INVESTMENT IN UNCONSOLIDATED JOINT VENTURES AND INVESTEES

6 Months Ended

Jun. 30, 2020

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):

	For the Period Ended June 30,
	2020			2019
ARL
Real estate, net of accumulated depreciation	$	—		$	549
Notes receivable		31,925			42,719
Other assets		69,862			66,407
Notes payable		(6,719	)		(5,070	)
Other liabilities		(27,473	)		(33,855	)
Shareholders’ equity/partners capital		(67,595	)		(70,750	)

	For the Six Months Ended June 30,
	2020			2019
Rents, interest and other income	$	4,553		$	7,370
Operating expenses		(923	)		(1,479	)
Interest expense		(2,965	)		(3,771	)
Income from operations	$	665		$	2,120
Net  Income	$	665		$	2,120
Company’s proportionate share of loss	$	6		$	19