Fair Value Measurements (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Aggregate the Fair Values of these Financial Assets and Liabilities |
The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy. | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | As of June 30, 2025 | | Total | | Level 1 | | Level 2 | | Level 3 | Deferred compensation plan assets ($12,994 included in restricted cash and $91,771 in other assets) | $ | 104,765 | | | $ | 66,944 | | | $ | — | | | $ | 37,821 | | Loans receivable ($32,984 included in investments in partially owned entities and $57,002 in other assets) | 89,986 | | | — | | | — | | | 89,986 | | | Interest rate swaps and caps designated as a hedge (included in other assets) | 36,115 | | | — | | | 36,115 | | | — | | | Interest rate caps not designated as a hedge (included in other assets) | 134 | | | — | | | 134 | | | — | | | Total assets | $ | 231,000 | | | $ | 66,944 | | | $ | 36,249 | | | $ | 127,807 | | | | | | | | | | | Mandatorily redeemable instruments (included in other liabilities) | $ | 49,610 | | | $ | 49,610 | | | $ | — | | | $ | — | | | Interest rate swaps designated as a hedge (included in other liabilities) | 3,669 | | | — | | | 3,669 | | | — | | | Interest rate caps not designated as a hedge (included in other liabilities) | 134 | | | — | | | 134 | | | — | | | Total liabilities | $ | 53,413 | | | $ | 49,610 | | | $ | 3,803 | | | $ | — | | | | | | | | | | | (Amounts in thousands) | As of December 31, 2024 | | Total | | Level 1 | | Level 2 | | Level 3 | Deferred compensation plan assets ($8,958 included in restricted cash and $105,622 in other assets) | $ | 114,580 | | | $ | 70,025 | | | $ | — | | | $ | 44,555 | | Loans receivable ($32,984 included in investments in partially owned entities and $52,335 in other assets) | 85,319 | | | — | | | — | | | 85,319 | | | Interest rate swaps and caps designated as a hedge (included in other assets) | 88,982 | | | — | | | 88,982 | | | — | | | Interest rate caps not designated as a hedge (included in other assets) | 1,040 | | | — | | | 1,040 | | | — | | | Total assets | $ | 289,921 | | | $ | 70,025 | | | $ | 90,022 | | | $ | 129,874 | | | | | | | | | | | Mandatorily redeemable instruments (included in other liabilities) | $ | 49,684 | | | $ | 49,684 | | | $ | — | | | $ | — | | | Interest rate swaps designated as a hedge (included in other liabilities) | 1,023 | | | — | | | 1,023 | | | — | | | Interest rate caps not designated as a hedge (included in other liabilities) | 1,040 | | | — | | | 1,040 | | | — | | | Total liabilities | $ | 51,747 | | | $ | 49,684 | | | $ | 2,063 | | | $ | — | |
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| Schedule of Changes in Fair Value of Deferred Compensation Plan Assets |
The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3. | | | | | | | | | | | | | (Amounts in thousands) | For the Three Months Ended June 30, 2025 | | For the Six Months Ended June 30, 2025 | | | | | | Beginning balance | $ | 44,099 | | | $ | 44,555 | | | Purchases | 496 | | | 496 | | | Sales | (5,277) | | | (6,001) | | | Realized and unrealized losses | (2,394) | | | (2,850) | | | Other, net | 897 | | | 1,621 | | | Ending balance | $ | 37,821 | | | $ | 37,821 | |
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| Schedule of Changes In Fair Value of Loans Receivable |
The table below summarizes the changes in fair value of loans receivable that are classified as Level 3. | | | | | | | | | | | | | (Amounts in thousands) | For the Three Months Ended June 30, 2025 | | For the Six Months Ended June 30, 2025 | | | | | | Beginning balance | $ | 87,692 | | | $ | 85,319 | | | Funding | 1,124 | | | 2,341 | | | Interest accrual | 1,170 | | | 2,326 | | | | | | | | | | Ending balance(1) | $ | 89,986 | | | $ | 89,986 | |
____________________(1)The fair value for $32,984 of the balance was determined by using a discounted cash flow model and Level 3 inputs, which include a terminal capitalization rate of 5.5% and a discount rate of 8.0% as of June 30, 2025. The terminal capitalization rate and discount rate disclosed reflect both the range and the weighted average. The fair value for the remaining balance at June 30, 2025 was based on comparable sales data.
