Investments in and Advances to Unconsolidated Affiliates (Tables)

9 Months Ended

Sep. 30, 2026

Equity Method Investments and Joint Ventures [Abstract]

The Company’s investments in and advances to unconsolidated affiliates consist of the following (dollars in thousands):


		Ownership Interest	September 30,		December 31,
Portfolio	Property	September 30, 2026	2026		2025

REIT:
	Gotham Plaza	49%	$	28,224	$	28,161
	Georgetown Portfolio (a)	50%		3,781		3,744
	1238 Wisconsin Avenue (a, b)	80%		17,192		18,025
	840 N. Michigan Avenue (c, d)	94.35%		37,762		34,631
				86,959		84,561
Investment Management:
Fund IV: (e)	Fund IV Other Portfolio (f)	90%		38		375
	650 Bald Hill Road (g)	90%		366		5,789
				404		6,164

Fund V: (e)	Family Center at Riverdale (c)	89.42%		—		521
	Tri-City Plaza (l)	90%		293		6,120
	Frederick County Acquisitions	90%		3,575		3,872
	Wood Ridge Plaza	90%		7,954		7,962
	La Frontera Village	90%		6,872		9,746
	Shoppes at South Hills	90%		8,775		9,151
	Mohawk Commons	90%		7,733		9,023
				35,202		46,395

Other:	Shops at Grand	5%		2,292		2,363
	Walk at Highwoods Preserve	20%		1,711		1,805
	LINQ Promenade	15%		15,372		15,918
	Shops at Skyview (h)	20%		62,751		—
	Atlantic Portfolio (i)	20%		42,901		—
	Avenue West Cobb	20%		4,296		—
	Pinewood Square	20%		4,972		—
				134,295		20,086

Various:	Due from Related Parties			2,755		1,366
	Other (j)			2,656		3,383
	Investments in and advances to unconsolidated affiliates		$	262,271	$	161,955

REIT:	Crossroads (k)	49%	$	16,336	$	16,838

Investment Management:
	Family Center at Riverdale (c, k)	89.42%	$	156		—
	Distributions in excess of income from, and investments in, unconsolidated affiliates		$	16,492	$	16,838

(a)

Represents a VIE for which the Company is not the primary beneficiary (Note 15).

(b)

Includes the amounts advanced against a $12.8 million construction commitment from the Company to the venture that holds its investment in 1238 Wisconsin. As of September 30, 2026 and December 31, 2025 the related party note receivable had a principal balance of $12.8 million, net of a $0.1 million allowance at each period. The loan is secured by the venture members’ equity interest in the entity that owns the 1238 Wisconsin development property, bears interest at Prime + 1.0% (subject to a

4.5% floor), and matures on December 28, 2027. The Company recognized interest income of $0.1 million for each of the three and nine months ended September 30, 2026 and 2025, related to this note receivable, which is recorded in Interest income in the Company’s Condensed Consolidated Statements of Operations.

(c)

Represents a tenancy-in-common interest.

(d)

The Company has a note receivable from the 840 North Michigan Avenue venture partners which had a balance of $2.1 million and $1.8 million as of September 30, 2026 and December 31, 2025, respectively, and matures in December 2026 (Note 3).

(e)

The Company owns 23.12% and 20.10% in Funds IV and V, respectively (Note 1). For the ventures within these funds, the ownership interest percentage represents the Fund’s ownership interest and not the Company’s proportionate share.

(f)

As of September 30, 2026, the investment balance relates to undistributed proceeds from the disposition of the Eden Square property.

(g)

The property was sold on April 8, 2026. As of September 30, 2026, the investment balance relates to undistributed proceeds from the disposition.

(h)

As of September 30, 2026, includes a $41.7 million preferred equity investment by the Company that was determined to be a debt instrument. The related-party advance is reported net of a $0.4 million CECL allowance. The loan bears interest at a fixed rate of 7.5%. For the three and nine months ended September 30, 2026, the Company recognized $0.6 million and $1.8 million of interest income, respectively, which is included in Interest income in the Condensed Consolidated Statements of Operations.

