Investment In Unconsolidated Joint Ventures And Investees

6 Months Ended

Jun. 30, 2011

Investment In Unconsolidated Joint Ventures And Investees

Investment In Unconsolidated Joint Ventures And Investees

NOTE 4. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES

Investments in unconsolidated joint ventures and other investees in which we have a 20% to 50% interest or otherwise exercise significant influence are carried at cost, adjusted for the Company's proportionate share of their undistributed earnings or losses, via the equity method of accounting.

Investments in unconsolidated joint ventures and other investees consist of the following:


		Percentage Ownership
		at June 30, 2011	at June 30, 2010
Garden Centura, L.P.	⁽¹⁾	5.00%	5.00%

Gruppa Florentina, LLC	⁽¹⁾	20.00%	20.00%

LK-Four Hickory, LLC	⁽¹⁾	28.57%	28.57%

⁽¹⁾ Other investees

Our partnership interest in Garden Centura, L.P. in the amount of 5% is accounted for under the equity method because we exercise significant influence over the operations and financial activities. We have guaranteed the notes payable and control the day to day activities. Accordingly, the investment is carried at cost, adjusted for the companies' proportionate share of earnings or losses. The following is a summary of the financial position and results of operations from our investees (dollars in thousands):


For the Six Months Ended June 30, 2011	Other Investees
Real estate, net of accumulated depreciation	$	118,000
Notes receivable		5,435
Other assets		43,060
Notes payable		(88,968)
Other liabilities		(14,294)
Shareholders' equity/partners capital		(63,233)

Revenue	$	28,133
Depreciation		(3,258)
Operating expenses		(23,174)
Interest expense		(2,485)

Loss from continuing operations	$	(784)
Loss from discontinued operations		-

Net loss	$	(784)

Company's proportionate share of earnings	$	3


For the Six Months Ended June 30, 2010	Other Investees
Real estate, net of accumulated depreciation	$	122,822
Notes receivable		4,667
Other assets		44,282
Notes payable		(91,762)
Other liabilities		(12,510)
Shareholders' equity/partners capital		(67,499)

Revenue	$	27,901
Depreciation		(3,203)
Operating expenses		(22,249)
Interest expense		(3,247)

Loss from continuing operations	$	(798)
Loss from discontinued operations		-

Net loss	$	(798)

Company's proportionate share of earnings	$	1

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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