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Investments in and Advances to Unconsolidated Affiliates (Tables)

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

The Company’s investments in and advances to unconsolidated affiliates consist of the following (dollars in thousands):


		Ownership Interest	December 31,		December 31,
Portfolio	Property	December 31, 2022	2022		2021

Core:	840 N. Michigan Avenue (a,h)	88.43%	$	—	$	51,513
	Renaissance Portfolio	20%		28,755		28,466
	Gotham Plaza	49%		30,112		29,187
	Georgetown Portfolio (b)	50%		4,048		4,089
	1238 Wisconsin Avenue (b, c)	80%		14,502		5,895
				77,417		119,150

Mervyns II:	KLA/ABS (d)	36.7%		85,403		124,316

Fund III:	Self Storage Management (b)	0%		—		207
	640 Broadway (e)	100%		—		17,825
				—		18,032

Fund IV:	Fund IV Other Portfolio	98.57%		7,914		12,675
	650 Bald Hill Road	90%		10,203		11,677
	Paramus Plaza	50%		936		1,975
				19,053		26,327

Fund V:	Family Center at Riverdale (a)	89.42%		4,995		12,449
	Tri-City Plaza	90%		8,422		6,827
	Frederick County Acquisitions	90%		12,240		10,748
	Wood Ridge Plaza	90%		12,751		—
	La Frontera Village	90%		20,803		—
	Shoppes at South Hills (f)	90%		44,677		—
	Mohawk Commons	90%		775		—
				104,663		30,024

Various:	Due from (to) Related Parties			305		666
	Other (g)			4,315		3,811
	Investments in and advances to unconsolidated affiliates		$	291,156	$	322,326

Core:	Crossroads (h)	49%	$	8,832	$	9,939
	840 N. Michigan Avenue (a, h)	88.43%	$	1,673		—
	Distributions in excess of income from, and investments in, unconsolidated affiliates		$	10,505	$	9,939

Represents a tenancy-in-common interest.

Represents a VIE for which the Company is not the primary beneficiary (Note 16).

Includes a $12.8 million construction commitment from the Company to the venture that holds its investment in 1238 Wisconsin. As of December 31, 2022 and 2021 the note receivable from a related party had a balance of $7.5 million, net of CECL allowance of $0.1 million, and zero, respectively. The loan is collateralized by the venture members' equity interest, bears interest at Prime + 1.0% subject to a 4.5% floor, and matures on December 28, 2023. Interest is recognized over the life of the loan.

Mervyns II has retained an effective indirect ownership of approximately 4.1 million shares (approximately 1% interest) through its Investment in Albertsons Companies Inc. ("Albertsons"), which is accounted for at fair value (Note 8). On October 13, 2022, Albertsons entered into a merger agreement with Kroger, that is expected to close in 2024. As part of the transaction, Albertsons announced it will pay a $6.85 per common share Special Dividend (the “Special Dividend”) payable on November 7, 2022,

to stockholders of record as of October 24, 2022, which Albertsons was prohibited from paying under a temporary restraining order until January 2023 (Note 17). In addition, the entity that holds the shares of Albertsons extended the expiration of lockup through May 2023.

In January 2022, the Company, through an affiliate of Fund III, foreclosed on partner's interest and now owns 100% and consolidates the entity (Note 2).

Includes a $31.7 million bridge loan from the Company to the venture that holds the property in its investment in Shoppes at South Hills. As of December 31, 2022 and 2021 the note receivable from a related party had a balance of $31.7 million, net of CECL allowance of $0.2 million, and zero, respectively. The loan bears interest at 8.0% and matures on February 6, 2023. Interest is recognized over the life of the loan. The loan was refinanced with a third-party lender in February 2023 (Note 17).

Includes cost-method investments in Storage Post, Fifth Wall, and other investments.

Distributions have exceeded the Company’s investment; however, the Company recognizes a liability balance as it may elect to contribute capital to the entity.

Schedule of Combined and Condensed Balance Sheet

The following combined and condensed Balance Sheets and Statements of operations, in each period, summarize the financial information of the Company’s investments in unconsolidated affiliates that were held as of December 31, 2022, and accordingly exclude the results of any investments disposed of or consolidated prior to that date (in thousands):


	December 31,		December 31,
	2022		2021
Combined and Condensed Balance Sheets
Assets:
Rental property, net	$	650,997	$	631,661
Real estate under development		17,359		8,112
Other assets		127,070		78,300
Total assets	$	795,426	$	718,073
Liabilities and partners’ equity:
Mortgage notes payable	$	609,923	$	571,461
Other liabilities		96,532		69,166
Partners’ equity		88,971		77,446
Total liabilities and partners’ equity	$	795,426	$	718,073

Company's share of accumulated equity	$	131,878	$	113,285
Basis differential		52,813		66,031
Deferred fees, net of portion related to the Company's interest		5,937		4,071
Amounts receivable/payable by the Company		305		666
Investments in and advances to unconsolidated affiliates, net of Company's share of distributions in excess of income from and investments in unconsolidated affiliates		190,933		184,053
Investments carried at fair value or cost		89,718		128,334
Company's share of distributions in excess of income from and investments in unconsolidated affiliates		10,505		9,939
Investments in and advances to unconsolidated affiliates	$	291,156	$	322,326

Schedule of Combined and Condensed Income Statement


	Year Ended December 31,
	2022			2021			2020
Combined and Condensed Statements of Operations
Total revenues	$	96,080		$	80,823		$	78,054
Operating and other expenses		(29,858	)		(28,572	)		(28,718	)
Interest expense		(26,807	)		(21,228	)		(22,651	)
Depreciation and amortization		(34,596	)		(30,518	)		(30,917	)
Loss on extinguishment of debt		(7	)		(35	)		—
Impairment of Investment (a)		(57,423	)		—			—
Gain on disposition of properties (b)		12,983			3,206			—
Net (loss) income attributable to unconsolidated affiliates	$	(39,628	)	$	3,676		$	(4,232	)

Company’s share of equity in net (loss) income of unconsolidated affiliates	$	(31,907	)	$	6,023		$	(2,503	)
Income attributable to unconsolidated affiliates recently sold or consolidated		—			—		$	1,280
Basis differential amortization		(1,000	)		(693	)		(1,834	)
Company’s equity in (losses) earnings of unconsolidated affiliates	$	(32,907	)	$	5,330		$	(3,057	)

Represents the impairment charge related to 840 N. Michigan Avenue for the year ended December 31, 2022.

Represents the gain on the sale of Promenade at Manassas on October 13, 2022, and two land parcels by the Family Center at Riverdale on January 4, 2021.