Investment In Real Estate Joint Ventures And Partnerships

6 Months Ended

Jun. 30, 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 had 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):

	June 30,		December 31,
	2020		2019
Combined Condensed Balance Sheets
ASSETS
Property	$	1,221,547	$	1,378,328
Accumulated depreciation		(287,561)		(331,856)
Property, net		933,986		1,046,472
Other assets, net		107,229		108,366
Total Assets	$	1,041,215	$	1,154,838
LIABILITIES AND EQUITY
Debt, net (primarily mortgages payable)	$	263,404	$	264,782
Amounts payable to Weingarten Realty Investors and Affiliates		9,511		11,972
Other liabilities, net		24,853		25,498
Total Liabilities		297,768		302,252
Equity		743,447		852,586
Total Liabilities and Equity	$	1,041,215	$	1,154,838

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Combined Condensed Statements of Operations
Revenues, net	$	26,817	$	32,877	$	60,556	$	65,392
Expenses:
Depreciation and amortization		8,902		7,646		17,664		15,495
Interest, net		2,334		2,491		4,752		4,950
Operating		5,462		5,685		12,573		11,785
Real estate taxes, net		4,215		4,522		8,615		9,057
General and administrative		233		243		338		312
Provision for income taxes		34		36		70		69
Total		21,180		20,623		44,012		41,668
Gain on dispositions		2,090		1,474		46,789		2,009
Net income	$	7,727	$	13,728	$	63,333	$	25,733

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 $11.1 million and $9.0 million at June 30, 2020 and December 31, 2019, respectively, are generally amortized over the useful lives of the related assets.

We recorded joint venture fee income of $1.1 million and $1.4 million included in Other revenue for the three months ended June 30, 2020 and 2019, respectively, and $2.7 million and $2.9 million for the six months ended June 30, 2020 and 2019, respectively. Additionally, as a result of COVID-19, for the three and six months ended June 30, 2020, our joint venture and partnerships have reduced revenues by $5.1 million and $5.9 million, respectively, due to lease related reserves and write-offs, which includes $1.7 million and $2.6 million, respectively, for straight-line rent receivables. Of these amounts for the three and six months ended June 30, 2020, our share totaled $1.7 million and $2.0 million, respectively, which includes $.4 million and $.7 million, respectively, for straight-line rent receivables. For additional information, see Note 1.

During 2020, we sold two centers and our interest in two centers, ranging from 20% to 50%, at an aggregate gross value of approximately $148.3 million, of which our share of the gain, included in equity earnings in real estate joint ventures and partnerships, totaled $23.4 million. Also during the six months ended June 30, 2020, we invested an additional $4.4 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.