Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 15, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | PARAMOUNT GROUP, INC. | |
Trading Symbol | PGRE | |
Title of 12(b) Security | Common stock of Paramount Group, Inc.,$0.01 par value per share | |
Security Exchange Name | NYSE | |
Entity Central Index Key | 0001605607 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-36746 | |
Entity Tax Identification Number | 32-0439307 | |
Entity Address, Address Line One | 1633 Broadway | |
Entity Address, Address Line Two | Suite 1801 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10019 | |
City Area Code | 212 | |
Local Phone Number | 237-3100 | |
Entity Incorporation, State or Country Code | MD | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 234,112,236 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Real estate, at cost: | |||
Land | $ 2,065,206 | $ 2,065,206 | |
Buildings and improvements | 6,084,684 | 6,036,445 | |
Rental property, at cost | 8,149,890 | 8,101,651 | |
Accumulated depreciation and amortization | (735,124) | (644,639) | |
Real estate, net | 7,414,766 | 7,457,012 | |
Cash and cash equivalents | 283,485 | 339,653 | |
Restricted cash | 22,894 | 25,756 | |
Investments in unconsolidated joint ventures | 137,734 | 78,863 | |
Investments in unconsolidated real estate funds | 8,263 | 10,352 | |
Preferred equity investments | 36,042 | ||
Accounts and other receivables, net of allowance of $593 in 2018 | 19,695 | 20,076 | |
Due from affiliates | 170,000 | ||
Deferred rent receivable | 289,565 | 267,456 | |
Deferred charges, net of accumulated amortization of $36,476 and $30,129 | 130,550 | 117,858 | |
Intangible assets, net of accumulated amortization of $264,007 and $245,444 | 239,326 | 270,445 | |
Other assets | 137,597 | 132,465 | |
Total assets | [1] | 8,853,875 | 8,755,978 |
Liabilities and Equity | |||
Notes and mortgages payable, net of deferred financing costs of $28,567 and $32,883 | 3,571,233 | 3,566,917 | |
Revolving credit facility | 170,000 | 0 | |
Accounts payable and accrued expenses | 124,460 | 124,334 | |
Dividends and distributions payable | 25,953 | 25,902 | |
Intangible liabilities, net of accumulated amortization of $94,899 and $89,200 | 84,531 | 95,991 | |
Other liabilities | 64,309 | 51,170 | |
Total liabilities | [1] | 4,040,486 | 3,864,314 |
Commitments and contingencies | |||
Paramount Group, Inc. equity: | |||
Common stock $0.01 par value per share; authorized 900,000,000 shares; issued and outstanding 234,123,611 and 233,135,704 shares in 2019 and 2018, respectively | 2,341 | 2,329 | |
Additional paid-in-capital | 4,214,193 | 4,201,756 | |
Earnings less than distributions | (260,939) | (219,906) | |
Accumulated other comprehensive (loss) income | (5,525) | 16,621 | |
Paramount Group, Inc. equity | 3,950,070 | 4,000,800 | |
Noncontrolling interests in: | |||
Consolidated joint ventures | 365,278 | 394,995 | |
Consolidated real estate fund | 81,949 | 66,887 | |
Operating Partnership (24,780,150 and 25,127,003 units outstanding) | 416,092 | 428,982 | |
Total equity | 4,813,389 | 4,891,664 | |
Total liabilities and equity | $ 8,853,875 | $ 8,755,978 | |
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 90.4% as of June 30, 2019. The assets and liabilities of the Operating Partnership, as of June 30, 2019, include $1,971,954 and $1,267,939 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 13, Variable Interest Entities (“VIEs”). |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | ||
Accounts and other receivables, allowance | $ 593 | ||
Deferred charges, accumulated amortization | $ 36,476 | 30,129 | |
Intangible assets, accumulated amortization | 264,007 | 245,444 | |
Notes and mortgages payable, deferred financing costs | 28,567 | 32,883 | |
Intangible liabilities, accumulated amortization | $ 94,899 | $ 89,200 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 900,000,000 | 900,000,000 | |
Common stock, shares issued | 234,123,611 | 233,135,704 | |
Common stock, shares outstanding | 234,123,611 | 233,135,704 | |
Operating partnership, units outstanding | 24,780,150 | 25,127,003 | |
Percentage of ownership in operating partnership | 90.40% | ||
Total assets | [1] | $ 8,853,875 | $ 8,755,978 |
Total liabilities | [1] | $ 4,040,486 | 3,864,314 |
Variable Interest Entities [Member] | |||
Percentage of ownership in operating partnership | 90.40% | ||
Total assets | $ 1,971,954 | 1,982,679 | |
Total liabilities | $ 1,267,939 | $ 1,253,414 | |
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 90.4% as of June 30, 2019. The assets and liabilities of the Operating Partnership, as of June 30, 2019, include $1,971,954 and $1,267,939 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 13, Variable Interest Entities (“VIEs”). |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Rental revenue | $ 181,140 | $ 182,722 | $ 363,756 | $ 360,401 |
Fee and other income | 7,443 | 8,697 | 16,619 | 15,289 |
Total revenues | 188,583 | 191,419 | 380,375 | 375,690 |
Expenses: | ||||
Operating | 67,572 | 67,646 | 135,953 | 136,624 |
Depreciation and amortization | 62,625 | 64,775 | 125,714 | 129,931 |
General and administrative | 17,695 | 17,195 | 35,138 | 29,826 |
Transaction related costs | 182 | 293 | 918 | 413 |
Total expenses | 148,074 | 149,909 | 297,723 | 296,794 |
Other income (expense): | ||||
(Loss) income from unconsolidated joint ventures | (456) | 2,521 | (1,483) | 2,459 |
Income (loss) from unconsolidated real estate funds | 19 | (14) | 65 | (80) |
Interest and other income, net | 2,583 | 2,094 | 6,483 | 4,110 |
Interest and debt expense | (37,213) | (36,809) | (74,137) | (72,891) |
Real estate impairment loss | (46,000) | (46,000) | ||
Net income (loss) before income taxes | 5,442 | (36,698) | 13,580 | (33,506) |
Income tax (expense) benefit | (268) | 120 | (1,406) | (357) |
Net income (loss) | 5,174 | (36,578) | 12,174 | (33,863) |
Less net (income) loss attributable to noncontrolling interests in: | ||||
Consolidated joint ventures | (2,408) | (1,752) | (5,202) | (2,807) |
Consolidated real estate fund | (53) | (152) | (147) | (582) |
Operating Partnership | (258) | 3,666 | (661) | 3,550 |
Net income (loss) attributable to common stockholders | $ 2,455 | $ (34,816) | $ 6,164 | $ (33,702) |
Income (loss) per Common Share - Basic: | ||||
Income (loss) per common share | $ 0.01 | $ (0.14) | $ 0.03 | $ (0.14) |
Weighted average shares outstanding | 234,329,904 | 240,336,485 | 233,877,117 | 240,324,183 |
Income (loss) per Common Share - Diluted: | ||||
Income (loss) per common share | $ 0.01 | $ (0.14) | $ 0.03 | $ (0.14) |
Weighted average shares outstanding | 234,355,864 | 240,336,485 | 233,908,236 | 240,324,183 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 5,174 | $ (36,578) | $ 12,174 | $ (33,863) | |
Other comprehensive (loss) income: | |||||
Change in value of interest rate swaps | (15,345) | 5,795 | (24,371) | 20,346 | |
Pro rata share of other comprehensive (loss) income of unconsolidated joint ventures | [1] | (76) | 103 | (184) | 157 |
Comprehensive loss | (10,247) | (30,680) | (12,381) | (13,360) | |
Less comprehensive (income) loss attributable to noncontrolling interests in: | |||||
Consolidated joint ventures | (2,408) | (1,752) | (5,202) | (2,807) | |
Consolidated real estate fund | (48) | (152) | (99) | (582) | |
Operating Partnership | 1,209 | 3,103 | 1,697 | 1,611 | |
Comprehensive loss attributable to common stockholders | $ (11,494) | $ (29,481) | $ (15,985) | $ (15,138) | |
[1] | Represents foreign currency translation adjustments. No amounts were reclassified from accumulated other comprehensive (loss) income during any of the periods set forth above. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Previously Reported [Member] | Restatement Adjustment [Member] | Common Stock [Member] | Common Stock [Member]Previously Reported [Member] | Additional Paid in Capital [Member] | Additional Paid in Capital [Member]Previously Reported [Member] | Earnings Less than Distributions [Member] | Earnings Less than Distributions [Member]Previously Reported [Member] | Earnings Less than Distributions [Member]Restatement Adjustment [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Accumulated Other Comprehensive (Loss) Income [Member]Previously Reported [Member] | Noncontrolling InterestConsolidated Joint Ventures [Member] | Noncontrolling InterestConsolidated Joint Ventures [Member]Previously Reported [Member] | Noncontrolling InterestConsolidated Real Estate Fund [Member] | Noncontrolling InterestConsolidated Real Estate Fund [Member]Previously Reported [Member] | Noncontrolling InterestConsolidated Real Estate Fund [Member]Restatement Adjustment [Member] | Noncontrolling InterestOperating Partnership [Member] | Noncontrolling InterestOperating Partnership [Member]Previously Reported [Member] |
Beginning balance at Dec. 31, 2017 | $ 5,029,170 | $ 5,022,084 | $ 2,403 | $ 2,403 | $ 4,297,948 | $ 4,297,948 | $ (133,164) | $ (133,693) | $ 10,083 | $ 10,083 | $ 404,997 | $ 404,997 | $ 21,106 | $ 14,549 | $ 425,797 | $ 425,797 | |||
Beginning balance (Basis adjustment upon adoption of ASU 2017-05) at Dec. 31, 2017 | $ 7,086 | $ 529 | $ 6,557 | ||||||||||||||||
Common stock, shares outstanding at Dec. 31, 2017 | 240,427,000 | 240,427,000 | |||||||||||||||||
Net (loss) income | (33,863) | (33,702) | 2,807 | 582 | (3,550) | ||||||||||||||
Common shares issued upon redemption of common units | 469 | ||||||||||||||||||
Common shares issued upon redemption of common units | 27,000 | ||||||||||||||||||
Redemption of minority interest in operating partnerships | (469) | ||||||||||||||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | (213) | (213) | |||||||||||||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | 75,000 | ||||||||||||||||||
Dividends and distributions | (53,247) | (48,103) | (5,144) | ||||||||||||||||
Contributions from noncontrolling interests | 36,128 | 36,128 | |||||||||||||||||
Distributions to noncontrolling interests | (4,118) | (4,118) | |||||||||||||||||
Change in value of interest rate swaps | 20,346 | 18,422 | 1,924 | ||||||||||||||||
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures | 157 | 142 | 15 | ||||||||||||||||
Amortization of equity awards | 11,558 | 1,470 | 10,088 | ||||||||||||||||
Other | (170) | (2,064) | (171) | 2,065 | |||||||||||||||
Ending balance at Jun. 30, 2018 | 5,005,748 | $ 2,403 | 4,297,823 | (215,353) | 28,647 | 403,686 | 57,816 | 430,726 | |||||||||||
Common stock, shares outstanding at Jun. 30, 2018 | 240,529,000 | ||||||||||||||||||
Beginning balance at Mar. 31, 2018 | 5,054,070 | $ 2,403 | 4,293,209 | (156,485) | 23,312 | 404,137 | 51,456 | 436,038 | |||||||||||
Common stock, shares outstanding at Mar. 31, 2018 | 240,506,000 | ||||||||||||||||||
Net (loss) income | (36,578) | (34,816) | 1,752 | 152 | (3,666) | ||||||||||||||
Common shares issued upon redemption of common units | 346 | ||||||||||||||||||
Common shares issued upon redemption of common units | 20,000 | ||||||||||||||||||
Redemption of minority interest in operating partnerships | (346) | ||||||||||||||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | 3,000 | ||||||||||||||||||
Dividends and distributions | (26,620) | (24,052) | (2,568) | ||||||||||||||||
Contributions from noncontrolling interests | 6,208 | 6,208 | |||||||||||||||||
Distributions to noncontrolling interests | (2,203) | (2,203) | |||||||||||||||||
Change in value of interest rate swaps | 5,795 | 5,243 | 552 | ||||||||||||||||
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures | 103 | 92 | 11 | ||||||||||||||||
Amortization of equity awards | 4,974 | 632 | 4,342 | ||||||||||||||||
Other | (1) | 3,636 | (3,637) | ||||||||||||||||
Ending balance at Jun. 30, 2018 | 5,005,748 | $ 2,403 | 4,297,823 | (215,353) | 28,647 | 403,686 | 57,816 | 430,726 | |||||||||||
Common stock, shares outstanding at Jun. 30, 2018 | 240,529,000 | ||||||||||||||||||
Beginning balance at Dec. 31, 2018 | $ 4,891,664 | $ 2,329 | 4,201,756 | (219,906) | 16,621 | 394,995 | 66,887 | 428,982 | |||||||||||
Common stock, shares outstanding at Dec. 31, 2018 | 233,135,704 | 233,136,000 | |||||||||||||||||
Net (loss) income | $ 12,174 | 6,164 | 5,202 | 147 | 661 | ||||||||||||||
Common shares issued upon redemption of common units | $ 14 | 23,976 | |||||||||||||||||
Common shares issued upon redemption of common units | 1,406,000 | ||||||||||||||||||
Redemption of minority interest in operating partnerships | (23,990) | ||||||||||||||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | (307) | $ 3 | (310) | ||||||||||||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | 56,000 | ||||||||||||||||||
Repurchases of common shares | (6,488) | $ (5) | (6,483) | ||||||||||||||||
Repurchases of common shares, shares | (474,000) | ||||||||||||||||||
Dividends and distributions | (51,902) | (46,887) | (5,015) | ||||||||||||||||
Contributions from noncontrolling interests | 14,966 | 14,966 | |||||||||||||||||
Distributions to noncontrolling interests | (34,919) | (34,919) | |||||||||||||||||
Change in value of interest rate swaps | (24,371) | (22,026) | (2,345) | ||||||||||||||||
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures | (184) | (120) | (51) | (13) | |||||||||||||||
Amortization of equity awards | 12,756 | 1,340 | 11,416 | ||||||||||||||||
Other | (6,396) | 6,396 | |||||||||||||||||
Ending balance at Jun. 30, 2019 | $ 4,813,389 | $ 2,341 | 4,214,193 | (260,939) | (5,525) | 365,278 | 81,949 | 416,092 | |||||||||||
Common stock, shares outstanding at Jun. 30, 2019 | 234,123,611 | 234,124,000 | |||||||||||||||||
Beginning balance at Mar. 31, 2019 | $ 4,854,636 | $ 2,345 | 4,218,060 | (239,949) | 8,421 | 367,012 | 81,434 | 417,313 | |||||||||||
Common stock, shares outstanding at Mar. 31, 2019 | 234,478,000 | ||||||||||||||||||
Net (loss) income | 5,174 | 2,455 | 2,408 | 53 | 258 | ||||||||||||||
Common shares issued upon redemption of common units | $ 1 | 2,007 | |||||||||||||||||
Common shares issued upon redemption of common units | 118,000 | ||||||||||||||||||
Redemption of minority interest in operating partnerships | (2,008) | ||||||||||||||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | (6) | (6) | |||||||||||||||||
Common shares issued under Omnibus share plan, net of shares withheld for taxes | 2,000 | ||||||||||||||||||
Repurchases of common shares | $ (6,488) | $ (5) | (6,483) | ||||||||||||||||
Repurchases of common shares, shares | (474,500) | (474,000) | |||||||||||||||||
Dividends and distributions | $ (25,953) | (23,439) | (2,514) | ||||||||||||||||
Contributions from noncontrolling interests | 470 | 470 | |||||||||||||||||
Distributions to noncontrolling interests | (4,142) | (4,142) | |||||||||||||||||
Change in value of interest rate swaps | (15,345) | (13,884) | (1,461) | ||||||||||||||||
Pro rata share of other comprehensive income (loss) of unconsolidated joint ventures | (76) | (62) | (8) | (6) | |||||||||||||||
Amortization of equity awards | 5,119 | 643 | 4,476 | ||||||||||||||||
