Subsequent Events/Other

Subsequent Events

Subsequent to June 30, 2012, the Company:


•	Acquired one land parcel for $22.0 million;


•	Sold four properties consisting of 1,062 apartment units for $95.7 million;


•	Repaid $16.8 million in mortgage loans;


•	Issued 0.7 million Common Shares at an average price of $63.27 per share for total consideration of $47.3 million under the ATM program, leaving 6.3 million shares available for issuance;


•	Called for redemption its Series N Preferred Shares effective August 20, 2012; and


•	Elected not to draw on its senior unsecured $500.0 million delayed draw term loan facility and subject to the terms of the agreement, the facility expired undrawn.

Other

During the six months ended June 30, 2012 and 2011, the Company incurred charges of $7.3 million and $3.8 million, respectively, related to property acquisition costs, such as survey, title and legal fees, on the acquisition of operating properties and $3.6 million and $3.0 million, respectively, related to the write-off of various pursuit and out-of-pocket costs for terminated acquisition, disposition and development transactions. These costs, totaling $10.9 million and $6.8 million, respectively, are included in other expenses in the accompanying consolidated statements of operations.

On December 2, 2011, the Company entered into a contract with affiliates of Bank of America and Barclays PLC to acquire, for $1.325 billion, half of their interests - an approximately 26.5% interest overall - in Archstone, a privately-held owner, operator and developer of multifamily apartment properties. On January 20, 2012, Lehman Brothers Holdings Inc. ("Lehman"), the other owner of Archstone, acquired this 26.5% interest pursuant to a right of first offer and as a result, the Company's contract with the sellers was terminated. The Company had the exclusive right, exercisable on or before May 24, 2012, to contract to purchase the remaining 26.5% interest in Archstone owned by the same sellers for a price, determined by the Company, equal to $1.5 billion or higher. On May 24, 2012, the Company entered into a contract to purchase the remaining 26.5% interest in Archstone for $1.58 billion and Lehman exercised its right of first offer and acquired this 26.5% interest for $1.58 billion on June 6, 2012. As a result, the Company's contract was terminated and by the terms of the contract, the Company received $150.0 million in termination fees which are included in other liabilities on the consolidated balance sheet as of June 30, 2012. These fees are and were subject to certain contingencies such that the Company has recognized $70.0 million of these fees as interest and other income in July 2012 and provided it does not acquire a majority of Archstone before the first week of October 2012, it would recognize the remaining $80.0 million as interest and other income in October 2012. During the six months ended June 30, 2012, the Company incurred Archstone-related expenses of approximately $1.8 million. Cumulative to date, the Company incurred Archstone-related expenses of approximately $6.2 million, of which approximately $2.6 million of this total was financing-related and $3.6 million was pursuit costs.

During the six months ended June 30, 2012, the Company settled a dispute with the owners of a land parcel for $4.2 million, which is included in other expenses in the accompanying consolidated statements of operations.

During the six months ended June 30, 2011, the Company disposed of its corporate housing business for a sales price of approximately $4.0 million, of which the Company provided $2.0 million of seller financing to the buyer. At the time of sale, the full amount of the seller financing was reserved against and the related gain was deferred. During the six months ended June 30, 2012, the Company collected $0.3 million on this note receivable. Cumulative to date, the Company has collected $0.5 million on this note receivable and has recognized a net gain on the sale of approximately $1.5 million.

In 2010, a portion of the parking garage collapsed at one of the Company’s rental properties (Prospect Towers in Hackensack, New Jersey). The costs related to the collapse (both expensed and capitalized), including providing for residents’ interim needs, lost revenue and garage reconstruction, were approximately $22.8 million, before insurance reimbursements of $13.6 million. The garage has been rebuilt with costs capitalized as incurred. Other costs, like those to accommodate displaced residents, lost revenue due to a portion of the property being temporarily unavailable for occupancy and legal costs, reduced earnings as they were incurred. Generally, insurance proceeds were recorded as increases to earnings as they were received. During the six months ended June 30, 2012, the Company received approximately $3.5 million in insurance proceeds (included in real estate taxes and insurance on the consolidated statements of operations), which represented its final reimbursement of the $13.6 million in cumulative insurance proceeds.