Investments in Unconsolidated Real Estate Joint Ventures

3 Months Ended

Mar. 31, 2023

Investments In Unconsolidated Real Estate Joint Ventures [Abstract]

Investments in Unconsolidated Real Estate Joint Ventures

The equity method of accounting is used to account for each of the individual joint ventures. We have an ownership interest in the following unconsolidated real estate joint ventures:


As of March 31, 2023
Joint Venture	Outlet Center Location	Ownership %		Square Feet (in 000’s)	Carrying Value of Investment (in millions)		Total Joint Venture Debt, Net (in millions)(1)
Investments included in investments in unconsolidated joint ventures:
RioCan Canada	Various	50.0	%	665	$	73.4	—
					$	73.4
Investments included in other liabilities:
Charlotte(2)	Charlotte, NC	50.0	%	399	(19.0)		99.7
National Harbor(2)	National Harbor, MD	50.0	%	341	(13.6)		94.4
Galveston/Houston (2)	Texas City, TX	50.0	%	353	(15.9)		64.5
Columbus(2)	Columbus, OH	50.0	%	355	(2.9)		70.3
					$	(51.4)


As of December 31, 2022
Joint Venture	Outlet Center Location	Ownership %		Square Feet (in 000’s)	Carrying Value of Investment (in millions)		Total Joint Venture Debt, Net (in millions)(1)
Investments included in investments in unconsolidated joint ventures:
RioCan Canada	Various	50.0	%	665	73.8		—
					$	73.8
Investments included in other liabilities:
Charlotte(2)	Charlotte, NC	50.0	%	399	$	(18.8)	$	99.7
National Harbor(2)	National Harbor, MD	50.0	%	341	(12.8)		94.6
Galveston/Houston(2)	Texas City, TX	50.0	%	353	(15.5)		64.5
Columbus(2)	Columbus, OH	50.0	%	355	(2.4)		70.3
					$	(49.5)

(1)Net of debt origination costs of $1.4 million as of March 31, 2023 and $1.5 million as of December 31, 2022.

(2)The negative carrying value is due to distributions exceeding contributions and increases or decreases from our equity in earnings of the joint venture.

Fees we received for various services provided to our unconsolidated joint ventures were recognized in management, leasing and other services as follows (in thousands):


	Three months ended
	March 31,
	2023		2022
Fee:
Management and marketing	$	545	$	536
Leasing and other fees	45		35
Expense reimbursements from unconsolidated joint ventures	1,077		956
Total Fees	$	1,667	$	1,527

Our investments in real estate joint ventures are reduced by the percentage of the profits earned for leasing and development services associated with our ownership interest in each joint venture. Our carrying value of investments in unconsolidated joint ventures differs from our share of the assets reported in the “Condensed Combined Balance Sheets - Unconsolidated Joint Ventures” shown below due to adjustments to the book basis, including intercompany profits on sales of services that are capitalized by the unconsolidated joint ventures. The differences in basis (totaling $3.1 million and $3.2 million as of March 31, 2023 and December 31, 2022, respectively) are amortized over the various useful lives of the related assets.

Condensed combined summary financial information of unconsolidated joint ventures accounted for using the equity method is as follows (in thousands):


Condensed Combined Balance Sheets - Unconsolidated Joint Ventures	March 31, 2023		December 31, 2022
Assets
Land	$	81,801	$	81,716
Buildings, improvements and fixtures	459,236		458,190
Construction in progress	534		681
	541,571		540,587
Accumulated depreciation	(187,719)		(182,731)
Total rental property, net	353,852		357,856
Cash and cash equivalents	11,847		17,372
Deferred lease costs and other intangibles, net	2,686		2,895
Prepaids and other assets	8,599		10,612
Total assets	$	376,984	$	388,735
Liabilities and Owners’ Equity
Mortgages payable, net	$	328,838	$	329,009
Accounts payable and other liabilities	11,683		15,374
Total liabilities	340,521		344,383
Owners’ equity	36,463		44,352
Total liabilities and owners’ equity	$	376,984	$	388,735


	Three months ended
Condensed Combined Statements of Operations - Unconsolidated Joint Ventures	March 31,
	2023		2022
Revenues	$	22,128	$	21,841
Expenses:
Property operating	8,472		8,303
General and administrative	142		92



Depreciation and amortization	5,239		5,482
Total expenses	13,853		13,877
Other income (expense):
Interest expense	(4,400)		(2,916)

Other income	139		3
Total other expense	(4,261)		(2,913)
Net income	$	4,014	$	5,051
The Company and Operating Partnership’s share of:
Net income	$	1,935	$	2,513
Depreciation and amortization (real estate related)	$	2,670	$	2,754