Pennsylvania | 1-6300 | 23-6216339 | ||
(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (IRS Employer Identification No.) |
The Bellevue, 200 S. Broad Street, Philadelphia, Pennsylvania | 19102 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST | ||||
Date: August 4, 2014 | By: | /s/ Bruce Goldman | ||
Bruce Goldman | ||||
Executive Vice President and General Counsel |
99.1 | Quarterly Supplemental Disclosure dated June 30, 2014. |
Table of Contents | |
Introduction | |
Company Information | |
Market Capitalization and Capital Resources | |
Operating Results | |
Statement of Operations - Proportionate Consolidation Method - Quarters Ended June 30, 2014 and June 30, 2013 | |
Statement of Operations - Proportionate Consolidation Method - Six Months Ended June 30, 2014 and June 30, 2013 | |
Statement of Net Operating Income - Quarters and Six Months Ended June 30, 2014 and June 30, 2013 | |
Computation of Earnings Per Share | |
Funds From Operations and Funds Available For Distribution - Quarters Ended June 30, 2014 and June 30, 2013 | |
Funds From Operations and Funds Available For Distribution - Six Months Ended June 30, 2014 and June 30, 2013 | |
Operating Statistics | |
Leasing Activity Summary | |
Summarized Sales and Rent Per Square Foot and Occupancy Percentages | |
Mall Occupancy Percentage and Sales Per Square Foot | |
Top Twenty Tenants | |
Lease Expirations | |
Property Information | |
Department Store Lease Expirations | |
Balance Sheet | |
Condensed Balance Sheet - Proportionate Consolidation Method | |
Investment in Real Estate | |
Capital Expenditures | |
Debt Analysis | |
Debt Schedule | |
Selected Debt Ratios | |
Definitions | |
Forward Looking Statements |
Research Coverage | ||||||
Company | Analyst | Phone Number | ||||
Bank of America/Merrill Lynch | Craig Schmidt | (646) 855-3640 | ||||
Barclays Capital | Ross Smotrich | (212) 526-2306 | ||||
Citi Investment Research | Michael Bilerman | (212) 816-1383 | ||||
Christy McElroy | (212) 816-6981 | |||||
Discern | David Wiggington | (646) 863-4177 | ||||
Evercore Partners | Ben Yang | (415) 229-8070 | ||||
Green Street Advisors | Daniel J. Busch | (949) 640-8780 | ||||
JP Morgan | Michael W. Mueller | (212) 622-6689 | ||||
Stifel Nicolaus | Nathan Isbee | (443) 224-1346 | ||||
Jennifer Hummert | (443) 224-1288 | |||||
SunTrust Robinson Humphrey | Ki Bin Kim | (212) 303-4124 |
Quarter Ended June 30, | Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||
TRADING INFORMATION | ||||||||||||||||
Common Shares | ||||||||||||||||
High Price per share | $ | 18.83 | $ | 22.54 | $ | 22.54 | $ | 17.90 | ||||||||
Low Price per share | $ | 16.35 | $ | 14.20 | $ | 14.20 | $ | 10.49 | ||||||||
Closing Share Price (at the end of period) | $ | 18.82 | $ | 18.88 | $ | 18.98 | $ | 17.64 | ||||||||
Series A Preferred Shares | ||||||||||||||||
High Price per share | $ | 26.85 | $ | 28.06 | $ | 28.06 | $ | 27.33 | ||||||||
Low Price per share | $ | 25.70 | $ | 25.30 | $ | 24.77 | $ | 24.95 | ||||||||
Closing Share Price (at the end of period) | $ | 26.35 | $ | 26.44 | $ | 25.16 | $ | 26.28 | ||||||||
Series B Preferred Shares | ||||||||||||||||
High Price per share | $ | 25.88 | $ | 26.86 | $ | 26.86 | $ | 25.54 | ||||||||
Low Price per share | $ | 24.91 | $ | 24.61 | $ | 23.05 | $ | 24.51 | ||||||||
Closing Share Price (at the end of period) | $ | 25.37 | $ | 25.70 | $ | 23.73 | $ | 25.27 | ||||||||
MARKET CAPITALIZATION | ||||||||||||||||
EQUITY CAPITALIZATION | ||||||||||||||||
Common Shares Outstanding | 68,749 | 68,147 | 68,293 | 56,331 | ||||||||||||
OP Units Outstanding | 2,129 | 2,136 | 2,129 | 2,301 | ||||||||||||
Total Common Shares and OP Units Outstanding | 70,878 | 70,283 | 70,422 | 58,632 | ||||||||||||
Equity Market Capitalization—Common Shares and OP Units | $ | 1,333,926 | $ | 1,326,938 | $ | 1,336,614 | $ | 1,034,273 | ||||||||
Series A Preferred Shares, Nominal Value | 115,000 | 115,000 | 115,000 | 115,000 | ||||||||||||
Series B Preferred Shares, Nominal Value | 86,250 | 86,250 | 86,250 | 86,250 | ||||||||||||
Total Equity Market Capitalization | $ | 1,535,176 | $ | 1,528,188 | $ | 1,537,864 | $ | 1,235,523 | ||||||||
DEBT CAPITALIZATION | ||||||||||||||||
Secured Debt Balance (1) | $ | 1,691,538 | $ | 1,819,258 | $ | 1,701,101 | $ | 2,101,769 | ||||||||
Unsecured Debt Balance (2) (3) | 130,000 | 35,000 | 130,000 | — | ||||||||||||
Debt Capitalization | 1,821,538 | 1,854,258 | 1,831,101 | 2,101,769 | ||||||||||||
TOTAL MARKET CAPITALIZATION | $ | 3,356,714 | $ | 3,382,446 | $ | 3,368,965 | $ | 3,337,292 | ||||||||
Equity Capitalization/Total Market Capitalization | 45.7 | % | 45.2 | % | 45.6 | % | 37.0 | % | ||||||||
Debt Capitalization/Total Market Capitalization | 54.3 | % | 54.8 | % | 54.4 | % | 63.0 | % | ||||||||
Unsecured Debt Balance/Total Debt | 7.1 | % | 1.9 | % | 7.1 | % | — | % | ||||||||
DISTRIBUTIONS PER COMMON SHARE | ||||||||||||||||
Non-Dividend Distributions | (4) | $ | 0.18 | $ | 0.74 | $ | 0.63 | |||||||||
Distributions per common share | $ | 0.20 | $ | 0.18 | $ | 0.74 | $ | 0.63 | ||||||||
Annualized Dividend Yield (5) | 4.3 | % | 3.8 | % | 3.9 | % | 3.6 | % | ||||||||
CAPITAL RESOURCES | ||||||||||||||||
Cash and Cash Equivalents | $ | 36,630 | $ | 23,589 | $ | 41,867 | $ | 38,873 | ||||||||
Revolving Facility | 400,000 | 400,000 | 400,000 | 250,000 | ||||||||||||
Amount Outstanding | — | (35,000 | ) | (130,000 | ) | — | ||||||||||
Letter of Credit | (7,135 | ) | — | — | — | |||||||||||
Available Revolving Facility (6) | 392,865 | 365,000 | 270,000 | 250,000 | ||||||||||||
Term Loans | 250,000 | — | — | 182,000 | ||||||||||||
Amount Borrowed | (130,000 | ) | — | — | (182,000 | ) | ||||||||||
Available Term Loans | 120,000 | — | — | — | ||||||||||||
TOTAL | $ | 549,495 | $ | 388,589 | $ | 311,867 | $ | 288,873 | ||||||||
Shelf Registration | $ | 568,750 | $ | 568,750 | $ | 568,750 | $ | 798,750 |
(1) | The secured debt balance includes $182,000 in Term Loans outstanding as of December 31, 2012. |
(2) | The unsecured debt balance includes a Revolving Facility balance of $130,000 as of December 31, 2013 and $35,000 as of June 30, 2013. |
(3) | The unsecured debt balance includes a Term Loan balance of $130,000 as of June 30, 2014. |
(4) | Tax status of 2014 dividend payments will be available in January 2015. |
(5) | Based on closing share price at the end of the period. |
(6) | The available Credit Facility borrowings are subject to covenants that may restrict amounts that can be borrowed. On April 17, 2013, the Company entered into the 2013 Revolving Facility. |
Quarter Ended June 30, 2014 | Quarter Ended June 30, 2013 | |||||||||||||||||||||||||||
Continuing Operations | Continuing Operations | |||||||||||||||||||||||||||
GAAP | PREIT’s share of unconsolidated partnerships (1) | Total | GAAP | PREIT’s share of unconsolidated partnerships (1) | Discontinued operations | Total | ||||||||||||||||||||||
REVENUE: | ||||||||||||||||||||||||||||
Base rent | $ | 71,646 | $ | 6,912 | $ | 78,558 | $ | 69,207 | $ | 6,736 | $ | 2,228 | $ | 78,171 | ||||||||||||||
Expense reimbursements | 30,879 | 2,835 | 33,714 | 30,931 | 2,625 | 422 | 33,978 | |||||||||||||||||||||
Percentage rent | 324 | 15 | 339 | 584 | 31 | — | 615 | |||||||||||||||||||||
Lease termination revenue | 154 | — | 154 | 91 | 16 | 35 | 142 | |||||||||||||||||||||
Other real estate revenue | 3,142 | 325 | 3,467 | 2,735 | 277 | 60 | 3,072 | |||||||||||||||||||||
Total real estate revenue | 106,145 | 10,087 | 116,232 | 103,548 | 9,685 | 2,745 | 115,978 | |||||||||||||||||||||
Other income | 680 | — | 680 | 1,395 | — | — | 1,395 | |||||||||||||||||||||
Total revenue | 106,825 | 10,087 | 116,912 | 104,943 | 9,685 | 2,745 | 117,373 | |||||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
CAM and real estate taxes | (35,228 | ) | (2,074 | ) | (37,302 | ) | (34,642 | ) | (2,121 | ) | (666 | ) | (37,429 | ) | ||||||||||||||
Utilities | (5,841 | ) | (177 | ) | (6,018 | ) | (5,068 | ) | (172 | ) | (77 | ) | (5,317 | ) | ||||||||||||||
Other operating expenses | (3,295 | ) | (610 | ) | (3,905 | ) | (3,909 | ) | (534 | ) | (52 | ) | (4,495 | ) | ||||||||||||||
Total operating expenses | (44,364 | ) | (2,861 | ) | (47,225 | ) | (43,619 | ) | (2,827 | ) | (795 | ) | (47,241 | ) | ||||||||||||||
Depreciation and amortization | (37,135 | ) | (1,724 | ) | (38,859 | ) | (35,088 | ) | (1,810 | ) | (363 | ) | (37,261 | ) | ||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||
General and administrative expenses | (8,774 | ) | — | (8,774 | ) | (9,606 | ) | — | — | (9,606 | ) | |||||||||||||||||
Impairment of assets | (16,098 | ) | — | (16,098 | ) | — | — | — | — | |||||||||||||||||||
Provision for employee separation expense | (4,877 | ) | — | (4,877 | ) | (1,035 | ) | — | — | (1,035 | ) | |||||||||||||||||
Acquisition costs and other expenses | (960 | ) | — | (960 | ) | (198 | ) | — | — | (198 | ) | |||||||||||||||||
Total other expenses | (30,709 | ) | — | (30,709 | ) | (10,839 | ) | — | — | (10,839 | ) | |||||||||||||||||
Interest expense, net (2) | (21,550 | ) | (2,718 | ) | (24,268 | ) | (27,689 | ) | (2,765 | ) | (587 | ) | (31,041 | ) | ||||||||||||||
Total expenses | (133,758 | ) | (7,303 | ) | (141,061 | ) | (117,235 | ) | (7,402 | ) | (1,745 | ) | (126,382 | ) | ||||||||||||||
Loss before equity in income of partnerships, gain on sale of interest in real estate, discontinued operations and gains on sales discontinued operations | (26,933 | ) | 2,784 | (24,149 | ) | (12,292 | ) | 2,283 | 1,000 | (9,009 | ) | |||||||||||||||||
Equity in income of partnerships | 2,784 | (2,784 | ) | — | 2,283 | (2,283 | ) | — | — | |||||||||||||||||||
Gain on sale of interest in real estate | 99 | — | 99 | — | — | — | — | |||||||||||||||||||||
Loss from continuing operations | (24,050 | ) | — | (24,050 | ) | (10,009 | ) | — | 1,000 | (9,009 | ) | |||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||||||||
Operating results from discontinued operations | — | — | — | 1,000 | — | (1,000 | ) | — | ||||||||||||||||||||
Income from discontinued operations | — | — | — | 1,000 | — | (1,000 | ) | — | ||||||||||||||||||||
Net loss | (24,050 | ) | — | (24,050 | ) | (9,009 | ) | — | — | (9,009 | ) | |||||||||||||||||
Less: net loss attributed to noncontrolling interest | 725 | — | 725 | 314 | — | — | 314 | |||||||||||||||||||||
Net loss attributable to PREIT | $ | (23,325 | ) | $ | — | $ | (23,325 | ) | $ | (8,695 | ) | $ | — | $ | — | $ | (8,695 | ) | ||||||||||
Less: preferred share dividends | (3,962 | ) | — | (3,962 | ) | (3,962 | ) | — | — | (3,962 | ) | |||||||||||||||||
Net loss attributable to PREIT common shareholders | $ | (27,287 | ) | $ | — | $ | (27,287 | ) | $ | (12,657 | ) | $ | — | $ | — | $ | (12,657 | ) |
(1) | PREIT’s proportionate share of partnership operations is “grossed up” to reflect the Company’s share of the total revenue and expenses of the underlying properties. |
(2) | Net of capitalized interest expense of $191 and $213 for the quarters ended June 30, 2014 and 2013, respectively. |
Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||
Continuing Operations | Continuing Operations | |||||||||||||||||||||||||||
GAAP | PREIT’s share of unconsolidated partnerships (1) | Total | GAAP | PREIT’s share of unconsolidated partnerships (1) | Discontinued operations | Total | ||||||||||||||||||||||
REVENUE: | ||||||||||||||||||||||||||||
Base rent | $ | 142,988 | $ | 13,786 | $ | 156,774 | $ | 137,709 | $ | 13,524 | $ | 5,477 | $ | 156,710 | ||||||||||||||
Expense reimbursements | 65,230 | 6,125 | 71,355 | 61,792 | 5,518 | 1,153 | 68,463 | |||||||||||||||||||||
Percentage rent | 914 | 67 | 981 | 1,566 | 72 | 26 | 1,664 | |||||||||||||||||||||
Lease termination revenue | 254 | 12 | 266 | 231 | 16 | 48 | 295 | |||||||||||||||||||||
Other real estate revenue | 5,368 | 606 | 5,974 | 5,428 | 574 | 184 | 6,186 | |||||||||||||||||||||
Total real estate revenue | 214,754 | 20,596 | 235,350 | 206,726 | 19,704 | 6,888 | 233,318 | |||||||||||||||||||||
Other income | 1,458 | — | 1,458 | 2,283 | — | — | 2,283 | |||||||||||||||||||||
Total revenue | 216,212 | 20,596 | 236,808 | 209,009 | 19,704 | 6,888 | 235,601 | |||||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
CAM and real estate taxes | (74,631 | ) | (4,799 | ) | (79,430 | ) | (69,541 | ) | (4,349 | ) | (2,296 | ) | (76,186 | ) | ||||||||||||||
Utilities | (14,051 | ) | (430 | ) | (14,481 | ) | (10,126 | ) | (338 | ) | (160 | ) | (10,624 | ) | ||||||||||||||
Other operating expenses | (7,399 | ) | (1,167 | ) | (8,566 | ) | (7,647 | ) | (1,111 | ) | (425 | ) | (9,183 | ) | ||||||||||||||
Total operating expenses | (96,081 | ) | (6,396 | ) | (102,477 | ) | (87,314 | ) | (5,798 | ) | (2,881 | ) | (95,993 | ) | ||||||||||||||
Depreciation and amortization | (73,370 | ) | (3,566 | ) | (76,936 | ) | (68,705 | ) | (3,639 | ) | (727 | ) | (73,071 | ) | ||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||
General and administrative expenses | (17,851 | ) | — | (17,851 | ) | (18,462 | ) | — | — | (18,462 | ) | |||||||||||||||||
Impairment of assets | (17,398 | ) | — | (17,398 | ) | — | — | — | — | |||||||||||||||||||
Provision for employee separation expense | (4,877 | ) | — | (4,877 | ) | (2,314 | ) | — | — | (2,314 | ) | |||||||||||||||||
Acquisition costs and other expenses | (2,606 | ) | — | (2,606 | ) | (400 | ) | — | — | (400 | ) | |||||||||||||||||
Total other expenses | (42,732 | ) | — | (42,732 | ) | (21,176 | ) | — | — | (21,176 | ) | |||||||||||||||||
Interest expense, net (2) | (41,720 | ) | (5,448 | ) | (47,168 | ) | (55,027 | ) | (5,531 | ) | (1,259 | ) | (61,817 | ) | ||||||||||||||
Total expenses | (253,903 | ) | (15,410 | ) | (269,313 | ) | (232,222 | ) | (14,968 | ) | (4,867 | ) | (252,057 | ) | ||||||||||||||
Loss before equity in income of partnerships, gain on sale of interest in real estate, discontinued operations and gains on sales discontinued operations | (37,691 | ) | 5,186 | (32,505 | ) | (23,213 | ) | 4,736 | 2,021 | (16,456 | ) | |||||||||||||||||
Equity in income of partnerships | 5,186 | (5,186 | ) | — | 4,736 | (4,736 | ) | — | — | |||||||||||||||||||
Gain on sale of interest in real estate | 99 | — | 99 | — | — | — | — | |||||||||||||||||||||
Loss from continuing operations | (32,406 | ) | — | (32,406 | ) | (18,477 | ) | — | 2,021 | (16,456 | ) | |||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||||||||
Operating results from discontinued operations | — | — | — | 2,021 | — | (2,021 | ) | — | ||||||||||||||||||||
Gains on sales of discontinued operations | — | — | — | 33,254 | — | — | 33,254 | |||||||||||||||||||||
Income from discontinued operations | — | — | — | 35,275 | — | (2,021 | ) | 33,254 | ||||||||||||||||||||
Net (loss) income | (32,406 | ) | — | (32,406 | ) | 16,798 | — | — | 16,798 | |||||||||||||||||||
Less: net loss (income) attributed to noncontrolling interest | 977 | — | 977 | (691 | ) | — | — | (691 | ) | |||||||||||||||||||
Net (loss) income attributable to PREIT | $ | (31,429 | ) | $ | — | $ | (31,429 | ) | $ | 16,107 | $ | — | $ | — | $ | 16,107 | ||||||||||||
Less: preferred share dividends | (7,924 | ) | — | (7,924 | ) | (7,924 | ) | — | — | (7,924 | ) | |||||||||||||||||
Net (loss) income attributable to PREIT common shareholders | $ | (39,353 | ) | $ | — | $ | (39,353 | ) | $ | 8,183 | $ | — | $ | — | $ | 8,183 |
(1) | PREIT’s proportionate share of partnership operations is “grossed up” to reflect the Company’s share of the total revenue and expenses of the underlying properties. |
(2) | Net of capitalized interest expense of $294 and $278 for the six months ended June 30, 2014 and 2013, respectively. |
Quarter Ended June 30, 2014 | Quarter Ended June 30, 2013 | |||||||||||||||||||||||||||||||
SAME STORE RETAIL/NEW/OTHER | Same | New | Other | Total | Same | New | Other | Total | ||||||||||||||||||||||||
Real estate revenue: | ||||||||||||||||||||||||||||||||
Base rent | $ | 75,882 | $ | 1,714 | $ | 962 | $ | 78,558 | $ | 73,514 | $ | 1,160 | $ | 3,497 | $ | 78,171 | ||||||||||||||||
Expense reimbursements | 33,133 | 343 | 238 | 33,714 | 32,840 | 188 | 950 | 33,978 | ||||||||||||||||||||||||
Percentage rent | 339 | — | — | 339 | 614 | — | 1 | 615 | ||||||||||||||||||||||||
Lease termination revenue | 154 | — | — | 154 | 108 | — | 34 | 142 | ||||||||||||||||||||||||
Other real estate revenue | 3,198 | 2 | 267 | 3,467 | 2,770 | — | 302 | 3,072 | ||||||||||||||||||||||||
TOTAL REAL ESTATE REVENUE | 112,706 | 2,059 | 1,467 | 116,232 | 109,846 | 1,348 | 4,784 | 115,978 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
CAM and real estate taxes | (35,958 | ) | (573 | ) | (771 | ) | (37,302 | ) | (35,364 | ) | (242 | ) | (1,823 | ) | (37,429 | ) | ||||||||||||||||
Utilities | (5,842 | ) | (162 | ) | (14 | ) | (6,018 | ) | (5,088 | ) | (113 | ) | (116 | ) | (5,317 | ) | ||||||||||||||||
Other operating expenses | (3,733 | ) | (41 | ) | (131 | ) | (3,905 | ) | (4,230 | ) | (35 | ) | (230 | ) | (4,495 | ) | ||||||||||||||||
TOTAL OPERATING EXPENSES | (45,533 | ) | (776 | ) | (916 | ) | (47,225 | ) | (44,682 | ) | (390 | ) | (2,169 | ) | (47,241 | ) | ||||||||||||||||
NET OPERATING INCOME | $ | 67,173 | $ | 1,283 | $ | 551 | $ | 69,007 | $ | 65,164 | $ | 958 | $ | 2,615 | $ | 68,737 | ||||||||||||||||
2014 | % change 2013 to 2014 | 2013 | ||||||||||||||||||||||||||||||
Same Store NOI variance | ||||||||||||||||||||||||||||||||
Same Store NOI (2) | $ | 67,173 | 3.1% | $ | 65,164 | |||||||||||||||||||||||||||
Same Store NOI excluding lease terminations | $ | 67,019 | 3.0% | $ | 65,056 |
Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||
SAME STORE RETAIL/NEW/OTHER | Same | New | Other | Total | Same | New | Other | Total | ||||||||||||||||||||||||
Real estate revenue: | ||||||||||||||||||||||||||||||||
Base rent | $ | 151,377 | $ | 3,389 | $ | 2,008 | $ | 156,774 | $ | 147,443 | $ | 1,160 | $ | 8,107 | $ | 156,710 | ||||||||||||||||
Expense reimbursements | 69,992 | 841 | 522 | 71,355 | 66,106 | 188 | 2,169 | 68,463 | ||||||||||||||||||||||||
Percentage rent | 981 | — | — | 981 | 1,639 | — | 25 | 1,664 | ||||||||||||||||||||||||
Lease termination revenue | 266 | — | — | 266 | 248 | — | 47 | 295 | ||||||||||||||||||||||||
Other real estate revenue | 5,475 | 2 | 497 | 5,974 | 5,519 | — | 667 | 6,186 | ||||||||||||||||||||||||
TOTAL REAL ESTATE REVENUE | 228,091 | 4,232 | 3,027 | 235,350 | 220,955 | 1,348 | 11,015 | 233,318 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
CAM and real estate taxes | (76,768 | ) | (1,036 | ) | (1,626 | ) | (79,430 | ) | (71,451 | ) | (242 | ) | (4,493 | ) | (76,186 | ) | ||||||||||||||||
Utilities | (13,968 | ) | (493 | ) | (20 | ) | (14,481 | ) | (10,272 | ) | (113 | ) | (239 | ) | (10,624 | ) | ||||||||||||||||
Other operating expenses | (8,294 | ) | (60 | ) | (212 | ) | (8,566 | ) | (8,397 | ) | (35 | ) | (751 | ) | (9,183 | ) | ||||||||||||||||
TOTAL OPERATING EXPENSES | (99,030 | ) | (1,589 | ) | (1,858 | ) | (102,477 | ) | (90,120 | ) | (390 | ) | (5,483 | ) | (95,993 | ) | ||||||||||||||||
NET OPERATING INCOME | $ | 129,061 | $ | 2,643 | $ | 1,169 | $ | 132,873 | $ | 130,835 | $ | 958 | $ | 5,532 | $ | 137,325 | ||||||||||||||||
2014 | % change 2013 to 2014 | 2013 | ||||||||||||||||||||||||||||||
Same Store NOI variance | ||||||||||||||||||||||||||||||||
Same Store NOI (2) | $ | 129,061 | (1.4)% | $ | 130,835 | |||||||||||||||||||||||||||
Same Store NOI excluding lease terminations | $ | 128,795 | (1.4)% | $ | 130,587 |
(1) | PREIT's proportionate share of partnership operations is "grossed up" to reflect the Company's share of the total revenue and expenses of the underlying properties. |
(2) | Same Store NOI definition can be found on page 25. |
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Loss from continuing operations | $ | (24,050 | ) | $ | (10,009 | ) | $ | (32,406 | ) | $ | (18,477 | ) | ||||
Noncontrolling interest | 725 | 348 | 977 | 677 | ||||||||||||
Dividends on preferred shares | (3,962 | ) | (3,962 | ) | (7,924 | ) | (7,924 | ) | ||||||||
Dividends on unvested restricted shares | (92 | ) | (103 | ) | (205 | ) | (211 | ) | ||||||||
Loss from continuing operations used to calculate loss per share - basic and diluted | $ | (27,379 | ) | $ | (13,726 | ) | $ | (39,558 | ) | $ | (25,935 | ) | ||||
Income from discontinued operations | $ | — | $ | 1,000 | $ | — | $ | 35,275 | ||||||||
Noncontrolling interest | — | (34 | ) | — | (1,368 | ) | ||||||||||
Income from discontinued operations used to calculate earnings per share - basic and diluted | $ | — | $ | 966 | $ | — | $ | 33,907 | ||||||||
Basic and diluted (loss) earnings per share | ||||||||||||||||
Loss from continuing operations | $ | (0.40 | ) | $ | (0.22 | ) | $ | (0.58 | ) | $ | (0.43 | ) | ||||
Income from discontinued operations | — | 0.02 | — | 0.56 | ||||||||||||
$ | (0.40 | ) | $ | (0.20 | ) | $ | (0.58 | ) | $ | 0.13 | ||||||
Weighted average common shares outstanding | 68,737 | 64,123 | 68,619 | 60,269 | ||||||||||||
Weighted average unvested restricted shares | (501 | ) | (583 | ) | (528 | ) | (608 | ) | ||||||||
Weighted average shares outstanding - basic | 68,236 | 63,540 | 68,091 | 59,661 | ||||||||||||
Weighted average effect of common share equivalents (1) | — | — | — | — | ||||||||||||
Total weighted average shares outstanding - diluted | 68,236 | 63,540 | 68,091 | 59,661 |
(1) | The Company had net losses from continuing operations for all periods presented. Therefore, the effect of common share equivalents of 309 and 727 for the quarters ended June 30, 2014 and 2013, respectively, and 326 and 780 for the six months ended June 30, 2014 and 2013, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive. |
Quarter Ended June 30, 2014 | Quarter Ended June 30, 2013 | |||||||||||||||||||||||||||
Continuing Operations | Continuing Operations | |||||||||||||||||||||||||||
Consolidated | PREIT’s share of unconsolidated partnerships | Total | Consolidated | PREIT’s share of unconsolidated partnerships | Discontinued operations | Total | ||||||||||||||||||||||
