Real Estate Partnerships

3 Months Ended

Mar. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

REAL ESTATE PARTNERSHIPS

REAL ESTATE PARTNERSHIPS

We have a joint venture arrangement (the “Partnership”) with affiliates of a discretionary fund created and advised by ING Clarion Partners (“Clarion”). We own 30% of the equity in the Partnership and Clarion owns 70%. We hold a general partnership interest, however, Clarion also holds a general partnership interest and has substantive participating rights. We cannot make significant decisions without Clarion’s approval. Accordingly, we account for our interest in the Partnership using the equity method. As of March 31, 2015, the Partnership owned six retail real estate properties. We are the manager of the Partnership and its properties, earning fees for acquisitions, dispositions, management, leasing, and financing. Intercompany profit generated from fees is eliminated in consolidation. We also have the opportunity to receive performance-based earnings through our Partnership interest. Accounting policies for the Partnership are similar to accounting policies followed by the Trust. The Partnership is subject to a buy-sell provision which is customary for real estate joint venture agreements and the industry. Either partner may initiate this provision at any time, which could result in either the sale of our interest or the use of available cash or borrowings to acquire Clarion’s interest.

The following tables provide summarized operating results and the financial position of the Partnership:

	Three Months Ended
	March 31,
	2015		2014
	(In thousands)
OPERATING RESULTS
Revenue	$	4,744	$	5,018
Expenses
Other operating expenses	2,129		2,110
Depreciation and amortization	1,222		1,487
Interest expense	519		839
Total expenses	3,870		4,436
Net income	$	874	$	582
Our share of net income from real estate partnership	$	299	$	213

	March 31,		December 31,
	2015		2014
	(In thousands)
BALANCE SHEETS
Real estate, net	$	148,314	$	149,203
Cash	3,765		2,864
Other assets	5,530		5,346
Total assets	$	157,609	$	157,413
Mortgages payable	$	34,385	$	34,385
Other liabilities	3,711		3,673
Partners’ capital	119,513		119,355
Total liabilities and partners’ capital	$	157,609	$	157,413
Our share of unconsolidated debt	$	10,316	$	10,316
Our investment in real estate partnership	$	32,410	$	32,367