Investments in and Advances to Unconsolidated Affiliates (Tables)

3 Months Ended

Mar. 31, 2020

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	March 31,			December 31,
Portfolio	Property	March 31, 2020	2020			2019
Core:
	840 N. Michigan^(a)	88.43%	$	60,005		$	61,260
	Renaissance Portfolio	20%		30,947			31,815
	Gotham Plaza	49%		28,982			29,466
	Town Center^{(a, b)}	75.22%		96,816			97,674
	Georgetown Portfolio	50%		4,490			4,498
	1238 Wisconsin Avenue	80%		1,848			1,194
				223,088			225,907

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

Fund III:
	Fund III Other Portfolio	94.23%		17			17
	Self Storage Management ^(d)	95%		207			207
				224			224
Fund IV:
	Broughton Street Portfolio ^(e)	50%		12,764			12,702
	Fund IV Other Portfolio	98.57%		13,301			14,733
	650 Bald Hill Road	90%		12,346			12,450
				38,411			39,885

Fund V:	Family Center at Riverdale ^(a)	89.42%		11,983			13,329
	Tri-City Plaza	90%		8,412			10,250
	Frederick County Acquisitions	90%		12,462			15,070
				32,857			38,649

Various:	Due to Related Parties			(2,960	)		(1,902	)
	Other ^(f)			2,575			2,334
	Investments in and advances to unconsolidated affiliates		$	294,195		$	305,097

Core:
	Crossroads ^(g)	49%	$	15,457		$	15,362
	Distributions in excess of income from, and investments in, unconsolidated affiliates		$	15,457		$	15,362

(a)

Represents a tenancy-in-common interest.

(b)

During November 2017, March 2018 and April 2020 (Note 15), 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)

Also referred to as “BSP II” as discussed further below. The Company is entitled to a 15% return on its cumulative capital contribution which was $5.9 million at both March 31, 2020 and December 31, 2019. In addition, the Company is entitled to a 9% preferred return on a portion of its equity, which was $9.4 million at both March 31, 2020 and December 31, 2019.

(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):

	March 31, 2020			December 31, 2019
Combined and Condensed Balance Sheets
Assets:
Rental property, net	$	660,954		$	656,265
Real estate under development		2,021			1,341
Other assets		78,573			85,540
Total assets	$	741,548		$	743,146
Liabilities and partners’ equity:
Mortgage notes payable	$	506,777		$	502,036
Other liabilities		85,097			77,785
Partners’ equity		149,674			163,325
Total liabilities and partners’ equity	$	741,548		$	743,146

Company's share of accumulated equity	$	177,207		$	186,864
Basis differential		100,269			100,962
Deferred fees, net of portion related to the Company's interest		1,440			1,270
Amounts payable by the Company		(2,960	)		(1,902	)
Investments in and advances to unconsolidated affiliates, net of Company's share of distributions in excess of income from and investments in unconsolidated affiliates		275,956			287,194
Cost method investments		2,782			2,541
Company's share of distributions in excess of income from and investments in unconsolidated affiliates		15,457			15,362
Investments in and advances to unconsolidated affiliates	$	294,195		$	305,097

Schedule of Condensed Income Statement

	Three Months Ended March 31,
	2020			2019
Combined and Condensed Statements of Income
Total revenues	$	24,112		$	19,973
Operating and other expenses		(8,135	)		(5,106	)
Interest expense		(5,489	)		(4,776	)
Depreciation and amortization		(7,096	)		(4,792	)
Net income attributable to unconsolidated affiliates	$	3,392		$	5,299

Company’s share of equity in net income of unconsolidated affiliates	$	1,948		$	2,995
Basis differential amortization		(693	)		(724	)
Company’s equity in earnings of unconsolidated affiliates	$	1,255		$	2,271