Basis of Presentation and Principles of Consolidation

Basis of Presentation—The accompanying audited consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America ("GAAP") for complete financial statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Certain prior year amounts have been reclassified in the Company's consolidated financial statements and the related notes to conform to the current period presentation.

During the year ended December 31, 2015, the Company changed its presentation of land and development assets. Land and development assets were previously included in "Real estate, net" and "Real estate available and held for sale" on the consolidated balance sheets. Land and development assets are now included in "Land and development" on the consolidated balance sheets. Prior period amounts have been reclassified to conform to the current period presentation.

During the year ended December 31, 2015, the Company determined that its classification of common shares repurchased under its share repurchase programs should be classified as a reduction to common stock for the par amount of the common stock repurchased and additional paid in capital and included as shares unissued within the consolidated financial statements. The Company previously classified common shares repurchased under its share repurchase programs as treasury stock. The Company evaluated the impact of this correction on previously issued financial statements and concluded they were not materially misstated. In order to conform previous financial statements with the current period, the Company elected to revise previously issued financial statements the next time such financial statements are filed. The accompanying consolidated balance sheet as of December 31, 2014 and the consolidated statements of changes in equity for the years ended December 31, 2014 and 2013 have been revised accordingly. In addition, the Company will revise the consolidated statements of changes in equity for the periods ended March 31, 2015, June 30, 2015, and September 30, 2015, as those financial statements are presented in future filings.

The misclassification eliminates treasury stock and results in corresponding reductions of common stock and additional paid-in capital, which results in no change in total equity within the consolidated balance sheets and consolidated statements of changes in equity. All repurchased shares previously reported as treasury stock will now be reported as unissued common stock. The change has no impact on the previously reported consolidated statements of operations, consolidated statements of comprehensive income or consolidated statements of cash flows.

The impact of the change is as follows:



	As Reported			Change			As Adjusted⁽¹⁾
	(in thousands)
September 30, 2015
Additional paid-in capital	$	4,023,962		$	(283,193	)	$	3,740,769
Common stock	147			(63		)	84
Treasury stock, at cost	(283,256		)	283,256			—
Total	3,740,853			—			3,740,853

June 30, 2015
Additional paid-in capital	4,007,937			(263,454		)	3,744,483
Common stock	146			(61		)	85
Treasury stock, at cost	(263,515		)	263,515			—
Total	3,744,568			—			3,744,568

March 31, 2015
Additional paid-in capital	4,007,540			(263,451		)	3,744,089
Common stock	146			(61		)	85
Treasury stock, at cost	(263,512		)	263,512			—
Total	3,744,174			—			3,744,174

December 31, 2014⁽²⁾
Additional paid-in capital	4,007,514			(262,893		)	3,744,621
Common stock	146			(61		)	85
Treasury stock, at cost	(262,954		)	262,954			—
Total	3,744,706			—			3,744,706

December 31, 2013
Additional paid-in capital	4,022,138			(262,893		)	3,759,245
Common stock	144			(61		)	83
Treasury stock, at cost	(262,954		)	262,954			—
Total	3,759,328			—			3,759,328

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(1)	Common shares repurchased during the respective periods will also be reclassified on the consolidated statements of changes in equity from treasury stock, at cost to common stock and additional paid-in capital in future filings.


(2)	As of December 31, 2014, the number of common shares issued and outstanding was 85,191.

Principles of Consolidation—The consolidated financial statements include the financial statements of the Company, its wholly owned subsidiaries, controlled partnerships and variable interest entities ("VIEs") for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. The Company's involvement with VIEs affects its financial performance and cash flows primarily through amounts recorded in "Operating lease income," "Earnings from equity method investments," "Real estate expense" and "Interest expense" in the Company's consolidated statements of operations. The Company has not provided financial support to those VIEs that it was not previously contractually required to provide.

Consolidated VIEs—As of December 31, 2015, the Company consolidates VIEs for which it is considered the primary beneficiary. As of December 31, 2015, the total assets of these consolidated VIEs were $219.3 million and total liabilities were $26.5 million. The classifications of these assets are primarily within "Land and development" and "Other investments" on the Company's consolidated balance sheets. The classifications of liabilities are primarily within "Accounts payable, accrued expenses and other liabilities" on the Company's consolidated balance sheets. The liabilities of these VIEs are non-recourse to the Company and can only be satisfied from each VIE's respective assets. The Company's total unfunded commitments related to consolidated VIEs was $38.8 million as of December 31, 2015.

Unconsolidated VIEs—As of December 31, 2015, the Company has investments in VIEs where it is not the primary beneficiary, and accordingly, the VIEs have not been consolidated in the Company's consolidated financial statements. As of December 31, 2015, the Company's maximum exposure to loss from these investments does not exceed the sum of the $93.4 million carrying value of the investments, which are classified in "Other investments" on the Company's consolidated balance sheets, and $17.7 million of related unfunded commitments.