Annual report pursuant to Section 13 and 15(d)

Deferred Charges, Goodwill And Other Assets, Net (Tables)

v3.10.0.1
Deferred Charges, Goodwill And Other Assets, Net (Tables)
 12 Months Ended
Dec. 31, 2018
Deferred Charges, Goodwill And Other Assets [Line Items]  
Schedule Of Deferred Charges, Goodwill And Other Assets



 

 

 

 

 



 

 

 

 

 



 

December 31,

(dollars in thousands)

 

2018

 

 

2017

Deferred leasing costs

$

 173,822 

 

$

 199,515 

Deferred financing costs - unsecured revolving credit facility (a)

 

 5,356 

 

 

 4,945 



 

 179,178 

 

 

 204,460 

Accumulated amortization

 

 (71,326)

 

 

 (98,956)

Deferred charges, net

 

 107,852 

 

 

 105,504 

Notes receivable (b)

 

 47,409 

 

 

 50,167 

In-place lease values, related intangibles and other assets, net (c) (d)

 

 89,860 

 

 

 102,757 

Goodwill (e)

 

 2,945 

 

 

 2,945 

Prepaid expenses and other assets, net (f)

 

 107,168 

 

 

 80,947 



 

 

 

 

 

Total deferred charges, goodwill and other assets, net

$

 355,234 

 

$

 342,320 



(a)Deferred financing costs related to all other debt liabilities (other than for the unsecured revolving credit facility) are netted against those debt liabilities for all periods presented. See Note 2: Significant Accounting Policies – Deferred Financing Costs.

(b)Includes as of December 31, 2018 and 2017, respectively, a mortgage receivable with a balance of $45.2 million and $45.7 million (acquired in August 2017) which bears interest at 5.85 percent and matures in July 2019, with a three-month extension option and an interest-free note receivable with a net present value of $2.2 million and $2.5 million, which matures in April 2023.   The Company believes these balances are fully collectible.

(c)In accordance with ASC 805, Business Combinations, the Company recognizes rental revenue of acquired above and below market lease intangibles over the terms of the respective leases.  The impact of amortizing the acquired above and below-market lease intangibles increased revenue by approximately $5.3 million, $7.9 million and $1.9 million for the years ended December 31, 2018,  2017 and 2016, respectively.  The following table summarizes, as of December 31, 2018, the scheduled amortization of the Company’s acquired above and below-market lease intangibles for each of the five succeeding years (dollars in thousands): 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

Acquired Above-

 

 

Acquired Below-

 

 

 



 

Market Lease

 

 

Market Lease

 

 

Total

Year

 

Intangibles

 

 

Intangibles

 

 

Amortization

2019

$

 (2,559)

 

$

 5,050 

 

$

 2,491 

2020

 

 (2,377)

 

 

 4,305 

 

 

 1,928 

2021

 

 (2,245)

 

 

 4,186 

 

 

 1,941 

2022

 

 (2,132)

 

 

 4,064 

 

 

 1,932 

2023

 

 (1,207)

 

 

 3,279 

 

 

 2,072 



(d)The value of acquired in-place lease intangibles are amortized to expense over the remaining initial terms of the respective leases.  The impact of the amortization of acquired in-place lease values is included in depreciation and amortization expense and amounted to approximately $17.9 million, $32.2 million and $14.3 million for the years ended December 31, 2018,  2017 and 2016, respectively.  The following table summarizes, as of December 31, 2018, the scheduled amortization of the Company’s acquired in-place lease values for each of the five succeeding years (dollars in thousands): 



 

 

 



 

 

 

Year

 

 

 

2019

 

$

 10,494 

2020

 

 

 8,050 

2021

 

 

 6,884 

2022

 

 

 6,059 

2023

 

 

 4,943 





(e)All goodwill is attributable to the Company’s Multi-family Real Estate and Services segment.

(f)Includes as of December 31, 2018 and 2017, $49.2 million and $26.9 million, respectively, of proceeds from property sales held by a qualified intermediary.

