Other Investments

9 Months Ended

Sep. 30, 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 September 30, 2011, we had funded $8.0 million of our commitment. A member of our Board of Directors has a $50,000 investment in the same venture.

Through September 30, 2011, we had purchased a net total of $13.8 million ($9.3 million of which was purchased during the nine months ended September 30, 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 three and nine months ended September 30, 2011, we had an unrealized loss of $3.0 million and $3.8 million, respectively related to these investments, and recognized dividend income of $0.2 million and $0.6 million, respectively, included as a component of other income in the condensed consolidated statements of income.  All of the equity securities have been in an unrealized loss position for less than 12 months.

In June 2011, we acquired a non-controlling 49% interest in a privately-held limited liability company for $25.5 million.  The entity owns a participation in a mezzanine loan, and our share of earnings for the three and nine months ended September 30, 2011 was $0.6 million and $0.6 million, respectively.