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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES
 12 Months Ended
Dec. 31, 2014
Investments, Equity Method and Joint Ventures:  
INVESTMENT IN UNCONSOLIDATED JOINT-VENTURES AND INVESTEES

 NOTE 5.     INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES

 

Investments in unconsolidated subsidiaries, jointly owned companies and other investees in which we have a 20% to 50% interest or otherwise exercise significant influence are carried at cost, adjusted for the Company’s proportionate share of their undistributed earnings or losses, via the equity method of accounting. ARL is our parent company and is considered as an unconsolidated joint venture.

 

Investments accounted for via the equity method consists of the following:

 

 

 

 

Percentage ownership as of December 31,

 

 

 

2014

 

2013

 

2012

American Realty Investors, Inc. (1)

 

1.00%

 

1.99%

 

1.99%

 

_________________________________ 

 

 

 

 

 

 

(1)

Unconsolidated investment in parent company

 

 

 

 

 

            Our interest in the common stock of ARL in the amount of 1.00% is accounted for under the equity method.  Accordingly, the investment is carried at cost, adjusted for the company’s proportionate share of earnings or losses.

 

The market values, other than unconsolidated subsidiaries, as of the year ended December 31, 2014, 2013 and 2012 were not determinable as there were no readily traded markets for these entities. The following is a summary of the financial position and results of operations from our unconsolidated subsidiaries and investees (dollars in thousands):

 

 

 

 

For the Twelve Months Ended December 31,

 

Unconsolidated Subsidiaries

 

2014

 

 

2013

 

 

2012

 

Real estate, net of accumulated depreciation

 

$

15,460

 

 

$

11,944

 

 

$

45,032

 

Notes Receivable

 

 

50,909

 

 

 

68,909

 

 

 

44,371

 

Other assets

 

 

128,635

 

 

 

128,945

 

 

 

130,419

 

Notes payable

 

 

(50,048

)

 

 

(56,103

)

 

 

(61,720

)

Other liabilities

 

 

(80,904

)

 

 

(91,099

)

 

 

(84,123

)

Shareholders' equity/partners' capital

 

 

(64,052

)

 

 

(62,596

)

 

 

(73,979

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rents and interest and other income

 

$

12,427

 

 

$

11,372

 

 

$

8,198

 

Depreciation

 

 

(285

)

 

 

(285

)

 

 

(263

)

Operating expenses

 

 

(6,983

)

 

 

(14,162

)

 

 

(4,013

)

Gain on land sales

 

 

-

 

 

 

618

 

 

 

(2,785

)

Interest expense

 

 

(7,144

)

 

 

(7,173

)

 

 

(4,283

)

Loss from continuing operations

 

 

(1,985

)

 

 

(9,630

)

 

 

(3,146

)

Income from discontinued operations

 

 

64

 

 

 

(15

)

 

 

2,691

 

Net loss

 

$

(1,921

)

 

$

(9,645

)

 

$

(455

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Company's proportionate share of loss (1)

 

$

(19

)

 

$

(192

)

 

$

(9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Loss represents continued and discontinued operations