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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Aggregate the Fair Values of these Financial Assets and Liabilities

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


(Amounts in thousands)	As of December 31, 2024
	Total		Level 1		Level 2		Level 3
Deferred compensation plan assets ($8,958 included in restricted cash and $105,622 in other assets)	$	114,580	$	70,025	$	—	$	44,555
Loans receivable ($32,984 included in investments in partially owned entities and $52,335 in other assets)	85,319		—		—		85,319
Interest rate swaps and caps designated as a hedge (included in other assets)	88,982		—		88,982		—
Interest rate caps not designated as a hedge (included in other assets)	1,040		—		1,040		—
Total assets	$	289,921	$	70,025	$	90,022	$	129,874

Mandatorily redeemable instruments (included in other liabilities)	$	49,684	$	49,684	$	—	$	—
Interest rate swaps designated as a hedge (included in other liabilities)	1,023		—		1,023		—
Interest rate caps not designated as a hedge (included in other liabilities)	1,040		—		1,040		—
Total liabilities	$	51,747	$	49,684	$	2,063	$	—


(Amounts in thousands)	As of December 31, 2023
	Total		Level 1		Level 2		Level 3

Deferred compensation plan assets ($26,363 included in restricted cash and $78,883 in other assets)	$	105,246	$	58,956	$	—	$	46,290
Loans receivable (included in investments in partially owned entities)	32,984		—		—		32,984
Interest rate swaps and caps designated as a hedge (included in other assets)	138,772		—		138,772		—
Interest rate caps not designated as a hedge (included in other assets)	4,154		—		4,154		—
Total assets	$	281,156	$	58,956	$	142,926	$	79,274

Mandatorily redeemable instruments (included in other liabilities)	$	49,386	$	49,386	$	—	$	—
Interest rate swaps designated as a hedge (included in other liabilities)	7,239		—		7,239		—
Interest rate caps not designated as a hedge (included in other liabilities)	4,092		—		4,092		—
Total liabilities	$	60,717	$	49,386	$	11,331	$	—

Schedule of Changes in Fair Value of Deferred Compensation Plan Assets

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


(Amounts in thousands)	For the Year Ended December 31,
	2024		2023
Beginning balance	$	46,290	$	38,916
Purchases	1,718		7,855
Sales	(9,051)		(5,080)
Realized and unrealized (losses) gains	(2,282)		982
Other, net	7,880		3,617
Ending balance	$	44,555	$	46,290

Schedule of Changes In Fair Value of Loans Receivable

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


(Amounts in thousands)	For the Year Ended December 31,
	2024		2023
Beginning balance	$	32,984	$	54,397
Investment in loan receivable	50,000		—
Credit losses	—		(26,155)		(1)
Interest accrual	2,906		5,153
Paydowns	(571)		(411)
Ending balance(2)	$	85,319	$	32,984

____________________

(1)Includes a $21,114 impairment loss on advances made for our interest in a joint venture, resulting from a decline in the value of the underlying building. The loss was included in “income (loss) from partially owned entities” on our consolidated statements of income for the year ended December 31, 2023.

(2)The fair value for $32,984 of the balance was determined by using a discounted cash flow model and Level 3 inputs, which include a terminal capitalization rate of 5.5% and a discount rate of 8.0% as of December 31, 2024 and 2023. The terminal capitalization rate and discount rate disclosed reflect both the range and the weighted average. The fair value for the remaining balance at December 31, 2024 was based on the recent transaction price.

Schedule of Derivative Assets at Fair Value

The following table summarizes our consolidated hedging instruments, all of which hedge variable rate debt, as of December 31, 2024 and 2023, respectively.


(Amounts in thousands)	As of December 31, 2024									As of December 31, 2023
	Notional Amount			All-In Swapped Rate	Swap/Cap Expiration Date	Fair Value Asset		Fair Value Liability		Fair Value Asset			Fair Value Liability
Interest rate swaps:
555 California Street mortgage loan	$	840,000	(1)	6.03%	05/26	$	765	$	—	$	15,494	(2)	$	6,091
770 Broadway mortgage loan	700,000			4.98%	07/27	21,332		—		20,306			—
PENN 11 mortgage loan	500,000		(3)	6.28%	10/25	17		282		4,702			1,148		(4)
Unsecured revolving credit facility	575,000			3.88%	08/27	18,510		—		17,064			—
Unsecured term loan	700,000			4.53%	(5)	10,128		—		11,089			—
100 West 33rd Street mortgage loan	480,000			5.26%	06/27	6,808		—		3,550			—
888 Seventh Avenue mortgage loan	200,000		(6)	4.76%	09/27	5,249		—		4,340			—
4 Union Square South mortgage loan	96,400		(7)	3.74%	01/25	12		—		2,327			—
435 Seventh Avenue mortgage loan(8)	75,000			6.96%	04/26	—		741		—			—
Interest rate caps:
1290 Avenue of the Americas mortgage loan	950,000			(9)	11/25	25,673		—		53,784			—
One Park Avenue mortgage loan	525,000			(10)	03/25	464		—		5,297			—
Various mortgage loans						24		—		819			—
						$	88,982	$	1,023	$	138,772		$	7,239

________________________________________

(1)Represents our 70.0% share of the $1.2 billion mortgage loan.

(2)Represents the fair value of the interest rate swap arrangement that expired in May 2024.

(3)In January 2024, we entered into an interest rate swap arrangement for $250,000 of the $500,000 PENN 11 mortgage loan. Together with the existing swap arrangement the loan will bear interest at an all-in swapped rate of 6.28% through October 2025.

