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REAL ESTATE AND OTHER AFFILIATES (Tables)
 9 Months Ended
Sep. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]  
Summary of Investments in Real Estate and Other Affiliates
The Company's investments in real estate and other affiliates that are reported in accordance with the equity and cost methods are as follows:
 
 
Economic/Legal Ownership
 
Carrying Value
 
Share of Earnings/Dividends
 
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
($ in thousands)
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Equity Method Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Master Planned Communities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Summit (a)
 
—

 
—

 
$
76,899

 
$
45,886

 
$
9,454

 
$
6,480

 
$
34,682

 
$
21,552

Operating Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Las Vegas 51s, LLC (b)
 
100
%
 
100
%
 
—

 
—

 
—

 
—

 
—

 
(152
)
Constellation (b)
 
100
%
 
100
%
 
—

 
—

 
—

 
107

 
—

 
(215
)
The Metropolitan Downtown Columbia (c)
 
50
%
 
50
%
 
—

 
—

 
87

 
82

 
371

 
356

Stewart Title of Montgomery County, TX
 
50
%
 
50
%
 
3,740

 
3,673

 
165

 
113

 
393

 
322

Woodlands Sarofim #1
 
20
%
 
20
%
 
2,732

 
2,696

 
30

 
15

 
66

 
45

m.flats/TEN.M (d)
 
50
%
 
50
%
 
4,168

 
6,521

 
(357
)
 
—

 
(2,661
)
 
—

33 Peck Slip (e)
 
35
%
 
35
%
 
8,734

 
—

 
(452
)
 
—

 
(452
)
 
—

Strategic Developments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Circle T Ranch and Power Center
 
50
%
 
50
%
 
7,574

 
4,455

 
(318
)
 
650

 
3,118

 
650

HHMK Development
 
50
%
 
50
%
 
10

 
10

 
—

 
—

 
—

 
—

KR Holdings
 
50
%
 
50
%
 
7

 
749

 
3

 
20

 
679

 
36

33 Peck Slip (e)
 
35
%
 
35
%
 
—

 
8,651

 
—

 
—

 
(240
)
 
(156
)
 
 
 
 
 
 
103,864

 
72,641

 
8,612

 
7,467

 
35,956

 
22,438

Cost method investments
 
 
 
 
 
3,856

 
3,952

 
—

 
—

 
3,341

 
3,383

Investment in real estate and other affiliates
 
 
 
$
107,720

 
$
76,593

 
$
8,612

 
$
7,467

 
$
39,297

 
$
25,821

 
(a)
Please refer to the schedules below for relevant financial statement information.
(b)
HHC acquired this joint venture partner’s interest in 2017 and has consolidated the assets and liabilities of the entity in its financial results.
(c)
The Metropolitan Downtown Columbia was in a deficit position of $3.2 million and $2.6 million at September 30, 2018 and December 31, 2017, respectively, due to distributions from operating cash flows in excess of basis. This deficit balance is presented in Accounts payable and accrued expenses at September 30, 2018 and December 31, 2017.
(d)
Property was transferred from Strategic Developments to Operating Assets during the three months ended March 31, 2018.
(e)
Property was transferred from Strategic Developments to Operating Assets during the three months ended September 30, 2018
Relevant financial statement information for The Summit is summarized as follows:
 
 
September 30,
 
December 31,
(In millions)
 
2018
 
2017
Total Assets
 
$
216.9

 
$
166.9

Total Liabilities
 
137.8

 
118.9

Total Equity
 
79.1

 
48.0

 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In millions)
 
2018
 
2017
 
2018
 
2017
Revenues (a)
 
$
27.7

 
$
14.2

 
$
88.6

 
$
46.3

Net income
 
9.5

 
6.5

 
34.7

 
21.6

Gross Margin
 
10.8

 
7.7

 
38.3

 
26.4

 
(a)
Revenues related to land sales at the joint venture are recognized on a percentage of completion basis as The Summit following the private company timeline for implementation of the New Revenue Standard of January 1, 2019. The Company has evaluated this impact and concluded that at this time it is not material to HHC's Condensed Consolidated Financial Statements.