Investment In Cedar/RioCan Joint Venture

12 Months Ended

Dec. 31, 2012

Investment In Cedar/RioCan Joint Venture [Abstract]

Investment In Cedar/RioCan Joint Venture

Note 5. Investment in Cedar/RioCan Joint Venture

On October 10, 2012, the Company concluded definitive agreements with RioCan to exit the 20% Cedar / 80% RioCan joint venture that owned 22 retail properties. Pursuant to the agreements, the Company exchanged its 20% interest in the joint venture for (1) a 100% ownership interest in Franklin Village Plaza, located in Franklin, Massachusetts, at an agreed-upon value of approximately $75.1 million, including the assumption of related in-place mortgage financing of approximately $43.1 million, and (2) approximately $41.6 million in cash, which was initially used to reduce the outstanding balance under the Company’s Credit Facility. The Company continued to manage the properties acquired by RioCan subject to a management agreement which terminated effective January 31, 2013. In connection with the transactions, the Company has recorded a net gain of $30.5 million relating to the exit from the joint venture.

The Company earned fees from the joint venture of approximately $2.8 million, $2.8 million and $3.6 million for 2012, 2011, and 2010, respectively. Such fees are included in other revenues in the accompanying consolidated statements of operations.

In connection with the formation of the joint venture and the agreement to transfer properties which were reclassified as “held for sale”, the Company recorded additional impairment charges of $2.5 million in 2010, after having recorded an initial impairment charge of $23.6 million in 2009. Such charges were based on a comparison of the arms-length negotiated transfer amounts set forth in the contract with the carrying values of the properties transferred. In 2010, the Company incurred fees to its investment advisor as it relates to the Cedar/RioCan joint venture of $2.7 million.

The following summarizes certain financial information related to the Company’s investment in the Cedar/RioCan unconsolidated joint venture:



Balance Sheet		December 31,
		2011
Assets:
Real estate, net		$ 532,071,000
Cash and cash equivalents		12,797,000
Restricted cash		3,689,000
Rent and other receivables		2,419,000
Straight-line rents		2,743,000
Deferred charges, net		12,682,000
Other assets		5,549,000
Total assets		$ 571,950,000

Liabilities and partners' capital:
Mortgage loans payable		$ 317,293,000
Due to the Company		1,203,000
Unamortized intangible lease liabilities		22,182,000
Other liabilities		8,248,000
Total liabilities		348,926,000

Preferred stock		97,000
Partners' capital		222,927,000
Total liabilities and partners' capital		$ 571,950,000

The Company's share of partners' capital		$ 44,743,000

On April 15, 2011, the joint venture acquired Northwoods Crossing, located in Taunton, Massachusetts. The purchase price of the property was approximately $23.5 million, and the joint venture assumed a mortgage in the amount of $14.4 million, which bore interest at 5.2% per annum and was scheduled to mature in February 2016.



Statements of Income	January 1, 2012 to
	October 10, 2012	Years ended December 31,
	(Sale Date)	2011	2010
Revenues	$ 49,341,000	$ 62,500,000	$ 30,194,000
Property operating and other expenses	(4,373,000)	(6,631,000)	(2,636,000)
Management fees	(1,653,000)	(2,006,000)	(973,000)
Real estate taxes	(5,941,000)	(7,214,000)	(3,286,000)
Acquisition transaction costs	(964,000)	(917,000)	(7,119,000)
General and administrative	(174,000)	(308,000)	(622,000)
Depreciation and amortization	(15,769,000)	(20,616,000)	(9,523,000)
Interest and other non-operating expenses, net	(13,027,000)	(18,078,000)	(7,903,000)
Net income (loss)	$ 7,440,000	$ 6,730,000	$ (1,868,000)

The Company's share of net income (loss)	$ 1,481,000	$ 1,346,000	$ (375,000)

- 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.

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