INVESTMENTS IN UNCONSOLIDATED ENTITIES

6 Months Ended

Jun. 30, 2012

INVESTMENTS IN UNCONSOLIDATED ENTITIES

INVESTMENTS IN UNCONSOLIDATED ENTITIES

NOTE 6—INVESTMENTS IN UNCONSOLIDATED ENTITIES

        We report investments in unconsolidated entities over whose operating and financial policies we have the ability to exercise significant influence under the equity method of accounting. We serve as the managing member of each unconsolidated entity and provide various services in exchange for fees and reimbursements. Total management fees earned in connection with these entities were $1.9 million and $1.0 million for the three months ended June 30, 2012 and 2011, respectively, and $3.7 million and $1.8 million for the six months ended June 30, 2012 and 2011, respectively. We are not required to consolidate these entities, as our joint venture partners have significant participating rights. Additionally, these entities are viable entities controlled by equity holders with sufficient capital and, therefore, are not considered variable interest entities. At both June 30, 2012 and December 31, 2011, we owned interests (ranging between 5% and 25%) in 92 properties that we accounted for under the equity method of accounting. Our net investment in these properties as of June 30, 2012 and December 31, 2011 was $104.6 million and $105.3 million, respectively. For the three months ended June 30, 2012 and 2011, we recorded income from unconsolidated entities of $0.5 million and a loss from unconsolidated entities of $0.1 million, respectively. For the six months ended June 30, 2012 and 2011, we recorded income from unconsolidated entities of $0.8 million and a loss from unconsolidated entities of $0.3 million, respectively.