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Investments in Unconsolidated Joint Ventures | 9 Months Ended
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Sep. 30, 2023
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 within its unconsolidated joint ventures: 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 ("Seritage"), 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 twelve months ending December 31, 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). On November 14, 2022, the Company's joint venture in Washington Square closed on a four-year maturity date extension for the existing loan to November 1, 2026, including extension options. The Company's joint venture repaid $15,000 ($9,000 at the Company's pro rata share) of the outstanding loan balance. The loan bears interest at SOFR plus 4.0% and is covered by an interest rate cap agreement that effectively prevents SOFR from exceeding 4.0% through November 1, 2024. On March 3, 2023, the Company’s joint venture in Scottsdale Fashion Square replaced the existing $403,931 mortgage loan on the property with a $700,000 loan that bears interest at a fixed rate of 6.21%, is interest only during the entire loan term and matures on March 6, 2028. On April 25, 2023, the Company's joint venture in Deptford Mall closed on a three-year maturity date extension for the existing loan to April 3, 2026, including extension options. The Company's joint venture repaid $10,000 ($5,100 at the Company's pro rata share) of the outstanding loan balance at closing. The interest rate on the loan remains unchanged at 3.73%. Effective May 9, 2023, the Company’s joint venture in Country Club Plaza defaulted on the $295,210 ($147,605 at the Company’s pro rata share) non-recourse loan on the property. The Company’s joint venture is in negotiations with the lender on the terms of this non-recourse loan. During the three months ending September 30, 2023, the joint venture shortened the holding period of the property due to the uncertainty as to the outcome of discussions with the lender. As a result of shortening the holding period, the joint venture estimated the fair value of the asset and recorded an impairment loss. The Company's share of the impairment loss was $107,673 for the three and nine months ended September 30, 2023. On May 18, 2023, the Company acquired Seritage’s remaining 50% ownership interest in the MS Portfolio LLC joint venture that owns five former Sears parcels, for a total purchase price of $46,687. These parcels are located at Chandler Fashion Center, Danbury Fair Mall, Freehold Raceway Mall, Los Cerritos Center and Washington Square. The Company previously recorded an impairment loss of $50,197, at the Company’s share, during the three months ending March 31, 2023 as a result of the joint venture shortening the holding periods on these parcels. Upon the closing of this transaction, the Company recorded an additional loss of $1,166, at the Company’s share, during the three months ending June 30, 2023. Effective as of May 18, 2023, the Company now owns and has consolidated its 100% interest in these five former Sears parcels in its consolidated financial statements (See Note 15—Acquisitions). 4. Investments in Unconsolidated Joint Ventures: (Continued) 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, 2023 |  | December 31, 2022
Assets(1): |  |  |
Property, net | $ | 7,715,987 |  |  | $ | 8,156,632 |
Other assets | 662,274 |  |  | 664,036 |
Total assets | $ | 8,378,261 |  |  | $ | 8,820,668 |
Liabilities and partners' capital(1): |  |  |
Mortgage and other notes payable | $ | 5,760,372 |  |  | $ | 5,491,250 |
Other liabilities | 466,345 |  |  | 451,511 |
Company's capital | 1,145,464 |  |  | 1,528,348 |
Outside partners' capital | 1,006,080 |  |  | 1,349,559 |
Total liabilities and partners' capital | $ | 8,378,261 |  |  | $ | 8,820,668 |
Investments in unconsolidated joint ventures: |  |  |
Company's capital | $ | 1,145,464 |  |  | $ | 1,528,348 |
Basis adjustment(2) | (422,103) |  |  | (425,153) |
| $ | 723,361 |  |  | $ | 1,103,195 |
Assets—Investments in unconsolidated joint ventures | $ | 918,540 |  |  | $ | 1,224,288 |
Liabilities—Distributions in excess of investments in unconsolidated joint ventures | (195,179) |  |  | (121,093) |
| $ | 723,361 |  |  | $ | 1,103,195 |
(1) These amounts include assets of $2,642,242 and $2,690,651 of Pacific Premier Retail LLC (the "PPR Portfolio") as of September 30, 2023 and December 31, 2022, respectively, and liabilities of $1,599,413 and $1,611,661 of the PPR Portfolio as of September 30, 2023 and December 31, 2022, 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 (loss) income on a straight-line basis consistent with the lives of the underlying assets. The amortization of this difference was $(2,494) and $2,164 for the three months ended September 30, 2023 and 2022, respectively, and $(13,942) and $7,034 for the nine months ended September 30, 2023 and 2022, respectively. Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures:
| PPR Portfolio |  | Other Joint Ventures |  | Total
Three Months Ended September 30, 2023 |  |  |  |  |
Revenues: |  |  |  |  |
Leasing revenue | $ | 44,446 |  |  | $ | 173,735 |  |  | $ | 218,181 |
Other | 595 |  |  | 5,724 |  |  | 6,319 |
Total revenues | 45,041 |  |  | 179,459 |  |  | 224,500 |
Expenses: |  |  |  |  |
Shopping center and operating expenses | 11,794 |  |  | 64,556 |  |  | 76,350 |
Leasing expenses | 355 |  |  | 1,043 |  |  | 1,398 |
Interest expense | 21,916 |  |  | 51,302 |  |  | 73,218 |
Depreciation and amortization | 22,240 |  |  | 62,388 |  |  | 84,628 |
Total expenses | 56,305 |  |  | 179,289 |  |  | 235,594 |
Loss on sale or write down of assets, net | — |  |  | (194,601) |  |  | (194,601) |
Net loss | $ | (11,264) |  |  | $ | (194,431) |  |  | $ | (205,695) |
Company's equity in net loss | $ | (4,614) |  |  | $ | (102,851) |  |  | $ | (107,465) |
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 |
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, 2023 |  |  |  |  |
Revenues: |  |  |  |  |
Leasing revenue | $ | 129,613 |  |  | $ | 505,490 |  |  | $ | 635,103 |
Other | 1,770 |  |  | 14,011 |  |  | 15,781 |
Total revenues | 131,383 |  |  | 519,501 |  |  | 650,884 |
Expenses: |  |  |  |  |
Shopping center and operating expenses | 33,469 |  |  | 184,213 |  |  | 217,682 |
Leasing expenses | 1,349 |  |  | 3,968 |  |  | 5,317 |
Interest expense | 65,575 |  |  | 144,386 |  |  | 209,961 |
Depreciation and amortization | 67,446 |  |  | 188,125 |  |  | 255,571 |
Total expenses | 167,839 |  |  | 520,692 |  |  | 688,531 |
Loss on sale or write down of assets, net | — |  |  | (266,252) |  |  | (266,252) |
Net loss | $ | (36,456) |  |  | $ | (267,443) |  |  | $ | (303,899) |
Company's equity in net loss | $ | (15,329) |  |  | $ | (160,906) |  |  | $ | (176,235) |
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) |

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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 -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
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