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14. Advisory Fees
Pursuant to the terms of the RLJ Fund II LP Agreements, the Fund II General Partner was entitled to receive annual advisory fees directly from the limited partners in consideration for the Fund II General Partner providing and managing the day-to-day operations and expenditures of RLJ Fund II. Total advisory fees due to the Fund II General Partner from limited partners, including advisory fees due from the limited partners admitted during subsequent closes, for the three and six months ended June 30, 2011, were approximately $1.0 million and $3.2 million, respectively and for the three and six months ended June 30, 2010, were approximately $2.2 million and $4.4 million, respectively. As of June 30, 2011 and December 31, 2010, all advisory fees due had been paid by the limited partners.
Pursuant to the terms of the RLJ Fund III LP Agreements, the Fund III General Partner was entitled to receive annual advisory fees directly from the limited partners in consideration for the Fund III General Partner providing and managing the day-to-day operations and expenditures of RLJ Fund III. Total advisory fees due to the Fund III General Partner from limited partners, including advisory fees due from the limited partners admitted during subsequent closes, for the three and six months ended June 30, 2011, were approximately $1.3 million and $3.8 million, respectively and for the three and six months ended June 30, 2010, were approximately $3.4 million and $6.8 million, respectively. As of June 30, 2011 and December 31, 2010, all advisory fees due had been paid by the limited partners.
The combined consolidated financial statements of the Company reflect these advisory fees as contributions and distributions within the respective partner accounts. As a result of the combination of RLJ Development with RLJ Fund II and RLJ Fund III and after elimination entries, the actual expenses associated with operating RLJ Fund II and RLJ Fund III have been reflected in these financial statements. Upon completion of the IPO and related formation transactions, the advisory fee obligations of the limited partners ceased to exist. |