Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 15, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | RECKSON OPERATING PARTNERSHIP LP | |
Entity Central Index Key | 930,810 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 0 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Commercial real estate properties, at cost: | ||
Land and land interests | $ 1,851,014 | $ 1,877,492 |
Building and improvements | 4,513,116 | 4,477,073 |
Building leasehold and improvements | 1,073,678 | 1,073,678 |
Commercial real estate properties, gross | 7,437,808 | 7,428,243 |
Less: accumulated depreciation | (1,347,204) | (1,267,598) |
Total commercial real estate properties, net | 6,090,604 | 6,160,645 |
Cash and cash equivalents | 73,143 | 50,026 |
Restricted cash | 41,029 | 39,433 |
Tenant and other receivables, net of allowance of $5,384 and $5,593 in 2016 and 2015, respectively | 31,905 | 35,256 |
Related party receivables | 90,000 | 90,000 |
Deferred rents receivable, net of allowance of $15,015 and $14,788 in 2016 and 2015, respectively | 227,914 | 217,730 |
Debt and preferred equity investments, net of discounts and deferred origination fees of $14,329 and $18,759 in 2016 and 2015, respectively | 1,357,181 | 1,670,020 |
Investments in unconsolidated joint ventures | 148,001 | 100,192 |
Deferred costs, net of accumulated amortization of $71,418 and $64,812 in 2016 and 2015, respectively | 118,189 | 114,449 |
Other assets | 414,822 | 355,566 |
Total assets | 8,592,788 | 8,833,317 |
Liabilities | ||
Mortgages and other loans payable, net | 627,346 | 745,728 |
Revolving credit facility, net | 277,420 | 985,055 |
Term loan and senior unsecured notes, net | 1,724,585 | 1,979,317 |
Accrued interest payable | 14,447 | 18,396 |
Other liabilities | 189,566 | 116,088 |
Accounts payable and accrued expenses | 59,576 | 70,844 |
Deferred revenue | 160,413 | 180,404 |
Deferred land leases payable | 1,730 | 1,558 |
Dividends payable | 807 | 807 |
Security deposits | 39,880 | 39,007 |
Total liabilities | 3,095,770 | 4,137,204 |
Commitments and contingencies | ||
Preferred units | 109,161 | 109,161 |
Capital | ||
General partner capital | 5,000,482 | 4,201,872 |
Limited partner capital | 0 | 0 |
Accumulated other comprehensive loss | (1,798) | (2,216) |
Total ROP partner's capital | 4,998,684 | 4,199,656 |
Noncontrolling interests in other partnerships | 389,173 | 387,296 |
Total capital | 5,387,857 | 4,586,952 |
Total liabilities and capital | $ 8,592,788 | $ 8,833,317 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Tenant and other receivables, allowance | $ 5,384 | $ 5,593 |
Deferred rents receivable, allowance | 15,015 | 14,788 |
Preferred equity investments, deferred origination fees and discounts | 14,329 | 18,759 |
Deferred costs, accumulated amortization | $ 71,418 | $ 64,812 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Rental revenue, net | $ 160,276 | $ 153,082 | $ 319,894 | $ 302,477 |
Escalation and reimbursement | 25,699 | 23,279 | 50,015 | 46,210 |
Investment income | 44,586 | 45,338 | 99,766 | 86,960 |
Other income | 1,197 | 12,932 | 1,747 | 13,652 |
Total revenues | 231,758 | 234,631 | 471,422 | 449,299 |
Expenses | ||||
Operating expenses, including related party expenses of $2,995 and $4,582 in 2016 and $2,093 and $3,925 in 2015 | 38,809 | 38,652 | 80,770 | 81,170 |
Real estate taxes | 37,302 | 35,180 | 74,526 | 69,704 |
Ground rent | 5,235 | 5,184 | 10,470 | 10,470 |
Interest expense, net of interest income | 26,443 | 27,656 | 58,644 | 55,724 |
Amortization of deferred financing costs | 1,732 | 1,303 | 3,872 | 3,256 |
Depreciation and amortization | 50,651 | 50,241 | 101,449 | 99,669 |
Transaction related costs | 67 | 18 | 245 | (45) |
Marketing, general and administrative | 265 | 161 | 449 | 264 |
Total expenses | 160,504 | 158,395 | 330,425 | 320,212 |
Income from continuing operations before equity in net income from unconsolidated joint ventures, loss on sale of real estate, and loss on early extinguishment of debt | 71,254 | 76,236 | 140,997 | 129,087 |
Equity in net income from unconsolidated joint ventures | 3,666 | 2,154 | 6,123 | 4,281 |
Loss on sale of real estate | (6,899) | 0 | (6,899) | 0 |
Loss on early extinguishment of debt | 0 | 0 | 0 | (49) |
Income from continuing operations | 68,021 | 78,390 | 140,221 | 133,319 |
Net income from discontinued operations | 0 | 0 | 0 | 0 |
Net income | 68,021 | 78,390 | 140,221 | 133,319 |
Net income attributable to noncontrolling interests in other partnerships | (2,062) | (6,378) | (2,074) | (6,928) |
Preferred units dividend | (955) | 0 | (1,910) | 0 |
Net income attributable to ROP common unitholder | $ 65,004 | $ 72,012 | $ 136,237 | $ 126,391 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Related party expenses included in operating expenses | $ 2,995 | $ 2,093 | $ 4,582 | $ 3,925 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income attributable to ROP common unitholder | $ 65,004 | $ 72,012 | $ 136,237 | $ 126,391 |
Other comprehensive income: | ||||
Change in net unrealized gain on derivative instruments | 198 | 220 | 418 | 404 |
Comprehensive income attributable to ROP common unitholder | $ 65,202 | $ 72,232 | $ 136,655 | $ 126,795 |
Consolidated Statement of Capit
Consolidated Statement of Capital (Unaudited) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Increase (Decrease) in Partners' Capital | |
Beginning Balance | $ 4,586,952 |
Contributions | 2,797,191 |
Distributions | (2,135,015) |
Net income | 138,311 |
Other comprehensive income (loss) | 418 |
Ending Balance | 5,387,857 |
General Partner's Capital Class A Common Units | Class A Common Units | |
Increase (Decrease) in Partners' Capital | |
Beginning Balance | 4,201,872 |
Contributions | 2,797,191 |
Distributions | (2,134,818) |
Net income | 136,237 |
Ending Balance | 5,000,482 |
Limited Partner's Capital | |
Increase (Decrease) in Partners' Capital | |
Beginning Balance | 0 |
Ending Balance | 0 |
Noncontrolling Interests In Other Partnerships | |
Increase (Decrease) in Partners' Capital | |
Beginning Balance | 387,296 |
Distributions | (197) |
Net income | 2,074 |
Ending Balance | 389,173 |
Accumulated Other Comprehensive (Loss) Income | |
Increase (Decrease) in Partners' Capital | |
Beginning Balance | (2,216) |
Other comprehensive income (loss) | 418 |
Ending Balance | $ (1,798) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Activities | ||
Net income | $ 140,221 | $ 133,319 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 105,321 | 102,925 |
Equity in net income from unconsolidated joint venture | (6,123) | (4,281) |
Distributions of cumulative earnings from unconsolidated joint ventures | 4,376 | 4,280 |
Loss on sale of real estate | 6,899 | 0 |
Loss on early extinguishment of debt | 0 | 49 |
Deferred rents receivable | (10,411) | (10,260) |
Other non-cash adjustments | (21,545) | (27,685) |
Changes in operating assets and liabilities: | ||
Restricted cash—operations | (8,721) | 702 |
Tenant and other receivables | 3,560 | (6,030) |
Deferred lease costs | (12,573) | (25,470) |
Other assets | (3,855) | (7,136) |
Accounts payable, accrued expenses and other liabilities | (4,196) | 1,357 |
Deferred revenue and land leases payable | (7,591) | (1,769) |
Net cash provided by operating activities | 185,362 | 160,001 |
Investing Activities | ||
Additions to land, buildings and improvements | (53,065) | (34,144) |
Escrowed cash—capital improvements | 368 | 388 |
Distributions From Unconsolidated Joint Ventures | (797) | 0 |
Distributions from unconsolidated joint ventures | 615 | 10 |
Net proceeds from disposition of real estate/joint venture interest | 42,316 | 0 |
Other investments | 4,974 | 357 |
Origination of debt and preferred equity investments | (227,482) | (387,216) |
Repayments or redemption of preferred equity investments | 418,371 | 109,784 |
Net cash provided by (used in) investing activities | 185,300 | (310,821) |
Financing Activities | ||
Proceeds from mortgages and other loans payable | 0 | 106,421 |
Repayments of mortgages and other loans payable | (119,165) | (220,000) |
Proceeds from credit facility and senior unsecured notes | 700,000 | 1,055,000 |
Repayments of credit facility and senior unsecured notes | (1,664,308) | (735,007) |
Distributions to noncontrolling interests in other partnerships | (197) | (558) |
Contributions from noncontrolling interests in other partnerships | 0 | 6,124 |
Contributions from common unitholder | 2,797,191 | 1,191,587 |
Distributions to common and preferred unitholders | (2,136,728) | (1,267,739) |
Other obligations related to loan participations | 76,500 | 25,000 |
Deferred loan costs and capitalized lease obligation | (838) | (4,533) |
Net cash (used in) provided by financing activities | (347,545) | 156,295 |
Net increase in cash and cash equivalents | 23,117 | 5,475 |
Cash and cash equivalents at beginning of period | 50,026 | 34,691 |
Cash and cash equivalents at end of period | 73,143 | 40,166 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Tenant improvements and capital expenditures payable | 8,973 | 5,845 |
Deferred leasing payable | 677 | 6,915 |
Change in fair value of hedge | 200 | 226 |
Transfer to assets held for sale | 0 | 138,421 |
Transfer to liabilities related to assets held for sale | 0 | 5,770 |
Exchange of debt investment for equity in joint venture | 68,581 | 0 |
Removal of fully depreciated commercial real estate properties | $ 8,281 | $ 0 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
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 Wyoming Acquisition GP LLC., or WAGP, 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 95.70% owned by SL Green Realty Corp., or SL Green, as of June 30, 2016 . 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. In 2015, SL Green transferred two properties and SL Green's tenancy in common interest in a fee interest with a total value of $395.0 million to ROP. Additionally, in 2015, SL Green transferred one entity that held debt investments and financing receivables with an aggregate carrying value of $1.7 billion to ROP. These transfers were made to further diversify ROP's portfolio. Under the business combinations guidance (Accounting Standard Codification, or ASC, 805-50), these transfers were determined to be transfers of businesses between the indirect parent company and its wholly-owned subsidiary. As such, the assets and liabilities of the properties were transferred at their carrying values and were recorded as of the beginning of the current reporting period as though the assets and liabilities had been transferred at that date. The financial statements and financial information presented for all prior periods have been retrospectively adjusted to furnish comparative information. As of June 30, 2016 , we owned the following interests in properties in the New York Metropolitan area, primarily in midtown Manhattan. 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 (1) (unaudited) Commercial: Manhattan Office 16 8,463,245 95.6 % Retail (2)(3) 5 352,892 97.6 % Fee Interest 2 197,654 100.0 % 23 9,013,791 95.8 % Suburban Office 19 3,287,800 81.6 % Retail 1 52,000 100.0 % 20 3,339,800 81.9 % Total commercial properties 43 12,353,591 92.0 % Residential: Manhattan Residential (2) — 222,855 92.8 % Total portfolio 43 12,576,446 92.0 % (1) The weighted average occupancy for commercial properties represents the total leased square feet divided by total acquisition square footage. The weighted average occupancy for residential properties represents the total occupied units divided by total available units. (2) As of June 30, 2016 , we owned a building that was comprised of approximately 270,132 square feet of retail space and approximately 222,855 square feet of residential space. For the purpose of this report, we have included the building in the retail properties count and have bifurcated the square footage into the retail and residential components. (3) Includes two unconsolidated joint venture retail properties at 131-137 Spring Street comprised of approximately 68,342 square feet. As of June 30, 2016, we held debt and preferred equity investments with a book value of $1.7 billion , including $0.3 billion of debt and preferred equity investments and other financing receivables that are included in other balance sheet line items. Basis of Quarterly Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principals generally accepted in the Unites States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the financial position of the Company at June 30, 2016 and the results of operations for the periods presented have been included. The operating results for the period presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . These financial statements should be read in conjunction with the financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2015 . The consolidated balance sheet at December 31, 2015 have been derived from the audited financial statements as of that date but do not include all the information and footnotes required by accounting principals generally accepted in the Unites States for complete financial statements. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
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. See Note 5, "Debt and Preferred Equity 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. Included in commercial real estate properties on our consolidated balance sheets as of June 30, 2016 and December 31, 2015 are $1.4 billion and $0.3 billion , respectively, related to our consolidated VIEs. Included in mortgages and other loans payable on our consolidated balance sheets as of June 30, 2016 and December 31, 2015 are $493.6 million and none , respectively, collateralized by the real estate assets of the related consolidated VIEs. 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 is modified to present earnings and other comprehensive income attributed to controlling and noncontrolling interests. We assess the accounting treatment for each joint venture and debt 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 requiring partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan. Investment in Commercial Real Estate Properties On a periodic basis, we assess whether there are any indications that the value of our real estate properties may be other than temporarily 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) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property. We also evaluate our real estate properties for potential impairment when a real estate property has been classified as held for sale. Real estate assets held for sale are valued at the lower of either their carrying value or fair value less costs to sell. We do not believe that there were any indicators of impairment at any of our consolidated properties at June 30, 2016 . 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. We recognized an increase of $3.8 million , $7.8 million , $6.9 million , and $12.6 million in rental revenue for the three and six months ended June 30, 2016 and 2015, 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 following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Identified intangible assets (included in other assets): Gross amount $ 306,575 $ 307,824 Accumulated amortization (244,350 ) (235,040 ) Net $ 62,225 $ 72,784 Identified intangible liabilities (included in deferred revenue): Gross amount $ 517,657 $ 523,228 Accumulated amortization (359,258 ) (346,857 ) Net $ 158,399 $ 176,371 Fair Value Measurements See Note 12, "Fair Value Measurements." Investments in Unconsolidated Joint Ventures We assess our investments in unconsolidated joint ventures 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 investments for impairment based on the joint ventures' projected discounted cash flows. We do not believe that the values of any of our equity investments were impaired at June 30, 2016 . 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. 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 debt and preferred equity investments is accrued based on the 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 an adjustment 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 debt or 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 debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount. For debt 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. Debt and 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 debt or preferred equity investment is resumed when such non-accrual debt or 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 for 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, original issue discounts, 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 operations. Any fees received at the time of sale or syndication are recognized as part of investment income. Reserve for Possible Credit Losses The expense for possible credit losses in connection with debt and 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, product diversification, the size of the portfolio and current economic conditions. Based upon these factors, we establish a 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 loan reserves recorded during the three and six months ended June 30, 2016 and 2015. Debt and 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 debt and 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. 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. Shares Contributed by Parent Company We present shares of SL Green common stock as a contra equity account in our financial statements. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, debt and 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 debt and preferred equity investments is located in New York City. See Note 5, "Debt and Preferred Equity 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. No tenant in the portfolio accounted for more than 5.0% of our share of annualized cash rent, including our share of joint venture annualized cash rent, at June 30, 2016 . For the three months ended June 30, 2016 , 14.9% , 9.6% , 8.2% , 7.7% , 7.4% , 7.0% , 6.7% and 6.6% of our share of annualized cash rent was attributable to 1185 Avenue of the Americas, 625 Madison Avenue, 919 Third Avenue, 750 Third Avenue, 810 Seventh Avenue, 1350 Avenue of the Americas, 125 Park Avenue and 555 West 57 th Street, respectively. Annualized cash rent for all other consolidated properties was below 5.0%. Reclassification Certain prior year balances have been reclassified to conform to our current year presentation. Accounting Standards Updates In June 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The guidance replaces the current ‘incurred loss’ model with an ‘expected loss’ approach. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted after December 2018. The Company has not yet adopted this new guidance and is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update (ASU) 2016-07, Investments Equity Method and Joint Ventures (Topic 323). The guidance eliminates the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The guidance is effective for all entities for fiscal years beginning after 15 December 2016 and interim periods within those years. Early adoption is permitted in any interim or annual period. The Company has not yet adopted this new guidance and is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. The guidance requires lessees to recognize lease assets and lease liabilities for those leases classified as operating leases under the previous standard. The accounting applied by a lessor is largely unchanged from that applied under the previous standard. The Guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company has not yet adopted this new guidance and is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01 (ASU825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and to record changes in instruments-specific credit risk for financial liabilities measured under the fair value option in other comprehensive income. The guidance is effective for fiscal years beginning after December 15, 2017, and for interim periods therein. The Company has not yet adopted this new guidance and is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In April 2015, the FASB issued final guidance to simplify the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability (ASU 2015-03). The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The Company adopted the guidance effective January 1, 2016. Accordingly, as of June 30, 2016 and December 31, 2015, $22.8 million and $25.4 million , respectively of deferred debt issuance costs, net of amortization are presented as a direct reduction within Mortgages and other loans payable, Revolving credit facility, Term loan and senior unsecured notes on the Company's consolidated balance sheets. In February 2015, the FASB issued guidance that amends the current consolidation guidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities (ASU 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 Company adopted the guidance effective January 1, 2016. Under the revised guidance, certain entities, now qualify as variable interest entities. The change in designation did not have a material impact on our consolidated financial statements and did not change the consolidation conclusion on these entities. 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 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. In March 2016, the FASB issued implementation guidance which clarifies principal versus agent considerations in reporting revenue gross versus net (ASU 2016-08). In April 2016, the FASB issued implementation guidance which clarifies the identification of performance obligations (ASU 2016-10). In April 2016, the FASB amended its new revenue recognition guidance on identifying performance obligations to allow entities to disregard items that are immaterial and clarify when a good or service is separately identifiable (ASU 2016-10). In May 2016, the FASB issued implementation guidance relating to transition, collectability, noncash consideration and presentation matters (ASU 2016-12). These ASUs are effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. 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 has not yet adopted this guidance and is currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements. |
Property Acquisition
Property Acquisition | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Property Acquisition | Property Acquisition We did not acquire any properties during the three or six months ended June 30, 2016. |
Property Disposition
Property Disposition | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Property Disposition | Property Disposition Property Dispositions The following table summarizes the properties sold during the six months ended June 30, 2016: Property Disposition Date Property Type Approximate Square Feet Sales Price (1) (in millions) Loss on Sale (in millions) 7 International Drive May 2016 Land 31 Acres 20.0 (6.9 ) (1) Sales price represents the gross sales price for a property or the gross asset valuation for interests in a property. |
Debt and Preferred Equity Inves
Debt and Preferred Equity Investments | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt, Preferred Equity and Other Investments | Debt and Preferred Equity Investments During the six months ended June 30, 2016 and 2015, our debt and preferred equity investments, net of discounts and deferred origination fees, increased $255.0 million and $386.2 million , respectively, due to originations, purchases, advances under future funding obligations, discount and fee amortization, and paid-in-kind interest, net of premium amortization. We recorded repayments, participations and sales of $567.9 million and $109.8 million during the six months ended June 30, 2016 and 2015, respectively, which offset the increases in debt and preferred equity investments. Certain debt investments that were participated out but did not meet the conditions for sale accounting are included in other assets and other liabilities on the consolidated balance sheets. Debt Investments As of June 30, 2016 and December 31, 2015 , we held the following debt investments, with an aggregate weighted average current yield of 9.55% at June 30, 2016 (in thousands): Loan Type June 30, 2016 June 30, 2016 June 30, 2016 (1) December 31, 2015 (1) Maturity (2) Fixed Rate Investments: Mezzanine Loan $ — $ 165,000 $ 72,271 $ 72,102 October 2016 Jr. Mortgage Participation/Mezzanine Loan — 1,109,000 189,380 104,661 March 2017 Mezzanine Loan (3a) 10,000 502,100 55,988 41,115 June 2017 Mortgage Loan (4) — — 26,284 26,262 February 2019 Mortgage Loan — — 447 513 August 2019 Mezzanine Loan — 15,000 3,500 3,500 September 2021 Mezzanine Loan (3b) — 89,527 19,939 19,936 November 2023 Mezzanine Loan (3c) — 115,000 12,921 24,916 June 2024 Mezzanine Loan — 95,000 30,000 30,000 January 2025 Mezzanine Loan (5) — — — 49,691 Loan Type June 30, 2016 June 30, 2016 June 30, 2016 (1) December 31, 2015 (1) Maturity (2) Jr. Mortgage Participation (6) — — — 49,000 Other (6)(7) — — — 23,510 Other (6)(7) — — — 66,183 Total fixed rate $ 10,000 $ 2,090,627 $ 410,730 $ 511,389 Floating Rate Investments: Mortgage/Mezzanine Loan (8) — — 105,278 94,901 October 2016 Mezzanine Loan — 360,000 99,811 99,530 November 2016 Mezzanine Loan 8,459 136,384 52,827 49,751 December 2016 Mezzanine Loan 281 39,201 13,761 13,731 December 2016 Mortgage/Mezzanine Loan (3d) 43,572 — 137,150 134,264 January 2017 Mezzanine Loan 1,127 118,949 28,796 28,551 January 2017 Mezzanine Loan (3e)(9) — 40,000 15,212 68,977 June 2017 Mortgage/Mezzanine Loan — — 32,679 — June 2017 Mortgage/Mezzanine Loan — — 22,919 22,877 July 2017 Mortgage/Mezzanine Loan — — 16,931 16,901 September 2017 Mortgage/Mezzanine Loan 4,234 — 19,607 19,282 October 2017 Mezzanine Loan — 60,000 14,931 14,904 November 2017 Mezzanine Loan (3f) — 85,000 15,011 29,505 December 2017 Mezzanine Loan (3g) — 65,000 14,542 28,563 December 2017 Mortgage/Mezzanine Loan (3h) 795 — 14,998 14,942 December 2017 Jr. Mortgage Participation — 40,000 19,880 19,846 April 2018 Mezzanine Loan — 175,000 34,785 34,725 April 2018 Jr. Mortgage Participation/Mezzanine Loan (3i) — 55,000 10,512 20,510 July 2018 Mortgage/Mezzanine Loan (10) 523 20,523 10,829 31,210 August 2018 Mezzanine Loan 2,325 45,025 34,318 — October 2018 Mezzanine Loan — 33,000 26,812 26,777 December 2018 Mezzanine Loan 4,560 156,383 54,731 52,774 December 2018 Mezzanine Loan 23,456 217,202 55,217 49,625 December 2018 Mezzanine Loan 6,383 16,383 5,363 — January 2019 Mezzanine Loan — 38,000 21,869 21,845 March 2019 Mezzanine Loan — 265,000 24,646 — April 2019 Mezzanine Loan (11) — — — 22,625 Mezzanine Loan (12) — — — 74,700 Mezzanine Loan (13) — — — 66,398 Jr. Mortgage Participation/Mezzanine Loan (6) — — — 18,395 Mezzanine Loan (14) — — — 40,346 Total floating rate $ 95,715 $ 1,966,050 $ 903,415 $ 1,116,455 Total $ 105,715 $ 4,056,677 $ 1,314,145 $ 1,627,844 (1) Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees. (2) Represents contractual maturity, excluding any unexercised extension options. (3) Carrying value is net of the following amount that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting: (a) $41.3 million , (b) $5.0 million , (c) $12.0 million , (d) $36.3 million , (e) $14.5 million , (f) $14.6 million , (g) $14.1 million , (h) $5.1 million and (i) $10.0 million . (4) In September 2014, we acquired a $26.4 million mortgage loan at a $0.2 million discount and a $5.7 million junior mortgage participation at a $5.7 million discount. The junior mortgage participation was a nonperforming loan at acquisition and is currently on non-accrual status. (5) In April 2016, we closed on an option to acquire a 20% interest in the underlying asset at a previously agreed upon purchase option valuation, and our mezzanine loan was simultaneously repaid. (6) These loans were repaid in March 2016. (7) These loans were collateralized by defeasance securities. (8) In April 2016, the maturity date was extended to October 2016. (9) In March 2016, the mortgage was sold. (10) In January 2016, the loans were modified. In March 2016, the mortgage was sold. (11) This loan was repaid in June 2016. (12) This loan was repaid in May 2016. (13) In March 2016, we contributed our interest in the loan in exchange for a joint venture interest which is now accounted for under the equity method of accounting. It is included in unconsolidated joint ventures on the consolidated balance sheets. (14) These loans were repaid in February 2016. Preferred Equity Investments As of June 30, 2016 and December 31, 2015, we held the following preferred equity investments with an aggregate weighted average current yield of 7.97% at June 30, 2016 (in thousands): Type June 30, 2016 June 30, 2016 June 30, 2016 December 31, 2015 Initial Preferred equity $ — $ 71,486 $ 9,974 $ 9,967 March 2018 Preferred equity 4,779 59,966 33,062 32,209 November 2018 $ 4,779 $ 131,452 $ 43,036 $ 42,176 (1) Carrying value is net of deferred origination fees. At June 30, 2016 and December 31, 2015, all debt and preferred equity investments were performing in accordance with the terms of the relevant investments, with the exception of a junior mortgage participation acquired in September 2014, which has a carrying value of zero . We have determined that we have one portfolio segment of financing receivables at June 30, 2016 and 2015 comprising commercial real estate which is primarily recorded in debt and preferred equity investments. Included in other assets is an additional amount of financing receivables totaling $168.6 million and $168.3 million at June 30, 2016 and December 31, 2015, respectively. No financing receivables were 90 days past due at June 30, 2016. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures We have investments in several real estate joint ventures with various partners. As of June 30, 2016 none of our investments in unconsolidated joint ventures are VIEs. The table below provides general information on each of our joint ventures as of June 30, 2016 : Property Partner Ownership Interest Economic Interest Approximate Square Feet Acquisition Date Acquisition Price (1) (in thousands) 131-137 Spring Street Invesco Real Estate 20.00% 20.00% 68,342 August 2015 $ 277,750 76 11th Avenue (2) Oxford/Vornado 33.33% 36.58% 764,000 March 2016 138,240 (1) Acquisition price represents the actual or implied gross purchase price for the joint venture, which is not adjusted for subsequent acquisitions of additional interests. (2) The joint venture owns two mezzanine notes secured by interests in the entity that owns 76 11th Avenue. The difference between our ownership interest and our economic interest results from our right to 50% of the total exit fee while each of our partners is entitled to receive 25% of the total exit fee. Acquisition, Development and Construction Arrangement Based on the characteristics of the following arrangements, which are similar to those of an investment, combined with the expected residual profit of not greater than 50% , we have accounted for these debt and preferred equity investments under the equity method. As of June 30, 2016 and December 31, 2015 , the carrying value for acquisition, development and construction arrangements were as follows (in thousands): Loan Type June 30, 2016 December 31, 2015 Maturity Date Mezzanine loan and preferred equity $ 100,000 $ 99,936 March 2017 $ 100,000 $ 99,936 Sale of Joint Venture Interest or Property We did not sell any joint venture interest or property during the six months ended June 30, 2016 . Mortgages and Other Loans Payable We generally finance our joint ventures with non-recourse debt. However, in certain cases we have provided guarantees or master leases for tenant space. These guarantees and master leases terminate upon the satisfaction of specified circumstances or repayment of the underlying loans. The first mortgage notes and other loans payable collateralized by the respective joint venture properties and assignment of leases at June 30, 2016 and December 31, 2015 , respectively, are as follows (amounts in thousands): Property Maturity Date Interest Rate (1) June 30, 2016 December 31, 2015 Floating Rate Debt: 131-137 Spring Street August 2020 1.99 % $ 141,000 $ 141,000 Total joint venture mortgages and other loans payable $ 141,000 $ 141,000 Deferred financing costs, net (4,524 ) (5,077 ) Total joint venture mortgages and other loans payable, net $ 136,476 $ 135,923 (1) Effective weighted average interest rate for the three months ended June 30, 2016 , taking into account interest rate hedges in effect during the period. The combined balance sheets for the unconsolidated joint ventures, at June 30, 2016 and December 31, 2015 are as follows (in thousands): June 30, 2016 December 31, 2015 Assets Commercial real estate property, net $ 282,520 $ 285,689 Debt and preferred equity investments, net 243,177 99,936 Other assets 18,891 16,897 Total assets $ 544,588 $ 402,522 Liabilities and members' equity Mortgages and other loans payable, net $ 136,476 $ 135,923 Other liabilities 23,685 25,462 Members' equity 384,427 241,137 Total liabilities and members' equity $ 544,588 $ 402,522 Company's investments in unconsolidated joint ventures $ 148,001 $ 100,192 The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the three and six months ended June 30, 2016 and 2015 , are as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Total revenues $ 16,946 $ 2,159 $ 23,883 $ 4,292 Operating expenses 804 5 1,178 5 Real estate taxes 565 — 848 — Interest expense, net of interest income 1,409 — 2,107 — Amortization of deferred financing costs 554 — 831 — Transaction related costs — — — 6 Depreciation and amortization 4,202 — 6,303 Total expenses $ 7,534 $ 5 $ 11,267 $ 11 Net income $ 9,412 $ 2,154 $ 12,616 $ 4,281 Company's equity in net income from unconsolidated joint ventures 3,666 2,154 6,123 4,281 |
Mortgages and Other Loans Payab
Mortgages and Other Loans Payable | 6 Months Ended |
Jun. 30, 2016 | |
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 respective properties and assignment of leases or debt investments at June 30, 2016 and December 31, 2015 , respectively, were as follows (amounts in thousands): Property Maturity Date Interest Rate (1) June 30, 2016 December 31, 2015 Fixed Rate Debt: 919 Third Avenue (2) June 2023 5.12 % $ 500,000 $ 500,000 Floating Rate Debt: Master Repurchase Agreement July 2016 3.59 % 134,259 253,424 Total mortgages and other loans payable $ 634,259 $ 753,424 Deferred financing costs, net of amortization (6,913 ) (7,696 ) Total mortgages and other loans payable, net $ 627,346 $ 745,728 (1) Effective weighted average interest rate for the three months ended June 30, 2016 . (2) We own a 51.0% controlling interest in the joint venture that is the borrower on this loan. Master Repurchase Agreement The Master Repurchase Agreement, as amended in December 2013, or MRA, provides us with the ability to sell certain debt investments with a simultaneous agreement to repurchase the same at a certain date or on demand. This MRA has a maximum facility capacity of $300.0 million and bears interest ranging from 250 and 325 basis points over 30-day LIBOR depending on the pledged collateral. Since December 6, 2015, we have been required to pay monthly in arrears a 25 basis point fee on the excess of $150.0 million over the average daily balance during the period if the average daily balance is less than $150.0 million . We seek to mitigate risks associated with our repurchase agreement by managing the credit quality of our assets, early repayments, interest rate volatility, liquidity, and market value. The margin call provisions under our repurchase facility permit valuation adjustments based on capital markets activity, and are not limited to collateral-specific credit marks. To monitor credit risk associated with our debt investments, our asset management team regularly reviews our investment portfolio and is in contact with our borrowers in order to monitor the collateral and enforce our rights as necessary. The risk associated with potential margin calls is further mitigated by our ability to recollateralize the facility with additional assets from our portfolio of debt investments, our ability to satisfy margin calls with cash or cash equivalents and access to additional liquidity through the 2012 credit facility, as defined below. At June 30, 2016 and December 31, 2015 , the gross book value of the properties and debt and preferred equity investments collateralizing the mortgages and other loans payable, not including assets held for sale, was approximately $1.8 billion and $2.0 billion , respectively. In July 2016, we entered into a new Master Repurchase Agreement, with a maximum facility capacity of $300.0 million that bears interest ranging from 225 and 400 basis points over 30-day LIBOR depending on the pledged collateral. The new MRA has an initial maturity date of July 2018, with an extension term of one additional year. |
Corporate Indebtedness
Corporate Indebtedness | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Corporate Indebtedness | Corporate Indebtedness 2012 Credit Facility In July 2015, we entered into the third amendment to the credit facility that was originally entered into by the Company in November 2012, referred to as the 2012 credit facility. As of June 30, 2016 , the 2012 credit facility, as amended, consisted of a $1.6 billion revolving credit facility and a $933.0 million term loan, with a maturity date of March 29, 2019 and June 30, 2019, respectively. The revolving credit facility has an as-of-right extension to March 29, 2020. We also have an option, subject to customary conditions, to increase the capacity under the revolving credit facility to $3.0 billion at any time prior to the maturity date for the revolving credit facility without the consent of existing lenders, by obtaining additional commitments from our existing lenders and other financial institutions. As of June 30, 2016 , the 2012 credit facility bore interest at a spread over LIBOR ranging from (i) 87.5 basis points to 155 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 June 30, 2016 , the applicable spread was 125 basis points for the revolving credit facility and 140 basis points for the term loan facility. At June 30, 2016, the effective interest rate was 1.69% for the revolving credit facility and 1.85% for the term loan facility. We are required to pay quarterly in arrears a 12.5 to 30 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 June 30, 2016 , the facility fee was 25 basis points. As of June 30, 2016 , we had $73.6 million of outstanding letters of credit, $285.0 million drawn under the revolving credit facility and $933.0 million outstanding under the term loan facility, with total undrawn capacity of $1.2 billion under the 2012 credit facility. At June 30, 2016 and December 31, 2015 , the revolving credit facility had a carrying value of $277.4 million and $985.1 million , respectively, net of deferred financing costs. At June 30, 2016 and December 31, 2015 , the term loan facility had a carrying value of $930.0 million and $929.5 million , respectively, net of deferred financing costs. 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 obligors under the 2012 credit facility. The 2012 credit facility includes certain restrictions and covenants (see Restrictive Covenants below). Senior Unsecured Notes The following table sets forth our senior unsecured notes and other related disclosures as of June 30, 2016 and December 31, 2015, respectively, by scheduled maturity date (dollars in thousands): Issuance June 30, June 30, December 31, 2015 Accreted Balance Coupon (1) Effective Term Maturity Date August 5, 2011 (2) $ 250,000 $ 249,845 $ 249,810 5.00 % 5.00 % 7 August 2018 March 16, 2010 (2) 250,000 250,000 250,000 7.75 % 7.75 % 10 March 2020 November 15, 2012 (2) 200,000 200,000 200,000 4.50 % 4.50 % 10 December 2022 December 17, 2015 (2) 100,000 100,000 100,000 4.27 % 4.27 % 10 December 2025 March 31, 2006 (3) — — 255,296 $ 800,000 $ 799,845 $ 1,055,106 Deferred financing costs, net (5,260 ) (5,303 ) $ 794,585 $ 1,049,803 (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) This note was repaid in March 2016. 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 June 30, 2016 and 2015, we were in compliance with all such covenants. Principal Maturities Combined aggregate principal maturities of our mortgages and other loans payable, 2012 credit facility and senior unsecured notes as of June 30, 2016 , including as-of-right extension options and put options, were as follows (in thousands): Scheduled Principal Revolving Unsecured Term Loan Senior Unsecured Notes Total Remaining 2016 $ 3,566 $ 134,259 $ — $ — $ — 137,825 2017 7,411 — — — — 7,411 2018 7,799 — — — 250,000 257,799 2019 8,207 — — 933,000 — 941,207 2020 8,637 — 285,000 — 250,000 543,637 Thereafter 22,786 441,594 — — 300,000 764,380 $ 58,406 $ 575,853 $ 285,000 $ 933,000 $ 800,000 $ 2,652,259 Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Interest expense $ 26,773 $ 27,982 $ 59,087 $ 56,843 Interest capitalized (328 ) (321 ) (437 ) (1,107 ) Interest income (2 ) (5 ) (6 ) (12 ) Interest expense, net $ 26,443 $ 27,656 $ 58,644 $ 55,724 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Cleaning/ Security/ Messenger and Restoration Services Alliance Building Services, or Alliance, and its affiliates are partially owned by Gary Green, a son of Stephen L. Green, the chairman of SL Green's board of directors, and provide services to certain properties owned by us. Alliance’s affiliates include First Quality Maintenance, L.P., or First Quality, Classic Security LLC, Bright Star Couriers LLC and Onyx Restoration Works, and provide cleaning, extermination, security, messenger, and restoration services, respectively. 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 operations, was $0.8 million and $1.7 million for both the three and six months ended June 30, 2016 and 2015. We also recorded expenses, inclusive of capitalized expenses, of $3.1 million , $4.8 million , $2.1 million and $4.0 million for the three and six months ended June 30, 2016 and 2015, 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 $2.8 million , $5.4 million , $2.5 million and $4.9 million for the three and six months ended June 30, 2016 and 2015, 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 $1.4 million , $3.0 million , $1.7 million and $3.3 million for the three and six months ended June 30, 2016 and 2015. |
Preferred Units
Preferred Units | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Preferred Units | Preferred Units Through a consolidated subsidiary, we have authorized up to 109,161 3.5% Series A Preferred Units of limited partnership interest, or the Greene Series A Preferred Units, with a liquidation preference of $1,000.00 per unit. In August 2015, the Company issued 109,161 Greene Series A Preferred Units in conjunction with an acquisition. The Greene Series A Preferred unitholders receive annual dividends of $35.00 per unit paid on a quarterly basis and dividends are cumulative, subject to certain provisions. The Greene Series A Preferred Units can be redeemed at any time, at the option of the unitholder, either for cash or are convertible on a one-for-one basis, into the Series B Preferred Units of limited partnership interest, or the Greene Series B Preferred Units. The Greene Series B Preferred Units can be converted at any time, at the option of the unitholder, into a number of common stock equal to 6.71348 shares of SL Green common stock for each Greene Series B Preferred Unit. As of June 30, 2016 , no Greene Series B Preferred Units have been issued. ASC 815 Derivatives and Hedging requires bifurcation of certain embedded derivative instruments, such as conversion features in convertible equity instruments, and their measurement at fair value for accounting purposes. The conversion feature embedded in the Greene Series A Preferred Units was evaluated, and it was determined that the conversion feature should be bifurcated from its host instrument and accounted for as a freestanding derivative. The derivative is reported as a derivative liability in accrued interest and other liabilities on the accompanying consolidated balance sheet and is adjusted to its fair value at each reporting date, with a corresponding adjustment to interest expense, net of interest income. The embedded derivative for the Greene Series A Preferred Units was initially recorded at a fair value of zero on July 22, 2015, the date of issuance. At December 31, 2015, the carrying amount of the derivative was adjusted to its fair value of zero , with a corresponding adjustment to preferred units and interest expense, net of interest income. At June 30, 2016 the carrying amount and fair value of the derivative remained at zero . |
