Investments in and Advances to Joint Ventures (Tables)

12 Months Ended

Dec. 31, 2013

Equity Method Investments And Joint Ventures [Abstract]

Summary of Company's Equity Method Joint Ventures Included in Investments in and Advances

The Company’s equity method joint ventures at December 31, 2013, which are included in Investments in and Advances to Joint Ventures in the Company’s consolidated balance sheets, are as follows:


Unconsolidated Real Estate Ventures	Effective Ownership Percentage	Assets Owned
Sonae Sierra Brasil S.A.	33.3%	10 shopping centers and a management company in Brazil
DDR Domestic Retail Fund I	20.0	59 grocery-anchored retail centers in several states
DDR Markaz II LLC	20.0	13 neighborhood grocery-anchored retail centers in several states
DDR — SAU Retail Fund, LLC	20.0	27 grocery-anchored retail centers in several states
DDRTC Core Retail Fund, LLC	15.0	27 shopping centers in several states
Coventry II Joint Ventures	20.0	Four shopping centers in several states
BRE DDR Retail Holdings I	5.0	14 shopping centers in several states
BRE DDR Retail Holdings II	5.0	Seven shopping centers in several states
Other Joint Venture Interests	25.25 – 79.45	13 shopping centers in several states and a management company

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

Condensed combined financial information of the Company’s unconsolidated joint venture investments is summarized as follows (in thousands):


	December 31,
	2013^(A)			2012
Condensed combined balance sheets
Land	$	1,275,232		$	1,569,548
Buildings		3,940,806			4,681,462
Fixtures and tenant improvements		266,851			244,293

		5,482,889			6,495,303
Less: Accumulated depreciation		(839,867	)		(833,816	)

		4,643,022			5,661,487
Land held for development and construction in progress		116,088			348,822

Real estate, net		4,759,110			6,010,309
Cash and restricted cash^(B)		282,866			467,200
Receivables, net		101,003			99,098
Other assets		196,615			427,014

	$	5,339,594		$	7,003,621

Mortgage debt	$	3,282,643		$	4,246,407
Notes and accrued interest payable to DDR^(C)		127,679			143,338
Other liabilities		245,368			342,614

		3,655,690			4,732,359
Redeemable preferred equity		71,771			154,556
Accumulated equity		1,612,133			2,116,706

	$	5,339,594		$	7,003,621

Company’s share of accumulated equity	$	365,297		$	432,500

(A)	The net decrease in the balance sheet at December 31, 2013, is primarily attributable to the Company’s acquisition of 30 assets from BRE DDR Retail Holdings I, described later in this footnote, as well as other joint venture asset sales partially offset by a new joint venture entered into in 2013.

(B)	Includes $191.9 million and $347.9 million at December 31, 2013 and 2012, respectively, held by Sonae Sierra Brazil BV SARL.

(C)

The Company has amounts receivable from several joint ventures aggregating $2.7 million and $34.3 million at December 31, 2013 and 2012, respectively, which are included in Investments in and Advances to Joint Ventures on the 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


	For the Year Ended December 31,
	2013			2012			2011
Condensed combined statements of operations
Revenues from operations	$	692,368		$	666,951		$	620,354

Operating expenses		237,538			230,499			198,988
Impairment charges^(A)		86,346			840			145,507
Depreciation and amortization		222,756			190,514			157,993
Interest expense		224,133			220,612			201,086

		770,773			642,465			703,574

(Loss) income before tax expense and discontinued operations		(78,405	)		24,486			(83,220	)
Income tax expense (primarily Sonae Sierra Brasil), net		(27,553	)		(25,444	)		(38,598	)

Loss from continuing operations		(105,958	)		(958	)		(121,818	)
Discontinued operations:
Loss from discontinued operations^(B)		(14,567	)		(71,787	)		(136,684	)
Gain on debt forgiveness		—			—			2,976
(Loss) gain on disposition of real estate, net of tax^(C)		(19,190	)		11,739			18,705

Loss before gain on disposition of real estate, net		(139,715	)		(61,006	)		(236,821	)
Gain on disposition of real estate, net		794			54,582			1,733

Net loss	$	(138,921	)	$	(6,424	)	$	(235,088	)

Non-controlling interests		(26,005	)		(42,995	)		(16,132	)

Net loss attributable to unconsolidated joint ventures	$	(164,926	)	$	(49,419	)	$	(251,220	)

Company’s share of equity in net income (loss) of joint ventures	$	3,314		$	33,512		$	(12,979	)
Amortization/adjustments of basis differentials^(D)		3,505			1,738			26,713

Equity in net income of joint ventures^(E)	$	6,819		$	35,250		$	13,734

(A)	For the years ended December 31, 2013, 2012 and 2011, the Company’s proportionate share was $10.6 million, $0.4 million and $5.7 million, respectively.

(B)

For the years ended December 31, 2013, 2012 and 2011, impairment charges included in discontinued operations related to asset sales were $6.8 million, $56.3 million and $127.0 million, respectively, of which the Company’s proportionate share was $0.7 million and $7.2 million for the years ended December 31, 2012 and 2011, respectively. For the year ended December 31, 2013, the Company’s proportionate share was not material. The Company’s share of the impairment charges was reduced by the impact of the other than temporary impairment charges recorded on these investments, as appropriate, and as discussed below.

(C)

For the year ended December 31, 2013, the loss primarily was 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.

(D)

The difference between the Company’s share of net income (loss), as reported above, and the amounts included in the 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.

(E)	The Company is not recording income or loss from those investments in which its investment basis is zero as the Company does not have the intent or obligation to fund any additional capital in the joint ventures.

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):


	For the Year Ended December 31,
	2013			2012
Company’s share of accumulated equity	$	365.3		$	432.5
Redeemable preferred equity and other^(A)		72.2			155.0
Basis differentials		10.6			(5.9	)
Deferred development fees, net of portion related to the Company’s interest		(2.8	)		(2.9	)
Notes and accrued interest payable to DDR		2.7			34.3

Investments in and Advances to Joint Ventures	$	448.0		$	613.0

(A)

Primarily relates to $71.8 million and $154.6 million in preferred equity investments in joint ventures with affiliates of The Blackstone Group L.P. (collectively “Blackstone”), as of December 31, 2013 and 2012, respectively. Approximately $110.0 million of the preferred investment issued in 2012 was applied to fund the Company’s acquisition of its partner’s interest in 30 assets in 2013 (Note 3).

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):


	For the Year Ended December 31,
	2013		2012		2011
Management and other fees	$	29.3	$	28.6	$	29.9
Development fees and leasing commissions		10.0		8.7		7.0
Interest income		16.1		9.7		0.1