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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to                  

Commission file number 1-11690

 

SITE Centers Corp.

(Exact name of registrant as specified in its charter)

 

 

Ohio

 

34-1723097

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

   3300 Enterprise Parkway

Beachwood, OH

 

44122

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (216) 755-5500

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Shares, Par Value $0.10 Per Share

 

SITC

 

New York Stock Exchange

 

 

 

 

 

Depositary Shares, each representing 1/20 of a share of 6.375% Class A Cumulative Redeemable Preferred Shares without Par Value

 

SITC PRA

 

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

     

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

  

Smaller reporting company

 

 

 

 

 

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of April 19, 2021, the registrant had 211,031,152 shares of common stock, $0.10 par value per share, outstanding.

 

 

 


 

SITE Centers Corp.

QUARTERLY REPORT ON FORM 10-Q

QUARTER ENDED March 31, 2021

 

TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

 

Item 1.

Financial Statements – Unaudited

 

 

Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020

2

 

Consolidated Statements of Operations for the Three Months Ended March 31, 2021 and 2020

3

 

Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2021 and 2020

4

 

Consolidated Statements of Equity for the Three Months Ended March 31, 2021 and 2020

5

 

Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020

6

 

Notes to Condensed Consolidated Financial Statements

7

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

15

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

34

Item 4.

Controls and Procedures

35

 

 

 

PART II. OTHER INFORMATION

 

Item 1.

Legal Proceedings

36

Item 1A.

Risk Factors

36

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

36

Item 3.

Defaults Upon Senior Securities

36

Item 4.

Mine Safety Disclosures

36

Item 5.

Other Information

36

Item 6.

Exhibits

37

 

 

 

SIGNATURES

38

 

 

1


 

SITE Centers Corp.

CONSOLIDATED BALANCE SHEETS

(unaudited; in thousands, except share amounts)

 

 

March 31, 2021

 

 

December 31, 2020

 

Assets

 

 

 

 

 

 

 

Land

$

947,411

 

 

$

953,556

 

Buildings

 

3,479,583

 

 

 

3,488,499

 

Fixtures and tenant improvements

 

519,550

 

 

 

509,866

 

 

 

4,946,544

 

 

 

4,951,921

 

Less: Accumulated depreciation

 

(1,463,598

)

 

 

(1,427,057

)

 

 

3,482,946

 

 

 

3,524,864

 

Construction in progress and land

 

38,004

 

 

 

37,467

 

Total real estate assets, net

 

3,520,950

 

 

 

3,562,331

 

Investments in and advances to joint ventures, net

 

75,982

 

 

 

77,297

 

Investment in and advances to affiliate

 

190,035

 

 

 

190,035

 

Cash and cash equivalents

 

190,833

 

 

 

69,742

 

Restricted cash

 

2,868

 

 

 

4,672

 

Accounts receivable

 

63,760

 

 

 

73,517

 

Other assets, net

 

130,952

 

 

 

130,690

 

 

$

4,175,380

 

 

$

4,108,284

 

Liabilities and Equity

 

 

 

 

 

 

 

Unsecured indebtedness:

 

 

 

 

 

 

 

Senior notes, net

$

1,450,152

 

 

$

1,449,613

 

Term loan, net

 

99,679

 

 

 

99,635

 

Revolving credit facilities

 

 

 

 

135,000

 

 

 

1,549,831

 

 

 

1,684,248

 

Mortgage indebtedness, net

 

230,632

 

 

 

249,260

 

Total indebtedness

 

1,780,463

 

 

 

1,933,508

 

Accounts payable and other liabilities

 

195,050

 

 

 

215,109

 

Dividends payable

 

28,263

 

 

 

14,844

 

Total liabilities

 

2,003,776

 

 

 

2,163,461

 

Commitments and contingencies

 

 

 

 

 

 

 

SITE Centers Equity

 

 

 

 

 

 

 

Class A—6.375% cumulative redeemable preferred shares, without par value, $500 liquidation value;

   750,000 shares authorized; 350,000 shares issued and outstanding at March 31, 2021 and

   December 31, 2020

 

