Investments in and Advances to Joint Ventures (Tables)

3 Months Ended

Mar. 31, 2013

Equity Method Investments And Joint Ventures [Abstract]

Condensed Combined Financial Information of Company's Unconsolidated Joint Venture Investments

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.

Condensed Combined Statements of Operations of Unconsolidated Joint Venture Investments


	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

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 Company's Unconsolidated Joint Ventures

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		—