FUNDS FROM OPERATIONS (FFO) | ||||||||||||||||||||||||||||
Real estate revenue | $ | 106,145 | $ | 10,087 | $ | 116,232 | $ | 103,548 | $ | 9,685 | $ | 2,745 | $ | 115,978 | ||||||||||||||
Operating expenses | (44,364 | ) | (2,861 | ) | (47,225 | ) | (43,619 | ) | (2,827 | ) | (795 | ) | (47,241 | ) | ||||||||||||||
NET OPERATING INCOME | 61,781 | 7,226 | 69,007 | 59,929 | 6,858 | 1,950 | 68,737 | |||||||||||||||||||||
General and administrative expenses | (8,774 | ) | — | (8,774 | ) | (9,606 | ) | — | — | (9,606 | ) | |||||||||||||||||
Provision for employee separation expense | (4,877 | ) | — | (4,877 | ) | (1,035 | ) | — | — | (1,035 | ) | |||||||||||||||||
Other income | 680 | — | 680 | 1,395 | — | — | 1,395 | |||||||||||||||||||||
Acquisition costs and other expenses | (960 | ) | — | (960 | ) | (198 | ) | — | — | (198 | ) | |||||||||||||||||
Interest expense, net | (21,550 | ) | (2,718 | ) | (24,268 | ) | (27,689 | ) | (2,765 | ) | (587 | ) | (31,041 | ) | ||||||||||||||
Depreciation on non real estate assets | (369 | ) | — | (369 | ) | (323 | ) | — | — | (323 | ) | |||||||||||||||||
Dividends on preferred shares | (3,962 | ) | — | (3,962 | ) | (3,962 | ) | — | — | (3,962 | ) | |||||||||||||||||
FFO | 21,969 | 4,508 | 26,477 | 18,511 | 4,093 | 1,363 | 23,967 | |||||||||||||||||||||
Depreciation on real estate assets | (36,766 | ) | (1,724 | ) | (38,490 | ) | (34,765 | ) | (1,810 | ) | (363 | ) | (36,938 | ) | ||||||||||||||
Equity in income of partnerships | 2,784 | (2,784 | ) | — | 2,283 | (2,283 | ) | — | — | |||||||||||||||||||
Impairment of assets | (16,098 | ) | — | (16,098 | ) | — | — | — | — | |||||||||||||||||||
Gain on sale of interest in real estate | 99 | — | 99 | — | — | — | — | |||||||||||||||||||||
Operating results from discontinued operations | — | — | — | 1,000 | — | (1,000 | ) | — | ||||||||||||||||||||
Preferred share dividends | 3,962 | — | 3,962 | 3,962 | — | — | 3,962 | |||||||||||||||||||||
Net loss | $ | (24,050 | ) | $ | — | $ | (24,050 | ) | $ | (9,009 | ) | $ | — | $ | — | $ | (9,009 | ) | ||||||||||
FFO | $ | 21,969 | $ | 4,508 | $ | 26,477 | $ | 18,511 | $ | 4,093 | $ | 1,363 | $ | 23,967 | ||||||||||||||
Acquisition costs | 554 | — | 554 | — | — | — | — | |||||||||||||||||||||
Provision for employee separation expenses | 4,877 | — | 4,877 | 1,035 | — | — | 1,035 | |||||||||||||||||||||
Loss on hedge ineffectiveness | 1,238 | — | 1,238 | 3,146 | — | — | 3,146 | |||||||||||||||||||||
Accelerated amortization of deferred financing costs | — | — | — | 112 | — | — | 112 | |||||||||||||||||||||
FFO AS ADJUSTED | $ | 28,638 | $ | 4,508 | $ | 33,146 | $ | 22,804 | $ | 4,093 | $ | 1,363 | $ | 28,260 | ||||||||||||||
FUNDS AVAILABLE FOR DISTRIBUTION (FAD) | ||||||||||||||||||||||||||||
FFO AS ADJUSTED | $ | 28,638 | $ | 4,508 | $ | 33,146 | $ | 22,804 | $ | 4,093 | $ | 1,363 | $ | 28,260 | ||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Straight line rent | (305 | ) | 3 | (302 | ) | (407 | ) | (29 | ) | 17 | (419 | ) | ||||||||||||||||
Recurring capital expenditures | (2,819 | ) | (19 | ) | (2,838 | ) | (2,005 | ) | (180 | ) | (85 | ) | (2,270 | ) | ||||||||||||||
Tenant allowances | (8,689 | ) | (79 | ) | (8,768 | ) | (6,986 | ) | (80 | ) | (15 | ) | (7,081 | ) | ||||||||||||||
Capitalized leasing costs | (1,409 | ) | — | (1,409 | ) | (1,185 | ) | — | — | (1,185 | ) | |||||||||||||||||
Amortization of above- and below-market lease intangibles | (353 | ) | (22 | ) | (375 | ) | (313 | ) | (23 | ) | (5 | ) | (341 | ) | ||||||||||||||
FAD | $ | 15,063 | $ | 4,391 | $ | 19,454 | $ | 11,908 | $ | 3,781 | $ | 1,275 | $ | 16,964 | ||||||||||||||
Weighted average number of shares outstanding | 68,236 | 63,540 | ||||||||||||||||||||||||||
Weighted average effect of full conversion of OP Units | 2,129 | 2,228 | ||||||||||||||||||||||||||
Effect of common share equivalents | 309 | 727 | ||||||||||||||||||||||||||
Total weighted average shares outstanding, including OP Units | 70,674 | 66,495 | ||||||||||||||||||||||||||
FFO PER DILUTED SHARE AND OP UNIT | $ | 0.37 | $ | 0.36 | ||||||||||||||||||||||||
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED | $ | 0.47 | $ | 0.42 | ||||||||||||||||||||||||
FAD PER DILUTED SHARE AND OP UNIT | $ | 0.28 | $ | 0.26 | ||||||||||||||||||||||||
DIVIDEND PER COMMON SHARE | $ | 0.20 | $ | 0.18 | ||||||||||||||||||||||||
PAYOUT RATIOS | ||||||||||||||||||||||||||||
Payout ratio of FFO | 41.8 | % | (1) | 39.9 | % | (2) | ||||||||||||||||||||||
Payout ratio of FFO as adjusted | 38.8 | % | (1) | 34.6 | % | (2) | ||||||||||||||||||||||
Payout ratio of FAD | 63.9 | % | (1) | 65.0 | % | (2) |
(1) | Twelve months ended June 30, 2014. |
(2) | Twelve months ended June 30, 2013. |
Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||
Continuing Operations | Continuing Operations | |||||||||||||||||||||||||||
Consolidated | PREIT’s share of unconsolidated partnerships | Total | Consolidated | PREIT’s share of unconsolidated partnerships | Discontinued operations | Total | ||||||||||||||||||||||
FUNDS FROM OPERATIONS (FFO) | ||||||||||||||||||||||||||||
Real estate revenue | $ | 214,754 | $ | 20,596 | $ | 235,350 | $ | 206,726 | $ | 19,704 | $ | 6,888 | $ | 233,318 | ||||||||||||||
Operating expenses | (96,081 | ) | (6,396 | ) | (102,477 | ) | (87,314 | ) | (5,798 | ) | (2,881 | ) | (95,993 | ) | ||||||||||||||
NET OPERATING INCOME | 118,673 | 14,200 | 132,873 | 119,412 | 13,906 | 4,007 | 137,325 | |||||||||||||||||||||
General and administrative expenses | (17,851 | ) | — | (17,851 | ) | (18,462 | ) | — | — | (18,462 | ) | |||||||||||||||||
Provision for employee separation expense | (4,877 | ) | — | (4,877 | ) | (2,314 | ) | — | — | (2,314 | ) | |||||||||||||||||
Other income | 1,458 | — | 1,458 | 2,283 | — | — | 2,283 | |||||||||||||||||||||
Project costs and other expenses | (2,606 | ) | — | (2,606 | ) | (400 | ) | — | — | (400 | ) | |||||||||||||||||
Interest expense, net | (41,720 | ) | (5,448 | ) | (47,168 | ) | (55,027 | ) | (5,531 | ) | (1,259 | ) | (61,817 | ) | ||||||||||||||
Depreciation on non real estate assets | (813 | ) | — | (813 | ) | (548 | ) | — | — | (548 | ) | |||||||||||||||||
Dividends on preferred shares | (7,924 | ) | — | (7,924 | ) | (7,924 | ) | — | — | (7,924 | ) | |||||||||||||||||
FFO | 44,340 | 8,752 | 53,092 | 37,020 | 8,375 | 2,748 | 48,143 | |||||||||||||||||||||
Depreciation on real estate assets | (72,557 | ) | (3,566 | ) | (76,123 | ) | (68,157 | ) | (3,639 | ) | (727 | ) | (72,523 | ) | ||||||||||||||
Equity in income of partnerships | 5,186 | (5,186 | ) | — | 4,736 | (4,736 | ) | — | — | |||||||||||||||||||
Impairment of assets | (17,398 | ) | — | (17,398 | ) | — | — | — | — | |||||||||||||||||||
Gain on sale of interest in real estate | 99 | — | 99 | — | — | — | — | |||||||||||||||||||||
Operating results from discontinued operations | — | — | — | 2,021 | — | (2,021 | ) | — | ||||||||||||||||||||
Gains on sales of discontinued operations | — | — | — | 33,254 | — | — | 33,254 | |||||||||||||||||||||
Dividends on preferred shares | 7,924 | — | 7,924 | 7,924 | — | — | 7,924 | |||||||||||||||||||||
Net (loss) income | $ | (32,406 | ) | $ | — | $ | (32,406 | ) | $ | 16,798 | $ | — | $ | — | $ | 16,798 | ||||||||||||
FFO | $ | 44,340 | $ | 8,752 | $ | 53,092 | $ | 37,020 | $ | 8,375 | $ | 2,748 | $ | 48,143 | ||||||||||||||
Acquisition costs | 1,941 | — | 1,941 | — | — | — | — | |||||||||||||||||||||
Provision for employee separation expenses | 4,877 | — | 4,877 | 2,314 | — | — | 2,314 | |||||||||||||||||||||
Loss on hedge ineffectiveness | 1,238 | — | 1,238 | 2,682 | — | — | 2,682 | |||||||||||||||||||||
Accelerated amortization of deferred financing costs | — | — | — | 1,026 | — | — | 1,026 | |||||||||||||||||||||
FFO AS ADJUSTED | $ | 52,396 | $ | 8,752 | $ | 61,148 | $ | 43,042 | $ | 8,375 | $ | 2,748 | $ | 54,165 | ||||||||||||||
FUNDS AVAILABLE FOR DISTRIBUTION (FAD) | ||||||||||||||||||||||||||||
FFO AS ADJUSTED | $ | 52,396 | $ | 8,752 | $ | 61,148 | $ | 43,042 | $ | 8,375 | $ | 2,748 | $ | 54,165 | ||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Straight line rent | (823 | ) | (40 | ) | (863 | ) | (796 | ) | (72 | ) | 39 | (829 | ) | |||||||||||||||
Recurring capital expenditures | (3,312 | ) | (29 | ) | (3,341 | ) | (2,370 | ) | (203 | ) | (141 | ) | (2,714 | ) | ||||||||||||||
Tenant allowances | (11,158 | ) | (118 | ) | (11,276 | ) | (8,739 | ) | (180 | ) | (9 | ) | (8,928 | ) | ||||||||||||||
Capitalized leasing costs | (2,829 | ) | — | (2,829 | ) | (2,722 | ) | — | — | (2,722 | ) | |||||||||||||||||
Amortization of above- and below-market lease intangibles | (691 | ) | (43 | ) | (734 | ) | (370 | ) | (51 | ) | (9 | ) | (430 | ) | ||||||||||||||
FAD | $ | 33,583 | $ | 8,522 | $ | 42,105 | $ | 28,045 | $ | 7,869 | $ | 2,628 | $ | 38,542 | ||||||||||||||
Weighted average number of shares outstanding | 68,091 | 59,661 | ||||||||||||||||||||||||||
Weighted average effect of full conversion of OP Units | 2,129 | 2,256 | ||||||||||||||||||||||||||
Effect of common share equivalents | 326 | 780 | ||||||||||||||||||||||||||
Total weighted average shares outstanding, including OP Units | 70,546 | 62,697 | ||||||||||||||||||||||||||
FFO PER DILUTED SHARE AND OP UNIT | $ | 0.75 | $ | 0.77 | ||||||||||||||||||||||||
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED | $ | 0.87 | $ | 0.86 | ||||||||||||||||||||||||
FAD PER DILUTED SHARE AND OP UNIT | $ | 0.60 | $ | 0.61 | ||||||||||||||||||||||||
DIVIDEND PER COMMON SHARE | $ | 0.40 | $ | 0.36 | ||||||||||||||||||||||||
PAYOUT RATIOS | ||||||||||||||||||||||||||||
Payout ratio of FFO | 43.6 | % | (1) | 42.2 | % | (2) | ||||||||||||||||||||||
Payout ratio of FFO as adjusted | 40.4 | % | (1) | 36.0 | % | (2) | ||||||||||||||||||||||
Payout ratio of FAD | 67.2 | % | (1) | 69.4 | % | (2) |
(1) | Twelve months ended June 30, 2014. |
(2) | Twelve months ended June 30, 2013. |
Avg Gross Rent psf | Change in Gross Rent psf | Annualized Tenant Improvements psf (2) | |||||||||||||||||||||||
Number | GLA | Previous | New(1) | Dollar | % | ||||||||||||||||||||
New Leases - non anchor tenants 10k sf and under: (3) | |||||||||||||||||||||||||
1st Quarter | 39 | 81,690 | N/A | $ | 48.07 | $ | 48.07 | N/A | $ | 5.20 | |||||||||||||||
2nd Quarter | 52 | 152,596 | N/A | 41.71 | 41.71 | N/A | 7.25 | ||||||||||||||||||
Total/Average | 91 | 234,286 | N/A | $ | 43.93 | $ | 43.93 | N/A | $ | 6.54 | |||||||||||||||
New Leases - non anchor tenants greater than 10k sf: (3) | |||||||||||||||||||||||||
1st Quarter | 2 | 25,971 | N/A | $ | 12.50 | $ | 12.50 | N/A | $ | 5.61 | |||||||||||||||
2nd Quarter | 11 | 179,206 | N/A | 25.31 | 25.31 | N/A | 5.90 | ||||||||||||||||||
Total/Average | 13 | 205,177 | N/A | $ | 23.69 | $ | 23.69 | N/A | $ | 5.86 | |||||||||||||||
Renewal - non anchor tenants 10k sf and under: (4) | |||||||||||||||||||||||||
1st Quarter | 48 | 145,510 | $ | 36.02 | $ | 38.68 | $ | 2.66 | 7.4 | % | $ | — | |||||||||||||
2nd Quarter | 105 | 286,783 | 33.75 | 35.27 | 1.52 | 4.5 | % | — | |||||||||||||||||
Total/Average | 153 | 432,293 | $ | 34.51 | $ | 36.42 | $ | 1.90 | 5.5 | % | $ | — | |||||||||||||
Renewal - non anchor tenants greater than 10k sf: (4) | |||||||||||||||||||||||||
1st Quarter | 6 | 107,781 | $ | 16.22 | $ | 17.04 | $ | 0.82 | 5.1 | % | $ | — | |||||||||||||
2nd Quarter | 4 | 124,249 | 17.51 | 18.90 | 1.39 | 7.9 | % | — | |||||||||||||||||
Total/Average | 10 | 232,030 | $ | 16.91 | $ | 18.04 | $ | 1.13 | 6.7 | % | $ | — | |||||||||||||
Anchor New: | |||||||||||||||||||||||||
1st Quarter | 1 | 52,055 | N/A | $ | 7.50 | $ | 7.50 | N/A | $ | 4.00 | |||||||||||||||
2nd Quarter | 1 | 98,391 | N/A | 15.34 | 15.34 | N/A | 8.33 | ||||||||||||||||||
Total/Average | 2 | 150,446 | N/A | $ | 12.63 | $ | 12.63 | N/A | $ | 6.83 | |||||||||||||||
Anchor Renewal: | |||||||||||||||||||||||||
1st Quarter | 1 | 101,476 | $ | 2.79 | $ | 2.80 | $ | 0.01 | 0.4 | % | $ | — | |||||||||||||
2nd Quarter | 1 | 77,688 | 2.85 | 2.92 | 0.07 | 2.5 | % | — | |||||||||||||||||
Total/Average | 2 | 179,164 | $ | 2.82 | $ | 2.85 | $ | 0.04 | 1.3 | % | $ | — |
(1) | New rent is the initial amount payable upon rent commencement. In certain cases, a lower rent may be payable until certain conditions in the lease are satisfied. |
(2) | These leasing costs are presented as annualized costs per square foot and are spread uniformly over the initial lease term. |
(3) | This category includes newly constructed and recommissioned space. |
(4) | This category includes expansions and lease extensions. |
June 30, 2014 | June 30, 2013 | Change | ||||||||||||||||||||||||||||||||||||||||||||||
% Rolling 12 Mo. NOI | Avg. Comp Sales | Avg. Gross Rent(1)(2) | Occ. Cost | Occupancy | % Rolling 12 Mo. NOI | Avg. Comp Sales | Avg. Gross Rent(1)(2) | Occ. Cost | Occupancy | Avg. Comp Sales | Avg. Gross Rent(1)(2) | Occ. Cost | Occupancy | |||||||||||||||||||||||||||||||||||
Total | Non-Anchor | Total | Non-Anchor | Total | Non-Anchor | |||||||||||||||||||||||||||||||||||||||||||
Premier Malls | 33.4 | % | $520 | $69.09 | 13.7 | % | 96.9 | % | 95.4 | % | 31.9 | % | $540 | $ | 65.93 | 12.7 | % | 97.2 | % | 95.7 | % | (3.7 | )% | 4.8 | % | 1.0 | % | (0.3 | )% | (0.3 | )% | |||||||||||||||||
Core Growth Malls | 48.0 | % | $351 | $43.25 | 13.1 | % | 93.0 | % | 89.6 | % | 46.4 | % | $361 | $ | 42.04 | 12.6 | % | 92.8 | % | 89.3 | % | (2.8 | )% | 2.9 | % | 0.5 | % | 0.2 | % | 0.3 | % | |||||||||||||||||
Opportunistic Malls | 9.8 | % | $258 | $26.71 | 11.4 | % | 90.5 | % | 85.4 | % | 10.3 | % | $268 | $ | 25.93 | 11.1 | % | 92.0 | % | 85.4 | % | (3.7 | )% | 3.0 | % | 0.3 | % | (1.5 | )% | — | % | |||||||||||||||||
Non Core Malls | 2.9 | % | $268 | $31.95 | 12.5 | % | 90.7 | % | 75.3 | % | 3.2 | % | $268 | $ | 29.14 | 11.5 | % | 90.3 | % | 84.5 | % | — | % | 9.7 | % | 1.0 | % | 0.4 | % | (9.2 | )% | |||||||||||||||||
Total Malls | 94.1 | % | $378 | $46.48 | 13.1 | % | 93.1 | % | 89.5 | % | 91.8 | % | $389 | $ | 44.53 | 12.4 | % | 93.3 | % | 89.8 | % | (2.8 | )% | 4.4 | % | 0.7 | % | (0.2 | )% | (0.3 | )% | |||||||||||||||||
Other Retail Properties | 4.2 | % | N/A | $18.32 | N/A | 95.3 | % | 93.7 | % | 4.1 | % | N/A | $ | 18.17 | N/A | 94.9 | % | 93.1 | % | N/A | 0.8 | % | N/A | 0.4 | % | 0.6 | % | |||||||||||||||||||||
Total Retail Properties | 98.3 | % | N/A | $41.36 | N/A | 93.3 | % | 90.0 | % | 95.9 | % | N/A | $ | 40.08 | N/A | 93.4 | % | 90.2 | % | N/A | 3.2 | % | N/A | (0.1 | )% | (0.2 | )% | |||||||||||||||||||||
Sold Properties (3) | 1.5 | % | N/A | N/A | N/A | N/A | N/A | 3.9 | % | N/A | $ | 20.44 | N/A | 92.8 | % | 86.4 | % | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Other Properties | 0.2 | % | N/A | N/A | N/A | N/A | N/A | 0.2 | % | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Total Portfolio | 100.0 | % | $41.36 | 93.3 | % | 90.0 | % | 100.0 | % | $ | 39.14 | 93.4 | % | 90.0 | % | 5.7 | % | (0.1 | )% | — | % |
(1) | Average gross rent for malls includes all non-anchor space owned by the Company and leased to tenants that occupy individual spaces of 10,000 square feet or less. Average gross rent for other retail properties includes all non-anchor space owned by the Company regardless of size. |
(2) | Average gross rent for mall tenants greater than 10,000 sf was $18.29 per square foot as of June 30, 2014 and $17.86 per square foot as of June 30, 2013. |
(3) | Includes Chambersburg Mall, Christiana Center, Commons at Magnolia, and South Mall. |
June 30, 2014 | June 30, 2013 | Change | |||||||||||||||||||||||||||
Avg Comp Sales (1) | Total Occ % | Non Anchor Occup. % | Avg Comp Sales(1) | Total Occ % | Non Anchor Occup. % | Avg Comp Sales (1) | Total Occ % | Non Anchor Occup. % | |||||||||||||||||||||
Premier Malls | |||||||||||||||||||||||||||||
Cherry Hill Mall | $ | 627 | 95.1 | % | 94.1 | % | $ | 638 | 94.1 | % | 92.9 | % | (1.7 | )% | 1.0 | % | 1.2 | % | |||||||||||
Lehigh Valley Mall | 536 | 97.6 | % | 96.1 | % | 577 | 97.8 | % | 96.4 | % | (7.1 | )% | (0.2 | )% | (0.3 | )% | |||||||||||||
Woodland Mall | 519 | 97.7 | % | 97.7 | % | 528 | 98.1 | % | 98.1 | % | (1.7 | )% | (0.4 | )% | (0.4 | )% | |||||||||||||
Jacksonville Mall | 463 | 97.4 | % | 95.0 | % | 471 | 99.7 | % | 99.3 | % | (1.7 | )% | (2.3 | )% | (4.3 | )% | |||||||||||||
Willow Grove Park | 430 | 96.2 | % | 92.2 | % | 444 | 98.2 | % | 96.3 | % | (3.2 | )% | (2.0 | )% | (4.1 | )% | |||||||||||||
Dartmouth Mall | 423 | 98.6 | % | 97.7 | % | 447 | 96.2 | % | 93.7 | % | (5.4 | )% | 2.4 | % | 4.0 | % | |||||||||||||
Premier Malls Subtotal | $ | 520 | 96.9 | % | 95.4 | % | $ | 540 | 97.2 | % | 95.7 | % | (3.7 | )% | (0.3 | )% | (0.3 | )% | |||||||||||
Core Growth Malls | |||||||||||||||||||||||||||||
The Mall at Prince Georges | $ | 417 | 97.4 | % | 94.6 | % | $ | 383 | 96.1 | % | 91.7 | % | 8.9 | % | 1.3 | % | 2.9 | % | |||||||||||
Wyoming Valley Mall | 390 | 94.8 | % | 85.0 | % | 397 | 96.6 | % | 90.3 | % | (1.8 | )% | (1.8 | )% | (5.3 | )% | |||||||||||||
Springfield Mall | 388 | 95.7 | % | 95.7 | % | 398 | 94.5 | % | 94.5 | % | (2.5 | )% | 1.2 | % | 1.2 | % | |||||||||||||
Patrick Henry Mall | 383 | 94.0 | % | 91.3 | % | 395 | 95.3 | % | 93.1 | % | (3.0 | )% | (1.3 | )% | (1.8 | )% | |||||||||||||
Viewmont Mall | 382 | 93.9 | % | 84.1 | % | 369 | 99.1 | % | 97.6 | % | 3.5 | % | (5.2 | )% | (13.5 | )% | |||||||||||||
Capital City Mall | 371 | 97.5 | % | 95.7 | % | 381 | 97.6 | % | 95.9 | % | (2.6 | )% | (0.1 | )% | (0.2 | )% | |||||||||||||
Valley View Mall | 370 | 95.1 | % | 93.0 | % | 386 | 94.8 | % | 92.9 | % | (4.1 | )% | 0.3 | % | 0.1 | % | |||||||||||||
The Gallery at Market East | 367 | 76.5 | % | 76.9 | % | 357 | 77.1 | % | 78.7 | % | 2.8 | % | (0.6 | )% | (1.8 | )% | |||||||||||||
Valley Mall | 358 | 96.1 | % | 93.3 | % | 361 | 95.7 | % | 92.5 | % | (0.8 | )% | 0.4 | % | 0.8 | % | |||||||||||||
Francis Scott Key Mall | 349 | 96.8 | % | 94.9 | % | 370 | 97.0 | % | 95.0 | % | (5.7 | )% | (0.2 | )% | (0.1 | )% | |||||||||||||
Magnolia Mall | 348 | 99.2 | % | 98.2 | % | 342 | 99.4 | % | 98.5 | % | 1.8 | % | (0.2 | )% | (0.3 | )% | |||||||||||||
Moorestown Mall | 344 | 89.4 | % | 76.5 | % | 347 | 86.9 | % | 67.2 | % | (0.9 | )% | 2.5 | % | 9.3 | % | |||||||||||||
Crossroads Mall | 330 | 98.3 | % | 96.3 | % | 355 | 95.0 | % | 89.2 | % | (7.0 | )% | 3.3 | % | 7.1 | % | |||||||||||||
Plymouth Meeting Mall | 307 | 91.5 | % | 87.0 | % | 328 | 89.6 | % | 84.2 | % | (6.4 | )% | 1.9 | % | 2.8 | % | |||||||||||||
Exton Square Mall | 304 | 94.0 | % | 86.9 | % | 322 | 93.4 | % | 84.7 | % | (5.6 | )% | 0.6 | % | 2.2 | % | |||||||||||||
Cumberland Mall | 298 | 93.2 | % | 88.8 | % | 322 | 92.2 | % | 87.1 | % | (7.5 | )% | 1.0 | % | 1.7 | % | |||||||||||||
Logan Valley Mall | 294 | 96.1 | % | 90.6 | % | 327 | 96.7 | % | 92.1 | % | (10.1 | )% | (0.6 | )% | (1.5 | )% | |||||||||||||
Gadsden Mall | 288 | 98.0 | % | 95.0 | % | 322 | 96.0 | % | 90.0 | % | (10.6 | )% | 2.0 | % | 5.0 | % | |||||||||||||
Core Growth Malls Subtotal | $ | 351 | 93.0 | % | 89.6 | % | $ | 361 | 92.8 | % | 89.3 | % | (2.8 | )% | 0.2 | % | 0.3 | % | |||||||||||
Opportunistic Malls | |||||||||||||||||||||||||||||
Washington Crown Center | $ | 310 | 82.7 | % | 67.9 | % | $ | 271 | 85.9 | % | 73.8 | % | 14.4 | % | (3.2 | )% | (5.9 | )% | |||||||||||
Beaver Valley Mall | 271 | 95.7 | % | 90.6 | % | 259 | 94.3 | % | 87.7 | % | 4.6 | % | 1.4 | % | 2.9 | % | |||||||||||||
Uniontown Mall | 266 | 94.0 | % | 86.5 | % | 273 | 95.8 | % | 90.6 | % | (2.6 | )% | (1.8 | )% | (4.1 | )% | |||||||||||||
New River Valley Mall | 264 | 86.8 | % | 98.4 | % | 283 | 97.7 | % | 96.0 | % | (6.7 | )% | (10.9 | )% | 2.4 | % | |||||||||||||
Wiregrass Commons Mall | 260 | 90.1 | % | 85.5 | % | 287 | 92.7 | % | 89.4 | % | (9.4 | )% | (2.6 | )% | (3.9 | )% | |||||||||||||
Lycoming Mall | 247 | 96.4 | % | 93.0 | % | 264 | 96.7 | % | 93.7 | % | (6.4 | )% | (0.3 | )% | (0.7 | )% | |||||||||||||
Voorhees Town Center | 206 | 73.1 | % | 72.7 | % | 217 | 66.5 | % | 66.0 | % | (5.1 | )% | 6.6 | % | 6.7 | % | |||||||||||||
Opportunistic Malls Subtotal | $ | 258 | 90.5 | % | 85.4 | % | $ | 268 | 92.0 | % | 85.4 | % | (3.7 | )% | (1.5 | )% | — | % | |||||||||||
Malls Excluding Non Core Subtotal | $ | 384 | 93.3 | % | 90.2 | % | $ | 397 | 93.5 | % | 90.1 | % | (3.3 | )% | (0.2 | )% | 0.1 | % | |||||||||||
Non Core Malls | |||||||||||||||||||||||||||||
Palmer Park Mall | $ | 297 | 95.6 | % | 86.0 | % | $ | 295 | 93.1 | % | 77.9 | % | 0.7 | % | 7.3 | % | (13.1 | )% | |||||||||||
North Hanover Mall | 275 | 91.2 | % | 72.8 | % | 264 | 83.9 | % | 85.9 | % | 4.2 | % | |||||||||||||||||
Nittany Mall | 243 | 85.2 | % | 70.0 | % | 252 | 94.1 | % | 88.0 | % | (3.6 | )% | (8.9 | )% | (18.0 | )% | |||||||||||||
Non Core Malls Subtotal | $ | 268 | 90.7 | % | 75.3 | % | $ | 268 | 90.3 | % | 84.5 | % | — | % | 0.4 | % | (9.2 | )% | |||||||||||
Same Store Malls weighted average | $ | 378 | 93.1 | % | 89.5 | % | $ | 389 | 93.3 | % | 89.8 | % | (2.8 | )% | (0.2 | )% | (0.3 | )% | |||||||||||
Sold Properties | N/A | N/A | N/A | $ | 238 | 91.2 | % | 84.2 | % | N/A | N/A | N/A | |||||||||||||||||
Total Reported weighted average | $ | 378 | 93.1 | % | 89.5 | % | $ | 384 | 93.2 | % | 89.6 | % | (1.6 | )% | (0.1 | )% | (0.1 | )% |
(1) | Based on reported sales by all comparable non-anchor tenants that lease individual spaces of 10,000 square feet or less and have occupied the space for at least 24 months. |
Tenant (1) | Total Number of Locations | Percentage of Annualized Gross Rent (2) | ||||
Limited Brands, Inc. | 66 | 3.1 | % | |||
Gap, Inc. | 36 | 3.0 | % | |||
Signet Jewelers Limited | 98 | 2.9 | % | |||
Foot Locker, Inc. | 58 | 2.8 | % | |||
J.C. Penney Company, Inc. (3) | 27 | 2.6 | % | |||
American Eagle Outfitters, Inc. | 36 | 2.5 | % | |||
Sears Holding Corporation (4) | 26 | 2.0 | % | |||
Luxottica Group S.p.A. | 46 | 1.4 | % | |||
Ascena Retail Group, Inc. | 43 | 1.4 | % | |||
Commonwealth of Pennsylvania | 1 | 1.4 | % | |||
Genesco, Inc. | 59 | 1.4 | % | |||
Abercrombie & Fitch Co. | 19 | 1.3 | % | |||
Macy's, Inc. | 24 | 1.3 | % | |||
The Children's Place Retail Stores, Inc. | 27 | 1.2 | % | |||
Boscov's Department Store | 8 | 1.2 | % | |||
The Finish Line, Inc. | 25 | 1.1 | % | |||
Aeropostale, Inc. | 34 | 1.1 | % | |||
Regal Entertainment Group | 4 | 1.1 | % | |||
Dick's Sporting Goods, Inc. | 9 | 1.1 | % | |||
Shoe Show, Inc. | 25 | 1.0 | % | |||
Total Top 20 Tenants | 671 | 35.1 | % | |||
Total Leases | 2,779 | 100.0 | % |
(1) | Tenant includes all brands and concepts of the tenant and includes stores that are PREIT owned and not PREIT owned. |
(2) | Includes PREIT’s proportionate share of tenant gross rent from partnership properties based on PREIT’s ownership percentage in the respective partnerships. |
(3) | Includes a landlord owned store located at Exton Square Mall which the tenant closed in May 2014. The tenant will continue to pay rent through the end of the lease. |
(4) | Includes a landlord owned store located at The Gallery at Market East which the tenant closed in April 2014. The tenant will continue to pay rent through the end of the lease. |
Non-Anchors (1) | ||||||||||||||||||||||||
Gross Leasable Area | Annualized Gross Rent | |||||||||||||||||||||||
Lease Expiration Year | Number of Leases Expiring | Expiring GLA (2) | Percent of Total | Gross Rent in Expiring Year | PREIT’s Share of Gross Rent in Expiring Year (3) | Percent of PREIT’s Total | Average Expiring Gross Rent psf | |||||||||||||||||
Holdover | 189 | 609,590 | 5.6 | % | $ | 21,279 | $ | 19,399 | 5.6 | % | $ | 34.91 | ||||||||||||
2014 | 218 | 446,651 | 4.1 | % | 16,999 | 16,452 | 4.8 | % | 38.06 | |||||||||||||||
2015 | 429 | 1,605,032 | 14.6 | % | 53,716 | 49,658 | 14.4 | % | 33.47 | |||||||||||||||
2016 | 420 | 1,605,392 | 14.6 | % | 57,475 | 52,339 | 15.1 | % | 35.80 | |||||||||||||||
2017 | 328 | 1,115,311 | 10.2 | % | 42,102 | 38,312 | 11.1 | % | 37.75 | |||||||||||||||
2018 | 264 | 1,223,764 | 11.1 | % | 42,003 | 38,194 | 11.1 | % | 34.32 | |||||||||||||||
2019 | 194 | 943,447 | 8.6 | % | 31,246 | 28,637 | 8.3 | % | 33.12 | |||||||||||||||
2020 | 127 | 827,592 | 7.5 | % | 22,524 | 20,862 | 6.0 | % | 27.22 | |||||||||||||||
2021 | 121 | 522,931 | 4.8 | % | 19,151 | 17,064 | 4.9 | % | 36.62 | |||||||||||||||
2022 | 124 | 619,292 | 5.6 | % | 21,391 | 18,942 | 5.5 | % | 34.54 | |||||||||||||||
2023 | 152 | 832,472 | 7.6 | % | 28,756 | 25,559 | 7.4 | % | 34.54 | |||||||||||||||
Thereafter | 117 | 631,643 | 5.7 | % | 21,293 | 20,193 | 5.8 | % | 33.71 | |||||||||||||||
Total/Average | 2,683 | 10,983,117 | 100.0 | % | $ | 377,935 | $ | 345,611 | 100.0 | % | $ | 34.41 |
Anchors (1) | ||||||||||||||||||||||||
Gross Leasable Area | Annualized Gross Rent | |||||||||||||||||||||||
Lease Expiration Year | Number of Leases Expiring (4) | Expiring GLA | Percent of Total | Gross Rent in Expiring Year | PREIT’s Share of Gross Rent in Expiring Year (3) | Percent of PREIT’s Total | Average Expiring Gross Rent psf | |||||||||||||||||
2014 | 2 | 141,485 | 1.4 | % | $ | 1,086 | $ | 1,086 | 2.0 | % | $ | 7.68 | ||||||||||||
2015 | 12 | 1,210,881 | 11.7 | % | 6,179 | 6,179 | 11.5 | % | 5.10 | |||||||||||||||
2016 | 17 | 1,732,683 | 16.8 | % | 6,728 | 6,728 | 12.5 | % | 3.88 | |||||||||||||||
2017 | 10 | 1,400,890 | 13.6 | % | 4,646 | 4,263 | 8.0 | % | 3.32 | |||||||||||||||
2018 | 14 | 1,325,258 | 12.9 | % | 6,004 | 6,004 | 11.2 | % | 4.53 | |||||||||||||||
2019 | 18 | 1,953,497 | 19.0 | % | 7,613 | 6,979 | 13.0 | % | 3.90 | |||||||||||||||
2020 | 4 | 450,227 | 4.4 | % | 1,290 | 1,290 | 2.4 | % | 2.87 | |||||||||||||||
2021 | 4 | 481,791 | 4.7 | % | 5,533 | 4,183 | 7.8 | % | 11.48 | |||||||||||||||
2022 | 4 | 521,173 | 5.0 | % | 2,646 | 2,646 | 4.9 | % | 5.08 | |||||||||||||||
Thereafter | 11 | 1,086,826 | 10.5 | % | 14,957 | 14,319 | 26.7 | % | 13.76 | |||||||||||||||
Total/Average | 96 | 10,304,711 | 100.0 | % | $ | 56,682 | $ | 53,677 | 100.0 | % | $ | 5.50 |
(1) | Only includes owned space. |
(2) | Does not include tenants occupying space under license agreements with initial terms of less than one year. The GLA of these tenants is 402,456 square feet. |
(3) | Includes PREIT’s proportionate share of tenant rent from partnership properties based on PREIT’s ownership percentage in the respective partnerships. |
(4) | Accounts for all contiguous anchor space as one lease. |
Landlord Owned Anchors | Anchor Stores Not Owned | Non-anchor occupied | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Properties | State | Ownership | Date Acquired | Year Built/ Last Renovated | Nordstrom | Macy’s | JCPenney | Sears | Boscov’s | Bon-Ton(1) | Other(s) | Total | Macy’s | JCPenney | Sears | Boscov’s | Bon-Ton | Other(s) | Total | Large Format | Small Shop | Vacant | Total GLA | ||||||||||||||||||||||||||||||||||||||||||
Premier Malls | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cherry Hill Mall | NJ | 100% | 2003 | 1961/2009 | 138 | — | — | — | — | — | — | 138 | 305 | 174 | — | — | — | — | 479 | 204 | 444 | 41 | 1,306 | ||||||||||||||||||||||||||||||||||||||||||
Dartmouth Mall | MA | 100% | 1997 | 1971/2000 | — | — | 100 | 108 | — | — | — | 208 | 140 | — | — | — | — | — | 140 | 142 | 172 | 7 | 669 | ||||||||||||||||||||||||||||||||||||||||||
Jacksonville Mall | NC | 100% | 2003 | 1981/2008 | — | — | 52 | 117 | — | — | 73 | 242 | — | — | — | — | — | — | — | 99 | 137 | 13 | 491 | ||||||||||||||||||||||||||||||||||||||||||
Lehigh Valley Mall | PA | 50% | 1973 | 1977/2007 | — | 212 | — | — | 165 | — | — | 377 | — | 207 | — | — | — | — | 207 | 183 | 379 | 23 | 1,169 | ||||||||||||||||||||||||||||||||||||||||||
Willow Grove Park | PA | 100% | 2000-03 | 1982/2001 | 40 | 225 | 125 | — | — | — | — | 390 | 237 | — | 176 | — | — | — | 413 | 77 | 270 | 29 | 1,179 | ||||||||||||||||||||||||||||||||||||||||||
Woodland Mall | MI | 100% | 2005 | 1968/1998 | — | — | — | — | — | — | — | — | 157 | 255 | 313 | — | — | — | 725 | 167 | 267 | 10 | 1,169 | ||||||||||||||||||||||||||||||||||||||||||
Total Premier Malls | 178 | 437 | 277 | 225 | 165 | — | 73 | 1,355 | 839 | 636 | 489 | — | — | — | 1,964 | 872 | 1,669 | 123 | 5,983 | ||||||||||||||||||||||||||||||||||||||||||||||
Core Growth Malls | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital City Mall | PA | 100% | 2003 | 1974/2005 | — | — | 103 | 101 | — | — | — | 204 | 120 | — | — | — | — | — | 120 | 81 | 197 | 13 | 615 | ||||||||||||||||||||||||||||||||||||||||||
Crossroads Mall | WV | 100% | 2003 | 1981 | — | — | 90 | 87 | — | — | 78 | 255 | — | — | — | — | — | — | — | 74 | 132 | 8 | 469 | ||||||||||||||||||||||||||||||||||||||||||
Cumberland Mall | NJ | 100% | 2005 | 1973/2003 | — | — | 51 | — | — | — | 213 | 264 | — | — | — | 155 | — | 118 | 273 | 211 | 149 | 45 | 942 | ||||||||||||||||||||||||||||||||||||||||||
Exton Square Mall (2) | PA | 100% | 2003 | 1973/2000 | — | — | 118 | 144 | 178 | — | — | 440 | 181 | — | 96 | — | — | — | 277 | 58 | 263 | 49 | 1,087 | ||||||||||||||||||||||||||||||||||||||||||
Francis Scott Key Mall | MD | 100% | 2003 | 1978/1991 | — | — | 101 | 121 | — | — | — | 222 | 139 | — | — | — | — | — | 139 | 141 | 200 | 18 | 720 | ||||||||||||||||||||||||||||||||||||||||||
Gadsden Mall | AL | 100% | 2005 | 1974/1990 | — | — | 88 | 112 | — | — | 101 | 301 | — | — | — | — | — | — | — | 96 | 100 | 10 | 507 | ||||||||||||||||||||||||||||||||||||||||||
The Gallery at Market East (3) | PA | 100% | 2003 | 1977/1990 | — | — | — | 133 | — | — | 621 | 754 | — | — | — | — | — | — | — | 119 | 216 | 335 | 1,424 | ||||||||||||||||||||||||||||||||||||||||||
Logan Valley Mall | PA | 100% | 2003 | 1960/1997 | — | 150 | 146 | 159 | — | — | — | 455 | — | — | — | — | — | — | — | 59 | 237 | 30 | 781 | ||||||||||||||||||||||||||||||||||||||||||
Magnolia Mall | SC | 100% | 1997 | 1979/2007 | — | — | 104 | 91 | — | — | 148 | 343 | — | — | — | — | — | — | — | 99 | 173 | 5 | 620 | ||||||||||||||||||||||||||||||||||||||||||
Moorestown Mall | NJ | 100% | 2003 | 1963/2008 | — | — | — | 206 | 203 | — | — | 409 | 200 | — | — | — | — | 121 | 321 | 73 | 184 | 79 | 1,066 | ||||||||||||||||||||||||||||||||||||||||||
Patrick Henry Mall | VA | 100% | 2003 | 1988/2005 | — | — | 85 | — | — | — | 50 | 135 | 140 | — | — | — | — | 145 | 285 | 38 | 233 | 26 | 717 | ||||||||||||||||||||||||||||||||||||||||||
Plymouth Meeting Mall | PA | 100% | 2003 | 1966/2009 | — | — | — | — | 189 | — | 65 | 254 | 215 | — | — | — | — | — | 215 | 198 | 219 | 62 | 948 | ||||||||||||||||||||||||||||||||||||||||||
The Mall at Prince Georges | MD | 100% | 1998 | 1959/2004 | — | 196 | 149 | — | — | — | 135 | 480 | — | — | — | — | — | — | — | 155 | 258 | 23 | 916 | ||||||||||||||||||||||||||||||||||||||||||
Springfield Mall | PA | 50% | 2005 | 1974/1997 | — | — | — | — | — | — | — | — | 192 | — | — | — | — | 196 | 388 | 10 | 203 | 10 | 611 | ||||||||||||||||||||||||||||||||||||||||||
Valley Mall | MD | 100% | 2003 | 1974/1999 | — | — | 157 | — | — | 123 | — | 280 | 120 | — | 123 | — | — | — | 243 | 127 | 237 | 26 | 913 | ||||||||||||||||||||||||||||||||||||||||||
Valley View Mall | WI | 100% | 2003 | 1980/2001 | — | — | 96 | — | — | — | — | 96 | 100 | — | 113 | — | 42 | — | 255 | 42 | 176 | 16 | 585 | ||||||||||||||||||||||||||||||||||||||||||
Viewmont Mall | PA | 100% | 2003 | 1968/2006 | — | — | 193 | 193 | — | — | — | 386 | 140 | — | — | — | — | — | 140 | 51 | 152 | 38 | 767 | ||||||||||||||||||||||||||||||||||||||||||
Wyoming Valley Mall | PA | 100% | 2003 | 1971/2006 | — | 146 | 173 | 118 | — | 155 | — | 592 | — | — | — | — | — | — | — | 91 | 180 | 48 | 911 | ||||||||||||||||||||||||||||||||||||||||||
Core Growth Malls | — | 492 | 1,654 | 1,465 | 570 | 278 | 1,411 | 5,870 | 1,547 | — | 332 | 155 | 42 | 580 | 2,656 | 1,723 | 3,509 | 841 | 14,599 |
Landlord Owned Anchors | Anchor Stores Not Owned | Non-anchor occupied | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Properties | State | Ownership | Date Acquired | Year Built/ Last Renovated | Nordstrom | Macy’s | JCPenney | Sears | Boscov’s | Bon-Ton(1) | Other(s) | Total | Macy’s | JCPenney | Sears | Boscov’s | Bon-Ton | Other(s) | Total | Large Format | Small Shop | Vacant | Total GLA | ||||||||||||||||||||||||||||||||||||||||||
Opportunistic Malls | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beaver Valley Mall | PA | 100% | 2002 | 1970/1991 | — | — | 126 | 191 | 194 | — | — | 511 | 205 | — | — | — | — | — | 205 | 193 | 203 | 41 | 1,153 | ||||||||||||||||||||||||||||||||||||||||||
Lycoming Mall | PA | 100% | 2003 | 1978/2007 | — | — | 62 | 130 | — | 60 | 81 | 333 | 120 | — | — | — | — | — | 120 | 162 | 167 | 25 | 807 | ||||||||||||||||||||||||||||||||||||||||||
New River Valley Mall | VA | 100% | 2003 | 1988/2007 | — | — | 50 | — | — | — | 88 | 138 | — | — | — | — | — | — | — | 135 | 129 | 61 | 463 | ||||||||||||||||||||||||||||||||||||||||||
