Equity Investments (Tables)

9 Months Ended

Sep. 30, 2013

The Trust’s carrying amounts in its equity investments consist of the following at September 30, 2013 and December 31, 2012 (in thousands):


Venture Partner	Equity Investment	Nominal % Ownership at September 30, 2013			September 30, 2013		December 31, 2012

VHH LLC (1)	Vintage Housing Holding LLC		75.0	%	$	33,706	$	30,534
Elad Canada Inc.	WRT-Elad One South State Equity LP		50.0	%		—		460
Elad Canada Inc.	WRT-Elad One South State Lender LP		50.0	%		24,518		24,644
Mack-Cali	WRT-Stamford LLC		20.0	%		8,916		8,501
Atrium/Northstar	10 Metrotech Loan LLC		33.3	%		11		10,845
Atrium Holding	RE CDO Management LLC		50.0	%		993		1,779
Freed	Mentor Retail LLC		49.9	%		596		551
Inland	Concord Debt Holdings LLC		33.3	%		—		—
Inland	CDH CDO LLC		24.8	%		—		—
Inland (2)	Concord Debt Holdings LLC		33.3	%		982		3,974
Inland (2)	CDH CDO LLC		24.8	%		4,181		322
Sealy (1)	Northwest Atlanta Partners LP		60.0	%		7,741		8,104
Sealy (1)	Newmarket GP LLC		68.0	%		—		—
Sealy (1)	Airpark Nashville GP		50.0	%		—		—
Marc Realty (1)	Brooks Building LLC		50.0	%		8,076		7,983
Marc Realty (1)	High Point Plaza LLC		50.0	%		2,137		2,241
Marc Realty (1)	1701 Woodfield LLC		50.0	%		2,052		1,977
Marc Realty (1)	Enterprise Center LLC		50.0	%		2,440		2,679
Marc Realty (1)	Atrium Mall LLC		50.0	%		3,904		—
ROIC	WRT-ROIC Lakeside Eagle LLC		50.0	%		3		—
New Valley/Starwood	Socal Office Portfolio Loan LLC		73.0	%		—		8
New Valley/Witkoff	701 7th WRT Investors LLC		70.6	%		36,989		28,735
Fenway	WRT-Fenway Wateridge LLC		50.0	%		1,816		1,522

					$	139,061	$	134,859

(1)	The Trust has determined that these equity investments are investments in VIEs. The Trust has determined that it is not the primary beneficiary of these VIEs since the Trust does not have the power to direct the activities that most significantly impact the economic performance of the VIEs.

(2)	Represents the interests acquired from Lexington Realty Trust on May 1, 2012.

The following table reflects the activity of the Trust’s equity investments for the period ended September 30, 2013 (in thousands):


Investment	Balance at December 31, 2012		Contributions		Equity Income (loss)			Distributions			Sales Price			Balance at September 30, 2013

Vintage Housing Holding LLC (2)	$	30,534	$	—	$	7,142		$	(3,970	)	$	—		$	33,706
WRT-Elad One South State Equity LP (2)		460		1,013		(1,473	)		—			—			—
WRT-Elad One South State Lender LP (2)		24,644		—		2,988			(3,114	)		—			24,518
WRT-Stamford LLC		8,501		—		701			(286	)		—			8,916
10 Metrotech LLC		10,845		—		3,284			(14,118	)		—			11
RE CDO Management LLC		1,779		—		3,710			(4,496	)		—			993
Mentor Retail LLC		551		—		45			—			—			596
Concord Debt Holdings LLC		—		—		3,041			(3,041	)		—			—
CDH CDO LLC		—		—		415			(402	)		(13	)		—
701 7th WRT Investors LLC (3)		28,735		7,745		2,375			(1,866	)		—			36,989
WRT-Fenway Wateridge LLC (2)		1,522		161		133			—			—			1,816
CDH CDO LLC (1)		322		—		4,274			(402	)		(13	)		4,181
Sealy		8,104		—		(363	)		—			—			7,741
Marc Realty		14,880		—		(17	)		(158	)					14,705
Atrium Mall LLC		—		3,935		(31	)		—			—			3,904
WRT-ROIC Lakeside Eagle LLC		—		25		(22	)		—			—			3
SoCal Office Portfolio Loan LLC		8		—		(2	)		(6	)		—			—
Concord Debt Holdings LLC (1)		3,974		—		49			(3,041	)		—			982

Total	$	134,859	$	12,879	$	26,249		$	(34,900	)	$	(26	)	$	139,061

(1)	Represents the interests acquired from Lexington Realty Trust on May 1, 2012.

(2)	The Trust has elected to report its share of earnings from the investment on a one month lag period.

(3)	The Trust has elected to report its share of earnings from the investment on a three month lag period.

Vintage Housing Holding LLC [Member]

The summarized balance sheets of the Trust’s Vintage Housing Holding LLC venture is as follows (in thousands):


	September 30, 2013		December 31, 2012
ASSETS
Real estate, net	$	360,851	$	340,666
Cash and cash equivalents		5,469		6,555
Restricted cash held in escrows		45,380		41,878
Receivables and other assets		19,964		26,681

Total Assets	$	431,664	$	415,780


LIABILITIES AND MEMBERS’ CAPITAL
Mortgage and notes payable	$	313,078	$	298,654
Other liabilities		47,443		53,687
Non-controlling interests		18,006		15,997
Members’ Capital		53,137		47,442

Total Liabilities and Members’ Capital	$	431,664	$	415,780


Carrying value of the Trust’s investment in Vintage Housing Holding	$	33,706	$	30,534

The summarized statements of operations of the Trust’s Vintage Housing Holding LLC venture is as follows (in thousands):


	For the Three Months Ended September 30, 2013		For the Three Months Ended September 30, 2012		For the Nine Months Ended September 30, 2013		For the Nine Months Ended September 30, 2012

Total revenue	$	11,048	$	10,328	$	32,451	$	30,928

Expenses
Operating		4,649		4,254		13,952		12,250
Real estate taxes		128		139		397		442
Interest		485		1,503		1,480		4,824
Depreciation and amortization		446		978		1,137		6,605
Other expenses		1,453		1,323		4,176		4,048

Total expenses		7,161		8,197		21,142		28,169

Net income		3,887		2,131		11,309		2,759
Loss attributable to non-controlling interests		676		29		1,399		791

Net income attributable to VHH	$	4,563	$	2,160	$	12,708	$	3,550

Trust’s share of net income	$	2,525	$	1,392	$	7,142	$	2,326

CDH CDO LLC [Member]

The summarized balance sheets of the Trust’s CDH CDO LLC venture are as follows (in thousands):


	September 30, 2013		December 31, 2012
ASSETS
Cash and cash equivalents	$	2,031	$	1,885
Real estate debt investments carried at fair value		183,110		185,060
Securities carried at fair value		80,463		95,994
Real estate, net		—		19,909
Interest and other receivables		1,066		1,030
Other assets		319		3,893

Total Assets	$	266,989	$	307,771


LIABILITIES AND MEMBERS’ CAPITAL
Collateralized debt obligation carried at fair value		153,361		191,345
Mortgage note payable		—		22,293
Interest rate swap liability		8,270		11,413
Other liabilities		2,727		5,423
Non-controlling interests		102		102
Members’ Capital		102,529		77,195

Total Liabilities and Members’ Capital	$	266,989	$	307,771


Carrying value of the Trust’s investments in CDH CDO LLC	$	4,181	$	322

The summarized statement of operations of the Trust’s CDH CDO LLC venture is as follows (in thousands):


	For the Three Months Ended September 30, 2013			For the Three Months Ended September 30, 2012			For the Nine Months Ended September 30, 2013			For the Nine Months Ended September 30, 2012
Interest, dividends and discount accretion	$	4,469		$	4,688		$	12,654		$	13,362
Expenses
Interest expense		1,598			1,651			4,791			5,012
Fees and expenses paid to related party		250			250			750			750
General and administrative		328			304			891			964

Total expenses		2,176			2,205			6,432			6,726


Net investment income:		2,293			2,483			6,222			6,636
Net property income		(55	)		(5	)		(205	)		(282	)
Loss on sale of real estate		(2,909	)		—			(2,909	)		—
Gain on extinguishment of debt		4,827			—			4,827			—
Realized gain (loss) from investments		13,367			1,716			13,361			(1,042	)
Unrealized gain (loss) from investments		391			620			5,886			7,436


Net income		17,914			4,814			27,182			12,748


Trust’s share of net income	$	3,367		$	855		$	4,274		$	1,333