As of September 30, 2015, we own 32.5% of Toys. We have not guaranteed any of Toys' obligations and are not committed to provide any support to Toys. Pursuant to ASC 323-10-35-20, we discontinued applying the equity method for our Toys' investment when the carrying amount was reduced to zero in the third quarter of 2014. We will resume application of the equity method if, during the period the equity method has been suspended, our share of unrecognized net income exceeds our share of unrecognized net losses.

In the first quarter of 2014, we recognized our share of Toys' fourth quarter net income of $75,196,000 and a corresponding non-cash impairment loss of the same amount.

Below is a summary of Toys' latest available financial information on a purchase accounting basis:

(Amounts in thousands)						Balance as of
						August 1, 2015		November 1, 2014
Balance Sheet:
	Assets					$	9,732,000	$	11,267,000
	Liabilities						9,056,000		10,377,000
	Noncontrolling interests						85,000		82,000
	Toys “R” Us, Inc. equity⁽¹⁾						591,000		808,000


(Amounts in thousands)		For the Three Months Ended				For the Nine Months Ended
		August 1, 2015		August 2, 2014		August 1, 2015		August 2, 2014
Income Statement:
	Total revenues	$	2,293,000	$	2,440,000	$	9,601,000	$	10,186,000
	Net loss attributable to Toys		(108,700)		(133,000)		(44,700)		(244,000)


(1)	At September 30, 2015, the carrying amount of our investment in Toys is less than our share of Toys' equity by approximately $191,859. This basis difference results primarily from non-cash impairment losses aggregating $355,953 that we have recognized through September 30, 2015. We have allocated the basis difference primarily to Toys' real estate.

As of September 30, 2015, we own 1,654,068 Alexander's common shares, or approximately 32.4% of Alexander's common equity. We manage, lease and develop Alexander's properties pursuant to agreements which expire in March of each year and are automatically renewable.

As of September 30, 2015, the market value (“fair value” pursuant to ASC 820, Fair Value Measurements and Disclosures (“ASC 820”)) of our investment in Alexander's, based on Alexander's September 30, 2015 closing share price of $374.00, was $618,621,000, or $487,226,000 in excess of the carrying amount on our consolidated balance sheet. As of September 30, 2015, the carrying amount of our investment in Alexander's exceeds our share of the equity in the net assets of Alexander's by approximately $40,527,000. The majority of this basis difference resulted from the excess of our purchase price for the Alexander's common stock acquired over the book value of Alexander's net assets. Substantially all of this basis difference was allocated, based on our estimates of the fair values of Alexander's assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in Alexander's net income. The basis difference related to the land will be recognized upon disposition of our investment.

(Amounts in thousands)						Balance as of
						September 30, 2015		December 31, 2014
Balance Sheet:
	Assets					$	1,457,000	$	1,423,000
	Liabilities						1,112,000		1,075,000
	Stockholders' equity						345,000		348,000


(Amounts in thousands)		For the Three Months Ended September 30,				For the Nine Months Ended September 30,
		2015		2014		2015		2014
Income Statement:
	Total revenues	$	52,000	$	50,000	$	155,000	$	149,000
	Net income attributable to Alexander’s		18,000		18,000		53,000		50,000

As part of our spin-off of substantially all of our retail segment to UE on January 15, 2015 (see Note 1 – Organization), we retained 5,717,184 UE operating partnership units, representing a 5.4% ownership interest in UE. We account for our investment in UE under the equity method and record our share of UE's net income or loss on a one-quarter lag basis. We are providing transition services to UE for an initial period of up to two years, including information technology, human resources, tax and financial reporting. UE is providing us with leasing and property management services for (i) certain small retail properties that we plan to sell, and (ii) our affiliate, Alexander's, Rego Park retail assets. As of September 30, 2015, the fair value of our investment in UE, based on UE's September 30, 2015 closing share price of $21.59, was $123,434,000, or $98,033,000 in excess of the carrying amount on our consolidated balance sheet.

