Investments in Unconsolidated Entities

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entities

Investments in Unconsolidated Entities

As of December 31, 2021, we held four investments in unconsolidated entities for an aggregate investment balance of $115.3 million that are accounted for using the equity method of accounting. The amounts reflected in the following tables (except for our share of equity and income) are based on the historical financial information of the individual unconsolidated entities. We do not record operating losses of an unconsolidated entity in excess of its investment balance unless we are liable for the obligations of the entity or are otherwise committed to provide financial support to the entity.

Our investments in unconsolidated entities as of December 31, 2021 and 2020, and our share of the unconsolidated entities’ income (loss) for the years ended December 31, 2021 and 2020 were as follows:

$ in thousands			Carrying Amount				INREIT’s Share of Unconsolidated Entities Income (Loss)
Entity	Ownership Percentage(1)		2021		2020		2021		2020
Vida JV LLC(2)	42.5	%	$	80,455	$	76,166	$	920	$	(199)
San Simeon Holdings(3)	—		21,088		13,118		1,996		79
PTCR Holdco, LLC(4)	—		7,749		—		189		—
GP Fund(5)	6.8% - 9.0%		5,993		—		43		—
Total			$	115,285	$	89,284	$	3,148	$	(120)

(1)Ownership percentage represents our entitlement to residual distributions after payments of priority returns, where applicable. Preferred equity investment ownership percentages are not presented.

(2)In September 2020, we formed a joint venture with Invesco U.S. Income Fund L.P., an affiliate of Invesco, (the “Invesco JV”) to acquire an interest in a portfolio of medical office buildings located throughout the United States (the “Sunbelt Medical Office Portfolio”). As of December 31, 2021 and 2020, the Invesco JV owned an 85% interest in a joint venture (“Vida JV LLC”) with an unaffiliated third party. As of December 31, 2021, Vida JV LLC owned a portfolio of twenty separate medical office buildings. As of December 31, 2020, Vida JV LLC owned a portfolio of eighteen separate medical office buildings.

(3)In December 2020, we invested in San Simeon Holdings LLC (“San Simeon Holdings”), a limited liability company that owns a multifamily property. Our investment is structured as a preferred membership interest. The investment yields a current pay rate of 6.00%, increasing 0.50% annually during the initial term and 0.25% during each extension term, as well as a preferred accrued return of 4.00% due upon redemption. See Note 14 — “Commitments and Contingencies” for additional information regarding our future capital commitment to San Simeon Holdings.

(4)We hold an 85% ownership interest in a consolidated joint venture, ITP Investments LLC (“ITP LLC”). In October 2021, ITP LLC acquired a preferred equity investment in PTCR Holdco, LLC, a fully integrated retail platform operating company for $7.6 million.

(5)ITP LLC has a 90% interest in PT Co-GP Fund, LLC (“GP Fund”), which was formed to obtain non-controlling general partner interests in retail properties. In October 2021 and December 2021, ITP LLC acquired non-controlling general partner interests through its interest in the GP Fund ranging from 6.8% to 9.0% in six retail properties for $5.9 million.

The following tables provide summarized balance sheets of our investments in unconsolidated entities:

	December 31, 2021								December 31, 2020
$ in thousands	Vida JV LLC		San Simeon Holdings		Other		Total		Vida JV LLC		San Simeon Holdings		Other		Total
Total assets	$	407,574	$	122,661	$	234,015	$	764,250	$	366,482	$	112,594	$	—	$	479,076
Total liabilities	(218,845)		(79,237)		(94,373)		(392,455)		(187,882)		(76,322)		—		(264,204)
Total equity	$	188,729	$	43,424	$	139,642	$	371,795	$	178,600	$	36,272	$	—	$	214,872

The following tables provide summarized operating data of our investments in unconsolidated entities:

	Year Ended December 31, 2021
$ in thousands	Vida JV LLC		San Simeon Holdings		Other		Total
Total revenue	$	36,100	$	8,517	$	36,418	$	81,035
Net income (loss)	2,207		1,663		4,244		8,114

	Year Ended December 31, 2020
$ in thousands	Vida JV LLC		San Simeon Holdings		Other		Total
Total revenue	$	5,716	$	388	$	—	$	6,104
Net income (loss)	(489)		33		—		(456)