4.	Investments in Unconsolidated Joint Ventures

Prior to March 14, 2018, RDF, in which we have a 7.4% interest, owned 20.0% of One Steuart Lane (the “Property”). On March 14, 2018, RDF transferred its 20.0% interest to a new joint venture in which it owns a 75.0% interest. Separately on March 14, 2018, RDF acquired an additional 10.0% interest in the Property from its existing partner. Subsequent to these transactions RDF owns a 25.0% economic interest in the Property, comprised of the newly acquired 10.0% interest and an indirect 15.0% interest it owns through the joint venture. As a result of these transactions, RDF was required to consolidate its 75.0% interest in the joint venture that owns 20.0% of the Property, and reflect the 25.0% interest in this venture (5.0% economic interest in the Property) it does not own as noncontrolling interests. We continue to consolidate our 7.4% interest in RDF and reflect the 92.6% interest we do not own as noncontrolling interests. As of June 30, 2018, our economic interest in the Property was 1.85%.

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	June 30, 2018			December 31, 2017
712 Fifth Avenue ⁽¹⁾	50.0%	$	-		$	-
60 Wall Street ⁽²⁾	5.0%		23,760			25,083
One Steuart Lane ⁽²⁾	25.0% ⁽³⁾		40,236	⁽⁴⁾		16,031
Oder-Center, Germany ⁽²⁾	9.5%		3,827			3,648
Investments in unconsolidated joint ventures		$	67,823		$	44,762

		For the Three Months Ended						For the Six Months Ended
(Amounts in thousands)	Paramount	June 30,						June 30,
Our Share of Net Income (Loss):	Ownership	2018			2017			2018			2017
712 Fifth Avenue ⁽¹⁾	50.0%	$	2,608		$	16,504		$	2,608		$	18,434
60 Wall Street ⁽²⁾	5.0%		(102	)		(31	)		(175	)		(36	)
One Steuart Lane ⁽²⁾	25.0% ⁽³⁾		(16	)		33			(18	)		33
Oder-Center, Germany ⁽²⁾	9.5%		31			29			44			41
Income from unconsolidated joint ventures		$	2,521		$	16,535		$	2,459		$	18,472

⁽¹⁾

As of June 30, 2018, our basis in the partnership was negative $20,654 resulting from distributions made to us in excess of our share of earnings recognized. Accordingly, we no longer recognize our proportionate share of earnings from the venture because we have no further obligation to fund additional capital to the venture. Instead, we only recognize earnings to the extent we receive cash distributions from the venture.

⁽²⁾

As of June 30, 2018, the carrying amount of our investments in 60 Wall Street, One Steuart Lane and Oder-Center is greater than our share of equity in these investments by $2,868, $692 and $5,362, respectively.

⁽³⁾

Represents RDF’s economic interest in the Property.

⁽⁴⁾

Includes a $7,086 basis adjustment which was recorded upon the adoption of ASU 2017-05 on January 1, 2018.

712 Fifth Avenue

The following tables provide summarized financial information of 712 Fifth Avenue as of the dates and for the periods set forth below.

(Amounts in thousands)	As of
Balance Sheets:	June 30, 2018			December 31, 2017
Real estate, net	$	199,731		$	202,040
Other assets		59,879			58,034
Total assets	$	259,610		$	260,074

Notes and mortgages payable, net	$	296,337		$	296,132
Other liabilities		4,582			4,615
Total liabilities		300,919			300,747
Partners’ deficit		(41,309	)		(40,673	)
Total liabilities and partners’ deficit	$	259,610		$	260,074


(Amounts in thousands)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
Income Statements:	2018			2017			2018			2017
Rental income	$	12,329		$	12,713		$	24,658		$	25,658
Tenant reimbursement income		1,245			1,209			2,590			2,517
Fee and other income		159			468			617			594
Total revenues		13,733			14,390			27,865			28,769
Operating expenses		6,126			6,102			12,310			12,068
Depreciation and amortization		2,898			3,075			5,924			5,995
Total expenses		9,024			9,177			18,234			18,063
Operating income		4,709			5,213			9,631			10,706
Interest and other income, net		157			48			270			72
Interest and debt expense		(2,674	)		(3,126	)		(5,319	)		(5,951	)
Unrealized gain on interest rate swaps		-			728			-			1,896
Net income	$	2,192		$	2,863		$	4,582		$	6,723