Investments in Unconsolidated Entities

3 Months Ended

Mar. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

As of March 31, 2024, we held five investments in unconsolidated entities for an aggregate investment balance of $120.0 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, 2024 and December 31, 2023 were as follows:


$ in thousands		Carrying Amount
Entity	Ownership Percentage(1)	March 31, 2024		December 31, 2023
Vida JV LLC(2)	42.5%	$	70,884	$	72,234
San Simeon Preferred Equity(3)	—	27,364		27,488
PTCR Holdco, LLC(4)	—	8,574		8,484
Retail GP Fund(5)	4.5% to 13.5%	13,145		13,150
Homestead Communities, LLC (6)	50.0%	30		(37)
Total		$	119,997	$	121,319

(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 (the “Invesco JV”) with Invesco U.S. Income Fund L.P., an affiliate of Invesco, 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, 2024, the Invesco JV owned an 85% interest in a joint venture (“Vida JV LLC”) with an unaffiliated third party. As of March 31, 2024, 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 Preferred Equity”), 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 Preferred Equity has one remaining one-year extension. As of March 31, 2024, 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 affiliate 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 three months ended March 31, 2024 and 2023 were as follows:


	Company’s Share of Unconsolidated Entities' Income (Loss)
$ in thousands	Three Months Ended March 31,
Entity	2024		2023
Vida JV LLC	$	(202)	$	(1,192)
San Simeon Preferred Equity	773		713
PTCR Holdco, LLC	268		266
Retail GP Fund	238		(240)
Homestead Communities, LLC	(75)		—
Total	$	1,002	$	(453)

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


	March 31, 2024					December 31, 2023
$ in thousands	Total assets		Total liabilities	Total equity		Total assets		Total liabilities	Total equity
Vida JV LLC	$	394,783	(228,542)	$	166,241	$	391,584	(222,238)	$	169,346
San Simeon Preferred Equity	129,419		(74,931)	54,488		128,759		(77,428)	51,331
Other	498,287		(272,411)	225,876		507,962		(281,256)	226,706

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


	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
$ in thousands	Revenue	Net income (loss)	Revenue	Net income (loss)
Vida JV LLC	9,761	(472)	9,470	$	(2,802)
San Simeon Preferred Equity	2,703	575	2,661	613
Other	11,359	(1,032)	14,580	6,361
Total	23,823	(929)	26,711	4,172

We did not record any impairment losses on our investments in unconsolidated entities for the three months ended March 31, 2024 and March 31, 2023, respectively.