| Investments in Unconsolidated Real Estate Joint Ventures |
Investments in Unconsolidated Real Estate Joint Ventures
The equity method of accounting is used to account for each of the individual joint ventures. We have an ownership interest in the following unconsolidated real estate joint ventures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2019 |
Joint Venture |
|
Outlet Center Location |
|
Ownership % |
|
Square Feet
(in 000's)
|
|
Carrying Value of Investment (in millions) |
|
Total Joint Venture Debt, Net
(in millions)(1)
|
Investments included in investments in unconsolidated joint ventures: |
|
|
|
|
RioCan Canada |
|
Various |
|
50.0 |
% |
|
924 |
|
|
$ |
97.7 |
|
|
$ |
9.5 |
|
|
|
|
|
|
|
$ |
97.7 |
|
|
|
|
Investments included in other liabilities: |
|
|
|
|
Columbus(2)
|
|
Columbus, OH |
|
50.0 |
% |
|
355 |
|
|
$ |
(2.6 |
) |
|
$ |
84.8 |
|
Charlotte(2)
|
|
Charlotte, NC |
|
50.0 |
% |
|
399 |
|
|
(11.2 |
) |
|
99.5 |
|
National Harbor(2)
|
|
National Harbor, MD |
|
50.0 |
% |
|
341 |
|
|
(5.0 |
) |
|
94.4 |
|
Galveston/Houston (2)
|
|
Texas City, TX |
|
50.0 |
% |
|
353 |
|
|
(20.6 |
) |
|
79.7 |
|
|
|
|
|
|
|
$ |
(39.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2018 |
Joint Venture |
|
Outlet Center Location |
|
Ownership % |
|
Square Feet
(in 000's)
|
|
Carrying Value of Investment (in millions) |
|
Total Joint Venture Debt, Net
(in millions)(1)
|
Investments included in investments in unconsolidated joint ventures: |
|
|
|
|
RioCan Canada |
|
Various |
|
50.0 |
% |
|
924 |
|
|
$ |
96.0 |
|
|
$ |
9.3 |
|
|
|
|
|
|
|
$ |
96.0 |
|
|
|
Investments included in other liabilities: |
|
|
|
|
|
|
Columbus (2)
|
|
Columbus, OH |
|
50.0 |
% |
|
355 |
|
|
$ |
(1.6 |
) |
|
$ |
84.7 |
|
Charlotte(2)
|
|
Charlotte, NC |
|
50.0 |
% |
|
398 |
|
|
(10.8 |
) |
|
99.5 |
|
National Harbor (2)
|
|
National Harbor, MD |
|
50.0 |
% |
|
341 |
|
|
(5.1 |
) |
|
94.5 |
|
Galveston/Houston(2)
|
|
Texas City, TX |
|
50.0 |
% |
|
353 |
|
|
(15.0 |
) |
|
79.6 |
|
|
|
|
|
|
|
$ |
(32.5 |
) |
|
|
|
|
|
(1) |
Net of debt origination costs and including premiums of $1.4 million as of March 31, 2019 and December 31, 2018.
|
|
|
(2) |
The negative carrying value is due to distributions exceeding contributions and increases or decreases from our equity in earnings of the joint venture. |
Fees we received for various services provided to our unconsolidated joint ventures were recognized in management, leasing and other services as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
March 31, |
|
|
2019 |
|
2018 |
Fee: |
|
|
|
|
|
|
Management and marketing |
|
$ |
566 |
|
|
$ |
567 |
|
Leasing and other fees |
|
31 |
|
|
46 |
|
Expense reimbursements from unconsolidated joint ventures |
|
745 |
|
|
586 |
|
Total Fees |
|
$ |
1,342 |
|
|
$ |
1,199 |
|
Expense reimbursements from unconsolidated joint ventures were previously included in expense reimbursements in our 2018 10-Q. As these revenues are not related to leases, the 2018 amounts have been reclassified to management, leasing and other services on the consolidated statements of operations to conform to the current year presentation. See Note 17 for discussion of adoption of Accounting Standards Codification Topic 842 “Leases”.
Our investments in real estate joint ventures are reduced by the percentage of the profits earned for leasing and development services associated with our ownership interest in each joint venture. Our carrying value of investments in unconsolidated joint ventures differs from our share of the assets reported in the "Summary Balance Sheets - Unconsolidated Joint Ventures" shown below due to adjustments to the book basis, including intercompany profits on sales of services that are capitalized by the unconsolidated joint ventures. The differences in basis (totaling $4.0 million and $4.1 million as of March 31, 2019 and December 31, 2018, respectively) are amortized over the various useful lives of the related assets.
Condensed combined summary financial information of unconsolidated joint ventures accounted for using the equity method is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
Condensed Combined Balance Sheets - Unconsolidated Joint Ventures |
|
March 31, 2019 |
|
December 31, 2018 |
Assets |
|
|
|
|
|
|
Land |
|
$ |
92,440 |
|
|
$ |
91,443 |
|
Buildings, improvements and fixtures |
|
474,981 |
|
|
469,834 |
|
Construction in progress |
|
3,455 |
|
|
2,841 |
|
|
|
570,876 |
|
|
564,118 |
|
Accumulated depreciation |
|
(119,996 |
) |
|
(113,713 |
) |
Total rental property, net |
|
450,880 |
|
|
450,405 |
|
Cash and cash equivalents |
|
11,744 |
|
|
16,216 |
|
Deferred lease costs and other intangibles, net |
|
8,098 |
|
|
8,437 |
|
Prepaids and other assets |
|
15,963 |
|
|
25,648 |
|
Total assets |
|
$ |
486,685 |
|
|
$ |
500,706 |
|
Liabilities and Owners' Equity |
|
|
|
|
|
|
Mortgages payable, net |
|
$ |
367,933 |
|
|
$ |
367,865 |
|
Accounts payable and other liabilities |
|
11,933 |
|
|
13,414 |
|
Total liabilities |
|
379,866 |
|
|
381,279 |
|
Owners' equity |
|
106,819 |
|
|
119,427 |
|
Total liabilities and owners' equity |
|
$ |
486,685 |
|
|
$ |
500,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
Condensed Combined Statements of Operations |
|
March 31, |
- Unconsolidated Joint Ventures |
|
2019 |
|
2018 |
Revenues |
|
$ |
23,463 |
|
|
$ |
23,997 |
|
Expenses: |
|
|
|
|
|
Property operating |
|
9,790 |
|
|
9,928 |
|
General and administrative |
|
90 |
|
|
198 |
|
Depreciation and amortization |
|
6,110 |
|
|
6,363 |
|
Total expenses |
|
15,990 |
|
|
16,489 |
|
Other income (expense): |
|
|
|
|
|
|
Interest expense |
|
(4,134 |
) |
|
(3,077 |
) |
Other income |
|
66 |
|
|
52 |
|
Total other income (expense) |
|
$ |
(4,068 |
) |
|
$ |
(3,025 |
) |
Net income |
|
$ |
3,405 |
|
|
$ |
4,483 |
|
The Company and Operating Partnership's share of: |
|
|
|
|
|
Net income |
|
$ |
1,629 |
|
|
$ |
2,194 |
|
Depreciation and amortization (real estate related) |
|
$ |
3,130 |
|
|
$ |
3,229 |
|
|