XML 47 R12.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Investments in Real Estate Ventures | 12 Months Ended
--- | ---
Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Real Estate Ventures |
5. | INVESTMENTS IN REAL ESTATE VENTURES
As of December 31, 2018 and 2017, we had Investments in real estate ventures of $356.9 million and $376.2 million, respectively. Approximately 75% of our investments, as of December 31, 2018, are in 45 separate property or commingled funds, where we co-invest alongside our clients and for which we also have an advisory agreement. The remaining 25% of our Investments in real estate ventures, as of December 31, 2018, were attributable to investment vehicles that use our capital and outside capital generally provided by institutional investors to invest, primarily, 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 $240.6 million as of December 31, 2018, of which $60.4 million relates to our commitment to LIC II. Our investments in real estate ventures include investments in entities classified as VIEs, which we analyze for potential consolidation. We had equity method investments, either directly or indirectly, of $37.0 million and $7.8 million as of December 31, 2018 and 2017, respectively, in entities classified as VIEs. We have determined that we are the primary beneficiary of certain VIEs and accordingly, we have consolidated such entities. The assets of the consolidated VIEs are available only for the settlement of the obligations of the respective entities and the mortgage loans of the consolidated VIEs are non-recourse to JLL. Summarized financial information for our consolidated VIEs is presented in the following tables.
| December 31,
($ in millions) | 2018 | 2017
Property and equipment, net | $ | 48.5 |  | 15.7 |
Investments in real estate ventures | 14.0 |  | 12.6 |
Other assets (1) | 4.4 |  | 44.4 |
Total assets | $ | 66.9 |  | 72.7 |
Other current liabilities (1) | $ | 0.9 |  | 30.9 |
Mortgage indebtedness (included in Other liabilities) | 28.2 |  | 9.2 |
Total liabilities | 29.1 |  | 40.1 |
Members' equity (included in Noncontrolling interest) | 37.8 |  | 32.6 |
Total liabilities and members' equity | $ | 66.9 |  | 72.7 |
(1) Balances as of December 31, 2017 primarily represented investment properties and their corresponding liabilities, classified as held-for-sale.
| Year Ended December 31,
($ in millions) | 2018 | 2017 | 2016
Revenue | $ | 5.8 |  | 5.9 |  | 6.6 |
Operating and other expenses | (5.1 | ) | (4.2 | ) | (7.1 | )
Gain on sale of investment | 2.0 |  | — |  | 13.3 |
Net income | $ | 2.7 |  | 1.7 |  | 12.8 |
We allocate the members' equity and net income of the consolidated VIEs to the noncontrolling interest holders as Noncontrolling interest on the Consolidated Balance Sheets and as Net income attributable to noncontrolling interest in the Consolidated Statements of Comprehensive Income, respectively. The following tables summarize the combined financial information for our unconsolidated real estate ventures (including those held via LIC II) accounted for under equity method or at fair value.
|  | December 31,
($ in millions) |  | 2018 | 2017
Balance Sheets: |  |  |
| Investments in real estate, net of depreciation |  | $ | 13,217.7 |  | 17,407.4 |
| Total assets |  | 15,561.2 |  | 19,589.7 |
| Mortgage indebtedness |  | 4,968.0 |  | 6,170.5 |
| Other borrowings |  | 561.7 |  | 926.3 |
| Total liabilities |  | 6,155.8 |  | 8,301.1 |
| Total equity |  | 9,405.4 |  | 11,288.6 |
|  | Year Ended December 31,
($ in millions) | 2018 | 2017 | 2016
Statements of Operations: |  |  |
| Revenue | $ | 1,199.5 |  | 1,319.0 |  | 1,266.8 |
| Net income | 1,046.3 |  | 895.7 |  | 874.7 |
Impairment There were no significant impairment charges on properties held by our investments which were other-than-temporarily impaired during the each of the years in the three-year period ended December 31, 2018. Fair Value Based upon elections made at the date of investment, we report a majority of our investments in real estate ventures at fair value. For such investments, we increase or decrease our investment each reporting period by the change in the fair value and we report these fair value adjustments in the 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.
| Year Ended December 31,
($ in millions) | 2018 | 2017 | 2016
Fair value investments as of January 1, | $ | 242.3 |  | 212.7 |  | 155.2 |
Investments | 55.2 |  | 33.5 |  | 105.8 |
Distributions | (63.8 | ) | (37.1 | ) | (62.1 | )
Change in fair value | 13.9 |  | 28.1 |  | 16.6 |
Foreign currency translation adjustments, net | (0.3 | ) | 5.1 |  | (2.8 | )
Fair value investments as of December 31, | $ | 247.3 |  | 242.3 |  | 212.7 |
See Note 9, Fair Value Measurements, for additional discussion of our investments in real estate ventures reported at fair value.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration