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Investments in and Advances to Unconsolidated Affiliates | 3 Months Ended
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Mar. 31, 2022
Equity Method Investments and Joint Ventures [Abstract] |
Investments in and Advances to Unconsolidated Affiliates | 4. Investments in and Advance s to Unconsolidated Affiliates 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, 2022 |  | 2022 |  |  | 2021 |
Core: |  | 840 N. Michigan (a) |  | 88.43% |  | $ | 51,858 |  |  | $ | 51,513 |
|  | Renaissance Portfolio |  | 20% |  |  | 28,985 |  |  |  | 28,466 |
|  | Gotham Plaza |  | 49% |  |  | 29,202 |  |  |  | 29,187 |
|  | Georgetown Portfolio |  | 50% |  |  | 4,103 |  |  |  | 4,089 |
|  | 1238 Wisconsin Avenue (b) |  | 80% |  |  | 6,954 |  |  |  | 5,895 |
|  |  |  |  |  |  | 121,102 |  |  |  | 119,150 |
Mervyns II: |  | KLA/ABS (c) |  | 36.7% |  |  | 136,916 |  |  |  | 124,316 |
Fund III: |  | Self Storage Management (b) |  | 0% |  |  | — |  |  |  | 207 |
|  | 640 Broadway (d) |  | 63.13% |  |  | — |  |  |  | 17,825 |
|  |  |  |  |  |  | — |  |  |  | 18,032 |
Fund IV: |  | Fund IV Other Portfolio |  | 98.57% |  |  | 12,243 |  |  |  | 12,675 |
|  | 650 Bald Hill Road |  | 90% |  |  | 10,819 |  |  |  | 11,677 |
|  | Paramus Plaza |  | 50% |  |  | 1,716 |  |  |  | 1,975 |
|  |  |  |  |  |  | 24,778 |  |  |  | 26,327 |
Fund V: |  | Family Center at Riverdale (a) |  | 89.42% |  |  | 12,032 |  |  |  | 12,449 |
|  | Tri-City Plaza |  | 90% |  |  | 7,888 |  |  |  | 6,827 |
|  | Frederick County Acquisitions |  | 90% |  |  | 12,445 |  |  |  | 10,748 |
|  | Wood Ridge Plaza |  | 90% |  |  | 15,746 |  |  |  | — |
|  | La Frontera Village (e) |  | 90% |  |  | 78,281 |  |  |  | — |
|  |  |  |  |  |  | 126,392 |  |  |  | 30,024 |
Various: |  | Due from (to) Related Parties |  |  |  |  | 142 |  |  |  | 666 |
|  | Other (f) |  |  |  |  | 3,811 |  |  |  | 3,811 |
|  | Investments in and advances to unconsolidated affiliates |  |  |  | $ | 413,141 |  |  | $ | 322,326 |
Core: |  | Crossroads (g) |  | 49% |  | $ | 9,547 |  |  | $ | 9,939 |
|  | Distributions in excess of income from, and investments in, unconsolidated affiliates |  |  |  | $ | 9,547 |  |  | $ | 9,939 |
a) Represents a tenancy-in-common interest. b) Represents a variable interest entity for which the Company was determined not to be the primary beneficiary. c) Includes an interest in Albertsons at fair value, as described below ("Investment in Albertsons") (Note 8). d) In January 2022, the Company foreclosed on partner's interest and now owns 100% and consolidates the entity (Note 2). e) Includes $52.0 million in bridge financing to the entity from the Company at 10.0% d ue on October 1, 2022. f) Includes cost-method investments in 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. During the three months ended March 31, 2022, the Company: • through Fund V, acquired a 90% interest in a venture for $26.5 million, which acquired La Frontera Village, a shopping center located in Round Rock, Texas for $81.4 million. In addition, Fund V made a bridge loan to the entity for $52.0 million. • through Fund V, acquired a 90% interest in a venture for $15.3 million, which acquired Wood Ridge Plaza, a shopping center located in Houston, Texas for $49.3 million. In addition, on March 21, 2022 the Wood Ridge Plaza venture entered into a $36.6 million mortgage loan, of which $32.3 million was funded at closing. • through Fund III, foreclosed on the remaining 37% interest in 640 Broadway. Accordingly, the Company now consolidates this property (Note 2) • through Fund III, sold its investment in Self Storage Management for $6.0 million and recognized its proportionate gain of approximately $1.5 million, which is included in Realized and unrealized holding gains on investments and other in the consolidated statements of income. • received a cash dividend in the amount of $0.5 million at Mervyns II related to distributions from its Investment in Albertsons and recorded a net unrealized holding gain of $12.6 million reflecting the change in fair value of its Investment in Albertsons. During the year ended December 31, 2021, the Company: • received dividends of $1.7 million at Mervyns II related to distributions from its Investment in Albertsons and recorded a net unrealized holding gain of $51.9 million reflecting the change in fair value of its Investment in Albertsons • on January 4, 2021, Fund V sold two land parcels at its unconsolidated Family Center at Riverdale property for a total of $10.5 million, repaid $7.9 million of the related mortgage and the venture recognized a gain of $3.2 million, of which the Company's share was $0.6 million; • called capital for its Crossroads investment of $7.5 million, of which the venture partner's share was $5.4 million; and • made a capital contribution to its Fifth Wall investment in the amount of $1.9 million. Fees from Unconsolidated Affiliates 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, 2022 and 2021, which are included in other revenues in the consolidated statements of income. In addition, the Company's joint ventures paid to certain unaffiliated partners of its joint ventures, $0.3 million and $0.4 million for the three months ended March 31, 2022 and 2021, respectively, for leasing commissions, development, management, construction and overhead fees. Summarized Financial Information of Unconsolidated Affiliates 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 that were held as of March 31, 2022, and accordingly exclude the results of any investments disposed of or consolidated prior to that date (in thousands):
|  | March 31, |  |  | December 31, |
|  | 2022 |  |  | 2021 |
Combined and Condensed Balance Sheets |  |  |  |  |  |
Assets: |  |  |  |  |  |
Rental property, net |  | $ | 698,314 |  |  | $ | 631,661 |
Real estate under development |  |  | 9,389 |  |  |  | 8,112 |
Other assets |  |  | 116,690 |  |  |  | 78,300 |
Total assets |  | $ | 824,393 |  |  | $ | 718,073 |
Liabilities and partners’ equity: |  |  |  |  |  |
Mortgage notes payable |  | $ | 618,824 |  |  | $ | 571,461 |
Other liabilities |  |  | 82,688 |  |  |  | 69,166 |
Partners’ equity |  |  | 122,881 |  |  |  | 77,446 |
Total liabilities and partners’ equity |  | $ | 824,393 |  |  | $ | 718,073 |
Company's share of accumulated equity |  | $ | 205,579 |  |  | $ | 113,285 |
Basis differential |  |  | 53,559 |  |  |  | 66,031 |
Deferred fees, net of portion related to the Company's interest |  |  | 3,587 |  |  |  | 4,071 |
Amounts receivable/payable by the Company |  |  | 142 |  |  |  | 666 |
Investments in and advances to unconsolidated affiliates, net of Company's share of distributions in excess of income from and investments in unconsolidated affiliates |  |  | 262,867 |  |  |  | 184,053 |
Investments carried at fair value or cost |  |  | 140,727 |  |  |  | 128,334 |
Company's share of distributions in excess of income from and investments in unconsolidated affiliates |  |  | 9,547 |  |  |  | 9,939 |
Investments in and advances to unconsolidated affiliates |  | $ | 413,141 |  |  | $ | 322,326 |
|  | Three Months Ended March 31, |
|  | 2022 |  |  | 2021 |
Combined and Condensed Statements of Operations |  |  |  |  |  |
Total revenues |  | $ | 23,118 |  |  | $ | 18,060 |
Operating and other expenses |  |  | (7,258 | ) |  |  | (6,451 | )
Interest expense |  |  | (4,739 | ) |  |  | (5,061 | )
Depreciation and amortization |  |  | (5,911 | ) |  |  | (9,211 | )
Gain on disposition of properties (a) |  |  | — |  |  |  | 3,206 |
Net income attributable to unconsolidated affiliates |  | $ | 5,210 |  |  | $ | 543 |
Company’s share of equity in net income of unconsolidated affiliates |  | $ | 3,383 |  |  | $ | 2,646 |
Income attributable to unconsolidated affiliates recently sold or consolidated |  |  | — |  |  |  | (328 | )
Basis differential amortization |  |  | (253 | ) |  |  | (436 | )
Company’s equity in earnings of unconsolidated affiliates |  | $ | 3,130 |  |  | $ | 1,882 |
a) Represents the gain on the sale of two land parcels by the Family Center at Riverdale on January 4, 2021.

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- Definition The entire disclosure for the information summarizing investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates. It reflects specified information about ownership, financial results from, and financial position in such entities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 + Details
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