Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 13, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | RECKSON OPERATING PARTNERSHIP LP | ||
Entity Central Index Key | 930810 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $0 | ||
Entity Common Stock, Shares Outstanding | 0 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commercial real estate properties, at cost: | ||
Land and land interests | $1,467,999 | $1,207,228 |
Building and improvements | 4,305,103 | 4,297,456 |
Building leasehold and improvements | 1,028,093 | 1,028,932 |
Property under capital lease | 0 | 22,866 |
Commercial real estate properties, gross | 6,801,195 | 6,556,482 |
Less: accumulated depreciation | -1,092,295 | -953,093 |
Total commercial real estate properties, net | 5,708,900 | 5,603,389 |
Cash and cash equivalents | 33,947 | 45,856 |
Restricted cash | 36,095 | 33,061 |
Tenant and other receivables, net of allowance of $5,698 and $5,323 in 2014 and 2013, respectively | 25,087 | 24,876 |
Deferred rents receivable, net of allowance of $16,574 and $17,661 in 2014 and 2013, respectively | 187,948 | 184,772 |
Preferred equity and other investments, net of discounts and deferred origination fees of $244 and $1,772 in 2014 and 2013, respectively | 173,194 | 369,364 |
Deferred costs, net of accumulated amortization of $70,824 and $62,211 in 2014 and 2013, respectively | 119,078 | 106,565 |
Other assets | 100,625 | 104,133 |
Total assets | 6,384,874 | 6,472,016 |
Liabilities | ||
Mortgages and other loans payable | 500,000 | 896,346 |
Revolving credit facility | 385,000 | 220,000 |
Term loan and senior unsecured notes | 1,788,001 | 1,430,792 |
Accrued interest payable and other liabilities | 27,061 | 32,910 |
Accounts payable and accrued expenses | 64,107 | 54,375 |
Deferred revenue | 130,426 | 160,329 |
Capitalized lease obligation | 0 | 27,223 |
Deferred land leases payable | 418 | 21,621 |
Security deposits | 35,154 | 32,502 |
Total liabilities | 2,930,167 | 2,876,098 |
Commitments and contingencies | ||
Capital | ||
General partner capital | 3,109,592 | 3,249,120 |
Limited partner capital | 0 | 0 |
Accumulated other comprehensive loss | -3,106 | -3,981 |
Total ROP partner's capital | 3,106,486 | 3,245,139 |
Noncontrolling interests in other partnerships | 348,221 | 350,779 |
Total capital | 3,454,707 | 3,595,918 |
Total liabilities and capital | $6,384,874 | $6,472,016 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Tenant and other receivables, allowance | $5,698 | $5,323 |
Deferred rents receivable, allowance | 16,574 | 17,661 |
Preferred equity investments, deferred origination fees and discounts | 244 | 1,772 |
Deferred costs, accumulated amortization | $70,824 | $62,211 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Rental revenue, net | $549,531 | $508,708 | $473,849 |
Escalation and reimbursement | 90,712 | 84,235 | 80,707 |
Investment income | 35,141 | 43,226 | 9,497 |
Other income | 2,853 | 4,738 | 6,798 |
Total revenues | 678,237 | 640,907 | 570,851 |
Expenses | |||
Operating expenses, including $23,380 (2014), $22,454 (2013) and $19,838 (2012) of related party expenses | 147,211 | 139,317 | 128,900 |
Real estate taxes | 127,333 | 112,813 | 103,280 |
Ground rent | 15,458 | 15,656 | 15,348 |
Interest expense, net of interest income | 120,006 | 123,458 | 120,336 |
Amortization of deferred financing costs | 6,023 | 5,964 | 6,152 |
Depreciation and amortization | 192,114 | 177,127 | 154,753 |
Loan loss reserves, net of recoveries | 0 | 0 | -472 |
Transaction related costs | 2,594 | 2,032 | 2,530 |
Marketing, general and administrative | 345 | 354 | 339 |
Total expenses | 611,084 | 576,721 | 531,166 |
Income from continuing operations before equity in net income from unconsolidated joint ventures, equity in net gain on sale of interest in unconsolidated joint venture and loss on early extinguishment of debt | 67,153 | 64,186 | 39,685 |
Equity in net income from unconsolidated joint ventures | 2,810 | 3,942 | 966 |
Equity in net gain on sale of interest in unconsolidated joint venture | 0 | 0 | 1,001 |
Loss on early extinguishment of debt | -7,385 | -76 | -6,904 |
Income from continuing operations | 62,578 | 68,052 | 34,748 |
Net income from discontinued operations | 1,996 | 5,907 | 5,703 |
Gain on sale of discontinued operations | 117,579 | 13,756 | 0 |
Net income | 182,153 | 87,715 | 40,451 |
Net income attributable to noncontrolling interests in other partnerships | -2,641 | -5,200 | -6,013 |
Net income attributable to ROP common unitholder | 179,512 | 82,515 | 34,438 |
Income from continuing operations | 59,937 | 62,852 | 28,735 |
Discontinued operations | $119,575 | $19,663 | $5,703 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Related party expenses included in operating expenses | $23,380 | $22,454 | $19,838 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to ROP common unitholder | $179,512 | $82,515 | $34,438 |
Other comprehensive income: | |||
Change in net unrealized gain on derivative instruments | 875 | 944 | 192 |
Comprehensive income attributable to ROP common unitholder | $180,387 | $83,459 | $34,630 |
Consolidated_Statements_of_Cap
Consolidated Statements of Capital (USD $) | 3 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Increase (Decrease) in Partners' Capital | ||||||||
Beginning Balance | $3,595,918 | $3,508,755 | $3,595,918 | $3,508,755 | $2,938,946 | |||
Contributions | 2,461,365 | 2,260,622 | 2,615,549 | |||||
Distributions | -2,785,604 | -2,262,118 | -2,086,383 | |||||
Net income | 15,059 | 14,179 | 22,050 | 20,473 | 182,153 | 87,715 | 40,451 | |
Other comprehensive loss | 875 | 944 | 192 | |||||
Ending Balance | 3,454,707 | 3,595,918 | 3,454,707 | 3,595,918 | 3,508,755 | |||
General Partner's Capital Class A Common Units | Class A Common Units | ||||||||
Increase (Decrease) in Partners' Capital | ||||||||
Beginning Balance | 3,249,120 | 3,156,013 | 3,249,120 | 3,156,013 | 2,579,956 | |||
Contributions | 2,461,365 | 2,260,622 | 2,615,549 | |||||
Distributions | -2,780,405 | -2,250,030 | -2,073,930 | |||||
Net income | 179,512 | 82,515 | 34,438 | |||||
Ending Balance | 3,109,592 | 3,249,120 | 3,109,592 | 3,249,120 | 3,156,013 | |||
Limited Partner's Capital | ||||||||
Increase (Decrease) in Partners' Capital | ||||||||
Beginning Balance | 0 | |||||||
Ending Balance | 0 | 0 | 0 | 0 | 0 | 0 | ||
Noncontrolling Interests In Other Partnerships | ||||||||
Increase (Decrease) in Partners' Capital | ||||||||
Beginning Balance | 350,779 | 357,667 | 350,779 | 357,667 | 364,107 | |||
Distributions | -5,199 | -12,088 | -12,453 | |||||
Net income | 2,641 | 5,200 | 6,013 | |||||
Ending Balance | 348,221 | 350,779 | 348,221 | 350,779 | 357,667 | |||
Accumulated Other Comprehensive Loss | ||||||||
Increase (Decrease) in Partners' Capital | ||||||||
Beginning Balance | -3,981 | -4,925 | -3,981 | -4,925 | -5,117 | |||
Other comprehensive loss | 875 | 944 | 192 | |||||
Ending Balance | ($3,106) | ($3,981) | ($3,106) | ($3,981) | ($4,925) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net income | $182,153 | $87,715 | $40,451 |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 198,570 | 187,917 | 168,630 |
Equity in net gain on sale of interest in unconsolidated joint venture | 0 | 0 | -1,001 |
Equity in net income from unconsolidated joint venture | -2,810 | -3,942 | -966 |
Distributions of cumulative earnings from unconsolidated joint ventures | 2,611 | 3,942 | 444 |
Loss on early extinguishment of debt | 7,385 | 76 | 6,904 |
Loan loss reserves, net of recoveries | 0 | 0 | -472 |
Gain on sale of discontinued operations | -117,579 | -13,756 | 0 |
Deferred rents receivable | -23,317 | -21,222 | -23,999 |
Other non-cash adjustments | -41,302 | -45,624 | -21,311 |
Changes in operating assets and liabilities: | |||
Restricted cashboperations | -3,984 | -7,163 | -1,629 |
Tenant and other receivables | -975 | -6,161 | -4,017 |
Deferred lease costs | -21,031 | -24,451 | -11,715 |
Other assets | 1,659 | -4,559 | -1,256 |
Accounts payable, accrued expenses and other liabilities | -3,543 | 1,081 | 8,845 |
Deferred revenue and land leases payable | 1,407 | 4,391 | 2,894 |
Net cash provided by operating activities | 179,244 | 158,244 | 161,802 |
Investing Activities | |||
Acquisitions of real estate property | -235,120 | -386,775 | -277,060 |
Additions to land, buildings and improvements | -94,882 | -94,971 | -60,518 |
Escrowed cashbcapital improvements | 950 | -193 | 4,328 |
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 0 | 19,926 | 152 |
Net proceeds from disposition of real estate/joint venture interest | 137,059 | 211,048 | 44,297 |
Other investments | -40,000 | -19,831 | 7,000 |
Origination of debt and preferred equity investments | 0 | -6,531 | -11,218 |
Repayments or redemption of debt and preferred equity investments | 252,916 | 0 | 777 |
Net cash provided by (used in) investing activities | 20,923 | -277,327 | -292,242 |
Financing Activities | |||
Repayments of mortgages and other loans payable | -396,323 | -10,110 | -196,475 |
Proceeds from credit facility and senior unsecured notes | 1,908,000 | 1,163,938 | 1,751,480 |
Repayments of credit facility and senior unsecured notes | -1,385,898 | -1,014,000 | -1,478,284 |
Payments of debt extinguishment costs | -6,693 | 0 | 0 |
Contributions from common unitholder | 2,457,365 | 2,253,284 | 2,155,115 |
Distributions to noncontrolling interests in other partnerships | -5,199 | -12,088 | -12,453 |
Distributions to common unitholder | -2,780,405 | -2,250,030 | -2,073,930 |
Deferred loan costs and capitalized lease obligation | -2,923 | -90 | -7,731 |
Net cash (used in) provided by financing activities | -212,076 | 130,904 | 137,722 |
Net (decrease) increase in cash and cash equivalents | -11,909 | 11,821 | 7,282 |
Cash and cash equivalents at beginning of year | 45,856 | 34,035 | 26,753 |
Cash and cash equivalents at end of year | 33,947 | 45,856 | 34,035 |
Supplemental Cash Flow Disclosure | |||
Interest paid | 128,991 | 128,220 | 125,776 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | |||
Tenant improvements and capital expenditures payable | 904 | 1,757 | 1,104 |
Deferred leasing payable | 11,127 | 2,206 | 1,588 |
Capital leased asset | 0 | 10,657 | 0 |
Change in fair value of hedge | 519 | 588 | 0 |
Transfer of treasury lock hedge | 0 | 0 | 165 |
Contributions from common unitholder | 4,000 | 7,338 | 156,140 |
Transfer of preferred equity investments | 0 | 0 | 324,858 |
Transfer of mortgage note and other loans payable | 0 | 0 | 50,023 |
Redemption of Series E units of limited partnership interest of the Operating Partnership | $0 | $0 | $31,698 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 12 Months Ended | |||||||||||
Dec. 31, 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. The sole general partner of ROP is a wholly-owned subsidiary of SL Green Operating Partnership, L.P., or the Operating Partnership. The sole limited partner of ROP is the Operating Partnership. The Operating Partnership is 96.08% owned by SL Green Realty Corp., or SL Green, as of December 31, 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 and residential real estate properties, principally office properties, and also owns land for future development, located in New York City, Westchester County, Connecticut and New Jersey, which collectively is also known as the New York Metropolitan area. | ||||||||||||
SL Green, and the Operating Partnership were formed in June 1997. SL Green has qualified, and expects to qualify in the current fiscal year as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, and operates as a self-administered, self-managed REIT. A REIT is a legal entity that holds real estate interests and, through payments of dividends to stockholders, is permitted to minimize the payment of Federal income taxes at the corporate level. | ||||||||||||
On January 25, 2007, SL Green completed the acquisition of all of the outstanding shares of common stock of Reckson Associates Realty Corp., or RARC, the prior general partner of ROP. This transaction is referred to herein as the Merger. | ||||||||||||
In connection with the closing of our 2012 credit facility, in which we, along with SL Green and the Operating Partnership are borrowers, SL Green transferred three properties with total assets aggregating to $320.2 million at December 31, 2012. During 2014, SL Green transferred an additional five properties with total assets aggregating to $884.3 million 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 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 consolidated financial statements and financial information presented for all prior years have been retrospectively adjusted to furnish comparative information. | ||||||||||||
On September 30, 2012, SL Green transferred $324.9 million of preferred equity investments to ROP, one of which was subject to a secured $50.0 million loan. Under the Business Combinations guidance (Accounting Standard Codification 805-50), these transfers were determined to be transfers of assets between the indirect parent company and its wholly-owned subsidiary. As such, the assets were transferred at their carrying value and accounted for prospectively from the date of transfer. | ||||||||||||
As of December 31, 2014, we owned the following interests in commercial 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 Brooklyn, Westchester County, Connecticut and New Jersey, which are collectively known as the Suburban properties: | ||||||||||||
Location | Type | Number of | Approximate Square Feet (unaudited) | Weighted Average | ||||||||
Buildings | Occupancy(1) (unaudited) | |||||||||||
Commercial: | ||||||||||||
Manhattan | Office | 13 | 7,611,645 | 92.8 | % | |||||||
Retail(2) | 5 | 352,892 | 98.4 | % | ||||||||
Redevelopment | 1 | 104,000 | 72.5 | % | ||||||||
Fee Interest | 1 | 176,530 | 100 | % | ||||||||
20 | 8,245,067 | 92.9 | % | |||||||||
Suburban | Office | 20 | 3,417,900 | 80.5 | % | |||||||
Total commercial properties | 40 | 11,662,967 | 89.3 | % | ||||||||
Residential: | ||||||||||||
Manhattan | Residential(2) | — | 222,855 | 95.8 | % | |||||||
Total portfolio | 40 | 11,885,822 | 89.4 | % | ||||||||
____________________________________________________________________ | ||||||||||||
-1 | The weighted average occupancy represents the total leased square feet divided by total available rentable square feet. | |||||||||||
-2 | As of December 31, 2014, we owned a building that was comprised of 270,132 square feet (unaudited) of retail space and 222,855 square feet (unaudited) 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 December 31, 2014, we also held preferred equity and other investments with a book value of $173.2 million. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 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 the 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 | ||||||||
Real estate properties are presented at cost less accumulated depreciation and amortization. Costs directly related to the development or redevelopment of properties are capitalized. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives. | ||||||||
A property to be disposed of is reported at the lower of its carrying value or its estimated fair value, less its cost to sell. Once an asset is held for sale, depreciation expense is no longer recorded and the historic results are reclassified as discontinued operations. See Note 4, "Property Dispositions." | ||||||||
Properties are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: | ||||||||
Category | Term | |||||||
Building (fee ownership) | 40 years | |||||||
Building improvements | shorter of remaining life of the building or useful life | |||||||
Building (leasehold interest) | lesser of 40 years or remaining term of the lease | |||||||
Property under capital lease | remaining lease term | |||||||
Furniture and fixtures | four to seven years | |||||||
Tenant improvements | shorter of remaining term of the lease or useful life | |||||||
Depreciation expense (including amortization of the capital lease asset) amounted to $180.5 million, $166.3 million and $145.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
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 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 do not believe that the values of any of our properties were impaired at December 31, 2014. | ||||||||
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 incur a variety of costs in the development and leasing of our properties. After determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. The costs of land and building under development include specifically identifiable costs. The capitalized costs include, but are not limited to, pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs and other costs incurred during the period of development. We consider a construction project as substantially completed and held available for occupancy upon the completion of tenant improvements, but no later than one year from cessation of major construction activity. We cease capitalization on the portions substantially completed and occupied or held available for occupancy, and capitalize only those costs associated with the portions under construction. | ||||||||
Results of operations of properties acquired are included in the consolidated statements of income from the date of acquisition. | ||||||||
We recognize the assets acquired, liabilities assumed (including contingencies) and any noncontrolling interests in an acquired entity at their fair values on the acquisition date. We expense acquisition-related transaction costs as incurred, which are included in transaction related costs on our consolidated statements of income. | ||||||||
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 the 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 ranges 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. As of December 31, 2014, the weighted average amortization period for above-market leases, below-market leases, and in-place lease costs is 4.3 years, 4.3 years, and 4.9 years, respectively. | ||||||||
We recognized an increase of $21.1 million, $19.1 million and $19.0 million in rental revenue for the years ended December 31, 2014, 2013 and 2012, 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. The increase in rental revenue for the year ended December 31, 2013 is net of $6.8 million resulting from a write-off of above-market and in-place balances associated with a former tenant. Excluding this non-recurring charge, we recognized an increase of $25.9 million in rental revenue for the year ended December 31, 2013 for the amortization of aggregate below-market leases in excess of above-market leases and reductions in lease origination costs. 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 $2.1 million for the year ended December 31, 2014. We recognized a reduction in interest expense for the amortization of the above-market rate mortgages assumed of $2.5 million and $2.2 million for the years ended December 31, 2013 and 2012, 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 December 31, 2014 and 2013 (in thousands): | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Identified intangible assets (included in other assets): | ||||||||
Gross amount | $ | 294,934 | $ | 261,725 | ||||
Accumulated amortization | (216,231 | ) | (181,468 | ) | ||||
Net | $ | 78,703 | $ | 80,257 | ||||
Identified intangible liabilities (included in deferred revenue): | ||||||||
Gross amount | $ | 450,049 | $ | 442,210 | ||||
Accumulated amortization | (322,638 | ) | (285,291 | ) | ||||
Net | $ | 127,411 | $ | 156,919 | ||||
The estimated annual amortization of acquired below-market leases, net of acquired above-market leases (a component of rental revenue), for each of the five succeeding years is as follows (in thousands): | ||||||||
2015 | $ | 2,033 | ||||||
2016 | 2,146 | |||||||
2017 | 3,030 | |||||||
2018 | 4,547 | |||||||
2019 | 5,178 | |||||||
The estimated annual amortization of all other identifiable assets (a component of depreciation and amortization expense) including tenant improvements for each of the five succeeding years is as follows (in thousands): | ||||||||
2015 | $ | 6,183 | ||||||
2016 | 4,812 | |||||||
2017 | 3,413 | |||||||
2018 | 2,230 | |||||||
2019 | 1,760 | |||||||
Investment in Unconsolidated Joint Ventures | ||||||||
We account for our investment in the unconsolidated joint venture under the equity method of accounting in cases where we exercise significant influence, but do not control the entity and are not considered to be the primary beneficiary. We consolidate those joint ventures that we control or which are VIEs and where we are considered to be the primary beneficiary. In all the joint ventures, the rights of the joint venture partner are both protective as well as participating. Unless we are determined to be the primary beneficiary in a VIE, these participating rights preclude us from consolidating these non-VIE entities. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for equity in net income (loss) and cash contributions and distributions. Equity in net income (loss) from unconsolidated joint ventures is allocated based on our ownership or economic interest in the joint venture. When a capital event (as defined in each joint venture agreement) such as a refinancing occurs, if return thresholds are met, future equity income will be allocated at our increased economic interest. We recognize incentive income from unconsolidated real estate joint ventures as income to the extent it is earned and not subject to a clawback feature. Distributions we receive from unconsolidated real estate joint ventures in excess of our basis in the investment are recorded as offsets to our investment balance if we remain liable for future obligations of the joint venture or may otherwise be committed to provide future additional financial support. None of the joint venture debt is recourse to us. See Note 5, "Preferred Equity and Other Investments." | ||||||||
We assess our investment in our unconsolidated joint venture for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value. We evaluate our equity investment for impairment based on the joint venture's projected discounted cash flows. We do not believe that the value of our equity investment was impaired at December 31, 2014. | ||||||||
We may originate loans for real estate acquisition, development and construction, where we expect to receive some or all of the residual profit from such projects. When the risk and rewards of these arrangements are essentially the same as an investor or joint venture partner, we account for these arrangements as real estate investments under the equity method of accounting for investments. Otherwise, we account for these arrangements consistent with our loan accounting for our debt and preferred equity investments. | ||||||||
Cash and Cash Equivalents | ||||||||
We consider all highly liquid investments with maturity of three months or less when purchased to be cash equivalents. | ||||||||
Restricted Cash | ||||||||
Restricted cash primarily consists of security deposits held on behalf of our tenants, interest reserves, as well as capital improvement and real estate tax escrows required under certain loan agreements. | ||||||||
Deferred Lease Costs | ||||||||
Deferred lease costs consist of fees and direct costs incurred to initiate and renew operating leases and are amortized on a straight-line basis over the related lease term. | ||||||||
Deferred Financing Costs | ||||||||
Deferred financing costs represent commitment fees, legal, title and other third party costs associated with obtaining commitments for financing which result in a closing of such financing. These costs are amortized over the terms of the respective agreements. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financing transactions, which do not close, are expensed in the period in which it is determined that the financing will not close. | ||||||||
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. Several of the debt and 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 is 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. For investments acquired at a discount for credit quality, the difference between contractual cash flows and expected cash flows at acquisition is not accreted. Anticipated exit fees, the collection of which 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. | ||||||||
Asset management fees are recognized on a straight-line basis over the term of the asset management agreement. | ||||||||
Allowance for Doubtful Accounts | ||||||||
We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our tenants to make required payments. If the financial condition of a specific tenant were to deteriorate, resulting in an impairment of its ability to make payments, additional allowances may be required. | ||||||||
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 losses 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 additional loan reserves recorded during the years ended December 31, 2014, 2013 and 2012. We recorded recoveries of $0.5 million during the year ended December 31, 2012 in connection with the sale of our investments. This is included in loan loss reserves, net of recoveries on the consolidated statements of income. | ||||||||
Preferred equity investments held for sale are carried at the lower of cost or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale. In such situations, the investment will be reclassified at its net carrying value to preferred equity investments held to maturity. For these reclassified investments, the difference between the current carrying value and the expected cash to be collected at maturity will be accreted into income over the remaining term of the investment. | ||||||||
Rent Expense | ||||||||
Rent expense is recognized on a straight-line basis over the initial term of the lease. The excess of the rent expense recognized over the amounts contractually due pursuant to the underlying lease is included in the deferred land leases payable on the consolidated balance sheets. | ||||||||
Income Taxes | ||||||||
ROP is a partnership and, as a result, all income and losses of the partnership are allocated to the partners for inclusion in their respective income tax returns. No provision has been made for income taxes in the consolidated financial statements since such taxes, if any, are the responsibility of the individual partners. | ||||||||
We follow a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that is more-likely-than-not to be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited. | ||||||||
Earnings per Unit | ||||||||
Earnings per unit was not computed in 2014, 2013 and 2012 as there were no outstanding common units held by third parties at December 31, 2014, 2013 and 2012. | ||||||||
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. | ||||||||
Exchangeable Debt Instruments | ||||||||
The initial proceeds from exchangeable debt that may be settled in cash, including partial cash settlements, must be bifurcated between a liability component and an equity component associated with the embedded conversion option. The objective of the accounting guidance is to require the liability and equity components of exchangeable debt to be separately accounted for in a manner such that the interest expense on the exchangeable debt is not recorded at the stated rate of interest but rather at an effective rate that reflects the issuer's conventional debt borrowing rate at the date of issuance. We calculate the liability component of exchangeable debt based on the present value of the contractual cash flows discounted at our comparable market conventional debt borrowing rate at the date of issuance. The difference between the principal amount and the fair value of the liability component is reported as a discount on the exchangeable debt that is accreted as additional interest expense from the issuance date through the contractual maturity date using the effective interest method. A portion of this additional interest expense may be capitalized to the development and redevelopment balances qualifying for interest capitalization each period. The liability component of the exchangeable debt is reported net of discounts on our consolidated balance sheets. We calculate the equity component of exchangeable debt based on the difference between the initial proceeds received from the issuance of the exchangeable debt and the fair value of the liability component at the issuance date. The equity component is included in additional paid-in-capital, net of issuance costs, on our consolidated balance sheets. We allocate issuance costs for exchangeable debt between the liability and the equity components based on their relative values. | ||||||||
Derivative Instruments | ||||||||
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. Effectiveness is essential for those derivatives that we intend to qualify for hedge accounting. Some derivative instruments are associated with an anticipated transaction. In those cases, hedge effectiveness criteria also require that it be probable that the underlying transaction occurs. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract. | ||||||||
To determine the fair values of derivative instruments, we use a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. For the majority of financial instruments including most derivatives, long-term investments and long-term debt, standard market conventions and techniques such as discounted cash flow analysis, option pricing models, replacement cost, and termination cost are used to determine fair value. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized. | ||||||||
In the normal course of business, we are exposed to the effect of interest rate changes and limit these risks by following established risk management policies and procedures including the use of derivatives. To address exposure to interest rates, derivatives are used primarily to fix the rate on debt based on floating-rate indices and manage the cost of borrowing obligations. | ||||||||
We use a variety of commonly used derivative products that are considered plain vanilla derivatives. These derivatives typically include interest rate swaps, caps, collars and floors. We expressly prohibit the use of unconventional derivative instruments and using derivative instruments for trading or speculative purposes. Further, we have a policy of only entering into contracts with major financial institutions based upon their credit ratings and other factors. | ||||||||
We may employ swaps, forwards or purchased options to hedge qualifying forecasted transactions. Gains and losses related to these transactions are deferred and recognized in net income as interest expense in the same period or periods that the underlying transaction occurs, expires or is otherwise terminated. | ||||||||
Hedges that are reported at fair value and presented on the balance sheet could be characterized as cash flow hedges or fair value hedges. Interest rate caps and collars are examples of cash flow hedges. Cash flow hedges address the risk associated with future cash flows of interest payments. For all hedges held by us and which were deemed to be fully effective in meeting the hedging objectives established by our corporate policy governing interest rate risk management, no net gains or losses were reported in earnings. The changes in fair value of hedge instruments are reflected in accumulated other comprehensive income. For derivative instruments not designated as hedging instruments, the gain or loss resulting from the change in the estimated fair value of the derivative instruments is recognized in current earnings during the period of change. | ||||||||
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 primarily 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 properties located in Brooklyn, Westchester County, Connecticut and New Jersey. The tenants located in our buildings operate in various industries. Other than two tenants who account for 4.7% and 4.4% of our share of annualized cash rent, respectively, no other tenant in the portfolio accounted for more than 3.0% of our share of annualized cash rent, including our share of joint venture annualized cash rent at December 31, 2014. Approximately 17.4%, 9.4%, 8.7%, 8.6%, and 7.8%, of our share of annualized cash rent was attributable to 1185 Avenue of the Americas, 625 Madison Avenue, 750 Third Avenue, 919 Third Avenue and 1350 Avenue of the Americas, respectively, for the year ended December 31, 2014. | ||||||||
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. | ||||||||
Accounting Standards Updates | ||||||||
In February 2015, the Financial Accounting Standards Board, or FASB, issued new guidance that amends the current consolidation guidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities (Accounting Standards Update, or ASU, No. 2015-02). Under this analysis, limited partnerships and other similar entities will be considered a VIE unless the limited partners hold substantive kick-out rights or participating rights. The guidance is effective for annual and interim periods beginning after December 15, 2015. Early adoption of this guidance is permitted. The Company is currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements. | ||||||||
In May 2014, 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 (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. | ||||||||
In February 2013, the FASB issued guidance on the presentation and disclosure of reclassification adjustments out of accumulated other comprehensive income, or AOCI (ASU No. 2013-02). The standard requires an entity to present information about significant items reclassified out of AOCI by component either on the face of the statement where net income is presented or as a separate disclosure in the notes to financial statements. The guidance was effective for calendar year-end public companies beginning in the first quarter of 2013 and its adoption did not have a material impact on our consolidated financial statements. | ||||||||
In December 2011, the FASB issued guidance that concluded when a parent ceases to have a controlling financial interest in a subsidiary that is in-substance real estate as a result of default on the subsidiary's nonrecourse debt, the reporting entity must apply the accounting guidance for sales of real estate to determine whether it should derecognize the in-substance real estate (ASU No. 2011-10). The reporting entity is precluded from derecognizing the real estate until legal ownership has been transferred to the lender to satisfy the debt. The guidance was effective for calendar year-end public and nonpublic companies in 2013 and is to be applied on a prospective basis. Adoption of this guidance did not have a material impact on our consolidated financial statements. | ||||||||
In May 2011, the FASB issued updated guidance on fair value measurement which amends U.S. GAAP to conform to IFRS measurement and disclosure requirements (ASU No. 2011-04). The amendments change the wording used to describe the requirements in U.S. GAAP for measuring fair value, changes certain fair value measurement principles and enhances disclosure requirements. This guidance was effective as of the first quarter of 2012, and its adoption did not have a material impact on our consolidated financial statements. |
Property_Acquisitions
Property Acquisitions | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Combinations [Abstract] | |||||||||||||
Property Acquisitions | Property Acquisitions | ||||||||||||
During the year ended December 31, 2014, the properties listed below were acquired from third parties. The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the closing of these acquisitions (in thousands): | |||||||||||||
102 Greene | 635 Madison Avenue(1)(2) | 115 Spring | |||||||||||
Street(1) | Street(1) | ||||||||||||
Acquisition Date | Oct-14 | Sep-14 | Jul-14 | ||||||||||
Ownership Type | Fee Interest | Fee Interest | Fee Interest | ||||||||||
Property Type | Retail | Land | Retail | ||||||||||
Purchase Price Allocation: | |||||||||||||
Land | $ | 11,288 | $ | 153,745 | $ | 15,938 | |||||||
Building and building leasehold | 20,962 | — | 37,187 | ||||||||||
Above-market lease value | — | — | — | ||||||||||
Acquired in-place lease value | — | — | — | ||||||||||
Other assets, net of other liabilities | — | — | — | ||||||||||
Assets acquired | 32,250 | 153,745 | 53,125 | ||||||||||
Mark-to-market assumed debt | — | — | — | ||||||||||
Below-market lease value | — | — | — | ||||||||||
Liabilities assumed | — | — | — | ||||||||||
Purchase price | $ | 32,250 | $ | 153,745 | $ | 53,125 | |||||||
Net consideration funded by us at closing, excluding consideration financed by debt | $ | 32,250 | $ | 153,745 | $ | 53,125 | |||||||
Equity and/or debt investment held | $ | — | $ | — | $ | — | |||||||
Debt assumed | $ | — | $ | — | $ | — | |||||||
____________________________________________________________________ | |||||||||||||
-1 | We are currently in the process of analyzing the purchase price allocation and, as such, we have not allocated any value to intangible assets such as above- and below-market lease or in-place lease value. | ||||||||||||
-2 | This property was acquired inclusive of the issuance of $4.0 million aggregate liquidation preference of Series J Preferred Units of limited partnership interest of the Operating Partnership. | ||||||||||||
During the year ended December 31, 2013, the properties listed below were acquired from third parties. The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the closing of these acquisitions (in thousands): | |||||||||||||
315 West 33rd Street(1) | 16 Court Street(2) | ||||||||||||
Acquisition Date | Nov-13 | Apr-13 | |||||||||||
Ownership Type | Fee Interest | Fee Interest | |||||||||||
Property Type | Residential | Office | |||||||||||
Purchase Price Allocation: | |||||||||||||
Land | $ | 195,834 | $ | 19,217 | |||||||||
Building and building leasehold | 164,429 | 63,210 | |||||||||||
Above-market lease value | 7,084 | 5,122 | |||||||||||
Acquired in-place lease value | 26,125 | 9,422 | |||||||||||
Other assets, net of other liabilities | 1,142 | 3,380 | |||||||||||
Assets acquired | 394,614 | 100,351 | |||||||||||
Mark-to-market assumed debt | — | 294 | |||||||||||
Below-market lease value | 7,839 | 3,885 | |||||||||||
Liabilities assumed | 7,839 | 4,179 | |||||||||||
Purchase price | $ | 386,775 | $ | 96,172 | |||||||||
Net consideration funded by us at closing, excluding consideration financed by debt | $ | 386,775 | $ | 4,000 | |||||||||
Equity and/or debt investment held | $ | — | $ | 11,535 | |||||||||
Debt assumed | $ | — | $ | 84,642 | |||||||||
____________________________________________________________________ | |||||||||||||
-1 | During the year ended December 31, 2014, we finalized the purchase price allocation based on a third party appraisal and additional facts and circumstances that existed at the acquisition dates. These adjustments did not have a material impact to our consolidated statement of income for the year ended December 31, 2014. | ||||||||||||
-2 | This property was transferred from SL Green in 2014. See Note 1, Organization and Basis of Presentation, for further discussion. In April 2013, we acquired interests from our joint venture partner, City Investment Fund, or CIF, in 16 Court Street in Brooklyn for $4.0 million. We have consolidated the ownership of the building. The transaction valued the consolidated interest at $96.2 million, inclusive of the $84.6 million mortgage encumbering the property. In April 2014, we repaid the mortgage. | ||||||||||||
During the year ended December 31, 2012, the properties listed below were acquired from third parties. The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the closing of these acquisitions (in thousands): | |||||||||||||
131-137 Spring Street(1) | 635-641 Sixth Avenue | 304 Park Avenue South(2) | |||||||||||
Acquisition Date | Dec-12 | Sep-12 | Jun-12 | ||||||||||
Ownership Type | Fee Interest | Fee Interest | Fee Interest | ||||||||||
Property Type | Retail | Development | Office | ||||||||||
Purchase Price Allocation: | |||||||||||||
Land | $ | 27,021 | $ | 69,848 | $ | 54,189 | |||||||
Building and building leasehold | 105,342 | 104,474 | 75,619 | ||||||||||
Above-market lease value | 179 | — | 2,824 | ||||||||||
Acquired in-place lease value | 7,046 | 7,727 | 8,265 | ||||||||||
Other assets, net of other liabilities | — | — | — | ||||||||||
Assets acquired | 139,588 | 182,049 | 140,897 | ||||||||||
Mark-to-market assumed debt | — | — | — | ||||||||||
Below-market lease value | 17,288 | 9,049 | 5,897 | ||||||||||
Liabilities assumed | 17,288 | 9,049 | 5,897 | ||||||||||
Purchase price | $ | 122,300 | $ | 173,000 | $ | 135,000 | |||||||
Net consideration funded by us at closing, excluding consideration financed by debt | $ | 122,300 | $ | 173,000 | $ | 135,000 | |||||||
Equity and/or debt investment held | $ | — | $ | — | $ | — | |||||||
Debt assumed | $ | — | $ | — | $ | — | |||||||
____________________________________________________________________ | |||||||||||||
-1 | This property was transferred from SL Green in 2014. See Note 1, Organization and Basis of Presentation, for further discussion. | ||||||||||||
-2 | This property was acquired with approximately $102.0 million in cash and $33.0 million in units of limited partnership interest of the Operating Partnership. |
Property_Dispositions
Property Dispositions | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||
Property Dispositions | Property Dispositions | |||||||||||||||
The following table summarizes the properties sold during the years ended December 31, 2014 and 2013: | ||||||||||||||||
Property | Disposition Date | Property Type | Approximate Usable Square Feet | Sales Price | Gain on Sale(1) | |||||||||||
(unaudited) | (in millions) | (in millions) | ||||||||||||||
673 First Avenue | May-14 | Office | 422,000 | $ | 145 | $ | 117.6 | |||||||||
333 West 34th Street | Aug-13 | Office | 345,400 | 220.3 | 13.8 | |||||||||||
____________________________________________________________________ | ||||||||||||||||
-1 | The gain on sale for 673 First Avenue and 333 West 34th Street are net of a $3.4 million and $3.0 million, respectively, employee compensation award accrued in connection with the realization of this investment gain as a bonus to certain employees that were instrumental in realizing the gain on sale. | |||||||||||||||
Discontinued Operations | ||||||||||||||||
Discontinued operations included the results of operations of real estate assets sold prior to December 31, 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 years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Revenues | ||||||||||||||||
Rental revenue | $ | 7,853 | $ | 28,843 | $ | 31,574 | ||||||||||
Escalation and reimbursement revenues | 1,080 | 4,093 | 4,378 | |||||||||||||
Other income | — | 8 | 101 | |||||||||||||
Total revenues | 8,933 | 32,944 | 36,053 | |||||||||||||
Operating expenses | 1,222 | 6,733 | 8,590 | |||||||||||||
Real estate taxes | 1,402 | 4,571 | 4,536 | |||||||||||||
Ground rent | 3,001 | 7,974 | 6,363 | |||||||||||||
Interest expense, net of interest income | 879 | 2,933 | 3,189 | |||||||||||||
Depreciation and amortization | 433 | 4,826 | 7,672 | |||||||||||||
Total expenses | 6,937 | 27,037 | 30,350 | |||||||||||||
Net income from discontinued operations | $ | 1,996 | $ | 5,907 | $ | 5,703 | ||||||||||
Preferred_Equity_and_Other_Inv
Preferred Equity and Other Investments | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||
Preferred Equity and Other Investments | Preferred Equity and Other Investments | |||||||||||||
Preferred Equity Investments | ||||||||||||||
As of December 31, 2014 and 2013, we held the following preferred equity investments, with an aggregate weighted average current yield of approximately 10.89% at December 31, 2014 (in thousands): | ||||||||||||||
Type | December 31, 2014 Senior Financing | 31-Dec-14 | 31-Dec-13 | Initial | ||||||||||
Carrying Value(1) | Carrying Value(1) | Mandatory | ||||||||||||
Redemption | ||||||||||||||
Preferred equity(2) | $ | 550,000 | $ | 123,041 | $ | 115,198 | Jul-15 | |||||||
Preferred equity | 70,000 | 9,954 | 9,940 | Nov-17 | ||||||||||
Preferred equity(3) | — | — | 25,896 | |||||||||||
Preferred equity(2)(4) | — | — | 218,330 | |||||||||||
$ | 620,000 | $ | 132,995 | $ | 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. | |||||||||||||
-4 | This preferred equity investment was redeemed in November 2014. | |||||||||||||
At December 31, 2014 and 2013, all preferred equity investments were performing in accordance with the terms of the loan agreements. | ||||||||||||||
Other Investments | ||||||||||||||
Other investments pertained to investments accounted for under the equity method of accounting. | ||||||||||||||
In March 2014, we closed on a $40.0 million preferred equity investment, which is due to mature in March 2016, subject to three one-year extension options and a two-year option for the last extension. As of December 31, 2014, the book value of this investment was $40.2 million. As a result of meeting the criteria of a real estate investment under the guidance for Acquisition, Development and Construction arrangements, we have accounted for this wholly owned investment under the equity method of accounting. | ||||||||||||||
