Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 06, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | PENNSYLVANIA REAL ESTATE INVESTMENT TRUST | ||
Entity Central Index Key | 0000077281 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 489.5 | ||
Entity Common Stock, Shares Outstanding | 78,528,350 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 1-6300 | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 23-6216339 | ||
Entity Address, Address Line One | One Commerce Square | ||
Entity Address, Address Line Two | 2005 Market Street, Suite 1000 | ||
Entity Address, City or Town | Philadelphia | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19103 | ||
City Area Code | 215 | ||
Local Phone Number | 875-0700 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission pursuant to regulation 14A relating to its 2020 Annual Meeting of Shareholders are incorporated by reference in Part III of this Form 10-K. | ||
Fair Value Measured at Net Asset Value Per Share [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Shares of Beneficial Interest, par value $1.00 per share | ||
Trading Symbol | PEI | ||
Security Exchange Name | NYSE | ||
Series B Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Series B Preferred Shares, par value $0.01 per share | ||
Trading Symbol | PEIPrB | ||
Security Exchange Name | NYSE | ||
Series C Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Series C Preferred Shares, par value $0.01 per share | ||
Trading Symbol | PEIPrC | ||
Security Exchange Name | NYSE | ||
Series D Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Series D Preferred Shares, par value $0.01 per share | ||
Trading Symbol | PEIPrD | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
INVESTMENTS IN REAL ESTATE, at cost: | ||
Operating properties | $ 3,099,034 | $ 3,063,531 |
Construction in progress | 106,011 | 115,182 |
Land held for development | 5,881 | 5,881 |
Total investments in real estate | 3,210,926 | 3,184,594 |
Accumulated depreciation | (1,202,722) | (1,118,582) |
Net investments in real estate | 2,008,204 | 2,066,012 |
INVESTMENTS IN PARTNERSHIPS, at equity: | 159,993 | 131,124 |
OTHER ASSETS: | ||
Cash and cash equivalents | 12,211 | 18,084 |
Tenant and other receivables (net of allowance for doubtful accounts of $2,845 and $6,597 at December 31, 2019 and 2018, respectively) | 41,261 | 38,914 |
Intangible assets (net of accumulated amortization of $18,248 and $15,543 at December 31, 2019 and 2018, respectively) | 13,404 | 17,868 |
Deferred costs and other assets, net | 103,688 | 110,805 |
Assets held for sale | 12,506 | 22,307 |
Total assets | 2,351,267 | 2,405,114 |
LIABILITIES: | ||
Mortgage loans payable, net | 899,753 | 1,047,906 |
Term Loans, net | 548,025 | 547,289 |
Revolving Facilities | 255,000 | 65,000 |
Tenants’ deposits and deferred rent | 13,006 | 15,400 |
Distributions in excess of partnership investments | 87,916 | 92,057 |
Fair value of derivative instruments | 13,126 | 3,010 |
Accrued expenses and other liabilities | 107,016 | 87,901 |
Total liabilities | 1,923,842 | 1,858,563 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
EQUITY: | ||
Shares of beneficial interest, $1.00 par value per share; 200,000 shares authorized; 77,550 shares issued and outstanding at December 31, 2019 and 70,495 shares issued and outstanding at December 31, 2018 | 77,550 | 70,495 |
Capital contributed in excess of par | 1,766,883 | 1,671,042 |
Accumulated other comprehensive (loss)/income | (12,556) | 5,408 |
Distributions in excess of net income | (1,408,352) | (1,306,318) |
Total equity – Pennsylvania Real Estate Investment Trust | 423,679 | 440,781 |
Noncontrolling interest | 3,746 | 105,770 |
Total equity | 427,425 | 546,551 |
Total liabilities and equity | 2,351,267 | 2,405,114 |
Series B Preferred Shares, $.01 par value per share; 25,000 shares authorized; 3,450 shares issued and outstanding at December 31, 2019 and 2018; liquidation preference of $86,250 | ||
EQUITY: | ||
Preferred Shares | 35 | 35 |
Series C Preferred Shares, $.01 par value per share; 25,000 shares authorized; 6,900 shares issued and outstanding at December 31, 2019 and 2018; liquidation preference of $172,500 | ||
EQUITY: | ||
Preferred Shares | 69 | 69 |
Series D Preferred Shares, $.01 par value per share; 25,000 shares authorized; 5,000 shares issued and outstanding at December 31, 2019 and 2018; liquidation preference of $125,000 | ||
EQUITY: | ||
Preferred Shares | $ 50 | $ 50 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Tenant and other receivables, allowance for doubtful accounts | $ 2,845,000 | $ 6,597,000 |
Intangible assets, accumulated amortization | $ 18,248,000 | $ 15,543,000 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 77,550,000 | 70,495,000 |
Common stock, shares outstanding (in shares) | 77,550,000 | 70,495,000 |
Series B Preferred Stock | ||
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 3,450,000 | 3,450,000 |
Preferred shares, outstanding (in shares) | 3,450,000 | 3,450,000 |
Liquidation preference | $ 86,250,000 | $ 86,250,000 |
Series C Preferred Stock | ||
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 6,900,000 | 6,900,000 |
Preferred shares, outstanding (in shares) | 6,900,000 | 6,900,000 |
Liquidation preference | $ 172,500,000 | $ 172,500,000 |
Series D Preferred Stock | ||
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 5,000,000 | 5,000,000 |
Preferred shares, outstanding (in shares) | 5,000,000 | 5,000,000 |
Liquidation preference | $ 125,000,000 | $ 125,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Real estate revenue: | ||||
Lease revenue | $ 302,311 | $ 324,829 | $ 325,010 | |
Expense reimbursements | 19,979 | 21,322 | 22,468 | |
Other real estate revenue | 12,668 | 12,078 | 14,046 | |
Total real estate revenue | 334,958 | 358,229 | 361,524 | |
Other income | 1,834 | 4,171 | 5,966 | |
Total revenue | 336,792 | 362,400 | 367,490 | |
Property operating expenses: | ||||
CAM and real estate taxes | (113,260) | (113,235) | (111,275) | |
Utilities | (14,733) | (15,990) | (16,151) | |
Other property operating expenses | (8,565) | (12,007) | (12,879) | |
Total property operating expenses | (136,558) | (141,232) | (140,305) | |
Depreciation and amortization | (137,784) | (133,116) | (128,822) | |
General and administrative expenses | (46,010) | (38,342) | (36,736) | |
Provision for employee separation expenses | (3,689) | (1,139) | (1,299) | |
Insurance recoveries, net | 4,362 | 689 | 0 | |
Project costs and other expenses | (284) | (693) | (768) | |
Total operating expenses | (319,963) | (313,833) | (307,930) | |
Interest expense, net | (63,987) | (61,355) | (58,430) | |
Gain on debt extinguishment, net | 24,859 | 0 | 0 | |
Impairment of assets | (1,455) | (137,487) | (55,793) | |
Total expenses | (364,108) | (512,675) | (422,153) | |
Loss before equity in income of partnerships, gain on sales of real estate by equity method investee, gain on sales of real estate, net, gain on sales of interest in non operating real estate, and adjustment to gain on sales of interests in non operating real estate | (27,316) | (150,275) | (54,663) | |
Equity in income of partnerships | 8,289 | 11,375 | 14,367 | |
Gain on sales of real estate by equity method investee | 553 | 2,772 | 6,567 | |
Gain (loss) on sales of real estate, net | 2,744 | 1,722 | (27) | |
Gain on sales of interests in non operating real estate | 2,718 | 8,126 | 1,270 | |
Adjustment to gain on sales of interests in non operating real estate | 12 | (223) | (362) | |
Net loss | (13,000) | (126,503) | (32,848) | |
Less: net loss attributed to noncontrolling interest | 2,128 | 16,174 | 6,895 | |
Net loss attributable to PREIT | (10,872) | (110,329) | (25,953) | |
Less: preferred share dividends | (27,375) | (27,375) | (27,845) | |
Less: loss on redemption on preferred shares | 0 | 0 | (4,103) | |
Net loss attributable to PREIT common shareholders | (38,247) | (137,704) | (57,901) | |
Net loss | (13,000) | (126,503) | (32,848) | |
Noncontrolling interest | 2,128 | 16,174 | 6,895 | |
Preferred share dividends | (27,375) | (27,375) | (27,845) | |
Loss on redemption of preferred shares | 0 | 0 | (4,103) | |
Dividends on unvested restricted shares | (883) | (542) | (372) | |
Net loss used to calculate earnings per share – basic and diluted | $ (39,130) | $ (138,246) | $ (58,273) | |
Basic and diluted loss per share (in dollars per share) | $ (0.52) | $ (1.98) | $ (0.84) | |
Weighted average shares outstanding – basic (in shares) | 75,221 | 69,749 | 69,364 | |
Effect of dilutive common share equivalents (in shares) | [1] | 0 | 0 | 0 |
Weighted average shares outstanding – diluted (in shares) | 75,221 | 69,749 | 69,364 | |
Development Land Parcel | ||||
Property operating expenses: | ||||
Impairment of assets | $ (3,562) | $ 0 | $ 0 | |
[1] | For the years ended December 31, 2019, 2018 and 2017, there were net losses allocable to common shareholders, so the effect of common share equivalents of 452, 203 and 93 for the years ended December 31, 2019, 2018 and 2017, respectively, is excluded from the calculation of diluted loss per share, as their inclusion would be anti-dilutive. |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 452 | 203 | 93 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Comprehensive loss: | |||
Net loss | $ (13,000) | $ (126,503) | $ (32,848) |
Unrealized (loss) gain on derivatives | (18,937) | (2,755) | 5,415 |
Amortization of losses on settled swaps, net of gains | 85 | 721 | 859 |
Total comprehensive loss | (31,852) | (128,537) | (26,574) |
Less: Comprehensive loss attributable to noncontrolling interest | 3,016 | 16,390 | 6,225 |
Comprehensive loss attributable to PREIT | $ (28,836) | $ (112,147) | $ (20,349) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Shares of Beneficial Interest, $1.00 Par | Capital Contributed in Excess of Par | Accumulated Other Comprehensive Income (Loss) | Distributions in Excess of Net Income | Non- controlling interest | Series A Preferred Stock | Series A Preferred StockPreferred Shares $.01 par | Series A Preferred StockDistributions in Excess of Net Income | Series B Preferred Stock | Series B Preferred StockPreferred Shares $.01 par | Series B Preferred StockDistributions in Excess of Net Income | Series C Preferred Stock | Series C Preferred StockPreferred Shares $.01 par | Series C Preferred StockDistributions in Excess of Net Income | Series D Preferred Stock | Series D Preferred StockPreferred Shares $.01 par | Series D Preferred StockDistributions in Excess of Net Income |
Beginning balance at Dec. 31, 2016 | $ 702,406 | $ 69,553 | $ 1,481,787 | $ 1,622 | $ (993,359) | $ 142,722 | $ 46 | $ 35 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net loss | (32,848) | (25,953) | (6,895) | |||||||||||||||
Other comprehensive income | 6,274 | 5,604 | 670 | |||||||||||||||
Preferred shares issued in Series C and D preferred share offerings, net | 286,848 | 286,729 | $ 69 | $ 50 | ||||||||||||||
Preferred Shares redeemed | (115,000) | (110,851) | (4,103) | $ (46) | ||||||||||||||
Amortization of deferred compensation | 5,709 | 5,709 | ||||||||||||||||
Shares issued upon redemption of Operating Partnership Units | 39 | 375 | (414) | |||||||||||||||
Shares issued under employee compensation plan, net of shares retired | 608 | 391 | 217 | |||||||||||||||
Dividends paid to preferred shareholders | $ (7,827) | $ (7,827) | $ (6,361) | $ (6,361) | $ (10,971) | $ (10,971) | $ (2,244) | $ (2,244) | ||||||||||
Dividends paid to common shareholders ($0.84 per share) | (58,651) | (58,651) | ||||||||||||||||
Noncontrolling interests: | ||||||||||||||||||
Distributions paid to Operating Partnership unit holders ($0.84 per unit) | (6,970) | (6,970) | ||||||||||||||||
Other contributions from noncontrolling interest, net | 18 | 18 | ||||||||||||||||
Ending Balance at Dec. 31, 2017 | 760,991 | 69,983 | 1,663,966 | 7,226 | (1,109,469) | 129,131 | 35 | 69 | 50 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net loss | (126,503) | (110,329) | (16,174) | |||||||||||||||
Other comprehensive income | (2,034) | (1,818) | (216) | |||||||||||||||
Amortization of deferred compensation | 6,925 | 6,925 | ||||||||||||||||
Shares issued under employee compensation plan, net of shares retired | 663 | 512 | 151 | |||||||||||||||
Dividends paid to preferred shareholders | (6,361) | (6,361) | (12,420) | (12,420) | (8,594) | (8,594) | ||||||||||||
Dividends paid to common shareholders ($0.84 per share) | (59,145) | (59,145) | ||||||||||||||||
Noncontrolling interests: | ||||||||||||||||||
Distributions paid to Operating Partnership unit holders ($0.84 per unit) | (6,949) | (6,949) | ||||||||||||||||
Other contributions from noncontrolling interest, net | (22) | (22) | ||||||||||||||||
Ending Balance at Dec. 31, 2018 | 546,551 | 70,495 | 1,671,042 | 5,408 | (1,306,318) | 105,770 | 35 | 69 | 50 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net loss | (13,000) | (10,872) | (2,128) | |||||||||||||||
Other comprehensive income | (18,852) | (17,964) | (888) | |||||||||||||||
Amortization of deferred compensation | 6,212 | 6,212 | ||||||||||||||||
Shares issued upon redemption of Operating Partnership Units | 6,250 | 89,736 | (95,986) | |||||||||||||||
Shares issued under employee compensation plan, net of shares retired | 698 | 805 | (107) | |||||||||||||||
Dividends paid to preferred shareholders | $ (6,364) | $ (6,364) | $ (12,419) | $ (12,419) | $ (8,592) | $ (8,592) | ||||||||||||
Dividends paid to common shareholders ($0.84 per share) | (63,787) | (63,787) | ||||||||||||||||
Noncontrolling interests: | ||||||||||||||||||
Distributions paid to Operating Partnership unit holders ($0.84 per unit) | (3,004) | (3,004) | ||||||||||||||||
Other contributions from noncontrolling interest, net | (18) | (18) | ||||||||||||||||
Ending Balance at Dec. 31, 2019 | $ 427,425 | $ 77,550 | $ 1,766,883 | $ (12,556) | $ (1,408,352) | $ 3,746 | $ 35 | $ 69 | $ 50 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common stock, dividend per share paid (in dollars per share) | $ 0.84 | $ 0.84 | $ 0.84 |
Distributions paid to Operating Partnership unit holders | 0.84 | 0.84 | 0.84 |
Preferred shares, par value (in dollars per share) | 0.01 | 0.01 | 0.01 |
Common stock, par value (in dollars per share) | 1 | 1 | 1 |
Series A Preferred Stock | |||
Preferred stock, dividends per share paid (in dollars per share) | 1.7016 | ||
Preferred shares, par value (in dollars per share) | 0.01 | 0.01 | 0.01 |
Series B Preferred Stock | |||
Preferred stock, dividends per share paid (in dollars per share) | 1.8436 | 1.8438 | 1.8438 |
Preferred shares, par value (in dollars per share) | 0.01 | 0.01 | 0.01 |
Series C Preferred Stock | |||
Preferred stock, dividends per share paid (in dollars per share) | 1.80 | 1.80 | 1.5900 |
Preferred shares, par value (in dollars per share) | 0.01 | 0.01 | 0.01 |
Series D Preferred Stock | |||
Preferred stock, dividends per share paid (in dollars per share) | 1.719 | 1.719 | 0.4488 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net loss | $ (13,000) | $ (126,503) | $ (32,848) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation | 126,583 | 121,644 | 119,441 |
Amortization | 16,180 | 14,554 | 12,057 |
Straight-line rent adjustments | (5,166) | (1,989) | (2,686) |
Provision for doubtful accounts | 2,461 | 1,763 | |
Non-cash lease termination revenue | (4,200) | ||
Amortization of deferred compensation | 6,212 | 6,925 | 5,709 |
Gain on debt extinguishment, net | (24,859) | 0 | 0 |
Insurance recoveries in excess of property loss | (3,861) | (689) | |
Gain on sale of interests in real estate and non-operating real estate, net | (5,474) | (9,625) | (881) |
Equity in income of partnerships | (8,289) | (11,375) | (14,367) |
Gain on sale of real estate by equity method investee | (553) | (2,772) | (6,567) |
Cash distributions from partnerships | 22,570 | 9,421 | 16,849 |
Amortization of historic tax credits | (829) | (1,768) | |
Impairment of assets | 1,455 | 129,365 | 55,793 |
Impairment of development land parcel | 3,562 | ||
Impairment of mortgage loan receivable | 8,122 | ||
Change in assets and liabilities: | |||
Net change in other assets | (4,191) | (5,998) | (5,652) |
Net change in other liabilities | 223 | 6,352 | (4,752) |
Net cash provided by operating activities | 111,392 | 134,864 | 142,091 |
Cash flows from investing activities: | |||
Investments in consolidated real estate acquisitions | (17,611) | ||
Cash proceeds from sales of real estate | 50,407 | 13,730 | 77,778 |
Cash proceeds from sale of mortgage | 8,000 | ||
Net proceeds from insurance claims related to damage to real estate assets | 6,977 | 700 | |
Cash distributions from partnerships of proceeds from real estate sold | 879 | 19,727 | 30,265 |
Investments in partnerships | (72,939) | (58,112) | (73,434) |
Investments in real estate improvements | (34,260) | (35,170) | (51,949) |
Additions to construction in progress | (113,791) | (75,649) | (116,550) |
Capitalized leasing costs | (568) | (12,022) | (6,066) |
Distribution of financing proceeds from equity method investee | 25,000 | 123,000 | 35,221 |
Additions to leasehold improvements and corporate fixed assets | (1,055) | (160) | (683) |
Net cash used in investing activities | (131,350) | (41,567) | (105,418) |
Cash flows from financing activities: | |||
Net proceeds from issuance of preferred shares | 286,847 | ||
Redemption of Series A Preferred Shares | (115,000) | ||
Borrowings under revolving facilities | 190,000 | 12,000 | 56,000 |
Repayments of mortgage loans and finance lease liabilities | (71,387) | (150,000) | |
Proceeds from mortgage loans | 10,185 | ||
Principal installments on mortgage loans | (17,911) | (18,655) | (17,945) |
Payment of deferred financing costs | (95) | (5,529) | (71) |
Value of shares of beneficial interest issued | 1,256 | 1,410 | 2,085 |
Dividends paid to common shareholders | (63,787) | (59,145) | (58,651) |
Dividends paid to preferred shareholders | (27,375) | (27,375) | (27,403) |
Distributions paid to Operating Partnership unit holders and noncontrolling interest | (3,004) | (6,949) | (6,970) |
Value of shares retired under equity incentive plans, net of shares issued | (556) | (747) | (1,477) |
Net cash provided by (used in) financing activities | 7,141 | (94,805) | (32,585) |
Net change in cash, cash equivalents, and restricted cash | (12,817) | (1,508) | 4,088 |
Cash, cash equivalents, and restricted cash, beginning of period | 32,445 | 33,953 | 29,865 |
Cash, cash equivalents, and restricted cash, end of period | $ 19,628 | $ 32,445 | $ 33,953 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Pennsylvania Real Estate Investment Trust (“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. As of December 31, 2019, our portfolio consists of a total of 26 properties operating in nine states, including 21 shopping malls, four other retail properties and one development property. The property in our portfolio that is classified as under development does not currently have any activity occurring. 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 December 31, 2019, held a 97.5% 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 Operating Partnership’s partnership agreement, each of its 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 date 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 December 31, 2019, the total amount that would have been distributed would have been $10.8 million, which is calculated using our December 31, 2019 closing share price on the New York Stock Exchange of $5.33 multiplied by the number of outstanding OP Units held by limited partners, which was 2,022,635 as of December 31, 2019. 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 additional 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 our consolidated revenue, and none of our properties are located outside the United States. Consolidation We consolidate our accounts and the accounts of the Operating Partnership and other controlled subsidiaries, and we reflect the remaining interest in such entities as noncontrolling interest. All significant intercompany accounts and transactions have been eliminated in consolidation. The operating partnership 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. Going Concern Considerations Under the accounting guidance related to the presentation of financial statements, when preparing financial statements for each annual and interim reporting period, management has the responsibility to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. As a result of the considerations articulated below, we believe there is substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. In applying the accounting guidance, management considered our current financial condition and liquidity sources, including current funds available, forecasted future cash flows and our conditional and unconditional obligations due over the next twelve months. Management specifically considered the following: i) our senior unsecured facility, which includes a revolving facility maturing in 2022 with a balance of $255.0 million as of December 31, 2019 and term loans maturing in 2021 with a balance of $550.0 million as of December 31, 2019; ii) our mortgage loans with varying maturities through 2025 with a principal balance of $901.6 million as of December 31, 2019; iii) the financial covenant compliance requirements of our credit agreements; and (iv) recurring costs of operating our business. The Company anticipates not meeting certain financial covenants applicable under the credit agreements during 2020. The Company plans to continue to work with the lender group to obtain temporary debt covenant relief through September 2020 and then pursue a longer term financing solution prior to the expiration of the initial modification. In addition, the Company plans to execute the sale-leaseback of certain properties, sell certain real estate assets and control certain operational costs . Due to the inherent risks, unknown results and significant uncertainties associated with each of these matters and the direct correlation between these matters and our ability to satisfy our financial obligations that may arise over the applicable twelve month period, we are unable to conclude that it is probable that we will be able to meet our obligations arising within twelve months of the date of issuance of these financial statements under the parameters set forth in this accounting guidance . As a result, management evaluated whether this was mitigated by our approved plans and expectations for the applicable period under the second step of this accounting standard. Our ability to satisfy obligations under our senior unsecured credit facility and mortgage loans, maintain compliance with our debt covenants and fund recurring costs of operations depends primarily on management’s ability to obtain relief from the lender group in regards to debt covenants, execute the sale-leaseback of certain properties, complete the sale of certain real estate assets which will provide cash from those sales, and continue to control operational costs. While controlling operational costs are within management’s control to some extent, executing the sale-leaseback transactions, selling real estate assets, and obtaining relief from the lender group through modified debt covenant requirements involve performance by third parties and therefore cannot be considered probable of occurring. Partnership Investments We account for our investments in partnerships that we do not control using the equity method of accounting. These investments, each of which represents a 25% to 50% noncontrolling ownership interest at December 31, 2019, are recorded initially at our cost, and subsequently adjusted for our share of net equity in income and cash contributions and distributions. We do not control any of these equity method investees for the following reasons: • Except for two properties that we co-manage with our partner, the other entities are managed on a day-to-day basis by one of our other partners as the managing general partner in each of the respective partnerships. In the case of the co-managed properties, all decisions in the ordinary course of business are made jointly. • The managing general partner is responsible for establishing the operating and capital decisions of the partnership, including budgets, in the ordinary course of business. • All major decisions of each partnership, such as the sale, refinancing, expansion or rehabilitation of the property, require the approval of all partners. • Voting rights and the sharing of profits and losses are in proportion to the ownership percentages of each partner. We do not have a direct legal claim to the assets, liabilities, revenues or expenses of the unconsolidated partnerships beyond our rights as an equity owner, in the event of any liquidation of such entity, and our rights as a tenant in common owner of certain unconsolidated properties. We record the earnings from the unconsolidated partnerships using the equity method of accounting in the consolidated statements of operations in the caption entitled “Equity in income of partnerships,” rather than consolidating the results of the unconsolidated partnerships with our results. Changes in our investments in these entities are recorded in the consolidated balance sheet caption entitled “Investment in partnerships, at equity.” In the case of deficit investment balances, such amounts are recorded in “Distributions in excess of partnership investments.” We hold legal title to a property owned by one of our unconsolidated partnerships through a tenancy in common arrangement. For this property, such legal title is held by us and another entity, and each has an undivided interest in title to the property. With respect to this property, under the applicable agreement between us and the other entity with an ownership interest, we and such other entity have joint control because decisions regarding matters such as the sale, refinancing, expansion or rehabilitation of the property require the approval of both us and the other entity owning an interest in the property. Hence, we account for this property like our other unconsolidated partnerships using the equity method of accounting. The balance sheet items arising from the properties appear under the caption “Investments in partnerships, at equity.” For further information regarding our unconsolidated partnerships, see note 3. Statements of Cash Flows We consider all highly liquid short-term investments with a maturity of three months or less at purchase or acquisition to be cash equivalents. At December 31, 2019 and 2018, cash and cash equivalents and restricted cash totaled $19.6 million and $32.4 million, respectively, and included tenant security deposits of $1.8 million and $2.3 million, respectively. Cash paid for interest was $59.4 million, $58.4 million and $55.4 million for the years ended December 31, 2019, 2018 and 2017, respectively, net of amounts capitalized of $7.7 million, $6.4 million and $7.6 million, respectively. The following table provides a summary of cash, cash equivalents, and restricted cash reported within the statement of cash flows as of December 31, 2019, 2018 and 2017. December 31, (in thousands of dollars) 2019 2018 2017 Cash and cash equivalents $ 12,211 $ 18,084 $ 15,348 Restricted cash included in other assets 7,417 14,361 18,605 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 19,628 $ 32,445 $ 33,953 Our restricted cash consists of cash held in escrow by banks for real estate taxes and other purposes. Significant Non-Cash Transactions In the third quarter of 2019, we conveyed Wyoming Valley Mall to the lender of the mortgage loan secured by the property. The loan had a balance of approximately $72.8 million as of the conveyance on September 26, 2019. The conveyance was a non-cash transaction with the exception of $7.5 million of cash and escrow balances which were transferred to the lender. During the second quarter of 2018, we received the building and improvements formerly occupied by one of our tenants as part of the consideration for the termination of that tenant’s lease. We recorded non-cash lease termination income of $4.2 million in connection with this transaction, which we determined was the fair value of the building and improvements. Paydowns of the 2014 5-Year Term Loan and the 2015 5-Year Term Loan of $150.0 million each were made in the year ended December 31, 2018, which were directly paid from the 2018 Term Loan Facility borrowing and are considered to be non-cash transactions. During 2017, a $150.0 million paydown of the 2013 Revolving Facility was made, which was directly paid from an additional borrowing from our 2014 7-Year Term Loan, and is considered to be a non-cash transaction. In our statement of cash flows, we report cash flows on our revolving facilities on a net basis. Aggregate borrowings on our revolving facilities were $229.0 million, $65.0 million and $309.0 million, and aggregate repayments were $39.0 million, $53.0 million and $403.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. Accrued construction costs decreased by $8.5 million in the year ended December 31, 2019, increased by $15.7 million in the year ended December 31, 2018 and decreased by $8.3 million in the year ended December 31, 2017, representing non-cash changes in construction in progress. Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates. We believe that our most significant and subjective accounting estimates and assumptions are those relating to asset impairment and fair value. Our management makes complex or subjective assumptions and judgments in applying its critical accounting policies. In making these judgments and assumptions, our management considers, among other factors, events and changes in property, market and economic conditions, estimated future cash flows from property operations, and the risk of loss on specific accounts or amounts. Revenue Recognition We derive over 95% of our revenue from tenant rent and other tenant-related activities. Tenant rent includes base rent, percentage rent, expense reimbursements (such as reimbursements of costs of common area maintenance (“CAM”), real estate taxes and utilities), and the amortization of above-market and below-market lease intangibles (as described below under “Intangible Assets”). On January 1, 2018, we adopted ASC 606, Revenue from Contracts with Customers We record base rent on a straight-line basis, which means that the monthly base rent revenue according to the terms of our leases with our tenants is adjusted so that an average monthly rent is recorded for each tenant over the term of its lease. When tenants vacate prior to the end of their lease, we accelerate amortization of any related unamortized straight-line rent balances, and unamortized above-market and below-market intangible balances are amortized as a decrease or increase to real estate revenue, respectively. The straight-line rent adjustment increased revenue by $1.6 million, $2.0 million, and $2.7 million in the years ended December 31, 2019, 2018 and 2017, respectively. The straight-line rent receivable balances included in tenant and other receivables on the accompanying consolidated balance sheet as of December 31, 2019 and 2018 were $30.4 million and $27.2 million, respectively. Percentage rent represents rental revenue that the tenant pays based on a percentage of its sales, either as a percentage of its total sales or as a percentage of sales over a certain threshold. In the latter case, we do not record percentage rent until the sales threshold has been reached. Revenue for rent received from tenants prior to their due dates is deferred until the period to which the rent applies. In addition to base rent, certain lease agreements contain provisions that require tenants to reimburse a fixed or pro rata share of certain CAM costs, real estate taxes and utilities. Tenants generally make monthly expense reimbursement payments based on a budgeted amount determined at the beginning of the year. Effective January 1, 2019, we recognize fixed CAM revenue prospectively on a straight-line basis. Prior to that, during the year, our income increased or decreased based on actual expense levels and changes in other factors that influenced the reimbursement amounts, such as occupancy levels. As of December 31, 2018, our tenant accounts receivable included accrued income of Certain lease agreements contain co-tenancy clauses that can change the amount of rent or the type of rent that tenants are required to pay, or, in some cases, can allow the tenant to terminate their lease, in the event that certain events take place, such as a decline in property occupancy levels below certain defined levels or the vacating of an anchor store. Co-tenancy clauses do not generally have any retroactive effect when they are triggered. The effect of co-tenancy clauses is applied on a prospective basis to recognize the new rent that is in effect. Payments made to tenants as inducements to enter into a lease are treated as deferred costs that are amortized as a reduction of rental revenue over the term of the related lease. Lease termination fee revenue is recognized in the period when a termination agreement is signed, collectibility is assured, and the tenant has vacated the space. In the event that a tenant is in bankruptcy when the termination agreement is signed, termination fee income is deferred and recognized when it is received. We also generate revenue by providing management services to third parties, including property management, brokerage, leasing and development. Management fees generally are a percentage of managed property revenue or cash receipts. Leasing fees are earned upon the consummation of new leases. Development fees are earned over the time period of the development activity and are recognized on the percentage of completion method. These activities are collectively included in “Other income” in the consolidated statements of operations. Revenue from the reimbursement of marketing expenses is generated through tenant leases that require tenants to reimburse a defined amount of property marketing expenses. Our contractual performance obligations are fulfilled as marketing expenditures are made. Tenant payments are received monthly as required by the respective lease terms. We defer income recognition if the reimbursements exceed the aggregate marketing expenditures made through that date. Deferred marketing reimbursement revenue is recorded in tenants’ deposits and deferred rent on the consolidated balance sheet, and was $0.2 million and $0.2 million as of December 31, 2019 and 2018, respectively. The marketing reimbursements are recognized as revenue at the time that the marketing expenditures occur. Marketing revenue, included in other real estate revenues in the consolidated statements of operations, was $4.1 million, $3.9 million, and $4.4 million and for the years ended December 31, 2019, 2018 and 2017, respectively. Property management revenue from management and development activities is generated through contracts with third party owners of real estate properties or with certain of our joint ventures, and is recorded in other income in the consolidated statement of operations. In the case of management fees, our performance obligations are fulfilled over time as the management services are performed and the associated revenues are recognized on a monthly basis when the customer is billed. In the case of development fees, our performance obligations are fulfilled over time as we perform certain stipulated development activities as set forth in the respective development agreements and the associated revenues are recognized on a monthly basis when the customer is billed. Property management fee revenue was $0.5 million, $0.7 million, and $0.9 million for the years ended December 31, 2019, 2018 and 2017, respectively. Development fee revenue was $0.7 million, $0.8 million, and $0.9 million for the years ended December 31, 2019, 2018 and 2017, respectively. Fair Value Fair value accounting applies to reported balances that are required or permitted to be measured at fair value under relevant accounting authority. 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). Financial Instruments Carrying amounts reported on the consolidated balance sheet for cash and cash equivalents, tenant and other receivables, accrued expenses, other liabilities and the 2018 Revolving Facility approximate fair value due to the short-term nature of these instruments. Most of our variable rate debt is subject to interest rate derivative instruments that have effectively fixed the interest rates on the underlying debt. The estimated fair value for fixed rate debt, which is calculated for disclosure purposes, is based on the borrowing rates available to us for fixed rate mortgage loans with similar terms and maturities. Impairment of Assets Real estate investments and related intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the property might not be recoverable, which is referred to as a “triggering event.” In connection with our review of our long-lived assets for impairment, we utilize qualitative and quantitative factors in order to estimate fair value. The significant qualitative factors that we use include age and condition of the property, market conditions in the property’s trade area, competition with other shopping centers within the property’s trade area and the creditworthiness and performance of the property’s tenants. The significant quantitative factors that we use include historical and forecasted financial and operating information relating to the property, such as net operating income, occupancy statistics, vacancy projections and tenants’ sales levels. Our fair value assumptions relating to real estate assets are within Level 3 of the fair value hierarchy. If there is a triggering event in relation to a property to be held and used, we will estimate the aggregate future cash flows, net of estimated capital expenditures, to be generated by the property, undiscounted and without interest charges. In addition, this estimate may consider a probability weighted cash flow estimation approach when alternative courses of action to recover the carrying amount of a long-lived asset are under consideration or when a range of possible values is estimated. The determination of undiscounted cash flows requires significant estimates by our management, including the expected course of action at the balance sheet date that would lead to such cash flows. Subsequent changes in estimated undiscounted cash flows arising from changes in the anticipated action to be taken with respect to the property could affect the determination of whether an impairment exists, and the effects of such changes could materially affect our net income. If the estimated undiscounted cash flows are less than the carrying value of the property, the carrying value is written down to its fair value. Assessment of our ability to recover certain lease related costs must be made when we have a reason to believe that a tenant might not be able to perform under the terms of the lease as originally expected. This requires us to make estimates as to the recoverability of such costs. An other-than-temporary impairment of an investment in an unconsolidated joint venture is recognized when the carrying value of the investment is not considered recoverable based on evaluation of the severity and duration of the decline in value. To the extent impairment has occurred, the excess carrying value of the asset over its estimated fair value is recorded as a reduction to income. Real Estate Land, buildings, fixtures and tenant improvements are recorded at cost and stated at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to operations as incurred. Renovations or replacements, which improve or extend the life of an asset, are capitalized and depreciated over their estimated useful lives. For financial reporting purposes, properties are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Buildings 20-40 years Land improvements 15 years Furniture/fixtures 3-10 years Tenant improvements Lease term We are required to make subjective assessments as to the useful lives of our real estate assets for purposes of determining the amount of depreciation to reflect on an annual basis with respect to those assets based on various factors, including industry standards, historical experience and the condition of the asset at the time of acquisition. These assessments affect our annual net income. If we were to determine that a different estimated useful life was appropriate for a particular asset, it would be depreciated over the newly estimated useful life, and, other things being equal, result in changes in annual depreciation expense and annual net income. We recognize gains from sales of real estate properties and interests in partnerships when an enforceable contract is in place, control of the asset transfers to a buyer and it is probable that we will collect the consideration due in exchange for transferring the asset. Real Estate Acquisitions We account for our property acquisitions by allocating the purchase price of a property to the property’s assets based on management’s estimates of their fair value. Debt assumed in connection with property acquisitions is recorded at fair value at the acquisition date, and any resulting premium or discount is amortized through interest expense over the remaining term of the debt, resulting in a non-cash decrease (in the case of a premium) or increase (in the case of a discount) in interest expense. The determination of the fair value of intangible assets requires significant estimates by management and considers many factors, including our expectations about the underlying property, the general market conditions in which the property operates and conditions in the economy. The judgment and subjectivity inherent in such assumptions can have a significant effect on the magnitude of the intangible assets or the changes to such assets that we record. Intangible Assets Our intangible assets on the accompanying consolidated balance sheets as of December 31, 2019 and 2018 each included $5.2 million (in each case, net of $1.1 million of amortization expense recognized prior to January 1, 2002) of goodwill recognized in connection with the acquisition of The Rubin Organization in 1997. Approximately $1.5 million of this goodwill balance is allocated to three equity method investees with negative investment balances. Changes in the carrying amount of goodwill for the three years ended December 31, 2019 were as follows: Accumulated (in thousands of dollars) Basis Amortization Total Balance, January 1, 2017 $ 6,322 $ (1,073 ) $ 5,249 Goodwill divested — — — Balance, December 31, 2017 6,322 (1,073 ) 5,249 Goodwill divested — — — Balance, December 31, 2018 6,322 (1,073 ) 5,249 Goodwill divested — — — Balance, December 31, 2019 $ 6,322 $ (1,073 ) $ 5,249 We allocate a portion of the purchase price of a property to intangible assets. Our methodology for this allocation includes estimating an “as-if vacant” fair value of the physical property, which is allocated to land, building and improvements. The difference between the purchase price and the “as-if vacant” fair value is allocated to intangible assets. There are three categories of intangible assets to be considered: (i) value of leases, (ii) above- and below-market value of in-place leases and (iii) customer relationship value, including operating covenants. The value of in-place leases is estimated based on the value associated with the costs avoided in originating leases comparable to the acquired in-place leases, as well as the value associated with lost rental revenue during the assumed lease-up period. The value of in-place leases is amortized as real estate amortization over the remaining lease term. Above-market and below-market in-place lease values for acquired properties are recorded based on the present value of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimates of fair market lease rates for comparable in-place leases, based on factors such as historical experience, recently executed transactions and specific property issues, measured over a period equal to the remaining non-cancelable term of the lease. Above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Below-market lease values are amortized as an increase to rental income over the remaining terms of the respective leases, including any below-market optional renewal periods, and are included in “Accrued expenses and other liabilities” in the consolidated balance sheets. We allocate purchase price to customer relationship intangibles based on management’s assessment of the fa |
Real Estate Activities
Real Estate Activities | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Real Estate Activities | 2. REAL ESTATE ACTIVITIES Investments in real estate as of December 31, 2019 and 2018 were comprised of the following: December 31, (in thousands of dollars) 2019 2018 Buildings, improvements and construction in progress $ 2,753,039 $ 2,719,400 Land, including land held for development 457,887 465,194 Total investments in real estate 3,210,926 3,184,594 Accumulated depreciation (1,202,722 ) (1,118,582 ) Net investments in real estate $ 2,008,204 $ 2,066,012 Impairment of Assets During the years ended December 31, 2019, 2018, and 2017, we recorded asset impairment losses of $5.0 million, $137.5 million, and $55.8 million, respectively. Such impairment losses are recorded in “Impairment of assets” for the years ended 2019, 2018 and 2017. The assets that incurred impairment losses and the amount of such losses are as follows: For the Year Ended December 31, (in thousands of dollars) 2019 2018 2017 Gainesville land 1,464 2,089 1,275 Woodland Mall 2,098 — — Exton Square Mall — 73,218 — Wyoming Valley Mall — 32,177 — Valley View Mall 1,408 14,294 15,521 Wiregrass Mall mortgage loan receivable — 8,122 — New Garden Township land — 7,567 — Logan Valley Mall — — 38,720 Sunrise Plaza land — — 226 Other 47 20 51 Total Impairment of Assets $ 5,017 $ 137,487 $ 55,793 Multiple outparcels and land parcels In November 2019, we entered into an agreement to sell 14 tenant occupied parcels across five properties — Magnolia Mall, Capital City Mall, Woodland Mall, Jacksonville Mall and Valley Mall — for total consideration of $29.9 million. As of December 31, 2019, we completed the dispositions on three outparcels at Capital City Mall and Magnolia Mall for total consideration of $5.2 million. In connection with these sales, we recorded a gain of $2.7 million. Of the remaining outparcels, impairment of assets was recorded for one at Woodland Mall, located in Grand Rapids, Michigan, for $1.5 million. In January 2020, the sale of the outparcel at Woodland Mall was complete. We also entered into two agreements in December 2019 to sell two land parcels at Moorestown Mall, located in Moorestown, New Jersey, and Woodland Mall in 2020. An impairment of $0.6 million was recorded in 2019 for the land value of the parcel at Woodland Mall. Gainesville development land parcel We had an undeveloped land parcel in Gainesville, Florida. In 2018 and 2017, we recorded losses on impairment of assets on the land parcel located in Gainesville, Florida of $2.1 million and $1.3 million, respectively, in connection with negotiations with a potential buyer. In connection with these 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 losses on impairment of assets. In March 2019, we entered into an agreement of sale with a buyer to sell the undeveloped land parcel in Gainesville, Florida for total consideration of $15.0 million Exton Square Mall In connection with the preparation of our annual financial statements for the year ended December 31, 2018, we recorded a loss on impairment of assets on Exton Square Mall in Exton, Pennsylvania of $73.2 million. In conjunction with the preparation of our annual business plan, we anticipated decreases in occupancy and net operating income at this property as a result, which led us to conduct an analysis of possible impairment at this property. Based upon our estimates, 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. Our fair value analysis was based on discounted estimated future cash flows for the mall parcel, using a discount rate of 10.5% and a terminal capitalization rate of 10.0% for the mall parcel, and a direct capitalization rate of 5.5% for a parcel adjacent to the mall. The discount and capitalization rates were determined using management’s assessment of property operating performance and general market conditions and were classified in Level 3 of the fair value hierarchy. Wyoming Valley Mall In connection with the preparation of our financial statements as of and for the quarter ended June 30, 2018, we recorded a loss on impairment of assets on Wyoming Valley Mall in Wilkes-Barre, Pennsylvania of $32.2 million as we determined that the pending closure of two anchor stores at the property (as further discussed in Note 4) was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon our estimates, 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. Our fair value analysis was based on discounted estimated future cash flows at the property, using a discount rate of 10.5% and a terminal capitalization rate of 9.0%, which was determined using management’s assessment of property operating performance and general market conditions and were classified in Level 3 of the fair value hierarchy. Valley View Mall In connection with the preparation of our annual financial statements for the year ended December 31, 2019, we recorded a loss on impairment of assets on Valley View Mall in La Crosse, Wisconsin of $1.4 million. We noted a triggering event as a result of our determination to decrease the holding period of the property to one year. This led to us conduct an analysis of possible impairment at the property. Our fair value analysis was based on a direct capitalization rate of 13.2% for Valley View Mall, which was determined using management’s assessment of property operating performance and general market conditions. In connection with the preparation of our annual financial statements for the year ended December 31, 2018, we recorded a loss on impairment of assets on Valley View Mall in La Crosse, Wisconsin of $14.3 million. In the fourth quarter of 2018, Sears ceased operations at this mall. In conjunction with the preparation of our annual business plan, we anticipated decreases in occupancy and net operating income at this property resulting from lower co-tenancy rents from other tenants in 2019 and beyond, which led us to conduct an analysis of possible impairment at this property. Based upon our estimates, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, based on a probability-weighted assessment were less than the carrying value of the property, and recorded a loss on impairment of assets. Our fair value analysis was based on a direct capitalization rate of 12.0% on stabilized NOI of the property. The capitalization rate was determined using management’s assessment of property operating performance and general market conditions and were classified in Level 3 of the fair value hierarchy. We previously recorded a loss on impairment of assets on Valley View Mall in La Crosse, Wisconsin of $15.5 million in 2017 in connection with our decision to market the property for sale. In connection with this decision, 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 our estimates, 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. Our fair value analysis was based on an estimated capitalization rate of approximately 12.0% for Valley View Mall, which was determined using management’s assessment of property operating performance and general market conditions. Wiregrass Mortgage loan receivable In connection with the sale of three malls in 2016, we received a $17.0 million mortgage note secured by Wiregrass Commons Mall in Dothan, Alabama. The note has a fixed interest rate of 6.0% and we recorded $0.2 million, $1.0 million, and $1.0 million of interest income in the years ended December 31, 2019, 2018 and 2017, respectively. During 2018, the original buyer sold Wiregrass Commons Mall to an unrelated party and the mortgage note was assumed by this new buyer as part of that sale transaction. In the fourth quarter of 2018, we reclassified the mortgage note receivable from held-to-maturity to held-for-sale. In connection with this reclassification, we recorded an impairment loss of $8.1 million to reduce the $16.1 million carrying value of the mortgage note receivable to its estimated fair value of $8.0 million based on negotiations with a buyer. This mortgage note receivable was sold in February 2019 for $8.0 million. New Garden Township development land parcel In 2018, we recorded a loss on impairment of assets on a land parcel located in New Garden Township, Pennsylvania of $7.6 million in connection with negotiations with a potential buyer of the property. In connection with these negotiations, we determined that the estimated proceeds from the sale of the property would be less than the carrying value of the property, and recorded a loss on impairment of assets. As of December 31, 2018, this land parcel was classified as held-for-sale in our consolidated balance sheet. Logan Valley Mall In 2017, we recorded an aggregate loss on impairment of assets on Logan Valley Mall in Altoona, Pennsylvania of $38.7 million in connection with negotiations with the 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. We sold Logan Valley Mall in August 2017. Sunrise Plaza land In 2017, we recorded a loss on impairment of assets on a land parcel located at Sunrise Plaza in Forked River, New Jersey of $0.2 million in connection with negotiations with the 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. Acquisitions In 2018, we purchased certain real estate and related improvements at Moorestown Mall and Valley Mall for a total of $17.6 million. In 2017, we purchased vacant anchor stores from Macy’s located at Moorestown Mall, Valley View Mall and Valley Mall for an aggregate of $13.9 million. We executed a lease with a replacement tenant for the Valley View Mall location and this tenant opened in September 2017 and subsequently closed in the third quarter of 2018. We also have replacement tenants for the Moorestown Mall and Valley Mall former anchors and currently have redevelopment activities at these locations. In connection with the March 2015 acquisition of Springfield Town Center, the previous owner of the property was potentially entitled to receive consideration (the “Earnout”) under the terms of the Contribution Agreement which was to be calculated as of March 31, 2018. The estimated value of the Earnout was zero and no amounts were paid out at or after March 31, 2018. Dispositions The table below presents our dispositions in 2017. There were no dispositions of our mall properties in 2019 and 2018. Proceeds from property sales were used for general corporate purposes, repayment of mortgage loans that secured the properties (if applicable) and repayment of then-outstanding amounts on our Credit Agreements (see note 4), unless otherwise noted. Sale Date Property and Location Description of Real Estate Sold Capitalization Rate Sale Price Gain/ (Loss) (in millions of dollars) 2017 Activity: January Beaver Valley Mall, Monaca, Pennsylvania Mall 15.6% $ 24.2 $ — Crossroads Mall, Beckley, West Virginia Mall 15.5% 24.8 — August Logan Valley Mall, Altoona, Pennsylvania Mall 16.5% 33.2 — Dispositions – Other Activity In 2020, we entered into an agreement of sale for the sale and leaseback of five properties for an estimated total consideration of $153.6 million. Additionally, we entered into agreements of sale for land parcels for anticipated multifamily development for an estimated total consideration of $125.3 million. These agreements are subject to certain conditions and final closing of these sales transactions cannot be assured. In 2019, we entered into an agreement of sale with a buyer to sell an undeveloped land parcel located in Gainesville, Florida for total consideration of $15.0 million and the sale transaction was split into four parcels. The first parcel was sold in March 2019 for $5.0 million. As a result of executing the agreement of sale, we recorded losses on impairment of assets of $1.5 million in the first quarter of 2019. Subsequently, we closed on two parcels in November 2019 and the final parcel closed in December 2019 for an aggregate consideration of $10.0 million. In 2019, we sold an undeveloped land parcel located in New Garden Township, Pennsylvania, for total consideration of $11.0 million, consisting of $8.25 million in cash and $2.75 million of preferred stock. We ascribed no value for accounting purposes to the preferred shares as they are not tradeable, cannot be transferred or sold and have no redemption feature. Up to $1.25 million of the cash consideration received is subject to claw-back if the buyer does not receive entitlements for a stipulated number of housing units, which has been recorded as a liability in our consolidated balance sheet. In connection with this sale, we recorded a gain of $0.2 million. In 2019, we sold an outparcel adjacent to Exton Square Mall where a Whole Foods store is located for total consideration of $22.1 million. In connection with this sale, we recorded a gain of $1.3 million. In 2019, we sold an outparcel located at Valley View Mall in La Crosse, Wisconsin for total consideration of $1.4 million. In connection with this sale, we recorded a gain of $1.2 million. In 2019, we conveyed Wyoming Valley Mall to the lender of the mortgage loan secured by the property. The loan had a balance of approximately $72.8 million as of the conveyance on September 26, 2019. As a result of the transfer, having previously recognized an asset impairment loss of approximately $32.2 million on the value of the property, we wrote off the remaining carrying value of the property of $43.2 million and recorded a net gain on extinguishment of debt of $29.6 million in 2019. In 2018, we sold a parcel located adjacent to Exton Square Mall in Exton, Pennsylvania for $10.3 million. We recorded a gain of $8.1 million on this sale in the fourth quarter of 2018. In 2018, we sold an outparcel on which two operating restaurants are located at Valley Mall in Hagerstown, Maryland. for $2.4 million. We recorded a gain of $1.0 million on this sale in the fourth quarter of 2018. In 2018, we sold an outparcel on which an operating restaurant is located at Magnolia Mall in Florence, South Carolina for $ 1.7 million. We recorded a gain of $0.7 million on this sale in the second quarter of 2018. In 2017, we sold three non operating parcels located at Beaver Valley Mall, Exton Square Mall and Valley Mall for an aggregate of $6.4 million and recorded aggregate gains of $1.3 million on these parcels. Development Activities As of December 31, 2019 and 2018, we had capitalized amounts related to construction and development activities. The following table summarizes certain capitalized construction and development information for our consolidated properties as of December 31, 2019 and 2018: December 31, (in thousands of dollars) 2019 2018 Construction in progress $ 106,011 $ 115,182 Land held for development 5,881 5,881 Deferred costs and other assets 7,274 6,487 Total capitalized construction and development activities $ 119,166 $ 127,550 |
Investments in Partnerships
Investments in Partnerships | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Partnerships | 3. INVESTMENTS IN PARTNERSHIPS The following table presents summarized financial information of our equity investments in unconsolidated partnerships as of December 31, 2019 and 2018: December 31, (in thousands of dollars) 2019 2018 ASSETS: Investments in real estate, at cost: Operating properties $ 883,530 $ 575,149 Construction in progress 251,029 420,771 Total investments in real estate 1,134,559 995,920 Accumulated depreciation (229,877 ) (212,574 ) Net investments in real estate 904,682 783,346 Cash and cash equivalents 34,766 20,446 Deferred costs and other assets, net 43,476 30,549 Total assets 982,924 834,341 LIABILITIES AND PARTNERS’ INVESTMENT: Mortgage loans payable, net 499,057 507,090 FDP Term Loan, net 299,091 247,901 Other liabilities 79,166 34,463 Total liabilities 877,314 789,454 Net investment 105,610 44,887 Partners’ share 50,997 21,583 PREIT’s share 54,613 23,304 Excess investment (1) 17,464 15,763 Net investments and advances $ 72,077 $ 39,067 Investment in partnerships, at equity $ 159,993 $ 131,124 Distributions in excess of partnership investments (87,916 ) (92,057 ) Net investments and advances $ 72,077 $ 39,067 (1) Excess investment represents the unamortized difference between our investment and our share of the equity in the underlying net investment in the unconsolidated partnerships. The excess investment is amortized over the life of the properties, and the amortization is included in “Equity in income of partnerships.” We present distributions from our equity investments using the nature of the distributions approach in the accompanying consolidated statement of cash flows. The following table summarizes our share of equity in income of partnerships for the years ended December 31, 2019, 2018 and 2017: For the Year Ended December 31, (in thousands of dollars) 2019 2018 2017 Real estate revenue $ 99,580 $ 98,781 $ 115,118 Expenses: Property operating and other expenses (34,955 ) (30,839 ) (33,273 ) Interest expense (23,272 ) (23,373 ) (25,251 ) Depreciation and amortization (21,942 ) (19,393 ) (24,872 ) Total expenses (80,169 ) (73,605 ) (83,396 ) Net income 19,411 25,176 31,722 Less: Partners’ share (10,768 ) (13,719 ) (17,607 ) PREIT’s share 8,643 11,457 14,115 Amortization of excess investment (354 ) (82 ) 252 Equity in income of partnerships $ 8,289 $ 11,375 $ 14,367 Dispositions In March 2019, a partnership in which we hold a 25% interest sold an undeveloped land parcel adjacent to Gloucester Premium Outlets for $3.8 million. The partnership recorded a gain on sale of $2.3 million, of which our share was $0.6 million, which is recorded in gain on sale of real estate by equity method investee in the accompanying consolidated statement of operations. In February 2018, a partnership in which we hold a 50% ownership share sold its office condominium interest in 907 Market Street in Philadelphia, Pennsylvania for $41.8 million. The partnership recorded a gain on sale of $5.5 million, of which our share was $2.8 million, which is recorded in gain on sale of real estate by equity method investee in the accompanying consolidated statement of operations. The partnership distributed to us proceeds of $19.7 million in connection with this transaction. In September 2017, a partnership in which we hold a 50% ownership share sold its condominium interest in 801 Market Street in Philadelphia, Pennsylvania for $61.5 million. The partnership recorded a gain on sale of $13.1 million, of which our share was $6.5 million. The partnership distributed to us proceeds of $30.3 million in connection with this transaction in September 2017, which is recorded in gain on sale of real estate by equity method investee in the accompanying consolidated statement of operations. Term Loan In January 2018, our Fashion District Philadelphia redevelopment project joint venture entity entered into a $250.0 million term loan (the “FDP Term Loan”). We and our partner in the project, The Macerich Company (“Macerich”), each own a 50% partnership interest in Fashion District Philadelphia. The FDP Term Loan matures in January 2023, and bears interest at a variable rate of LIBOR plus 2.00%. PREIT and Macerich secured the FDP Term Loan by pledging their respective equity interests in the entities that own Fashion District Philadelphia. The entire $250.0 million available under the FDP Term Loan was drawn during the first quarter of 2018, and we received an aggregate $123.0 million as a distribution of our share of the draws in 2018. In July 2019, the FDP Term Loan was modified to increase the total potential borrowings from $250.0 million to $350.0 million. A total of $51.0 million was drawn during the third quarter of 2019 and we received aggregate distributions of $25.0 million as our share of the draws. Mortgage Loans of Unconsolidated Properties Mortgage loans, which are secured by seven of the unconsolidated properties (including one property under development), are due in installments over various terms extending to the year 2027. Five of the mortgage loans bear interest at a fixed interest rate and two of the mortgage loans bear interest at a variable interest rate. The balances of the fixed interest rate mortgage loans have interest rates that range from 4.06% to 5.56% and had a weighted average interest rate of 4.55% at December 31, 2019. The balances of the variable interest rate mortgage loans have interest rates that range from 3.19% to 4.60% and had a weighted average interest rate of 3.37% at December 31, 2019. The weighted average interest rate of all unconsolidated mortgage loans was 4.43% at December 31, 2019. The liability under each mortgage loan is limited to the unconsolidated partnership that owns the particular property. Our proportionate share, based on our respective partnership interest, of principal payments due in the next five years and thereafter is as follows: Company’s Proportionate Share (in thousands of dollars) For the Year Ending December 31, Principal Amortization Balloon Payments Total Property Total 2020 $ 4,378 $ — $ 4,378 $ 8,801 2021 4,049 41,170 45,219 91,945 2022 3,738 21,500 25,238 93,476 2023 3,620 33,502 37,122 74,244 2024 2,886 — 2,886 5,772 2025 and thereafter 7,213 106,087 113,300 226,601 Total principal payments $ 25,884 $ 202,259 $ 228,143 500,839 Less: Unamortized debt issuance costs 1,782 Carrying value of mortgage notes payable $ 499,057 The following table presents the mortgage loans secured by the unconsolidated properties entered into since January 1, 2017: Financing Date Property Amount Financed or Extended (in millions of dollars) Stated Interest Rate Maturity 2018 Activity: February Pavilion at Market East (1) $ 8.3 LIBOR plus 2.85% February 2021 March Gloucester Premium Outlets (2) $ 86.0 LIBOR plus 1.50% March 2022 2017 Activity: October Lehigh Valley Mall (3)(4) $ 200.0 Fixed 4.06% November 2027 (1) We own a 40% partnership interest in Pavilion at Market East and our share of this mortgage loan is $3.1 million. (2) We own a 25% partnership interest in Gloucester Premium Outlets and our share of this mortgage loan is $21.5 million. (3) The proceeds were used to repay the existing $124.6 million mortgage loan plus accrued interest. We own a 50% partnership interest in Lehigh Valley Mall and our share of this mortgage loan is $96.4 million. (4) We received $35.3 million of proceeds as a distribution in connection with the financing. In connection with this new mortgage loan financing, the unconsolidated entity recorded $3.1 million of prepayment penalty and accelerated the amortization of $0.1 million of unamortized financing costs in the fourth quarter of 2017. Significant Unconsolidated Subsidiary We have a 50% ownership interest in each of Lehigh Valley Associates L.P. (“LVA”) and Fashion District Philadelphia (“FDP”). The financial information of LVA and FDP are included in the amounts above. Summarized balance sheet information as of December 31, 2019, 2018 and 2017, and summarized statement of operations information for the years ended December 31, 2019, 2018 and 2017 for these entities, which are accounted for using the equity method, are as follows: LVA As of or for the year ended December 31, (in thousands of dollars) 2019 2018 2017 Total assets $ 62,504 $ 52,255 $ 43,850 Mortgage payable 191,998 196,328 199,451 Revenue 32,906 35,662 34,945 Property operating expenses 8,448 9,014 9,038 Interest expense 8,055 8,222 10,907 Net income 13,162 15,605 11,389 PREIT’s share of equity in income of partnership 6,581 7,803 5,695 FDP As of or for the year ended December 31, (in thousands of dollars) 2019 2018 2017 Total assets $ 641,377 $ 497,419 $ 428,827 FDP Term Loan, net 299,091 250,000 — Revenue 8,028 4,053 18,708 Property operating expenses 6,995 3,630 6,909 Interest expense 178 126 126 Net income (7,352 ) (4,990 ) 2,436 PREIT’s share of equity in income of partnership (3,676 ) (2,495 ) 1,218 |
Financing Activity
Financing Activity | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Financing Activity | 4. FINANCING ACTIVITY Credit Agreements We have entered into two credit agreements (collectively, as amended, the “Credit Agreements”): (1) the 2018 Credit Agreement, which, as described in more detail below, includes (a) the 2018 Revolving Facility, and (b) the 2018 Term Loan Facility, and (2) the 2014 7-Year Term Loan. The 2018 Term Loan Facility and the 2014 7-Year Term Loan are collectively referred to as the “Term Loans.” As of December 31, 2019, we had borrowed $550.0 million under the Term Loans and $255.0 million under the 2018 Revolving Facility. The carrying value of the Term Loans on our consolidated balance sheet as of December 31, 2019 is net of $2.0 million of unamortized debt issuance costs. The net operating income (“NOI”) from our unencumbered properties is at a level such that within the Unencumbered Debt Yield covenant (as described below) under the Credit Agreements, the maximum unsecured amount that was available to us as of December 31, 2019 was $30.1 million. Interest expense and the deferred financing fee amortization related to the Credit Agreements for the years ended December 31, 2019, 2018 and 2017 were as follows: For the Year Ended December 31, (in thousands of dollars) 2019 2018 2017 Revolving Facilities: Interest expense $7,526 $1,807 $2,463 Deferred financing amortization 1,097 1,052 796 Term Loans: Interest expense 20,922 17,585 14,935 Deferred financing amortization 760 763 759 Accelerated financing fee — 363 — Credit Agreements On May 24, 2018, we entered into an Amended and Restated Credit Agreement (the “2018 Credit Agreement”) with Wells Fargo Bank, National Association, U.S. Bank National Association, Citizens Bank, N.A., and the other financial institutions signatory thereto, for an aggregate $700.0 million senior unsecured facility consisting of (i) a $400 million senior unsecured As of December 31, 2019, $250.0 million was outstanding under the 2014 7-Year Term Loan, which matures on December 29, 2021. On June 5, 2018, we entered into the Fifth Amendment (the “Amendment”) to the 2014 7-Year Term Loan. The Amendment was entered into to make certain provisions of the 2014 7-Year Term Loan consistent with the 2018 Credit Agreement. Among other things, the Amendment (i) adds and updates certain definitions and provisions, including tax-related provisions, relating to foreign lenders under the 2014 7-Year Term Loan, (ii) updates the definition of “Existing Credit Agreement” to refer to the 2018 Credit Agreement, which updates the cross defaults between the 2014 7-Year Term Loan and the 2018 Credit Agreement (replacing such cross defaults to the agreements the 2018 Credit Agreement replaced), (iii) adds and amends provisions consistent with those provided in the 2018 Credit Agreement for determining an alternative rate of interest to LIBOR, when and if required, and (iv) adjusts or eliminates some of the covenants applicable to the Borrower, as defined therein. The Amendment does not extend the maturity date of the 2014 7-Year Term Loan or change the amounts that can be borrowed thereunder. Identical covenants and common provisions contained in the Credit Agreements Each of the Credit Agreements contains certain affirmative and negative covenants and other provisions, which are identical to those contained in the other Credit Agreements, and which are described in detail below. 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 provides notice to the Administrative Agent (the “Rating Date”), after which alternative rates would apply, as described below. 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. Capitalized terms used and not otherwise defined in this Annual Report on Form 10-K have the meanings ascribed to such terms in the applicable credit agreement document. The 2018 Revolving Facility is subject to a facility fee, which is currently 0.30%, depending upon leverage, and is recorded as interest expense in the consolidated statements of operations. In the event we seek and obtain an investment grade credit rating, alternative facility fees would apply. Applicable Margin Level Ratio of Total Liabilities to Gross Asset Value Revolving Loans that are LIBOR Loans Revolving Loans that are Base Rate Loans Term Loans that are LIBOR Loans Term Loans that are Base Rate Loans 1 Less than 0.450 to 1.00 1.20% 0.20% 1.35% 0.35% 2 Equal to or greater than 0.450 to 1.00 but less than 0.500 to 1.00 1.25% 0.25% 1.45% 0.45% 3 Equal to or greater than 0.500 to 1.00 but less than 0.550 to 1.00 1.30% 0.30% 1.60% 0.60% 4 Equal to or greater than 0.550 to 1.00 (1) 1.55% 0.55% 1.90% 0.90% (1) The rates in effect under the Credit Agreements were based upon the Level 4 Ratio of Total Liabilities to Gross Asset Value as of December 31, 2019. We may prepay the amounts due under the Credit Agreements at any time without premium or penalty, subject to reimbursement obligations for the lenders’ breakage costs for LIBOR borrowings. The Credit Agreements contain certain affirmative and negative covenants, including, without limitation, requirements that PREIT maintain, on a consolidated basis: (1) Minimum Tangible Net Worth of $1,463.2 million, plus 75% of the Net Proceeds of all Equity Issuances effected at any time after March 31, 2018; (2) maximum ratio of Total Liabilities to Gross Asset Value of 0.60:1, provided that it will not be a Default if the ratio exceeds 0.60:1 but does not exceed 0.625:1 for more than two consecutive quarters on more than two occasions during the term; (3) minimum ratio of Adjusted EBITDA to Fixed Charges of 1.50:1; (4) minimum Unencumbered Debt Yield of (a) 11.0% through and including June 30, 2020, (b) 11.25% any time after June 30, 2020 through and including June 30, 2021, and (c) 11.50% anytime thereafter; (5) minimum Unencumbered NOI to Unsecured Interest Expense of 1.75:1; (6) maximum ratio of Secured Indebtedness to Gross Asset Value of 0.60:1; and (7) Distributions may not exceed (a) with respect to our preferred shares, the amounts required by the terms of the preferred shares, and (b) with respect to our common shares, the greater of (i) 95.0% of Funds From Operations (FFO) and (ii) 110% of REIT taxable income for a fiscal year. The covenants and restrictions in the Credit Agreements limit our ability to incur additional indebtedness, grant liens on assets and enter into negative pledge agreements, merge, consolidate or sell all or substantially all of our assets, and enter into transactions with affiliates. The Credit Agreements are subject to customary events of default and are cross-defaulted with one another. As of December 31, 2019, we were in compliance with all such financial covenants. We anticipate not meeting certain financial covenants applicable under the credit agreements during 2020. See Going Concern Considerations section in Note 1. Consolidated Mortgage Loans Our consolidated mortgage loans, which are secured by 10 of our consolidated properties, are due in installments over various terms extending to the year 2025. Seven of these mortgage loans bear interest at fixed interest rates that range from 3.88% to 5.95% and had a weighted average interest rate of 4.08% at December 31, 2019. Three of our mortgage loans bear interest at variable rates and had a weighted average interest rate of 3.94% at December 31, 2019. The weighted average interest rate of all consolidated mortgage loans was 4.04% at December 31, 2019. Mortgage loans for properties owned by unconsolidated partnerships are accounted for in “Investments in partnerships, at equity” and “Distributions in excess of partnership investments,” and are not included in the table below. The following table outlines the timing of principal payments and balloon payments pursuant to the terms of our consolidated mortgage loans of our consolidated properties as of December 31, 2019: (in thousands of dollars) For the Year Ending December 31, Principal Amortization Balloon Payments Total 2020 $ 16,266 $ 27,161 $ 43,427 2021 17,862 188,785 206,647 2022 13,463 355,988 369,451 2023 6,584 53,299 59,883 2024 6,405 - 6,405 2025 and thereafter 4,406 211,346 215,752 Total principal payments $ 64,986 $ 836,579 901,565 Less: Unamortized debt issuance costs 1,812 Carrying value of mortgage notes payable $ 899,753 The estimated fair values of our consolidated mortgage loans based on year-end interest rates and market conditions at December 31, 2019 and 2018 are as follows: 2019 2018 (in millions of dollars) Carrying Value Fair Value Carrying Value Fair Value Consolidated mortgage loans (1) $ 899.8 $ 873.9 $ 1,047.9 $ 1,002.3 (1) The carrying value of consolidated mortgage loans has been reduced by unamortized debt issuance costs of $1.8 million and $3.1 million as of December 31, 2019 and 2018, respectively. The consolidated mortgage loans contain various customary default provisions. As of December 31, 2019, we were not in default on any of the consolidated mortgage loans. Mortgage Loan Activity The following table presents the mortgage loans we have entered into or extended since January 1, 2018 relating to our consolidated properties: Financing Date Property Amount Financed or Extended (in millions of dollars ) Stated Interest Rate Maturity 2018 Activity: January Francis Scott Key (1) $ 68.5 LIBOR plus 2.60% January 2022 February Viewmont Mall (2) $ 10.2 LIBOR Plus 2.35% March 2021 (1) The $68.5 million mortgage loan’s maturity date was extended to January 2022, and has a one-year extension option that would further extend the maturity date to January 2023. (2) Other Mortgage Loan Activity In March 2019, we defeased a $58.5 million mortgage loan including accrued interest, secured by Capital City Mall in Camp Hill, Pennsylvania using funds from our 2018 Revolving Facility and the balance from available working capital. We recorded a loss on debt extinguishment of $4.8 million in March 2019 in connection with this defeasance. As discussed in Note 2, in September 2019, we conveyed Wyoming Valley Mall to the lender of the mortgage loan secured by the property. The loan had a balance of approximately $72.8 million as of the conveyance on September 26, 2019. In connection with the conveyance, $7.5 million of cash and escrow balances were transferred to the lender and we recorded a net gain on extinguishment of debt of $29.6 million. In April 2019, we received a notice from the servicer of the Cumberland Mall mortgage of a cash sweep event due to the failure of an anchor tenant to renew for a full term. We satisfied this requirement in August 2019. We have a $27.4 million mortgage, secured by Valley View Mall in La Crosse, Wisconsin, which matures in July 2020. Subsequent to December 31, 2019, we have commenced disposition discussions with the lender regarding the property. |
Equity Offerings
Equity Offerings | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity Offerings | 5. EQUITY OFFERINGS Preferred Share Offerings In January 2017, we issued 6,900,000 7.20% Series C Cumulative Redeemable Perpetual Preferred Shares (the “Series C Preferred Shares”) in a public offering at $25.00 per share. We received net proceeds from the offering of approximately $166.3 million after deducting payment of the underwriting discount of $5.4 million ($0.7875 per Series C Preferred Share) and offering expenses of $0.8 million. We used a portion of the net proceeds from this offering to repay all $117.0 million of then-outstanding borrowings under the 2013 Revolving Facility. In September and October 2017, we issued an aggregate of 5,000,000 6.875% Series D Cumulative Redeemable Perpetual Preferred Shares (the “Series D Preferred Shares”) in a public offering at $25.00 per share, including 200,000 shares that were issued pursuant to the underwriter’s exercise of an overallotment option. We received aggregate net proceeds from the offering of approximately $120.5 million after deducting payment of the underwriting discount of $4.0 million ($0.7875 per Series D Preferred Share) and offering expenses of $0.5 million. We used the net proceeds from the offering of our Series D Preferred Shares to redeem all of our then outstanding 8.25% Series A Cumulative Redeemable Perpetual Preferred Shares (the “Series A Preferred Shares”) and for general corporate purposes. We may not redeem the Series C Preferred Shares and the Series D Preferred Shares before January 27, 2022 and September 15, 2022, respectively, except to preserve our status as a REIT or upon the occurrence of a Change of Control, as defined in the Trust Agreement addendums designating the Series C Preferred Shares and Series D Preferred Shares. On and after January 27, 2022 for the Series C Preferred Shares and September 15, 2022 for the Series D Preferred Shares, we may redeem any or all of the Series C Preferred Shares or Series D Preferred Shares at $25.00 per share plus any accrued and unpaid dividends. In addition, upon the occurrence of a Change of Control, we may redeem any or all of the Series C Preferred Shares or Series D Preferred Shares for cash within 120 days after the first date on which such Change of Control occurred, at $25.00 per share plus any accrued and unpaid dividends. The Series C Preferred Shares and Series D Preferred Shares have no stated maturity, are not subject to any sinking fund or mandatory redemption provisions, and will remain outstanding indefinitely unless we redeem or otherwise repurchase them or they are converted. Preferred Share Redemption On October 12, 2017 (the “Redemption Date”), we redeemed all 4,600,000 of its Series A Preferred Shares remaining issued and outstanding as of the Redemption Date, for $115.0 million (the redemption price of $25.00 per share) plus accrued and unpaid dividends of $0.7 million (the amount equal to all accrued and unpaid dividends on the Series A Preferred Shares (whether or not declared) from September 15, 2017 up to but excluding the Redemption Date). The Series A Preferred Shares were initially issued in April 2012. As a result of this redemption, the $4.1 million excess of the redemption price over the carrying amount of the Series A Preferred Shares was deducted from Net income (loss) attributed to PREIT common shareholders in the fourth quarter of 2017. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 6. 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 For derivatives that have been designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in “Accumulated other comprehensive income” and subsequently reclassified into “Interest expense, net” in the same periods during which the hedged transaction affects earnings. As of December 31, 2019, all of our outstanding derivatives were designated as cash flow hedges. We recognize all derivatives at fair value as either assets or liabilities in the accompanying consolidated balance sheets. Our derivative assets are recorded in “Deferred costs and other assets” and our derivative liabilities are recorded in “Fair value of derivative instruments.” During 2020, we estimate that $2.7 million will be reclassified as an increase to interest expense in connection with derivatives. The recognition 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 December 31, 2019, we had interest rate swap agreements outstanding with a weighted average base interest rate of 1.86% on a notional amount of $795.6 million, maturing on various dates through May 2023, and forward starting interest rate swap agreements with a weighted average base interest rate of 2.75% on a notional amount of $100.0 million, with effective dates in June 2020, and maturity dates in May 2023. 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. The interest rate swap agreements are net settled monthly. The following table summarizes the terms and estimated fair values of our interest rate swap derivative instruments designated as cash flow hedges of interest rate risk at December 31, 2019 and 2018 based on the year they mature. 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. Maturity Date Aggregate Notional Value at December 31, 2019 (in millions of dollars) Aggregate Fair Value at December 31, 2019 (1) (in millions of dollars) Aggregate Fair Value at December 31, 2018 (1) (in millions of dollars) Weighted Average Interest Rate Interest Rate Swaps 2020 $ 100.0 $ 0.2 $ 1.9 1.23 % 2021 495.6 (1.4 ) 8.1 1.66 % 2022 — — — — 2023 200.0 (7.3 ) (0.4 ) 2.67 % Forward Starting Swaps 2023 100.0 (3.4 ) (2.6 ) 2.75 % Total $ 895.6 $ (11.9 ) $ 7.0 1.96 % (1) As of December 31, 2019 and 2018, 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). The tables below present the effect of derivative financial instruments on accumulated other comprehensive income and on our consolidated statements of operations for the years ended December 31, 2019 and 2018: Year Ended December 31, Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Instruments Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Interest Expense (in millions of dollars) 2019 2018 2017 2019 2018 2017 Derivatives in Cash Flow Hedging Relationships Interest rate products $ (15.8 ) $ (0.4 ) $ 4.0 $ (3.1 ) $ 2.4 $ 2.3 Year Ended December 31, (in millions of dollars) 2019 2018 2017 Total interest expense presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded $ (64.0 ) $ (61.4 ) $ (58.4 ) Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense $ (3.1 ) $ 2.4 $ 2.3 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 to be in default on our derivative obligations. As of December 31, 2019, 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 December 31, 2019, the fair value of derivatives in a liability position, which excludes accrued interest but includes any adjustment for nonperformance risk related to these agreements, was $13.1 million. If we had breached any of the default provisions in these agreements as of December 31, 2019, we might have been required to settle our obligations under the agreements at their termination value (including accrued interest) of $12.4 million. We had not breached any of these provisions as of December 31, 2019. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plans | 7. BENEFIT PLANS 401(k) Plan We maintain a 401(k) Plan (the “401(k) Plan”) in which substantially all of our employees are eligible to participate. The 401(k) Plan permits eligible participants, as defined in the 401(k) Plan agreement, to defer up to 30% of their compensation, and we, at our discretion, may match a specified percentage of the employees’ contributions. Our and our employees’ contributions are fully vested, as defined in the 401(k) Plan agreement. Our contributions to the 401(k) Plan were $0.9 million, $0.9 million, and $0.9 million for the years ended December 31, 2019, 2018 and 2017, respectively. Supplemental Retirement Plans We maintain Supplemental Retirement Plans (the “Supplemental Plans”) covering certain senior management employees. Expenses under the provisions of the Supplemental Plans were $0.2 million, $0.2 million, and $0.3 million for the years ended December 31, 2019, 2018 and 2017, respectively. Employee Share Purchase Plan We maintain a share purchase plan through which our employees may purchase common shares at a 15% discount to the fair market value (as defined therein). In the years ended December 31, 2019, 2018 and 2017, approximately 44,000, 31,000, and 38,000 shares, respectively, were purchased for total consideration of $0.2 million, $0.2 million, and $0.4 million, respectively. We recorded expense of approximately $48 thousand, $43 thousand and $0.1 million for the years ended December 31, 2019, 2018 and 2017, respectively, related to the share purchase plan. |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share Based Compensation | 8. SHARE BASED COMPENSATION Share Based Compensation Plans As of December 31, 2019, we make share based compensation awards using our 2018 Equity Incentive Plan, which is a share based compensation plan that was approved by our shareholders in 2018. Previously, we maintained six other plans pursuant to which we granted equity awards in various forms. Certain restricted shares and certain options granted under these previous plans remain subject to restrictions or remain outstanding and exercisable, respectively. In addition, we previously maintained two plans pursuant to which we granted options to our non-employee trustees. We recognize expense in connection with share based awards to employees and trustees by valuing all share based awards at their fair value on the date of grant, and then expensing them over the applicable vesting period. For the years ended December 31, 2019, 2018 and 2017, we recorded aggregate compensation expense for share based awards of $7.0 million (including a net reversal of $1.1 million of amortization relating to employee separation), $6.9 million (including $0.1 million of accelerated amortization relating to employee separation), and $5.7 million (including a net reversal of $0.2 million of amortization relating to employee separation), respectively, in connection with the equity incentive programs described below. There was no income tax benefit recognized in the income statement for share based compensation arrangements. For the years ended December 31, 2019, 2018 and 2017, we capitalized compensation costs related to share based awards of $0.2 million, $0.1 million, and $0.1 million, respectively. 2018 Equity Incentive Plan Subject to any future adjustments for share splits and similar events, the total remaining number of common shares that may be issued to employees or trustees under our 2018 Equity Incentive Plan (pursuant to options, restricted shares, shares issuable pursuant to current or future RSU Programs, or otherwise) was 1,145,956 as of December 31, 2019. The share based awards described in this footnote were made under the 2003 Equity Incentive Plan and the 2018 Equity Incentive Plan. Restricted Shares Subject to Time Based Vesting The aggregate fair value of the restricted shares that we granted to our employees and non-employee trustees in 2019, 2018 and 2017 was $5.6 million, $5.1 million, and $4.8 million, respectively, based on the share price on the date of the grant. As of December 31, 2019, there was $4.3 million of total unrecognized compensation cost related to unvested share based compensation arrangements granted under the 2003 Equity Incentive Plan and the 2018 Equity Incentive Plan. The cost is expected to be recognized over a weighted average period of 0.8 years. A summary of the status of our unvested restricted shares as of December 31, 2019 and changes during the years ended December 31, 2019, 2018 and 2017 is presented below: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2017 386,412 $ 21.88 Shares granted 336,296 14.95 Shares vested (238,859 ) 19.56 Shares forfeited (34,427 ) 18.00 December 31, 2017 449,422 $ 16.85 Shares granted 461,395 11.02 Shares vested (260,178 ) 16.58 Shares forfeited (29,241 ) 14.17 December 31, 2018 621,398 $ 13.29 Shares granted 798,370 7.04 Shares vested (349,533 ) 13.14 Shares forfeited (131,971 ) 8.75 December 31, 2019 938,264 $ 8.67 Restricted Shares Awarded to Employees In 2019, 2018 and 2017, we made grants of restricted shares subject to time based vesting. The awarded shares vest over periods of one to three years, typically in equal annual installments, provided the recipient remains our employee on the vesting date. For all grantees, the shares generally vest immediately upon death or disability. Recipients are entitled to receive an amount equal to the dividends on the shares prior to vesting. We granted a total of 683,570, 392,697, and 245,950 restricted shares subject to time based vesting to our employees in 2019, 2018 and 2017, respectively. The weighted average grant date fair values of time based restricted shares was $7.15 per share in 2019, $10.99 per share in 2018, and $16.43 per share in 2017. The aggregate fair value of the restricted shares granted in 2019, 2018, and 2017 were $4.9 million, $4.3 million, and $4.0 million, respectively. Compensation cost relating to time based restricted share awards is recorded ratably over the respective vesting periods. We recorded $3.7 million (including a net reversal of $0.2 million of accelerated amortization relating to employee separation), $4.3 million (including $0.1 million of accelerated amortization relating to employee separation) and $3.9 million (including $0.2 million of accelerated amortization relating to employee separation) of compensation expense related to time based restricted shares for the years ended December 31, 2019, 2018 and 2017, respectively. The total fair value of shares vested during the years ended December 31, 2019, 2018 and 2017 was $3.8 million, $2.0 million, and $3.9 million, respectively. On February 24, 2020, the Company granted 1,093,292 time-based restricted shares to employees that vest over periods of two to three years in annual installments. Outperformance Units (“OPUs”) Awarded to Employees Of the time-based restricted shares granted to employees in 2019 described above, 517,783 have Outperformance Units (“OPUs”) attached to them. The OPUs will entitle the employees to receive additional shares tied to a multiple of the employee’s time-based restricted share award if the Company achieves certain specified operating performance metrics measured over a three-year period. If any shares are issued in respect of the OPUs at the end of the three-year measurement period, 50% will vest immediately, 25% will be subject to an additional one-year two-year Restricted Shares Awarded to Non-Employee Trustees As part of the compensation we pay to our non-employee trustees for their service, we grant restricted shares subject to time based vesting. The awarded shares vest over a one-year We will record future compensation expense in connection with the vesting of existing time based restricted share awards to employees and non-employee trustees as follows: Future Compensation Expense (in thousands of dollars) For the Year Ending December 31, Employees Non-Employee Trustees Total 2020 $ 2,527 $ 284 $ 2,811 2021 1,352 — 1,352 2022 150 — 150 2023 — — Total $ 4,029 $ 284 $ 4,313 Restricted Share Unit Programs In 2019, 2018, 2017, 2016 and 2015, our Board of Trustees established the 2019-2021 RSU Program, 2018-2020 RSU Program, 2017-2019 RSU Program, 2016-2018 RSU Program, and the 2015-2017 RSU Program, respectively (collectively, the “RSU Programs”). Under the RSU Programs, we may make awards in the form of market based performance-contingent restricted share units, or RSUs. The RSUs represent the right to earn common shares in the future depending on our performance in terms of total return to shareholders (as defined in the RSU Programs) for applicable three year periods or a shorter period ending upon the date of a change in control of the Company (each, a “Measurement Period”) relative to the total return to shareholders, as defined, for the applicable Measurement Period of companies comprising an index of real estate investment trusts (the “Index REITs”). In both 2019 and 2018, only one half of the awarded RSUs were tied to our relative total return to shareholders compared to the Index REITs, with the other half of the RSUs being tied to our absolute level of total return to shareholders. Dividends are deemed credited to the participants’ RSU accounts and are applied to “acquire” more RSUs for the account of the participants at the 20 -day average price per common share ending on the dividend payment date. If earned, awards will be paid in common shares in an amount equal to the applicable percentage of the number of RSUs in the participant’s account at the end of the applicable Measurement Period. The aggregate fair values of the RSU awards in 2019, 2018 and 2017 were determined using a Monte Carlo simulation probabilistic valuation model, and are presented in the table below. The table also sets forth the assumptions used in the Monte Carlo simulations used to determine the aggregate fair values of the RSU awards in 2019, 2018 and 2017 by grant date: (in thousands of dollars, except per share data) RSUs and assumptions by Grant Date Grant Date: January 29, 2019 January 19, 2018 February 27, 2017 Measurement Basis: Absolute TSR RSUs Relative TSR RSUs Absolute TSR RSUs Relative TSR RSUs Relative TSR RSUs RSUs granted 210,193 210,193 115,614 115,614 140,490 Aggregate fair value of shares granted $ 1,550 $ 1,890 $ 1,336 $ 1,779 $ 1,620 Weighted average fair value per share $ 7.38 $ 8.99 $ 10.93 $ 14.56 $ 11.53 Volatility 40.3 % 40.3 % 31.6 % 31.6 % 25.8 % Risk free interest rate 2.58 % 2.58 % 2.19 % 2.19 % 1.42 % PREIT Stock Beta compared to Dow Jones US Real Estate Index (1) n/a n/a n/a n/a 0.706 (1) 2019 and 2018’s RSU Award valuations used a matrix approach, where the correlation was calculated between PREIT and each of its peers and each peer against all other peers. Compensation cost relating to the RSU awards is expensed ratably over the applicable three year vesting period. We recorded $1.8 million (including a reversal of $0.8 million of accelerated amortization relating to employee separation), $2.1 million, and $1.3 million (including a reversal of $0.4 million of accelerated amortization relating to employee separation) of compensation expense related to the RSU Programs for the years ended December 31, 2019, 2018 and 2017, respectively. We will record future aggregate compensation expense of $2.8 million related to the existing awards under the RSU Programs. For the years ended December 31, 2019, 2018 and 2017, no shares were issued from the 2017-2019, 2016-2018, and 2015-2017 RSU programs because the required criteria were not met. On February 24 , 2020 , the Board of Trustees established the 2020-2022 Equity Award program, and the Company granted 709,943 RSUs to employees (the “2020 RSUs”) . The 2020 RSUs have a three-year measurement perio d that ends on December 31, 2022 or a shorter period ending upon the change in control of the Company. The 2020 RSUs represent the right to receive common shares in the future depending on the Company’s performance in the achievement of operating performance measures and a modification based on total return to shareholders. The preliminary number of common shares to be issued by the Company with respect to the 2020 RSUs awarded is based on a multiple determined by achievement of certain specified operating performance measures during the applicable Measurement Period. These performance measures, the three-year core mall non-anchor occupancy and the three-year fixed charge coverage ratio, are each weighted 50 %. The preliminary number of common shares to be issued by the Company as determined under the operating performance goals will be adjusted, upwards or downwards, depending on the Company’s total return to shareholders, as defined, for the applicable Measurement Period relative to the performance of other real estate investment trusts comprising a leading index of retail real estate investment trusts. Unlike the RSUs awarded in 2018 and 2019, the number of shares that may be issued with respect to the 2020 RSUs are not dependent on any absolute level of total return to shareholders. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 9. LEASES As discussed in Note 1, we adopted ASC 842, the new lease accounting standard, effective January 1, 2019. As Lessee We have entered into ground leases for portions of the land at Springfield Town Center and Plymouth Meeting Mall. We have also entered into an office lease for our headquarters location, as well as vehicle, solar panel and equipment leases as a lessee. The initial terms of these agreements generally range from three to 40 years, with certain agreements containing extension options for up to an additional 60 years. As of December 31, 2019, we included only those renewal options we were reasonably certain of exercising. Upon lease execution, the Company measures a liability for the present value of future lease payments over the noncancellable period of the lease and any renewal option period we are reasonably certain of exercising. Certain agreements require that we pay a portion of reimbursable expenses such as CAM, utilities, insurance and real estate taxes. These payments are not included in the calculation of the lease liability and are presented as variable lease costs. We applied judgments related to the determination of the discount rates used to calculate the lease liability upon adoption at January 1, 2019. In order to calculate our incremental borrowing rate under ASC 842, we utilized judgments and estimates regarding our implied credit rating using market data and made other adjustments to determine an appropriate incremental borrowing rate as of January 1, 2019. The following table presents additional information pertaining to the Company’s leases: For the Year Ended December 31, 2019 (in thousands of dollars) Solar Panel Leases Ground Leases Office, equipment, and vehicle leases Total Finance lease cost: Amortization of right-of-use assets $ 750 $ — $ — $ 750 Interest on lease liabilities 294 — — 294 Operating lease costs — 1,583 1,932 3,515 Variable lease costs — 165 457 622 Total lease costs $ 1,044 $ 1,748 $ 2,389 $ 5,181 Other information related to leases as of and for the year ended December 31, 2019 is as follows: (in thousands of dollars) Cash paid for the amounts included in the measurement of lease liabilities Operating cash flows used for finance leases $ 294 Operating cash flows used for operating leases $ 2,205 Financing cash flows used for finance leases $ 632 Weighted average remaining lease term-finance leases (months) 99 Weighted average remaining lease term-operating leases (months) 306 Weighted average discount rate-finance leases 4.42 % Weighted average discount rate-operating leases 6.42 % Future payments against lease liabilities as of December 31, 2019 are as follows: (in thousands of dollars) Finance leases Operating leases Total 2020 $ 925 $ 2,237 $ 3,162 2021 925 2,730 3,655 2022 925 2,538 3,463 2023 925 2,485 3,410 2024 925 2,373 3,298 Thereafter 2,999 46,853 49,852 Total undiscounted lease payments 7,624 59,216 66,840 Less imputed interest (1,242 ) (28,965 ) (30,207 ) Total lease liabilities $ 6,382 $ 30,251 $ 36,633 Future minimum lease payments under these agreements as of December 31, 2018 were as follows: (in thousands of dollars) Finance leases Operating leases Total Year ending December 31, 2019 $ 925 $ 3,264 $ 4,189 2020 925 2,237 3,162 2021 925 2,730 3,655 2022 925 2,538 3,463 2023 925 2,485 3,410 Thereafter 3,923 49,226 53,149 $ 8,548 $ 62,480 $ 71,028 As Lessor As of December 31, 2019, the fixed contractual lease payments, including minimum rents and fixed CAM amounts, to be received over the next five years pursuant to the terms of noncancellable operating leases with initial terms greater than one year are included in the table below. The amounts presented assume that no leases are renewed and no renewal options are exercised. Additionally, the table does not include variable lease payments that may be received under certain leases for percentage rents or the reimbursement of operating costs, such as common area expenses, utilities, insurance and real estate taxes. These variable lease payments are recognized in the period when the applicable expenditures are incurred or, in the case of percentage rents, when the sales data is made available. (in thousands of dollars) For the Year Ending December 31, 2020 $ 205,574 2021 187,241 2022 168,671 2023 149,296 2024 127,355 2025 and thereafter 386,280 $ 1,224,417 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. RELATED PARTY TRANSACTIONS Office Leases During 2019, we leased our principal executive offices from Bellevue Associates, an entity that is owned by Ronald Rubin, one of our former trustees, collectively with members of his immediate family and affiliated entities. Total rent expense under this lease was $1.7 million, $1.3 million, and $1.3 million for the years ended December 31, 2019, 2018 and 2017, respectively. This lease terminated in December 2019. In December 2018, we entered into a lease for new office space at One Commerce Square, which is located at 2005 Market Street, Philadelphia, Pennsylvania, with Brandywine Realty Trust. Our lead independent trustee is also a Trustee of Brandywine Realty Trust. The lease commenced in December 2019 and we moved into our new offices at One Commerce Square in January 2020. Employee Health Insurance We purchase healthcare benefits for our employees through Independence Blue Cross (“IBX”). Our lead independent trustee became chairman of the board of directors of IBX during 2018. We paid total insurance healthcare premiums of $2.5 million to IBX during 2019 and $2.7 million during 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. COMMITMENTS AND CONTINGENCIES Contractual Obligations As of December 31, 2019, we had unaccrued contractual and other commitments related to our capital improvement projects and development projects of $75.2 million, including $33.1 million of commitments related to the redevelopment of Fashion District Philadelphia, in the form of tenant allowances and contracts with general service providers and other professional service providers. For the purposes of this disclosure, the contractual obligations and other commitments related to Fashion District Philadelphia are included at 100% of the obligation and not at our 50% ownership share. In addition, our operating partnership, PREIT Associates, has jointly and severally guaranteed the obligations of the joint venture we formed with Macerich to develop Fashion District 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, which was March 14, 2016. As of December 31, 2019, we expect to meet this obligation. Employment Agreements One officer of the Company currently has employment agreements with terms that renew automatically each year for additional one-year A former officer, the Executive Vice President and Chief Financial Officer, executed a Separation of Employment Agreement (the “Separation Agreement”) with the Company on December 23, 2019. Consistent with the officer’s amended and restated employment agreement dated as of December 30, 2008 (together with the May 6, 2009 Amendment thereto) as modified in certain respects by the Separation Agreement, the officer has been paid amounts that were fully earned but not yet paid on or before the last day of full-time employment, in addition to a payment equal to two times the current base salary and a payment equal to two times the average bonus amount in the last three calendar years. The officer may continue to participate in the Company’s benefit plans for eighteen months. The officer will also be paid the supplemental retirement plan account balance, as required by the terms of the employment agreements and the nonqualified supplemental executive retirement agreement. In March 2020, the Company entered into an employment agreement with Mario C. Ventresca, Jr., its Executive Vice President and Chief Financial Officer. Provision for Employee Separation Expense We recorded $3.7 million, $1.1 million and $1.3 million of employee separation expense during the years ended December 31, 2019, 2018 and 2017, respectively, in connection with the termination of certain employees. As of December 31, 2019, $3.5 million of these amounts was accrued and unpaid. Property Damage from Natural Disaster During September 2018, Jacksonville Mall in Jacksonville, North Carolina incurred property damage and an interruption of business operations as a result of Hurricane Florence. The property was closed for business during and immediately after the natural disaster, however, significant remediation efforts were quickly undertaken and the mall was reopened shortly thereafter. During the year ended December 31, 2019, we recorded net recoveries of $4.4 million. These net recoveries primarily relate to remediation expenses and business interruption claims. $0.5 million of the recoveries received relate to business interruption. During the year ended December 31, 2018, we recorded net recoveries, of approximately $0.7 million. This amount consisted of combined estimated property impairment and remediation losses of $2.3 million, offset by a corresponding insurance claim recovery of $3.0 million. Legal Actions In the normal course of business, we have and might become involved in legal actions relating to the ownership and operation of our properties and the properties we manage for third parties. In management’s opinion, the resolutions of any such pending legal actions are not expected to have a material adverse effect on our consolidated financial position or results of operations. Environmental We are aware of certain environmental matters at some of our properties. We have, in the past, performed remediation of such environmental matters, and are not aware of any significant remaining potential liability relating to these environmental matters. We might be required in the future to perform testing relating to these matters. We do not expect these matters to have any significant impact on our liquidity or results of operations. However, we can provide no assurance that the amounts reserved will be adequate to cover further environmental costs. We have insurance coverage for certain environmental claims up to $25.0 million per occurrence and up to $25.0 million in the aggregate. Tax Protection Agreements There were no tax protection agreements in effect as of December 31, 2019. |
Historic Tax Credits
Historic Tax Credits | 12 Months Ended |
Dec. 31, 2019 | |
Historic Tax Credits [Abstract] | |
Historic Tax Credits | 12. HISTORIC TAX CREDITS In the second quarter of 2012, we closed a transaction with a Counterparty (the “Counterparty”) related to the historic rehabilitation of an office building located at 801 Market Street in Philadelphia, Pennsylvania (the “Project”). In December 2018, the historic tax credit arrangement ended when the Counterparty exercised its put option and the Project paid a total of $1.0 million, comprised of $0.9 million in exchange for the Counterparty’s ownership interest and an additional $0.1 million in accrued priority returns for 2018. The tax credits received by the Counterparty were subject to five year credit recapture periods that ended in 2018. Our obligation to the Counterparty with respect to the tax credits was ratably relieved annually each year. In each of the third quarters of 2018 and 2017, we recognized $1.0 million and $1.9 million, respectively, as “Other income” in the consolidated statements of operations. We also recorded $0.2 million of priority returns earned by the Counterparty during each of the third quarters of 2018 and 2017, respectively. In aggregate, we recorded $0.8 million and $1.8 million in net income to “Other income” in the consolidated statements of operations in connection with the Project during the years ended December 31, 2018 and 2017, respectively. |
Summary of Quarterly Results (U
Summary of Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results (Unaudited) | 13. SUMMARY OF QUARTERLY RESULTS (UNAUDITED) The following presents a summary of the unaudited quarterly financial information for the years ended December 31, 2019 and 2018: (in thousands of dollars, except per share amounts) For the Year Ended December 31, 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) Total Total revenue $ 85,305 $ 81,392 $ 81,374 $ 88,721 $ 336,792 Net income (loss) (2)(3) (16,223 ) (6,080 ) 24,716 (15,413 ) (13,000 ) Net income (loss) attributable to PREIT (2)(3)(4) (14,535 ) (5,751 ) 24,262 (14,848 ) (10,872 ) Basic and diluted earnings (loss) per share (4) $ (0.30 ) $ (0.17 ) $ 0.22 $ (0.29 ) (0.52 ) (in thousands of dollars, except per share amounts) For the Year Ended December 31, 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) Total Total revenue $ 86,282 $ 91,973 $ 88,103 $ 96,042 $ 362,400 Net loss (2)(3) (3,712 ) (32,321 ) (1,636 ) (88,834 ) (126,503 ) Net loss attributable to PREIT (2)(3)(4) (2,601 ) (28,201 ) (745 ) (78,782 ) (110,329 ) Basic and diluted loss per share (4) (0.14 ) (0.50 ) (0.11 ) (1.23 ) (1.98 ) (1) Fourth Quarter revenue includes a significant portion of annual percentage rent as most percentage rent minimum sales levels are met in the fourth quarter. (2) st th nd th (3) Includes gain on sales of real estate by equity method investee of $0.6 million (1 st st nd rd th nd th th th (4) Certain prior period amounts for net income (loss) attributable to PREIT common shareholders, basic and diluted earnings per share, noncontrolling interest, total equity - PREIT and cash flow amounts were adjusted to reflect immaterial financial statement error corrections and new accounting rules as discussed in Note 1 to our consolidated financial statements. |
SCHEDULE III INVESTMENTS IN REA
SCHEDULE III INVESTMENTS IN REAL ESTATE | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate And Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III INVESTMENTS IN REAL ESTATE | (in thousands of dollars) Initial Cost of Land Initial Cost of Building & Improvements Cost of Improvements Net of Retirements and Impairment Charges Balance of Land and Land Held for Develop- ment Balance of Building & Improvements and Construction in Progress Accumulated Depreciation Balance Current Encumbrance (1) Date of Acquisition/ Construction Life of Depre- ciation Capital City Mall $ 11,380 $ 65,575 $ 59,801 $ 11,321 $ 125,435 $ 51,408 $ — 2003 40 Cherry Hill Mall 29,938 185,611 265,297 48,608 432,238 261,070 268,753 2003 40 Cumberland Mall 8,711 43,889 31,394 9,842 74,152 31,239 42,247 2005 40 Dartmouth Mall 7,015 28,328 52,872 7,021 81,194 44,318 58,288 1998 40 Exton Square Mall 19,976 103,955 (74,961 ) 23,714 25,256 11,470 — 2003 40 Francis Scott Key Mall 9,786 47,526 40,644 9,440 88,516 43,141 68,469 2003 40 Jacksonville Mall 9,913 47,139 36,515 9,913 83,654 40,110 — 2003 40 Magnolia Mall 8,149 42,302 56,657 14,511 92,597 49,356 — 1998 40 Monroe Land 1,177 — — 1,177 — — — 2006 10 Moorestown Mall 10,934 62,995 112,615 23,060 163,484 72,684 — 2003 40 Patrick Henry Mall 16,075 86,643 53,740 16,397 140,061 73,125 88,910 2003 40 Plymouth Meeting Mall 29,265 58,388 153,745 31,738 209,660 99,496 — 2003 40 The Mall at Prince Georges 13,065 57,686 74,504 13,066 132,189 63,944 — 1998 40 Springfield Town Center 119,912 353,551 22,736 119,912 376,287 67,344 — 2015 40 Sunrise Plaza land 395 — (29 ) 366 — — — 2005 N/A Swedes Square land 189 — 36 225 — — — 2004 N/A Valley Mall 11,956 57,931 75,356 23,761 121,482 48,093 — 2003 40 Valley View Mall 9,402 45,351 (18,564 ) 4,204 31,986 12,600 27,429 2003 40 Viewmont Mall 12,505 61,519 47,962 12,606 109,380 49,593 67,185 2003 40 Willow Grove Park 26,748 131,189 102,878 36,412 224,403 105,214 156,444 2003 40 Woodland Mall 31,835 121,965 127,859 40,593 241,065 78,517 123,840 2005 40 Investment In Real Estate $ 388,326 $ 1,601,543 $ 1,221,057 $ 457,887 $ 2,753,039 $ 1,202,722 $ 901,565 (1) Represents mortgage principal balances outstanding as of December 31, 2019 and does not include unamortized debt costs with an aggregate balance of $1.8 million. The aggregate cost basis and depreciated basis for federal income tax purposes of our investment in real estate was $3,132.2 million and $2,225.4 million at December 31, 2019, respectively, and $3,302.7 million and $2,353.4 million at December 31, 2018, respectively. The changes in total real estate and accumulated depreciation for the years ended December 31, 2019, 2018 and 2017 are as follows: (in thousands of dollars) For the Year Ended December 31, Total Real Estate Assets: 2019 2018 2017 Balance, beginning of year $ 3,184,594 $ 3,299,702 $ 3,300,014 Improvements and development 137,593 125,616 502,077 Acquisitions — 21,250 2,613 Impairment of assets (3,989 ) (201,818 ) (89,101 ) Dispositions (81,118 ) (4,856 ) (402,783 ) Write-off of fully depreciated assets (12,031 ) (32,993 ) (13,118 ) Reclassification to held for sale (14,123 ) (22,307 ) — Balance, end of year $ 3,210,926 $ 3,184,594 $ 3,299,702 Balance, end of year – held for sale $ 15,653 $ 22,307 $ — S-1 (in thousands of dollars) For the Year Ended December 31, Accumulated Depreciation: 2019 2018 2017 Balance, beginning of year $ 1,118,582 $ 1,111,007 $ 1,060,845 Depreciation expense 125,495 120,718 118,485 Impairment of assets (484 ) (75,586 ) (39,264 ) Dispositions (25,693 ) (4,564 ) (15,941 ) Write-off of fully depreciated assets (12,031 ) (32,993 ) (13,118 ) Reclassification to held for sale (3,147 ) — — Balance, end of year $ 1,202,722 $ 1,118,582 $ 1,111,007 Balance, end of year – held for sale $ 3,147 $ — $ — |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Pennsylvania Real Estate Investment Trust (“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. As of December 31, 2019, our portfolio consists of a total of 26 properties operating in nine states, including 21 shopping malls, four other retail properties and one development property. The property in our portfolio that is classified as under development does not currently have any activity occurring. 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 December 31, 2019, held a 97.5% 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 Operating Partnership’s partnership agreement, each of its 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 date 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 December 31, 2019, the total amount that would have been distributed would have been $10.8 million, which is calculated using our December 31, 2019 closing share price on the New York Stock Exchange of $5.33 multiplied by the number of outstanding OP Units held by limited partners, which was 2,022,635 as of December 31, 2019. 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 additional 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 our consolidated revenue, and none of our properties are located outside the United States. Consolidation We consolidate our accounts and the accounts of the Operating Partnership and other controlled subsidiaries, and we reflect the remaining interest in such entities as noncontrolling interest. All significant intercompany accounts and transactions have been eliminated in consolidation. The operating partnership 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. |
Going Concern Considerations | Going Concern Considerations Under the accounting guidance related to the presentation of financial statements, when preparing financial statements for each annual and interim reporting period, management has the responsibility to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. As a result of the considerations articulated below, we believe there is substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. In applying the accounting guidance, management considered our current financial condition and liquidity sources, including current funds available, forecasted future cash flows and our conditional and unconditional obligations due over the next twelve months. Management specifically considered the following: i) our senior unsecured facility, which includes a revolving facility maturing in 2022 with a balance of $255.0 million as of December 31, 2019 and term loans maturing in 2021 with a balance of $550.0 million as of December 31, 2019; ii) our mortgage loans with varying maturities through 2025 with a principal balance of $901.6 million as of December 31, 2019; iii) the financial covenant compliance requirements of our credit agreements; and (iv) recurring costs of operating our business. The Company anticipates not meeting certain financial covenants applicable under the credit agreements during 2020. The Company plans to continue to work with the lender group to obtain temporary debt covenant relief through September 2020 and then pursue a longer term financing solution prior to the expiration of the initial modification. In addition, the Company plans to execute the sale-leaseback of certain properties, sell certain real estate assets and control certain operational costs . Due to the inherent risks, unknown results and significant uncertainties associated with each of these matters and the direct correlation between these matters and our ability to satisfy our financial obligations that may arise over the applicable twelve month period, we are unable to conclude that it is probable that we will be able to meet our obligations arising within twelve months of the date of issuance of these financial statements under the parameters set forth in this accounting guidance . As a result, management evaluated whether this was mitigated by our approved plans and expectations for the applicable period under the second step of this accounting standard. Our ability to satisfy obligations under our senior unsecured credit facility and mortgage loans, maintain compliance with our debt covenants and fund recurring costs of operations depends primarily on management’s ability to obtain relief from the lender group in regards to debt covenants, execute the sale-leaseback of certain properties, complete the sale of certain real estate assets which will provide cash from those sales, and continue to control operational costs. While controlling operational costs are within management’s control to some extent, executing the sale-leaseback transactions, selling real estate assets, and obtaining relief from the lender group through modified debt covenant requirements involve performance by third parties and therefore cannot be considered probable of occurring. |
Partnership Investments | Partnership Investments We account for our investments in partnerships that we do not control using the equity method of accounting. These investments, each of which represents a 25% to 50% noncontrolling ownership interest at December 31, 2019, are recorded initially at our cost, and subsequently adjusted for our share of net equity in income and cash contributions and distributions. We do not control any of these equity method investees for the following reasons: • Except for two properties that we co-manage with our partner, the other entities are managed on a day-to-day basis by one of our other partners as the managing general partner in each of the respective partnerships. In the case of the co-managed properties, all decisions in the ordinary course of business are made jointly. • The managing general partner is responsible for establishing the operating and capital decisions of the partnership, including budgets, in the ordinary course of business. • All major decisions of each partnership, such as the sale, refinancing, expansion or rehabilitation of the property, require the approval of all partners. • Voting rights and the sharing of profits and losses are in proportion to the ownership percentages of each partner. We do not have a direct legal claim to the assets, liabilities, revenues or expenses of the unconsolidated partnerships beyond our rights as an equity owner, in the event of any liquidation of such entity, and our rights as a tenant in common owner of certain unconsolidated properties. We record the earnings from the unconsolidated partnerships using the equity method of accounting in the consolidated statements of operations in the caption entitled “Equity in income of partnerships,” rather than consolidating the results of the unconsolidated partnerships with our results. Changes in our investments in these entities are recorded in the consolidated balance sheet caption entitled “Investment in partnerships, at equity.” In the case of deficit investment balances, such amounts are recorded in “Distributions in excess of partnership investments.” We hold legal title to a property owned by one of our unconsolidated partnerships through a tenancy in common arrangement. For this property, such legal title is held by us and another entity, and each has an undivided interest in title to the property. With respect to this property, under the applicable agreement between us and the other entity with an ownership interest, we and such other entity have joint control because decisions regarding matters such as the sale, refinancing, expansion or rehabilitation of the property require the approval of both us and the other entity owning an interest in the property. Hence, we account for this property like our other unconsolidated partnerships using the equity method of accounting. The balance sheet items arising from the properties appear under the caption “Investments in partnerships, at equity.” For further information regarding our unconsolidated partnerships, see note 3. |
Statements of Cash Flows | Statements of Cash Flows We consider all highly liquid short-term investments with a maturity of three months or less at purchase or acquisition to be cash equivalents. At December 31, 2019 and 2018, cash and cash equivalents and restricted cash totaled $19.6 million and $32.4 million, respectively, and included tenant security deposits of $1.8 million and $2.3 million, respectively. Cash paid for interest was $59.4 million, $58.4 million and $55.4 million for the years ended December 31, 2019, 2018 and 2017, respectively, net of amounts capitalized of $7.7 million, $6.4 million and $7.6 million, respectively. The following table provides a summary of cash, cash equivalents, and restricted cash reported within the statement of cash flows as of December 31, 2019, 2018 and 2017. December 31, (in thousands of dollars) 2019 2018 2017 Cash and cash equivalents $ 12,211 $ 18,084 $ 15,348 Restricted cash included in other assets 7,417 14,361 18,605 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 19,628 $ 32,445 $ 33,953 Our restricted cash consists of cash held in escrow by banks for real estate taxes and other purposes. |
Significant Non-Cash Transactions | Significant Non-Cash Transactions In the third quarter of 2019, we conveyed Wyoming Valley Mall to the lender of the mortgage loan secured by the property. The loan had a balance of approximately $72.8 million as of the conveyance on September 26, 2019. The conveyance was a non-cash transaction with the exception of $7.5 million of cash and escrow balances which were transferred to the lender. During the second quarter of 2018, we received the building and improvements formerly occupied by one of our tenants as part of the consideration for the termination of that tenant’s lease. We recorded non-cash lease termination income of $4.2 million in connection with this transaction, which we determined was the fair value of the building and improvements. Paydowns of the 2014 5-Year Term Loan and the 2015 5-Year Term Loan of $150.0 million each were made in the year ended December 31, 2018, which were directly paid from the 2018 Term Loan Facility borrowing and are considered to be non-cash transactions. During 2017, a $150.0 million paydown of the 2013 Revolving Facility was made, which was directly paid from an additional borrowing from our 2014 7-Year Term Loan, and is considered to be a non-cash transaction. In our statement of cash flows, we report cash flows on our revolving facilities on a net basis. Aggregate borrowings on our revolving facilities were $229.0 million, $65.0 million and $309.0 million, and aggregate repayments were $39.0 million, $53.0 million and $403.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. Accrued construction costs decreased by $8.5 million in the year ended December 31, 2019, increased by $15.7 million in the year ended December 31, 2018 and decreased by $8.3 million in the year ended December 31, 2017, representing non-cash changes in construction in progress. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates. We believe that our most significant and subjective accounting estimates and assumptions are those relating to asset impairment and fair value. Our management makes complex or subjective assumptions and judgments in applying its critical accounting policies. In making these judgments and assumptions, our management considers, among other factors, events and changes in property, market and economic conditions, estimated future cash flows from property operations, and the risk of loss on specific accounts or amounts. |
Revenue Recognition | Revenue Recognition We derive over 95% of our revenue from tenant rent and other tenant-related activities. Tenant rent includes base rent, percentage rent, expense reimbursements (such as reimbursements of costs of common area maintenance (“CAM”), real estate taxes and utilities), and the amortization of above-market and below-market lease intangibles (as described below under “Intangible Assets”). On January 1, 2018, we adopted ASC 606, Revenue from Contracts with Customers We record base rent on a straight-line basis, which means that the monthly base rent revenue according to the terms of our leases with our tenants is adjusted so that an average monthly rent is recorded for each tenant over the term of its lease. When tenants vacate prior to the end of their lease, we accelerate amortization of any related unamortized straight-line rent balances, and unamortized above-market and below-market intangible balances are amortized as a decrease or increase to real estate revenue, respectively. The straight-line rent adjustment increased revenue by $1.6 million, $2.0 million, and $2.7 million in the years ended December 31, 2019, 2018 and 2017, respectively. The straight-line rent receivable balances included in tenant and other receivables on the accompanying consolidated balance sheet as of December 31, 2019 and 2018 were $30.4 million and $27.2 million, respectively. Percentage rent represents rental revenue that the tenant pays based on a percentage of its sales, either as a percentage of its total sales or as a percentage of sales over a certain threshold. In the latter case, we do not record percentage rent until the sales threshold has been reached. Revenue for rent received from tenants prior to their due dates is deferred until the period to which the rent applies. In addition to base rent, certain lease agreements contain provisions that require tenants to reimburse a fixed or pro rata share of certain CAM costs, real estate taxes and utilities. Tenants generally make monthly expense reimbursement payments based on a budgeted amount determined at the beginning of the year. Effective January 1, 2019, we recognize fixed CAM revenue prospectively on a straight-line basis. Prior to that, during the year, our income increased or decreased based on actual expense levels and changes in other factors that influenced the reimbursement amounts, such as occupancy levels. As of December 31, 2018, our tenant accounts receivable included accrued income of Certain lease agreements contain co-tenancy clauses that can change the amount of rent or the type of rent that tenants are required to pay, or, in some cases, can allow the tenant to terminate their lease, in the event that certain events take place, such as a decline in property occupancy levels below certain defined levels or the vacating of an anchor store. Co-tenancy clauses do not generally have any retroactive effect when they are triggered. The effect of co-tenancy clauses is applied on a prospective basis to recognize the new rent that is in effect. Payments made to tenants as inducements to enter into a lease are treated as deferred costs that are amortized as a reduction of rental revenue over the term of the related lease. Lease termination fee revenue is recognized in the period when a termination agreement is signed, collectibility is assured, and the tenant has vacated the space. In the event that a tenant is in bankruptcy when the termination agreement is signed, termination fee income is deferred and recognized when it is received. We also generate revenue by providing management services to third parties, including property management, brokerage, leasing and development. Management fees generally are a percentage of managed property revenue or cash receipts. Leasing fees are earned upon the consummation of new leases. Development fees are earned over the time period of the development activity and are recognized on the percentage of completion method. These activities are collectively included in “Other income” in the consolidated statements of operations. Revenue from the reimbursement of marketing expenses is generated through tenant leases that require tenants to reimburse a defined amount of property marketing expenses. Our contractual performance obligations are fulfilled as marketing expenditures are made. Tenant payments are received monthly as required by the respective lease terms. We defer income recognition if the reimbursements exceed the aggregate marketing expenditures made through that date. Deferred marketing reimbursement revenue is recorded in tenants’ deposits and deferred rent on the consolidated balance sheet, and was $0.2 million and $0.2 million as of December 31, 2019 and 2018, respectively. The marketing reimbursements are recognized as revenue at the time that the marketing expenditures occur. Marketing revenue, included in other real estate revenues in the consolidated statements of operations, was $4.1 million, $3.9 million, and $4.4 million and for the years ended December 31, 2019, 2018 and 2017, respectively. Property management revenue from management and development activities is generated through contracts with third party owners of real estate properties or with certain of our joint ventures, and is recorded in other income in the consolidated statement of operations. In the case of management fees, our performance obligations are fulfilled over time as the management services are performed and the associated revenues are recognized on a monthly basis when the customer is billed. In the case of development fees, our performance obligations are fulfilled over time as we perform certain stipulated development activities as set forth in the respective development agreements and the associated revenues are recognized on a monthly basis when the customer is billed. Property management fee revenue was $0.5 million, $0.7 million, and $0.9 million for the years ended December 31, 2019, 2018 and 2017, respectively. Development fee revenue was $0.7 million, $0.8 million, and $0.9 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Fair Value | Fair Value Fair value accounting applies to reported balances that are required or permitted to be measured at fair value under relevant accounting authority. 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). |
Financial Instruments | Financial Instruments Carrying amounts reported on the consolidated balance sheet for cash and cash equivalents, tenant and other receivables, accrued expenses, other liabilities and the 2018 Revolving Facility approximate fair value due to the short-term nature of these instruments. Most of our variable rate debt is subject to interest rate derivative instruments that have effectively fixed the interest rates on the underlying debt. The estimated fair value for fixed rate debt, which is calculated for disclosure purposes, is based on the borrowing rates available to us for fixed rate mortgage loans with similar terms and maturities. |
Impairment of Assets | Impairment of Assets Real estate investments and related intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the property might not be recoverable, which is referred to as a “triggering event.” In connection with our review of our long-lived assets for impairment, we utilize qualitative and quantitative factors in order to estimate fair value. The significant qualitative factors that we use include age and condition of the property, market conditions in the property’s trade area, competition with other shopping centers within the property’s trade area and the creditworthiness and performance of the property’s tenants. The significant quantitative factors that we use include historical and forecasted financial and operating information relating to the property, such as net operating income, occupancy statistics, vacancy projections and tenants’ sales levels. Our fair value assumptions relating to real estate assets are within Level 3 of the fair value hierarchy. If there is a triggering event in relation to a property to be held and used, we will estimate the aggregate future cash flows, net of estimated capital expenditures, to be generated by the property, undiscounted and without interest charges. In addition, this estimate may consider a probability weighted cash flow estimation approach when alternative courses of action to recover the carrying amount of a long-lived asset are under consideration or when a range of possible values is estimated. The determination of undiscounted cash flows requires significant estimates by our management, including the expected course of action at the balance sheet date that would lead to such cash flows. Subsequent changes in estimated undiscounted cash flows arising from changes in the anticipated action to be taken with respect to the property could affect the determination of whether an impairment exists, and the effects of such changes could materially affect our net income. If the estimated undiscounted cash flows are less than the carrying value of the property, the carrying value is written down to its fair value. Assessment of our ability to recover certain lease related costs must be made when we have a reason to believe that a tenant might not be able to perform under the terms of the lease as originally expected. This requires us to make estimates as to the recoverability of such costs. An other-than-temporary impairment of an investment in an unconsolidated joint venture is recognized when the carrying value of the investment is not considered recoverable based on evaluation of the severity and duration of the decline in value. To the extent impairment has occurred, the excess carrying value of the asset over its estimated fair value is recorded as a reduction to income. |
Real Estate | Real Estate Land, buildings, fixtures and tenant improvements are recorded at cost and stated at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to operations as incurred. Renovations or replacements, which improve or extend the life of an asset, are capitalized and depreciated over their estimated useful lives. For financial reporting purposes, properties are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Buildings 20-40 years Land improvements 15 years Furniture/fixtures 3-10 years Tenant improvements Lease term We are required to make subjective assessments as to the useful lives of our real estate assets for purposes of determining the amount of depreciation to reflect on an annual basis with respect to those assets based on various factors, including industry standards, historical experience and the condition of the asset at the time of acquisition. These assessments affect our annual net income. If we were to determine that a different estimated useful life was appropriate for a particular asset, it would be depreciated over the newly estimated useful life, and, other things being equal, result in changes in annual depreciation expense and annual net income. We recognize gains from sales of real estate properties and interests in partnerships when an enforceable contract is in place, control of the asset transfers to a buyer and it is probable that we will collect the consideration due in exchange for transferring the asset. Real Estate Acquisitions We account for our property acquisitions by allocating the purchase price of a property to the property’s assets based on management’s estimates of their fair value. Debt assumed in connection with property acquisitions is recorded at fair value at the acquisition date, and any resulting premium or discount is amortized through interest expense over the remaining term of the debt, resulting in a non-cash decrease (in the case of a premium) or increase (in the case of a discount) in interest expense. The determination of the fair value of intangible assets requires significant estimates by management and considers many factors, including our expectations about the underlying property, the general market conditions in which the property operates and conditions in the economy. The judgment and subjectivity inherent in such assumptions can have a significant effect on the magnitude of the intangible assets or the changes to such assets that we record. |
Intangible Assets | Intangible Assets Our intangible assets on the accompanying consolidated balance sheets as of December 31, 2019 and 2018 each included $5.2 million (in each case, net of $1.1 million of amortization expense recognized prior to January 1, 2002) of goodwill recognized in connection with the acquisition of The Rubin Organization in 1997. Approximately $1.5 million of this goodwill balance is allocated to three equity method investees with negative investment balances. Changes in the carrying amount of goodwill for the three years ended December 31, 2019 were as follows: Accumulated (in thousands of dollars) Basis Amortization Total Balance, January 1, 2017 $ 6,322 $ (1,073 ) $ 5,249 Goodwill divested — — — Balance, December 31, 2017 6,322 (1,073 ) 5,249 Goodwill divested — — — Balance, December 31, 2018 6,322 (1,073 ) 5,249 Goodwill divested — — — Balance, December 31, 2019 $ 6,322 $ (1,073 ) $ 5,249 We allocate a portion of the purchase price of a property to intangible assets. Our methodology for this allocation includes estimating an “as-if vacant” fair value of the physical property, which is allocated to land, building and improvements. The difference between the purchase price and the “as-if vacant” fair value is allocated to intangible assets. There are three categories of intangible assets to be considered: (i) value of leases, (ii) above- and below-market value of in-place leases and (iii) customer relationship value, including operating covenants. The value of in-place leases is estimated based on the value associated with the costs avoided in originating leases comparable to the acquired in-place leases, as well as the value associated with lost rental revenue during the assumed lease-up period. The value of in-place leases is amortized as real estate amortization over the remaining lease term. Above-market and below-market in-place lease values for acquired properties are recorded based on the present value of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimates of fair market lease rates for comparable in-place leases, based on factors such as historical experience, recently executed transactions and specific property issues, measured over a period equal to the remaining non-cancelable term of the lease. Above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Below-market lease values are amortized as an increase to rental income over the remaining terms of the respective leases, including any below-market optional renewal periods, and are included in “Accrued expenses and other liabilities” in the consolidated balance sheets. We allocate purchase price to customer relationship intangibles based on management’s assessment of the fair value of such relationships. The following table presents our intangible assets and liabilities, net of accumulated amortization, as of December 31, 2019 and 2018: December 31, (in thousands of dollars) 2019 2018 Intangible Assets: Value of lease intangibles, net $ 8,155 $ 12,594 Above-market lease intangibles, net — 25 Subtotal 8,155 12,619 Goodwill, net 5,249 5,249 Total intangible assets $ 13,404 $ 17,868 Intangible Liabilities Below-market lease intangibles, net $ 215 $ 403 Above-market ground lease $ — $ 5,484 Total intangible liabilities $ 215 $ 5,887 Intangible liabilities are included in “Accrued expenses and other liabilities” in the consolidated balance sheets. Amortization of lease intangibles was $3.3 million, $2.4 million, and $2.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. Net amortization of above-market and below-market lease intangibles increased revenue by $0.1 million, $0.2 million and $0.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. Amortization of above-market ground lease intangibles increased expenses by $0.1 million for each of the years ended December 31, 2018 and 2017, respectively. In the normal course of business, our intangible assets will amortize in the next five years and thereafter as follows: (in thousands of dollars) Value of Lease Customer Below Market For the Year Ending December 31, Intangibles Relationship Value Leases, net 2020 $ 1,518 $ 77 $ (67 ) 2021 1,429 — (42 ) 2022 1,299 — (10 ) 2023 1,296 — (10 ) 2024 1,251 — (10 ) 2025 and thereafter 1,285 — (76 ) Total $ 8,078 $ 77 $ (215 ) |
Assets Classified as Held for Sale | Assets Classified as Held for Sale The determination to classify an asset as held for sale requires significant estimates by us about the property and the expected market for the property, which are based on factors including recent sales of comparable properties, recent expressions of interest in the property, financial metrics of the property and the physical condition of the property. We must also determine if it will be possible under those market conditions to sell the property for an acceptable price within one year. When assets are identified by our management as held for sale, we discontinue depreciating the assets and estimate the sales price, net of selling costs, of such assets. We generally consider operating properties to be held for sale when they meet criteria such as whether the sale transaction has been approved by the appropriate level of management and there are no known material contingencies relating to the sale such that the sale is probable and is expected to qualify for recognition as a completed sale within one year. If the expected net sales price of the asset that has been identified as held for sale is less than the net book value of the asset, the asset is written down to fair value less the cost to sell. Assets and liabilities related to assets classified as held for sale are presented separately in the consolidated balance sheet. If we determine that a property no longer meets the held-for-sale criteria, we reclassify the property’s assets and liabilities to their original locations on the consolidated balance sheet and record depreciation and amortization expense for the period that the property was in held-for-sale status. In June 2018, we determined that the land parcel in Gainesville, Florida met the criteria to classify it as held for sale. This determination was made because the property was under contract, and we believed that we will likely complete a sale of the property within one year. We completed the sale of the land parcel in multiple transactions in 2019. Additionally, in December 2018, we determined that the land parcel in New Garden Township, Pennsylvania met the criteria to classify it as held for sale. This determination was made because we were in advanced negotiations with a buyer and believed that the sale would likely be complete within one year. In April 2019, we completed the sale of the New Garden Township land parcel. As of December 31, 2019, we determined that 13 land parcels and outparcels met the criteria to be classified as held for sale. The determination was made because we entered into agreements to sell multiple outparcels to a buyer and two separate land parcels in separate transactions. We also believe that we would likely complete the sale transactions within one year. The outparcels were part of an agreement executed in November 2019 with one buyer to sell 14 outparcels across five properties, of which three were sold as of December 31, 2019. In January 2020, an additional outparcel under this arrangement was sold. We also have two separate agreements to sell land parcels at Woodland Mall and Moorestown Mall. |
Capitalization of Costs | Capitalization of Costs Costs incurred in relation to development and redevelopment projects for interest, property taxes and insurance are capitalized only during periods in which activities necessary to prepare the property for its intended use are in progress. Costs incurred for such items after the property is substantially complete and ready for its intended use are charged to expense as incurred. Capitalized costs, as well as tenant inducement amounts and internal and external commissions, are recorded in construction in progress. We capitalize a portion of development department employees’ compensation and benefits related to time spent involved in development and redevelopment projects. We also capitalize interest on equity method investments while the investee is engaged in activities necessary to commence its planned principal activities. We capitalize payments made to obtain options to acquire real property. Other related costs that are incurred before acquisition that are expected to have ongoing value to the project are capitalized if the acquisition of the property is probable. If the property is acquired, other expenses related to the acquisition are recorded to project costs and other expenses. When it is probable that the property will not be acquired, capitalized pre-acquisition costs are charged to expense. For leases under which we are a lessor, certain internal leasing and legal costs such as salaries, commissions and benefits related to time spent by leasing and legal department personnel involved in originating leases with third-party tenants were previously capitalized under ASC 840. However, they are now being recorded as period costs in accordance with ASC 842. We will continue to amortize previously capitalized initial direct costs over the remaining terms of the associated leases. The following table summarizes our capitalized salaries, commissions and benefits, real estate taxes and interest for the years ended December 31, 2019, 2018 and 2017: For the Year Ended December 31, (in thousands of dollars) 2019 2018 2017 Development/Redevelopment: Salaries and benefits $ 1,332 $ 1,380 $ 1,296 Real estate taxes $ 1,057 $ 1,198 $ 1,035 Interest $ 7,725 $ 6,395 $ 7,620 Leasing: Salaries, commissions and benefits $ 568 $ 7,022 $ 6,066 |
Receivables | Receivables We review the collectibility of our tenant receivables related to tenant rent including base rent, straight-line rent, expense reimbursements and other revenue or income. We specifically analyze billed and unbilled revenues, including straight-line rent receivable, historical collection issues, customer creditworthiness and current economic and industry trends. The receivables analysis places particular emphasis on past-due accounts and considers the nature and age of the receivables, the payment history and financial condition of the payor, the basis for any disputes or negotiations with the payor, and other information that could affect collectibility. If deemed uncollectible, we record an offset for credit losses directly to lease revenue. |
Income Taxes | Income Taxes We have elected to qualify as a real estate investment trust, or REIT, under Sections 856-860 of the Internal Revenue Code of 1986, as amended, and intend to remain so qualified. In some instances, we follow methods of accounting for income tax purposes that differ from generally accepted accounting principles. Earnings and profits, which determine the taxability of distributions to shareholders, will differ from net income or loss reported for financial reporting purposes due to differences in cost basis, differences in the estimated useful lives used to compute depreciation, and differences between the allocation of our net income or loss for financial reporting purposes and for tax reporting purposes. We could be subject to a federal excise tax computed on a calendar year basis if we were not in compliance with the distribution provisions of the Internal Revenue Code. We have, in the past, distributed a substantial portion of our taxable income in the subsequent fiscal year and might also follow this policy in the future. No provision for excise tax was made for the years ended December 31, 2019, 2018 and 2017, as no excise tax was due in those years. The per share distributions paid to common shareholders had the following components for the years ended December 31, 2019, 2018 and 2017: For the Year Ended December 31, 2019 2018 2017 Ordinary income $ — $ 0.25 $ — Non-dividend distribution 0.84 0.59 0.84 Per-share distributions $ 0.84 $ 0.84 $ 0.84 The per share distributions paid to Series A, Series B, Series C and Series D preferred shareholders had the following components for the years ended December 31, 2019, 2018 and 2017: For the Year Ended December 31, 2019 2018 2017 Series A Preferred Share Dividends (1) Ordinary income $ — Non-dividend distributions 1.70 $ 1.70 Series B Preferred Share Dividends Ordinary income $ — $ 1.84 $ — Non-dividend distributions 1.84 — 1.84 $ — $ 1.84 $ 1.84 Series C Preferred Share Dividends Ordinary income $ — $ 1.80 $ — Non-dividend distributions 1.80 — 1.59 $ — $ 1.80 $ 1.59 Series D Preferred Share Dividends Ordinary income $ — $ 1.72 $ — Non-dividend distributions 1.72 — 0.45 $ — $ 1.72 $ 0.45 (1) The Series A Preferred Shares were redeemed in 2017. We follow accounting requirements that prescribe a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken in a tax return. We must determine whether it is “more likely than not” that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Once it is determined that a position meets the “more likely than not” recognition threshold, the position is measured at the largest amount of benefit that is greater than 50% likely to be realized upon settlement to determine the amount of benefit to recognize in the consolidated financial statements. PRI is subject to federal, state and local income taxes. We had no federal or state income tax provision or benefit in the year ended December 31, 2019, but had a nominal provision in the year ended December 31, 2018 and a nominal benefit in the year ended December 31, 2017. We had net deferred tax assets of $14.3 million and $16.7 million for the years ended December 31, 2019 and 2018, respectively. The deferred tax assets are primarily the result of net operating losses. A valuation allowance has been established for the full amount of the net deferred tax assets, because we have determined that it is more likely than not that these assets will not be realized based on recent earnings history for our taxable REIT subsidiaries. The deferred tax assets were remeasured for the year ended December 31, 2017 to account for the tax provisions in H.R. 1 (the Tax Cuts and Jobs Act), which was signed into law on December 22, 2017. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs include fees and costs incurred to obtain financing. Such costs are amortized to interest expense over the terms of the related indebtedness. Interest expense is determined in a manner that approximates the effective interest method in the case of costs associated with mortgage loans, or on a straight line basis in the case of costs associated with our 2018 Revolving Facility (and in prior years, our 2013 Revolving Facility) and Term Loans (see note 4). |
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 derivative financial instruments. We do not use derivative financial instruments for trading or speculative purposes. Currently, we use interest rate swaps to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs. Derivative financial instruments are recorded on the consolidated balance sheet as assets or liabilities based on the fair value of the instrument. Changes in the fair value of derivative financial instruments are recognized currently in earnings, unless the derivative financial instrument meets the criteria for hedge accounting. If the derivative financial instruments meet the criteria for a cash flow hedge, the gains and losses in the fair value of the instrument are deferred in other comprehensive income. Gains and losses on a cash flow hedge are reclassified into earnings when the forecasted transaction affects earnings. A contract that is designated as a hedge of an anticipated transaction that is no longer likely to occur is immediately recognized in earnings. The anticipated transaction to be hedged must expose us to interest rate risk, and the hedging instrument must reduce the exposure and meet the requirements for hedge accounting. We must formally designate the instrument as a hedge and document and assess the effectiveness of the hedge at inception and on a quarterly basis. Interest rate hedges that are designated as cash flow hedges are designed to mitigate the risks associated with future cash outflows on debt. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and our counterparties. As of December 31, 2019, we have assessed the significance of the effect of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. |
Operating Partnership Unit Redemptions | Operating Partnership Unit Redemptions Shares issued upon redemption of OP Units are recorded at the book value of the OP Units surrendered. |
Share-Based Compensation Expense | Share-Based Compensation Expense Share based payments to employees and non-employee trustees, including grants of restricted shares and share options, are valued at fair value on the date of grant, and are expensed over the applicable vesting period. |
Earnings Per Share | Earnings Per Share The difference between basic weighted average shares outstanding and diluted weighted average shares outstanding is the dilutive effect of common share equivalents. Common share equivalents consist primarily of shares that are issued under employee share compensation programs and outstanding share options whose exercise price is less than the average market price of our common shares during these periods. |
New Accounting Developments, Lease Accounting Related | New Accounting Developments Lease accounting related Effective January 1, 2019, we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASC 842”) and related guidance using the optional transition method and elected to apply the provisions of the standard as of the adoption date rather than the earliest date presented. Prior period amounts were not restated. We implemented the standard using the following practical expedients: • We have elected the package of practical expedients that allows us to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, and (iii) initial direct costs for any existing leases. • For leases under which we are the lessor, we also have elected to not separate non-lease components such as common area maintenance (“CAM”) and real estate reimbursements from the associated lease component (minimum rent). Instead, we account for the lease and non-lease components as a single component because such non-lease components would otherwise be accounted for under the new revenue guidance (ASC 606) and both (1) the timing and pattern of transfer are the same for the non-lease components and associated lease component, and (2) the lease component, if accounted for separately, would be classified as an operating lease. Utility reimbursements are presented separately and not in the single component as the pattern of transfer is not aligned with the use of the property and therefore the criteria for use of the practical expedient are not met. The adoption of this standard had the following effects on our financial statements as of December 31, 2019 and for the year ended December 31, 2019: As of January 1, 2019, for leases under which the Company is a lessee, we recorded a right-of-use (“ROU”) asset of $24.6 million and corresponding lease liability for all leases previously accounted for as operating leases under ASC 840. The Company also derecognized an unfavorable ground lease liability of $5.5 million and reduced the corresponding ROU asset by the same amount. As of December 31, 2019, the ROU asset was $24.1 million and is included in deferred costs and other assets, net and the lease liability was $30.3 million and is included in accrued expenses and other liabilities in the accompanying consolidated balance sheet. Effective January 1, 2019, we changed our fixed CAM revenue recognition to be recognized prospectively on a straight-line basis. In the year ended December 31, 2019, $2.7 million, of such revenues were recognized and are included within lease revenue in the accompanying consolidated statements of operations; previously, such amounts were recognized as billed in accordance with the terms of the respective leases. We review the collectability of both billed and unbilled lease revenues each reporting period, taking into consideration the tenant’s payment history, credit profile and other factors, including its operating performance. For any tenant receivable balances deemed to be uncollectible, under ASC 842 we record an offset for credit losses directly to Lease revenue in the consolidated statement of operations. Previously, under ASC 840, uncollectible tenants’ receivables were reported in Other property operating expenses in the consolidated statement of operations. We recorded offsets for credit losses of $2.8 million for the year ended December 31, 2019. For leases under which the Company is a lessor, certain internal leasing and legal costs that were previously capitalized under ASC 840 are now recorded as period costs under ASC 842. For the year ended December 31, 2018, we capitalized $5.2 million of internal leasing and legal salaries and benefits, respectively. No such costs were capitalized for the year ended December 31, 2019. We will continue to amortize previously capitalized initial direct costs over the remaining terms of the associated leases. |
New Accounting Developments, Other Accounting | Other accounting In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Cash Payments. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230) In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) as a Benchmark Interest Rate for Hedge Accounting. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment Intangibles—Goodwill and Other In February 2017, the FASB issued ASU 2017-05, Other Income- Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance. ASU 2017-05 focuses on recognizing gains and losses from the transfer of nonfinancial assets with noncustomers. It provides guidance as to the definition of an “in substance nonfinancial asset,” and provides guidance for sales of real estate, including partial sales. We adopted this new guidance effective January 1, 2018. This new guidance did not have a significant impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities In October 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) as a Benchmark Interest Rate for Hedge Accounting. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses |
New Accounting Developments, Immaterial Error Correction | Immaterial error correction The Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Income for the year ended December 31, 2017 includes the impact of correcting the reporting of net loss (income) attributable to noncontrolling interest and common shareholders. Specifically, the correction adjusts for a computational error by reducing net income (and comprehensive income) or by increasing the net loss (and comprehensive loss) attributable to noncontrolling interest by $3.4 million for the year ended December 31, 2017. The 2018 and 2017 quarterly results were also adjusted by increasing the net loss (and comprehensive loss) attributable to noncontrolling interest in the amount of $0.7 million for each of the three months ended March 31, 2018 and 2017; $0.7 million and $0.8 million for the three months ended June 30, 2018 and 2017, respectively; $0.8 million for the three months ended September 30, 2017; and $1.2 million for the three months ended December 31, 2017. The adjustments also increased the amount of net income (and comprehensive income) or decreased the amount of net loss (and comprehensive loss) attributable to PREIT and PREIT common shareholders by the corresponding amounts. The adjustments also increased the amount of basic and diluted earnings per share or decreased the amount of basic and diluted loss per share by $0.05 for the year ended December 31, 2017. The 2018 and 2017 quarterly results were also adjusted by increasing the amount of basic and diluted earnings per share or decreased the amount of basic and diluted loss per share by $0.01 for each of the three months ended March 31, 2018 and 2017; June 30, 2018 and 2017; and September 30, 2017; and, by $0.02 for the three months ended December 31, 2017. The Consolidated Statement of Equity for the years ended December 31, 2018 and 2017 included the cumulative impact of $9.3 million and $7.8 million, respectively, which corrected the reporting of noncontrolling interest by decreasing noncontrolling interest and increasing Total Equity - Pennsylvania Real Investment Trust by the corresponding amount. These corrections had no impact on the previously reported amounts of net income (loss), total equity, and consolidated cash flows from operating, investing or financing activities. We evaluated these corrections and determined, based on quantitative and qualitative factors, that the changes were not material to the consolidated financial statements taken as a whole for any previously filed consolidated financial statements. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table provides a summary of cash, cash equivalents, and restricted cash reported within the statement of cash flows as of December 31, 2019, 2018 and 2017. December 31, (in thousands of dollars) 2019 2018 2017 Cash and cash equivalents $ 12,211 $ 18,084 $ 15,348 Restricted cash included in other assets 7,417 14,361 18,605 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 19,628 $ 32,445 $ 33,953 |
Summary of Estimated Useful Lives of Assets | The estimated useful lives are as follows: Buildings 20-40 years Land improvements 15 years Furniture/fixtures 3-10 years Tenant improvements Lease term |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the three years ended December 31, 2019 were as follows: Accumulated (in thousands of dollars) Basis Amortization Total Balance, January 1, 2017 $ 6,322 $ (1,073 ) $ 5,249 Goodwill divested — — — Balance, December 31, 2017 6,322 (1,073 ) 5,249 Goodwill divested — — — Balance, December 31, 2018 6,322 (1,073 ) 5,249 Goodwill divested — — — Balance, December 31, 2019 $ 6,322 $ (1,073 ) $ 5,249 |
Summary of Intangible Assets and Liabilities, Net of Accumulated Amortization | The following table presents our intangible assets and liabilities, net of accumulated amortization, as of December 31, 2019 and 2018: December 31, (in thousands of dollars) 2019 2018 Intangible Assets: Value of lease intangibles, net $ 8,155 $ 12,594 Above-market lease intangibles, net — 25 Subtotal 8,155 12,619 Goodwill, net 5,249 5,249 Total intangible assets $ 13,404 $ 17,868 Intangible Liabilities Below-market lease intangibles, net $ 215 $ 403 Above-market ground lease $ — $ 5,484 Total intangible liabilities $ 215 $ 5,887 |
Summary of Intangible Assets Amortized in Next Five Years | In the normal course of business, our intangible assets will amortize in the next five years and thereafter as follows: (in thousands of dollars) Value of Lease Customer Below Market For the Year Ending December 31, Intangibles Relationship Value Leases, net 2020 $ 1,518 $ 77 $ (67 ) 2021 1,429 — (42 ) 2022 1,299 — (10 ) 2023 1,296 — (10 ) 2024 1,251 — (10 ) 2025 and thereafter 1,285 — (76 ) Total $ 8,078 $ 77 $ (215 ) |
Schedule of Capitalized Salaries, Commissions and Benefits, Real Estate Taxes and Interest | The following table summarizes our capitalized salaries, commissions and benefits, real estate taxes and interest for the years ended December 31, 2019, 2018 and 2017: For the Year Ended December 31, (in thousands of dollars) 2019 2018 2017 Development/Redevelopment: Salaries and benefits $ 1,332 $ 1,380 $ 1,296 Real estate taxes $ 1,057 $ 1,198 $ 1,035 Interest $ 7,725 $ 6,395 $ 7,620 Leasing: Salaries, commissions and benefits $ 568 $ 7,022 $ 6,066 |
Schedule of Distributions Paid to Shareholders | The per share distributions paid to common shareholders had the following components for the years ended December 31, 2019, 2018 and 2017: For the Year Ended December 31, 2019 2018 2017 Ordinary income $ — $ 0.25 $ — Non-dividend distribution 0.84 0.59 0.84 Per-share distributions $ 0.84 $ 0.84 $ 0.84 |
Series A And Series B Preferred Shares [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Schedule of Distributions Paid to Shareholders | The per share distributions paid to Series A, Series B, Series C and Series D preferred shareholders had the following components for the years ended December 31, 2019, 2018 and 2017: For the Year Ended December 31, 2019 2018 2017 Series A Preferred Share Dividends (1) Ordinary income $ — Non-dividend distributions 1.70 $ 1.70 Series B Preferred Share Dividends Ordinary income $ — $ 1.84 $ — Non-dividend distributions 1.84 — 1.84 $ — $ 1.84 $ 1.84 Series C Preferred Share Dividends Ordinary income $ — $ 1.80 $ — Non-dividend distributions 1.80 — 1.59 $ — $ 1.80 $ 1.59 Series D Preferred Share Dividends Ordinary income $ — $ 1.72 $ — Non-dividend distributions 1.72 — 0.45 $ — $ 1.72 $ 0.45 (1) The Series A Preferred Shares were redeemed in 2017. |
Real Estate Activities (Tables)
Real Estate Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Investments in Real Estate | Investments in real estate as of December 31, 2019 and 2018 were comprised of the following: December 31, (in thousands of dollars) 2019 2018 Buildings, improvements and construction in progress $ 2,753,039 $ 2,719,400 Land, including land held for development 457,887 465,194 Total investments in real estate 3,210,926 3,184,594 Accumulated depreciation (1,202,722 ) (1,118,582 ) Net investments in real estate $ 2,008,204 $ 2,066,012 |
