Investments in and Advances to Unconsolidated Affiliates (Tables)

9 Months Ended

Sep. 30, 2019

Equity Method Investments And Joint Ventures [Abstract]

The Company’s investments in and advances to unconsolidated affiliates consist of the following (dollars in thousands):

		Ownership Interest	September 30,			December 31,
Portfolio	Property	September 30, 2019	2019			2018
Core:
	840 N. Michigan^(a)	88.43%	$	63,925		$	65,013
	Renaissance Portfolio	20%		32,458			32,458
	Gotham Plaza	49%		29,463			29,550
	Town Center^{(a, b)}	75.22%		98,243			99,758
	Georgetown Portfolio	50%		4,738			4,653
				228,827			231,432

Mervyns I & II:	KLA/Mervyn's, LLC ^(c)	10.5%		—			—

Fund III:
	Fund III Other Portfolio	90%		17			21
	Self Storage Management ^(d)	95%		206			206
				223			227
Fund IV:
	Broughton Street Portfolio ^(e)	50%		12,650			3,236
	Fund IV Other Portfolio	90%		14,353			14,540
	650 Bald Hill Road	90%		12,504			12,880
				39,507			30,656

Fund V:	Family Center at Riverdale ^(a)	89.42%		13,818			—
	Tri-City Plaza	90%		36,106			—
	Washington REIT Portfolio	90%		52,463			—
				102,387			—

Various:	Due (to) from Related Parties			(827	)		(461	)
	Other ^(f)			2,361			556
	Investments in and advances to unconsolidated affiliates		$	372,478		$	262,410

Core:
	Crossroads ^(g)	49%	$	15,353		$	15,623
	Distributions in excess of income from, and investments in, unconsolidated affiliates		$	15,353		$	15,623

(a)

Represents a tenancy-in-common interest.

(b)

During November 2017 and March 2018, as discussed below, the Company increased its ownership in Town Center.

(c)

Distributions, discussed below, have exceeded the Company’s non-recourse investment, therefore the carrying value is zero.

(d)

Represents a variable interest entity for which the Company was determined not to be the primary beneficiary.

(e)

The Company is entitled to a 15% return on its cumulative capital contribution which was $5.9 million and $3.0 million at September 30, 2019 and December 31, 2018, respectively. In addition, the Company is entitled to a 9% preferred return on a portion of its equity, which was $9.4 million and $2.8 million at September 30, 2019 and December 31, 2018, respectively.

(f)

Includes cost-method investments in Albertson’s (Note 8), Storage Post, Fifth Wall and other investments.

(g)

Distributions have exceeded the Company’s investment; however, the Company recognizes a liability balance as it may be required to return distributions to fund future obligations of the entity.

Schedule of Condensed Balance Sheet

The following combined and condensed Balance Sheets and Statements of Income, in each period, summarize the financial information of the Company’s investments in unconsolidated affiliates (in thousands):

	September 30, 2019			December 31, 2018
Combined and Condensed Balance Sheets
Assets:
Rental property, net	$	644,970		$	487,846
Investment in unconsolidated affiliates		—			—
Other assets		82,302			89,890
Total assets	$	727,272		$	577,736
Liabilities and partners’ equity:
Mortgage notes payable	$	496,371		$	408,967
Other liabilities		63,478			54,585
Partners’ equity		167,423			114,184
Total liabilities and partners’ equity	$	727,272		$	577,736

Company's share of accumulated equity	$	249,480		$	139,028
Basis differential		101,658			103,812
Deferred fees, net of portion related to the Company's interest		4,247			3,646
Amounts payable by the Company		(827	)		(461	)
Investments in and advances to unconsolidated affiliates, net of Company's share of distributions in excess of income from and investments in unconsolidated affiliates		354,558			246,025
Cost method investments		2,567			762
Company's share of distributions in excess of income from and investments in unconsolidated affiliates		15,353			15,623
Investments in and advances to unconsolidated affiliates	$	372,478		$	262,410

Schedule of Condensed Income Statement

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Combined and Condensed Statements of Income
Total revenues	$	22,310		$	19,971		$	65,023		$	59,730
Operating and other expenses		(6,746	)		(6,028	)		(17,088	)		(17,479	)
Interest expense		(5,888	)		(5,240	)		(16,303	)		(15,365	)
Depreciation and amortization		(7,321	)		(5,502	)		(17,908	)		(17,340	)
Loss on disposition of properties		—			(263	)		—			(1,673	)
Net income attributable to unconsolidated affiliates	$	2,355		$	2,938		$	13,724		$	7,873

Company’s share of equity in net income of unconsolidated affiliates	$	2,006		$	1,136		$	9,283		$	9,396
Basis differential amortization		(707	)		(760	)		(2,154	)		(2,317	)
Company’s equity in earnings of unconsolidated affiliates	$	1,299		$	376		$	7,129		$	7,079