Investments in Real Estate Partnerships (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments

The Company invests in real estate partnerships, which consist of the following:

	December 31, 2019
(in thousands)	Regency's Ownership	Number of Properties		Total Investment		Total Assets of the Partnership		The Company's Share of Net Income of the Partnership			Net Income of the Partnership
GRI - Regency, LLC (GRIR)	40.00%		68	$	187,597		1,612,459		43,536			96,721
New York Common Retirement Fund (NYC) (1)	30.00%		6		41,422		260,512		(9,967	)		(5,832	)
Columbia Regency Retail Partners, LLC (Columbia I)	20.00%		7		9,201		139,253		1,626			8,406
Columbia Regency Partners II, LLC (Columbia II)	20.00%		13		39,453		385,960		1,748			8,742
Cameron Village, LLC (Cameron)	30.00%		1		10,641		96,101		1,062			3,572
RegCal, LLC (RegCal)	25.00%		6		26,417		109,226		3,796			16,276
US Regency Retail I, LLC (USAA) (2)	20.01%		7		—		87,231		1,028			5,137
Other investments in real estate partnerships (3)	18.38% - 50.00%		8		154,791		468,142		18,127			38,182
Total investments in real estate partnerships			116	$	469,522		3,158,884		60,956			171,204

⁽¹⁾ During the third quarter of 2019, a $10.9 million impairment of real estate was recognized within the NYC partnership from changes in the expected hold periods of various properties.

⁽²⁾ The USAA partnership has distributed proceeds from debt refinancing and real estate sales in excess of Regency’s carrying value of its investment resulting in a negative investment balance of $3.9 million, which is recorded within Accounts Payable and other liabilities in the Consolidated Balance Sheets.

⁽³⁾ Includes our investment in the Town and Country shopping center, which began with an initial 9.38% ownership percent in 2018, with an additional 9.0% interest acquired during 2019.  In January 2020, we purchased our remaining 16.62% interest, bringing our total ownership interest to 35%.

	December 31, 2018
(in thousands)	Regency's Ownership	Number of Properties		Total Investment		Total Assets of the Partnership		The Company's Share of Net Income of the Partnership		Net Income of the Partnership
GRI - Regency, LLC (GRIR)	40.00%		70	$	189,381		1,646,448		29,614		74,139
New York Common Retirement Fund (NYC)	30.00%		6		54,250		277,626		490		2,239
Columbia Regency Retail Partners, LLC (Columbia I)	20.00%		7		13,625		141,807		1,311		6,650
Columbia Regency Partners II, LLC (Columbia II)	20.00%		13		38,110		377,121		4,673		23,367
Cameron Village, LLC (Cameron)	30.00%		1		11,169		98,633		943		3,177
RegCal, LLC (RegCal)	25.00%		7		31,235		139,844		1,542		6,167
US Regency Retail I, LLC (USAA) (1)	20.01%		7		—		89,524		937		4,685
Other investments in real estate partnerships	9.38% - 50.00%		9		125,231		456,828		3,464		8,661
Total investments in real estate partnerships			120	$	463,001		3,227,831		42,974		129,085

^{(1) The USAA partnership has distributed proceeds from debt refinancing and real estate sales in excess of Regency’s carrying value of its investment resulting in a negative investment balance, which is recorded within Accounts Payable and other liabilities in the Consolidated Balance Sheets.}

The summarized balance sheet information for the investments in real estate partnerships, on a combined basis, is as follows:

	December 31,
(in thousands)	2019		2018
Investments in real estate, net	$	2,917,415		3,001,481
Acquired lease intangible assets, net		40,549		57,053
Other assets		200,920		169,297
Total assets	$	3,158,884		3,227,831
Notes payable	$	1,577,467		1,609,647
Acquired lease intangible liabilities, net		44,387		49,501
Other liabilities		96,388		90,577
Capital - Regency		508,875		498,852
Capital - Third parties		931,767		979,254
Total liabilities and capital	$	3,158,884		3,227,831

The following table reconciles the Company's capital recorded by the unconsolidated partnerships to the Company's investments in real estate partnerships reported in the accompanying Consolidated Balance Sheet:

	December 31,
(in thousands)	2019			2018
Capital - Regency	$	508,875			498,852
Basis difference		(43,296	)		(39,364	)
Negative investment in USAA (1)		3,943			3,513
Investments in real estate partnerships	$	469,522			463,001

^{(1) The USAA partnership has distributed proceeds from debt refinancing and real estate sales in excess of Regency's carrying value of its investment resulting in a negative investment balance, which is recorded within Accounts payable and other liabilities in the Consolidated Balance Sheets.} 

The revenues and expenses for the investments in real estate partnerships, on a combined basis, are summarized as follows:

	Year ended December 31,
(in thousands)	2019			2018			2017
Total revenues	$	417,053			414,631			396,596
Operating expenses:
Depreciation and amortization		97,844			99,847			99,327
Operating and maintenance		65,811			66,299			58,283
General and administrative		6,201			5,697			5,582
Real estate taxes		53,410			54,119			49,904
Other operating expenses		2,709			2,700			4,574
Total operating expenses	$	225,975			228,662			217,670
Other expense (income):
Interest expense, net		75,449			73,508			73,244
Gain on sale of real estate		(64,798	)		(16,624	)		(34,276	)
Provision for impairment, net of tax		9,223			—			—
Total other expense (income)		19,874			56,884			38,968
Net income of the Partnerships	$	171,204			129,085			139,958
The Company's share of net income of the Partnerships	$	60,956			42,974			43,341

Acquisitions

The following table provides a summary of shopping centers and land parcels acquired through our unconsolidated real estate partnerships, which had no such acquisitions in 2019:

(in thousands)		Year ended December 31, 2018
Date Purchased	Property Name	City/State	Property Type	Co-investment Partner	Ownership %			Purchase Price		Debt Assumed, Net of Premiums		Intangible Assets		Intangible Liabilities
01/02/18	Ballard Blocks I	Seattle, WA	Operating	Other		49.90	%	$	54,500		—		3,668		2,350
01/02/18	Ballard Blocks II	Seattle, WA	Development	Other		49.90	%		4,000		—		—		—
01/05/18	The District at Metuchen	Metuchen, NJ	Operating	Columbia II		20.00	%		33,830		—		3,147		1,905
05/18/18	Crossroads Commons II	Boulder, CO	Operating	Columbia I		20.00	%		10,500		—		447		769
09/07/18	Ridgewood Shopping Center	Raleigh, NC	Operating	Columbia II		20.00	%		45,800		10,233		3,372		2,278
12/17/18	Shoppes at Bartram Park	Jacksonville, FL	Operating (1)	Other		50.00	%		984		—		—		—
12/14/18	Town and Country Center	Los Angeles, CA	Operating	Other		9.38	%		197,248		90,000		3,255		5,650
Total property acquisitions								$	346,862		100,233		13,889		12,952

⁽¹⁾ Land parcels purchased as additions to the existing operating property.

Dispositions

The following table provides a summary of shopping centers and land parcels disposed of through our unconsolidated real estate partnerships:

	Year ended December 31,
(in thousands)	2019		2018		2017
Proceeds from sale of real estate investments	$	142,754		27,144		73,122
Gain on sale of real estate	$	64,798		16,624		34,276
The Company's share of gain on sale of real estate	$	29,422		3,608		6,591
Number of operating properties sold		4		1		3
Number of land out-parcels sold		—		2		1

Notes Payable

Scheduled principal repayments on notes payable held by our unconsolidated investments in real estate partnerships as of December 31, 2019 were as follows:

