The following table presents summarized financial information of the equity investments in our unconsolidated partnerships as of March 31, 2022 and December 31, 2021:

_____________________


(in thousands of dollars)	March 31, 2022			December 31, 2021
ASSETS:
Investments in real estate, at cost:
Operating properties	$	850,817		$	847,560
Construction in progress		3,534			6,456
Total investments in real estate		854,351			854,016
Accumulated depreciation		(252,849	)		(247,133	)
Net investments in real estate		601,502			606,883
Cash and cash equivalents		66,294			59,004
Deferred costs and other assets, net		155,722			155,247
Total assets		823,518			821,134
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		491,957			493,904
FDP Term Loan, net		194,602			194,602
Partnership Loan		118,560			115,543
Other liabilities		145,691			141,619
Total liabilities		950,810			945,668
Net investment		(127,292	)		(124,534	)
Partners’ share		(63,893	)		(62,771	)
PREIT’s share		(63,399	)		(61,763	)
Excess investment (1)		6,804			6,718
Net investments and advances	$	(56,595	)	$	(55,045	)
Investment in partnerships, at equity	$	12,749		$	16,525
Distributions in excess of partnership investments		(69,344	)		(71,570	)
Net investments and advances	$	(56,595	)	$	(55,045	)

(1)Excess investment represents the unamortized difference between our investment and our share of the equity in the underlying net investment in the unconsolidated partnerships. The excess investment is amortized over the life of the properties, and the amortization is included in “Equity in loss of partnerships.”

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 three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
(in thousands of dollars)	2022			2021
Real estate revenue	$	29,889		$	24,900
Expenses:
Property operating and other expenses		(11,874	)		(13,739	)
Interest expense (1)		(11,754	)		(10,704	)
Depreciation and amortization		(6,655	)		(6,930	)
Total expenses		(30,283	)		(31,373	)
Net loss		(394	)		(6,473	)
Less: Partners’ share		(1	)		3,096
PREIT’s share		(395	)		(3,377	)
Amortization of excess investment		-			(56	)
Equity in loss of partnerships	$	(395	)	$	(3,433	)

(1) Net of capitalized interest expense of $0 and $103 for the three months ended March 31, 2022 and 2021, respectively.

PM Gallery LP, a Delaware limited partnership and joint venture entity owned indirectly by us and The Macerich Company (“Macerich”), 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 an Amended and Restated Term Loan Agreement (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 the 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 that the joint venture will not meet 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 is limited to the extent of our investment, which is a 50% ownership.

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.

During the three months ended March 31, 2021, the Company’s unconsolidated subsidiary received an extension of its mortgage securing Pavilion at Market East for an additional three months to May 2021. 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%.