175,000

 

 

 

175,000

 

Class K—6.25% cumulative redeemable preferred shares, without par value, $500 liquidation value;

   750,000 shares authorized; 300,000 shares issued and outstanding at March 31, 2021 and

   December 31, 2020

 

150,000

 

 

 

150,000

 

Common shares, with par value, $0.10 stated value; 300,000,000 shares authorized; 211,035,935 and

   193,995,499 shares issued at March 31, 2021 and December 31, 2020, respectively

 

21,102

 

 

 

19,400

 

Additional paid-in capital

 

5,933,685

 

 

 

5,705,164

 

Accumulated distributions in excess of net income

 

(4,111,779

)

 

 

(4,099,534

)

Deferred compensation obligation

 

4,511

 

 

 

5,479

 

Accumulated other comprehensive loss

 

 

 

 

(2,682

)

Less: Common shares in treasury at cost: 221,684 and 898,267 shares at March 31, 2021 and

   December 31, 2020, respectively

 

(4,387

)

 

 

(11,319

)

Total SITE Centers shareholders' equity

 

2,168,132

 

 

 

1,941,508

 

Non-controlling interests

 

3,472

 

 

 

3,315

 

Total equity

 

2,171,604

 

 

 

1,944,823

 

 

$

4,175,380

 

 

$

4,108,284

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.  

 

 


2


 

SITE Centers Corp.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)

 

Three Months

 

 

Ended March 31,

 

 

2021

 

 

2020

 

Revenues from operations:

 

 

 

 

 

 

 

Rental income

$

119,890

 

 

$

112,529

 

Fee and other income

 

8,249

 

 

 

16,781

 

 

 

128,139

 

 

 

129,310

 

Rental operation expenses:

 

 

 

 

 

 

 

Operating and maintenance

 

20,216

 

 

 

18,480

 

Real estate taxes

 

19,664

 

 

 

17,657

 

Impairment charges

 

7,270

 

 

 

 

General and administrative

 

17,395

 

 

 

11,376

 

Depreciation and amortization

 

45,560

 

 

 

42,993

 

 

 

110,105

 

 

 

90,506

 

Other income (expense):

 

 

 

 

 

 

 

Interest expense

 

(19,395

)

 

 

(20,587

)

Other expense, net

 

(366

)

 

 

(13,924

)

 

 

(19,761

)

 

 

(34,511

)

(Loss) income before earnings from equity method investments and other items

 

(1,727

)

 

 

4,293

 

Equity in net income of joint ventures

 

4,385

 

 

 

2,171

 

Reserve of preferred equity interests, net

 

 

 

 

(18,057

)

Gain on sale of joint venture interest

 

13,908

 

 

 

45,681

 

(Loss) gain on disposition of real estate, net

 

(20

)

 

 

773

 

Income before tax expense

 

16,546

 

 

 

34,861

 

Tax expense of taxable REIT subsidiaries and state franchise and income taxes

 

(365

)

 

 

(233

)

Net income

$

16,181

 

 

$

34,628

 

Income attributable to non-controlling interests, net

 

(173

)

 

 

(295

)

Net income attributable to SITE Centers

$

16,008

 

 

$

34,333

 

Preferred dividends

 

(5,133

)

 

 

(5,133

)

Net income attributable to common shareholders

$

10,875

 

 

$

29,200

 

 

 

 

 

 

 

 

 

Per share data:

 

 

 

 

 

 

 

Basic

$

0.05

 

 

$

0.15

 

Diluted

$

0.05

 

 

$

0.15

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

3


SITE Centers Corp.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME  

(unaudited; in thousands)

 

 

Three Months

 

 

Ended March 31,

 

 

2021

 

 

2020

 

Net income

$

16,181

 

 

$

34,628

 

Other comprehensive income:

 

 

 

 

 

 

 

Foreign currency translation, net

 

(1

)

 

 

(785

)

Reclassification adjustment for foreign currency

   translation included in net income

 

2,683

 

 

 

 

Change in cash flow hedges reclassed to earnings

 

 

 

 

1,172

 

Total other comprehensive income

 

2,682

 

 

 

387

 

Comprehensive income

$

18,863

 

 

$

35,015

 

Total comprehensive income attributable to non-controlling interests

 

(173

)

 

 

(295

)

Total comprehensive income attributable to SITE Centers

$

18,690

 

 

$

34,720

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.  

