Investments in and Advances to Joint Ventures

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Investments in and Advances to Joint Ventures

At June 30, 2023 and December 31, 2022, the Company had ownership interests in various unconsolidated joint ventures that had investments in 13 and 18 shopping center properties, respectively. Condensed combined financial information of the Company’s unconsolidated joint venture investments is as follows (in thousands):


	June 30, 2023			December 31, 2022
Condensed Combined Balance Sheets
Land	$	180,588		$	212,326
Buildings		556,088			643,334
Fixtures and tenant improvements		54,418			70,636
		791,094			926,296
Less: Accumulated depreciation		(175,989	)		(220,642	)
		615,105			705,654
Construction in progress and land		127			1,965
Real estate, net		615,232			707,619
Cash and restricted cash		44,873			44,809
Receivables, net		9,450			11,671
Other assets, net		31,501			36,272
	$	701,056		$	800,371

Mortgage debt	$	466,500		$	535,093
Notes and accrued interest payable to the Company		2,786			2,972
Other liabilities		39,099			41,588
		508,385			579,653
Accumulated equity		192,671			220,718
	$	701,056		$	800,371

Company's share of accumulated equity	$	37,057		$	42,644
Basis differentials		829			(707	)
Deferred development fees, net of portion related to the Company's interest		(116	)		(301	)
Amounts payable to the Company		2,786			2,972
Investments in and Advances to Joint Ventures, net	$	40,556		$	44,608


	Three Months					Six Months
	Ended June 30,					Ended June 30,
	2023		2022			2023		2022
Condensed Combined Statements of Operations
Revenues from operations	$	24,070	$	38,162		$	48,760	$	79,811
Expenses from operations:
Operating expenses		6,118		10,493			12,682		22,016
Impairment charges		—		3,340			—		8,540
Depreciation and amortization		8,281		13,328			17,343		27,673
Interest expense		6,307		9,030			13,348		18,319
Other expense, net		2,378		2,422			4,938		4,994
		23,084		38,613			48,311		81,542
Income (loss) before gain on disposition of real estate		986		(451	)		449		(1,731	)
Gain on disposition of real estate, net		14,874		1,790			20,178		1,692
Net income (loss) attributable to unconsolidated joint ventures	$	15,860	$	1,339		$	20,627	$	(39	)
Company's share of equity in net income of joint ventures	$	3,237	$	592		$	4,187	$	622
Basis differential adjustments(A)		1,381		789			1,790		928
Equity in net income of joint ventures	$	4,618	$	1,381		$	5,977	$	1,550

(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 and differences in gain (loss) on sale of certain assets recognized due to the basis differentials.

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,
	2023		2022		2023		2022
Revenue from contracts:
Asset and property management fees	$	1.5	$	2.2	$	3.0	$	4.5
Leasing commissions and development fees		0.1		0.6		0.2		1.0
		1.6		2.8		3.2		5.5
Other		0.1		0.2		0.3		0.6
	$	1.7	$	3.0	$	3.5	$	6.1

Disposition of Shopping Centers

During the six months ended June 30, 2023, the DDRM Joint Venture sold five shopping centers for an aggregate sales price of $112.2 million ($22.4 million at the Company’s share). The proceeds were used to repay mortgage indebtedness of the joint venture, general corporate purposes of the joint venture and distributions to the partners.

Disposition of Joint Venture Interests

In 2021, one of the Company’s unconsolidated joint ventures sold its sole asset, a parcel of undeveloped land. The transaction had contingent proceeds based upon finalization of the tax returns and dissolution of the partnership. In the first quarter of 2023, the contingencies were resolved and the Company recorded a Gain on Sale and Change in Control of Interests of $3.7 million.

In 2022, the Company acquired its partner’s 80% interest in one asset owned by the DDRM Properties Joint Venture (Casselberry Commons, Casselberry, Florida) and stepped up the previous 20% interest due to change in control, sold its 20% interest in the SAU Joint Venture to its partner, the State of Utah and sold its 50% interest in Lennox Town Center to its partner. These transactions aggregated a Gain on Sale and Change in Control of Interests of $45.3 million.