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: February 15, 2018 | By: | /s/ Lisa M. Most | ||
Lisa M. Most | ||||
Senior Vice President and General Counsel |
Table of Contents | |
Introduction | |
Definitions | |
Company Information | |
Trading Information and Common Distributions per common share | |
Market Capitalization | |
Operating Results | |
Statement of Operations - Quarters and Twelve Months Ended December 31, 2017 and December 31, 2016 | |
Computation of Earnings Per Share | |
Net Operating Income - Quarters and Twelve Months Ended December 31, 2017 and December 31, 2016 | |
Reconciliation of Net Income (GAAP Measure) to Net Operating Income from Consolidated Properties (Non-GAAP Measure) - Quarters Ended December 31, 2017 and December 31, 2016 | |
Reconciliation of Equity in Income of Partnerships to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Quarters Ended December 31, 2017 and December 31, 2016 | |
Reconciliation of Net Income (GAAP Measure) to Net Operating Income from Consolidated Properties (Non-GAAP Measure) - Twelve Months Ended December 31, 2017 and December 31, 2016 | |
Reconciliation of Equity in Income of Partnerships to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Twelve Months Ended December 31, 2017 and December 31, 2016 | |
Funds From Operations and Funds Available For Distribution - Quarters and Twelve Months Ended December 31, 2017 and December 31, 2016 | |
Operating Statistics | |
Leasing Activity Summary - Quarter Ended December 31, 2017 | |
Leasing Activity Summary - Twelve Months Ended December 31, 2017 | |
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 | |
Vacant Anchor Summary | |
Balance Sheet | |
Condensed Balance Sheet - Consolidated Balance Sheet | |
Condensed Balance Sheet - Unconsolidated Properties | |
Investment in Real Estate - Consolidated Properties | |
Investment in Real Estate - Equity Method Investments | |
Capital Expenditures | |
Debt Analysis | |
Debt Schedule | |
Selected Debt Ratios | |
Property Redevelopment Table | |
Forward Looking Statements |
Research Coverage | ||||||
Company | Analyst | Phone Number | ||||
Barclays Capital | Ross Smotrich | (212) 526-2306 | ||||
Linda Tsai | (212) 526-9937 | |||||
Boenning & Scattergood, Inc. | Floris Van Dijkum | (212) 209-3916 | ||||
Citi Investment Research | Michael Bilerman | (212) 816-1383 | ||||
Christy McElroy | (212) 816-6981 | |||||
Goldman Sachs & Co. LLC | Caitlin Burrows | (212) 902-4736 | ||||
Green Street Advisors | Daniel J. Busch | (949) 640-8780 | ||||
JP Morgan | Michael W. Mueller | (212) 622-6689 | ||||
Mitsubishi UFJ Securities (USA) | Karin A. Ford | (212) 405-7349 | ||||
Stifel Nicolaus | Jennifer Hummert | (443) 224-1288 | ||||
Simon Yarmack | (443) 224-1345 | |||||
SunTrust Robinson Humphrey | Ki Bin Kim | (212) 303-4124 |
Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2015 | ||||||||||||||||
TRADING INFORMATION | ||||||||||||||||||||
Common Shares | ||||||||||||||||||||
High Price per share | $ | 12.11 | $ | 22.86 | $ | 19.92 | $ | 25.67 | $ | 25.34 | ||||||||||
Low Price per share | $ | 9.32 | $ | 18.12 | $ | 9.32 | $ | 16.42 | $ | 18.65 | ||||||||||
Closing Share Price (at the end of period) | $ | 11.89 | $ | 18.96 | $ | 11.89 | $ | 18.96 | $ | 21.87 | ||||||||||
Series A Preferred Shares(1) | ||||||||||||||||||||
High Price per share | N/A | $ | 25.78 | N/A | $ | 26.80 | $ | 27.62 | ||||||||||||
Low Price per share | N/A | $ | 24.80 | N/A | $ | 24.80 | $ | 24.23 | ||||||||||||
Closing Share Price (at the end of period) | N/A | $ | 25.29 | N/A | $ | 25.29 | $ | 25.81 | ||||||||||||
Series B Preferred Shares | ||||||||||||||||||||
High Price per share | $ | 25.57 | $ | 26.20 | $ | 25.83 | $ | 26.71 | $ | 26.89 | ||||||||||
Low Price per share | $ | 25.00 | $ | 22.46 | $ | 24.83 | $ | 22.46 | $ | 25.09 | ||||||||||
Closing Share Price (at the end of period) | $ | 25.18 | $ | 25.00 | $ | 25.18 | $ | 25.00 | $ | 25.65 | ||||||||||
Series C Preferred Shares | ||||||||||||||||||||
High Price per share | $ | 26.63 | N/A | $ | 25.17 | N/A | N/A | |||||||||||||
Low Price per share | $ | 27.78 | N/A | $ | 24.27 | N/A | N/A | |||||||||||||
Closing Share Price (at the end of period) | $ | 25.90 | N/A | $ | 25.90 | N/A | N/A | |||||||||||||
Series D Preferred Shares | ||||||||||||||||||||
High Price per share | $ | 25.83 | N/A | $ | 24.82 | N/A | N/A | |||||||||||||
Low Price per share | $ | 25.83 | N/A | $ | 24.50 | N/A | N/A | |||||||||||||
Closing Share Price (at the end of period) | $ | 25.11 | N/A | $ | 25.11 | N/A | N/A | |||||||||||||
DISTRIBUTIONS PER COMMON SHARE | ||||||||||||||||||||
Ordinary Dividends | $ | — | $ | — | $ | — | $ | — | $ | 0.11 | ||||||||||
Non-Dividend Distributions | 0.21 | 0.21 | 0.84 | 0.84 | 0.69 | |||||||||||||||
Distributions per common share | $ | 0.21 | $ | 0.21 | $ | 0.84 | $ | 0.84 | $ | 0.80 | ||||||||||
Annualized Dividend Yield (2) | 7.1 | % | 4.4 | % | 7.1 | % | 4.4 | % | 3.8 | % |
Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2015 | ||||||||||||||||
MARKET CAPITALIZATION | ||||||||||||||||||||
EQUITY CAPITALIZATION | ||||||||||||||||||||
Common Shares Outstanding | 69,984 | 69,553 | 69,984 | 69,553 | 69,197 | |||||||||||||||
OP Units Outstanding | 8,272 | 8,313 | 8,272 | 8,313 | 8,338 | |||||||||||||||
Total Common Shares and OP Units Outstanding | 78,256 | 77,866 | 78,256 | 77,866 | 77,535 | |||||||||||||||
Equity Market Capitalization—Common Shares and OP Units | $ | 930,466 | $ | 1,476,339 | $ | 930,466 | $ | 1,476,339 | $ | 1,695,693 | ||||||||||
Series A Preferred Shares, Nominal Value(1) | N/A | 115,000 | N/A | 115,000 | 115,000 | |||||||||||||||
Series B Preferred Shares, Nominal Value | 86,250 | 86,250 | 86,250 | 86,250 | 86,250 | |||||||||||||||
Series C Preferred Shares, Nominal Value | 172,500 | N/A | 172,500 | N/A | N/A | |||||||||||||||
Series D Preferred Shares, Nominal Value | 125,000 | N/A | 125,000 | N/A | N/A | |||||||||||||||
Total Equity Market Capitalization | $ | 1,314,216 | $ | 1,677,589 | $ | 1,314,216 | $ | 1,677,589 | $ | 1,896,943 | ||||||||||
DEBT CAPITALIZATION | ||||||||||||||||||||
Secured Debt Balance (2) | $ | 1,295,112 | $ | 1,428,894 | $ | 1,295,112 | $ | 1,428,894 | $ | 1,588,654 | ||||||||||
Unsecured Debt Balance (3) (4) | 603,000 | 547,000 | 603,000 | 547,000 | 465,000 | |||||||||||||||
Debt Capitalization | 1,898,112 | 1,975,894 | 1,898,112 | 1,975,894 | 2,053,654 | |||||||||||||||
TOTAL MARKET CAPITALIZATION | $ | 3,212,328 | $ | 3,653,483 | $ | 3,212,328 | $ | 3,653,483 | $ | 3,950,597 | ||||||||||
Equity Capitalization/Total Market Capitalization | 40.9 | % | 45.9 | % | 40.9 | % | 45.9 | % | 48.0 | % | ||||||||||
Debt Capitalization/Total Market Capitalization | 59.1 | % | 54.1 | % | 59.1 | % | 54.1 | % | 52.0 | % | ||||||||||
Unsecured Debt Balance/Total Debt | 31.8 | % | 27.7 | % | 31.8 | % | 27.7 | % | 22.6 | % | ||||||||||
CAPITAL RESOURCES | ||||||||||||||||||||
Cash and Cash Equivalents | $ | 27,534 | $ | 21,892 | $ | 27,534 | $ | 21,892 | $ | 37,754 | ||||||||||
Revolving Facility | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | |||||||||||||||
Amount Outstanding | (53,000 | ) | (147,000 | ) | (53,000 | ) | (147,000 | ) | (65,000 | ) | ||||||||||
Letters of Credit | (15,786 | ) | — | (15,786 | ) | — | (7,852 | ) | ||||||||||||
Available Revolving Facility (5) | 331,214 | 253,000 | 331,214 | 253,000 | 327,148 | |||||||||||||||
Term Loans | 550,000 | 550,000 | 550,000 | 550,000 | 400,000 | |||||||||||||||
Amount Borrowed | (550,000 | ) | (400,000 | ) | (550,000 | ) | (400,000 | ) | (400,000 | ) | ||||||||||
Available Term Loans | — | 150,000 | — | 150,000 | — | |||||||||||||||
TOTAL | $ | 358,748 | $ | 424,892 | $ | 358,748 | $ | 424,892 | $ | 364,902 | ||||||||||
Shelf Registration | $ | 1,000,000 | $ | 1,000,000 | $ | 1,000,000 | $ | 1,000,000 | $ | 1,000,000 |
(1) | The Series A Preferred Shares were redeemed on October 12, 2017 and are no longer outstanding. |
(2) | Includes our share of debt from equity method investments. |
(3) | The unsecured debt balance includes a Revolving Facility balance of $53,000 as of December 31, 2017, $147,000 as of December 31, 2016 and $65,000 as of December 31, 2015 |
(4) | The unsecured debt balance includes a Term Loan balance of $550,000 as of December 31, 2017, $400,000 as of December 31, 2016 and $400,000 as of December 31, 2015. |
(5) | The available Credit Facility borrowings are subject to covenants that may restrict amounts that can be borrowed. Following recent property sales, the NOI from the Company’s remaining unencumbered properties is at a level such that the maximum unsecured amount that the Company may borrow as of December 31, 2017 within the Unencumbered Debt Yield covenant, including under the $400.0 million 2013 Revolving Facility is an aggregate of $144.5 million. |
Quarter Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
REVENUE: | ||||||||||||||||
Base rent | $ | 59,820 | $ | 63,690 | $ | 230,898 | $ | 252,115 | ||||||||
Expense reimbursements | 27,473 | 29,817 | 109,454 | 118,880 | ||||||||||||
Percentage rent | 3,143 | 3,585 | 4,366 | 5,245 | ||||||||||||
Lease termination revenue | 481 | 1,197 | 2,760 | 4,460 | ||||||||||||
Other real estate revenue | 7,054 | 5,853 | 14,046 | 13,897 | ||||||||||||
Total real estate revenue | 97,971 | 104,142 | 361,524 | 394,597 | ||||||||||||
Other income | 1,794 | 719 | 5,966 | 5,349 | ||||||||||||
Total revenue | 99,765 | 104,861 | 367,490 | 399,946 | ||||||||||||
EXPENSES: | ||||||||||||||||
Operating expenses: | ||||||||||||||||
Property operating expenses: | ||||||||||||||||
CAM and real estate taxes | (27,289 | ) | (30,633 | ) | (111,275 | ) | (124,690 | ) | ||||||||
Utilities | (3,745 | ) | (3,837 | ) | (16,151 | ) | (17,053 | ) | ||||||||
