Acquisition, Development, Construction and Disposition Activity (Tables)

12 Months Ended

Dec. 31, 2013

Acquisition, Development, Construction and Disposition Activity [Abstract]

The following table provides information on operating properties acquired during 2013 (purchase price in thousands):



Acquisition Date	Property	Location	Units	Purchase Price
November 19, 2013	Lofts at Weston Lakeside	Cary, NC	215	$	38,300
November 18, 2013	St. Mary's Square	Raleigh, NC	134	27,325
October 10, 2013	The Apartments at Blakeney ⁽¹⁾	Charlotte, NC	295	53,180
September 27, 2013	Rienzi at Turtle Creek	Dallas, TX	152	48,900
July 16, 2013	Doral West	Doral, FL	388	93,500
			1,184	$	261,205


(1)	Purchase price includes assumed $28.0 million loan. Principal balance of loan assumed approximated fair value at time of acquisition.

The following table provides information on operating properties acquired during 2012 (purchase price in thousands):



Acquisition Date	Property	Location	Units	Purchase Price
August 28, 2012	The Park at Crossroads ⁽¹⁾	Cary, NC	344	$	35,200
July 23, 2012	21 Forty Medical District	Dallas, TX	396	53,350
July 17, 2012	Southpoint Village	Durham, NC	211	34,800
May 23, 2012	The Apartments at the Arboretum	Cary, NC	205	39,250
May 8, 2012	Desmond's Tower ⁽²⁾	Los Angeles, CA	—	20,000
			1,156	$	182,600


(1)	Purchase price includes assumed $24.9 million loan, with a fair value of $27.6 million.

(2)

In conjunction with our May 2012 acquisition of land for development of an apartment community, we acquired an operating commercial building. This amount represents the purchase price allocation of the commercial building component only. The purchase price allocation of $17.3 million, representing the parking lot to be used for development, is included in the "Consolidated Current Development" table within this Note.

The following table provides information on operating properties acquired during 2011 (purchase price in thousands):



Acquisition Date	Property	Location	Units	Purchase Price
October 17, 2011	The Brixton ⁽¹⁾	Dallas, TX	224	$	21,000
August 9, 2011	Dwell Vienna Metro	Fairfax, VA	250	82,600
June 15, 2011	Waterstone at Wellington	Wellington, FL	222	32,820
			696	$	136,420


(1)	Purchase price includes assumed $12.3 million loan, with a fair value of $12.9 million.

Pro Forma Financial Information

The pro forma presentation is presented for informational purposes only, and is not necessarily indicative of what our actual results of operations would have been had the acquisitions occurred at such time.



	Year Ended December 31,
(Pro forma amounts unaudited; in thousands, except per share data)	2013			2012		2011
Actual revenue from acquisitions	$	6,448		$	7,978	$	4,599
Actual net (loss) income from acquisitions	(240		)	51		(1,068		)
Pro forma revenue from total consolidated operations	193,910			184,294		175,074
Pro forma net income applicable to common shares	63,731			32,210		4,847

Pro forma earnings per common share - basic:
Pro forma net income applicable to common shares	$	1.23		$	0.70	$	0.12

Pro forma earnings per common share - diluted:
Pro forma net income applicable to common shares	$	1.22		$	0.70	$	0.12

Purchase Price Allocation

The table below provides details for each remaining property the Company plans to acquire:



(Dollar amounts in thousands, except for unit data)
Property	Location	Units	Estimated Closing Period	Purchase Price Allocation
Alpha Mill Apartments Phase I	Charlotte, NC	167	Q2 2014	$	27,220
Alpha Mill Apartments Phase II	Charlotte, NC	100	Q2 2014	18,050
1160 Hammond	Atlanta, GA	345	Q4 2014	80,350
Varela	Tampa, FL	350	Q1 2015	79,450
		962		$	205,070

The purchase price allocations for the operating properties acquired were as follows:



	December 31,
(In thousands)	2013			2012			2011
Land	$	28,578		$	25,638		$	20,056
Buildings and improvements	225,792			150,028			110,224
Furniture and fixtures	3,313			3,197			2,319
Existing leases and tenant relationships (Other assets) ⁽¹⁾	3,522			6,313			4,381
Acquired debt ^{(2) (3) (4)}	(28,000		)	(27,589		)	(12,892		)
Other liabilities	—			101			—
Total cash paid	$	233,205		$	157,688		$	124,088


(1)	See Note 5 for additional information related to intangible assets identified as existing leases and tenant relationships.


