Real Estate Affiliates

9 Months Ended

Sep. 30, 2011

Real Estate Affiliates [Abstract]

REAL ESTATE AFFILIATES

NOTE 4 REAL ESTATE AFFILIATES

As of July 1, 2011, The Woodlands is consolidated and no longer a Real Estate Affiliate and The Woodlands Equity Investments (defined below) are considered Real Estate Affiliates (refer to Note 1). As of September 30, 2011, we own noncontrolling interests in Circle T (as defined below) and The Woodlands Equity Investments whereby, generally, we share in the profits and losses, cash flows and other matters relating to our investments in Real Estate Affiliates in accordance with our respective ownership percentages. As we have joint interest and joint control of these ventures with our venture partners, we account for these joint ventures using the equity method. For cost method investments (Note 1), we recognize earnings to the extent of dividends received from such investments, which are included, along with equity method earnings, in equity in earnings Real Estate Affiliates in our consolidated and combined statements of operations and comprehensive income (loss). In March 2011, we received approximately $3.9 million in dividends from our Summerlin Hospital Medical Center investment which is reported on the cost method.

Our interests in Westlake Retail Associates, Ltd (“Circle T Ranch”) and 170 Retail Associates Ltd (“Circle T Power Center”), and together with Circle T Ranch, (“Circle T”), located in Dallas/Fort Worth, Texas, are held through joint venture entities in which we own non-controlling interests and are unconsolidated and accounted for on the equity method. Waterway Ave Partners, L.L.C. (“Millenium Waterway Apartments”), FV-93 Limited and Timbermill-94 Limited (“Forest View and Timbermill Apartments”), Woodlands-Sarofim #1 Ltd. (“Woodlands Sarofim”) industrial buildings and Stewart Title of Montgomery County, Inc. (“Stewart Title”), all located in The Woodlands and collectively referred to as “The Woodlands Equity Investments”, are reflected in our financial statements as non-consolidated joint ventures and are accounted for on the equity method. The Woodlands (when referred to periods prior to July 1, 2011), Circle T, The Woodlands Equity Investments (when referring to periods after June 30, 2011) and certain cost method investments (for example, our interest in the Summerlin Hospital Medical Center) are collectively referred to in this report as our “Real Estate Affiliates.”

As of September 30, 2011, approximately $60.2 million of indebtedness was secured by the properties owned by our Real Estate Affiliates, our share of which was approximately $43.8 million.

									Share of Earnings
	Economic Ownership				Carrying Value				Three Months Ended					Nine Months Ended
	September 30,		December 31,		September 30,		December 31,		September 30,					September 30,
	2011		2010		2011		2010		2011		2010			2011		2010
	(in percentages)								(in thousands)
The Woodlands		—		52.50	$	—	$	131,090	$	—	$	1,226		$	3,727	$	6,398
Circle T		50.00		50.00		9,004		9,004		—		(4	)		—		(4	)
Stewart Title		50.00		—		3,714		—		85		—			85		—
Timbermill Apartments		50.00		—		5,161		—		1		—			1		—
Woodlands Sarofim		20.00		—		2,393		—		30		—			30		—
Millenium Waterway Apartments		83.55		—		21,316		—		14		—			14		—
Forest View Apartments		50.00		—		6,542		—		1		—			1		—
						48,130		140,094		131		1,222			3,858		6,394
Cost basis investments (a)						13,084		9,449		35		—			3,929		—
Investment in Real Estate Affiliates					$	61,214	$	149,543	$	166	$	1,222		$	7,787	$	6,394

(a) Share of Earnings primarily represents dividends received for cost basis investments.