Investments in Unconsolidated Real Estate Joint Ventures | Investments in Unconsolidated Real Estate Joint Ventures The equity method of accounting is used to account for each of the individual joint ventures. We have an ownership interest in the following unconsolidated real estate joint ventures: As of June 30, 2018 Joint Venture Outlet Center Location Ownership % Square Feet (in 000's) Carrying Value of Investment (in millions) Total Joint Venture Debt, Net (in millions) (1) National Harbor National Harbor, MD 50.0 % 341 $ 1.2 $ 86.6 RioCan Canada Various 50.0 % 923 109.3 10.2 Investments included in investments in unconsolidated joint ventures $ 110.5 Columbus (2) Columbus, OH 50.0 % 355 $ (0.3 ) $ 84.6 Charlotte (2) Charlotte, NC 50.0 % 398 (9.8 ) 99.6 Galveston/Houston (2) Texas City, TX 50.0 % 353 (15.5 ) 79.5 Investments included in other liabilities $ (25.6 ) As of December 31, 2017 Joint Venture Outlet Center Location Ownership % Square Feet (in 000's) Carrying Value of Investment (in millions) Total Joint Venture Debt, Net (1) Columbus Columbus, OH 50.0 % 355 $ 1.1 $ 84.4 National Harbor National Harbor, MD 50.0 % 341 2.5 86.4 RioCan Canada Various 50.0 % 923 115.8 11.1 Investments included in investments in unconsolidated joint ventures $ 119.4 Charlotte (2) Charlotte, NC 50.0 % 398 $ (4.1 ) $ 89.8 Galveston/Houston (2) Texas City, TX 50.0 % 353 (13.0 ) 79.4 Investments included in other liabilities $ (17.1 ) (1) Net of debt origination costs and including premiums of $1.4 million as of June 30, 2018 and December 31, 2017. (2) The negative carrying value is due to distributions exceeding contributions and increases or decreases from the equity in earnings of the joint venture. Fees we received for various services provided to our unconsolidated joint ventures were recognized in management, leasing and other services as follows (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Fee: Management and marketing $ 565 $ 570 $ 1,133 $ 1,112 Leasing and other fees 65 39 110 76 Total Fees $ 630 $ 609 $ 1,243 $ 1,188 Our investments in real estate joint ventures are reduced by the percentage of the profits earned for leasing and development services associated with our ownership interest in each joint venture. Our carrying value of investments in unconsolidated joint ventures differs from our share of the assets reported in the "Summary Balance Sheets - Unconsolidated Joint Ventures" shown below due to adjustments to the book basis, including intercompany profits on sales of services that are capitalized by the unconsolidated joint ventures. The differences in basis (totaling $4.1 million and $4.2 million as of June 30, 2018 and December 31, 2017 , respectively) are amortized over the various useful lives of the related assets. Charlotte In June 2018, the Charlotte joint venture closed on a $100.0 million mortgage loan with a fixed interest rate of 4.27% and a maturity date of July 2028. The proceeds from the loan were used to pay off the $90.0 million mortgage loan with an interest rate of LIBOR + 1.45% , which had an original maturity date of November 2018. The joint venture distributed the incremental net loan proceeds of $9.3 million equally to the partners. Condensed combined summary financial information of unconsolidated joint ventures accounted for using the equity method is as follows (in thousands): Condensed Combined Balance Sheets - Unconsolidated Joint Ventures June 30, 2018 December 31, 2017 Assets Land $ 93,222 $ 95,686 Buildings, improvements and fixtures 497,518 505,618 Construction in progress 2,994 3,005 593,734 604,309 Accumulated depreciation (103,662 ) (93,837 ) Total rental property, net 490,072 510,472 Cash and cash equivalents 18,352 25,061 Deferred lease costs and other intangibles, net 10,057 10,985 Prepaids and other assets 16,944 15,073 Total assets $ 535,425 $ 561,591 Liabilities and Owners' Equity Mortgages payable, net $ 360,529 $ 351,259 Accounts payable and other liabilities 12,253 14,680 Total liabilities 372,782 365,939 Owners' equity 162,643 195,652 Total liabilities and owners' equity $ 535,425 $ 561,591 Three months ended Six months ended Condensed Combined Statements of Operations June 30, June 30, - Unconsolidated Joint Ventures 2018 2017 2018 2017 Revenues $ 23,406 $ 23,285 $ 47,403 $ 47,347 Expenses: Property operating 8,958 8,877 18,886 18,255 General and administrative 54 96 253 216 Depreciation and amortization 6,545 6,943 12,907 14,456 Total expenses 15,557 15,916 32,046 32,927 Operating income 7,849 7,369 15,357 14,420 Interest expense (3,388 ) (2,460 ) (6,465 ) (4,720 ) Other non-operating income 55 1 107 3 Net income $ 4,516 $ 4,910 $ 8,999 $ 9,703 The Company and Operating Partnership's share of: Net income $ 2,206 $ 2,374 $ 4,400 $ 4,692 Depreciation and amortization expense (real estate related) $ 3,325 $ 3,550 $ 6,554 $ 7,388 |