Investment in Unconsolidated Ventures

At third quarter-end 2013, we had ownership interests generally ranging from 25 to 50 percent in 13 ventures that we account for using the equity method. We have no ventures that are accounted for using the cost method.

Combined summarized balance sheet information for our ventures accounted for using the equity method follows:



	Venture Assets				Venture Borrowings^(a)				Venture Equity						Our Investment
	Third Quarter-End		Year-End		Third Quarter-End		Year-End		Third Quarter-End			Year-End			Third Quarter-End		Year-End
	2013		2012		2013		2012		2013			2012			2013		2012
	(In thousands)
242, LLC ^(b)	$	22,505	$	21,408	$	—	$	810	$	20,394		$	19,576		$	9,342	$	8,903
CJUF III, RH Holdings	33,134		15,970		14,800		1		15,710			13,701			3,529		3,836
CL Ashton Woods ^(c)	16,536		15,701		—		—		15,071			15,044			6,792		5,775
CL Realty	8,049		8,245		—		—		7,844			7,842			3,922		3,921
FMF Peakview	28,772		16,859		9,567		—		16,736			13,331			3,429		2,666
HM Stonewall Estates ^(c)	4,585		5,184		—		104		4,585			5,080			2,246		2,470
LM Land Holdings ^(c)	26,051		21,094		4,937		3,086		19,600			13,128			10,042		6,045
Temco	13,422		13,255		—		—		13,114			13,066			6,557		6,533
Other ventures (5)^(d)	12,510		17,129		30,361		34,357		(32,230		)	(31,275		)	832		1,397
	$	165,564	$	134,845	$	59,665	$	38,358	$	80,824		$	69,493		$	46,691	$	41,546

Combined summarized income statement information for our ventures accounted for using the equity method follows:



	Venture Revenues								Venture Earnings (Loss)												Our Share of Earnings (Loss)
	Third Quarter				First Nine Months				Third Quarter						First Nine Months						Third Quarter						First Nine Months
	2013		2012		2013		2012		2013			2012			2013			2012			2013			2012			2013			2012
	(In thousands)
242, LLC ^(b)	$	37	$	1,072	$	3,168	$	2,925	$	(20	)	$	163		$	817		$	352		$	(10	)	$	93		$	438		$	208
CJUF III, RH Holdings	4		—		7		—		(133		)	—			(357		)	—			(133		)	—			(357		)	—
CL Ashton Woods ^(c)	1,355		740		4,246		2,089		477			197			1,027			458			677			350			1,817			874
CL Realty	445		298		1,246		2,294		350			104			802			840			175			52			401			420
FMF Peakview	200		—		200		—		(98		)	—			(137		)	—			(19		)	—			(27		)	—
HM Stonewall Estates ^(c)	696		526		1,794		1,696		255			146			655			543			100			57			276			216
LM Land Holdings ^(c)	9,387		1,700		14,651		4,970		5,515			340			9,274			1,207			2,344			(16		)	3,998			151
Temco	162		60		437		560		42			(18		)	48			(142		)	21			(9		)	24			(71		)
Other ventures (5)	21		1,646		5,171		4,525		(120		)	(174		)	(642		)	(579		)	(30		)	153			34			374
	$	12,307	$	6,042	$	30,920	$	19,059	$	6,268		$	758		$	11,487		$	2,679		$	3,125		$	680		$	6,604		$	2,172

_____________________


^(a)	Total includes current maturities of $28,034,000 at third quarter-end 2013, of which $27,892,000 is non-recourse to us, and $32,323,000 at year-end 2012, of which $32,083,000 is non-recourse to us.


^(b)	Includes unamortized deferred gains on real estate contributed by us to ventures. We recognize deferred gains as income as real estate is sold to third parties. Deferred gains of $855,000 are reflected as a reduction to our investment in unconsolidated ventures at third quarter-end 2013.

^(c)

We acquired these equity investments from CL Realty in 2012 at estimated fair value. The difference between estimated fair value of the equity investment and our capital account within the respective ventures at closing (basis difference) will be accreted as income or expense over the life of the investment and included in our share of earnings (loss) from the respective ventures. Unrecognized basis difference of $2,359,000 is reflected as a reduction of our investment in unconsolidated ventures at third quarter-end 2013.


^(d)	Our investment in other ventures reflects our ownership interests generally ranging from 25 to 50 percent, excluding venture losses that exceed our investment where we are not obligated to fund those losses. Please read Note 16 — Variable Interest Entities for additional information.

In first nine months 2013, we invested $819,000 in these ventures and received $2,140,000 in distributions, and in first nine months 2012, we invested $1,684,000 in these ventures and received $1,501,000 in distributions. Distributions include both return of investments and distributions of earnings.

We have provided performance bonds and letters of credit on behalf of certain ventures that could be drawn on due to failure to satisfy construction obligations as general contractor or for failure to timely deliver streets and utilities in accordance with local codes and ordinances. At third quarter-end 2013, we have $26,630,000 outstanding, of which $26,577,000 is related to development and construction of a 257-unit multifamily property in Austin estimated to be completed in May 2014.