XML 43 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Investments in Partnerships
 3 Months Ended
Mar. 31, 2014
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Partnerships
INVESTMENTS IN PARTNERSHIPS

The following table presents summarized financial information of the equity investments in our unconsolidated partnerships as of March 31, 2014 and December 31, 2013:
 
(in thousands of dollars)
As of March 31, 2014
 
As of December 31, 2013
ASSETS:
 
 
 
Investments in real estate, at cost:
 
 
 
Operating properties
$
419,245

 
$
416,964

Construction in progress
2,428

 
2,298

Total investments in real estate
421,673

 
419,262

Accumulated depreciation
(172,714
)
 
(169,369
)
Net investments in real estate
248,959

 
249,893

Cash and cash equivalents
10,496

 
15,327

Deferred costs and other assets, net
18,067

 
19,474

Total assets
277,522

 
284,694

LIABILITIES AND PARTNERS’ DEFICIT:
 
 
 
Mortgage loans payable
397,000

 
398,717

Other liabilities
7,706

 
9,667

Total liabilities
404,706

 
408,384

Net deficit
(127,184
)
 
(123,690
)
Partners’ share
(68,057
)
 
(66,325
)
PREIT’s share
(59,127
)
 
(57,365
)
Excess investment (1)
8,803

 
8,837

Net investments and advances
$
(50,324
)
 
$
(48,528
)
 
 
 
 
Investment in partnerships, at equity
$
15,090

 
$
15,963

Distributions in excess of partnership investments
(65,414
)
 
(64,491
)
Net investments and advances
$
(50,324
)
 
$
(48,528
)
_________________________
(1) 
Excess investment represents the unamortized difference between our investment and our share of the equity in the underlying net investment in the partnerships. The excess investment is amortized over the life of the properties, and the amortization is included in “Equity in income of partnerships.”

We record distributions from our equity investments as cash from operating activities up to an amount equal to the equity in income of partnerships. Amounts in excess of our share of the income in the equity investments are treated as a return of partnership capital and recorded as cash from investing activities.

The following table summarizes our share of equity in income of partnerships for the three months ended March 31, 2014 and 2013:
 
 
Three Months Ended 
 March 31,
(in thousands of dollars)
2014
 
2013
Real estate revenue
$
21,175

 
$
20,194

Expenses:
 
 
 
Operating expenses
(7,100
)
 
(5,969
)
Interest expense
(5,475
)
 
(5,549
)
Depreciation and amortization
(3,649
)
 
(3,567
)
Total expenses
(16,224
)
 
(15,085
)
Net income
4,951

 
5,109

Less: Partners’ share
(2,473
)
 
(2,549
)
PREIT’s share
2,478

 
2,560

Amortization of excess investment
(76
)
 
(108
)
Equity in income of partnerships
$
2,402

 
$
2,452



We have a 50% partnership interest in Lehigh Valley Associates LP, the owner of the substantial majority of Lehigh Valley Mall, which is a significant unconsolidated subsidiary, and that is included in the amounts above. Summarized financial information as of or for the three months ended March 31, 2014 and 2013 for this entity, which is accounted for by the equity method, is as follows:

 
 
As of or for the
Three Months Ended
(in thousands of dollars)
 
March 31, 2014
 
March 31, 2013
Total assets
 
$
51,016

 
$
59,690

Mortgage loan payable
 
133,017

 
135,073

Revenue
 
9,034

 
8,716

Property operating expenses
 
2,764

 
2,213

Interest expense
 
1,971

 
2,001

Net income
 
3,207

 
3,663

PREIT's share of equity in income of partnership
 
1,604

 
1,832