Other property operating expenses | (3,761 | ) | (3,857 | ) | (12,879 | ) | (14,475 | ) | ||||||||
Total property operating expenses | (34,795 | ) | (38,327 | ) | (140,305 | ) | (156,218 | ) | ||||||||
Depreciation and amortization | (34,169 | ) | (34,452 | ) | (128,822 | ) | (126,669 | ) | ||||||||
General and administrative expenses | (10,175 | ) | (9,556 | ) | (36,736 | ) | (35,269 | ) | ||||||||
Provision for employee separation expense | (246 | ) | — | (1,299 | ) | (1,355 | ) | |||||||||
Acquisition costs and other expenses | (223 | ) | (325 | ) | (768 | ) | (1,700 | ) | ||||||||
Total operating expenses | (79,608 | ) | (82,660 | ) | (307,930 | ) | (321,211 | ) | ||||||||
Interest expense, net (1) | (14,332 | ) | (17,113 | ) | (58,430 | ) | (70,724 | ) | ||||||||
Impairment of assets | (51 | ) | (38,014 | ) | (55,793 | ) | (62,603 | ) | ||||||||
Total expenses | (93,991 | ) | (137,787 | ) | (422,153 | ) | (454,538 | ) | ||||||||
Income (loss) before equity in income of partnerships and gains on sales interests in real estate and non operating real estate | 5,774 | (32,926 | ) | (54,663 | ) | (54,592 | ) | |||||||||
Equity in income of partnerships | 2,223 | 5,759 | 14,367 | 18,477 | ||||||||||||
(Adjustment to gain) gain on sales by equity method investee | (174 | ) | — | 6,539 | — | |||||||||||
Gain (Loss) on sales of interests in real estate, net | 8 | 69 | (361 | ) | 23,022 | |||||||||||
Gain on sale of interest in non operating real estate | 784 | 371 | 1,270 | 380 | ||||||||||||
Net income (loss) | 8,615 | (26,727 | ) | (32,848 | ) | (12,713 | ) | |||||||||
Less: net income attributed to noncontrolling interest | (912 | ) | 2,867 | 3,504 | 1,365 | |||||||||||
Net income (loss) attributable to PREIT | 7,703 | (23,860 | ) | (29,344 | ) | (11,348 | ) | |||||||||
Less: preferred share dividends | (7,048 | ) | (3,962 | ) | (27,845 | ) | (15,848 | ) | ||||||||
Less: loss on redemption of preferred shares | (4,103 | ) | — | (4,103 | ) | — | ||||||||||
Net loss attributable to PREIT common shareholders | $ | (3,448 | ) | $ | (27,822 | ) | $ | (61,292 | ) | $ | (27,196 | ) |
(1) | Net of capitalized interest expense of $2,159 and $970 for the quarters ended December 31, 2017 and 2016, respectively, and $7,620 and $3,191 for the twelve months ended December 31, 2017 and 2016, respectively. |
Quarter Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net loss | $ | 8,615 | $ | (26,727 | ) | $ | (32,848 | ) | $ | (12,713 | ) | |||||
Noncontrolling interest | (912 | ) | 2,867 | 3,504 | 1,365 | |||||||||||
Loss on redemption of preferred shares | (4,103 | ) | — | (4,103 | ) | — | ||||||||||
Dividends on preferred shares | (7,048 | ) | (3,962 | ) | (27,845 | ) | (15,848 | ) | ||||||||
Dividends on unvested restricted shares | (100 | ) | (81 | ) | (372 | ) | (322 | ) | ||||||||
Net loss used to calculate loss per share - basic and diluted | $ | (3,548 | ) | $ | (27,903 | ) | $ | (61,664 | ) | $ | (27,518 | ) | ||||
Basic loss per share: | $ | (0.05 | ) | $ | (0.40 | ) | $ | (0.89 | ) | $ | (0.40 | ) | ||||
Diluted loss per share: | $ | (0.05 | ) | $ | (0.40 | ) | $ | (0.89 | ) | $ | (0.40 | ) | ||||
Weighted average shares outstanding - basic | 69,496 | 69,152 | 69,364 | 69,086 | ||||||||||||
Weighted average effect of common share equivalents (1) | — | — | — | — | ||||||||||||
Total weighted average shares outstanding - diluted | 69,496 | 69,152 | 69,364 | 69,086 |
(1) | There were no common share equivalents for the the three months ended December 31, 2017. The Company had net losses used to calculate earnings per share for the quarters ended December 31, 2017 and 2016, and the years ended December 31, 2017 and 2016. Therefore, the effect of common share equivalents of 127 for the quarter ended December 31, 2016, and 93 and 191 for the years ended December 31, 2017 and 2016, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive. |
Quarter Ended December 31, | ||||||||||||||||||||||||||
Same Store | % Change 2016 to 2017 | Non Same Store | Total | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||
NOI from consolidated properties | $ | 62,662 | $ | 60,930 | 2.8 | % | $ | 514 | $ | 4,885 | $ | 63,176 | $ | 65,815 | ||||||||||||
NOI attributable to equity method investments, at ownership share | 7,926 | 9,046 | (12.4 | )% | 533 | 1,914 | 8,459 | 10,960 | ||||||||||||||||||
Total NOI | $ | 70,588 | $ | 69,976 | 0.9 | % | $ | 1,047 | $ | 6,799 | $ | 71,635 | $ | 76,775 | ||||||||||||
Less: lease termination revenue | (513 | ) | (1,961 | ) | (73.8 | )% | — | (73 | ) | (527 | ) | (2,034 | ) | |||||||||||||
Total NOI - excluding lease termination revenue | $ | 70,075 | $ | 68,015 | 3.0 | % | $ | 1,047 | $ | 6,726 | $ | 71,108 | $ | 74,741 |
Twelve months ended December 31, | ||||||||||||||||||||||||||
Same Store | % Change 2016 to 2017 | Non Same Store | Total | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||
NOI from consolidated properties | $ | 216,403 | $ | 215,321 | 0.5 | % | $ | 4,816 | $ | 23,058 | $ | 221,219 | $ | 238,379 | ||||||||||||
NOI attributable to equity method investments, at ownership share | 30,266 | 32,579 | (7.1 | )% | 6,494 | 6,418 | 36,760 | 38,997 | ||||||||||||||||||
Total NOI | $ | 246,669 | $ | 247,900 | (0.5 | )% | $ | 11,310 | $ | 29,476 | $ | 257,979 | $ | 277,376 | ||||||||||||
Less: lease termination revenue | (3,142 | ) | (6,009 | ) | (47.7 | )% | (85 | ) | (183 | ) | (3,227 | ) | (6,192 | ) | ||||||||||||
Total NOI - excluding lease termination revenue | $ | 243,527 | $ | 241,891 | 0.7 | % | $ | 11,225 | $ | 29,293 | $ | 254,752 | $ | 271,184 |
2017 | 2016 | |||||||
Net income (loss) | $ | 8,615 | $ | (26,727 | ) | |||
Other income | (1,794 | ) | (719 | ) | ||||
Depreciation and amortization | 34,169 | 34,452 | ||||||
General and administrative expenses | 10,175 | 9,556 | ||||||
Provision for employee separation expense | 246 | — | ||||||
Project costs and other expenses | 223 | 325 | ||||||
Interest expense, net | 14,332 | 17,113 | ||||||
Impairment of assets | 51 | 38,014 | ||||||
Equity in income of partnerships | (2,223 | ) | (5,759 | ) | ||||
Adjustment to gain on sales by equity method investee | 174 | — | ||||||
Gains on sales of interests in real estate | (8 | ) | (69 | ) | ||||
Gains on sales of non operating real estate | (784 | ) | (371 | ) | ||||
NOI from consolidated properties (Non-GAAP) | $ | 63,176 | $ | 65,815 |
Same Store | Non Same Store | Total | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Real estate revenue | ||||||||||||||||||||||||
Base rent | $ | 59,500 | $ | 57,919 | $ | 320 | $ | 5,771 | $ | 59,820 | $ | 63,690 | ||||||||||||
Expense reimbursements | 27,438 | 28,387 | 35 | 1,430 | 27,473 | 29,817 | ||||||||||||||||||
Percentage rent | 3,143 | 3,242 | — | 343 | 3,143 | 3,585 | ||||||||||||||||||
Lease termination revenue | 467 | 1,124 | 14 | 73 | 481 | 1,197 | ||||||||||||||||||
Other real estate revenue | 6,767 | 5,123 | 287 | 730 | 7,054 | 5,853 | ||||||||||||||||||
Total real estate revenue | 97,315 | 95,795 | 656 | 8,347 | 97,971 | 104,142 | ||||||||||||||||||
Property operating expenses | ||||||||||||||||||||||||
CAM and real estate taxes | (27,135 | ) | (27,956 | ) | (154 | ) | (2,677 | ) | (27,289 | ) | (30,633 | ) | ||||||||||||
Utilities | (3,748 | ) | (3,699 | ) | 3 | (138 | ) | (3,745 | ) | (3,837 | ) | |||||||||||||
Other property operating expenses | (3,770 | ) | (3,210 | ) | 9 | (647 | ) | (3,761 | ) | (3,857 | ) | |||||||||||||
Total property operating expenses | (34,653 | ) | (34,865 | ) | (142 | ) | (3,462 | ) | (34,795 | ) | (38,327 | ) | ||||||||||||
NOI from consolidated properties (Non-GAAP) | 62,662 | 60,930 | 514 | 4,885 | 63,176 | 65,815 | ||||||||||||||||||
Less: Lease termination revenue | (467 | ) | (1,124 | ) | (14 | ) | (73 | ) | (481 | ) | (1,197 | ) | ||||||||||||
NOI from consolidated properties less lease termination revenue (Non-GAAP) | $ | 62,195 | $ | 59,806 | $ | 500 | $ | 4,812 | $ | 62,695 | $ | 64,618 |
2017 | 2016 | |||||||
Equity in income of partnerships | $ | 2,223 | $ | 5,759 | ||||
Other income | (574 | ) | — | |||||
Depreciation and amortization | 2,481 | 2,624 | ||||||
Interest expense and other expenses, net | 4,329 | 2,577 | ||||||
NOI from equity method investments at ownership share (Non-GAAP) | $ | 8,459 | $ | 10,960 |
Same Store | Non Same Store | Total | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Real estate revenue | ||||||||||||||||||||||||
Base rent | $ | 7,098 | $ | 7,213 | $ | 736 | $ | 1,598 | $ | 7,834 | $ | 8,811 | ||||||||||||
Expense reimbursements | 3,047 | 3,332 | 265 | 972 | 3,312 | 4,304 | ||||||||||||||||||
Percentage rent | 160 | 200 | 31 | 22 | 191 | 222 | ||||||||||||||||||
Lease termination revenue | 46 | 837 | — | — | 46 | 837 | ||||||||||||||||||
Other real estate revenue | 431 | 416 | 194 | 194 | 625 | 610 | ||||||||||||||||||
Total real estate revenue | 10,782 | 11,998 | 1,226 | 2,786 | 12,008 | 14,784 | ||||||||||||||||||
Property operating expenses | ||||||||||||||||||||||||
CAM and real estate taxes | (2,195 | ) | (2,082 | ) | (596 | ) | (669 | ) | (2,791 | ) | (2,751 | ) | ||||||||||||
Utilities | (161 | ) | (190 | ) | (107 | ) | (120 | ) | (268 | ) | (310 | ) | ||||||||||||
Other property operating expenses | (500 | ) | (680 | ) | 10 | (83 | ) | (490 | ) | (763 | ) | |||||||||||||
Total property operating expenses | (2,856 | ) | (2,952 | ) | (693 | ) | (872 | ) | (3,549 | ) | (3,824 | ) | ||||||||||||
NOI from equity method investments at ownership share (Non-GAAP) | 7,926 | 9,046 | 533 | 1,914 | 8,459 | 10,960 | ||||||||||||||||||
Less: Lease termination revenue | (46 | ) | (837 | ) | — | — | (46 | ) | (837 | ) | ||||||||||||||
NOI from equity method investments at ownership share excluding lease termination revenue (Non-GAAP) | $ | 7,880 | $ | 8,209 | $ | 533 | $ | 1,914 | $ | 8,413 | $ | 10,123 |
