Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 25, 2016 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PEI | |
Entity Registrant Name | PENNSYLVANIA REAL ESTATE INVESTMENT TRUST | |
Entity Central Index Key | 77,281 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 69,515,348 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
INVESTMENTS IN REAL ESTATE, at cost: | ||
Operating properties | $ 3,259,774 | $ 3,297,520 |
Construction in progress | 85,877 | 64,019 |
Land held for development | 5,904 | 6,350 |
Total investments in real estate | 3,351,555 | 3,367,889 |
Accumulated depreciation | (1,057,857) | (1,015,647) |
Net investments in real estate | 2,293,698 | 2,352,242 |
INVESTMENTS IN PARTNERSHIPS, at equity: | 161,450 | 161,029 |
OTHER ASSETS: | ||
Cash and cash equivalents | 16,841 | 22,855 |
Tenant and other receivables (net of allowance for doubtful accounts of $7,239 and $6,417 at June 30, 2016 and December 31, 2015, respectively) | 30,591 | 40,324 |
Intangible assets (net of accumulated amortization of $9,872 and $13,441 at June 30, 2016 and December 31, 2015, respectively) | 21,075 | 22,248 |
Deferred costs and other assets, net | 84,276 | 75,450 |
Total assets | 2,631,382 | 2,800,392 |
LIABILITIES: | ||
Mortgage loans payable | 1,231,709 | 1,321,331 |
Long-term Debt | 396,688 | 398,040 |
Revolving Facility | 85,000 | 65,000 |
Tenants’ deposits and deferred rent | 17,476 | 14,631 |
Distributions in excess of partnership investments | 63,188 | 65,547 |
Fair value of derivative liabilities | 10,254 | 2,756 |
Accrued expenses and other liabilities | 78,342 | 78,539 |
Total liabilities | 1,883,149 | 2,015,762 |
COMMITMENTS AND CONTINGENCIES (Note 6): | ||
EQUITY: | ||
Shares of beneficial interest, $1.00 par value per share; 200,000 shares authorized; issued and outstanding 69,474 shares at June 30, 2016 and 69,197 shares at December 31, 2015 | 69,474 | 69,197 |
Capital contributed in excess of par | 1,477,808 | 1,476,397 |
Accumulated other comprehensive loss | (11,629) | 4,193 |
Distributions in excess of net income | (939,407) | (912,221) |
Total equity—Pennsylvania Real Estate Investment Trust | 596,327 | 629,261 |
Noncontrolling interest | 151,906 | 155,369 |
Total equity | 748,233 | 784,630 |
Total liabilities and equity | 2,631,382 | 2,800,392 |
Assets Held-for-sale, Not Part of Disposal Group, Current | 23,451 | 126,244 |
Real Estate Liabilities Associated with Assets Held for Development and Sale | 492 | 69,918 |
Series A Preferred Shares [Member] | ||
EQUITY: | ||
Preferred Shares | 46 | 46 |
Series B Preferred Shares [Member] | ||
EQUITY: | ||
Preferred Shares | $ 35 | $ 35 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Tenant and other receivables, allowance for doubtful accounts | $ 7,239,000 | $ 6,417,000 |
Intangible assets, accumulated amortization | $ 9,872,000 | $ 13,441,000 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 69,474,000 | 69,197,000 |
Common stock, shares outstanding | 69,474,000 | 69,197,000 |
Series A Preferred Shares [Member] | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 25,000,000 | 25,000,000 |
Preferred shares, issued | 4,600,000 | 4,600,000 |
Preferred shares, outstanding | 4,600,000 | 4,600,000 |
Liquidation preference | $ 115,000,000 | $ 115,000,000 |
Series B Preferred Shares [Member] | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 25,000,000 | 25,000,000 |
Preferred shares, issued | 3,450,000 | 3,450,000 |
Preferred shares, outstanding | 3,450,000 | 3,450,000 |
Liquidation preference | $ 86,250,000 | $ 86,250,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 425 | 493 | |||
Real estate revenue: | |||||
Base rent | $ 61,243 | $ 67,417 | $ 128,236 | $ 131,691 | |
Expense reimbursements | 28,870 | 30,541 | 60,004 | 62,050 | |
Percentage rent | 385 | 322 | 836 | 846 | |
Lease termination revenue | 16 | 25 | 251 | 467 | |
Other real estate revenue | 2,225 | 2,577 | 4,868 | 4,612 | |
Total real estate revenue | 92,739 | 100,882 | 194,195 | 199,666 | |
Other Nonoperating Income | 1,514 | 811 | 2,030 | 2,084 | |
Total revenue | 94,253 | 101,693 | 196,225 | 201,750 | |
Property operating expenses: | |||||
CAM and real estate taxes | (30,496) | (33,263) | (64,685) | (67,069) | |
Utilities | (4,137) | (4,959) | (8,463) | (10,108) | |
Other property operating expenses | (2,899) | (3,792) | (7,495) | (7,988) | |
Cost of Real Estate Revenue | 37,532 | 42,014 | 80,643 | 85,165 | |
General and administrative expenses | (8,883) | (9,126) | (17,469) | (18,070) | |
Provision For Employee Separation Expenses | (658) | 0 | (1,193) | 0 | |
Depreciation and amortization | (31,662) | (36,641) | (65,397) | (69,830) | |
Acquisition costs and other expenses | (243) | (817) | (294) | (5,269) | |
Operating Expenses | 78,978 | 88,598 | 164,996 | 178,334 | |
Interest expense, net | (17,067) | (21,126) | (36,413) | (41,271) | |
Asset Impairment Charges | (14,118) | (28,667) | (14,724) | (34,907) | |
Costs and Expenses | 110,163 | 138,391 | 216,133 | 254,512 | |
Loss before equity in income of partnerships, gains on sales of interests in non operating real estate and gains on sales of real estate | (15,910) | (36,698) | (19,908) | (52,762) | |
Equity in income of partnerships | 4,192 | 2,032 | 8,075 | 4,114 | |
Gain on sale of non operating real estate | 0 | 0 | 9 | 43 | |
Gains (Losses) on Sales of Investment Real Estate | 20,887 | 0 | 22,922 | 0 | |
Net income (loss) | 9,169 | (34,666) | 11,098 | (48,605) | |
Less: net (income) loss attributable to noncontrolling interest | (982) | 3,742 | (1,190) | 4,172 | |
Net income available (loss attributable) to PREIT | 8,187 | (30,924) | 9,908 | (44,433) | |
Less: preferred share dividends | (3,962) | (3,962) | (7,924) | (7,924) | |
Net income available (loss attributable) to PREIT common shareholders | 4,225 | (34,886) | 1,984 | (52,357) | |
Net income (loss) | 9,169 | (34,666) | 11,098 | (48,605) | |
Noncontrolling interest | (982) | 3,742 | (1,190) | 4,172 | |
Dividends on unvested restricted shares | (76) | (79) | (160) | (165) | |
Income (Loss) from Continuing Operations Attributable to Parent | $ 4,149 | $ (34,965) | $ 1,824 | $ (52,522) | |
Basic and diluted earnings (loss) per share: | $ 0.06 | $ (0.51) | $ 0.03 | $ (0.76) | |
Weighted average shares outstanding—basic | 69,091 | 68,753 | 69,032 | 68,660 | |
Effect Of Common Share Equivalents | 68 | [1] | 125 | ||
Weighted average shares outstanding—diluted | 69,159 | 68,753 | 69,157 | 68,660 | |
[1] | The Company had net losses used to calculate earnings per share for the three and six months ended June 30, 2015, therefore, the effects of common share equivalents of 425 and 493 for the three and six months ended June 30, 2015, respectively, are excluded from the calculation of diluted loss per share for these periods because they would be antidilutive. |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - shares shares in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 425 | 493 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Comprehensive income (loss): | ||||
Net income (loss) | $ 9,169 | $ (34,666) | $ 11,098 | $ (48,605) |
Unrealized loss on derivatives | (3,006) | 1,165 | (8,578) | (846) |
Amortization of losses on settled swaps, net of gains | 126 | 238 | 252 | 1,010 |
Total comprehensive income (loss) | 6,289 | (33,263) | 2,772 | (48,441) |
Less: comprehensive (income) loss attributable to noncontrolling interest | (677) | 3,686 | (300) | 4,153 |
Comprehensive income (loss) PREIT | $ 5,612 | $ (29,577) | $ 2,472 | $ (44,288) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands | Total | Shares of Beneficial Interest, $1.00 Par [Member] | Capital Contributed In Excess Of Par [Member] | Accumulated Other Comprehensive Loss [Member] | Distributions in Excess of Net Income [Member] | Non-controlling interest [Member] | Series B [Member] | Series B [Member]Distributions in Excess of Net Income [Member] | Series A [Member] | Series A [Member]Distributions in Excess of Net Income [Member] | Series A Preferred Shares, $25 plus accrued dividends Liquidation Value [Member] | Series B Preferred Shares, $25 plus accrued dividends Liquidation Value [Member] |
Shares Issued Upon Redemption Of Operating Partnership Units | $ 12 | $ 250 | $ (262) | |||||||||
December 31, 2015 at Dec. 31, 2015 | $ 784,630 | 69,197 | 1,476,397 | $ (4,193) | $ (912,221) | 155,369 | $ 46 | $ 35 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 11,098 | 1,190 | ||||||||||
Net Income (Loss), Excluding Portion Attributable to Noncontrolling Interest | 9,908 | |||||||||||
Other comprehensive loss | (8,326) | (7,436) | (890) | |||||||||
Shares issued under employee compensation plans, net of shares retired | (1,505) | 265 | (1,770) | |||||||||
Amortization of deferred compensation | 2,931 | 2,931 | ||||||||||
Distributions paid to common shareholders ($0.42 per share) | (29,170) | (29,170) | ||||||||||
Distributions paid to preferred shareholders | $ (3,180) | $ (3,180) | $ (4,744) | $ (4,744) | ||||||||
Noncontrolling interests: | ||||||||||||
Distributions paid to Operating Partnership unit holders ($0.42 per unit) | (3,501) | (3,501) | ||||||||||
June 30, 2016 at Jun. 30, 2016 | $ 748,233 | $ 69,474 | $ 1,477,808 | $ (11,629) | $ (939,407) | $ 151,906 | $ 46 | $ 35 |
CONSOLIDATED STATEMENTS OF EQU8
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) | 6 Months Ended |
Jun. 30, 2016$ / shares | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.42 |
Series A Preferred Shares [Member] | |
Preferred Stock, Dividends, Per Share, Cash Paid | 1.0312 |
Series B [Member] | |
Preferred Stock, Dividends, Per Share, Cash Paid | $ 0.9218 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Net income (loss) | $ 11,098 | $ (48,605) |
Depreciation | 62,655 | 65,517 |
Amortization | 4,066 | 5,876 |
Straight-line rent adjustments | (1,331) | (740) |
Provision for doubtful accounts | 1,260 | 2,050 |
Amortization of deferred compensation | 2,931 | 3,227 |
Loss on Hedge Ineffectiveness | 143 | 512 |
Gain on sale of non operating real estate | (22,931) | (43) |
Equity in income of partnerships in excess of distributions | (3,606) | (2,212) |
Impairment of assets and expensed project costs | 14,964 | 35,145 |
Change in assets and liabilities: | ||
Net change in other assets | 8,929 | 8,069 |
Net change in other liabilities | 2,102 | (5,870) |
Net cash provided by operating activities | 80,280 | 62,926 |
Cash flows from investing activities: | ||
Investments in consolidated real estate acquisitions | 0 | (319,986) |
Additions to construction in progress | (28,121) | (14,037) |
Investments in real estate improvements | (15,322) | (16,867) |
Proceeds from Sale of Real Estate Held-for-investment | 131,592 | |
Additions to leasehold improvements | (288) | (341) |
Investments in partnerships | (3,953) | (16,194) |
Capitalized leasing costs | (3,016) | (3,228) |
Decrease (increase) in cash escrows | 3,158 | (185) |
Cash distributions from partnerships in excess of equity in income | 4,778 | 2,926 |
Net cash provided by (used in) investing activities | 88,828 | (367,912) |
Cash flows from financing activities: | ||
Proceeds from Issuance of Long-term Debt | 120,000 | |
Proceeds from Lines of Credit | 20,000 | 270,000 |
Proceeds from mortgage loans | 139,000 | 102,044 |
Principal installments on mortgage loans | (8,373) | (10,059) |
Repayments of mortgage loans | (280,327) | (139,137) |
Payment of deferred financing costs | (3,322) | (2,873) |
Dividends paid to common shareholders | (29,170) | (29,031) |
Dividends paid to preferred shareholders | (7,924) | (7,924) |
Distributions paid to Operating Partnership unit holders and noncontrolling interest | (3,501) | (2,198) |
Value of shares of beneficial interest issued | 621 | 706 |
Value of shares retired under equity incentive plans, net of shares issued | (2,126) | (5,655) |
Net cash (used in) provided by financing activities | (175,122) | 295,873 |
Net change in cash and cash equivalents | (6,014) | (9,113) |
Cash and cash equivalents, beginning of period | 22,855 | 40,433 |
Cash and cash equivalents, end of period | $ 16,841 | $ 31,320 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | BASIS OF PRESENTATION Nature of Operations Pennsylvania Real Estate Investment Trust (“PREIT” or the “Company”) prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. Our unaudited consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in PREIT’s Annual Report on Form 10-K for the year ended December 31, 2015. In our opinion, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, the consolidated results of our operations, consolidated statements of other comprehensive income (loss), consolidated statements of equity and our consolidated statements of cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year. PREIT, a Pennsylvania business trust founded in 1960 and one of the first equity real estate investment trusts (“REITs”) in the United States, has a primary investment focus on retail shopping malls located in the eastern half of the United States, primarily in the Mid-Atlantic region. Our portfolio currently consists of a total of 32 properties in 11 states, including 24 operating shopping malls, four other retail properties and four development or redevelopment properties. Two of the development and redevelopment properties are classified as “mixed use” (a combination of retail and other uses), one is classified as “retail” (redevelopment of The Gallery at Market East into the Fashion Outlets of Philadelphia (“Fashion Outlets of Philadelphia”), and one is classified as “other.” The above property counts do not include Washington Crown Center in Washington, Pennsylvania because that property has been classified as “held for sale” as of June 30, 2016. We also classified an office building adjacent to Voorhees Town Center as held for sale as of June 30, 2016. We hold our interest in our portfolio of properties through our operating partnership, PREIT Associates, L.P. (“PREIT Associates” or the “Operating Partnership”). We are the sole general partner of the Operating Partnership and, as of June 30, 2016 , we held an 89.3% controlling interest in the Operating Partnership, and consolidated it for reporting purposes. The presentation of consolidated financial statements does not itself imply that the assets of any consolidated entity (including any special-purpose entity formed for a particular project) are available to pay the liabilities of any other consolidated entity, or that the liabilities of any consolidated entity (including any special-purpose entity formed for a particular project) are obligations of any other consolidated entity. Pursuant to the terms of the partnership agreement of the Operating Partnership, each of the limited partners has the right to redeem such partner’s units of limited partnership interest in the Operating Partnership (“OP Units”) for cash or, at our election, we may acquire such OP Units in exchange for our common shares on a one-for-one basis, in some cases beginning one year following the respective issue dates of the OP Units and in other cases immediately. If all of the outstanding OP Units held by limited partners had been redeemed for cash as of June 30, 2016 , the total amount that would have been distributed would have been $178.6 million , which is calculated using our June 30, 2016 closing price on the New York Stock Exchange of $21.45 per share multiplied by the number of outstanding OP Units held by limited partners, which was 8,326,514 as of June 30, 2016 . We provide management, leasing and real estate development services through two of our subsidiaries: PREIT Services, LLC (“PREIT Services”), which generally develops and manages properties that we consolidate for financial reporting purposes, and PREIT-RUBIN, Inc. (“PRI”), which generally develops and manages properties that we do not consolidate for financial reporting purposes, including properties owned by partnerships in which we own an interest and properties that are owned by third parties in which we do not have an interest. PREIT Services and PRI are consolidated. PRI is a taxable REIT subsidiary, as defined by federal tax laws, which means that it is able to offer an expanded menu of services to tenants without jeopardizing our continuing qualification as a REIT under federal tax law. We evaluate operating results and allocate resources on a property-by-property basis, and do not distinguish or evaluate our consolidated operations on a geographic basis. Due to the nature of our operating properties, which involve retail shopping, we have concluded that our individual properties have similar economic characteristics and meet all other aggregation criteria. Accordingly, we have aggregated our individual properties into one reportable segment. In addition, no single tenant accounts for 10% or more of consolidated revenue, and none of our properties are located outside the United States. Fair Value Fair value accounting applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements. Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, these accounting requirements establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs might include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. We utilize the fair value hierarchy in our accounting for derivatives (Level 2) and financial instruments (Level 2) and in our reviews for impairment of real estate assets (Level 3) and goodwill (Level 3). New Accounting Developments In March 2016, the Financial Accounting Standards Board (the “FASB”) issued guidance intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The new guidance allows for entities to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. In addition, the guidance allows employers to withhold shares to satisfy minimum statutory tax withholding requirements up to the employees’ maximum individual tax rate without causing the award to be classified as a liability. The guidance also stipulates that cash paid by an employer to a taxing authority when directly withholding shares for tax-withholding purposes should be classified as a financing activity on the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is in the process of evaluating the impact of this new guidance. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to record operating and financing leases as assets and liabilities on the balance sheet and lessors to expense costs that are not initial direct leasing costs. This standard will be effective for the first annual reporting period beginning after December 15, 2018. The Company is evaluating the effect that ASU No. 2016-02 will have on its consolidated financial statements and related disclosures. In 2016, the Company adopted Accounting Standards Update (“ASU”) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . The Company evaluated the application of ASU No. 2015-02 and concluded that no change was required to its accounting of its interests in less than wholly owned joint ventures, however, the Operating Partnership now meets the criteria as a variable interest entity. The Company’s significant asset is its investment in the Operating Partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Company’s debt is also an obligation of the Operating Partnership. In March 2015, the FASB issued “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” and “Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which intend to simplify the presentation of debt issuance costs. This guidance provides an amendment to the accounting guidance related to the presentation of debt issuance costs and is effective for fiscal years beginning after December 15, 2015, and we have adopted this guidance as of January 1, 2016. This guidance is applied retrospectively to all prior periods. Under the new guidance, debt issuance costs related to a note shall be reported in the Consolidated Balance Sheets as a direct deduction from the face amount of that note. In this regard, debt issuance costs shall not be classified separately from related debt obligations as a deferred charge. Therefore, as a result of adopting this guidance, the Company reclassified in its Consolidated Balance Sheets $4.2 million of debt issuance costs, net of accumulated amortization, at December 31, 2015, from “Deferred costs and other assets, net” to “Mortgage loans payable,” and $2.0 million of debt issuance costs at December 31, 2015, from “Deferred costs and other assets, net” to “Term loans,” thereby decreasing the carrying value of our recognized debt obligations for presentational purposes. |
Real Estate Activities
Real Estate Activities | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate [Abstract] | |
Real Estate Activities | REAL ESTATE ACTIVITIES Investments in real estate as of June 30, 2016 and December 31, 2015 were comprised of the following: (in thousands of dollars) As of June 30, As of December 31, Buildings, improvements and construction in progress $ 2,836,412 $ 2,847,986 Land, including land held for development 515,143 519,903 Total investments in real estate 3,351,555 3,367,889 Accumulated depreciation (1,057,857 ) (1,015,647 ) Net investments in real estate $ 2,293,698 $ 2,352,242 Capitalization of Costs The following table summarizes our capitalized salaries, commissions, benefits, real estate taxes and interest for the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended (in thousands of dollars) 2016 2015 2016 2015 Development/Redevelopment Activities: Salaries and benefits $ 266 $ 219 $ 541 $ 373 Real estate taxes 6 276 25 276 Interest 668 770 1,370 804 Leasing Activities: Salaries, commissions and benefits 1,279 1,573 3,016 3,228 Dispositions The following table presents our dispositions for the three and six months ended June 30, 2016 : Sale Date Property and Location Description of Real Estate Sold Capitalization Rate Sale Price Gain (in millions) 2016 Activity: June 2016 Street retail located on Walnut and Chestnut Streets, Philadelphia, Pennsylvania Street Retail 3.2 % $ 45.0 $ 20.3 March 2016 Lycoming Mall Pennsdale, Pennsylvania Mall 18.0 % 26.4 0.3 March 2016 Gadsden Mall, Gadsden, Alabama, New River Valley Mall, Christiansburg, Virginia, and Wiregrass Commons Mall, Dothan, Alabama (1) Three Malls (single combined transaction) 17.4 % 66.0 1.6 February 2016 Palmer Park Mall, Easton, Pennsylvania Mall 13.6 % 18.0 0.1 _________________________ (1) In connection with this transaction, we issued a mortgage loan to the buyer for $17.0 million , which is recorded in “Deferred costs and other assets, net” on our consolidated balance sheet. The mortgage loan is secured by Wiregrass Commons Mall, bears interest at the rate of 6.00% per annum and has a maturity date of April 2026. Other Real Estate Activity In June 2016, we sold an operating parcel located at Monroe Retail Center for $2.1 million , and recorded a gain of $0.6 million . In January 2016, we sold a non operating parcel located at Sunrise Plaza for $2.0 million , and recorded no gain or loss on the sale of this parcel. Impairment of Assets In June 2016 we recorded a loss on impairment of assets on Washington Crown Center, in Washington, Pennsylvania of $14.1 million in connection with negotiations with a prospective buyer of the property. In connection with these negotiations, we determined that the holding period of the property was less than previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon the negotiations, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets. In March 2016 we recorded a loss on impairment of assets on an office building located in Voorhees, New Jersey of $0.6 million in connection with negotiations with a prospective buyer of the property. In connection with these negotiations, we determined that the holding period of the property was less than previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon the negotiations, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets. |
