6. Property Acquisitions, Discontinued Operations, and Assets Held for Sale

Acquisitions. In May 2012, we acquired approximately 4.7 acres of land located in Dallas, Texas for approximately $13.4 million. We intend to utilize this land holding for development of a multifamily apartment community. On June 28, 2012, we acquired one operating property comprised of 477 units located in Dallas, Texas for approximately $76.0 million.

As of December 31, 2011, we held a 20% ownership interest in twelve unconsolidated joint ventures that owned twelve apartment communities, containing 4,034 apartment homes located in Dallas, Houston, Las Vegas, Phoenix, and Southern California. In January 2012, we acquired the remaining 80% ownership interests in these joint ventures, resulting in these entities being wholly-owned by us. Selected data regarding this acquisition is presented below (in millions):



Cash consideration	$	99.5
Fair value of our 20% ownership interest held before the acquisition	24.9
Debt assumed	272.6
Net other assets/liabilities acquired	1.1
Acquisition date fair value	$	398.1

The following table summarizes the fair values of the assets acquired and liabilities assumed for the acquisitions of the twelve joint ventures and one operating property described above as of the respective acquisition/consolidation dates (in millions):



Assets acquired:
	Buildings and improvements	$	353.9
	Land	108.7
	Cash	3.4
	Restricted cash	0.7
	Intangible and other assets	12.1
Total assets acquired		$	478.8

Liabilities assumed:
	Mortgage debt (1)	$	272.6
	Other liabilities	5.5
Total liabilities assumed		$	278.1
	Net assets acquired	$	200.7

(1) Mortgage debt assumed was subsequently repaid in January 2012 at face value.

The related assets, liabilities, and results of operations for these acquisitions are included in the consolidated financial statements from the respective dates of acquisition. There was no contingent consideration associated with these acquisitions. As a result of acquiring the remaining 80% interest in these twelve joint ventures, our previously held equity interest was remeasured at fair value, resulting in a gain of approximately $40.2 million. The fair value of the equity interest was determined utilizing the consideration paid for the acquired 80% ownership interest.

The twelve former joint ventures and the one operating property acquired as discussed above contributed revenues of approximately $20.5 million and property expenses of approximately $8.3 million, from their respective acquisition/consolidation dates through June 30, 2012.

The following unaudited pro forma summary presents consolidated information assuming the acquisitions/consolidation of the twelve former joint ventures and one operating property described above had occurred on January 1, 2011. The information for the three and six months ended June 30, 2012, includes pro forma results for the portion of the period prior to the respective acquisition/consolidation dates and actual results from the respective dates of acquisition/consolidation through the end of the period.



	Pro Forma Three Months Ended June 30,				Pro Forma Six Months Ended June 30,
(in thousands)	2012		2011		2012		2011
	(unaudited)
Property revenues	$	187,884	$	174,260	$	371,315	$	344,464
Property expenses	71,234		69,623		140,751		137,521
	$	116,650	$	104,637	$	230,564	$	206,943

In July 2012, we acquired one operating property comprised of 223 units located in Atlanta, Georgia for approximately $25.3 million.

Discontinued Operations and Assets Held for Sale. For the three and six months ended June 30, 2012, income from discontinued operations included the results of operations of three operating properties, containing 1,033 apartment homes, sold in the first quarter of 2012. We had no assets classified as held for sale as of June 30, 2012.

For the three and six months ended June 30, 2011, income from discontinued operations also included the results of operations of two operating properties, containing 788 apartment homes, sold in December 2011.

The following is a summary of income from discontinued operations for the three and six months ended June 30, 2012 and 2011:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2012		2011		2012		2011
Property revenues	$	—	$	3,704	$	1,209	$	7,249
Property expenses	—		1,832		670		3,614
	—		1,872		539		3,635
Depreciation and amortization	—		977		186		1,948
Income from discontinued operations	$	—	$	895	$	353	$	1,687