Investments in Partnerships (Tables)

6 Months Ended

Jun. 30, 2023

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 June 30, 2023 and December 31, 2022:

_____________________

	June 30,			December 31,
(in thousands of dollars)	2023			2022
ASSETS:
Investments in real estate, at cost:
Operating properties	$	742,502		$	741,007
Construction in progress		9,176			5,346
Total investments in real estate		751,678			746,353
Accumulated depreciation		(246,944	)		(237,791	)
Net investments in real estate		504,734			508,562
Cash and cash equivalents		40,016			28,186
Deferred costs and other assets, net		144,097			142,929
Total assets		688,847			679,677
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		396,106			400,141
FDP Term Loan, net		75,820			104,427
Partnership Loans		249,215			214,008
Other liabilities		177,283			155,873
Total liabilities		898,424			874,449
Net investment		(209,577	)		(194,772	)
Partners’ share		(109,920	)		(102,495	)
PREIT’s share		(99,657	)		(92,277	)
Excess investment (1)		6,986			6,986
Net investments and advances	$	(92,671	)	$	(85,291	)
Investment in partnerships, at equity	$	7,790		$	7,845
Distributions in excess of partnership investments		(100,461	)		(93,136	)
Net investments and advances	$	(92,671	)	$	(85,291	)

(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) income 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 six months ended June 30, 2023 and 2022:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands of dollars)	2023			2022			2023			2022
Real estate revenue	$	25,358		$	27,691		$	52,525		$	57,580
Expenses:
Property operating and other expenses		(9,831	)		(11,018	)		(19,988	)		(22,892	)
Interest expense (1)		(17,283	)		(12,208	)		(33,981	)		(23,962	)
Depreciation and amortization		(5,578	)		(6,471	)		(11,269	)		(13,126	)
Total expenses		(32,692	)		(29,697	)		(65,238	)		(59,980	)
Net loss		(7,334	)		(2,006	)		(12,713	)		(2,400	)
Less: Partners’ share		3,348			818			6,031			817
PREIT’s share		(3,986	)		(1,188	)		(6,682	)		(1,583	)
Equity in loss of partnerships	$	(3,986	)	$	(1,188	)	$	(6,682	)	$	(1,583	)

(1) Net of capitalized interest expense of $21 thousand and $0 for the three months ended June 30, 2023 and 2022, respectively, and $45 thousand and $0 for the six months ended June 30, 2023 and 2022, respectively.