Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2019shares | |
Document and Entity Information | |
Entity Registrant Name | Vornado Realty Trust |
Entity Central Index Key | 0000899689 |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 190,761,498 |
Entity Trading Symbol | vno |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Vornado Realty L.P. | |
Document and Entity Information | |
Entity Registrant Name | Vornado Realty L.P. |
Entity Central Index Key | 0001040765 |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 190,761,498 |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Real estate, at cost: | ||
Land | $ 2,608,770 | $ 3,306,280 |
Buildings and improvements | 7,821,301 | 10,110,992 |
Development costs and construction in progress | 1,961,512 | 2,266,491 |
Moynihan Train Hall development expenditures | 550,996 | 445,693 |
Leasehold improvements and equipment | 115,756 | 108,427 |
Total | 13,058,335 | 16,237,883 |
Less accumulated depreciation and amortization | (2,845,120) | (3,180,175) |
Real estate, net | 10,213,215 | 13,057,708 |
Assets held for sale | 3,027,058 | 0 |
Right-of-use assets | 457,662 | 0 |
Cash and cash equivalents | 307,047 | 570,916 |
Restricted cash | 593,759 | 145,989 |
Marketable securities | 39,866 | 152,198 |
Tenant and other receivables, net of allowance for doubtful accounts of $4,154 as of December 31, 2018 | 73,404 | 73,322 |
Investments in partially owned entities | 730,264 | 858,113 |
Real estate fund investments | 322,858 | 318,758 |
220 Central Park South condominium units ready for sale | 229,567 | 99,627 |
Receivable arising from the straight-lining of rents, net of allowance of $1,644 as of December 31, 2018 | 766,634 | 935,131 |
Deferred leasing costs, net of accumulated amortization of $180,953 and $207,529 | 345,241 | 400,313 |
Identified intangible assets, net of accumulated amortization of $97,749 and $172,114 | 34,161 | 136,781 |
Other assets | 497,219 | 431,938 |
Assets | 17,637,955 | 17,180,794 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Mortgages payable, net | 6,519,189 | 8,167,798 |
Senior unsecured notes, net | 845,261 | 844,002 |
Unsecured term loan, net | 745,076 | 744,821 |
Unsecured revolving credit facilities | 530,000 | 80,000 |
Liabilities related to assets held for sale | 1,097,350 | 0 |
Lease liabilities | 484,173 | 0 |
Moynihan Train Hall obligation | 550,996 | 445,693 |
Accounts payable and accrued expenses | 442,496 | 430,976 |
Deferred revenue | 71,328 | 167,730 |
Deferred compensation plan | 101,922 | 96,523 |
Other liabilities | 292,187 | 311,806 |
Total liabilities | 11,679,978 | 11,289,349 |
Commitments and contingencies | ||
Redeemable noncontrolling interests / partnership units | ||
Class A units - 12,789,891 and 12,544,477 units outstanding | 862,550 | 778,134 |
Series D cumulative redeemable preferred units - 141,401 and 177,101 units outstanding | 4,535 | 5,428 |
Total redeemable noncontrolling interests / partnership units | 867,085 | 783,562 |
Shareholders' / Partner's Equity | ||
Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 36,797,580 and 36,798,580 shares | 891,263 | 891,294 |
Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 190,761,498 and 190,535,499 shares | 7,609 | 7,600 |
Additional capital | 7,676,770 | 7,725,857 |
Earnings less than distributions | (4,120,265) | (4,167,184) |
Accumulated other comprehensive (loss) income | (11,385) | 7,664 |
Total Vornado shareholders' equity | 4,443,992 | 4,465,231 |
Noncontrolling interests in consolidated subsidiaries | 646,900 | 642,652 |
Total equity | 5,090,892 | 5,107,883 |
Total liabilities, redeemable noncontrolling interests / partnership units and equity | 17,637,955 | 17,180,794 |
Vornado Realty L.P. | ||
Real estate, at cost: | ||
Land | 2,608,770 | 3,306,280 |
Buildings and improvements | 7,821,301 | 10,110,992 |
Development costs and construction in progress | 1,961,512 | 2,266,491 |
Moynihan Train Hall development expenditures | 550,996 | 445,693 |
Leasehold improvements and equipment | 115,756 | 108,427 |
Total | 13,058,335 | 16,237,883 |
Less accumulated depreciation and amortization | (2,845,120) | (3,180,175) |
Real estate, net | 10,213,215 | 13,057,708 |
Assets held for sale | 3,027,058 | 0 |
Right-of-use assets | 457,662 | 0 |
Cash and cash equivalents | 307,047 | 570,916 |
Restricted cash | 593,759 | 145,989 |
Marketable securities | 39,866 | 152,198 |
Tenant and other receivables, net of allowance for doubtful accounts of $4,154 as of December 31, 2018 | 73,404 | 73,322 |
Investments in partially owned entities | 730,264 | 858,113 |
Real estate fund investments | 322,858 | 318,758 |
220 Central Park South condominium units ready for sale | 229,567 | 99,627 |
Receivable arising from the straight-lining of rents, net of allowance of $1,644 as of December 31, 2018 | 766,634 | 935,131 |
Deferred leasing costs, net of accumulated amortization of $180,953 and $207,529 | 345,241 | 400,313 |
Identified intangible assets, net of accumulated amortization of $97,749 and $172,114 | 34,161 | 136,781 |
Other assets | 497,219 | 431,938 |
Assets | 17,637,955 | 17,180,794 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Mortgages payable, net | 6,519,189 | 8,167,798 |
Senior unsecured notes, net | 845,261 | 844,002 |
Unsecured term loan, net | 745,076 | 744,821 |
Unsecured revolving credit facilities | 530,000 | 80,000 |
Liabilities related to assets held for sale | 1,097,350 | 0 |
Lease liabilities | 484,173 | 0 |
Moynihan Train Hall obligation | 550,996 | 445,693 |
Accounts payable and accrued expenses | 442,496 | 430,976 |
Deferred revenue | 71,328 | 167,730 |
Deferred compensation plan | 101,922 | 96,523 |
Other liabilities | 292,187 | 311,806 |
Total liabilities | 11,679,978 | 11,289,349 |
Redeemable noncontrolling interests / partnership units | ||
Class A units - 12,789,891 and 12,544,477 units outstanding | 862,550 | 778,134 |
Series D cumulative redeemable preferred units - 141,401 and 177,101 units outstanding | 4,535 | 5,428 |
Total redeemable noncontrolling interests / partnership units | 867,085 | 783,562 |
Shareholders' / Partner's Equity | ||
Partners' capital | 8,575,642 | 8,624,751 |
Earnings less than distributions | (4,120,265) | (4,167,184) |
Accumulated other comprehensive (loss) income | (11,385) | 7,664 |
Total Vornado shareholders' equity | 4,443,992 | 4,465,231 |
Noncontrolling interests in consolidated subsidiaries | 646,900 | 642,652 |
Total equity | 5,090,892 | 5,107,883 |
Total liabilities, redeemable noncontrolling interests / partnership units and equity | $ 17,637,955 | $ 17,180,794 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Tenant and other receivables, allowance for doubtful accounts | $ 4,154 | |
Receivable arising from the straight-lining of rents, allowance | 1,644 | |
Deferred leasing costs, accumulated amortization | $ 180,953 | 207,529 |
Identified intangible assets, accumulated amortization | $ 97,749 | $ 172,114 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Preferred shares of beneficial interest: par value per share (in dollars per share) | $ 0 | $ 0 |
Preferred shares of beneficial interest: authorized shares (shares) | 110,000,000 | 110,000,000 |
Preferred shares of beneficial interest: issued shares (shares) | 36,797,580 | 36,798,580 |
Preferred shares of beneficial interest: outstanding shares (shares) | 36,797,580 | 36,798,580 |
Common shares of beneficial interest: par value per share (in dollars per share) | $ 0.04 | $ 0.04 |
Common shares of beneficial interest: authorized shares (shares) | 250,000,000 | 250,000,000 |
Common shares of beneficial interest: issued shares (shares) | 190,761,498 | 190,535,499 |
Common shares of beneficial interest: outstanding shares (shares) | 190,761,498 | 190,535,499 |
Class A Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Outstanding Partnership Units held by Third Parties (units) | 12,789,891 | 12,544,477 |
Cumulative Redeemable Preferred Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Outstanding Partnership Units held by Third Parties (units) | 141,401 | 177,101 |
Vornado Realty L.P. | ||
ASSETS | ||
Tenant and other receivables, allowance for doubtful accounts | $ 4,154 | |
Receivable arising from the straight-lining of rents, allowance | 1,644 | |
Deferred leasing costs, accumulated amortization | $ 180,953 | 207,529 |
Identified intangible assets, accumulated amortization | $ 97,749 | $ 172,114 |
Vornado Realty L.P. | Class A Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Outstanding Partnership Units held by Third Parties (units) | 12,789,891 | 12,544,477 |
Vornado Realty L.P. | Cumulative Redeemable Preferred Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Outstanding Partnership Units held by Third Parties (units) | 141,401 | 177,101 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
REVENUES: | ||
Revenues | $ 534,668 | $ 536,437 |
EXPENSES: | ||
Operating | (246,895) | (237,602) |
Depreciation and amortization | (116,709) | (108,686) |
General and administrative | (58,020) | (42,533) |
(Expense) benefit from deferred compensation plan liability | (5,433) | 404 |
Transaction related costs and other | (149) | (13,156) |
Total expenses | (427,206) | (401,573) |
Income (loss) from partially owned entities | 7,320 | (9,904) |
Loss from real estate fund investments | (167) | (8,807) |
Interest and other investment income (loss), net | 5,045 | (24,384) |
Income (loss) from deferred compensation plan assets | 5,433 | (404) |
Interest and debt expense | (102,463) | (88,166) |
Net gains on disposition of wholly owned and partially owned assets | 220,294 | 0 |
Income before income taxes | 242,924 | 3,199 |
Income tax expense | (29,743) | (2,554) |
Income from continuing operations | 213,181 | 645 |
Loss from discontinued operations | (137) | (363) |
Net income | 213,044 | 282 |
Less net (income) loss attributable to noncontrolling interests / noncontrolling interests in consolidated subsidiaries | ||
Consolidated subsidiaries | (6,820) | 8,274 |
Operating Partnership | (12,202) | 1,124 |
Net income attributable to Vornado / Vornado Realty L.P. | 194,022 | 9,680 |
Preferred share dividends / unit distributions | (12,534) | (13,035) |
Preferred share / unit issuance costs | 0 | (14,486) |
NET INCOME (LOSS) attributable to common shareholders / Class A unitholders | $ 181,488 | $ (17,841) |
INCOME (LOSS) PER COMMON SHARE – BASIC: | ||
Net income (loss) per common share (in dollars per share) | $ 0.95 | $ (0.09) |
Weighted average shares outstanding, basic (in shares) | 190,689 | 190,081 |
INCOME (LOSS) PER COMMON SHARE – DILUTED: | ||
Net income (loss) per common share (in dollars per share) | $ 0.95 | $ (0.09) |
Weighted average shares outstanding, diluted (in shares) | 190,996 | 190,081 |
Vornado Realty L.P. | ||
REVENUES: | ||
Revenues | $ 534,668 | $ 536,437 |
EXPENSES: | ||
Operating | (246,895) | (237,602) |
Depreciation and amortization | (116,709) | (108,686) |
General and administrative | (58,020) | (42,533) |
(Expense) benefit from deferred compensation plan liability | (5,433) | 404 |
Transaction related costs and other | (149) | (13,156) |
Total expenses | (427,206) | (401,573) |
Income (loss) from partially owned entities | 7,320 | (9,904) |
Loss from real estate fund investments | (167) | (8,807) |
Interest and other investment income (loss), net | 5,045 | (24,384) |
Income (loss) from deferred compensation plan assets | 5,433 | (404) |
Interest and debt expense | (102,463) | (88,166) |
Net gains on disposition of wholly owned and partially owned assets | 220,294 | 0 |
Income before income taxes | 242,924 | 3,199 |
Income tax expense | (29,743) | (2,554) |
Income from continuing operations | 213,181 | 645 |
Loss from discontinued operations | (137) | (363) |
Net income | 213,044 | 282 |
Less net (income) loss attributable to noncontrolling interests / noncontrolling interests in consolidated subsidiaries | ||
Consolidated subsidiaries | (6,820) | 8,274 |
Operating Partnership | (12,202) | 1,124 |
Net income attributable to Vornado / Vornado Realty L.P. | 206,224 | 8,556 |
Preferred share dividends / unit distributions | (12,575) | (13,084) |
Preferred share / unit issuance costs | 0 | (14,486) |
NET INCOME (LOSS) attributable to common shareholders / Class A unitholders | $ 193,649 | $ (19,014) |
INCOME (LOSS) PER CLASS A UNIT – BASIC: | ||
Net income (loss) per Class A unit (in dollars per unit) | $ 0.95 | $ (0.10) |
Weighted average units outstanding, basic (in shares) | 202,772 | 201,929 |
INCOME (LOSS) PER CLASS A UNIT – DILUTED: | ||
Net income (loss) per Class A unit (in dollars per unit) | $ 0.95 | $ (0.10) |
Weighted average units outstanding, diluted (in shares) | 203,344 | 201,929 |
Rental revenues | ||
REVENUES: | ||
Revenues | $ 499,877 | $ 500,420 |
Rental revenues | Vornado Realty L.P. | ||
REVENUES: | ||
Revenues | 499,877 | 500,420 |
Fee and other income | ||
REVENUES: | ||
Revenues | 34,791 | 36,017 |
Fee and other income | Vornado Realty L.P. | ||
REVENUES: | ||
Revenues | $ 34,791 | $ 36,017 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 213,044 | $ 282 |
Other comprehensive (loss) income: | ||
(Reduction) increase in value of interest rate swaps | (17,029) | 10,258 |
Amount reclassified from accumulated other comprehensive loss relating to a nonconsolidated subsidiary | (2,311) | 0 |
Other comprehensive (loss) income of nonconsolidated subsidiaries | (985) | 346 |
Comprehensive income | 192,719 | 10,886 |
Less comprehensive (income) loss attributable to noncontrolling interests in consolidated subsidiaries | (17,746) | 8,744 |
Comprehensive income attributable to Vornado / Vornado Realty L.P. | 174,973 | 19,630 |
Vornado Realty L.P. | ||
Net income | 213,044 | 282 |
Other comprehensive (loss) income: | ||
(Reduction) increase in value of interest rate swaps | (17,029) | 10,258 |
Amount reclassified from accumulated other comprehensive loss relating to a nonconsolidated subsidiary | (2,311) | 0 |
Other comprehensive (loss) income of nonconsolidated subsidiaries | (985) | 346 |
Comprehensive income | 192,719 | 10,886 |
Less comprehensive (income) loss attributable to noncontrolling interests in consolidated subsidiaries | (6,820) | 8,274 |
Comprehensive income attributable to Vornado / Vornado Realty L.P. | $ 185,899 | $ 19,160 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Real estate fund investments | Other | Preferred Units | Common Shares | Additional Capital | Earnings Less Than Distributions | Accumulated Other Comprehensive (Loss) Income | Non- controlling Interests in Consolidated Subsidiaries | Non- controlling Interests in Consolidated SubsidiariesReal estate fund investments | Non- controlling Interests in Consolidated SubsidiariesOther | Vornado Realty L.P. | Vornado Realty L.P.Real estate fund investments | Vornado Realty L.P.Other | Vornado Realty L.P.Preferred Units | Vornado Realty L.P.Class A Units Owned by Vornado | Vornado Realty L.P.Earnings Less Than Distributions | Vornado Realty L.P.Accumulated Other Comprehensive (Loss) Income | Vornado Realty L.P.Non- controlling Interests in Consolidated Subsidiaries | Vornado Realty L.P.Non- controlling Interests in Consolidated SubsidiariesReal estate fund investments | Vornado Realty L.P.Non- controlling Interests in Consolidated SubsidiariesOther |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Cumulative effect of accounting change | $ 14,519 | $ 122,893 | $ (108,374) | $ 14,519 | $ 122,893 | $ (108,374) | |||||||||||||||
Beginning balance, shares at Dec. 31, 2017 | 36,800 | 189,984 | 36,800 | 189,984 | |||||||||||||||||
Beginning balance, value at Dec. 31, 2017 | 5,007,701 | $ 891,988 | $ 7,577 | $ 7,492,658 | (4,183,253) | 128,682 | $ 670,049 | 5,007,701 | $ 891,988 | $ 7,500,235 | (4,183,253) | 128,682 | $ 670,049 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income (loss) attributable to Vornado / Vornado Realty L.P. | 9,680 | 9,680 | 8,556 | 8,556 | |||||||||||||||||
Net income attributable to redeemable partnership units | 1,124 | 1,124 | 1,124 | ||||||||||||||||||
Net income (loss) attributable to noncontrolling interests in consolidated subsidiaries | (8,274) | $ (5,369) | (8,274) | (8,274) | (8,274) | ||||||||||||||||
Dividends on common shares | (119,764) | (119,764) | |||||||||||||||||||
Distributions to Vornado | (119,764) | (119,764) | |||||||||||||||||||
Dividends on preferred shares / Distributions to preferred unitholders | (13,035) | (13,035) | (13,035) | (13,035) | |||||||||||||||||
Preferred unit issuance costs | (14,486) | (14,486) | (14,486) | (14,486) | |||||||||||||||||
Common shares issued: / Class A Units issued to Vornado | |||||||||||||||||||||
Upon redemption of Class A units, at redemption value, shares | 118 | 118 | |||||||||||||||||||
Upon redemption of Class A units, at redemption value, value | 8,392 | $ 5 | 8,387 | 8,392 | $ 8,392 | ||||||||||||||||
Under Vornado's employees' share option plan, shares | 55 | 55 | |||||||||||||||||||
Under Vornado's employees' share option plan, value | 3,434 | $ 2 | 3,432 | 3,434 | $ 3,434 | ||||||||||||||||
Under Vornado's dividend reinvestment plan, shares | 5 | 5 | |||||||||||||||||||
Under Vornado's dividend reinvestment plan, value | 335 | $ 0 | 335 | 335 | $ 335 | ||||||||||||||||
Contributions: | |||||||||||||||||||||
Contributions | 8,370 | 8,370 | $ 8,370 | $ 8,370 | |||||||||||||||||
Distributions: | |||||||||||||||||||||
Distributions | (7,906) | (1,910) | $ (3,450) | $ (1,910) | $ (3,450) | (1,910) | $ (3,450) | (1,910) | $ (3,450) | ||||||||||||
Preferred share issuance | (663) | $ (663) | (663) | $ (663) | |||||||||||||||||
Deferred compensation shares and options, shares | 7 | 7 | |||||||||||||||||||
Deferred compensation shares and options, value | 177 | $ 0 | 298 | (121) | 177 | $ 298 | (121) | ||||||||||||||
Other comprehensive (loss) income of nonconsolidated subsidiaries | 346 | 346 | 346 | 346 | |||||||||||||||||
(Reduction) Increase in value of interest rate swaps | 10,258 | 10,258 | 10,258 | 10,258 | |||||||||||||||||
Unearned Out-Performance Plan awards acceleration | 9,046 | 9,046 | 9,046 | 9,046 | |||||||||||||||||
Adjustments to carry redeemable Class A units at redemption value | 114,856 | 114,856 | 114,856 | 114,856 | |||||||||||||||||
Redeemable partnership units' share of above adjustments | (654) | (654) | (654) | (654) | |||||||||||||||||
Other, value | 0 | $ 0 | 1 | (2) | 0 | 1 | 0 | $ 1 | (2) | 0 | 1 | ||||||||||
Ending balance, shares at Mar. 31, 2018 | 36,800 | 190,169 | 36,800 | 190,169 | |||||||||||||||||
Ending balance, value at Mar. 31, 2018 | 5,024,878 | $ 891,325 | $ 7,584 | 7,629,013 | (4,198,088) | 30,258 | 664,786 | 5,024,878 | $ 891,325 | $ 7,636,597 | (4,198,088) | 30,258 | 664,786 | ||||||||
Beginning balance, shares at Dec. 31, 2018 | 36,800 | 190,535 | 36,800 | 190,535 | |||||||||||||||||
Beginning balance, value at Dec. 31, 2018 | 5,107,883 | $ 891,294 | $ 7,600 | 7,725,857 | (4,167,184) | 7,664 | 642,652 | 5,107,883 | $ 891,294 | $ 7,733,457 | (4,167,184) | 7,664 | 642,652 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income (loss) attributable to Vornado / Vornado Realty L.P. | 194,022 | 194,022 | 206,224 | 206,224 | |||||||||||||||||
Net income attributable to redeemable partnership units | (12,202) | (12,202) | (12,202) | ||||||||||||||||||
Net income (loss) attributable to noncontrolling interests in consolidated subsidiaries | 6,820 | 2,737 | 6,820 | 6,820 | 6,820 | ||||||||||||||||
Dividends on common shares | (125,876) | (125,876) | |||||||||||||||||||
Distributions to Vornado | (125,876) | (125,876) | |||||||||||||||||||
Dividends on preferred shares / Distributions to preferred unitholders | (12,534) | (12,534) | (12,534) | (12,534) | |||||||||||||||||
Common shares issued: / Class A Units issued to Vornado | |||||||||||||||||||||
Upon redemption of Class A units, at redemption value, shares | 48 | 48 | |||||||||||||||||||
Upon redemption of Class A units, at redemption value, value | 3,181 | $ 2 | 3,179 | 3,181 | $ 3,181 | ||||||||||||||||
Under Vornado's employees' share option plan, shares | 162 | 162 | |||||||||||||||||||
Under Vornado's employees' share option plan, value | (7,521) | $ 7 | 1,164 | (8,692) | (7,521) | $ 1,171 | (8,692) | ||||||||||||||
Under Vornado's dividend reinvestment plan, shares | 5 | 5 | |||||||||||||||||||
Under Vornado's dividend reinvestment plan, value | 340 | $ 0 | 340 | 340 | $ 340 | ||||||||||||||||
Contributions: | |||||||||||||||||||||
Contributions | 3,384 | 1,810 | 3,384 | 1,810 | $ 3,384 | 1,810 | $ 3,384 | 1,810 | |||||||||||||
Distributions: | |||||||||||||||||||||
Distributions | (8,488) | $ 0 | $ (7,764) | $ 0 | $ (7,764) | $ (7,764) | $ (7,764) | ||||||||||||||
Conversion of Series A preferred shares to common shares / Conversion of Series A preferred units to Class A units, shares | (1) | 2 | (1) | 2 | |||||||||||||||||
Conversion of Series A preferred shares to common shares / Conversion of Series A preferred units to Class A units, value | 0 | $ (31) | $ 0 | 31 | 0 | $ (31) | $ 31 | ||||||||||||||
Deferred compensation shares and options, shares | 9 | 9 | |||||||||||||||||||
Deferred compensation shares and options, value | 297 | $ 0 | 297 | $ 0 | 297 | $ 297 | 0 | ||||||||||||||
Amount reclassified related to a nonconsolidated subsidiary | (2,311) | (2,311) | (2,311) | (2,311) | |||||||||||||||||
Other comprehensive (loss) income of nonconsolidated subsidiaries | (985) | (985) | (985) | (985) | |||||||||||||||||
(Reduction) Increase in value of interest rate swaps | (17,029) | (17,029) | (17,029) | (17,029) | |||||||||||||||||
Unearned Out-Performance Plan awards acceleration | 11,720 | 11,720 | 11,720 | 11,720 | |||||||||||||||||
Adjustments to carry redeemable Class A units at redemption value | (65,818) | (65,818) | (65,818) | (65,818) | |||||||||||||||||
Redeemable partnership units' share of above adjustments | 1,276 | 1,276 | 1,276 | 1,276 | |||||||||||||||||
Other, shares | (1) | (1) | |||||||||||||||||||
Other, value | (3) | 0 | $ (1) | (2) | (3) | $ 0 | (1) | (2) | |||||||||||||
Ending balance, shares at Mar. 31, 2019 | 36,798 | 190,761 | 36,798 | 190,761 | |||||||||||||||||
Ending balance, value at Mar. 31, 2019 | $ 5,090,892 | $ 891,263 | $ 7,609 | $ 7,676,770 | $ (4,120,265) | $ (11,385) | $ 646,900 | $ 5,090,892 | $ 891,263 | $ 7,684,379 | $ (4,120,265) | $ (11,385) | $ 646,900 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | |
Cash Flows from Operating Activities: | ||
Net income | $ 213,044 | $ 282 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net gains on disposition of wholly owned and partially owned assets | (220,294) | 0 |
Depreciation and amortization (including amortization of deferred financing costs) | 123,135 | 115,337 |
Stock-based compensation expense | 31,654 | 13,669 |
Distributions of income from partially owned entities | 14,316 | 20,559 |
Equity in net (income) loss of partially owned entities | (7,320) | 9,904 |
Amortization of below-market leases, net | (6,525) | (10,581) |
Straight-lining of rents | 1,140 | (7,430) |
(Increase) decrease in fair value of marketable securities | (461) | 32,986 |
Net realized and unrealized (gain) loss on real estate fund investments | (100) | 911 |
Return of capital from real estate fund investments | 0 | 14,966 |
Other non-cash adjustments | 1,639 | 1,067 |
Changes in operating assets and liabilities: | ||
Real estate fund investments | (4,000) | (2,950) |
Tenant and other receivables, net | (835) | (5,702) |
Prepaid assets | (82,862) | 77,053 |
Other assets | (6,044) | (15,151) |
Accounts payable and accrued expenses | 10,426 | 19,835 |
Other liabilities | (2,795) | 663 |
Net cash provided by operating activities | 64,118 | 265,418 |
Cash Flows from Investing Activities: | ||
Proceeds from sale of condominium units at 220 Central Park South | 425,484 | 0 |
Proceeds from sales of marketable securities | 167,755 | 0 |
Development costs and construction in progress | (143,302) | (86,808) |
Moynihan Train Hall expenditures | (123,533) | 0 |
Proceeds from sale of real estate and related investment | 108,512 | 0 |
Additions to real estate | (55,759) | (54,284) |
Distributions of capital from partially owned entities | 24,851 | 2,086 |
Investments in partially owned entities | (918) | (7,519) |
Proceeds from repayments of loans receivable | 204 | 0 |
Acquisitions of real estate and other | 0 | (44,095) |
Net cash provided by (used in) investing activities | 403,294 | (190,620) |
Cash Flows from Financing Activities: | ||
Repayments of borrowings | (686,555) | (144,822) |
Proceeds from borrowings | 456,741 | 185,701 |
Dividends paid on common shares / Distributions to Vornado | (125,876) | (119,764) |
Moynihan Train Hall reimbursement from Empire State Development | 123,533 | 0 |
Distribution to noncontrolling interests / redeemable security holders and noncontrolling interests in consolidated subsidiaries | (16,252) | (13,266) |
Dividends paid on preferred shares / Distributions to preferred unitholders | (12,534) | (16,628) |
Debt issuance costs | (10,860) | (3,300) |
Repurchase of shares / Class A units related to stock compensation arrangements and related tax withholdings and other | (8,692) | (784) |
Contributions from noncontrolling interests / noncontrolling interests in consolidated subsidiaries | 5,194 | 8,370 |
Proceeds received from exercise of employee share options and other | 1,511 | 3,769 |
Redemption of preferred shares / units | (893) | (470,000) |
Debt prepayment and extinguishment costs | 0 | (818) |
Net cash used in financing activities | (274,683) | (571,542) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 192,729 | (496,744) |
Cash and cash equivalents and restricted cash at beginning of period | 716,905 | 1,914,812 |
Cash and cash equivalents and restricted cash at end of period | 909,634 | 1,418,068 |
Reconciliation of Cash and Cash Equivalents and Restricted Cash: | ||
Cash and cash equivalents at beginning of period | 570,916 | 1,817,655 |
Restricted cash at beginning of period | 145,989 | 97,157 |
Cash and cash equivalents and restricted cash at beginning of period | 716,905 | 1,914,812 |
Cash and cash equivalents at end of period | 307,047 | 1,327,384 |
Restricted cash at end of period | 593,759 | 90,684 |
Restricted cash included in assets held for sale at end of period | 8,828 | 0 |
Cash and cash equivalents and restricted cash at end of period | 909,634 | 1,418,068 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash payments for interest, excluding capitalized interest of $21,371 and $13,272 | 85,796 | 84,566 |
Cash payments for income taxes | 8,741 | 1,646 |
Reclassification of assets and related liabilities held for sale: | ||
Assets held for sale | 3,027,058 | 0 |
Liabilities related to assets held for sale | 1,097,350 | 0 |
Lease liabilities arising from the recognition of right-of-use assets | 526,866 | 0 |
Reclassification of condominium units from development costs and construction in progress to 220 Central Park South condominium units ready for sale | 395,893 | 0 |
Accrued capital expenditures included in accounts payable and accrued expenses | 77,115 | 51,431 |
Adjustments to carry redeemable Class A units at redemption value | (65,818) | 114,856 |
Write-off of fully depreciated assets | (58,309) | (15,707) |
Amounts related to our investment in Pennsylvania Real Estate Investment Trust reclassified from investments in partially owned entities and accumulated other comprehensive income to marketable securities upon conversion of operating partnership units to common shares | 54,962 | 0 |
Vornado Realty L.P. | ||
Cash Flows from Operating Activities: | ||
Net income | 213,044 | 282 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net gains on disposition of wholly owned and partially owned assets | (220,294) | 0 |
Depreciation and amortization (including amortization of deferred financing costs) | 123,135 | 115,337 |
Stock-based compensation expense | 31,654 | 13,669 |
Distributions of income from partially owned entities | 14,316 | 20,559 |
Equity in net (income) loss of partially owned entities | (7,320) | 9,904 |
Amortization of below-market leases, net | (6,525) | (10,581) |
Straight-lining of rents | 1,140 | (7,430) |
(Increase) decrease in fair value of marketable securities | (461) | 32,986 |
Net realized and unrealized (gain) loss on real estate fund investments | (100) | 911 |
Return of capital from real estate fund investments | 0 | 14,966 |
Other non-cash adjustments | 1,639 | 1,067 |
Changes in operating assets and liabilities: | ||
Real estate fund investments | (4,000) | (2,950) |
Tenant and other receivables, net | (835) | (5,702) |
Prepaid assets | (82,862) | 77,053 |
Other assets | (6,044) | (15,151) |
Accounts payable and accrued expenses | 10,426 | 19,835 |
Other liabilities | (2,795) | 663 |
Net cash provided by operating activities | 64,118 | 265,418 |
Cash Flows from Investing Activities: | ||
Proceeds from sale of condominium units at 220 Central Park South | 425,484 | 0 |
Proceeds from sales of marketable securities | 167,755 | 0 |
Development costs and construction in progress | (143,302) | (86,808) |
Moynihan Train Hall expenditures | (123,533) | 0 |
Proceeds from sale of real estate and related investment | 108,512 | 0 |
Additions to real estate | (55,759) | (54,284) |
Distributions of capital from partially owned entities | 24,851 | 2,086 |
Investments in partially owned entities | (918) | (7,519) |
Proceeds from repayments of loans receivable | 204 | 0 |
Acquisitions of real estate and other | 0 | (44,095) |
Net cash provided by (used in) investing activities | 403,294 | (190,620) |
Cash Flows from Financing Activities: | ||
Repayments of borrowings | (686,555) | (144,822) |
Proceeds from borrowings | 456,741 | 185,701 |
Dividends paid on common shares / Distributions to Vornado | (125,876) | (119,764) |
Moynihan Train Hall reimbursement from Empire State Development | 123,533 | 0 |
Distribution to noncontrolling interests / redeemable security holders and noncontrolling interests in consolidated subsidiaries | (16,252) | (13,266) |
Dividends paid on preferred shares / Distributions to preferred unitholders | (12,534) | (16,628) |
Debt issuance costs | (10,860) | (3,300) |
Repurchase of shares / Class A units related to stock compensation arrangements and related tax withholdings and other | (8,692) | (784) |
Contributions from noncontrolling interests / noncontrolling interests in consolidated subsidiaries | 5,194 | 8,370 |
Proceeds received from exercise of employee share options and other | 1,511 | 3,769 |
Redemption of preferred shares / units | (893) | (470,000) |
Debt prepayment and extinguishment costs | 0 | (818) |
Net cash used in financing activities | (274,683) | (571,542) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 192,729 | (496,744) |
Cash and cash equivalents and restricted cash at beginning of period | 716,905 | 1,914,812 |
Cash and cash equivalents and restricted cash at end of period | 909,634 | 1,418,068 |
Reconciliation of Cash and Cash Equivalents and Restricted Cash: | ||
Cash and cash equivalents at beginning of period | 570,916 | 1,817,655 |
Restricted cash at beginning of period | 145,989 | 97,157 |
Cash and cash equivalents and restricted cash at beginning of period | 716,905 | 1,914,812 |
Cash and cash equivalents at end of period | 307,047 | 1,327,384 |
Restricted cash at end of period | 593,759 | 90,684 |
Restricted cash included in assets held for sale at end of period | 8,828 | 0 |
Cash and cash equivalents and restricted cash at end of period | 909,634 | 1,418,068 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash payments for interest, excluding capitalized interest of $21,371 and $13,272 | 85,796 | 84,566 |
Cash payments for income taxes | 8,741 | 1,646 |
Reclassification of assets and related liabilities held for sale: | ||
Assets held for sale | 3,027,058 | 0 |
Liabilities related to assets held for sale | 1,097,350 | 0 |
Lease liabilities arising from the recognition of right-of-use assets | 526,866 | 0 |
Reclassification of condominium units from development costs and construction in progress to 220 Central Park South condominium units ready for sale | 395,893 | 0 |
Accrued capital expenditures included in accounts payable and accrued expenses | 77,115 | 51,431 |
Adjustments to carry redeemable Class A units at redemption value | (65,818) | 114,856 |
Write-off of fully depreciated assets | (58,309) | (15,707) |
Amounts related to our investment in Pennsylvania Real Estate Investment Trust reclassified from investments in partially owned entities and accumulated other comprehensive income to marketable securities upon conversion of operating partnership units to common shares | $ 54,962 | $ 0 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Vornado Realty L.P. | ||
Capitalized interest | $ 21,371 | $ 13,272 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Vornado Realty Trust (“Vornado”) is a fully-integrated real estate investment trust (“REIT”) and conducts its business through, and substantially all of its interests in properties are held by, Vornado Realty L.P., a Delaware limited partnership (the “Operating Partnership”). Vornado is the sole general partner of, and owned approximately 93.4% of the common limited partnership interest in the Operating Partnership as of March 31, 2019 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying consolidated financial statements are unaudited and include the accounts of Vornado and the Operating Partnership and their consolidated subsidiaries. All inter-company amounts have been eliminated and 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 (“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, 2018 , as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the 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 months ended March 31, 2019 are not necessarily indicative of the operating results for the full year. Certain prior year balances have been reclassified in order to conform to the current period presentation. For the three months ended March 31, 2018, expense of $1,100,000 related to New York City Unincorporated Business Tax was reclassified from "general and administrative" expenses to "income tax expense" on our consolidated statements of income. In addition, for the three months ended March 31, 2018, "property rentals" and "tenant expense reimbursements" of $440,110,000 and $60,310,000 , respectively, were grouped into "rental revenues" on our consolidated statements of income in accordance with Accounting Standards Codification ("ASC") Topic 205, |
Recently Issued Accounting Lite
Recently Issued Accounting Literature | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Literature | Recently Issued Accounting Literature In February 2016, the Financial Accounting Standards Board ("FASB") issued an update (“ASU 2016-02”) establishing ASC Topic 842, Leases ("ASC 842"), 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 two-method 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 ("ROU") and a lease liability for all leases with a term of greater than 12 months. Lease liabilities equal the present value of future lease payments. Right-of-use assets equal the lease liabilities less adjustments for accrued rent expense, initial direct costs and prepaid lease payments. Leases with a term of 12 months or less will be accounted for similar to the previously existing lease guidance under ASC Topic 840, Leases ("ASC 840"). Lease expense is recognized 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 ASC 840. We adopted this standard effective January 1, 2019. We have completed our evaluation of the overall impact of the adoption of ASU 2016-02 on our consolidated financial statements and accounting policies. In transitioning to ASC 842, we elected to use the practical expedient package available to us and did not elect to use hindsight. We have 12 ground leases, which are classified as operating leases, for which we are required to record a right-of-use asset and a lease liability equal to the present value of the future lease payments, and will continue to recognize expense on a straight-line basis for these leases. On January 1, 2019, we recorded an aggregate of $526,866,000 of right-of-use assets and a corresponding $526,866,000 of lease liabilities as a result of the adoption of this standard (see Note 20 - Leases ). 3 . Recently Issued Accounting Literature - continued Under ASU 2016-02, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, beginning January 1, 2019, we no longer capitalize internal leasing costs and instead expense these costs as incurred, as a component of "general and administrative" expense on our consolidated statements of income. For the three months ended March 31, 2018, we capitalized $ 1,348,000 of internal leasing costs. In addition, the new standard requires changes to our provision policy for lease receivables. Under ASC 842, we must assess whether it is probable that we will collect substantially all of the lease payments based on the credit risk factors of our tenants. Changes to the collectability of our operating leases are recorded as adjustments to "rental revenues" on our consolidated statements of income which resulted in a $890,000 decrease for the three months ending March 31, 2019. In February 2016, the FASB issued an update (“ASU 2016-13”) Measurement of Credit Losses on Financial Instruments establishing ASC Topic 326, Financial Instruments - Credit Losses (“ASC 326”), as amended by subsequent ASUs on the topic. ASU 2016-13 changes how entities will account for credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current “incurred loss” model with an “expected loss” model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the financial asset. ASU 2016-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2019. We are currently evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements, but do not believe the adoption of this standard will have a material impact on our consolidated financial statements. In August 2018, the FASB issued an update (“ASU 2018-13”) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement to ASC Topic 820, Fair Value Measurement (“ASC 820”). ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, and/or adding certain disclosures. ASU 2018-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2019. We elected to early adopt ASU 2018-13 effective January 1, 2019. The adoption of this update did not have a material impact on our consolidated financial statements and disclosures. In October 2018, the FASB issued an update ("ASU 2018-16") Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes to ASC Topic 815, Derivatives and Hedging |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Our revenues primarily consist of rental revenues and fee and other income. We operate in two reportable segments: New York and Other, with a significant portion of our revenues included in the New York segment. We have the following revenue sources and revenue recognition policies: • Rental revenues include revenues from the leasing of space at our properties to tenants and revenues from the Hotel Pennsylvania, trade shows and tenant services. ◦ Revenues from the leasing of space at our properties to tenants includes (i) lease components, including fixed and variable lease payments, and nonlease components which include reimbursement of common area maintenance expenses, and (ii) reimbursement of real estate taxes and insurance expenses. As lessor, we have elected to combine the lease and nonlease components of our operating lease agreements and account for the components as a single lease component in accordance with ASC 842. Lease revenues and reimbursement of common area maintenance, real estate taxes and insurance are presented on the following page as "property rentals." Revenues derived from fixed lease payments are recognized on a straight-line basis over the non-cancelable period of the lease, together with renewal options that are reasonably certain of being exercised. We commence rental revenue recognition when the underlying asset is available for use by the lessee. Revenue derived from the reimbursement of real estate taxes, insurance expenses and common area maintenance expenses are generally recognized in the same period as the related expenses are incurred. ◦ Hotel revenue arising from the operation of Hotel Pennsylvania consists of room revenue, food and beverage revenue, and banquet revenue. Room revenue is recognized when the rooms are made available for the guest, in accordance with ASC 842. ◦ Trade shows revenue arising from the operation of trade shows is primarily booth rentals. This revenue is recognized upon the occurrence of the trade shows when the trade show booths are made available for use by the exhibitors, in accordance with ASC 842. ◦ Tenant services revenue arises from sub-metered electric, elevator, trash removal and other services provided to tenants at their request. This revenue is recognized as the services are transferred in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"). • Fee and other income includes management, leasing and other revenue arising from contractual agreements with third parties or with partially owned entities, and includes Building Maintenance Service (“BMS”) cleaning, engineering and security services. This revenue is recognized as the services are transferred in accordance with ASC 606. 4 . Revenue Recognition - continued Below is a summary of our revenues by segment. Additional financial information related to these reportable segments for the three months ended March 31, 2019 and 2018 is set forth in Note 22 - Segment Information . (Amounts in thousands) For the Three Months Ended March 31, 2019 Total New York Other Property rentals $ 457,741 $ 385,803 $ 71,938 Hotel Pennsylvania 12,609 12,609 — Trade shows 16,956 — 16,956 Lease revenues 487,306 398,412 88,894 Tenant services 12,571 9,225 3,346 Rental revenues 499,877 407,637 92,240 BMS cleaning fees 29,785 31,757 (1,972 ) (1) Management and leasing fees 2,237 2,251 (14 ) Other income 2,769 1,640 1,129 Fee and other income 34,791 35,648 (857 ) Total revenues $ 534,668 $ 443,285 $ 91,383 ____________________ (1) Represents the elimination of theMART and 555 California Street BMS cleaning fees which are included as income in the New York segment. (Amounts in thousands) For the Three Months Ended March 31, 2018 Total New York Other Property rentals $ 454,403 $ 389,385 $ 65,018 Hotel Pennsylvania 14,680 14,680 — Trade shows 18,873 — 18,873 Lease revenues 487,956 404,065 83,891 Tenant services 12,464 9,771 2,693 Rental revenues 500,420 413,836 86,584 BMS cleaning fees 28,355 30,153 (1,798 ) (1) Management and leasing fees 2,764 2,481 283 Other income 4,898 2,014 2,884 Fee and other income 36,017 34,648 1,369 Total revenues $ 536,437 $ 448,484 $ 87,953 ____________________ (1) |
Real Estate Fund Investments
Real Estate Fund Investments | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate Fund Investments [Abstract] | |
Real Estate Fund Investments | Real Estate Fund Investments . We are the general partner and investment manager of Vornado Capital Partners Real Estate Fund (the “Fund”) and own a 25.0% interest in the Fund, which had an initial eight -year term ending February 2019. On January 29, 2018, the Fund's term was extended to February 2023. The Fund's three -year investment period ended in July 2013 . The Fund is accounted for under ASC Topic 946, Financial Services – Investment Companies (“ASC 946”) and its investments are reported on its balance sheet at fair value, with changes in value each period recognized in earnings. We consolidate the accounts of the Fund into our consolidated financial statements, retaining the fair value basis of accounting. We are also the general partner and investment manager of the Crowne Plaza Times Square Hotel Joint Venture (the “Crowne Plaza Joint Venture”) and own a 57.1% interest in the joint venture which owns the 24.7% interest in the Crowne Plaza Times Square Hotel not owned by the Fund. The Crowne Plaza Joint Venture is also accounted for under ASC 946 and we consolidate the accounts of the joint venture into our consolidated financial statements, retaining the fair value basis of accounting. As of March 31, 2019 , we had four real estate fund investments through the Fund and the Crowne Plaza Joint Venture with an aggregate fair value of $322,858,000 , or $6,706,000 below our cost, and had remaining unfunded commitments of $44,194,000 , of which our share was $13,969,000 . At December 31, 2018 , we had four real estate fund investments with an aggregate fair value of $318,758,000 . Below is a summary of loss from the Fund and the Crowne Plaza Joint Venture for the three months ended March 31, 2019 and 2018 . (Amounts in thousands) For the Three Months Ended March 31, 2019 2018 Net investment (loss) income $ (267 ) $ 2,734 Net unrealized gain on held investments 100 — New York City real property transfer tax (the "Transfer Tax") — (10,630 ) (1) Net realized loss on exited investments — (911 ) Loss from real estate fund investments (167 ) (8,807 ) Less (income) loss attributable to noncontrolling interests in consolidated subsidiaries (2,737 ) 5,369 Loss from real estate fund investments attributable to the Operating Partnership (2,904 ) (3,438 ) Less loss attributable to noncontrolling interests in the Operating Partnership 182 212 Loss from real estate fund investments attributable to Vornado $ (2,722 ) $ (3,226 ) ____________________ (1) |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2019 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities Lexington Realty Trust ("Lexington") (NYSE: LXP) On March 1, 2019, we sold all of our 18,468,969 common shares of Lexington realizing net proceeds of $167,698,000 . For the three months ended March 31, 2019, we recorded a $16,068,000 mark-to-market increase in the fair value of our common shares for the period from January 1, 2019 through the date of sale, which is included in "interest and other investment income (loss), net" on our consolidated statements of income. Pennsylvania Real Estate Investment Trust (“PREIT”) (NYSE: PEI) On March 12, 2019 ("Conversion Date"), we converted all of our 6,250,000 operating partnership units into common shares and began accounting for our investment as a marketable security in accordance with ASC Topic 321, Investments - Equity Securities ("ASC 321"). Prior to the Conversion Date, we accounted for our investment under the equity method. For the three months ended March 31, 2019, we recorded a $15,649,000 decrease in the value of our investment, representing the difference between the carrying amount of our investment at the Conversion Date and the fair value of our common shares based on PREIT's March 29, 2019 quarter ended closing share price, which is included in "interest and other investment income (loss), net" on our consolidated statements of income. The table below summarizes the changes of our marketable securities portfolio for the three months ended March 31, 2019 . (Amounts in thousands) For the Three Months Ended March 31, 2019 Total Lexington Realty Trust PREIT Other Balance, December 31, 2018 $ 152,198 $ 151,630 $ — $ 568 Sale of marketable securities (167,755 ) (167,698 ) — (57 ) Transfer of PREIT investment balance at Conversion Date 54,962 — 54,962 — Increase (decrease) in fair value of marketable securities (1) 461 16,068 (15,649 ) 42 Balance, March 31, 2019 $ 39,866 $ — $ 39,313 $ 553 ____________________ (1) Included in “interest and other investment income (loss), net” on our consolidated statements of income (see Note 17 - Interest and Other Investment Income (Loss), Net |
Investments in Partially Owned
