Investments In Joint Ventures

9 Months Ended

Sep. 30, 2014

Equity Method Investments and Joint Ventures [Abstract]

Investments In Joint Ventures

6. Investments in Joint Ventures

Our equity investments in unconsolidated joint ventures, which we account for utilizing the equity method of accounting, consisted of two joint ventures at September 30, 2014 and December 31, 2013, and three joint ventures at September 30, 2013. The two joint ventures in which we held an equity investment at September 30, 2014 are discretionary investment funds (the "funds"), in which we have a 20% ownership interest. We provide property and asset management and other services to the joint ventures which own operating properties, and we may also provide construction and development services to the joint ventures which own properties under development. The following table summarizes the combined balance sheet and statement of income data for the unconsolidated joint ventures as of and for the periods presented:

(in millions)	September 30, 2014		December 31, 2013
Total assets	$	747.9	$	790.2
Total third-party debt	524.5		530.7
Total equity	196.8		229.6

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2014		2013		2014		2013
Total revenues (1)	$	27.3	$	23.8	$	78.3	$	69.1
Gain on sale of operating properties, net of tax	—		—		18.5		95.4
Net income	2.2		2.2		23.8		102.2
Equity in income (2)	0.9		1.9		5.9		20.7

(1) Excludes approximately $1.9 million for the three months ended September 30, 2013, and approximately $1.1 million and $5.5 million for the nine months ended September 30, 2014 and 2013, respectively, related to the sale of two operating properties by the funds during the first quarter of 2014. Additionally, excludes approximately $2.0 million and $5.9 million for the three and nine months ended September 30, 2013, related to the sale of two operating properties within one of our unconsolidated joint ventures in December 2013 and approximately $10.3 million for the nine months ended September 30, 2013 relating to the discontinued operations from the sale of 14 operating properties within one of our unconsolidated joint ventures in May 2013.

(2) Equity in income excludes our ownership interest of fee income from various services provided by us to the funds.

The funds in which we have a partial interest have been funded in part with secured third-party debt. As of September 30, 2014, we had no outstanding guarantees related to debt of the funds.

We may earn fees for property and asset management, construction, development, and other services related to joint ventures in which we own an equity interest and also may earn a promoted equity interest if certain thresholds are met. Fees earned for these services were approximately $2.0 million and $2.4 million for the three months ended September 30, 2014 and 2013, respectively, and approximately $6.6 million and $7.5 million for the nine months ended September 30, 2014 and 2013, respectively. We eliminate fee income for services provided to these joint ventures to the extent of our ownership.

In February 2014, each of the funds sold an operating property comprised of an aggregate of 558 apartment homes, for an aggregate of approximately $65.6 million. One of the operating properties was located in San Antonio, Texas and the other operating property was located in Houston, Texas. Our proportionate share of the gains on these transactions was approximately $3.6 million and was reported as a component of equity in income of joint ventures in the condensed consolidated statements of income and comprehensive income.