Investments in Joint Ventures

6 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

6. Investments in Joint Ventures

As of June 30, 2015, our equity investments in unconsolidated joint ventures, which we account for utilizing the equity method of accounting, consisted of three joint ventures (collectively "the funds"), with our ownership percentages of 20% or 31.3%. Two of the joint ventures are discretionary investment funds in which we had a 31.3% ownership interest at each of June 30, 2015 and December 31, 2014, and a 20% ownership interest at June 30, 2014. In March 2015, we completed the formation of a third discretionary investment fund with an unaffiliated third party for additional multifamily investments of up to $450.0 million. Our ownership interest in this third unconsolidated joint venture is 20% and as of June 30, 2015, this fund did not own any properties.

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)	June 30, 2015		December 31, 2014
Total assets	$	754.2	$	757.8
Total third-party debt	528.6		523.6
Total equity	201.6		203.3



	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2015		2014		2015		2014
Total revenues (1)	$	28.3	$	25.9	$	55.8	$	51.0
Gain on sale of operating properties, net of tax	—		—		—		18.5
Net income	2.9		1.6		5.6		21.7
Equity in income (2)	1.5		0.7		2.9		5.0


(1)	Excludes approximately $1.1 million for the six months ended June 30, 2014, related to the sale of two operating properties by the funds during the first quarter of 2014.


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

The funds which own properties have been funded in part with secured third-party debt. As of June 30, 2015, we had no outstanding guarantees related to loans 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 may earn a promoted equity interest if certain thresholds are met. Fees earned for these services were approximately $1.5 million and $2.0 million for the three months ended June 30, 2015 and 2014, respectively, and were approximately $3.0 million and $4.7 million for the six months ended June 30, 2015 and 2014, respectively. We eliminate fee income for services provided to these joint ventures to the extent of our ownership.

In February 2014, two of the funds each sold an operating property, comprised of an aggregate of 558 apartment homes, for an aggregate of approximately $65.6 million. 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.