The Company’s equity method joint ventures, which are included in Investments in and Advances to Joint Ventures in the Company’s consolidated balance sheet at December 31, 2019, are as follows:

Unconsolidated Real Estate Ventures	Partner	Effective Ownership Percentage	Operating Properties
DDRTC Core Retail Fund, LLC^(A)	TIAA – CREF	15.0%	21
DDRM Properties	Madison International Realty	20.0	35
BRE DDR Retail Holdings III	Blackstone Real Estate Partners	5.0	13
BRE DDR Retail Holdings IV	Blackstone Real Estate Partners	5.0	5
Dividend Trust Portfolio JV LP	Chinese Institutional Investors	20.0	10
DDR – SAU Retail Fund, LLC	State of Utah	20.0	12
Other Joint Venture Interests	Various	20.0–79.45	4

Condensed combined financial information of the Company’s unconsolidated joint venture investments is as follows (in thousands):

	December 31,
	2019			2018
Condensed Combined Balance Sheets
Land	$	895,427		$	1,004,289
Buildings		2,583,053			2,804,027
Fixtures and tenant improvements		233,303			221,412
		3,711,783			4,029,728
Less: Accumulated depreciation		(949,879	)		(935,921	)
		2,761,904			3,093,807
Construction in progress and land		58,855			56,498
Real estate, net		2,820,759			3,150,305
Cash and restricted cash		109,260			94,111
Receivables, net		37,191			44,702
Other assets, net		147,129			186,693
	$	3,114,339		$	3,475,811

Mortgage debt	$	1,640,146		$	2,212,503
Notes and accrued interest payable to the Company		4,975			5,182
Other liabilities		142,754			161,372
		1,787,875			2,379,057
Redeemable preferred equity – SITE Centers^(A)		217,871			274,493
Accumulated equity		1,108,593			822,261
	$	3,114,339		$	3,475,811

Company's share of accumulated equity	$	186,247		$	145,786
Redeemable preferred equity, net^(B)		112,589			189,891
Basis differentials		(6,864	)		(8,536	)
Deferred development fees, net of portion related to the Company's interest		(2,452	)		(2,700	)
Amounts payable to the Company		4,975			5,182
Investments in and Advances to Joint Ventures, net	$	294,495		$	329,623

	For the Year Ended December 31
	2019		2018			2017
Condensed Combined Statements of Operations
Revenues from operations^(A)	$	428,281	$	427,467		$	502,506
Expenses from operations:
Operating expenses		118,412		125,353			145,855
Impairment charges^(B)		13,807		177,522			90,597
Depreciation and amortization		149,749		145,849			180,337
Interest expense		93,887		96,312			107,330
Preferred share expense		21,832		24,875			32,251
Other expense, net		20,563		24,891			25,986
		418,250		594,802			582,356
Income (loss) before gain on disposition of real estate		10,031		(167,335	)		(79,850	)
Gain on disposition of real estate, net		67,011		93,753			101,806
Net income (loss) attributable to unconsolidated joint ventures	$	77,042	$	(73,582	)	$	21,956
Company's share of equity in net income (loss) of joint ventures	$	10,743	$	(2,419	)	$	3,516
Basis differential adjustments^(C)		776		11,784			5,321
Equity in net income of joint ventures	$	11,519	$	9,365		$	8,837

Revenues earned by the Company related to all of the Company’s unconsolidated joint ventures and interest income on its preferred interests in the BRE DDR Joint Ventures (as defined below) are as follows (in millions):

	For the Year Ended December 31,
	2019		2018		2017
Revenue from contracts:
Asset and property management fees	$	19.7	$	18.8	$	21.4
Development fees, leasing commissions and other		5.2		6.9		9.1
		24.9		25.7		30.5
Other:
Interest income		16.7		19.0		25.9
Other		3.2		2.6		2.8
		19.9		21.6		28.7
	$	44.8	$	47.3	$	59.2

The Company’s joint venture agreements generally include provisions whereby each partner has the right to trigger a purchase or sale of its interest in the joint venture or to initiate a purchase or sale of the properties after a certain number of years or if either party is in default of the joint venture agreements. The Company is not obligated to purchase the interests of its outside joint venture partners under these provisions.

The Company’s joint ventures sold six, 40 and 15 shopping centers and land for an aggregate sales price of $356.3 million, $786.5 million and $545.6 million, respectively, of which the Company’s share of the gain on sale was $4.2 million, $13.7 million and $5.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. Included in the 2018 shopping center dispositions were three assets sold by two of the Company’s unconsolidated joint ventures to the Company for $35.1 million (Note 5).

The Company’s two unconsolidated investments with The Blackstone Group L.P. (“Blackstone”), BRE DDR Retail Holdings III (“BRE DDR III”) and BRE DDR Retail Holdings IV (“BRE DDR IV” and, together with BRE DDR III, the “BRE DDR Joint Ventures”), have substantially similar terms.

