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INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES
 6 Months Ended
Jun. 30, 2013
INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES [Abstract]  
INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES [TextBlock]

NOTE 4. INVESTMENT 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.  Investments accounted for via the equity method consists of the following:

 

Investee

 

Percent ownership

 

 

 

2013

 

 

2012

 

TCI Eton Square, L.P. ("Eton Square")

 

 

0%

 

 

 

10%

 

 

Our interest in TCI Eton Square, LP in the amount of 10% was accounted for under the equity method because the general partner is a related party and exercised significant influence over the operations and financial activities. Accordingly, the investment was carried at cost, adjusted for the companies’ proportionate share of earnings or losses.  Due to the losses accounted for under the equity method, our investment was at zero.

 

As of April 8, 2013 the underlying asset owned by this entity was transferred to the existing lender in a settlement agreement and IOT no longer recorded on its books as an investment in this entity.  IOT recorded no gain or loss on the transfer.

 

The market values as of the period ended June 30, 2013 and 2012 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):

 

As of June 30,

 

2013

 

 

2012

 

Real estate, net of accumulated depreciation

 

$

-

 

 

$

12,761

 

Other assets

 

 

-

 

 

 

660

 

Notes payable

 

 

-

 

 

 

(9,363

)

Other liabilities

 

 

-

 

 

 

(3,916

)

Shareholders' equity/partners capital

 

$

-

 

 

$

(142

)

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30,

 

 

2013

 

 

 

2012

 

Rental and other property revenues

 

$

66

 

 

$

308

 

Depreciation and amortization

 

 

20

 

 

 

116

 

Property operating expenses

 

 

39

 

 

 

221

 

Mortgage and loan interest

 

 

107

 

 

 

96

 

Loss from continuing operations

 

 

(100

)

 

 

(125

)

Net loss

 

$

(100

)

 

$

(125

)

 

 

 

 

 

 

 

 

 

Company's proportionate share of earnings

 

$

-

 

 

$

(12

)