Investments In Joint Ventures

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

8. Investments in Joint Ventures

Our equity investments in unconsolidated joint ventures, which we account for utilizing the equity method of accounting, consists of three funds (collectively, the "Funds"). At December 31, 2019, 2018, and 2017, we had two discretionary investment funds in which we had an ownership interest of 31.3% in each of these funds. 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. In June 2019, we amended the third fund's agreement, among other things, to reduce the investments from $450.0 million to approximately $360.0 million and increase our ownership interest from 20% to 40%. This third fund did not own any properties in 2019, 2018, or 2017. We provide property and asset management and other services to the Funds which own operating properties and we may also provide construction and development services to the Funds which own properties under development. 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)	2019		2018
Total assets	$	685.0	$	695.2
Total third-party debt	496.9		510.7
Total equity	153.4		158.4



	2019		2018		2017
Total revenues	$	131.7	$	127.4	$	121.9
Gain on sale of operating property (1)	19.8		—		—
Net income (2)	37.5		16.4		13.5
Equity in income (3) (4)	14.8		7.8		6.8


(1)	In December 2019, one of the funds sold one operating property comprised of 270 apartment homes for approximately $38.5 million.


(2)	Net income for the year ended December 31, 2017 includes approximately $1.3 million of property expense relating to Hurricanes Harvey and Irma in the third quarter of 2017.


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


(4)	Equity in income for the year ended December 31, 2019 includes our ownership interest of the gain on sale of the operating property of approximately $6.2 million. Equity in income for the year ended December 31, 2017 includes our ownership interest of the hurricane related insurance recoveries and expenses of approximately $0.4 million.

The Funds in which we have a partial interest have been funded in part with secured third-party debt. As of December 31, 2019, 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 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 $6.8 million, $5.7 million, and $5.8 million for the years ended December 31, 2019, 2018, and 2017, respectively.