-----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, EywbXYvA92fha/QfUb2cbj7X4WFOBdXPNTM/UiGvUqRJrA2NxNCaTypnL8XQw37j vs97thKPuAqClh4tNiyU+Q== 0000950116-03-004353.txt : 20031107 0000950116-03-004353.hdr.sgml : 20031107 20031107160331 ACCESSION NUMBER: 0000950116-03-004353 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031105 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PENNSYLVANIA REAL ESTATE INVESTMENT TRUST CENTRAL INDEX KEY: 0000077281 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 236216339 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06300 FILM NUMBER: 03985310 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 8-K 1 eightk.txt 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ---------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) November 5, 2003 Pennsylvania Real Estate Investment Trust - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) Pennsylvania 1-6300 23-6216339 - -------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) The Bellevue, 200 S. Broad Street, Philadelphia, Pennsylvania 19102 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (215) 875-0700 - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Item 7. Financial Statements and Exhibits. (c) Exhibits 99.1 Quarterly Supplemental Disclosure (September 30, 2003). Item 12. Results of Operations and Financial Condition. The following information, furnished under "Item 12. Results of Operations and Financial Condition," shall not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing. On November 5, 2003, Pennsylvania Real Estate Investment Trust included Quarterly Supplemental Disclosure for the quarter ended September 30, 2003 on its website at www.preit.com. A copy of the Quarterly Supplemental Disclosure is attached as an exhibit to this report. 2 Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PENNSYLVANIA REAL ESTATE INVESTMENT TRUST Date: November 6, 2003 By: Jonathan B. Weller -------------------------------------- Jonathan B. Weller President and Chief Operating Officer 3 Exhibit Index 99.1 Quarterly Supplemental Disclosure (September 30, 2003). 4 EX-99 3 ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 [LOGO OF PREIT] Pennsylvania Real Estate Investment Trust QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) www.preit.com [LOGO OF PEI LISTED NYSE] Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Table of Contents ----------------- Company Information 1 Timeline/Recent Developments 2 Stock Information 3 Market Capitalization and Capital Resources 4 Balance Sheet--Wholly Owned and JV Detail 5 Balance Sheet--Line of Business 6 Income Statement--Wholly Owned and JV Detail 7 Income Statement--Line of Business 8 Income Statement--Retail (Property Status) 9 Income Statement--Retail (Property Subtype) 10 Income Statement--Multifamily (Property Status) 11 FFO and FAD 12 Key Ratios 13 Property Debt Schedule--Wholly Owned 14 Property Debt Schedule--JV 15 Debt Analysis 16 Debt Ratios 17 Portfolio Summary--Retail Wholly Owned 18 Portfolio Summary--Retail Joint Venture 19 Property Acquisitions/Dispositions 20 Property Development/Redevelopment Summary 21 Top Twenty Tenants Schedule 22 Lease Expiration Schedule - Anchor Tenants 23 Lease Expiration Schedule - Non-Anchor Tenants 24 New Lease/Renewal Summary and Analysis 25 Capital Expenditures 26 Enclosed Mall-Summary and Occupancy 27 Power Center- Summary and Occupancy 28 Strip Center- Summary and Occupancy 29 Retail Overall- Summary and Occupancy 30 Summary of Portfolio Services 31 Flash Report 32 RECONCILIATION TO GAAP: Balance Sheet-Reconciliation to GAAP 33 Income Statement-Reconciliation to GAAP 34 Flash Report-Reconciliation to GAAP 35 Definition page 36 THE INFORMATION SET FORTH HEREIN IS UNAUDITED, PRELIMINARY AND SUBJECT TO ADJUSTMENT WITHOUT FURTHER NOTICE. CERTAIN INFORMATION SET FORTH HEREIN CONSTITUTES FORWARD-LOOKING STATEMENTS, AND THERE ARE FACTORS THAT COULD CAUSE PREIT'S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO DIFFER MATERIALLY FROM THOSE THAT MAY BE CONTAINED IN OR IMPLIED BY ANY SUCH FORWARD-LOOKING STATEMENTS, INCLUDING, WITHOUT LIMITATION, THE ABILITY OF PREIT TO GROW INTERNALLY OR BY ACQUISITION AND TO INTEGRATE ACQUIRED BUSINESSES, THE AVAILABILITY OF ADEQUATE FUNDS AT REASONABLE COST NECESSARY FOR GROWTH AND DEVELOPMENT, CHANGING INDUSTRY AND COMPETITIVE CONDITIONS, AND OTHER RISKS OUTSIDE THE CONTROL OF PREIT REFERRED TO IN PREIT'S REGISTRATION STATEMENTS AND PERIODIC REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) COMPANY INFORMATION [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] PENNSYLVANIA REIT 200 South Broad Street, Philadelphia, PA 19102 http://www.preit.com Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls and power centers (approximately 17.6 million square feet) located in the eastern United States. PREIT's portfolio as of August 11, 2003 consists of 32 properties in 7 states. PREIT's portfolio includes 14 shopping malls, 14 strip and power centers and four industrial properties. In addition, there are two retail properties under development, which PREIT expects will add approximately 0.8 million square feet to its portfolio. On May 14, 2003 Pennsylvania Real Estate Investment Trust and Crown American Realty Trust announced a definitive merger agreement by which Crown will merge into PREIT. PREIT is headquartered in Philadelphia, Pennsylvania. Research Coverage Company Analyst Phone Number - --------------------------------------------------------------------------- Green Street Advisors Gregory R. Andrews (949) 640-8780 Barbara M. Hoogland (949) 640-8780 - --------------------------------------------------------------------------- JP Morgan Michael W. Mueller (212) 622-6689 Anthony Paolone (212) 622-6682 Joshua Bederman (212) 622-6530 - --------------------------------------------------------------------------- Legg Mason Wood Walker David M. Fick (410) 539-0000 - --------------------------------------------------------------------------- Lehman Brothers David Shulman (212) 526-3413 Alexander D. Goldfarb (212) 526-5232 - --------------------------------------------------------------------------- US Bancorp Piper Jaffray Andrew L. Rosivach (212) 284-9304 - --------------------------------------------------------------------------- Quarterly Earnings Schedule PREIT's quarterly results will be announced in accordance with the following schedule: Quarter 2003 2002 - --------------------------------------------------------------------------- First Quarter 5/14/2003 5/2/2002 - --------------------------------------------------------------------------- Second Quarter 8/11/2003 8/8/2002 - --------------------------------------------------------------------------- Third Quarter 11/5/2003 10/31/2002 - --------------------------------------------------------------------------- Fourth Quarter 3/4/2004(1) 3/31/2003 - --------------------------------------------------------------------------- (1) Tentative date. Quarterly conference calls are arranged by KCSA Worldwide. To participate, please contact Todd Fromer at (212) 896-1215. For additional information, please contact: Edward Glickman or Nurit Yaron 200 South Broad Street Philadelphia, PA 19102 (215) 875-0700 Phone (866) 875-0700 Toll Free (215) 546-7311 Fax yaronn@preit.com Email 1 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Time Line/Recent Developments October 28, 2003 - Pennsylvania Real Estate Investment Trust announced that it intends to release its financial results for the third quarter ended September 30, 2003 on Wednesday, November 5, 2003. October 22, 2003 - Pennsylvania Real Estate Investment Trust announced that a new Filene's department store will be added to its 620,000 sf Dartmouth Mall and is anticipated to open in Fall, 2004. October 17, 2003 - Pennsylvania Real Estate Investment Trust announced that its Board of Trustees has approved a quarterly cash dividend of $0.54 per common share, an increase of $0.03 per share, or 5.9%. October 9, 2003 - Pennsylvania Real Estate Investment Trust announced that it will hold a special meeting of shareholders on Thursday, November 11, 2003 at 11:00 a.m. EST. September 25, 2003 - Pennsylvania Real Estate Investment Trust announced that it has completed the sale of its remaining two joint venture multifamily properties. The purchase price was approximately $8.6 million, including assumed debt of $3.4 million, with net proceeds of $5.0 million. The Company is expected to record a gain of approximately $6.4 million in the third quarter of 2003. September 23, 2003 - Pennsylvania Real Estate Investment Trust announced that it has acquired a 6.08 acre parcel adjacent to Plymouth Meeting Mall, Plymouth Meeting, PA from IKEA. September 4, 2003 - Pennsylvania Real Estate Investment Trust announced that it has acquired the remaining 70% interest in Willow Grove Park, Willow Grove, PA from its partner Pennsylvania State Employee Retirement System ("PaSERS") and now owns 100% of the shopping mall. The purchase price was $122.3 million. August 27, 2003 - Pennsylvania Real Estate Investment Trust announced that Lehman Brothers, underwriter of PREIT's recently completed public offering, has exercised in full its over-allotment option to purchase an additional 825,000 common shares at the public offering price of $29.75 per share. the over-allotment option was granted in connection with PREIT's public offering of 5.5 million common shares, which closed on Thursday, August 21, 2003. After payment of an underwriting discount of $0.25 per share and offering expenses, the total net proceeds to PREIT are expected to be approximately $184 million. August 18, 2003 - Pennsylvania Real Estate Investment Trust announced 5.5 million common share offering priced at $29.75. The net proceeds to the Company, after payment of an underwriting discount of $0.25 per share and offering expenses, will be approximately $161 million. August 11, 2003 - Pennsylvania Real Estate Investment Trust announced 2003 second quarter and six months results. July 29, 2003 - Pennsylvania Real Estate Investment Trust announced that it has completed the sale of its remaining two wholly-owned multifamily properties, Emerald Point in Virginia Beach, VA and Regency Lakeside in Omaha, NE, to affiliates of Morgan Properties of King Of Prussia, PA. The purchase price was approximately $81.4 million. In addition, the Board of Trustees has approved a quarterly cash dividend of $0.51 per share. The dividend will be paid on September 15, 2003 to shareholders and unitholders of record on August 29, 2003. PREIT also announced that it intends to release its financial results for the second quarter ended June 30, 2003 before the open of market trading on Monday, August 11, 2003. June 19, 2003 - Pennsylvania Real Estate Investment Trust announced the appointment of John J. Roberts to its Board of Trustees, increasing the number of Trustees from eight to nine. Mr. Roberts, age 58, will stand for re-election to the Board of Trustees at the next meeting of the shareholders. Mr. Roberts was also elected by the Board of Trustees to serve as a member of the Audit and Nominating and Governance Committees. June 5, 2003 - Pennsylvania Real Estate Investment Trust announced that it had completed the acquisition of the remaining two shopping malls shopping malls relating to the Company's agreement, announced on March 6, 2003, to purchase a total of six shopping malls from The Rouse Company. In completing this transaction, PREIT acquired Plymouth Meeting Mall, Plymouth Meeting, PA and Echelon Mall, Voorhees, NJ, totaling approximately 1.96 million square feet of retail space, for an aggregate purchase price of approximately $80.4 million. NOTE: A copy of the press releases are available on the Company's website at www.preit.com. 2 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Stock Information PREIT's common stock trades on the New York Stock Exchange (symbol: PEI).
Q3:9/30/03 Q2:6/30/03 Q1:3/31/03 CY 12/31/02 ------------- ------------- ------------- ------------- High Price 33.45 30.34 28.80 27.20 Low Price 29.80 27.94 24.70 20.55 Close 33.45 29.95 28.65 26.00 Average Daily Trading Volume 96,738 85,567 37,385 41,495 Shares Outstanding at end of period 23,480,595 16,837,304 16,753,614 16,697,119 O.P. Units 2,056,861 2,057,618 1,763,320 1,763,318 ------------- ------------- ------------- ------------- Fully Diluted Shares Outstanding 25,537,456 18,894,922 18,516,934 18,460,437 Weighted Avg. number of shares outstanding 19,488,367 16,615,576 16,544,737 16,162,327 Weighted Avg. effect of full conversion of O.P. units 2,049,112 1,998,708 1,763,320 1,804,779 ------------- ------------- ------------- ------------- Wtd Avg. Shares Outstanding and O.P. Units 21,537,479 18,614,284 18,308,057 17,967,106 Market Value of Shares (based on closing price) $ 854,227,903 $ 565,902,914 $ 530,510,159 $ 479,971,362 ============= ============= ============= ============= Q3:9/30/02 CY 12/31/01 CY 12/31/00 ------------- ------------- ------------- High Price 27.11 25.05 19 3/4 Low Price 20.55 18.25 14 5/8 Close 25.76 23.20 19 1/8 Average Daily Trading Volume 45,425 39,463 24,897 Shares Outstanding at end of period 16,602,761 15,876,084 13,628,448 O.P. Units 1,602,946 1,753,580 1,415,791 ------------- ------------- ------------- Fully Diluted Shares Outstanding 18,205,707 17,629,664 15,044,239 Weighted Avg. number of shares outstanding 16,566,418 14,656,711 13,403,233 Weighted Avg. effect of full conversion of O.P. units 1,738,960 1,869,383 1,573,028 ------------- ------------- ------------- Wtd Avg. Shares Outstanding and O.P. Units 18,305,378 16,526,094 14,976,261 Market Value of Shares (based on closing price) $ 468,979,012 $ 409,008,205 $ 287,721,071 ============= ============= =============
Distribution Information
Q3:9/30/03 Q2:6/30/03 Q1:3/31/03 CY 12/31/02 Q3:9/30/02 CY 12/31/01 CY12/30/00(1) ---------------------------------------------------------------------------------------- Dividend per share (1) $ 0.510 $ 0.510 $ 0.510 $ 2.040 $ 0.510 $ 2.040 $ 1.920 Annualized Dividend Yield (2) 6.1% 6.8% 7.1% 7.8% 7.9% 8.8% 10.0% Capital Gain N/A N/A N/A $ 0.082 $ 0.082 $ 0.110 $ 0.590 Section 1250 Gain N/A N/A N/A $ - $ - $ 0.129 $ 0.190 Return of Capital N/A N/A N/A $ 0.134 $ - $ - $ - Qualified 5 Year Gain (incl. in cap. Gain) N/A N/A N/A $ - $ - $ - $ - Ordinary Income N/A N/A N/A $ 1.824 $ 0.428 $ 1.801 $ 1.140
(1) Dividend per share increased in 4Q 00 from $0.47 to $0.51 ($0.47 x 3 + $0.51 x 1 = $1.92). (2) Based on closing stock price for the period. Shareholder Information Ten Largest Institutional Shareholders: Shares Held (1) 9/30/2003 --------- RREEF Real Estate Securities Advisers, L.P. 1,017,700 The Vanguard Group 720,937 Barclays Global Investors 678,974 Neuberger Berman, LLC 367,700 State Street Global Advisors 281,713 J.P. Morgan Investment Mgmt. Inc. 271,600 Manufacturers Advisers Corporation 259,952 Wachovia Securities 237,552 Kensington Investment Management Inc. 227,700 Stratton Management Company 207,250 TOTAL of Ten Largest Institutional: 4,271,078 TOTAL of all Institutional holders: 7,354,860 Ten Largest as % of Total Institutional: 58.1% (1) Based on 13F filings as of 9/30/03 & 6/30/03. [CHART APPEARS HERE] Breakdown of Share & Unit % of 9/30/03 Ownership: Shares Held 9/30/2003 9/30/2002 total ---------- ---------- ------------ Institutional (1) 7,354,860 3,944,265 28.8% Retail (2) 16,369,287 12,522,881 64.1% Insiders (3) 1,813,309 1,738,561 7.1% ---------- ---------- ------------ TOTAL 25,537,456 18,205,707 100.0% [CHART APPEARS HERE] (1) Based on 13F filings as of 9/30/03 & 6/30/03. (2) Retail ownership equals total shares outstanding minus institutional and insider ownership. (3) Insider holdings as of 9/25/03. (Shares and O.P. Units only. Excludes 544,644 exercisable options).
Share Ownership by Insiders: Shares Held Interim Net (including O.P. Units, Beneficial Ownership Purchases of and Exercisable Options) As of 9/25/03(1) % of Total(2) Shares(3) As of 4/1/03(4) % of Total (5) ------------------ --------------- ------------- ----------------- ---------------- Ronald Rubin 831,262 3.3% 8,892 822,370 4.4% George F. Rubin 414,009 1.6% 10,302 403,707 2.2% Leonard I. Korman 312,785 1.2% - 312,785 1.7% Jonathan B. Weller 179,192 0.7% (43,969) 223,161 1.2% Edward A. Glickman 200,436 0.8% - 200,436 1.1% Joseph F. Coradino 133,204 0.5% (2,792) 135,996 0.7% Jeffrey A. Linn 74,344 0.3% (11,099) 85,443 0.5% Jeffrey P. Orleans 82,748 0.3% - 82,748 0.4% Douglas S. Grayson 55,152 0.2% (6,090) 61,242 0.3% David J. Bryant 23,639 0.1% (3,964) 27,603 0.1% Raymond Trost 17,071 0.1% (4,665) 21,736 0.1% Lee H. Javitch 13,125 0.1% - 13,125 0.1% Bruce Goldman 10,611 0.0% 37 10,574 0.1% Rosemarie B. Greco 7,125 0.0% - 7,125 0.0% Ira Lubert 3,250 0.0% - 3,250 0.0% ------------------ --------------- ------------- ----------------- ---------------- TOTAL 2,357,953 9.2% (53,348) 2,411,301 13.0% ------------------ --------------- ------------- ----------------- ----------------
(1) Source of Insider Ownership: S-4 SEC filing dated October 1, 2003 and Company records. (2) Based on fully diluted shares outstanding as of September 30, 2003. (3) Includes purchases of shares, issuance of restricted stocks awards, issuances of O.P. units, and exercisable options. (4) Source of Insider Ownership: Proxy dated April 30, 2003. Refer to footnotes in proxy for details on beneficial ownership. (5) Based on fully diluted shares outstanding as of March 31, 2003. 3 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) MARKET CAPITALIZATION [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE]
September 30, 2003 June 30, 2003 March 31, 2003 December 31, 2002 ------------------ --------------- --------------- ----------------- EQUITY CAPITALIZATION Shares Outstanding 23,480,595 16,837,304 16,753,614 16,697,119 O.P. Units Outstanding 2,056,861 2,057,618 1,763,320 1,763,318 ------------------ --------------- --------------- ----------------- TOTAL Shares and O.P. Units 25,537,456 18,894,922 18,516,934 18,460,437 Market Price (at end of period) 33.45 29.95 28.65 26.00 Equity Market Capitalization $ 854,227,903 $ 565,902,914 $ 530,510,159 $ 479,971,362 DEBT CAPITALIZATION Unsecured Debt Balance $ 20,249,935 $ - $ - Secured Debt Balance 739,061,360 816,864,718 625,117,601 617,279,770 ------------------ --------------- --------------- ----------------- Debt Capitalization $ 739,061,360 $ 837,114,653 $ 625,117,601 $ 617,279,770 ------------------ --------------- --------------- ----------------- TOTAL MARKET CAPITALIZATION $ 1,593,289,263 $ 1,403,017,567 $ 1,155,627,760 $ 1,097,251,132 ================== =============== =============== ================= September 30, 2002 December 31, 2001 December 31, 2000 ------------------ ----------------- ----------------- EQUITY CAPITALIZATION Shares Outstanding 16,602,761 15,876,084 13,628,448 O.P. Units Outstanding 1,602,946 1,753,580 1,415,791 ------------------ ----------------- ----------------- TOTAL Shares and O.P. Units 18,205,707 17,629,664 15,044,239 Market Price (at end of period) 25.76 23.20 19 1/8 Equity Market Capitalization $ 468,979,012 $ 409,008,205 $ 287,721,071 DEBT CAPITALIZATION Unsecured Debt Balance $ - - $ - Secured Debt Balance 599,413,976 506,175,818 524,782,225 ------------------ ----------------- ----------------- Debt Capitalization $ 599,413,976 $ 506,175,818 $ 524,782,225 ------------------ ----------------- ----------------- TOTAL MARKET CAPITALIZATION $ 1,068,392,988 $ 915,184,023 $ 812,503,296 ================== ================= =================
Debt Capitalization/Total Market Capitalization 46.4% 59.7% 54.1% 56.3% 56.1% 55.3% 64.6% Equity Capitalization/Total Market Capitalization 53.6% 40.3% 45.9% 43.7% 43.9% 44.7% 35.4% Unsecured Debt Balance/Total Debt 0.0% 2.4% 0.0% 0.0% 0.0% 0.0% 0.0%
[CHART APPEARS HERE] CAPITAL RESOURCES
September 30, 2003 June 30, 2003 March 31, 2003 December 31, 2002 ------------------ ------------------ ------------------ ------------------ Cash on Hand $ 43,512,963 $ 15,035,033 $ 14,015,658 $ 18,628,137 Line of Credit Capacity(1) $ 200,000,000 $ 200,000,000 $ 200,000,000 $ 200,000,000 Amount Used (includes letters of credit) (673,671) (118,573,671) (147,573,671) (131,473,671) ------------------ ------------------ ------------------ ------------------ Available LOC(2) $ 199,326,329 $ 81,426,329 $ 52,426,329 $ 68,526,329 Shelf Registration $ 500,000,000 $ 500,000,000 $ 500,000,000 $ 500,000,000 Amount Used (344,146,042) (155,977,292) (155,977,292) (155,977,292) ------------------ ------------------ ------------------ ------------------ Available Shelf $ 155,853,958 $ 344,022,708 $ 344,022,708 $ 344,022,708 ------------------ ------------------ ------------------ ------------------ TOTAL CAPITAL RESOURCES $ 398,693,250 $ 440,484,070 $ 410,464,695 $ 431,177,174 ------------------ ------------------ ------------------ ------------------ September 30, 2002 December 31, 2001 December 31, 2000 ------------------ ------------------ ------------------ Cash on Hand $ 16,130,074 $ 16,242,450 $ 10,594,592 Line of Credit Capacity(1) $ 200,000,000 $ 175,000,000 $ 175,000,000 Amount Used (includes letters of credit) (121,673,671) (100,168,659) (115,873,671) ------------------ ------------------ ------------------ Available LOC(2) $ 78,326,329 $ 74,831,341 $ 59,126,329 Shelf Registration $ 500,000,000 $ 200,000,000 $ 200,000,000 Amount Used (155,977,292) (148,925,000) (102,925,000) ------------------ ------------------ ------------------ Available Shelf $ 344,022,708 $ 51,075,000 $ 97,075,000 ------------------ ------------------ ------------------ TOTAL CAPITAL RESOURCES $ 438,479,111 $ 142,148,791 $ 166,795,921 ------------------ ------------------ ------------------
(1) In connection with its acquisition of the Rouse properties, the Company obtained a $25 million unsecured Line of Credit of which $25 million was available on September 30, 2003. (2) The available line of credit is subject to covenants that may restrict amounts that can be borrowed. 4 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] BALANCE SHEET (Wholly Owned vs. JVs)
September 30, 2003 --------------------------------------------------------------------- PREIT PREIT's % Corporate Combined Wholly Owned of JVs (3) TOTAL --------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties $ 1,143,102,938 $ 146,787,604 - $ 1,289,890,542 Multifamily Properties - - - - Industrial Properties 2,504,211 - - 2,504,211 Construction In Progress 16,110,564 1,563,289 - 17,673,853 --------------- --------------- --------------- --------------- TOTAL INVESTMENTS IN REAL ESTATE 1,161,717,713 148,350,893 - 1,310,068,606 Accumulated Depreciation (60,922,254) (36,454,134) - (97,376,388) --------------- --------------- --------------- --------------- Net Real Estate 1,100,795,459 111,896,759 - 1,212,692,218 --------------- --------------- --------------- --------------- Advances to Partnerships and Joint Ventures - - 1,200,000 1,200,000 --------------- --------------- --------------- --------------- 1,100,795,459 111,896,759 1,200,000 1,213,892,218 --------------- --------------- --------------- --------------- Allowance for Possible Losses - --------------- --------------- --------------- --------------- 1,100,795,459 111,896,759 1,200,000 1,213,892,218 --------------- --------------- --------------- --------------- Other Assets: Cash and Cash Equivalents 10,042,912 5,113,326 28,356,725 43,512,963 Rents and Other Receivables 11,108,819 8,570,389 2,230,635 21,909,843 Intangible Assets 46,915,709 9,041,888 55,957,597 Deferred Costs, Prepaid Taxes & Exp. & Other Assets(1) 32,647,874 12,102,884 8,979,808 53,730,566 --------------- --------------- --------------- --------------- TOTAL OTHER ASSETS 100,715,314 25,786,599 48,609,056 175,110,969 --------------- --------------- --------------- --------------- TOTAL ASSETS 1,201,510,773 137,683,358 49,809,056 1,389,003,187 =============== =============== =============== =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 620,535,498 118,525,862 - 739,061,360 Bank Loans Payable - - - - Acquisition Term Loan &Unsecured Line of Credit - - - - Assets held for sale 915,292 36,458 - 951,750 Other Liabilities(2) 25,504,728 4,429,363 12,458,923 42,393,014 --------------- --------------- --------------- --------------- TOTAL LIABILITIES 646,955,518 122,991,683 12,458,923 782,406,124 --------------- --------------- --------------- --------------- Minority Interest 5,991,467 - 58,270,123 64,261,590 --------------- --------------- --------------- --------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - 23,480,595 23,480,595 Capital Contributed in Excess of Par - - 407,738,529 407,738,529 Restricted Stock - - (3,901,106) (3,901,106) Other Comprehensive Income - - (1,928,590) (1,928,590) Retained Earnings (Distributions in Excess of Net Income) - - 116,946,045 116,946,045 --------------- --------------- --------------- --------------- TOTAL SHAREHOLDERS' EQUITY - - 542,335,473 542,335,473 --------------- --------------- --------------- --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 652,946,985 $ 122,991,683 $ 613,064,519 $ 1,389,003,187 =============== =============== =============== =============== December 31, 2002 --------------------------------------------------------------------- PREIT PREIT's % Corporate Combined Wholly Owned of JVs (3) TOTAL --------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties $ 423,046,545 $ 197,299,357 - $ 620,345,902 Multifamily Properties 290,606,714 14,728,865 - 305,335,579 Industrial Properties 2,504,211 - - 2,504,211 Construction In Progress 23,271,863 1,554,110 - 24,825,973 --------------- --------------- --------------- --------------- TOTAL INVESTMENTS IN REAL ESTATE 739,429,333 213,582,332 - 953,011,665 Accumulated Depreciation (136,733,257) (43,759,779) - (180,493,036) --------------- --------------- --------------- --------------- Net Real Estate 602,696,076 169,822,553 - 772,518,629 --------------- --------------- --------------- --------------- Advances to Partnerships and Joint Ventures - - 105,309 105,309 --------------- --------------- --------------- --------------- 602,696,076 169,822,553 105,309 772,623,938 --------------- --------------- --------------- --------------- Allowance for Possible Losses - - - --------------- --------------- --------------- --------------- 602,696,076 169,822,553 105,309 772,623,938 --------------- --------------- --------------- --------------- Other Assets: Cash and Cash Equivalents 7,342,523 