Investments in Unconsolidated Entities (Tables)

6 Months Ended

Jul. 31, 2011

Investments in Unconsolidated Entities (Tables) [Abstract]

Reconciliation of members and partners equity to the Company's carrying value

The following is a reconciliation of members’ and partners’ equity to the Company’s carrying value:

	July 31,			January 31,
	2011			2011
	(in thousands)
Members’ and partners’ equity, as below	$	987,583		$	587,164
Equity of other members and partners		857,348			616,640
Company’s investment in partnerships		130,235			(29,476	)
Basis differences (1)		177,495			76,634
Advances to and on behalf of other affiliates		94,942			93,859
Total Investments in Unconsolidated Entities	$	402,672		$	141,017
Assets — Investments in and advances to affiliates	$	685,627		$	431,509
Liabilities — Cash distributions and losses in excess of investments in unconsolidated investments		(282,955	)		(290,492	)
Total Investments in Unconsolidated Entities	$	402,672		$	141,017

(1) This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the equity method venture level, which is typically amortized over the life of the related assets and liabilities. Basis differences occur from certain acquisition, transaction and other costs, as well as other-than-temporary impairments that are not reflected in the net assets at the equity method venture level.

Summarized financial information for the equity method investments

Summarized financial information for the equity method investments is as follows:

	(Combined 100%)
	July 31,			January 31,
	2011			2011
	(in thousands)
Balance Sheet:
Real Estate
Completed rental properties	$	6,905,798		$	5,514,041
Projects under construction and development		425,495			174,106
Land held for development or sale		230,431			272,930
Total Real Estate		7,561,724			5,961,077
Less accumulated depreciation		(1,158,399	)		(944,968	)
Real Estate, net		6,403,325			5,016,109
Cash and equivalents		125,605			109,246
Restricted cash — military housing bond funds		345,365			384,584
Other restricted cash and escrowed funds		292,490			206,778
Other assets		750,381			536,246
Operating property assets held for sale(1)		-			67,190
Total Assets	$	7,917,166		$	6,320,153
Mortgage debt and notes payable, nonrecourse	$	6,461,858		$	5,301,900
Other liabilities		467,725			369,871
Liabilities of operating property held for sale(1)		-			61,218
Members’ and partners’ equity		987,583			587,164
Total Liabilities and Members’ and Partners’ Equity	$	7,917,166		$	6,320,153

(1) Represents assets and liabilities of Metropolitan Lofts, an unconsolidated apartment community in Los Angeles, California, which was disposed of on February 1, 2011.

	(Combined 100%)						(Combined 100%)
	Three Months Ended July 31,						Six Months Ended July 31,
	2011			2010			2011			2010
	(in thousands)						(in thousands)
Operations:
Revenues	$	258,831		$	218,481		$	515,020		$	451,504
Operating expenses		(140,394	)		(122,421	)		(294,786	)		(263,319	)
Interest expense including early extinguishment of debt		(86,064	)		(67,554	)		(160,291	)		(129,993	)
Impairment of real estate (1)		-			-			-			(1,457	)
Depreciation and amortization		(48,259	)		(43,485	)		(95,651	)		(80,577	)
Interest and other income		4,769			5,012			7,527			7,549
Net loss (pre-tax)	$	(11,117	)	$	(9,967	)	$	(28,181	)	$	(16,293	)
Company’s portion of net earnings (loss) (pre-tax)		2,385			2,164			9,812			(2,852	)
Impairment of investments in unconsolidated entities (1)		-			(2,282	)		-			(14,438	)
Gain (loss) on disposition of equity method investments (2)		-			(878	)		12,567			(830	)
Net earnings (loss) (pre-tax) from unconsolidated entities	$	2,385		$	(996	)	$	22,379		$	(18,120	)

Summary of Impairment of Real Estate Investments in Unconsolidated Entities

(1) The following table shows the detail of the impairment noted above:

		Three Months Ended July 31,				Six Months Ended July 31,
		2011		2010		2011		2010
		(in thousands)				(in thousands)
Impairment of real estate:
Mixed-Use Land Development:
Old Stone Crossing at Caldwell Creek	Charlotte, North Carolina	$	-	$	-	$	-	$	1,457
Company’s portion of impairment of real estate		$	-	$	-	$	-	$	743
Impairment of investments in unconsolidated entities:
Mixed-Use Land Development:
Central Station: Mercy Campus	Chicago, Illinois	$	-	$	1,817	$	-	$	1,817
Office Buildings:
818 Mission Street	San Francisco, California		-		-		-		4,018
Bulletin Building	San Francisco, California		-		-		-		3,543
Specialty Retail Centers:
Metreon	San Francisco, California		-		-		-		4,595
Other			-		465		-		465
Total impairment of investments in unconsolidated entities		$	-	$	2,282	$	-	$	14,438
Total impairment of unconsolidated entities		$	-	$	2,282	$	-	$	15,181

Summary of the gain (loss) on the disposition of unconsolidated entities

(2) Upon disposition, investments accounted for on the equity method are not classified as discontinued operations; therefore, gains or losses on the disposition of these properties are reported in continuing operations. The following table shows the detail of the gains and losses on the disposition of unconsolidated entities:

		Three Months Ended July 31,					Six Months Ended July 31,
		2011		2010			2011		2010
		(in thousands)					(in thousands)
Gain (loss) on disposition of equity method investments:
Apartment Communities:
Metropolitan Lofts	Los Angeles, California	$	-	$	-		$	9,964	$	-
Twin Lake Towers	Denver, Colorado		-		-			2,603		-
Specialty Retail Centers:
Coachella Plaza	Coachella, California		-		104			-		104
Southgate Mall	Yuma, Arizona		-		64			-		64
El Centro Mall	El Centro, California		-		-			-		48
Metreon	San Francisco, California		-		(1,046	)		-		(1,046	)
Total gain (loss) on disposition of equity method investments, net		$	-	$	(878	)	$	12,567	$	(830	)