XML 22 R11.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Investments in Unconsolidated Entities
3 Months Ended
Mar. 31, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Entities Investments in Unconsolidated Entities
The following is a summary of our investments in unconsolidated entities as of March 31, 2024 and December 31, 2023 (dollars in thousands):
Ownership % Number of Properties
Carrying Amount (1) of Investment as of
Investment
As of March 31, 2024
March 31, 2024December 31, 2023
Bellagio Las Vegas Joint Venture - Common Equity Interest21.9%1$287,972 $296,097 
Bellagio Las Vegas Joint Venture - Preferred Equity Interestn/an/a650,000 650,000 
Data Center Development Joint Venture80.0%2265,291 226,021 
Total investment in unconsolidated entities$1,203,263 $1,172,118 
(1) The total carrying amount of the investments was greater than the underlying equity in net assets (i.e., basis difference) by $2.2 million as of March 31, 2024.
A.    Bellagio Las Vegas Joint Venture Interests
Our investment in the joint venture that owns a 95.0% interest in the real estate of The Bellagio Las Vegas includes $301.4 million of common equity for an indirect interest of 21.9% in the property and a $650.0 million preferred equity interest. During the three months ended March 31, 2024, we recognized interest income of $13.0 million for 8.1% preferential cumulative distributions within 'Other revenue' in our consolidated statements of income and comprehensive income. The unconsolidated entity had total debt outstanding of $3.0 billion as of March 31, 2024, all of which was non-recourse to us with limited customary exceptions.
B.    Data Center Development Joint Venture
We own an 80.0% equity interest in a data center development joint venture; however, we are not the primary beneficiary because we do not have power to direct activities that significantly impact the joint venture's economic performance. Our maximum exposure to loss associated with this VIE is limited to our equity investment and our pro rata share of the remaining $70.1 million of estimated development costs for the first phase of the project.