Twelve Months Ended December 31, | |||||||
2017 | 2016 | ||||||
Net loss | $ | (32,848 | ) | $ | (12,713 | ) | |
Other income | (5,966 | ) | (5,349 | ) | |||
Depreciation and amortization | 128,822 | 126,669 | |||||
General and administrative expenses | 36,736 | 35,269 | |||||
Employee separation expenses | 1,299 | 1,355 | |||||
Project costs and other expenses | 768 | 1,700 | |||||
Interest expense | 58,430 | 70,724 | |||||
Impairment of assets | 55,793 | 62,603 | |||||
Equity in income of partnerships | (14,367 | ) | (18,477 | ) | |||
Gain on sale of real estate by equity method investee | (6,539 | ) | — | ||||
Gain (Loss) on sales of interests in real estate, net | 361 | (23,022 | ) | ||||
Gains on sales of non operating real estate | (1,270 | ) | (380 | ) | |||
NOI - consolidated properties (Non-GAAP) | $ | 221,219 | $ | 238,379 |
Same Store | Non Same Store | Total | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Real estate revenue | ||||||||||||||||||||||||
Base rent | $ | 223,859 | $ | 220,850 | $ | 7,039 | $ | 31,265 | $ | 230,898 | $ | 252,115 | ||||||||||||
Expense reimbursements | 107,520 | 111,043 | 1,934 | 7,837 | 109,454 | 118,880 | ||||||||||||||||||
Percentage rent | 4,198 | 4,788 | 168 | 457 | 4,366 | 5,245 | ||||||||||||||||||
Lease termination revenue | 2,675 | 4,277 | 85 | 183 | 2,760 | 4,460 | ||||||||||||||||||
Other real estate revenue | 13,324 | 11,062 | 722 | 2,835 | 14,046 | 13,897 | ||||||||||||||||||
Total real estate revenue | 351,576 | 352,020 | 9,948 | 42,577 | 361,524 | 394,597 | ||||||||||||||||||
Property operating expenses | ||||||||||||||||||||||||
CAM and real estate taxes | (107,174 | ) | (109,147 | ) | (4,101 | ) | (15,543 | ) | (111,275 | ) | (124,690 | ) | ||||||||||||
Utilities | (15,786 | ) | (16,096 | ) | (365 | ) | (957 | ) | (16,151 | ) | (17,053 | ) | ||||||||||||
Other property operating expenses | (12,213 | ) | (11,456 | ) | (666 | ) | (3,019 | ) | (12,879 | ) | (14,475 | ) | ||||||||||||
Total property operating expenses | (135,173 | ) | (136,699 | ) | (5,132 | ) | (19,519 | ) | (140,305 | ) | (156,218 | ) | ||||||||||||
NOI from consolidated properties (Non-GAAP) | 216,403 | 215,321 | 4,816 | 23,058 | 221,219 | 238,379 | ||||||||||||||||||
Less: Lease termination revenue | (2,675 | ) | (4,277 | ) | (85 | ) | (183 | ) | (2,760 | ) | (4,460 | ) | ||||||||||||
NOI from consolidated properties less lease termination revenue (Non-GAAP) | $ | 213,728 | $ | 211,044 | $ | 4,731 | $ | 22,875 | $ | 218,459 | $ | 233,919 |
2017 | 2016 | |||||||
Equity in income of partnerships | $ | 14,367 | $ | 18,477 | ||||
Other income | (594 | ) | — | |||||
Depreciation and amortization | 10,974 | 10,214 | ||||||
Interest expense and other expenses, net | 12,013 | 10,306 | ||||||
NOI from equity method investments at ownership share (Non-GAAP) | $ | 36,760 | $ | 38,997 |
Same Store | Non Same Store | Total | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Real estate revenue | ||||||||||||||||||||||||
Base rent | $ | 27,504 | $ | 28,053 | $ | 7,218 | $ | 6,873 | $ | 34,722 | $ | 34,926 | ||||||||||||
Expense reimbursements | 12,291 | 12,673 | 1,854 | 2,700 | 14,145 | 15,373 | ||||||||||||||||||
Percentage rent | 344 | 392 | 32 | 37 | 376 | 429 | ||||||||||||||||||
Lease termination revenue | 467 | 1,732 | — | — | 467 | 1,732 | ||||||||||||||||||
Other real estate revenue | 1,157 | 1,125 | 761 | 670 | 1,918 | 1,795 | ||||||||||||||||||
Total real estate revenue | 41,763 | 43,975 | 9,865 | 10,280 | 51,628 | 54,255 | ||||||||||||||||||
Property operating expenses | ||||||||||||||||||||||||
CAM and real estate taxes | (8,435 | ) | (8,183 | ) | (2,810 | ) | (3,150 | ) | (11,245 | ) | (11,333 | ) | ||||||||||||
Utilities | (791 | ) | (817 | ) | (466 | ) | (579 | ) | (1,257 | ) | (1,396 | ) | ||||||||||||
Other property operating expenses | (2,271 | ) | (2,396 | ) | (95 | ) | (133 | ) | (2,366 | ) | (2,529 | ) | ||||||||||||
Total property operating expenses | (11,497 | ) | (11,396 | ) | (3,371 | ) | (3,862 | ) | (14,868 | ) | (15,258 | ) | ||||||||||||
NOI from equity method investments at ownership share (Non-GAAP) | 30,266 | 32,579 | 6,494 | 6,418 | 36,760 | 38,997 | ||||||||||||||||||
Less: Lease termination revenue | (467 | ) | (1,732 | ) | — | — | (467 | ) | (1,732 | ) | ||||||||||||||
NOI from equity method investments at ownership share excluding lease termination revenue (Non-GAAP) | $ | 29,799 | $ | 30,847 | $ | 6,494 | $ | 6,418 | $ | 36,293 | $ | 37,265 |
Quarter Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
(in thousands, except per share amounts) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net income (loss) | $ | 8,615 | $ | (26,727 | ) | $ | (32,848 | ) | $ | (12,713 | ) | ||||
Depreciation and amortization on real estate | |||||||||||||||
Consolidated properties | 33,797 | 34,083 | 127,327 | 125,192 | |||||||||||
PREIT's share of equity method investments | 2,481 | 2,624 | 10,974 | 10,214 | |||||||||||
Adjustment to gains (gains on sales of real estate by equity method investee) | 174 | — | (6,539 | ) | — | ||||||||||
(Gains) adjustment to gains on sales of interests in real estate | (8 | ) | (69 | ) | 361 | (23,022 | ) | ||||||||
Impairment of assets | 51 | 38,014 | 55,793 | 62,603 | |||||||||||
Dividends on preferred shares | (7,048 | ) | (3,962 | ) | (27,845 | ) | (15,848 | ) | |||||||
Loss on redemption of preferred shares | (4,103 | ) | — | (4,103 | ) | — | |||||||||
Funds from operations attributable to common shareholders and OP Unit holders | $ | 33,959 | $ | 43,963 | $ | 123,120 | $ | 146,426 | |||||||
Loss on redemption of preferred shares | 4,103 | — | 4,103 | — | |||||||||||
Provision for employee separation expense | 246 | — | 1,299 | 1,355 | |||||||||||
Prepayment penalties and accelerated amortization of financing costs | 1,557 | — | 1,557 | — | |||||||||||
Loss on hedge ineffectiveness | — | — | — | 143 | |||||||||||
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders | $ | 39,865 | $ | 43,963 | $ | 130,079 | $ | 147,924 | |||||||
Funds available for distribution | |||||||||||||||
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders | $ | 39,865 | $ | 43,963 | $ | 130,079 | $ | 147,924 | |||||||
Adjustments: | |||||||||||||||
Straight line rent | $ | (889 | ) | $ | (732 | ) | $ | (2,839 | ) | $ | (2,909 | ) | |||
Recurring capital expenditures | (9,828 | ) | (9,850 | ) | (26,493 | ) | (20,618 | ) | |||||||
Tenant allowances | (6,795 | ) | (7,978 | ) | (20,574 | ) | (31,024 | ) | |||||||
Capitalized leasing costs | (1,433 | ) | (1,707 | ) | (6,066 | ) | (6,101 | ) | |||||||
Amortization of above- and below-market lease intangibles | (39 | ) | (55 | ) | (2,386 | ) | (606 | ) | |||||||
Funds available for distribution to common shareholders and OP Unit holders | $ | 20,881 | 23,641 | 71,721 | 86,666 | ||||||||||
Funds from operations attributable to common shareholders and OP Unit holders per diluted share and OP Unit | $ | 0.44 | $ | 0.57 | $ | 1.58 | $ | 1.89 | |||||||
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit | $ | 0.51 | $ | 0.57 | $ | 1.67 | $ | 1.91 | |||||||
Funds available for distribution to common shareholders and OP Unit holders per diluted share and OP Unit | $ | 0.27 | $ | 0.30 | $ | 0.92 | $ | 1.12 | |||||||
PAYOUT RATIOS (1) | |||||||||||||||
Payout ratio of funds from operations attributable to common shareholders and OP Unit holders | 53.2 | % | 44.4 | % | |||||||||||
Payout ratio of funds from operations attributable to common shareholders and OP Unit holders, as adjusted | 50.3 | % | 43.3 | % | |||||||||||
Payout ratio of funds available for distribution attributable to common shareholders and OP Unit holders | 91.1 | % | 77.8 | % | |||||||||||
Weighted average number of shares outstanding | 69,496 | 69,152 | 69,364 | 69,086 | |||||||||||
Weighted average effect of full conversion of OP Units | 8,278 | 8,313 | 8,297 | 8,324 | |||||||||||
Effect of common share equivalents | — | 127 | 93 | 191 | |||||||||||
Total weighted average shares outstanding, including OP Units | 77,774 | 77,592 | 77,754 | 77,601 |
(1) | Twelve months ended December 31, 2017 and December 31, 2016, respectively. |
Initial Gross Rent Spread (1) | Avg Rent Spread (2) | Annualized Tenant Improvements psf (3) | |||||||||||||||||||||||||||
Number | GLA | Term | Initial Rent psf | Prev Rent psf | $ | % | % | ||||||||||||||||||||||
Non Anchor | |||||||||||||||||||||||||||||
New Leases | |||||||||||||||||||||||||||||
Under 10k sf | 26 | 41,212 | 6.2 | $ | 52.17 | N/A | N/A | N/A | N/A | $ | 13.54 | ||||||||||||||||||
Over 10k sf | 4 | 161,291 | 11.3 | 11.74 | N/A | N/A | N/A | N/A | 1.36 | ||||||||||||||||||||
Total New Leases | 30 | 202,503 | 10.3 | $ | 19.97 | N/A | N/A | N/A | N/A | $ | 3.84 | ||||||||||||||||||
Renewal Leases | |||||||||||||||||||||||||||||
Under 10k sf | 39 | 71,846 | 3.7 | 74.18 | 69.19 | 4.99 | 7.2% | 10.8% | $ | 0.83 | |||||||||||||||||||
Over 10k sf | 1 | 17,428 | 2.0 | 14.00 | 14.00 | — | 0.00 % | 0.00 % | — | ||||||||||||||||||||
Total Fixed Rent | 40 | 89,274 | 3.4 | $ | 62.43 | $ | 58.42 | $ | 4.02 | 6.9% | 10.2% | $ | 0.67 | ||||||||||||||||
Percentage in Lieu | 12 | 76,966 | 2.0 | 17.85 | 26.00 | (8.15 | ) | (31.3)% | N/A | — | |||||||||||||||||||
Total Renewal Leases | 52 | 166,240 | 2.7 | $ | 41.79 | $ | 43.41 | $ | (1.62 | ) | (3.7)% | 10.2% | $ | 0.51 | |||||||||||||||
Total Non Anchor (4)(5) | 82 | 368,743 | 6.9 | $ | 29.81 | ||||||||||||||||||||||||
Anchor | |||||||||||||||||||||||||||||
New Leases | — | — | — | $ | — | N/A | N/A | N/A | N/A | $ | — | ||||||||||||||||||
Renewal Leases | 1 | 135,186 | 5.0 | $ | 5.84 | $ | 5.84 | $ | — | 0.00 % | N/A | $ | — | ||||||||||||||||
Total | 1 | 135,186 | 5.0 | $ | 5.84 |
