IMPAIRMENT

3 Months Ended

Mar. 31, 2020

The Company reviews its long-lived assets for potential impairment indicators whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. During the first quarter of 2020, the Company recorded a $48.7 million impairment charge for Outlet Collection at Riverwalk, a 268,556-square-foot urban upscale outlet center located along the

Mississippi River in downtown New Orleans, LA. As of March 31, 2020, the Company recognized the impairment due to decreases in estimated future cash flows as a result of the impact of a shorter than anticipated holding term due to management’s plans to divest the non-core operating asset, decreased demand and reduced interest in brick and mortar retail due to the impact of COVID-19, as well as an increase in the capitalization rate used to evaluate future cash flows due to the impact of COVID-19. The $46.8 million net carrying value of Outlet Collection at Riverwalk, after the impairment, represents the estimated current fair market value at March 31, 2020. There can be no assurance that the Company will ultimately recover this amount through a sale.

The following table summarizes the provision for impairment:



			Provision for Impairment as of March 31,
Impaired Asset	Location	Method of Determining Fair Value	2020		2019
			(In thousands)
Operating Assets:
Outlet Collection at Riverwalk	New Orleans, LA	Discounted cash flow analysis using capitalization rate of 10.0%	$	48,738	$	—

With respect to the Investment in real estate and other affiliates, a series of operating losses of an underlying asset or other factors may indicate that a decrease in value has occurred which is other‑than‑temporary. The investment in each real estate and other affiliate is evaluated periodically and as deemed necessary for recoverability and valuation declines that are other‑than‑temporary.

No impairment charges were recorded for the Investment in real estate and other affiliates during the three months ended March 31, 2020, or during the year ended December 31, 2019.

The Company periodically evaluates its strategic alternatives with respect to each of its properties and may revise its strategy from time to time, including its intent to hold an asset on a long-term basis or the timing of potential asset dispositions. These changes in strategy could result in impairment charges in future periods.