Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2018shares | |
Document and Entity Information | |
Entity Registrant Name | VORNADO REALTY TRUST |
Entity Central Index Key | 899,689 |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 190,285,799 |
Entity Trading Symbol | vno |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Vornado Realty L.P. | |
Document and Entity Information | |
Entity Registrant Name | VORNADO REALTY LP |
Entity Central Index Key | 1,040,765 |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 0 |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Real estate, at cost: | ||
Land | $ 3,306,264 | $ 3,143,648 |
Buildings and improvements | 10,083,313 | 9,898,605 |
Development costs and construction in progress | 1,579,628 | 1,615,101 |
Leasehold improvements and equipment | 106,945 | 98,941 |
Total | 15,076,150 | 14,756,295 |
Less accumulated depreciation and amortization | (3,109,361) | (2,885,283) |
Real estate, net | 11,966,789 | 11,871,012 |
Cash and cash equivalents | 772,524 | 1,817,655 |
Restricted cash | 147,286 | 97,157 |
Marketable securities | 157,951 | 182,752 |
Tenant and other receivables, net of allowance for doubtful accounts of $3,935 and $5,526 | 69,796 | 58,700 |
Investments in partially owned entities | 909,440 | 1,056,829 |
Real estate fund investments | 369,767 | 354,804 |
220 Central Park South condominium units ready for sale | 307,552 | 0 |
Receivable arising from the straight-lining of rents, net of allowance of $1,705 and $954 | 937,294 | 926,711 |
Deferred leasing costs, net of accumulated amortization of $202,480 and $191,827 | 443,350 | 403,492 |
Identified intangible assets, net of accumulated amortization of $167,861 and $150,837 | 139,994 | 159,260 |
Assets related to discontinued operations | 74 | 1,357 |
Other assets | 456,203 | 468,205 |
Assets | 16,678,020 | 17,397,934 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Mortgages payable, net | 8,119,075 | 8,137,139 |
Senior unsecured notes, net | 843,710 | 843,614 |
Unsecured term loan, net | 749,874 | 748,734 |
Unsecured revolving credit facilities | 80,000 | 0 |
Accounts payable and accrued expenses | 415,531 | 415,794 |
Deferred revenue | 176,211 | 227,069 |
Deferred compensation plan | 102,281 | 109,177 |
Liabilities related to discontinued operations | 205 | 3,620 |
Preferred shares/units redeemed on January 4 and 11, 2018 | 0 | 455,514 |
Other liabilities | 229,042 | 464,635 |
Total liabilities | 10,715,929 | 11,405,296 |
Commitments and contingencies | ||
Redeemable noncontrolling interests / partnership units | ||
Class A units - 12,591,157 and 12,528,899 units outstanding | 919,154 | 979,509 |
Series D cumulative redeemable preferred units - 177,101 units outstanding | 5,428 | 5,428 |
Total redeemable noncontrolling interests / partnership units | 924,582 | 984,937 |
Vornado's shareholders' equity: | ||
Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 36,798,580 and 36,799,573 shares | 891,294 | 891,988 |
Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 190,285,799 and 189,983,858 shares | 7,589 | 7,577 |
Additional capital | 7,580,463 | 7,492,658 |
Earnings less than distributions | (4,135,602) | (4,183,253) |
Accumulated other comprehensive income | 34,173 | 128,682 |
Total Vornado shareholders' equity | 4,377,917 | 4,337,652 |
Noncontrolling interests in consolidated subsidiaries | 659,592 | 670,049 |
Total equity | 5,037,509 | 5,007,701 |
Total liabilities, redeemable noncontrolling interests / partnership units and equity | 16,678,020 | 17,397,934 |
Vornado Realty L.P. | ||
Real estate, at cost: | ||
Land | 3,306,264 | 3,143,648 |
Buildings and improvements | 10,083,313 | 9,898,605 |
Development costs and construction in progress | 1,579,628 | 1,615,101 |
Leasehold improvements and equipment | 106,945 | 98,941 |
Total | 15,076,150 | 14,756,295 |
Less accumulated depreciation and amortization | (3,109,361) | (2,885,283) |
Real estate, net | 11,966,789 | 11,871,012 |
Cash and cash equivalents | 772,524 | 1,817,655 |
Restricted cash | 147,286 | 97,157 |
Marketable securities | 157,951 | 182,752 |
Tenant and other receivables, net of allowance for doubtful accounts of $3,935 and $5,526 | 69,796 | 58,700 |
Investments in partially owned entities | 909,440 | 1,056,829 |
Real estate fund investments | 369,767 | 354,804 |
220 Central Park South condominium units ready for sale | 307,552 | 0 |
Receivable arising from the straight-lining of rents, net of allowance of $1,705 and $954 | 937,294 | 926,711 |
Deferred leasing costs, net of accumulated amortization of $202,480 and $191,827 | 443,350 | 403,492 |
Identified intangible assets, net of accumulated amortization of $167,861 and $150,837 | 139,994 | 159,260 |
Assets related to discontinued operations | 74 | 1,357 |
Other assets | 456,203 | 468,205 |
Assets | 16,678,020 | 17,397,934 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Mortgages payable, net | 8,119,075 | 8,137,139 |
Senior unsecured notes, net | 843,710 | 843,614 |
Unsecured term loan, net | 749,874 | 748,734 |
Unsecured revolving credit facilities | 80,000 | 0 |
Accounts payable and accrued expenses | 415,531 | 415,794 |
Deferred revenue | 176,211 | 227,069 |
Deferred compensation plan | 102,281 | 109,177 |
Liabilities related to discontinued operations | 205 | 3,620 |
Preferred shares/units redeemed on January 4 and 11, 2018 | 0 | 455,514 |
Other liabilities | 229,042 | 464,635 |
Total liabilities | 10,715,929 | 11,405,296 |
Commitments and contingencies | ||
Redeemable noncontrolling interests / partnership units | ||
Class A units - 12,591,157 and 12,528,899 units outstanding | 919,154 | 979,509 |
Series D cumulative redeemable preferred units - 177,101 units outstanding | 5,428 | 5,428 |
Total redeemable noncontrolling interests / partnership units | 924,582 | 984,937 |
Vornado's shareholders' equity: | ||
Partners' capital | 8,479,346 | 8,392,223 |
Earnings less than distributions | (4,135,602) | (4,183,253) |
Accumulated other comprehensive income | 34,173 | 128,682 |
Total Vornado shareholders' equity | 4,377,917 | 4,337,652 |
Noncontrolling interests in consolidated subsidiaries | 659,592 | 670,049 |
Total equity | 5,037,509 | 5,007,701 |
Total liabilities, redeemable noncontrolling interests / partnership units and equity | $ 16,678,020 | $ 17,397,934 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Tenant and other receivables, allowance for doubtful accounts | $ 3,935 | $ 5,526 |
Receivable arising from the straight-lining of rents, allowance | 1,705 | 954 |
Deferred leasing costs, accumulated amortization | 202,480 | 191,827 |
Identified intangible assets, accumulated amortization | $ 167,861 | $ 150,837 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Preferred shares of beneficial interest: par value per share (in dollars per share) | $ 0 | $ 0 |
Preferred shares of beneficial interest: authorized shares | 110,000,000 | 110,000,000 |
Preferred shares of beneficial interest: issued shares | 36,798,580 | 36,799,573 |
Preferred shares of beneficial interest: outstanding shares | 36,798,580 | 36,799,573 |
Common shares of beneficial interest: par value per share (in dollars per share) | $ 0.04 | $ 0.04 |
Common shares of beneficial interest: authorized shares | 250,000,000 | 250,000,000 |
Common shares of beneficial interest: issued shares | 190,285,799 | 189,983,858 |
Common shares of beneficial interest: outstanding shares | 190,285,799 | 189,983,858 |
Class A Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Outstanding Partnership Units held by Third Parties | 12,591,157 | 12,528,899 |
Cumulative Redeemable Preferred Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Outstanding Partnership Units held by Third Parties | 177,101 | 177,101 |
Vornado Realty L.P. | ||
ASSETS | ||
Tenant and other receivables, allowance for doubtful accounts | $ 3,935 | $ 5,526 |
Receivable arising from the straight-lining of rents, allowance | 1,705 | 954 |
Deferred leasing costs, accumulated amortization | 202,480 | 191,827 |
Identified intangible assets, accumulated amortization | $ 167,861 | $ 150,837 |
Vornado Realty L.P. | Class A Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Outstanding Partnership Units held by Third Parties | 12,591,157 | 12,528,899 |
Vornado Realty L.P. | Cumulative Redeemable Preferred Unit | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS / PARTNERSHIP UNITS AND EQUITY | ||
Outstanding Partnership Units held by Third Parties | 177,101 | 177,101 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
REVENUES: | ||||
Property rentals | $ 437,560 | $ 432,062 | $ 1,322,265 | $ 1,275,597 |
Tenant expense reimbursements | 66,387 | 63,401 | 185,009 | 174,091 |
Fee and other income | 38,101 | 33,292 | 113,029 | 98,212 |
EXPENSES: | ||||
Operating | 235,575 | 225,226 | 709,158 | 661,585 |
Depreciation and amortization | 113,169 | 104,972 | 333,701 | 315,223 |
General and administrative | 31,977 | 34,286 | 108,937 | 115,866 |
Expense from deferred compensation plan liability | 1,861 | 1,975 | 3,534 | 5,233 |
Transaction related costs and other | 2,510 | 61 | 16,683 | 1,073 |
Total expenses | 385,092 | 366,520 | 1,172,013 | 1,098,980 |
Operating income | 156,956 | 162,235 | 448,290 | 448,920 |
Income (loss) from partially owned entities | 7,206 | (41,801) | 6,059 | 5,578 |
Loss from real estate fund investments | (190) | (6,308) | (37,973) | (1,649) |
Interest and other investment income, net | 2,893 | 7,331 | 9,401 | 22,567 |
Income from deferred compensation plan assets | 1,861 | 1,975 | 3,534 | 5,233 |
Interest and debt expense | (88,951) | (85,068) | (264,774) | (252,581) |
Net gains on disposition of wholly owned and partially owned assets | 141,269 | 0 | 164,828 | 501 |
Income before income taxes | 221,044 | 38,364 | 329,365 | 228,569 |
Income tax expense | (1,943) | (1,188) | (4,964) | (3,491) |
Income from continuing operations | 219,101 | 37,176 | 324,401 | 225,078 |
Income (loss) from discontinued operations | 61 | (47,930) | 381 | (14,501) |
Net income (loss) | 219,162 | (10,754) | 324,782 | 210,577 |
Less net (income) loss attributable to noncontrolling interests in Consolidated subsidiaries | (3,312) | (4,022) | 31,137 | (18,436) |
Operating Partnership | (12,671) | 1,878 | (18,992) | (9,057) |
Net income (loss) attributable to Vornado / Vornado Realty L.P. | 203,179 | (12,898) | 336,927 | 183,084 |
Preferred share dividends / unit distributions | (12,534) | (16,128) | (38,103) | (48,386) |
Preferred share / unit issuance costs | 0 | 0 | (14,486) | 0 |
NET INCOME (LOSS) attributable to common shareholders / Class A unitholders | $ 190,645 | $ (29,026) | $ 284,338 | $ 134,698 |
INCOME (LOSS) PER COMMON SHARE – BASIC: | ||||
Income from continuing operations, net (in dollars per share) | $ 1 | $ 0.09 | $ 1.50 | $ 0.78 |
Loss from discontinued operations, net (in dollars per share) | 0 | (0.24) | 0 | (0.07) |
Net income (loss) per common share (in dollars per share) | $ 1 | $ (0.15) | $ 1.50 | $ 0.71 |
Weighted average shares outstanding, basic | 190,245 | 189,593 | 190,176 | 189,401 |
INCOME (LOSS) PER COMMON SHARE – DILUTED: | ||||
Income from continuing operations, net (in dollars per share) | $ 1 | $ 0.09 | $ 1.49 | $ 0.78 |
Loss from discontinued operations, net (in dollars per share) | 0 | (0.24) | 0 | (0.07) |
Net income (loss) per common share (in dollars per share) | $ 1 | $ (0.15) | $ 1.49 | $ 0.71 |
Weighted average shares outstanding, diluted | 191,327 | 190,847 | 191,292 | 191,257 |
INCOME (LOSS) PER CLASS A UNIT – DILUTED: | ||||
DIVIDENDS PER COMMON SHARE (in dollars per share) | $ 0.63 | $ 0.60 | $ 1.89 | $ 2.02 |
Vornado Realty L.P. | ||||
REVENUES: | ||||
Property rentals | $ 437,560 | $ 432,062 | $ 1,322,265 | $ 1,275,597 |
Tenant expense reimbursements | 66,387 | 63,401 | 185,009 | 174,091 |
Fee and other income | 38,101 | 33,292 | 113,029 | 98,212 |
EXPENSES: | ||||
Operating | 235,575 | 225,226 | 709,158 | 661,585 |
Depreciation and amortization | 113,169 | 104,972 | 333,701 | 315,223 |
General and administrative | 31,977 | 34,286 | 108,937 | 115,866 |
Expense from deferred compensation plan liability | 1,861 | 1,975 | 3,534 | 5,233 |
Transaction related costs and other | 2,510 | 61 | 16,683 | 1,073 |
Total expenses | 385,092 | 366,520 | 1,172,013 | 1,098,980 |
Operating income | 156,956 | 162,235 | 448,290 | 448,920 |
Income (loss) from partially owned entities | 7,206 | (41,801) | 6,059 | 5,578 |
Loss from real estate fund investments | (190) | (6,308) | (37,973) | (1,649) |
Interest and other investment income, net | 2,893 | 7,331 | 9,401 | 22,567 |
Income from deferred compensation plan assets | 1,861 | 1,975 | 3,534 | 5,233 |
Interest and debt expense | (88,951) | (85,068) | (264,774) | (252,581) |
Net gains on disposition of wholly owned and partially owned assets | 141,269 | 0 | 164,828 | 501 |
Income before income taxes | 221,044 | 38,364 | 329,365 | 228,569 |
Income tax expense | (1,943) | (1,188) | (4,964) | (3,491) |
Income from continuing operations | 219,101 | 37,176 | 324,401 | 225,078 |
Income (loss) from discontinued operations | 61 | (47,930) | 381 | (14,501) |
Net income (loss) | 219,162 | (10,754) | 324,782 | 210,577 |
Less net (income) loss attributable to noncontrolling interests in Consolidated subsidiaries | (3,312) | (4,022) | 31,137 | (18,436) |
Operating Partnership | (18,992) | (9,057) | ||
Net income (loss) attributable to Vornado / Vornado Realty L.P. | 215,850 | (14,776) | 355,919 | 192,141 |
Preferred share dividends / unit distributions | (12,582) | (16,176) | (38,248) | (48,531) |
Preferred share / unit issuance costs | 0 | 0 | (14,486) | 0 |
NET INCOME (LOSS) attributable to common shareholders / Class A unitholders | $ 203,268 | $ (30,952) | $ 303,185 | $ 143,610 |
INCOME (LOSS) PER CLASS A UNIT – BASIC: | ||||
Income from continuing operations, net (in dollars per unit) | $ 1 | $ 0.08 | $ 1.49 | $ 0.77 |
Loss from discontinued operations, net (in dollars per unit) | 0 | (0.24) | 0 | (0.07) |
Net income (loss) per Class A unit (in dollars per unit) | $ 1 | $ (0.16) | $ 1.49 | $ 0.70 |
Weighted average units outstanding, basic (in shares) | 202,103 | 201,300 | 202,033 | 201,093 |
INCOME (LOSS) PER CLASS A UNIT – DILUTED: | ||||
Income from continuing operations, net (in dollars per unit) | $ 0.99 | $ 0.08 | $ 1.48 | $ 0.76 |
Loss from discontinued operations, net (in dollars per unit) | 0 | (0.24) | 0 | (0.07) |
Net income (loss) per Class A unit (in dollars per unit) | $ 0.99 | $ (0.16) | $ 1.48 | $ 0.69 |
Weighted average units outstanding, diluted (in shares) | 203,594 | 203,113 | 203,400 | 203,311 |
DISTRIBUTIONS PER CLASS A UNIT (in dollars per share) | $ 0.63 | $ 0.60 | $ 1.89 | $ 2.02 |
Real Estate | ||||
REVENUES: | ||||
Total revenues | $ 542,048 | $ 528,755 | $ 1,620,303 | $ 1,547,900 |
Real Estate | Vornado Realty L.P. | ||||
REVENUES: | ||||
Total revenues | $ 542,048 | $ 528,755 | $ 1,620,303 | $ 1,547,900 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income (loss) | $ 219,162 | $ (10,754) | $ 324,782 | $ 210,577 |
Other comprehensive income (loss): | ||||
Pro rata share of other comprehensive income (loss) of nonconsolidated subsidiaries | 253 | (626) | 989 | (1,657) |
Increase (reduction) in unrealized net gain on available-for-sale securities | 0 | 5,656 | 0 | (10,559) |
Pro rata share of amounts reclassified from accumulated other comprehensive (loss) income of a nonconsolidated subsidiary | 0 | (646) | 0 | 8,622 |
Increase in value of interest rate swaps and other | 623 | 1,973 | 13,789 | 6,611 |
Comprehensive income (loss) | 220,038 | (4,397) | 339,560 | 213,594 |
Less comprehensive (income) loss attributable to noncontrolling interests | (16,037) | (2,539) | 11,232 | (27,681) |
Comprehensive income (loss) attributable to Vornado / Vornado Realty L.P. | 204,001 | (6,936) | 350,792 | 185,913 |
Vornado Realty L.P. | ||||
Net income (loss) | 219,162 | (10,754) | 324,782 | 210,577 |
Other comprehensive income (loss): | ||||
Pro rata share of other comprehensive income (loss) of nonconsolidated subsidiaries | 253 | (626) | 989 | (1,657) |
Increase (reduction) in unrealized net gain on available-for-sale securities | 0 | 5,656 | 0 | (10,559) |
Pro rata share of amounts reclassified from accumulated other comprehensive (loss) income of a nonconsolidated subsidiary | 0 | (646) | 0 | 8,622 |
Increase in value of interest rate swaps and other | 623 | 1,973 | 13,789 | 6,611 |
Comprehensive income (loss) | 220,038 | (4,397) | 339,560 | 213,594 |
Less comprehensive (income) loss attributable to noncontrolling interests | (3,312) | (4,022) | 31,137 | (18,436) |
Comprehensive income (loss) attributable to Vornado / Vornado Realty L.P. | $ 216,726 | $ (8,419) | $ 370,697 | $ 195,158 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | JBGS | Real estate fund investments | Other | Preferred Units | Common Shares | Additional Capital | Earnings Less Than Distributions | Earnings Less Than DistributionsJBGS | Accumulated Other Comprehensive Income | Non- controlling Interests in Consolidated Subsidiaries | Non- controlling Interests in Consolidated SubsidiariesReal estate fund investments | Non- controlling Interests in Consolidated SubsidiariesOther | Vornado Realty L.P. | Vornado Realty L.P.JBGS | Vornado Realty L.P.Real estate fund investments | Vornado Realty L.P.Other | Vornado Realty L.P.Preferred Units | Vornado Realty L.P.Class A Units Owned by Vornado | Vornado Realty L.P.Earnings Less Than Distributions | Vornado Realty L.P.Earnings Less Than DistributionsJBGS | Vornado Realty L.P.Accumulated Other Comprehensive Income | Vornado Realty L.P.Non- controlling Interests in Consolidated Subsidiaries | Vornado Realty L.P.Non- controlling Interests in Consolidated SubsidiariesReal estate fund investments | Vornado Realty L.P.Non- controlling Interests in Consolidated SubsidiariesOther | Series G & I Preferred Stock | Series G & I Preferred StockVornado Realty L.P. | Series G & I Preferred StockVornado Realty L.P.Earnings Less Than Distributions |
Beginning balance, shares at Dec. 31, 2016 | 42,825 | 189,101 | 42,825 | 189,101 | ||||||||||||||||||||||||
Beginning balance, value at Dec. 31, 2016 | $ 7,618,496 | $ 1,038,055 | $ 7,542 | $ 7,153,332 | $ (1,419,382) | $ 118,972 | $ 719,977 | $ 7,618,496 | $ 1,038,055 | $ 7,160,874 | $ (1,419,382) | $ 118,972 | $ 719,977 | |||||||||||||||
Net income (loss) attributable to Vornado / Vornado Realty L.P. | 183,084 | 183,084 | 192,141 | 192,141 | ||||||||||||||||||||||||
Net income attributable to redeemable partnership units | (9,057) | (9,057) | (9,057) | |||||||||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated subsidiaries | 18,436 | $ 9,684 | 18,436 | 18,436 | 18,436 | |||||||||||||||||||||||
Dividends on common shares | (382,552) | (382,552) | ||||||||||||||||||||||||||
Distributions to Vornado | (382,552) | (382,552) | ||||||||||||||||||||||||||
Dividends on preferred shares / Distributions to preferred unitholders | (48,386) | (48,386) | (48,386) | (48,386) | ||||||||||||||||||||||||
Common shares issued: / Class A Units issued to Vornado | ||||||||||||||||||||||||||||
Upon redemption of Class A units, at redemption value, shares | 349 | 349 | ||||||||||||||||||||||||||
Upon redemption of Class A units, at redemption value, value | 34,564 | $ 14 | 34,550 | 34,564 | $ 34,564 | |||||||||||||||||||||||
Under Vornado's employees' share option plan, shares | 409 | 409 | ||||||||||||||||||||||||||
Under Vornado's employees' share option plan, value | 23,892 | $ 15 | 23,877 | 23,892 | $ 23,892 | |||||||||||||||||||||||
Under Vornado's dividend reinvestment plan, shares | 12 | 12 | ||||||||||||||||||||||||||
Under Vornado's dividend reinvestment plan, value | 1,119 | $ 0 | 1,119 | 1,119 | $ 1,119 | |||||||||||||||||||||||
Contributions: | ||||||||||||||||||||||||||||
Contributions | 1,044 | 1,044 | 1,044 | 1,044 | ||||||||||||||||||||||||
Distributions: | ||||||||||||||||||||||||||||
Distributions | (25,663) | $ (2,430,427) | (20,851) | $ (1,815) | $ (2,430,427) | $ (20,851) | $ (1,815) | $ (2,430,427) | $ (20,851) | $ (1,815) | $ (2,430,427) | $ (20,851) | $ (1,815) | |||||||||||||||
Conversion of Series A preferred shares to common shares / Conversion of Series A preferred units to Class A units, shares | (2) | 2 | (2) | 2 | ||||||||||||||||||||||||
Conversion of Series A preferred shares to common shares / Conversion of Series A preferred units to Class A units, value | 0 | $ (44) | $ 0 | 44 | 0 | $ (44) | $ 44 | |||||||||||||||||||||
Deferred compensation shares and options, shares | 1 | 1 | ||||||||||||||||||||||||||
Deferred compensation shares and options, value | 1,557 | $ 0 | 1,975 | (418) | 1,557 | $ 1,975 | (418) | |||||||||||||||||||||
Reduction in unrealized net gain on available-for-sale securities | (10,559) | (10,559) | (10,559) | (10,559) | ||||||||||||||||||||||||
Pro rata share of amounts reclassified related to a nonconsolidated subsidiary | 8,622 | 8,622 | 8,622 | 8,622 | ||||||||||||||||||||||||
Pro rata share of other comprehensive income (loss) of nonconsolidated subsidiaries | (1,657) | (1,657) | (1,657) | (1,657) | ||||||||||||||||||||||||
Increase in value of interest rate swaps | 6,611 | 6,611 | 6,611 | 6,611 | ||||||||||||||||||||||||
Adjustments to carry redeemable Class A units at redemption value | 286,928 | 286,928 | 286,928 | $ 286,928 | ||||||||||||||||||||||||
Redeemable noncontrolling interests' share of above adjustments | (188) | (188) | (188) | (188) | ||||||||||||||||||||||||
Other, shares | 4 | |||||||||||||||||||||||||||
Other, value | (345) | $ 4 | (2) | (46) | 0 | (297) | (345) | $ (2) | (46) | 0 | (297) | |||||||||||||||||
Ending balance, shares at Sep. 30, 2017 | 42,823 | 189,878 | 42,823 | 189,878 | ||||||||||||||||||||||||
Ending balance, value at Sep. 30, 2017 | 5,287,573 | $ 1,038,011 | $ 7,571 | 7,501,823 | (4,098,127) | 121,801 | 716,494 | 5,287,573 | $ 1,038,011 | $ 7,509,394 | (4,098,127) | 121,801 | 716,494 | |||||||||||||||
Beginning balance, value at Jun. 30, 2017 | 115,839 | |||||||||||||||||||||||||||
Net income (loss) attributable to Vornado / Vornado Realty L.P. | (12,898) | (14,776) | ||||||||||||||||||||||||||
Net income attributable to redeemable partnership units | 1,878 | |||||||||||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated subsidiaries | 4,022 | 1,486 | 4,022 | |||||||||||||||||||||||||
Distributions: | ||||||||||||||||||||||||||||
Reduction in unrealized net gain on available-for-sale securities | 5,656 | 5,656 | ||||||||||||||||||||||||||
Pro rata share of amounts reclassified related to a nonconsolidated subsidiary | (646) | (646) | ||||||||||||||||||||||||||
Pro rata share of other comprehensive income (loss) of nonconsolidated subsidiaries | (626) | (626) | ||||||||||||||||||||||||||
Ending balance, shares at Sep. 30, 2017 | 42,823 | 189,878 | 42,823 | 189,878 | ||||||||||||||||||||||||
Ending balance, value at Sep. 30, 2017 | 5,287,573 | $ 1,038,011 | $ 7,571 | 7,501,823 | (4,098,127) | 121,801 | 716,494 | 5,287,573 | $ 1,038,011 | $ 7,509,394 | (4,098,127) | 121,801 | 716,494 | |||||||||||||||
Cumulative effect of accounting change (see Note 3) | 14,519 | 122,893 | (108,374) | 14,519 | 122,893 | (108,374) | ||||||||||||||||||||||
Beginning balance, shares at Dec. 31, 2017 | 36,800 | 189,984 | 36,800 | 189,984 | ||||||||||||||||||||||||
Beginning balance, value at Dec. 31, 2017 | 5,007,701 | $ 891,988 | $ 7,577 | 7,492,658 | (4,183,253) | 128,682 | 670,049 | 5,007,701 | $ 891,988 | $ 7,500,235 | (4,183,253) | 128,682 | 670,049 | |||||||||||||||
Net income (loss) attributable to Vornado / Vornado Realty L.P. | 336,927 | 336,927 | 355,919 | 355,919 | ||||||||||||||||||||||||
Net income attributable to redeemable partnership units | (18,992) | (18,992) | (18,992) | |||||||||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated subsidiaries | (31,137) | (34,338) | (31,137) | (31,137) | (31,137) | |||||||||||||||||||||||
Dividends on common shares | (359,456) | (359,456) | ||||||||||||||||||||||||||
Distributions to Vornado | (359,456) | (359,456) | ||||||||||||||||||||||||||
Dividends on preferred shares / Distributions to preferred unitholders | (38,103) | (38,103) | (38,103) | (38,103) | ||||||||||||||||||||||||
Preferred share issuance costs | (15,149) | $ (663) | (14,486) | $ (663) | $ (14,486) | $ (15,149) | $ (14,486) | |||||||||||||||||||||
Common shares issued: / Class A Units issued to Vornado | ||||||||||||||||||||||||||||
Upon redemption of Class A units, at redemption value, shares | 201 | 201 | ||||||||||||||||||||||||||
Upon redemption of Class A units, at redemption value, value | 14,089 | $ 8 | 14,081 | 14,089 | $ 14,089 | |||||||||||||||||||||||
Under Vornado's employees' share option plan, shares | 77 | 77 | ||||||||||||||||||||||||||
Under Vornado's employees' share option plan, value | 4,226 | $ 3 | 4,223 | 4,226 | $ 4,226 | |||||||||||||||||||||||
Under Vornado's dividend reinvestment plan, shares | 15 | 15 | ||||||||||||||||||||||||||
Under Vornado's dividend reinvestment plan, value | 1,036 | $ 1 | 1,035 | 1,036 | $ 1,036 | |||||||||||||||||||||||
Contributions: | ||||||||||||||||||||||||||||
Contributions | 46,942 | 14,577 | 46,942 | 14,577 | 46,942 | 14,577 | 46,942 | 14,577 | ||||||||||||||||||||
Distributions: | ||||||||||||||||||||||||||||
Distributions | (23,867) | (12,665) | $ (28,173) | $ (12,665) | $ (28,173) | $ (12,665) | $ (28,173) | $ (12,665) | $ (28,173) | |||||||||||||||||||
Conversion of Series A preferred shares to common shares / Conversion of Series A preferred units to Class A units, shares | (1) | 2 | (1) | 2 | ||||||||||||||||||||||||
Conversion of Series A preferred shares to common shares / Conversion of Series A preferred units to Class A units, value | 0 | $ (31) | $ 0 | 31 | 0 | $ (31) | $ 31 | |||||||||||||||||||||
Deferred compensation shares and options, shares | 7 | 7 | ||||||||||||||||||||||||||
Deferred compensation shares and options, value | 750 | $ 0 | 871 | (121) | 750 | $ 871 | (121) | |||||||||||||||||||||
Reduction in unrealized net gain on available-for-sale securities | 0 | 0 | ||||||||||||||||||||||||||
Pro rata share of amounts reclassified related to a nonconsolidated subsidiary | 0 | 0 | ||||||||||||||||||||||||||
Pro rata share of other comprehensive income (loss) of nonconsolidated subsidiaries | 989 | 989 | 989 | 989 | ||||||||||||||||||||||||
Increase in value of interest rate swaps | 13,789 | 13,789 | 13,789 | 13,789 | ||||||||||||||||||||||||
Unearned 2015 Out-Performance Plan awards acceleration | 9,046 | 9,046 | 9,046 | 9,046 | ||||||||||||||||||||||||
Adjustments to carry redeemable Class A units at redemption value | 57,970 | 57,970 | 57,970 | 57,970 | ||||||||||||||||||||||||
Redeemable noncontrolling interests' share of above adjustments | (913) | (913) | (913) | (913) | ||||||||||||||||||||||||
Other, value | 544 | 548 | (3) | (1) | 544 | $ 548 | (3) | (1) | ||||||||||||||||||||
Ending balance, shares at Sep. 30, 2018 | 36,799 | 190,286 | 36,799 | 190,286 | ||||||||||||||||||||||||
Ending balance, value at Sep. 30, 2018 | 5,037,509 | $ 891,294 | $ 7,589 | 7,580,463 | (4,135,602) | 34,173 | 659,592 | 5,037,509 | $ 891,294 | $ 7,588,052 | (4,135,602) | 34,173 | 659,592 | |||||||||||||||
Beginning balance, value at Jun. 30, 2018 | 33,351 | |||||||||||||||||||||||||||
Net income (loss) attributable to Vornado / Vornado Realty L.P. | 203,179 | 215,850 | ||||||||||||||||||||||||||
Net income attributable to redeemable partnership units | (12,671) | |||||||||||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated subsidiaries | 3,312 | $ 558 | 3,312 | |||||||||||||||||||||||||
Distributions: | ||||||||||||||||||||||||||||
Reduction in unrealized net gain on available-for-sale securities | 0 | 0 | ||||||||||||||||||||||||||
Pro rata share of amounts reclassified related to a nonconsolidated subsidiary | 0 | 0 | ||||||||||||||||||||||||||
Pro rata share of other comprehensive income (loss) of nonconsolidated subsidiaries | 253 | 253 | ||||||||||||||||||||||||||
Ending balance, shares at Sep. 30, 2018 | 36,799 | 190,286 | 36,799 | 190,286 | ||||||||||||||||||||||||
Ending balance, value at Sep. 30, 2018 | $ 5,037,509 | $ 891,294 | $ 7,589 | $ 7,580,463 | $ (4,135,602) | $ 34,173 | $ 659,592 | $ 5,037,509 | $ 891,294 | $ 7,588,052 | $ (4,135,602) | $ 34,173 | $ 659,592 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net income | $ 324,782 | $ 210,577 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization (including amortization of deferred financing costs) | 353,761 | 407,539 |
Net gains on disposition of wholly owned and partially owned assets | (164,828) | (501) |
Distributions of income from partially owned entities | 61,782 | 65,097 |
Net realized and unrealized losses on real estate fund investments | 33,709 | 18,537 |
