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Real Estate Partnerships
12 Months Ended
Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]  
REAL ESTATE PARTNERSHIPS
REAL ESTATE PARTNERSHIPS
As of December 31, 2015, we had a joint venture arrangement (the “Partnership”) with affiliates of a discretionary fund created and advised by Clarion Partners (“Clarion”). We owned 30% of the equity in the Partnership and Clarion owned 70%. We held a general partnership interest, however, Clarion also held a general partnership interest and had substantive participating rights. We could not make significant decisions without Clarion’s approval. Accordingly, we accounted for our interest in the Partnership using the equity method. As of December 31, 2015, the Partnership owned six retail real estate properties. We were the manager of the Partnership and its properties, earning fees for acquisitions, dispositions, management, leasing, and financing. Intercompany profit generated from fees was eliminated in consolidation. We also had the opportunity to receive performance-based earnings through our Partnership interest. Accounting policies for the Partnership were similar to accounting policies followed by the Trust. As of December 31, 2015, we made total contributions of $48.8 million and received total distributions of $32.4 million. On January 13, 2016, we acquired Clarion's 70% interest in the partnership, as further discussed in Note 19.
The following tables provide summarized operating results and the financial position of the Partnership:
 
Year Ended December 31,
 
2015
 
2014
 
2013
 
(In thousands)
OPERATING RESULTS
 
 
 
 
 
Revenue
$
17,405

 
$
18,329

 
$
19,209

Expenses
 
 
 
 
 
Other operating expenses
5,992

 
5,948

 
5,999

Depreciation and amortization
4,974

 
5,678

 
5,506

Interest expense
2,062

 
2,759

 
3,363

Total expenses
13,028

 
14,385

 
14,868

Net income before gain on sale of real estate
4,377

 
3,944

 
4,341

Gain on sale of real estate

 
14,507

 

Net income
$
4,377

 
$
18,451

 
$
4,341

Our share of net income from real estate partnership before gain on sale of real estate
$
1,557

 
$
1,423

 
$
1,498

Our share of gain on sale of real estate
$

 
$
4,401

 
$



 
December 31,
 
2015
 
2014
 
(In thousands)
BALANCE SHEETS
 
 
 
Real estate, net
$
146,906

 
$
149,203

Cash
2,690

 
2,864

Other assets
5,495

 
5,346

Total assets
$
155,091

 
$
157,413

Mortgages payable
$
34,385

 
$
34,385

Other liabilities
3,554

 
3,673

Partners’ capital
117,152

 
119,355

Total liabilities and partners’ capital
$
155,091

 
$
157,413

Our share of unconsolidated debt
$
10,316

 
$
10,316

Our investment in real estate partnership
$
31,745

 
$
32,367



On June 5, 2014, the Partnership repaid an $11.9 million mortgage loan secured by one of its properties at par prior to the original maturity date of July 5, 2014. The partners made additional capital contributions totaling $11.9 million to repay the mortgage loan, of which our contribution was $3.6 million.
On July 24, 2014, the Partnership sold the fee interest in Pleasant Shops in Weymouth, Massachusetts for a sales price of $34.3 million, resulting in a gain on sale of $14.5 million. Our share of the gain was $4.4 million. The partners received distributions totaling $32.8 million as a result of the sale, of which our distribution was $10.4 million.
On September 2, 2014, the Partnership repaid a $10.5 million mortgage loan secured by one of its properties at par prior to the original maturity date of December 1, 2014. The partners made additional capital contributions totaling $10.5 million to repay the mortgage loan, of which our contribution was $3.2 million.