In January 2013, we, along with our joint venture partner, formed a joint venture that holds a preferred equity interest in an entity that owns a retail property located in Manhattan. The underlying preferred equity investment bore interest at a rate of 8.75% per annum. We held a 40.0% interest or $20.0 million initial investment in the joint venture. In December 2013, the preferred equity investment was redeemed and its net proceeds were distributed to us and our joint venture partner. | ||||||||||||||
Prior to July 2012, we also held a 30.0% interest in a joint venture that owned a property located at One Court Square, Long Island City, New York. In November 2011, we recorded a $5.8 million impairment charge in connection with the expected sale of this investment. In July 2012, the property was sold for $481.1 million, which included the assumption of $315.0 million of existing debt by the purchaser. We recognized a gain of $1.0 million on sale of this property. |
Mortgages_and_Other_Loans_Paya
Mortgages and Other Loans Payable | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Mortgage Note and Other Loans Payable | |||||||||||||
Mortgages and Other Loans Payable | Mortgages and Other Loans Payable | ||||||||||||
The first mortgages and other loans payable collateralized by the property, assignment of leases and investment at December 31, 2014 and 2013, respectively, were as follows (amounts in thousands): | |||||||||||||
Property | Interest | Maturity Date | 31-Dec-14 | 31-Dec-13 | |||||||||
Rate(1) | |||||||||||||
919 Third Avenue(2) | 5.12 | % | Jun-23 | $ | 500,000 | $ | 500,000 | ||||||
Other loan payable(3) | — | 50,000 | |||||||||||
16 Court Street(4) | — | 79,243 | |||||||||||
609 Partners, LLC(5) | — | 23 | |||||||||||
125 Park Avenue(6) | — | 146,250 | |||||||||||
625 Madison Avenue(7) | — | 120,830 | |||||||||||
$ | 500,000 | $ | 896,346 | ||||||||||
____________________________________________________________________ | |||||||||||||
-1 | Effective weighted average interest rate for the year ended December 31, 2014. | ||||||||||||
-2 | We own a 51.0% controlling interest in the joint venture that is the borrower on this loan. | ||||||||||||
-3 | In November 2014, we repaid the 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. | ||||||||||||
-6 | In October 2014, we repaid the loan at maturity. | ||||||||||||
-7 | In December 2014, we prepaid the loan and incurred a loss on early extinguishment of debt of $6.9 million. | ||||||||||||
The gross book value of the property and preferred equity investment collateralizing the mortgage note and other loans payable was $1.3 billion and $2.2 billion at December 31, 2014 and 2013, respectively. |
Corporate_Indebtedness
Corporate Indebtedness | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 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 facility by $383.0 million to $783.0 million, decreased the interest-rate margin applicable to the term loan portion of the facility by 25 basis points and extended the maturity of the term loan portion of the facility from March 30, 2018 to June 30, 2019. In November 2014, we increased the term loan portion of the facility by $50.0 million to $833.0 million. As of December 31, 2014, the 2012 credit facility, as amended, consists of a $1.2 billion revolving credit facility, or the revolving credit facility, and an $833.0 million term loan, or the term loan facility. In January 2015, we entered into a second amended and restated credit agreement, which decreased the interest-rate margin and facility fee applicable to the revolving credit facility by 20 basis points and five basis points, respectively, and extended the maturity date of the revolving credit facility to March 29, 2019 with an as-of-right extension through March 29, 2020. 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. | ||||||||||||||||||||||||
As of December 31, 2014, the 2012 credit facility bore 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 the senior unsecured long term indebtedness of ROP. At December 31, 2014, the applicable spread was 145 basis points for revolving credit facility and 140 basis points for the term loan facility. At December 31, 2014, the effective interest rate was 1.61% for the revolving credit facility and 1.67% 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 the senior unsecured long term indebtedness of ROP. As of December 31, 2014, the facility fee was 30 basis points. As of December 31, 2014, we had $113.2 million of outstanding letters of credit, $385.0 million drawn under the revolving credit facility and $833.0 million outstanding under the term loan facility, with total undrawn capacity of $701.8 million under the 2012 credit facility. | ||||||||||||||||||||||||
In connection with the amendment of the 2012 credit facility, we incurred debt origination and other loan costs of $3.0 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. None of SL Green's other subsidiaries are obligor under the 2012 credit facility. | ||||||||||||||||||||||||
The 2012 credit facility includes certain restrictions and covenants (see Restrictive Covenants below). | ||||||||||||||||||||||||
2011 Revolving Credit Facility | ||||||||||||||||||||||||
In November 2012, the 2012 credit facility replaced our $1.5 billion revolving credit facility, or the 2011 revolving credit facility, which was terminated concurrently with the entering into the 2012 credit facility. The 2011 revolving credit facility bore interest at a spread over LIBOR ranging from 100 basis points to 185 basis points, based on the credit rating assigned to the senior unsecured long-term indebtedness of ROP, and required to pay quarterly in arrears a 17.5 to 45 basis point facility fee on the total commitments under the 2011 revolving credit facility. | ||||||||||||||||||||||||
Senior Unsecured Notes | ||||||||||||||||||||||||
The following table sets forth our senior unsecured notes and other related disclosures as of December 31, 2014 and 2013, respectively, by scheduled maturity date (dollars in thousands): | ||||||||||||||||||||||||
Issuance | December 31, 2014 Unpaid Principal Balance | December 31, 2014 Accreted Balance | December 31, 2013 Accreted Balance | Coupon | Effective | Term | Maturity | |||||||||||||||||
Rate(1) | Rate | (in Years) | ||||||||||||||||||||||
March 31, 2006 | $ | 255,308 | $ | 255,250 | $ | 255,206 | 6 | % | 6 | % | 10 | March 31, 2016 | ||||||||||||
August 5, 2011(2) | 250,000 | 249,744 | 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 31, 2004(4) | — | — | 75,898 | |||||||||||||||||||||
$ | 955,315 | $ | 955,001 | $ | 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 | Issued by SL Green, the Operating Partnership and ROP, as 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 December 31, 2014 and 2013, we were in compliance with all such covenants. | ||||||||||||||||||||||||
Principal Maturities | ||||||||||||||||||||||||
Combined aggregate principal maturities of our mortgage, 2012 credit facility and senior unsecured notes as of December 31, 2014, including as-of-right extension options and put options, were as follows (in thousands): | ||||||||||||||||||||||||
Scheduled | Principal | Revolving | Unsecured Term Loan | Senior | Total | |||||||||||||||||||
Amortization | Repayments | Credit | Unsecured | |||||||||||||||||||||
Facility | Notes | |||||||||||||||||||||||
2015 | $ | — | $ | — | $ | — | $ | — | $ | 7 | $ | 7 | ||||||||||||
2016 | 3,566 | — | — | — | 255,308 | 258,874 | ||||||||||||||||||
2017 | 7,411 | — | — | — | — | 7,411 | ||||||||||||||||||
2018 | 7,799 | — | 385,000 | — | 250,000 | 642,799 | ||||||||||||||||||
2019 | 8,207 | — | — | 833,000 | — | 841,207 | ||||||||||||||||||
Thereafter | 31,423 | 441,594 | — | — | 450,000 | 923,017 | ||||||||||||||||||
$ | 58,406 | $ | 441,594 | $ | 385,000 | $ | 833,000 | $ | 955,315 | $ | 2,673,315 | |||||||||||||
Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands): | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Interest expense | $ | 120,076 | $ | 123,464 | $ | 120,346 | ||||||||||||||||||
Interest income | (70 | ) | (6 | ) | (10 | ) | ||||||||||||||||||
Interest expense, net | $ | 120,006 | $ | 123,458 | $ | 120,336 | ||||||||||||||||||
Interest capitalized | $ | 3,753 | $ | — | $ | — | ||||||||||||||||||
Partners_Capital
Partners' Capital | 12 Months Ended |
Dec. 31, 2014 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital | Partners' Capital |
Since consummation of the Merger on 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. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
We are required to disclose fair value information with regard to our financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practical to estimate fair value. The 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 consist 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. Our 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. | ||||||||||||||||
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, and 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 instrument 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 December 31, 2014 and 2013 (in thousands): | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Preferred equity investments | $ | 132,995 | (2) | -1 | $ | 369,364 | -1 | |||||||||
Fixed rate debt | $ | 1,485,001 | $ | 1,616,490 | $ | 1,877,895 | $ | 1,993,259 | ||||||||
Variable rate debt | 1,188,000 | 1,230,470 | 669,243 | 684,871 | ||||||||||||
$ | 2,673,001 | $ | 2,846,960 | $ | 2,547,138 | $ | 2,678,130 | |||||||||
______________________________________________________________________ | ||||||||||||||||
-1 | At December 31, 2014, preferred equity investments had an estimated fair value ranging between $146.3 million and $166.2 million. At December 31, 2013, preferred equity investments had an estimated fair value of $400.0 million. | |||||||||||||||
-2 | Excludes one investment with a book value of $40.2 million as of December 31, 2014, which we accounted for under the equity method accounting as a result of meeting the criteria of a real estate investment under the guidance for Acquisition, Development and Construction arrangements. | |||||||||||||||
Disclosure about fair value of financial instruments was based on pertinent information available to us as of December 31, 2014 and 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. |
Financial_Instruments_Derivati
Financial Instruments: Derivatives and Hedging | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 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 sheets 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 hedge 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 December 31, 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 December 31, 2014 based on Level 2 inputs. The notional value is an indication of the extent of our involvement in that instrument 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 | |||||||||||||||||||||||||||||||||||||
Interest Rate Swap | $ | 30,000 | 2.295 | % | Jul-10 | Jun-16 | Other Liabilities | $ | (774 | ) | |||||||||||||||||||||||||||||||
Gains and losses on terminated hedges are included in the accumulated other comprehensive loss, and are recognized into earnings over the term of the related senior unsecured notes. As of December 31, 2014 and 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 $2.3 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 12 months. | |||||||||||||||||||||||||||||||||||||||||
The following table presents the effect of our derivative financial instrument that is designated and qualify as a hedging instrument on the consolidated statements of income for the years ended December 31, 2014, 2013 and 2012, respectively (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Amount of Loss | Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Amount of Loss | Location of Gain (Loss) 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) | ||||||||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||
Derivative | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Interest Rate Swap | $ | (135 | ) | $ | — | $ | (794 | ) | Interest expense | $ | 1,010 | $ | 944 | $ | 986 | Interest expense | $ | 4 | $ | 3 | $ | 3 | |||||||||||||||||||
Rental_Income
Rental Income | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Rental Income | Rental Income | ||||
We are the lessor and the sublessor to tenants under operating leases with expiration dates ranging from January 1, 2015 to 2036. The minimum rental amounts due under the leases are generally either subject to scheduled fixed increases or adjustments. The leases generally also require that the tenants reimburse us for increases in certain operating costs and real estate taxes above their base year costs. Approximate future minimum rents to be received over the next five years and thereafter for non-cancelable operating leases in effect at December 31, 2014 for the properties, including consolidated joint venture properties, are as follows (in thousands): | |||||
2015 | $ | 512,345 | |||
2016 | 489,993 | ||||
2017 | 454,877 | ||||
2018 | 426,272 | ||||
2019 | 401,054 | ||||
Thereafter | 1,804,385 | ||||
$ | 4,088,926 | ||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 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. Income earned from profit participation, which is included in other income on the consolidated statements of income, was $3.3 million, $3.0 million and $3.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. We also recorded expenses of $8.3 million, $8.9 million and $7.8 million for the years ended December 31, 2014, 2013 and 2012, 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. Such amount was approximately $9.3 million, $8.6 million and $7.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Insurance | |
We obtained insurance coverage through an insurance program administered by SL Green. In connection with this program, we incurred insurance expense of approximately $6.1 million, $5.8 million and $5.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Benefit_Plans
Benefit Plans | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
Benefit Plans | Benefit Plans | |||||||||||
The building employees are covered by multi-employer defined benefit pension plans and post-retirement health and welfare plans. We participate in the Building Service 32BJ, or Union, Pension Plan and Health Plan. The Pension Plan is a multi-employer, non-contributory defined benefit pension plan that was established under the terms of collective bargaining agreements between the Service Employees International Union, Local 32BJ, the Realty Advisory Board on Labor Relations, Inc. and certain other employees. This Pension Plan is administered by a joint board of trustees consisting of union trustees and employer trustees and operates under employer identification number 13-1879376. The Pension Plan year runs from July 1 to June 30. Employers contribute to the Pension Plan at a fixed rate on behalf of each covered employee. Separate actuarial information regarding such pension plans is not made available to the contributing employers by the union administrators or trustees, since the plans do not maintain separate records for each reporting unit. However, on September 28, 2012, September 28, 2013 and September 30, 2014, the actuary certified that for the plan years beginning July 1, 2012, July 1, 2013 and July 1, 2014, respectively, the Pension Plan was in critical status under the Pension Protection Act of 2006. The Pension Plan trustees adopted a rehabilitation plan consistent with this requirement. No surcharges have been paid to the Pension Plan as of December 31, 2014. For the years ended December 31, 2014, 2013 and 2012, the Pension Plan received contributions from employers totaling $224.5 million, $221.9 million and $212.7 million, respectively. | ||||||||||||
The Health Plan was established under the terms of collective bargaining agreements between the Union, the Realty Advisory Board on Labor Relations, Inc. and certain other employers. The Health Plan provides health and other benefits to eligible participants employed in the building service industry who are covered under collective bargaining agreements, or other written agreements, with the Union. The Health Plan is administered by a Board of Trustees with equal representation by the employers and the Union and operates under employer identification number 13-2928869. The Health Plan receives contributions in accordance with collective bargaining agreements or participation agreements. Generally, these agreements provide that the employers contribute to the Health Plan at a fixed rate on behalf of each covered employee. For the years ended December 31 2013 and 2012, the Health Plan received contributions from employers totaling $923.5 million and $893.3 million, respectively. For the year ended December 31, 2014, information related to total contributions received by the Health Plan was not available at the time of filing. Our contributions to the Health Plan represent less than 5.0% of total contributions to the plan. | ||||||||||||
Contributions we made to the multi-employer plans for the years ended December 31, 2014, 2013 and 2012 are included in the table below (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
Benefit Plan | 2014 | 2013 | 2012 | |||||||||
Pension Plan | $ | 1,426 | $ | 1,353 | $ | 1,197 | ||||||
Health Plan | 4,283 | 4,179 | 3,764 | |||||||||
Other plans | 2,930 | 2,874 | 2,790 | |||||||||
Total plan contributions | $ | 8,639 | $ | 8,406 | $ | 7,751 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | Commitments and Contingencies | ||||
Legal Proceedings | |||||
As of December 31, 2014, we were not involved in any material litigation nor, to management's knowledge, was any material litigation threatened against us or our portfolio other than routine litigation arising in the ordinary course of business or litigation that is adequately covered by insurance. | |||||
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 property located at 461 Fifth Avenue operates under a ground lease ($2.1 million of ground rent annually) with a term expiration date of 2027 and with two options to renew for an additional 21 years each, followed by a third option for 15 years. We also have an option to purchase the ground lease for a fixed price on a specific date. | |||||
The property located at 625 Madison Avenue, which was transferred to ROP during 2014, operates under a ground lease ($4.6 million of ground rent annually) with a term expiration date of 2022 and with two options to renew for an additional 23 years. | |||||
The property located at 1185 Avenue of the Americas operates under a ground lease ($6.9 million of ground rent annually) with a term expiration of 2043 and with an option to renew for an additional 23 years. | |||||
The following is a schedule of future minimum lease payments under non-cancellable operating leases with initial terms in excess of one year as of December 31, 2014 (in thousands): | |||||
Non-cancellable | |||||
operating leases | |||||
2015 | $ | 15,086 | |||
2016 | 15,086 | ||||
2017 | 15,086 | ||||
2018 | 15,086 | ||||
2019 | 15,086 | ||||
Thereafter | 273,964 | ||||
Total minimum lease payments | $ | 349,394 | |||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Information | Segment Information | |||||||||||
We are engaged in acquiring, owning, managing and leasing commercial properties in Manhattan, Brooklyn, Westchester County, Connecticut and New Jersey 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 are generated from tenant rents and 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 years ended December 31, 2014, 2013 and 2012 and selected asset information as of December 31, 2014 and 2013, regarding our operating segments are as follows (in thousands): | ||||||||||||
Real Estate | Preferred | Total | ||||||||||
Segment | Equity | Company | ||||||||||
Segment | ||||||||||||
Total revenues: | ||||||||||||
Years ended: | ||||||||||||
31-Dec-14 | $ | 643,096 | $ | 35,141 | $ | 678,237 | ||||||
31-Dec-13 | 597,681 | 43,226 | 640,907 | |||||||||
31-Dec-12 | 561,354 | 9,497 | 570,851 | |||||||||
Income from continuing operations: | ||||||||||||
Years ended: | ||||||||||||
31-Dec-14 | $ | 30,873 | $ | 31,705 | $ | 62,578 | ||||||
31-Dec-13 | 27,934 | 40,118 | 68,052 | |||||||||
31-Dec-12 | 26,376 | 8,372 | 34,748 | |||||||||
Total assets | ||||||||||||
As of: | ||||||||||||
31-Dec-14 | $ | 6,211,574 | $ | 173,300 | $ | 6,384,874 | ||||||
31-Dec-13 | 6,101,484 | 370,532 | 6,472,016 | |||||||||
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 and provision for loan losses for the preferred equity segment. Interest costs for the preferred equity segment are imputed assuming the portfolio is 100% leveraged by our 2012 credit facility borrowing cost. We also allocate loan loss reserves, net of recoveries and transaction related costs to the preferred equity segment. We do not allocate marketing, general and administrative expenses to the preferred equity 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. |
Quarterly_Financial_Data_of_th
Quarterly Financial Data of the Company (unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Financial Data of the Company (unaudited) | Quarterly Financial Data of the Company (unaudited) | |||||||||||||||
Summarized quarterly financial data for the years ended December 31, 2014 and 2013, which is reflective of the properties transferred to us by SL Green and the reclassification of the properties sold during 2014 and 2013 as discontinued operations (see Note 4, "Property Dispositions"), was as follows (in thousands): | ||||||||||||||||
2014 Quarter Ended | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Total revenues | $ | 174,735 | $ | 171,187 | $ | 167,254 | $ | 165,061 | ||||||||
Income from continuing operations before equity in net income from unconsolidated joint ventures, loss on extinguishment of debt, net (loss) income from discontinued operations, (loss) gain on sale of discontinued operations | $ | 21,077 | $ | 16,203 | $ | 16,400 | $ | 13,473 | ||||||||
Equity in net income from unconsolidated joint ventures | 848 | 868 | 1,094 | — | ||||||||||||
Loss on extinguishment of debt | (6,866 | ) | — | (519 | ) | — | ||||||||||
Net (loss) income from discontinued operations | — | (58 | ) | 1,348 | 706 | |||||||||||
(Loss) gain on sale of discontinued operations | — | (250 | ) | 117,829 | — | |||||||||||
Net income | 15,059 | 16,763 | 136,152 | 14,179 | ||||||||||||
Net income attributable to noncontrolling interests in other partnerships | (938 | ) | (841 | ) | (801 | ) | (61 | ) | ||||||||
Net income attributable to ROP common unitholder | $ | 14,121 | $ | 15,922 | $ | 135,351 | $ | 14,118 | ||||||||
