XML 26 R16.htm IDEA: XBRL DOCUMENT
v3.20.2

Note 10 - Variable Interest Entities ("VIE") | 9 Months Ended
--- | ---
Sep. 30, 2020
Notes to Financial Statements |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 10. Variable Interest Entities (“VIE”) Included within the Company’s consolidated operating properties at both September 30, 2020 and December 31, 2019, are 22 consolidated entities that are VIEs, for which the Company is the primary beneficiary. These entities have been established to own and operate real estate property. The Company’s involvement with these entities is through its majority ownership and management of the properties. The entities were deemed VIEs primarily because the unrelated investors do not have substantive kick-out rights to remove the general or managing partner by a vote of a simple majority or less, and they do not have substantive participating rights. The Company determined that it was the primary beneficiary of these VIEs as a result of its controlling financial interest. At September 30, 2020, total assets of these VIEs were $1.0 billion and total liabilities were $64.7 million. At December 31, 2019, total assets of these VIEs were $0.9 billion and total liabilities were $70.9 million. The majority of the operations of these VIEs are funded with cash flows generated from the properties. The Company has not provided financial support to any of these VIEs that it was not previously contractually required to provide, which consists primarily of funding any capital expenditures, including tenant improvements, which are deemed necessary to continue to operate the entity and any operating cash shortfalls that the entity may experience. Additionally, included within the Company’s real estate development projects at December 31, 2019, is one consolidated entity that was a VIE, for which the Company was the primary beneficiary. This entity had been established to develop a real estate property to hold as a long-term investment. The Company’s involvement with this entity is through its majority ownership and management of the property. This entity was deemed a VIE primarily because the equity investments at risk were not sufficient to permit the entity to finance its activities without additional financial support. The initial equity contributed to this entity was not sufficient to fully finance the real estate construction as development costs are funded by the partners throughout the construction period. The Company determined that it was the primary beneficiary of this VIE as a result of its controlling financial interest. At December 31, 2019, total assets of this real estate development VIE were $346.9 million and total liabilities were $82.5 million. During the nine months ended September 30, 2020, the Company purchased the partner’s noncontrolling interest and maintains full ownership of the entity. As a result, the entity is no longer a VIE. All liabilities of these consolidated VIEs are non-recourse to the Company (“VIE Liabilities”). The assets of the unencumbered VIEs are not restricted for use to settle only the obligations of these VIEs. The remaining VIE assets are encumbered by third party non-recourse mortgage debt and a construction loan. The assets associated with these encumbered VIEs (“Restricted Assets”) are collateral under the respective mortgages and a construction loan and are therefore restricted and can only be used to settle the corresponding liabilities of the VIE. The table below summarizes the consolidated VIEs and the classification of the Restricted Assets and VIE Liabilities on the Company’s Condensed Consolidated Balance Sheets as follows (dollars in millions):
|  | As of September 30, 2020 |  |  | As of December 31, 201 9 |
Number of unencumbered VIEs |  |  | 19 |  |  |  | 19 |
Number of encumbered VIEs |  |  | 3 |  |  |  | 4 |
Total number of consolidated VIEs |  |  | 22 |  |  |  | 23 |
Restricted Assets: |  |  |  |  |  |  |  |
Real estate, net |  | $ | 98.3 |  |  | $ | 228.9 |
Cash and cash equivalents |  |  | 2.4 |  |  |  | 9.2 |
Accounts and notes receivable, net |  |  | 1.8 |  |  |  | 3.8 |
Other assets |  |  | 1.6 |  |  |  | 3.6 |
Total Restricted Assets |  | $ | 104.1 |  |  | $ | 245.5 |
VIE Liabilities: |  |  |  |  |  |  |  |
Mortgages and construction loan payable, net |  | $ | 37.0 |  |  | $ | 104.5 |
Other liabilities |  |  | 27.7 |  |  |  | 48.9 |
Total VIE Liabilities |  | $ | 64.7 |  |  | $ | 153.4 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -URI http://asc.fasb.org/topic&trid=2122149 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -URI http://asc.fasb.org/topic&trid=2197479 + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration