Investments in and Advances to Unconsolidated Joint Ventures

6 Months Ended

Jun. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investments in and Advances to Unconsolidated Joint Ventures

Investments in and Advances to Unconsolidated Joint Ventures

The Company owns interests in the following entities that are accounted for under the equity method, excluding investments classified as discontinued operations (dollars in thousands): 

				Carrying Amount
				June 30,		December 31,
Entity(1)	Segment	Property Count(2)	Ownership %(2)	2022		2021
SWF SH JV	Other	19	54	$	351,686	$	355,394
Life Science JV	Life science	1	49	26,719		25,605
Needham Land Parcel JV(3)	Life science	—	38	14,831		13,566
Medical Office JVs(4)	Medical office	3	20 - 67	8,918		9,069
				$	402,154	$	403,634

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(1)These entities are not consolidated because the Company does not control, through voting rights or other means, the joint ventures.

(2)Property counts and ownership percentages are as of June 30, 2022.

(3)In December 2021, the Company acquired a 38% interest in a life science development joint venture in Needham, Massachusetts for $13 million. Land held for development is excluded from the property count as of June 30, 2022.

(4)Includes two unconsolidated medical office joint ventures in which the Company holds an ownership percentage as follows: (i) Ventures IV (20%) and (ii) Suburban Properties, LLC (67%). During 2021, the Company also held a 30% interest in Ventures III, which issued its final distribution and was dissolved.

In April 2021, the Company sold its two preferred equity investments for their carrying value as part of the Discovery SHOP Portfolio disposition (see Note 4). Prior to the sale, the Company’s ownership percentage in these two unconsolidated joint ventures was as follows: (i) Discovery Naples JV (41%) and (ii) Discovery Sarasota JV (47%).

In May 2021, the two remaining CCRCs in the CCRC JV were sold for $38 million, $19 million of which represents the Company’s 49% interest, resulting in an immaterial gain on sale recorded within equity income (loss) from unconsolidated joint ventures during the year ended December 31, 2021.

South San Francisco Joint Ventures

On August 1, 2022, the Company entered into a master equity transaction agreement with a sovereign wealth fund (“SWF Partner”) that provides the Company the opportunity to sell up to 30% interests in certain redevelopment and future development projects owned by the Company.

Concurrently, the Company executed definitive agreements with the SWF Partner to sell a 30% interest in seven life science assets in South San Francisco, California for gross proceeds of $126 million. The Company and the SWF Partner will share in key decisions related to the planned redevelopment and operation of the assets, resulting in the Company deconsolidating the previously wholly-owned assets and recognizing its 70% share as an equity method investment.