Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | ALEXANDERS INC | ||
Entity Central Index Key | 3,499 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 5,107,290 | ||
Entity Public Float | $ 890,370,000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Trading Symbol | alx |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Real estate, at cost: | ||
Land | $ 44,971 | $ 44,971 |
Buildings and leasehold improvements | 988,846 | 985,800 |
Development and construction in progress | 3,551 | 2,780 |
Total | 1,037,368 | 1,033,551 |
Accumulated depreciation and amortization | (283,044) | (252,737) |
Real estate, net | 754,324 | 780,814 |
Cash and cash equivalents | 307,536 | 288,926 |
Restricted cash | 85,743 | 85,752 |
Rego Park II loan participation | 198,537 | 0 |
Marketable securities | 35,156 | 37,918 |
Tenant and other receivables, net of allowance for doubtful accounts of $1,501 and $1,473, respectively | 2,693 | 3,056 |
Receivable arising from the straight-lining of rents | 174,713 | 179,010 |
Deferred lease and other property costs, net, including unamortized leasing fees to Vornado of $35,152 and $36,960, respectively | 45,790 | 48,387 |
Other assets | 27,903 | 27,367 |
Assets | 1,632,395 | 1,451,230 |
LIABILITIES AND EQUITY | ||
Mortgages payable, net of deferred debt issuance costs | 1,240,222 | 1,052,359 |
Amounts due to Vornado | 2,490 | 897 |
Accounts payable and accrued expenses | 42,827 | 42,200 |
Other liabilities | 2,901 | 2,929 |
Total liabilities | 1,288,440 | 1,098,385 |
Commitments and contingencies | ||
Preferred stock: $1.00 par value per share; authorized, 3,000,000 shares; issued and outstanding, none | 0 | 0 |
Common stock: $1.00 par value per share; authorized, 10,000,000 shares; issued, 5,173,450 shares; outstanding, 5,107,290 and 5,106,196, respectively | 5,173 | 5,173 |
Additional capital | 31,577 | 31,189 |
Retained earnings | 302,543 | 308,995 |
Accumulated other comprehensive income | 5,030 | 7,862 |
Equity before treasury stock | 344,323 | 353,219 |
Treasury stock: 66,160 and 67,254 shares, respectively, at cost | (368) | (374) |
Total equity | 343,955 | 352,845 |
Total liabilities and equity | $ 1,632,395 | $ 1,451,230 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Tenant and other receivables, net of allowance for doubtful accounts of $1,501 and $1,473, respectively | $ 1,501 | $ 1,473 |
Unamortized leasing fees to Vornado | $ 35,152 | $ 36,960 |
Preferred stock: par value per share (in dollars per share) | $ 1 | $ 1 |
Preferred stock: authorized shares | 3,000,000 | 3,000,000 |
Preferred stock: issued shares | 0 | 0 |
Preferred stock: outstanding shares | 0 | 0 |
Common stock: par value per share (in dollars per share) | $ 1 | $ 1 |
Common stock: authorized shares | 10,000,000 | 10,000,000 |
Common stock: issued shares | 5,173,450 | 5,173,450 |
Common stock: outstanding shares | 5,107,290 | 5,106,196 |
Treasury stock: shares | 66,160 | 67,254 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REVENUES | |||
Property rentals | $ 152,857 | $ 151,444 | $ 138,688 |
Expense reimbursements | 77,717 | 75,492 | 69,227 |
Total revenues | 230,574 | 226,936 | 207,915 |
EXPENSES | |||
Operating, including fees to Vornado of $4,671, $4,590, and $4,476, respectively | 85,127 | 82,232 | 76,218 |
Depreciation and amortization | 34,925 | 33,807 | 31,086 |
General and administrative, including management fees to Vornado of $2,380 in each year | 5,252 | 5,436 | 5,406 |
Total expenses | 125,304 | 121,475 | 112,710 |
OPERATING INCOME | 105,270 | 105,461 | 95,205 |
Interest and other income, net | 6,716 | 3,305 | 5,949 |
Interest and debt expense | (31,474) | (22,241) | (24,239) |
Income before income taxes | 80,512 | 86,525 | 76,915 |
Income tax expense | (3) | (48) | (8) |
Net income | $ 80,509 | $ 86,477 | $ 76,907 |
Net income per common share - basic and diluted (in dollars per share) | $ 15.74 | $ 16.91 | $ 15.04 |
Weighted average shares outstanding - basic and diluted (in shares) | 5,115,501 | 5,114,084 | 5,112,352 |
Consolidated Statements of Inc5
Consolidated Statements of Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Fees to Vornado | $ 4,671 | $ 4,590 | $ 4,476 |
Management fees to Vornado | $ 2,380 | $ 2,380 | $ 2,380 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 80,509 | $ 86,477 | $ 76,907 |
Other comprehensive (loss) income: | |||
Change in unrealized net gain on available-for-sale securities | (2,762) | (5,273) | (1,455) |
Change in value of interest rate cap | (70) | 133 | 0 |
Comprehensive income | $ 77,677 | $ 81,337 | $ 75,452 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock |
Balance at Dec. 31, 2014 | $ 348,399 | $ 5,173 | $ 30,139 | $ 299,004 | $ 14,457 | $ (374) |
Balance (in shares) at Dec. 31, 2014 | 5,173,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 76,907 | 76,907 | ||||
Dividends paid | (71,571) | (71,571) | ||||
Change in unrealized net gain on available-for-sale securities | (1,455) | (1,455) | ||||
Change in value of interest rate cap | 0 | |||||
Deferred stock unit grant | 600 | 600 | ||||
Balance (in shares) at Dec. 31, 2015 | 5,173,000 | |||||
Balance at Dec. 31, 2015 | 352,880 | $ 5,173 | 30,739 | 304,340 | 13,002 | (374) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 86,477 | 86,477 | ||||
Dividends paid | (81,822) | (81,822) | ||||
Change in unrealized net gain on available-for-sale securities | (5,273) | (5,273) | ||||
Change in value of interest rate cap | 133 | 133 | ||||
Deferred stock unit grant | $ 450 | 450 | ||||
Balance (in shares) at Dec. 31, 2016 | 5,173,450 | 5,173,000 | ||||
Balance at Dec. 31, 2016 | $ 352,845 | $ 5,173 | 31,189 | 308,995 | 7,862 | (374) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 80,509 | 80,509 | ||||
Dividends paid | (86,961) | (86,961) | ||||
Change in unrealized net gain on available-for-sale securities | (2,762) | (2,762) | ||||
Change in value of interest rate cap | (70) | (70) | ||||
Deferred stock unit grant | 394 | 394 | ||||
Other | $ 0 | (6) | 6 | |||
Balance (in shares) at Dec. 31, 2017 | 5,173,450 | 5,173,000 | ||||
Balance at Dec. 31, 2017 | $ 343,955 | $ 5,173 | $ 31,577 | $ 302,543 | $ 5,030 | $ (368) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 80,509 | $ 86,477 | $ 76,907 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization, including amortization of debt issuance costs | 38,681 | 36,374 | 33,671 |
Straight-lining of rental income | 4,297 | 2,347 | (1,418) |
Stock-based compensation expense | 394 | 450 | 600 |
Change in operating assets and liabilities: | |||
Tenant and other receivables, net | 363 | 958 | (1,801) |
Other assets | (2,627) | (9,894) | (4,777) |
Amounts due to Vornado | 1,626 | (1,913) | 2,228 |
Accounts payable and accrued expenses | 211 | 16,049 | 822 |
Other liabilities | (28) | (28) | (31) |
Net cash provided by operating activities | 123,426 | 130,820 | 106,201 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Construction in progress and real estate additions | (3,434) | (15,506) | (50,121) |
Rego Park II loan participation payment | (200,000) | 0 | 0 |
Proceeds from maturing short-term investments | 0 | 0 | 24,998 |
Principal repayment proceeds from Rego Park II loan participation | 1,463 | 0 | 0 |
Net cash used in investing activities | (201,971) | (15,506) | (25,123) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Debt repayments | (303,707) | (3,440) | (323,193) |
Proceeds from borrowing | 500,000 | 0 | 350,000 |
Dividends paid | (86,961) | (81,822) | (71,571) |
Debt issuance costs | (12,186) | (30) | (4,075) |
Net cash provided by (used in) financing activities | 97,146 | (85,292) | (48,839) |
Net increase in cash and cash equivalents and restricted cash | 18,601 | 30,022 | 32,239 |
Cash and cash equivalents and restricted cash at beginning of year | 374,678 | 344,656 | 312,417 |
Cash and cash equivalents and restricted cash at end of year | 393,279 | 374,678 | 344,656 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |||
Cash and cash equivalents at beginning of year | 288,926 | 259,349 | 227,815 |
Restricted cash at beginning of year | 85,752 | 85,307 | 84,602 |
Cash and cash equivalents and restricted cash at beginning of year | 374,678 | 344,656 | 312,417 |
Cash and cash equivalents at end of year | 307,536 | 288,926 | 259,349 |
Restricted cash at end of year | 85,743 | 85,752 | 85,307 |
Cash and cash equivalents and restricted cash at end of year | 393,279 | 374,678 | 344,656 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash payments for interest, excluding capitalized interest of $1,486 in 2015 | 26,994 | 19,517 | 22,354 |
NON-CASH TRANSACTIONS | |||
Liability for real estate additions, including $21, $54 and $5,795 due to Vornado | 705 | 322 | 10,139 |
Write-off of fully amortized and/or depreciated assets | 4,265 | 1,691 | 20,786 |
Change in unrealized net gain on available-for-sale securities | $ (2,762) | $ (5,273) | $ (1,455) |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash paid for interest, capitalized | $ 1,486 | ||
Liability for real estate additions | $ 705 | $ 322 | 10,139 |
Vornado | |||
Liability for real estate additions | $ 21 | $ 54 | $ 5,795 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (“REIT”), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to “we,” “us,” “our,” “Company” and “Alexander’s” refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (“Vornado”) (NYSE: VNO). We have seven properties in the greater New York City metropolitan area consisting of: Operating properties • 731 Lexington Avenue, a 1,311,000 square foot multi-use building, comprising the entire block bounded by Lexington Avenue, East 59 th Street, Third Avenue and East 58 th Street in Manhattan. The building contains 889,000 and 174,000 of net rentable square feet of office and retail space, respectively, which we own, and 248,000 square feet of residential space consisting of 105 condominium units, which we sold. Bloomberg L.P. (“Bloomberg”) occupies all of the office space. The Home Depot ( 83,000 square feet), The Container Store ( 34,000 square feet) and Hennes & Mauritz ( 27,000 square feet) are the principal retail tenants; • Rego Park I, a 343,000 square foot shopping center, located on Queens Boulevard and 63 rd Road in Queens. The center is anchored by a 195,000 square foot Sears department store, a 50,000 square foot Burlington, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls. On April 4, 2017, Sears closed its store at the property. Annual revenue from Sears is approximately $10,600,000 , under a lease which expires in March 2021. In its 2016 annual report on Form 10-K, Sears indicated that substantial doubt exists related to its ability to continue as a going concern; • Rego Park II, a 609,000 square foot shopping center, adjacent to the Rego Park I shopping center in Queens. The center is anchored by a 145,000 square foot Costco, a 135,000 square foot Century 21 and a 133,000 square foot Kohl’s. In addition, 47,000 square feet is leased to Toys “R” Us/Babies “R” Us (“Toys”), a one-third owned affiliate of Vornado. On September 18, 2017, Toys filed for Chapter 11 bankruptcy relief; • The Alexander apartment tower, located above our Rego Park II shopping center, contains 312 units aggregating 255,000 square feet and is 94.6% leased as of December 31, 2017 ; • Paramus, located at the intersection of Routes 4 and 17 in Paramus, New Jersey, consists of 30.3 acres of land that is leased to IKEA Property, Inc.; and • Flushing, a 167,000 square foot building, located at Roosevelt Avenue and Main Street in Queens, that is sub-leased to New World Mall LLC for the remainder of our ground lease term. Property to be developed • Rego Park III, a 140,000 square foot land parcel adjacent to the Rego Park II shopping center in Queens, at the intersection of Junction Boulevard and the Horace Harding Service Road. We have determined that our properties have similar economic characteristics and meet the criteria that permit the properties to be aggregated into one reportable segment (the leasing, management, development and redeveloping of properties in the greater New York City metropolitan area). Our chief operating decision-maker assesses and measures segment operating results based on a performance measure referred to as net operating income at the individual operating segment. Net operating income for each property represents net rental revenues less operating expenses. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation – The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries. All intercompany amounts have been eliminated. Our financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Certain prior year balances have been reclassified in order to conform to current year presentation. Recently Issued Accounting Literature – In May 2014, the Financial Accounting Standards Board (“FASB”) issued an update (“ASU 2014-09”) establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). ASU 2014-09, as amended by subsequent ASUs on the topic, establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. This standard, which is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2017, requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. We adopted this standard effective January 1, 2018 using the modified retrospective approach, which requires applying the new standard to all existing contracts not yet completed as of the effective date and recording a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. We have completed our evaluation of the standard’s impact on our revenue streams. The adoption of this standard is not expected to have a material impact on our consolidated financial statements. In January 2016, the FASB issued an update (“ASU 2016-01”) Recognition and Measurement of Financial Assets and Financial Liabilities to ASC Topic 825, Financial Instruments (“ASC 825”). ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this standard effective January 1, 2018 using the modified retrospective approach. While the adoption of this standard requires us to continue to measure “marketable securities” at fair value at each reporting date, the changes in fair value will be recognized in current period earnings as opposed to “other comprehensive (loss) income.” As a result, on January 1, 2018 we recorded an increase to retained earnings of $5,156,000 to recognize the unrealized gains previously recorded within “accumulated other comprehensive income.” Subsequent changes in the fair value of our marketable securities will be recorded to “interest and other income, net.” In February 2016, the FASB issued an update (“ASU 2016-02”) establishing ASC Topic 842, Leases , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase. Lessees are required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. Lessees will recognize expense based on the effective interest method for finance leases or on a straight-line basis for operating leases. The accounting applied by the lessor is largely unchanged from that applied under the existing lease standard. We are currently evaluating the overall impact of the adoption of ASU 2016-02 on our consolidated financial statements and believe that the standard will more significantly impact the accounting for leases in which we are a lessee. We will be required to record a right-of-use asset and lease liability for our Flushing property ground lease, equal to the present value of the remaining minimum lease payments, and will continue to recognize expense on a straight-line basis upon adoption of this standard. ASU 2016-02 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2018, with early adoption permitted. We will adopt this standard effective January 1, 2019 using the modified retrospective approach and will elect to use the practical expedients provided by this standard. In March 2016, the FASB issued an update (“ASU 2016-09”) Improvements to Employee Share-Based Payment Accounting to ASC Topic 718, Compensation - Stock Compensation (“ASC 718”). ASU 2016-09 amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 was effective for interim and annual reporting periods in fiscal years beginning after December 15, 2016. The adoption of this update as of January 1, 2017 did not have a material impact on our consolidated financial statements. ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued In August 2016, the FASB issued an update (“ASU 2016-15”) Classification of Certain Cash Receipts and Cash Payments to ASC Topic 230, Statement of Cash Flows . ASU 2016-15 clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice with respect to (i) debt prepayment or debt extinguishment costs, (ii) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (iii) contingent consideration payments made after a business combination, (iv) proceeds from the settlement of insurance claims, (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (vi) distributions received from equity method investees, (vii) beneficial interests in securitization transactions, and (viii) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted. We elected to early adopt ASU 2016-15 effective January 1, 2017. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued an update (“ASU 2016-18”) Restricted Cash to ASC Topic 230, Statement of Cash Flows . ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances on the statement of cash flows upon adoption of this standard. ASU 2016-18 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted. We elected to early adopt ASU 2016-18 effective January 1, 2017, with retrospective application to our consolidated statements of cash flows. Accordingly, the consolidated statements of cash flows present a reconciliation of the changes in cash and cash equivalents and restricted cash. Restricted cash primarily consists of cash held in a non-interest bearing escrow account in connection with our Rego Park I 100% cash collateralized mortgage, as well as security deposits and other cash escrowed under loan agreements for debt service, real estate taxes, property insurance and capital improvements. In February 2017, the FASB issued an update (“ASU 2017-05”) Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets to ASC Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets . ASU 2017-05 clarifies the scope of recently established guidance on nonfinancial asset derecognition, as well as the accounting for partial sales of nonfinancial assets. This update conforms the derecognition guidance on nonfinancial assets with the model for transactions in ASC 606. ASU 2017-05 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. The adoption of this standard on January 1, 2018 is not expected to have an impact on our consolidated financial statements. In August 2017, the FASB issued an update (“ASU 2017-12”) Targeted Improvements to Accounting for Hedging Activities to ASC Topic 815, Derivatives and Hedging (“ASC 815”). ASU 2017-12 amends the hedge accounting recognition and presentation requirements in ASC 815. The update is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting and increase transparency as to the scope and results of hedge programs. ASU 2017-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The adoption of this standard on January 1, 2019 is not expected to have a material impact on our consolidated financial statements. Real Estate – Real estate is carried at cost, net of accumulated depreciation and amortization. As of December 31, 2017 and 2016, the carrying amount of our real estate, net of accumulated depreciation and amortization, was $754,324,000 and $780,814,000 , respectively. Maintenance and repairs are expensed as incurred. Depreciation requires an estimate by management of the useful life of each property and improvement as well as an allocation of the costs associated with a property to its various components. We capitalize all property operating expenses directly associated with and attributable to, the development and construction of a project, including interest expense. The capitalization period begins when development activities are underway and ends when it is determined that the asset is substantially complete and ready for its intended use, which is typically evidenced by the receipt of a temporary certificate of occupancy. General and administrative costs are expensed as incurred. ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Our properties and related intangible assets, including properties to be developed in the future, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Estimates of future cash flows are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. For our development properties, estimates of future cash flows also include all future expenditures necessary to develop the asset, including interest payments that will be capitalized as part of the cost of the asset. An impairment loss is recognized only if the carrying amount of the asset is not recoverable and is measured based on the excess of the property’s carrying amount over its estimated fair value. If our estimates of future cash flows, anticipated holding periods, or fair values change, based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Plans to hold properties over longer periods decrease the likelihood of recording impairment losses. Cash and Cash Equivalents – Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less and are carried at cost, which approximates fair value, due to their short-term maturities. The majority of our cash and cash equivalents consist of (i) deposits at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation limit, (ii) United States Treasury Bills, (iii) money market funds, which invest in United States Treasury Bills and (iv) certificates of deposit placed through an account registry service (“CDARS”). To date we have not experienced any losses on our invested cash. Short-term Investments – Short-term investments consist of United States Treasury Bills with original maturities greater than three but less than six months. These highly liquid investments are classified as available-for-sale and are presented at fair value on our consolidated balance sheets. Prior to January 1, 2018, unrealized gains and losses resulting from these investments were included in “other comprehensive (loss) income.” Effective January 1, 2018, changes in the fair value of these investments are recognized in current period earnings in accordance with ASC 825. Restricted Cash – Restricted cash primarily consists of cash held in a non-interest bearing escrow account in connection with our Rego Park I 100% cash collateralized mortgage, as well as security deposits and other cash escrowed under loan agreements for debt service, real estate taxes, property insurance and capital improvements. Marketable Securities – Our marketable securities consist of common shares of The Macerich Company (NYSE: MAC) (“Macerich”), which are classified as available-for-sale. Available-for-sale securities are presented at fair value on our consolidated balance sheets. Prior to January 1, 2018, unrealized gains and losses resulting from the mark-to-market of these securities were included in “other comprehensive (loss) income.” Effective January 1, 2018, changes in the fair value of these securities are recognized in current period earnings in accordance with ASC 825. We evaluate our marketable securities for impairment at the end of each reporting period. If investments have unrealized losses, we evaluate the underlying cause of the decline in value and the estimated recovery period, as well as the severity and duration of the decline. In our evaluation, we consider our ability and intent to hold our investment for a reasonable period of time sufficient for us to recover our cost basis, as well as the near-term prospects for the investment in relation to the severity and duration of the decline. Allowance for Doubtful Accounts – We periodically evaluate the collectibility of amounts due from tenants, including the receivable arising from the straight-lining of rents, and maintain an allowance for doubtful accounts ( $1,501,000 and $1,473,000 as of December 31, 2017 and 2016, respectively) for estimated losses resulting from the inability of tenants to make required payments under the lease agreements. We exercise judgment in establishing these allowances and consider payment history and current credit status in developing these estimates. ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Deferred Charges – Direct financing costs are deferred and amortized over the terms of the related agreements as a component of interest and debt expense. Direct costs related to leasing activities are capitalized and amortized on a straight-line basis over the lives of the related leases. All other deferred charges are amortized on a straight-line basis, which approximates the effective interest rate method, in accordance with the terms of the agreements to which they relate. Revenue Recognition – We have the following revenue sources and revenue recognition policies: Base Rent – revenue arising from tenant leases. These rents are recognized over the non-cancelable term of the related leases on a straight-line basis, which includes the effects of rent steps and free rent abatements under the leases. We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease. Percentage Rent – revenue arising from retail tenant leases that is contingent upon the sales of tenants exceeding defined thresholds. These rents are recognized only after the contingency has been removed (i.e., when tenant sales thresholds have been achieved). Expense Reimbursements – revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective properties. This revenue is recognized in the same periods as the expenses are incurred. Parking Income – revenue arising from the rental of parking space at our properties. This income is recognized as the service is provided. Income Taxes – We operate in a manner intended to enable us to continue to qualify as a REIT under Sections 856 – 860 of the Internal Revenue Code of 1986, as amended (the “Code”). In order to maintain our qualification as a REIT under the Code, we must distribute at least 90% of our taxable income to stockholders each year. We distribute to our stockholders 100% of our taxable income and therefore, no provision for Federal income taxes is required. Dividends distributed for the year ended December 31, 2017 were characterized, for federal income taxes, as 99.5% ordinary income and 0.5% long-term capital gain income. Dividends distributed for the year ended December 31, 2016 were characterized, for federal income taxes, as 97.7% ordinary income and 2.3% long-term capital gain income. Dividends distributed for the year ended December 31, 2015 were categorized, for federal income tax purposes, as 97.3% ordinary income and 2.7% long-term capital gain income. The following table reconciles our net income to estimated taxable income for the years ended December 31, 2017 , 2016 and 2015 . (Unaudited and in thousands) Year Ended December 31, 2017 2016 2015 Net income $ 80,509 $ 86,477 $ 76,907 Straight-line rent adjustments 4,250 2,347 (1,418 ) Depreciation and amortization timing differences 3,084 (14,534 ) 2,477 Other (343 ) 2,975 751 Estimated taxable income $ 87,500 $ 77,265 $ 78,717 As of December 31, 2017 , the net basis of our assets and liabilities for tax purposes are approximately $199,268,000 lower than the amount reported for financial statement purposes. |
