Investments in and Advances to Joint Ventures

9 Months Ended

Sep. 30, 2022

Equity Method Investments And Joint Ventures [Abstract]

Investments in and Advances to Joint Ventures

At September 30, 2022 and December 31, 2021, the Company had ownership interests in various unconsolidated joint ventures that had investments in 19 and 47 shopping center properties, respectively. Condensed combined financial information of the Company’s unconsolidated joint venture investments is as follows (in thousands):


	September 30, 2022			December 31, 2021
Condensed Combined Balance Sheets
Land	$	214,310		$	378,442
Buildings		651,111			1,092,245
Fixtures and tenant improvements		69,964			123,313
		935,385			1,594,000
Less: Accumulated depreciation		(218,942	)		(441,215	)
		716,443			1,152,785
Construction in progress and land		1,655			5,778
Real estate, net		718,098			1,158,563
Cash and restricted cash		43,951			37,535
Receivables, net		11,122			16,854
Other assets, net		38,973			49,029
	$	812,144		$	1,261,981

Mortgage debt	$	539,897		$	873,336
Notes and accrued interest payable to the Company		3,194			3,331
Other liabilities		41,304			51,473
		584,395			928,140
Accumulated equity		227,749			333,841
	$	812,144		$	1,261,981

Company's share of accumulated equity	$	43,886		$	59,286
Basis differentials		(760	)		2,946
Deferred development fees, net of portion related to the Company's interest		(319	)		(937	)
Amounts payable to the Company		3,194			3,331
Investments in and Advances to Joint Ventures, net	$	46,001		$	64,626


	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2022			2021			2022			2021
Condensed Combined Statements of Operations
Revenues from operations	$	25,855		$	48,666		$	105,666		$	150,623
Expenses from operations:
Operating expenses		6,975			12,931			28,991			41,217
Impairment charges		9,010			—			17,550			—
Depreciation and amortization		9,450			16,605			37,123			50,309
Interest expense		8,241			10,980			26,560			32,898
Other expense, net		6,120			2,832			11,114			8,806
		39,796			43,348			121,338			133,230
(Loss) income before gain on disposition of real estate		(13,941	)		5,318			(15,672	)		17,393
Gain (loss) on disposition of real estate, net		119,813			(455	)		121,505			36,132
Net income attributable to unconsolidated joint ventures	$	105,872		$	4,863		$	105,833		$	53,525
Company's share of equity in net income of joint ventures	$	21,276		$	1,760		$	21,898		$	9,897
Basis differential adjustments(A)		4,642			64			5,570			1,162
Equity in net income of joint ventures	$	25,918		$	1,824		$	27,468		$	11,059

(A)

The difference between the Company’s share of net income, as reported above, and the amounts included in the Company’s consolidated statements of operations is attributable to the amortization of basis differentials, the recognition of deferred gains, differences in gain (loss) on sale of certain assets recognized due to the basis differentials and other than temporary impairment charges.

The impact of the COVID-19 pandemic on revenues and receivables for the Company’s joint ventures is more fully described in Note 2.

Revenues earned by the Company related to all of the Company’s unconsolidated joint ventures are as follows (in millions):


	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2022		2021		2022		2021
Revenue from contracts:
Asset and property management fees	$	1.7	$	2.8	$	6.2	$	8.0
Leasing commissions and development fees		0.6		0.6		1.6		1.5
		2.3		3.4		7.8		9.5
Other		0.2		0.4		0.8		1.2
	$	2.5	$	3.8	$	8.6	$	10.7

Disposition of Shopping Centers and Joint Venture Interests

In the third quarter of 2022, the DDRM Joint Venture sold a portfolio of 13 shopping centers for an aggregate sales price of $387.6 million ($77.5 million at the Company's share) with the related mortgage debt of $225.0 million repaid upon closing. In 2022, the DDRM Joint Venture sold two additional shopping centers for an aggregate sales price of $41.0 million ($8.2 million at the Company’s share). The Company’s share of the gain on sale on these transactions was $27.3 million.

In the second quarter of 2022, the Company sold its 20% interest in the SAU Joint Venture to its partner, the State of Utah, based on a gross asset value of $155.7 million (at 100%). In addition, the Company sold its 50% interest in Lennox Town Center to its partner, based on a gross asset value of $77.0 million (at 100%). These transactions resulted in Gain on Sale of Interests of $42.2 million.

In the first quarter of 2022, the Company acquired its joint venture partner’s 80% interest in one asset owned by the DDRM Joint Venture (Casselberry Commons, Casselberry, Florida) for $35.6 million, and stepped up the previous 20% interest due to change in control. The transaction resulted in Gain on Change in Control of Interests of $3.3 million (Note 4).