INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES

12 Months Ended

Dec. 31, 2012

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES

NOTE 5.    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.

Investment accounted for via the equity method consists of the following:

	Percentage ownership as of December 31,
	2012			2011			2010
Garden Centura, L.P.(2)		0.00	%		0.00	%		5.00	%
Gruppa Florentina, LLC(1)		20.00	%		20.00	%		20.00	%
LK-Four Hickory, LLC(3)		0.00	%		28.57	%		28.57	%

__________________________

(1) Other investees

(2)  Other investees.  Investment in Garden Centura, L.P. sold on December 28, 2011.

(3)  Other investees.  Investment in LK-Four Hickory, LLC sold on January 17, 2012.

Our investment in Garden Centura, L.P. and LK-Four Hickory, LLC were accounted for under the equity method until December 28, 2011 and January 17, 2012, respectively, when the investments were sold.

The market values, other than unconsolidated subsidiaries, as of the year ended December 31, 2012, 2011 and 2010 were not determinable as there were no readily traded markets for these entities. The following is a summary of the financial position and results of operations from our unconsolidated subsidiaries and investees:

	For the Twelve Months Ended December 31,
	2012			2011			2010
Other Investees	(dollars in thousands)
Real estate, net of accumulated depreciation	$	12,343		$	115,641		$	120,544
Notes receivable		6,192			5,665			4,951
Other assets		32,145			41,305			42,997
Notes payable		(13,824	)		(86,144	)		(90,227	)
Other liabilities		(7,443	)		(17,885	)		(14,578	)
Shareholders equity/partners capital		(29,413	)		(58,582	)		(63,687	)
Revenue	$	45,505		$	54,579		$	54,222
Depreciation		(1,277	)		(6,474	)		(6,356	)
Operating expenses		(41,188	)		(47,510	)		(45,209	)
Interest expense		(1,181	)		(5,047	)		(6,286	)
Income from continuing operations	$	1,859		$	(4,452	)	$	(3,629	)
Income from discontinued operations		-			-			-
Net income	$	1,859		$	(4,452	)	$	(3,629	)
Company's proportionate share of earnings (losses)(1)	$	372		$	(806	)	$	(206	)
(1) Earnings represent continued and discontinued operations