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Investments in and Advances to Joint Ventures (Tables)
 3 Months Ended
Mar. 31, 2014
Condensed Combined Financial Information of Company's Unconsolidated Joint Venture Investments

At March 31, 2014 and December 31, 2013, the Company had ownership interests in various unconsolidated joint ventures that had an investment in 166 and 170 shopping center properties, respectively. Condensed combined financial information of the Company’s unconsolidated joint venture investments is as follows (in thousands):

 

 

March 31, 2014

 

 

December 31, 2013

 

Condensed Combined Balance Sheets

 

 

 

 

 

 

 

Land

$

1,269,063

 

 

$

1,275,232

 

Buildings

 

3,984,505

 

 

 

3,940,806

 

Fixtures and tenant improvements

 

277,942

 

 

 

266,851

 

 

 

5,531,510

 

 

 

5,482,889

 

Less: Accumulated depreciation

 

(872,565

) 

 

 

(839,867

) 

 

 

4,658,945

 

 

 

4,643,022

 

Land held for development and construction in progress

 

79,550

 

 

 

116,088

 

Real estate, net

 

4,738,495

 

 

 

4,759,110

 

Cash and restricted cash(A)

 

276,806

 

 

 

282,866

 

Receivables, net

 

102,830

 

 

 

101,003

 

Other assets

 

199,100

 

 

 

196,615

 

 

$

5,317,231

 

 

$

5,339,594

 

 

Mortgage debt

$

3,259,136

 

 

$

3,282,643

 

Notes and accrued interest payable to DDR(B)

 

133,534

 

 

 

127,679

 

Other liabilities

 

243,930

 

 

 

245,368

 

 

 

3,636,600

 

 

 

3,655,690

 

Redeemable preferred equity

 

72,096

 

 

 

71,771

 

Accumulated equity

 

1,608,535

 

 

 

1,612,133

 

 

$

5,317,231

 

 

$

5,339,594

 

Company’s share of Accumulated Equity

$

365,446

 

 

$

365,297

 

(A)

Includes $180.3 million and $191.9 million at March 31, 2014 and December 31, 2013, respectively, from Sonae Sierra Brazil BV SARL (“SSB”).  See further discussion of this investment below.

(B)

The Company has amounts receivable from several joint ventures aggregating $4.4 million and $2.7 million at March 31, 2014 and December 31, 2013, respectively, which are included in Investments in and Advances to Joint Ventures on the condensed consolidated balance sheets. The remaining receivables were fully reserved by the Company in prior years.

Condensed Combined Statements of Operations of Unconsolidated Joint Venture Investments

 

 

Three-Month Periods
Ended March 31,

 

 

2014

 

 

2013

 

Condensed Combined Statements of Operations

 

 

 

 

 

 

 

Revenues from operations

$

149,066

 

 

$

177,455

 

 

Operating expenses

 

56,554

 

 

 

60,806

 

Depreciation and amortization

 

45,716

 

 

 

62,218

 

Interest expense

 

54,149

 

 

 

57,885

 

 

 

156,419

 

 

 

180,909

 

Loss before tax expense and discontinued operations

 

(7,353

) 

 

 

(3,454

) 

Income tax expense (primarily SSB), net

 

(4,140

) 

 

 

(6,615

) 

Loss from continuing operations

 

(11,493

) 

 

 

(10,069

) 

Discontinued operations:

 

 

 

 

 

 

 

Loss from discontinued operations

 

(758

) 

 

 

(2,180

) 

Gain (loss) on disposition of real estate, net of tax

 

21,473

 

 

 

(5,537

) 

Income (loss) before gain on disposition of real estate, net

 

9,222

 

 

 

(17,786

) 

Gain on disposition of real estate, net

 

—

 

 

 

479

 

Net income (loss)

$

9,222

 

 

$

(17,307

) 

Non-controlling interests

 

(1,488

) 

 

 

(7,219

) 

Net income (loss) attributable to unconsolidated joint ventures

$

7,734

 

 

$

(24,526

) 

Company’s share of equity in net income of joint ventures

$

4,731

 

 

$

3,049

 

Amortization of basis differentials(A)

 

759

 

 

 

(95

) 

Equity in net income of joint ventures(B)

$

5,490

 

 

$

2,954

 

(A)

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

(B)

The Company is not recording income or loss from those investments in which its investment basis is zero, as the Company does not have the obligation or intent to fund any additional capital in the joint ventures.

Investments in and Advances to Joint Ventures

Investments in and Advances to Joint Ventures include the following items, which represent the difference between the Company’s investment basis and its share of all of the unconsolidated joint ventures’ underlying net assets (in millions):

 

 

March 31,
 2014

 

 

December 31, 
2013

 

Company’s share of accumulated equity

$

365.4

 

 

$

365.3

 

Redeemable preferred equity and other(A)

 

72.5

 

 

 

72.2

 

Basis differentials

 

1.9

 

 

 

10.6

 

Deferred development fees, net of portion related to the Company’s interest

 

(2.9

) 

 

 

(2.8

) 

Amounts payable to DDR

 

4.4

 

 

 

2.7

 

Investments in and Advances to Joint Ventures

$

441.3

 

 

$

448.0

 

(A)

Primarily relates to $72.1 million and $71.8 million in preferred equity investments in joint ventures with affiliates of The Blackstone Group L.P. at March 31, 2014 and December 31, 2013, respectively.

Service Fees and Income Earned by Company's Unconsolidated Joint Ventures

Service fees and income earned by the Company through management, financing, leasing and development activities performed related to all of the Company’s unconsolidated joint ventures are as follows (in millions):

 

 

Three-Month Periods
Ended March 31,

 

 

2014

 

  

2013

 

Management and other fees

$

6.1

  

  

$

7.4

  

Development fees and leasing commissions

 

2.0

  

  

 

2.9

  

Interest income

 

1.7

  

  

 

4.5