-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VBXdGtUfE+WyCoKd3otqjcMl+F0jV9BqXCUTVLFEPFT2qX6rR8BuEkKH1fepU6jV w35XLZI0vtqtTD8s5dcmPg== /in/edgar/work/20000814/0000950116-00-001910/0000950116-00-001910.txt : 20000921 0000950116-00-001910.hdr.sgml : 20000921 ACCESSION NUMBER: 0000950116-00-001910 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PENNSYLVANIA REAL ESTATE INVESTMENT TRUST CENTRAL INDEX KEY: 0000077281 STANDARD INDUSTRIAL CLASSIFICATION: [6798 ] IRS NUMBER: 236216339 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-06300 FILM NUMBER: 696049 BUSINESS ADDRESS: STREET 1: THE BELLEVUE STREET 2: 200 S BROAD STREET CITY: PHILADELPHIA STATE: PA ZIP: 19102 BUSINESS PHONE: 2155429250 MAIL ADDRESS: STREET 1: THE BELLEVUE STREET 2: 200 S BROAD STREET CITY: PHILADELPHIA STATE: PA ZIP: 19102 10-Q 1 0001.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q [X] Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2000 ------------------- [ ] Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______________________ to ______________________. Commission File Number 1-6300 -------------------------------------------------------- Pennsylvania Real Estate Investment Trust - ------------------------------------------------------------------------------- (Exact name of Registrant as specified in its charter)
Pennsylvania 23-6216339 - ----------------------------------------------------------------------- ---------------------------------------------- (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 200 South Broad Street, Third Floor, Philadelphia, PA 19102-3803 - ----------------------------------------------------------------------- ---------------------------------------------- (Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (215) 875-0700 ---------------------------- N/A - ------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days. Yes [X] No [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Shares of beneficial interest outstanding at August 11, 2000: 13,458,937 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- ================================================================================ PENNSYLVANIA REAL ESTATE INVESTMENT TRUST CONTENTS Page Part I. Financial Information Item 1. Financial Statements (Unaudited): Consolidated Balance Sheets--June 30, 2000 and December 31, 1999 1-2 Consolidated Statements of Income--Three Months and Six Months Ended June 30, 2000 and June 30, 1999 3 Consolidated Statements of Cash Flows--Six Months Ended June 30, 2000 and June 30, 1999 4 Notes to Unaudited Consolidated Financial Statements 5-11 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 12-17 Item 3. Quantitative and Qualitative Disclosures about Market Risk 18 Part II. Other Information 19 Item 1. Not Applicable - - Item 2. Not Applicable Item 3. Not Applicable - Item 4. Submission of Matters to a Vote of Security Holders 19 Item 5. Other Information 19 Item 6. Exhibits and Reports on Form 8-K 19 Signatures 20 Exhibits Index 21 Part I. Financial Information Item 1. Financial Statements PENNSYLVANIA REAL ESTATE INVESTMENT TRUST CONSOLIDATED BALANCE SHEETS ASSETS (In thousands)
(Unaudited) June 30, December 31, 2000 1999 ----------- ----------- INVESTMENTS IN REAL ESTATE, at cost: Multifamily properties $ 247,466 $ 236,859 Retail properties 299,001 294,945 Industrial properties 2,504 5,078 Properties under development 51,643 40,639 ----------- ----------- Total investments in real estate 600,614 577,521 Less- Accumulated depreciation 90,058 84,577 ----------- ----------- 510,556 492,944 INVESTMENT IN PREIT-RUBIN, INC. 144 3,888 ADVANCES TO PREIT-RUBIN, INC. 8,631 6,200 INVESTMENTS IN PARTNERSHIPS AND JOINT VENTURES, at equity 18,849 17,873 ----------- ----------- 538,180 520,905 Less- Allowance for possible losses 528 528 ----------- ----------- 537,652 520,377 OTHER ASSETS: Cash and cash equivalents 8,897 7,165 Rents and sundry receivables (net of allowance for doubtful accounts of $988 and $559, respectively) 5,469 6,249 Deferred costs, prepaid real estate taxes and expenses, net 15,887 13,799 ----------- ----------- $ 567,905 $ 547,590 =========== ===========
(Continued) -1- PENNSYLVANIA REAL ESTATE INVESTMENT TRUST CONSOLIDATED BALANCE SHEETS (CONTINUED) LIABILITIES AND SHAREHOLDERS' EQUITY (In thousands)
(Unaudited) June 30, December 31, 2000 1999 ----------- ----------- LIABILITIES: Mortgage notes payable $ 264,593 $ 266,830 Bank and other loans payable 92,200 91,000 Construction loan payable 14,822 6,804 Tenants' deposits and deferred rents 3,004 2,291 Accrued pension and retirement benefits 898 952 Accrued expenses and other liabilities 16,913 13,812 ----------- ----------- 392,430 381,689 ----------- ----------- MINORITY INTEREST 32,669 32,489 ----------- ----------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Shares of beneficial interest, $1 par; authorized unlimited; issued and outstanding 13,458 shares at June 30, 2000 and 13,338 shares at December 31, 1999 13,458 13,338 Capital contributed in excess of par 147,689 145,697 Deferred compensation (1,643) - Distributions in excess of net income (16,698) (25,623) ------------ ----------- 142,806 133,412 ----------- ----------- $ 567,905 $ 547,590 =========== ===========
The accompanying notes are an integral part of these statements. -2- PENNSYLVANIA REAL ESTATE INVESTMENT TRUST CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share data) Three Months Ended Six Months Ended ---------------------- ----------------------- June 30, June 30, June 30, June 30, 2000 1999 2000 1999 --------- --------- --------- --------- REVENUES: Gross revenues from real estate $ 28,121 $ 21,659 $ 51,342 $ 42,759 Interest and other income 325 402 556 564 --------- --------- --------- --------- 28,446 22,061 51,898 43,323 --------- --------- --------- --------- EXPENSES: Property operating expenses 7,425 7,512 15,604 14,889 Depreciation and amortization 3,716 3,310 7,427 6,525 General and administrative expenses 1,406 994 2,441 1,846 Interest expense 5,642 5,360 11,486 10,467 --------- --------- --------- --------- 18,189 17,176 36,958 33,727 --------- --------- --------- --------- Income before equity in unconsolidated entities, gains on sales of interests in real estate and minority interest in operating partnership 10,257 4,885 14,940 9,596 EQUITY IN LOSS OF PREIT-RUBIN, INC. (1,898) (856) (3,387) (1,948) EQUITY IN INCOME OF PARTNERSHIPS AND JOINT VENTURES 1,808 1,377 3,480 2,843 GAINS ON SALES OF INTERESTS IN REAL ESTATE 6,648 - 8,911 1,346 --------- --------- --------- --------- Income before minority interest in operating partnership 16,815 5,406 23,944 11,837 MINORITY INTEREST IN OPERATING PARTNERSHIP (1,732) (488) (2,471) (1,049) --------- --------- --------- --------- NET INCOME $ 15,083 $ 4,918 $ 21,473 $ 10,788 ========= ========= ========= ========= BASIC INCOME PER SHARE $ 1.13 $ 0.37 $ 1.61 $ 0.81 ========= ========= ========= ========= DILUTED INCOME PER SHARE $ 1.13 $ 0.37 $ 1.61 $ 0.81 ========= ========= ========= =========
The accompanying notes are an integral part of these statements. -3- PENNSYLVANIA REAL ESTATE INVESTMENT TRUST CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands) Six Months Ended -------------------------- June 30, June 30, 2000 1999 --------- ---------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 21,473 $ 10,788 Adjustments to reconcile net income to net cash provided by operating activities- Minority interest in operating partnership 2,471 1,049 Depreciation and amortization 7,427 6,525 Provision for doubtful accounts 429 297 Gains on sales of interests in real estate (8,911) (1,346) Equity in loss of PREIT-RUBIN, Inc. 3,387 1,948 Decrease in allowance for possible losses -- (70) Change in assets and liabilities- Net change in other assets (2,093) (4,555) Net change in other liabilities 197 (1,551) --------- ---------- Net cash provided by operating activities 24,380 13,085 --------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES: Investments in wholly-owned real estate (13,141) (18,577) Investments in property under development (9,342) (21,683) Investment in and advances to PREIT-RUBIN, Inc. (2,430) (1,376) Investments in partnerships and joint ventures (2,136) (2,244) Cash proceeds from sale of interest in partnership 2,940 1,093 Cash proceeds from sale of wholly owned real estate 7,631 -- Cash distributions from partnerships and joint ventures in excess of equity in income 483 1,882 --------- ---------- Net cash used in investing activities (15,995) (40,905) --------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES: Principal installments on mortgage notes payable (2,237) (1,603) Repayment of mortgage notes payable -- (17,000) Proceeds from mortgage note payable -- 120,500 Proceeds from construction loans payable 8,017 -- Net borrowing (payment) from credit facility 1,200 (60,800) Shares of beneficial interest issued 374 82 Payment of deferred financing and equity offering costs -- (1,438) Distributions paid to shareholders (12,549) (12,515) Distributions paid to OP Unit holders (1,458) (1,096) Distributions to minority partners -- (139) --------- ---------- Net cash (used in) provided by financing activities (6,653) 25,991 --------- ---------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,732 (1,829) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 7,165 10,817 --------- ---------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 8,897 $ 8,988 ========= ==========
The accompanying notes are an integral part of these statements. -4- PENNSYLVANIA REAL ESTATE INVESTMENT TRUST NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 2000 (Unaudited) (In thousands, except per share data) 1. BASIS OF PRESENTATION: Pennsylvania Real Estate Investment Trust ("PREIT" or the "Company") prepared the consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to make the information presented not misleading. The consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in PREIT's latest annual report on Form 10-K. In management's opinion, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the consolidated financial position and the consolidated results of its operations and its cash flows, have been included. The results of operations for such interim periods are not necessarily indicative of the results for the full year. Certain prior period amounts have been reclassified to conform with current period presentation. 2. INVESTMENT IN PREIT-RUBIN, INC.: PREIT-RUBIN, Inc. ("PRI") is responsible for various activities, including management, leasing and real estate development of certain of PREIT's properties and for properties on behalf of third parties. Total management fees paid by PREIT's properties to PRI are included in property operating expenses in the accompanying consolidated statements of income and amounted to $244 and $438 for the three and six-month periods ended June 30, 2000, respectively, and $193 and $291 for the three and six-month periods ended June 30, 1999, respectively. PREIT's properties also paid leasing and development fees to PRI totaling $258 and $410 for the three and six-month periods ended June 30, 2000, respectively, and $226 and $442 for the three and six-month periods ended June 30, 1999, respectively. Leasing and development fees paid by PREIT's properties to PRI are capitalized and amortized to expense in accordance with PREIT's accounting policies. Intercompany profits earned by PRI related to such activities are deferred and will be amortized to income over these same periods in order to match revenues and expenses. PRI also provides management, leasing and development services for partnerships and other ventures in which certain officers of PREIT and PRI have either direct or indirect ownership interests. Total revenues earned by PRI for such services were $913 and $1,585 for the three and six-month periods ended June 30, 2000, respectively, and $856 and $1,703 for the three and six-month periods ended June 30, 1999, respectively. Summarized unaudited financial information for PRI as of and for the three and six-month periods ended June 30, 2000 and 1999 is as follows:
For the Three For the Three For the Six For the Six Months Ended Months Ended Months Ended Months Ended June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999 ------------- ------------- ------------- ------------- Total assets $ 5,389 $ 9,920 $ 5,389 $ 9,920 ============= ============ ============== ============== Management fees $ 991 $ 1,231 $ 1,981 $ 2,469 Leasing commissions 987 1,331 1,933 2,402 Development fees 117 233 179 475 Other revenue 719 1,011 1,108 1,498 ------------- ------------ -------------- -------------- Total revenue $ 2,814 $ 3,806 $ 5,201 $ 6,844 ============= ============ ============== ============== Net loss $ 1,901 $ 901 $ 3,412 $ 2,051 ============= ============ ============== ============== PREIT's share of net loss $ 1,898 $ 856 $ 3,387 $ 1,948 ============= ============ ============== ==============
-5- 3. INVESTMENTS IN PARTNERSHIPS AND JOINT VENTURES: The following table presents summarized financial information as to PREIT's equity in the assets and liabilities of 15 partnerships and joint ventures and 2 properties under development at June 30, 2000, and 16 partnerships and joint ventures and 2 properties under development at December 31, 1999 and PREIT's equity in income for the three and six-months ended June 30, 2000 and 1999:
June 30, December 31, 2000 1999 ---------- ---------- ASSETS Investments in real estate, at cost: Multifamily properties $ 56,604 $ 56,112 Retail properties 348,289 212,238 Properties under development 60,581 38,766 ---------- ---------- Total investments in real estate 465,474 307,116 Less- Accumulated depreciation 72,468 70,520 ---------- ---------- 393,006 236,596 Cash and cash equivalents 6,741 7,952 Deferred costs, prepaid real estate taxes and expenses, and other assets, net 45,068 43,677 ---------- ---------- Total assets $ 444,815 $ 288,225 ---------- ---------- LIABILITIES AND PARTNERS' EQUITY Mortgage notes payable $ 330,255 $ 231,611 Construction loans payable 39,517 22,298 Other liabilities 17,701 16,707 ---------- ---------- Total liabilities 387,473 270,616 ---------- ---------- Net equity 57,342 17,609 Less: Partners' share of net (equity) deficit (38,493) 264 ---------- ---------- Investment in partnerships and joint ventures $ 18,849 $ 17,873 ========== ==========
-6- EQUITY IN INCOME OF PARTNERSHIPS AND JOINT VENTURES
Three Months Ended Six Months Ended --------------------- --------------------- June 30, June 30, June 30, June 30, 2000 1999 2000 1999 -------- -------- -------- --------- Gross revenues from real estate $ 19,343 $ 14,363 $ 35,767 $ 28,521 -------- -------- -------- --------- Expenses: Property operating expenses 6,255 4,830 11,723 9,682 Mortgage and bank loan interest 6,503 4,441 11,617 8,629 Depreciation and amortization 3,217 2,311 5,713 4,465 -------- -------- -------- --------- 15,975 11,582 29,053 22,776 -------- -------- -------- --------- 3,368 2,781 6,714 5,745 Partners' share (1,560) (1,404) (3,234) (2,902) --------- -------- --------- --------- Equity in income of partnerships and joint ventures $ 1,808 $ 1,377 $ 3,480 $ 2,843 ======== ======== ======== =========
In January 2000, PREIT purchased, for $11 million, including the assumption of debt, its partner's 35% interest in the Emerald Point Multifamily Community. PREIT now owns 100% of the property. In February 2000, PREIT and an unrelated third-party formed a partnership and purchased the Willow Grove Park shopping center in Willow Grove, Pennsylvania for approximately $140 million. Upon completion of certain requirements, including the funding of an expansion of the shopping center, the Company's current 0.01% interest in the partnership that owns the shopping center will increase to a subordinated 50% interest. In January 2000, PREIT sold its 50% interest in the Park Plaza shopping center in Pinellas Park, Florida for proceeds of $3 million, resulting in a gain of $2.3 million. In April 2000, PREIT sold the CVS Warehouse and Distribution Center, an industrial property in Alexandria, Virginia, for total proceeds of approximately $11.7 million including the sale price of $7.7 million and a lease termination fee with the building's sole tenant for $4 million. The sale of the property resulted in a gain of approximately $6.6 million. In the second quarter of 2000, PREIT received termination fees of $0.4 million and $1.2 million at Northeast Tower Community Center and Mandarin Corners Community Center, respectively. 4. DISTRIBUTIONS: The per-share amount declared at the date of this report and the per-share amount declared in the comparable period for distribution are as follows: Amount Per Date Declared Record Date Payment Date Share ------------- ----------- ------------ ----- July 15, 1999 August 31, 1999 September 15, 1999 $0.47 July 13, 2000 August 31, 2000 September 15, 2000 $0.47 -7- 5. EARNINGS PER SHARE: Basic Earnings Per Share is based on the weighted average number of common shares outstanding during the period. Diluted Earnings Per Share is based on the weighted average number of shares outstanding during the period, adjusted to give effect to common share equivalents. A reconciliation between basic and diluted Earnings Per Share is shown below:
For the Three Months Ended For the Three Months Ended June 30, 2000 June 30, 1999 ------------------------------ --------------------------- Per Share Per Share Income Shares Amount Income Shares Amount -------- ------ ------ ------- ------ ------ BASIC EARNINGS PER SHARE: Net income $ 15,083 13,385 $ 1.13 $ 4,918 13,315 $ 0.37 ======== ====== ====== ======= ====== ====== DILUTED EARNINGS PER SHARE: Net income $ 15,083 13,385 $ 4,918 13,315 Common stock equivalents -- -- -- 10 -------- ------ ------- ------ $ 15,083 13,385 $ 1.13 $ 4,918 13,325 $ 0.37 ======== ====== ====== ======= ====== ====== For the Six Months Ended For the Six Months Ended June 30, 2000 June 30, 1999 ------------------------------ --------------------------- Per Share Per Share Income Shares Amount Income Shares Amount -------- ------ ------ ------- ------ ------ BASIC EARNINGS PER SHARE: Net income $ 21,473 13,362 $ 1.61 $10,788 13,312 $ 0.81 ======== ====== ====== ======= ====== ====== DILUTED EARNINGS PER SHARE: Net income $ 21,473 13,362 $10,788 13,312 Common stock equivalents -- 1 -- 7 -------- ------ ------- ------ $ 21,473 13,363 $ 1.61 $10,788 13,319 $ 0.81 ======== ====== ====== ======= ====== ======
6. CASH FLOW INFORMATION: Cash paid for interest was $11,243 (net of capitalized interest of $1,741) and $5,219 (net of capitalized interest of $419) for the six month periods ended June 30, 2000 and June 30, 1999, respectively. The following non-cash transactions occurred during 2000: o A $2.2 million fixed asset replacement reserve was established in connection with the acquisition of the Emerald Point multifamily community minority interest (See Note 3). o Restricted stock in the amount of $1.6 million was issued to the officers of PREIT and PRI and recorded as deferred compensation in the accompanying balance sheet. 7. COMMITMENTS AND CONTINGENCIES: Environmental matters have arisen at certain properties in which PREIT has an interest for which reserves have previously been established. No additional material incremental cost is expected to be incurred on these properties. -8- As part of the merger with PRI, PREIT entered into a contribution agreement (the "Contribution Agreement") which includes a provision for PREIT Associates, L.P., (PREIT's operating partnership) to issue up to 800,000 additional Class A Operating Partnership ("OP") units over the five-year period beginning October 1, 1997 and ending September 30, 2002 according to a formula based upon PREIT's adjusted funds from operations per share during the five-year period. The Contribution Agreement establishes "hurdle" and "target" levels for PREIT's adjusted funds from operations per share during specified earn-out periods to determine whether, and to what extent, the contingent OP units will be issued. As of June 30, 2000, 330,000 of the 800,000 OP units for the period covering October 1, 1997 to December 31, 1999 had been earned. These OP units earned resulted in an additional purchase price of approximately $5.7 million. PREIT intends to account for the further issuance of contingent OP units as additional purchase price when such additional amounts are determinable. At June 30, 2000, PREIT had approximately $60 million committed to complete current development and redevelopment projects. In connection with certain development properties, PREIT Associates, L.P. may be required to issue additional OP units upon the achievement of certain financial results. 8. RECENT ACCOUNTING PRONOUNCEMENTS: The Financial Accounting Standards Board has issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities", as amended by SFAS No. 138. The Statement establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value. PREIT will be required to adopt this statement effective as of January 1, 2001. PREIT does not expect the adoption of this statement to have a material impact on its financial position or results of operations. 9. SUBSEQUENT EVENT: In July 2000, PREIT sold the Valley View Shopping Center located in Wilmington, Delaware, for total proceeds of $9.6 million and expects to record a gain of approximately $1.5 million. 10. SEGMENT INFORMATION: PREIT has four reportable segments: (1) retail properties, (2) multifamily properties, (3) other, and (4) corporate. The retail segment includes the operation and management of 24 regional and community shopping centers (14 wholly owned and 10 owned in joint venture form). The multifamily segment includes the operation and management of 19 apartment communities (14 wholly owned and 5 owned in joint venture form). The other segment includes the operation and management of 4 retail properties under development (2 wholly owned and 2 owned in joint venture form) and 4 industrial properties (all wholly owned). The corporate segment is responsible for cash and investment management and certain other general support functions. The accounting policies for the segments are the same as those PREIT uses for its consolidated financial reporting, except that for segment reporting purposes, PREIT uses the "proportionate-consolidation method" of accounting (a non-GAAP measure) for joint venture properties instead of the equity method of accounting. PREIT calculates the proportionate-consolidation method by applying its percentage ownership interest to the historical financial statements of its equity method investments. -9-
(In thousands) Adjustments Three Months Ended to Equity Total June 30, 2000 Retail Multifamily Other Corporate Total Method Consolidated - ------------------ -------- ----------- --------- --------- --------- ----------- ------------ Real estate operating revenues $ 17,774 $ 13,467 $ 4,167 -- $ 35,408 $ (7,287) $ 28,121 Real estate operating expense 4,092 5,479 34 -- 9,605 (2,180) 7,425 -------- --------- -------- -------- --------- --------- --------- Net operating income 13,682 7,988 4,133 -- 25,803 (5,107) 20,696 -------- --------- -------- -------- --------- --------- --------- General and administrative expenses -- -- -- (1,406) (1,406) -- (1,406) Interest income -- -- -- 325 325 -- 325 PRI net operating loss -- -- -- (1,437) (1,437) 1,437 -- -------- --------- -------- -------- --------- --------- --------- EBIDTA 13,682 7,988 4,133 (2,518) 23,285 (3,670) 19,615 -------- --------- -------- -------- --------- --------- --------- Interest expense (4,344) (3,454) -- (254) (8,052) 2,410 (5,642) Depreciation and amortization (2,653) (2,065) (13) (335) (5,066) 1,350 (3,716) Gains on sales of interests in real estate -- -- 6,648 -- 6,648 -- 6,648 Minority interest in operating partnership -- -- -- (1,732) (1,732) -- (1,732) Equity in interest of partnerships and joint ventures -- -- -- -- -- 1,808 1,808 Equity in loss of PRI -- -- -- -- -- (1,898) (1,898) -------- --------- -------- -------- --------- --------- --------- Net income $ 6,685 $ 2,469 $ 10,768 $ (4,839) $ 15,083 $ -- $ 15,083 -------- --------- -------- -------- --------- --------- --------- Investments in real estate, at cost $404,142 $ 276,018 $ 96,440 $ -- $ 776,600 $(175,986) $ 600,614 -------- --------- -------- -------- --------- --------- --------- Total assets $384,423 $ 216,262 $ 94,985 $ 13,833 $ 709,503 $(141,598) $ 567,905 -------- --------- -------- -------- --------- --------- --------- Recurring capital expenditures $ 184 $ 780 $ -- $ -- $ 964 $ (162) $ 802 -------- --------- -------- -------- --------- --------- --------- Adjustments Three Months Ended to Equity Total June 30, 1999 Retail Multifamily Other Corporate Total Method Consolidated - ------------------ -------- ----------- --------- --------- --------- ----------- ------------ Real estate operating revenues $ 15,578 $ 12,781 $ 379 $ -- $ 28,738 $ (7,079) $ 21,659 Real estate operating expense 4,703 5,172 11 -- 9,886 (2,374) 7,512 -------- --------- -------- -------- --------- --------- --------- Net operating income 10,875 7,609 368 -- 18,852 (4,705) 14,147 -------- --------- -------- -------- --------- --------- --------- General and administrative expenses -- -- -- (994) (994) -- (994) Interest income -- -- -- 402 402 -- 402 PRI net operating loss -- -- -- (403) (403) 403 -- -------- --------- -------- -------- --------- --------- --------- EBIDTA 10,875 7,609 368 (995) 17,857 (4,302) 13,555 -------- --------- -------- -------- --------- --------- --------- Interest expense (3,829) (3,279) (421) (211) (7,740) 2,380 (5,360) Depreciation and amortization (2,466) (1,873) (24) (348) (4,711) 1,401 (3,310) Minority interest in operating partnership -- -- -- (488) (488) -- (488) Equity in interest of partnerships and joint ventures -- -- -- -- -- 1,377 1,377 Equity in loss of PRI -- -- -- -- -- (856) (856) -------- --------- -------- -------- --------- --------- --------- Net income $ 4,580 $ 2,457 $ (77) $ (2,042) $ 4,918 $ -- $ 4,918 -------- --------- --------- -------- --------- --------- --------- Investments in real estate, at cost $279,442 $ 233,849 $ 42,991 $ -- $ 556,282 $ -- $ 556,282 -------- --------- -------- -------- --------- --------- --------- Total assets $231,576 $ 202,850 $ 54,203 $169,623 $ 658,252 $(130,242) $ 528,010 -------- --------- -------- -------- --------- --------- --------- Recurring capital expenditures $ 48 $ 670 $ -- $ -- $ 718 $ (93) $ 625 -------- --------- --------- -------- --------- --------- ---------
