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Assets and Liabilities Measured at Fair Value on a Recurring Basis (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables show the major categories of assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018, using unadjusted quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); significant unobservable inputs (Level 3); and Practical Expedient (millions):
Description
 
Level 1:
Quoted
Prices in
Active Markets
for Identical
Assets
 
Level 2:
Significant
Other
Observable
Inputs
 
Level 3:
Significant
Unobservable
Inputs
 
Fair Value
Using
Practical
Expedient
 
Total at
December 31,
2019
Real estate properties
 
$
—

 
$
—

 
$
15,835.0

 
$
—

 
$
15,835.0

Real estate joint ventures
 
—

 
—

 
7,204.2

 
—

 
7,204.2

Real estate funds
 
—

 
—

 
—

 
311.8

 
311.8

Marketable securities:
 
 
 
 
 
 
 
 
 
 
Real estate-related
 
825.7

 
—

 
—

 
—

 
825.7

Government agency notes
 
—

 
259.6

 
—

 
—

 
259.6

United States Treasury securities
 
—

 
2,589.1

 
—

 
—

 
2,589.1

Corporate bonds
 
—

 
1,268.3

 
—

 
—

 
1,268.3

Municipal bonds
 
—

 
33.2

 
—

 
—

 
33.2

Loans receivable(1)
 
—

 
—

 
1,572.1

 
—

 
1,572.1

Total Investments at
December 31, 2019
 
$
825.7

 
$
4,150.2

 
$
24,611.3

 
$
311.8

 
$
29,899.0

Loans payable
 
$
—

 
$
—

 
$
(2,365.0
)
 
$
—

 
$
(2,365.0
)
Line of credit
 
$
—

 
$
—

 
$
(250.0
)
 
$
—

 
$
(250.0
)
(1) Amount shown is reflective of loans receivable and loans receivable with related parties.
Description
 
Level 1:
Quoted
Prices in
Active Markets
for Identical
Assets
 
Level 2:
Significant
Other
Observable
Inputs
 
Level 3:
Significant
Unobservable
Inputs
 
Fair Value
Using
Practical
Expedient
 
Total at
December 31,
2018
Real estate properties
 
$
—

 
$
—

 
$
15,531.1

 
$
—

 
$
15,531.1

Real estate joint ventures
 
—

 
—

 
6,356.6

 
—

 
6,356.6

Real estate funds
 
—

 
—

 
—

 
175.9

 
175.9

Marketable securities:
 
 
 
 
 
 
 
 
 
 
Real estate-related
 
1,415.1

 
—

 
—

 
—

 
1,415.1

Government agency notes
 
—

 
2,050.7

 
—

 
—

 
2,050.7

United States Treasury securities
 
—

 
2,038.0

 
—

 
—

 
2,038.0

Loans receivable
 
—

 
—

 
913.0

 
—

 
913.0

Total Investments at
December 31, 2018
 
$
1,415.1

 
$
4,088.7

 
$
22,800.7

 
$
175.9

 
$
28,480.4

Loans payable
 
$
—

 
$
—

 
$
(2,608.0
)
 
$
—

 
$
(2,608.0
)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables show the reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2019 and 2018 (millions):
 
 
Real Estate
Properties
 
Real Estate
Joint
Ventures
 
Loans Receivable(3)
 
Total
Level 3
Investments
 

Loans
Payable
 
Line of Credit
For the year ended December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance January 1, 2019
 
$
15,531.1

 
$
6,356.6

 
$
913.0

 
$
22,800.7

 
$
(2,608.0
)
 
$
—

Total realized and unrealized gains(losses) included in changes in net assets
 
526.3

 
(100.3
)
 
(4.1
)
 
421.9

 
(107.1
)
 
—

Purchases(1)
 
1,534.9

 
953.0

 
764.8

 
3,252.7

 
(228.5
)
 
(250.0
)
Sales
 
(1,757.3
)
 
—

 
—

 
(1,757.3
)
 