An affiliate of Blackstone is the managing member and effectively owns 95% of the common equity of each of the two BRE DDR Joint Ventures, and consolidated affiliates of SITE Centers effectively own the remaining 5%. The Company provides leasing and property management services to all of the joint venture properties. The Company cannot be removed as the property and leasing manager until the preferred equity, as discussed below, is redeemed in full (except for certain specified events).

The Company’s preferred interests are entitled to certain preferential cumulative distributions payable out of operating cash flows and certain capital proceeds pursuant to the terms and conditions of the preferred investments. The preferred distributions are recognized as Interest Income within the Company’s consolidated statements of operations and are classified as a note receivable in Investments in and Advances to Joint Ventures on the Company’s consolidated balance sheets. The preferred investments have an annual distribution rate of 8.5% including any deferred and unpaid preferred distributions. Blackstone has the right to defer up to 2.0% of the 8.5% preferred fixed distributions as a payment in kind (“PIK”) distribution. Blackstone has made this PIK deferral election since the formation of both joint ventures. The cash portion of the preferred fixed distributions is generally payable first out of operating cash flows and is current for both BRE DDR Joint Ventures. The Company has no expectation that the cash portion of the preferred fixed distribution will become impaired. As a result of the valuation allowances recorded, the Company no longer recognizes as interest income the 2.0% PIK. Although Blackstone has the right to change its payment election, the Company expects future preferred distributions to continue to include the PIK component. The recognition of the PIK interest income will be reevaluated based upon any future adjustments to the aggregate valuation allowance, as appropriate.

The unpaid preferred investment (and any accrued distributions) is payable (1) at Blackstone’s option, in whole or in part, subject to early redemption premiums in certain circumstances during the first three years of the joint ventures; (2) at varying equity sharing levels (determined according to the joint venture’s debt service coverage ratio) with the common members, upon a sale of properties over a certain threshold; (3) at SITE Centers’ option after seven years (2021 for BRE DDR III and 2022 for BRE DDR IV) and (4) upon the incurrence of additional indebtedness by the joint ventures in excess of a certain threshold. Specifically, for BRE DDR III, based upon the cumulative asset sales through December 31, 2019, and the joint venture’s debt service coverage ratio at December 31, 2019, future net asset sale proceeds are expected to be allocated 52.9% to the preferred member and 47.1% to the common equity. For BRE DDR IV, based on the joint venture’s debt service coverage ratio as of December 31, 2019, 100% of the future asset sale proceeds generated are expected to be available to repay the preferred member.

As of December 31, 2019, the Company has a valuation allowance recorded on each of the BRE DDR III and BRE DDR IV preferred investment interests on a net basis, as described below. An aggregate valuation allowance adjustment was recorded of $15.5 million, $11.4 million and $61.0 million, for the years ended December 31, 2019, 2018 and 2017, respectively. Adjustments to the valuation allowance are recorded as Reserve of Preferred Equity Interests on the Company’s consolidated statements of operations.

The Company reassesses the aggregate valuation allowance quarterly based upon actual timing and values of recent property sales as well as current market assumptions. The valuation techniques used to value the collateral include discounted cash flow analysis on the expected cash flows of each asset, as well as the income capitalization approach considering prevailing market capitalization rates, analysis of recent comparable sales transactions, actual sales negotiations and bona fide purchase offers received from third parties. Additionally, the managing member of the two joint ventures exercises significant influence over the timing of asset sales. As a result, the investments were impaired to reflect the risk that the securities are not repaid in full in advance of the Company’s redemption rights in 2021 and 2022. The Company will continue to monitor the investments and related valuation allowance, which could be increased or decreased in future periods, as appropriate.

As discussed above, the preferred 8.5% distribution rate has two components, a cash interest rate of 6.5% and an accrued PIK of 2.0%. As a result of the valuation allowances recorded, the Company no longer recognizes as interest income the 2.0% PIK. (The accrued PIK aggregated $17.3 million and $12.2 million at December 31, 2019 and 2018, respectively). The recognition of the PIK interest income will be re-evaluated based upon any future adjustments to the aggregate valuation allowance, as appropriate.

The preferred investments are summarized as follows (in millions, except properties owned):

		Preferred Investment (Principal)
	Redemption Date	Initial		December 31, 2019		Valuation Allowance			Net of Reserve		Properties Owned at December 31, 2019
BRE DDR III	2021	$	300.0	$	132.4	$	(78.2	)	$	54.2		13
BRE DDR IV	2022		82.6		64.0		(9.7	)		54.3		5
		$	382.6	$	196.4	$	(87.9	)	$	108.5