Partners' Capital
Partners' Capital | 6 Months Ended |
Jun. 30, 2016 | |
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 | 6 Months Ended |
Jun. 30, 2016 | |
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 consists of three broad levels: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date; Level 2 - inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 - unobservable inputs for the asset or liability that are used when little or no market data is available. We follow this hierarchy for our assets and liabilities measured at fair value on a recurring and nonrecurring basis. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety. 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. We determine other than temporary impairment in real estate investments and debt and preferred equity investments, including intangibles, utilizing cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, which are classified as Level 3 inputs. 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, debt and preferred equity investments, mortgages and other loans payable and other secured and unsecured debt. The carrying amount of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses reported in our consolidated balance sheets approximates fair value due to the short term nature of these instruments. The fair value of debt and 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 June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Debt and preferred equity investments $ 1,357,181 (1) $ 1,670,020 (1) Fixed rate debt $ 1,799,844 $ 1,940,517 $ 1,585,106 $ 1,663,078 Variable rate debt 852,259 855,754 2,150,424 2,164,673 $ 2,652,103 $ 2,796,271 $ 3,735,530 $ 3,827,751 (1) At June 30, 2016 , debt and preferred equity investments had an estimated fair value ranging between $1.4 billion and $1.5 billion . At December 31, 2015, debt and preferred equity investments had an estimated fair value ranging between $1.7 billion and $1.8 billion . Disclosure about fair value of financial instruments was based on pertinent information available to us as of June 30, 2016 and December 31, 2015 . 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 | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 , the Company had not designated any interest rate swap agreements on any debt investment. 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 June 30, 2016 and December 31, 2015 , 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 $1.8 million and $2.0 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 $0.4 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 operations for the three months ended June 30, 2016 and 2015 , respectively (in thousands): Amount of Loss Recognized in Other Comprehensive Loss (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income Amount of Gain Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain Recognized in Income on Derivative Amount of Gain Recognized into Income (Ineffective Portion) Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Derivative 2016 2015 2016 2015 2016 2015 (as adjusted) (as adjusted) (as adjusted) Interest Rate Swap $ (1 ) $ (27 ) Interest expense $ 199 $ 250 Interest expense $ 1 $ 1 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 operations for the six months ended June 30, 2016 and 2015 , respectively (in thousands): Amount of Loss Recognized in Other Comprehensive Loss (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income Amount of Gain Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain Recognized in Income on Derivative Amount of Gain Recognized into Income (Ineffective Portion) Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Derivative 2016 2015 2016 2015 2016 2015 (as adjusted) (as adjusted) (as adjusted) Interest Rate Swap $ (13 ) $ (95 ) Interest expense $ 431 $ 499 Interest expense $ 3 $ 2 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings As of June 30, 2016 , we were not involved in any material litigation nor, to management's knowledge, was any material litigation threatened against us or our portfolio which if adversely determined could have a material adverse impact on us. Guarantees During the year ended December 31, 2015, Belmont Insurance Company, or Belmont, a New York licensed captive insurance company and an affiliate of SL Green, became a member of the Federal Home Loan Bank of New York, or FHLBNY. As a member Belmont may borrow funds from the FHLBNY in the form of secured advances. Belmont’s membership will terminate in February 2017 at which point Belmont will be required to repay all funds borrowed. As of June 30, 2016 certain commercial real estate properties and debt and preferred equity investments of the Company were pledged as collateral to secure advances under the FHLBNY facility. If Belmont or SL Green are unable to repay the advances upon the termination of Belmont’s membership, the maximum potential amount of future payments the Company could be required to make under the secured advances is $229.0 million . The Company incurred approximately $4.6 million of costs in conjunction with pledging assets as collateral under the FHLBNY. These costs were reimbursed to the Company by Belmont. Environmental Matters The Company believes that its properties are in compliance in all material respects with applicable Federal, state and local ordinances and regulations regarding environmental issues. Management is not aware of any environmental liability that it believes would have a materially adverse impact on our financial position, results of operations or cash flows. Management is unaware of any instances in which it would incur significant environmental cost if any of our properties were sold. Ground Leases Arrangements The following is a schedule of future minimum lease payments under non-cancellable operating leases with initial terms in excess of one year as of June 30, 2016 (in thousands): Non-cancellable operating leases Remaining 2016 $ 10,272 2017 20,586 2018 20,586 2019 20,586 2020 20,586 Thereafter 328,088 Total minimum lease payments $ 420,704 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are engaged in all aspects of property ownership and management including investment, leasing, operations, capital improvements, development, redevelopment, financing, construction and maintenance in the New York Metropolitan area and have two reportable segments, real estate and debt 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, "Debt and Preferred Equity Investments," for additional details on our debt and preferred equity investments. Selected results of operations for the three and six months ended June 30, 2016 and 2015, and selected asset information as of June 30, 2016 and December 31, 2015, regarding our operating segments are as follows (in thousands): Real Estate Segment Debt and Preferred Equity Segment Total Company Total revenues: Three months ended: June 30, 2016 $ 183,596 $ 48,162 $ 231,758 June 30, 2015, as adjusted 187,140 47,491 234,631 Six months ended: June 30, 2016 $ 365,728 $ 105,694 $ 471,422 June 30, 2015, as adjusted $ 358,059 $ 91,240 $ 449,299 Income from continuing operations before loss on sale of real estate: Three months ended: June 30, 2016 $ 69,654 $ 5,266 $ 74,920 June 30, 2015, as adjusted $ 78,199 $ 191 $ 78,390 Six months ended: June 30, 2016 $ 132,791 $ 14,329 $ 147,120 June 30, 2015, as adjusted $ 124,587 $ 8,732 $ 133,319 Real Estate Segment Debt and Preferred Equity Segment Total Company Total assets As of: June 30, 2016 $ 6,677,267 $ 1,915,521 $ 8,592,788 December 31, 2015 $ 6,892,079 $ 1,941,238 $ 8,833,317 Income from continuing operations represents total revenues less total expenses for the real estate segment and total investment income less allocated interest expense for the debt and preferred equity segment. Interest costs for the debt and preferred equity segment includes actual costs incurred for investments collateralizing the MRA. Interest is imputed on the remaining investments using our 2012 revolving credit facility and corporate borrowing cost. We also allocate loan loss reserves, net of recoveries and transaction related costs to the debt and preferred equity segment. We do not allocate marketing, general and administrative expenses (totaling $0.3 million , $0.4 million , $0.2 million , and $0.3 million , for the three and six months ended June 30, 2016 and 2015, respectively) to the debt and 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. |
Significant Accounting Polici24
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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. See Note 5, "Debt and Preferred Equity 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. Included in commercial real estate properties on our consolidated balance sheets as of June 30, 2016 and December 31, 2015 are $1.4 billion and $0.3 billion , respectively, related to our consolidated VIEs. Included in mortgages and other loans payable on our consolidated balance sheets as of June 30, 2016 and December 31, 2015 are $493.6 million and none , respectively, collateralized by the real estate assets of the related consolidated VIEs. 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 is modified to present earnings and other comprehensive income attributed to controlling and noncontrolling interests. We assess the accounting treatment for each joint venture and debt 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 requiring partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan. |
Investment in Commercial Real Estate Properties | Investment in Commercial Real Estate Properties On a periodic basis, we assess whether there are any indications that the value of our real estate properties may be other than temporarily 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) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property. We also evaluate our real estate properties for potential impairment when a real estate property has been classified as held for sale. Real estate assets held for sale are valued at the lower of either their carrying value or fair value less costs to sell. We do not believe that there were any indicators of impairment at any of our consolidated properties at June 30, 2016 . 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. |
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 consists of three broad levels: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date; Level 2 - inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 - unobservable inputs for the asset or liability that are used when little or no market data is available. We follow this hierarchy for our assets and liabilities measured at fair value on a recurring and nonrecurring basis. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety. 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. We determine other than temporary impairment in real estate investments and debt and preferred equity investments, including intangibles, utilizing cash flow projections that apply, among other things, estimated revenue and expense growth rates, discount rates and capitalization rates, which are classified as Level 3 inputs. 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, debt and preferred equity investments, mortgages and other loans payable and other secured and unsecured debt. The carrying amount of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses reported in our consolidated balance sheets approximates fair value due to the short term nature of these instruments. The fair value of debt and 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. |
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures We assess our investments in unconsolidated joint ventures 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 investments for impairment based on the joint ventures' projected discounted cash flows. We do not believe that the values of any of our equity investments were impaired at June 30, 2016 . 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. |
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 debt and preferred equity investments is accrued based on the 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 an adjustment 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 debt or 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 debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount. For debt 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. Debt and 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 debt or preferred equity investment is resumed when such non-accrual debt or 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 for 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, original issue discounts, 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 operations. Any fees received at the time of sale or syndication are recognized as part of investment income. |
Reserve for Possible Credit Losses | Reserve for Possible Credit Losses The expense for possible credit losses in connection with debt and 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, product diversification, the size of the portfolio and current economic conditions. Based upon these factors, we establish a 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 loan reserves recorded during the three and six months ended June 30, 2016 and 2015. Debt and 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 debt and 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. |
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. |
Shares Contributed by Parent Company | Shares Contributed by Parent Company We present shares of SL Green common stock as a contra equity account in our financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, debt and 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 debt and preferred equity investments is located in New York City. See Note 5, "Debt and Preferred Equity 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. |
Accounting Standards Updates | Accounting Standards Updates In June 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The guidance replaces the current ‘incurred loss’ model with an ‘expected loss’ approach. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted after December 2018. The Company has not yet adopted this new guidance and is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update (ASU) 2016-07, Investments Equity Method and Joint Ventures (Topic 323). The guidance eliminates the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The guidance is effective for all entities for fiscal years beginning after 15 December 2016 and interim periods within those years. Early adoption is permitted in any interim or annual period. The Company has not yet adopted this new guidance and is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. The guidance requires lessees to recognize lease assets and lease liabilities for those leases classified as operating leases under the previous standard. The accounting applied by a lessor is largely unchanged from that applied under the previous standard. The Guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company has not yet adopted this new guidance and is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01 (ASU825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and to record changes in instruments-specific credit risk for financial liabilities measured under the fair value option in other comprehensive income. The guidance is effective for fiscal years beginning after December 15, 2017, and for interim periods therein. The Company has not yet adopted this new guidance and is currently evaluating the impact of adopting this new accounting standard on the Company’s consolidated financial statements. In April 2015, the FASB issued final guidance to simplify the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability (ASU 2015-03). The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The Company adopted the guidance effective January 1, 2016. Accordingly, as of June 30, 2016 and December 31, 2015, $22.8 million and $25.4 million , respectively of deferred debt issuance costs, net of amortization are presented as a direct reduction within Mortgages and other loans payable, Revolving credit facility, Term loan and senior unsecured notes on the Company's consolidated balance sheets. In February 2015, the FASB issued guidance that amends the current consolidation guidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities (ASU 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 Company adopted the guidance effective January 1, 2016. Under the revised guidance, certain entities, now qualify as variable interest entities. The change in designation did not have a material impact on our consolidated financial statements and did not change the consolidation conclusion on these entities. 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 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. In March 2016, the FASB issued implementation guidance which clarifies principal versus agent considerations in reporting revenue gross versus net (ASU 2016-08). In April 2016, the FASB issued implementation guidance which clarifies the identification of performance obligations (ASU 2016-10). In April 2016, the FASB amended its new revenue recognition guidance on identifying performance obligations to allow entities to disregard items that are immaterial and clarify when a good or service is separately identifiable (ASU 2016-10). In May 2016, the FASB issued implementation guidance relating to transition, collectability, noncash consideration and presentation matters (ASU 2016-12). These ASUs are effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. 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 has not yet adopted this guidance and is currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements. |
Organization and Basis of Pre25
Organization and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 (1) (unaudited) Commercial: Manhattan Office 16 8,463,245 95.6 % Retail (2)(3) 5 352,892 97.6 % Fee Interest 2 197,654 100.0 % 23 9,013,791 95.8 % Suburban Office 19 3,287,800 81.6 % Retail 1 52,000 100.0 % 20 3,339,800 81.9 % Total commercial properties 43 12,353,591 92.0 % Residential: Manhattan Residential (2) — 222,855 92.8 % Total portfolio 43 12,576,446 92.0 % (1) The weighted average occupancy for commercial properties represents the total leased square feet divided by total acquisition square footage. The weighted average occupancy for residential properties represents the total occupied units divided by total available units. (2) As of June 30, 2016 , we owned a building that was comprised of approximately 270,132 square feet of retail space and approximately 222,855 square feet of residential space. For the purpose of this report, we have included the building in the retail properties count and have bifurcated the square footage into the retail and residential components. (3) Includes two unconsolidated joint venture retail properties at 131-137 Spring Street comprised of approximately 68,342 square feet. |
Significant Accounting Polici26
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) | The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Identified intangible assets (included in other assets): Gross amount $ 306,575 $ 307,824 Accumulated amortization (244,350 ) (235,040 ) Net $ 62,225 $ 72,784 Identified intangible liabilities (included in deferred revenue): Gross amount $ 517,657 $ 523,228 Accumulated amortization (359,258 ) (346,857 ) Net $ 158,399 $ 176,371 |
Property Disposition (Tables)
Property Disposition (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of properties sold and income from discontinued operations | The following table summarizes the properties sold during the six months ended June 30, 2016: Property Disposition Date Property Type Approximate Square Feet Sales Price (1) (in millions) Loss on Sale (in millions) 7 International Drive May 2016 Land 31 Acres 20.0 (6.9 ) (1) Sales price represents the gross sales price for a property or the gross asset valuation for interests in a property. |
Debt and Preferred Equity Inv28
Debt and Preferred Equity Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of debt investments | As of June 30, 2016 and December 31, 2015 , we held the following debt investments, with an aggregate weighted average current yield of 9.55% at June 30, 2016 (in thousands): Loan Type June 30, 2016 June 30, 2016 June 30, 2016 (1) December 31, 2015 (1) Maturity (2) Fixed Rate Investments: Mezzanine Loan $ — $ 165,000 $ 72,271 $ 72,102 October 2016 Jr. Mortgage Participation/Mezzanine Loan — 1,109,000 189,380 104,661 March 2017 Mezzanine Loan (3a) 10,000 502,100 55,988 41,115 June 2017 Mortgage Loan (4) — — 26,284 26,262 February 2019 Mortgage Loan — — 447 513 August 2019 Mezzanine Loan — 15,000 3,500 3,500 September 2021 Mezzanine Loan (3b) — 89,527 19,939 19,936 November 2023 Mezzanine Loan (3c) — 115,000 12,921 24,916 June 2024 Mezzanine Loan — 95,000 30,000 30,000 January 2025 Mezzanine Loan (5) — — — 49,691 Loan Type June 30, 2016 June 30, 2016 June 30, 2016 (1) December 31, 2015 (1) Maturity (2) Jr. Mortgage Participation (6) — — — 49,000 Other (6)(7) — — — 23,510 Other (6)(7) — — — 66,183 Total fixed rate $ 10,000 $ 2,090,627 $ 410,730 $ 511,389 Floating Rate Investments: Mortgage/Mezzanine Loan (8) — — 105,278 94,901 October 2016 Mezzanine Loan — 360,000 99,811 99,530 November 2016 Mezzanine Loan 8,459 136,384 52,827 49,751 December 2016 Mezzanine Loan 281 39,201 13,761 13,731 December 2016 Mortgage/Mezzanine Loan (3d) 43,572 — 137,150 134,264 January 2017 Mezzanine Loan 1,127 118,949 28,796 28,551 January 2017 Mezzanine Loan (3e)(9) — 40,000 15,212 68,977 June 2017 Mortgage/Mezzanine Loan — — 32,679 — June 2017 Mortgage/Mezzanine Loan — — 22,919 22,877 July 2017 Mortgage/Mezzanine Loan — — 16,931 16,901 September 2017 Mortgage/Mezzanine Loan 4,234 — 19,607 19,282 October 2017 Mezzanine Loan — 60,000 14,931 14,904 November 2017 Mezzanine Loan (3f) — 85,000 15,011 29,505 December 2017 Mezzanine Loan (3g) — 65,000 14,542 28,563 December 2017 Mortgage/Mezzanine Loan (3h) 795 — 14,998 14,942 December 2017 Jr. Mortgage Participation — 40,000 19,880 19,846 April 2018 Mezzanine Loan — 175,000 34,785 34,725 April 2018 Jr. Mortgage Participation/Mezzanine Loan (3i) — 55,000 10,512 20,510 July 2018 Mortgage/Mezzanine Loan (10) 523 20,523 10,829 31,210 August 2018 Mezzanine Loan 2,325 45,025 34,318 — October 2018 Mezzanine Loan — 33,000 26,812 26,777 December 2018 Mezzanine Loan 4,560 156,383 54,731 52,774 December 2018 Mezzanine Loan 23,456 217,202 55,217 49,625 December 2018 Mezzanine Loan 6,383 16,383 5,363 — January 2019 Mezzanine Loan — 38,000 21,869 21,845 March 2019 Mezzanine Loan — 265,000 24,646 — April 2019 Mezzanine Loan (11) — — — 22,625 Mezzanine Loan (12) — — — 74,700 Mezzanine Loan (13) — — — 66,398 Jr. Mortgage Participation/Mezzanine Loan (6) — — — 18,395 Mezzanine Loan (14) — — — 40,346 Total floating rate $ 95,715 $ 1,966,050 $ 903,415 $ 1,116,455 Total $ 105,715 $ 4,056,677 $ 1,314,145 $ 1,627,844 (1) Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees. (2) Represents contractual maturity, excluding any unexercised extension options. (3) Carrying value is net of the following amount that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting: (a) $41.3 million , (b) $5.0 million , (c) $12.0 million , (d) $36.3 million , (e) $14.5 million , (f) $14.6 million , (g) $14.1 million , (h) $5.1 million and (i) $10.0 million . (4) In September 2014, we acquired a $26.4 million mortgage loan at a $0.2 million discount and a $5.7 million junior mortgage participation at a $5.7 million discount. The junior mortgage participation was a nonperforming loan at acquisition and is currently on non-accrual status. (5) In April 2016, we closed on an option to acquire a 20% interest in the underlying asset at a previously agreed upon purchase option valuation, and our mezzanine loan was simultaneously repaid. (6) These loans were repaid in March 2016. (7) These loans were collateralized by defeasance securities. (8) In April 2016, the maturity date was extended to October 2016. (9) In March 2016, the mortgage was sold. (10) In January 2016, the loans were modified. In March 2016, the mortgage was sold. (11) This loan was repaid in June 2016. (12) This loan was repaid in May 2016. (13) In March 2016, we contributed our interest in the loan in exchange for a joint venture interest which is now accounted for under the equity method of accounting. It is included in unconsolidated joint ventures on the consolidated balance sheets. (14) These loans were repaid in February 2016. |
Schedule of preferred equity investments | As of June 30, 2016 and December 31, 2015, we held the following preferred equity investments with an aggregate weighted average current yield of 7.97% at June 30, 2016 (in thousands): Type June 30, 2016 June 30, 2016 June 30, 2016 December 31, 2015 Initial Preferred equity $ — $ 71,486 $ 9,974 $ 9,967 March 2018 Preferred equity 4,779 59,966 33,062 32,209 November 2018 $ 4,779 $ 131,452 $ 43,036 $ 42,176 (1) Carrying value is net of deferred origination fees. |
Investments in Unconsolidated29
Investments in Unconsolidated Joint Ventures (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of general information on joint ventures | The table below provides general information on each of our joint ventures as of June 30, 2016 : Property Partner Ownership Interest Economic Interest Approximate Square Feet Acquisition Date Acquisition Price (1) (in thousands) 131-137 Spring Street Invesco Real Estate 20.00% 20.00% 68,342 August 2015 $ 277,750 76 11th Avenue (2) Oxford/Vornado 33.33% 36.58% 764,000 March 2016 138,240 (1) Acquisition price represents the actual or implied gross purchase price for the joint venture, which is not adjusted for subsequent acquisitions of additional interests. (2) The joint venture owns two mezzanine notes secured by interests in the entity that owns 76 11th Avenue. The difference between our ownership interest and our economic interest results from our right to 50% of the total exit fee while each of our partners is entitled to receive 25% of the total exit fee. As of June 30, 2016 and December 31, 2015 , the carrying value for acquisition, development and construction arrangements were as follows (in thousands): Loan Type June 30, 2016 December 31, 2015 Maturity Date Mezzanine loan and preferred equity $ 100,000 $ 99,936 March 2017 $ 100,000 $ 99,936 |
Schedule of first mortgage notes payable collateralized by the respective joint venture properties and assignment of leases | The first mortgage notes and other loans payable collateralized by the respective joint venture properties and assignment of leases at June 30, 2016 and December 31, 2015 , respectively, are as follows (amounts in thousands): Property Maturity Date Interest Rate (1) June 30, 2016 December 31, 2015 Floating Rate Debt: 131-137 Spring Street August 2020 1.99 % $ 141,000 $ 141,000 Total joint venture mortgages and other loans payable $ 141,000 $ 141,000 Deferred financing costs, net (4,524 ) (5,077 ) Total joint venture mortgages and other loans payable, net $ 136,476 $ 135,923 (1) Effective weighted average interest rate for the three months ended June 30, 2016 , taking into account interest rate hedges in effect during the period. |
Schedule of combined balance sheets for the unconsolidated joint ventures | The combined balance sheets for the unconsolidated joint ventures, at June 30, 2016 and December 31, 2015 are as follows (in thousands): June 30, 2016 December 31, 2015 Assets Commercial real estate property, net $ 282,520 $ 285,689 Debt and preferred equity investments, net 243,177 99,936 Other assets 18,891 16,897 Total assets $ 544,588 $ 402,522 Liabilities and members' equity Mortgages and other loans payable, net $ 136,476 $ 135,923 Other liabilities 23,685 25,462 Members' equity 384,427 241,137 Total liabilities and members' equity $ 544,588 $ 402,522 Company's investments in unconsolidated joint ventures $ 148,001 $ 100,192 |
Schedule of combined statements of operations for the unconsolidated joint ventures | The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the three and six months ended June 30, 2016 and 2015 , are as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Total revenues $ 16,946 $ 2,159 $ 23,883 $ 4,292 Operating expenses 804 5 1,178 5 Real estate taxes 565 — 848 — Interest expense, net of interest income 1,409 — 2,107 — Amortization of deferred financing costs 554 — 831 — Transaction related costs — — — 6 Depreciation and amortization 4,202 — 6,303 Total expenses $ 7,534 $ 5 $ 11,267 $ 11 Net income $ 9,412 $ 2,154 $ 12,616 $ 4,281 Company's equity in net income from unconsolidated joint ventures 3,666 2,154 6,123 4,281 |
Mortgages and Other Loans Pay30
