Investments in Real Estate Partnerships (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020
(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%		67	$	179,728		1,583,097		25,425		56,244
New York Common Retirement Fund (NYC) (1)	30.00%		4		27,627		205,332		488		4,241
Columbia Regency Retail Partners, LLC (Columbia I)	20.00%		7		8,699		136,120		1,030		5,383
Columbia Regency Partners II, LLC (Columbia II)	20.00%		13		37,882		377,246		1,045		5,103
Cameron Village, LLC (Cameron)	30.00%		1		10,108		94,551		757		2,531
RegCal, LLC (RegCal)	25.00%		6		25,908		107,283		1,296		5,397
US Regency Retail I, LLC (USAA) (2)	20.01%		7		—		85,006		790		3,948
Other investments in real estate partnerships (3)	35.00% - 50.00%		9		177,203		478,592		3,338		8,574
Total investments in real estate partnerships			114	$	467,155		3,067,227		34,169		91,421

⁽¹⁾ On January 1, 2020, the Company purchased the remaining 70% of a property owned by the NYC partnership (Country Walk Plaza), as discussed in note 2, and therefore all earnings of this property are included in consolidated results from the date of acquisition and excluded from partnership earnings.

⁽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 $4.4 million, which is recorded within Accounts Payable and other liabilities in the Consolidated Balance Sheets.

⁽³⁾ In January 2020, the Company purchased an additional 16.62% interest in Town and Country Shopping Center, bringing its total ownership interest to 35%.

	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.  

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

	December 31,
(in thousands)	2020		2019
Investments in real estate, net	$	2,817,713		2,917,415
Acquired lease intangible assets, net		32,607		40,549
Other assets		216,907		200,920
Total assets	$	3,067,227		3,158,884
Notes payable	$	1,557,043		1,577,467
Acquired lease intangible liabilities, net		33,223		44,387
Other liabilities		97,321		96,388
Capital - Regency		509,873		508,875
Capital - Third parties		869,767		931,767
Total liabilities and capital	$	3,067,227		3,158,884

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)	2020			2019
Capital - Regency	$	509,873			508,875
Basis difference		(47,119	)		(43,296	)
Negative investment in USAA (1)		4,401			3,943
Investments in real estate partnerships	$	467,155			469,522

^{(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)	2020			2019			2018
Total revenues	$	381,094			417,053			414,631
Operating expenses:
Depreciation and amortization		101,590			97,844			99,847
Operating and maintenance		65,146			65,811			66,299
General and administrative		5,870			6,201			5,697
Real estate taxes		53,747			53,410			54,119
Other operating expenses		3,126			2,709			2,700
Total operating expenses	$	229,479			225,975			228,662
Other expense (income):
Interest expense, net		66,786			75,449			73,508
Gain on sale of real estate		(7,146	)		(64,798	)		(16,624	)
Early extinguishment of debt		554			—			—
Provision for impairment, net of tax		—			9,223			—
Total other expense (income)		60,194			19,874			56,884
Net income of the Partnerships	$	91,421			171,204			129,085
The Company's share of net income of the Partnerships	$	34,169			60,956			42,974

Acquisitions

The following table provides a summary of shopping centers and land parcels acquired through our unconsolidated real estate partnerships during 2020, which had no such acquisitions in 2019:

(in thousands)

Year ended December 31, 2020

Date Purchased

Property Name

City/State

Property Type

Co-investment Partner

Ownership %

Purchase Price

Debt Assumed, Net of Premiums

Intangible Assets

Intangible Liabilities

11/13/20

Eastfield at Baybrook

Houston, TX

Development

Other

50.00%

$

4,491

—

—

—

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)	2020		2019		2018
Proceeds from sale of real estate investments	$	27,974		142,754		27,144
Gain on sale of real estate	$	7,147		64,798		16,624
The Company's share of gain on sale of real estate	$	2,413		29,422		3,608
Number of operating properties sold		2		4		1
Number of land out-parcels sold		—		—		2

Notes Payable

Scheduled principal repayments on notes payable held by our unconsolidated investments in real estate partnerships as of December 31, 2020, 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
2021	$	11,257		333,068			15,635		359,960			124,100
2022		7,736		254,873			—		262,609			97,465
2023		3,196		171,608			—		174,804			65,137
2024		1,796		33,690			—		35,486			14,217
2025		2,168		146,000			—		148,168			44,853
Beyond 5 Years		10,859		574,321			—		585,180			191,940
Net unamortized loan costs, debt premium / (discount)		—		(9,164	)		—		(9,164	)		(3,054	)
Total notes payable	$	37,012		1,504,396			15,635		1,557,043			534,658

These fixed and variable rate loans are all non-recourse to the partnerships, and mature through 2034, with 91.5% having a weighted average fixed interest rate of 4.1%. The remaining notes payable float over LIBOR and had a weighted average variable interest rate of 2.4% at December 31, 2020. 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 consolidated land parcels disposed of during the periods set forth below:

	Year ended December 31,
(in thousands, except number sold data)	2020			2019			2018
Net proceeds from sale of real estate investments	$	189,444	(1)		137,572			250,445
Gain on sale of real estate, net of tax	$	67,465			24,242			28,343
Provision for impairment of real estate sold	$	958			1,836			31,041
Number of operating properties sold		6			7			10
Number of land parcels sold		11			6			9
Percent interest sold	50% - 100%				100	%		100	%

⁽¹⁾ Includes proceeds from repayment of a short-term note on the sale of one of the properties, issued at closing and repaid during the same three months ended March 31, 2020.

Schedule of Related Party Transactions

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)	2020		2019		2018
Asset management, property management, leasing, and investment and financing services	$	26,618		28,878		27,873

Unconsolidated Properties [Member]

Schedule of Equity Method Investments [Line Items]

Schedule of Business Acquisitions, by Acquisition

The following table provides a summary of shopping centers and land parcels acquired through our unconsolidated real estate partnerships during 2020, which had no such acquisitions in 2019:

(in thousands)

Year ended December 31, 2020

Date Purchased

Property Name

City/State

Property Type

Co-investment Partner

Ownership %

Purchase Price

Debt Assumed, Net of Premiums

Intangible Assets

Intangible Liabilities

11/13/20

Eastfield at Baybrook

Houston, TX

Development

Other

50.00%

$

4,491

—

—

—

Schedule of Properties Disposed of

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)	2020		2019		2018
Proceeds from sale of real estate investments	$	27,974		142,754		27,144
Gain on sale of real estate	$	7,147		64,798		16,624
The Company's share of gain on sale of real estate	$	2,413		29,422		3,608
Number of operating properties sold		2		4		1
Number of land out-parcels sold		—		—		2