Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PGRE | |
Entity Registrant Name | PARAMOUNT GROUP, INC. | |
Entity Central Index Key | 1,605,607 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 237,253,335 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Real estate, at cost | |||
Land | $ 2,065,206 | $ 2,209,506 | |
Buildings and improvements | 5,998,805 | 6,119,969 | |
Rental property, at cost | 8,064,011 | 8,329,475 | |
Accumulated depreciation and amortization | (598,756) | (487,945) | |
Real estate, net | 7,465,255 | 7,841,530 | |
Cash and cash equivalents | 538,725 | 219,381 | |
Restricted cash | 30,902 | 31,044 | |
Investments in unconsolidated joint ventures | 75,255 | 44,762 | |
Investments in unconsolidated real estate funds | 9,007 | 7,253 | |
Preferred equity investments, net of allowance of $0 and $19,588 | 35,983 | 35,817 | |
Marketable securities | 26,668 | 29,039 | |
Accounts and other receivables, net of allowance of $503 and $277 | 16,205 | 17,082 | |
Deferred rent receivable | 254,002 | 220,826 | |
Deferred charges, net of accumulated amortization of $27,311 and $19,412 | 111,870 | 98,645 | |
Intangible assets, net of accumulated amortization of $230,985 and $200,857 | 287,222 | 352,206 | |
Other assets | 90,143 | 20,076 | |
Total assets | [1] | 8,941,237 | 8,917,661 |
LIABILITIES AND EQUITY | |||
Notes and mortgages payable, net of deferred financing costs of $35,112 and $41,800 | 3,564,688 | 3,541,300 | |
Revolving credit facility | 0 | 0 | |
Due to affiliates | 27,299 | 27,299 | |
Accounts payable and accrued expenses | 133,995 | 117,630 | |
Dividends and distributions payable | 26,596 | 25,211 | |
Intangible liabilities, net of accumulated amortization of $84,271 and $75,073 | 102,279 | 130,028 | |
Other liabilities | 56,968 | 54,109 | |
Total liabilities | [1] | 3,911,825 | 3,895,577 |
Commitments and contingencies | |||
Paramount Group, Inc. equity: | |||
Common stock $0.01 par value per share; authorized 900,000,000 shares; issued and outstanding 240,461,106 and 240,427,022 shares in 2018 and 2017, respectively | 2,402 | 2,403 | |
Additional paid-in-capital | 4,301,329 | 4,297,948 | |
Earnings less than distributions | (201,868) | (133,693) | |
Accumulated other comprehensive income | 31,530 | 10,083 | |
Paramount Group, Inc. equity | 4,133,393 | 4,176,741 | |
Noncontrolling interests in: | |||
Consolidated joint ventures | 399,934 | 404,997 | |
Consolidated real estate fund | 66,099 | 14,549 | |
Operating Partnership (25,127,003 and 24,620,279 units outstanding) | 429,986 | 425,797 | |
Total equity | 5,029,412 | 5,022,084 | |
Total liabilities and equity | $ 8,941,237 | $ 8,917,661 | |
[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 90.5% as of September 30, 2018. The assets and liabilities of the Operating Partnership, as of September 30, 2018, include $1,999,741 and $1,261,751 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 14, Variable Interest Entities (“VIEs”). |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | ||
Preferred equity investments, allowance | $ 0 | $ 19,588 | |
Accounts and other receivables, allowance | 503 | 277 | |
Deferred charges, accumulated amortization | 27,311 | 19,412 | |
Intangible assets, accumulated amortization | 230,985 | 200,857 | |
Notes and mortgages payable, deferred financing costs | 35,112 | 41,800 | |
Intangible liabilities, accumulated amortization | $ 84,271 | $ 75,073 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 900,000,000 | 900,000,000 | |
Common stock, shares issued | 240,461,106 | 240,427,022 | |
Common stock, shares outstanding | 240,461,106 | 240,427,022 | |
Operating partnership, units outstanding | 25,127,003 | 24,620,279 | |
Percentage of ownership in operating partnership | 90.50% | ||
Total assets | [1] | $ 8,941,237 | $ 8,917,661 |
Total liabilities | [1] | $ 3,911,825 | 3,895,577 |
Variable Interest Entities [Member] | |||
Percentage of ownership in operating partnership | 90.50% | ||
Total assets | $ 1,999,741 | 1,956,020 | |
Total liabilities | $ 1,261,751 | $ 1,264,338 | |
[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 90.5% as of September 30, 2018. The assets and liabilities of the Operating Partnership, as of September 30, 2018, include $1,999,741 and $1,261,751 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 14, Variable Interest Entities (“VIEs”). |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
REVENUES: | ||||
Rental income | $ 167,934,000 | $ 156,384,000 | $ 500,868,000 | $ 469,961,000 |
Tenant reimbursement income | 15,579,000 | 14,053,000 | 42,989,000 | 38,761,000 |
Fee and other income | 9,083,000 | 9,333,000 | 24,429,000 | 29,988,000 |
Total revenues | 192,596,000 | 179,770,000 | 568,286,000 | 538,710,000 |
EXPENSES: | ||||
Operating | 69,811,000 | 68,264,000 | 206,435,000 | 197,696,000 |
Depreciation and amortization | 64,610,000 | 66,515,000 | 194,541,000 | 198,143,000 |
General and administrative | 14,452,000 | 14,470,000 | 44,278,000 | 44,624,000 |
Transaction related costs | 450,000 | 274,000 | 863,000 | 1,051,000 |
Real estate impairment loss | 46,000,000 | |||
Total expenses | 149,323,000 | 149,523,000 | 492,117,000 | 441,514,000 |
Operating income | 43,273,000 | 30,247,000 | 76,169,000 | 97,196,000 |
Income from unconsolidated joint ventures | 472,000 | 671,000 | 2,931,000 | 19,143,000 |
Loss from unconsolidated real estate funds | (188,000) | (3,930,000) | (268,000) | (6,053,000) |
Interest and other income (loss), net | 2,778,000 | (17,668,000) | 6,888,000 | (11,982,000) |
Interest and debt expense | (37,105,000) | (35,733,000) | (109,996,000) | (107,568,000) |
Loss on early extinguishment of debt | (7,877,000) | |||
Gain on sale of real estate | 36,845,000 | 36,845,000 | 133,989,000 | |
Unrealized gain on interest rate swaps | 1,802,000 | |||
Net income (loss) before income taxes | 46,075,000 | (26,413,000) | 12,569,000 | 118,650,000 |
Income tax (expense) benefit | (1,814,000) | 1,010,000 | (2,171,000) | (4,242,000) |
Net income (loss) | 44,261,000 | (25,403,000) | 10,398,000 | 114,408,000 |
Less net (income) loss attributable to noncontrolling interests in: | ||||
Consolidated joint ventures | (2,713,000) | 14,217,000 | (5,520,000) | 11,029,000 |
Consolidated real estate fund | (86,000) | (114,000) | (668,000) | (20,195,000) |
Operating Partnership | (3,931,000) | 1,086,000 | (381,000) | (12,068,000) |
Net income (loss) attributable to common stockholders | $ 37,531,000 | $ (10,214,000) | $ 3,829,000 | $ 93,174,000 |
INCOME (LOSS) PER COMMON SHARE - BASIC: | ||||
Income (loss) per common share | $ 0.16 | $ (0.04) | $ 0.02 | $ 0.40 |
Weighted average shares outstanding | 240,447,921 | 239,445,810 | 240,365,882 | 235,151,398 |
INCOME (LOSS) PER COMMON SHARE - DILUTED: | ||||
Income (loss) per common share | $ 0.16 | $ (0.04) | $ 0.02 | $ 0.40 |
Weighted average shares outstanding | 240,489,138 | 239,445,810 | 240,391,184 | 235,177,683 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 44,261 | $ (25,403) | $ 10,398 | $ 114,408 | |
Other comprehensive income (loss): | |||||
Change in value of interest rate swaps | 3,392 | 738 | 23,738 | 729 | |
Pro rata share of other comprehensive (loss) income of unconsolidated joint ventures | [1] | (262) | 226 | (105) | 39 |
Comprehensive income (loss) | 47,391 | (24,439) | 34,031 | 115,176 | |
Less comprehensive (income) loss attributable to noncontrolling interests in: | |||||
Consolidated joint ventures | (2,713) | 14,217 | (5,520) | 11,029 | |
Consolidated real estate fund | (30) | (114) | (612) | (20,195) | |
Operating Partnership | (4,233) | 993 | (2,622) | (12,194) | |
Comprehensive income (loss) attributable to common stockholders | $ 40,415 | $ (9,343) | $ 25,277 | $ 93,816 | |
[1] | Represents foreign currency translation adjustments. No amounts were reclassified from accumulated other comprehensive income during any of the periods set forth above. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Restatement Adjustment | Common Stock [Member] | Common Stock [Member]Restatement Adjustment | Additional Paid in Capital [Member] | Additional Paid in Capital [Member]Restatement Adjustment | Earnings Less than Distributions [Member] | Earnings Less than Distributions [Member]Restatement Adjustment | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Restatement Adjustment | Noncontrolling InterestConsolidated Joint Ventures [Member] | Noncontrolling InterestConsolidated Joint Ventures [Member]Restatement Adjustment | Noncontrolling InterestConsolidated Real Estate Fund [Member] | Noncontrolling InterestConsolidated Real Estate Fund [Member]Restatement Adjustment | Noncontrolling InterestOperating Partnership [Member] | Noncontrolling InterestOperating Partnership [Member]Restatement Adjustment |
Beginning balance at Dec. 31, 2016 | $ 4,885,947 | $ 2,300 | $ 4,116,987 | $ (129,654) | $ 372 | $ 253,788 | $ 64,793 | $ 577,361 | ||||||||
Common stock, shares outstanding at Dec. 31, 2016 | 230,015,000 | |||||||||||||||
Net income (loss) | 114,408 | 93,174 | (11,029) | 20,195 | 12,068 | |||||||||||
Common shares issued upon redemption of common units | $ 100 | 166,424 | ||||||||||||||
Common shares issued upon redemption of common units | 10,001,000 | |||||||||||||||
Redemption of minority interest in operating partnerships | (166,524) | |||||||||||||||
Common shares 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 | 58,000 | |||||||||||||||
Dividends and distributions | (75,629) | (67,425) | (8,204) | |||||||||||||
Contributions from noncontrolling interests | 100,777 | 96,472 | 4,305 | |||||||||||||
Distributions to noncontrolling interests | (115,549) | (41,203) | (74,346) | |||||||||||||
Consolidation of 50 Beale Street | 110,007 | 110,007 | ||||||||||||||
Change in value of interest rate swaps | 729 | 600 | 129 | |||||||||||||
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures | 39 | 42 | (3) | |||||||||||||
Amortization of equity awards | 13,126 | 2,244 | 10,882 | |||||||||||||
Other | 8,455 | 610 | 7,845 | |||||||||||||
Ending balance at Sep. 30, 2017 | 5,042,156 | $ 2,400 | 4,286,265 | (104,059) | 1,014 | 408,035 | 14,947 | 433,554 | ||||||||
Common stock, shares outstanding at Sep. 30, 2017 | 240,074,000 | |||||||||||||||
Beginning balance at Dec. 31, 2017 | 5,022,084 | $ 5,029,170 | $ 2,403 | $ 2,403 | 4,297,948 | $ 4,297,948 | (133,693) | $ (133,164) | 10,083 | $ 10,083 | 404,997 | $ 404,997 | 14,549 | $ 21,106 | 425,797 | $ 425,797 |
Beginning balance (Basis adjustment upon adoption of ASU 2017-05) at Dec. 31, 2017 | $ 7,086 | 529 | 6,557 | |||||||||||||
Common stock, shares outstanding at Dec. 31, 2017 | 240,427,022 | 240,427,000 | 240,427,000 | |||||||||||||
Net income (loss) | $ 10,398 | 3,829 | 5,520 | 668 | 381 | |||||||||||
Common shares issued upon redemption of common units | $ 2 | 3,459 | ||||||||||||||
Common shares issued upon redemption of common units | 203,000 | |||||||||||||||
Redemption of minority interest in operating partnerships | (3,461) | |||||||||||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | (213) | (213) | ||||||||||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | 68,000 | |||||||||||||||
Repurchases of common shares | (3,569) | $ (3) | (3,566) | |||||||||||||
Repurchases of common shares | (237,000) | |||||||||||||||
Dividends and distributions | (79,843) | (72,149) | (7,694) | |||||||||||||
Contributions from noncontrolling interests | 44,381 | 44,381 | ||||||||||||||
Distributions to noncontrolling interests | (10,583) | (10,583) | ||||||||||||||
Change in value of interest rate swaps | 23,738 | 21,492 | 2,246 | |||||||||||||
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures | (105) | (44) | (56) | (5) | ||||||||||||
Amortization of equity awards | 16,209 | 2,206 | 14,003 | |||||||||||||
Other | (171) | 1,282 | (171) | (1) | (1,281) | |||||||||||
Ending balance at Sep. 30, 2018 | $ 5,029,412 | $ 2,402 | $ 4,301,329 | $ (201,868) | $ 31,530 | $ 399,934 | $ 66,099 | $ 429,986 | ||||||||
Common stock, shares outstanding at Sep. 30, 2018 | 240,461,106 | 240,461,000 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (Parentheticals) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Of Stockholders Equity [Abstract] | ||
Dividends and distributions, Per share and unit | $ 0.30 | $ 0.285 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 10,398,000 | $ 114,408,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 194,541,000 | 198,143,000 |
Real estate impairment loss | 46,000,000 | |
Straight-lining of rental income | (45,671,000) | (43,529,000) |
Gain on sale of real estate | (36,845,000) | (133,989,000) |
Amortization of stock-based compensation expense | 15,245,000 | 11,692,000 |
Amortization of above and below-market leases, net | (12,611,000) | (14,164,000) |
Amortization of deferred financing costs | 8,267,000 | 8,367,000 |
Income from unconsolidated joint ventures | (2,931,000) | (19,143,000) |
Distributions of earnings from unconsolidated joint ventures | 4,910,000 | 3,380,000 |
Realized and unrealized gains on marketable securities | (802,000) | (3,198,000) |
Loss from unconsolidated real estate funds | 268,000 | 6,053,000 |
Distributions of earnings from unconsolidated real estate funds | 232,000 | 275,000 |
Valuation allowance on preferred equity investment | 19,588,000 | |
Loss on early extinguishment of debt | 7,877,000 | |
Unrealized gain on interest rate swaps | (1,802,000) | |
Other non-cash adjustments | 308,000 | (1,104,000) |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | 877,000 | 2,260,000 |
Deferred charges | (20,637,000) | (25,429,000) |
Other assets | (31,148,000) | (18,094,000) |
Accounts payable and accrued expenses | 700,000 | (10,710,000) |
Other liabilities | 3,067,000 | 1,190,000 |
Net cash provided by operating activities | 134,168,000 | 102,071,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sale of real estate | 349,013,000 | 540,333,000 |
Additions to real estate | (85,621,000) | (59,255,000) |
Investments in unconsolidated joint ventures | (25,491,000) | (28,886,000) |
Sales of marketable securities | 16,352,000 | 25,855,000 |
Purchases of marketable securities | (13,192,000) | (28,133,000) |
Escrow deposits and loans receivable for Residential Development Fund | (15,680,000) | |
Contributions of capital to unconsolidated real estate funds | (2,254,000) | (790,000) |
Distributions of capital from unconsolidated joint ventures | 20,000,000 | |
Acquisitions of real estate | (161,184,000) | |
Distributions of capital from unconsolidated real estate funds | 13,849,000 | |
Net cash provided by investing activities | 223,127,000 | 321,789,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividends paid to common stockholders | (70,944,000) | (66,469,000) |
Contributions from noncontrolling interests | 44,381,000 | 100,777,000 |
Proceeds from notes and mortgages payable | 16,700,000 | 991,556,000 |
Distributions to noncontrolling interests | (10,583,000) | (115,549,000) |
Distributions paid to common unitholders | (7,514,000) | (9,100,000) |
Debt issuance costs | (6,351,000) | (7,344,000) |
Repurchases of common shares | (3,569,000) | |
Repurchase of shares related to stock compensation agreements and related tax withholdings | (213,000) | (154,000) |
Repayments of notes and mortgages payable | (1,044,821,000) | |
Repayment of borrowings under revolving credit facility | (290,000,000) | |
Borrowings under revolving credit facility | 60,000,000 | |
Transfer tax refund in connection with the acquisition of noncontrolling interests | 9,555,000 | |
Settlement of interest rate swap liabilities | (19,425,000) | |
Loss on early extinguishment of debt | (7,877,000) | |
Net cash used in financing activities | (38,093,000) | (398,851,000) |
Net increase in cash and cash equivalents and restricted cash | 319,202,000 | 25,009,000 |