Mortgages and Other Loans Payable (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 respective properties and assignment of leases or debt investments at June 30, 2016 and December 31, 2015 , respectively, were as follows (amounts in thousands): Property Maturity Date Interest Rate (1) June 30, 2016 December 31, 2015 Fixed Rate Debt: 919 Third Avenue (2) June 2023 5.12 % $ 500,000 $ 500,000 Floating Rate Debt: Master Repurchase Agreement July 2016 3.59 % 134,259 253,424 Total mortgages and other loans payable $ 634,259 $ 753,424 Deferred financing costs, net of amortization (6,913 ) (7,696 ) Total mortgages and other loans payable, net $ 627,346 $ 745,728 (1) Effective weighted average interest rate for the three months ended June 30, 2016 . (2) We own a 51.0% controlling interest in the joint venture that is the borrower on this loan. |
Corporate Indebtedness (Tables)
Corporate Indebtedness (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015, respectively, by scheduled maturity date (dollars in thousands): Issuance June 30, June 30, December 31, 2015 Accreted Balance Coupon (1) Effective Term Maturity Date August 5, 2011 (2) $ 250,000 $ 249,845 $ 249,810 5.00 % 5.00 % 7 August 2018 March 16, 2010 (2) 250,000 250,000 250,000 7.75 % 7.75 % 10 March 2020 November 15, 2012 (2) 200,000 200,000 200,000 4.50 % 4.50 % 10 December 2022 December 17, 2015 (2) 100,000 100,000 100,000 4.27 % 4.27 % 10 December 2025 March 31, 2006 (3) — — 255,296 $ 800,000 $ 799,845 $ 1,055,106 Deferred financing costs, net (5,260 ) (5,303 ) $ 794,585 $ 1,049,803 (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) This note was repaid in March 2016. |
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 mortgages and other loans payable, 2012 credit facility and senior unsecured notes as of June 30, 2016 , including as-of-right extension options and put options, were as follows (in thousands): Scheduled Principal Revolving Unsecured Term Loan Senior Unsecured Notes Total Remaining 2016 $ 3,566 $ 134,259 $ — $ — $ — 137,825 2017 7,411 — — — — 7,411 2018 7,799 — — — 250,000 257,799 2019 8,207 — — 933,000 — 941,207 2020 8,637 — 285,000 — 250,000 543,637 Thereafter 22,786 441,594 — — 300,000 764,380 $ 58,406 $ 575,853 $ 285,000 $ 933,000 $ 800,000 $ 2,652,259 |
Schedule of Consolidated Interest expense, excluding capitalized interest | Consolidated interest expense, excluding capitalized interest, was comprised of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Interest expense $ 26,773 $ 27,982 $ 59,087 $ 56,843 Interest capitalized (328 ) (321 ) (437 ) (1,107 ) Interest income (2 ) (5 ) (6 ) (12 ) Interest expense, net $ 26,443 $ 27,656 $ 58,644 $ 55,724 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Debt and preferred equity investments $ 1,357,181 (1) $ 1,670,020 (1) Fixed rate debt $ 1,799,844 $ 1,940,517 $ 1,585,106 $ 1,663,078 Variable rate debt 852,259 855,754 2,150,424 2,164,673 $ 2,652,103 $ 2,796,271 $ 3,735,530 $ 3,827,751 (1) At June 30, 2016 , debt and preferred equity investments had an estimated fair value ranging between $1.4 billion and $1.5 billion . At December 31, 2015, debt and preferred equity investments had an estimated fair value ranging between $1.7 billion and $1.8 billion . |
Financial Instruments_ Deriva33
Financial Instruments: Derivatives and Hedging (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 operations for the three months ended June 30, 2016 and 2015 , respectively (in thousands): Amount of Loss Recognized in Other Comprehensive Loss (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income Amount of Gain Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain Recognized in Income on Derivative Amount of Gain Recognized into Income (Ineffective Portion) Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Derivative 2016 2015 2016 2015 2016 2015 (as adjusted) (as adjusted) (as adjusted) Interest Rate Swap $ (1 ) $ (27 ) Interest expense $ 199 $ 250 Interest expense $ 1 $ 1 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 operations for the six months ended June 30, 2016 and 2015 , respectively (in thousands): Amount of Loss Recognized in Other Comprehensive Loss (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income Amount of Gain Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain Recognized in Income on Derivative Amount of Gain Recognized into Income (Ineffective Portion) Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Derivative 2016 2015 2016 2015 2016 2015 (as adjusted) (as adjusted) (as adjusted) Interest Rate Swap $ (13 ) $ (95 ) Interest expense $ 431 $ 499 Interest expense $ 3 $ 2 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 (in thousands): Non-cancellable operating leases Remaining 2016 $ 10,272 2017 20,586 2018 20,586 2019 20,586 2020 20,586 Thereafter 328,088 Total minimum lease payments $ 420,704 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Selected results of operations and selected asset information | Selected results of operations for the three and six months ended June 30, 2016 and 2015, and selected asset information as of June 30, 2016 and December 31, 2015, regarding our operating segments are as follows (in thousands): Real Estate Segment Debt and Preferred Equity Segment Total Company Total revenues: Three months ended: June 30, 2016 $ 183,596 $ 48,162 $ 231,758 June 30, 2015, as adjusted 187,140 47,491 234,631 Six months ended: June 30, 2016 $ 365,728 $ 105,694 $ 471,422 June 30, 2015, as adjusted $ 358,059 $ 91,240 $ 449,299 Income from continuing operations before loss on sale of real estate: Three months ended: June 30, 2016 $ 69,654 $ 5,266 $ 74,920 June 30, 2015, as adjusted $ 78,199 $ 191 $ 78,390 Six months ended: June 30, 2016 $ 132,791 $ 14,329 $ 147,120 June 30, 2015, as adjusted $ 124,587 $ 8,732 $ 133,319 Real Estate Segment Debt and Preferred Equity Segment Total Company Total assets As of: June 30, 2016 $ 6,677,267 $ 1,915,521 $ 8,592,788 December 31, 2015 $ 6,892,079 $ 1,941,238 $ 8,833,317 |
Organization and Basis of Pre36
Organization and Basis of Presentation (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)ft²property | Dec. 31, 2015USD ($)property | |
Real estate properties | ||
Percentage of ownership in SL Green Operating Partnership owned by SL Green Realty Corp (as a percent) | 95.70% | |
Number of Properties Transferred by Parent Company | property | 2 | |
Carrying value of properties transferred by SL Green | $ | $ 395 | |
Number of Entities Transferred by Parent Company | property | 1 | |
Carrying Value of Entities Transferred by Parent Company | $ | $ 1,700 | |
Number of Properties | property | 43 | |
Approximate Square Feet (sqft) | ft² | 12,576,446 | |
Weighted Average Occupancy (as a percent) | 92.00% | |
Debt and preferred equity investments including investments held by unconsolidated joint ventures | $ | $ 1,700 | |
Debt and preferred equity investments and other financing receivables included in other balance sheet items | $ | $ 300 | |
Manhattan | ||
Real estate properties | ||
Number of Properties | property | 23 | |
Approximate Square Feet (sqft) | ft² | 9,013,791 | |
Weighted Average Occupancy (as a percent) | 95.80% | |
Suburban | ||
Real estate properties | ||
Number of Properties | property | 20 | |
Approximate Square Feet (sqft) | ft² | 3,339,800 | |
Weighted Average Occupancy (as a percent) | 81.90% | |
Office | Manhattan | ||
Real estate properties | ||
Number of Properties | property | 16 | |
Approximate Square Feet (sqft) | ft² | 8,463,245 | |
Weighted Average Occupancy (as a percent) | 95.60% | |
Office | Suburban | ||
Real estate properties | ||
Number of Properties | property | 19 | |
Approximate Square Feet (sqft) | ft² | 3,287,800 | |
Weighted Average Occupancy (as a percent) | 81.60% | |
Retail | 131-137 Spring Street | ||
Real estate properties | ||
Approximate Square Feet (sqft) | ft² | 68,342 | |
Number of unconsolidated joint venture properties | property | 2 | |
Retail | Manhattan | ||
Real estate properties | ||
Number of Properties | property | 5 | |
Approximate Square Feet (sqft) | ft² | 352,892 | |
Weighted Average Occupancy (as a percent) | 97.60% | |
Retail | Suburban | ||
Real estate properties | ||
Number of Properties | property | 1 | |
Approximate Square Feet (sqft) | ft² | 52,000 | |
Weighted Average Occupancy (as a percent) | 100.00% | |
Fee Interest | Manhattan | ||
Real estate properties | ||
Number of Properties | property | 2 | |
Approximate Square Feet (sqft) | ft² | 197,654 | |
Weighted Average Occupancy (as a percent) | 100.00% | |
Commercial | ||
Real estate properties | ||
Number of Properties | property | 43 | |
Approximate Square Feet (sqft) | ft² | 12,353,591 | |
Weighted Average Occupancy (as a percent) | 92.00% | |
Residential | Manhattan | ||
Real estate properties | ||
Number of Properties | property | 0 | |
Approximate Square Feet (sqft) | ft² | 222,855 | |
Weighted Average Occupancy (as a percent) | 92.80% | |
Dual property type, retail portion | ||
Real estate properties | ||
Approximate Square Feet (sqft) | ft² | 270,132 | |
Dual property type, residential portion | ||
Real estate properties | ||
Approximate Square Feet (sqft) | ft² | 222,855 |
Significant Accounting Polici37
Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Investment in Commercial Real Estate Properties | |||||
Commercial real estate properties | $ 6,090,604,000 | $ 6,090,604,000 | $ 6,160,645,000 | ||
Mortgages and other loans payable, net | 627,346,000 | 627,346,000 | 745,728,000 | ||
Increase in rental revenue from amortization of acquired leases | 3,800,000 | $ 6,900,000 | 7,800,000 | $ 12,600,000 | |
Identified intangible assets (included in other assets): | |||||
Gross amount | 306,575,000 | 306,575,000 | 307,824,000 | ||
Accumulated amortization | (244,350,000) | (244,350,000) | (235,040,000) | ||
Net | 62,225,000 | 62,225,000 | 72,784,000 | ||
Identified intangible liabilities (included in deferred revenue): | |||||
Gross amount | 517,657,000 | 517,657,000 | 523,228,000 | ||
Accumulated amortization | (359,258,000) | (359,258,000) | (346,857,000) | ||
Net | 158,399,000 | $ 158,399,000 | 176,371,000 | ||
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 | ||||
Building | Minimum | |||||
Investment in Commercial Real Estate Properties | |||||
Estimated useful life (years) | 3 years | ||||
Building | Maximum | |||||
Investment in Commercial Real Estate Properties | |||||
Estimated useful life (years) | 40 years | ||||
Variable Interest Entity, Primary Beneficiary | |||||
Investment in Commercial Real Estate Properties | |||||
Commercial real estate properties | 1,400,000,000 | $ 1,400,000,000 | 300,000,000 | ||
Mortgages and other loans payable, net | $ 493,600,000 | $ 493,600,000 | $ 0 |
Significant Accounting Polici38
Significant Accounting Policies (Revenue Recognition)(Details) | 6 Months Ended |
Jun. 30, 2016 | |
Revenue Recognition | |
Period after which payments become due (days) | 90 days |
Significant Accounting Polici39
Significant Accounting Policies (Concentrations of Credit Risk/Reclassification)(Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Concentrations of Credit Risk | ||
Deferred debt issuance cost, net of amortization | $ 22.8 | $ 25.4 |
Annualized cash rent | Customer concentration | ||
Concentrations of Credit Risk | ||
Maximum percentage of annualized cash rent for any one tenant not individually disclosed (more than) | 5.00% | |
Annualized cash rent | Customer concentration | 1185 Avenue of the Americas | ||
Concentrations of Credit Risk | ||
Percentage of concentration | 14.90% | |
Annualized cash rent | Customer concentration | 625 Madison Avenue | ||
Concentrations of Credit Risk | ||
Percentage of concentration | 9.60% | |
Annualized cash rent | Customer concentration | 919 Third Avenue | ||
Concentrations of Credit Risk | ||
Percentage of concentration | 8.20% | |
Annualized cash rent | Customer concentration | 750 Third Avenue | ||
Concentrations of Credit Risk | ||
Percentage of concentration | 7.70% | |
Annualized cash rent | Customer concentration | 810 Seventh Avenue | ||
Concentrations of Credit Risk | ||
Percentage of concentration | 7.40% | |
Annualized cash rent | Customer concentration | 1350 Avenue of the Americas | ||
Concentrations of Credit Risk | ||
Percentage of concentration | 7.00% | |
Annualized cash rent | Customer concentration | 125 Park Avenue | ||
Concentrations of Credit Risk | ||
Percentage of concentration | 6.70% | |
Annualized cash rent | Customer concentration | 555 W. 57th Street | ||
Concentrations of Credit Risk | ||
Percentage of concentration | 6.60% |
Property Disposition (Details)
Property Disposition (Details) $ in Millions | 1 Months Ended | |
May 31, 2016USD ($)a | Jun. 30, 2016ft² | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Approximate Square Feet (sqft) | ft² | 12,576,446 | |
7 International Drive [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Approximate Square Feet (sqft) | a | 31 | |
Sales Price | $ 20 | |
Loss on Sale | $ (6.9) |
Debt and Preferred Equity Inv41
Debt and Preferred Equity Investments (Details) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($)segment | Dec. 31, 2015USD ($) | Apr. 30, 2016 | Sep. 30, 2014USD ($) | |
Debt and preferred equity investments | |||||
Increase in debt and preferred equity investments | $ 255,000,000 | $ 386,200,000 | |||
Repayments, participations and sales | $ 567,900,000 | $ 109,800,000 | |||
Interest rate (as a percent) | 9.55% | 9.55% | |||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | $ 105,715,000 | ||||
Senior Financing | 4,056,677,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | $ 1,314,145,000 | $ 1,627,844,000 | |||
Number of portfolio segments | segment | 1 | 1 | |||
Amount of financing receivables included in other assets | $ 168,600,000 | 168,300,000 | |||
Mezzanine Loan, June 2017 | |||||
Debt Investments Held [Abstract] | |||||
Amount participated out | 41,300,000 | ||||
Mezzanine Loan, November 2023 | |||||
Debt Investments Held [Abstract] | |||||
Amount participated out | 5,000,000 | ||||
Mezzanine Loan, June 2024 | |||||
Debt Investments Held [Abstract] | |||||
Amount participated out | 12,000,000 | ||||
Mezzanine Loan Repaid in April 2016 | |||||
Debt Investments Held [Abstract] | |||||
Ownership Interest (as a percent) | 20.00% | ||||
Mortgage/Mezzanine Loan, January 2017 | |||||
Debt Investments Held [Abstract] | |||||
Amount participated out | 36,300,000 | ||||
Mezzanine Loan, June 2017 | |||||
Debt Investments Held [Abstract] | |||||
Amount participated out | 14,500,000 | ||||
Mezzanine Loan, December 2017 | |||||
Debt Investments Held [Abstract] | |||||
Amount participated out | 14,600,000 | ||||
Mezzanine Loan, December 2017 | |||||
Debt Investments Held [Abstract] | |||||
Amount participated out | 14,100,000 | ||||
Mortgage/Mezzanine Loan, December 2017 | |||||
Debt Investments Held [Abstract] | |||||
Amount participated out | 5,100,000 | ||||
