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



	December 31,
	2013			2012
Combined Condensed Balance Sheets

ASSETS
Property	$	1,401,982		$	1,631,694
Accumulated depreciation	(261,454		)	(273,591		)
Property, net	1,140,528			1,358,103
Other assets, net	142,638			161,344
Total	$	1,283,166		$	1,519,447

LIABILITIES AND EQUITY
Debt, net (primarily mortgages payable)	$	453,390		$	468,841
Amounts payable to Weingarten Realty Investors and Affiliates	30,214			109,931
Other liabilities, net	29,711			34,157
Total	513,315			612,929
Equity	769,851			906,518
Total	$	1,283,166		$	1,519,447



	Year Ended December 31,
	2013		2012			2011
Combined Condensed Statements of Operations
Revenues, net	$	165,365	$	195,109		$	205,596
Expenses:
Depreciation and amortization	45,701		59,330			67,459
Interest, net	28,787		35,491			37,612
Operating	28,929		34,989			36,253
Real estate taxes, net	18,929		23,899			24,333
General and administrative	934		1,106			2,969
Provision for income taxes	278		316			343
Impairment loss	1,887		96,781			28,776
Total	125,445		251,912			197,745
Operating income (loss)	$	39,920	$	(56,803	)	$	7,851

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 basis differences, which totaled $6.1 million and $1.6 million at December 31, 2013 and 2012, 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, 2013, 2012 and 2011, our unconsolidated real estate joint ventures and partnerships recorded an impairment charge of $1.9 million, $96.8 million and $28.8 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 $5.0 million in 2013, $6.1 million in 2012 and $6.0 million in 2011.

During 2013, the final two industrial properties in an unconsolidated real estate joint venture were sold. This joint venture was liquidated resulting in an $11.5 million gain on our investment. Also, three shopping centers were sold, and our gross sales proceeds from the disposition of these five properties totaled $35.5 million, of which our share of the gain totaled $16.0 million. Furthermore, we sold our 10% interest in two unconsolidated tenancy-in-common arrangements and two unconsolidated real estate joint ventures that we previously accounted for under the equity method, for approximately $15.7 million, resulting in a gain of $1.9 million.

During 2013, a 51% owned unconsolidated real estate joint venture acquired real estate assets of approximately $41.2 million. We also acquired our partner’s 50% unconsolidated real estate joint venture interest in a California 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 (see Note 23 for additional information).

During 2012, our interest in 19 industrial properties held in unconsolidated real estate 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. Also, we sold a 47.8% unconsolidated real estate 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.

During 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.