The following table presents summarized financial information of our equity investments in unconsolidated partnerships as of December 31, 2021 and 2020:


	December 31,
(in thousands of dollars)	2021			2020
ASSETS:
Investments in real estate, at cost:
Operating properties	$	847,560		$	824,328
Construction in progress		6,456			20,632
Total investments in real estate		854,016			844,960
Accumulated depreciation		(247,133	)		(224,641	)
Net investments in real estate		606,883			620,319
Cash and cash equivalents		59,004			28,060
Deferred costs and other assets, net		155,247			161,465
Total assets		821,134			809,844
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		493,904			491,119
FDP Term Loan, net		194,602			201,000
Partnership Loan		115,543			100,000
Other liabilities		141,619			132,715
Total liabilities		945,668			924,834
Net investment		(124,534	)		(114,990	)
Partners’ share		(62,771	)		(59,080	)
PREIT’s share		(61,763	)		(55,910	)
Excess investment (1)		6,718			6,390
Net investments and advances	$	(55,045	)	$	(49,520	)
Investment in partnerships, at equity	$	16,525		$	27,066
Distributions in excess of partnership investments		(71,570	)		(76,586	)
Net investments and advances	$	(55,045	)	$	(49,520	)

We record distributions from our equity investments using the nature of the distribution approach.

The following table summarizes our share of equity in (loss) income of partnerships for the years ended December 31, 2021 and 2020:


	For the Year Ended December 31,
(in thousands of dollars)	2021			2020
Real estate revenue	$	120,861		$	101,762
Expenses:
Property operating and other expenses		(52,111	)		(48,285	)
Interest expense		(44,547	)		(27,665	)
Depreciation and amortization		(29,200	)		(34,947	)
Total expenses		(125,858	)		(110,897	)
Net (loss) income		(4,997	)		(9,135	)
Less: Partners’ share		1,469			4,186
PREIT’s share		(3,528	)		(4,949	)
Amortization of excess investment		(204	)		(595	)
Equity in (loss) income of partnerships	$	(3,732	)	$	(5,544	)

In May 2021, PM Gallery LP, a Delaware limited partnership and joint venture entity owned indirectly by us and The Macerich Company (“Macerich”), sold, through a subsidiary, a portion of an asset at Fashion District Philadelphia (“FDP”) for $5.3 million. The sale resulted in a gain of $2.6 million for the joint venture, our share of which is $1.3 million at a 50% share. The gain is recorded in gain on sales of real estate by equity method investee in our consolidated statements of operations for the year ended December 31, 2021.

PM Gallery LP previously entered into a $250.0 million term loan in January 2018 (as amended in July 2019 to increase the total maximum potential borrowings to $350.0 million) to fund the ongoing redevelopment of Fashion District Philadelphia and to repay capital contributions to the venture previously made by the partners. A total of $51.0 million was drawn during the third quarter of 2019 and we received aggregate distributions of $25.0 million as our share of the draws. On December 10, 2020, PM Gallery LP, together with certain other subsidiaries owned indirectly by us and Macerich (including the fee and leasehold owners of the properties that are part of the Fashion District Philadelphia project), entered into the FDP Loan Agreement. In connection with the execution of the FDP Loan Agreement, a $100.0 million principal payment was made (and funded indirectly by Macerich, the “Partnership Loan”) to pay down the existing loan, reducing the outstanding principal under the FDP Loan Agreement from $301.0 million to $201.0 million. The joint venture must repay the Partnership Loan plus 15% accrued interest to Macerich, in its capacity as lender, prior to the resumption of 50/50 cash distributions to the Company and its joint venture partner.

