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 2013, the Trust received distributions, inclusive of its preferred return, totaling $6,378,000. The Trust still holds a $229,000 preferred equity investment at December 31, 2013.

During 2012 the Trust made preferred equity contributions of $4,750,000 to its Vintage Housing venture which entitles the Trust to a 12% return.

During 2012 the Trust converted its $1,500,000 loan 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 2013, 2012 or 2011 on this investment.

The Trust recognized earnings from its Marc Realty preferred equity investments of $338,000 for the year ended December 31, 2011. 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.