Investments in Partially Owned Entities | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Partially Owned Entities | Investments in Partially Owned Entities Alexander’s, Inc. (“Alexander’s”) (NYSE: ALX) As of March 31, 2019 , we own 1,654,068 Alexander’s common shares, or approximately 32.4% of Alexander’s common equity. We manage, lease and develop Alexander’s properties pursuant to agreements which expire in March of each year and are automatically renewable. As of March 31, 2019 , the market value ("fair value" pursuant to ASC 820) of our investment in Alexander’s, based on Alexander’s March 29, 2019 quarter ended closing share price of $376.17 , was $622,211,000 , or $515,425,000 in excess of the carrying amount on our consolidated balance sheet. As of March 31, 2019 , the carrying amount of our investment in Alexander’s, excluding amounts owed to us, exceeds our share of the equity in the net assets of Alexander’s by approximately $39,097,000 . The majority of this basis difference resulted from the excess of our purchase price for the Alexander’s common stock acquired over the book value of Alexander’s net assets. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Alexander’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in Alexander’s net income. The basis difference related to the land will be recognized upon disposition of our investment. Urban Edge Properties (“UE”) (NYSE: UE) On March 4, 2019, we converted to common shares and sold all of our 5,717,184 partnership units of UE, realizing net proceeds of $108,512,000 . The sale resulted in a net gain of $62,395,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income for the three months ended March 31, 2019. 61 Ninth Avenue On January 28, 2019, the joint venture, in which we have a 45.1% interest, completed a $167,500,000 refinancing of 61 Ninth Avenue, a 166,000 square foot newly constructed office and retail property in the Meatpacking district of Manhattan which is fully leased to Aetna and Starbucks. The seven -year interest only loan carries a rate of LIBOR plus 1.35% ( 3.85% as of March 31, 2019) and matures in January 2026. We realized net proceeds of approximately $31,000,000 . The loan replaces the previous $90,000,000 construction loan that bore interest at LIBOR plus 3.05% and was scheduled to mature in 2021. Toys "R" Us, Inc. ("Toys") On September 18, 2017, Toys filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code. In the second quarter of 2018, Toys ceased U.S. operations. On February 1, 2019, the plan of reorganization for Toys "R" Us, Inc., in which we owned a 32.5% interest, was declared effective, and our stock in Toys was canceled. At December 31, 2018, we carried our Toys investment at zero . The canceling of our stock in Toys will result in approximately a $420,000,000 capital loss deduction for tax purposes in 2019 (which if not offset by capital gains will result in a capital loss carry over available for five years). 7 . Investments in Partially Owned Entities - continued Below is a schedule summarizing our investments in partially owned entities. (Amounts in thousands) Percentage Ownership at Balance as of March 31, 2019 December 31, 2018 Investments: Partially owned office buildings/land (1) Various $ 478,240 $ 499,005 Alexander’s 32.4% 106,786 107,983 PREIT (2) N/A — 59,491 UE (3) N/A — 45,344 Other investments (4) Various 145,238 146,290 $ 730,264 $ 858,113 Investments in partially owned entities included in other liabilities (5) : 330 Madison Avenue 25.0% $ (60,054 ) $ (58,117 ) 7 West 34th Street 53.0% (51,464 ) (51,579 ) 85 Tenth Avenue 49.9% (5,857 ) — $ (117,375 ) $ (109,696 ) ____________________ (1) Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 512 West 22nd Street, 61 Ninth Avenue and others. (2) On March 12, 2019, we converted all of our PREIT operating partnership units into common shares and began accounting for our investment as a marketable security in accordance with ASC 321 (see Note 6 - Marketable Securities ). (3) Sold on March 4, 2019 (see page 25 for details). (4) Includes interests in Independence Plaza, Fashion Centre Mall/Washington Tower, Rosslyn Plaza, 50-70 West 93rd Street and others. (5) Our negative basis results from distributions in excess of our investment. Below is a schedule of net income (loss) from partially owned entities. (Amounts in thousands) Percentage For the Three Months Ended March 31, 2019 2018 Our share of net income (loss): Alexander's (see page 25 for details): Equity in net income (loss) (1) 32.4% $ 5,717 $ (3,209 ) Management, leasing and development fees 1,057 1,208 6,774 (2,001 ) Partially owned office buildings (2) Various 106 (4,283 ) Other investments (3) Various 440 (3,620 ) $ 7,320 $ (9,904 ) ____________________ (1) 2018 includes our $7,708 share of Alexander's disputed additional Transfer Tax related to the November 2012 sale of Kings Plaza Regional Shopping Center based on the precedent established by the Tax Tribunal's decision regarding One Park Avenue (see Note 5 - Real Estate Fund Investments ). (2) Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 7 West 34th Street, 330 Madison Avenue, 512 West 22nd Street, 85 Tenth Avenue and others. 2018 includes our $4,978 share of disputed additional Transfer Tax related to the March 2011 acquisition of One Park Avenue (see Note 5 - Real Estate Fund Investments ). (3) |
220 Central Park South 220 CPS
220 Central Park South 220 CPS | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
220 Central Park South 220 CPS | 220 Central Park South ("220 CPS") We are constructing a residential condominium tower containing 397,000 salable square feet at 220 CPS. The development cost of this project (exclusive of land cost) is estimated to be approximately $1.4 billion , of which $1.3 billion has been expended as of March 31, 2019 . During the first quarter of 2019, we closed on the sale of 12 condominium units at 220 CPS for net proceeds aggregating $425,484,000 and resulting in a financial statement net gain of $157,899,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income. In connection with these sales, $26,945,000 of income tax expense was recognized in our consolidated statements of income. From inception to March 31, 2019, we closed on the sale of 23 units for aggregate net proceeds of $640,260,000 which was used to pay $637,000,000 of the $950,000,000 220 CPS loan. |
Properties Held for Sale
Properties Held for Sale | 3 Months Ended |
Mar. 31, 2019 | |
Properties Held for Sale [Abstract] | |
Properties Held for Sale | Properties Held for Sale On April 18, 2019 ("Closing Date"), we entered into a transaction agreement (the "Transaction Agreement") with a group of institutional investors (the "Investors"). The Transaction Agreement provides for a series of transactions (collectively, the "Transaction") pursuant to which (i) prior to the Closing Date, the Operating Partnership contributed its interests in properties located at 640 Fifth Avenue, 655 Fifth Avenue, 666 Fifth Avenue, 689 Fifth Avenue, 697-703 Fifth Avenue, 1535 Broadway and 1540 Broadway (collectively, the “Properties”) to subsidiaries of a newly formed joint venture ("Fifth Avenue and Times Square JV") and (ii) on the Closing Date, transferred a 48.5% common interest in Fifth Avenue and Times Square JV to the Investors. The 48.5% common interest in the joint venture represents an effective 47.2% interest in the Properties. The Properties include approximately 489,000 square feet of retail space, 327,000 square feet of office space, signage associated with 1535 and 1540 Broadway, the parking garage at 1540 Broadway and the theatre at 1535 Broadway. We retained the remaining 51.5% common interest in Fifth Avenue and Times Square JV which represents an effective 51.0% interest in the Properties and an aggregate $1.828 billion of preferred equity interests in certain of the properties. The preferred equity has an annual coupon of 4.25% for the first five years, increasing to 4.75% for the next five years and thereafter at a formulaic rate. It can be redeemed under certain conditions on a tax deferred basis. Net cash proceeds to us from the Transaction are approximately $1.198 billion , after (i) deductions for the repayment of a $390,000,000 mortgage loan on 666 Fifth Avenue and a $140,000,000 mortgage loan on 655 Fifth Avenue, (ii) anticipated proceeds from a new $500,000,000 mortgage loan on 640 Fifth Avenue, (iii) approximately $26,000,000 used to purchase noncontrolling investors' interests and (iv) approximately $56,000,000 of estimated transaction costs. Until the new mortgage closes, Vornado will retain $500 million of preferred equity interests in addition to the $1.828 billion referenced above. The Transaction values the Properties at $5.556 billion resulting in a financial statement net gain of approximately $2.6 billion from the Transaction and the related step-up in our basis of the assets to fair value. The net gain will be recognized in our consolidated statements of income for the three months ended June 30, 2019. Our tax gain is approximately $735,000,000 . We continue to manage the Properties and share control over major decisions of the joint venture. Accordingly, the Properties will be deconsolidated and the joint venture will be accounted for under the equity method from the date of transfer. The table below summarizes our effective ownership interests in the Properties transferred to Fifth Avenue and Times Square JV and our preferred equity interests following the Transaction and the anticipated closing of the mortgage loan on 640 Fifth Avenue. (Amounts in thousands) Vornado's Effective Ownership Interest Percentage Vornado's Preferred Equity Interests Properties transferred to Fifth Avenue and Times Square JV: 640 Fifth Avenue 52.0 % $ — 655 Fifth Avenue 50.0 % 140,000 666 Fifth Avenue 52.0 % 390,000 689 Fifth Avenue 52.0 % 130,000 697-703 Fifth Avenue 44.8 % — 1535 Broadway 52.0 % 628,875 1540 Broadway 52.0 % 538,875 $ 1,827,750 9 . Properties Held for Sale - continued The following table summarizes the assets and liabilities associated with the Properties classified as held for sale: (Amounts in thousands) Balance as of Assets held for sale: Real estate, net $ 2,656,509 Right-of-use asset 49,134 Restricted cash 8,828 Receivable arising from the straight-lining of rents 167,612 Deferred leasing costs, net 70,511 Identified intangible assets, net 74,464 $ 3,027,058 Liabilities related to assets held for sale: Mortgages payable, net $ 971,618 Lease liability 41,235 Deferred revenue 84,497 $ 1,097,350 |
Identified Intangible Assets an
Identified Intangible Assets and Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identified Intangible Assets and Liabilities | Identified Intangible Assets and Liabilities The following summarizes our identified intangible assets (primarily above-market leases) and liabilities (primarily acquired below-market leases) as of March 31, 2019 and December 31, 2018 . (Amounts in thousands) Balance as of March 31, 2019 December 31, 2018 Identified intangible assets: Gross amount $ 131,910 $ 308,895 Accumulated amortization (97,749 ) (172,114 ) Total, net $ 34,161 $ 136,781 Identified intangible liabilities (included in deferred revenue): Gross amount $ 386,512 $ 503,373 Accumulated amortization (321,152 ) (341,779 ) Total, net $ 65,360 $ 161,594 Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase to rental revenues of $6,525,000 and $10,581,000 for the three months ended March 31, 2019 and 2018 , respectively. Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2020 is as follows: (Amounts in thousands) 2020 $ 16,605 2021 11,932 2022 8,800 2023 6,269 2024 2,497 Amortization of all other identified intangible assets (a component of depreciation and amortization expense) was $3,545,000 and $4,876,000 for the three months ended March 31, 2019 and 2018 , respectively. Estimated annual amortization of all other identified intangible assets including acquired in-place leases for each of the five succeeding years commencing January 1, 2020 is as follows: (Amounts in thousands) 2020 $ 6,308 2021 4,779 2022 3,049 2023 2,962 2024 2,350 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt On February 4, 2019, we completed a $95,700,000 refinancing of 435 Seventh Avenue, a 43,000 square foot Manhattan retail property. The interest-only loan carries a rate of LIBOR plus 1.30% ( 3.78% as of March 31, 2019) and matures in 2024. The recourse loan replaces the previous $95,700,000 loan that bore interest at LIBOR plus 2.25% and was scheduled to mature in August 2019. On February 12, 2019, we completed a $580,000,000 refinancing of 100 West 33rd Street, a 1.1 million square foot Manhattan property comprised of 859,000 square feet of office space and the 256,000 square foot Manhattan Mall. The interest-only loan carries a rate of LIBOR plus 1.55% ( 4.03% as of March 31, 2019) and matures in April 2024, with two one -year extension options. The loan replaces the previous $580,000,000 loan that bore interest at LIBOR plus 1.65% and was scheduled to mature in July 2020. Senior Unsecured Notes On March 1, 2019, we called for redemption all of our $400,000,000 5.00% senior unsecured notes. The notes, which were scheduled to mature in January 2022, were redeemed on April 1, 2019 at a redemption price of 105.51% of the principal amount plus accrued interest. In connection therewith, we expensed $22,540,000 relating to debt prepayment costs which is included in "interest and debt expense" on our consolidated statements of income for the three months ended March 31, 2019. Unsecured Revolving Credit Facility On March 26, 2019, we increased to $1.5 billion (from $1.25 billion ) and extended to March 2024 (as fully extended) from February 2022 one of our two unsecured revolving credit facilities. The interest rate on the extended facility was lowered from LIBOR plus 1.00% to LIBOR plus 0.90% . The facility fee remains unchanged at 20 basis points. The following is a summary of our debt: (Amounts in thousands) Weighted Average Interest Rate at Balance as of March 31, 2019 December 31, 2018 Mortgages Payable: Fixed rate 3.52% $ 4,610,526 $ 5,003,465 Variable rate 4.20% 1,945,508 3,212,382 Total 3.72% 6,556,034 8,215,847 Deferred financing costs, net and other (36,845 ) (48,049 ) Total, net $ 6,519,189 $ 8,167,798 Unsecured Debt: Senior unsecured notes 4.21% $ 850,000 $ 850,000 Deferred financing costs, net and other (4,739 ) (5,998 ) Senior unsecured notes, net 845,261 844,002 Unsecured term loan 3.87% 750,000 750,000 Deferred financing costs, net and other (4,924 ) (5,179 ) Unsecured term loan, net 745,076 744,821 Unsecured revolving credit facilities 3.46% 530,000 80,000 Total, net $ 2,120,337 $ 1,668,823 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests/Redeemable Partnership Units | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests/Redeemable Partnership Units | Redeemable Noncontrolling Interests/Redeemable Partnership Units Redeemable noncontrolling interests on Vornado’s consolidated balance sheets and redeemable partnership units on the consolidated balance sheets of the Operating Partnership are primarily comprised of Class A Operating Partnership units held by third parties and are recorded at the greater of their carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to “additional capital” in Vornado’s consolidated statements of changes in equity and to “partners’ capital” on the consolidated balance sheets of the Operating Partnership. (Amounts in thousands) Balance, December 31, 2018 $ 783,562 Net income 12,202 Other comprehensive loss (1,276 ) Distributions (8,488 ) Redemption of Class A units for Vornado common shares, at redemption value (3,181 ) Adjustments to carry redeemable Class A units at redemption value 65,818 Other, net 18,448 Balance, March 31, 2019 $ 867,085 Balance, December 31, 2017 $ 984,937 Net loss (1,124 ) Other comprehensive income 654 Distributions (7,906 ) Redemption of Class A units for Vornado common shares, at redemption value (8,392 ) Adjustments to carry redeemable Class A units at redemption value (114,856 ) Other, net 3,713 Balance, March 31, 2018 $ 857,026 As of March 31, 2019 and December 31, 2018 , the aggregate redemption value of redeemable Class A units of the Operating Partnership, which are those units held by third parties, was $862,550,000 and $778,134,000 , respectively. Redeemable noncontrolling interests/redeemable partnership units exclude our Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for as liabilities in accordance with ASC Topic 480, Distinguishing Liabilities and Equity , because of their possible settlement by issuing a variable number of Vornado common shares. Accordingly, the fair value of these units is included as a component of “other liabilities” on our consolidated balance sheets and aggregated $50,561,000 as of March 31, 2019 and December 31, 2018 |
Shareholders' Equity_Partners'
Shareholders' Equity/Partners' Capital | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity/Partners' Capital | Shareholders' Equity/Partners' Capital The following table sets forth the details of our dividends/distributions per common share/Class A unit and dividends/distributions per share/unit for each class of preferred shares/units of beneficial interest for the three months ended March 31, 2019 and 2018 . Per Share/Unit Shares/Units: 2019 2018 Common shares/Class A units held by Vornado: authorized 250,000,000 shares/units $ 0.66 $ 0.63 Convertible Preferred (1) : 6.5% Series A: authorized 83,977 shares/units (2) 0.8125 0.8125 Cumulative Redeemable Preferred (1) : 5.70% Series K: authorized 12,000,000 shares/units (3) 0.3563 0.3563 5.40% Series L: authorized 12,000,000 shares/units (3) 0.3375 0.3375 5.25% Series M: authorized 12,780,000 shares/units (3) 0.3281 0.3281 ____________________ (1) Dividends on preferred shares and distributions on preferred units are cumulative and are payable quarterly in arrears. (2) Redeemable at the option of Vornado under certain circumstances, at a redemption price of 1.9531 common shares/Class A units per Series A preferred share/unit plus accrued and unpaid dividends/distributions through the date of redemption, or convertible at any time at the option of the holder for 1.9531 common shares/ Class A units per Series A preferred share/unit. (3) Redeemable at Vornado's option at a redemption price of $25.00 per share/unit, plus accrued and unpaid dividends/distributions through the date of redemption. Accumulated Other Comprehensive (Loss) Income The following tables set forth the changes in accumulated other comprehensive (loss) income by component for the three months ended March 31, 2019 and 2018. (Amounts in thousands) Total Marketable securities Pro rata share of nonconsolidated subsidiaries' OCI Interest rate swaps Other For the Three Months Ended March 31, 2019 Balance, December 31, 2018 $ 7,664 $ — $ 3,253 $ 11,759 $ (7,348 ) Net current period other comprehensive (loss) income (16,738 ) — (985 ) (17,029 ) 1,276 Amount reclassified from AOCI (1) (2,311 ) — (2,311 ) — — Balance, March 31, 2019 $ (11,385 ) $ — $ (43 ) $ (5,270 ) $ (6,072 ) For the Three Months Ended March 31, 2018 Balance, December 31, 2017 $ 128,682 $ 109,554 $ 3,769 $ 23,542 $ (8,183 ) Cumulative effect of accounting change (108,374 ) (109,554 ) (1,671 ) 2,851 — Net current period other comprehensive income (loss) 9,950 — 346 10,258 (654 ) Balance, March 31, 2018 $ 30,258 $ — $ 2,444 $ 36,651 $ (8,837 ) ____________________ (1) |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities ("VIEs") Unconsolidated VIEs As of March 31, 2019 and December 31, 2018 , we have several unconsolidated VIEs. We do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities does not give us power over decisions that significantly affect these entities’ economic performance. We account for our investment in these entities under the equity method (see Note 7 – Investments in Partially Owned Entities ). As of March 31, 2019 and December 31, 2018 , the net carrying amount of our investments in these entities was $213,719,000 and $257,882,000 , respectively, and our maximum exposure to loss in these entities is limited to the carrying amount of our investments. Consolidated VIEs Our most significant consolidated VIEs are the Operating Partnership (for Vornado), the Fund and the Crowne Plaza Joint Venture, the Farley joint venture and certain properties that have non-controlling interests. These entities are VIEs because the non-controlling interests do not have substantive kick-out or participating rights. We consolidate these entities because we control all significant business activities. As of March 31, 2019 , the total assets and liabilities of our consolidated VIEs, excluding the Operating Partnership, were $4,601,771,000 and $2,381,310,000 , respectively. As of December 31, 2018 , the total assets and liabilities of our consolidated VIEs, excluding the Operating Partnership, were $4,445,436,000 and $2,533,753,000 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820 defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). 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. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non-financial assets and liabilities. Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of (i) marketable securities, (ii) real estate fund investments, (iii) the assets in our deferred compensation plan (for which there is a corresponding liability on our consolidated balance sheets), (iv) interest rate swaps and (v) mandatorily redeemable instruments (Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units). The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy as of March 31, 2019 and December 31, 2018 , respectively. (Amounts in thousands) As of March 31, 2019 Total Level 1 Level 2 Level 3 Marketable securities $ 39,866 $ 39,866 $ — $ — Real estate fund investments 322,858 — — 322,858 Deferred compensation plan assets ($8,747 included in restricted cash and $93,176 in other assets) 101,923 64,361 — 37,562 Interest rate swaps (included in other assets) 19,613 — 19,613 — Total assets $ 484,260 $ 104,227 $ 19,613 $ 360,420 Mandatorily redeemable instruments (included in other liabilities) $ 50,561 $ 50,561 $ — $ — Interest rate swaps (included in other liabilities) 24,851 — 24,851 — Total liabilities $ 75,412 $ 50,561 $ 24,851 $ — (Amounts in thousands) As of December 31, 2018 Total Level 1 Level 2 Level 3 Marketable securities $ 152,198 $ 152,198 $ — $ — Real estate fund investments 318,758 — — 318,758 Deferred compensation plan assets ($8,402 included in restricted cash and $88,122 in other assets) 96,524 58,716 — 37,808 Interest rate swaps (included in other assets) 27,033 — 27,033 — Total assets $ 594,513 $ 210,914 $ 27,033 $ 356,566 Mandatorily redeemable instruments (included in other liabilities) $ 50,561 $ 50,561 $ — $ — Interest rate swaps (included in other liabilities) 15,236 — 15,236 — Total liabilities $ 65,797 $ 50,561 $ 15,236 $ — 15 . Fair Value Measurements - continued Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued Real Estate Fund Investments As of March 31, 2019 , we had four real estate fund investments with an aggregate fair value of $322,858,000 , or $6,706,000 below our cost. These investments are classified as Level 3. Significant unobservable quantitative inputs used in determining the fair value of each investment include capitalization rates and discount rates. These rates are based on the location, type and nature of each property, current and anticipated market conditions, industry publications and from the experience of our Acquisitions and Capital Markets departments. Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate fund investments as of March 31, 2019 and December 31, 2018 . Range Weighted Average (based on fair value of investments) Unobservable Quantitative Input March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Discount rates 10.0% to 15.0% 10.0% to 15.0% 13.4% 13.4% Terminal capitalization rates 5.5% to 7.7% 5.4% to 7.7% 5.8% 5.7% The above inputs are subject to change based on changes in economic and market conditions and/or changes in use or timing of exit. Changes in discount rates and terminal capitalization rates result in increases or decreases in the fair values of these investments. The discount rates encompass, among other things, uncertainties in the valuation models with respect to terminal capitalization rates and the amount and timing of cash flows. Therefore, a change in the fair value of these investments resulting from a change in the terminal capitalization rate may be partially offset by a change in the discount rate. It is not possible for us to predict the effect of future economic or market conditions on our estimated fair values. The table below summarizes the changes in the fair value of real estate fund investments that are classified as Level 3, for the three months ended March 31, 2019 and 2018 . (Amounts in thousands) For the Three Months Ended March 31, 2019 2018 Beginning balance $ 318,758 $ 354,804 Purchases/additional fundings 4,000 2,950 Net unrealized gain on held investments 100 — Dispositions — (20,291 ) Net realized loss on exited investments — (911 ) Ending balance $ 322,858 $ 336,552 15 . Fair Value Measurements - continued Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued Deferred Compensation Plan Assets Deferred compensation plan assets that are classified as Level 3 consist of investments in limited partnerships and investment funds, which are managed by third parties. We receive quarterly financial reports from a third-party administrator, which are compiled from the quarterly reports provided to them from each limited partnership and investment fund. The quarterly reports provide net asset values on a fair value basis which are audited by independent public accounting firms on an annual basis. The period of time over which these underlying assets are expected to be liquidated is unknown. The third party administrator does not adjust these values in determining our share of the net assets and we do not adjust these values when reported in our consolidated financial statements. The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3, for the three months ended March 31, 2019 and 2018 . (Amounts in thousands) For the Three Months Ended March 31, 2019 2018 Beginning balance $ 37,808 $ 40,128 Sales (2,114 ) (1,635 ) Purchases 908 14 Realized and unrealized gains 523 678 Other, net 437 300 Ending balance $ 37,562 $ 39,485 Fair Value Measurements on a Nonrecurring Basis Assets measured at fair value on a nonrecurring basis on our consolidated balance sheets consist primarily of real estate assets required to be measured for impairment at December 31, 2018 . The fair values of real estate assets required to be measured for impairment were determined using comparable sales activity. There were no assets measured at fair value on a nonrecurring basis on our consolidated balance sheet as of March 31, 2019. (Amounts in thousands) As of December 31, 2018 Total Level 1 Level 2 Level 3 Real estate asset $ 14,971 $ — $ — $ 14,971 15 . Fair Value Measurements - continued 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 (primarily money market funds, which invest in obligations of the United States government), and our secured and unsecured debt. Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required under the instrument and discounting them back to their present value at the appropriate current risk adjusted interest rate, which is provided by a third-party specialist. For floating rate debt, we use forward rates derived from observable market yield curves to project the expected cash flows we would be required to make under the instrument. The fair values of cash equivalents and borrowings under our unsecured revolving credit facilities and unsecured term loan are classified as Level 1. The fair values of our secured and unsecured debt are classified as Level 2. The table below summarizes the carrying amounts and fair value of these financial instruments as of March 31, 2019 and December 31, 2018 . (Amounts in thousands) As of March 31, 2019 As of December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Cash equivalents $ 207,481 $ 207,000 $ 261,981 $ 262,000 Debt: Mortgages payable $ 6,556,034 $ 6,565,000 $ 8,215,847 $ 8,179,000 Senior unsecured notes 850,000 868,000 850,000 847,000 Unsecured term loan 750,000 750,000 750,000 750,000 Unsecured revolving credit facilities 530,000 530,000 80,000 80,000 Total $ 8,686,034 (1) $ 8,713,000 $ 9,895,847 (1) $ 9,856,000 ____________________ (1) Excludes $46,508 and $59,226 of deferred financing costs, net and other as of March 31, 2019 and December 31, 2018 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation Vornado’s 2010 Omnibus Share Plan (the “Plan”) provides the Compensation Committee of Vornado's Board of Trustees (the “Committee”) the ability to grant incentive and non-qualified Vornado stock options, restricted stock, restricted Operating Partnership units ("OP units"), out-performance plan awards ("OPPs"), appreciation-only long-term incentive plan units (“AO LTIP Units”) and Performance Conditioned Appreciation-Only Long-Term Incentive Plan Units ("Performance Conditioned AO LTIP Units") to certain of our employees and officers. We account for all equity-based compensation in accordance with ASC Topic 718, Compensation - Stock Compensation . Stock-based compensation expense, a component of "general and administrative" expenses on our consolidated statements of income, was $31,654,000 and $13,669,000 for the three months ended March 31, 2019 and 2018, respectively. General and administrative expense for the three months ended March 31, 2019 includes $16,211,000 of non-cash expense for the accelerated vesting of previously issued OP Units and Vornado restricted stock due to the removal of the time-based vesting requirement to participants who have reached 65 years of age. The right to sell such awards remains subject to original terms of grant. The increase in expense in the first quarter of 2019 will be completely offset by lower non-cash stock-based compensation expense of $2,578,000 in each of the second, third and fourth quarters of 2019 and $8,477,000 thereafter. Performance Conditioned AO LTIP Units On January 14, 2019, the Committee approved the issuance of Performance Conditioned AO LTIP Units pursuant to the Plan to our named executive officers in our 2019 proxy statement ("NEOs"). Performance Conditioned AO LTIP Units are AO LTIP Units that require the achievement of certain performance conditions by a specified date or they are forfeited. The performance based condition is met if Vornado common shares trade at or above 110% of the $64.48 grant price per share for any 20 consecutive days on or before the fourth anniversary following the date of grant. If the performance conditions are not met, the awards are forfeited. If the performance conditions are met, once vested, the awards may be converted into Class A Operating Partnership units in the same manner as AO LTIP Units until ten years from the date of grant. The fair value of the Performance Conditioned AO LTIP Units on the date of grant was $8,983,000 , of which $7,481,000 was immediately expensed due to the acceleration of vesting for employees who are retirement eligible. The remaining $1,502,000 |
Interest and Other Investment I
Interest and Other Investment Income (Loss), Net | 3 Months Ended |
Mar. 31, 2019 | |
Interest and Other Income [Abstract] | |
Interest and Other Investment Income (Loss), Net | Interest and Other Investment Income (Loss), Net The following table sets forth the details of interest and other investment income (loss), net: (Amounts in thousands) For the Three Months Ended March 31, 2019 2018 Increase (decrease) in fair value of marketable securities: Lexington (see page 24 for details) $ 16,068 $ (32,875 ) PREIT (see page 24 for details) (15,649 ) — Other 42 (111 ) 461 (32,986 ) Interest on cash and cash equivalents and restricted cash 2,067 3,557 Interest on loans receivable 1,606 743 Dividends on marketable securities — 3,353 Other, net 911 949 $ 5,045 $ (24,384 ) |
Interest and Debt Expense
Interest and Debt Expense | 3 Months Ended |
Mar. 31, 2019 | |
Interest and Debt Expense [Abstract] | |
Interest And Debt Expense | Interest and Debt Expense The following table sets forth the details of interest and debt expense: (Amounts in thousands) For the Three Months Ended March 31, 2019 2018 Interest expense (1) $ 117,647 $ 94,788 Capitalized interest and debt expense (23,325 ) (14,726 ) Amortization of deferred financing costs 8,141 8,104 $ 102,463 $ 88,166 ____________________ (1) Includes $22,540 debt prepayment costs in connection with the redemption of $400,000 5.00% |
Income (Loss) Per Share_Income
Income (Loss) Per Share/Income (Loss) Per Class A Unit | 3 Months Ended |
Mar. 31, 2019 | |
Vornado Realty L.P. | |
Earnings per share | |
Income (Loss) Per Share/Income (Loss) Per Class A Unit | Income (Loss) Per Share/Income (Loss) Per Class A Unit Vornado Realty Trust The following table provides a reconciliation of both net income attributable to Vornado and the number of common shares used in the computation of (i) basic income (loss) per common share - which includes the weighted average number of common shares outstanding without regard to dilutive potential common shares, and (ii) diluted income (loss) per common share - which includes the weighted average common shares and dilutive share equivalents. Dilutive share equivalents may include our Series A convertible preferred shares, employee stock options, restricted stock awards, OP Performance Units, AO LTIP Units, Performance Conditioned AO LTIP Units and OPPs. (Amounts in thousands, except per share amounts) For the Three Months Ended March 31, 2019 2018 Numerator: Income from continuing operations, net of income attributable to noncontrolling interests $ 194,150 $ 10,021 Loss from discontinued operations, net of income attributable to noncontrolling interests (128 ) (341 ) Net income attributable to Vornado 194,022 9,680 Preferred share dividends (12,534 ) (13,035 ) Preferred share issuance costs — (14,486 ) Net income (loss) attributable to common shareholders 181,488 (17,841 ) Earnings allocated to unvested participating securities (19 ) (11 ) Numerator for basic income (loss) per share 181,469 (17,852 ) Impact of assumed conversions: Convertible preferred share dividends 15 — Numerator for diluted income (loss) per share $ 181,484 $ (17,852 ) Denominator: Denominator for basic income (loss) per share – weighted average shares 190,689 190,081 Effect of dilutive securities (1) : Employee stock options and restricted share awards 271 — Convertible preferred shares 36 — Denominator for diluted income (loss) per share – weighted average shares and assumed conversions 190,996 190,081 INCOME (LOSS) PER COMMON SHARE – BASIC: Income (loss) from continuing operations, net $ 0.95 $ (0.09 ) Net income (loss) per common share $ 0.95 $ (0.09 ) INCOME (LOSS) PER COMMON SHARE – DILUTED: Income (loss) from continuing operations, net $ 0.95 $ (0.09 ) Net income (loss) per common share $ 0.95 $ (0.09 ) ____________________ (1) The effect of dilutive securities for the three months ended March 31, 2019 and 2018 excludes an aggregate of 12,525 and 13,334 weighted average common share equivalents, respectively, as their effect was anti-dilutive. 19 . Income (Loss) Per Share/Income (Loss) Per Class A Unit - continued Vornado Realty L.P. The following table provides a reconciliation of both net income attributable to Vornado Realty L.P. and the number of Class A units used in the computation of (i) basic income (loss) per Class A unit - which includes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units, and (ii) diluted income (loss) per Class A unit - which includes the weighted average Class A units and dilutive unit equivalents. Dilutive unit equivalents may include our Series A convertible preferred units, Vornado stock options, Vornado restricted stock awards, OP Units, AO LTIP Units, Performance Conditioned AO LTIP Units and OPPs. (Amounts in thousands, except per unit amounts) For the Three Months Ended March 31, 2019 2018 Numerator: Income from continuing operations, net of income attributable to noncontrolling interests in consolidated subsidiaries $ 206,361 $ 8,919 Loss from discontinued operations (137 ) (363 ) Net income attributable to Vornado Realty L.P. 206,224 8,556 Preferred unit distributions (12,575 ) (13,084 ) Preferred unit issuance costs — (14,486 ) Net income (loss) attributable to Class A unitholders 193,649 (19,014 ) Earnings allocated to unvested participating securities (1,147 ) (771 ) Numerator for basic income (loss) per Class A unit 192,502 (19,785 ) Impact of assumed conversions: Convertible preferred unit distributions 15 — Numerator for diluted income (loss) per Class A unit $ 192,517 $ (19,785 ) Denominator: Denominator for basic income (loss) per Class A unit – weighted average units 202,772 201,929 Effect of dilutive securities (1) : Vornado stock options and restricted unit awards 536 — Convertible preferred units 36 — Denominator for diluted income (loss) per Class A unit – weighted average units and assumed conversions 203,344 201,929 INCOME (LOSS) PER CLASS A UNIT – BASIC: Income (loss) from continuing operations, net $ 0.95 $ (0.10 ) Net income (loss) per Class A unit $ 0.95 $ (0.10 ) INCOME (LOSS) PER CLASS A UNIT – DILUTED: Income (loss) from continuing operations, net $ 0.95 $ (0.10 ) Net income (loss) per Class A unit $ 0.95 $ (0.10 ) ____________________ (1) The effect of dilutive securities for the three months ended March 31, 2019 and 2018 excludes an aggregate of 177 and 1,446 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases As lessor We lease space to tenants under operating leases. Most of the leases provide for the payment of fixed base rent payable monthly in advance. Office building leases generally require tenants to reimburse us for operating costs and real estate taxes above their base year costs. Certain leases provide for pass-through to tenants for their share of real estate taxes, insurance and common area maintenance. Certain leases also require additional variable rent payments based on a percentage of the tenants’ sales. None of our tenants accounted for more than 10% of total revenues for the three months ended March 31, 2019 and 2018 . We have elected to account for lease revenues (including base and variable rent) and the reimbursement of common area maintenance expenses as a single lease component recorded as "rental revenues" on our consolidated statements of income. As of March 31, 2019 , under ASC 842, future undiscounted cash flows under non-cancelable operating leases were as follows: (Amounts in thousands) As of March 31, 2019 For the remainder of 2019 $ 1,977,372 For the year ended December 31, 2020 1,525,340 2021 1,492,760 2022 1,433,740 2023 1,298,470 2024 1,080,729 Thereafter 4,929,317 As of December 31, 2018, under ASC 840, future undiscounted cash flows under non-cancelable operating leases were as follows: (Amounts in thousands) As of December 31, 2018 For the year ended December 31, 2019 $ 1,547,162 2020 1,510,097 2021 1,465,024 2022 1,407,615 2023 1,269,141 Thereafter 5,832,467 The components of lease revenues for the three months ended March 31, 2019 were as follows: (Amounts in thousands) For the Fixed lease revenues $ 414,877 Variable lease revenues 72,429 Lease revenues $ 487,306 20 . Leases - continued As lessee We have a number of ground leases which are classified as operating leases. On January 1, 2019, we recorded $526,866,000 of ROU assets and lease liabilities. Our ROU assets were reduced by $37,269,000 of accrued rent expense reclassified from “other liabilities” and $4,267,000 of acquired above-market lease liabilities, net, reclassified from “deferred revenue” and increased by $23,665,000 of acquired below-market lease assets, net, reclassified from “identified intangible assets, net of accumulated amortization” and $1,584,000 of prepaid lease payments reclassified from "other assets." As of March 31, 2019 , our ROU assets and lease liabilities were $457,662,000 and $484,173,000 , respectively. The discount rate applied to measure each ROU asset and lease liability is based on our incremental borrowing rate ("IBR"). We consider the general economic environment and our credit rating and factor in various financing and asset specific adjustments to ensure the IBR is appropriate to the intended use of the underlying lease. As we did not elect to apply hindsight, lease term assumptions determined under ASC 840 were carried forward and applied in calculating the lease liabilities recorded under ASC 842. Certain of our ground leases offer renewal options which we assess against relevant economic factors to determine whether we are reasonably certain of exercising or not exercising the option. Lease payments associated with renewal periods that we are reasonably certain will be exercised are included in the measurement of the corresponding lease liability and ROU asset. The following table sets forth information related to the measurement of our lease liabilities as of March 31, 2019 : (Amounts in thousands) As of March 31, 2019 Weighted average remaining lease term (in years) 41.55 Weighted average discount rate 4.89 % Cash paid for operating leases $ 6,111 We recognize rent expense as a component of "operating" expenses on our consolidated statements of income. Rent expense is comprised of fixed and variable lease payments. Variable lease payments include percentage rent and rent resets based on an index or rate. The following table sets forth the details of rent expense for the three months ended March 31, 2019 : (Amounts in thousands) For the Fixed rent expense $ 10,626 Variable rent expense 620 Rent expense $ 11,246 As of March 31, 2019 , future lease payments under operating ground leases were as follows: (Amounts in thousands) As of March 31, 2019 For the remainder of 2019 $ 20,361 For the year ended December 31, 2020 28,352 2021 28,745 2022 29,646 2023 30,061 2024 30,495 Thereafter 1,037,252 Total undiscounted cash flows 1,204,912 Present value discount (720,739 ) Lease liabilities $ 484,173 20 . Leases - continued As lessee - continued The future lease payments detailed on the previous page exclude the ground and building lease at the Farley Office and Retail Building (the "Project"). We have a 95% ownership interest in a joint venture with the Related Companies ("Related") which was designated by Empire State Development ("ESD"), an entity of New York State, to develop the Project. The Project will include a new Moynihan Train Hall and approximately 850,000 rentable square feet of commercial space, comprised of approximately 730,000 square feet of office space and approximately 120,000 square feet of retail space. The joint venture has a 99 -year triple-net lease with ESD for the commercial space at the Project. The lease has not yet commenced since construction of the Project is on-going. The joint venture has entered into a development agreement with ESD to build the adjacent Moynihan Train Hall, with Vornado and Related each guaranteeing the joint venture's obligations. The joint venture has entered into a design-build contract with Skanska Moynihan Train Hall Builders pursuant to which they will build the Moynihan Train Hall, thereby fulfilling all of the joint venture's obligations to ESD. The obligations of Skanska Moynihan Train Hall Builders have been bonded by Skanska USA and bear a full guaranty from Skanska AB. As a result of our involvement in the construction of the asset, we have been deemed the accounting owner of the property in accordance with ASC 842-40-55. Future undiscounted cash flows for the lease, including fixed payments in lieu of real estate taxes, as of March 31, 2019 were as follows: (Amounts in thousands) As of March 31, 2019 For the remainder of 2019 $ 6,822 For the year ended December 31, 2020 10,402 2021 7,229 2022 7,444 2023 7,809 2024 8,330 Thereafter 519,048 As of December 31, 2018, under ASC 840, future lease payments under operating ground leases were as follows: (Amounts in thousands) As of December 31, 2018 For the year ended December 31, 2019 $ 46,147 2020 45,258 2021 42,600 2022 43,840 2023 44,747 Thereafter 1,612,627 |
Leases | Leases As lessor We lease space to tenants under operating leases. Most of the leases provide for the payment of fixed base rent payable monthly in advance. Office building leases generally require tenants to reimburse us for operating costs and real estate taxes above their base year costs. Certain leases provide for pass-through to tenants for their share of real estate taxes, insurance and common area maintenance. Certain leases also require additional variable rent payments based on a percentage of the tenants’ sales. None of our tenants accounted for more than 10% of total revenues for the three months ended March 31, 2019 and 2018 . We have elected to account for lease revenues (including base and variable rent) and the reimbursement of common area maintenance expenses as a single lease component recorded as "rental revenues" on our consolidated statements of income. As of March 31, 2019 , under ASC 842, future undiscounted cash flows under non-cancelable operating leases were as follows: (Amounts in thousands) As of March 31, 2019 For the remainder of 2019 $ 1,977,372 For the year ended December 31, 2020 1,525,340 2021 1,492,760 2022 1,433,740 2023 1,298,470 2024 1,080,729 Thereafter 4,929,317 As of December 31, 2018, under ASC 840, future undiscounted cash flows under non-cancelable operating leases were as follows: (Amounts in thousands) As of December 31, 2018 For the year ended December 31, 2019 $ 1,547,162 2020 1,510,097 2021 1,465,024 2022 1,407,615 2023 1,269,141 Thereafter 5,832,467 The components of lease revenues for the three months ended March 31, 2019 were as follows: (Amounts in thousands) For the Fixed lease revenues $ 414,877 Variable lease revenues 72,429 Lease revenues $ 487,306 20 . Leases - continued As lessee We have a number of ground leases which are classified as operating leases. On January 1, 2019, we recorded $526,866,000 of ROU assets and lease liabilities. Our ROU assets were reduced by $37,269,000 of accrued rent expense reclassified from “other liabilities” and $4,267,000 of acquired above-market lease liabilities, net, reclassified from “deferred revenue” and increased by $23,665,000 of acquired below-market lease assets, net, reclassified from “identified intangible assets, net of accumulated amortization” and $1,584,000 of prepaid lease payments reclassified from "other assets." As of March 31, 2019 , our ROU assets and lease liabilities were $457,662,000 and $484,173,000 , respectively. The discount rate applied to measure each ROU asset and lease liability is based on our incremental borrowing rate ("IBR"). We consider the general economic environment and our credit rating and factor in various financing and asset specific adjustments to ensure the IBR is appropriate to the intended use of the underlying lease. As we did not elect to apply hindsight, lease term assumptions determined under ASC 840 were carried forward and applied in calculating the lease liabilities recorded under ASC 842. Certain of our ground leases offer renewal options which we assess against relevant economic factors to determine whether we are reasonably certain of exercising or not exercising the option. Lease payments associated with renewal periods that we are reasonably certain will be exercised are included in the measurement of the corresponding lease liability and ROU asset. The following table sets forth information related to the measurement of our lease liabilities as of March 31, 2019 : (Amounts in thousands) As of March 31, 2019 Weighted average remaining lease term (in years) 41.55 Weighted average discount rate 4.89 % Cash paid for operating leases $ 6,111 We recognize rent expense as a component of "operating" expenses on our consolidated statements of income. Rent expense is comprised of fixed and variable lease payments. Variable lease payments include percentage rent and rent resets based on an index or rate. The following table sets forth the details of rent expense for the three months ended March 31, 2019 : (Amounts in thousands) For the Fixed rent expense $ 10,626 Variable rent expense 620 Rent expense $ 11,246 As of March 31, 2019 , future lease payments under operating ground leases were as follows: (Amounts in thousands) As of March 31, 2019 For the remainder of 2019 $ 20,361 For the year ended December 31, 2020 28,352 2021 28,745 2022 29,646 2023 30,061 2024 30,495 Thereafter 1,037,252 Total undiscounted cash flows 1,204,912 Present value discount (720,739 ) Lease liabilities $ 484,173 20 . Leases - continued As lessee - continued The future lease payments detailed on the previous page exclude the ground and building lease at the Farley Office and Retail Building (the "Project"). We have a 95% ownership interest in a joint venture with the Related Companies ("Related") which was designated by Empire State Development ("ESD"), an entity of New York State, to develop the Project. The Project will include a new Moynihan Train Hall and approximately 850,000 rentable square feet of commercial space, comprised of approximately 730,000 square feet of office space and approximately 120,000 square feet of retail space. The joint venture has a 99 -year triple-net lease with ESD for the commercial space at the Project. The lease has not yet commenced since construction of the Project is on-going. The joint venture has entered into a development agreement with ESD to build the adjacent Moynihan Train Hall, with Vornado and Related each guaranteeing the joint venture's obligations. The joint venture has entered into a design-build contract with Skanska Moynihan Train Hall Builders pursuant to which they will build the Moynihan Train Hall, thereby fulfilling all of the joint venture's obligations to ESD. The obligations of Skanska Moynihan Train Hall Builders have been bonded by Skanska USA and bear a full guaranty from Skanska AB. As a result of our involvement in the construction of the asset, we have been deemed the accounting owner of the property in accordance with ASC 842-40-55. Future undiscounted cash flows for the lease, including fixed payments in lieu of real estate taxes, as of March 31, 2019 were as follows: (Amounts in thousands) As of March 31, 2019 For the remainder of 2019 $ 6,822 For the year ended December 31, 2020 10,402 2021 7,229 2022 7,444 2023 7,809 2024 8,330 Thereafter 519,048 As of December 31, 2018, under ASC 840, future lease payments under operating ground leases were as follows: (Amounts in thousands) As of December 31, 2018 For the year ended December 31, 2019 $ 46,147 2020 45,258 2021 42,600 2022 43,840 2023 44,747 Thereafter 1,612,627 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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 with limits of $2.0 billion per occurrence, with sub-limits for certain perils such as flood and earthquake. Our California properties have earthquake insurance with coverage of $260,000,000 per occurrence and in the aggregate, subject to a deductible in the amount of 5% of the value of the affected property. We maintain coverage for terrorism acts with limits of $4.0 billion per occurrence and in the aggregate, and $2.0 billion per occurrence and in the aggregate for terrorism involving nuclear, biological, chemical and radiological (“NBCR”) terrorism events, as defined by the Terrorism Risk Insurance Program Reauthorization Act of 2015, which expires in December 2020. Penn Plaza Insurance Company, LLC (“PPIC”), our wholly owned consolidated subsidiary, acts as a re-insurer with respect to a portion of all risk property and rental value insurance and a portion of our earthquake insurance coverage, and as a direct insurer for coverage for acts of terrorism including NBCR acts. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third-party insurance companies and the Federal government with no exposure to PPIC. For NBCR acts, PPIC is responsible for a deductible of $1,453,000 and 19% of the balance of a covered loss and the Federal government is responsible for the remaining portion of a covered loss. We are ultimately responsible for any loss incurred by PPIC. We continue to monitor the state of the insurance market and the scope and cost 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 debt instruments, consisting of mortgage loans secured by our properties, senior unsecured notes and revolving credit agreements, 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 a reasonable cost in the future. Further, if lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance or refinance our properties and expand our portfolio. 21 . Commitments and Contingencies - continued Other Commitments and Contingencies We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not currently expected to have a material adverse effect on our financial position, results of operations or cash flows. Each of our properties has been subjected to varying degrees of environmental assessment at various times. The environmental assessments did not reveal any material environmental contamination. However, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites or changes in cleanup requirements would not result in significant cost to us. Our mortgage loans are non-recourse to us, except for the mortgage loan secured by 7 West 34th Street and 435 Seventh Avenue, which we guaranteed and therefore is part of our tax basis. In certain cases we have provided guarantees or master leased tenant space. These guarantees and master leases terminate either upon the satisfaction of specified circumstances or repayment of the underlying loans. As of March 31, 2019 , the aggregate dollar amount of these guarantees and master leases is approximately $582,000,000 . As of March 31, 2019 , $15,365,000 of letters of credit was outstanding under one of our unsecured revolving credit facilities. Our unsecured revolving credit facilities contain financial covenants that require us to maintain minimum interest rate coverage and maximum debt to market capitalization ratios, and provide for higher interest rates in the event of a decline in our ratings below Baa3/BBB. Our unsecured revolving credit facilities also contain customary conditions precedent to borrowing, including representations and warranties, and also contain customary events of default that could give rise to accelerated repayment, including such items as failure to pay interest or principal. A joint venture in which we own a 95.0% ownership interest was designated by Empire State Development ("ESD"), an entity of New York State, to develop the Farley Office and Retail Building. The joint venture entered into a development agreement with ESD and a design-build contract with Skanska Moynihan Train Hall Builders. Under the development agreement with ESD, the joint venture is obligated to build the Moynihan Train Hall, with Vornado and Related each guaranteeing the joint venture’s obligations. Under the design-build agreement, Skanska Moynihan Train Hall Builders is obligated to fulfill all of the joint venture’s obligations. The obligations of Skanska Moynihan Train Hall Builders have been bonded by Skanska USA and bear a full guaranty from Skanska AB. As of March 31, 2019 , we expect to fund additional capital to certain of our partially owned entities aggregating approximately $16,000,000 . As of March 31, 2019 , we have construction commitments aggregating approximately $774,000,000 . |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Net Operating Income (“NOI”) represents total revenues less operating expenses. We consider NOI to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI should not be considered a substitute for net income. NOI may not be comparable to similarly titled measures employed by other companies. Below is a reconciliation of net income, the most directly comparable GAAP financial measure, to NOI at share and NOI at share - cash basis for the three months ended March 31, 2019 and 2018 . (Amounts in thousands) For the Three Months Ended March 31, 2019 2018 Net income $ 213,044 $ 282 Deduct: (Income) loss from partially owned entities (7,320 ) 9,904 Interest and other investment (income) loss, net (5,045 ) 24,384 Net gains on disposition of wholly owned and partially owned assets (220,294 ) — NOI attributable to noncontrolling interests in consolidated subsidiaries (17,403 ) (17,312 ) Add: Loss from real estate fund investments 167 8,807 Depreciation and amortization expense 116,709 108,686 General and administrative expense 58,020 42,533 Transaction related costs and other 149 13,156 NOI from partially owned entities 67,402 67,513 Interest and debt expense 102,463 88,166 Loss from discontinued operations 137 363 Income tax expense 29,743 2,554 NOI at share 337,772 349,036 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other (5,181 ) (17,948 ) NOI at share - cash basis $ 332,591 $ 331,088 22 . Segment Information - continued Below is a summary of NOI at share and NOI at share - cash basis by segment for the three months ended March 31, 2019 and 2018 . (Amounts in thousands) For the Three Months Ended March 31, 2019 Total New York Other Total revenues $ 534,668 $ 443,285 $ 91,383 Operating expenses 246,895 198,095 48,800 NOI - consolidated 287,773 245,190 42,583 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (17,403 ) (11,407 ) (5,996 ) Add: NOI from partially owned entities 67,402 49,575 17,827 NOI at share 337,772 283,358 54,414 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other (5,181 ) (6,618 ) 1,437 NOI at share - cash basis $ 332,591 $ 276,740 $ 55,851 (Amounts in thousands) For the Three Months Ended March 31, 2018 Total New York Other Total revenues $ 536,437 $ 448,484 $ 87,953 Operating expenses 237,602 197,916 39,686 NOI - consolidated 298,835 250,568 48,267 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (17,312 ) (11,745 ) (5,567 ) Add: NOI from partially owned entities 67,513 49,773 17,740 NOI at share 349,036 288,596 60,440 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other (17,948 ) (17,323 ) (625 ) NOI at share - cash basis $ 331,088 $ 271,273 $ 59,815 |
Recently Issued Accounting Li_2
Recently Issued Accounting Literature (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements are unaudited and include the accounts of Vornado and the Operating Partnership and their consolidated subsidiaries. All inter-company amounts have been eliminated and 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 (“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, 2018 , as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the 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 months ended March 31, 2019 are not necessarily indicative of the operating results for the full year. Certain prior year balances have been reclassified in order to conform to the current period presentation. For the three months ended March 31, 2018, expense of $1,100,000 related to New York City Unincorporated Business Tax was reclassified from "general and administrative" expenses to "income tax expense" on our consolidated statements of income. In addition, for the three months ended March 31, 2018, "property rentals" and "tenant expense reimbursements" of $440,110,000 and $60,310,000 , respectively, were grouped into "rental revenues" on our consolidated statements of income in accordance with Accounting Standards Codification ("ASC") Topic 205, |
Recently Issued Accounting Literature | In February 2016, the Financial Accounting Standards Board ("FASB") issued an update (“ASU 2016-02”) establishing ASC Topic 842, Leases ("ASC 842"), 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 two-method 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 ("ROU") and a lease liability for all leases with a term of greater than 12 months. Lease liabilities equal the present value of future lease payments. Right-of-use assets equal the lease liabilities less adjustments for accrued rent expense, initial direct costs and prepaid lease payments. Leases with a term of 12 months or less will be accounted for similar to the previously existing lease guidance under ASC Topic 840, Leases ("ASC 840"). Lease expense is recognized 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 ASC 840. We adopted this standard effective January 1, 2019. We have completed our evaluation of the overall impact of the adoption of ASU 2016-02 on our consolidated financial statements and accounting policies. In transitioning to ASC 842, we elected to use the practical expedient package available to us and did not elect to use hindsight. We have 12 ground leases, which are classified as operating leases, for which we are required to record a right-of-use asset and a lease liability equal to the present value of the future lease payments, and will continue to recognize expense on a straight-line basis for these leases. On January 1, 2019, we recorded an aggregate of $526,866,000 of right-of-use assets and a corresponding $526,866,000 of lease liabilities as a result of the adoption of this standard (see Note 20 - Leases ). 3 . Recently Issued Accounting Literature - continued Under ASU 2016-02, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, beginning January 1, 2019, we no longer capitalize internal leasing costs and instead expense these costs as incurred, as a component of "general and administrative" expense on our consolidated statements of income. For the three months ended March 31, 2018, we capitalized $ 1,348,000 of internal leasing costs. In addition, the new standard requires changes to our provision policy for lease receivables. Under ASC 842, we must assess whether it is probable that we will collect substantially all of the lease payments based on the credit risk factors of our tenants. Changes to the collectability of our operating leases are recorded as adjustments to "rental revenues" on our consolidated statements of income which resulted in a $890,000 decrease for the three months ending March 31, 2019. In February 2016, the FASB issued an update (“ASU 2016-13”) Measurement of Credit Losses on Financial Instruments establishing ASC Topic 326, Financial Instruments - Credit Losses (“ASC 326”), as amended by subsequent ASUs on the topic. ASU 2016-13 changes how entities will account for credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current “incurred loss” model with an “expected loss” model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the financial asset. ASU 2016-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2019. We are currently evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements, but do not believe the adoption of this standard will have a material impact on our consolidated financial statements. In August 2018, the FASB issued an update (“ASU 2018-13”) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement to ASC Topic 820, Fair Value Measurement (“ASC 820”). ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, and/or adding certain disclosures. ASU 2018-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2019. We elected to early adopt ASU 2018-13 effective January 1, 2019. The adoption of this update did not have a material impact on our consolidated financial statements and disclosures. In October 2018, the FASB issued an update ("ASU 2018-16") Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes to ASC Topic 815, Derivatives and Hedging |
Revenue | Our revenues primarily consist of rental revenues and fee and other income. We operate in two reportable segments: New York and Other, with a significant portion of our revenues included in the New York segment. We have the following revenue sources and revenue recognition policies: • Rental revenues include revenues from the leasing of space at our properties to tenants and revenues from the Hotel Pennsylvania, trade shows and tenant services. ◦ Revenues from the leasing of space at our properties to tenants includes (i) lease components, including fixed and variable lease payments, and nonlease components which include reimbursement of common area maintenance expenses, and (ii) reimbursement of real estate taxes and insurance expenses. As lessor, we have elected to combine the lease and nonlease components of our operating lease agreements and account for the components as a single lease component in accordance with ASC 842. Lease revenues and reimbursement of common area maintenance, real estate taxes and insurance are presented on the following page as "property rentals." Revenues derived from fixed lease payments are recognized on a straight-line basis over the non-cancelable period of the lease, together with renewal options that are reasonably certain of being exercised. We commence rental revenue recognition when the underlying asset is available for use by the lessee. Revenue derived from the reimbursement of real estate taxes, insurance expenses and common area maintenance expenses are generally recognized in the same period as the related expenses are incurred. ◦ Hotel revenue arising from the operation of Hotel Pennsylvania consists of room revenue, food and beverage revenue, and banquet revenue. Room revenue is recognized when the rooms are made available for the guest, in accordance with ASC 842. ◦ Trade shows revenue arising from the operation of trade shows is primarily booth rentals. This revenue is recognized upon the occurrence of the trade shows when the trade show booths are made available for use by the exhibitors, in accordance with ASC 842. ◦ Tenant services revenue arises from sub-metered electric, elevator, trash removal and other services provided to tenants at their request. This revenue is recognized as the services are transferred in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"). • |
Real Estate Fund Investments | We are also the general partner and investment manager of the Crowne Plaza Times Square Hotel Joint Venture (the “Crowne Plaza Joint Venture”) and own a 57.1% interest in the joint venture which owns the 24.7% Financial Services – Investment Companies |
Redeemable Noncontrolling Interests | Redeemable noncontrolling interests on Vornado’s consolidated balance sheets and redeemable partnership units on the consolidated balance sheets of the Operating Partnership are primarily comprised of Class A Operating Partnership units held by third parties and are recorded at the greater of their carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to “additional capital” in Vornado’s consolidated statements of changes in equity and to “partners’ capital” on the consolidated balance sheets of the Operating Partnership.Redeemable noncontrolling interests/redeemable partnership units exclude our Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for as liabilities in accordance with ASC Topic 480, Distinguishing Liabilities and Equity |
Fair Value Measurement | ASC 820 defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). 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. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non-financial assets and liabilities. Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Sources by Segment | Below is a summary of our revenues by segment. Additional financial information related to these reportable segments for the three months ended March 31, 2019 and 2018 is set forth in Note 22 - Segment Information . (Amounts in thousands) For the Three Months Ended March 31, 2019 Total New York Other Property rentals $ 457,741 $ 385,803 $ 71,938 Hotel Pennsylvania 12,609 12,609 — Trade shows 16,956 — 16,956 Lease revenues 487,306 398,412 88,894 Tenant services 12,571 9,225 3,346 Rental revenues 499,877 407,637 92,240 BMS cleaning fees 29,785 31,757 (1,972 ) (1) Management and leasing fees 2,237 2,251 (14 ) Other income 2,769 1,640 1,129 Fee and other income 34,791 35,648 (857 ) Total revenues $ 534,668 $ 443,285 $ 91,383 ____________________ (1) Represents the elimination of theMART and 555 California Street BMS cleaning fees which are included as income in the New York segment. (Amounts in thousands) For the Three Months Ended March 31, 2018 Total New York Other Property rentals $ 454,403 $ 389,385 $ 65,018 Hotel Pennsylvania 14,680 14,680 — Trade shows 18,873 — 18,873 Lease revenues 487,956 404,065 83,891 Tenant services 12,464 9,771 2,693 Rental revenues 500,420 413,836 86,584 BMS cleaning fees 28,355 30,153 (1,798 ) (1) Management and leasing fees 2,764 2,481 283 Other income 4,898 2,014 2,884 Fee and other income 36,017 34,648 1,369 Total revenues $ 536,437 $ 448,484 $ 87,953 ____________________ (1) Represents the elimination of theMART and 555 California Street BMS cleaning fees which are included as income in the New York segment. |
Real Estate Fund Investments (T
Real Estate Fund Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate Fund Investments [Abstract] | |
Schedule Of Income And Loss From The Fund | Below is a summary of loss from the Fund and the Crowne Plaza Joint Venture for the three months ended March 31, 2019 and 2018 . (Amounts in thousands) For the Three Months Ended March 31, 2019 2018 Net investment (loss) income $ (267 ) $ 2,734 Net unrealized gain on held investments 100 — New York City real property transfer tax (the "Transfer Tax") — (10,630 ) (1) Net realized loss on exited investments — (911 ) Loss from real estate fund investments (167 ) (8,807 ) Less (income) loss attributable to noncontrolling interests in consolidated subsidiaries (2,737 ) 5,369 Loss from real estate fund investments attributable to the Operating Partnership (2,904 ) (3,438 ) Less loss attributable to noncontrolling interests in the Operating Partnership 182 212 Loss from real estate fund investments attributable to Vornado $ (2,722 ) $ (3,226 ) ____________________ (1) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Marketable Securities [Abstract] | |
Unrealized Gain (Loss) on Investments | The table below summarizes the changes of our marketable securities portfolio for the three months ended March 31, 2019 . (Amounts in thousands) For the Three Months Ended March 31, 2019 Total Lexington Realty Trust PREIT Other Balance, December 31, 2018 $ 152,198 $ 151,630 $ — $ 568 Sale of marketable securities (167,755 ) (167,698 ) — (57 ) Transfer of PREIT investment balance at Conversion Date 54,962 — 54,962 — Increase (decrease) in fair value of marketable securities (1) 461 16,068 (15,649 ) 42 Balance, March 31, 2019 $ 39,866 $ — $ 39,313 $ 553 ____________________ (1) Included in “interest and other investment income (loss), net” on our consolidated statements of income (see Note 17 - Interest and Other Investment Income (Loss), Net |
Investments in Partially Owne_2
Investments in Partially Owned Entities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Below is a schedule summarizing our investments in partially owned entities. (Amounts in thousands) Percentage Ownership at Balance as of March 31, 2019 December 31, 2018 Investments: Partially owned office buildings/land (1) Various $ 478,240 $ 499,005 Alexander’s 32.4% 106,786 107,983 PREIT (2) N/A — 59,491 UE (3) N/A — 45,344 Other investments (4) Various 145,238 146,290 $ 730,264 $ 858,113 Investments in partially owned entities included in other liabilities (5) : 330 Madison Avenue 25.0% $ (60,054 ) $ (58,117 ) 7 West 34th Street 53.0% (51,464 ) (51,579 ) 85 Tenth Avenue 49.9% (5,857 ) — $ (117,375 ) $ (109,696 ) ____________________ (1) Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 512 West 22nd Street, 61 Ninth Avenue and others. (2) On March 12, 2019, we converted all of our PREIT operating partnership units into common shares and began accounting for our investment as a marketable security in accordance with ASC 321 (see Note 6 - Marketable Securities ). (3) Sold on March 4, 2019 (see page 25 for details). (4) Includes interests in Independence Plaza, Fashion Centre Mall/Washington Tower, Rosslyn Plaza, 50-70 West 93rd Street and others. (5) Our negative basis results from distributions in excess of our investment. Below is a schedule of net income (loss) from partially owned entities. (Amounts in thousands) Percentage For the Three Months Ended March 31, 2019 2018 Our share of net income (loss): Alexander's (see page 25 for details): Equity in net income (loss) (1) 32.4% $ 5,717 $ (3,209 ) Management, leasing and development fees 1,057 1,208 6,774 (2,001 ) Partially owned office buildings (2) Various 106 (4,283 ) Other investments (3) Various 440 (3,620 ) $ 7,320 $ (9,904 ) ____________________ (1) 2018 includes our $7,708 share of Alexander's disputed additional Transfer Tax related to the November 2012 sale of Kings Plaza Regional Shopping Center based on the precedent established by the Tax Tribunal's decision regarding One Park Avenue (see Note 5 - Real Estate Fund Investments ). (2) Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 7 West 34th Street, 330 Madison Avenue, 512 West 22nd Street, 85 Tenth Avenue and others. 2018 includes our $4,978 share of disputed additional Transfer Tax related to the March 2011 acquisition of One Park Avenue (see Note 5 - Real Estate Fund Investments ). (3) |
Properties Held for Sale (Table
Properties Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Properties Held for Sale [Abstract] | |
Summary of Preferred Equity Interests and Effective Ownership Interest | The table below summarizes our effective ownership interests in the Properties transferred to Fifth Avenue and Times Square JV and our preferred equity interests following the Transaction and the anticipated closing of the mortgage loan on 640 Fifth Avenue. (Amounts in thousands) Vornado's Effective Ownership Interest Percentage Vornado's Preferred Equity Interests Properties transferred to Fifth Avenue and Times Square JV: 640 Fifth Avenue 52.0 % $ — 655 Fifth Avenue 50.0 % 140,000 666 Fifth Avenue 52.0 % 390,000 689 Fifth Avenue 52.0 % 130,000 697-703 Fifth Avenue 44.8 % — 1535 Broadway 52.0 % 628,875 1540 Broadway 52.0 % 538,875 $ 1,827,750 |
Assets and Liabilities of Properties Held for Sale | The following table summarizes the assets and liabilities associated with the Properties classified as held for sale: (Amounts in thousands) Balance as of Assets held for sale: Real estate, net $ 2,656,509 Right-of-use asset 49,134 Restricted cash 8,828 Receivable arising from the straight-lining of rents 167,612 Deferred leasing costs, net 70,511 Identified intangible assets, net 74,464 $ 3,027,058 Liabilities related to assets held for sale: Mortgages payable, net $ 971,618 Lease liability 41,235 Deferred revenue 84,497 $ 1,097,350 |
Identified Intangible Assets _2
Identified Intangible Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Finite-Lived Intangible Assets and Liabilities | |
Schedule of Identified Intangible Assets and Intangible Liabilities | The following summarizes our identified intangible assets (primarily above-market leases) and liabilities (primarily acquired below-market leases) as of March 31, 2019 and December 31, 2018 . (Amounts in thousands) Balance as of March 31, 2019 December 31, 2018 Identified intangible assets: Gross amount $ 131,910 $ 308,895 Accumulated amortization (97,749 ) (172,114 ) Total, net $ 34,161 $ 136,781 Identified intangible liabilities (included in deferred revenue): Gross amount $ 386,512 $ 503,373 Accumulated amortization (321,152 ) (341,779 ) Total, net $ 65,360 $ 161,594 |
Below Market Leases Net Of Above Market Leases | |
Finite-Lived Intangible Assets and Liabilities | |
Schedule of future amortization expense of intangible assets | Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2020 is as follows: (Amounts in thousands) 2020 $ 16,605 2021 11,932 2022 8,800 2023 6,269 2024 2,497 |
