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INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES

12 Months Ended

Dec. 31, 2011

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES

NOTE 4. INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES

Investments in unconsolidated subsidiaries, jointly owned companies 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.

	Percent ownership
Investee	2011	2010	2009
TCI Eton Square, L.P. ("Eton Square")	10%	10%	10%

Our interest in Eton Square in the amount of 10% is accounted for under the equity method, because the general partner is an affiliated entity, thus allowing us to exercise significant influence over the operations and financial activities. Accordingly, the investment is carried at cost, adjusted for the companies’ proportionate share of earnings or losses.

On May 18, 2010, we sold our 10.0% investment in TCI Eton Square, LP to TX Highland RS Corp, a related party under common control, for a sales price of $1.37 million. This entity owns a 225,566 square foot office and retail center known as Eton Square located in Tulsa, Oklahoma. A three-year note receivable for the full sales price was given as consideration, with an interest rate of prime plus 2%, payable at maturity on May 18, 2013. IOT has deferred the recognition of the sale in accordance with ASC 360-20 due to our continuing involvement, the inadequate initial investment and questionable recovery of investment cost.

The market values as of the year ended December 31, 2011 and 2010 were not determinable as there were no traded markets, either active or inactive, for this investment.

The following is a summary of the financial position and results of operations from our investees (dollars in thousands):

	2011			2010			2009
Real Estate, net of accumulated depreciation	$	12,976		$	13,318		$	13,747
Other assets		533			576			319
Notes payable		(9,363	)		(9,363	)		(9,253	)
Other liabilities		(3,779	)		(3,641	)		(3,895	)
Shareholders equity/partners capital	$	(367	)	$	(890	)	$	(918	)


Rents	$	1,385		$	1,893		$	1,929
Depreciation		(462	)		(504	)		(536	)
Operating expenses		(843	)		(817	)		(638	)
Interest expense		(599	)		(601	)		(611	)
Income (loss) from continuing operations		(519	)		(29	)		144
Income from discontinued operations		-			-			-
Net income (loss)	$	(519	)	$	(29	)	$	144

Company's proportionate share of earnings	$	(52	)	$	(3	)	$	18