Quarterly report pursuant to Section 13 or 15(d)

Investments in Unconsolidated Real Estate Joint Ventures

v3.22.2.2
Investments in Unconsolidated Real Estate Joint Ventures
3 Months Ended
Mar. 31, 2022
Investments In Unconsolidated Real Estate Joint Ventures [Abstract]  
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, 2022
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  % 665  83.0  — 
$ 83.0 
Investments included in other liabilities:
Columbus(2)
Columbus, OH 50.0  % 355  $ (0.9) $ 70.9 
Charlotte(2)
Charlotte, NC 50.0  % 399  $ (17.3) $ 99.6 
National Harbor(2)
National Harbor, MD 50.0  % 341  (11.7) 94.6 
Galveston/Houston (2)
Texas City, TX 50.0  % 353  (13.9) 64.4 
$ (43.8)
As of December 31, 2021
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:
Columbus Columbus, OH 50.0  % 355  $ 0.2  $ 70.9 
RioCan Canada Various 50.0  % 665  82.4  — 
$ 82.6 
Investments included in other liabilities:
Charlotte(2)
Charlotte, NC 50.0  % 399  $ (16.2) $ 99.6 
National Harbor(2)
National Harbor, MD 50.0  % 341  (11.2) 94.5 
Galveston/Houston (2)
Texas City, TX 50.0  % 353  (14.0) 64.4 
$ (41.4)
(1)Net of debt origination costs of $1.0 million as of March 31, 2022 and $1.0 million as of December 31, 2021.
(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,
  2022 2021
Fee:    
Management and marketing $ 536  $ 509 
Leasing and other fees 35  56 
Expense reimbursements from unconsolidated joint ventures 956  807 
Total Fees $ 1,527  $ 1,372 

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 “Condensed Combined 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 $3.3 million and $3.4 million as of March 31, 2022 and December 31, 2021, respectively) are amortized over the various useful lives of the related assets.

RioCan Canada

In March 2021, the RioCan joint venture closed on the sale of its outlet center in Saint-Sauveur, for net proceeds of approximately $9.4 million. Our share of the proceeds was approximately $4.7 million. As a result of this transaction, we recorded a loss on the sale of $3.7 million. This includes a $3.6 million charge related to the foreign currency effect of the sale recorded in other income (expense), which had been previously recorded in other comprehensive income.

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, 2022 December 31, 2021
Assets    
Land $ 84,184  $ 83,568 
Buildings, improvements and fixtures 470,435  467,918 
Construction in progress 915  744 
555,534  552,230 
Accumulated depreciation (171,917) (166,096)
Total rental property, net 383,617  386,134 
Cash and cash equivalents 14,738  19,030 
Deferred lease costs and other intangibles, net 3,413  3,517 
Prepaids and other assets 11,766  13,109 
Total assets $ 413,534  $ 421,790 
Liabilities and Owners’ Equity    
Mortgages payable, net $ 329,488  $ 329,460 
Accounts payable and other liabilities 13,530  15,231 
Total liabilities 343,018  344,691 
Owners’ equity 70,516  77,099 
Total liabilities and owners’ equity $ 413,534  $ 421,790 
  Three months ended
Condensed Combined Statements of Operations March 31,
 - Unconsolidated Joint Ventures 2022 2021
Revenues $ 21,841  $ 20,992 
Expenses:  
Property operating 8,303  8,413 
General and administrative 92  29 
Depreciation and amortization 5,482  5,901 
Total expenses 13,877  14,343 
Other income (expense):
Interest expense (2,916) (2,945)
Gain on sale of assets —  503 
Other income 59 
Total other expense (2,913) (2,383)
Net income $ 5,051  $ 4,266 
The Company and Operating Partnership’s share of:    
Net income $ 2,513  $ 1,769 
Depreciation and amortization (real estate related) $ 2,754  $ 2,996