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Investment in Unconsolidated Entities | 3 Months Ended
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Mar. 31, 2023
Equity Method Investments and Joint Ventures [Abstract] |
Investment in Unconsolidated Entities | Investment in Unconsolidated Entities Joint Venture Interest in IAGM As of March 31, 2023 and December 31, 2022, the Company owned a 55% interest in one unconsolidated entity, IAGM Retail Fund I, LLC ("IAGM"), a joint venture partnership between the Company and PGGM Private Real Estate Fund. IAGM was formed on April 17, 2013 for the purpose of acquiring, owning, managing, and disposing of retail properties and sharing in the profits and losses from those retail properties and their activities. On January 18, 2023, the Company acquired the four remaining retail properties from IAGM for an aggregate purchase price of $222.3 million by acquiring 100% of the membership interests in each of IAGM's wholly owned subsidiaries. The Company assumed aggregate mortgage debt of $92.5 million and funded the remaining balance with its available liquidity. IAGM recognized a gain on sale of $45.2 million, of which the Company's share was approximately $24.9 million. Subsequent to the transaction, IAGM proportionately distributed substantially all net proceeds from the sale, of which the Company's share was approximately $71.4 million. In connection with the foregoing, IAGM adopted a liquidation plan on January 11, 2023. As of March 31, 2023, net assets of IAGM were $28.6 million, inclusive of cash and cash equivalents of $30.7 million. As of March 31, 2023, the Company's aggregate deferred gains related to its previously owned equity interest in real estate acquisitions from IAGM of $39.9 million are reflected in the basis of the respective acquired assets. Previously, deferred gains were reflected as a reduction of the Company's investment in IAGM and amortized to equity in earnings of unconsolidated entities. On January 18, 2023, the Company also acquired IAGM's two interest rate swap agreements which achieve fixed interest rates on an aggregate notional amount of $75.0 million of the assumed pooled mortgage priced in a Secured Overnight Financing Rate ("SOFR"), each of which reprice monthly ("1-Month Term SOFR"). IAGM recognized a gain on sale of $2.6 million representing the fair value of the derivatives, of which the Company's share was approximately $1.4 million. The Company deferred its share of IAGM's gain on sale of derivatives, initially reflecting it within accumulated comprehensive income and amortizing it to interest expense, net, through the instruments' maturity date. The following table reflects the real property disposed by IAGM since January 1, 2022.
Date |  | Property |  | Square Feet |  | Gross Disposition Price |  | IAGM's Gain (Loss) on Sale |  | The Company's Gain Deferral
March 3, 2022 |  | Price Plaza (a) |  | 206 |  | $ | 39,100 |  |  | $ | 3,751 |  |  | $ | — |
April 21, 2022 |  | The Highlands of Flower Mound (b) |  | 175 |  | 38,000 |  |  | 1,244 |  |  | 684 |
December 16, 2022 |  | Stone Ridge Market (b) |  | 219 |  | 58,100 |  |  | 12,287 |  |  | 6,758 |
December 22, 2022 |  | Stables Town Center (c) |  | 43 |  | 7,800 |  |  | (244) |  |  | — |
January 18, 2023 |  | Bay Colony (b) |  | 416 |  | 79,100 |  |  | 22,327 |  |  | 12,280 |
January 18, 2023 |  | Blackhawk Town Center (b) |  | 127 |  | 26,300 |  |  | 12,632 |  |  | 6,948 |
January 18, 2023 |  | Cyfair Town Center (b) |  | 433 |  | 79,200 |  |  | 4,713 |  |  | 2,592 |
January 18, 2023 |  | Stables Town Center (b) |  | 148 |  | 37,000 |  |  | 5,536 |  |  | 3,045 |
(a)The buyer assumed a $17,800 mortgage payable secured by the property. (b)The Company purchased these properties at a purchase price determined by a third party real estate valuation specialist. (c)IAGM disposed of 43 square feet out of a total 191 square feet through a partial sale of the property. Condensed Financial Information The following table presents condensed balance sheet information for IAGM:
| As of
| March 31, 2023 |  | December 31, 2022
Assets: |  |  |
Net investment properties | $ | — |  |  | $ | 161,312 |
Other assets | 32,690 |  |  | 65,565 |
Total assets | $ | 32,690 |  |  | $ | 226,877 |
Liabilities and equity: |  |  |
Mortgages debt, net | $ | — |  |  | $ | 92,186 |
Other liabilities | 4,053 |  |  | 7,392 |
Equity | 28,637 |  |  | 127,299 |
Total liabilities and equity | $ | 32,690 |  |  | $ | 226,877 |
Company's share of equity | $ | 15,706 |  |  | $ | 70,869 |
Outside basis differences, net (a) | — |  |  | (14,738) |
Carrying value of investments in unconsolidated entities | $ | 15,706 |  |  | $ | 56,131 |
(a)The outside basis differences reflect unamortized deferred gains on historical property sales from IAGM to the Company. The following table presents condensed income statement information of IAGM:
|  |  | Three months ended March 31,
|  |  |  |  | 2023 |  | 2022
Total income |  |  |  |  | $ | 952 |  |  | $ | 8,379 |
Depreciation and amortization |  |  |  |  | (622) |  |  | (2,905) |
Property operating |  |  |  |  | (232) |  |  | (1,330) |
Real estate taxes |  |  |  |  | (127) |  |  | (1,411) |
Asset management fees |  |  |  |  | (32) |  |  | (251) |
Interest expense, net |  |  |  |  | (143) |  |  | (1,159) |
Other income and expense, net |  |  |  |  | 199 |  |  | (142) |
Gain (loss) on debt extinguishment |  |  |  |  | 444 |  |  | (111) |
Gain on sale of real estate |  |  |  |  | 45,208 |  |  | 3,751 |
Gain on sale of derivatives |  |  |  |  | 2,556 |  |  | — |
Net income |  |  |  |  | $ | 48,203 |  |  | $ | 4,821 |
Company's share of net income |  |  |  |  | $ | 26,512 |  |  | $ | 2,652 |
Outside basis adjustments for IAGM's sales to the Company |  |  |  |  | (27,175) |  |  | 64 |
Equity in (losses) earnings of unconsolidated entities |  |  |  |  | $ | (663) |  |  | $ | 2,716 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI https://asc.fasb.org/topic&trid=2196965 + Details
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