Investments in Partnerships (Tables)

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Summary of Equity Method Investments

The following table presents summarized financial information of the equity method investments in our unconsolidated partnerships as of September 30, 2022 and December 31, 2021:

_____________________

(in thousands of dollars)	September 30, 2022			December 31, 2021
ASSETS:
Investments in real estate, at cost:
Operating properties	$	739,970		$	847,560
Construction in progress		4,938			6,456
Total investments in real estate		744,908			854,016
Accumulated depreciation		(233,300	)		(247,133	)
Net investments in real estate		511,608			606,883
Cash and cash equivalents		22,754			59,004
Deferred costs and other assets, net		149,320			155,247
Total assets		683,682			821,134
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		401,844			493,904
FDP Term Loan, net		111,544			194,602
Partnership Loan		206,259			115,543
Other liabilities		151,777			141,619
Total liabilities		871,424			945,668
Net investment		(187,742	)		(124,534	)
Partners’ share		(98,960	)		(62,771	)
PREIT’s share		(88,782	)		(61,763	)
Excess investment (1)		6,987			6,718
Net investments and advances	$	(81,795	)	$	(55,045	)
Investment in partnerships, at equity	$	7,907		$	16,525
Distributions in excess of partnership investments		(89,702	)		(71,570	)
Net investments and advances	$	(81,795	)	$	(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.”

Summary of Share of Equity in Loss of Partnerships

The following table summarizes our share of equity in loss of partnerships for the three and nine months ended September 30, 2022 and 2021:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands of dollars)	2022			2021			2022			2021
Real estate revenue	$	25,076		$	27,790		$	82,656		$	85,827
Expenses:
Property operating and other expenses		(11,825	)		(11,878	)		(34,717	)		(35,759	)
Interest expense (1)		(12,669	)		(11,309	)		(36,631	)		(33,104	)
Depreciation and amortization		(5,382	)		(6,715	)		(18,508	)		(20,051	)
Total expenses		(29,876	)		(29,902	)		(89,856	)		(88,914	)
Net loss		(4,800	)		(2,112	)		(7,200	)		(3,087	)
Less: Partners’ share		2,444			719			3,261			810
PREIT’s share		(2,356	)		(1,393	)		(3,939	)		(2,277	)
Amortization of excess investment		-			(36	)		-			(152	)
Equity in loss of partnerships	$	(2,356	)	$	(1,429	)	$	(3,939	)	$	(2,429	)

(1) Net of capitalized interest expense of $8 and $92 for the three months ended September 30, 2022 and 2021, respectively, and $8 and $338 for the nine months ended September 30, 2022 and 2021, respectively.