Amortization of below-market leases, net | (31,480) | (35,446) |
Other non-cash adjustments | 28,432 | 43,921 |
Decrease in fair value of marketable securities | 24,801 | 0 |
Return of capital from real estate fund investments | 20,291 | 80,294 |
Straight-lining of rents | (10,279) | (37,752) |
Equity in net income of partially owned entities | (6,059) | (6,013) |
Net gains on sale of real estate and other | 0 | (3,797) |
Changes in operating assets and liabilities: | ||
Real estate fund investments | (68,950) | 0 |
Tenant and other receivables, net | (11,662) | 5,485 |
Prepaid assets | 74,322 | (70,949) |
Other assets | (122,925) | (27,065) |
Accounts payable and accrued expenses | (3,810) | 27,609 |
Other liabilities | (13,849) | (15,911) |
Net cash provided by operating activities | 488,038 | 661,625 |
Cash Flows from Investing Activities: | ||
Acquisitions of real estate and other | (500,225) | (11,841) |
Development costs and construction in progress | (274,147) | (274,716) |
Proceeds from sales of real estate and related investments | 219,731 | 9,543 |
Additions to real estate | (163,546) | (207,759) |
Distributions of capital from partially owned entities | 98,609 | 347,776 |
Investments in partially owned entities | (32,728) | (33,578) |
Repayment of JBG SMITH Properties loan receivable | 0 | 115,630 |
Proceeds from repayments of mortgage loans receivable | 0 | 650 |
Net cash used in investing activities | (652,306) | (54,295) |
Cash Flows from Financing Activities: | ||
Redemption of preferred shares / units | (470,000) | 0 |
Dividends paid on common shares / Distributions to Vornado | (359,456) | (382,552) |
Proceeds from borrowings | 312,763 | 229,042 |
Repayments of borrowings | (264,482) | (177,109) |
Distributions to noncontrolling interests / Distributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries | (63,110) | (48,329) |
Contributions from noncontrolling interests / noncontrolling interests in consolidated subsidiaries | 59,924 | 1,044 |
Dividends paid on preferred shares / Distributions to preferred unitholders | (42,582) | (48,386) |
Debt prepayment and extinguishment costs | (7,451) | (2,944) |
Proceeds received from exercise of employee share options and other / Proceeds received from exercise of Vornado stock options and other | 5,262 | 25,011 |
Repurchase of shares related to stock compensation agreements and related tax withholdings and other | (818) | 0 |
Repurchase of shares / Class A units related to stock compensation agreements and related tax withholdings and other | (784) | (418) |
Cash and cash equivalents and restricted cash included in the spin-off of JBG SMITH Properties ($275,000 plus The Bartlett financing proceeds less transaction costs and other mortgage items) | 0 | (416,237) |
Net cash used in financing activities | (830,734) | (820,878) |
Net decrease in cash and cash equivalents and restricted cash | (995,002) | (213,548) |
Cash and cash equivalents and restricted cash at beginning of period | 1,914,812 | 1,599,331 |
Cash and cash equivalents and restricted cash at end of period | 919,810 | 1,385,783 |
Reconciliation of Cash and Cash Equivalents and Restricted Cash: | ||
Cash and cash equivalents at beginning of period | 1,817,655 | 1,501,027 |
Restricted cash at beginning of period | 97,157 | 95,032 |
Restricted cash included in discontinued operations at beginning of period | 0 | 3,272 |
Cash and cash equivalents and restricted cash at beginning of period | 1,914,812 | 1,599,331 |
Cash and cash equivalents at end of period | 772,524 | 1,282,230 |
Restricted cash at end of period | 147,286 | 103,553 |
Restricted cash included in discontinued operations at end of period | 0 | 0 |
Cash and cash equivalents and restricted cash at end of period | 919,810 | 1,385,783 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash payments for interest, excluding capitalized interest of $45,292 and $31,243 | 245,628 | 257,173 |
Cash payments for income taxes | 61,047 | 5,292 |
Non-Cash Investing and Financing Activities: | ||
Reclassification of condominium units from development costs and construction in progress to 220 Central Park South condominium units ready for sale | 307,552 | 0 |
Adjustments to carry redeemable Class A units at redemption value | 74,185 | 69,033 |
Accrued capital expenditures included in accounts payable and accrued expenses | (61,120) | (41,458) |
Adjustments to carry redeemable Class A units at redemption value | 57,970 | 286,928 |
Non-cash distribution to JBG SMITH Properties: | ||
Assets | 0 | 3,432,738 |
Liabilities | 0 | (1,414,186) |
Equity | 0 | (2,018,552) |
Loan receivable established upon the spin-off of JBG SMITH Properties | 0 | 115,630 |
Reduction in unrealized net gain on available-for-sale securities | 0 | (10,559) |
Vornado Realty L.P. | ||
Cash Flows from Operating Activities: | ||
Net income | 324,782 | 210,577 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization (including amortization of deferred financing costs) | 353,761 | 407,539 |
Net gains on disposition of wholly owned and partially owned assets | (164,828) | (501) |
Distributions of income from partially owned entities | 61,782 | 65,097 |
Net realized and unrealized losses on real estate fund investments | 33,709 | 18,537 |
Amortization of below-market leases, net | (31,480) | (35,446) |
Other non-cash adjustments | 28,432 | 43,921 |
Decrease in fair value of marketable securities | 24,801 | 0 |
Return of capital from real estate fund investments | 20,291 | 80,294 |
Straight-lining of rents | (10,279) | (37,752) |
Equity in net income of partially owned entities | (6,059) | (6,013) |
Net gains on sale of real estate and other | 0 | (3,797) |
Changes in operating assets and liabilities: | ||
Real estate fund investments | (68,950) | 0 |
Tenant and other receivables, net | (11,662) | 5,485 |
Prepaid assets | 74,322 | (70,949) |
Other assets | (122,925) | (27,065) |
Accounts payable and accrued expenses | (3,810) | 27,609 |
Other liabilities | (13,849) | (15,911) |
Net cash provided by operating activities | 488,038 | 661,625 |
Cash Flows from Investing Activities: | ||
Acquisitions of real estate and other | (500,225) | (11,841) |
Development costs and construction in progress | (274,147) | (274,716) |
Proceeds from sales of real estate and related investments | 219,731 | 9,543 |
Additions to real estate | (163,546) | (207,759) |
Distributions of capital from partially owned entities | 98,609 | 347,776 |
Investments in partially owned entities | (32,728) | (33,578) |
Repayment of JBG SMITH Properties loan receivable | 0 | 115,630 |
Proceeds from repayments of mortgage loans receivable | 0 | 650 |
Net cash used in investing activities | (652,306) | (54,295) |
Cash Flows from Financing Activities: | ||
Redemption of preferred shares / units | (470,000) | 0 |
Dividends paid on common shares / Distributions to Vornado | (359,456) | (382,552) |
Proceeds from borrowings | 312,763 | 229,042 |
Repayments of borrowings | (264,482) | (177,109) |
Distributions to noncontrolling interests / Distributions to redeemable security holders and noncontrolling interests in consolidated subsidiaries | (63,110) | (48,329) |
Contributions from noncontrolling interests / noncontrolling interests in consolidated subsidiaries | 59,924 | 1,044 |
Dividends paid on preferred shares / Distributions to preferred unitholders | (42,582) | (48,386) |
Debt prepayment and extinguishment costs | (7,451) | (2,944) |
Proceeds received from exercise of employee share options and other / Proceeds received from exercise of Vornado stock options and other | 5,262 | 25,011 |
Repurchase of shares related to stock compensation agreements and related tax withholdings and other | (818) | 0 |
Repurchase of shares / Class A units related to stock compensation agreements and related tax withholdings and other | (784) | (418) |
Cash and cash equivalents and restricted cash included in the spin-off of JBG SMITH Properties ($275,000 plus The Bartlett financing proceeds less transaction costs and other mortgage items) | 0 | (416,237) |
Net cash used in financing activities | (830,734) | (820,878) |
Net decrease in cash and cash equivalents and restricted cash | (995,002) | (213,548) |
Cash and cash equivalents and restricted cash at beginning of period | 1,914,812 | 1,599,331 |
Cash and cash equivalents and restricted cash at end of period | 919,810 | 1,385,783 |
Reconciliation of Cash and Cash Equivalents and Restricted Cash: | ||
Cash and cash equivalents at beginning of period | 1,817,655 | 1,501,027 |
Restricted cash at beginning of period | 97,157 | 95,032 |
Restricted cash included in discontinued operations at beginning of period | 0 | 3,272 |
Cash and cash equivalents and restricted cash at beginning of period | 1,914,812 | 1,599,331 |
Cash and cash equivalents at end of period | 772,524 | 1,282,230 |
Restricted cash at end of period | 147,286 | 103,553 |
Restricted cash included in discontinued operations at end of period | 0 | 0 |
Cash and cash equivalents and restricted cash at end of period | 919,810 | 1,385,783 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash payments for interest, excluding capitalized interest of $45,292 and $31,243 | 245,628 | 257,173 |
Cash payments for income taxes | 61,047 | 5,292 |
Non-Cash Investing and Financing Activities: | ||
Reclassification of condominium units from development costs and construction in progress to 220 Central Park South condominium units ready for sale | 307,552 | 0 |
Adjustments to carry redeemable Class A units at redemption value | 74,185 | 69,033 |
Accrued capital expenditures included in accounts payable and accrued expenses | (61,120) | (41,458) |
Adjustments to carry redeemable Class A units at redemption value | 57,970 | 286,928 |
Non-cash distribution to JBG SMITH Properties: | ||
Assets | 0 | 3,432,738 |
Liabilities | 0 | (1,414,186) |
Equity | 0 | (2,018,552) |
Loan receivable established upon the spin-off of JBG SMITH Properties | 0 | 115,630 |
Reduction in unrealized net gain on available-for-sale securities | $ 0 | $ (10,559) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Capitalized interest | $ 45,292 | $ 31,243 |
Vornado Realty L.P. | ||
Capitalized interest | 45,292 | $ 31,243 |
JBGS | ||
Cash and cash equivalents and restricted cash included in the spin-off of JBG SMITH Properties ($275,000 plus The Bartlett financing proceeds less transaction costs and other mortgage items) | (275,000) | |
JBGS | Vornado Realty L.P. | ||
Cash and cash equivalents and restricted cash included in the spin-off of JBG SMITH Properties ($275,000 plus The Bartlett financing proceeds less transaction costs and other mortgage items) | $ (275,000) |
Organization
Organization | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Vornado Realty Trust (“Vornado”) is a fully integrated real estate investment trust (“REIT”) and conducts its business through, and substantially all of its interests in properties are held by, Vornado Realty L.P., a Delaware limited partnership (the “Operating Partnership”). Vornado is the sole general partner of, and owned approximately 93.5% of the common limited partnership interest in, the Operating Partnership as of September 30, 2018 . All references to the “Company,” “we,” “us,” and “our” mean collectively Vornado, the Operating Partnership and those entities/subsidiaries consolidated by Vornado. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Basis of Presentation [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying consolidated financial statements are unaudited and include the accounts of Vornado and the Operating Partnership and their consolidated subsidiaries. All inter-company amounts have been eliminated. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 , as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the operating results for the full year. Certain prior year balances have been reclassified in order to conform to the current period presentation. For the three and nine months ended September 30, 2017 , an expense of $1,975,000 and $5,233,000 , respectively, related to the mark-to-market of our deferred compensation plan liability was reclassified from “general and administrative expenses” to “expense from deferred compensation plan liability” and income of $1,975,000 and $5,233,000 , respectively, related to the mark-to-market of our deferred compensation plan assets was reclassified from “interest and other investment income, net” to “income from deferred compensation plan assets” on our consolidated statements of income. In addition, for the nine months ended September 30, 2017 , an expense of $1,062,000 related to New York City Unincorporated Business Tax was reclassified from “general and administrative expenses” to “income tax expense” on our consolidated statements of income. |
Recently Issued Accounting Lite
Recently Issued Accounting Literature | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Literature | Recently Issued Accounting Literature In May 2014, the Financial Accounting Standards Board (“FASB”) issued an update (“ASU 2014-09”) establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). ASU 2014-09, as amended by subsequent ASUs on the topic, establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. This standard, which is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2017, requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. We adopted this standard effective January 1, 2018 using the modified retrospective method applied to all existing contracts not yet completed as of January 1, 2018 and recorded a $14,519,000 cumulative-effect adjustment to beginning accumulated deficit. The adoption of ASC 606 did not have a material impact on our financial statements (see Note 4 - Revenue Recognition ). 3 . Recently Issued Accounting Literature - continued In January 2016, the FASB issued an update (“ASU 2016-01”) Recognition and Measurement of Financial Assets and Financial Liabilities to ASC Topic 825 , Financial Instruments . ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this update effective January 1, 2018 using the modified retrospective approach. While the adoption of this update requires us to continue to measure “marketable securities” at fair value on each reporting date, the changes in fair value will be recognized in current period earnings as opposed to “other comprehensive income (loss).” As a result, on January 1, 2018 we recorded a decrease to beginning accumulated deficit of $111,225,000 to recognize the unrealized gains previously recorded in “accumulated other comprehensive income” on our consolidated balance sheets. Subsequent changes in the fair value of our marketable securities will be recorded to “interest and other investment income, net” on our consolidated statements of income. For the three and nine months ended September 30, 2018 , we recorded a decrease of $7,699,000 and $24,801,000 , respectively, in the fair value of our marketable securities which is included in “interest and other investment income, net” on our consolidated statements of income. In February 2016, the FASB issued an update (“ASU 2016-02”) establishing ASC Topic 842, Leases , as amended by subsequent ASUs on the topic, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to apply a two-method approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase. Lessees are required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. Lessees will recognize expense based on the effective interest method for finance leases or on a straight-line basis for operating leases. The accounting applied by the lessor is largely unchanged from that applied under the existing lease standard. We are currently evaluating the overall impact of the adoption of ASU 2016-02 on our consolidated financial statements and believe that the standard will more significantly impact the accounting for leases in which we are a lessee. We have a number of ground leases, which are classified as operating leases, for which we will be required to record a right-of-use asset and lease liability equal to the present value of the remaining minimum lease payments, and will continue to recognize expense on a straight-line basis upon adoption of this standard. Under ASU 2016-02, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, we will no longer be able to capitalize internal leasing costs and instead will be required to expense these costs as incurred. During the three and nine months ended September 30, 2018 and 2017 , we capitalized internal leasing costs of $1,444,000 and $1,280,000 , and $ 3,883,000 and $ 3,494,000 respectively, excluding our former Washington, DC segment which was spun-off on July 17, 2017. ASU 2016-02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued an update ("ASU 2018-11") Leases: Targeted improvements , which provides companies with an additional transition option that would permit the application of ASU 2016-02 as of the adoption date rather than to all periods presented. We plan to utilize this transition option when we adopt this standard on January 1, 2019 and plan to elect to use the transition practical expedients package available to us under the new standard. In February 2017, the FASB issued an update (“ASU 2017-05”) Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets to ASC Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets . ASU 2017-05 clarifies the scope of recently established guidance on nonfinancial asset derecognition, as well as the accounting for partial sales of nonfinancial assets. This update conforms the derecognition guidance on nonfinancial assets with the model for transactions in ASC 606. ASU 2017-05 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this update on January 1, 2018 using the modified retrospective approach applied to all contracts not yet completed. The adoption of this update did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued an update (“ASU 2017-09”) Scope of Modification Accounting to ASC Topic 718, Compensation - Stock Compensation (“ASC 718”). ASU 2017-09 provides guidance about which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in ASC 718. ASU 2017-09 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. The adoption of this update on January 1, 2018 did not have a material impact on our consolidated financial statements. 3 . Recently Issued Accounting Literature - continued In August 2017, the FASB issued an update (“ASU 2017-12”) Targeted Improvements to Accounting for Hedging Activities to ASC Topic 815, Derivatives and Hedging (“ASC 815”). ASU 2017-12 amends the hedge accounting recognition and presentation requirements in ASC 815. The update is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting and increase transparency as to the scope and results of hedge programs. ASU 2017-12 requires subsequent changes in fair value of a hedging instrument that has been designated and qualifies as a cash flow hedge to be recognized as a component of “other comprehensive income (loss).” ASU 2017-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018, with early adoption permitted. We early adopted ASU 2017-12 on January 1, 2018 using the modified retrospective approach. The adoption of this update did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued an update (“ASU 2018-13”) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement to ASC Topic 820, Fair Value Measurement (“ASC 820”). ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, and/or adding certain disclosures. ASU 2018-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2019. An entity is permitted to early adopt by modifying existing disclosures and delay adoption of the additional disclosures until the effective date. We are currently evaluating the impact of the adoption of this update on our consolidated financial statements and disclosures. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted ASC 606 which establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. This standard requires us to recognize for certain of our revenue sources the transfer of promised goods or services to customers in an amount that reflects the consideration we are entitled to in exchange for those goods or services. We adopted this standard effective January 1, 2018 using the modified retrospective method applied to all existing contracts not yet completed as of January 1, 2018 and recorded a $14,519,000 cumulative-effect adjustment to beginning accumulated deficit. The adoption of ASC 606 did not have a material impact on our consolidated financial statements. Our revenues primarily consist of property rentals, tenant expense reimbursements, and fee and other income. We operate in two reportable segments: New York and Other, with a significant portion of our revenues included in the “New York” segment. We have the following revenue sources and revenue recognition policies: • Base rent is revenue arising from tenant leases. These rents are recognized over the non-cancelable term of the related leases on a straight-line basis which includes the effects of rent steps and rent abatements. We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease. • Hotel revenue arising from the operation of Hotel Pennsylvania consists of room revenue, food and beverage revenue, and banquet revenue. Room revenue is recognized when rooms are occupied. Food and beverage and banquet revenue are recognized when the services have been transferred. • Trade shows revenue arising from the operation of trade shows is primarily booth rentals. This revenue is recognized upon the occurrence of the trade shows. • Operating expense reimbursements is revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the common areas of our properties. Revenue is recognized in the same period as the related expenses are incurred. • Tenant services is revenue arising from sub-metered electric, elevator, trash removal and other services provided to tenants at their request. This revenue is recognized as the services are transferred. • Fee and other income includes management, leasing and other revenue arising from contractual agreements with third parties or with partially owned entities, and includes Building Maintenance Service (“BMS”) cleaning, engineering and security services. This revenue is recognized as the services are transferred. Fee and other income also includes lease termination fee income which is recognized immediately if a tenant vacates or is recognized on a straight-line basis over the shortened remaining lease term. 4 . Revenue Recognition - continued Below is a summary of our revenues by segment. Base rent, operating expense reimbursements and lease terminations represent revenues from leases and are recognized in accordance with ASC Topic 840, Leases . Revenues from Hotel Pennsylvania, trade shows, tenant services, BMS cleaning fees, management and leasing fees and other income represent revenues recognized in accordance with ASC 606. Additional financial information related to these reportable segments for the three and nine months ended September 30, 2018 and 2017 is set forth in Note 23 - Segment Information . (Amounts in thousands) For the Three Months Ended September 30, 2018 For the Three Months Ended September 30, 2017 Total New York Other Total New York Other Base rent $ 403,029 $ 339,939 $ 63,090 $ 398,734 $ 339,717 $ 59,017 Hotel Pennsylvania 26,088 26,088 — 25,421 25,421 — Trade shows 8,443 — 8,443 7,907 — 7,907 Property rentals 437,560 366,027 71,533 432,062 365,138 66,924 Operating expense reimbursements 50,760 47,361 3,399 47,462 43,796 3,666 Tenant services 15,627 11,696 3,931 15,939 12,188 3,751 Tenant expense reimbursements 66,387 59,057 7,330 63,401 55,984 7,417 BMS cleaning fees 28,873 31,328 (2,455 ) (1) 26,429 28,155 (1,726 ) (1) Management and leasing fees 4,734 4,439 295 2,330 2,101 229 Lease termination fees 356 58 298 991 984 7 Other income 4,138 1,537 2,601 3,542 1,247 2,295 Fee and other income 38,101 37,362 739 33,292 32,487 805 Total revenues $ 542,048 $ 462,446 $ 79,602 $ 528,755 $ 453,609 $ 75,146 (Amounts in thousands) For the Nine Months Ended September 30, 2018 For the Nine Months Ended September 30, 2017 Total New York Other Total New York Other Base rent $ 1,215,520 $ 1,027,697 $ 187,823 $ 1,175,692 $ 999,875 $ 175,817 Hotel Pennsylvania 67,842 67,842 — 63,047 63,047 — Trade shows 38,903 — 38,903 36,858 — 36,858 Property rentals 1,322,265 1,095,539 226,726 1,275,597 1,062,922 212,675 Operating expense reimbursements 143,412 132,443 10,969 132,828 122,247 10,581 Tenant services 41,597 31,854 9,743 41,263 32,817 8,446 Tenant expense reimbursements 185,009 164,297 20,712 174,091 155,064 19,027 BMS cleaning fees 88,095 94,888 (6,793 ) (1) 75,925 80,895 (4,970 ) (1) Management and leasing fees 10,205 9,384 821 7,382 6,593 789 Lease termination fees 1,505 766 739 5,947 5,773 174 Other income 13,224 4,608 8,616 8,958 5,463 3,495 Fee and other income 113,029 109,646 3,383 98,212 98,724 (512 ) Total revenues $ 1,620,303 $ 1,369,482 $ 250,821 $ 1,547,900 $ 1,316,710 $ 231,190 ____________________ (1) Represents the elimination of intercompany fees from the New York segment upon consolidation. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 537 West 26th Street On February 9, 2018, we acquired 537 West 26th Street, a 14,000 square foot commercial property adjacent to our 260 Eleventh Avenue office property, and 55,000 square feet of additional zoning air rights for $44,000,000 . 1535 Broadway On July 30, 2012, we entered into a lease with Host Hotels & Resorts, Inc. (NYSE: HST) (“Host”), under which we redeveloped the retail and signage components of the Marriott Times Square Hotel. We accounted for this lease as a “capital lease” and recorded a $240,000,000 capital lease asset and liability. On September 21, 2018, we acquired the retail condominium from Host for $442,000,000 (inclusive of a $240,000,000 capital lease liability) . The original lease transaction provided that we would become the 100% owner through a put/call arrangement, based on a pre-negotiated formula. This transaction satisfies the put/call arrangement. Our 100% fee interest includes 45,000 square feet of retail, the 1,611 seat Marquis Theater and the largest digital sign in New York with a 330 linear foot, 25,000 square foot display. |
Real Estate Fund Investments
Real Estate Fund Investments | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate Fund Investments [Abstract] | |