 

4


 

SITE Centers Corp.

CONSOLIDATED STATEMENTS OF EQUITY

(unaudited; in thousands)

 

 

SITE Centers Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Shares

 

 

Common

Shares

 

 

Additional

Paid-in

Capital

 

 

Accumulated Distributions

in Excess of

Net Income

 

 

Deferred Compensation Obligation

 

 

Accumulated Other Comprehensive (Loss) Income

 

 

Treasury

Stock at

Cost

 

 

Non-

Controlling

Interests

 

 

Total

 

Balance, December 31, 2020

$

325,000

 

 

$

19,400

 

 

$

5,705,164

 

 

$

(4,099,534

)

 

$

5,479

 

 

$

(2,682

)

 

$

(11,319

)

 

$

3,315

 

 

$

1,944,823

 

Issuance of common shares related

   to stock plans

 

 

 

 

6

 

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37

 

Issuance of common shares for

   cash offering

 

 

 

 

1,696

 

 

 

219,910

 

 

 

 

 

 

 

 

 

 

 

 

3,923

 

 

 

 

 

 

225,529

 

Stock-based compensation, net

 

 

 

 

 

 

 

8,580

 

 

 

 

 

 

 

(968

)

 

 

 

 

 

3,009

 

 

 

 

 

 

10,621

 

Distributions to non-controlling

   interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16

)

 

 

(16

)

Dividends declared-common shares

 

 

 

 

 

 

 

 

 

 

(23,303

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(23,303

)

Dividends declared-preferred shares

 

 

 

 

 

 

 

 

 

 

(4,950

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,950

)

Comprehensive income

 

 

 

 

 

 

 

 

 

 

16,008

 

 

 

 

 

 

2,682

 

 

 

 

 

 

173

 

 

 

18,863

 

Balance, March 31, 2021

$

325,000

 

 

$

21,102

 

 

$

5,933,685

 

 

$

(4,111,779

)

 

$

4,511

 

 

$

 

 

$

(4,387

)

 

$

3,472

 

 

$

2,171,604

 

 

 

SITE Centers Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Shares

 

 

Common

Shares

 

 

Additional

Paid-in

Capital

 

 

Accumulated Distributions

in Excess of

Net Income

 

 

Deferred Compensation Obligation

 

 

Accumulated Other Comprehensive Loss

 

 

Treasury

Stock at

Cost

 

 

Non-

Controlling

Interests

 

 

Total

 

Balance, December 31, 2019

$

325,000

 

 

$

19,382

 

 

$

5,700,400

 

 

$

(4,066,099

)

 

$

7,929

 

 

$

(491

)

 

$

(7,707

)

 

$

3,064

 

 

$

1,981,478

 

Issuance of common shares related

   to stock plans

 

 

 

 

17

 

 

 

109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

126

 

Repurchase of common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,500

)

 

 

 

 

 

(7,500

)

Stock-based compensation, net

 

 

 

 

 

 

 

3,012

 

 

 

 

 

 

(1,935

)

 

 

 

 

 

1,607

 

 

 

 

 

 

2,684

 

Distributions to non-controlling

   interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(278

)

 

 

(278

)

Dividends declared-common shares

 

 

 

 

 

 

 

 

 

 

(38,914

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(38,914

)

Dividends declared-preferred shares

 

 

 

 

 

 

 

 

 

 

(5,133

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,133

)

Comprehensive income

 

 

 

 

 

 

 

 

 

 

34,333

 

 

 

 

 

 

387

 

 

 

 

 

 

295

 

 

 

35,015

 

Balance, March 31, 2020

$

325,000

 

 

$

19,399

 

 

$

5,703,521

 

 

$

(4,075,813

)

 

$

5,994

 

 

$

(104

)

 

$

(13,600

)

 

