Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ALX | |
Entity Registrant Name | ALEXANDERS INC | |
Entity Central Index Key | 3,499 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 5,107,290 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Real estate, at cost: | ||
Land | $ 44,971 | $ 44,971 |
Buildings and leasehold improvements | 976,342 | 988,846 |
Development and construction in progress | 3,695 | 3,551 |
Total | 1,025,008 | 1,037,368 |
Accumulated depreciation and amortization | (283,885) | (283,044) |
Real estate, net | 741,123 | 754,324 |
Cash and cash equivalents | 293,840 | 307,536 |
Restricted cash | 6,243 | 85,743 |
Rego Park II loan participation | 197,018 | 198,537 |
Marketable securities | 30,419 | 35,156 |
Tenant and other receivables, net of allowance for doubtful accounts of $1,433 and $1,501, respectively | 3,022 | 2,693 |
Receivable arising from the straight-lining of rents | 172,675 | 174,713 |
Deferred leasing costs, net, including unamortized leasing fees to Vornado of $33,108 and $35,152, respectively | 43,234 | 45,790 |
Other assets | 36,683 | 27,903 |
Total assets | 1,524,257 | 1,632,395 |
LIABILITIES AND EQUITY | ||
Mortgages payable, net of deferred debt issuance costs | 1,162,632 | 1,240,222 |
Amounts due to Vornado | 434 | 2,490 |
Accounts payable and accrued expenses | 41,873 | 42,827 |
Other liabilities | 13,147 | 2,901 |
Total liabilities | 1,218,086 | 1,288,440 |
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 shares | 5,173 | 5,173 |
Additional capital | 31,971 | 31,577 |
Retained earnings | 269,525 | 302,543 |
Accumulated other comprehensive (loss) income | (130) | 5,030 |
Equity before treasury stock | 306,539 | 344,323 |
Treasury stock: 66,160 shares, at cost | (368) | (368) |
Total equity | 306,171 | 343,955 |
Total liabilities and equity | $ 1,524,257 | $ 1,632,395 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,433 | $ 1,501 |
Unamortized leasing fees to Vornado | $ 33,108 | $ 35,152 |
Preferred stock: par value per share (in usd 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 usd 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 | 5,107,290 |
Treasury stock: shares | 66,160 | 66,160 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
REVENUES | ||||
Property rentals | $ 38,618 | $ 38,264 | $ 76,859 | $ 76,537 |
Expense reimbursements | 19,635 | 18,926 | 39,274 | 37,882 |
Total revenues | 58,253 | 57,190 | 116,133 | 114,419 |
EXPENSES | ||||
Operating, including fees to Vornado of $1,109, $1,091, $2,275 and $2,219, respectively | 21,511 | 20,744 | 43,788 | 41,665 |
Depreciation and amortization | 8,700 | 8,138 | 16,983 | 16,183 |
General and administrative, including management fees to Vornado of $595 and $1,190 in each three and six month period, respectively | 1,689 | 1,696 | 2,950 | 2,852 |
Total expenses | 31,900 | 30,578 | 63,721 | 60,700 |
OPERATING INCOME | 26,353 | 26,612 | 52,412 | 53,719 |
Interest and other income, net | 1,730 | 1,297 | 4,768 | 2,024 |
Interest and debt expense | (10,945) | (7,255) | (20,774) | (13,415) |
Change in fair value of marketable securities (see Note 7) | 433 | 0 | (4,737) | 0 |
Income before income taxes | 17,571 | 20,654 | 31,669 | 42,328 |
Income tax (expense) benefit | (1) | 6 | (2) | (1) |
Income from continuing operations | 17,570 | 20,660 | 31,667 | 42,327 |
Loss from discontinued operations (see Note 8) | 0 | 0 | (23,797) | 0 |
Net income | $ 17,570 | $ 20,660 | $ 7,870 | $ 42,327 |
Income from continuing operations - basic and diluted (in usd per share) | $ 3.43 | $ 4.04 | $ 6.19 | $ 8.28 |
Loss from discontinuing operations (see Note 8) - basic and diluted (in usd per share) | 0 | 0 | (4.65) | 0 |
Net income per common share - basic and diluted (in usd per share) | $ 3.43 | $ 4.04 | $ 1.54 | $ 8.28 |
Weighted average shares outstanding - basic and diluted | 5,116,657 | 5,115,320 | 5,116,321 | 5,115,012 |
Dividends per common share (in usd per share) | $ 4.5 | $ 4.25 | $ 9 | $ 8.5 |
Consolidated Statements of Inc5
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Fees to Vornado | $ 1,109 | $ 1,091 | $ 2,275 | $ 2,219 |
Management fees to Vornado | $ 595 | $ 595 | $ 1,190 | $ 1,190 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 17,570 | $ 20,660 | $ 7,870 | $ 42,327 |
Other comprehensive loss: | ||||
Change in fair value of marketable securities (see Note 7) | 0 | (3,394) | 0 | (6,841) |
Change in fair value of interest rate cap | (52) | (112) | (4) | (56) |
Comprehensive income | $ 17,518 | $ 17,154 | $ 7,866 | $ 35,430 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance, Value at Dec. 31, 2016 | $ 352,845 | $ 5,173 | $ 31,189 | $ 308,995 | $ 7,862 | $ (374) |
Beginning Balance, Shares at Dec. 31, 2016 | 5,173,000 | |||||
Net income | 42,327 | 42,327 | ||||
Dividends paid | (43,474) | (43,474) | ||||
Change in fair value of marketable securities | (6,841) | (6,841) | ||||
Change in fair value of interest rate cap | (56) | (56) | ||||
Deferred stock unit grants | 394 | 394 | ||||
Other | 0 | (6) | 6 | |||
Ending Balance, Value at Jun. 30, 2017 | 345,195 | $ 5,173 | 31,577 | 307,848 | 965 | (368) |
Ending Balance, Shares at Jun. 30, 2017 | 5,173,000 | |||||
Beginning Balance, Value at Dec. 31, 2017 | $ 343,955 | $ 5,173 | 31,577 | 302,543 | 5,030 | (368) |
Beginning Balance, Shares at Dec. 31, 2017 | 5,173,450 | 5,173,000 | ||||
Net income | $ 7,870 | 7,870 | ||||
Dividends paid | (46,044) | (46,044) | ||||
Cumulative effect of change in accounting principle (see Note 3) | 0 | 5,156 | (5,156) | |||
Change in fair value of marketable securities | 0 | |||||
Change in fair value of interest rate cap | (4) | (4) | ||||
Deferred stock unit grants | 394 | 394 | ||||
Ending Balance, Value at Jun. 30, 2018 | $ 306,171 | $ 5,173 | $ 31,971 | $ 269,525 | $ (130) | $ (368) |
Ending Balance, Shares at Jun. 30, 2018 | 5,173,450 | 5,173,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 7,870 | $ 42,327 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization, including amortization of debt issuance costs | 19,740 | 17,334 |
Straight-lining of rental income | 2,038 | 2,149 |
Stock-based compensation | 394 | 394 |
Change in fair value of marketable securities (see Note 7) | 4,737 | 0 |
Changes in operating assets and liabilities: | ||
Tenant and other receivables, net | (329) | 280 |
Other assets | (8,785) | (26,191) |
Amounts due to Vornado | (2,064) | (319) |
Accounts payable and accrued expenses | (382) | (155) |
Other liabilities | 10,246 | (14) |
Net cash provided by operating activities | 33,465 | 35,805 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Construction in progress and real estate additions | (1,789) | (2,205) |
Principal repayment proceeds from Rego Park II loan participation | 1,519 | 0 |
Net cash used in investing activities | (270) | (2,205) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Debt repayments | (158,452) | (301,819) |
Proceeds from borrowing | 78,246 | 500,000 |
Dividends paid | (46,044) | (43,474) |
Debt issuance costs | (141) | (11,962) |
Net cash (used in) provided by financing activities | (126,391) | 142,745 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (93,196) | 176,345 |
Cash and cash equivalents and restricted cash at beginning of period | 393,279 | 374,678 |
Cash and cash equivalents and restricted cash at end of period | 300,083 | 551,023 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | ||
Cash and cash equivalents at beginning of period | 307,536 | 288,926 |
Restricted cash at beginning of period | 85,743 | 85,752 |
Cash and cash equivalents and restricted cash at beginning of period | 393,279 | 374,678 |
Cash and cash equivalents at end of period | 293,840 | 466,456 |
Restricted cash at end of period | 6,243 | 84,567 |
Cash and cash equivalents and restricted cash at end of period | 300,083 | 551,023 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash payments for interest | 17,782 | 11,758 |
NON-CASH TRANSACTIONS | ||
Liability for real estate additions, including $29 and $27 for development fees due to Vornado in 2018 and 2017, respectively | 209 | 115 |
Write-off of fully amortized and/or depreciated assets | $ 13,742 | $ 4,265 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Liability for real estate additions due to Vornado | $ 209 | $ 115 |
Development fees | Vornado | ||
Liability for real estate additions due to Vornado | $ 29 | $ 27 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2018 | |
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. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are unaudited and include the accounts of Alexander’s and its consolidated subsidiaries. All intercompany amounts have been eliminated. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (the “SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the operating results for the full year. We operate in one reportable segment. |
Recently Issued Accounting Lite
Recently Issued Accounting Literature | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Literature | 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 (see Note 4). We adopted this standard effective January 1, 2018 using the modified retrospective approach, which allows us to apply the new standard to all existing contracts not yet completed as of the effective date and record a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The adoption of this standard did not 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 update effective January 1, 2018 using the modified retrospective approach. While the adoption of this update 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.” 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 (loss) income.” For the three months ended June 30, 2018 we recorded an increase in the fair value of our marketable securities of $433,000 , resulting from The Macerich Company’s (“Macerich”) closing share price of $56.83 as of June 30, 2018, compared to $56.02 as of March 31, 2018. For the six months ended June 30, 2018 we recorded a decrease in the fair value of our marketable securities of $4,737,000 , resulting from Macerich’s closing share price of $56.83 as of June 30, 2018, compared to $65.68 as of December 31, 2017. ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 3. Recently Issued Accounting Literature - continued In February 2016, the FASB issued an update (“ASU 2016-02”) establishing ASC Topic 842, Leases , as amended by subsequent ASUs on the topic, 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 and will elect to use the practical expedients provided by this standard. 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. We adopted this update effective January 1, 2018 using the modified retrospective approach to all contracts not yet completed. The adoption of this update did not have a material 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. The update ASU 2017-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018, with early adoption permitted. We elected to early adopt ASU 2017-12 effective January 1, 2018 using the modified retrospective approach. The adoption of this update did not have a material impact on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Our revenues consist of property rentals and expense reimbursements. We have the following revenue sources and revenue recognition policies: • Base Rent is 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 rent abatements. 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 is 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). • Parking Revenue arising from the rental of parking spaces at our properties. This income is recognized as the services are provided. • Operating Expense Reimbursements is revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of our properties. Revenue is recognized in the same period as the related expenses are incurred. • Tenant Services is revenue arising from sub-metered electric, elevator and other services provided to tenants at their request. This revenue is recognized as the services are transferred. Parking revenue and tenant services income represent revenue recognized from contracts with customers and are recognized in accordance with ASC 606. Base rent, percentage rent and operating expense reimbursements are recognized in accordance with ASC Topic 840, Leases. The following is a summary of revenue sources for the three and six months ended June 30, 2018 and 2017. Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2018 2017 2018 2017 Base rent $ 37,210 $ 36,751 $ 73,910 $ 73,413 Percentage rent — (34 ) 234 163 Parking revenue 1,408 1,547 2,715 2,961 Property rentals 38,618 38,264 76,859 76,537 Operating expense reimbursements 18,696 17,830 37,376 35,850 Tenant services 939 1,096 1,898 2,032 Expense reimbursements 19,635 18,926 39,274 37,882 Total revenues $ 58,253 $ 57,190 $ 116,133 $ 114,419 |
Rego Park II Loan Participation
Rego Park II Loan Participation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [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 paid $200,000,000 to participate in the loan and are entitled to interest of LIBOR plus 1.60% ( 3.69% as of June 30, 2018 ). The investment is presented as “Rego Park II loan participation” on our consolidated balance sheets as of June 30, 2018 and December 31, 2017, and interest earned is recognized as “interest and other income, net” in our consolidated statements of income for the three and six months ended June 30, 2018. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Vornado As of June 30, 2018 , 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. 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) $315,000 , 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 731 Lexington Avenue property and (ii) security services at our Rego Park I and Rego Park II properties and The Alexander apartment tower. The following is a summary of fees to Vornado under the various agreements discussed above. Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2018 2017 2018 2017 Company management fees $ 700 $ 700 $ 1,400 $ 1,400 Development fees 2 4 9 32 Leasing fees — 4 — 15 Property management, cleaning, engineering and security fees 939 953 1,965 1,941 $ 1,641 $ 1,661 $ 3,374 $ 3,388 As of June 30, 2018 , the amounts due to Vornado were $29,000 for development fees and $405,000 for management, property management, cleaning, engineering and security fees. 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. ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 6. Related Party Transactions - continued Toys “R” Us, Inc. (“Toys”) Our affiliate, Vornado, owns 32.5% of Toys. Joseph Macnow, Vornado’s Executive Vice President and Chief Financial Officer and Wendy A. Silverstein, a member of our Board of Directors, represent Vornado as members of Toys’ Board of Directors. In connection with the Toys Chapter 11 bankruptcy, its 47,000 square foot lease at our Rego Park II shopping center ( $2,600,000 of annual revenue) was rejected effective June 30, 2018 and possession of the space was returned to us. Consequently, we accelerated depreciation and amortization of the remaining balances of $588,000 of tenant improvements and $215,000 of deferred leasing costs during the three months ended June 30, 2018. We also wrote off the Toys receivable arising from the straight-lining of rent of $500,000 during the six months ended June 30, 2018. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities As of June 30, 2018 and December 31, 2017, we owned 535,265 common shares of Macerich (NYSE: MAC). These shares have an economic cost of $56.05 per share, or $30,000,000 in the aggregate. As of June 30, 2018 and December 31, 2017, the fair value of these shares was $30,419,000 and $35,156,000 , respectively, based on Macerich’s closing share price of $56.83 per share and $65.68 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 change in fair value of these securities were included in “other comprehensive loss.” Effective January 1, 2018, changes in the fair value of these securities are recognized in current period earnings in accordance with ASC 825. For the three months ended June 30, 2018 we recorded an increase in the fair value of our marketable securities of $433,000 , resulting from Macerich’s closing share price of $56.83 as of June 30, 2018, compared to $56.02 as of March 31, 2018. For the six months ended June 30, 2018 we recorded a decrease in the fair value of our marketable securities of $4,737,000 , resulting from Macerich’s closing share price of $56.83 as of June 30, 2018, compared to $65.68 as of December 31, 2017. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In 2012, we sold the Kings Plaza Regional Shopping Center (“Kings Plaza”) and paid real property transfer taxes to New York City in connection with the sale. In 2015, the New York City Department of Finance (“NYC DOF”) issued a Notice of Determination to us assessing an additional New York City real property transfer tax amount, including interest, which we are contesting. In 2014, in a case with similar facts, the NYC DOF issued a Notice of Determination to a Vornado joint venture assessing an additional New York City real property transfer tax amount, including interest. In January 2017, a New York City administrative law judge made a determination upholding the Vornado joint venture’s position that such additional real property transfer taxes were not due. On February 16, 2018, the New York City Tax Appeals Tribunal (the “Tribunal”) overturned the January 2017 determination. The Vornado joint venture is appealing the Tribunal’s decision to the Appellate Division of the Supreme Court of the State of New York. Based on the precedent of the Tribunal’s decision, we accrued an expense for the potential additional real property transfer taxes of $23,797,000 ( $15,874,000 of real property transfer tax and $7,923,000 of interest) during the three months ended March 31, 2018. On April 5, 2018, we paid this amount in order to stop the interest from accruing. Our case is on hold pending the outcome of the Vornado joint venture’s appeal. As the results related to Kings Plaza were previously classified as discontinued operations, we have classified the expense as “loss from discontinued operations” on our consolidated statement of income for the six months ended June 30, 2018 in accordance with the provisions of ASC Topic 360, Property, Plant and Equipment . |