(1) | Initial renewal spread is computed by comparing the initial rent psf in the new lease to the final rent psf amount in the expiring lease. For purposes of this computation, the rent amount includes minimum rent, CAM charges, estimated real estate tax reimbursements and marketing charges, but excludes percentage rent. In certain cases, a lower rent amount may be payable for a period of time until specified conditions in the lease are satisfied. |
(2) | Average renewal spread is computed by comparing the average rent psf over the new lease term to the final rent psf amount in the expiring lease. For purposes of this computation, the rent amount includes minimum rent and fixed CAM charges, but excludes pro rata CAM charges, estimated real estate tax reimbursements, marketing charges and percentage rent. |
(3) | These leasing costs are presented as annualized costs per square foot and are spread uniformly over the initial lease term. |
(4) | Includes 10 leases and 18,744 square feet of GLA with respect to our unconsolidated partnerships. Excluding these leases, the initial gross rent spread was 7.8% for leases under 10,000 square feet and (5.1)% for all non anchor leases. Excluding these leases, the average rent spread was 10.8% for leases under 10,000 square feet and 10.1% for all non anchor leases. |
(5) | Includes 3 leases totaling 5,490 square feet with respect to tenants whose leases were restructured and extended following a bankruptcy filing. Excluding these leases, the initial gross rent spread was 7.8% for leases under 10,000 square feet and (4.1)% for all non-anchor leases. Excluding these leases, the average rent spreads were 11.4% for leases under 10,000 square feet and 10.7% for all non-anchor leases. |
Initial Gross Rent Spread (1) | Avg Rent Spread (2) | Annualized Tenant Improvements psf (3) | ||||||||||||||||||||||||||||
Number | GLA | Term | Initial Rent psf | Prev Rent psf | $ | % | % | |||||||||||||||||||||||
Non Anchor | ||||||||||||||||||||||||||||||
New Leases | ||||||||||||||||||||||||||||||
Under 10k sf | 150 | 283,036 | 6.6 | $ | 48.02 | N/A | N/A | N/A | N/A | $ | 8.23 | |||||||||||||||||||
Over 10k sf | 20 | 464,204 | 10.2 | 15.17 | N/A | N/A | N/A | N/A | 5.61 | |||||||||||||||||||||
Total New Leases | 170 | 747,240 | 8.8 | $ | 27.61 | N/A | N/A | N/A | N/A | $ | 6.60 | |||||||||||||||||||
Renewal Leases | ||||||||||||||||||||||||||||||
Under 10k sf | 242 | 475,599 | 3.7 | $ | 62.64 | $ | 61.47 | $ | 1.17 | 1.9% | 5.1% | $ | 0.18 | |||||||||||||||||
Over 10k sf | 16 | 336,453 | 3.3 | 16.49 | 17.14 | (0.65 | ) | (3.8)% | 0.9% | — | ||||||||||||||||||||
Total Fixed Rent | 258 | 812,052 | 3.5 | $ | 43.52 | $ | 43.10 | $ | 0.42 | 1.0% | 4.4% | $ | 0.11 | |||||||||||||||||
Percentage in Lieu | 15 | 91,809 | 1.9 | 15.86 | 22.69 | 22.69 | (6.83 | ) | (30.1)% | N/A | — | |||||||||||||||||||
Total Renewal Leases | 273 | 903,861 | 3.4 | $ | 40.71 | $ | 41.03 | $ | (0.32 | ) | (0.8)% | 4.4% | $ | 0.10 | ||||||||||||||||
Total Non Anchor (4)(5) | 443 | 1,651,101 | 5.8 | $ | 34.78 | |||||||||||||||||||||||||
Anchor | ||||||||||||||||||||||||||||||
New Leases | 5 | 349,972 | 11.0 | $ | 7.70 | N/A | N/A | N/A | N/A | $ | 1.38 | |||||||||||||||||||
Renewal Leases | 8 | 1,071,158 | 7.1 | $ | 5.31 | $ | 5.28 | $ | 0.03 | 0.6% | N/A | $ | — | |||||||||||||||||
Total(5) | 13 | 1,421,130 | 8.1 | $ | 5.90 |
(1) | Initial renewal spread is computed by comparing the initial rent psf in the new lease to the final rent psf amount in the expiring lease. For purposes of this computation, the rent amount includes minimum rent, CAM charges, estimated real estate tax reimbursements and marketing charges, but excludes percentage rent. In certain cases, a lower rent amount may be payable for a period of time until specified conditions in the lease are satisfied. |
(2) | Average renewal spread is computed by comparing the average rent psf over the new lease term to the final rent psf amount in the expiring lease. For purposes of this computation, the rent amount includes minimum rent and fixed CAM charges, but excludes pro rata CAM charges, estimated real estate tax reimbursements, marketing charges and percentage rent. |
(3) | These leasing costs are presented as annualized costs per square foot and are spread uniformly over the initial lease term. |
(4) | Includes 41 leases and 188,624 square feet of GLA with respect to our unconsolidated partnerships. Excluding these leases, the initial gross rent spread was 3.2% for leases under 10,000 square feet and 1.0% for all non anchor leases. Excluding these leases, the average rent spread was 6.3% for leases under 10,000 square feet and 6.6% for all non anchor leases. |
(5) | Includes 19 leases totaling 51,697 square feet with respect to tenants whose leases were restructured and extended following a bankruptcy filing. Excluding these leases, the initial gross rent spread was 2.4% for leases under 10,000 square feet and (0.6)% for all non-anchor leases. Excluding these leases, the average rent spread was 5.2% for leases under 10,000 square feet and 4.5% for all non-anchor leases. |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||
% Rolling 12 Mo. NOI | Avg. Comp Sales | Avg. Gross Rent(1)(2) | Occ. Cost | Actual Occupancy | Leased Occupancy | % Rolling 12 Mo. NOI | Avg. Comp Sales | Avg. Gross Rent(1)(2) | Occ. Cost | Occupancy | |||||||||||||||||||||||||||||||||||
Total | Non-Anchor | Total | Non-Anchor | Total | Non-Anchor | ||||||||||||||||||||||||||||||||||||||||
Malls | 90.6 | % | $ | 475 | $ | 59.56 | 13.3 | % | 95.9 | % | 93.8 | % | 96.6 | % | 94.9 | % | 84.3 | % | $ | 470 | $ | 58.73 | 13.0 | % | 95.9 | % | 93.7 | % | |||||||||||||||||
Mall Sold(3) | 1.6 | % | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 2.7 | % | $ | 321 | $ | 37.48 | 12.1 | % | 97.3 | % | 93.5 | % | ||||||||||||||||||||||||
Other Retail Properties | 5.1 | % | N/A | $ | 26.37 | N/A | 91.1 | % | 90.4 | % | 91.1 | % | 90.4 | % | 5.1 | % | N/A | $ | 26.35 | N/A | 93.2 | % | 92.7 | % | |||||||||||||||||||||
Total Retail Properties | 97.2 | % | N/A | $ | 51.27 | N/A | 95.4 | % | 93.3 | % | 96.0 | % | 94.2 | % | 92.0 | % | N/A | $ | 50.27 | N/A | 95.7 | % | 93.6 | % | |||||||||||||||||||||
Other Properties (4) | 2.8 | % | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 8.0 | % | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Total Portfolio | 100.0 | % | $ | 475 | $ | 51.27 | 95.4 | % | 93.3 | % | 96.0 | % | 94.2 | % | 100.0 | % | $ | 464 | $ | 50.27 | 95.7 | % | 93.6 | % |
(1) | Average gross rent for malls includes all non-anchor space owned by the Company and leased to tenants that occupy individual spaces of less than 10,000 square feet. 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 $21.75 per square foot as of December 31, 2017 and $20.60 per square foot as of December 31, 2016. |
(3) | Mall sold is Logan Valley Mall and excludes properties held for sale as of December 31, 2016. |
(4) | Operating metrics for Fashion District Philadelphia as of December 31, 2017 and 2016, respectively, are excluded because the property is under redevelopment. |
December 31, 2017 | December 31, 2016 | Change | ||||||||||||||||||||||||||||||
% of 4 Qtr Trailing NOI | Avg Comp Sales (1)(2) | Total Occ % (2) | Non Anchor Occup. % (2) | Avg Comp Sales (1)(2) | Total Occ % (2) | Non Anchor Occup. % (2) | Avg Comp Sales (1)(2) | Total Occ % (2) | Non Anchor Occup. % (2) | |||||||||||||||||||||||
Top 5 Malls | ||||||||||||||||||||||||||||||||
Willow Grove Park | $ | 673 | 97.3 | % | 94.6 | % | $ | 632 | 97.2 | % | 94.4 | % | 6.5 | % | 0.1 | % | 0.2 | % | ||||||||||||||
Cherry Hill Mall | 652 | 96.4 | % | 95.6 | % | 658 | 94.9 | % | 93.9 | % | (0.9 | )% | 1.5 | % | 1.7 | % | ||||||||||||||||
Lehigh Valley Mall | 561 | 92.7 | % | 88.0 | % | 570 | 97.1 | % | 95.3 | % | (1.6 | )% | (4.4 | )% | (7.3 | )% | ||||||||||||||||
Springfield Town Center | 529 | 92.7 | % | 90.3 | % | 525 | 91.3 | % | 88.3 | % | 0.8 | % | 1.4 | % | — | 2.0 | % | |||||||||||||||
Woodland Mall | 528 | 99.1 | % | 99.1 | % | 536 | 98.7 | % | 97.7 | % | (1.5 | )% | 0.4 | % | 1.4 | % | ||||||||||||||||
39.1 | % | $ | 593 | 95.1 | % | 93.1 | % | $ | 591 | 95.7 | % | 93.4 | % | 0.3 | % | (0.6 | )% | (0.3 | )% | |||||||||||||
Malls 6 - 10 | ||||||||||||||||||||||||||||||||
Dartmouth Mall | 507 | 98.2 | % | 97.0 | % | 466 | 94.4 | % | 90.8 | % | 8.8 | % | 3.8 | % | 6.2 | % | ||||||||||||||||
Jacksonville Mall | 500 | 99.9 | % | 99.8 | % | 490 | 98.0 | % | 96.0 | % | 2.0 | % | 1.9 | % | 3.8 | % | ||||||||||||||||
The Mall at Prince Georges | 495 | 95.1 | % | 89.7 | % | 451 | 98.4 | % | 96.6 | % | 9.8 | % | (3.3 | )% | (6.9 | )% | ||||||||||||||||
Viewmont Mall | 424 | 99.2 | % | 98.3 | % | 429 | 99.0 | % | 98.3 | % | (1.2 | )% | 0.2 | % | — | % | ||||||||||||||||
Springfield Mall | 419 | 96.1 | % | 96.1 | % | 407 | 93.5 | % | 93.5 | % | 2.9 | % | 2.6 | % | 2.6 | % | ||||||||||||||||
16.1 | % | $ | 464 | 97.5 | % | 95.4 | % | $ | 445 | 97.2 | % | 95.1 | % | 4.3 | % | 0.3 | % | 0.3 | % | |||||||||||||
Malls 11 - 15 | ||||||||||||||||||||||||||||||||
Magnolia Mall | 418 | 98.8 | % | 97.8 | % | 422 | 99.3 | % | 98.5 | % | (0.9 | )% | (0.5 | )% | (0.7 | )% | ||||||||||||||||
Moorestown Mall | 414 | 92.5 | % | 83.6 | % | 358 | 94.1 | % | 87.1 | % | 15.6 | % | (1.6 | )% | (3.5 | )% | ||||||||||||||||
Patrick Henry Mall | 406 | 97.5 | % | 96.4 | % | 437 | 95.6 | % | 93.6 | % | (7.1 | )% | 1.9 | % | 2.8 | % | ||||||||||||||||
Capital City Mall | 401 | 99.6 | % | 99.5 | % | 411 | 98.9 | % | 98.2 | % | (2.4 | )% | 0.7 | % | 1.3 | % | ||||||||||||||||
Valley Mall | 394 | 99.1 | % | 98.5 | % | 416 | 98.8 | % | 97.9 | % | (5.3 | )% | 0.3 | % | 0.6 | % | ||||||||||||||||
17.5 | % | $ | 406 | 97.2 | % | 95.1 | % | $ | 410 | 97.3 | % | 94.9 | % | (1.0 | )% | (0.1 | )% | 0.2 | % | |||||||||||||
