v3.26.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
ASC 820 defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities as well as certain U.S. Treasury securities that are highly liquid and are actively traded in secondary markets; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non-financial assets and liabilities. Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets.
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of (i) the assets in our deferred compensation plan (for which there is a corresponding liability on our consolidated balance sheets), (ii) loans receivable (for which we have elected the fair value option under ASC Subtopic 825-10, Financial Instruments ("ASC 825-10")), (iii) interest rate swaps and caps, and (iv) mandatorily redeemable instruments (Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units). The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy.
(Amounts in thousands)As of September 30, 2026
TotalLevel 1Level 2Level 3
Deferred compensation plan assets ($26,959 included in restricted cash and $75,585 in other assets)
$102,544 $70,143 $— $32,401 
Interest rate swaps and caps designated as a hedge (included in other assets)44,051 — 44,051 — 
Interest rate caps not designated as a hedge (included in other assets)1,987 — 1,987 — 
Total assets$148,582 $70,143 $46,038 $32,401 
Mandatorily redeemable instruments (included in other liabilities)$49,489 $49,489 $— $— 
Interest rate caps not designated as a hedge (included in other liabilities)1,740 — 1,740 — 
Total liabilities$51,229 $49,489 $1,740 $— 
(Amounts in thousands)As of December 31, 2025
TotalLevel 1Level 2Level 3
Deferred compensation plan assets ($17,590 included in restricted cash and $96,188 in other assets)
$113,778 $73,192 $— $40,586 
Loans receivable (included in other assets)107,166 — — 107,166 
Interest rate swaps and caps designated as a hedge (included in other assets)13,985 — 13,985 — 
Interest rate caps not designated as a hedge (included in other assets)42 — 42 — 
Total assets$234,971 $73,192 $14,027 $147,752 
Mandatorily redeemable instruments (included in other liabilities)$49,465 $49,465 $— $— 
Interest rate swaps designated as a hedge (included in other liabilities)3,093 — 3,093 — 
Total liabilities$52,558 $49,465 $3,093 $— 
15.    Fair Value Measurements - continued
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued
Deferred Compensation Plan Assets
Deferred compensation plan assets that are classified as Level 3 consist of investments in limited partnerships and investment funds, which are managed by third parties. We receive quarterly financial reports that provide net asset values on a fair value basis from a third-party administrator, which are compiled from the quarterly reports provided to them from each limited partnership and investment fund. The period of time over which these underlying assets are expected to be liquidated is unknown. The third-party administrator does not adjust these values in determining our share of the net assets and we do not adjust these values when reported in our consolidated financial statements.
The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3.
(Amounts in thousands)For the Three Months Ended September 30, 2026For the Nine Months Ended September 30, 2026
Beginning balance$36,007 $40,586 
Purchases2,871 7,526 
Sales(999)(8,561)
Realized and unrealized losses(6,477)(9,740)
Other, net999 2,590 
Ending balance$32,401 $32,401 
Loans Receivable
The table below summarizes the changes in fair value of loans receivable that are classified as Level 3.
(Amounts in thousands)For the Three Months Ended September 30, 2026For the Nine Months Ended September 30, 2026
Beginning balance$— $107,166 
Repayments(1)
— 

(107,337)
(1)
Interest accrual— 171 
Ending balance$— $— 
__________________________
(1)In January 2026, we acquired 3 East 54th Street and the outstanding loan balance, including default interest and advances, was credited towards the purchase price. See Note 6 - Acquisitions for further details.
15.    Fair Value Measurements - continued
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued
Derivatives and Hedging
We use derivative instruments principally to reduce our exposure to interest rate increases. We do not enter into or hold derivative instruments for speculative trading purposes. We recognize the fair values of all derivatives in "other assets" or "other liabilities" on our consolidated balance sheets. Changes in the fair value of our cash flow hedges are recognized in other comprehensive income until the hedged item is recognized in earnings. Reported net income and equity may increase or decrease prospectively, depending on future levels of interest rates and other variables affecting the fair values of hedging instruments and hedged items, but will have no effect on cash flows. Cash payments and receipts related to our interest rate hedges are classified as operating activities and included within our disclosure of cash paid for interest on our consolidated statements of cash flows, consistent with the classification of the hedged interest payments.
The following table summarizes our consolidated hedging instruments, all of which hedge variable rate debt, as of September 30, 2026 and December 31, 2025.
(Amounts in thousands)As of September 30, 2026As of December 31, 2025
Notional AmountAll-In Swapped RateSwap/Cap Expiration DateFair Value AssetFair Value AssetFair Value Liability
Interest rate swaps:
555 California Street mortgage loan$840,000 
(1)
5.56%
(2)
05/28$17,365 $— $2,119 
Unsecured term loan750,000 4.12%(3)3,519 3,522 — 
Unsecured revolving credit facility(4)
575,000 3.74%08/278,728 5,208 — 
One Park Avenue mortgage loan500,000 
(5)
4.52%07/276,112 4,189 — 
100 West 33rd Street mortgage loan480,000 5.26%06/273,164 — 736 
1290 Avenue of the Americas mortgage loan200,000 
(6)
4.58%
(7)
09/272,627 1,047 — 
435 Seventh Avenue mortgage loan(8)
— — 238 
Interest rate caps:
Unsecured term loan (effective 10/26)600,000 (3)10/271,271 — — 
Unsecured revolving credit facility (effective 10/26)343,000 (4)10/27728 — — 
Various mortgage loans537 19 — 
$44,051 $13,985 $3,093 
______________________
(1)Represents our 70.0% share of the $1.2 billion mortgage loan.
(2)The variable rate spread will increase by 25 basis points in May 2027.
(3)Our $850,000 unsecured term loan, which matures in February 2031, is hedged by interest rate swaps and an interest rate cap. In October 2026, $500,000 of the swaps expired, and that amount, together with $100,000 previously floating, became subject to a 4.75% SOFR strike rate cap entered into on September 29, 2026, which expires in October 2027. The term loan’s swapped, capped and floating balances are summarized below.
Swapped BalanceAll-In Swapped RateCapped Balance
Floating Balance
(bears interest at S+115)
Through 10/26$750,000 4.12%$— $100,000 
10/26 through 07/27250,000 3.89%600,000 — 
07/27 through 08/2750,000 3.89%600,000 200,000 
08/27 through 10/27— —%600,000 250,000 

(4)Of the $918,000 outstanding under our unsecured revolving credit facility, $575,000 is hedged by the interest rate swap shown above. On September 29, 2026, we entered into a 4.75% SOFR strike rate cap on the remaining $343,000, effective October 2026 and expiring October 2027.
(5)The remaining $25,000 mortgage loan balance bears interest at a floating rate of SOFR plus 1.78% (5.60% as of September 30, 2026) and has a 5.20% SOFR strike rate cap in place until February 2028.
(6)The remaining $750,000 mortgage loan balance bears interest at a floating rate of SOFR plus 1.62% (5.44% as of September 30, 2026) and has a 4.00% SOFR strike rate cap in place until November 2026.
(7)The variable rate spread will increase by 25 basis points in November 2026.
(8)On April 5, 2026, the $75,000 notional interest rate swap expired.
15.    Fair Value Measurements - continued
Fair Value Measurements on a Nonrecurring Basis
There were no assets measured at fair value on a nonrecurring basis on our consolidated balance sheets as of September 30, 2026 and December 31, 2025.
Financial Assets and Liabilities not Measured at Fair Value
Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents (primarily money market funds, which invest in obligations of the United States government) and our secured and unsecured debt. The fair values of these instruments are estimated using discounted cash flow analyses provided by a third-party specialist. For floating rate debt, we use forward rates derived from observable market yield curves to project the expected cash flows we would be required to make under the instrument. The fair value of cash equivalents and borrowings under our unsecured revolving credit facilities and unsecured term loan are classified as Level 1. The fair value of our secured debt and unsecured debt are classified as Level 2. The table below summarizes the carrying amounts and fair value of these financial instruments.
(Amounts in thousands)As of September 30, 2026As of December 31, 2025
Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Cash equivalents$410,668 $411,000 $508,812 $509,000 
Debt:
Mortgages payable$4,869,543 $4,662,000 $4,944,037 $4,754,000 
Senior unsecured notes850,000 781,000 750,000 714,000 
Unsecured term loan850,000 850,000 800,000 800,000 
Unsecured revolving credit facilities918,000 918,000 720,420 720,000 
Total$7,487,543 
(1)
$7,211,000 $7,214,457 
(1)
$6,988,000 
______________________
(1)Excludes $39,231 and $28,829 of deferred financing costs, net and other as of September 30, 2026 and December 31, 2025, respectively.