Impairment of Assets | During the years ended December 31, 2019, 2018, and 2017, we recorded asset impairment losses of $5.0 million, $137.5 million, and $55.8 million, respectively. Such impairment losses are recorded in “Impairment of assets” for the years ended 2019, 2018 and 2017. The assets that incurred impairment losses and the amount of such losses are as follows: For the Year Ended December 31, (in thousands of dollars) 2019 2018 2017 Gainesville land 1,464 2,089 1,275 Woodland Mall 2,098 — — Exton Square Mall — 73,218 — Wyoming Valley Mall — 32,177 — Valley View Mall 1,408 14,294 15,521 Wiregrass Mall mortgage loan receivable — 8,122 — New Garden Township land — 7,567 — Logan Valley Mall — — 38,720 Sunrise Plaza land — — 226 Other 47 20 51 Total Impairment of Assets $ 5,017 $ 137,487 $ 55,793 |
Dispositions of Assets | The table below presents our dispositions in 2017. There were no dispositions of our mall properties in 2019 and 2018. Proceeds from property sales were used for general corporate purposes, repayment of mortgage loans that secured the properties (if applicable) and repayment of then-outstanding amounts on our Credit Agreements (see note 4), unless otherwise noted. Sale Date Property and Location Description of Real Estate Sold Capitalization Rate Sale Price Gain/ (Loss) (in millions of dollars) 2017 Activity: January Beaver Valley Mall, Monaca, Pennsylvania Mall 15.6% $ 24.2 $ — Crossroads Mall, Beckley, West Virginia Mall 15.5% 24.8 — August Logan Valley Mall, Altoona, Pennsylvania Mall 16.5% 33.2 — |
Summary of Capitalized Construction and Development Information | The following table summarizes certain capitalized construction and development information for our consolidated properties as of December 31, 2019 and 2018: December 31, (in thousands of dollars) 2019 2018 Construction in progress $ 106,011 $ 115,182 Land held for development 5,881 5,881 Deferred costs and other assets 7,274 6,487 Total capitalized construction and development activities $ 119,166 $ 127,550 |
Investments in Partnerships (Ta
Investments in Partnerships (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summary of Equity Investments | The following table presents summarized financial information of our equity investments in unconsolidated partnerships as of December 31, 2019 and 2018: December 31, (in thousands of dollars) 2019 2018 ASSETS: Investments in real estate, at cost: Operating properties $ 883,530 $ 575,149 Construction in progress 251,029 420,771 Total investments in real estate 1,134,559 995,920 Accumulated depreciation (229,877 ) (212,574 ) Net investments in real estate 904,682 783,346 Cash and cash equivalents 34,766 20,446 Deferred costs and other assets, net 43,476 30,549 Total assets 982,924 834,341 LIABILITIES AND PARTNERS’ INVESTMENT: Mortgage loans payable, net 499,057 507,090 FDP Term Loan, net 299,091 247,901 Other liabilities 79,166 34,463 Total liabilities 877,314 789,454 Net investment 105,610 44,887 Partners’ share 50,997 21,583 PREIT’s share 54,613 23,304 Excess investment (1) 17,464 15,763 Net investments and advances $ 72,077 $ 39,067 Investment in partnerships, at equity $ 159,993 $ 131,124 Distributions in excess of partnership investments (87,916 ) (92,057 ) Net investments and advances $ 72,077 $ 39,067 (1) Excess investment represents the unamortized difference between our investment and our share of the equity in the underlying net investment in the unconsolidated partnerships. The excess investment is amortized over the life of the properties, and the amortization is included in “Equity in income of partnerships.” |
Summary of Share of Equity in Income of Partnerships | The following table summarizes our share of equity in income of partnerships for the years ended December 31, 2019, 2018 and 2017: For the Year Ended December 31, (in thousands of dollars) 2019 2018 2017 Real estate revenue $ 99,580 $ 98,781 $ 115,118 Expenses: Property operating and other expenses (34,955 ) (30,839 ) (33,273 ) Interest expense (23,272 ) (23,373 ) (25,251 ) Depreciation and amortization (21,942 ) (19,393 ) (24,872 ) Total expenses (80,169 ) (73,605 ) (83,396 ) Net income 19,411 25,176 31,722 Less: Partners’ share (10,768 ) (13,719 ) (17,607 ) PREIT’s share 8,643 11,457 14,115 Amortization of excess investment (354 ) (82 ) 252 Equity in income of partnerships $ 8,289 $ 11,375 $ 14,367 |
Schedule of Principal Payments Based On Respective Partnership Interest | Our proportionate share, based on our respective partnership interest, of principal payments due in the next five years and thereafter is as follows: Company’s Proportionate Share (in thousands of dollars) For the Year Ending December 31, Principal Amortization Balloon Payments Total Property Total 2020 $ 4,378 $ — $ 4,378 $ 8,801 2021 4,049 41,170 45,219 91,945 2022 3,738 21,500 25,238 93,476 2023 3,620 33,502 37,122 74,244 2024 2,886 — 2,886 5,772 2025 and thereafter 7,213 106,087 113,300 226,601 Total principal payments $ 25,884 $ 202,259 $ 228,143 500,839 Less: Unamortized debt issuance costs 1,782 Carrying value of mortgage notes payable $ 499,057 |
Summary of Mortgage Loans Secured by Our Unconsolidated Properties | The following table presents the mortgage loans secured by the unconsolidated properties entered into since January 1, 2017: Financing Date Property Amount Financed or Extended (in millions of dollars) Stated Interest Rate Maturity 2018 Activity: February Pavilion at Market East (1) $ 8.3 LIBOR plus 2.85% February 2021 March Gloucester Premium Outlets (2) $ 86.0 LIBOR plus 1.50% March 2022 2017 Activity: October Lehigh Valley Mall (3)(4) $ 200.0 Fixed 4.06% November 2027 (1) We own a 40% partnership interest in Pavilion at Market East and our share of this mortgage loan is $3.1 million. (2) We own a 25% partnership interest in Gloucester Premium Outlets and our share of this mortgage loan is $21.5 million. (3) The proceeds were used to repay the existing $124.6 million mortgage loan plus accrued interest. We own a 50% partnership interest in Lehigh Valley Mall and our share of this mortgage loan is $96.4 million. (4) We received $35.3 million of proceeds as a distribution in connection with the financing. In connection with this new mortgage loan financing, the unconsolidated entity recorded $3.1 million of prepayment penalty and accelerated the amortization of $0.1 million of unamortized financing costs in the fourth quarter of 2017. |
Summarized Balance Sheet And Statement Of Operations For Subsidiary | Summarized balance sheet information as of December 31, 2019, 2018 and 2017, and summarized statement of operations information for the years ended December 31, 2019, 2018 and 2017 for these entities, which are accounted for using the equity method, are as follows: LVA As of or for the year ended December 31, (in thousands of dollars) 2019 2018 2017 Total assets $ 62,504 $ 52,255 $ 43,850 Mortgage payable 191,998 196,328 199,451 Revenue 32,906 35,662 34,945 Property operating expenses 8,448 9,014 9,038 Interest expense 8,055 8,222 10,907 Net income 13,162 15,605 11,389 PREIT’s share of equity in income of partnership 6,581 7,803 5,695 FDP As of or for the year ended December 31, (in thousands of dollars) 2019 2018 2017 Total assets $ 641,377 $ 497,419 $ 428,827 FDP Term Loan, net 299,091 250,000 — Revenue 8,028 4,053 18,708 Property operating expenses 6,995 3,630 6,909 Interest expense 178 126 126 Net income (7,352 ) (4,990 ) 2,436 PREIT’s share of equity in income of partnership (3,676 ) (2,495 ) 1,218 |
Financing Activity (Tables)
Financing Activity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate Properties [Line Items] | |
Schedule of Credit Facility Interest Expense | Interest expense and the deferred financing fee amortization related to the Credit Agreements for the years ended December 31, 2019, 2018 and 2017 were as follows: For the Year Ended December 31, (in thousands of dollars) 2019 2018 2017 Revolving Facilities: Interest expense $7,526 $1,807 $2,463 Deferred financing amortization 1,097 1,052 796 Term Loans: Interest expense 20,922 17,585 14,935 Deferred financing amortization 760 763 759 Accelerated financing fee — 363 — |
Schedule of Applicable Margin Interest Rates | Applicable Margin Level Ratio of Total Liabilities to Gross Asset Value Revolving Loans that are LIBOR Loans Revolving Loans that are Base Rate Loans Term Loans that are LIBOR Loans Term Loans that are Base Rate Loans 1 Less than 0.450 to 1.00 1.20% 0.20% 1.35% 0.35% 2 Equal to or greater than 0.450 to 1.00 but less than 0.500 to 1.00 1.25% 0.25% 1.45% 0.45% 3 Equal to or greater than 0.500 to 1.00 but less than 0.550 to 1.00 1.30% 0.30% 1.60% 0.60% 4 Equal to or greater than 0.550 to 1.00 (1) 1.55% 0.55% 1.90% 0.90% (1) The rates in effect under the Credit Agreements were based upon the Level 4 Ratio of Total Liabilities to Gross Asset Value as of December 31, 2019. |
Carrying and Fair Values of Mortgage Loans | The estimated fair values of our consolidated mortgage loans based on year-end interest rates and market conditions at December 31, 2019 and 2018 are as follows: 2019 2018 (in millions of dollars) Carrying Value Fair Value Carrying Value Fair Value Consolidated mortgage loans (1) $ 899.8 $ 873.9 $ 1,047.9 $ 1,002.3 (1) The carrying value of consolidated mortgage loans has been reduced by unamortized debt issuance costs of $1.8 million and $3.1 million as of December 31, 2019 and 2018, respectively. |
Mortgage Loan Activity | The following table presents the mortgage loans we have entered into or extended since January 1, 2018 relating to our consolidated properties: Financing Date Property Amount Financed or Extended (in millions of dollars ) Stated Interest Rate Maturity 2018 Activity: January Francis Scott Key (1) $ 68.5 LIBOR plus 2.60% January 2022 February Viewmont Mall (2) $ 10.2 LIBOR Plus 2.35% March 2021 (1) The $68.5 million mortgage loan’s maturity date was extended to January 2022, and has a one-year extension option that would further extend the maturity date to January 2023. (2) |
Consolidated Properties | |
Real Estate Properties [Line Items] | |
Timing of Principal Payments and Terms of Mortgage Loans | The following table outlines the timing of principal payments and balloon payments pursuant to the terms of our consolidated mortgage loans of our consolidated properties as of December 31, 2019: (in thousands of dollars) For the Year Ending December 31, Principal Amortization Balloon Payments Total 2020 $ 16,266 $ 27,161 $ 43,427 2021 17,862 188,785 206,647 2022 13,463 355,988 369,451 2023 6,584 53,299 59,883 2024 6,405 - 6,405 2025 and thereafter 4,406 211,346 215,752 Total principal payments $ 64,986 $ 836,579 901,565 Less: Unamortized debt issuance costs 1,812 Carrying value of mortgage notes payable $ 899,753 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The following table summarizes the terms and estimated fair values of our interest rate swap derivative instruments designated as cash flow hedges of interest rate risk at December 31, 2019 and 2018 based on the year they mature. 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. Maturity Date Aggregate Notional Value at December 31, 2019 (in millions of dollars) Aggregate Fair Value at December 31, 2019 (1) (in millions of dollars) Aggregate Fair Value at December 31, 2018 (1) (in millions of dollars) Weighted Average Interest Rate Interest Rate Swaps 2020 $ 100.0 $ 0.2 $ 1.9 1.23 % 2021 495.6 (1.4 ) 8.1 1.66 % 2022 — — — — 2023 200.0 (7.3 ) (0.4 ) 2.67 % Forward Starting Swaps 2023 100.0 (3.4 ) (2.6 ) 2.75 % Total $ 895.6 $ (11.9 ) $ 7.0 1.96 % (1) As of December 31, 2019 and 2018, 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 tables below present the effect of derivative financial instruments on accumulated other comprehensive income and on our consolidated statements of operations for the years ended December 31, 2019 and 2018: Year Ended December 31, Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Instruments Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Interest Expense (in millions of dollars) 2019 2018 2017 2019 2018 2017 Derivatives in Cash Flow Hedging Relationships Interest rate products $ (15.8 ) $ (0.4 ) $ 4.0 $ (3.1 ) $ 2.4 $ 2.3 Year Ended December 31, (in millions of dollars) 2019 2018 2017 Total interest expense presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded $ (64.0 ) $ (61.4 ) $ (58.4 ) Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense $ (3.1 ) $ 2.4 $ 2.3 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Status of Unvested Restricted Shares and Changes | A summary of the status of our unvested restricted shares as of December 31, 2019 and changes during the years ended December 31, 2019, 2018 and 2017 is presented below: Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2017 386,412 $ 21.88 Shares granted 336,296 14.95 Shares vested (238,859 ) 19.56 Shares forfeited (34,427 ) 18.00 December 31, 2017 449,422 $ 16.85 Shares granted 461,395 11.02 Shares vested (260,178 ) 16.58 Shares forfeited (29,241 ) 14.17 December 31, 2018 621,398 $ 13.29 Shares granted 798,370 7.04 Shares vested (349,533 ) 13.14 Shares forfeited (131,971 ) 8.75 December 31, 2019 938,264 $ 8.67 |
Assumptions Used in Monte Carlo Simulations Used to Determine Aggregate Fair Values | The table also sets forth the assumptions used in the Monte Carlo simulations used to determine the aggregate fair values of the RSU awards in 2019, 2018 and 2017 by grant date: (in thousands of dollars, except per share data) RSUs and assumptions by Grant Date Grant Date: January 29, 2019 January 19, 2018 February 27, 2017 Measurement Basis: Absolute TSR RSUs Relative TSR RSUs Absolute TSR RSUs Relative TSR RSUs Relative TSR RSUs RSUs granted 210,193 210,193 115,614 115,614 140,490 Aggregate fair value of shares granted $ 1,550 $ 1,890 $ 1,336 $ 1,779 $ 1,620 Weighted average fair value per share $ 7.38 $ 8.99 $ 10.93 $ 14.56 $ 11.53 Volatility 40.3 % 40.3 % 31.6 % 31.6 % 25.8 % Risk free interest rate 2.58 % 2.58 % 2.19 % 2.19 % 1.42 % PREIT Stock Beta compared to Dow Jones US Real Estate Index (1) n/a n/a n/a n/a 0.706 (1) 2019 and 2018’s RSU Award valuations used a matrix approach, where the correlation was calculated between PREIT and each of its peers and each peer against all other peers. |
Time Based Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Future Compensation Expense | We will record future compensation expense in connection with the vesting of existing time based restricted share awards to employees and non-employee trustees as follows: Future Compensation Expense (in thousands of dollars) For the Year Ending December 31, Employees Non-Employee Trustees Total 2020 $ 2,527 $ 284 $ 2,811 2021 1,352 — 1,352 2022 150 — 150 2023 — — Total $ 4,029 $ 284 $ 4,313 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | The following table presents additional information pertaining to the Company’s leases: For the Year Ended December 31, 2019 (in thousands of dollars) Solar Panel Leases Ground Leases Office, equipment, and vehicle leases Total Finance lease cost: Amortization of right-of-use assets $ 750 $ — $ — $ 750 Interest on lease liabilities 294 — — 294 Operating lease costs — 1,583 1,932 3,515 Variable lease costs — 165 457 622 Total lease costs $ 1,044 $ 1,748 $ 2,389 $ 5,181 |
Supplemental Cash Flows and Terms | Other information related to leases as of and for the year ended December 31, 2019 is as follows: (in thousands of dollars) Cash paid for the amounts included in the measurement of lease liabilities Operating cash flows used for finance leases $ 294 Operating cash flows used for operating leases $ 2,205 Financing cash flows used for finance leases $ 632 Weighted average remaining lease term-finance leases (months) 99 Weighted average remaining lease term-operating leases (months) 306 Weighted average discount rate-finance leases 4.42 % Weighted average discount rate-operating leases 6.42 % |
Future Minimum Payments Against Lease Liabilities Maturity | Future payments against lease liabilities as of December 31, 2019 are as follows: (in thousands of dollars) Finance leases Operating leases Total 2020 $ 925 $ 2,237 $ 3,162 2021 925 2,730 3,655 2022 925 2,538 3,463 2023 925 2,485 3,410 2024 925 2,373 3,298 Thereafter 2,999 46,853 49,852 Total undiscounted lease payments 7,624 59,216 66,840 Less imputed interest (1,242 ) (28,965 ) (30,207 ) Total lease liabilities $ 6,382 $ 30,251 $ 36,633 |
Future Minimum Lease Payments Under Agreements | Future minimum lease payments under these agreements as of December 31, 2018 were as follows: (in thousands of dollars) Finance leases Operating leases Total Year ending December 31, 2019 $ 925 $ 3,264 $ 4,189 2020 925 2,237 3,162 2021 925 2,730 3,655 2022 925 2,538 3,463 2023 925 2,485 3,410 Thereafter 3,923 49,226 53,149 $ 8,548 $ 62,480 $ 71,028 |
Lessor, Operating Lease, Payments to be Received, Maturity | As of December 31, 2019, the fixed contractual lease payments, including minimum rents and fixed CAM amounts, to be received over the next five years pursuant to the terms of noncancellable operating leases with initial terms greater than one year are included in the table below. The amounts presented assume that no leases are renewed and no renewal options are exercised. Additionally, the table does not include variable lease payments that may be received under certain leases for percentage rents or the reimbursement of operating costs, such as common area expenses, utilities, insurance and real estate taxes. These variable lease payments are recognized in the period when the applicable expenditures are incurred or, in the case of percentage rents, when the sales data is made available. (in thousands of dollars) For the Year Ending December 31, 2020 $ 205,574 2021 187,241 2022 168,671 2023 149,296 2024 127,355 2025 and thereafter 386,280 $ 1,224,417 |
Summary of Quarterly Results _2
Summary of Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Financial Information | The following presents a summary of the unaudited quarterly financial information for the years ended December 31, 2019 and 2018: (in thousands of dollars, except per share amounts) For the Year Ended December 31, 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) Total Total revenue $ 85,305 $ 81,392 $ 81,374 $ 88,721 $ 336,792 Net income (loss) (2)(3) (16,223 ) (6,080 ) 24,716 (15,413 ) (13,000 ) Net income (loss) attributable to PREIT (2)(3)(4) (14,535 ) (5,751 ) 24,262 (14,848 ) (10,872 ) Basic and diluted earnings (loss) per share (4) $ (0.30 ) $ (0.17 ) $ 0.22 $ (0.29 ) (0.52 ) (in thousands of dollars, except per share amounts) For the Year Ended December 31, 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) Total Total revenue $ 86,282 $ 91,973 $ 88,103 $ 96,042 $ 362,400 Net loss (2)(3) (3,712 ) (32,321 ) (1,636 ) (88,834 ) (126,503 ) Net loss attributable to PREIT (2)(3)(4) (2,601 ) (28,201 ) (745 ) (78,782 ) (110,329 ) Basic and diluted loss per share (4) (0.14 ) (0.50 ) (0.11 ) (1.23 ) (1.98 ) (1) Fourth Quarter revenue includes a significant portion of annual percentage rent as most percentage rent minimum sales levels are met in the fourth quarter. (2) st th nd th (3) Includes gain on sales of real estate by equity method investee of $0.6 million (1 st st nd rd th nd th th th (4) Certain prior period amounts for net income (loss) attributable to PREIT common shareholders, basic and diluted earnings per share, noncontrolling interest, total equity - PREIT and cash flow amounts were adjusted to reflect immaterial financial statement error corrections and new accounting rules as discussed in Note 1 to our consolidated financial statements. |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Nature of Operations (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)PropertyStatesubsidiarySegment$ / sharesshares | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 26 |
Number of states in which entity operates | State | 9 |
Common stock, conversion ratio | 1 |
Period of conversion | 1 year |
Redeemable noncontrolling interest, equity, other, fair value | $ | $ 10.8 |
Share price (in dollars per share) | $ / shares | $ 5.33 |
Limited partners' capital account, units outstanding (in shares) | shares | 2,022,635 |
Number of subsidiaries | subsidiary | 2 |
Number of reportable segments | Segment | 1 |
Percentage of consolidated revenue having no single tenant | 10.00% |
PREIT Associates, L.P. - Operating Partnership | |
Real Estate Properties [Line Items] | |
Interest in the Operating Partnership | 97.50% |
Mall | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 21 |
Other Retail Properties | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 4 |
Development Properties | |
Real Estate Properties [Line Items] | |
Number of real estate properties | 1 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Going Concern Considerations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Real Estate Properties [Line Items] | ||
Outstanding line of credit | $ 255,000 | $ 65,000 |
Mortgage loans payable, net | $ 899,753 | $ 1,047,906 |
Mortgage Loan | ||
Real Estate Properties [Line Items] | ||
Borrowing expiration year | 2025 | |
Mortgage loans payable, net | $ 901,600 | |
2018 Revolving Facility | ||
Real Estate Properties [Line Items] | ||
Credit facility maturity year | 2022 | |
Outstanding line of credit | $ 255,000 | |
Term Loans | ||
Real Estate Properties [Line Items] | ||
Credit facility maturity year | 2021 | |
Outstanding borrowings | $ 550,000 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Partnership Investments (Details) | Dec. 31, 2019 |
Minimum | |
Summary Of Significant Accounting Policies [Line Items] | |
Partnership investment, ownership interest | 25.00% |
Maximum | |
Summary Of Significant Accounting Policies [Line Items] | |
Partnership investment, ownership interest | 50.00% |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||||
Liquid short-term investments maturity | 3 months | |||
Cash and cash equivalents and restricted cash | $ 19,628 | $ 32,445 | $ 33,953 | $ 29,865 |
Tenant security deposits | 1,800 | 2,300 | ||
Cash paid for interest including interest of discontinued operations | 59,400 | 58,400 | 55,400 | |
Net of capitalized interest | $ 7,700 | $ 6,400 | $ 7,600 |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Cash and Restricted Cash (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash And Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 12,211 | $ 18,084 | $ 15,348 | |
Restricted cash included in other assets | 7,417 | 14,361 | 18,605 | |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 19,628 | $ 32,445 | $ 33,953 | $ 29,865 |
Additional cash and cash equivalent related text | Our restricted cash consists of cash held in escrow by banks for real estate taxes and other purposes. |
Organization and Summary of S_9
Organization and Summary of Significant Accounting Policies - Significant Non-Cash Transactions (Details) - USD ($) $ in Thousands | Sep. 26, 2019 | Sep. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Non-cash lease termination income | $ 4,200 | $ 4,200 | ||||
Line of credit facilities gross repayments | $ 39,000 | 53,000 | $ 403,000 | |||
Line of credit facilities gross borrowings | 229,000 | 65,000 | 309,000 | |||
Increase (decrease) in accrued construction costs | $ (8,500) | 15,700 | (8,300) | |||
2014 5-Year Term Loan and 2015 5-Year Term Loan | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Line of credit facilities gross repayments | $ 150,000 | |||||
2014 7-Year Term Loan | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Line of credit facilities gross repayments | $ 150,000 | |||||
Wyoming Valley Mall | Commercial Real Estate | Mortgage Loan | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Debt default, amount | $ 72,800 | |||||
Repayments of cash and escrow balance | $ 7,500 | $ 7,500 |
Organization and Summary of _10
Organization and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Revenue from tenant rent and other tenant-related activities | 95.00% | ||
Straight line rent adjustments | $ 1,600 | $ 2,000 | $ 2,700 |
Straight-line rent receivable | 30,400 | 27,200 | |
Account receivable included in accrued income | 41,261 | 38,914 | |
Deferred marketing reimbursement income | 200 | 200 | |
Marketing revenue | 4,100 | 3,900 | 4,400 |
Property management fee revenue | 500 | 700 | 900 |
Development fee revenue | $ 700 | 800 | $ 900 |
Accrued Income Receivable | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Account receivable included in accrued income | $ 1,900 |
Organization and Summary of _11
Organization and Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Line Items] | |
Tenant improvements | Lease term |
Buildings | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 20 years |
Buildings | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 40 years |
Land improvements | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 15 years |
Furniture/fixtures | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture/fixtures | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 10 years |
Organization and Summary of _12
Organization and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite Lived Intangible Assets [Line Items] | ||||||||||||
Goodwill | $ 5,249 | $ 5,249 | $ 5,249 | $ 5,249 | $ 5,249 | $ 5,249 | ||||||
Amortization of intangible assets | 1,100 | 1,100 | ||||||||||
Increase in revenue | 88,721 | $ 81,374 | $ 81,392 | $ 85,305 | $ 96,042 | $ 88,103 | $ 91,973 | $ 86,282 | 336,792 | 362,400 | 367,490 | |
Increase in expenses | 364,108 | 512,675 | 422,153 | |||||||||
Value of in-place lease intangibles | ||||||||||||
Finite Lived Intangible Assets [Line Items] | ||||||||||||
Amortization of intangible assets | 3,300 | 2,400 | 2,000 | |||||||||
Above/(Below) Market Leases | ||||||||||||
Finite Lived Intangible Assets [Line Items] | ||||||||||||
Increase in revenue | 100 | 200 | 100 | |||||||||
Above-market ground lease | ||||||||||||
Finite Lived Intangible Assets [Line Items] | ||||||||||||
Increase in expenses | $ 100 | $ 100 | ||||||||||
Three Equity Method Investees | ||||||||||||
Finite Lived Intangible Assets [Line Items] | ||||||||||||
Goodwill | $ 1,500 | $ 1,500 |
Organization and Summary of _13
Organization and Summary of Significant Accounting Policies - Schedule of Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Basis, Balance, beginning of period | $ 6,322 | $ 6,322 | $ 6,322 |
Basis, Changes in Goodwill | 0 | 0 | 0 |
Basis, Balance, end of period | 6,322 | 6,322 | 6,322 |
Accumulated Amortization, Balance, beginning of period | (1,073) | (1,073) | (1,073) |
Accumulated Amortization, Changes in Goodwill | 0 | 0 | 0 |
Accumulated Amortization, Balance, end of period | (1,073) | (1,073) | (1,073) |
Goodwill | 5,249 | 5,249 | 5,249 |
Changes in Goodwill | 0 | 0 | 0 |
Goodwill | $ 5,249 | $ 5,249 | $ 5,249 |
Organization and Summary of _14
Organization and Summary of Significant Accounting Policies - Summary of Intangible Assets and Liabilities, Net of Accumulated Amortization (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets [Line Items] | ||||
Subtotal | $ 8,155 | $ 12,619 | ||
Goodwill | 5,249 | 5,249 | $ 5,249 | $ 5,249 |
Total intangible assets | 13,404 | 17,868 | ||
Below-market lease intangibles, net | 215 | 403 | ||
Above-market ground lease | 5,484 | |||
Total intangible liabilities | 215 | 5,887 | ||
Value of in-place lease intangibles | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Subtotal | $ 8,155 | 12,594 | ||
Above-market lease intangibles | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Subtotal | $ 25 |
Organization and Summary of _15
Organization and Summary of Significant Accounting Policies - Summary of Intangible Assets Amortized in Next Five Years (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill And Intangible Assets [Line Items] | |
Below Market Leases, net, 2020 | $ (67) |
Below Market Leases, net, 2021 | (42) |
Below Market Leases, net, 2022 | (10) |
Below Market Leases, net, 2023 | (10) |
Below Market Leases, net, 2024 | (10) |
Below Market Leases, net, 2025 and thereafter | (76) |
Below Market Leases, net, Total | (215) |
Value of in-place lease intangibles | |
Goodwill And Intangible Assets [Line Items] | |
Intangibles, 2020 | 1,518 |
Intangibles, 2021 | 1,429 |
Intangibles, 2022 | 1,299 |
Intangibles, 2023 | 1,296 |
Intangibles, 2024 | 1,251 |
Intangibles, 2025 and thereafter | 1,285 |
Intangibles. Total | 8,078 |
Customer Relationship Value | |
Goodwill And Intangible Assets [Line Items] | |
Intangibles, 2020 | 77 |
Intangibles. Total | $ 77 |
Organization and Summary of _16
Organization and Summary of Significant Accounting Policies - Assets Classified as Held for Sale (Details) - Property | 1 Months Ended | 12 Months Ended |
Nov. 30, 2019 | Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Number of properties held for sale | 5 | |
Number of real estate properties sold | 14 | 3 |
Land Parcels and Outparcels | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of properties held for sale | 13 | |
Land Parcels | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of properties held for sale | 2 | |
Outparcels | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of properties held for sale | 14 |
Organization and Summary of _17
Organization and Summary of Significant Accounting Policies - Schedule of Capitalized Salaries, Commissions and Benefits, Real Estate Taxes and Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Salaries and benefits | $ 1,332 | $ 1,380 | $ 1,296 |
Real estate taxes | 1,057 | 1,198 | 1,035 |
Interest | 7,725 | 6,395 | 7,620 |
Salaries, commissions and benefits | $ 568 | $ 7,022 | $ 6,066 |
Organization and Summary of _18
Organization and Summary of Significant Accounting Policies - Schedule of Distributions Paid to Shareholders (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Component Of Operating Cost And Expense [Line Items] | |||
Ordinary income | $ 0.25 | ||
Non-dividend distributions | $ 0.84 | 0.59 | $ 0.84 |
Per-share distributions | 0.84 | 0.84 | 0.84 |
Series A Preferred Stock | |||
Component Of Operating Cost And Expense [Line Items] | |||
Non-dividend distributions | 1.70 | ||
Per-share distributions | 1.70 | ||
Series B Preferred Stock | |||
Component Of Operating Cost And Expense [Line Items] | |||
Ordinary income | 1.84 | ||
Non-dividend distributions | 1.84 | 1.84 | |
Per-share distributions | 1.84 | 1.84 | |
Series C Preferred Stock | |||
Component Of Operating Cost And Expense [Line Items] | |||
Ordinary income | 1.80 | ||
Non-dividend distributions | 1.80 | 1.59 | |
Per-share distributions | 1.80 | 1.59 | |
Series D Preferred Stock | |||
Component Of Operating Cost And Expense [Line Items] | |||
Ordinary income | 1.72 | ||
Non-dividend distributions | $ 1.72 | 0.45 | |
Per-share distributions | $ 1.72 | $ 0.45 |
Organization and Summary of _19
Organization and Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Income tax expense (benefit) | $ 0 | $ 0 | $ 0 |
Net deferred tax assets | $ 14,300,000 | $ 16,700,000 |
Organization and Summary of _20
Organization and Summary of Significant Accounting Policies - Lease (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 24,100 | ||
Operating lease, liability | 30,251 | ||
Operating lease, lease income | 2,700 | ||
Offset for credit losses on lease revenue | $ 2,800 | ||
Lessor, lease, cost | $ 5,200 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 24,600 | ||
Operating lease, liability | 24,600 | ||
Ground Leases | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Decrease in operating lease, right-of-use asset | 5,500 | ||
Decrease in operating lease, liability | $ 5,500 |
Organization and Summary of _21
Organization and Summary of Significant Accounting Policies - Other Accounting (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash distributions from partnerships | $ 22,570,000 | $ 9,421,000 | $ 16,849,000 |
Net cash (used in) provided by investing activities | $ (131,350,000) | $ (41,567,000) | (105,418,000) |
Accounting Standards Update 2016-15 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash distributions from partnerships | 5,700 | ||
Accounting Standards Update 2016-18 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash (used in) provided by investing activities | 1,500,000 | ||
Accounting Standards Update 2016-18 | Escrow Accounts | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash (used in) provided by investing activities | $ 500,000 |
Organization and Summary of _22
Organization and Summary of Significant Accounting Policies - Immaterial Error Correction (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||||||||
Increase decrease in net loss attributable to noncontrolling interests | $ 700,000 | $ 700,000 | $ 1,200,000 | $ 800,000 | $ 800,000 | $ 700,000 | $ 3,400,000 | |
Increase decrease in earnings per share, basic and diluted (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.02 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.05 | |
Cumulative decrease to noncontrolling interest | $ 7,800 | $ 7,800 | $ 9,300 |
Real Estate Activities - Invest
Real Estate Activities - Investments in Real Estate (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Real Estate [Abstract] | ||
Buildings, improvements and construction in progress | $ 2,753,039 | $ 2,719,400 |
Land, including land held for development | 457,887 | 465,194 |
Total investments in real estate | 3,210,926 | 3,184,594 |
Accumulated depreciation | (1,202,722) | (1,118,582) |
Net investments in real estate | $ 2,008,204 | $ 2,066,012 |
Real Estate Activities - Impair
Real Estate Activities - Impairments (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019USD ($) | Nov. 30, 2019USD ($)Property | Feb. 28, 2019USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2019USD ($)Property | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | $ 5,017 | $ 137,487 | $ 55,793 | ||||||||||
Number of real estate properties sold | Property | 14 | 3 | |||||||||||
Sale of properties | $ 29,900 | ||||||||||||
