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Investments in Unconsolidated Joint Ventures
 6 Months Ended
Jun. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Joint Ventures Investments in UJVs

General Information

We own beneficial interests in joint ventures that own shopping centers. TRG is the sole direct or indirect managing general partner or managing member of Fair Oaks Mall, International Plaza, Stamford Town Center, Sunvalley, The Mall at University Town Center, and Westfarms; however, these joint ventures are accounted for under the equity method due to the substantive participation rights of the outside partners. TRG also provides certain management, leasing, and/or development services to the other shopping centers noted below.
Shopping Center
 
Ownership as of
June 30, 2020 and
December 31, 2019
CityOn.Xi'an (1)
 
25% / 50%
CityOn.Zhengzhou
 
24.5
Country Club Plaza
 
50
Fair Oaks Mall
 
50
The Gardens Mall
 
48.5
International Plaza
 
50.1
The Mall at Millenia
 
50
Stamford Town Center
 
50
Starfield Anseong (under development)
 
Note 2
Starfield Hanam
 
17.15
Sunvalley
 
50
The Mall at University Town Center
 
50
Waterside Shops
 
50
Westfarms
 
79


(1)
In February 2020, we completed the sale of 50% of our interest in CityOn.Xian (Note 2).

The carrying value of our investment in UJVs differs from our share of the partnership or members’ equity reported on the combined balance sheet of the UJVs due to (i) the cost of our investment in excess of the historical net book values of the UJVs and (ii) TRG’s adjustments to the book basis, including intercompany profits on sales of services that are capitalized by the UJVs. Our additional basis allocated to depreciable assets is generally recognized on a straight-line basis over 40 years. TRG’s differences in bases are amortized over the useful lives or terms of the related assets and liabilities.

On our Consolidated Balance Sheet, we separately report our investment in UJVs for which accumulated distributions have exceeded investments in and net income of the UJVs. The net equity of certain joint ventures is less than zero because distributions are usually greater than net income, as net income includes non-cash charges for depreciation and amortization. In addition, any distributions related to refinancing of the centers further decrease the net equity of the shopping centers.
Combined Financial Information

Combined balance sheet and results of operations information is presented in the following table for our UJVs, followed by TRG's beneficial interest in the combined operations information. The combined financial information of the UJVs as of June 30, 2020 and December 31, 2019 excludes the balances of Starfield Anseong, which is currently under development (Note 2). Beneficial interest is calculated based on TRG's ownership interest in each of the UJVs.
 
June 30,
2020
 
December 31,
2019
Assets:
 
 
 
Properties
$
3,791,076

 
$
3,816,923

Accumulated depreciation and amortization
(985,484
)
 
(942,840
)
 
$
2,805,592

 
$
2,874,083

Cash and cash equivalents
174,421

 
201,501

Accounts and notes receivable
150,095

 
122,569

Operating lease right-of-use assets
12,537

 
11,521

Deferred charges and other assets
159,056

 
178,708

 
$
3,301,701

 
$
3,388,382

 
 
 
 
Liabilities and accumulated equity (deficiency) in assets:
 

 
 

Notes payable, net  (1)
$
3,093,353

 
$
3,049,737

Accounts payable and other liabilities
241,325

 
341,263

Operating lease liabilities
14,286

 
13,274

TRG's accumulated deficiency in assets
(250,658
)
 
(212,380
)
UJV Partners' accumulated equity in assets
203,395

 
196,488

 
$
3,301,701

 
$
3,388,382

 
 
 
 
TRG's accumulated deficiency in assets (above)
$
(250,658
)
 
$
(212,380
)
TRG's investment in Starfield Anseong (Note 2) and advances to CityOn.Zhengzhou
204,177

 
209,024

TRG basis adjustments, including elimination of intercompany profit
334,527

 
329,673

TCO's additional basis
31,924

 
32,625

Net investment in UJVs
$
319,970

 
$
358,942

Distributions in excess of investments in and net income of UJVs
470,166

 
473,053

Investment in UJVs
$
790,136

 
$
831,995


(1) The Notes Payable, Net amount excludes the construction financing outstanding for Starfield Anseong of $127.2 million ($62.3 million at TRG's share) as of June 30, 2020.

 
Three Months Ended June 30
 
Six Months Ended June 30
 
2020
 
2019
 
2020
 
2019
Revenues
$
120,436

 
$
154,385

 
$
268,419

 
$
297,026

Maintenance, taxes, utilities, promotion, and other operating expenses
$
51,162

 
$
56,535

 
$
105,524

 
$
104,410

Interest expense
35,045

 
36,213

 
70,230

 
68,711

Depreciation and amortization
30,470

 
33,669

 
61,730

 
66,640

Total operating costs
$
116,677

 
$
126,417

 
$
237,484

 
$
239,761

Nonoperating income, net
600

 
923

 
1,142

 
1,324

Income tax expense
(2,167
)
 
(1,967
)
 
(4,267
)
 
(3,646
)
Net income
$
2,192

 
$
26,924

 
$
27,810

 
$
54,943

 
 
 
 
 
 
 
 
Net income attributable to TRG
$
1,221

 
$
14,155

 
$
13,632

 
$
28,448

Realized intercompany profit, net of depreciation on TRG’s basis adjustments
(1,583
)
 
1,152

 
(2,359
)
 
2,018

Depreciation of TCO's additional basis
(350
)
 
(485
)
 
(701
)
 
(972
)
Equity in income (loss) of UJVs
$
(712
)
 
$
14,822

 
$
10,572

 
$
29,494

 
 
 
 
 
 
 
 
Beneficial interest in UJVs’ operations:
 

 
 

 
 

 
 

Revenues less maintenance, taxes, utilities, promotion, and other operating expenses
$
31,001

 
$
52,693

 
$
75,394

 
$
102,110

Interest expense
(15,945
)
 
(18,005
)
 
(32,360
)
 
(34,781
)
Depreciation and amortization
(15,636
)
 
(18,954
)
 
(32,033
)
 
(36,146
)
Income tax expense
(132
)
 
(912
)
 
(429
)
 
(1,689
)
Equity in income (loss) of UJVs
$
(712
)
 
$
14,822

 
$
10,572

 
$
29,494



Related Party

We have a note receivable outstanding with CityOn.Zhengzhou, which was originally issued to fund development costs. The balance of the note receivable was $42.4 million and $43.1 million as of June 30, 2020 and December 31, 2019, respectively, and is classified within Investment in UJVs on our Consolidated Balance Sheet.

Stamford Town Center

Stamford Town Center is currently being marketed for sale. In December 2019, we concluded that the carrying value of our 50% interest in the investment in the UJV that owns Stamford Town Center was impaired and recognized an impairment charge of $18.0 million within Equity in Income (Loss) of UJVs on our Consolidated Statement of Operations and Comprehensive Income (Loss). The charge represented the excess of the book value of our equity investment in Stamford Town Center over our 50% share of its fair value. Our fair value conclusion was based on offers received from potential buyers of the shopping center.