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Investments In Joint Ventures
 12 Months Ended
Dec. 31, 2011
Investments In Joint Ventures [Abstract]  
Investments In Joint Ventures

8. Investments in Joint Ventures

As of December 31, 2011, our equity investments in unconsolidated joint ventures, which we account for utilizing the equity method of accounting, consisted of 17 joint ventures, with our ownership percentages ranging from 15% to 50%. We currently provide property management services to each of these joint ventures which own operating properties, and we may provide construction and development services to the joint ventures which own properties under development. The following table summarizes aggregate balance sheet and statement of income data for the unconsolidated joint ventures as of and for the periods presented (in millions):

 

September 30, September 30, September 30, September 30,
       2011        2010  

Total assets

      $ 1,394.9         $ 935.3   

Total third-party debt

        1,093.9           810.1   

Total equity

        261.6           105.3   

 

September 30, September 30, September 30, September 30,
       2011      2010      2009  

Total revenues

      $ 164.4       $137.6      $ 137.3   

Gain on sale of operating properties, net of tax

        17.4       —          —     

Net income (loss)

        (3.2 )     (19.1)        (18.0 ) 

Equity in income (loss) (1)

        5.7       (0.8)        0.7   

 

(1)

Equity in income (loss) of unconsolidated joint ventures excludes our ownership interest of fee income from various property management services and interest income from mezzanine loans with our joint ventures.

The joint ventures in which we have an interest have been funded in part with secured third-party debt. As of December 31, 2011, we had no outstanding guarantees related to loans of our unconsolidated joint ventures.

We may earn fees for property management, construction, development, and other services related to joint ventures in which we own an interest. Fees earned for these services, excluding third-party construction fees, amounted to approximately $9.3 million, $6.2 million, and $6.8 million for the years ended December 31, 2011, 2010, and 2009, respectively. We eliminate fee income for these services provided to these joint ventures to the extent of our ownership. Fees earned on third-party construction projects amounted to approximately $0.7 million, $2.0 million, and $1.2 million for the years ended December 31, 2011, 2010 and 2009, respectively.

 

During March 2011, we sold our ownership interests in three unconsolidated joint ventures for total proceeds of approximately $19.3 million and recognized a gain of approximately $1.1 million.

In April 2011, we sold one of our development properties in Washington, D.C. to one of our discretionary investment funds (the "Funds"), in which we have a 20% interest, for approximately $9.4 million and we were reimbursed for previously written-off third-party development costs, resulting in a gain of approximately $4.7 million. Additionally, in June 2011, we sold one of our development properties located in Austin, Texas to this Fund for approximately $3.1 million, resulting in a gain of approximately $0.1 million.

During the year ended December 31, 2011, the Funds also acquired eighteen multifamily properties comprised of 2,846 units located in Houston, Texas, 1,250 units located in Dallas, Texas, 768 units located in Austin, Texas, 450 units located in Tampa, Florida, 528 units located in San Antonio, Texas, and 234 units located in Atlanta, Georgia. In January 2012, one of the Funds acquired one multifamily property comprised of 350 units located in Raleigh, North Carolina.

During the fourth quarter of 2011, one of our unconsolidated joint ventures sold four operating properties consisting of 1,194 units located in Louisville, Kentucky. Our proportionate share of the gain was approximately $6.4 million, which was reported as a component of equity in income (loss) of joint ventures in the consolidated statements of income (loss) and comprehensive income.

In January 2012, we purchased the remaining 80% ownership interest in twelve unconsolidated joint ventures for approximately $99.5 million and assumed approximately $272.6 million in mortgage debt associated with these joint ventures. The purchase price and subsequent repayment of the mortgage debt was funded by proceeds received from a public equity offering as discussed in Note 4, "Common Shares." These joint ventures are comprised of 4,034 units located in Dallas, Houston, Las Vegas, Phoenix, and Southern California. We previously accounted for these joint ventures in accordance with the equity method of accounting as of December 31, 2011. Following the completion of this transaction, we will consolidate these entities for financial reporting purposes. As of the date of this filing, the initial accounting for the purchase price allocation has not been completed as we are awaiting the completion of our analysis of the net assets acquired which we expect to be completed by the end of the first quarter 2012.