Junior Participation/Mezzanine Loan, July 2018 | |||||
Debt Investments Held [Abstract] | |||||
Amount participated out | $ 10,000,000 | ||||
Preferred Equity Investments in Mortgage Loans | |||||
Debt and preferred equity investments | |||||
Interest rate (as a percent) | 7.97% | ||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | $ 4,779,000 | ||||
Senior Financing | 131,452,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 43,036,000 | 42,176,000 | |||
Preferred Equity, March 2018 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 71,486,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 9,974,000 | 9,967,000 | |||
Preferred Equity, November 2018 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 4,779,000 | ||||
Senior Financing | 59,966,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 33,062,000 | 32,209,000 | |||
Junior Mortgage Participation Acquired in September 2014 | |||||
Debt Investments Held [Abstract] | |||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 0 | 0 | |||
Fixed Rate Investments | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 10,000,000 | ||||
Senior Financing | 2,090,627,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 410,730,000 | 511,389,000 | |||
Fixed Rate Investments | Mezzanine Loan, October 2016 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 165,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 72,271,000 | 72,102,000 | |||
Fixed Rate Investments | Junior Mortgage Participation/Mezzanine Loan, March 2017 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 1,109,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 189,380,000 | 104,661,000 | |||
Fixed Rate Investments | Mezzanine Loan, June 2017 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 10,000,000 | ||||
Senior Financing | 502,100,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 55,988,000 | 41,115,000 | |||
Fixed Rate Investments | Mortgage Loan, February 2019 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 26,284,000 | 26,262,000 | |||
Loan acquired | $ 26,400,000 | ||||
Discount on loan acquired | 200,000 | ||||
Fixed Rate Investments | Mortgage Loan, August 2019 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 447,000 | 513,000 | |||
Fixed Rate Investments | Mezzanine Loan, September 2021 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 15,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 3,500,000 | 3,500,000 | |||
Fixed Rate Investments | Mezzanine Loan, November 2023 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 89,527,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 19,939,000 | 19,936,000 | |||
Fixed Rate Investments | Mezzanine Loan, June 2024 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 115,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 12,921,000 | 24,916,000 | |||
Fixed Rate Investments | Mezzanine Loan, January 2025 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 95,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 30,000,000 | 30,000,000 | |||
Fixed Rate Investments | Mezzanine Loan Repaid in April 2016 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 0 | 49,691,000 | |||
Fixed Rate Investments | Junior Mortgage Participation Loan Repaid in March 2016 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 0 | 49,000,000 | |||
Fixed Rate Investments | Loan Collateralized by Defeasance Securities Repaid in March 2016 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 0 | 23,510,000 | |||
Fixed Rate Investments | Loan Collateralized by Defeasance Securities Repaid in March 2016, 2 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 0 | 66,183,000 | |||
Fixed Rate Investments | Junior Mortgage Participation, Related To Mortgage Loan, February 2019 | |||||
Debt Investments Held [Abstract] | |||||
Loan acquired | 5,700,000 | ||||
Discount on loan acquired | $ 5,700,000 | ||||
Floating Rate Investments | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 95,715,000 | ||||
Senior Financing | 1,966,050,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 903,415,000 | 1,116,455,000 | |||
Floating Rate Investments | Mortgage/Mezzanine Loan, October 2016 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 105,278,000 | 94,901,000 | |||
Floating Rate Investments | Mezzanine Loan, November 2016 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 360,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 99,811,000 | 99,530,000 | |||
Floating Rate Investments | Mezzanine Loan, December 2016 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 8,459,000 | ||||
Senior Financing | 136,384,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 52,827,000 | 49,751,000 | |||
Floating Rate Investments | Mezzanine Loan, December 2016 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 281,000 | ||||
Senior Financing | 39,201,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 13,761,000 | 13,731,000 | |||
Floating Rate Investments | Mortgage/Mezzanine Loan, January 2017 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 43,572,000 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 137,150,000 | 134,264,000 | |||
Floating Rate Investments | Mezzanine Loan, January 2017 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 1,127,000 | ||||
Senior Financing | 118,949,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 28,796,000 | 28,551,000 | |||
Floating Rate Investments | Mezzanine Loan, June 2017 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 40,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 15,212,000 | 68,977,000 | |||
Floating Rate Investments | Mezzanine Loan, June 2017 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 32,679,000 | 0 | |||
Floating Rate Investments | Mortgage/Mezzanine Loan, July 2017 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 22,919,000 | 22,877,000 | |||
Floating Rate Investments | Mortgage/Mezzanine Loan, September 2017 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 16,931,000 | 16,901,000 | |||
Floating Rate Investments | Mortgage/Mezzanine Loan, October 2017 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 4,234,000 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 19,607,000 | 19,282,000 | |||
Floating Rate Investments | Mezzanine Loan, November 2017 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 60,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 14,931,000 | 14,904,000 | |||
Floating Rate Investments | Mezzanine Loan, December 2017 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 85,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 15,011,000 | 29,505,000 | |||
Floating Rate Investments | Mezzanine Loan, December 2017 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 65,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 14,542,000 | 28,563,000 | |||
Floating Rate Investments | Mortgage/Mezzanine Loan, December 2017 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 795,000 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 14,998,000 | 14,942,000 | |||
Floating Rate Investments | Junior Participation Loan, April 2018 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 40,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 19,880,000 | 19,846,000 | |||
Floating Rate Investments | Mezzanine Loan, April 2018 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 175,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 34,785,000 | 34,725,000 | |||
Floating Rate Investments | Junior Participation/Mezzanine Loan, July 2018 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 55,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 10,512,000 | 20,510,000 | |||
Floating Rate Investments | Mezzanine Loan, August 2018 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 523,000 | ||||
Senior Financing | 20,523,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 10,829,000 | 31,210,000 | |||
Floating Rate Investments | Mezzanine Loan, October 2018 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 2,325,000 | ||||
Senior Financing | 45,025,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 34,318,000 | 0 | |||
Floating Rate Investments | Mezzanine Loan, December 2018 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 33,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 26,812,000 | 26,777,000 | |||
Floating Rate Investments | Mezzanine Loan, December 2018 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 4,560,000 | ||||
Senior Financing | 156,383,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 54,731,000 | 52,774,000 | |||
Floating Rate Investments | Mezzanine Loan, December 2018 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 23,456,000 | ||||
Senior Financing | 217,202,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 55,217,000 | 49,625,000 | |||
Floating Rate Investments | Mezzanine Loan, January 2019 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 6,383,000 | ||||
Senior Financing | 16,383,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 5,363,000 | 0 | |||
Floating Rate Investments | Mezzanine Loan, March 2019 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 38,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 21,869,000 | 21,845,000 | |||
Floating Rate Investments | Mezzanine Loan, April 2019 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 265,000,000 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 24,646,000 | 0 | |||
Floating Rate Investments | Mezzanine Loan Repaid in June 2016 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 0 | 22,625,000 | |||
Floating Rate Investments | Mezzanine Loan Repaid in May 2016 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 0 | 74,700,000 | |||
Floating Rate Investments | Mezzanine Loan Contributed for a Joint Venture Interest | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 0 | 66,398,000 | |||
Floating Rate Investments | Jr. Mortgage Participation/Mezzanine Loan Repaid in March 2016 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | 0 | 18,395,000 | |||
Floating Rate Investments | Mezzanine Loan Repaid in February 2016 | |||||
Debt Investments Held [Abstract] | |||||
Future Funding Obligations | 0 | ||||
Senior Financing | 0 | ||||
Carrying Value, Net of Discounts and Deferred Origination Fees | $ 0 | $ 40,346,000 |
Investments in Unconsolidated42
Investments in Unconsolidated Joint Ventures (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)ft²note | Dec. 31, 2015USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Approximate Square Feet (sqft) | ft² | 12,576,446 | |
Acquisition, development and construction arrangements, carrying value | $ 100,000 | $ 99,936 |
Participating Financing Due March 2017 | ||
Schedule of Equity Method Investments [Line Items] | ||
Acquisition, development and construction arrangements, carrying value | $ 100,000 | $ 99,936 |
131-137 Spring Street | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership Interest (as a percent) | 20.00% | |
Economic Interest (as a percent) | 20.00% | |
Approximate Square Feet (sqft) | ft² | 68,342 | |
Acquisition Price | $ 277,750 | |
76 11th Avenue | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership Interest (as a percent) | 33.33% | |
Economic Interest (as a percent) | 36.58% | |
Approximate Square Feet (sqft) | ft² | 764,000 | |
Acquisition Price | $ 138,240 | |
76 11th Avenue | Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Exit fee, percentage owned | 50.00% | |
Partners' Interest | 76 11th Avenue | Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of mezzanine notes secured | note | 2 | |
Exit fee, percentage owned | 25.00% |
Investments in Unconsolidated43
Investments in Unconsolidated Joint Ventures (Mortgages and Other Loans Payable) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Deferred financing costs, net | $ (22,800) | $ (25,400) |
Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Total joint venture mortgages and other loans payable | 141,000 | 141,000 |
Deferred financing costs, net | (4,524) | (5,077) |
Total joint venture mortgages and other loans payable, net | 136,476 | 135,923 |
131-137 Spring Street | Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Floating rate debt | $ 141,000 | $ 141,000 |
Weighted Average | 131-137 Spring Street | Joint Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Interest rate (as a percent) | 1.99% |
Investments in Unconsolidated44
Investments in Unconsolidated Joint Ventures (Schedules of Combined Financial Statements for the Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Assets | |||||
Commercial real estate property, net | $ 6,090,604 | $ 6,090,604 | $ 6,160,645 | ||
Debt and preferred equity investments, net | 1,357,181 | 1,357,181 | 1,670,020 | ||
Other assets | 414,822 | 414,822 | 355,566 | ||
Liabilities and members' equity | |||||
Mortgages and other loans payable, net | 627,346 | 627,346 | 745,728 | ||
Other liabilities | 189,566 | 189,566 | 116,088 | ||
Company's investments in unconsolidated joint ventures | 148,001 | 148,001 | 100,192 | ||
Combined statements of income for the unconsolidated joint ventures | |||||
Operating expenses | 38,809 | $ 38,652 | 80,770 | $ 81,170 | |
Real estate taxes | 37,302 | 35,180 | 74,526 | 69,704 | |
Amortization of deferred financing costs | 1,732 | 1,303 | 3,872 | 3,256 | |
Depreciation and amortization | 50,651 | 50,241 | 101,449 | 99,669 | |
Total expenses | 160,504 | 158,395 | 330,425 | 320,212 | |
Company's equity in net income from unconsolidated joint ventures | 3,666 | 2,154 | 6,123 | 4,281 | |
Joint Venture | |||||
Assets | |||||
Commercial real estate property, net | 282,520 | 282,520 | 285,689 | ||
Debt and preferred equity investments, net | 243,177 | 243,177 | 99,936 | ||
Other assets | 18,891 | 18,891 | 16,897 | ||
Total assets | 544,588 | 544,588 | 402,522 | ||
Liabilities and members' equity | |||||
Mortgages and other loans payable, net | 136,476 | 136,476 | 135,923 | ||
Other liabilities | 23,685 | 23,685 | 25,462 | ||
Members' equity | 384,427 | 384,427 | 241,137 | ||
Total liabilities and members' equity | 544,588 | 544,588 | $ 402,522 | ||
Combined statements of income for the unconsolidated joint ventures | |||||
Total revenues | 16,946 | 2,159 | 23,883 | 4,292 | |
Operating expenses | 804 | 5 | 1,178 | 5 | |
Real estate taxes | 565 | 0 | 848 | 0 | |
Interest expense, net of interest income | 1,409 | 0 | 2,107 | 0 | |
Amortization of deferred financing costs | 554 | 0 | 831 | 0 | |
Transaction related costs | 0 | 0 | 0 | 6 | |
Depreciation and amortization | 4,202 | 0 | 6,303 | ||
Total expenses | 7,534 | 5 | 11,267 | 11 | |
Net income | 9,412 | 2,154 | 12,616 | 4,281 | |
Company's equity in net income from unconsolidated joint ventures | $ 3,666 | $ 2,154 | $ 6,123 | $ 4,281 |
Mortgages and Other Loans Pay45
Mortgages and Other Loans Payable (Details) - USD ($) | Dec. 06, 2015 | Jul. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Mortgage note and other loan payable | ||||
Total mortgages and other loans payable | $ 634,259,000 | $ 753,424,000 | ||
Deferred financing costs, net of amortization | (6,913,000) | (7,696,000) | ||
Total mortgages and other loans payable, net | 627,346,000 | 745,728,000 | ||
Gross book value of the property and investment collateralizing the mortgage note and other loan payable | 1,800,000,000 | 2,000,000,000 | ||
Master Repurchase Agreement | ||||
Mortgage note and other loan payable | ||||
Floating rate debt | 134,259,000 | 253,424,000 | ||
Maximum borrowing capacity | $ 300,000,000 | |||
Basis point fee (as a percent) | 0.25% | |||
Threshold amount for basis point fee to be applicable (less than) | $ 150,000,000 | |||
Master Repurchase Agreement | Weighted Average | ||||
Mortgage note and other loan payable | ||||
Interest rate (as a percent) | 3.59% | |||
Master Repurchase Agreement | Minimum | LIBOR | ||||
Mortgage note and other loan payable | ||||
Credit facility, interest rate (as a percent) | 2.50% | |||
Master Repurchase Agreement | Maximum | LIBOR | ||||
Mortgage note and other loan payable | ||||
Credit facility, interest rate (as a percent) | 3.25% | |||
919 Third Avenue | ||||
Mortgage note and other loan payable | ||||
Fixed rate debt | $ 500,000,000 | $ 500,000,000 | ||
Controlling interest in the joint venture (as a percent) | 51.00% | |||
919 Third Avenue | Weighted Average | ||||
Mortgage note and other loan payable | ||||
Interest rate (as a percent) | 5.12% | |||
Subsequent Event | Uncommitted Master Repurchase Agreement, 2 | ||||
Mortgage note and other loan payable | ||||
Maximum borrowing capacity | $ 300,000,000 | |||
Extension term (in years) | 1 year | |||
Subsequent Event | Uncommitted Master Repurchase Agreement, 2 | Minimum | LIBOR | ||||
Mortgage note and other loan payable | ||||
Credit facility, interest rate (as a percent) | 2.25% | |||
Subsequent Event | Uncommitted Master Repurchase Agreement, 2 | Maximum | LIBOR | ||||
Mortgage note and other loan payable | ||||
Credit facility, interest rate (as a percent) | 4.00% |
Corporate Indebtedness (Details
Corporate Indebtedness (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Corporate Indebtedness | |||||
Revolving credit facility, net | $ 277,420,000 | $ 277,420,000 | $ 985,055,000 | ||
Carrying value | 2,652,259,000 | 2,652,259,000 | |||
Debt disclosures by scheduled maturity date | |||||
Accreted Balance | 1,724,585,000 | 1,724,585,000 | 1,979,317,000 | ||
Deferred financing costs, net | (22,800,000) | (22,800,000) | (25,400,000) | ||
Scheduled amortization and principal repayments | |||||
Remaining 2,016 | 137,825,000 | 137,825,000 | |||
2,017 | 7,411,000 | 7,411,000 | |||
2,018 | 257,799,000 | 257,799,000 | |||
2,019 | 941,207,000 | 941,207,000 | |||
2,020 | 543,637,000 | 543,637,000 | |||
Thereafter | 764,380,000 | 764,380,000 | |||
Total amortization of debt and principal repayments | 2,652,259,000 | 2,652,259,000 | |||
Interest expense | |||||
Interest expense | 26,773,000 | $ 27,982,000 | 59,087,000 | $ 56,843,000 | |
Interest capitalized | (328,000) | (321,000) | (437,000) | (1,107,000) | |
Interest income | (2,000) | (5,000) | (6,000) | (12,000) | |
Interest expense, net | 26,443,000 | $ 27,656,000 | 58,644,000 | $ 55,724,000 | |
Senior Unsecured Notes | |||||
Debt disclosures by scheduled maturity date | |||||
Unpaid Principal Balance | 800,000,000 | 800,000,000 | |||
Accreted Balance | 799,845,000 | 799,845,000 | 1,055,106,000 | ||
Deferred financing costs, net | (5,260,000) | (5,260,000) | (5,303,000) | ||
Total | 794,585,000 | 794,585,000 | 1,049,803,000 | ||
Revolving credit facility | |||||
Corporate Indebtedness | |||||
Maximum borrowing capacity | 1,600,000,000 | 1,600,000,000 | |||
Maximum borrowing capacity, optional expansion | 3,000,000,000 | $ 3,000,000,000 | |||
Facility fee on total commitments, payable quarterly in arrears (as a percent) | 0.25% | ||||
Revolving credit facility, net | 285,000,000 | $ 285,000,000 | |||
Carrying value | $ 285,000,000 | $ 285,000,000 | |||
Debt disclosures by scheduled maturity date | |||||
Effective Rate (as a percent) | 1.69% | 1.69% | |||
Scheduled amortization and principal repayments | |||||
Remaining 2,016 | $ 0 | $ 0 | |||
2,017 | 0 | 0 | |||
2,018 | 0 | 0 | |||
2,019 | 0 | 0 | |||
2,020 | 285,000,000 | 285,000,000 | |||
Thereafter | 0 | 0 | |||
Total amortization of debt and principal repayments | 285,000,000 | $ 285,000,000 | |||
Revolving credit facility | Minimum | |||||
Corporate Indebtedness | |||||
Facility fee on total commitments, payable quarterly in arrears (as a percent) | 0.125% | ||||
Revolving credit facility | Maximum | |||||
Corporate Indebtedness | |||||
Facility fee on total commitments, payable quarterly in arrears (as a percent) | 0.30% | ||||
Revolving credit facility | LIBOR | |||||
Corporate Indebtedness | |||||
Interest rate added to base rate (as a percent) | 1.25% | ||||
Revolving credit facility | LIBOR | Minimum | |||||
Corporate Indebtedness | |||||
Interest rate added to base rate (as a percent) | 0.875% | ||||
Revolving credit facility | LIBOR | Maximum | |||||
Corporate Indebtedness | |||||
Interest rate added to base rate (as a percent) | 1.55% | ||||
Term loan | |||||
Corporate Indebtedness | |||||
Maximum borrowing capacity | 933,000,000 | $ 933,000,000 | |||
Carrying value | $ 933,000,000 | $ 933,000,000 | |||
Debt disclosures by scheduled maturity date | |||||
Effective Rate (as a percent) | 1.85% | 1.85% | |||
Scheduled amortization and principal repayments | |||||
Remaining 2,016 | $ 0 | $ 0 | |||
2,017 | 0 | 0 | |||
2,018 | 0 | 0 | |||
2,019 | 933,000,000 | 933,000,000 | |||
2,020 | 0 | 0 | |||
Thereafter | 0 | 0 | |||
Total amortization of debt and principal repayments | 933,000,000 | 933,000,000 | |||
Term loan | Line of Credit | |||||
Corporate Indebtedness | |||||
Carrying value | 930,000,000 | 930,000,000 | 929,500,000 | ||
Scheduled amortization and principal repayments | |||||
Total amortization of debt and principal repayments | 930,000,000 | $ 930,000,000 | 929,500,000 | ||
Term loan | LIBOR | |||||
Corporate Indebtedness | |||||
Interest rate added to base rate (as a percent) | 1.40% | ||||
Term loan | LIBOR | Minimum | |||||
Corporate Indebtedness | |||||
Interest rate added to base rate (as a percent) | 0.95% | ||||
Term loan | LIBOR | Maximum | |||||
Corporate Indebtedness | |||||
Interest rate added to base rate (as a percent) | 1.90% | ||||
Credit Facility 2012 | |||||
Corporate Indebtedness | |||||
Letters of credit | 73,600,000 | $ 73,600,000 | |||
Ability to borrow under line of credit facility | 1,200,000,000 | 1,200,000,000 | |||
Credit Facility 2012 | Line of Credit | |||||
Corporate Indebtedness | |||||
Carrying value | 277,400,000 | 277,400,000 | 985,100,000 | ||
Scheduled amortization and principal repayments | |||||
Total amortization of debt and principal repayments | 277,400,000 | 277,400,000 | 985,100,000 | ||
5.00% senior unsecured notes maturing on August 15, 2018 | Senior Unsecured Notes | |||||
Debt disclosures by scheduled maturity date | |||||
Unpaid Principal Balance | 250,000,000 | 250,000,000 | |||
Accreted Balance | $ 249,845,000 | $ 249,845,000 | 249,810,000 | ||
Coupon Rate (as a percent) | 5.00% | 5.00% | |||
Effective Rate (as a percent) | 5.00% | 5.00% | |||
Term (in Years) | 7 years | ||||
7.75% senior unsecured notes maturing on March 15, 2020 | Senior Unsecured Notes | |||||
Debt disclosures by scheduled maturity date | |||||
Unpaid Principal Balance | $ 250,000,000 | $ 250,000,000 | |||
Accreted Balance | $ 250,000,000 | $ 250,000,000 | 250,000,000 | ||
Coupon Rate (as a percent) | 7.75% | 7.75% | |||
Effective Rate (as a percent) | 7.75% | 7.75% | |||
Term (in Years) | 10 years | ||||
4.50% senior unsecured notes maturing on December 01, 2022 | Senior Unsecured Notes | |||||
Debt disclosures by scheduled maturity date | |||||
Unpaid Principal Balance | $ 200,000,000 | $ 200,000,000 | |||
Accreted Balance | $ 200,000,000 | $ 200,000,000 | 200,000,000 | ||
Coupon Rate (as a percent) | 4.50% | 4.50% | |||
Effective Rate (as a percent) | 4.50% | 4.50% | |||
Term (in Years) | 10 years | ||||
4.27% senior unsecured notes maturing December 17, 2025 | Senior Unsecured Notes | |||||
Debt disclosures by scheduled maturity date | |||||
Unpaid Principal Balance | $ 100,000,000 | $ 100,000,000 | |||
Accreted Balance | $ 100,000,000 | $ 100,000,000 | 100,000,000 | ||
Coupon Rate (as a percent) | 4.27% | 4.27% | |||
Effective Rate (as a percent) | 4.27% | 4.27% | |||
Term (in Years) | 10 years | ||||
Senior unsecured notes repaid in March 2016 | Senior Unsecured Notes | |||||
Debt disclosures by scheduled maturity date | |||||
Unpaid Principal Balance | $ 0 | $ 0 | |||
Accreted Balance | $ 0 | $ 0 | $ 255,296,000 | ||
Exchangeable Senior Notes Due 2017 | Senior Unsecured Notes | |||||
Debt disclosures by scheduled maturity date | |||||
Coupon Rate (as a percent) | 3.00% | 3.00% | |||
Mortgage and Other Loans Payable | |||||
Scheduled Amortization | |||||
Remaining 2,016 | $ 3,566,000 | $ 3,566,000 | |||
2,017 | 7,411,000 | 7,411,000 | |||
2,018 | 7,799,000 | 7,799,000 | |||
2,019 | 8,207,000 | 8,207,000 | |||
2,020 | 8,637,000 | 8,637,000 | |||
Thereafter | 22,786,000 | 22,786,000 | |||
Total amortization of debt | 58,406,000 | 58,406,000 | |||
Principal Repayments | |||||
Remaining 2,016 | 134,259,000 | 134,259,000 | |||
2,017 | 0 | 0 | |||
2,018 | 0 | 0 | |||
2,019 | 0 | 0 | |||
2,020 | 0 | 0 | |||
Thereafter | 441,594,000 | 441,594,000 | |||
Total principal repayments | 575,853,000 | 575,853,000 | |||
Senior Unsecured Notes | |||||
Corporate Indebtedness | |||||
Carrying value | 800,000,000 | 800,000,000 | |||
Scheduled amortization and principal repayments | |||||
Remaining 2,016 | 0 | 0 | |||
2,017 | 0 | 0 | |||
2,018 | 250,000,000 | 250,000,000 | |||
2,019 | 0 | 0 | |||
2,020 | 250,000,000 | 250,000,000 | |||
Thereafter | 300,000,000 | 300,000,000 | |||
Total amortization of debt and principal repayments | $ 800,000,000 | $ 800,000,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Affiliate | ||||
Related Party Transactions | ||||
Profit participation received by related party | $ 0.8 | $ 1.7 | ||
Alliance Building Services | ||||
Related Party Transactions | ||||
Payments made for services | 3.1 | $ 2.1 | 4.8 | $ 4 |
SL Green | ||||
Related Party Transactions | ||||
Allocation of salary and other operating costs from related party | 2.8 | 2.5 | 5.4 | 4.9 |
Insurance expense incurred | $ 1.4 | $ 1.7 | $ 3 | $ 3.3 |
Preferred Units (Details)
Preferred Units (Details) | 6 Months Ended | |||
Jun. 30, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | Aug. 31, 2015shares | Jul. 22, 2015USD ($) | |
Class of Stock [Line Items] | ||||
Number of company common stock issued on conversion of Series B preferred units | 6.71348 | |||
Series A Preferred Units | ||||
Class of Stock [Line Items] | ||||
Fair value of embedded derivative | $ | $ 0 | $ 0 | $ 0 | |
Partnership Interest | Series A Preferred Units | ||||
Class of Stock [Line Items] | ||||
Number of units authorized (in shares) | 109,161 | |||
Dividend rate, preferred units (as a percent) | 3.50% | |||
Liquidation preference of preferred units (in usd per share) | $ / shares | $ 1,000 | |||
Number of units issued (in shares) | 109,161 | |||
Annual dividends on preferred units (in usd per share) | $ / shares | $ 35 | |||
Partnership Interest | Series B Preferred Units | ||||
Class of Stock [Line Items] | ||||
Number of units issued (in shares) | 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value | ||
Fair Value of Financial Instruments | ||
Estimated fair value of debt and preferred equity investments, low end of range | $ 1,400,000 | $ 1,700,000 |
Estimated fair value of debt and preferred equity investments, high end of range | 1,500,000 | 1,800,000 |
Level 3 | Carrying Value | ||
Fair Value of Financial Instruments | ||
Debt and preferred equity investments | 1,357,181 | 1,670,020 |
Fixed rate debt | 1,799,844 | 1,585,106 |
Variable rate debt | 852,259 | 2,150,424 |
Total | 2,652,103 | 3,735,530 |
Level 3 | Fair Value | ||
Fair Value of Financial Instruments | ||
Fixed rate debt | 1,940,517 | 1,663,078 |
Variable rate debt | 855,754 | 2,164,673 |
Total | $ 2,796,271 | $ 3,827,751 |
Financial Instruments_ Deriva50
Financial Instruments: Derivatives and Hedging (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Derivative [Line Items] | |||||
Deferred net losses from terminated hedges | $ 1,800 | $ 2,000 | |||
Estimated current balance held in accumulated other comprehensive loss to be reclassified into earnings within the next 12 months | 400 | ||||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Amount of Loss Recognized in Other Comprehensive Loss (Effective Portion) | $ (1) | $ (27) | (13) | $ (95) | |
Amount of Gain Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | 199 | 250 | 431 | 499 | |
Amount of Gain Recognized into Income (Ineffective Portion) | $ 1 | $ 1 | $ 3 | $ 2 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - Federal Home Loan Bank of New York (FHLBNY) - Secured Debt $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Line of Credit Facility [Line Items] | |
Maximum liability under secured advances | $ 229 |
Costs in conjunction with pledging property as collateral | $ 4.6 |
Commitments and Contingencies52
Commitments and Contingencies (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum initial term of noncancellable operating leases (in years) | 1 year |
Non-cancellable operating leases | |
Remaining 2,016 | $ 10,272 |
2,017 | 20,586 |
2,018 | 20,586 |
2,019 | 20,586 |
2,020 | 20,586 |
Thereafter | 328,088 |
Total minimum lease payments | $ 420,704 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment information | |||||
Number of reportable segments | segment | 2 | ||||
Total revenues | $ 231,758 | $ 234,631 | $ 471,422 | $ 449,299 | |
Income from continuing operations before loss on sale of real estate | 74,920 | 78,390 | 147,120 | 133,319 | |
Total assets | 8,592,788 | 8,592,788 | $ 8,833,317 | ||
Marketing, general and administrative | 265 | 161 | 449 | 264 | |
Operating Segments | Real Estate Segment | |||||
Segment information | |||||
Total revenues | 183,596 | 187,140 | 365,728 | 358,059 | |
Income from continuing operations before loss on sale of real estate | 69,654 | 78,199 | 132,791 | 124,587 | |
Total assets | 6,677,267 | 6,677,267 | 6,892,079 | ||
Operating Segments | Debt and Preferred Equity Segment | |||||
Segment information | |||||
Total revenues | 48,162 | 47,491 | 105,694 | 91,240 | |
Income from continuing operations before loss on sale of real estate | 5,266 | $ 191 | 14,329 | $ 8,732 | |
Total assets | $ 1,915,521 | $ 1,915,521 | $ 1,941,238 |