Significant Tenant
Significant Tenant | 6 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Significant Tenant | Significant Tenant Bloomberg L.P. (“Bloomberg”) accounted for revenue of $52,672,000 and $52,187,000 for the six months ended June 30, 2018 and 2017, respectively, representing approximately 45% and 46% of our total revenues in each period, 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. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
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 Topic 718, Compensation – Stock Compensation . 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. In May 2018, we granted each of the members of our Board of Directors 195 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 June 30, 2018, there were 10,057 DSUs outstanding and 495,730 shares were available for future grant under the Plan. |
Mortgages Payable
Mortgages Payable | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Mortgages Payable | Mortgages Payable The following is a summary of our outstanding mortgages payable as of June 30, 2018 and December 31, 2017. We may refinance our maturing debt as it comes due or choose to repay it. Balance at (Amounts in thousands) Maturity (1) Interest Rate at June 30, 2018 June 30, 2018 December 31, 2017 First mortgages secured by: Paramus Oct. 2018 2.90% $ 68,000 $ 68,000 Rego Park II shopping center (2) Nov. 2018 3.94% 254,234 256,194 731 Lexington Avenue, retail space (3) Aug. 2022 3.41% 350,000 350,000 731 Lexington Avenue, office space (4) Jun. 2024 2.97% 500,000 500,000 Rego Park I shopping center (100% cash collateralized) (5) — — — 78,246 Total 1,172,234 1,252,440 Deferred debt issuance costs, net of accumulated amortization of $8,915 and $6,315, respectively (9,602 ) (12,218 ) $ 1,162,632 $ 1,240,222 (1) Represents the extended maturity where we have the unilateral right to extend. (2) Interest at LIBOR plus 1.85% . See Note 5 for details of our Rego Park II loan participation. (3) Interest at LIBOR plus 1.40% . (4) Interest at LIBOR plus 0.90% . (5) Refinanced on May 11, 2018 and repaid on June 6, 2018. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) 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 June 30, 2018 and December 31, 2017, consist of marketable securities and an interest rate cap, which are presented in the table below based on their level in the fair value hierarchy. There were no financial liabilities measured at fair value as of June 30, 2018 and December 31, 2017. As of June 30, 2018 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 30,419 $ 30,419 $ — $ — Interest rate cap (included in other assets) 2 — 2 — Total assets $ 30,421 $ 30,419 $ 2 $ — As of December 31, 2017 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 35,156 $ 35,156 $ — $ — Interest rate cap (included in other assets) 6 — 6 — Total assets $ 35,162 $ 35,156 $ 6 $ — 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 amounts and fair value of these financial instruments as of June 30, 2018 and December 31, 2017. As of June 30, 2018 As of December 31, 2017 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash equivalents $ 259,774 $ 259,774 $ 273,914 $ 273,914 Rego Park II loan participation 197,018 197,000 198,537 198,000 $ 456,792 $ 456,774 $ 472,451 $ 471,914 Liabilities: Mortgages payable (excluding deferred debt issuance costs, net) $ 1,172,234 $ 1,162,000 $ 1,252,440 $ 1,239,000 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
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 $306,000 deductible and 18% of the balance of a covered loss, and the Federal government is responsible for the remaining 82% 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. If lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance our properties. 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 -year lease term. 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 . On April 4, 2017, Sears closed its 195,000 square foot store at our Rego Park I property. Annual revenue is approximately $10,400,000 , 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 $3,271,000 of receivables arising from the straight-lining of rent and $343,000 of unamortized deferred leasing costs on our consolidated balance sheet related to the Sears lease as of June 30, 2018 which we will continue to assess for recoverability. ALEXANDER’S, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 13. Commitments and Contingencies - continued Letters of Credit Approximately $1,040,000 of standby letters of credit were issued and outstanding as of June 30, 2018 . Other 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. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted income per share. Basic income per share is determined using the weighted average shares of common stock outstanding during the period. Diluted income per share is determined using the weighted average shares of common stock 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 three and six months ended June 30, 2018 and 2017. Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands, except share and per share amounts) 2018 2017 2018 2017 Income from continuing operations $ 17,570 $ 20,660 $ 31,667 $ 42,327 Loss from discontinued operations (see Note 8) — — (23,797 ) — Net income $ 17,570 $ 20,660 $ 7,870 $ 42,327 Weighted average shares outstanding – basic and diluted 5,116,657 5,115,320 5,116,321 5,115,012 Income from continuing operations $ 3.43 $ 4.04 $ 6.19 $ 8.28 Loss from discontinued operations (see Note 8) — — (4.65 ) — Net income per common share – basic and diluted $ 3.43 $ 4.04 $ 1.54 $ 8.28 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements are unaudited and include the accounts of Alexander’s and its consolidated subsidiaries. All intercompany amounts have been eliminated. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (the “SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the operating results for the full year. We operate in one reportable segment. |
Fair value of financial instruments | 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 update effective January 1, 2018 using the modified retrospective approach. While the adoption of this update 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.” |
Leases | In February 2016, the FASB issued an update (“ASU 2016-02”) establishing ASC Topic 842, Leases , as amended by subsequent ASUs on the topic, 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 and will elect to use the practical expedients provided by this standard. |
Recently Issued Accounting Literature | 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. We adopted this update effective January 1, 2018 using the modified retrospective approach to all contracts not yet completed. The adoption of this update did not have a material impact on our consolidated financial statements. |
Hedging Activities | 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. The update ASU 2017-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018, with early adoption permitted. We elected to early adopt ASU 2017-12 effective January 1, 2018 using the modified retrospective approach. The adoption of this update did not have a material impact on our consolidated financial statements. |
Marketable Securities | 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 change in fair value of these securities were included in “other comprehensive loss.” Effective January 1, 2018, changes in the fair value of these securities are recognized in current period earnings in accordance with ASC 825. |
Fair Value Measurement | ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) 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. |
Revenue recognition | 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 (see Note 4). We adopted this standard effective January 1, 2018 using the modified retrospective approach, which allows us to apply the new standard to all existing contracts not yet completed as of the effective date and record a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The adoption of this standard did not have a material impact on our consolidated financial statements. Our revenues consist of property rentals and expense reimbursements. We have the following revenue sources and revenue recognition policies: • Base Rent is 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 rent abatements. 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 is 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). • Parking Revenue arising from the rental of parking spaces at our properties. This income is recognized as the services are provided. • Operating Expense Reimbursements is revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of our properties. Revenue is recognized in the same period as the related expenses are incurred. • Tenant Services is revenue arising from sub-metered electric, elevator and other services provided to tenants at their request. This revenue is recognized as the services are transferred. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following is a summary of revenue sources for the three and six months ended June 30, 2018 and 2017. Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2018 2017 2018 2017 Base rent $ 37,210 $ 36,751 $ 73,910 $ 73,413 Percentage rent — (34 ) 234 163 Parking revenue 1,408 1,547 2,715 2,961 Property rentals 38,618 38,264 76,859 76,537 Operating expense reimbursements 18,696 17,830 37,376 35,850 Tenant services 939 1,096 1,898 2,032 Expense reimbursements 19,635 18,926 39,274 37,882 Total revenues $ 58,253 $ 57,190 $ 116,133 $ 114,419 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Fees to Vornado | The following is a summary of fees to Vornado under the various agreements discussed above. Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2018 2017 2018 2017 Company management fees $ 700 $ 700 $ 1,400 $ 1,400 Development fees 2 4 9 32 Leasing fees — 4 — 15 Property management, cleaning, engineering and security fees 939 953 1,965 1,941 $ 1,641 $ 1,661 $ 3,374 $ 3,388 |
Mortgages Payable (Tables)
Mortgages Payable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Mortgages Payable | The following is a summary of our outstanding mortgages payable as of June 30, 2018 and December 31, 2017. We may refinance our maturing debt as it comes due or choose to repay it. Balance at (Amounts in thousands) Maturity (1) Interest Rate at June 30, 2018 June 30, 2018 December 31, 2017 First mortgages secured by: Paramus Oct. 2018 2.90% $ 68,000 $ 68,000 Rego Park II shopping center (2) Nov. 2018 3.94% 254,234 256,194 731 Lexington Avenue, retail space (3) Aug. 2022 3.41% 350,000 350,000 731 Lexington Avenue, office space (4) Jun. 2024 2.97% 500,000 500,000 Rego Park I shopping center (100% cash collateralized) (5) — — — 78,246 Total 1,172,234 1,252,440 Deferred debt issuance costs, net of accumulated amortization of $8,915 and $6,315, respectively (9,602 ) (12,218 ) $ 1,162,632 $ 1,240,222 (1) Represents the extended maturity where we have the unilateral right to extend. (2) Interest at LIBOR plus 1.85% . See Note 5 for details of our Rego Park II loan participation. (3) Interest at LIBOR plus 1.40% . (4) Interest at LIBOR plus 0.90% . (5) Refinanced on May 11, 2018 and repaid on June 6, 2018. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value | As of June 30, 2018 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 30,419 $ 30,419 $ — $ — Interest rate cap (included in other assets) 2 — 2 — Total assets $ 30,421 $ 30,419 $ 2 $ — As of December 31, 2017 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities $ 35,156 $ 35,156 $ — $ — Interest rate cap (included in other assets) 6 — 6 — Total assets $ 35,162 $ 35,156 $ 6 $ — |