5,075,355 6,210,259 18,628,137 Rents and Other Receivables 8,847,093 10,122,016 4,395,970 23,365,079 Intangible Assets 16,679,886 16,679,886 Deferred Costs, Prepaid Taxes & Exp. & Other Assets(1) 18,306,800 13,981,793 13,822,873 46,111,466 --------------- --------------- --------------- --------------- TOTAL OTHER ASSETS 34,496,416 29,179,164 41,108,988 104,784,568 --------------- --------------- --------------- --------------- TOTAL ASSETS 637,192,492 199,001,717 41,214,297 877,408,506 =============== =============== =============== =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 319,751,324 166,728,446 - 486,479,770 Bank Loans Payable 119,229,707 11,570,293 - 130,800,000 Acquisition Term Loan &Unsecured Line of Credit - - - - Assets held for sale - - - - Other Liabilities(2) 17,687,633 7,016,897 14,939,232 39,643,762 --------------- --------------- --------------- --------------- TOTAL LIABILITIES 456,668,664 185,315,636 14,939,232 656,923,532 --------------- --------------- --------------- --------------- Minority Interest 126,715 - 32,345,722 32,472,437 --------------- --------------- --------------- --------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - 16,697,117 16,697,117 Capital Contributed in Excess of Par - - 216,768,855 216,768,855 Restricted Stock - - (2,513,191) (2,513,191) Other Comprehensive Income - - (4,365,728) (4,365,728) Retained Earnings (Distributions in Excess of Net Income) - - (38,574,516) (38,574,516) --------------- --------------- --------------- --------------- TOTAL SHAREHOLDERS' EQUITY - - 188,012,537 188,012,537 --------------- --------------- --------------- --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 456,795,379 $ 185,315,636 $ 235,297,491 $ 877,408,506 =============== =============== =============== =============== September 30, 2002 --------------------------------------------------------------------- PREIT PREIT's % Corporate Combined Wholly Owned of JVs (3) TOTAL --------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties $ 416,972,101 $ 197,652,779 - $ 614,624,880 Multifamily Properties 258,060,404 29,314,705 - 287,375,109 Industrial Properties 2,504,211 - - 2,504,211 Construction In Progress 20,368,671 1,549,224 - 21,917,895 --------------- --------------- --------------- --------------- TOTAL INVESTMENTS IN REAL ESTATE 697,905,387 228,516,708 - 926,422,095 Accumulated Depreciation (122,830,103) (46,658,613) - (169,488,716) --------------- --------------- --------------- --------------- Net Real Estate 575,075,284 181,858,095 - 756,933,379 --------------- --------------- --------------- --------------- Advances to Partnerships and Joint Ventures - - 418,851 418,851 --------------- --------------- --------------- --------------- 575,075,284 181,858,095 418,851 757,352,230 --------------- --------------- --------------- --------------- Allowance for Possible Losses - - - --------------- --------------- --------------- --------------- 575,075,284 181,858,095 418,851 757,352,230 --------------- --------------- --------------- --------------- Other Assets: Cash and Cash Equivalents 4,869,618 5,974,345 5,286,111 16,130,074 Rents and Other Receivables 6,706,233 8,035,546 2,409,979 17,151,758 Intangible Assets 16,679,886 16,679,886 Deferred Costs, Prepaid Taxes & Exp. & Other Assets(1) 17,086,911 14,264,376 11,084,716 42,436,003 --------------- --------------- --------------- --------------- TOTAL OTHER ASSETS 28,662,762 28,274,267 35,460,692 92,397,721 --------------- --------------- --------------- --------------- TOTAL ASSETS 603,738,046 210,132,362 35,879,543 849,749,951 =============== =============== =============== =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 301,994,045 176,919,931 - 478,913,976 Bank Loans Payable 111,429,707 9,070,293 120,500,000 Acquisition Term Loan &Unsecured Line of Credit - - - - Assets held for sale - - - - Other Liabilities(2) 13,879,717 7,139,609 10,414,992 31,434,318 --------------- --------------- --------------- --------------- TOTAL LIABILITIES 427,303,469 193,129,833 10,414,992 630,848,294 --------------- --------------- --------------- --------------- Minority Interest 126,715 - 31,755,163 31,881,878 --------------- --------------- --------------- --------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - 16,602,759 16,602,759 Capital Contributed in Excess of Par - - 214,543,587 214,543,587 Restricted Stock - - (3,147,772) (3,147,772) Other Comprehensive Income - - (3,486,703) (3,486,703) Retained Earnings (Distributions in Excess of Net Income) - - (37,492,092) (37,492,092) --------------- --------------- --------------- --------------- TOTAL SHAREHOLDERS' EQUITY - - 187,019,779 187,019,779 --------------- --------------- --------------- --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 427,430,184 $ 193,129,833 $ 229,189,934 $ 849,749,951 =============== =============== =============== ===============
(1) Deferred Costs, Prepaid Taxes and Expenses and Other Assets include Rents and Other Receivables for Partnerships and Joint Ventures. (2) For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses and Other Liabilities. (3) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's share of the Total Assets and Liabilities of the underlying properties. The Company calculates the "gross up" by applying its percentage ownership interest to the historical financial statements of its equity method investments. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Trust's Equity in these properties. NOTE: Reconciliation to GAAP is on pages 33 to 36. 5 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE]
BALANCE SHEET (1) (Line of Business) September 30, 2003 ----------------------------------------------------------------------------- Other Retail Multifamily Properties Corporate Combined TOTAL --------------- ------------- ------------- ------------- --------------- ASSETS Investments in Real Estate, at cost $ 1,289,890,542 $ - $ 20,178,064 $ - $ 1,310,068,606 =============== ============= ============= ============= =============== Accumulated Depreciation (95,312,157) - (2,064,231) - (97,376,388) =============== ============= ============= ============= =============== Net Real Estate 1,194,578,385 - 18,113,833 - 1,212,692,218 =============== ============= ============= ============= =============== Investments in PREIT-RUBIN Advances to Partnerships and Joint Ventures - - - 1,200,000 1,200,000 Advances to PREIT-RUBIN --------------- ------------- ------------- ------------- --------------- 1,194,578,385 - 18,113,833 1,200,000 1,213,892,218 --------------- ------------- ------------- ------------- --------------- Allowance for Possible Losses - - - - - --------------- ------------- ------------- ------------- --------------- 1,194,578,385 - 18,113,833 1,200,000 1,213,892,218 --------------- ------------- ------------- ------------- --------------- Other Assets: Cash 14,448,465 707,773 28,356,725 43,512,963 Intangible Assets 46,915,709 9,041,888 55,957,597 Other Assets, Net (2) 53,567,903 469,242 10,392,821 11,210,443 75,640,409 --------------- ------------- ------------- ------------- --------------- Total Other Assets 114,932,077 1,177,015 10,392,821 48,609,056 175,110,969 --------------- ------------- ------------- ------------- --------------- TOTAL ASSETS 1,309,510,462 1,177,015 28,506,654 49,809,056 1,389,003,187 =============== ============= ============= ============= =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 739,061,360 - - - 739,061,360 Bank Loans Payable - - - Acquisition Term Loan & Unsecured Line of Credit - - - - - Assets held for sale - 951,750 - - 951,750 Other Liabilities (3) 27,237,935 2,696,156 12,458,923 42,393,014 --------------- ------------- ------------- ------------- --------------- TOTAL LIABILITIES 766,299,295 951,750 2,696,156 12,458,923 782,406,124 --------------- ------------- ------------- ------------- --------------- Minority Interest 5,991,467 - - 58,270,123 64,261,590 --------------- ------------- ------------- ------------- --------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - - 23,480,595 23,480,595 Capital Contributed in Excess of Par - - - 407,738,529 407,738,529 Restricted Stock - - - (3,901,106) (3,901,106) Other Comprehensive Income - - - (1,928,590) (1,928,590) Retained Earnings (Distributions in Excess of Net Income) - - - 116,946,045 116,946,045 --------------- ------------- ------------- ------------- --------------- TOTAL SHAREHOLDERS' EQUITY - - - 542,335,473 542,335,473 --------------- ------------- ------------- ------------- --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 772,290,762 $ 951,750 $ 2,696,156 $ 613,064,519 $ 1,389,003,187 =============== ============= ============= ============= =============== BALANCE SHEET (1) (Line of Business) December 31, 2002 ----------------------------------------------------------------------------- Other Retail Multifamily Properties Corporate Combined TOTAL --------------- ------------- ------------- ------------- --------------- ASSETS Investments in Real Estate, at cost $ 620,345,902 $ 305,335,579 $ 27,330,184 $ - $ 953,011,665 =============== ============= ============= ============= =============== Accumulated Depreciation (79,121,149) (99,346,274) (2,025,613) - (180,493,036) =============== ============= ============= ============= =============== Net Real Estate 541,224,753 205,989,305 25,304,571 - 772,518,629 =============== ============= ============= ============= =============== Investments in PREIT-RUBIN Advances to Partnerships and Joint Ventures - - - 105,309 105,309 Advances to PREIT-RUBIN --------------- ------------- ------------- ------------- --------------- 541,224,753 205,989,305 25,304,571 105,309 772,623,938 --------------- ------------- ------------- ------------- --------------- Allowance for Possible Losses - - - - - --------------- ------------- ------------- ------------- --------------- 541,224,753 205,989,305 25,304,571 105,309 772,623,938 --------------- ------------- ------------- ------------- --------------- Other Assets: Cash 8,812,330 3,629,864 (24,316) 6,210,259 18,628,137 Intangible Assets 16,679,886 16,679,886 Other Assets, Net (2) 42,129,659 9,098,594 29,449 18,218,843 69,476,545 --------------- ------------- ------------- ------------- --------------- Total Other Assets 50,941,989 12,728,458 5,133 41,108,988 104,784,568 --------------- ------------- ------------- ------------- --------------- TOTAL ASSETS 592,166,742 218,717,763 25,309,704 41,214,297 877,408,506 =============== ============= ============= ============= =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 280,092,311 206,387,459 - - 486,479,770 Bank Loans Payable 94,712,082 2,500,000 33,587,919 - 130,800,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Assets held for sale - - - - - Other Liabilities (3) 14,288,005 5,270,638 5,145,887 14,939,232 39,643,762 --------------- ------------- ------------- ------------- --------------- TOTAL LIABILITIES 389,092,398 214,158,097 38,733,806 14,939,232 656,923,532 --------------- ------------- ------------- ------------- --------------- Minority Interest 126,715 - 32,345,722 32,472,437 --------------- ------------- ------------- ------------- --------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - - 16,697,117 16,697,117 Capital Contributed in Excess of Par - - - 216,768,855 216,768,855 Restricted Stock - - - (2,513,191) (2,513,191) Other Comprehensive Income - - - (4,365,728) (4,365,728) Retained Earnings (Distributions in Excess of Net Income) - - - (38,574,516) (38,574,516) --------------- ------------- ------------- ------------- --------------- TOTAL SHAREHOLDERS' EQUITY - - - 188,012,537 188,012,537 --------------- ------------- ------------- ------------- --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 389,219,113 $ 214,158,097 $ 38,733,806 $ 235,297,491 $ 877,408,506 =============== ============= ============= ============= =============== BALANCE SHEET (1) (Line of Business) September 30, 2002 ----------------------------------------------------------------------------- Other Retail Multifamily Properties Corporate Combined TOTAL --------------- ------------- ------------- ------------- --------------- ASSETS Investments in Real Estate, at cost $ 614,624,880 $ 287,375,109 $ 24,422,106 $ - $ 926,422,095 =============== ============= ============= ============= =============== Accumulated Depreciation (74,726,868) (92,749,150) (2,012,698) - (169,488,716) =============== ============= ============= ============= =============== Net Real Estate 539,898,012 194,625,959 22,409,408 - 756,933,379 =============== ============= ============= ============= =============== Investments in PREIT-RUBIN Advances to Partnerships and Joint Ventures - - - 418,851 418,851 Advances to PREIT-RUBIN --------------- ------------- ------------- ------------- --------------- 539,898,012 194,625,959 22,409,408 418,851 757,352,230 --------------- ------------- ------------- ------------- --------------- Allowance for Possible Losses - - - - - --------------- ------------- ------------- ------------- --------------- 539,898,012 194,625,959 22,409,408 418,851 757,352,230 --------------- ------------- ------------- ------------- --------------- Other Assets: Cash 8,292,498 2,557,277 (5,812) 5,286,111 16,130,074 Intangible Assets 16,679,886 16,679,886 Other Assets, Net (2) 37,988,110 8,071,073 33,883 13,494,695 59,587,761 --------------- ------------- ------------- ------------- --------------- Total Other Assets 46,280,608 10,628,350 28,071 35,460,692 92,397,721 --------------- ------------- ------------- ------------- --------------- TOTAL ASSETS 586,178,620 205,254,309 22,437,479 35,879,543 849,749,951 =============== ============= ============= ============= =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 281,212,563 197,701,413 - - 478,913,976 Bank Loans Payable 87,952,970 - 32,547,030 120,500,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Assets held for sale - - - - - Other Liabilities (3) 12,095,668 8,776,694 146,964 10,414,992 31,434,318 --------------- ------------- ------------- ------------- --------------- TOTAL LIABILITIES 381,261,201 206,478,107 32,693,994 10,414,992 630,848,294 --------------- ------------- ------------- ------------- --------------- Minority Interest 126,715 - 31,755,163 31,881,878 --------------- ------------- ------------- ------------- --------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - - 16,602,759 16,602,759 Capital Contributed in Excess of Par - - - 214,543,587 214,543,587 Restricted Stock - - - (3,147,772) (3,147,772) Other Comprehensive Income - - - (3,486,703) (3,486,703) Retained Earnings (Distributions in Excess of Net Income) - - - (37,492,092) (37,492,092) --------------- ------------- ------------- ------------- --------------- TOTAL SHAREHOLDERS' EQUITY - - - 187,019,779 187,019,779 --------------- ------------- ------------- ------------- --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 381,387,916 $ 206,478,107 $ 32,693,994 $ 229,189,934 $ 849,749,951 =============== ============= ============= ============= ===============
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's share of the Total Assets and Liabilities of the underlying properties. The Company calculates the "gross up" by applying its percentage ownership interest to the historical financial statements of its equity method investments. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Trust's Equity in these properties. (2) Deferred Costs, Prepaid Taxes and Expenses and Other Assets include Rents and Other Receivables for Partnerships and Joint Ventures. (3) For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses and Other Liabilities. NOTE: Reconciliation to GAAP is on pages 33 to 36. 6 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] INCOME STATEMENT (1)(2) QUARTERLY COMPARISON
(Wholly Owned vs. JV) Q3 03 (3 months ended 9/30/03) --------------------------------------------------------------------------- Wholly Owned JVs Corporate Combined TOTAL -------------------- ------------------ ----------------- ------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ 29,575,266 $ 6,479,632 $ - 36,054,898 Straight-Lining of Base Rents 685,050 80,188 - 765,238 Percentage Rents 469,398 75,212 - 544,610 Lease Termination 29,393 - - 29,393 Expense Recoveries & Other Income 14,205,933 2,321,149 - 16,527,082 -------------------- ------------------ ----------------- ------------- TOTAL REVENUES 44,965,040 83% 8,956,181 17% $ - 0% 53,921,221 -------------------- ------------------ ----------------- ------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 13,387,558 2,480,268 - 15,867,826 Real Estate Taxes 4,768,784 807,631 - 5,576,415 Minority Interest in Properties 310,751 - 310,751 -------------------- ------------------ ----------------- ------------- TOTAL EXPENSES 18,467,093 85% 3,287,899 15% - 0% 21,754,992 -------------------- ------------------ ----------------- ------------- NET OPERATING INCOME 26,497,947 82% 5,668,282 18% - 0% 32,166,229 ==================== ================== ================= ============= OTHER INCOME (EXPENSES) Management Company Revenue - - 1,972,607 1,972,607 Interest Income - - 217,023 217,023 General & Administrative: Corporate Payroll - - (3,707,416) (3,707,416) Other G&A Expenses - - (4,615,793) (4,615,793) -------------------- ------------------ ----------------- ------------- Earnings before interest expenses, taxes, depreciation and amortization 26,497,947 102% 5,668,282 22% (6,133,579) -24% 26,032,650 -------------------- ------------------ ----------------- ------------- Interest Expense (3) (8,314,940) (3,150,646) - (11,465,586) Depreciation & Amortization (9,191,800) (1,034,646) - (10,226,446) -------------------- ------------------ ----------------- ------------- TOTAL OTHER INCOME (EXPENSES) (17,506,740) (4,185,292) - (21,692,032) -------------------- ------------------ ----------------- ------------- Gains (losses) on sales of interests in Real Estate - 6,228,839 - 6,228,839 -------------------- ------------------ ----------------- ------------- Income before Minority Interest 8,991,207 7,711,829 (6,133,579) 10,569,457 -------------------- ------------------ ----------------- ------------- Minority Interest of O.P. Unitholders - - (989,253) (989,253) -------------------- ------------------ ----------------- ------------- Income from Operations 8,991,207 7,711,829 (7,122,832) 9,580,204 -------------------- ------------------ ----------------- ------------- Discontinued Operations: Income from Disposed Real Estate - - Minority Interest of O.P. Unitholders (2,382,461) (2,382,461) Gain (losses) on Disposition of Discontinued Operations 27,725,759 27,725,759 -------------------- ------------------ ----------------- ------------- TOTAL DISCONTINUED OPERATIONS 27,725,759 - (2,382,461) 25,343,298 -------------------- ------------------ ----------------- ------------- Extraordinary item(Loss on early extinguishment of debt) - - -------------------- ------------------ ----------------- ------------- NET INCOME $ 36,716,966 105% $ 7,711,829 22% $ (9,505,293) -27% $ 34,923,502 ==================== ================== ================= ============= Q3 02 (3 months ended 9/30/02) ------- --------------------------------------------------------------------- TOTAL % Combined CHANGE Wholly Owned JVs Corporate TOTAL ------- ------------------ ---------------- ---------------- ------------ REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) 13.4% $ 23,747,649 $ 8,038,742 $ - $ 31,786,391 Straight-Lining of Base Rents 189.6% 182,922 81,350 - 264,272 Percentage Rents 33.5% 333,666 74,135 - 407,801 Lease Termination -93.1% 426,234 - - 426,234 Expense Recoveries & Other Income 133.9% 4,399,433 2,666,190 - 7,065,623 ------- ------------------ ---------------- ----------------- ------------ TOTAL REVENUES 35.0% 29,089,904 73% 10,860,417 27% $ - 0% 39,950,321 ------- ------------------ ---------------- ----------------- ------------ REAL ESTATE OPERATING EXPENSES Operating and Maintenance 55.2% 7,393,021 2,831,965 - 10,224,986 Real Estate Taxes 71.8% 2,352,479 894,273 - 3,246,752 Minority Interest in Properties ------- ------------------ ---------------- ----------------- ------------ TOTAL EXPENSES 61.5% 9,745,500 72% 3,726,238 28% - 0% 13,471,738 ------- ------------------ ---------------- ----------------- ------------ NET OPERATING INCOME 21.5% 19,344,404 73% 7,134,179 27% - 0% 26,478,583 ======= ================== ================ ================= ============ OTHER INCOME (EXPENSES) Management Company Revenue -19.3% - - 2,443,592 2,443,592 Interest Income 50.7% - - 144,042 144,042 General & Administrative: Corporate Payroll 0.3% - - (3,695,921) (3,695,921) Other G&A Expenses 83.4% - - (2,516,173) (2,516,173) ------- ------------------ ---------------- ----------------- ------------ Earnings before interest expenses, taxes, depreciation and amortization 13.9% 19,344,404 85% 7,134,179 31% (3,624,460) -16% 22,854,123 ------- ------------------ ---------------- ----------------- ------------ Interest Expense (3) 8.2% (6,969,540) (3,630,872) - (10,600,412) Depreciation & Amortization 39.2% (5,375,512) (1,971,087) (7,346,599) ------- ------------------ ---------------- ----------------- ------------ TOTAL OTHER INCOME (EXPENSES) 20.9% (12,345,052) (5,601,959) - (17,947,011) ------- ------------------ ---------------- ----------------- ------------ Gains (losses) on sales of interests in Real Estate N/A - - - ------- ------------------ ---------------- ----------------- ------------ Income before Minority Interest 115.4% 6,999,352 1,532,220 (3,624,460) 4,907,112 ------- ------------------ ---------------- ----------------- ------------ Minority Interest of O.P. Unitholders 297.4% - - (248,916) (248,916) ------- ------------------ ---------------- ----------------- ------------ Income from Operations 105.7% 6,999,352 1,532,220 (3,873,376) 4,658,196 ------- ------------------ ---------------- ----------------- ------------ Discontinued Operations: Income from Disposed Real Estate N/A 71,772 - - 71,772 Minority Interest of O.P. Unitholders N/A (637,292) (637,292) Gain (losses) on Disposition of Discontinued Operations N/A 4,085,164 4,085,164 ------- ------------------ ---------------- ----------------- ------------ TOTAL DISCONTINUED OPERATIONS N/A 4,156,936 (637,292) 3,519,644 ------- ------------------ ---------------- ----------------- ------------ Extraordinary item(Loss on early extinguishment of debt) N/A - - - - ------- ------------------ ---------------- ----------------- ------------ NET INCOME 327.1% $ 11,156,288 136% $ 1,532,220 19% $ (4,510,668) -55% $ 8,177,840 ======= ================== ================ ================= ============
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's share of the Total Revenues and Expenses of the underlying properties. The Company calculates the "gross up" by applying its percentage ownership interest to the historical financial statements of its equity method investments. (2) Prior period income and expenses have been restated to adjust for discontinued operations. (3) Capitalized interest expense for the line of credit and construction loans of $324,187 not included in the quarter ended 9/30/03 and $374,570 not included in the quarter ended 9/30/02. NOTE: Reconciliation to GAAP is on pages 33 to 36. 7 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] INCOME STATEMENT (1) (2) QUARTERLY COMPARISON (Line of Business)