Schedule Of Fair Value Of The Derivative Financial Instruments



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

Fair Value

 

 

 

 

Asset Derivatives designated

 

December 31,

 

 

 

 

as hedging instruments

 

 

2018

 

 

2017

 

 

Balance sheet location

 

Interest rate swaps

 

$

 10,175 

 

$

 8,060 

 

 

Deferred charges, goodwill and other assets

 



Schedule Of Cash Flow Hedging, Derivative Financial Instruments On The Income Statement



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives in Cash Flow Hedging Relationships

 

Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)

 

Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)

 

Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

 

Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion, Reclassification for Forecasted Transactions No Longer Probable of Occurring and Amount Excluded from Effectiveness Testing)

Year ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

 

 

 

2018

 

 

2017

 

 

2016

 

 

 

 

2018

 

 

2017

 

 

2016



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

 5,262 

 

$

 2,869 

 

$

 (1,183)

 

Interest expense

 

$

 2,944 

 

$

 (2,381)

 

$

 (3,398)

 

Interest and other investment income (loss)

 

$

 (204)

 

$

 (37)

 

$

 631 



Acquired Above And Below Market Lease Intangibles [Member]  
Deferred Charges, Goodwill And Other Assets [Line Items]  
Summary Of Scheduled Amortization



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

Acquired Above-

 

 

Acquired Below-

 

 

 



 

Market Lease

 

 

Market Lease

 

 

Total

Year

 

Intangibles

 

 

Intangibles

 

 

Amortization

2019

$

 (2,559)

 

$

 5,050 

 

$

 2,491 

2020

 

 (2,377)

 

 

 4,305 

 

 

 1,928 

2021

 

 (2,245)

 

 

 4,186 

 

 

 1,941 

2022

 

 (2,132)

 

 

 4,064 

 

 

 1,932 

2023

 

 (1,207)

 

 

 3,279 

 

 

 2,072 



In-Place Leases [Member]  
Deferred Charges, Goodwill And Other Assets [Line Items]  
Summary Of Scheduled Amortization



 

 

 



 

 

 

Year

 

 

 

2019

 

$

 10,494 

2020

 

 

 8,050 

2021

 

 

 6,884 

2022

 

 

 6,059 

2023

 

 

 4,943 



Mack-Cali Realty LP [Member]  
Deferred Charges, Goodwill And Other Assets [Line Items]  
Schedule Of Deferred Charges, Goodwill And Other Assets



 

 

 

 

 



 

 

 

 

 



 

December 31,

(dollars in thousands)

 

2018

 

 

2017

Deferred leasing costs

$

 173,822 

 

$

 199,515 

Deferred financing costs - unsecured revolving credit facility (a)

 

 5,356 

 

 

 4,945 



 

 179,178 

 

 

 204,460 

Accumulated amortization

 

 (71,326)

 

 

 (98,956)

Deferred charges, net

 

 107,852 

 

 

 105,504 

Notes receivable (b)

 

 47,409 

 

 

 50,167 

In-place lease values, related intangibles and other assets, net (c) (d)

 

 89,860 

 

 

 102,757 

Goodwill (e)

 

 2,945 

 

 

 2,945 

Prepaid expenses and other assets, net (f)

 

 107,168 

 

 

 80,947 



 

 

 

 

 

Total deferred charges, goodwill and other assets, net

$

 355,234 

 

$

 342,320 



(a)Deferred financing costs related to all other debt liabilities (other than for the unsecured revolving credit facility) are netted against those debt liabilities for all periods presented. See Note 2: Significant Accounting Policies – Deferred Financing Costs.

(b)Includes as of December 31, 2018 and 2017, respectively, a mortgage receivable with a balance of $45.2 million and $45.7 million (acquired in August 2017) which bears interest at 5.85 percent and matures in July 2019, with a three-month extension option and an interest-free note receivable with a net present value of $2.2 million and $2.5 million, which matures in April 2023.   The Company believes these balances are fully collectible.

(c)In accordance with ASC 805, Business Combinations, the Company recognizes rental revenue of acquired above and below market lease intangibles over the terms of the respective leases.  The impact of amortizing the acquired above and below-market lease intangibles increased revenue by approximately $5.3 million, $7.9 million and $1.9 million for the years ended December 31, 2018,  2017 and 2016, respectively.  The following table summarizes, as of December 31, 2018, the scheduled amortization of the Company’s acquired above and below-market lease intangibles for each of the five succeeding years (dollars in thousands): 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

Acquired Above-

 

 

Acquired Below-

 

 

 



 

Market Lease

 

 

Market Lease

 

 

Total

Year

 

Intangibles

 

 

Intangibles

 

 

Amortization

2019

$

 (2,559)

 

$

 5,050 

 

$

 2,491 

2020

 

 (2,377)

 

 

 4,305 

 

 

 1,928 

2021

 

 (2,245)

 

 

 4,186 

 

 

 1,941 

2022

 

 (2,132)

 

 

 4,064 

 

 

 1,932 

2023

 

 (1,207)

 

 

 3,279 

 

 

 2,072 



(d)The value of acquired in-place lease intangibles are amortized to expense over the remaining initial terms of the respective leases.  The impact of the amortization of acquired in-place lease values is included in depreciation and amortization expense and amounted to approximately $17.9 million, $32.2 million and $14.3 million for the years ended December 31, 2018,  2017 and 2016, respectively.  The following table summarizes, as of December 31, 2018, the scheduled amortization of the Company’s acquired in-place lease values for each of the five succeeding years (dollars in thousands): 



 

 

 



 

 

 

Year

 

 

 

2019

 

$

 10,494 

2020

 

 

 8,050 

2021

 

 

 6,884 

2022

 

 

 6,059 

2023

 

 

 4,943 





(e)All goodwill is attributable to the Company’s Multi-family Real Estate and Services segment.

(f)Includes as of December 31, 2018 and 2017, $49.2 million and $26.9 million, respectively, of proceeds from property sales held by a qualified intermediary.

Schedule Of Fair Value Of The Derivative Financial Instruments



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

Fair Value

 

 

 

 

Asset Derivatives designated

 

December 31,

 

 

 

 

as hedging instruments

 

 

2018

 

 

2017

 

 

Balance sheet location

 

Interest rate swaps

 

$

 10,175 

 

$

 8,060 

 

 

Deferred charges, goodwill and other assets

 



Schedule Of Cash Flow Hedging, Derivative Financial Instruments On The Income Statement



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives in Cash Flow Hedging Relationships

 

Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)

 

Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)

 

Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

 

Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion, Reclassification for Forecasted Transactions No Longer Probable of Occurring and Amount Excluded from Effectiveness Testing)

Year ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

 

 

 

2018

 

 

2017

 

 

2016

 

 

 

 

2018

 

 

2017

 

 

2016



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

 5,262 

 

$

 2,869 

 

$

 (1,183)

 

Interest expense

 

$

 2,944 

 

$

 (2,381)

 

$

 (3,398)

 

Interest and other investment income (loss)

 

$

 (204)

 

$

 (37)

 

$

 631 



Mack-Cali Realty LP [Member] | Acquired Above And Below Market Lease Intangibles [Member]  
Deferred Charges, Goodwill And Other Assets [Line Items]  
Summary Of Scheduled Amortization



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

Acquired Above-

 

 

Acquired Below-

 

 

 



 

Market Lease

 

 

Market Lease

 

 

Total

Year

 

Intangibles

 

 

Intangibles

 

 

Amortization

2019

$

 (2,559)

 

$

 5,050 

 

$

 2,491 

2020

 

 (2,377)

 

 

 4,305 

 

 

 1,928 

2021

 

 (2,245)

 

 

 4,186 

 

 

 1,941 

2022

 

 (2,132)

 

 

 4,064 

 

 

 1,932 

2023

 

 (1,207)

 

 

 3,279 

 

 

 2,072 



Mack-Cali Realty LP [Member] | In-Place Leases [Member]  
Deferred Charges, Goodwill And Other Assets [Line Items]  
Summary Of Scheduled Amortization



 

 

 



 

 

 

Year

 

 

 

2019

 

$

 10,494 

2020

 

 

 8,050 

2021

 

 

 6,884 

2022

 

 

 6,059 

2023

 

 

 4,943