Investments in and Advances to Joint Ventures (Tables)

9 Months Ended

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