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Fair Value Measurements | 6 Months Ended
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Jun. 30, 2026
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements ASC 820 defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities as well as certain U.S. Treasury securities that are highly liquid and are actively traded in secondary markets; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non-financial assets and liabilities. Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Financial assets and liabilities that are measured at fair value on our consolidated balance sheets consist of (i) the assets in our deferred compensation plan (for which there is a corresponding liability on our consolidated balance sheets), (ii) loans receivable (for which we have elected the fair value option under ASC Subtopic 825-10, Financial Instruments ("ASC 825-10")), (iii) interest rate swaps and caps, and (iv) mandatorily redeemable instruments (Series G-1 through G-4 convertible preferred units and Series D-13 cumulative redeemable preferred units). 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 June 30, 2026
| Total |  | Level 1 |  | Level 2 |  | Level 3
Deferred compensation plan assets ($15,967 included in restricted cash and $82,779 in other assets) | $ | 98,746 |  |  | $ | 62,739 |  |  | $ | — |  |  | $ | 36,007 |
Interest rate swaps and caps designated as a hedge (included in other assets) | 33,908 |  |  | — |  |  | 33,908 |  |  | — |
Interest rate caps not designated as a hedge (included in other assets) | 1,202 |  |  | — |  |  | 1,202 |  |  | — |
Total assets | $ | 133,856 |  |  | $ | 62,739 |  |  | $ | 35,110 |  |  | $ | 36,007 |
Mandatorily redeemable instruments (included in other liabilities) | $ | 49,571 |  |  | $ | 49,571 |  |  | $ | — |  |  | $ | — |
Interest rate caps not designated as a hedge (included in other liabilities) | 1,061 |  |  | — |  |  | 1,061 |  |  | — |
Total liabilities | $ | 50,632 |  |  | $ | 49,571 |  |  | $ | 1,061 |  |  | $ | — |
(Amounts in thousands) | As of December 31, 2025
| Total |  | Level 1 |  | Level 2 |  | Level 3
Deferred compensation plan assets ($17,590 included in restricted cash and $96,188 in other assets) | $ | 113,778 |  |  | $ | 73,192 |  |  | $ | — |  |  | $ | 40,586 |
Loans receivable (included in other assets) | 107,166 |  |  | — |  |  | — |  |  | 107,166 |
Interest rate swaps and caps designated as a hedge (included in other assets) | 13,985 |  |  | — |  |  | 13,985 |  |  | — |
Interest rate caps not designated as a hedge (included in other assets) | 42 |  |  | — |  |  | 42 |  |  | — |
Total assets | $ | 234,971 |  |  | $ | 73,192 |  |  | $ | 14,027 |  |  | $ | 147,752 |
Mandatorily redeemable instruments (included in other liabilities) | $ | 49,465 |  |  | $ | 49,465 |  |  | $ | — |  |  | $ | — |
Interest rate swaps designated as a hedge (included in other liabilities) | 3,093 |  |  | — |  |  | 3,093 |  |  | — |
Total liabilities | $ | 52,558 |  |  | $ | 49,465 |  |  | $ | 3,093 |  |  | $ | — |
15. Fair Value Measurements - continued Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued Deferred Compensation Plan Assets Deferred compensation plan assets that are classified as Level 3 consist of investments in limited partnerships and investment funds, which are managed by third parties. We receive quarterly financial reports that provide net asset values on a fair value basis from a third-party administrator, which are compiled from the quarterly reports provided to them from each limited partnership and investment fund. The period of time over which these underlying assets are expected to be liquidated is unknown. The third-party administrator does not adjust these values in determining our share of the net assets and we do not adjust these values when reported in our consolidated financial statements. The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3.
(Amounts in thousands) | For the Three Months Ended June 30, 2026 |  | For the Six Months Ended June 30, 2026
Beginning balance | $ | 40,924 |  |  | $ | 40,586 |
Purchases | 318 |  |  | 4,655 |
Sales | (2,334) |  |  | (7,562) |
Realized and unrealized losses | (3,787) |  |  | (3,263) |
Other, net | 886 |  |  | 1,591 |
Ending balance | $ | 36,007 |  |  | $ | 36,007 |
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 Three Months Ended June 30, 2026 |  |  | For the Six Months Ended June 30, 2026 |
Beginning balance | $ | — |  |  |  | $ | 107,166 |  |
Repayments(1) | — |  |  |  | (107,337) |  | (1)
Interest accrual | — |  |  |  | 171 |  |
Ending balance | $ | — |  |  |  | $ | — |  |
__________________________ (1)In January 2026, we acquired 3 East 54th Street and the outstanding loan balance, including default interest and advances, was credited towards the purchase price. See Note 6 - Acquisitions for further details. 15. Fair Value Measurements - continued Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued Derivatives and Hedging We use derivative instruments principally to reduce our exposure to interest rate increases. We do not enter into or hold derivative instruments for speculative trading purposes. We recognize the fair values of all derivatives in "other assets" or "other liabilities" on our consolidated balance sheets. Changes in the fair value of our cash flow hedges are recognized in other comprehensive income until the hedged item is recognized in earnings. Reported net income and equity may increase or decrease prospectively, depending on future levels of interest rates and other variables affecting the fair values of hedging instruments and hedged items, but will have no effect on cash flows. Cash payments and receipts related to our interest rate hedges are classified as operating activities and included within our disclosure of cash paid for interest on our consolidated statements of cash flows, consistent with the classification of the hedged interest payments. The following table summarizes our consolidated hedging instruments, all of which hedge variable rate debt, as of June 30, 2026 and December 31, 2025.
