XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.23.1

Fair Value Measurements | 3 Months Ended
--- | ---
Mar. 31, 2023
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurement (“ASC 820”) defines fair value and establishes a framework for measuring fair value. 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. Financial Assets and Liabilities Measured at Fair Value Financial assets measured at fair value on our consolidated balance sheet as of March 31, 2023 consist of U.S. Treasury bills (classified as available-for-sale) and interest rate derivatives which are presented in the table below based on their level in the fair value hierarchy. There were no financial liabilities measured at fair value as of March 31, 2023.
|  | As of March 31, 2023
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
(Amounts in thousands) |  |  |  |  |  |  |  |
Investments in U.S. Treasury bills(1) |  | $ | 99,780 |  |  | $ | 99,780 |  |  | $ | — |  |  | $ | — |
Interest rate derivatives (included in other assets) |  | 24,657 |  |  | — |  |  | 24,657 |  |  | — |
|  | $ | 124,437 |  |  | $ | 99,780 |  |  | $ | 24,657 |  |  | $ | — |
(1)As of March 31, 2023, our investments in U.S. Treasury bills have an aggregate accreted value of $99,881 prior to being marked to fair value and have remaining maturities of less than one year. During the three months ended March 31, 2023, we realized proceeds of $170,000 from maturing U.S. Treasury bills. 8.Fair Value Measurements - continued Financial assets measured at fair value on our consolidated balance sheet as of December 31, 2022 consist of U.S. Treasury bills (classified as available for-sale) and interest rate derivatives which are presented in the table below based on their level in the fair value hierarchy. There were no financial liabilities measured at fair value as of December 31, 2022.
|  |  |  | As of December 31, 2022
(Amounts in thousands) |  | Total |  | Level 1 |  | Level 2 |  | Level 3
|  | Investments in U.S. Treasury bills(1) |  | $ | 266,963 |  |  | $ | 266,963 |  |  | $ | — |  |  | $ | — |
|  | Interest rate derivatives (included in other assets) |  | 29,351 |  |  | — |  |  | 29,351 |  |  | — |
|  |  |  | $ | 296,314 |  |  | $ | 266,963 |  |  | $ | 29,351 |  |  | $ | — |
(1)During the year ended December 31, 2022, we purchased $364,238 in U.S. Treasury bills with an aggregate par value of $370,000 and realized proceeds of $100,000 from maturing U.S. Treasury bills. As of December 31, 2022 our investments in U.S. Treasury bills had an aggregate accreted value of $267,809 prior to being marked to fair value and had remaining maturities of less than one year. Interest Rate Derivatives We recognize the fair value of all interest rate derivatives in “other assets” or “other liabilities” on our consolidated balance sheets and since all of our interest rate derivatives have been designated as cash flow hedges, changes in the fair value are recognized in other comprehensive income. The table below summarizes our interest rate derivatives, all of which hedge the interest rate risk attributable to the variable rate debt noted as of March 31, 2023 and December 31, 2022, respectively.
|  |  |  | Fair Value as of |  | As of March 31, 2023
(Amounts in thousands) |  | March 31, 2023 |  | December 31, 2022 |  | Notional Amount |  | Swapped Rate |  | Expiration Date
Interest rate swap related to: |  |  |  |  |  |  |  |  |  |
|  | 731 Lexington Avenue mortgage loan, retail condominium |  | $ | 22,453 |  |  | $ | 26,718 |  |  | $ | 300,000 |  |  | 1.76% |  | 05/25
Interest rate caps related to: |  |  |  |  |  |  |  |  |  |
|  | Rego Park II shopping center mortgage loan |  | 2,196 |  |  | 2,622 |  |  | 202,544 |  |  | (1) |  | 11/24
|  | 731 Lexington Avenue mortgage loan, office condominium |  | 8 |  |  | 11 |  |  | 500,000 |  |  | (2) |  | 06/23
Included in other assets |  | $ | 24,657 |  |  | $ | 29,351 |  |  |  |  |  |  |
(1)SOFR cap strike rate of 4.15% (2)LIBOR cap strike rate of 6.00% 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 and mortgages payable. Cash equivalents are carried at cost, which approximates fair value due to their short-term maturities and are classified as Level 1. The fair value of our mortgages payable is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist, and is classified as Level 2. The table below summarizes the carrying amount and fair value of these financial instruments as of March 31, 2023 and December 31, 2022.
|  | As of March 31, 2023 |  | As of December 31, 2022
(Amounts in thousands) |  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Assets: |  |  |  |  |  |  |  |
Cash equivalents |  | $ | 208,596 |  |  | $ | 208,596 |  |  | $ | 47,852 |  |  | $ | 47,852 |
Liabilities: |  |  |  |  |  |  |  |
Mortgages payable (excluding deferred debt issuance costs, net) |  | $ | 1,096,544 |  |  | $ | 1,071,540 |  |  | $ | 1,096,544 |  |  | $ | 1,061,221 |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration