Investments in Unconsolidated Real Estate Joint Ventures (Tables)
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9 Months Ended |
Sep. 30, 2017 |
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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 September 30, 2017 |
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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Columbus |
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Columbus, OH |
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50.0 |
% |
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355 |
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$ |
6.8 |
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$ |
84.4 |
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National Harbor |
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National Harbor, MD |
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50.0 |
% |
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341 |
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2.4 |
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86.4 |
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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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116.6 |
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11.4 |
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Investments included in total assets |
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$ |
125.8 |
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Charlotte(3)
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Charlotte, NC |
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50.0 |
% |
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398 |
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$ |
(3.6 |
) |
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$ |
89.8 |
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Galveston/Houston (2)(3)
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Texas City, TX |
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50.0 |
% |
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353 |
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(12.5 |
) |
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79.4 |
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Investments included in other liabilities
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$ |
(16.1 |
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As of December 31, 2016 |
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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Columbus |
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Columbus, OH |
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50.0 |
% |
|
355 |
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$ |
6.7 |
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$ |
84.2 |
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National Harbor |
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National Harbor, MD |
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50.0 |
% |
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341 |
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4.1 |
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86.1 |
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RioCan Canada |
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Various |
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50.0 |
% |
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901 |
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117.3 |
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11.1 |
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Investments included in total assets |
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$ |
128.1 |
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Charlotte(3)
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Charlotte, NC |
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50.0 |
% |
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398 |
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$ |
(2.5 |
) |
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$ |
89.7 |
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Galveston/Houston (2)(3)
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Texas City, TX |
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50.0 |
% |
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353 |
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(3.8 |
) |
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64.9 |
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Investments included in other liabilities |
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$ |
(6.3 |
) |
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(1) |
Net of debt origination costs and including premiums of $1.6 million and $1.6 million as of September 30, 2017 and December 31, 2016, respectively.
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(2) |
In July 2017, the joint venture amended and restated the initial construction loan to increase the amount available to borrow from $70.0 million to $80.0 million and extended the maturity date until July 2020 with two one-year options. The amended and restated loan also changed the interest rate from LIBOR + 1.50% to an interest rate of LIBOR + 1.65%. At the closing of the amendment, the joint venture distributed approximately $14.5 million equally between the partners.
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(3) |
The negative carrying value is due to the distributions of proceeds from mortgage loans and quarterly distributions of excess cash flow exceeding the original contributions from the partners. |
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| Schedule of Development, Loan Guarantee, Management, Leasing, and Marketing Fees Paid By Unconsolidated JVs |
Fees we received for various services provided to our unconsolidated joint ventures were recognized in management, leasing and other services as follows (in thousands):
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2017 |
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2016 |
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2017 |
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2016 |
Fee: |
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Management and marketing |
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$ |
564 |
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$ |
656 |
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1,676 |
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2,199 |
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Development and leasing |
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20 |
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65 |
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$ |
87 |
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$ |
611 |
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Loan guarantee |
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4 |
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85 |
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13 |
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449 |
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Total Fees |
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$ |
588 |
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$ |
806 |
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$ |
1,776 |
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$ |
3,259 |
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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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September 30, 2017 |
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December 31, 2016 |
Assets |
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Land |
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$ |
95,998 |
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$ |
88,015 |
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Buildings, improvements and fixtures |
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514,865 |
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503,548 |
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Construction in progress, including land under development |
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2,849 |
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13,037 |
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613,712 |
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604,600 |
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Accumulated depreciation |
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(88,163 |
) |
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(67,431 |
) |
Total rental property, net |
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525,549 |
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537,169 |
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Cash and cash equivalents |
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23,769 |
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27,271 |
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Deferred lease costs and other intangibles, net |
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11,436 |
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13,612 |
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Prepaids and other assets |
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16,262 |
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12,567 |
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Total assets |
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$ |
577,016 |
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$ |
590,619 |
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Liabilities and Owners' Equity |
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Mortgages payable, net |
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$ |
351,322 |
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$ |
335,971 |
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Accounts payable and other liabilities |
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13,463 |
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20,011 |
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Total liabilities |
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364,785 |
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355,982 |
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Owners' equity |
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212,231 |
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234,637 |
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Total liabilities and owners' equity |
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$ |
577,016 |
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$ |
590,619 |
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| Summary Financial Information Of Unconsolidated JVs Statements of Operations |
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Three months ended |
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Nine months ended |
Condensed Combined Statements of Operations |
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September 30, |
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September 30, |
- Unconsolidated Joint Ventures |
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2017 |
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2016 |
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2017 |
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2016 |
Revenues |
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$ |
25,241 |
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$ |
25,654 |
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$ |
72,588 |
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$ |
82,693 |
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Expenses: |
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Property operating |
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8,987 |
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9,103 |
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27,242 |
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30,499 |
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General and administrative |
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72 |
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95 |
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289 |
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390 |
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Asset impairment |
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18,042 |
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5,838 |
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18,042 |
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5,838 |
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Depreciation and amortization |
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6,998 |
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8,001 |
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21,453 |
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26,208 |
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Total expenses |
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34,099 |
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23,037 |
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67,026 |
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62,935 |
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Operating income (loss) |
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(8,858 |
) |
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2,617 |
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5,562 |
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19,758 |
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Interest expense |
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(2,776 |
) |
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(1,925 |
) |
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(7,497 |
) |
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(7,161 |
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Other non-operating income |
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20 |
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2 |
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23 |
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5 |
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Net income (loss) |
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$ |
(11,614 |
) |
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$ |
694 |
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$ |
(1,912 |
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$ |
12,602 |
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The Company and Operating Partnership's share of: |
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Net income (loss) |
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$ |
(5,893 |
) |
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$ |
715 |
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$ |
(1,201 |
) |
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$ |
7,680 |
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Depreciation and amortization expense (real estate related) |
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$ |
3,583 |
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$ |
4,325 |
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$ |
10,971 |
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$ |
15,472 |
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