This excerpt taken from the EQR 10-Q filed Aug 8, 2005.
Interest and other income increased by approximately $58.5 million, primarily as a result of the $57.1 million in cash received for the Companys ownership interest in Rent.com, which was acquired by eBay, Inc.
Interest expense, including amortization of deferred financing costs, increased approximately $23.5 million primarily as a result of higher overall debt balances as well as higher variable interest rates. During the six months ended June 30, 2005, the Company capitalized interest costs of approximately $5.8 million as compared to $6.9 million for the six months ended June 30, 2004. This capitalization of interest related specifically to our consolidated projects under development. The effective interest cost on all indebtedness for the six months ended June 30, 2005 was 6.18% as compared to 5.95% for the six months ended June 30, 2004.
Loss from investments in unconsolidated entities decreased approximately $7.6 million between the periods under comparison. This decrease is primarily the result of the consolidation of properties that were previously unconsolidated in the first quarter of 2004.
Net gain on sales of discontinued operations increased approximately $110.6 million between the periods under comparison primarily due to the sale of Water Terrace, a 450-unit high rise luxury apartment building in Marina del Rey, California.
Discontinued operations, net, decreased approximately $15.9 million between the periods under comparison. The decrease in revenues and expenses between periods results from the timing, size and number of properties sold. Any property sold after June 30, 2004 will include a full periods results in the six months of 2004 but minimal to no results in the six months of 2005. See Note 13 in the Notes to Consolidated Financial Statements for further discussion.