Investments in Real Estate Entities (Tables)

12 Months Ended

Dec. 31, 2012

Investments in Real Estate Entities

Combined summary of the financial position of the entities accounted for using the equity method

The following is a combined summary of the financial position of the entities accounted for using the equity method, as of the dates presented (dollars in thousands):

	12-31-12		12-31-11
	(unaudited)		(unaudited)
Assets:
Real estate, net	$	1,337,084	$	1,583,397
Other assets		73,252		70,233
Total assets	$	1,410,336	$	1,653,630
Liabilities and partners' capital:
Mortgage notes payable and credit facility	$	943,259	$	1,074,429
Other liabilities		20,405		27,335
Partners' capital		446,672		551,866
Total liabilities and partners' capital	$	1,410,336	$	1,653,630

Combined summary of the operating results of the entities accounted for using the equity method

The following is a combined summary of the operating results of the entities accounted for using the equity method, for the years presented (dollars in thousands):

	For the year ended (unaudited)
	12-31-12			12-31-11			12-31-10
Rental and other income	$	172,076		$	160,066		$	114,755
Operating and other expenses		(73,955	)		(71,926	)		(56,322	)
Gain on sale of communities(1)		106,195			22,246			—
Interest expense, net		(53,904	)		(50,530	)		(40,050	)
Depreciation expense		(47,748	)		(47,920	)		(36,631	)
Net income (loss)	$	102,664		$	11,936		$	(18,248	)

(1)

Amount for the year ended December 31, 2012 includes $44,700 of gain recognized by the joint venture associated with the Company's acquisition of Avalon Del Rey from its joint venture partner.

Equity in income of unconsolidated entities

The following is a summary of the Company's equity in income of unconsolidated entities for the years presented (dollars in thousands):

	For the year ended (unaudited)
	12-31-12		12-31-11			12-31-10
Avalon Del Rey, LLC(1)	$	4,000	$	102		$	1
CVP I, LLC(2)		5,394		4,493			4,368
MVP I, LLC		493		(626	)		(881	)
AvalonBay Value Added Fund, L.P.(3)		7,041		2,204			(1,653	)
AvalonBay Value Added Fund II, L.P.		2,130		(1,053	)		(1,073	)
Juanita Village(4)		1,856		—			—
Total	$	20,914	$	5,120		$	762

(1)

During 2012, the Company purchased its joint venture partner's interest in this venture.

(2)

Equity in income from this entity for 2012, 2011, and 2010 includes $2,865, $2,815, and $2,839, respectively, relating to the Company's recognition of its promoted interest.

(3)

Equity in income for 2012 and 2011 includes the Company's proportionate share of the gain on the sale of Fund I assets of $7,971 and $3,063, respectively.

(4)

The Company's equity in income for this entity represents its residual profits interest from the sale of the community.