Investments in Unconsolidated Joint Ventures

Summarized Financial Information

As of December 31, 2017, we had equity interests in nine unconsolidated joint ventures that primarily own and operate rental properties and hold land for development.

Combined summarized financial information for the unconsolidated joint ventures at December 31, 2017 and 2016, and for the years ended December 31, 2017, 2016 and 2015, are as follows (in thousands):



	2017		2016		2015
Rental revenue	$	71,424	$	122,019	$	160,543
Gain on sale of properties	$	4,986	$	100,806	$	23,696
Net income	$	20,673	$	122,727	$	60,772

Equity in earnings (loss) of unconsolidated joint ventures (1)	$	63,310	$	47,403	$	(3,304	)

Land, buildings and tenant improvements, net	$	383,581	$	529,926
Construction in progress	65,715		31,838
Undeveloped land	30,170		90,560
Other assets	76,695		91,045
	$	556,161	$	743,369

Indebtedness	$	235,497	$	172,811
Other liabilities	39,497		32,633
	274,994		205,444
Owners' equity	281,167		537,925
	$	556,161	$	743,369

Investments in and advances to unconsolidated joint ventures (2)	$	126,487	$	197,807

(1) During 2017, we sold our interests in certain joint ventures, including the interests in the joint ventures sold in connection with the Medical Office Portfolio Disposition (see Note 3) for which we recognized a gain of $47.5 million. The gains recognized in connection with our sales of these ownership interests, which are classified within equity in earnings of unconsolidated joint ventures on the Consolidated Statements of Operations and Comprehensive Income, are not reflected in the summarized financial information for the underlying unconsolidated joint ventures.

(2) Differences between the net investment in our unconsolidated joint ventures and our underlying equity in the net assets of the ventures are primarily a result of previous impairments related to our investment in the unconsolidated joint ventures, basis differences associated with the sales of properties to joint ventures in which we retained an ownership interest and loans we have made to the joint ventures. These adjustments have resulted in an aggregate difference reducing our investments in unconsolidated joint ventures by $6.4 million and $22.2 million as of December 31, 2017 and 2016, respectively. Differences between historical cost basis and the basis reflected at the joint venture level (other than loans and impairments) are typically depreciated over the life of the related asset.

The scheduled principal payments of long term debt for the unconsolidated joint ventures, at our ratable ownership percentage, for each of the next five years and thereafter as of December 31, 2017 are as follows (in thousands):



Year	Future Repayments
2018	$	136
2019	4,118
2020	9,533
2021	57,629
2022	122
Thereafter	36,993
	$	108,531

Other Than Temporary Impairment of Investments in Unconsolidated Joint Ventures

During 2015, we recognized $30.0 million of charges through equity in earnings related to investments in three of our unconsolidated joint ventures that we determined had experienced declines in fair value that were other than temporary.

The most significant of these impairment charges pertain to our investment in the Linden joint venture, whose sole asset is undeveloped retail land. The Linden joint venture has not been able to proceed with development of its land as the result of a series of zoning and use-related legal challenges. During the three months ended December 31, 2015, we changed our strategy such that we now intend to monetize our investment in the joint venture rather than holding for development and continuing to attempt to resolve the legal challenges. As the result of this change in strategy, we determined that an other-than-temporary decline in the value of our investment in the joint venture had taken place. During the three months ended December 31, 2015, we recognized a $19.5 million impairment charge to write our investment in the Linden joint venture to its fair value. The fair value of our investment in the joint venture was primarily based on offers received for the site. The joint venture had no outstanding debt as of December 31, 2015.

We believe that all of the fair value estimates used in recording the above-mentioned charges were based on Level 3 inputs, as previously defined.