Financial Assets and Liabilities Not Measured at Fair Value | The table below summarizes the carrying amounts and fair value of these financial instruments as of June 30, 2018 and December 31, 2017. As of June 30, 2018 As of December 31, 2017 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash equivalents $ 259,774 $ 259,774 $ 273,914 $ 273,914 Rego Park II loan participation 197,018 197,000 198,537 198,000 $ 456,792 $ 456,774 $ 472,451 $ 471,914 Liabilities: Mortgages payable (excluding deferred debt issuance costs, net) $ 1,172,234 $ 1,162,000 $ 1,252,440 $ 1,239,000 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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. Basic income per share is determined using the weighted average shares of common stock outstanding during the period. Diluted income per share is determined using the weighted average shares of common stock 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 three and six months ended June 30, 2018 and 2017. Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands, except share and per share amounts) 2018 2017 2018 2017 Income from continuing operations $ 17,570 $ 20,660 $ 31,667 $ 42,327 Loss from discontinued operations (see Note 8) — — (23,797 ) — Net income $ 17,570 $ 20,660 $ 7,870 $ 42,327 Weighted average shares outstanding – basic and diluted 5,116,657 5,115,320 5,116,321 5,115,012 Income from continuing operations $ 3.43 $ 4.04 $ 6.19 $ 8.28 Loss from discontinued operations (see Note 8) — — (4.65 ) — Net income per common share – basic and diluted $ 3.43 $ 4.04 $ 1.54 $ 8.28 |
Organization - Additional Infor
Organization - Additional Information (Detail) | Jun. 30, 2018property |
Operating Property | |
Real Estate Properties [Line Items] | |
Number of properties in greater New York City metropolitan area | 7 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Recently Issued Accounting Li32
Recently Issued Accounting Literature - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | $ 269,525 | $ 269,525 | $ 302,543 | ||||
Change in fair value of marketable securities (see Note 7) | $ 433 | $ 0 | (4,737) | $ 0 | |||
Accounting Standards Update 2016-01 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | $ 5,156 | ||||||
Macerich Interest | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Change in fair value of marketable securities (see Note 7) | $ (4,737) | ||||||
Closing share price | $ 56.83 | $ 56.83 | $ 56.02 | $ 65.68 | |||
Macerich Interest | Accounting Standards Update 2016-01 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Change in fair value of marketable securities (see Note 7) | $ 433 | $ (4,737) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Property rentals | $ 38,618 | $ 38,264 | $ 76,859 | $ 76,537 |
Expense reimbursements | 19,635 | 18,926 | 39,274 | 37,882 |
Total revenues | 58,253 | 57,190 | 116,133 | 114,419 |
Base rent | ||||
Disaggregation of Revenue [Line Items] | ||||
Property rentals | 37,210 | 36,751 | 73,910 | 73,413 |
Percentage rent | ||||
Disaggregation of Revenue [Line Items] | ||||
Property rentals | 0 | (34) | 234 | 163 |
Parking revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Property rentals | 1,408 | 1,547 | 2,715 | 2,961 |
Operating expense reimbursements | ||||
Disaggregation of Revenue [Line Items] | ||||
Expense reimbursements | 18,696 | 17,830 | 37,376 | 35,850 |
Tenant services | ||||
Disaggregation of Revenue [Line Items] | ||||
Expense reimbursements | $ 939 | $ 1,096 | $ 1,898 | $ 2,032 |
Rego Park II Loan Participati34
Rego Park II Loan Participation - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 28, 2017 | Jun. 30, 2017 | Jun. 30, 2018 |
Investment In Loan Participation [Line Items] | |||
Rego Park II loan participation payment | $ 0 | ||
Participation Agreement | Rego Park II | |||
Investment In Loan Participation [Line Items] | |||
Loan maturity date | Nov. 30, 2018 | ||
Rego Park II loan participation payment | $ 200,000 | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||
Interest rate (in percentage) | 3.69% | ||
Participation Agreement | Rego Park II | LIBOR | |||
Investment In Loan Participation [Line Items] | |||
Basis spread over LIBOR | 1.60% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) ft² in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)ft² | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)ft²$ / ft² | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |||||
Receivable arising from the straight-lining of rents | $ 172,675,000 | $ 172,675,000 | $ 174,713,000 | ||
Change in fair value of marketable securities (see Note 7) | 433,000 | $ 0 | (4,737,000) | $ 0 | |
Toys R Us | |||||
Related Party Transaction [Line Items] | |||||
Receivable arising from the straight-lining of rents | $ 500,000 | $ 500,000 | |||
Rego Park II | Retail Space | Toys R Us | |||||
Related Party Transaction [Line Items] | |||||
Area of property | ft² | 47 | 47 | |||
Annual revenue from leased property | $ 2,600,000 | ||||
Vornado | |||||
Related Party Transaction [Line Items] | |||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 32.40% | 32.40% | |||
Management fee agreement value | $ 2,800,000 | ||||
Vornado | Toys R Us | |||||
Related Party Transaction [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 32.50% | 32.50% | |||
Vornado | Property management, cleaning, engineering and security fees | Rego Park II | Retail Space | |||||
Related Party Transaction [Line Items] | |||||
Property management fee agreement percentage of income | 2.00% | ||||
Vornado | Property management, cleaning, engineering and security fees | 731 Lexington Avenue | Office and Retail Space | |||||
Related Party Transaction [Line Items] | |||||
Property management fee agreement price per square foot | $ / ft² | 0.50 | ||||
Vornado | Property management, cleaning, engineering and security fees | 731 Lexington Avenue | Common Area | |||||
Related Party Transaction [Line Items] | |||||
Property management fee agreement value | $ 315,000 | ||||
Property management fee escalation percentage per annum | 3.00% | ||||
Vornado | Development fees | |||||
Related Party Transaction [Line Items] | |||||
Development fee as percentage of development costs | 6.00% | ||||
Amount Due to / (Fees paid to) related party | $ 29,000 | $ 29,000 | 21,000 | ||
Vornado | Leasing fees | |||||
Related Party Transaction [Line Items] | |||||
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% | ||||
Amount Due to / (Fees paid to) related party | 1,811,000 | ||||
