Investment In Real Estate Joint Ventures And Partnerships

9 Months Ended

Sep. 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):

	September 30,		December 31,
	2020		2019
Combined Condensed Balance Sheets
ASSETS
Property	$	1,224,459	$	1,378,328
Accumulated depreciation		(295,353)		(331,856)
Property, net		929,106		1,046,472
Other assets, net		117,886		108,366
Total Assets	$	1,046,992	$	1,154,838
LIABILITIES AND EQUITY
Debt, net (primarily mortgages payable)	$	262,699	$	264,782
Amounts payable to Weingarten Realty Investors and Affiliates		9,267		11,972
Other liabilities, net		25,473		25,498
Total Liabilities		297,439		302,252
Equity		749,553		852,586
Total Liabilities and Equity	$	1,046,992	$	1,154,838

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Combined Condensed Statements of Operations
Revenues, net	$	32,073	$	33,853	$	92,629	$	99,245
Expenses:
Depreciation and amortization		8,803		7,914		26,467		23,409
Interest, net		2,328		2,336		7,080		7,286
Operating		5,579		6,035		18,152		17,820
Real estate taxes, net		4,333		4,891		12,948		13,948
General and administrative		92		110		430		422
Provision for income taxes		30		34		100		103
Total		21,165		21,320		65,177		62,988
Gain on dispositions		178		—		46,967		2,009
Net income	$	11,086	$	12,533	$	74,419	$	38,266

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 September 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 $1.3 million and $1.9 million included in Other revenue for the three months ended September 30, 2020 and 2019, respectively, and $4.0 million and $4.8 million for the nine months ended September 30, 2020 and 2019, respectively. Additionally, as a result of COVID-19, for the nine months ended September 30, 2020, our joint venture and partnerships have reduced revenues by $5.9 million due to lease related reserves and write-offs, which includes $2.6 million for straight-line rent receivables. Of these amounts for the nine months ended September 30, 2020, our share totaled $2.0 million, which includes $.7 million 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 $23.5 million. Also during the nine months ended September 30, 2020, we invested an additional $8.3 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.