Investments in Unconsolidated Real Estate Ventures (Tables)

6 Months Ended

Jun. 30, 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)	June 30, 2022		December 31, 2021
		(In thousands)
Prudential Global Investment Management	50.0%	$	205,965	$	208,421
Landmark Partners ("Landmark")	18.0% - 49.0%		25,437		28,298
CBREI Venture (2)	5.0% - 64.0%		56,170		57,812
Canadian Pension Plan Investment Board ("CPPIB")	55.0%		1,358		48,498
J.P. Morgan Global Alternatives ("J.P. Morgan") (3)	50.0%		60,203		52,769
Berkshire Group	50.0%		50,941		52,770
Brandywine Realty Trust	30.0%		13,694		13,693
Other			581		624
Total investments in unconsolidated real estate ventures (4)		$	414,349	$	462,885

(1) Reflects our effective ownership interests in the underlying real estate as of June 30, 2022. We have multiple investments with certain venture partners with varying ownership interests in the underlying real estate.

(2) On August 1, 2022, we acquired the remaining 36.0% ownership interest in Atlantic Plumbing, a multifamily asset owned by the venture, for $19.7 million.

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

(4) As of June 30, 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 $12.6 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)	June 30, 2022		December 31, 2021
		(In thousands)
Variable rate (2)	4.60%	$	499,076	$	785,369
Fixed rate (3)	4.16%		275,016		309,813
Mortgages payable (4)			774,092		1,095,182
Unamortized deferred financing costs			(597)		(5,239)
Mortgages payable, net (4) (5)		$	773,495	$	1,089,943

(1) Weighted average effective interest rate as of June 30, 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) Excludes mortgages payable related to the unconsolidated real estate venture with Fortress.

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

	June 30, 2022		December 31, 2021
	(In thousands)
Combined balance sheet information: (1)
Real estate, net	$	1,684,823	$	2,116,290
Other assets, net		217,108		264,397
Total assets	$	1,901,931	$	2,380,687
Mortgages payable, net	$	773,495	$	1,089,943
Other liabilities, net		81,925		118,752
Total liabilities		855,420		1,208,695
Total equity		1,046,511		1,171,992
Total liabilities and equity	$	1,901,931	$	2,380,687

	Three Months Ended June 30,					Six Months Ended June 30,
	2022		2021		X	2022		2021
	(In thousands)
Combined income statement information: (1)
Total revenue	$	41,379	$	47,864		$	84,253	$	96,081
Operating income (2)		36,108		41,493			84,534		43,207
Net income (2)		25,127		33,356			64,410		26,830

(1) Excludes amounts related to the unconsolidated real estate venture with Fortress.

(2) Includes the gain on the sale of various assets totaling $32.3 million and $77.4 million during the three and six months ended June 30, 2022 and $38.1 million during the three and six months ended June 30, 2021.

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
May 10, 2022	Landmark	Galvan	1.8%		152,500		89,500		407
June 1, 2022	CPPIB	1900 N Street	55.0%		265,000		151,709		529
								$	6,179

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