Other Investments

12 Months Ended

Dec. 31, 2011

Other Investments

Other Investments

5. Other Investments

        In January 2010, we committed $6.3 million to acquire a 5.6% interest in a privately-held limited liability company formed to acquire assets of a commercial real estate debt management and servicing business primarily for the opportunity to participate in debt opportunities arising from the venture's special servicing business (the "Participation Right"). In May 2010, we made an additional $3.4 million commitment to the venture to maintain at least a 5% ownership and its corresponding Participation Right. Because we do not have control or significant influence over the venture, the investment is accounted for under the cost method. As of December 31, 2011, we had funded $8.0 million of our commitment. For the year ended December 31, 2011 we recognized income of $1.1 million related to this investment which is included in other income on the consolidated statements of operations. There was no income for the year ended December 31, 2010 and the period from Inception through December 31, 2009.

        Through December 31, 2011, we had purchased a net total of $13.8 million ($9.3 million of which was purchased during the year ended December 31, 2011) of publicly traded equity securities that are classified as available-for-sale and carried at fair value with changes in fair value recorded to other comprehensive income (loss). For the years ended December 31, 2011 and 2010, we had an unrealized loss of $2.5 million and unrealized gain of $0.9 million related to these investments, respectively. For the years ended December 31, 2011 and 2010, we recognized dividend income of $0.8 million and $0.1 million, respectively, which is included in other income in the consolidated statements of operations. For the period from Inception through December 31, 2009, we did not own any publicly traded equity securities. All of the equity securities have been in an unrealized loss position for less than 12 months and are not other-than-temporarily impaired.

        In June 2011, we acquired a non-controlling 49% interest in a privately-held limited liability company for $25.5 million, which is accounted for under the equity method. The entity owns a mezzanine loan participation, and our share of earnings for the year ended December 31, 2011 was $1.1 million, which is included in other income on the consolidated statement of operations.