(2)	Fair value was equal to principal amount of loan assumed in 2013 at the time of acquisition.


(3)	Fair value amount of loan assumed in 2012 at the time of acquisition; actual principal amount of loan assumed was $24.9 million,


(4)	Fair value amount of loan assumed in 2011 at the time of acquisition; actual principal amount of loan assumed was $12.3 million.

Schedule of Completed, Current And Future Development

Consolidated Current Development

The following table identifies our consolidated development activity on which construction has commenced:



(Dollar amounts in thousands)
					Total							Estimated/
				Planned	Estimated						Actual	Actual
Under	Ownership			Total Units	Capital		Cost to		Total		Construction	Construction
Construction	%			(Unaudited)	Cost ⁽¹⁾		Date ⁽³⁾		Debt		Start	Completion
San Raphael Phase II	100	%		99	$	13,750	$	13,720	$	—	Q2 2012	Q4 2013
Dallas, TX
7001 Arlington Road	97.0	%	⁽²⁾	140	$	53,400	$	24,489	$	—	Q4 2012	Q2 2015
Bethesda, MD
Cantabria	100	%		249	$	56,800	$	23,647	$	2,182	Q2 2013	Q1 2015
Dallas, TX
The Desmond on Wilshire	100	%		175	$	76,300	$	28,364	$	5,918	Q2 2013	Q4 2015
Los Angeles, CA
Total				663	$	200,250	$	90,220	$	8,100


(1)	Total capital cost represents estimated costs for projects under development inclusive of all capitalized costs in accordance with GAAP.


(2)	Ownership percentage based on current equity of the joint venture and is subject to change based on changes in total equity. Costs are shown at 100%. Joint venture partner contribution is $350.


(3)	Costs to date include the cost of land.

Consolidated Future Development Pipeline - Unimproved Land



(Dollar amounts in thousands)			Estimated
			Number of Units ⁽²⁾
Name	Location	Ownership %	(Unaudited)	Costs to Date ⁽³⁾
350 Eighth ⁽¹⁾	San Francisco, CA	100%	410	$	49,791


(1)	On February 3, 2014 we entered into a 50/50 equity joint venture with AIG Global Real Estate to develop and own this property. See Note 19 for additional information.


(2)	Based on current projections as of February 4, 2014.


(3)	Costs to date include the cost of land.

Unconsolidated Future Development Pipeline - Unimproved Land



(Dollar amounts in thousands)			Estimated
			Number of Units ⁽¹⁾	Total Joint Venture
Name	Location	Ownership %	(Unaudited)	Costs to Date ⁽²⁾
950 Third	Los Angeles, CA	50.0%	472	$	32,320	⁽³⁾

Monrovia	Monrovia, CA	50.0%	154	14,043		⁽⁴⁾
Total			626	$	46,363


(1)	Based on current projections as of February 4, 2014.


(2)	Costs to date include the cost of land.


(3)	The Company's investment in this entity at December 31, 2013 is $2,320.


(4)	The Company's investment in this entity at December 31, 2013 is $7,001.

Summary of Income from Discontinued Operations

The following table summarizes "Income from discontinued operations:"



(In thousands)	2013		2012			2011
Revenue
Property revenue	$	9,191	$	21,649		$	29,545

Expenses
Property operating and maintenance	4,233		10,351			14,302
Depreciation and amortization	1,779		5,606			8,162
Total expenses	6,012		15,957			22,464
Operating income	3,179		5,692			7,081
Interest expense	—		(1,811		)	(3,439		)
Operating income, net of interest expense	3,179		3,881			3,642
Gain on disposition of properties	52,828		26,849			14,597
Income from discontinued operations	$	56,007	$	30,730		$	18,239

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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