Real Estate Partnership

6 Months Ended

Jun. 30, 2014

Equity Method Investments and Joint Ventures [Abstract]

REAL ESTATE PARTNERSHIP

REAL ESTATE PARTNERSHIP

We have a joint venture arrangement (the “Partnership”) with affiliates of a discretionary fund created and advised by ING Clarion Partners (“Clarion”). We own 30% of the equity in the Partnership and Clarion owns 70%. We hold a general partnership interest, however, Clarion also holds a general partnership interest and has substantive participating rights. We cannot make significant decisions without Clarion’s approval. Accordingly, we account for our interest in the Partnership using the equity method. As of June 30, 2014, the Partnership owned seven retail real estate properties. We are the manager of the Partnership and its properties, earning fees for acquisitions, dispositions, management, leasing, and financing. Intercompany profit generated from fees is eliminated in consolidation. We also have the opportunity to receive performance-based earnings through our Partnership interest. Accounting policies for the Partnership are similar to accounting policies followed by the Trust. The Partnership is subject to a buy-sell provision which is customary for real estate joint venture agreements and the industry. Either partner may initiate this provision at any time, which could result in either the sale of our interest or the use of available cash or borrowings to acquire Clarion’s interest.

The following tables provide summarized operating results and the financial position of the Partnership:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
	(In thousands)
OPERATING RESULTS
Revenue	$	4,469	$	4,624	$	9,487	$	9,573
Expenses
Other operating expenses	1,390		1,318		3,500		3,135
Depreciation and amortization	1,590		1,361		3,077		2,730
Interest expense	781		841		1,620		1,683
Total expenses	3,761		3,520		8,197		7,548
Net income	$	708	$	1,104	$	1,290	$	2,025
Our share of net income from real estate partnership	$	250	$	372	$	463	$	684

	June 30,		December 31,
	2014		2013
	(In thousands)
BALANCE SHEETS
Real estate, net	$	169,193	$	170,867
Cash	3,046		2,210
Other assets	5,170		5,668
Total assets	$	177,409	$	178,745
Mortgages payable	$	44,885	$	56,922
Other liabilities	3,937		4,100
Partners’ capital	128,587		117,723
Total liabilities and partners’ capital	$	177,409	$	178,745
Our share of unconsolidated debt	$	13,466	$	17,077
Our investment in real estate partnership	$	35,511	$	32,264

On June 5, 2014, the Partnership repaid an $11.9 million mortgage loan secured by one of its properties at par prior to the original maturity date of July 5, 2014. Both partners made additional capital contributions totaling $11.9 million to repay the mortgage loan, of which our contribution was $3.6 million.