Other | (34) | 34 | |||||||||||||||||
Ending balance at Jun. 30, 2019 | $ 4,813,389 | $ 2,341 | $ 4,214,193 | $ (260,939) | $ (5,525) | $ 365,278 | $ 81,949 | $ 416,092 | |||||||||||
Common stock, shares outstanding at Jun. 30, 2019 | 234,123,611 | 234,124,000 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||||
Dividends and distributions, Per share and unit | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ 12,174 | $ (33,863) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 125,714 | 129,931 |
Straight-lining of rental revenue | (22,110) | (29,983) |
Amortization of stock-based compensation expense | 12,685 | 10,915 |
Amortization of above and below-market leases, net | (6,003) | (8,724) |
Amortization of deferred financing costs | 5,626 | 5,515 |
Receipt of accrued interest on preferred equity investment | 2,339 | |
Realized and unrealized (gains) losses on marketable securities | (2,474) | 1 |
Distributions of earnings from unconsolidated joint ventures | 1,980 | 1,170 |
Loss (income) from unconsolidated joint ventures | 1,483 | (2,459) |
Distributions of earnings from unconsolidated real estate funds | 1,137 | 135 |
(Income) loss from unconsolidated real estate funds | (65) | 80 |
Real estate impairment loss | 46,000 | |
Other non-cash adjustments | (339) | 40 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | 381 | 1,533 |
Deferred charges | (8,466) | (13,734) |
Other assets | (6,294) | (1,910) |
Accounts payable and accrued expenses | (12,293) | 1,297 |
Other liabilities | 1,338 | 567 |
Net cash provided by operating activities | 106,813 | 106,511 |
Cash Flows from Investing Activities: | ||
Due from affiliates | (181,000) | |
Repayment of amounts due from affiliates | 11,000 | |
Investments in and contributions of capital to unconsolidated joint ventures | (52,525) | (17,137) |
Additions to real estate | (50,766) | (51,610) |
Redemption of preferred equity investment | 33,750 | |
Real estate acquisition deposits | (20,000) | |
Sales of marketable securities | 10,407 | 15,253 |
Purchases of marketable securities | (8,867) | (12,140) |
Distributions of capital from unconsolidated real estate funds | 1,260 | |
Contributions of capital to unconsolidated real estate funds | (243) | (2,254) |
Escrow deposits and loans receivable for Residential Development Fund | (15,680) | |
Distributions of capital from unconsolidated joint ventures | 2,608 | |
Net cash used in investing activities | (256,984) | (80,960) |
Cash Flows from Financing Activities: | ||
Borrowings under revolving credit facility | 170,000 | |
Dividends paid to common stockholders | (46,804) | (46,892) |
Distributions paid to common unitholders | (5,047) | (4,945) |
Distributions to noncontrolling interests | (34,919) | (4,118) |
Contributions from noncontrolling interests | 14,966 | 36,128 |
Repurchases of common shares | (6,488) | |
Repurchase of shares related to stock compensation agreements and related tax withholdings | (307) | (213) |
Debt issuance costs | (260) | (6,351) |
Proceeds from notes and mortgages payable | 16,700 | |
Net cash provided by (used in) financing activities | 91,141 | (9,691) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (59,030) | 15,860 |
Cash and cash equivalents and restricted cash at beginning of period | 365,409 | 250,425 |
Cash and cash equivalents and restricted cash at end of period | 306,379 | 266,285 |
Reconciliation of Cash and Cash Equivalents and Restricted Cash: | ||
Cash and cash equivalents at beginning of period | 339,653 | 219,381 |
Restricted cash at beginning of period | 25,756 | 31,044 |
Cash and cash equivalents and restricted cash at beginning of period | 365,409 | 250,425 |
Cash and cash equivalents at end of period | 283,485 | 233,530 |
Restricted cash at end of period | 22,894 | 32,755 |
Cash and cash equivalents and restricted cash at end of period | 306,379 | 266,285 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash payments for interest | 69,401 | 67,367 |
Cash payments for income taxes, net of refunds | 2,053 | 1,699 |
Non-Cash Transactions: | ||
Dividends and distributions declared but not yet paid | 25,953 | 26,621 |
Change in value of interest rate swaps | 24,371 | 20,346 |
Common shares issued upon redemption of common units | 23,990 | 469 |
Additions to real estate included in accounts payable and accrued expenses | 18,370 | 10,400 |
Write-off of fully amortized and/or depreciated assets | $ 3,387 | 2,947 |
Basis adjustment to investment in unconsolidated joint ventures upon adoption of ASU 2017-05 | $ 7,086 |
Organization and Business
Organization and Business | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization And Business | 1. Organization and Business As used in these consolidated financial statements, unless otherwise indicated, all references to “we,” “us,” “our,” the “Company,” and “Paramount” refer to Paramount Group, Inc., a Maryland corporation, and its consolidated subsidiaries, including Paramount Group Operating Partnership LP (the “Operating Partnership”), a Delaware limited partnership. We are a fully-integrated real estate investment trust (“REIT”) focused on owning, operating, managing, acquiring and redeveloping high-quality, Class A office properties in select central business district submarkets of New York City, San Francisco and Washington, D.C. As of June 30, 2019, our portfolio consisted of 13 Class A office properties aggregating approximately 12.2 million square feet. We conduct our business through, and substantially all of our interests in properties and investments are held by, the Operating Partnership. We are the sole general partner of, and owned approximately 90.4% of, the Operating Partnership as of June 30, 2019. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Basis Of Presentation And Significant Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conjunction with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted. These consolidated financial statements include the accounts of Paramount and its consolidated subsidiaries, including the Operating Partnership. In the opinion of management, all significant adjustments (which include only normal recurring adjustments) and eliminations (which include intercompany balances and transactions) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. The consolidated balance sheet as of December 31, 2018 was derived from audited financial statements as of that date, but does not include all information and disclosures required by GAAP. These consolidated financial statements 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, 2018, as filed with the SEC. Significant Accounting Policies There are no material changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2018. Use of Estimates 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 financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates. The results of operations for the three and six months ended June 30, 2019, are not necessarily indicative of the operating results for the full year. Reclassifications Certain prior year balances have been reclassified to conform to current year presentation. Recently Issued Accounting Pronouncements Not Materially Impacting Our Financial Statements In June 2016, the FASB issued ASU 2016-13, an update to ASC Topic 326, Financial Instruments – Credit Losses Leases. In August 2018, the FASB issued ASU 2018-13, an update to ASC Topic 820, Fair Value Measurements In December 2018, the FASB issued ASU 2018-20, an update to ASC Topic 842, Leases Recently Issued Accounting Pronouncements Impacting or Potentially Impacting Our Financial Statements In February 2016, the FASB issued ASU 2016-02, an update to ASC Topic 842, Leases While accounting for lessors under ASU 2016-02 is substantially similar to existing lease accounting guidance, lessors are required to separate payments received pursuant to a lease between lease components (payments received towards the leased space) and non-lease components (payments received towards common area maintenance activities). In July 2018, the FASB issued ASU 2018-11, which provided lessors with a practical expedient to not separate lease and non-lease components, if certain criteria are met. Upon the adoption of ASU 2016-02, we elected this practical expedient and accordingly, have combined lease and non-lease components into rental revenue on our consolidated statements of income. We account for both components under ASC Topic 842. ASU 2016-02 also requires companies to account for the impairment of receivables arising from operating leases (previously recorded as bad debt expense, a component of “operating expenses”), as a reduction to “rental income”. Accordingly, beginning on January 1, 2019, impairment of receivables arising from operating leases have been recorded as a reduction of rental income and are no longer reflected as bad debt expense. Furthermore, ASU 2016-02 also updates the definition of initial direct costs for both lessees and lessors to include only incremental costs of a lease that would not have been incurred if the lease had not been obtained. This ASU also provides a package of practical expedients which permits companies not to reassess under ASC Topic 842, its prior conclusions about lease identification, lease classification and initial direct costs. Upon adoption of ASU 2016-02, we elected this practical expedient and accordingly, effective January 1, 2019, we no longer capitalize internal leasing costs. In October 2018, the FASB issued ASU 2018-17, an update to ASC Topic 810, Consolidations. eporting entities to consider indirect interests held by related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety in determining whether a decision-making fee is a variable interest. ASU 2018-17 is effective for permitted. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 3 . Acquisitions 55 Second Street On June 23, 2019, we entered into an agreement to acquire 55 Second Street, a 387,000 square foot office building located in San Francisco, California, for $407,800,000. In connection therewith, we made a $20,000,000 deposit, which is included in “other assets” on our consolidated balance sheet. The transaction, which is subject to customary closing conditions, is expected to close by the end of the third quarter of 2019 and we intend to bring in a joint venture partner prior to closing. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | 4 . Investments in Unconsolidated Joint Ventures On February 7, 2019, we completed the acquisition of 111 Sutter Street, a 293,000 square foot office building in San Francisco, California. Simultaneously with closing, we brought in a joint venture partner to acquire 51.0% of the equity interest. We have retained the remaining 49.0% equity interest and manage and lease the asset. The purchase price was $227,000,000. In connection with the acquisition, the joint venture completed a $138,200,000 financing of the property. The four-year loan is interest only at LIBOR plus 215 basis points and has three one-year extension options. We began accounting for our investment in 111 Sutter Street, under the equity method, from the date of the acquisition. On March 29, 2019, our consolidated Residential Development Fund (“RDF”) acquired an additional 5.0% economic interest in One Steuart Lane from one of its joint venture partners for $9,339,000. Subsequent to this transaction, RDF owns a 30.0% economic interest in the property and the remaining 70.0% interest is owned by the joint venture partners. We own a 7.4% interest in RDF and continue to consolidate RDF and reflect the 92.6% interest we do not own, as noncontrolling interests. As of June 30, 2019, our economic interest in One Steuart Lane (based on our ownership of RDF) was 2.2%. The following tables summarize our investments in unconsolidated joint ventures as of the dates thereof and the income or loss from these investments for the periods set forth below. (Amounts in thousands) Paramount As of Our Share of Investments: Ownership June 30, 2019 December 31, 2018 712 Fifth Avenue (1) 50.0% $ - $ - 111 Sutter Street 49.0% 43,897 - 60 Wall Street (2) 5.0% 21,031 22,353 One Steuart Lane (2) 30.0% (3) 69,346 52,923 (4) Oder-Center, Germany (2) 9.5% 3,460 3,587 Investments in unconsolidated joint ventures $ 137,734 $ 78,863 (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, Our Share of Net (Loss) Income: 2019 2018 2019 2018 712 Fifth Avenue (1) $ 917 $ 2,608 $ 917 $ 2,608 111 Sutter Street (1,249 ) - (2,121 ) (5) - 60 Wall Street (2) (149 ) (102 ) (298 ) (175 ) One Steuart Lane (2) 8 (16 ) (7 ) (18 ) Oder-Center, Germany (2) 17 31 26 44 (Loss) income from unconsolidated joint ventures $ (456 ) $ 2,521 $ (1,483 ) $ 2,459 (1) (2) (3) (4) (5) The following tables provide the combined summarized financial information of our unconsolidated joint ventures as of the dates and for the periods set forth below. (Amounts in thousands) As of Balance Sheets: June 30, 2019 December 31, 2018 Real estate, net $ 1,463,668 $ 1,236,989 Intangible assets, net 97,811 97,658 Other assets 95,058 91,552 Total assets $ 1,656,537 $ 1,426,199 Notes and mortgages payable, net $ 1,022,881 $ 887,882 Intangible liabilities, net 5,277 - Other liabilities 26,542 22,310 Total liabilities 1,054,700 910,192 Equity 601,837 516,007 Total liabilities and equity $ 1,656,537 $ 1,426,199 (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, Income Statements: 2019 2018 2019 2018 Revenues: Rental revenue $ 36,455 $ 35,206 $ 74,679 $ 71,041 Fee and other income 393 167 491 303 Total revenues 36,848 35,373 75,170 71,344 Expenses: Operating expenses 15,274 13,078 29,677 26,605 Depreciation and amortization 15,082 12,032 29,207 24,193 Total expenses 30,356 25,110 58,884 50,798 Other income (expense): Interest and other income, net 201 198 299 368 Interest and debt expense (12,323 ) (9,733 ) (23,850 ) (18,912 ) Net (loss) income before income taxes (5,630 ) 728 (7,265 ) 2,002 Income tax expense - - (8 ) (10 ) Net (loss) income $ (5,630 ) $ 728 $ (7,273 ) $ 1,992 |
Investments in Unconsolidated R
Investments in Unconsolidated Real Estate Funds | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate Fund [Abstract] | |
Investments In Unconsolidated Real Estate Funds Text Block | 5 . Investments in Unconsolidated Real Estate Funds We are the general partner and investment manager of Paramount Group Real Estate Fund VII, LP (“Fund VII”) and its parallel fund, Paramount Group Real Estate Fund VII-H, LP (“Fund VII-H”), our Property Funds. On January 25, 2019, Fund VII and Fund VII-H sold their only remaining asset, 0 Bond Street, a 64,532 square foot creative office building in the NoHo submarket of Manhattan, for $130,500,000. We also manage Paramount Group Real Estate Fund VIII, LP (“Fund VIII”) and Paramount Group Real Estate Fund X, LP (“Fund X”), our Alternative Investment Funds, which invest in mortgage and mezzanine loans and preferred equity investments. As of June 30, 2019, Fund VIII has invested $633,250,000 of the $775,200,000 of capital committed and Fund X, which completed its initial closing in December 2018 with $172,000,000 of capital commitments, has invested $170,000,000. As of June 30, 2019, our ownership interest in Fund VIII and Fund X was approximately 1.3% and 8.7%, respectively. At June 30, 2019 and December 31, 2018, our investments in the above mentioned unconsolidated real estate funds aggregated $8,263,000 and $10,352,000, respectively and we recognized income of $19,000 and $65,000 in the three and six months ended June 30, 2019, respectively, and losses of $14,000 and $80,000, in the three and six months ended June 30, 2018, respectively. |
