Investment In Cedar/RioCan Joint Venture

12 Months Ended

Dec. 31, 2014

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 revolving 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 and $2.8 million for 2013 and 2012, 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
		(Sale Date)
Revenues		$ 49,341,000
Property operating and other expenses		(4,373,000)
Management fees		(1,653,000)
Real estate taxes		(5,941,000)
Acquisition transaction costs		(964,000)
General and administrative		(174,000)
Depreciation and amortization		(15,769,000)
Interest and other non-operating expenses, net		(13,027,000)
Net income		$ 7,440,000

The Company's share of net income		$ 1,481,000

- 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.

+ References+ Details