Unconsolidated Real Estate Joint Ventures

12 Months Ended

Dec. 31, 2011

Unconsolidated Real Estate Joint Ventures [Abstract]

Unconsolidated Real Estate Joint Ventures

At December 31, 2011, the Company had a 37.5% and 26.5% investment interest in two unconsolidated real estate joint ventures, Atlantic-EPR I and Atlantic-EPR II, respectively. The Company accounts for its investment in these joint ventures under the equity method of accounting.

On May 1, 2010, the Company contributed an additional $14.9 million in equity to Atlantic-EPR I to pay off the Partnership’s long-term debt at its maturity. Pursuant to the partnership agreement, the Company is entitled to earn a priority return of 15% on its additional contribution. The Company recognized income of $2.4 million, $1.9 million and $565 thousand during 2011, 2010 and 2009, respectively, from its investment in the Atlantic-EPR I joint venture. The Company also received distributions from Atlantic-EPR I of $2.4 million, $2.1 million, and $622 thousand during 2011, 2010 and 2009, respectively. Condensed financial information for Atlantic-EPR I is as follows as of and for the years ended December 31, 2011, 2010 and 2009 (in thousands):



	2011		2010		2009
Rental properties, net	$	26,024	$	26,668	$	27,313
Cash	940		1		141
Long-term debt (paid in full May 2010)	—		—		15,001
Partners’ equity	26,678		26,819		12,356
Rental revenue	3,634		4,498		4,432
Net income	473		1,878		2,443

The Company recognized income of $383, $350 and $330 (in thousands) from its investment in the Atlantic-EPR II joint venture during 2011, 2010 and 2009, respectively. The Company also received distributions from Atlantic-EPR II of $420, $389 and $364 (in thousands) during 2011, 2010 and 2009, respectively. Condensed financial information for Atlantic-EPR II is as follows as of and for the years ended December 31, 2011, 2010 and 2009 (in thousands):



	2011		2010		2009
Rental properties, net	$	20,576	$	21,037	$	21,498
Cash	131		131		139
Long-term debt (due September 2013)	12,224		12,599		12,950
Note payable to EPR	117		117		117
Partners’ equity	8,094		8,202		8,317
Rental revenue	2,889		2,889		2,876
Net income	1,401		1,366		1,331

The partnership agreements for Atlantic-EPR I and Atlantic-EPR II allow the Company’s partner, Atlantic of Hamburg, Germany (“Atlantic”), to exchange up to a maximum of 10% of its ownership interest per year in each of the joint ventures for common shares of the Company or, at our discretion, the cash value of those shares as defined in each of the partnership agreements. During 2009, the Company paid Atlantic cash of $109 and $9 (in thousands), respectively, in exchange for additional ownership of 0.7% and 0.2% for Atlantic-EPR I and Atlantic-EPR II, respectively. During 2010, the Company paid Atlantic cash of $679 and $186 (in thousands) in exchange for additional ownership of 3.1% and 1.6% for Atlantic-EPR I and Atlantic-EPR II, respectively. During 2011, the Company paid Atlantic cash of $2.5 million and $258 thousand in exchange for additional ownership of 11.3% and 2.0% for Atlantic-EPR I and Atlantic-EPR II, respectively. These exchanges did not impact total partners’ equity in either Atlantic-EPR I or Atlantic-EPR II.

In addition, as of December 31, 2011 and 2010 the Company had invested $4.2 million and $2.9 million, respectively, in unconsolidated joint ventures for three theatre projects in 2011 and two theatre projects in 2010, located in China. The Company recognized income of $42 thousand and a loss of $157 thousand from its investment in these joint ventures for the years ended December 31, 2011 and 2010, respectively. No income or loss was recognized for the year ended December 31, 2009.

- 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.

+ References+ Details