Investments in and Advances to Joint Ventures

12 Months Ended

Dec. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

Investments in and Advances to Joint Ventures

The Company’s equity method joint ventures, which are included in Investments in and Advances to Joint Ventures in the Company’s consolidated balance sheets at December 31, 2024, are as follows:


Unconsolidated Real Estate Ventures	Partner	Effective Ownership Percentage	Operating Properties
Dividend Trust Portfolio JV LP	Chinese Institutional Investors	20.0%	10
RVIP IIIB, Deer Park, IL	Prudential	25.75	1

Condensed combined financial information of the Company’s unconsolidated joint venture investments is as follows (in thousands):


	December 31,
	2024			2023
Condensed Combined Balance Sheets
Land	$	159,567		$	180,588
Buildings		494,062			558,585
Fixtures and tenant improvements		55,526			58,626
		709,155			797,799
Less: Accumulated depreciation		(166,534	)		(187,557	)
		542,621			610,242
Construction in progress and land		352			1,616
Real estate, net		542,973			611,858
Cash and restricted cash		25,750			41,250
Receivables, net		9,660			9,847
Other assets, net		17,823			25,498
	$	596,206		$	688,453

Mortgage debt	$	426,462		$	464,255
Notes and accrued interest payable to the Company		1,894			2,627
Other liabilities		32,533			36,279
		460,889			503,161
Accumulated equity		135,317			185,292
	$	596,206		$	688,453

Company’s share of accumulated equity	$	26,016		$	35,782
Basis differentials		2,521			1,099
Deferred development fees, net of portion related to the Company’s interest		—			(136	)
Amounts payable to the Company		1,894			2,627
Investments in and advances to joint ventures, net	$	30,431		$	39,372


	For the Year Ended December 31,
	2024			2023			2022
Condensed Combined Statements of Operations
Revenues from operations	$	81,967		$	92,479		$	132,494
Expenses from operations:
Operating expenses		21,312			23,903			35,319
Impairment charges		—			—			17,550
Depreciation and amortization		26,948			32,578			46,518
Interest expense		31,811			25,601			34,055
Other (income) expense, net		6,639			10,467			12,303
		86,710			92,549			145,745
Loss before gain on disposition of real estate		(4,743	)		(70	)		(13,251	)
Gain on disposition of real estate, net		10,354			21,316			120,097
Net income attributable to unconsolidated joint ventures	$	5,611		$	21,246		$	106,846
Company’s share of equity in net income of joint ventures	$	1,465		$	4,581		$	22,262
Basis differential adjustments(A)		(1,383	)		1,996			5,630
Equity in net income of joint ventures	$	82		$	6,577		$	27,892

(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):


	For the Year Ended December 31,
	2024		2023		2022
Revenue from contracts:
Asset and property management fees	$	5.1	$	5.7	$	7.7
Leasing commissions and development fees		0.2		0.4		1.9
		5.3		6.1		9.6
Other		0.2		0.7		1.0
	$	5.5	$	6.8	$	10.6

The Company’s joint venture agreements generally include provisions whereby each partner has the right to trigger a purchase or sale of its interest in the joint venture or to initiate a purchase or sale of the properties after a certain number of years or if either party is in default of the joint venture agreements. The Company is not obligated to purchase the interests of its outside joint venture partners under these provisions.

Disposition of Joint Venture Assets

In addition to the transactions below, the Company’s joint ventures sold one, five and 16 shopping centers and land parcels for an aggregate sales price of $36.5 million, $112.2 million and $439.2 million, respectively, of which the Company’s share of the gain on sale was $0.3 million, $6.7 million and $27.0 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Disposition of Joint Venture Interests

In 2024, the Company acquired its joint venture partner’s 80% equity interest in one asset owned by the DDRM Joint Venture (Meadowmont Village, Chapel Hill, North Carolina) for $44.2 million (including the convenience shopping centers included in the Curbline Properties spin-off) and stepped up the previous 20% interest due to change in control. The transaction resulted in Gain on Change in Control of Interests of $2.7 million (Note 2). There are no remaining assets in this joint venture.

In 2022, the Company acquired its joint venture partner’s 80% equity interest in one asset owned by the DDRM Joint Venture (Casselberry Commons, Casselberry, Florida) for $35.6 million (including the portion included in the Curbline Properties spin-off) 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.

In 2022, the Company sold its 20% interest in the SAU Joint Venture to its partner 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 $42.2 million.

In 2021, one of the Company’s unconsolidated joint ventures sold its sole asset, which was a parcel of undeveloped land in Richmond Hill, Ontario. In 2023, the income tax contingencies were resolved and the Company recorded a Gain on Sale and Change in Control of Interests of $3.7 million. Subsequent to the transaction, the Company has no other investments outside the United States.

All transactions with the Company’s equity affiliates are described above.