Investments in Partnerships
Investments in Partnerships | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Partnerships | INVESTMENTS IN PARTNERSHIPS The following table presents summarized financial information of the equity investments in our unconsolidated partnerships as of June 30, 2016 and December 31, 2015 : (in thousands of dollars) As of June 30, 2016 As of December 31, 2015 ASSETS: Investments in real estate, at cost: Operating properties $ 640,707 $ 636,774 Construction in progress 143,538 126,199 Total investments in real estate 784,245 762,973 Accumulated depreciation (196,458 ) (186,580 ) Net investments in real estate 587,787 576,393 Cash and cash equivalents 30,651 37,362 Deferred costs and other assets, net (1) 38,951 39,890 Total assets 657,389 653,645 LIABILITIES AND PARTNERS’ INVESTMENT: Mortgage loans payable (1) 446,512 440,450 Other liabilities 24,957 30,425 Total liabilities 471,469 470,875 Net investment 185,920 182,770 Partners’ share 95,607 95,165 PREIT’s share 90,313 87,605 Excess investment (2) 7,949 7,877 Net investments and advances $ 98,262 $ 95,482 Investment in partnerships, at equity $ 161,450 $ 161,029 Distributions in excess of partnership investments (63,188 ) (65,547 ) Net investments and advances $ 98,262 $ 95,482 _________________________ (1) The December 31, 2015 balance has been adjusted in connection with the Company's adoption of ASU No. 2015-03 “Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs” (Note 1). (2) Excess investment represents the unamortized difference between our investment and our share of the equity in the underlying net investment in the partnerships. The excess investment is amortized over the life of the properties, and the amortization is included in “Equity in income of partnerships.” We record distributions from our equity investments as cash from operating activities up to an amount equal to the equity in income of partnerships. Amounts in excess of our share of the income in the equity investments are treated as a return of partnership capital and recorded as cash from investing activities. The following table summarizes our share of equity in income of partnerships for the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended (in thousands of dollars) 2016 2015 2016 2015 Real estate revenue $ 27,201 $ 24,356 $ 56,392 $ 50,853 Operating expenses: Property operating expenses (6,908 ) (9,290 ) (17,022 ) (20,052 ) Interest expense (5,384 ) (5,146 ) (10,776 ) (10,441 ) Depreciation and amortization (5,804 ) (5,932 ) (11,527 ) (12,303 ) Total expenses (18,096 ) (20,368 ) (39,325 ) (42,796 ) Net income 9,105 3,988 17,067 8,057 Less: Partners’ share (4,883 ) (1,981 ) (9,099 ) (4,017 ) PREIT’s share 4,222 2,007 7,968 4,040 Amortization of and adjustments to excess investment (30 ) 25 107 74 Equity in income of partnerships $ 4,192 $ 2,032 $ 8,075 $ 4,114 Significant Unconsolidated Subsidiary One of our unconsolidated subsidiaries, Lehigh Valley Associates LP, the owner of the substantial majority of Lehigh Valley Mall, in which we have a 50% partnership interest, met the conditions of significant unconsolidated subsidiaries as of June 30, 2016 . The financial information of this entity is included in the amounts above. Summarized balance sheet information as of June 30, 2016 and December 31, 2015 and summarized statement of operations information for the three and six months ended June 30, 2016 and 2015 for this entity, which is accounted for using the equity method, are as follows: As of (in thousands of dollars) June 30, 2016 December 31, 2015 Summarized balance sheet information Total assets $ 49,228 $ 48,352 Mortgage loan payable 127,719 128,883 Three Months Ended Six Months Ended (in thousands of dollars) 2016 2015 2016 2015 Summarized statement of operations information Revenue $ 9,121 $ 8,960 $ 18,169 $ 17,904 Property operating expenses (1,956 ) (2,537 ) (4,183 ) (5,017 ) Interest expense (1,897 ) (1,931 ) (3,803 ) (3,871 ) Net income 4,727 3,858 8,477 7,319 PREIT’s share of equity in income of partnership 2,197 1,929 4,239 3,659 |
Financing Activity
Financing Activity | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Financing Activity | FINANCING ACTIVITY Credit Agreements We have entered into four credit agreements (collectively, the “Credit Agreements”), as further discussed in our Annual Report on Form 10-K for the year ended December 31, 2015: (1) the 2013 Revolving Facility, (2) the 2014 7-Year Term Loan, (3) the 2014 5-Year Term Loan, and (4) the 2015 5-Year Term Loan. The 2014 7-Year Term Loan, the 2014 5-Year Term Loan and the 2015 5-Year Term Loan are collectively referred to as the “Term Loans.” On June 30, 2016, Pennsylvania Real Estate Investment Trust (“PREIT”), PREIT Associates, L.P. (“PREIT Associates”) and PREIT-RUBIN, Inc. (“PRI” and, collectively with PREIT and PREIT Associates, the “Borrower”) entered into an Amendment (the “Amendment”) to the 2014 7-Year Term Loan. The Amendment increased potential borrowing under the 2014 7-Year Term Loan from $100.0 million to $250.0 million, and expanded the accordion feature of the 2014 7-Year Term Loan from up to $200.0 million to up to $400.0 million. Among other things, the Amendment lowered the interest rates in the applicable pricing grid and extended the termination date from January 7, 2021 to December 29, 2021. Pursuant to the Amendment, amounts borrowed under the 2014 7-Year Term Loan bear interest at a rate between 1.35% and 1.90% per annum, depending on PREIT’s leverage, in excess of LIBOR, which is a reduction from the former range of 1.80% to 2.35%. As of June 30, 2016 , we had borrowed $400.0 million under the Term Loans and $ 85.0 million under the 2013 Revolving Facility (with $7.4 million pledged as collateral for a letter of credit at June 30, 2016 ). Interest expense and the deferred financing fee amortization related to the Credit Agreements for the three and six months ended June 30, 2016 and 2015 was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands of dollars) 2016 2015 2016 2015 2013 Revolving Facility Interest expense $ 782.3 $ 1,326.7 $ 1,472.4 $ 1,707.5 Deferred financing amortization 198.7 613.6 397.5 971.5 Term Loans Interest expense 3,045.0 1,971.5 6,036.9 3,228.7 Deferred financing amortization 120.7 79.1 240.5 155.5 Each of the Credit Agreements contain certain affirmative and negative covenants, which are identical to those contained in the other Credit Agreements, and which are described in detail in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . As of June 30, 2016 , we were in compliance with all financial covenants in the Credit Agreements. Following recent property sales, the net operating income (“NOI”) from our remaining unencumbered properties is at a level such that within the Unencumbered Debt Yield covenant (as described in our Annual Report on Form 10-K for the year ended December 31, 2015 ), the maximum unsecured amount that was available for us to borrow under the 2013 Revolving Facility as of June 30, 2016 was $252.0 million . Amounts borrowed under the Credit Agreements bear interest at the rate specified below per annum, depending on our leverage, in excess of LIBOR, unless and until we receive an investment grade credit rating and provide notice to the administrative agent (the “Rating Date”), after which alternative rates would apply. In determining our leverage (the ratio of Total Liabilities to Gross Asset Value), the capitalization rate used to calculate Gross Asset Value is 6.50% for each property having an average sales per square foot of more than $500 for the most recent period of 12 consecutive months, and (b) 7.50% for any other property. The 2013 Revolving Facility is subject to a facility fee, which is currently 0.25% , depending on leverage, and is recorded in interest expense in the consolidated statements of operations. The following table presents the applicable margin for each level for the Credit Agreements: Applicable Margin Level Ratio of Total Liabilities 2013 Revolving Facility 2014 7-Year Term Loan 2014 5-Year Term Loan 2015 5-Year Term Loan 1 Less than 0.450 to 1.00 1.20% 1.35% 1.35% 1.35% 2 Equal to or greater than 0.450 to 1.00 but less than 0.500 to 1.00 1.25% 1.45% 1.45% 1.45% 3 Equal to or greater than 0.500 to 1.00 but less than 0.550 to 1.00 1.30% (1) 1.60% (1) 1.60% (1) 1.60% (1) 4 Equal to or greater than 0.550 to 1.00 1.55% 1.90% 1.90% 1.90% (1) The rate in effect at June 30, 2016 . Mortgage Loans The carrying values and estimated fair values of mortgage loans based on interest rates and market conditions at June 30, 2016 and December 31, 2015 were as follows: June 30, 2016 December 31, 2015 (in millions of dollars) Carrying Value Fair Value Carrying Value Fair Value Mortgage loans $ 1,231.7 $ 1,241.3 $ 1,321.3 $ 1,323.3 The mortgage loans contain various customary default provisions. As of June 30, 2016 , we were not in default on any of the mortgage loans. Mortgage Loan Activity In April 2016, we entered into a $130.0 million mortgage loan secured by Woodland Mall in Grand Rapids, Michigan. The new mortgage loan bears interest at the rate of 2.00% plus LIBOR, and has a maturity date of April 2021 . The proceeds from the new mortgage loan were used to pay down a portion of the Credit Facility borrowings that were used to repay the previous $141.2 million mortgage loan. In March 2016, we borrowed an additional $9.0 million , lowered the interest rate to 2.35% plus LIBOR, and extended the maturity date to March 2021 on the mortgage loan secured by Viewmont Mall in Scranton, Pennsylvania. In March 2016, we repaid a $79.3 million mortgage loan plus accrued interest secured by Valley Mall in Hagerstown, Maryland using $50.0 million from our 2013 Revolving Facility and the balance from available working capital. In March 2016, we repaid a $32.8 million mortgage loan plus accrued interest secured by Lycoming Mall in Pennsdale, Pennsylvania in connection with the March 2016 sale of the property using proceeds from the sale and available working capital. In March 2016, we repaid a $28.1 million mortgage loan plus accrued interest secured by New River Valley Mall in Christiansburg, Virginia in connection with the March 2016 sale of the property using proceeds from the sale. Interest Rate Risk We follow established risk management policies designed to limit our interest rate risk on our interest bearing liabilities, as further discussed in note 7 to our unaudited consolidated financial statements. |
Cash Flow Information
Cash Flow Information | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | CASH FLOW INFORMATION Cash paid for interest was $33.9 million (net of capitalized interest of $1.4 million ) and $37.3 million (net of capitalized interest of less than $0.8 million ) for the six months ended June 30, 2016 and 2015 , respectively. In our statement of cash flows, we show cash flows on our revolving facility on a net basis. Aggregate borrowings on our 2013 Revolving Facility were $200.0 million and $270.0 million for the six months ended June 30, 2016 and 2015 , respectively. Aggregate paydowns were $180.0 million and $150.0 million for the six months ended June 30, 2016 and 2015 , respectively. In connection with the sale of Gadsden Mall, New River Valley Mall and Wiregrass Commons, we issued a mortgage note to the buyer in the amount of $17.0 million that is secured by Wiregrass Commons Mall. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Contractual Obligations As of June 30, 2016 , we had unaccrued contractual and other commitments related to our capital improvement projects and development projects of $78.7 million , including commitments related to the redevelopment of the Fashion Outlets of Philadelphia, in the form of tenant allowances and contracts with general service providers and other professional service providers. In addition, our operating partnership, PREIT Associates, has jointly and severally guaranteed the obligations of the joint venture we formed with Macerich to develop the Fashion Outlets of Philadelphia to commence and complete a comprehensive redevelopment of that property costing not less than $300.0 million within 48 months after commencement of construction. Provision for Employee Separation Expense In 2016 and 2015, we terminated the employment of certain employees. In connection with the departure of those employees, we recorded $0.7 million and $1.2 million of employee separations expenses, respectively, for the three and six months ended June 30, 2016 . |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES In the normal course of business, we are exposed to financial market risks, including interest rate risk on our interest bearing liabilities. We attempt to limit these risks by following established risk management policies, procedures and strategies, including the use of financial instruments such as derivatives. We do not use financial instruments for trading or speculative purposes. Cash Flow Hedges of Interest Rate Risk Our outstanding derivatives have been designated under applicable accounting authority as cash flow hedges. The effective portion of changes in the fair value of derivatives designated as, and that qualify as, cash flow hedges is recorded in “Accumulated other comprehensive income (loss)” and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. To the extent these instruments are ineffective as cash flow hedges, changes in the fair value of these instruments are recorded in “Interest expense, net.” We recognize all derivatives at fair value as either assets or liabilities in the accompanying consolidated balance sheets. The carrying amount of the derivative assets is reflected in “Deferred costs and other assets, net,” the amount of the associated liabilities is reflected in “Accrued expenses and other liabilities” and the amount of the net unrealized income or loss is reflected in “Accumulated other comprehensive income (loss)” in the accompanying balance sheets. Amounts reported in “Accumulated other comprehensive income (loss)” that are related to derivatives will be reclassified to “Interest expense, net” as interest payments are made on our corresponding debt. During the next 12 months, we estimate that $5.1 million will be reclassified as an increase to interest expense in connection with derivatives. The amortization of these amounts could be accelerated in the event that we repay amounts outstanding on the debt instruments and do not replace them with new borrowings. Interest Rate Swaps As of June 30, 2016 , we had entered into 26 interest rate swap agreements with a weighted average base interest rate of 1.27% on a notional amount of $627.7 million maturing on various dates through February 2021 , and one forward starting interest rate swap agreement with a base interest rate of 1.42% on a notional amount of $48.0 million , which will be effective starting January 2018 and maturing in February 2021 . In July 2016, we entered into an additional interest rate swap agreement with an interest rate of 0.70% on a notional amount of $25.0 million and maturing January 2, 2019 . We entered into these interest rate swap agreements in order to hedge the interest payments associated with our issuances of variable interest rate long term debt. We have assessed the effectiveness of these interest rate swap agreements as hedges at inception and on a quarterly basis. As of June 30, 2016 , except as set forth below, we considered these interest rate swap agreements to be highly effective as cash flow hedges. The interest rate swap agreements are net settled monthly. In March 2016, in connection with the sale of, and repayment of, the mortgage loan secured by Lycoming Mall, we recorded a loss on hedge ineffectiveness of $0.1 million . Accumulated other comprehensive loss as of June 30, 2016 includes a net loss of $1.8 million relating to forward starting swaps that we cash settled in prior years that are being amortized over 10 year periods commencing on the closing dates of the debt instruments that are associated with these settled swaps. The following table summarizes the terms and estimated fair values of our interest rate swap derivative instruments at June 30, 2016 and December 31, 2015 . The notional values provide an indication of the extent of our involvement in these instruments, but do not represent exposure to credit, interest rate or market risks. (in millions of dollars) Notional Value Fair Value at June 30, 2016 (1) Fair Value at December 31, 2015 (1) Interest Rate Effective Date of Forward Starting Swap Maturity Date Interest Rate Swaps $25.0 $ — $ (0.1 ) 1.10 % July 31, 2016 28.1 (0.1 ) (0.2 ) 1.38 % January 2, 2017 33.0 N/A (2) — 3.72 % December 1, 2017 48.0 (0.4 ) (0.1 ) 1.12 % January 1, 2018 7.6 (0.1 ) — 1.00 % January 1, 2018 55.0 (0.5 ) (0.1 ) 1.12 % January 1, 2018 30.0 (0.9 ) (0.5 ) 1.78 % January 2, 2019 20.0 (0.6 ) (0.4 ) 1.78 % January 2, 2019 20.0 (0.6 ) (0.3 ) 1.78 % January 2, 2019 20.0 (0.6 ) (0.3 ) 1.79 % January 2, 2019 20.0 (0.6 ) (0.3 ) 1.79 % January 2, 2019 20.0 (0.6 ) (0.3 ) 1.79 % January 2, 2019 25.0 (0.3 ) — 1.16 % January 2, 2019 25.0 (0.3 ) — 1.16 % January 2, 2019 25.0 (0.3 ) — 1.16 % January 2, 2019 20.0 (0.3 ) — 1.16 % January 2, 2019 20.0 (0.4 ) 0.1 1.23 % June 26, 2020 20.0 (0.4 ) 0.2 1.23 % June 26, 2020 20.0 (0.4 ) 0.2 1.23 % June 26, 2020 20.0 (0.4 ) 0.2 1.23 % June 26, 2020 20.0 (0.4 ) 0.2 1.24 % June 26, 2020 9.0 (0.2 ) N/A 1.19 % February 1, 2021 35.0 (0.3 ) N/A 1.01 % March 1, 2021 35.0 (0.3 ) N/A 1.02 % March 1, 2021 20.0 (0.2 ) N/A 1.01 % March 1, 2021 20.0 (0.2 ) N/A 1.02 % March 1, 2021 20.0 (0.2 ) N/A 1.02 % March 1, 2021 Forward Starting Swap 48.0 (0.7 ) N/A 1.42 % January 2, 2018 February 1, 2021 $ (10.3 ) $ (1.7 ) _________________________ (1) As of June 30, 2016 and December 31, 2015 , derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy and we did not have any significant recurring fair value measurements related to derivative instruments using significant unobservable inputs (Level 3). (2) This interest rate swap was terminated effective March 23, 2016. The table below presents the effect of derivative financial instruments on our consolidated statements of operations and on our share of our partnerships’ statements of operations for the six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended Consolidated Statements of Operations Location (in millions of dollars) 2016 2015 2016 2015 Derivatives in cash flow hedging relationships: Interest rate products Loss recognized in Other Comprehensive Income (Loss) on derivatives $ (4.3 ) $ 0.2 $ (11.0 ) $ (1.6 ) N/A Loss reclassified from Accumulated Other Comprehensive Income (Loss) into income (effective portion) $ 1.4 $ 1.2 $ 2.8 $ 2.3 Interest expense Loss recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) $ — $ — $ (0.1 ) $ (0.5 ) Interest expense Credit-Risk-Related Contingent Features We have agreements with some of our derivative counterparties that contain a provision pursuant to which, if our entity that originated such derivative instruments defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations. As of June 30, 2016 , we were not in default on any of our derivative obligations. We have an agreement with a derivative counterparty that incorporates the loan covenant provisions of our loan agreement with a lender affiliated with the derivative counterparty. Failure to comply with the loan covenant provisions would result in our being in default on any derivative instrument obligations covered by the agreement. As of June 30, 2016 , the fair value of derivatives in a net liability position, which excludes accrued interest but includes any adjustment for nonperformance risk related to these agreements, was $10.3 million . If we had breached any of the default provisions in these agreements as of June 30, 2016 , we might have been required to settle our obligations under the agreements at their termination value (including accrued interest) of $10.9 million . We had not breached any of these provisions as of June 30, 2016 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | BASIS OF PRESENTATION Nature of Operations Pennsylvania Real Estate Investment Trust (“PREIT” or the “Company”) prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. Our unaudited consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in PREIT’s Annual Report on Form 10-K for the year ended December 31, 2015. In our opinion, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, the consolidated results of our operations, consolidated statements of other comprehensive income (loss), consolidated statements of equity and our consolidated statements of cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year. PREIT, a Pennsylvania business trust founded in 1960 and one of the first equity real estate investment trusts (“REITs”) in the United States, has a primary investment focus on retail shopping malls located in the eastern half of the United States, primarily in the Mid-Atlantic region. Our portfolio currently consists of a total of 32 properties in 11 states, including 24 operating shopping malls, four other retail properties and four development or redevelopment properties. Two of the development and redevelopment properties are classified as “mixed use” (a combination of retail and other uses), one is classified as “retail” (redevelopment of The Gallery at Market East into the Fashion Outlets of Philadelphia (“Fashion Outlets of Philadelphia”), and one is classified as “other.” The above property counts do not include Washington Crown Center in Washington, Pennsylvania because that property has been classified as “held for sale” as of June 30, 2016. We also classified an office building adjacent to Voorhees Town Center as held for sale as of June 30, 2016. We hold our interest in our portfolio of properties through our operating partnership, PREIT Associates, L.P. (“PREIT Associates” or the “Operating Partnership”). We are the sole general partner of the Operating Partnership and, as of June 30, 2016 , we held an 89.3% controlling interest in the Operating Partnership, and consolidated it for reporting purposes. The presentation of consolidated financial statements does not itself imply that the assets of any consolidated entity (including any special-purpose entity formed for a particular project) are available to pay the liabilities of any other consolidated entity, or that the liabilities of any consolidated entity (including any special-purpose entity formed for a particular project) are obligations of any other consolidated entity. Pursuant to the terms of the partnership agreement of the Operating Partnership, each of the limited partners has the right to redeem such partner’s units of limited partnership interest in the Operating Partnership (“OP Units”) for cash or, at our election, we may acquire such OP Units in exchange for our common shares on a one-for-one basis, in some cases beginning one year following the respective issue dates of the OP Units and in other cases immediately. If all of the outstanding OP Units held by limited partners had been redeemed for cash as of June 30, 2016 , the total amount that would have been distributed would have been $178.6 million , which is calculated using our June 30, 2016 closing price on the New York Stock Exchange of $21.45 per share multiplied by the number of outstanding OP Units held by limited partners, which was 8,326,514 as of June 30, 2016 . We provide management, leasing and real estate development services through two of our subsidiaries: PREIT Services, LLC (“PREIT Services”), which generally develops and manages properties that we consolidate for financial reporting purposes, and PREIT-RUBIN, Inc. (“PRI”), which generally develops and manages properties that we do not consolidate for financial reporting purposes, including properties owned by partnerships in which we own an interest and properties that are owned by third parties in which we do not have an interest. PREIT Services and PRI are consolidated. PRI is a taxable REIT subsidiary, as defined by federal tax laws, which means that it is able to offer an expanded menu of services to tenants without jeopardizing our continuing qualification as a REIT under federal tax law. We evaluate operating results and allocate resources on a property-by-property basis, and do not distinguish or evaluate our consolidated operations on a geographic basis. Due to the nature of our operating properties, which involve retail shopping, we have concluded that our individual properties have similar economic characteristics and meet all other aggregation criteria. Accordingly, we have aggregated our individual properties into one reportable segment. In addition, no single tenant accounts for 10% or more of consolidated revenue, and none of our properties are located outside the United States. Fair Value Fair value accounting applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements. Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, these accounting requirements establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs might include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. We utilize the fair value hierarchy in our accounting for derivatives (Level 2) and financial instruments (Level 2) and in our reviews for impairment of real estate assets (Level 3) and goodwill (Level 3). New Accounting Developments In March 2016, the Financial Accounting Standards Board (the “FASB”) issued guidance intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The new guidance allows for entities to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. In addition, the guidance allows employers to withhold shares to satisfy minimum statutory tax withholding requirements up to the employees’ maximum individual tax rate without causing the award to be classified as a liability. The guidance also stipulates that cash paid by an employer to a taxing authority when directly withholding shares for tax-withholding purposes should be classified as a financing activity on the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is in the process of evaluating the impact of this new guidance. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to record operating and financing leases as assets and liabilities on the balance sheet and lessors to expense costs that are not initial direct leasing costs. This standard will be effective for the first annual reporting period beginning after December 15, 2018. The Company is evaluating the effect that ASU No. 2016-02 will have on its consolidated financial statements and related disclosures. In 2016, the Company adopted Accounting Standards Update (“ASU”) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . The Company evaluated the application of ASU No. 2015-02 and concluded that no change was required to its accounting of its interests in less than wholly owned joint ventures, however, the Operating Partnership now meets the criteria as a variable interest entity. The Company’s significant asset is its investment in the Operating Partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Company’s debt is also an obligation of the Operating Partnership. In March 2015, the FASB issued “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” and “Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which intend to simplify the presentation of debt issuance costs. This guidance provides an amendment to the accounting guidance related to the presentation of debt issuance costs and is effective for fiscal years beginning after December 15, 2015, and we have adopted this guidance as of January 1, 2016. This guidance is applied retrospectively to all prior periods. Under the new guidance, debt issuance costs related to a note shall be reported in the Consolidated Balance Sheets as a direct deduction from the face amount of that note. In this regard, debt issuance costs shall not be classified separately from related debt obligations as a deferred charge. Therefore, as a result of adopting this guidance, the Company reclassified in its Consolidated Balance Sheets $4.2 million of debt issuance costs, net of accumulated amortization, at December 31, 2015, from “Deferred costs and other assets, net” to “Mortgage loans payable,” and $2.0 million of debt issuance costs at December 31, 2015, from “Deferred costs and other assets, net” to “Term loans,” thereby decreasing the carrying value of our recognized debt obligations for presentational purposes. |
Nature of Operations | Nature of Operations Pennsylvania Real Estate Investment Trust (“PREIT” or the “Company”) prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. Our unaudited consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in PREIT’s Annual Report on Form 10-K for the year ended December 31, 2015. In our opinion, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, the consolidated results of our operations, consolidated statements of other comprehensive income (loss), consolidated statements of equity and our consolidated statements of cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year. PREIT, a Pennsylvania business trust founded in 1960 and one of the first equity real estate investment trusts (“REITs”) in the United States, has a primary investment focus on retail shopping malls located in the eastern half of the United States, primarily in the Mid-Atlantic region. Our portfolio currently consists of a total of 32 properties in 11 states, including 24 operating shopping malls, four other retail properties and four development or redevelopment properties. Two of the development and redevelopment properties are classified as “mixed use” (a combination of retail and other uses), one is classified as “retail” (redevelopment of The Gallery at Market East into the Fashion Outlets of Philadelphia (“Fashion Outlets of Philadelphia”), and one is classified as “other.” The above property counts do not include Washington Crown Center in Washington, Pennsylvania because that property has been classified as “held for sale” as of June 30, 2016. We also classified an office building adjacent to Voorhees Town Center as held for sale as of June 30, 2016. We hold our interest in our portfolio of properties through our operating partnership, PREIT Associates, L.P. (“PREIT Associates” or the “Operating Partnership”). We are the sole general partner of the Operating Partnership and, as of June 30, 2016 , we held an 89.3% controlling interest in the Operating Partnership, and consolidated it for reporting purposes. The presentation of consolidated financial statements does not itself imply that the assets of any consolidated entity (including any special-purpose entity formed for a particular project) are available to pay the liabilities of any other consolidated entity, or that the liabilities of any consolidated entity (including any special-purpose entity formed for a particular project) are obligations of any other consolidated entity. Pursuant to the terms of the partnership agreement of the Operating Partnership, each of the limited partners has the right to redeem such partner’s units of limited partnership interest in the Operating Partnership (“OP Units”) for cash or, at our election, we may acquire such OP Units in exchange for our common shares on a one-for-one basis, in some cases beginning one year following the respective issue dates of the OP Units and in other cases immediately. If all of the outstanding OP Units held by limited partners had been redeemed for cash as of June 30, 2016 , the total amount that would have been distributed would have been $178.6 million , which is calculated using our June 30, 2016 closing price on the New York Stock Exchange of $21.45 per share multiplied by the number of outstanding OP Units held by limited partners, which was 8,326,514 as of June 30, 2016 . We provide management, leasing and real estate development services through two of our subsidiaries: PREIT Services, LLC (“PREIT Services”), which generally develops and manages properties that we consolidate for financial reporting purposes, and PREIT-RUBIN, Inc. (“PRI”), which generally develops and manages properties that we do not consolidate for financial reporting purposes, including properties owned by partnerships in which we own an interest and properties that are owned by third parties in which we do not have an interest. PREIT Services and PRI are consolidated. PRI is a taxable REIT subsidiary, as defined by federal tax laws, which means that it is able to offer an expanded menu of services to tenants without jeopardizing our continuing qualification as a REIT under federal tax law. We evaluate operating results and allocate resources on a property-by-property basis, and do not distinguish or evaluate our consolidated operations on a geographic basis. Due to the nature of our operating properties, which involve retail shopping, we have concluded that our individual properties have similar economic characteristics and meet all other aggregation criteria. Accordingly, we have aggregated our individual properties into one reportable segment. In addition, no single tenant accounts for 10% or more of consolidated revenue, and none of our properties are located outside the United States. |
Fair Value | Fair Value Fair value accounting applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements. Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, these accounting requirements establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs might include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. We utilize the fair value hierarchy in our accounting for derivatives (Level 2) and financial instruments (Level 2) and in our reviews for impairment of real estate assets (Level 3) and goodwill (Level 3). |
New Accounting Developments | New Accounting Developments In March 2016, the Financial Accounting Standards Board (the “FASB”) issued guidance intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The new guidance allows for entities to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. In addition, the guidance allows employers to withhold shares to satisfy minimum statutory tax withholding requirements up to the employees’ maximum individual tax rate without causing the award to be classified as a liability. The guidance also stipulates that cash paid by an employer to a taxing authority when directly withholding shares for tax-withholding purposes should be classified as a financing activity on the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company is in the process of evaluating the impact of this new guidance. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to record operating and financing leases as assets and liabilities on the balance sheet and lessors to expense costs that are not initial direct leasing costs. This standard will be effective for the first annual reporting period beginning after December 15, 2018. The Company is evaluating the effect that ASU No. 2016-02 will have on its consolidated financial statements and related disclosures. In 2016, the Company adopted Accounting Standards Update (“ASU”) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . The Company evaluated the application of ASU No. 2015-02 and concluded that no change was required to its accounting of its interests in less than wholly owned joint ventures, however, the Operating Partnership now meets the criteria as a variable interest entity. The Company’s significant asset is its investment in the Operating Partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Company’s debt is also an obligation of the Operating Partnership. In March 2015, the FASB issued “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” and “Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which intend to simplify the presentation of debt issuance costs. This guidance provides an amendment to the accounting guidance related to the presentation of debt issuance costs and is effective for fiscal years beginning after December 15, 2015, and we have adopted this guidance as of January 1, 2016. This guidance is applied retrospectively to all prior periods. Under the new guidance, debt issuance costs related to a note shall be reported in the Consolidated Balance Sheets as a direct deduction from the face amount of that note. In this regard, debt issuance costs shall not be classified separately from related debt obligations as a deferred charge. Therefore, as a result of adopting this guidance, the Company reclassified in its Consolidated Balance Sheets $4.2 million of debt issuance costs, net of accumulated amortization, at December 31, 2015, from “Deferred costs and other assets, net” to “Mortgage loans payable,” and $2.0 million of debt issuance costs at December 31, 2015, from “Deferred costs and other assets, net” to “Term loans,” thereby decreasing the carrying value of our recognized debt obligations for presentational purposes. |
