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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES
6 Months Ended
Jun. 30, 2018
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 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, 2018     June 30, 2017  
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 June 30   2018     2017  
Real estate, net of accumulated depreciation   $ 5,193     $ 14,452  
Notes receivable     43,045       28,005  
Other assets     59,510       67,847  
Notes payable     (6,184 )     (6,821 )
Other liabilities     (30,927 )     (38,623 )
Shareholders’ equity     (70,637 )     (64,860 )

 

For the Six Months Ended June 30     2018       2017  
Rents and interest and other income   $ 3,388     $ 3,282  
Depreciation           (95 )
Operating expenses     (1,459 )     (2,460 )
Interest expense     (3,362 )     (3,170 )
Income (loss) from continuing operations     (1,433 )     (2,443 )
Income (loss) from discontinued operations            
Net loss   $ (1,433 )   $ (2,443 )
                 
Company’s proportionate share of net loss   $ (13 )   $ (22 )