Investments in Partially Owned Entities

9 Months Ended

Sep. 30, 2011

Investments in Partially Owned Entities [Abstract]

Investments in Partially Owned Entities

6. Investments in Partially Owned Entities

The Company has co-invested in various properties with unrelated third parties which are either consolidated or accounted for under the equity method of accounting (unconsolidated). The following tables and information summarize the Company’s investments in partially owned entities as of September 30, 2011 (amounts in thousands except for project and apartment unit amounts):

	Consolidated
	Development Projects (VIEs)
	Held for and/or Under Development		Completed and Stabilized			Other			Total
Total projects (1)		—		2			19			21
Total apartments units (1)		—		441			3,475			3,916
Balance sheet information at 9/30/11 (at 100%):
ASSETS
Investment in real estate	$	25,071	$	114,570		$	447,939		$	587,580
Accumulated depreciation		—		(11,186	)		(140,444	)		(151,630	)
Investment in real estate, net		25,071		103,384			307,495			435,950
Cash and cash equivalents		1,643		1,578			11,078			14,299
Deposits – restricted		—		2,367			15,177			17,544
Escrow deposits – mortgage		—		50			—			50
Deferred financing costs, net		—		119			1,187			1,306
Other assets		89		132			136			357
Total assets	$	26,803	$	107,630		$	335,073		$	469,506
LIABILITIES AND EQUITY/CAPITAL
Mortgage notes payable	$	—	$	84,153		$	200,337		$	284,490
Accounts payable & accrued expenses		179		1,327			2,960			4,466
Accrued interest payable		—		258			720			978
Other liabilities		1,274		47			2,862			4,183
Security deposits		—		110			1,482			1,592
Total liabilities		1,453		85,895			208,361			295,709
Noncontrolling Interests – Partially Owned Properties		2,243		1,079			(5,036	)		(1,714	)
Company equity/General and Limited Partners’ Capital		23,107		20,656			131,748			175,511
Total equity/capital		25,350		21,735			126,712			173,797
Total liabilities and equity/capital	$	26,803	$	107,630		$	335,073		$	469,506
Debt – Secured (2):
Company/Operating Partnership Ownership (3)	$	—	$	84,153		$	159,068		$	243,221
Noncontrolling Ownership		—		—			41,269			41,269
Total (at 100%)	$	—	$	84,153		$	200,337		$	284,490

	Consolidated
	Development Projects (VIEs)
	Held for and/or Under Development			Completed and Stabilized			Other			Total
Operating information for the nine months ended 9/30/11 (at 100%):
Operating revenue	$	—		$	6,649		$	43,016		$	49,665
Operating expenses		207			3,083			14,487			17,777
Net operating (loss) income		(207	)		3,566			28,529			31,888
Depreciation		—			3,121			11,256			14,377
General and administrative/other		115			6			50			171
Operating (loss) income		(322	)		439			17,223			17,340
Interest and other income		5			5			10			20
Other expenses		(289	)		—			(39	)		(328	)
Interest:
Expense incurred, net		(399	)		(2,465	)		(8,948	)		(11,812	)
Amortization of deferred financing costs		—			(202	)		(341	)		(543	)
(Loss) income before income and other taxes and net gains on sales of land parcels and discontinued operations		(1,005	)		(2,223	)		7,905			4,677
Income and other tax (expense) benefit		(57	)		—			(6	)		(63	)
Net gain on sales of land parcels		4,217			—			—			4,217
Net gain on sales of discontinued operations		169			—			13,265			13,434
Net income (loss)	$	3,324		$	(2,223	)	$	21,164		$	22,265

(1) Project and apartment unit counts exclude all uncompleted development projects until those projects are substantially completed.

(2) All debt is non-recourse to the Company.

(3) Represents the Company’s/Operating Partnership’s current economic ownership interest.

The Company admitted an 80% institutional partner to two separate entities/transactions (one in December 2010 and the other in August 2011), each owning a developable land parcel, in exchange for $40.1 million in cash and retained a 20% equity interest in both of these entities. These land parcels are now unconsolidated. Total project costs are approximately $232.8 million and construction will be predominantly funded with long-term, non-recourse secured loans from the partner. While the Company is the managing member of both of the joint ventures, is responsible for constructing both of the projects and has given certain construction cost overrun guarantees, all major decisions are made jointly, the large majority of funding is provided by the partner and the partner has significant involvement in and oversight of the ongoing projects. The Company’s remaining funding obligations are currently estimated at approximately $6.6 million.

The Company is the controlling partner in various consolidated partnership properties and development properties having a negative noncontrolling interest book value of $1.7 million at September 30, 2011. The Company has identified its development partnerships as VIEs as the Company provides substantially all of the capital for these ventures (other than third party mortgage debt, if any) despite the fact that each partner legally owns 50% of each venture. The Company is the primary beneficiary as it exerts the most significant power over the ventures, absorbs the majority of the expected losses and has the right to receive a majority of the expected residual returns. The assets net of liabilities of the Company’s VIEs are restricted in their use to the specific VIE to which they relate and are not available for general corporate use. The Company does not have any unconsolidated VIEs.