XML 102 R27.htm IDEA: XBRL DOCUMENT v2.4.1.9
INVESTMENTS IN PARTNERSHIPS (Tables)
 12 Months Ended
Dec. 31, 2014
Equity Method Investments and Joint Ventures [Abstract]  
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, 2014, 2013 and 2012:
 
 
For the Year Ended December 31,
(in thousands of dollars)
2014
 
2013
 
2012
Real estate revenue
$
95,643

 
$
81,020

 
$
77,533

Expenses:
 
 
 
 
 
Operating expenses
(32,992
)
 
(24,104
)
 
(23,023
)
Interest expense
(21,805
)
 
(22,228
)
 
(22,573
)
Depreciation and amortization
(19,521
)
 
(14,401
)
 
(14,447
)
Total expenses
(74,318
)
 
(60,733
)
 
(60,043
)
Net income
21,325

 
20,287

 
17,490

Less: Partners’ share
(10,637
)
 
(10,096
)
 
(8,738
)
Company’s share
10,688

 
10,191

 
8,752

Amortization of excess investment
(119
)
 
(413
)
 
(414
)
Equity in income of partnerships
$
10,569

 
$
9,778

 
$
8,338
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
2015
$
3,263

 
$
35,221

 
$
38,484

 
$
77,015

2016
2,805

 
—

 
2,805

 
5,658

2017
2,925

 
3,283

 
6,208

 
14,085

2018
3,030

 
402

 
3,432

 
7,669

2019
3,202

 
—

 
3,202

 
6,404

2020 and thereafter
5,998

 
130,181

 
136,179

 
272,359

 
$
21,223

 
$
169,087

 
$
190,310

 
$
383,190
Summary of Equity Investments
We have a 50% partnership interest in Lehigh Valley Associates LP, the owner of Lehigh Valley Mall, which is a significant unconsolidated subsidiary, and that is included in the amounts above. Summarized financial information as of or for the years ended December 31, 2014 and 2013 for this property, which is accounted for by the equity method, is as follows:

 
 
As of or for the year ended December 31,
(in thousands of dollars)
 
2014
 
2013
Total assets
 
$
51,703

 
$
55,592

Mortgage payable
 
131,394

 
133,542

Revenues
 
36,605

 
35,628

Property operating expenses
 
10,027

 
9,817

Interest expense
 
7,839

 
7,962

Net income
 
14,932

 
14,515

PREIT’s share of equity in income of partnership
 
7,466

 
7,258

The following table presents summarized financial information of our equity investments in unconsolidated partnerships as of December 31, 2014 and 2013:
 
 
As of December 31,
(in thousands of dollars)
2014
 
2013
ASSETS:
 
 
 
Investments in real estate, at cost:
 
 
 
Retail properties
$
654,024

 
$
416,964

Construction in progress
41,919

 
2,298

Total investments in real estate
695,943

 
419,262

Accumulated depreciation
(190,100
)
 
(169,369
)
Net investments in real estate
505,843

 
249,893

Cash and cash equivalents
15,229

 
15,327

Deferred costs and other assets, net
37,274

 
19,474

Total assets
558,346

 
284,694

LIABILITIES AND PARTNERS’ EQUITY (DEFICIT):
 
 
 
Mortgage loans
383,190

 
398,717

Other liabilities
34,314

 
9,667

Total liabilities
417,504

 
408,384

Net equity (deficit)
140,842

 
(123,690
)
Partners’ share
74,663

 
(66,325
)
Company’s share
66,179

 
(57,365
)
Excess investment(1) 
8,747

 
8,837

Net investments and advances
$
74,926

 
$
(48,528
)
 
 
 
 
Investment in partnerships, at equity
$
140,882

 
$
15,963

Distributions in excess of partnership investments
(65,956
)
 
(64,491
)
Net investments and advances
$
74,926

 
$
(48,528
)
 
(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.”
Summary of Mortgage Loans Secured by Our Unconsolidated Properties
The following table presents the mortgage loans secured by our unconsolidated properties entered into since January 1, 2013:
 
Financing Date
Property
 
Amount Financed or
Extended
(in millions of dollars)
 
Stated Interest Rate
 
Maturity
2014 Activity:
 
 
 
 
 
 
 
December
Gloucester Premium Outlets
 
$
1.6

 
LIBOR plus 1.50%
 
June 2018
 
(1) 
The unconsolidated entity that owns Gloucester Premium Outlets entered into this construction mortgage loan. The construction mortgage loan has a maximum availability of $90.0 million, of which $88.4 million is available as of December 31, 2014 (after minimum construction thresholds are achieved). Our interest in the unconsolidated entity is 25%.