Non-controlling Interest - Operating Partnership

12 Months Ended

Dec. 31, 2015

Non-controlling Interest - Operating Partnership

Non-controlling Interest – Operating Partnership

Non-controlling interest represents the aggregate Operating Partnership Units in the Company's Operating Partnership held by a wholly-owned Invesco subsidiary. Income allocated to the non-controlling interest is based on the Unit Holders’ ownership percentage of the Operating Partnership. The ownership percentage is determined by dividing the number of OP Units held by the Unit Holders by the total number of dilutive shares of common stock. The issuance of common stock (“Share” or “Shares”) or OP Units changes the percentage ownership of both the Unit Holders and the common stockholders. Since an OP unit is generally redeemable for cash or Shares at the option of the Company, it is deemed to be a Share equivalent. Therefore, such transactions are treated as capital transactions and result in an allocation between stockholders’ equity and non-controlling interest in the accompanying consolidated balance sheets. As of December 31, 2015, non-controlling interest related to the outstanding 1,425,000 OP Units represented a 1.2% interest (2014: 1.1%) in the Operating Partnership.

The following table presents the net income (loss) allocated and distributions paid to the Operating Partnership non-controlling interest for the years ended December 31, 2015, 2014 and 2013.



	Years ended December 31,
$ in thousands	2015	2014		2013
Net income (loss) allocated	1,241	(2,632	)	1,667
Distributions paid	2,494	2,850		3,491

As of December 31, 2015, distributions payable to the non-controlling interest were approximately $570,000 (2014: $641,000; 2013: $713,000).