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Investments in Real Estate Entities | 6 Months Ended
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Jun. 30, 2020
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Real Estate Entities | Investments in Real Estate Entities Investments in Unconsolidated Real Estate Entities As of June 30, 2020, the Company had investments in seven unconsolidated real estate entities with ownership interest percentages ranging from 20.0% to 50.0%. The Company accounts for its investments in unconsolidated real estate entities under the equity method of accounting. The significant accounting policies of the Company's unconsolidated real estate entities are consistent with those of the Company in all material respects. The following is a combined summary of the financial position of the entities accounted for using the equity method discussed above as of the dates presented (dollars in thousands):
| 6/30/2020 |  | 12/31/2019
| (unaudited) |  |
Assets: |  |  |  |  |
Real estate, net | $ | 1,203,277 |  |  | $ | 1,204,470 |
Other assets | 198,997 |  |  | 196,488 |
Total assets | $ | 1,402,274 |  |  | $ | 1,400,958 |
Liabilities and partners' capital: |  |  |  |  |
Mortgage notes payable, net (1) | $ | 780,217 |  |  | $ | 782,257 |
Other liabilities | 154,881 |  |  | 157,379 |
Partners' capital | 467,176 |  |  | 461,322 |
Total liabilities and partners' capital | $ | 1,402,274 |  |  | $ | 1,400,958 |
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(1) | The Company has not guaranteed the debt, nor does the Company have any obligation to fund this debt should the unconsolidated entity be unable to do so.
The following is a combined summary of the operating results of the entities accounted for using the equity method discussed above for the periods presented (dollars in thousands):
| For the three months ended |  | For the six months ended
| 6/30/2020 |  | 6/30/2019 |  | 6/30/2020 |  | 6/30/2019
| (unaudited) |  | (unaudited)
Rental and other income | $ | 30,427 |  |  | $ | 35,998 |  |  | $ | 63,499 |  |  | $ | 71,253 |
Operating and other expenses | (11,732 | ) |  | (13,885 | ) |  | (23,912 | ) |  | (28,089 | )
Gain on sale of communities | 40 |  |  | — |  |  | 40 |  |  | — |
Interest expense, net | (8,053 | ) |  | (8,543 | ) |  | (16,109 | ) |  | (17,096 | )
Depreciation expense | (8,713 | ) |  | (18,346 | ) |  | (17,402 | ) |  | (40,042 | )
Net income (loss) | $ | 1,969 |  |  | $ | (4,776 | ) |  | $ | 6,116 |  |  | $ | (13,974 | )
Company's share of net income (loss) | $ | 1,041 |  |  | $ | 730 |  |  | $ | 2,746 |  |  | $ | 202 |
Amortization of excess investment and other | (529 | ) |  | (533 | ) |  | (1,059 | ) |  | (1,065 | )
Equity in income (loss) from unconsolidated real estate investments | $ | 512 |  |  | $ | 197 |  |  | $ | 1,687 |  |  | $ | (863 | )
Expensed Transaction, Development and Other Pursuit Costs The Company capitalizes pre-development costs incurred in pursuit of new development opportunities for which the Company currently believes future development is probable ("Development Rights"). Future development of these Development Rights is dependent upon various factors, including zoning and regulatory approval, rental market conditions, construction costs and the availability of capital. Initial pre-development costs incurred for pursuits for which future development is not yet considered probable are expensed as incurred. In addition, if the status of a Development Right changes, making future development by the Company no longer probable, any non-recoverable capitalized pre-development costs are expensed. The Company expensed costs related to development pursuits not yet considered probable for development and the abandonment of Development Rights, as well as costs incurred in pursuing the acquisition or disposition of assets for which such acquisition and disposition activity did not occur, in the amounts of $388,000 and $1,766,000 for the three months ended June 30, 2020 and 2019, respectively, and $3,722,000 and $2,388,000 for the six months ended June 30, 2020 and 2019, respectively. These costs are included in expensed transaction, development and other pursuit costs, net of recoveries on the accompanying Condensed Consolidated Statements of Comprehensive Income. Abandoned pursuit costs can vary greatly, and the costs incurred in any given period may be significantly different in future periods. Casualty and Impairment of Long-Lived Assets In the Company's evaluation of its real estate portfolio for impairment, as discussed below, it considered the impact of the COVID-19 pandemic and did not identify any indicators of impairment as a result. The Company evaluates its real estate and other long-lived assets for impairment when potential indicators of impairment exist. Such assets are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is not recoverable. If events or circumstances indicate that the carrying amount of a property or long-lived asset may not be recoverable, the Company assesses its recoverability by comparing the carrying amount of the property or long-lived asset to its estimated undiscounted future cash flows. If the carrying amount exceeds the aggregate undiscounted future cash flows, the Company recognizes an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property or long-lived asset. Based on periodic tests of recoverability of long-lived assets, the Company did not recognize any impairment losses for the three and six months ended June 30, 2020 and 2019. The Company evaluates its for-sale condominium inventory for potential indicators of impairment, considering whether the fair value of the for-sale condominium units exceeds the carrying value. For-sale condominium inventory is stated at cost, unless the carrying amount of the inventory is not recoverable when compared to the fair value. The Company determines the fair value of its for-sale condominium inventory as the estimated sales price less direct costs to sell. For the three and six months ended June 30, 2020, the Company did not identify any indicators of impairment for its for-sale condominium inventory. The Company assesses its portfolio of land held for both development and investment for impairment if the intent of the Company changes with respect to either the development of, or the expected holding period for, the land. During the three and six months ended June 30, 2020 and 2019, the Company did not recognize any impairment charges on its investment in land. The Company evaluates its unconsolidated investments for other than temporary impairment, considering both the extent and amount by which the carrying value of the investment exceeds the fair value, and the Company's intent and ability to hold the investment to recover its carrying value. The Company also evaluates its proportionate share of any impairment of assets held by unconsolidated investments. There were no other than temporary impairment losses recognized for any of the Company's investments in unconsolidated real estate entities, or impairments recognized by those entities, during the three and six months ended June 30, 2020 and 2019.

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 + Details
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