Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 12, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'RECKSON OPERATING PARTNERSHIP LP | ' |
Entity Central Index Key | '0000930810 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding (shares) | ' | 0 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commercial real estate properties, at cost: | ' | ' |
Land and land interests | $1,335,812 | $1,086,327 |
Building and improvements | 3,985,981 | 4,044,636 |
Building leasehold and improvements | 781,420 | 782,260 |
Property under capital lease | 0 | 22,866 |
Commercial real estate properties, gross | 6,103,213 | 5,936,089 |
Less: accumulated depreciation | -943,472 | -857,265 |
Total commercial real estate properties, net | 5,159,741 | 5,078,824 |
Cash and cash equivalents | 33,250 | 45,871 |
Restricted cash | 26,464 | 27,865 |
Tenant and other receivables, net of allowance of $4,243 and $4,148 in 2014 and 2013, respectively | 23,268 | 17,732 |
Deferred rents receivable, net of allowance of $14,059 and $15,587 in 2014 and 2013, respectively | 156,710 | 163,902 |
Preferred equity and other investments, net of discounts and deferred origination fees of $1,052 and $1,772 in 2014 and 2013, respectively | 396,017 | 369,364 |
Deferred costs, net of accumulated amortization of $60,303 and $53,254 in 2014 and 2013, respectively | 98,253 | 92,164 |
Other assets | 122,982 | 92,398 |
Total assets | 6,016,685 | 5,888,120 |
Liabilities | ' | ' |
Mortgage note and other loans payable | 550,000 | 629,266 |
Revolving credit facility | 244,000 | 220,000 |
Term loan and senior unsecured notes | 1,737,973 | 1,430,792 |
Accrued interest payable and other liabilities | 24,216 | 28,051 |
Accounts payable and accrued expenses | 55,200 | 41,869 |
Deferred revenue | 140,929 | 154,614 |
Capitalized lease obligation | 0 | 27,223 |
Deferred land leases payable | 391 | 21,621 |
Security deposits | 24,872 | 24,590 |
Total liabilities | 2,777,581 | 2,578,026 |
Commitments and contingencies | ' | ' |
Capital | ' | ' |
General partner capital | 2,894,139 | 2,963,296 |
Limited partner capital | 0 | 0 |
Accumulated other comprehensive loss | -3,313 | -3,981 |
Total ROP partner's capital | 2,890,826 | 2,959,315 |
Noncontrolling interests in other partnerships | 348,278 | 350,779 |
Total capital | 3,239,104 | 3,310,094 |
Total liabilities and capital | $6,016,685 | $5,888,120 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Tenant and other receivables, allowance | $4,243 | $4,148 |
Deferred rents receivable, allowance | 14,059 | 15,587 |
Preferred equity investments, deferred origination fees and discounts | 1,052 | 1,772 |
Deferred costs, accumulated amortization | $60,303 | $53,254 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues | ' | ' | ' | ' |
Rental revenue, net | $119,136 | $111,068 | $354,878 | $329,982 |
Escalation and reimbursement | 21,271 | 20,334 | 58,129 | 54,950 |
Investment income | 8,702 | 9,424 | 26,754 | 28,620 |
Other income | 1,104 | 624 | 2,301 | 3,613 |
Total revenues | 150,213 | 141,450 | 442,062 | 417,165 |
Expenses | ' | ' | ' | ' |
Operating expenses, including $5,121 and $14,063 (2014) and $4,687 and $13,258 (2013) of related party expenses | 33,090 | 31,849 | 96,557 | 90,569 |
Real estate taxes | 28,062 | 24,377 | 79,677 | 69,667 |
Ground rent | 2,711 | 2,712 | 8,134 | 8,332 |
Interest expense, net of interest income | 27,313 | 28,065 | 80,709 | 81,187 |
Amortization of deferred financing costs | 1,369 | 1,379 | 4,136 | 3,984 |
Depreciation and amortization | 42,267 | 37,782 | 130,334 | 111,968 |
Transaction related costs | 1,218 | 6 | 2,206 | 37 |
Marketing, general and administrative | 76 | 88 | 242 | 276 |
Total expenses | 136,106 | 126,258 | 401,995 | 366,020 |
Income from continuing operations before equity in net income from unconsolidated joint ventures and loss on early extinguishment of debt | 14,107 | 15,192 | 40,067 | 51,145 |
Equity in net income from unconsolidated joint ventures | 868 | 480 | 1,962 | 1,327 |
Loss on early extinguishment of debt | 0 | 0 | -519 | -76 |
Income from continuing operations | 14,975 | 15,672 | 41,510 | 52,396 |
Net (loss) income from discontinued operations | -58 | 1,622 | 1,996 | 5,732 |
(Loss) gain on sale of discontinued operations | -250 | 13,787 | 117,579 | 13,787 |
Net income | 14,667 | 31,081 | 161,085 | 71,915 |
Net income attributable to noncontrolling interests in other partnerships | -841 | -1,399 | -1,703 | -4,511 |
Net income attributable to ROP common unitholder | 13,826 | 29,682 | 159,382 | 67,404 |
Amounts attributable to ROP common unitholder: | ' | ' | ' | ' |
Net income from continuing operations | 14,134 | 14,273 | 39,807 | 47,885 |
Discontinued operations | -308 | 15,409 | 119,575 | 19,519 |
Net income attributable to ROP common unitholder | $13,826 | $29,682 | $159,382 | $67,404 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Related party expenses included in operating expenses | $5,121 | $4,687 | $14,063 | $13,258 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income attributable to ROP common unitholder | $13,826 | $29,682 | $159,382 | $67,404 |
Other comprehensive income: | ' | ' | ' | ' |
Change in net unrealized gain on derivative instruments | 275 | 85 | 668 | 755 |
Comprehensive income attributable to ROP common unitholder | $14,101 | $29,767 | $160,050 | $68,159 |
Consolidated_Statement_of_Capi
Consolidated Statement of Capital (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Increase (Decrease) in Partners' Capital | ' | ' |
Beginning balance | ' | $3,310,094 |
Contributions | ' | 1,305,408 |
Distributions | ' | -1,538,151 |
Net income | 14,667 | 161,085 |
Other comprehensive income | ' | 668 |
Ending balance | 3,239,104 | 3,239,104 |
General Partner's Capital Class A Common Units | Class A Common Units | ' | ' |
Increase (Decrease) in Partners' Capital | ' | ' |
Beginning balance | ' | 2,963,296 |
Contributions | ' | 1,305,408 |
Distributions | ' | -1,533,947 |
Net income | ' | 159,382 |
Ending balance | 2,894,139 | 2,894,139 |
Limited Partner's Capital | ' | ' |
Increase (Decrease) in Partners' Capital | ' | ' |
Beginning balance | ' | 0 |
Contributions | ' | 0 |
Distributions | ' | 0 |
Net income | ' | 0 |
Ending balance | 0 | 0 |
Noncontrolling Interests In Other Partnerships | ' | ' |
Increase (Decrease) in Partners' Capital | ' | ' |
Beginning balance | ' | 350,779 |
Distributions | ' | -4,204 |
Net income | ' | 1,703 |
Ending balance | 348,278 | 348,278 |
Accumulated Other Comprehensive Loss | ' | ' |
Increase (Decrease) in Partners' Capital | ' | ' |
Beginning balance | ' | -3,981 |
Other comprehensive income | ' | 668 |
Ending balance | ($3,313) | ($3,313) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating Activities | ' | ' |
Net income | $161,085 | $71,915 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 134,903 | 120,316 |
Equity in net income from unconsolidated joint venture | -1,962 | -1,327 |
Distributions of cumulative earnings from unconsolidated joint venture | 1,773 | 591 |
Gain on sale of discontinued operations | -117,579 | -13,787 |
Loss on early extinguishment of debt | 519 | 76 |
Deferred rents receivable | -12,528 | -13,732 |
Other non-cash adjustments | -30,431 | -35,414 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cashboperations | 1,401 | -3,035 |
Tenant and other receivables | -5,673 | -3,746 |
Deferred lease costs | -6,466 | -11,177 |
Other assets | -24,208 | -21,944 |
Accounts payable, accrued expenses and other liabilities and security deposits | 448 | -6,037 |
Deferred revenue and deferred land leases payable | 7,725 | 9,334 |
Net cash provided by operating activities | 109,007 | 92,033 |
Investing Activities | ' | ' |
Acquisitions of real estate property | -202,870 | ' |
Additions to land, buildings and improvements | -54,076 | -40,529 |
Restricted cashbcapital improvements/acquisitions | 0 | -211,053 |
Net proceeds from disposition of real estate | 137,059 | 211,048 |
Payments for (Proceeds from) Other Investing Activities | -40,000 | -19,831 |
Origination of preferred equity investments | 0 | -5,089 |
Redemption of preferred equity investments | 25,827 | 0 |
Net cash used in investing activities | -134,060 | -65,454 |
Financing Activities | ' | ' |
Repayments of mortgage note and other loans payable | -79,243 | -226 |
Proceeds from revolving credit facility, term loan and senior unsecured notes | 1,136,400 | 843,938 |
Repayments of revolving credit facility, term loan and senior unsecured notes | -805,298 | -574,000 |
Contributions from common unitholder | 1,301,408 | 988,360 |
Distributions to noncontrolling interests in other partnerships | -4,204 | -9,597 |
Distributions to common unitholder | -1,533,947 | -1,276,638 |
Deferred loan costs and capitalized lease obligation | -2,684 | -93 |
Net cash provided by (used in) financing activities | 12,432 | -28,256 |
Net decrease in cash and cash equivalents | -12,621 | -1,677 |
Cash and cash equivalents at beginning of period | 45,871 | 34,035 |
Cash and cash equivalents at end of period | 33,250 | 32,358 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ' | ' |
Tenant improvements and capital expenditures payable | 6,367 | 2,400 |
Deferred leasing payable | 12,927 | 1,122 |
Change in fair value of hedge | 400 | 469 |
Capital leased asset | 0 | 10,657 |
Contributions from common unit holder | $4,000 | $11,503 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Organization and Basis of Presentation | ' | ||||||||||||
Organization and Basis of Presentation | |||||||||||||
Reckson Operating Partnership, L.P., or ROP, commenced operations on June 2, 1995 and became a wholly-owned subsidiary of SL Green Operating Partnership, L.P., or the Operating Partnership, on January 25, 2007. The sole general partner of ROP is a wholly-owned subsidiary of the Operating Partnership. The sole limited partner of ROP is the Operating Partnership. The Operating Partnership is 96.25% owned by SL Green Realty Corp., or SL Green, as of September 30, 2014. SL Green is a self-administered and self-managed real estate investment trust, and is the sole managing general partner of the Operating Partnership. Unless the context requires otherwise, all references to "we," "our," "us" and the "Company" means ROP and all entities owned or controlled by ROP. | |||||||||||||
ROP is engaged in the acquisition, ownership, management and operation of commercial real estate properties, principally office properties and also owns land for future development, located in New York City, Westchester County and Connecticut, which collectively is also known as the New York Metropolitan area. | |||||||||||||
SL Green transferred a property with total assets of $98.7 million in May 2014 and two additional properties with total assets of $195.4 million in September 2014 to ROP. Under the business combinations guidance (Accounting Standard Codification 805-50), these transfers were determined to be transfers of businesses between the indirect parent company and its wholly-owned subsidiary. As such, the assets and liabilities of the properties were transferred at their carrying value and were recorded as of the beginning of the current reporting period as though the assets and liabilities had been transferred at that date. The financial statements and financial information presented for all prior periods have been retrospectively adjusted to furnish comparative information. | |||||||||||||
As of September 30, 2014, we owned the following properties in the New York Metropolitan area, primarily in midtown Manhattan, a borough of New York City. Our investments in the New York Metropolitan area also include investments in Westchester County and Connecticut, which are collectively known as the Suburban properties: | |||||||||||||
Location | Type | Number of | Square Feet | Weighted Average Occupancy(1) | |||||||||
Properties | |||||||||||||
Commercial: | |||||||||||||
Manhattan | Office | 11 | 6,444,400 | 94.1 | % | ||||||||
Retail | 3 | (2) | 343,692 | 98.4 | % | ||||||||
Development/Redevelopment | 1 | 104,000 | 72.5 | % | |||||||||
Fee Interest | 1 | 176,530 | 100 | % | |||||||||
16 | 7,068,622 | 94.2 | % | ||||||||||
Suburban | Office | 20 | 3,417,900 | 80.2 | % | ||||||||
Total commercial properties | 36 | 10,486,522 | 89.6 | % | |||||||||
Residential: | |||||||||||||
Manhattan | Residential | — | (2) | 222,855 | 96.1 | % | |||||||
Total portfolio | 36 | 10,709,377 | 89.8 | % | |||||||||
______________________________________________________________________ | |||||||||||||
-1 | The weighted average occupancy for commercial properties represents the total occupied square feet divided by total available rentable square feet. The weighted average occupancy for residential properties represents the total occupied units divided by total available units. | ||||||||||||
-2 | As of September 30, 2014, we owned a building that was comprised of 270,132 square feet of retail space and 222,855 square feet of residential space. For the purpose of this report, we have included the building as part of retail properties and have shown the square footage under its respective classifications. | ||||||||||||
As of September 30, 2014, we also held preferred equity investments with a book value of $355.8 million and other investments accounted for under the equity method with a book value of $40.2 million. | |||||||||||||
Basis of Quarterly Presentation | |||||||||||||
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the financial position of the Company at September 30, 2014 and the results of operations for the periods presented have been included. The operating results for the period presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These financial statements should be read in conjunction with the financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||||||
The consolidated balance sheet at December 31, 2013 has been derived from the audited financial statements as of that date, and adjusted for the transfer of three properties to ROP in 2014 but does not include all the information and footnotes required by U.S. GAAP for complete financial statements. Also, as a result of the transfer of these three properties to ROP, the consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2013, statement of cash flow for the nine months ended September 2013 and related financial information have been adjusted to furnish comparative information. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Significant Accounting Policies | ' | |||||||
Significant Accounting Policies | ||||||||
Principles of Consolidation | ||||||||
The consolidated financial statements include our accounts and those of our subsidiaries, which are wholly-owned or controlled by us. Entities which we do not control through our voting interest and entities which are variable interest entities, but where we are not the primary beneficiary, are accounted for under the equity method or as preferred equity investments. See Note 5, "Preferred Equity and Other Investments." ROP's investments in majority-owned and controlled real estate joint ventures are reflected in the financial statements on a consolidated basis with a reduction for the noncontrolling partners' interests. All significant intercompany balances and transactions have been eliminated. | ||||||||
We consolidate a variable interest entity, or VIE, in which we are considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. | ||||||||
A noncontrolling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to us. Noncontrolling interests are required to be presented as a separate component of capital in the consolidated balance sheet and the presentation of net income was modified to present earnings and other comprehensive income attributed to controlling and noncontrolling interests. | ||||||||
We assess the accounting treatment for each joint venture and preferred equity investment. This assessment includes a review of each joint venture or limited liability company agreement to determine which party has what rights and whether those rights are protective or participating. For all VIEs, we review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity's economic performance. In situations where we and our partner approve, among other things, the annual budget, receive a detailed monthly reporting package from us, meet on a quarterly basis to review the results of the joint venture, review and approve the joint venture's tax return before filing, and approve all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights that result in shared power of the activities that most significantly impact the performance of our joint venture. Our joint venture agreements typically contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan. | ||||||||
Investment in Commercial Real Estate Properties | ||||||||
On a periodic basis, we assess whether there are any indications that the value of our real estate properties may be impaired or that their carrying value may not be recoverable. A property's value is considered impaired if management's estimate of the aggregate future cash flows (undiscounted and without interest charges for consolidated properties) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property. We also evaluate our real estate properties for potential impairment when a real estate property has been classified as held for sale. Real estate assets held for sale are valued at the lower of their carrying value or fair value less costs to sell. We do not believe that the values of any of our consolidated properties were impaired at September 30, 2014. | ||||||||
We allocate the purchase price of real estate to land and building (inclusive of tenant improvements) and, if determined to be material, intangibles, such as the value of above- and below-market leases and origination costs associated with the in-place leases. We depreciate the amount allocated to building (inclusive of tenant improvements) over their estimated useful lives, which generally range from three to 40 years. We amortize the amount allocated to the above- and below-market leases over the remaining term of the associated lease, which generally range from one to 14 years, and record it as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income. We amortize the amount allocated to the values associated with in-place leases over the expected term of the associated lease, which generally range from one to 14 years. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below-market and determined to be material, we amortize such below-market lease value into rental income over the renewal period. | ||||||||
We recognized increases of $4.9 million, $16.0 million, $6.8 million and $20.2 million in rental revenue for the three and nine months ended September 30, 2014 and 2013, respectively, for the amortization of aggregate below-market leases in excess of above-market leases and a reduction in lease origination costs, resulting from the allocation of the purchase price of the applicable properties. In March 2014, we recognized income of $0.3 million for the amortization of the remaining value of below-market rate mortgage at 16 Court Street, Brooklyn, as a result of early repayment of debt. Excluding this one-time income, we recognized an increase in interest expense for the amortization of the above-market rate mortgages assumed of $0.1 million and $0.4 million for both the three and nine months ended September 30, 2014 and 2013, respectively. | ||||||||
The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of September 30, 2014 and December 31, 2013 (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(as adjusted) | ||||||||
Identified intangible assets (included in other assets): | ||||||||
Gross amount | $ | 254,824 | $ | 221,615 | ||||
Accumulated amortization | (173,726 | ) | (147,069 | ) | ||||
Net | $ | 81,098 | $ | 74,546 | ||||
Identified intangible liabilities (included in deferred revenue): | ||||||||
Gross amount | $ | 428,100 | $ | 420,261 | ||||
Accumulated amortization | (295,849 | ) | (268,375 | ) | ||||
Net | $ | 132,251 | $ | 151,886 | ||||
Investments in Unconsolidated Joint Ventures | ||||||||
We may originate loans for real estate acquisition, development and construction, or ADC arrangements, where we expect to receive some or all of the residual profit. When the risk and rewards of these ADC arrangements are essentially the same as an investor or joint venture partner, we account for these ADC arrangements as real estate investments under the equity method of accounting for investments, which is included in preferred equity and other investments on the consolidated balance sheets. Otherwise, we account for these ADC arrangements consistent with our loan accounting for our debt and preferred equity investments. | ||||||||
Revenue Recognition | ||||||||
Rental revenue is recognized on a straight-line basis over the term of the lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space. In order for the tenant to take possession, the leased space must be substantially ready for its intended use. To determine whether the leased space is substantially ready for its intended use, management evaluates whether we are or the tenant is the owner of tenant improvements for accounting purposes. When management concludes that we are the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of the finished space, which is when such tenant improvements are substantially complete. In certain instances, when management concludes that we are not the owner (the tenant is the owner) of tenant improvements, rental revenue recognition begins when the tenant takes possession of or controls the space. When management concludes that we are the owner of tenant improvements for accounting purposes, we record amounts funded to construct the tenant improvements as a capital asset. For these tenant improvements, we record amounts reimbursed by tenants as a reduction of the capital asset. When management concludes that the tenant is the owner of tenant improvements for accounting purposes, we record our contribution towards those improvements as a lease incentive, which is included in deferred costs, net on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the lease. The excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rents receivable on the consolidated balance sheets. We establish, on a current basis, an allowance for future potential tenant credit losses, which may occur against this account. The balance reflected on the consolidated balance sheets is net of such allowance. | ||||||||
In addition to base rent, our tenants also generally will pay their pro rata share of increases in real estate taxes and operating expenses for the building over a base year. In some leases, in lieu of paying additional rent based upon increases in building operating expenses, the tenant will pay additional rent based upon increases in the wage rate paid to porters over the porters' wage rate in effect during a base year or increases in the consumer price index over the index value in effect during a base year. In addition, many of our leases contain fixed percentage increases over the base rent to cover escalations. Electricity is most often supplied by the landlord either on a sub-metered basis, or rent inclusion basis (i.e., a fixed fee is included in the rent for electricity, which amount may increase based upon increases in electricity rates or increases in electrical usage by the tenant). Base building services other than electricity (such as heat, air conditioning and freight elevator service during business hours, and base building cleaning) are typically provided at no additional cost, with the tenant paying additional rent only for services which exceed base building services or for services which are provided outside normal business hours. These escalations are based on actual expenses incurred in the prior calendar year. If the expenses in the current year are different from those in the prior year, then during the current year, the escalations will be adjusted to reflect the actual expenses for the current year. | ||||||||
We record a gain on sale of real estate when title is conveyed to the buyer, subject to the buyer's financial commitment being sufficient to provide economic substance to the sale and we have no substantial economic involvement with the buyer. | ||||||||
Interest income on preferred equity investments is accrued based on the outstanding principal amount and contractual terms of the instruments and when, in the opinion of management, it is deemed collectible. Some of the preferred equity investments provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest are ultimately collectible, based on the underlying collateral and operations of the borrower. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt. | ||||||||
Deferred origination fees, original issue discounts and loan origination costs, if any, are recognized as a reduction to the interest income over the terms of the related investments using the effective interest method. Fees received in connection with loan commitments are also deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield. Discounts or premiums associated with the purchase of loans are amortized or accreted into interest income as a yield adjustment on the effective interest method based on expected cashflows through the expected maturity date of the related investment. If we purchase a preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount. Anticipated exit fees, whose collection is expected, are also recognized over the term of the loan as an adjustment to yield. | ||||||||
Preferred equity investments are placed on a non-accrual status at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of interest income becomes doubtful. Interest income recognition on any non-accrual preferred equity investment is resumed when such non-accrual preferred equity investment becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received. | ||||||||
We may syndicate a portion of the loans that we originate or sell these loans individually. When a transaction meets the criteria of sale accounting, we derecognize the loan sold and recognize gain or loss based on the difference between the sales price and the carrying value of the loan sold. Any related unamortized deferred origination fees, loan origination costs, discounts or premiums at the time of sale are recognized as an adjustment to the gain or loss on sale, which is included in investment income on the consolidated statement of income. Any fees received at the time of sale or syndication are recognized as part of investment income. | ||||||||
Income Taxes | ||||||||
No provision has been made for income taxes in the accompanying consolidated financial statements since such taxes, if any, are the responsibility of the individual partners. | ||||||||
Reserve for Possible Credit Losses | ||||||||
The expense for possible credit losses in connection with preferred equity investments is the charge to earnings to increase the allowance for possible credit losses to the level that we estimate to be adequate, based on Level 3 data, considering delinquencies, loss experience and collateral quality. Other factors considered relate to geographic trends and product diversification, the size of the portfolio and current economic conditions. Based upon these factors, we establish the provision for possible credit loss on each individual investment. When it is probable that we will be unable to collect all amounts contractually due, the investment is considered impaired. | ||||||||
Where impairment is indicated on an investment that is held to maturity, a valuation allowance is measured based upon the excess of the recorded investment amount over the net fair value of the collateral. Any deficiency between the carrying amount of an asset and the calculated value of the collateral is charged to expense. We continue to assess or adjust our estimates based on circumstances of a loan and the underlying collateral. If the additional information obtained reflects increased recovery of our investment, we will adjust our reserves accordingly. There were no loan reserves recorded during each of the three and nine months ended September 30, 2014 and 2013. | ||||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | ||||||||
Fair Value Measurements | ||||||||
See Note 9, "Fair Value Measurements." | ||||||||
Concentrations of Credit Risk | ||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, preferred equity investments and accounts receivable. We place our cash investments in excess of insured amounts with high quality financial institutions. The collateral securing our preferred equity investments is located in New York City. See Note 5, "Preferred Equity and Other Investments." We perform ongoing credit evaluations of our tenants and require most tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant's lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting a space. Although the properties in our real estate portfolio are primarily located in Manhattan, we also have Suburban properties located in Westchester County and Connecticut. The tenants located in our buildings operate in various industries. Other than two tenants who account for 5.2% and 3.5% of our share of annualized cash rent, respectively, no other tenant in our portfolio accounted for more than 3.3% of our annualized cash rent for the three months ended September 30, 2014. For the three months ended September 30, 2014, 20.6%, 10.2%, 10.2%, 9.2% and 8.7% of our annualized cash rent was attributable to 1185 Avenue of the Americas, 750 Third Avenue, 919 Third Avenue, 1350 Avenue of the Americas, and 810 Seventh Avenue, respectively. | ||||||||
Reclassification | ||||||||
Certain prior year balances have been reclassified to conform to our current year presentation primarily in order to eliminate discontinued operations from income from continuing operations and include the transfer of three properties in 2014. | ||||||||
Accounting Standards Updates | ||||||||
In May 2014, the Financial Accounting Standards Board, or the FASB issued a new comprehensive revenue recognition guidance which requires us to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services (Accounting Standards Update, or ASU, No. 2014-09). The guidance also requires enhanced disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The guidance is effective for annual and interim periods beginning after December 15, 2016 and early adoption is not permitted. The new guidance can be applied either retrospectively to each prior reporting period presented, or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements. | ||||||||
In April 2014, the FASB issued new guidance on reporting discontinued operations which raises the threshold for disposals to qualify as discontinued operations (ASU No. 2014-08). The guidance also allows us to have a significant continuing involvement and continuing cash flows with the discontinued operations. Additionally, the guidance requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. The guidance is effective for calendar year public companies beginning in the first quarter of 2015 and is to be applied on a prospective basis for new disposals. Early adoption of this guidance is permitted. The Company will adopt this standard beginning in the first quarter of 2015. The adoption of this guidance will change the presentation of discontinued operations but will not have a material impact on our consolidated financial statements. |
Property_Acquisitions
Property Acquisitions | 9 Months Ended |
Sep. 30, 2014 | |
Business Combinations [Abstract] | ' |
Property Acquisitions | ' |
Property Acquisitions | |
In September 2014, we acquired the fee interest at 635 Madison Avenue for $153.7 million. We are currently in the process of analyzing the purchase price allocation and, as such, we have not allocated any value to intangible assets. | |
In July 2014, we acquired the retail condominium at 115 Spring Street for $53.1 million. We are currently in the process of analyzing the purchase price allocation and, as such, we have not allocated any value to intangible assets. | |
In November 2013, we acquired a mixed-use residential and commercial property located at 315 West 33rd Street, New York, New York for $386.8 million. Based on our preliminary analysis of the purchase price, we allocated $116.0 million and $270.8 million to land and building, respectively. During the three months ended March 31, 2014, we finalized the purchase price allocation based on a third party appraisal and additional facts and circumstances that existed at the acquisition date and reclassified $33.2 million and $7.8 million to values for above-market and in-place leases and below-market leases, respectively. These adjustments did not have a material impact to our consolidated statement of income for the nine months ended September 30, 2014. |
Property_Dispositions
Property Dispositions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Property Dispositions | ' | ||||||||||||||||
Property Dispositions | |||||||||||||||||
In May 2014, we sold our leasehold interest in 673 First Avenue for $145.0 million and recognized a gain on sale of $117.6 million. | |||||||||||||||||
Discontinued operations included the results of operations of real estate assets under contract or sold prior to September 30, 2014. This included 673 First Avenue, which was sold in May 2014, and 333 West 34th Street, which was sold in August 2013. | |||||||||||||||||
The following table summarizes net income from discontinued operations for the three and nine months ended September 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | |||||||||||||||||
Rental revenue, net | $ | — | $ | 6,137 | $ | 7,853 | $ | 24,122 | |||||||||
Escalation and reimbursement revenues | — | 1,358 | 1,080 | 3,299 | |||||||||||||
Other income | — | 11 | — | 15 | |||||||||||||
Total revenues | — | 7,506 | 8,933 | 27,436 | |||||||||||||
Operating expenses | 58 | 1,414 | 1,222 | 5,730 | |||||||||||||
Real estate taxes | — | 1,167 | 1,402 | 3,558 | |||||||||||||
Ground rent | — | 2,196 | 3,001 | 5,778 | |||||||||||||
Interest expense, net of interest income | — | 645 | 879 | 2,274 | |||||||||||||
Depreciation and amortization | — | 462 | 433 | 4,364 | |||||||||||||
Total expenses | 58 | 5,884 | 6,937 | 21,704 | |||||||||||||
Net (loss) income from discontinued operations | $ | (58 | ) | $ | 1,622 | $ | 1,996 | $ | 5,732 | ||||||||
Preferred_Equity_and_Other_Inv
Preferred Equity and Other Investments | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||
Preferred Equity and Other Investments | ' | ||||||||||||||
Preferred Equity and Other Investments | |||||||||||||||
As of September 30, 2014 and December 31, 2013, we held the following preferred equity investments, with an aggregate weighted average current yield of 9.76% at September 30, 2014 (in thousands): | |||||||||||||||
Type | September 30, 2014 | September 30, 2014 | December 31, 2013 | Initial | |||||||||||
Senior Financing | Carrying value(1) | Carrying value(1) | Mandatory | ||||||||||||
Redemption | |||||||||||||||
Preferred equity(2) | $ | 550,000 | $ | 121,158 | $ | 115,198 | Jul-15 | ||||||||
Preferred equity(2) | 926,260 | 224,720 | 218,330 | Jul-16 | |||||||||||
Preferred equity | 70,000 | 9,950 | 9,940 | Nov-17 | |||||||||||
Preferred equity(3) | — | — | 25,896 | ||||||||||||
$ | 1,546,260 | $ | 355,828 | $ | 369,364 | ||||||||||
__________________________________________________________________ | |||||||||||||||
-1 | Carrying value is net of discounts and deferred origination fees. | ||||||||||||||
-2 | The difference between the pay and accrual rates is included as an addition to the principal balance outstanding. | ||||||||||||||
-3 | This preferred equity investment was redeemed in April 2014. | ||||||||||||||
At September 30, 2014 and December 31, 2013, all preferred equity investments were performing in accordance with the terms of the relevant investments. | |||||||||||||||
In March 2014, we closed on a $40.0 million preferred equity investment, which has a repayment date of March 2016, subject to three one-year extension options and a two-year option for the last extension. As a result of meeting the criteria of a real estate investment under the guidance for ADC arrangements, we have accounted for this wholly owned investment under the equity method of accounting. As of September 30, 2014, the book value of this investment was $40.2 million. | |||||||||||||||
In January 2013, we, along with our joint venture partner, formed a joint venture that held a preferred equity interest in an entity that owns a retail property located in Manhattan. We held a 40.0% interest or $20.0 million initial investment in the joint venture which was accounted for under the equity method of accounting. In December 2013, the preferred equity investment was redeemed and its net proceeds were distributed to us and our joint venture partner. |
Mortgage_Note_and_Other_Loans_
Mortgage Note and Other Loans Payable | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Mortgage Note and Other Loans Payable | ' | ||||||||||||||
Mortgage Note and Other Loans Payable | ' | ||||||||||||||
Mortgage Note and Other Loans Payable | |||||||||||||||
The first mortgage note and other loans payable collateralized by the property, assignment of leases and investments at September 30, 2014 and December 31, 2013 were as follows (amounts in thousands): | |||||||||||||||
Property | Maturity Date | Interest | 30-Sep-14 | 31-Dec-13 | |||||||||||
Rate(1) | |||||||||||||||
(as adjusted) | |||||||||||||||
Other loan payable(2) | Sep-19 | 8 | % | $ | 50,000 | $ | 50,000 | ||||||||
919 Third Avenue(3) | Jun-23 | 5.12 | % | 500,000 | 500,000 | ||||||||||
16 Court Street(4) | — | — | — | 79,243 | |||||||||||
609 Partners, LLC(5) | — | — | — | 23 | |||||||||||
$ | 550,000 | $ | 629,266 | ||||||||||||
______________________________________________________________________ | |||||||||||||||
-1 | Effective weighted average interest rate for the three months ended September 30, 2014. | ||||||||||||||
-2 | This loan is secured by a portion of a preferred equity investment. | ||||||||||||||
-3 | We own a 51.0% controlling interest in the joint venture that is the borrower on this loan. | ||||||||||||||
-4 | In April 2014, we repaid the loan and incurred a loss on early extinguishment of debt of $0.5 million. | ||||||||||||||
-5 | In April 2014, the remaining 22,658 Series E Preferred Units of the Operating Partnership were canceled. | ||||||||||||||
The gross book value of the property and preferred equity investment collateralizing the mortgage note and other loans payable was $1.5 billion and $1.6 billion at September 30, 2014 and December 31, 2013, respectively. |
Corporate_Indebtedness
Corporate Indebtedness | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||
Corporate Indebtedness | ' | |||||||||||||||||||||
Corporate Indebtedness | ||||||||||||||||||||||
2012 Credit Facility | ||||||||||||||||||||||
In March 2014, we entered into an amendment to the $1.6 billion credit facility entered into by the Company in November 2012, or the 2012 credit facility, which, among other things, increased the term loan portion of the 2012 credit facility, or the term loan facility by $383.0 million to $783.0 million, decreased the interest-rate margin applicable to the term loan facility by 25 basis points and extended the maturity of the term loan facility from March 30, 2018 to June 30, 2019. In November 2014, we entered into a further amendment to the 2012 credit facility, which increased the term loan facility by $50.0 million to $833.0 million. The 2012 credit facility, as amended, consists of a $1.2 billion revolving credit facility, or the revolving credit facility, and a $833.0 million term loan facility. The revolving credit facility matures in March 2017 and includes two six-month as-of-right extension options, subject to the payment of an extension fee of 10 basis points for each such extension. We also have an option, subject to customary conditions, without the consent of existing lenders, to increase the capacity under the revolving credit facility to $1.5 billion at any time prior to the maturity date for the revolving credit facility, by obtaining additional commitments from our existing lenders and other financial institutions. | ||||||||||||||||||||||
The 2012 credit facility bears interest at a spread over LIBOR ranging from (i) 100 basis points to 175 basis points for loans under the revolving credit facility and (ii) 95 basis points to 190 basis points for loans under the term loan facility, in each case based on the credit rating assigned to our senior unsecured long term indebtedness. At September 30, 2014, the applicable spread was 145 basis points for the revolving credit facility and 140 basis points for the term loan facility. At September 30, 2014, the effective interest rate was 1.61% for the revolving credit facility and 1.64% for the term loan facility. We are required to pay quarterly in arrears a 15 to 35 basis point facility fee on the total commitments under the revolving credit facility based on the credit rating assigned to our senior unsecured long term indebtedness. As of September 30, 2014, the facility fee was 30 basis points. At September 30, 2014, we had $113.3 million of outstanding letters of credit, $244.0 million drawn under the revolving credit facility and $783.0 million outstanding under the term loan facility, with total undrawn capacity of $0.8 billion under the revolving credit facility. In November 2014, an additional $50.0 million was borrowed under the increased term loan facility described above. | ||||||||||||||||||||||
In connection with the amendment of the 2012 credit facility, we incurred debt origination and other loan costs of $2.8 million. We evaluated the modification pursuant to ASC 470 and determined that the terms of the amendment were not substantially different from the terms of the previous 2012 credit facility. As a result, these deferred costs and the unamortized balance of the costs previously incurred are amortized through the extended maturity date of the term loan facility. | ||||||||||||||||||||||
We, SL Green and the Operating Partnership are all borrowers jointly and severally obligated under the 2012 credit facility. No other subsidiary of SL Green is an obligor under the 2012 credit facility. | ||||||||||||||||||||||
The 2012 credit facility includes certain restrictions and covenants (see Restrictive Covenants below). | ||||||||||||||||||||||
Senior Unsecured Notes | ||||||||||||||||||||||
The following table sets forth our senior unsecured notes and other related disclosures as of September 30, 2014 and December 31, 2013 by scheduled maturity date (amounts in thousands): | ||||||||||||||||||||||
Issuance | September 30, | September 30, | December 31, | Coupon | Effective | Term | Maturity Date | |||||||||||||||
2014 | 2014 | 2013 | Rate(1) | Rate | (in Years) | |||||||||||||||||
Unpaid Principal Balance | Accreted Balance | Accreted Balance | ||||||||||||||||||||
March 31, 2006 | $ | 255,308 | $ | 255,238 | $ | 255,206 | 6 | % | 6 | % | 10 | March 31, 2016 | ||||||||||
August 5, 2011(2) | 250,000 | 249,728 | 249,681 | 5 | % | 5 | % | 7 | August 15, 2018 | |||||||||||||
March 16, 2010(2) | 250,000 | 250,000 | 250,000 | 7.75 | % | 7.75 | % | 10 | March 15, 2020 | |||||||||||||
November 15, 2012(2) | 200,000 | 200,000 | 200,000 | 4.5 | % | 4.5 | % | 10 | December 1, 2022 | |||||||||||||
June 27, 2005(3) | 7 | 7 | 7 | 4 | % | 4 | % | 20 | June 15, 2025 | |||||||||||||
August 13, 2004(4) | — | — | 75,898 | |||||||||||||||||||
$ | 955,315 | $ | 954,973 | $ | 1,030,792 | |||||||||||||||||
______________________________________________________________________ | ||||||||||||||||||||||
-1 | Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates. | |||||||||||||||||||||
-2 | We, SL Green and the Operating Partnership are co-obligors. | |||||||||||||||||||||
-3 | Exchangeable senior debentures which are currently callable at par. In addition, the debentures can be put to us, at the option of the holder at par plus accrued and unpaid interest, on June 15, 2015 and 2020 and upon the occurrence of certain change of control transactions. As a result of the Merger, the adjusted exchange rate for the debentures is 7.7461 shares of SL Green's common stock per $1,000 of principal amount of debentures and the adjusted reference dividend for the debentures is $1.3491. | |||||||||||||||||||||
-4 | In August 2014, these notes were repaid at maturity. | |||||||||||||||||||||
ROP also provides a guaranty of the Operating Partnership's obligations under its 3.00% Exchangeable Senior Notes due 2017. | ||||||||||||||||||||||
Restrictive Covenants | ||||||||||||||||||||||
The terms of the 2012 credit facility, as amended, and certain of our senior unsecured notes include certain restrictions and covenants which may limit, among other things, SL Green's ability to pay dividends, make certain types of investments, incur additional indebtedness, incur liens and enter into negative pledge agreements and dispose of assets, and which require compliance with financial ratios relating to the minimum amount of tangible net worth, a maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value. The dividend restriction referred to above provides that SL Green will not during any time when a default is continuing, make distributions with respect to SL Green's common stock or other equity interests, except to enable SL Green to continue to qualify as a REIT for Federal income tax purposes. As of September 30, 2014, we were in compliance with all such covenants. | ||||||||||||||||||||||
Principal Maturities | ||||||||||||||||||||||
Combined aggregate principal maturities of mortgage note and other loans payable and term loan and senior unsecured notes as of September 30, 2014, including as-of-right extension options, were as follows (in thousands): | ||||||||||||||||||||||
Scheduled | Principal | Revolving Credit Facility | Term Loan | Total | ||||||||||||||||||
Amortization | Repayments | and Senior | ||||||||||||||||||||
Unsecured | ||||||||||||||||||||||
Notes | ||||||||||||||||||||||
Remaining 2014 | $ | — | $ | — | — | $ | — | $ | — | |||||||||||||
2015 | — | — | — | 7 | 7 | |||||||||||||||||
2016 | 3,566 | — | — | 255,308 | 258,874 | |||||||||||||||||
2017 | 7,411 | — | — | — | 7,411 | |||||||||||||||||
2018 | 7,799 | — | 244,000 | 250,000 | 501,799 | |||||||||||||||||
Thereafter | 39,630 | 491,594 | — | 1,233,000 | 1,764,224 | |||||||||||||||||
$ | 58,406 | $ | 491,594 | 244,000 | $ | 1,738,315 | $ | 2,532,315 | ||||||||||||||
Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands): | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
(as adjusted) | (as adjusted) | |||||||||||||||||||||
Interest expense | $ | 27,320 | $ | 28,066 | $ | 80,726 | $ | 81,191 | ||||||||||||||
Interest income | (7 | ) | (1 | ) | (17 | ) | (4 | ) | ||||||||||||||
Interest expense, net of interest income | $ | 27,313 | $ | 28,065 | $ | 80,709 | $ | 81,187 | ||||||||||||||
Interest capitalized | $ | 937 | $ | — | $ | 2,835 | $ | — | ||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
We are required to disclose the fair value information about our financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate fair value. FASB guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. We measure and/or disclose the estimated fair value of financial assets and liabilities based on a hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. This hierarchy consists of three broad levels: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date; Level 2 - inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 - unobservable inputs for the asset or liability that are used when little or no market data is available. We follow this hierarchy for our assets and liabilities measured at fair value on a recurring and nonrecurring basis. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of the particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | ||||||||||||||||
We determine impairment in real estate investments and preferred equity investments, including intangibles utilizing cash flow projections that apply estimated revenue and expense growth rates, discount rates and capitalization rates, which are classified as Level 3 inputs. | ||||||||||||||||
We measure our derivative instruments at fair value on a recurring basis. The fair value of derivative instruments is based on current market data received from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well-recognized financial principles and reasonable estimates about relevant future market conditions, which are classified as Level 2 inputs. | ||||||||||||||||
The financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, preferred equity investments, mortgages and other loans payable and other secured and unsecured debt. The carrying amount of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses reported in our consolidated balance sheets approximates fair value due to the short term nature of these instruments. The fair value of preferred equity investments, which is classified as Level 3, is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings. The fair value of borrowings, which is classified as Level 3, is estimated by discounting the contractual cash flows of each debt to their present value using adjusted market interest rates, which is provided by a third-party specialist. | ||||||||||||||||
The following table provides the carrying value and fair value of these financial instruments as of September 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(as adjusted) | (as adjusted) | |||||||||||||||
Preferred equity investments | $ | 355,828 | -1 | $ | 369,364 | -1 | ||||||||||
Fixed rate debt | $ | 1,534,973 | $ | 1,677,881 | $ | 1,610,815 | $ | 1,714,721 | ||||||||
Variable rate debt | 997,000 | 1,025,320 | 669,243 | 684,871 | ||||||||||||
$ | 2,531,973 | $ | 2,703,201 | $ | 2,280,058 | $ | 2,399,592 | |||||||||
____________________________________ | ||||||||||||||||
-1 | Preferred equity investments had an estimated fair value ranging from $355.8 million to $391.4 million as of September 30, 2014. As of December 31, 2013, preferred equity investments had an estimated fair value of $400.0 million. | |||||||||||||||
Disclosure about fair value of financial instruments was based on pertinent information available to us as of September 30, 2014 and December 31, 2013. Although we are not aware of any factors that would significantly affect the reasonable fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein. |
Partners_Capital
Partners' Capital | 9 Months Ended |
Sep. 30, 2014 | |
Partners' Capital Notes [Abstract] | ' |
Partners' Capital | ' |
Partners' Capital | |
Since January 25, 2007, the Operating Partnership has owned all the economic interests in ROP either by direct ownership or by indirect ownership through our general partner, which is its wholly-owned subsidiary. | |
Intercompany transactions between SL Green and ROP are generally recorded as contributions and distributions. |
Financial_Instruments_Derivati
Financial Instruments: Derivatives and Hedging | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Financial Instruments: Derivatives and Hedging | ' | ||||||||||||||||||||||||||||
Financial Instruments: Derivatives and Hedging | |||||||||||||||||||||||||||||
In the normal course of business, we use a variety of commonly used derivative instruments, such as interest rate swaps, caps, collar and floors, to manage, or hedge interest rate risk. We hedge our exposure to variability in future cash flows for forecasted transactions in addition to anticipated future interest payments on existing debt. We recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value through earnings. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value will be immediately recognized in earnings. Reported net income and capital may increase or decrease prospectively, depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items, but will have no effect on cash flows. Currently, all of our designated derivative instruments are effective hedging instruments. | |||||||||||||||||||||||||||||
As of September 30, 2014, the Company had designated an interest swap agreement on $30.0 million of the 2012 credit facility. The following table summarizes the notional and fair value of our derivative financial instrument at September 30, 2014 based on Level 2 inputs. The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks. | |||||||||||||||||||||||||||||
Notional | Strike | Effective | Expiration | Balance Sheet Location | Fair | ||||||||||||||||||||||||
Value | Rate | Date | Date | Value | |||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||
Interest Rate Swap | $ | 30,000 | 2.295 | % | Jul-10 | Jun-16 | Other Liabilities | $ | 893 | ||||||||||||||||||||
Gains and losses on terminated hedges are included in the accumulated other comprehensive loss, and are recognized into earnings over the remaining term of the related senior unsecured notes. As of September 30, 2014 and December 31, 2013, the deferred net losses from these terminated hedges, which are included in accumulated other comprehensive loss relating to net unrealized loss on derivative instrument, was approximately $2.4 million and $2.7 million, respectively. | |||||||||||||||||||||||||||||
Over time, the realized and unrealized gains and losses held in accumulated other comprehensive loss will be reclassified into earnings as an adjustment to interest expense in the same periods in which the hedged interest payments affect earnings. We estimate that approximately $1.0 million of the current balance held in accumulated other comprehensive loss will be reclassified into interest expense within the next twelve months. | |||||||||||||||||||||||||||||
The following table presents the effect of our derivative financial instruments that are designated and qualify as hedging instruments on the consolidated statements of income for the three months ended September 30, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||
Amount of Gain (Loss) | Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income | Amount of Loss | Location of Gain Recognized in Income on Derivative | Amount of Gain Recognized | |||||||||||||||||||||||||
Recognized in | Reclassified from | into Income | |||||||||||||||||||||||||||
Other Comprehensive | Accumulated Other | (Ineffective Portion) | |||||||||||||||||||||||||||
Loss | Comprehensive Loss into Income | ||||||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||
Derivative | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Interest Rate Swaps | $ | 21 | $ | (149 | ) | Interest expense | $ | 254 | $ | 234 | Interest expense | $ | 1 | $ | 2 | ||||||||||||||
The following table presents the effect of our derivative financial instruments that are designated and qualify as hedging instruments on the consolidated statements of income for the nine months ended September 30, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||
Amount of Gain (Loss) | Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income | Amount of Loss | Location of Gain Recognized in Income on Derivative | Amount of Gain | |||||||||||||||||||||||||
Recognized in | Reclassified from | Recognized | |||||||||||||||||||||||||||
Other Comprehensive | Accumulated Other | into Income | |||||||||||||||||||||||||||
Loss | Comprehensive Loss into Income | (Ineffective Portion) | |||||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | ||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||||||||
Derivative | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Interest Rate Swaps | $ | (88 | ) | $ | 44 | Interest expense | $ | 756 | $ | 711 | Interest expense | $ | 3 | $ | 2 | ||||||||||||||
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
Cleaning/ Security/ Messenger and Restoration Services | |
Through Alliance Building Services, or Alliance, First Quality Maintenance, L.P., or First Quality, provides cleaning, extermination and related services, Classic Security LLC provides security services, Bright Star Couriers LLC provides messenger services, and Onyx Restoration Works provides restoration services with respect to certain properties owned by us. Alliance is partially owned by Gary Green, a son of Stephen L. Green, the chairman of SL Green's board of directors. In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services. An affiliate of ours has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements. Our affiliate earned $0.8 million, $2.4 million, $0.7 million and $2.3 million from profit participation for the three and nine months ended September 30, 2014 and 2013, respectively. We recorded expenses of $1.8 million, $4.5 million, $1.9 million and $4.9 million for the three and nine months ended September 30, 2014 and 2013, respectively, for these services (excluding services provided directly to tenants). | |
Allocated Expenses from SL Green | |
Property operating expenses include an allocation of salary and other operating costs from SL Green based on square footage of the related properties. Allocated expenses were $2.0 million, $5.8 million, $1.8 million and $5.2 million for the three and nine months ended September 30, 2014 and 2013, respectively. | |
Insurance | |
We obtained a portion of our insurance coverage through an insurance program administered by SL Green. In connection with this program we incurred insurance expense of $1.3 million, $3.9 million, $1.3 million and $3.7 million for the three and nine months ended September 30, 2014 and 2013, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
Commitments and Contingencies | |||||
Legal Proceedings | |||||
We are not presently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us or our properties which could have a material adverse effect on us. | |||||
Environmental Matters | |||||
Our management believes that the properties are in compliance in all material respects with applicable Federal, state and local ordinances and regulations regarding environmental issues. Management is not aware of any environmental liability that it believes would have a materially adverse impact on our financial position, results of operations or cash flows. Management is unaware of any instances in which it would incur significant environmental cost if any of our properties were sold. | |||||
Ground Leases Arrangements | |||||
The following is a schedule of future minimum lease payments under noncancellable operating leases with initial terms in excess of one year as of September 30, 2014 (in thousands): | |||||
Non-cancellable | |||||
operating leases | |||||
Remaining 2014 | $ | 3,144 | |||
2015 | 10,474 | ||||
2016 | 10,474 | ||||
2017 | 10,474 | ||||
2018 | 10,474 | ||||
Thereafter | 272,906 | ||||
Total minimum lease payments | $ | 317,946 | |||
Segment_Information
Segment Information | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Information | ' | |||||||||||
Segment Information | ||||||||||||
We are engaged in acquiring, owning, managing and leasing commercial properties in Manhattan, Westchester County, New Jersey and Connecticut and have two reportable segments, real estate and preferred equity investments. We evaluate real estate performance and allocate resources based on earnings contribution to income from continuing operations. | ||||||||||||
The primary sources of revenue from our real estate portfolio are generated from tenant rents, escalations and reimbursement revenue. Real estate property operating expenses consist primarily of security, maintenance, utility costs, real estate taxes and ground rent expense (at certain applicable properties). See Note 5, "Preferred Equity and Other Investments," for additional details on our preferred equity investments. | ||||||||||||
Selected results of operations for the three and nine months ended September 30, 2014 and 2013, and selected asset information as of September 30, 2014 and December 31, 2013, regarding our operating segments are as follows (in thousands): | ||||||||||||
Real Estate | Preferred | Total | ||||||||||
Segment | Equity and Other Investments | Company | ||||||||||
Segment | ||||||||||||
Total revenues: | ||||||||||||
Three months ended: | ||||||||||||
30-Sep-14 | $ | 141,511 | $ | 8,702 | $ | 150,213 | ||||||
September 30, 2013, as adjusted | 132,026 | 9,424 | 141,450 | |||||||||
Nine months ended: | ||||||||||||
30-Sep-14 | $ | 415,308 | $ | 26,754 | $ | 442,062 | ||||||
September 30, 2013, as adjusted | 388,545 | 28,620 | 417,165 | |||||||||
Income from continuing operations: | ||||||||||||
Three months ended: | ||||||||||||
30-Sep-14 | $ | 7,017 | $ | 7,958 | $ | 14,975 | ||||||
September 30, 2013, as adjusted | 7,490 | 8,182 | 15,672 | |||||||||
Nine months ended: | ||||||||||||
30-Sep-14 | $ | 17,866 | $ | 23,644 | $ | 41,510 | ||||||
September 30, 2013, as adjusted | 27,760 | 24,636 | 52,396 | |||||||||
Total assets | ||||||||||||
As of: | ||||||||||||
30-Sep-14 | $ | 5,619,268 | $ | 397,417 | $ | 6,016,685 | ||||||
December 31, 2013, as adjusted | 5,517,588 | 370,532 | 5,888,120 | |||||||||
Income from continuing operations represents total revenues less total expenses for the real estate segment and total investment income and equity in net income from unconsolidated joint venture less allocated interest expense for the preferred equity and other investments segment. Interest costs for the preferred equity segment are imputed assuming 100% leverage at our 2012 credit facility borrowing cost. We also allocate loan loss reserves, net of recoveries, and transaction related costs to the preferred equity and other investments segment. We do not allocate marketing, general and administrative expenses to the preferred equity and other investments segment, since we base performance on the individual segments prior to allocating marketing, general and administrative expenses. All other expenses, except interest, relate entirely to the real estate assets. There were no transactions between the above two segments. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
In November 2014, we entered into an amendment to the 2012 credit facility which increased the term loan facility by $50.0 million to $833.0 million. That additional $50.0 million was borrowed in November 2014. See Note 7, "Corporate Indebtedness." |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include our accounts and those of our subsidiaries, which are wholly-owned or controlled by us. Entities which we do not control through our voting interest and entities which are variable interest entities, but where we are not the primary beneficiary, are accounted for under the equity method or as preferred equity investments. See Note 5, "Preferred Equity and Other Investments." ROP's investments in majority-owned and controlled real estate joint ventures are reflected in the financial statements on a consolidated basis with a reduction for the noncontrolling partners' interests. All significant intercompany balances and transactions have been eliminated. | |
We consolidate a variable interest entity, or VIE, in which we are considered the primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. | |
A noncontrolling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to us. Noncontrolling interests are required to be presented as a separate component of capital in the consolidated balance sheet and the presentation of net income was modified to present earnings and other comprehensive income attributed to controlling and noncontrolling interests. | |
We assess the accounting treatment for each joint venture and preferred equity investment. This assessment includes a review of each joint venture or limited liability company agreement to determine which party has what rights and whether those rights are protective or participating. For all VIEs, we review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity's economic performance. In situations where we and our partner approve, among other things, the annual budget, receive a detailed monthly reporting package from us, meet on a quarterly basis to review the results of the joint venture, review and approve the joint venture's tax return before filing, and approve all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights that result in shared power of the activities that most significantly impact the performance of our joint venture. Our joint venture agreements typically contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan. | |
Investment in Commercial Real Estate Properties | ' |
Investment in Commercial Real Estate Properties | |
On a periodic basis, we assess whether there are any indications that the value of our real estate properties may be impaired or that their carrying value may not be recoverable. A property's value is considered impaired if management's estimate of the aggregate future cash flows (undiscounted and without interest charges for consolidated properties) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property. We also evaluate our real estate properties for potential impairment when a real estate property has been classified as held for sale. Real estate assets held for sale are valued at the lower of their carrying value or fair value less costs to sell. We do not believe that the values of any of our consolidated properties were impaired at September 30, 2014. | |
We allocate the purchase price of real estate to land and building (inclusive of tenant improvements) and, if determined to be material, intangibles, such as the value of above- and below-market leases and origination costs associated with the in-place leases. We depreciate the amount allocated to building (inclusive of tenant improvements) over their estimated useful lives, which generally range from three to 40 years. We amortize the amount allocated to the above- and below-market leases over the remaining term of the associated lease, which generally range from one to 14 years, and record it as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income. We amortize the amount allocated to the values associated with in-place leases over the expected term of the associated lease, which generally range from one to 14 years. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date). We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property. To the extent acquired leases contain fixed rate renewal options that are below-market and determined to be material, we amortize such below-market lease value into rental income over the renewal period. | |
Investments in Unconsolidated Joint Ventures | ' |
Investments in Unconsolidated Joint Ventures | |
We may originate loans for real estate acquisition, development and construction, or ADC arrangements, where we expect to receive some or all of the residual profit. When the risk and rewards of these ADC arrangements are essentially the same as an investor or joint venture partner, we account for these ADC arrangements as real estate investments under the equity method of accounting for investments, which is included in preferred equity and other investments on the consolidated balance sheets. Otherwise, we account for these ADC arrangements consistent with our loan accounting for our debt and preferred equity investments. | |
Revenue Recognition | ' |
Revenue Recognition | |
Rental revenue is recognized on a straight-line basis over the term of the lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space. In order for the tenant to take possession, the leased space must be substantially ready for its intended use. To determine whether the leased space is substantially ready for its intended use, management evaluates whether we are or the tenant is the owner of tenant improvements for accounting purposes. When management concludes that we are the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of the finished space, which is when such tenant improvements are substantially complete. In certain instances, when management concludes that we are not the owner (the tenant is the owner) of tenant improvements, rental revenue recognition begins when the tenant takes possession of or controls the space. When management concludes that we are the owner of tenant improvements for accounting purposes, we record amounts funded to construct the tenant improvements as a capital asset. For these tenant improvements, we record amounts reimbursed by tenants as a reduction of the capital asset. When management concludes that the tenant is the owner of tenant improvements for accounting purposes, we record our contribution towards those improvements as a lease incentive, which is included in deferred costs, net on our consolidated balance sheets and amortized as a reduction to rental revenue on a straight-line basis over the term of the lease. The excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rents receivable on the consolidated balance sheets. We establish, on a current basis, an allowance for future potential tenant credit losses, which may occur against this account. The balance reflected on the consolidated balance sheets is net of such allowance. | |
In addition to base rent, our tenants also generally will pay their pro rata share of increases in real estate taxes and operating expenses for the building over a base year. In some leases, in lieu of paying additional rent based upon increases in building operating expenses, the tenant will pay additional rent based upon increases in the wage rate paid to porters over the porters' wage rate in effect during a base year or increases in the consumer price index over the index value in effect during a base year. In addition, many of our leases contain fixed percentage increases over the base rent to cover escalations. Electricity is most often supplied by the landlord either on a sub-metered basis, or rent inclusion basis (i.e., a fixed fee is included in the rent for electricity, which amount may increase based upon increases in electricity rates or increases in electrical usage by the tenant). Base building services other than electricity (such as heat, air conditioning and freight elevator service during business hours, and base building cleaning) are typically provided at no additional cost, with the tenant paying additional rent only for services which exceed base building services or for services which are provided outside normal business hours. These escalations are based on actual expenses incurred in the prior calendar year. If the expenses in the current year are different from those in the prior year, then during the current year, the escalations will be adjusted to reflect the actual expenses for the current year. | |
We record a gain on sale of real estate when title is conveyed to the buyer, subject to the buyer's financial commitment being sufficient to provide economic substance to the sale and we have no substantial economic involvement with the buyer. | |
Interest income on preferred equity investments is accrued based on the outstanding principal amount and contractual terms of the instruments and when, in the opinion of management, it is deemed collectible. Some of the preferred equity investments provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest are ultimately collectible, based on the underlying collateral and operations of the borrower. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt. | |
Deferred origination fees, original issue discounts and loan origination costs, if any, are recognized as a reduction to the interest income over the terms of the related investments using the effective interest method. Fees received in connection with loan commitments are also deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield. Discounts or premiums associated with the purchase of loans are amortized or accreted into interest income as a yield adjustment on the effective interest method based on expected cashflows through the expected maturity date of the related investment. If we purchase a preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount into income as an adjustment to yield over the term of the investment. If we purchase a preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount. Anticipated exit fees, whose collection is expected, are also recognized over the term of the loan as an adjustment to yield. | |
Preferred equity investments are placed on a non-accrual status at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of interest income becomes doubtful. Interest income recognition on any non-accrual preferred equity investment is resumed when such non-accrual preferred equity investment becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received. | |
We may syndicate a portion of the loans that we originate or sell these loans individually. When a transaction meets the criteria of sale accounting, we derecognize the loan sold and recognize gain or loss based on the difference between the sales price and the carrying value of the loan sold. Any related unamortized deferred origination fees, loan origination costs, discounts or premiums at the time of sale are recognized as an adjustment to the gain or loss on sale, which is included in investment income on the consolidated statement of income. Any fees received at the time of sale or syndication are recognized as part of investment income. | |
Reserve for Possible Credit Losses | ' |
Reserve for Possible Credit Losses | |
The expense for possible credit losses in connection with preferred equity investments is the charge to earnings to increase the allowance for possible credit losses to the level that we estimate to be adequate, based on Level 3 data, considering delinquencies, loss experience and collateral quality. Other factors considered relate to geographic trends and product diversification, the size of the portfolio and current economic conditions. Based upon these factors, we establish the provision for possible credit loss on each individual investment. When it is probable that we will be unable to collect all amounts contractually due, the investment is considered impaired. | |
Where impairment is indicated on an investment that is held to maturity, a valuation allowance is measured based upon the excess of the recorded investment amount over the net fair value of the collateral. Any deficiency between the carrying amount of an asset and the calculated value of the collateral is charged to expense. We continue to assess or adjust our estimates based on circumstances of a loan and the underlying collateral. If the additional information obtained reflects increased recovery of our investment, we will adjust our reserves accordingly. There were no loan reserves recorded during each of the three and nine months ended September 30, 2014 and 2013. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |
Concentrations of Credit Risk | ' |
Concentrations of Credit Risk | |
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, preferred equity investments and accounts receivable. We place our cash investments in excess of insured amounts with high quality financial institutions. The collateral securing our preferred equity investments is located in New York City. See Note 5, "Preferred Equity and Other Investments." We perform ongoing credit evaluations of our tenants and require most tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant's lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting a space. Although the properties in our real estate portfolio are primarily located in Manhattan, we also have Suburban properties located in Westchester County and Connecticut. The tenants located in our buildings operate in various industries. | |
Reclassification | ' |
Reclassification | |
Certain prior year balances have been reclassified to conform to our current year presentation primarily in order to eliminate discontinued operations from income from continuing operations and include the transfer of three properties in 2014. | |
Accounting Standards Updates | ' |
Accounting Standards Updates | |