Malls 16 - 21 | ||||||||||||||||||||||||||||||||
Valley View Mall | 376 | 97.9 | % | 96.4 | % | 384 | 96.1 | % | 94.8 | % | (2.1 | )% | 1.8 | % | 1.6 | % | ||||||||||||||||
Francis Scott Key Mall | 368 | 95.0 | % | 92.2 | % | 360 | 96.6 | % | 94.7 | % | 2.2 | % | (1.6 | )% | (2.5 | )% | ||||||||||||||||
Cumberland Mall | 367 | 97.4 | % | 95.7 | % | 376 | 97.6 | % | 96.1 | % | (2.4 | )% | (0.2 | )% | (0.4 | )% | ||||||||||||||||
Wyoming Valley Mall | 365 | 98.8 | % | 96.0 | % | 381 | 97.4 | % | 90.9 | % | (4.2 | )% | 1.4 | % | 5.1 | % | ||||||||||||||||
Plymouth Meeting Mall | 338 | 95.8 | % | 93.6 | % | 333 | 94.4 | % | 91.2 | % | 1.5 | % | 1.4 | % | 2.4 | % | ||||||||||||||||
Exton Square Mall | 321 | 86.5 | % | 84.6 | % | 331 | 86.3 | % | 86.2 | % | (3.0 | )% | 0.2 | % | (1.6 | )% | ||||||||||||||||
17.9 | % | $ | 353 | 94.9 | % | 92.6 | % | $ | 358 | 94.4 | % | 92.4 | % | (1.4 | )% | 0.5 | % | 0.2 | % | |||||||||||||
All Malls | 90.6 | % | $ | 475 | 95.9 | % | 93.8 | % | $ | 470 | 95.9 | % | 93.7 | % | 1.1 | % | — | % | 0.1 | % |
(1) | Based on reported sales by all comparable non-anchor tenants that lease individual spaces of less than 10,000 square feet and have occupied the space for at least 24 months. |
(2) | Average comp sales and total and non-anchor occupancy for Fashion District Philadelphia as of December 31, 2017 and 2016, respectively, are excluded because the property is under redevelopment. |
Tenant | Brands | Locations at Consolidated Properties | Locations at Unconsolidated Properties | Total Number of Locations (1) | Percentage of Annualized Gross Rent (2) | |||||
Foot Locker, Inc. | Champs, Foot Locker, Footaction, Footaction Flight 23, House of Hoops by Foot Locker, Kids Foot Locker, Lady Foot Locker, Nike Yardline | 43 | 8 | 51 | 4.1 | % | ||||
L Brands, Inc. | Bath & Body Works, Henri Bendel, Pink, Victoria's Secret | 39 | 6 | 45 | 3.9 | % | ||||
Signet Jewelers Limited | Kay Jewelers, Piercing Pagoda, Piercing Pagoda Plus, Plumb Gold, Totally Pagoda, Zale's Jewelers | 59 | 9 | 68 | 2.9 | % | ||||
Dick's Sporting Goods, Inc. | Dick's Sporting Goods, Field & Stream | 9 | 2 | 11 | 2.5 | % | ||||
Gap, Inc. | Banana Republic, Gap/Gap Kids/Gap Outlet/Baby Gap, Old Navy | 17 | 9 | 26 | 2.4 | % | ||||
American Eagle Outfitters, Inc. | Aerie, American Eagle Outfitters | 17 | 4 | 21 | 2.3 | % | ||||
J.C. Penney Company, Inc. (3) | JC Penney | 15 | 2 | 17 | 2.0 | % | ||||
Express, Inc. | Express, Express Factory Outlet, Express Men | 14 | 3 | 17 | 2.0 | % | ||||
Genesco, Inc. | Hat Shack, Hat World, Johnston & Murphy, Journey's, Journey's Kidz, Lids, Lids Locker Room, Shi by Journey's, Underground by Journey's | 48 | 8 | 56 | 1.8 | % | ||||
Ascena Realty Group, Inc. | Ann Taylor, Dress Barn, Justice, Lane Bryant, Loft, Maurices | 28 | 6 | 34 | 1.7 | % | ||||
Macy's Inc. | Bloomingdale's, Macy's | 15 | 2 | 17 | 1.6 | % | ||||
Forever 21, Inc. | Forever 21 | 8 | 1 | 9 | 1.5 | % | ||||
Regal Entertainment Group | Regal Cinemas | 4 | — | 4 | 1.4 | % | ||||
Luxottica Group S.p.A. | Lenscrafters, Pearle Vision, Sunglass Hut | 28 | 6 | 34 | 1.4 | % | ||||
Advent CR Holdings, Inc. | Charlotte Russe | 13 | 2 | 15 | 1.4 | % | ||||
H&M Hennes & Mauritz L.P. | H & M | 14 | — | 14 | 1.3 | % | ||||
The Children's Place Retail Stores, Inc. | The Children's Place | 15 | 2 | 17 | 1.1 | % | ||||
Darden Concepts, Inc. | Bahama Breeze, Capital Grille, Olive Garden, Seasons 52, Yard House | 8 | — | 8 | 1.0 | % | ||||
Best Buy Co., Inc | Best Buy, Best Buy Mobile | 16 | 3 | 19 | 1.0 | % | ||||
Dave & Buster's, Inc. | Dave & Buster's | 2 | — | 2 | 0.9 | % | ||||
Total Top 20 Tenants | 412 | 73 | 485 | 38.1 | % | |||||
Total Leases | 1,561 | 358 | 1,919 | 100.0 | % |
(1) | Excludes tenants from Fashion District Philadelphia which is under redevelopment. |
(2) | Includes our share of tenant gross rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments as of December 31, 2017. |
(3) | Includes a store at Willow Grove Park that the tenant closed in 2017. |
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 | |||||||||||||||||
2017 and Prior | 104 | 316,051 | 3.7 | % | $ | 15,125 | $ | 13,106 | 4.0 | % | $ | 47.86 | ||||||||||||
2018 | 240 | 745,508 | 8.7 | % | 34,022 | 29,746 | 9.0 | % | 45.64 | |||||||||||||||
2019 | 272 | 1,036,470 | 12.2 | % | 42,572 | 38,393 | 11.6 | % | 41.07 | |||||||||||||||
2020 | 228 | 1,110,983 | 13.0 | % | 39,649 | 34,779 | 10.5 | % | 35.69 | |||||||||||||||
2021 | 181 | 889,586 | 10.4 | % | 35,099 | 29,891 | 9.0 | % | 39.46 | |||||||||||||||
2022 | 158 | 479,209 | 5.6 | % | 27,737 | 24,205 | 7.3 | % | 57.88 | |||||||||||||||
2023 | 124 | 738,327 | 8.7 | % | 30,603 | 27,749 | 8.4 | % | 41.45 | |||||||||||||||
2024 | 126 | 513,159 | 6.0 | % | 30,891 | 28,708 | 8.7 | % | 60.20 | |||||||||||||||
2025 | 162 | 725,290 | 8.5 | % | 40,936 | 32,853 | 9.9 | % | 56.44 | |||||||||||||||
2026 | 119 | 581,535 | 6.8 | % | 31,678 | 24,973 | 7.5 | % | 54.47 | |||||||||||||||
2027 | 107 | 672,632 | 7.9 | % | 26,210 | 24,192 | 7.3 | % | 38.97 | |||||||||||||||
Thereafter | 52 | 714,139 | 8.4 | % | 23,452 | 22,710 | 6.9 | % | 32.84 | |||||||||||||||
Total/Average | 1,873 | 8,522,889 | 100.0 | % | $ | 377,974 | $ | 331,305 | 100.0 | % | $ | 44.35 |
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 | |||||||||||||||||
2018 | 3 | 365,231 | 6.5 | % | $ | 2,095 | $ | 2,095 | 7.2 | % | $ | 5.74 | ||||||||||||
2019 | 6 | 792,772 | 14.0 | % | 2,516 | 2,516 | 8.7 | % | 3.17 | |||||||||||||||
2020 | 6 | 675,699 | 12.0 | % | 3,149 | 3,149 | 10.8 | % | 4.66 | |||||||||||||||
2021 | 8 | 791,412 | 14.0 | % | 5,055 | 3,847 | 13.2 | % | 6.39 | |||||||||||||||
2022 | 8 | 1,174,834 | 20.8 | % | 4,410 | 4,059 | 14.0 | % | 3.75 | |||||||||||||||
2023 | 3 | 348,592 | 6.2 | % | 1,816 | 1,816 | 6.2 | % | 5.21 | |||||||||||||||
2024 | 1 | 135,186 | 2.4 | % | 800 | 800 | 2.8 | % | 5.92 | |||||||||||||||
2025 | 2 | 390,245 | 6.9 | % | 1,180 | 1,180 | 4.1 | % | 3.02 | |||||||||||||||
2026 | 1 | 58,371 | 1.0 | % | 861 | 861 | 3.0 | % | 14.75 | |||||||||||||||
2027 | 1 | 155,392 | 2.8 | % | 465 | 465 | 1.6 | % | 2.99 | |||||||||||||||
Thereafter | 7 | 758,026 | 13.4 | % | 8,296 | 8,296 | 28.4 | % | 10.94 | |||||||||||||||
Total/Average | 46 | 5,645,760 | 100.0 | % | $ | 30,643 | $ | 29,084 | 100.0 | % | $ | 5.43 |
(1) | Only includes owned space. Excludes tenants from Fashion District Philadelphia. |
(2) | Does not include tenants occupying space under license agreements with initial terms of less than one year. The GLA of these tenants is 583,921 square feet. |
(3) | Includes our share of tenant rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments. |
(4) | Accounts for all contiguous anchor space as one lease. |
Pennsylvania Real Estate Investment Trust | ||||||||||||||||||||
Property Information as of December 31, 2017 | ||||||||||||||||||||
Landlord Owned Anchors/Large Format Non Anchor | Anchor Stores Not Owned | Non-anchor occupied GLA | ||||||||||||||||||
Properties | Location | Tenant | Exp Year | Anchor GLA | Tenant | GLA | Large Format | Small Shop | Vacant | Total GLA | ||||||||||
Malls | ||||||||||||||||||||
Capital City Mall | Camp Hill, PA | JCPenney | 2020 | 102,825 | Macy's | 120,000 | 80,340 | 188,134 | 1,728 | 605,006 | ||||||||||
Dick's Sporting Goods | 2028 | 61,677 | ||||||||||||||||||
Field and Stream | 2031 | 50,302 | ||||||||||||||||||
Cherry Hill Mall | Cherry Hill, NJ | Nordstrom | 2025 | 138,000 | JCPenney | 174,285 | 231,481 | 435,217 | 30,354 | 1,313,937 | ||||||||||
Macy's | 304,600 | |||||||||||||||||||
Cumberland Mall | Vineland, NJ | Burlington | 2019 | 80,983 | BJ's Wholesale Club | 117,889 | 189,559 | 162,925 | 17,831 | 950,986 | ||||||||||
The Home Depot | 2019 | 132,013 | Boscov's | 155,341 | ||||||||||||||||
Dick's Sporting Goods | 2028 | 50,000 | ||||||||||||||||||
Regal Cinemas | 2019 | 44,445 | ||||||||||||||||||
Dartmouth Mall | Dartmouth, MA | JCPenney | 2019 | 100,020 | Macy's | 140,000 | 117,955 | 151,078 | 9,817 | 672,298 | ||||||||||
Sears | 2021 | 108,440 | ||||||||||||||||||
AMC Theaters | 2026 | 44,988 | ||||||||||||||||||
Exton Square Mall(1) | Exton, PA | Boscov's | 2019 | 178,000 | Macy's | 181,200 | 113,269 | 254,844 | 116,505 | 1,046,490 | ||||||||||
Sears | 2019 | 144,301 | ||||||||||||||||||
Round 1 | 2026 | 58,371 | ||||||||||||||||||
Francis Scott Key Mall | Frederick, MD | JCPenney | 2021 | 101,293 | Macy's | 139,333 | 139,863 | 171,985 | 30,752 | 754,259 | ||||||||||
Sears | 2023 | 120,883 | ||||||||||||||||||
Dick's Sporting Goods | 2025 | 50,150 | ||||||||||||||||||
Jacksonville Mall | Jacksonville, NC | Belk | 2021 | 72,510 | 123,079 | 129,158 | 502 | 494,854 | ||||||||||||
JCPenney | 2020 | 51,812 | ||||||||||||||||||
Sears | 2021 | 117,793 | ||||||||||||||||||
Lehigh Valley Mall | Allentown, PA | Boscov's | 2022 | 164,694 | JCPenney | 207,292 | 149,274 | 366,023 | 70,236 | 1,169,519 | ||||||||||
Macy's | 2022 | 212,000 | ||||||||||||||||||
Magnolia Mall | Florence, SC | Belk | 2021 | 115,793 | 54,310 | 170,349 | 7,001 | 574,303 | ||||||||||||
Best Buy | 2023 | 32,054 | ||||||||||||||||||
JCPenney | 2022 | 104,107 | ||||||||||||||||||
Dick's Sporting Goods | 2023 | 45,000 | ||||||||||||||||||
Burlington | 2028 | 45,689 |
Pennsylvania Real Estate Investment Trust | ||||||||||||||||||||
Property Information as of December 31, 2017 | ||||||||||||||||||||
Landlord Owned Anchors/Large Format Non Anchor | Anchor Stores Not Owned | Non-anchor occupied GLA | ||||||||||||||||||
Properties | Location | Tenant | Exp Year | Anchor GLA | Tenant | GLA | Large Format | Small Shop | Vacant | Total GLA | ||||||||||
Moorestown Mall | Moorestown, NJ | Boscov's | 2028 | 202,765 | Lord & Taylor | 121,200 | 32,504 | 196,310 | 56,317 | 872,530 | ||||||||||
