Investments in Partnerships (Tables)

9 Months Ended

Sep. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Summary of Equity Method Investments

The following table presents summarized financial information of the equity method investments in our unconsolidated partnerships as of September 30, 2023 and December 31, 2022:

	September 30,			December 31,
(in thousands of dollars)	2023			2022
ASSETS:
Investments in real estate, at cost:
Operating properties	$	745,102		$	741,007
Construction in progress		13,511			5,346
Total investments in real estate		758,613			746,353
Accumulated depreciation		(251,317	)		(237,791	)
Net investments in real estate		507,296			508,562
Cash and cash equivalents		54,191			28,186
Deferred costs and other assets, net		140,613			142,929
Total assets		702,100			679,677
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		402,455			400,141
FDP Term Loan, net		73,320			104,427
Partnership Loans		251,939			214,008
Other liabilities		193,164			155,873
Total liabilities		920,878			874,449
Net investment		(218,778	)		(194,772	)
Partners’ share		(114,519	)		(102,495	)
PREIT’s share		(104,259	)		(92,277	)
Excess investment (1)		6,986			6,986
Net investments and advances	$	(97,273	)	$	(85,291	)
Investment in partnerships, at equity	$	7,726		$	7,845
Distributions in excess of partnership investments		(104,999	)		(93,136	)
Net investments and advances	$	(97,273	)	$	(85,291	)

(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) income of partnerships.”

Summary of Share of Equity in Loss of Partnerships

The following table summarizes our share of equity in loss of partnerships for the three and nine months ended September 30, 2023 and 2022:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands of dollars)	2023			2022			2023			2022
Real estate revenue	$	24,393		$	25,076		$	76,918		$	82,656
Expenses:
Property operating and other expenses		(10,019	)		(11,825	)		(30,007	)		(34,717	)
Interest expense (1)		(18,301	)		(12,669	)		(52,282	)		(36,631	)
Depreciation and amortization		(5,274	)		(5,382	)		(16,543	)		(18,508	)
Total expenses		(33,594	)		(29,876	)		(98,832	)		(89,856	)
Net loss		(9,201	)		(4,800	)		(21,914	)		(7,200	)
Less: Partners’ share		4,599			2,444			10,630			3,261
PREIT’s share		(4,602	)		(2,356	)		(11,284	)		(3,939	)
Equity in loss of partnerships	$	(4,602	)	$	(2,356	)	$	(11,284	)	$	(3,939	)

(1) Net of capitalized interest expense of $17 thousand and $8 thousand for the three months ended September 30, 2023 and 2022, respectively, and $62 thousand and $8 thousand for the nine months ended September 30, 2023 and 2022, respectively.