INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES

3 Months Ended

Mar. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES

NOTE 6. 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% ownership 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 an unconsolidated joint venture.

Investments accounted for via the equity method consists of the following, except for VAA which is discussed in Note 2.

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):

	March 31,
	2019			2018
ARL
Real estate, net of accumulated depreciation	$	549		$	5,193
Notes receivable		41,992			45,414
Other assets		65,823			58,253
Notes payable		(9,444	)		(6,266	)
Other liabilities		(30,902	)		(32,539	)
Shareholders’ equity/partners capital		(68,018	)		(70,055	)

		For the Three Months Ended March 31,
		2019			2018
Rents, interest and other income	$	1,654		$	1,629
Operating expenses		(482	)		(417	)
Interest expense		(2,009	)		(1,631	)
Loss from continuing operations	$	(837	)	$	(419	)
Net loss	$	(837	)	$	(419	)
Company’s proportionate share of loss	$	(8	)	$	(4	)