Unconsolidated Joint Venture

6 Months Ended

Jun. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Dawsonville Bluffs Joint Venture

CatchMark formed the Dawsonville Bluffs joint venture ("Dawsonville Bluffs") with MPERS in 2017 with each owning a 50% membership interest. CatchMark uses the equity method of accounting to account for its investment in Dawsonville Bluffs. During the three months ended June 30, 2022 and 2021, CatchMark recognized $0.3 million and $0.05 million of equity income, respectively, from Dawsonville Bluffs. During the six months ended June 30, 2022 and 2021, CatchMark recognized $0.8 million and $0.7 million of equity income, respectively, from Dawsonville Bluffs. CatchMark received cash distributions of $0.3 million and $0.3 million for the three months ended June 30, 2022 and 2021, respectively. For the six months ended June 30, 2022 and 2021, CatchMark received cash distributions of $0.4 million and $0.3 million, respectively, from Dawsonville Bluffs. As of June 30, 2022, the carrying value of CatchMark's investment in Dawsonville Bluffs was $1.7 million. As of June 30, 2022, Dawsonville Bluffs had a mitigation bank with a book basis of $1.8 million remaining in its portfolio.

Asset Management Fees

CatchMark provides asset management services to Dawsonville Bluffs. Under the arrangement, CatchMark oversees the day-to-day operations of the joint venture, including accounting, reporting and other administrative services, subject to certain major decisions that require partner approval. For management of Dawsonville Bluffs, CatchMark receives a fee based on invested capital, as defined by the joint venture agreement. Additionally, CatchMark receives an incentive-based promote earned for exceeding investment hurdles.

During the first quarter of 2022, CatchMark provided transition services to Triple T under an agreement entered in October 2021. Under the transition services agreement, which was effective September 1, 2021 through March 31, 2022, CatchMark provided such services in exchange for a one-time payment of $5.0 million received in October 2021. This service fee was recognized as asset management fee revenue on a straight-line basis over the term of the transition services agreement. As of March 31, 2022, CatchMark had earned the service fee in full and the transition services agreement expired.

During the three months and six months ended June 30, 2022 and 2021, CatchMark earned the following fees from its unconsolidated joint ventures:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Triple T	$	—	$	3,112	$	2,143	$	6,224
Dawsonville Bluffs (1)	110		99		146		105
	$	110	$	3,211	$	2,289	$	6,329

(1)Includes $0.1 million and $0.1 million of incentive-based promote earned for exceeding investment hurdles for the three months ended June 30, 2022 and 2021, respectively. Includes $0.1 million and $0.1 million of incentive-based promote for the six months ended June 30, 2022 and 2021, respectively.

CatchMark Timber Trust, Inc. 10-Q