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Investments in Partnerships
 9 Months Ended
Sep. 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 September 30, 2013 and December 31, 2012:
 
(in thousands of dollars)
As of September 30, 2013
 
As of December 31, 2012
ASSETS:
 
 
 
Investments in real estate, at cost:
 
 
 
Operating properties
$
415,643

 
$
414,515

Construction in progress
2,569

 
2,003

Total investments in real estate
418,212

 
416,518

Accumulated depreciation
(166,439
)
 
(157,361
)
Net investments in real estate
251,773

 
259,157

Cash and cash equivalents
11,413

 
9,833

Deferred costs and other assets, net
19,790

 
18,605

Total assets
282,976

 
287,595

LIABILITIES AND PARTNERS’ DEFICIT:
 
 
 
Mortgage loans payable
400,399

 
405,297

Other liabilities
6,257

 
9,130

Total liabilities
406,656

 
414,427

Net deficit
(123,680
)
 
(126,832
)
Partners’ share
(66,210
)
 
(67,735
)
PREIT’s share
(57,470
)
 
(59,097
)
Excess investment (1)
8,898

 
9,078

Net investments and advances
$
(48,572
)
 
$
(50,019
)
 
 
 
 
Investment in partnerships, at equity
$
15,615

 
$
14,855

Distributions in excess of partnership investments
(64,187
)
 
(64,874
)
Net investments and advances
$
(48,572
)
 
$
(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 nine months ended September 30, 2013 and 2012:
 
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
(in thousands of dollars)
2013
 
2012
 
2013
 
2012
Real estate revenue
$
20,153

 
$
19,530

 
$
59,941

 
$
57,594

Expenses:
 
 
 
 
 
 
 
Operating expenses
(6,037
)
 
(5,755
)
 
(17,774
)
 
(17,006
)
Interest expense
(5,539
)
 
(5,640
)
 
(16,659
)
 
(16,939
)
Depreciation and amortization
(3,695
)
 
(3,600
)
 
(10,801
)
 
(10,801
)
Total expenses
(15,271
)
 
(14,995
)
 
(45,234
)
 
(44,746
)
Net income
4,882

 
4,535

 
14,707

 
12,848

Less: Partners’ share
(2,435
)
 
(2,267
)
 
(7,318
)
 
(6,422
)
PREIT’s share
2,447

 
2,268

 
7,389

 
6,426

Amortization of excess investment
(102
)
 
(104
)
 
(308
)
 
(316
)
Equity in income of partnerships
$
2,345

 
$
2,164

 
$
7,081

 
$
6,110