(in thousands) Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities			Unsecured Maturities		Total			Regency’s Pro-Rata Share
2020	$	17,043		338,608			—		355,651			115,953
2021		11,048		269,942			19,635		300,625			104,375
2022		7,811		170,702			—		178,513			68,417
2023		2,989		171,608			—		174,597			65,096
2024		1,513		33,690			—		35,203			14,160
Beyond 5 Years		6,555		534,233			—		540,788			160,472
Net unamortized loan costs, debt premium / (discount)		—		(7,910	)		—		(7,910	)		(2,425	)
Total notes payable	$	46,959		1,510,873			19,635		1,577,467			526,048

These fixed and variable rate loans are all non-recourse to the partnerships, and mature through 2034, with 91.4% having a weighted average fixed interest rate of 4.48%. The remaining notes payable float over LIBOR and had a weighted average variable interest rate of 3.95% at December 31, 2019. Maturing loans will be repaid from proceeds from refinancing, partner capital contributions, or a combination thereof. The Company is obligated to contribute its Pro-rata share to fund maturities if the loans are not refinanced, and it has the capacity to do so from existing cash balances, availability on its line of credit, and operating cash flows. The Company believes that its partners are financially sound and have sufficient capital or access thereto to fund future capital requirements. In the event that a co-investment partner was unable to fund its share of the capital requirements of the co-investment partnership, the Company would have the right, but not the obligation, to loan the defaulting partner the amount of its capital call.

Schedule of Properties Disposed of

The following table provides a summary of consolidated shopping centers and land parcels disposed of during the periods set forth below:

	Year ended December 31,
(in thousands, except number sold data)	2019		2018		2017
Net proceeds from sale of real estate investments	$	137,572		250,445		110,015
Gain on sale of real estate, net of tax	$	24,242		28,343		27,432
Provision for impairment of real estate sold	$	1,836		31,041		—
Number of operating properties sold		7		10		6
Number of land parcels sold		6		9		9

Schedule of Related Party Transactions

Management fee income

In addition to earning our Pro-rata share of net income or loss in each of these co-investment partnerships, we receive fees, as follows:

	Year ended December 31,
(in thousands)	2019		2018		2017
Asset management, property management, leasing, and investment and financing services	$	28,878		27,873		25,260

Unconsolidated Properties [Member]

Schedule of Equity Method Investments [Line Items]

Schedule of Business Acquisitions, by Acquisition

(in thousands)		Year ended December 31, 2018
Date Purchased	Property Name	City/State	Property Type	Co-investment Partner	Ownership %			Purchase Price		Debt Assumed, Net of Premiums		Intangible Assets		Intangible Liabilities
01/02/18	Ballard Blocks I	Seattle, WA	Operating	Other		49.90	%	$	54,500		—		3,668		2,350
01/02/18	Ballard Blocks II	Seattle, WA	Development	Other		49.90	%		4,000		—		—		—
01/05/18	The District at Metuchen	Metuchen, NJ	Operating	Columbia II		20.00	%		33,830		—		3,147		1,905
05/18/18	Crossroads Commons II	Boulder, CO	Operating	Columbia I		20.00	%		10,500		—		447		769
09/07/18	Ridgewood Shopping Center	Raleigh, NC	Operating	Columbia II		20.00	%		45,800		10,233		3,372		2,278
12/17/18	Shoppes at Bartram Park	Jacksonville, FL	Operating (1)	Other		50.00	%		984		—		—		—
12/14/18	Town and Country Center	Los Angeles, CA	Operating	Other		9.38	%		197,248		90,000		3,255		5,650
Total property acquisitions								$	346,862		100,233		13,889		12,952

⁽¹⁾ Land parcels purchased as additions to the existing operating property.

Schedule of Properties Disposed of

Dispositions

The following table provides a summary of shopping centers and land parcels disposed of through our unconsolidated real estate partnerships:

	Year ended December 31,
(in thousands)	2019		2018		2017
Proceeds from sale of real estate investments	$	142,754		27,144		73,122
Gain on sale of real estate	$	64,798		16,624		34,276
The Company's share of gain on sale of real estate	$	29,422		3,608		6,591
Number of operating properties sold		4		1		3
Number of land out-parcels sold		—		2		1