Cash and cash equivalents and restricted cash at beginning of period | 250,425,000 | 192,339,000 |
Cash and cash equivalents and restricted cash at end of period | 569,627,000 | 217,348,000 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | ||
Cash and cash equivalents at beginning of period | 219,381,000 | 162,965,000 |
Restricted cash at beginning of period | 31,044,000 | 29,374,000 |
Cash and cash equivalents and restricted cash at beginning of period | 250,425,000 | 192,339,000 |
Cash and cash equivalents at end of period | 538,725,000 | 185,028,000 |
Restricted cash at end of period | 30,902,000 | 32,320,000 |
Cash and cash equivalents and restricted cash at end of period | 569,627,000 | 217,348,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash payments for interest | 101,989,000 | 106,731,000 |
Cash payments for income taxes, net of refunds | 1,541,000 | 5,042,000 |
NON-CASH TRANSACTIONS: | ||
Dividends and distributions declared but not yet paid | 26,596,000 | 25,211,000 |
Additions to real estate included in accounts payable and accrued expenses | 32,790,000 | 10,986,000 |
Basis adjustment to investment in unconsolidated joint ventures upon adoption of ASU 2017-05 | 7,086,000 | |
Write-off of fully amortized and/or depreciated assets | 3,141,000 | 5,958,000 |
Common shares issued upon redemption of common units | 3,461,000 | 166,524,000 |
Change in value of interest rate swaps | $ (23,738,000) | (729,000) |
Consolidation of real estate | 102,512,000 | |
Assumption of notes and mortgages payable | $ 228,000,000 |
Organization and Business
Organization and Business | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018, our portfolio consisted of 12 Class A office properties aggregating approximately 11.9 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 90.5% of, the Operating Partnership as of September 30, 2018. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
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 are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conjunction with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted. These consolidated financial statements include the accounts of Paramount and its consolidated subsidiaries, including the Operating Partnership. In the opinion of management, all significant adjustments (which include only normal recurring adjustments) and eliminations (which include intercompany balances and transactions) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. The consolidated balance sheet as of December 31, 2017 was derived from audited financial statements as of that date, but does not include all information and disclosures required by GAAP. These consolidated financial statements 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, 2017, as filed with the SEC. 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, 2017. Use of Estimates 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 materially from those estimates. The results of operations for the three and nine months ended September 30, 2018, are not necessarily indicative of the operating results for the full year. Reclassification Certain prior year balances have been reclassified to conform to current year presentation. Recently Issued Accounting Pronouncements Not Materially Impacting Our Financial Statements In May 2014, the Financial Accounting Standard’s Board (“FASB”) issued ASU 2014-09, an update to ASC Topic 606, Revenue from Contracts with Customers Revenues In June 2016, the FASB issued ASU 2016-13, an update to ASC Topic 326, Financial Instruments – Credit Losses In May 2017, the FASB issued ASU 2017-09, an update to ASC Topic 718, Compensation – Stock Compensation In August 2017, the FASB issued ASU 2017-12, an update to ASC Topic 815, Derivatives and Hedging. In August 2018, the FASB issued ASU 2018-13, an update to ASC Topic 820, Fair Value Measurements Recently Issued Accounting Pronouncements Impacting or Potentially Impacting Our Financial Statements In February 2016, the FASB issued ASU 2016-02, an update to ASC Topic 842, Leases While accounting for lessors under ASU 2016-02 is substantially similar to existing lease accounting guidance, lessors are required to separate payments received pursuant to a lease between lease components (rental income) and non-lease components (revenue related to various services we provide). In July 2018, the FASB issued ASU 2018-11, which provided lessors with a practical expedient to not separate lease and non-lease components, if certain criteria are met. We believe we meet such criteria and upon the adoption of ASU 2016-02, we plan to elect this practical expedient. Furthermore, ASU 2016-02 also updates the definition of initial direct costs for both lessees and lessors to include only incremental costs of a lease that would not have been incurred if the lease had not been obtained. As a result, upon adoption of ASU 2016-02 on January 1, 2019, we will no longer be able to capitalize internal leasing costs and will have to expense them instead. We had capitalized internal leasing costs of $1,169,000 and $1,491,000 for the three months ended September 30, 2018 and 2017, respectively, and $4,276,000 and $4,488,000, for the nine months ended September 30, 2018 and 2017, respectively. In November 2016, the FASB issued ASU 2016-18, an update to ASC Topic 230, Statement of Cash Flows In February 2017, the FASB issued ASU 2017-05, an update to ASC Topic 610, Other Income Investments in Unconsolidated Joint Ventures |
Dispositions
Dispositions | 9 Months Ended |
Sep. 30, 2018 | |
Assets Of Disposal Group Including Discontinued Operation [Abstract] | |
Dispositions | 3 . Dispositions 2099 Pennsylvania Avenue On August 9, 2018, we completed the sale of 2099 Pennsylvania Avenue, a 208,776 square foot, Class A office building in Washington, D.C. for $219,900,000 and recognized a gain of $35,836,000, which is included as a component of “gain on sale of real estate” on our consolidated statements of income for the three and nine months ended September 30, 2018. 425 Eye Street On September 27, 2018, we completed the sale of 425 Eye Street, a 372,552 square foot, Class A office building in Washington, D.C. for $157,000,000 and recognized a gain of $1,009,000, which is included as a component of “gain on sale of real estate” on our consolidated statements of income for the three and nine months ended September 30, 2018. Waterview On May 3, 2017, we completed the sale of Waterview, a 636,768 square foot, Class A office building in Rosslyn, Virginia for $460,000,000 and recognized a gain of $110,583,000, which is included as a component of “gain on sale of real estate” on our consolidated statement of income for the nine months ended September 30, 2017. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 4 . Acquisitions 50 Beale Street On July 17, 2017, we and a new joint venture in which we have a 36.6% interest, acquired, through a series of transactions, a 62.2% interest in 50 Beale Street, a 660,625 square foot, Class A office building in San Francisco. Subsequent to the acquisition, we own a direct 13.2% interest in the property and the new joint venture owns the remaining 49.0% interest. Accordingly, our economic interest in the property is 31.1%. The acquisition valued the property at $517,500,000 and included the assumption of $228,000,000 of existing debt. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | 5 . Investments in Unconsolidated Joint Ventures Prior to March 14, 2018, RDF, in which we have a 7.4% interest, owned 20.0% of One Steuart Lane (the “Property”). On March 14, 2018, RDF transferred its 20.0% interest to a new joint venture in which it owns a 75.0% interest. Separately on March 14, 2018, RDF acquired an additional 10.0% interest in the Property from its existing partner. Subsequent to these transactions RDF owns a 25.0% economic interest in the Property, comprised of the newly acquired 10.0% interest and an indirect 15.0% interest it owns through the joint venture. As a result of these transactions, RDF was required to consolidate its 75.0% interest in the joint venture that owns 20.0% of the Property, and reflect the 25.0% interest in this venture (5.0% economic interest in the Property) it does not own as noncontrolling interests. We continue to consolidate our 7.4% interest in RDF and reflect the 92.6% interest we do not own as noncontrolling interests. As of September 30, 2018, our economic interest in the Property was 1.85%. The following tables summarize our investments in unconsolidated joint ventures as of the dates thereof and the income or loss from these investments for the periods set forth below. (Amounts in thousands) Paramount As of Our Share of Investments: Ownership September 30, 2018 December 31, 2017 712 Fifth Avenue (1) 50.0% $ - $ - 60 Wall Street (2) 5.0% 23,121 25,083 One Steuart Lane (2) 25.0% (3) 48,530 (4) 16,031 Oder-Center, Germany (2) 9.5% 3,604 3,648 Investments in unconsolidated joint ventures $ 75,255 $ 44,762 For the Three Months Ended For the Nine Months Ended (Amounts in thousands) Paramount September 30, September 30, Our Share of Net Income (Loss): Ownership 2018 2017 2018 2017 712 Fifth Avenue (1) 50.0% $ 558 $ 596 $ 3,166 $ 19,030 60 Wall Street (2) 5.0% (116 ) (45 ) (291 ) (81 ) One Steuart Lane (2) 25.0% (3) - 100 (18 ) 133 Oder-Center, Germany (2) 9.5% 30 20 74 61 Income from unconsolidated joint ventures $ 472 $ 671 $ 2,931 $ 19,143 (1) As of September 30, 2018, our basis in the partnership was negative $20,256 resulting from distributions made to us in excess of our share of earnings recognized. Accordingly, we no longer recognize our proportionate share of earnings from the venture because we have no further obligation to fund additional capital to the venture. Instead, we only recognize earnings to the extent we receive cash distributions from the venture. (2) As of September 30, 2018, the carrying amount of our investments in 60 Wall Street, One Steuart Lane and Oder-Center is greater than our share of equity in these investments by $2,866, $692 and $5,036, respectively. (3) Represents RDF’s economic interest in the Property. (4) Includes a $7,086 basis adjustment which was recorded upon the adoption of ASU 2017-05 on January 1, 2018. 712 Fifth Avenue 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: September 30, 2018 December 31, 2017 Real estate, net $ 199,862 $ 202,040 Other assets 61,283 58,034 Total assets $ 261,145 $ 260,074 Notes and mortgages payable, net $ 296,440 $ 296,132 Other liabilities 5,217 4,615 Total liabilities 301,657 300,747 Partners’ deficit (40,512 ) (40,673 ) Total liabilities and partners’ deficit $ 261,145 $ 260,074 (Amounts in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, Income Statements: 2018 2017 2018 2017 Rental income $ 12,229 $ 12,626 $ 36,887 $ 38,284 Tenant reimbursement income 1,227 1,338 3,817 3,855 Fee and other income 125 507 742 1,101 Total revenues 13,581 14,471 41,446 43,240 Operating expenses 6,250 6,197 18,560 18,265 Depreciation and amortization 2,864 3,067 8,788 9,062 Total expenses 9,114 9,264 27,348 27,327 Operating income 4,467 5,207 14,098 15,913 Interest and other income, net 146 68 416 140 Interest and debt expense (2,701 ) (2,700 ) (8,020 ) (8,651 ) Unrealized gain on interest rate swaps - - - 1,896 Net income $ 1,912 $ 2,575 $ 6,494 $ 9,298 |
Investments in Unconsolidated R
Investments in Unconsolidated Real Estate Funds | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate Fund [Abstract] | |
Investments in Unconsolidated Real Estate Funds | 6 . Investments in Unconsolidated Real Estate Funds We are the general partner and investment manager of Paramount Group Real Estate Fund VII, LP (“Fund VII”) and its parallel fund, Paramount Group Real Estate Fund VII-H, LP (“Fund VII-H”). As of September 30, 2018, Fund VII and Fund VII-H own 100% of Zero Bond Street. We also manage Paramount Group Real Estate Fund VIII, LP (“Fund VIII”), our Alternative Investment Fund, which invests in mortgage and mezzanine loans and preferred equity investments. The following tables summarize our investments in these unconsolidated real estate funds as of the dates thereof and the income or loss recognized for the periods set forth below. As of (Amounts in thousands) September 30, 2018 December 31, 2017 Our Share of Investments: Property funds $ 2,059 $ 2,429 Alternative investment fund 6,948 4,824 Investments in unconsolidated real estate funds $ 9,007 $ 7,253 For the Three Months Ended For the Nine Months Ended (Amounts in thousands) September 30, September 30, Our Share of Net Income (Loss): 2018 2017 2018 2017 Net investment income $ 82 $ 104 $ 207 $ 228 Net realized loss - (839 ) - (665 ) Net unrealized (loss) gain (270 ) 202 (475 ) (26 ) Carried interest - (3,397 ) - (5,590 ) Loss from unconsolidated real estate funds $ (188 ) $ (3,930 ) $ (268 ) $ (6,053 ) The following tables provide summarized financial information for Fund VII as of the dates and for the periods set forth below. As of (Amounts in thousands) September 30, 2018 December 31, 2017 Balance Sheets: Real estate investments $ 28,109 $ 32,943 Cash and cash equivalents 144 138 Total assets $ 28,253 $ 33,081 Other liabilities $ 1,171 $ 1,058 Total liabilities 1,171 1,058 Equity 27,082 32,023 Total liabilities and equity $ 28,253 $ 33,081 For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2018 2017 2018 2017 Income Statements: Investment income $ 4 $ 479 $ 9 $ 1,441 Investment expenses 43 120 163 1,156 Net investment (loss) income (39 ) 359 (154 ) 285 Net realized losses - (3,809 ) - (3,875 ) Net unrealized losses (3,880 ) (4,871 ) (6,897 ) (9,192 ) Loss from real estate fund investments $ (3,919 ) $ (8,321 ) $ (7,051 ) $ (12,782 ) |
Preferred Equity Investments
Preferred Equity Investments | 9 Months Ended |
Sep. 30, 2018 | |
Schedule Of Investments [Abstract] | |
Preferred Equity Investments | 7 . Preferred Equity Investments We own a 24.4% interest in PGRESS Equity Holdings L.P., an entity that owns certain preferred equity investments that are consolidated into our consolidated financial statements. 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 September 30, 2018 December 31, 2017 470 Vanderbilt Avenue (1) 24.4% 10.3% Feb-2019 $ 35,983 $ 35,817 2 Herald Square (2) n/a n/a n/a - 19,588 35,983 55,405 Less: valuation allowance (2) - (19,588 ) Total preferred equity investments, net $ 35,983 $ 35,817 (1) Represents a preferred equity investment in a partnership that owns 470 Vanderbilt Avenue, a 686,000 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 preferred equity investment in a partnership that owned 2 Herald Square, a 369,000 square foot office and retail property in Manhattan. In April 2017, the borrower defaulted on the obligation to extend the maturity date or redeem the preferred equity investment and accordingly, we had recorded a valuation allowance of $19,588. In May 2018, the senior lender foreclosed out our interests and accordingly, we wrote off our preferred equity investment and the related valuation allowance. |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Liabilities | 8 . Intangible Assets and Liabilities The following table summarizes our intangible assets (acquired above-market leases and acquired in-place leases) and intangible liabilities (acquired below-market leases) and the related amortization as of the dates and for the periods set forth below. As of (Amounts in thousands) September 30, 2018 December 31, 2017 Intangible assets: Gross amount $ 518,207 $ 553,063 Accumulated amortization (230,985 ) (200,857 ) $ 287,222 $ 352,206 Intangible liabilities: Gross amount $ 186,550 $ 205,101 Accumulated amortization (84,271 ) (75,073 ) $ 102,279 $ 130,028 For the Three Months Ended For the Nine Months Ended September 30, September 30, (Amounts in thousands) 2018 2017 2018 2017 Amortization of above and below-market leases, net (component of “rental income”) $ 3,887 $ 3,175 $ 12,611 $ 14,164 Amortization of acquired in-place leases (component of “depreciation and amortization”) $ 14,865 $ 17,929 $ 44,879 $ 58,352 The table below sets forth annual amortization of acquired above and below-market leases, net and amortization of acquired in-place leases for each of the five succeeding years commencing from January 1, 2019. (Amounts in thousands) For the Year Ending December 31, Above and Below-Market Leases, Net In-Place Leases 2019 $ 11,851 $ 49,378 2020 6,654 38,738 2021 3,361 28,150 2022 892 23,598 2023 4,407 18,917 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 9 . Debt On January 10, 2018, we amended and restated the credit agreement governing our revolving credit facility. The maturity date of the revolving credit facility was extended from November 2018 to January 2022, with two six-month extension options, and the capacity was increased to $1,000,000,000 from $800,000,000. The interest rate on the revolving credit facility, at current leverage levels, was lowered by 10 basis points from LIBOR plus 125 basis points to LIBOR plus 115 basis points, and the facility fee was reduced by 5 basis points from 25 basis points to 20 basis points. The following is a summary of our outstanding debt. Maturity Fixed/ Interest Rate as of As of (Amounts in thousands) Date Variable Rate September 30, 2018 September 30, 2018 December 31, 2017 Notes and mortgages payable: 1633 Broadway Dec-2022 Fixed (1) 3.54 % $ 1,000,000 $ 1,000,000 Dec-2022 L + 175 bps 3.85 % 46,800 (2) 30,100 (2) 3.55 % 1,046,800 1,030,100 One Market Plaza (3) Feb-2024 Fixed 4.03 % 975,000 975,000 1301 Avenue of the Americas Nov-2021 Fixed 3.05 % 500,000 500,000 Nov-2021 L + 180 bps 3.93 % 350,000 350,000 3.41 % 850,000 850,000 31 West 52nd Street May-2026 Fixed 3.80 % 500,000 500,000 50 Beale Street (3) Oct-2021 Fixed 3.65 % 228,000 228,000 Total notes and mortgages payable 3.69 % 3,599,800 3,583,100 Less: deferred financing costs (35,112 ) (41,800 ) Total notes and mortgages payable, net $ 3,564,688 $ 3,541,300 $1.0 Billion Revolving Credit Facility Jan-2022 L + 115 bps n/a $ - $ - (1) Represents loans with variable interest rates that have been fixed by interest rate swaps. See Note 10, Derivative Instruments and Hedging Activities (2) Represents amounts borrowed to fund leasing costs at the property. The loan balance can be increased by an additional $200,000 upon the satisfaction of certain performance hurdles related to the property. (3) Our ownership interest in One Market Plaza and 50 Beale Street is 49.0% and 31.1%, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 10 . Derivative Instruments and Hedging Activities Interest Rate Swaps – Designated as Cash Flow Hedges 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 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 $3,392,000 and $738,000 for the three months ended September 30, 2018 and 2017, respectively, and $23,738,000 and $729,000 for the nine months ended September 30, 2018 and 2017, respectively, from the changes in fair value of these interest rate swaps. See Note 12, Accumulated Other Comprehensive Income (Loss) The table below summarizes the fair value of our interest rate swaps that are designated as cash flow hedges. Fair Value as of (Amounts in thousands) September 30, 2018 December 31, 2017 Interest rate swap assets designated as cash flow hedges (included in “other assets”) $ 33,276 $ 9,855 Interest rate swap liabilities designated as cash flow hedges (included in “other liabilities”) $ - $ 317 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 September 30, 2018, we did not have any obligations relating to our swaps that contained such provisions. Interest Rate Swaps – Non-designated Hedges As of September 30, 2018, we did not have any interest rate swaps that were not designated as hedges. Prior to January 19, 2017, our interest rate swap on One Market Plaza was not designated as a hedge. This interest rate swap was terminated in connection with the refinancing of the property on January 19, 2017. For the period from January 1, 2017 through January 19, 2017, we recognized an unrealized gain of $1,802,000, in connection with this interest rate swap, which is included as “unrealized gain on interest rate swaps” in our consolidated statement of income for the nine months ended September 30, 2017. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Equity | 11. Equity Stock Repurchase Program On August 1, 2017, we received authorization from our Board of Directors to repurchase up to $200,000,000 of our common stock from time to time, in the open market or in privately negotiated transactions. As of October 31, 2018, we have repurchased an aggregate of 3,443,000 shares, or $50,000,000 of our common stock, at a weighted average price of $14.53 per share. Of this amount, 236,674 shares, or $3,569,000 of our common stock, was repurchased in the three months ended September 30, 2018, at a weighted average price of $15.08 per share. As of November 1, 2018, we have $150,000,000 available for future repurchases. The amount and timing of repurchases, if any, will depend on a number of factors, including, the price and availability of our shares, trading volume and general market conditions. The stock repurchase program may be suspended or discontinued at any time. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 1 2 . Accumulated Other Comprehensive Income (Loss) The following table sets forth changes in accumulated other comprehensive income (loss) by component for the three and nine months ended September 30, 2018 and 2017, including amounts attributable to noncontrolling interests in the Operating Partnership. For the Three Months Ended For the Nine Months Ended September 30, September 30, (Amounts in thousands) 2018 2017 2018 2017 Amount of income (loss) related to the effective portion of cash flow hedges recognized in other comprehensive income $ 4,161 $ (697 ) $ 24,363 $ (5,226 ) Amounts reclassified from accumulated other comprehensive income (decreasing) increasing interest and debt expense (769 ) 1,435 (625 ) 5,955 Amount of (loss) income related to unconsolidated joint ventures recognized in other comprehensive income (loss) (1) (262 ) 226 (105 ) 39 Amount of gain (loss) related to the ineffective portion of cash flow hedges and amount excluded from effectiveness testing - - - - (1) |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 1 3 . Noncontrolling Interests Consolidated Joint Ventures Noncontrolling interests in consolidated joint ventures consist of equity interests held by third parties in One Market Plaza, 50 Beale Street and PGRESS Equity Holdings L.P. As of September 30, 2018 and December 31, 2017, noncontrolling interests in our consolidated joint ventures aggregated $399,934,000 and $404,997,000, respectively. Consolidated Real Estate Fund Noncontrolling interests in our consolidated real estate fund consist of equity interests held by third parties in RDF. As of September 30, 2018 and December 31, 2017, the noncontrolling interests in our consolidated real estate fund aggregated $66,099,000 and $14,549,000, 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 September 30, 2018 and December 31, 2017, noncontrolling interests in the Operating Partnership on our consolidated balance sheets had a carrying amount of $429,986,000 and $425,797,000, respectively, and a redemption value of $379,166,000 and $390,231,000, respectively. |
Variable Interest Entities (_VI
Variable Interest Entities (“VIEs”) | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities (“VIEs”) | 1 4 . 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 deemed to be the primary beneficiary. Consolidated VIEs We are the sole general partner of, and own approximately 90.5% of, the Operating Partnership as of September 30, 2018. 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 September 30, 2018 and December 31, 2017, the Operating Partnership held interests in consolidated VIEs owning properties, a real estate fund and preferred equity investments that were determined to be VIEs. 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) September 30, 2018 December 31, 2017 Real estate, net $ 1,704,019 $ 1,726,800 Cash and restricted cash 78,563 55,658 Investments in unconsolidated joint ventures 48,530 16,031 Preferred equity investments, net 35,983 35,817 Accounts and other receivables, net 1,571 2,550 Deferred rent receivable 50,053 44,000 Deferred charges, net 12,945 8,123 Intangible assets, net 50,822 66,112 Other assets 17,255 929 Total VIE assets $ 1,999,741 $ 1,956,020 Notes and mortgages payable, net $ 1,197,385 $ 1,196,607 Accounts payable and accrued expenses 29,237 21,211 Intangible liabilities, net 35,124 46,365 Other liabilities 5 155 Total VIE liabilities $ 1,261,751 $ 1,264,338 Unconsolidated VIEs As of September 30, 2018, the Operating Partnership held variable interests in entities that own our unconsolidated real estate funds that were deemed to be VIEs. The table below summarizes our investments in these unconsolidated real estate funds and the maximum risk of loss from these investments. As of (Amounts in thousands) September 30, 2018 December 31, 2017 Investments $ 9,007 $ 7,253 Asset management fees and other receivables 681 597 Maximum risk of loss $ 9,688 $ 7,850 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 1 5 . Fair Value Measurements 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 and interest rate swaps. The table below aggregates the fair values of these financial assets and liabilities as of the dates set forth below, based on their levels in the fair value hierarchy. As of September 30, 2018 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 26,668 $ 26,668 $ - $ - Interest rate swap assets (included in “other assets”) 33,276 - 33,276 - Total assets $ 59,944 $ 26,668 $ 33,276 $ - As of December 31, 2017 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 29,039 $ 29,039 $ - $ - Interest rate swap assets (included in “other assets”) 9,855 - 9,855 - Total assets $ 38,894 $ 29,039 $ 9,855 $ - Interest rate swap liabilities (included in “other liabilities”) $ 317 $ - $ 317 $ - Total liabilities $ 317 $ - $ 317 $ - Financial Assets and Liabilities Not Measured at Fair Value Financial assets and liabilities not measured at fair value on our consolidated balance sheets consists of preferred equity investments, notes and mortgages payable and the revolving credit facility. The following is a summary of the carrying amounts and fair value of these financial instruments as of the dates set forth below. As of September 30, 2018 As of December 31, 2017 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Preferred equity investments, net $ 35,983 $ 36,270 $ 35,817 $ 36,112 Total assets $ 35,983 $ 36,270 $ 35,817 $ 36,112 Notes and mortgages payable $ 3,599,800 $ 3,572,687 $ 3,583,100 $ 3,596,953 Revolving credit facility - - - - Total liabilities $ 3,599,800 $ 3,572,687 $ 3,583,100 $ 3,596,953 |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2018 | |
Revenues [Abstract] | |
Revenues | 1 6 . Revenues Our revenues consist primarily of rental income, tenant reimbursement income and fee and other income. The following table sets forth the details of our revenues. For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2018 2017 2018 2017 Rental income $ 167,934 $ 156,384 $ 500,868 $ 469,961 Tenant reimbursement income 15,579 14,053 42,989 38,761 Fee and other income: Fee income: Property management 1,476 1,673 4,468 4,815 Asset management 2,222 1,997 5,655 6,622 Acquisition, disposition and leasing - 1,475 1,750 7,045 Other 381 689 1,080 1,356 Total fee income 4,079 5,834 12,953 19,838 Lease termination income 1,561 954 1,618 1,915 Other income (1) 3,443 2,545 9,858 8,235 Total fee and other income 9,083 9,333 24,429 29,988 Total revenues $ 192,596 $ 179,770 $ 568,286 $ 538,710 (1) Primarily comprised of (i) tenant requested services, including overtime heating and cooling and (ii) parking income. Property-related Revenues Property-related revenue is recognized in accordance with ASC Topic 840, Leases Revenue from Contracts with Customers Revenue from contracts with customers, which is primarily comprised of (i) property management fees, (ii) asset management fees, (iii) fees relating to acquisitions, dispositions and leasing services and (iv) other fee income, is recognized in accordance with ASC Topic 606, Revenue From Contracts With Customers. Fee income is recognized as and when we satisfy our performance obligations pursuant to contractual agreements. Property management and asset management services are provided continuously over time and revenue is recognized over that time. Fee income relating to acquisitions, dispositions and leasing services is recognized upon completion of the acquisition, disposition or leasing services as required in the contractual agreements. The amount of fee income to be recognized is stated in the contract as a fixed price or as a stated percentage of revenues, contributed capital or transaction price. Fee income is reported in a non-operating segment, and therefore is shown as a reconciling item to net income in Note 24, Segments The table below sets forth the amounts receivable from our customers under our various fee agreements and are included as a component of “accounts and other receivables” on our consolidated balance sheets. Acquisition Property Asset Disposition (Amounts in thousands) Total Management Management and Leasing Other Accounts and other receivables: Balance as of December 31, 2017 $ 1,558 $ 290 $ 762 $ 490 $ 16 Balance as of September 30, 2018 1,882 472 894 490 26 Increase $ 324 $ 182 $ 132 $ - $ 10 As of September 30, 2018 and December 31, 2017, our consolidated balance sheets included $475,000 and $387,000, respectively, of deferred revenue in connection with prepayments for services we have not yet provided. These amounts are included as a component of “accounts payable and accrued expenses” on our consolidated balance sheets and will be recognized as income upon completion of the required services. There are no other contract assets or liabilities as of September 30, 2018 and December 31, 2017. |
Real Estate Impairment Loss
Real Estate Impairment Loss | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Real Estate Impairment Loss | 17. Real Estate Impairment Loss On June 30, 2018, we wrote down the value of certain real estate assets in our Washington, D.C. portfolio. Our estimates of fair value were determined using discounted cash flow models, which considered, among other things, anticipated holding periods, current market conditions and utilized unobservable quantitative inputs, including appropriate capitalization and discount rates. Accordingly, we recorded a $46,000,000 impairment loss based on the excess of the carrying value over the estimated fair value, which is included as “real estate impairment loss” on our consolidated statement of income for the nine months ended September 30, 2018. |
Interest and Other Income (Loss
Interest and Other Income (Loss), net | 9 Months Ended |
Sep. 30, 2018 | |
Interest And Other Income [Abstract] | |