$

3,081

 

 

$

1,967,478

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5


SITE Centers Corp.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited; in thousands)

 

 

Three Months

 

 

Ended March 31,

 

 

2021

 

 

2020

 

Cash flow from operating activities:

 

 

 

 

 

 

 

Net income

$

16,181

 

 

$

34,628

 

Adjustments to reconcile net income to net cash flow provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

45,560

 

 

 

42,993

 

Stock-based compensation

 

7,694

 

 

 

18

 

Amortization and write-off of debt issuance costs and fair market value of debt adjustments

 

1,015

 

 

 

1,519

 

Loss on debt extinguishment

 

 

 

 

16,568

 

Equity in net income of joint ventures

 

(4,385

)

 

 

(2,171

)

Reserve of preferred equity interests, net

 

 

 

 

18,057

 

Operating cash distributions from joint ventures

 

794

 

 

 

2,121

 

Gain on sale of joint venture interest

 

(13,908

)

 

 

(45,681

)

Loss (gain) on disposition of real estate, net

 

20

 

 

 

(773

)

Impairment charges

 

7,270

 

 

 

 

Assumption of buildings due to ground lease terminations

 

 

 

 

(3,025

)

Change in notes receivable accrued interest

 

 

 

 

664

 

Net change in accounts receivable

 

13,641

 

 

 

4,177

 

Net change in accounts payable and accrued expenses

 

(13,048

)

 

 

(19,292

)

Net change in other operating assets and liabilities

 

(4,724

)

 

 

(13,953

)

Total adjustments

 

39,929

 

 

 

1,222

 

Net cash flow provided by operating activities

 

56,110

 

 

 

35,850

 

Cash flow from investing activities:

 

 

 

 

 

 

 

Real estate developed and improvements to operating real estate

 

(18,131

)

 

 

(23,022

)

Proceeds from disposition of real estate

 

11,279

 

 

 

1,060

 

Proceeds from sale of joint venture interest

 

16,067

 

 

 

140,519

 

Equity contributions to joint ventures

 

(92

)

 

 

(86

)

Distributions from joint ventures

 

1,416

 

 

 

3,168

 

Repayment of notes receivable

 

 

 

 

7,500

 

Net cash flow provided by investing activities

 

10,539

 

 

 

129,139

 

Cash flow from financing activities:

 

 

 

 

 

 

 

(Repayment of) proceeds from revolving credit facilities, net

 

(135,000

)

 

 

640,000

 

Repayment of senior notes, including repayment costs

 

 

 

 

(216,568

)

Repayment of mortgage debt

 

(18,563

)

 

 

(40,436

)

Proceeds from issuance of common shares, net of offering expenses

 

225,529

 

 

 

 

Repurchase of common shares in conjunction with equity award plans and dividend reinvestment plan

 

(4,476

)

 

 

(948

)

Repurchase of common shares

 

 

 

 

(7,500

)

Distributions to non-controlling interests and redeemable operating partnership units

 

(7

)

 

 

(278

)

Dividends paid

 

(14,844

)

 

 

(44,036

)

Net cash flow provided by financing activities

 

52,639

 

 

 

330,234

 

 

 

 

 

 

 

 

 

Effect of foreign exchange rate changes on cash and cash equivalents

 

(1

)

 

 

8

 

Net increase in cash, cash equivalents and restricted cash

 

119,288

 

 

 

495,223

 

Cash, cash equivalents and restricted cash, beginning of period

 

74,414

 

 

 

19,133

 

Cash, cash equivalents and restricted cash, end of period

$

193,701

 

 

$

514,364

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

6


 

Notes to Condensed Consolidated Financial Statements

1.

Nature of Business and Financial Statement Presentation

Nature of Business

SITE Centers Corp. and its related consolidated real estate subsidiaries (collectively, the “Company” or “SITE Centers”) and unconsolidated joint ventures are primarily engaged in the business of acquiring, owning, developing, redeveloping, leasing and managing shopping centers.  Unless otherwise provided, references herein to the Company or SITE Centers include SITE Centers Corp. and its wholly-owned subsidiaries and consolidated joint ventures.  The Company’s tenant base primarily includes national and regional retail chains and local tenants.  Consequently, the Company’s credit risk is concentrated in the retail industry.  

