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⁾	September 30, 2019		December 31, 2018
Condominium and Mixed Use Development:
New York City SMSA	3.1% - 49.5%	$	85,221	$	65,007
All other U.S. areas	15.0% - 48.5%	48,091		31,392
		133,312		96,399
Apartment Buildings:
All other U.S. areas	7.6% - 16.3%	—		—
		—		—
Hotels:
New York City SMSA	1.0% - 18.4%	2,513		15,782
International	49.0%	2,405		2,334
		4,918		18,116
Commercial:
New York City SMSA	49.0%	1,968		1,867
All other U.S. areas	1.6%	7,468		7,053
		9,436		8,920

Other:	15.0% - 50.0%	11,903		17,670
Investments in real estate ventures		$	159,569	$	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.



	Nine Months Ended
	September 30,
	2019		2018
Condominium and Mixed Use Development:
New York City SMSA	$	21,760	$	1,158
All other U.S. areas	14,000		—
	35,760		1,158
Apartment Buildings:
New York City SMSA	—		522
	—		522
Hotels:
New York City SMSA	172		167
	172		167

Other:	337		4,285
Total contributions	$	36,269	$	6,132

During the nine months ended September 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% to 17% for the nine months ended September 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 during the nine months ended September 30, 2019 and September 30, 2018. New Valley’s direct investment percentage for these ventures did not significantly change.



	Nine Months Ended
	September 30,
	2019		2018
Condominium and Mixed Use Development:
New York City SMSA	$	3,380	$	38,860
All other U.S. areas	1,279		—
	4,659		38,860
Apartment Buildings:
All other U.S. areas	79		295
	79		295
Hotels:
New York City SMSA	21,572		—
	21,572		—
Commercial:
New York City SMSA	13		9
All other U.S. areas	160		10,072
	173		10,081

Other	8,088		657
Total distributions	$	34,571	$	49,893

Of the distributions received by New Valley from its investment in real estate ventures, $3,637 and $12,074 were from distributions of earnings for the nine months ended September 30, 2019 and 2018, respectively, and $30,934 and $37,819 were a return of capital for the nine months ended September 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.

During the nine months ended September 30, 2019, New Valley’s Park Lane joint venture sold 80% of its interest in the Park Lane Hotel, a Hotel located in the New York City SMSA. New Valley recognized equity in earnings of $10,328 from the sale and received distributions of $20,788 for the nine months ended September 30, 2019, respectively. The sale reduced New Valley’s direct ownership percentage of the Park Lane Hotel from 5.2% to 1.0%. New Valley continues to account for its investment in the joint venture under the equity method of accounting because its ownership percentage in its direct investment continues to meet the threshold for equity method accounting.



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
Condominium and Mixed Use Development:
New York City SMSA	$	2,099		$	1,732		$	(1,127	)	$	(1,880	)
All other U.S. areas	4,600			(151		)	2,234			(976		)
	6,699			1,581			1,107			(2,856		)
Apartment Buildings:
New York City SMSA	—			(1,267		)	—			(4,550		)
All other U.S. areas	76			156			79			142
	76			(1,111		)	79			(4,408		)
Hotels:
New York City SMSA	(102		)	(749		)	8,132			(2,200		)
International	434			206			70			(362		)
	332			(543		)	8,202			(2,562		)
Commercial:
New York City SMSA	(149		)	(228		)	114			(617		)
All other U.S. areas	146			273			517			1,416
	(3		)	45			631			799

Other:	946			322			1,983			649
Equity in earnings (losses) from real estate ventures	$	8,050		$	294		$	12,002		$	(8,378	)

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 four 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 September 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 $4,445 and $8,311 for the three and nine months ended September 30, 2019, respectively.

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 September 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 nine months ended September 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 $529 at September 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 $10,487 at September 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 $5,234 at September 30, 2019.

In September 2019, New Valley invested $14,000 for an approximate 38.9% interest in The Park on Fifth (500 Alton Rd). 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 The Park on Fifth (500 Alton Rd) was $14,000 at September 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 September 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 September 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:



	September 30, 2019
Condominium and Mixed Use Development:
New York City SMSA	$	90,143
All other U.S. areas	60,591
	150,734
Hotels:
New York City SMSA	2,513
International	2,405
	4,918
Commercial:
New York City SMSA	1,968
All other U.S. areas	7,468
	9,436

Other:	26,535
Total maximum exposure to loss	$	191,623

New Valley capitalized $1,703 and $4,706 of interest costs into the carrying value of its ventures whose projects were currently under development for the three and nine months ended September 30, 2019. New Valley capitalized $2,246 and $6,549 of interest costs into the carrying value of its venture whose projects were currently under development for the three and nine months ended September 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 $15,394 and $16,603 from these projects for the nine months ended September 30, 2019 and 2018, respectively.

On November 1, 2019, Douglas Elliman sold its 50% interest in Innova Risk Management, an insurance brokerage company. Douglas Elliman received $8,732 in cash in November 2019 and may receive an additional $1,000 in a potential earn out over a period of two years.

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						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
Income Statement
Revenue	$	1		$	6		$	4		$	27
Other expenses	495			745			3,250			145,223
Loss from continuing operations	$	(494	)	$	(739	)	$	(3,246	)	$	(145,196	)



	September 30, 2019			December 31, 2018
Land and land improvements	$	8,910		$	8,910
Building and building improvements	1,926			1,900
Other	1,680			2,162
	12,516			12,972
Less accumulated depreciation	(2,467		)	(2,802		)
	$	10,049		$	10,170

New Valley recorded operating losses of $965 and $918 for the three months ended September 30, 2019 and 2018, respectively, from Escena. New Valley recorded operating losses of $633 and $408 for the nine months ended September 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 September 30, 2019 and December 31, 2018, the assets of Sagaponack consisted of land and land improvements of $17,960 and $16,050, respectively.