Investments in Partnerships (Tables)

9 Months Ended

Sep. 30, 2020

Equity Method Investments And Joint Ventures [Abstract]

The following table presents summarized financial information of the equity investments in our unconsolidated partnerships as of September 30, 2020 and December 31, 2019:

(in thousands of dollars)	September 30, 2020			December 31, 2019
ASSETS:
Investments in real estate, at cost:
Operating properties	$	1,147,457		$	883,530
Construction in progress		35,940			251,029
Total investments in real estate		1,183,397			1,134,559
Accumulated depreciation		(256,471	)		(229,877	)
Net investments in real estate		926,926			904,682
Cash and cash equivalents		29,058			34,766
Deferred costs and other assets, net		117,609			43,476
Total assets		1,073,593			982,924
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		493,634			499,057
FDP Term Loan, net		299,575			299,091
Other liabilities		124,703			79,166
Total liabilities		917,912			877,314
Net investment	$	155,681		$	105,610
Partners’ share		76,128			50,997
PREIT’s share		79,553			54,613
Excess investment⁽¹⁾		18,669			17,464
Net investments and advances	$	98,222		$	72,077
Reconciliation to comparable GAAP balance sheet item:
Investment in partnerships, at equity	$	176,070		$	159,993
Distributions in excess of partnership investments		(77,848	)		(87,916	)
Net investment	$	98,222		$	72,077

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⁽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 income of partnerships.”

Summary of Share of Equity in (Loss) Income of Partnerships

The following table summarizes our share of equity in (loss) income of partnerships for the three and nine months ended September 30, 2020 and 2019:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands of dollars)	2020			2019			2020			2019
Real estate revenue	$	24,198		$	23,742		$	75,484		$	70,636
Operating expenses:
Property operating and other expenses		(13,924	)		(8,805	)		(35,884	)		(24,331	)
Interest expense⁽¹⁾		(6,038	)		(5,771	)		(18,008	)		(17,428	)
Depreciation and amortization		(10,570	)		(5,317	)		(25,965	)		(14,675	)
Total expenses		(30,532	)		(19,893	)		(79,857	)		(56,434	)
Net (loss) income		(6,334	)		3,849			(4,373	)		14,202
Partners’ share		3,183			(2,191	)		1,884			(7,777	)
PREIT’s share		(3,151	)		1,658			(2,489	)		6,425
Amortization of and adjustments to excess investment, net		(108	)		(127	)		(309	)		(289	)
Equity in (loss) income of partnerships	$	(3,259	)	$	1,531		$	(2,798	)	$	6,136

⁽¹⁾ Net of capitalized interest expense of $467 and $1,602 for the three months ended September 30, 2020 and 2019, respectively, and $2,394 and $4,554 for the nine months ended September 30, 2020 and 2019, respectively.

Summarized Balance Sheet And Statement Of Operations For Subsidiary

Summarized balance sheet information as of September 30, 2020 and December 31, 2019, and summarized statement of operations information for the three and nine months ended September 30, 2020 and 2019 for these entities, which are accounted for using the equity method, are as follows:

LVA

(in thousands of dollars)	September 30, 2020		December 31, 2019
Summarized balance sheet information
Total assets	$	64,971	$	62,504
Mortgage loan payable, net		189,360		191,998

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands of dollars)	2020			2019			2020			2019
Summarized statement of operations information
Revenue	$	6,596		$	8,006		$	21,243		$	24,589
Property operating expenses		(1,984	)		(2,138	)		(6,568	)		(6,351	)
Interest expense		(1,944	)		(2,027	)		(5,803	)		(6,055	)
Net income		1,864			3,059			6,402			9,768
PREIT’s share of equity in income of partnership		932			1,529			3,201			4,884

FDP

(in thousands of dollars)	September 30, 2020		December 31, 2019
Summarized balance sheet information
Total assets	$	725,087	$	641,377
FDP Term Loan, net		299,575		299,091

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands of dollars)	2020			2019			2020			2019
Summarized statement of operations information
Revenue	$	4,763		$	1,271		$	15,276		$	2,667
Property operating expenses		(6,228	)		(1,901	)		(14,305	)		(3,100	)
Interest expense		(933	)		(2	)		(2,137	)		(2	)
Net loss		(9,365	)		(2,553	)		(16,304	)		(4,879	)
PREIT’s share of equity in loss of partnership		(4,690	)		(1,262	)		(8,164	)		(2,299	)