Investments in Unconsolidated Real Estate Joint Ventures (Tables)
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9 Months Ended |
Sep. 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 September 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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$ |
92.5 |
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$ |
— |
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$ |
92.5 |
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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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$ |
(3.6) |
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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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(8.7) |
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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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(19.8) |
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79.9 |
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$ |
(45.2) |
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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 September 30, 2020 and net of debt origination cost and including premiums of $1.1 million as of December 31, 2019.
(2)The negative carrying value is due to distributions exceeding contributions and increases or decreases from our equity in earnings of the joint venture.
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| Schedule of Development, Loan Guarantee, Management, Leasing, and Marketing Fees Paid By Unconsolidated JVs |
Fees we received for various services provided to our unconsolidated joint ventures were recognized in management, leasing and other services as follows (in thousands):
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2020 |
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2019 |
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2020 |
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2019 |
| Fee: |
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| Management and marketing |
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$ |
471 |
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$ |
567 |
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$ |
1,156 |
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$ |
1,696 |
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| Leasing and other fees |
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15 |
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32 |
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50 |
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71 |
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| Expense reimbursements from unconsolidated joint ventures |
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708 |
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757 |
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2,156 |
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2,176 |
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| Total Fees |
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$ |
1,194 |
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$ |
1,356 |
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$ |
3,362 |
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$ |
3,943 |
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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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September 30, 2020 |
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December 31, 2019 |
| Assets |
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| Land |
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$ |
88,312 |
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$ |
90,859 |
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| Buildings, improvements and fixtures |
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461,593 |
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477,061 |
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| Construction in progress |
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4,801 |
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4,779 |
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554,706 |
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572,699 |
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| Accumulated depreciation |
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(138,622) |
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(132,860) |
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| Total rental property, net |
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416,084 |
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439,839 |
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| Cash and cash equivalents |
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16,515 |
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19,750 |
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| Deferred lease costs and other intangibles, net |
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5,134 |
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6,772 |
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| Prepaids and other assets |
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24,355 |
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17,789 |
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| Total assets |
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$ |
462,088 |
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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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$ |
358,940 |
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$ |
368,032 |
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| Accounts payable and other liabilities |
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15,911 |
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17,173 |
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| Total liabilities |
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374,851 |
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385,205 |
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| Owners’ equity |
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87,237 |
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98,945 |
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| Total liabilities and owners’ equity |
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$ |
462,088 |
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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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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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2020 |
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2019 |
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2020 |
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2019 |
| Revenues |
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$ |
16,959 |
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$ |
23,050 |
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$ |
55,470 |
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$ |
70,088 |
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| Expenses: |
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| Property operating |
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8,035 |
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8,380 |
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24,023 |
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27,780 |
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| General and administrative |
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82 |
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19 |
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344 |
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171 |
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| Asset impairment |
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— |
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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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5,877 |
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6,051 |
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17,686 |
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18,478 |
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| Total expenses |
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13,994 |
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14,450 |
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48,234 |
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46,429 |
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| Other income (expense): |
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| Interest expense |
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(3,024) |
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(4,059) |
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(9,991) |
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(12,331) |
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| Other income |
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104 |
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179 |
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165 |
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305 |
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| Total other income (expense) |
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(2,920) |
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(3,880) |
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$ |
(9,826) |
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$ |
(12,026) |
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| Net income (loss) |
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$ |
45 |
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$ |
4,720 |
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$ |
(2,590) |
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$ |
11,633 |
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| The Company and Operating Partnership’s share of: |
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| Net income (loss) |
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$ |
(42) |
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$ |
2,329 |
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$ |
(1,490) |
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$ |
5,604 |
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| Depreciation and amortization (real estate related) |
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$ |
3,003 |
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$ |
3,058 |
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$ |
9,038 |
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$ |
9,453 |
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