Interest and Other Income (Loss), net | 1 8 . Interest and Other Income (Loss), net The following table sets forth the details of interest and other income (loss). For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2018 2017 2018 2017 Preferred equity investment income (1) $ 930 $ 961 $ 2,746 $ 3,327 Interest and other income 858 147 2,862 743 Mark-to-market of investments in our deferred compensation plans (2) 990 812 1,280 3,536 Valuation allowance on preferred equity investment (3) - (19,588 ) - (19,588 ) Total interest and other income (loss), net $ 2,778 $ (17,668 ) $ 6,888 $ (11,982 ) (1) Represents income from our preferred equity investments in PGRESS Equity Holdings L.P., of which our 24.4% share is $227 and $243 for the three months ended September 30, 2018 and 2017, respectively, and $669 and $819 for the nine months ended September 30, 2018 and 2017, respectively. See Note 7, 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 deferred compensation plan liabilities, which is included as a component of “general and administrative” expenses on our consolidated statements of income. (3) Represents the valuation allowance on 2 Herald Square, our preferred equity investment in PGRESS Equity Holdings L.P., of which our 24.4% share was $4,780, and $14,808 was attributable to noncontrolling interests. In May 2018, the senior lender foreclosed out our interests and accordingly, we wrote off our preferred equity investment. |
Interest and Debt Expense
Interest and Debt Expense | 9 Months Ended |
Sep. 30, 2018 | |
Interest And Debt Expense [Abstract] | |
Interest and Debt Expense | 19. Interest and Debt Expense The following table sets forth the details of interest and debt expense. For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2018 2017 2018 2017 Interest expense $ 34,353 $ 32,914 $ 101,729 $ 99,201 Amortization of deferred financing costs 2,752 2,819 8,267 8,367 Total interest and debt expense $ 37,105 $ 35,733 $ 109,996 $ 107,568 |
Incentive Compensation
Incentive Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Compensation | 20 . Incentive Compensation Stock-Based Compensation We account for all stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation 2017 Performance-Based Awards Program (“2017 Performance Program”) On February 5, 2018, the Compensation Committee of our Board of Directors (the “Compensation Committee”) approved the 2017 Performance Program, a multi-year performance-based long-term equity 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, 2018 and continuing through December 31, 2020, on both an absolute basis and relative basis as follows: • 25.0% of the award is earned if our TSR over the three-year performance measurement period equals or exceeds 30.0%, with no awards being earned if our TSR over such period is less than 18.0% and awards being determined based on linear interpolation if our TSR over such period falls between such ranges. • 75.0% of the award is earned if our TSR over the three-year performance measurement period equals or exceeds the 80th percentile of the performance of the SNL Office REIT Index constituents on a relative basis, with no awards being earned if our TSR over such period is less than the 30th percentile and awards being determined based on linear interpolation if our TSR over such period falls between such ranges. Awards granted to our Chief Executive Officer, under the 2017 Performance Program include an additional performance feature requiring threshold TSR performance on both an absolute and a relative basis in order for any awards to be earned. Accordingly, our Chief Executive Officer will not earn any awards under the 2017 Performance Program unless our TSR for the performance measurement period is 18.0% or higher and in the 30th percentile or higher of the SNL Office REIT Index constituents. In addition, if the designated performance objectives are achieved, awards earned under the 2017 Performance Program are also subject to vesting based on continued employment with us through December 31, 2021, with 50.0% of each award vesting upon the conclusion of the performance measurement period, and the remaining 50.0% vesting on December 31, 2021. Furthermore, our Named Executive Officers are required to hold earned awards for an additional year following vesting. The fair value of the awards granted under the 2017 Performance Program on the date of the grant was $7,009,000 and is being amortized into expense over the four-year vesting period using a graded vesting attribution method. 2015 Performance-Based Awards Program (“2015 Performance Program”) On April 3, 2018, the Compensation Committee determined that the performance goals set forth in the 2015 Performance Program were not satisfied during the performance measurement period, which ended on March 31, 2018. Accordingly, all of the 779,055 LTIP units that were granted on April 1, 2015, were forfeited, with no awards being earned. As of April 3, 2018, we had $947,000 of total unrecognized compensation cost related to these awards, which will be recognized over a weighted-average period of 1.6 years. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 2 1 . Earnings Per Share The following table provides a summary of net income 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 For the Nine Months Ended September 30, September 30, (Amounts in thousands, except per share amounts) 2018 2017 2018 2017 Numerator: Net income (loss) attributable to common stockholders $ 37,531 $ (10,214 ) $ 3,829 $ 93,174 Earnings allocated to unvested participating securities (27 ) (13 ) (63 ) (86 ) Numerator for income (loss) per common share - basic and diluted $ 37,504 $ (10,227 ) $ 3,766 $ 93,088 Denominator: Denominator for basic income (loss) per common share - weighted average shares 240,448 239,446 240,366 235,151 Effect of dilutive stock-based compensation plans (1) 41 - 25 27 Denominator for diluted income (loss) per common share - weighted average shares 240,489 239,446 240,391 235,178 Income (loss) per common share - basic and diluted $ 0.16 $ (0.04 ) $ 0.02 $ 0.40 (1) The effect of dilutive securities excludes 27,322 and 27,911 weighted average share equivalents for the three months ended September 30, 2018 and 2017, respectively, and 26,452 and 32,036 weighted average share equivalents for the nine months ended September 30, 2018 and 2017, respectively, as their effect was anti-dilutive. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | 2 2 . Related Parties Due to Affiliates As of September 30, 2018 and December 31, 2017, 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 for the three months ended September 30, 2018 and 2017, respectively, and $290,000 and $103,000 for the nine months ended September 30, 2018 and 2017, respectively, in connection with these notes, which is included as a component of “interest and debt expense” on our consolidated statements of income. Management Agreements We provide property management, leasing and other related services to certain properties owned by members of the Otto Family. We recognized fee income of $200,000 and $207,000 for the three months ended September 30, 2018 and 2017, respectively, and $624,000 and $619,000 for the nine months ended September 30, 2018 and 2017, respectively, in connection with these agreements, which is included as a component of “fee and other income” on our consolidated statements of income. We also provide property management, asset management, leasing and other related services to our unconsolidated joint ventures and real estate funds. We recognized fee income of $3,235,000 and $4,616,000 for the three months ended September 30, 2018 and 2017, respectively, and $10,329,000 and $16,391,000 for the nine months ended September 30, 2018 and 2017, respectively, in connection with these agreements. As of September 30, 2018 and December 31, 2017, amounts owed to us under these agreements aggregated $1,700,000, and $1,627,000, respectively, and are included as a component of “accounts and other receivables, net” on our consolidated balance sheets. 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. We incurred expense of $69,000 and $50,000 for the three months ended September 30, 2018 and 2017, respectively, and $129,000 and $220,000 for the nine months ended September 30, 2018 and 2017, respectively, in connection with these agreements, which is included as a component of “transaction related costs” on our consolidated statements of income. As of September 30, 2018 and December 31, 2017, we owed $29,000 and $51,000, respectively, to HTC under these agreements, which are included as a component of “accounts payable and accrued expenses” on our consolidated balance sheets. 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, which is for the benefit of Dr. Bussmann’s children, leases 5,593 square feet, which expires in April 2023. Our share of rental income from this lease was $92,000 and $96,000, for the three months ended September 30, 2018 and 2017, respectively, and $273,000 and $274,000 for the nine months ended September 30, 2018 and 2017, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 2 3 . 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 September 30, 2018, 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 joint venture partner in 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 then 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 with the actual purchase occurring no earlier than 12 months after written notice is provided. If the put right is exercised and the 712 Fifth Avenue joint venture acquires the 50.0% tenancy-in-common interest in the property by our joint venture partner, we will own a 25.0% interest in 718 Fifth Avenue based on current ownership interests. Transfer Tax Assessments During 2017, the New York City Department of Finance issued Notices of Determination (“Notices”) assessing additional transfer taxes (including interest and penalties) in connection with the transfer of interests in certain properties during our 2014 initial public offering. Prior to February 16, 2018, we believed that the likelihood of a loss related to these assessments was remote. On February 16, 2018, the New York City Tax Appeals Tribunal issued a decision against a publicly traded REIT in a case interpreting the same provisions of the transfer tax statute, on similar but distinguishable facts. As a result, after consultation with legal counsel, we now believe the likelihood of loss is reasonably possible, and while it is not possible to predict the outcome of these Notices, we estimate the range of loss could be between $0 and $38,900,000. Since no amount in this range is a better estimate than any other amount within the range, we have not accrued any liability arising from potential losses relating to these Notices in our consolidated financial statements. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segments | 2 4 . Segments 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 Net Operating Income (“NOI”) for each reportable segment for the three and nine months ended September 30, 2018 and 2017. For the Three Months Ended September 30, 2018 (Amounts in thousands) Total New York Washington, D.C. San Francisco Other Property-related revenues $ 188,517 $ 118,539 $ 12,685 $ 57,568 $ (275 ) Property-related operating expenses (69,811 ) (48,257 ) (4,782 ) (15,206 ) (1,566 ) NOI from unconsolidated joint ventures 4,448 4,356 - - 92 NOI (1) $ 123,154 $ 74,638 $ 7,903 $ 42,362 $ (1,749 ) For the Three Months Ended September 30, 2017 (Amounts in thousands) Total New York Washington, D.C. San Francisco Other Property-related revenues $ 173,936 $ 109,493 $ 14,986 $ 49,758 $ (301 ) Property-related operating expenses (68,264 ) (46,609 ) (5,887 ) (14,164 ) (1,604 ) NOI from unconsolidated joint ventures 4,993 4,815 - - 178 NOI (1) $ 110,665 $ 67,699 $ 9,099 $ 35,594 $ (1,727 ) For the Nine Months Ended September 30, 2018 (Amounts in thousands) Total New York Washington, D.C. San Francisco Other Property-related revenues $ 555,333 $ 347,720 $ 43,569 $ 164,811 $ (767 ) Property-related operating expenses (206,435 ) (140,710 ) (16,363 ) (44,370 ) (4,992 ) NOI from unconsolidated joint ventures 13,757 13,514 - - 243 NOI (1) $ 362,655 $ 220,524 $ 27,206 $ 120,441 $ (5,516 ) For the Nine Months Ended September 30, 2017 (Amounts in thousands) Total New York Washington, D.C. San Francisco Other Property-related revenues $ 518,872 $ 321,419 $ 56,911 $ 139,898 $ 644 Property-related operating expenses (197,696 ) (134,657 ) (21,376 ) (35,889 ) (5,774 ) NOI from unconsolidated joint ventures 14,774 14,406 - - 368 NOI (1) $ 335,950 $ 201,168 $ 35,535 $ 104,009 $ (4,762 ) (1) 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 periods set forth below. For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2018 2017 2018 2017 NOI $ 123,154 $ 110,665 $ 362,655 $ 335,950 Add (subtract) adjustments to arrive to net income (loss): Fee income 4,079 5,834 12,953 19,838 Depreciation and amortization expense (64,610 ) (66,515 ) (194,541 ) (198,143 ) General and administrative expenses (14,452 ) (14,470 ) (44,278 ) (44,624 ) Transaction related costs (450 ) (274 ) (863 ) (1,051 ) NOI from unconsolidated joint ventures (4,448 ) (4,993 ) (13,757 ) (14,774 ) Income from unconsolidated joint ventures 472 671 2,931 19,143 Loss from unconsolidated real estate funds (188 ) (3,930 ) (268 ) (6,053 ) Interest and other income (loss), net 2,778 (17,668 ) 6,888 (11,982 ) Interest and debt expense (37,105 ) (35,733 ) (109,996 ) (107,568 ) Loss on early extinguishment of debt - - - (7,877 ) Real estate impairment loss - - (46,000 ) - Gain on sale of real estate 36,845 - 36,845 133,989 Unrealized gain on interest rate swaps - - - 1,802 Net income (loss) before income taxes 46,075 (26,413 ) 12,569 118,650 Income tax (expense) benefit (1,814 ) 1,010 (2,171 ) (4,242 ) Net income (loss) 44,261 (25,403 ) 10,398 114,408 Less: net (income) loss attributable to noncontrolling interests in: Consolidated joint ventures (2,713 ) 14,217 (5,520 ) 11,029 Consolidated real estate fund (86 ) (114 ) (668 ) (20,195 ) Operating Partnership (3,931 ) 1,086 (381 ) (12,068 ) Net income (loss) attributable to common stockholders $ 37,531 $ (10,214 ) $ 3,829 $ 93,174 The following table provides the total assets for each of our reportable segments as of the periods set forth below. (Amounts in thousands) Total Assets as of: Total New York Washington, D.C. San Francisco Other September 30, 2018 $ 8,941,237 $ 5,573,623 $ 444,154 $ 2,406,334 $ 517,126 December 31, 2017 8,917,661 5,511,061 693,408 2,421,173 292,019 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conjunction with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted. These consolidated financial statements include the accounts of Paramount and its consolidated subsidiaries, including the Operating Partnership. In the opinion of management, all significant adjustments (which include only normal recurring adjustments) and eliminations (which include intercompany balances and transactions) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. The consolidated balance sheet as of December 31, 2017 was derived from audited financial statements as of that date, but does not include all information and disclosures required by GAAP. These consolidated financial statements 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, 2017, as filed with the SEC. |
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, 2017. |
Use of Estimates | Use of Estimates 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 materially from those estimates. The results of operations for the three and nine months ended September 30, 2018, are not necessarily indicative of the operating results for the full year. |
