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Investment In Cedar/RioCan Joint Venture
 12 Months Ended
Dec. 31, 2013
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 recorded a net gain of $30.5 million relating to the exit from the joint venture in 2012. 

 

The Company earned fees from the joint venture of approximately $0.2 million, $2.8 million and $2.8 million for 2013, 2012,  and 2011, respectively. Such fees are included in other revenues in the accompanying consolidated statements of operations.

 

The following is a summary of the components of income related to the Company’s investment in the Cedar/RioCan unconsolidated joint venture:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statements of Income

 

January 1, 2012 to

 

 

 

 

October 10, 2012

 

Year ended

 

 

(Sale Date)

 

December 31, 2011

Revenues

 

$             49,341,000 

 

$               62,500,000 

Property operating and other expenses

 
(4,373,000)

 
(6,631,000)

Management fees

 
(1,653,000)

 
(2,006,000)

Real estate taxes

 
(5,941,000)

 
(7,214,000)

Acquisition transaction costs

 
(964,000)

 
(917,000)

General and administrative

 
(174,000)

 
(308,000)

Depreciation and amortization

 
(15,769,000)

 
(20,616,000)

Interest and other non-operating expenses, net

 
(13,027,000)

 
(18,078,000)

Net income

 

$               7,440,000 

 

$                 6,730,000 

 

 

 

 

 

The Company's share of net income

 

$               1,481,000 

 

$                 1,346,000