Investments in Partnerships (Tables)

12 Months Ended

Dec. 31, 2019

Equity Method Investments And Joint Ventures [Abstract]

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

	December 31,
(in thousands of dollars)	2019			2018
ASSETS:
Investments in real estate, at cost:
Operating properties	$	883,530		$	575,149
Construction in progress		251,029			420,771
Total investments in real estate		1,134,559			995,920
Accumulated depreciation		(229,877	)		(212,574	)
Net investments in real estate		904,682			783,346
Cash and cash equivalents		34,766			20,446
Deferred costs and other assets, net		43,476			30,549
Total assets		982,924			834,341
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		499,057			507,090
FDP Term Loan, net		299,091			247,901
Other liabilities		79,166			34,463
Total liabilities		877,314			789,454
Net investment		105,610			44,887
Partners’ share		50,997			21,583
PREIT’s share		54,613			23,304
Excess investment (1)		17,464			15,763
Net investments and advances	$	72,077		$	39,067
Investment in partnerships, at equity	$	159,993		$	131,124
Distributions in excess of partnership investments		(87,916	)		(92,057	)
Net investments and advances	$	72,077		$	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 years ended December 31, 2019, 2018 and 2017:

	For the Year Ended December 31,
(in thousands of dollars)	2019			2018			2017
Real estate revenue	$	99,580		$	98,781		$	115,118
Expenses:
Property operating and other expenses		(34,955	)		(30,839	)		(33,273	)
Interest expense		(23,272	)		(23,373	)		(25,251	)
Depreciation and amortization		(21,942	)		(19,393	)		(24,872	)
Total expenses		(80,169	)		(73,605	)		(83,396	)
Net income		19,411			25,176			31,722
Less: Partners’ share		(10,768	)		(13,719	)		(17,607	)
PREIT’s share		8,643			11,457			14,115
Amortization of excess investment		(354	)		(82	)		252
Equity in income of partnerships	$	8,289		$	11,375		$	14,367

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
2020	$	4,378	$	—	$	4,378	$	8,801
2021		4,049		41,170		45,219		91,945
2022		3,738		21,500		25,238		93,476
2023		3,620		33,502		37,122		74,244
2024		2,886		—		2,886		5,772
2025 and thereafter		7,213		106,087		113,300		226,601
Total principal payments	$	25,884	$	202,259	$	228,143		500,839
Less: Unamortized debt issuance costs								1,782
Carrying value of mortgage notes payable							$	499,057

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, 2017:

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
March	Gloucester Premium Outlets ₍₂₎	$	86.0	LIBOR plus 1.50%	March 2022
2017 Activity:
October	Lehigh Valley Mall ₍₃₎₍₄₎	$	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 $3.1 million.

(2)	We own a 25% partnership interest in Gloucester Premium Outlets and our share of this mortgage loan is $21.5 million.

(3)	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 $96.4 million.

(4)

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.

Summarized Balance Sheet And Statement Of Operations For Subsidiary

Summarized balance sheet information as of December 31, 2019, 2018 and 2017, and summarized statement of operations information for the years ended December 31, 2019, 2018 and 2017 for these entities, which are accounted for using the equity method, are as follows:

LVA

	As of or for the year ended December 31,
(in thousands of dollars)	2019		2018		2017
Total assets	$	62,504	$	52,255	$	43,850
Mortgage payable		191,998		196,328		199,451
Revenue		32,906		35,662		34,945
Property operating expenses		8,448		9,014		9,038
Interest expense		8,055		8,222		10,907
Net income		13,162		15,605		11,389
PREIT’s share of equity in income of partnership		6,581		7,803		5,695

FDP

	As of or for the year ended December 31,
(in thousands of dollars)	2019			2018			2017
Total assets	$	641,377		$	497,419		$	428,827
FDP Term Loan, net		299,091			250,000			—
Revenue		8,028			4,053			18,708
Property operating expenses		6,995			3,630			6,909
Interest expense		178			126			126
Net income		(7,352	)		(4,990	)		2,436
PREIT’s share of equity in income of partnership		(3,676	)		(2,495	)		1,218