Investments in Unconsolidated Entities

3 Months Ended

Mar. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

As of March 31, 2023, we held four investments in unconsolidated entities for an aggregate investment balance of $125.1 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 March 31, 2023 and December 31, 2022 were as follows:


$ in thousands			Carrying Amount
Entity	Ownership Percentage(1)		March 31, 2023		December 31, 2022
Vida JV LLC(2)	42.5	%	$	77,139	$	79,478
San Simeon Holdings(3)	—		26,162		25,516
PTCR Holdco, LLC(4)	—		8,206		8,129
Retail GP Fund(5)	4.5% to 13.5%		13,561		14,237
Total			$	125,068	$	127,360

(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)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 March 31, 2023, the Invesco JV owned an 85% interest in a joint venture (“Vida JV LLC”) with an unaffiliated third party. As of March 31, 2023, Vida JV LLC owned a portfolio of twenty medical office buildings.

(3)We own a preferred membership interest in San Simeon Holdings LLC (“San Simeon Holdings”), a limited liability company that owns a multifamily property. Our preferred membership interest is mandatorily redeemable on December 15, 2023, although there are certain conditions that may accelerate the redemption date. The common member of San Simeon Holdings has two one-year options that may extend the mandatory redemption date of our preferred membership interest to December 15, 2025. The investment yields a current pay rate of 7.00%, increasing by 0.25% during each extension term, as well as a preferred accrued return of 4.00% due upon redemption.

(4)We hold an 85% ownership interest in a consolidated joint venture, ITP Investments LLC (“ITP LLC”). ITP LLC holds a preferred equity investment in PTCR Holdco, LLC, a fully integrated retail platform operating company.

(5)ITP LLC has a 90% interest in PT Co-GP Fund, LLC (“Retail GP Fund”), which was formed to invest in retail properties through non-controlling general partner interests. ITP LLC holds non-controlling general partner interests through its interest in the Retail GP Fund ranging from 4.5% to 13.5% in nine retail properties.

Our share of the unconsolidated entities’ income (loss) for the three months ended March 31, 2023 and 2022 were as follows:


$ in thousands	Company’s Share of Unconsolidated Entities' Income (Loss)
	Three Months Ended March 31,
Entity	2023		2022
Vida JV LLC	$	(1,192)	$	3,152
San Simeon Holdings	713		607
PTCR Holdco, LLC	266		174
Retail GP Fund	(240)		46
Total	$	(453)	$	3,979

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


	March 31, 2023								December 31, 2022
$ in thousands	Vida JV LLC		San Simeon Holdings		Other		Total		Vida JV LLC		San Simeon Holdings		Other		Total
Total assets	$	406,177	$	123,557	$	598,929	$	1,128,663	$	407,405	$	123,664	$	595,006	$	1,126,075
Total liabilities	(225,234)		(75,172)		(299,537)		(599,943)		(220,573)		(76,583)		(284,118)		(581,274)
Total equity	$	180,943	$	48,385	$	299,392	$	528,720	$	186,832	$	47,081	$	310,888	$	544,801

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


	Three Months Ended March 31, 2023								Three Months Ended March 31, 2022
$ in thousands	Vida JV LLC		San Simeon Holdings		Other		Total		Vida JV LLC		San Simeon Holdings		Other		Total
Total revenue	$	9,470	$	2,661	$	14,580	$	26,711	$	9,055	$	2,464	$	7,323	$	18,842
Net income (loss)	$	(2,802)	$	613	$	6,361	$	4,172	$	7,421	$	720	$	770	$	8,911

We did not record any impairment losses on our investments in unconsolidated entities for the three months ended March 31, 2023.