Investments in Real Estate Ventures

3 Months Ended

Mar. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]


5.	INVESTMENTS IN REAL ESTATE VENTURES

As of March 31, 2017 and December 31, 2016, we had Investments in real estate ventures of $352.1 million and $355.4 million, respectively.

Approximately two-thirds of our investments are direct co-investments in 50 separate property or commingled funds for which we also have an advisory agreement. Our investment ownership percentages in these funds generally range from less than 1% to 10%. The remaining one-third of our Investments in real estate ventures, as of March 31, 2017, were attributable to investment vehicles that use our capital and outside capital primarily provided by institutional investors to invest in certain real estate ventures that own and operate real estate. Of our investments attributable to investment vehicles, the majority was invested in LaSalle Investment Company II ("LIC II"), in which we held an effective ownership interest of 48.78%.

We have maximum potential unfunded commitments to direct investments or investment vehicles of $217.3 million as of March 31, 2017, of which $68.4 million relates to our commitment to LIC II.

We evaluate our less-than-wholly-owned investments to determine whether the underlying entities are classified as variable interest entities ("VIEs"); we assess each identified VIE to determine whether we are the primary beneficiary. We have determined that we are the primary beneficiary of certain VIEs and accordingly, we have consolidated such entities. The assets of the consolidated VIEs are available only for the settlement of the obligations of the respective entities and the mortgage loans of the consolidated VIEs are non-recourse to JLL.

Summarized financial information for our consolidated VIEs is presented in the following tables.



(in millions)	March 31, 2017		December 31, 2016
Property and equipment, net	$	13.7	13.8
Investment in real estate ventures	10.3		10.3
Other assets⁽¹⁾	39.5		40.7
Total assets	$	63.5	64.8
Mortgage indebtedness	$	9.6	9.7
Other liabilities⁽¹⁾	25.4		35.0
Total liabilities	35.0		44.7
Members' equity	28.5		20.1
Total liabilities and members' equity	$	63.5	64.8

(1) Balances primarily represent investment properties and their corresponding liabilities, classified as held for sale.



	Three Months Ended March 31,
(in millions)	2017			2016
Revenue	$	1.6		1.9
Operating and other expenses	(1.2		)	(1.9	)
Net income	$	0.4		—

We allocate the members' equity and net income of the consolidated VIEs to the noncontrolling interest holders as Noncontrolling interest on our Condensed Consolidated Balance Sheets and as Net income attributable to noncontrolling interest in our Condensed Consolidated Statements of Comprehensive Income, respectively.

Impairment

There were no significant other-than-temporarily impairment charges on Investments in real estate ventures for the three months ended March 31, 2017 and 2016, respectively.

Fair Value

We report our investments in certain real estate ventures at fair value. For such investments, we increase or decrease our investment each reporting period by the estimated change in fair value, which activity we reflect as gains or losses in our Condensed Consolidated Statements of Comprehensive Income within Equity earnings from real estate ventures. The table below shows the movement in our investments in real estate ventures reported at fair value.



(in millions)	2017			2016
Fair value investments as of January 1,	$	212.7		155.2
Investments	9.0			50.9
Distributions	(9.6		)	(16.2	)
Change in fair value	(1.7		)	10.3
Foreign currency translation adjustments, net	3.6			2.1
Fair value investments as of March 31,	$	214.0		202.3