Real Estate Fund Investments | Real Estate Fund Investments . We are the general partner and investment manager of Vornado Capital Partners Real Estate Fund (the “Fund”) and own a 25.0% interest in the Fund, which had an initial eight -year term ending February 2019. On January 29, 2018, the Fund's term was extended to February 2023. The Fund's three -year investment period ended in July 2013 . The Fund is accounted for under ASC Topic 946, Financial Services – Investment Companies (“ASC 946”) and its investments are reported on its balance sheet at fair value, with changes in value each period recognized in earnings. We consolidate the accounts of the Fund into our consolidated financial statements, retaining the fair value basis of accounting. We are also the general partner and investment manager of the Crowne Plaza Times Square Hotel Joint Venture (the “Crowne Plaza Joint Venture”) and own a 57.1% interest in the joint venture which owns the 24.7% interest in the Crowne Plaza Times Square Hotel not owned by the Fund. The Crowne Plaza Joint Venture is also accounted for under ASC 946 and we consolidate the accounts of the joint venture into our consolidated financial statements, retaining the fair value basis of accounting. On January 17, 2018, the Fund completed the sale of the retail condominium at 11 East 68th Street, a property located on Madison Avenue and 68th Street, for $82,000,000 . From the inception of this investment through its disposition, the Fund realized a $46,259,000 net gain. In March 2011, a joint venture (the “Joint Venture”) owned 64.7% by the Fund, 30.3% by Vornado and 5.0% by a third party, acquired One Park Avenue for $394,000,000 . In connection with the acquisition, the Joint Venture paid $3,000,000 of New York City real property transfer tax (the “Transfer Tax”) and filed a Real Property Tax Return (“RPTR”) with the New York City Department of Finance (the “Department of Finance”). The RPTR was audited by the Department of Finance in 2014 and an increased Transfer Tax was assessed. The Joint Venture appealed the increased Transfer Tax assessment and the Joint Venture's appeal was upheld by a New York City Administrative Law Judge (“ALJ”) in January 2017. The Department of Finance appealed the ALJ's decision and on February 16, 2018 the New York City Tax Appeals Tribunal (the “Tax Tribunal”) reversed the ALJ's decision and assessed $9,491,000 of additional Transfer Tax and $6,764,000 of interest. As a result of the Tax Tribunal's decision, we recorded an expense of $15,608,000 , before noncontrolling interests, during the first quarter of 2018, which was subsequently paid on April 5, 2018, in order to permit us to appeal the Tax Tribunal's decision and stop the accrual of interest, of which $10,630,000 is included in “loss from real estate fund investments” and $4,978,000 is included in “income (loss) from partially owned entities” (see Note 8 - Investments in Partially Owned Entities ) on our consolidated statements of income for the nine months ended September 30, 2018 . We are appealing the Tax Tribunal's decision. On April 19, 2018, the joint venture between the Fund and the Crowne Plaza Joint Venture completed a $255,000,000 refinancing of the Crowne Plaza Times Square Hotel. The interest-only loan is at LIBOR plus 3.51% ( 5.66% at September 30, 2018 ) and matures in May 2020 with three one -year extension options. In connection therewith, the joint venture purchased an interest rate cap that caps LIBOR at a rate of 4.00% . The Crowne Plaza Times Square Hotel was previously encumbered by a $310,000,000 interest-only mortgage at LIBOR plus 2.80% , which was scheduled to mature in December 2018. 6 . Real Estate Fund Investments - continued As of September 30, 2018 , we had four real estate fund investments through the Fund and the Crowne Plaza Joint Venture with an aggregate fair value of $369,767,000 , or $44,203,000 in excess of cost, and had remaining unfunded commitments of $50,494,000 , of which our share was $16,119,000 . At December 31, 2017, we had five real estate fund investments with an aggregate fair value of $354,804,000 . Below is a summary of loss from the Fund and the Crowne Plaza Joint Venture for the three and nine months ended September 30, 2018 and 2017 . (Amounts in thousands) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Net investment income $ 3,093 $ 6,028 $ 6,366 $ 16,888 Net unrealized loss on held investments (3,283 ) (11,220 ) (32,796 ) (28,860 ) Net realized gain (loss) on exited investments — 35,620 (913 ) 35,861 Previously recorded unrealized gain on exited investment — (36,736 ) — (25,538 ) Transfer Tax — — (10,630 ) — Loss from real estate fund investments (190 ) (6,308 ) (37,973 ) (1,649 ) Less (income) loss attributable to noncontrolling interests in consolidated subsidiaries (558 ) (1,486 ) 34,338 (9,684 ) Loss from real estate fund investments attributable to the Operating Partnership (748 ) (7,794 ) (3,635 ) (11,333 ) Less loss attributable to noncontrolling interests in the Operating Partnership 46 485 224 706 Loss from real estate fund investments attributable to Vornado $ (702 ) $ (7,309 ) $ (3,411 ) $ (10,627 ) |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2018 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities Our portfolio of marketable securities is comprised of equity securities that are presented on our consolidated balance sheets at fair value. On January 1, 2018, we adopted ASU 2016-01, which requires changes in the fair value of our marketable securities to be recorded in current period earnings. Previously, changes in the fair value of marketable securities were recognized in “accumulated other comprehensive income” on our consolidated balance sheets. As a result, on January 1, 2018 we recorded a decrease to beginning accumulated deficit of $111,225,000 to recognize the unrealized gains previously recorded in “accumulated other comprehensive income” on our consolidated balance sheets. Subsequent changes in the fair value of our marketable securities will be recorded to “interest and other investment income, net” on our consolidated statements of income. Below is a summary of our marketable securities portfolio as of September 30, 2018 and December 31, 2017 . (Amounts in thousands) Fair Value at (Decrease) Increase September 30, 2018 December 31, 2017 in Fair Value (1) Equity securities: Lexington Realty Trust $ 153,292 $ 178,226 $ (24,934 ) Other 4,659 4,526 133 $ 157,951 $ 182,752 $ (24,801 ) ____________________ (1) The decrease in fair value of our marketable securities for the nine months ended September 30, 2018 is included in “interest and other investment income, net” on our consolidated statements of income (see Note 19 - Interest and Other Investment Income, Net ). |
Investments in Partially Owned
Investments in Partially Owned Entities | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Partially Owned Entities | Investments in Partially Owned Entities Alexander’s, Inc. (“Alexander’s”) (NYSE: ALX) As of September 30, 2018 , we own 1,654,068 Alexander’s common shares, or approximately 32.4% of Alexander’s common equity. We manage, lease and develop Alexander’s properties pursuant to agreements which expire in March of each year and are automatically renewable. As of September 30, 2018 , the market value ("fair value" pursuant to ASC 820) of our investment in Alexander’s, based on Alexander’s September 28, 2018 quarter ended closing share price of $343.30 , was $567,842,000 , or $456,000,000 in excess of the carrying amount on our consolidated balance sheet. As of September 30, 2018 , the carrying amount of our investment in Alexander’s, excluding amounts owed to us, exceeds our share of the equity in the net assets of Alexander’s by approximately $39,093,000 . The majority of this basis difference resulted from the excess of our purchase price for the Alexander’s common stock acquired over the book value of Alexander’s net assets. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Alexander’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in Alexander’s net income. The basis difference related to the land will be recognized upon disposition of our investment. Alexander's paid $3,971,000 of Transfer Tax upon the November 2012 sale of its Kings Plaza Regional Shopping Center located in Brooklyn, New York. Alexander's accrued $23,797,000 of potential additional Transfer Tax and related interest based on the precedent established by the Tax Tribunal's decision regarding One Park Avenue (see Note 6 - Real Estate Fund Investments for details) during the first quarter of 2018 which was subsequently paid on April 5, 2018 in order to preserve Alexander's rights to continue litigation and stop accrual of interest, of which our 32.4% share is $7,708,000 and is included in “income (loss) from partially owned entities” on our consolidated statements of income in the nine months ended September 30, 2018 . Urban Edge Properties (“UE”) (NYSE: UE) As of September 30, 2018 , we own 5,717,184 UE operating partnership units, representing a 4.5% ownership interest in UE. We account for our investment in UE under the equity method and record our share of UE’s net income or loss on a one -quarter lag basis. In 2018 and 2017 , we provided UE with information technology support. UE is providing us with leasing and property management services for (i) certain small retail properties that we plan to sell, and (ii) our affiliate, Alexander’s, Rego Park retail assets. As of September 30, 2018 , the fair value of our investment in UE, based on UE’s September 28, 2018 quarter ended closing share price of $22.08 , was $126,235,000 , or $80,837,000 in excess of the carrying amount on our consolidated balance sheet. Pennsylvania Real Estate Investment Trust (“PREIT”) (NYSE: PEI) As of September 30, 2018 , we own 6,250,000 PREIT operating partnership units, representing an 7.9% interest in PREIT. We account for our investment in PREIT under the equity method and record our share of PREIT’s net income or loss on a one-quarter lag basis. As of September 30, 2018 , the fair value of our investment in PREIT, based on PREIT’s September 28, 2018 quarter ended closing share price of $9.46 , was $59,125,000 or $ 2,389,000 below the carrying amount on our consolidated balance sheet. As of September 30, 2018 , the carrying amount of our investment in PREIT exceeds our share of the equity in the net assets of PREIT by approximately $36,096,000 . The majority of this basis difference resulted from the excess of the fair value of the PREIT operating units received over our share of the book value of PREIT’s net assets. Substantially all of this basis difference was allocated, based on our estimates of the fair values of PREIT’s assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in PREIT’s net loss. The basis difference related to the land will be recognized upon disposition of our investment. 8 . Investments in Partially Owned Entities - continued Independence Plaza We have a 50.1% economic interest in a joint venture that owns Independence Plaza, a three -building 1,327 unit residential complex in the Tribeca submarket of Manhattan. The joint venture paid $1,730,000 of Transfer Tax upon its acquisition of the property in December 2012. The joint venture accrued $13,103,000 of potential additional Transfer Tax and related interest based on the precedent established by the Tax Tribunal's decision regarding One Park Avenue (see Note 6 - Real Estate Fund Investments for details) during the first quarter of 2018, which was subsequently paid on April 5, 2018, in order to preserve the joint venture's rights to continue litigation and stop accrual of interest. Because we consolidate the entity that incurred the potential additional Transfer Tax, $13,103,000 of expense is included in “transaction related costs and other” and $6,538,000 is allocated to “noncontrolling interests in consolidated subsidiaries” on our consolidated statements of income. On June 11, 2018, the joint venture completed a $675,000,000 refinancing of Independence Plaza. The seven -year interest-only loan matures in July 2025 and has a fixed rate of 4.25% . Our share of net proceeds, after repayment of the existing 3.48% $550,000,000 mortgage and closing costs, was $ 55,618,000 . Toys "R" Us, Inc. ("Toys") We own 32.5% of Toys. On September 18, 2017, Toys filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code. In the second quarter of 2018, Toys liquidated the inventory of its U.S. stores and ceased operations. We carry our Toys investment at zero . Further, we do not hold any debt of Toys and do not guarantee any of Toys’ obligations. For income tax purposes, we carry our investment in Toys as of September 30, 2018 at approximately $420,000,000 , which could result in a tax deduction in future periods. 666 Fifth Avenue Office Condominium On August 3, 2018, we completed the sale of our 49.5% interests in the 666 Fifth Avenue Office Condominium. We received net proceeds of $120,000,000 and recognized a financial statement gain of $134,032,000 which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income for the three and nine months ended September 30, 2018. The gain for tax purposes was approximately $244,000,000 . We continue to own all of the 666 Fifth Avenue Retail Condominium encompassing the Uniqlo, Tissot and Hollister stores with 125 linear feet of frontage on Fifth Avenue between 52nd and 53rd Street. Concurrently with the sale of our interests, the existing mortgage loan on the property was repaid and we received net proceeds of $55,244,000 for the participation we held in the mortgage loan. We recognized a financial statement gain of $7,308,000 , which is included in "net gains on disposition of wholly owned and partially owned assets" on our consolidated statements of income for the three and nine months ended September 30, 2018. 8 . Investments in Partially Owned Entities - continued Below is a schedule summarizing our investments in partially owned entities. (Amounts in thousands) Percentage Ownership at Balance as of September 30, 2018 December 31, 2017 Investments: Partially owned office buildings/land (1) Various $ 502,826 $ 504,393 Alexander’s 32.4% 111,842 126,400 PREIT 7.9% 61,514 66,572 UE 4.5% 45,398 46,152 Other investments (2) Various 187,860 313,312 $ 909,440 $ 1,056,829 330 Madison Avenue (3) 25.0% $ (57,935 ) $ (53,999 ) 7 West 34th Street (4) 53.0% (49,647 ) (47,369 ) $ (107,582 ) $ (101,368 ) ____________________ (1) Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 512 West 22nd Street, 85 Tenth Avenue, 61 Ninth Avenue and others. (2) Includes interests in Independence Plaza, Fashion Centre Mall/Washington Tower, Rosslyn Plaza, 50-70 West 93rd Street, Moynihan Office Building and others. (3) Our negative basis resulted from a refinancing distribution and is included in “other liabilities” on our consolidated balance sheets. (4) Our negative basis resulted from a deferred gain from the sale of a 47.0% ownership interest in the property on May 27, 2016 and is included in “other liabilities” on our consolidated balance sheets. Below is a schedule of net income (loss) from partially owned entities. (Amounts in thousands) Percentage For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Our share of net income (loss): Alexander's (see page 26 for details): Equity in net income (1) 32.4% $ 4,278 $ 6,510 $ 7,215 $ 20,092 Management, leasing and development fees 1,149 1,335 3,378 4,351 5,427 7,845 10,593 24,443 UE (see page 26 for details): Equity in net income (2) 4.5% 2,696 5,908 3,017 25,793 Management, leasing and development fees 67 100 217 518 2,763 6,008 3,234 26,311 Partially owned office buildings (3) Various 735 (967 ) (1,546 ) 79 PREIT (see page 26 for details) (4) 7.9% (616 ) (49,748 ) (2,113 ) (53,480 ) Other investments (5) Various (1,103 ) (4,939 ) (4,109 ) 8,225 $ 7,206 $ (41,801 ) $ 6,059 $ 5,578 ____________________ (1) The three and nine months ended September 30, 2018 include our $1,085 share of a non-cash straight-line rent write-off adjustment related to Sears Roebuck and Co. which filed for Chapter 11 bankruptcy relief and our $518 share of Alexander’s litigation expense due to a settlement. The nine months ended September 30, 2018 also includes our $7,708 share of Alexander's potential additional Transfer Tax, our $3,162 share of higher interest expense due to an increase in average LIBOR and higher average mortgage balances due to a refinancing and our $1,802 share of expense related to the change in fair value of marketable securities held by Alexander’s. (2) The three and nine months ended September 30, 2017 include $5,200 and $21,100 , respectively, of net gain resulting from UE operating partnership unit issuances. (3) Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 7 West 34th Street, 330 Madison Avenue, 512 West 22nd Street, 85 Tenth Avenue and others. The nine month period ended September 30, 2018 includes our $4,978 share of potential additional Transfer Tax related to the March 2011 acquisition of One Park Avenue (see Note 6 - Real Estate Fund Investments ). (4) The three and nine months ended September 30, 2017 include a $44,465 non-cash impairment loss. (5) Includes interests in Independence Plaza, Fashion Centre Mall/Washington Tower, Rosslyn Plaza, 50-70 West 93rd Street, 666 Fifth Avenue Office Condominium (sold on August 3, 2018) and others. In the nine months ended September 30, 2017, we recognized $26,687 of net gains, comprised of $15,314 representing our share of a net gain on the sale of Suffolk Downs and $11,373 representing the net gain on repayment of our debt investments in Suffolk Downs JV. |
220 Central Park South
220 Central Park South | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
220 Central Park South | 220 Central Park South We are constructing a residential condominium tower containing 397,000 salable square feet at 220 Central Park South (“220 CPS”). The development cost of this project (exclusive of land cost of $515,400,000 ) is estimated to be approximately $1.4 billion , of which $1.1 billion has been expended as of September 30, 2018. For income tax purposes, we recognize revenue associated with our 220 CPS project using the percentage of completion method. On May 25, 2018, the 220 CPS condominium offering plan was declared effective by the Attorney General of the State of New York. During the quarter ended September 30, 2018, we paid $52,200,000 for estimated Federal, state and local income taxes due, which is included in "other assets" on our consolidated balance sheet as of September 30, 2018 . GAAP revenue associated with our 220 CPS project is recognized when our performance obligation is deemed satisfied at a point in time when legal title transfers upon closing of the condominium unit sales. In August 2018, we received a temporary certificate of occupancy for certain units, representing approximately 16% of the total development cost, where construction has been substantially completed. Accordingly, at September 30, 2018, the development cost of these units aggregating $307,552,000 has been reclassed from “development costs and construction in progress” to "220 Central Park South condominium units ready for sale" on our consolidated balance sheet as of September 30, 2018 . |
Dispositions
Dispositions | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | Dispositions New York On June 21, 2018, we completed the $45,000,000 sale of 27 Washington Square North, which resulted in a net gain of $23,559,000 which is included in “net gains on disposition of wholly owned and partially owned assets” on our consolidated statements of income. We acquired the property in December 2015 for $20,000,000 . Discontinued Operations We have reclassified the revenues and expenses of our former Washington, DC segment which was spun off on July 17, 2017 and other related retail assets that were sold to “income (loss) from discontinued operations” and the related assets and liabilities to “assets related to discontinued operations” and “liabilities related to discontinued operations” for all periods presented in the accompanying financial statements. The tables below set forth the assets and liabilities related to discontinued operations as of September 30, 2018 and December 31, 2017 , and their combined results of operations and cash flows for the three and nine months ended September 30, 2018 and 2017 . (Amounts in thousands) Balance as of September 30, 2018 December 31, 2017 Assets related to discontinued operations: Other assets $ 74 $ 1,357 Liabilities related to discontinued operations: Other liabilities $ 205 $ 3,620 (Amounts in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Income (loss) from discontinued operations: Total revenues $ 174 $ 25,747 $ 867 $ 260,969 Total expenses 113 21,708 1,104 211,930 61 4,039 (237 ) 49,039 JBG SMITH Properties ("JBGS") spin-off transaction costs — (53,581 ) — (67,045 ) Additional net gains on sale of real estate — 1,530 618 3,797 Income from partially-owned entities — 93 — 435 Pretax income (loss) from discontinued operations 61 (47,919 ) 381 (13,774 ) Income tax expense — (11 ) — (727 ) Income (loss) from discontinued operations $ 61 $ (47,930 ) $ 381 $ (14,501 ) (Amounts in thousands) For the Nine Months Ended September 30, 2018 2017 Cash flows related to discontinued operations: Cash flows from operating activities $ (1,751 ) $ 39,581 Cash flows from investing activities — (48,377 ) |
Identified Intangible Assets an
Identified Intangible Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identified Intangible Assets and Liabilities | Identified Intangible Assets and Liabilities The following summarizes our identified intangible assets (primarily above-market leases) and liabilities (primarily acquired below-market leases) as of September 30, 2018 and December 31, 2017 . (Amounts in thousands) Balance as of September 30, 2018 December 31, 2017 Identified intangible assets: Gross amount $ 307,855 $ 310,097 Accumulated amortization (167,861 ) (150,837 ) Total, net $ 139,994 $ 159,260 Identified intangible liabilities (included in deferred revenue): Gross amount $ 508,468 $ 530,497 Accumulated amortization (338,665 ) (324,897 ) Total, net $ 169,803 $ 205,600 Amortization of acquired below-market leases, net of acquired above-market leases, resulted in an increase to rental income of $10,373,000 and $11,054,000 for the three months ended September 30, 2018 and 2017 , respectively, and $31,480,000 and $34,758,000 for the nine months ended September 30, 2018 and 2017 , respectively. Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2019 is as follows: (Amounts in thousands) 2019 $ 25,115 2020 24,047 2021 19,313 2022 16,173 2023 13,496 Amortization of all other identified intangible assets (a component of depreciation and amortization expense) was $4,822,000 and $6,069,000 for the three months ended September 30, 2018 and 2017 , respectively, and $14,557,000 and $19,896,000 for the nine months ended September 30, 2018 and 2017 , respectively. Estimated annual amortization of all other identified intangible assets including acquired in-place leases, customer relationships, and third party contracts for each of the five succeeding years commencing January 1, 2019 is as follows: (Amounts in thousands) 2019 $ 12,902 2020 12,817 2021 11,838 2022 10,286 2023 10,158 We are a tenant under ground leases for certain properties. Amortization of these acquired below-market leases, net of above-market leases, resulted in an increase to rent expense (a component of operating expense) of $437,000 and $437,000 for the three months ended September 30, 2018 , and 2017 , respectively, and $1,310,000 and $1,310,000 for the nine months ended September 30, 2018 and 2017 , respectively. Estimated annual amortization of these below-market leases, net of above-market leases, for each of the five succeeding years commencing January 1, 2019 is as follows: (Amounts in thousands) 2019 $ 1,747 2020 1,747 2021 1,747 2022 1,747 2023 1,747 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt On January 5, 2018, we completed a $100,000,000 refinancing of 33-00 Northern Boulevard (Center Building), a 471,000 square foot office building in Long Island City, New York. The seven -year loan is at LIBOR plus 1.80% , which was swapped to a fixed rate of 4.14% . We realized net proceeds of approximately $37,200,000 after repayment of the existing 4.43% $59,800,000 mortgage and closing costs. On August 9, 2018, we completed a $120,000,000 refinancing of 4 Union Square South, a 206,000 square foot Manhattan retail property. The interest-only loan carries a rate of LIBOR plus 1.40% ( 3.50% as of September 30, 2018) and matures in 2025, as extended. The property was previously encumbered by a $113,000,000 mortgage at LIBOR plus 2.15% , which was scheduled to mature in 2019. The following is a summary of our debt: (Amounts in thousands) Interest Rate at Balance as of September 30, 2018 December 31, 2017 Mortgages Payable: Fixed rate 3.53% $ 5,006,360 $ 5,461,706 Variable rate 3.99% 3,165,760 2,742,133 Total 3.71% 8,172,120 8,203,839 Deferred financing costs, net and other (53,045 ) (66,700 ) Total, net $ 8,119,075 $ 8,137,139 Unsecured Debt: Senior unsecured notes 4.21% $ 850,000 $ 850,000 Deferred financing costs, net and other (6,290 ) (6,386 ) Senior unsecured notes, net 843,710 843,614 Unsecured term loan 3.39% 750,000 750,000 Deferred financing costs, net and other (126 ) (1,266 ) Unsecured term loan, net 749,874 748,734 Unsecured revolving credit facilities 3.15% 80,000 — Total, net $ 1,673,584 $ 1,592,348 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests / Redeemable Partnership Units | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests / Redeemable Partnership Units | Redeemable Noncontrolling Interests/Redeemable Partnership Units Redeemable noncontrolling interests on Vornado’s consolidated balance sheets and redeemable partnership units on the consolidated balance sheets of the Operating Partnership are primarily comprised of Class A Operating Partnership units held by third parties and are recorded at the greater of their carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to “additional capital” in Vornado’s consolidated statements of changes in equity and to “partners’ capital” on the consolidated balance sheets of the Operating Partnership. (Amounts in thousands) Balance, December 31, 2016 $ 1,278,446 Net income 9,057 Other comprehensive income 188 Distributions (25,663 ) Redemption of Class A units for Vornado common shares, at redemption value (34,564 ) Adjustments to carry redeemable Class A units at redemption value (including $224,069 attributable to the spin-off of JBGS) (286,928 ) Other, net 30,168 Balance, September 30, 2017 $ 970,704 Balance, December 31, 2017 $ 984,937 Net income 18,992 Other comprehensive income 913 Distributions (23,867 ) Redemption of Class A units for Vornado common shares, at redemption value (14,089 ) Adjustments to carry redeemable Class A units at redemption value (57,970 ) Other, net 15,666 Balance, September 30, 2018 $ 924,582 As of September 30, 2018 and December 31, 2017 , the aggregate redemption value of redeemable Class A units of the Operating Partnership, which are those units held by third parties, was $919,154,000 and $979,509,000 , respectively. Redeemable noncontrolling interests/redeemable partnership units exclude our Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for as liabilities in accordance with ASC Topic 480, Distinguishing Liabilities and Equity , because of their possible settlement by issuing a variable number of Vornado common shares. Accordingly, the fair value of these units is included as a component of “other liabilities” on our consolidated balance sheets and aggregated $50,561,000 as of September 30, 2018 and December 31, 2017 . Changes in the value from period to period, if any, are charged to “interest and debt expense” on our consolidated statements of income. |
Shareholders' Equity_Partners'
Shareholders' Equity/Partners' Capital | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Shareholders' Equity/Partners' Capital | Shareholders' Equity/Partners' Capital On January 4 and 11, 2018, we redeemed all of the outstanding 6.625% Series G and Series I cumulative redeemable preferred shares/units at their redemption price of $25.00 per share/unit, or $470,000,000 in the aggregate, plus accrued and unpaid dividends/distributions through the date of redemption, and expensed $14,486,000 of previously capitalized issuance costs. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income ("AOCI") | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated other comprehensive income ("AOCI") | Accumulated Other Comprehensive Income (“AOCI”) The following tables set forth the changes in accumulated other comprehensive income by component. (Amounts in thousands) Total Marketable securities Pro rata share of nonconsolidated subsidiaries' OCI Interest rate swaps Other For the Three Months Ended September 30, 2018 Balance as of June 30, 2018 $ 33,351 $ — $ 2,834 $ 39,559 $ (9,042 ) Net current period OCI: OCI before reclassifications 822 — 253 623 (54 ) Amounts reclassified from AOCI — — — — — 822 — 253 623 (54 ) Balance as of September 30, 2018 $ 34,173 $ — $ 3,087 $ 40,182 $ (9,096 ) For the Three Months Ended September 30, 2017 Balance as of June 30, 2017 $ 115,839 $ 114,290 $ (3,821 ) $ 12,702 $ (7,332 ) Net current period OCI: OCI before reclassifications 6,608 5,656 (626 ) 1,976 (398 ) Amounts reclassified from AOCI (646 ) — (646 ) (1) — — 5,962 5,656 (1,272 ) 1,976 (398 ) Balance as of September 30, 2017 $ 121,801 $ 119,946 $ (5,093 ) $ 14,678 $ (7,730 ) For the Nine Months Ended September 30, 2018 Balance as of December 31, 2017 $ 128,682 $ 109,554 $ 3,769 $ 23,542 $ (8,183 ) Cumulative effect of accounting change (see Note 3) (108,374 ) (109,554 ) (1,671 ) 2,851 — Net current period OCI: OCI before reclassifications 13,865 — 989 13,789 (913 ) Amounts reclassified from AOCI — — — — — 13,865 — 989 13,789 (913 ) Balance as of September 30, 2018 $ 34,173 $ — $ 3,087 $ 40,182 $ (9,096 ) For the Nine Months Ended September 30, 2017 Balance as of December 31, 2016 $ 118,972 $ 130,505 $ (12,058 ) $ 8,066 $ (7,541 ) Net current period OCI: OCI before reclassifications (5,793 ) (10,559 ) (1,657 ) 6,612 (189 ) Amounts reclassified from AOCI 8,622 — 8,622 (1) — — 2,829 (10,559 ) 6,965 6,612 (189 ) Balance as of September 30, 2017 $ 121,801 $ 119,946 $ (5,093 ) $ 14,678 $ (7,730 ) ____________________ (1) Reclassified upon receipt of proceeds related to the sale of an investment by a nonconsolidated subsidiary. |
Variable Interest Entities ("VI
Variable Interest Entities ("VIEs") | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities ("VIEs") | Variable Interest Entities (“VIEs”) Unconsolidated VIEs As of September 30, 2018 and December 31, 2017 , we have several unconsolidated VIEs. We do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities does not give us power over decisions that significantly affect these entities’ economic performance. We account for our investment in these entities under the equity method (see Note 8 – Investments in Partially Owned Entities ). As of September 30, 2018 and December 31, 2017 , the net carrying amount of our investments in these entities was $256,674,000 and $352,925,000 , respectively, and our maximum exposure to loss in these entities is limited to the carrying amount of our investments. Consolidated VIEs Our most significant consolidated VIEs are the Operating Partnership (for Vornado), real estate fund investments, and certain properties that have noncontrolling interests. These entities are VIEs because the noncontrolling interests do not have substantive kick-out or participating rights. We consolidate these entities because we control all of their significant business activities. As of September 30, 2018 , the total assets and liabilities of our consolidated VIEs, excluding the Operating Partnership, were $3,572,362,000 and $1,813,993,000 , respectively. As of December 31, 2017 , the total assets and liabilities of our consolidated VIEs, excluding the Operating Partnership, were $3,561,062,000 and $1,753,798,000 , respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
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; 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) marketable securities, (ii) real estate fund investments, (iii) the assets in our deferred compensation plan (for which there is a corresponding liability on our consolidated balance sheets), (iv) interest rate swaps and (v) mandatorily redeemable instruments (Series G-1 through G-4 convertible preferred units, Series D-13 cumulative redeemable preferred units, and 6.625% Series G and Series I cumulative redeemable preferred shares/units which were redeemed on January 4 and 11, 2018 (see Note 14 - Shareholders' Equity/Partners' Capital )). The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy as of September 30, 2018 and December 31, 2017 , respectively. (Amounts in thousands) As of September 30, 2018 Total Level 1 Level 2 Level 3 Marketable securities $ 157,951 $ 157,951 $ — $ — Real estate fund investments 369,767 — — 369,767 Deferred compensation plan assets ($10,233 included in restricted cash and $92,048 in other assets) 102,281 63,493 — 38,788 Interest rate swaps (included in other assets) 40,203 — 40,203 — Total assets $ 670,202 $ 221,444 $ 40,203 $ 408,555 Mandatorily redeemable instruments (included in other liabilities) $ 50,561 $ 50,561 $ — $ — (Amounts in thousands) As of December 31, 2017 Total Level 1 Level 2 Level 3 Marketable securities $ 182,752 $ 182,752 $ — $ — Real estate fund investments 354,804 — — 354,804 Deferred compensation plan assets ($11,545 included in restricted cash and $97,632 in other assets) 109,177 69,049 — 40,128 Interest rate swaps (included in other assets) 27,472 — 27,472 — Total assets $ 674,205 $ 251,801 $ 27,472 $ 394,932 Mandatorily redeemable instruments ($50,561 included in other liabilities) $ 520,561 $ 520,561 $ — $ — Interest rate swaps (included in other liabilities) 1,052 — 1,052 — Total liabilities $ 521,613 $ 520,561 $ 1,052 $ — 17 . Fair Value Measurements - continued Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued Real Estate Fund Investments As of September 30, 2018 , we had four real estate fund investments with an aggregate fair value of $369,767,000 , or $44,203,000 in excess of cost. These investments are classified as Level 3. We use a discounted cash flow valuation technique to estimate the fair value of each of these investments, which is updated quarterly by personnel responsible for the management of each investment and reviewed by senior management at each reporting period. The discounted cash flow valuation technique requires us to estimate cash flows for each investment over the anticipated holding period, which currently ranges from 0.3 to 4.3 years. Cash flows are derived from property rental revenue (base rents plus reimbursements) less operating expenses, real estate taxes and capital and other costs, plus projected sales proceeds in the year of exit. Property rental revenue is based on leases currently in place and our estimates for future leasing activity, which are based on current market rents for similar space plus a projected growth factor. Similarly, estimated operating expenses and real estate taxes are based on amounts incurred in the current period plus a projected growth factor for future periods. Anticipated sales proceeds at the end of an investment’s expected holding period are determined based on the net cash flow of the investment in the year of exit, divided by a terminal capitalization rate, less estimated selling costs. The fair value of each property is calculated by discounting the future cash flows (including the projected sales proceeds), using an appropriate discount rate and then reduced by the property’s outstanding debt, if any, to determine the fair value of the equity in each investment. Significant unobservable quantitative inputs used in determining the fair value of each investment include capitalization rates and discount rates. These rates are based on the location, type and nature of each property, current and anticipated market conditions, industry publications and from the experience of our Acquisitions and Capital Markets departments. Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate fund investments as of September 30, 2018 and December 31, 2017 . Range Weighted Average (based on fair value of investments) Unobservable Quantitative Input September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Discount rates 10.0% to 15.0% 2.0% to 14.9% 13.2% 11.9% Terminal capitalization rates 5.3% to 6.4% 4.7% to 6.7% 5.6% 5.5% The above inputs are subject to change based on changes in economic and market conditions and/or changes in use or timing of exit. Changes in discount rates and terminal capitalization rates result in increases or decreases in the fair values of these investments. The discount rates encompass, among other things, uncertainties in the valuation models with respect to terminal capitalization rates and the amount and timing of cash flows. Therefore, a change in the fair value of these investments resulting from a change in the terminal capitalization rate may be partially offset by a change in the discount rate. It is not possible for us to predict the effect of future economic or market conditions on our estimated fair values. The table below summarizes the changes in the fair value of real estate fund investments that are classified as Level 3, for the three and nine months ended September 30, 2018 and 2017 . (Amounts in thousands) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Beginning balance $ 373,039 $ 455,692 $ 354,804 $ 462,132 Net unrealized loss on held investments (3,283 ) (11,220 ) (32,796 ) (28,860 ) Dispositions — (91,606 ) (20,291 ) (91,606 ) Previously recorded unrealized gain on exited investment — (36,736 ) — (25,538 ) Net realized gain (loss) on exited investments — 35,620 (913 ) 35,861 Purchases / additional fundings — — 68,950 — Other, net 11 — 13 (239 ) Ending balance $ 369,767 $ 351,750 $ 369,767 $ 351,750 17 . 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 from a third-party administrator, which are compiled from the quarterly reports provided to them from each limited partnership and investment fund. The quarterly reports provide net asset values on a fair value basis which are audited by independent public accounting firms on an annual basis. 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, for the three and nine months ended September 30, 2018 and 2017 . (Amounts in thousands) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Beginning balance $ 39,870 $ 49,849 $ 40,128 $ 57,444 Sales (3,304 ) (3,810 ) (6,813 ) (15,922 ) Purchases 1,576 2,176 3,209 3,989 Realized and unrealized gains 180 246 892 2,151 Other, net 466 823 1,372 1,622 Ending balance $ 38,788 $ 49,284 $ 38,788 $ 49,284 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, 2018 and December 31, 2017 . 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. Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required under the instrument and discounting them back to their present value at the appropriate current risk adjusted interest rate, which is 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 values of cash equivalents and borrowings under our unsecured revolving credit facilities and unsecured term loan are classified as Level 1. The fair values of our secured and unsecured debt are classified as Level 2. The table below summarizes the carrying amounts and fair value of these financial instruments as of September 30, 2018 and December 31, 2017 . (Amounts in thousands) As of September 30, 2018 As of December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Cash equivalents $ 630,271 $ 630,000 $ 1,500,227 $ 1,500,000 Debt: Mortgages payable $ 8,172,120 $ 8,091,000 $ 8,203,839 $ 8,194,000 Senior unsecured notes 850,000 845,000 850,000 878,000 Unsecured term loan 750,000 750,000 750,000 750,000 Unsecured revolving credit facilities 80,000 80,000 — — Total $ 9,852,120 (1) $ 9,766,000 $ 9,803,839 (1) $ 9,822,000 ____________________ (1) Excludes $59,461 and $74,352 of deferred financing costs, net and other as of September 30, 2018 and December 31, 2017 , respectively. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation Vornado’s 2010 Omnibus Share Plan (the “Plan”) provides the Compensation Committee of our Board of Trustees (the “Committee”) the ability to grant incentive and non-qualified Vornado stock options, restricted stock, restricted Operating Partnership units, out-performance plan awards and appreciation-only long-term incentive plan units (“AO LTIP Units”) to certain of our employees and officers. We account for all equity-based compensation in accordance with ASC 718. Stock-based compensation expense, a component of "general and administrative" expenses on our consolidated statements of income, was $5,545,000 and $5,693,000 for the three months ended September 30, 2018 and 2017 , respectively, and $26,190,000 and $27,319,000 for the nine months ended September 30, 2018 and 2017 , respectively. AO LTIP Units On January 12, 2018, the Committee approved the issuance of AO LTIP Units pursuant to the Plan to certain of our officers and employees. In connection with the approval of AO LTIP Units, Vornado, in its capacity as sole general partner of the Operating Partnership, amended the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership (the “Partnership Agreement”) in order to establish the terms of the new class of partnership interests known as AO LTIP Units. AO LTIP Units are a class of partnership interests in the Operating Partnership that are intended to qualify as “profits interests” for federal income tax purposes and generally only allow the recipient to realize value to the extent the fair market value of a Vornado common share exceeds the threshold level set at the time the AO LTIP Units are granted, subject to any vesting conditions applicable to the award. The threshold level is intended to be equal to 100% of the then fair market value of a Vornado common share on the date of grant. The value of vested AO LTIP Units is realized through conversion of the AO LTIP Units into Class A Operating Partnership units. The number of Class A Units into which vested AO LTIP Units may be converted is determined based on the quotient of (i) the excess of the conversion value on the conversion date over the threshold value designated at the time the AO LTIP Unit was granted, divided by (ii) the conversion value on the conversion date. The “conversion value” is the value of a Vornado common share on the conversion date multiplied by the Conversion Factor as defined in the Partnership Agreement, which is currently one. AO LTIP Units vest ratably over four years and have a term of ten years from the grant date. The fair value of the AO LTIP Units on the date of grant was $3,484,000 , of which $622,000 was immediately expensed due to the acceleration of vesting for employees who are retirement eligible (have reached age 65 or age 60 with at least 20 years of service). The remaining $2,862,000 is being amortized into expense over a four -year period from the date of grant using a graded vesting attribution model. Each holder will generally receive special income allocations in respect of an AO LTIP Unit equal to 10% (or such other percentage specified in the applicable award agreement) of the income allocated in respect of a Class A Unit. Upon conversion of AO LTIP Units to Class A Units, holders will be entitled to receive in respect of each such AO LTIP Unit, on a per unit basis, a special distribution equal to 10% (or such other percentage specified in the applicable award agreement) of the distributions received by a holder of an equivalent number of Class A Units during the period from the grant date of the AO LTIP Units through the date of conversion. 18 . Stock-based Compensation - continued 2018 Outperformance Plan (“2018 OPP”) On March 15, 2018, the Committee approved the 2018 OPP, a multi-year, $35,000,000 performance-based stock compensation plan of which $27,354,000 was granted to senior executives. The fair value of the 2018 OPP granted was $10,283,000 , of which $8,040,000 was immediately expensed due to the acceleration of vesting for employees who are retirement eligible (have reached age 65 or age 60 with at least 20 years of service). The remaining $2,243,000 is being amortized into expense over a five -year period from the date of grant using a graded vesting attribution model. Under the 2018 OPP, participants have the opportunity to earn compensation payable in the form of equity awards if Vornado outperforms a predetermined total shareholder return (“TSR”) and/or outperforms the market with respect to relative total TSR during the three -year performance period (the “Performance Period”) from March 15, 2018 to March 15, 2021 (the “Measurement Date”). Specifically, awards under the 2018 OPP may potentially be earned if Vornado (i) achieves a TSR above a benchmark weighted index (the “Index”) comprised 70% of the SNL US Office REIT Index and 30% of the SNL US Retail Index over the Performance Period (the “Relative Component”), and/or (ii) achieves a TSR greater than 21% over the Performance Period (the “Absolute Component”). The value of awards under the Relative Component and Absolute Component will be calculated separately and will each be subject to an aggregate $35,000,000 maximum award cap for all participants. The two components will be added together to determine the aggregate award size, which shall also be subject to the aggregate $35,000,000 maximum award cap for all participants. In the event awards are earned under the Absolute Component, but Vornado underperforms the Index by more than 200 basis points per annum over the Performance Period (600 basis points over the three years), the amount earned under the Absolute Component will be reduced (and potentially fully negated) based on the degree by which the Index exceeds Vornado’s TSR. In the event awards are earned under the Relative Component, but Vornado fails to achieve a TSR of at least 3% per annum, awards earned under the Relative Component will be reduced on a ratable sliding scale based on Vornado’s absolute TSR performance, with awards earned under the Relative Component being reduced by a maximum of 50% in the event Vornado’s TSR during the Measurement Period is 0% or negative. If the designated performance objectives are achieved, awards under the 2018 OPP will vest ratably on the Measurement Date and the first and second anniversary of the Measurement Date. In addition, all of Vornado’s Named Executive Officers (as defined in Vornado’s Proxy Statement filed on Schedule 14A with the Securities and Exchange Commission on April 6, 2018) are required to hold any earned and vested awards for one year following each such vesting date. Dividends on awards granted under the 2018 OPP accrue during the Performance Period and are paid to participants if awards are ultimately earned based on the achievement of the designated performance objectives. |
Interest and Other Investment (
Interest and Other Investment (Loss) Income, Net | 9 Months Ended |
Sep. 30, 2018 | |
Interest and Other Income [Abstract] | |
Interest and Other Investment (Loss) Income, Net | Interest and Other Investment Income, Net The following table sets forth the details of interest and other investment income, net: (Amounts in thousands) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 (Decrease) increase in fair value of marketable securities: Lexington Realty Trust $ (7,942 ) $ — $ (24,934 ) $ — Other 243 — 133 — (7,699 ) — (24,801 ) — Interest on cash and cash equivalents and restricted cash 4,306 1,636 12,370 4,264 Dividends on marketable securities 3,354 3,309 10,060 9,923 Interest on loans receivable (1) 2,004 754 8,952 3,599 Other, net 928 1,632 2,820 4,781 $ 2,893 $ 7,331 $ 9,401 $ 22,567 ____________________ (1) The three and nine months ended September 30, 2018 include $1,250 and $6,707 , respectively, of profit participation in connection with an investment in a mezzanine loan which was previously repaid to us. |
Interest and Debt Expense
Interest and Debt Expense | 9 Months Ended |
Sep. 30, 2018 | |
Interest and Debt Expense [Abstract] | |
Interest And Debt Expense | Interest and Debt Expense The following table sets forth the details of interest and debt expense: (Amounts in thousands) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Interest expense $ 98,841 $ 89,675 $ 290,006 $ 263,037 Amortization of deferred financing costs 8,348 7,977 24,486 24,523 Capitalized interest and debt expense (18,238 ) (12,584 ) (49,718 ) (34,979 ) $ 88,951 $ 85,068 $ 264,774 $ 252,581 |
Income (Loss) Per Share _Income
Income (Loss) Per Share /Income (Loss) Per Class A Unit | 9 Months Ended |
Sep. 30, 2018 | |
Earnings per share | |
Income (Loss) Per Share /Income (Loss) Per Class A Unit | Income (Loss) Per Share/Income (Loss) Per Class A Unit Vornado Realty Trust The following table provides a reconciliation of both net income (loss) attributable to Vornado and the number of common shares used in the computation of (i) basic income (loss) per common share - which includes the weighted average number of common shares outstanding without regard to dilutive potential common shares, and (ii) diluted income (loss) per common share - which includes the weighted average common shares and dilutive share equivalents. Dilutive share equivalents may include our Series A convertible preferred shares, employee stock options, restricted stock awards and Out-Performance Plan awards. (Amounts in thousands, except per share amounts) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Numerator: Income from continuing operations, net of income attributable to noncontrolling interests $ 203,122 $ 32,050 $ 336,570 $ 196,684 Income (loss) from discontinued operations, net of income attributable to noncontrolling interests 57 (44,948 ) 357 (13,600 ) Net income (loss) attributable to Vornado 203,179 (12,898 ) 336,927 183,084 Preferred share dividends (12,534 ) (16,128 ) (38,103 ) (48,386 ) Preferred share issuance costs — — (14,486 ) — Net income (loss) attributable to common shareholders 190,645 (29,026 ) 284,338 134,698 Earnings allocated to unvested participating securities (17 ) (9 ) (33 ) (37 ) Numerator for basic income (loss) per share 190,628 (29,035 ) 284,305 134,661 Impact of assumed conversions: Convertible preferred share dividends 15 — 47 — Earnings allocated to Out-Performance Plan units — — 127 195 Numerator for diluted income (loss) per share $ 190,643 $ (29,035 ) $ 284,479 $ 134,856 Denominator: Denominator for basic income (loss) per share – weighted average shares 190,245 189,593 190,176 189,401 Effect of dilutive securities (1) : Employee stock options and restricted share awards 1,045 1,254 972 1,553 Convertible preferred shares 37 — 38 303 Out-Performance Plan units — — 106 — Denominator for diluted income (loss) per share – weighted average shares and assumed conversions 191,327 190,847 191,292 191,257 INCOME (LOSS) PER COMMON SHARE – BASIC: Income from continuing operations, net $ 1.00 $ 0.09 $ 1.50 $ 0.78 Loss from discontinued operations, net — (0.24 ) — (0.07 ) Net income (loss) per common share $ 1.00 $ (0.15 ) $ 1.50 $ 0.71 INCOME (LOSS) PER COMMON SHARE – DILUTED: Income from continuing operations, net $ 1.00 $ 0.09 $ 1.49 $ 0.78 Loss from discontinued operations, net — (0.24 ) — (0.07 ) Net income (loss) per common share $ 1.00 $ (0.15 ) $ 1.49 $ 0.71 ____________________ (1) The effect of dilutive securities for the three months ended September 30, 2018 and 2017 excludes an aggregate of 12,372 and 12,413 weighted average common share equivalents, respectively, and 12,220 and 12,173 weighted average common share equivalents for the nine months ended September 30, 2018 and 2017 , respectively, as their effect was anti-dilutive. |
Vornado Realty L.P. | |
Earnings per share | |
Income (Loss) Per Share /Income (Loss) Per Class A Unit | Income (Loss) Per Share/Income (Loss) Per Class A Unit - continued Vornado Realty L.P. The following table provides a reconciliation of both net income (loss) attributable to Vornado Realty L.P. and the number of Class A units used in the computation of (i) basic income (loss) per Class A unit - which includes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units, and (ii) diluted income (loss) per Class A unit - which includes the weighted average Class A units and dilutive unit equivalents. Dilutive unit equivalents may include our Series A convertible preferred units, Vornado stock options, restricted unit awards and Out-Performance Plan awards. (Amounts in thousands, except per unit amounts) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Numerator: Income from continuing operations, net of income attributable to noncontrolling interests in consolidated subsidiaries $ 215,789 $ 33,154 $ 355,538 $ 206,642 Income (loss) from discontinued operations 61 (47,930 ) 381 (14,501 ) Net income (loss) attributable to Vornado Realty L.P. 215,850 (14,776 ) 355,919 192,141 Preferred unit distributions (12,582 ) (16,176 ) (38,248 ) (48,531 ) Preferred unit issuance costs — — (14,486 ) — Net income (loss) attributable to Class A unitholders 203,268 (30,952 ) 303,185 143,610 Earnings allocated to unvested participating securities (997 ) (740 ) (2,259 ) (2,499 ) Numerator for basic income (loss) per Class A unit 202,271 (31,692 ) 300,926 141,111 Impact of assumed conversions: Convertible preferred unit distributions 15 — 47 — Numerator for diluted income (loss) per Class A unit $ 202,286 $ (31,692 ) $ 300,973 $ 141,111 Denominator: Denominator for basic income (loss) per Class A unit – weighted average units 202,103 201,300 202,033 201,093 Effect of dilutive securities (1) : Vornado stock options and restricted unit awards 1,454 1,813 1,329 2,218 Convertible preferred units 37 — 38 — Denominator for diluted income (loss) per Class A unit – weighted average units and assumed conversions 203,594 203,113 203,400 203,311 INCOME (LOSS) PER CLASS A UNIT – BASIC: Income from continuing operations, net $ 1.00 $ 0.08 $ 1.49 $ 0.77 Loss from discontinued operations, net — (0.24 ) — (0.07 ) Net income (loss) per Class A unit $ 1.00 $ (0.16 ) $ 1.49 $ 0.70 INCOME (LOSS) PER CLASS A UNIT – DILUTED: Income from continuing operations, net $ 0.99 $ 0.08 $ 1.48 $ 0.76 Loss from discontinued operations, net — (0.24 ) — (0.07 ) Net income (loss) per Class A unit $ 0.99 $ (0.16 ) $ 1.48 $ 0.69 ____________________ (1) The effect of dilutive securities for the three months ended September 30, 2018 and 2017 excludes an aggregate of 105 and 147 weighted average Class A unit equivalents, respectively, and 112 and 118 weighted average Class A unit equivalents for the nine months ended September 30, 2018 and 2017 , respectively, as their effect was anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Insurance We maintain general liability insurance with limits of $300,000,000 per occurrence and per property, and all risk property and rental value insurance with limits of $2.0 billion per occurrence, with sub-limits for certain perils such as flood and earthquake. Our California properties have earthquake insurance with coverage of $260,000,000 per occurrence and in the aggregate, subject to a deductible in the amount of 5% of the value of the affected property. We maintain coverage for terrorism acts with limits of $4.0 billion per occurrence and in the aggregate, and $2.0 billion per occurrence and in the aggregate for terrorism involving nuclear, biological, chemical and radiological (“NBCR”) terrorism events, as defined by the Terrorism Risk Insurance Program Reauthorization Act of 2015, which expires in December 2020. Penn Plaza Insurance Company, LLC (“PPIC”), our wholly owned consolidated subsidiary, acts as a re-insurer with respect to a portion of all-risk property and rental value insurance and a portion of our earthquake insurance coverage, and as a direct insurer for coverage for acts of terrorism including NBCR acts. Coverage for acts of terrorism (excluding NBCR acts) is fully reinsured by third-party insurance companies and the Federal government with no exposure to PPIC. For NBCR acts, PPIC is responsible for a deductible of $1,601,000 and 18% of the balance of a covered loss and the Federal government is responsible for the remaining portion of a covered loss. We are ultimately responsible for any loss incurred by PPIC. We continue to monitor the state of the insurance market and the scope and cost of coverage for acts of terrorism. However, we cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for deductibles and losses in excess of our insurance coverage, which could be material. Our debt instruments, consisting of mortgage loans secured by our properties which are generally non-recourse to us, senior unsecured notes, and our unsecured loan and revolving credit agreements, contain customary covenants requiring us to maintain insurance. Although we believe that we have adequate insurance coverage for purposes of these agreements, we may not be able to obtain an equivalent amount of coverage at reasonable cost in the future. Further, if lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance our properties and expand our portfolio. 22 . Commitments and Contingencies - continued Other Commitments and Contingencies We are from time to time involved in legal actions arising in the ordinary course of business. In our opinion, after consultation with legal counsel, the outcome of such matters is not currently expected to have a material adverse effect on our financial position, results of operations or cash flows. Each of our properties has been subjected to varying degrees of environmental assessment at various times. The environmental assessments did not reveal any material environmental contamination. However, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites or changes in cleanup requirements would not result in significant cost to us. Generally, our mortgage loans are non-recourse to us. However, in certain cases we have provided guarantees or master leased tenant space. These guarantees and master leases terminate either upon the satisfaction of specified circumstances or repayment of the underlying loans. As of September 30, 2018 , the aggregate dollar amount of these guarantees and master leases is approximately $620,000,000 . As of September 30, 2018 , $13,337,000 of letters of credit was outstanding under one of our unsecured revolving credit facilities. Our unsecured revolving credit facilities contain financial covenants that require us to maintain minimum interest rate coverage and maximum debt to market capitalization ratios, and provide for higher interest rates in the event of a decline in our ratings below Baa3/BBB. Our unsecured revolving credit facilities also contain customary conditions precedent to borrowing, including representations and warranties, and also contain customary events of default that could give rise to accelerated repayment, including such items as failure to pay interest or principal. In September 2016, our 50.1% joint venture with Related Companies ("Related") was designated by Empire State Development ("ESD"), an entity of New York State, to redevelop the historic Farley Post Office Building. The joint venture entered into a development agreement with ESD and a design-build contract with Skanska Moynihan Train Hall Builders. Under the development agreement with ESD, the joint venture is obligated to build the Moynihan Train Hall, with Vornado and Related each guaranteeing the joint venture’s obligations. Under the design-build agreement, Skanska Moynihan Train Hall Builders is obligated to fulfill all of the joint venture’s obligations. The obligations of Skanska Moynihan Train Hall Builders have been bonded by Skanska USA and bear a full guaranty from Skanska AB. As of September 30, 2018 , we expect to fund additional capital to certain of our partially owned entities aggregating approximately $19,000,000 . As of September 30, 2018 , we have construction commitments aggregating approximately $295,000,000 . |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Net Operating Income (“NOI”) represents total revenues less operating expenses. We consider NOI to be the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. As properties are bought and sold based on NOI, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI should not be considered a substitute for net income. NOI may not be comparable to similarly titled measures employed by other companies. Below is a reconciliation of net income (loss) to NOI at share and NOI at share - cash basis for three and nine months ended September 30, 2018 and 2017 . (Amounts in thousands) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Net income (loss) $ 219,162 $ (10,754 ) $ 324,782 $ 210,577 Deduct: (Income) loss from partially owned entities (7,206 ) 41,801 (6,059 ) (5,578 ) Loss from real estate fund investments 190 6,308 37,973 1,649 Interest and other investment income, net (2,893 ) (7,331 ) (9,401 ) (22,567 ) Net gains on disposition of wholly owned and partially owned assets (141,269 ) — (164,828 ) (501 ) (Income) loss from discontinued operations (61 ) 47,930 (381 ) 14,501 NOI attributable to noncontrolling interests in consolidated subsidiaries (16,943 ) (16,171 ) (51,415 ) (48,778 ) Add: Depreciation and amortization expense 113,169 104,972 333,701 315,223 General and administrative expense 31,977 34,286 108,937 115,866 Transaction related costs and other 2,510 61 16,683 1,073 Our share of NOI from partially owned entities 60,094 66,876 193,359 199,989 Interest and debt expense 88,951 85,068 264,774 252,581 Income tax expense 1,943 1,188 4,964 3,491 NOI at share 349,624 354,234 1,053,089 1,037,526 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (8,743 ) (22,307 ) (39,172 ) (65,263 ) NOI at share - cash basis $ 340,881 $ 331,927 $ 1,013,917 $ 972,263 23 . Segment Information - continued Below is a summary of NOI at share and NOI at share - cash basis by segment for the three and nine months ended September 30, 2018 and 2017 . (Amounts in thousands) For the Three Months Ended September 30, 2018 Total New York Other Total revenues $ 542,048 $ 462,446 $ 79,602 Operating expenses 235,575 200,949 34,626 NOI - consolidated 306,473 261,497 44,976 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (16,943 ) (11,348 ) (5,595 ) Add: Our share of NOI from partially owned entities 60,094 47,179 12,915 NOI at share 349,624 297,328 52,296 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (8,743 ) (9,125 ) 382 NOI at share - cash basis $ 340,881 $ 288,203 $ 52,678 (Amounts in thousands) For the Three Months Ended September 30, 2017 Total New York Other Total revenues $ 528,755 $ 453,609 $ 75,146 Operating expenses 225,226 192,430 32,796 NOI - consolidated 303,529 261,179 42,350 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (16,171 ) (11,464 ) (4,707 ) Add: Our share of NOI from partially owned entities 66,876 48,779 18,097 NOI at share 354,234 298,494 55,740 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (22,307 ) (21,092 ) (1,215 ) NOI at share - cash basis $ 331,927 $ 277,402 $ 54,525 (Amounts in thousands) For the Nine Months Ended September 30, 2018 Total New York Other Total revenues $ 1,620,303 $ 1,369,482 $ 250,821 Operating expenses 709,158 599,768 109,390 NOI - consolidated 911,145 769,714 141,431 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (51,415 ) (34,653 ) (16,762 ) Add: Our share of NOI from partially owned entities 193,359 146,730 46,629 NOI at share 1,053,089 881,791 171,298 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (39,172 ) (39,161 ) (11 ) NOI at share - cash basis $ 1,013,917 $ 842,630 $ 171,287 (Amounts in thousands) For the Nine Months Ended September 30, 2017 Total New York Other Total revenues $ 1,547,900 $ 1,316,710 $ 231,190 Operating expenses 661,585 561,249 100,336 NOI - consolidated 886,315 755,461 130,854 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (48,778 ) (34,251 ) (14,527 ) Add: Our share of NOI from partially owned entities 199,989 140,627 59,362 NOI at share 1,037,526 861,837 175,689 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (65,263 ) (57,761 ) (7,502 ) NOI at share - cash basis $ 972,263 $ 804,076 $ 168,187 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On October 26, 2018, we extended our $750,000,000 unsecured term loan from October 2020 to February 2024. The interest rate on the extended unsecured term loan was lowered from LIBOR plus 1.15% to LIBOR plus 1.00% |
Recently Issued Accounting Li_2
Recently Issued Accounting Literature (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements are unaudited and include the accounts of Vornado and the Operating Partnership and their consolidated subsidiaries. All inter-company amounts have been eliminated. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. These condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 , as filed with the SEC. We have made estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the operating results for the full year. Certain prior year balances have been reclassified in order to conform to the current period presentation. For the three and nine months ended September 30, 2017 , an expense of $1,975,000 and $5,233,000 , respectively, related to the mark-to-market of our deferred compensation plan liability was reclassified from “general and administrative expenses” to “expense from deferred compensation plan liability” and income of $1,975,000 and $5,233,000 , respectively, related to the mark-to-market of our deferred compensation plan assets was reclassified from “interest and other investment income, net” to “income from deferred compensation plan assets” on our consolidated statements of income. In addition, for the nine months ended September 30, 2017 , an expense of $1,062,000 related to New York City Unincorporated Business Tax was reclassified from “general and administrative expenses” to “income tax expense” on our consolidated statements of income. |
Revenue from Contract with Customer | In May 2014, the Financial Accounting Standards Board (“FASB”) issued an update (“ASU 2014-09”) establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). ASU 2014-09, as amended by subsequent ASUs on the topic, establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. This standard, which is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2017, requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. We adopted this standard effective January 1, 2018 using the modified retrospective method applied to all existing contracts not yet completed as of January 1, 2018 and recorded a $14,519,000 cumulative-effect adjustment to beginning accumulated deficit. The adoption of ASC 606 did not have a material impact on our financial statements (see Note 4 - Revenue Recognition ). |
Recognition and Measurement of Financial Assets and Liabilities | In January 2016, the FASB issued an update (“ASU 2016-01”) Recognition and Measurement of Financial Assets and Financial Liabilities to ASC Topic 825 , Financial Instruments . ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this update effective January 1, 2018 using the modified retrospective approach. While the adoption of this update requires us to continue to measure “marketable securities” at fair value on each reporting date, the changes in fair value will be recognized in current period earnings as opposed to “other comprehensive income (loss).” As a result, on January 1, 2018 we recorded a decrease to beginning accumulated deficit of $111,225,000 to recognize the unrealized gains previously recorded in “accumulated other comprehensive income” on our consolidated balance sheets. Subsequent changes in the fair value of our marketable securities will be recorded to “interest and other investment income, net” on our consolidated statements of income. For the three and nine months ended September 30, 2018 , we recorded a decrease of $7,699,000 and $24,801,000 , respectively, in the fair value of our marketable securities which is included in “interest and other investment income, net” on our consolidated statements of income. |
Leases | In February 2016, the FASB issued an update (“ASU 2016-02”) establishing ASC Topic 842, Leases , as amended by subsequent ASUs on the topic, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to apply a two-method approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase. Lessees are required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. Lessees will recognize expense based on the effective interest method for finance leases or on a straight-line basis for operating leases. The accounting applied by the lessor is largely unchanged from that applied under the existing lease standard. We are currently evaluating the overall impact of the adoption of ASU 2016-02 on our consolidated financial statements and believe that the standard will more significantly impact the accounting for leases in which we are a lessee. We have a number of ground leases, which are classified as operating leases, for which we will be required to record a right-of-use asset and lease liability equal to the present value of the remaining minimum lease payments, and will continue to recognize expense on a straight-line basis upon adoption of this standard. Under ASU 2016-02, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, we will no longer be able to capitalize internal leasing costs and instead will be required to expense these costs as incurred. During the three and nine months ended September 30, 2018 and 2017 , we capitalized internal leasing costs of $1,444,000 and $1,280,000 , and $ 3,883,000 and $ 3,494,000 respectively, excluding our former Washington, DC segment which was spun-off on July 17, 2017. ASU 2016-02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued an update ("ASU 2018-11") Leases: Targeted improvements , which provides companies with an additional transition option that would permit the application of ASU 2016-02 as of the adoption date rather than to all periods presented. We plan to utilize this transition option when we adopt this standard on January 1, 2019 and plan to elect to use the transition practical expedients package available to us under the new standard. |
Clarifying the Scope of Asset Derecognition | In February 2017, the FASB issued an update (“ASU 2017-05”) Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets to ASC Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets . ASU 2017-05 clarifies the scope of recently established guidance on nonfinancial asset derecognition, as well as the accounting for partial sales of nonfinancial assets. This update conforms the derecognition guidance on nonfinancial assets with the model for transactions in ASC 606. ASU 2017-05 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this update on January 1, 2018 using the modified retrospective approach applied to all contracts not yet completed. The adoption of this update did not have a material impact on our consolidated financial statements. |
Scope of Modification Accounting | In May 2017, the FASB issued an update (“ASU 2017-09”) Scope of Modification Accounting to ASC Topic 718, Compensation - Stock Compensation (“ASC 718”). ASU 2017-09 provides guidance about which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in ASC 718. ASU 2017-09 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. The adoption of this update on January 1, 2018 did not have a material impact on our consolidated financial statements. |
Targeted Improvements to Accounting for Hedging Activities | In August 2017, the FASB issued an update (“ASU 2017-12”) Targeted Improvements to Accounting for Hedging Activities to ASC Topic 815, Derivatives and Hedging (“ASC 815”). ASU 2017-12 amends the hedge accounting recognition and presentation requirements in ASC 815. The update is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting and increase transparency as to the scope and results of hedge programs. ASU 2017-12 requires subsequent changes in fair value of a hedging instrument that has been designated and qualifies as a cash flow hedge to be recognized as a component of “other comprehensive income (loss).” ASU 2017-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018, with early adoption permitted. We early adopted ASU 2017-12 on January 1, 2018 using the modified retrospective approach. The adoption of this update did not have a material impact on our consolidated financial statements. |
Recently Issued Accounting Literature | In May 2014, the Financial Accounting Standards Board (“FASB”) issued an update (“ASU 2014-09”) establishing Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). ASU 2014-09, as amended by subsequent ASUs on the topic, establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. This standard, which is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2017, requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. We adopted this standard effective January 1, 2018 using the modified retrospective method applied to all existing contracts not yet completed as of January 1, 2018 and recorded a $14,519,000 cumulative-effect adjustment to beginning accumulated deficit. The adoption of ASC 606 did not have a material impact on our financial statements (see Note 4 - Revenue Recognition ). 3 . Recently Issued Accounting Literature - continued In January 2016, the FASB issued an update (“ASU 2016-01”) Recognition and Measurement of Financial Assets and Financial Liabilities to ASC Topic 825 , Financial Instruments . ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this update effective January 1, 2018 using the modified retrospective approach. While the adoption of this update requires us to continue to measure “marketable securities” at fair value on each reporting date, the changes in fair value will be recognized in current period earnings as opposed to “other comprehensive income (loss).” As a result, on January 1, 2018 we recorded a decrease to beginning accumulated deficit of $111,225,000 to recognize the unrealized gains previously recorded in “accumulated other comprehensive income” on our consolidated balance sheets. Subsequent changes in the fair value of our marketable securities will be recorded to “interest and other investment income, net” on our consolidated statements of income. For the three and nine months ended September 30, 2018 , we recorded a decrease of $7,699,000 and $24,801,000 , respectively, in the fair value of our marketable securities which is included in “interest and other investment income, net” on our consolidated statements of income. In February 2016, the FASB issued an update (“ASU 2016-02”) establishing ASC Topic 842, Leases , as amended by subsequent ASUs on the topic, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to apply a two-method approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase. Lessees are required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. Lessees will recognize expense based on the effective interest method for finance leases or on a straight-line basis for operating leases. The accounting applied by the lessor is largely unchanged from that applied under the existing lease standard. We are currently evaluating the overall impact of the adoption of ASU 2016-02 on our consolidated financial statements and believe that the standard will more significantly impact the accounting for leases in which we are a lessee. We have a number of ground leases, which are classified as operating leases, for which we will be required to record a right-of-use asset and lease liability equal to the present value of the remaining minimum lease payments, and will continue to recognize expense on a straight-line basis upon adoption of this standard. Under ASU 2016-02, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, we will no longer be able to capitalize internal leasing costs and instead will be required to expense these costs as incurred. During the three and nine months ended September 30, 2018 and 2017 , we capitalized internal leasing costs of $1,444,000 and $1,280,000 , and $ 3,883,000 and $ 3,494,000 respectively, excluding our former Washington, DC segment which was spun-off on July 17, 2017. ASU 2016-02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued an update ("ASU 2018-11") Leases: Targeted improvements , which provides companies with an additional transition option that would permit the application of ASU 2016-02 as of the adoption date rather than to all periods presented. We plan to utilize this transition option when we adopt this standard on January 1, 2019 and plan to elect to use the transition practical expedients package available to us under the new standard. In February 2017, the FASB issued an update (“ASU 2017-05”) Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets to ASC Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets . ASU 2017-05 clarifies the scope of recently established guidance on nonfinancial asset derecognition, as well as the accounting for partial sales of nonfinancial assets. This update conforms the derecognition guidance on nonfinancial assets with the model for transactions in ASC 606. ASU 2017-05 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this update on January 1, 2018 using the modified retrospective approach applied to all contracts not yet completed. The adoption of this update did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued an update (“ASU 2017-09”) Scope of Modification Accounting to ASC Topic 718, Compensation - Stock Compensation (“ASC 718”). ASU 2017-09 provides guidance about which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in ASC 718. ASU 2017-09 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. The adoption of this update on January 1, 2018 did not have a material impact on our consolidated financial statements. 3 . Recently Issued Accounting Literature - continued In August 2017, the FASB issued an update (“ASU 2017-12”) Targeted Improvements to Accounting for Hedging Activities to ASC Topic 815, Derivatives and Hedging (“ASC 815”). ASU 2017-12 amends the hedge accounting recognition and presentation requirements in ASC 815. The update is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting and increase transparency as to the scope and results of hedge programs. ASU 2017-12 requires subsequent changes in fair value of a hedging instrument that has been designated and qualifies as a cash flow hedge to be recognized as a component of “other comprehensive income (loss).” ASU 2017-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018, with early adoption permitted. We early adopted ASU 2017-12 on January 1, 2018 using the modified retrospective approach. The adoption of this update did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued an update (“ASU 2018-13”) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement to ASC Topic 820, Fair Value Measurement (“ASC 820”). ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, and/or adding certain disclosures. ASU 2018-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2019. An entity is permitted to early adopt by modifying existing disclosures and delay adoption of the additional disclosures until the effective date. We are currently evaluating the impact of the adoption of this update on our consolidated financial statements and disclosures. |
Revenue Recognition | Our revenues primarily consist of property rentals, tenant expense reimbursements, and fee and other income. We operate in two reportable segments: New York and Other, with a significant portion of our revenues included in the “New York” segment. We have the following revenue sources and revenue recognition policies: • Base rent is revenue arising from tenant leases. These rents are recognized over the non-cancelable term of the related leases on a straight-line basis which includes the effects of rent steps and rent abatements. We commence rental revenue recognition when the tenant takes possession of the leased space and the leased space is substantially ready for its intended use. In addition, in circumstances where we provide a tenant improvement allowance for improvements that are owned by the tenant, we recognize the allowance as a reduction of rental revenue on a straight-line basis over the term of the lease. • Hotel revenue arising from the operation of Hotel Pennsylvania consists of room revenue, food and beverage revenue, and banquet revenue. Room revenue is recognized when rooms are occupied. Food and beverage and banquet revenue are recognized when the services have been transferred. • Trade shows revenue arising from the operation of trade shows is primarily booth rentals. This revenue is recognized upon the occurrence of the trade shows. • Operating expense reimbursements is revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses and real estate taxes of the common areas of our properties. Revenue is recognized in the same period as the related expenses are incurred. • Tenant services is revenue arising from sub-metered electric, elevator, trash removal and other services provided to tenants at their request. This revenue is recognized as the services are transferred. • Fee and other income includes management, leasing and other revenue arising from contractual agreements with third parties or with partially owned entities, and includes Building Maintenance Service (“BMS”) cleaning, engineering and security services. This revenue is recognized as the services are transferred. Fee and other income also includes lease termination fee income which is recognized immediately if a tenant vacates or is recognized on a straight-line basis over the shortened remaining lease term. GAAP revenue associated with our 220 CPS project is recognized when our performance obligation is deemed satisfied at a point in time when legal title transfers upon closing of the condominium unit sales. |
Real Estate Fund Investments | We are also the general partner and investment manager of the Crowne Plaza Times Square Hotel Joint Venture (the “Crowne Plaza Joint Venture”) and own a 57.1% interest in the joint venture which owns the 24.7% interest in the Crowne Plaza Times Square Hotel not owned by the Fund. The Crowne Plaza Joint Venture is also accounted for under ASC 946 and we consolidate the accounts of the joint venture into our consolidated financial statements, retaining the fair value basis of accounting. The Fund is accounted for under ASC Topic 946, Financial Services – Investment Companies (“ASC 946”) and its investments are reported on its balance sheet at fair value, with changes in value each period recognized in earnings. We consolidate the accounts of the Fund into our consolidated financial statements, retaining the fair value basis of accounting. |
Fair Value Measurement, Changes to the Disclosure Requirements | In August 2018, the FASB issued an update (“ASU 2018-13”) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement to ASC Topic 820, Fair Value Measurement (“ASC 820”). ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, and/or adding certain disclosures. ASU 2018-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2019. An entity is permitted to early adopt by modifying existing disclosures and delay adoption of the additional disclosures until the effective date. We are currently evaluating the impact of the adoption of this update on our consolidated financial statements and disclosures. |
Income Taxes | For income tax purposes, we recognize revenue associated with our 220 CPS project using the percentage of completion method. |
Redeemable Noncontrolling Interests | Redeemable noncontrolling interests on Vornado’s consolidated balance sheets and redeemable partnership units on the consolidated balance sheets of the Operating Partnership are primarily comprised of Class A Operating Partnership units held by third parties and are recorded at the greater of their carrying amount or redemption value at the end of each reporting period. Changes in the value from period to period are charged to “additional capital” in Vornado’s consolidated statements of changes in equity and to “partners’ capital” on the consolidated balance sheets of the Operating Partnership. Redeemable noncontrolling interests/redeemable partnership units exclude our Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units, as they are accounted for as liabilities in accordance with ASC Topic 480, Distinguishing Liabilities and Equity , because of their possible settlement by issuing a variable number of Vornado common shares. |
Fair Value Measurement | 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; 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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Sources by Segment | Below is a summary of our revenues by segment. Base rent, operating expense reimbursements and lease terminations represent revenues from leases and are recognized in accordance with ASC Topic 840, Leases . Revenues from Hotel Pennsylvania, trade shows, tenant services, BMS cleaning fees, management and leasing fees and other income represent revenues recognized in accordance with ASC 606. Additional financial information related to these reportable segments for the three and nine months ended September 30, 2018 and 2017 is set forth in Note 23 - Segment Information . (Amounts in thousands) For the Three Months Ended September 30, 2018 For the Three Months Ended September 30, 2017 Total New York Other Total New York Other Base rent $ 403,029 $ 339,939 $ 63,090 $ 398,734 $ 339,717 $ 59,017 Hotel Pennsylvania 26,088 26,088 — 25,421 25,421 — Trade shows 8,443 — 8,443 7,907 — 7,907 Property rentals 437,560 366,027 71,533 432,062 365,138 66,924 Operating expense reimbursements 50,760 47,361 3,399 47,462 43,796 3,666 Tenant services 15,627 11,696 3,931 15,939 12,188 3,751 Tenant expense reimbursements 66,387 59,057 7,330 63,401 55,984 7,417 BMS cleaning fees 28,873 31,328 (2,455 ) (1) 26,429 28,155 (1,726 ) (1) Management and leasing fees 4,734 4,439 295 2,330 2,101 229 Lease termination fees 356 58 298 991 984 7 Other income 4,138 1,537 2,601 3,542 1,247 2,295 Fee and other income 38,101 37,362 739 33,292 32,487 805 Total revenues $ 542,048 $ 462,446 $ 79,602 $ 528,755 $ 453,609 $ 75,146 (Amounts in thousands) For the Nine Months Ended September 30, 2018 For the Nine Months Ended September 30, 2017 Total New York Other Total New York Other Base rent $ 1,215,520 $ 1,027,697 $ 187,823 $ 1,175,692 $ 999,875 $ 175,817 Hotel Pennsylvania 67,842 67,842 — 63,047 63,047 — Trade shows 38,903 — 38,903 36,858 — 36,858 Property rentals 1,322,265 1,095,539 226,726 1,275,597 1,062,922 212,675 Operating expense reimbursements 143,412 132,443 10,969 132,828 122,247 10,581 Tenant services 41,597 31,854 9,743 41,263 32,817 8,446 Tenant expense reimbursements 185,009 164,297 20,712 174,091 155,064 19,027 BMS cleaning fees 88,095 94,888 (6,793 ) (1) 75,925 80,895 (4,970 ) (1) Management and leasing fees 10,205 9,384 821 7,382 6,593 789 Lease termination fees 1,505 766 739 5,947 5,773 174 Other income 13,224 4,608 8,616 8,958 5,463 3,495 Fee and other income 113,029 109,646 3,383 98,212 98,724 (512 ) Total revenues $ 1,620,303 $ 1,369,482 $ 250,821 $ 1,547,900 $ 1,316,710 $ 231,190 ____________________ (1) Represents the elimination of intercompany fees from the New York segment upon consolidation. |
Real Estate Fund Investments (T
Real Estate Fund Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate Fund Investments [Abstract] | |
