INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES

12 Months Ended

Dec. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

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,
	2016			2015			2014
American Realty Investors, Inc. (1)		0.90	%		0.90	%		1.00	%

⁽¹⁾ Unconsolidated investment in parent company

Our interest in the common stock of ARL in the amount of 0.90% 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 following is a summary of the financial position and results of operations of ARL (dollars in thousands):

	For the Twelve Months Ended December 31,
Unconsolidated Subsidiaries	2016			2015			2014
Real estate, net of accumulated depreciation	$	14,504		$	14,232		$	15,460
Notes Receivable		47,257			50,692			50,909
Other assets		127,001			127,497			128,635
Notes payable		(9,485	)		(25,233	)		(50,048	)
Other liabilities		(111,707	)		(98,440	)		(80,904	)
Shareholders’ equity/partners’ capital		(67,570	)		(68,748	)		(64,052	)
Rents and interest and other income	$	7,251		$	11,990		$	12,427
Depreciation		(175	)		(192	)		(285	)
Operating expenses		(3,633	)		(4,414	)		(6,983	)
Gain on land sales		—			2,737			—
Interest expense		(6,274	)		(5,936	)		(7,144	)
Income (loss) from continuing operations		(2,831	)		4,185			(1,985	)
Income (loss) from discontinued operations		—			1			64
Net income (loss)	$	(2,831	)	$	4,186		$	(1,921	)
Company’s proportionate share of income (loss) (1)	$	(25	)	$	38		$	(19	)

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