Investment In Real Estate Joint Ventures And Partnerships

9 Months Ended

Sep. 30, 2011

Investment In Real Estate Joint Ventures And Partnerships [Abstract]

Investment In Real Estate Joint Ventures And Partnerships

Note 13. 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 7.8% to 75%. Combined condensed financial information of these ventures (at 100%) is summarized as follows (in thousands):

	September 30, 2011			December 31, 2010
Combined Condensed Balance Sheets
Property	$	2,102,657		$	2,142,524
Accumulated depreciation		(283,705	)		(247,996	)
Property, net		1,818,952			1,894,528
Other assets, net		182,047			168,091
Total	$	2,000,999		$	2,062,619
Debt, net (primarily mortgages payable)	$	559,838		$	552,552
Amounts payable to Weingarten Realty Investors and affiliates		170,969			202,092
Other liabilities, net		51,679			45,331
Total		782,486			799,975
Accumulated equity		1,218,513			1,262,644
Total	$	2,000,999		$	2,062,619

	Three Months Ended September 30,					Nine Months Ended September 30,
	2011			2010		2011			2010
Combined Condensed Statements of Operations
Revenues, net	$	52,501		$	48,002	$	154,693		$	142,609
Expenses:
Depreciation and amortization		16,507			15,087		51,051			45,730
Interest, net		9,557			8,613		28,394			26,754
Operating		8,961			8,296		26,791			24,441
Real estate taxes, net		6,001			5,529		18,607			18,008
General and administrative		865			974		2,834			2,871
Provision for income taxes		85			53		286			198
Impairment loss		26,718			-		28,776			231
Total		68,694			38,552		156,739			118,233
Gain on land and merchant development sales		-			184		-			184
Loss on sale of property		-			-		(21	)		(3	)
Net (loss) income	$	(16,193	)	$	9,634	$	(2,067	)	$	24,557

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 basis differences, which totaled $7.2 million and $8.8 million at September 30, 2011 and December 31, 2010, 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 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, associated with 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. For the nine months ended September 30, 2010, $.2 million was recorded, and no such activity was present during the three months ended September 30, 2010.

Fees earned by us for the management of these real estate joint ventures and partnerships totaled $1.5 million and $1.4 million for the three months ended September 30, 2011 and 2010, respectively, and $4.6 million and $4.3 million for the nine months ended September 30, 2011 and 2010, respectively.

During 2011, an unconsolidated real estate joint venture sold two industrial buildings with gross sales proceeds aggregating $7.6 million.

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.

Effective April 1, 2010, we assumed control of two 50%-owned unconsolidated real estate joint ventures related to a development project in Sheridan, Colorado that we had previously accounted for under the equity method. This transaction resulted in the consolidation of the joint ventures in our consolidated financial statements.

During 2010, activity in our unconsolidated real estate joint ventures consisted of the sale of two retail buildings and two land parcels. In addition, we sold an unconsolidated real estate joint venture interest. Total aggregate gross sales proceeds for these transactions totaled $8.3 million.

Also, in the fourth quarter of 2010, we acquired interests in two unconsolidated real estate joint ventures for approximately $35.8 million.