Preferred Equity Investments
Preferred Equity Investments | 6 Months Ended |
Jun. 30, 2019 | |
Schedule Of Investments [Abstract] | |
Preferred Equity Investments | 6 . Preferred Equity Investments We own a 24.4% interest in PGRESS Equity Holdings LP (“PGRESS”), an entity that owned a preferred equity investment in a partnership that owned 470 Vanderbilt, a 686,000 square foot office building in Brooklyn, New York. The preferred equity had a dividend rate of 10.3%, of which 8.0% was paid in cash through February 2016 and the unpaid portion accreted to the balance of the investment. Subsequent to February 2016, the entire 10.3% dividend was paid in cash. On March 1, 2019, the partnership that owned 470 Vanderbilt redeemed the preferred equity investment for $36,089,000 consisting of the investment balance and accrued interest. |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Liabilities | 7 . Intangible Assets and Liabilities The following tables summarize our intangible assets (acquired above-market leases and acquired in-place leases) and intangible liabilities (acquired below-market leases) and the related amortization as of the dates and for the periods set forth below. As of (Amounts in thousands) June 30, 2019 December 31, 2018 Intangible assets: Gross amount $ 503,333 $ 515,889 Accumulated amortization (264,007 ) (245,444 ) $ 239,326 $ 270,445 Intangible liabilities: Gross amount $ 179,430 $ 185,191 Accumulated amortization (94,899 ) (89,200 ) $ 84,531 $ 95,991 For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 Amortization of above and below-market leases, net (component of "rental revenue") $ 2,727 $ 4,304 $ 6,003 $ 8,724 Amortization of acquired in-place leases (component of "depreciation and amortization") 12,330 14,721 25,663 30,014 The following table sets forth annual amortization of acquired above and below-market leases, net and amortization of acquired in-place leases for each of the five succeeding years commencing from January 1, 2020. (Amounts in thousands) For the Year Ending December 31, Above and Below-Market Leases, Net In-Place Leases 2020 $ 6,292 $ 38,324 2021 3,639 28,267 2022 1,173 23,758 2023 4,682 19,089 2024 5,692 14,661 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 8 . Debt The following table summarizes our outstanding debt. Interest Rate Maturity Fixed/ as of As of (Amounts in thousands) Date Variable Rate June 30, 2019 June 30, 2019 December 31, 2018 Notes and mortgages payable: 1633 Broadway Dec-2022 Fixed (1) 3.54 % $ 1,000,000 $ 1,000,000 Dec-2022 L + 175 bps 4.19 % 46,800 (2) 46,800 (2) 3.57 % 1,046,800 1,046,800 One Market Plaza (3) Feb-2024 Fixed 4.03 % 975,000 975,000 1301 Avenue of the Americas Nov-2021 Fixed 3.05 % 500,000 500,000 Nov-2021 L + 180 bps 4.30 % 350,000 350,000 3.56 % 850,000 850,000 31 West 52nd Street May-2026 Fixed 3.80 % 500,000 500,000 300 Mission Street (3) Oct-2021 Fixed 3.65 % 228,000 228,000 Total notes and mortgages payable 3.73 % 3,599,800 3,599,800 Less: deferred financing costs (28,567 ) (32,883 ) Total notes and mortgages payable, net $ 3,571,233 $ 3,566,917 $1.0 Billion Revolving Credit Facility Jan-2022 L + 115 bps 3.67 % $ 170,000 $ - (1) Derivative Instruments and Hedging Activities (2) (3) |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 9 . Derivative Instruments and Hedging Activities Interest Rate Swaps – Designated as Cash Flow Hedges We have interest rate swaps with an aggregate notional amount of $1.0 billion that are designated as cash flow hedges. We also have entered into forward starting interest rate swaps with an aggregate notional amount of $400,000,000 to extend the maturity of certain swaps for an additional year. Changes in the fair value of interest rate swaps that are designated as cash flow hedges are recognized in “other comprehensive (loss) income” (outside of earnings). We recognized other comprehensive loss of $15,345,000 and $24,371,000 for the three and six months ended June 30, 2019, respectively, and other comprehensive income of $5,795,000 and $20,346,000 for the three and six months ended June 30, 2018, respectively, from the changes in fair value of these interest rate swaps. See Note 11, Accumulated Other Comprehensive (Loss) Income The following table summarizes the fair value of our interest rate swaps that are designated as cash flow hedges. Fair Value as of (Amounts in thousands) June 30, 2019 December 31, 2018 Interest rate swap assets designated as cash flow hedges (included in "other assets") $ 579 $ 16,859 Interest rate swap liabilities designated as cash flow hedges (included in "other liabilities") $ 8,139 $ 48 We have agreements with various derivative counterparties that contain provisions wherein a default on our indebtedness could be deemed a default on our derivative obligations, which would require us to either post collateral up to the fair value of our derivative obligations or settle the obligations for cash. As of June 30, 2019, we did not have any obligations relating to our swaps. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders Equity Note [Abstract] | |
Equity | 10 . Equity On August 1, 2017, we received authorization from our Board of Directors to repurchase up to $200,000,000 of our common stock from time to time, in the open market or in privately negotiated transactions. During 2019, we repurchased 889,549 common shares for an aggregate price of $12,166,000, or a weighted average price of $13.68 per share, including 474,500 shares that were repurchased during the three months ended June 30, 2019. To date, we have repurchased 8,455,150 common shares for an aggregate price of $117,549,000, or a weighted average price of $13.92 per share and have $82,451,000 available for future repurchases under the program. The amount and timing of future repurchases, if any, will depend on a number of factors, including, the price and availability of our shares, trading volume and general market conditions. The stock repurchase program may be suspended or discontinued at any time. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | 11 . Accumulated Other Comprehensive (Loss) Income The following table sets forth changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2019 and 2018, including amounts attributable to noncontrolling interests in the Operating Partnership. For the Three Months Ended For the Six Months Ended June 30, June 30, (Amounts in thousands) 2019 2018 2019 2018 Amount of (loss) income related to the effective portion of cash flow hedges recognized in other comprehensive (loss) income $ (13,608 ) $ 6,123 $ (20,846 ) $ 20,202 Amounts reclassified from accumulated other comprehensive (loss) income (decreasing) increasing interest and debt expense (1,737 ) (328 ) (3,525 ) 144 Amount of (loss) income related to unconsolidated joint ventures recognized in other comprehensive (loss) income (1) (76 ) 103 (184 ) 157 (1) |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 1 2 . Noncontrolling Interests Consolidated Joint Ventures Noncontrolling interests in consolidated joint ventures consist of equity interests held by third parties in One Market Plaza, 300 Mission Street and PGRESS Equity Holdings LP. As of June 30, 2019 and December 31, 2018, noncontrolling interests in our consolidated joint ventures aggregated $365,278,000 and $394,995,000, respectively. Consolidated Real Estate Fund Noncontrolling interests in our consolidated real estate fund consists of equity interests held by third parties in RDF. As of June 30, 2019 and December 31, 2018, the noncontrolling interest in our consolidated real estate fund aggregated $81,949,000 and $66,887,000, respectively. Operating Partnership Noncontrolling interests in the Operating Partnership represent common units of the Operating Partnership that are held by third parties, including management, and units issued to management under equity incentive plans. Common units of the Operating Partnership may be tendered for redemption to the Operating Partnership for cash. We, at our option, may assume that obligation and pay the holder either cash or common shares on a one-for-one basis. Since the number of common shares outstanding is equal to the number of common units owned by us, the redemption value of each common unit is equal to the market value of each common share and distributions paid to each common unitholder is equivalent to dividends paid to common stockholders. As of June 30, 2019 and December 31, 2018, noncontrolling interests in the Operating Partnership on our consolidated balance sheets had a carrying amount of $416,092,000 and $428,982,000, respectively, and a redemption value of $347,170,000 and $315,595,000, respectively. |
Variable Interest Entities ("VI
Variable Interest Entities ("VIEs") | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities ("VIEs") | 1 3 . Variable Interest Entities (“VIEs”) In the normal course of business, we are the general partner of various types of investment vehicles, which may be considered VIEs. We may, from time to time, own equity or debt securities through vehicles, each of which are considered variable interests. Our involvement in financing the operations of the VIEs is generally limited to our investments in the entity. We consolidate these entities when we are deemed to be the primary beneficiary. Consolidated VIEs We are the sole general partner of, and owned approximately 90.4% of, the Operating Partnership as of June 30, 2019. The Operating Partnership is considered a VIE and is consolidated in our consolidated financial statements. Since we conduct our business through and substantially all of our interests are held by the Operating Partnership, the assets and liabilities on our consolidated financial statements represent the assets and liabilities of the Operating Partnership. As of June 30, 2019 and December 31, 2018, the Operating Partnership held interests in consolidated VIEs owning properties, a real estate fund and preferred equity investments that were determined to be VIEs. The assets of these consolidated VIEs may only be used to settle the obligations of the entities and such obligations are secured only by the assets of the entities and are non-recourse to the Operating Partnership or us. The following table summarizes the assets and liabilities of consolidated VIEs of the Operating Partnership. As of (Amounts in thousands) June 30, 2019 December 31, 2018 Real estate, net $ 1,693,813 $ 1,699,618 Cash and restricted cash 69,570 63,450 Investments in unconsolidated joint ventures 69,346 52,923 Preferred equity investments - 36,042 Accounts and other receivables, net 1,239 2,107 Deferred rent receivable 55,070 51,926 Deferred charges, net 22,845 14,160 Intangible assets, net 37,501 45,818 Other assets 22,570 16,635 Total VIE assets $ 1,971,954 $ 1,982,679 Notes and mortgages payable, net $ 1,198,162 $ 1,197,644 Accounts payable and accrued expenses 40,281 24,183 Intangible liabilities, net 25,266 31,582 Other liabilities 4,230 5 Total VIE liabilities $ 1,267,939 $ 1,253,414 Unconsolidated VIEs As of June 30, 2019, the Operating Partnership held variable interests in entities that own our unconsolidated real estate funds that were deemed to be VIEs. The following table summarizes our investments in these unconsolidated real estate funds and the maximum risk of loss from these investments. As of (Amounts in thousands) June 30, 2019 December 31, 2018 Investments $ 8,263 $ 10,352 Asset management fees and other receivables 171,435 (1) 722 Maximum risk of loss $ 179,698 $ 11,074 (1) Includes a $170,000 note receivable from Fund X. Related Parties . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 1 4 . Fair Value Measurements Financial Assets and Liabilities Measured at Fair Value Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of marketable securities and interest rate swaps. The following table summarizes the fair values of these financial assets and liabilities as of the dates set forth below, based on their levels in the fair value hierarchy. As of June 30, 2019 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities (included in "other assets") $ 23,594 $ 23,594 $ - $ - Interest rate swap assets (included in "other assets") 579 - 579 - Total assets $ 24,173 $ 23,594 $ 579 $ - Interest rate swap liabilities (included in "other liabilities") $ 8,139 $ - $ 8,139 $ - Total liabilities $ 8,139 $ - $ 8,139 $ - As of December 31, 2018 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities (included in "other assets") $ 22,660 $ 22,660 $ - $ - Interest rate swap assets (included in "other assets") 16,859 - 16,859 - Total assets $ 39,519 $ 22,660 $ 16,859 $ - Interest rate swap liabilities (included in "other liabilities") $ 48 $ - $ 48 $ - Total liabilities $ 48 $ - $ 48 $ - Financial Assets and Liabilities Not Measured at Fair Value Financial assets and liabilities not measured at fair value on our consolidated balance sheets consists of preferred equity investments, notes and mortgages payable and the revolving credit facility. The following table summarizes the carrying amounts and fair value of these financial instruments as of the dates set forth below. As of June 30, 2019 As of December 31, 2018 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Preferred equity investments (1) $ - $ - $ 36,042 $ 36,339 Total assets $ - $ - $ 36,042 $ 36,339 Notes and mortgages payable $ 3,599,800 $ 3,679,756 $ 3,599,800 $ 3,617,961 Revolving credit facility 170,000 169,996 - - Total liabilities $ 3,769,800 $ 3,849,752 $ 3,599,800 $ 3,617,961 ______________ (1) Preferred Equity Investments. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2019 | |
Revenues [Abstract] | |