Q3 03 (3 months ended 9/30/03) ------------------------------------------------------------------------------------------ OTHER Combined RETAIL MULTIFAMILY PROPERTIES CORPORATE TOTAL ------------------- ---------------- ------------- ------------------ ------------- REAL ESTATE OPERATING REVENUES Base Rents $ 34,709,773 $ 1,336,316 $ 85,156 $ - $ 36,131,245 Less Vacancies and Concessions (76,347) - - (76,347) Straight-Lining of Base Rents 765,238 - - - 765,238 Percentage Rents 544,610 - - - 544,610 Lease Termination 27,129 2,264 - - 29,393 Expense Recoveries and Other Income 16,455,114 69,343 2,625 - 16,527,082 ------------------- ---------------- ------------- ------------------ ------------- TOTAL REVENUES 52,501,864 97% 1,331,576 2% 87,781 0% - - 53,921,221 ------------------- ---------------- ------------- ------------------ ------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 15,228,530 636,314 2,982 - 15,867,826 Real Estate Taxes 5,499,341 76,172 902 - 5,576,415 Minority Interest in Properties 310,751 - - - 310,751 ------------------- ---------------- ------------- ------------------ ------------- TOTAL EXPENSES 21,038,622 97% 712,486 3% 3,884 0% - - 21,754,992 =================== ================ ============= ================== ============= NET OPERATING INCOME 31,463,242 98% 619,090 2% 83,897 0% - - 32,166,229 =================== ================ ============= ================== ============= TOTAL OTHER INCOME (EXPENSES) Management Company Revenue - - - 1,972,607 1,972,607 Interest Income - - - 217,023 217,023 General and Administrative: Corporate Payroll - - - (3,707,416) (3,707,416) Other General & Administrative - - - (4,615,793) (4,615,793) =================== ================ ============= ================== ============= Earnings before interest expenses, taxes, depreciation and amortization 31,463,242 121% 619,090 2% 83,897 0% (6,133,579) -24% 26,032,650 =================== ================ ============= ================== ============= Interest Expense (3) (11,243,044) (222,542) - - (11,465,586) Depreciation & Amortization (10,213,658) - (12,788) - (10,226,446) ------------------- ---------------- ------------- ------------------ ------------- TOTAL OTHER INCOME (EXPENSES) (21,456,702) (222,542) (12,788) - (21,692,032) ------------------- ---------------- ------------- ------------------ ------------- Gains(losses) on sales of interests in Real Estate - 6,228,839 - - 6,228,839 ------------------- ---------------- ------------- ------------------ ------------- Income before Minority Interest 10,006,540 6,625,387 71,109 (6,133,579) 10,569,457 ------------------- ---------------- ------------- ------------------ ------------- Minority Interest of O.P. Unitholders - - - (989,253) (989,253) ------------------- ---------------- ------------- ------------------ ------------- Income from Operations 10,006,540 6,625,387 71,109 (7,122,832) 9,580,204 ------------------- ---------------- ------------- ------------------ ------------- Discontinued Operations: Income from Disposed Real Estate - - - - - Minority Interest of O.P. Unitholders (2,382,461) (2,382,461) Gain (losses) on Disposition of Discontinued Operations 27,725,759 27,725,759 ------------------- ---------------- ------------- ------------------ ------------- TOTAL DISCONTINUED OPERATIONS - 27,725,759 - (2,382,461) 25,343,298 ------------------- ---------------- ------------- ------------------ ------------- Extraordinary item (Loss on early extinguishment of debt) - - - - ------------------- ---------------- ------------- ------------------ ------------- NET INCOME $ 10,006,540 29% $ 34,351,146 98% $ 71,109 0% $ (9,505,293) -27% $ 34,923,502 =================== ================ ============= ================== ============= TOTAL % CHANGE ------- REAL ESTATE OPERATING REVENUES Base Rents 9.2% Less Vacancies and Concessions -94.1% Straight-Lining of Base Rents 189.6% Percentage Rents 33.5% Lease Termination -93.1% Expense Recoveries and Other Income 133.9% ------- TOTAL REVENUES 35.0% ------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 55.2% Real Estate Taxes 71.8% Minority Interest in Properties ------- TOTAL EXPENSES 61.5% ======= NET OPERATING INCOME 21.5% ======= TOTAL OTHER INCOME (EXPENSES) Management Company Revenue -19.3% Interest Income 50.7% General and Administrative: Corporate Payroll 0.3% Other General & Administrative 83.4% ======= Earnings before interest expenses, taxes, depreciation and amortization 13.9% ======= Interest Expense (3) 8.2% Depreciation & Amortization 39.2% ------- TOTAL OTHER INCOME (EXPENSES) 20.9% ------- Gains(losses) on sales of interests in Real Estate N/A ------- Income before Minority Interest 17.5% ------- Minority Interest of O.P. Unitholders -297.4% ------- Income from Operations -9.6% ------- Discontinued Operations: Income from Disposed Real Estate N/A Minority Interest of O.P. Unitholders N/A Gain (losses) on Disposition of Discontinued Operations N/A ------- TOTAL DISCONTINUED OPERATIONS N/A ------- Extraordinary item (Loss on early extinguishment of debt) N/A ------- NET INCOME 327.1% ======= Q3 02 (3 months ended 9/30/02) ------------------------------------------------------------------------------------------- OTHER Combined RETAIL MULTIFAMILY PROPERTIES CORPORATE TOTAL ------------------- ----------------- ------------- ------------------ ------------- REAL ESTATE OPERATING REVENUES Base Rents $ 18,103,363 $ 14,888,499 $ 83,421 $ - $ 33,075,283 Less Vacancies and Concessions - (1,288,892) - - (1,288,892) Straight-Lining of Base Rents 264,272 - - - 264,272 Percentage Rents 407,801 - - - 407,801 Lease Termination 345,048 81,186 - 426,234 Expense Recoveries and Other Income 6,328,771 737,415 (563) - 7,065,623 ------------------- ----------------- ------------ ------------------ ------------- TOTAL REVENUES 25,449,255 64% 14,418,208 36% 82,858 0% - - 39,950,321 ------------------- ----------------- ------------ ------------------ ------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 5,324,904 4,890,938 9,144 - 10,224,986 Real Estate Taxes 1,877,789 1,368,066 897 - 3,246,752 Minority Interest in Properties ------------------- ----------------- ------------ ------------------ ------------- TOTAL EXPENSES 7,202,693 53% 6,259,004 46% 10,041 0% - - 13,471,738 =================== ================= ============ ================== ============= NET OPERATING INCOME 18,246,562 69% 8,159,204 31% 72,817 0% - - 26,478,583 =================== ================= ============ ================== ============= TOTAL OTHER INCOME (EXPENSES) Management Company Revenue - - - 2,443,592 2,443,592 Interest Income - - - 144,042 144,042 General and Administrative: - - Corporate Payroll - - - (3,695,921) (3,695,921) Other General & Administrative - - - (2,516,173) (2,516,173) =================== ================= ============ ================== ============= Earnings before interest expenses, taxes, depreciation and amortization 18,246,562 80% 8,159,204 36% 72,817 0% (3,624,460) -16% 22,854,123 =================== ================= ============ ================== ============= Interest Expense (3) (7,075,154) (3,525,258) - - (10,600,412) Depreciation & Amortization (5,021,188) (2,312,496) (12,915) - (7,346,599) ------------------- ----------------- ------------ ------------------ ------------- TOTAL OTHER INCOME (EXPENSES) (12,096,342) (5,837,754) (12,915) - (17,947,011) ------------------- ----------------- ------------ ------------------ ------------- Gains(losses) on sales of interests in Real Estate 4,085,164 - - - 4,085,164 ------------------- ----------------- ------------ ------------------ ------------- Income before Minority Interest 10,235,384 2,321,450 59,902 (3,624,460) 8,992,276 ------------------- ----------------- ------------ ------------------ ------------- Minority Interest of O.P. Unitholders - - - (248,916) (248,916) ------------------- ----------------- ------------ ------------------ ------------- Income from Operations 10,235,384 2,321,450 59,902 (3,873,376) 8,743,360 ------------------- ----------------- ------------ ------------------ ------------- Discontinued Operations: Income from Disposed Real Estate 71,772 - - - 71,772 Minority Interest of O.P. Unitholders (637,292) (637,292) Gain (losses) on Disposition of Discontinued Operations - - ------------------- ----------------- ------------ ------------------ ------------- TOTAL DISCONTINUED OPERATIONS 71,772 - - (637,292) (565,520) ------------------- ----------------- ------------ ------------------ ------------- Extraordinary item (Loss on early extinguishment of debt) - - - - - ------------------- ----------------- ------------ ------------------ ------------- NET INCOME $ 10,307,156 126% $ 2,321,450 28% $ 59,902 1% $ (4,510,668) -55% $ 8,177,840 =================== ================= ============ ================== =============
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's share of the Total Revenues and Expenses of the underlying properties. The Company calculates the "gross up" by applying its percentage ownership interest to the historical financial statements of its equity method investments. (2) Prior period income and expenses have been restated to adjust for discontinued operations. (3) Capitalized interest expense for the line of credit and construction loans of $324,187 not included in the quarter ended 9/30/03 and $374,570 not included in the quarter ended 9/30/02. NOTE: Reconciliation to GAAP is on pages 33 to 36. 8 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] RETAIL INCOME STATEMENT (1) QUARTERLY COMPARISON (Property Status)
Q3 03 (3 months ended 9/30/03) ------------------------------------------------- Combined TOTAL WO JVs ------------- ------------------ ------------ R.E. OPERATING REVENUES Base Rents $ 34,709,773 $ 28,561,011 $ 6,148,762 Straight-Lining of Base Rents 765,238 685,050 80,188 Percentage Rents 544,610 469,398 75,212 Lease Termination and Other Income 27,129 27,129 - Exp. Recoveries and Other Income 16,455,114 14,141,781 2,313,333 ------------- ------------------ ---------------- TOTAL REVENUES 52,501,864 43,884,369 84% 8,617,495 16% ------------- ------------------ ---------------- R.E. OPERATING EXPENSES Operating and Maintenance 15,228,530 12,935,418 2,293,112 Real Estate Taxes 5,499,341 4,725,346 773,995 Minority Interest in Properties 310,751 310,751 - ------------- ------------------ ---------------- Total Operating Expenses 21,038,622 17,971,515 85% 3,067,107 15% ============= ================== ================ NET OPERATING INCOME 31,463,242 25,912,854 82% 5,550,388 18% ============= ================== ================ OTHER INCOME (EXP.) Interest Expense (11,243,044) (8,145,244) (3,097,800) Depreciation & Amortization (10,213,658) (9,179,012) (1,034,646) ------------- ------------------ --------------- TOTAL OTHER INCOME (EXP.) (21,456,702) (17,324,256) (4,132,446) ------------- ------------------ --------------- Gains (losses) on sales of int. in R.E - - - ------------- ------------------ --------------- Income before Minority Int. 10,006,540 8,588,598 1,417,942 ------------- ------------------ --------------- Discontinued Operations: - ------------- ------------------ --------------- Income from Disposed Real Estate - - ------------- ------------------ --------------- Gain (losses) on Disposition of Discontinued Operations - ------------- ------------------ ---------------- TOTAL DISCONTINUED OPERATIONS - - ------------- ------------------ ---------------- Extraordinary item (Loss on early extinguishments of debt) - - - ------------- ------------------ ---------------- NET INCOME $ 10,006,540 $ 8,588,598 86% $ 1,417,942 14% ============= ================== ================ Q3 02 (3 months ended 9/30/02) ------------------------------------------------------ % Change % Change % Change Combined TOTAL WO JVs Total WO JVs ------- ------- ------- ------------- ----------------- ------------------ R.E. OPERATING REVENUES Base Rents 91.7% 144.9% -4.5% $ 18,103,363 $ 11,662,340 $ 6,441,023 Straight-Lining of Base Rents 189.6% 274.5% -1.4% 264,272 182,922 81,350 Percentage Rents 33.5% 40.7% 1.5% 407,801 333,666 74,135 Lease Termination and Other Income N/A N/A N/A 345,048 345,048 - Exp. Recoveries and Other Income 160.0% 279.6% -11.1% 6,328,771 3,725,484 2,603,287 ------- ------- ------- ------------- ----------------- ------------------ TOTAL REVENUES 106.3% 170.1% -6.3% 25,449,255 16,249,460 64% 9,199,795 36% ------- ------- ------- ------------- ----------------- ------------------ R.E. OPERATING EXPENSES Operating and Maintenance 186.0% 311.2% 5.2% 5,324,904 3,145,556 2,179,348 Real Estate Taxes 192.9% 316.8% 4.0% 1,877,789 1,133,766 744,023 Minority Interest in Properties N/A N/A N/A - - - ------- ------- ------- ------------- ----------------- ------------------ Total Operating Expenses 192.1% 320.0% 4.9% 7,202,693 4,279,322 59% 2,923,371 41% ======= ======= ======= ============= ================= ================== NET OPERATING INCOME 72.4% 116.5% -11.6% 18,246,562 11,970,138 66% 6,276,424 34% ======= ======= ======= ============= ================= ================== OTHER INCOME (EXP.) Interest Expense 58.9% 110.2% -3.2% (7,075,154) (3,874,220) (3,200,934) Depreciation & Amortization 103.4% 179.4% -40.4% (5,021,188) (3,285,130) (1,736,058) ------- ------- ------- ------------- ----------------- ------------------ TOTAL OTHER INCOME (EXP.) 77.4% 142.0% -16.3% (12,096,342) (7,159,350) (4,936,992) ------- ------- ------- ------------- ----------------- ------------------ Gains (losses) on sales of int. in R.E N/A N/A N/A 4,085,164 4,085,164 - ------- ------- ------- ------------- ----------------- ------------------ Income before Minority Int. -2.2% -3.5% 5.9% 10,235,384 8,895,952 1,339,432 ------- ------- ------- ------------- ----------------- ------------------ Discontinued Operations: - ------- ------- ------- ------------- ----------------- ------------------ Income from Disposed Real Estate N/A N/A N/A 71,772 71,772 ------- ------- ------- ------------- ----------------- ------------------ Gain (losses) on Disposition of Discontinued Operations N/A N/A N/A ------- ------- ------- ------------- ----------------- ------------------ TOTAL DISCONTINUED OPERATIONS N/A N/A N/A 71,772 71,772 - ------- ------- ------- ------------- ----------------- ------------------ Extraordinary item (Loss on early extinguishments of debt) N/A N/A N/A - - - ------- ------- ------- ------------- ----------------- ------------------ NET INCOME -2.9% -4.2% 5.9% $ 10,307,156 $ 8,967,724 87% $ 1,339,432 13% ======= ======= ======= ============= ================= ==================
SAME STORE COMPARISON
Q3 03 (3 months ended 9/30/03) ---------------------------------------------------------------------------- --------- Combined Total (2) SAME NEW REDEV DIVEST ------------- ----------------- ------------------- ------------------ --------- Base Rents $ 34,709,773 $ 13,889,446 $ 17,082,262 $ 3,738,065 $ - Straight-Lining of Base Rents 765,238 279,677 458,287 27,274 - Percentage Rents 544,610 230,443 152,810 161,357 - Lease Termination 27,129 15,000 12,129 - - Exp. Recoveries and Other Income 16,455,114 4,063,238 10,755,241 1,636,635 - ------------- ----------------- ------------------- ------------------ --------- TOTAL REVENUES 52,501,864 18,477,804 35% 28,460,729 54% 5,563,331 11% - 0% ------------- ----------------- ------------------- ------------------ --------- R.E. OPERATING EXPENSES Operating and Maintenance 15,228,530 3,405,972 10,310,539 1,512,019 - Real Estate Taxes 5,499,341 1,529,005 3,557,871 412,465 - 310,751 - 310,751 - ------------- ----------------- ------------------- ------------------ --------- Total Operating Expenses 21,038,622 4,934,977 23% 14,179,161 67% 1,924,484 9% - 0% ============= ================= =================== ================== ========= NET OPERATING INCOME 31,463,242 13,542,827 43% 14,281,568 45% 3,638,847 12% - 0% ============= ================= =================== ================== ========= OTHER INCOME (EXP.) Interest Expense (11,243,044) (5,210,423) (4,814,545) (1,218,076) - Depreciation & Amortization (10,213,658) (3,578,472) (5,526,957) (1,108,229) - ------------- ----------------- ------------------- ------------------ --------- TOTAL OTHER INCOME (EXP.) (21,456,702) (8,788,895) (10,341,502) (2,326,305) - ------------- ----------------- ------------------- ------------------ --------- Gain (losses) on sales of int. in R.E. - - - - ------------- ----------------- ------------------- ------------------ --------- Income before Minority Int. 10,006,540 4,753,932 3,940,066 1,312,542 - ------------- ----------------- ------------------- ------------------ --------- Discontinued Operations: Income from Disposed Real Estate - - - - - Gain (losses) on Disposition of Discontinued Operations - - ------------- ----------------- ------------------- ------------------ --------- TOTAL DISCONTINUED OPERATIONS - - - ------------- ----------------- ------------------- ------------------ --------- Extraordinary item (Loss on early extinguishment of debt) - - - - - ------------- ----------------- ------------------- ------------------ --------- NET INCOME $ 10,006,540 $ 4,753,932 48% $ 3,940,066 39% $ 1,312,542 13% $ - 0% ============= ================= =================== ================== ========= % Change Same Store ---------- Base Rents 1.3% Straight-Lining of Base Rents 23.7% Percentage Rents -5.4% Lease Termination N/A Exp. Recoveries and Other Income 5.0% ---------- TOTAL REVENUES 0.5% ---------- R.E. OPERATING EXPENSES Operating and Maintenance 8.4% Real Estate Taxes 9.9% N/A ---------- Total Operating Expenses 8.9% ---------- NET OPERATING INCOME -2.2% ========== OTHER INCOME (EXP.) Interest Expense 1.6% Depreciation & Amortization 0.3% ---------- TOTAL OTHER INCOME (EXP.) 1.0% ---------- Gain (losses) on sales of int. in R.E. N/A ---------- Income before Minority Int. -7.8% ---------- Discontinued Operations: Income from Disposed Real Estate N/A Gain (losses) on Disposition of Discontinued Operations N/A ---------- TOTAL DISCONTINUED OPERATIONS N/A ---------- Extraordinary item (Loss on early extinguishment of debt) N/A ---------- NET INCOME -7.8% ========== Q3 02 (3 months ended 9/30/02) --------------------------------------------------------------------------- Combined TOTAL(2) SAME NEW REDEV DIVEST ------------- ----------------- ------------------ ------------------ ----------- Base Rents $ 18,103,363 $ 13,704,730 $ 933,797 $ 3,464,836 $ 116,209 Straight-Lining of Base Rents 264,272 226,156 16,140 21,976 - Percentage Rents 407,801 243,592 35 164,174 - Lease Termination 345,048 341,250 - 3,798 - Exp. Recoveries and Other Income 6,328,771 3,871,082 822,315 1,635,374 (1,107) ------------- ----------------- ------------------ ------------------ ----------- TOTAL REVENUES 25,449,255 18,386,810 72% 1,772,287 7% 5,290,158 21% 115,102 ------------- ----------------- ------------------ ------------------ ----------- R.E. OPERATING EXPENSES Operating and Maintenance 5,324,904 3,140,663 596,166 1,588,075 (41,170) Real Estate Taxes 1,877,789 1,391,637 132,165 353,987 (5,006) - - - - - ------------- ----------------- ------------------ ------------------ ----------- Total Operating Expenses 7,202,693 4,532,300 63% 728,331 10% 1,942,062 27% (46,176) ============= ================= ================== ================== =========== NET OPERATING INCOME 18,246,562 13,854,510 76% 1,043,956 6% 3,348,096 18% 161,278 ============= ================= ================== ================== =========== OTHER INCOME (EXP.) Interest Expense (7,075,154) (5,130,767) (700,071) (1,244,316) (53,022) Depreciation & Amortization (5,021,188) (3,566,870) (433,948) (1,020,370) (36,484) ------------- ----------------- ------------------ ------------------ ----------- TOTAL OTHER INCOME (EXP.) (12,096,342) (8,697,637) (1,134,019) (2,264,686) (89,506) ------------- ----------------- ------------------ ------------------ ----------- Gain (losses) on sales of int. in R.E. 4,085,164 - - - 4,085,164 ------------- ----------------- ------------------ ------------------ ----------- Income before Minority Int. 10,235,384 5,156,873 (90,063) 1,083,410 4,156,936 ------------- ----------------- ------------------ ------------------ ----------- Discontinued Operations: Income from Disposed Real Estate 71,772 - - - - Gain (losses) on Disposition of Discontinued Operations ------------- ----------------- ------------------ ------------------ ----------- TOTAL DISCONTINUED OPERATIONS 71,772 4,156,936 ------------- ----------------- ------------------ ------------------ ----------- Extraordinary item (Loss on early extinguishment of debt) - - - - ------------- ----------------- ------------------ ------------------ ----------- NET INCOME $ 10,307,156 $ 5,156,873 50% $ (90,063) -1% $ 1,083,410 11% $ 4,156,936 ============= ================= ================== ================== ===========
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's share of the Total Revenues and Expenses of the underlying properties. The Company calculates the "gross up" by applying its percentage ownership interest to the historical financial statements of its equity method investments. (2) Discontinued operations are not included in the total column. The Income before minority interest from discontinued operations is included in the total income row labeled "Income from Disposed Real Estate" NOTE: Reconciliation to GAAP is on pages 33 to 36. 9 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] RETAIL INCOME STATEMENT (1) QUARTERLY COMPARISON (Property Status)
Q3 03 (3 months ended 9/30/03) ------------------------------------------------------------------------- Combined Total Enclosed Mail Power Center Strip Center ------------- ------------------ ----------------- ---------------- R.E. OPERATING REVENUES Base Rents $ 34,709,773 $ 26,583,847 $ 6,579,724 $ 1,546,202 Straight-Lining of Base Rents 765,238 577,623 162,538 25,077 Percentage Rents 544,610 483,902 60,708 - Lease Termination and Other Income 27,129 27,129 - - Exp. Recoveries and Other Income 16,455,114 14,814,869 1,184,031 456,214 ------------- ------------------ ----------------- ---------------- TOTAL REVENUES 52,501,864 42,487,370 81% 7,987,001 15% 2,027,493 4% ------------- ------------------ ----------------- ---------------- R.E. OPERATING EXPENSES Operating and Maintenance 15,228,530 14,161,518 758,724 308,288 Real Estate Taxes 5,499,341 4,580,098 719,987 199,256 Minority Interest in Properties 310,751 310,751 - - ------------- ------------------ ----------------- ---------------- Total Operating Expenses 21,038,622 19,052,367 91% 1,478,711 7% 507,544 2% ============= ================== ================= ================ NET OPERATING INCOME 31,463,242 23,435,003 74% 6,508,290 21% 1,519,949 5% ============= ================== ================= ================ OTHER INCOME (EXP.) Interest Expense (11,243,044) (8,610,780) (2,594,953) (37,311) Depreciation & Amortization (10,213,658) (7,860,605) (1,919,598) (433,455) ------------- ------------------ ----------------- ---------------- TOTAL OTHER INCOME (EXP.) (21,456,702) (16,471,385) (4,514,551) (470,766) ------------- ------------------ ----------------- ---------------- Gains(losses) on sales of int. in R.E. - - - - ------------- ------------------ ----------------- ---------------- Income before Minority Int. 10,006,540 6,963,618 1,993,739 1,049,183 ------------- ------------------ ----------------- ---------------- Discontinued Operations: ------------- ------------------ ----------------- ---------------- Income from Disposed Real Estate - - - - ------------- ------------------ ----------------- ---------------- Gain (losses) on Disposition of Discontinued Operations - ------------- ------------------ ----------------- ---------------- TOTAL DISCONTINUED OPERATIONS - - - - ------------- ------------------ ----------------- ---------------- Extraordinary item (Loss on early extinguishment of debt) - - - - ------------- ------------------ ----------------- ---------------- NET INCOME $ 10,006,540 $ 6,963,618 70% $ 1,993,739 20% $ 1,049,183 10% ============= ================== ================= ================ % Change % Change % Change % Change TOTAL Enclosed Mall Power Center Strip Center --------- ------------- ------------ ------------ R.E. OPERATING REVENUES Base Rents 91.7% 158.2% 2.3% 12.6% Straight-Lining of Base Rents 189.6% 242.9% 67.1% -1856.1% Percentage Rents 33.5% 44.9% -16.8% N/A Lease Termination and Other Income N/A N/A N/A N/A Exp. Recoveries and Other Income 160.0% 203.9% 7.4% 30.0% --------- ------------- ------------ ------------ TOTAL REVENUES 106.3% 171.0% -0.8% 17.6% --------- ------------- ------------ ------------ R.E. OPERATING EXPENSES Operating and Maintenance 186.0% 224.5% 11.5% 10.0% Real Estate Taxes 192.9% 341.4% 8.5% 12.9% Minority Interest in Properties N/A N/A N/A N/A --------- ------------- ------------ ------------ Total Operating Expenses 192.1% 252.7% 10.0% 11.2% ========= ============= ============ ============ NET OPERATING INCOME 72.4% 128.1% -2.9% 19.9% ========= ============= ============ ============ OTHER INCOME (EXP.) Interest Expense 58.9% 121.4% -15.4% -68.6% Depreciation & Amortization 103.4% 181.1% 3.7% 16.1% --------- ------------- ------------ ------------ TOTAL OTHER INCOME (EXP.) 77.4% 146.4% -8.2% -4.3% --------- ------------- ------------ ------------ Gains(losses) on sales of int. in R.E. N/A N/A N/A N/A --------- ------------- ------------ ------------ Income before Minority Int. -2.2% 94.0% 11.7% -78.4% --------- ------------- ------------ ------------ Discontinued Operations: --------- ------------- ------------ ------------ Income from Disposed Real Estate -100.0% N/A N/A N/A --------- ------------- ------------ ------------ Gain (losses) on Disposition of Discontinued Operations N/A N/A N/A N/A --------- ------------- ------------ ------------ TOTAL DISCONTINUED OPERATIONS N/A N/A N/A N/A --------- ------------- ------------ ------------ Extraordinary item (Loss on early extinguishment of debt) N/A N/A N/A N/A --------- ------------- ------------ ------------ NET INCOME -2.9% 94.0% 11.7% -78.7% ========= ============= ============ ============ Q3 02 (3 months ended 9/30/02) -------------------------------------------------------------------------- Combined TOTAL Enclosed Mall Power Center Strip Center -------------- ----------------- ------------------ ---------------- R.E. OPERATING REVENUES Base Rents $ 18,103,363 $ 10,295,239 $ 6,434,487 $ 1,373,637 Straight-Lining of Base Rents 264,272 168,429 97,271 (1,428) Percentage Rents 407,801 333,860 72,965 976 Lease Termination and Other Income 345,048 3,798 341,250 - Exp. Recoveries and Other Income 6,328,771 4,875,368 1,102,437 350,966 -------------- ----------------- ------------------ ---------------- TOTAL REVENUES 25,449,255 15,676,694 62% 8,048,410 32% 1,724,151 7% -------------- ----------------- ------------------ ---------------- R.E. OPERATING EXPENSES Operating and Maintenance 5,324,904 4,364,057 680,696 280,151 Real Estate Taxes 1,877,789 1,037,655 663,660 176,474 ----------------- ------------------ ---------------- Minority Interest in Properties - - - - -------------- ----------------- ------------------ ---------------- Total Operating Expenses 7,202,693 5,401,712 75% 1,344,356 19% 456,625 6% ============== ================= ================== ================ NET OPERATING INCOME 18,246,562 10,274,982 56% 6,704,054 37% 1,267,526 7% ============== ================= ================== ================ OTHER INCOME (EXP.) Interest Expense (7,075,154) (3,888,544) (3,067,916) (118,694) Depreciation & Amortization (5,021,188) (2,796,167) (1,851,684) (373,337) -------------- ----------------- ------------------ ---------------- TOTAL OTHER INCOME (EXP.) (12,096,342) (6,684,711) (4,919,600) (492,031) -------------- ----------------- ------------------ ---------------- Gains(losses) on sales of int. in R.E. 4,085,164 - - 4,085,164 -------------- ----------------- ------------------ ---------------- Income before Minority Int. 10,235,384 3,590,271 1,784,454 4,860,659 -------------- ----------------- ------------------ ---------------- Discontinued Operations: -------------- ----------------- ------------------ ---------------- Income from Disposed Real Estate 71,772 - - 71,772 -------------- ----------------- ------------------ ---------------- Gain (losses) on Disposition of Discontinued Operations -------------- ----------------- ------------------ ---------------- TOTAL DISCONTINUED OPERATIONS 71,772 - - 71,772 -------------- ----------------- ------------------ ---------------- Extraordinary item (Loss on early extinguishment of debt) - - - - -------------- ----------------- ------------------ ---------------- NET INCOME $ 10,307,156 $ 3,590,271 35% $ 1,784,454 17% $ 4,932,431 48% ============== ================= ================== ================
SAME STORE COMPARISON
