Investment In Real Estate Joint Ventures And Partnerships

3 Months Ended

Mar. 31, 2013

Equity Method Investments and Joint Ventures [Abstract]

Investment In Real Estate Joint Ventures And Partnerships

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 range from 10% to 75% for the 2013 and 2012 periods presented. Combined condensed financial information of these ventures (at 100%) is summarized as follows (in thousands):

	March 31, 2013			December 31, 2012
Combined Condensed Balance Sheets
ASSETS
Property	$	1,568,267		$	1,631,694
Accumulated depreciation	(274,214		)	(273,591		)
Property, net	1,294,053			1,358,103
Other assets, net	154,599			161,344
Total	$	1,448,652		$	1,519,447
LIABILITIES AND SHAREHOLDERS' EQUITY
Debt, net (primarily mortgages payable)	$	466,149		$	468,841
Amounts payable to Weingarten Realty Investors and Affiliates	106,311			109,931
Other liabilities, net	32,762			34,157
Total	605,222			612,929
Accumulated equity	843,430			906,518
Total	$	1,448,652		$	1,519,447

	Three Months Ended March 31,
	2013		2012
Combined Condensed Statements of Operations
Revenues, net	$	42,161	$	49,847
Expenses:
Depreciation and amortization	12,021		16,136
Interest, net	7,545		9,086
Operating	6,154		8,625
Real estate taxes, net	4,583		6,238
General and administrative	286		361
Provision for income taxes	62		73
Impairment loss	1,815		—
Total	32,466		40,519
Operating income	$	9,695	$	9,328

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 $6.2 million and $1.6 million at March 31, 2013 and December 31, 2012, respectively, are generally amortized over the useful lives of the related assets.

Our real estate joint ventures and partnerships have determined that the carrying amount of certain properties was not recoverable and that the properties should be written down to fair value. For the three months ended March 31, 2013, our unconsolidated real estate joint ventures and partnerships recorded an impairment charge of $1.8 million on various properties that have been marketed and sold during the period. There was no impairment recorded for the three months ended March 31, 2012.

Fees earned by us for the management of these real estate joint ventures and partnerships totaled $1.4 million and $1.7 million for the three months ended March 31, 2013 and 2012, respectively.

During 2013, the final two industrial properties in an unconsolidated joint venture were sold. This joint venture was liquidated resulting in an $11.5 million gain on our investment. Also, two shopping centers were sold, and the gross sales proceeds from the disposition of these four properties totaled $11.7 million.

In August 2012, we acquired a partner's 79.6% interest in an unconsolidated tenancy-in-common arrangement for approximately $29.6 million that we had previously accounted for under the equity method and included the assumption of debt of $24.5 million. This transaction resulted in the consolidation of the property in our consolidated financial statements.

During 2012, our interest in 19 industrial properties held in unconsolidated joint ventures, in which we are a partner, were sold through either a direct sale by the joint venture or the sale of our interest. Gross sales proceeds, including the assumption of debt, from these transactions totaled $210.4 million.

In February 2012, we sold a 47.8% unconsolidated joint venture interest in a Colorado development project to our partner with gross sales proceeds totaling $29.1 million, which includes the assumption of our share of debt.