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Investments in and Advances to Joint Ventures | 6 Months Ended
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Jun. 30, 2015
Equity Method Investments And Joint Ventures [Abstract] |
Investments in and Advances to Joint Ventures |
2. | Investments in and Advances to Joint Ventures
At June 30, 2015 and December 31, 2014, the Company had ownership interests in various unconsolidated joint ventures that had an investment in 184 and 188 shopping center properties, respectively. Condensed combined financial information of the Company’s unconsolidated joint venture investments is as follows (in thousands):
| June 30, 2015 |  |  | December 31, 2014 |
Condensed Combined Balance Sheets |  |  |  |  |  |  |
Land | $ | 1,346,862 |  |  | $ | 1,439,849 |
Buildings |  | 3,566,004 |  |  |  | 3,854,585 |
Fixtures and tenant improvements |  | 184,661 |  |  |  | 200,696 |
|  | 5,097,527 |  |  |  | 5,495,130 |
Less: Accumulated depreciation |  | (770,122 | ) |  |  | (773,256 | )
|  | 4,327,405 |  |  |  | 4,721,874 |
Land held for development and construction in progress |  | 54,209 |  |  |  | 55,698 |
Real estate, net |  | 4,381,614 |  |  |  | 4,777,572 |
Cash and restricted cash |  | 80,234 |  |  |  | 100,812 |
Receivables, net |  | 48,814 |  |  |  | 80,508 |
Other assets |  | 346,595 |  |  |  | 394,751 |
| $ | 4,857,257 |  |  | $ | 5,353,643 |
Mortgage debt | $ | 3,247,337 |  |  | $ | 3,552,764 |
Notes and accrued interest payable to the Company |  | 3,031 |  |  |  | 144,831 |
Other liabilities |  | 205,924 |  |  |  | 276,998 |
|  | 3,456,292 |  |  |  | 3,974,593 |
Redeemable preferred equity |  | 309,150 |  |  |  | 305,310 |
Accumulated equity |  | 1,091,815 |  |  |  | 1,073,740 |
| $ | 4,857,257 |  |  | $ | 5,353,643 |
Company's share of accumulated equity | $ | 132,034 |  |  | $ | 122,937 |
Redeemable preferred equity |  | 309,150 |  |  |  | 305,310 |
Basis differentials |  | (43,015 | ) |  |  | (12,954 | )
Deferred development fees, net of portion related to the Company's interest |  | (2,438 | ) |  |  | (2,562 | )
Amounts payable to the Company |  | 3,487 |  |  |  | 2,117 |
Investments in and Advances to Joint Ventures | $ | 399,218 |  |  | $ | 414,848 |
| Three Months |  |  | Six Months |
| Ended June 30, |  |  | Ended June 30, |
| 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Condensed Combined Statements of Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from operations | $ | 133,066 |  |  | $ | 112,141 |  |  | $ | 270,666 |  |  | $ | 248,641 |
Expenses from operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating expenses |  | 48,414 |  |  |  | 39,195 |  |  |  | 99,396 |  |  |  | 87,002 |
Impairment charges |  | — |  |  |  | 600 |  |  |  | 448 |  |  |  | 600 |
Depreciation and amortization |  | 51,482 |  |  |  | 34,517 |  |  |  | 108,219 |  |  |  | 75,730 |
Interest expense |  | 33,593 |  |  |  | 41,787 |  |  |  | 74,496 |  |  |  | 91,844 |
Other (income) expense, net |  | 217 |  |  |  | (252 | ) |  |  | 584 |  |  |  | 2,790 |
|  | 133,706 |  |  |  | 115,847 |  |  |  | 283,143 |  |  |  | 257,966 |
Loss before tax expense and discontinued operations |  | (640 | ) |  |  | (3,706 | ) |  |  | (12,477 | ) |  |  | (9,325 | )
Income tax expense (primarily Sonae Sierra Brasil), net |  | — |  |  |  | (2,425 | ) |  |  | — |  |  |  | (6,565 | )
Loss from continuing operations |  | (640 | ) |  |  | (6,131 | ) |  |  | (12,477 | ) |  |  | (15,890 | )
Discontinued operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss from discontinued operations |  | — |  |  |  | (1,695 | ) |  |  | — |  |  |  | (4,187 | )
Gain on disposition of real estate, net of tax |  | — |  |  |  | 2,038 |  |  |  | — |  |  |  | 23,511 |
