INVESTMENTS IN PARTNERSHIPS

The following table presents summarized financial information of the equity investments in our unconsolidated partnerships as of March 31, 2016 and December 31, 2015:



(in thousands of dollars)	As of March 31, 2016			As of December 31, 2015
ASSETS:
Investments in real estate, at cost:
Operating properties	$	639,874		$	636,774
Construction in progress	128,479			126,199
Total investments in real estate	768,353			762,973
Accumulated depreciation	(191,450		)	(186,580		)
Net investments in real estate	576,903			576,393
Cash and cash equivalents	29,711			37,362
Deferred costs and other assets, net	37,999			39,890
Total assets	644,613			653,645
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable	444,599			440,450
Other liabilities	22,853			30,425
Total liabilities	467,452			470,875
Net investment	177,161			182,770
Partners’ share	91,516			95,165
PREIT’s share	85,645			87,605
Excess investment⁽¹⁾	7,638			7,877
Net investments and advances	$	93,283		$	95,482

Investment in partnerships, at equity	$	157,995		$	161,029
Distributions in excess of partnership investments	(64,712		)	(65,547		)
Net investments and advances	$	93,283		$	95,482

_________________________


⁽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 months ended March 31, 2016 and 2015:



	Three Months Ended March 31,
(in thousands of dollars)	2016			2015
Real estate revenue	$	29,191		$	26,497
Operating expenses:
Property operating expenses	(10,212		)	(10,706		)
Interest expense	(5,392		)	(5,350		)
Depreciation and amortization	(5,722		)	(6,370		)
Total expenses	(21,326		)	(22,426		)
Net income	7,865			4,071
Less: Partners’ share	(4,216		)	(2,036		)
PREIT’s share	3,649			2,035
Amortization of excess investment	234			48
Equity in income of partnerships	$	3,883		$	2,083

Significant Unconsolidated Subsidiaries

Two of our unconsolidated subsidiaries, in each of which we have a 50% partnership interest, (i) Lehigh Valley Associates LP, the owner of the substantial majority of Lehigh Valley Mall, and (ii) Metroplex West Associates, LP, the owner of the substantial majority of Metroplex Shopping Center, met the conditions of significant unconsolidated subsidiaries as of March 31, 2016. The financial information of these entities are included in the amounts above. Summarized balance sheet information as of March 31, 2016 and December 31, 2015 and summarized statement of operations information for the three months ended March 31, 2016 and 2015 for these entities, which are accounted for using the equity method, are as follows:



	Lehigh Valley Associates LP				Metroplex West Associates, LP
	As of				As of
(in thousands of dollars)	March 31, 2016		December 31, 2015		March 31, 2016		December 31, 2015
Summarized balance sheet information
Total assets	$	47,580	$	48,352	$	36,230	$	36,164
Mortgage loan payable	128,305		128,883		81,121		81,505



	Three Months Ended March 31,						Three Months Ended March 31,
(in thousands of dollars)	2016			2015			2016			2015
Summarized statement of operations information
Revenue	$	9,048		$	8,944		$	2,868		$	2,884
Property operating expenses	(2,226		)	(2,480		)	(748		)	(637		)
Interest expense	(1,906		)	(1,940		)	(1,024		)	(1,044		)
Net income	4,083			3,461			763			358
PREIT’s share of equity in income
of partnership	2,042			1,730			381			179