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INVESTMENTS IN PARTNERSHIPS (Tables)
 12 Months Ended
Dec. 31, 2017
Equity Method Investments and Joint Ventures [Abstract]  
Summary of Share of Equity in Income of Partnerships
The following table summarizes our share of equity in income of partnerships for the years ended December 31, 2017, 2016 and 2015:
 
 
For the Year Ended December 31,
(in thousands of dollars)
2017
 
2016
 
2015
Real estate revenue
$
115,118

 
$
117,912

 
$
105,813

Expenses:
 
 
 
 
 
Property operating expenses
(33,273
)
 
(33,597
)
 
(39,134
)
Interest expense
(25,251
)
 
(21,573
)
 
(21,021
)
Depreciation and amortization
(24,872
)
 
(23,326
)
 
(25,718
)
Total expenses
(83,396
)
 
(78,496
)
 
(85,873
)
Net income
31,722

 
39,416

 
19,940

Less: Partners’ share
(17,607
)
 
(21,137
)
 
(10,128
)
Company’s share
14,115

 
18,279

 
9,812

Amortization of excess investment
252

 
198

 
(272
)
Equity in income of partnerships
$
14,367

 
$
18,477

 
$
9,540
Schedule of Principal Payments Based On Respective Partnership Interest
Our proportionate share, based on our respective partnership interest, of principal payments due in the next five years and thereafter is as follows:
 
 
Company’s Proportionate Share
 
 
(in thousands of dollars)
For the Year Ending December 31,
Principal
Amortization
 
Balloon
Payments
 
Total
 
Property
Total
2018
$
3,798

 
$
24,232

 
$
28,030

 
$
99,650

2019
4,107

 
—

 
4,107

 
8,215

2020
4,287

 
79,789

 
84,076

 
168,151

2021
4,040

 
38,160

 
42,200

 
84,401

2022
3,738

 
—

 
3,738

 
7,476

2023 and thereafter
13,720

 
59,801

 
73,521

 
147,040

Total principal payments
$
33,690

 
$
201,982

 
$
235,672

 
514,933

Less: Unamortized debt issuance costs
 
 
 
 
 
 
1,794

Carrying value of mortgage notes payable
 
 
 
 
 
 
$
513,139
Summary of Equity Investments
The following table presents summarized financial information of our equity investments in unconsolidated partnerships as of December 31, 2017 and 2016:
 
 
As of December 31,
(in thousands of dollars)
2017
 
2016
ASSETS:
 
 
 
Investments in real estate, at cost:
 
 
 
Retail properties
$
612,689

 
$
649,960

Construction in progress
293,102

 
160,699

Total investments in real estate
905,791

 
810,659

Accumulated depreciation
(202,424
)
 
(207,987
)
Net investments in real estate
703,367

 
602,672

Cash and cash equivalents
26,158

 
27,643

Deferred costs and other assets, net
34,345

 
37,705

Total assets
763,870

 
668,020

LIABILITIES AND PARTNERS’ EQUITY:
 
 
 
Mortgage loans
513,139

 
445,224

Other liabilities
37,971

 
23,945

Total liabilities
551,110

 
469,169

Net equity
212,760

 
198,851

Partners’ share
106,886

 
101,045

Company’s share
105,874

 
97,806

Excess investment(1) 
13,081

 
8,969

Net investments and advances
$
118,955

 
$
106,775

 
 
 
 
Investment in partnerships, at equity
$
216,823

 
$
168,608

Distributions in excess of partnership investments
(97,868
)
 
(61,833
)
Net investments and advances
$
118,955

 
$
106,775

 
(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 Mortgage Loans Secured by Our Unconsolidated Properties
The following table presents the mortgage loans secured by the unconsolidated properties entered into since January 1, 2016:
 
Financing Date
Property
 
Amount Financed or
Extended
(in millions of dollars)
 
Stated Interest Rate
 
Maturity
2018 Activity:
 
 
 
 
 
 
 
February
Pavilion at Market East(1)
 
$8.3
 
LIBOR plus 2.85%
 
February 2021
 
 
 
 
 
 
 
 
2017 Activity:
 
 
 
 
 
 
 
October
Lehigh Valley Mall(2)(3)
 
$200.0
 
Fixed 4.06%
 
November 2027
 
(1) 
We own a 40% partnership interest in Pavilion at Market East and our share of this mortgage loan is $3.3 million.
(2) 
The proceeds were used to repay the existing $124.6 million mortgage loan plus accrued interest. We own a 50% partnership interest in Lehigh Valley Mall and our share of this mortgage loan is $100.0 million.
(3) 
We received $35.3 million of proceeds as a distribution in connection with the financing. In connection with this new mortgage loan financing, the unconsolidated entity recorded $3.1 million of prepayment penalty and accelerated the amortization of $0.1 million of unamortized financing costs in the fourth quarter of 2017.




Significant Unconsolidated Subsidiary

We have a 50% partnership interest in Lehigh Valley Associates LP, the owner of Lehigh Valley Mall, which met the definition of a significant unconsolidated subsidiary in the year ended December 31, 2016. Lehigh Valley Mall did not meet the definition of a significant subsidiary as of or for the years ended December 31, 2017 or 2015. Summarized financial information as of or for the years ended December 31, 2017, 2016 and 2015 for this property, which is accounted for by the equity method, is as follows:
 
 
As of or for the years ended December 31,
 
(in thousands of dollars)
 
2017
 
2016
 
2015
 
Total assets
 
$
43,850

 
$
49,264

 
$
49,919

 
Mortgage payable
 
199,451

 
126,520

 
128,883

 
Revenue
 
34,945

 
36,923

 
36,497

 
Property operating expenses
 
9,038

 
8,659

 
9,599

 
Interest expense
 
10,907

 
7,570

 
7,708

 
Net income
 
11,389

 
17,264

 
15,844

 
PREIT’s share of equity in income of partnership
 
5,695

 
8,632

 
7,922