Investments in Real Estate Partnerships (Tables)

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Schedule of Equity Method Investments [Line Items]

Business dispositions unconsolidated co-investment partnership [Table Text Block]

The following table provides a summary of consolidated shopping centers and land parcels disposed of:



	Year ended December 31,
(in thousands, except number sold data)	2018		2017	2016
Net proceeds from sale of real estate investments	$	250,445	110,015	135,161	^'(1)
Gain on sale of real estate, net of tax	$	28,343	27,432	47,321
Provision for impairment of real estate sold	$	31,041	—	1,700
Number of operating properties sold	10		6	11
Number of land parcels sold	9		9	16

⁽¹⁾ Includes cash deposits received in the previous year.

At December 31, 2018, the Company also had four properties classified as Properties held for sale on the Consolidated Balance Sheets, which have sold or are expected to sell subsequent to December 31, 2018.

Schedule of Equity Method Investments [Table Text Block]


4.	Investments in Real Estate Partnerships

The Company invests in real estate partnerships, which consist of the following:



	December 31, 2018
(in thousands)	Regency's Ownership	Number of Properties	Total Investment		Total Assets of the Partnership	The Company's Share of Net Income of the Partnership	Net Income of the Partnership
GRI - Regency, LLC (GRIR)	40.00%	70	$	189,381	1,646,448	29,614	74,139
New York Common Retirement Fund (NYC)	30.00%	6	54,250		277,626	490	2,239
Columbia Regency Retail Partners, LLC (Columbia I)	20.00%	7	13,625		141,807	1,311	6,650
Columbia Regency Partners II, LLC (Columbia II)	20.00%	13	38,110		377,121	4,673	23,367
Cameron Village, LLC (Cameron)	30.00%	1	11,169		98,633	943	3,177
RegCal, LLC (RegCal)	25.00%	7	31,235		139,844	1,542	6,167
US Regency Retail I, LLC (USAA)	20.01%	7	—		89,524	937	4,685
Other investments in real estate partnerships	9.375% - 50.00%	9	125,231		456,828	3,464	8,661
Total investments in real estate partnerships		120	$	463,001	3,227,831	42,974	129,085



	December 31, 2017
(in thousands)	Regency's Ownership	Number of Properties	Total Investment		Total Assets of the Partnership	The Company's Share of Net Income of the Partnership	Net Income of the Partnership
GRI - Regency, LLC (GRIR)	40.00%	70	$	198,521	1,656,068	27,440	69,211
New York Common Retirement Fund (NYC)	30.00%	6	53,277		284,412	686	2,757
Columbia Regency Retail Partners, LLC (Columbia I)	20.00%	6	7,057		130,836	3,620	18,233
Columbia Regency Partners II, LLC (Columbia II)	20.00%	12	13,720		329,992	1,530	7,690
Cameron Village, LLC (Cameron)	30.00%	1	11,784		99,808	850	2,917
RegCal, LLC (RegCal)	25.00%	7	27,829		138,717	1,403	5,613
US Regency Retail I, LLC (USAA)	20.01%	7	—		90,900	4,456	22,299
Other investments in real estate partnerships	50.00%	6	74,116		154,987	3,356	11,238
Total investments in real estate partnerships		115	$	386,304	2,885,720	43,341	139,958

The summarized balance sheet information for the investments in real estate partnerships, on a combined basis, is as follows:



	December 31,
(in thousands)	2018		2017
Investments in real estate, net	$	3,001,481	2,682,578
Acquired lease intangible assets, net	57,053		54,021
Other assets	169,297		149,121
Total assets	$	3,227,831	2,885,720

Notes payable	$	1,609,647	1,514,729
Acquired lease intangible liabilities, net	49,501		42,466
Other liabilities	90,577		70,498
Capital - Regency	498,852		445,068
Capital - Third parties	979,254		812,959
Total liabilities and capital	$	3,227,831	2,885,720

The following table reconciles the Company's capital recorded by the unconsolidated partnerships to the Company's investments in real estate partnerships reported in the accompanying consolidated balance sheet:



	December 31,
(in thousands)	2018			2017
Capital - Regency	$	498,852		445,068
Basis difference	(38,064		)	(37,852	)
Negative investment in USAA ⁽¹⁾	3,513			11,290
Impairment of investment in real estate partnerships	(1,300		)	(1,300	)
Restricted Gain Method deferral ⁽²⁾	—			(30,902	)
Investments in real estate partnerships	$	463,001		386,304

⁽¹⁾ The USAA partnership has distributed proceeds from debt refinancing and real estate sales in excess of Regency's carrying value of its investment resulting in a negative investment balance, which is recorded within Accounts payable and other liabilities in the Consolidated Balance Sheets.
⁽²⁾ Upon adoption of ASU 2017-05 (ASC Subtopic 610-20) on January 1, 2018, the Company recognized $30.9 million of previously deferred gains through opening retained earnings, as discussed in note 1 to the Consolidated Financial Statements.

The revenues and expenses for the investments in real estate partnerships, on a combined basis, are summarized as follows:



	Year ended December 31,
(in thousands)	2018			2017		2016
Total revenues	$	414,631		396,596		364,087
Operating expenses:
Depreciation and amortization	99,847			99,327		99,252
Operating and maintenance	66,299			58,283		52,725
General and administrative	5,697			5,582		5,342
Real estate taxes	54,119			49,904		42,813
Other operating expenses	1,003			2,923		2,356
Total operating expenses	$	226,965		216,019		202,488
Other expense (income):
Interest expense, net	73,508			73,244		69,193
Gain on sale of real estate	(16,624		)	(34,276	)	(70,907	)
Early extinguishment of debt	—			—		69
Other expense (income)	1,697			1,651		2,197
Total other expense (income)	58,581			40,619		552
Net income of the Partnerships	$	129,085		139,958		161,047
The Company's share of net income of the Partnerships	$	42,974		43,341		56,518

Acquisitions

The following table provides a summary of shopping centers and land parcels acquired through our unconsolidated real estate partnerships:



(in thousands)		Year ended December 31, 2018
Date Purchased	Property Name	City/State	Property Type	Co-investment Partner	Ownership %	Purchase Price		Debt Assumed, Net of Premiums	Intangible Assets	Intangible Liabilities
01/02/18	Ballard Blocks I	Seattle, WA	Operating	Other	49.90%	$	54,500	—	3,668	2,350
01/02/18	Ballard Blocks II	Seattle, WA	Development	Other	49.90%	4,000		—	—	—
01/05/18	The District at Metuchen	Metuchen, NJ	Operating	Columbia II	20.00%	33,830		—	3,147	1,905
05/18/18	Crossroads Commons II	Boulder, CO	Operating	Columbia I	20.00%	10,500		—	447	769
09/07/18	Ridgewood Shopping Center	Raleigh, NC	Operating	Columbia II	20.00%	45,800		10,233	3,372	2,278
12/17/18	Shoppes at Bartram Park	Jacksonville, FL	Operating ⁽¹⁾	Other	50.00%	984		—	—	—
12/14/18	Town and Country Center	Los Angeles, CA	Operating	Other	9.38%	197,248		90,000	3,255	5,650
Total property acquisitions						$	346,862	100,233	13,889	12,952
⁽¹⁾ Land parcels purchased as additions to the existing operating property.

(in thousands)		Year ended December 31, 2017
Date Purchased	Property Name	City/State	Property Type	Co-investment Partner	Ownership %	Purchase Price		Debt Assumed, Net of Premiums	Intangible Assets	Intangible Liabilities
10/11/17	Midtown East	Raleigh, NC	Development	Other	50.00%	$	15,075	—	—	—
Total property acquisitions						$	15,075	—	—	—

Dispositions

The following table provides a summary of shopping centers and land parcels disposed of through our unconsolidated real estate partnerships:



	Year ended December 31,
(in thousands)	2018		2017	2016
Proceeds from sale of real estate investments	$	27,144	73,122	174,090
Gain on sale of real estate	$	16,624	34,276	70,907
The Company's share of gain on sale of real estate	$	3,608	6,591	25,003
Number of operating properties sold	1		3	10
Number of land out-parcels sold	2		1	1

