Investment In Real Estate Joint Ventures And Partnerships

9 Months Ended

Sep. 30, 2012

Equity Method Investments and Joint Ventures [Abstract]

Investment In Real Estate Joint Ventures And Partnerships

Investment in Real Estate Joint Ventures and Partnerships

We own interests in real estate joint ventures or limited partnerships and have tenancy-in-common interests in which we exercise significant influence, but do not have financial and operating control. We account for these investments using the equity method, and our interests range from 10% to 75% for the 2012 periods presented and 7.8% to 75% for the 2011 periods presented. Combined condensed financial information of these ventures (at 100%) is summarized as follows (in thousands):

	September 30, 2012			December 31, 2011
Combined Condensed Balance Sheets
Assets
Property	$	1,769,303		$	2,108,745
Accumulated depreciation	(295,670		)	(296,496		)
Property, net	1,473,633			1,812,249
Other assets, net	166,697			173,130
Total Assets	$	1,640,330		$	1,985,379
Liabilities and Equity
Debt, net (primarily mortgages payable)	$	515,978		$	556,920
Amounts payable to Weingarten Realty Investors and affiliates	109,715			170,007
Other liabilities, net	43,638			41,907
Total Liabilities	669,331			768,834
Accumulated equity	970,999			1,216,545
Total Liabilities and Equity	$	1,640,330		$	1,985,379

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012		2011			2012			2011
Combined Condensed Statements of Operations
Revenues, net	$	49,726	$	52,501		$	149,599		$	154,693
Expenses:
Depreciation and amortization	15,071		16,507			46,688			51,051
Interest, net	8,956		9,557			27,003			28,394
Operating	9,069		8,961			26,265			26,791
Real estate taxes, net	6,322		6,001			18,719			18,607
General and administrative	420		865			1,006			2,834
Provision for income taxes	81		85			249			286
Impairment loss	283		26,718			96,781			28,776
Total	40,202		68,694			216,711			156,739
Gain (loss) on sale of property	2,177		—			2,423			(21		)
Net income (loss)	$	11,701	$	(16,193	)	$	(64,689	)	$	(2,067	)

Our investment in real estate joint ventures and partnerships, as reported in our Condensed Consolidated Balance Sheets, differs from our proportionate share of the entities' underlying net assets due to basis differences, which arose upon the transfer of certain assets to the joint ventures. The net basis differences, which totaled $2.7 million and $7.5 million at September 30, 2012 and December 31, 2011, respectively, are generally amortized over the useful lives of the related assets.

During 2012, our real estate joint ventures and partnerships determined that the carrying amount of certain properties was not recoverable and that the properties should be written down to fair value. For the three and nine months ended September 30, 2012, our unconsolidated real estate joint ventures and partnerships recorded an impairment charge of $0.3 million and $96.8 million, respectively, on various properties that are either marketed for sale or have been sold. For the three and nine months ended September 30, 2011, our unconsolidated real estate joint ventures and partnerships recorded an impairment charge of $26.7 million and $28.8 million, respectively.

Fees earned by us for the management of these real estate joint ventures and partnerships totaled $1.5 million for both the three months ended September 30, 2012 and 2011, and $4.8 million and $4.6 million for the nine months ended September 30, 2012 and 2011, respectively.

In August 2012, we acquired a partner's 79.6% interest in an unconsolidated tenancy-in-common arrangement for approximately $29.6 million that we had previously accounted for under the equity method and includes the assumption of debt of $24.5 million. This transaction resulted in the consolidation of the property in our consolidated financial statements.

In February 2012, we sold a 47.8% unconsolidated joint venture interest in a Colorado development project to our partner with gross sales proceeds totaling $29.1 million, which includes the assumption of our share of debt, generating a gain of $3.5 million.

In April 2011, we acquired a 50%-owned unconsolidated real estate joint venture interest in three shopping centers for approximately $11.6 million. We also acquired our partner’s 50% unconsolidated joint venture interest in a Florida development property that we had previously accounted for under the equity method. This transaction resulted in the consolidation of the property in our consolidated financial statements.