Uniontown Mall | PA | 100% | 2003 | 1972/1990 | — | — | 63 | 100 | — | 80 | 148 | 391 | — | — | — | — | — | — | — | 102 | 166 | 42 | 701 | ||||||||||||||||||||||||||||||||||||||||||
Voorhees Town Center | NJ | 100% | 2003 | 1970/2007 | — | — | — | — | 4 | — | — | 4 | 224 | — | — | 173 | — | 24 | 421 | 68 | 150 | 82 | 725 | ||||||||||||||||||||||||||||||||||||||||||
Washington Crown Center | PA | 100% | 2003 | 1969/1999 | — | — | — | 83 | — | 78 | 84 | 245 | 140 | — | — | — | — | — | 140 | 79 | 117 | 92 | 673 | ||||||||||||||||||||||||||||||||||||||||||
Wiregrass Commons Mall | AL | 100% | 2003 | 1986/2008 | — | — | — | — | — | — | 95 | 95 | — | 84 | — | — | — | 248 | 332 | — | 178 | 30 | 635 | ||||||||||||||||||||||||||||||||||||||||||
Opportunistic Malls | — | — | 301 | 504 | 198 | 218 | 496 | 1,717 | 689 | 84 | — | 173 | — | 272 | 1,218 | 739 | 1,110 | 373 | 5,157 | ||||||||||||||||||||||||||||||||||||||||||||||
Non Core Malls | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nittany Mall | PA | 100% | 2003 | 1968/1990 | — | — | 63 | 98 | — | 61 | — | 222 | 95 | — | — | — | — | — | 95 | 13 | 139 | 65 | 534 | ||||||||||||||||||||||||||||||||||||||||||
North Hanover Mall | PA | 100% | 2003 | 1967/1999 | — | — | 99 | 104 | — | — | 103 | 306 | — | — | — | — | — | — | — | 21 | 86 | 40 | 453 | ||||||||||||||||||||||||||||||||||||||||||
Palmer Park Mall | PA | 100% | 1972/2003 | 1972/1998 | — | — | — | — | 192 | 122 | — | 314 | — | — | — | — | — | — | — | — | 124 | 20 | 458 | ||||||||||||||||||||||||||||||||||||||||||
Non Core Malls | — | — | 162 | 202 | 192 | 183 | 103 | 842 | 95 | — | — | — | — | — | 95 | 34 | 349 | 125 | 1,445 | ||||||||||||||||||||||||||||||||||||||||||||||
Other Retail Properties | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Street Level Retail (2 properties) | PA | 100% | 2014 | 1910/1960 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 49 | 24 | 1 | 74 | ||||||||||||||||||||||||||||||||||||||||||
Metroplex Shopping Center | PA | 50% | 1999 | 2001 | — | — | — | — | — | — | 67 | 67 | — | — | — | — | — | 301 | 301 | 354 | 56 | — | 778 | ||||||||||||||||||||||||||||||||||||||||||
The Court at Oxford Valley | PA | 50% | 1997 | 1996 | — | — | — | — | — | — | 60 | 60 | — | — | — | — | — | 247 | 247 | 290 | 54 | 53 | 704 | ||||||||||||||||||||||||||||||||||||||||||
Red Rose Commons | PA | 50% | 1998 | 1998 | — | — | — | — | — | — | — | — | — | — | — | — | — | 200 | 200 | 248 | 15 | — | 463 | ||||||||||||||||||||||||||||||||||||||||||
Springfield Park | PA | 50% | 1997/1998 | 1997/1998 | — | — | — | — | — | — | 98 | 98 | — | — | — | — | — | 146 | 146 | 21 | 22 | — | 287 | ||||||||||||||||||||||||||||||||||||||||||
Whitehall Mall | PA | 50% | 1964 | 1964/1998 | — | — | — | 213 | — | — | 82 | 295 | — | — | — | — | — | — | — | 196 | 51 | 40 | 582 | ||||||||||||||||||||||||||||||||||||||||||
Strip and Power Centers | — | — | — | 213 | — | — | 307 | 520 | — | — | — | — | — | 894 | 894 | 1,158 | 222 | 94 | 2,888 | ||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Totals | 178 | 929 | 2,394 | 2,609 | 1,125 | 679 | 2,390 | 10,304 | 3,170 | 720 | 821 | 328 | 42 | 1,746 | 6,827 | 4,526 | 6,859 | 1,556 | 30,072 |
(1) | Does not include The Bon-Ton store located at Westgate. |
(2) | JCPenney closed this store in May 2014. The tenant will continue to pay rent through the end of the lease. |
(3) | Includes K-Mart located at 907 Market Street, which was acquired in April 2013. Sears closed this store in April 2014 and will continue to pay rent through the end of the lease. |
Department Store Tenants | ||||||||||||||||||||||||
Properties | Belk | Bon-Ton (1) | Boscov’s | Burlington Coat Factory | Dillard’s | JCPenney | Kohl’s | Lord & Taylor | Macy’s | Nordstrom | Sears | Target | ||||||||||||
Premier Malls | ||||||||||||||||||||||||
Cherry Hill Mall | — | — | — | — | — | (2) | — | — | (2) | 2025 | — | — | ||||||||||||
Dartmouth Mall | — | — | — | — | — | 2019 | — | — | (2) | — | 2016 | — | ||||||||||||
Jacksonville Mall | 2016 | — | — | — | — | 2015 | — | — | — | — | 2016 | — | ||||||||||||
Lehigh Valley Mall | — | — | 2017 | — | — | (2) | — | — | 2017 | — | — | — | ||||||||||||
Willow Grove Park (3) | — | — | — | — | — | 2032 | — | — | 2022, (2) | 2022 | (2) | — | ||||||||||||
Woodland Mall | — | — | — | — | — | (2) | (2) | — | (2) | — | (2) | — | ||||||||||||
Core Growth Malls | ||||||||||||||||||||||||
Capital City Mall | — | — | — | — | — | 2015 | — | — | (2) | — | 2019 | — | ||||||||||||
Crossroads Mall | 2019 | — | — | — | — | 2016 | — | — | — | — | 2016 | — | ||||||||||||
Cumberland Mall | — | — | (2) | 2019 | — | 2018 | — | — | — | — | — | — | ||||||||||||
Exton Square Mall (4)(5) | — | — | 2019 | — | — | 2020 | — | — | (2) | — | 2019, (2) | — | ||||||||||||
Francis Scott Key Mall | — | — | — | — | — | 2016 | — | — | (2) | — | 2018 | — | ||||||||||||
Gadsden Mall | 2019 | — | — | — | — | 2028 | — | — | — | — | 2019 | — | ||||||||||||
The Gallery at Market East (6) | — | — | — | 2032 | — | — | — | — | — | — | 2014 | — | ||||||||||||
Logan Valley Mall | — | — | — | — | — | 2017 | — | — | 2020 | — | 2016 | — | ||||||||||||
Magnolia Mall | 2016 | — | — | — | — | 2017 | — | — | — | — | 2017 | — | ||||||||||||
Moorestown Mall | — | — | 2015 | — | — | — | — | (2) | (2) | — | 2022 | — | ||||||||||||
Patrick Henry Mall | — | — | — | — | (2) | 2015 | — | — | (2) | — | — | — | ||||||||||||
Plymouth Meeting Mall | — | — | 2016 | — | — | — | — | — | (2) | — | — | — | ||||||||||||
The Mall at Prince Georges | — | — | — | — | — | 2016 | — | — | 2018 | — | — | 2019 | ||||||||||||
Springfield Mall | — | — | — | — | — | — | — | — | (2) | — | — | (2) | ||||||||||||
Valley Mall | — | 2019 | — | — | — | 2019 | — | — | (2) | — | (2) | — | ||||||||||||
Valley View Mall | — | (2) | — | — | — | 2015 | — | — | (2) | — | (2) | — | ||||||||||||
Viewmont Mall | — | — | — | — | — | 2015 | — | — | (2) | — | 2015 | — | ||||||||||||
Wyoming Valley Mall | — | 2017 | — | — | — | 2017 | — | — | 2017 | — | 2016 | — |
Department Store Tenants | ||||||||||||||||||||||||
Properties | Belk | Bon-Ton (1) | Boscov’s | Burlington Coat Factory | Dillard’s | JCPenney | Kohl’s | Lord & Taylor | Macy’s | Nordstrom | Sears | Target | ||||||||||||
Opportunistic Malls | ||||||||||||||||||||||||
Beaver Valley Mall | — | — | 2018 | — | — | 2017 | — | — | (2) | — | 2016 | — | ||||||||||||
Lycoming Mall | — | 2016 | — | 2019 | — | 2015 | — | — | (2) | — | 2018 | — | ||||||||||||
New River Valley Mall | 2020 | — | — | — | — | 2018 | — | — | — | — | — | — | ||||||||||||
Uniontown Mall | — | 2016 | — | 2019 | — | 2015 | — | — | — | — | 2018 | — | ||||||||||||
Voorhees Town Center | — | — | (2) | — | — | — | — | — | (2) | — | — | — | ||||||||||||
Washington Crown Center | — | 2018 | — | — | — | — | — | — | (2) | — | 2019 | — | ||||||||||||
Wiregrass Commons Mall | (2) | — | — | 2020 | (2) | (2) | — | — | — | — | — | — | ||||||||||||
Non Core Malls | ||||||||||||||||||||||||
Nittany Mall | — | 2018 | — | — | — | 2015 | — | — | (2) | — | 2015 | — | ||||||||||||
North Hanover Mall | — | — | — | — | — | 2027 | — | — | — | — | 2019 | — | ||||||||||||
Palmer Park Mall | — | 2019 | 2018 | — | — | — | — | — | — | — | — | — | ||||||||||||
Other Retail Properties | ||||||||||||||||||||||||
Street Level Retail (2 Properties) | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||
Metroplex Shopping Center | — | — | — | — | — | — | — | — | — | — | — | (2) | ||||||||||||
The Court at Oxford Valley | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||
Red Rose Commons | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||
Springfield Park | — | — | — | — | — | — | — | — | — | — | — | (2) | ||||||||||||
Whitehall Mall | — | — | — | — | — | — | 2017 | — | — | — | 2021 | — | ||||||||||||
Total PREIT Owned Department Stores | 5 | 7 | 6 | 5 | — | 23 | 1 | — | 5 | 2 | 21 | 1 | ||||||||||||
Total Non-PREIT Owned Department Stores | 1 | 1 | 2 | — | 2 | 4 | 1 | 1 | 19 | — | 5 | 3 |
(1) | Total PREIT owned department stores does not include The Bon-Ton store located at Westgate. |
(2) | Department store is not PREIT owned. |
(3) | The property has a Macy’s that is PREIT owned and a Bloomingdale’s that is not PREIT owned. |
(4) | The property has a Sears that is PREIT owned and a K-Mart that is not PREIT owned. |
(5) | JCPenney closed this landlord owned store at this property in May 2014. The tenant will continue to pay rent through the end of the lease. |
(6) | Includes K-Mart located at 907 Market Street, which was acquired in April 2013. Sears closed this store in April 2014 and will continue to pay rent through the end of the lease. |
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
GAAP | Share of Unconsolidated Partnerships | Total | GAAP | Share of Unconsolidated Partnerships | Total | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments in real estate, at cost | ||||||||||||||||||||||||
Operating properties | $ | 3,437,079 | $ | 222,911 | $ | 3,659,990 | $ | 3,450,317 | $ | 218,167 | $ | 3,668,484 | ||||||||||||
Construction in progress | 85,416 | 2,309 | 87,725 | 68,835 | 953 | 69,788 | ||||||||||||||||||
Land held for development | 8,716 | — | 8,716 | 8,716 | — | 8,716 | ||||||||||||||||||
Total investments in real estate | 3,531,211 | 225,220 | 3,756,431 | 3,527,868 | 219,120 | 3,746,988 | ||||||||||||||||||
Accumulated depreciation | (1,063,080 | ) | (89,564 | ) | (1,152,644 | ) | (1,012,746 | ) | (86,289 | ) | (1,099,035 | ) | ||||||||||||
Net investments in real estate | 2,468,131 | 135,656 | 2,603,787 | 2,515,122 | 132,831 | 2,647,953 | ||||||||||||||||||
Investments in partnerships, at equity | 19,170 | (19,170 | ) | — | 15,963 | (15,963 | ) | — | ||||||||||||||||
Other assets: | ||||||||||||||||||||||||
Cash and cash equivalents | 30,741 | 5,889 | 36,630 | 34,230 | 7,637 | 41,867 | ||||||||||||||||||
Rent and other receivables (2) | 37,995 | 2,727 | 40,722 | 46,439 | 1,783 | 48,222 | ||||||||||||||||||
Intangible assets, net | 8,434 | 55 | 8,489 | 9,075 | 70 | 9,145 | ||||||||||||||||||
Deferred costs and other assets, net | 92,295 | 14,596 | 106,891 | 97,752 | 15,889 | 113,641 | ||||||||||||||||||
Total assets | $ | 2,656,766 | $ | 139,753 | $ | 2,796,519 | $ | 2,718,581 | $ | 142,247 | $ | 2,860,828 | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Mortgage loans | $ | 1,494,801 | $ | 196,737 | $ | 1,691,538 | $ | 1,502,650 | $ | 198,451 | $ | 1,701,101 | ||||||||||||
Term Loans | 130,000 | — | 130,000 | — | — | — | ||||||||||||||||||
Revolving Facility | — | — | — | 130,000 | — | 130,000 | ||||||||||||||||||
Tenants’ deposits and deferred rent | 17,119 | 3,254 | 20,373 | 17,896 | 4,151 | 22,047 | ||||||||||||||||||
Distributions in excess of partnership investments | 64,675 | (64,675 | ) | — | 64,491 | (64,491 | ) | — | ||||||||||||||||
Fair value of derivative instruments | 3,245 | — | 3,245 | 844 | — | 844 | ||||||||||||||||||
Other liabilities | 87,132 | 4,437 | 91,569 | 76,248 | 4,136 | 80,384 | ||||||||||||||||||
