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Investments in and Advances to Joint Ventures (Tables)
 6 Months Ended
Jun. 30, 2014
Condensed Combined Financial Information of Company's Unconsolidated Joint Venture Investments

At June 30, 2014 and December 31, 2013, the Company had ownership interests in various unconsolidated joint ventures that had an investment in 154 and 170 shopping center properties, respectively. Condensed combined financial information of the Company’s unconsolidated joint venture investments is as follows (in thousands):

 

 

June 30, 2014

 

 

December 31, 2013

 

Condensed Combined Balance Sheets

 

 

 

 

 

 

 

Land

$

1,158,271

 

 

$

1,275,232

 

Buildings

 

3,166,873

 

 

 

3,940,806

 

Fixtures and tenant improvements

 

171,229

 

 

 

266,851

 

 

 

4,496,373

 

 

 

5,482,889

 

Less:  Accumulated depreciation

 

(803,548

)

 

 

(839,867

)

 

 

3,692,825

 

 

 

4,643,022

 

Land held for development and construction in progress

 

60,621

 

 

 

116,088

 

Real estate, net

 

3,753,446

 

 

 

4,759,110

 

Cash and restricted cash

 

93,386

 

 

 

282,866

 

Receivables, net

 

63,493

 

 

 

101,003

 

Other assets

 

145,677

 

 

 

196,615

 

 

$

4,056,002

 

 

$

5,339,594

 

 

 

 

 

 

 

 

 

Mortgage debt

$

2,834,997

 

 

$

3,282,643

 

Notes and accrued interest payable to DDR(A)

 

138,256

 

 

 

127,679

 

Other liabilities

 

158,833

 

 

 

245,368

 

 

 

3,132,086

 

 

 

3,655,690

 

Redeemable preferred equity

 

72,470

 

 

 

71,771

 

Accumulated equity

 

851,446

 

 

 

1,612,133

 

 

$

4,056,002

 

 

$

5,339,594

 

Company's share of Accumulated Equity

$

121,531

 

 

$

365,297

 

 

(A)

The Company had amounts receivable from several joint ventures aggregating $4.7 million and $2.7 million at June 30, 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 June 30,

 

 

Six-Month Periods

Ended June 30,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Condensed Combined Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from operations

$

124,289

 

 

$

175,029

 

 

$

272,551

 

 

$

351,798

 

Operating expenses

 

44,547

 

 

 

61,496

 

 

 

97,762

 

 

 

121,031

 

Impairment charges

 

600

 

 

 

38,323

 

 

 

600

 

 

 

38,323

 

Depreciation and amortization

 

38,652

 

 

 

55,766

 

 

 

84,063

 

 

 

116,832

 

Interest expense

 

45,753

 

 

 

55,610

 

 

 

99,748

 

 

 

113,278

 

Other (income) expense, net

 

(235

)

 

 

(620

)

 

 

2,837

 

 

 

313

 

 

 

129,317

 

 

 

210,575

 

 

 

285,010

 

 

 

389,777

 

Loss before tax expense and discontinued operations

 

(5,028

)

 

 

(35,546

)

 

 

(12,459

)

 

 

(37,979

)

Income tax expense (primarily SSB), net

 

(2,425

)

 

 

(7,238

)

 

 

(6,565

)

 

 

(13,853

)

Loss from continuing operations

 

(7,453

)

 

 

(42,784

)

 

 

(19,024

)

 

 

(51,832

)

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations

 

(373

)

 

 

(8,410

)

 

 

(1,053

)

 

 

(11,611

)

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

 

2,038

 

 

 

(369

)

 

 

23,511

 

 

 

(5,906

)

(Loss) income before gain on disposition of real estate, net

 

(5,788

)

 

 

(51,563

)

 

 

3,434

 

 

 

(69,349

)

Gain on disposition of real estate, net

 

—

 

 

 

164

 

 

 

—

 

 

 

643

 

Net (loss) income

$

(5,788

)

 

$

(51,399

)

 

$

3,434

 

 

$

(68,706

)

Non-controlling interests

 

(535

)

 

 

(6,695

)

 

 

(2,023

)

 

 

(13,914

)

Net (loss) income attributable to unconsolidated joint ventures

$

(6,323

)

 

$

(58,094

)

 

$

1,411

 

 

$

(82,620

)

Company's share of equity in net income (loss) of joint

   ventures

$

1,436

 

 

$

(1,522

)

 

$

6,167

 

 

$

1,528

 

Amortization of basis differentials(A)

 

(305

)

 

 

331

 

 

 

454

 

 

 

235

 

Equity in net income (loss) of joint ventures(B)

$

1,131

 

 

$

(1,191

)

 

$

6,621

 

 

$

1,763

 

 

(A)

Related to the amortization of basis differentials, the recognition of deferred gains and differences in gain (loss) on sale of certain assets due to the basis differentials and other than temporary impairment charges.

(A)

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):

 

 

June 30, 2014

 

 

December 31, 2013

 

Company's share of accumulated equity

$

121.5

 

 

$

365.3

 

Redeemable preferred equity and other(A)

 

72.9

 

 

 

72.2

 

Basis differentials

 

3.1

 

 

 

10.6

 

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

 

(2.8

)

 

 

(2.8

)

Amounts payable to DDR

 

4.7

 

 

 

2.7

 

Investments in and Advances to Joint Ventures

$

199.4

 

 

$

448.0

 

(A)

Primarily related to $72.5 million and $71.8 million in preferred equity investments in joint ventures with affiliates of The Blackstone Group L.P. at June 30, 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 June 30, 

  

Six-Month Periods
Ended June 30,

 

2014

 

  

2013

 

  

2014

 

  

2013

 

Management and other fees

$

6.2

  

  

$

7.8

  

  

$

12.3

  

  

$

15.3

  

Development fees and leasing commissions

 

1.5

  

  

 

2.3

  

  

 

3.5

  

  

 

5.2

  

Interest income

 

1.7

  

  

 

4.6

  

  

 

3.4

  

  

 

9.1