Reclassification | Reclassification Certain prior year balances have been reclassified to conform to current year presentation. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Not Materially Impacting Our Financial Statements In May 2014, the Financial Accounting Standard’s Board (“FASB”) issued ASU 2014-09, an update to ASC Topic 606, Revenue from Contracts with Customers Revenues In June 2016, the FASB issued ASU 2016-13, an update to ASC Topic 326, Financial Instruments – Credit Losses In May 2017, the FASB issued ASU 2017-09, an update to ASC Topic 718, Compensation – Stock Compensation In August 2017, the FASB issued ASU 2017-12, an update to ASC Topic 815, Derivatives and Hedging. In August 2018, the FASB issued ASU 2018-13, an update to ASC Topic 820, Fair Value Measurements Recently Issued Accounting Pronouncements Impacting or Potentially Impacting Our Financial Statements In February 2016, the FASB issued ASU 2016-02, an update to ASC Topic 842, Leases While accounting for lessors under ASU 2016-02 is substantially similar to existing lease accounting guidance, lessors are required to separate payments received pursuant to a lease between lease components (rental income) and non-lease components (revenue related to various services we provide). In July 2018, the FASB issued ASU 2018-11, which provided lessors with a practical expedient to not separate lease and non-lease components, if certain criteria are met. We believe we meet such criteria and upon the adoption of ASU 2016-02, we plan to elect this practical expedient. Furthermore, ASU 2016-02 also updates the definition of initial direct costs for both lessees and lessors to include only incremental costs of a lease that would not have been incurred if the lease had not been obtained. As a result, upon adoption of ASU 2016-02 on January 1, 2019, we will no longer be able to capitalize internal leasing costs and will have to expense them instead. We had capitalized internal leasing costs of $1,169,000 and $1,491,000 for the three months ended September 30, 2018 and 2017, respectively, and $4,276,000 and $4,488,000, for the nine months ended September 30, 2018 and 2017, respectively. In November 2016, the FASB issued ASU 2016-18, an update to ASC Topic 230, Statement of Cash Flows In February 2017, the FASB issued ASU 2017-05, an update to ASC Topic 610, Other Income Investments in Unconsolidated Joint Ventures |
Investments in Unconsolidated_2
Investments in Unconsolidated Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 the dates thereof and the income or loss from these investments for the periods set forth below. (Amounts in thousands) Paramount As of Our Share of Investments: Ownership September 30, 2018 December 31, 2017 712 Fifth Avenue (1) 50.0% $ - $ - 60 Wall Street (2) 5.0% 23,121 25,083 One Steuart Lane (2) 25.0% (3) 48,530 (4) 16,031 Oder-Center, Germany (2) 9.5% 3,604 3,648 Investments in unconsolidated joint ventures $ 75,255 $ 44,762 For the Three Months Ended For the Nine Months Ended (Amounts in thousands) Paramount September 30, September 30, Our Share of Net Income (Loss): Ownership 2018 2017 2018 2017 712 Fifth Avenue (1) 50.0% $ 558 $ 596 $ 3,166 $ 19,030 60 Wall Street (2) 5.0% (116 ) (45 ) (291 ) (81 ) One Steuart Lane (2) 25.0% (3) - 100 (18 ) 133 Oder-Center, Germany (2) 9.5% 30 20 74 61 Income from unconsolidated joint ventures $ 472 $ 671 $ 2,931 $ 19,143 (1) As of September 30, 2018, our basis in the partnership was negative $20,256 resulting from distributions made to us in excess of our share of earnings recognized. Accordingly, we no longer recognize our proportionate share of earnings from the venture because we have no further obligation to fund additional capital to the venture. Instead, we only recognize earnings to the extent we receive cash distributions from the venture. (2) As of September 30, 2018, the carrying amount of our investments in 60 Wall Street, One Steuart Lane and Oder-Center is greater than our share of equity in these investments by $2,866, $692 and $5,036, respectively. (3) Represents RDF’s economic interest in the Property. (4) Includes a $7,086 basis adjustment which was recorded upon the adoption of ASU 2017-05 on January 1, 2018. |
712 Fifth Avenue [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Summary of Investments in Unconsolidated Joint Ventures | T he 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: September 30, 2018 December 31, 2017 Real estate, net $ 199,862 $ 202,040 Other assets 61,283 58,034 Total assets $ 261,145 $ 260,074 Notes and mortgages payable, net $ 296,440 $ 296,132 Other liabilities 5,217 4,615 Total liabilities 301,657 300,747 Partners’ deficit (40,512 ) (40,673 ) Total liabilities and partners’ deficit $ 261,145 $ 260,074 (Amounts in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, Income Statements: 2018 2017 2018 2017 Rental income $ 12,229 $ 12,626 $ 36,887 $ 38,284 Tenant reimbursement income 1,227 1,338 3,817 3,855 Fee and other income 125 507 742 1,101 Total revenues 13,581 14,471 41,446 43,240 Operating expenses 6,250 6,197 18,560 18,265 Depreciation and amortization 2,864 3,067 8,788 9,062 Total expenses 9,114 9,264 27,348 27,327 Operating income 4,467 5,207 14,098 15,913 Interest and other income, net 146 68 416 140 Interest and debt expense (2,701 ) (2,700 ) (8,020 ) (8,651 ) Unrealized gain on interest rate swaps - - - 1,896 Net income $ 1,912 $ 2,575 $ 6,494 $ 9,298 |
Investments in Unconsolidated_3
Investments in Unconsolidated Real Estate Funds (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 the dates thereof and the income or loss recognized for the periods set forth below. As of (Amounts in thousands) September 30, 2018 December 31, 2017 Our Share of Investments: Property funds $ 2,059 $ 2,429 Alternative investment fund 6,948 4,824 Investments in unconsolidated real estate funds $ 9,007 $ 7,253 For the Three Months Ended For the Nine Months Ended (Amounts in thousands) September 30, September 30, Our Share of Net Income (Loss): 2018 2017 2018 2017 Net investment income $ 82 $ 104 $ 207 $ 228 Net realized loss - (839 ) - (665 ) Net unrealized (loss) gain (270 ) 202 (475 ) (26 ) Carried interest - (3,397 ) - (5,590 ) Loss from unconsolidated real estate funds $ (188 ) $ (3,930 ) $ (268 ) $ (6,053 ) |
Schedule of Financial Information for Fund Investment | The following tables provide summarized financial information for Fund VII as of the dates and for the periods set forth below. As of (Amounts in thousands) September 30, 2018 December 31, 2017 Balance Sheets: Real estate investments $ 28,109 $ 32,943 Cash and cash equivalents 144 138 Total assets $ 28,253 $ 33,081 Other liabilities $ 1,171 $ 1,058 Total liabilities 1,171 1,058 Equity 27,082 32,023 Total liabilities and equity $ 28,253 $ 33,081 For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2018 2017 2018 2017 Income Statements: Investment income $ 4 $ 479 $ 9 $ 1,441 Investment expenses 43 120 163 1,156 Net investment (loss) income (39 ) 359 (154 ) 285 Net realized losses - (3,809 ) - (3,875 ) Net unrealized losses (3,880 ) (4,871 ) (6,897 ) (9,192 ) Loss from real estate fund investments $ (3,919 ) $ (8,321 ) $ (7,051 ) $ (12,782 ) |
Preferred Equity Investments (T
Preferred Equity Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule Of Investments [Abstract] | |
Schedule of Preferred Equity Investments | (Amounts in thousands, except square feet) Paramount Dividend Initial As of Preferred Equity Investment Ownership Rate Maturity September 30, 2018 December 31, 2017 470 Vanderbilt Avenue (1) 24.4% 10.3% Feb-2019 $ 35,983 $ 35,817 2 Herald Square (2) n/a n/a n/a - 19,588 35,983 55,405 Less: valuation allowance (2) - (19,588 ) Total preferred equity investments, net $ 35,983 $ 35,817 (1) Represents a preferred equity investment in a partnership that owns 470 Vanderbilt Avenue, a 686,000 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 preferred equity investment in a partnership that owned 2 Herald Square, a 369,000 square foot office and retail property in Manhattan. In April 2017, the borrower defaulted on the obligation to extend the maturity date or redeem the preferred equity investment and accordingly, we had recorded a valuation allowance of $19,588. In May 2018, the senior lender foreclosed out our interests and accordingly, we wrote off our preferred equity investment and the related valuation allowance. |
Intangible Assets and Liabili_2
Intangible Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets and Liabilities | The following table summarizes our intangible assets (acquired above-market leases and acquired in-place leases) and intangible liabilities (acquired below-market leases) and the related amortization as of the dates and for the periods set forth below. As of (Amounts in thousands) September 30, 2018 December 31, 2017 Intangible assets: Gross amount $ 518,207 $ 553,063 Accumulated amortization (230,985 ) (200,857 ) $ 287,222 $ 352,206 Intangible liabilities: Gross amount $ 186,550 $ 205,101 Accumulated amortization (84,271 ) (75,073 ) $ 102,279 $ 130,028 For the Three Months Ended For the Nine Months Ended September 30, September 30, (Amounts in thousands) 2018 2017 2018 2017 Amortization of above and below-market leases, net (component of “rental income”) $ 3,887 $ 3,175 $ 12,611 $ 14,164 Amortization of acquired in-place leases (component of “depreciation and amortization”) $ 14,865 $ 17,929 $ 44,879 $ 58,352 |
Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases and In Place Leases | The table below sets forth annual amortization of acquired above and below-market leases, net and amortization of acquired in-place leases for each of the five succeeding years commencing from January 1, 2019. (Amounts in thousands) For the Year Ending December 31, Above and Below-Market Leases, Net In-Place Leases 2019 $ 11,851 $ 49,378 2020 6,654 38,738 2021 3,361 28,150 2022 892 23,598 2023 4,407 18,917 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 September 30, 2018 December 31, 2017 Notes and mortgages payable: 1633 Broadway Dec-2022 Fixed (1) 3.54 % $ 1,000,000 $ 1,000,000 Dec-2022 L + 175 bps 3.85 % 46,800 (2) 30,100 (2) 3.55 % 1,046,800 1,030,100 One Market Plaza (3) Feb-2024 Fixed 4.03 % 975,000 975,000 1301 Avenue of the Americas Nov-2021 Fixed 3.05 % 500,000 500,000 Nov-2021 L + 180 bps 3.93 % 350,000 350,000 3.41 % 850,000 850,000 31 West 52nd Street May-2026 Fixed 3.80 % 500,000 500,000 50 Beale Street (3) Oct-2021 Fixed 3.65 % 228,000 228,000 Total notes and mortgages payable 3.69 % 3,599,800 3,583,100 Less: deferred financing costs (35,112 ) (41,800 ) Total notes and mortgages payable, net $ 3,564,688 $ 3,541,300 $1.0 Billion Revolving Credit Facility Jan-2022 L + 115 bps n/a $ - $ - (1) Represents loans with variable interest rates that have been fixed by interest rate swaps. See Note 10, Derivative Instruments and Hedging Activities (2) Represents amounts borrowed to fund leasing costs at the property. The loan balance can be increased by an additional $200,000 upon the satisfaction of certain performance hurdles related to the property. (3) Our ownership interest in One Market Plaza and 50 Beale Street is 49.0% and 31.1%, respectively. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Interest Rate Swaps | The table below summarizes the fair value of our interest rate swaps that are designated as cash flow hedges. Fair Value as of (Amounts in thousands) September 30, 2018 December 31, 2017 Interest rate swap assets designated as cash flow hedges (included in “other assets”) $ 33,276 $ 9,855 Interest rate swap liabilities designated as cash flow hedges (included in “other liabilities”) $ - $ 317 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component | The following table sets forth changes in accumulated other comprehensive income (loss) by component for the three and nine months ended September 30, 2018 and 2017, including amounts attributable to noncontrolling interests in the Operating Partnership. For the Three Months Ended For the Nine Months Ended September 30, September 30, (Amounts in thousands) 2018 2017 2018 2017 Amount of income (loss) related to the effective portion of cash flow hedges recognized in other comprehensive income $ 4,161 $ (697 ) $ 24,363 $ (5,226 ) Amounts reclassified from accumulated other comprehensive income (decreasing) increasing interest and debt expense (769 ) 1,435 (625 ) 5,955 Amount of (loss) income related to unconsolidated joint ventures recognized in other comprehensive income (loss) (1) (262 ) 226 (105 ) 39 Amount of gain (loss) related to the ineffective portion of cash flow hedges and amount excluded from effectiveness testing - - - - (1) |
Variable Interest Entities (__2
Variable Interest Entities (“VIEs”) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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) September 30, 2018 December 31, 2017 Real estate, net $ 1,704,019 $ 1,726,800 Cash and restricted cash 78,563 55,658 Investments in unconsolidated joint ventures 48,530 16,031 Preferred equity investments, net 35,983 35,817 Accounts and other receivables, net 1,571 2,550 Deferred rent receivable 50,053 44,000 Deferred charges, net 12,945 8,123 Intangible assets, net 50,822 66,112 Other assets 17,255 929 Total VIE assets $ 1,999,741 $ 1,956,020 Notes and mortgages payable, net $ 1,197,385 $ 1,196,607 Accounts payable and accrued expenses 29,237 21,211 Intangible liabilities, net 35,124 46,365 Other liabilities 5 155 Total VIE liabilities $ 1,261,751 $ 1,264,338 |
Unconsolidated VIEs [Member] | |
Summary of Investments in Unconsolidated Real Estate Funds and Maximum Risk of Loss from Investments | The table below summarizes our investments in these unconsolidated real estate funds and the maximum risk of loss from these investments. As of (Amounts in thousands) September 30, 2018 December 31, 2017 Investments $ 9,007 $ 7,253 Asset management fees and other receivables 681 597 Maximum risk of loss $ 9,688 $ 7,850 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 the dates set forth below, based on their levels in the fair value hierarchy. As of September 30, 2018 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 26,668 $ 26,668 $ - $ - Interest rate swap assets (included in “other assets”) 33,276 - 33,276 - Total assets $ 59,944 $ 26,668 $ 33,276 $ - As of December 31, 2017 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 29,039 $ 29,039 $ - $ - Interest rate swap assets (included in “other assets”) 9,855 - 9,855 - Total assets $ 38,894 $ 29,039 $ 9,855 $ - Interest rate swap liabilities (included in “other liabilities”) $ 317 $ - $ 317 $ - Total liabilities $ 317 $ - $ 317 $ - |
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 the dates set forth below. As of September 30, 2018 As of December 31, 2017 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Preferred equity investments, net $ 35,983 $ 36,270 $ 35,817 $ 36,112 Total assets $ 35,983 $ 36,270 $ 35,817 $ 36,112 Notes and mortgages payable $ 3,599,800 $ 3,572,687 $ 3,583,100 $ 3,596,953 Revolving credit facility - - - - Total liabilities $ 3,599,800 $ 3,572,687 $ 3,583,100 $ 3,596,953 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disaggregation Of Revenue [Abstract] | |
Summary of Revenues | The following table sets forth the details of our revenues. For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2018 2017 2018 2017 Rental income $ 167,934 $ 156,384 $ 500,868 $ 469,961 Tenant reimbursement income 15,579 14,053 42,989 38,761 Fee and other income: Fee income: Property management 1,476 1,673 4,468 4,815 Asset management 2,222 1,997 5,655 6,622 Acquisition, disposition and leasing - 1,475 1,750 7,045 Other 381 689 1,080 1,356 Total fee income 4,079 5,834 12,953 19,838 Lease termination income 1,561 954 1,618 1,915 Other income (1) 3,443 2,545 9,858 8,235 Total fee and other income 9,083 9,333 24,429 29,988 Total revenues $ 192,596 $ 179,770 $ 568,286 $ 538,710 (1) Primarily comprised of (i) tenant requested services, including overtime heating and cooling and (ii) parking income. |
Summary of Amount Receivable from Customers under Various Fee Agreement | The table below sets forth the amounts receivable from our customers under our various fee agreements and are included as a component of “accounts and other receivables” on our consolidated balance sheets. Acquisition Property Asset Disposition (Amounts in thousands) Total Management Management and Leasing Other Accounts and other receivables: Balance as of December 31, 2017 $ 1,558 $ 290 $ 762 $ 490 $ 16 Balance as of September 30, 2018 1,882 472 894 490 26 Increase $ 324 $ 182 $ 132 $ - $ 10 |
Interest and Other Income (Lo_2
Interest and Other Income (Loss), net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Interest And Other Income [Abstract] | |
Schedule Of Interest And Other Income (Loss), net | The following table sets forth the details of interest and other income (loss). For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2018 2017 2018 2017 Preferred equity investment income (1) $ 930 $ 961 $ 2,746 $ 3,327 Interest and other income 858 147 2,862 743 Mark-to-market of investments in our deferred compensation plans (2) 990 812 1,280 3,536 Valuation allowance on preferred equity investment (3) - (19,588 ) - (19,588 ) Total interest and other income (loss), net $ 2,778 $ (17,668 ) $ 6,888 $ (11,982 ) (1) Represents income from our preferred equity investments in PGRESS Equity Holdings L.P., of which our 24.4% share is $227 and $243 for the three months ended September 30, 2018 and 2017, respectively, and $669 and $819 for the nine months ended September 30, 2018 and 2017, respectively. See Note 7, 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 deferred compensation plan liabilities, which is included as a component of “general and administrative” expenses on our consolidated statements of income. (3) Represents the valuation allowance on 2 Herald Square, our preferred equity investment in PGRESS Equity Holdings L.P., of which our 24.4% share was $4,780, and $14,808 was attributable to noncontrolling interests. In May 2018, the senior lender foreclosed out our interests and accordingly, we wrote off our preferred equity investment. |
Interest and Debt Expense (Tabl
Interest and Debt Expense (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2018 2017 2018 2017 Interest expense $ 34,353 $ 32,914 $ 101,729 $ 99,201 Amortization of deferred financing costs 2,752 2,819 8,267 8,367 Total interest and debt expense $ 37,105 $ 35,733 $ 109,996 $ 107,568 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Earnings Per Share | The following table provides a summary of net income 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 For the Nine Months Ended September 30, September 30, (Amounts in thousands, except per share amounts) 2018 2017 2018 2017 Numerator: Net income (loss) attributable to common stockholders $ 37,531 $ (10,214 ) $ 3,829 $ 93,174 Earnings allocated to unvested participating securities (27 ) (13 ) (63 ) (86 ) Numerator for income (loss) per common share - basic and diluted $ 37,504 $ (10,227 ) $ 3,766 $ 93,088 Denominator: Denominator for basic income (loss) per common share - weighted average shares 240,448 239,446 240,366 235,151 Effect of dilutive stock-based compensation plans (1) 41 - 25 27 Denominator for diluted income (loss) per common share - weighted average shares 240,489 239,446 240,391 235,178 Income (loss) per common share - basic and diluted $ 0.16 $ (0.04 ) $ 0.02 $ 0.40 (1) The effect of dilutive securities excludes 27,322 and 27,911 weighted average share equivalents for the three months ended September 30, 2018 and 2017, respectively, and 26,452 and 32,036 weighted average share equivalents for the nine months ended September 30, 2018 and 2017, respectively, as their effect was anti-dilutive. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of NOI for Each Reportable Segment Information | The following tables provide Net Operating Income (“NOI”) for each reportable segment for the three and nine months ended September 30, 2018 and 2017. For the Three Months Ended September 30, 2018 (Amounts in thousands) Total New York Washington, D.C. San Francisco Other Property-related revenues $ 188,517 $ 118,539 $ 12,685 $ 57,568 $ (275 ) Property-related operating expenses (69,811 ) (48,257 ) (4,782 ) (15,206 ) (1,566 ) NOI from unconsolidated joint ventures 4,448 4,356 - - 92 NOI (1) $ 123,154 $ 74,638 $ 7,903 $ 42,362 $ (1,749 ) For the Three Months Ended September 30, 2017 (Amounts in thousands) Total New York Washington, D.C. San Francisco Other Property-related revenues $ 173,936 $ 109,493 $ 14,986 $ 49,758 $ (301 ) Property-related operating expenses (68,264 ) (46,609 ) (5,887 ) (14,164 ) (1,604 ) NOI from unconsolidated joint ventures 4,993 4,815 - - 178 NOI (1) $ 110,665 $ 67,699 $ 9,099 $ 35,594 $ (1,727 ) For the Nine Months Ended September 30, 2018 (Amounts in thousands) Total New York Washington, D.C. San Francisco Other Property-related revenues $ 555,333 $ 347,720 $ 43,569 $ 164,811 $ (767 ) Property-related operating expenses (206,435 ) (140,710 ) (16,363 ) (44,370 ) (4,992 ) NOI from unconsolidated joint ventures 13,757 13,514 - - 243 NOI (1) $ 362,655 $ 220,524 $ 27,206 $ 120,441 $ (5,516 ) For the Nine Months Ended September 30, 2017 (Amounts in thousands) Total New York Washington, D.C. San Francisco Other Property-related revenues $ 518,872 $ 321,419 $ 56,911 $ 139,898 $ 644 Property-related operating expenses (197,696 ) (134,657 ) (21,376 ) (35,889 ) (5,774 ) NOI from unconsolidated joint ventures 14,774 14,406 - - 368 NOI (1) $ 335,950 $ 201,168 $ 35,535 $ 104,009 $ (4,762 ) (1) 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 periods set forth below. For the Three Months Ended September 30, For the Nine Months Ended September 30, (Amounts in thousands) 2018 2017 2018 2017 NOI $ 123,154 $ 110,665 $ 362,655 $ 335,950 Add (subtract) adjustments to arrive to net income (loss): Fee income 4,079 5,834 12,953 19,838 Depreciation and amortization expense (64,610 ) (66,515 ) (194,541 ) (198,143 ) General and administrative expenses (14,452 ) (14,470 ) (44,278 ) (44,624 ) Transaction related costs (450 ) (274 ) (863 ) (1,051 ) NOI from unconsolidated joint ventures (4,448 ) (4,993 ) (13,757 ) (14,774 ) Income from unconsolidated joint ventures 472 671 2,931 19,143 Loss from unconsolidated real estate funds (188 ) (3,930 ) (268 ) (6,053 ) Interest and other income (loss), net 2,778 (17,668 ) 6,888 (11,982 ) Interest and debt expense (37,105 ) (35,733 ) (109,996 ) (107,568 ) Loss on early extinguishment of debt - - - (7,877 ) Real estate impairment loss - - (46,000 ) - Gain on sale of real estate 36,845 - 36,845 133,989 Unrealized gain on interest rate swaps - - - 1,802 Net income (loss) before income taxes 46,075 (26,413 ) 12,569 118,650 Income tax (expense) benefit (1,814 ) 1,010 (2,171 ) (4,242 ) Net income (loss) 44,261 (25,403 ) 10,398 114,408 Less: net (income) loss attributable to noncontrolling interests in: Consolidated joint ventures (2,713 ) 14,217 (5,520 ) 11,029 Consolidated real estate fund (86 ) (114 ) (668 ) (20,195 ) Operating Partnership (3,931 ) 1,086 (381 ) (12,068 ) Net income (loss) attributable to common stockholders $ 37,531 $ (10,214 ) $ 3,829 $ 93,174 |
Schedule of Total Assets for Each Reportable Segments Information | The following table provides the total assets for each of our reportable segments as of the periods set forth below. (Amounts in thousands) Total Assets as of: Total New York Washington, D.C. San Francisco Other September 30, 2018 $ 8,941,237 $ 5,573,623 $ 444,154 $ 2,406,334 $ 517,126 December 31, 2017 8,917,661 5,511,061 693,408 2,421,173 292,019 |
Organization and Business - Add
Organization and Business - Additional Information (Details) ft² in Millions | 9 Months Ended |
Sep. 30, 2018ft²Properties | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of office properties | Properties | 12 |
Area of office and retail properties | ft² | 11.9 |
Percentage of ownership in operating partnership | 90.50% |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) - USD ($) | Jan. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Property Plant And Equipment [Line Items] | |||||
Capitalized internal leasing costs | $ 1,169,000 | $ 1,491,000 | $ 4,276,000 | $ 4,488,000 | |
Decrease in cash provided by used in operating activities continuing operations | 134,168,000 | 102,071,000 | |||
Increase in cash provided by used in investing activities continuing operations | 223,127,000 | 321,789,000 | |||
Adjustment to investments in unconsolidated joint ventures | $ 7,086,000 | ||||
ASU 2016-18 [Member] | |||||
Property Plant And Equipment [Line Items] | |||||
Decrease in cash provided by used in operating activities continuing operations | (3,000,000) | ||||
Increase in cash provided by used in investing activities continuing operations | $ 5,946,000 | ||||
ASU 2017-05 [Member] | RDF [Member] | One Steuart Lane [Member] | |||||
Property Plant And Equipment [Line Items] | |||||
Adjustment to investments in unconsolidated joint ventures | $ 7,086,000 |
Dispositions - Additional Infor
Dispositions - Additional Information (Details) | Sep. 27, 2018USD ($)ft² | Aug. 09, 2018USD ($)ft² | May 03, 2017USD ($)ft² | Sep. 30, 2018ft² |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Area of office and retail properties | ft² | 11,900,000 | |||
2099 Pennsylvania Avenue [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Area of office and retail properties | ft² | 208,776 | |||
Sale agreement amount | $ 219,900,000 | |||
Gain on sale of property | $ 35,836,000 | |||
425 Eye Street [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Area of office and retail properties | ft² | 372,552 | |||
Sale agreement amount | $ 157,000,000 | |||
Gain on sale of property | $ 1,009,000 | |||
Waterview [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Area of office and retail properties | ft² | 636,768 | |||
Sale agreement amount | $ 460,000,000 | |||
Gain on sale of property | $ 110,583,000 |
Acquisitions- Additional Inform
Acquisitions- Additional Information (Details) | Sep. 30, 2018ft² | Jul. 17, 2017USD ($)ft² |
Business Acquisition [Line Items] | ||
Area of office and retail properties | ft² | 11,900,000 | |
50 Beale Street [Member] | ||
Business Acquisition [Line Items] | ||
Percentage of ownership interest in new joint venture | 36.60% | |
Percentage of interest acquired | 62.20% | |
Area of office and retail properties | ft² | 660,625 | |
Percentage of interest directly acquired in property | 13.20% | |
Percentage of remaining interest acquired in property by new joint venture. | 49.00% | |
Property funds, ownership percentage | 31.10% | |
Property funds, ownership amount | $ | $ 517,500,000 | |
Value of debt assumed with acquisition | $ | $ 228,000,000 |
Investments in Unconsolidated_4
Investments in Unconsolidated Joint Ventures - Additional Information (Details) | Mar. 14, 2018 | Sep. 30, 2018 | Mar. 13, 2018 |
RDF [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Ownership percentage in residential fund | 7.40% | ||
Percentage of interest third party ownership | 92.60% | ||
One Steuart Lane [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 25.00% | ||
Property funds, ownership percentage | 1.85% | ||
One Steuart Lane [Member] | RDF [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of interest acquired | 10.00% | ||
Indirect interest percentage | 15.00% | ||
Property funds, ownership percentage | 25.00% | ||
New Joint Venture [Member] | RDF [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 20.00% | ||
Percentage of interest owned | 75.00% | 75.00% | |
Percentage of interest owned by third party | 25.00% | ||
New Joint Venture [Member] | One Steuart Lane [Member] | RDF [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of interest transferred to new joint venture | 20.00% | ||
Property funds, ownership percentage | 20.00% | ||
Property funds, ownership percentage | 5.00% |
Investments in Unconsolidated_5
Investments in Unconsolidated Joint Ventures - Summary of Investments and Income from Investments In Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Investments in unconsolidated joint ventures | $ 75,255 | $ 75,255 | $ 44,762 | ||
Income from unconsolidated joint ventures | $ 472 | $ 671 | $ 2,931 | $ 19,143 | |
712 Fifth Avenue [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 50.00% | 50.00% | |||
Income from unconsolidated joint ventures | $ 558 | 596 | $ 3,166 | 19,030 | |
60 Wall Street [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 5.00% | 5.00% | |||
Investments in unconsolidated joint ventures | $ 23,121 | $ 23,121 | 25,083 | ||
Income from unconsolidated joint ventures | $ (116) | (45) | $ (291) | (81) | |
One Steuart Lane [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 25.00% | 25.00% | |||
Investments in unconsolidated joint ventures | $ 48,530 | $ 48,530 | 16,031 | ||
Income from unconsolidated joint ventures | 100 | $ (18) | 133 | ||
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 | $ 3,604 | $ 3,604 | $ 3,648 | ||
Income from unconsolidated joint ventures | $ 30 | $ 20 | $ 74 | $ 61 |
Investments in Unconsolidated_6
Investments in Unconsolidated Joint Ventures - Summary of Investments and Income from Investments In Unconsolidated Joint Ventures (Parenthetical) (Details) - USD ($) | Jan. 01, 2018 | Sep. 30, 2018 |
Schedule Of Equity Method Investments [Line Items] | ||
Distributions made in excess of share of earnings recognized negative basis | $ 20,256 | |
Adjustment to investments in unconsolidated joint ventures | 7,086,000 | |
60 Wall Street [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Difference between carrying amount of investment and equity | 2,866,000 | |
One Steuart Lane [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Difference between carrying amount of investment and equity | 692,000 | |
One Steuart Lane [Member] | ASU 2017-05 [Member] | RDF [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Adjustment to investments in unconsolidated joint ventures | $ 7,086,000 | |
Oder-Center, Germany [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Difference between carrying amount of investment and equity | $ 5,036,000 |
Investments in Unconsolidated_7
Investments in Unconsolidated Joint Ventures - Summary of Financial Information (Details) - 712 Fifth Avenue [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Real estate, net | $ 199,862 | $ 199,862 | $ 202,040 | ||
Other assets | 61,283 | 61,283 | 58,034 | ||
Total assets | 261,145 | 261,145 | 260,074 | ||
Notes and mortgages payable, net | 296,440 | 296,440 | 296,132 | ||
Other liabilities | 5,217 | 5,217 | 4,615 | ||
Total liabilities | 301,657 | 301,657 | 300,747 | ||
Partners’ deficit | (40,512) | (40,512) | (40,673) | ||
Total liabilities and partners’ deficit | 261,145 | 261,145 | $ 260,074 | ||
Rental income | 12,229 | $ 12,626 | 36,887 | $ 38,284 | |
Tenant reimbursement income | 1,227 | 1,338 | 3,817 | 3,855 | |
Fee and other income | 125 | 507 | 742 | 1,101 | |
Total revenues | 13,581 | 14,471 | 41,446 | 43,240 | |
Operating expenses | 6,250 | 6,197 | 18,560 | 18,265 | |
Depreciation and amortization | 2,864 | 3,067 | 8,788 | 9,062 | |
Total expenses | 9,114 | 9,264 | 27,348 | 27,327 | |
Operating income | 4,467 | 5,207 | 14,098 | 15,913 | |
Interest and other income, net | 146 | 68 | 416 | 140 | |
Interest and debt expense | (2,701) | (2,700) | (8,020) | (8,651) | |
Unrealized gain on interest rate swaps | 1,896 | ||||
Net income | $ 1,912 | $ 2,575 | $ 6,494 | $ 9,298 |
Investments in Unconsolidated_8
Investments in Unconsolidated Real Estate Funds - Additional Information (Details) | Sep. 30, 2018 |
Fund VII and VII-H [Member] | Zero Bond Street [Member] | |
Investment Holdings [Line Items] | |
Property funds, percentage | 100.00% |
Investments in Unconsolidated_9
Investments in Unconsolidated Real Estate Funds - Summary of Investment in Unconsolidated Real Estate Funds and Income or Loss from Fund Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Our Share of Investments: | |||||