Q3 03 (3 months ended 9/30/03) ----------------------------------------------------------------------- Combined Total Enclosed Mail Power Center Strip Center ------------ ----------------- ----------------- ---------------- R.E. OPERATING REVENUES Base Rents $ 13,889,446 $ 5,984,561 $ 6,579,724 $ 1,325,161 Straight-Lining of Base Rents 279,677 94,129 162,538 23,010 Percentage Rents 230,443 169,735 60,708 - Lease Termination 15,000 15,000 - - Exp. Recoveries and Other Income 4,063,238 2,495,984 1,184,031 383,223 ------------ ----------------- ----------------- ---------------- TOTAL REVENUES 18,477,804 8,759,409 47% 7,987,001 43% 1,731,394 9% ------------ ----------------- ----------------- ---------------- R.E. OPERATING EXPENSES Operating and Maintenance 3,405,972 2,365,650 758,724 281,598 Real Estate Taxes 1,529,005 664,112 719,987 144,906 Minority Interest in Properties - - - - ------------ ----------------- ----------------- ---------------- Total Operating Expenses 4,934,977 3,029,762 61% 1,478,711 30% 426,504 9% ============ ================= ================= ================ NET OPERATING INCOME 13,542,827 5,729,647 42% 6,508,290 48% 1,304,890 10% ============ ================= ================= ================ OTHER INCOME (EXP.) Interest Expense (5,210,423) (2,598,204) (2,574,908) (37,311) Depreciation & Amortization (3,578,472) (1,282,122) (1,919,598) (376,752) ------------ ----------------- ----------------- ---------------- TOTAL OTHER INCOME (EXP.) (8,788,895) (3,880,326) (4,494,506) (414,063) ============ ================= ================= ================ Gain (losses) on sales of int. in R.E - - - - ------------ ----------------- ----------------- ---------------- Income before Minority Int. 4,753,932 1,849,321 2,013,784 890,827 ------------ ----------------- ----------------- ---------------- Extraordinary item (Loss on early extinguishment of debt) - - - - ------------ ----------------- ----------------- ---------------- NET INCOME $ 4,753,932 $ 1,849,321 39% $ 2,013,784 42% $ 890,827 19% ============ ================= ================= ================ % Change % Change % Change % Change TOTAL(1) Enclosed Mall Power Center Strip Center ----------- ------------- ------------ ------------ R.E. OPERATING REVENUES Base Rents 1.3% -1.0% 2.3% 8.3% Straight-Lining of Base Rents 23.7% -23.5% 67.1% 294.8% Percentage Rents -5.4% 0.0% -16.8% N/A Lease Termination N/A N/A N/A N/A Exp. Recoveries and Other Income 5.0% 2.4% 7.4% 15.5% ----------- ------------- ------------ ------------ TOTAL REVENUES 0.5% -0.2% -0.8% 10.8% ----------- ------------- ------------ ------------ R.E. OPERATING EXPENSES Operating and Maintenance 8.4% 6.0% 11.5% 23.2% Real Estate Taxes 9.9% 13.2% 8.5% 2.4% Minority Interest in Properties N/A N/A N/A N/A ----------- ------------- ------------ ------------ Total Operating Expenses 8.9% 7.5% 10.0% 15.2% =========== ============= ============ ============ NET OPERATING INCOME -2.2% -3.8% -2.9% 9.5% =========== ============= ============ ============ OTHER INCOME (EXP.) Interest Expense 1.6% 33.6% -16.1% -68.6% Depreciation & Amortization 0.3% -7.3% 3.7% 13.5% ----------- ------------- ------------ ------------ TOTAL OTHER INCOME (EXP.) 1.0% 16.6% -8.6% -8.1% =========== ============= ============ ============ Gain (losses) on sales of int. in R.E N/A N/A N/A N/A ----------- ------------- ------------ ------------ Income before Minority Int. -7.8% -29.7% 12.9% 20.1% ----------- ------------- ------------ ------------ Extraordinary item (Loss on early extinguishment of debt) ----------- ------------- ------------ ------------ NET INCOME -7.8% -29.7% 12.9% 20.1% =========== ============= ============ ============ Q3 02 (3 months ended 9/30/02) ------------------------------------------------------------------------- Combined TOTAL Enclosed Mall Power Center Strip Center ------------ ----------------- ------------------ ---------------- R.E. OPERATING REVENUES Base Rents $ 13,704,730 $ 6,046,657 $ 6,434,487 $ 1,223,586 Straight-Lining of Base Rents 226,156 123,057 97,271 5,828 Percentage Rents 243,592 169,651 72,965 976 Lease Termination 341,250 - 341,250 - Exp. Recoveries and Other Income 3,871,082 2,436,740 1,102,437 331,905 ------------ ------------------ ------------------ ---------------- TOTAL REVENUES 18,386,810 8,776,105 48% 8,048,410 44% 1,562,295 8% ------------ ------------------ ------------------ ---------------- R.E. OPERATING EXPENSES Operating and Maintenance 3,140,663 2,231,399 680,696 228,568 Real Estate Taxes 1,391,637 586,450 663,660 141,527 Minority Interest in Properties - - - - ------------ ------------------ ------------------ ---------------- Total Operating Expenses 4,532,300 2,817,849 62% 1,344,356 30% 370,095 8% ============ ================== ================== ================ NET OPERATING INCOME 13,854,510 5,958,256 43% 6,704,054 48% 1,192,200 9% ============ ================== ================== ================ OTHER INCOME (EXP.) Interest Expense (5,130,767) (1,944,157) (3,067,916) (118,694) Depreciation & Amortization (3,566,870) (1,383,380) (1,851,684) (331,806) ------------ ------------------ ------------------ ---------------- TOTAL OTHER INCOME (EXP.) (8,697,637) (3,327,537) (4,919,600) (450,500) ============ ================== ================== ================ Gain (losses) on sales of int. in R.E - - - - ------------ ------------------ ------------------ ---------------- Income before Minority Int. 5,156,873 2,630,719 1,784,454 741,700 ------------ ------------------ ------------------ ---------------- Extraordinary item (Loss on early extinguishment of debt) - - - ------------ ------------------ ------------------ ---------------- NET INCOME $ 5,156,873 $ 2,630,719 51% $ 1,784,454 35% $ 741,700 14% ============ ================== ================== ================
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's share of the Total Assets and Liabilities of the underlying properties. The Company calculates the "gross up" by applying its percentage ownership interest to the historical financial statements of its equity method investments. NOTE: Reconciliation to GAAP is on pages 33 to 36. 10 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] MULTIFAMILY INCOME STATEMENT QUARTERLY COMPARISON (Property Status)
Q3 02 (3 months ended 9/30/03) ----------------------------------------------------------- % Change % Change % Change Combined TOTAL Wholly Owned JVs TOTAL WO JVs -------------- -------------------- ------------------- -------- -------- -------- REAL ESTATE REVENUES Rents $ 1,336,316 $ 989,836 $ 346,480 N/A N/A N/A Less Vacancies & Concessions (76,347) (60,737) (15,610) N/A N/A N/A Lease Termination 2,264 2,264 - N/A N/A N/A Other Revenues 69,343 61,527 7,816 N/A N/A N/A -------------- -------------------- ------------------- -------- -------- -------- TOTAL REVENUES 1,331,576 992,890 75% 338,686 25% N/A N/A N/A -------------- -------------------- ------------------- -------- -------- -------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 636,314 449,158 187,156 N/A N/A N/A Real Estate Taxes 76,172 42,536 33,636 N/A N/A N/A Minority Interest in Properties - - - N/A N/A N/A -------------- -------------------- ------------------- -------- -------- -------- TOTAL OPERATING EXPENSES 712,486 491,694 69% 220,792 31% N/A N/A N/A -------------- -------------------- ------------------- -------- -------- -------- NET OPERATING INCOME 619,090 501,196 81% 117,894 19% N/A N/A N/A -------------- -------------------- ------------------- -------- -------- -------- OTHER INCOME (EXPENSE) Interest Expense (222,542) (169,696) (52,846) N/A N/A N/A Depreciation & Amortization - - - N/A N/A N/A -------------- -------------------- ------------------- -------- -------- -------- TOTAL OTHER INCOME (EXPENSE) (222,542) (169,696) (52,846) N/A N/A N/A -------------- -------------------- ------------------- -------- -------- -------- Gains(losses) on sales of Real Estate 6,228,839 6,228,839 N/A N/A N/A -------------- -------------------- ------------------- -------- -------- -------- Gain (losses) on Disposition of Discontinued Operations 27,725,759 27,725,759 - N/A N/A N/A -------------- -------------------- ------------------- -------- -------- -------- Extraordinary item (Loss on early ext. of debt) - - - -------------- -------------------- ------------------- -------- -------- -------- NET INCOME $ 34,351,146 $ 28,057,259 82% $ 6,293,887 18% N/A N/A N/A ============== ==================== =================== ======== ======== ======== Q3 02 (3 months ended 9/30/02) ----------------------------------------------------------- Combined TOTAL Wholly Owned JVs -------------- -------------------- ------------------- REAL ESTATE REVENUES Rents $ 14,888,499 $ 13,142,616 $ 1,745,883 Less Vacancies & Concessions (1,288,892) (1,140,728) (148,164) Lease Termination 81,186 81,186 - Other Revenues 737,415 674,512 62,903 -------------- -------------------- ------------------- TOTAL REVENUES 14,418,208 12,757,586 88% 1,660,622 12% -------------- -------------------- ------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 4,890,938 4,238,321 652,617 Real Estate Taxes 1,368,066 1,217,816 150,250 Minority Interest in Properties - - - -------------- -------------------- ------------------- TOTAL OPERATING EXPENSES 6,259,004 5,456,137 87% 802,867 13% -------------- -------------------- ------------------- NET OPERATING INCOME 8,159,204 7,301,449 89% 857,755 11% -------------- -------------------- ------------------- OTHER INCOME (EXPENSE) Interest Expense (3,525,258) (3,095,320) (429,938) Depreciation & Amortization (2,312,496) (2,077,467) (235,029) -------------- -------------------- ------------------- TOTAL OTHER INCOME (EXPENSE) (5,837,754) (5,172,787) (664,967) -------------- -------------------- ------------------- Gains(losses) on sales of Real Estate - - - -------------- -------------------- ------------------- Gain (losses) on Disposition of Discontinued Operations - - - -------------- -------------------- ------------------- Extraordinary item (Loss on early ext. of debt) - - -------------- -------------------- ------------------- NET INCOME $ 2,321,450 $ 2,128,662 92% $ 192,788 8% ============== ==================== ===================
NOTE: Reconciliation to GAAP is on pages 33 to 36. 11 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE]
FUNDS FROM OPERATIONS (1) Q3:9/30/03 % Change Q3:9/30/02 ------------ -------- ------------- Net Income $ 34,923,502 327.1% $ 8,177,840 Minority Interest in operating partnership-operations 989,253 297.4% 248,916 Minority Interest in operating partnership-discontinued operations 2,382,461 N/A 637,292 (Gain) loss on sales of interests in real estate (6,228,839) N/A (4,085,164) Gain (losses) on disposition of discontinued operations (27,725,759) N/A - Depreciation & amortization: (2) Wholly owned and consolidated partnerships 9,126,800 182.3% 3,233,045 Unconsolidated partnerships and joint ventures 1,034,646 -47.5% 1,971,087 Discontinued operations - N/A 2,113,951 ------------ -------- ------------- FFO $ 14,502,064 17.9% $ 12,296,967 ------------ -------- ------------- Weighted Average Shares and O.P. Units Outstanding 21,537,479 17.7% 18,305,378 ------------ -------- ------------- Net Income per Share $ 1.79 263.0% $ 0.49 ------------ -------- ------------- FFO per Share $ 0.67 0.2% $ 0.67 ------------ -------- ------------- FUNDS AVAILABLE FOR DISTRIBUTION FFO $ 14,502,064 17.9% $ 12,296,967 Adjustments: Straight-lining of base rents (765,238) 189.6% (264,272) Recurring capital expenditures (231,073) -68.3% (729,390) Amortization of debt premium (1,742,283) N/A - ------------ -------- ------------- FAD $ 11,763,470 4.1% $ 11,303,305 ------------ -------- ------------- Weighted Average Shares and O.P. Units Outstanding 21,537,479 17.7% 18,305,378 ------------ -------- ------------- FAD per Share $ 0.55 -11.5% $ 0.62 ------------ -------- ------------- PAYOUT RATIOS ------------ -------- ------------- Dividend per Share $ 0.51 0.0% $ 0.51 ------------ -------- ------------- Payout Ratio of Net Income 28.46% -74.9% 103.31% ============ ======== ============= Payout Ratio of FFO 75.74% -0.2% 75.92% ============ ======== ============= Payout Ratio of FAD 93.37% 10.8% 82.59% ------------ -------- -------------
(1) Certain prior period amounts have been reclassified to conform with the current period presentation. (2) Excludes depreciation of non-real estate assets and amortization of deferred financing costs. These amounts were previously included in the depreciation amounts and deducted in a separate line. 12 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] KEY RATIOS Q3: 9/30/2003 Q3: 9/30/2002 ------------- ------------- Coverage Ratio Interest Coverage Ratio (EBITDA/Interest Expense) 2.27 2.16 ------------- ------------- Leverage Ratios(1) Debt / Total Market Capitalization 46.4% 56.1% ------------- ------------- Operating Ratios NOI/Real Estate Revenues 59.7% 66.3% ------------- ------------- Return on Investment Ratios(1) FFO/Equity Market Capitalization 1.7% 2.6% FFO multiple (Closing share price / Annualized FFO per share for quarter) 12.42 10.09 NOI/Total Market Capitalization 2.0% 2.5% NOI/Investment in Real Estate 2.5% 2.9% ------------- ------------- Payout Ratios FFO Payout Ratio (Dividend/FFO) per Share 75.7% 75.9% FAD Payout Ratio (Dividend/FAD) per Share 93.4% 82.6% ============= ============= (1) Calculations based on closing stock price at the end of the quarter. (2) Calculations were adjusted for discontinued operations. The calculation of these ratios includes wholly owned properties, PREIT's proportional share of joint venture properties and properties classified as held for sale. NOTE: Reconciliation to GAAP is on pages 33 to 36. 13 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] DEBT SCHEDULE of WHOLLY OWNED PROPERTIES
PREIT's Ownership Total Investment to PREIT's Investment to PREIT's Accumulated Property Name Interest Date Date (1) Depreciation - ----------------------------------------- --------- ------------------- --------------------- ------------------- Retail Properties Beaver Valley Mall 100% $ 57,403,180 $ 57,403,180 $ 2,350,987 Cherry Hill Mall (2)(3)(4) 73% 203,720,555 189,642,373 2,270,535 Christiana Power I 100% 35,077,062 35,077,062 4,226,982 Creekview 100% 18,919,399 18,919,399 1,693,605 Crest Plaza Shopping Center 100% 14,525,541 14,525,541 931,986 Dartmouth Mall 100% 50,172,329 50,172,329 8,619,727 Echelon Mall 100% 14,246,770 14,246,770 119,220 Exton Square Mall (4) 100% 145,114,369 145,114,369 1,579,990 Festival at Exton 100% 18,983,896 18,983,896 2,035,558 Gallery at Market East 100% 48,003,235 48,003,235 505,573 Magnolia Mall 100% 56,605,551 56,605,551 7,103,271 Moorestown Mall 100% 70,400,800 70,400,800 599,947 Northeast Tower Center 100% 29,218,446 29,218,446 2,494,854 Northeast Tower Center-Home Depot 100% 13,578,891 13,578,891 1,222,100 Paxton Towne Centre 100% 53,316,125 53,316,125 3,933,128 Plymouth Meeting Mall 100% 74,490,580 74,490,580 387,868 Prince Georges Plaza (4) 100% 80,104,192 80,104,192 9,977,071 South Blanding Village 100% 9,497,650 9,497,650 3,138,658 The Commons at Magnolia 100% 9,875,212 9,875,212 818,803 Willow Grove Park (4) 100% 170,037,901 170,037,901 4,848,160 --------- ------------------- --------------------- ------------------- Sub-Total Retail Properties $ 1,173,291,684 $ 1,159,213,502 $ 58,858,023 --------- ------------------- --------------------- ------------------- Industrial and Land Properties ARA Services, Allentown, PA 100% $ 84,610 $ 84,610 $ 81,610 ARA Services, Pennsauken, NJ 100% 210,473 210,473 167,876 Interstate Container Corporation 100% 1,802,271 1,802,271 1,468,679 Sears Roebuck & Co. 100% 406,857 406,857 346,066 --------- ------------------- --------------------- ------------------- Sub-Total Industrial and Land Properties $ 2,504,211 $ 2,504,211 $ 2,064,231 --------- ------------------- --------------------- ------------------- Properties Under Construction/Development Other Development (5) 100% --------- ------------------- --------------------- ------------------- Sub-Total Properties Under Development $ - $ - $ - --------- ------------------- --------------------- ------------------- TOTAL for WHOLLY OWNED PROPERTIES $ 1,175,795,895 $ 1,161,717,713 $ 60,922,254 ========= =================== ===================== =================== TOTAL for PARTNERSHIPS and JOINT VENTURES $ 298,320,987 $ 148,350,893 $ 36,454,134 ========= =================== ===================== =================== CORPORATE ========= =================== ===================== =================== TOTAL for WHOLLY OWNED and JV PROPERTIES $ 1,474,116,882 $ 1,310,068,606 $ 97,376,388 ========= =================== ===================== =================== PREIT's Share of O/S PREIT's Share of Current PREIT's Depreciated Mortgage Debt and Bank Loan Debt Mortgages Property Name Costs Construction Loans Outstanding Interest Rate - ----------------------------------------- ------------------- -------------------- ---------------- ------------- Retail Properties Beaver Valley Mall $ 55,052,193 $ 47,427,606 $ - 7.36% Cherry Hill Mall (2)(3)(4) 187,371,838 81,432,170 - 10.60% 58,562,054 - 5.00% Christiana Power I 30,850,080 - - 0.00% Creekview 17,225,794 - - 0.00% Crest Plaza Shopping Center 13,593,555 - - 0.00% Dartmouth Mall 41,552,602 69,763,537 - 4.95% Echelon Mall 14,127,550 - - 0.00% Exton Square Mall (4) 143,534,379 107,255,131 - 6.95% Festival at Exton 16,948,338 - - 0.00% Gallery at Market East 47,497,662 - - 0.00% Magnolia Mall 49,502,280 21,024,277 - 8.20% Moorestown Mall 69,800,853 63,954,149 - 4.95% Northeast Tower Center 26,723,592 - - 0.00% Northeast Tower Center-Home Depot 12,356,791 12,500,000 - 7.40% Paxton Towne Centre 49,382,997 - - 0.00% Plymouth Meeting Mall 74,102,712 - - 0.00% Prince Georges Plaza (4) 70,127,121 44,123,962 - 8.70% South Blanding Village 6,358,992 - - 0.00% The Commons at Magnolia 9,056,409 - - 0.00% Willow Grove Park (4) 165,189,741 114,492,612 - 8.39% ------------------- -------------------- ---------------- ------------- Sub-Total Retail Properties $ 1,100,355,479 $ 620,535,498 $ - 7.29% ------------------- -------------------- ---------------- ------------- Industrial and Land Properties ARA Services, Allentown, PA $ 3,000 $ - $ - 0.00% ARA Services, Pennsauken, NJ 42,597 - - 0.00% Interstate Container Corporation 333,592 - - 0.00% Sears Roebuck & Co. 60,791 - - 0.00% ------------------- -------------------- ---------------- ------------- Sub-Total Industrial and Land Properties $ 439,980 $ - $ - 0.00% ------------------- -------------------- ---------------- ------------- Properties Under Construction/Development Other Development (5) - - 0.00% ------------------- -------------------- ---------------- ------------- Sub-Total Properties Under Development $ - $ - $ - 0.00% ------------------- -------------------- ---------------- ------------- TOTAL for WHOLLY OWNED PROPERTIES $ 1,100,795,459 $ 620,535,498 $ - 7.29% =================== ==================== ================ ============= TOTAL for PARTNERSHIPS and JOINT VENTURES $ 111,896,759 $ 118,525,862 $ - 7.54% =================== ==================== ================ ============= CORPORATE $ - =================== ==================== ================ ============= TOTAL for WHOLLY OWNED and JV PROPERTIES $ 1,212,692,218 $ 739,061,360 $ - 7.33% =================== ==================== ================ ============= Annual Mortgage Mortgage Balance at Date of Property Name Debt Service Maturity Maturity Notes - ----------------------------------------- --------------- ------------------- -------- ----------- Retail Properties Beaver Valley Mall $ 3,972,402 $ 42,265,601 2012 Cherry Hill Mall (2)(3)(4) 9,132,792 70,237,549 2005 3,889,582 58,148,407 2005 Christiana Power I - - Creekview - - Crest Plaza Shopping Center - - Dartmouth Mall 4,483,668 57,594,279 2013 Echelon Mall Exton Square Mall (4) 8,102,242 93,034,212 2008 Festival at Exton - - Gallery at Market East Magnolia Mall 2,597,726 17,782,882 2007 Moorestown Mall 4,115,367 52,863,321 2013 Northeast Tower Center - - Northeast Tower Center-Home Depot 925,000 12,500,000 2005 Paxton Towne Centre - - Plymouth Meeting Mall Prince Georges Plaza (4) 4,134,937 39,986,536 2007 South Blanding Village - - The Commons at Magnolia - - Willow Grove Park (4) 10,046,933 107,307,726 2006 --------------- ------------------- -------- ----------- Sub-Total Retail Properties $ 51,400,649 $ 551,720,513 --------------- ------------------- -------- ----------- Industrial and Land Properties ARA Services, Allentown, PA $ - $ - ARA Services, Pennsauken, NJ - - Interstate Container Corporation - - Sears Roebuck & Co. - - --------------- ------------------- -------- ----------- Sub-Total Industrial and Land Properties $ - $ - --------------- ------------------- -------- ----------- Properties Under Construction/Development Other Development (5) - - Development --------------- ------------------- -------- ----------- Sub-Total Properties Under Development $ - $ - --------------- ------------------- -------- ----------- TOTAL for WHOLLY OWNED PROPERTIES $ 51,400,649 $ 551,720,513 =============== =================== ======== =========== TOTAL for PARTNERSHIPS and JOINT VENTURES $ 11,455,075 $ 102,602,765 =============== =================== ======== =========== CORPORATE =============== =================== ======== =========== TOTAL for WHOLLY OWNED and JV PROPERTIES $ 62,855,724 $ 654,323,278 =============== =================== ======== ===========
(1) Includes development and CIP costs. (2) PREIT acquired a 73% partnership interest in New Castle Associates. New Castle Associates, which acquired Cherry Hill Mall in a transaction that immediately preceded the Company's acquisition of the New Castle Associates partnership interest, is consolidated for accounting purposes. (3) PREIT's Investment to date is net of an allocation of the purchase price to the value of in-place leases, a market value assessment of the in-place leases, a deferral of a portion of the purchase price related to the 27% minority interest and includes improvements to the asset since the purchase. (4) Development costs are included in the balance sheet under other assets. (5) Includes mark to market of debt. NOTE: Reconciliation to GAAP is on pages 33 to 36. 14 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] DEBT SCHEDULE of PARTNERSHIPS AND JOINT VENTURES
PREIT's Share of O/S Mortgage PREIT's PREIT's PREIT's PREIT's Debt and Ownership Total Investment Investment to Accumulated Depreciated Construction Property Name Interest to Date Date (1) Depreciation Costs Loans - ------------------------------- --------- ----------------- --------------- -------------- ----------------- ----------------- Retail Properties Court at Oxford Valley 50% $ 55,616,100 $ 27,808,050 $ 4,097,286 $ 23,710,764 $ 21,968,175 Metroplex Shopping Center (Blue Route) 50% 82,091,872 41,045,936 3,325,491 37,720,445 32,214,382 Laurel Mall 40% 31,377,328 12,550,931 4,551,149 7,999,782 8,519,539 Lehigh Valley Mall 50% 29,320,828 14,660,414 9,401,318 5,259,096 23,828,582 Palmer Park Mall 50% 28,445,030 14,222,515 5,548,410 8,674,105 9,159,748 Red Rose Commons 50% 20,395,274 10,197,637 1,300,094 8,897,543 13,857,731 Rio Mall 60% 8,219,542 4,931,725 2,317,300 2,614,425 - Springfield Park I&II 50% 13,270,686 6,635,343 552,696 6,082,647 1,864,006 Whitehall Mall 50% 29,584,328 14,792,164 5,360,390 9,431,774 7,113,699 ----------------- --------------- -------------- ----------------- ----------------- Sub-Total Retail Properties $ 298,320,987 $ 146,844,715 $ 36,454,134 $ 110,390,581 $ 118,525,862 ----------------- --------------- -------------- ----------------- ----------------- Construction in Progress/Development Pavilion at Market East 50% N/A $ 1,506,178 - $ 1,506,178 - ----------------- --------------- -------------- ----------------- ----------------- Sub-Total Properties Under Development $ - $ 1,506,178 $ - $ 1,506,178 $ - ----------------- --------------- -------------- ----------------- ----------------- TOTAL for PARTNERSHIPS and JOINT VENTURES $ 298,320,987 $ 148,350,893 $ 36,454,134 $ 111,896,759 $ 118,525,862 ================= =============== ============== ================= ================= PREIT's Share of Current Bank Loan Mortgages Annual Mortgage Debt Interest Mortgage Debt Balance at Date of Property Name Outstanding Rate Service Maturity Maturity Notes - ------------------------------- ----------- --------- ------------- ------------- ---------- ----- Retail Properties Court at Oxford Valley $ - 8.02% $ 2,319,426 $ 15,966,965 2011 Metroplex Shopping Center (Blue Route) - 7.25% 2,680,953 28,250,000 2011 Laurel Mall - 7.63% 1,080,781 8,832,000 2003 Lehigh Valley Mall - 7.90% 2,479,260 21,750,440 2006 Palmer Park Mall - 6.77% 830,610 7,837,197 2009 Red Rose Commons - 7.66% 1,220,048 12,425,422 2009 Rio Mall - 0.00% - - Springfield Park I&II - 7.79% 202,561 1,411,804 2010 Whitehall Mall - 6.77% 641,436 6,128,937 2008 ----------- --------- ------------- ------------- Sub-Total Retail Properties $ - 7.54% $ 11,455,075 $ 102,602,765 ----------- --------- ------------- ------------- Construction in Progress/Development Construction in Pavilion at Market East $ - 0.00% - - Progress ----------- --------- ------------- ------------- Sub-Total Properties Under Development $ - $ - $ - $ - ----------- --------- ------------- ------------- TOTAL for PARTNERSHIPS and JOINT VENTURES $ - 7.54% $ 11,455,075 $ 102,602,765 =========== ========= ============= =============
(1) Includes development and CIP costs. NOTE: Reconciliation to GAAP is on pages 33 to 36. 15 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] DEBT ANALYSIS Outstanding Debt
% of Total % of Total % of Total Fixed Rate Indebtedness Floating Rate Indebtedness Total Indebtedness --------------- ------------ ------------- ------------ -------------- ------------ Wholly Owned Mortgage Notes Payable $ 620,535,498 84.0% $ - 0.0% $ 620,535,498 84.0% Revolving Line of Credit - 0.0% - 0.0% - 0.0% Acquisition Term Loan & Unsecured Line of Credit 0.0% - 0.0% - 0.0% --------------- ------------ -------------- SUB-TOTAL 620,535,498 84.0% - 0.0% 620,535,498 84.0% Partnerships and Joint Ventures (at PREIT's share) Mortgage Notes Payable 118,525,862 16.0% - 0.0% 118,525,862 16.0% Revolving Line of Credit - 0.0% - 0.0% - 0.0% Construction loans payable - 0.0% - 0.0% - 0.0% --------------- ------------ -------------- SUB-TOTAL 118,525,862 16.0% - 0.0% 118,525,862 16.0% Corporate Revolving Line of Credit - 0.0% - 0.0% - 0.0% --------------- ------------ -------------- SUB-TOTAL - 0.0% - 0.0% - 0.0% TOTAL OUTSTANDING DEBT 739,061,360 - 739,061,360 SWAP - - - --------------- ------------ -------------- TOTAL DEBT AFTER HEDGE $ 739,061,360 100.0% $ - 0.0% $ 739,061,360 100.0% =============== ============ ==============
OUTSTANDING PRINCIPAL BALANCE [CHART APPEARS HERE] Weighted Average Interest Rates Weighted Average Principal Balance Interest Rate ------------------- ------------- Fixed Rate Debt $ 739,061,360 7.33% Floating Rate Debt - 0.00% ------------------- ------------- TOTAL $ 739,061,360 7.33% =================== ============= Interest Rate Hedging Instruments
