Investment in Unconsolidated Real Estate Entities

6 Months Ended

Jun. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Real Estate Entities

The following table summarizes the Company’s investments in unconsolidated joint ventures:

Property

Property Type

Submarket

Ownership Interest

Functional Currency

Sunset Waltham Cross Studios

Development

Broxbourne, United Kingdom

35%

Pound sterling

(1)

Sunset Glenoaks Studios

Development

Los Angeles

50%

U.S. dollar

(2)

Bentall Centre

Operating Property

Downtown Vancouver

20%

Canadian dollar

(2)(4)

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1.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.

2.The Company serves as the operating member of this joint venture.

3.The Company has provided various guarantees for this joint venture’s construction loan, including a completion guarantee, equity guarantee and recourse carve-out guarantee.

4.The Company has guaranteed $102.7 million of this joint venture’s debt.

The Company’s maximum exposure related to its unconsolidated joint ventures is limited to its investment. The Company’s investments in foreign real estate entities are subject to foreign currency fluctuation risk. Such investments are translated into U.S. dollars at the exchange rate in effect as of the financial statement date. The Company’s share of the income (loss) from 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 unconsolidated joint ventures in the total of $0.3 million and $0.1 million as of June 30, 2022 and December 31, 2021, respectively.

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


	June 30, 2022		December 31, 2021
ASSETS
Investment in real estate, net	$	1,054,064	$	1,048,593
Other assets	67,985		57,232
TOTAL ASSETS	$	1,122,049	$	1,105,825

LIABILITIES
Secured debt, net	$	524,041	$	516,153
Other liabilities	45,554		40,307
TOTAL LIABILITIES	569,595		556,460

Company’s capital(1)	153,358		148,914
Partner’s capital	399,096		400,451
TOTAL CAPITAL	552,454		549,365

TOTAL LIABILITIES AND CAPITAL	$	1,122,049	$	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 June 30,				Six Months Ended June 30,
	2022		2021		2021		2020
TOTAL REVENUES	$	26,915	$	20,041	$	46,447	$	39,427

TOTAL EXPENSES	17,873		17,728		35,651		33,972

NET INCOME	$	9,042	$	2,313	$	10,796	$	5,455