Rego Park II Loan Participation
Rego Park II Loan Participation | 12 Months Ended |
Dec. 31, 2017 | |
Mortgage Loans on Real Estate [Abstract] | |
Rego Park II Loan Participation | REGO PARK II LOAN PARTICIPATION On July 28, 2017, we entered into a participation and servicing agreement with the lender on our Rego Park II shopping center loan, which matures on November 30, 2018. We invested $200,000,000 to participate in the loan and are entitled to interest at LIBOR plus 1.60% ( 3.17% as of December 31, 2017). The investment is presented as “Rego Park II loan participation” on our consolidated balance sheet as of December 31, 2017 and interest earned is recognized as “interest and other income, net” in our consolidated statement of income for the year ended December 31, 2017. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Vornado As of December 31, 2017 , Vornado owned 32.4% of our outstanding common stock. We are managed by, and our properties are leased and developed by, Vornado, pursuant to the agreements described below, which expire in March of each year and are automatically renewable. Steven Roth is the Chairman of our Board of Directors and Chief Executive Officer, the Managing General Partner of Interstate Properties (“Interstate”), a New Jersey general partnership, and the Chairman of the Board of Trustees and Chief Executive Officer of Vornado. As of December 31, 2017 , Mr. Roth, Interstate and its other two general partners, David Mandelbaum and Russell B. Wight, Jr. (who are also directors of the Company and trustees of Vornado) owned, in the aggregate, 26.2% of our outstanding common stock, in addition to the 2.3% they indirectly own through Vornado. Joseph Macnow, our Treasurer, is the Executive Vice President - Chief Financial Officer and Chief Administrative Officer of Vornado. Matthew Iocco, our Chief Financial Officer, is the Executive Vice President - Chief Accounting Officer of Vornado. Management and Development Agreements We pay Vornado an annual management fee equal to the sum of (i) $2,800,000 , (ii) 2% of gross revenue from the Rego Park II shopping center, (iii) $0.50 per square foot of the tenant-occupied office and retail space at 731 Lexington Avenue, and (iv) $306,000 , escalating at 3% per annum, for managing the common area of 731 Lexington Avenue. Vornado is also entitled to a development fee equal to 6% of development costs, as defined. Leasing and Other Agreements Vornado also provides us with leasing services for a fee of 3% of rent for the first ten years of a lease term, 2% of rent for the eleventh through the twentieth year of a lease term, and 1% of rent for the twenty-first through thirtieth year of a lease term, subject to the payment of rents by tenants. In the event third-party real estate brokers are used, the fees to Vornado increase by 1% and Vornado is responsible for the fees to the third-party real estate brokers. Vornado is also entitled to a commission upon the sale of any of our assets equal to 3% of gross proceeds, as defined, for asset sales less than $50,000,000 and 1% of gross proceeds, as defined, for asset sales of $50,000,000 or more. We also have agreements with Building Maintenance Services, a wholly owned subsidiary of Vornado, to supervise (i) cleaning, engineering and security services at our Lexington Avenue property and (ii) security services at our Rego Park I and Rego Park II properties and The Alexander apartment tower. ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 4. RELATED PARTY TRANSACTIONS - continued The following is a summary of fees to Vornado under the various agreements discussed above. Year Ended December 31, (Amounts in thousands) 2017 2016 2015 Company management fees $ 2,800 $ 2,800 $ 2,800 Development fees 29 194 2,435 Leasing fees 1,829 7,401 2,950 Property management, cleaning, engineering and security fees 4,114 4,033 3,614 $ 8,772 $ 14,428 $ 11,799 As of December 31, 2017 , the amounts due to Vornado were $1,811,000 for leasing fees; $658,000 for management, property management, cleaning, engineering and security fees; and $21,000 for development fees. As of December 31, 2016 , the amounts due to Vornado were $428,000 for management, property management, cleaning, engineering and security fees; $415,000 for leasing fees; and $54,000 for development fees. In January 2016, we paid an $8,916,000 leasing commission related to a lease amendment signed with Bloomberg, of which $7,200,000 was to a third party broker and $1,716,000 was to Vornado. In March 2016, we paid Vornado a development fee of $5,784,000 related to The Alexander apartment tower. Toys Our affiliate, Vornado, owns 32.5% of Toys. Joseph Macnow, Vornado’s Executive Vice President - Chief Financial Officer and Chief Administrative Officer and Wendy A. Silverstein, a member of our Board of Directors, represent Vornado as members of Toys’ Board of Directors. Toys leases 47,000 square feet of retail space at our Rego Park II shopping center ( $2,600,000 of annual revenue). On September 18, 2017, Toys filed for Chapter 11 bankruptcy relief. There are $694,000 of tenant improvements, $257,000 of unamortized deferred leasing costs and $544,000 of receivables arising from the straight-lining of rent on our consolidated balance sheet related to the Toys lease as of December 31, 2017. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2017 | |
Marketable Securities [Abstract] | |
Marketable Securities | MARKETABLE SECURITIES As of December 31, 2017 and 2016 , we owned 535,265 common shares of Macerich. These shares have an economic cost of $56.05 per share, or $30,000,000 in the aggregate. As of December 31, 2017 and 2016 , the fair value of these shares was $35,156,000 and $37,918,000 , respectively, based on Macerich’s closing share price of $65.68 per share and $70.84 per share, respectively. These shares are included in “marketable securities” on our consolidated balance sheets and are classified as available-for-sale. Available-for-sale securities are presented at fair value on our consolidated balance sheets. Prior to January 1, 2018, unrealized gains and losses resulting from the mark-to-market of these securities were included in “other comprehensive (loss) income.” Effective January 1, 2018, changes in the fair value of these securities are recognized in current period earnings in accordance with ASC 825. Other comprehensive (loss) income includes unrealized losses of $2,762,000 , $5,273,000 and $1,455,000 for the years ended December 31, 2017 , 2016 and 2015, respectively. In October 2015, we recognized $2,141,000 of dividend income as a result of a special dividend declared by Macerich, which is included as a component of “interest and other income, net,” in our consolidated statement of income for the year ended December 31, 2015. |
Mortgages Payable
Mortgages Payable | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Mortgages Payable | MORTGAGES PAYABLE On June 1, 2017, we completed a $500,000,000 refinancing of the office portion of 731 Lexington Avenue. The interest-only loan is at LIBOR plus 0.90% and matures in June 2020, with four one -year extension options. In connection therewith, we purchased an interest rate cap with a notional amount of $500,000,000 that caps LIBOR at a rate of 6.0% . The property was previously encumbered by a $300,000,000 interest-only mortgage at LIBOR plus 0.95% which was scheduled to mature in March 2021. The following is a summary of our outstanding mortgages payable. We may refinance our maturing debt as it comes due or choose to repay it. Interest Rate at December 31, 2017 Balance at December 31, (Amounts in thousands) Maturity (1) 2017 2016 First mortgages secured by: Rego Park I shopping center (100% cash Mar. 2018 0.35% $ 78,246 $ 78,246 collateralized) Paramus Oct. 2018 2.90% 68,000 68,000 Rego Park II shopping center (2) Nov. 2018 3.42% 256,194 259,901 731 Lexington Avenue, retail space (3) Aug. 2022 2.78% 350,000 350,000 731 Lexington Avenue, office space (4) Jun. 2024 2.38% 500,000 300,000 Total 1,252,440 1,056,147 Deferred debt issuance costs, net of accumulated amortization of $6,315 and $6,824, respectively (12,218 ) (3,788 ) $ 1,240,222 $ 1,052,359 (1) Represents the extended maturity where we have the unilateral right to extend. (2) This loan bears interest at LIBOR plus 1.85%. See page for details of our Rego Park II loan participation. (3) This loan bears interest at LIBOR plus 1.40%. (4) This loan bears interest at LIBOR plus 0.90%. All of our debt is secured by mortgages and/or pledges of the stock of the subsidiaries holding the properties. The net carrying value of real estate collateralizing the debt amounted to $640,025,000 as of December 31, 2017 . Our existing financing documents contain covenants that limit our ability to incur additional indebtedness on these properties, and in certain circumstances, provide for lender approval of tenants’ leases and yield maintenance to prepay them. As of December 31, 2017 , the principal repayments for the next five years and thereafter are as follows: (Amounts in thousands) Year Ending December 31, Amount 2018 $ 402,440 2019 — 2020 — 2021 — 2022 350,000 Thereafter 500,000 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurement and Disclosures defines fair value and establishes a framework for measuring fair value. ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Financial Assets and Liabilities Measured at Fair Value Financial assets measured at fair value on our consolidated balance sheets as of December 31, 2017 and 2016 consist of marketable securities, which are presented in the table below based on their level in the fair value hierarchy, and an interest rate cap, which fair value was insignificant as of December 31, 2017 and 2016 . There were no financial liabilities measured at fair value as of December 31, 2017 and 2016 . As of December 31, 2017 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 35,156 $ 35,156 — — As of December 31, 2016 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 37,918 $ 37,918 — — Financial Assets and Liabilities not Measured at Fair Value Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents, the Rego Park II loan participation and mortgages payable. Cash equivalents are carried at cost, which approximates fair value due to their short-term maturities and are classified as Level 1. The fair values of the Rego Park II loan participation and our mortgages payable are calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist, and are classified as Level 2. The table below summarizes the carrying amount and fair value of these financial instruments as of December 31, 2017 and 2016 . As of December 31, 2017 As of December 31, 2016 Carrying Fair Carrying Fair (Amounts in thousands) Amount Value Amount Value Assets: Cash equivalents $ 273,914 $ 273,914 $ 256,370 $ 256,370 Rego Park II loan participation 198,537 198,000 — — 472,451 471,914 256,370 256,370 Liabilities: Mortgages payable (excluding deferred debt issuance costs, net) $ 1,252,440 $ 1,239,000 $ 1,056,147 $ 1,045,000 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | LEASES As Lessor We lease space to tenants in an office building and in retail centers. The rental terms range from approximately 5 to 25 years . The leases provide for the payment of fixed base rents payable monthly in advance as well as reimbursements of real estate taxes, insurance and maintenance costs. Retail leases may also provide for the payment by the lessee of additional rents based on a percentage of their sales. We also lease residential space at The Alexander apartment tower with 1 or 2 year lease terms. Future base rental revenue under these non-cancelable operating leases is as follows: (Amounts in thousands) Year Ending December 31, Amount 2018 $ 144,712 2019 138,649 2020 136,536 2021 119,962 2022 111,533 Thereafter 783,019 These future minimum amounts do not include additional rents based on a percentage of retail tenants’ sales. These rents were $174,000 , $182,000 and $94,000 , respectively, for the years ended December 31, 2017 , 2016 and 2015 . Bloomberg accounted for revenue of $105,224,000 , $104,590,000 and $94,468,000 , in the years ended December 31, 2017, 2016 and 2015, respectively, representing approximately 46% , 46% and 45% of our total revenues in each year, respectively. No other tenant accounted for more than 10% of our total revenues. If we were to lose Bloomberg as a tenant, or if Bloomberg were to be unable to fulfill its obligations under its lease, it would adversely affect our results of operations and financial condition. In order to assist us in our continuing assessment of Bloomberg’s creditworthiness, we receive certain confidential financial information and metrics from Bloomberg. In addition, we access and evaluate financial information regarding Bloomberg from other private sources, as well as publicly available data. As Lessee We are a tenant under a long-term ground lease at our Flushing property, which expires in 2027 and has one 10 -year extension option. Future lease payments under this operating lease, excluding the extension option, are as follows: (Amounts in thousands) Year Ending December 31, Amount 2018 $ 800 2019 800 2020 800 2021 800 2022 800 Thereafter 3,267 Rent expense was $746,000 in each of the years ended December 31, 2017 , 2016 and 2015 . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION We account for stock-based compensation in accordance with ASC 718. Our 2016 Omnibus Stock Plan (the “Plan”) provides for grants of incentive and non-qualified stock options, restricted stock, stock appreciation rights, deferred stock units (“DSUs”) and performance shares, as defined, to the directors, officers and employees of the Company and Vornado. On May 18, 2017, we granted each of the members of our Board of Directors 183 DSUs with a grant date fair value of $56,250 per grant, or $394,000 in the aggregate. The DSUs entitle the holders to receive shares of the Company’s common stock without the payment of any consideration. The DSUs vested immediately and accordingly, were expensed on the date of grant, but the shares of common stock underlying the DSUs are not deliverable to the grantee until the grantee is no longer serving on the Company’s Board of Directors. As of December 31, 2017, there were 8,692 DSUs outstanding and 497,095 shares were available for future grant under the Plan. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Insurance We maintain general liability insurance with limits of $300,000,000 per occurrence and per property, and all-risk property and rental value insurance coverage with limits of $1.7 billion per occurrence, including coverage for acts of terrorism, with sub-limits for certain perils such as floods and earthquakes on each of our properties. Fifty Ninth Street Insurance Company, LLC (“FNSIC”), our wholly owned consolidated subsidiary, acts as a direct insurer for coverage for acts of terrorism, including nuclear, biological, chemical and radiological (“NBCR”) acts, as defined by the Terrorism Risk Insurance Program Reauthorization Act, which expires in December 2020 . Coverage for acts of terrorism (including NBCR acts) is up to $1.7 billion per occurrence and in the aggregate. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third party insurance companies and the Federal government with no exposure to FNSIC. For NBCR acts, FNSIC is responsible for a $293,000 deductible ( $306,000 effective January 1, 2018) and 17% of the balance ( 18% effective January 1, 2018) of a covered loss, and the Federal government is responsible for the remaining 83% ( 82% effective January 1, 2018) of a covered loss. We are ultimately responsible for any loss incurred by FNSIC. We continue to monitor the state of the insurance market and the scope and costs of coverage for acts of terrorism. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for deductibles and losses in excess of our insurance coverage, which could be material. Our mortgage loans are non-recourse to us and contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable costs in the future. Further, if lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance our properties. Tenant Matters On April 4, 2017, Sears closed its 195,000 square foot store at our Rego Park I property. Annual revenue from Sears is approximately $10,600,000 , under a lease which expires in March 2021. In its 2016 annual report on Form 10-K, Sears indicated that substantial doubt exists related to its ability to continue as a going concern. There are $3,865,000 of receivables arising from the straight-lining of rent and $406,000 of unamortized deferred leasing costs on our consolidated balance sheet related to the Sears lease as of December 31, 2017 which we will continue to assess for recoverability. On September 19, 2017, the bankruptcy court approved the terms of an order stipulation between Le Cirque, a restaurant operator which leases 13,000 square feet at our 731 Lexington Avenue property (approximately $1,200,000 of annual revenue), and the Company which terminated the lease on January 5, 2018 (original lease expiration was May 2021). As a result, we began accelerating depreciation and amortization of approximately $2,780,000 of tenant improvements and deferred leasing costs over the new lease term, of which approximately $2,650,000 was recognized in the year ended December 31, 2017 and approximately $130,000 will be recognized in the quarter ending March 31, 2018. ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 10. COMMITMENTS AND CONTINGENCIES - continued Rego Park I Litigation In June 2014, Sears Roebuck and Co. (“Sears”) filed a lawsuit in the Supreme Court of the State of New York against Vornado and us (and certain of our subsidiaries) with regard to space that Sears leases at our Rego Park I property alleging that the defendants are liable for harm that Sears has suffered as a result of (a) water intrusions into the premises, (b) two fires in February 2014 that caused damages to those premises, and (c) alleged violations of the Americans with Disabilities Act in the premises’ parking garage. Sears asserted various causes of actions for damages and sought to compel compliance with landlord’s obligations to repair the premises and to provide security, and to compel us to abate a nuisance that Sears claims was a cause of the water intrusions into its premises. In addition to injunctive relief, Sears sought, among other things, damages of not less than $4 million and future damages it estimated would not be less than $25 million . In March 2016, Sears withdrew its claim for future damages leaving a remaining claim for property damages, which we estimate to be approximately $650,000 based on information provided by Sears. We intend to defend the remaining claim vigorously. The amount or range of reasonably possible losses, if any, is not expected to be greater than $650,000 . Paramus In 2001, we leased 30.3 acres of land located in Paramus, New Jersey to IKEA Property, Inc. The lease has a purchase option in 2021 for $75,000,000 . The property is encumbered by a $68,000,000 interest-only mortgage loan with a fixed rate of 2.90% , which matures on October 5, 2018. The annual triple-net rent is the sum of $700,000 plus the amount of debt service on the mortgage loan. If the purchase option is exercised, we will receive net cash proceeds of approximately $7,000,000 and recognize a gain on sale of land of approximately $60,000,000 . If the purchase option is not exercised, the triple-net rent for the last 20 years would include debt service sufficient to fully amortize $68,000,000 over the remaining 20 years lease term. Letters of Credit Approximately $1,474,000 of standby letters of credit were issued and outstanding as of December 31, 2017 . Other In October 2015, the New York City Department of Finance (“NYC DOF”) issued a Notice of Determination to us assessing an additional $22,910,000 of transfer taxes (including interest and penalties as of December 31, 2017 ) in connection with the sale of Kings Plaza Regional Shopping Center in November 2012. We believe that the NYC DOF’s claim is without merit and intend to vigorously contest this assessment. We have determined that the likelihood of a loss related to this issue is not probable and, after consultation with legal counsel, that the outcome of this assessment is not expected to have a material adverse effect on our financial position, results of operations or cash flows. We received approximately $396,000 , $825,000 and $2,100,000 from bankruptcy recoveries during the years ended December 31, 2017 , 2016 and 2015, respectively, which is included as “interest and other income, net” in our consolidated statements of income. There are various other legal actions against us in the ordinary course of business. In our opinion, the outcome of such matters in the aggregate will not have a material effect on our financial position, results of operations or cash flows. |
Multiemployer Benefit Plans
Multiemployer Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Multiemployer Plans [Abstract] | |
Multiemployer Benefit Plans | MULTIEMPLOYER BENEFIT PLANS Our subsidiaries make contributions to certain multiemployer defined benefit plans (“Multiemployer Pension Plans”) and health plans (“Multiemployer Health Plans”) for our union represented employees, pursuant to the respective collective bargaining agreements. ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 11. MULTIEMPLOYER BENEFIT PLANS - continued Multiemployer Pension Plans Multiemployer Pension Plans differ from single-employer pension plans in that (i) contributions to multiemployer plans may be used to provide benefits to employees of other participating employers and (ii) if other participating employers fail to make their contributions, each of our subsidiaries may be required to bear their pro rata share of unfunded obligations. If a participating subsidiary withdraws from a plan in which it participates, it may be subject to a withdrawal liability. As of December 31, 2017 , our subsidiaries’ participation in these plans were not significant to our consolidated financial statements. In the years ended December 31, 2017 , 2016 and 2015 our subsidiaries contributed $162,000 , $147,000 and $144,000 , respectively, towards Multiemployer Pension Plans. Our subsidiaries’ contributions did not represent more than 5% of total employer contributions in any of these plans for the years ended December 31, 2017 , 2016 and 2015 . Multiemployer Health Plans Multiemployer Health Plans in which our subsidiaries participate provide health benefits to eligible active and retired employees. In the years ended December 31, 2017 , 2016 and 2015 our subsidiaries contributed $619,000 , $539,000 and $554,000 , respectively, towards these plans. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted income per share, including a reconciliation of net income and the number of shares used in computing basic and diluted income per share. Basic income per share is determined using the weighted average shares of common stock (including DSUs) outstanding during the period. Diluted income per share is determined using the weighted average shares of common stock (including DSUs) outstanding during the period, and assumes all potentially dilutive securities were converted into common shares at the earliest date possible. There were no potentially dilutive securities outstanding during the years ended December 31, 2017 , 2016 and 2015 . For the Year Ended December 31, (Amounts in thousands, except share and per share amounts) 2017 2016 2015 Net income $ 80,509 $ 86,477 $ 76,907 Weighted average shares outstanding – basic and diluted 5,115,501 5,114,084 5,112,352 Net income per common share – basic and diluted $ 15.74 $ 16.91 $ 15.04 |
Summary Of Quarterly Results (U
Summary Of Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Summary of Quarterly Results (Unaudited) | SUMMARY OF QUARTERLY RESULTS (UNAUDITED) Net Income Per Common Share (1) (Amounts in thousands, except per share amounts) Revenues Net Income Basic Diluted 2017 December 31 $ 58,061 $ 17,883 $ 3.50 $ 3.50 September 30 58,094 20,299 3.97 3.97 June 30 57,190 20,660 4.04 4.04 March 31 57,229 21,667 4.24 4.24 2016 December 31 $ 57,253 $ 21,655 $ 4.23 $ 4.23 September 30 57,120 21,036 4.11 4.11 June 30 57,005 21,767 4.26 4.26 March 31 55,558 22,019 4.31 4.31 _______________________ (1) The total for the year may differ from the sum of the quarters as a result of weighting. |
Schedule II_ Valuation and Qual
Schedule II: Valuation and Qualifying accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II: Valuation and Qualifying Accounts | ALEXANDER’S, INC. AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Amounts in thousands) Column A Column B Column C Column D Column E Description Balance at Beginning of Year Additions: Charged Against Operations Deductions: Uncollectible Accounts Written Off Balance Allowance for doubtful accounts: Year Ended December 31, 2017 $ 1,473 $ 53 $ (25 ) $ 1,501 Year Ended December 31, 2016 $ 918 $ 557 $ (2 ) $ 1,473 Year Ended December 31, 2015 $ 1,544 $ (314 ) $ (312 ) $ 918 |
Schedule III_ Real Estate and A
