7. Property Acquisitions, Discontinued Operations, Assets Held for Sale, and Impairments

Acquisitions. During 2011, we acquired 30.1 acres of land located in Atlanta, Georgia for approximately $40.1 million and 2.2 acres of land in Glendale, California for approximately $21.4 million. We intend to utilize these land holdings for development of multiple multifamily apartment communities. We did not acquire any operating properties during the year ended December 31, 2011.

In August 2010, the ownership of one of our joint ventures, which owns a multifamily property located in Irvine, California, was restructured and resulted in our ownership interest increasing from 30% to 99.99%. We previously accounted for this joint venture in accordance with the equity method of accounting. Following this restructuring, we have consolidated this entity for financial reporting purposes. At the time of this restructuring, we recorded the assets and liabilities of the joint venture at fair value, which resulted in an increase of real estate assets of approximately $92.7 million and a reduction to investments in joint ventures and notes receivable-affiliates of approximately $21.2 million and $20.7 million, respectively. We did not record a gain or loss on this restructuring as the net consideration approximated the fair market value of the net assets received. Subsequent to this restructuring, we repaid the joint venture's existing $52.1 million secured note, which accrued interest at LIBOR plus 2.25%, and the joint venture entered into a 35 year secured credit agreement with a third-party lender in the amount of $53.0 million with an effective annual interest rate of approximately 4.35%.

In December 2010, the ownership of two of our joint ventures, which own multifamily properties located in Houston, Texas and College Park, Maryland, were restructured and resulted in our ownership interests increasing from 30% to 99.99%. We previously accounted for these joint ventures in accordance with the equity method of accounting. Following this restructuring, we have consolidated these entities for financial reporting purposes. At the time of this restructuring, we recorded the assets and liabilities of the joint ventures at fair value, which resulted in an increase of real estate assets of approximately $146.2 million and a reduction to investments in joint ventures and notes receivable-affiliates of approximately $2.4 million and $14.3 million, respectively. We did not record a gain or loss on this restructuring as the net consideration approximated the fair market value of the net assets received. Subsequent to this restructuring, we repaid one joint venture's existing $108.8 million secured note, which accrued interest at LIBOR plus 2.0%. Additionally, we assumed the debt of one of the joint venture's secured notes with third-party lenders for approximately $27.2 million, and repaid one of the secured notes for approximately $4.6 million. The remaining $22.6 million secured note matures in May 2019 and has an effective annual interest rate of 5.33%.

The three restructured joint ventures, discussed above, contributed revenues of approximately $2.6 million and earnings, which represent property revenues less property expenses, of approximately $1.5 million, from their respective consolidation dates through December 31, 2010. These three joint ventures contributed revenues and earnings of approximately $20.8 million and $12.6 million, respectively, during the year ended December 31, 2011.

The following unaudited pro forma summary presents consolidated information (as adjusted for discontinued operations in 2011) assuming the acquisition of control of the three joint ventures had occurred on January 1, 2009.

		September 30,		September 30,
	Pro Forma Year Ended December 31,
(in thousands)	2010		2009
	(unaudited)
Property revenues	$	618,611	$	621,101

Property operating income	$	368,264	$	375,252

Discontinued Operations and Assets Held for Sale. For the year ended December 31, 2011, income from discontinued operations included the results of operations of two operating properties, containing 788 apartment homes, sold in December 2011. For the years 2010 and 2009, income from discontinued operations also included the results of operations of two operating properties sold during 2010 and one operating property sold during 2009 through their sale dates.

For the years ended December 31, 2011, 2010 and 2009, income from discontinued operations also included the results of operations of one operating property, containing 357 apartment homes, classified as held for sale at December 31, 2011. This property was sold in January 2012 for approximately $24.5 million.

The following is a summary of income from discontinued operations for the years presented below:

		September 30,		September 30,		September 30,
	Year Ended December 31,
(in thousands)	2011		2010		2009

Property revenues	$	9,206	$	19,728	$	23,686
Property expenses		4,696		9,170		10,335

		4,510		10,558		13,351
Depreciation and amortization		2,298		5,198		5,837

Income from discontinued operations	$	2,212	$	5,360	$	7,514


Gain on sale of discontinued operations, net of tax	$	24,621	$	9,614	$	16,887

Impairment. The impairment associated with land development activities for the year ended December 31, 2009 totaled approximately $72.2 million representing the difference between the estimated fair value and the carrying value of various land holdings for development projects we either placed on hold or planned to not pursue.

Impairment for the year ended December 31, 2009 also included the write-off of $13.4 million of costs capitalized and exit costs associated with a land development joint venture we placed on hold. In the fourth quarter of 2010, this joint venture was dissolved.

During the fourth quarter of 2010, we wrote-off a $1.0 million investment associated with a technology investment which we determined was no longer recoverable.

There were no impairments for the year ended December 31, 2011.