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Investments in and Advances to Joint Ventures
 9 Months Ended
Sep. 30, 2021
Equity Method Investments And Joint Ventures [Abstract]  
Investments in and Advances to Joint Ventures

3.

Investments in and Advances to Joint Ventures

At September 30, 2021 and December 31, 2020, the Company had ownership interests in various unconsolidated joint ventures that had investments in 55 and 59 shopping center properties, respectively.  Condensed combined financial information of the Company’s unconsolidated joint venture investments is as follows (in thousands):

 

September 30, 2021

 

 

December 31, 2020

 

Condensed Combined Balance Sheets

 

 

 

 

 

 

 

Land

$

428,167

 

 

$

441,412

 

Buildings

 

1,212,771

 

 

 

1,258,879

 

Fixtures and tenant improvements

 

138,876

 

 

 

137,663

 

 

 

1,779,814

 

 

 

1,837,954

 

Less: Accumulated depreciation

 

(501,506

)

 

 

(492,288

)

 

 

1,278,308

 

 

 

1,345,666

 

Construction in progress and land

 

8,444

 

 

 

58,201

 

Real estate, net

 

1,286,752

 

 

 

1,403,867

 

Cash and restricted cash

 

61,797

 

 

 

35,212

 

Receivables, net

 

19,513

 

 

 

25,719

 

Other assets, net

 

53,415

 

 

 

61,381

 

 

$

1,421,477

 

 

$

1,526,179

 

 

 

 

 

 

 

 

 

Mortgage debt

$

996,968

 

 

$

1,029,579

 

Notes and accrued interest payable to the Company

 

3,789

 

 

 

4,375

 

Other liabilities

 

59,890

 

 

 

57,349

 

 

 

1,060,647

 

 

 

1,091,303

 

Accumulated equity

 

360,830

 

 

 

434,876

 

 

$

1,421,477

 

 

$

1,526,179

 

 

 

 

 

 

 

 

 

Company's share of accumulated equity

$

64,778

 

 

$

72,555

 

Basis differentials

 

5,273

 

 

 

1,644

 

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

 

(1,156

)

 

 

(1,277

)

Amounts payable to the Company

 

3,789

 

 

 

4,375

 

Investments in and Advances to Joint Ventures, net

$

72,684

 

 

$

77,297

 

 

 

Three Months

 

 

Nine Months

 

 

Ended September 30,

 

 

Ended September 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Condensed Combined Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from operations

$

48,666

 

 

$

60,019

 

 

$

150,623

 

 

$

198,906

 

Expenses from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

12,931

 

 

 

18,613

 

 

 

41,217

 

 

 

61,661

 

Impairment charges

 

—

 

 

 

—

 

 

 

—

 

 

 

33,240

 

Depreciation and amortization

 

16,605

 

 

 

23,901

 

 

 

50,309

 

 

 

77,580

 

Interest expense

 

10,980

 

 

 

14,700

 

 

 

32,898

 

 

 

47,555

 

Preferred share expense

 

—

 

 

 

4,626

 

 

 

—

 

 

 

13,710

 

Other expense, net

 

2,832

 

 

 

3,246

 

 

 

8,806

 

 

 

10,844

 

 

 

43,348

 

 

 

65,086

 

 

 

133,230

 

 

 

244,590

 

Income (loss) before gain on disposition of real estate

 

5,318

 

 

 

(5,067

)

 

 

17,393

 

 

 

(45,684

)

(Loss) gain on disposition of real estate, net

 

(455

)

 

 

319

 

 

 

36,132

 

 

 

9,229

 

Net income (loss) attributable to unconsolidated joint ventures

$

4,863

 

 

$

(4,748

)

 

$

53,525

 

 

$

(36,455

)

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

$

1,760

 

 

$

134

 

 

$

9,897

 

 

$

571

 

Basis differential adjustments(A)

 

64

 

 

 

116

 

 

 

1,162

 

 

 

337

 

Equity in net income of joint ventures

$

1,824

 

 

$

250

 

 

$

11,059

 

 

$

908

 

(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 and interest income are as follows (in millions):

 

 

Three Months

 

 

Nine Months

 

 

Ended September 30,

 

 

Ended September 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue from contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset and property management fees

$

2.8

 

 

$

3.0

 

 

$

8.0

 

 

$

10.1

 

Development fees, leasing commissions and other

 

0.6

 

 

 

0.6

 

 

 

1.5

 

 

 

3.6

 

 

 

3.4

 

 

 

3.6

 

 

 

9.5

 

 

 

13.7

 

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income(A)

 

—

 

 

 

3.5

 

 

 

—

 

 

 

10.5

 

Other

 

0.4

 

 

 

0.5

 

 

 

1.2

 

 

 

1.7

 

 

 

0.4

 

 

 

4.0

 

 

 

1.2

 

 

 

12.2

 

 

$

3.8

 

 

$

7.6

 

 

$

10.7

 

 

$

25.9

 

 

(A)

Interest income recorded in 2020 related to preferred equity interests in two joint ventures which were transferred or redeemed in the fourth quarter of 2020.  

Disposition of Shopping Centers and Undeveloped Land

In February 2021, one of the Company’s unconsolidated joint ventures sold its sole asset, which was a parcel of undeveloped land (approximating 70 acres) in Richmond Hill, Ontario.  The Company’s share of net proceeds totaled $22.1 million, after accounting for customary closing costs and foreign currency translation.  The net proceeds include $6.1 million that are held in escrow of which $4.1 million is expected to be released to the Company pending receipt of certain tax clearance certificates from the Canadian taxing authorities, and the remaining $2.0 million is considered contingent and should be released upon final dissolution of the partnership.  The Company recorded an aggregate gain on the transaction of $16.8 million which included its $2.8 million share of the gain reported by the joint venture, as well as $14.0 million related to the promoted interest on the disposition of the investment and write-off of the accumulated foreign currency translation.

From January 1, 2021 to September 30, 2021, four shopping centers were sold by unconsolidated joint ventures for $53.4 million. The Company’s share of the gain on sale was $2.4 million.