Equity Investments in Unconsolidated Joint Ventures

We have four joint venture agreements whereby we own between 7% and 30% of the equity in the joint venture. We and the joint venture partners have joint approval rights for major decisions, including those regarding property operations. We cannot make significant decisions without our partner’s approval. Accordingly, we account for our interest in the joint ventures using the equity method of accounting.

The combined condensed financial information for our unconsolidated joint ventures is summarized as follows:



Balance Sheets	March 31, 2015		December 31, 2014
	(In thousands)
ASSETS
Income producing properties, net	$	373,398	$	394,740
Cash, accounts receivable and other assets	21,529		23,102
Total Assets	$	394,927	$	417,842
LIABILITIES AND OWNERS' EQUITY
Mortgage notes payable	$	169,928	$	170,194
Other liabilities	6,284		7,625
Owners' equity	218,715		240,023
Total Liabilities and Owners' Equity	$	394,927	$	417,842

RPT's equity investments in unconsolidated joint ventures	$	22,512	$	28,733

As of March 31, 2015, we had investments in the following unconsolidated joint ventures:



	Ownership as of	Total Assets as of		Total Assets as of
	March 31,	March 31,		December 31,
Unconsolidated Entities	2015	2015		2014
		(In thousands)
Ramco 450 Venture LLC	20%	$	281,463	$	283,100
Ramco/Lion Venture LP	30%	68,526		89,091
Other Joint Ventures	(1)	44,938		45,651
		$	394,927	$	417,842

⁽¹⁾ Includes two joint ventures in which we have a 7% ownership interest. Each joint venture owns one property.



	Three Months Ended March 31,
Statements of Operations	2015			2014
	(In thousands)
Total revenue	$	10,625		$	10,924
Total expenses⁽¹⁾	7,296			17,926
Income (loss) before other income, expense, and discontinued operations	3,329			(7,002		)
Interest expense	(1,793		)	(1,875		)
Gain on extinguishment of debt	—			529
Amortization of deferred financing fees	(74		)	(75		)
Gain on sale of real estate ⁽²⁾	7,463			—
Net income (loss)	$	8,925		$	(8,423	)

RPT's share of earnings (loss) from unconsolidated joint ventures	$	2,660		$	(1,535	)


⁽¹⁾	The higher expenses for the three months ended March 31, 2014 were due to the demolition of a portion of a center for redevelopment and the commensurate acceleration of depreciation in that period.


⁽²⁾	See dispositions below for details of the transaction.

Acquisitions

There was no acquisition activity in the three months ended March 31, 2015 and 2014 by any of our unconsolidated joint ventures.

Dispositions

During the quarter we sold our 30% interest in the Village of Oriole Plaza, a 156,000 square foot shopping center located in Delray Beach, Florida, for $8.3 million to our joint venture partner.

Debt

Our unconsolidated joint ventures had the following debt outstanding at March 31, 2015:



	Balance
Entity Name	Outstanding
	(In thousands)
Ramco 450 Venture LLC⁽¹⁾	$	140,157
Ramco/Lion Venture LP ⁽²⁾	29,840
	169,997
Unamortized premium	(69		)
Total mortgage debt⁽³⁾	$	169,928


⁽¹⁾	Maturities range from October 2015 to September 2023 with interest rates ranging from 1.9% to 5.8%.


⁽²⁾	Balance relates to Millennium Park’s mortgage loan which has a maturity date of October 2015 with a 5.0% interest rate.


⁽³⁾	Debt is non-recourse to the ventures, subject to carve-outs customary to such types of mortgage financing.

Joint Venture Management and Other Fee Income

We are engaged by our joint ventures to provide asset management, property management, leasing and investing services for such venture’s respective properties. We receive fees for our services, including a property management fee calculated as a percentage of gross revenues received, and recognize these fees as the services are rendered.

The following table provides information for our fees earned which are reported in our condensed consolidated statements of operations:



	Three Months Ended March 31,
	2015		2014
	(In thousands)
Management fees	$	399	$	399
Leasing fees	120		59
Construction fees	13		52
Total	$	532	$	510