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


	Range of Ownership (1)	December 31, 2022		December 31, 2021
Condominium and Mixed Use Development:
New York City SMSA	4.1% - 22.8%	$	16,806	$	22,654
All other U.S. areas	12.5% - 77.8%	76,544		57,485
		93,350		80,139
Apartment Buildings:

All other U.S. areas	50.0%	9,471		11,900
		9,471		11,900
Hotels:
New York City SMSA	0.4% - 12.3%	800		1,635
International	49.0%	1,710		1,522
		2,510		3,157
Commercial:
New York City SMSA	49.0%	7,869		—
All other U.S. areas	1.6%	7,478		7,290
		15,347		7,290

Other	15.0% - 49.0%	439		2,576
Investments in real estate ventures		$	121,117	$	105,062

(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 various factors including potential dilution, financing or admission of additional partners.


	December 31, 2022		December 31, 2021
Condominium and Mixed Use Development:
New York City SMSA	$	498	$	396
All other U.S. areas	16,723		33,719
	17,221		34,115
Apartment Buildings:

All other U.S. areas	—		11,900
	—		11,900
Hotels:
New York City SMSA	206		1,848

	206		1,848
Commercial:
New York City SMSA	8,070		—

	8,070		—

Other	72		—
Total contributions	$	25,569	$	47,863

For 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 years ended December 31, 2022 and 2021. New Valley’s direct investment percentage for these ventures did not significantly change.


	December 31, 2022		December 31, 2021
Condominium and Mixed Use Development:
New York City SMSA	$	2,187	$	4,440
All other U.S. areas	161		13,593
	2,348		18,033
Apartment Buildings:

All other U.S. areas	550		18,566
	550		18,566




Commercial:

All other U.S. areas	1,018		575
	1,018		575

Other	4,459		—
Total distributions	$	8,375	$	37,174

Of the distributions received by New Valley from its investment in real estate ventures, $3,429 and $25,326 were from distributions of earnings and $4,946 and $11,848 were a return of capital for the years ended December 31, 2022 and 2021, respectively. Distributions from earnings are included in cash from operations in the consolidated statements of cash flows, while distributions from return of capital are included in cash flows from investing activities in the consolidated statements of cash flows.


	Year Ended December 31,
	2022		2021		2020
Condominium and Mixed Use Development:
New York City SMSA	$	(4,554)	$	(4,147)	$	(17,167)
All other U.S. areas	(1,915)		(1)		(16,578)
	(6,469)		(4,148)		(33,745)
Apartment Buildings:

All other U.S. areas	(1,879)		18,566		(284)
	(1,879)		18,566		(284)
Hotels:
New York City SMSA	(1,041)		(1,597)		(3,248)
International	188		(330)		(308)
	(853)		(1,927)		(3,556)
Commercial:
New York City SMSA	(201)		(2,591)		1,340
All other U.S. areas	1,206		780		(437)
	1,005		(1,811)		903

Other	2,250		(430)		(8,046)
Total equity in earnings (losses) from real estate ventures	$	(5,946)	$	10,250	$	(44,728)

The Company recorded impairment expense of $490, $2,713 and $16,513 for the years ended December 31, 2022, 2021 and 2020, respectively. The expense related to one commercial venture in each of 2022 and 2021 and the expense in 2020 related to six condominium and mixed use development units. As a result of the Company recording impairment charges on certain of its investments in real estate ventures, the impaired real estate ventures were recorded at fair value as of the period when the impairment charge was recorded. The impaired real estate ventures were measured at fair value on a nonrecurring basis as a result of recording an other-than-temporary impairment charge.

During the year ended 2021, New Valley’s Natura joint venture sold a parcel of land located in Miami, FL. New Valley recognized equity in earnings of $3,899 from the venture and received distributions of $5,168 for the year ended 2021. As of December 31, 2022, the venture had a carrying value of $12,995.

During the year ended 2021, New Valley’s Maryland joint venture sold its apartment complexes located in Baltimore, Maryland. New Valley recognized equity in earnings of $18,566 from the venture and received distributions of $18,566 for the year ended 2021. As of December 31, 2022, the venture had a carrying value of $0.

New Valley invested $6,263 during the year ended December 31, 2022 for an approximate 75% interest in Nash Square Upstream JV LLC. The joint venture plans to develop a mixed use development. The venture is a variable interest entity (“VIE”); 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 Nash Square Upstream JV LLC was $6,510 at December 31, 2022.

New Valley invested $4,000 during the year ended December 31, 2022 for an approximate 25% interest in BH NV Aventura LLC. The joint venture plans to develop a mixed use development. The venture is a VIE; 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 BH NV Aventura LLC was $4,071 at December 31, 2022.

New Valley invested $4,000 during the year ended December 31, 2022 for an approximate 35% interest in BH NV NMB Venture LLC. The joint venture plans to develop a mixed use development. The venture is a VIE; 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 BH NV NMB Venture LLC was $4,080 at December 31, 2022.

The Company has determined that New Valley is the primary beneficiary of one real estate venture because it controls the activities that most significantly impact the economic performance of the real estate venture. Consequently, New Valley consolidates this variable interest entity (“VIE”).

The carrying amount of the consolidated assets of the VIE was $0 at both December 31, 2022 and December 31, 2021. Those assets are owned by the VIE, not the Company. The consolidated VIE had no recourse liabilities as of December 31, 2022 and December 31, 2021. A VIE’s assets can only be used to settle the obligations of that VIE. The VIE is not a guarantor 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:


	December 31, 2022
Condominium and Mixed Use Development:
New York City SMSA	$	16,806
All other U.S. areas	76,544
	93,350
Apartment Buildings:

All other U.S. areas	9,471
	9,471
Hotels:
New York City SMSA	800
International	1,710
	2,510
Commercial:
New York City SMSA	7,869
All other U.S. areas	7,478
	15,347

Other	439
Total maximum exposure to loss	$	121,117

New Valley capitalized $4,432 and $2,669 of interest costs into the carrying value of its ventures whose projects were currently under development during the years ended December 31, 2022 and December 31, 2021, respectively.

The joint venture agreements through which New Valley invests in real estate ventures set forth certain conditions where New Valley or its affiliate may be required to contribute payments towards the satisfaction of liabilities of the other partners in the joint venture, or to otherwise indemnify other partners. Mostly, these contribution/indemnity requirements are triggered in the event New Valley or its affiliate commits an act that results in liability of another partner under a guarantee that the other partner has given to a lender in connection with a loan. The guarantees given in connection with the loans may include non-recourse carve-out, environmental, carry and/or completion guarantees, depending on the specific project. In some instances, New Valley or its affiliate would be proportionately liable in the event of liability under a guarantee that is not the fault of any of the partners in the joint venture. In very limited circumstances, New Valley has agreed to be a guarantor directly in connection with a loan.

The Company believes that as of December 31, 2022, in the event New Valley becomes legally obligated to contribute funds or otherwise indemnify another partner due to a triggering event under a guarantee, or becomes legally obligated as a guarantor (in the limited circumstances where New Valley is a direct guarantor under the loan documents), the real estate underlying the applicable project is expected to be sufficient to largely repay any guaranteed obligation (although a lender need not necessarily resort to foreclosing on the real estate before seeking recourse under a loan guarantee). New Valley has no additional capital commitments as of December 31, 2022.

Pursuant to Rule 4-08(g), the following summarized financial data for unconsolidated subsidiaries includes information for the following: Other Condominium and Mixed Use Development, Apartment Buildings, Hotels, Commercial and Other.


	Year Ended December 31,
	2022		2021		2020
Income Statements
Revenue	$	117,836	$	301,703	$	386,859
Cost of sales	63,618		317,894		302,234
Other expenses	143,619		117,985		270,642
Loss from continuing operations	$	(89,401)	$	(134,176)	$	(186,017)


	December 31, 2022		December 31, 2021

Balance Sheets
Investment in real estate	$	1,529,516	$	1,434,205
Total assets	1,667,802		1,513,581
Total debt	1,193,638		1,107,366
Total liabilities	1,480,725		1,284,579
Non-controlling interest	73,391		63,781


	Year Ended December 31,
	2022		2021		2020
Income Statements
Revenue	$	166,169	$	42,549	$	130,742
Cost of sales	5,049		3,671		2,671
Other expenses	293,761		201,211		256,973
Loss from continuing operations	$	(132,641)	$	(162,333)	$	(128,902)


	December 31, 2022		December 31, 2021

Balance Sheets
Investment in real estate	$	1,580,798	$	1,553,911
Total assets	1,651,072		1,631,664
Total debt	1,113,419		1,110,700
Total liabilities	1,281,161		1,213,044
Non-controlling interest	374,608		412,165


	Year Ended December 31,
	2022		2021		2020
Income Statements
Revenue	$	10,226	$	1,662	$	7,911

Equity in (losses) earnings	37,690		24,383		(13,671)
Other expenses	12,274		1,412		4,740
Income (loss) from continuing operations	$	35,642	$	24,633	$	(10,500)


	December 31, 2022		December 31, 2021

Balance Sheets
Investment in real estate	$	430,961	$	392,754
Total assets	486,655		444,520
Total debt	321,587		227,724
Total liabilities	331,928		233,329
Non-controlling interest	112,141		152,775

Escena. In March 2008, a wholly owned subsidiary of New Valley purchased a loan collateralized by a substantial portion of a 450-acre approved master planned community in Palm Springs, California known as “Escena.” In April 2009, New Valley completed the foreclosure process and took title to the collateral. The project consisted of 615 residential lots with site and public infrastructure, an 18-hole golf course, a completed clubhouse, and a seven-acre site approved for a 450-room hotel.


	December 31, 2022		December 31, 2021
Land and land improvements	$	—	$	8,520
Building and building improvements	—		1,926
Other	—		1,643
	—		12,089
Less accumulated depreciation	—		(2,991)
Investment in real estate, net	$	—	$	9,098

The Company recorded operating income of $1,316 and $63, and operating losses of $735 for the years ended December 31, 2022, 2021 and 2020, respectively, from Escena. In April 2022, New Valley sold Escena and received approximately $15,300 in net cash proceeds. The Company recognized the revenue in accordance with the scope of ASC Topic 606 since New Valley has no continuing investment or involvement. The sale was presented as revenue and the cost of the investment as cost of sales on the condensed consolidated statements of operations.

Investment in Sagaponack. In April 2015, New Valley invested $12,502 in a residential real estate project located in Sagaponack, NY. In August 2020, New Valley sold the project for $20,500 and recognized the revenue in accordance with the

Townhome A (11 Beach Street). In November 2020, New Valley received, as part of a liquidating distribution from a real estate joint venture, Unit TH-A, a townhouse located in Manhattan, NY. In April 2021, New Valley sold the unit for $6,750 and recognized the revenue in accordance with the scope of ASC Topic 606 since New Valley has no continuing investment or involvement. The sale was presented as revenue and the cost of the investment as cost of sales on the consolidated statements of operations.

Real Estate Market Conditions. Because of the risks and uncertainties of the real estate markets, the Company will continue to perform additional assessments to determine the impact of the markets, if any, on the Company’s consolidated financial statements. Thus, future impairment charges may occur.