Real Estate and Other Affiliates (Tables)

6 Months Ended

Jun. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Summary equity 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
	June 30,		December 31,		June 30,		December 31,		Three Months Ended June 30,				Six Months Ended June 30,
thousands except percentages	2021		2020		2021		2020		2021		2020		2021		2020
Equity Method Investments
Operating Assets:
110 North Wacker (a)	see below		see below		$	237,804	$	261,143	$	(11,307)	—		$	(27,012)	$	—
The Metropolitan Downtown Columbia (b)	50	%	50	%	—		—		165		195		111		422
Stewart Title of Montgomery County, TX	50	%	50	%	4,034		3,924		383		160		634		503
Woodlands Sarofim #1	20	%	20	%	3,173		3,120		22		29		53		64
m.flats/TEN.M	50	%	50	%	834		1,247		318		91		636		156
Master Planned Communities:
The Summit (c)	see below		see below		40,920		96,300		18,641		(2,968)		46,291		5,966
Seaport
Mr. C Seaport (d)	—	%	—	%	—		—		—		(6,249)		—		(6,900)
Ssäm Bar (Momofuku) (e)	see below		see below		7,204		7,101		(336)		(384)		(688)		(1,776)
Strategic Developments:
Circle T Ranch and Power Center (f)	—	%	—	%	—		—		—		589		—		675
HHMK Development	50	%	50	%	10		10		—		—		—		—
KR Holdings	50	%	50	%	230		347		(19)		(15)		(117)		(37)
					294,209		373,192		7,867		(8,552)		19,908		(927)
Other equity investments (g)					3,952		3,953		—		—		3,755		3,724
Investments in real estate and other affiliates					$	298,161	$	377,145	$	7,867	$	(8,552)	$	23,663	$	2,797

(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. Refer to the discussion below for additional details.

(b)The Metropolitan Downtown Columbia was in a deficit position of $5.5 million at June 30, 2021, and $5.0 million at December 31, 2020, due to distributions from operating cash flows in excess of basis. These deficit balances are presented in Accounts payable and accrued expenses at June 30, 2021, and December 31, 2020.

(c)The decrease in investment balance is primarily due to $100.5 million in distributions received during the second quarter of 2021. Refer to discussion below for details on the ownership structure.

(d)During the third quarter of 2020, the Company completed the sale of its 35% equity investment in Mr. C Seaport.

(e)During the first quarter of 2021, Bar Wayō was rebranded as Ssäm Bar. Refer to the discussion below for details on the ownership structure.

(f)During the fourth quarter of 2020, the Company completed the sale of its 50% equity investment in Circle T Ranch and Power Center.

(g)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 or cumulatively.

Changes in redeemable noncontrolling interest

The following table presents changes in Redeemable noncontrolling interest:

thousands	Redeemable Noncontrolling Interest
Balance as of December 31, 2020		$	29,114
Net income (loss) attributable to noncontrolling interest		(2,701)
Share of investee’s other comprehensive income		368
Balance as of June 30, 2021		$	26,781

Relevant financial statement information for The Summit

Relevant financial statement information for significant equity method investments is summarized as follows:

thousands	The Summit (a)(b)		110 North Wacker (c)
Balance Sheet
June 30, 2021
Total assets	$	234,684	$	677,078
Total liabilities	180,597		470,950
Total equity	54,087		206,128
December 31, 2020
Total assets	$	310,855	$	634,274
Total liabilities	209,968		415,452
Total equity	100,887		218,822
Income Statement
Six Months Ended June 30, 2021
Revenues	$	199,505	$	18,042
Gross margin	69,695		—
Operating income (loss)	—		12,390
Net income (loss)	69,372		(16,777)
Six Months Ended June 30, 2020
Revenues	$	58,672	$	—
Gross margin	10,256		—
Operating income	—		—
Net income (loss)	7,591		—

(a)The decrease in Total Equity for The Summit is primarily the result of distributions made in the second quarter of 2021.

(b)The increase in Revenues for The Summit is due to an increase in units closed, with 35 units closing during the six months ended June 30, 2021 compared to 7 units closing during the six months ended June 30, 2020.

(c)The income statement amounts for 110 North Wacker do not include activity for the six months ended June 30, 2020, as it was not accounted for under the equity method during this period.