Investments in Unconsolidated Real Estate Joint Ventures (Tables)
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6 Months Ended |
Jun. 30, 2020 |
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| Investments In Unconsolidated Real Estate Joint Ventures [Abstract] |
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| Schedule of Equity Method Investments |
We have an ownership interest in the following unconsolidated real estate joint ventures:
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As of June 30, 2020 |
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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765 |
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$ |
92.1 |
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$ |
— |
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$ |
92.1 |
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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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$ |
(3.9 |
) |
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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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(13.1 |
) |
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99.6 |
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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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(7.8 |
) |
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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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(20.0 |
) |
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79.9 |
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$ |
(44.8 |
) |
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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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(1) |
Net of debt origination costs of $1.1 million as of June 30, 2020 and net of debt origination cost and including premiums of $1.1 million as of December 31, 2019.
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(2) |
The negative carrying value is due to distributions exceeding contributions and increases or decreases from our equity in earnings of the joint venture. |
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| Schedule of Development, Loan Guarantee, Management, Leasing, and Marketing Fees Paid By Unconsolidated JVs |
Fees we received for various services provided to our unconsolidated joint ventures were recognized in management, leasing and other services as follows (in thousands):
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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2020 |
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2019 |
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2020 |
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2019 |
Fee: |
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Management and marketing |
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$ |
143 |
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$ |
561 |
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$ |
685 |
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$ |
1,128 |
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Leasing and other fees |
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15 |
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9 |
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35 |
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40 |
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Expense reimbursements from unconsolidated joint ventures |
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566 |
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675 |
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1,448 |
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1,419 |
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Total Fees |
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$ |
724 |
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$ |
1,245 |
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$ |
2,168 |
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$ |
2,587 |
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| Schedule of impairment charges [Table Text Block] |
During June 2020, the Rio-Can joint venture recognized an impairment charge related to its Saint-Sauveur property in Quebec. The impairment charge was primarily driven by deterioration of net operating income caused by market competition and the COVID-19 pandemic.
The table below summarizes the impairment charge taken during the second quarter of 2020 (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 |
2020 |
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Saint-Sauveur |
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$ |
6,181 |
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$ |
3,091 |
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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 unconsolidated joint ventures accounted for using the equity method is as follows (in thousands):
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Condensed Combined Balance Sheets - Unconsolidated Joint Ventures |
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June 30, 2020 |
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December 31, 2019 |
Assets |
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Land |
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$ |
87,402 |
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$ |
90,859 |
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Buildings, improvements and fixtures |
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457,969 |
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477,061 |
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Construction in progress |
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4,495 |
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4,779 |
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549,866 |
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572,699 |
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Accumulated depreciation |
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(133,199 |
) |
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(132,860 |
) |
Total rental property, net |
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416,667 |
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439,839 |
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Cash and cash equivalents |
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9,274 |
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19,750 |
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Deferred lease costs and other intangibles, net |
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5,554 |
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6,772 |
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Prepaids and other assets |
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26,888 |
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17,789 |
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Total assets |
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$ |
458,383 |
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$ |
484,150 |
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Liabilities and Owners’ Equity |
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Mortgages payable, net |
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$ |
358,923 |
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$ |
368,032 |
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Accounts payable and other liabilities |
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15,627 |
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17,173 |
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Total liabilities |
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374,550 |
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385,205 |
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Owners’ equity |
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83,833 |
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98,945 |
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Total liabilities and owners’ equity |
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$ |
458,383 |
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$ |
484,150 |
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| Summary Financial Information Of Unconsolidated JVs Statements of Operations |
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Three months ended |
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Six months ended |
Condensed Combined Statements of Operations |
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June 30, |
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June 30, |
- Unconsolidated Joint Ventures |
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2020 |
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2019 |
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2020 |
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2019 |
Revenues |
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$ |
16,475 |
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$ |
23,575 |
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$ |
38,512 |
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$ |
47,038 |
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Expenses: |
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Property operating |
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6,860 |
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9,611 |
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15,989 |
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19,400 |
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General and administrative |
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123 |
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62 |
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262 |
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152 |
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Asset impairment |
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6,181 |
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— |
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6,181 |
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— |
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Depreciation and amortization |
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5,903 |
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6,317 |
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11,809 |
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12,427 |
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Total expenses |
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19,067 |
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15,990 |
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34,241 |
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31,979 |
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Other income (expense): |
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Interest expense |
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(3,232 |
) |
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(4,138 |
) |
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(6,967 |
) |
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(8,272 |
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Other income |
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6 |
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60 |
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61 |
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126 |
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Total other income (expense) |
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(3,226 |
) |
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(4,078 |
) |
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$ |
(6,906 |
) |
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$ |
(8,146 |
) |
Net income (loss) |
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$ |
(5,818 |
) |
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$ |
3,507 |
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$ |
(2,635 |
) |
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$ |
6,913 |
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The Company and Operating Partnership’s share of: |
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Net income (loss) |
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$ |
(2,975 |
) |
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$ |
1,646 |
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$ |
(1,448 |
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$ |
3,275 |
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Depreciation and amortization (real estate related) |
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$ |
3,017 |
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$ |
3,265 |
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$ |
6,035 |
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$ |
6,395 |
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