Interest Rate Expiration Fixed Rate in Floating Rate Nominal Amount Limit Date Nominal Amount Agreement in Agreement Expiration Date ---------------------------------------------- ---------------------------------------------------------------- CAP None SWAP None
MORTGAGE/CONSTRUCTION MATURITY SCHEDULE (1) Cumulative % Mortgage Balance at of Debt Year Maturity % of Debt Expiring Expiring - -------------------------------------------------------------------- 2003 8,832,000 1.3% 1.3% 2004 - 0.0% 1.3% 2005 70,648,407 10.8% 12.1% 2006 129,058,166 19.7% 31.9% 2007 57,769,418 8.8% 40.7% 2008 99,163,149 15.2% 55.9% 2009 20,262,619 3.1% 59.0% 2010 1,411,804 0.2% 59.2% 2011 44,216,965 6.8% 65.9% 2012 - 0.0% 65.9% Thereafter 222,960,750 34.1% 100.0% ---------------------------------------- $ 654,323,278 100.0% ======================================== (1) The weighted average period to mortgage maturity is 5.0 years. Average Debt Balance
Mortgage Debt Acquisition Term & Loan & Construction Line of Credit & Unsecured Line of Loans Bank Loans Credit TOTAL ---------------------------------------------------------------------- Beginning Balance 6/30/2003 $ 698,964,718 $ 117,900,000 $ 20,249,935 $ 837,114,745 Payoff acquisition term loan 7/21/2003 (10,249,935) (10,249,935) Paydown of unsecured line of credit (proceeds from multifamily sale) 7/30/2003 (3,427,747) (10,000,000) (13,427,747) Paydown (proceeds from multifamily sale) 7/30/2003 (33,831,176) (23,000,000) (56,831,176) Paydown (proceeds from equity offering) 8/21/2003 (94,900,000) (94,900,000) Willow Grove 70% partner's interest acquisition (1) 9/4/2003 82,276,438 82,276,438 Debt Amortization (2) 9/30/2003 (4,920,873) (4,920,873) ---------------------------------------------------------------------- Ending Balance 9/30/2003 $ 739,061,360 $ - $ - $ 739,061,360 Weighted Average Balance $ 697,107,481 $ 61,139,130 $ 5,600,529 $ 763,847,140
(1) Includes mark to market of debt. (2) Includes the amortization of debt premium. NOTE: Reconciliation to GAAP is on pages 33 to 36. 16 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] DEBT RATIOS(1)
9/30/2003 9/30/2002 ---------------- ---------------- Total Liabilities to Gross Asset Value Ratio of Total Liabilities(2) to Gross Asset Value(3) less than or equal to 70.0%. Total Liabilities $ 761,163,122 $ 632,342,962 Gross Asset Value $ 1,523,628,448 $ 1,147,160,068 Ratio 49.96% 55.12% ---------------- ---------------- Borrowing Base Ratio of Outstanding Line of Credit(4) to Borrowing Base Value(5) shall be less than or equal to 70%. Outstanding Line of Credit (includes letters of credit) $ 673,671 $ 121,673,671 Borrowing Base Value $ 171,710,000 $ 220,160,000 Ratio 0.39% 55.27% ---------------- ---------------- EBITDA to Interest Expense Ratio of EBITDA(6) to Interest Expense(7) greater than or equal to 1.75 to 1.00. EBITDA $ 104,337,345 $ 86,675,684 Interest Expense $ 49,889,409 $ 41,538,494 Ratio 2.09 2.09 ---------------- ---------------- Adjusted EBITDA to Debt Service Ratio of Adjusted EBITDA(8) to Debt Service(9) greater than or equal to 1.55 to 1.00. Adjusted EBITDA $ 102,768,757 $ 84,272,963 Debt Service $ 56,925,508 $ 48,814,750 Ratio 1.81 1.73 ---------------- ----------------
(1) Debt ratios are based on loan covenants included in the Trust's Line of Credit facility, led by Wells Fargo Bank National Association, which was effective as of December 29, 2000 and the second amendment to credit agreement effective as of April 28, 2003. (2) Total Liabilities defined as: Total PREIT consolidated GAAP liabilities plus certain letters of credit and other off balance sheet liabilities. (3) Gross Asset Value defined as: The sum of (i) Wholly Owned and Joint Venture Consolidated Property NOI for the previous rolling four quarter period, capitalized at 9.25%, (ii.) cash and cash equivalents (iii) and all accounts receivable net of reserves (iv) CIP (Construction-In-Progress) and land held for development at cost. (4) Outstanding Line of Credit includes all letters of credit secured by the line of credit. (5) Borrowing Base Value defined as: The lesser of (i) aggregate appraised value of all Borrowing Base Properties and (ii) the aggregate sum of the Permanent Loan Estimates of all Borrowing Base Properties. Permanent Loan Estimate for a given property is defined as the NOI for the previous rolling four quarters divided by the product of (i) 1.3 and (ii) the percent of a principal amount of a loan required to be paid each year in order to repay the principal amount of such loan in full based on a 25 years amortization, utilizing a rate of interest equal to the greater of (x) the rate of 10-year Treasury Constant maturities plus 2.0% or (y) 8.50%, in equal monthly installments of principal and interest. (6) EBITDA defined as: rolling four quarters of net earnings (loss) of the Trust before minority interests and distributions to holders of Preferred Stock, plus the sum of (I) depreciation and amortization expense and other non-cash charges, plus (ii) interest expense, plus (iii) all provisions for income taxes, minus (plus) (iv) extraordinary gains (losses), plus (v) the greater of (a) ownership share or (b) recourse share of EBITDA of unconsolidated affiliates. (7) Interest Expense defined as: all paid, accrued or capitalized interest expense excluding capitalized interest funded from construction loans. (8) Adjusted EBITDA defined as: EBITDA minus the Reserve for Replacements for all properties. (9) Debt Service defined as: Interest Expense plus regularly scheduled principal payments on Indebtedness other than any balloon, bullet or similar principal payment on any Indebtedness. 17 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] PORTFOLIO SUMMARY--RETAIL WHOLLY OWNED (Sorted by State)
Property Management Property Ownership Retail Properties-Wholly Owned City State Subtype Status Status Interest - ------------------------------ ------------- ----- ------------- ---------- ------------- --------- Christiana Power Center I Newark DE Power Center PREIT Existing 100% South Blanding Village Jacksonville FL Strip Center PREIT Existing 100% Dartmouth Mall Dartmouth MA Enclosed Mall PREIT Existing 100% Prince Georges Plaza (1) Hyattsville MD Enclosed Mall PREIT Redevelopment 100% Cherry Hill Mall Cherry Hill NJ Enclosed Mall PREIT New 73% Moorestown Mall Moorestown NJ Enclosed Mall PREIT New 100% Echelon Mall Voorhees NJ Enclosed Mall PREIT New 100% Crest Plaza Shopping Center (1) Allentown PA Strip Center PREIT Redevelopment 100% Exton Square Mall Exton PA Enclosed Mall PREIT New 100% Festival at Exton Exton PA Strip Center PREIT Existing 100% Paxton Towne Center (1) Harrisburg PA Power Center PREIT Existing 100% Beaver Valley Mall Monaca PA Enclosed Mall PREIT Existing 100% Northeast Tower Center Philadelphia PA Power Center PREIT Existing 100% The Gallery at Market East Philadelphia PA Enclosed Mall PREIT New 100% Plymouth Meeting Mall Plymouth Mtg. PA Enclosed Mall PREIT New 100% Creekview Shopping Center Warrington PA Power Center PREIT Existing 100% Willow Grove Park Willow Grove PA Enclosed Mall PREIT New 100% Magnolia Mall (1) Florence SC Enclosed Mall PREIT Redevelopment 100% The Commons at Magnolia Florence SC Strip Center PREIT Existing 100% - --------------------------------------------------------------------------------------------------------------------------------- TOTAL WHOLLY OWNED - --------------------------------------------------------------------------------------------------------------------------------- TOTAL JOINT VENTURE - --------------------------------------------------------------------------------------------------------------------------------- TOTAL FOR Wholly Owned and Joint Venture - --------------------------------------------------------------------------------------------------------------------------------- AVERAGE FOR Wholly Owned and Joint Venture - --------------------------------------------------------------------------------------------------------------------------------- Year Built/ Last Years Since Owned GLA Owned GLA TOTAL Retail Properties-Wholly Owned Date Acquired Renovated Renovation (anchors) (non-anchors) Owned GLA - ------------------------------ ------------- ----------- ----------- --------- ------------- ---------- Christiana Power Center I 1998 1998 5 190,814 111,595 302,409 South Blanding Village 1988/1990 1986 17 73,921 32,736 106,657 Dartmouth Mall 1997 1971/2000 3 301,583 315,109 616,692 Prince Georges Plaza (1) 1998 1959/1990 13 404,462 346,968 751,430 Cherry Hill Mall 2003 1961/1990 13 - 534,367 534,367 Moorestown Mall 2003 1963/2000 3 408,356 326,190 734,546 Echelon Mall 2003 1970/1998 5 310,840 434,844 745,684 Crest Plaza Shopping Center (1) 1964 1959/1991 12 45,000 60,992 105,992 Exton Square Mall 2003 1973/2000 3 440,301 369,303 809,604 Festival at Exton 1998 1991 12 60,425 84,578 145,003 Paxton Towne Center (1) 1999 2001 2 151,627 292,863 444,490 Beaver Valley Mall 2002 1970/1991 12 511,267 447,952 959,219 Northeast Tower Center 1998/1999 1997/1998 5 250,903 182,521 433,424 The Gallery at Market East 2003 1977/1983 20 - 192,440 192,440 Plymouth Meeting Mall 2003 1966/1999 4 345,000 405,911 750,911 Creekview Shopping Center 1999 2001 2 - 136,086 136,086 Willow Grove Park 2000/2003 1982/2001 2 225,000 339,781 564,781 Magnolia Mall (1) 1997 1979/1992 11 343,118 223,193 566,311 The Commons at Magnolia 1999 1991/2002 1 51,574 52,870 104,444 - ---------------------------------------------------------------------------------------------------------------------------- TOTAL WHOLLY OWNED 4,114,191 4,890,299 9,004,490 - ---------------------------------------------------------------------------------------------------------------------------- TOTAL JOINT VENTURE 1,635,244 2,072,799 3,708,043 - ---------------------------------------------------------------------------------------------------------------------------- TOTAL FOR Wholly Owned and Joint Venture 5,749,435 6,963,098 12,712,533 - ---------------------------------------------------------------------------------------------------------------------------- AVERAGE FOR Wholly Owned and Joint Venture 6.66 - ---------------------------------------------------------------------------------------------------------------------------- Space Not Owned TOTAL Property Retail Properties-Wholly Owned (Name/GLA) GLA Majors / Anchors Lease Expiration - ------------------------------ -------------- -------------- ------------------- ---------------- Christiana Power Center I - 302,409 Costco 1/31/19 Dick's Sporting Gds 11/30/13 South Blanding Village - 106,657 Staples 9/30/08 Food Lion 7/31/08 Dartmouth Mall - 616,692 JC Penney 7/31/09 Sears 4/12/06 Prince Georges Plaza (1) - 751,430 JC Penney 7/31/04 Hecht 10/31/08 Cherry Hill Mall JC Penney 740,770 1,275,137 JC Penney N/A Macy's Macy's N/A Strawbridge's Strawbridge's N/A Moorestown Mall Lord & Taylor 321,200 1,055,746 Boscov's 10/31/10 Strawbridge's Lord & Taylor N/A Sears 10/5/22 Strawbridge's N/A Echelon Mall Boscov's 396,783 1,142,467 Boscov's N/A Strawbridge's Strawbridge's N/A Crest Plaza Shopping Center (1) Target 143,130 249,122 Weis Market 1/31/07 Target N/A Exton Square Mall Strawbridge's 277,468 1,087,072 Boscov's 10/31/19 K-Mart JC Penney 5/31/20 K-Mart N/A Sears 1/31/20 Strawbridge's N/A Festival at Exton - 145,003 Sears Hardware 8/18/04 Clemen's 10/31/11 Paxton Towne Center (1) Target 273,058 717,548 Target N/A Costco Kohl's 1/25/21 Weis 11/30/20 Costco N/A Beaver Valley Mall Kaufmann's 204,770 1,163,989 Boscov's 9/30/18 JC Penney 9/30/17 Sears 8/15/06 Kaufmann's N/A Northeast Tower Center Raymour & 38,678 472,102 Home Depot 9/30/05 Flanigan Dick's Sporting Gds 7/31/08 Petsmart 2/28/12 Wal-Mart 1/31/14 The Gallery at Market East - 192,440 K-Mart N/A Strawbridge's N/A Plymouth Meeting Mall Strawbridge's 214,635 965,546 AMC Theater 12/31/18 Boscov's 10/31/16 Strawbridge's N/A Creekview Shopping Center Target 288,916 425,002 Target N/A Lowe's Lowe's N/A Genuardi's 12/31/21 Willow Grove Park Sears 641,861 1,206,642 Sears N/A Bloomingdale's Bloomingdale's N/A Strawbridge's Strawbridge's N/A Macy's 1/31/22 Magnolia Mall (1) - 566,311 Belk 1/31/06 Best Buy 1/31/13 JC Penney 3/31/07 Sears 10/18/04 The Commons at Magnolia Target 126,200 230,644 Goody's 5/31/12 Target N/A - ------------------------------------------------------------------------------------------------------------------------------ TOTAL WHOLLY OWNED 3,667,469 12,671,959 - ------------------------------------------------------------------------------------------------------------------------------ TOTAL JOINT VENTURE - 1,265,598 4,973,641 - ------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR Wholly Owned and Joint Venture - 4,933,067 17,645,600 - ------------------------------------------------------------------------------------------------------------------------------ AVERAGE FOR Wholly Owned and Joint Venture - ------------------------------------------------------------------------------------------------------------------------------
Summary of Properties for Wholly Owned and Joint Venture Properties - --------------------------------------------------------------- Enclosed Mall PREIT Managed Existing Wholly owned 14 21 18 19 - --------------------------------------------------------------- Power Center Third Party New Joint Venture Managed 8 7 7 10 - --------------------------------------------------------------- Strip Center Redevelopment 6 3 - --------------------------------------------------------------- 28 28 28 29 - --------------------------------------------------------------- Summary of Total Owned GLA for Wholly Owned and Joint Venture Properties
Enclosed Mall PREIT Managed Existing Wholly Owned Top 5 assets as a percentage of Total Owned GLA: 8,910,118 9,577,493 6,956,467 9,004,490 31.6% - ----------------------------------------------------------------------------------------------------------- Power Center Third Party Managed New Joint Venture Top asset as a percentage of Total Owned GLA: 3,047,905 3,135,040 4,332,333 3,708,043 7.5% - ----------------------------------------------------------------------------------------------------------- Strip Center Redevelopment 754,510 1,423,733 - ----------------------------------------------------------------------------------------------------------- 12,712,533 12,712,533 12,712,533 12,712,533 - -----------------------------------------------------------------------------------------------------------
(1) Property is currently under development or redevelopment; however, certain stores are open. 18 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] PORTFOLIO SUMMARY--RETAIL JOINT VENTURE (Sorted by State)
Property Management Ownership Retail Properties-Joint Venture City State Subtype Status Property Status Interest - ------------------------------- ------------- ----- ------------ ----------- --------------- --------- Rio Mall Rio Grande NJ Strip Center Third Party Existing 60% Lehigh Valley Mall Allentown PA Enclosed Third Party Existing 50% Mall Whitehall Mall Allentown PA Power Third Party Existing 50% Center Palmer Park Mall Easton PA Enclosed PREIT Existing 50% Mall Laurel Mall Hazleton PA Enclosed Third Party Existing 40% Mall Red Rose Commons Lancaster PA Power Third Party Existing 50% Center The Court at Oxford Valley Langhorne PA Power Third Party Existing 50% Center Metroplex Shopping Center Plymouth Mtg. PA Power Third Party Existing 50% Center Springfield Park I & II Springfield PA Strip Center PREIT Existing 50% - ------------------------------------------------------------------------------------------------------------------ TOTAL FOR JOINT VENTURE - ------------------------------------------------------------------------------------------------------------------ Year Built/ Last Years Since Owned GLA Owned GLA TOTAL Retail Properties-Wholly Owned Date Acquired Renovated Renovation (anchors) (non-anchors) Owned GLA - ------------------------------ ------------- ----------- ----------- --------- ------------- --------- Rio Mall 1973 1973/1999 4 136,066 29,517 165,583 Lehigh Valley Mall 1973 1977/1996 7 212,000 467,159 679,159 Whitehall Mall 1964 1964/1998 5 294,635 239,086 533,721 Palmer Park Mall 1972 1972/1998 5 314,235 131,937 446,172 Laurel Mall 1988 1973/1995 8 350,753 208,049 558,802 Red Rose Commons 1998 1998 5 - 263,452 263,452 The Court at Oxford Valley 1997 1996 7 176,831 280,031 456,862 Metroplex Shopping Center 1999 2001 2 67,185 410,276 477,461 Springfield Park I & II 1997/1998 1997/1998 5 83,539 43,292 126,831 - ------------------------------------------------------------------------------------------------------------------ TOTAL FOR JOINT VENTURE 1,635,244 2,072,799 3,708,043 - ------------------------------------------------------------------------------------------------------------------ TOTAL Retail Properties-Wholly Owned Space Not Owned (Name/GLA) Property GLA Majors / Anchors Lease Expiration - ------------------------------ -------------------------- ------------ ------------------- ---------------- Rio Mall - 165,583 K-Mart 7/31/18 Staples 10/31/04 Lehigh Valley Mall JC Penney 371,986 1,051,145 Macy's 7/31/12 Strawbridge's JC Penney N/A Firestone Strawbridge's N/A Whitehall Mall - 533,721 Kohl's 3/9/07 Sears 9/18/11 Bed, Bath & Beyond 1/31/10 Palmer Park Mall - 446,172 BonTon 7/25/14 Boscov's 10/31/18 Laurel Mall - 558,802 Boscov's 4/30/08 K-Mart 8/31/19 JC Penney 10/31/09 Red Rose Commons Weis Markets 199,590 463,042 Weis Markets N/A Home Depot Home Depot N/A The Court at Oxford Valley Home Depot 247,624 704,486 Best Buy 12/31/11 BJ's Dick's Sporting Gds 4/15/11 Linens N Things 2/14/17 Metroplex Shopping Center Target 300,729 778,190 Target N/A Lowe's Lowe's N/A Giant 2/28/21 Springfield Park I & II Target 145,669 272,500 Target N/A Bed, Bath & Beyond 1/31/09 LA Fitness 3/31/17 - ------------------------------------------------------------------------------------------------------------------ TOTAL FOR JOINT VENTURE - 1,265,598 4,973,641 - ------------------------------------------------------------------------------------------------------------------
19 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Property Acquisitions/Dispositions Summary
Date Acquired, Square Feet/ Ownership Completed, or Name of Project, Location Units/Acres Interest Sold - ------------------------------------------------------------------------------- ------------ --------- -------------- Acquisitions: - ------------- Partner's 70% interest in Willow Grove Park, Willow Grove, PA Square Feet 1,205,720 100% 3Q03 Parcel of Land at Plymouth Meeting, Plymouth Meeting, PA Acres 6.08 100% 3Q03 ------------ TOTAL ACQUISITIONS Square Feet 1,205,720 Acres 6.08 Pending Acquisitions: - --------------------- New Garden, New Garden, PA Square Feet 394,355 100% 3Q04 ------------ TOTAL PENDING ACQUISITIONS Square Feet 394,361 Divestitures - ------------ Regency Lakeside Apartments, Omaha, NE Units 433 100% Jul-03 Emerald Point, Virginia Beach, VA Units 862 100% Jul-03 ------------ SUBTOTAL Units 1,295 Fox Run Apartments, Warminster, PA Units 196 50% Sep-03 Will-O-Hill Apartments, Reading, PA Units 190 50% Sep-03 ------------ SUBTOTAL Units 386 TOTAL DIVESTITURES Units 1,681 Pending Divestitures: - --------------------- None Total PREIT's Expected NOI Name of Project, Location Cost or Price Cost or Price Cap (1) Major Tenants - ------------------------------------------------------------- -------------- --------------- ------------ --------------- Acquisitions: - ------------- Partner's 70% interest in Willow Grove Park, Willow Grove, PA $ 122,300,000 $ 122,300,000 9.00% Bloomingdale's, Macy's, Sears, Strawbridge's Parcel of Land at Plymouth Meeting, Plymouth Meeting, PA 15,750,000 15,750,000 N/A -------------- --------------- TOTAL ACQUISITIONS $ 138,050,000 $ 138,050,000 Pending Acquisitions: - --------------------- New Garden, New Garden, PA $ 34,761,000 $ 18,821,000 10.6% Home Depot -------------- --------------- TOTAL PENDING ACQUISITIONS $ 34,761,000 $ 18,821,000 Divestitures - ------------ Regency Lakeside Apartments, Omaha, NE Emerald Point, Virginia Beach, VA -------------- SUBTOTAL $ 81,400,000 Fox Run Apartments, Warminster, PA Will-O-Hill Apartments, Reading, PA -------------- SUBTOTAL $ 8,600,000 TOTAL DIVESTITURES $ 90,000,000 Pending Divestitures: - --------------------- None
(1) Expected NOI Cap is defined as PREIT's share of NOI in the year of stabilization divided by PREIT's share of the investment, except in the case of partner buyouts, where Expected NOI Cap is defined as incremental NOI budgeted / PREIT's incremental investment in the property. 20 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Development Activity
TOTAL PREIT's PROJECTED TOTAL PREIT's SHARE OF PROPERTY PROPERTY PROJECTED SHARE OF INVESTMENT NAME OF PROJECT LOCATION TYPE GLA (sq ft) (1) COST (1) COST TO DATE - -------------------------------------- ------------- ------------ --------------- -------------- ------------ -------------- Christiana Power Center (Phase II) (2) Newark, DE Power Center 355,670 $ 35,542,768 $ 35,542,768 $ 4,360,596 New Garden New Garden Power Center 394,355 34,761,000 18,821,000 1,323,683 Twp, PA Pavilion at Market East (3) Philadelphia, Land N/A N/A N/A 1,506,178 PA - ---------------------------------------------------------------------------------------------------------------------------------- Total Development Activity 750,025 $ 70,303,768 $ 54,363,768 $ 7,190,457 ================================================================================================================================== EXPECTED CONST DATE OF EXPECTED STABILIZED STABILIZED START INITIAL DATE OF OPERATIONS NAME OF PROJECT NOI CAP DATE OCCUPANCY COMPLETION DATE STATUS - -------------------------------------- ---------- ----- --------- ---------- ---------- ------------ Christiana Power Center (Phase II) (2) 9.8% 2Q04 2Q05 2Q05 2Q05 Development New Garden 10.6% 3Q04 3Q05 1Q06 1Q06 Development Pavilion at Market East (3) N/A N/A N/A N/A N/A Construction - ---------------------------------------------------------------------------------------------------------------- Total Development Activity 10.1% ================================================================================================================ % % % PREIT's NAME OF PROJECT COMP. LEASED OCCUPIED ANCHORS SHARE - -------------------------------------- ----- ------ -------- ------------------------- ------- Christiana Power Center (Phase II) (2) 12% 79% 0% Target, Bed Bath & Beyond 100% New Garden 5% 30% 0% Home Depot, Supermarket 100% Pavilion at Market East (3) N/A N/A N/A TBD 50% - --------------------------------------------------------------------------------------------------------- Total Development Activity =========================================================================================================
(1) GLA & total project cost include tenants that purchased their respective land; therefore, the % leased & occupied will also include these tenants. (2) The Company, through a joint venture partnership, has filed a complaint against the Delaware Department of Transportation and the Delaware Secretary of Transportation arising from their prior agreements to take actions necessary for development of the joint venture's Christiana Phase II Power Center. The ultimate disposition of this proceeding and the related delay in the development of this property is not clear at this time. (3) The Company's original development plans for the Pavilion at Market East are under review. The Company retains a 50% interest in the project joint venture, which continues to own the unimproved land. Redevelopment Activity
TOTAL PROJECTED TOTAL PREIT's PREIT's SHARE PROPERTY PROPERTY PROJECTED SHARE OF OF INVESTMENT NAME OF PROJECT LOCATION TYPE GLA (sq ft) (1) COST (1) COST TO DATE - ---------------------------- --------------- ------------- --------------- -------------- -------------- ------------- Magnolia Mall (2) Florence, SC Enclosed Mall 579,244 $ 11,529,000 $ 10,873,575 $ 7,116,667 Prince Georges Plaza (2)(3) Hyattsville, MD Enclosed Mall 893,274 24,146,000 17,200,000 3,049,831 Crest Plaza (2)(4) Allentown, PA Strip Center 259,854 17,800,000 12,788,000 12,812,000 - ---------------------------------------------------------------------------------------------------------------------------------- Total Redevelopment Activity $ 1,732,372 $ 53,475,000 $ 40,861,575 $ 22,978,498 ================================================================================================================================== EXPECTED CONST DATE OF EXPECTED STABILIZED STABILIZED START INITIAL DATE OF OPERATIONS NAME OF PROJECT NOI CAP DATE OCCUPANCY COMPLETION DATE STATUS - ---------------------------- ---------- ----- --------- ---------- ---------- ------------- Magnolia Mall (2) 11.1% 2Q02 4Q02 3Q04 3Q04 Construction Prince Georges Plaza (2)(3) 12.0% 2Q03 4Q04 4Q04 4Q05 Construction Crest Plaza (2)(4) 4.8% 3Q99 1Q03 2Q04 2Q04 Redevelopment - ------------------------------------------------------------------------------------------------------- Total Redevelopment Activity 9.5% ======================================================================================================= % % PREIT's NAME OF PROJECT COMP. % LEASED OCCUPIED ANCHORS SHARE - ---------------------------- ----- -------- -------- --------------------------- ------- Magnolia Mall (2) 74% 88% 74% Best Buy, Foodcourt 100% Prince Georges Plaza (2)(3) 18% 65% 0% Target 100% Crest Plaza (2)(4) 85% 92% 73% Eckerds, Applebee's, Target 100% - -------------------------------------------------------------------------------------------------- Total Redevelopment Activity ==================================================================================================
(1) GLA & total project cost include tenants that purchased their respective land; therefore, the % leased & occupied will also include these tenants. (2) Income producing property, but still under development. (3) Prince Georges Plaza's % leased is based on the 210,010 sq foot redevelopment area which was vacant at 9/30/03. (4) PREIT's share of investment to date includes certain costs that are reimbursable by the tenant. Both "PREIT's Share of Costs" and "PREIT Investment to Date" are estimated to be $12,788,000 upon project completion. 21 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Top Twenty Tenants (by PREIT's share of Annualized Base Rent)