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| Schedule of Derivative Assets at Fair Value |
The following table summarizes our consolidated hedging instruments, all of which hedge variable rate debt, as of June 30, 2025 and December 31, 2024. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | | As of June 30, 2025 | | As of December 31, 2024 | | | Notional Amount | | All-In Swapped Rate | | Swap/Cap Expiration Date | | Fair Value Asset | | Fair Value Liability | | Fair Value Asset | | Fair Value Liability | | Interest rate swaps: | | | | | | | | | | | | | | | | 555 California Street mortgage loan: | | | | | | | | | | | | | | | | In-place swap | | $ | 840,000 | | (1) | 6.03% | | 05/26 | | $ | — | | | $ | 862 | | | $ | 765 | | | $ | — | | | Forward swap (effective 05/26) | | 840,000 | | | 5.56% | (2) | 05/28 | | — | | | 2,272 | | | — | | | — | | Unsecured term loan(3) | | 800,000 | | | 4.40% | | (4) | | 5,958 | | | — | | | 13,494 | | | — | | | Unsecured revolving credit facility | | 575,000 | | | 3.84% | | 08/27 | | 8,278 | | | — | | | 18,510 | | | — | | One Park Avenue mortgage loan(3)(5) | | 500,000 | | | 3.95% | | 07/27 | | 6,886 | | | — | | | 15,243 | | | — | | PENN 11 mortgage loan(6) | | 500,000 | | | 6.28% | | 10/25 | | 88 | | | 6 | | | 17 | | | 282 | | | 100 West 33rd Street mortgage loan | | 480,000 | | | 5.26% | | 06/27 | | 423 | | | — | | | 6,808 | | | — | | | 888 Seventh Avenue mortgage loan | | 200,000 | | (7) | 4.76% | | 09/27 | | 1,890 | | | — | | | 5,249 | | | — | | 4 Union Square South mortgage loan(3) | | 100,000 | | (8) | 4.37% | | 07/27 | | 1,110 | | | — | | | 2,735 | | | — | | | 435 Seventh Avenue mortgage loan | | 75,000 | | | 6.96% | | 04/26 | | — | | | 529 | | | — | | | 741 | | | Interest rate caps: | | | | | | | | | | | | | | | | 1290 Avenue of the Americas mortgage loan | | 950,000 | | | (9) | | 11/25 | | 11,469 | | | — | | | 25,673 | | | — | | | Various mortgage loans | | | | | | | | 13 | | | — | | | 488 | | | — | | | | | | | | | | $ | 36,115 | | | $ | 3,669 | | | $ | 88,982 | | | $ | 1,023 | |
____________________ (1)Represents our 70.0% share of the $1.2 billion mortgage loan. In June 2025, we entered into the forward swap arrangement detailed above. (2)Reflects the May 2026 increase in variable rate spread to S+230. The variable rate spread will further increase to S+255 in May 2027. (3)Upon the repayment of the 770 Broadway mortgage loan (see Note 6 - 770 Broadway), the $700,000 corporate-level interest rate swap was reallocated and now hedges $500,000 of the One Park Avenue mortgage loan, $100,000 of the unsecured term loan and $100,000 of the 4 Union Square South mortgage loan. The December 31, 2024 fair value is presented based on the current period reallocation. (4)Represents the aggregate fair value of various interest rate swap arrangements to hedge interest payments on our unsecured term loan, which matures in December 2027. The impact of these interest rate swap arrangements is detailed below: | | | | | | | | | | | | | | | | | | | | | | | Swapped Balance | | All-In Swapped Rate | | Unswapped Balance (bears interest at S+125) | | Through 07/25 | | $ | 800,000 | | | 4.40% | | $ | — | | | 07/25 through 10/26 | | 650,000 | | | 4.24% | | 150,000 | | | 10/26 through 07/27 | | 150,000 | | | 3.90% | | 650,000 | | | 07/27 through 08/27 | | 50,000 | | | 3.99% | | 750,000 | |
(5)The remaining $25,000 mortgage loan balance bears interest at a floating rate of SOFR plus 1.22% (5.53% as of June 30, 2025) and has a 4.39% SOFR strike rate cap in place. (6)On July 16, 2025, we completed a $450,000 refinancing of PENN 11, extending the maturity date to August 2030 (See Note 20 - Subsequent Events). (7)The remaining $49,824 mortgage loan balance bears interest at a floating rate of SOFR plus 1.80% (6.12% as of June 30, 2025). (8)The remaining $20,000 mortgage loan balance bears interest at a floating rate of SOFR plus 1.50% (5.82% as of June 30, 2025). (9)SOFR cap strike rate of 1.00%.
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| Schedule of Derivative Liabilities at Fair Value |
The following table summarizes our consolidated hedging instruments, all of which hedge variable rate debt, as of June 30, 2025 and December 31, 2024. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | | As of June 30, 2025 | | As of December 31, 2024 | | | Notional Amount | | All-In Swapped Rate | | Swap/Cap Expiration Date | | Fair Value Asset | | Fair Value Liability | | Fair Value Asset | | Fair Value Liability | | Interest rate swaps: | | | | | | | | | | | | | | | | 555 California Street mortgage loan: | | | | | | | | | | | | | | | | In-place swap | | $ | 840,000 | | (1) | 6.03% | | 05/26 | | $ | — | | | $ | 862 | | | $ | 765 | | | $ | — | | | Forward swap (effective 05/26) | | 840,000 | | | 5.56% | (2) | 05/28 | | — | | | 2,272 | | | — | | | — | | Unsecured term loan(3) | | 800,000 | | | 4.40% | | (4) | | 5,958 | | | — | | | 13,494 | | | — | | | Unsecured revolving credit facility | | 575,000 | | | 3.84% | | 08/27 | | 8,278 | | | — | | | 18,510 | | | — | | One Park Avenue mortgage loan(3)(5) | | 500,000 | | | 3.95% | | 07/27 | | 6,886 | | | — | | | 15,243 | | | — | | PENN 11 mortgage loan(6) | | 500,000 | | | 6.28% | | 10/25 | | 88 | | | 6 | | | 17 | | | 282 | | | 100 West 33rd Street mortgage loan | | 480,000 | | | 5.26% | | 06/27 | | 423 | | | — | | | 6,808 | | | — | | | 888 Seventh Avenue mortgage loan | | 200,000 | | (7) | 4.76% | | 09/27 | | 1,890 | | | — | | | 5,249 | | | — | | 4 Union Square South mortgage loan(3) | | 100,000 | | (8) | 4.37% | | 07/27 | | 1,110 | | | — | | | 2,735 | | | — | | | 435 Seventh Avenue mortgage loan | | 75,000 | | | 6.96% | | 04/26 | | — | | | 529 | | | — | | | 741 | | | Interest rate caps: | | | | | | | | | | | | | | | | 1290 Avenue of the Americas mortgage loan | | 950,000 | | | (9) | | 11/25 | | 11,469 | | | — | | | 25,673 | | | — | | | Various mortgage loans | | | | | | | | 13 | | | — | | | 488 | | | — | | | | | | | | | | $ | 36,115 | | | $ | 3,669 | | | $ | 88,982 | | | $ | 1,023 | |
____________________ (1)Represents our 70.0% share of the $1.2 billion mortgage loan. In June 2025, we entered into the forward swap arrangement detailed above. (2)Reflects the May 2026 increase in variable rate spread to S+230. The variable rate spread will further increase to S+255 in May 2027. (3)Upon the repayment of the 770 Broadway mortgage loan (see Note 6 - 770 Broadway), the $700,000 corporate-level interest rate swap was reallocated and now hedges $500,000 of the One Park Avenue mortgage loan, $100,000 of the unsecured term loan and $100,000 of the 4 Union Square South mortgage loan. The December 31, 2024 fair value is presented based on the current period reallocation. (4)Represents the aggregate fair value of various interest rate swap arrangements to hedge interest payments on our unsecured term loan, which matures in December 2027. The impact of these interest rate swap arrangements is detailed below: | | | | | | | | | | | | | | | | | | | | | | | Swapped Balance | | All-In Swapped Rate | | Unswapped Balance (bears interest at S+125) | | Through 07/25 | | $ | 800,000 | | | 4.40% | | $ | — | | | 07/25 through 10/26 | | 650,000 | | | 4.24% | | 150,000 | | | 10/26 through 07/27 | | 150,000 | | | 3.90% | | 650,000 | | | 07/27 through 08/27 | | 50,000 | | | 3.99% | | 750,000 | |
(5)The remaining $25,000 mortgage loan balance bears interest at a floating rate of SOFR plus 1.22% (5.53% as of June 30, 2025) and has a 4.39% SOFR strike rate cap in place. (6)On July 16, 2025, we completed a $450,000 refinancing of PENN 11, extending the maturity date to August 2030 (See Note 20 - Subsequent Events). (7)The remaining $49,824 mortgage loan balance bears interest at a floating rate of SOFR plus 1.80% (6.12% as of June 30, 2025). (8)The remaining $20,000 mortgage loan balance bears interest at a floating rate of SOFR plus 1.50% (5.82% as of June 30, 2025). (9)SOFR cap strike rate of 1.00%.
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| Schedule of Carrying Amounts and Fair Values of Financial Instruments |
The table below summarizes the carrying amounts and fair value of these financial instruments. | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | As of June 30, 2025 | | As of December 31, 2024 | | Carrying
Amount | | Fair
Value | | Carrying
Amount | | Fair
Value | | Cash equivalents | $ | 992,520 | | | $ | 993,000 | | | $ | 639,366 | | | $ | 639,000 | | | Debt: | | | | | | | | | Mortgages payable | $ | 4,998,943 | | | $ | 4,812,000 | | | $ | 5,707,176 | | | $ | 5,486,000 | | | Senior unsecured notes | 750,000 | | | 701,000 | | | 1,200,000 | | | 1,129,000 | | | Unsecured term loan | 800,000 | | | 800,000 | | | 800,000 | | | 800,000 | | | Unsecured revolving credit facilities | 575,000 | | | 575,000 | | | 575,000 | | | 575,000 | | | Total | $ | 7,123,943 | | (1) | $ | 6,888,000 | | | $ | 8,282,176 | | (1) | $ | 7,990,000 | |
____________________ (1)Excludes $28,186 and $39,300 of deferred financing costs, net and other as of June 30, 2025 and December 31, 2024, respectively.
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