joint Ventures and Real Estate Funds [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts and other receivables | 2,860,000 | ||||
Property management, asset management, leasing and other related services fee income | $ 8,406,000 | 2,240,000 | |||
Hamburg Trust Consulting GMBH (“HTC”) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Mark-up cost percentage | 10.00% | ||||
Transaction related costs | $ 36,000 | 103,000 | |||
Hamburg Trust Consulting GMBH (“HTC”) [Member] | Chairman, Chief Executive Officer and President [Member] | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership | 100.00% | ||||
Mannheim Trust [Member] | Board of Director [Member] | 712 Fifth Avenue [Member] | |||||
Related Party Transaction [Line Items] | |||||
Area of related party lease | ft² | 5,593 | 6,790 | |||
Equity method ownership percentage | 50.00% | ||||
Lease rental income | $ 94,000 | $ 102,000 | |||
Notes Payable to Related Parties [Member] | CNBB-RDF Holdings, LP [Member] | |||||
Related Party Transaction [Line Items] | |||||
Maturity Date | 2017-10 | ||||
Note payable, fixed bearing interest rate | 0.50% | ||||
Notes Payable to Related Parties [Member] | CNBB-RDF Holdings Otto Family [Member] | |||||
Related Party Transaction [Line Items] | |||||
Maturity Date | 2017-10 | ||||
Note payable, fixed bearing interest rate | 0.50% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - ft² | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Other Commitments [Line Items] | ||
Area of office properties | 12,500,000 | |
718 Fifth Avenue [Member] | ||
Other Commitments [Line Items] | ||
Put right notice period | 12 months | |
712 Fifth Avenue [Member] | ||
Other Commitments [Line Items] | ||
Equity method ownership percentage | 50.00% | 50.00% |
Predecessor [Member] | 718 Fifth Avenue [Member] | ||
Other Commitments [Line Items] | ||
Percentage of tenancy-in-common interest in property | 50.00% | |
Predecessor [Member] | 712 Fifth Avenue [Member] | ||
Other Commitments [Line Items] | ||
Equity method ownership percentage | 50.00% | |
Owned by Affiliate [Member] | Predecessor [Member] | 718 Fifth Avenue [Member] | Third Party Affiliate [Member] | ||
Other Commitments [Line Items] | ||
Equity method ownership percentage | 25.00% | |
Owned by Affiliate [Member] | Parent Company [Member] | Put Right Exercised [Member] | 718 Fifth Avenue [Member] | ||
Other Commitments [Line Items] | ||
Pre IPO ownership percentage | 25.00% | |
Owned by Affiliate [Member] | Retail Type Space [Member] | Predecessor [Member] | 718 Fifth Avenue [Member] | ||
Other Commitments [Line Items] | ||
Area of office properties | 19,050 |
Segments Disclosure - Additiona
Segments Disclosure - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segments Disclosure - Schedule
Segments Disclosure - Schedule of NOI for Each Reportable Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Property-related revenues | $ 171,680 | $ 169,501 |
Property-related operating expenses | (65,971) | (62,945) |
NOI from unconsolidated joint ventures | 4,823 | 4,428 |
NOI | 110,532 | 110,984 |
New York [Member] | ||
Segment Reporting Information [Line Items] | ||
Property-related revenues | 105,324 | 119,303 |
Property-related operating expenses | (44,759) | (44,137) |
NOI from unconsolidated joint ventures | 4,753 | 4,347 |
NOI | 65,318 | 79,513 |
Washington, D.C. [Member] | ||
Segment Reporting Information [Line Items] | ||
Property-related revenues | 23,787 | 19,982 |
Property-related operating expenses | (8,924) | (8,275) |
NOI | 14,863 | 11,707 |
San Francisco [Member] | ||
Segment Reporting Information [Line Items] | ||
Property-related revenues | 41,939 | 29,619 |
Property-related operating expenses | (10,605) | (7,173) |
NOI | 31,334 | 22,446 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Property-related revenues | 630 | 597 |
Property-related operating expenses | (1,683) | (3,360) |
NOI from unconsolidated joint ventures | 70 | 81 |
NOI | $ (983) | $ (2,682) |
Segments Disclosure - Schedul90
Segments Disclosure - Schedule of Reconciliation of NOI to Net Income (Loss) Attributable to Common Stockholders (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting [Abstract] | ||
NOI | $ 110,532 | $ 110,984 |
Fee income | 9,556 | 3,417 |
Depreciation and amortization expense | (62,992) | (74,812) |
General and administrative expenses | (13,581) | (13,961) |
Transaction related costs | (275) | (935) |
NOI from unconsolidated joint ventures | (4,823) | (4,428) |
Income from unconsolidated joint ventures | 1,937 | 1,496 |
Income (loss) from unconsolidated real estate funds | 288 | (326) |
Interest and other income, net | 3,200 | 1,700 |
Interest and debt expense | (39,733) | (37,119) |
Unrealized gain on interest rate swaps | 1,802 | 6,860 |
Net income (loss) before income taxes | 5,911 | (7,124) |
Income tax expense | (4,282) | (363) |
Net income (loss) | 1,629 | (7,487) |
Consolidated real estate fund | 88 | 674 |
Consolidated joint ventures | (1,291) | (1,252) |
Operating Partnership | (54) | 1,571 |
Net income (loss) attributable to common stockholders | $ 372 | $ (6,494) |
Segments Disclosure - Schedul91
Segments Disclosure - Schedule of Selected Balance Sheet Data for Each Reportable Segments Information (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Total assets | [1] | $ 8,885,514 | $ 8,867,168 | ||
Total liabilities | [1] | 4,040,156 | 3,981,221 | ||
Total equity | 4,845,358 | $ 4,885,947 | $ 4,901,311 | $ 4,959,515 | |
New York [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 5,589,690 | ||||
Total liabilities | 2,449,369 | ||||
Total equity | 3,140,321 | ||||
Washington, D.C. [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 1,068,604 | ||||
Total liabilities | 214,273 | ||||
Total equity | 854,331 | ||||
San Francisco [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 1,926,290 | ||||
Total liabilities | 1,050,151 | ||||
Total equity | 876,139 | ||||
Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 300,930 | ||||
Total liabilities | 326,363 | ||||
Total equity | $ (25,433) | ||||
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 87.3%. As of March 31, 2017, the assets and liabilities of the Operating Partnership include $1,541,463 and $1,043,902 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 12, Variable Interest Entities. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) | May 04, 2017 | May 03, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Jan. 12, 2017 |
Subsequent Event [Line Items] | |||||
Repayment of mortgage loan | $ 873,642,000 | $ 354,000 | |||
Waterview [Member] | |||||
Subsequent Event [Line Items] | |||||
Sale agreement amount | $ 460,000,000 | ||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Repayment under credit facility | $ 200,000,000 | ||||
Subsequent Event [Member] | Waterview [Member] | |||||
Subsequent Event [Line Items] | |||||
Sale agreement amount | $ 460,000,000 | ||||
Net proceeds from sale of property | 457,000,000 | ||||
Gain on sale of property | $ 110,000,000 | ||||
Subsequent Event [Member] | 1899 Pennsylvania Avenue [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | |||||
Subsequent Event [Line Items] | |||||
Repayment of mortgage loan | 87,179,000 | ||||
Subsequent Event [Member] | Liberty Place [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | |||||
Subsequent Event [Line Items] | |||||
Repayment of mortgage loan | $ 84,000,000 |