Variable Interest Entities

6 Months Ended

Jun. 30, 2019

Variable Interest Entities [Abstract]

Variable Interest Entities

Variable Interest Entities

The Company’s variable interest in VIEs currently are in the form of equity ownership and loans provided by the Company to a VIE or other partner. The Company examines specific criteria and uses its judgment when determining if the Company is the primary beneficiary of a VIE. The primary beneficiary generally is defined as the party with the controlling financial interest. Consideration of various factors include, but are not limited to, the Company’s ability to direct the activities that most significantly impact the entity’s economic performance and its obligation to absorb losses from or right to receive benefits of the VIE that could potentially be significant to the VIE.

Consolidated VIEs

As of June 30, 2019, the Company does not have any investments in consolidated VIEs.

Unconsolidated VIE

At June 30, 2019, the Company had $193.9 million of recorded investments in mortgage notes receivable which were considered variable interests in unconsolidated VIEs. These mortgage notes receivable were secured by three waterparks and adjacent land and one public charter school. The Company's maximum exposure to loss associated with these VIEs is limited to the Company's outstanding mortgage notes and related accrued interest receivable of $193.9 million. Subsequent to June 30, 2019, the Company received repayment in full from SVVI, LLC (Schlitterbahn Group) on three of these mortgage notes receivable with a balance totaling $189.7 million at June 30, 2019 and that were secured by three waterparks and adjacent land.

In addition, at June 30, 2019, the Company had $30.9 million of recorded investments in unconsolidated VIEs through joint ventures that own two recreation anchored lodging properties. The Company accounts for these investments in joint ventures under the equity method of accounting. The Company's maximum exposure to loss at June 30, 2019, is its investment in the joint ventures of $30.9 million as well as the Company's guarantee of its pro-rata share of the estimated costs to complete renovations of approximately $14.6 million. See Note 8 for further discussion related to the Company's unconsolidated real estate joint ventures.

While these entities are VIEs, the Company has determined that the power to direct the activities of these VIEs that most significantly impact the VIEs' economic performance is not held by the Company.