18.

Noncontrolled Entities

As of December 31, 2012, Armada Hoffler held indirect noncontrolling investments in real estate joint ventures that owned the following properties:


Property	Type	Location	Ownership %
Bermuda Crossroads	Retail	Chester, VA	50.0%
Smith’s Landing	Multifamily	Blacksburg, VA	40.0%

Armada Hoffler’s indirect ownership interests in both Bermuda Crossroads and Smith’s Landing did not provide control over these entities; however, they did provide significant influence. As a result, Armada Hoffler accounted for these investments under the equity method of accounting.

As of December 31, 2012, the carrying amount of Armada Hoffler’s investment in Bermuda Crossroads was not significant. Income from Bermuda Crossroads represents distributions received in excess of the carrying amount of Armada Hoffler’s investment. Income from Bermuda Crossroads for the year ended December 31, 2012 was not significant. Income from Bermuda Crossroads for the year ended December 31, 2011 was $0.2 million.

Liabilities for cumulative distributions in excess of cumulative investments in and earnings from equity method investees are only recognized to the extent that Armada Hoffler has guaranteed obligations of the investee. Armada Hoffler has guaranteed certain obligations of Smith’s Landing and, as a result, the carrying amount of Armada Hoffler’s investment in Smith’s Landing was $(0.7) million as of December 31, 2012. This amount is presented within other liabilities in the combined balance sheet. Equity in the earnings of Smith’s Landing for the years ended December 31, 2012 and 2011 were appoximately $0.2 million and $0.1 million, respectively.