Revenues | 1 5 . Revenues Our revenues consist of rental revenues and revenues from contracts with customers. The following table sets forth the details of our revenues. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 Rental revenue $ 181,140 (1) $ 182,722 $ 363,756 (1) $ 360,401 Fee and other income: Fee income: Property management 1,599 1,490 3,241 2,992 Asset management 2,290 1,823 4,608 3,433 Acquisition, disposition and leasing - 1,750 1,331 1,750 Other 324 346 1,032 699 Total fee income 4,213 5,409 10,212 8,874 Other income (2) 3,230 3,288 6,407 6,415 Total fee and other income 7,443 8,697 16,619 15,289 Total revenues $ 188,583 $ 191,419 $ 380,375 $ 375,690 (1) (2) Rental Revenue Rental revenue is recognized in accordance with ASC Topic 842, Leases The following table is a schedule of future undiscounted cash flows under non-cancelable operating leases in effect as of June 30, 2019, for the six month period from July 1, 2019 through December 31, 2019 and each of the five succeeding years commencing January 1, 2020. (Amounts in thousands) 2019 $ 330,437 2020 628,403 2021 615,150 2022 586,448 2023 557,032 2024 523,589 Thereafter 2,649,239 Total $ 5,890,298 Revenue from Contracts with Customers Revenue from contracts with customers, which is primarily comprised of (i) property management fees, (ii) asset management fees, (iii) fees relating to acquisitions, dispositions and leasing services and (iv) other fee income, is recognized in accordance with ASC Topic 606, Revenue From Contracts With Customers Fee income is recognized as and when we satisfy our performance obligations pursuant to contractual agreements. Property management and asset management services are provided continuously over time and revenue is recognized over that time. Fee income relating to acquisitions, dispositions and leasing services is recognized upon completion of the acquisition, disposition or leasing services as required in the contractual agreements. The amount of fee income to be recognized is stated in the contract as a fixed price or as a stated percentage of revenues, contributed capital or transaction price. Fee income is reported in a non-operating segment, and therefore is shown as a reconciling item to net income in Note 22, Segments |
Interest and Other Income, net
Interest and Other Income, net | 6 Months Ended |
Jun. 30, 2019 | |
Interest And Other Income [Abstract] | |
Interest and Other Income, net | 1 6 . Interest and Other Income, net The following table sets forth the details of interest and other income, net. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 Interest income, net $ 1,741 $ 978 $ 3,118 $ 2,004 Mark-to-market of investments in our deferred compensation plans (1) 842 199 2,911 290 Preferred equity investment income (2) - 917 454 1,816 Total interest and other income, net $ 2,583 $ 2,094 $ 6,483 $ 4,110 (1) (2) Preferred Equity Investments |
Interest and Debt Expense
Interest and Debt Expense | 6 Months Ended |
Jun. 30, 2019 | |
Interest And Debt Expense [Abstract] | |
Interest and Debt Expense | 1 7 . Interest and Debt Expense The following table sets forth the details of interest and debt expense. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 Interest expense $ 34,388 $ 34,055 $ 68,511 $ 67,376 Amortization of deferred financing costs 2,825 2,754 5,626 5,515 Total interest and debt expense $ 37,213 $ 36,809 $ 74,137 $ 72,891 |
Incentive Compensation
Incentive Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Compensation | 1 8 . Incentive Compensation Stock-Based Compensation We account for all stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation 2018 Performance-Based Awards Program (“2018 Performance Program”) On January 14, 2019, the Compensation Committee of our Board of Directors (the “Compensation Committee”) approved the 2018 Performance Program. Under the 2018 Performance Program, participants may earn awards in the form of Long Term Incentive Plan (“LTIP”) units based on our Total Shareholder Return (“TSR”) over a three-year performance measurement period beginning on January 1, 2019 and continuing through December 31, 2021, on both an absolute basis and relative basis. Awards granted to our Chief Executive Officer, under the 2018 Performance Program include an additional performance feature requiring threshold TSR performance on both an absolute and a relative basis in order for any awards to be earned. If the designated performance objectives are achieved, awards earned under the 2018 Performance Program are subject to vesting based on continued employment with us through December 31, 2022, with 50.0% of each award vesting upon the conclusion of the performance measurement period, and the remaining 50.0% vesting on December 31, 2022. Furthermore, our Named Executive Officers are required to hold earned awards for an additional year following vesting. The fair value of the awards granted under the 2018 Performance Program on the date of the grant was $8,106,000 and is being amortized into expense over the four-year vesting period using a graded vesting attribution method. 2015 Performance-Based Awards Program (“2015 Performance Program”) On March 18, 2019, the Compensation Committee determined that the performance goals set forth in the 2015 Performance Program were not satisfied during the performance measurement period, which ended on March 17, 2019. Accordingly, all of the 1,109,358 outstanding LTIP units that were granted on March 18, 2016, were forfeited, with no awards being earned. This award had a grant date fair value of $10,914,000 and a remaining unrecognized compensation cost of $810,000 as of June 30, 2019, which will be amortized over a weighted-average period of 0.8 years. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 1 9 . Earnings Per Share The following table summarizes our net income (loss) and the number of common shares used in the computation of basic and diluted income (loss) per common share, which includes the weighted average number of common shares outstanding and the effect of dilutive potential common shares, if any. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands, except per share amounts) 2019 2018 2019 2018 Numerator: Net income (loss) attributable to common stockholders $ 2,455 $ (34,816 ) $ 6,164 $ (33,702 ) Earnings allocated to unvested participating securities (18 ) (18 ) (37 ) (36 ) Numerator for income (loss) per common share - basic and diluted $ 2,437 $ (34,834 ) $ 6,127 $ (33,738 ) Denominator: Denominator for basic income (loss) per common share - weighted average shares 234,330 240,336 233,877 240,324 Effect of dilutive stock-based compensation plans (1) 26 - 31 - Denominator for diluted income (loss) per common share - weighted average shares 234,356 240,336 233,908 240,324 Income (loss) per common share - basic and diluted $ 0.01 $ (0.14 ) $ 0.03 $ (0.14 ) (1) |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Parties | 20 . Related Parties Management Agreements We provide property management, leasing and other related services to certain properties owned by members of the Otto Family. We recognized fee income of $211,000 and $215,000 for the three months ended June 30, 2019 and 2018, respectively, and $420,000 and $424,000 for the six months ended June 30, 2019 and 2018, respectively, As of December 31, 2018, we were owed $51,000 under these agreements, which is included as a component of “accounts and other receivables, net” on our consolidated balance sheet. There were no amounts owed to us under these agreements as of June 30, 2019. We also provide property management, asset management, leasing and other related services to our unconsolidated joint ventures and real estate funds. We recognized fee income of $3,511,000 and $4,558,000 for the three months ended June 30, 2019 and 2018, respectively, and $8,058,000 and $7,094,000 for the six months ended June 30, 2019 and 2018, respectively, in connection with these agreements. As of June 30, 2019 and December 31, 2018, amounts owed to us under these agreements aggregated $1,820,000 and $1,836,000, respectively, which are included as a component of “accounts and other receivables, net” on our consolidated balance sheets. Hamburg Trust Consulting GMBH (“HTC”) We have an agreement with HTC, a licensed broker in Germany, to supervise selling efforts for our private equity real estate funds (or investments in feeder vehicles for these funds) to investors in Germany, including distribution of securitized notes of feeder vehicles for Fund VIII and Fund X. Pursuant to this agreement, we have agreed to pay HTC for the costs incurred to sell investments in these feeder vehicles, which primarily consist of commissions paid to third party agents, and other incremental costs incurred by HTC as a result of the engagement, plus, in each case, a mark-up of 10%. HTC is 100% owned by Albert Behler, our Chairman, Chief Executive Officer and President. We incurred expense of $62,000 and $42,000 for the three months ended June 30, 2019 and 2018, respectively, and $686,000 and $60,000 for the six months ended June 30, 2019 and 2018, respectively, Mannheim Trust Dr. Martin Bussmann (a member of our Board of Directors) is also a trustee and a director of Mannheim Trust, a subsidiary of which leases office space at 712 Fifth Avenue, our 50.0% owned unconsolidated joint venture. The Mannheim Trust, which is for the benefit of Dr. Bussmann’s children, leases 5,593 square feet, which expires in April 2023. Our share of rental income from this lease was $90,000 and $89,000, for the three months ended June 30, 2019 and 2018, respectively, and $181,000 Due from Affiliates At June 30, 2019, we had a $170,000,000 note receivable from Fund X that bears interest at LIBOR plus 220 basis points and is included as “due from affiliates” on our consolidated balance sheet. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 2 1 . Commitments and Contingencies Insurance We carry commercial general liability coverage on our properties, with limits of liability customary within the industry. Similarly, we are insured against the risk of direct and indirect physical damage to our properties including coverage for the perils such as floods, earthquakes and windstorms. Our policies also cover the loss of rental income during an estimated reconstruction period. Our policies reflect limits and deductibles customary in the industry and specific to the buildings and portfolio. We also obtain title insurance policies when acquiring new properties. We currently have coverage for losses incurred in connection with both domestic and foreign terrorist-related activities. While we do carry commercial general liability insurance, property insurance and terrorism insurance with respect to our properties, these policies include limits and terms we consider commercially reasonable. In addition, there are certain losses (including, but not limited to, losses arising from known environmental conditions or acts of war) that are not insured, in full or in part, because they are either uninsurable or the cost of insurance makes it, in our belief, economically impractical to maintain such coverage. Should an uninsured loss arise against us, we would be required to use our own funds to resolve the issue, including litigation costs. We believe the policy specifications and insured limits are adequate given the relative risk of loss, the cost of the coverage and industry practice and, in consultation with our insurance advisors, we believe the properties in our portfolio are adequately insured. Other Commitments and Contingencies We are a party to various claims and routine litigation arising in the ordinary course of business. Some of these claims or others to which we may be subject from time to time, including claims arising specifically from the formation transactions, in connection with our initial public offering, may result in defense costs, settlements, fines or judgments against us, some of which are not, or cannot be, covered by insurance. Payment of any such costs, settlements, fines or judgments that are not insured could have an adverse impact on our financial position and results of operations. Should any litigation arise in connection with the formation transactions, we would contest it vigorously. In addition, certain litigation or the resolution of certain litigation may affect the availability or cost of some of our insurance coverage, which could adversely impact our results of operations and cash flow, expose us to increased risks that would be uninsured, and/or adversely impact our ability to attract officers and directors. The terms of our mortgage debt and certain side letters in place include certain restrictions and covenants which may limit, among other things, certain investments, the incurrence of additional indebtedness and liens and the disposition or other transfer of assets and interests in the borrower and other credit parties, and require compliance with certain debt yield, debt service coverage and loan to value ratios. In addition, our revolving credit facility contains representations, warranties, covenants, other agreements and events of default customary for agreements of this type with comparable companies. As of June 30, 2019, we believe we are in compliance with all of our covenants. 718 Fifth Avenue - Put Right Prior to the formation transactions, an affiliate of our predecessor owned a 25.0% interest in 718 Fifth Avenue, a five-story building containing 19,050 square feet of prime retail space that is located on the southwest corner of 56th Street and Fifth Avenue in New York, (based on its 50.0% interest in a joint venture that held a 50.0% tenancy-in-common interest in the property). Prior to the completion of the formation transactions, this interest was sold to its partner in the 718 Fifth Avenue joint venture, who is also our joint venture partner in 712 Fifth Avenue, New York, New York. In connection with this sale, we granted our joint venture partner a put right, pursuant to which the 712 Fifth Avenue joint venture would be required to purchase the entire direct or indirect interests then held by our joint venture partner or its affiliates in 718 Fifth Avenue at a purchase price equal to the fair market value of such interests. The put right may be exercised at any time with the actual purchase occurring no earlier than 12 months after written notice is provided. If the put right is exercised and the 712 Fifth Avenue joint venture acquires the 50.0% tenancy-in-common interest in the property by our joint venture partner, we will own a 25.0% interest in 718 Fifth Avenue based on current ownership interests. Transfer Tax Assessments During 2017, the New York City Department of Finance issued Notices of Determination (“Notices”) assessing additional transfer taxes (including interest and penalties) in connection with the transfer of interests in certain properties during our 2014 initial public offering. We believe, after consultation with legal counsel, that the likelihood of a loss is reasonably possible, and while it is not possible to predict the outcome of these Notices, we estimate the range of loss could be between $0 and $41,600,000. Since no amount in this range is a better estimate than any other amount within the range, we have not accrued any liability arising from potential losses relating to these Notices in our consolidated financial statements. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segments | 2 2 . Segments Our reportable segments are separated by region based on the three regions in which we conduct our business: New York, San Francisco and Washington, D.C. Our determination of segments is aligned with our method of internal reporting and the way our Chief Executive Officer, who is also our Chief Operating Decision Maker, makes key operating decisions, evaluates financial results and manages our business. The following tables provide Net Operating Income (“NOI”) for each reportable segment for the periods set forth below. For the Three Months Ended June 30, 2019 (Amounts in thousands) Total New York San Francisco Washington, D.C. Other Property-related revenues $ 184,370 $ 118,741 $ 58,431 $ 7,240 $ (42 ) Property-related operating expenses (67,572 ) (46,504 ) (17,479 ) (2,836 ) (753 ) NOI from unconsolidated joint ventures 4,185 2,886 1,213 - 86 NOI (1) $ 120,983 $ 75,123 $ 42,165 $ 4,404 $ (709 ) For the Three Months Ended June 30, 2018 (Amounts in thousands) Total New York San Francisco Washington, D.C. Other Property-related revenues $ 186,010 $ 115,536 $ 55,344 $ 15,435 $ (305 ) Property-related operating expenses (67,646 ) (45,292 ) (15,048 ) (5,736 ) (1,570 ) NOI from unconsolidated joint ventures 4,569 4,493 - - 76 NOI (1) $ 122,933 $ 74,737 $ 40,296 $ 9,699 $ (1,799 ) For the Six Months Ended June 30, 2019 (Amounts in thousands) Total New York San Francisco Washington, D.C. Other Property-related revenues $ 370,163 $ 239,837 $ 115,615 $ 14,643 $ 68 Property-related operating expenses (135,953 ) (94,607 ) (33,825 ) (5,756 ) (1,765 ) NOI from unconsolidated joint ventures 9,596 7,543 1,913 - 140 NOI (1) $ 243,806 $ 152,773 $ 83,703 $ 8,887 $ (1,557 ) For the Six Months Ended June 30, 2018 (Amounts in thousands) Total New York San Francisco Washington, D.C. Other Property-related revenues $ 366,816 $ 229,181 $ 107,243 $ 30,884 $ (492 ) Property-related operating expenses (136,624 ) (92,453 ) (29,164 ) (11,581 ) (3,426 ) NOI from unconsolidated joint ventures 9,309 9,158 - - 151 NOI (1) $ 239,501 $ 145,886 $ 78,079 $ 19,303 $ (3,767 ) (1) (2) The following table provides a reconciliation of NOI to net income (loss) attributable to common stockholders for the periods set forth below. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 NOI $ 120,983 $ 122,933 $ 243,806 $ 239,501 Add (subtract) adjustments to arrive to net income (loss): Fee income 4,213 5,409 10,212 8,874 Depreciation and amortization expense (62,625 ) (64,775 ) (125,714 ) (129,931 ) General and administrative expenses (17,695 ) (17,195 ) (35,138 ) (29,826 ) NOI from unconsolidated joint ventures (4,185 ) (4,569 ) (9,596 ) (9,309 ) Interest and other income, net 2,583 2,094 6,483 4,110 Interest and debt expense (37,213 ) (36,809 ) (74,137 ) (72,891 ) Real estate impairment loss - (46,000 ) - (46,000 ) Other, net (619 ) 2,214 (2,336 ) 1,966 Net income (loss) before income taxes 5,442 (36,698 ) 13,580 (33,506 ) Income tax (expense) benefit (268 ) 120 (1,406 ) (357 ) Net income (loss) 5,174 (36,578 ) 12,174 (33,863 ) Less: net (income) loss attributable to noncontrolling interests in: Consolidated joint ventures (2,408 ) (1,752 ) (5,202 ) (2,807 ) Consolidated real estate fund (53 ) (152 ) (147 ) (582 ) Operating Partnership (258 ) 3,666 (661 ) 3,550 Net income (loss) attributable to common stockholders $ 2,455 $ (34,816 ) $ 6,164 $ (33,702 ) The following table provides the total assets for each of our reportable segments as of the dates set forth below. (Amounts in thousands) Total Assets as of: Total New York San Francisco Washington, D.C. Other June 30, 2019 $ 8,853,875 $ 5,532,532 $ 2,446,639 $ 301,326 $ 573,378 December 31, 2018 8,755,978 5,583,022 2,388,094 305,980 478,882 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conjunction with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted. These consolidated financial statements include the accounts of Paramount and its consolidated subsidiaries, including the Operating Partnership. In the opinion of management, all significant adjustments (which include only normal recurring adjustments) and eliminations (which include intercompany balances and transactions) necessary to present fairly the financial position, results of operations and changes in cash flows have been made. The consolidated balance sheet as of December 31, 2018 was derived from audited financial statements as of that date, but does not include all information and disclosures required by GAAP. These consolidated financial statements 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, 2018, as filed with the SEC. |
Significant Accounting Policies | Significant Accounting Policies There are no material changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2018. |
Use of Estimates | Use of Estimates 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 financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from those estimates. The results of operations for the three and six months ended June 30, 2019, are not necessarily indicative of the operating results for the full year. |
Reclassifications | Reclassifications Certain prior year balances have been reclassified to conform to current year presentation. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Not Materially Impacting Our Financial Statements In June 2016, the FASB issued ASU 2016-13, an update to ASC Topic 326, Financial Instruments – Credit Losses Leases. In August 2018, the FASB issued ASU 2018-13, an update to ASC Topic 820, Fair Value Measurements In December 2018, the FASB issued ASU 2018-20, an update to ASC Topic 842, Leases Recently Issued Accounting Pronouncements Impacting or Potentially Impacting Our Financial Statements In February 2016, the FASB issued ASU 2016-02, an update to ASC Topic 842, Leases While accounting for lessors under ASU 2016-02 is substantially similar to existing lease accounting guidance, lessors are required to separate payments received pursuant to a lease between lease components (payments received towards the leased space) and non-lease components (payments received towards common area maintenance activities). In July 2018, the FASB issued ASU 2018-11, which provided lessors with a practical expedient to not separate lease and non-lease components, if certain criteria are met. Upon the adoption of ASU 2016-02, we elected this practical expedient and accordingly, have combined lease and non-lease components into rental revenue on our consolidated statements of income. We account for both components under ASC Topic 842. ASU 2016-02 also requires companies to account for the impairment of receivables arising from operating leases (previously recorded as bad debt expense, a component of “operating expenses”), as a reduction to “rental income”. Accordingly, beginning on January 1, 2019, impairment of receivables arising from operating leases have been recorded as a reduction of rental income and are no longer reflected as bad debt expense. Furthermore, ASU 2016-02 also updates the definition of initial direct costs for both lessees and lessors to include only incremental costs of a lease that would not have been incurred if the lease had not been obtained. This ASU also provides a package of practical expedients which permits companies not to reassess under ASC Topic 842, its prior conclusions about lease identification, lease classification and initial direct costs. Upon adoption of ASU 2016-02, we elected this practical expedient and accordingly, effective January 1, 2019, we no longer capitalize internal leasing costs. In October 2018, the FASB issued ASU 2018-17, an update to ASC Topic 810, Consolidations. eporting entities to consider indirect interests held by related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety in determining whether a decision-making fee is a variable interest. ASU 2018-17 is effective for permitted. |
Investments in Unconsolidated_2
Investments in Unconsolidated Joint Ventures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summary of Investments and Income from Investments In Unconsolidated Joint Ventures | The following tables summarize our investments in unconsolidated joint ventures as of the dates thereof and the income or loss from these investments for the periods set forth below. (Amounts in thousands) Paramount As of Our Share of Investments: Ownership June 30, 2019 December 31, 2018 712 Fifth Avenue (1) 50.0% $ - $ - 111 Sutter Street 49.0% 43,897 - 60 Wall Street (2) 5.0% 21,031 22,353 One Steuart Lane (2) 30.0% (3) 69,346 52,923 (4) Oder-Center, Germany (2) 9.5% 3,460 3,587 Investments in unconsolidated joint ventures $ 137,734 $ 78,863 (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, Our Share of Net (Loss) Income: 2019 2018 2019 2018 712 Fifth Avenue (1) $ 917 $ 2,608 $ 917 $ 2,608 111 Sutter Street (1,249 ) - (2,121 ) (5) - 60 Wall Street (2) (149 ) (102 ) (298 ) (175 ) One Steuart Lane (2) 8 (16 ) (7 ) (18 ) Oder-Center, Germany (2) 17 31 26 44 (Loss) income from unconsolidated joint ventures $ (456 ) $ 2,521 $ (1,483 ) $ 2,459 (1) (2) (3) (4) (5) |
Summary of Financial Information of Unconsolidated Joint Ventures | The following tables provide the combined summarized financial information of our unconsolidated joint ventures as of the dates and for the periods set forth below. (Amounts in thousands) As of Balance Sheets: June 30, 2019 December 31, 2018 Real estate, net $ 1,463,668 $ 1,236,989 Intangible assets, net 97,811 97,658 Other assets 95,058 91,552 Total assets $ 1,656,537 $ 1,426,199 Notes and mortgages payable, net $ 1,022,881 $ 887,882 Intangible liabilities, net 5,277 - Other liabilities 26,542 22,310 Total liabilities 1,054,700 910,192 Equity 601,837 516,007 Total liabilities and equity $ 1,656,537 $ 1,426,199 (Amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, Income Statements: 2019 2018 2019 2018 Revenues: Rental revenue $ 36,455 $ 35,206 $ 74,679 $ 71,041 Fee and other income 393 167 491 303 Total revenues 36,848 35,373 75,170 71,344 Expenses: Operating expenses 15,274 13,078 29,677 26,605 Depreciation and amortization 15,082 12,032 29,207 24,193 Total expenses 30,356 25,110 58,884 50,798 Other income (expense): Interest and other income, net 201 198 299 368 Interest and debt expense (12,323 ) (9,733 ) (23,850 ) (18,912 ) Net (loss) income before income taxes (5,630 ) 728 (7,265 ) 2,002 Income tax expense - - (8 ) (10 ) Net (loss) income $ (5,630 ) $ 728 $ (7,273 ) $ 1,992 |
Intangible Assets and Liabili_2
Intangible Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets and Liabilities | The following tables summarize our intangible assets (acquired above-market leases and acquired in-place leases) and intangible liabilities (acquired below-market leases) and the related amortization as of the dates and for the periods set forth below. As of (Amounts in thousands) June 30, 2019 December 31, 2018 Intangible assets: Gross amount $ 503,333 $ 515,889 Accumulated amortization (264,007 ) (245,444 ) $ 239,326 $ 270,445 Intangible liabilities: Gross amount $ 179,430 $ 185,191 Accumulated amortization (94,899 ) (89,200 ) $ 84,531 $ 95,991 For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 Amortization of above and below-market leases, net (component of "rental revenue") $ 2,727 $ 4,304 $ 6,003 $ 8,724 Amortization of acquired in-place leases (component of "depreciation and amortization") 12,330 14,721 25,663 30,014 |
Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases and In Place Leases | The following table sets forth annual amortization of acquired above and below-market leases, net and amortization of acquired in-place leases for each of the five succeeding years commencing from January 1, 2020. (Amounts in thousands) For the Year Ending December 31, Above and Below-Market Leases, Net In-Place Leases 2020 $ 6,292 $ 38,324 2021 3,639 28,267 2022 1,173 23,758 2023 4,682 19,089 2024 5,692 14,661 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following table summarizes our outstanding debt. Interest Rate Maturity Fixed/ as of As of (Amounts in thousands) Date Variable Rate June 30, 2019 June 30, 2019 December 31, 2018 Notes and mortgages payable: 1633 Broadway Dec-2022 Fixed (1) 3.54 % $ 1,000,000 $ 1,000,000 Dec-2022 L + 175 bps 4.19 % 46,800 (2) 46,800 (2) 3.57 % 1,046,800 1,046,800 One Market Plaza (3) Feb-2024 Fixed 4.03 % 975,000 975,000 1301 Avenue of the Americas Nov-2021 Fixed 3.05 % 500,000 500,000 Nov-2021 L + 180 bps 4.30 % 350,000 350,000 3.56 % 850,000 850,000 31 West 52nd Street May-2026 Fixed 3.80 % 500,000 500,000 300 Mission Street (3) Oct-2021 Fixed 3.65 % 228,000 228,000 Total notes and mortgages payable 3.73 % 3,599,800 3,599,800 Less: deferred financing costs (28,567 ) (32,883 ) Total notes and mortgages payable, net $ 3,571,233 $ 3,566,917 $1.0 Billion Revolving Credit Facility Jan-2022 L + 115 bps 3.67 % $ 170,000 $ - (1) Derivative Instruments and Hedging Activities (2) (3) |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Interest Rate Swaps | The following table summarizes the fair value of our interest rate swaps that are designated as cash flow hedges. Fair Value as of (Amounts in thousands) June 30, 2019 December 31, 2018 Interest rate swap assets designated as cash flow hedges (included in "other assets") $ 579 $ 16,859 Interest rate swap liabilities designated as cash flow hedges (included in "other liabilities") $ 8,139 $ 48 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component | The following table sets forth changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2019 and 2018, including amounts attributable to noncontrolling interests in the Operating Partnership. For the Three Months Ended For the Six Months Ended June 30, June 30, (Amounts in thousands) 2019 2018 2019 2018 Amount of (loss) income related to the effective portion of cash flow hedges recognized in other comprehensive (loss) income $ (13,608 ) $ 6,123 $ (20,846 ) $ 20,202 Amounts reclassified from accumulated other comprehensive (loss) income (decreasing) increasing interest and debt expense (1,737 ) (328 ) (3,525 ) 144 Amount of (loss) income related to unconsolidated joint ventures recognized in other comprehensive (loss) income (1) (76 ) 103 (184 ) 157 (1) |
Variable Interest Entities ("_2
Variable Interest Entities ("VIEs") (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Consolidated VIEs [Member] | |
Summary of Assets and Liabilities of Consolidated Variable Interest Entities | The following table summarizes the assets and liabilities of consolidated VIEs of the Operating Partnership As of (Amounts in thousands) June 30, 2019 December 31, 2018 Real estate, net $ 1,693,813 $ 1,699,618 Cash and restricted cash 69,570 63,450 Investments in unconsolidated joint ventures 69,346 52,923 Preferred equity investments - 36,042 Accounts and other receivables, net 1,239 2,107 Deferred rent receivable 55,070 51,926 Deferred charges, net 22,845 14,160 Intangible assets, net 37,501 45,818 Other assets 22,570 16,635 Total VIE assets $ 1,971,954 $ 1,982,679 Notes and mortgages payable, net $ 1,198,162 $ 1,197,644 Accounts payable and accrued expenses 40,281 24,183 Intangible liabilities, net 25,266 31,582 Other liabilities 4,230 5 Total VIE liabilities $ 1,267,939 $ 1,253,414 |
