Financing Activity (Tables)

9 Months Ended

Sep. 30, 2013

Applicable Credit Spread Over Libor at Various Leverage Levels

In determining PREIT’s 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.



Level	Ratio of Total Liabilities to Gross Asset Value	Applicable Margin
1	Less than 0.450 to 1.00	1.50	%
2	Equal to or greater than 0.450 to 1.00 but less than 0.500 to 1.00	1.70	%
3	Equal to or greater than 0.500 to 1.00 but less than 0.550 to 1.00	1.85	%
4	Equal to or greater than 0.550 to 1.00	2.05	%

Carrying and Fair Values of Mortgage Loans

The carrying value and estimated fair values of mortgage loans based on interest rates and market conditions at September 30, 2013 and December 31, 2012 were as follows:



	September 30, 2013				December 31, 2012
(in millions of dollars)	Carrying Value		Fair Value		Carrying Value		Fair Value
Mortgage loans	$	1,538.1	$	1,519.7	$	1,718.1	$	1,739.7

Mortgage Loan Activity

The following table presents the mortgage loans we have entered into since January 1, 2013 relating to our consolidated properties:



Financing Date	Property	Amount Financed or Extended (in millions of dollars)		Stated Interest Rate	Maturity
2013 Activity:
February	Francis Scott Key Mall⁽¹⁾⁽²⁾	$	62.6	LIBOR plus 2.60%	March 2018
February	Lycoming Mall ⁽³⁾	35.5		LIBOR plus 2.75%	March 2018
February	Viewmont Mall⁽¹⁾	48.0		LIBOR plus 2.60%	March 2018
March	Dartmouth Mall	67.0		3.97% fixed	April 2018
September	Logan Valley Mall⁽⁴⁾	51.0		LIBOR plus 2.10%	September 2014

_________________________


⁽¹⁾	Interest only payments.


⁽²⁾	The mortgage loan may be increased by $7.9 million based on certain prescribed conditions.

⁽³⁾

The initial amount of the mortgage loan was $28.0 million. We took additional draws of $5.0 million in October 2009 and $2.5 million in March 2010. The mortgage loan was amended in February 2013 to lower the interest rate to LIBOR plus 2.75% and to extend the maturity date to March 2018. In February 2013, the unamortized balance of the mortgage loan was $33.4 million before we increased the mortgage loan by $2.1 million to bring the total amount financed to $35.5 million.