Investments in Unconsolidated Real Estate Ventures (Tables)

3 Months Ended

Mar. 31, 2022

Investments in Unconsolidated Real Estate Ventures

Summary of Unconsolidated Investments

The following is a summary of our investments in unconsolidated real estate ventures:

	Effective
	Ownership
Real Estate Venture Partners	Interest (1)	March 31, 2022		December 31, 2021
		(In thousands)
Prudential Global Investment Management	50.0%	$	207,221	$	208,421
Landmark Partners ("Landmark")	1.8% - 49.0%		26,369		28,298
CBREI Venture	5.0% - 64.0%		57,051		57,812
Canadian Pension Plan Investment Board ("CPPIB")	55.0%		48,179		48,498
J.P. Morgan Global Alternatives ("J.P. Morgan") (2)	50.0%		56,220		52,769
Berkshire Group	50.0%		52,030		52,770
Brandywine Realty Trust	30.0%		13,756		13,693
Other			618		624
Total investments in unconsolidated real estate ventures (3)		$	461,444	$	462,885

(1) Reflects our effective ownership interests in the underlying real estate as of March 31, 2022. We have multiple investments with certain venture partners with varying ownership interests in the underlying real estate.

(2) J.P. Morgan is the advisor for an institutional investor.

(3) As of March 31, 2022 and December 31, 2021, our total investments in unconsolidated real estate ventures were greater than our share of the net book value of the underlying assets by $17.6 million and $18.6 million, resulting principally from capitalized interest and our zero investment balance in the real estate venture with CPPIB that owns 1101 17th Street.

The following is a summary of the debt of our unconsolidated real estate ventures:

	Weighted
	Average Effective
	Interest Rate (1)	March 31, 2022		December 31, 2021
		(In thousands)
Variable rate (2)	2.97%	$	740,782	$	785,369
Fixed rate (3)	4.16%		275,403		309,813
Mortgages payable			1,016,185		1,095,182
Unamortized deferred financing costs			(4,431)		(5,239)
Mortgages payable, net (4)		$	1,011,754	$	1,089,943

(1) Weighted average effective interest rate as of March 31, 2022.

(2) Includes variable rate mortgages payable with interest rate cap agreements.

(3) Includes variable rate mortgages payable with interest rates fixed by interest rate swap agreements.

(4) See Note 17 for additional information on guarantees of the debt of certain of our unconsolidated real estate ventures.

	March 31, 2022		December 31, 2021
	(In thousands)
Combined balance sheet information:
Real estate, net	$	2,019,377	$	2,116,290
Other assets, net		246,848		264,397
Total assets	$	2,266,225	$	2,380,687
Mortgages payable, net	$	1,011,754	$	1,089,943
Other liabilities, net		93,685		118,752
Total liabilities		1,105,439		1,208,695
Total equity		1,160,786		1,171,992
Total liabilities and equity	$	2,266,225	$	2,380,687

	Three Months Ended March 31,
	2022		2021
	(In thousands)
Combined income statement information:
Total revenue	$	42,874	$	48,217
Operating income (1)		48,426		1,714
Net income (loss) (1)		39,283		(6,526)

(1) Includes the gain from the sale of The Alaire, The Terano and 12511 Parklawn Drive totaling $45.1 million during the three months ended March 31, 2022.

Summary of unconsolidated investments disposition activity

						Mortgages		Proportionate
	Real Estate			Gross		Payable		Share of
	Venture		Ownership	Sales		Repaid by		Aggregate
Date Disposed	Partner	Assets	Percentage	Price		Venture		Gain (1)
				(In thousands)
January 27, 2022	Landmark	The Alaire, The Terano and 12511 Parklawn Drive	1.8% - 18.0%	$	137,500	$	79,829	$	5,243

(1) Included in "Income (loss) from unconsolidated real estate ventures, net" in our statement of operations.