Total liabilities | 1,796,972 | 139,753 | 1,936,725 | 1,792,129 | 142,247 | 1,934,376 | ||||||||||||||||||
Equity: | ||||||||||||||||||||||||
Total equity | 859,794 | — | 859,794 | 926,452 | — | 926,452 | ||||||||||||||||||
Total liabilities and equity | $ | 2,656,766 | $ | 139,753 | $ | 2,796,519 | $ | 2,718,581 | $ | 142,247 | $ | 2,860,828 |
(1) | Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties. |
(2) | Total includes straight line rent of $29.5 million ($27.0 million consolidated, $2.5 million unconsolidated) as of June 30, 2014 and $28.9 million ($26.4 million consolidated, $2.5 million unconsolidated) as of December 31, 2013. |
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Operating Properties and Land Held for Development | Construction in Progress | Accumulated Depreciation | Net Real Estate | Operating Properties and Land Held for Development | Construction in Progress | Accumulated Depreciation | Net Real Estate | |||||||||||||||||||||||||
Consolidated Malls | ||||||||||||||||||||||||||||||||
Beaver Valley Mall | $ | 72,632 | $ | — | $ | 28,828 | $ | 43,804 | $ | 72,133 | $ | — | $ | 27,238 | $ | 44,895 | ||||||||||||||||
Capital City Mall | 98,429 | — | 32,486 | 65,943 | 98,304 | — | 30,772 | 67,532 | ||||||||||||||||||||||||
Cherry Hill Mall | 462,991 | — | 151,867 | 311,124 | 461,126 | — | 139,719 | 321,407 | ||||||||||||||||||||||||
Crossroads Mall | 48,461 | 195 | 13,879 | 34,777 | 47,658 | 192 | 12,959 | 34,891 | ||||||||||||||||||||||||
Cumberland Mall | 66,645 | — | 16,175 | 50,470 | 66,546 | — | 15,102 | 51,444 | ||||||||||||||||||||||||
Dartmouth Mall | 64,002 | — | 31,527 | 32,475 | 63,842 | — | 30,532 | 33,310 | ||||||||||||||||||||||||
Exton Square Mall | 155,133 | 2,028 | 39,192 | 117,969 | 154,918 | 1,007 | 37,154 | 118,771 | ||||||||||||||||||||||||
Francis Scott Key Mall | 81,609 | 3,489 | 26,685 | 58,413 | 81,449 | 400 | 25,159 | 56,690 | ||||||||||||||||||||||||
Gadsden Mall | 63,925 | — | 15,376 | 48,549 | 63,365 | — | 14,276 | 49,089 | ||||||||||||||||||||||||
The Gallery at Market East | 245,273 | 12,510 | 51,995 | 205,788 | 245,189 | 7,406 | 46,201 | 206,394 | ||||||||||||||||||||||||
Jacksonville Mall | 82,267 | 929 | 25,638 | 57,558 | 82,094 | — | 24,214 | 57,880 | ||||||||||||||||||||||||
Logan Valley Mall | 98,075 | — | 30,783 | 67,292 | 98,012 | — | 29,457 | 68,555 | ||||||||||||||||||||||||
Lycoming Mall | 78,699 | — | 25,174 | 53,525 | 78,665 | — | 23,791 | 54,874 | ||||||||||||||||||||||||
Magnolia Mall | 91,672 | — | 35,562 | 56,110 | 91,666 | — | 33,817 | 57,849 | ||||||||||||||||||||||||
Moorestown Mall | 120,320 | 6,721 | 35,837 | 91,204 | 114,883 | 3,216 | 33,446 | 84,653 | ||||||||||||||||||||||||
New River Valley Mall | 59,197 | — | 25,953 | 33,244 | 59,169 | — | 24,375 | 34,794 | ||||||||||||||||||||||||
Nittany Mall (2) | 23,575 | — | 5,448 | 18,127 | 44,454 | — | 12,961 | 31,493 | ||||||||||||||||||||||||
North Hanover Mall (3) | 22,535 | 68 | 7,223 | 15,380 | 22,852 | — | 6,747 | 16,105 | ||||||||||||||||||||||||
Palmer Park Mall | 34,800 | — | 14,702 | 20,098 | 34,866 | — | 14,320 | 20,546 | ||||||||||||||||||||||||
Patrick Henry Mall | 144,966 | — | 50,493 | 94,473 | 144,331 | — | 47,753 | 96,578 | ||||||||||||||||||||||||
Plymouth Meeting Mall | 169,869 | 322 | 50,834 | 119,357 | 167,174 | 2,080 | 46,953 | 122,301 | ||||||||||||||||||||||||
The Mall at Prince Georges | 103,511 | — | 44,229 | 59,282 | 103,462 | — | 42,357 | 61,105 | ||||||||||||||||||||||||
South Mall (4) | — | — | — | — | 32,655 | — | 8,708 | 23,947 | ||||||||||||||||||||||||
Uniontown Mall | 43,052 | — | 15,125 | 27,927 | 43,037 | — | 14,285 | 28,752 | ||||||||||||||||||||||||
Valley Mall | 98,417 | 147 | 30,362 | 68,202 | 98,297 | — | 28,898 | 69,399 | ||||||||||||||||||||||||
Valley View Mall | 70,952 | 800 | 19,248 | 52,504 | 69,925 | — | 18,212 | 51,713 | ||||||||||||||||||||||||
Viewmont Mall | 93,826 | — | 28,081 | 65,745 | 92,644 | — | 26,362 | 66,282 | ||||||||||||||||||||||||
Voorhees Town Center | 81,461 | 276 | 25,350 | 56,387 | 79,888 | 302 | 22,989 | 57,201 | ||||||||||||||||||||||||
Washington Crown Center | 45,659 | 3,596 | 15,948 | 33,307 | 43,835 | 141 | 15,369 | 28,607 | ||||||||||||||||||||||||
Willow Grove Park | 232,358 | — | 69,058 | 163,300 | 232,099 | — | 65,183 | 166,916 | ||||||||||||||||||||||||
Wiregrass Commons Mall | 55,164 | — | 15,788 | 39,376 | 54,885 | — | 14,744 | 40,141 | ||||||||||||||||||||||||
Woodland Mall | 192,202 | — | 47,869 | 144,333 | 191,781 | — | 44,730 | 147,051 | ||||||||||||||||||||||||
Wyoming Valley Mall | 110,210 | — | 35,942 | 74,268 | 110,148 | — | 33,929 | 76,219 | ||||||||||||||||||||||||
Total Consolidated Malls | 3,411,887 | 31,081 | 1,062,657 | 2,380,311 | 3,445,352 | 14,744 | 1,012,712 | 2,447,384 | ||||||||||||||||||||||||
Unconsolidated Malls | ||||||||||||||||||||||||||||||||
Lehigh Valley Mall | 45,859 | 402 | 22,788 | 23,473 | 45,726 | 162 | 21,869 | 24,019 | ||||||||||||||||||||||||
Springfield Mall | 56,897 | 7 | 15,896 | 41,008 | 56,897 | 6 | 15,145 | 41,758 | ||||||||||||||||||||||||
Total Unconsolidated Malls | 102,756 | 409 | 38,684 | 64,481 | 102,623 | 168 | 37,014 | 65,777 | ||||||||||||||||||||||||
TOTAL MALLS | $ | 3,514,643 | $ | 31,490 | $ | 1,101,341 | $ | 2,444,792 | $ | 3,547,975 | $ | 14,912 | $ | 1,049,726 | $ | 2,513,161 |
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Operating Property and Land Held for Development | Construction in Progress | Accumulated Depreciation | Net Real Estate | Operating Property and Land Held for Development | Construction in Progress | Accumulated Depreciation | Net Real Estate | |||||||||||||||||||||||||
Consolidated Other Retail Properties | ||||||||||||||||||||||||||||||||
Monroe Marketplace (5) | $ | 1,515 | $ | — | $ | 47 | $ | 1,468 | $ | 1,515 | $ | — | $ | 34 | $ | 1,481 | ||||||||||||||||
Pitney Road Plaza (6) | — | 319 | — | 319 | — | 75 | — | 75 | ||||||||||||||||||||||||
Street Level Retail (2 Properties) | 20,227 | — | 376 | 19,851 | — | — | — | — | ||||||||||||||||||||||||
Westgate Anchor Pad (7) | 3,450 | — | — | 3,450 | 3,450 | — | — | 3,450 | ||||||||||||||||||||||||
Total Consolidated Other Retail Properties | 25,192 | 319 | 423 | 25,088 | 4,965 | 75 | 34 | 5,006 | ||||||||||||||||||||||||
Unconsolidated Other Retail Properties | ||||||||||||||||||||||||||||||||
Metroplex Shopping Center | 42,919 | — | 21,346 | 21,573 | 42,919 | — | 20,514 | 22,405 | ||||||||||||||||||||||||
The Court at Oxford Valley | 28,760 | 20 | 10,608 | 18,172 | 28,760 | — | 10,317 | 18,443 | ||||||||||||||||||||||||
Red Rose Commons | 13,617 | 1 | 5,153 | 8,465 | 13,617 | 1 | 5,009 | 8,609 | ||||||||||||||||||||||||
Springfield Park | 8,297 | — | 2,094 | 6,203 | 7,217 | — | 1,986 | 5,231 | ||||||||||||||||||||||||
Whitehall Mall | 16,825 | 25 | 9,705 | 7,145 | 16,791 | — | 9,528 | 7,263 | ||||||||||||||||||||||||
Total Unconsolidated Other Retail Properties | 110,418 | 46 | 48,906 | 61,558 | 109,304 | 1 | 47,354 | 61,951 | ||||||||||||||||||||||||
TOTAL OTHER RETAIL PROPERTIES | $ | 135,610 | $ | 365 | $ | 49,329 | $ | 86,646 | $ | 114,269 | $ | 76 | $ | 47,388 | $ | 66,957 | ||||||||||||||||
Consolidated Properties Under Development | ||||||||||||||||||||||||||||||||
Springhills | $ | — | $ | 19,230 | $ | — | $ | 19,230 | $ | — | $ | 19,230 | $ | — | $ | 19,230 | ||||||||||||||||
White Clay Point | — | 34,786 | — | 34,786 | — | 34,786 | — | 34,786 | ||||||||||||||||||||||||
Total Consolidated Properties Under Development | — | 54,016 | — | 54,016 | — | 54,016 | — | 54,016 | ||||||||||||||||||||||||
Unconsolidated Properties Under Development | ||||||||||||||||||||||||||||||||
Gloucester Premium Outlets | 3,497 | 1,070 | — | 4,567 | — | — | — | — | ||||||||||||||||||||||||
Pavilion at Market East | 6,240 | 784 | 1,974 | 5,050 | 6,240 | 784 | 1,921 | 5,103 | ||||||||||||||||||||||||
Total Unconsolidated Properties Under Development | 9,737 | 1,854 | 1,974 | 9,617 | 6,240 | 784 | 1,921 | 5,103 | ||||||||||||||||||||||||
Other Properties | ||||||||||||||||||||||||||||||||
Land held for development - consolidated | 8,716 | — | — | 8,716 | 8,716 | — | — | 8,716 | ||||||||||||||||||||||||
Total Other Properties | 8,716 | — | — | 8,716 | 8,716 | — | — | 8,716 | ||||||||||||||||||||||||
TOTAL DEVELOPMENT AND OTHER PROPERTIES | $ | 18,453 | $ | 55,870 | $ | 1,974 | $ | 72,349 | $ | 14,956 | $ | 54,800 | $ | 1,921 | $ | 67,835 | ||||||||||||||||
TOTAL INVESTMENT IN REAL ESTATE | $ | 3,668,706 | $ | 87,725 | $ | 1,152,644 | $ | 2,603,787 | $ | 3,677,200 | $ | 69,788 | $ | 1,099,035 | $ | 2,647,953 | ||||||||||||||||
CONSOLIDATED PROPERTIES | $ | 3,445,795 | $ | 85,416 | $ | 1,063,080 | $ | 2,468,131 | $ | 3,459,033 | $ | 68,835 | $ | 1,012,746 | $ | 2,515,122 | ||||||||||||||||
UNCONSOLIDATED PROPERTIES | 222,911 | 2,309 | 89,564 | 135,656 | 218,167 | 953 | 86,289 | 132,831 | ||||||||||||||||||||||||
TOTAL INVESTMENT IN REAL ESTATE | $ | 3,668,706 | $ | 87,725 | $ | 1,152,644 | $ | 2,603,787 | $ | 3,677,200 | $ | 69,788 | $ | 1,099,035 | $ | 2,647,953 |
(1) | Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties. |
(2) | Reflects impairment of $13.9 million recorded in the 2nd Quarter of 2014. |
(3) | Reflects impairment of $6.3 million recorded in the 3rd Quarter of 2013 and $2.2 million recorded in the 2nd Quarter of 2014. |
(4) | Property was sold in June 2014. |
(5) | Consists of two parcels remaining after the sale of the property in 2010. |
(6) | Consists of one parcel remaining after the sale of the property in 2011. |
(7) | Investment in real estate previously combined with South Mall. |
Quarter Ended June 30, 2014 | Six Months Ended June 30, 2014 | |||||||||||||||||||||||
Consolidated | Unconsolidated | Total | Consolidated | Unconsolidated | Total | |||||||||||||||||||
Redevelopment projects with incremental GLA and/or anchor replacement (1) | $ | 19,232 | $ | 230 | $ | 19,462 | $ | 24,411 | $ | 320 | $ | 24,731 | ||||||||||||
New development projects | 231 | 4,567 | 4,798 | 275 | 4,567 | 4,842 | ||||||||||||||||||
Tenant allowances | 8,689 | 79 | 8,768 | 11,158 | 118 | 11,276 | ||||||||||||||||||
Recurring capital expenditures: | ||||||||||||||||||||||||
CAM expenditures | 2,105 | 13 | 2,118 | 2,468 | 24 | 2,492 | ||||||||||||||||||
Non-CAM expenditures | 714 | 6 | 720 | 844 | 5 | 849 | ||||||||||||||||||
Total recurring capital expenditures | 2,819 | 19 | 2,838 | 3,312 | 29 | 3,341 | ||||||||||||||||||
Total | $ | 30,971 | $ | 4,895 | $ | 35,866 | $ | 39,156 | $ | 5,034 | $ | 44,190 |
(1) | Net of any tenant reimbursements, parcel sales, tax credits or other incentives. |
Outstanding Debt | |||||||||||||||||||||
Fixed Rate (1) | % of Total Indebtedness | Variable Rate (2) | % of Total Indebtedness | Total | % of Total Indebtedness | ||||||||||||||||
Consolidated mortgage loans payable | $ | 1,442,957 | 79.3 | % | $ | 51,844 | 2.8 | % | $ | 1,494,801 | 82.1 | % | |||||||||
Unconsolidated mortgage loans payable | 193,155 | 10.6 | % | 3,582 | 0.2 | % | 196,737 | 10.8 | % | ||||||||||||
