Investment in Unconsolidated Joint Ventures

6 Months Ended

Jun. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Joint Ventures

As of June 30, 2016, our investment in unconsolidated joint ventures consists of effective 50% interests in three joint ventures that own data center properties at 2001 Sixth Avenue in Seattle, Washington, 2020 Fifth Avenue in Seattle, Washington and 33 Chun Choi Street in Hong Kong, and effective 20% interests in two joint ventures, one of which owns 10 data center properties with an investment fund managed by Prudential Real Estate Investors (PREI^®), and the other which owns one data center property with an affiliate of Griffin Capital Essential Asset REIT, Inc. (GCEAR). The following tables present summarized financial information for our material joint ventures as of June 30, 2016 and December 31, 2015 and for the six months ended June 30, 2016 and 2015 (unaudited, in thousands):



	As of June 30, 2016										Six Months Ended June 30, 2016
2016	Net Investment in Properties		Total Assets		Debt		Total Liabilities		Equity		Revenues		Property Operating Expense			Net Operating Income		Net Income
Total Unconsolidated Joint Ventures	$	744,517	$	923,379	$	459,232	$	555,202	$	368,177	$	66,765	$	(20,332	)	$	46,433	$	18,937
Our investment in and share of equity in earnings of unconsolidated joint ventures									$	105,673								$	8,210

	As of December 31, 2015										Six Months Ended June 30, 2015
2015	Net Investment in Properties		Total Assets		Debt		Total Liabilities		Equity		Revenues		Property Operating Expense			Net Operating Income		Net Income
Total Unconsolidated Joint Ventures	$	758,582	$	935,990	$	460,023	$	558,310	$	377,679	$	63,976	$	(17,718	)	$	46,258	$	18,360
Our investment in and share of equity in earnings of unconsolidated joint ventures									$	106,107								$	8,001

We amortize the difference between the cost of our investment in the joint ventures and the book value of the underlying equity into income on a straight-line basis consistent with the lives of the underlying assets. The amortization of this difference was approximately $0.9 million and $1.0 million for the six months ended June 30, 2016 and 2015, respectively.

Differences between the Company’s investment in the joint ventures and the amount of the underlying equity in net assets of the joint ventures are due to basis differences resulting from the Company’s equity investment recorded at its historical basis versus the fair value of the Company’s contributed interest in the joint ventures. Our proportionate share of the earnings or losses related to these unconsolidated joint ventures is reflected as equity in earnings of unconsolidated joint ventures on the accompanying consolidated income statements.