Investments in Partnerships (Tables)

6 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Summary of Equity Investments

The following table presents summarized financial information of the equity investments in our unconsolidated partnerships as of June 30, 2015 and December 31, 2014:

(in thousands of dollars)	As of June 30, 2015			As of December 31, 2014
ASSETS:
Investments in real estate, at cost:
Operating properties	$	670,634		$	654,024
Construction in progress	86,569			41,919
Total investments in real estate	757,203			695,943
Accumulated depreciation	(193,353		)	(190,100		)
Net investments in real estate	563,850			505,843
Cash and cash equivalents	24,085			15,229
Deferred costs and other assets, net	40,625			37,274
Total assets	628,560			558,346
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable	419,599			383,190
Other liabilities	36,666			34,314
Total liabilities	456,265			417,504
Net investment	172,295			140,842
Partners’ share	89,685			74,663
PREIT’s share	82,610			66,179
Excess investment (1)	7,839			8,747
Net investments and advances	$	90,449		$	74,926
Investment in partnerships, at equity	$	155,129		$	140,882
Distributions in excess of partnership investments	(64,680		)	(65,956		)
Net investments and advances	$	90,449		$	74,926

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⁽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.”

Summary of Share of Equity in Income of Partnerships

The following table summarizes our share of equity in income of partnerships for the three and six months ended June 30, 2015 and 2014:

	Three Months Ended   June 30,						Six Months Ended   June 30,
(in thousands of dollars)	2015			2014			2015			2014
Real estate revenue	$	24,356		$	20,331		$	50,853		$	41,507
Operating expenses:
Property operating expenses	(9,290		)	(5,749		)	(20,052		)	(12,849		)
Interest expense	(5,146		)	(5,452		)	(10,441		)	(10,927		)
Depreciation and amortization	(5,932		)	(3,413		)	(12,303		)	(7,062		)
Total expenses	(20,368		)	(14,614		)	(42,796		)	(30,838		)
Net income	3,988			5,717			8,057			10,669
Less: Partners’ share	(1,981		)	(2,858		)	(4,017		)	(5,331		)
PREIT’s share	2,007			2,859			4,040			5,338
Amortization of excess investment	25			(75		)	74			(152		)
Equity in income of partnerships	$	2,032		$	2,784		$	4,114		$	5,186