(4)Represents the fair value of the forward swap arrangement which became effective March 2024.

(5)Represents the aggregate fair value of various interest rate swap arrangements to hedge interest payments on our unsecured term loan, which matures in December 2027. The impact of these interest rate swap arrangements is detailed below:


	Swapped Balance		All-In Swapped Rate	Unswapped Balance (bears interest at S+130)

Through 07/25	$	700,000	4.53%	$	100,000
07/25 through 10/26	550,000		4.36%	250,000
10/26 through 08/27	50,000		4.04%	750,000

(6)The remaining $58,057 mortgage loan balance bears interest at a floating rate of SOFR plus 1.80% (6.35% as of December 31, 2024).

(7)The remaining $23,600 mortgage loan balance bears interest at a floating rate of SOFR plus 1.50% (6.05% as of December 31, 2024).

(8)Entered into in May 2024.

(9)SOFR strike rate of 1.00%. In connection with the arrangement, we made a $63,100 up-front payment in 2023, of which $18,930 was attributable to noncontrolling interests.

(10)SOFR cap strike rate of 3.89%.

Schedule of Derivative Liabilities at Fair Value

The following table summarizes our consolidated hedging instruments, all of which hedge variable rate debt, as of December 31, 2024 and 2023, respectively.


(Amounts in thousands)	As of December 31, 2024									As of December 31, 2023
	Notional Amount			All-In Swapped Rate	Swap/Cap Expiration Date	Fair Value Asset		Fair Value Liability		Fair Value Asset			Fair Value Liability
Interest rate swaps:
555 California Street mortgage loan	$	840,000	(1)	6.03%	05/26	$	765	$	—	$	15,494	(2)	$	6,091
770 Broadway mortgage loan	700,000			4.98%	07/27	21,332		—		20,306			—
PENN 11 mortgage loan	500,000		(3)	6.28%	10/25	17		282		4,702			1,148		(4)
Unsecured revolving credit facility	575,000			3.88%	08/27	18,510		—		17,064			—
Unsecured term loan	700,000			4.53%	(5)	10,128		—		11,089			—
100 West 33rd Street mortgage loan	480,000			5.26%	06/27	6,808		—		3,550			—
888 Seventh Avenue mortgage loan	200,000		(6)	4.76%	09/27	5,249		—		4,340			—
4 Union Square South mortgage loan	96,400		(7)	3.74%	01/25	12		—		2,327			—
435 Seventh Avenue mortgage loan(8)	75,000			6.96%	04/26	—		741		—			—
Interest rate caps:
1290 Avenue of the Americas mortgage loan	950,000			(9)	11/25	25,673		—		53,784			—
One Park Avenue mortgage loan	525,000			(10)	03/25	464		—		5,297			—
Various mortgage loans						24		—		819			—
						$	88,982	$	1,023	$	138,772		$	7,239

________________________________________

(1)Represents our 70.0% share of the $1.2 billion mortgage loan.

(2)Represents the fair value of the interest rate swap arrangement that expired in May 2024.

(4)Represents the fair value of the forward swap arrangement which became effective March 2024.


	Swapped Balance		All-In Swapped Rate	Unswapped Balance (bears interest at S+130)

Through 07/25	$	700,000	4.53%	$	100,000
07/25 through 10/26	550,000		4.36%	250,000
10/26 through 08/27	50,000		4.04%	750,000

(6)The remaining $58,057 mortgage loan balance bears interest at a floating rate of SOFR plus 1.80% (6.35% as of December 31, 2024).

(7)The remaining $23,600 mortgage loan balance bears interest at a floating rate of SOFR plus 1.50% (6.05% as of December 31, 2024).

(8)Entered into in May 2024.

(9)SOFR strike rate of 1.00%. In connection with the arrangement, we made a $63,100 up-front payment in 2023, of which $18,930 was attributable to noncontrolling interests.

(10)SOFR cap strike rate of 3.89%.

Schedule of Impairment Losses

The following table sets forth the details of our impairment losses.



(Amounts in thousands)	As of and For the Year December 31, 2023
		Aggregate Fair Value		Impairment Losses
Consolidated real estate assets		$	55,097	$	45,007	(1)
Investments in partially owned entities		21,473		29,344		(2)
		$	76,570	$	74,351

________________________________________

(1)Includes $22,176 attributable to noncontrolling interests.

(2)Excludes a $21,114 impairment loss on advances made for our interest in a joint venture.

Schedule of Fair Value Inputs Quantitative Information

The fair value of these assets was measured using discounted cash flow analyses and Level 3 inputs. Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate assets.



	As of December 31, 2023
Unobservable Quantitative Input		Range	Weighted Average
Discount rates		7.50% - 8.00%	7.99%
Terminal capitalization rates		5.50%	5.50%

Schedule of Carrying Amounts and Fair Values of Financial Instruments

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


(Amounts in thousands)	As of December 31, 2024					As of December 31, 2023
	Carrying Amount			Fair Value		Carrying Amount			Fair Value
Cash equivalents	$	639,366		$	639,000	$	825,720		$	826,000
Debt:
Mortgages payable	$	5,707,176		$	5,486,000	$	5,729,615		$	5,569,000
Senior unsecured notes	1,200,000			1,129,000		1,200,000			1,069,000
Unsecured term loan	800,000			800,000		800,000			800,000
Unsecured revolving credit facilities	575,000			575,000		575,000			575,000
Total	$	8,282,176	(1)	$	7,990,000	$	8,304,615	(1)	$	8,013,000

________________________________________

(1)Excludes $39,300 and $53,163 of deferred financing costs, net and other as of December 31, 2024 and 2023, respectively.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details