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Investments in Unconsolidated Joint Ventures | 9 Months Ended
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Sep. 30, 2022
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures: The Company has made the following recent financings or other events of its unconsolidated joint ventures: On March 29, 2021, concurrent with the sale of Paradise Valley Mall (see Note 16 – Dispositions), the Company elected to reinvest into the newly formed joint venture at a 5% ownership interest for $3,819 in cash that is accounted for under the equity method of accounting. On October 26, 2021, the Company's joint venture in The Shops at Atlas Park replaced the existing loan on the property with a new $65,000 loan that bears interest at a floating rate of LIBOR plus 4.15% and matures on November 9, 2026, including extension options. The loan is covered by an interest rate cap agreement that effectively prevents LIBOR from exceeding 3.0% through November 7, 2023. On December 31, 2021, the Company assigned its joint venture interest in The Shops at North Bridge in Chicago, Illinois to its partner in the joint venture. The assignment included the assumption by the joint venture partner of the Company’s share of the debt owed by the joint venture and no cash consideration was received by the Company. The Company recognized a loss of $28,276 in connection with the assignment. On December 31, 2021, the Company sold its joint venture interest in the undeveloped property at 443 North Wabash Avenue in Chicago, Illinois to its partner in the joint venture for $21,000. The Company recognized an immaterial gain in connection with the sale. On February 2, 2022, the Company’s joint venture in FlatIron Crossing replaced the existing $197,011 loan on the property with a new $175,000 loan that bears interest at the Secured Overnight Financing Rate ("SOFR") plus 3.70% and matures on February 9, 2025, including extension options. The loan is covered by an interest rate cap agreement that effectively prevents SOFR from exceeding 4.0% through February 15, 2024. On August 2, 2022, the Company acquired the remaining 50% ownership interest in two former Sears parcels (Deptford Mall and Vintage Faire Mall) in MS Portfolio LLC, the Company's joint venture with Seritage Growth Properties, for a total purchase price of approximately $24,544. As a result of this transaction and the shortening of holding periods on certain other assets in the joint venture, an impairment loss was recorded for the nine months ending September 30, 2022. The Company's share of the impairment loss was $27,054. Effective as of August 2, 2022, the Company now owns and has consolidated its 100% interest in these two former Sears parcels in its consolidated financial statements (See Note 15—Acquisitions). The Company's joint venture in Washington Square expects to close in November 2022 a four-year extension, including options, on the $519,848 loan on the property, at a floating interest rate of SOFR plus 4.0%, subject to negotiating final loan terms and documentation and customary closing conditions. Combined and condensed balance sheets and statements of operations are presented below for all unconsolidated joint ventures. Combined and Condensed Balance Sheets of Unconsolidated Joint Ventures:
| September 30, 2022 |  | December 31, 2021
Assets(1): |  |  |
Property, net | $ | 8,149,910 |  |  | $ | 8,289,412 |
Other assets | 654,721 |  |  | 750,629 |
Total assets | $ | 8,804,631 |  |  | $ | 9,040,041 |
Liabilities and partners' capital(1): |  |  |
Mortgage and other notes payable | $ | 5,488,671 |  |  | $ | 5,686,500 |
Other liabilities | 475,780 |  |  | 325,115 |
Company's capital | 1,509,376 |  |  | 1,638,112 |
Outside partners' capital | 1,330,804 |  |  | 1,390,314 |
Total liabilities and partners' capital | $ | 8,804,631 |  |  | $ | 9,040,041 |
Investments in unconsolidated joint ventures: |  |  |
Company's capital | $ | 1,509,376 |  |  | $ | 1,638,112 |
Basis adjustment(2) | (432,018) |  |  | (448,149) |
| $ | 1,077,358 |  |  | $ | 1,189,963 |
Assets—Investments in unconsolidated joint ventures | $ | 1,204,153 |  |  | $ | 1,317,571 |
Liabilities—Distributions in excess of investments in unconsolidated joint ventures | (126,795) |  |  | (127,608) |
| $ | 1,077,358 |  |  | $ | 1,189,963 |
