Change in Noncontrolling Interests |
The following table summarizes the change in the noncontrolling interests for the year ended December 31, 2017 and 2016 (dollars in thousands): | | | | | | | | | | | | | | Noncontrolling Interests in Operating Partnership (a) | | Noncontrolling Interests in Partially-Owned Affiliates (b) | | Total | | | | | | | Balance at January 1, 2017 | $ | 95,422 |
| | $ | 494,126 |
| | $ | 589,548 |
| Distributions declared of $1.05 per Common OP Unit | (6,453 | ) | | — |
| | (6,453 | ) | Net income (loss) for the period January 1 through December 31, 2017 | 4,159 |
| | (1,321 | ) | | 2,838 |
| Conversion of 5,000 Preferred and 81,453 Common OP Units to Common Shares by limited partners of the Operating Partnership | (1,541 | ) | | — |
| | (1,541 | ) | Other comprehensive income - unrealized loss on valuation of swap agreements | 85 |
| | (232 | ) | | (147 | ) | Reclassification of realized interest expense on swap agreements | 141 |
| | 545 |
| | 686 |
| Noncontrolling interest contributions | — |
| | 85,206 |
| | 85,206 |
| Noncontrolling interest distributions | — |
| | (32,805 | ) | | (32,805 | ) | Employee Long-term Incentive Plan Unit Awards | 10,457 |
| | — |
| | 10,457 |
| Rebalancing adjustment (d) | 651 |
| | — |
| | 651 |
| Balance at December 31, 2017 | $ | 102,921 |
| | $ | 545,519 |
| | $ | 648,440 |
| | | | | | | Balance at January 1, 2016 | $ | 96,340 |
| | $ | 324,526 |
| | $ | 420,866 |
| Distributions declared of $1.16 per Common OP Unit | (6,753 | ) | | — |
| | (6,753 | ) | Net income for the period January 1 through December 31, 2016 | 5,002 |
| | 56,814 |
| | 61,816 |
| Conversion of 351,250 Common OP Units to Common Shares by limited partners of the Operating Partnership | (7,892 | ) | | — |
| | (7,892 | ) | Issuance of Common and Preferred OP Units to acquire real estate | 31,429 |
| | — |
| | 31,429 |
| Acquisition of noncontrolling interests (c) | — |
| | (25,925 | ) | | (25,925 | ) | Other comprehensive income - unrealized loss on valuation of swap agreements | (43 | ) | | (289 | ) | | (332 | ) | Change in control of previously unconsolidated investment | — |
| | (75,713 | ) | | (75,713 | ) | Reclassification of realized interest expense on swap agreements | 223 |
| | 374 |
| | 597 |
| Noncontrolling interest contributions | — |
| | 295,108 |
| | 295,108 |
| Noncontrolling interest distributions | — |
| | (80,769 | ) | | (80,769 | ) | Employee Long-term Incentive Plan Unit Awards | 12,768 |
| | — |
| | 12,768 |
| Rebalancing adjustment (d) | (35,652 | ) | | — |
| | (35,652 | ) | Balance at December 31, 2016 | $ | 95,422 |
| | $ | 494,126 |
| | $ | 589,548 |
|
__________
| | (a) | Noncontrolling interests in the Operating Partnership are comprised of (i) the limited partners’ 3,328,873 and 3,308,875 Common OP Units at December 31, 2017 and 2016, respectively; (ii) 188 Series A Preferred OP Units at December 31, 2017 and 2016; (iii) 136,593 and 141,593 Series C Preferred OP Units at December 31, 2017 and 2016, respectively; and (iv) 2,274,147 and 1,997,099 LTIP units as of December 31, 2017 and 2016, respectively, as discussed in Share Incentive Plan (Note 13). Distributions declared for Preferred OP Units are reflected in net income in the table above. |
| | (b) | Noncontrolling interests in partially-owned affiliates comprise third-party interests in Funds II, III, IV and V, and Mervyns I and II, and six other subsidiaries. |
| | (c) | During the first quarter of 2016, the Company acquired an additional 8.3% interest in Fund II from a limited partner for $18.4 million, giving the Company an aggregate 28.33% interest. Amount in the table above represents the book value of this transaction. |
| | (d) | Adjustment reflects the difference between the fair value of the consideration received or paid and the book value of the Common Shares, Common OP Units, Preferred OP Units, and LTIP Units involving changes in ownership (the “Rebalancing”). |
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