Investment In Real Estate Joint Ventures And Partnerships

6 Months Ended

Jun. 30, 2021

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 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 2021 and 2020. Combined condensed financial information of these ventures (at 100%) is summarized as follows (in thousands):

	June 30,		December 31,
	2021		2020
Combined Condensed Balance Sheets
ASSETS
Property	$	1,098,782	$	1,093,504
Accumulated depreciation		(291,039)		(275,802)
Property, net		807,743		817,702
Other assets, net		79,431		81,285
Total Assets	$	887,174	$	898,987
LIABILITIES AND EQUITY
Debt, net (primarily mortgages payable)	$	191,089	$	192,674
Amounts payable to Weingarten Realty Investors and Affiliates		9,038		9,836
Other liabilities, net		17,846		15,340
Total Liabilities		217,973		217,850
Equity		669,201		681,137
Total Liabilities and Equity	$	887,174	$	898,987

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Combined Condensed Statements of Operations
Revenues, net	$	29,613	$	26,817	$	59,558	$	60,556
Expenses:
Depreciation and amortization		8,416		8,902		16,854		17,664
Interest, net		1,132		2,334		2,756		4,752
Operating		5,438		5,462		11,261		12,573
Real estate taxes, net		3,592		4,215		7,127		8,615
General and administrative		198		233		303		338
Provision for income taxes		16		34		32		70
Total		18,792		21,180		38,333		44,012
Gain on dispositions		13		2,090		61		46,789
Net income	$	10,834	$	7,727	$	21,286	$	63,333

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 $10.5 million and $10.7 million at June 30, 2021 and December 31, 2020, respectively, are generally amortized over the useful lives of the related assets.

We recorded joint venture fee income of $1.3 million and $1.1 million included in Other revenue for the three months ended June 30, 2021 and 2020, respectively, and $2.9 million and $2.7 million for the six months ended June 30, 2021 and 2020, respectively. Additionally, for the three and six months ended June 30, 2021, our joint venture and partnerships have increased revenues by $.3 million and $1.0 million, respectively, due to the realization of net recoveries, of which our share totaled $.1 million and $.2 million, respectively. For the three and six months ended June 30, 2020, our joint venture and partnerships reduced revenues by $5.1 million and $5.9 million, respectively, due primarily to COVID lease related reserves and write-offs, which included $1.7 million and $2.6 million 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 included $.4 million and $.7 million, respectively, for straight-line rent receivables. For additional information, see Note 1.

Effective as of March 31, 2021, a secured variable-rate loan of $170 million was extended to March 31, 2022 under an available one-year extension and has an additional one-year renewal option available.

Subsequent to June 30, 2021, a center in a 20% owned unconsolidated real estate joint venture was sold with gross sales proceeds totaling $25.5 million. 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 2020, we invested an additional $8.7 million in a 90% owned unconsolidated real estate joint venture for a mixed-use new development.

In December 2020, we acquired our partner’s 42.25% interest in a center at an unconsolidated real estate joint venture for approximately $115.2 million. The transaction resulted in the consolidation of the property in our consolidated financial statements.