XML 78 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Investments in Partnerships
 6 Months Ended
Jun. 30, 2013
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Partnerships
INVESTMENTS IN PARTNERSHIPS

The following table presents summarized financial information of the equity investments in our unconsolidated partnerships as of June 30, 2013 and December 31, 2012:
 
(in thousands of dollars)
As of June 30, 2013
 
As of December 31, 2012
ASSETS:
 
 
 
Investments in real estate, at cost:
 
 
 
Operating properties
$
415,018

 
$
414,515

Construction in progress
2,687

 
2,003

Total investments in real estate
417,705

 
416,518

Accumulated depreciation
(163,474
)
 
(157,361
)
Net investments in real estate
254,231

 
259,157

Cash and cash equivalents
12,144

 
9,833

Deferred costs and other assets, net
18,090

 
18,605

Total assets
284,465

 
287,595

LIABILITIES AND PARTNERS’ DEFICIT:
 
 
 
Mortgage loans payable
402,046

 
405,297

Other liabilities
6,672

 
9,130

Total liabilities
408,718

 
414,427

Net deficit
(124,253
)
 
(126,832
)
Partners’ share
(66,489
)
 
(67,735
)
PREIT’s share
(57,764
)
 
(59,097
)
Excess investment (1)
8,957

 
9,078

Net investments and advances
$
(48,807
)
 
$
(50,019
)
 
 
 
 
Investment in partnerships, at equity
$
15,193

 
$
14,855

Distributions in excess of partnership investments
(64,000
)
 
(64,874
)
Net investments and advances
$
(48,807
)
 
$
(50,019
)
_________________________
(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.”

We record distributions from our equity investments as cash from operating activities up to an amount equal to the equity in income of partnerships. Amounts in excess of our share of the income in the equity investments are treated as a return of partnership capital and recorded as cash from investing activities.

The following table summarizes our share of equity in income of partnerships for the three and six months ended June 30, 2013 and 2012:
 
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
(in thousands of dollars)
2013
 
2012
 
2013
 
2012
Real estate revenue
$
19,561

 
$
18,686

 
$
39,788

 
$
38,063

Expenses:
 
 
 
 
 
 
 
Operating expenses
(5,735
)
 
(5,325
)
 
(11,737
)
 
(11,252
)
Interest expense
(5,568
)
 
(5,645
)
 
(11,117
)
 
(11,299
)
Depreciation and amortization
(3,534
)
 
(3,590
)
 
(7,106
)
 
(7,201
)
Total expenses
(14,837
)
 
(14,560
)
 
(29,960
)
 
(29,752
)
Net income
4,724

 
4,126

 
9,828

 
8,311

Less: Partners’ share
(2,339
)
 
(2,067
)
 
(4,885
)
 
(4,154
)
PREIT’s share
2,385

 
2,059

 
4,943

 
4,157

Amortization of excess investment
(102
)
 
(107
)
 
(207
)
 
(212
)
Equity in income of partnerships
$
2,283

 
$
1,952

 
$
4,736

 
$
3,945