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Investments in and Advances to Unconsolidated Affiliates (Tables)

12 Months Ended

Dec. 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	December 31,		December 31,
Portfolio	Property	December 31, 2023	2023		2022

Core:	Renaissance Portfolio	20%	$	30,745	$	28,755
	Gotham Plaza	49%		30,772		30,112
	Georgetown Portfolio (a)	50%		4,230		4,048
	1238 Wisconsin Avenue (a, b)	80%		19,719		14,502
	840 N. Michigan Avenue (d)	91.85%		15,761		—
				101,227		77,417

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

Fund IV:	Fund IV Other Portfolio	90%		5,221		7,914
	650 Bald Hill Road	90%		9,486		10,203
	Paramus Plaza	50%		70		936
				14,777		19,053

Fund V:	Family Center at Riverdale (d)	89.42%		2,552		4,995
	Tri-City Plaza	90%		6,452		8,422
	Frederick County Acquisitions	90%		11,345		12,240
	Wood Ridge Plaza	90%		10,313		12,751
	La Frontera Village	90%		17,483		20,803
	Shoppes at South Hills (e)	90%		11,707		44,677
	Mohawk Commons	90%		16,434		775
				76,286		104,663

Various:	Due from (to) Related Parties			396		305
	Other (f)			4,554		4,315
	Investments in and advances to unconsolidated affiliates		$	197,240	$	291,156

Core:	Crossroads (g)	49%	$	7,982	$	8,832
	840 N. Michigan Avenue (d, g)	91.85%		—		1,673
	Distributions in excess of income from, and investments in, unconsolidated affiliates		$	7,982	$	10,505

Represents a VIE for which the Company is not the primary beneficiary (Note 16).

Includes the amounts advanced against a $12.8 million construction commitment from the Company to the venture that holds an investment in 1238 Wisconsin. As of December 31, 2023 and 2022 the note receivable from a related party had a balance of $12.8 million and $7.5 million, respectively, net of an allowance for CECL 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, 2024. The Company recognized Interest income of $0.2 million for the year ended December 31, 2023, related to this note receivable. The note originated in 2022 and the Company recognized less than $0.1 million of Interest income for the year ended December 31, 2022.

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 its shares to its investors upon expiration of the lock-up agreement in January 2023, as further described below.

Represents a tenancy-in-common interest.

Includes a $31.7 million bridge loan at December 31, 2022, 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 investment in 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 Combined and Condensed Balance Sheet

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


	December 31,		December 31,
	2023		2022
Combined and Condensed Balance Sheets
Assets:
Rental property, net	$	723,411	$	650,997
Real estate under development		—		17,359
Other assets		125,699		127,070
Total assets	$	849,110	$	795,426
Liabilities and partners’ equity:
Mortgage notes payable	$	662,552	$	609,923
Other liabilities		100,270		96,532
Partners’ equity		86,288		88,971
Total liabilities and partners’ equity	$	849,110	$	795,426

Company's share of accumulated equity	$	128,690	$	131,878
Basis differential		51,824		52,813
Deferred fees, net of portion related to the Company's interest		3,794		5,937
Amounts receivable to/payable by the Company		396		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		184,704		190,933
Investments carried at fair value or cost		4,554		89,718
Company's share of distributions in excess of income from and investments in unconsolidated affiliates		7,982		10,505
Investments in and advances to unconsolidated affiliates	$	197,240	$	291,156

Schedule of Combined and Condensed Income Statement


	Year Ended December 31,
	2023			2022			2021
Combined and Condensed Statements of Operations
Total revenues	$	108,425		$	96,080		$	80,823
Operating and other expenses		(35,488	)		(29,858	)		(28,572	)
Interest expense		(40,864	)		(26,807	)		(21,228	)
Depreciation and amortization		(42,212	)		(34,596	)		(30,518	)
Gain (loss) on extinguishment of debt (a)		368			(7	)		(35	)
Impairment of Investment (b)		—			(57,423	)		—
Gain on disposition of properties (c)		—			12,983			3,206
Net (losses) earnings attributable to unconsolidated affiliates	$	(9,771	)	$	(39,628	)	$	3,676

Company’s share of equity in net losses of unconsolidated affiliates	$	(6,688	)	$	(31,907	)	$	6,023
Basis differential amortization		(989	)		(1,000	)		(693	)
Company’s equity in (losses) earnings of unconsolidated affiliates	$	(7,677	)	$	(32,907	)	$	5,330

Includes the gain on debt extinguishment related to the restructuring at 840 N. Michigan Avenue for the year ended December 31, 2023.

Includes the impairment charge related to 840 N. Michigan Avenue for the year ended December 31, 2022.

Includes the gain on the sale of Promenade at Manassas on October 13, 2022, and two land parcels by the Family Center at Riverdale on January 4, 2021.