Investment In Real Estate Joint Ventures And Partnerships

12 Months Ended

Dec. 31, 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% during 2012 and 7.8% to 75% during 2011. Combined condensed financial information of these ventures (at 100%) is summarized as follows (in thousands):

	December 31,
	2012			2011
Combined Condensed Balance Sheets
ASSETS
Property	$	1,631,694		$	2,108,745
Accumulated depreciation	(273,591		)	(296,496		)
Property, net	1,358,103			1,812,249
Other assets, net	161,344			173,130
Total	$	1,519,447		$	1,985,379
LIABILITIES AND SHAREHOLDERS' EQUITY
Debt, net (primarily mortgages payable)	$	468,841		$	556,920
Amounts payable to Weingarten Realty Investors and Affiliates	109,931			170,007
Other liabilities, net	34,157			41,907
Total	612,929			768,834
Accumulated equity	906,518			1,216,545
Total	$	1,519,447		$	1,985,379

	Year Ended December 31,
	2012			2011		2010
Combined Condensed Statements of Operations
Revenues, net	$	195,109		$	205,596	$	193,649
Expenses:
Depreciation and amortization	59,330			67,459		61,726
Interest, net	35,491			37,612		36,270
Operating	34,989			36,253		34,026
Real estate taxes, net	23,899			24,333		24,288
General and administrative	1,106			2,969		3,927
Provision for income taxes	316			343		237
Impairment loss	96,781			28,776		231
Total	251,912			197,745		160,705
Operating (loss) income	$	(56,803	)	$	7,851	$	32,944

Our investment in real estate joint ventures and partnerships, as reported in our Consolidated Balance Sheets, differs from our proportionate share of the entities’ underlying net assets due to basis differences, which arose upon the transfer of assets to the joint ventures. The net positive (negative) basis differences, which totaled $1.6 million and $(7.5) million at December 31, 2012 and 2011, respectively, are generally amortized over the useful lives of the related assets.

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 year ended December 31, 2012, 2011 and 2010, our unconsolidated real estate joint ventures and partnerships recorded an impairment charge of $96.8 million, $28.8 million and $.2 million, respectively, associated primarily with various properties that are being either marketed for sale, have been sold or with shorter holding periods of finite life joint ventures where the joint ventures’ ability to recover the carrying cost of the property may be limited by the term of the venture life.

Fees earned by us for the management of these real estate joint ventures and partnerships totaled $6.1 million in 2012, $6.0 million in 2011 and $5.8 million in 2010.

In August 2012, we acquired our 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.

During 2012, our interest in 19 industrial properties held in unconsolidated joint ventures, in which we are a partner, were sold through either a direct sale by the joint venture or the sale of our interest. Gross sales proceeds, including the assumption of debt, from these transactions totaled $210.4 million. Subsequent to December 31, 2012, the final two properties in an unconsolidated joint venture were sold, and the joint venture will be liquidated.

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.

In April 2011, we acquired a 50%-owned unconsolidated real estate joint venture interest in three retail properties 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.