2013 Quarter Ended | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Total revenues | $ | 170,766 | $ | 153,330 | $ | 160,171 | $ | 156,640 | ||||||||
Income from continuing operations before equity in net income from unconsolidated joint ventures, loss on extinguishment of debt, net income from discontinued operations, (loss) gain on sale of discontinued operations | $ | 19,291 | $ | 3,623 | $ | 22,062 | $ | 19,210 | ||||||||
Equity in net income from unconsolidated joint ventures | 2,615 | 480 | 481 | 366 | ||||||||||||
Loss on extinguishment of debt | — | — | (10 | ) | (66 | ) | ||||||||||
Net income from discontinued operations | 175 | 1,622 | 3,147 | 963 | ||||||||||||
(Loss) gain on sale of discontinued operations | (31 | ) | 13,787 | — | — | |||||||||||
Net income | 22,050 | 19,512 | 25,680 | 20,473 | ||||||||||||
Net income attributable to noncontrolling interests in other partnerships | (689 | ) | (1,399 | ) | (1,599 | ) | (1,513 | ) | ||||||||
Net income attributable to ROP common unitholder | $ | 21,361 | $ | 18,113 | $ | 24,081 | $ | 18,960 | ||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
In January 2015, we closed on the modification and extension of the $1.2 billion revolving credit facility portion of our 2012 credit facility, which decreased the interest-rate margin and facility fee applicable to the revolving credit facility portion of the facility by 20 basis points and 5 basis points, respectively, and extended the maturity date of the revolving credit facility portion of the facility to March 29, 2019 with an as-of-right extension through March 29, 2020. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||
Description | Balance at | Additions | Uncollectible | Balance at | |||||||||||||
Beginning of | Charged Against | Accounts | End of Year | ||||||||||||||
Year | Operations/Recovery | Written-off | |||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
Tenant and other receivables—allowance | $ | 5,323 | $ | 5,573 | $ | (5,198 | ) | $ | 5,698 | ||||||||
Deferred rent receivable—allowance | 17,661 | 2,913 | (4,000 | ) | 16,574 | ||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Tenant and other receivables—allowance | $ | 5,497 | $ | 4,242 | $ | (4,416 | ) | $ | 5,323 | ||||||||
Deferred rent receivable—allowance | 18,812 | 4,345 | (5,496 | ) | 17,661 | ||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Tenant and other receivables—allowance | $ | 3,837 | $ | 4,801 | $ | (3,141 | ) | $ | 5,497 | ||||||||
Deferred rent receivable—allowance | 17,545 | 4,044 | (2,777 | ) | 18,812 | ||||||||||||
Schedule_III_Real_Estate_And_A
Schedule III - Real Estate And Accumulated Depreciation | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||
Schedule III - Real Estate And Accumulated Depreciation | Schedule III—Real Estate And Accumulated Depreciation | |||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | Column G | Column H | Column I | ||||||||||||||||||||||||||||||||||
Initial Cost | Cost Capitalized | Gross Amount at Which Carried at | ||||||||||||||||||||||||||||||||||||||||
Subsequent | Close of Period | |||||||||||||||||||||||||||||||||||||||||
To Acquisition | ||||||||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Building & | Land | Building & | Land | Building & | Total | Accumulated | Date of | Date | Life | ||||||||||||||||||||||||||||||
Improvements | Improvements | Improvements | Depreciation | Construction | Acquired | on Which | ||||||||||||||||||||||||||||||||||||
Depreciation | ||||||||||||||||||||||||||||||||||||||||||
is Computed | ||||||||||||||||||||||||||||||||||||||||||
810 Seventh Avenue(1) | $ | — | $ | 114,077 | $ | 476,386 | $ | — | $ | 54,441 | $ | 114,077 | $ | 530,827 | $ | 644,904 | $ | 114,957 | 1970 | Jan-07 | Various | |||||||||||||||||||||
461 Fifth Avenue(1) | — | — | 62,695 | — | 9,626 | — | 72,321 | 72,321 | 21,838 | 1988 | Oct-03 | Various | ||||||||||||||||||||||||||||||
750 Third Avenue(1) | — | 51,093 | 205,972 | — | 35,951 | 51,093 | 241,923 | 293,016 | 70,362 | 1958 | Jul-04 | Various | ||||||||||||||||||||||||||||||
919 Third Avenue(1)(2) | 500,000 | 223,529 | 1,033,198 | — | 19,239 | 223,529 | 1,052,437 | 1,275,966 | 216,685 | 1970 | Jan-07 | Various | ||||||||||||||||||||||||||||||
555 W. 57th Street(1) | — | 18,846 | 78,704 | — | 47,933 | 18,846 | 126,637 | 145,483 | 48,659 | 1971 | Jan-99 | Various | ||||||||||||||||||||||||||||||
1185 Avenue of the Americas(1) | — | — | 728,213 | — | 35,260 | — | 763,473 | 763,473 | 175,368 | 1969 | Jan-07 | Various | ||||||||||||||||||||||||||||||
1350 Avenue of the Americas(1) | — | 91,038 | 380,744 | — | 29,132 | 91,038 | 409,876 | 500,914 | 90,325 | 1966 | Jan-07 | Various | ||||||||||||||||||||||||||||||
1100 King Street—1-6 International Drive(3) | — | 49,392 | 104,376 | 2,473 | 19,385 | 51,865 | 123,761 | 175,626 | 31,003 | 1983/1986 | Jan-07 | Various | ||||||||||||||||||||||||||||||
520 White Plains Road(3) | — | 6,324 | 26,096 | — | 4,785 | 6,324 | 30,881 | 37,205 | 7,755 | 1979 | Jan-07 | Various | ||||||||||||||||||||||||||||||
115-117 Stevens Avenue(3) | — | 5,933 | 23,826 | — | 6,334 | 5,933 | 30,160 | 36,093 | 7,967 | 1984 | Jan-07 | Various | ||||||||||||||||||||||||||||||
100 Summit Lake Drive(3) | — | 10,526 | 43,109 | — | 7,213 | 10,526 | 50,322 | 60,848 | 11,863 | 1988 | Jan-07 | Various | ||||||||||||||||||||||||||||||
200 Summit Lake Drive(3) | — | 11,183 | 47,906 | — | 7,217 | 11,183 | 55,123 | 66,306 | 12,600 | 1990 | Jan-07 | Various | ||||||||||||||||||||||||||||||
500 Summit Lake Drive(3) | — | 9,777 | 39,048 | — | 5,643 | 9,777 | 44,691 | 54,468 | 9,495 | 1986 | Jan-07 | Various | ||||||||||||||||||||||||||||||
140 Grand Street(3) | — | 6,865 | 28,264 | — | 4,606 | 6,865 | 32,870 | 39,735 | 7,734 | 1991 | Jan-07 | Various | ||||||||||||||||||||||||||||||
360 Hamilton Avenue(3) | — | 29,497 | 118,250 | — | 12,851 | 29,497 | 131,101 | 160,598 | 29,031 | 2000 | Jan-07 | Various | ||||||||||||||||||||||||||||||
7 Landmark Square(4) | — | 2,088 | 7,748 | (367 | ) | (133 | ) | 1,721 | 7,615 | 9,336 | 600 | 2007 | Jan-07 | Various | ||||||||||||||||||||||||||||
680 Washington Boulevard(2)(4) | — | 11,696 | 45,364 | — | 4,561 | 11,696 | 49,925 | 61,621 | 11,118 | 1989 | Jan-07 | Various | ||||||||||||||||||||||||||||||
750 Washington Boulevard(2)(4) | — | 16,916 | 68,849 | — | 7,433 | 16,916 | 76,282 | 93,198 | 16,313 | 1989 | Jan-07 | Various | ||||||||||||||||||||||||||||||
1010 Washington Boulevard(4) | — | 7,747 | 30,423 | — | 5,058 | 7,747 | 35,481 | 43,228 | 7,695 | 1988 | Jan-07 | Various | ||||||||||||||||||||||||||||||
1055 Washington Boulevard(4) | — | 13,516 | 53,228 | — | 3,492 | 13,516 | 56,720 | 70,236 | 12,515 | 1987 | Jun-07 | Various | ||||||||||||||||||||||||||||||
400 Summit Lake Drive(3) | — | 38,889 | — | 285 | 1 | 39,174 | 1 | 39,175 | 1 | - | Jan-07 | N/A | ||||||||||||||||||||||||||||||
609 Fifth Avenue(1) | — | 36,677 | 145,954 | — | 7,814 | 36,677 | 153,768 | 190,445 | 32,939 | 1925 | Jun-06 | Various | ||||||||||||||||||||||||||||||
110 East 42nd Street(1) | — | 34,000 | 46,411 | — | 13,882 | 34,000 | 60,293 | 94,293 | 9,080 | 1921 | May-11 | Various | ||||||||||||||||||||||||||||||
304 Park Avenue(1) | — | 54,189 | 75,619 | 300 | 6,336 | 54,489 | 81,955 | 136,444 | 7,465 | 1930 | Jun-12 | Various | ||||||||||||||||||||||||||||||
635 Sixth Avenue(1) | — | 24,180 | 37,158 | 163 | 38,104 | 24,343 | 75,262 | 99,605 | — | 1902 | Sep-12 | Various | ||||||||||||||||||||||||||||||
641 Sixth Avenue(1) | — | 45,668 | 67,316 | 308 | 793 | 45,976 | 68,109 | 114,085 | 5,076 | 1902 | Sep-12 | Various | ||||||||||||||||||||||||||||||
315 West 33rd Street(1) | — | 195,834 | 164,429 | — | 3,180 | 195,834 | 167,609 | 363,443 | 5,396 | 2000-2001 | Nov-13 | Various | ||||||||||||||||||||||||||||||
16 Court(5)(6) | — | 19,217 | 63,210 | — | 4,954 | 19,217 | 68,164 | 87,381 | 4,604 | 1927-1928 | Apr-13 | Various | ||||||||||||||||||||||||||||||
131-137 Spring Street(1)(5) | — | 27,021 | 105,342 | 154 | 3,384 | 27,175 | 108,726 | 135,901 | 5,606 | 1891 | Dec-12 | Various | ||||||||||||||||||||||||||||||
125 Chubb Way(5)(7) | — | 5,884 | 25,958 | — | 23,832 | 5,884 | 49,790 | 55,674 | 5,263 | 2008 | Jan-08 | Various | ||||||||||||||||||||||||||||||
115 Spring Street(1) | — | 15,938 | 37,309 | — | — | 15,938 | 37,309 | 53,247 | — | 1900 | Jul-14 | Various | ||||||||||||||||||||||||||||||
635 Madison Avenue(1) | — | 153,745 | — | — | — | 153,745 | — | 153,745 | — | - | Sep-14 | Various | ||||||||||||||||||||||||||||||
125 Park Avenue(1)(5) | — | 120,900 | 189,714 | — | 42,165 | 120,900 | 231,879 | 352,779 | 34,869 | 1923 | Oct-10 | Various | ||||||||||||||||||||||||||||||
625 Madison Ave(1)(5) | — | — | 246,673 | — | 35,576 | — | 282,249 | 282,249 | 77,982 | 1956 | Oct-04 | Various | ||||||||||||||||||||||||||||||
102 Greene Street(1) | — | 11,288 | 20,963 | — | — | 11,288 | 20,963 | 32,251 | 131 | 1910 | Nov-14 | Various | ||||||||||||||||||||||||||||||
Other(8) | — | 1,130 | — | 80 | 4,693 | 1,210 | 4,693 | 5,903 | — | Various | ||||||||||||||||||||||||||||||||
$ | 500,000 | $ | 1,464,603 | $ | 4,828,455 | $ | 3,396 | $ | 504,741 | $ | 1,467,999 | $ | 5,333,196 | $ | 6,801,195 | $ | 1,092,295 | |||||||||||||||||||||||||
____________________________________________________________________ | ||||||||||||||||||||||||||||||||||||||||||
-1 | Property located in New York, New York. | |||||||||||||||||||||||||||||||||||||||||
-2 | We own a 51% interest in this property. | |||||||||||||||||||||||||||||||||||||||||
-3 | Property located in Westchester County, New York. | |||||||||||||||||||||||||||||||||||||||||
-4 | Property located in Connecticut. | |||||||||||||||||||||||||||||||||||||||||
-5 | Properties that were transferred in 2014. | |||||||||||||||||||||||||||||||||||||||||
-6 | Property located in Brooklyn, New York. | |||||||||||||||||||||||||||||||||||||||||
-7 | Property located in New Jersey. | |||||||||||||||||||||||||||||||||||||||||
-8 | Other includes tenant improvements, capitalized interest and corporate improvements. | |||||||||||||||||||||||||||||||||||||||||
The changes in real estate for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 6,556,482 | $ | 6,178,574 | $ | 5,691,459 | ||||||||||||||||||||||||||||||||||||
Acquisitions | 208,608 | 479,236 | 429,330 | |||||||||||||||||||||||||||||||||||||||
Improvements | 93,986 | 107,385 | 59,428 | |||||||||||||||||||||||||||||||||||||||
Retirements/disposals | (57,881 | ) | (208,713 | ) | (1,643 | ) | ||||||||||||||||||||||||||||||||||||
Balance at end of year | $ | 6,801,195 | $ | 6,556,482 | $ | 6,178,574 | ||||||||||||||||||||||||||||||||||||
The aggregate cost of land, buildings and improvements, before depreciation, for Federal income tax purposes at December 31, 2014 was approximately $4.8 billion (unaudited). | ||||||||||||||||||||||||||||||||||||||||||
The changes in accumulated depreciation, exclusive of amounts relating to equipment, autos, and furniture and fixtures, for the years ended December 31, 2014, 2013 and 2012, are as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 953,093 | $ | 821,463 | $ | 675,783 | ||||||||||||||||||||||||||||||||||||
Depreciation for year | 162,229 | 156,912 | 146,897 | |||||||||||||||||||||||||||||||||||||||
Retirements/disposals | (23,027 | ) | (25,282 | ) | (1,217 | ) | ||||||||||||||||||||||||||||||||||||
Balance at end of year | $ | 1,092,295 | $ | 953,093 | $ | 821,463 | ||||||||||||||||||||||||||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 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 the 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 | ||
Real estate properties are presented at cost less accumulated depreciation and amortization. Costs directly related to the development or redevelopment of properties are capitalized. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives. | |||
A property to be disposed of is reported at the lower of its carrying value or its estimated fair value, less its cost to sell. Once an asset is held for sale, depreciation expense is no longer recorded and the historic results are reclassified as discontinued operations. See Note 4, "Property Dispositions." | |||
Properties are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: | |||
Category | Term | ||
Building (fee ownership) | 40 years | ||
Building improvements | shorter of remaining life of the building or useful life | ||
Building (leasehold interest) | lesser of 40 years or remaining term of the lease | ||
Property under capital lease | remaining lease term | ||
Furniture and fixtures | four to seven years | ||
Tenant improvements | shorter of remaining term of the lease or useful life | ||
Depreciation expense (including amortization of the capital lease asset) amounted to $180.5 million, $166.3 million and $145.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||
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 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 do not believe that the values of any of our properties were impaired at December 31, 2014. | |||
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 incur a variety of costs in the development and leasing of our properties. After determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. The costs of land and building under development include specifically identifiable costs. The capitalized costs include, but are not limited to, pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs and other costs incurred during the period of development. We consider a construction project as substantially completed and held available for occupancy upon the completion of tenant improvements, but no later than one year from cessation of major construction activity. We cease capitalization on the portions substantially completed and occupied or held available for occupancy, and capitalize only those costs associated with the portions under construction. | |||
Results of operations of properties acquired are included in the consolidated statements of income from the date of acquisition. | |||
We recognize the assets acquired, liabilities assumed (including contingencies) and any noncontrolling interests in an acquired entity at their fair values on the acquisition date. We expense acquisition-related transaction costs as incurred, which are included in transaction related costs on our consolidated statements of income. | |||
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 the 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 ranges 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. | |||
Investment in Unconsolidated Joint Ventures | Investment in Unconsolidated Joint Ventures | ||
We account for our investment in the unconsolidated joint venture under the equity method of accounting in cases where we exercise significant influence, but do not control the entity and are not considered to be the primary beneficiary. We consolidate those joint ventures that we control or which are VIEs and where we are considered to be the primary beneficiary. In all the joint ventures, the rights of the joint venture partner are both protective as well as participating. Unless we are determined to be the primary beneficiary in a VIE, these participating rights preclude us from consolidating these non-VIE entities. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for equity in net income (loss) and cash contributions and distributions. Equity in net income (loss) from unconsolidated joint ventures is allocated based on our ownership or economic interest in the joint venture. When a capital event (as defined in each joint venture agreement) such as a refinancing occurs, if return thresholds are met, future equity income will be allocated at our increased economic interest. We recognize incentive income from unconsolidated real estate joint ventures as income to the extent it is earned and not subject to a clawback feature. Distributions we receive from unconsolidated real estate joint ventures in excess of our basis in the investment are recorded as offsets to our investment balance if we remain liable for future obligations of the joint venture or may otherwise be committed to provide future additional financial support. None of the joint venture debt is recourse to us. See Note 5, "Preferred Equity and Other Investments." | |||
We assess our investment in our unconsolidated joint venture for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value. We evaluate our equity investment for impairment based on the joint venture's projected discounted cash flows. We do not believe that the value of our equity investment was impaired at December 31, 2014. | |||
We may originate loans for real estate acquisition, development and construction, where we expect to receive some or all of the residual profit from such projects. When the risk and rewards of these arrangements are essentially the same as an investor or joint venture partner, we account for these arrangements as real estate investments under the equity method of accounting for investments. Otherwise, we account for these arrangements consistent with our loan accounting for our debt and preferred equity investments. | |||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||
We consider all highly liquid investments with maturity of three months or less when purchased to be cash equivalents. | |||
Restricted Cash | Restricted Cash | ||
Restricted cash primarily consists of security deposits held on behalf of our tenants, interest reserves, as well as capital improvement and real estate tax escrows required under certain loan agreements. | |||
Deferred Lease Costs | Deferred Lease Costs | ||
Deferred lease costs consist of fees and direct costs incurred to initiate and renew operating leases and are amortized on a straight-line basis over the related lease term. | |||
Deferred Financing Costs | Deferred Financing Costs | ||
Deferred financing costs represent commitment fees, legal, title and other third party costs associated with obtaining commitments for financing which result in a closing of such financing. These costs are amortized over the terms of the respective agreements. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financing transactions, which do not close, are expensed in the period in which it is determined that the financing will not close. | |||
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. Several of the debt and 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 is 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. For investments acquired at a discount for credit quality, the difference between contractual cash flows and expected cash flows at acquisition is not accreted. Anticipated exit fees, the collection of which 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. | |||
Asset management fees are recognized on a straight-line basis over the term of the asset management agreement. | |||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | ||
We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our tenants to make required payments. If the financial condition of a specific tenant were to deteriorate, resulting in an impairment of its ability to make payments, additional allowances may be required. | |||
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 losses 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 additional loan reserves recorded during the years ended December 31, 2014, 2013 and 2012. We recorded recoveries of $0.5 million during the year ended December 31, 2012 in connection with the sale of our investments. This is included in loan loss reserves, net of recoveries on the consolidated statements of income. | |||
Preferred equity investments held for sale are carried at the lower of cost or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale. In such situations, the investment will be reclassified at its net carrying value to preferred equity investments held to maturity. For these reclassified investments, the difference between the current carrying value and the expected cash to be collected at maturity will be accreted into income over the remaining term of the investment. | |||
Rent Expense | Rent Expense | ||
Rent expense is recognized on a straight-line basis over the initial term of the lease. The excess of the rent expense recognized over the amounts contractually due pursuant to the underlying lease is included in the deferred land leases payable on the consolidated balance sheets. | |||
Income Taxes | Income Taxes | ||
ROP is a partnership and, as a result, all income and losses of the partnership are allocated to the partners for inclusion in their respective income tax returns. No provision has been made for income taxes in the consolidated financial statements since such taxes, if any, are the responsibility of the individual partners. | |||
We follow a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that is more-likely-than-not to be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited. | |||
Earnings per Unit | Earnings per Unit | ||
Earnings per unit was not computed in 2014, 2013 and 2012 as there were no outstanding common units held by third parties at December 31, 2014, 2013 and 2012. | |||
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. | |||
Exchangeable Debt Instruments | Exchangeable Debt Instruments | ||
The initial proceeds from exchangeable debt that may be settled in cash, including partial cash settlements, must be bifurcated between a liability component and an equity component associated with the embedded conversion option. The objective of the accounting guidance is to require the liability and equity components of exchangeable debt to be separately accounted for in a manner such that the interest expense on the exchangeable debt is not recorded at the stated rate of interest but rather at an effective rate that reflects the issuer's conventional debt borrowing rate at the date of issuance. We calculate the liability component of exchangeable debt based on the present value of the contractual cash flows discounted at our comparable market conventional debt borrowing rate at the date of issuance. The difference between the principal amount and the fair value of the liability component is reported as a discount on the exchangeable debt that is accreted as additional interest expense from the issuance date through the contractual maturity date using the effective interest method. A portion of this additional interest expense may be capitalized to the development and redevelopment balances qualifying for interest capitalization each period. The liability component of the exchangeable debt is reported net of discounts on our consolidated balance sheets. We calculate the equity component of exchangeable debt based on the difference between the initial proceeds received from the issuance of the exchangeable debt and the fair value of the liability component at the issuance date. The equity component is included in additional paid-in-capital, net of issuance costs, on our consolidated balance sheets. We allocate issuance costs for exchangeable debt between the liability and the equity components based on their relative values. | |||
