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JOINT VENTURES AND PARTNERSHIPS (Tables) | 6 Months Ended
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Jun. 30, 2020
JOINT VENTURES AND PARTNERSHIPS |
Schedule of unconsolidated joint ventures and partnerships | The following table summarizes the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net, which are accounted for under the equity method of accounting as of June 30, 2020 and December 31, 2019 (dollars in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Number of | ​ | Number of | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Operating | ​ | Apartment | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | Income/(loss) from investments
​ | ​ | ​ | ​ | Communities | ​ | Homes | ​ | Investment at | ​ | UDR’s Ownership Interest | ​ | ​ | Three Months Ended | ​ | Six Months Ended
​ |  | Location of |  | June 30, |  | June 30, |  | June 30, |  | December 31, | ​ | June 30, |  | ​ | December 31, |  | ​ | June 30, | ​ | June 30,
Joint Venture |  | Properties |  | 2020 |  | 2020 |  | 2020 |  | 2019 | ​ | 2020 |  | ​ | 2019 |  | ​ | 2020 |  | 2019 | ​ | 2020 |  | 2019
Operating: | ​ |  | ​ |  | ​ |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
UDR/MetLife I | ​ | Los Angeles, CA | ​ | 1 | ​ | 150 | ​ | $ | 27,927 | ​ | $ | 28,812 | ​ | 50.0 | % | ​ | 50.0 | % | ​ | $ | (658) | ​ | $ | (548) | ​ | $ | (1,112) | ​ | $ | (1,124)
UDR/MetLife II |  | Various |  | 7 |  | 1,250 |  | ​ | 149,971 |  | ​ | 150,893 | ​ | 50.0 | % | ​ | 50.0 | % | ​ | ​ | 10 | ​ | ​ | 776 | ​ | ​ | (81) | ​ | ​ | 1,210
Other UDR/MetLife Joint Ventures |  | Various |  | 5 |  | 1,437 |  | ​ | 90,262 |  | ​ | 98,441 | ​ | 50.6 | % | ​ | 50.6 | % | ​ | ​ | (2,312) | ​ | ​ | (1,684) | ​ | ​ | (4,124) | ​ | ​ | (3,461)
West Coast Development Joint Ventures | ​ | Los Angeles, CA | ​ | 1 | ​ | 293 | ​ | ​ | 34,428 | ​ | ​ | 34,907 | ​ | 47.0 | % | ​ | 47.0 | % | ​ | ​ | (56) | ​ | ​ | (359) | ​ | ​ | (136) | ​ | ​ | (507)
Sold Joint Ventures | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | — | ​ | — | % | ​ | — | % | ​ | ​ | — | ​ | ​ | 3,867 | ​ | ​ | — | ​ | ​ | 2,047
Investment in and advances to unconsolidated joint ventures, net, before preferred equity investments and other investments |  |  | ​ | $ | 302,588 | ​ | $ | 313,053 | ​ |  |  | ​ |  | ​ | ​ | $ | (3,016) | ​ | $ | 2,052 | ​ | $ | (5,453) | ​ | $ | (1,835)
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Income/(loss) from investments | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Investment at | ​ | Three Months Ended | ​ | Six Months Ended | ​
Developer Capital Program |  | ​ |  | ​ |  | Years To | ​ | UDR |  | June 30, |  | December 31, |  | June 30, | ​ | June 30, | ​
and Other Investments (a) |  | Location |  | Rate |  | Maturity | ​ | Commitment (b) |  | 2020 |  | 2019 |  | 2020 |  | 2019 |  | 2020 |  | 2019 | ​
