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Investments in and Advances to Joint Ventures | 3 Months Ended
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Mar. 31, 2013
Equity Method Investments And Joint Ventures [Abstract] |
Investments in and Advances to Joint Ventures |
2. | INVESTMENTS IN AND ADVANCES TO JOINT VENTURES
At March 31, 2013 and December 31, 2012, the Company had ownership interests in various unconsolidated joint ventures that had an investment in 206 shopping center properties. Condensed combined financial information of the Company’s unconsolidated joint venture investments is as follows (in thousands):
|  | March 31, 2013 |  |  | December 31, 2012 |
Condensed Combined Balance Sheets |  |  |  |  |  |  |  |
Land |  | $ | 1,568,719 |  |  | $ | 1,569,548 |
Buildings |  |  | 4,684,265 |  |  |  | 4,681,462 |
Fixtures and tenant improvements |  |  | 248,372 |  |  |  | 244,293 |
|  |  | 6,501,356 |  |  |  | 6,495,303 |
Less: Accumulated depreciation |  |  | (870,903 | ) |  |  | (833,816 | )
|  |  | 5,630,453 |  |  |  | 5,661,487 |
Land held for development and construction in progress |  |  | 409,242 |  |  |  | 348,822 |
Real estate, net |  |  | 6,039,695 |  |  |  | 6,010,309 |
Cash and restricted cash |  |  | 435,297 |  |  |  | 467,200 |
Receivables, net |  |  | 101,823 |  |  |  | 99,098 |
Other assets |  |  | 402,977 |  |  |  | 427,014 |
|  | $ | 6,979,792 |  |  | $ | 7,003,621 |
Mortgage debt |  | $ | 4,269,039 |  |  | $ | 4,246,407 |
Notes and accrued interest payable to DDR(A) |  |  | 147,885 |  |  |  | 143,338 |
Other liabilities |  |  | 302,202 |  |  |  | 342,614 |
|  |  | 4,719,126 |  |  |  | 4,732,359 |
Redeemable preferred equity |  |  | 155,252 |  |  |  | 154,556 |
Accumulated equity |  |  | 2,105,414 |  |  |  | 2,116,706 |
|  | $ | 6,979,792 |  |  | $ | 7,003,621 |
Company’s share of Accumulated Equity |  | $ | 433,765 |  |  | $ | 432,500 |
(A) | The Company has amounts receivable from several joint ventures aggregating $35.1 million and $34.3 million at March 31, 2013 and December 31, 2012, respectively, which are included in Investments in and Advances to Joint Ventures on the condensed consolidated balance sheets. The remaining amounts were fully reserved by the Company in prior years.
|  | Three-Month Periods Ended March 31, |
|  | 2013 |  |  | 2012 |
Condensed Combined Statements of Operations |  |  |  |  |  |  |  |
Revenues from operations |  | $ | 186,911 |  |  | $ | 159,106 |
Operating expenses |  |  | 65,026 |  |  |  | 52,082 |
Depreciation and amortization |  |  | 65,361 |  |  |  | 39,786 |
Interest expense |  |  | 62,119 |  |  |  | 55,094 |
|  |  | 192,506 |  |  |  | 146,962 |
(Loss) income before tax expense and discontinued operations |  |  | (5,595 | ) |  |  | 12,144 |
Income tax expense (primarily Sonae Sierra Brasil), net |  |  | (6,615 | ) |  |  | (5,972 | )
(Loss) income from continuing operations |  |  | (12,210 | ) |  |  | 6,172 |
Discontinued operations: |  |  |  |  |  |  |  |
Loss from discontinued operations |  |  | (39 | ) |  |  | (1,902 | )
Loss on disposition of real estate, net of tax |  |  | (5,537 | ) |  |  | (139 | )
(Loss) income before gain on disposition of real estate, net |  |  | (17,786 | ) |  |  | 4,131 |
Gain on disposition of real estate, net |  |  | 479 |  |  |  | 13,852 |
Net (loss) income |  | $ | (17,307 | ) |  | $ | 17,983 |
Non-controlling interests |  |  | (7,219 | ) |  |  | (8,934 | )
Net (loss) income attributable to unconsolidated joint ventures |  | $ | (24,526 | ) |  | $ | 9,049 |
Company’s share of equity in net income of joint ventures |  | $ | 3,049 |  |  | $ | 10,180 |
Amortization of basis differentials(A) |  |  | (95 | ) |  |  | (1,932 | )
Equity in net income of joint ventures |  | $ | 2,954 |  |  | $ | 8,248 |
(A) | The difference between the Company’s share of net (loss) income, as reported above, and the amounts included in the condensed consolidated statements of operations is attributable to the amortization of basis differentials, deferred gains and differences in gain (loss) on sale of certain assets due to the basis differentials and other than temporary impairment charges. The Company is not recording income or loss from those investments in which its investment basis is zero and the Company does not have the obligation or intent to fund any additional capital.
Investments in and Advances to Joint Ventures include the following items, which represent the difference between the Company’s investment and its share of all of the unconsolidated joint ventures’ underlying net assets (in millions):
|  | March 31, 2013 |  |  | December 31, 2012 |
Company’s share of accumulated equity |  | $ | 433.8 |  |  | $ | 432.5 |
Redeemable preferred equity and notes receivable from investments(A) |  |  | 155.7 |  |  |  | 155.0 |
Basis differentials |  |  | (4.6 | ) |  |  | (5.9 | )
Deferred development fees, net of portion related to the Company’s interest |  |  | (3.0 | ) |  |  | (2.9 | )
Notes and accrued interest payable to DDR |  |  | 35.1 |  |  |  | 34.3 |
Investments in and Advances to Joint Ventures |  | $ | 617.0 |  |  | $ | 613.0 |
(A) | Primarily relates to a $155.3 million and $154.6 million of preferred equity investment in BRE DDR Retail Holdings, LLC at March 31, 2013 and December 31, 2012, respectively.
Service fees and income earned by the Company through management, financing, leasing and development activities performed related to all of the Company’s unconsolidated joint ventures are as follows (in millions):
|  | Three-Month Periods Ended March 31, |
|  | 2013 |  |  | 2012 |
Management and other fees |  | $ | 7.4 |  |  | $ | 6.8 |
Development fees and leasing commissions |  |  | 2.9 |  |  |  | 2.0 |
Interest income |  |  | 4.5 |  |  |  | — |

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32787-111569 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32847-111569 + Details
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