Investments in Partnerships (Tables)

6 Months Ended

Jun. 30, 2022

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, 2022 and December 31, 2021:

_____________________

(in thousands of dollars)	June 30, 2022			December 31, 2021
ASSETS:
Investments in real estate, at cost:
Operating properties	$	739,183		$	847,560
Construction in progress		3,110			6,456
Total investments in real estate		742,293			854,016
Accumulated depreciation		(228,716	)		(247,133	)
Net investments in real estate		513,577			606,883
Cash and cash equivalents		45,968			59,004
Deferred costs and other assets, net		151,514			155,247
Total assets		711,059			821,134
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		404,055			493,904
FDP Term Loan, net		194,602			194,602
Partnership Loan		119,067			115,543
Other liabilities		146,852			141,619
Total liabilities		864,576			945,668
Net investment		(153,517	)		(124,534	)
Partners’ share		(81,841	)		(62,771	)
PREIT’s share		(71,676	)		(61,763	)
Excess investment (1)		6,963			6,718
Net investments and advances	$	(64,713	)	$	(55,045	)
Investment in partnerships, at equity	$	7,967		$	16,525
Distributions in excess of partnership investments		(72,680	)		(71,570	)
Net investments and advances	$	(64,713	)	$	(55,045	)

(1) Excess investment represents the unamortized difference between our investment and our share of the equity in the underlying net investment in the unconsolidated partnerships. The excess investment is amortized over the life of the properties, and the amortization is included in “Equity in loss of partnerships.”

Summary of Share of Equity in Loss (Income) of Partnerships

The following table summarizes our share of equity in (loss) income of partnerships for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands of dollars)	2022			2021			2022			2021
Real estate revenue	$	27,691		$	33,137		$	57,580		$	58,037
Expenses:
Property operating and other expenses		(11,018	)		(10,142	)		(22,892	)		(23,881	)
Interest expense (1)		(12,208	)		(11,091	)		(23,962	)		(21,795	)
Depreciation and amortization		(6,471	)		(6,406	)		(13,126	)		(13,336	)
Total expenses		(29,697	)		(27,639	)		(59,980	)		(59,012	)
Net loss		(2,006	)		5,498			(2,400	)		(975	)
Less: Partners’ share		818			(3,005	)		817			91
PREIT’s share		(1,188	)		2,493			(1,583	)		(884	)
Amortization of excess investment		-			(60	)		-			(116	)
Equity in (loss) income of partnerships	$	(1,188	)	$	2,433		$	(1,583	)	$	(1,000	)

(1) Net of capitalized interest expense of $0 and $143 for the three months ended June 30, 2022 and 2021, respectively and $0 and $246 for the six months ended June 30, 2022 and 2021, respectively.

Summary of Financial Information about Significant Unconsolidated Subsidiary

The financial information of FDP is included in the amounts above. Summarized balance sheet information as of June 30, 2022 and December 31, 2021, and summarized statement of operations information for the three and six months ended June 30, 2022 and 2021 which is accounted for using the equity method, are as follows:

(in thousands of dollars)	June 30, 2022		December 31, 2021
Summarized balance sheet information
Total assets	$	456,410	$	457,050
FDP Term Loan, net		313,669		310,145

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands of dollars)	2022			2021			2022			2021
Summarized statement of operations information
Revenue	$	6,586		$	12,815		$	13,634		$	17,741
Property operating expenses		(3,998	)		(2,706	)		(9,212	)		(9,060	)
Interest expense		(7,524	)		(6,010	)		(14,609	)		(11,695	)
Net (loss) income		(8,006	)		544			(16,266	)		(9,789	)
PREIT’s share of equity in (loss) income of partnership		(4,003	)		272			(8,133	)		(4,895	)