Investments in unconsolidated real estate funds | $ 9,007 | $ 9,007 | $ 7,253 | ||
(Loss) income from unconsolidated real estate funds | (188) | $ (3,930) | (268) | $ (6,053) | |
Net realized loss | (839) | (665) | |||
Net unrealized (loss) gain | (270) | 202 | (475) | (26) | |
Net investment income [Member] | |||||
Our Share of Investments: | |||||
(Loss) income from unconsolidated real estate funds | 82 | 104 | 207 | 228 | |
Carried interest [Member] | |||||
Our Share of Investments: | |||||
(Loss) income from unconsolidated real estate funds | $ (3,397) | $ (5,590) | |||
Property Funds [Member] | |||||
Our Share of Investments: | |||||
Investments in unconsolidated real estate funds | 2,059 | 2,059 | 2,429 | ||
Alternative Investment Fund [Member] | |||||
Our Share of Investments: | |||||
Investments in unconsolidated real estate funds | $ 6,948 | $ 6,948 | $ 4,824 |
Investments in Unconsolidate_10
Investments in Unconsolidated Real Estate Funds - Schedule of Financial Information for Fund Investment (Details) - Unconsolidated Real Estate Funds [Member] - Property Fund VII [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investment Holdings [Line Items] | ||
Real estate investments | $ 28,109 | $ 32,943 |
Cash and cash equivalents | 144 | 138 |
Total assets | 28,253 | 33,081 |
Other liabilities | 1,171 | 1,058 |
Total liabilities | 1,171 | 1,058 |
Equity | 27,082 | 32,023 |
Total liabilities and partners’ deficit | $ 28,253 | $ 33,081 |
Investments in Unconsolidate_11
Investments in Unconsolidated Real Estate Funds - Schedule of Income from Fund Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investment Holdings [Line Items] | ||||
Net realized losses | $ (839) | $ (665) | ||
Net unrealized losses | $ (270) | 202 | $ (475) | (26) |
Unconsolidated Real Estate Funds [Member] | Property Fund VII [Member] | ||||
Investment Holdings [Line Items] | ||||
Investment income | 4 | 479 | 9 | 1,441 |
Investment expenses | 43 | 120 | 163 | 1,156 |
Net investment (loss) income | (39) | 359 | (154) | 285 |
Net realized losses | (3,809) | (3,875) | ||
Net unrealized losses | (3,880) | (4,871) | (6,897) | (9,192) |
Loss from real estate fund investments | $ (3,919) | $ (8,321) | $ (7,051) | $ (12,782) |
Preferred Equity Investments -
Preferred Equity Investments - Additional Information (Details) | Sep. 30, 2018 |
Schedule Of Investments [Abstract] | |
Preferred equity ownership percentage | 24.40% |
Preferred Equity Investments (D
Preferred Equity Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Apr. 30, 2017 | |
Investment Holdings [Line Items] | |||
Preferred equity ownership percentage | 24.40% | ||
Preferred equity investments, gross | $ 35,983 | $ 55,405 | |
Less: valuation allowance | 0 | (19,588) | |
Total preferred equity investments, net | $ 35,983 | 35,817 | |
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, gross | $ 35,983 | 35,817 | |
2 Herald Square [Member] | |||
Investment Holdings [Line Items] | |||
Preferred equity investments, gross | $ 19,588 | ||
Less: valuation allowance | $ (19,588) |
Preferred Equity Investments _2
Preferred Equity Investments - Parenthetical (Details) ft² in Thousands, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018USD ($)ft² | Dec. 31, 2017USD ($) | Apr. 30, 2017USD ($) | |
Schedule Of Investments [Line Items] | |||
Area of office properties | 11,900 | ||
Valuation allowance on preferred equity investment | $ | $ 0 | $ 19,588 | |
470 Vanderbilt Avenue [Member] | |||
Schedule Of Investments [Line Items] | |||
Area of office properties | 686 | ||
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] | |||
Area of office properties | 369 | ||
Valuation allowance on preferred equity investment | $ | $ 19,588 |
Intangible Assets and Intangibl
Intangible Assets and Intangible Liabilities - Summary of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Intangible assets: | |||||
Gross amount | $ 518,207 | $ 518,207 | $ 553,063 | ||
Accumulated amortization | (230,985) | (230,985) | (200,857) | ||
Intangible assets, Net | 287,222 | 287,222 | 352,206 | ||
Intangible liabilities: | |||||
Gross amount | 186,550 | 186,550 | 205,101 | ||
Accumulated amortization | (84,271) | (84,271) | (75,073) | ||
Intangible Liabilities, Net | 102,279 | 102,279 | $ 130,028 | ||
Leases, Acquired-in-Place, Market Adjustment [Member] | |||||
Intangible liabilities: | |||||
Amortization of above and below-market leases, net (component of “rental income”) | 3,887 | $ 3,175 | 12,611 | $ 14,164 | |
Leases, Acquired-in-Place [Member] | |||||
Intangible liabilities: | |||||
Amortization of acquired in-place leases (component of “depreciation and amortization”) | $ 14,865 | $ 17,929 | $ 44,879 | $ 58,352 |
Intangible Assets and Intangi_2
Intangible Assets and Intangible Liabilities - Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases and In Place Leases (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2,019 | $ 11,851 |
2,020 | 6,654 |
2,021 | 3,361 |
2,022 | 892 |
2,023 | 4,407 |
Leases, Acquired-in-Place [Member] | |
Finite Lived Intangible Assets [Line Items] | |
2,019 | 49,378 |
2,020 | 38,738 |
2,021 | 28,150 |
2,022 | 23,598 |
2,023 | $ 18,917 |
Debt - Additional Information (
Debt - Additional Information (Details) - Revolving Credit Facility [Member] - USD ($) | Jan. 10, 2018 | Jan. 09, 2018 |
Debt Instrument [Line Items] | ||
Maturity date of debt | 2022-01 | 2018-11 |
Borrowing capacity | $ 1,000,000,000 | $ 800,000,000 |
Decrease in facility fees | 0.05% | |
Facility fees percentage | 0.20% | 0.25% |
London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Decrease in variable rate | 0.10% | |
Debt instrument variable rate | 1.15% | 1.25% |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Details) - USD ($) $ in Thousands | Jan. 10, 2018 | Jan. 09, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Notes and mortgages payable, Interest Rate | 3.69% | |||
Notes and mortgages payable | $ 3,599,800 | $ 3,583,100 | ||
Credit Facility | 0 | 0 | ||
Less: deferred financing costs | (35,112) | (41,800) | ||
Total notes and mortgages payable, net | $ 3,564,688 | 3,541,300 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date of debt | 2022-01 | 2018-11 | ||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Fixed/Variable Rate | 1.15% | 1.25% | ||
Credit Facility With Variable Rate [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date of debt | 2022-01 | |||
Credit Facility With Variable Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Fixed/Variable Rate | 1.15% | |||
1633 Broadway [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes and mortgages payable, Interest Rate | 3.55% | |||
Notes and mortgages payable | $ 1,046,800 | 1,030,100 | ||
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 | 3.85% | |||
Notes and mortgages payable | $ 46,800 | 30,100 | ||
1633 Broadway [Member] | Mortgages and Notes Payable with Variable Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Fixed/Variable Rate | 1.75% | |||
One Market Plaza [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date of debt | 2024-02 | |||
Notes and mortgages payable, Interest Rate | 4.03% | |||
Notes and mortgages payable | $ 975,000 | 975,000 | ||
1301 Avenue of Americas [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes and mortgages payable, Interest Rate | 3.41% | |||
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 | 3.93% | |||
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) [Member] | ||||
Debt Instrument [Line Items] | ||||
Fixed/Variable Rate | 1.80% | |||
50 Beale Street [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date of debt | 2021-10 | |||
Notes and mortgages payable, Interest Rate | 3.65% | |||
Notes and mortgages payable | $ 228,000 | 228,000 | ||
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 |
Debt - Summary of Outstanding_2
Debt - Summary of Outstanding Debt (Parenthetical) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
1633 Broadway [Member] | Mortgages and Notes Payable with Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Additional Borrowing Capacity Subject To Performance Hurdles | $ 200,000,000 | |
One Market Plaza [Member] | ||
Debt Instrument [Line Items] | ||
Ownership interest rate of property | 49.00% | 49.00% |
50 Beale Street [Member] | ||
Debt Instrument [Line Items] | ||
Ownership interest rate of property | 31.10% | 31.10% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 19, 2017USD ($) | Sep. 30, 2018USD ($)Derivative | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Derivative | Sep. 30, 2017USD ($) | |
Derivative [Line Items] | |||||
Change in value of interest rate swaps | $ 4,161,000 | $ (697,000) | $ 24,363,000 | $ (5,226,000) | |
Number of derivative instruments | Derivative | 0 | 0 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | |||||
Derivative [Line Items] | |||||
Change in value of interest rate swaps | $ 3,392,000 | $ 738,000 | $ 23,738,000 | $ 729,000 | |
Estimated accumulated other comprehensive income (loss) reclassified to interest expense in the next twelve months | 8,223,000 | ||||
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 | 1,000,000,000 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap March Two Thousand Eighteen [Member] | 1633 Broadway [Member] | Cash Flow Hedges [Member] | |||||
Derivative [Line Items] | |||||
Aggregate notional amount | $ 400,000,000 | $ 400,000,000 | |||
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gains on interest rate swaps | $ 1,802,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Summary of Fair Value of Interest Rate Swaps (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Interest rate swap assets | $ 33,276 | $ 9,855 |
Interest rate swap liabilities | 317 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Interest rate swap assets | $ 33,276 | 9,855 |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Interest rate swap liabilities | $ 317 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | Oct. 31, 2018 | Sep. 30, 2018 | Nov. 01, 2018 | Aug. 01, 2017 |
Class Of Stock [Line Items] | ||||
Stock repurchased during period, Share | 236,674 | |||
Stock repurchased during period, value | $ 3,569,000 | |||
Weighted average price | $ 15.08 | |||
Subsequent Event [Member] | ||||
Class Of Stock [Line Items] | ||||
Stock repurchased during period, Share | 3,443,000 | |||
Stock repurchased during period, value | $ 50,000,000 | |||
Weighted average price | $ 14.53 | |||
Stock repurchase amount available for future repurchase | $ 150,000,000 | |||
Maximum [Member] | ||||
Class Of Stock [Line Items] | ||||
Common stock shares authorized amount | $ 200,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||||
Amount of income (loss) related to the effective portion of cash flow hedges recognized in other comprehensive income | $ 4,161 | $ (697) | $ 24,363 | $ (5,226) | |
Amounts reclassified from accumulated other comprehensive income (decreasing) increasing interest and debt expense | (769) | 1,435 | (625) | 5,955 | |
Amount of (loss) income related to unconsolidated joint ventures recognized in other comprehensive income (loss) | [1] | $ (262) | $ 226 | $ (105) | $ 39 |
[1] | Represents foreign currency translation adjustments. No amounts were reclassified from accumulated other comprehensive income during any of the periods set forth above. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Parenthetical) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||||
Amounts reclassified from accumulated other comprehensive income | $ 0 | $ 0 | $ 0 | $ 0 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | ||
Consolidated joint ventures | $ 399,934 | $ 404,997 |
Noncontrolling interests in consolidated real estate fund aggregated | 66,099 | 14,549 |
Operating partnerships | 429,986 | 425,797 |
Redemption value | $ 379,166 | $ 390,231 |
Common units conversion basis | one-for-one |
Variable Interest Entities ("VI
Variable Interest Entities ("VIEs") - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entities [Abstract] | |
Percentage of ownership in operating partnership | 90.50% |
Variable Interest Entities ("_2
Variable Interest Entities ("VIEs") - Summary of Assets and Liabilities of Consolidated Variable Interest Entities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||||
Real estate, net | $ 7,465,255 | $ 7,841,530 | |||
Cash and restricted cash | 30,902 | 31,044 | $ 32,320 | $ 29,374 | |
Preferred equity investments, net | 35,983 | 35,817 | |||
Accounts and other receivables, net | 16,205 | 17,082 | |||
Deferred rent receivable | 254,002 | 220,826 | |||
Deferred charges, net | 111,870 | 98,645 | |||
Intangible assets, net | 287,222 | 352,206 | |||
Other assets | 90,143 | 20,076 | |||
Total assets | [1] | 8,941,237 | 8,917,661 | ||
Notes and mortgages payable, net | 3,599,800 | 3,583,100 | |||
Accounts payable and accrued expenses | 133,995 | 117,630 | |||
Intangible liabilities, net | 102,279 | 130,028 | |||
Other liabilities | 56,968 | 54,109 | |||
Total liabilities | [1] | 3,911,825 | 3,895,577 | ||
Variable Interest Entities [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Real estate, net | 1,704,019 | 1,726,800 | |||
Cash and restricted cash | 78,563 | 55,658 | |||
Investments in unconsolidated joint ventures | 48,530 | 16,031 | |||
Preferred equity investments, net | 35,983 | 35,817 | |||
Accounts and other receivables, net | 1,571 | 2,550 | |||
Deferred rent receivable | 50,053 | 44,000 | |||
Deferred charges, net | 12,945 | 8,123 | |||
Intangible assets, net | 50,822 | 66,112 | |||
Other assets | 17,255 | 929 | |||
Total assets | 1,999,741 | 1,956,020 | |||
Notes and mortgages payable, net | 1,197,385 | 1,196,607 | |||
Accounts payable and accrued expenses | 29,237 | 21,211 | |||
Intangible liabilities, net | 35,124 | 46,365 | |||
Other liabilities | 5 | 155 | |||
Total liabilities | $ 1,261,751 | $ 1,264,338 | |||
[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 90.5% as of September 30, 2018. The assets and liabilities of the Operating Partnership, as of September 30, 2018, include $1,999,741 and $1,261,751 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 14, Variable Interest Entities (“VIEs”). |
Variable Interest Entities ("_3
Variable Interest Entities ("VIEs") - Summary of Investments in Unconsolidated Real Estate Funds and Maximum Risk of Loss from Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | $ 9,007 | $ 7,253 |
Investment [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | 9,007 | 7,253 |
Asset Management Fees and Other Receivables [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | 681 | 597 |
Maximum Risk of Loss [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | $ 9,688 | $ 7,850 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Values of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 26,668 | $ 29,039 |
Interest rate swap assets (included in “other assets”) | 33,276 | 9,855 |
Total assets | 59,944 | 38,894 |
Interest rate swap liabilities (included in “other liabilities”) | 317 | |
Total liabilities | 317 | |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 26,668 | 29,039 |
Total assets | 26,668 | 29,039 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swap assets (included in “other assets”) | 33,276 | 9,855 |
Total assets | $ 33,276 | 9,855 |
Interest rate swap liabilities (included in “other liabilities”) | 317 | |
Total liabilities | $ 317 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amounts and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total assets | $ 59,944 | $ 38,894 |
Total liabilities | 317 | |
Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Preferred equity investments, net | 35,983 | 35,817 |
Total assets | 35,983 | 35,817 |
Notes and mortgages payable | 3,599,800 | 3,583,100 |
