New Valley holds equity investments in various real estate projects domestically and internationally. The majority of New Valley’s investment in real estate ventures were located in the New York City Standard Metropolitan Statistical Area (“SMSA”). New Valley aggregates the disclosure of its investments in real estate ventures by property type and operating characteristics.



	Range of Ownership ⁽¹⁾	June 30, 2019		December 31, 2018
Condominium and Mixed Use Development:
New York City SMSA	3.1% - 49.5%	$	84,593	$	65,007
All other U.S. areas	15.0% - 48.5%	28,903		31,392
		113,496		96,399
Hotels:
New York City SMSA	5.2% - 18.4%	2,615		15,782
International	49.0%	1,970		2,334
		4,585		18,116
Commercial:
New York City SMSA	49.0%	2,121		1,867
All other U.S. areas	1.6%	7,354		7,053
		9,475		8,920

Other:	15.0% - 50.0%	17,210		17,670
Investments in real estate ventures		$	144,766	$	141,105

⁽¹⁾ The Range of Ownership reflects New Valley’s estimated current ownership percentage. New Valley’s actual ownership percentage as well as the percentage of earnings and cash distributions may ultimately differ as a result of a number of factors including potential dilution, financing or admission of additional partners.



	Six Months Ended June 30,
	2019		2018
Condominium and Mixed Use Development:
New York City SMSA	$	21,537	$	533
	21,537		533
Hotels:
New York City SMSA	172		167
	172		167

Other:	199		3,643
Total contributions	$	21,908	$	4,343

During the six months ended June 30, 2019, New Valley did not make certain capital contributions to Monad Terrace, a Condominium and Mixed Use Development located in All other U.S. areas. The Company’s ownership percentage was reduced from 18.0% to 17.9% for the six months ended June 30, 2019. For other ventures where New Valley previously held an investment, New Valley contributed its proportionate share of additional capital along with contributions by the other investment partners



	Six Months Ended June 30,
	2019		2018
Condominium and Mixed Use Development:
New York City SMSA	$	571	$	34,490
All other U.S. areas	1,279		—
	1,850		34,490
Apartment Buildings:
All other U.S. areas	3		201
	3		201
Hotels:
New York City SMSA	21,572		—
	21,572		—
Commercial:
New York City SMSA	9		—
All other U.S. areas	129		341
	138		341

Other	1,697		644
Total distributions	$	25,260	$	35,676

Of the distributions received by New Valley from its investment in real estate ventures, $2,060 and $8,542 were from distributions of earnings for the six months ended June 30, 2019 and 2018, respectively, and $23,200 and $27,134 were a return of capital for the six months ended June 30, 2019 and 2018, respectively. Distributions from earnings are included in cash from operations in the Condensed Consolidating Statements of Cash Flows, while distributions that are returns of capital are included in cash flows from investing activities in the Condensed Consolidating Statements of Cash Flows.



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Condominium and Mixed Use Development:
New York City SMSA	$	(1,120	)	$	(152	)	$	(3,226	)	$	(3,613	)
All other U.S. areas	(2,258		)	(321		)	(2,366		)	(826		)
	(3,378		)	(473		)	(5,592		)	(4,439		)
Apartment Buildings:
All other U.S. areas	3			(1,717		)	3			(3,297		)
	3			(1,717		)	3			(3,297		)
Hotels:
New York City SMSA	8,942			(636		)	8,234			(1,450		)
International	122			(143		)	(364		)	(568		)
	9,064			(779		)	7,870			(2,018		)
Commercial:
New York City SMSA	384			(121		)	263			(388		)
All other U.S. areas	79			913			371			1,143
	463			792			634			755

Other:	239			65			1,037			327
Equity in earnings (losses) from real estate ventures	$	6,391		$	(2,112	)	$	3,952		$	(8,672	)

As part of the Company’s ongoing assessment of the carrying values of its investments in real estate ventures, the Company determined that the fair value of three New York City SMSA and one All other U.S. areas Condominium and Mixed Use Development ventures were less than their carrying value as of June 30, 2019. The Company determined that the impairment was other than temporary. The Company recorded an impairment charge as a component of equity in earnings from real estate ventures of $3,866 for the three and six months ended June 30, 2019.

As part of the Company’s ongoing assessment of the carrying values of its investments in real estate ventures, the Company determined that the fair value of a New York City SMSA Condominium and Mixed Use Development venture was less than its carrying value as of June 30, 2018. The Company determined that the impairment was other than temporary. The Company recorded an impairment charge as a component of equity in losses from real estate ventures of $2,700 and $10,174, of which $2,113 and $8,467 were attributed to the Company for the three and six months ended June 30, 2018, respectively.

In February 2019, New Valley invested $500 for an approximate 37.0% interest in 352 6th, LLC. The joint venture plans to develop a condominium complex. The venture is a variable interest entity; however, New Valley is not the primary beneficiary. New Valley accounts for this investment under the equity method of accounting. New Valley's maximum exposure to loss as a result of its investment in 352 6th, LLC was $517 at June 30, 2019.

In April 2019, New Valley invested $10,018 for an approximate 17.0% interest in Meatpacking Plaza. The joint venture plans to construct a mixed use development. The venture is a variable interest entity; however, New Valley is not the primary beneficiary. New Valley accounts for this investment under the equity method of accounting. New Valley's maximum exposure to loss as a result of its investment in Meatpacking Plaza was $10,251 at June 30, 2019.

Also in April 2019, New Valley invested $5,000 for an approximate 5.5% interest in 9 DeKalb. The joint venture plans to develop a mixed use development. The venture is a variable interest entity; however, New Valley is not the primary beneficiary. New Valley accounts for this investment under the equity method of accounting. New Valley's maximum exposure to loss as a result of its investment in 9 DeKalb was $5,116 at June 30, 2019.

The Company has determined that New Valley is the primary beneficiary of two real estate ventures because it controls the activities that most significantly impact economic performance of each of the two real estate ventures. Consequently, New Valley consolidates these variable interest entities (“VIEs”).

The carrying amount of the consolidated assets of the VIEs was $976 and $1,387 as of June 30, 2019 and December 31, 2018, respectively. Those assets are owned by the VIEs, not the Company. Neither of the two consolidated VIEs had recourse liabilities as of June 30, 2019 and December 31, 2018. A VIE’s assets can only be used to settle obligations of that VIE. The VIEs are not guarantors of the Company’s senior notes and other debts payable.

For the remaining investments in real estate ventures, New Valley determined that the entities were VIEs but New Valley was not the primary beneficiary. Therefore, New Valley’s investment in such real estate ventures has been accounted for under the equity method of accounting.

New Valley’s maximum exposure to loss from its investments in real estate ventures consisted of the net carrying value of the venture adjusted for any future capital commitments and/or guarantee arrangements. The maximum exposure to loss was as follows:



	June 30, 2019
Condominium and Mixed Use Development:
New York City SMSA	$	89,515
All other U.S. areas	41,403
	130,918
Hotels:
New York City SMSA	2,615
International	1,970
	4,585
Commercial:
New York City SMSA	2,121
All other U.S. areas	7,354
	9,475

Other:	31,988
Total maximum exposure to loss	$	176,966

New Valley capitalized $1,688 and $3,003 of interest costs into the carrying value of its ventures whose projects were currently under development for the three and six months ended June 30, 2019. New Valley capitalized $2,094 and $4,303 of interest costs into the carrying value of its venture whose projects were currently under development for the three and six months ended June 30, 2018.

Douglas Elliman has been engaged by the developers as the sole broker or the co-broker for several of the real estate ventures that New Valley owns an interest. Douglas Elliman earned gross commissions of approximately $11,223 and $8,145 from these projects for the six months ended June 30, 2019 and 2018, respectively.

The following summarized financial data for certain unconsolidated subsidiaries that meet certain thresholds pursuant to SEC Regulation S-X Rule 210.10-01(b) includes information for the 125 Greenwich Street investment. New Valley has elected a one-month lag reporting period for the investment.



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Income Statement
Revenue	$	2		$	12		$	3		$	21
Other expenses	2,013			143,723			2,755			144,478
Loss from continuing operations	$	(2,011	)	$	(143,711	)	$	(2,752	)	$	(144,457	)



	June 30, 2019			December 31, 2018
Land and land improvements	$	8,910		$	8,910
Building and building improvements	1,900			1,900
Other	1,608			2,162
	12,418			12,972
Less accumulated depreciation	(2,409		)	(2,802		)
	$	10,009		$	10,170

New Valley recorded operating losses of $354 and $290 for the three months ended June 30, 2019 and 2018, respectively, from Escena. New Valley recorded operating income of $332 and $510 for the six months ended June 30, 2019 and 2018, respectively, from Escena.

Investment in Sagaponack. In April 2015, New Valley invested $12,502 in a residential real estate project located in Sagaponack, NY. The project is wholly owned and the balances of the project are included in the condensed consolidated financial statements of the Company. As of June 30, 2019, the assets of Sagaponack consisted of land and land improvements of $17,203.