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Investments in and Advances to Unconsolidated Affiliates (Tables)

3 Months Ended

Mar. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

The Company’s investments in and advances to unconsolidated affiliates consist of the following (dollars in thousands):


		Ownership Interest	March 31,		December 31,
Portfolio	Property	March 31, 2023	2023		2022

Core:	Renaissance Portfolio	20%	$	28,975	$	28,755
	Gotham Plaza	49%		30,293		30,112
	Georgetown Portfolio (a)	50%		4,101		4,048
	1238 Wisconsin Avenue (a, b)	80%		16,223		14,502
				79,592		77,417

Mervyns II:	KLA/ABS (c)	36.7%		—		85,403

Fund IV:	Fund IV Other Portfolio	98.57%		7,344		7,914
	650 Bald Hill Road	90%		9,721		10,203
	Paramus Plaza	50%		807		936
				17,872		19,053

Fund V:	Family Center at Riverdale (d)	89.42%		4,574		4,995
	Tri-City Plaza	90%		7,665		8,422
	Frederick County Acquisitions	90%		11,510		12,240
	Wood Ridge Plaza	90%		12,295		12,751
	La Frontera Village	90%		20,078		20,803
	Shoppes at South Hills (e)	90%		13,189		44,677
	Mohawk Commons	90%		20,158		775
				89,469		104,663

Various:	Due from (to) Related Parties			277		305
	Other (f)			4,342		4,315
	Investments in and advances to unconsolidated affiliates		$	191,552	$	291,156

Core:	Crossroads (g)	49%	$	8,750	$	8,832
	840 N. Michigan Avenue (d, g)	88.43%	$	626	$	1,673
	Distributions in excess of income from, and investments in, unconsolidated affiliates		$	9,376	$	10,505

Represents a VIE for which the Company is not the primary beneficiary (Note 15).

Includes a $12.8 million construction commitment from the Company to the venture that holds its investment in 1238 Wisconsin. As of March 31, 2023 and December 31, 2022 the note receivable from a related party had a balance of $9.6 million and $7.5 million, net of CECL allowance of $0.1 million, and $0.1 million, respectively. The loan is collateralized by the venture members' equity interest in the entity that holds the 1238 Wisconsin development property, bears interest at Prime + 1.0% subject to a 4.5% floor, and matures on December 28, 2023. Interest is recognized over the life of the loan.

At December 31, 2022, Mervyns II had an effective indirect ownership of approximately 4.1 million shares (approximately 1% interest) through its Investment in Albertsons Companies Inc. ("Albertsons"), which is accounted for at fair value (Note 8). Mervyns II distributed the shares to its investors upon expiration of the lock-up agreement in January 2023, as further described below.

Represents a tenancy-in-common interest.

At December 31, 2022, includes a $31.7 million bridge loan from the Company to the venture that holds the property in its investment in Shoppes at South Hills. During the first quarter of 2023 the bridge loan was repaid, as further described below.

Includes cost-method investments in Storage Post, Fifth Wall, and other investments.

Distributions have exceeded the Company’s investment; however, the Company recognizes a liability balance as it may elect to contribute capital to the entity.

Schedule of Condensed Balance Sheet

The following combined and condensed Balance Sheets and Statements of Operations, in each period, summarize the financial information of the Company’s investments in unconsolidated affiliates that were held as of March 31, 2023, and accordingly exclude the results of any investments disposed of or consolidated prior to that date (in thousands):


	March 31,		December 31,
	2023		2022
Combined and Condensed Balance Sheets
Assets:
Rental property, net	$	706,731	$	650,997
Real estate under development		18,676		17,359
Other assets		140,052		127,070
Total assets	$	865,459	$	795,426
Liabilities and partners’ equity:
Mortgage notes payable	$	683,601	$	609,923
Other liabilities		100,757		96,532
Partners’ equity		81,101		88,971
Total liabilities and partners’ equity	$	865,459	$	795,426

Company's share of accumulated equity	$	122,188	$	131,878
Basis differential		52,566		52,813
Deferred fees, net of portion related to the Company's interest		2,803		5,937
Amounts receivable/payable by the Company		277		305
Investments in and advances to unconsolidated affiliates, net of Company's share of distributions in excess of income from and investments in unconsolidated affiliates		177,834		190,933
Investments carried at fair value or cost		4,342		89,718
Company's share of distributions in excess of income from and investments in unconsolidated affiliates		9,376		10,505
Investments in and advances to unconsolidated affiliates	$	191,552	$	291,156

Schedule of Condensed Income Statement


	Three Months Ended March 31,
	2023			2022
Combined and Condensed Statements of Operations
Total revenues	$	28,218		$	23,118
Operating and other expenses		(8,632	)		(7,258	)
Interest expense		(9,233	)		(4,739	)
Depreciation and amortization		(8,901	)		(5,911	)
Net income attributable to unconsolidated affiliates	$	1,452		$	5,210

Company’s share of equity in net income of unconsolidated affiliates	$	276		$	3,383
Basis differential amortization		(247	)		(253	)
Company’s equity in earnings of unconsolidated affiliates	$	29		$	3,130