Investment In Real Estate Joint Ventures And Partnerships

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Investment In Real Estate Joint Ventures And Partnerships

Note 4. 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 ranged for the periods presented from 20% to 90% in both 2020 and 2019. Combined condensed financial information of these ventures (at 100%) is summarized as follows (in thousands):

	March 31,		December 31,
	2020		2019
Combined Condensed Balance Sheets
ASSETS
Property	$	1,220,903	$	1,378,328
Accumulated depreciation		(279,956)		(331,856)
Property, net		940,947		1,046,472
Other assets, net		98,576		108,366
Total Assets	$	1,039,523	$	1,154,838
LIABILITIES AND EQUITY
Debt, net (primarily mortgages payable)	$	264,098	$	264,782
Amounts payable to Weingarten Realty Investors and Affiliates		10,495		11,972
Other liabilities, net		21,980		25,498
Total Liabilities		296,573		302,252
Equity		742,950		852,586
Total Liabilities and Equity	$	1,039,523	$	1,154,838

	Three Months Ended
	March 31,
	2020		2019
Combined Condensed Statements of Operations
Revenues, net	$	33,739	$	32,515
Expenses:
Depreciation and amortization		8,762		7,849
Interest, net		2,418		2,459
Operating		7,111		6,100
Real estate taxes, net		4,400		4,535
General and administrative		105		69
Provision for income taxes		36		33
Total		22,832		21,045
Gain on dispositions		44,699		535
Net income	$	55,606	$	12,005

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 $10.8 million and $9.0 million at March 31, 2020 and December 31, 2019, respectively, are generally amortized over the useful lives of the related assets.

We recorded joint venture fee income of $1.6 million and $1.5 million included in Other revenue for the three months ended March 31, 2020 and 2019, respectively.

During 2020, we sold one center and our interest in two centers, ranging from 20% to 50%, at an aggregate gross value of approximately $144 million, of which our share of the gain, included in real estate joint ventures and partnerships, totaled $22.4 million. Also during the three months ended March 31, 2020, we invested an additional $3.2 million in a 90% owned unconsolidated real estate joint venture for a mixed-use new development.

During 2019, a parcel of land was sold with gross sales proceeds of approximately $2.3 million, of which our share of the gain, included in equity earnings in real estate joint ventures and partnerships, totaled $1.1 million. In July 2019, a 51% owned unconsolidated real estate joint venture acquired a center with a gross purchase price of $52.6 million. Also during 2019, we invested an additional $47.6 million in a 90% owned unconsolidated real estate joint venture for a mixed-use new development.