Vornado | Management, Property Management, Cleaning, Engineering and Security Fees | |||||
Related Party Transaction [Line Items] | |||||
Amount Due to / (Fees paid to) related party | 405,000 | $ 405,000 | $ 658,000 | ||
Tenant Improvements | Toys R Us | |||||
Related Party Transaction [Line Items] | |||||
Depreciation and amortization | 588,000 | ||||
Deferred Leasing Costs | Toys R Us | |||||
Related Party Transaction [Line Items] | |||||
Depreciation and amortization | $ 215,000 |
Related Party Transactions - Su
Related Party Transactions - Summary of Fees to Vornado (Detail) - Vornado - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
Fees to related party | $ 1,641 | $ 1,661 | $ 3,374 | $ 3,388 |
Company management fees | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | 700 | 700 | 1,400 | 1,400 |
Development fees | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | 2 | 4 | 9 | 32 |
Leasing fees | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | 0 | 4 | 0 | 15 |
Property management, cleaning, engineering and security fees | ||||
Related Party Transaction [Line Items] | ||||
Fees to related party | $ 939 | $ 953 | $ 1,965 | $ 1,941 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
Investment Holdings [Line Items] | ||||||
Change in fair value of marketable securities (see Note 7) | $ 433 | $ 0 | $ (4,737) | $ 0 | ||
Macerich Interest | ||||||
Investment Holdings [Line Items] | ||||||
Macerich common shares | 535,265 | 535,265 | 535,265 | |||
Economic basis per share | $ 56.05 | $ 56.05 | ||||
Economic cost | $ 30,000 | $ 30,000 | ||||
Fair value | $ 30,419 | $ 30,419 | $ 35,156 | |||
Closing share price | $ 56.83 | $ 56.83 | $ 56.02 | $ 65.68 | ||
Change in fair value of marketable securities (see Note 7) | $ (4,737) |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | |
Total real property transfer tax | $ 23,797 |
Additional real property transfer tax expense | 15,874 |
Real property transfer tax interest | $ 7,923 |
Significant Tenant - Additional
Significant Tenant - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Real Estate Properties [Line Items] | ||||
Real estate revenue, net | $ 58,253,000 | $ 57,190,000 | $ 116,133,000 | $ 114,419,000 |
Customer Concentration Risk | Sales Revenue Services Net | ||||
Real Estate Properties [Line Items] | ||||
Percentage of minimum revenue threshold contributed by one tenant | 10.00% | |||
Bloomberg | Customer Concentration Risk | Sales Revenue Services Net | ||||
Real Estate Properties [Line Items] | ||||
Real estate revenue, net | $ 52,672,000 | $ 52,187,000 | ||
Percentage rent contributed by tenant | 45.00% | 46.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | |
May 31, 2018 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation arrangement By share based payment award equity instruments other than options outstanding number | 10,057 | |
Shares available for future grant under the plan | 495,730 | |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation arrangement by share based payment award non option equity instruments granted per director | 195 | |
Share based compensation arrangement by share based payment award non option equity instruments grant date fair value per grant | $ 56,250 | |
Share based compensation arrangement By share based payment award non option equity instruments grant date fair value total | $ 394,000 |
Mortgages Payable - Additional
Mortgages Payable - Additional Information (Detail) - Mortgages | 6 Months Ended |
Jun. 30, 2018 | |
Rego Park II | Retail Site | |
Mortgage Loans on Real Estate [Line Items] | |
Debt Instrument, Description of Variable Rate Basis | LIBOR |
Rego Park II | Retail Site | LIBOR | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread over LIBOR | 1.85% |
731 Lexington Avenue | Retail Site | |
Mortgage Loans on Real Estate [Line Items] | |
Debt Instrument, Description of Variable Rate Basis | LIBOR |
731 Lexington Avenue | Retail Site | LIBOR | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread over LIBOR | 1.40% |
731 Lexington Avenue | Office Space | |
Mortgage Loans on Real Estate [Line Items] | |
Debt Instrument, Description of Variable Rate Basis | LIBOR |
731 Lexington Avenue | Office Space | LIBOR | |
Mortgage Loans on Real Estate [Line Items] | |
Basis spread over LIBOR | 0.90% |
Mortgages Payable - Summary of
Mortgages Payable - Summary of Outstanding Mortgages Payable (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Mortgage Loans on Real Estate [Line Items] | ||
Notes payable | $ 1,162,632 | $ 1,240,222 |
Mortgages | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage payable gross | 1,172,234 | 1,252,440 |
Deferred debt issuance costs, net of accumulated amortization of $8,915 and $6,315, respectively | (9,602) | (12,218) |
Notes payable | $ 1,162,632 | 1,240,222 |
Mortgages | Paramus | ||
Mortgage Loans on Real Estate [Line Items] | ||
Maturity date | Oct. 5, 2018 | |
Interest rate (in percentage) | 2.90% | |
Mortgage payable gross | $ 68,000 | 68,000 |
Mortgages | Rego Park II | Retail Space | ||
Mortgage Loans on Real Estate [Line Items] | ||
Maturity date | Nov. 30, 2018 | |
Interest rate (in percentage) | 3.94% | |
Mortgage payable gross | $ 254,234 | 256,194 |
Mortgages | 731 Lexington Avenue | Retail Space | ||
Mortgage Loans on Real Estate [Line Items] | ||
Maturity date | Aug. 1, 2022 | |
Interest rate (in percentage) | 3.41% | |
Mortgage payable gross | $ 350,000 | 350,000 |
Mortgages | 731 Lexington Avenue | Office Space | ||
Mortgage Loans on Real Estate [Line Items] | ||
Maturity date | Jun. 1, 2024 | |
Interest rate (in percentage) | 2.97% | |
Mortgage payable gross | $ 500,000 | 500,000 |
Mortgages | Rego Park I | Retail Space | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest rate (in percentage) | 0.00% | |
Mortgage payable gross | $ 0 | $ 78,246 |
Mortgages Payable - Summary o43
Mortgages Payable - Summary of Outstanding Mortgages Payable Narrative (Detail) - Mortgages - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Mortgage Loans on Real Estate [Line Items] | ||
Deferred debt issuance costs, accumulated amortization | $ 8,915 | $ 6,315 |
Paramus | ||
Mortgage Loans on Real Estate [Line Items] | ||
Maturity date | Oct. 5, 2018 | |
Retail Space | Rego Park I | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of cash mortgage collateralized | 100.00% | |
Refinance date | May 11, 2018 | |
Repayment date | Jun. 6, 2018 | |
Retail Space | Rego Park II | ||
Mortgage Loans on Real Estate [Line Items] | ||
Maturity date | Nov. 30, 2018 | |
Retail Space | 731 Lexington Avenue | ||
Mortgage Loans on Real Estate [Line Items] | ||
Maturity date | Aug. 1, 2022 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value (Detail) - Recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 30,421 | $ 35,162 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 30,419 | 35,156 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2 | 6 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 30,419 | 35,156 |
Marketable securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 30,419 | 35,156 |
Marketable securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Marketable securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Interest rate cap (included in other assets) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2 | 6 |
Interest rate cap (included in other assets) | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Interest rate cap (included in other assets) | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2 | 6 |
Interest rate cap (included in other assets) | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 0 | $ 0 |
Fair Value Measurements - Fin45
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Carrying Amount | ||
Assets: | ||
Cash equivalents | $ 259,774 | $ 273,914 |
Rego Park II loan participation | 197,018 | 198,537 |
Assets | 456,792 | 472,451 |
Liabilities: | ||
Mortgages payable (excluding deferred debt issuance costs, net) | 1,172,234 | 1,252,440 |
Fair Value | ||
Assets: | ||
Assets | 456,774 | 471,914 |
Fair Value | Level 1 | ||
Assets: | ||
Cash equivalents | 259,774 | 273,914 |
Fair Value | Level 2 | ||
Assets: | ||
Rego Park II loan participation | 197,000 | 198,000 |
Liabilities: | ||
Mortgages payable (excluding deferred debt issuance costs, net) | $ 1,162,000 | $ 1,239,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2016USD ($) | Feb. 28, 2014fire | Jun. 30, 2018USD ($)ft² | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)ft² | Jun. 30, 2017USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2001a | |
Loss Contingencies [Line Items] | |||||||||
Insurance maximum coverage per occurrence | $ 300,000,000 | ||||||||
Insurance maximum coverage per property | 300,000,000 | ||||||||
Mortgages payable, net of deferred debt issuance costs | $ 1,162,632,000 | 1,162,632,000 | $ 1,240,222,000 | ||||||
Annual property rental | 38,618,000 | $ 38,264,000 | 76,859,000 | $ 76,537,000 | |||||
Deferred leasing cost, net | 43,234,000 | 43,234,000 | $ 45,790,000 | ||||||
Standby letters of credit, outstanding | $ 1,040,000 | $ 1,040,000 | |||||||
Rego Park I | Sears | |||||||||
Loss Contingencies [Line Items] | |||||||||
Lease expiration date | 2021-03 | ||||||||
Number of fires | fire | 2 | ||||||||
Area of property | ft² | 195,000 | 195,000 | |||||||
Annual property rental | $ 10,400,000 | ||||||||
Straight line rent receivable | $ 3,271,000 | ||||||||
Deferred leasing cost, net | $ 343,000 | 343,000 | |||||||
Rego Park I | Sears | Minimum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, damages sought, value | $ 4,000,000 | ||||||||
Paramus | IKEA | Tenant Occupant | |||||||||
Loss Contingencies [Line Items] | |||||||||
Area of land | a | 30.3 | ||||||||
Fixed interest rate on the debt | 2.90% | 2.90% | |||||||
Triple-net rent, annual amount | $ 700,000 | ||||||||
Mortgages payable, net of deferred debt issuance costs | $ 68,000,000 | $ 68,000,000 | |||||||
Debt instrument maturity date | Oct. 5, 2018 | ||||||||
All Risk Property and Rental Value | |||||||||
Loss Contingencies [Line Items] | |||||||||
Insurance maximum coverage per occurrence | $ 1,700,000,000 | ||||||||
Terrorism Coverage Including NBCR | |||||||||
Loss Contingencies [Line Items] | |||||||||
Insurance maximum coverage per occurrence | 1,700,000,000 | ||||||||
Insurance maximum coverage in aggregate | $ 1,700,000,000 | ||||||||
NBCR | |||||||||
Loss Contingencies [Line Items] | |||||||||
Insurance coverage end date | Dec. 1, 2020 | ||||||||
Self insured responsibility | 18.00% | 18.00% | |||||||
Federal government responsibility | 82.00% | 82.00% | |||||||
NBCR | FNSIC | |||||||||
Loss Contingencies [Line Items] | |||||||||
Insurance deductible | $ 306,000 | ||||||||
Forecast | Paramus | IKEA | Tenant Occupant | |||||||||
Loss Contingencies [Line Items] | |||||||||
Lease purchase option amount | $ 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 | ||||||||
Purchase option exercised, gain on sale of land | $ 60,000,000 | ||||||||
Lease term range as Lessor | 20 years | ||||||||
Loan amortization period | 20 years | ||||||||
Estimated Future Damages | Rego Park I | Sears | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, damages sought, value | $ 650,000 | ||||||||
Estimated Future Damages | Rego Park I | Sears | Minimum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, damages sought, value | 25,000,000 | ||||||||
Estimated Future Damages | Rego Park I | Sears | Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Reasonably possible losses | $ 650,000 | $ 650,000 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Income from continuing operations | $ 17,570 | $ 20,660 | $ 31,667 | $ 42,327 |
Loss from discontinued operations (see Note 8) | 0 | 0 | (23,797) | 0 |
Net income | $ 17,570 | $ 20,660 | $ 7,870 | $ 42,327 |
Weighted average shares outstanding - basic and diluted | 5,116,657 | 5,115,320 | 5,116,321 | 5,115,012 |
Income from continuing operations - basic and diluted (in usd per share) | $ 3.43 | $ 4.04 | $ 6.19 | $ 8.28 |
Loss from discontinuing operations (see Note 8) - basic and diluted (in usd per share) | 0 | 0 | (4.65) | 0 |
Net income per common share - basic and diluted (in usd per share) | $ 3.43 | $ 4.04 | $ 1.54 | $ 8.28 |