-10-
(In thousands) Adjustments Six Months Ended to Equity Total June 30, 2000 Retail Multifamily Other Corporate Total Method Consolidated - ---------------- -------- ----------- --------- --------- --------- ----------- ------------ Real estate operating revenues $ 34,463 $ 26,929 $ 4,545 -- $ 65,937 $ (14,595) $ 51,342 Real estate operating expense 9,290 10,826 39 -- 20,155 (4,551) 15,604 -------- --------- -------- -------- --------- --------- --------- Net operating income 25,173 16,103 4,506 -- 45,782 (10,044) 35,738 -------- --------- -------- -------- --------- --------- --------- General and administrative expenses -- -- -- (2,441) (2,441) -- (2,441) Interest income -- -- -- 556 556 -- 556 PRI net operating loss -- -- -- (2,567) (2,567) 2,567 -- -------- --------- -------- -------- --------- --------- --------- EBIDTA 25,173 16,103 4,506 (4,452) 41,330 (7,477) 33,853 -------- --------- -------- -------- --------- --------- --------- Interest expense (8,735) (7,007) -- (483) (16,225) 4,739 (11,486) Depreciation and amortization (5,319) (4,084) (37) (632) (10,072) 2,645 (7,427) Gains on sales of interests in real estate 2,263 -- 6,648 -- 8,911 -- 8,911 Minority interest in operating partnership -- -- -- (2,471) (2,471) -- (2,471) Equity in interest of partnerships and joint ventures -- -- -- -- -- 3,480 3,480 Equity in loss of PRI -- -- -- -- -- (3,387) (3,387) -------- --------- -------- -------- --------- --------- --------- Net income $ 13,382 $ 5,012 $ 11,117 $ (8,038) $ 21,473 $ -- $ 21,473 -------- --------- -------- -------- --------- --------- --------- Investments in real estate, at cost $404,142 $ 276,018 $ 96,440 $ -- $ 776,600 $(175,986) $ 600,614 -------- --------- -------- -------- --------- --------- --------- Total assets $384,423 $ 216,262 $ 94,985 $ 13,833 $ 709,503 $(141,598) $ 567,905 -------- --------- -------- -------- --------- --------- --------- Recurring capital expenditures $ 303 $ 1,484 $ -- $ -- $ 1,787 $ (323) $ 1,464 -------- --------- -------- --------- --------- --------- --------- Adjustments Six Months Ended to Equity Total June 30, 1999 Retail Multifamily Other Corporate Total Method Consolidated - ---------------- -------- ----------- --------- --------- --------- ----------- ------------ Real estate operating revenues $ 30,453 $ 25,585 $ 776 $ -- $ 56,814 $ (14,055) $ 42,759 Real estate operating expense 9,255 10,377 14 -- 19,646 (4,757) 14,889 -------- --------- -------- -------- --------- --------- --------- Net operating income 21,198 15,208 762 -- 37,168 (9,298) 27,870 -------- --------- -------- -------- --------- --------- --------- General and administrative expenses -- -- -- (1,846) (1,846) -- (1,846) Interest income -- -- -- 564 564 -- 564 PRI net operating loss -- -- -- (1,203) (1,203) 1,203 -- -------- --------- -------- --------- --------- --------- --------- EBIDTA 21,198 15,208 762 (2,485) 34,683 (8,095) 26,588 -------- --------- -------- -------- --------- --------- --------- Interest expense (8,424) (5,512) (584) (565) (15,085) 4,618 (10,467) Depreciation and amortization (4,792) (3,713) (50) (656) (9,211) 2,686 (6,525) PRI income taxes -- -- -- 104 104 (104) -- Gains on sales of interests in real estate 445 -- 901 -- 1,346 -- 1,346 Minority interest in operating partnership -- -- -- (1,049) (1,049) -- (1,049) Equity in interest of partnerships and joint ventures -- -- -- -- -- 2,843 2,843 Equity in loss of PRI -- -- -- -- -- (1,948) (1,948) -------- --------- -------- -------- --------- --------- --------- Net income $ 8,427 $ 5,983 $ 1,029 $ (4,651) $ 10,788 $ -- $ 10,788 -------- ---------- -------- -------- --------- --------- --------- Investments in real estate, at cost $279,442 $ 233,849 $ 42,991 $ -- $ 556,282 $ -- $ 556,282 -------- --------- -------- -------- --------- --------- --------- Total assets $231,576 $ 202,850 $ 54,203 $169,623 $ 658,252 $(130,242) $ 528,010 -------- --------- -------- -------- --------- --------- --------- Recurring capital expenditures $ 185 $ 1,497 $ -- $ -- $ 1,682 $ (185) $ 1,497 -------- --------- -------- --------- --------- --------- ---------
-11- Item 2. PENNSYLVANIA REAL ESTATE INVESTMENT TRUST MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources PREIT expects to meet its short-term liquidity requirements generally through its available working capital and net cash provided by operations. PREIT believes that the net cash provided by operations will be sufficient to make distributions to continue to qualify as a REIT under the Internal Revenue Code. PREIT also believes that the foregoing sources of liquidity will be sufficient to fund its short-term liquidity needs for the foreseeable future, including recurring capital expenditures, tenant improvements and leasing commissions. PREIT expects to meet certain long-term liquidity requirements such as property acquisitions, scheduled debt maturities, renovations, expansions and other non-recurring capital improvements through long-term secured and unsecured indebtedness, the issuance of additional equity securities and the use of the remaining funds available under its $150 million credit facility (the "Credit Facility"). The Credit Facility matures on December 31, 2000. Management is in the process of negotiating a new Credit Facility which is expected to make additional funds available to the Company. Management expects these negotiations to be completed in the fourth quarter of 2000. The Credit Facility At June 30, 2000, PREIT had borrowed $92.2 million against its Credit Facility and had pledged $6.7 million as collateral for several letters of credit. Of the unused portion of the Credit Facility of approximately $51.1 million, as of June 30, 2000, the Company's loan covenant restrictions allow the Company to borrow approximately an additional $19.9 million (based on the existing property collateral pool) to fund property acquisitions, scheduled debt maturities and other uses. At June 30, 2000, the interest rate on the Credit Facility was 8.34%. Mortgage Notes In addition to amounts due under the Credit Facility during the next three years, construction and mortgage loans, secured by properties owned by 2 partnerships in which PREIT has an interest, mature by their terms. Balloon payments on these loans total $40.1 million of which PREIT's proportionate share is $20.4 million. Construction and mortgage loans on properties wholly-owned by PREIT also mature by their terms. Balloon payments on these loans total $29.8 million ($15.0 million in 2000 and $14.8 million in 2001). -12- Funds from Operations Funds from operations (FFO) increased by $5.6 million for the six months ended June 30, 2000, as compared to the six months ended June 30, 1999, as follows:
(In thousands) Three Months Ended Six Months Ended June 30 June 30 --------------------- ------------------------- Funds from Operations(1) 2000 1999 2000 1999 - ----------------------------------------------- -------- -------- -------- --------- Income before minority interest in operating $ 16,815 $ 5,406 $ 23,944 $ 11,837 partnership Less: Gains on sales of interests in real estate (6,648) -- (8,911) (1,346) Add: Depreciation and amortization- Wholly-owned and consolidated partnerships 3,716 3,266 7,427 6,422 Unconsolidated partnerships and joint ventures 1,137 1,137 2,258 2,196 Excess purchase price over net assets acquired 92 54 146 107 Refinancing prepayment fee of partnerships/joint ventures -- 55 -- 55 Less: Depreciation of non-real estate assets (65) (60) (130) (120) Amortization of deferred financing costs (167) (237) (330) (376) -------- -------- -------- --------- Funds from operations $ 14,880 $ 9,621 $ 24,404 $ 18,775 ======== ======== ======== ========= Weighted average number of shares outstanding 13,385 13,315 13,362 13,312 Weighted average effect of full conversion of OP Units 1,535 1,321 1,538 1,297 -------- -------- -------- --------- 14,920 14,636 14,900 14,609 ======== ======== ======== =========
(1) Funds from operations ("FFO") is defined as income before gains (losses) on investments, excluding gains (losses) on sale of depreciable operating real estate and extraordinary items (computed in accordance with generally accepted accounting principles, "GAAP") plus real estate depreciation and similar adjustments for unconsolidated joint ventures after adjustments for non-real estate depreciation and amortization of financing costs. FFO should not be construed as an alternative to net income (as determined in accordance with GAAP) as an indicator of PREIT's operating performance, or to cash flows from operating activities (as determined in accordance with GAAP) as a measure of liquidity. In addition, PREIT's measure of FFO as presented may not be comparable to similar measures reported by other companies. Cash Flows During the six months ended June 30, 2000, PREIT generated $24.4 million in cash flow from operating activities. Investing activities during the six months ended June 30, 2000 used cash of $16.0 million including (i) $9.3 million in investments in property under development, (ii) $13.1 million in investments in wholly-owned real estate assets, (iii) $4.6 million in investments in the affiliated management company and partnerships, offset by (iv) cash proceeds from the sale of real estate and partnership interest of $7.6 million and $2.9 million, respectively, and (v) distributions from partnerships in excess of equity in income of $0.5 million. Financing activities used cash of $6.7 million including (i) $8.0 million of construction loans payable and (ii) a net borrowing of $1.2 million under the Company's Credit Facility, offset by (iii) $14.0 million of distributions to shareholders and OP unit holders, and (iv) principal installments on mortgages of $2.2 million. -13- Contingent Liabilities At June 30, 2000, PREIT had approximately $60 million committed to complete current development and redevelopment projects. In connection with certain development properties, PREIT Associates, L.P., may be required to issue additional OP units upon the achievement of certain financial results. PREIT along with certain of its joint venture partners has guaranteed debt totaling $6.1 million. Also, PREIT and one of its joint venture partners have jointly and severally guaranteed the construction loan payable on a development project. The balance of the loan at June 30, 2000 was $39.5 million and the remaining commitment from the lender was $26.5 for a total credit line of $66.0 million. Interest Rate Protection In order to reduce exposure to variable interest rates, PREIT entered into a six-year interest rate swap agreement with First Union, on $20 million of indebtedness which fixes a rate of 6.12% per annum versus 30-day LIBOR until June 2001. Results of Operations Six Month Periods Ended June 30, 2000 and 1999 Gross revenues from real estate increased by $8.5 million to $51.3 million for the six-month period ended June 30, 2000, as compared to the corresponding period in 1999. Retail property revenues increased by $3.1 million. Of this amount $1.0 million is attributable to 1999 acquisitions and properties under development in 1999 now placed in service. $1.6 million in termination fees were received during the 2000 period. The remaining $0.5 million represents an increase for properties owned during both periods. Multifamily revenues increased by $1.3 million for properties owned during both periods due to rental rate increases and higher occupancy rates. Industrial property revenues increased by $4.0 million due to the CVS lease termination fee. Property operating expenses increased by $0.7 million to $15.6 million for the six months ended June 30, 2000 as compared to the six months ended June 30, 1999. Retail property operating expenses increased by $0.3 million with a $0.2 million increase attributable to 1999 acquisitions and properties under development in 1999 now placed in service offset by operating expenses for properties owned during both periods which increased by $0.1 million. Multifamily operating expenses increased by $0.4 million due to increased repairs and maintenance, payroll and bad debt costs. Depreciation and amortization increased by $0.9 million to $7.4 million for the six months ended June 30, 2000 as compared to the six months ended June 30, 1999. Retail property depreciation increased by $0.4 million, of which $0.2 million is the