Sears | 2022 | 205,591 | ||||||||||||||||||
Regal Cinemas | 2028 | 57,843 | ||||||||||||||||||
Patrick Henry Mall | Newport News, VA | Dick's Sporting Goods | 2022 | 50,250 | Dillard's | 144,157 | 60,095 | 227,290 | 10,658 | 717,662 | ||||||||||
JCPenney | 2020 | 85,212 | Macy's | 140,000 | ||||||||||||||||
Plymouth Meeting Mall | Plymouth Meeting, PA | Boscov's | 2028 | 188,429 | 187,876 | 216,968 | 30,888 | 737,316 | ||||||||||||
Whole Foods | 2029 | 65,155 | ||||||||||||||||||
AMC Theaters | 2027 | 48,000 | ||||||||||||||||||
Springfield Mall | Springfield, PA | Macy's | 192,000 | 20,577 | 193,440 | 8,628 | 610,544 | |||||||||||||
Target | 195,899 | |||||||||||||||||||
Springfield Town Center | Springfield, VA | Macy's | 2025 | 252,245 | JCPenney | 209,144 | 160,922 | 333,442 | 71,354 | 1,374,172 | ||||||||||
Target | 180,841 | |||||||||||||||||||
Dick's Sporting Goods | 2025 | 53,891 | ||||||||||||||||||
Nordstrom Rack | 2025 | 33,107 | ||||||||||||||||||
Regal Cinemas | 2029 | 49,788 | ||||||||||||||||||
Saks OFF 5th | 2026 | 29,438 | ||||||||||||||||||
The Mall at Prince Georges | Hyattsville, MD | JCPenney | 2021 | 148,778 | 151,319 | 243,076 | 45,488 | 919,502 | ||||||||||||
Macy's | 2023 | 195,655 | ||||||||||||||||||
Target | 2024 | 135,186 | ||||||||||||||||||
Valley Mall | Hagerstown, MD | Bon-Ton (2) | 2018 | 123,094 | — | 95,023 | 235,677 | 5,696 | 793,404 | |||||||||||
JCPenney | 2019 | 157,455 | Sears | 123,400 | ||||||||||||||||
Regal Cinemas | 2020 | 53,059 | ||||||||||||||||||
Valley View Mall | La Crosse, WI | JCPenney | 2020 | 96,357 | Herberger's | 41,344 | 53,368 | 168,867 | 9,905 | 628,093 | ||||||||||
Herberger's | 2033 | 100,000 | Sears | 113,252 | ||||||||||||||||
Dick's Sporting Goods | 2025 | 45,000 | ||||||||||||||||||
Viewmont Mall | Scranton, PA | JCPenney | 2020 | 193,112 | Macy's | 139,801 | 98,630 | 163,088 | 4,594 | 689,225 | ||||||||||
Dick's Sporting Goods | 2028 | 90,000 | ||||||||||||||||||
Pennsylvania Real Estate Investment Trust | ||||||||||||||||||||
Property Information as of December 31, 2017 | ||||||||||||||||||||
Landlord Owned Anchors/Large Format Non Anchor | Anchor Stores Not Owned | Non-anchor occupied GLA | ||||||||||||||||||
Properties | Location | Tenant | Exp Year | Anchor GLA | Tenant | GLA | Large Format | Small Shop | Vacant | Total GLA | ||||||||||
Willow Grove Park | Willow Grove, PA | JCPenney (3) | 2018 | 124,660 | Bloomingdale's | 237,537 | 88,284 | 263,952 | 20,282 | 1,175,631 | ||||||||||
Macy's | 2022 | 225,000 | Sears | 175,584 | ||||||||||||||||
Nordstrom Rack | 2022 | 40,332 | ||||||||||||||||||
Woodland Mall | Grand Rapids, MI | JCPenney | 254,905 | 163,474 | 270,926 | 3,775 | 850,396 | |||||||||||||
Macy's | 157,316 | |||||||||||||||||||
Wyoming Valley Mall | Wilkes-Barre, PA | Bon-Ton | 2027 | 155,392 | 43,968 | 186,551 | 9,624 | 832,253 | ||||||||||||
JCPenney | 2022 | 172,860 | ||||||||||||||||||
Macy's | 2020 | 146,381 | ||||||||||||||||||
Sears | 2018 | 117,477 | ||||||||||||||||||
Total Malls | 5,518,955 | 3,966,320 | 3,005,870 | 4,729,300 | 561,935 | 17,782,380 | ||||||||||||||
Other Retail Properties | ||||||||||||||||||||
Gloucester Premium Outlets | Blackwood, NJ | 37,303 | 278,410 | 54,198 | 369,911 | |||||||||||||||
Metroplex Shopping Center | Plymouth Meeting, PA | Giant Food Store | 2021 | 67,185 | Lowe's | 163,215 | 287,711 | 56,292 | — | 778,190 | ||||||||||
Target | 137,514 | |||||||||||||||||||
Dick's Sporting Goods | 2020 | 41,593 | ||||||||||||||||||
Saks OFF 5th | 2026 | 24,680 | ||||||||||||||||||
The Court at Oxford Valley | Fairless Hills, PA | Best Buy | 2021 | 59,620 | BJ's Wholesale Club | 116,872 | 282,733 | 54,141 | 11,028 | 704,526 | ||||||||||
The Home Depot | 130,751 | |||||||||||||||||||
Dick's Sporting Goods | 2021 | 49,381 | ||||||||||||||||||
Red Rose Commons | Lancaster, PA | The Home Depot | 134,558 | 215,790 | 15,207 | 32,296 | 462,883 | |||||||||||||
Weis Market | 65,032 | |||||||||||||||||||
Wyoming Valley Center | Wilkes-Barre, PA | 28,400 | — | 48,880 | 77,280 | |||||||||||||||
Total Other Retail Properties | 126,805 | 747,942 | 967,591 | 404,050 | 146,402 | 2,392,790 | ||||||||||||||
Total Portfolio | 5,645,760 | 4,714,262 | 3,973,461 | 5,133,350 | 708,337 | 20,175,170 | ||||||||||||||
(1) Vacant GLA includes 59,629 square feet from former JCPenney store which closed in the second quarter of 2015. | ||||||||||||||||||||
(2) BonTon will be closing and replaced with Belk in 2018. | ||||||||||||||||||||
(3) Closed in July 2017. |
Former/Existing Anchors | Replacement Tenant(s) | ||||||||
Property | Name | GLA '000's | Date Closed/Closing | Date Decommissioned | Name | GLA '000's | Actual/Targeted Opening Date | ||
Completed: | |||||||||
Cumberland Mall | JC Penney | 51 | Q3 15 | Q3 15 | Dick's Sporting Goods | 50 | Q4 16 | ||
Exton Square Mall | JC Penney | 118 | Q2 15 | n/a | Round 1 | 58 | Q4 16 | ||
Viewmont Mall | Sears | 193 | Q3 16 | Q2 17 | Dick's Sporting Goods/Field & Stream/HomeGoods | 113 | Q3 17 | ||
Capital City Mall | Sears | 101 | Q1 17 | Q2 17 | Dick's Sporting Goods | 88 | Q3 17 | ||
Sears Appliance; Fine Wine and Spirits | Q4 17 | ||||||||
Magnolia Mall | Sears | 91 | Q1 17 | Q2 17 | Burlington | 46 | Q3 17 | ||
Valley View Mall | Macy's | 100 | Q1 17 | Q2 17 | Herberger's | 100 | Q3 17 | ||
Exton Square Mall | K-mart | 96 | Q1 16 | Q2 16 | Whole Foods | 58 | Q1 18 | ||
In process: | |||||||||
Woodland Mall | Sears | 313 | Q2 17 | Q2 17 | Von Maur | 86 | Q4 19 | ||
Restaurants and small shop space | TBD | Q4 19 | |||||||
Magnolia Mall | Sears | See Above | HomeGoods | 22 | Q2 18 | ||||
Five Below | 8 | Q2 18 | |||||||
Moorestown Mall | Macy's | 200 | Q1 17 | n/a | Sierra Trading Post | 19 | Q1 19 | ||
HomeSense | 28 | Q4 18 | |||||||
Grocer and other tenant | 32 | Q4 18 | |||||||
Valley Mall | Macy's | 120 | Q1 16 | n/a | Onelife Fitness | 70 | Q3 18 | ||
Tilt | 48 | Q3 18 | |||||||
Bon Ton | 123 | Q1 18 | n/a | Belk | 123 | Q4 18 | |||
Willow Grove Park | JC Penney | 125 | Q3 17 | n/a | Movie theater and entertainment | 93 | Q3 19 | ||
Pending: | |||||||||
Plymouth Meeting Mall | Macy's(1) | 215 | Q1 17 | n/a | Various large format tenants | 153 | Q4 19 |
December 31, 2017 | December 31, 2016 | |||||||
ASSETS | ||||||||
Investments in real estate, at cost | ||||||||
Operating properties | $ | 3,180,212 | $ | 3,196,529 | ||||
Construction in progress (CIP) | 113,609 | 97,575 | ||||||
Land held for development | 5,881 | 5,910 | ||||||
Total investments in real estate | 3,299,702 | 3,300,014 | ||||||
Accumulated depreciation | (1,111,007 | ) | (1,060,845 | ) | ||||
Net investments in real estate | 2,188,695 | 2,239,169 | ||||||
Investments in partnerships, at equity | 216,823 | 168,608 | ||||||
Other assets: | ||||||||
Cash and cash equivalents | 15,348 | 9,803 | ||||||
Rent and other receivables (1) | 38,166 | 39,026 | ||||||
Intangible assets, net | 17,693 | 19,746 | ||||||
Deferred costs and other assets, net | 112,046 | 93,800 | ||||||
Assets held for sale | — | 46,680 | ||||||
Total other assets | 183,253 | 209,055 | ||||||
Total assets | $ | 2,588,771 | $ | 2,616,832 | ||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Mortgage loans | $ | 1,056,084 | $ | 1,222,859 | ||||
Term Loans | 547,758 | 397,043 | ||||||
Revolving Facility | 53,000 | 147,000 | ||||||
Tenants’ deposits and deferred rent | 11,446 | 13,262 | ||||||
Distributions in excess of partnership investments | 97,868 | 61,833 | ||||||
Fair value of derivative instruments | 20 | 1,520 | ||||||
Liabilities related to assets held for sale | — | 2,658 | ||||||
Other liabilities | 61,604 | 68,251 | ||||||
Total liabilities | 1,827,780 | 1,914,426 | ||||||
Equity: | ||||||||
Total equity | 760,991 | 702,406 | ||||||
Total liabilities and equity | $ | 2,588,771 | $ | 2,616,832 |
(1) | Total includes straight line rent of $25.4 million as of December 31, 2017 and $23.7 million as of December 31, 2016. |
December 31, 2017 | December 31, 2016 | ||||||
ASSETS: | |||||||
Investments in real estate, at cost: | |||||||
Operating properties | $ | 288,481 | $ | 307,001 | |||
Construction in progress (CIP) | 152,478 | 82,295 | |||||
Total investments in real estate | 440,959 | 389,296 | |||||
Accumulated depreciation | (101,701 | ) | (105,546 | ) | |||
Net investments in real estate | 339,258 | 283,750 | |||||
Cash and cash equivalents | 12,186 | 12,089 | |||||
Deferred costs and other assets, net | 15,839 | 17,978 | |||||
Total assets | 367,283 | 313,817 | |||||
LIABILITIES: | |||||||
Mortgage loans payable | 234,798 | 200,876 | |||||
Other liabilities | 13,530 | 6,166 | |||||
Total liabilities | 248,328 | 207,042 | |||||
Net investment | $ | 118,955 | $ | 106,775 | |||
Reconciliation to comparable GAAP balance sheet item: | |||||||
Investment in partnerships, at equity | $ | 216,823 | $ | 168,608 | |||
Distributions in excess of partnership investments | (97,868 | ) | (61,833 | ) | |||
Net investment | $ | 118,955 | $ | 106,775 |
December 31, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||||
Operating Properties and Land Held for Development | CIP | Accumulated Depreciation | Net Real Estate | Operating Properties and Land Held for Development | CIP | Accumulated Depreciation | Net Real Estate | |||||||||||||||||||||||||
Malls | ||||||||||||||||||||||||||||||||
Capital City Mall | $ | 123,452 | $ | 3,601 | $ | 43,437 | $ | 83,616 | $ | 112,256 | $ | 228 | $ | 40,264 | $ | 72,220 | ||||||||||||||||
Cherry Hill Mall | 479,603 | 20 | 229,299 | 250,324 | 471,953 | 422 | 209,950 | 262,425 | ||||||||||||||||||||||||
Cumberland Mall | 82,485 | — | 25,478 | 57,007 | 81,805 | 533 | 22,351 | 59,987 | ||||||||||||||||||||||||
Dartmouth Mall | 76,125 | 137 | 37,209 | 39,053 | 70,324 | 35 | 35,902 | 34,457 | ||||||||||||||||||||||||
