Investments In Joint Ventures

6 Months Ended

Jun. 30, 2014

Investments In Joint Ventures [Abstract]

6. Investments in Joint Ventures

Our equity investments in unconsolidated joint ventures, which we account for utilizing the equity method of accounting, consisted of two joint ventures at June 30, 2014 and December 31, 2013, and four joint ventures at June 30, 2013. The two joint ventures in which we held an equity investment at June 30, 2014 are two discretionary investment funds (the "funds"), in which we have a 20% ownership interest. We provide property and asset management and other services to 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 the combined balance sheet and statement of income data for the unconsolidated joint ventures as of and for the periods presented:



(in millions)	June 30, 2014		December 31, 2013
Total assets	$	744.3	$	790.2
Total third-party debt	519.9		530.7
Total equity	201.3		229.6



	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2014		2013		2014		2013
Total revenues (1)	$	25.9	$	22.9	$	51.0	$	45.3
Gain on sale of operating properties, net of tax	—		95.4		18.5		95.4
Net income	1.6		98.0		21.7		100.0
Equity in income (2)	0.7		17.8		5.0		18.7

(1)

Excludes approximately $1.8 million for the three months ended June 30, 2013, and approximately $1.1 million and $3.6 million for the six months ended June 30, 2014 and 2013, respectively, related to the sale of two operating properties by the funds during the first quarter of 2014. Additionally, excludes approximately $5.8 million and $14.2 million for the three and six months ended June 30, 2013, related to the sale of 16 operating properties within two of our unconsolidated joint ventures in May and December 2013.


(2)	Equity in income excludes our ownership interest of fee income from various services provided by us to the funds.

The funds in which we have a partial interest have been funded in part with secured third-party debt. As of June 30, 2014, we had no outstanding guarantees related to loans of the funds.

We may earn fees for property and asset management, construction, development, and other services related to joint ventures in which we own an equity interest and also may earn a promoted equity interest if certain thresholds are met. Fees earned for these services were approximately $2.0 million and $2.4 million for the three months ended June 30, 2014 and 2013, respectively, and approximately $4.7 million and $5.1 million for the six months ended June 30, 2014 and 2013, respectively. We eliminate fee income for services provided to these joint ventures to the extent of our ownership.

In February 2014, each of the funds sold an operating property comprised of an aggregate of 558 apartment homes, for an aggregate of approximately $65.6 million. One of the operating properties was located in San Antonio, Texas and the other operating property was located in Houston, Texas. Our proportionate share of the gains on these transactions was approximately $3.6 million and was reported as a component of equity in income of joint ventures in the condensed consolidated statements of income and comprehensive income.

- 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.

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