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NOTES RECEIVABLE
 27 Months Ended
Sep. 30, 2012
NOTES RECEIVABLE

4. NOTES RECEIVABLE

Notes receivable consist of the following (in millions):

 

     September 30, 2012      December 31, 2011  

Loans receivable (A)

    $ 54.8       $ 84.5   

Other notes

      3.1         3.0   

Tax Increment Financing Bonds (“TIF Bonds”) (B)

      5.2         6.4   
  

 

 

     

 

 

  
   $ 63.1       $ 93.9   
  

 

 

     

 

 

  

 

(A) 

Amounts exclude notes receivable and advances to unconsolidated joint ventures including those that were in default and reserved at September 30, 2012 and December 31, 2011.
(B) 

Principal and interest are payable solely from the incremental real estate taxes, if any, generated by the respective shopping center and development project pursuant to the terms of the financing agreement.

As of September 30, 2012 and December 31, 2011, the Company had five and six loans receivable outstanding, respectively, with total remaining non-discretionary commitments of $2.1 million and $6.0 million, respectively. The following table reconciles the loans receivable on real estate for the nine-month periods ended September 30, 2012 and 2011 (in thousands):

 

     2012     2011  

Balance at January 1

    $ 84,541     $ 103,705  

Additions:

     

New mortgage loans

      592       10,000  

Interest

      790       811  

Accretion of discount

      615       580  

Deductions:

     

Payment of principal

      —          (6,825 ) 

Loan loss reserve

      —          (5,000 ) 

Other(A)

      (31,700 )      —     
  

 

 

    

 

 

  

Balance at September 30

    $ 54,838     $ 103,271  
  

 

 

    

 

 

  

 

(A) 

Loan assumed by the Company’s unconsolidated joint venture BRE DDR Retail Holdings, LLC and included in Investments in and Advances to Joint Ventures in the Company’s consolidated condensed balance sheet at September 30, 2012.

The Company maintains a subordinated loan receivable with a carrying value of $10.8 million that was fully reserved at September 30, 2012 and December 31, 2011. Interest income is no longer being recorded on this loan. At September 30, 2012, this note was more than 90 days past due on principal and interest.

In addition, at September 30, 2012, the Company had one loan aggregating $9.8 million that matured in September 2011 and was more than 90 days past due. The Company is no longer recording interest income on this note. A loan loss reserve on the principal amount outstanding has not been established based on the estimated value of the underlying real estate collateral.