Other Identified Intangible Assets | |
Finite-Lived Intangible Assets and Liabilities | |
Schedule of future amortization expense of intangible assets | Estimated annual amortization of all other identified intangible assets including acquired in-place leases for each of the five succeeding years commencing January 1, 2020 is as follows: (Amounts in thousands) 2020 $ 6,308 2021 4,779 2022 3,049 2023 2,962 2024 2,350 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following is a summary of our debt: (Amounts in thousands) Weighted Average Interest Rate at Balance as of March 31, 2019 December 31, 2018 Mortgages Payable: Fixed rate 3.52% $ 4,610,526 $ 5,003,465 Variable rate 4.20% 1,945,508 3,212,382 Total 3.72% 6,556,034 8,215,847 Deferred financing costs, net and other (36,845 ) (48,049 ) Total, net $ 6,519,189 $ 8,167,798 Unsecured Debt: Senior unsecured notes 4.21% $ 850,000 $ 850,000 Deferred financing costs, net and other (4,739 ) (5,998 ) Senior unsecured notes, net 845,261 844,002 Unsecured term loan 3.87% 750,000 750,000 Deferred financing costs, net and other (4,924 ) (5,179 ) Unsecured term loan, net 745,076 744,821 Unsecured revolving credit facilities 3.46% 530,000 80,000 Total, net $ 2,120,337 $ 1,668,823 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests/Redeemable Partnership Units (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Summary Of Activity Of Redeemable Noncontrolling Interests | (Amounts in thousands) Balance, December 31, 2018 $ 783,562 Net income 12,202 Other comprehensive loss (1,276 ) Distributions (8,488 ) Redemption of Class A units for Vornado common shares, at redemption value (3,181 ) Adjustments to carry redeemable Class A units at redemption value 65,818 Other, net 18,448 Balance, March 31, 2019 $ 867,085 Balance, December 31, 2017 $ 984,937 Net loss (1,124 ) Other comprehensive income 654 Distributions (7,906 ) Redemption of Class A units for Vornado common shares, at redemption value (8,392 ) Adjustments to carry redeemable Class A units at redemption value (114,856 ) Other, net 3,713 Balance, March 31, 2018 $ 857,026 |
Shareholders' Equity_Partners_2
Shareholders' Equity/Partners' Capital (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Dividends | The following table sets forth the details of our dividends/distributions per common share/Class A unit and dividends/distributions per share/unit for each class of preferred shares/units of beneficial interest for the three months ended March 31, 2019 and 2018 . Per Share/Unit Shares/Units: 2019 2018 Common shares/Class A units held by Vornado: authorized 250,000,000 shares/units $ 0.66 $ 0.63 Convertible Preferred (1) : 6.5% Series A: authorized 83,977 shares/units (2) 0.8125 0.8125 Cumulative Redeemable Preferred (1) : 5.70% Series K: authorized 12,000,000 shares/units (3) 0.3563 0.3563 5.40% Series L: authorized 12,000,000 shares/units (3) 0.3375 0.3375 5.25% Series M: authorized 12,780,000 shares/units (3) 0.3281 0.3281 ____________________ (1) Dividends on preferred shares and distributions on preferred units are cumulative and are payable quarterly in arrears. (2) Redeemable at the option of Vornado under certain circumstances, at a redemption price of 1.9531 common shares/Class A units per Series A preferred share/unit plus accrued and unpaid dividends/distributions through the date of redemption, or convertible at any time at the option of the holder for 1.9531 common shares/ Class A units per Series A preferred share/unit. (3) Redeemable at Vornado's option at a redemption price of $25.00 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables set forth the changes in accumulated other comprehensive (loss) income by component for the three months ended March 31, 2019 and 2018. (Amounts in thousands) Total Marketable securities Pro rata share of nonconsolidated subsidiaries' OCI Interest rate swaps Other For the Three Months Ended March 31, 2019 Balance, December 31, 2018 $ 7,664 $ — $ 3,253 $ 11,759 $ (7,348 ) Net current period other comprehensive (loss) income (16,738 ) — (985 ) (17,029 ) 1,276 Amount reclassified from AOCI (1) (2,311 ) — (2,311 ) — — Balance, March 31, 2019 $ (11,385 ) $ — $ (43 ) $ (5,270 ) $ (6,072 ) For the Three Months Ended March 31, 2018 Balance, December 31, 2017 $ 128,682 $ 109,554 $ 3,769 $ 23,542 $ (8,183 ) Cumulative effect of accounting change (108,374 ) (109,554 ) (1,671 ) 2,851 — Net current period other comprehensive income (loss) 9,950 — 346 10,258 (654 ) Balance, March 31, 2018 $ 30,258 $ — $ 2,444 $ 36,651 $ (8,837 ) ____________________ (1) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Fair value, measurement inputs, disclosure | The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy as of March 31, 2019 and December 31, 2018 , respectively. (Amounts in thousands) As of March 31, 2019 Total Level 1 Level 2 Level 3 Marketable securities $ 39,866 $ 39,866 $ — $ — Real estate fund investments 322,858 — — 322,858 Deferred compensation plan assets ($8,747 included in restricted cash and $93,176 in other assets) 101,923 64,361 — 37,562 Interest rate swaps (included in other assets) 19,613 — 19,613 — Total assets $ 484,260 $ 104,227 $ 19,613 $ 360,420 Mandatorily redeemable instruments (included in other liabilities) $ 50,561 $ 50,561 $ — $ — Interest rate swaps (included in other liabilities) 24,851 — 24,851 — Total liabilities $ 75,412 $ 50,561 $ 24,851 $ — (Amounts in thousands) As of December 31, 2018 Total Level 1 Level 2 Level 3 Marketable securities $ 152,198 $ 152,198 $ — $ — Real estate fund investments 318,758 — — 318,758 Deferred compensation plan assets ($8,402 included in restricted cash and $88,122 in other assets) 96,524 58,716 — 37,808 Interest rate swaps (included in other assets) 27,033 — 27,033 — Total assets $ 594,513 $ 210,914 $ 27,033 $ 356,566 Mandatorily redeemable instruments (included in other liabilities) $ 50,561 $ 50,561 $ — $ — Interest rate swaps (included in other liabilities) 15,236 — 15,236 — Total liabilities $ 65,797 $ 50,561 $ 15,236 $ — |
Fair value measurements, nonrecurring | (Amounts in thousands) As of December 31, 2018 Total Level 1 Level 2 Level 3 Real estate asset $ 14,971 $ — $ — $ 14,971 |
Schedule of carrying amounts and fair values of financial instruments | The table below summarizes the carrying amounts and fair value of these financial instruments as of March 31, 2019 and December 31, 2018 . (Amounts in thousands) As of March 31, 2019 As of December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Cash equivalents $ 207,481 $ 207,000 $ 261,981 $ 262,000 Debt: Mortgages payable $ 6,556,034 $ 6,565,000 $ 8,215,847 $ 8,179,000 Senior unsecured notes 850,000 868,000 850,000 847,000 Unsecured term loan 750,000 750,000 750,000 750,000 Unsecured revolving credit facilities 530,000 530,000 80,000 80,000 Total $ 8,686,034 (1) $ 8,713,000 $ 9,895,847 (1) $ 9,856,000 ____________________ (1) Excludes $46,508 and $59,226 of deferred financing costs, net and other as of March 31, 2019 and December 31, 2018 |
Real estate fund investments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Fair value inputs quantitative information | Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate fund investments as of March 31, 2019 and December 31, 2018 . Range Weighted Average (based on fair value of investments) Unobservable Quantitative Input March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Discount rates 10.0% to 15.0% 10.0% to 15.0% 13.4% 13.4% Terminal capitalization rates 5.5% to 7.7% 5.4% to 7.7% 5.8% 5.7% |
Summary of changes in level 3 plan assets | The table below summarizes the changes in the fair value of real estate fund investments that are classified as Level 3, for the three months ended March 31, 2019 and 2018 . (Amounts in thousands) For the Three Months Ended March 31, 2019 2018 Beginning balance $ 318,758 $ 354,804 Purchases/additional fundings 4,000 2,950 Net unrealized gain on held investments 100 — Dispositions — (20,291 ) Net realized loss on exited investments — (911 ) Ending balance $ 322,858 $ 336,552 |
Deferred Compensation Plan Assets | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Changes in the fair value of deferred compensation plan assets | The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3, for the three months ended March 31, 2019 and 2018 . (Amounts in thousands) For the Three Months Ended March 31, 2019 2018 Beginning balance $ 37,808 $ 40,128 Sales (2,114 ) (1,635 ) Purchases 908 14 Realized and unrealized gains 523 678 Other, net 437 300 Ending balance $ 37,562 $ 39,485 |
Interest and Other Investment_2
Interest and Other Investment Income (Loss), Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Interest and Other Income [Abstract] | |
Schedule Of Interest And Other Investment Income, Net | The following table sets forth the details of interest and other investment income (loss), net: (Amounts in thousands) For the Three Months Ended March 31, 2019 2018 Increase (decrease) in fair value of marketable securities: Lexington (see page 24 for details) $ 16,068 $ (32,875 ) PREIT (see page 24 for details) (15,649 ) — Other 42 (111 ) 461 (32,986 ) Interest on cash and cash equivalents and restricted cash 2,067 3,557 Interest on loans receivable 1,606 743 Dividends on marketable securities — 3,353 Other, net 911 949 $ 5,045 $ (24,384 ) |
Interest and Debt Expense (Tabl
Interest and Debt Expense (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Interest and Debt Expense [Abstract] | |
Interest And Debt Expense | The following table sets forth the details of interest and debt expense: (Amounts in thousands) For the Three Months Ended March 31, 2019 2018 Interest expense (1) $ 117,647 $ 94,788 Capitalized interest and debt expense (23,325 ) (14,726 ) Amortization of deferred financing costs 8,141 8,104 $ 102,463 $ 88,166 ____________________ (1) Includes $22,540 debt prepayment costs in connection with the redemption of $400,000 5.00% |
Income (Loss) Per Share_Incom_2
Income (Loss) Per Share/Income (Loss) Per Class A Unit (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings per share | |
Schedule Of Earnings Per Share Basic And Diluted | Vornado Realty Trust The following table provides a reconciliation of both net income attributable to Vornado and the number of common shares used in the computation of (i) basic income (loss) per common share - which includes the weighted average number of common shares outstanding without regard to dilutive potential common shares, and (ii) diluted income (loss) per common share - which includes the weighted average common shares and dilutive share equivalents. Dilutive share equivalents may include our Series A convertible preferred shares, employee stock options, restricted stock awards, OP Performance Units, AO LTIP Units, Performance Conditioned AO LTIP Units and OPPs. (Amounts in thousands, except per share amounts) For the Three Months Ended March 31, 2019 2018 Numerator: Income from continuing operations, net of income attributable to noncontrolling interests $ 194,150 $ 10,021 Loss from discontinued operations, net of income attributable to noncontrolling interests (128 ) (341 ) Net income attributable to Vornado 194,022 9,680 Preferred share dividends (12,534 ) (13,035 ) Preferred share issuance costs — (14,486 ) Net income (loss) attributable to common shareholders 181,488 (17,841 ) Earnings allocated to unvested participating securities (19 ) (11 ) Numerator for basic income (loss) per share 181,469 (17,852 ) Impact of assumed conversions: Convertible preferred share dividends 15 — Numerator for diluted income (loss) per share $ 181,484 $ (17,852 ) Denominator: Denominator for basic income (loss) per share – weighted average shares 190,689 190,081 Effect of dilutive securities (1) : Employee stock options and restricted share awards 271 — Convertible preferred shares 36 — Denominator for diluted income (loss) per share – weighted average shares and assumed conversions 190,996 190,081 INCOME (LOSS) PER COMMON SHARE – BASIC: Income (loss) from continuing operations, net $ 0.95 $ (0.09 ) Net income (loss) per common share $ 0.95 $ (0.09 ) INCOME (LOSS) PER COMMON SHARE – DILUTED: Income (loss) from continuing operations, net $ 0.95 $ (0.09 ) Net income (loss) per common share $ 0.95 $ (0.09 ) ____________________ (1) The effect of dilutive securities for the three months ended March 31, 2019 and 2018 excludes an aggregate of 12,525 and 13,334 |
Vornado Realty L.P. | |
Earnings per share | |
Schedule Of Earnings Per Share Basic And Diluted | Vornado Realty L.P. The following table provides a reconciliation of both net income attributable to Vornado Realty L.P. and the number of Class A units used in the computation of (i) basic income (loss) per Class A unit - which includes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units, and (ii) diluted income (loss) per Class A unit - which includes the weighted average Class A units and dilutive unit equivalents. Dilutive unit equivalents may include our Series A convertible preferred units, Vornado stock options, Vornado restricted stock awards, OP Units, AO LTIP Units, Performance Conditioned AO LTIP Units and OPPs. (Amounts in thousands, except per unit amounts) For the Three Months Ended March 31, 2019 2018 Numerator: Income from continuing operations, net of income attributable to noncontrolling interests in consolidated subsidiaries $ 206,361 $ 8,919 Loss from discontinued operations (137 ) (363 ) Net income attributable to Vornado Realty L.P. 206,224 8,556 Preferred unit distributions (12,575 ) (13,084 ) Preferred unit issuance costs — (14,486 ) Net income (loss) attributable to Class A unitholders 193,649 (19,014 ) Earnings allocated to unvested participating securities (1,147 ) (771 ) Numerator for basic income (loss) per Class A unit 192,502 (19,785 ) Impact of assumed conversions: Convertible preferred unit distributions 15 — Numerator for diluted income (loss) per Class A unit $ 192,517 $ (19,785 ) Denominator: Denominator for basic income (loss) per Class A unit – weighted average units 202,772 201,929 Effect of dilutive securities (1) : Vornado stock options and restricted unit awards 536 — Convertible preferred units 36 — Denominator for diluted income (loss) per Class A unit – weighted average units and assumed conversions 203,344 201,929 INCOME (LOSS) PER CLASS A UNIT – BASIC: Income (loss) from continuing operations, net $ 0.95 $ (0.10 ) Net income (loss) per Class A unit $ 0.95 $ (0.10 ) INCOME (LOSS) PER CLASS A UNIT – DILUTED: Income (loss) from continuing operations, net $ 0.95 $ (0.10 ) Net income (loss) per Class A unit $ 0.95 $ (0.10 ) ____________________ (1) The effect of dilutive securities for the three months ended March 31, 2019 and 2018 excludes an aggregate of 177 and 1,446 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Maturity | As of March 31, 2019 , under ASC 842, future undiscounted cash flows under non-cancelable operating leases were as follows: (Amounts in thousands) As of March 31, 2019 For the remainder of 2019 $ 1,977,372 For the year ended December 31, 2020 1,525,340 2021 1,492,760 2022 1,433,740 2023 1,298,470 2024 1,080,729 Thereafter 4,929,317 As of December 31, 2018, under ASC 840, future undiscounted cash flows under non-cancelable operating leases were as follows: (Amounts in thousands) As of December 31, 2018 For the year ended December 31, 2019 $ 1,547,162 2020 1,510,097 2021 1,465,024 2022 1,407,615 2023 1,269,141 Thereafter 5,832,467 |
Components of Fixed and Variable Lease Revenues | The components of lease revenues for the three months ended March 31, 2019 were as follows: (Amounts in thousands) For the Fixed lease revenues $ 414,877 Variable lease revenues 72,429 Lease revenues $ 487,306 |
Schedule of Amounts Included in Measurement of Lease Liability | The following table sets forth information related to the measurement of our lease liabilities as of March 31, 2019 : (Amounts in thousands) As of March 31, 2019 Weighted average remaining lease term (in years) 41.55 Weighted average discount rate 4.89 % Cash paid for operating leases $ 6,111 |
Schedule of Rent Expense | The following table sets forth the details of rent expense for the three months ended March 31, 2019 : (Amounts in thousands) For the Fixed rent expense $ 10,626 Variable rent expense 620 Rent expense $ 11,246 |
Lessee, Operating Lease, Liability, Maturity | As of March 31, 2019 , future lease payments under operating ground leases were as follows: (Amounts in thousands) As of March 31, 2019 For the remainder of 2019 $ 20,361 For the year ended December 31, 2020 28,352 2021 28,745 2022 29,646 2023 30,061 2024 30,495 Thereafter 1,037,252 Total undiscounted cash flows 1,204,912 Present value discount (720,739 ) Lease liabilities $ 484,173 (Amounts in thousands) As of March 31, 2019 For the remainder of 2019 $ 6,822 For the year ended December 31, 2020 10,402 2021 7,229 2022 7,444 2023 7,809 2024 8,330 Thereafter 519,048 |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2018, under ASC 840, future lease payments under operating ground leases were as follows: (Amounts in thousands) As of December 31, 2018 For the year ended December 31, 2019 $ 46,147 2020 45,258 2021 42,600 2022 43,840 2023 44,747 Thereafter 1,612,627 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Below is a reconciliation of net income, the most directly comparable GAAP financial measure, to NOI at share and NOI at share - cash basis for the three months ended March 31, 2019 and 2018 . (Amounts in thousands) For the Three Months Ended March 31, 2019 2018 Net income $ 213,044 $ 282 Deduct: (Income) loss from partially owned entities (7,320 ) 9,904 Interest and other investment (income) loss, net (5,045 ) 24,384 Net gains on disposition of wholly owned and partially owned assets (220,294 ) — NOI attributable to noncontrolling interests in consolidated subsidiaries (17,403 ) (17,312 ) Add: Loss from real estate fund investments 167 8,807 Depreciation and amortization expense 116,709 108,686 General and administrative expense 58,020 42,533 Transaction related costs and other 149 13,156 NOI from partially owned entities 67,402 67,513 Interest and debt expense 102,463 88,166 Loss from discontinued operations 137 363 Income tax expense 29,743 2,554 NOI at share 337,772 349,036 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other (5,181 ) (17,948 ) NOI at share - cash basis $ 332,591 $ 331,088 22 . Segment Information - continued Below is a summary of NOI at share and NOI at share - cash basis by segment for the three months ended March 31, 2019 and 2018 . (Amounts in thousands) For the Three Months Ended March 31, 2019 Total New York Other Total revenues $ 534,668 $ 443,285 $ 91,383 Operating expenses 246,895 198,095 48,800 NOI - consolidated 287,773 245,190 42,583 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (17,403 ) (11,407 ) (5,996 ) Add: NOI from partially owned entities 67,402 49,575 17,827 NOI at share 337,772 283,358 54,414 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other (5,181 ) (6,618 ) 1,437 NOI at share - cash basis $ 332,591 $ 276,740 $ 55,851 (Amounts in thousands) For the Three Months Ended March 31, 2018 Total New York Other Total revenues $ 536,437 $ 448,484 $ 87,953 Operating expenses 237,602 197,916 39,686 NOI - consolidated 298,835 250,568 48,267 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (17,312 ) (11,745 ) (5,567 ) Add: NOI from partially owned entities 67,513 49,773 17,740 NOI at share 349,036 288,596 60,440 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other (17,948 ) (17,323 ) (625 ) NOI at share - cash basis $ 331,088 $ 271,273 $ 59,815 |
Organization (Narrative) (Detai
Organization (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Common limited partnership interest in the Operating Partnership (percent) | 93.40% |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
General and Administrative Expense | |
Basis of Presentation [Line Items] | |
Unincorporated business tax | $ (1,100) |
Income Tax Expense | |
Basis of Presentation [Line Items] | |
Unincorporated business tax | 1,100 |
Lease revenues | |
Basis of Presentation [Line Items] | |
Property rentals | 440,110 |
Tenant expense reimbursement | $ 60,310 |
Recently Issued Accounting Li_3
Recently Issued Accounting Literature (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | $ 457,662,000 | $ 0 | ||
Lease liabilities | 484,173,000 | $ 0 | ||
Capitalized leasing costs | $ 1,348,000 | |||
Rental revenues | 487,306,000 | |||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | $ 526,866,000 | |||
Lease liabilities | $ 526,866,000 | |||
Rental revenues | $ (890,000) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Revenue from Contract with Customer [Abstract] | |
Number of reportable segments | 2 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Lease income | $ 487,306 | |
Total revenues | 534,668 | $ 536,437 |
New York | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 443,285 | 448,484 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 91,383 | 87,953 |
Rental revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 499,877 | 500,420 |
Rental revenues | New York | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 407,637 | 413,836 |
Rental revenues | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 92,240 | 86,584 |
Property rentals | ||
Disaggregation of Revenue [Line Items] | ||
Lease income | 457,741 | 454,403 |
Property rentals | New York | ||
Disaggregation of Revenue [Line Items] | ||
Lease income | 385,803 | 389,385 |
Property rentals | Other | ||
Disaggregation of Revenue [Line Items] | ||
Lease income | 71,938 | 65,018 |
Hotel Pennsylvania | ||
Disaggregation of Revenue [Line Items] | ||
Lease income | 12,609 | 14,680 |
Hotel Pennsylvania | New York | ||
Disaggregation of Revenue [Line Items] | ||
Lease income | 12,609 | 14,680 |
Hotel Pennsylvania | Other | ||
Disaggregation of Revenue [Line Items] | ||
Lease income | 0 | 0 |
Trade shows | ||
Disaggregation of Revenue [Line Items] | ||
Lease income | 16,956 | 18,873 |
Trade shows | New York | ||
Disaggregation of Revenue [Line Items] | ||
Lease income | 0 | 0 |
Trade shows | Other | ||
Disaggregation of Revenue [Line Items] | ||
Lease income | 16,956 | 18,873 |
Lease revenues | ||
Disaggregation of Revenue [Line Items] | ||
Lease income | 487,306 | 487,956 |
Lease revenues | New York | ||
Disaggregation of Revenue [Line Items] | ||
Lease income | 398,412 | 404,065 |
Lease revenues | Other | ||
Disaggregation of Revenue [Line Items] | ||
Lease income | 88,894 | 83,891 |
Tenant services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,571 | 12,464 |
Tenant services | New York | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 9,225 | 9,771 |
Tenant services | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,346 | 2,693 |
Fee and other income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 34,791 | 36,017 |
Total revenues | 34,791 | 36,017 |
Fee and other income | New York | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 35,648 | 34,648 |
Fee and other income | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (857) | 1,369 |
BMS cleaning fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 29,785 | 28,355 |
BMS cleaning fees | New York | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 31,757 | 30,153 |
BMS cleaning fees | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (1,972) | (1,798) |
Management and leasing fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,237 | 2,764 |
Management and leasing fees | New York | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,251 | 2,481 |
Management and leasing fees | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (14) | 283 |
Other income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,769 | 4,898 |
Other income | New York | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,640 | 2,014 |
Other income | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,129 | $ 2,884 |
Real Estate Fund Investments (N
Real Estate Fund Investments (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)investment | Dec. 31, 2018USD ($)investment | |
Investment Holdings | ||
Aggregate fair value of Real Estate Fund investments (in US Dollars) | $ 322,858 | $ 318,758 |
Vornado Capital Partners Real Estate Fund | ||
Investment Holdings | ||
Equity method ownership percentage | 25.00% | |
Investment fund period expiration date | 2013-07 | |
Term of the Fund, years | 8 years | |
Investment period for commitments of the Fund, years | 3 years | |
Real estate fund investments | ||
Investment Holdings | ||
Number of investments held by fund (investment) | investment | 4 | 4 |
Excess of fair value over cost | $ 6,706 | |
