Unconsolidated Real Estate Joint Ventures

3 Months Ended

Mar. 31, 2012

Unconsolidated Real Estate Joint Ventures [Abstract]

Unconsolidated Real Estate Joint Ventures

At March 31, 2012, the Company had a 38.2% and 27.1% investment interest in two unconsolidated real estate joint ventures, Atlantic-EPR I and Atlantic-EPR II, respectively. The Company accounts for its investment in these joint ventures under the equity method of accounting.

As further discussed in Note 5, on January 1, 2012, the Company converted a $14.9 million equity interest in Atlantic-EPR I to a secured first mortgage loan of the same amount. The Company recognized a loss of $57 thousand and income of $674 thousand during the three months ended March 31, 2012 and 2011, respectively, from its equity investment in the Atlantic-EPR I joint venture. The Company also received distributions from Atlantic-EPR I of $240 thousand and $549 thousand on its equity investment during the three months ended March 31, 2012 and 2011, respectively. Condensed financial information for Atlantic-EPR I is as follows as of and for the three months ended March 31, 2012 and 2011(in thousands):



	2012			2011
Rental properties, net	$	25,863		$	26,507
Cash	1,266			581
Long-term debt	14,852			—
Partners’ equity	11,052			27,225
Rental revenue	678			1,130
Net income (loss)	(19		)	407

The Company recognized income of $106 thousand and $96 thousand from its equity investment in the Atlantic-EPR II joint venture during the three months ended March 31, 2012 and 2011, respectively. The Company also received distributions from Atlantic-EPR II of $114 thousand and $103 thousand on its equity investment during the three months ended March 31, 2012 and 2011, respectively. Condensed financial information for Atlantic-EPR II is as follows as of and for the three months ended March 31, 2012 and 2011(in thousands):



	2012		2011
Rental properties, net	$	20,461	$	20,922
Cash	131		244
Long-term debt (due September 2013)	12,126		12,505
Note payable to EPR	117		117
Partners’ equity	8,075		8,180
Rental revenue	722		722
Net income	367		359

The partnership agreements for Atlantic-EPR I and Atlantic-EPR II allow the Company’s partner, Atlantic of Hamburg, Germany (“Atlantic”), to exchange up to a maximum of 10% of its ownership interest per year in each of the joint ventures for common shares of the Company or, at the Company's discretion, the cash value of those shares as defined in each of the partnership agreements. During 2011, the Company paid Atlantic cash of $2.5 million and $258 thousand in exchange for additional ownership of 11.3% and 2.0% for Atlantic-EPR I and Atlantic-EPR II, respectively. During 2012, the Company has paid Atlantic cash of $143 thousand and $75 thousand in exchange for additional ownership of 0.6% for each of Atlantic-EPR I and Atlantic-EPR II, respectively. These exchanges did not impact total partners’ equity in either Atlantic-EPR I or Atlantic-EPR II.

In addition, as of March 31, 2012 and December 31, 2011, the Company had invested $4.2 million in unconsolidated joint ventures for three theatre projects located in China. The Company recognized a loss of $2 thousand and income of $4 thousand from its investment in these joint ventures for the three months ended March 31, 2012 and 2011, respectively.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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