Quarterly report pursuant to Section 13 or 15(d)

Investments in Unconsolidated Real Estate Joint Ventures

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Investments in Unconsolidated Real Estate Joint Ventures
6 Months Ended
Jun. 30, 2024
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 June 30, 2024
Joint Venture 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 Ontario, Canada 50.0  % 665  $ 72.1  — 
Investments included in other liabilities:
Charlotte(2)
Charlotte, NC 50.0  % 399  (21.5) 98.4 
National Harbor(2)
National Harbor, MD 50.0  % 341  (12.4) 92.6 
Galveston/Houston (2)
Texas City, TX 50.0  % 353  (12.8) 57.2 
Columbus(2)
Columbus, OH 50.0  % 355  (4.2) 70.4 
50.0  % 1,448 $ (50.9) $ 318.6 
As of December 31, 2023
Joint Venture 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 Ontario, Canada 50.0  % 665  71.9  — 
Investments included in other liabilities:
Charlotte(2)
Charlotte, NC 50.0  % 399  $ (20.8) $ 99.2 
National Harbor(2)
National Harbor, MD 50.0  % 341  (13.7) 93.3 
Galveston/Houston(2)
Texas City, TX 50.0  % 353  (13.0) 57.1 
Columbus(2)
Columbus, OH 50.0  % 355  (3.4) 70.4 
50.0  % 1,448 $ (50.9) $ 320.0 
(1)Net of debt origination costs of $1.9 million as of June 30, 2024 and $2.1 million as of December 31, 2023.
(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.

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
Six months ended
June 30, June 30,
  2024 2023 2024 2023
Fee:
Management and marketing $ 571  $ 565  $ 1,128  $ 1,109 
Leasing and other fees 107  53  212  98 
Expense reimbursements from unconsolidated joint ventures 1,189  1,109  2,308  2,185 
Total Fees $ 1,867  $ 1,727  $ 3,648  $ 3,392 
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 $2.7 million and $2.8 million as of June 30, 2024 and December 31, 2023, 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):
June 30, 2024 December 31, 2023
Assets    
Land $ 81,008  $ 82,962 
Buildings, improvements and fixtures 463,869  466,496 
Construction in progress 255  223 
545,132  549,681 
Accumulated depreciation (209,842) (203,395)
Total rental property, net 335,290  346,286 
Cash and cash equivalents 17,810  14,040 
Deferred lease costs and other intangibles, net 2,404  2,637 
Prepaids and other assets 9,241  11,616 
Total assets $ 364,745  $ 374,579 
Liabilities and Owners’ Equity    
Mortgages payable, net $ 318,531  $ 319,957 
Accounts payable and other liabilities 13,292  16,013 
Total liabilities 331,823  335,970 
Owners’ equity 32,922  38,609 
Total liabilities and owners’ equity $ 364,745  $ 374,579 
  Three months ended
Six months ended
Condensed Combined Statements of Operations - Unconsolidated Joint Ventures June 30, June 30,
2024 2023 2024 2023
Revenues $ 23,206  $ 21,804  $ 45,702  $ 43,933 
Expenses:  
Property operating 8,876  8,783  16,868  17,255 
General and administrative 14  47  130  189 
Depreciation and amortization 3,941  5,156  9,021  10,395 
Total expenses 12,831  13,986  26,019  27,839 
Other income (expense):
Interest expense (4,548) (4,519) (9,088) (8,920)
Other income 118  129  382  268 
Total other expense (4,430) (4,390) (8,706) (8,652)
Net income $ 5,945  $ 3,428  $ 10,977  $ 7,442 
The Company and Operating Partnership’s share of:    
Net income $ 2,975  $ 1,706  $ 5,491  $ 3,641 
Depreciation and amortization (real estate related) $ 2,060  $ 2,615  $ 4,600  $ 5,285