Real Estate Activities (Tables)
Real Estate Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Real Estate [Abstract] | |
Investments in Real Estate | Investments in real estate as of June 30, 2016 and December 31, 2015 were comprised of the following: (in thousands of dollars) As of June 30, As of December 31, Buildings, improvements and construction in progress $ 2,836,412 $ 2,847,986 Land, including land held for development 515,143 519,903 Total investments in real estate 3,351,555 3,367,889 Accumulated depreciation (1,057,857 ) (1,015,647 ) Net investments in real estate $ 2,293,698 $ 2,352,242 |
Real Estate Capitalized Costs [Table Text Block] | The following table summarizes our capitalized salaries, commissions, benefits, real estate taxes and interest for the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended (in thousands of dollars) 2016 2015 2016 2015 Development/Redevelopment Activities: Salaries and benefits $ 266 $ 219 $ 541 $ 373 Real estate taxes 6 276 25 276 Interest 668 770 1,370 804 Leasing Activities: Salaries, commissions and benefits 1,279 1,573 3,016 3,228 |
Real Estate Activities Disposit
Real Estate Activities Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Dispositions [Abstract] | |
Dispositions [Table Text Block] | Sale Date Property and Location Description of Real Estate Sold Capitalization Rate Sale Price Gain (in millions) 2016 Activity: June 2016 Street retail located on Walnut and Chestnut Streets, Philadelphia, Pennsylvania Street Retail 3.2 % $ 45.0 $ 20.3 March 2016 Lycoming Mall Pennsdale, Pennsylvania Mall 18.0 % 26.4 0.3 March 2016 Gadsden Mall, Gadsden, Alabama, New River Valley Mall, Christiansburg, Virginia, and Wiregrass Commons Mall, Dothan, Alabama (1) Three Malls (single combined transaction) 17.4 % 66.0 1.6 February 2016 Palmer Park Mall, Easton, Pennsylvania Mall 13.6 % 18.0 0.1 |
Investments in Partnerships (Ta
Investments in Partnerships (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Equity Investments | The following table presents summarized financial information of the equity investments in our unconsolidated partnerships as of June 30, 2016 and December 31, 2015 : (in thousands of dollars) As of June 30, 2016 As of December 31, 2015 ASSETS: Investments in real estate, at cost: Operating properties $ 640,707 $ 636,774 Construction in progress 143,538 126,199 Total investments in real estate 784,245 762,973 Accumulated depreciation (196,458 ) (186,580 ) Net investments in real estate 587,787 576,393 Cash and cash equivalents 30,651 37,362 Deferred costs and other assets, net (1) 38,951 39,890 Total assets 657,389 653,645 LIABILITIES AND PARTNERS’ INVESTMENT: Mortgage loans payable (1) 446,512 440,450 Other liabilities 24,957 30,425 Total liabilities 471,469 470,875 Net investment 185,920 182,770 Partners’ share 95,607 95,165 PREIT’s share 90,313 87,605 Excess investment (2) 7,949 7,877 Net investments and advances $ 98,262 $ 95,482 Investment in partnerships, at equity $ 161,450 $ 161,029 Distributions in excess of partnership investments (63,188 ) (65,547 ) Net investments and advances $ 98,262 $ 95,482 _________________________ (1) The December 31, 2015 balance has been adjusted in connection with the Company's adoption of ASU No. 2015-03 “Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs” (Note 1). (2) Excess investment represents the unamortized difference between our investment and our share of the equity in the underlying net investment in the 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 Income of Partnerships | The following table summarizes our share of equity in income of partnerships for the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended (in thousands of dollars) 2016 2015 2016 2015 Real estate revenue $ 27,201 $ 24,356 $ 56,392 $ 50,853 Operating expenses: Property operating expenses (6,908 ) (9,290 ) (17,022 ) (20,052 ) Interest expense (5,384 ) (5,146 ) (10,776 ) (10,441 ) Depreciation and amortization (5,804 ) (5,932 ) (11,527 ) (12,303 ) Total expenses (18,096 ) (20,368 ) (39,325 ) (42,796 ) Net income 9,105 3,988 17,067 8,057 Less: Partners’ share (4,883 ) (1,981 ) (9,099 ) (4,017 ) PREIT’s share 4,222 2,007 7,968 4,040 Amortization of and adjustments to excess investment (30 ) 25 107 74 Equity in income of partnerships $ 4,192 $ 2,032 $ 8,075 $ 4,114 |
Financing Activity (Tables)
Financing Activity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of credit facility interest expense [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, (in thousands of dollars) 2016 2015 2016 2015 2013 Revolving Facility Interest expense $ 782.3 $ 1,326.7 $ 1,472.4 $ 1,707.5 Deferred financing amortization 198.7 613.6 397.5 971.5 Term Loans Interest expense 3,045.0 1,971.5 6,036.9 3,228.7 Deferred financing amortization 120.7 79.1 240.5 155.5 |
Applicable Credit Spread Over Libor at Various Leverage Levels | Applicable Margin Level Ratio of Total Liabilities 2013 Revolving Facility 2014 7-Year Term Loan 2014 5-Year Term Loan 2015 5-Year Term Loan 1 Less than 0.450 to 1.00 1.20% 1.35% 1.35% 1.35% 2 Equal to or greater than 0.450 to 1.00 but less than 0.500 to 1.00 1.25% 1.45% 1.45% 1.45% 3 Equal to or greater than 0.500 to 1.00 but less than 0.550 to 1.00 1.30% (1) 1.60% (1) 1.60% (1) 1.60% (1) 4 Equal to or greater than 0.550 to 1.00 1.55% 1.90% 1.90% 1.90% |
Carrying and Fair Values of Mortgage Loans | The carrying values and estimated fair values of mortgage loans based on interest rates and market conditions at June 30, 2016 and December 31, 2015 were as follows: June 30, 2016 December 31, 2015 (in millions of dollars) Carrying Value Fair Value Carrying Value Fair Value Mortgage loans $ 1,231.7 $ 1,241.3 $ 1,321.3 $ 1,323.3 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | (in millions of dollars) Notional Value Fair Value at June 30, 2016 (1) Fair Value at December 31, 2015 (1) Interest Rate Effective Date of Forward Starting Swap Maturity Date Interest Rate Swaps $25.0 $ — $ (0.1 ) 1.10 % July 31, 2016 28.1 (0.1 ) (0.2 ) 1.38 % January 2, 2017 33.0 N/A (2) — 3.72 % December 1, 2017 48.0 (0.4 ) (0.1 ) 1.12 % January 1, 2018 7.6 (0.1 ) — 1.00 % January 1, 2018 55.0 (0.5 ) (0.1 ) 1.12 % January 1, 2018 30.0 (0.9 ) (0.5 ) 1.78 % January 2, 2019 20.0 (0.6 ) (0.4 ) 1.78 % January 2, 2019 20.0 (0.6 ) (0.3 ) 1.78 % January 2, 2019 20.0 (0.6 ) (0.3 ) 1.79 % January 2, 2019 20.0 (0.6 ) (0.3 ) 1.79 % January 2, 2019 20.0 (0.6 ) (0.3 ) 1.79 % January 2, 2019 25.0 (0.3 ) — 1.16 % January 2, 2019 25.0 (0.3 ) — 1.16 % January 2, 2019 25.0 (0.3 ) — 1.16 % January 2, 2019 20.0 (0.3 ) — 1.16 % January 2, 2019 20.0 (0.4 ) 0.1 1.23 % June 26, 2020 20.0 (0.4 ) 0.2 1.23 % June 26, 2020 20.0 (0.4 ) 0.2 1.23 % June 26, 2020 20.0 (0.4 ) 0.2 1.23 % June 26, 2020 20.0 (0.4 ) 0.2 1.24 % June 26, 2020 9.0 (0.2 ) N/A 1.19 % February 1, 2021 35.0 (0.3 ) N/A 1.01 % March 1, 2021 35.0 (0.3 ) N/A 1.02 % March 1, 2021 20.0 (0.2 ) N/A 1.01 % March 1, 2021 20.0 (0.2 ) N/A 1.02 % March 1, 2021 20.0 (0.2 ) N/A 1.02 % March 1, 2021 Forward Starting Swap 48.0 (0.7 ) N/A 1.42 % January 2, 2018 February 1, 2021 $ (10.3 ) $ (1.7 ) _________________________ (1) As of June 30, 2016 and December 31, 2015 , derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy and we did not have any significant recurring fair value measurements related to derivative instruments using significant unobservable inputs (Level 3). |
Effect of Our Derivative Financial Instruments on Our Consolidated Statements of Operations | The table below presents the effect of derivative financial instruments on our consolidated statements of operations and on our share of our partnerships’ statements of operations for the six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended Consolidated Statements of Operations Location (in millions of dollars) 2016 2015 2016 2015 Derivatives in cash flow hedging relationships: Interest rate products Loss recognized in Other Comprehensive Income (Loss) on derivatives $ (4.3 ) $ 0.2 $ (11.0 ) $ (1.6 ) N/A Loss reclassified from Accumulated Other Comprehensive Income (Loss) into income (effective portion) $ 1.4 $ 1.2 $ 2.8 $ 2.3 Interest expense Loss recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) $ — $ — $ (0.1 ) $ (0.5 ) Interest expense |
Basis of Presentation Nature of
Basis of Presentation Nature of Operations (Details) | 6 Months Ended |
Jun. 30, 2016PropertyState | |
Real Estate Properties [Line Items] | |
Percentage of consolidated revenue having no single tenant | 10.00% |
Number of States in which Entity Operates | State | 11 |
Number of Real Estate Properties | 32 |
Mall [Member] | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | 24 |
Mixed Use Development Property [Member] | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | 2 |
Strip And Power Center [Member] | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | 4 |
Development Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | 4 |
Other Development Property [Member] | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | 1 |
Basis of Presentation Noncontro
Basis of Presentation Noncontrolling interest (Details) $ / shares in Units, $ in Millions | Jun. 30, 2016USD ($)$ / sharesshares |
Noncontrolling Interest [Line Items] | |
Closing share price | $ / shares | $ 21.45 |
Interest in the Operating Partnership | 89.30% |
Redeemable Noncontrolling Interest, Equity, Other, Fair Value | $ | $ 178.6 |
Limited Partners' Capital Account, Units Outstanding | shares | 8,326,514 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2016Segment | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Number of reportable segment | Segment | 1 | |
Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Expense | $ 4.2 | |
Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Expense | $ 2 |
Real Estate Activities - Invest
Real Estate Activities - Investments in Real Estate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Investment [Line Items] | |||||
Buildings, improvements and construction in progress | $ 2,836,412 | $ 2,836,412 | $ 2,847,986 | ||
Land, including land held for development | 515,143 | 515,143 | 519,903 | ||
Total investments in real estate | 3,351,555 | 3,351,555 | 3,367,889 | ||
Accumulated depreciation | (1,057,857) | (1,057,857) | (1,015,647) | ||
Net investments in real estate | 2,293,698 | 2,293,698 | $ 2,352,242 | ||
Gains (Losses) on Sales of Investment Real Estate | $ 20,887 | $ 0 | $ 22,922 | $ 0 |
Real Estate Activities - Summar
Real Estate Activities - Summary of Capitalized Salaries, Commissions and Benefits, Real Estate Taxes and Interest (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Salaries and benefits | Development/Redevelopment Activities [Member] | ||||
