Investments in Unconsolidated Joint Ventures (Tables)

9 Months Ended

Sep. 30, 2023

Summary of Financial Information of Unconsolidated Joint Ventures

The following tables summarize our investments in unconsolidated joint ventures as of the dates thereof and the income or loss from these investments for the periods set forth below.

(Amounts in thousands)	Paramount	As of
Our Share of Investments:	Ownership	September 30, 2023			December 31, 2022
712 Fifth Avenue (1)	50.0%	$	-		$	-
Market Center	67.0%		181,437			192,948
55 Second Street (2)	44.1%		83,560			85,340
111 Sutter Street (3)	49.0%		-			-
1600 Broadway (2)	9.2%		8,762			9,113
60 Wall Street	5.0%		-	(4)		25,034
One Steuart Lane (2)	35.0% (5)		90,865			77,961
Oder-Center, Germany (2)	9.5%		3,400			3,107
Investments in unconsolidated joint ventures		$	368,024		$	393,503

	For the Three Months Ended							For the Nine Months Ended
(Amounts in thousands)	September 30,							September 30,
Our Share of Net Income (Loss):	2023				2022			2023				2022
712 Fifth Avenue (1)	$	-			$	-		$	-			$	-
Market Center		(3,248	)			(2,811	)		(8,482	)			(7,661	)
55 Second Street (2)		(642	)			(825	)		(1,780	)			(2,296	)
111 Sutter Street (3)		-				(748	)		-				(2,207	)
1600 Broadway (2)		1				30			1				(38	)
60 Wall Street		-		(4)		(23	)		(25,001	)	(4)		42
One Steuart Lane (2)		(25,037	)	(6)		(1,516	)		(27,811	)	(6)		(3,303	)
Oder-Center, Germany (2)		(48	)			96			(65	)			137
Loss from unconsolidated joint ventures	$	(28,974	)		$	(5,797	)	$	(63,138	)		$	(15,326	)

(1)At December 31, 2022, our basis in the joint venture that owns 712 Fifth Avenue was negative $13,427. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. Instead, we recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture. For the nine months ended September 30, 2023, the joint venture had net income of $3,313 of which our 50.0% share was $1,657. Accordingly, our basis in the joint venture, taking into account our share of income, was negative $11,770 as of September 30, 2023.

(2)As of September 30, 2023, the carrying amount of our investments in 55 Second Street, 1600 Broadway, One Steuart Lane and Oder-Center is greater than our share of equity in these investments by $463, $307, $640 and $4,215, respectively, and primarily represents the unamortized portion of our capitalized acquisition costs.

(3)At December 31, 2022, our basis in the joint venture that owns 111 Sutter Street was negative $107. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. Instead, we recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture. For the nine months ended September 30, 2023, the joint venture had net loss of $11,862 of which our 49.0% share was $5,813. Accordingly, our basis in the joint venture, taking into account our share of loss, was negative $5,920 as of September 30, 2023.

(4)In May 2023, the joint venture that owns 60 Wall Street defaulted on the $575,000 non-recourse mortgage loan securing the property. The joint venture is currently in negotiations with the lender to modify the loan. Additionally, in the second quarter of 2023, the joint venture recognized a $455,893 real estate impairment loss. Accordingly, we recognized a $24,734 impairment loss on our investment in 60 Wall Street. This impairment, together with our share of operating losses recognized in the second quarter, reduced our investment balance to negative $668 as of June 30, 2023. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. Instead, we recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture. For the three months ended September 30, 2023, the joint venture had net loss of $7,661 of which our 5.0% share was $383. Accordingly, our basis in the joint venture, taking into account our share of loss, was negative $1,051 as of September 30, 2023.

(5)Represents RDF’s economic interest in One Steuart Lane, a for-sale residential condominium project. Our economic interest in One Steuart Lane (based on our 7.4% ownership interest in RDF) is 2.6%.

(6)In the third quarter of 2023, One Steuart Lane recognized a $68,407 impairment loss related to residential condominium units and accordingly, RDF recognized a $23,942 impairment loss on its 35.0% investment in One Steuart Lane.

Unconsolidated Joint Ventures [Member]

Summary of Financial Information of Unconsolidated Joint Ventures

The following tables provide the combined summarized financial information of our unconsolidated joint ventures as of the dates thereof and for the periods set forth below.

(Amounts in thousands)	As of
Balance Sheets:	September 30, 2023		December 31, 2022
Real estate, net	$	1,974,734	$	2,377,084
Cash and cash equivalents and restricted cash		208,778		252,540
Intangible assets, net		55,295		69,599
For-sale residential condominium units (1)		250,000		322,232
Other assets		84,647		87,054
Total assets	$	2,573,454	$	3,108,509
Notes and mortgages payable, net	$	1,740,516	$	1,834,916
Intangible liabilities, net		6,184		10,972
Other liabilities		81,698		50,783
Total liabilities		1,828,398		1,896,671
Equity		745,056		1,211,838
Total liabilities and equity	$	2,573,454	$	3,108,509

	For the Three Months Ended						For the Nine Months Ended
(Amounts in thousands)	September 30,						September 30,
Income Statements:	2023			2022			2023			2022
Revenues:
Rental revenue	$	38,629		$	41,145		$	119,235		$	153,181
Other income (2)		874			15,250			6,492			65,276
Total revenues		39,503			56,395			125,727			218,457
Expenses:
Operating (2)		23,941			34,234			73,632			129,035
Depreciation and amortization		16,863			17,734			52,341			68,140
Total expenses		40,804			51,968			125,973			197,175
Other income (expense):
Interest and other income		734			471			2,226			487
Interest and debt expense		(19,895	)		(13,967	)		(53,256	)		(47,900	)
Impairment loss (3)		(68,407	)		-			(524,300	)		-
Loss before income taxes		(88,869	)		(9,069	)		(575,576	)		(26,131	)
Income tax expense		(2	)		(11	)		(32	)		(54	)
Net loss	$	(88,871	)	$	(9,080	)	$	(575,608	)	$	(26,185	)

(1)Represents residential condominium units at One Steuart Lane that are available for sale.

(2)Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane.

(3)Includes an impairment loss related to condominium units at One Steuart Lane in the three and nine months ended September 30, 2023 and a real estate impairment loss related to 60 Wall Street in the nine months ended September 30, 2023. See notes 4 and 6 on page 13.