Total liabilities | 3,599,800 | 3,583,100 |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Preferred equity investments, net | 36,270 | 36,112 |
Total assets | 36,270 | 36,112 |
Notes and mortgages payable | 3,572,687 | 3,596,953 |
Total liabilities | $ 3,572,687 | $ 3,596,953 |
Revenues - Summary of Revenues
Revenues - Summary of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Rental income | $ 167,934 | $ 156,384 | $ 500,868 | $ 469,961 |
Tenant reimbursement income | 15,579 | 14,053 | 42,989 | 38,761 |
Fee income: | ||||
Total fee income | 4,079 | 5,834 | 12,953 | 19,838 |
Lease termination income | 1,561 | 954 | 1,618 | 1,915 |
Other income | 3,443 | 2,545 | 9,858 | 8,235 |
Total fee and other income | 9,083 | 9,333 | 24,429 | 29,988 |
Total revenues | 192,596 | 179,770 | 568,286 | 538,710 |
Property Management Fees [Member] | ||||
Fee income: | ||||
Total fee income | 1,476 | 1,673 | 4,468 | 4,815 |
Asset Management Fees [Member] | ||||
Fee income: | ||||
Total fee income | 2,222 | 1,997 | 5,655 | 6,622 |
Acquisition, Disposition and Leasing Fee [Member] | ||||
Fee income: | ||||
Total fee income | 1,475 | 1,750 | 7,045 | |
Other Fee Income [Member] | ||||
Fee income: | ||||
Total fee income | $ 381 | $ 689 | $ 1,080 | $ 1,356 |
Revenues - Summary of Amount Re
Revenues - Summary of Amount Receivable from Customers under Various Fee Agreement (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Disaggregation Of Revenue [Line Items] | |
Balance as of December 31, 2017 | $ 17,082 |
Balance as of September 30, 2018 | 16,205 |
Revenue from Contract with Customers Under Various Fee Agreements [Member] | |
Disaggregation Of Revenue [Line Items] | |
Balance as of December 31, 2017 | 1,558 |
Balance as of September 30, 2018 | 1,882 |
Increase | 324 |
Revenue from Contract with Customers Under Various Fee Agreements [Member] | Property Management Fees [Member] | |
Disaggregation Of Revenue [Line Items] | |
Balance as of December 31, 2017 | 290 |
Balance as of September 30, 2018 | 472 |
Increase | 182 |
Revenue from Contract with Customers Under Various Fee Agreements [Member] | Asset Management Fees [Member] | |
Disaggregation Of Revenue [Line Items] | |
Balance as of December 31, 2017 | 762 |
Balance as of September 30, 2018 | 894 |
Increase | 132 |
Revenue from Contract with Customers Under Various Fee Agreements [Member] | Acquisition, Disposition and Leasing Fee [Member] | |
Disaggregation Of Revenue [Line Items] | |
Balance as of December 31, 2017 | 490 |
Balance as of September 30, 2018 | 490 |
Revenue from Contract with Customers Under Various Fee Agreements [Member] | Other Fee Income [Member] | |
Disaggregation Of Revenue [Line Items] | |
Balance as of December 31, 2017 | 16 |
Balance as of September 30, 2018 | 26 |
Increase | $ 10 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Other Fee Income [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Contract liabilities | $ 475,000 | $ 387,000 |
All Other Non-Lease Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Contract liabilities | 0 | 0 |
Contract asset | $ 0 | $ 0 |
Real Estate Impairment Loss - A
Real Estate Impairment Loss - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Real Estate [Abstract] | |
Real estate impairment loss | $ 46,000,000 |
Interest and Other Income (Lo_3
Interest and Other Income (Loss), net - Schedule Of Interest And Other Income (Loss), net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest And Other Income [Abstract] | ||||
Preferred equity investment income | $ 930 | $ 961 | $ 2,746 | $ 3,327 |
Interest and other income | 858 | 147 | 2,862 | 743 |
Mark-to-market of investments in our deferred compensation plans | 990 | 812 | 1,280 | 3,536 |
Valuation allowance on preferred equity investment | (19,588) | (19,588) | ||
Total interest and other income (loss), net | $ 2,778 | $ (17,668) | $ 6,888 | $ (11,982) |
Interest and Other Income (Lo_4
Interest and Other Income (Loss), net - Schedule Of Interest And Other Income (Loss), net (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||
Preferred equity ownership percentage | 24.40% | 24.40% | ||
PGRESS Equity Holdings L.P. [Member] | ||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||
Preferred equity investment income, attributable to parent | $ 227 | $ 243 | $ 669 | $ 819 |
Preferred equity ownership percentage | 24.40% | 24.40% | ||
PGRESS Equity Holdings L.P. [Member] | 2 Herald Square [Member] | ||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||
Preferred equity ownership percentage | 24.40% | 24.40% | ||
Valuation allowance on preferred equity investment, attributable to parent | $ 4,780 | $ 4,780 | ||
Valuation allowance on preferred equity investment attributable to noncontrolling interests | $ 14,808 | $ 14,808 |
Interest and Debt Expense - Det
Interest and Debt Expense - Details of Interest and Debt Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest And Debt Expense [Abstract] | ||||
Interest expense | $ 34,353 | $ 32,914 | $ 101,729 | $ 99,201 |
Amortization of deferred financing costs | 2,752 | 2,819 | 8,267 | 8,367 |
Total interest and debt expense | $ 37,105 | $ 35,733 | $ 109,996 | $ 107,568 |
Incentive Compensation - Additi
Incentive Compensation - Additional Information (Details) - USD ($) | Apr. 03, 2018 | Feb. 05, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 4,330,000 | $ 3,825,000 | $ 15,245,000 | $ 11,692,000 | ||
Equity Incentive Plan [Member] | Full Value Awards [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares available for grant | 9,254,010 | 9,254,010 | ||||
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, 2018 | |||||
Performance measurement period, end date | Dec. 31, 2020 | |||||
Percentage of award earned based on performance of absolute shareholder return | 25.00% | |||||
Fair value of awards granted | $ 7,009,000 | |||||
Vesting period | 4 years | |||||
2017 Performance Program [Member] | 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] | Exceeds 80th Percentile [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of award earned based on performance of relative shareholder return | 75.00% | |||||
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 [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% | |||||
2017 Performance Program [Member] | Minimum [Member] | At 30th Percentile [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of the awards that vest | 18.00% | |||||
2015 Performance Program [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Performance measurement period, units forfeited | 779,055 | |||||
Unrecognized compensation cost | $ 947,000 | |||||
Unrecognized compensation cost, recognized over a weighted-average period | 1 year 7 months 6 days |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income (loss) attributable to common stockholders | $ 37,531 | $ (10,214) | $ 3,829 | $ 93,174 |
Earnings allocated to unvested participating securities | (27) | (13) | (63) | (86) |
Numerator for income (loss) per common share - basic and diluted | $ 37,504 | $ (10,227) | $ 3,766 | $ 93,088 |
Denominator: | ||||
Denominator for basic income (loss) per common share - weighted average shares | 240,447,921 | 239,445,810 | 240,365,882 | 235,151,398 |
Effect of dilutive stock-based compensation plans | 41,000 | 25,000 | 27,000 | |
Denominator for diluted income (loss) per common share - weighted average shares | 240,489,138 | 239,445,810 | 240,391,184 | 235,177,683 |
Income (loss) per common share - basic and diluted | $ 0.16 | $ (0.04) | $ 0.02 | $ 0.40 |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Computation of Earnings Per Share (Parenthetical) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Effect of dilutive securities excluded from computation of earning per share | 27,322 | 27,911 | 26,452 | 32,036 |
Related Parties - Additional In
Related Parties - Additional Information (Details) | Nov. 01, 2017 | Sep. 30, 2018USD ($)ft² | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)ft² | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Related Party Transaction [Line Items] | ||||||
Due to affiliates | $ 27,299,000 | $ 27,299,000 | $ 27,299,000 | |||
Interest Expense, Related Party | 98,000 | $ 34,000 | 290,000 | $ 103,000 | ||
Fee and other income | 9,083,000 | 9,333,000 | 24,429,000 | 29,988,000 | ||
Property management, asset management, leasing and other related services fee income | 4,079,000 | 5,834,000 | 12,953,000 | 19,838,000 | ||
Accounts and other receivables, net | 16,205,000 | 16,205,000 | 17,082,000 | |||
Transaction related costs | 450,000 | 274,000 | 863,000 | 1,051,000 | ||
Accounts payable and accrued expenses | $ 133,995,000 | $ 133,995,000 | 117,630,000 | |||
Area of related party lease | ft² | 11,900,000 | 11,900,000 | ||||
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 | $ 200,000 | 207,000 | $ 624,000 | 619,000 | ||
CNBB-RDF Holdings, LP [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due to affiliates | 24,500,000 | 24,500,000 | ||||
CNBB-RDF Holdings Otto Family [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due to affiliates | 2,799,000 | 2,799,000 | ||||
Unconsolidated Joint Ventures and Real Estate Funds [Member] | Management Agreements [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Property management, asset management, leasing and other related services fee income | 3,235,000 | 4,616,000 | 10,329,000 | 16,391,000 | ||
Accounts and other receivables, net | $ 1,700,000 | $ 1,700,000 | 1,627,000 | |||
Hamburg Trust Consulting GMBH ("HTC") [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Mark-up cost percentage | 10.00% | 10.00% | ||||
Transaction related costs | $ 69,000 | 50,000 | $ 129,000 | 220,000 | ||
Accounts payable and accrued expenses | $ 29,000 | $ 29,000 | $ 51,000 | |||
Hamburg Trust Consulting GMBH ("HTC") [Member] | Chairman, Chief Executive Officer and President [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
Mannheim Trust [Member] | Board of Director [Member] | 712 Fifth Avenue [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Equity method ownership percentage | 50.00% | 50.00% | ||||
Area of related party lease | ft² | 5,593 | 5,593 | ||||
Lease rental income | $ 92,000 | $ 96,000 | $ 273,000 | $ 274,000 | ||
Notes Payable To Related Parties | CNBB-RDF Holdings, LP [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Maturity Date | 2018-11 | |||||
Note payable, fixed bearing interest rate | 1.40% | |||||
Notes Payable To Related Parties | CNBB-RDF Holdings Otto Family [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Maturity Date | 2018-11 | |||||
Note payable, fixed bearing interest rate | 1.40% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2018ft² | Feb. 16, 2018USD ($) | Nov. 23, 2014ft² | |
Other Commitments [Line Items] | ||||
Area of office properties | ft² | 11,900,000 | |||
Minimum [Member] | New York State Division Of Taxation And Finance [Member] | ||||
Other Commitments [Line Items] | ||||
Loss Contingency, Estimate of Possible Loss | $ | $ 0 | |||
Maximum [Member] | New York State Division Of Taxation And Finance [Member] | ||||
Other Commitments [Line Items] | ||||
Loss Contingency, Estimate of Possible Loss | $ | $ 38,900,000 | |||
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% | |||
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 | ft² | 19,050 |
Segments - Additional Informati
Segments - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segments - Schedule of NOI for
Segments - Schedule of NOI for Each Reportable Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Property-related revenues | $ 188,517 | $ 173,936 | $ 555,333 | $ 518,872 |
Property-related operating expenses | (69,811) | (68,264) | (206,435) | (197,696) |
NOI from unconsolidated joint ventures | 4,448 | 4,993 | 13,757 | 14,774 |
NOI | 123,154 | 110,665 | 362,655 | 335,950 |
New York [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property-related revenues | 118,539 | 109,493 | 347,720 | 321,419 |
Property-related operating expenses | (48,257) | (46,609) | (140,710) | (134,657) |
NOI from unconsolidated joint ventures | 4,356 | 4,815 | 13,514 | 14,406 |
NOI | 74,638 | 67,699 | 220,524 | 201,168 |
Washington, D.C. [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property-related revenues | 12,685 | 14,986 | 43,569 | 56,911 |
Property-related operating expenses | (4,782) | (5,887) | (16,363) | (21,376) |
NOI | 7,903 | 9,099 | 27,206 | 35,535 |
San Francisco [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property-related revenues | 57,568 | 49,758 | 164,811 | 139,898 |
Property-related operating expenses | (15,206) | (14,164) | (44,370) | (35,889) |
NOI | 42,362 | 35,594 | 120,441 | 104,009 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property-related revenues | (275) | (301) | (767) | 644 |
Property-related operating expenses | (1,566) | (1,604) | (4,992) | (5,774) |
NOI from unconsolidated joint ventures | 92 | 178 | 243 | 368 |
NOI | $ (1,749) | $ (1,727) | $ (5,516) | $ (4,762) |
Segments - Schedule of Reconcil
Segments - Schedule of Reconciliation of NOI to Net (Loss) Income Attributable to Common Stockholders (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting [Abstract] | ||||
NOI | $ 123,154,000 | $ 110,665,000 | $ 362,655,000 | $ 335,950,000 |
Fee income | 4,079,000 | 5,834,000 | 12,953,000 | 19,838,000 |
Depreciation and amortization expense | (64,610,000) | (66,515,000) | (194,541,000) | (198,143,000) |
General and administrative expenses | (14,452,000) | (14,470,000) | (44,278,000) | (44,624,000) |
Transaction related costs | (450,000) | (274,000) | (863,000) | (1,051,000) |
NOI from unconsolidated joint ventures | (4,448,000) | (4,993,000) | (13,757,000) | (14,774,000) |
Income from unconsolidated joint ventures | 472,000 | 671,000 | 2,931,000 | 19,143,000 |
Loss from unconsolidated real estate funds | (188,000) | (3,930,000) | (268,000) | (6,053,000) |
Interest and other income (loss), net | 2,778,000 | (17,668,000) | 6,888,000 | (11,982,000) |
Interest and debt expense | (37,105,000) | (35,733,000) | (109,996,000) | (107,568,000) |
Loss on early extinguishment of debt | (7,877,000) | |||
Real estate impairment loss | (46,000,000) | |||
Gain on sale of real estate | 36,845,000 | 36,845,000 | 133,989,000 | |
Unrealized gain on interest rate swaps | 1,802,000 | |||
Net income (loss) before income taxes | 46,075,000 | (26,413,000) | 12,569,000 | 118,650,000 |
Income tax (expense) benefit | (1,814,000) | 1,010,000 | (2,171,000) | (4,242,000) |
Net income (loss) | 44,261,000 | (25,403,000) | 10,398,000 | 114,408,000 |
Consolidated joint ventures | (2,713,000) | 14,217,000 | (5,520,000) | 11,029,000 |
Consolidated real estate fund | (86,000) | (114,000) | (668,000) | (20,195,000) |
Operating Partnership | (3,931,000) | 1,086,000 | (381,000) | (12,068,000) |
Net income (loss) attributable to common stockholders | $ 37,531,000 | $ (10,214,000) | $ 3,829,000 | $ 93,174,000 |
Segments - Schedule of Total As
Segments - Schedule of Total Assets for Each Reportable Segments Information (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total assets | [1] | $ 8,941,237 | $ 8,917,661 |
New York [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 5,573,623 | 5,511,061 | |
Washington, D.C. [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 444,154 | 693,408 | |
San Francisco [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,406,334 | 2,421,173 | |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 517,126 | $ 292,019 | |
[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 90.5% as of September 30, 2018. The assets and liabilities of the Operating Partnership, as of September 30, 2018, include $1,999,741 and $1,261,751 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 14, Variable Interest Entities (“VIEs”). |