Investments in Partnerships (Tables)

9 Months Ended

Sep. 30, 2019

Equity Method Investments And Joint Ventures [Abstract]

The following table presents summarized financial information of the equity investments in our unconsolidated partnerships as of September 30, 2019 and December 31, 2018:

(in thousands of dollars)	September 30, 2019			December 31, 2018
ASSETS:
Investments in real estate, at cost:
Operating properties	$	739,199		$	575,149
Construction in progress		362,928			420,771
Total investments in real estate		1,102,127			995,920
Accumulated depreciation		(223,790	)		(212,574	)
Net investments in real estate		878,337			783,346
Cash and cash equivalents		33,895			20,446
Deferred costs and other assets, net		41,441			30,549
Total assets		953,673			834,341
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		501,095			507,090
FDP Term Loan, net		298,960			247,901
Other liabilities		82,450			34,463
Total liabilities		882,505			789,454
Net investment	$	71,168		$	44,887
Partners’ share		33,661			21,583
PREIT’s share		37,507			23,304
Excess investment⁽¹⁾		18,379			15,763
Net investments and advances	$	55,886		$	39,067
Reconciliation to comparable GAAP balance sheet item:
Investment in partnerships, at equity	$	143,440		$	131,124
Distributions in excess of partnership investments		(87,554	)		(92,057	)
Net investment	$	55,886		$	39,067

_____________________

⁽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 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 nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands of dollars)	2019			2018			2019			2018
Real estate revenue	$	23,742		$	23,848		$	70,636		$	73,826
Operating expenses:
Property operating and other expenses		(8,805	)		(7,659	)		(24,331	)		(23,512	)
Interest expense⁽¹⁾		(5,771	)		(5,872	)		(17,428	)		(17,440	)
Depreciation and amortization		(5,317	)		(4,763	)		(14,675	)		(14,715	)
Total expenses		(19,893	)		(18,294	)		(56,434	)		(55,667	)
Net income		3,849			5,554			14,202			18,159
Partners’ share		(2,191	)		(3,057	)		(7,777	)		(9,971	)
PREIT’s share		1,658			2,497			6,425			8,188
Amortization of and adjustments to excess investment, net		(127	)		(20	)		(289	)		(2	)
Equity in income of partnerships	$	1,531		$	2,477		$	6,136		$	8,186
(1) Net of capitalized interest expense of $1,602 and $1,371 for the three months ended September 30, 2019 and 2018, respectively, and $4,554 and $3,292 for the nine months ended September 30, 2019 and 2018, respectively.

Summarized Balance Sheet And Statement Of Operations For Subsidiary

Summarized balance sheet information as of September 30, 2019 and December 31, 2018, and summarized statement of operations information for the three and nine months ended September 30, 2019 and 2018 for these entities, which are accounted for using the equity method, are as follows:

LVA

(in thousands of dollars)	September 30, 2019		December 31, 2018
Summarized balance sheet information
Total assets	$	58,139	$	52,255
Mortgage loan payable, net		192,873		196,328

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands of dollars)	2019			2018			2019			2018
Summarized statement of operations information
Revenue	$	8,006		$	8,871		$	24,589		$	26,474
Property operating expenses		(2,138	)		(2,249	)		(6,351	)		(6,778	)
Interest expense		(2,027	)		(2,062	)		(6,055	)		(6,158	)
Net income		3,059			3,853			9,768			11,495
PREIT’s share of equity in income of partnership		1,529			1,927			4,884			5,748

FDP

(in thousands of dollars)	September 30, 2019		December 31, 2018
Summarized balance sheet information
Total assets	$	614,958	$	497,419
FDP Term Loan, net		298,960		247,901

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands of dollars)	2019			2018			2019			2018
Summarized statement of operations information
Revenue	$	1,271		$	653		$	2,667		$	3,404
Property operating expenses		(1,901	)		(913	)		(3,100	)		(3,044	)
Interest expense		(2	)		(32	)		(2	)		(95	)
Net income		(2,553	)		(1,562	)		(4,879	)		(4,012	)
PREIT’s share of equity in income of partnership		(1,262	)		(687	)		(2,299	)		(1,746	)