—

 
—

Settlements(2)
 
—

 
(5.1
)
 
(101.6
)
 
(106.7
)
 
578.6

 
—

Ending balance December 31, 2019
 
$
15,835.0

 
$
7,204.2

 
$
1,572.1

 
$
24,611.3

 
$
(2,365.0
)
 
$
(250.0
)
 
 
Real Estate
Properties
 
Real Estate
Joint
Ventures
 
Loans Receivable
 
Total
Level 3
Investments
 

Loans
Payable
For the year ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
Beginning balance January 1, 2018
 
$
15,742.7

 
$
5,860.6

 
$
298.8

 
$
21,902.1

 
$
(2,238.3
)
Total realized and unrealized gains included in changes in net assets
 
315.8

 
116.3

 
0.3

 
432.4

 
79.4

Purchases(1)
 
1,151.8

 
941.5

 
939.2

 
3,032.5

 
(817.9
)
Sales
 
(1,679.2
)
 
—

 
(257.3
)
 
(1,936.5
)
 
—

Settlements(2)
 
—

 
(561.8
)
 
(68.0
)
 
(629.8
)
 
368.8

Ending balance December 31, 2018
 
$
15,531.1

 
$
6,356.6

 
$
913.0

 
$
22,800.7

 
$
(2,608.0
)
(1) 
Includes purchases, contributions for joint ventures, capital expenditures, lending for loans receivable and assumption of loans payable.
(2) 
Includes operating income for real estate joint ventures net of distributions, principal payments and payoffs of loans receivable, and principal payments and extinguishment of loans payable.
(3) 
Amount shown is reflective of loans receivable and loans receivable with related parties.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables show the reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2019 and 2018 (millions):
 
 
Real Estate
Properties
 
Real Estate
Joint
Ventures
 
Loans Receivable(3)
 
Total
Level 3
Investments
 

Loans
Payable
 
Line of Credit
For the year ended December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance January 1, 2019
 
$
15,531.1

 
$
6,356.6

 
$
913.0

 
$
22,800.7

 
$
(2,608.0
)
 
$
—

Total realized and unrealized gains(losses) included in changes in net assets
 
526.3

 
(100.3
)
 
(4.1
)
 
421.9

 
(107.1
)
 
—

Purchases(1)
 
1,534.9

 
953.0

 
764.8

 
3,252.7

 
(228.5
)
 
(250.0
)
Sales
 
(1,757.3
)
 
—

 
—

 
(1,757.3
)
 
—

 
—

Settlements(2)
 
—

 
(5.1
)
 
(101.6
)
 
(106.7
)
 
578.6

 
—

Ending balance December 31, 2019
 
$
15,835.0

 
$
7,204.2

 
$
1,572.1

 
$
24,611.3

 
$
(2,365.0
)
 
$
(250.0
)
 
 
Real Estate
Properties
 
Real Estate
Joint
Ventures
 
Loans Receivable
 
Total
Level 3
Investments
 

Loans
Payable
For the year ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
Beginning balance January 1, 2018
 
$
15,742.7

 
$
5,860.6

 
$
298.8

 
$
21,902.1

 
$
(2,238.3
)
Total realized and unrealized gains included in changes in net assets
 
315.8

 
116.3

 
0.3

 
432.4

 
79.4

Purchases(1)
 
1,151.8

 
941.5

 
939.2

 
3,032.5

 
(817.9
)
Sales
 
(1,679.2
)
 
—

 
(257.3
)
 
(1,936.5
)
 
—

Settlements(2)
 
—

 
(561.8
)
 
(68.0
)
 
(629.8
)
 
368.8

Ending balance December 31, 2018
 
$
15,531.1

 
$
6,356.6

 
$
913.0

 
$
22,800.7

 
$
(2,608.0
)
(1) 
Includes purchases, contributions for joint ventures, capital expenditures, lending for loans receivable and assumption of loans payable.
(2) 
Includes operating income for real estate joint ventures net of distributions, principal payments and payoffs of loans receivable, and principal payments and extinguishment of loans payable.
(3) 
Amount shown is reflective of loans receivable and loans receivable with related parties.

Schedule of Unobservable Inputs Related to Level 3 Fair Value Measurements
The following table shows quantitative information about unobservable inputs related to the Level 3 fair value measurements as of December 31, 2019.
 
 
 
 
 
Type
Asset Class
Valuation Technique(s)
Unobservable Inputs
Range (Weighted Average)
 
Real Estate Properties and Joint Ventures
Office
Income Approach—Discounted Cash Flow
Discount Rate
5.5%–8.5% (6.6%)
 
 
 
Terminal Capitalization Rate
4.0%–7.5% (5.5%)
 
 
 
 
Income Approach—Direct Capitalization
Overall Capitalization Rate
3.9%–7.0% (5.0%)
 
 
 
Industrial
Income Approach—Discounted Cash Flow
Discount Rate
5.3% - 9.0% (6.7%)
 
 
 
Terminal Capitalization Rate
4.3% - 8.1% (5.5%)
 
 
 
 
Income Approach—Direct Capitalization
Overall Capitalization Rate
3.9% - 7.4% (4.9%)
 
 
 
Residential
Income Approach—Discounted Cash Flow
Discount Rate
5.3% - 7.8% (6.4%)
 
 
 
Terminal Capitalization Rate
4.3% - 6.8% (5.1%)
 
 
 
 
Income Approach—Direct Capitalization
Overall Capitalization Rate
3.8% - 6.0% (4.6%)
 
 
 
Retail
Income Approach—Discounted Cash Flow
Discount Rate
5.3% - 11.7% (6.6%)
 
 
 
Terminal Capitalization Rate
4.8% - 9.4% (5.4%)
 
 
 
 
Income Approach—Direct Capitalization
Overall Capitalization Rate
3.3% - 11.0% (4.9%)
 
 
 
 
 
 
Hotel
Income Approach—Discounted Cash Flow
Discount Rate
10.0% (10.0%)
 
 
 
Terminal Capitalization Rate
7.8% (7.8%)
 
 
 
 
Income Approach—Direct Capitalization
Overall Capitalization Rate
7.5% (7.5%)
 
 
 
 
 
Loans Payable
Office and Industrial
Discounted Cash Flow
Loan-to-Value Ratio
31.6% - 59.5% (46.3%)
 
 
 
Equivalency Rate
3.1% - 4.3% (3.4%)
 
 
 
 
Net Present Value
Loan-to-Value Ratio
31.6% - 59.5% (46.3%)
 
 
 
Weighted Average Cost of Capital Risk Premium Multiple
1.2 - 1.5 (1.3)
 
 
 
Residential
Discounted Cash Flow
Loan-to-Value Ratio
30.2% - 69.0% (47.8%)
 
 
 
Equivalency Rate
3.0% - 3.6% (3.3%)
 
 
 
 
Net Present Value
Loan-to-Value Ratio
30.2% - 69.0% (47.8%)
 
 
 
Weighted Average Cost of Capital Risk Premium Multiple
1.2 - 1.7 (1.3)
 
 
 
Retail
Discounted Cash Flow
Loan-to-Value Ratio
33.3% - 63.3% (41.1%)
 
 
 
Equivalency Rate
3.3% - 4.0% (3.5%)
 
 
 
 
Net Present Value
Loan-to-Value Ratio
33.3% - 63.3% (41.1%)
 
 
 
Weighted Average Cost of Capital Risk Premium Multiple
1.2 - 1.5 (1.3)
 
Loans Receivable, including those with related parties
Residential, Hotel, Industrial, Office, Retail and Storage
Discounted Cash Flow
Loan-to-Value Ratio
31.7% - 81.5% (72.5%)
 
 
 
Equivalency Rate
3.2% - 8.4% (6.0%)





The following table shows quantitative information about unobservable inputs related to the Level 3 fair value measurements as of December 31, 2018.
 
 
 
 
 
Type
Asset Class
Valuation Technique(s)
Unobservable Inputs
Range (Weighted Average)
 
Real Estate Properties and Joint Ventures
Office
Income Approach—Discounted Cash Flow
Discount Rate
5.5%–8.6% (6.5%)
 
 
 
Terminal Capitalization Rate
4.0%–7.5% (5.4%)
 
 
 
 
Income Approach—Direct Capitalization
Overall Capitalization Rate
4.0%–7.0% (4.8%)
 
 
 
Industrial
Income Approach—Discounted Cash Flow
Discount Rate
5.3%–8.9% (6.8%)
 
 
 
Terminal Capitalization Rate
4.4%–7.3% (5.5%)
 
 
 
 
Income Approach—Direct Capitalization
Overall Capitalization Rate
4.0%–7.0% (4.9%)
 
 
 
Residential
Income Approach—Discounted Cash Flow
Discount Rate
5.5%–7.8% (6.5%)
 
 
 
Terminal Capitalization Rate
3.8%–6.8% (5.0%)
 
 
 
 
Income Approach—Direct Capitalization
Overall Capitalization Rate
3.3%–6.0% (4.5%)
 
 
 
Retail
Income Approach—Discounted Cash Flow
Discount Rate
5.0%–10.7% (6.4%)
 
 
 
Terminal Capitalization Rate
4.3%–9.0% (5.3%)
 
 
 
 
Income Approach—Direct Capitalization
Overall Capitalization Rate
3.3%–8.5% (4.7%)
 
Loans Payable
Office and Industrial
Discounted Cash Flow
Loan-to-Value Ratio
36.4%–67.8% (47.6%)
 
 
 
Equivalency Rate
3.9%–6.2% (4.6%)
 
 
 
 
Net Present Value
Loan-to-Value Ratio
36.4%–67.8% (47.6%)
 
 
 
Weighted Average Cost of Capital Risk Premium Multiple
1.2–1.4 (1.3)
 
 
 
Residential
Discounted Cash Flow
Loan-to-Value Ratio
31.9%–63.6% (48.1%)
 
 
 
Equivalency Rate
3.4%–4.6% (4.1%)
 
 
 
 
Net Present Value
Loan-to-Value Ratio
31.9%–63.6% (48.1%)
 
 
 
Weighted Average Cost of Capital Risk Premium Multiple
1.1–1.4 (1.2)
 
 
 
Retail
Discounted Cash Flow
Loan-to-Value Ratio
31.9%–55.3% (39.3%)
 
 
 
Equivalency Rate
4.3%–5.3% (4.5%)
 
 
 
 
Net Present Value
Loan-to-Value Ratio
31.9%–55.3% (39.3%)
 
 
 
Weighted Average Cost of Capital Risk Premium Multiple
1.1–1.3 (1.2)
 
Loans Receivable
Residential, Industrial, Office, Retail and Storage
Discounted Cash Flow
Loan-to-Value Ratio
70.8%-79.2% (75.6%)
 
 
 
Equivalency Rate
6.0%-8.3% (6.9%)
 
Fair Value of Net Unrealized Gains Included in Changes in Net Assets Attributable to Investments and Mortgage Loans Payable Using Significant Unobservable Inputs
The amount of total net unrealized gains included in changes in net assets attributable to the change in net unrealized gains relating to Level 3 investments and loans payable using significant unobservable inputs still held as of the reporting date is as follows (millions):
 
 
Real Estate
Properties
 
Real Estate
Joint Ventures
 
Loans
Receivable
 
Total
Level 3
Investments
 
Mortgage
Loans
Payable
For the year ended December 31, 2019
 
$
355.2

 
$
(94.7
)
 
$
(4.1
)
 
$
256.4

 
$
(96.8
)
For the year ended December 31, 2018
 
$
282.6

 
$
80.8

 
$
0.3

 
$
363.7

 
$
86.2