Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy.



(Amounts in thousands)	As of March 31, 2020
	Total		Level 1		Level 2		Level 3
Real estate fund investments	$	45,129	$	—	$	—	$	45,129
Deferred compensation plan assets ($12,116 included in restricted cash and $78,772 in other assets)	90,888		60,320		—		30,568
Loans receivable ($40,547 included in investments in partially owned entities and $11,443 in other assets)	51,990		—		—		51,990
Interest rate swaps (included in other assets)	94		—		94		—
Total assets	$	188,101	$	60,320	$	94	$	127,687

Mandatorily redeemable instruments (included in other liabilities)	$	49,938	$	49,938	$	—	$	—
Interest rate swaps (included in other liabilities)	81,601		—		81,601		—
Total liabilities	$	131,539	$	49,938	$	81,601	$	—

(Amounts in thousands)	As of December 31, 2019
	Total		Level 1		Level 2		Level 3
Marketable securities	$	33,313	$	33,313	$	—	$	—
Real estate fund investments	222,649		—		—		222,649
Deferred compensation plan assets ($11,819 included in restricted cash and $91,954 in other assets)	103,773		71,338		—		32,435
Interest rate swaps (included in other assets)	4,327		—		4,327		—
Total assets	$	364,062	$	104,651	$	4,327	$	255,084

Mandatorily redeemable instruments (included in other liabilities)	$	50,561	$	50,561	$	—	$	—
Interest rate swaps (included in other liabilities)	40,354		—		40,354		—
Total liabilities	$	90,915	$	50,561	$	40,354	$	—

The table below summarizes the carrying amounts and fair value of these financial instruments.



(Amounts in thousands)		As of March 31, 2020					As of December 31, 2019
		Carrying Amount			Fair Value		Carrying Amount			Fair Value
Cash equivalents		$	1,422,502		$	1,423,000	$	1,276,815		$	1,277,000
Debt:
	Mortgages payable	$	5,670,928		$	5,689,000	$	5,670,016		$	5,714,000
	Senior unsecured notes	450,000			434,000		450,000			468,000
	Unsecured term loan	800,000			800,000		750,000			750,000
	Unsecured revolving credit facilities	1,075,000			1,075,000		575,000			575,000
	Total	$	7,995,928	⁽¹⁾	$	7,998,000	$	7,445,016	⁽¹⁾	$	7,507,000

____________________

(1)

Excludes $35,171 and $38,407 of deferred financing costs, net and other as of March 31, 2020 and December 31, 2019, respectively.

The following table summarizes our consolidated derivative instruments, all of which hedge variable rate debt.



(Amounts in thousands)	As of March 31, 2020
						Variable Rate
Hedged Item (Interest rate swaps)	Fair Value		Notional Amount			Spread over LIBOR	Interest Rate	Swapped Rate	Expiration Date
Included in other assets:
Other	$	94	$	175,000

Included in other liabilities:
Unsecured term loan	$	68,439	$	750,000	⁽¹⁾	L+100	1.94%	3.87%	10/23
33-00 Northern Boulevard mortgage loan	9,141		100,000			L+180	2.81%	4.14%	1/25
888 Seventh Avenue mortgage loan	3,077		375,000			L+170	2.62%	3.25%	12/20
770 Broadway mortgage loan	944		700,000			L+175	2.76%	2.56%	9/20
	$	81,601	$	1,925,000

____________________

(1)

Remaining $50,000 balance of our unsecured term loan bears interest at a floating rate of LIBOR plus 1.00%.

The following table summarizes our consolidated derivative instruments, all of which hedge variable rate debt.



(Amounts in thousands)	As of March 31, 2020
						Variable Rate
Hedged Item (Interest rate swaps)	Fair Value		Notional Amount			Spread over LIBOR	Interest Rate	Swapped Rate	Expiration Date
Included in other assets:
Other	$	94	$	175,000

Included in other liabilities:
Unsecured term loan	$	68,439	$	750,000	⁽¹⁾	L+100	1.94%	3.87%	10/23
33-00 Northern Boulevard mortgage loan	9,141		100,000			L+180	2.81%	4.14%	1/25
888 Seventh Avenue mortgage loan	3,077		375,000			L+170	2.62%	3.25%	12/20
770 Broadway mortgage loan	944		700,000			L+175	2.76%	2.56%	9/20
	$	81,601	$	1,925,000

____________________

(1)

Remaining $50,000 balance of our unsecured term loan bears interest at a floating rate of LIBOR plus 1.00%.

Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate fund investments.



	Range		Weighted Average (based on fair value of investments)
Unobservable Quantitative Input	March 31, 2020	December 31, 2019	March 31, 2020	December 31, 2019
Discount rates	10.0% to 15.0%	8.2% to 12.0%	13.8%	9.3%
Terminal capitalization rates	6.0% to 9.9%	4.6% to 8.2%	7.6%	5.3%

The table below summarizes the changes in the fair value of real estate fund investments that are classified as Level 3.



(Amounts in thousands)	For the Three Months Ended March 31,
	2020			2019
Beginning balance	$	222,649		$	318,758
Purchases/additional fundings	6,000			4,000
Net unrealized (loss) gain on held investments	(183,520		)	100
Ending balance	$	45,129		$	322,858

The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3.



(Amounts in thousands)	For the Three Months Ended March 31,
	2020			2019
Beginning balance	$	32,435		$	37,808
Sales	(2,475		)	(2,114		)
Purchases	1,293			908
Realized and unrealized (losses) gains	(1,229		)	523
Other, net	544			437
Ending balance	$	30,568		$	37,562

Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these loans receivable.



	March 31, 2020
	Range	Weighted Average (based on fair value of investments)
Unobservable Quantitative Input
Discount rates	6.0% to 14.0%	7.0%
Terminal capitalization rates	5.0% to 6.0%	5.1%

The table below summarizes the changes in fair value of loans receivable that are classified as Level 3.



(Amounts in thousands)	For the Three Months Ended March 31, 2020
Beginning balance	$	59,251
Credit losses	(7,261		)
Ending balance	$	51,990