The FDP Loan Agreement provides for (i) a maturity date of January 22, 2023, with the potential for a one-year extension upon the borrowers’ satisfaction of certain conditions, (ii) an interest rate at the borrowers’ option with respect to each advance of either (A) the Base Rate (defined as the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50%, and (c) the LIBOR Market Index Rate plus 1.00%) plus 2.50% or (B) LIBOR for the applicable period plus 3.50%, (iii) a full recourse guarantee of 50% of the borrowers’ obligations by PREIT Associates, L.P., on a several basis, (iv) a full recourse guarantee of certain of the borrowers’ obligations by The Macerich Partnership, L.P., up to a maximum of $50.0 million, on a several basis, (v) a pledge of the equity interests of certain indirect subsidiaries of PREIT and Macerich, as well as of PREIT-RUBIN, Inc. and one of its subsidiaries, that have a direct or indirect ownership interest in the borrowers, (vi) a non-recourse carve-out guaranty and a hazardous materials indemnity by each of PREIT Associates, L.P. and The Macerich Partnership, L.P., and (vii) mortgages of the borrowers’ fee and leasehold interests in the properties that are part of the Fashion District Philadelphia project and certain other properties. The FDP Loan Agreement contains certain covenants typical for loans of its type. We anticipate FDP not meeting certain financial covenants applicable under the FDP Loan Agreement during 2022. See Going Concern Considerations section in Note 1.

In connection with the execution of the FDP Loan Agreement, the governing structure of PM Gallery LP was modified such that, effective as of January 1, 2021, Macerich is responsible for the entity’s operations and, subject to limited exceptions, controls major decisions. The Company considered the changes to the governing structure of PM Gallery LP and determined the investment qualifies as a variable interest entity and will continue to be accounted for under the equity method of accounting. Our maximum exposure to losses indicated below is limited to the extent of our investment, which is a 50% ownership.

(1) Amount shown is net of a 15% discount for non-controlling interest ownership

In connection with the December 10, 2020 remeasurement of assets of FDP, the joint venture recognized a loss on remeasurement of assets of which our share was $145.7 million and we recorded $2.8 million of other than temporary impairment on the fair value of our non-controlling ownership interest in the joint venture. These amounts are included in loss on remeasurement of assets by equity method investee in our consolidated statement of operations.

Mortgage loans, which are secured by seven of the unconsolidated properties (including one property under development), are due in installments over various terms extending to the year 2027. Five of the mortgage loans bear interest at a fixed interest rate and two of the mortgage loans bear interest at a variable interest rate. The balances of the fixed interest rate mortgage loans have interest rates that range from 3.20% to 5.00% and had a weighted average interest rate of 4.13% at December 31, 2021. The balances of the variable interest rate mortgage loans have interest rates that range from 1.60% to 4.00% and had a weighted average interest rate of 1.89% at December 31, 2021. The weighted average interest rate of all unconsolidated mortgage loans was 3.86% at December 31, 2021. The liability under each mortgage loan is limited to the unconsolidated partnership that owns the particular property. 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
2022	$	4,131	$	21,500	$	25,631	$	94,292
2023		4,009		36,362		40,371		82,191
2024		3,838		—		3,838		7,675
2025		4,625		26,299		30,924		61,848
2026 and thereafter		13,794		111,313		125,107		250,238
Total principal payments	$	30,397	$	195,474	$	225,871		496,244
Less: Unamortized debt issuance costs								2,340
Carrying value of mortgage notes payable							$	493,904

Gloucester Premium Outlets
On March 1, 2022, the Company’s unconsolidated subsidiary exercised its one-year extension option of its mortgage loan securing its property at Gloucester Premium Outlets. The $86.0 million loan maturing on March 1, 2023 has a variable interest rate.

Pavilion at Market East

On May 25, 2021, the Company’s unconsolidated subsidiary completed a refinance of its mortgage loan securing its property at Pavilion at Market East. The $7.6 million mortgage has a 2-year term, maturing in May 2023. The loan has interest only payments until May 2022 at a variable rate of the greater of (a) one month LIBOR plus 3.5% or (b) 4.0%.

The Court at Oxford Valley

On June 25, 2021, the Company’s unconsolidated subsidiary completed a refinance of its mortgage loan securing its property at the Court at Oxford Valley. The $55.0 million mortgage has a 10-year term, maturing on July 1, 2031. The loan has interest only payments until August 2024 at a fixed interest rate of 3.2%.

Red Rose Commons

On June 30, 2021, the Company’s unconsolidated subsidiary completed a refinance of its mortgage loan securing its property at Red Rose Commons. The $34.0 million mortgage has a 10-year term, maturing on July 6, 2031 at a fixed interest rate of 3.3%.