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Notes Receivable
 3 Months Ended
Mar. 31, 2013
Receivables [Abstract]  
Notes Receivable
4. NOTES RECEIVABLE

The Company has notes receivable, including accrued interest, that are collateralized by certain rights in development projects, partnership interests, sponsor guaranties and/or real estate assets, some of which are subordinate to other financings.

Notes receivable consist of the following (in millions):

 

     March 31, 2013      December 31, 2012  

Loans receivable(A)

    $ 49.4       $ 60.4   

Other notes

      3.0         3.1   

Tax Increment Financing Bonds (“TIF Bonds”)(B)

      5.1         5.2   
  

 

 

     

 

 

  
   $ 57.5       $ 68.7   
  

 

 

     

 

 

  

 

(A) Amounts include loans in default and exclude notes receivable and advances from unconsolidated joint ventures at March 31, 2013 and December 31, 2012 (Note 2).
(B) Principal and interest are payable solely from the incremental real estate taxes, if any, generated by the respective shopping center and development project pursuant to the terms of the financing agreement.

As of March 31, 2013 and December 31, 2012, the Company had five and six loans receivable outstanding, respectively. The following table reconciles the loans receivable on real estate for the three-month periods ended March 31, 2013 and 2012 (in thousands):

 

     2013     2012  

Balance at January 1

    $ 60,378     $ 84,541  

Additions:

     

New mortgage loans

      —          75  

Interest

      123       793  

Accretion of discount

      214       202  

Deductions:

     

Payments of principal

      (11,310 )      —     
  

 

 

    

 

 

  

Balance at March 31

    $ 49,405     $ 85,611  
  

 

 

    

 

 

  

In addition, at March 31, 2013, the Company had one loan outstanding aggregating $9.8 million that matured in September 2011 and was more than 90 days past due. The Company is no longer accruing interest income on this note as no payments have been received. A loan loss reserve of $4.3 million was established in 2012 based on the estimated value of the underlying real estate collateral.