Investment in Unconsolidated Real Estate Entities

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Real Estate Entities

As of July 29, 2021, the Company owns 35% of the ownership interest in the joint venture that owns the Sunset Waltham Cross Studios development. The Company also owns 35% of the ownership interest in the joint venture entities formed to serve as the general partner and management services company for the property-owning joint venture entity. The joint venture entities’ functional currency is the local currency, or the pound sterling. The maximum exposure related to this unconsolidated joint venture is limited to the Company’s investment.

As of December 24, 2020, the Company owns 50% of the ownership interest in the joint venture that owns the Sunset Glenoaks Studios development in Los Angeles, California. The Company serves as the operating member. The maximum exposure related to this unconsolidated joint venture is limited to the Company’s investment.

The Company owns 20% of the ownership interest in the joint venture that owns Bentall Centre office property and retail complex in Vancouver, Canada (“Bentall Centre”). The Company serves as the operating partner. The joint venture’s functional currency is the local currency, or the Canadian dollar. The maximum exposure related to this unconsolidated joint venture is limited to the Company’s investment and $102.7 million of debt which the Company has guaranteed.

The Company has exposure to risks related to foreign currency fluctuations. Our investments in foreign unconsolidated real estate entities are translated into U.S. dollars at the exchange rate in effect as of the financial statement date. Our share of the income (loss) from our foreign unconsolidated real estate entities is translated using the monthly-average exchange rate for the periods presented. Gains or losses resulting from the translation are classified in accumulated other comprehensive loss as a separate component of total equity and are excluded from net income.

The table below presents the combined and condensed balance sheets for the Company’s unconsolidated joint ventures as of:


	September 30, 2021		December 31, 2020
ASSETS
Investment in real estate, net	$	1,035,033	$	855,639
Other assets	66,085		51,118
TOTAL ASSETS	$	1,101,118	$	906,757

LIABILITIES
Secured debt, net	$	510,355	$	495,771
Other liabilities	41,397		52,828
TOTAL LIABILITIES	551,752		548,599

Company’s capital(1)	148,742		80,778
Partners’ capital	400,624		277,380
TOTAL CAPITAL	549,366		358,158

TOTAL LIABILITIES AND CAPITAL	$	1,101,118	$	906,757

__________________

1.To the extent the Company’s cost basis is different from the basis reflected at the joint venture level, the basis is amortized over the life of the related asset and is included in income (loss) from unconsolidated real estate entities on the Consolidated Statements of Operations.

The table below presents the combined and condensed statements of operations for the Company’s unconsolidated joint ventures:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
TOTAL REVENUES	$	20,694	$	25,551	$	60,121	$	77,229

TOTAL EXPENSES	17,893		26,081		51,865		76,892

NET INCOME (LOSS)	$	2,801	$	(530)	$	8,256	$	337