XML 44 R31.htm IDEA: XBRL DOCUMENT v3.20.2
Real Estate and Other Affiliates (Tables)
 9 Months Ended
Sep. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Summary of investments in real estate and other affiliates
Equity investments in real estate and other affiliates are reported 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,
thousands except percentages
2020
2019
 
2020
2019
 
2020
 
2019
 
2020
 
2019
Equity Method Investments
 
 
 
 
 
 
 
 
 
 
 

 
 

Operating Assets:
 
 
 
 
 
 
 
 
 
 
 

 
 

110 North Wacker (a)
—
%
—
%
 
$
273,608

n/a

 
$
267,518

 
n/a

 
$
267,518

 
n/a

The Metropolitan Downtown Columbia (b)
50
%
50
%
 
—

—

 
215

 
172

 
637

 
478

Stewart Title of Montgomery County, TX
50
%
50
%
 
4,052

4,175

 
375

 
306

 
878

 
579

Woodlands Sarofim #1
20
%
20
%
 
3,091

2,985

 
32

 
38

 
96

 
89

m.flats/TEN.M
50
%
50
%
 
1,820

2,431

 
340

 
(75
)
 
496

 
(1,576
)
Master Planned Communities:
 
 
 
 
 
 
 
 
 
 
 
 
The Summit (c)
—
%
—
%
 
85,327

84,455

 
(1,563
)
 
4,523

 
4,403

 
18,859

Seaport District:
 
 
 
 
 
 
 
 
 
 
 

 
 

Mr. C Seaport
—
%
35
%
 
—

7,650

 
—

 
(545
)
 
(6,900
)
 
(1,628
)
Bar Wayō (Momofuku) (c)
—
%
—
%
 
6,963

7,469

 
(288
)
 
(160
)
 
(2,064
)
 
(160
)
Strategic Developments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Circle T Ranch and Power Center
50
%
50
%
 
10,686

8,207

 
216

 
400

 
891

 
691

HHMK Development
50
%
50
%
 
10

10

 
—

 
—

 
—

 
—

KR Holdings
50
%
50
%
 
372

422

 
(7
)
 
(117
)
 
(44
)
 
(110
)
 
 
 
 
385,929

117,804

 
266,838

 
4,542

 
265,911

 
17,222

Other equity investments (d)
 
 
 
3,953

3,953

 
—

 
—

 
3,724

 
3,625

Investments in real estate and other affiliates
 
 
$
389,882

$
121,757

 
$
266,838

 
$
4,542

 
$
269,635

 
$
20,847

(a)
During the third quarter of 2020, 110 North Wacker was completed and placed in service. This triggered a reconsideration event that resulted in the deconsolidation of 110 North Wacker and the recognition of the retained equity method investment at fair market value. The gain on deconsolidation was recorded in the Strategic Developments segment. The equity method investment was transferred from the Strategic Development segment to the Operating Asset segment. Refer to the discussion below for additional details.
(b)
The Metropolitan Downtown Columbia was in a deficit position of $4.5 million at September 30, 2020, and $4.7 million at December 31, 2019, due to distributions from operating cash flows in excess of basis. These deficit balances are presented in Accounts payable and accrued expenses at September 30, 2020, and December 31, 2019.
(c)
Refer to the discussion below for details on the ownership structure.
(d)
Other equity investments represent equity investments not accounted for under the equity method. The Company elected the measurement alternative as these investments do not have readily determinable fair values. There were no impairments, or upward or downward adjustments to the carrying amounts of these securities either during current year 2020, or cumulatively.

Relevant financial statement information for The Summit is summarized as follows:
 
September 30,
 
December 31,
thousands
2020
 
2019
Total Assets
$
274,835

 
$
221,277

Total Liabilities
187,375

 
136,314

Total Equity
87,460

 
84,963

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
thousands
2020
 
2019
 
2020
 
2019
Revenues (a)
$
37,350

 
$
25,931

 
$
96,022

 
$
84,118

Net income
(1,563
)
 
4,523

 
6,028

 
18,859

Gross Margin
245

 
5,587

 
10,501

 
22,334

(a)
The Summit adopted ASU 2014-09, Revenues from Contracts with Customers (Topic 606) effective in the fourth quarter of 2019, using the modified retrospective transition method. Therefore, for 2020, revenues allocated to each of The Summit’s
performance obligations is recognized over time based on an input measure of progress. The three and nine months ended September 30, 2019 amounts have not been adjusted and are recognized on a percentage of completion basis. The Summit’s adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements.
Changes in redeemable noncontrolling interest The following table presents changes in Redeemable noncontrolling interest:
thousands
Redeemable Noncontrolling Interest
Balance as of December 31, 2019
 
$
—

Reclassification of redeemable noncontrolling interest from permanent equity
 
6,091

Net income (loss) attributable to noncontrolling interest
 
24,270

Balance as of September 30, 2020
 
$
30,361