(i)

As of September 30, 2026, includes a $27.5 million preferred equity investment by the Company that was determined to be a debt instrument. The related-party advance is reported net of the $1.9 million unamortized discount and a $0.2 million CECL allowance. The loan bears interest at a fixed rate of 6.0%. For the three and nine months ended September 30, 2026, the Company recognized $0.3 million and $0.8 million of interest income, which is included in Interest income in the Condensed Consolidated Statements of Operations.

(j)

Includes cost-method investment in Fifth Wall. The Company recorded an impairment charge of $0.6 million for the nine months ended September 30, 2026, which is included in Realized and unrealized holding gains (losses) on investments and other in the Company’s Condensed Consolidated Statements of Operations.

(k)

Distributions have exceeded the Company’s investment; however, the Company recognizes a liability balance as it may elect to contribute capital to the entity.

(l)

The property was sold on May 28, 2026. As of September 30, 2026, the investment balance relates to undistributed proceeds from the disposition.

Schedule of Condensed Balance Sheet

The following Combined and Condensed Balance Sheets and Statements of Operations, in each period, summarized the financial information of the Company’s investments in unconsolidated affiliates that were held as of September 30, 2026 and December 31, 2025 (in thousands):


	September 30,		December 31,
	2026		2025
Combined and Condensed Balance Sheets
Assets:
Rental property, net	$	1,634,642	$	902,016
Other assets		331,445		119,689
Total assets	$	1,966,087	$	1,021,705
Liabilities and partners’ equity:
Mortgage notes payable	$	1,254,965	$	630,077
Other liabilities		230,020		127,164
Partners’ equity		481,101		264,464
Total liabilities and partners’ equity	$	1,966,087	$	1,021,705

Company's share of accumulated equity	$	228,858	$	127,079
Basis differential		8,566		8,860
Deferred fees, net of portion related to the Company's interest		2,916		4,452
Amounts receivable/payable by the Company		2,755		1,366
Investments in and advances to unconsolidated affiliates, net of Company's share of distributions in excess of income from and investments in unconsolidated affiliates		243,095		141,757
Investments carried at cost		2,683		3,360
Company's share of distributions in excess of income from and investments in unconsolidated affiliates		16,492		16,838
Investments in and advances to unconsolidated affiliates	$	262,271	$	161,955

Schedule of Condensed Income Statement


	Three Months Ended September 30,						Nine Months Ended September 30,
	2026			2025			2026			2025
Combined and Condensed Statements of Operations
Total revenues	$	56,358		$	29,073		$	156,345		$	90,215
Operating and other expenses		(18,064	)		(10,911	)		(53,032	)		(34,141	)
Interest expense		(19,398	)		(9,780	)		(54,718	)		(31,944	)
Depreciation and amortization		(27,572	)		(11,946	)		(74,455	)		(38,420	)
Gain on extinguishment of debt (a)		1,271			971			3,212			2,893
Impairment of real estate (b)		—			(3,480	)		—			(3,480	)
Gain (loss) on disposition of properties (c)		—			—			20,381			(1,030	)
Net loss attributable to unconsolidated affiliates	$	(7,405	)	$	(6,073	)	$	(2,267	)	$	(15,907	)

Company’s share of equity in net (losses) earnings of unconsolidated affiliates	$	(369	)	$	(3,596	)	$	12,248		$	(9,304	)
Basis differential amortization		(98	)		(98	)		(294	)		(294	)
Company’s equity in losses of unconsolidated affiliates	$	(467	)	$	(3,694	)	$	11,954		$	(9,598	)

(a)

Includes the gain on debt extinguishment related to the restructuring at 840 N. Michigan Avenue for the three and nine months ended September 30, 2026 and 2025.

(b)

The impairment charge for the three and nine months ended September 30, 2025 is related to the 650 Bald Hill Road property.

(c)

Includes the gain on sale of 650 Bald Hill Road and Tri-City Plaza for the nine months ended September 30, 2026 and the loss on the sale of Eden Square for the nine months ended September 30, 2025.