Schedule III: Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2017 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III: Real Estate and Accumulated Depreciation | ALEXANDER’S, INC. AND SUBSIDIARIES SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION December 31, 2017 (Amounts in thousands) COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F COLUMN G COLUMN H COLUMN I Gross Amount at Which Life on which Depreciation in Latest Income Statement is Computed Initial Cost to Company(2) Costs Capitalized Subsequent to Acquisition Carried at Close of Period Accumulated Depreciation and Amortization Buildings and Leasehold Improvements Buildings and Leasehold Improvements Development and Construction In Progress Date of Construction Date Acquired (2) Description Encumbrances (1) Land Land Total (3) New York, NY Rego Park I $ 78,246 $ 1,647 $ 8,953 $ 53,390 $ 1,647 $ 62,268 $ 75 $ 63,990 $ 33,073 1959 1992 3-39 years Rego Park II 256,194 3,127 1,467 388,890 3,127 390,118 239 393,484 83,963 2009 1992 3-40 years The Alexander apartment tower — — — 119,112 — 119,112 — 119,112 9,856 2016 1992 3-39 years Rego Park III — 779 — 3,740 779 503 3,237 4,519 228 N/A 1992 5-15 years Flushing — — 1,660 (107 ) — 1,553 — 1,553 968 1975 (4) 1992 N/A Lexington Avenue 850,000 14,432 12,355 416,002 27,497 415,292 — 442,789 154,956 2003 1992 9-39 years Paramus, NJ 68,000 1,441 — 10,313 11,754 — — 11,754 — N/A 1992 N/A Other Properties — 167 1,804 (1,804 ) 167 — — 167 — N/A 1992 N/A TOTAL $ 1,252,440 $ 21,593 $ 26,239 $ 989,536 $ 44,971 $ 988,846 $ 3,551 $ 1,037,368 $ 283,044 (1) Excludes deferred debt issuance costs, net of $12,218. (2) Initial cost is as of May 15, 1992 (the date on which the Company commenced its real estate operations). (3) The net basis of the Company’s assets and liabilities for tax purposes is approximately $199,268 lower than the amount reported for financial statement purposes. (4) Represents the date the lease was acquired. ALEXANDER’S, INC. AND SUBSIDIARIES SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Amounts in thousands) December 31, 2017 2016 2015 REAL ESTATE: Balance at beginning of period $ 1,033,551 $ 1,029,472 $ 993,927 Changes during the period: Land — — — Buildings and leasehold improvements 3,046 12,464 112,538 Development and construction in progress 771 (6,706 ) (65,803 ) 1,037,368 1,035,230 1,040,662 Less: Fully depreciated assets — (1,679 ) (11,190 ) Balance at end of period $ 1,037,368 $ 1,033,551 $ 1,029,472 ACCUMULATED DEPRECIATION: Balance at beginning of period $ 252,737 $ 225,533 $ 210,025 Additions charged to operating expenses 30,307 28,883 26,698 283,044 254,416 236,723 Less: Fully depreciated assets — (1,679 ) (11,190 ) Balance at end of period $ 283,044 $ 252,737 $ 225,533 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries. All intercompany amounts have been eliminated. Our financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Certain prior year balances have been reclassified in order to conform to current year presentation. |
Recently Issued Accounting Literature | In May 2014, the Financial Accounting Standards Board (“FASB”) issued an update (“ASU 2014-09”) establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). ASU 2014-09, as amended by subsequent ASUs on the topic, establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. This standard, which is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2017, requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. We adopted this standard effective January 1, 2018 using the modified retrospective approach, which requires applying the new standard to all existing contracts not yet completed as of the effective date and recording a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. We have completed our evaluation of the standard’s impact on our revenue streams. The adoption of this standard is not expected to have a material impact on our consolidated financial statements. In January 2016, the FASB issued an update (“ASU 2016-01”) Recognition and Measurement of Financial Assets and Financial Liabilities to ASC Topic 825, Financial Instruments (“ASC 825”). ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this standard effective January 1, 2018 using the modified retrospective approach. While the adoption of this standard requires us to continue to measure “marketable securities” at fair value at each reporting date, the changes in fair value will be recognized in current period earnings as opposed to “other comprehensive (loss) income.” As a result, on January 1, 2018 we recorded an increase to retained earnings of $5,156,000 to recognize the unrealized gains previously recorded within “accumulated other comprehensive income.” Subsequent changes in the fair value of our marketable securities will be recorded to “interest and other income, net.” In February 2016, the FASB issued an update (“ASU 2016-02”) establishing ASC Topic 842, Leases , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase. Lessees are required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. Lessees will recognize expense based on the effective interest method for finance leases or on a straight-line basis for operating leases. The accounting applied by the lessor is largely unchanged from that applied under the existing lease standard. We are currently evaluating the overall impact of the adoption of ASU 2016-02 on our consolidated financial statements and believe that the standard will more significantly impact the accounting for leases in which we are a lessee. We will be required to record a right-of-use asset and lease liability for our Flushing property ground lease, equal to the present value of the remaining minimum lease payments, and will continue to recognize expense on a straight-line basis upon adoption of this standard. ASU 2016-02 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2018, with early adoption permitted. We will adopt this standard effective January 1, 2019 using the modified retrospective approach and will elect to use the practical expedients provided by this standard. In March 2016, the FASB issued an update (“ASU 2016-09”) Improvements to Employee Share-Based Payment Accounting to ASC Topic 718, Compensation - Stock Compensation (“ASC 718”). ASU 2016-09 amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 was effective for interim and annual reporting periods in fiscal years beginning after December 15, 2016. The adoption of this update as of January 1, 2017 did not have a material impact on our consolidated financial statements. ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued In August 2016, the FASB issued an update (“ASU 2016-15”) Classification of Certain Cash Receipts and Cash Payments to ASC Topic 230, Statement of Cash Flows . ASU 2016-15 clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice with respect to (i) debt prepayment or debt extinguishment costs, (ii) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (iii) contingent consideration payments made after a business combination, (iv) proceeds from the settlement of insurance claims, (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (vi) distributions received from equity method investees, (vii) beneficial interests in securitization transactions, and (viii) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted. We elected to early adopt ASU 2016-15 effective January 1, 2017. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued an update (“ASU 2016-18”) Restricted Cash to ASC Topic 230, Statement of Cash Flows . ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances on the statement of cash flows upon adoption of this standard. ASU 2016-18 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted. We elected to early adopt ASU 2016-18 effective January 1, 2017, with retrospective application to our consolidated statements of cash flows. Accordingly, the consolidated statements of cash flows present a reconciliation of the changes in cash and cash equivalents and restricted cash. Restricted cash primarily consists of cash held in a non-interest bearing escrow account in connection with our Rego Park I 100% cash collateralized mortgage, as well as security deposits and other cash escrowed under loan agreements for debt service, real estate taxes, property insurance and capital improvements. In February 2017, the FASB issued an update (“ASU 2017-05”) Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets to ASC Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets . ASU 2017-05 clarifies the scope of recently established guidance on nonfinancial asset derecognition, as well as the accounting for partial sales of nonfinancial assets. This update conforms the derecognition guidance on nonfinancial assets with the model for transactions in ASC 606. ASU 2017-05 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. The adoption of this standard on January 1, 2018 is not expected to have an impact on our consolidated financial statements. In August 2017, the FASB issued an update (“ASU 2017-12”) Targeted Improvements to Accounting for Hedging Activities to ASC Topic 815, Derivatives and Hedging (“ASC 815”). ASU 2017-12 amends the hedge accounting recognition and presentation requirements in ASC 815. The update is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting and increase transparency as to the scope and results of hedge programs. ASU 2017-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The adoption of this standard on January 1, 2019 is not expected to have a material impact on our consolidated financial statements. |
Real Estate | Real estate is carried at cost, net of accumulated depreciation and amortization. As of December 31, 2017 and 2016, the carrying amount of our real estate, net of accumulated depreciation and amortization, was $754,324,000 and $780,814,000 , respectively. Maintenance and repairs are expensed as incurred. Depreciation requires an estimate by management of the useful life of each property and improvement as well as an allocation of the costs associated with a property to its various components. We capitalize all property operating expenses directly associated with and attributable to, the development and construction of a project, including interest expense. The capitalization period begins when development activities are underway and ends when it is determined that the asset is substantially complete and ready for its intended use, which is typically evidenced by the receipt of a temporary certificate of occupancy. General and administrative costs are expensed as incurred. ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Our properties and related intangible assets, including properties to be developed in the future, are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Estimates of future cash flows are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. For our development properties, estimates of future cash flows also include all future expenditures necessary to develop the asset, including interest payments that will be capitalized as part of the cost of the asset. An impairment loss is recognized only if the carrying amount of the asset is not recoverable and is measured based on the excess of the property’s carrying amount over its estimated fair value. If our estimates of future cash flows, anticipated holding periods, or fair values change, based on market conditions or otherwise, our evaluation of impairment charges may be different and such differences could be material to our consolidated financial statements. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Plans to hold properties over longer periods decrease the likelihood of recording impairment losses. |
Cash and Cash Equivalents | Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less and are carried at cost, which approximates fair value, due to their short-term maturities. The majority of our cash and cash equivalents consist of (i) deposits at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation limit, (ii) United States Treasury Bills, (iii) money market funds, which invest in United States Treasury Bills and (iv) certificates of deposit placed through an account registry service (“CDARS”). To date we have not experienced any losses on our invested cash. |
Short-term Investments | Short-term investments consist of United States Treasury Bills with original maturities greater than three but less than six months. These highly liquid investments are classified as available-for-sale and are presented at fair value on our consolidated balance sheets. Prior to January 1, 2018, unrealized gains and losses resulting from these investments were included in “other comprehensive (loss) income.” Effective January 1, 2018, changes in the fair value of these investments are recognized in current period earnings in accordance with ASC 825. |
Restricted Cash | Restricted cash primarily consists of cash held in a non-interest bearing escrow account in connection with our Rego Park I 100% cash collateralized mortgage, as well as security deposits and other cash escrowed under loan agreements for debt service, real estate taxes, property insurance and capital improvements. |
Marketable Securities | Our marketable securities consist of common shares of The Macerich Company (NYSE: MAC) (“Macerich”), which are classified as available-for-sale. Available-for-sale securities are presented at fair value on our consolidated balance sheets. Prior to January 1, 2018, unrealized gains and losses resulting from the mark-to-market of these securities were included in “other comprehensive (loss) income.” Effective January 1, 2018, changes in the fair value of these securities are recognized in current period earnings in accordance with ASC 825. We evaluate our marketable securities for impairment at the end of each reporting period. If investments have unrealized losses, we evaluate the underlying cause of the decline in value and the estimated recovery period, as well as the severity and duration of the decline. In our evaluation, we consider our ability and intent to hold our investment for a reasonable period of time sufficient for us to recover our cost basis, as well as the near-term prospects for the investment in relation to the severity and duration of the decline. |
Allowance for Doubtful Accounts | We periodically evaluate the collectibility of amounts due from tenants, including the receivable arising from the straight-lining of rents, and maintain an allowance for doubtful accounts ( $1,501,000 and $1,473,000 as of December 31, 2017 and 2016, respectively) for estimated losses resulting from the inability of tenants to make required payments under the lease agreements. We exercise judgment in establishing these allowances and consider payment history and current credit status in developing these estimates. |
