INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES

9 Months Ended

Sep. 30, 2016

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
	September 30, 2016			September 30, 2015
American Realty Investors, Inc.(1)		0.90	%		1.00	%

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

Our 0.90% interest in the common stock of ARL 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 September 30,		2016			2015
Real estate, net of accumulated depreciation	$	14,550		$	14,255
Notes receivable		46,371			49,614
Other assets		126,848			127,300
Notes payable		(10,426	)		(27,315	)
Other liabilities		(111,789	)		(94,479	)
Shareholders’ equity		(65,554	)		(69,375	)

For the Nine Months Ended September 30,	2016			2015
Rents and interest and other income	$	5,586		$	10,121
Depreciation		(113	)		(159	)
Operating expenses		(2,897	)		(3,727	)
Gain on land sales		—			2,737
Interest expense		(4,725	)		(4,502	)
Income (loss) from continuing operations		(2,149	)		4,470
Income (loss) from discontinued operations		—			1
Net income (loss)	$	(2,149	)	$	4,471
Company’s proportionate share of income (loss) (1)	$	(19	)	$	40

⁽¹⁾ Income (loss) represents continued and discontinued operations