Real Estate Capitalized Costs [Line Items] | ||||
Real estate capitalized cost | $ 266 | $ 219 | $ 541 | $ 373 |
Capitalized Real Estate Taxes [Member] | Development/Redevelopment Activities [Member] | ||||
Real Estate Capitalized Costs [Line Items] | ||||
Real estate capitalized cost | 6 | 276 | 25 | |
Interest | Development/Redevelopment Activities [Member] | ||||
Real Estate Capitalized Costs [Line Items] | ||||
Real estate capitalized cost | 668 | 770 | 1,370 | 804 |
Salaries, commissions and benefits | Leasing Activities [Member] | ||||
Real Estate Capitalized Costs [Line Items] | ||||
Real estate capitalized cost | $ 1,279 | $ 1,573 | $ 3,016 | $ 3,228 |
Real Estate Activities Real Est
Real Estate Activities Real Estate Activities - Acquisitions and Dispositions(Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||||||
Repayments of Secured Debt | $ 280,327,000 | $ 139,137,000 | |||||
Deferred costs and other assets, net | $ 84,276,000 | 84,276,000 | $ 75,450,000 | ||||
Gains (Losses) on Sales of Investment Real Estate | 20,887,000 | $ 0 | 22,922,000 | 0 | |||
Gain (Loss) on Sale of Properties | 22,931,000 | 43,000 | |||||
Asset Impairment Charges | $ 14,118,000 | $ 28,667,000 | $ 14,724,000 | $ 34,907,000 | |||
Walnut and Chestnut Street Retail [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Fair Value Inputs, Cap Rate | 3.20% | ||||||
Proceeds from Sale of Real Estate | $ 45,000 | ||||||
Gain Loss On Sale Of Real Estate | 20,300 | ||||||
Lycoming Mall [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Fair Value Inputs, Cap Rate | 18.00% | ||||||
Repayments of Secured Debt | $ 32,800,000 | ||||||
Proceeds from Sale of Real Estate | $ 26,400 | ||||||
Gain Loss On Sale Of Real Estate | $ 300 | ||||||
Gadsden Mall, New River Valley Mall and Wiregrass Commons Mall [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Fair Value Inputs, Cap Rate | 17.40% | ||||||
Proceeds from Sale of Real Estate | $ 66,000 | ||||||
Gain Loss On Sale Of Real Estate | 1,600 | ||||||
Wiregrass Commons [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Loans Receivable with Fixed Rates of Interest | $ 17,000,000 | ||||||
Mortgage Loans on Real Estate, Interest Rate | 6.00% | ||||||
OperatingParcelAtMonroe [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from Sale of Real Estate | 2,100,000 | ||||||
Gain Loss On Sale Of Real Estate | 600,000 | ||||||
Palmer Park Mall [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Fair Value Inputs, Cap Rate | 13.60% | ||||||
Proceeds from Sale of Real Estate | $ 18,000 | ||||||
Gain Loss On Sale Of Real Estate | $ 100 | ||||||
Non Operating Parcel at Sunrise Plaza [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from Sale of Real Estate | 2,000,000 | ||||||
Gain Loss On Sale Of Real Estate | $ 0 |
Real Estate Activities Real E29
Real Estate Activities Real Estate Activities - Impairment of Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Asset Impairments [Line Items] | ||||
Asset Impairment Charges | $ 14,118 | $ 28,667 | $ 14,724 | $ 34,907 |
Impairment of assets and expensed project costs | 14,964 | $ 35,145 | ||
Washington Crown Center [Member] | ||||
Schedule of Asset Impairments [Line Items] | ||||
Impairment of assets and expensed project costs | 14,100 | |||
Voorhees Town Center [Member] | ||||
Schedule of Asset Impairments [Line Items] | ||||
Impairment of assets and expensed project costs | $ 600 |
Investments in Partnerships - S
Investments in Partnerships - Summary of Equity Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Total assets | $ 657,389 | $ 653,645 | |
Investments in real estate, at cost: | |||
Operating properties | 640,707 | 636,774 | |
Construction in progress | 143,538 | 126,199 | |
Total investments in real estate | 784,245 | 762,973 | |
Accumulated depreciation | (196,458) | (186,580) | |
Net investments in real estate | 587,787 | 576,393 | |
Cash and cash equivalents | 30,651 | 37,362 | |
Deferred costs and other assets, net(1) | 38,951 | 39,890 | |
Total assets | 657,389 | 653,645 | |
LIABILITIES AND PARTNERS’ INVESTMENT: | |||
Mortgage loans payable(1) | 446,512 | 440,450 | |
Other liabilities | 24,957 | 30,425 | |
Total liabilities | 471,469 | 470,875 | |
Net investment | 185,920 | 182,770 | |
Partners’ share | 95,607 | 95,165 | |
PREIT’s share | 90,313 | 87,605 | |
Excess investment | [1] | 7,949 | 7,877 |
Net investments and advances | 98,262 | 95,482 | |
Investment in partnerships, at equity | 161,450 | 161,029 | |
Distributions in excess of partnership investments | $ (63,188) | $ (65,547) | |
[1] | Excess investment represents the unamortized difference between our investment and our share of the equity in the underlying net investment in the partnerships. The excess investment is amortized over the life of the properties, and the amortization is included in “Equity in income of partnerships.” |
Investments in Partnerships -31
Investments in Partnerships - Summary of Share of Equity in Income of Partnerships (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||
Real Estate Revenue Net Equity Method Investments | $ 27,201 | $ 24,356 | $ 56,392 | $ 50,853 | |
Total assets | 657,389 | 657,389 | $ 653,645 | ||
Operating expenses: | |||||
Property operating expenses | (6,908) | (9,290) | (17,022) | (20,052) | |
Interest expense | (5,384) | (5,146) | (10,776) | (10,441) | |
Depreciation and amortization | (5,804) | (5,932) | (11,527) | (12,303) | |
Total expenses | (18,096) | (20,368) | (39,325) | (42,796) | |
Net income | 9,105 | 3,988 | 17,067 | 8,057 | |
Less: Partners’ share | (4,883) | (1,981) | (9,099) | (4,017) | |
PREIT’s share | 4,222 | 2,007 | 7,968 | 4,040 | |
Amortization of and adjustments to excess investment | (30) | 25 | 107 | 74 | |
Equity in income of partnerships | $ 4,192 | 2,032 | $ 8,075 | 4,114 | |
Lehigh Valley Associates, LP [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||
Equity Method Investment, Summarized Financial Information, Revenue | $ 9,121 | 8,960 | $ 18,169 | 17,904 | |
Total assets | 49,228 | 49,228 | 48,352 | ||
Equity Method Investment, Summarized Financial Information, Mortgages Payable | 127,719 | 127,719 | $ 128,883 | ||
Equity Method Investment, Summarized Financial Information, Property Operating Expenses | (1,956) | (2,537) | (4,183) | (5,017) | |
Equity Method Investment, Summarized Financial Information, Interest Expense | (1,897) | (1,931) | (3,803) | (3,871) | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 4,727 | 3,858 | 8,477 | 7,319 | |
Equity Method Investment, Summarized Financial Information, Share of Equity in Income of Partnership | $ 2,197 | $ 1,929 | $ 4,239 | $ 3,659 |
Investments in Partnerships Mor
Investments in Partnerships Mortgage Loan Activity Partnerships (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Mortgage loans payable | $ 1,231,709 | $ 1,321,331 |
Financing Activity - Additional
Financing Activity - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Description | We have entered into four credit agreements (collectively, the “Credit Agreements”), as further discussed in our Annual Report on Form 10-K for the year ended December 31, 2015: (1) the 2013 Revolving Facility, (2) the 2014 7-Year Term Loan, (3) the 2014 5-Year Term Loan, and (4) the 2015 5-Year Term Loan. The 2014 7-Year Term Loan, the 2014 5-Year Term Loan and the 2015 5-Year Term Loan are collectively referred to as the “Term Loans.” | ||||
Term Loan Borrowing | $ 400,000,000 | ||||
Maximum Unsecured Borrowing Amount Under Unencumbered Debt Yield Covenant | $ 252,000,000 | 252,000,000 | |||
Sales Per Square Foot | 500 | ||||
Long-term Debt | 396,688,000 | $ 396,688,000 | $ 398,040,000 | ||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Capitalization Rates | 6.50% | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Capitalization Rates | 7.50% | ||||
2013 Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of Credit Outstanding, Amount | 7,400,000 | $ 7,400,000 | |||
Interest Expense, Debt, Excluding Amortization | 782,300 | $ 1,326,700 | 1,472,400 | $ 1,707,500 | |
Non-cash amortization of deferred financing fees | 198,700 | 613,600 | 397,500 | 971,500 | |
Term Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Expense, Debt, Excluding Amortization | 3,045,000 | 1,971,500 | 6,036,900 | 3,228,700 | |
Non-cash amortization of deferred financing fees | $ 120,700 | $ 79,100 | $ 240,500 | $ 155,500 | |
Seven Year Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Description | On June 30, 2016, Pennsylvania Real Estate Investment Trust (“PREIT”), PREIT Associates, L.P. (“PREIT Associates”) and PREIT-RUBIN, Inc. (“PRI” and, collectively with PREIT and PREIT Associates, the “Borrower”) entered into an Amendment (the “Amendment”) to the 2014 7-Year Term Loan. The Amendment increased potential borrowing under the 2014 7-Year Term Loan from $100.0 million to $250.0 million, and expanded the accordion feature of the 2014 7-Year Term Loan from up to $200.0 million to up to $400.0 million. Among other things, the Amendment lowered the interest rates in the applicable pricing grid and extended the termination date from January 7, 2021 to December 29, 2021. Pursuant to the Amendment, amounts borrowed under the 2014 7-Year Term Loan bear interest at a rate between 1.35% and 1.90% per annum, depending on PREIT’s leverage, in excess of LIBOR, which is a reduction from the former range of 1.80% to 2.35%. |
Financing Activity - Applicable
Financing Activity - Applicable Credit Spread Over Libor at Various Leverage Levels (Detail) | 6 Months Ended |
Jun. 30, 2016 | |
Minimum [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Capitalization Rates | 6.50% |
Maximum [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Capitalization Rates | 7.50% |
Ratio One [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2013 Revolving Credit Facility [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.20% |
Ratio One [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2015 Five Year Term Loan [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.35% |
Ratio One [Member] | London Interbank Offered Rate (LIBOR) [Member] | Seven Year Term Loan [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.35% |
Ratio One [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2014 Five Year Term Loan [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.35% |
Ratio Two [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2013 Revolving Credit Facility [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.25% |
Ratio Two [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2015 Five Year Term Loan [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.45% |
Ratio Two [Member] | London Interbank Offered Rate (LIBOR) [Member] | Seven Year Term Loan [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.45% |
Ratio Two [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2014 Five Year Term Loan [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.45% |
Ratio Three [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2013 Revolving Credit Facility [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.30% |
Ratio Three [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2015 Five Year Term Loan [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.60% |
Ratio Three [Member] | London Interbank Offered Rate (LIBOR) [Member] | Seven Year Term Loan [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.60% |
Ratio Three [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2014 Five Year Term Loan [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.60% |
Ratio Four [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2013 Revolving Credit Facility [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.55% |
Ratio Four [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2015 Five Year Term Loan [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.90% |
Ratio Four [Member] | London Interbank Offered Rate (LIBOR) [Member] | Seven Year Term Loan [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.90% |
Ratio Four [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2014 Five Year Term Loan [Member] | |
Schedule Of Maximum Leverage Ratio [Line Items] | |
Stated Interest Rate | 1.90% |
Financing Activity - Carrying a
Financing Activity - Carrying and Fair Values of Mortgage Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Mortgage loans, Carrying Value | $ 1,231,709 | $ 1,321,331 |
Mortgage loans, Fair Value | $ 1,241,300 | $ 1,323,300 |
Financing Activity - Mortgage L
Financing Activity - Mortgage Loan Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Apr. 08, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Mortgage Loan Activity [Line Items] | ||||||
Mortgage loans payable | $ 1,231,709 | $ 1,321,331 | ||||
Repayments of Secured Debt | $ 280,327 | $ 139,137 | ||||
Woodland Mall [Member] | ||||||
Mortgage Loan Activity [Line Items] | ||||||
Mortgage Loans on Real Estate, Face Amount of Mortgages | $ 130,000 | |||||
Stated Interest Rate | 2.00% | |||||
Debt Instrument, Maturity Date | Apr. 8, 2021 | |||||
Viewmont Mall [Member] | ||||||
Mortgage Loan Activity [Line Items] | ||||||
Stated Interest Rate | 2.35% | |||||
Debt Instrument, Maturity Date | Mar. 29, 2021 | |||||
Mortgage Loans on Real Estate, Other Additions | $ 9,000 | |||||
Valley Mall [Member] | ||||||
Mortgage Loan Activity [Line Items] | ||||||
Repayments of Secured Debt | $ 79,300 | |||||
Revolving Facility Debt Used To Repay Mortgage Debt | $ 50,000 | |||||
Lycoming Mall [Member] | ||||||
Mortgage Loan Activity [Line Items] | ||||||
Repayments of Secured Debt | 32,800 | |||||
New River Valley Mall [Member] | ||||||
Mortgage Loan Activity [Line Items] | ||||||
Repayments of Secured Debt | $ 28,100 |
Financing Activity - Mortgage37
Financing Activity - Mortgage Loan Activity Additional Detail (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Apr. 08, 2016 | |
Mortgage Loan Activity [Line Items] | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.42 | |||
Maximum Unsecured Borrowing Amount Under Unencumbered Debt Yield Covenant | $ 252,000 | $ 252,000 | ||
Carrying Value Of Net Losses Associated With Interest Rate Swaps | 1,800 | 1,800 | ||
Derivative, Net Liability Position, Aggregate Fair Value | 10,300 | 10,300 | ||
Assets Needed for Immediate Settlement, Aggregate Fair Value | (10,900) | (10,900) | ||
Repayments of Secured Debt | 280,327 | $ 139,137 | ||
Two Thousand Thirteen Revolving Credit Facility [Member] | ||||
Mortgage Loan Activity [Line Items] | ||||
Letters of Credit Outstanding, Amount | 7,400 | $ 7,400 | ||
Woodland Mall [Member] | ||||
Mortgage Loan Activity [Line Items] | ||||
Mortgage Loans on Real Estate, Face Amount of Mortgages | $ 130,000 | |||
Loans Receivable, Basis Spread on Variable Rate | 2.00% | |||
Repayments of Debt | $ 141,200 |
Cash Flow Information - Additio
Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Other Significant Noncash Transactions [Line Items] | |||
Cash paid for interest | $ 33.9 | $ 37.3 | |
Net of capitalized interest | 1.4 | 0.8 | |
Line of credit facilities gross borrowings | 200 | 270 | |
Line of credit facilities gross repayments | $ 180 | $ 150 | |
Wiregrass Commons [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
Loans Receivable with Fixed Rates of Interest | $ 17 |
Commitments and Contingencies C
Commitments and Contingencies Contractual Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Commitments [Line Items] | ||||
Provision For Employee Separation Expenses | $ 658 | $ 0 | $ 1,193 | $ 0 |
Construction in Progress [Member] | ||||
Other Commitments [Line Items] | ||||
Unaccrued Contractual And Other Commitments | $ 78,700 | $ 78,700 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 13, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 |
Derivative Instruments [Line Items] | ||||
Repayments of Secured Debt | $ 280,327 | $ 139,137 | ||
Estimate increase to interest expense | $ 5,100 | 5,100 | ||
Loss on Fair Value Hedge Ineffectiveness | 100 | |||
Carrying Value Of Net Losses Associated With Interest Rate Swaps | 1,800 | 1,800 | ||
Fair value of derivatives in a net liability position | (10,300) | (10,300) | ||
Termination value | $ 10,900 | $ 10,900 | ||
Interest rate swaps [Member] | ||||
Derivative Instruments [Line Items] | ||||
Number of derivative, interest rate swap agreement | 26 | 26 | ||
Derivative, Weighted average interest rate | 1.27% | 1.27% | ||
Derivative, notional amount | $ 627,700 | $ 627,700 | ||
Interest Rate Swap Member Forward Starting [Member] | ||||
Derivative Instruments [Line Items] | ||||
Number of derivative, interest rate swap agreement | 1 | 1 | ||
Derivative, Weighted average interest rate | 1.42% | 1.42% | ||
Derivative, notional amount | $ 48,000 | $ 48,000 | ||
Maturity Date | Feb. 1, 2021 | |||
Interest Rate Swap Twelve [Member] | ||||
Derivative Instruments [Line Items] | ||||
Maturity Date | Jan. 2, 2019 | |||
Settled Interest Rate Swaps [Member] | ||||
Derivative Instruments [Line Items] | ||||
Amortization Period of Deferred Gain (Loss) on Discontinuation of Fair Value Hedge | 10 years | |||
Subsequent Event [Member] | Interest rate swaps [Member] | ||||
Derivative Instruments [Line Items] | ||||
Derivative, Weighted average interest rate | 0.70% | |||
Derivative, notional amount | $ 25,000 | |||
Maturity Date | Jan. 2, 2019 |
Derivatives - Fair Value of Der
Derivatives - Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2016 | Dec. 31, 2015 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Fair Value at period end | [1] | $ (10.3) | $ (1.7) | ||
Interest Rate Swap One [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | 25 | ||||
Fair Value at period end | [1] | $ 0 | (0.1) | ||
Interest Rate | 1.10% | ||||
Maturity Date | Jul. 31, 2016 | ||||
Interest Rate Swaps Two [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 28.1 | ||||
Fair Value at period end | [1] | $ (0.1) | (0.2) | ||
Interest Rate | 1.38% | ||||
Maturity Date | Jan. 2, 2017 | ||||
Interest Rate Swap Three PY [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | 33 | ||||
Fair Value at period end | [1] | 0 | |||
Interest Rate | 3.72% | ||||
Maturity Date | Dec. 1, 2017 | ||||
Interest Rate Swaps Three [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 48 | (0.1) | [1] | ||
Fair Value at period end | [1] | $ (0.4) | |||
Interest Rate | 1.12% | ||||
Interest Rate Swaps Four [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 7.6 | ||||
Fair Value at period end | [1] | $ (0.1) | 0 | ||
Interest Rate | 1.00% | ||||
Maturity Date | Jan. 1, 2018 | ||||
Interest Rate Swap Five [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 55 | ||||
Fair Value at period end | $ (0.5) | [1] | 0.1 | ||
Interest Rate | 1.12% | ||||
Maturity Date | Jan. 1, 2018 | ||||
Interest Rate Swap Six [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 30 | ||||
Fair Value at period end | $ (0.9) | [1] | 0.5 | ||
Interest Rate | 1.78% | ||||
Maturity Date | Jan. 2, 2019 | ||||
Interest Rate Swap Seven [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ (0.6) | (0.4) | ||
Interest Rate | 1.78% | ||||
Maturity Date | Jan. 2, 2019 | ||||
Interest Rate Swap Eight [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ (0.6) | (0.3) | ||
Interest Rate | 1.78% | ||||
Maturity Date | Jan. 2, 2019 | ||||
Interest Rate Swaps Nine [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ (0.6) | (0.3) | ||
Interest Rate | 1.79% | ||||
Maturity Date | Jan. 2, 2019 | ||||
Interest Rate Swap Ten [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ (0.6) | (0.3) | ||
Interest Rate | 1.79% | ||||
Maturity Date | Jan. 2, 2019 | ||||
Interest Rate Swap Eleven [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ (0.6) | (0.3) | ||
Interest Rate | 1.79% | ||||
Maturity Date | Jan. 2, 2019 | ||||
Interest Rate Swap Twelve [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 25 | ||||
Fair Value at period end | [1] | $ (0.3) | 0 | ||
Interest Rate | 1.16% | ||||
Maturity Date | Jan. 2, 2019 | ||||
Interest Rate Swap Thirteen [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 25 | ||||
Fair Value at period end | [1] | $ 0.3 | 0 | ||
Interest Rate | 1.16% | ||||
Maturity Date | Jan. 2, 2019 | ||||
Interest Rate Swap Fourteen [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 25 | ||||
Fair Value at period end | [1] | $ 0.3 | 0 | ||
Interest Rate | 1.16% | ||||
Maturity Date | Jan. 2, 2019 | ||||
Interest Rate Swap Fifteen [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ 0.3 | 0 | ||
Interest Rate | 1.16% | ||||
Maturity Date | Jan. 2, 2019 | ||||
Interest Rate Swap Sixteen [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ (0.4) | 0.1 | ||
Interest Rate | 1.23% | ||||
Maturity Date | Jun. 26, 2020 | ||||
Interest Rate Swap Seventeen [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ (0.4) | 0.2 | ||
Interest Rate | 1.23% | ||||
Maturity Date | Jun. 26, 2020 | ||||
Interest Rate Swap Eighteen [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ (0.4) | 0.2 | ||
Interest Rate | 1.23% | ||||
Maturity Date | Jun. 26, 2020 | ||||
Interest Rate Swap Nineteen [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ (0.4) | 0.2 | ||
Interest Rate | 1.23% | ||||
Maturity Date | Jun. 26, 2020 | ||||
Interest Rate Swap Twenty [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ (0.4) | $ 0.2 | ||
Interest Rate | 1.24% | ||||
Maturity Date | Jun. 26, 2020 | ||||
Interest Rate Swap Twenty One [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 9 | ||||
Fair Value at period end | [1] | $ (0.2) | |||
Interest Rate | 1.19% | ||||
Maturity Date | Feb. 1, 2021 | ||||
Interest Rate Swap Twenty Three [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 35 | ||||
Fair Value at period end | [1] | $ (0.3) | |||
Interest Rate | 1.016% | ||||
Maturity Date | Mar. 1, 2021 | ||||
Interest Rate Swap Twenty Two [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 35 | ||||
Fair Value at period end | [1] | $ (0.3) | |||
Interest Rate | 1.013% | ||||
Maturity Date | Mar. 1, 2021 | ||||
Interest Rate Forward Starting Swap One [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 48 | ||||
Fair Value at period end | [1] | $ (0.7) | |||
Interest Rate | 1.42% | ||||
DerivativeEffectiveDate | Jan. 2, 2018 | ||||
Maturity Date | Feb. 1, 2021 | ||||
Interest Rate Swap Twenty Six [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ (0.2) | |||
Interest Rate | 1.018% | ||||
Maturity Date | Mar. 1, 2021 | ||||
Interest Rate Swap Twenty Five [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ (0.2) | |||
Interest Rate | 1.016% | ||||
Maturity Date | Mar. 1, 2021 | ||||
Interest Rate Swap Twenty Four [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(in millions of dollars) Notional Value | $ 20 | ||||
Fair Value at period end | [1] | $ (0.2) | |||
Interest Rate | 1.0145% | ||||
Maturity Date | Mar. 1, 2021 | ||||
[1] | As of June 30, 2016 and December 31, 2015, derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy and we did not have any significant recurring fair value measurements related to derivative instruments using significant unobservable inputs (Level 3).(2) This interest rate swap was terminated effective March 23, 2016. |
Derivatives - Effect of Our Der
Derivatives - Effect of Our Derivative Financial Instruments on Our Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivatives in cash flow hedging relationships: | ||||
Loss recognized in Other Comprehensive Income (Loss) on derivatives | $ (4.3) | $ 0.2 | $ (11) | $ (1.6) |
Interest | ||||
Derivatives in cash flow hedging relationships: | ||||
Loss reclassified from Accumulated Other Comprehensive Income (Loss) into income (effective portion) | $ 1.4 | $ 1.2 | 2.8 | 2.3 |
Loss recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) | $ (0.1) | $ (0.5) |