(Amounts in thousands) |  | As of June 30, 2026 |  |  |  | As of December 31, 2025
|  | Notional Amount |  | All-In Swapped Rate |  | Swap/Cap Expiration Date |  | Fair Value Asset |  |  |  | Fair Value Asset |  | Fair Value Liability
Interest rate swaps: |  |  |  |  |  |  |  |  |  |  |  |  |  |
555 California Street mortgage loan |  | $ | 840,000 |  | (1) | 5.56% | (2) | 05/28 |  | $ | 10,244 |  |  |  |  | $ | — |  |  | $ | 2,119 |
Unsecured term loan |  | 750,000 |  |  | 4.12% |  | (3) |  | 4,256 |  |  |  |  | 3,522 |  |  | — |
Unsecured revolving credit facility |  | 575,000 |  |  | 3.74% |  | 08/27 |  | 8,113 |  |  |  |  | 5,208 |  |  | — |
One Park Avenue mortgage loan |  | 500,000 |  | (4) | 4.52% |  | 07/27 |  | 6,124 |  |  |  |  | 4,189 |  |  | — |
100 West 33rd Street mortgage loan |  | 480,000 |  |  | 5.26% |  | 06/27 |  | 2,485 |  |  |  |  | — |  |  | 736 |
1290 Avenue of the Americas mortgage loan |  | 200,000 |  | (5) | 4.58% | (6) | 09/27 |  | 2,289 |  |  |  |  | 1,047 |  |  | — |
435 Seventh Avenue mortgage loan(7) |  |  |  |  |  |  |  | — |  |  |  |  | — |  |  | 238 |
Interest rate caps: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Various mortgage loans |  |  |  |  |  |  |  | 397 |  |  |  |  | 19 |  |  | — |
|  |  |  |  |  |  |  | $ | 33,908 |  |  |  |  | $ | 13,985 |  |  | $ | 3,093 |
______________________ (1)Represents our 70.0% share of the $1.2 billion mortgage loan. (2)The variable rate spread will increase by 25 basis points in May 2027. (3)Represents the aggregate fair value of various interest rate swap arrangements to hedge interest payments on our unsecured term loan, which matures in February 2031. The impact of these interest rate swap arrangements is detailed below:
|  | Swapped Balance |  | All-In Swapped Rate |  | Unswapped Balance (bears interest at S+115)
Through 10/26 |  | $ | 750,000 |  |  | 4.12% |  | $ | 100,000 |
10/26 through 07/27 |  | 250,000 |  |  | 3.89% |  | 600,000 |
07/27 through 08/27 |  | 50,000 |  |  | 3.89% |  | 800,000 |
(4)The remaining $25,000 mortgage loan balance bears interest at a floating rate of SOFR plus 1.78% (5.41% as of June 30, 2026) and has a 5.20% SOFR strike rate cap in place until February 2028. (5)The remaining $750,000 mortgage loan balance bears interest at a floating rate of SOFR plus 1.62% (5.25% as of June 30, 2026) and has a 4.00% SOFR strike rate cap in place until November 2026. (6)The variable rate spread will increase by 25 basis points in November 2026. (7)On April 5, 2026, the $75,000 notional interest rate swap expired. 15. Fair Value Measurements - continued Fair Value Measurements on a Nonrecurring Basis There were no assets measured at fair value on a nonrecurring basis on our consolidated balance sheets as of June 30, 2026 and December 31, 2025. Financial Assets and Liabilities not Measured at Fair Value Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents (primarily money market funds, which invest in obligations of the United States government) and our secured and unsecured debt. The fair values of these instruments are estimated using discounted cash flow analyses provided by a third-party specialist. For floating rate debt, we use forward rates derived from observable market yield curves to project the expected cash flows we would be required to make under the instrument. The fair value of cash equivalents and borrowings under our unsecured revolving credit facilities and unsecured term loan are classified as Level 1. The fair value of our secured debt and unsecured debt are classified as Level 2. The table below summarizes the carrying amounts and fair value of these financial instruments.
(Amounts in thousands) | As of June 30, 2026 |  | As of December 31, 2025
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Cash equivalents | $ | 504,815 |  |  | $ | 505,000 |  |  | $ | 508,812 |  |  | $ | 509,000 |
Debt: |  |  |  |  |  |  |
Mortgages payable | $ | 4,869,543 |  |  | $ | 4,671,000 |  |  | $ | 4,944,037 |  |  | $ | 4,754,000 |
Senior unsecured notes | 850,000 |  |  | 824,000 |  |  | 750,000 |  |  | 714,000 |
Unsecured term loan | 850,000 |  |  | 850,000 |  |  | 800,000 |  |  | 800,000 |
Unsecured revolving credit facilities | 918,000 |  |  | 918,000 |  |  | 720,420 |  |  | 720,000 |
Total | $ | 7,487,543 |  | (1) | $ | 7,263,000 |  |  | $ | 7,214,457 |  | (1) | $ | 6,988,000 |
______________________ (1)Excludes $42,843 and $28,829 of deferred financing costs, net and other as of June 30, 2026 and December 31, 2025, respectively.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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