The Company accounts for its investments in and advances to unconsolidated affiliates primarily under the equity method of accounting as it has the ability to exercise significant influence, but does not have financial or operating control over the investment, which is maintained by each of the unaffiliated partners who co-invest with the Company. 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, 2021	2021		2020

Core:	840 N. Michigan^(a)	88.43%	$	54,924	$	55,863
	Renaissance Portfolio	20%		28,742		29,270
	Gotham Plaza	49%		28,589		28,683
	Georgetown Portfolio	50%		3,870		4,624
	1238 Wisconsin Avenue	80%		3,008		2,571
				119,133		121,011

Mervyns I & II:	KLA/ABS ^(b)	36.7%		78,526		72,391

Fund III:	Self Storage Management ^(c)	95%		207		207

Fund IV:	Fund IV Other Portfolio	98.57%		12,394		11,719
	650 Bald Hill Road	90%		12,532		12,550
				24,926		24,269

Fund V:	Family Center at Riverdale ^(a)	89.42%		12,679		11,824
	Tri-City Plaza	90%		7,309		7,024
	Frederick County Acquisitions	90%		10,647		10,837
				30,635		29,685

Various:	Due from (to) Related Parties			290		363
	Other ^(d)			2,615		1,881
	Investments in and advances to unconsolidated affiliates		$	256,332	$	249,807

Core:	Crossroads ^(e)	49%	$	15,272	$	15,616
	Distributions in excess of income from, and investments in, unconsolidated affiliates		$	15,272	$	15,616

On August 8, 2019, the Company invested $1.8 million in Fifth Wall Ventures Retail Fund, L.P. (“Fifth Wall”) Subsequent to its initial investment, the Company invested a total of $1.1 million through March 31, 2021. The Company accounts for its interest at cost less impairment given its ownership is less than five percent and the Company has no influence over the partnership’s operating and financial policies. During

the fourth quarter of 2020, the Company impaired $0.4 million of this investment (Note 8) reflecting management’s estimate of fair value at that date. At March 31, 2021, the Company’s investment was $2.5 million.

On April 1, 2020, the Company exchanged the remaining $38.7 million of Brandywine Notes Receivable (Note 3), plus accrued interest of $2.0 million for the remaining 24.78% interest in Town Center, thereby obtaining a 100% controlling interest in the property. The property was then consolidated (Note 2) and the Company recorded the remaining interest in the property investment at the carrying value of the notes.

During 2006, as part of a series of investments with a consortium of other investors known as the “RCP Venture”, Mervyns II acquired an indirect interest in Albertsons Companies, Inc. a private chain of grocery stores (“Albertsons”) through two 36.67% owned entities (KLA A Investments, LLC and ABS Opportunities, LLC, “KLA/ABS”). Its investment (the “Investment in Albertsons”) has been accounted for under the cost method as Mervyns II has no influence over operating and financial policies of KLA/ABS. Subsequent to the initial investment in 2006, Mervyns II received distributions from its Investment in Albertsons in excess of its initial contribution, which has been recognized in earnings. During the second and fourth quarters of 2020, Mervyns II realized gains of approximately $22.8 million and $0.4 million, respectively, from its Investment in Albertsons. The realized gains during the second quarter of 2020 resulted from the issuance and distribution of proceeds from a preferred equity investment and a sale of a portion of its investment in an initial public offering of Albertsons, both of which occurred in June 2020. Following these transactions, Mervyns II has retained an effective indirect ownership of approximately 4.1 million shares (approximately 1% interest) through its Investment in Albertsons, which it has accounted for at fair value following the initial public offering given the readily determinable fair value, resulting in an unrealized gain of approximately $64.9 million during the second quarter of 2020. During the year ended December 31, 2020, the Company recorded an additional net unrealized holding gain of $7.5 million reflecting the change in fair value of its Investment in Albertsons. During the three months ended March 31, 2021, Mervyns II realized gains of $0.4 million related to distributions from its Investment in Albertsons and recorded an additional net unrealized holding gain of $6.1 million reflecting the change in fair value of its Investment in Albertsons. The Company has reflected both the realized and net unrealized gain as Realized and unrealized holding gains on investments and other within its consolidated statements of operations. The Company has an effective ownership interest of 28.33% in Mervyns II.

On May 26, 2020, pursuant to the buy-sell provisions of the operating agreement of the Broughton Street Portfolio, Fund IV acquired all of the third-party equity of BSP II, which underlies two properties within Broughton Street Portfolio, for $1.3 million. These two BSP II properties were consolidated during the second quarter of 2020.

The Company earned property management, construction, development, legal and leasing fees from its investments in unconsolidated partnerships totaling $0.1 million for each of the three months ended March 31, 2021 and 2020, which are included in other revenues in the consolidated statements of operations.

In addition, the Company paid to certain unaffiliated partners of its joint ventures, $0.4 million and $1.0 million for the three months ended March 31, 2021 and 2020, respectively for leasing commissions, development, management, construction and overhead fees.

The following combined and condensed Balance Sheets and Statements of operations, in each period, summarize the financial information of the Company’s investments in unconsolidated affiliates that were held as of December 31, 2020, and accordingly exclude the results of any investments disposed of or consolidated prior to that date (in thousands):

	March 31, 2021		December 31, 2020
Combined and Condensed Balance Sheets
Assets:
Rental property, net	$	552,262	$	563,997
Real estate under development		15,907		14,517
Other assets		64,358		61,969
Total assets	$	632,527	$	640,483
Liabilities and partners’ equity:
Mortgage notes payable	$	505,245	$	512,490
Other liabilities		75,268		74,872
Partners’ equity		52,014		53,121
Total liabilities and partners’ equity	$	632,527	$	640,483

Company's share of accumulated equity	$	100,729	$	100,767
Basis differential		54,582		55,017
Deferred fees, net of portion related to the Company's interest		4,111		3,565
Amounts receivable/payable by the Company		290		363
Investments in and advances to unconsolidated affiliates, net of Company's share of distributions in excess of income from and investments in unconsolidated affiliates		159,712		159,712
Investments carried at fair value or cost		81,348		74,479
Company's share of distributions in excess of income from and investments in unconsolidated affiliates		15,272		15,616
Investments in and advances to unconsolidated affiliates	$	256,332	$	249,807

	Three Months Ended March 31,
	2021			2020
Combined and Condensed Statements of Operations
Total revenues	$	17,281		$	19,496
Operating and other expenses		(6,219	)		(6,579	)
Interest expense		(4,822	)		(5,256	)
Depreciation and amortization		(8,801	)		(6,360	)
Gain on disposition of properties^(a)		3,206			—
Net income attributable to unconsolidated affiliates	$	645		$	1,301

Company’s share of equity in net income of unconsolidated affiliates	$	2,699		$	334
Basis differential amortization		(436	)		(324	)
Company’s equity in earnings of unconsolidated affiliates	$	2,263		$	10