Unfunded commitments of fund | 44,194 | |
Vornado Realty Trust | ||
Investment Holdings | ||
Unfunded commitments of fund | $ 13,969 | |
Joint Venture | Crowne Plaza Times Square Hotel Joint Venture | ||
Investment Holdings | ||
Equity method ownership percentage | 57.10% | |
Joint Venture | Crowne Plaza Times Square Hotel Joint Venture | Crowne Plaza Time Square Hotel | ||
Investment Holdings | ||
Ownership percentage by noncontrolling owners | 24.70% | |
Level 3 | Real estate fund investments | ||
Investment Holdings | ||
Aggregate fair value of Real Estate Fund investments (in US Dollars) | $ 322,858 |
Real Estate Fund Investments (I
Real Estate Fund Investments (Income from the Fund and the Co-Investment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Details Of Income From Real Estate Funds | ||
Loss from real estate fund investments | $ (167) | $ (8,807) |
Less (income) loss attributable to noncontrolling interests in consolidated subsidiaries | (6,820) | 8,274 |
Real estate fund investments | ||
Details Of Income From Real Estate Funds | ||
Net investment (loss) income | (267) | 2,734 |
Net unrealized gain on held investments | 100 | 0 |
New York City real property transfer tax (the Transfer Tax) | 0 | (10,630) |
Net realized loss on exited investments | 0 | (911) |
Loss from real estate fund investments | (167) | (8,807) |
Less (income) loss attributable to noncontrolling interests in consolidated subsidiaries | (2,737) | 5,369 |
Loss from real estate fund investments attributable to the Operating Partnership | (2,904) | (3,438) |
Less loss attributable to noncontrolling interests in the Operating Partnership | 182 | 212 |
Less loss attributable to noncontrolling interests in the Operating Partnership | $ (2,722) | $ (3,226) |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) - USD ($) $ in Thousands | Mar. 12, 2019 | Mar. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) in fair value of marketable securities | $ 461 | $ (32,986) | ||
Lexington Realty Trust | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Shares sold (shares) | 18,468,969 | |||
Proceeds from sale of equity method investments | $ 167,698 | |||
Mark-to-market increase in fair value | 16,068 | |||
Increase (decrease) in fair value of marketable securities | 16,068 | (32,875) | ||
PREIT | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Shares issued upon conversion of operating partnership units (shares) | 6,250,000 | |||
Increase (decrease) in fair value of marketable securities | $ (15,649) | $ 0 |
Marketable Securities (Marketab
Marketable Securities (Marketable securities portfolio) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Marketable Securities [Roll Forward] | ||
Beginning balance | $ 152,198 | |
Sale of marketable securities | (167,755) | |
Transfer of PREIT investment balance at Conversion Date | 54,962 | |
Increase (decrease) in fair value of marketable securities | 461 | $ (32,986) |
Ending balance | 39,866 | |
Lexington Realty Trust | ||
Marketable Securities [Roll Forward] | ||
Beginning balance | 151,630 | |
Sale of marketable securities | (167,698) | |
Transfer of PREIT investment balance at Conversion Date | 0 | |
Increase (decrease) in fair value of marketable securities | 16,068 | |
Ending balance | 0 | |
PREIT | ||
Marketable Securities [Roll Forward] | ||
Beginning balance | 0 | |
Sale of marketable securities | 0 | |
Transfer of PREIT investment balance at Conversion Date | 54,962 | |
Increase (decrease) in fair value of marketable securities | (15,649) | |
Ending balance | 39,313 | |
Other | ||
Marketable Securities [Roll Forward] | ||
Beginning balance | 568 | |
Sale of marketable securities | (57) | |
Transfer of PREIT investment balance at Conversion Date | 0 | |
Increase (decrease) in fair value of marketable securities | 42 | |
Ending balance | $ 553 |
Investments in Partially Owne_3
Investments in Partially Owned Entities (Alexander's Inc.) (Details) - Alexanders Inc $ / shares in Units, $ in Thousands | Mar. 31, 2019USD ($)$ / sharesshares |
Equity Method Investments And Income From Equity Method Investments | |
Ownership common shares, investee (in shares) | shares | 1,654,068 |
Equity method ownership percentage | 32.40% |
Closing share price (in dollars per share) | $ / shares | $ 376.17 |
Equity method investment fair value | $ 622,211 |
Excess of investee's fair value over carrying amount | 515,425 |
Excess of investee's carrying amount over equity in net assets | $ 39,097 |
Investments in Partially Owne_4
Investments in Partially Owned Entities (Urban Edge Properties) (Details) - UE $ in Thousands | Mar. 04, 2019USD ($)shares |
Schedule Of Equity Method Investments | |
Shares sold (shares) | shares | 5,717,184 |
Proceeds from sale of equity method investments | $ 108,512 |
Gain on sale of equity investments | $ 62,395 |
Investments in Partially Owne_5
Investments in Partially Owned Entities (61 Ninth Avenue) (Details) ft² in Thousands, $ in Thousands | Jan. 28, 2019USD ($)ft² | Jan. 27, 2019USD ($) | Mar. 31, 2019 |
Joint Venture | 61 9th Avenue | |||
Schedule Of Equity Method Investments | |||
Equity method ownership percentage | 45.10% | ||
61 9th Avenue | Office and Retail Property | |||
Schedule Of Equity Method Investments | |||
Net proceeds from debt | $ 31,000 | ||
61 9th Avenue | Office and Retail Property | Maturing in January 2026 | |||
Schedule Of Equity Method Investments | |||
Loans payable | $ 167,500 | ||
Square footage of real estate property (in sqft) | ft² | 166 | ||
Debt term (in years) | 7 years | ||
61 9th Avenue | Office and Retail Property | Maturing in 2021 | |||
Schedule Of Equity Method Investments | |||
Loans payable | $ 90,000 | ||
LIBOR | 61 9th Avenue | Office and Retail Property | Maturing in January 2026 | |||
Schedule Of Equity Method Investments | |||
Spread Over LIBOR (percent) | 1.35% | ||
Debt instrument, interest rate, stated percentage (percent) | 3.85% | ||
LIBOR | 61 9th Avenue | Office and Retail Property | Maturing in 2021 | |||
Schedule Of Equity Method Investments | |||
Spread Over LIBOR (percent) | 3.05% |
Investments in Partially Owne_6
Investments in Partially Owned Entities (Toys R Us) (Details) - Toys R Us - USD ($) | Mar. 31, 2019 | Feb. 01, 2019 | Dec. 31, 2018 |
Schedule Of Equity Method Investments | |||
Equity method ownership percentage | 32.50% | ||
Equity method investment, aggregate cost | $ 0 | ||
Tax basis of investments, capital loss for income tax purposes | $ 420,000,000 |
Investments in Partially Owne_7
Investments in Partially Owned Entities (Summary of Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule Of Equity Method Investments | ||
Carrying amount of investments in partially owned entities | $ 730,264 | $ 858,113 |
Other liabilities | ||
Schedule Of Equity Method Investments | ||
Carrying amount of investments in partially owned entities | $ (117,375) | (109,696) |
330 Madison Avenue | Other liabilities | ||
Schedule Of Equity Method Investments | ||
Equity method ownership percentage | 25.00% | |
Carrying amount of investments in partially owned entities | $ (60,054) | (58,117) |
7 West 34th Street | Other liabilities | ||
Schedule Of Equity Method Investments | ||
Equity method ownership percentage | 53.00% | |
Carrying amount of investments in partially owned entities | $ (51,464) | (51,579) |
85 Tenth Avenue | Other liabilities | ||
Schedule Of Equity Method Investments | ||
Equity method ownership percentage | 49.90% | |
Carrying amount of investments in partially owned entities | $ (5,857) | 0 |
Partially Owned Office Buildings | ||
Schedule Of Equity Method Investments | ||
Carrying amount of investments in partially owned entities | $ 478,240 | 499,005 |
Alexanders Inc | ||
Schedule Of Equity Method Investments | ||
Equity method ownership percentage | 32.40% | |
Carrying amount of investments in partially owned entities | $ 106,786 | 107,983 |
PREIT | ||
Schedule Of Equity Method Investments | ||
Carrying amount of investments in partially owned entities | 0 | 59,491 |
UE | ||
Schedule Of Equity Method Investments | ||
Carrying amount of investments in partially owned entities | 0 | 45,344 |
Other investments | ||
Schedule Of Equity Method Investments | ||
Carrying amount of investments in partially owned entities | $ 145,238 | $ 146,290 |
Investments in Partially Owne_8
Investments in Partially Owned Entities (Summary of Income (Loss) ) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule Of Equity Method Investments | ||
Our share of net income (loss) | $ 7,320 | $ (9,904) |
Alexanders Inc | ||
Schedule Of Equity Method Investments | ||
Equity method ownership percentage | 32.40% | |
Equity in net income (loss) | $ 5,717 | (3,209) |
Management, leasing and development fees | 1,057 | 1,208 |
Our share of net income (loss) | 6,774 | (2,001) |
Partially Owned Office Buildings | ||
Schedule Of Equity Method Investments | ||
Our share of net income (loss) | 106 | (4,283) |
Other investments | ||
Schedule Of Equity Method Investments | ||
Our share of net income (loss) | $ 440 | (3,620) |
One Park Avenue | ||
Schedule Of Equity Method Investments | ||
Transfer tax | 4,978 | |
Alexanders Inc | Kings Plaza Regional Shopping Center | ||
Schedule Of Equity Method Investments | ||
Transfer tax | $ 7,708 |
220 Central Park South 220 CPS
220 Central Park South 220 CPS - Narrative (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2019USD ($)ft²unit | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($)ft²unit | |
Real Estate [Line Items] | |||
Net gain on sale of real estate | $ 220,294 | $ 0 | |
Income tax expense | 29,743 | 2,554 | |
Repayments of construction loan | $ 123,533 | $ 0 | |
220 Central Park South | |||
Real Estate [Line Items] | |||
Square footage of real estate property (in sqft) | ft² | 397 | 397 | |
Development costs | $ 1,400,000 | $ 1,400,000 | |
Development costs expended | $ 1,300,000 | $ 1,300,000 | |
Number of condominium units sold (unit) | unit | 12 | 23 | |
Cash proceeds from the sale of real estate | $ 425,484 | $ 640,260 | |
Net gain on sale of real estate | 157,899 | ||
Income tax expense | 26,945 | ||
Repayments of construction loan | 637,000 | ||
Construction loan | $ 950,000 | $ 950,000 |
Properties Held for Sale - Narr
Properties Held for Sale - Narrative (Details) ft² in Thousands, $ in Thousands | Apr. 18, 2019USD ($)ft² | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Real Estate [Line Items] | ||||
Real estate held-for-sale | $ 229,567 | $ 99,627 | ||
Subsequent Event | ||||
Real Estate [Line Items] | ||||
Payments to acquire noncontrolling interest interest in joint venture | $ 26,000 | |||
Payments for transaction costs for joint venture | 56,000 | |||
Real estate held-for-sale | 5,556,000 | |||
Tax gain from real estate joint venture | 735,000 | |||
666 Fifth Avenue | Subsequent Event | ||||
Real Estate [Line Items] | ||||
Payments of mortgage loans held-for-sale | 390,000 | |||
655 Fifth Avenue | Subsequent Event | ||||
Real Estate [Line Items] | ||||
Payments of mortgage loans held-for-sale | 140,000 | |||
640 Fifth Avenue | Subsequent Event | ||||
Real Estate [Line Items] | ||||
Proceeds from mortgage loan | $ 500,000 | |||
Retail | Subsequent Event | ||||
Real Estate [Line Items] | ||||
Square footage of real estate property (in sqft) | ft² | 489 | |||
Office | Subsequent Event | ||||
Real Estate [Line Items] | ||||
Square footage of real estate property (in sqft) | ft² | 327 | |||
Forecast | ||||
Real Estate [Line Items] | ||||
Proceeds from real estate joint ventures | $ 2,600,000 | |||
Fifth Avenue and Times Square JV | Joint Venture | Subsequent Event | ||||
Real Estate [Line Items] | ||||
Aggregate of preferred equity interests | $ 1,827,750 | |||
Preferred equity coupon, stated percentage (percent) | 4.25% | |||
Fifth Avenue and Times Square JV | 666 Fifth Avenue | Joint Venture | Subsequent Event | ||||
Real Estate [Line Items] | ||||
Equity method ownership percentage | 52.00% | |||
Aggregate of preferred equity interests | $ 390,000 | |||
Fifth Avenue and Times Square JV | 655 Fifth Avenue | Joint Venture | Subsequent Event | ||||
Real Estate [Line Items] | ||||
Equity method ownership percentage | 50.00% | |||
Aggregate of preferred equity interests | $ 140,000 | |||
Fifth Avenue and Times Square JV | 640 Fifth Avenue | Joint Venture | Subsequent Event | ||||
Real Estate [Line Items] | ||||
Equity method ownership percentage | 52.00% | |||
Aggregate of preferred equity interests | $ 0 | |||
Fifth Avenue and Times Square JV | Vornado Realty Trust | Joint Venture | Subsequent Event | ||||
Real Estate [Line Items] | ||||
Equity method ownership percentage | 51.50% | |||
Equity method effective ownership percentage | 51.00% | |||
Aggregate of preferred equity interests | $ 500,000 | |||
Proceeds from real estate joint ventures | $ 1,198,000 | |||
Fifth Avenue and Times Square JV | Increase in Percentage After Fifth Anniversary | Joint Venture | Subsequent Event | ||||
Real Estate [Line Items] | ||||
Preferred equity coupon, stated percentage (percent) | 4.75% | |||
Investors | Fifth Avenue and Times Square JV | Joint Venture | Subsequent Event | ||||
Real Estate [Line Items] | ||||
Equity method ownership percentage | 48.50% | |||
Equity method effective ownership percentage | 47.20% |
Properties Held for Sale - Summ
Properties Held for Sale - Summary of Preferred Equity Interests and Effective Ownership Interest (Details) - Fifth Avenue and Times Square JV - Subsequent Event - Joint Venture $ in Thousands | Apr. 18, 2019USD ($) |
Real Estate [Line Items] | |
Aggregate of preferred equity interests | $ 1,827,750 |
640 Fifth Avenue | |
Real Estate [Line Items] | |
Equity method ownership percentage | 52.00% |
Aggregate of preferred equity interests | $ 0 |
655 Fifth Avenue | |
Real Estate [Line Items] | |
Equity method ownership percentage | 50.00% |
Aggregate of preferred equity interests | $ 140,000 |
666 Fifth Avenue | |
Real Estate [Line Items] | |
Equity method ownership percentage | 52.00% |
Aggregate of preferred equity interests | $ 390,000 |
689 Fifth Avenue | |
Real Estate [Line Items] | |
Equity method ownership percentage | 52.00% |
Aggregate of preferred equity interests | $ 130,000 |
697 to 703 Fifth Avenue | |
Real Estate [Line Items] | |
Equity method ownership percentage | 44.80% |
Aggregate of preferred equity interests | $ 0 |
1535 Broadway | |
Real Estate [Line Items] | |
Equity method ownership percentage | 52.00% |
Aggregate of preferred equity interests | $ 628,875 |
1540 Broadway | |
Real Estate [Line Items] | |
Equity method ownership percentage | 52.00% |
Aggregate of preferred equity interests | $ 538,875 |
Vornado Realty Trust | |
Real Estate [Line Items] | |
Equity method ownership percentage | 51.50% |
Aggregate of preferred equity interests | $ 500,000 |
Properties Held for Sale - Su_2
Properties Held for Sale - Summary of Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets held for sale: | ||
Right-of-use assets | $ 457,662 | $ 0 |
Receivable arising from the straight-lining of rents | 766,634 | 935,131 |
Deferred leasing costs, net | 345,241 | 400,313 |
Identified intangible assets, net | 34,161 | 136,781 |
Assets held for sale | 3,027,058 | 0 |
Liabilities related to assets held for sale: | ||
Mortgages payable, net | 6,519,189 | 8,167,798 |
Lease liabilities | 484,173 | 0 |
Deferred revenue | 71,328 | 167,730 |
Liabilities related to assets held for sale | 1,097,350 | $ 0 |
Fifth Avenue and Times Square JV | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Assets held for sale: | ||
Real estate, net | 2,656,509 | |
Right-of-use assets | 49,134 | |
Restricted cash | 8,828 | |
Receivable arising from the straight-lining of rents | 167,612 | |
Deferred leasing costs, net | 70,511 | |
Identified intangible assets, net | 74,464 | |
Assets held for sale | 3,027,058 | |
Liabilities related to assets held for sale: | ||
Mortgages payable, net | 971,618 | |
Lease liabilities | 41,235 | |
Deferred revenue | 84,497 | |
Liabilities related to assets held for sale | $ 1,097,350 |
Identified Intangible Assets _3
Identified Intangible Assets and Liabilities - Schedule of Identified Intangible Assets and Intangible Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross amount | $ 131,910 | $ 308,895 |
Accumulated amortization | (97,749) | (172,114) |
Total, net | 34,161 | 136,781 |
Gross amount | 386,512 | 503,373 |
Accumulated amortization | (321,152) | (341,779) |
Total, net | $ 65,360 | $ 161,594 |
Identified Intangible Assets _4
Identified Intangible Assets and Liabilities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Below Market Leases Net Of Above Market Leases | ||
Finite-Lived Intangible Assets and Liabilities | ||
Increase to rental income | $ 6,525 | $ 10,581 |
Other Identified Intangible Assets | ||
Finite-Lived Intangible Assets and Liabilities | ||
Amortization of intangible assets | $ 3,545 | $ 4,876 |
Identified Intangible Assets _5
Identified Intangible Assets and Liabilities - Schedule of Future Amortization Expense of Intangible Assets (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Other Identified Intangible Assets | |
Finite-Lived Intangible Assets and Liabilities | |
2020 | $ 6,308 |
2021 | 4,779 |
2022 | 3,049 |
2023 | 2,962 |
2024 | 2,350 |
Below Market Leases Net Of Above Market Leases | |
Finite-Lived Intangible Assets and Liabilities | |
2020 | 16,605 |
2021 | 11,932 |
2022 | 8,800 |
2023 | 6,269 |
2024 | $ 2,497 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) ft² in Thousands | Mar. 26, 2019USD ($) | Mar. 25, 2019USD ($)credit_facility | Mar. 01, 2019USD ($) | Feb. 12, 2019USD ($)ft² | Feb. 11, 2019USD ($) | Feb. 04, 2019USD ($)ft² | Feb. 03, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument | |||||||||
Unsecured revolving credit facilities | $ 530,000,000 | $ 80,000,000 | |||||||
Maturing in February 2024 | 435 Seventh Avenue | Retail | |||||||||
Debt Instrument | |||||||||
Refinancing | $ 95,700,000 | ||||||||
Square footage of real estate property (in sqft) | ft² | 43 | ||||||||
Maturing in February 2024 | 435 Seventh Avenue | Retail | LIBOR | |||||||||
Debt Instrument | |||||||||
Spread Over LIBOR (percent) | 1.30% | ||||||||
Debt instrument, interest rate, stated percentage (percent) | 3.78% | ||||||||
Maturing in August 2019 | 435 Seventh Avenue | Retail | LIBOR | |||||||||
Debt Instrument | |||||||||
Spread Over LIBOR (percent) | 2.25% | ||||||||
Maturing in August 2019 | Mortgages | 435 Seventh Avenue | Retail | |||||||||
Debt Instrument | |||||||||
Repayments of debt | $ 95,700,000 | ||||||||
Maturing in April 2024 | 100 West 33rd Street | Retail | |||||||||
Debt Instrument | |||||||||
Square footage of real estate property (in sqft) | ft² | 256 | ||||||||
Maturing in April 2024 | 100 West 33rd Street | Retail | LIBOR | |||||||||
Debt Instrument | |||||||||
Spread Over LIBOR (percent) | 1.55% | ||||||||
Debt instrument, interest rate, stated percentage (percent) | 4.03% | ||||||||
Number of extensions (extension) | 2 | ||||||||
Length of extension available | 1 year | ||||||||
Maturing in April 2024 | 100 West 33rd Street | Office and Retail Property | |||||||||
Debt Instrument | |||||||||
Refinancing | $ 580,000,000 | ||||||||
Square footage of real estate property (in sqft) | ft² | 1,100 | ||||||||
Maturing in April 2024 | 100 West 33rd Street | Office | |||||||||
Debt Instrument | |||||||||
Square footage of real estate property (in sqft) | ft² | 859 | ||||||||
Maturing in July 2020 | 100 West 33rd Street | Retail | LIBOR | |||||||||
Debt Instrument | |||||||||
Spread Over LIBOR (percent) | 1.65% | ||||||||
Maturing in July 2020 | Mortgages | 100 West 33rd Street | Retail | |||||||||
Debt Instrument | |||||||||
Repayments of debt | $ 580,000,000 | ||||||||
Senior Unsecured Notes Due 2022 | Senior Unsecured Notes | |||||||||
Debt Instrument | |||||||||
Debt instrument, interest rate, stated percentage (percent) | 5.00% | ||||||||
Debt instrument, redeemed | $ 400,000,000 | ||||||||
Debt instrument, redemption price, percentage (percent) | 105.51% | ||||||||
Charge related to prepayment and unamortized financing costs | $ 22,540,000 | ||||||||
Maturing in February 2022 | Line of Credit | |||||||||
Debt Instrument | |||||||||
Number of revolving credit facility (credit facility) | credit_facility | 2 | ||||||||
Revolving Credit Facility | Maturing in February 2022 | Line of Credit | |||||||||
Debt Instrument | |||||||||
Unsecured revolving credit facilities | $ 1,250,000,000 | ||||||||
Facility fee, percentage | 0.20% | ||||||||
Revolving Credit Facility | Maturing in February 2022 | Line of Credit | LIBOR | |||||||||
Debt Instrument | |||||||||
Spread Over LIBOR (percent) | 1.00% | ||||||||
Revolving Credit Facility | Maturing in March 2024 | Line of Credit | |||||||||
Debt Instrument | |||||||||
Unsecured revolving credit facilities | $ 1,500,000,000 | ||||||||
Revolving Credit Facility | Maturing in March 2024 | Line of Credit | LIBOR | |||||||||
Debt Instrument | |||||||||
Spread Over LIBOR (percent) | 0.90% | ||||||||
Revolving Credit Facility | Matures in January 2023 | Line of Credit | |||||||||
Debt Instrument | |||||||||
Length of extension available | 6 months |
Debt (Summary of Debt) (Details
Debt (Summary of Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument | ||
Deferred financing costs, net and other | $ (46,508) | $ (59,226) |
Mortgages payable, net | 6,519,189 | 8,167,798 |
Unsecured debt - Carrying amount | 845,261 | 844,002 |
Unsecured term loan, net | 745,076 | 744,821 |
Revolving credit facilities | 530,000 | 80,000 |
Unsecured debt and revolving credit facility | $ 2,120,337 | 1,668,823 |
Mortgages | ||
Debt Instrument | ||
Interest rate, end of period (percent) | 3.72% | |
Mortgages payable, gross | $ 6,556,034 | 8,215,847 |
Deferred financing costs, net and other | (36,845) | (48,049) |
Mortgages payable, net | $ 6,519,189 | 8,167,798 |
Mortgages | Fixed Rate | ||
Debt Instrument | ||
Interest rate, end of period (percent) | 3.52% | |
Mortgages payable, gross | $ 4,610,526 | 5,003,465 |
Mortgages | Variable Rate | ||
Debt Instrument | ||
Interest rate, end of period (percent) | 4.20% | |
Mortgages payable, gross | $ 1,945,508 | 3,212,382 |
Senior Unsecured Notes | ||
Debt Instrument | ||
Interest rate, end of period (percent) | 4.21% | |
Deferred financing costs, net and other | $ (4,739) | (5,998) |
Unsecured debt, gross | 850,000 | 850,000 |
Unsecured debt - Carrying amount | $ 845,261 | 844,002 |
Unsecured Term Loan | ||
Debt Instrument | ||
Interest rate, end of period (percent) | 3.87% | |
Deferred financing costs, net and other | $ (4,924) | (5,179) |
Unsecured debt, gross | 750,000 | 750,000 |
Unsecured term loan, net | $ 745,076 | 744,821 |
Unsecured Revolving Credit Facilities | ||
Debt Instrument | ||
Interest rate, end of period (percent) | 3.46% | |
Revolving credit facilities | $ 530,000 | $ 80,000 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests/Redeemable Partnership Units (Activity of Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Redeemable Noncontrolling Interests Rollforward | ||
Balance as of December 31 | $ 783,562 | $ 984,937 |
Net income (loss) | 12,202 | (1,124) |
Other comprehensive (loss) income | (1,276) | 654 |
Distributions | (8,488) | (7,906) |
Other, net | 18,448 | 3,713 |
Balance as of March 31 | 867,085 | 857,026 |
Class A Unit | ||
Redeemable Noncontrolling Interests Rollforward | ||
Redemption of Class A units for Vornado common shares, at redemption value | (3,181) | (8,392) |
Adjustments to carry redeemable Class A units at redemption value | $ 65,818 | $ (114,856) |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests/Redeemable Partnership Units (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Redeemable Noncontrolling Interest | ||
Redeemable noncontrolling interest, equity, common, carrying amount | $ 862,550 | $ 778,134 |
Class A Unit | ||
Redeemable Noncontrolling Interest | ||
Redeemable noncontrolling interest, equity, common, carrying amount | 862,550 | 778,134 |
Cumulative Redeemable Preferred Unit | ||
Redeemable Noncontrolling Interest | ||
Fair value of Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units | $ 50,561 | $ 50,561 |
Shareholders' Equity_Partners_3
Shareholders' Equity/Partners' Capital - Schedule of Dividends (Details) - $ / shares | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||
Common shares, dividends (in dollars per share) | $ 0.66 | $ 0.63 | |
Common shares of beneficial interest: authorized shares (shares) | 250,000,000 | 250,000,000 | 250,000,000 |
Preferred shares of beneficial interest: authorized shares (shares) | 110,000,000 | 110,000,000 | |
Convertible Preferred Stock | Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate, per-dollar-amount (in dollars per share) | $ 0.8125 | $ 0.8125 | |
