Investment in Unconsolidated Entities

3 Months Ended

Mar. 31, 2021

Investment in Partially Owned Entities [Abstract]

Joint Venture Interests

IAGM Retail Fund I, LLC

As of March 31, 2021 and December 31, 2020, the Company owned a 55% interest in one unconsolidated entity, IAGM Retail Fund I, LLC ("IAGM"), a retail joint venture partnership between the Company and PGGM Private Real Estate Fund ("PGGM"). As of March 31, 2021 and December 31, 2020, the carrying value of the Company's investment in IAGM was $106,566 and $109,051, respectively.

During the three months ended March 31, 2020, the Company purchased Antoine Town Center from IAGM for $22,254, a fair value determined by independent appraisal, which resulted in IAGM recognizing a gain on sale of $1,741. The Company deferred its share of IAGM's gain on sale of $958 and began amortizing the gain over 30 years as an increase to equity in earnings of unconsolidated entities. Subsequent to purchasing Antoine Town Center, the Company completed a sale of an outparcel at this retail property to an unrelated third party which resulted in recognizing $54 of previously deferred gain.

During the three months ended March 31, 2021 and 2020, IAGM prepaid mortgages payable of $23,150 and $14,872, respectively, with cash on hand.

During the three months ended March 31, 2020, IAGM entered into two interest rate swap agreements to achieve fixed interest rates on its senior secured term loan facility previously subject to variability in the London Inter-bank Offered Rate ("LIBOR"). Each of the interest rate swaps have an effective date of April 1, 2020 and a termination date of November 2, 2023. One interest rate swap has a notional amount of $45,000 and achieves a fixed interest rate of 1.979%. The other interest rate swap has a notional amount of $30,000 and achieves a fixed interest rate of 1.956%. The Company recognizes its share of gains or losses resulting from IAGM's interest rate swaps as an adjustment to the Company's investment in IAGM and an increase or decrease in comprehensive income. As of March 31, 2021, the interest rate swaps were recorded as a liability with a fair value of $171 on IAGM's condensed consolidated balance sheet, of which the Company's share was $94.

Condensed Financial Information

The following table presents condensed balance sheet information for IAGM:


	As of
	March 31, 2021		December 31, 2020
Assets:
Net investment properties	$	385,505	$	387,394
Other assets	40,707		72,453
Total assets	426,212		459,847
Liabilities and equity:
Mortgages debt, net	219,389		242,388
Other liabilities	13,051		19,144
Equity	193,772		198,315
Total liabilities and equity	426,212		459,847

Company's share of equity	107,436		109,928
Outside basis difference, net (a)	(870)		(877)
Carrying value of investments in unconsolidated entities	$	106,566	$	109,051

(a)The outside basis difference relates to the unamortized deferred gain on sale of Antoine Town Center.

The following table presents condensed income statement information of IAGM:


	Three months ended March 31,
	2021		2020
Total income	$	11,429	$	12,723
Depreciation and amortization	(3,764)		(4,342)
Property operating	(2,073)		(1,865)
Real estate taxes	(2,372)		(2,426)
Asset management fees	(271)		(285)
Interest expense, net	(1,692)		(2,193)
Other (expense) and income, net	(129)		(90)
Loss on debt extinguishment	(14)		(8)
Gain on sale of real estate	—		1,741

Net income	$	1,114	$	3,255

Company's share of net income	$	612	$	1,744
Outside basis adjustment for investee's sale of real estate, net	8		(955)
Equity in earnings of unconsolidated entities	$	620	$	789

The following table summarizes the scheduled maturities of IAGM's mortgages payable as of March 31, 2021, for the remainder of 2021, each of the next four years and thereafter:


Scheduled maturities by year:	As of March 31, 2021
2021	$	—
2022	—
2023	180,125
2024	—
2025	22,880
Thereafter	17,800
Total	$	220,805

As of March 31, 2021 and December 31, 2020, none of IAGM's mortgages payable are recourse to the Company. It is anticipated that the joint venture will be able to repay, refinance or extend all of its debt on a timely basis.