Investments in and Advances to Joint Ventures

6 Months Ended

Jun. 30, 2022

Equity Method Investments And Joint Ventures [Abstract]

Investments in and Advances to Joint Ventures

At June 30, 2022 and December 31, 2021, the Company had ownership interests in various unconsolidated joint ventures that had investments in 33 and 47 shopping center properties, respectively. Condensed combined financial information of the Company’s unconsolidated joint venture investments is as follows (in thousands):


	June 30, 2022			December 31, 2021
Condensed Combined Balance Sheets
Land	$	324,205		$	378,442
Buildings		942,906			1,092,245
Fixtures and tenant improvements		115,060			123,313
		1,382,171			1,594,000
Less: Accumulated depreciation		(374,938	)		(441,215	)
		1,007,233			1,152,785
Construction in progress and land		1,137			5,778
Real estate, net		1,008,370			1,158,563
Cash and restricted cash		37,342			37,535
Receivables, net		16,099			16,854
Other assets, net		49,471			49,029
	$	1,111,282		$	1,261,981

Mortgage debt	$	772,696		$	873,336
Notes and accrued interest payable to the Company		3,370			3,331
Other liabilities		47,382			51,473
		823,448			928,140
Accumulated equity		287,834			333,841
	$	1,111,282		$	1,261,981

Company's share of accumulated equity	$	56,526		$	59,286
Basis differentials		(6,012	)		2,946
Deferred development fees, net of portion related to the Company's interest		(859	)		(937	)
Amounts payable to the Company		3,370			3,331
Investments in and Advances to Joint Ventures, net	$	53,025		$	64,626


	Three Months					Six Months
	Ended June 30,					Ended June 30,
	2022			2021		2022			2021
Condensed Combined Statements of Operations
Revenues from operations	$	38,162		$	51,397	$	79,811		$	101,957
Expenses from operations:
Operating expenses		10,493			13,869		22,016			28,286
Impairment charges		3,340			—		8,540			—
Depreciation and amortization		13,328			16,587		27,673			33,704
Interest expense		9,030			10,971		18,319			21,918
Other expense, net		2,422			3,010		4,994			5,974
		38,613			44,437		81,542			89,882
(Loss) income before gain on disposition of real estate		(451	)		6,960		(1,731	)		12,075
Gain on disposition of real estate, net		1,790			8,186		1,692			36,587
Net income (loss) attributable to unconsolidated joint ventures	$	1,339		$	15,146	$	(39	)	$	48,662
Company's share of equity in net income of joint ventures	$	592		$	3,814	$	622		$	8,137
Basis differential adjustments(A)		789			1,036		928			1,098
Equity in net income of joint ventures	$	1,381		$	4,850	$	1,550		$	9,235

(A)

The difference between the Company’s share of net income, as reported above, and the amounts included in the Company’s consolidated statements of operations is attributable to the amortization of basis differentials, the recognition of deferred gains, differences in gain (loss) on sale of certain assets recognized due to the basis differentials and other than temporary impairment charges.

The impact of the COVID-19 pandemic on revenues and receivables for the Company’s joint ventures is more fully described in Note 2.

Revenues earned by the Company related to all of the Company’s unconsolidated joint ventures are as follows (in millions):


	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2022		2021		2022		2021
Revenue from contracts:
Asset and property management fees	$	2.2	$	2.6	$	4.5	$	5.2
Leasing commissions and development fees		0.6		0.5		1.0		0.9
		2.8		3.1		5.5		6.1
Other		0.2		0.4		0.6		0.8
	$	3.0	$	3.5	$	6.1	$	6.9

Disposition of Shopping Centers and Joint Venture Interests

In the first quarter of 2022, the Company acquired its partner’s 80% interest in one asset owned by the DDRM Properties Joint Venture (Casselberry Commons, Casselberry, Florida) for $35.6 million, and stepped up the previous 20% interest due to change in control. The transaction resulted in Gain on Change in Control of Interests of $3.3 million (Note 4).

In the second quarter of 2022, the Company sold its 20% interest in the SAU Joint Venture to its partner, the State of Utah, based on a gross asset value of $155.7 million (at 100%). In addition, the Company sold its 50% interest in Lennox Town Center to its partner, based on a gross asset value of $77.0 million (at 100%). These transactions resulted in Gain on Sale of Interests of $42.0 million.

In addition, in the second quarter of 2022, the DDRM Properties Joint Venture sold one shopping center for a sales price of $13.0 million ($2.6 million at the Company’s share) of which the Company’s share of the gain on sale was $0.4 million.