Investments in and Advances to Joint Ventures

9 Months Ended

Sep. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Investments in and Advances to Joint Ventures

At September 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):


	September 30, 2023			December 31, 2022
Condensed Combined Balance Sheets
Land	$	180,588		$	212,326
Buildings		556,898			643,334
Fixtures and tenant improvements		55,500			70,636
		792,986			926,296
Less: Accumulated depreciation		(181,799	)		(220,642	)
		611,187			705,654
Construction in progress and land		1,012			1,965
Real estate, net		612,199			707,619
Cash and restricted cash		51,363			44,809
Receivables, net		9,054			11,671
Other assets, net		29,051			36,272
	$	701,667		$	800,371

Mortgage debt	$	466,631		$	535,093
Notes and accrued interest payable to the Company		2,759			2,972
Other liabilities		38,469			41,588
		507,859			579,653
Accumulated equity		193,808			220,718
	$	701,667		$	800,371

Company's share of accumulated equity	$	37,442		$	42,644
Basis differentials		762			(707	)
Deferred development fees, net of portion related to the Company's interest		(133	)		(301	)
Amounts payable to the Company		2,759			2,972
Investments in and Advances to Joint Ventures, net	$	40,830		$	44,608


	Three Months					Nine Months
	Ended September 30,					Ended September 30,
	2023		2022			2023		2022
Condensed Combined Statements of Operations
Revenues from operations	$	21,682	$	25,855		$	70,442	$	105,666
Expenses from operations:
Operating expenses		5,552		6,975			18,234		28,991
Impairment charges		—		9,010			—		17,550
Depreciation and amortization		7,806		9,450			25,149		37,123
Interest expense		5,668		8,241			19,016		26,560
Other expense, net		2,084		6,120			7,022		11,114
		21,110		39,796			69,421		121,338
Income (loss) before gain on disposition of real estate		572		(13,941	)		1,021		(15,672	)
Gain on disposition of real estate, net		973		119,813			21,151		121,505
Net income attributable to unconsolidated joint ventures	$	1,545	$	105,872		$	22,172	$	105,833
Company's share of equity in net income of joint ventures	$	491	$	21,276		$	4,677	$	21,898
Basis differential adjustments(A)		27		4,642			1,818		5,570
Equity in net income of joint ventures	$	518	$	25,918		$	6,495	$	27,468

(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				Nine Months
	Ended September 30,				Ended September 30,
	2023		2022		2023		2022
Revenue from contracts:
Asset and property management fees	$	1.4	$	1.7	$	4.4	$	6.2
Leasing commissions and development fees		0.1		0.6		0.4		1.6
		1.5		2.3		4.8		7.8
Other		0.1		0.2		0.4		0.8
	$	1.6	$	2.5	$	5.2	$	8.6

Disposition of Shopping Centers

During the nine months ended September 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 of Interests of $3.7 million.

In 2022, the Company acquired its joint venture 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. For the year ended December 31, 2022, these transactions aggregated a Gain on Sale and Change in Control of Interests of $45.5 million.