result of 1999 acquisitions and the new development properties placed in service. Retail depreciation increased by $0.2 million for properties owned during both periods because of a higher asset base. Multifamily depreciation increased by $0.5 million for properties owned during both periods due to a higher asset base. Interest expense increased by $1.0 million to $11.5 million for the six months ended June 30, 2000 as compared to the six months ended June 30, 1999. Interest expense incurred on the newly placed multifamily mortgages resulted in a $1.8 million increase. Interest expense on the credit facility decreased by $0.8 million because of the reduced weighted-average amount outstanding for the 2000 period of $92.3 million as compared to $106.0 million for the 1999 period. -14- Equity in income of partnerships and joint ventures increased by $0.7 million to $3.5 million for the six months ended June 30, 2000 as compared to the six months ended June 30, 1999. This is primarily attributable to increased income from Whitehall Mall which was under redevelopment in the 1999 period. Equity in net loss of PREIT-RUBIN, Inc. for the 2000 period was $3.4 million as compared to $1.9 million in the 1999 period. The increase in the equity in net loss was primarily due to decreases in nonrecurring brokerage commissions of $0.5 million, one-time development fees of $0.3 million and management fees of $0.5 million, and write off of development costs of $0.4 million. Gains from the sale of interests in real estate were $8.9 million for the six months ended June 30, 2000 as compared to $1.3 million for the six months ended June 30, 1999. The 2000 period reflects a gain on the sale of interest in Park Plaza Shopping Center in Pinellas Park, FL and the CVS Warehouse and Distribution Center in Alexandria, VA. The 1999 period includes gains on the sale of interests in 135 Commerce Drive, Ft. Washington, PA and an undeveloped land parcel at Crest Plaza in Allentown, PA. Minority interest in the operating partnership increased by $1.5 million to $2.5 million for the six months ended June 30, 2000 as compared to the six months ended June 30, 1999 primarily as a result of higher earnings and 167,500 additional contingent OP units earned under the Contribution Agreement related to the acquisition of The Rubin Organization in 1997. Net income for the six months ended June 30, 2000 increased to $21.5 million from $10.8 million as reported in the comparable period in the prior year. Quarters Ended June 30, 2000 and 1999 Gross revenues from real estate increased by $6.4 million to $28.1 million for the quarter ended June 30, 2000, as compared to the corresponding period in 1999. Retail property revenues increased by $2.1 million. Of this amount $0.4 million is attributable to 1999 acquisitions and properties under development in 1999 now placed in service. $1.6 million in termination fees were received during the 2000 period. The remaining $0.1 million represents an increase for properties owned during both periods. Multifamily revenues increased by $0.7 million for properties owned during both periods due to rental rate increases and higher occupancy rates. Industrial property revenues increased by $4.0 million due to the CVS lease termination fee. Property operating expenses decreased by $0.1 million to $7.4 million for the quarter ended June 30, 2000 as compared to the quarter ended June 30, 1999. Retail property operating expenses decreased by $0.4 million due to $0.1 million related to 1999 acquisitions and properties under development in 1999 now placed in service offset by operating expenses for properties owned during both periods which decreased by $0.5 million due to the recovery of tenant receivable amounts previously reserved in the first quarter of 2000. Multifamily operating expenses increased by $0.3 million due to increased repairs and maintenance, payroll and bad debt expense. Depreciation and amortization increased by $0.4 million to $3.7 million for the quarter ended June 30, 2000 as compared to the quarter ended June 30, 1999. Retail property depreciation increased by $0.2 million, of which $0.1 million is the result of 1999 acquisitions and the new development properties placed in service. Retail depreciation increased by $0.1 million for properties owned during both periods because of a higher asset base. Multifamily depreciation increased by $0.2 million for properties owned during both periods also due to a higher asset base. Interest expense increased by $0.2 million to $5.6 million for the quarter ended June 30, 2000 as compared to the quarter ended June 30, 1999. Interest expense incurred on the newly placed multifamily mortgages resulted in a $0.1 million increase. Interest expense on the credit facility increased by $0.1 million because of higher interest rates during the 2000 period and a higher average amount outstanding during the 2000 period as compared to the 1999 period. Equity in income of partnerships and joint ventures increased by $0.4 million to $1.8 million for the quarter ended June 30, 2000 as compared to the quarter ended June 30, 1999. This is primarily attributable to an increased income from Whitehall Mall which was under redevelopment in the 1999 period. -15- Equity in net loss of PREIT-RUBIN, Inc. for the 2000 period was $1.9 million as compared to $0.9 million in the 1999 period. During the 2000 period, management fees decreased $0.3 million, development fees decreased $0.3 million, and $0.4 million in development costs were written off. Gains from the sale of interests in real estate was $6.6 million for the quarter ended June 30, 2000 resulting the sale of interest in the CVS Warehouse and Distribution Center. There were no properties sold in the corresponding 1999 period. Minority interest in the operating partnership increased by $1.2 million to $1.7 million for the quarter ended June 30, 2000 as compared to the quarter ended June 30, 1999 primarily as a result of higher earnings and 167,500 additional contingent OP units earned under the Contribution Agreement related to the acquisition of The Rubin Organization in 1997. Net income for the quarter ended June 30, 2000 increased to $15.1 million from $4.9 million as reported in the comparable period in the prior year. Acquisitions and Dispositions PREIT is actively involved in pursing and evaluating a number of individual property and portfolio acquisition opportunities. In addition, PREIT has stated that a key strategic goal is to obtain managerial control of all of its assets. In certain cases where existing joint venture assets are managed by outside partners, PREIT is considering the possible acquisition of these outside interests. In certain cases where that opportunity does not exist, PREIT is considering the disposition of its interests. There can be no assurance that PREIT will consummate any such acquisition or disposition. In 2000, PREIT purchased, for $11 million, including the assumption of debt, its partner's 35% interest in the Emerald Point Multifamily Community. PREIT now owns 100% of the property. In 2000, PREIT and an unrelated third-party formed a partnership and purchased the Willow Grove Park shopping center in Willow Grove, Pennsylvania for approximately $140 million. Upon completion of certain investment requirements, including the funding of an expansion of the shopping center, the Company's current 0.01% interest in the partnership that owns the shopping center will increase to a subordinated 50% interest. In 2000, PREIT sold its 50% interest in the Park Plaza shopping center in Pinellas Park, Florida for proceeds of $3 million, resulting in a gain of $2.3 million. In 2000, PREIT sold a 294,000 square foot industrial property in Alexandria, Virginia, for total proceeds of approximately $11.7 million including the sale price of $7.7 million and a lease termination fee with the building's sole tenant for $4 million. The sale of the property resulted in a gain of approximately $6.6 million. In July 2000, PREIT sold the Valley View Shopping Center located in Wilmington, Delaware, for total proceeds of $9.6 million and expects to record a gain of approximately $1.5 million. Development, Expansions and Renovations PREIT is involved in a number of development and redevelopment projects, that may require equity funding by PREIT or third-party debt or equity financing. In each case, PREIT will evaluate the financing opportunities available to it at the time a project requires funding. In cases where the project is undertaken with a joint venture partner, PREIT's flexibility in funding the project may be governed by the joint venture agreement or the covenants existing in its line of credit which limit the use of borrowed funds in joint venture projects. -16- Year 2000 Issue PREIT expended approximately $0.2 million in connection with hardware, software and equipment upgrades and repairs relating to the Year 2000 issue. The Company did not incur any significant interruption of services in connection with the Year 2000, nor does the Company expect to incur any in the future. Forward-Looking Statements The matters discussed in this report, as well as news releases issued from time to time by PREIT include use of forward-looking terminology such as "may," "will," "should," "expect," "anticipate," "estimate," "plan," or "continue" or the negative thereof or other variations thereon, or comparable terminology which constitute "forward-looking statements." Such forward-looking statements (including without limitation, information concerning PREIT's planned acquisition, development and divestiture activities, short- and long-term liquidity position, ability to raise capital through public and private offerings of debt and/or equity securities, availability of adequate funds at reasonable cost, revenues and operating expenses for some or all of the properties, leasing activities, occupancy rates, changes in local market conditions or other competitive factors) involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of PREIT's results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. PREIT disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments. -17- Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK There has been no material change in the net financial instrument position or sensitivity to market risk since December 31, 1999 as reported by PREIT in its Form 10-K for the year ended December 31, 1999. -18- PART II OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders The 2000 Annual Meeting of Holders of Certificates of Beneficial Interest of the Company was held on May 10, 2000. At such meeting, Messrs. Ronald Rubin, Leonard I. Korman and Jeffrey P. Orleans were reelected to the Board of Trustees of the Company to serve for a term ending at the Annual Meeting of Holders of Certificates of Beneficial Interest to be held in the spring of 2003 and until their respective successors are elected and qualified. In such election, 11,734,485 votes were cast for Mr. Rubin, 11,736,708 votes were cast for Mr. Korman, and 11,738,793 votes were cast for Mr. Orleans. Under the Company's Trust Agreement, votes cannot be cast against a candidate. Proxies filed at the 2000 Annual Meeting by holders of 199,501 shares withheld authority to vote for Mr. Rubin, those filed by the holders of 197,278 shares withheld authority to vote for Mr. Korman, and those filed by the holders of 195,193 shares withheld authority to vote for Mr. Orleans. Item 5. Other Information PREIT issued a press release on August 9, 2000 containing financial information for the quarter ended June 30, 2000. A copy of the press release is attached hereto as Exhibit 99. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 27 Financial Data Schedule 99 Press Release, issued August 9, 2000 containing financial information for the quarter ended June 30, 2000. (b) Reports on Form 8-K None -19- SIGNATURE OF REGISTRANT Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PENNSYLVANIA REAL ESTATE INVESTMENT TRUST By /s/ Ronald Rubin ------------------------------------- Ronald Rubin Chief Executive Officer By /s/ Edward A. Glickman ------------------------------------- Edward A. Glickman Executive Vice President and Chief Financial Officer By /s/ Dante J. Massimini ------------------------------------- Dante J. Massimini Senior Vice President and Treasurer (Principal Accounting Officer) -20- Exhibit Index Exhibit Number Description - ------ ----------- 27 Financial Data Schedule 99 Press Release, issued August 9, 2000, containing financial information for the period ended June 30, 2000 -21- EX-27 2 0002.txt FINANCIAL DATA SCHEDULE
5 0000077281 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 1,000 US 6-MOS DEC-31-2000 JAN-01-2000 JUN-30-2000 1 8,897 0 48,980 (528) 0 0 600,614 (90,058) 567,905 53,484 371,615 0 0 13,458 129,348 567,905 51,342 58,431 25,472 0 0 0 11,486 21,473 0 21,473 0 0 0 21,473 1.61 1.61
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