Investments in Unconsolidated Joint Ventures

6 Months Ended

Jun. 30, 2020

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:


	June 30, 2020		December 31, 2019
Assets(1):
Property, net	$	9,391,727	$	9,424,591
Other assets	804,103		772,116
Total assets	$	10,195,830	$	10,196,707
Liabilities and partners' capital(1):
Mortgage and other notes payable	$	6,113,603	$	6,144,685
Other liabilities	496,205		565,412
Company's capital	1,935,289		1,904,145
Outside partners' capital	1,650,733		1,582,465
Total liabilities and partners' capital	$	10,195,830	$	10,196,707
Investments in unconsolidated joint ventures:
Company's capital	$	1,935,289	$	1,904,145
Basis adjustment(2)	(474,686)		(492,350)
	$	1,460,603	$	1,411,795

Assets—Investments in unconsolidated joint ventures	$	1,568,878	$	1,519,697
Liabilities—Distributions in excess of investments in unconsolidated joint ventures	(108,275)		(107,902)
	$	1,460,603	$	1,411,795

(1) These amounts include assets of $2,900,500 and $2,932,401 of Pacific Premier Retail LLC (the "PPR Portfolio") as of June 30, 2020 and December 31, 2019, respectively, and liabilities of $1,702,957 and $1,732,976 of the PPR Portfolio as of June 30, 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 $3,729 and $5,271 for the three months ended June 30, 2020 and 2019, respectively, and $7,728 and $9,810 for the six months ended June 30, 2020 and 2019, respectively.

Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures:


	PPR Portfolio		Other Joint Ventures		Total
Three Months Ended June 30, 2020
Revenues:
Leasing revenue	$	38,806	$	139,452	$	178,258
Other	253		(399)		(146)
Total revenues	39,059		139,053		178,112
Expenses:
Shopping center and operating expenses	8,240		53,145		61,385
Leasing expenses	290		832		1,122
Interest expense	16,363		36,790		53,153
Depreciation and amortization	24,565		66,095		90,660
Total operating expenses	49,458		156,862		206,320
Loss on sale or write down of assets, net	—		(12)		(12)

Net loss	$	(10,399)	$	(17,821)	$	(28,220)
Company's equity in net loss	$	(3,777)	$	(10,396)	$	(14,173)
Three Months Ended June 30, 2019
Revenues:
Leasing revenue	$	45,346	$	172,273	$	217,619
Other	435		13,097		13,532
Total revenues	45,781		185,370		231,151
Expenses:
Shopping center and operating expenses	8,470		59,065		67,535
Leasing expenses	373		1,655		2,028
Interest expense	17,043		37,682		54,725
Depreciation and amortization	24,732		76,866		101,598
Total operating expenses	50,618		175,268		225,886
Loss on sale or write down of assets, net	(399)		(145)		(544)

Net (loss) income	$	(5,236)	$	9,957	$	4,721
Company's equity in net (loss) income	$	(531)	$	7,788	$	7,257


	PPR Portfolio		Other Joint Ventures		Total
Six Months Ended June 30, 2020
Revenues:
Leasing revenue	$	97,184	$	311,696	$	408,880
Other	302		6,492		6,794
Total revenues	97,486		318,188		415,674
Expenses:
Shopping center and operating expenses	17,881		114,654		132,535
Leasing expenses	763		2,127		2,890
Interest expense	32,458		74,930		107,388
Depreciation and amortization	53,182		134,456		187,638
Total operating expenses	104,284		326,167		430,451
Loss on sale or write down of assets, net	—		(12)		(12)

Net loss	$	(6,798)	$	(7,991)	$	(14,789)
Company's equity in net income (loss)	$	944	$	(5,419)	$	(4,475)
Six Months Ended June 30, 2019
Revenues:
Leasing revenue	$	91,366	$	345,797	$	437,163
Other	617		25,161		25,778
Total revenues	91,983		370,958		462,941
Expenses:
Shopping center and operating expenses	18,142		118,715		136,857
Leasing expenses	840		3,362		4,202
Interest expense	33,994		74,593		108,587
Depreciation and amortization	50,246		141,333		191,579
Total operating expenses	103,222		338,003		441,225
Loss on sale or write down of assets, net	(405)		(280)		(685)

Net (loss) income	$	(11,644)	$	32,675	$	21,031
Company's equity in net (loss) income	$	(1,730)	$	21,230	$	19,500

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