XML 84 R12.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Investments in Joint Ventures | 12 Months Ended
--- | ---
Dec. 31, 2012
Investments in Joint Ventures | 5. Investments in Joint Ventures On May 16, 2003, we entered into the 2003 Net Lease Joint Venture with an institutional investor to invest in industrial properties. We own a 15% equity interest in and provide property management services to the 2003 Net Lease Joint Venture. As of December 31, 2012, the 2003 Net Lease Joint Venture owned five industrial properties comprising approximately 2.7 million square feet of GLA. The 2003 Net Lease Joint Venture is considered a variable interest entity in accordance with the FASB guidance on the consolidation of variable interest entities. However, we continue to conclude that we are not the primary beneficiary of this venture. As of December 31, 2012, our investment in the 2003 Net Lease Joint Venture is $1,012. Our maximum exposure to loss is currently equal to our investment balance. We acquired the 85% equity interest in one property on February 13, 2012 and the 85% equity interest in another property on May 26, 2011, in each case from the institutional investor in the 2003 Net Lease Joint Venture (see Note 4). During December 2007, we entered into the 2007 Europe Joint Venture with an institutional investor to invest in, own, develop, redevelop and operate industrial properties. We continue to hold our 10% equity interest in the 2007 Europe Joint Venture. As of December 31, 2012, the 2007 Europe Joint Venture did not own any properties. On August 5, 2010, we sold our interests in the 2005 Development/Repositioning Joint Venture, the 2005 Core Joint Venture, the 2006 Land/Development Joint Venture and the 2007 Canada Joint Venture to our joint venture partner generating sale proceeds of approximately $5.0 million. We recorded an $11,226 gain related to the sale, which is included in Gain on Sale of Joint Venture Interests for the year ended December 31, 2010. On March 21, 2006, we entered into the 2006 Net Lease Co-Investment Program with an institutional investor to invest in industrial properties. We owned a 15% equity interest in and provided property management, asset management and leasing management services to the 2006 Net Lease Co-Investment Program. Pursuant to the buy/sell provision in the 2006 Net Lease Co-Investment Program’s governing agreement that our counterparty exercised on May 25, 2010, we sold our interest in the real estate property assets in the 2006 Net Lease Co-Investment Program to our counterparty and received $4,541 in net proceeds. In connection with the sale, we wrote off our carrying value for the 2006 Net Lease Co-Investment Program and recorded an $852 gain, which is included in Equity in Income of Joint Ventures for the year ended December 31, 2010. At December 31, 2012 and 2011, we have receivables from the Joint Ventures in the aggregate amount of $19 and $137, respectively. These receivable amounts are included in Prepaid Expenses and Other Assets, Net. During the years ended December 31, 2012, 2011 and 2010, we recognized fees of $516, $970 and $4,952, respectively, from our Joint Ventures. The combined summarized financial information of the investments in Joint Ventures is as follows:
|  | December 31, 2012 |  |  | December 31, 2011 |
Condensed Combined Balance Sheets: |  |  |  |  |  |  |  |
Gross Investment in Real Estate |  | $ | 115,488 |  |  | $ | 155,555 |
Less: Accumulated Depreciation |  |  | (38,535 | ) |  |  | (41,342 | )
Net Investment in Real Estate |  |  | 76,953 |  |  |  | 114,213 |
Other Assets |  |  | 17,327 |  |  |  | 23,364 |
Total Assets |  | $ | 94,280 |  |  | $ | 137,577 |
Indebtedness |  | $ | 81,764 |  |  | $ | 112,261 |
Other Liabilities |  |  | 4,817 |  |  |  | 5,779 |
Equity |  |  | 7,699 |  |  |  | 19,537 |
Total Liabilities and Equity |  | $ | 94,280 |  |  | $ | 137,577 |
Company’s Share of Equity |  | $ | 1,252 |  |  | $ | 3,029 |
Basis Differentials(1) |  |  | (448 | ) |  |  | (1,564 | )
Carrying Value of the Company’s Investments in Joint Ventures |  | $ | 804 |  |  | $ | 1,465 |
(1) | This amount represents the aggregate difference between our historical cost basis and the basis reflected at the joint venture level. Basis differentials are primarily comprised of impairments we recorded to reduce certain of our investments in the 2003 Net Lease Joint Venture to fair value and certain deferred fees which are not reflected at the joint venture level.
|  | Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Condensed Combined Statements of Operations: |  |  |  |  |  |  |  |  |  |  |  |
Total Revenues |  | $ | 12,385 |  |  | $ | 12,442 |  |  | $ | 51,552 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Operating and Other |  |  | 2,188 |  |  |  | 2,350 |  |  |  | 23,111 |
Impairment of Real Estate |  |  | — |  |  |  | — |  |  |  | 3,268 |
Depreciation and Other Amortization |  |  | 5,632 |  |  |  | 5,673 |  |  |  | 25,480 |
Interest Expense |  |  | 6,087 |  |  |  | 6,311 |  |  |  | 27,263 |
Total Expenses |  |  | 13,907 |  |  |  | 14,334 |  |  |  | 79,122 |
Discontinued Operations: |  |  |  |  |  |  |  |  |  |  |  |
(Loss) Income Attributable to Discontinued Operations |  |  | (207 | ) |  |  | 11 |  |  |  | (309 | )
Gain on Sale of Real Estate |  |  | 4,974 |  |  |  | 3,137 |  |  |  | 2,761 |
Income from Discontinued Operations |  |  | 4,767 |  |  |  | 3,148 |  |  |  | 2,452 |
Gain on Sale of Real Estate |  |  | — |  |  |  | — |  |  |  | 808 |
Net Income (Loss) |  | $ | 3,245 |  |  | $ | 1,256 |  |  | $ | (24,310 | )
Equity in Income of Joint Ventures |  | $ | 1,559 |  |  | $ | 980 |  |  | $ | 675 |

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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32787-111569 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32847-111569 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration