Investments in and Advances to Joint Ventures (Tables)

6 Months Ended

Jun. 30, 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):


	June 30, 2013			December 31, 2012
Condensed Combined Balance Sheets
Land	$	1,529,795		$	1,569,548
Buildings		4,632,324			4,681,462
Fixtures and tenant improvements		266,917			244,293

		6,429,036			6,495,303
Less: Accumulated depreciation		(881,857	)		(833,816	)

		5,547,179			5,661,487
Land held for development and construction in progress		277,314			348,822

Real estate, net		5,824,493			6,010,309
Cash and restricted cash		368,948			467,200
Receivables, net		101,938			99,098
Other assets		380,154			427,014

	$	6,675,533		$	7,003,621


Mortgage debt	$	4,141,601		$	4,246,407
Notes and accrued interest payable to DDR^(A)		153,042			143,338
Other liabilities		295,990			342,614

		4,590,633			4,732,359
Redeemable preferred equity		167,060			154,556
Accumulated equity		1,917,840			2,116,706

	$	6,675,533		$	7,003,621

Company’s share of Accumulated Equity	$	399,551		$	432,500

(A)

The Company has amounts receivable from several joint ventures aggregating $36.3 million and $34.3 million at June 30, 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 June 30,						Six-Month Periods Ended June 30,
	2013			2012			2013			2012
Condensed Combined Statements of Operations
Revenues from operations	$	184,820		$	163,694		$	371,547		$	322,908


Operating expenses^(A)		65,022			64,433			129,909			115,495
Impairment charges		44,563			—			44,563			840
Depreciation and amortization		59,045			41,863			124,345			81,550
Interest expense		60,059			58,860			122,258			113,978

		228,689			165,156			421,075			311,863

(Loss) income before tax expense and discontinued operations		(43,869	)		(1,462	)		(49,528	)		11,045
Income tax expense (primarily Sonae Sierra Brasil), net		(7,238	)		(6,200	)		(13,853	)		(12,190	)

Loss from continuing operations		(51,107	)		(7,662	)		(63,381	)		(1,145	)
Discontinued operations:
Loss from discontinued operations		(87	)		(8,287	)		(62	)		(10,534	)
(Loss) gain on disposition of real estate, net of tax		(369	)		247			(5,906	)		107

Loss before gain (loss) on disposition of real estate, net		(51,563	)		(15,702	)		(69,349	)		(11,572	)
Gain (loss) on disposition of real estate, net		164			(750	)		643			13,102

Net (loss) income	$	(51,399	)	$	(16,452	)	$	(68,706	)	$	1,530
Non-controlling interests		(6,695	)		(4,600	)		(13,914	)		(13,534	)

Net loss attributable to unconsolidated joint ventures	$	(58,094	)	$	(21,052	)	$	(82,620	)	$	(12,004	)

Company’s share of equity in net (loss) income of joint ventures	$	(1,522	)	$	3,171		$	1,528		$	13,351

Amortization of basis differentials^(B)		331			61			235			(1,871	)

Equity in net (loss) income of joint ventures	$	(1,191	)	$	3,232		$	1,763		$	11,480

(A)	Operating expenses for the three- and six-month periods ended June 30, 2012, include transaction costs associated with the formation of the unconsolidated joint venture BRE DDR Retail Holdings, LLC.

(B)

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 basis and its share of all of the unconsolidated joint ventures’ underlying net assets (in millions):


	June 30, 2013			December 31, 2012
Company’s share of accumulated equity	$	399.6		$	432.5
Redeemable preferred equity and notes receivable from investments^(A)		167.5	^(B)		155.0
Basis differentials		(3.3	)		(5.9	)
Deferred development fees, net of portion related to the Company’s interest		(2.9	)		(2.9	)
Notes and accrued interest payable to DDR		36.3	^(B)		34.3

Investments in and Advances to Joint Ventures	$	597.2		$	613.0

(A)	Primarily relates to $167.1 million and $154.6 million preferred equity investment in BRE DDR Retail Holdings, LLC at June 30, 2013 and December 31, 2012, respectively.

(B)	As discussed below, in conjunction with the Company’s pending acquisition of 30 assets, approximately $146 million is expected to be repaid upon closing.

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 June 30,				Six-Month Periods Ended June 30,
	2013		2012		2013		2012
Management and other fees	$	7.8	$	6.5	$	15.3	$	13.4
Development fees and leasing commissions		2.3		1.9		5.2		3.9
Interest income		4.6		0.5		9.1		0.5