Derivative Instruments | Derivative Instruments | ||
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. Effectiveness is essential for those derivatives that we intend to qualify for hedge accounting. Some derivative instruments are associated with an anticipated transaction. In those cases, hedge effectiveness criteria also require that it be probable that the underlying transaction occurs. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract. | |||
To determine the fair values of derivative instruments, we use a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. For the majority of financial instruments including most derivatives, long-term investments and long-term debt, standard market conventions and techniques such as discounted cash flow analysis, option pricing models, replacement cost, and termination cost are used to determine fair value. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized. | |||
In the normal course of business, we are exposed to the effect of interest rate changes and limit these risks by following established risk management policies and procedures including the use of derivatives. To address exposure to interest rates, derivatives are used primarily to fix the rate on debt based on floating-rate indices and manage the cost of borrowing obligations. | |||
We use a variety of commonly used derivative products that are considered plain vanilla derivatives. These derivatives typically include interest rate swaps, caps, collars and floors. We expressly prohibit the use of unconventional derivative instruments and using derivative instruments for trading or speculative purposes. Further, we have a policy of only entering into contracts with major financial institutions based upon their credit ratings and other factors. | |||
We may employ swaps, forwards or purchased options to hedge qualifying forecasted transactions. Gains and losses related to these transactions are deferred and recognized in net income as interest expense in the same period or periods that the underlying transaction occurs, expires or is otherwise terminated. | |||
Hedges that are reported at fair value and presented on the balance sheet could be characterized as cash flow hedges or fair value hedges. Interest rate caps and collars are examples of cash flow hedges. Cash flow hedges address the risk associated with future cash flows of interest payments. For all hedges held by us and which were deemed to be fully effective in meeting the hedging objectives established by our corporate policy governing interest rate risk management, no net gains or losses were reported in earnings. The changes in fair value of hedge instruments are reflected in accumulated other comprehensive income. For derivative instruments not designated as hedging instruments, the gain or loss resulting from the change in the estimated fair value of the derivative instruments is recognized in current earnings during the period of change. | |||
Fair Value Measurements | Fair Value Measurements | ||
We are required to disclose fair value information with regard to our financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practical to estimate fair value. The 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 consist 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. Our 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. | |||
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, and 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 instrument to their present value using adjusted market interest rates, which is provided by a third-party specialist. | |||
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 primarily 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 properties located in Brooklyn, Westchester County, Connecticut and New Jersey. 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. | |||
Accounting Standards Updates | Accounting Standards Updates | ||
In February 2015, the Financial Accounting Standards Board, or FASB, issued new guidance that amends the current consolidation guidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities (Accounting Standards Update, or ASU, No. 2015-02). Under this analysis, limited partnerships and other similar entities will be considered a VIE unless the limited partners hold substantive kick-out rights or participating rights. The guidance is effective for annual and interim periods beginning after December 15, 2015. Early adoption of this guidance is permitted. The Company is currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements. | |||
In May 2014, 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 (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. | |||
In February 2013, the FASB issued guidance on the presentation and disclosure of reclassification adjustments out of accumulated other comprehensive income, or AOCI (ASU No. 2013-02). The standard requires an entity to present information about significant items reclassified out of AOCI by component either on the face of the statement where net income is presented or as a separate disclosure in the notes to financial statements. The guidance was effective for calendar year-end public companies beginning in the first quarter of 2013 and its adoption did not have a material impact on our consolidated financial statements. | |||
In December 2011, the FASB issued guidance that concluded when a parent ceases to have a controlling financial interest in a subsidiary that is in-substance real estate as a result of default on the subsidiary's nonrecourse debt, the reporting entity must apply the accounting guidance for sales of real estate to determine whether it should derecognize the in-substance real estate (ASU No. 2011-10). The reporting entity is precluded from derecognizing the real estate until legal ownership has been transferred to the lender to satisfy the debt. The guidance was effective for calendar year-end public and nonpublic companies in 2013 and is to be applied on a prospective basis. Adoption of this guidance did not have a material impact on our consolidated financial statements. | |||
In May 2011, the FASB issued updated guidance on fair value measurement which amends U.S. GAAP to conform to IFRS measurement and disclosure requirements (ASU No. 2011-04). The amendments change the wording used to describe the requirements in U.S. GAAP for measuring fair value, changes certain fair value measurement principles and enhances disclosure requirements. This guidance was effective as of the first quarter of 2012, and its adoption did not have a material impact on our consolidated financial statements. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 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 Brooklyn, Westchester County, Connecticut and New Jersey, which are collectively known as the Suburban properties: | |||||||||||
Location | Type | Number of | Approximate Square Feet (unaudited) | Weighted Average | ||||||||
Buildings | Occupancy(1) (unaudited) | |||||||||||
Commercial: | ||||||||||||
Manhattan | Office | 13 | 7,611,645 | 92.8 | % | |||||||
Retail(2) | 5 | 352,892 | 98.4 | % | ||||||||
Redevelopment | 1 | 104,000 | 72.5 | % | ||||||||
Fee Interest | 1 | 176,530 | 100 | % | ||||||||
20 | 8,245,067 | 92.9 | % | |||||||||
Suburban | Office | 20 | 3,417,900 | 80.5 | % | |||||||
Total commercial properties | 40 | 11,662,967 | 89.3 | % | ||||||||
Residential: | ||||||||||||
Manhattan | Residential(2) | — | 222,855 | 95.8 | % | |||||||
Total portfolio | 40 | 11,885,822 | 89.4 | % | ||||||||
____________________________________________________________________ | ||||||||||||
-1 | The weighted average occupancy represents the total leased square feet divided by total available rentable square feet. | |||||||||||
-2 | As of December 31, 2014, we owned a building that was comprised of 270,132 square feet (unaudited) of retail space and 222,855 square feet (unaudited) 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) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Schedule of estimated useful lives | Properties are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: | |||||||
Category | Term | |||||||
Building (fee ownership) | 40 years | |||||||
Building improvements | shorter of remaining life of the building or useful life | |||||||
Building (leasehold interest) | lesser of 40 years or remaining term of the lease | |||||||
Property under capital lease | remaining lease term | |||||||
Furniture and fixtures | four to seven years | |||||||
Tenant improvements | shorter of remaining term of the lease or useful life | |||||||
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 December 31, 2014 and 2013 (in thousands): | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Identified intangible assets (included in other assets): | ||||||||
Gross amount | $ | 294,934 | $ | 261,725 | ||||
Accumulated amortization | (216,231 | ) | (181,468 | ) | ||||
Net | $ | 78,703 | $ | 80,257 | ||||
Identified intangible liabilities (included in deferred revenue): | ||||||||
Gross amount | $ | 450,049 | $ | 442,210 | ||||
Accumulated amortization | (322,638 | ) | (285,291 | ) | ||||
Net | $ | 127,411 | $ | 156,919 | ||||
Schedule of estimated annual amortization of acquired below-market leases, net of acquired above-market leases | The estimated annual amortization of acquired below-market leases, net of acquired above-market leases (a component of rental revenue), for each of the five succeeding years is as follows (in thousands): | |||||||
2015 | $ | 2,033 | ||||||
2016 | 2,146 | |||||||
2017 | 3,030 | |||||||
2018 | 4,547 | |||||||
2019 | 5,178 | |||||||
Schedule of estimated annual amortization of all other identifiable assets | The estimated annual amortization of all other identifiable assets (a component of depreciation and amortization expense) including tenant improvements for each of the five succeeding years is as follows (in thousands): | |||||||
2015 | $ | 6,183 | ||||||
2016 | 4,812 | |||||||
2017 | 3,413 | |||||||
2018 | 2,230 | |||||||
2019 | 1,760 | |||||||
Property_Acquisitions_Tables
Property Acquisitions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
2014 Acquisitions | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Schedule of recognized identified assets acquired and liabilities assumed | The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the closing of these acquisitions (in thousands): | ||||||||||||
102 Greene | 635 Madison Avenue(1)(2) | 115 Spring | |||||||||||
Street(1) | Street(1) | ||||||||||||
Acquisition Date | Oct-14 | Sep-14 | Jul-14 | ||||||||||
Ownership Type | Fee Interest | Fee Interest | Fee Interest | ||||||||||
Property Type | Retail | Land | Retail | ||||||||||
Purchase Price Allocation: | |||||||||||||
Land | $ | 11,288 | $ | 153,745 | $ | 15,938 | |||||||
Building and building leasehold | 20,962 | — | 37,187 | ||||||||||
Above-market lease value | — | — | — | ||||||||||
Acquired in-place lease value | — | — | — | ||||||||||
Other assets, net of other liabilities | — | — | — | ||||||||||
Assets acquired | 32,250 | 153,745 | 53,125 | ||||||||||
Mark-to-market assumed debt | — | — | — | ||||||||||
Below-market lease value | — | — | — | ||||||||||
Liabilities assumed | — | — | — | ||||||||||
Purchase price | $ | 32,250 | $ | 153,745 | $ | 53,125 | |||||||
Net consideration funded by us at closing, excluding consideration financed by debt | $ | 32,250 | $ | 153,745 | $ | 53,125 | |||||||
Equity and/or debt investment held | $ | — | $ | — | $ | — | |||||||
Debt assumed | $ | — | $ | — | $ | — | |||||||
____________________________________________________________________ | |||||||||||||
-1 | We are currently in the process of analyzing the purchase price allocation and, as such, we have not allocated any value to intangible assets such as above- and below-market lease or in-place lease value. | ||||||||||||
-2 | This property was acquired inclusive of the issuance of $4.0 million aggregate liquidation preference of Series J Preferred Units of limited partnership interest of the Operating Partnership. | ||||||||||||
2013 Acquisitions | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Schedule of recognized identified assets acquired and liabilities assumed | During the year ended December 31, 2013, the properties listed below were acquired from third parties. The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the closing of these acquisitions (in thousands): | ||||||||||||
315 West 33rd Street(1) | 16 Court Street(2) | ||||||||||||
Acquisition Date | Nov-13 | Apr-13 | |||||||||||
Ownership Type | Fee Interest | Fee Interest | |||||||||||
Property Type | Residential | Office | |||||||||||
Purchase Price Allocation: | |||||||||||||
Land | $ | 195,834 | $ | 19,217 | |||||||||
Building and building leasehold | 164,429 | 63,210 | |||||||||||
Above-market lease value | 7,084 | 5,122 | |||||||||||
Acquired in-place lease value | 26,125 | 9,422 | |||||||||||
Other assets, net of other liabilities | 1,142 | 3,380 | |||||||||||
Assets acquired | 394,614 | 100,351 | |||||||||||
Mark-to-market assumed debt | — | 294 | |||||||||||
Below-market lease value | 7,839 | 3,885 | |||||||||||
Liabilities assumed | 7,839 | 4,179 | |||||||||||
Purchase price | $ | 386,775 | $ | 96,172 | |||||||||
Net consideration funded by us at closing, excluding consideration financed by debt | $ | 386,775 | $ | 4,000 | |||||||||
Equity and/or debt investment held | $ | — | $ | 11,535 | |||||||||
Debt assumed | $ | — | $ | 84,642 | |||||||||
____________________________________________________________________ | |||||||||||||
-1 | During the year ended December 31, 2014, we finalized the purchase price allocation based on a third party appraisal and additional facts and circumstances that existed at the acquisition dates. These adjustments did not have a material impact to our consolidated statement of income for the year ended December 31, 2014. | ||||||||||||
-2 | This property was transferred from SL Green in 2014. See Note 1, Organization and Basis of Presentation, for further discussion. In April 2013, we acquired interests from our joint venture partner, City Investment Fund, or CIF, in 16 Court Street in Brooklyn for $4.0 million. We have consolidated the ownership of the building. The transaction valued the consolidated interest at $96.2 million, inclusive of the $84.6 million mortgage encumbering the property. In April 2014, we repaid the mortgage. | ||||||||||||
2012 Acquisitions | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Schedule of recognized identified assets acquired and liabilities assumed | |||||||||||||
-2 | This property was transferred from SL Green in 2014. See Note 1, Organization and Basis of Presentation, for further discussion. In April 2013, we acquired interests from our joint venture partner, City Investment Fund, or CIF, in 16 Court Street in Brooklyn for $4.0 million. We have consolidated the ownership of the building. The transaction valued the consolidated interest at $96.2 million, inclusive of the $84.6 million mortgage encumbering the property. In April 2014, we repaid the mortgage. | ||||||||||||
During the year ended December 31, 2012, the properties listed below were acquired from third parties. The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the closing of these acquisitions (in thousands): | |||||||||||||
131-137 Spring Street(1) | 635-641 Sixth Avenue | 304 Park Avenue South(2) | |||||||||||
Acquisition Date | Dec-12 | Sep-12 | Jun-12 | ||||||||||
Ownership Type | Fee Interest | Fee Interest | Fee Interest | ||||||||||
Property Type | Retail | Development | Office | ||||||||||
Purchase Price Allocation: | |||||||||||||
Land | $ | 27,021 | $ | 69,848 | $ | 54,189 | |||||||
Building and building leasehold | 105,342 | 104,474 | 75,619 | ||||||||||
Above-market lease value | 179 | — | 2,824 | ||||||||||
Acquired in-place lease value | 7,046 | 7,727 | 8,265 | ||||||||||
Other assets, net of other liabilities | — | — | — | ||||||||||
Assets acquired | 139,588 | 182,049 | 140,897 | ||||||||||
Mark-to-market assumed debt | — | — | — | ||||||||||
Below-market lease value | 17,288 | 9,049 | 5,897 | ||||||||||
Liabilities assumed | 17,288 | 9,049 | 5,897 | ||||||||||
Purchase price | $ | 122,300 | $ | 173,000 | $ | 135,000 | |||||||
Net consideration funded by us at closing, excluding consideration financed by debt | $ | 122,300 | $ | 173,000 | $ | 135,000 | |||||||
Equity and/or debt investment held | $ | — | $ | — | $ | — | |||||||
Debt assumed | $ | — | $ | — | $ | — | |||||||
____________________________________________________________________ | |||||||||||||
-1 | This property was transferred from SL Green in 2014. See Note 1, Organization and Basis of Presentation, for further discussion. | ||||||||||||
-2 | This property was acquired with approximately $102.0 million in cash and $33.0 million in units of limited partnership interest of the Operating Partnership. |
Property_Dispositions_Tables
Property Dispositions (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||
Schedule of properties sold and income from discontinued operations | The following table summarizes the properties sold during the years ended December 31, 2014 and 2013: | |||||||||||||||
Property | Disposition Date | Property Type | Approximate Usable Square Feet | Sales Price | Gain on Sale(1) | |||||||||||
(unaudited) | (in millions) | (in millions) | ||||||||||||||
673 First Avenue | May-14 | Office | 422,000 | $ | 145 | $ | 117.6 | |||||||||
333 West 34th Street | Aug-13 | Office | 345,400 | 220.3 | 13.8 | |||||||||||
____________________________________________________________________ | ||||||||||||||||
-1 | The gain on sale for 673 First Avenue and 333 West 34th Street are net of a $3.4 million and $3.0 million, respectively, employee compensation award accrued in connection with the realization of this investment gain as a bonus to certain employees that were instrumental in realizing the gain on sale. | |||||||||||||||
The following table summarizes net income from discontinued operations for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Revenues | ||||||||||||||||
Rental revenue | $ | 7,853 | $ | 28,843 | $ | 31,574 | ||||||||||
Escalation and reimbursement revenues | 1,080 | 4,093 | 4,378 | |||||||||||||
Other income | — | 8 | 101 | |||||||||||||
Total revenues | 8,933 | 32,944 | 36,053 | |||||||||||||
Operating expenses | 1,222 | 6,733 | 8,590 | |||||||||||||
Real estate taxes | 1,402 | 4,571 | 4,536 | |||||||||||||
Ground rent | 3,001 | 7,974 | 6,363 | |||||||||||||
Interest expense, net of interest income | 879 | 2,933 | 3,189 | |||||||||||||
Depreciation and amortization | 433 | 4,826 | 7,672 | |||||||||||||
Total expenses | 6,937 | 27,037 | 30,350 | |||||||||||||
Net income from discontinued operations | $ | 1,996 | $ | 5,907 | $ | 5,703 | ||||||||||
Preferred_Equity_and_Other_Inv1
Preferred Equity and Other Investments (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||
Schedule of preferred equity investments | As of December 31, 2014 and 2013, we held the following preferred equity investments, with an aggregate weighted average current yield of approximately 10.89% at December 31, 2014 (in thousands): | |||||||||||||
Type | December 31, 2014 Senior Financing | 31-Dec-14 | 31-Dec-13 | Initial | ||||||||||
Carrying Value(1) | Carrying Value(1) | Mandatory | ||||||||||||
Redemption | ||||||||||||||
Preferred equity(2) | $ | 550,000 | $ | 123,041 | $ | 115,198 | Jul-15 | |||||||
Preferred equity | 70,000 | 9,954 | 9,940 | Nov-17 | ||||||||||
Preferred equity(3) | — | — | 25,896 | |||||||||||
Preferred equity(2)(4) | — | — | 218,330 | |||||||||||
$ | 620,000 | $ | 132,995 | $ | 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. | |||||||||||||
-4 | This preferred equity investment was redeemed in November 2014. |
Mortgages_and_Other_Loans_Paya1
Mortgages and Other Loans Payable (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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 mortgages and other loans payable collateralized by the property, assignment of leases and investment at December 31, 2014 and 2013, respectively, were as follows (amounts in thousands): | ||||||||||||
Property | Interest | Maturity Date | 31-Dec-14 | 31-Dec-13 | |||||||||
Rate(1) | |||||||||||||
919 Third Avenue(2) | 5.12 | % | Jun-23 | $ | 500,000 | $ | 500,000 | ||||||
Other loan payable(3) | — | 50,000 | |||||||||||
16 Court Street(4) | — | 79,243 | |||||||||||
609 Partners, LLC(5) | — | 23 | |||||||||||
125 Park Avenue(6) | — | 146,250 | |||||||||||
625 Madison Avenue(7) | — | 120,830 | |||||||||||
$ | 500,000 | $ | 896,346 | ||||||||||
____________________________________________________________________ | |||||||||||||
-1 | Effective weighted average interest rate for the year ended December 31, 2014. | ||||||||||||
-2 | We own a 51.0% controlling interest in the joint venture that is the borrower on this loan. | ||||||||||||
-3 | In November 2014, we repaid the 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. | ||||||||||||
-6 | In October 2014, we repaid the loan at maturity. | ||||||||||||
-7 | In December 2014, we prepaid the loan and incurred a loss on early extinguishment of debt of $6.9 million. |
Corporate_Indebtedness_Tables
Corporate Indebtedness (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 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 December 31, 2014 and 2013, respectively, by scheduled maturity date (dollars in thousands): | |||||||||||||||||||||||
Issuance | December 31, 2014 Unpaid Principal Balance | December 31, 2014 Accreted Balance | December 31, 2013 Accreted Balance | Coupon | Effective | Term | Maturity | |||||||||||||||||
Rate(1) | Rate | (in Years) | ||||||||||||||||||||||
March 31, 2006 | $ | 255,308 | $ | 255,250 | $ | 255,206 | 6 | % | 6 | % | 10 | March 31, 2016 | ||||||||||||
August 5, 2011(2) | 250,000 | 249,744 | 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 31, 2004(4) | — | — | 75,898 | |||||||||||||||||||||
$ | 955,315 | $ | 955,001 | $ | 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 | Issued by SL Green, the Operating Partnership and ROP, as 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 our mortgage, 2012 credit facility and senior unsecured notes as of December 31, 2014, including as-of-right extension options and put options, were as follows (in thousands): | |||||||||||||||||||||||
Scheduled | Principal | Revolving | Unsecured Term Loan | Senior | Total | |||||||||||||||||||
Amortization | Repayments | Credit | Unsecured | |||||||||||||||||||||
Facility | Notes | |||||||||||||||||||||||
2015 | $ | — | $ | — | $ | — | $ | — | $ | 7 | $ | 7 | ||||||||||||
2016 | 3,566 | — | — | — | 255,308 | 258,874 | ||||||||||||||||||
2017 | 7,411 | — | — | — | — | 7,411 | ||||||||||||||||||
2018 | 7,799 | — | 385,000 | — | 250,000 | 642,799 | ||||||||||||||||||
2019 | 8,207 | — | — | 833,000 | — | 841,207 | ||||||||||||||||||
Thereafter | 31,423 | 441,594 | — | — | 450,000 | 923,017 | ||||||||||||||||||
$ | 58,406 | $ | 441,594 | $ | 385,000 | $ | 833,000 | $ | 955,315 | $ | 2,673,315 | |||||||||||||
Schedule of Consolidated Interest expense, excluding capitalized interest | Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands): | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Interest expense | $ | 120,076 | $ | 123,464 | $ | 120,346 | ||||||||||||||||||
Interest income | (70 | ) | (6 | ) | (10 | ) | ||||||||||||||||||
Interest expense, net | $ | 120,006 | $ | 123,458 | $ | 120,336 | ||||||||||||||||||
Interest capitalized | $ | 3,753 | $ | — | $ | — | ||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 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 December 31, 2014 and 2013 (in thousands): | |||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Preferred equity investments | $ | 132,995 | (2) | -1 | $ | 369,364 | -1 | |||||||||
Fixed rate debt | $ | 1,485,001 | $ | 1,616,490 | $ | 1,877,895 | $ | 1,993,259 | ||||||||
Variable rate debt | 1,188,000 | 1,230,470 | 669,243 | 684,871 | ||||||||||||
$ | 2,673,001 | $ | 2,846,960 | $ | 2,547,138 | $ | 2,678,130 | |||||||||
______________________________________________________________________ | ||||||||||||||||
-1 | At December 31, 2014, preferred equity investments had an estimated fair value ranging between $146.3 million and $166.2 million. At December 31, 2013, preferred equity investments had an estimated fair value of $400.0 million. | |||||||||||||||
-2 | Excludes one investment with a book value of $40.2 million as of December 31, 2014, which we accounted for under the equity method accounting as a result of meeting the criteria of a real estate investment under the guidance for Acquisition, Development and Construction arrangements. |
Financial_Instruments_Derivati1
Financial Instruments: Derivatives and Hedging (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of notional and fair value of derivative financial instruments and foreign currency hedges | |||||||||||||||||||||||||||||||||||||||||
Notional | Strike | Effective | Expiration | Balance Sheet Location | Fair | ||||||||||||||||||||||||||||||||||||
Value | Rate | Date | Date | Value | |||||||||||||||||||||||||||||||||||||
Interest Rate Swap | $ | 30,000 | 2.295 | % | Jul-10 | Jun-16 | Other Liabilities | $ | (774 | ) | |||||||||||||||||||||||||||||||
Schedule of effect of derivative financial instruments on consolidated statements of income | The following table presents the effect of our derivative financial instrument that is designated and qualify as a hedging instrument on the consolidated statements of income for the years ended December 31, 2014, 2013 and 2012, respectively (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Amount of Loss | Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Amount of Loss | Location of Gain (Loss) 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) | ||||||||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||
Derivative | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Interest Rate Swap | $ | (135 | ) | $ | — | $ | (794 | ) | Interest expense | $ | 1,010 | $ | 944 | $ | 986 | Interest expense | $ | 4 | $ | 3 | $ | 3 | |||||||||||||||||||
Rental_Income_Tables
Rental Income (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Schedule of approximate future minimum rents to be received over the next five years and thereafter | Approximate future minimum rents to be received over the next five years and thereafter for non-cancelable operating leases in effect at December 31, 2014 for the properties, including consolidated joint venture properties, are as follows (in thousands): | ||||
2015 | $ | 512,345 | |||
2016 | 489,993 | ||||
2017 | 454,877 | ||||
2018 | 426,272 | ||||
2019 | 401,054 | ||||
Thereafter | 1,804,385 | ||||
$ | 4,088,926 | ||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
Schedule of contributions made to multi-employer plans | Contributions we made to the multi-employer plans for the years ended December 31, 2014, 2013 and 2012 are included in the table below (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
Benefit Plan | 2014 | 2013 | 2012 | |||||||||
Pension Plan | $ | 1,426 | $ | 1,353 | $ | 1,197 | ||||||
Health Plan | 4,283 | 4,179 | 3,764 | |||||||||
Other plans | 2,930 | 2,874 | 2,790 | |||||||||
Total plan contributions | $ | 8,639 | $ | 8,406 | $ | 7,751 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 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 non-cancellable operating leases with initial terms in excess of one year as of December 31, 2014 (in thousands): | ||||
Non-cancellable | |||||
operating leases | |||||
2015 | $ | 15,086 | |||
2016 | 15,086 | ||||
2017 | 15,086 | ||||
2018 | 15,086 | ||||
2019 | 15,086 | ||||
Thereafter | 273,964 | ||||
Total minimum lease payments | $ | 349,394 | |||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of Selected results of operations and selected asset information | Selected results of operations for the years ended December 31, 2014, 2013 and 2012 and selected asset information as of December 31, 2014 and 2013, regarding our operating segments are as follows (in thousands): | |||||||||||
Real Estate | Preferred | Total | ||||||||||
Segment | Equity | Company | ||||||||||
Segment | ||||||||||||
Total revenues: | ||||||||||||
Years ended: | ||||||||||||
31-Dec-14 | $ | 643,096 | $ | 35,141 | $ | 678,237 | ||||||
31-Dec-13 | 597,681 | 43,226 | 640,907 | |||||||||
31-Dec-12 | 561,354 | 9,497 | 570,851 | |||||||||
Income from continuing operations: | ||||||||||||
Years ended: | ||||||||||||
31-Dec-14 | $ | 30,873 | $ | 31,705 | $ | 62,578 | ||||||
31-Dec-13 | 27,934 | 40,118 | 68,052 | |||||||||
31-Dec-12 | 26,376 | 8,372 | 34,748 | |||||||||
Total assets | ||||||||||||
As of: | ||||||||||||
31-Dec-14 | $ | 6,211,574 | $ | 173,300 | $ | 6,384,874 | ||||||
31-Dec-13 | 6,101,484 | 370,532 | 6,472,016 | |||||||||
Quarterly_Financial_Data_of_th1
Quarterly Financial Data of the Company (unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information | Summarized quarterly financial data for the years ended December 31, 2014 and 2013, which is reflective of the properties transferred to us by SL Green and the reclassification of the properties sold during 2014 and 2013 as discontinued operations (see Note 4, "Property Dispositions"), was as follows (in thousands): | |||||||||||||||
2014 Quarter Ended | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Total revenues | $ | 174,735 | $ | 171,187 | $ | 167,254 | $ | 165,061 | ||||||||
Income from continuing operations before equity in net income from unconsolidated joint ventures, loss on extinguishment of debt, net (loss) income from discontinued operations, (loss) gain on sale of discontinued operations | $ | 21,077 | $ | 16,203 | $ | 16,400 | $ | 13,473 | ||||||||
Equity in net income from unconsolidated joint ventures | 848 | 868 | 1,094 | — | ||||||||||||
Loss on extinguishment of debt | (6,866 | ) | — | (519 | ) | — | ||||||||||
Net (loss) income from discontinued operations | — | (58 | ) | 1,348 | 706 | |||||||||||
(Loss) gain on sale of discontinued operations | — | (250 | ) | 117,829 | — | |||||||||||
Net income | 15,059 | 16,763 | 136,152 | 14,179 | ||||||||||||
Net income attributable to noncontrolling interests in other partnerships | (938 | ) | (841 | ) | (801 | ) | (61 | ) | ||||||||
Net income attributable to ROP common unitholder | $ | 14,121 | $ | 15,922 | $ | 135,351 | $ | 14,118 | ||||||||
2013 Quarter Ended | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Total revenues | $ | 170,766 | $ | 153,330 | $ | 160,171 | $ | 156,640 | ||||||||
Income from continuing operations before equity in net income from unconsolidated joint ventures, loss on extinguishment of debt, net income from discontinued operations, (loss) gain on sale of discontinued operations | $ | 19,291 | $ | 3,623 | $ | 22,062 | $ | 19,210 | ||||||||
Equity in net income from unconsolidated joint ventures | 2,615 | 480 | 481 | 366 | ||||||||||||
Loss on extinguishment of debt | — | — | (10 | ) | (66 | ) | ||||||||||
Net income from discontinued operations | 175 | 1,622 | 3,147 | 963 | ||||||||||||
(Loss) gain on sale of discontinued operations | (31 | ) | 13,787 | — | — | |||||||||||
Net income | 22,050 | 19,512 | 25,680 | 20,473 | ||||||||||||
Net income attributable to noncontrolling interests in other partnerships | (689 | ) | (1,399 | ) | (1,599 | ) | (1,513 | ) | ||||||||
Net income attributable to ROP common unitholder | $ | 21,361 | $ | 18,113 | $ | 24,081 | $ | 18,960 | ||||||||
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | ||
sqft | property | ||||
property | |||||
Real estate properties | |||||
Percentage of ownership in SL Green Operating Partnership owned by SL Green Realty Corp (as a percent) | 96.08% | ||||
Number of properties transferred from the operating partnership to the entity by SL Green (properties) | 5 | 3 | |||
Carrying value of properties transferred by SL Green | $884,300,000 | $320,200,000 | |||
Carrying value of preferred equity investments transferred by SL Green | 324,900,000 | ||||
Carrying value of loan secured by portion of a preferred equity investment | 50,000,000 | ||||
Number of Buildings (properties) | 40 | ||||
Square Feet (sqft) | 11,885,822 | ||||
Weighted Average Occupancy (as a percent) | 89.40% | [1] | |||
Preferred equity and other investments | $173,194,000 | $369,364,000 | |||
Commercial Properties | |||||
Real estate properties | |||||
Number of Buildings (properties) | 40 | ||||
Square Feet (sqft) | 11,662,967 | ||||
Weighted Average Occupancy (as a percent) | 89.30% | [1] | |||
Dual property type, retail portion | |||||
Real estate properties | |||||
Square Feet (sqft) | 270,132 | ||||
Dual property type, residential portion | |||||
Real estate properties | |||||
Square Feet (sqft) | 222,855 | ||||
Manhattan | Office | |||||
Real estate properties | |||||
Number of Buildings (properties) | 13 | ||||
Square Feet (sqft) | 7,611,645 | ||||
Weighted Average Occupancy (as a percent) | 92.80% | [1] | |||
Manhattan | Retail | |||||
Real estate properties | |||||
Number of Buildings (properties) | 5 | [2] | |||
Square Feet (sqft) | 352,892 | [2] | |||
Weighted Average Occupancy (as a percent) | 98.40% | [1],[2] | |||
Manhattan | Redevelopment | |||||
Real estate properties | |||||
Number of Buildings (properties) | 1 | ||||
Square Feet (sqft) | 104,000 | ||||
Weighted Average Occupancy (as a percent) | 72.50% | [1] | |||
Manhattan | Fee Interest | |||||
Real estate properties | |||||
Number of Buildings (properties) | 1 | ||||
Square Feet (sqft) | 176,530 | ||||
Weighted Average Occupancy (as a percent) | 100.00% | [1] | |||
Manhattan | Commercial Properties | |||||
Real estate properties | |||||
Number of Buildings (properties) | 20 | ||||
Square Feet (sqft) | 8,245,067 | ||||
Weighted Average Occupancy (as a percent) | 92.90% | [1] | |||
Manhattan | Residential | |||||
Real estate properties | |||||
Number of Buildings (properties) | 0 | [2] | |||
Square Feet (sqft) | 222,855 | [2] | |||
Weighted Average Occupancy (as a percent) | 95.80% | [1],[2] | |||
Suburban | Office | |||||
Real estate properties | |||||
Number of Buildings (properties) | 20 | ||||
Square Feet (sqft) | 3,417,900 | ||||
Weighted Average Occupancy (as a percent) | 80.50% | [1] | |||
[1] | The weighted average occupancy represents the total leased square feet divided by total available rentable square feet. | ||||
[2] | As of DecemberB 31, 2014, we owned a building that was comprised ofB 270,132B square feet (unaudited) of retail space andB 222,855B square feet (unaudited) 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 $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
Investment in Commercial Real Estate Properties | ||||
Depreciation expense | $180,500,000 | $166,300,000 | $145,600,000 | |
Weighted average amortization period for above-market leases (years) | 4 years 96 days | |||
Weighted average amortization period for below-market leases (years) | 4 years 113 days | |||
Weighted average amortization period for in-place lease costs (years) | 4 years 319 days | |||
Increase in rental revenue from amortization of acquired leases | 21,100,000 | 19,100,000 | 19,000,000 | |
Write-off of above and in place market leases | 6,800,000 | |||
Increase in rental revenue | 25,900,000 | |||
Increase /( reduction) in interest expense from amortization of above-market rate mortgages | 2,100,000 | -2,500,000 | -2,200,000 | |
Identified intangible assets (included in other assets): | ||||
Gross amount | 294,934,000 | 261,725,000 | ||
Accumulated amortization | -216,231,000 | -181,468,000 | ||
Net | 78,703,000 | 80,257,000 | ||
Identified intangible liabilities (included in deferred revenue): | ||||
Gross amount | 450,049,000 | 442,210,000 | ||
Accumulated amortization | -322,638,000 | -285,291,000 | ||
Net | 127,411,000 | 156,919,000 | ||
Maximum | ||||
Investment in Commercial Real Estate Properties | ||||
Period from cessation of major construction to consider construction project as complete and available for occupancy (years) | 1 year | |||
Above-market leases | Minimum | ||||
Investment in Commercial Real Estate Properties | ||||
Estimated useful life of intangible assets (years) | 1 year | |||
Above-market leases | Maximum | ||||
Investment in Commercial Real Estate Properties | ||||
Estimated useful life of intangible assets (years) | 14 years | |||
Below-market leases | Minimum | ||||
Investment in Commercial Real Estate Properties | ||||
Estimated useful life of intangible assets (years) | 1 year | |||
Below-market leases | Maximum | ||||
Investment in Commercial Real Estate Properties | ||||
Estimated useful life of intangible assets (years) | 14 years | |||
In-place leases | Minimum | ||||
Investment in Commercial Real Estate Properties | ||||
Estimated useful life of intangible assets (years) | 1 year | |||
In-place leases | Maximum | ||||
Investment in Commercial Real Estate Properties | ||||
Estimated useful life of intangible assets (years) | 14 years | |||
Acquired below-market leases, net of acquired above-market leases | ||||
Estimated annual amortization | ||||
2015 | 2,033,000 | |||
2016 | 2,146,000 | |||
2017 | 3,030,000 | |||
2018 | 4,547,000 | |||
2019 | 5,178,000 | |||
All other identifiable assets | ||||
Estimated annual amortization | ||||
2015 | 6,183,000 | |||
2016 | 4,812,000 | |||
2017 | 3,413,000 | |||
2018 | 2,230,000 | |||
2019 | 1,760,000 | |||
Building (fee ownership) | ||||
Investment in Commercial Real Estate Properties | ||||
Estimated useful life (years) | 40 years | |||
Building (leasehold interest) | Maximum | ||||
Investment in Commercial Real Estate Properties | ||||
Estimated useful life (years) | 40 years | |||
Furniture and Fixtures | Minimum | ||||
Investment in Commercial Real Estate Properties | ||||
Estimated useful life (years) | 4 years | |||
Furniture and Fixtures | Maximum | ||||
Investment in Commercial Real Estate Properties | ||||
Estimated useful life (years) | 7 years | |||
Buildings | Minimum | ||||
Investment in Commercial Real Estate Properties | ||||
Estimated useful life (years) | 3 years | |||
Buildings | Maximum | ||||
Investment in Commercial Real Estate Properties | ||||
Estimated useful life (years) | 40 years | |||
16 Court Street | ||||
Investment in Commercial Real Estate Properties | ||||
Income from Early Repayment of Debt | $300,000 |
Significant_Accounting_Policie4
Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Revenue Recognition | ||
Period after which payments become due (days) | 90 days | |
Reserve for Possible Credit Losses | ||
Recoveries recorded in connection with sale of debt investments | $0.50 |
Significant_Accounting_Policie5
Significant Accounting Policies (Details 3) | 12 Months Ended |
Dec. 31, 2014 | |
Tenant | |
Concentrations of Credit Risk | |
Number of tenants concentration risk | 2 |
Annualized cash rent | Customer concentration | |
Concentrations of Credit Risk | |
Maximum percentage of annualized cash rent for any one tenant not individually disclosed | 3.00% |
Annualized cash rent | Customer concentration | 1185 Avenue of the Americas | |
Concentrations of Credit Risk | |
Percentage of concentration | 17.40% |
Annualized cash rent | Customer concentration | 625 Madison Avenue | |
Concentrations of Credit Risk | |
Percentage of concentration | 9.40% |
Annualized cash rent | Customer concentration | 750 Third Avenue | |
Concentrations of Credit Risk | |
Percentage of concentration | 8.70% |
Annualized cash rent | Customer concentration | 919 Third Avenue | |
Concentrations of Credit Risk | |
Percentage of concentration | 8.60% |
Annualized cash rent | Customer concentration | 1350 Avenue of the Americas | |
Concentrations of Credit Risk | |
Percentage of concentration | 7.80% |
Annualized cash rent | Tenant 1 | Customer concentration | |
Concentrations of Credit Risk | |
Percentage of concentration | 4.70% |
Annualized cash rent | Tenant 2 | Customer concentration | |
Concentrations of Credit Risk | |
Percentage of concentration | 4.40% |
Property_Acquisitions_Details
Property Acquisitions (Details) (USD $) | 1 Months Ended | ||||||||||||||
Oct. 31, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Nov. 30, 2013 | Apr. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | ||||||||
102 Greene Street | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed | |||||||||||||||
Land | $11,288,000 | [1] | |||||||||||||
Building and building leasehold | 20,962,000 | [1] | |||||||||||||
Above-market lease value | 0 | [1] | |||||||||||||
Acquired in-place lease value | 0 | [1] | |||||||||||||
Other assets, net of other liabilities | 0 | [1] | |||||||||||||
Assets acquired | 32,250,000 | [1] | |||||||||||||
Mark-to-market assumed debt | 0 | [1] | |||||||||||||
Below-market lease value | 0 | [1] | |||||||||||||
Liabilities assumed | 0 | [1] | |||||||||||||
Purchase price | 32,250,000 | [1] | |||||||||||||
Net consideration funded by us at closing, excluding consideration financed by debt | 32,250,000 | [1] | |||||||||||||
Equity and/or debt investment held | 0 | [1] | |||||||||||||
Debt assumed | 0 | [1] | |||||||||||||
635 Madison Avenue | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed | |||||||||||||||
Land | 153,745,000 | [1],[2] | |||||||||||||
Building and building leasehold | 0 | [1],[2] | |||||||||||||
Above-market lease value | 0 | [1],[2] | |||||||||||||
Acquired in-place lease value | 0 | [1],[2] | |||||||||||||
Other assets, net of other liabilities | 0 | [1],[2] | |||||||||||||
Assets acquired | 153,745,000 | [1],[2] | |||||||||||||
Mark-to-market assumed debt | 0 | [1],[2] | |||||||||||||
Below-market lease value | 0 | [1],[2] | |||||||||||||
Liabilities assumed | 0 | [1],[2] | |||||||||||||
Purchase price | 153,745,000 | [1],[2] | |||||||||||||
Net consideration funded by us at closing, excluding consideration financed by debt | 153,745,000 | [1],[2] | |||||||||||||
Equity and/or debt investment held | 0 | [1],[2] | |||||||||||||
Debt assumed | 0 | [1],[2] | |||||||||||||
115 Spring Street | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed | |||||||||||||||
Land | 15,938,000 | [1] | |||||||||||||
Building and building leasehold | 37,187,000 | [1] | |||||||||||||
Above-market lease value | 0 | [1] | |||||||||||||
Acquired in-place lease value | 0 | [1] | |||||||||||||
Other assets, net of other liabilities | 0 | [1] | |||||||||||||
Assets acquired | 53,125,000 | [1] | |||||||||||||
Mark-to-market assumed debt | 0 | [1] | |||||||||||||
Below-market lease value | 0 | [1] | |||||||||||||
Liabilities assumed | 0 | [1] | |||||||||||||
Purchase price | 53,125,000 | [1] | |||||||||||||
Net consideration funded by us at closing, excluding consideration financed by debt | 53,125,000 | [1] | |||||||||||||
Equity and/or debt investment held | 0 | [1] | |||||||||||||
Debt assumed | 0 | [1] | |||||||||||||
315 West 33rd Street | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed | |||||||||||||||
Land | 195,834,000 | [3] | |||||||||||||
Building and building leasehold | 164,429,000 | [3] | |||||||||||||
Above-market lease value | 7,084,000 | [3] | |||||||||||||
Acquired in-place lease value | 26,125,000 | [3] | |||||||||||||
Other assets, net of other liabilities | 1,142,000 | [3] | |||||||||||||
Assets acquired | 394,614,000 | [3] | |||||||||||||
Mark-to-market assumed debt | 0 | [3] | |||||||||||||
Below-market lease value | 7,839,000 | [3] | |||||||||||||
Liabilities assumed | 7,839,000 | [3] | |||||||||||||
Purchase price | 386,775,000 | [3] | |||||||||||||
Net consideration funded by us at closing, excluding consideration financed by debt | 386,775,000 | [3] | |||||||||||||
Equity and/or debt investment held | 0 | [3] | |||||||||||||
Debt assumed | 0 | [3] | |||||||||||||
16 Court Street | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed | |||||||||||||||
Land | 19,217,000 | [4] | |||||||||||||
Building and building leasehold | 63,210,000 | [4] | |||||||||||||
Above-market lease value | 5,122,000 | [4] | |||||||||||||
Acquired in-place lease value | 9,422,000 | [4] | |||||||||||||
Other assets, net of other liabilities | 3,380,000 | [4] | |||||||||||||
Assets acquired | 100,351,000 | [4] | |||||||||||||
Mark-to-market assumed debt | 294,000 | [4] | |||||||||||||
Below-market lease value | 3,885,000 | [4] | |||||||||||||
Liabilities assumed | 4,179,000 | [4] | |||||||||||||
Purchase price | 96,172,000 | [4] | |||||||||||||
Net consideration funded by us at closing, excluding consideration financed by debt | 4,000,000 | [4] | |||||||||||||
Equity and/or debt investment held | 11,535,000 | [4] | |||||||||||||
Debt assumed | 84,642,000 | [4] | |||||||||||||
Mortgage encumbering the property | 84,600,000 | ||||||||||||||
131-137 Spring Street | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed | |||||||||||||||
Land | 27,021,000 | [5] | |||||||||||||
Building and building leasehold | 105,342,000 | [5] | |||||||||||||
Above-market lease value | 179,000 | [5] | |||||||||||||
Acquired in-place lease value | 7,046,000 | [5] | |||||||||||||
Other assets, net of other liabilities | 0 | [5] | |||||||||||||
Assets acquired | 139,588,000 | [5] | |||||||||||||
Mark-to-market assumed debt | 0 | [5] | |||||||||||||
Below-market lease value | 17,288,000 | [5] | |||||||||||||
Liabilities assumed | 17,288,000 | [5] | |||||||||||||
Purchase price | 122,300,000 | [5] | |||||||||||||
Net consideration funded by us at closing, excluding consideration financed by debt | 122,300,000 | [5] | |||||||||||||
Equity and/or debt investment held | 0 | [5] | |||||||||||||
Debt assumed | 0 | [5] | |||||||||||||
635-641 Sixth Avenue | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed | |||||||||||||||
Land | 69,848,000 | ||||||||||||||
Building and building leasehold | 104,474,000 | ||||||||||||||
Above-market lease value | 0 | ||||||||||||||
Acquired in-place lease value | 7,727,000 | ||||||||||||||
Other assets, net of other liabilities | 0 | ||||||||||||||
Assets acquired | 182,049,000 | ||||||||||||||
Mark-to-market assumed debt | 0 | ||||||||||||||
Below-market lease value | 9,049,000 | ||||||||||||||
Liabilities assumed | 9,049,000 | ||||||||||||||
Purchase price | 173,000,000 | ||||||||||||||
Net consideration funded by us at closing, excluding consideration financed by debt | 173,000,000 | ||||||||||||||
Equity and/or debt investment held | 0 | ||||||||||||||
Debt assumed | 0 | ||||||||||||||
304 Park Avenue South | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed | |||||||||||||||
Land | 54,189,000 | [6] | |||||||||||||
Building and building leasehold | 75,619,000 | [6] | |||||||||||||
Above-market lease value | 2,824,000 | [6] | |||||||||||||
Acquired in-place lease value | 8,265,000 | [6] | |||||||||||||
Other assets, net of other liabilities | 0 | [6] | |||||||||||||
Assets acquired | 140,897,000 | [6] | |||||||||||||
Mark-to-market assumed debt | 0 | [6] | |||||||||||||
Below-market lease value | 5,897,000 | [6] | |||||||||||||
Liabilities assumed | 5,897,000 | [6] | |||||||||||||
Purchase price | 135,000,000 | [6] | |||||||||||||
Net consideration funded by us at closing, excluding consideration financed by debt | 135,000,000 | [6] | |||||||||||||
Equity and/or debt investment held | 0 | [6] | |||||||||||||
Debt assumed | 0 | [6] | |||||||||||||
Consideration in cash | 102,000,000 | ||||||||||||||
Value of preferred operating partnership units issued | 33,000,000 | ||||||||||||||
Series J Preferred Stock | 635 Madison Avenue | |||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed | |||||||||||||||
Issuance of aggregate liquidation preference of preferred units | $4,000,000 | ||||||||||||||
[1] | We are currently in the process of analyzing the purchase price allocation and, as such, we have not allocated any value to intangible assets such as above- and below-market lease or in-place lease value. | ||||||||||||||
[2] | This property was acquired inclusive of the issuance of $4.0 million aggregate liquidation preference of Series J Preferred Units of limited partnership interest of the Operating Partnership. | ||||||||||||||
[3] | During the year ended December 31, 2014, we finalized the purchase price allocation based on a third party appraisal and additional facts and circumstances that existed at the acquisition dates. These adjustments did not have a material impact to our consolidated statement of income for the year ended December 31, 2014. | ||||||||||||||
[4] | This property was transferred from SL Green in 2014. See Note 1, Organization and Basis of Presentation, for further discussion. In AprilB 2013, we acquired interests from our joint venture partner, City Investment Fund, or CIF, in 16 Court Street in Brooklyn for $4.0 million. We have consolidated the ownership of the building. The transaction valued the consolidated interest at $96.2 million, inclusive of the $84.6 million mortgage encumbering the property. In April 2014, we repaid the mortgage. | ||||||||||||||
[5] | This property was transferred from SL Green in 2014. See Note 1, Organization and Basis of Presentation, for further discussion. | ||||||||||||||
[6] | This property was acquired with approximately $102.0 million in cash and $33.0 million in units of limited partnership interest of the Operating Partnership. |
Property_Dispositions_Details
Property Dispositions (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-14 | Aug. 31, 2013 | |||
sqft | sqft | sqft | sqft | ||||||||||||
Properties Sold | |||||||||||||||
Approximate Usable Square Feet (sqft) | 11,885,822 | 11,885,822 | |||||||||||||
Gain on Sale | $0 | ($250,000) | $117,829,000 | $0 | ($31,000) | $13,787,000 | $0 | $0 | $117,579,000 | $13,756,000 | $0 | ||||
Revenues | |||||||||||||||
Rental revenue | 7,853,000 | 28,843,000 | 31,574,000 | ||||||||||||
Escalation and reimbursement revenues | 1,080,000 | 4,093,000 | 4,378,000 | ||||||||||||
Other income | 0 | 8,000 | 101,000 | ||||||||||||
Total revenues | 8,933,000 | 32,944,000 | 36,053,000 | ||||||||||||
Operating expenses | 1,222,000 | 6,733,000 | 8,590,000 | ||||||||||||
Real estate taxes | 1,402,000 | 4,571,000 | 4,536,000 | ||||||||||||
Ground rent | 3,001,000 | 7,974,000 | 6,363,000 | ||||||||||||
Interest expense, net of interest income | 879,000 | 2,933,000 | 3,189,000 | ||||||||||||
Depreciation and amortization | 433,000 | 4,826,000 | 7,672,000 | ||||||||||||
Total expenses | 6,937,000 | 27,037,000 | 30,350,000 | ||||||||||||
Net income from discontinued operations | 1,996,000 | 5,907,000 | 5,703,000 | ||||||||||||
673 First Avenue | |||||||||||||||
Properties Sold | |||||||||||||||
Approximate Usable Square Feet (sqft) | 422,000 | ||||||||||||||
Sales Price | 145,000,000 | ||||||||||||||
Gain on Sale | 117,600,000 | [1] | |||||||||||||
Employee compensation award | 3,400,000 | ||||||||||||||
333 West 34th Street | |||||||||||||||
Properties Sold | |||||||||||||||
Approximate Usable Square Feet (sqft) | 345,400 | ||||||||||||||
Sales Price | 220,300,000 | ||||||||||||||
Gain on Sale | 13,800,000 | [1] | |||||||||||||
Employee compensation award | $3,000,000 | ||||||||||||||
[1] | The gain on sale for 673 First Avenue and 333 West 34th Street are net of a $3.4 million and $3.0 million, respectively, employee compensation award accrued in connection with the realization of this investment gain as a bonus to certain employees that were instrumental in realizing the gain on sale. |
Preferred_Equity_and_Other_Inv2
Preferred Equity and Other Investments (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Jan. 31, 2013 | Jul. 31, 2012 | Nov. 30, 2011 | Jun. 30, 2012 | |||
extension | ||||||||||
Debt and preferred equity investments | ||||||||||
Senior Financing | $620,000,000 | |||||||||
Carrying Value | 132,995,000 | [1] | 369,364,000 | [1] | ||||||
Equity in net gain on sale of interest in unconsolidated joint venture | 0 | 0 | 1,001,000 | |||||||
Debt and preferred equity | ||||||||||
Debt and preferred equity investments | ||||||||||
Interest rate (as a percent) | 10.89% | |||||||||
Preferred Equity, July 2015 | ||||||||||
Debt and preferred equity investments | ||||||||||
Senior Financing | 550,000,000 | [2] | ||||||||
Carrying Value | 123,041,000 | [1],[2] | 115,198,000 | [1],[2] | ||||||
Preferred Equity, November 2017 | ||||||||||
Debt and preferred equity investments | ||||||||||
Senior Financing | 70,000,000 | |||||||||
Carrying Value | 9,954,000 | [1] | 9,940,000 | [1] | ||||||
Preferred Equity, Repaid April 2014 | ||||||||||
Debt and preferred equity investments | ||||||||||
Senior Financing | 0 | [3] | ||||||||
Carrying Value | 0 | [1],[3] | 25,896,000 | [1],[3] | ||||||
Preferred Equity, Repaid November 2014 | ||||||||||
Debt and preferred equity investments | ||||||||||
Senior Financing | 0 | [2],[4] | ||||||||
Carrying Value | 0 | [1],[2],[4] | 218,330,000 | [1],[2],[4] | ||||||
Participating Financing | ||||||||||
Debt and preferred equity investments | ||||||||||
Equity method investment | 40,200,000 | 40,000,000 | ||||||||
Number of one-year extension options | 3 | |||||||||
Extension period (years) | 1 year | |||||||||
Last extension period (years) | 2 years | |||||||||
Joint Venture | ||||||||||
Debt and preferred equity investments | ||||||||||
Interest rate (as a percent) | 8.75% | |||||||||
Ownership percentage | 40.00% | |||||||||
Investment In joint venture | 20,000,000 | |||||||||
One Court Square | ||||||||||
Debt and preferred equity investments | ||||||||||
Impairment charges recorded | 5,800,000 | |||||||||
Sales price | 481,100,000 | |||||||||
Outstanding mortgage debt | 315,000,000 | |||||||||
Equity in net gain on sale of interest in unconsolidated joint venture | $1,000,000 | |||||||||
One Court Square | Joint Venture | ||||||||||
Debt and preferred equity investments | ||||||||||
Ownership percentage | 30.00% | |||||||||
[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. | |||||||||
[4] | This preferred equity investment was redeemed in November 2014. |
Mortgages_and_Other_Loans_Paya2
Mortgages and Other Loans Payable (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2012 | ||||||
Mortgage note and other loan payable | |||||||||||||||||||
Secured debt | $50,000,000 | ||||||||||||||||||
Mortgages and other loans payable | 500,000,000 | 896,346,000 | 500,000,000 | 896,346,000 | 500,000,000 | ||||||||||||||
(Gain) loss on early extinguishment of debt | 6,866,000 | 0 | 519,000 | 0 | 0 | 0 | 10,000 | 66,000 | 7,385,000 | 76,000 | 6,904,000 | ||||||||
Gross book value of the property and investment collateralizing the mortgage note and other loan payable | 1,300,000,000 | 2,200,000,000 | 1,300,000,000 | 2,200,000,000 | 1,300,000,000 | ||||||||||||||
Other loan payable | |||||||||||||||||||
Mortgage note and other loan payable | |||||||||||||||||||
Secured debt | 0 | [1] | 50,000,000 | [1] | 0 | [1] | 50,000,000 | [1] | 0 | [1] | |||||||||
919 Third Avenue | |||||||||||||||||||
Mortgage note and other loan payable | |||||||||||||||||||
Interest rate (as a percent) | 5.12% | [2],[3] | |||||||||||||||||
Secured debt | 500,000,000 | [3] | 500,000,000 | [3] | 500,000,000 | [3] | 500,000,000 | [3] | 500,000,000 | [3] | |||||||||
Controlling interest in the joint venture (as a percent) | 51.00% | 51.00% | 51.00% | ||||||||||||||||
16 Court Street | |||||||||||||||||||
Mortgage note and other loan payable | |||||||||||||||||||
Secured debt | 0 | [4] | 79,243,000 | [4] | 0 | [4] | 79,243,000 | [4] | 0 | [4] | |||||||||
(Gain) loss on early extinguishment of debt | 500,000 | ||||||||||||||||||
609 Partners, LLC | |||||||||||||||||||
Mortgage note and other loan payable | |||||||||||||||||||
Unsecured debt | 0 | [5] | 23,000 | [5] | 0 | [5] | 23,000 | [5] | 0 | [5] | |||||||||
Series E preferred units canceled (in shares) | 22,658 | ||||||||||||||||||
125 Park Avenue | |||||||||||||||||||
Mortgage note and other loan payable | |||||||||||||||||||
Secured debt | 0 | [6] | 146,250,000 | [6] | 0 | [6] | 146,250,000 | [6] | 0 | [6] | |||||||||
625 Madison Avenue | |||||||||||||||||||
Mortgage note and other loan payable | |||||||||||||||||||
Secured debt | 0 | [7] | 120,830,000 | [7] | 0 | [7] | 120,830,000 | [7] | 0 | [7] | |||||||||
(Gain) loss on early extinguishment of debt | $6,900,000 | ||||||||||||||||||
[1] | In November 2014, we repaid the loan. | ||||||||||||||||||
[2] | Effective weighted average interest rate for the year ended December 31, 2014. | ||||||||||||||||||
[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. | ||||||||||||||||||
[6] | In October 2014, we repaid the loan at maturity. | ||||||||||||||||||
[7] | In December 2014, we prepaid the loan and incurred a loss on early extinguishment of debt ofB $6.9 million. |
Corporate_Indebtedness_Details
Corporate Indebtedness (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2014 | Mar. 31, 2014 | Nov. 30, 2012 | Jan. 31, 2015 | |||
Corporate Indebtedness | |||||||||
Maximum borrowing capacity | 1,600,000,000 | ||||||||
Revolving credit facility | 385,000,000 | 220,000,000 | |||||||
Debt disclosures by scheduled maturity date | |||||||||
Term loan and senior unsecured notes | 1,788,001,000 | 1,430,792,000 | |||||||
Scheduled amortization and principal repayments | |||||||||
2015 | 7,000 | ||||||||
2016 | 258,874,000 | ||||||||
2017 | 7,411,000 | ||||||||
2018 | 642,799,000 | ||||||||
2019 | 841,207,000 | ||||||||
Thereafter | 923,017,000 | ||||||||
Total amortization of debt and principal repayments | 2,673,315,000 | ||||||||
Interest expense | |||||||||
Interest expense | 120,076,000 | 123,464,000 | 120,346,000 | ||||||
Interest income | -70,000 | -6,000 | -10,000 | ||||||
Interest expense, net | 120,006,000 | 123,458,000 | 120,336,000 | ||||||
Interest capitalized | 3,753,000 | 0 | 0 | ||||||
Term loan | |||||||||
Corporate Indebtedness | |||||||||
Maximum borrowing capacity | 833,000,000 | 783,000,000 | |||||||
Increase in credit facility | 50,000,000 | 383,000,000 | |||||||
Decrease in interest-rate margin (as a percent) | 0.25% | ||||||||
Debt disclosures by scheduled maturity date | |||||||||
Effective Rate (as a percent) | 1.67% | ||||||||
Scheduled amortization and principal repayments | |||||||||
2015 | 0 | ||||||||
2016 | 0 | ||||||||
2017 | 0 | ||||||||
2018 | 0 | ||||||||
2019 | 833,000,000 | ||||||||
Thereafter | 0 | ||||||||
Total amortization of debt and principal repayments | 833,000,000 | ||||||||
Revolving credit facility | |||||||||
Corporate Indebtedness | |||||||||
Maximum borrowing capacity | 1,200,000,000 | ||||||||
Maximum borrowing capacity, optional expansion | 1,500,000,000 | ||||||||
Revolving credit facility | 385,000,000 | ||||||||
Debt disclosures by scheduled maturity date | |||||||||
Effective Rate (as a percent) | 1.61% | ||||||||
Scheduled amortization and principal repayments | |||||||||
2015 | 0 | ||||||||
2016 | 0 | ||||||||
2017 | 0 | ||||||||
2018 | 385,000,000 | ||||||||
2019 | 0 | ||||||||
Thereafter | 0 | ||||||||
Total amortization of debt and principal repayments | 385,000,000 | ||||||||
Revolving credit facility | Minimum | |||||||||
Corporate Indebtedness | |||||||||
Unused balance fee (as a percent) | 0.15% | ||||||||
Facility fee on total commitments, payable quarterly in arrears (as a percent) | 0.30% | ||||||||
Revolving credit facility | Maximum | |||||||||
Corporate Indebtedness | |||||||||
Unused balance fee (as a percent) | 0.35% | ||||||||
Credit Facility 2012 | |||||||||
Corporate Indebtedness | |||||||||
Letters of credit | 113,200,000 | ||||||||
Ability to borrow under line of credit facility | 701,800,000 | ||||||||
Debt origination | 3,000,000 | ||||||||
Line of Credit 2011 | |||||||||
Corporate Indebtedness | |||||||||
Maximum borrowing capacity | 1,500,000,000 | ||||||||
Line of Credit 2011 | Minimum | |||||||||
Corporate Indebtedness | |||||||||
Unused balance fee (as a percent) | 0.18% | ||||||||
Line of Credit 2011 | Maximum | |||||||||
Corporate Indebtedness | |||||||||
Unused balance fee (as a percent) | 0.45% | ||||||||
Senior Unsecured Notes | |||||||||
Scheduled amortization and principal repayments | |||||||||
2015 | 7,000 | ||||||||
2016 | 255,308,000 | ||||||||
2017 | 0 | ||||||||
2018 | 250,000,000 | ||||||||
2019 | 0 | ||||||||
Thereafter | 450,000,000 | ||||||||
Total amortization of debt and principal repayments | 955,315,000 | ||||||||
Mortgage and Other Loans Payable | |||||||||
Scheduled Amortization | |||||||||
2015 | 0 | ||||||||
2016 | 3,566,000 | ||||||||
2017 | 7,411,000 | ||||||||
2018 | 7,799,000 | ||||||||
2019 | 8,207,000 | ||||||||
Thereafter | 31,423,000 | ||||||||
Total amortization of debt | 58,406,000 | ||||||||
Principal Repayments | |||||||||
2015 | 0 | ||||||||
2016 | 0 | ||||||||
2017 | 0 | ||||||||
2018 | 0 | ||||||||
2019 | 0 | ||||||||
Thereafter | 441,594,000 | ||||||||
Total principal repayments | 441,594,000 | ||||||||
LIBOR | Term loan | |||||||||
Corporate Indebtedness | |||||||||
Interest rate added to base rate (as a percent) | 1.40% | ||||||||
LIBOR | Term loan | Minimum | |||||||||
Corporate Indebtedness | |||||||||
Interest rate added to base rate (as a percent) | 0.95% | ||||||||
LIBOR | Term loan | Maximum | |||||||||
Corporate Indebtedness | |||||||||
Interest rate added to base rate (as a percent) | 1.90% | ||||||||
LIBOR | Revolving credit facility | |||||||||
Corporate Indebtedness | |||||||||
Interest rate added to base rate (as a percent) | 1.45% | ||||||||
LIBOR | Revolving credit facility | Minimum | |||||||||
Corporate Indebtedness | |||||||||
Interest rate added to base rate (as a percent) | 1.00% | ||||||||
LIBOR | Revolving credit facility | Maximum | |||||||||
Corporate Indebtedness | |||||||||
Interest rate added to base rate (as a percent) | 1.75% | ||||||||
LIBOR | Line of Credit 2011 | Minimum | |||||||||
Corporate Indebtedness | |||||||||
Interest rate added to base rate (as a percent) | 1.00% | ||||||||
LIBOR | Line of Credit 2011 | Maximum | |||||||||
Corporate Indebtedness | |||||||||
Interest rate added to base rate (as a percent) | 1.85% | ||||||||
Subsequent Event | Term loan | |||||||||
Corporate Indebtedness | |||||||||
Decrease in interest-rate margin (as a percent) | 0.20% | ||||||||
Decrease in facility fee (as a percent) | 0.05% | ||||||||
Subsequent Event | Revolving credit facility | |||||||||
Corporate Indebtedness | |||||||||
Maximum borrowing capacity | 1,200,000,000 | ||||||||
Senior Unsecured Notes | |||||||||
Debt disclosures by scheduled maturity date | |||||||||
Unpaid Principal Balance | 955,315,000 | ||||||||
Term loan and senior unsecured notes | 955,001,000 | 1,030,792,000 | |||||||
Senior Unsecured Notes | 6.00% senior unsecured notes maturing on March 31, 2016 | |||||||||
Debt disclosures by scheduled maturity date | |||||||||
Unpaid Principal Balance | 255,308,000 | ||||||||
Term loan and senior unsecured notes | 255,250,000 | 255,206,000 | |||||||
Coupon Rate (as a percent) | 6.00% | [1] | |||||||
Effective Rate (as a percent) | 6.00% | ||||||||
Term (in Years) | 10 years | ||||||||
Senior Unsecured Notes | 5.00% senior unsecured notes maturing on August 15, 2018 | |||||||||
Debt disclosures by scheduled maturity date | |||||||||
Unpaid Principal Balance | 250,000,000 | [2] | |||||||
Term loan and senior unsecured notes | 249,744,000 | [2] | 249,681,000 | [2] | |||||
Coupon Rate (as a percent) | 5.00% | [1],[2] | |||||||
Effective Rate (as a percent) | 5.00% | [2] | |||||||
Term (in Years) | 7 years | [2] | |||||||
Senior Unsecured Notes | 7.75% senior unsecured notes maturing on March 15, 2020 | |||||||||
Debt disclosures by scheduled maturity date | |||||||||
Unpaid Principal Balance | 250,000,000 | [2] | |||||||
Term loan and senior unsecured notes | 250,000,000 | [2] | 250,000,000 | [2] | |||||
Coupon Rate (as a percent) | 7.75% | [1],[2] | |||||||
Effective Rate (as a percent) | 7.75% | [2] | |||||||
Term (in Years) | 10 years | [2] | |||||||
Senior Unsecured Notes | 4.50% senior unsecured notes maturing on December 01, 2022 | |||||||||
Debt disclosures by scheduled maturity date | |||||||||
Unpaid Principal Balance | 200,000,000 | [2] | |||||||
Term loan and senior unsecured notes | 200,000,000 | [2] | 200,000,000 | [2] | |||||
Coupon Rate (as a percent) | 4.50% | [1],[2] | |||||||
Effective Rate (as a percent) | 4.50% | [2] | |||||||
Term (in Years) | 10 years | [2] | |||||||
Senior Unsecured Notes | 4.00% senior unsecured notes maturing on June 15, 2025 | |||||||||
Debt disclosures by scheduled maturity date | |||||||||
Unpaid Principal Balance | 7,000 | [3] | |||||||
Term loan and senior unsecured notes | 7,000 | [3] | 7,000 | [3] | |||||
Coupon Rate (as a percent) | 4.00% | [1],[3] | |||||||
Effective Rate (as a percent) | 4.00% | [3] | |||||||
Term (in Years) | 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 (in usd per share) | $1.35 | ||||||||
Senior Unsecured Notes | Senior Unsecured Notes Due August 15, 2014 | |||||||||
Debt disclosures by scheduled maturity date | |||||||||
Unpaid Principal Balance | 0 | [4] | |||||||
Term loan and senior unsecured notes | $0 | [4] | $75,898,000 | [4] | |||||
Senior Unsecured Notes | 3.00% exchangeable senior notes due 2017 | |||||||||
Debt disclosures by scheduled maturity date | |||||||||
Coupon Rate (as a percent) | 3.00% | ||||||||
[1] | Interest on the senior unsecured notes is payable semi-annually with principal and unpaid interest due on the scheduled maturity dates. | ||||||||
[2] | Issued by SL Green, the Operating Partnership and ROP, as 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 7.7461B shares of SL Green's common stock perB $1,000B of principal amount of debentures and the adjusted reference dividend for the debentures isB $1.3491. | ||||||||
[4] | In August 2014, these notes were repaid at maturity. |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | ||
Fair Value of Financial Instruments | |||||
Preferred equity investments | $132,995,000 | [1] | $369,364,000 | [1] | |
Carrying Value | Level 3 | |||||
Fair Value of Financial Instruments | |||||
Preferred equity investments | 132,995,000 | [2],[3] | 369,364,000 | [2] | |
Fixed rate debt | 1,485,001,000 | 1,877,895,000 | |||
Variable rate debt | 1,188,000,000 | 669,243,000 | |||
Total | 2,673,001,000 | 2,547,138,000 | |||
Fair Value | Level 3 | |||||
Fair Value of Financial Instruments | |||||
Fixed rate debt | 1,616,490,000 | 1,993,259,000 | |||
Variable rate debt | 1,230,470,000 | 684,871,000 | |||
Total | 2,846,960,000 | 2,678,130,000 | |||
Fair Value | Level 3 | Minimum | |||||
Fair Value of Financial Instruments | |||||
Preferred equity investments | 146,300,000 | 400,000,000 | |||
Fair Value | Level 3 | Maximum | |||||
Fair Value of Financial Instruments | |||||
Preferred equity investments | 166,200,000 | ||||
Participating Financing | |||||
Fair Value of Financial Instruments | |||||
Equity method investment | $40,200,000 | $40,000,000 | |||
[1] | Carrying value is net of discounts and deferred origination fees. | ||||
[2] | At December 31, 2014, preferred equity investments had an estimated fair value ranging between $146.3 million and $166.2 million. At DecemberB 31, 2013, preferred equity investments had an estimated fair value of $400.0 million. | ||||
[3] | Excludes one investment with a book value of $40.2 million as of December 31, 2014, which we accounted for under the equity method accounting as a result of meeting the criteria of a real estate investment under the guidance for Acquisition, Development and Construction arrangements. |
Financial_Instruments_Derivati2
Financial Instruments: Derivatives and Hedging (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative [Line Items] | |||
Loss from settlement of hedges included in accumulated other comprehensive loss | $2,300,000 | $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 | ||
Interest Rate Swap Expiring in June 2016 | |||
Derivative [Line Items] | |||
Notional Value | 30,000,000 | ||
Strike Rate (percent) | 2.30% | ||
Fair Value | -774,000 | ||
Interest Rate Swap | |||
Derivative [Line Items] | |||
Amount of Loss Recognized in Other Comprehensive Loss (Effective Portion) on derivatives qualifying as hedges | -135,000 | 0 | -794,000 |
Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Interest Expense (Effective Portion) on derivatives qualifying as hedges | 1,010,000 | 944,000 | 986,000 |
Amount of Gain Recognized in Interest Expense (Ineffective Portion) on derivatives qualifying as hedges | $4,000 | $3,000 | $3,000 |
Rental_Income_Details
Rental Income (Details) (Consolidated Properties, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Consolidated Properties | |
Approximate future minimum rents to be received over the next five years and thereafter for non-cancelable operating leases | |
2015 | $512,345 |
2016 | 489,993 |
2017 | 454,877 |
2018 | 426,272 |
2019 | 401,054 |
Thereafter | 1,804,385 |
Total minimum lease payments | $4,088,926 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Affiliate | |||
Related Party Transactions | |||
Profit participation received by related party | $3.30 | $3 | $3.40 |
Alliance Building Services | |||
Related Party Transactions | |||
Payments made for services | 8.3 | 8.9 | 7.8 |
SL Green | |||
Related Party Transactions | |||
Allocation of salary and other operating costs from related party | 9.3 | 8.6 | 7.6 |
Insurance expense incurred | $6.10 | $5.80 | $5.30 |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Multi-employer plans | |||
Employer contributions | $8,639,000 | $8,406,000 | $7,751,000 |
Pension Plan | |||
Multi-employer plans | |||
Plan contributions from all employers | 224,500,000 | 221,900,000 | 212,700,000 |
Health Plan | |||
Multi-employer plans | |||
Plan contributions from all employers | 923,500,000 | 893,300,000 | |
Contributions by company (less than) | 5.00% | ||
Pension Plan | |||
Multi-employer plans | |||
Employer contributions | 1,426,000 | 1,353,000 | 1,197,000 |
Health Plan | |||
Multi-employer plans | |||
Employer contributions | 4,283,000 | 4,179,000 | 3,764,000 |
Other plans | |||
Multi-employer plans | |||
Employer contributions | $2,930,000 | $2,874,000 | $2,790,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and contingencies | |
Minimum initial term of noncancellable operating leases | 1 year |
Non-cancellable operating leases | |
2015 | $15,086,000 |
2016 | 15,086,000 |
2017 | 15,086,000 |
2018 | 15,086,000 |
2019 | 15,086,000 |
Thereafter | 273,964,000 |
Total minimum lease payments | 349,394,000 |
461 Fifth Avenue | |
Commitments and contingencies | |
Required annual ground lease payments | 2,100,000 |
Term of first renewal option | 21 years |
Number of renewal options available (extension options) | 3 |
Term of second renewal option | 21 years |
Term of third renewal option | 15 years |
625 Madison Avenue | |
Commitments and contingencies | |
Required annual ground lease payments | 4,600,000 |
Term of first renewal option | 23 years |
Number of renewal options available (extension options) | 2 |
Term of second renewal option | 23 years |
1185 Avenue of the Americas | |
Commitments and contingencies | |
Required annual ground lease payments | $6,900,000 |
Term of first renewal option | 23 years |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | |||||||||||
Segment information | |||||||||||
Number of reportable segments | 2 | ||||||||||
Total revenues | $174,735 | $171,187 | $167,254 | $165,061 | $170,766 | $153,330 | $160,171 | $156,640 | $678,237 | $640,907 | $570,851 |
Income from continuing operations | 62,578 | 68,052 | 34,748 | ||||||||
Total assets | 6,384,874 | 6,472,016 | 6,384,874 | 6,472,016 | |||||||
Leverage rate assumption (as a percent) | 100.00% | ||||||||||
Real Estate Segment | |||||||||||
Segment information | |||||||||||
Total revenues | 643,096 | 597,681 | 561,354 | ||||||||
Income from continuing operations | 30,873 | 27,934 | 26,376 | ||||||||
Total assets | 6,211,574 | 6,101,484 | 6,211,574 | 6,101,484 | |||||||
Preferred Equity Segment | |||||||||||
Segment information | |||||||||||
Total revenues | 35,141 | 43,226 | 9,497 | ||||||||
Income from continuing operations | 31,705 | 40,118 | 8,372 | ||||||||
Total assets | $173,300 | $370,532 | $173,300 | $370,532 |
Quarterly_Financial_Data_of_th2
Quarterly Financial Data of the Company (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $174,735 | $171,187 | $167,254 | $165,061 | $170,766 | $153,330 | $160,171 | $156,640 | $678,237 | $640,907 | $570,851 |
Income from continuing operations before equity in net income from unconsolidated joint ventures, loss on extinguishment of debt, net income from discontinued operations, (loss) gain on sale of discontinued operations | 21,077 | 16,203 | 16,400 | 13,473 | 19,291 | 3,623 | 22,062 | 19,210 | 67,153 | 64,186 | 39,685 |
Equity in net income from unconsolidated joint ventures | 848 | 868 | 1,094 | 0 | 2,615 | 480 | 481 | 366 | 2,810 | 3,942 | 966 |
Loss on extinguishment of debt | -6,866 | 0 | -519 | 0 | 0 | 0 | -10 | -66 | -7,385 | -76 | -6,904 |
Net (loss) income from discontinued operations | 0 | -58 | 1,348 | 706 | 175 | 1,622 | 3,147 | 963 | 1,996 | 5,907 | 5,703 |
(Loss) gain on sale of discontinued operations | 0 | -250 | 117,829 | 0 | -31 | 13,787 | 0 | 0 | 117,579 | 13,756 | 0 |
Net income | 15,059 | 16,763 | 136,152 | 14,179 | 22,050 | 19,512 | 25,680 | 20,473 | 182,153 | 87,715 | 40,451 |
Net income attributable to noncontrolling interests in other partnerships | -938 | -841 | -801 | -61 | -689 | -1,399 | -1,599 | -1,513 | -2,641 | -5,200 | -6,013 |
Net income attributable to ROP common unitholder | $14,121 | $15,922 | $135,351 | $14,118 | $21,361 | $18,113 | $24,081 | $18,960 | $179,512 | $82,515 | $34,438 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 1 Months Ended | |||
Mar. 31, 2014 | Jan. 31, 2015 | Nov. 30, 2012 | Dec. 31, 2014 | |
Subsequent Event [Line Items] | ||||
Credit facility, maximum borrowing capacity | $1,600,000,000 | |||
Revolving credit facility | ||||
Subsequent Event [Line Items] | ||||
Credit facility, maximum borrowing capacity | 1,200,000,000 | |||
Revolving credit facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Credit facility, maximum borrowing capacity | 1,200,000,000 | |||
Term loan | ||||
Subsequent Event [Line Items] | ||||
Credit facility, maximum borrowing capacity | $783,000,000 | $833,000,000 | ||
Decrease in interest-rate margin (as a percent) | 0.25% | |||
Term loan | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Decrease in interest-rate margin (as a percent) | 0.20% | |||
Decrease in facility fee (as a percent) | 0.05% |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Tenant and other receivablesballowance | |||
Changes in valuation allowance | |||
Balance at Beginning of Year | $5,323 | $5,497 | $3,837 |
Additions Charged Against Operations/Recovery | 5,573 | 4,242 | 4,801 |
Uncollectible Accounts Written-off | -5,198 | -4,416 | -3,141 |
Balance at End of Year | 5,698 | 5,323 | 5,497 |
Deferred rent receivableballowance | |||
Changes in valuation allowance | |||
Balance at Beginning of Year | 17,661 | 18,812 | 17,545 |
Additions Charged Against Operations/Recovery | 2,913 | 4,345 | 4,044 |
Uncollectible Accounts Written-off | -4,000 | -5,496 | -2,777 |
Balance at End of Year | $16,574 | $17,661 | $18,812 |
Schedule_III_Real_Estate_And_A1
Schedule III - Real Estate And Accumulated Depreciation (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
In Thousands, unless otherwise specified | |||||
Real Estate And Accumulated Depreciation | |||||
Encumbrances | $500,000 | ||||
Initial Cost | |||||
Land | 1,464,603 | ||||
Building & Improvements | 4,828,455 | ||||
Cost Capitalized Subsequent To Acquisition | |||||
Land | 3,396 | ||||
Building & Improvements | 504,741 | ||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 1,467,999 | ||||
Building & Improvements | 5,333,196 | ||||
Total | 6,801,195 | 6,556,482 | 6,178,574 | 5,691,459 | |
Accumulated Depreciation | 1,092,295 | 953,093 | 821,463 | 675,783 | |
810 Seventh Avenue | |||||
Initial Cost | |||||
Land | 114,077 | [1] | |||
Building & Improvements | 476,386 | [1] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 54,441 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 114,077 | [1] | |||
Building & Improvements | 530,827 | [1] | |||
Total | 644,904 | [1] | |||
Accumulated Depreciation | 114,957 | [1] | |||
461 Fifth Avenue | |||||
Initial Cost | |||||
Building & Improvements | 62,695 | [1] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 9,626 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Building & Improvements | 72,321 | [1] | |||
Total | 72,321 | [1] | |||
Accumulated Depreciation | 21,838 | [1] | |||
750 Third Avenue | |||||
Initial Cost | |||||
Land | 51,093 | [1] | |||
Building & Improvements | 205,972 | [1] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 35,951 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 51,093 | [1] | |||
Building & Improvements | 241,923 | [1] | |||
Total | 293,016 | [1] | |||
Accumulated Depreciation | 70,362 | [1] | |||
919 Third Avenue | |||||
Real Estate And Accumulated Depreciation | |||||
Encumbrances | 500,000 | [1],[2] | |||
Initial Cost | |||||
Land | 223,529 | [1],[2] | |||
Building & Improvements | 1,033,198 | [1],[2] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 19,239 | [1],[2] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 223,529 | [1],[2] | |||
Building & Improvements | 1,052,437 | [1],[2] | |||
Total | 1,275,966 | [1],[2] | |||
Accumulated Depreciation | 216,685 | [1],[2] | |||
Interest in property (as a percent) | 51.00% | ||||
555 W. 57th Street | |||||
Initial Cost | |||||
Land | 18,846 | [1] | |||
Building & Improvements | 78,704 | [1] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 47,933 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 18,846 | [1] | |||
Building & Improvements | 126,637 | [1] | |||
Total | 145,483 | [1] | |||
Accumulated Depreciation | 48,659 | [1] | |||
1185 Avenue of the Americas | |||||
Initial Cost | |||||
Building & Improvements | 728,213 | [1] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 35,260 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Building & Improvements | 763,473 | [1] | |||
Total | 763,473 | [1] | |||
Accumulated Depreciation | 175,368 | [1] | |||
1350 Avenue of the Americas | |||||
Initial Cost | |||||
Land | 91,038 | [1] | |||
Building & Improvements | 380,744 | [1] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 29,132 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 91,038 | [1] | |||
Building & Improvements | 409,876 | [1] | |||
Total | 500,914 | [1] | |||
Accumulated Depreciation | 90,325 | [1] | |||
1100 King Street - 1-6 International Drive | |||||
Initial Cost | |||||
Land | 49,392 | [3] | |||
Building & Improvements | 104,376 | [3] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Land | 2,473 | [3] | |||
Building & Improvements | 19,385 | [3] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 51,865 | [3] | |||
Building & Improvements | 123,761 | [3] | |||
Total | 175,626 | [3] | |||
Accumulated Depreciation | 31,003 | [3] | |||
520 White Plains Road | |||||
Initial Cost | |||||
Land | 6,324 | [3] | |||
Building & Improvements | 26,096 | [3] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 4,785 | [3] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 6,324 | [3] | |||
Building & Improvements | 30,881 | [3] | |||
Total | 37,205 | [3] | |||
Accumulated Depreciation | 7,755 | [3] | |||
115-117 Stevens Avenue | |||||
Initial Cost | |||||
Land | 5,933 | [3] | |||
Building & Improvements | 23,826 | [3] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 6,334 | [3] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 5,933 | [3] | |||
Building & Improvements | 30,160 | [3] | |||
Total | 36,093 | [3] | |||
Accumulated Depreciation | 7,967 | [3] | |||
100 Summit Lake Drive | |||||
Initial Cost | |||||
Land | 10,526 | [3] | |||
Building & Improvements | 43,109 | [3] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 7,213 | [3] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 10,526 | [3] | |||
Building & Improvements | 50,322 | [3] | |||
Total | 60,848 | [3] | |||
Accumulated Depreciation | 11,863 | [3] | |||
200 Summit Lake Drive | |||||
Initial Cost | |||||
Land | 11,183 | [3] | |||
Building & Improvements | 47,906 | [3] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 7,217 | [3] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 11,183 | [3] | |||
Building & Improvements | 55,123 | [3] | |||
Total | 66,306 | [3] | |||
Accumulated Depreciation | 12,600 | [3] | |||
500 Summit Lake Drive | |||||
Initial Cost | |||||
Land | 9,777 | [3] | |||
Building & Improvements | 39,048 | [3] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 5,643 | [3] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 9,777 | [3] | |||
Building & Improvements | 44,691 | [3] | |||
Total | 54,468 | [3] | |||
Accumulated Depreciation | 9,495 | [3] | |||
140 Grand Street | |||||
Initial Cost | |||||
Land | 6,865 | [3] | |||
Building & Improvements | 28,264 | [3] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 4,606 | [3] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 6,865 | [3] | |||
Building & Improvements | 32,870 | [3] | |||
Total | 39,735 | [3] | |||
Accumulated Depreciation | 7,734 | [3] | |||
360 Hamilton Avenue | |||||
Initial Cost | |||||
Land | 29,497 | [3] | |||
Building & Improvements | 118,250 | [3] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 12,851 | [3] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 29,497 | [3] | |||
Building & Improvements | 131,101 | [3] | |||
Total | 160,598 | [3] | |||
Accumulated Depreciation | 29,031 | [3] | |||
7 Landmark Square | |||||
Initial Cost | |||||
Land | 2,088 | [4] | |||
Building & Improvements | 7,748 | [4] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Land | -367 | [4] | |||
Building & Improvements | -133 | [4] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 1,721 | [4] | |||
Building & Improvements | 7,615 | [4] | |||
Total | 9,336 | [4] | |||
Accumulated Depreciation | 600 | [4] | |||
680 Washington Boulevard | |||||
Initial Cost | |||||
Land | 11,696 | [2],[4] | |||
Building & Improvements | 45,364 | [2],[4] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 4,561 | [2],[4] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 11,696 | [2],[4] | |||
Building & Improvements | 49,925 | [2],[4] | |||
Total | 61,621 | [2],[4] | |||
Accumulated Depreciation | 11,118 | [2],[4] | |||
Interest in property (as a percent) | 51.00% | ||||
750 Washington Boulevard | |||||
Initial Cost | |||||
Land | 16,916 | [2],[4] | |||
Building & Improvements | 68,849 | [2],[4] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 7,433 | [2],[4] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 16,916 | [2],[4] | |||
Building & Improvements | 76,282 | [2],[4] | |||
Total | 93,198 | [2],[4] | |||
Accumulated Depreciation | 16,313 | [2],[4] | |||
Interest in property (as a percent) | 51.00% | ||||
1010 Washington Boulevard | |||||
Initial Cost | |||||
Land | 7,747 | [4] | |||
Building & Improvements | 30,423 | [4] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 5,058 | [4] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 7,747 | [4] | |||
Building & Improvements | 35,481 | [4] | |||
Total | 43,228 | [4] | |||
Accumulated Depreciation | 7,695 | [4] | |||
1055 Washington Boulevard | |||||
Initial Cost | |||||
Land | 13,516 | [4] | |||
Building & Improvements | 53,228 | [4] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 3,492 | [4] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 13,516 | [4] | |||
Building & Improvements | 56,720 | [4] | |||
Total | 70,236 | [4] | |||
Accumulated Depreciation | 12,515 | [4] | |||
400 Summit Lake Drive | |||||
Initial Cost | |||||
Land | 38,889 | [3] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Land | 285 | [3] | |||
Building & Improvements | 1 | [3] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 39,174 | [3] | |||
Building & Improvements | 1 | [3] | |||
Total | 39,175 | [3] | |||
Accumulated Depreciation | 1 | [3] | |||
609 Fifth Avenue | |||||
Initial Cost | |||||
Land | 36,677 | [1] | |||
Building & Improvements | 145,954 | [1] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 7,814 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 36,677 | [1] | |||
Building & Improvements | 153,768 | [1] | |||
Total | 190,445 | [1] | |||
Accumulated Depreciation | 32,939 | [1] | |||
110 East 42nd Street | |||||
Initial Cost | |||||
Land | 34,000 | [1] | |||
Building & Improvements | 46,411 | [1] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 13,882 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 34,000 | [1] | |||
Building & Improvements | 60,293 | [1] | |||
Total | 94,293 | [1] | |||
Accumulated Depreciation | 9,080 | [1] | |||
304 Park Avenue South | |||||
Initial Cost | |||||
Land | 54,189 | [1] | |||
Building & Improvements | 75,619 | [1] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Land | 300 | [1] | |||
Building & Improvements | 6,336 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 54,489 | [1] | |||
Building & Improvements | 81,955 | [1] | |||
Total | 136,444 | [1] | |||
Accumulated Depreciation | 7,465 | [1] | |||
635 Sixth Avenue | |||||
Initial Cost | |||||
Land | 24,180 | [1] | |||
Building & Improvements | 37,158 | [1] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Land | 163 | [1] | |||
Building & Improvements | 38,104 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 24,343 | [1] | |||
Building & Improvements | 75,262 | [1] | |||
Total | 99,605 | [1] | |||
Accumulated Depreciation | 0 | [1] | |||
641 Sixth Avenue | |||||
Initial Cost | |||||
Land | 45,668 | [1] | |||
Building & Improvements | 67,316 | [1] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Land | 308 | [1] | |||
Building & Improvements | 793 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 45,976 | [1] | |||
Building & Improvements | 68,109 | [1] | |||
Total | 114,085 | [1] | |||
Accumulated Depreciation | 5,076 | [1] | |||
315 West 33rd Street | |||||
Initial Cost | |||||
Land | 195,834 | [1] | |||
Building & Improvements | 164,429 | [1] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Land | 0 | ||||
Building & Improvements | 3,180 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 195,834 | [1] | |||
Building & Improvements | 167,609 | [1] | |||
Total | 363,443 | [1] | |||
Accumulated Depreciation | 5,396 | [1] | |||
16 Court Street | |||||
Initial Cost | |||||
Land | 19,217 | [5],[6] | |||
Building & Improvements | 63,210 | [5],[6] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Land | 0 | [5],[6] | |||
Building & Improvements | 4,954 | [5],[6] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 19,217 | [5],[6] | |||
Building & Improvements | 68,164 | [5],[6] | |||
Total | 87,381 | [5],[6] | |||
Accumulated Depreciation | 4,604 | [5],[6] | |||
131-137 Spring Street | |||||
Initial Cost | |||||
Land | 27,021 | [1],[5] | |||
Building & Improvements | 105,342 | [1],[5] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Land | 154 | [1],[5] | |||
Building & Improvements | 3,384 | [1],[5] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 27,175 | [1],[5] | |||
Building & Improvements | 108,726 | [1],[5] | |||
Total | 135,901 | [1],[5] | |||
Accumulated Depreciation | 5,606 | [1],[5] | |||
125 Chubb Way | |||||
Initial Cost | |||||
Land | 5,884 | [5],[7] | |||
Building & Improvements | 25,958 | [5],[7] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 23,832 | [5],[7] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 5,884 | [5],[7] | |||
Building & Improvements | 49,790 | [5],[7] | |||
Total | 55,674 | [5],[7] | |||
Accumulated Depreciation | 5,263 | [5],[7] | |||
115 Spring Street | |||||
Initial Cost | |||||
Land | 15,938 | [1] | |||
Building & Improvements | 37,309 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 15,938 | [1] | |||
Building & Improvements | 37,309 | [1] | |||
Total | 53,247 | [1] | |||
635 Madison Avenue | |||||
Initial Cost | |||||
Land | 153,745 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 153,745 | [1] | |||
Total | 153,745 | [1] | |||
125 Park Avenue | |||||
Initial Cost | |||||
Land | 120,900 | [1],[5] | |||
Building & Improvements | 189,714 | [1],[5] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 42,165 | [1],[5] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 120,900 | [1],[5] | |||
Building & Improvements | 231,879 | [1],[5] | |||
Total | 352,779 | [1],[5] | |||
Accumulated Depreciation | 34,869 | [1],[5] | |||
625 Madison Avenue | |||||
Initial Cost | |||||
Building & Improvements | 246,673 | [1],[5] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Building & Improvements | 35,576 | [1],[5] | |||
Gross Amount at Which Carried at Close of Period | |||||
Building & Improvements | 282,249 | [1],[5] | |||
Total | 282,249 | [1],[5] | |||
Accumulated Depreciation | 77,982 | [1],[5] | |||
102 Greene Street | |||||
Initial Cost | |||||
Land | 11,288 | [1] | |||
Building & Improvements | 20,963 | [1] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 11,288 | [1] | |||
Building & Improvements | 20,963 | [1] | |||
Total | 32,251 | [1] | |||
Accumulated Depreciation | 131 | [1] | |||
Other | |||||
Initial Cost | |||||
Land | 1,130 | [8] | |||
Cost Capitalized Subsequent To Acquisition | |||||
Land | 80 | [8] | |||
Building & Improvements | 4,693 | [8] | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | 1,210 | [8] | |||
Building & Improvements | 4,693 | [8] | |||
Total | $5,903 | [8] | |||
[1] | Property located in New York, New York. | ||||
[2] | We own a 51% interest in this property. | ||||
[3] | Property located in Westchester County, New York. | ||||
[4] | Property located in Connecticut. | ||||
[5] | Properties that were transferred in 2014. | ||||
[6] | Property located in Brooklyn, New York. | ||||
[7] | Property located in New Jersey. | ||||
[8] | Other includes tenant improvements, capitalized interest and corporate improvements. |
Schedule_III_Real_Estate_And_A2
Schedule III - Real Estate And Accumulated Depreciation (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Changes in real estate | |||
Balance at beginning of year | $6,556,482,000 | $6,178,574,000 | $5,691,459,000 |
Acquisitions | 208,608,000 | 479,236,000 | 429,330,000 |
Improvements | 93,986,000 | 107,385,000 | 59,428,000 |
Retirements/disposals | -57,881,000 | -208,713,000 | -1,643,000 |
Balance at end of year | 6,801,195,000 | 6,556,482,000 | 6,178,574,000 |
Aggregate cost of land, buildings and improvements, before depreciation, for Federal income tax purposes | 4,800,000,000 | ||
Changes in accumulated depreciation, exclusive of amounts relating to equipment, autos, and furniture and fixtures | |||
Balance at beginning of year | 953,093,000 | 821,463,000 | 675,783,000 |
Depreciation for year | 162,229,000 | 156,912,000 | 146,897,000 |
Retirements/disposals | -23,027,000 | -25,282,000 | -1,217,000 |
Balance at end of year | $1,092,295,000 | $953,093,000 | $821,463,000 |