In May 2014, the Financial Accounting Standards Board, or the FASB issued a new comprehensive revenue recognition guidance which requires us to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services (Accounting Standards Update, or ASU, No. 2014-09). The guidance also requires enhanced disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The guidance is effective for annual and interim periods beginning after December 15, 2016 and early adoption is not permitted. The new guidance can be applied either retrospectively to each prior reporting period presented, or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements. | |
In April 2014, the FASB issued new guidance on reporting discontinued operations which raises the threshold for disposals to qualify as discontinued operations (ASU No. 2014-08). The guidance also allows us to have a significant continuing involvement and continuing cash flows with the discontinued operations. Additionally, the guidance requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. The guidance is effective for calendar year public companies beginning in the first quarter of 2015 and is to be applied on a prospective basis for new disposals. Early adoption of this guidance is permitted. The Company will adopt this standard beginning in the first quarter of 2015. The adoption of this guidance will change the presentation of discontinued operations but will not have a material impact on our consolidated financial statements. | |
Fair Value Measurements | ' |
Fair Value Measurements | |
We are required to disclose the fair value information about our financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate fair value. FASB guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. We measure and/or disclose the estimated fair value of financial assets and liabilities based on a hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. This hierarchy consists of three broad levels: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date; Level 2 - inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 - unobservable inputs for the asset or liability that are used when little or no market data is available. We follow this hierarchy for our assets and liabilities measured at fair value on a recurring and nonrecurring basis. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of the particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | |
We determine impairment in real estate investments and preferred equity investments, including intangibles utilizing cash flow projections that apply estimated revenue and expense growth rates, discount rates and capitalization rates, which are classified as Level 3 inputs. | |
We measure our derivative instruments at fair value on a recurring basis. The fair value of derivative instruments is based on current market data received from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well-recognized financial principles and reasonable estimates about relevant future market conditions, which are classified as Level 2 inputs. | |
The financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, preferred equity investments, mortgages and other loans payable and other secured and unsecured debt. The carrying amount of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses reported in our consolidated balance sheets approximates fair value due to the short term nature of these instruments. The fair value of preferred equity investments, which is classified as Level 3, is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings. The fair value of borrowings, which is classified as Level 3, is estimated by discounting the contractual cash flows of each debt to their present value using adjusted market interest rates, which is provided by a third-party specialist. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Measurements | ' |
Fair Value Measurements | |
We are required to disclose the fair value information about our financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate fair value. FASB guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. We measure and/or disclose the estimated fair value of financial assets and liabilities based on a hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. This hierarchy consists of three broad levels: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date; Level 2 - inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 - unobservable inputs for the asset or liability that are used when little or no market data is available. We follow this hierarchy for our assets and liabilities measured at fair value on a recurring and nonrecurring basis. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of the particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | |
We determine impairment in real estate investments and preferred equity investments, including intangibles utilizing cash flow projections that apply estimated revenue and expense growth rates, discount rates and capitalization rates, which are classified as Level 3 inputs. | |
We measure our derivative instruments at fair value on a recurring basis. The fair value of derivative instruments is based on current market data received from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well-recognized financial principles and reasonable estimates about relevant future market conditions, which are classified as Level 2 inputs. | |
The financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, preferred equity investments, mortgages and other loans payable and other secured and unsecured debt. The carrying amount of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses reported in our consolidated balance sheets approximates fair value due to the short term nature of these instruments. The fair value of preferred equity investments, which is classified as Level 3, is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings. The fair value of borrowings, which is classified as Level 3, is estimated by discounting the contractual cash flows of each debt to their present value using adjusted market interest rates, which is provided by a third-party specialist. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Schedule of commercial office properties | ' | ||||||||||||
Our investments in the New York Metropolitan area also include investments in Westchester County and Connecticut, which are collectively known as the Suburban properties: | |||||||||||||
Location | Type | Number of | Square Feet | Weighted Average Occupancy(1) | |||||||||
Properties | |||||||||||||
Commercial: | |||||||||||||
Manhattan | Office | 11 | 6,444,400 | 94.1 | % | ||||||||
Retail | 3 | (2) | 343,692 | 98.4 | % | ||||||||
Development/Redevelopment | 1 | 104,000 | 72.5 | % | |||||||||
Fee Interest | 1 | 176,530 | 100 | % | |||||||||
16 | 7,068,622 | 94.2 | % | ||||||||||
Suburban | Office | 20 | 3,417,900 | 80.2 | % | ||||||||
Total commercial properties | 36 | 10,486,522 | 89.6 | % | |||||||||
Residential: | |||||||||||||
Manhattan | Residential | — | (2) | 222,855 | 96.1 | % | |||||||
Total portfolio | 36 | 10,709,377 | 89.8 | % | |||||||||
______________________________________________________________________ | |||||||||||||
-1 | The weighted average occupancy for commercial properties represents the total occupied square feet divided by total available rentable square feet. The weighted average occupancy for residential properties represents the total occupied units divided by total available units. | ||||||||||||
-2 | As of September 30, 2014, we owned a building that was comprised of 270,132 square feet of retail space and 222,855 square feet of residential space. For the purpose of this report, we have included the building as part of retail properties and have shown the square footage under its respective classifications. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Summary of identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) | ' | |||||||
The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of September 30, 2014 and December 31, 2013 (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
(as adjusted) | ||||||||
Identified intangible assets (included in other assets): | ||||||||
Gross amount | $ | 254,824 | $ | 221,615 | ||||
Accumulated amortization | (173,726 | ) | (147,069 | ) | ||||
Net | $ | 81,098 | $ | 74,546 | ||||
Identified intangible liabilities (included in deferred revenue): | ||||||||
Gross amount | $ | 428,100 | $ | 420,261 | ||||
Accumulated amortization | (295,849 | ) | (268,375 | ) | ||||
Net | $ | 132,251 | $ | 151,886 | ||||
Property_Dispositions_Tables
Property Dispositions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Schedule of income from discontinued operations | ' | ||||||||||||||||
The following table summarizes net income from discontinued operations for the three and nine months ended September 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | |||||||||||||||||
Rental revenue, net | $ | — | $ | 6,137 | $ | 7,853 | $ | 24,122 | |||||||||
Escalation and reimbursement revenues | — | 1,358 | 1,080 | 3,299 | |||||||||||||
Other income | — | 11 | — | 15 | |||||||||||||
Total revenues | — | 7,506 | 8,933 | 27,436 | |||||||||||||
Operating expenses | 58 | 1,414 | 1,222 | 5,730 | |||||||||||||
Real estate taxes | — | 1,167 | 1,402 | 3,558 | |||||||||||||
Ground rent | — | 2,196 | 3,001 | 5,778 | |||||||||||||
Interest expense, net of interest income | — | 645 | 879 | 2,274 | |||||||||||||
Depreciation and amortization | — | 462 | 433 | 4,364 | |||||||||||||
Total expenses | 58 | 5,884 | 6,937 | 21,704 | |||||||||||||
Net (loss) income from discontinued operations | $ | (58 | ) | $ | 1,622 | $ | 1,996 | $ | 5,732 | ||||||||
Preferred_Equity_and_Other_Inv1
Preferred Equity and Other Investments (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||
Schedule of preferred equity investments | ' | ||||||||||||||
As of September 30, 2014 and December 31, 2013, we held the following preferred equity investments, with an aggregate weighted average current yield of 9.76% at September 30, 2014 (in thousands): | |||||||||||||||
Type | September 30, 2014 | September 30, 2014 | December 31, 2013 | Initial | |||||||||||
Senior Financing | Carrying value(1) | Carrying value(1) | Mandatory | ||||||||||||
Redemption | |||||||||||||||
Preferred equity(2) | $ | 550,000 | $ | 121,158 | $ | 115,198 | Jul-15 | ||||||||
Preferred equity(2) | 926,260 | 224,720 | 218,330 | Jul-16 | |||||||||||
Preferred equity | 70,000 | 9,950 | 9,940 | Nov-17 | |||||||||||
Preferred equity(3) | — | — | 25,896 | ||||||||||||
$ | 1,546,260 | $ | 355,828 | $ | 369,364 | ||||||||||
__________________________________________________________________ | |||||||||||||||
-1 | Carrying value is net of discounts and deferred origination fees. | ||||||||||||||
-2 | The difference between the pay and accrual rates is included as an addition to the principal balance outstanding. | ||||||||||||||
-3 | This preferred equity investment was redeemed in April 2014. |
Mortgage_Note_and_Other_Loans_1
Mortgage Note and Other Loans Payable (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Mortgage Note and Other Loans Payable | ' | ||||||||||||||
Schedule of the first mortgage note and other loans payable collateralized by the property, assignment of leases and investment | ' | ||||||||||||||
The first mortgage note and other loans payable collateralized by the property, assignment of leases and investments at September 30, 2014 and December 31, 2013 were as follows (amounts in thousands): | |||||||||||||||
Property | Maturity Date | Interest | 30-Sep-14 | 31-Dec-13 | |||||||||||
Rate(1) | |||||||||||||||
(as adjusted) | |||||||||||||||
Other loan payable(2) | Sep-19 | 8 | % | $ | 50,000 | $ | 50,000 | ||||||||
919 Third Avenue(3) | Jun-23 | 5.12 | % | 500,000 | 500,000 | ||||||||||
16 Court Street(4) | — | — | — | 79,243 | |||||||||||
609 Partners, LLC(5) | — | — | — | 23 | |||||||||||
$ | 550,000 | $ | 629,266 | ||||||||||||
______________________________________________________________________ | |||||||||||||||
-1 | Effective weighted average interest rate for the three months ended September 30, 2014. | ||||||||||||||
-2 | This loan is secured by a portion of a preferred equity investment. | ||||||||||||||
-3 | We own a 51.0% controlling interest in the joint venture that is the borrower on this loan. | ||||||||||||||
-4 | In April 2014, we repaid the loan and incurred a loss on early extinguishment of debt of $0.5 million. | ||||||||||||||
-5 | In April 2014, the remaining 22,658 Series E Preferred Units of the Operating Partnership were canceled. |
Corporate_Indebtedness_Tables
Corporate Indebtedness (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||
Schedule of senior unsecured notes and other related disclosures by scheduled maturity date | ' | |||||||||||||||||||||
The following table sets forth our senior unsecured notes and other related disclosures as of September 30, 2014 and December 31, 2013 by scheduled maturity date (amounts in thousands): | ||||||||||||||||||||||
Issuance | September 30, | September 30, | December 31, | Coupon | Effective | Term | Maturity Date | |||||||||||||||
2014 | 2014 | 2013 | Rate(1) | Rate | (in Years) | |||||||||||||||||
Unpaid Principal Balance | Accreted Balance | Accreted Balance | ||||||||||||||||||||
March 31, 2006 | $ | 255,308 | $ | 255,238 | $ | 255,206 | 6 | % | 6 | % | 10 | March 31, 2016 | ||||||||||
August 5, 2011(2) | 250,000 | 249,728 | 249,681 | 5 | % | 5 | % | 7 | August 15, 2018 | |||||||||||||
March 16, 2010(2) | 250,000 | 250,000 | 250,000 | 7.75 | % | 7.75 | % | 10 | March 15, 2020 | |||||||||||||
November 15, 2012(2) | 200,000 | 200,000 | 200,000 | 4.5 | % | 4.5 | % | 10 | December 1, 2022 | |||||||||||||
June 27, 2005(3) | 7 | 7 | 7 | 4 | % | 4 | % | 20 | June 15, 2025 | |||||||||||||
August 13, 2004(4) | — | — | 75,898 | |||||||||||||||||||
$ | 955,315 | $ | 954,973 | $ | 1,030,792 | |||||||||||||||||
______________________________________________________________________ | ||||||||||||||||||||||
-1 | Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates. | |||||||||||||||||||||
-2 | We, SL Green and the Operating Partnership are co-obligors. | |||||||||||||||||||||
-3 | Exchangeable senior debentures which are currently callable at par. In addition, the debentures can be put to us, at the option of the holder at par plus accrued and unpaid interest, on June 15, 2015 and 2020 and upon the occurrence of certain change of control transactions. As a result of the Merger, the adjusted exchange rate for the debentures is 7.7461 shares of SL Green's common stock per $1,000 of principal amount of debentures and the adjusted reference dividend for the debentures is $1.3491. | |||||||||||||||||||||
-4 | In August 2014, these notes were repaid at maturity. | |||||||||||||||||||||
Schedule of Combined aggregate principal maturities of mortgage and other loans payable, 2012 credit facility and senior unsecured notes, including as-of-right extension options | ' | |||||||||||||||||||||
Combined aggregate principal maturities of mortgage note and other loans payable and term loan and senior unsecured notes as of September 30, 2014, including as-of-right extension options, were as follows (in thousands): | ||||||||||||||||||||||
Scheduled | Principal | Revolving Credit Facility | Term Loan | Total | ||||||||||||||||||
Amortization | Repayments | and Senior | ||||||||||||||||||||
Unsecured | ||||||||||||||||||||||
Notes | ||||||||||||||||||||||
Remaining 2014 | $ | — | $ | — | — | $ | — | $ | — | |||||||||||||
2015 | — | — | — | 7 | 7 | |||||||||||||||||
2016 | 3,566 | — | — | 255,308 | 258,874 | |||||||||||||||||
2017 | 7,411 | — | — | — | 7,411 | |||||||||||||||||
2018 | 7,799 | — | 244,000 | 250,000 | 501,799 | |||||||||||||||||
Thereafter | 39,630 | 491,594 | — | 1,233,000 | 1,764,224 | |||||||||||||||||
$ | 58,406 | $ | 491,594 | 244,000 | $ | 1,738,315 | $ | 2,532,315 | ||||||||||||||
Schedule of Consolidated Interest expense, excluding capitalized interest | ' | |||||||||||||||||||||
Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands): | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
(as adjusted) | (as adjusted) | |||||||||||||||||||||
Interest expense | $ | 27,320 | $ | 28,066 | $ | 80,726 | $ | 81,191 | ||||||||||||||
Interest income | (7 | ) | (1 | ) | (17 | ) | (4 | ) | ||||||||||||||
Interest expense, net of interest income | $ | 27,313 | $ | 28,065 | $ | 80,709 | $ | 81,187 | ||||||||||||||
Interest capitalized | $ | 937 | $ | — | $ | 2,835 | $ | — | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value, by Balance Sheet Grouping | ' | |||||||||||||||
The following table provides the carrying value and fair value of these financial instruments as of September 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(as adjusted) | (as adjusted) | |||||||||||||||
Preferred equity investments | $ | 355,828 | -1 | $ | 369,364 | -1 | ||||||||||
Fixed rate debt | $ | 1,534,973 | $ | 1,677,881 | $ | 1,610,815 | $ | 1,714,721 | ||||||||
Variable rate debt | 997,000 | 1,025,320 | 669,243 | 684,871 | ||||||||||||
$ | 2,531,973 | $ | 2,703,201 | $ | 2,280,058 | $ | 2,399,592 | |||||||||
____________________________________ | ||||||||||||||||
-1 | Preferred equity investments had an estimated fair value ranging from $355.8 million to $391.4 million as of September 30, 2014. As of December 31, 2013, preferred equity investments had an estimated fair value of $400.0 million. |
Financial_Instruments_Derivati1
Financial Instruments: Derivatives and Hedging (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of notional and fair value of derivative financial instruments and foreign currency hedges | ' | ||||||||||||||||||||||||||||
The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks. | |||||||||||||||||||||||||||||
Notional | Strike | Effective | Expiration | Balance Sheet Location | Fair | ||||||||||||||||||||||||
Value | Rate | Date | Date | Value | |||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||
Interest Rate Swap | $ | 30,000 | 2.295 | % | Jul-10 | Jun-16 | Other Liabilities | $ | 893 | ||||||||||||||||||||
Schedule of effect of derivative financial instruments on consolidated statements of income | ' | ||||||||||||||||||||||||||||
The following table presents the effect of our derivative financial instruments that are designated and qualify as hedging instruments on the consolidated statements of income for the three months ended September 30, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||
Amount of Gain (Loss) | Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income | Amount of Loss | Location of Gain Recognized in Income on Derivative | Amount of Gain Recognized | |||||||||||||||||||||||||
Recognized in | Reclassified from | into Income | |||||||||||||||||||||||||||
Other Comprehensive | Accumulated Other | (Ineffective Portion) | |||||||||||||||||||||||||||
Loss | Comprehensive Loss into Income | ||||||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||
Derivative | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Interest Rate Swaps | $ | 21 | $ | (149 | ) | Interest expense | $ | 254 | $ | 234 | Interest expense | $ | 1 | $ | 2 | ||||||||||||||
The following table presents the effect of our derivative financial instruments that are designated and qualify as hedging instruments on the consolidated statements of income for the nine months ended September 30, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||
Amount of Gain (Loss) | Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income | Amount of Loss | Location of Gain Recognized in Income on Derivative | Amount of Gain | |||||||||||||||||||||||||
Recognized in | Reclassified from | Recognized | |||||||||||||||||||||||||||
Other Comprehensive | Accumulated Other | into Income | |||||||||||||||||||||||||||
Loss | Comprehensive Loss into Income | (Ineffective Portion) | |||||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | ||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||||||||
Derivative | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Interest Rate Swaps | $ | (88 | ) | $ | 44 | Interest expense | $ | 756 | $ | 711 | Interest expense | $ | 3 | $ | 2 | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of future minimum lease payments under capital leases and noncancellable operating leases | ' | ||||
The following is a schedule of future minimum lease payments under noncancellable operating leases with initial terms in excess of one year as of September 30, 2014 (in thousands): | |||||
Non-cancellable | |||||
operating leases | |||||
Remaining 2014 | $ | 3,144 | |||
2015 | 10,474 | ||||
2016 | 10,474 | ||||
2017 | 10,474 | ||||
2018 | 10,474 | ||||
Thereafter | 272,906 | ||||
Total minimum lease payments | $ | 317,946 | |||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Schedule of Selected results of operations and selected asset information | ' | |||||||||||
Selected results of operations for the three and nine months ended September 30, 2014 and 2013, and selected asset information as of September 30, 2014 and December 31, 2013, regarding our operating segments are as follows (in thousands): | ||||||||||||
Real Estate | Preferred | Total | ||||||||||
Segment | Equity and Other Investments | Company | ||||||||||
Segment | ||||||||||||
Total revenues: | ||||||||||||
Three months ended: | ||||||||||||
30-Sep-14 | $ | 141,511 | $ | 8,702 | $ | 150,213 | ||||||
September 30, 2013, as adjusted | 132,026 | 9,424 | 141,450 | |||||||||
Nine months ended: | ||||||||||||
30-Sep-14 | $ | 415,308 | $ | 26,754 | $ | 442,062 | ||||||
September 30, 2013, as adjusted | 388,545 | 28,620 | 417,165 | |||||||||
Income from continuing operations: | ||||||||||||
Three months ended: | ||||||||||||
30-Sep-14 | $ | 7,017 | $ | 7,958 | $ | 14,975 | ||||||
September 30, 2013, as adjusted | 7,490 | 8,182 | 15,672 | |||||||||
Nine months ended: | ||||||||||||
30-Sep-14 | $ | 17,866 | $ | 23,644 | $ | 41,510 | ||||||
September 30, 2013, as adjusted | 27,760 | 24,636 | 52,396 | |||||||||
Total assets | ||||||||||||
As of: | ||||||||||||
30-Sep-14 | $ | 5,619,268 | $ | 397,417 | $ | 6,016,685 | ||||||
December 31, 2013, as adjusted | 5,517,588 | 370,532 | 5,888,120 | |||||||||
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | 31-May-14 | |
sqft | |||
property | |||
Real estate properties | ' | ' | |
SL Green ownership in the Operating Partnership | 96.25% | ' | |
Carrying value of properties transferred | $195.40 | $98.70 | |
Number of Properties | 36 | ' | |
Square Feet (sqft) | 10,709,377 | ' | |
Weighted Average Occupancy | 89.80% | [1] | ' |
Preferred equity investments | 355.8 | ' | |
Equity method investment | $40.20 | ' | |
Commercial Property | ' | ' | |
Real estate properties | ' | ' | |
Number of Properties | 36 | ' | |
Square Feet (sqft) | 10,486,522 | ' | |
Weighted Average Occupancy | 89.60% | [1] | ' |
Retail Portion | ' | ' | |
Real estate properties | ' | ' | |
Square Feet (sqft) | 270,132 | ' | |
Residential Portion | ' | ' | |
Real estate properties | ' | ' | |
Square Feet (sqft) | 222,855 | ' | |
Manhattan | Commercial Property | ' | ' | |
Real estate properties | ' | ' | |
Number of Properties | 16 | ' | |
Square Feet (sqft) | 7,068,622 | ' | |
Weighted Average Occupancy | 94.20% | [1] | ' |
Manhattan | Office | ' | ' | |
Real estate properties | ' | ' | |
Number of Properties | 11 | ' | |
Square Feet (sqft) | 6,444,400 | ' | |
Weighted Average Occupancy | 94.10% | [1] | ' |
Manhattan | Retail | ' | ' | |
Real estate properties | ' | ' | |
Number of Properties | 3 | [2] | ' |
Square Feet (sqft) | 343,692 | ' | |
Weighted Average Occupancy | 98.40% | [1] | ' |
Manhattan | Development/Redevelopment | ' | ' | |
Real estate properties | ' | ' | |
Number of Properties | 1 | ' | |
Square Feet (sqft) | 104,000 | ' | |
Weighted Average Occupancy | 72.50% | [1] | ' |
Manhattan | Fee Interest | ' | ' | |
Real estate properties | ' | ' | |
Number of Properties | 1 | ' | |
Square Feet (sqft) | 176,530 | ' | |
Weighted Average Occupancy | 100.00% | [1] | ' |
Manhattan | Residential | ' | ' | |
Real estate properties | ' | ' | |
Number of Properties | 0 | [2] | ' |
Square Feet (sqft) | 222,855 | ' | |
Weighted Average Occupancy | 96.10% | [1] | ' |
Suburban | Office | ' | ' | |
Real estate properties | ' | ' | |
Number of Properties | 20 | ' | |
Square Feet (sqft) | 3,417,900 | ' | |
Weighted Average Occupancy | 80.20% | [1] | ' |
[1] | The weighted average occupancy for commercial properties represents the total occupied square feet divided by total available rentable square feet. The weighted average occupancy for residential properties represents the total occupied units divided by total available units. | ||
[2] | As of SeptemberB 30, 2014, we owned a building that was comprised of 270,132 square feet of retail space and 222,855 square feet of residential space. For the purpose of this report, we have included the building as part of retail properties and have shown the square footage under its respective classifications. |
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | |
Buildings | Buildings | Above and below market leases | Above and below market leases | In-place leases | In-place leases | 16 Court | ||||||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | |||||||
Investment in Commercial Real Estate Properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | ' | '3 years | '40 years | ' | ' | ' | ' | ' |
Estimated useful life of intangible assets | ' | ' | ' | ' | ' | ' | ' | '1 year | '14 years | '1 year | '14 years | ' |
Increase in rental revenue from amortization of acquired leases | $4,900,000 | $6,800,000 | $16,000,000 | $20,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase /( reduction) in interest expense from amortization of above-market rate mortgages | 100,000 | 100,000 | 400,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | 300,000 |
Identified intangible assets (included in other assets): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross amount | 254,824,000 | ' | 254,824,000 | ' | 221,615,000 | ' | ' | ' | ' | ' | ' | ' |
Accumulated amortization | -173,726,000 | ' | -173,726,000 | ' | -147,069,000 | ' | ' | ' | ' | ' | ' | ' |
Net | 81,098,000 | ' | 81,098,000 | ' | 74,546,000 | ' | ' | ' | ' | ' | ' | ' |
Identified intangible liabilities (included in deferred revenue): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross amount | 428,100,000 | ' | 428,100,000 | ' | 420,261,000 | ' | ' | ' | ' | ' | ' | ' |
Accumulated amortization | -295,849,000 | ' | -295,849,000 | ' | -268,375,000 | ' | ' | ' | ' | ' | ' | ' |
Net | $132,251,000 | ' | $132,251,000 | ' | $151,886,000 | ' | ' | ' | ' | ' | ' | ' |
Significant_Accounting_Policie4
Significant Accounting Policies (Details 2) | 9 Months Ended |
Sep. 30, 2014 | |
Revenue Recognition | ' |
Period after which payments become past due | '90 days |
Significant_Accounting_Policie5
Significant Accounting Policies (Details 3) | 3 Months Ended |
Sep. 30, 2014 | |
Tenant | |
Concentrations of Credit Risk | ' |
Number of tenants concentration risk (tenants) | 2 |
Annualized cash rent | Customer concentration | ' |
Concentrations of Credit Risk | ' |
Maximum percentage of annualized cash rent for any one tenant not individually disclosed (percent) | 3.30% |
Annualized cash rent | Customer concentration | 1185 Avenue of the Americas | ' |
Concentrations of Credit Risk | ' |
Percentage of concentration (percent) | 20.60% |
Annualized cash rent | Customer concentration | 750 Third Avenue | ' |
Concentrations of Credit Risk | ' |
Percentage of concentration (percent) | 10.20% |
Annualized cash rent | Customer concentration | 919 Third Avenue | ' |
Concentrations of Credit Risk | ' |
Percentage of concentration (percent) | 10.20% |
Annualized cash rent | Customer concentration | 1350 Avenue of the Americas | ' |
Concentrations of Credit Risk | ' |
Percentage of concentration (percent) | 9.20% |
Annualized cash rent | Customer concentration | 810 Seventh Avenue | ' |
Concentrations of Credit Risk | ' |
Percentage of concentration (percent) | 8.70% |
Annualized cash rent | First tenant | Customer concentration | ' |
Concentrations of Credit Risk | ' |
Percentage of concentration (percent) | 5.20% |
Annualized cash rent | Second tenant | Customer concentration | ' |
Concentrations of Credit Risk | ' |
Percentage of concentration (percent) | 3.50% |
Property_Acquisitions_Narrativ
Property Acquisitions Narrative (Details) (USD $) | Sep. 30, 2014 | Jul. 31, 2014 | Mar. 31, 2014 | Nov. 30, 2013 |
In Millions, unless otherwise specified | 635 Madison Avenue | 115 Spring Street | 315 West 33rd Street | Mixed-Use Residential and Commercial Property |
315 West 33rd Street | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Property acquisition price | $153.70 | $53.10 | ' | $386.80 |
Land purchase price allocation | ' | ' | ' | 116 |
Buildings purchase price allocation | ' | ' | ' | 270.8 |
Above and in-place leases | ' | ' | 33.2 | ' |
Below-market leases | ' | ' | $7.80 | ' |
Property_Dispositions_Details
Property Dispositions (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | 31-May-14 | |
673 First Ave | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Agreed sale consideration | ' | ' | ' | ' | $145,000,000 |
(Loss) gain on sale of discontinued operations | -250,000 | 13,787,000 | 117,579,000 | 13,787,000 | 117,600,000 |
Revenues | ' | ' | ' | ' | ' |
Rental revenue, net | 0 | 6,137,000 | 7,853,000 | 24,122,000 | ' |
Escalation and reimbursement revenues | 0 | 1,358,000 | 1,080,000 | 3,299,000 | ' |
Other income | 0 | 11,000 | 0 | 15,000 | ' |
Total revenues | 0 | 7,506,000 | 8,933,000 | 27,436,000 | ' |
Operating expenses | 58,000 | 1,414,000 | 1,222,000 | 5,730,000 | ' |
Real estate taxes | 0 | 1,167,000 | 1,402,000 | 3,558,000 | ' |
Ground rent | 0 | 2,196,000 | 3,001,000 | 5,778,000 | ' |
Interest expense, net of interest income | 0 | 645,000 | 879,000 | 2,274,000 | ' |
Depreciation and amortization | 0 | 462,000 | 433,000 | 4,364,000 | ' |
Total expenses | 58,000 | 5,884,000 | 6,937,000 | 21,704,000 | ' |
Net (loss) income from discontinued operations | ($58,000) | $1,622,000 | $1,996,000 | $5,732,000 | ' |
Preferred_Equity_and_Other_Inv2
Preferred Equity and Other Investments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Sep. 30, 2014 | Jan. 31, 2013 | ||||||||||
Debt and preferred equity | Preferred equity with initial mandatory redemption on July, 2015 | Preferred equity with initial mandatory redemption on July, 2015 | Preferred equity with initial mandatory redemption on July, 2016 | Preferred equity with initial mandatory redemption on July, 2016 | Preferred equity with an initial mandatory redemption on November 2017 | Preferred equity with an initial mandatory redemption on November 2017 | Preferred equity redeemed in April 2014 | Preferred equity redeemed in April 2014 | Participating financing | Participating financing | Joint Venture | |||||||||||||