Exton Square Mall | 187,901 | 12 | 53,683 | 134,230 | 165,118 | 21,360 | 48,842 | 137,636 | ||||||||||||||||||||||||
Francis Scott Key Mall | 96,013 | 3,844 | 37,827 | 62,030 | 93,467 | 1 | 35,118 | 58,350 | ||||||||||||||||||||||||
Jacksonville Mall | 87,535 | — | 35,988 | 51,547 | 85,889 | — | 32,792 | 53,097 | ||||||||||||||||||||||||
Logan Valley Mall(1) | — | — | — | — | 107,813 | — | 37,613 | 70,200 | ||||||||||||||||||||||||
Magnolia Mall | 95,738 | 2,368 | 44,339 | 53,767 | 90,582 | 973 | 41,993 | 49,562 | ||||||||||||||||||||||||
Moorestown Mall | 151,836 | 10,075 | 58,869 | 103,042 | 152,227 | 18 | 51,616 | 100,629 | ||||||||||||||||||||||||
Patrick Henry Mall | 154,098 | — | 65,052 | 89,046 | 151,733 | 640 | 62,121 | 90,252 | ||||||||||||||||||||||||
Plymouth Meeting Mall | 192,008 | 1,007 | 81,344 | 111,671 | 177,112 | 3,752 | 71,186 | 109,678 | ||||||||||||||||||||||||
The Mall at Prince Georges | 113,102 | 14,372 | 54,591 | 72,883 | 108,120 | 1,549 | 51,459 | 58,210 | ||||||||||||||||||||||||
Springfield Town Center | 491,010 | — | 36,204 | 454,806 | 485,265 | — | 21,922 | 463,343 | ||||||||||||||||||||||||
Valley Mall | 112,853 | 11,792 | 43,131 | 81,514 | 109,806 | 40 | 39,363 | 70,483 | ||||||||||||||||||||||||
Valley View Mall (2) | 54,542 | 11 | 10,108 | 44,445 | 79,376 | — | 24,710 | 54,666 | ||||||||||||||||||||||||
Viewmont Mall | 119,390 | 68 | 40,593 | 78,865 | 102,498 | 6,096 | 36,930 | 71,664 | ||||||||||||||||||||||||
Willow Grove Park | 243,965 | 200 | 96,756 | 147,409 | 241,252 | — | 88,976 | 152,276 | ||||||||||||||||||||||||
Woodland Mall | 199,789 | 34,138 | 69,121 | 164,806 | 196,014 | 28,692 | 63,204 | 161,502 | ||||||||||||||||||||||||
Wyoming Valley Mall | 118,767 | 10 | 47,978 | 70,799 | 113,919 | 7 | 44,533 | 69,393 | ||||||||||||||||||||||||
Total Malls | 3,180,212 | 81,655 | 1,111,007 | 2,150,860 | 3,196,529 | 64,346 | 1,060,845 | 2,200,030 | ||||||||||||||||||||||||
Other Properties | ||||||||||||||||||||||||||||||||
Springhills | — | 17,954 | — | 17,954 | — | 19,229 | — | 19,229 | ||||||||||||||||||||||||
White Clay Point | — | 14,000 | — | 14,000 | — | 14,000 | — | 14,000 | ||||||||||||||||||||||||
Land held for development | 5,899 | — | — | 5,899 | 5,910 | — | — | 5,910 | ||||||||||||||||||||||||
Total Other Properties | 5,899 | 31,954 | — | 37,853 | 5,910 | 33,229 | — | 39,139 | ||||||||||||||||||||||||
Total Investment in Real Estate | $ | 3,186,111 | $ | 113,609 | $ | 1,111,007 | $ | 2,188,713 | $ | 3,202,439 | $ | 97,575 | $ | 1,060,845 | $ | 2,239,169 |
December 31, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||||
Operating Properties and Land Held for Development | CIP | Accumulated Depreciation | Net Real Estate | Operating Properties and Land Held for Development | CIP | Accumulated Depreciation | Net Real Estate | |||||||||||||||||||||||||
Unconsolidated Malls | ||||||||||||||||||||||||||||||||
Fashion District Philadelphia (1) | $ | 63,484 | $ | 150,633 | $ | 6,997 | $ | 207,120 | $ | 83,780 | $ | 81,113 | $ | 16,798 | $ | 148,095 | ||||||||||||||||
Lehigh Valley Mall | 47,982 | 889 | 27,984 | 20,887 | 47,786 | 265 | 26,296 | 21,755 | ||||||||||||||||||||||||
Springfield Mall | 58,035 | 66 | 21,008 | 37,093 | 57,462 | 66 | 19,474 | 38,054 | ||||||||||||||||||||||||
Total Unconsolidated Malls | 169,501 | 151,588 | 55,989 | 265,100 | 189,028 | 81,444 | 62,568 | 207,904 | ||||||||||||||||||||||||
Unconsolidated Other Retail Properties | ||||||||||||||||||||||||||||||||
Gloucester Premium Outlets | 27,727 | 29 | 2,693 | 25,063 | 27,793 | 29 | 1,514 | 26,308 | ||||||||||||||||||||||||
Metroplex Shopping Center | 42,966 | 26 | 24,804 | 18,188 | 42,918 | 26 | 24,200 | 18,744 | ||||||||||||||||||||||||
The Court at Oxford Valley | 29,029 | 9 | 12,172 | 16,866 | 28,970 | 9 | 11,571 | 17,408 | ||||||||||||||||||||||||
Red Rose Commons | 12,912 | 42 | 3,691 | 9,263 | 11,996 | 3 | 3,451 | 8,548 | ||||||||||||||||||||||||
Total Unconsolidated Other Retail Properties | 112,634 | 106 | 43,360 | 69,380 | 111,677 | 67 | 40,736 | 71,008 | ||||||||||||||||||||||||
Unconsolidated Properties Under Development | ||||||||||||||||||||||||||||||||
Pavilion at Market East | 6,346 | 784 | 2,352 | 4,778 | 6,296 | 784 | 2,242 | 4,838 | ||||||||||||||||||||||||
Total Unconsolidated Properties Under Development | 6,346 | 784 | 2,352 | 4,778 | 6,296 | 784 | 2,242 | 4,838 | ||||||||||||||||||||||||
TOTAL INVESTMENT IN REAL ESTATE | $ | 288,481 | $ | 152,478 | $ | 101,701 | $ | 339,258 | $ | 307,001 | $ | 82,295 | $ | 105,546 | $ | 283,750 |
Quarter Ended December 31, 2017 | Year Ended December 31, 2017 | |||||||||||||||||||||||
Consolidated | Unconsolidated | Total | Consolidated | Unconsolidated | Total | |||||||||||||||||||
Redevelopment projects with incremental GLA and/or anchor replacement (1) | $ | 19,340 | $ | 17,648 | $ | 36,988 | $ | 107,158 | $ | 88,987 | $ | 196,145 | ||||||||||||
New development projects | — | 12 | 12 | — | 38 | 38 | ||||||||||||||||||
Tenant allowances | 6,795 | — | 6,795 | 20,171 | 403 | 20,574 | ||||||||||||||||||
Recurring capital expenditures: | ||||||||||||||||||||||||
CAM expenditures | 5,694 | 278 | 5,972 | 20,199 | 457 | 20,656 | ||||||||||||||||||
Non-CAM expenditures | 2,848 | 1,008 | 3,856 | 4,896 | 941 | 5,837 | ||||||||||||||||||
Total recurring capital expenditures | 8,542 | 1,286 | 9,828 | 25,095 | 1,398 | 26,493 | ||||||||||||||||||
Total | $ | 34,677 | $ | 18,946 | $ | 53,623 | $ | 152,424 | $ | 90,826 | $ | 243,250 |
Outstanding Debt | |||||||||||||||||||||
Fixed Rate (1) | % of Total Indebtedness | Variable Rate | % of Total Indebtedness | Total | % of Total Indebtedness | ||||||||||||||||
Consolidated mortgage loans payable (2) | $ | 1,053,595 | 55.5 | % | $ | 5,844 | 0.3 | % | $ | 1,059,439 | 55.8 | % | |||||||||
Unconsolidated mortgage loans payable (3) | 211,441 | 11.1 | % | 24,232 | 1.3 | % | 235,673 | 12.4 | % | ||||||||||||
Term Loans (4) | 500,000 | 26.3 | % | 50,000 | 2.7 | % | 550,000 | 29.0 | % | ||||||||||||
2013 Revolving Facility | — | — | % | 53,000 | 2.8 | % | 53,000 | 2.8 | % | ||||||||||||
TOTAL OUTSTANDING DEBT | $ | 1,765,036 | 92.9 | % | $ | 133,076 | 7.1 | % | $ | 1,898,112 | 100.0 | % | |||||||||
AVERAGE STATED INTEREST RATE | 3.79 | % | 2.86 | % | 3.73 | % |
(1) | Includes variable rate debt swapped to fixed rate debt. |
(2) | Excludes deferred financing costs of $3,355. |
(3) | Reflects our share of debt of equity method investees. Excludes our share of deferred financing costs of $874. |
(4) | Excludes deferred financing costs of $2,242. |
Average Debt Balance | ||||||||||||||||||
Mortgage Debt | 2013 Revolving Facility | Term Loans | TOTAL | |||||||||||||||
Beginning Balance | 9/30/2017 | $ | 1,263,707 | $ | — | $ | 550,000 | $ | 1,813,707 | |||||||||
Mortgage loan amortization, including our share of debt equity method investees | (6,258 | ) | — | — | (6,258 | ) | ||||||||||||
Lehigh Valley Mall borrowing | 100,000 | — | — | 100,000 | ||||||||||||||
Lehigh Valley Mall repayment | (62,337 | ) | — | — | (62,337 | ) | ||||||||||||
2013 Revolving Facility, net | — | 53,000 | — | 53,000 | ||||||||||||||
Ending Balance | 12/31/2017 | $ | 1,295,112 | $ | 53,000 | $ | 550,000 | $ | 1,898,112 | |||||||||
Weighted Average Balance | $ | 1,291,480 | $ | 27,587 | $ | 550,000 | $ | 1,869,067 |
Debt Maturities (1) | ||||||||||||||||||||||||||||
Year | Scheduled Amortization | Def Fin Cost Amort Mortgages | Mortgage Balance at Maturity | 2013 Revolving Facility | Term Loans | Def Fin Cost Amort Term Loans | Total Debt | |||||||||||||||||||||
2018 | 22,286 | (948 | ) | 92,701 | 53,000 | — | (764 | ) | 166,275 | |||||||||||||||||||
2019 | 23,624 | (890 | ) | — | — | 150,000 | (589 | ) | 172,145 | |||||||||||||||||||
2020 | 24,078 | (855 | ) | 106,950 | — | 150,000 | (499 | ) | 279,674 | |||||||||||||||||||
2021 | 23,201 | (521 | ) | 216,760 | — | 250,000 | (390 | ) | 489,050 | |||||||||||||||||||
2022 | 17,901 | (356 | ) | 410,739 | — | — | — | 428,284 | ||||||||||||||||||||
Thereafter | 32,426 | (659 | ) | 324,446 | — | — | — | 356,213 | ||||||||||||||||||||
$ | 143,516 | $ | (4,229 | ) | $ | 1,151,596 | $ | 53,000 | $ | 550,000 | $ | (2,242 | ) | $ | 1,891,641 |
(1) | The weighted average period to mortgage loan maturity is 5.48 years, excluding extension options. Includes 100% of mortgage loan debt from consolidated properties and our share of mortgage loan debt of equity method investees. |
Weighted Average Mortgage Interest Rates | |||||||
Year | Balance (1) | Interest Rate | |||||
2018(2) | $ | 92,701 | 0.15 | % | |||
2019 | — | — | % | ||||
2020 | 128,349 | — | % | ||||
2021 | 225,337 | 3.36 | % | ||||
2022 | 386,422 | 2.08 | % | ||||
Thereafter | 462,303 | 7.82 | % | ||||
Total | $ | 1,295,112 | 4.25 | % |
(1) | Includes our share of debt of equity method investees. |
(2) | Includes $68,469 related to the mortgage loan that is secured by Francis Scott Key Mall which extended January 2018. The mortgage loan bears interest at LIBOR Plus 2.60% with a term of four years plus a one year extension option. The mortgage loan is interest only for the first three years and amortization begins in year 4 and matures in January 2022. |
Debt | Interest Rate | Annual Debt Service | Balance at Maturity | Initial Maturity Date | Fully Extended Maturity Date | ||||||||||||||
Fixed Rate Mortgage Loans | |||||||||||||||||||
Francis Scott Key Mall (1)(2) | $ | 62,625 | 3.71 | % | $ | 2,268 | $ | 62,625 | Mar 2018 | Mar 2018 | |||||||||
Valley View Mall | 28,623 | 5.95 | % | 2,290 | 27,161 | July 2020 | July 2020 | ||||||||||||
Viewmont Mall (1) | 57,000 | 3.48 | % | 1,984 | 57,000 | Mar 2021 | Mar 2021 | ||||||||||||
Woodland Mall (1) | 127,200 | 3.02 | % | 5,515 | 121,600 | Apr 2021 | Apr 2021 | ||||||||||||
