Investments in Unconsolidated Real Estate Joint Ventures (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Equity Method Investments and Joint Ventures [Abstract] |
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| 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:
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As of December 31, 2019 |
Joint Venture |
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Outlet Center Location |
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Ownership % |
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Square Feet
(in 000's)
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Carrying Value of Investment (in millions) |
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Total Joint Venture Debt, Net
(in millions) (1)
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Investments included in investments in unconsolidated joint ventures: |
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RioCan Canada |
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Various |
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50.0 |
% |
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764 |
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$ |
94.7 |
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$ |
9.2 |
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$ |
94.7 |
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Investments included in other liabilities: |
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Columbus (2)
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Columbus, OH |
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50.0 |
% |
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355 |
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$ |
(3.5 |
) |
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$ |
85.0 |
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Charlotte (2)
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Charlotte, NC |
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50.0 |
% |
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399 |
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(13.0 |
) |
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99.5 |
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National Harbor (2)
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National Harbor, MD |
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50.0 |
% |
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341 |
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(5.9 |
) |
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94.4 |
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Galveston/Houston (2)
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Texas City, TX |
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50.0 |
% |
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353 |
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(19.7 |
) |
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79.9 |
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$ |
(42.1 |
) |
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As of December 31, 2018 |
Joint Venture |
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Outlet Center Location |
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Ownership % |
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Square Feet
(in 000's)
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|
Carrying Value of Investment (in millions) |
|
Total Joint Venture Debt, Net
(in millions) (1)
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Investments included in investments in unconsolidated joint ventures: |
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RioCan Canada |
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Various |
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50.0 |
% |
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924 |
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$ |
96.0 |
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$ |
9.3 |
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$ |
96.0 |
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Investments included in other liabilities: |
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Columbus (2)
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Columbus, OH |
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50.0 |
% |
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355 |
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$ |
(1.6 |
) |
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$ |
84.7 |
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Charlotte (2)
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Charlotte, NC |
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50.0 |
% |
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398 |
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(10.8 |
) |
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99.5 |
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National Harbor (2)
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National Harbor, MD |
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50.0 |
% |
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341 |
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(5.1 |
) |
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94.5 |
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Galveston/Houston (2)
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Texas City, TX |
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50.0 |
% |
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353 |
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(15.0 |
) |
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79.6 |
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$ |
(32.5 |
) |
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(1) |
Net of debt origination costs and including premiums of $1.1 million and $1.4 million as of December 31, 2019 and 2018, respectively.
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(2) We separately report investments in joint ventures for which accumulated distributions have exceeded investments in and our share of net income or loss of the joint ventures within other liabilities in the consolidated balance sheets because we are committed and intend to provide further financial support to these joint ventures. The negative carrying value is due to the distributions of proceeds from mortgage loans and quarterly distributions of excess cash flow exceeding the original contributions from the partners and equity in earnings of the joint ventures.
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| Schedule of fees we received for various services provided to our unconsolidated joint ventures |
Fees we received for various services provided to our unconsolidated joint ventures were recognized in management, leasing and other services as follows (in thousands):
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Year Ended December 31, |
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2019 |
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2018 |
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2017 |
Fees: |
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Management and marketing |
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$ |
2,308 |
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$ |
2,334 |
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$ |
2,310 |
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Leasing and other fees |
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126 |
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162 |
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142 |
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Expense reimbursements from unconsolidated joint ventures |
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2,985 |
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2,499 |
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1,212 |
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Total Fees |
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$ |
5,419 |
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$ |
4,995 |
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$ |
3,664 |
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| Schedule of impairment charges |
The table below summarizes the impairment charges taken during 2018 and 2017 (in thousands):
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Impairment Charge(1)
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Outlet Center |
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Total |
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Our Share |
2018 |
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Bromont and Saint Sauveur |
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$ |
14,359 |
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$ |
7,180 |
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2017 |
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Bromont and Saint Sauveur |
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$ |
18,042 |
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$ |
9,021 |
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(1)
The fair value was determined using an income approach considering the prevailing market income capitalization rates for similar assets.
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| 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):
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Condensed Combined Balance Sheets - Unconsolidated Joint Ventures |
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2019 |
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2018 |
Assets |
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Land |
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$ |
90,859 |
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$ |
91,443 |
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Buildings, improvements and fixtures |
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477,061 |
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469,834 |
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Construction in progress |
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4,779 |
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2,841 |
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572,699 |
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564,118 |
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Accumulated depreciation |
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(132,860 |
) |
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(113,713 |
) |
Total rental property, net |
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439,839 |
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450,405 |
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Cash and cash equivalents |
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19,750 |
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16,216 |
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Deferred lease costs, net |
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6,772 |
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8,437 |
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Prepaids and other assets |
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17,789 |
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25,648 |
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Total assets |
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$ |
484,150 |
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$ |
500,706 |
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Liabilities and Owners' Equity |
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Mortgages payable, net |
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$ |
368,032 |
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$ |
367,865 |
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Accounts payable and other liabilities |
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17,173 |
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13,414 |
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Total liabilities |
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385,205 |
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381,279 |
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Owners' equity |
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98,945 |
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119,427 |
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Total liabilities and owners' equity |
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$ |
484,150 |
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$ |
500,706 |
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| Summary Financial Information Of Unconsolidated JVs Statements of Operations |
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Condensed Combined Statements of Operations- Unconsolidated Joint Ventures: |
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Year Ended December 31, |
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2019 |
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2018 |
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2017 |
Revenues |
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$ |
93,508 |
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$ |
94,509 |
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$ |
96,776 |
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Expenses: |
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Property operating |
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36,812 |
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37,121 |
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36,507 |
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General and administrative |
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271 |
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266 |
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350 |
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Impairment charges |
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— |
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14,359 |
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18,042 |
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Depreciation and amortization |
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24,454 |
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26,262 |
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28,162 |
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Total expenses |
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61,537 |
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78,008 |
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83,061 |
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Other income (expense): |
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Interest expense |
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(16,234 |
) |
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(14,518 |
) |
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(10,365 |
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Other non-operating income |
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507 |
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234 |
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71 |
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Total other income (expense) |
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$ |
(15,727 |
) |
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$ |
(14,284 |
) |
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$ |
(10,294 |
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Net income |
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$ |
16,244 |
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$ |
2,217 |
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$ |
3,421 |
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The Company and Operating Partnership's share of: |
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Net income |
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$ |
7,839 |
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$ |
924 |
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$ |
1,937 |
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Depreciation, amortization and asset impairments (real estate related) |
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$ |
12,512 |
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$ |
20,494 |
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$ |
22,878 |
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