extension | ||||||||||||||||||||||||
Debt and preferred equity investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Aggregate weighted average current yield (as a percent) | ' | ' | 9.76% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Senior financing | $1,546,260,000 | ' | ' | $550,000,000 | [1] | ' | $926,260,000 | [1] | ' | $70,000,000 | ' | $0 | [2] | ' | ' | ' | ' | |||||||
Carrying value | 355,828,000 | [3] | 369,364,000 | [3] | ' | 121,158,000 | [1],[3] | 115,198,000 | [1],[3] | 224,720,000 | [1],[3] | 218,330,000 | [1],[3] | 9,950,000 | [3] | 9,940,000 | [3] | 0 | [2],[3] | 25,896,000 | [2],[3] | ' | ' | ' |
Equity method investment | 40,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | 40,200,000 | ' | ||||||||||
Number of 1-year extension periods | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ||||||||||
Extension period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ||||||||||
Last extension period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ||||||||||
Ownership percentage (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ||||||||||
Investment in joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,000,000 | ||||||||||
[1] | The difference between the pay and accrual rates is included as an addition to the principal balance outstanding. | |||||||||||||||||||||||
[2] | This preferred equity investment was redeemed in April 2014. | |||||||||||||||||||||||
[3] | Carrying value is net of discounts and deferred origination fees. |
Mortgage_Note_and_Other_Loans_2
Mortgage Note and Other Loans Payable (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Apr. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Apr. 30, 2014 | Dec. 31, 2013 | |||||||||
Other loan payable | Other loan payable | 919 Third Avenue | 919 Third Avenue | 16 Court | 16 Court | 16 Court | 609 Partners, LLC | 609 Partners, LLC | 609 Partners, LLC | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Interest rate (as a percent) | ' | ' | ' | ' | ' | 8.00% | [1],[2] | ' | 5.12% | [1],[3] | ' | ' | 0.00% | [1],[4] | ' | 0.00% | [1],[5] | ' | ' | ||||
Secured debt | ' | ' | ' | ' | ' | $50,000,000 | [2] | $50,000,000 | [2] | $500,000,000 | [3] | $500,000,000 | [3] | ' | $0 | [4] | $79,243,000 | [4] | ' | ' | ' | ||
Unsecured debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [5] | ' | 23,000 | [5] | ||||||
Mortgage note and other loans payable | 550,000,000 | ' | 550,000,000 | ' | 629,266,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Controlling interest in the joint venture (as a percent) | ' | ' | ' | ' | ' | ' | ' | 51.00% | ' | ' | ' | ' | ' | ' | ' | ||||||||
Loss on early extinguishment of debt | 0 | 0 | 519,000 | 76,000 | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ||||||||
Series E preferred units canceled (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,658 | ' | ||||||||
Gross book value of the property and investment collateralizing the mortgage note and other loan payable | $1,500,000,000 | ' | $1,500,000,000 | ' | $1,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
[1] | Effective weighted average interest rate for the three months ended September 30, 2014. | ||||||||||||||||||||||
[2] | This loan is secured by a portion of a preferred equity investment. | ||||||||||||||||||||||
[3] | We own a 51.0% controlling interest in the joint venture that is the borrower on this loan. | ||||||||||||||||||||||
[4] | In April 2014, we repaid the loan and incurred a loss on early extinguishment of debt of $0.5 million. | ||||||||||||||||||||||
[5] | In April 2014, the remaining 22,658 Series E Preferred Units of the Operating Partnership were canceled. |
Corporate_Indebtedness_Narrati
Corporate Indebtedness Narrative (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Nov. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Nov. 10, 2014 |
2012 Credit Facility | 2012 Credit Facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Term loan | Term loan | Term loan | 3.00% exchangeable senior notes due 2017 | Term loan and Senior Unsecured Notes | Subsequent event | |||
extenstion_option | Minimum | Maximum | Minimum | Maximum | Term loan | ||||||||
Corporate Indebtedness | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | ' | ' | ' | ' | $244,000,000 | ' | ' | ' | ' | ' | ' | $1,738,315,000 | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Four | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | 0 | ' |
Maximum borrowing capacity | ' | ' | ' | 1,600,000,000 | 1,200,000,000 | ' | ' | 783,000,000 | ' | ' | ' | ' | 833,000,000 |
Increase to borrowing capacity | ' | ' | ' | ' | ' | ' | ' | 383,000,000 | ' | ' | ' | ' | 50,000,000 |
Number of extension options (extension options) | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extension period | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity, optional expansion | ' | ' | 1,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, description | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective rate (as a percent) | ' | ' | ' | ' | 1.61% | ' | ' | 1.64% | ' | ' | ' | ' | ' |
Interest rate added to base rate (as a percent) | ' | ' | ' | ' | 1.45% | 1.00% | 1.75% | 1.40% | 0.95% | 1.90% | ' | ' | ' |
Facility fee on total commitments, payable quarterly in arrears (as a percent) | ' | ' | ' | ' | 0.30% | ' | ' | ' | 0.15% | 0.35% | ' | ' | ' |
Letters of credit | ' | ' | 113,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, carrying value | 244,000,000 | 220,000,000 | ' | ' | 244,000,000 | ' | ' | 783,000,000 | ' | ' | ' | ' | ' |
Total undrawn capacity | ' | ' | 800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt origination and other loan costs | ' | ' | $2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' |
Corporate_Indebtedness_Senior_
Corporate Indebtedness Senior Unsecured Notes and Other Related Disclosures (Details) (USD $) | 9 Months Ended | |||
Sep. 30, 2014 | Dec. 31, 2013 | |||
Debt Instrument [Line Items] | ' | ' | ||
Accreted Balance | $1,737,973,000 | $1,430,792,000 | ||
6.00% senior unsecured notes maturing on March 31, 2016 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Unpaid Principal Balance | 255,308,000 | ' | ||
Accreted Balance | 255,238,000 | 255,206,000 | ||
Coupon Rate (as a percent) | 6.00% | [1] | ' | |
Effective Rate (as a percent) | 6.00% | [1] | ' | |
Term | '10 years | ' | ||
5.00% senior unsecured notes maturing on August 15, 2018 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Unpaid Principal Balance | 250,000,000 | [2] | ' | |
Accreted Balance | 249,728,000 | [2] | 249,681,000 | [2] |
Coupon Rate (as a percent) | 5.00% | [1],[2] | ' | |
Effective Rate (as a percent) | 5.00% | [1],[2] | ' | |
Term | '7 years | [2] | ' | |
7.75% senior unsecured notes maturing on March 15, 2020 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Unpaid Principal Balance | 250,000,000 | [2] | ' | |
Accreted Balance | 250,000,000 | [2] | 250,000,000 | [2] |
Coupon Rate (as a percent) | 7.75% | [1],[2] | ' | |
Effective Rate (as a percent) | 7.75% | [1],[2] | ' | |
Term | '10 years | [2] | ' | |
4.50% senior unsecured notes maturing on December 01, 2022 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Unpaid Principal Balance | 200,000,000 | [2] | ' | |
Accreted Balance | 200,000,000 | [2] | 200,000,000 | [2] |
Coupon Rate (as a percent) | 4.50% | [1],[2] | ' | |
Effective Rate (as a percent) | 4.50% | [1],[2] | ' | |
Term | '10 years | [2] | ' | |
4.00% senior unsecured notes maturing on June 15, 2025 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Unpaid Principal Balance | 7,000 | [3] | ' | |
Accreted Balance | 7,000 | [3] | 7,000 | [3] |
Coupon Rate (as a percent) | 4.00% | [1],[3] | ' | |
Effective Rate (as a percent) | 4.00% | [1],[3] | ' | |
Term | '20 years | [3] | ' | |
Adjusted exchange rate for the debentures of SL Green common stock (in shares) | 7.7461 | ' | ||
Principal amount of debentures, basis for conversion | 1,000 | ' | ||
Adjusted reference dividend for debentures | $1.35 | ' | ||
5.88% senior unsecured notes maturing on August 15, 2014 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Unpaid Principal Balance | 0 | [4] | ' | |
Accreted Balance | 0 | [4] | 75,898,000 | [4] |
Coupon Rate (as a percent) | ' | [1],[4] | ' | |
Effective Rate (as a percent) | ' | [1],[4] | ' | |
Term | ' | [4] | ' | |
Senior Unsecured Notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Unpaid Principal Balance | 955,315,000 | ' | ||
Accreted Balance | $954,973,000 | $1,030,792,000 | ||
[1] | Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates. | |||
[2] | We, SL Green and the Operating Partnership are co-obligors. | |||
[3] | Exchangeable senior debentures which are currently callable at par. In addition, the debentures can be put to us, at the option of the holder at par plus accrued and unpaid interest, on JuneB 15, 2015 and 2020 and upon the occurrence of certain change of control transactions. As a result of the Merger, the adjusted exchange rate for the debentures is 7.7461 shares of SL Green's common stock per $1,000 of principal amount of debentures and the adjusted reference dividend for the debentures is $1.3491. | |||
[4] | In August 2014, these notes were repaid at maturity. |
Corporate_Indebtedness_Aggrega
Corporate Indebtedness Aggregate Principal Maturities of Mortgage Note and Other Loans Payable (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Total [Abstract] | ' |
2014 | $0 |
2015 | 7 |
2016 | 258,874 |
2017 | 7,411 |
2018 | 501,799 |
Thereafter | 1,764,224 |
Total amortization of debt and principal repayments | 2,532,315 |
Mortgage Loans Payable | ' |
Scheduled Amortization [Abstract] | ' |
Remaining 2014 | 0 |
2015 | 0 |
2016 | 3,566 |
2017 | 7,411 |
2018 | 7,799 |
Thereafter | 39,630 |
Total amortization of debt | 58,406 |
Principal, Revolving Credit Facility, Term Loan and Senior Unsecured Notes Repayments [Abstract] | ' |
Remaining 2014 | 0 |
2015 | 0 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
Thereafter | 491,594 |
Total principal repayments | 491,594 |
Revolving Credit Facility | ' |
Principal, Revolving Credit Facility, Term Loan and Senior Unsecured Notes Repayments [Abstract] | ' |
Remaining 2014 | 0 |
2015 | 0 |
2016 | 0 |
2017 | 0 |
2018 | 244,000 |
Thereafter | 0 |
Total principal repayments | 244,000 |
Term loan and Senior Unsecured Notes | ' |
Principal, Revolving Credit Facility, Term Loan and Senior Unsecured Notes Repayments [Abstract] | ' |
Remaining 2014 | 0 |
2015 | 7 |
2016 | 255,308 |
2017 | 0 |
2018 | 250,000 |
Thereafter | 1,233,000 |
Total principal repayments | $1,738,315 |
Corporate_Indebtedness_Interes
Corporate Indebtedness Interest Expense Excluding Capitalized Interest (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Debt Disclosure [Abstract] | ' | ' | ' | ' |
Interest expense | $27,320 | $28,066 | $80,726 | $81,191 |
Interest income | -7 | -1 | -17 | -4 |
Interest expense, net of interest income | 27,313 | 28,065 | 80,709 | 81,187 |
Interest capitalized | $937 | $0 | $2,835 | $0 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value of Financial Instruments | ' | ' | ||
Carrying value | $355,828 | [1] | $369,364 | [1] |
Carrying Value | Level 3 | ' | ' | ||
Fair Value of Financial Instruments | ' | ' | ||
Carrying value | 355,828 | 369,364 | ||
Fixed rate debt | 1,534,973 | 1,610,815 | ||
Variable rate debt | 997,000 | 669,243 | ||
Total fair value of debt | 2,531,973 | 2,280,058 | ||
Fair Value | Level 3 | ' | ' | ||
Fair Value of Financial Instruments | ' | ' | ||
Carrying value | ' | 400,000 | ||
Fixed rate debt | 1,677,881 | 1,714,721 | ||
Variable rate debt | 1,025,320 | 684,871 | ||
Total fair value of debt | 2,703,201 | 2,399,592 | ||
Fair Value | Level 3 | Minimum | ' | ' | ||
Fair Value of Financial Instruments | ' | ' | ||
Carrying value | 355,800 | ' | ||
Fair Value | Level 3 | Maximum | ' | ' | ||
Fair Value of Financial Instruments | ' | ' | ||
Carrying value | $391,400 | ' | ||
[1] | Carrying value is net of discounts and deferred origination fees. |
Financial_Instruments_Derivati2
Financial Instruments: Derivatives and Hedging (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | |
Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | 2012 Credit Facility | |||
Interest Rate Swap | |||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Notional Value | ' | ' | $30,000,000 | ' | $30,000,000 | ' | $30,000,000 |
Strike Rate (percent) | ' | ' | 2.30% | ' | 2.30% | ' | ' |
Fair Value | ' | ' | 893,000 | ' | 893,000 | ' | ' |
Loss from settlement of hedges included in accumulated other comprehensive loss | 2,400,000 | 2,700,000 | ' | ' | ' | ' | ' |
Estimated current balance held in accumulated other comprehensive loss to be reclassified into earnings within the next 12 months | 1,000,000 | ' | ' | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Loss (Effective Portion) | ' | ' | 21,000 | -149,000 | -88,000 | 44,000 | ' |
Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | ' | ' | 254,000 | 234,000 | 756,000 | 711,000 | ' |
Amount of Gain Recognized into Income (Ineffective Portion) | ' | ' | $1,000 | $2,000 | $3,000 | $2,000 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Affiliate | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' |
Profit participation received by related party | $0.80 | $0.70 | $2.40 | $2.30 |
Alliance Building Services | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' |
Payments made for services | 1.8 | 1.9 | 4.5 | 4.9 |
SL Green | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' |
Allocation of salary and other operating costs from related party | 2 | 1.8 | 5.8 | 5.2 |
Insurance expense incurred | $1.30 | $1.30 | $3.90 | $3.70 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ' |
Minimum initial term of noncancellable operating leases | '1 year |
Non-cancellable operating leases | ' |
Remaining 2014 | $3,144 |
2015 | 10,474 |
2016 | 10,474 |
2017 | 10,474 |
2018 | 10,474 |
Thereafter | 272,906 |
Total minimum lease payments | $317,946 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
segment | |||||
Segment information | ' | ' | ' | ' | ' |
Number of reportable segments (segment) | ' | ' | 2 | ' | ' |
Revenues | $150,213 | $141,450 | $442,062 | $417,165 | ' |
Income from continuing operations: | 14,975 | 15,672 | 41,510 | 52,396 | ' |
Total assets | 6,016,685 | ' | 6,016,685 | ' | 5,888,120 |
Leverage rate assumption (as a percent) | ' | ' | 100.00% | ' | ' |
Real Estate Segment | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Revenues | 141,511 | 132,026 | 415,308 | 388,545 | ' |
Income from continuing operations: | 7,017 | 7,490 | 17,866 | 27,760 | ' |
Total assets | 5,619,268 | ' | 5,619,268 | ' | 5,517,588 |
Preferred Equity and Other Investments Segment | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Revenues | 8,702 | 9,424 | 26,754 | 28,620 | ' |
Income from continuing operations: | 7,958 | 8,182 | 23,644 | 24,636 | ' |
Total assets | $397,417 | ' | $397,417 | ' | $370,532 |
Subsequent_Events_Details
Subsequent Events (Details) (Term loan, USD $) | 9 Months Ended | 0 Months Ended |
Sep. 30, 2014 | Nov. 10, 2014 | |
Subsequent event | ||
Subsequent Event [Line Items] | ' | ' |
Increase to borrowing capacity | $383,000,000 | $50,000,000 |
Maximum borrowing capacity | $783,000,000 | $833,000,000 |