Number of GLA of Annualized PREIT's share of Percent of PREIT's Total Tenant Stores Stores Base Rent Annualized Base Rent (2) Retail Base Rent - ---------------------------- --------- ---------- --------------- ------------------------ ------------------------ The Gap, Inc./Old Navy (1) 28 349,635 $ 7,779,202 $ 6,967,721 5.02% The Limited Stores, Inc. (1) 50 320,771 7,149,748 6,552,446 4.72% Footlocker, Inc. 27 126,208 2,955,700 2,586,939 1.86% Zales 41 36,938 2,773,573 2,531,298 1.82% Boscov's 7 1,308,706 3,137,572 2,345,972 1.69% Dick's Sporting Goods 4 199,694 2,990,188 2,158,094 1.55% Bed Bath & Beyond 6 203,543 2,681,393 1,816,558 1.31% Sam Goody/Suncoast (1) 16 57,028 1,770,552 1,656,151 1.19% JC Penney 9 841,212 1,681,575 1,550,470 1.12% Circuit City 4 116,730 1,652,592 1,406,335 1.01% Kay Bee Toys 14 75,685 1,518,335 1,349,230 0.97% Trans World Entertainment 13 57,011 1,576,496 1,274,357 0.92% Lenscrafters 11 53,511 1,390,199 1,259,771 0.91% Payless Shoe Source (1) 22 66,286 1,409,664 1,241,979 0.89% American Eagle Outfitters 10 50,863 1,424,530 1,236,002 0.89% Best Buy 3 137,397 2,096,845 1,220,923 0.88% Kay Jewelers 11 16,284 1,390,279 1,157,239 0.83% PetSmart 4 104,755 1,721,271 1,083,724 0.78% Barnes & Noble/B. Dalton 4 89,933 1,716,570 960,519 0.69% Toys R Us 4 132,890 1,389,214 909,345 0.65% --------- ---------- --------------- ------------------------ ------------------------ Total Top 20 Tenants 288 4,345,080 50,205,499 41,265,074 29.72% --------- ---------- --------------- ------------------------ ------------------------ Total Retail Leased 1,689 11,665,884 $ 101,670,917 $ 138,839,092(3) 100.00% --------- ---------- --------------- ------------------------ ------------------------
(1) Includes lease(s) in which tenant pays straight percentage rent in lieu of minimum rent. No annualized rent has been estimated for these leases. (2) Includes PREIT's proportionate share of tenant rents from joint venture properties based on PREIT's ownership percentage in the respective joint venture. (3) PREIT's share of annualized base rent is derived by annualizing 3rd quarter base rent. Straight line rent is not included in the base rent figures. 22 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Retail Lease Expiration Schedule - Anchors(1)
Year Leases Gross Leasable Area ---- ------ ------------------- Number of Leases Percent of Lease Expiration Year Expiring Expiring GLA Total --------------------- ---------------- ------------ ---------- Prior (2) 0 - 0.00% 2003 0 - 0.00% 2004 4 280,367 5.20% 2005 1 136,633 2.53% 2006 3 414,992 7.69% 2007 4 327,160 6.06% 2008 5 625,909 11.60% 2009 3 206,252 3.82% 2010 1 202,765 3.76% 2011 3 335,585 6.22% 2012 2 241,940 4.48% 2013 2 71,634 1.33% Thereafter 21 2,551,807 47.30% ---------------- ------------ ---------- Totals: 49 5,395,044 100% ================ ============ ========== Year Annualized Base Rent ---- -------------------- Percent of PREIT's Share of Total Average Rent in Expiring Rent in Expiring (PREIT's Expiring Base Lease Expiration Year Year Year (3) Share) Rent psf - --------------------- ---------------- ---------------- ---------- ------------- Prior (2) $ - $ - 0.00% $ - 2003 - - 0.00% - 2004 594,240 522,384 2.90% 2.12 2005 1,250,000 1,250,000 6.94% 9.15 2006 849,731 849,731 4.71% 2.05 2007 930,893 920,993 5.11% 2.85 2008 1,223,065 781,465 4.34% 1.95 2009 1,502,609 979,504 5.43% 7.29 2010 725,507 725,507 4.03% 3.58 2011 2,305,126 1,152,563 6.39% 6.87 2012 350,707 313,826 1.74% 1.45 2013 1,073,994 1,073,994 5.96% 14.99 Thereafter 11,692,118 9,454,335 52.45% 4.58 ---------------- ---------------- ---------- ------------- Totals: $ 22,497,989 $ 18,024,301 100% $ 4.17 ================ ================ ========== =============
(1) Includes only Owned Anchor space. (2) Includes all tenant leases which have already expired and are on a Month to Month basis. (3) Includes PREIT's proportionate share of tenant rents from joint venture properties based on PREIT's ownership percentage in the respective joint ventures. 23 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Retail Lease Expiration Schedule - Non Anchors(1)
Year Leases Gross Leasable Area ---- ------ ------------------- Number of Leases Percent of Lease Expiration Year Expiring Expiring GLA Total - --------------------- ---------------- ------------ ---------- Prior (2) 31 51,687 0.82% 2003 55 105,573 1.68% 2004 189 496,651 7.92% 2005 209 574,626 9.16% 2006 187 715,253 11.41% 2007 175 478,393 7.63% 2008 139 441,869 7.05% 2009 132 400,322 6.38% 2010 177 586,805 9.36% 2011 129 719,723 11.48% 2012 97 465,316 7.42% 2013 72 279,504 4.46% Thereafter 48 955,118 15.23% ---------------- ------------ ---------- Totals: 1640 6,270,840 100% Year Annualized Base Rent ---- -------------------- Percent of PREIT's Share of Total Rent in Expiring Rent in Expiring (PREIT's Average Expiring Lease Expiration Year Year Year Share) Base Rent psf - --------------------- ---------------- ---------------- ---------- ---------------- Prior (2) $ 1,040,221 $ 917,150 0.70% $ 20.13 2003 2,594,119 2,192,626 1.68% 24.57 2004 11,309,453 10,012,099 7.68% 22.77 2005 14,502,448 13,522,202 10.37% 25.24 2006 16,467,114 15,065,205 11.55% 23.02 2007 11,438,903 10,161,950 7.79% 23.91 2008 11,680,570 10,865,734 8.33% 26.43 2009 11,872,046 10,970,353 8.41% 29.66 2010 15,798,061 14,800,052 11.35% 26.92 2011 17,109,138 13,452,728 10.31% 23.77 2012 12,022,025 10,582,521 8.11% 25.84 2013 7,522,029 6,696,323 5.13% 26.91 Thereafter 15,802,792 11,186,188 8.58% 16.55 ---------------- ---------------- ---------- ---------------- Totals: $ 149,158,919 $ 130,425,131 100% $ 23.79 ================ ================ ========== ================
(1) Includes only Owned Non-Anchor space. (2) Includes all tenant leases which have already expired and are on a Month to Month basis. (3) Includes PREIT's proportionate share of tenant rents from joint venture properties based on PREIT's ownership percentage in the respective joint ventures. 24 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Leasing Activity Summary RETAIL
Average Annualized previous Average New Increase/ Tenant Base Rent Base Rent Decrease in Improvements psf New Lease Number GLA psf psf Base Rent psf (1) - ------------------------ ----------- ---------- ------------- ------------ ------------- ----------------- Previously Leased Space: 1st Quarter 5 6,660 $ 37.76 $ 42.45 $ 4.69 $ - 2nd Quarter 8 20,062 27.90 31.77 3.87 3rd Quarter 5 16,243 26.72 32.85 6.13 3.08 4th Quarter - - ----------- ---------- ------------- ------------ ------------- ----------------- Total or Average 18 42,965 $ 28.98 $ 33.83 $ 4.85 $ 1.16 =========== ========== ============= ============ ============= ================= Previously Vacant Space: 1st Quarter 3 4,774 $ - $ 43.23 $ 43.23 $ - 2nd Quarter 10 24,388 - 24.53 24.53 0.50 3rd Quarter 17 180,911 6.35 6.35 0.74 4th Quarter - - ----------- ---------- ------------- ------------ ------------- ----------------- Total or Average 30 210,073 $ - $ 9.30 $ 9.30 0.70 =========== ========== ============= ============ ============= ================= Annualized TOTAL Annualized Leasing costs of Leasing psf Commissions (1)(2) New Lease psf (1)(2) - ------------------------ ----------- -------------------- Previously Leased Space: 1st Quarter $ - $ - 2nd Quarter - - 3rd Quarter - 3.08 4th Quarter - ----------- -------------------- Total or Average $ - $ 1.16 =========== ==================== Previously Vacant Space: 1st Quarter $ - $ - 2nd Quarter 0.50 3rd Quarter 0.74 4th Quarter - ----------- -------------------- Total or Average $ - $ 0.70 =========== ====================
Average Annualized previous Average New Increase/ Tenant Renewal (3) Base Rent Base Rent Decrease in Improvements psf - ----------- Number GLA psf psf Base Rent psf (1) ----------- ---------- ------------- ------------ ------------- ----------------- 1st Quarter 14 35,368 $ 22.87 $ 28.65 $ 5.78 $ - 2nd Quarter 11 35,004 15.02 20.02 5.00 3rd Quarter 21 159,503 11.77 12.65 0.88 4th Quarter - ----------- ---------- ------------- ------------ ------------- ----------------- Total or Average 46 229,875 $ 13.97 $ 16.23 $ 2.26 $ - =========== ========== ============= ============ ============= =================
Annualized Leasing TOTAL Annualized Commissions Costs of Leasing psf psf (1)(2) (1)(2) ----------- -------------------- 1st Quarter $ - $ - 2nd Quarter - 3rd Quarter - 4th Quarter - ----------- -------------------- Total or Average $ - $ - ----------- --------------------
(1) These leasing costs are presented as annualized costs per square foot and are spread uniformly over the life of the lease. (2) External commissions only. (3) This category includes expansions, relocations and lease extensions. 25 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE]
Capital Expenditures Q3 03 (3 months ended September 30, 2003) Retail Wholly Owned Joint Ventures Total - ---------------------------------------------- ------------ -------------- ------------- New development projects $ 2,222,124 $ 3,764 $ 2,225,888 Redevelopment projects with incremental GLA 2,333,248 3,512 2,336,760 and/or Anchor Replacement - Renovation with no incremental GLA - Tenant allowances 508,803 82,668 591,471 Operational capital expenditures at properties: - CAM expenditures 8,255 8,255 Non-CAM expenditures 465,079 140,957 606,036 ------------ -------------- ------------- Total $ 5,537,509 $ 230,901 $ 5,768,410 ============ ============== =============
External and internal leasing commissions for this period were $2,000 26 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Enclosed Malls (Includes Non-Anchor Owned Space)
Q303 -------------------------------------------------------------- Avg Base Avg % Rent Additional Avg Comp Occup. Cost Rent psf psf (1) Charges psf sales psf Ratio (1) (2) ----------- ---------- ----------- -------- ----------- Beaver Valley Mall $ 17.56 $ 0.43 $ 5.27 $ 243 9.57% Cherry Hill Mall 35.24 0.83 16.12 413 12.64% Dartmouth Mall 18.57 1.40 7.64 392 7.04% Echelon Mall 23.38 0.20 11.88 242 14.65% Exton Square Mall 33.91 0.51 8.47 363 11.82% The Gallery at Market East 32.14 0.36 4.48 410 9.02% Laurel Mall 13.10 0.51 4.69 263 6.96% Lehigh Valley Mall 30.05 0.61 9.78 432 9.37% Magnolia Mall (3) 24.36 1.22 8.72 317 10.82% Moorestown Mall 24.37 0.63 12.70 331 11.39% Palmer Park Mall 21.30 1.21 9.33 333 9.56% Plymouth Meeting 18.87 0.47 8.19 264 10.43% Prince Georges Plaza (3) 23.34 1.09 10.54 398 8.79% Willow Grove Park 37.55 0.35 17.96 404 13.83% ----------- ---------- ----------- --------- ----------- Enclosed Malls weighted average $ 26.41 $ 0.61 $ 10.33 $ 345 10.82% ----------- ---------- ----------- --------- ----------- Wholly Owned Properties $ 25.73 $ 0.62 $ 9.96 $ 331 10.96% Joint Venture Properties $ 28.17 $ 0.59 $ 11.28 $ 381 10.52% ----------- ---------- ----------- --------- ----------- PRI-managed $ 26.75 $ 0.62 $ 10.74 $ 339 11.25% Non PRI-managed $ 24.68 $ 0.57 $ 8.17 $ 378 8.84% ----------- ---------- ----------- --------- ----------- Same Properties/Existing $ 22.49 $ 0.89 $ 8.16 $ 377 8.37% New $ 27.91 $ 0.50 $ 11.16 $ 333 11.88% Redevelopment Properties $ 23.70 $ 1.14 $ 9.90 $ 369 9.41% % Change -------------------------------------------------------------- Avg Base Avg % Rent Additional Avg Comp Occup. Cost Rent psf psf Charges psf Sales psf Ratio ----------- ---------- ----------- --------- ----------- Beaver Valley Mall 0.0% -18.6% 0.1% -2.0% 0.16% Cherry Hill Mall N/A N/A N/A N/A N/A Dartmouth Mall 3.0% -14.7% 11.4% 0.5% 0.24% Echelon Mall N/A N/A N/A N/A N/A Exton Square Mall N/A N/A N/A N/A N/A The Gallery at Market East N/A N/A N/A N/A N/A Laurel Mall 2.1% -8.9% 8.0% -3.3% 0.44% Lehigh Valley Mall 8.8% -32.2% 16.1% -1.2% 0.91% Magnolia Mall (3) 21.9% -21.7% 5.2% 3.9% 1.04% Moorestown Mall N/A N/A N/A N/A N/A Palmer Park Mall 6.9% -15.3% -3.4% 0.9% 0.16% Plymouth Meeting N/A N/A N/A N/A N/A Prince Georges Plaza (3) 0.4% 13.8% 3.4% 1.0% 0.05% Willow Grove Park 6.6% -22.6% 12.7% 3.1% 0.66% ----------- ---------- ----------- --------- ----------- Enclosed Malls weighted average 14.2% -28.8% 21.6% -2.8% 1.68% ----------- ---------- ----------- --------- ----------- Wholly Owned Properties 44.9% -38.6% 67.1% 6.9% 2.98% Joint Venture Properties 6.5% -23.2% 12.0% -0.7% 0.79% ----------- ---------- ----------- --------- ----------- PRI-managed 16.0% -30.9% 16.3% 0.8% 1.37% Non PRI-managed 6.2% -27.6% 13.2% -2.5% 0.78% ----------- ---------- ----------- --------- ----------- Same Properties/Existing 4.9% -18.7% 10.5% -1.5% 0.55% New 8.7% 2.0% 9.7% 6.0% 0.31% Redevelopment Properties 7.6% -3.9% 4.3% 2.4% 0.34% Q302 -------------------------------------------------------------- Avg Base Avg % Additional Avg Comp Occup. Cost Rent psf Rent Charges psf Sales psf Ratio (1) psf (1) (2) -------------------------------------------------------------- Beaver Valley Mall $ 17.55 $ 0.52 $ 5.27 $ 248 9.41% Cherry Hill Mall N/A N/A N/A N/A N/A Dartmouth Mall 18.02 1.64 6.86 390 6.80% Echelon Mall N/A N/A N/A N/A N/A Exton Square Mall N/A N/A N/A N/A N/A The Gallery at Market East N/A N/A N/A N/A N/A Laurel Mall 12.83 0.56 4.34 272 6.52% Lehigh Valley Mall 27.62 0.89 8.43 437 8.45% Magnolia Mall (3) 19.98 1.56 8.29 305 9.78% Moorestown Mall N/A N/A N/A N/A N/A Palmer Park Mall 19.94 1.43 9.65 330 9.40% Plymouth Meeting N/A N/A N/A N/A N/A Prince Georges Plaza (3) 23.24 0.96 10.20 394 8.73% Willow Grove Park 35.22 0.46 15.94 392 13.17% ----------- ---------- ----------- --------- ----------- Enclosed Malls weighted average 23.12 0.86 8.50 355 9.15% ----------- ---------- ----------- --------- ----------- Wholly Owned Properties $ 17.76 $ 1.01 $ 5.96 $ 310 7.98% Joint Venture Properties $ 26.44 $ 0.76 $ 10.07 $ 383 9.73% ----------- ---------- ----------- --------- ----------- PRI-managed $ 23.05 $ 0.89 $ 9.24 $ 336 9.88% Non PRI-managed $ 23.24 $ 0.79 $ 7.22 $ 388 8.05% ----------- ---------- ----------- --------- ----------- Same Properties/Existing $ 21.43 $ 1.10 $ 7.38 $ 382 7.83% New $ 25.68 $ 0.49 $ 10.17 $ 314 11.57% Redevelopment Properties $ 22.02 $ 1.18 $ 9.49 $ 361 9.06%
(1) Base rent is actual for Q303. Additional charges and % rent are projections for 2003. (2) Average comparable sales for Q202 are actual. Sales for the Joint Venture Q303 are projected annual comparable sales per square foot. (3) Magnolia Mall and Prince Georges Plaza are classified as a redevelopment property and are not included in the weighted average. Occupancy
Q303 ----------------------------------------------------- Total Total In-Line only In-Line w/Anchor % w/Anchor % (Non-Anchor) (Non-Anchor) Leased Available % Leased % Available ----------- ---------- ------------ ------------- Beaver Valley Mall 89.8% 10.2% 78.1% 21.9% Cherry Hill Mall 93.3% 6.7% 93.3% 6.7% Dartmouth Mall 81.4% 18.6% 93.1% 6.9% Echelon Mall 52.2% 47.8% 70.4% 29.6% Exton Square Mall 96.1% 3.9% 90.5% 9.5% The Gallery at Market East 94.5% 5.5% 94.5% 5.5% Laurel Mall 96.3% 3.7% 89.9% 10.1% Lehigh Valley Mall 90.7% 9.3% 86.4% 13.6% Magnolia Mall 91.9% 8.1% 79.3% 20.7% Moorestown Mall 96.2% 3.8% 91.4% 8.6% Palmer Park Mall 98.5% 1.5% 95.0% 5.0% Plymouth Meeting 74.3% 25.7% 91.8% 8.2% Prince Georges Plaza 88.8% 11.2% 92.9% 7.1% Willow Grove Park 95.0% 5.0% 91.7% 8.3% ----------- ---------- ------------ ------------- Enclosed Malls weighted average (1) 86.3% 13.7% 87.8% 12.2% ----------- ---------- ------------ ------------- Wholly Owned Properties 83.0% 17.0% 87.1% 12.9% Joint Venture Properties 94.7% 5.3% 89.6% 10.4% ----------- ---------- ------------ ------------- PRI-managed 85.1% 14.9% 87.8% 12.2% Non PRI-managed 93.2% 6.8% 87.5% 12.5% ----------- ---------- ------------ ------------- Same Properties/Existing 91.1% 8.9% 90.0% 10.0% New 84.4% 15.6% 87.0% 13.0% Redevelopment Properties 90.1% 9.9% 87.6% 12.4% Occupancy Change in % Occupancy ----------------------------------------------------- Total Total In-Line only In-Line w/Anchor % w/Anchor % (Non-Anchor) (Non-Anchor) Leased Available % Leased % Available ----------- ---------- ------------ ------------- Beaver Valley Mall -1.8% 1.8% -3.8% 3.8% Cherry Hill Mall N/A N/A N/A N/A Dartmouth Mall -12.1% 12.1% 5.6% -5.6% Echelon Mall N/A N/A N/A N/A Exton Square Mall N/A N/A N/A N/A The Gallery at Market East N/A N/A N/A N/A Laurel Mall 0.2% -0.2% 0.6% -0.6% Lehigh Valley Mall -5.6% 5.6% -8.2% 8.2% Magnolia Mall 5.5% -5.5% -8.6% 8.6% Moorestown Mall N/A N/A N/A N/A Palmer Park Mall 3.2% -3.2% 10.6% -10.6% Plymouth Meeting N/A N/A N/A N/A Prince Georges Plaza -0.2% 0.2% -0.6% 0.6% Willow Grove Park -1.0% 1.0% -1.7% 1.7% ----------- ---------- ------------ ------------- Enclosed Malls weighted average (1) -8.1% 8.1% -1.2% 1.2% ----------- ---------- ------------ ------------- Wholly Owned Properties -9.4% 9.4% 2.8% -2.8% Joint Venture Properties -1.3% 1.3% -2.5% 2.5% ----------- ---------- ------------ ------------- PRI-managed -8.6% 8.6% 1.1% -1.1% Non PRI-managed -3.0% 3.0% -5.5% 5.5% ----------- ---------- ------------ ------------- Same Properties/Existing -4.2% 4.2% -0.4% 0.4% New N/A N/A N/A N/A Redevelopment Properties 2.3% -2.3% -3.7% 3.7% Q302 ----------------------------------------------------- Total Total In-Line only In-Line w/Anchor % w/Anchor % (Non-Anchor) (Non-Anchor) Leased Available % Leased % Available ----------- ---------- ------------ ------------- Beaver Valley Mall 91.6% 8.4% 82.0% 18.0% Cherry Hill Mall N/A N/A N/A N/A Dartmouth Mall 93.5% 6.5% 87.5% 12.5% Echelon Mall N/A N/A N/A N/A Exton Square Mall N/A N/A N/A N/A The Gallery at Market East N/A N/A N/A N/A Laurel Mall 96.0% 4.0% 89.3% 10.7% Lehigh Valley Mall 96.3% 3.7% 94.6% 5.4% Magnolia Mall 86.3% 13.7% 87.9% 12.1% Moorestown Mall N/A N/A N/A N/A Palmer Park Mall 95.4% 4.6% 84.4% 15.6% Plymouth Meeting N/A N/A N/A N/A Prince Georges Plaza 89.0% 11.0% 93.5% 6.5% Willow Grove Park 96.0% 4.0% 93.4% 6.6% ----------- ---------- ------------ ------------- Enclosed Malls weighted average (1) 94.5% 5.5% 88.9% 11.1% ----------- ---------- ------------ ------------- Wholly Owned Properties 92.3% 7.7% 84.3% 15.7% Joint Venture Properties 96.0% 4.0% 92.1% 7.9% ----------- ---------- ------------ ------------- PRI-managed 93.7% 6.3% 86.8% 13.2% Non PRI-managed 96.2% 3.8% 93.0% 7.0% ----------- ---------- ------------ ------------- Same Properties/Existing 95.3% 4.7% 90.4% 9.6% New N/A N/A N/A N/A Redevelopment Properties 87.8% 12.2% 91.3% 8.7%
(1) Magnolia Mall and Prince Georges Plaza are classified as a redevelopment property and are not included in the weighted average. 27 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Power Centers (Includes Non-Anchor Owned Space)
Q303 % Change ----------------------------------- ---------------------------------- Avg Base Avg % Additional Avg Base Avg % Additional Rent psf Rent psf Charges Rent psf Rent psf Charges (1) (1) psf psf ---------- ---------- ----------- -------- -------- ----------- Christiana Power Center $ 19.37 $ - $ 1.84 0.0% N/A 8.5% Creekview Shopping Center 14.33 - 2.74 6.6% N/A 34.3% Northeast Tower Center 13.61 - 3.40 1.2% N/A 18.2% Paxton Towne Center 15.93 - 2.61 1.0% N/A 36.0% The Court at Oxford Valley 15.13 0.03 3.77 -1.0% N/A 1.7% Red Rose Commons 13.22 0.02 2.89 0.0% -35.2% -2.8% Whitehall Mall 10.64 0.36 3.01 -2.4% 47.0% 7.4% Metroplex Shopping Center 18.13 - 3.45 0.0% N/A 1.1% ---------- ---------- ----------- -------- -------- ----------- Power Centers weighted average $ 15.13 $ 0.05 $ 3.09 -0.1% 50.9% 7.9% ---------- ---------- ----------- -------- -------- ----------- Wholly Owned Properties $ 15.55 $ - $ 2.72 0.7% N/A 25.6% Joint Venture Properties $ 14.89 $ 0.08 $ 3.31 -0.6% 52.4% 1.4% ---------- ---------- ----------- -------- -------- ----------- PRI-managed $ 15.55 $ - $ 2.72 0.7% N/A 25.6% Non PRI-managed $ 14.89 $ 0.08 $ 3.31 -0.6% 52.4% 1.4% ---------- ---------- ----------- -------- -------- ----------- Same Properties/Existing $ 15.13 $ 0.05 $ 3.09 -0.1% 50.9% 7.9% New $ - $ - $ - N/A N/A N/A Redevelopment Properties $ - $ - $ - N/A N/A N/A Q302 ----------------------------------- Avg Base Avg % Additional Rent psf Rent psf Charges (1) (1) psf ---------- ---------- ----------- Christiana Power Center $ 19.37 $ - $ 1.69 Creekview Shopping Center 13.44 - 2.04 Northeast Tower Center 13.44 - 2.87 Paxton Towne Center 15.77 - 1.92 The Court at Oxford Valley 15.28 - 3.70 Red Rose Commons 13.22 0.03 2.97 Whitehall Mall 10.89 0.24 2.80 Metroplex Shopping Center 18.13 - 3.41 ---------- ---------- ----------- Power Centers weighted average $ 15.14 $ 0.03 $ 2.87 ---------- ---------- ----------- Wholly Owned Properties $ 15.44 $ - $ 2.17 Joint Venture Properties $ 14.97 $ 0.05 $ 3.27 ---------- ---------- ----------- PRI-managed $ 15.44 $ - $ 2.17 Non PRI-managed $ 14.97 $ 0.05 $ 3.27 ---------- ---------- ----------- Same Properties/Existing $ 15.14 $ 0.03 $ 2.87 New $ - $ - $ - Redevelopment Properties $ - $ - $ -
(1) Base rent is actual for Q303. Additional charges and % rent are projections for 2003.
Q303 ---------------------------------------------------- Total Total In-Line only In-Line w/Anchor w/Anchor % (Non-Anchor) (Non-Anchor) % Leased Available % Leased % Available --------- ---------- ------------ ------------ Christiana Power Center 100.0% 0.0% 100.0% 0.0% Creekview Shopping Center 100.0% 0.0% 100.0% 0.0% Northeast Tower Center 100.0% 0.0% 100.0% 0.0% Paxton Towne Center 90.7% 9.3% 85.9% 14.1% The Court at Oxford Valley 97.1% 2.9% 95.3% 4.7% Red Rose Commons 99.2% 0.8% 99.2% 0.8% Whitehall Mall 97.6% 2.4% 94.7% 5.3% Metroplex Shopping Center 100.0% 0.0% 100.0% 0.0% --------- ---------- ------------ ------------ Power Centers weighted average 97.7% 2.3% 96.4% 3.6% --------- ---------- ------------ ------------ Wholly Owned Properties 96.9% 3.1% 94.3% 5.7% Joint Venture Properties 98.4% 1.6% 97.6% 2.4% --------- ---------- ------------ ------------ PRI-managed 96.9% 3.1% 94.3% 5.7% Non PRI-managed 98.4% 1.6% 97.6% 2.4% --------- ---------- ------------ ------------ Same Properties/Existing 97.7% 2.3% 96.4% 3.6% New N/A N/A N/A N/A Redevelopment Properties N/A N/A N/A N/A Occupancy Change in % Occupancy ---------------------------------------------------- Total Total In-Line only In-Line w/Anchor w/Anchor % (Non-Anchor) (Non-Anchor) % Leased Available % Leased % Available --------- ---------- ------------ ------------ Christiana Power Center 0.0% 0.0% 0.0% 0.0% Creekview Shopping Center 0.0% 0.0% 0.0% 0.0% Northeast Tower Center 0.0% 0.0% 0.0% 0.0% Paxton Towne Center 2.7% -2.7% 4.0% -4.0% The Court at Oxford Valley -2.9% 2.9% -4.7% 4.7% Red Rose Commons 0.0% 0.0% 0.0% 0.0% Whitehall Mall 0.0% 0.0% -0.1% 0.1% Metroplex Shopping Center 0.0% 0.0% 0.0% 0.0% --------- ---------- ------------ ------------ Power Centers weighted average 0.0% 0.0% -0.1% 0.1% --------- ---------- ------------ ------------ Wholly Owned Properties 1.3% -1.3% 1.6% -1.6% Joint Venture Properties -0.8% 0.8% -1.1% 1.1% --------- ---------- ------------ ------------ PRI-managed 1.3% -1.3% 1.6% -1.6% Non PRI-managed -0.8% 0.8% -1.1% 1.1% --------- ---------- ------------ ------------ Same Properties/Existing 0.0% 0.0% -0.1% 0.1% New N/A N/A N/A N/A Redevelopment Properties N/A N/A N/A N/A Q302 ---------------------------------------------------- Total Total In-Line only In-Line w/Anchor w/Anchor % (Non-Anchor) (Non-Anchor) % Leased Available % Leased % Available --------- ---------- ------------ ------------ Christiana Power Center 100.0% 0.0% 100.0% 0.0% Creekview Shopping Center 100.0% 0.0% 100.0% 0.0% Northeast Tower Center 100.0% 0.0% 100.0% 0.0% Paxton Towne Center 88.0% 12.0% 81.9% 18.1% The Court at Oxford Valley 100.0% 0.0% 100.0% 0.0% Red Rose Commons 99.2% 0.8% 99.2% 0.8% Whitehall Mall 97.6% 2.4% 94.7% 5.3% Metroplex Shopping Center 100.0% 0.0% 100.0% 0.0% --------- ---------- ------------ ------------ Power Centers weighted average 97.7% 2.3% 96.5% 3.5% --------- ---------- ------------ ------------ Wholly Owned Properties 95.6% 4.4% 92.6% 7.4% Joint Venture Properties 99.1% 0.9% 98.8% 1.2% --------- ---------- ------------ ------------ PRI-managed 95.6% 4.4% 92.6% 7.4% Non PRI-managed 99.1% 0.9% 98.8% 1.2% --------- ---------- ------------ ------------ Same Properties/Existing 97.7% 2.3% 96.5% 3.5% New N/A N/A N/A N/A Redevelopment Properties N/A N/A N/A N/A
28 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Strip Centers (Includes Non-Anchor Owned Space)
Q303 % Change Q302 --------------------------------- --------------------------------- --------------------------------- Avg Base Avg % Avg Base Avg % Additional Rent psf Rent psf Additional Avg Base Avg % Additional Rent psf Rent psf Charges (1) (1) Charges psf Rent psf Rent psf Charges psf (1) (1) psf -------- -------- ----------- -------- -------- ----------- -------- -------- ----------- Crest Plaza Shopping Center $ 15.21 $ - $ 3.74 10.3% -100.0% 217.0% $ 13.78 $ 0.94 $ 1.18 Festival at Exton 16.56 - 3.89 8.8% N/A 24.3% 15.22 - 3.13 The Commons at Magnolia 12.81 0.03 1.57 3.5% -57.2% 70.8% 12.37 0.08 0.92 Rio Mall 5.89 - 0.25 -4.8% N/A -23.0% 6.18 - 0.32 South Blanding Village 8.96 - 2.61 2.2% N/A 17.5% 8.77 - 2.22 Springfield Park I & II 17.95 - 5.40 3.6% -100.0% 8.6% 17.33 0.15 4.97 ======== ======== =========== ======== ======== =========== ======== ======== =========== Strip Centers weighted average (2) $ 13.45 $ 0.01 $ 2.92 -0.3% -85.1% 4.2% $ 13.50 $ 0.05 $ 2.80 ======== ======== =========== ======== ======== =========== ======== ======== =========== Wholly Owned Properties $ 13.93 $ 0.01 $ 2.91 5.8% -48.4% 23.2% $ 13.16 $ 0.02 $ 2.36 Joint Venture Properties $ 12.21 $ - $ 2.95 -13.6% -100.0% -19.0% $ 14.13 $ 0.11 $ 3.64 ======== ======== =========== ======== ======== =========== ======== ======== =========== PRI-managed $ 14.60 $ 0.01 $ 3.33 2.1% -84.6% 8.2% $ 14.30 $ 0.06 $ 3.07 Non PRI-managed $ 5.89 $ - $ 0.25 -4.8% N/A -23.0% $ 6.18 $ - $ 0.32 ======== ======== =========== ======== ======== =========== ======== ======== =========== Same Properties/Existing $ 13.65 $ - $ 3.32 -0.6% -100.0% 4.0% $ 13.73 $ 0.05 $ 3.20 New $ 12.81 $ 0.03 $ 1.57 3.5% -57.2% 70.8% $ 12.37 $ 0.08 $ 0.92 Redevelopment Properties $ 15.21 $ - $ 3.74 10.3% -100.0% 217.0% $ 13.78 $ 0.94 $ 1.18 ======== ======== =========== ======== ======== =========== ======== ======== ===========
(1) Base rent is actual for Q303. Additional charges and % rent are projections for 2003. (2) Crest Plaza is classified as a Redevelopment Property and is not included in the weighted average.