(1) These amounts include assets of $2,704,552 and $2,789,568 of Pacific Premier Retail LLC (the "PPR Portfolio") as of September 30, 2022 and December 31, 2021, respectively, and liabilities of $1,640,093 and $1,661,110 of the PPR Portfolio as of September 30, 2022 and December 31, 2021, respectively. (2) The Company amortizes the difference between the cost of its investments in unconsolidated joint ventures and the book value of the underlying equity into income on a straight-line basis consistent with the lives of the underlying assets. The amortization of this difference was $2,164 and $2,768 for the three months ended September 30, 2022 and 2021, respectively, and $7,034 and $7,431 for the nine months ended September 30, 2022 and 2021, respectively. Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures:
| PPR Portfolio |  | Other Joint Ventures |  | Total
Three Months Ended September 30, 2022 |  |  |  |  |
Revenues: |  |  |  |  |
Leasing revenue | $ | 44,157 |  |  | $ | 164,518 |  |  | $ | 208,675 |
Other | 151 |  |  | 1,934 |  |  | 2,085 |
Total revenues | 44,308 |  |  | 166,452 |  |  | 210,760 |
Expenses: |  |  |  |  |
Shopping center and operating expenses | 10,949 |  |  | 59,450 |  |  | 70,399 |
Leasing expenses | 424 |  |  | 1,203 |  |  | 1,627 |
Interest expense | 15,546 |  |  | 37,556 |  |  | 53,102 |
Depreciation and amortization | 24,269 |  |  | 64,002 |  |  | 88,271 |
Total expenses | 51,188 |  |  | 162,211 |  |  | 213,399 |
Gain on sale or write down of assets, net | — |  |  | 25,788 |  |  | 25,788 |
Net (loss) income | $ | (6,880) |  |  | $ | 30,029 |  |  | $ | 23,149 |
Company's equity in net income | $ | 1,851 |  |  | $ | 4,471 |  |  | $ | 6,322 |
Three Months Ended September 30, 2021 |  |  |  |  |
Revenues: |  |  |  |  |
Leasing revenue | $ | 44,304 |  |  | $ | 160,044 |  |  | $ | 204,348 |
Other | 14 |  |  | 6,658 |  |  | 6,672 |
Total revenues | 44,318 |  |  | 166,702 |  |  | 211,020 |
Expenses: |  |  |  |  |
Shopping center and operating expenses | 10,078 |  |  | 67,627 |  |  | 77,705 |
Leasing expenses | 332 |  |  | 963 |  |  | 1,295 |
Interest expense | 15,801 |  |  | 36,483 |  |  | 52,284 |
Depreciation and amortization | 24,154 |  |  | 61,734 |  |  | 85,888 |
Total expenses | 50,365 |  |  | 166,807 |  |  | 217,172 |
Gain on sale or write down of assets, net | — |  |  | 762 |  |  | 762 |
Net (loss) income | $ | (6,047) |  |  | $ | 657 |  |  | $ | (5,390) |
Company's equity in net loss | $ | (1,390) |  |  | $ | (343) |  |  | $ | (1,733) |
Significant accounting policies used by the unconsolidated joint ventures are similar to those used by the Company. Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures:
| PPR Portfolio |  | Other Joint Ventures |  | Total
Nine Months Ended September 30, 2022 |  |  |  |  |
Revenues: |  |  |  |  |
Leasing revenue | $ | 136,344 |  |  | $ | 488,513 |  |  | $ | 624,857 |
Other | 269 |  |  | 12,040 |  |  | 12,309 |
Total revenues | 136,613 |  |  | 500,553 |  |  | 637,166 |
Expenses: |  |  |  |  |
Shopping center and operating expenses | 31,807 |  |  | 172,681 |  |  | 204,488 |
Leasing expenses | 1,258 |  |  | 3,724 |  |  | 4,982 |
Interest expense | 46,299 |  |  | 109,881 |  |  | 156,180 |
Depreciation and amortization | 72,760 |  |  | 195,408 |  |  | 268,168 |
Total expenses | 152,124 |  |  | 481,694 |  |  | 633,818 |
Loss on sale or write down of assets, net | — |  |  | (30,870) |  |  | (30,870) |
Net loss | $ | (15,511) |  |  | $ | (12,011) |  |  | $ | (27,522) |
Company's equity in net loss | $ | (2,354) |  |  | $ | (14,068) |  |  | $ | (16,422) |
Nine Months Ended September 30, 2021 |  |  |  |  |
Revenues: |  |  |  |  |
Leasing revenue | $ | 122,311 |  |  | $ | 459,826 |  |  | $ | 582,137 |
Other | 144 |  |  | 56,508 |  |  | 56,652 |
Total revenues | 122,455 |  |  | 516,334 |  |  | 638,789 |
Expenses: |  |  |  |  |
Shopping center and operating expenses | 29,339 |  |  | 183,013 |  |  | 212,352 |
Leasing expenses | 1,106 |  |  | 3,423 |  |  | 4,529 |
Interest expense | 47,438 |  |  | 110,586 |  |  | 158,024 |
Depreciation and amortization | 73,042 |  |  | 192,149 |  |  | 265,191 |
Total expenses | 150,925 |  |  | 489,171 |  |  | 640,096 |
Gain on sale or write down of assets, net | — |  |  | 581 |  |  | 581 |
Net (loss) income | $ | (28,470) |  |  | $ | 27,744 |  |  | $ | (726) |
Company's equity in net (loss) income | $ | (10,269) |  |  | $ | 30,481 |  |  | $ | 20,212 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI https://asc.fasb.org/topic&trid=2196965 + Details
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