Investments in Unconsolidated Joint Ventures

3 Months Ended

Mar. 31, 2020

Joint Venture

Schedule of Equity Method Investments [Line Items]

Investments in Unconsolidated Joint Ventures

Investments in Unconsolidated Joint Ventures:

The Company has made the following recent financings of its unconsolidated joint ventures:

On July 25, 2019, the Company's joint venture in Fashion District Philadelphia amended the existing term loan on the joint venture to allow for additional borrowings up to $100,000 at LIBOR plus 2%. Concurrent with the amendment, the joint venture borrowed an additional $26,000. On August 16, 2019, the joint venture borrowed an additional $25,000. The Company used its share of the additional proceeds to pay down its line of credit and for general corporate purposes.

On September 12, 2019, the Company’s joint venture in Tysons Tower placed a new $190,000 loan on the property that bears interest at an effective rate of 3.38% and matures on November 11, 2029. The Company used its share of the proceeds to pay down its line of credit and for general corporate purposes.

On December 18, 2019, the Company’s joint venture in One Westside placed a $414,600 construction loan on the redevelopment project. The loan bears interest at LIBOR plus 1.70%, which can be reduced to LIBOR plus 1.50% upon the completion of certain conditions, and matures on December 18, 2024. This loan is expected to fund the joint venture's remaining cost to complete the project.

Combined and condensed balance sheets and statements of operations are presented below for all unconsolidated joint ventures.

Combined and Condensed Balance Sheets of Unconsolidated Joint Ventures:

	March 31, 2020		December 31, 2019
Assets(1):
Property, net	$	9,414,762	$	9,424,591
Other assets	752,159		772,116
Total assets	$	10,166,921	$	10,196,707
Liabilities and partners' capital(1):
Mortgage and other notes payable	$	6,125,614	$	6,144,685
Other liabilities	495,817		565,412
Company's capital	1,916,313		1,904,145
Outside partners' capital	1,629,177		1,582,465
Total liabilities and partners' capital	$	10,166,921	$	10,196,707
Investments in unconsolidated joint ventures:
Company's capital	$	1,916,313	$	1,904,145
Basis adjustment(2)	(482,643)		(492,350)
	$	1,433,670	$	1,411,795
Assets—Investments in unconsolidated joint ventures	$	1,540,826	$	1,519,697
Liabilities—Distributions in excess of investments in unconsolidated joint ventures	(107,156)		(107,902)
	$	1,433,670	$	1,411,795

(1)    These amounts include assets of $2,911,512 and $2,932,401 of Pacific Premier Retail LLC (the "PPR Portfolio") as of March 31, 2020 and December 31, 2019, respectively, and liabilities of $1,709,593 and $1,732,976 of the PPR Portfolio as of March 31, 2020 and December 31, 2019, respectively.

(2)    The Company amortizes the difference between the cost of its investments in unconsolidated joint ventures and the book value of the underlying equity into income on a straight-line basis consistent with the lives of the underlying assets. The amortization of this difference was $3,999 and $4,539 for the three months ended March 31, 2020 and 2019, respectively.

Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures:

	PPR Portfolio		Other Joint Ventures		Total
Three Months Ended March 31, 2020
Revenues:
Leasing revenue	$	58,378	$	172,245	$	230,623
Other	51		6,888		6,939
Total revenues	58,429		179,133		237,562
Expenses:
Shopping center and operating expenses	9,642		61,509		71,151
Leasing expenses	473		1,295		1,768
Interest expense	16,094		38,141		54,235
Depreciation and amortization	28,618		68,360		96,978
Total operating expenses	54,827		169,305		224,132
Net income	$	3,602	$	9,828	$	13,430
Company's equity in net income	$	4,721	$	4,977	$	9,698
Three Months Ended March 31, 2019
Revenues:
Leasing revenue	$	46,020	$	173,524	$	219,544
Other	182		12,064		12,246
Total revenues	46,202		185,588		231,790
Expenses:
Shopping center and operating expenses	9,672		59,650		69,322
Leasing expenses	467		1,707		2,174
Interest expense	16,951		36,911		53,862
Depreciation and amortization	25,514		64,467		89,981
Total operating expenses	52,604		162,735		215,339
Loss on sale or write down of assets, net	(6)		(135)		(141)
Net (loss) income	$	(6,408)	$	22,718	$	16,310
Company's equity in net (loss) income	$	(1,199)	$	13,442	$	12,243

Significant accounting policies used by the unconsolidated joint ventures are similar to those used by the Company.