INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES

12 Months Ended

Dec. 31, 2013

INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES

INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES

 NOTE 4.        INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES

Investments in unconsolidated subsidiaries, jointly owned companies and other investees in which we have a 20% to 50% interest or otherwise exercise significant influence are carried at cost, adjusted for the Company’s proportionate share of their undistributed earnings or losses, via the equity method of accounting.

	Percent ownership
Investee	2013			2012			2011
TCI Eton Square, L.P. ("Eton Square")		0	%		10	%		10	%

            Our interest in Eton Square, LP was 0% as of December 31, 2013, and 10% as of December 31, 2012 and December 31, 2011, respectively.  We accounted for this interest under the equity method because the general partner was a related party and exercised significant influence over the operations and financial activities.  Accordingly, the investment was carried at cost, and adjusted for the Companies’ proportionate share of earnings or losses.  Due to the losses accounted for under the equity method, our investment is now at zero.

As of April 8, 2013, the underlying asset owned by this entity was transferred to the existing lender in a settlement agreement and IOT no longer recorded this entity as an investment on its books.  IOT recorded no gain or loss on the transfer.

The market value as of the year ended December 31, 2013 was zero, due to the transfer.  The market values as of December 31, 2012 and 2011 were not determinable as there were no traded markets, either active or inactive, for this investment.

The following is a summary of the financial position and results of operations from our investees (dollars in thousands):

		2013(1)			2012			2011
Real Estate, net of accumulated depreciation	$	-		$	9,660		$	12,976
Other assets		-			641			533
Notes payable		-			(9,647	)		(9,363	)
Other liabilities		(7,470	)		(3,972	)		(3,779	)
Shareholders' equity/partners' capital	$	7,470		$	3,318		$	(367	)
Rents	$	224		$	1,117		$	1,385
Depreciation and amortization		(140	)		(877	)		(462	)
Property operating expenses		(224	)		(819	)		(828	)
General and administrative		(5	)		(24	)		(15	)
Mortgage and loan interest		(155	)		(682	)		(599	)
Provision for losses		-			(2,400	)		-
Loss from continuing operations		(300	)		(3,685	)		(519	)
Income from discontinued operations		-			-			-
Net loss	$	(300	)	$	(3,685	)	$	(519	)
Company's proportionate share of losses(2)	$	-		$	(37	)	$	(52	)
(1)Financial results are represented through April 2013, the date of the asset transfer to the existing lender.
(2)Losses are recorded to the extent of the carrying value of the partner's capital contribution.