Deferred Charges | Direct financing costs are deferred and amortized over the terms of the related agreements as a component of interest and debt expense. Direct costs related to leasing activities are capitalized and amortized on a straight-line basis over the lives of the related leases. All other deferred charges are amortized on a straight-line basis, which approximates the effective interest rate method, in accordance with the terms of the agreements to which they relate. |
Revenue Recognition | We have the following revenue sources and revenue recognition policies: Base Rent – revenue arising from tenant leases. These rents are recognized over the non-cancelable term of the related leases on a straight-line basis, which includes the effects of rent steps and free rent abatements under the leases. We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease. Percentage Rent – revenue arising from retail tenant leases that is contingent upon the sales of tenants exceeding defined thresholds. These rents are recognized only after the contingency has been removed (i.e., when tenant sales thresholds have been achieved). Expense Reimbursements – revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the respective properties. This revenue is recognized in the same periods as the expenses are incurred. Parking Income – revenue arising from the rental of parking space at our properties. This income is recognized as the service is provided. |
Income Taxes | We operate in a manner intended to enable us to continue to qualify as a REIT under Sections 856 – 860 of the Internal Revenue Code of 1986, as amended (the “Code”). In order to maintain our qualification as a REIT under the Code, we must distribute at least 90% of our taxable income to stockholders each year. We distribute to our stockholders 100% of our taxable income and therefore, no provision for Federal income taxes is required. Dividends distributed for the year ended December 31, 2017 were characterized, for federal income taxes, as 99.5% ordinary income and 0.5% long-term capital gain income. Dividends distributed for the year ended December 31, 2016 were characterized, for federal income taxes, as 97.7% ordinary income and 2.3% long-term capital gain income. Dividends distributed for the year ended December 31, 2015 were categorized, for federal income tax purposes, as 97.3% ordinary income and 2.7% long-term capital gain income. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Reconciliation Of Net Income Attributable To Common Stockholders To Estimated Taxable Income | The following table reconciles our net income to estimated taxable income for the years ended December 31, 2017 , 2016 and 2015 . (Unaudited and in thousands) Year Ended December 31, 2017 2016 2015 Net income $ 80,509 $ 86,477 $ 76,907 Straight-line rent adjustments 4,250 2,347 (1,418 ) Depreciation and amortization timing differences 3,084 (14,534 ) 2,477 Other (343 ) 2,975 751 Estimated taxable income $ 87,500 $ 77,265 $ 78,717 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Summary of Fees to Vornado | The following is a summary of fees to Vornado under the various agreements discussed above. Year Ended December 31, (Amounts in thousands) 2017 2016 2015 Company management fees $ 2,800 $ 2,800 $ 2,800 Development fees 29 194 2,435 Leasing fees 1,829 7,401 2,950 Property management, cleaning, engineering and security fees 4,114 4,033 3,614 $ 8,772 $ 14,428 $ 11,799 |
Mortgages Payable (Tables)
Mortgages Payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following is a summary of our outstanding mortgages payable. We may refinance our maturing debt as it comes due or choose to repay it. Interest Rate at December 31, 2017 Balance at December 31, (Amounts in thousands) Maturity (1) 2017 2016 First mortgages secured by: Rego Park I shopping center (100% cash Mar. 2018 0.35% $ 78,246 $ 78,246 collateralized) Paramus Oct. 2018 2.90% 68,000 68,000 Rego Park II shopping center (2) Nov. 2018 3.42% 256,194 259,901 731 Lexington Avenue, retail space (3) Aug. 2022 2.78% 350,000 350,000 731 Lexington Avenue, office space (4) Jun. 2024 2.38% 500,000 300,000 Total 1,252,440 1,056,147 Deferred debt issuance costs, net of accumulated amortization of $6,315 and $6,824, respectively (12,218 ) (3,788 ) $ 1,240,222 $ 1,052,359 (1) Represents the extended maturity where we have the unilateral right to extend. (2) This loan bears interest at LIBOR plus 1.85%. See page for details of our Rego Park II loan participation. (3) This loan bears interest at LIBOR plus 1.40%. (4) This loan bears interest at LIBOR plus 0.90%. |
Schedule of Maturities of Long-term Debt | As of December 31, 2017 , the principal repayments for the next five years and thereafter are as follows: (Amounts in thousands) Year Ending December 31, Amount 2018 $ 402,440 2019 — 2020 — 2021 — 2022 350,000 Thereafter 500,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Financial assets measured at fair value on our consolidated balance sheets as of December 31, 2017 and 2016 consist of marketable securities, which are presented in the table below based on their level in the fair value hierarchy, and an interest rate cap, which fair value was insignificant as of December 31, 2017 and 2016 . There were no financial liabilities measured at fair value as of December 31, 2017 and 2016 . As of December 31, 2017 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 35,156 $ 35,156 — — As of December 31, 2016 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 37,918 $ 37,918 — — |
Fair Value, by Balance Sheet Grouping | The table below summarizes the carrying amount and fair value of these financial instruments as of December 31, 2017 and 2016 . As of December 31, 2017 As of December 31, 2016 Carrying Fair Carrying Fair (Amounts in thousands) Amount Value Amount Value Assets: Cash equivalents $ 273,914 $ 273,914 $ 256,370 $ 256,370 Rego Park II loan participation 198,537 198,000 — — 472,451 471,914 256,370 256,370 Liabilities: Mortgages payable (excluding deferred debt issuance costs, net) $ 1,252,440 $ 1,239,000 $ 1,056,147 $ 1,045,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule Of Future Minimum Payments Receivable For Operating Leases | Future base rental revenue under these non-cancelable operating leases is as follows: (Amounts in thousands) Year Ending December 31, Amount 2018 $ 144,712 2019 138,649 2020 136,536 2021 119,962 2022 111,533 Thereafter 783,019 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future lease payments under this operating lease, excluding the extension option, are as follows: (Amounts in thousands) Year Ending December 31, Amount 2018 $ 800 2019 800 2020 800 2021 800 2022 800 Thereafter 3,267 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted income per share, including a reconciliation of net income and the number of shares used in computing basic and diluted income per share. Basic income per share is determined using the weighted average shares of common stock (including DSUs) outstanding during the period. Diluted income per share is determined using the weighted average shares of common stock (including DSUs) outstanding during the period, and assumes all potentially dilutive securities were converted into common shares at the earliest date possible. There were no potentially dilutive securities outstanding during the years ended December 31, 2017 , 2016 and 2015 . For the Year Ended December 31, (Amounts in thousands, except share and per share amounts) 2017 2016 2015 Net income $ 80,509 $ 86,477 $ 76,907 Weighted average shares outstanding – basic and diluted 5,115,501 5,114,084 5,112,352 Net income per common share – basic and diluted $ 15.74 $ 16.91 $ 15.04 |
Summary Of Quarterly Results (T
Summary Of Quarterly Results (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Summary of Quarterly Results (Unaudited) | Net Income Per Common Share (1) (Amounts in thousands, except per share amounts) Revenues Net Income Basic Diluted 2017 December 31 $ 58,061 $ 17,883 $ 3.50 $ 3.50 September 30 58,094 20,299 3.97 3.97 June 30 57,190 20,660 4.04 4.04 March 31 57,229 21,667 4.24 4.24 2016 December 31 $ 57,253 $ 21,655 $ 4.23 $ 4.23 September 30 57,120 21,036 4.11 4.11 June 30 57,005 21,767 4.26 4.26 March 31 55,558 22,019 4.31 4.31 _______________________ (1) The total for the year may differ from the sum of the quarters as a result of weighting. |
Organization (Details)
Organization (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)ft²apropertyaptunitssegment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Apr. 04, 2017ft² | |
Operating Properties | ||||
Number of properties | property | 7 | |||
Property rentals | $ | $ 152,857 | $ 151,444 | $ 138,688 | |
Number of segments | segment | 1 | |||
Rego Park I | Sears | ||||
Operating Properties | ||||
Area of property (in square feet) | 195,000 | |||
Maturity date | Mar. 1, 2020 | |||
Property rentals | $ | $ 10,600 | |||
Rego Park II | Anchor | ||||
Operating Properties | ||||
Area of property (in square feet) | 609,000 | |||
Rego Park II | Retail space | Toys R Us/ Babies R Us | ||||
Operating Properties | ||||
Area of property (in square feet) | 47,000 | |||
Operating property | 731 Lexington Avenue | ||||
Operating Properties | ||||
Area of property (in square feet) | 1,311,000 | |||
Operating property | 731 Lexington Avenue | Office space | ||||
Operating Properties | ||||
Area of property (in square feet) | 889,000 | |||
Operating property | 731 Lexington Avenue | Retail space | ||||
Operating Properties | ||||
Area of property (in square feet) | 174,000 | |||
Operating property | 731 Lexington Avenue | Retail space | Tenant Occupant | Home Depot | ||||
Operating Properties | ||||
Area of property (in square feet) | 83,000 | |||
Operating property | 731 Lexington Avenue | Retail space | Tenant Occupant | Container Store | ||||
Operating Properties | ||||
Area of property (in square feet) | 34,000 | |||
Operating property | 731 Lexington Avenue | Retail space | Tenant Occupant | Hennes Mauritz | ||||
Operating Properties | ||||
Area of property (in square feet) | 27,000 | |||
Operating property | 731 Lexington Avenue | Residence space | ||||
Operating Properties | ||||
Area of property (in square feet) | 248,000 | |||
Number of property units | aptunits | 105 | |||
Operating property | Rego Park I | ||||
Operating Properties | ||||
Area of property (in square feet) | 343,000 | |||
Operating property | Rego Park I | Tenant Occupant | Anchor | Sears | ||||
Operating Properties | ||||
Area of property (in square feet) | 195,000 | |||
Operating property | Rego Park I | Tenant Occupant | Anchor | Burlington Coat Factory | ||||
Operating Properties | ||||
Area of property (in square feet) | 50,000 | |||
Operating property | Rego Park I | Tenant Occupant | Anchor | Bed Bath and Beyond | ||||
Operating Properties | ||||
Area of property (in square feet) | 46,000 | |||
Operating property | Rego Park I | Tenant Occupant | Anchor | Marshalls | ||||
Operating Properties | ||||
Area of property (in square feet) | 36,000 | |||
Operating property | Rego Park II | Tenant Occupant | Anchor | Costco | ||||
Operating Properties | ||||
Area of property (in square feet) | 145,000 | |||
Operating property | Rego Park II | Tenant Occupant | Anchor | Century 21 | ||||
Operating Properties | ||||
Area of property (in square feet) | 135,000 | |||
Operating property | Rego Park II | Tenant Occupant | Anchor | Kohl's | ||||
Operating Properties | ||||
Area of property (in square feet) | 133,000 | |||
Operating property | Alexander apartment tower | ||||
Operating Properties | ||||
Area of property (in square feet) | 255,000 | |||
Number of property units | aptunits | 312 | |||
Real estate property percentage leased | 94.60% | |||
Operating property | Paramus | Tenant Occupant | Ikea | ||||
Operating Properties | ||||
Area of land | a | 30.3 | |||
Operating property | Flushing property | ||||
Operating Properties | ||||
Area of property (in square feet) | 167,000 | |||
Properties to be developed | Rego Park III | ||||
Operating Properties | ||||
Area of land | 140,000 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 302,543 | $ 308,995 | |
Real estate, net | $ 754,324 | 780,814 | |
Cash and cash equivalent maturity maximum | 3 months | ||
Percentage of cash mortgage collateralized | 100.00% | ||
Allowance for doubtful accounts | $ 1,501 | $ 1,473 | |
Accounting Standards Update 2016-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 5,156 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax Treatment Of Dividend | |||||||||||
Internal taxable income distribution policy (in percentage) | 100.00% | ||||||||||
Differences between book and tax basis | $ 199,268 | $ 199,268 | |||||||||
Reconciliation of Net Income to Estimated Taxable Income | |||||||||||
Net income | $ 17,883 | $ 20,299 | $ 20,660 | $ 21,667 | $ 21,655 | $ 21,036 | $ 21,767 | $ 22,019 | 80,509 | $ 86,477 | $ 76,907 |
Straight-line rent adjustments | 4,250 | 2,347 | (1,418) | ||||||||
Depreciation and amortization timing differences | 3,084 | (14,534) | 2,477 | ||||||||
Other | (343) | 2,975 | 751 | ||||||||
Estimated taxable income | $ 87,500 | $ 77,265 | $ 78,717 | ||||||||
Minimum | |||||||||||
Tax Treatment Of Dividend | |||||||||||
Real estate investment trust distributable income policy (in percentage) | 90.00% | ||||||||||
Ordinary Income | |||||||||||
Tax Treatment Of Dividend | |||||||||||
Payments of dividends net percent | 99.50% | 97.70% | 97.30% | ||||||||
Long Term Capital Gain | |||||||||||
Tax Treatment Of Dividend | |||||||||||
Payments of dividends net percent | 0.50% | 2.30% | 2.70% |
Rego Park II Loan Participati36
Rego Park II Loan Participation - (Narrative) (Details) - USD ($) $ in Thousands | Jul. 28, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Investment In Loan Participation [Line Items] | ||||
Loan participation payment | $ 200,000 | $ 0 | $ 0 | |
Participation Agreement | Rego Park II | ||||
Investment In Loan Participation [Line Items] | ||||
Loan participation payment | $ 200,000 | |||
Interest rate | 3.17% | |||
LIBOR | Participation Agreement | Rego Park II | ||||
Investment In Loan Participation [Line Items] | ||||
Basis spread over LIBOR | 1.60% |
Related Party Transactions (Det
Related Party Transactions (Details) ft² in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2016USD ($) | Dec. 31, 2017USD ($)ft²$ / ft² | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | |
Leasing Agreements | ||||
Receivable arising from the straight-lining of rents | $ 174,713,000 | $ 179,010,000 | ||
Toys R Us/ Babies R Us | ||||
Leasing Agreements | ||||
Tenant improvements | 694,000 | |||
Deferred leasing costs | 257,000 | |||
Receivable arising from the straight-lining of rents | $ 544,000 | |||
Rego Park II | Retail space | Toys R Us/ Babies R Us | ||||
Leasing Agreements | ||||
Area of property (in square feet) | ft² | 47 | |||
Annual revenue attributable to tenant | $ 2,600,000 | |||
Development fees | Alexander apartment tower | ||||
Leasing Agreements | ||||
Fees paid | $ 5,784,000 | |||
Vornado | ||||
Related Party Transaction | ||||
Noncontrolling interest, ownership percentage by parent | 32.40% | |||
Management and Development Agreements | ||||
Management fee agreement value | $ 2,800,000 | |||
Vornado | Toys R Us/ Babies R Us | ||||
Related Party Transaction | ||||
Noncontrolling interest, ownership percentage by parent | 32.50% | |||
Vornado | Property Management Fees | Rego Park II | ||||
Management and Development Agreements | ||||
Property management fee, percent fee | 2.00% | |||
Vornado | Property Management Fees | 731 Lexington Avenue | ||||
Management and Development Agreements | ||||
Property management fee agreement price per square foot | $ / ft² | 0.50 | |||
Vornado | Property Management Fees | 731 Lexington Avenue | Common Area | ||||
Management and Development Agreements | ||||
Property management fee agreement value | $ 306,000 | |||
Property management fee escalation percentage per annum | 3.00% | |||
Vornado | Development fees | ||||
Leasing Agreements | ||||
Fees paid | $ 21,000 | 54,000 | ||
Vornado | Development fees | Alexander apartment tower | ||||
Management and Development Agreements | ||||
Property development fee escalation percentage per annum | 6.00% | |||
Vornado | Leasing fees | ||||
Leasing Agreements | ||||
Lease fee percentage of rent one to ten years | 3.00% | |||
Lease fee percentage of rent eleven to twenty years | 2.00% | |||
Lease fee percentage of rent twenty first to thirty years | 1.00% | |||
Percentage increase lease fee if broker used | 1.00% | |||
Percentage commissions on sale of assets under fifty million | 3.00% | |||
Asset sale commission threshold | $ 50,000,000 | |||
Percentage commissions on sale of assets over fifty million | 1.00% | |||
Fees paid | $ 1,811,000 | 415,000 | ||
Vornado | Management, property management, cleaning and security fees | ||||
Leasing Agreements | ||||
Fees paid | $ 658,000 | $ 428,000 | ||
Mr. Roth, Interstate, David Mandelbaum, and Russell B. Wight, Jr. | ||||
Related Party Transaction | ||||
Noncontrolling interest, ownership percentage by parent | 26.20% | |||
IP & Partners Through Vornado | ||||
Related Party Transaction | ||||
Noncontrolling interest, ownership percentage by parent | 2.30% | |||
Lease Amendment | Bloomberg | ||||
Leasing Agreements | ||||
Leasing commissions expense | $ 8,916,000 | |||
Lease Amendment | Bloomberg | Vornado | ||||
Leasing Agreements | ||||
Leasing commissions expense | 1,716,000 | |||
Third Party Broker | Lease Amendment | Bloomberg | ||||
Leasing Agreements | ||||
Leasing commissions expense | $ 7,200,000 |
Related Party Transactions (Fee
Related Party Transactions (Fees to Vornado) (Details) - Vornado - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of fees to Vornado | |||
Fees to related party | $ 8,772 | $ 14,428 | $ 11,799 |
Company management fees | |||
Summary of fees to Vornado | |||
Fees to related party | 2,800 | 2,800 | 2,800 |
Development fees | |||
Summary of fees to Vornado | |||
Fees to related party | 29 | 194 | 2,435 |
Leasing fees | |||
Summary of fees to Vornado | |||
Fees to related party | 1,829 | 7,401 | 2,950 |
Property management fees and payments for cleaning, engineering and security services | |||
Summary of fees to Vornado | |||
Fees to related party | $ 4,114 | $ 4,033 | $ 3,614 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Marketable Securities [Abstract] | ||||
Investment owned, balance, shares | 535,265 | 535,265 | ||
Economic basis per share (in dollars per share) | $ 56.05 | |||
Available-for-sale securities, amortized cost basis | $ 30,000 | |||
Fair value | $ 35,156 | $ 37,918 | ||
Closing share price (in dollars per share) | $ 65.68 | $ 70.84 | ||
Change in unrealized net loss on available-for-sale securities | $ 2,762 | $ 5,273 | $ 1,455 | |
Investment income, dividend | $ 2,141 |
Mortgages Payable (Narrative) (
Mortgages Payable (Narrative) (Details) | Jun. 01, 2017USD ($)option | May 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||||
Mortgages payable, net of deferred debt issuance costs | $ 1,240,222,000 | $ 1,052,359,000 | ||
731 Lexington Avenue | Office space | Mortgages | ||||
Debt Instrument [Line Items] | ||||
Mortgages payable, net of deferred debt issuance costs | $ 500,000,000 | $ 300,000,000 | ||
Maturity date | Jun. 1, 2020 | |||
Number of one year extension options | option | 4 | |||
Derivative liability, notional amount | $ 500,000,000 | |||
731 Lexington Avenue | Office space | Mortgages | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread over LIBOR | 0.90% | 0.95% | ||
Derivative, cap interest rate | 6.00% |
Mortgages Payable (Outstanding
Mortgages Payable (Outstanding mortgages payable) (Details) - USD ($) $ in Thousands | Jun. 01, 2017 | May 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate | ||||
Percentage of cash mortgage collateralized | 100.00% | |||
Deferred debt issuance costs, net of accumulated amortization of $6,315 and $6,824, respectively | $ (12,218) | |||
Notes Payable (in US dollars) | 1,240,222 | $ 1,052,359 | ||
Mortgages | 731 Lexington Avenue | Office space | ||||
Mortgage Loans on Real Estate | ||||
Maturity date | Jun. 1, 2020 | |||
Notes Payable (in US dollars) | $ 500,000 | $ 300,000 | ||
Mortgages | 731 Lexington Avenue | Office space | LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Basis spread over LIBOR | 0.90% | 0.95% | ||
Mortgages | Secured loan | ||||
Mortgage Loans on Real Estate | ||||
Notes payable, gross | 1,252,440 | 1,056,147 | ||
Deferred debt issuance costs, net of accumulated amortization of $6,315 and $6,824, respectively | (12,218) | (3,788) | ||
Notes Payable (in US dollars) | 1,240,222 | 1,052,359 | ||
Deferred debt issuance costs, accumulated amortization | $ 6,315 | $ 6,824 | ||
Mortgages | Secured loan | Rego Park I | ||||
Mortgage Loans on Real Estate | ||||
Maturity date | Mar. 10, 2018 | |||
Interest rate | 0.35% | |||
Percentage of cash mortgage collateralized | 100.00% | 100.00% | ||
Notes payable, gross | $ 78,246 | $ 78,246 | ||
Mortgages | Secured loan | Paramus | ||||
Mortgage Loans on Real Estate | ||||
Maturity date | Oct. 5, 2018 | |||
Interest rate | 2.90% | |||
Notes payable, gross | $ 68,000 | 68,000 | ||
Mortgages | Secured loan | Rego Park II | ||||
Mortgage Loans on Real Estate | ||||
Maturity date | Nov. 30, 2018 | |||
Interest rate | 3.42% | |||
Notes payable, gross | $ 256,194 | 259,901 | ||
Mortgages | Secured loan | Rego Park II | LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Basis spread over LIBOR | 1.85% | |||
Mortgages | Secured loan | 731 Lexington Avenue | Retail space | ||||
Mortgage Loans on Real Estate | ||||
Maturity date | Aug. 5, 2022 | |||
Interest rate | 2.78% | |||
Notes payable, gross | $ 350,000 | 350,000 | ||
Mortgages | Secured loan | 731 Lexington Avenue | Retail space | LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Basis spread over LIBOR | 1.40% | |||
Mortgages | Secured loan | 731 Lexington Avenue | Office space | ||||
Mortgage Loans on Real Estate | ||||
Maturity date | Jun. 11, 2024 | |||
Interest rate | 2.38% | |||
Notes payable, gross | $ 500,000 | $ 300,000 | ||
Mortgages | Secured loan | 731 Lexington Avenue | Office space | LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Basis spread over LIBOR | 0.90% |
Mortgages Payable (Principal re
Mortgages Payable (Principal repayments for the next five years) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
Net carrying value of real estate collateralizing the debt | $ 640,025 |
Repayments of Long-term Debt | |
2,018 | 402,440 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 350,000 |
Thereafter | $ 500,000 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets and Liabilities Measured at Fair Value) (Details) - Recurring - Marketable securities - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Net Asset (Liability) [Abstract] | ||
Marketable securities | $ 35,156 | $ 37,918 |
Level 1 | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Marketable securities | 35,156 | 37,918 |
Level 2 | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Marketable securities | 0 | 0 |
Level 3 | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Marketable securities | $ 0 | $ 0 |
Fair Value Measurements (Fina44
Fair Value Measurements (Financial Assets and Liabilities Not Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Amount | ||
Assets | ||
Cash equivalents | $ 273,914 | $ 256,370 |
Rego Park II loan participation | 198,537 | 0 |
Assets | 472,451 | 256,370 |
Liabilities [Abstract] | ||
Mortgages payable | 1,252,440 | 1,056,147 |
Fair Value | ||
Assets | ||
Cash equivalents | 273,914 | 256,370 |
Assets | 471,914 | 256,370 |
Liabilities [Abstract] | ||
Mortgages payable | 1,239,000 | 1,045,000 |
Level 2 | Fair Value | ||
Assets | ||
Rego Park II loan participation | $ 198,000 | $ 0 |
Leases (Narratives) (Details)
Leases (Narratives) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($)option | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)option | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
As Lessor | |||||||||||
Additional rent based on percentage of tenant's sales | $ 174 | $ 182 | $ 94 | ||||||||
Revenues | $ 58,061 | $ 58,094 | $ 57,190 | $ 57,229 | $ 57,253 | $ 57,120 | $ 57,005 | $ 55,558 | $ 230,574 | 226,936 | 207,915 |
Minimum | |||||||||||
Leases Lease Terms | |||||||||||
Lease term range as Lessor | 5 years | ||||||||||
Maximum | |||||||||||
Leases Lease Terms | |||||||||||
Lease term range as Lessor | 25 years | ||||||||||
Alexander apartment tower | Residence space | Minimum | |||||||||||
Leases Lease Terms | |||||||||||
Lease term range as Lessor | 1 year | ||||||||||
Alexander apartment tower | Residence space | Maximum | |||||||||||
Leases Lease Terms | |||||||||||
Lease term range as Lessor | 2 years | ||||||||||
Flushing property | |||||||||||
As Lessee | |||||||||||
Rent expense | $ 746 | 746 | 746 | ||||||||
Flushing property | Ten year extension option | |||||||||||
As Lessee | |||||||||||
Lease extension period | 10 years | ||||||||||
Number of extension options | option | 1 | 1 | |||||||||
Customer Concentration Risk | Bloomberg | Sales Revenue Services Net | |||||||||||
As Lessor | |||||||||||
Revenues | $ 105,224 | $ 104,590 | $ 94,468 | ||||||||
Percentage rent contributed by tenant | 46.00% | 46.00% | 45.00% |
Leases (Leases Future Minimum P
Leases (Leases Future Minimum Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Receivable | |
2,018 | $ 144,712 |
2,019 | 138,649 |
2,020 | 136,536 |
2,021 | 119,962 |
2,022 | 111,533 |
Thereafter | 783,019 |
Operating Leases, Future Minimum Payments Due | |
2,018 | 800 |
2,019 | 800 |
2,020 | 800 |
2,021 | 800 |
2,022 | 800 |
Thereafter | $ 3,267 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | May 18, 2017 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Non-option equity instruments, outstanding, number (in shares) | 8,692 | |
Shares available for future grant under the plan (in shares) | 497,095 | |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Non-option equity instruments granted per director (in shares) | 183 | |
Non-option equity instruments grant date fair value per grant | $ 56,250 | |
Non-option equity instruments grant date fair value per grant total | $ 394,000 |
Commitments and Contingencies (
Commitments and Contingencies (Insurance) (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 |
Insurance | ||
Insurance maximum coverage per incident | $ 300,000,000 | |
Insurance maximum coverage per property | 300,000,000 | |
All Risk Property And Rental Value | ||
Insurance | ||
Insurance maximum coverage per incident | 1,700,000,000 | |
Terrorism Coverage Including NBCR | ||
Insurance | ||
Insurance maximum coverage per incident | $ 1,700,000,000 | |
Insurance coverage end date | Dec. 1, 2020 | |
Insurance maximum coverage in aggregate | $ 1,700,000,000 | |
FNSIC | NBCR | ||
Insurance | ||
Insurance deductible | $ 293,000 | |
Self Insured Responsibility (in percentage) | 17.00% | |
Federal Government Responsibility (in percentage) | 83.00% | |
FNSIC | NBCR | Subsequent Event | ||
Insurance | ||
Insurance deductible | $ 306,000 | |
Self Insured Responsibility (in percentage) | 18.00% | |
Federal Government Responsibility (in percentage) | 82.00% |
Commitments and Contingencies49
Commitments and Contingencies (Litigation and contingencies) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2016USD ($) | Feb. 28, 2014fire | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 19, 2017ft² | Apr. 04, 2017ft² | Dec. 31, 2001a | |
Commitments And Contingencies Disclosure | |||||||||||
Property rentals | $ 152,857,000 | $ 151,444,000 | $ 138,688,000 | ||||||||
Straight line rent adjustments | (4,250,000) | (2,347,000) | 1,418,000 | ||||||||
Unamortized deferred leasing costs | $ 45,790,000 | 45,790,000 | 48,387,000 | ||||||||
Depreciation and amortization | 34,925,000 | 33,807,000 | 31,086,000 | ||||||||
Mortgages payable, carrying value | 1,240,222,000 | 1,240,222,000 | 1,052,359,000 | ||||||||
Standby letters of credit, outstanding | 1,474,000 | 1,474,000 | |||||||||
Proceeds from legal settlements | 396,000 | $ 825,000 | $ 2,100,000 | ||||||||
Rego Park I | Sears | |||||||||||
Commitments And Contingencies Disclosure | |||||||||||
Area of property (in square feet) | ft² | 195,000 | ||||||||||
Property rentals | $ 10,600,000 | ||||||||||
Lease termination date | Mar. 1, 2021 | ||||||||||
Straight line rent adjustments | $ 3,865,000 | ||||||||||
Unamortized deferred leasing costs | 406,000 | $ 406,000 | |||||||||
Number of fires | fire | 2 | ||||||||||
Maturity date | Mar. 1, 2020 | ||||||||||
731 Lexington Avenue | Le Cirque | |||||||||||
Commitments And Contingencies Disclosure | |||||||||||
Area of property (in square feet) | ft² | 13,000 | ||||||||||
Property rentals | $ 1,200,000 | ||||||||||
Lease termination date | Jan. 5, 2018 | ||||||||||
Original lease termination date | May 1, 2021 | ||||||||||
Lease, cost | $ 2,780,000 | ||||||||||
Depreciation and amortization | $ 2,650,000 | ||||||||||
731 Lexington Avenue | Le Cirque | Forecast | |||||||||||
Commitments And Contingencies Disclosure | |||||||||||
Depreciation and amortization | $ 130,000 | ||||||||||
Paramus | Ikea | Tenant Occupant | |||||||||||
Commitments And Contingencies Disclosure | |||||||||||
Area of land | a | 30.3 | ||||||||||
Debt instrument, interest rate, stated percentage | 2.90% | 2.90% | |||||||||
Triple-net rent, annual amount | $ 700,000 | ||||||||||
Maturity date | Oct. 5, 2018 | ||||||||||
Mortgages payable, carrying value | $ 68,000,000 | $ 68,000,000 | |||||||||
Paramus | Ikea | Forecast | Tenant Occupant | |||||||||||
Commitments And Contingencies Disclosure | |||||||||||
Property purchase option exercisable by lessee | $ 75,000,000 | ||||||||||
Purchase option not exercised amount included in triple net rent over remainder of lease | 68,000,000 | ||||||||||
Purchase option exercised, net cash proceeds from sale of land | 7,000,000 | ||||||||||
Gain (loss) on disposition of real estate, discontinued operations | $ 60,000,000 | ||||||||||
Lease term range as Lessor | 20 years | ||||||||||
Loan amortization period | 20 years | ||||||||||
The Kings Plaza Regional Shopping Center | |||||||||||
Commitments And Contingencies Disclosure | |||||||||||
Loss contingency, damages sought, value | $ 22,910,000 | ||||||||||
Minimum | |||||||||||
Commitments And Contingencies Disclosure | |||||||||||
Lease term range as Lessor | 5 years | ||||||||||
Minimum | Rego Park I | Sears | |||||||||||
Commitments And Contingencies Disclosure | |||||||||||
Loss contingency, damages sought, value | $ 4,000,000 | ||||||||||
Maximum | |||||||||||
Commitments And Contingencies Disclosure | |||||||||||
Lease term range as Lessor | 25 years | ||||||||||
Estimated Future Damages | Rego Park I | Sears | |||||||||||
Commitments And Contingencies Disclosure | |||||||||||
Loss contingency, damages sought, value | $ 650,000 | ||||||||||
Estimated Future Damages | Minimum | Rego Park I | Sears | |||||||||||
Commitments And Contingencies Disclosure | |||||||||||
Loss contingency, damages sought, value | $ 25,000,000 | ||||||||||
Estimated Future Damages | Maximum | Rego Park I | Sears | |||||||||||
Commitments And Contingencies Disclosure | |||||||||||
Loss contingency, estimate of possible loss | $ 650,000 | $ 650,000 |
Multiemployer Benefit Plans (De
Multiemployer Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Multiemployer Plans | |||
Multiemployer plans, period contributions, significance of contributions | false | ||
Multiemployer Pension Plans | |||
Multiemployer Plans | |||
Multiemployer Plan, Contributions by Employer | $ 162 | $ 147 | $ 144 |
Multiemployer Health Plans | |||
Multiemployer Plans | |||
Multiemployer Plan, Contributions by Employer | $ 619 | $ 539 | $ 554 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 17,883 | $ 20,299 | $ 20,660 | $ 21,667 | $ 21,655 | $ 21,036 | $ 21,767 | $ 22,019 | $ 80,509 | $ 86,477 | $ 76,907 |
Weighted average shares outstanding - basic and diluted (in shares) | 5,115,501 | 5,114,084 | 5,112,352 | ||||||||
Net income per common share - basic and diluted (in dollars per share) | $ 15.74 | $ 16.91 | $ 15.04 |
Summary Of Quarterly Results 52
Summary Of Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenues | $ 58,061 | $ 58,094 | $ 57,190 | $ 57,229 | $ 57,253 | $ 57,120 | $ 57,005 | $ 55,558 | $ 230,574 | $ 226,936 | $ 207,915 |
Net income | $ 17,883 | $ 20,299 | $ 20,660 | $ 21,667 | $ 21,655 | $ 21,036 | $ 21,767 | $ 22,019 | $ 80,509 | $ 86,477 | $ 76,907 |
Net Income Per Common Share - Basic (in dollars per share) | $ 3.50 | $ 3.97 | $ 4.04 | $ 4.24 | $ 4.23 | $ 4.11 | $ 4.26 | $ 4.31 | |||
Net Income Per Common Share - Diluted (in dollars per share) | $ 3.50 | $ 3.97 | $ 4.04 | $ 4.24 | $ 4.23 | $ 4.11 | $ 4.26 | $ 4.31 |
Schedule II_ Valuation and Qu53
Schedule II: Valuation and Qualifying accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Year | $ 1,473 | $ 918 | $ 1,544 |
Additions: Charged Against Operations | 53 | 557 | (314) |
Deductions: Uncollectible Accounts Written Off | (25) | (2) | (312) |
Balance at End of Year | $ 1,501 | $ 1,473 | $ 918 |
Schedule III_ Real estate and54
Schedule III: Real estate and Accumulated depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
REAL ESTATE: | ||||
Encumbrances | $ 1,252,440 | |||
Initial cost of Land | 21,593 | |||
Initial cost of Building, Leaseholds and Leasehold improvements | 26,239 | |||
Costs capitalized subsequent to acquisition | 989,536 | |||
Carrying amount of Land | 44,971 | |||
Carrying amount of Buildings and Leasehold improvements | 988,846 | |||
Development and Construction in progress | 3,551 | |||
Total | 1,037,368 | $ 1,033,551 | $ 1,029,472 | $ 993,927 |
Accumulated Depreciation and Amortization | 283,044 | $ 252,737 | $ 225,533 | $ 210,025 |
Deferred debt issuance costs, net | 12,218 | |||
Differences between book and tax basis | 199,268 | |||
Other Properties | ||||
REAL ESTATE: | ||||
Encumbrances | 0 | |||
Initial cost of Land | 167 | |||
Initial cost of Building, Leaseholds and Leasehold improvements | 1,804 | |||
Costs capitalized subsequent to acquisition | (1,804) | |||
Carrying amount of Land | 167 | |||
Carrying amount of Buildings and Leasehold improvements | 0 | |||
Development and Construction in progress | 0 | |||
Total | 167 | |||
Accumulated Depreciation and Amortization | $ 0 | |||
Date acquired | 1,992 | |||
New York | Rego Park I | ||||
REAL ESTATE: | ||||
Encumbrances | $ 78,246 | |||
Initial cost of Land | 1,647 | |||
Initial cost of Building, Leaseholds and Leasehold improvements | 8,953 | |||
Costs capitalized subsequent to acquisition | 53,390 | |||
Carrying amount of Land | 1,647 | |||
Carrying amount of Buildings and Leasehold improvements | 62,268 | |||
Development and Construction in progress | 75 | |||
Total | 63,990 | |||
Accumulated Depreciation and Amortization | $ 33,073 | |||
Date of construction | 1,959 | |||
Date acquired | 1,992 | |||
New York | Rego Park I | Minimum | ||||
REAL ESTATE: | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
New York | Rego Park I | Maximum | ||||
REAL ESTATE: | ||||
Property, Plant and Equipment, Useful Life | 39 years | |||
New York | Rego Park II | Retail space | ||||
REAL ESTATE: | ||||
Encumbrances | $ 256,194 | |||
Initial cost of Land | 3,127 | |||
Initial cost of Building, Leaseholds and Leasehold improvements | 1,467 | |||
Costs capitalized subsequent to acquisition | 388,890 | |||
Carrying amount of Land | 3,127 | |||
Carrying amount of Buildings and Leasehold improvements | 390,118 | |||
Development and Construction in progress | 239 | |||
Total | 393,484 | |||
Accumulated Depreciation and Amortization | $ 83,963 | |||
Date of construction | 2,009 | |||
Date acquired | 1,992 | |||
New York | Rego Park II | Retail space | Minimum | ||||
REAL ESTATE: | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
New York | Rego Park II | Retail space | Maximum | ||||
REAL ESTATE: | ||||
Property, Plant and Equipment, Useful Life | 40 years | |||
New York | Alexander apartment tower | ||||
REAL ESTATE: | ||||
Encumbrances | $ 0 | |||
Initial cost of Land | 0 | |||
Initial cost of Building, Leaseholds and Leasehold improvements | 0 | |||
Costs capitalized subsequent to acquisition | 119,112 | |||
Carrying amount of Land | 0 | |||
Carrying amount of Buildings and Leasehold improvements | 119,112 | |||
Development and Construction in progress | 0 | |||
Total | 119,112 | |||
Accumulated Depreciation and Amortization | $ 9,856 | |||
Date of construction | 2,016 | |||
Date acquired | 1,992 | |||
New York | Alexander apartment tower | Minimum | ||||
REAL ESTATE: | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
New York | Alexander apartment tower | Maximum | ||||
REAL ESTATE: | ||||
Property, Plant and Equipment, Useful Life | 39 years | |||
New York | Rego Park III | ||||
REAL ESTATE: | ||||
Encumbrances | $ 0 | |||
Initial cost of Land | 779 | |||
Initial cost of Building, Leaseholds and Leasehold improvements | 0 | |||
Costs capitalized subsequent to acquisition | 3,740 | |||
Carrying amount of Land | 779 | |||
Carrying amount of Buildings and Leasehold improvements | 503 | |||
Development and Construction in progress | 3,237 | |||
Total | 4,519 | |||
Accumulated Depreciation and Amortization | $ 228 | |||
Date acquired | 1,992 | |||
New York | Rego Park III | Minimum | ||||
REAL ESTATE: | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
New York | Rego Park III | Maximum | ||||
REAL ESTATE: | ||||
Property, Plant and Equipment, Useful Life | 15 years | |||
New York | Flushing property | ||||
REAL ESTATE: | ||||
Encumbrances | $ 0 | |||
Initial cost of Land | 0 | |||
Initial cost of Building, Leaseholds and Leasehold improvements | 1,660 | |||
Costs capitalized subsequent to acquisition | (107) | |||
Carrying amount of Land | 0 | |||
Carrying amount of Buildings and Leasehold improvements | 1,553 | |||
Development and Construction in progress | 0 | |||
Total | 1,553 | |||
Accumulated Depreciation and Amortization | $ 968 | |||
Date of construction | 1,975 | |||
Date acquired | 1,992 | |||
New York | Lexington Avenue | ||||
REAL ESTATE: | ||||
Encumbrances | $ 850,000 | |||
Initial cost of Land | 14,432 | |||
Initial cost of Building, Leaseholds and Leasehold improvements | 12,355 | |||
Costs capitalized subsequent to acquisition | 416,002 | |||
Carrying amount of Land | 27,497 | |||
Carrying amount of Buildings and Leasehold improvements | 415,292 | |||
Development and Construction in progress | 0 | |||
Total | 442,789 | |||
Accumulated Depreciation and Amortization | $ 154,956 | |||
Date of construction | 2,003 | |||
Date acquired | 1,992 | |||
New York | Lexington Avenue | Minimum | ||||
REAL ESTATE: | ||||
Property, Plant and Equipment, Useful Life | 9 years | |||
New York | Lexington Avenue | Maximum | ||||
REAL ESTATE: | ||||
Property, Plant and Equipment, Useful Life | 39 years | |||
New Jersey | Paramus | ||||
REAL ESTATE: | ||||
Encumbrances | $ 68,000 | |||
Initial cost of Land | 1,441 | |||
Initial cost of Building, Leaseholds and Leasehold improvements | 0 | |||
Costs capitalized subsequent to acquisition | 10,313 | |||
Carrying amount of Land | 11,754 | |||
Carrying amount of Buildings and Leasehold improvements | 0 | |||
Development and Construction in progress | 0 | |||
Total | 11,754 | |||
Accumulated Depreciation and Amortization | $ 0 | |||
Date acquired | 1,992 |
Schedule III_ Real Estate and55
Schedule III: Real Estate and Accumulated Depreciation (Rollforward of Real Estate and Accumulated Deprecation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REAL ESTATE: | |||
Balance at beginning of period | $ 1,033,551 | $ 1,029,472 | $ 993,927 |
Subtotal real estate | 1,037,368 | 1,035,230 | 1,040,662 |
Less: Fully depreciated assets | 0 | (1,679) | (11,190) |
Balance at end of the period | 1,037,368 | 1,033,551 | 1,029,472 |
ACCUMULATED DEPRECIATION: | |||
Balance at beginning of period | 252,737 | 225,533 | 210,025 |
Additions charged to operating expenses | 30,307 | 28,883 | 26,698 |
Subtotal of accumulated depreciation | 283,044 | 254,416 | 236,723 |
Less: Fully depreciated assets | 0 | (1,679) | (11,190) |
Balance at end of the period | 283,044 | 252,737 | 225,533 |
Land | |||
REAL ESTATE: | |||
Changes during the period | 0 | 0 | 0 |
Buildings and leasehold improvements | |||
REAL ESTATE: | |||
Changes during the period | 3,046 | 12,464 | 112,538 |
Development and construction in progress | |||
REAL ESTATE: | |||
Changes during the period | $ 771 | ||
Changes during the period | $ (6,706) | $ (65,803) |