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Unconsolidated Affiliates and Noncontrolling Interests | 6 Months Ended
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Jun. 30, 2018
Equity Method Investments and Joint Ventures [Abstract] |
Unconsolidated Affiliates and Noncontrolling Interests | Unconsolidated Affiliates and Noncontrolling Interests Unconsolidated Affiliates Although the Company had majority ownership of certain joint ventures during 2018 and 2017, it evaluated the investments and concluded that the other partners or owners in these joint ventures had substantive participating rights, such as approvals of:
• | the pro forma for the development and construction of the project and any material deviations or modifications thereto;
• | the site plan and any material deviations or modifications thereto;
• | the conceptual design of the project and the initial plans and specifications for the project and any material deviations or modifications thereto;
• | any acquisition/construction loans or any permanent financings/refinancings;
• | the annual operating budgets and any material deviations or modifications thereto;
• | the initial leasing plan and leasing parameters and any material deviations or modifications thereto; and
• | any material acquisitions or dispositions with respect to the project.
As a result of the joint control over these joint ventures, the Company accounts for these investments using the equity method of accounting. At June 30, 2018, the Company had investments in 18 entities, which are accounted for using the equity method of accounting. The Company's ownership interest in these unconsolidated affiliates ranges from 10.0% to 65.0%. Of these entities, 13 are owned in 50/50 joint ventures. Self Storage at Mid Rivers, LLC In April 2018, the Company entered into a 50/50 joint venture, Self Storage at Mid Rivers, LLC, to develop a self-storage facility adjacent to Mid Rivers Mall. The Company recorded a $387 gain on investment related to land which it contributed to the joint venture. The unconsolidated affiliate is a VIE. See additional information in Variable Interest Entities below. In conjunction with the formation of the joint venture, the unconsolidated affiliate closed on a construction loan. See details below under 2018 Financings. Condensed Combined Financial Statements - Unconsolidated Affiliates Condensed combined financial statement information of the unconsolidated affiliates is as follows:
| June 30, 2018 |  | December 31, 2017
ASSETS |  |  |
Investment in real estate assets | $ | 2,096,677 |  |  | $ | 2,089,262 |
Accumulated depreciation | (650,239 | ) |  | (618,922 | )
| 1,446,438 |  |  | 1,470,340 |
Developments in progress | 67,143 |  |  | 36,765 |
Net investment in real estate assets | 1,513,581 |  |  | 1,507,105 |
Other assets | 195,749 |  |  | 201,114 |
Total assets | $ | 1,709,330 |  |  | $ | 1,708,219 |
| June 30, 2018 |  | December 31, 2017
LIABILITIES |  |  |
Mortgage and other indebtedness, net | $ | 1,312,520 |  |  | $ | 1,248,817 |
Other liabilities | 45,920 |  |  | 41,291 |
Total liabilities | 1,358,440 |  |  | 1,290,108 |
OWNERS' EQUITY |  |  |
The Company | 185,687 |  |  | 216,292 |
Other investors | 165,203 |  |  | 201,819 |
Total owners' equity | 350,890 |  |  | 418,111 |
Total liabilities and owners' equity | $ | 1,709,330 |  |  | $ | 1,708,219 |
| Total for the Three Months Ended June 30,
| 2018 |  | 2017
Total revenues | $ | 55,083 |  |  | $ | 58,156 |
Depreciation and amortization | (19,525 | ) |  | (19,496 | )
Interest income | 351 |  |  | 430 |
Interest expense | (13,019 | ) |  | (13,146 | )
Operating expenses | (16,831 | ) |  | (16,639 | )
Income from continuing operations before gain (loss) on sales of real estate assets | 6,059 |  |  | 9,305 |
Gain (loss) on sales of real estate assets | 1,183 |  |  | (6 | )
Net income (1) | $ | 7,242 |  |  | $ | 9,299 |
(1) | The Company's share of net income is $4,368 and $6,325 for the three months ended June 30, 2018 and 2017, respectively.
| Total for the Six Months Ended June 30,
| 2018 |  | 2017
Total revenues | $ | 112,264 |  |  | $ | 117,855 |
Depreciation and amortization | (39,312 | ) |  | (40,125 | )
Interest income | 704 |  |  | 830 |
Interest expense | (25,477 | ) |  | (25,984 | )
Operating expenses | (36,811 | ) |  | (35,387 | )
Income from continuing operations before gain (loss) on sales of real estate assets | 11,368 |  |  | 17,189 |
Gain (loss) on sales of real estate assets | 1,183 |  |  | (77 | )
Net income (1) | $ | 12,551 |  |  | $ | 17,112 |
(1) | The Company's share of net income is $8,107 and $11,698 for the six months ended June 30, 2018 and 2017, respectively.
Financings - Unconsolidated Affiliates All of the debt on the properties owned by the unconsolidated affiliates is non-recourse, except for debt secured by Ambassador Infrastructure, Hammock Landing, The Pavilion at Port Orange, The Shoppes at Eagle Point and the self-storage developments adjacent to EastGate Mall and Mid Rivers Mall. See Note 11 for a description of guarantees the Operating Partnership has issued related to these unconsolidated affiliates. 2018 Financings The Company's unconsolidated affiliates had the following loan activity in 2018:
Date |  | Property |  | Stated Interest Rate |  | Maturity Date |  | Amount Financed or Extended
April |  | CoolSprings Galleria (1) |  | 4.839% |  | May 2028 |  |  | $ | 155,000 |
April |  | Self-storage development - Mid Rivers Mall (2) |  | LIBOR + 2.75% |  | April 2023 |  |  | 5,987 |
May |  | Hammock Landing - Phase I |  | LIBOR + 2.25% |  | February 2021 | (3) |  | 41,997 |
May |  | Hammock Landing - Phase II |  | LIBOR + 2.25% |  | February 2021 | (3) |  | 16,217 |
May |  | The Pavilion at Port Orange |  | LIBOR + 2.25% |  | February 2021 | (3) |  | 56,738 |
(1) | CBL/T-C, LLC, a 50/50 joint venture, closed on a non-recourse loan. Proceeds from the loan were used to retire a $97,732 loan, which was due to mature in June 2018. See 2018 Loan Repayment below for more information. The Company's share of excess proceeds were used to reduce outstanding balances on its credit facilities.
(2) | Self Storage at Mid Rivers, LLC, a 50/50 joint venture, closed on a construction loan with a total borrowing capacity of up to $5,987 for the development of a climate controlled self-storage facility adjacent to Mid Rivers Mall in St. Peters, MO. The Operating Partnership has guaranteed 100% of the loan. See Note 11 for more information.
(3) | The loans were amended to extend the maturity dates to February 2021. Each loan has two one-year extension options for an outside maturity date of February 2023. The interest rate increased from a variable rate of LIBOR plus 2.0%. The Operating Partnership's guaranty also increased to 50%.
2018 Loan Repayment The loan, secured by the related unconsolidated property, was retired in 2018:
Date |  | Property |  | Interest Rate at Repayment Date |  | Scheduled Maturity Date |  | Principal Balance Repaid
April |  | CoolSprings Galleria (1) |  | 6.98% |  | June 2018 |  | $ | 97,732 |
(1) | The loan secured by the property was retired using a portion of the net proceeds from a $155,000 fixed-rate loan. See 2018 Financings above for more information.
Noncontrolling Interests Noncontrolling interests consist of the following:
|  | As of
|  | June 30, 2018 |  | December 31, 2017
Noncontrolling interests: |  |  |  |
Operating Partnership |  | $ | 74,241 |  |  | $ | 86,773 |
Other consolidated subsidiaries |  | 14,261 |  |  | 9,701 |
|  | $ | 88,502 |  |  | $ | 96,474 |
Common Unit Activity In the second quarter of 2018, the Operating Partnership elected to pay cash of $2,246 to two holders of 526,510 common units of limited partnership interest in the Operating Partnership upon the exercise of their conversion rights. In the first quarter of 2018, the Company issued 915,338 shares of common stock to a holder of 915,338 common units of limited partnership interest in the Operating Partnership in connection with the exercise of the holder's contractual exchange rights. Variable Interest Entities In accordance with the guidance in ASU 2015-02, Amendments to the Consolidation Analysis, and ASU 2016-17, Interests Held Through Related Parties That Are under Common Control, the Operating Partnership and certain of its subsidiaries are deemed to have the characteristics of a VIE primarily because the limited partners of these entities do not collectively possess substantive kick-out or participating rights. The Company consolidates the Operating Partnership, which is a VIE, for which the Company is the primary beneficiary. The Company, through the Operating Partnership, consolidates all VIEs for which it is the primary beneficiary. Generally, a VIE is a legal entity in which the equity investors do not have the characteristics of a controlling financial interest or the equity investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A limited partnership is considered a VIE when the majority of the limited partners unrelated to the general partner possess neither the right to remove the general partner without cause, nor certain rights to participate in the decisions that most significantly affect the financial results of the partnership. In determining whether the Company is the primary beneficiary of a VIE, the Company considers qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of the Company's investment; the obligation or likelihood for the Company or other investors to provide financial support; and the similarity with and significance to the Company's business activities and the business activities of the other investors. Consolidated VIEs As of June 30, 2018, the Company had investments in 19 consolidated VIEs with ownership interests ranging from 50% to 95%. Jarnigan Road II, LLC was wholly-owned by Jarnigan Road LP. During the quarter ended June 30, 2018, its ownership was restructured such that it became a wholly-owned subsidiary of the Management Company and is now a separate reportable VIE. Unconsolidated VIEs The table below lists the Company's unconsolidated VIEs as of June 30, 2018:
|  | Investment in Real Estate Joint Ventures and Partnerships |  | Maximum Risk of Loss
Ambassador Infrastructure, LLC (1) |  | $ | — |  |  | $ | 10,605 |
EastGate Storage, LLC (1) |  | 1,205 |  |  | 6,500 |
G&I VIII CBL Triangle LLC |  | 1,158 |  |  | 1,158 |
Self Storage at Mid Rivers, LLC (1) (2) |  | 985 |  |  | 5,987 |
Shoppes at Eagle Point, LLC (1) |  | 16,679 |  |  | 36,400 |
(1) | The debt is guaranteed by the Operating Partnership at 100%. See Note 11 for more information.
(2) | See above for additional information on this new unconsolidated affiliate.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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