Gains (losses) on sales of investment real estate | $ 100 | $ 1,200 | $ 1,500 | $ 800 | $ 700 | $ 2,744 | 1,722 | (27) | |||||
Cash proceeds from sale of mortgage | 8,000 | ||||||||||||
Woodland Mall | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | $ 600 | 2,098 | |||||||||||
Woodland Mall | Grand Rapids, Michigan | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | $ 1,500 | ||||||||||||
Gainesville Land | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | $ 1,500 | 1,464 | 2,089 | 1,275 | |||||||||
Sale of properties | 10,000 | 5,000 | |||||||||||
Gainesville Land | Maximum | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Gain (Loss) on sale of properties | 100 | ||||||||||||
Gainesville Land | Florida | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | 2,100 | 1,300 | |||||||||||
Sale of properties | $ 15,000 | ||||||||||||
Exton Square Mall | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | $ 73,218 | ||||||||||||
Terminal capitalization rate | 10.00% | ||||||||||||
Capitalization rate | 5.50% | ||||||||||||
Exton Square Mall | Discounted Estimated Future Cash Flows | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Fair value input discount rate | 10.50% | ||||||||||||
Exton Square Mall | Pennsylvania | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | $ 73,200 | ||||||||||||
Wyoming Valley Mall | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | 32,177 | ||||||||||||
Terminal capitalization rate | 9.00% | ||||||||||||
Wyoming Valley Mall | Discounted Estimated Future Cash Flows | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Fair value input discount rate | 10.50% | ||||||||||||
Wyoming Valley Mall | Pennsylvania | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | $ 32,200 | ||||||||||||
Valley View Mall | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | $ 1,408 | $ 14,294 | $ 15,521 | ||||||||||
Capitalization rate | 13.20% | 12.00% | 12.00% | ||||||||||
Valley View Mall | Wisconsin | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | $ 1,400 | $ 14,300 | $ 15,500 | ||||||||||
Real estate properties impairment holding period | 1 year | ||||||||||||
Wiregrass Loan Receivable | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | 8,100 | 8,122 | |||||||||||
Mortgage note received | 16,100 | 16,100 | $ 17,000 | ||||||||||
Fixed interest rate | 6.00% | ||||||||||||
Interest income on mortgage note received | $ 200 | 1,000 | 1,000 | ||||||||||
Fair value of mortgage note received | $ 8,000 | 8,000 | |||||||||||
Cash proceeds from sale of mortgage | $ 8,000 | ||||||||||||
New Garden Township Land | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | 7,567 | ||||||||||||
New Garden Township Land | Pennsylvania | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | $ 7,600 | ||||||||||||
Logan Valley Mall | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | 38,720 | ||||||||||||
Logan Valley Mall | Pennsylvania | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | 38,700 | ||||||||||||
Sunrise Plaza Land | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | 226 | ||||||||||||
Sunrise Plaza Land | Pennsylvania | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Impairment of asset | $ 200 | ||||||||||||
Capital City Mall and Magnolia Mall | |||||||||||||
Real Estate Properties [Line Items] | |||||||||||||
Disposal group, consideration | $ 5,200 | $ 5,200 | 5,200 | ||||||||||
Gains (losses) on sales of investment real estate | $ 2,700 |
Real Estate Activities - Impa_2
Real Estate Activities - Impairment of Assets (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Impairment Of Assets [Line Items] | ||||||
Total Impairment of Assets | $ 5,017 | $ 137,487 | $ 55,793 | |||
Gainesville Land | ||||||
Impairment Of Assets [Line Items] | ||||||
Total Impairment of Assets | $ 1,500 | 1,464 | 2,089 | 1,275 | ||
Woodland Mall | ||||||
Impairment Of Assets [Line Items] | ||||||
Total Impairment of Assets | $ 600 | 2,098 | ||||
Exton Square Mall | ||||||
Impairment Of Assets [Line Items] | ||||||
Total Impairment of Assets | 73,218 | |||||
Wyoming Valley Mall | ||||||
Impairment Of Assets [Line Items] | ||||||
Total Impairment of Assets | 32,177 | |||||
Valley View Mall | ||||||
Impairment Of Assets [Line Items] | ||||||
Total Impairment of Assets | 1,408 | 14,294 | 15,521 | |||
Wiregrass Loan Receivable | ||||||
Impairment Of Assets [Line Items] | ||||||
Total Impairment of Assets | $ 8,100 | 8,122 | ||||
New Garden Township Land | ||||||
Impairment Of Assets [Line Items] | ||||||
Total Impairment of Assets | 7,567 | |||||
Logan Valley Mall | ||||||
Impairment Of Assets [Line Items] | ||||||
Total Impairment of Assets | 38,720 | |||||
Sunrise Plaza Land | ||||||
Impairment Of Assets [Line Items] | ||||||
Total Impairment of Assets | 226 | |||||
Other | ||||||
Impairment Of Assets [Line Items] | ||||||
Total Impairment of Assets | $ 47 | $ 20 | $ 51 |
Real Estate Activities - Acquis
Real Estate Activities - Acquisitions (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Moorestown Mall And Valley Mall. | ||
Real Estate Properties [Line Items] | ||
Purchased real estate and improvements | $ 17.6 | |
Moorestown Mall, Valley View Mall And Valley Mall | ||
Real Estate Properties [Line Items] | ||
Purchased real estate and improvements | $ 13.9 |
Real Estate Activities - Dispos
Real Estate Activities - Dispositions of Assets (Detail) - Mall - USD ($) | 1 Months Ended | |
Aug. 31, 2017 | Jan. 31, 2017 | |
Beaver Valley Mall | ||
Disposals [Line Items] | ||
Capitalization rate | 15.60% | |
Sale Price | $ 24,200 | |
Crossroads Mall | ||
Disposals [Line Items] | ||
Capitalization rate | 15.50% | |
Sale Price | $ 24,800 | |
Logan Valley Mall | ||
Disposals [Line Items] | ||
Capitalization rate | 16.50% | |
Sale Price | $ 33,200 |
Real Estate Activities - Disp_2
Real Estate Activities - Dispositions (Details) $ in Thousands | Sep. 26, 2019USD ($) | Nov. 30, 2019Property | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2020USD ($)Property | Dec. 31, 2019USD ($)Property | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Number of real estate properties sold | Property | 14 | 3 | ||||||||||
Gains (losses) on sales of investment real estate | $ 100 | $ 1,200 | $ 1,500 | $ 800 | $ 700 | $ 2,744 | $ 1,722 | $ (27) | ||||
Total Impairment of Assets | 5,017 | 137,487 | 55,793 | |||||||||
Gain on debt extinguishment, net | 24,859 | 0 | 0 | |||||||||
Wyoming Valley Mall | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Total Impairment of Assets | 32,177 | |||||||||||
Wyoming Valley Mall | Pennsylvania | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Total Impairment of Assets | 32,200 | |||||||||||
Wyoming Valley Mall | Commercial Real Estate | Mortgage Loan | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Debt default, amount | $ 72,800 | |||||||||||
Total Impairment of Assets | 32,200 | |||||||||||
Written off remaining carrying value of property | 43,200 | |||||||||||
Gain on debt extinguishment, net | $ 29,600 | 29,600 | ||||||||||
Undeveloped Land Parcel, Gainesville, Florida | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Disposal group, consideration | 10,000 | $ 15,000 | 10,000 | |||||||||
Proceeds from sale of real estate | 5,000 | |||||||||||
Gains (losses) on sales of investment real estate | $ (1,500) | |||||||||||
Undeveloped Land Parcel, New Garden township, Pennsylvania | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Disposal group, consideration | 11,000 | 11,000 | ||||||||||
Proceeds from sale of real estate | 8,250 | |||||||||||
Gains (losses) on sales of investment real estate | 200 | |||||||||||
Contingent liability | 1,250 | 1,250 | ||||||||||
Undeveloped Land Parcel, New Garden township, Pennsylvania | Preferred Stock | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Disposal group, consideration transferred, equity instruments | 2,750 | |||||||||||
Whole Foods Store Adjacent To Exton Square Mall | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Disposal group, consideration | 22,100 | 22,100 | ||||||||||
Gains (losses) on sales of investment real estate | 1,300 | |||||||||||
Valley View Mall In La Crosse Wisconsin | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Disposal group, consideration | $ 1,400 | 1,400 | ||||||||||
Gains (losses) on sales of investment real estate | $ 1,200 | |||||||||||
Exton Square Mall in Exton | Pennsylvania | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Disposal group, consideration | 10,300 | 10,300 | ||||||||||
Gains (losses) on sales of investment real estate | 8,100 | |||||||||||
Valley Mall in Hagerstown | Maryland | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Disposal group, consideration | 2,400 | 2,400 | ||||||||||
Gains (losses) on sales of investment real estate | 1,000 | |||||||||||
Magnolia Mall in Florence | South Carolina | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Disposal group, consideration | $ 1,700 | $ 1,700 | ||||||||||
Gains (losses) on sales of investment real estate | $ 700 | |||||||||||
Beaver Valley Mall, Exton Square Mall and Valley Mall | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Disposal group, consideration | 6,400 | |||||||||||
Gains (losses) on sales of investment real estate | $ 1,300 | |||||||||||
Scenario Forecast | Properties Under Sale-leaseback Transaction | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Number of real estate properties sold | Property | 5 | |||||||||||
Disposal group, consideration | $ 153,600 | |||||||||||
Scenario Forecast | Land Parcels | Multifamily Development | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Disposal group, consideration | $ 125,300 |
Real Estate Activities - Capita
Real Estate Activities - Capitalized Construction And Development Information For Our Consolidated Properties (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Real Estate Capitalized Costs [Line Items] | ||
Construction in progress | $ 106,011 | $ 115,182 |
Land held for development | 5,881 | 5,881 |
Deferred costs and other assets, net | 103,688 | 110,805 |
Capitalized Construction and Development Activities | ||
Real Estate Capitalized Costs [Line Items] | ||
Construction in progress | 106,011 | 115,182 |
Land held for development | 5,881 | 5,881 |
Deferred costs and other assets, net | 7,274 | 6,487 |
Total capitalized construction and development activities | $ 119,166 | $ 127,550 |
Investments in Partnerships - S
Investments in Partnerships - Summary of Equity Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments in real estate, at cost: | ||
Operating properties | $ 883,530 | $ 575,149 |
Construction in progress | 251,029 | 420,771 |
Total investments in real estate | 1,134,559 | 995,920 |
Accumulated depreciation | (229,877) | (212,574) |
Net investments in real estate | 904,682 | 783,346 |
Cash and cash equivalents | 34,766 | 20,446 |
Deferred costs and other assets, net | 43,476 | 30,549 |
Total assets | 982,924 | 834,341 |
LIABILITIES AND PARTNERS’ INVESTMENT: | ||
Mortgage loans payable, net | 499,057 | 507,090 |
FDP Term Loan, net | 299,091 | 247,901 |
Other liabilities | 79,166 | 34,463 |
Total liabilities | 877,314 | 789,454 |
Net investment | 105,610 | 44,887 |
Partners’ share | 50,997 | 21,583 |
PREIT’s share | 54,613 | 23,304 |
Excess investment | 17,464 | 15,763 |
Net investments and advances | 72,077 | 39,067 |
Investment in partnerships, at equity | 159,993 | 131,124 |
Distributions in excess of partnership investments | $ (87,916) | $ (92,057) |
Investments in Partnerships -_2
Investments in Partnerships - Summary of Share of Equity in Income of Partnerships (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Real estate revenue | $ 99,580 | $ 98,781 | $ 115,118 |
Expenses: | |||
Property operating and other expenses | (34,955) | (30,839) | (33,273) |
Interest expense | (23,272) | (23,373) | (25,251) |
Depreciation and amortization | (21,942) | (19,393) | (24,872) |
Total expenses | (80,169) | (73,605) | (83,396) |
Net income | 19,411 | 25,176 | 31,722 |
Less: Partners’ share | (10,768) | (13,719) | (17,607) |
PREIT’s share | 8,643 | 11,457 | 14,115 |
Amortization of excess investment | (354) | (82) | 252 |
Equity in income of partnerships | 8,289 | 11,375 | 14,367 |
Total assets | 982,924 | 834,341 | |
FDP Term Loan, net | 299,091 | 247,901 | |
Lehigh Valley Associates, LP | |||
Expenses: | |||
Total assets | 62,504 | 52,255 | 43,850 |
Mortgage payable | 191,998 | 196,328 | 199,451 |
Revenue | 32,906 | 35,662 | 34,945 |
Property operating expenses | 8,448 | 9,014 | 9,038 |
Interest expense | 8,055 | 8,222 | 10,907 |
Net income | 13,162 | 15,605 | 11,389 |
PREIT’s share of equity in income of partnership | 6,581 | 7,803 | 5,695 |
Fashion District Philadelphia | |||
Expenses: | |||
Total assets | 641,377 | 497,419 | 428,827 |
Revenue | 8,028 | 4,053 | 18,708 |
Property operating expenses | 6,995 | 3,630 | 6,909 |
Interest expense | 178 | 126 | 126 |
Net income | (7,352) | (4,990) | 2,436 |
PREIT’s share of equity in income of partnership | (3,676) | (2,495) | $ 1,218 |
FDP Term Loan, net | $ 299,091 | $ 250,000 | |
Lehigh Valley Associates, LP | Lehigh Valley Associates, LP | |||
Expenses: | |||
Ownership percentage | 50.00% | ||
Fashion District Philadelphia | Fashion District Philadelphia | |||
Expenses: | |||
Ownership percentage | 50.00% |
Investments in Partnerships - D
Investments in Partnerships - Dispositions (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2019 | Feb. 28, 2019 | Sep. 30, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Gains (losses) on sales of investment real estate | $ 100 | $ 1,200 | $ 1,500 | $ 800 | $ 700 | $ 2,744 | $ 1,722 | $ (27) | |||
Partnership Interest | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Ownership percentage | 25.00% | ||||||||||
Undeveloped Land Parcel Adjacent To Gloucester Premium Outlets | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Gains (losses) on sales of investment real estate | $ 600 | ||||||||||
Undeveloped Land Parcel Adjacent To Gloucester Premium Outlets | Partnership Interest | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from real estate and real estate joint ventures | 3,800 | ||||||||||
Gains (losses) on sales of investment real estate | $ 2,300 | ||||||||||
Condominium Interest in 907 Market Street, Philadelphia, Pennsylvania | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Gains (losses) on sales of investment real estate | $ 2,800 | ||||||||||
Condominium Interest in 907 Market Street, Philadelphia, Pennsylvania | Partnership Interest | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Ownership percentage | 50.00% | ||||||||||
Proceeds from real estate and real estate joint ventures | $ 41,800 | ||||||||||
Gains (losses) on sales of investment real estate | 5,500 | ||||||||||
Proceeds from sale of real estate | $ 19,700 | ||||||||||
Condominium Interest in 801 Market Street, Philadelphia, Pennsylvania | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Gains (losses) on sales of investment real estate | $ 6,500 | ||||||||||
Condominium Interest in 801 Market Street, Philadelphia, Pennsylvania | Partnership Interest | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Ownership percentage | 50.00% | ||||||||||
Proceeds from real estate and real estate joint ventures | $ 61,500 | ||||||||||
Gains (losses) on sales of investment real estate | 13,100 | ||||||||||
Proceeds from sale of real estate | $ 30,300 |
Investments in Partnerships - T
Investments in Partnerships - Term Loan (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jan. 31, 2018 | Sep. 30, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Distribution of financing proceeds from equity method investee | $ 25,000 | $ 123,000 | $ 35,221 | |||||
Fashion District Philadelphia | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Long-term debt | $ 250,000 | $ 350,000 | ||||||
Ownership percentage | 50.00% | 50.00% | ||||||
Debt instrument, maturity month and year | 2023-01 | |||||||
Debt instrument, interest rate terms | LIBOR plus 2.00% | |||||||
Proceeds from (Repayments of) Long-term debt and capital securities | $ 51,000 | $ 250,000 | ||||||
Distribution of financing proceeds from equity method investee | $ 25,000 | $ 123,000 | ||||||
Fashion District Philadelphia | LIBOR | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Debt, variable interest rate | 2.00% |
Investments in Partnerships - M
Investments in Partnerships - Mortgage Loans of Unconsolidated Properties (Details) | 12 Months Ended |
Dec. 31, 2019Property | |
Mortgage Loan | |
Mortgage Loans On Real Estate [Line Items] | |
Debt Instrument, weighted average interest rate | 4.04% |
Mortgage Loan | Fixed Interest Rate | |
Mortgage Loans On Real Estate [Line Items] | |
Debt Instrument, weighted average interest rate | 4.08% |
Mortgage Loan | Fixed Interest Rate | Minimum | |
Mortgage Loans On Real Estate [Line Items] | |
Debt instrument, interest rate during period | 3.88% |
Mortgage Loan | Fixed Interest Rate | Maximum | |
Mortgage Loans On Real Estate [Line Items] | |
Debt instrument, interest rate during period | 5.95% |
Mortgage Loan | Variable Interest Rate | |
Mortgage Loans On Real Estate [Line Items] | |
Debt Instrument, weighted average interest rate | 3.94% |
Unconsolidated Properties | |
Mortgage Loans On Real Estate [Line Items] | |
Number of properties securing mortgage debt | 7 |
Number of fixed rate mortgage loans payable | 5 |
Number of variable rate mortgage loans payable | 2 |
Unconsolidated Properties | Mortgage Loan | |
Mortgage Loans On Real Estate [Line Items] | |
Property under development | 1 |
Mortgage loan due date | 2027 |
Debt Instrument, weighted average interest rate | 4.43% |
Unconsolidated Properties | Mortgage Loan | Fixed Interest Rate | |
Mortgage Loans On Real Estate [Line Items] | |
Debt Instrument, weighted average interest rate | 4.55% |
Unconsolidated Properties | Mortgage Loan | Fixed Interest Rate | Minimum | |
Mortgage Loans On Real Estate [Line Items] | |
Debt instrument, interest rate during period | 4.06% |
Unconsolidated Properties | Mortgage Loan | Fixed Interest Rate | Maximum | |
Mortgage Loans On Real Estate [Line Items] | |
Debt instrument, interest rate during period | 5.56% |
Unconsolidated Properties | Mortgage Loan | Variable Interest Rate | |
Mortgage Loans On Real Estate [Line Items] | |
Debt Instrument, weighted average interest rate | 3.37% |
Unconsolidated Properties | Mortgage Loan | Variable Interest Rate | Minimum | |
Mortgage Loans On Real Estate [Line Items] | |
Debt instrument, interest rate during period | 3.19% |
Unconsolidated Properties | Mortgage Loan | Variable Interest Rate | Maximum | |
Mortgage Loans On Real Estate [Line Items] | |
Debt instrument, interest rate during period | 4.60% |
Investments in Partnerships -_3
Investments in Partnerships - Schedule of Principal Payments Based On Respective Partnership Interest (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Mortgage Loans On Real Estate [Line Items] | ||
Principal Amortization | $ 25,884 | |
Balloon Payments | 202,259 | |
Total | 228,143 | |
Property Total | 500,839 | |
Less: Unamortized debt issuance costs | 1,782 | |
Carrying value of mortgage notes payable | 499,057 | $ 507,090 |
2020 [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Principal Amortization | 4,378 | |
Balloon Payments | 0 | |
Total | 4,378 | |
Property Total | 8,801 | |
2021 [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Principal Amortization | 4,049 | |
Balloon Payments | 41,170 | |
Total | 45,219 | |
Property Total | 91,945 | |
2022 [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Principal Amortization | 3,738 | |
Balloon Payments | 21,500 | |
Total | 25,238 | |
Property Total | 93,476 | |
2023 [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Principal Amortization | 3,620 | |
Balloon Payments | 33,502 | |
Total | 37,122 | |
Property Total | 74,244 | |
2024 [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Principal Amortization | 2,886 | |
Balloon Payments | 0 | |
Total | 2,886 | |
Property Total | 5,772 | |
2025 and Thereafter [Member] | ||
Mortgage Loans On Real Estate [Line Items] | ||
Principal Amortization | 7,213 | |
Balloon Payments | 106,087 | |
Total | 113,300 | |
Property Total | $ 226,601 |
Investments in Partnerships -_4
Investments in Partnerships - Summary of Mortgage Loans Secured by Our Unconsolidated Properties (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Mar. 31, 2018 | Feb. 28, 2018 | Oct. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Partnership Mortgage Loan Activity [Line Items] | |||||
Mortgage loans payable, net | $ 899,753 | $ 1,047,906 | |||
Pavilion at Market East | |||||
Partnership Mortgage Loan Activity [Line Items] | |||||
Mortgage loans payable, net | $ 8,300 | ||||
Debt instrument, maturity month and year | 2021-02 | ||||
Pavilion at Market East | LIBOR | |||||
Partnership Mortgage Loan Activity [Line Items] | |||||
Stated Interest Rate | 2.85% | ||||
Gloucester Premium Outlets | |||||
Partnership Mortgage Loan Activity [Line Items] | |||||
Mortgage loans payable, net | $ 86,000 | ||||
Debt instrument, maturity month and year | 2022-03 | ||||
Gloucester Premium Outlets | LIBOR | |||||
Partnership Mortgage Loan Activity [Line Items] | |||||
Stated Interest Rate | 1.50% | ||||
Lehigh Valley Associates, LP | |||||
Partnership Mortgage Loan Activity [Line Items] | |||||
Mortgage loans payable, net | $ 200,000 | ||||
Fixed interest rate | 4.06% | ||||
Debt instrument, maturity month and year | 2027-11 |
Investments in Partnerships -_5
Investments in Partnerships - Summary of Mortgage Loans Secured by Our Unconsolidated Properties (Parenthetical) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Oct. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Feb. 28, 2018 | |
Partnership Mortgage Loan Activity [Line Items] | |||||||
Repayment of mortgage loans | $ 71,387 | $ 150,000 | |||||
Cash distributions from partnerships | $ 22,570 | $ 9,421 | $ 16,849 | ||||
Pavilion at Market East | |||||||
Partnership Mortgage Loan Activity [Line Items] | |||||||
Ownership percentage | 40.00% | ||||||
Mortgage loans payable, net | $ 3,100 | ||||||
Gloucester Premium Outlets | |||||||
Partnership Mortgage Loan Activity [Line Items] | |||||||
Ownership percentage | 25.00% | ||||||
Mortgage loans payable, net | $ 21,500 | ||||||
Lehigh Valley Associates, LP | |||||||
Partnership Mortgage Loan Activity [Line Items] | |||||||
Ownership percentage | 50.00% | ||||||
Mortgage loans payable, net | $ 96,400 | ||||||
Repayment of mortgage loans | 124,600 | ||||||
Cash distributions from partnerships | $ 35,300 | ||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 3,100 | ||||||
Accelerated amortization expense | $ 100 |
Financing Activity - Credit Agr
Financing Activity - Credit Agreements (Details) | May 24, 2018USD ($) | Dec. 31, 2019USD ($)AgreementqtrOccasion | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||
Outstanding line of credit | $ 255,000,000 | $ 65,000,000 | ||
Debt instrument, covenant compliance | As of December 31, 2019, we were in compliance with all such financial covenants. We anticipate not meeting certain financial covenants applicable under the credit agreements during 2020. See Going Concern Considerations section in Note 1. | |||
Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs, line of credit arrangements | $ 2,000,000 | |||
Term Loans | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | 550,000,000 | |||
2018 Revolving Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding line of credit | $ 255,000,000 | |||
Credit Agreements | ||||
Debt Instrument [Line Items] | ||||
Number of credit agreements | Agreement | 2 | |||
Deferred financing amortization | $ 400,000 | |||
Credit Agreements | Covenant Term One | ||||
Debt Instrument [Line Items] | ||||
Covenant compliance, Minimum Tangible Net Worth | $ 1,463,200,000 | |||
Covenant compliance, percent of net proceeds of all equity issuances | 75.00% | |||
Credit Agreements | Covenant Term Two | ||||
Debt Instrument [Line Items] | ||||
Total liabilities to gross asset value, ratio | 0.60 | |||
Covenant compliance, number of consecutive quarters total liabilities to gross asset value ratio exceeding threshold | qtr | 2 | |||
Covenant compliance, number of occasions total liabilities to gross asset value ratio exceeding threshold | Occasion | 2 | |||
Credit Agreements | Covenant Term Two | Maximum | ||||
Debt Instrument [Line Items] | ||||
Total liabilities to gross asset value, ratio | 0.625 | |||
Credit Agreements | Covenant Term Three | ||||
Debt Instrument [Line Items] | ||||
Covenant compliance, ratio of adjusted EBITDA to fixed charges, minimum | 1.50 | |||
Credit Agreements | Covenant Term Four, Through June 30, 2020 | ||||
Debt Instrument [Line Items] | ||||
Covenant compliance, minimum unencumbered debt yield | 0.110 | |||
Credit Agreements | Covenant Term Four, After June 30, 2020 Through June 30, 2021 | ||||
Debt Instrument [Line Items] | ||||
Covenant compliance, minimum unencumbered debt yield | 0.1125 | |||
Credit Agreements | Covenant Term Four, After June 30, 2021 | ||||
Debt Instrument [Line Items] | ||||
Covenant compliance, minimum unencumbered debt yield | 0.1150 | |||
Credit Agreements | Covenant Term Five | ||||
Debt Instrument [Line Items] | ||||
Covenant compliance, minimum unencumbered NOI to unsecured interest expense, ratio | 1.75 | |||
Credit Agreements | Covenant Term Six | ||||
Debt Instrument [Line Items] | ||||
Covenant compliance, secured indebtedness to gross asset value, maximum ratio | 0.60 | |||
Credit Agreements | Covenant Term Seven | ||||
Debt Instrument [Line Items] | ||||
Covenant compliance, maximum distribution percent of funds from operations | 95.00% | |||
Covenant compliance, maximum distribution percent of REIT taxable income | 110.00% | |||
Credit Agreements | Property With Average Sales Of More Than $500 Per Square Foot | ||||
Debt Instrument [Line Items] | ||||
Covenant compliance, capitalization rate | 6.50% | |||
Credit Agreements | Property Other Than With Average Sales Of $500 Per Square Foot | ||||
Debt Instrument [Line Items] | ||||
Covenant compliance, capitalization rate | 7.50% | |||
Credit Agreements | Term Loans | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 550,000,000 | |||
Deferred financing amortization | 760,000 | 763,000 | $ 759,000 | |
Credit Agreements | 2018 Revolving Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding line of credit | 255,000,000 | |||
Remaining borrowing capacity | 30,100,000 | |||
Maximum borrowing capacity | $ 400,000,000 | |||
Credit facility maturity date | 2022-05 | |||
Deferred financing amortization | $ 1,097,000 | $ 1,052,000 | $ 796,000 | |
Facility fee percentage | 0.30% | |||
Credit Agreements | Senior Unsecured Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 700,000 | |||
Credit Agreements | 2013 Revolving Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 400,000,000 | |||
Credit Agreements | 2018 Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 300,000,000 | |||
Credit facility maturity date | 2023-05 | |||
Credit Agreements | 2014 5-Year Term Loan | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 150,000,000 | |||
Credit Agreements | 2015 5-Year Term Loan | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 150,000,000 | |||
Credit Agreements | 2014 Seven Year Term Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding line of credit | $ 250,000,000 | |||
Credit facility maturity date | 2021-12 |
Financing Activity - Interest E
Financing Activity - Interest Expense and Deferred Financing Amortization (Details) - Credit Agreements - USD ($) $ in Thousands | May 24, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Deferred financing amortization | $ 400 | |||
2018 Revolving Facility | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 7,526 | $ 1,807 | $ 2,463 | |
Deferred financing amortization | 1,097 | 1,052 | 796 | |
Term Loans | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 20,922 | 17,585 | 14,935 | |
Deferred financing amortization | $ 760 | 763 | $ 759 | |
Accelerated financing fee | $ 363 |
Financing Activity - Applicable
Financing Activity - Applicable Credit Spread Over Libor at Various Leverage Levels (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Less than 0.450 to 1.00 | |
Debt Instrument [Line Items] | |
Total liabilities to gross asset value, ratio | 0.450 |
Equal to or greater than 0.450 to 1.00 but less than 0.500 to 1.00 | Minimum | |
Debt Instrument [Line Items] | |
Total liabilities to gross asset value, ratio | 0.450 |
Equal to or greater than 0.450 to 1.00 but less than 0.500 to 1.00 | Maximum | |
Debt Instrument [Line Items] | |
Total liabilities to gross asset value, ratio | 0.500 |
Equal to or greater than 0.500 to 1.00 but less than 0.550 to 1.00 | Minimum | |
Debt Instrument [Line Items] | |
Total liabilities to gross asset value, ratio | 0.500 |
Equal to or greater than 0.500 to 1.00 but less than 0.550 to 1.00 | Maximum | |
Debt Instrument [Line Items] | |
Total liabilities to gross asset value, ratio | 0.550 |
Equal to or greater than 0.550 to 1.00 | |
Debt Instrument [Line Items] | |
Total liabilities to gross asset value, ratio | 0.550 |
LIBOR | Less than 0.450 to 1.00 | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 1.20% |
LIBOR | Less than 0.450 to 1.00 | Term Loans | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 1.35% |
LIBOR | Equal to or greater than 0.450 to 1.00 but less than 0.500 to 1.00 | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 1.25% |
LIBOR | Equal to or greater than 0.450 to 1.00 but less than 0.500 to 1.00 | Term Loans | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 1.45% |
LIBOR | Equal to or greater than 0.500 to 1.00 but less than 0.550 to 1.00 | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 1.30% |
LIBOR | Equal to or greater than 0.500 to 1.00 but less than 0.550 to 1.00 | Term Loans | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 1.60% |
LIBOR | Equal to or greater than 0.550 to 1.00 | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 1.55% |
LIBOR | Equal to or greater than 0.550 to 1.00 | Term Loans | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 1.90% |
Base Rate | Less than 0.450 to 1.00 | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 0.20% |
Base Rate | Less than 0.450 to 1.00 | Term Loans | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 0.35% |
Base Rate | Equal to or greater than 0.450 to 1.00 but less than 0.500 to 1.00 | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 0.25% |
Base Rate | Equal to or greater than 0.450 to 1.00 but less than 0.500 to 1.00 | Term Loans | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 0.45% |
Base Rate | Equal to or greater than 0.500 to 1.00 but less than 0.550 to 1.00 | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 0.30% |
Base Rate | Equal to or greater than 0.500 to 1.00 but less than 0.550 to 1.00 | Term Loans | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 0.60% |
Base Rate | Equal to or greater than 0.550 to 1.00 | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 0.55% |
Base Rate | Equal to or greater than 0.550 to 1.00 | Term Loans | |
Debt Instrument [Line Items] | |
Stated Interest Rate | 0.90% |
Financing Activity - Consolidat
Financing Activity - Consolidated Mortgage Loan Activity (Details) - Mortgage Loans on Real Estate [Member] | 12 Months Ended |
Dec. 31, 2019MortgageLoan | |
Debt Instrument [Line Items] | |
Real Estate Properties Used As Collateral On Credit Facility | Mortgage | 10 |
Weighted average interest rate | 4.04% |
Fixed Rate Mortgages | |
Debt Instrument [Line Items] | |
Number of loans with fixed interest rates | 7 |
Weighted average interest rate | 4.08% |
Fixed Rate Mortgages | Minimum | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate during period | 3.88% |
Fixed Rate Mortgages | Maximum | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate during period | 5.95% |
Variable Rate Mortgages | |
Debt Instrument [Line Items] | |
Weighted average interest rate | 3.94% |
Number of loans with variable interest rates | 3 |
Financing Activity - Timing of
Financing Activity - Timing of Principal Payments and Terms of Mortgage Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total | ||
Carrying value of mortgage notes payable | $ 899,753 | $ 1,047,906 |
Mortgage Loan | ||
Total | ||
Less: Unamortized debt issuance costs | 1,800 | $ 3,100 |
Mortgage Loan | Consolidated Properties | ||
Principal Amortization | ||
2020 | 16,266 | |
2021 | 17,862 | |
2022 | 13,463 | |
2023 | 6,584 | |
2024 | 6,405 | |
2025 and thereafter | 4,406 | |
Total principal payments | 64,986 | |
Balloon Payments | ||
2020 | 27,161 | |
2021 | 188,785 | |
2022 | 355,988 | |
2023 | 53,299 | |
2024 | 0 | |
2025 and thereafter | 211,346 | |
Total principal payments | 836,579 | |
Total | ||
2020 | 43,427 | |
2021 | 206,647 | |
2022 | 369,451 | |
2023 | 59,883 | |
2024 | 6,405 | |
2025 and thereafter | 215,752 | |
Total principal payments | 901,565 | |
Less: Unamortized debt issuance costs | 1,812 | |
Carrying value of mortgage notes payable | $ 899,753 |
Financing Activity - Carrying a
Financing Activity - Carrying and Fair Values of Mortgage Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Mortgage loans, carrying value | $ 899,753 | $ 1,047,906 |
Carrying Value | Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Mortgage loans, carrying value | 899,800 | 1,047,900 |
Fair Value | Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Mortgage loans, fair value | $ 873,900 | $ 1,002,300 |
Financing Activity - Carrying_2
Financing Activity - Carrying and Fair Values of Mortgage Loans (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, line of credit arrangements | $ 1.8 | $ 3.1 |
Financing Activity - Mortgage L
Financing Activity - Mortgage Loan Activity (Details) - USD ($) $ in Millions | Jan. 19, 2018 | Mar. 31, 2016 | Dec. 31, 2018 |
Francis Scott Key Mall | |||
Mortgage Loan Activity [Line Items] | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, New Mortgage Loan | $ 68.5 | ||
Debt Instrument, Maturity Date | Jan. 31, 2022 | ||
Francis Scott Key Mall | LIBOR | |||
Mortgage Loan Activity [Line Items] | |||
Stated Interest Rate | 2.60% | ||
Viewmont Mall | |||
Mortgage Loan Activity [Line Items] | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, New Mortgage Loan | $ 10.2 | $ 67.2 | |
Debt Instrument, Maturity Date | Mar. 31, 2021 | ||
Viewmont Mall | LIBOR | |||
Mortgage Loan Activity [Line Items] | |||
Stated Interest Rate | 2.35% |
Financing Activity - Mortgage_2
Financing Activity - Mortgage Loan Activity (Parenthetical) (Details) - USD ($) $ in Millions | Jan. 19, 2018 | Mar. 31, 2016 | Dec. 31, 2018 |
Francis Scott Key Mall | |||
Mortgage Loan Activity [Line Items] | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, New Mortgage Loan | $ 68.5 | ||
Viewmont Mall | |||
Mortgage Loan Activity [Line Items] | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, New Mortgage Loan | $ 10.2 | $ 67.2 |
Financing Activity - Other Mort
Financing Activity - Other Mortgage Loan Activity (Details) - USD ($) $ in Thousands | Sep. 26, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||
Gain (loss) on debt extinguishment, net | $ 24,859 | $ 0 | $ 0 | |||
Mortgage loans, carrying value | 899,753 | $ 1,047,906 | ||||
Mortgage Loan | ||||||
Debt Instrument [Line Items] | ||||||
Mortgage loans, carrying value | 901,600 | |||||
Capital City Mall, Camp Hill, Pennsylvania | Commercial Real Estate | Mortgage Loan | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Debt | $ 58,500 | |||||
Gain (loss) on debt extinguishment, net | $ (4,800) | |||||
Wyoming Valley Mall | Commercial Real Estate | Mortgage Loan | ||||||
Debt Instrument [Line Items] | ||||||
Gain (loss) on debt extinguishment, net | $ 29,600 | 29,600 | ||||
Debt default, amount | 72,800 | |||||
Repayments of cash and escrow balance | $ 7,500 | $ 7,500 | ||||
Valley View Mall | Commercial Real Estate | Mortgage Loan | ||||||
Debt Instrument [Line Items] | ||||||
Mortgage loans, carrying value | $ 27,400 | |||||
Debt instrument, maturity month and year | 2020-07 |
Equity Offerings - Preferred Sh
Equity Offerings - Preferred Share Offerings (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 12, 2017 | Sep. 11, 2017 | Oct. 04, 2017 | Jan. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 13, 2017 | Jan. 27, 2017 |
Class Of Stock [Line Items] | ||||||||
Convertible Preferred Stock, Settlement Terms | We may not redeem the Series C Preferred Shares and the Series D Preferred Shares before January 27, 2022 and September 15, 2022, respectively, except to preserve our status as a REIT or upon the occurrence of a Change of Control, as defined in the Trust Agreement addendums designating the Series C Preferred Shares and Series D Preferred Shares. On and after January 27, 2022 for the Series C Preferred Shares and September 15, 2022 for the Series D Preferred Shares, we may redeem any or all of the Series C Preferred Shares or Series D Preferred Shares at $25.00 per share plus any accrued and unpaid dividends. In addition, upon the occurrence of a Change of Control, we may redeem any or all of the Series C Preferred Shares or Series D Preferred Shares for cash within 120 days after the first date on which such Change of Control occurred, at $25.00 per share plus any accrued and unpaid dividends. The Series C Preferred Shares and Series D Preferred Shares have no stated maturity, are not subject to any sinking fund or mandatory redemption provisions, and will remain outstanding indefinitely unless we redeem or otherwise repurchase them or they are converted. | |||||||
Redemption price per share | $ 25 | |||||||
Series C Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred Stock, Shares Issued | 6,900,000 | 6,900,000 | 6,900,000 | |||||
Shares Issued, Price Per Share | $ 25 | |||||||
Proceeds from Issuance or Sale of Equity | $ 166.3 | |||||||
Underwriting Discount On Public Offering | $ 5.4 | |||||||
Underwriting Discount Per Share On Public Offering | $ 0.7875 | |||||||
Equity offering expenses | $ 0.8 | |||||||
Repayments of Debt | $ 117 | |||||||
Preferred shares dividend rate | 7.20% | |||||||
Series D Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred Stock, Shares Issued | 5,000,000 | 5,000,000 | 5,000,000 | |||||
Shares Issued, Price Per Share | $ 25 | |||||||
Proceeds from Issuance or Sale of Equity | $ 120.5 | |||||||
Underwriting Discount On Public Offering | $ 4 | |||||||
Underwriting Discount Per Share On Public Offering | $ 0.7875 | |||||||
Equity offering expenses | $ 0.5 | |||||||
Preferred shares dividend rate | 6.875% | |||||||
Series D Preferred Stock | Over-Allotment Option | ||||||||
Class Of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 200,000 | |||||||
Series A Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred shares dividend rate | 8.25% | |||||||
Redemption price per share | $ 25 |
Equity Offerings - Preferred _2
Equity Offerings - Preferred Share Redemption (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 12, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 13, 2017 |
Class Of Stock [Line Items] | |||||
Preferred Shares redeemed | $ (115,000) | ||||
Redemption price per share | $ 25 | ||||
Premium on redemption | $ 0 | $ 0 | $ 4,103 | ||
Series A Preferred Stock | |||||
Class Of Stock [Line Items] | |||||
Redemption of shares | 4,600,000 | ||||
Preferred Shares redeemed | $ 115,000 | ||||
Redemption price per share | $ 25 | ||||
Accrued and unpaid dividend | $ 700,000 | ||||
Premium on redemption | $ 4,100 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) $ in Millions | Dec. 31, 2019USD ($) |
Derivative Instruments [Line Items] | |
Estimate increase to interest expense | $ 2.7 |
Weighted average interest rate | 1.96% |
Derivative, notional amount | $ 895.6 |
Interest rate derivative liabilities, at fair value | 13.1 |
Derivative asset, fair value, gross liability | $ 12.4 |
Interest Rate Swap | |
Derivative Instruments [Line Items] | |
Weighted average interest rate | 1.86% |
Derivative, notional amount | $ 795.6 |
Interest Rate Forward Starting Swaps 2023 Maturity | |
Derivative Instruments [Line Items] | |
Weighted average interest rate | 2.75% |
Derivative, notional amount | $ 100 |
Derivatives - Fair Value of Der
Derivatives - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate Notional Value | $ 895.6 | |
Aggregate Fair Value | $ (11.9) | $ 7 |
Weighted Average Interest Rate | 1.96% | |
Interest Rate Swaps 2020 Maturity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate Notional Value | $ 100 | |
Aggregate Fair Value | $ 0.2 | 1.9 |
Weighted Average Interest Rate | 1.23% | |
Interest Rate Swaps 2021 Maturity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate Notional Value | $ 495.6 | |
Aggregate Fair Value | $ (1.4) | 8.1 |
Weighted Average Interest Rate | 1.66% | |
Interest Rate Swaps 2023 Maturity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate Notional Value | $ 200 | |
Aggregate Fair Value | $ (7.3) | (0.4) |
Weighted Average Interest Rate | 2.67% | |
Interest Rate Forward Starting Swaps 2023 Maturity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate Notional Value | $ 100 | |
Aggregate Fair Value | $ (3.4) | $ (2.6) |
Weighted Average Interest Rate | 2.75% |
Derivatives - Effect of Our Der
Derivatives - Effect of Our Derivative Financial Instruments on Our Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Instruments | $ (15,800) | $ (400) | $ 4,000 |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Interest Expense | (3,100) | 2,400 | 2,300 |
Interest Expense | $ (63,987) | $ (61,355) | $ (58,430) |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Benefit Plans [Line Items] | |||
Percentage of defined plan agreement | 30.00% | ||
Contributions to plan | $ 900 | $ 900 | $ 900 |
Supplemental Retirement Plans expenses | $ 200 | $ 200 | $ 300 |
Employee Share Purchase Plan | |||
Benefit Plans [Line Items] | |||
Common stock purchase at a discount | 15.00% | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 44,000 | 31,000 | 38,000 |
Shares purchase consideration | $ 200 | $ 200 | $ 400 |
Expenses recorded to the share purchase plan | $ 48 | $ 43 | $ 100 |
Share Based Compensation - Addi
Share Based Compensation - Additional Information (Details) - USD ($) | Feb. 24, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
2003 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total remaining number of common shares to be issued | 1,145,956 | ||||
Time Based Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate fair value of shares granted | $ 5,600,000 | $ 5,100,000 | $ 4,800,000 | ||
Unrecognized compensation expense | $ 4,313,000 | ||||
Weighted average period | 9 months 18 days | ||||
Compensation expense, 2020 | $ 2,811,000 | ||||
Restricted Share Unit | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate compensation expense | $ 1,800,000 | $ 2,100,000 | 1,300,000 | ||
Shares vest over period | 3 years | ||||
Accelerated amortization expense | $ 800,000 | $ 400,000 | |||
Future aggregate compensation expense | $ 2,800,000 | ||||
Shares issued | 0 | 0 | 0 | ||
2020 RSUs | Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of awards granted | 709,943 | ||||
Performance measures of core mall non-anchor occupancy period | 3 years | ||||
Performance measure fixed charge coverage ratio period | 3 years | ||||
Performance measure of core mall non-anchor occupancy weighted percentage | 50.00% | ||||
Performance measures of fixed charge coverage ratio weighted percentage. | 50.00% | ||||
Non-Employee Trustees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate compensation expense | $ 7,000,000 | $ 6,900,000 | $ 5,700,000 | ||
Accrued amortization relating to employee separation | 1,100,000 | 100,000 | 200,000 | ||
Income tax benefit for share based compensation arrangements | 0 | ||||
Compensation costs capitalized | 200,000 | 100,000 | 100,000 | ||
Non-Employee Trustees | Time Based Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate compensation expense | 700,000 | 500,000 | 500,000 | ||
Aggregate fair value of shares granted | 700,000 | $ 800,000 | $ 700,000 | ||
Unrecognized compensation expense | $ 284,000 | ||||
Shares vest over period | 1 year | ||||
Number of awards granted | 114,800 | 68,698 | 64,358 | ||
Weighted average grant date fair value | $ 6.35 | $ 11.17 | $ 11.45 | ||
Fair value of shares vested | $ 800,000 | $ 600,000 | $ 800,000 | ||
Compensation expense, 2020 | 284,000 | ||||
Employees | Time Based Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate compensation expense | 3,700,000 | 4,300,000 | 3,900,000 | ||
Accrued amortization relating to employee separation | 200,000 | 100,000 | 200,000 | ||
Aggregate fair value of shares granted | 4,900,000 | $ 4,300,000 | $ 4,000,000 | ||
Unrecognized compensation expense | $ 4,029,000 | ||||
Number of awards granted | 683,570 | 392,697 | 245,950 | ||
Weighted average grant date fair value | $ 7.15 | $ 10.99 | $ 16.43 | ||
Fair value of shares vested | $ 3,800,000 | $ 2,000,000 | $ 3,900,000 | ||
Compensation expense, 2020 | $ 2,527,000 | ||||
Employees | Time Based Restricted Stock Awards | Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of awards granted | 1,093,292 | ||||
Employees | Time Based Restricted Stock Awards | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares vest over period | 1 year | ||||
Employees | Time Based Restricted Stock Awards | Minimum | Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares vest over period | 2 years | ||||
Employees | Time Based Restricted Stock Awards | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares vest over period | 3 years | ||||
Employees | Time Based Restricted Stock Awards | Maximum | Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares vest over period | 3 years | ||||
Employees | Outperformance Units (“OPUs”) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate compensation expense | $ 800,000 | ||||
Accrued amortization relating to employee separation | $ 100,000 | ||||
Number of awards granted | 517,783 | ||||
Employees | Outperformance Units (“OPUs”) | Vest Immediately | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards vesting, percentage | 50.00% | ||||
Employees | Outperformance Units (“OPUs”) | Subject to an Additional One-year Vesting Requirement | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares vest over period | 1 year | ||||
Awards vesting, percentage | 25.00% | ||||
Employees | Outperformance Units (“OPUs”) | Subject to an Additional Two-year Vesting Requirement | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares vest over period | 2 years | ||||
Awards vesting, percentage | 25.00% |
Share Based Compensation - Summ
Share Based Compensation - Summary of Status of Unvested Restricted Shares and Changes (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested Shares, Beginning Balance | 621,398 | 449,422 | 386,412 |
Unvested, Shares granted | 798,370 | 461,395 | 336,296 |
Unvested, Shares vested | (349,533) | (260,178) | (238,859) |
Unvested, Shares forfeited | (131,971) | (29,241) | (34,427) |
Unvested Shares, Ending Balance | 938,264 | 621,398 | 449,422 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 13.29 | $ 16.85 | $ 21.88 |
Weighted Average Grant Date Fair Value, Shares granted | 7.04 | 11.02 | 14.95 |
Weighted Average Grant Date Fair Value, Shares vested | 13.14 | 16.58 | 19.56 |
Weighted Average Grant Date Fair Value, Shares forfeited | 8.75 | 14.17 | 18 |
Weighted Average Grant Date Fair Value, Ending Balance | $ 8.67 | $ 13.29 | $ 16.85 |
Share Based Compensation - Su_2
Share Based Compensation - Summary of Future Compensation Expense (Details) - Time Based Restricted Stock Awards $ in Thousands | Dec. 31, 2019USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2020 | $ 2,811 |
2021 | 1,352 |
2022 | 150 |
Total | 4,313 |
Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2020 | 2,527 |
2021 | 1,352 |
2022 | 150 |
Total | 4,029 |
Non-Employee Trustees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2020 | 284 |
Total | $ 284 |
Share Based Compensation - Assu
Share Based Compensation - Assumptions Used in Monte Carlo Simulations Used to Determine Aggregate Fair Values (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 29, 2019 | Jan. 19, 2018 | Feb. 27, 2017 |
Absolute TSR RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs granted | 210,193 | 115,614 | |
Aggregate fair value of shares granted | $ 1,550 | $ 1,336 | |
Weighted average fair value per share | $ 7.38 | $ 10.93 | |
Volatility | 40.30% | 31.60% | |
Risk free interest rate | 2.58% | 2.19% | |
Relative TSR RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs granted | 210,193 | 115,614 | 140,490 |
Aggregate fair value of shares granted | $ 1,890 | $ 1,779 | $ 1,620 |
Weighted average fair value per share | $ 8.99 | $ 14.56 | $ 11.53 |
Volatility | 40.30% | 31.60% | 25.80% |
Risk free interest rate | 2.58% | 2.19% | 1.42% |
PREIT Stock Beta compared to Dow Jones US Real Estate Index | 0.706 |
Leases - As Lessee (Details)
Leases - As Lessee (Details) | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Lessee, operating lease, renewal term | 60 years |
Lessee, Operating Lease, Existence of Option to Extend | true |
Lessor, Operating Lease, Existence of Option to Extend | false |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Lessee, operating lease, term of contract | 3 years |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Lessee, operating lease, term of contract | 40 years |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Amortization of right-of-use assets | $ 750 |
Interest on lease liabilities | 294 |
Operating lease costs | 3,515 |
Variable lease costs | 622 |
Total lease costs | 5,181 |
Solar Panel Leases | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Amortization of right-of-use assets | 750 |
Interest on lease liabilities | 294 |
Total lease costs | 1,044 |
Ground Leases | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease costs | 1,583 |
Variable lease costs | 165 |
Total lease costs | 1,748 |
Office, equipment, and vehicle leases | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease costs | 1,932 |
Variable lease costs | 457 |
Total lease costs | $ 2,389 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows and Terms (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows used for finance leases | $ 294 |
Operating cash flows used for operating leases | 2,205 |
Financing cash flows used for finance leases | $ 632 |
Weighted average remaining lease term-finance leases (months) | 99 months |
Weighted average remaining lease term-operating leases (months) | 306 months |
Weighted average discount rate-finance leases | 4.42% |
Weighted average discount rate-operating leases | 6.42% |
Leases - Future Payments Agains
Leases - Future Payments Against Lease Liabilities Maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Finance leases | |
2020 | $ 925 |
2021 | 925 |
2022 | 925 |
2023 | 925 |
2024 | 925 |
Thereafter | 2,999 |
Total undiscounted lease payments | 7,624 |
Less imputed interest | (1,242) |
Total lease liabilities | 6,382 |
Operating leases | |
2020 | 2,237 |
2021 | 2,730 |
2022 | 2,538 |
2023 | 2,485 |
2024 | 2,373 |
Thereafter | 46,853 |
Total undiscounted lease payments | 59,216 |
Less imputed interest | (28,965) |
Total lease liabilities | 30,251 |
Total | |
2020 | 3,162 |
2021 | 3,655 |
2022 | 3,463 |
2023 | 3,410 |
2024 | 3,298 |
Thereafter | 49,852 |
Total undiscounted lease payments | 66,840 |
Less imputed interest | (30,207) |
Total lease liabilities | $ 36,633 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Agreements (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Finance leases | |
2019 | $ 925 |
2020 | 925 |
2021 | 925 |
2022 | 925 |
2023 | 925 |
Thereafter | 3,923 |
Total | 8,548 |
Operating leases | |
2019 | 3,264 |
2020 | 2,237 |
2021 | 2,730 |
2022 | 2,538 |
2023 | 2,485 |
Thereafter | 49,226 |
Total | 62,480 |
Total | |
2019 | 4,189 |
2020 | 3,162 |
2021 | 3,655 |
2022 | 3,463 |
2023 | 3,410 |
Thereafter | 53,149 |
Total | $ 71,028 |
Leases - Lessor Payments to be
Leases - Lessor Payments to be Received, Maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 205,574 |
2021 | 187,241 |
2022 | 168,671 |
2023 | 149,296 |
2024 | 127,355 |
2025 and thereafter | 386,280 |
Total payments to be received | $ 1,224,417 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |||
Total rent expense | $ 1.7 | $ 1.3 | $ 1.3 |
Health Insurance Premiums paid to related party | $ 2.5 | $ 2.7 |
Commitments and Contingencies -
Commitments and Contingencies - Contractual Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2018 | |
Fashion District Philadelphia | ||
Other Commitments [Line Items] | ||
Unaccrued contractual obligation and other commitments | $ 33.1 | |
Ownership percentage | 50.00% | 50.00% |
Percentage of contractual obligation | 100.00% | |
Fashion District Philadelphia | Macerich | Corporate Joint Venture | ||
Other Commitments [Line Items] | ||
Unaccrued contractual obligation and other commitments | $ 300 | |
Contractual obligation, period after commencement | 48 months | |
Construction in Progress | ||
Other Commitments [Line Items] | ||
Unaccrued contractual obligation and other commitments | $ 75.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Employment Agreements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)Officer | |
Other Commitments [Line Items] | |
Number of officer in employment agreements | Officer | 1 |
Aggregate base compensation | $ | $ 0.9 |
Officer | |
Other Commitments [Line Items] | |
Renewal of agreements term | 1 year |
Commitments and Contingencies_3
Commitments and Contingencies - Provision for Employee Separation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Severance costs | $ 3.7 | $ 1.1 | $ 1.3 |
Accrued severance | $ 3.5 |
Commitments and Contingencies_4
Commitments and Contingencies - Property Damage from Natural Disaster (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |||
Net recoveries | $ 3,861 | $ 689 | |
Insurance recoveries, net | 4,362 | 689 | $ 0 |
Jacksonville Mall, Jacksonville, North Carolina | |||
Loss Contingencies [Line Items] | |||
Net recoveries | 4,400 | 700 | |
Business interruption recoveries | $ 500 | ||
Loss Contingency, Estimate of Possible Loss | 2,300 | ||
Insurance recoveries, net | $ 3,000 |
Commitments and Contingencies_5
Commitments and Contingencies - Environmental (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Environmental insurance coverage claims per occurrence | $ 25 |
Environmental insurance coverage claims aggregate | $ 25 |
Historic Tax Credits - Addition
Historic Tax Credits - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Historic Tax Credits [Abstract] | ||||
Historic Tax Credit put option received | $ 1 | |||
Amount paid in cash | 0.9 | |||
Priority Return Expense | $ 0.2 | $ 0.2 | 0.1 | |
Tax Credit Amortization Income | $ 1 | $ 1.9 | ||
Interest and Other Income | $ 0.8 | $ 1.8 |
Summary of Quarterly Results -
Summary of Quarterly Results - Summary of Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 88,721 | $ 81,374 | $ 81,392 | $ 85,305 | $ 96,042 | $ 88,103 | $ 91,973 | $ 86,282 | $ 336,792 | $ 362,400 | $ 367,490 |
Net income (loss) | (15,413) | 24,716 | (6,080) | (16,223) | (88,834) | (1,636) | (32,321) | (3,712) | (13,000) | (126,503) | (32,848) |
Net income (loss) attributable to PREIT | $ (14,848) | $ 24,262 | $ (5,751) | $ (14,535) | $ (78,782) | $ (745) | $ (28,201) | $ (2,601) | $ (10,872) | $ (110,329) | $ (25,953) |
Basic and diluted earnings (loss) per share | $ (0.29) | $ 0.22 | $ (0.17) | $ (0.30) | $ (1.23) | $ (0.11) | $ (0.50) | $ (0.14) | $ (0.52) | $ (1.98) | $ (0.84) |
Summary of Quarterly Results _3
Summary of Quarterly Results - Summary of Unaudited Quarterly Financial Information (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Impairment losses | $ 3,500 | $ 1,500 | $ 103,200 | $ 34,200 | $ 1,455 | $ 137,487 | $ 55,793 | |||
Gain on sales of real estate by equity method investee | $ 600 | $ 2,800 | 553 | 2,772 | 6,567 | |||||
Gain on sales of real estate | 100 | $ 1,200 | $ 1,500 | 800 | $ 700 | 2,744 | 1,722 | (27) | ||
Gain on sales of interest in non operating real estate | $ 2,700 | $ 8,100 | $ 2,718 | $ 8,126 | $ 1,270 |
Schedule III - Summary of Real
Schedule III - Summary of Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 388,326 | |||
Initial Cost of Building & Improvements | 1,601,543 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 1,221,057 | |||
Balance of Land and Land Held for Development | 457,887 | |||
Balance of Building & Improvements and Construction in Progress | 2,753,039 | |||
Accumulated Depreciation Balance | 1,202,722 | $ 1,118,582 | $ 1,111,007 | $ 1,060,845 |
Current Encumbrance | 901,565 | |||
Capital City Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | 11,380 | |||
Initial Cost of Building & Improvements | 65,575 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 59,801 | |||
Balance of Land and Land Held for Development | 11,321 | |||
Balance of Building & Improvements and Construction in Progress | 125,435 | |||
Accumulated Depreciation Balance | $ 51,408 | |||
Date of Acquisition/ Construction | 2003 | |||
Life of Depre- ciation | 40 years | |||
Cherry Hill Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 29,938 | |||
Initial Cost of Building & Improvements | 185,611 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 265,297 | |||
Balance of Land and Land Held for Development | 48,608 | |||
Balance of Building & Improvements and Construction in Progress | 432,238 | |||
Accumulated Depreciation Balance | 261,070 | |||
Current Encumbrance | $ 268,753 | |||
Date of Acquisition/ Construction | 2003 | |||
Life of Depre- ciation | 40 years | |||
Cumberland Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 8,711 | |||
Initial Cost of Building & Improvements | 43,889 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 31,394 | |||
Balance of Land and Land Held for Development | 9,842 | |||
Balance of Building & Improvements and Construction in Progress | 74,152 | |||
Accumulated Depreciation Balance | 31,239 | |||
Current Encumbrance | $ 42,247 | |||
Date of Acquisition/ Construction | 2005 | |||
Life of Depre- ciation | 40 years | |||
Dartmouth Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 7,015 | |||
Initial Cost of Building & Improvements | 28,328 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 52,872 | |||
Balance of Land and Land Held for Development | 7,021 | |||
Balance of Building & Improvements and Construction in Progress | 81,194 | |||
Accumulated Depreciation Balance | 44,318 | |||
Current Encumbrance | $ 58,288 | |||
Date of Acquisition/ Construction | 1998 | |||
Life of Depre- ciation | 40 years | |||
Exton Square Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 19,976 | |||
Initial Cost of Building & Improvements | 103,955 | |||
Cost of Improvements Net of Retirements and Impairment Charges | (74,961) | |||
Balance of Land and Land Held for Development | 23,714 | |||
Balance of Building & Improvements and Construction in Progress | 25,256 | |||
Accumulated Depreciation Balance | $ 11,470 | |||
Date of Acquisition/ Construction | 2003 | |||
Life of Depre- ciation | 40 years | |||
Francis Scott Key Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 9,786 | |||
Initial Cost of Building & Improvements | 47,526 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 40,644 | |||
Balance of Land and Land Held for Development | 9,440 | |||
Balance of Building & Improvements and Construction in Progress | 88,516 | |||
Accumulated Depreciation Balance | 43,141 | |||
Current Encumbrance | $ 68,469 | |||
Date of Acquisition/ Construction | 2003 | |||
Life of Depre- ciation | 40 years | |||
Jacksonville Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 9,913 | |||
Initial Cost of Building & Improvements | 47,139 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 36,515 | |||
Balance of Land and Land Held for Development | 9,913 | |||
Balance of Building & Improvements and Construction in Progress | 83,654 | |||
Accumulated Depreciation Balance | $ 40,110 | |||
Date of Acquisition/ Construction | 2003 | |||
Life of Depre- ciation | 40 years | |||
Magnolia Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 8,149 | |||
Initial Cost of Building & Improvements | 42,302 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 56,657 | |||
Balance of Land and Land Held for Development | 14,511 | |||
Balance of Building & Improvements and Construction in Progress | 92,597 | |||
Accumulated Depreciation Balance | $ 49,356 | |||
Date of Acquisition/ Construction | 1998 | |||
Life of Depre- ciation | 40 years | |||
Monroe Land | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 1,177 | |||
Balance of Land and Land Held for Development | $ 1,177 | |||
Date of Acquisition/ Construction | 2006 | |||
Life of Depre- ciation | 10 years | |||
Moorestown Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 10,934 | |||
Initial Cost of Building & Improvements | 62,995 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 112,615 | |||
Balance of Land and Land Held for Development | 23,060 | |||
Balance of Building & Improvements and Construction in Progress | 163,484 | |||
Accumulated Depreciation Balance | $ 72,684 | |||
Date of Acquisition/ Construction | 2003 | |||
Life of Depre- ciation | 40 years | |||
Patrick Henry Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 16,075 | |||
Initial Cost of Building & Improvements | 86,643 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 53,740 | |||
Balance of Land and Land Held for Development | 16,397 | |||
Balance of Building & Improvements and Construction in Progress | 140,061 | |||
Accumulated Depreciation Balance | 73,125 | |||
Current Encumbrance | $ 88,910 | |||
Date of Acquisition/ Construction | 2003 | |||
Life of Depre- ciation | 40 years | |||
Plymouth Meeting Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 29,265 | |||
Initial Cost of Building & Improvements | 58,388 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 153,745 | |||
Balance of Land and Land Held for Development | 31,738 | |||
Balance of Building & Improvements and Construction in Progress | 209,660 | |||
Accumulated Depreciation Balance | $ 99,496 | |||
Date of Acquisition/ Construction | 2003 | |||
Life of Depre- ciation | 40 years | |||
The Mall at Prince Georges | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 13,065 | |||
Initial Cost of Building & Improvements | 57,686 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 74,504 | |||
Balance of Land and Land Held for Development | 13,066 | |||
Balance of Building & Improvements and Construction in Progress | 132,189 | |||
Accumulated Depreciation Balance | $ 63,944 | |||
Date of Acquisition/ Construction | 1998 | |||
Life of Depre- ciation | 40 years | |||
Springfield Town Center | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 119,912 | |||
Initial Cost of Building & Improvements | 353,551 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 22,736 | |||
Balance of Land and Land Held for Development | 119,912 | |||
Balance of Building & Improvements and Construction in Progress | 376,287 | |||
Accumulated Depreciation Balance | $ 67,344 | |||
Date of Acquisition/ Construction | 2015 | |||
Life of Depre- ciation | 40 years | |||
Sunrise Plaza Land | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 395 | |||
Cost of Improvements Net of Retirements and Impairment Charges | (29) | |||
Balance of Land and Land Held for Development | $ 366 | |||
Date of Acquisition/ Construction | 2005 | |||
Life of Depre- ciation | 0 years | |||
Swedes Square Land | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 189 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 36 | |||
Balance of Land and Land Held for Development | $ 225 | |||
Date of Acquisition/ Construction | 2004 | |||
Life of Depre- ciation | 0 years | |||
Valley Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 11,956 | |||
Initial Cost of Building & Improvements | 57,931 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 75,356 | |||
Balance of Land and Land Held for Development | 23,761 | |||
Balance of Building & Improvements and Construction in Progress | 121,482 | |||
Accumulated Depreciation Balance | $ 48,093 | |||
Date of Acquisition/ Construction | 2003 | |||
Life of Depre- ciation | 40 years | |||
Valley View Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 9,402 | |||
Initial Cost of Building & Improvements | 45,351 | |||
Cost of Improvements Net of Retirements and Impairment Charges | (18,564) | |||
Balance of Land and Land Held for Development | 4,204 | |||
Balance of Building & Improvements and Construction in Progress | 31,986 | |||
Accumulated Depreciation Balance | 12,600 | |||
Current Encumbrance | $ 27,429 | |||
Date of Acquisition/ Construction | 2003 | |||
Life of Depre- ciation | 40 years | |||
Viewmont Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 12,505 | |||
Initial Cost of Building & Improvements | 61,519 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 47,962 | |||
Balance of Land and Land Held for Development | 12,606 | |||
Balance of Building & Improvements and Construction in Progress | 109,380 | |||
Accumulated Depreciation Balance | 49,593 | |||
Current Encumbrance | $ 67,185 | |||
Date of Acquisition/ Construction | 2003 | |||
Life of Depre- ciation | 40 years | |||
Willow Grove Park | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 26,748 | |||
Initial Cost of Building & Improvements | 131,189 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 102,878 | |||
Balance of Land and Land Held for Development | 36,412 | |||
Balance of Building & Improvements and Construction in Progress | 224,403 | |||
Accumulated Depreciation Balance | 105,214 | |||
Current Encumbrance | $ 156,444 | |||
Date of Acquisition/ Construction | 2003 | |||
Life of Depre- ciation | 40 years | |||
Woodland Mall | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial Cost of Land | $ 31,835 | |||
Initial Cost of Building & Improvements | 121,965 | |||
Cost of Improvements Net of Retirements and Impairment Charges | 127,859 | |||
Balance of Land and Land Held for Development | 40,593 | |||
Balance of Building & Improvements and Construction in Progress | 241,065 | |||
Accumulated Depreciation Balance | 78,517 | |||
Current Encumbrance | $ 123,840 | |||
Date of Acquisition/ Construction | 2005 | |||
Life of Depre- ciation | 40 years |
Schedule III - Summary of Rea_2
Schedule III - Summary of Real Estate and Accumulated Depreciation (Details) (Parenthetical) $ in Millions | Dec. 31, 2019USD ($) |
Mortgage Loan | |
Real Estate and Accumulated Depreciation [Line Items] | |
Debt Issuance Costs, Net | $ 1.8 |
Schedule III - Additional Infor
Schedule III - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Real Estate And Accumulated Depreciation Disclosure [Abstract] | ||
Real estate, federal income tax cost basis | $ 3,132.2 | $ 3,302.7 |
Real estate, federal income tax depreciated basis | $ 2,225.4 | $ 2,353.4 |
Schedule III- Summary of Change
Schedule III- Summary of Changes in Total Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | |||
Balance, beginning of year | $ 3,184,594 | $ 3,299,702 | $ 3,300,014 |
Improvements and development | 137,593 | 125,616 | 502,077 |
Acquisitions | 0 | 21,250 | 2,613 |
Impairment of assets | (3,989) | (201,818) | (89,101) |
Dispositions | (81,118) | (4,856) | (402,783) |
Write-off of fully depreciated assets | (12,031) | (32,993) | (13,118) |
Reclassification to held for sale | (14,123) | (22,307) | 0 |
Balance, end of year | 3,210,926 | 3,184,594 | 3,299,702 |
Balance, end of year – held for sale | 15,653 | 22,307 | 0 |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | |||
Balance, beginning of year | 1,118,582 | 1,111,007 | 1,060,845 |
Depreciation expense | 125,495 | 120,718 | 118,485 |
Impairment of assets | (484) | (75,586) | (39,264) |
Dispositions | (25,693) | (4,564) | (15,941) |
Write-off of fully depreciated assets | (12,031) | (32,993) | (13,118) |
Reclassification to held for sale | (3,147) | 0 | 0 |
Balance, end of year | 1,202,722 | 1,118,582 | 1,111,007 |
Balance, end of year – held for sale | $ 3,147 | $ 0 | $ 0 |