2014 Term Loans | 130,000 | 7.1 | % | — | — | % | 130,000 | 7.1 | % | ||||||||||||
2013 Revolving Facility | — | — | % | — | — | % | — | — | % | ||||||||||||
TOTAL OUTSTANDING DEBT | $ | 1,766,112 | 97.0 | % | $ | 55,426 | 3.0 | % | $ | 1,821,538 | 100.0 | % | |||||||||
AVERAGE STATED INTEREST RATE | 4.93 | % | 2.30 | % | 4.74 | % |
(1) | Includes variable rate debt swapped to fixed rate debt. |
(2) | In July 2014, the Company repaid the $51.0 million mortgage loan associated with Logan Valley Mall that was to mature in September 2014. |
Average Debt Balance | ||||||||||||||||||
Mortgage Debt | 2013 Revolving Facility | 2014 Term Loans | TOTAL | |||||||||||||||
Beginning Balance | 3/31/2014 | $ | 1,696,420 | $ | 25,000 | $ | 130,000 | $ | 1,851,420 | |||||||||
Mortgage loan amortization | (4,882 | ) | — | — | (4,882 | ) | ||||||||||||
2013 Revolving Facility, net | — | (25,000 | ) | — | (25,000 | ) | ||||||||||||
Ending Balance | 6/30/2014 | $ | 1,691,538 | $ | — | $ | 130,000 | $ | 1,821,538 | |||||||||
Weighted Average Balance | $ | 1,694,700 | $ | 17,418 | $ | 130,000 | $ | 1,842,117 |
Debt Maturities (1) | ||||||||||||||||||||
Year | Scheduled Amortization | Mortgage Balance at Maturity (2) | 2013 Revolving Facility | 2014 Term Loans | Total Debt | |||||||||||||||
2014 | $ | 11,348 | $ | 51,000 | $ | — | $ | — | $ | 62,348 | ||||||||||
2015 | 25,651 | 306,020 | — | — | 331,671 | |||||||||||||||
2016 | 16,325 | 243,745 | — | — | 260,070 | |||||||||||||||
2017 | 15,546 | 153,283 | — | — | 168,829 | |||||||||||||||
2018 | 15,295 | 145,678 | — | — | 160,973 | |||||||||||||||
2019 | 15,601 | 28,050 | — | 100,000 | 143,651 | |||||||||||||||
Thereafter | 40,744 | 623,252 | — | 30,000 | 693,996 | |||||||||||||||
$ | 140,510 | $ | 1,551,028 | $ | — | $ | 130,000 | $ | 1,821,538 |
(1) | The weighted average period to mortgage maturity is 4.99 years, excluding extension options. Includes 100% of mortgage debt from consolidated properties and our share of mortgage debt from unconsolidated properties, based on our ownership percentage. |
(2) | In July 2014, the Company repaid the $51.0 million mortgage loan associated with Logan Valley Mall that was to mature in September 2014. |
Weighted Average Mortgage Interest Rates | |||||||
Year | Balance | Interest Rate | |||||
2014 (1) | $ | 51,000 | 2.25 | % | |||
2015 | 316,483 | 5.69 | % | ||||
2016 | 252,713 | 5.30 | % | ||||
2017 | 153,582 | 5.45 | % | ||||
2018 | 150,242 | 3.83 | % | ||||
Thereafter | 767,518 | 4.60 | % | ||||
Total | $ | 1,691,538 | 4.85 | % |
(1) | In July 2014, the Company repaid the $51.0 million mortgage loan associated with Logan Valley Mall that was to mature in September 2014. |
Debt (1) | Interest Rate | Annual Debt Service | Balance at Maturity | Initial Maturity Date | Fully Extended Maturity Date | ||||||||||||||
Fixed Rate Mortgage Loans | |||||||||||||||||||
Springfield East (2) | $ | 2,102 | 5.39 | % | $ | 92 | $ | 2,061 | Mar 2015 | Mar 2020 | |||||||||
Springfield Park (2) | 2,468 | 5.39 | % | 107 | 2,419 | Mar 2015 | Mar 2020 | ||||||||||||
Magnolia Mall | 56,366 | 5.33 | % | 4,413 | 54,965 | July 2015 | July 2015 | ||||||||||||
Patrick Henry Mall | 86,168 | 6.34 | % | 7,743 | 83,210 | Oct 2015 | Oct 2015 | ||||||||||||
Springfield Mall (2) | 31,604 | 4.77 | % | 2,118 | 30,741 | Nov 2015 | Nov 2015 | ||||||||||||
Willow Grove Park | 137,775 | 5.65 | % | 11,083 | 132,624 | Dec 2015 | Dec 2015 | ||||||||||||
Valley Mall | 81,721 | 5.49 | % | 5,014 | 78,996 | Mar 2016 | Mar 2016 | ||||||||||||
Woodland Mall | 145,148 | 5.58 | % | 10,761 | 140,484 | Apr 2016 | Apr 2016 | ||||||||||||
801 Market Street (2) | 25,000 | 3.20 | % | 1,554 | 24,265 | July 2016 | July 2018 | ||||||||||||
The Mall at Prince Georges | 150,000 | 5.51 | % | 8,269 | 150,000 | June 2017 | June 2017 | ||||||||||||
Francis Scott Key Mall (2) | 62,625 | 3.71 | % | 2,321 | 62,625 | Mar 2018 | Mar 2018 | ||||||||||||
Viewmont Mall (2) | 48,000 | 3.72 | % | 1,786 | 48,000 | Mar 2018 | Mar 2018 | ||||||||||||
Lycoming Mall | 34,412 | 3.72 | % | 3,001 | 30,908 | Mar 2018 | Mar 2018 | ||||||||||||
Whitehall Mall | 5,205 | 7.00 | % | 574 | 4,145 | Nov 2018 | Nov 2018 | ||||||||||||
New River Valley Mall (2)(3) | 28,050 | 4.38 | % | 1,229 | 28,050 | Jan 2019 | Jan 2019 | ||||||||||||
Valley View Mall | 30,425 | 5.95 | % | 2,290 | 27,161 | July 2020 | July 2020 | ||||||||||||
Lehigh Valley Mall | 66,242 | 5.88 | % | 4,972 | 58,519 | July 2020 | July 2020 | ||||||||||||
Red Rose Commons | 14,327 | 5.14 | % | 978 | 12,378 | July 2021 | July 2021 | ||||||||||||
The Court at Oxford Valley | 29,253 | 5.56 | % | 1,668 | 25,782 | July 2021 | July 2021 | ||||||||||||
Capital City Mall | 63,733 | 5.30 | % | 4,379 | 54,715 | Mar 2022 | Mar 2022 | ||||||||||||
Cumberland Mall | 49,877 | 4.40 | % | 3,433 | 38,157 | Aug 2022 | Aug 2022 | ||||||||||||
Cherry Hill Mall (4) | 300,000 | 3.90 | % | 11,700 | 252,568 | Sept 2022 | Sept 2022 | ||||||||||||
Dartmouth Mall | 65,657 | 3.97 | % | 3,825 | 53,299 | Apr 2023 | Apr 2023 | ||||||||||||
Metroplex Shopping Center | 41,954 | 5.00 | % | 2,681 | 33,979 | Oct 2023 | Oct 2023 | ||||||||||||
Wyoming Valley Mall (5) | 78,000 | 5.17 | % | 4,034 | 66,694 | Dec 2023 | Dec 2023 | ||||||||||||
Total Fixed Rate Mortgage Loans | $ | 1,636,112 | 4.93 | % | $ | 100,025 | $ | 1,496,745 | |||||||||||
Variable Rate Mortgage Loans | |||||||||||||||||||
Logan Valley Mall (6) | $ | 51,000 | 2.25 | % | $ | 1,148 | $ | 51,000 | Sept 2014 | Sept 2015 | |||||||||
801 Market Street | 844 | 2.25 | % | — | — | July 2016 | July 2018 | ||||||||||||
Pavilion East Associates | 3,582 | 2.94 | % | 253 | 3,283 | Aug 2017 | Aug 2017 | ||||||||||||
Total Variable Rate Mortgage Loans | 55,426 | 2.30 | % | 1,401 | 54,283 | ||||||||||||||
Total Mortgage Loans | $ | 1,691,538 | 4.85 | % | $ | 101,426 | $ | 1,551,028 | |||||||||||
CONSOLIDATED MORTGAGE LOANS | $ | 1,494,801 | 4.78 | % | $ | 87,983 | $ | 1,377,721 | |||||||||||
UNCONSOLIDATED MORTGAGE LOANS | 196,737 | 5.38 | % | 13,443 | 173,307 | ||||||||||||||
2014 5 YEAR TERM LOAN (2) | 100,000 | 3.24 | % | 3,236 | 100,000 | Jan 2019 | Jan 2019 | ||||||||||||
2014 7 YEAR TERM LOAN (2) | 30,000 | 3.73 | % | 1,118 | 30,000 | Jan 2021 | Jan 2021 | ||||||||||||
2013 REVOLVING FACILITY | — | — | % | — | — | Apr 2016 | Apr 2018 | ||||||||||||
Total | $ | 1,821,538 | 4.74 | % | $ | 105,780 | $ | 1,681,028 | |||||||||||
AMORTIZATION OF DEFERRED FINANCING FEES | — | 0.18 | % | — | — | ||||||||||||||
EFFECTIVE INTEREST RATE | $ | 1,821,538 | 4.92 | % | $ | 105,780 | $ | 1,681,028 |
(1) | Includes 100% of debt from consolidated properties and our share of debt from unconsolidated properties, based on our ownership percentage. |
(2) | All or a portion of the loan has been effectively swapped to the fixed interest rate presented. |
(3) | Payments are of interest only until 2017, then principal and interest at a rate to be determined. |
(4) | Payments are of interest only until October 2014. |
(5) | Payments are of interest only until April 2015. |
(6) | In July 2014, the Company repaid the $51.0 million mortgage loan on this property. |
June 30, 2014 | ||
Consolidated Liabilities to Gross Asset Value | 49.41 | % |
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 60% | ||
Secured Indebtedness to Gross Asset Value | 42.50 | % |
Secured indebtedness to Gross Asset Value may not exceed 60% | ||
Adjusted EBITDA to Fixed Charges | 1.98 | |
Adjusted EBITDA may not be less than 1.45 to 1.00 | ||
Unencumbered Adjusted NOI to Unsecured Interest Expense | 15.87 | |
Unencumbered Adjusted NOI to Unsecured Interest Expense may not be less than 1.75 to 1.00 | ||
Unencumbered Debt Yield | 56.45 | % |
The ratio of Unencumbered Adjusted NOI to Unsecured Debt may not be less than 12% |
(1) | The 2013 Revolving Facility agreement dated as of April 17, 2013, as amended, and the 2014 Term Loan agreements dated as of January 8, 2014 contain identical affirmative and negative covenants customarily found in such agreements, including requirements that the Company, on a consolidated basis, maintain certain financial ratios. All capitalized terms used on this page have the meanings ascribed to such terms in the 2013 Revolving Facility. In addition to the ratios set forth herein, there are several other ratios under the 2013 Revolving Facility and 2014 Term Loans with which the Company must comply, all of which are described in the Company’s Annual Report on Form 10-K dated February 28, 2014. |
• | our substantial debt and stated value of preferred shares and our high leverage ratio; |
• | constraining leverage, interest and tangible net worth covenants under our 2013 Revolving Facility, our 2014 Term Loans and the Letter of Credit; |
• | potential losses on impairment of certain long-lived assets, such as real estate, or of intangible assets, such as goodwill, including such losses that we might be required to record in connection with any dispositions of assets; |
• | changes to our corporate management team and any resulting modifications to our business strategies; |
• | our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; |
• | our ability to raise capital, including through the issuance of equity or equity-related securities if market conditions are favorable, through joint ventures or other partnerships, through sales of properties or interests in properties, or through other actions; |
• | our ability to identify and execute on suitable acquisition opportunities and to integrate acquired properties into our portfolio; |
• | our short and long-term liquidity position; |
• | current economic conditions and their effect on employment and consumer confidence and spending, and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions and on our cash flows, and the value and potential impairment of our properties; |
• | changes in the retail industry, including consolidation and store closings, particularly among anchor tenants; |
• | the effects of online shopping and other uses of technology on our retail tenants; |
• | risks related to development and redevelopment activities; |
• | inability to sell properties that we seek to dispose of and inability to obtain estimated sale prices; |
• | our ability to maintain and increase property occupancy, sales and rental rates, in light of the relatively high number of leases that have expired or are expiring in the next two years; |
• | acts of violence at malls, including our properties, or other similar spaces, and the potential effect on traffic and sales; |
• | increases in operating costs that cannot be passed on to tenants; |
• | concentration of our properties in the Mid-Atlantic region; |
• | changes in local market conditions, such as the supply of or demand for retail space, or other competitive factors; and |
• | potential dilution from any capital raising transactions. |
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