Investment In Real Estate Joint Ventures And Partnerships

6 Months Ended

Jun. 30, 2013

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 20% to 75% for the 2013 periods presented and 10% to 75% for the 2012 periods presented. Combined condensed financial information of these ventures (at 100%) is summarized as follows (in thousands):

	June 30, 2013			December 31, 2012
Combined Condensed Balance Sheets
ASSETS
Property	$	1,503,550		$	1,631,694
Accumulated depreciation	(274,448		)	(273,591		)
Property, net	1,229,102			1,358,103
Other assets, net	155,258			161,344
Total	$	1,384,360		$	1,519,447
LIABILITIES AND SHAREHOLDERS' EQUITY
Debt, net (primarily mortgages payable)	$	462,859		$	468,841
Amounts payable to Weingarten Realty Investors and Affiliates	102,140			109,931
Other liabilities, net	33,267			34,157
Total	598,266			612,929
Accumulated equity	786,094			906,518
Total	$	1,384,360		$	1,519,447

	Three Months Ended June 30,					Six Months Ended June 30,
	2013		2012			2013		2012
Combined Condensed Statements of Operations
Revenues, net	$	41,099	$	50,026		$	83,260	$	99,873
Expenses:
Depreciation and amortization	11,558		15,481			23,579		31,617
Interest, net	7,415		8,961			14,960		18,047
Operating	7,407		8,571			13,561		17,196
Real estate taxes, net	5,013		6,159			9,596		12,397
General and administrative	164		225			450		586
Provision for income taxes	86		95			148		168
Impairment loss	13		96,498			1,828		96,498
Total	31,656		135,990			64,122		176,509
Operating income (loss)	$	9,443	$	(85,964	)	$	19,138	$	(76,636	)

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 assets to the joint ventures. The net positive basis differences, which totaled $6.0 million and $1.6 million at June 30, 2013 and December 31, 2012, respectively, are generally amortized over the useful lives of the related assets.

Our real estate joint ventures and partnerships have determined that the carrying amount of certain properties was not recoverable and that the properties should be written down to fair value. For the threeand six months ended June 30, 2013, our unconsolidated real estate joint ventures and partnerships recorded an impairment charge of $13.0 thousandand $1.8 million, respectively, on various properties that have been marketed and sold during the period. There was $96.5 million of impairment recorded for the three and six months ended June 30, 2012.

Fees earned by us for the management of these real estate joint ventures and partnerships totaled $1.4 million and $1.6 million for the three months ended June 30, 2013 and 2012, respectively, and $2.8 million and $3.3 million for the six months ended June 30, 2013 and 2012, respectively.

During 2013, the final two industrial properties in an unconsolidated joint venture were sold. This joint venture was liquidated resulting in an $11.5 million gain on our investment. Also, two shopping centers were sold, and the gross sales proceeds from the disposition of these four properties totaled $11.7 million. Furthermore, we sold our 10% interest in two unconsolidated tenancy-in-common arrangements for approximately $8.9 million that we previously accounted for under the equity method.

During 2013, we acquired a 51% unconsolidated real estate joint venture interest in a shopping center for approximately $16.5 million.

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 included 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.

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.