Use of Estimates in Preparation of Financial Statements

The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the year.  The Company considered impacts to its estimates related to COVID-19, as appropriate, within its unaudited condensed consolidated financial statements, and there may be changes to those estimates in future periods. The Company believes that its accounting estimates are appropriate after giving consideration to the uncertainties surrounding the severity and duration of the COVID-19 pandemic. Actual results could differ from those estimates.  

Unaudited Interim Financial Statements

These financial statements have been prepared by the Company in accordance with GAAP for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission.  Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements.  However, in the opinion of management, the interim financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the results of the periods presented.  The results of operations for the three months ended March 31, 2021 and 2020, are not necessarily indicative of the results that may be expected for the full year.  These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Principles of Consolidation

The consolidated financial statements include the results of the Company and all entities in which the Company has a controlling interest or has been determined to be the primary beneficiary of a variable interest entity (“VIE”).  All significant inter-company balances and transactions have been eliminated in consolidation.  Investments in real estate joint ventures in which the Company has the ability to exercise significant influence, but does not have financial or operating control, are accounted for using the equity method of accounting.  Accordingly, the Company’s share of the earnings (or loss) of these joint ventures is included in consolidated net income (loss).  

Reclassifications

Certain amounts for the three months ended March 31, 2020, have been reclassified in order to conform with the current period’s presentation.  The Company reclassified $3.5 million of interest income, primarily related to preferred equity investments that were transferred or redeemed in the fourth quarter of 2020, on its consolidated statement of operations from Interest Income to Other Expense, net.

Statements of Cash Flows and Supplemental Disclosure of Non-Cash Investing and Financing Information

Non-cash investing and financing activities are summarized as follows (in millions):

 

Three Months

 

 

Ended March 31,

 

 

2021

 

 

2020

 

Dividends declared, but not paid

$

28.3

 

 

$

44.0

 

Accounts payable related to construction in progress

 

5.7

 

 

 

7.7

 

Tax receivable

 

4.1

 

 

 

 

Assumption of buildings due to ground lease terminations

 

 

 

 

3.0

 

 

7


 

2.

Revenue Recognition

Impact of the COVID-19 Pandemic on Revenue and Receivables

Beginning in March 2020, the retail sector within the continental U.S. has been significantly impacted by the COVID-19 pandemic.  Though the impact of the COVID-19 pandemic on tenant operations has varied by tenant category, local conditions and applicable government mandates, a significant number of the Company’s tenants have experienced a reduction in sales and foot traffic, and many tenants were forced to limit their operations or close their businesses for a period of time.  The COVID-19 pandemic had no impact on the Company’s collection of rents for the first quarter of 2020, but it had a significant impact on the collection of rents for April 2020 through March 31, 2021.

The Company has engaged in discussions with most of its larger tenants that failed to satisfy all or a portion of their rent obligations during the 12 months ended March 31, 2021 and has agreed to terms on rent-deferral arrangements (and, in a small number of cases, rent abatements) and other lease modifications with a significant number of such tenants.  The Company continues to evaluate its options with respect to tenants with which the Company has not reached satisfactory resolution of unpaid rents and has commenced collection actions against several tenants.

For those tenants where the Company is unable to assert that collection of amounts due over the lease term is probable, regardless if the Company has entered into a deferral agreement to extend the payment terms, the Company has categorized these tenants on the cash basis of accounting.  As a result, no rental income is recognized from such tenants once they have been placed on the cash basis of accounting until payments are received and all existing accounts receivable relating to these tenants have been reserved in full, including straight-line rental income.  The Company will remove the cash basis designation and resume recording rental income from such tenants on a straight-line basis at such time it believes collection from the tenants is probable based upon a demonstrated payment history, improved liquidity, the addition of credit-worthy guarantors or a recapitalization event.

The Company had net billed contractual tenant accounts receivable of $12.3 million at March 31, 2021.  During the three months ended March 31, 2021, the Company recorded net uncollectible revenue that resulted in rental income of $1.4 million (the Company’s share of unconsolidated joint ventures was $0.3 million) primarily due to rental income paid in 2021 related to outstanding receivables in 2020 from tenants on the cash basis of accounting.  The Company’s share of lease modification adjustments for unconsolidated joint ventures was not material.  The aggregate amount of uncollectible revenue reported during the quarter primarily was due to the impact of the COVID-19 pandemic.

Fee and Other Income

Fee and Other Income on the consolidated statements of operations includes revenue from contracts with customers and other property-related income, primarily composed of theater income, and is recognized in the period earned as follows (in thousands):

 

Three Months

 

 

Ended March 31,

 

 

2021

 

 

2020

 

Revenue from contracts:

 

 

 

 

 

 

 

Asset and property management fees

$

6,575

 

 

$

9,325

 

Leasing commissions

 

1,017

 

 

 

2,996

 

Development fees

 

113

 

 

 

870

 

Disposition fees

 

 

 

 

1,556

 

Total revenue from contracts with customers

 

7,705

 

 

 

14,747

 

Other property income:

 

 

 

 

 

 

 

Other

 

544

 

 

 

2,034

 

Total fee and other income

$

8,249

 

 

$

16,781

 

 

8


 

3.

Investments in and Advances to Joint Ventures

At both March 31, 2021 and December 31, 2020, the Company had ownership interests in various unconsolidated joint ventures that had investments in 59 shopping center properties.  Condensed combined financial information of the Company’s unconsolidated joint venture investments is as follows (in thousands):

 

March 31, 2021

 

 

December 31, 2020

 

Condensed Combined Balance Sheets

 

 

 

 

 

 

 

Land

$

441,412

 

 

$

441,412

 

Buildings

 

1,259,441

 

 

 

1,258,879

 

Fixtures and tenant improvements

 

143,736

 

 

 

137,663

 

 

 

1,844,589

 

 

 

1,837,954

 

Less: Accumulated depreciation

 

(504,904

)

 

 

(492,288

)

 

 

1,339,685

 

 

 

1,345,666

 

Construction in progress and land

 

2,506

 

 

 

58,201

 

Real estate, net

 

1,342,191

 

 

 

1,403,867

 

Cash and restricted cash

 

47,258

 

 

 

35,212

 

Receivables, net

 

20,336

 

 

 

25,719

 

Other assets, net

 

62,116

 

 

 

61,381

 

 

$

1,471,901

 

 

$

1,526,179

 

 

 

 

 

 

 

 

 

Mortgage debt

$

1,029,240

 

 

$

1,029,579

 

Notes and accrued interest payable to the Company

 

4,707

 

 

 

4,375

 

Other liabilities

 

58,888

 

 

 

57,349

 

 

 

1,092,835

 

 

 

1,091,303

 

Accumulated equity

 

379,066

 

 

 

434,876

 

 

$

1,471,901

 

 

$

1,526,179

 

 

 

 

 

 

 

 

 

Company's share of accumulated equity

$

66,852

 

 

$

72,555

 

Basis differentials

 

5,652

 

 

 

1,644

 

Deferred development fees, net of portion related to the Company's interest

 

(1,229

)

 

 

(1,277

)

Amounts payable to the Company

 

4,707

 

 

 

4,375

 

Investments in and Advances to Joint Ventures, net

$

75,982

 

 

$

77,297

 

 

 

Three Months

 

 

Ended March 31,

 

 

2021

 

 

2020

 

Condensed Combined Statements of Operations

 

 

 

 

 

 

 

Revenues from operations

$

50,560

 

 

$

85,621

 

Expenses from operations:

 

 

 

 

 

 

 

Operating expenses

 

14,417

 

 

 

24,415

 

Impairment charges

 

 

 

 

31,720

 

Depreciation and amortization

 

17,117

 

 

 

30,104

 

Interest expense

 

10,947

 

 

 

17,755

 

Preferred share expense

 

 

 

 

4,530

 

Other expense, net

 

2,964

 

 

 

4,657