VARIABLE INTEREST ENTITIES

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

As of June 30, 2019 and December 31, 2018, we consolidated multiple variable interest entities (“VIE’s”) relating to two projects: one is comprised of real estate holdings and the Hotel Fund that owns an operating hotel, restaurant and spa. We are deemed to be the primary beneficiaries of these consolidated VIE’s as we have the power to direct the activities that most significantly affect their economic performance and we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. The assets of our consolidated VIE’s are only available to settle the obligations of the respective entities.

The following table summarizes the carrying amounts of the above referenced entities’ assets and liabilities included in the Company’s condensed consolidated balance sheets at June 30, 2019 and December 31, 2018, net of intercompany eliminations (in thousands):



	June 30, 2019		December 31, 2018
Total assets	$	97,730	$	85,240
Total liabilities	57,640		37,770

The following table summarizes the results of operations for the three and six months ended June 30, 2019 and 2018, net of intercompany eliminations (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net loss	$	(2,890	)	$	(833	)	$	(6,040	)	$	(2,333	)

The Company’s maximum exposure to loss consists of its combined equity in those entities which totaled $25.1 million as of June 30, 2019. The Hotel Fund made a preferred distribution, payable monthly, accruing at a rate of 7.0% per annum on invested capital, cumulative and non-compounding (the “Preferred Distribution”) of $0.3 million and $0.6 million and during the three and six months ended June 30, 2019, and $0.1 million during the three and six months ended June 30, 2018.