Investment in Unconsolidated Real Estate Entities

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Real Estate Entities

On July 29, 2021, the Company purchased 35% of the ownership interests in the joint venture that owns the Sunset Waltham Cross Studios development. The Company also owns 35% of the ownership interests 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.

On December 24, 2020, the Company purchased 50% of the ownership interests 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.

On June 5, 2019, the Company purchased, through a joint venture with Blackstone 1 LP, the 20% ownership interest in the Bentall Centre office property and retail complex in Vancouver, Canada. The Company serves as the operating partner. Bentall Centre’s functional currency is the local currency, or Canadian dollars. The maximum exposure related to this unconsolidated joint venture is limited to the Company’s investment and $105.2 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 Company held ownership interests in other immaterial joint ventures in the total of $0.4 million and $0.1 million as of March 31, 2022 and December 31, 2021, respectively.

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


	March 31, 2022		December 31, 2021
ASSETS
Investment in real estate, net	$	1,068,627	$	1,048,593
Other assets	62,929		57,232
TOTAL ASSETS	$	1,131,556	$	1,105,825

LIABILITIES
Secured debt, net	$	524,843	$	516,153
Other liabilities	49,158		40,307
TOTAL LIABILITIES	574,001		556,460

Company’s capital(1)	153,490		148,914
Partner’s capital	404,065		400,451
TOTAL CAPITAL	557,555		549,365

TOTAL LIABILITIES AND CAPITAL	$	1,131,556	$	1,105,825

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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 the income from unconsolidated real estate entities line item 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 March 31,
	2022		2021
TOTAL REVENUES	$	19,532	$	19,386

TOTAL EXPENSES	17,778		16,244

NET INCOME	$	1,754	$	3,142