Unconsolidated VIEs [Member] | |
Summary of Investments in Unconsolidated Real Estate Funds and Maximum Risk of Loss from Investments | The following table summarizes our investments in these unconsolidated real estate funds and the maximum risk of loss from these investments. As of (Amounts in thousands) June 30, 2019 December 31, 2018 Investments $ 8,263 $ 10,352 Asset management fees and other receivables 171,435 (1) 722 Maximum risk of loss $ 179,698 $ 11,074 (1) Includes a $170,000 note receivable from Fund X. Related Parties . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Values of Financial Assets and Liabilities Measured at Fair Value | The following table summarizes the fair values of these financial assets and liabilities as of the dates set forth below, based on their levels in the fair value hierarchy. As of June 30, 2019 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities (included in "other assets") $ 23,594 $ 23,594 $ - $ - Interest rate swap assets (included in "other assets") 579 - 579 - Total assets $ 24,173 $ 23,594 $ 579 $ - Interest rate swap liabilities (included in "other liabilities") $ 8,139 $ - $ 8,139 $ - Total liabilities $ 8,139 $ - $ 8,139 $ - As of December 31, 2018 (Amounts in thousands) Total Level 1 Level 2 Level 3 Marketable securities (included in "other assets") $ 22,660 $ 22,660 $ - $ - Interest rate swap assets (included in "other assets") 16,859 - 16,859 - Total assets $ 39,519 $ 22,660 $ 16,859 $ - Interest rate swap liabilities (included in "other liabilities") $ 48 $ - $ 48 $ - Total liabilities $ 48 $ - $ 48 $ - |
Summary of Carrying Amounts and Fair Value of Financial Instruments | The following table summarizes the carrying amounts and fair value of these financial instruments as of the dates set forth below. As of June 30, 2019 As of December 31, 2018 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Preferred equity investments (1) $ - $ - $ 36,042 $ 36,339 Total assets $ - $ - $ 36,042 $ 36,339 Notes and mortgages payable $ 3,599,800 $ 3,679,756 $ 3,599,800 $ 3,617,961 Revolving credit facility 170,000 169,996 - - Total liabilities $ 3,769,800 $ 3,849,752 $ 3,599,800 $ 3,617,961 ______________ (1) Preferred Equity Investments. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disaggregation Of Revenue [Abstract] | |
Summary of Revenues | The following table sets forth the details of our revenues. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 Rental revenue $ 181,140 (1) $ 182,722 $ 363,756 (1) $ 360,401 Fee and other income: Fee income: Property management 1,599 1,490 3,241 2,992 Asset management 2,290 1,823 4,608 3,433 Acquisition, disposition and leasing - 1,750 1,331 1,750 Other 324 346 1,032 699 Total fee income 4,213 5,409 10,212 8,874 Other income (2) 3,230 3,288 6,407 6,415 Total fee and other income 7,443 8,697 16,619 15,289 Total revenues $ 188,583 $ 191,419 $ 380,375 $ 375,690 (1) (2) |
Schedule of Future Minimum Cash Rents Under Non-Cancelable Operating Leases | The following table is a schedule of future undiscounted cash flows under non-cancelable operating leases in effect as of June 30, 2019, for the six month period from July 1, 2019 through December 31, 2019 and each of the five succeeding years commencing January 1, 2020. (Amounts in thousands) 2019 $ 330,437 2020 628,403 2021 615,150 2022 586,448 2023 557,032 2024 523,589 Thereafter 2,649,239 Total $ 5,890,298 |
Interest and Other Income, net
Interest and Other Income, net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Interest And Other Income [Abstract] | |
Schedule Of Interest And Other Income, net | The following table sets forth the details of interest and other income, net. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 Interest income, net $ 1,741 $ 978 $ 3,118 $ 2,004 Mark-to-market of investments in our deferred compensation plans (1) 842 199 2,911 290 Preferred equity investment income (2) - 917 454 1,816 Total interest and other income, net $ 2,583 $ 2,094 $ 6,483 $ 4,110 (1) (2) Preferred Equity Investments |
Interest and Debt Expense (Tabl
Interest and Debt Expense (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Interest And Debt Expense [Abstract] | |
Details of Interest and Debt Expense | The following table sets forth the details of interest and debt expense. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 Interest expense $ 34,388 $ 34,055 $ 68,511 $ 67,376 Amortization of deferred financing costs 2,825 2,754 5,626 5,515 Total interest and debt expense $ 37,213 $ 36,809 $ 74,137 $ 72,891 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Earnings Per Share | The following table summarizes our net income (loss) and the number of common shares used in the computation of basic and diluted income (loss) per common share, which includes the weighted average number of common shares outstanding and the effect of dilutive potential common shares, if any. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands, except per share amounts) 2019 2018 2019 2018 Numerator: Net income (loss) attributable to common stockholders $ 2,455 $ (34,816 ) $ 6,164 $ (33,702 ) Earnings allocated to unvested participating securities (18 ) (18 ) (37 ) (36 ) Numerator for income (loss) per common share - basic and diluted $ 2,437 $ (34,834 ) $ 6,127 $ (33,738 ) Denominator: Denominator for basic income (loss) per common share - weighted average shares 234,330 240,336 233,877 240,324 Effect of dilutive stock-based compensation plans (1) 26 - 31 - Denominator for diluted income (loss) per common share - weighted average shares 234,356 240,336 233,908 240,324 Income (loss) per common share - basic and diluted $ 0.01 $ (0.14 ) $ 0.03 $ (0.14 ) (1) |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of NOI for Each Reportable Segment Information | The following tables provide Net Operating Income (“NOI”) for each reportable segment for the periods set forth below. For the Three Months Ended June 30, 2019 (Amounts in thousands) Total New York San Francisco Washington, D.C. Other Property-related revenues $ 184,370 $ 118,741 $ 58,431 $ 7,240 $ (42 ) Property-related operating expenses (67,572 ) (46,504 ) (17,479 ) (2,836 ) (753 ) NOI from unconsolidated joint ventures 4,185 2,886 1,213 - 86 NOI (1) $ 120,983 $ 75,123 $ 42,165 $ 4,404 $ (709 ) For the Three Months Ended June 30, 2018 (Amounts in thousands) Total New York San Francisco Washington, D.C. Other Property-related revenues $ 186,010 $ 115,536 $ 55,344 $ 15,435 $ (305 ) Property-related operating expenses (67,646 ) (45,292 ) (15,048 ) (5,736 ) (1,570 ) NOI from unconsolidated joint ventures 4,569 4,493 - - 76 NOI (1) $ 122,933 $ 74,737 $ 40,296 $ 9,699 $ (1,799 ) For the Six Months Ended June 30, 2019 (Amounts in thousands) Total New York San Francisco Washington, D.C. Other Property-related revenues $ 370,163 $ 239,837 $ 115,615 $ 14,643 $ 68 Property-related operating expenses (135,953 ) (94,607 ) (33,825 ) (5,756 ) (1,765 ) NOI from unconsolidated joint ventures 9,596 7,543 1,913 - 140 NOI (1) $ 243,806 $ 152,773 $ 83,703 $ 8,887 $ (1,557 ) For the Six Months Ended June 30, 2018 (Amounts in thousands) Total New York San Francisco Washington, D.C. Other Property-related revenues $ 366,816 $ 229,181 $ 107,243 $ 30,884 $ (492 ) Property-related operating expenses (136,624 ) (92,453 ) (29,164 ) (11,581 ) (3,426 ) NOI from unconsolidated joint ventures 9,309 9,158 - - 151 NOI (1) $ 239,501 $ 145,886 $ 78,079 $ 19,303 $ (3,767 ) (1) |
Schedule of Reconciliation of NOI to Net Income (Loss) Attributable to Common Stockholders | The following table provides a reconciliation of NOI to net income (loss) attributable to common stockholders for the periods set forth below. For the Three Months Ended June 30, For the Six Months Ended June 30, (Amounts in thousands) 2019 2018 2019 2018 NOI $ 120,983 $ 122,933 $ 243,806 $ 239,501 Add (subtract) adjustments to arrive to net income (loss): Fee income 4,213 5,409 10,212 8,874 Depreciation and amortization expense (62,625 ) (64,775 ) (125,714 ) (129,931 ) General and administrative expenses (17,695 ) (17,195 ) (35,138 ) (29,826 ) NOI from unconsolidated joint ventures (4,185 ) (4,569 ) (9,596 ) (9,309 ) Interest and other income, net 2,583 2,094 6,483 4,110 Interest and debt expense (37,213 ) (36,809 ) (74,137 ) (72,891 ) Real estate impairment loss - (46,000 ) - (46,000 ) Other, net (619 ) 2,214 (2,336 ) 1,966 Net income (loss) before income taxes 5,442 (36,698 ) 13,580 (33,506 ) Income tax (expense) benefit (268 ) 120 (1,406 ) (357 ) Net income (loss) 5,174 (36,578 ) 12,174 (33,863 ) Less: net (income) loss attributable to noncontrolling interests in: Consolidated joint ventures (2,408 ) (1,752 ) (5,202 ) (2,807 ) Consolidated real estate fund (53 ) (152 ) (147 ) (582 ) Operating Partnership (258 ) 3,666 (661 ) 3,550 Net income (loss) attributable to common stockholders $ 2,455 $ (34,816 ) $ 6,164 $ (33,702 ) |
Schedule of Total Assets for Each Reportable Segments Information | The following table provides the total assets for each of our reportable segments as of the dates set forth below. (Amounts in thousands) Total Assets as of: Total New York San Francisco Washington, D.C. Other June 30, 2019 $ 8,853,875 $ 5,532,532 $ 2,446,639 $ 301,326 $ 573,378 December 31, 2018 8,755,978 5,583,022 2,388,094 305,980 478,882 |
Organization and Business - Add
Organization and Business - Additional Information (Details) ft² in Millions | 6 Months Ended |
Jun. 30, 2019ft²Properties | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of office properties | Properties | 13 |
Area of office and retail properties | ft² | 12.2 |
Percentage of ownership in operating partnership | 90.40% |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) - ASU 2016-02 [Member] - USD ($) | Jan. 01, 2019 | Feb. 29, 2016 |
Property Plant And Equipment [Line Items] | ||
Lease term, in months | 12 months | |
Right-of-use asset | $ 4,184,000 | |
Lease liability | $ 4,184,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) ft² in Thousands | Jun. 23, 2019USD ($)ft² | Jun. 30, 2019ft² |
Business Acquisition [Line Items] | ||
Area of office and retail properties | ft² | 12,200 | |
55 Second Street [Member] | ||
Business Acquisition [Line Items] | ||
Area of office and retail properties | ft² | 387 | |
Payments to acquire real estate | $ | $ 407,800,000 | |
55 Second Street [Member] | Other Assets [Member] | ||
Business Acquisition [Line Items] | ||
Deposit for acquisition | $ | $ 20,000,000 |
Investments in Unconsolidated_3
Investments in Unconsolidated Joint Ventures - Additional Information (Details) | Mar. 29, 2019USD ($) | Feb. 07, 2019USD ($)ft²Extensions | Jun. 30, 2019ft² |
Schedule Of Equity Method Investments [Line Items] | |||
Area of office and retail properties | ft² | 12,200,000 | ||
RDF [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Ownership percentage in residential fund | 7.40% | ||
Percentage of interest third party ownership | 92.60% | ||
One Steuart Lane [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of ownership interest in new joint venture | 30.00% | ||
Property funds, ownership percentage | 2.20% | ||
One Steuart Lane [Member] | RDF [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of interest acquired | 5.00% | ||
Additional interest acquired amount | $ 9,339,000 | ||
Property funds, ownership percentage | 30.00% | ||
Joint Venture | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of ownership interest in joint venture held by co-venturer | 70.00% | ||
111 Sutter Street [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Area of office and retail properties | ft² | 293,000 | ||
Business combination, consideration transferred | $ 227,000,000 | ||
Percentage of ownership interest in new joint venture | 49.00% | ||
Percentage of ownership interest in joint venture held by co-venturer | 51.00% | ||
Mortgage financing amount | $ 138,200,000 | ||
Debt instrument, term | 4 years | ||
Debt instrument number of extensions | Extensions | 3 | ||
Debt instrument term of extension | 1 year | ||
111 Sutter Street [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Mortgage financing loan, interest only basis points at LIBOR | 2.15% |
Investments in Unconsolidated_4
Investments in Unconsolidated Joint Ventures - Summary of Investments and Income from Investments In Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Investments in unconsolidated joint ventures | $ 137,734 | $ 137,734 | $ 78,863 | ||
(Loss) income from unconsolidated joint ventures | $ (456) | $ 2,521 | $ (1,483) | $ 2,459 | |
712 Fifth Avenue [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 50.00% | 50.00% | |||
(Loss) income from unconsolidated joint ventures | $ 917 | 2,608 | $ 917 | 2,608 | |
111 Sutter Street [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 49.00% | 49.00% | |||
Investments in unconsolidated joint ventures | $ 43,897 | $ 43,897 | |||
(Loss) income from unconsolidated joint ventures | $ (1,249) | $ (2,121) | |||
60 Wall Street [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 5.00% | 5.00% | |||
Investments in unconsolidated joint ventures | $ 21,031 | $ 21,031 | 22,353 | ||
(Loss) income from unconsolidated joint ventures | $ (149) | (102) | $ (298) | (175) | |
One Steuart Lane [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 30.00% | 30.00% | |||
Investments in unconsolidated joint ventures | $ 69,346 | $ 69,346 | 52,923 | ||
(Loss) income from unconsolidated joint ventures | $ 8 | (16) | $ (7) | (18) | |
Oder-Center, Germany [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method paramount ownership percentage | 9.50% | 9.50% | |||
Investments in unconsolidated joint ventures | $ 3,460 | $ 3,460 | $ 3,587 | ||
(Loss) income from unconsolidated joint ventures | $ 17 | $ 31 | $ 26 | $ 44 |
Investments in Unconsolidated_5
Investments in Unconsolidated Joint Ventures - Summary of Investments and Income from Investments In Unconsolidated Joint Ventures (Parenthetical) (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Schedule Of Equity Method Investments [Line Items] | |||
Adjustment to investments in unconsolidated joint ventures | $ 7,086 | ||
712 Fifth Avenue [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Distributions made in excess of share of earnings recognized negative basis | $ 17,672 | ||
60 Wall Street [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Difference between carrying amount of investment and equity | 2,741 | ||
One Steuart Lane [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Difference between carrying amount of investment and equity | 935 | ||
One Steuart Lane [Member] | ASU 2017-05 [Member] | RDF [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Adjustment to investments in unconsolidated joint ventures | $ 7,086 | ||
Oder-Center, Germany [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Difference between carrying amount of investment and equity | $ 4,759 |
