Annual report pursuant to Section 13 and 15(d)

Investments in Unconsolidated Real Estate Joint Ventures (Tables)

v3.19.3.a.u2
Investments in Unconsolidated Real Estate Joint Ventures (Tables)
12 Months Ended
Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Equity Method Investments

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 December 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
%
 
764

 
$
94.7

 
$
9.2

 
 
 
 
 
 
$
94.7

 


Investments included in other liabilities:
 
 
 
 
 
 
Columbus (2)
 
Columbus, OH
 
50.0
%
 
355

 
$
(3.5
)
 
$
85.0

Charlotte (2)
 
Charlotte, NC
 
50.0
%
 
399

 
(13.0
)
 
99.5

National Harbor (2)
 
National Harbor, MD
 
50.0
%
 
341

 
(5.9
)
 
94.4

Galveston/Houston (2)
 
Texas City, TX
 
50.0
%
 
353

 
(19.7
)
 
79.9

 
 
 
 
 
 
$
(42.1
)
 



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 $1.1 million and $1.4 million as of December 31, 2019 and 2018, respectively.
(2)
We separately report investments in joint ventures for which accumulated distributions have exceeded investments in and our share of net income or loss of the joint ventures within other liabilities in the consolidated balance sheets because we are committed and intend to provide further financial support to these joint ventures. The negative carrying value is due to the distributions of proceeds from mortgage loans and quarterly distributions of excess cash flow exceeding the original contributions from the partners and equity in earnings of the joint ventures.
Schedule of fees we received for various services provided to our unconsolidated joint ventures
Fees we received for various services provided to our unconsolidated joint ventures were recognized in management, leasing and other services as follows (in thousands):
 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
Fees:
 
 
 
 
 
 
Management and marketing
 
$
2,308

 
$
2,334

 
$
2,310

Leasing and other fees
 
126

 
162

 
142

Expense reimbursements from unconsolidated joint ventures
 
2,985

 
2,499

 
1,212

Total Fees
 
$
5,419

 
$
4,995

 
$
3,664


Schedule of impairment charges
The table below summarizes the impairment charges taken during 2018 and 2017 (in thousands):

 
 
 
 
Impairment Charge(1)
 
 
Outlet Center
 
Total
 
Our Share
2018
 
Bromont and Saint Sauveur
 
$
14,359

 
$
7,180

2017
 
Bromont and Saint Sauveur
 
$
18,042

 
$
9,021

(1)
The fair value was determined using an income approach considering the prevailing market income capitalization rates for similar assets.
Summary Financial Information of Unconsolidated JVs Balance Sheet
Condensed combined summary financial information of joint ventures accounted for using the equity method as of December 31, 2019 and 2018 and for the years ended December 31, 2019, 2018 and 2017 is as follows (in thousands):
Condensed Combined Balance Sheets - Unconsolidated Joint Ventures
 
2019
 
2018
Assets
 
 
 
 
Land
 
$
90,859

 
$
91,443

Buildings, improvements and fixtures
 
477,061

 
469,834

Construction in progress
 
4,779

 
2,841

 
 
572,699

 
564,118

Accumulated depreciation
 
(132,860
)
 
(113,713
)
Total rental property, net
 
439,839

 
450,405

Cash and cash equivalents
 
19,750

 
16,216

Deferred lease costs, net
 
6,772

 
8,437

Prepaids and other assets
 
17,789

 
25,648

Total assets
 
$
484,150

 
$
500,706

Liabilities and Owners' Equity
 
 
 
 
Mortgages payable, net
 
$
368,032

 
$
367,865

Accounts payable and other liabilities
 
17,173

 
13,414

Total liabilities
 
385,205

 
381,279

Owners' equity
 
98,945

 
119,427

Total liabilities and owners' equity
 
$
484,150

 
$
500,706



Summary Financial Information Of Unconsolidated JVs Statements of Operations
Condensed Combined Statements of Operations- Unconsolidated Joint Ventures:
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
Revenues
 
$
93,508

 
$
94,509

 
$
96,776

Expenses:
 
 
 
 
 
 
Property operating
 
36,812

 
37,121

 
36,507

General and administrative
 
271

 
266

 
350

Impairment charges
 

 
14,359

 
18,042

Depreciation and amortization
 
24,454

 
26,262

 
28,162

Total expenses
 
61,537

 
78,008

 
83,061

Other income (expense):
 
 
 
 
 
 
Interest expense
 
(16,234
)
 
(14,518
)
 
(10,365
)
Other non-operating income
 
507

 
234

 
71

Total other income (expense)
 
$
(15,727
)
 
$
(14,284
)
 
$
(10,294
)
Net income
 
$
16,244

 
$
2,217


$
3,421

The Company and Operating Partnership's share of:
 
 
 
 
 
 
Net income
 
$
7,839

 
$
924

 
$
1,937

Depreciation, amortization and asset impairments (real estate related)
 
$
12,512

 
$
20,494

 
$
22,878