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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES
 6 Months Ended
Jun. 30, 2015
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES

NOTE 4. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES

 

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

 

Investments in unconsolidated joint ventures and investees consist of the following:

 

    Percentage ownership as of
    June 30, 2015   June 30, 2014
American Realty Investors, Inc.(1)     1.00 %     1.99 %
                   

(1) Unconsolidated investment in parent company owning 140,000 shares of ARL Common Stock

 

Our interest in the common stock of ARL in the amount of 1.00% is accounted for under the equity method because we exercise significant influence over the operations and financial activities. Accordingly, the investments are carried at cost, adjusted for the Company’s proportionate share of earnings or losses.

 

The following is a summary of the financial position and results of operations from our unconsolidated parent (dollars in thousands):

 

As of June 30,   2015   2014
Real estate, net of accumulated depreciation   $ 14,285     $ 15,149  
Notes receivable     50,519       68,940  
Other assets     127,217       128,581  
Notes payable     (28,193 )     (52,369 )
Other liabilities     (94,201 )     (100,149 )
Shareholders' equity     (69,627 )     (60,152 )
                 
For the Six Months Ended June 30,     2015       2014  
Rents and interest and other income   $ 6,359     $ 5,894  
Depreciation     (78 )     (138 )
Operating expenses     (1,810 )     (3,093 )
Interest expense     (1,448 )     (3,447 )
Income (loss) from continuing operations     3,023       (784 )
Income (loss) from discontinued operations     —       —  
Net income (loss)   $ 3,023     $ (784 )
                 
Company's proportionate share of income (loss)   $ 30     $ (16)