Investments in Unconsolidated_6
Investments in Unconsolidated Joint Ventures - Summary of Financial Information of Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |||||
Real estate, net | $ 1,463,668 | $ 1,463,668 | $ 1,236,989 | ||
Intangible assets, net | 97,811 | 97,811 | 97,658 | ||
Other assets | 95,058 | 95,058 | 91,552 | ||
Total assets | 1,656,537 | 1,656,537 | 1,426,199 | ||
Notes and mortgages payable, net | 1,022,881 | 1,022,881 | 887,882 | ||
Intangible liabilities, net | 5,277 | 5,277 | |||
Other liabilities | 26,542 | 26,542 | 22,310 | ||
Total liabilities | 1,054,700 | 1,054,700 | 910,192 | ||
Equity | 601,837 | 601,837 | 516,007 | ||
Total liabilities and equity | 1,656,537 | 1,656,537 | $ 1,426,199 | ||
Rental revenue | 36,455 | $ 35,206 | 74,679 | $ 71,041 | |
Fee and other income | 393 | 167 | 491 | 303 | |
Total revenues | 36,848 | 35,373 | 75,170 | 71,344 | |
Operating expenses | 15,274 | 13,078 | 29,677 | 26,605 | |
Depreciation and amortization | 15,082 | 12,032 | 29,207 | 24,193 | |
Total expenses | 30,356 | 25,110 | 58,884 | 50,798 | |
Interest and other income, net | 201 | 198 | 299 | 368 | |
Interest and debt expense | (12,323) | (9,733) | (23,850) | (18,912) | |
Net (loss) income before income taxes | (5,630) | 728 | (7,265) | 2,002 | |
Income tax expense | (8) | (10) | |||
Net (loss) income | $ (5,630) | $ 728 | $ (7,273) | $ 1,992 |
Investments in Unconsolidated_7
Investments in Unconsolidated Real Estate Funds - Additional Information (Details) | Jan. 25, 2019USD ($)ft² | Dec. 31, 2018USD ($) | Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($) |
Investment Holdings [Line Items] | ||||||
Area of office and retail properties | ft² | 12,200,000 | 12,200,000 | ||||
Investments in unconsolidated real estate funds | $ 10,352,000 | $ 8,263,000 | $ 8,263,000 | |||
Income (loss) from unconsolidated real estate funds | 19,000 | $ (14,000) | 65,000 | $ (80,000) | ||
Fund VII and VII-H [Member] | Office Building [Member] | ||||||
Investment Holdings [Line Items] | ||||||
Area of office and retail properties | ft² | 64,532 | |||||
Fund VII and VII-H [Member] | Zero Bond Street [Member] | ||||||
Investment Holdings [Line Items] | ||||||
Proceeds from sale of real estate | $ 130,500,000 | |||||
Fund VIII [Member] | ||||||
Investment Holdings [Line Items] | ||||||
Capital commitments | 775,200,000 | |||||
Capital commitments invested | $ 633,250,000 | $ 633,250,000 | ||||
Alternative Investment Fund, Interest Rate | 1.30% | 1.30% | ||||
Fund X [Member] | ||||||
Investment Holdings [Line Items] | ||||||
Capital commitments | 172,000,000 | |||||
Capital commitments invested | $ 170,000,000 | |||||
Alternative Investment Fund, Interest Rate | 8.70% | 8.70% |
Preferred Equity Investments -
Preferred Equity Investments - Additional Information (Details) | Mar. 01, 2019USD ($) | Jun. 30, 2019ft² |
Investment Holdings [Line Items] | ||
Preferred equity ownership percentage | 24.40% | |
Area of office properties | 12,200,000 | |
470 Vanderbilt [Member] | ||
Investment Holdings [Line Items] | ||
Area of office properties | 686,000 | |
Preferred Equity Investments, Dividend Rate | 10.30% | |
Preferred equity investments, dividend rate percentage paid | 8.00% | |
Preferred equity investment redeemed | $ | $ 36,089,000 |
Intangible Assets and Intangibl
Intangible Assets and Intangible Liabilities - Summary of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Intangible assets: | |||||
Gross amount | $ 503,333 | $ 503,333 | $ 515,889 | ||
Accumulated amortization | (264,007) | (264,007) | (245,444) | ||
Intangible assets, Net | 239,326 | 239,326 | 270,445 | ||
Intangible liabilities: | |||||
Gross amount | 179,430 | 179,430 | 185,191 | ||
Accumulated amortization | (94,899) | (94,899) | (89,200) | ||
Intangible Liabilities, Net | 84,531 | 84,531 | $ 95,991 | ||
Amortization of above and below-market leases, net | (6,003) | $ (8,724) | |||
Leases, Acquired-in-Place, Market Adjustment [Member] | |||||
Intangible liabilities: | |||||
Amortization of above and below-market leases, net | (2,727) | $ (4,304) | (6,003) | (8,724) | |
Leases, Acquired-in-Place [Member] | |||||
Intangible liabilities: | |||||
Amortization of acquired in-place leases (component of "depreciation and amortization") | $ 12,330 | $ 14,721 | $ 25,663 | $ 30,014 |
Intangible Assets and Intangi_2
Intangible Assets and Intangible Liabilities - Schedule of Estimated Annual Amortization of Acquired Below-Market Leases, Net of Acquired Above-Market Leases and In Place Leases (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2020 | $ (6,292) |
2021 | (3,639) |
2022 | (1,173) |
2023 | (4,682) |
2024 | (5,692) |
Leases, Acquired-in-Place [Member] | |
Finite Lived Intangible Assets [Line Items] | |
2020 | 38,324 |
2021 | 28,267 |
2022 | 23,758 |
2023 | 19,089 |
2024 | $ 14,661 |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Notes and mortgages payable, Interest Rate | 3.73% | |
Notes and mortgages payable | $ 3,599,800 | $ 3,599,800 |
Credit Facility | 170,000 | 0 |
Less: deferred financing costs | (28,567) | (32,883) |
Total notes and mortgages payable, net | $ 3,571,233 | 3,566,917 |
Credit Facility With Variable Rate [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2022-01 | |
Interest Rate | 3.67% | |
Credit Facility | $ 170,000 | |
Credit Facility With Variable Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Fixed/Variable Rate | 1.15% | |
1633 Broadway [Member] | ||
Debt Instrument [Line Items] | ||
Notes and mortgages payable, Interest Rate | 3.57% | |
Notes and mortgages payable | $ 1,046,800 | 1,046,800 |
1633 Broadway [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2022-12 | |
Notes and mortgages payable, Interest Rate | 3.54% | |
Notes and mortgages payable | $ 1,000,000 | 1,000,000 |
1633 Broadway [Member] | Mortgages and Notes Payable with Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2022-12 | |
Notes and mortgages payable, Interest Rate | 4.19% | |
Notes and mortgages payable | $ 46,800 | 46,800 |
1633 Broadway [Member] | Mortgages and Notes Payable with Variable Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Fixed/Variable Rate | 1.75% | |
One Market Plaza [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2024-02 | |
Notes and mortgages payable, Interest Rate | 4.03% | |
Notes and mortgages payable | $ 975,000 | 975,000 |
1301 Avenue of Americas [Member] | ||
Debt Instrument [Line Items] | ||
Notes and mortgages payable, Interest Rate | 3.56% | |
Notes and mortgages payable | $ 850,000 | 850,000 |
1301 Avenue of Americas [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2021-11 | |
Notes and mortgages payable, Interest Rate | 3.05% | |
Notes and mortgages payable | $ 500,000 | 500,000 |
1301 Avenue of Americas [Member] | Mortgages and Notes Payable with Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2021-11 | |
Notes and mortgages payable, Interest Rate | 4.30% | |
Notes and mortgages payable | $ 350,000 | 350,000 |
1301 Avenue of Americas [Member] | Mortgages and Notes Payable with Variable Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Fixed/Variable Rate | 1.80% | |
31 West 52nd Street [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2026-05 | |
Notes and mortgages payable, Interest Rate | 3.80% | |
Notes and mortgages payable | $ 500,000 | 500,000 |
300 Mission Street [Member] | Mortgages and Notes Payable with Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | 2021-10 | |
Notes and mortgages payable, Interest Rate | 3.65% | |
Notes and mortgages payable | $ 228,000 | $ 228,000 |
Debt - Summary of Outstanding_2
Debt - Summary of Outstanding Debt (Parenthetical) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
1633 Broadway [Member] | Mortgages and Notes Payable with Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Additional Borrowing Capacity Subject To Performance Hurdles | $ 200,000,000 | |
One Market Plaza [Member] | ||
Debt Instrument [Line Items] | ||
Ownership interest rate of property | 49.00% | 49.00% |
300 Mission Street [Member] | ||
Debt Instrument [Line Items] | ||
Ownership interest rate of property | 31.10% | 31.10% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | ||||
Change in value of interest rate swaps | $ (15,345,000) | $ 5,795,000 | $ (24,371,000) | $ 20,346,000 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | ||||
Derivative [Line Items] | ||||
Change in value of interest rate swaps | (15,345,000) | $ 5,795,000 | (24,371,000) | $ 20,346,000 |
Estimated accumulated other comprehensive (loss) income reclassified to interest expense in the next twelve months | 653,000 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | 1633 Broadway [Member] | Cash Flow Hedges [Member] | ||||
Derivative [Line Items] | ||||
Aggregate notional amount | 1,000,000,000 | 1,000,000,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap March Two Thousand Eighteen [Member] | 1633 Broadway [Member] | Cash Flow Hedges [Member] | ||||
Derivative [Line Items] | ||||
Aggregate notional amount | $ 400,000,000 | $ 400,000,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Summary of Fair Value of Interest Rate Swaps (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Interest rate swap assets | $ 579 | $ 16,859 |
Interest rate swap liabilities | 8,139 | 48 |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Interest rate swap assets | 579 | 16,859 |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Interest rate swap liabilities | $ 8,139 | $ 48 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 7 Months Ended | 24 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jul. 31, 2019 | Jul. 31, 2019 | Aug. 01, 2017 | |
Class of Stock [Line Items] | |||||
Common stock shares authorized amount | $ 200,000,000 | ||||
Stock repurchased | 474,500 | ||||
Stock repurchased, value | $ 6,488,000 | $ 6,488,000 | |||
Subsequent Event [Member] | |||||
Class of Stock [Line Items] | |||||
Stock repurchased | 889,549 | 8,455,150 | |||
Stock repurchased, value | $ 12,166,000 | $ 117,549,000 | |||
Stock repurchased, price per share | $ 13.68 | $ 13.92 | |||
Stock repurchase amount available for future repurchase | $ 82,451,000 | $ 82,451,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||||
Amount of (loss) income related to the effective portion of cash flow hedges recognized in other comprehensive (loss) income | $ (13,608) | $ 6,123 | $ (20,846) | $ 20,202 | |
Amounts reclassified from accumulated other comprehensive (loss) income (decreasing) increasing interest and debt expense | (1,737) | (328) | (3,525) | 144 | |
Amount of (loss) income related to unconsolidated joint ventures recognized in other comprehensive (loss) income | [1] | $ (76) | $ 103 | $ (184) | $ 157 |
[1] | Represents foreign currency translation adjustments. No amounts were reclassified from accumulated other comprehensive (loss) income during any of the periods set forth above. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income - Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Parenthetical) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||||
Amounts reclassified from accumulated other comprehensive (loss) income | $ 0 | $ 0 | $ 0 | $ 0 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | ||
Consolidated joint ventures | $ 365,278 | $ 394,995 |
Noncontrolling interests in consolidated real estate fund aggregated | 81,949 | 66,887 |
Operating partnerships | 416,092 | 428,982 |
Redemption value | $ 347,170 | $ 315,595 |
Common units conversion basis | one-for-one |
Variable Interest Entities ("_3
Variable Interest Entities ("VIEs") - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entities [Abstract] | |
Percentage of ownership in operating partnership | 90.40% |
Variable Interest Entities ("_4
Variable Interest Entities ("VIEs") - Summary of Assets and Liabilities of Consolidated Variable Interest Entities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||||
Real estate, net | $ 7,414,766 | $ 7,457,012 | |||
Cash and restricted cash | 306,379 | 365,409 | $ 266,285 | $ 250,425 | |
Preferred equity investments | 36,042 | ||||
Accounts and other receivables, net | 19,695 | 20,076 | |||
Deferred rent receivable | 289,565 | 267,456 | |||
Deferred charges, net | 130,550 | 117,858 | |||
Intangible assets, net | 239,326 | 270,445 | |||
Other assets | 137,597 | 132,465 | |||
Total assets | [1] | 8,853,875 | 8,755,978 | ||
Notes and mortgages payable, net | 3,599,800 | 3,599,800 | |||
Accounts payable and accrued expenses | 124,460 | 124,334 | |||
Intangible liabilities, net | 84,531 | 95,991 | |||
Other liabilities | 64,309 | 51,170 | |||
Total liabilities | [1] | 4,040,486 | 3,864,314 | ||
Variable Interest Entities [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Real estate, net | 1,693,813 | 1,699,618 | |||
Cash and restricted cash | 69,570 | 63,450 | |||
Investments in unconsolidated joint ventures | 69,346 | 52,923 | |||
Preferred equity investments | 36,042 | ||||
Accounts and other receivables, net | 1,239 | 2,107 | |||
Deferred rent receivable | 55,070 | 51,926 | |||
Deferred charges, net | 22,845 | 14,160 | |||
Intangible assets, net | 37,501 | 45,818 | |||
Other assets | 22,570 | 16,635 | |||
Total assets | 1,971,954 | 1,982,679 | |||
Notes and mortgages payable, net | 1,198,162 | 1,197,644 | |||
Accounts payable and accrued expenses | 40,281 | 24,183 | |||
Intangible liabilities, net | 25,266 | 31,582 | |||
Other liabilities | 4,230 | 5 | |||
Total liabilities | $ 1,267,939 | $ 1,253,414 | |||
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 90.4% as of June 30, 2019. The assets and liabilities of the Operating Partnership, as of June 30, 2019, include $1,971,954 and $1,267,939 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 13, Variable Interest Entities (“VIEs”). |
Variable Interest Entities ("_5
Variable Interest Entities ("VIEs") - Summary of Investments in Unconsolidated Real Estate Funds and Maximum Risk of Loss from Investments (Details) - Unconsolidated Real Estate Funds [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Value of Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | $ 8,263 | $ 10,352 |
Asset Management Fees and Other Receivables [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | 171,435 | 722 |
Maximum Risk of Loss [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated real estate funds | $ 179,698 | $ 11,074 |
Variable Interest Entities ("_6
Variable Interest Entities ("VIEs") - Summary of Investments in Unconsolidated Real Estate Funds and Maximum Risk of Loss from Investments (Parenthetical) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Variable Interest Entity [Line Items] | |
Due from Affiliates | $ 170,000 |
Fund X [Member] | |
Variable Interest Entity [Line Items] | |
Due from Affiliates | $ 170,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Values of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities (included in "other assets") | $ 23,594 | $ 22,660 |
