Property Acquisitions, Discontinued Operations, And Assets Held For Sale

3 Months Ended

Mar. 31, 2012

Property Acquisitions, Discontinued Operations, And Assets Held For Sale [Abstract]

Property Acquisitions Dispositions Discontinued Operations And Assets Held For Sale Disclosure [Text Block]

6. Property Acquisitions, Discontinued Operations, and Assets Held for Sale

Acquisitions. On January 25, 2012, we acquired the remaining 80% ownership interest in twelve unconsolidated joint ventures that owned twelve apartment communities, containing 4,034 apartment homes located in Dallas, Houston, Las Vegas, Phoenix, and Southern California, becoming the sole owner of that portfolio. Selected data regarding this acquisition is presented below (in millions):



Cash consideration	$	99.5
Fair value of our 20% ownership interest held before the acquisition	24.9
Debt assumed	272.6
Net other assets/liabilities acquired	1.1
Acquisition date fair value	$	398.1

As of March 31, 2012, the purchase price allocation is preliminary and is pending information necessary to complete the valuation of real estate and intangible assets, which may result in a change from the initial estimate. In accordance with the accounting guidance applicable to business combinations, we recorded the entire portfolio of assets and liabilities of these former joint ventures at their fair values as of the acquisition date, January 25, 2012.

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed as of the acquisition date (in millions):



Assets acquired:
	Buildings and improvements	$	292.4
	Land	96.2
	Cash	3.4
	Restricted cash	0.7
	Intangible and other assets	10.0
Total assets acquired		$	402.7

Liabilities assumed:
	Mortgage debt (1)	$	272.6
	Other liabilities	4.6
Total liabilities assumed		$	277.2
	Net assets acquired	$	125.5

(1) Mortgage debt assumed was subsequently repaid in January 2012 at face value.

The related assets, liabilities, and results of operations for these former joint ventures are included in the consolidated financial statements from the date of acquisition, January 25, 2012. There was no contingent consideration associated with this acquisition. As a result of acquiring the remaining 80% interest in these joint ventures, our previously held equity interest was remeasured at fair value, resulting in a gain of approximately $40.2 million. The fair value of the equity interest was determined utilizing the consideration paid for the acquired 80% ownership interest.

The twelve acquired former joint ventures discussed above contributed revenues of approximately $8.7 million and property expenses of approximately $3.6 million, from their respective consolidation dates through March 31, 2012.

The following unaudited pro forma summary presents consolidated information assuming the acquisition of control of the twelve joint ventures had occurred on January 1, 2011.



	Pro Forma Three Months Ended March 31,
(in thousands)	2012		2011
	(unaudited)
Property revenues	$	181,598	$	168,581
Property expenses	68,759		67,070
	$	112,839	$	101,511

Discontinued Operations and Assets Held for Sale. For the three months ended March 31, 2012, income from discontinued operations included the results of operations of three operating properties, containing 1,033 apartment homes, sold in the first quarter of 2012. We had no assets classified as held for sale as of March 31, 2012.

For the three months ended March 31, 2011, income from discontinued operations also included the results of operations of two operating properties, containing 788 apartment homes, sold in December 2011.

The following is a summary of income from discontinued operations for the three months ended March 31, 2012 and 2011:



	Three Months Ended March 31,		Three Months Ended March 31,
(in thousands)	2012		2011
Property revenues	$	1,209	$	3,545
Property expenses	670		1,782
	539		1,763
Depreciation and amortization	186		971
Income from discontinued operations	$	353	$	792

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, and assets held for sale. The tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregated would be included in this disclosure. Additionally, the entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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