Notes Payable

Scheduled principal repayments on notes payable held by our unconsolidated investments in real estate partnerships as of December 31, 2018 were as follows:



Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities		Unsecured Maturities	Total		Regency’s Pro-Rata Share
2019	$	20,062	65,939		—	86,001		22,294
2020	17,043		326,583		—	343,626		101,841
2021	11,048		269,942		19,635	300,625		104,375
2022	7,811		170,702		—	178,513		68,417
2023	2,989		171,608		—	174,597		65,096
Beyond 5 Years	7,353		529,637		—	536,990		175,032
Net unamortized loan costs, debt premium / (discount)	—		(10,705	)	—	(10,705	)	(3,082	)
Total notes payable	$	66,306	1,523,706		19,635	1,609,647		533,973

These fixed and variable rate loans are all non-recourse, and mature through 2034, with 92.4% having a weighted average fixed interest rate of 4.6%. The remaining notes payable float over LIBOR and had a weighted average variable interest rate of 4.6% at December 31, 2018. Maturing loans will be repaid from proceeds from refinancing, partner capital contributions, or a combination thereof. The Company is obligated to contribute its pro-rata share to fund maturities if the loans are not refinanced, and it has the capacity to do so from existing cash balances, availability on its line of credit, and operating cash flows. The Company believes that its partners are financially sound and have sufficient capital or access thereto to fund future capital requirements. In the event that a co-investment partner was unable to fund its share of the capital requirements of the co-investment partnership, the Company would have the right, but not the obligation, to loan the defaulting partner the amount of its capital call.

Management fee income

In addition to earning our pro-rata share of net income or loss in each of these co-investment partnerships, we receive fees, as follows:



	Year ended December 31,
(in thousands)	2018		2017	2016
Asset management, property management, leasing, and investment and financing services	$	27,873	25,260	24,595

Unconsolidated Properties [Member]

Schedule of Equity Method Investments [Line Items]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]



(in thousands)		Year ended December 31, 2018
Date Purchased	Property Name	City/State	Property Type	Co-investment Partner	Ownership %	Purchase Price		Debt Assumed, Net of Premiums	Intangible Assets	Intangible Liabilities
01/02/18	Ballard Blocks I	Seattle, WA	Operating	Other	49.90%	$	54,500	—	3,668	2,350
01/02/18	Ballard Blocks II	Seattle, WA	Development	Other	49.90%	4,000		—	—	—
01/05/18	The District at Metuchen	Metuchen, NJ	Operating	Columbia II	20.00%	33,830		—	3,147	1,905
05/18/18	Crossroads Commons II	Boulder, CO	Operating	Columbia I	20.00%	10,500		—	447	769
09/07/18	Ridgewood Shopping Center	Raleigh, NC	Operating	Columbia II	20.00%	45,800		10,233	3,372	2,278
12/17/18	Shoppes at Bartram Park	Jacksonville, FL	Operating ⁽¹⁾	Other	50.00%	984		—	—	—
12/14/18	Town and Country Center	Los Angeles, CA	Operating	Other	9.38%	197,248		90,000	3,255	5,650
Total property acquisitions						$	346,862	100,233	13,889	12,952
⁽¹⁾ Land parcels purchased as additions to the existing operating property.

(in thousands)		Year ended December 31, 2017
Date Purchased	Property Name	City/State	Property Type	Co-investment Partner	Ownership %	Purchase Price		Debt Assumed, Net of Premiums	Intangible Assets	Intangible Liabilities
10/11/17	Midtown East	Raleigh, NC	Development	Other	50.00%	$	15,075	—	—	—
Total property acquisitions						$	15,075	—	—	—

Business dispositions unconsolidated co-investment partnership [Table Text Block]

Dispositions

The following table provides a summary of shopping centers and land parcels disposed of through our unconsolidated real estate partnerships:



	Year ended December 31,
(in thousands)	2018		2017	2016
Proceeds from sale of real estate investments	$	27,144	73,122	174,090
Gain on sale of real estate	$	16,624	34,276	70,907
The Company's share of gain on sale of real estate	$	3,608	6,591	25,003
Number of operating properties sold	1		3	10
Number of land out-parcels sold	2		1	1

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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