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INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES
 3 Months Ended
Mar. 31, 2014
INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES  
INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES

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.

 

Investee

 

Percent ownership

 

 

 

2014

 

 

2013

 

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

 

 

0%

 

 

 

10%

 

 

Our interest in TCI Eton Square, LP was 0% as of March 31, 2014, and 10% as of March 31, 2013.  We accounted for this interest 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.

 

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

 

The market value as of March 31, 2014 was zero, due to the transfer.  The market value as of March 31, 2013 was 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 March 31,

 

2014

 

 

2013

 

Real estate, net of accumulated depreciation

 

$

-

 

 

$

9,547

 

Other assets

 

 

-

 

 

 

658

 

Notes payable

 

 

-

 

 

 

(9,689

)

Other liabilities

 

 

-

 

 

 

(4,005

)

Shareholders' equity/partners' capital

 

 

-

 

 

 

3,489

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31,

 

 

2014

 

 

 

2013

 

Rental and other property revenues

 

$

-

 

 

$

289

 

Depreciation and amortization

 

 

-

 

 

 

(120

)

Property operating expenses

 

 

-

 

 

 

(184

)

Mortgage and loan interest

 

 

-

 

 

 

(155

)

Loss from continuing operations

 

 

-

 

 

 

(170

)

Income from discontinued operations

 

 

-

 

 

 

-

 

Net loss

 

$

-

 

 

$

(170

)

 

 

 

 

 

 

 

 

 

Company's proportionate share of losses

 

$

-

 

 

$

-