Preferred equity investments: |  |  |  |  |  |  | ​ | ​ | ​ | ​ |  |  | ​ |  |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ |  | ​
West Coast Development Joint Ventures (c) |  | Hillsboro, OR |  | 6.5 | % | N/A | ​ | $ | — | ​ | $ | — | ​ | $ | 17,064 | ​ | $ | — | ​ | $ | (10) | ​ | $ | (46) | ​ | $ | (171) | ​
1532 Harrison | ​ | San Francisco, CA | ​ | 11.0 | % | 2.0 | ​ | ​ | 24,645 | ​ | ​ | 32,282 | ​ | ​ | 30,585 | ​ | ​ | 846 | ​ | ​ | 774 | ​ | ​ | 1,682 | ​ | ​ | 1,522 | ​
1200 Broadway (d) | ​ | Nashville, TN | ​ | 8.0 | % | 2.3 | ​ | ​ | 55,558 | ​ | ​ | 66,575 | ​ | ​ | 63,958 | ​ | ​ | 1,306 | ​ | ​ | 1,206 | ​ | ​ | 2,587 | ​ | ​ | 2,375 | ​
Junction | ​ | Santa Monica, CA | ​ | 12.0 | % | 2.1 | ​ | ​ | 8,800 | ​ | ​ | 11,016 | ​ | ​ | 10,379 | ​ | ​ | 323 | ​ | ​ | 287 | ​ | ​ | 637 | ​ | ​ | 562 | ​
1300 Fairmount (d) | ​ | Philadelphia, PA | ​ | Variable | ​ | 3.1 | ​ | ​ | 51,393 | ​ | ​ | 57,031 | ​ | ​ | 51,215 | ​ | ​ | 1,191 | ​ | ​ | 519 | ​ | ​ | 2,357 | ​ | ​ | 794 | ​
Essex | ​ | Orlando, FL | ​ | 12.5 | % | 3.2 | ​ | ​ | 12,886 | ​ | ​ | 15,751 | ​ | ​ | 14,804 | ​ | ​ | 481 | ​ | ​ | 407 | ​ | ​ | 947 | ​ | ​ | 739 | ​
Modera Lake Merritt (d) | ​ | Oakland, CA | ​ | 9.0 | % | 3.8 | ​ | ​ | 27,250 | ​ | ​ | 29,562 | ​ | ​ | 22,653 | ​ | ​ | 652 | ​ | ​ | 256 | ​ | ​ | 1,226 | ​ | ​ | 256 | ​
Thousand Oaks (e) | ​ | Thousand Oaks, CA | ​ | 9.0 | % | 4.7 | ​ | ​ | 20,059 | ​ | ​ | 8,872 | ​ | ​ | — | ​ | ​ | 153 | ​ | ​ | — | ​ | ​ | 177 | ​ | ​ | — | ​
Other investments: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
The Portals | ​ | Washington, D.C. | ​ | 11.0 | % | 0.9 | ​ | ​ | 38,559 | ​ | ​ | 50,713 | ​ | ​ | 48,181 | ​ | ​ | 1,389 | ​ | ​ | 1,234 | ​ | ​ | 2,724 | ​ | ​ | 2,407 | ​
Other investment ventures | ​ | N/A | ​ | N/A | ​ | N/A | ​ | $ | 34,500 | ​ | ​ | 19,885 | ​ | ​ | 13,598 | ​ | ​ | 4,696 | ​ | ​ | (100) | ​ | ​ | 4,550 | ​ | ​ | 25 | ​
Total Preferred Equity Investments and Other Investments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 291,687 | ​ | ​ | 272,437 | ​ | ​ | 11,037 | ​ | ​ | 4,573 | ​ | ​ | 16,841 | ​ | ​ | 8,509 | ​
Total Joint Ventures and Developer Capital Program Investments, net (f) | ​ | ​ | ​ | ​ | $ | 594,275 | ​ | $ | 585,490 | ​ | $ | 8,021 |  | $ | 6,625 | ​ | $ | 11,388 |  | $ | 6,674 | ​
(a) | The Developer Capital Program is the program through which the Company makes investments, including preferred
| equity investments, mezzanine loans or other structured investments that may receive a fixed yield on the investment and may include provisions pursuant to which the Company participates in the increase in value of the property upon monetization of the applicable property and/or holds fixed price purchase options.
(b) | Represents UDR’s maximum funding commitment only and therefore excludes other activity such as income from investments.
