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Investment in Unconsolidated Real Estate Ventures (Tables)
 6 Months Ended
Jun. 30, 2019
Equity Method Investments And Joint Ventures [Abstract]  
Investment in Real Estate Ventures and Share of Real Estate Ventures' Income (Loss)

The following is a summary of the financial position of the Real Estate Ventures in which the Company held interests as of June 30, 2019 and December 31, 2018 (in thousands):

June 30, 2019

 

 

December 31, 2018

 

Net property

$

844,659

 

 

$

835,983

 

Other assets (a)

 

362,149

 

 

 

159,499

 

Other liabilities (a)

 

287,685

 

 

 

85,681

 

Debt, net (b)

 

593,543

 

 

 

365,707

 

Equity (c)

 

325,580

 

 

 

544,094

 

(a)

The increase in ‘Other assets’ and ‘Other liabilities’ for the period ended June 30, 2019 compared to the period ended December 31, 2018 is due to the recording of the right of use asset and lease liability of $197.1 million and $249.3 million, respectively, for the MAP Venture ground lease upon adoption of Topic 842, which was adopted by the venture on January 1, 2019. 

(b)

This amount increased as a result of third-party debt financing received by Herndon Innovation Center Venture, an unconsolidated real estate venture on March 29, 2019 and April 1, 2019. See “Herndon Innovation Center Metro Portfolio Venture” section below for further information.

(c)

This amount includes the effect of the basis difference between the Company's historical cost basis and the basis recorded at the real estate venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from the impairment of investments, purchases of third party interests in existing real estate ventures and upon the transfer of assets that were previously owned by the Company into a real estate venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the real estate venture level.

The following is a summary of results of operations of the Real Estate Ventures in which the Company held interests during the three- and six-month periods ended June 30, 2019 and 2018, respectively (in thousands):

 

 

 

Three Months Ended June 30, 2019

 

 

evo at Cira Centre South (a)

 

 

MAP Venture

 

 

Other

 

 

Total

 

Revenue

$

-

 

 

$

17,796

 

 

$

15,567

 

 

$

33,363

 

Operating expenses

 

-

 

 

 

(11,611

)

 

 

(5,757

)

 

 

(17,368

)

Interest expense, net

 

-

 

 

 

(2,532

)

 

 

(3,788

)

 

 

(6,320

)

Depreciation and amortization

 

-

 

 

 

(6,550

)

 

 

(6,922

)

 

 

(13,472

)

Net loss

$

-

 

 

$

(2,897

)

 

$

(900

)

 

$

(3,797

)

Ownership interest %

 

50

%

 

 

50

%

 

(b)

 

 

(b)

 

Company's share of net loss

$

-

 

 

$

(1,449

)

 

$

(59

)

 

$

(1,508

)

Basis adjustments and other

 

-

 

 

 

15

 

 

 

2

 

 

 

17

 

Equity in loss of Real Estate Ventures

$

-

 

 

$

(1,434

)

 

$

(57

)

 

$

(1,491

)

 

 

Three Months Ended June 30, 2018

 

 

evo at Cira Centre South (a)

 

 

MAP Venture

 

 

Other

 

 

Total

 

Revenue

$

-

 

 

$

16,653

 

 

$

24,448

 

 

$

41,101

 

Operating expenses

 

-

 

 

 

(9,821

)

 

 

(10,268

)

 

 

(20,089

)

Interest expense, net

 

-

 

 

 

(3,741

)

 

 

(14,411

)

 

 

(18,152

)

Depreciation and amortization

 

-

 

 

 

(4,741

)

 

 

(9,051

)

 

 

(13,792

)

Net loss

$

-

 

 

$

(1,650

)

 

$

(9,282

)

 

$

(10,932

)

Ownership interest %

 

50

%

 

 

50

%

 

(b)

 

 

(b)

 

Company's share of net income (loss)

$

-

 

 

$

(825

)

 

$

348

 

 

$

(477

)

Basis adjustments and other

 

-

 

 

 

(31

)

 

 

150

 

 

 

119

 

Equity in income (loss) of Real Estate Ventures

$

-

 

 

$

(856

)

 

$

498

 

 

$

(358

)

    

 

Six Months Ended June 30, 2019

 

 

evo at Cira Centre South (a)

 

 

MAP Venture

 

 

Other

 

 

Total

 

Revenue

$

-

 

 

$

36,084

 

 

$

32,338

 

 

$

68,422

 

Operating expenses

 

-

 

 

 

(23,766

)

 

 

(12,320

)

 

 

(36,086

)

Interest expense, net

 

-

 

 

 

(5,068

)

 

 

(5,172

)

 

 

(10,240

)

Depreciation and amortization

 

-

 

 

 

(12,899

)

 

 

(14,285

)

 

 

(27,184

)

Net income (loss)

$

-

 

 

$

(5,649

)

 

$

561

 

 

$

(5,088

)

Ownership interest %

 

50

%

 

 

50

%

 

(b)

 

 

(b)

 

Company's share of net income (loss)

$

-

 

 

$

(2,825

)

 

$

5

 

 

$

(2,820

)

Basis adjustments and other

 

-

 

 

 

(41

)

 

 

12

 

 

 

(29

)

Equity in income (loss) of Real Estate Ventures

$

-

 

 

$

(2,866

)

 

$

17

 

 

$

(2,849

)

 

 

Six Months Ended June 30, 2018

 

 

evo at Cira Centre South (a)

 

 

MAP Venture

 

 

Other

 

 

Total

 

Revenue

$

995

 

 

$

33,733

 

 

$

49,194

 

 

$

83,922

 

Operating expenses

 

(250

)

 

 

(20,128

)

 

 

(20,479

)

 

 

(40,857

)

Interest expense, net

 

(388

)

 

 

(7,532

)

 

 

(8,158

)

 

 

(16,078

)

Depreciation and amortization

 

(376

)

 

 

(9,442

)

 

 

(18,358

)

 

 

(28,176

)

Loss on early extinguishment of debt

 

(718

)

 

 

-

 

 

 

-

 

 

 

(718

)

Net income (loss)

$

(737

)

 

$

(3,369

)

 

$

2,199

 

 

$

(1,907

)

Ownership interest %

 

50

%

 

 

50

%

 

(b)

 

 

(b)

 

Company's share of net income (loss)

$

(369

)

 

$

(1,685

)

 

$

871

 

 

$

(1,183

)

Basis adjustments and other

 

11

 

 

 

(24

)

 

 

13

 

 

 

-

 

Equity in income (loss) of Real Estate Ventures

$

(358

)

 

$

(1,709

)

 

$

884

 

 

$

(1,183

)

(a)

The Company sold its 50% ownership interest in evo at Cira Centre South Venture during the first quarter of 2018.

(b)

The Company’s unconsolidated ownership interests ranged from 15% to 70% during the three and six months ended June 30, 2019 and 25% to 70% during the three and six months ended June 30, 2018, subject to specified priority allocations of distributable cash in certain of the Real Estate Ventures.