Investments in Unconsolidated Entities (Tables)

12 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Our investments in unconsolidated entities as of December 31, 2023 and 2022 were as follows:


$ in thousands			Carrying Amount
Entity	Ownership Percentage(1)		2023		2022
Vida JV LLC(2)	42.5	%	$	72,234	$	79,478
San Simeon Preferred Equity(3)	—		27,488		25,516
PTCR Holdco, LLC(4)	—		8,484		8,129
Retail GP Fund(5)	4.5% - 13.5%		13,150		14,237
Homestead Communities, LLC (6)	50	%	(37)		—
Total			$	121,319	$	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 December 31, 2023 and 2022, the Invesco JV owned an 85% interest in a joint venture (“Vida JV LLC”) with an unaffiliated third party. As of December 31, 2023 and 2022, Vida JV LLC owned a portfolio of twenty separate medical office buildings.

(3)We own a preferred membership interest in San Simeon Holdings LLC (“San Simeon Preferred Equity (f/k/a San Simeon Holdings)”), a limited liability company that owns a multifamily property. The common member of San Simeon Preferred Equity had two one-year options that would extend the mandatory redemption date of our preferred membership interest to December 15, 2025. The original mandatory redemption was due to occur on December 15, 2023. However, on December 15, 2023, San Simeon Preferred Equity exercised the first extension option which makes our preferred membership interest mandatorily redeemable on December 15, 2024. The common member of San Simeon has one remaining one-year extension. As of December 31, 2023, the investment yields a preferred return rate of 7.25%, which includes both the current pay and the deferred pay rates, 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 eight retail properties.

(6)We hold a 50% ownership interest in a real estate operating company focused on the aggregation and asset management of manufacturing housing through a joint venture, Homestead Communities, LLC (“Homestead”). An affiliated Invesco fund owns the remaining 50% ownership interest. An unaffiliated third party has a promote incentive that could dilute our ownership percentage if certain performance milestones are exceeded.

Our share of the unconsolidated entities’ income (loss) for the years ended December 31, 2023, 2022 and 2021 were as follows:


$ in thousands			INREIT’s Share of Unconsolidated Entities' Income (Loss)
Entity	Ownership Percentage		2023		2022		2021
Vida JV LLC	42.5	%	$	(3,165)	$	4,591	$	920
San Simeon Preferred Equity	—		3,027		2,603		1,996
PTCR Holdco, LLC	—		1,068		1,083		189
Retail GP Fund	4.5% - 13.5%		1,422		90		43
Homestead Communities, LLC	50	%	(444)		—		—
Total			$	1,908	$	8,367	$	3,148

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


	December 31, 2023						December 31, 2022
$ in thousands	Total assets		Total liabilities		Total equity		Total assets		Total liabilities		Total equity
Vida JV LLC	$	391,584	$	(222,238)	$	169,346	$	407,405	$	(220,573)	$	186,832
San Simeon Preferred Equity	$	128,759	$	(77,428)	$	51,331	$	123,664	$	(76,583)	$	47,081
Other	$	507,962	$	(281,256)	$	226,706	$	595,006	$	(284,118)	$	310,888

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


	Year Ended December 31, 2023				Year Ended December 31, 2022				Year Ended December 31, 2021
$ in thousands	Revenue		Net income (loss)		Revenue		Net income		Revenue		Net income
Vida JV LLC	$	37,383	$	(7,886)	$	37,171	$	11,204	$	36,100	$	2,207
San Simeon Preferred Equity	10,532		1,737		9,979		2,397		8,517		1,663
Other	74,173		1,105		66,714		33,955		36,418		4,244
Total	$	122,088	$	(5,044)	$	113,864	$	47,556	$	81,035	$	8,114