Red Rose Commons (3) | 13,442 | 5.14 | % | 978 | 12,378 | July 2021 | July 2021 | ||||||||||||
The Court at Oxford Valley (3) | 27,695 | 5.56 | % | 2,058 | 25,782 | July 2021 | July 2021 | ||||||||||||
Capital City Mall | 59,980 | 5.30 | % | 4,379 | 54,715 | Mar 2022 | Mar 2022 | ||||||||||||
Cumberland Mall | 45,205 | 4.40 | % | 3,433 | 38,157 | Aug 2022 | Aug 2022 | ||||||||||||
Cherry Hill Mall | 281,237 | 3.90 | % | 16,980 | 251,120 | Sept 2022 | Sept 2022 | ||||||||||||
Dartmouth Mall | 61,125 | 3.97 | % | 3,825 | 53,300 | Apr 2023 | Apr 2023 | ||||||||||||
Metroplex Shopping Center (3) | 39,205 | 5.00 | % | 2,818 | 33,502 | Oct 2023 | Oct 2023 | ||||||||||||
Wyoming Valley Mall | 74,978 | 5.17 | % | 5,124 | 66,747 | Dec 2023 | Dec 2023 | ||||||||||||
Patrick Henry Mall | 92,398 | 4.35 | % | 5,748 | 77,591 | July 2025 | July 2025 | ||||||||||||
Springfield Mall (3) | 31,373 | 4.45 | % | 1,964 | 26,299 | Oct 2025 | Oct 2025 | ||||||||||||
Willow Grove Park | 163,224 | 3.88 | % | 9,599 | 133,754 | Oct 2025 | Oct 2025 | ||||||||||||
Lehigh Valley Mall (3) | 99,726 | 5.88 | % | 5,768 | 79,789 | Nov 2027 | Nov 2027 | ||||||||||||
Total Fixed Rate Mortgage Loans | $ | 1,265,036 | 4.28 | % | $ | 74,731 | $ | 1,121,520 | |||||||||||
Variable Rate Mortgage Loans | |||||||||||||||||||
Pavilion East Associates (3)(4) | $ | 3,251 | 4.19 | % | $ | 136 | $ | 3,283 | Aug 2017 | Feb 2018 | |||||||||
Francis Scott Key Mall(2) | 5,844 | 3.96 | % | 231 | 5,844 | Mar 2018 | Mar 2018 | ||||||||||||
Gloucester Premium Outlets (3) | 20,981 | 2.76 | % | 579 | 20,981 | Jun 2018 | Jun 2019 | ||||||||||||
Total Variable Rate Mortgage Loans | $ | 30,076 | 3.15 | % | $ | 946 | $ | 30,108 | |||||||||||
Total Mortgage Loans | $ | 1,295,112 | 4.25 | % | $ | 75,677 | $ | 1,151,628 | |||||||||||
CONSOLIDATED MORTGAGE LOANS | $ | 1,059,439 | 4.05 | % | $ | 61,376 | $ | 949,614 | |||||||||||
CONSOLIDATED DEFERRED FINANCING FEES | (3,355 | ) | N/A | N/A | N/A | ||||||||||||||
UNCONSOLIDATED MORTGAGE LOANS (3) | 235,673 | 5.16 | % | 14,301 | 202,014 | ||||||||||||||
UNCONSOLIDATED DEFERRED FINANCING FEES (2) | (874 | ) | N/A | N/A | N/A | ||||||||||||||
2014 5 YEAR TERM LOAN (1) | 150,000 | 2.95 | % | 4,425 | 150,000 | Jan 2019 | Jan 2019 | ||||||||||||
2014 7 YEAR TERM LOAN (1) | 250,000 | 3.04 | % | 7,600 | 250,000 | Dec 2021 | Dec 2021 | ||||||||||||
2015 5 YEAR TERM LOAN FIXED (1) | 100,000 | 2.68 | % | 2,680 | 100,000 | June 2020 | June 2020 | ||||||||||||
2015 5 YEAR TERM LOAN VARIABLE | 50,000 | 2.81 | % | 1,405 | 50,000 | June 2020 | June 2020 | ||||||||||||
TERM LOAN DEFERRED FINANCING FEES | (2,242 | ) | N/A | N/A | N/A | ||||||||||||||
2013 REVOLVING FACILITY | 53,000 | 2.74 | % | 1,452 | 53,000 | June 2018 | June 2020 | ||||||||||||
UNCONSOLIDATED TERM LOAN(5) | — | — | — | — | |||||||||||||||
Total | $ | 1,891,641 | 3.82 | % | $ | 93,240 | $ | 1,754,628 | |||||||||||
AMORTIZATION OF DEFERRED FINANCING FEES | — | 0.16 | % | — | — | ||||||||||||||
EFFECTIVE INTEREST RATE | $ | 1,891,641 | 3.98 | % | $ | 93,240 | $ | 1,754,628 |
(1) | All or a portion of the loan has been effectively swapped to the fixed interest rate presented. |
(2) | In January 2018, the mortgage loan secured by Francis Scott Key Mall was extended. The mortgage loan bears interest at LIBOR Plus 2.60% with a term of four years plus a one year extension option. Also in January, we entered into an interest rate swap agreement to fix the rate on this mortgage loan to 5.01%. |
(3) | Includes our share of debt of equity method investees, based on our ownership percentage. |
(4) | In February 2018, the mortgage loan secured by Pavilion East Associates was extended. The mortgage loan bears interest at LIBOR Plus 2.85% with a term of three years. |
(5) | In January 2018, we along with Macerich, our partner in the Fashion District Philadelphia redevelopment project, entered into a $250.0 million term loan (the “FDP Term Loan”). The initial term of the FDP Term Loan is five years and bears interest at a variable rate of 2.00% over LIBOR. PREIT and Macerich have secured the FDP Term Loan by pledging their respective equity interests of 50% each in the entities that own Fashion District Philadelphia. |
December 31, 2017 | ||
Consolidated Liabilities to Gross Asset Value | 50.65 | % |
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 60% | ||
Secured Indebtedness to Gross Asset Value | 33.07 | % |
Secured indebtedness to Gross Asset Value may not exceed 60% | ||
Adjusted EBITDA to Fixed Charges | 1.89 | |
Adjusted EBITDA may not be less than 1.50 to 1.00 | ||
Unencumbered Adjusted NOI to Unsecured Interest Expense | 4.93 | |
Unencumbered Adjusted NOI to Unsecured Interest Expense may not be less than 1.75 to 1.00 | ||
Unencumbered Debt Yield | 13.92 | % |
The ratio of Unencumbered Adjusted NOI to Unsecured Debt may not be less than 11% |
(1) | The 2013 Revolving Facility agreement dated as of April 17, 2013, as amended, the 2014 Term Loan agreements dated as of June 30, 2016 and January 8, 2014, and the 2015 Term Loan agreement dated June 26, 2015 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, 2014 Term Loans, and 2015 Term Loan. In addition to the ratios set forth herein, there are several other ratios set forth in the covenants under the 2013 Revolving Facility, 2014 Term Loans and 2015 Term Loan with which the Company must comply, all of which are described in the Company’s 2016 Annual Report on Form 10-K dated February 28, 2017. |
NAME OF PROJECT LOCATION | PREIT's PROJECTED SHARE OF COST (1) | TOTAL PROJECT COST (1) | PREIT'S INVESTMENT TO DATE | TARGETED RETURN ON INCREMENTAL INVESTMENT | CONSTRUCTION START DATE | EXPECTED CON- STRUCTION COMPLETION | STABILIZATION YEAR |
(in millions) | (in millions) | (in millions) | |||||
Fashion District Philadelphia (2) Philadelphia, PA | $152.5-$182.5 | $305-$365 | $132.8 | 8-9% | 2016 | 2018 | 2020 |
-Complete overhaul of the former Gallery at Market East, spanning three city blocks in downtown Philadelphia. Project will offer a fusion of luxury and moderate outlet shops, flagship retail, destination dining and entertainment experiences. | |||||||
Woodland Mall Grand Rapids, MI | $74 | $74 | $34.1 | 5-6% | 2017 | 2019 | 2020 |
-Upgrade of existing tenant mix inclusive of 90,000 square foot Von Maur, along with an array of 30,000 square feet of high-quality retail in enclosed small shop space and quality polished casual restaurants, will join the roster, replacing a Sears store, in 2019. | |||||||
The Mall at Prince Georges Hyattsville, MD | $34-$35 | $34-$35 | $15.6 | 8-9% | 2016 | 2018 | 2019 |
-Property remerchandising, including H&M, with plans to add fast casual restaurants and other retail on the exterior of the mall. Minor interior cosmetic renovation and exterior re-facing completed. | |||||||
Anchor replacements: | |||||||
Capital City Mall Camp Hill, PA | $28-$30 | $28-30 | $19.8 | 7-9% | 2017 | 2018 | 2019 |
-58,000 square foot Dick’s Sporting Goods replaced Sears along with Fine Wine & Good Spirits, Sears Appliance and additional small shop tenants and outparcels. Dave & Buster's opening fall 2018. | |||||||
Magnolia Mall Florence, SC | $15-$19 | $15-$19 | $8.2 | 7-9% | 2017 | 2018 | 2019 |
-60,000 square foot, first-to-market Burlington replaced Sears in 2017, with HomeGoods and Five Below in 2018. | |||||||
Moorestown Mall Moorestown, NJ | $41-$42 | $41-$42 | $10.1 | 9-10% | 2018 | 2019 | 2020 |
-Sierra Trading Post, HomeSense, grocer, and other tenants to replace former Macy's. | |||||||
Valley Mall Hagerstown, MD | $26-$27 | $26-$27 | $7.5 | 7-8% | 2018 | 2019 | 2020 |
-Belk, Onelife Fitness, and Tilt Studio replacing former Macy's and BonTon. | |||||||
• | changes in the retail industry, including consolidation and store closings, particularly among anchor tenants; |
• | 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; |
• | increases in operating costs that cannot be passed on to tenants; |
• | current economic conditions and the state of employment growth 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; |
• | the effects of online shopping and other uses of technology on our retail tenants; |
• | risks related to our development and redevelopment activities; |
• | acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales; |
• | our ability to identify and execute on suitable acquisition opportunities and to integrate acquired properties into our portfolio; |
• | our partnerships and joint ventures with third parties to acquire or develop properties |
• | 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; |
• | changes to our corporate management team and any resulting modifications to our business strategies; |
• | our ability to sell properties that we seek to dispose of or our ability to obtain prices we seek; |
• | 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; |
• | our substantial debt and the liquidation preference of our preferred shares and our high leverage ratio; |
• | constraining leverage, unencumbered debt yield, interest and tangible net worth covenants under our principal credit agreements; |
• | our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; |
• | our ability to raise capital, including through joint ventures or other partnerships, through sales of properties or interests in properties, through the issuance of equity or equity-related securities if market conditions are favorable, or through other actions; |
• | our short- and long-term liquidity position; |
• | potential dilution from any capital raising transactions or other equity issuances; and |
• | general economic, financial and political conditions, including credit and capital market conditions, changes in interest rates or unemployment. |
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