Preferred shares of beneficial interest: authorized shares (shares) | 83,977 | ||
Preferred stock, dividend rate, percentage (percent) | 6.50% | ||
Redeemable Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, liquidation preference per share (in dollars per share/unit) | $ 25 | ||
Redeemable Preferred Stock | Series K Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate, per-dollar-amount (in dollars per share) | $ 0.3563 | 0.3563 | |
Preferred shares of beneficial interest: authorized shares (shares) | 12,000,000 | ||
Preferred stock, dividend rate, percentage (percent) | 5.70% | ||
Redeemable Preferred Stock | Series L Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate, per-dollar-amount (in dollars per share) | $ 0.3375 | 0.3375 | |
Preferred shares of beneficial interest: authorized shares (shares) | 12,000,000 | ||
Preferred stock, dividend rate, percentage (percent) | 5.40% | ||
Redeemable Preferred Stock | Series M Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate, per-dollar-amount (in dollars per share) | $ 0.3281 | $ 0.3281 | |
Preferred shares of beneficial interest: authorized shares (shares) | 12,780,000 | ||
Preferred stock, dividend rate, percentage (percent) | 5.25% | ||
Class A Unit | |||
Class of Stock [Line Items] | |||
Convertible shares (shares) | 1.9531 |
Shareholders' Equity_Partners_4
Shareholders' Equity/Partners' Capital - AOCI by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance, value | $ 5,107,883 | $ 5,007,701 | ||
Cumulative effect of accounting change | $ 14,519 | |||
Ending balance, value | 5,090,892 | 5,024,878 | ||
Accumulated Other Comprehensive (Loss) Income | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance, value | 7,664 | 128,682 | ||
Cumulative effect of accounting change | $ (108,374) | $ (108,374) | ||
Net current period other comprehensive (loss) income | (16,738) | 9,950 | ||
Amounts reclassified from AOCI | (2,311) | |||
Ending balance, value | (11,385) | 30,258 | ||
Marketable securities | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance, value | 0 | 109,554 | ||
Cumulative effect of accounting change | (109,554) | |||
Net current period other comprehensive (loss) income | 0 | 0 | ||
Amounts reclassified from AOCI | 0 | |||
Ending balance, value | 0 | 0 | ||
Pro-rata share of nonconsolidated subsidiaries' OCI | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance, value | 3,253 | 3,769 | ||
Cumulative effect of accounting change | (1,671) | |||
Net current period other comprehensive (loss) income | (985) | 346 | ||
Amounts reclassified from AOCI | (2,311) | |||
Ending balance, value | (43) | 2,444 | ||
Other | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance, value | (7,348) | (8,183) | ||
Cumulative effect of accounting change | 0 | |||
Net current period other comprehensive (loss) income | 1,276 | (654) | ||
Amounts reclassified from AOCI | 0 | |||
Ending balance, value | (6,072) | (8,837) | ||
Interest rate swaps | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance, value | 11,759 | 23,542 | ||
Cumulative effect of accounting change | $ 2,851 | |||
Net current period other comprehensive (loss) income | (17,029) | 10,258 | ||
Amounts reclassified from AOCI | 0 | |||
Ending balance, value | $ (5,270) | $ 36,651 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Unconsolidated VIEs | ||
Variable Interest Entities | ||
Net carrying amount of our investments in unconsolidated VIEs | $ 213,719,000 | $ 257,882,000 |
Consolidated VIEs | ||
Variable Interest Entities | ||
Variable interest entity, consolidated, carrying amount, assets | 4,601,771,000 | 4,445,436,000 |
Variable interest entity, consolidated, carrying amount, liabilities | $ 2,381,310,000 | $ 2,533,753,000 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Marketable securities | $ 39,866 | $ 152,198 |
Real estate fund investments | 322,858 | 318,758 |
Recurring | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Marketable securities | 39,866 | 152,198 |
Real estate fund investments | 322,858 | 318,758 |
Deferred compensation plan assets (included in restricted cash and other assets) | 101,923 | 96,524 |
Interest rate swaps (included in other assets) | 19,613 | 27,033 |
Total assets | 484,260 | 594,513 |
Mandatorily redeemable instruments (included in other liabilities) | 50,561 | 50,561 |
Interest rate swaps (included in other liabilities) | 24,851 | 15,236 |
Total liabilities | 75,412 | 65,797 |
Recurring | Level 1 | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Marketable securities | 39,866 | 152,198 |
Real estate fund investments | 0 | 0 |
Deferred compensation plan assets (included in restricted cash and other assets) | 64,361 | 58,716 |
Interest rate swaps (included in other assets) | 0 | 0 |
Total assets | 104,227 | 210,914 |
Mandatorily redeemable instruments (included in other liabilities) | 50,561 | 50,561 |
Interest rate swaps (included in other liabilities) | 0 | 0 |
Total liabilities | 50,561 | 50,561 |
Recurring | Level 2 | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Marketable securities | 0 | 0 |
Real estate fund investments | 0 | 0 |
Deferred compensation plan assets (included in restricted cash and other assets) | 0 | 0 |
Interest rate swaps (included in other assets) | 19,613 | 27,033 |
Total assets | 19,613 | 27,033 |
Mandatorily redeemable instruments (included in other liabilities) | 0 | 0 |
Interest rate swaps (included in other liabilities) | 24,851 | 15,236 |
Total liabilities | 24,851 | 15,236 |
Recurring | Level 3 | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Marketable securities | 0 | 0 |
Real estate fund investments | 322,858 | 318,758 |
Deferred compensation plan assets (included in restricted cash and other assets) | 37,562 | 37,808 |
Interest rate swaps (included in other assets) | 0 | 0 |
Total assets | 360,420 | 356,566 |
Mandatorily redeemable instruments (included in other liabilities) | 0 | 0 |
Interest rate swaps (included in other liabilities) | 0 | 0 |
Total liabilities | 0 | 0 |
Other Assets | Recurring | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Deferred compensation plan assets (included in restricted cash and other assets) | 93,176 | 88,122 |
Restricted Cash | Recurring | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Deferred compensation plan assets (included in restricted cash and other assets) | $ 8,747 | $ 8,402 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)investment | Dec. 31, 2018USD ($)investment | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Real estate fund investments | $ 322,858 | $ 318,758 |
Real estate fund investments | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Number of investments held by fund (investment) | investment | 4 | 4 |
Excess of fair value over cost | $ 6,706 | |
Level 3 | Real estate fund investments | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Real estate fund investments | $ 322,858 |
Fair Value Measurements (Unober
Fair Value Measurements (Unobervable Quantitative Input Ratios) (Details) - Recurring - Level 3 - Real estate fund investments | Mar. 31, 2019 | Dec. 31, 2018 |
Discount Rate | Minimum | ||
Unobservable Quantitative Input | ||
Real estate, measurement input | 0.100 | 0.100 |
Discount Rate | Maximum | ||
Unobservable Quantitative Input | ||
Real estate, measurement input | 0.150 | 0.150 |
Discount Rate | Weighted Average | ||
Unobservable Quantitative Input | ||
Real estate, measurement input | 0.134 | 0.134 |
Cap Rate | Minimum | ||
Unobservable Quantitative Input | ||
Real estate, measurement input | 0.055 | 0.054 |
Cap Rate | Maximum | ||
Unobservable Quantitative Input | ||
Real estate, measurement input | 0.077 | 0.077 |
Cap Rate | Weighted Average | ||
Unobservable Quantitative Input | ||
Real estate, measurement input | 0.058 | 0.057 |
Fair Value Measurements (Change
Fair Value Measurements (Changes in the Fair Value of Real Estate Fund Investments and Deferred Compensation Plan Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Real estate fund investments | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ 318,758 | $ 354,804 |
Purchases/additional fundings | 4,000 | 2,950 |
Net unrealized gain on held investments | 100 | 0 |
Dispositions | 0 | (20,291) |
Net realized loss on exited investments | 0 | (911) |
Ending balance | 322,858 | 336,552 |
Deferred Compensation Plan Assets | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 37,808 | 40,128 |
Sales | (2,114) | (1,635) |
Purchases/additional fundings | 908 | 14 |
Realized and unrealized gains | 523 | 678 |
Other, net | 437 | 300 |
Ending balance | $ 37,562 | $ 39,485 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements on a Nonrecurring Basis) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Level 3 | Nonrecurring | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Real estate asset | $ 14,971,000 | |
Real Estate | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Real estate asset | $ 0 | |
Real Estate | Nonrecurring | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Real estate asset | 14,971,000 | |
Real Estate | Level 1 | Nonrecurring | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Real estate asset | 0 | |
Real Estate | Level 2 | Nonrecurring | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Real estate asset | $ 0 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying amounts and fair value of financial instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured revolving credit facilities | $ 530,000 | $ 80,000 |
Deferred financing costs, net and other | 46,508 | 59,226 |
Senior Unsecured Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured debt, gross | 850,000 | 850,000 |
Deferred financing costs, net and other | 4,739 | 5,998 |
Unsecured Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured debt, gross | 750,000 | 750,000 |
Deferred financing costs, net and other | 4,924 | 5,179 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | 207,481 | 261,981 |
Mortgages payable, gross | 6,556,034 | 8,215,847 |
Unsecured revolving credit facilities | 530,000 | 80,000 |
Debt instrument - Carrying amount | 8,686,034 | 9,895,847 |
Carrying Amount | Senior Unsecured Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured debt, gross | 850,000 | 850,000 |
Carrying Amount | Unsecured Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured debt, gross | 750,000 | 750,000 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | 8,713,000 | 9,856,000 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, fair value | 207,000 | 262,000 |
Unsecured revolving credit facilities | 530,000 | 80,000 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgages payable, gross | 6,565,000 | 8,179,000 |
Fair Value | Senior Unsecured Notes | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured debt, gross | 868,000 | 847,000 |
Fair Value | Unsecured Term Loan | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured debt, gross | $ 750,000 | $ 750,000 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 31,654 | $ 13,669 | ||||
Performance Conditioned AO LTIP Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Threshold percentage to satisfy performance based condition (percent) | 110.00% | |||||
Weighted average grant date fair value (in usd per share) | $ 64.48 | |||||
Threshold period to satisfy performance based condition (in days) | 20 days | |||||
Stock options expiration term (years) | 10 years | |||||
Grant-Date Fair Value | $ 8,983 | |||||
Share-based compensation expense | 7,481 | |||||
Amortized share based compensation | $ 1,502 | |||||
Amortization period (years) | 4 years | |||||
Forecast | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ (2,578) | $ (2,578) | $ (2,578) | $ (8,477) | ||
General and Administrative Expense | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 16,211 |
Interest and Other Investment_3
Interest and Other Investment Income (Loss), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Investment Income [Line Items] | ||
Increase (decrease) in fair value of marketable securities: | $ 461 | $ (32,986) |
Interest on cash and cash equivalents and restricted cash | 2,067 | 3,557 |
Interest on loans receivable | 1,606 | 743 |
Dividends on marketable securities | 0 | 3,353 |
Other, net | 911 | 949 |
Interest and other investment income, net | 5,045 | (24,384) |
Lexington Realty Trust | ||
Net Investment Income [Line Items] | ||
Increase (decrease) in fair value of marketable securities: | 16,068 | (32,875) |
PREIT | ||
Net Investment Income [Line Items] | ||
Increase (decrease) in fair value of marketable securities: | (15,649) | 0 |
Other | ||
Net Investment Income [Line Items] | ||
Increase (decrease) in fair value of marketable securities: | $ 42 | $ (111) |
Interest and Debt Expense (Deta
Interest and Debt Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest and Debt Expense [Abstract] | ||
Interest expense | $ 117,647 | $ 94,788 |
Capitalized interest and debt expense | (23,325) | (14,726) |
Amortization of deferred financing costs | 8,141 | 8,104 |
Interest and debt expense, Total | $ 102,463 | $ 88,166 |
Interest and Debt Expense - Foo
Interest and Debt Expense - Footnote (Details) - Senior Unsecured Notes - Senior Unsecured Notes Due 2022 - USD ($) | Mar. 31, 2019 | Mar. 01, 2019 |
Debt Instrument, Redemption [Line Items] | ||
Charge related to prepayment and unamortized financing costs | $ 22,540,000 | |
Debt instrument, redeemed | $ 400,000,000 | |
Debt instrument, interest rate, stated percentage (percent) | 5.00% |
Income (Loss) Per Share_Incom_3
Income (Loss) Per Share/Income (Loss) Per Class A Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Income from continuing operations, net of income attributable to noncontrolling interests / in consolidated subsidiaries | $ 194,150 | $ 10,021 |
Loss from discontinued operations, net of income attributable to noncontrolling interests | (128) | (341) |
Net income attributable to Vornado / Vornado Realty L.P. | 194,022 | 9,680 |
Preferred share dividends / unit distributions | (12,534) | (13,035) |
Preferred share / unit issuance costs | 0 | (14,486) |
NET INCOME (LOSS) attributable to common shareholders / Class A unitholders | 181,488 | (17,841) |
Earnings allocated to unvested participating securities | (19) | (11) |
Numerator for basic income (loss) per share / per Class A unit | 181,469 | (17,852) |
Convertible preferred share dividends / unit distributions | 15 | 0 |
Numerator for diluted income (loss) per share | $ 181,484 | $ (17,852) |
Denominator: | ||
Denominator for basic income (loss) per share - weighted average shares (in shares) | 190,689 | 190,081 |
Vornado employee stock options and restricted share / unit awards (in shares) | 271 | 0 |
Convertible preferred shares/units | 36 | 0 |
Denominator for diluted income (loss) per share - weighted average shares and assumed conversions (in shares) | 190,996 | 190,081 |
INCOME (LOSS) PER COMMON SHARE – BASIC: | ||
Income (loss) from continuing operations, net (in dollars per share) | $ 0.95 | $ (0.09) |
Net income (loss) per common share (in dollars per share) | 0.95 | (0.09) |
INCOME (LOSS) PER COMMON SHARE – DILUTED: | ||
Income (loss) from continuing operations, net (in dollars per share) | 0.95 | (0.09) |
Net income (loss) per common share (in dollars per share) | $ 0.95 | $ (0.09) |
Vornado Realty L.P. | ||
Numerator: | ||
Income from continuing operations, net of income attributable to noncontrolling interests / in consolidated subsidiaries | $ 206,361 | $ 8,919 |
Loss from discontinued operations, net of income attributable to noncontrolling interests | (137) | (363) |
Net income attributable to Vornado / Vornado Realty L.P. | 206,224 | 8,556 |
Preferred share dividends / unit distributions | (12,575) | (13,084) |
Preferred share / unit issuance costs | 0 | (14,486) |
NET INCOME (LOSS) attributable to common shareholders / Class A unitholders | 193,649 | (19,014) |
Earnings allocated to unvested participating securities | (1,147) | (771) |
Numerator for basic income (loss) per share / per Class A unit | 192,502 | (19,785) |
Convertible preferred share dividends / unit distributions | 15 | 0 |
Numerator for diluted income (loss) per Class A unit | $ 192,517 | $ (19,785) |
Denominator: | ||
Denominator for basic income (loss) per Class A unit – weighted average units (in shares) | 202,772 | 201,929 |
Vornado employee stock options and restricted share / unit awards (in shares) | 536 | 0 |
Convertible preferred shares/units | 36 | 0 |
Denominator for diluted income (loss) per Class A unit - weighted average units and assumed conversions | 203,344 | 201,929 |
INCOME (LOSS) PER CLASS A UNIT – BASIC: | ||
Income (loss) from continuing operations, net (in dollars per unit) | $ 0.95 | $ (0.10) |
Net income (loss) per Class A unit (in dollars per unit) | 0.95 | (0.10) |
INCOME (LOSS) PER CLASS A UNIT – DILUTED: | ||
Income (loss) from continuing operations, net (in dollars per unit) | 0.95 | (0.10) |
Net income (loss) per Class A unit (in dollars per unit) | $ 0.95 | $ (0.10) |
Income (Loss) Per Share_Incom_4
Income (Loss) Per Share/Income (Loss) Per Class A Unit (Narrative) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||
Weighted average common share / class A unit equivalents of excluded dilutive securities due to anti-dilutive effect | 12,525 | 13,334 |
Vornado Realty L.P. | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||
Weighted average common share / class A unit equivalents of excluded dilutive securities due to anti-dilutive effect | 177 | 1,446 |
Leases - Lessor, Operating Leas
Leases - Lessor, Operating Lease, Payments to be Received (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | ||
For the remainder of 2019 | $ 1,977,372 | |
2020 | 1,525,340 | |
2021 | 1,492,760 | |
2022 | 1,433,740 | |
2023 | 1,298,470 | |
2024 | 1,080,729 | |
Thereafter | $ 4,929,317 | |
Under ASC 840 | ||
2019 | $ 1,547,162 | |
2020 | 1,510,097 | |
2021 | 1,465,024 | |
2022 | 1,407,615 | |
2023 | 1,269,141 | |
Thereafter | $ 5,832,467 |
Leases - Components of Fixed an
Leases - Components of Fixed and Variable Lease Revenues (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Fixed lease revenues | $ 414,877 |
Variable lease revenues | 72,429 |
Total lease revenues | $ 487,306 |
Leases - Narrative (Details)
Leases - Narrative (Details) ft² in Thousands, $ in Thousands | Mar. 31, 2019USD ($)ft² | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) |
Leases [Line Items] | |||
Operating lease, right-of-use asset | $ 457,662 | $ 0 | |
Operating lease liabilities | 484,173 | 0 | |
Decrease in other liabilities | (292,187) | (311,806) | |
Decrease in deferred revenue | (71,328) | (167,730) | |
Decrease in identified intangible assets, net | (34,161) | (136,781) | |
Decrease in other assets | $ (497,219) | $ (431,938) | |
Accounting Standards Update 2016-02 | |||
Leases [Line Items] | |||
Operating lease, right-of-use asset | $ 526,866 | ||
Operating lease liabilities | 526,866 | ||
Decrease in other liabilities | 37,269 | ||
Decrease in deferred revenue | 4,267 | ||
Decrease in identified intangible assets, net | 23,665 | ||
Decrease in other assets | $ 1,584 | ||
Farley Office and Retail Building | |||
Leases [Line Items] | |||
Equity method ownership percentage | 95.00% | ||
Square footage of real estate property (in sqft) | ft² | 850 | ||
Lessee, operating lease, lease not yet commenced, term (years) | 99 years | ||
Farley Office and Retail Building | Office | |||
Leases [Line Items] | |||
Square footage of real estate property (in sqft) | ft² | 730 | ||
Farley Office and Retail Building | Retail | |||
Leases [Line Items] | |||
Square footage of real estate property (in sqft) | ft² | 120 |
Leases - Schedule of Amounts In
Leases - Schedule of Amounts Included in the Measurement of Lease Liability (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 41 years 6 months 18 days |
Weighted average discount rate (percent) | 4.89% |
Cash paid for operating leases | $ 6,111 |
Leases - Schedule of Components
Leases - Schedule of Components of Rent Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Fixed rent expense | $ 10,626 |
Variable rent expense | 620 |
Rent expense | $ 11,246 |
Leases - Lessee, Operating Leas
Leases - Lessee, Operating Lease, Liability, Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
For the remainder of 2019 | $ 20,361 | |
2020 | 28,352 | |
2021 | 28,745 | |
2022 | 29,646 | |
2023 | 30,061 | |
2024 | 30,495 | |
Thereafter | 1,037,252 | |
Total undiscounted cash flows | 1,204,912 | |
Present value discount | (720,739) | |
Lease liabilities | 484,173 | $ 0 |
Farley Office and Retail Building | ||
Operating Lease Liabilities, Payments Due [Abstract] | ||
For the remainder of 2019 | 6,822 | |
2020 | 10,402 | |
2021 | 7,229 | |
2022 | 7,444 | |
2023 | 7,809 | |
2024 | 8,330 | |
Thereafter | $ 519,048 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 46,147 |
2020 | 45,258 |
2021 | 42,600 |
2022 | 43,840 |
2023 | 44,747 |
Thereafter | $ 1,612,627 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Other Commitments | |
Guarantees and master leases | $ 582,000,000 |
Outstanding letters of credit | 15,365,000 |
Commitment to fund additional capital to partially owned entities | 16,000,000 |
Construction commitment | 774,000,000 |
General Liability | |
Insurance | |
Insurance limit per property | 300,000,000 |
Insurance limit per occurrence | 300,000,000 |
All Risk And Rental Value | |
Insurance | |
Insurance limit per occurrence | 2,000,000,000 |
Earthquake California Properties | |
Insurance | |
Insurance limit per occurrence | 260,000,000 |
Insurance maximum coverage limit in aggregate | $ 260,000,000 |
Vornado deductible, percentage of property value | 5.00% |
Terrorism Acts | |
Insurance | |
Insurance limit per occurrence | $ 4,000,000,000 |
Insurance maximum coverage limit in aggregate | 4,000,000,000 |
NBCR Acts | |
Insurance | |
Insurance limit per occurrence | 2,000,000,000 |
Insurance maximum coverage limit in aggregate | 2,000,000,000 |
PPIC | NBCR Acts | |
Insurance | |
Insurance deductible | $ 1,453,000 |
Insurance deductible percentage of balance of covered loss | 19.00% |
Joint Venture | Moynihan Office Building | |
Other Commitments | |
Equity method ownership percentage | 95.00% |
Segment Information (Summary of
Segment Information (Summary of net income and EBITDA reconciliation by segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting [Abstract] | ||
Net income | $ 213,044 | $ 282 |
(Income) loss from partially owned entities | (7,320) | 9,904 |
Interest and other investment (income) loss, net | (5,045) | 24,384 |
Net gains on disposition of wholly owned and partially owned assets | (220,294) | 0 |
NOI attributable to noncontrolling interests in consolidated subsidiaries | (17,403) | (17,312) |
Loss from real estate fund investments | 167 | 8,807 |
Depreciation and amortization expense | 116,709 | 108,686 |
General and administrative expense | 58,020 | 42,533 |
Transaction related costs and other | 149 | 13,156 |
NOI from partially owned entities | 67,402 | 67,513 |
Interest and debt expense | 102,463 | 88,166 |
Loss from discontinued operations | 137 | 363 |
Income tax expense | 29,743 | 2,554 |
NOI at share | 337,772 | 349,036 |
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | (5,181) | (17,948) |
NOI at share - cash basis | $ 332,591 | $ 331,088 |
Segment Information - Summary o
Segment Information - Summary of NOI by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Information | ||
Total revenues | $ 534,668 | $ 536,437 |
Operating expenses | 246,895 | 237,602 |
NOI - consolidated | 287,773 | 298,835 |
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (17,403) | (17,312) |
Add: NOI from partially owned entities | 67,402 | 67,513 |
NOI at share | 337,772 | 349,036 |
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | (5,181) | (17,948) |
NOI at share - cash basis | 332,591 | 331,088 |
New York | ||
Segment Information | ||
Total revenues | 443,285 | 448,484 |
Operating expenses | 198,095 | 197,916 |
NOI - consolidated | 245,190 | 250,568 |
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (11,407) | (11,745) |
Add: NOI from partially owned entities | 49,575 | 49,773 |
NOI at share | 283,358 | 288,596 |
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | (6,618) | (17,323) |
NOI at share - cash basis | 276,740 | 271,273 |
Other | ||
Segment Information | ||
Total revenues | 91,383 | 87,953 |
Operating expenses | 48,800 | 39,686 |
NOI - consolidated | 42,583 | 48,267 |
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (5,996) | (5,567) |
Add: NOI from partially owned entities | 17,827 | 17,740 |
NOI at share | 54,414 | 60,440 |
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other | 1,437 | (625) |
NOI at share - cash basis | $ 55,851 | $ 59,815 |