Interest rate swap assets (included in "other assets") | 579 | 16,859 |
Total assets | 24,173 | 39,519 |
Interest rate swap liabilities (included in "other liabilities") | 8,139 | 48 |
Total liabilities | 8,139 | 48 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities (included in "other assets") | 23,594 | 22,660 |
Total assets | 23,594 | 22,660 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swap assets (included in "other assets") | 579 | 16,859 |
Total assets | 579 | 16,859 |
Interest rate swap liabilities (included in "other liabilities") | 8,139 | 48 |
Total liabilities | $ 8,139 | $ 48 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amounts and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total assets | $ 24,173 | $ 39,519 |
Total liabilities | 8,139 | 48 |
Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Preferred equity investments | 36,042 | |
Total assets | 36,042 | |
Notes and mortgages payable | 3,599,800 | 3,599,800 |
Revolving credit facility | 170,000 | |
Total liabilities | 3,769,800 | 3,599,800 |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Preferred equity investments | 36,339 | |
Total assets | 36,339 | |
Notes and mortgages payable | 3,679,756 | 3,617,961 |
Revolving credit facility | 169,996 | |
Total liabilities | $ 3,849,752 | $ 3,617,961 |
Revenues - Summary of Revenues
Revenues - Summary of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Rental revenue | $ 181,140 | $ 182,722 | $ 363,756 | $ 360,401 |
Fee income: | ||||
Total fee income | 4,213 | 5,409 | 10,212 | 8,874 |
Other income | 3,230 | 3,288 | 6,407 | 6,415 |
Total fee and other income | 7,443 | 8,697 | 16,619 | 15,289 |
Total revenues | 188,583 | 191,419 | 380,375 | 375,690 |
Property Management Fees [Member] | ||||
Fee income: | ||||
Total fee income | 1,599 | 1,490 | 3,241 | 2,992 |
Asset Management Fees [Member] | ||||
Fee income: | ||||
Total fee income | 2,290 | 1,823 | 4,608 | 3,433 |
Acquisition, Disposition and Leasing Fee [Member] | ||||
Fee income: | ||||
Total fee income | 1,750 | 1,331 | 1,750 | |
Other Fee Income [Member] | ||||
Fee income: | ||||
Total fee income | $ 324 | $ 346 | $ 1,032 | $ 699 |
Revenues - Summary of Revenue_2
Revenues - Summary of Revenues (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Operating Leases Lease Income [Abstract] | ||
Variable rental revenue related to tenant reimbursements | $ 15,314 | $ 32,687 |
Revenues - Additional Informati
Revenues - Additional Information (Details) | Jun. 30, 2019 |
Minimum [Member] | |
Lessor, Operating Lease, Description [Abstract] | |
Operating lease term | 5 years |
Maximum [Member] | |
Lessor, Operating Lease, Description [Abstract] | |
Operating lease term | 15 years |
Revenues - Schedule of Future M
Revenues - Schedule of Future Minimum Cash Rents Under Non-Cancelable Operating Leases (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Lessor Operating Lease Payments Fiscal Year Maturity [Abstract] | |
2019 | $ 330,437 |
2020 | 628,403 |
2021 | 615,150 |
2022 | 586,448 |
2023 | 557,032 |
2024 | 523,589 |
Thereafter | 2,649,239 |
Total | $ 5,890,298 |
Interest and Other Income, ne_2
Interest and Other Income, net - Schedule Of Interest And Other Income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest And Other Income [Abstract] | ||||
Interest income, net | $ 1,741 | $ 978 | $ 3,118 | $ 2,004 |
Mark-to-market of investments in our deferred compensation plans | 842 | 199 | 2,911 | 290 |
Preferred equity investment income | 917 | 454 | 1,816 | |
Total interest and other income, net | $ 2,583 | $ 2,094 | $ 6,483 | $ 4,110 |
Interest and Other Income, ne_3
Interest and Other Income, net - Schedule Of Interest And Other Income, net (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | |||
Preferred equity ownership percentage | 24.40% | ||
PGRESS Equity Holdings L.P. [Member] | |||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | |||
Preferred equity investment income, attributable to parent | $ 223 | $ 111 | $ 442 |
Preferred equity ownership percentage | 24.40% |
Interest and Debt Expense - Det
Interest and Debt Expense - Details of Interest and Debt Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest And Debt Expense [Abstract] | ||||
Interest expense | $ 34,388 | $ 34,055 | $ 68,511 | $ 67,376 |
Amortization of deferred financing costs | 2,825 | 2,754 | 5,626 | 5,515 |
Total interest and debt expense | $ 37,213 | $ 36,809 | $ 74,137 | $ 72,891 |
Incentive Compensation - Additi
Incentive Compensation - Additional Information (Details) - USD ($) | Mar. 18, 2019 | Jan. 14, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 5,083,000 | $ 4,650,000 | $ 12,685,000 | $ 10,915,000 | ||
Equity Incentive Plan [Member] | Full Value Awards [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares available for grant | 8,302,793 | 8,302,793 | ||||
2018 Performance Program [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Performance measurement period, term | 3 years | |||||
Performance measurement period, start date | Jan. 1, 2019 | |||||
Performance measurement period, end date | Dec. 31, 2021 | |||||
Fair value of awards granted | $ 8,106,000 | |||||
Vesting period | 4 years | |||||
2018 Performance Program [Member] | Share-Based Compensation Award Tranche One [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of the awards that vest | 50.00% | |||||
2018 Performance Program [Member] | Share-Based Compensation Award Tranche Two [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of the awards that vest | 50.00% | |||||
2015 Performance Program [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Performance measurement period, units forfeited | 1,109,358 | |||||
Fair value granted | $ 10,914,000 | |||||
Unrecognized compensation cost | $ 810,000 | $ 810,000 | ||||
Unrecognized compensation cost expected to be recognized over a weighted-average period | 9 months 18 days |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income (loss) attributable to common stockholders | $ 2,455 | $ (34,816) | $ 6,164 | $ (33,702) |
Earnings allocated to unvested participating securities | (18) | (18) | (37) | (36) |
Numerator for income (loss) per common share - basic and diluted | $ 2,437 | $ (34,834) | $ 6,127 | $ (33,738) |
Denominator: | ||||
Denominator for basic income (loss) per common share - weighted average shares | 234,329,904 | 240,336,485 | 233,877,117 | 240,324,183 |
Effect of dilutive stock-based compensation plans | 26,000 | 31,000 | ||
Denominator for diluted income (loss) per common share - weighted average shares | 234,355,864 | 240,336,485 | 233,908,236 | 240,324,183 |
Income (loss) per common share - basic and diluted | $ 0.01 | $ (0.14) | $ 0.03 | $ (0.14) |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Computation of Earnings Per Share (Parenthetical) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Effect of dilutive securities excluded from computation of earning per share | 26,812 | 27,846 | 27,180 | 27,730 |
Related Parties - Additional In
Related Parties - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)ft² | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||||
Fee and other income | $ 7,443,000 | $ 8,697,000 | $ 16,619,000 | $ 15,289,000 | |
Accounts and other receivables, net | 19,695,000 | 19,695,000 | $ 20,076,000 | ||
Property management, asset management, leasing and other related services fee income | 4,213,000 | 5,409,000 | 10,212,000 | 8,874,000 | |
Transaction related costs | 182,000 | 293,000 | 918,000 | 413,000 | |
Accounts payable and accrued expenses | $ 124,460,000 | $ 124,460,000 | 124,334,000 | ||
Area of related party lease | ft² | 12,200,000 | 12,200,000 | |||
Note receivables from affiliates | $ 170,000,000 | $ 170,000,000 | |||
712 Fifth Avenue [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity method paramount ownership percentage | 50.00% | 50.00% | |||
CNBB-RDF Holdings Otto Family [Member] | Management Agreements [Member] | |||||
Related Party Transaction [Line Items] | |||||
Fee and other income | $ 211,000 | 215,000 | $ 420,000 | 424,000 | |
Accounts and other receivables, net | 0 | 0 | 51,000 | ||
Unconsolidated Joint Ventures and Real Estate Funds [Member] | Management Agreements [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts and other receivables, net | 1,820,000 | 1,820,000 | 1,836,000 | ||
Property management, asset management, leasing and other related services fee income | $ 3,511,000 | 4,558,000 | $ 8,058,000 | 7,094,000 | |
Hamburg Trust Consulting GMBH ("HTC") [Member] | |||||
Related Party Transaction [Line Items] | |||||
Mark-up cost percentage | 10.00% | 10.00% | |||
Transaction related costs | $ 62,000 | 42,000 | $ 686,000 | 60,000 | |
Accounts payable and accrued expenses | $ 123,000 | $ 123,000 | $ 40,000 | ||
Hamburg Trust Consulting GMBH ("HTC") [Member] | Chairman, Chief Executive Officer and President [Member] | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership | 100.00% | 100.00% | |||
Mannheim Trust [Member] | Board of Director [Member] | 712 Fifth Avenue [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity method paramount ownership percentage | 50.00% | 50.00% | |||
Area of related party lease | ft² | 5,593 | 5,593 | |||
Lease rental income | $ 90,000 | $ 89,000 | $ 181,000 | $ 181,000 | |
Fund X [Member] | |||||
Related Party Transaction [Line Items] | |||||
Note receivables from affiliates | $ 170,000,000 | $ 170,000,000 | |||
Note receivables basis spread on variable rate | 2.20% | 2.20% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 6 Months Ended | ||
Jun. 30, 2019ft² | Feb. 16, 2018USD ($) | Nov. 23, 2014ft² | |
Other Commitments [Line Items] | |||
Area of office properties | ft² | 12,200,000 | ||
Minimum [Member] | New York State Division Of Taxation And Finance [Member] | |||
Other Commitments [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ | $ 0 | ||
Maximum [Member] | New York State Division Of Taxation And Finance [Member] | |||
Other Commitments [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ | $ 41,600,000 | ||
718 Fifth Avenue [Member] | |||
Other Commitments [Line Items] | |||
Percentage of tenancy-in-common interest in property | 50.00% | ||
Put right notice period | 12 months | ||
712 Fifth Avenue [Member] | |||
Other Commitments [Line Items] | |||
Equity method paramount ownership percentage | 50.00% | ||
Owned by Affiliate [Member] | 718 Fifth Avenue [Member] | Third Party Affiliate [Member] | |||
Other Commitments [Line Items] | |||
Equity method paramount ownership percentage | 25.00% | ||
Owned by Affiliate [Member] | Parent Company [Member] | Put Right Exercised [Member] | 718 Fifth Avenue [Member] | |||
Other Commitments [Line Items] | |||
Pre IPO ownership percentage | 25.00% | ||
Owned by Affiliate [Member] | Retail Type Space [Member] | 718 Fifth Avenue [Member] | |||
Other Commitments [Line Items] | |||
Area of office properties | ft² | 19,050 |
Segments - Additional Informati
Segments - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segments - Schedule of NOI for
Segments - Schedule of NOI for Each Reportable Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Property-related revenues | $ 184,370 | $ 186,010 | $ 370,163 | $ 366,816 |
Property-related operating expenses | (67,572) | (67,646) | (135,953) | (136,624) |
NOI from unconsolidated joint ventures | 4,185 | 4,569 | 9,596 | 9,309 |
NOI | 120,983 | 122,933 | 243,806 | 239,501 |
New York [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property-related revenues | 118,741 | 115,536 | 239,837 | 229,181 |
Property-related operating expenses | (46,504) | (45,292) | (94,607) | (92,453) |
NOI from unconsolidated joint ventures | 2,886 | 4,493 | 7,543 | 9,158 |
NOI | 75,123 | 74,737 | 152,773 | 145,886 |
San Francisco [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property-related revenues | 58,431 | 55,344 | 115,615 | 107,243 |
Property-related operating expenses | (17,479) | (15,048) | (33,825) | (29,164) |
NOI from unconsolidated joint ventures | 1,213 | 1,913 | ||
NOI | 42,165 | 40,296 | 83,703 | 78,079 |
Washington, D.C. [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property-related revenues | 7,240 | 15,435 | 14,643 | 30,884 |
Property-related operating expenses | (2,836) | (5,736) | (5,756) | (11,581) |
NOI | 4,404 | 9,699 | 8,887 | 19,303 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property-related revenues | (42) | (305) | 68 | (492) |
Property-related operating expenses | (753) | (1,570) | (1,765) | (3,426) |
NOI from unconsolidated joint ventures | 86 | 76 | 140 | 151 |
NOI | $ (709) | $ (1,799) | $ (1,557) | $ (3,767) |
Segments - Schedule of Reconcil
Segments - Schedule of Reconciliation of NOI to Net Income (Loss) Attributable to Common Stockholders (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting [Abstract] | ||||
NOI | $ 120,983 | $ 122,933 | $ 243,806 | $ 239,501 |
Fee income | 4,213 | 5,409 | 10,212 | 8,874 |
Depreciation and amortization expense | (62,625) | (64,775) | (125,714) | (129,931) |
General and administrative expenses | (17,695) | (17,195) | (35,138) | (29,826) |
NOI from unconsolidated joint ventures | (4,185) | (4,569) | (9,596) | (9,309) |
Interest and other income, net | 2,583 | 2,094 | 6,483 | 4,110 |
Interest and debt expense | (37,213) | (36,809) | (74,137) | (72,891) |
Real estate impairment loss | (46,000) | (46,000) | ||
Other, net | (619) | 2,214 | (2,336) | 1,966 |
Net income (loss) before income taxes | 5,442 | (36,698) | 13,580 | (33,506) |
Income tax (expense) benefit | (268) | 120 | (1,406) | (357) |
Net income (loss) | 5,174 | (36,578) | 12,174 | (33,863) |
Consolidated joint ventures | (2,408) | (1,752) | (5,202) | (2,807) |
Consolidated real estate fund | (53) | (152) | (147) | (582) |
Operating Partnership | (258) | 3,666 | (661) | 3,550 |
Net income (loss) attributable to common stockholders | $ 2,455 | $ (34,816) | $ 6,164 | $ (33,702) |
Segments - Schedule of Total As
Segments - Schedule of Total Assets for Each Reportable Segments Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total assets | [1] | $ 8,853,875 | $ 8,755,978 |
New York [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 5,532,532 | 5,583,022 | |
San Francisco [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,446,639 | 2,388,094 | |
Washington, D.C. [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 301,326 | 305,980 | |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 573,378 | $ 478,882 | |
[1] | Represents the consolidated assets and liabilities of Paramount Group Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership”). The Operating Partnership is a consolidated variable interest entity (“VIE”), of which we are the sole general partner and own approximately 90.4% as of June 30, 2019. The assets and liabilities of the Operating Partnership, as of June 30, 2019, include $1,971,954 and $1,267,939 of assets and liabilities, respectively, of certain VIEs that are consolidated by the Operating Partnership. See Note 13, Variable Interest Entities (“VIEs”). |