Schedule Of Income And Loss From The Fund | Below is a summary of loss from the Fund and the Crowne Plaza Joint Venture for the three and nine months ended September 30, 2018 and 2017 . (Amounts in thousands) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Net investment income $ 3,093 $ 6,028 $ 6,366 $ 16,888 Net unrealized loss on held investments (3,283 ) (11,220 ) (32,796 ) (28,860 ) Net realized gain (loss) on exited investments — 35,620 (913 ) 35,861 Previously recorded unrealized gain on exited investment — (36,736 ) — (25,538 ) Transfer Tax — — (10,630 ) — Loss from real estate fund investments (190 ) (6,308 ) (37,973 ) (1,649 ) Less (income) loss attributable to noncontrolling interests in consolidated subsidiaries (558 ) (1,486 ) 34,338 (9,684 ) Loss from real estate fund investments attributable to the Operating Partnership (748 ) (7,794 ) (3,635 ) (11,333 ) Less loss attributable to noncontrolling interests in the Operating Partnership 46 485 224 706 Loss from real estate fund investments attributable to Vornado $ (702 ) $ (7,309 ) $ (3,411 ) $ (10,627 ) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Marketable Securities [Abstract] | |
Unrealized Gain (Loss) on Investments | Below is a summary of our marketable securities portfolio as of September 30, 2018 and December 31, 2017 . (Amounts in thousands) Fair Value at (Decrease) Increase September 30, 2018 December 31, 2017 in Fair Value (1) Equity securities: Lexington Realty Trust $ 153,292 $ 178,226 $ (24,934 ) Other 4,659 4,526 133 $ 157,951 $ 182,752 $ (24,801 ) ____________________ (1) The decrease in fair value of our marketable securities for the nine months ended September 30, 2018 is included in “interest and other investment income, net” on our consolidated statements of income (see Note 19 - Interest and Other Investment Income, Net ). |
Investments in Partially Owne_2
Investments in Partially Owned Entities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Below is a schedule summarizing our investments in partially owned entities. (Amounts in thousands) Percentage Ownership at Balance as of September 30, 2018 December 31, 2017 Investments: Partially owned office buildings/land (1) Various $ 502,826 $ 504,393 Alexander’s 32.4% 111,842 126,400 PREIT 7.9% 61,514 66,572 UE 4.5% 45,398 46,152 Other investments (2) Various 187,860 313,312 $ 909,440 $ 1,056,829 330 Madison Avenue (3) 25.0% $ (57,935 ) $ (53,999 ) 7 West 34th Street (4) 53.0% (49,647 ) (47,369 ) $ (107,582 ) $ (101,368 ) ____________________ (1) Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 512 West 22nd Street, 85 Tenth Avenue, 61 Ninth Avenue and others. (2) Includes interests in Independence Plaza, Fashion Centre Mall/Washington Tower, Rosslyn Plaza, 50-70 West 93rd Street, Moynihan Office Building and others. (3) Our negative basis resulted from a refinancing distribution and is included in “other liabilities” on our consolidated balance sheets. (4) Our negative basis resulted from a deferred gain from the sale of a 47.0% ownership interest in the property on May 27, 2016 and is included in “other liabilities” on our consolidated balance sheets. Below is a schedule of net income (loss) from partially owned entities. (Amounts in thousands) Percentage For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Our share of net income (loss): Alexander's (see page 26 for details): Equity in net income (1) 32.4% $ 4,278 $ 6,510 $ 7,215 $ 20,092 Management, leasing and development fees 1,149 1,335 3,378 4,351 5,427 7,845 10,593 24,443 UE (see page 26 for details): Equity in net income (2) 4.5% 2,696 5,908 3,017 25,793 Management, leasing and development fees 67 100 217 518 2,763 6,008 3,234 26,311 Partially owned office buildings (3) Various 735 (967 ) (1,546 ) 79 PREIT (see page 26 for details) (4) 7.9% (616 ) (49,748 ) (2,113 ) (53,480 ) Other investments (5) Various (1,103 ) (4,939 ) (4,109 ) 8,225 $ 7,206 $ (41,801 ) $ 6,059 $ 5,578 ____________________ (1) The three and nine months ended September 30, 2018 include our $1,085 share of a non-cash straight-line rent write-off adjustment related to Sears Roebuck and Co. which filed for Chapter 11 bankruptcy relief and our $518 share of Alexander’s litigation expense due to a settlement. The nine months ended September 30, 2018 also includes our $7,708 share of Alexander's potential additional Transfer Tax, our $3,162 share of higher interest expense due to an increase in average LIBOR and higher average mortgage balances due to a refinancing and our $1,802 share of expense related to the change in fair value of marketable securities held by Alexander’s. (2) The three and nine months ended September 30, 2017 include $5,200 and $21,100 , respectively, of net gain resulting from UE operating partnership unit issuances. (3) Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 7 West 34th Street, 330 Madison Avenue, 512 West 22nd Street, 85 Tenth Avenue and others. The nine month period ended September 30, 2018 includes our $4,978 share of potential additional Transfer Tax related to the March 2011 acquisition of One Park Avenue (see Note 6 - Real Estate Fund Investments ). (4) The three and nine months ended September 30, 2017 include a $44,465 non-cash impairment loss. (5) Includes interests in Independence Plaza, Fashion Centre Mall/Washington Tower, Rosslyn Plaza, 50-70 West 93rd Street, 666 Fifth Avenue Office Condominium (sold on August 3, 2018) and others. In the nine months ended September 30, 2017, we recognized $26,687 of net gains, comprised of $15,314 representing our share of a net gain on the sale of Suffolk Downs and $11,373 representing the net gain on repayment of our debt investments in Suffolk Downs JV. |
Dispositions (Tables)
Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule Of Assets And Liabilities And Results Of Operations Related To Discontinued Operations | The tables below set forth the assets and liabilities related to discontinued operations as of September 30, 2018 and December 31, 2017 , and their combined results of operations and cash flows for the three and nine months ended September 30, 2018 and 2017 . (Amounts in thousands) Balance as of September 30, 2018 December 31, 2017 Assets related to discontinued operations: Other assets $ 74 $ 1,357 Liabilities related to discontinued operations: Other liabilities $ 205 $ 3,620 (Amounts in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Income (loss) from discontinued operations: Total revenues $ 174 $ 25,747 $ 867 $ 260,969 Total expenses 113 21,708 1,104 211,930 61 4,039 (237 ) 49,039 JBG SMITH Properties ("JBGS") spin-off transaction costs — (53,581 ) — (67,045 ) Additional net gains on sale of real estate — 1,530 618 3,797 Income from partially-owned entities — 93 — 435 Pretax income (loss) from discontinued operations 61 (47,919 ) 381 (13,774 ) Income tax expense — (11 ) — (727 ) Income (loss) from discontinued operations $ 61 $ (47,930 ) $ 381 $ (14,501 ) (Amounts in thousands) For the Nine Months Ended September 30, 2018 2017 Cash flows related to discontinued operations: Cash flows from operating activities $ (1,751 ) $ 39,581 Cash flows from investing activities — (48,377 ) |
Identified Intangible Assets _2
Identified Intangible Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Finite-Lived Intangible Assets and Liabilities | |
Schedule of Identified Intangible Assets and Intangible Liabilities | The following summarizes our identified intangible assets (primarily above-market leases) and liabilities (primarily acquired below-market leases) as of September 30, 2018 and December 31, 2017 . (Amounts in thousands) Balance as of September 30, 2018 December 31, 2017 Identified intangible assets: Gross amount $ 307,855 $ 310,097 Accumulated amortization (167,861 ) (150,837 ) Total, net $ 139,994 $ 159,260 Identified intangible liabilities (included in deferred revenue): Gross amount $ 508,468 $ 530,497 Accumulated amortization (338,665 ) (324,897 ) Total, net $ 169,803 $ 205,600 |
Below Market Leases Net Of Above Market Leases | |
Finite-Lived Intangible Assets and Liabilities | |
Schedule of future amortization expense of intangible assets | Estimated annual amortization of acquired below-market leases, net of acquired above-market leases, for each of the five succeeding years commencing January 1, 2019 is as follows: (Amounts in thousands) 2019 $ 25,115 2020 24,047 2021 19,313 2022 16,173 2023 13,496 |
Other Identified Intangible Assets | |
Finite-Lived Intangible Assets and Liabilities | |
Schedule of future amortization expense of intangible assets | Estimated annual amortization of all other identified intangible assets including acquired in-place leases, customer relationships, and third party contracts for each of the five succeeding years commencing January 1, 2019 is as follows: (Amounts in thousands) 2019 $ 12,902 2020 12,817 2021 11,838 2022 10,286 2023 10,158 |
Tenant Under Ground Leases | |
Finite-Lived Intangible Assets and Liabilities | |
Schedule of future amortization expense of intangible assets | Estimated annual amortization of these below-market leases, net of above-market leases, for each of the five succeeding years commencing January 1, 2019 is as follows: (Amounts in thousands) 2019 $ 1,747 2020 1,747 2021 1,747 2022 1,747 2023 1,747 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following is a summary of our debt: (Amounts in thousands) Interest Rate at Balance as of September 30, 2018 December 31, 2017 Mortgages Payable: Fixed rate 3.53% $ 5,006,360 $ 5,461,706 Variable rate 3.99% 3,165,760 2,742,133 Total 3.71% 8,172,120 8,203,839 Deferred financing costs, net and other (53,045 ) (66,700 ) Total, net $ 8,119,075 $ 8,137,139 Unsecured Debt: Senior unsecured notes 4.21% $ 850,000 $ 850,000 Deferred financing costs, net and other (6,290 ) (6,386 ) Senior unsecured notes, net 843,710 843,614 Unsecured term loan 3.39% 750,000 750,000 Deferred financing costs, net and other (126 ) (1,266 ) Unsecured term loan, net 749,874 748,734 Unsecured revolving credit facilities 3.15% 80,000 — Total, net $ 1,673,584 $ 1,592,348 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests / Redeemable Partnership Units (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Summary Of Activity Of Redeemable Noncontrolling Interests | (Amounts in thousands) Balance, December 31, 2016 $ 1,278,446 Net income 9,057 Other comprehensive income 188 Distributions (25,663 ) Redemption of Class A units for Vornado common shares, at redemption value (34,564 ) Adjustments to carry redeemable Class A units at redemption value (including $224,069 attributable to the spin-off of JBGS) (286,928 ) Other, net 30,168 Balance, September 30, 2017 $ 970,704 Balance, December 31, 2017 $ 984,937 Net income 18,992 Other comprehensive income 913 Distributions (23,867 ) Redemption of Class A units for Vornado common shares, at redemption value (14,089 ) Adjustments to carry redeemable Class A units at redemption value (57,970 ) Other, net 15,666 Balance, September 30, 2018 $ 924,582 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income ("AOCI") (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables set forth the changes in accumulated other comprehensive income by component. (Amounts in thousands) Total Marketable securities Pro rata share of nonconsolidated subsidiaries' OCI Interest rate swaps Other For the Three Months Ended September 30, 2018 Balance as of June 30, 2018 $ 33,351 $ — $ 2,834 $ 39,559 $ (9,042 ) Net current period OCI: OCI before reclassifications 822 — 253 623 (54 ) Amounts reclassified from AOCI — — — — — 822 — 253 623 (54 ) Balance as of September 30, 2018 $ 34,173 $ — $ 3,087 $ 40,182 $ (9,096 ) For the Three Months Ended September 30, 2017 Balance as of June 30, 2017 $ 115,839 $ 114,290 $ (3,821 ) $ 12,702 $ (7,332 ) Net current period OCI: OCI before reclassifications 6,608 5,656 (626 ) 1,976 (398 ) Amounts reclassified from AOCI (646 ) — (646 ) (1) — — 5,962 5,656 (1,272 ) 1,976 (398 ) Balance as of September 30, 2017 $ 121,801 $ 119,946 $ (5,093 ) $ 14,678 $ (7,730 ) For the Nine Months Ended September 30, 2018 Balance as of December 31, 2017 $ 128,682 $ 109,554 $ 3,769 $ 23,542 $ (8,183 ) Cumulative effect of accounting change (see Note 3) (108,374 ) (109,554 ) (1,671 ) 2,851 — Net current period OCI: OCI before reclassifications 13,865 — 989 13,789 (913 ) Amounts reclassified from AOCI — — — — — 13,865 — 989 13,789 (913 ) Balance as of September 30, 2018 $ 34,173 $ — $ 3,087 $ 40,182 $ (9,096 ) For the Nine Months Ended September 30, 2017 Balance as of December 31, 2016 $ 118,972 $ 130,505 $ (12,058 ) $ 8,066 $ (7,541 ) Net current period OCI: OCI before reclassifications (5,793 ) (10,559 ) (1,657 ) 6,612 (189 ) Amounts reclassified from AOCI 8,622 — 8,622 (1) — — 2,829 (10,559 ) 6,965 6,612 (189 ) Balance as of September 30, 2017 $ 121,801 $ 119,946 $ (5,093 ) $ 14,678 $ (7,730 ) ____________________ (1) Reclassified upon receipt of proceeds related to the sale of an investment by a nonconsolidated subsidiary. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Fair value, measurement inputs, disclosure | The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy as of September 30, 2018 and December 31, 2017 , respectively. (Amounts in thousands) As of September 30, 2018 Total Level 1 Level 2 Level 3 Marketable securities $ 157,951 $ 157,951 $ — $ — Real estate fund investments 369,767 — — 369,767 Deferred compensation plan assets ($10,233 included in restricted cash and $92,048 in other assets) 102,281 63,493 — 38,788 Interest rate swaps (included in other assets) 40,203 — 40,203 — Total assets $ 670,202 $ 221,444 $ 40,203 $ 408,555 Mandatorily redeemable instruments (included in other liabilities) $ 50,561 $ 50,561 $ — $ — (Amounts in thousands) As of December 31, 2017 Total Level 1 Level 2 Level 3 Marketable securities $ 182,752 $ 182,752 $ — $ — Real estate fund investments 354,804 — — 354,804 Deferred compensation plan assets ($11,545 included in restricted cash and $97,632 in other assets) 109,177 69,049 — 40,128 Interest rate swaps (included in other assets) 27,472 — 27,472 — Total assets $ 674,205 $ 251,801 $ 27,472 $ 394,932 Mandatorily redeemable instruments ($50,561 included in other liabilities) $ 520,561 $ 520,561 $ — $ — Interest rate swaps (included in other liabilities) 1,052 — 1,052 — Total liabilities $ 521,613 $ 520,561 $ 1,052 $ — |
Schedule of carrying amounts and fair values of financial instruments | The table below summarizes the carrying amounts and fair value of these financial instruments as of September 30, 2018 and December 31, 2017 . (Amounts in thousands) As of September 30, 2018 As of December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Cash equivalents $ 630,271 $ 630,000 $ 1,500,227 $ 1,500,000 Debt: Mortgages payable $ 8,172,120 $ 8,091,000 $ 8,203,839 $ 8,194,000 Senior unsecured notes 850,000 845,000 850,000 878,000 Unsecured term loan 750,000 750,000 750,000 750,000 Unsecured revolving credit facilities 80,000 80,000 — — Total $ 9,852,120 (1) $ 9,766,000 $ 9,803,839 (1) $ 9,822,000 ____________________ (1) Excludes $59,461 and $74,352 of deferred financing costs, net and other as of September 30, 2018 and December 31, 2017 , respectively. |
Real estate fund investments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Fair value inputs quantitative information | Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate fund investments as of September 30, 2018 and December 31, 2017 . Range Weighted Average (based on fair value of investments) Unobservable Quantitative Input September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Discount rates 10.0% to 15.0% 2.0% to 14.9% 13.2% 11.9% Terminal capitalization rates 5.3% to 6.4% 4.7% to 6.7% 5.6% 5.5% |
Summary of changes in level 3 plan assets | The table below summarizes the changes in the fair value of real estate fund investments that are classified as Level 3, for the three and nine months ended September 30, 2018 and 2017 . (Amounts in thousands) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Beginning balance $ 373,039 $ 455,692 $ 354,804 $ 462,132 Net unrealized loss on held investments (3,283 ) (11,220 ) (32,796 ) (28,860 ) Dispositions — (91,606 ) (20,291 ) (91,606 ) Previously recorded unrealized gain on exited investment — (36,736 ) — (25,538 ) Net realized gain (loss) on exited investments — 35,620 (913 ) 35,861 Purchases / additional fundings — — 68,950 — Other, net 11 — 13 (239 ) Ending balance $ 369,767 $ 351,750 $ 369,767 $ 351,750 |
Deferred Compensation Plan Assets | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Changes in the 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, for the three and nine months ended September 30, 2018 and 2017 . (Amounts in thousands) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Beginning balance $ 39,870 $ 49,849 $ 40,128 $ 57,444 Sales (3,304 ) (3,810 ) (6,813 ) (15,922 ) Purchases 1,576 2,176 3,209 3,989 Realized and unrealized gains 180 246 892 2,151 Other, net 466 823 1,372 1,622 Ending balance $ 38,788 $ 49,284 $ 38,788 $ 49,284 |
Interest and Other Investment I
Interest and Other Investment Income, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Interest and Other Income [Abstract] | |
Schedule Of Interest And Other Investment Income (Loss), Net | The following table sets forth the details of interest and other investment income, net: (Amounts in thousands) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 (Decrease) increase in fair value of marketable securities: Lexington Realty Trust $ (7,942 ) $ — $ (24,934 ) $ — Other 243 — 133 — (7,699 ) — (24,801 ) — Interest on cash and cash equivalents and restricted cash 4,306 1,636 12,370 4,264 Dividends on marketable securities 3,354 3,309 10,060 9,923 Interest on loans receivable (1) 2,004 754 8,952 3,599 Other, net 928 1,632 2,820 4,781 $ 2,893 $ 7,331 $ 9,401 $ 22,567 ____________________ (1) The three and nine months ended September 30, 2018 include $1,250 and $6,707 , respectively, of profit participation in connection with an investment in a mezzanine loan which was previously repaid to us. |
Interest and Debt Expense (Tabl
Interest and Debt Expense (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Interest and Debt Expense [Abstract] | |
Interest And Debt Expense | The following table sets forth the details of interest and debt expense: (Amounts in thousands) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Interest expense $ 98,841 $ 89,675 $ 290,006 $ 263,037 Amortization of deferred financing costs 8,348 7,977 24,486 24,523 Capitalized interest and debt expense (18,238 ) (12,584 ) (49,718 ) (34,979 ) $ 88,951 $ 85,068 $ 264,774 $ 252,581 |
Income (Loss) Per Share _Inco_2
Income (Loss) Per Share /Income (Loss) Per Class A Unit (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings per share | |
Schedule Of Earnings Per Share Basic And Diluted | Vornado Realty Trust The following table provides a reconciliation of both net income (loss) attributable to Vornado and the number of common shares used in the computation of (i) basic income (loss) per common share - which includes the weighted average number of common shares outstanding without regard to dilutive potential common shares, and (ii) diluted income (loss) per common share - which includes the weighted average common shares and dilutive share equivalents. Dilutive share equivalents may include our Series A convertible preferred shares, employee stock options, restricted stock awards and Out-Performance Plan awards. (Amounts in thousands, except per share amounts) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Numerator: Income from continuing operations, net of income attributable to noncontrolling interests $ 203,122 $ 32,050 $ 336,570 $ 196,684 Income (loss) from discontinued operations, net of income attributable to noncontrolling interests 57 (44,948 ) 357 (13,600 ) Net income (loss) attributable to Vornado 203,179 (12,898 ) 336,927 183,084 Preferred share dividends (12,534 ) (16,128 ) (38,103 ) (48,386 ) Preferred share issuance costs — — (14,486 ) — Net income (loss) attributable to common shareholders 190,645 (29,026 ) 284,338 134,698 Earnings allocated to unvested participating securities (17 ) (9 ) (33 ) (37 ) Numerator for basic income (loss) per share 190,628 (29,035 ) 284,305 134,661 Impact of assumed conversions: Convertible preferred share dividends 15 — 47 — Earnings allocated to Out-Performance Plan units — — 127 195 Numerator for diluted income (loss) per share $ 190,643 $ (29,035 ) $ 284,479 $ 134,856 Denominator: Denominator for basic income (loss) per share – weighted average shares 190,245 189,593 190,176 189,401 Effect of dilutive securities (1) : Employee stock options and restricted share awards 1,045 1,254 972 1,553 Convertible preferred shares 37 — 38 303 Out-Performance Plan units — — 106 — Denominator for diluted income (loss) per share – weighted average shares and assumed conversions 191,327 190,847 191,292 191,257 INCOME (LOSS) PER COMMON SHARE – BASIC: Income from continuing operations, net $ 1.00 $ 0.09 $ 1.50 $ 0.78 Loss from discontinued operations, net — (0.24 ) — (0.07 ) Net income (loss) per common share $ 1.00 $ (0.15 ) $ 1.50 $ 0.71 INCOME (LOSS) PER COMMON SHARE – DILUTED: Income from continuing operations, net $ 1.00 $ 0.09 $ 1.49 $ 0.78 Loss from discontinued operations, net — (0.24 ) — (0.07 ) Net income (loss) per common share $ 1.00 $ (0.15 ) $ 1.49 $ 0.71 ____________________ (1) The effect of dilutive securities for the three months ended September 30, 2018 and 2017 excludes an aggregate of 12,372 and 12,413 weighted average common share equivalents, respectively, and 12,220 and 12,173 weighted average common share equivalents for the nine months ended September 30, 2018 and 2017 , respectively, as their effect was anti-dilutive. |
Vornado Realty L.P. | |
Earnings per share | |
Schedule Of Earnings Per Share Basic And Diluted | Vornado Realty L.P. The following table provides a reconciliation of both net income (loss) attributable to Vornado Realty L.P. and the number of Class A units used in the computation of (i) basic income (loss) per Class A unit - which includes the weighted average number of Class A units outstanding without regard to dilutive potential Class A units, and (ii) diluted income (loss) per Class A unit - which includes the weighted average Class A units and dilutive unit equivalents. Dilutive unit equivalents may include our Series A convertible preferred units, Vornado stock options, restricted unit awards and Out-Performance Plan awards. (Amounts in thousands, except per unit amounts) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Numerator: Income from continuing operations, net of income attributable to noncontrolling interests in consolidated subsidiaries $ 215,789 $ 33,154 $ 355,538 $ 206,642 Income (loss) from discontinued operations 61 (47,930 ) 381 (14,501 ) Net income (loss) attributable to Vornado Realty L.P. 215,850 (14,776 ) 355,919 192,141 Preferred unit distributions (12,582 ) (16,176 ) (38,248 ) (48,531 ) Preferred unit issuance costs — — (14,486 ) — Net income (loss) attributable to Class A unitholders 203,268 (30,952 ) 303,185 143,610 Earnings allocated to unvested participating securities (997 ) (740 ) (2,259 ) (2,499 ) Numerator for basic income (loss) per Class A unit 202,271 (31,692 ) 300,926 141,111 Impact of assumed conversions: Convertible preferred unit distributions 15 — 47 — Numerator for diluted income (loss) per Class A unit $ 202,286 $ (31,692 ) $ 300,973 $ 141,111 Denominator: Denominator for basic income (loss) per Class A unit – weighted average units 202,103 201,300 202,033 201,093 Effect of dilutive securities (1) : Vornado stock options and restricted unit awards 1,454 1,813 1,329 2,218 Convertible preferred units 37 — 38 — Denominator for diluted income (loss) per Class A unit – weighted average units and assumed conversions 203,594 203,113 203,400 203,311 INCOME (LOSS) PER CLASS A UNIT – BASIC: Income from continuing operations, net $ 1.00 $ 0.08 $ 1.49 $ 0.77 Loss from discontinued operations, net — (0.24 ) — (0.07 ) Net income (loss) per Class A unit $ 1.00 $ (0.16 ) $ 1.49 $ 0.70 INCOME (LOSS) PER CLASS A UNIT – DILUTED: Income from continuing operations, net $ 0.99 $ 0.08 $ 1.48 $ 0.76 Loss from discontinued operations, net — (0.24 ) — (0.07 ) Net income (loss) per Class A unit $ 0.99 $ (0.16 ) $ 1.48 $ 0.69 ____________________ (1) The effect of dilutive securities for the three months ended September 30, 2018 and 2017 excludes an aggregate of 105 and 147 weighted average Class A unit equivalents, respectively, and 112 and 118 weighted average Class A unit equivalents for the nine months ended September 30, 2018 and 2017 , respectively, as their effect was anti-dilutive. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Below is a reconciliation of net income (loss) to NOI at share and NOI at share - cash basis for three and nine months ended September 30, 2018 and 2017 . (Amounts in thousands) For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Net income (loss) $ 219,162 $ (10,754 ) $ 324,782 $ 210,577 Deduct: (Income) loss from partially owned entities (7,206 ) 41,801 (6,059 ) (5,578 ) Loss from real estate fund investments 190 6,308 37,973 1,649 Interest and other investment income, net (2,893 ) (7,331 ) (9,401 ) (22,567 ) Net gains on disposition of wholly owned and partially owned assets (141,269 ) — (164,828 ) (501 ) (Income) loss from discontinued operations (61 ) 47,930 (381 ) 14,501 NOI attributable to noncontrolling interests in consolidated subsidiaries (16,943 ) (16,171 ) (51,415 ) (48,778 ) Add: Depreciation and amortization expense 113,169 104,972 333,701 315,223 General and administrative expense 31,977 34,286 108,937 115,866 Transaction related costs and other 2,510 61 16,683 1,073 Our share of NOI from partially owned entities 60,094 66,876 193,359 199,989 Interest and debt expense 88,951 85,068 264,774 252,581 Income tax expense 1,943 1,188 4,964 3,491 NOI at share 349,624 354,234 1,053,089 1,037,526 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (8,743 ) (22,307 ) (39,172 ) (65,263 ) NOI at share - cash basis $ 340,881 $ 331,927 $ 1,013,917 $ 972,263 23 . Segment Information - continued Below is a summary of NOI at share and NOI at share - cash basis by segment for the three and nine months ended September 30, 2018 and 2017 . (Amounts in thousands) For the Three Months Ended September 30, 2018 Total New York Other Total revenues $ 542,048 $ 462,446 $ 79,602 Operating expenses 235,575 200,949 34,626 NOI - consolidated 306,473 261,497 44,976 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (16,943 ) (11,348 ) (5,595 ) Add: Our share of NOI from partially owned entities 60,094 47,179 12,915 NOI at share 349,624 297,328 52,296 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (8,743 ) (9,125 ) 382 NOI at share - cash basis $ 340,881 $ 288,203 $ 52,678 (Amounts in thousands) For the Three Months Ended September 30, 2017 Total New York Other Total revenues $ 528,755 $ 453,609 $ 75,146 Operating expenses 225,226 192,430 32,796 NOI - consolidated 303,529 261,179 42,350 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (16,171 ) (11,464 ) (4,707 ) Add: Our share of NOI from partially owned entities 66,876 48,779 18,097 NOI at share 354,234 298,494 55,740 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (22,307 ) (21,092 ) (1,215 ) NOI at share - cash basis $ 331,927 $ 277,402 $ 54,525 (Amounts in thousands) For the Nine Months Ended September 30, 2018 Total New York Other Total revenues $ 1,620,303 $ 1,369,482 $ 250,821 Operating expenses 709,158 599,768 109,390 NOI - consolidated 911,145 769,714 141,431 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (51,415 ) (34,653 ) (16,762 ) Add: Our share of NOI from partially owned entities 193,359 146,730 46,629 NOI at share 1,053,089 881,791 171,298 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (39,172 ) (39,161 ) (11 ) NOI at share - cash basis $ 1,013,917 $ 842,630 $ 171,287 (Amounts in thousands) For the Nine Months Ended September 30, 2017 Total New York Other Total revenues $ 1,547,900 $ 1,316,710 $ 231,190 Operating expenses 661,585 561,249 100,336 NOI - consolidated 886,315 755,461 130,854 Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries (48,778 ) (34,251 ) (14,527 ) Add: Our share of NOI from partially owned entities 199,989 140,627 59,362 NOI at share 1,037,526 861,837 175,689 Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other (65,263 ) (57,761 ) (7,502 ) NOI at share - cash basis $ 972,263 $ 804,076 $ 168,187 |
Organization (Narrative) (Detai
Organization (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Common limited partnership interest in the Operating Partnership | 93.50% |
Basis of Presentation (Narrativ
Basis of Presentation (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Basis of Presentation [Line Items] | ||||
Expense (income) from deferred compensation plan liability | $ 1,861 | $ 1,975 | $ 3,534 | $ 5,233 |
Income (loss) from deferred compensation plan assets | $ 1,861 | $ 1,975 | $ 3,534 | 5,233 |
General and Administrative Expense | ||||
Basis of Presentation [Line Items] | ||||
Unincorporated business tax | $ 1,062 |
Recently Issued Accounting Li_3
Recently Issued Accounting Literature (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting change | $ 14,519 | |||||
Earnings less than distributions | $ (4,135,602) | $ (4,135,602) | $ (4,183,253) | |||
Increase (decrease) in fair value of marketable securities | (7,699) | $ 0 | (24,801) | $ 0 | ||
Accounting Standards Update 2016-01 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Earnings less than distributions | $ (111,225) | |||||
Increase (decrease) in fair value of marketable securities | (7,699) | (24,801) | ||||
Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Capitalized leasing costs | $ 1,444 | $ 3,883 | $ 1,280 | $ 3,494 | ||
Retained Earnings | Accounting Standards Update 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting change | $ 14,519 |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Disaggregation of Revenue [Line Items] | ||||||
Cumulative effect of accounting change | $ 14,519 | |||||
Number of reportable segments | segment | 2 | |||||
Base rent (included in property rentals) | $ 403,029 | $ 398,734 | $ 1,215,520 | $ 1,175,692 | ||
Property rentals | 437,560 | 432,062 | 1,322,265 | 1,275,597 | ||
Operating expense reimbursements | 50,760 | 47,462 | 143,412 | 132,828 | ||
Tenant services | 15,627 | 15,939 | 41,597 | 41,263 | ||
Tenant expense reimbursements | 66,387 | 63,401 | 185,009 | 174,091 | ||
BMS cleaning fees | 28,873 | 26,429 | 88,095 | 75,925 | ||
Management and leasing fees | 4,734 | 2,330 | 10,205 | 7,382 | ||
Lease termination fees | 356 | 991 | 1,505 | 5,947 | ||
Fee and other income | 38,101 | 33,292 | 113,029 | 98,212 | ||
Hotel Pennsylvania | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Property rentals | 26,088 | 25,421 | 67,842 | 63,047 | ||
Trade Shows | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Property rentals | 8,443 | 7,907 | 38,903 | 36,858 | ||
Real Estate, Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Other income | 4,138 | 3,542 | 13,224 | 8,958 | ||
Real Estate | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 542,048 | 528,755 | 1,620,303 | 1,547,900 | ||
New York | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Base rent (included in property rentals) | 339,939 | 339,717 | 1,027,697 | 999,875 | ||
Property rentals | 366,027 | 365,138 | 1,095,539 | 1,062,922 | ||
Operating expense reimbursements | 47,361 | 43,796 | 132,443 | 122,247 | ||
Tenant services | 11,696 | 12,188 | 31,854 | 32,817 | ||
Tenant expense reimbursements | 59,057 | 55,984 | 164,297 | 155,064 | ||
BMS cleaning fees | 31,328 | 28,155 | 94,888 | 80,895 | ||
Management and leasing fees | 4,439 | 2,101 | 9,384 | 6,593 | ||
Lease termination fees | 58 | 984 | 766 | 5,773 | ||
Fee and other income | 37,362 | 32,487 | 109,646 | 98,724 | ||
New York | Hotel Pennsylvania | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Property rentals | 26,088 | 25,421 | 67,842 | 63,047 | ||
New York | Trade Shows | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Property rentals | 0 | 0 | 0 | 0 | ||
New York | Real Estate, Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Other income | 1,537 | 1,247 | 4,608 | 5,463 | ||
New York | Real Estate | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 462,446 | 453,609 | 1,369,482 | 1,316,710 | ||
Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Base rent (included in property rentals) | 63,090 | 59,017 | 187,823 | 175,817 | ||
Property rentals | 71,533 | 66,924 | 226,726 | 212,675 | ||
Operating expense reimbursements | 3,399 | 3,666 | 10,969 | 10,581 | ||
Tenant services | 3,931 | 3,751 | 9,743 | 8,446 | ||
Tenant expense reimbursements | 7,330 | 7,417 | 20,712 | 19,027 | ||
BMS cleaning fees | (2,455) | (1,726) | (6,793) | (4,970) | ||
Management and leasing fees | 295 | 229 | 821 | 789 | ||
Lease termination fees | 298 | 7 | 739 | 174 | ||
Fee and other income | 739 | 805 | 3,383 | (512) | ||
Other | Hotel Pennsylvania | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Property rentals | 0 | 0 | 0 | 0 | ||
Other | Trade Shows | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Property rentals | 8,443 | 7,907 | 38,903 | 36,858 | ||
Other | Real Estate, Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Other income | 2,601 | 2,295 | 8,616 | 3,495 | ||
Other | Real Estate | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | $ 79,602 | $ 75,146 | $ 250,821 | $ 231,190 | ||
Accounting Standards Update 2014-09 | Retained Earnings | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Cumulative effect of accounting change | $ 14,519 |
Acquisitions (Details)
Acquisitions (Details) ft² in Thousands, $ in Thousands | Sep. 21, 2018USD ($)ft²seatft | Feb. 09, 2018USD ($)ft² | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Jul. 30, 2012USD ($) |
Business Acquisition [Line Items] | |||||
Distributions of capital from partially owned entities | $ | $ 500,225 | $ 11,841 | |||
537 West 26th Street | |||||
Business Acquisition [Line Items] | |||||
Area of land (in sq feet) | ft² | 14 | ||||
Area of additional zoning air rights (in sq feet) | ft² | 55 | ||||
Distributions of capital from partially owned entities | $ | $ 44,000 | ||||
Marquis Theater | 1535 Broadway | |||||
Business Acquisition [Line Items] | |||||
Capital lease | $ | $ 240,000 | ||||
Number of seats | seat | 1,611 | ||||
Retail Condominium | 1535 Broadway | |||||
Business Acquisition [Line Items] | |||||
Area of land (in sq feet) | ft² | 45 | ||||
Payments to acquire real estate | $ | $ 442,000 | ||||
Percentage of fee | 100.00% | ||||
Digital Sign | 1535 Broadway | |||||
Business Acquisition [Line Items] | |||||
Area of land (in sq feet) | ft² | 25 | ||||
Frontage length | ft | 330 |
Real Estate Fund Investments (N
Real Estate Fund Investments (Narrative) (Details) | Apr. 19, 2018USD ($)extension | Feb. 16, 2018USD ($) | Jan. 17, 2018USD ($) | Mar. 01, 2011USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)investment | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)investment |
Investment Holdings | |||||||||
Gain (loss) on sale of properties | $ 0 | $ 3,797,000 | |||||||
Loss from real estate fund investments | $ (190,000) | $ (6,308,000) | (37,973,000) | (1,649,000) | |||||
Income (loss) from partially owned entities | 7,206,000 | (41,801,000) | 6,059,000 | 5,578,000 | |||||
Number of investments held by fund | investment | 5 | ||||||||
Aggregate fair value of Real Estate Fund investments (in US Dollars) | $ 369,767,000 | $ 369,767,000 | $ 354,804,000 | ||||||
Crowne Plaza Times Square Hotel Joint Venture | |||||||||
Investment Holdings | |||||||||
Refinancing | $ 255,000,000 | ||||||||
Vornado Capital Partners Real Estate Fund | |||||||||
Investment Holdings | |||||||||
Equity method ownership percentage | 25.00% | 25.00% | |||||||
Term of the Fund, years | 8 years | ||||||||
Investment period for commitments of the Fund, years | 3 years | ||||||||
Investment fund expiration date | 2013-07 | ||||||||
Vornado Realty Trust | |||||||||
Investment Holdings | |||||||||
Unfunded commitments of fund | $ 16,119,000 | $ 16,119,000 | |||||||
Real estate fund investments | |||||||||
Investment Holdings | |||||||||
Real estate transfer tax | 0 | 0 | 10,630,000 | 0 | |||||
Loss from real estate fund investments | (190,000) | $ (6,308,000) | $ (37,973,000) | $ (1,649,000) | |||||
Number of investments held by fund | investment | 4 | ||||||||
Unfunded commitments of fund | $ 50,494,000 | $ 50,494,000 | |||||||
Eleven East 68th Street | |||||||||
Investment Holdings | |||||||||
Proceeds from the sale of real estate | $ 82,000,000 | ||||||||
Gain (loss) on sale of properties | $ 46,259,000 | ||||||||
One Park Avenue | |||||||||
Investment Holdings | |||||||||
Payments to acquire real estate | $ 394,000,000 | ||||||||
Real estate transfer tax | $ 3,000,000 | $ 4,978,000 | |||||||
State and Local Jurisdiction | One Park Avenue | |||||||||
Investment Holdings | |||||||||
Additional real estate transfer tax | $ 9,491,000 | ||||||||
Interest on real estate transfer tax | 6,764,000 | ||||||||
Real estate transfer tax and interest | 15,608,000 | ||||||||
Loss from real estate fund investments | 10,630,000 | ||||||||
Income (loss) from partially owned entities | $ 4,978,000 | ||||||||
Joint Venture | Crowne Plaza Times Square Hotel Joint Venture | |||||||||
Investment Holdings | |||||||||
Equity method ownership percentage | 57.10% | 57.10% | |||||||
Joint Venture | Crowne Plaza Times Square Hotel Joint Venture | Crowne Plaza Time Square Hotel | |||||||||
Investment Holdings | |||||||||
Ownership percentage by noncontrolling owners | 24.70% | 24.70% | |||||||
Joint Venture | Vornado Capital Partners Real Estate Fund | |||||||||
Investment Holdings | |||||||||
Equity method ownership percentage | 64.70% | ||||||||
Joint Venture | Vornado Realty Trust | |||||||||
Investment Holdings | |||||||||
Equity method ownership percentage | 30.30% | ||||||||
Joint Venture | Third Party | |||||||||
Investment Holdings | |||||||||
Equity method ownership percentage | 5.00% | ||||||||
Loans Due May 2020 | Crowne Plaza Times Square Hotel Joint Venture | |||||||||
Investment Holdings | |||||||||
Debt instrument, interest rate, stated percentage | 5.66% | 5.66% | |||||||
Loans Due December 2018 | Crowne Plaza Times Square Hotel Joint Venture | |||||||||
Investment Holdings | |||||||||
Refinancing | $ 310,000,000 | ||||||||
LIBOR | Loans Due May 2020 | Crowne Plaza Times Square Hotel Joint Venture | |||||||||
Investment Holdings | |||||||||
Spread Over LIBOR (in percentage) | 3.51% | ||||||||
Number of extensions | extension | 3 | ||||||||
Length of extension available | 1 year | ||||||||
LIBOR | Loans Due December 2018 | Crowne Plaza Times Square Hotel Joint Venture | |||||||||
Investment Holdings | |||||||||
Spread Over LIBOR (in percentage) | 2.80% | ||||||||
LIBOR | Interest Rate Cap | Loans Due May 2020 | Crowne Plaza Times Square Hotel Joint Venture | |||||||||
Investment Holdings | |||||||||
Spread Over LIBOR (in percentage) | 4.00% |
Real Estate Fund Investments (I
Real Estate Fund Investments (Income from the Fund and the Co-Investment) (Details) - USD ($) $ in Thousands | Mar. 01, 2011 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Details Of Income From Real Estate Funds | |||||
(Loss) from real estate fund investments | $ (190) | $ (6,308) | $ (37,973) | $ (1,649) | |
Less (income) loss attributable to noncontrolling interests in consolidated subsidiaries | (3,312) | (4,022) | 31,137 | (18,436) | |
Real estate fund investments | |||||
Details Of Income From Real Estate Funds | |||||
Net investment income | 3,093 | 6,028 | 6,366 | 16,888 | |
Net unrealized loss on held investments | (3,283) | (11,220) | (32,796) | (28,860) | |
Net realized gain (loss) on exited investments | 0 | 35,620 | (913) | 35,861 | |
Previously recorded unrealized gain on exited investment | 0 | (36,736) | 0 | (25,538) | |
Transfer Tax | 0 | 0 | (10,630) | 0 | |
(Loss) from real estate fund investments | (190) | (6,308) | (37,973) | (1,649) | |
Less (income) loss attributable to noncontrolling interests in consolidated subsidiaries | (558) | (1,486) | 34,338 | (9,684) | |
(Loss) from real estate fund investments attributable to the Operating Partnership (nine months ended September 30, 2018 includes $4,252 of loss related to One Park Avenue potential additional transfer taxes and reduction in carried interest) | (748) | (7,794) | (3,635) | (11,333) | |
Less loss attributable to noncontrolling interests in the Operating Partnership | 46 | 485 | 224 | 706 | |
Less loss attributable to noncontrolling interests in the Operating Partnership | $ (702) | $ (7,309) | (3,411) | $ (10,627) | |
One Park Avenue | |||||
Details Of Income From Real Estate Funds | |||||
Transfer Tax | $ (3,000) | (4,978) | |||
One Park Avenue | Real estate fund investments | |||||
Details Of Income From Real Estate Funds | |||||
(Loss) from real estate fund investments attributable to the Operating Partnership (nine months ended September 30, 2018 includes $4,252 of loss related to One Park Avenue potential additional transfer taxes and reduction in carried interest) | $ (4,252) |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Earnings less than distributions | $ (4,135,602) | $ (4,183,253) | |
Accounting Standards Update 2016-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Earnings less than distributions | $ (111,225) |
Marketable Securities (Marketab
Marketable Securities (Marketable securities portfolio) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Available-for-sale Securities | |||||
Fair Value | $ 157,951 | $ 157,951 | $ 182,752 | ||
Increase (decrease) in fair value of marketable securities | (7,699) | $ 0 | (24,801) | $ 0 | |
Lexington Realty Trust | |||||
Available-for-sale Securities | |||||
Fair Value | 153,292 | 153,292 | 178,226 | ||
Increase (decrease) in fair value of marketable securities | (24,934) | ||||
Other | |||||
Available-for-sale Securities | |||||
Fair Value | $ 4,659 | 4,659 | $ 4,526 | ||
Increase (decrease) in fair value of marketable securities | $ 133 |
Investments in Partially Owne_3
Investments in Partially Owned Entities (Alexander's Inc.) (Details) - Alexanders Inc - USD ($) $ / shares in Units, $ in Thousands | Apr. 05, 2018 | Nov. 30, 2012 | Sep. 30, 2018 |
Equity Method Investments And Income From Equity Method Investments | |||
Ownership common shares, investee (in shares) | 1,654,068 | ||
Equity method ownership percentage | 32.40% | ||
Closing share price (in dollars per share) | $ 343.30 | ||
Equity method investment fair value | $ 567,842 | ||
Excess of investee's fair value over carrying amount | 456,000 | ||
Excess of investee's carrying amount over equity in net assets | 39,093 | ||
Additional real estate transfer tax | $ 7,708 | ||
Kings Plaza Regional Shopping Center | |||
Equity Method Investments And Income From Equity Method Investments | |||
Real estate transfer tax | $ 3,971 | ||
Additional real estate transfer tax | $ 23,797 | ||
Vornado Realty Trust | |||
Equity Method Investments And Income From Equity Method Investments | |||
Equity method ownership percentage | 32.40% |
Investments in Partially Owne_4
Investments in Partially Owned Entities (Urban Edge Properties and PREIT) (Details) $ / shares in Units, $ in Thousands | Sep. 30, 2018USD ($)$ / sharesshares |
UE | |
Schedule Of Equity Method Investments | |
Equity method ownership percentage | 4.50% |
Closing share price (in dollars per share) | $ / shares | $ 22.08 |
Equity method investment fair value | $ 126,235,000 |
Excess of investee's fair value over carrying amount | $ 80,837 |
PREIT | |
Schedule Of Equity Method Investments | |
Ownership common shares, investee (in shares) | shares | 6,250,000 |
Equity method ownership percentage | 7.90% |
Closing share price (in dollars per share) | $ / shares | $ 9.46 |
Equity method investment fair value | $ 59,125 |
Excess of investee's fair value over carrying amount | 2,389 |
Excess of investee's carrying amount over equity in net assets | $ 36,096 |
Partnership Interest | UE | |
Schedule Of Equity Method Investments | |
Ownership common shares, investee (in shares) | shares | 5,717,184 |
Investments in Partially Owne_5
Investments in Partially Owned Entities (Independence Plaza, Toys R Us, 666 5th Avenue) (Details) | Aug. 03, 2018USD ($)ft | Jun. 11, 2018USD ($) | Dec. 31, 2012USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)buildingunit | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Schedule Of Equity Method Investments | ||||||||
Noncontrolling interests in subsidiaries | $ 3,312,000 | $ 4,022,000 | $ (31,137,000) | $ 18,436,000 | ||||
Net gains on disposition of wholly owned and partially owned assets | 141,269,000 | $ 0 | 164,828,000 | $ 501,000 | ||||
Mortgages payable, net | $ 8,119,075,000 | $ 8,119,075,000 | $ 8,137,139,000 | |||||
Independence Plaza | ||||||||
Schedule Of Equity Method Investments | ||||||||
Equity method ownership percentage | 50.10% | 50.10% | ||||||
Number of buildings | building | 3 | |||||||
Number of units | unit | 1,327 | |||||||
Real estate transfer tax | $ 1,730,000 | |||||||
Transfer tax | $ 13,103,000 | |||||||
Refinancing | $ 675,000,000 | |||||||
Interest rate, effective | 3.48% | |||||||
Proceeds from (repayments of) debt | $ 550,000,000 | |||||||
Net proceeds from debt | $ 55,618,000 | |||||||
Toys R Us | ||||||||
Schedule Of Equity Method Investments | ||||||||
Equity method ownership percentage | 32.50% | 32.50% | ||||||
Equity method investment, carrying amount | $ 0 | $ 0 | ||||||
Tax basis of investments, cost for income tax purposes | 420,000,000 | 420,000,000 | ||||||
Transaction Related Costs and Other | Independence Plaza | ||||||||
Schedule Of Equity Method Investments | ||||||||
Transfer tax paid | 13,103,000 | |||||||
Noncontrolling interests in subsidiaries | 6,538,000 | |||||||
Loans Maturing in July 2025 | Independence Plaza | ||||||||
Schedule Of Equity Method Investments | ||||||||
Debt term | 7 years | |||||||
Debt instrument, interest rate, stated percentage | 4.25% | |||||||
Office | 666 Fifth Avenue | ||||||||
Schedule Of Equity Method Investments | ||||||||
Equity method ownership percentage | 49.50% | |||||||
Net proceeds from debt | $ 55,244,000 | |||||||
Proceeds from the sale of real estate | 120,000,000 | |||||||
Net gains on disposition of wholly owned and partially owned assets | 134,032,000 | $ 7,308,000 | $ 7,308,000 | |||||
Gain on sale of properties, net | $ 244,000,000 | |||||||
Retail linear feet of frontage | ft | 125 |
Investments in Partially Owne_6
Investments in Partially Owned Entities (Summary of Investments) (Details) - USD ($) $ in Thousands | May 27, 2016 | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule Of Equity Method Investments | |||
Carrying amount of investments in partially owned entities | $ 909,440 | $ 1,056,829 | |
Other liabilities | |||
Schedule Of Equity Method Investments | |||
Carrying amount of investments in partially owned entities | $ (107,582) | (101,368) | |
7 West 34th Street | Other liabilities | |||
Schedule Of Equity Method Investments | |||
Equity method ownership percentage | 53.00% | ||
Carrying amount of investments in partially owned entities | $ (49,647) | (47,369) | |
Sale of ownership interest, percent | 47.00% | ||
330 Madison Avenue | Other liabilities | |||
Schedule Of Equity Method Investments | |||
Equity method ownership percentage | 25.00% | ||
Carrying amount of investments in partially owned entities | $ (57,935) | (53,999) | |
Partially Owned Office Buildings | |||
Schedule Of Equity Method Investments | |||
Carrying amount of investments in partially owned entities | $ 502,826 | 504,393 | |
Alexanders Inc | |||
Schedule Of Equity Method Investments | |||
Equity method ownership percentage | 32.40% | ||
Carrying amount of investments in partially owned entities | $ 111,842 | 126,400 | |
PREIT | |||
Schedule Of Equity Method Investments | |||
Equity method ownership percentage | 7.90% | ||
Carrying amount of investments in partially owned entities | $ 61,514 | 66,572 | |
UE | |||
Schedule Of Equity Method Investments | |||
Equity method ownership percentage | 4.50% | ||
Carrying amount of investments in partially owned entities | $ 45,398 | 46,152 | |
Other investments | |||
Schedule Of Equity Method Investments | |||
Carrying amount of investments in partially owned entities | $ 187,860 | $ 313,312 |
Investments in Partially Owne_7
Investments in Partially Owned Entities (Summary of Income (Loss) ) (Details) - USD ($) | Mar. 01, 2011 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Schedule Of Equity Method Investments | |||||
Our share of net income (loss) | $ 7,206,000 | $ (41,801,000) | $ 6,059,000 | $ 5,578,000 | |
Gain (loss) on sale of properties | $ 0 | 3,797,000 | |||
Alexanders Inc | |||||
Schedule Of Equity Method Investments | |||||
Equity method ownership percentage | 32.40% | 32.40% | |||
Equity in net income | $ 4,278,000 | 6,510,000 | $ 7,215,000 | 20,092,000 | |
Management, leasing and development fees | 1,149,000 | 1,335,000 | 3,378,000 | 4,351,000 | |
Our share of net income (loss) | $ 5,427,000 | 7,845,000 | $ 10,593,000 | 24,443,000 | |
UE | |||||
Schedule Of Equity Method Investments | |||||
Equity method ownership percentage | 4.50% | 4.50% | |||
Equity in net income | $ 2,696,000 | 5,908,000 | $ 3,017,000 | 25,793,000 | |
Management, leasing and development fees | 67,000 | 100,000 | 217,000 | 518,000 | |
Our share of net income (loss) | 2,763,000 | 6,008,000 | 3,234,000 | 26,311,000 | |
Gain from issuance of common operating partnership units | 5,200,000 | 21,100,000 | |||
Partially Owned Office Buildings | |||||
Schedule Of Equity Method Investments | |||||
Our share of net income (loss) | $ 735,000 | (967,000) | $ (1,546,000) | 79,000 | |
PREIT | |||||
Schedule Of Equity Method Investments | |||||
Equity method ownership percentage | 7.90% | 7.90% | |||
Equity in net income | 44,465,000 | ||||
Our share of net income (loss) | $ (616,000) | (49,748,000) | $ (2,113,000) | (53,480,000) | |
One Park Avenue | |||||
Schedule Of Equity Method Investments | |||||
Real estate transfer tax | $ 3,000,000 | 4,978,000 | |||
Other investments | |||||
Schedule Of Equity Method Investments | |||||
Our share of net income (loss) | (1,103,000) | (4,939,000) | (4,109,000) | $ 8,225,000 | |
Suffolk Downs | |||||
Schedule Of Equity Method Investments | |||||
Gain (loss) on sale of properties | 15,314,000 | ||||
Gain on debt investments | 11,373,000 | ||||
Gain recognized on the sale of property and repayment of debt | $ 26,687,000 | ||||
Alexanders Inc | |||||
Schedule Of Equity Method Investments | |||||
Chapter 11 bankruptcy relief | 1,085,000 | 1,085,000 | |||
Litigation settlement, expense | $ 518,000 | 518,000 | |||
Interest expense | 3,162,000 | ||||
Change in fair value of marketable securities | 1,802 | ||||
Alexanders Inc | Kings Plaza Regional Shopping Center | |||||
Schedule Of Equity Method Investments | |||||
Real estate transfer tax | $ 7,708,000 |
220 Central Park South - Narrat
220 Central Park South - Narrative (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)ft² | Sep. 30, 2018USD ($)ft² | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Real Estate [Line Items] | ||||
Land | $ 3,306,264 | $ 3,306,264 | $ 3,143,648 | |
Condominium units inventory | $ 307,552 | 307,552 | $ 0 | |
Cash payments for income taxes | $ 61,047 | $ 5,292 | ||
220 Central Park South | ||||
Real Estate [Line Items] | ||||
Square footage of real estate property | ft² | 397 | 397 | ||
Land | $ 515,400 | $ 515,400 | ||
Development costs | 1,400,000 | 1,400,000 | ||
Development costs expended | 1,100,000 | 1,100,000 | ||
Condominium units inventory | 307,552 | $ 307,552 | ||
Cash payments for income taxes | $ 52,200 | |||
Percent of condominium tower where construction has been substantially completed | 16.00% | 16.00% |
Dispositions - New York (Detail
Dispositions - New York (Details) - USD ($) $ in Thousands | Jun. 21, 2018 | Dec. 31, 2015 | Sep. 30, 2018 | Sep. 30, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) on sale of properties | $ 0 | $ 3,797 | ||
27 Washington North | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from the sale of real estate | $ 45,000 | |||
Gain (loss) on sale of properties | $ 23,559 | |||
Payments to acquire real estate | $ 20,000 |
Dispositions (Assets and liabil
Dispositions (Assets and liabilities related to dispositions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Dispositions | |||||
Other assets | $ 74 | $ 74 | $ 1,357 | ||
Other liabilities | 205 | 205 | $ 3,620 | ||
Income (loss) from discontinued operations: | |||||
Total revenues | 174 | $ 25,747 | 867 | $ 260,969 | |
Total expenses | 113 | 21,708 | 1,104 | 211,930 | |
Income from discontinued operations before net gain on sale of real estate | 61 | 4,039 | (237) | 49,039 | |
JBG SMITH Properties (JBGS) spin-off transaction costs | 0 | (53,581) | 0 | (67,045) | |
Additional net gains on sale of real estate | 0 | 1,530 | 618 | 3,797 | |
Income from partially-owned entities | 0 | 93 | 0 | 435 | |
Pretax income (loss) from discontinued operations | 61 | (47,919) | 381 | (13,774) | |
Income tax expense | 0 | (11) | 0 | (727) | |
Income (loss) from discontinued operations | $ 61 | $ (47,930) | 381 | (14,501) | |
Cash flows related to discontinued operations: | |||||
Cash flows from operating activities | (1,751) | 39,581 | |||
Cash flows from investing activities | $ 0 | $ (48,377) |
Identified Intangible Assets _3
Identified Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets and Liabilities | |||||
Gross amount | $ 307,855 | $ 307,855 | $ 310,097 | ||
Accumulated amortization | (167,861) | (167,861) | (150,837) | ||
Total, net | 139,994 | 139,994 | 159,260 | ||
Gross amount | 508,468 | 508,468 | 530,497 | ||
Accumulated amortization | (338,665) | (338,665) | (324,897) | ||
Total, net | 169,803 | 169,803 | $ 205,600 | ||
Below Market Leases Net Of Above Market Leases | |||||
Finite-Lived Intangible Assets and Liabilities | |||||
Increase to rental income | 10,373 | $ 11,054 | 31,480 | $ 34,758 | |
2,019 | 25,115 | 25,115 | |||
2,020 | 24,047 | 24,047 | |||
2,021 | 19,313 | 19,313 | |||
2,022 | 16,173 | 16,173 | |||
2,023 | 13,496 | 13,496 | |||
Other Identified Intangible Assets | |||||
Finite-Lived Intangible Assets and Liabilities | |||||
Amortization of Intangible Assets | 4,822 | 6,069 | 14,557 | 19,896 | |
2,019 | 12,902 | 12,902 | |||
2,020 | 12,817 | 12,817 | |||
2,021 | 11,838 | 11,838 | |||
2,022 | 10,286 | 10,286 | |||
2,023 | 10,158 | 10,158 | |||
Tenant Under Ground Leases | |||||
Finite-Lived Intangible Assets and Liabilities | |||||
Increase to rent expense | 437 | $ 437 | 1,310 | $ 1,310 | |
2,019 | 1,747 | 1,747 | |||
2,020 | 1,747 | 1,747 | |||
2,021 | 1,747 | 1,747 | |||
2,022 | 1,747 | 1,747 | |||
2,023 | $ 1,747 | $ 1,747 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) ft² in Thousands | Aug. 09, 2018USD ($)ft² | Aug. 08, 2018USD ($) | Jan. 05, 2018USD ($)ft² | Sep. 30, 2018 |
33-00 Northern Boulevard | Office | ||||
Debt Instrument | ||||
Refinancing | $ 100,000,000 | |||
Square footage of real estate property | ft² | 471 | |||
Debt term | 7 years | |||
Debt instrument, interest rate, stated percentage | 4.14% | |||
Proceeds from (repayments of) debt | $ 37,200,000 | |||
33-00 Northern Boulevard | Office | LIBOR | ||||
Debt Instrument | ||||
Spread Over LIBOR (in percentage) | 1.80% | |||
4 Union Square South | Retail | ||||
Debt Instrument | ||||
Refinancing | $ 120,000,000 | |||
Debt instrument, interest rate, stated percentage | 3.50% | |||
4 Union Square South | Retail | LIBOR | ||||
Debt Instrument | ||||
Spread Over LIBOR (in percentage) | 1.40% | 2.15% | ||
Mortgages | ||||
Debt Instrument | ||||
Interest rate, effective | 3.71% | |||
Mortgages | 33-00 Northern Boulevard | Office | ||||
Debt Instrument | ||||
Interest rate, effective | 4.43% | |||
Repayments of debt | $ 59,800,000 | |||
Maturing in 2025 | 33-00 Northern Boulevard | Retail | ||||
Debt Instrument | ||||
Square footage of real estate property | ft² | 206 | |||
Maturing in 2019 | 4 Union Square South | Retail | ||||
Debt Instrument | ||||
Refinancing | $ 113,000,000 |
Debt (Summary of Debt) (Details
Debt (Summary of Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument | ||
Deferred financing costs, net and other | $ (59,461) | $ (74,352) |
Mortgages payable, net | 8,119,075 | 8,137,139 |
Unsecured debt - Carrying amount | 843,710 | 843,614 |
Unsecured term loan, net | 749,874 | 748,734 |
Revolving credit facilities | 80,000 | 0 |
Unsecured debt and revolving credit facility | 1,673,584 | 1,592,348 |
Mortgages | ||
Debt Instrument | ||
Mortgages payable, gross | 8,172,120 | 8,203,839 |
Deferred financing costs, net and other | (53,045) | (66,700) |
Mortgages payable, net | $ 8,119,075 | 8,137,139 |
Interest rate, end of period (in percentage) | 3.71% | |
Mortgages | Fixed Rate | ||
Debt Instrument | ||
Mortgages payable, gross | $ 5,006,360 | 5,461,706 |
Interest rate, end of period (in percentage) | 3.53% | |
Mortgages | Variable Rate | ||
Debt Instrument | ||
Mortgages payable, gross | $ 3,165,760 | 2,742,133 |
Interest rate, end of period (in percentage) | 3.99% | |
Senior Unsecured Notes | ||
Debt Instrument | ||
Deferred financing costs, net and other | $ (6,290) | (6,386) |
Unsecured debt, gross | 850,000 | 850,000 |
Unsecured debt - Carrying amount | $ 843,710 | 843,614 |
Interest rate, end of period (in percentage) | 4.21% | |
Unsecured Term Loan | ||
Debt Instrument | ||
Deferred financing costs, net and other | $ (126) | (1,266) |
Unsecured debt, gross | 750,000 | 750,000 |
Unsecured term loan, net | $ 749,874 | 748,734 |
Interest rate, end of period (in percentage) | 3.39% | |
Unsecured Revolving Credit Facilities | ||
Debt Instrument | ||
Revolving credit facilities | $ 80,000 | $ 0 |
Interest rate, end of period (in percentage) | 3.15% |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests / Redeemable Partnership Units (Activity of Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Redeemable Noncontrolling Interests Rollforward | ||||
Balance as of December 31 | $ 984,937 | $ 1,278,446 | ||
Net income | $ 12,671 | $ (1,878) | 18,992 | 9,057 |
Other comprehensive income | 913 | 188 | ||
Distributions | (23,867) | (25,663) | ||
Other, net | 15,666 | 30,168 | ||
Balance as of June 30 | $ 924,582 | $ 970,704 | 924,582 | 970,704 |
Class A Unit | ||||
Redeemable Noncontrolling Interests Rollforward | ||||
Redemption of Class A units for Vornado common shares, at redemption value | (14,089) | (34,564) | ||
Adjustments to carry redeemable Class A units at redemption value (including $224,069 attributable to the spin-off of JBGS) | (57,970) | $ (286,928) | ||
JBGS | Class A Unit | ||||
Redeemable Noncontrolling Interests Rollforward | ||||
Adjustments to carry redeemable Class A units at redemption value (including $224,069 attributable to the spin-off of JBGS) | $ 224,069 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests / Redeemable Partnership Units (Narratives) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Redeemable Noncontrolling Interest | ||
Redeemable noncontrolling interest, equity, common, carrying amount | $ 919,154 | $ 979,509 |
Class A Unit | ||
Redeemable Noncontrolling Interest | ||
Redeemable noncontrolling interest, equity, common, carrying amount | 919,154 | 979,509 |
Cumulative Redeemable Preferred Unit | ||
Redeemable Noncontrolling Interest | ||
Fair value of Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units | $ 50,561 | $ 50,561 |
Shareholders' Equity_Partners_2
Shareholders' Equity/Partners' Capital - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 11, 2018 | Jan. 04, 2018 | Sep. 30, 2018 |
Class of Stock [Line Items] | |||
Preferred unit issuance costs | $ 15,149 | ||
Series G & I Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, redemption price per share | $ 25 | $ 25 | |
Preferred stock, redemption amount | 470,000 | ||
Preferred unit issuance costs | $ 14,486 | ||
Redeemable Preferred Stock | Series G Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate, percentage | 6.625% | 6.625% | |
Redeemable Preferred Stock | Series I Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, dividend rate, percentage | 6.625% | 6.625% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income ("AOCI") (AOCI by component) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance, value | $ 5,007,701 | $ 7,618,496 | |||
Cumulative effect of accounting change (see Note 3) | $ 14,519 | ||||
Ending balance, value | $ 5,037,509 | $ 5,287,573 | 5,037,509 | 5,287,573 | |
Interest rate swaps | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance, value | 39,559 | 12,702 | 23,542 | 8,066 | |
Cumulative effect of accounting change (see Note 3) | 2,851 | ||||
OCI before reclassifications | 623 | 1,976 | 13,789 | 6,612 | |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | |
Net current period OCI | 623 | 1,976 | 13,789 | 6,612 | |
Ending balance, value | 40,182 | 14,678 | 40,182 | 14,678 | |
Accumulated Other Comprehensive Income | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance, value | 33,351 | 115,839 | 128,682 | 118,972 | |
Cumulative effect of accounting change (see Note 3) | (108,374) | ||||
OCI before reclassifications | 822 | 6,608 | 13,865 | (5,793) | |
Amounts reclassified from AOCI | 0 | (646) | 0 | 8,622 | |
Net current period OCI | 822 | 5,962 | 13,865 | 2,829 | |
Ending balance, value | 34,173 | 121,801 | 34,173 | 121,801 | |
Marketable securities | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance, value | 0 | 114,290 | 109,554 | 130,505 | |
Cumulative effect of accounting change (see Note 3) | (109,554) | ||||
OCI before reclassifications | 0 | 5,656 | 0 | (10,559) | |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | |
Net current period OCI | 0 | 5,656 | 0 | (10,559) | |
Ending balance, value | 0 | 119,946 | 0 | 119,946 | |
Pro-rata share of nonconsolidated subsidiaries' OCI | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance, value | 2,834 | (3,821) | 3,769 | (12,058) | |
Cumulative effect of accounting change (see Note 3) | (1,671) | ||||
OCI before reclassifications | 253 | (626) | 989 | (1,657) | |
Amounts reclassified from AOCI | 0 | (646) | 0 | 8,622 | |
Net current period OCI | 253 | (1,272) | 989 | 6,965 | |
Ending balance, value | 3,087 | (5,093) | 3,087 | (5,093) | |
Other | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance, value | (9,042) | (7,332) | (8,183) | (7,541) | |
Cumulative effect of accounting change (see Note 3) | $ 0 | ||||
OCI before reclassifications | (54) | (398) | (913) | (189) | |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | |
Net current period OCI | (54) | (398) | (913) | (189) | |
Ending balance, value | $ (9,096) | $ (7,730) | $ (9,096) | $ (7,730) |
Variable Interest Entities ("_2
Variable Interest Entities ("VIEs") (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Unconsolidated VIEs | ||
Variable Interest Entities | ||
Net carrying amount of our investments in unconsolidated VIEs | $ 256,674 | $ 352,925 |
Consolidated VIEs | ||
Variable Interest Entities | ||
Variable interest entity, consolidated, carrying amount, assets | 3,572,362 | 3,561,062 |
Variable interest entity, consolidated, carrying amount, liabilities | $ 1,813,993 | $ 1,753,798 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Thousands | Jan. 11, 2018 | Jan. 04, 2018 | Sep. 30, 2018USD ($)investment | Dec. 31, 2017USD ($)investment |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||
Number of investments held by fund | investment | 5 | |||
Real estate fund investments | $ 369,767 | $ 354,804 | ||
Real estate fund investments | ||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||
Number of investments held by fund | investment | 4 | |||
Recurring | ||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||
Real estate fund investments | $ 369,767 | 354,804 | ||
Level 3 | Recurring | ||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||
Real estate fund investments | 369,767 | $ 354,804 | ||
Redeemable Preferred Stock | Series G Preferred Stock | ||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||
Preferred stock, dividend rate, percentage | 6.625% | 6.625% | ||
Redeemable Preferred Stock | Series I Preferred Stock | ||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||
Preferred stock, dividend rate, percentage | 6.625% | 6.625% | ||
Discounted Cash Flow Technique | Level 3 | Real estate fund investments | ||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||
Real estate fund investments | 369,767 | |||
Excess of fair value over cost | $ 44,203 | |||
Discounted Cash Flow Technique | Level 3 | Recurring | Minimum | ||||
Fair Value Inputs [Abstract] | ||||
Anticipated holding period of investments | 4 months | |||
Discounted Cash Flow Technique | Level 3 | Recurring | Maximum | ||||
Fair Value Inputs [Abstract] | ||||
Anticipated holding period of investments | 4 years 4 months |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Marketable securities | $ 157,951 | $ 182,752 |
Real estate fund investments | 369,767 | 354,804 |
Recurring | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Marketable securities | 157,951 | 182,752 |
Real estate fund investments | 369,767 | 354,804 |
Deferred compensation plan assets (included in restricted cash and other assets) | 102,281 | 109,177 |
Interest rate swaps (included in other assets) | 40,203 | 27,472 |
Total assets | 670,202 | 674,205 |
Mandatorily redeemable instruments (included in other liabilities) | 50,561 | 520,561 |
Interest rate swap (included in other liabilities) | 1,052 | |
Total liabilities | 521,613 | |
Recurring | Level 1 | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Marketable securities | 157,951 | 182,752 |
Real estate fund investments | 0 | 0 |
Deferred compensation plan assets (included in restricted cash and other assets) | 63,493 | 69,049 |
Interest rate swaps (included in other assets) | 0 | 0 |
Total assets | 221,444 | 251,801 |
Mandatorily redeemable instruments (included in other liabilities) | 50,561 | 520,561 |
Interest rate swap (included in other liabilities) | 0 | |
Total liabilities | 520,561 | |
Recurring | Level 2 | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Marketable securities | 0 | 0 |
Real estate fund investments | 0 | 0 |
Deferred compensation plan assets (included in restricted cash and other assets) | 0 | 0 |
Interest rate swaps (included in other assets) | 40,203 | 27,472 |
Total assets | 40,203 | 27,472 |
Mandatorily redeemable instruments (included in other liabilities) | 0 | 0 |
Interest rate swap (included in other liabilities) | 1,052 | |
Total liabilities | 1,052 | |
Recurring | Level 3 | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Marketable securities | 0 | 0 |
Real estate fund investments | 369,767 | 354,804 |
Deferred compensation plan assets (included in restricted cash and other assets) | 38,788 | 40,128 |
Interest rate swaps (included in other assets) | 0 | 0 |
Total assets | 408,555 | 394,932 |
Mandatorily redeemable instruments (included in other liabilities) | 0 | 0 |
Interest rate swap (included in other liabilities) | 0 | |
Total liabilities | 0 | |
Other Assets | Recurring | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Deferred compensation plan assets (included in restricted cash and other assets) | 92,048 | 97,632 |
Restricted Cash | Recurring | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Deferred compensation plan assets (included in restricted cash and other assets) | $ 10,233 | 11,545 |
Other liabilities | Recurring | ||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||
Mandatorily redeemable instruments (included in other liabilities) | $ 50,561 |
Fair Value Measurements (Unober
Fair Value Measurements (Unobervable Quantitative Input Ratios) (Details) - Recurring - Level 3 - Real estate fund investments | Sep. 30, 2018 | Dec. 31, 2017 |
Discount Rate | Minimum | ||
Unobservable Quantitative Input | ||
Real estate, measurement input | 0.100 | 0.020 |
Discount Rate | Maximum | ||
Unobservable Quantitative Input | ||
Real estate, measurement input | 0.150 | 0.149 |
Discount Rate | Weighted Average | ||
Unobservable Quantitative Input | ||
Real estate, measurement input | 0.132 | 0.119 |
Cap Rate | Minimum | ||
Unobservable Quantitative Input | ||
Real estate, measurement input | 0.053 | 0.047 |
Cap Rate | Maximum | ||
Unobservable Quantitative Input | ||
Real estate, measurement input | 0.064 | 0.067 |
Cap Rate | Weighted Average | ||
Unobservable Quantitative Input | ||
Real estate, measurement input | 0.056 | 0.055 |
Fair Value Measurements (Change
Fair Value Measurements (Changes in the Fair Value of Real Estate Fund Investments and Deferred Compensation Plan Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Real estate fund investments | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | $ 373,039 | $ 455,692 | $ 354,804 | $ 462,132 |
Net unrealized loss on held investments | (3,283) | (11,220) | (32,796) | (28,860) |
Dispositions | 0 | (91,606) | (20,291) | (91,606) |
Previously recorded unrealized gain on exited investment | 0 | (36,736) | 0 | (25,538) |
Net realized gain (loss) on exited investments | 0 | 35,620 | (913) | 35,861 |
Purchases / additional fundings | 0 | 0 | 68,950 | 0 |
Other, net | 11 | 0 | 13 | (239) |
Ending balance | 369,767 | 351,750 | 369,767 | 351,750 |
Deferred Compensation Plan Assets | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | 39,870 | 49,849 | 40,128 | 57,444 |
Sales | (3,304) | (3,810) | (6,813) | (15,922) |
Realized and unrealized gains | 180 | 246 | 892 | 2,151 |
Purchases / additional fundings | 1,576 | 2,176 | 3,209 | 3,989 |
Other, net | 466 | 823 | 1,372 | 1,622 |
Ending balance | $ 38,788 | $ 49,284 | $ 38,788 | $ 49,284 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying amounts and fair value of financial instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured revolving credit facilities | $ 80,000 | $ 0 |
Deferred financing costs, net and other | 59,461 | 74,352 |
Senior Unsecured Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured debt, gross | 850,000 | 850,000 |
Deferred financing costs, net and other | 6,290 | 6,386 |
Unsecured Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured debt, gross | 750,000 | 750,000 |
Deferred financing costs, net and other | 126 | 1,266 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | 630,271 | 1,500,227 |
Mortgages payable, gross | 8,172,120 | 8,203,839 |
Unsecured revolving credit facilities | 80,000 | 0 |
Debt instrument - Carrying amount | 9,852,120 | 9,803,839 |
Deferred financing costs, net and other | 59,461 | 74,352 |
Carrying Amount | Senior Unsecured Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured debt, gross | 850,000 | 850,000 |
Carrying Amount | Unsecured Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured debt, gross | 750,000 | 750,000 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | 9,766,000 | 9,822,000 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, fair value | 630,000 | 1,500,000 |
Unsecured revolving credit facilities | 80,000 | 0 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgages payable, gross | 8,091,000 | 8,194,000 |
Fair Value | Senior Unsecured Notes | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured debt, gross | 845,000 | 878,000 |
Fair Value | Unsecured Term Loan | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured debt, gross | $ 750,000 | $ 750,000 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) | Mar. 15, 2018USD ($)component | Jan. 12, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award | ||||||
Share-based compensation expense | $ 5,545,000 | $ 5,693,000 | $ 26,190,000 | $ 27,319,000 | ||
AO LTIP Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award | ||||||
Threshold level | 100.00% | |||||
Amortization Period | 4 years | 4 years | ||||
Period from grant date | 10 years | |||||
Grant-Date Fair Value | $ 3,484,000 | |||||
Amount expensed immediately | $ 622,000 | 2,862,000 | $ 2,862,000 | |||
Revised age limit for awards vesting criteria | 65 years | |||||
Revised age limit for vesting with years of service | 60 years | |||||
Years of service | 20 years | |||||
Special allocation (percent) | 10.00% | |||||
Special distribution (percent) | 10.00% | |||||
Out Performance Plan 2018 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award | ||||||
Amortization Period | 5 years | |||||
Grant-Date Fair Value | $ 10,283,000 | |||||
Amount expensed immediately | $ 8,040,000 | $ 2,243,000 | $ 2,243,000 | |||
Revised age limit for awards vesting criteria | 65 years | |||||
Revised age limit for vesting with years of service | 60 years | |||||
Years of service | 20 years | |||||
Out performance plan notional amount | $ 35,000,000 | |||||
Amount by which vornado underperforms the index (basis points) | 2.00% | |||||
Amount by which vornado underperforms the index, total (basis points) | 6.00% | |||||
Number of components of out performance plan | component | 2 | |||||
Relative | Out Performance Plan 2018 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award | ||||||
Required shareholder return under relative component | 3.00% | |||||
Percentage of shareholder return under which 50% of awards will be earned | 0.00% | |||||
Absolute | Out Performance Plan 2018 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award | ||||||
Duration of performance measurement period | 3 years | |||||
Required shareholder return three year | 21.00% | |||||
SNL US Office REIT Index | Relative | Out Performance Plan 2018 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award | ||||||
Required shareholder return per year | 70.00% | |||||
SNL US Retail Index | Relative | Out Performance Plan 2018 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award | ||||||
Required shareholder return per year | 30.00% | |||||
Maximum | Relative | Out Performance Plan 2018 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award | ||||||
Percentage awards will be reduced if TSR is zero or negative or Negative | 50.00% | |||||
Senior Executive | Out Performance Plan 2018 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award | ||||||
Out performance plan amount granted | $ 27,354,000 |
Interest and Other Investment_2
Interest and Other Investment Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net Investment Income [Line Items] | ||||
(Decrease) increase in fair value of marketable securities: | $ (7,699) | $ 0 | $ (24,801) | $ 0 |
Interest on cash and cash equivalents and restricted cash | 4,306 | 1,636 | 12,370 | 4,264 |
Dividends on marketable securities | 3,354 | 3,309 | 10,060 | 9,923 |
Interest on loans receivable | 2,004 | 754 | 8,952 | 3,599 |
Other, net | 928 | 1,632 | 2,820 | 4,781 |
Interest and other investment income, net | 2,893 | 7,331 | 9,401 | 22,567 |
Lexington Realty Trust | ||||
Net Investment Income [Line Items] | ||||
(Decrease) increase in fair value of marketable securities: | (7,942) | 0 | (24,934) | 0 |
Other | ||||
Net Investment Income [Line Items] | ||||
(Decrease) increase in fair value of marketable securities: | 243 | $ 0 | 133 | $ 0 |
701 Seventh Avenue | ||||
Net Investment Income [Line Items] | ||||
Interest on loans receivable | $ 1,250 | $ 6,707 |
Interest and Debt Expense (Deta
Interest and Debt Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest and Debt Expense [Abstract] | ||||
Interest expense | $ 98,841 | $ 89,675 | $ 290,006 | $ 263,037 |
Amortization of deferred financing costs | 8,348 | 7,977 | 24,486 | 24,523 |
Capitalized interest and debt expense | (18,238) | (12,584) | (49,718) | (34,979) |
Interest and debt expense, Total | $ 88,951 | $ 85,068 | $ 264,774 | $ 252,581 |
Income (Loss) Per Share _Inco_3
Income (Loss) Per Share /Income (Loss) Per Class A Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Income from continuing operations, net of income attributable to noncontrolling interests | $ 203,122 | $ 32,050 | $ 336,570 | $ 196,684 |
Income (loss) from discontinued operations, net of income attributable to noncontrolling interests | 57 | (44,948) | 357 | (13,600) |
Net income (loss) attributable to Vornado / Vornado Realty L.P. | 203,179 | (12,898) | 336,927 | 183,084 |
Preferred share dividends / unit distributions | (12,534) | (16,128) | (38,103) | (48,386) |
Preferred share / unit issuance costs | 0 | 0 | (14,486) | 0 |
NET INCOME (LOSS) attributable to common shareholders / Class A unitholders | 190,645 | (29,026) | 284,338 | 134,698 |
Earnings allocated to unvested participating securities | (17) | (9) | (33) | (37) |
Numerator for basic income (loss) per share / per Class A unit | 190,628 | (29,035) | 284,305 | 134,661 |
Convertible preferred share dividends / unit distributions | 15 | 0 | 47 | 0 |
Earnings allocated to Out-Performance Plan units | 0 | 0 | 127 | 195 |
Numerator for diluted income (loss) per share | $ 190,643 | $ (29,035) | $ 284,479 | $ 134,856 |
Denominator: | ||||
Denominator for basic income (loss) per share - weighted average shares (in shares) | 190,245 | 189,593 | 190,176 | 189,401 |
Vornado employee stock options and restricted share / unit awards (in shares) | 1,045 | 1,254 | 972 | 1,553 |
Convertible preferred shares/units | 37 | 0 | 38 | 303 |
Out-Performance Plan units | 0 | 0 | 106 | 0 |
Denominator for diluted income (loss) per share - weighted average shares and assumed conversions (in shares) | 191,327 | 190,847 | 191,292 | 191,257 |
INCOME (LOSS) PER COMMON SHARE – BASIC: | ||||
Income from continuing operations, net (in dollars per share) | $ 1 | $ 0.09 | $ 1.50 | $ 0.78 |
Loss from discontinued operations, net (in dollars per share) | 0 | (0.24) | 0 | (0.07) |
Net income (loss) per common share (in dollars per share) | 1 | (0.15) | 1.50 | 0.71 |
INCOME (LOSS) PER COMMON SHARE – DILUTED: | ||||
Income from continuing operations, net (in dollars per share) | 1 | 0.09 | 1.49 | 0.78 |
Loss from discontinued operations, net (in dollars per share) | 0 | (0.24) | 0 | (0.07) |
Net income (loss) per common share (in dollars per share) | $ 1 | $ (0.15) | $ 1.49 | $ 0.71 |
Vornado Realty L.P. | ||||
Numerator: | ||||
Income from continuing operations, net of income attributable to noncontrolling interests | $ 215,789 | $ 33,154 | $ 355,538 | $ 206,642 |
Income (loss) from discontinued operations, net of income attributable to noncontrolling interests | 61 | (47,930) | 381 | (14,501) |
Net income (loss) attributable to Vornado / Vornado Realty L.P. | 215,850 | (14,776) | 355,919 | 192,141 |
Preferred share dividends / unit distributions | (12,582) | (16,176) | (38,248) | (48,531) |
Preferred share / unit issuance costs | 0 | 0 | (14,486) | 0 |
NET INCOME (LOSS) attributable to common shareholders / Class A unitholders | 203,268 | (30,952) | 303,185 | 143,610 |
Earnings allocated to unvested participating securities | (997) | (740) | (2,259) | (2,499) |
Numerator for basic income (loss) per share / per Class A unit | 202,271 | (31,692) | 300,926 | 141,111 |
Convertible preferred share dividends / unit distributions | 15 | 0 | 47 | 0 |
Numerator for diluted income (loss) per Class A unit | $ 202,286 | $ (31,692) | $ 300,973 | $ 141,111 |
Denominator: | ||||
Denominator for basic income (loss) per Class A unit – weighted average units (in shares) | 202,103 | 201,300 | 202,033 | 201,093 |
Vornado employee stock options and restricted share / unit awards (in shares) | 1,454 | 1,813 | 1,329 | 2,218 |
Convertible preferred shares/units | 37 | 0 | 38 | 0 |
Denominator for diluted income (loss) per Class A unit - weighted average units and assumed conversions | 203,594 | 203,113 | 203,400 | 203,311 |
INCOME (LOSS) PER CLASS A UNIT – BASIC: | ||||
Income from continuing operations, net (in dollars per unit) | $ 1 | $ 0.08 | $ 1.49 | $ 0.77 |
Loss from discontinued operations, net (in dollars per unit) | 0 | (0.24) | 0 | (0.07) |
Net income (loss) per Class A unit (in dollars per unit) | 1 | (0.16) | 1.49 | 0.70 |
INCOME (LOSS) PER CLASS A UNIT – DILUTED: | ||||
Income from continuing operations, net (in dollars per unit) | 0.99 | 0.08 | 1.48 | 0.76 |
Loss from discontinued operations, net (in dollars per unit) | 0 | (0.24) | 0 | (0.07) |
Net income (loss) per Class A unit (in dollars per unit) | $ 0.99 | $ (0.16) | $ 1.48 | $ 0.69 |
Income (Loss) Per Share _Inco_4
Income (Loss) Per Share /Income (Loss) Per Class A Unit (Narrative) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||||
Weighted average common share / class A unit equivalents of excluded dilutive securities due to anti-dilutive effect | 12,372 | 12,413 | 12,220 | 12,173 |
Vornado Realty L.P. | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||||
Weighted average common share / class A unit equivalents of excluded dilutive securities due to anti-dilutive effect | 105 | 147 | 112 | 118 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2016 | |
Other Commitments | ||
Guarantees and master leases | $ 620,000,000 | |
Outstanding letters of credit | 13,337,000 | |
Commitment to fund additional capital to partially owned entities | 19,000,000 | |
Construction commitment | 295,000,000 | |
General Liability | ||
Insurance | ||
Insurance limit per property | 300,000,000 | |
Insurance limit per occurrence | 300,000,000 | |
All Risk And Rental Value | ||
Insurance | ||
Insurance limit per occurrence | 2,000,000,000 | |
Earthquake California Properties | ||
Insurance | ||
Insurance limit per occurrence | 260,000,000 | |
Insurance maximum coverage limit in aggregate | $ 260,000,000 | |
Vornado deductible, percentage of property value | 5.00% | |
Terrorism Acts | ||
Insurance | ||
Insurance limit per occurrence | $ 4,000,000,000 | |
Insurance maximum coverage limit in aggregate | 4,000,000,000 | |
NBCR Acts | ||
Insurance | ||
Insurance limit per occurrence | 2,000,000,000 | |
Insurance maximum coverage limit in aggregate | $ 2,000,000,000 | |
Insurance coverage end date | December 2,020 | |
PPIC | NBCR Acts | ||
Insurance | ||
Insurance deductible | $ 1,601,000 | |
Insurance deductible percentage of balance of covered loss | 18.00% | |
Moynihan Office Building | ||
Other Commitments | ||
Equity method ownership percentage | 50.10% |
Segment Information (Summary of
Segment Information (Summary of net income and EBITDA reconciliation by segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Information | ||||
Net income (loss) | $ 219,162 | $ (10,754) | $ 324,782 | $ 210,577 |
(Income) loss from partially owned entities | (7,206) | 41,801 | (6,059) | (5,578) |
Loss from real estate fund investments | 190 | 6,308 | 37,973 | 1,649 |
Interest and other investment income, net | (2,893) | (7,331) | (9,401) | (22,567) |
Net gains on disposition of wholly owned and partially owned assets | (141,269) | 0 | (164,828) | (501) |
Income (loss) from discontinued operations | (61) | 47,930 | (381) | 14,501 |
NOI attributable to noncontrolling interests in consolidated subsidiaries | (16,943) | (16,171) | (51,415) | (48,778) |
Depreciation and amortization expense | 113,169 | 104,972 | 333,701 | 315,223 |
General and administrative expense | 31,977 | 34,286 | 108,937 | 115,866 |
Transaction related costs and other | 2,510 | 61 | 16,683 | 1,073 |
NOI from partially owned entities | 60,094 | 66,876 | 193,359 | 199,989 |
Interest and debt expense | 88,951 | 85,068 | 264,774 | 252,581 |
Income tax expense | 1,943 | 1,188 | 4,964 | 3,491 |
NOI at share | 349,624 | 354,234 | 1,053,089 | 1,037,526 |
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other | (8,743) | (22,307) | (39,172) | (65,263) |
NOI at share - cash basis | 340,881 | 331,927 | 1,013,917 | 972,263 |
Real estate fund investments | ||||
Segment Information | ||||
Loss from real estate fund investments | $ 190 | $ 6,308 | $ 37,973 | $ 1,649 |
Segment Information - Summary o
Segment Information - Summary of NOI by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Information | ||||
NOI - consolidated | $ 306,473 | $ 303,529 | $ 911,145 | $ 886,315 |
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (16,943) | (16,171) | (51,415) | (48,778) |
Add: Our share of NOI from partially owned entities | 60,094 | 66,876 | 193,359 | 199,989 |
NOI at share | 349,624 | 354,234 | 1,053,089 | 1,037,526 |
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other | (8,743) | (22,307) | (39,172) | (65,263) |
NOI at share - cash basis | 340,881 | 331,927 | 1,013,917 | 972,263 |
New York | ||||
Segment Information | ||||
NOI - consolidated | 261,497 | 261,179 | 769,714 | 755,461 |
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (11,348) | (11,464) | (34,653) | (34,251) |
Add: Our share of NOI from partially owned entities | 47,179 | 48,779 | 146,730 | 140,627 |
NOI at share | 297,328 | 298,494 | 881,791 | 861,837 |
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other | (9,125) | (21,092) | (39,161) | (57,761) |
NOI at share - cash basis | 288,203 | 277,402 | 842,630 | 804,076 |
Other | ||||
Segment Information | ||||
NOI - consolidated | 44,976 | 42,350 | 141,431 | 130,854 |
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries | (5,595) | (4,707) | (16,762) | (14,527) |
Add: Our share of NOI from partially owned entities | 12,915 | 18,097 | 46,629 | 59,362 |
NOI at share | 52,296 | 55,740 | 171,298 | 175,689 |
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other | 382 | (1,215) | (11) | (7,502) |
NOI at share - cash basis | 52,678 | 54,525 | 171,287 | 168,187 |
Real Estate | ||||
Segment Information | ||||
Total revenues | 542,048 | 528,755 | 1,620,303 | 1,547,900 |
Real Estate | New York | ||||
Segment Information | ||||
Total revenues | 462,446 | 453,609 | 1,369,482 | 1,316,710 |
Real Estate | Other | ||||
Segment Information | ||||
Total revenues | 79,602 | 75,146 | 250,821 | 231,190 |
Management Service | ||||
Segment Information | ||||
Operating expenses | 235,575 | 225,226 | 709,158 | 661,585 |
Management Service | New York | ||||
Segment Information | ||||
Operating expenses | 200,949 | 192,430 | 599,768 | 561,249 |
Management Service | Other | ||||
Segment Information | ||||
Operating expenses | $ 34,626 | $ 32,796 | $ 109,390 | $ 100,336 |
Subsequent Event (Narrative) (D
Subsequent Event (Narrative) (Details) - Unsecured Term Loan - Term Loan Maturing in February 2024 - Subsequent Event - USD ($) | Oct. 26, 2018 | Oct. 25, 2018 |
Subsequent Events | ||
Long-term Debt, Gross | $ 750,000,000 | |
Debt instrument, interest rate, stated percentage | 3.30% | |
LIBOR | ||
Subsequent Events | ||
Spread Over LIBOR (in percentage) | 1.00% | 1.15% |