Investments in Joint Ventures

9 Months Ended

Sep. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

6. Investments in Joint Ventures

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

The following table summarizes the combined balance sheet and statement of income data for the funds as of and for the periods presented:



(in millions)	September 30, 2015		December 31, 2014
Total assets	$	753.8	$	757.8
Total third-party debt	529.3		523.6
Total equity	198.5		203.3



	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2015		2014		2015		2014
Total revenues (1)	$	29.4	$	27.3	$	85.2	$	78.3
Gain on sale of operating properties, net of tax	—		—		—		18.5
Net income	3.1		2.2		8.7		23.8
Equity in income (2)	1.6		0.9		4.5		5.9


(1)	Excludes approximately $1.1 million for the nine months ended September 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 September 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. We eliminate fee income for services provided to these joint ventures to the extent of our ownership. Fees earned for these services, net of eliminations, were approximately $1.4 million and $2.0 million for the three months ended September 30, 2015 and 2014, respectively, and were approximately $4.4 million and $6.6 million for the nine months ended September 30, 2015 and 2014, respectively.

In February 2014, two of the funds each sold an operating property, comprised of 558 apartment homes, for 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.