Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2022

Variable Interest Entities [Abstract]

The classification of the related assets and liabilities and the maximum loss exposure as a result of the Company’s involvement with these VIEs at September 30, 2022 was as follows (in thousands):

VIE Type

Asset Type

Maximum Loss

Exposure

and Carrying

Amount(1)

CMBS and LLC investment

Other assets, net

36,775

Needham Land Parcel JV

Investments in and advances to unconsolidated joint ventures

15,342

_______________________________________

(1)The Company’s maximum loss exposure represents the aggregate carrying amount of such investments (including accrued interest).

Consolidated Assets and Liabilities of Variable Interest Entities

Total assets and total liabilities include VIE assets and liabilities as follows (in thousands):


	September 30, 2022		December 31, 2021
Assets
Buildings and improvements	$	2,204,074	$	2,303,920
Development costs and construction in progress	162,658		82,303
Land	324,444		548,168
Accumulated depreciation and amortization	(598,285)		(551,097)
Net real estate	2,092,891		2,383,294

Accounts receivable, net	8,211		5,455
Cash and cash equivalents	38,152		22,295
Restricted cash	260		114
Intangible assets, net	78,458		117,180
Assets held for sale and discontinued operations, net	30,398		754
Right-of-use asset, net	99,824		107,993
Other assets, net	66,904		62,886
Total assets	$	2,415,098	$	2,699,971
Liabilities
Mortgage debt	$	144,533	$	144,350

Intangible liabilities, net	15,926		23,909
Liabilities related to assets held for sale and discontinued operations, net	2,020		1,677
Lease liability	98,855		99,213
Accounts payable, accrued liabilities, and other liabilities	76,685		58,440
Deferred revenue	26,872		21,546
Total liabilities	$	364,891	$	349,135

Total assets and liabilities related to assets held for sale and discontinued operations include VIE assets and liabilities as follows (in thousands):


	September 30, 2022		December 31, 2021
Assets
Buildings and improvements	$	39,934	$	—
Development costs and construction in progress	6		—
Land	1,920		—
Accumulated depreciation and amortization	(15,612)		—
Net real estate	26,248		—
Accounts receivable, net	—		62
Cash and cash equivalents	82		59

Intangible assets, net	215		—

Other assets, net	3,853		633
Total assets	$	30,398	$	754
Liabilities



Accounts payable, accrued liabilities, and other liabilities	$	1,619	$	1,677
Deferred revenue	401		—
Total liabilities	$	2,020	$	1,677

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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