(Loss) income before gain on disposition of real estate, net |  | (640 | ) |  |  | (5,788 | ) |  |  | (12,477 | ) |  |  | 3,434 |
Loss on disposition of real estate, net |  | (1,358 | ) |  |  | — |  |  |  | (1,571 | ) |  |  | — |
Net (loss) income | $ | (1,998 | ) |  | $ | (5,788 | ) |  | $ | (14,048 | ) |  | $ | 3,434 |
Income attributable to non-controlling interests |  | — |  |  |  | (535 | ) |  |  | — |  |  |  | (2,023 | )
Net (loss) income attributable to unconsolidated joint ventures | $ | (1,998 | ) |  | $ | (6,323 | ) |  | $ | (14,048 | ) |  | $ | 1,411 |
Company's share of equity in net income of joint ventures(A) | $ | 1,317 |  |  | $ | 1,436 |  |  | $ | 1,070 |  |  | $ | 6,167 |
Basis differential adjustments(B) |  | 325 |  |  |  | (305 | ) |  |  | 633 |  |  |  | 454 |
Equity in net income of joint ventures(A) | $ | 1,642 |  |  | $ | 1,131 |  |  | $ | 1,703 |  |  | $ | 6,621 |
(A) | The Company did not record income or loss from those investments in which its investment basis was zero. As of March 13, 2015, the Company no longer had an interest in these assets.
(B) | The difference between the Company’s share of net income, as reported above, and the amounts included in the consolidated statements of operations is attributable to the amortization of basis differentials, the recognition of deferred gains and differences in gain (loss) on sale of certain assets recognized due to the basis differentials and other than temporary impairment charges.
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 Months |  |  | Six Months |
| Ended June 30, |  |  | Ended June 30, |
| 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Management and other fees | $ | 6.5 |  |  | $ | 6.2 |  |  | $ | 12.8 |  |  | $ | 12.3 |
Development fees and leasing commissions |  | 1.6 |  |  |  | 1.5 |  |  |  | 3.2 |  |  |  | 3.5 |
Interest income |  | 6.4 |  |  |  | 1.7 |  |  |  | 12.7 |  |  |  | 3.4 |
The Company’s joint venture agreements generally include provisions whereby each partner has the right to trigger a purchase or sale of its interest in the joint venture or to initiate a purchase or sale of the properties after a certain number of years or if either party is in default of the joint venture agreements. The Company is not obligated to purchase the interests of its outside joint venture partners under these provisions. Coventry II Fund Coventry Real Estate Advisors L.L.C. (“CREA”) formed Coventry Real Estate Fund II, L.L.C. and Coventry Fund II Parallel Fund, L.L.C. (collectively, the “Coventry II Fund”). The Coventry II Fund was formed with several institutional investors and CREA as the investment manager. The Company and the Coventry II Fund entered into various joint ventures to invest in a variety of retail properties that presented opportunities for value creation. In March 2015, the Company, CREA and the Coventry II Fund finalized a settlement agreement in which the Company acquired Coventry II Fund’s 80% interest in Buena Park Place in Orange County, California (Note 3) and the Company transferred to Coventry II Fund its 20% ownership interest in the 21 remaining assets of the Coventry II Fund investments. The Company accounted for this transaction as a step acquisition and, as a result, recorded a Gain on Change in Control of $14.3 million related to the difference between the carrying value of its equity investment and the fair value of the asset acquired. Management Company Investment In June 2015, the Company sold its 50% membership interest in a property management company to its joint venture partner and recorded a Loss on Sale and Change in Control of $6.5 million.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32847-111569 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32787-111569 + Details
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