INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES

3 Months Ended

Mar. 31, 2017

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
	March 31, 2017			March 31, 2016
American Realty Investors, Inc.(1)		0.90	%		0.90	%

⁽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 0.90% 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 March 31,	2017			2016
Real estate, net of accumulated depreciation	$	14,495		$	14,619
Notes receivable		44,840			48,681
Other assets		127,106			127,357
Notes payable		(7,742	)		(24,015	)
Other liabilities		(112,388	)		(98,687	)
Shareholders’ equity		(66,311	)		(67,955	)
For the Three Months Ended March 31,		2017			2016
Rents and interest and other income	$	1,713		$	1,778
Depreciation		(45	)		(40	)
Operating expenses		(980	)		(881	)
Interest expense		(1,606	)		(1,048	)
Net loss	$	(918	)	$	(191	)
Company’s proportionate share of loss	$	(8	)	$	(2	)