On March 31, 2015, we transferred the redeveloped Springfield Town Center, a 1,350,000 square foot mall located in Springfield, Fairfax County, Virginia, to PREIT Associates, L.P., which is the operating partnership of PREIT, in exchange for $485,313,000; comprised of $340,000,000 of cash and 6,250,000 PREIT operating partnership units (valued at $145,313,000 or $23.25 per PREIT unit) (See Note 8 – Dispositions). $19,000,000 of tenant improvements and allowances was credited to PREIT as a closing adjustment. As a result of this transaction, we own an 8.1% interest in PREIT. We account for our investment in PREIT under the equity method and record our share of PREIT's net income or loss on a one-quarter lag basis. As of September 30, 2015, the fair value of our investment in PREIT, based on PREIT's September 30, 2015 closing share price of $19.83, was $123,938,000, or $14,327,000 lower than the carrying amount on our consolidated balance sheet. As of September 30, 2015, the carrying amount of our investment in PREIT exceeds our share of the equity in the net assets of PREIT by approximately $65,681,000. The majority of this basis difference resulted from the excess of the fair value of the PREIT operating units received over our share of the book value of PREIT's net assets. Substantially all of this basis difference was allocated, based on our estimates of the fair values of PREIT's assets and liabilities, to real estate (land and buildings). We are amortizing the basis difference related to the buildings into earnings as additional depreciation expense over their estimated useful lives. This depreciation is not material to our share of equity in PREIT's net loss. The basis difference related to the land will be recognized upon disposition of our investment.

On June 24, 2015, we entered into a joint venture, in which we own a 55% interest, to develop a 173,000 square foot Class-A office building, located along the western edge of the High Line at 512 West 22nd Street. The development cost of this project is approximately $235,000,000. The development is expected to commence during the fourth quarter of 2015 and be completed in 2017. We account for our investment in the joint venture under the equity method.

Below are schedules summarizing our investments in, and (loss) income from, partially owned entities.

(Amounts in thousands)		Percentage
		Ownership at		Balance as of
		September 30, 2015		September 30, 2015		December 31, 2014
Investments:
	Partially owned office buildings⁽¹⁾		Various	$	857,282	$	760,749
	PREIT Associates		8.1%		138,265		-
	Alexander’s		32.4%		131,395		131,616
	India real estate ventures		4.1%-36.5%		48,114		76,752
	UE		5.4%		25,401		-
	Toys		32.5%		-		-
	Other investments⁽²⁾		Various		259,721		271,372
				$	1,460,178	$	1,240,489


(1)	Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 666 Fifth Avenue (Office), 330 Madison Avenue, 512 West 22nd Street and others.
(2)	Includes interests in Independence Plaza, 85 Tenth Avenue, Fashion Center Mall, 50-70 West 93rd Street and others.

(Amounts in thousands)			Percentage		For the Three Months Ended				For the Nine Months Ended
			Ownership at		September 30,				September 30,
			September 30, 2015		2015		2014		2015			2014
Our Share of Net (Loss) Income:
	Alexander's:
		Equity in net income		32.4%	$	5,716	$	5,552	$	16,757		$	15,583
		Management, leasing and development fees				1,828		1,640		5,801			4,888
						7,544		7,192		22,558			20,471

	Partially owned office buildings⁽¹⁾			Various		(2,039)		18		(14,573)			(1,387)

	Toys:
		Equity in net loss		32.5%		-		(20,357)		-			(4,691)
		Non-cash impairment loss				-		-		-			(75,196)
		Management fees				46		1,939		2,000			5,725
						46		(18,418)		2,000			(74,162)

	India real estate ventures			4.1%-36.5%		(1,704)		(262)		(18,380)	⁽²⁾		(2,440)

	Other investments⁽³⁾			Various		(4,172)		(14,564)		(314)			(21,158)

					$	(325)	$	(26,034)	$	(8,709)		$	(78,676)


(1)	Includes interests in 280 Park Avenue, 650 Madison Avenue, One Park Avenue, 666 Fifth Avenue (Office), 330 Madison Avenue, 512 West 22nd Street and others.
(2)	Includes $14,806 for our share of non-cash impairment losses.
(3)	Includes interests in UE, PREIT Associates, Independence Plaza, 85 Tenth Avenue, Fashion Center Mall, 50-70 West 93rd Street and others. In the third quarter of 2014, we recognized a $10,263 non-cash charge, comprised of a $5,959 impairment loss and a $4,304 loan loss reserve, on our equity and debt investments in Suffolk Downs.