Preferred Equity Investments

12 Months Ended

Dec. 31, 2012

Preferred Equity Investments/Common Shares/Common Share Options [Abstract]

Preferred Equity Investments

7. Preferred Equity Investments

On December 21, 2012 the Trust made a $6,000,000 preferred equity contribution to its WRT-Fenway Wateridge joint venture. The Trust is entitled to a 12% priority return which is to be paid 8% currently from operating cash flow and the remaining 4% is deferred.

During 2012 the Trust made contributions of $4,750,000 to VHH in preferred equity with a 12% return.

During 2012 the Trust converted its loan of $1,500,000 to its Vintage Housing venture to preferred equity with a 12% return. During 2011 the loan bore interest at 12% with no payments due until there is operating cash flow from the property. No income was recognized in 2012 or 2011 on this investment.

The Trust recognized earnings from its Marc Realty preferred equity investments of $338,000 for each of the years ended December 31, 2011 and 2010, respectively. On January 2, 2012 the Trust restructured its 180 North Michigan preferred equity investment of $3,923,000 and its loan receivable of $2,938,000 to an equity investment.