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Investments in and Advances to Joint Ventures (Tables) | 9 Months Ended
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Sep. 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):
|  | September 30, 2013 |  |  | December 31, 2012 |
Condensed Combined Balance Sheets |  |  |  |  |  |  |  |
Land |  | $ | 1,552,832 |  |  | $ | 1,569,548 |
Buildings |  |  | 4,653,035 |  |  |  | 4,681,462 |
Fixtures and tenant improvements |  |  | 284,451 |  |  |  | 244,293 |
|  |  | 6,490,318 |  |  |  | 6,495,303 |
Less: Accumulated depreciation |  |  | (873,212 | ) |  |  | (833,816 | )
|  |  | 5,617,106 |  |  |  | 5,661,487 |
Land held for development and construction in progress |  |  | 283,241 |  |  |  | 348,822 |
Real estate, net |  |  | 5,900,347 |  |  |  | 6,010,309 |
Cash and restricted cash(A) |  |  | 355,283 |  |  |  | 467,200 |
Receivables, net |  |  | 104,422 |  |  |  | 99,098 |
Other assets |  |  | 410,985 |  |  |  | 427,014 |
|  | $ | 6,771,037 |  |  | $ | 7,003,621 |
Mortgage debt |  | $ | 4,210,034 |  |  | $ | 4,246,407 |
Notes and accrued interest payable to DDR(B) |  |  | 156,743 |  |  |  | 143,338 |
Other liabilities |  |  | 293,711 |  |  |  | 342,614 |
|  |  | 4,660,488 |  |  |  | 4,732,359 |
Redeemable preferred equity |  |  | 198,521 |  |  |  | 154,556 |
Accumulated equity |  |  | 1,912,028 |  |  |  | 2,116,706 |
|  | $ | 6,771,037 |  |  | $ | 7,003,621 |
Company’s share of Accumulated Equity |  | $ | 391,417 |  |  | $ | 432,500 |
(A) | Includes $230.8 million and $347.9 million at September 30, 2013 and December 31, 2012, respectively, from Sonae Sierra Brasil.
(B) | The Company has net amounts receivable from several joint ventures aggregating $35.9 million and $34.3 million at September 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 September 30, |  |  | Nine-Month Periods Ended September 30, |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
Condensed Combined Statements of Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from operations |  | $ | 181,671 |  |  | $ | 183,187 |  |  | $ | 545,603 |  |  | $ | 498,018 |
Operating expenses(A) |  |  | 65,435 |  |  |  | 62,191 |  |  |  | 191,389 |  |  |  | 174,252 |
Impairment charges |  |  | 21,875 |  |  |  | — |  |  |  | 66,438 |  |  |  | 840 |
Depreciation and amortization |  |  | 58,080 |  |  |  | 64,491 |  |  |  | 179,027 |  |  |  | 142,361 |
Interest expense |  |  | 58,433 |  |  |  | 58,876 |  |  |  | 175,840 |  |  |  | 167,740 |
|  |  | 203,823 |  |  |  | 185,558 |  |  |  | 612,694 |  |  |  | 485,193 |
(Loss) income before tax expense and discontinued operations |  |  | (22,152 | ) |  |  | (2,371 | ) |  |  | (67,091 | ) |  |  | 12,825 |
Income tax expense (primarily Sonae Sierra Brasil), net |  |  | (6,446 | ) |  |  | (6,591 | ) |  |  | (20,299 | ) |  |  | (18,781 | )
Loss from continuing operations |  |  | (28,598 | ) |  |  | (8,962 | ) |  |  | (87,390 | ) |  |  | (5,956 | )
Discontinued operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss from discontinued operations |  |  | (2,403 | ) |  |  | (42,976 | ) |  |  | (7,054 | ) |  |  | (57,661 | )
(Loss) gain on disposition of real estate, net of tax(B) |  |  | (21,228 | ) |  |  | 1,183 |  |  |  | (27,133 | ) |  |  | 1,290 |
Loss before gain on disposition of real estate, net |  |  | (52,229 | ) |  |  | (50,755 | ) |  |  | (121,577 | ) |  |  | (62,327 | )
Gain on disposition of real estate, net |  |  | 151 |  |  |  | 1,128 |  |  |  | 794 |  |  |  | 14,230 |
Net loss |  | $ | (52,078 | ) |  | $ | (49,627 | ) |  | $ | (120,783 | ) |  | $ | (48,097 | )
Non-controlling interests |  |  | (5,800 | ) |  |  | (6,155 | ) |  |  | (19,715 | ) |  |  | (19,689 | )
Net loss attributable to unconsolidated joint ventures |  | $ | (57,878 | ) |  | $ | (55,782 | ) |  | $ | (140,498 | ) |  | $ | (67,786 | )
Company’s share of equity in net income (loss) of joint ventures(C) |  | $ | 2,800 |  |  | $ | (1,613 | ) |  | $ | 4,328 |  |  | $ | 11,739 |
Amortization of basis differentials(D) |  |  | 980 |  |  |  | 7,099 |  |  |  | 1,215 |  |  |  | 5,227 |
Equity in net income of joint ventures |  | $ | 3,780 |  |  | $ | 5,486 |  |  | $ | 5,543 |  |  | $ | 16,966 |
(A) | Operating expenses for the nine-month period ended September 30, 2012, include transaction costs associated with the formation of the unconsolidated joint venture BRE DDR Retail Holdings I.
(B) | Primarily attributable to an investment in the Coventry II Fund in which the Company had a 20% interest. The joint venture recorded a loss of $32.6 million on the transfer of its ownership of one of its properties to the lender. The Company’s share of the loss is zero as the Company had previously written off its investment in this operating property.
(C) | 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.
(D) | The difference between the Company’s share of net loss, 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.
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):
|  | September 30, 2013 |  |  | December 31, 2012 |
Company’s share of accumulated equity |  | $ | 391.4 |  |  | $ | 432.5 |
Redeemable preferred equity and other(A) |  |  | 199.0 | (B) |  |  | 155.0 |
Basis differentials |  |  | 8.6 |  |  |  | (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 |  |  | 35.9 | (B) |  |  | 34.3 |
Investments in and Advances to Joint Ventures |  | $ | 632.0 |  |  | $ | 613.0 |
(A) | Primarily relates to $198.5 million and $154.6 million of preferred equity investments through investments with affiliates of Blackstone Real Estate Partners VII L.P. (“Blackstone”) at September 30, 2013 and December 31, 2012, respectively.
(B) | In conjunction with the Company’s acquisition of its joint venture partner’s interest in 30 assets in October 2013, $148.8 million was applied to fund the acquisition cost of the assets (Note 17).
Service Fees and Income Earned from 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 September 30, |  |  | Nine-Month Periods Ended September 30, |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
Management and other fees |  | $ | 7.4 |  |  | $ | 7.6 |  |  | $ | 22.6 |  |  | $ | 20.9 |
Development fees and leasing commissions |  |  | 2.7 |  |  |  | 2.3 |  |  |  | 7.9 |  |  |  | 6.2 |
Interest income |  |  | 5.3 |  |  |  | 4.7 |  |  |  | 14.4 |  |  |  | 5.1 |

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