(c) | In January 2020, the Company increased its ownership interest from 49% to 100% in the 276 apartment home operating community located in Hillsboro, Oregon, for a cash purchase price of approximately $21.6 million. As a result, the Company consolidated the operating community and it is no longer accounted for as a preferred equity investment in an unconsolidated joint venture (see Note 3, Real Estate Owned). In connection with the purchase, the Company repaid the joint venture’s construction loan of approximately $35.6 million.
(d) | The Company’s preferred equity investment receives a variable percentage of the value created from the project upon a capital or liquidating event.
(e) | In February 2020, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 142 apartment home community in Thousand Oaks, CA. The Company’s preferred equity investment of up to $20.1 million earns a preferred return of 9.0% per annum and receives a variable percentage of the value created from the project upon a capital or liquidating event. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting.
(f) | As of June 30, 2020, the Company’s negative investment in 13th and Market Properties LLC of $3.8 million is included in Other UDR/MetLife Joint Ventures in the table above and recorded in Accounts payable, accrued expenses, and other liabilities on the Consolidated Balance Sheet.
Combined summary of balance sheets relating to unconsolidated joint ventures and partnerships | Combined summary balance sheets relating to the unconsolidated joint ventures’ and partnerships’ (not just our proportionate share) are presented below as of June 30, 2020 and December 31, 2019 (dollars in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2020 |  | 2019
Total real estate, net |  | $ | 1,922,313 |  | $ | 1,901,081
Cash and cash equivalents | ​ |  | 30,656 | ​ |  | 29,823
Other assets | ​ | ​ | 216,356 | ​ |  | 172,941
Total assets |  | $ | 2,169,325 |  | $ | 2,103,845
​ | ​ | ​ | ​ | ​ | ​ | ​
Third party debt, net | ​ | $ | 1,156,834 | ​ | $ | 1,148,048
Accounts payable and accrued liabilities | ​ | ​ | 46,057 | ​ | ​ | 55,114
Total liabilities |  | ​ | 1,202,891 |  | ​ | 1,203,162
Total equity |  | $ | 966,434 |  | $ | 900,683
Schedule of combined financial information relating to unconsolidated joint ventures and partnerships operations (not just proportionate share) | Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three and six months ended June 30, 2020 and 2019 (dollars in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Six Months Ended
​ | ​ | June 30, | ​ | June 30,
​ |  | 2020 |  | 2019 |  | 2020 |  | 2019
Total revenues |  | $ | 37,312 |  | $ | 76,926 |  | $ | 78,626 |  | $ | 158,458
Property operating expenses | ​ |  | 14,468 | ​ |  | 29,256 | ​ |  | 29,765 | ​ |  | 59,568
Real estate depreciation and amortization | ​ |  | 16,913 | ​ |  | 28,054 | ​ |  | 33,156 | ​ |  | 57,634
Operating income/(loss) | ​ |  | 5,931 | ​ | ​ | 19,616 | ​ |  | 15,705 | ​ | ​ | 41,256
Interest expense | ​ |  | (10,149) | ​ |  | (21,606) | ​ |  | (20,496) | ​ |  | (43,530)
Gain/(loss) on sale of property | ​ | ​ | — | ​ | ​ | 18,357 | ​ | ​ | — | ​ | ​ | 18,357
Net unrealized gain/(loss) on held investments | ​ | ​ | 29,312 | ​ | ​ | — | ​ | ​ | 29,312 | ​ | ​ | —
Other income/(loss) | ​ | ​ | 117 | ​ | ​ | 9 | ​ | ​ | 109 | ​ | ​ | 1,634
Net income/(loss) |  | $ | 25,211 |  | $ | 16,376 |  | $ | 24,630 |  | $ | 17,717

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- Definition Tabular disclosure of equity method investments including, but not limited to, name of each investee or group of investments, percentage ownership, difference between recorded amount of an investment and the value of the underlying equity in the net assets, and summarized financial information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571 + Details
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