XML 26 R17.htm IDEA: XBRL DOCUMENT
v3.23.2

Assets and Liabilities of Disposal Group Held for Sale | 6 Months Ended
--- | ---
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract] |
Assets and Liabilities of Disposal Group Held for Sale | 9. Assets and Liabilities of Disposal Group Held for Sale In September 2022, the Company announced a repositioning of its business through the opportunistic disposition over time of the Company's joint venture equity investments in multi-family properties and reallocation of its capital away from such assets to its targeted assets. Accordingly, the Company determined that certain joint venture equity investments met the criteria to be classified as held for sale, transferred either the assets and liabilities of the respective Consolidated VIEs or its equity investment in the joint venture entity to assets and liabilities of disposal group held for sale in the accompanying condensed consolidated balance sheets and recognized no loss. During the three months ended June 30, 2023, four of the joint ventures in which the Company held a common equity investment sold their multi-family apartment communities for approximately $187.7 million, subject to certain prorations and adjustments typical in such real estate transactions, and repaid the related mortgages payable in the amount of approximately $150.2 million. The sales generated net gains of approximately $3.1 million and losses on extinguishment of debt of approximately $1.9 million, both of which are primarily included in other income on the accompanying condensed consolidated statements of operations. The sales also generated net income attributable to non-controlling interest of approximately $1.9 million, resulting in net losses attributable to the Company's common shareholders of approximately $0.6 million. The following table presents the carrying values of the major classes of assets and liabilities of disposal group held for sale as of June 30, 2023 and December 31, 2022, respectively (dollar amounts in thousands):
|  | June 30, 2023 |  | December 31, 2022
Cash and cash equivalents (1) |  | $ | 24,097 |  |  | $ | 13,944 |
Equity investments |  | 7,695 |  |  | 9,010 |
Real estate, net (1) |  | 889,242 |  |  | 1,079,942 |
Other assets (1) |  | 44,565 |  |  | 48,888 |
Total assets of disposal group held for sale |  | $ | 965,599 |  |  | $ | 1,151,784 |
Mortgages payable on real estate |  | $ | 734,997 |  |  | $ | 865,414 |
Other liabilities |  | 20,843 |  |  | 18,398 |
Total liabilities of disposal group held for sale (1) |  | $ | 755,840 |  |  | $ | 883,812 |
(1)Certain assets and liabilities of the disposal group held for sale are in Consolidated VIEs because the Company is the primary beneficiary. Also included in the disposal group held for sale are non-controlling interests in Consolidated VIEs in the amount of $20.2 million and $23.9 million as of June 30, 2023 and December 31, 2022, respectively. Real estate, net included in assets of disposal group held for sale is recorded at the lower of the net carrying amount of the assets or the estimated fair value, net of selling costs. Fair value for real estate, net was based upon a discounted cash flow analysis using property financial information and assumptions regarding market rent, revenue and expense growth, capitalization rates and return rates. As of June 30, 2023, the fair value, net of selling costs of multi-family properties owned by four of the joint venture equity investments was less than the properties' net carrying values. The Company recognized net impairments of $16.9 million and $27.1 million in the three and six months ended June 30, 2023, respectively, which are included in other income on the accompanying condensed consolidated statements of operations. See Note 16 for descriptions of valuation methodologies utilized for other classes of assets and liabilities of disposal group held for sale. The following table presents the pretax losses of the disposal group held for sale for the three and six months ended June 30, 2023 and 2022, respectively (dollar amounts in thousands):
|  | For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Pretax loss of disposal group held for sale |  | $ | (20,717) |  |  | $ | (31,324) |  |  | $ | (37,085) |  |  | $ | (47,973) |
Pretax loss of disposal group attributable to non-controlling interest in Consolidated VIEs |  | 742 |  |  | 3,279 |  |  | 1,956 |  |  | 5,064 |
Pretax loss of disposal group attributable to Company's common stockholders |  | $ | (19,975) |  |  | $ | (28,045) |  |  | $ | (35,129) |  |  | $ | (42,909) |

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration