Investment In Real Estate Joint Ventures And Partnerships

3 Months Ended

Mar. 31, 2014

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 2014 and 2013 periods presented. Combined condensed financial information of these ventures (at 100%) is summarized as follows (in thousands):

	March 31, 2014			December 31, 2013
Combined Condensed Balance Sheets
ASSETS
Property	$	1,403,593		$	1,401,982
Accumulated depreciation	(269,827		)	(261,454		)
Property, net	1,133,766			1,140,528
Other assets, net	139,814			142,638
Total	$	1,273,580		$	1,283,166
LIABILITIES AND EQUITY
Debt, net (primarily mortgages payable)	$	450,693		$	453,390
Amounts payable to Weingarten Realty Investors and Affiliates	29,314			30,214
Other liabilities, net	26,227			29,711
Total	506,234			513,315
Equity	767,346			769,851
Total	$	1,273,580		$	1,283,166

	Three Months Ended March 31,
	2014		2013
Combined Condensed Statements of Operations
Revenues, net	$	37,768	$	42,161
Expenses:
Depreciation and amortization	9,917		12,021
Interest, net	5,912		7,545
Operating	6,816		6,154
Real estate taxes, net	4,880		4,583
General and administrative	106		286
Provision for income taxes	67		62
Impairment loss	—		1,815
Total	27,698		32,466
Operating income	$	10,070	$	9,695

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 $6.1 million at March 31, 2014 and December 31, 2013, respectively, are generally amortized over the useful lives of the related assets.

Our real estate joint ventures and partnerships have determined from time to time that the carrying amount of certain properties was not recoverable and that the properties should be written down to fair value. There was no impairment charge for the threemonths ended March 31, 2014. For the three months ended March 31, 2013, our unconsolidated real estate joint ventures and partnerships recorded an impairment charge of $1.8 million.

Fees earned by us for the management of these real estate joint ventures and partnerships totaled $1.2 million and $1.4 million for the three months ended March 31, 2014 and 2013, respectively.

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.