Occupancy Q303 Change in % Occupancy --------------------------------------------- --------------------------------------------- In-Line In-Line Total In-Line (Non- Total In-Line (Non- Total w/Anchor only (Non- Anchor) Total w/Anchor only (Non- Anchor) w/Anchor % Anchor) % w/Anchor % Anchor) % % Leased Available % Leased Available % Leased Available % Leased Available -------- --------- ---------- --------- -------- --------- ---------- --------- Crest Plaza Shopping Center 84.7% 15.3% 73.5% 26.5% 38.0% -38.0% 42.3% -42.3% Festival at Exton 95.5% 4.5% 92.3% 7.7% -2.0% 2.0% -3.4% 3.4% The Commons at Magnolia 97.6% 2.4% 95.3% 4.7% 8.2% -8.2% 16.9% -16.9% Rio Mall 99.6% 0.4% 97.8% 2.2% 0.0% 0.0% 0.6% -0.6% South Blanding Village 97.4% 2.6% 91.4% 8.6% 0.0% 0.0% 0.0% 0.0% Springfield Park I & II 90.9% 9.1% 73.5% 26.5% 0.4% -0.4% -9.2% 9.2% ======== ========= ========== ========= ======== ========= ========== ========= Strip Centers weighted average (1) 96.3% 3.7% 90.2% 9.8% 0.9% -0.9% 1.7% -1.7% ======== ========= ========== ========= ======== ========= ========== ========= Wholly Owned Properties 96.7% 3.3% 93.1% 6.9% 1.6% -1.6% 3.4% -3.4% Joint Venture Properties 95.8% 4.2% 83.3% 16.7% 0.2% -0.2% -3.0% 3.0% ======== ========= ========== ========= ======== ========= ========== ========= PRI-managed 95.2% 4.8% 89.1% 10.9% 1.2% -1.2% 1.5% -1.5% Non PRI-managed 99.6% 0.4% 97.8% 2.2% 0.0% 0.0% 0.6% -0.6% ======== ========= ========== ========= ======== ========= ========== ========= Same Properties/Existing 96.1% 3.9% 88.7% 11.3% -0.4% 0.4% -2.2% 2.2% New 97.6% 2.4% 95.3% 4.7% 8.2% -8.2% 16.9% -16.9% Redevelopment Properties 84.7% 15.3% 73.5% 26.5% 38.0% -38.0% 42.3% -42.3% ======== ========= ========== ========= ======== ========= ========== ========= Q302 --------------------------------------------- In-Line Total In-Line (Non- Total w/Anchor only (Non- Anchor) w/Anchor % Anchor) % % Leased Available % Leased Available -------- --------- ---------- --------- Crest Plaza Shopping Center 46.8% 53.2% 31.2% 68.8% Festival at Exton 97.5% 2.5% 95.7% 4.3% The Commons at Magnolia 89.4% 10.6% 78.4% 21.6% Rio Mall 99.6% 0.4% 97.1% 2.9% South Blanding Village 97.4% 2.6% 91.4% 8.6% Springfield Park I & II 90.6% 9.4% 82.7% 17.3% ======== ========= ========== ========= Strip Centers weighted average (1) 95.4% 4.6% 88.5% 11.5% ======== ========= ========== ========= Wholly Owned Properties 95.1% 4.9% 89.6% 10.4% Joint Venture Properties 95.7% 4.3% 86.4% 13.6% ======== ========= ========== ========= PRI-managed 93.9% 6.1% 87.6% 12.4% Non PRI-managed 99.6% 0.4% 97.1% 2.9% ======== ========= ========== ========= Same Properties/Existing 96.5% 3.5% 90.9% 9.1% New 89.4% 10.6% 78.4% 21.6% Redevelopment Properties 46.8% 53.2% 31.2% 68.8% ======== ========= ========== =========
(1) Crest Plaza is classified as a Redevelopment Property and is not included in the weighted average. 29 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Retail Portfolio (Includes Non-Anchor Owned Space)
Q303 % Change ------------------------------- -------------------------------- Avg Base Avg% Additional Avg Base Avg% Additional Rent psf Rent psf Charges Rent psf Rent psf Charges (1) (1) psf(1) (1) (1) psf(1) -------- -------- ---------- -------- -------- ---------- Retail Portfolio weighted average (2) $ 22.28 $ 0.41 $ 7.71 19.5% 0.2% 42.8% -------- -------- ---------- -------- -------- ---------- Wholly Owned Properties (2) $ 23.19 $ 0.47 $ 8.22 42.8% 4.6% 112.5% Joint Venture Properties $ 20.87 $ 0.31 $ 6.94 3.5% -18.4% 8.7% -------- -------- ---------- -------- -------- ---------- PRI-managed (2) $ 24.23 $ 0.48 $ 9.00 24.1% -3.6% 46.0% Non PRI-managed $ 17.98 $ 0.24 $ 4.87 1.6% -20.8% 6.2% -------- -------- ---------- -------- -------- ---------- Same Properties/Existing $ 17.50 $ 0.33 $ 4.80 2.0% -15.8% 9.0% New $ 27.63 $ 0.49 $ 10.98 10.7% 5.1% 13.5% Redevelopment Properties (2) $ 23.00 $ 1.04 $ 9.39 6.5% -10.9% 3.7% Q302 ------------------------------- Avg Base Avg% Additional Rent psf Rent psf Charges (1) (1) psf(1) -------- -------- ---------- Retail Portfolio weighted average (2) $ 18.64 $ 0.41 $ 5.40 --------- -------- ---------- Wholly Owned Properties (2) $ 16.24 $ 0.45 $ 3.87 Joint Venture Properties $ 20.18 $ 0.38 $ 6.38 --------- -------- ---------- PRI-managed (2) $ 19.52 $ 0.50 $ 6.17 Non PRI-managed $ 17.71 $ 0.31 $ 4.59 --------- -------- ---------- Same Properties/Existing $ 17.16 $ 0.39 $ 4.40 New $ 24.95 $ 0.47 $ 9.67 Redevelopment Properties (2) $ 21.60 $ 1.17 $ 9.06
(1) Base rent is actual for Q303. Additional charges and % rent are projections for 2003. (2) Crest Plaza, Magnolia Mall and Prince Georges Plaza are classified as Redevelopment Properties and are not included in the weighted average.
Occupancy Q303 Change in % Occupancy -------------------------------------------- -------------------------------------------- In-Line In-Line Total In-line (Non- Total In-line (Non- Total w/Anchor only(Non- Anchor) Total w/Anchor only(Non- Anchor) w/Anchor % Anchor) % w/Anchor % Anchor) % % Leased Available % Leased Available % Leased Available % Leased Available -------- --------- --------- --------- -------- ---------- --------- --------- Retail Portfolio weighted average (1) 89.9% 10.1% 90.5% 9.5% -5.9% 5.9% -2.0% 2.0% -------- --------- --------- --------- -------- ---------- --------- --------- Wholly Owned Properties (1) 86.2% 13.8% 88.7% 11.3% -7.7% 7.7% 0.2% -0.2% Joint Venture Properties 96.3% 3.7% 93.4% 6.6% -1.0% 1.0% -1.8% 1.8% -------- --------- --------- --------- -------- ---------- --------- --------- PRI-managed (1) 87.5% 12.5% 88.9% 11.1% -6.7% 6.7% 0.2% -0.2% Non PRI-managed 96.4% 3.6% 94.0% 6.0% -1.6% 1.6% -2.6% 2.6% -------- --------- --------- --------- -------- ---------- --------- --------- Same Properties/Existing 95.0% 5.0% 93.7% 6.3% -1.7% 1.7% -0.3% 0.3% New 84.6% 15.4% 87.1% 12.9% -8.4% 8.4% 0.8% -0.8% Redevelopment Properties (1) 89.7% 10.3% 86.2% 13.8% 6.2% -6.2% 3.2% -3.2% Q302 --------------------------------------------- In-Line Total In-line (Non- Total w/Anchor only(Non- Anchor) w/Anchor % Anchor) % % Leased Available % Leased Available -------- --------- --------- --------- Retail Portfolio weighted average (1) 95.8% 4.2% 92.4% 7.6% -------- --------- --------- --------- Wholly Owned Properties (1) 93.9% 6.1% 88.5% 11.5% Joint Venture Properties 97.2% 2.8% 95.2% 4.8% -------- --------- --------- --------- PRI-managed (1) 94.2% 5.8% 88.8% 11.2% Non PRI-managed 98.0% 2.0% 96.7% 3.3% -------- --------- --------- --------- Same Properties/Existing 96.6% 3.4% 94.0% 6.0% New 93.0% 7.0% 86.3% 13.7% Redevelopment Properties (1) 83.5% 16.5% 83.0% 17.0%
(1) Crest Plaza, Magnolia Mall and Prince Georges Plaza are classified as Redevelopment Properties and are not included in the weighted average. 30 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] PREIT Services, LLC/ PREIT-RUBIN Inc. PREIT Services, LLC and PREIT-RUBIN Inc. are the Trust's arms for comprehensive development and management of retail, multifamily and commercial properties. PREIT-RUBIN Inc. provides third party management for 17 properties representing about 4.7 million gross leasable square feet. PREIT-RUBIN Inc. also provides third party owners with a full complement of management, leasing, asset management and development services. SUMMARY OF PORTFOLIO SERVICES
September 30, 2003 ---------------------------------------------------------------------------- Retail Multifamily Office/ Industrial TOTAL ---------------- ----------------- ------------------ ---------------- # sq ft # sq ft # sq ft # sq ft ---------------- ----------------- ------------------ ---------------- Managed Portfolio PREIT-Owned (1) 21 13,390,631 - - 4 254,791 25 13,645,422 Non-PREIT Owned (1)(2) 12 3,338,954 - - 3 757,238 15 4,096,192 ---------------- ----------------- ------------------ ---------------- TOTAL 33 16,729,585 - - 7 1,012,029 40 17,741,614 ---------------- ----------------- ------------------ ---------------- Leased Portfolio PREIT-Owned - - - - - - - Non-PREIT Owned 1 503,716 - - 1 119,482 2 623,198 ---------------- ----------------- ------------------ ---------------- TOTAL 1 503,716 - - 1 119,482 2 623,198 ---------------- ----------------- ------------------ ---------------- Asset Managed Portfolio PREIT-Owned (1) 7 4,254,969 - - - - 7 4,254,969 Non-PREIT Owned - - - - - - - - ---------------- ----------------- ------------------ ---------------- TOTAL 7 4,254,969 - - - - 7 4,254,969 ---------------- ----------------- ------------------ ---------------- Total Portfolio PREIT-Owned 28 17,645,600 - - 4 254,791 32 17,900,391 Non-PREIT Owned 13 3,842,670 - - 4 876,720 17 4,719,390 ---------------- ----------------- ------------------ ---------------- TOTAL 41 21,488,270 - - 8 1,131,511 49 22,619,781 ================ ================= ================== ================ June 30, 2003 ---------------------------------------------------------------------------- Retail Multifamily Office/ Industrial TOTAL ---------------- ----------------- ------------------ ---------------- # sq ft # sq ft # sq ft # sq ft ---------------- ----------------- ------------------ ---------------- Managed Portfolio PREIT-Owned (1) 21 13,245,258 2 1,338,000 4 254,791 27 14,838,049 Non-PREIT Owned (1)(2) 13 4,175,311 1 56,250 4 927,335 18 5,158,896 ---------------- ----------------- ------------------ ---------------- TOTAL 34 17,420,569 3 1,394,250 8 1,182,126 45 19,996,945 ---------------- ----------------- ------------------ ---------------- Leased Portfolio PREIT-Owned - - Non-PREIT Owned 2 1,099,960 - - 1 119,482 3 1,219,442 ---------------- ----------------- ------------------ ---------------- TOTAL 2 1,099,960 - - 1 119,482 3 1,219,442 ---------------- ----------------- ------------------ ---------------- Asset Managed Portfolio PREIT-Owned (1) 7 4,254,976 2 384,000 - - 9 4,638,976 Non-PREIT Owned - - - - - - - - ---------------- ----------------- ------------------ ---------------- TOTAL 7 4,254,976 2 384,000 - - 9 4,638,976 ---------------- ----------------- ------------------ ---------------- Total Portfolio PREIT-Owned 28 17,500,234 4 1,722,000 4 254,791 36 19,477,025 Non-PREIT Owned 15 5,275,271 1 56,250 5 1,046,817 21 6,378,338 ---------------- ----------------- ------------------ ---------------- TOTAL 43 22,775,505 5 1,778,250 9 1,301,608 57 25,855,363 ================ ================= ================== ================ NET GAIN (LOSS) IN CONTRACTS ---------------------------------------------------------------------------- Retail Multifamily Office/ Industrial TOTAL ---------------- ----------------- ------------------ ---------------- # sq ft # sq ft # sq ft # sq ft ---------------- ----------------- ------------------ ---------------- Managed Portfolio PREIT-Owned (1) - 145,373 (2) (1,338,000) - - (2) (1,192,627) Non-PREIT Owned (1)(2) (1) (836,357) (1) (56,250) (1) (170,097) (3) (1,062,704) ---------------- ----------------- ------------------ ---------------- TOTAL (1) (690,984) (3) (1,394,250) (1) (170,097) (5) (2,255,331) ---------------- ----------------- ------------------ ---------------- Leased Portfolio PREIT-Owned - - - - - - - - Non-PREIT Owned (1) (596,244) - - - - (1) (596,244) ---------------- ----------------- ------------------ ---------------- TOTAL (1) (596,244) - - - - (1) (596,244) ---------------- ----------------- ------------------ ---------------- Asset Managed Portfolio PREIT-Owned (1) - (7) (2) (384,000) - - (2) (384,007) Non-PREIT Owned - - - - - - - - ---------------- ----------------- ------------------ ---------------- TOTAL - (7) (2) (384,000) - - (2) (384,007) ---------------- ----------------- ------------------ ---------------- Total Portfolio PREIT-Owned - 145,366 (4) (1,722,000) - - (4) (1,576,634) Non-PREIT Owned (2) (1,432,601) (1) (56,250) (1) (170,097) (4) (1,658,948) ---------------- ----------------- ------------------ ---------------- TOTAL (2) (1,287,235) (5) (1,778,250) (1) (170,097) (8) (3,235,582) ================ ================= ================== ================
(1) The decrease in PREIT owned GLA resulted from the sale of PREIT two wholly-owned and two joint venture multifamily properties. (2) The reduction in Non-PREIT owned GLA resulted from the sale of Harrisburg East Mall and 400 Market office building. 31 Pennsylvania REIT FLASH REPORT (SEPTEMBER 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Financial Statement
Q3 03 (3 months ended 9/30/03) ----------------------------------------------------------------------- Corporate/ Other Retail Multifamily Properties TOTAL % Change --------------- ------------- ------------ -------------- -------- Real Estate Revenues: Same Store $ 18,477,804 $ 0 $ 87,781 $ 18,565,585 0.5% New 28,460,729 - - 28,460,729 N/A Redevelopment 5,563,331 - - 5,563,331 N/A Discontinued Operations - 1,331,576 - 1,331,576 -------------- ------------- ------------ -------------- -------- Total Real Estate Revenues 52,501,864 1,331,576 87,781 53,921,221 35.0% -------------- ------------- ------------ -------------- -------- Operating Expenses (includes minority interest in properties): Same Store 4,934,977 - 3,884 4,938,861 8.7% New 14,179,161 - - 14,179,161 N/A Redevelopment 1,924,484 - - 1,924,484 N/A Discontinued Operations - 712,486 712,486 -88.6% -------------- ------------- ------------ -------------- -------- Total Operating Expenses 21,038,622 712,486 3,884 21,754,992 61.5% -------------- ------------- ------------ -------------- -------- NOI: Same Store 13,542,827 - 83,897 13,626,724 -2.2% New 14,281,568 - - 14,281,568 N/A Redevelopment 3,638,847 - - 3,638,847 N/A Discontinued Operations - 619,090 - 619,090 -92.4% -------------- ------------- ------------ -------------- -------- NOI (2) 31,463,242 619,090 83,897 32,166,229 21.5% -------------- ------------- ------------ -------------- -------- OTHER INCOME (EXPENSES): Management Company Revenue - - 1,972,607 1,972,607 -19.3% Interest Income - - 217,023 217,023 50.7% General & Administrative Corporate Payroll - - (3,707,416) (3,707,416) 0.3% Other G&A Expenses - - (4,615,793) (4,615,793) 83.4% -------------- ------------- ------------ -------------- -------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 31,463,242 619,090 (6,049,682) 26,032,650 13.9% -------------- ------------- ------------ -------------- -------- Interest Expense (11,243,044) (222,542) - (11,465,586) 8.2% Depreciation and Amortization (10,213,658) - (12,788) (10,226,446) 39.2% Gain(loss) on Sale of Interests in RE - 6,228,839 6,228,839 N/A DISCONTINUED OPERATIONS Income from Disposed Real Estate - - - - N/A Minority Interest of O.P. Unitholders - - (2,382,461) (2,382,461) N/A Gain(loss) on Disposition of Discontinued Operations 27,725,759 - 27,725,759 N/A -------------- ------------- ------------ -------------- -------- TOTAL DISCONTINUED OPERATIONS - 27,725,759 (2,382,461) 25,343,298 N/A -------------- ------------- ------------ -------------- -------- Extraordinary item(Loss on early extinguishment of debt) - - - - N/A Minority Interest of O.P. Unit - - (989,253) (989,253) 297.4% Holders -------------- ------------- ------------ -------------- -------- NET INCOME 10,006,540 34,351,146 (9,434,184) 34,923,502 327.1% -------------- ------------- ------------ -------------- -------- Gain on Sale of Real Estate - (33,954,598) - (33,954,598) N/A Depreciation and Amor. of Real Estate 10,213,658 - 12,788 10,226,446 39.2% FFO Adjustments - - 3,306,714 3,306,714 285.5% -------------- ------------- ------------ -------------- -------- FFO 20,220,198 396,548 (6,114,682) 14,502,064 17.9% -------------- ------------- ------------ -------------- -------- Adj. Straight Lining of Base Rents (765,238) - - (765,238) 189.6% Recurring Capital Expenditures (108,438) (122,635) - (231,073) -68.3% Amortization of debt premium (1,742,283) (1,742,283) -------------- ------------- ------------ -------------- -------- FAD $ 17,604,239 $ 273,913 (6,114,682) $ 11,763,470 4.1% -------------- ------------- ------------ -------------- -------- Dividends $ 12,718,682 38.5% Share Price (at close) $ 33.45 29.9% Weighted Average Number of Shares 19,488,367 17.6% WA number of Shares and O.P. Units 21,537,479 17.7% -------------- ------------- ------------ -------------- -------- Net Income/Share $ 1.79 263.0% FFO/Share and O.P. Units $ 0.67 0.2% FAD/Share and O.P. Units $ 0.55 -11.5% Dividend/Share and O.P. Units $ 0.51 0.0% ============== ============= ============ ============== ======== Q3 02 (3 months ended 9/30/02) ----------------------------------------------------------- Corporate/ Other Retail Multifamily Properties TOTAL -------------- ------------- ------------ -------------- Real Estate Revenues: Same Store $ 18,386,810 $ 0 $ 82,858 $ 18,469,668 New 1,772,287 - - 1,772,287 Redevelopment 5,290,158 - - 5,290,158 Discontinued Operations - 14,418,208 - 14,418,208 -------------- ------------- ------------ -------------- Total Real Estate Revenues 25,449,255 14,418,208 82,858 39,950,321 -------------- ------------- ------------ -------------- Operating Expenses (includes minority interest in properties): Same Store 4,532,300 - 10,041 4,542,341 New 728,331 - - 728,331 Redevelopment 1,942,062 - - 1,942,062 Discontinued Operations - 6,259,004 6,259,004 -------------- ------------- ------------ -------------- Total Operating Expenses 7,202,693 6,259,004 10,041 13,471,738 -------------- ------------- ------------ -------------- NOI: Same Store 13,854,510 - 72,817 13,927,327 New 1,043,956 - - 1,043,956 Redevelopment 3,348,096 - - 3,348,096 Discontinued Operations - 8,159,204 8,159,204 -------------- ------------- ------------ -------------- NOI (2) 18,246,562 8,159,204 72,817 26,478,583 -------------- ------------- ------------ -------------- OTHER INCOME (EXPENSES): Management Company Revenue - - 2,443,592 2,443,592 Interest Income - - 144,042 144,042 General & Administrative Corporate Payroll - - (3,695,921) (3,695,921) Other G&A Expenses - - (2,516,173) (2,516,173) -------------- ------------- ------------ -------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 18,246,562 8,159,204 (3,551,643) 22,854,123 -------------- ------------- ------------ -------------- Interest Expense (7,075,154) (3,525,258) - (10,600,412) Depreciation and Amortization (5,021,188) (2,312,496) (12,915) (7,346,599) Gain(loss) on Sale of Interests in RE 4,085,164 - - 4,085,164 DISCONTINUED OPERATIONS Income from Disposed Real Estate 71,772 - - 71,772 Minority Interest of O.P. Unitholders - - (637,292) (637,292) Gain(loss) on Disposition of Discontinued Operations - - - - -------------- ------------- ------------ -------------- TOTAL DISCONTINUED OPERATIONS 71,772 - (637,292) (565,520) -------------- ------------- ------------ -------------- Extraordinary item(Loss on early - - - extinguishment of debt) Minority Interest of O.P. Unit Holders - - (248,916) (248,916) -------------- ------------- ------------ -------------- NET INCOME 10,307,156 2,321,450 (4,450,766) 8,177,840 -------------- ------------- ------------ -------------- Gain on Sale of Real Estate (4,085,164) - - (4,085,164) Depreciation and Amor. of Real Estate 5,021,188 2,312,496 12,915 7,346,599 FFO Adjustments - - 857,692 857,692 -------------- ------------- ------------ -------------- FFO 11,243,180 4,633,946 (3,580,159) 12,296,967 -------------- ------------- ------------ -------------- Adj. Straight Lining of Base Rents (264,272) - - (264,272) Recurring Capital Expenditures (51,332) (678,058) - (729,390) Amortization of debt premium - - - - -------------- ------------- ------------ -------------- FAD $ 10,927,576 $ 3,955,888 $ (3,580,159) $ 11,303,305 -------------- ------------- ------------ -------------- Dividends $ 9,182,493 Share Price (at close) $ 25.76 Weighted Average Number of Shares 16,566,418 WA number of Shares and O.P. Units 18,305,378 -------------- ------------- ------------ -------------- Net Income/Share $ 0.49 FFO/Share and O.P. Units $ 0.67 FAD/Share and O.P. Units $ 0.62 Dividend/Share and O.P. Units $ 0.51 ============== ============= ============ ==============
Balance Sheet
Q3 03 -------------------------------------------------------------- Corporate/ Other % Retail Multifamily Properties Total Change --------------- ------------- ------------- --------------- -------- Investment in Real Estate, at cost $ 1,289,890,542 $ - $ 20,178,064 $ 1,310,068,606 41.4% Accumulated Depreciation (95,312,157) - (2,064,231) (97,376,388) -42.5% Investment in and advances to Partnership and JVs - - 1,200,000 1,200,000 186.5% Other Assets 114,932,077 1,177,015 59,001,877 175,110,969 89.5% --------------- ------------- ------------- --------------- -------- Total Assets $ 1,309,510,462 $ 1,177,015 $ 78,315,710 $ 1,389,003,187 63.5% --------------- ------------- ------------- --------------- -------- Mortgage Notes $ 739,061,360 $ - $ - $ 739,061,360 54.3% Line of Credit - - - - -100.0% Acquisition Term Loan & Unsecured Line of Credit - - - - N/A Other Liabilities 27,237,935 951,750 15,155,079 43,344,764 37.9% --------------- ------------- ------------- --------------- -------- Total Liabilities $ 766,299,295 $ 951,750 $ 15,155,079 $ 782,406,124 24.0% --------------- ------------- ------------- --------------- -------- Minority Interest $ 5,991,467 - $ 58,270,123 $ 64,261,590 101.6% Total Shareholders Equity - - 542,335,473 542,335,473 190.0% --------------- ------------- ------------- --------------- -------- Total Liabilities and Shareholder Equity $ 772,290,762 $ 951,750 $ 615,760,675 $ 1,389,003,187 63.5% --------------- ------------- ------------- --------------- -------- Q3 02 -------------------------------------------------------------- Corporate/ Other Retail Multifamily Properties Total --------------- ------------- ------------- --------------- Investment in Real Estate, at cost $ 614,624,880 $ 287,375,109 $ 24,422,106 $ 926,422,095 Accumulated Depreciation (74,726,868) (92,749,150) (2,012,698) (169,488,716) Investment in and advances to Partnership and JVs - - 418,851 418,851 Other Assets 46,280,608 10,628,350 35,488,763 92,397,721 --------------- ------------- ------------- --------------- Total Assets $ 586,178,620 $ 205,254,309 $ 58,317,022 $ 849,749,951 --------------- ------------- ------------- --------------- Mortgage Notes $ 281,212,563 $ 197,701,413 $ - $ 478,913,976 Line of Credit 87,952,970 - 32,547,030 120,500,000 Acquisition Term Loan & Unsecured Line of Credit - - - - Other Liabilities 12,095,668 8,776,694 10,561,956 31,434,318 --------------- ------------- ------------- --------------- Total Liabilities $ 381,261,201 $ 206,478,107 $ 43,108,986 $ 630,848,294 --------------- ------------- ------------- --------------- Minority Interest $ 126,715 - $ 31,755,163 $ 31,881,878 Total Shareholders Equity - - 187,019,779 187,019,779 --------------- ------------- ------------- --------------- Total Liabilities and Shareholder Equity $ 381,387,916 $ 206,478,107 $ 261,883,928 $ 849,749,951 --------------- ------------- ------------- ---------------
Ratios Q3 03 Change Q3 02 ------- ----------- ------- NOI/Investment in Real Estate 2.5% -0.4% 2.9% Total Dividends/Total FFO 87.7% 13.0% 74.7% Dividends/FFO per share 75.7% -0.2% 75.9% ======= =========== ======= NOTE: Reconciliation to GAAP is on pages 33 to 36. 32 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] BALANCE SHEET-RECONCILIATION TO GAAP (Wholly Owned vs. JVs)
September 30, 2003 ------------------------------------------------------------------------------- Combined Adjustments to Assets Held TOTAL (1) Equity Method Subtotal for Sale TOTAL --------------- -------------- --------------- ------------ --------------- ASSETS Investments in Real Estate, at cost Retail Properties $ 1,289,890,542 $ (146,787,604) $ 1,143,102,938 $ - $ 1,143,102,938 Multifamily Properties - - - - - Industrial Properties 2,504,211 - 2,504,211 - 2,504,211 Construction In Progress 17,673,853 (1,563,289) 16,110,564 - 16,110,564 --------------- -------------- --------------- ------------ --------------- TOTAL INVESTMENTS IN REAL ESTATE 1,310,068,606 (148,350,893) 1,161,717,713 - 1,161,717,713 Accumulated Depreciation (97,376,388) 36,454,134 (60,922,254) - (60,922,254) --------------- -------------- --------------- ------------ --------------- Net Real Estate 1,212,692,218 (111,896,759) 1,100,795,459 - 1,100,795,459 --------------- -------------- --------------- ------------ --------------- Investment in and advances to Partnerships and JVs 1,200,000 14,691,677 15,891,677 - 15,891,677 --------------- -------------- --------------- ------------ --------------- 1,213,892,218 (97,205,082) 1,116,687,136 - 1,116,687,136 --------------- -------------- --------------- ------------ --------------- Allowance for Possible Losses --------------- -------------- --------------- ------------ --------------- 1,213,892,218 (97,205,082) 1,116,687,136 - 1,116,687,136 --------------- -------------- --------------- ------------ --------------- Other Assets: Cash and Cash Equivalents 43,512,963 (5,113,326) 38,399,637 38,399,637 Rents and Other Receivables 21,909,843 (8,570,389) 13,339,454 - 13,339,454 Assets held for sale - - - - - Intangible Assets 55,957,597 - 55,957,597 - 55,957,597 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 53,730,566 (12,102,886) 41,627,680 41,627,680 --------------- -------------- --------------- ------------ --------------- TOTAL OTHER ASSETS 175,110,969 (25,786,601) 149,324,368 - 149,324,368 --------------- -------------- --------------- ------------ --------------- TOTAL ASSETS 1,389,003,187 (122,991,683) 1,266,011,504 - 1,266,011,504 =============== ============== =============== ============ =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 739,061,360 (118,525,862) 620,535,498 - 620,535,498 Bank Loans Payable - - - - - Acquisition Term Loan & Unsecured Line of Credit - - - - - Assets held for sale 951,750 (36,458) 915,292 - 915,292 Other Liabilities (2) 42,393,014 (4,429,363) 37,963,651 37,963,651 --------------- -------------- --------------- ------------ --------------- TOTAL LIABILITIES 782,406,124 (122,991,683) 659,414,441 - 659,414,441 --------------- -------------- --------------- ------------ --------------- --------------- -------------- --------------- ------------ --------------- Minority Interest 64,261,590 - 64,261,590 - 64,261,590 --------------- -------------- --------------- ------------ --------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par 23,480,595 - 23,480,595 - 23,480,595 Capital Contributed in Excess of Par 407,738,529 - 407,738,529 - 407,738,529 Restricted Stock (3,901,106) - (3,901,106) - (3,901,106) Other Comprehensive Income (1,928,590) - (1,928,590) - (1,928,590) Retained Earnings (Distributions in Excess of Net Income) 116,946,045 - 116,946,045 - 116,946,045 --------------- -------------- --------------- ------------ --------------- TOTAL SHAREHOLDERS' EQUITY 542,335,473 - 542,335,473 - 542,335,473 --------------- -------------- --------------- ------------ --------------- --------------- -------------- --------------- ------------ --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,389,003,187 $ (122,991,683) $ 1,266,011,504 $ - $ 1,266,011,504 =============== ============== =============== ============ =============== December 31, 2002 ------------------------------------------------------------------------------- Combined Adjustments to Assets Held TOTAL (1) Equity Method Subtotal for Sale TOTAL --------------- -------------- --------------- ------------ --------------- ASSETS Investments in Real Estate, at cost Retail Properties $ 620,345,902 $ (197,299,357) $ 423,046,545 $ - $ 423,046,545 Multifamily Properties 305,335,579 (14,728,865) 290,606,714 290,606,714 Industrial Properties 2,504,211 - 2,504,211 - 2,504,211 Construction In Progress 24,825,973 (1,554,110) 23,271,863 - 23,271,863 --------------- -------------- --------------- ------------ --------------- TOTAL INVESTMENTS IN REAL ESTATE 953,011,665 (213,582,332) 739,429,333 - 739,429,333 Accumulated Depreciation (180,493,036) 43,759,779 (136,733,257) (136,733,257) --------------- -------------- --------------- ------------ --------------- Net Real Estate 772,518,629 (169,822,553) 602,696,076 - 602,696,076 --------------- -------------- --------------- ------------ --------------- Investment in and advances to Partnerships and JVs 105,309 25,256,374 25,361,683 - 25,361,683 --------------- -------------- --------------- ------------ --------------- 772,623,938 (144,566,179) 628,057,759 - 628,057,759 --------------- -------------- --------------- ------------ --------------- Allowance for Possible Losses --------------- -------------- --------------- ------------ --------------- 772,623,938 (144,566,179) 628,057,759 - 628,057,759 --------------- -------------- --------------- ------------ --------------- Other Assets: Cash and Cash Equivalents 18,628,137 (5,075,355) 13,552,782 - 13,552,782 Rents and Other Receivables 23,365,079 (10,122,016) 13,243,063 - 13,243,063 Assets held for sale - - - - - Intangible Assets 16,679,886 - 16,679,886 - 16,679,886 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 46,111,466 (13,981,793) 32,129,673 - 32,129,673 --------------- -------------- --------------- ------------ --------------- TOTAL OTHER ASSETS 104,784,568 (29,179,164) 75,605,404 - 75,605,404 --------------- -------------- --------------- ------------ --------------- TOTAL ASSETS 877,408,506 (173,745,343) 703,663,163 - 703,663,163 =============== ============== =============== ============ =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 486,479,770 (166,728,446) 319,751,324 - 319,751,324 Bank Loans Payable 130,800,000 - 130,800,000 - 130,800,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Assets held for sale - - - - - Other Liabilities (2) 39,643,762 (7,016,897) 32,626,865 - 32,626,865 --------------- -------------- --------------- ------------ --------------- TOTAL LIABILITIES 656,923,532 (173,745,343) 483,178,189 - 483,178,189 --------------- -------------- --------------- ------------ --------------- --------------- -------------- --------------- ------------ --------------- Minority Interest 32,472,437 - 32,472,437 - 32,472,437 --------------- -------------- --------------- ------------ --------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par 16,697,117 - 16,697,117 - 16,697,117 Capital Contributed in Excess of Par 216,768,855 - 216,768,855 - 216,768,855 Restricted Stock (2,513,191) - (2,513,191) - (2,513,191) Other Comprehensive Income (4,365,728) - (4,365,728) - (4,365,728) Retained Earnings (Distributions in Excess of Net Income) (38,574,516) - (38,574,516) - (38,574,516) --------------- -------------- --------------- ------------ --------------- TOTAL SHAREHOLDERS' EQUITY 188,012,537 - 188,012,537 - 188,012,537 --------------- -------------- --------------- ------------ --------------- --------------- -------------- --------------- ------------ --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 877,408,506 $ (173,745,343) $ 703,663,163 $ - $ 703,663,163 =============== ============== =============== ============ =============== September 30, 2002 ------------------------------------------------------------------------------- Combined Adjustments to Assets Held TOTAL (1) Equity Method Subtotal for Sale TOTAL --------------- -------------- --------------- ------------ --------------- ASSETS Investments in Real Estate, at cost Retail Properties $ 614,624,880 $ (197,652,779) $ 416,972,101 $ - $ 416,972,101 Multifamily Properties 287,375,109 (29,314,705) 258,060,404 - 258,060,404 Industrial Properties 2,504,211 - 2,504,211 - 2,504,211 Construction In Progress 21,917,895 (1,549,224) 20,368,671 - 20,368,671 --------------- -------------- --------------- ------------ --------------- TOTAL INVESTMENTS IN REAL ESTATE 926,422,095 (228,516,708) 697,905,387 - 697,905,387 Accumulated Depreciation (169,488,716) 46,658,613 (122,830,103) - (122,830,103) --------------- -------------- --------------- ------------ --------------- Net Real Estate 756,933,379 (181,858,095) 575,075,284 - 575,075,284 --------------- -------------- --------------- ------------ --------------- Investment in and advances to Partnerships and JVs 418,851 26,072,820 26,491,671 - 26,491,671 --------------- -------------- --------------- ------------ --------------- 757,352,230 (155,785,275) 601,566,955 - 601,566,955 --------------- -------------- --------------- ------------ --------------- Allowance for Possible Losses --------------- -------------- --------------- ------------ --------------- 757,352,230 (155,785,275) 601,566,955 - 601,566,955 --------------- -------------- --------------- ------------ --------------- Other Assets: Cash and Cash Equivalents 16,130,074 (5,974,345) 10,155,729 - 10,155,729 Rents and Other Receivables 17,151,758 (8,035,546) 9,116,212 - 9,116,212 Assets held for sale - - - - - Intangible Assets 16,679,886 - 16,679,886 - 16,679,886 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 42,436,003 (14,264,374) 28,171,629 - 28,171,629 --------------- -------------- --------------- ------------ --------------- TOTAL OTHER ASSETS 92,397,721 (28,274,265) 64,123,456 - 64,123,456 --------------- -------------- --------------- ------------ --------------- TOTAL ASSETS 849,749,951 (184,059,540) 665,690,411 - 665,690,411 =============== ============== =============== ============ =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 478,913,976 (176,919,931) 301,994,045 - 301,994,045 Bank Loans Payable 120,500,000 - 120,500,000 - 120,500,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Assets held for sale - - - - - Other Liabilities (2) 31,434,318 (7,139,609) 24,294,709 - 24,294,709 --------------- -------------- --------------- ------------ --------------- TOTAL LIABILITIES 630,848,294 (184,059,540) 446,788,754 - 446,788,754 --------------- -------------- --------------- ------------ --------------- --------------- -------------- --------------- ------------ --------------- Minority Interest 31,881,878 - 31,881,878 - 31,881,878 --------------- -------------- --------------- ------------ --------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par 16,602,759 - 16,602,759 - 16,602,759 Capital Contributed in Excess of Par 214,543,587 - 214,543,587 - 214,543,587 Restricted Stock (3,147,772) - (3,147,772) - (3,147,772) Other Comprehensive Income (3,486,703) - (3,486,703) - (3,486,703) Retained Earnings (Distributions in Excess of Net Income) (37,492,092) - (37,492,092) - (37,492,092) --------------- -------------- --------------- ------------ --------------- TOTAL SHAREHOLDERS' EQUITY 187,019,779 - 187,019,779 - 187,019,779 --------------- -------------- --------------- ------------ --------------- --------------- -------------- --------------- ------------ --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 849,749,951 $ (184,059,540) $ 665,690,411 $ - $ 665,690,411 =============== ============== =============== ============ ===============
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's share of the Total Assets and Liabilities of the underlying properties. The Company calculates the "gross up" by applying its percentage ownership interest to the historical financial statements of its equity method investments. (2) For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses and Other Liabilities. (3) PREIT's percent of JVs is "grossed up" to reflect the Trust's share of the Total Assets and Liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Trust's Equity in these properties. 33 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] INCOME STATEMENT-RECONCILIATION TO GAAP(1) QUARTERLY COMPARISON (Wholly Owned vs. JV's)
Q3 03 (3 months ended 9/30/03) ---------------------------------------------------------------------------------------- Combined Adjustments to Assets Held TOTAL % TOTAL(3) Equity Method Subtotal for Sale Total CHANGE -------------- -------------- -------------- -------------- -------------- -------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ 36,054,898 $ (6,479,632) $ 29,575,266 $ (929,099) $ 28,646,167 143.9% Straight-Lining of Base Rents 765,238 (80,188) 685,050 685,050 274.5% Percentage Rents 544,610 (75,212) 469,398 469,398 40.7% Lease Termination 29,393 - 29,393 (2,264) 27,129 -92.1% Expense Recoveries & Other Income 16,527,082 (2,321,149) 14,205,933 (61,527) 14,144,406 279.7% -------------- -------------- -------------- -------------- -------------- -------- TOTAL REVENUES 53,921,221 (8,956,181) 44,965,040 (992,890) 43,972,150 169.2% -------------- -------------- -------------- -------------- -------------- -------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 15,867,826 (2,480,268) 13,387,558 (449,158) 12,938,400 310.1% Real Estate Taxes 5,576,415 (807,631) 4,768,784 (42,536) 4,726,248 316.5% Minority Interest in properties 310,751 - 310,751 310,751 -------------- -------------- -------------- -------------- -------------- -------- TOTAL EXPENSES 21,754,992 (3,287,899) 18,467,093 (491,694) 17,975,399 319.1% -------------- -------------- -------------- -------------- -------------- -------- NET OPERATING INCOME 32,166,229 (5,668,282) 26,497,947 (501,196) 25,996,751 115.9% ============== ============== ============== ============== ============== ======== OTHER INCOME (EXPENSES) Management Company Revenue 1,972,607 - 1,972,607 1,972,607 -19.3% Interest Income $ 217,023 - 217,023 217,023 50.7% General & Administrative: Corporate Payroll (3,707,416) - (3,707,416) (3,707,416) 0.3% Other G&A Expenses (4,615,793) - (4,615,793) (4,615,793) 83.4% -------------- -------------- -------------- -------------- -------------- -------- Earnings before interest expenses, taxes, depreciation and amortization 26,032,650 (5,668,282) 20,364,368 (501,196) 19,863,172 135.9% -------------- -------------- -------------- -------------- -------------- -------- Interest Expense (2) (11,465,586) 2,812,706 (8,652,880) 169,696 (8,483,184) 108.9% Depreciation & Amortization (10,226,446) 1,034,646 (9,191,800) - (9,191,800) 178.7% -------------- -------------- -------------- -------------- -------------- -------- TOTAL OTHER INCOME (EXPENSES) (21,692,032) 3,847,352 (17,844,680) 169,696 (17,674,984) 140.2% -------------- -------------- -------------- -------------- -------------- -------- Equity in Income of partnerships and JVs - 1,820,930 1,820,930 1,820,930 -------------- -------------- -------------- -------------- -------------- -------- Gains (losses) on sales of interests in Real Estate 6,228,839 - 6,228,839 - 6,228,839 N/A -------------- -------------- -------------- -------------- -------------- -------- Income before Minority Interest 10,569,457 - 10,569,457 (331,500) 10,237,957 268.5% -------------- -------------- -------------- -------------- -------------- -------- Minority Interest of O.P. Unitholders (989,253) - (989,253) - (989,253) 297.4% -------------- -------------- -------------- -------------- -------------- -------- Income from Operations 9,580,204 - 9,580,204 (331,500) 9,248,704 265.6% -------------- -------------- -------------- -------------- -------------- -------- Discontinued Operations: Income from Disposed Real Estate - - - 331,500 331,500 -84.9% Equity in Income of partnerships and JVs - Minority Interest of O.P. Unitholders (2,382,461) - (2,382,461) (2,382,461) N/A Gain (losses) on Disposition of Discontinued Operations 27,725,759 - 27,725,759 27,725,759 N/A -------------- -------------- -------------- -------------- -------------- -------- TOTAL DISCONTINUED OPERATIONS 25,343,298 - 25,343,298 331,500 25,674,798 N/A -------------- -------------- -------------- -------------- -------------- -------- Extraordinary item(Loss on early extinguishment of debt) - - - - - N/A -------------- -------------- -------------- -------------- -------------- -------- NET INCOME $ 34,923,502 $ - $ 34,923,502 $ - $ 34,923,502 327.1% ============== ============== ============== ============== ============== ======== Q3 02 (3 months ended 9/30/02) ------------------------------------------------------------------------------ Combined Adjustments to Assets Held TOTAL(3) Equity Method Subtotal for Sale Total -------------- -------------- -------------- -------------- -------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ 31,786,391 $ (8,038,742) $ 23,747,649 $ (12,001,888) $ 11,745,761 Straight-Lining of Base Rents 264,272 (81,350) 182,922 - 182,922 Percentage Rents 407,801 (74,135) 333,666 333,666 Lease Termination 426,234 - 426,234 (81,186) 345,048 Expense Recoveries & Other Income 7,065,623 (2,666,190) 4,399,433 (674,512) 3,724,921 -------------- -------------- -------------- -------------- -------------- TOTAL REVENUES 39,950,321 (10,860,417) 29,089,904 (12,757,586) 16,332,318 -------------- -------------- -------------- -------------- -------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 10,224,986 (2,831,965) 7,393,021 (4,238,321) 3,154,700 Real Estate Taxes 3,246,752 (894,273) 2,352,479 (1,217,816) 1,134,663 Minority Interest in properties -------------- -------------- -------------- -------------- -------------- TOTAL EXPENSES 13,471,738 (3,726,238) 9,745,500 (5,456,137) 4,289,363 -------------- -------------- -------------- -------------- -------------- NET OPERATING INCOME 26,478,583 (7,134,179) 19,344,404 (7,301,449) 12,042,955 ============== ============== ============== ============== ============== OTHER INCOME (EXPENSES) Management Company Revenue 2,443,592 - 2,443,592 - 2,443,592 Interest Income 144,042 - 144,042 - 144,042 General & Administrative: Corporate Payroll (3,695,921) - (3,695,921) - (3,695,921) Other G&A Expenses (2,516,173) - (2,516,173) - (2,516,173) -------------- -------------- -------------- -------------- -------------- Earnings before interest expenses, taxes, depreciation and amortization 22,854,123 (7,134,179) 15,719,944 (7,301,449) 8,418,495 -------------- -------------- -------------- -------------- -------------- Interest Expense (2) (10,600,412) 3,444,302 (7,156,110) 3,095,320 (4,060,790) Depreciation & Amortization (7,346,599) 1,971,087 (5,375,512) 2,077,467 (3,298,045) -------------- -------------- -------------- -------------- -------------- TOTAL OTHER INCOME (EXPENSES) (17,947,011) 5,415,389 (12,531,622) 5,172,787 (7,358,835) -------------- -------------- -------------- -------------- -------------- Equity in Income of partnerships and JVs 1,718,790 1,718,790 1,718,790 -------------- -------------- -------------- -------------- -------------- Gains (losses) on sales of interests in Real Estate - - - - - -------------- -------------- -------------- -------------- -------------- Income before Minority Interest 4,907,112 - 4,907,112 (2,128,662) 2,778,450 -------------- -------------- -------------- -------------- -------------- Minority Interest of O.P. Unitholders (248,916) - (248,916) - (248,916) -------------- -------------- -------------- -------------- -------------- Income from Operations 4,658,196 - 4,658,196 (2,128,662) 2,529,534 -------------- -------------- -------------- -------------- -------------- Discontinued Operations: Income from Disposed Real Estate 71,772 - 71,772 2,128,662 2,200,434 Equity in Income of partnerships and JVs - Minority Interest of O.P. Unitholders (637,292) - (637,292) - (637,292) Gain (losses) on Disposition of Discontinued Operations 4,085,164 - 4,085,164 - 4,085,164 -------------- -------------- -------------- -------------- -------------- TOTAL DISCONTINUED OPERATIONS 3,519,644 - 3,519,644 2,128,662 5,648,306 -------------- -------------- -------------- -------------- -------------- Extraordinary item(Loss on early extinguishment of debt) - - - - - -------------- -------------- -------------- -------------- -------------- NET INCOME $ 8,177,840 $ - $ 8,177,840 $ - $ 8,177,840 ============== ============== ============== ============== ==============
(1) Prior period income and expenses have been restated to adjust for discontinued operations. (2) Capitalized interest expense for the line of credit and construction loans of $324,187 not included in the quarter ended 9/30/03 and $374,570 not included in the quarter ended 6/30/02. (3) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's share of the Total Revenues and Expenses of the underlying properties. The Company calculates the "gross up" by applying its percentage ownership interest to the historical financial statements of its equity method investments. 34 Pennsylvania REIT FLASH REPORT-RECONCILIATION TO GAAP (September 30, 2003) FINANCIAL STATEMENT LOGO OF PREIT PEI LISTED NYSE
Q3 03 (3 months ended 9/30/03) ------------------------------------------------------------------------------ Combined Adjustments to Assets Held TOTAL Equity Method Subtotal for Sale Total -------------- -------------- -------------- -------------- -------------- Real Estate Revenues: Same Store $ 18,565,585 (7,441,298) $ 11,124,287 - $ 11,124,287 New 28,460,729 (1,176,197) 27,284,532 - 27,284,532 Redevelopment 5,563,331 - 5,563,331 - 5,563,331 Discontinued 1,331,576 (338,686) 992,890 (992,890) - -------------- -------------- -------------- -------------- -------------- Total Real Estate Revenues 53,921,221 (8,956,181) 44,965,040 (992,890) 43,972,150 -------------- -------------- -------------- -------------- -------------- Operating Expenses: Same Store 4,938,861 (2,346,100) 2,592,761 - 2,592,761 New 14,179,161 (721,007) 13,458,154 - 13,458,154 Redevelopment 1,924,484 - 1,924,484 - 1,924,484 Discontinued 712,486 (220,792) 491,694 (491,694) - -------------- -------------- -------------- -------------- -------------- Total Operating Expenses 21,754,992 (3,287,899) 18,467,093 (491,694) 17,975,399 -------------- -------------- -------------- -------------- -------------- NOI: Same Store 13,626,724 (5,095,198) 8,531,526 - 8,531,526 New 14,281,568 (455,190) 13,826,378 - 13,826,378 Redevelopment 3,638,847 - 3,638,847 - 3,638,847 Discontinued 619,090 (117,894) 501,196 (501,196) - -------------- -------------- -------------- -------------- -------------- NOI (2) 32,166,229 (5,668,282) 26,497,947 (501,196) 25,996,751 -------------- -------------- -------------- -------------- -------------- OTHER INCOME (EXPENSES): Management Company Revenue 1,972,607 - 1,972,607 - 1,972,607 Interest Income 217,023 - 217,023 - 217,023 General & Administrative: - - - - Corporate Payroll (3,707,416) - (3,707,416) - (3,707,416) Other G&A Expenses (4,615,793) - (4,615,793) - (4,615,793) -------------- -------------- -------------- -------------- -------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 26,032,650 (5,668,282) 20,364,368 (501,196) 19,863,172 -------------- -------------- -------------- -------------- -------------- Interest Expense (11,465,586) 2,812,706 (8,652,880) $ 169,696 (8,483,184) Depreciation and Amortization (10,226,446) 1,034,646 (9,191,800) - (9,191,800) Equity in income of partnership and JVs - 1,820,930 1,820,930 - 1,820,930 Gain(loss) on Sale of Interests in RE 6,228,839 - 6,228,839 - 6,228,839 DISCONTINUED OPERATIONS: - - - - - Income from Disposed Real Estate - - - 331,500 331,500 Equity in income of partnership and JVs - - - - - Minority Interest of O.P. Unitholders (2,382,461) - (2,382,461) - (2,382,461) Gain (losses) on Disposition of Discontinued Operations 27,725,759 - 27,725,759 27,725,759 -------------- -------------- -------------- -------------- -------------- TOTAL DISCONTINUED OPERATIONS 25,343,298 - 25,343,298 331,500 25,674,798 -------------- -------------- -------------- -------------- -------------- Extraordinary item(Loss on early extinguishment of debt) - - - - - Minority Interest of OP Unit Holders (989,253) - (989,253) - (989,253) -------------- -------------- -------------- -------------- -------------- NET INCOME 34,923,502 - 34,923,502 - 34,923,502 -------------- -------------- -------------- -------------- -------------- Gain on Sale of Real Estate (33,954,598) - (33,954,598) - (33,954,598) Depreciation and Amor. of Real Estate 10,226,446 - 10,226,446 - 10,226,446 FFO Adjustments 3,306,714 - 3,306,714 - 3,306,714 -------------- -------------- -------------- -------------- -------------- FFO 14,502,064 - 14,502,064 - 14,502,064 -------------- -------------- -------------- -------------- -------------- Adj. Straight Lining of Base Rents (765,238) - (765,238) - (765,238) Recurring Capital Expenditures (231,073) - (231,073) - (231,073) Amortization of Debt Premium (1,742,283) - (1,742,283) - (1,742,283) -------------- -------------- -------------- -------------- -------------- FAD $ 11,763,470 $ - $ 11,763,470 $ 0 $ 11,763,470 -------------- -------------- -------------- -------------- -------------- Dividends $ 12,718,682 Share Price (at close) $ 33.45 Weighted Average Number of Shares 19,488,367 WA number of Shares and OP Units 21,537,479 -------------- Net Income/Share $ 1.79 FFO/Share and OP Units $ 0.67 FAD/Share and OP Units $ 0.55 Dividend/Share and OP Units $ 0.51 ============== Q3 02 (3 months ended 9/30/02) ------------------------------------------------------------------------------ Combined Adjustments to Assets Held TOTAL Equity Method Subtotal for Sale Total -------------- -------------- -------------- -------------- -------------- Real Estate Revenues: Same Store $ 18,469,668 (7,427,508) $ 11,042,160 - $ 11,042,160 New 1,772,287 (1,772,287) - - - Redevelopment 5,290,158 - 5,290,158 - 5,290,158 Discontinued 14,418,208 (1,660,622) 12,757,586 (12,757,586) - -------------- -------------- -------------- -------------- -------------- Total Real Estate Revenues 39,950,321 (10,860,417) 29,089,904 (12,757,586) 16,332,318 -------------- -------------- -------------- -------------- -------------- Operating Expenses: Same Store 4,542,341 (2,195,040) 2,347,301 - 2,347,301 New 728,331 (728,331) - - - Redevelopment 1,942,062 - 1,942,062 - 1,942,062 Discontinued 6,259,004 (802,867) 5,456,137 (5,456,137) - -------------- -------------- -------------- -------------- -------------- Total Operating Expenses 13,471,738 (3,726,238) 9,745,500 (5,456,137) 4,289,363 -------------- -------------- -------------- -------------- -------------- NOI: Same Store 13,927,327 (5,232,468) 8,694,859 - 8,694,859 New 1,043,956 (1,043,956) - - - Redevelopment 3,348,096 - 3,348,096 - 3,348,096 Discontinued 8,159,204 (857,755) 7,301,449 (7,301,449) - -------------- -------------- -------------- -------------- -------------- NOI (2) 26,478,583 (7,134,179) 19,344,404 (7,301,449) 12,042,955 -------------- -------------- -------------- -------------- -------------- OTHER INCOME (EXPENSES): Management Company Revenue 2,443,592 - 2,443,592 - 2,443,592 Interest Income 144,042 - 144,042 - 144,042 General & Administrative: - - - - Corporate Payroll (3,695,921) - (3,695,921) - (3,695,921) Other G&A Expenses (2,516,173) - (2,516,173) - (2,516,173) -------------- -------------- -------------- -------------- -------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 22,854,123 (7,134,179) 15,719,944 (7,301,449) 8,418,495 -------------- -------------- -------------- -------------- -------------- Interest Expense (10,600,412) 3,444,302 (7,156,110) $ 3,095,320 (4,060,790) Depreciation and Amortization (7,346,599) 1,971,087 (5,375,512) $ 2,077,467 (3,298,045) Equity in income of partnership and JVs 1,718,790 1,718,790 - 1,718,790 Gain(loss) on Sale of Interests in RE 4,085,164 - 4,085,164 - 4,085,164 DISCONTINUED OPERATIONS: - - - - Income from Disposed Real Estate 71,772 - 71,772 2,128,662 2,200,434 Equity in income of partnership and JVs - - - Minority Interest of O.P. Unitholders (637,292) - (637,292) - (637,292) Gain (losses) on Disposition of Discontinued Operations - - - - -------------- -------------- -------------- -------------- -------------- TOTAL DISCONTINUED OPERATIONS (565,520) - (565,520) 2,128,662 1,563,142 -------------- -------------- -------------- -------------- -------------- Extraordinary item(Loss on early extinguishment of debt) - - - - - Minority Interest of OP Unit Holders (248,916) - (248,916) - (248,916) -------------- -------------- -------------- -------------- -------------- NET INCOME 8,177,840 - 8,177,840 - 8,177,840 -------------- -------------- -------------- -------------- -------------- Gain on Sale of Real Estate (4,085,164) - (4,085,164) - (4,085,164) Depreciation and Amor. of Real Estate 7,346,599 - 7,346,599 - 7,346,599 FFO Adjustments 857,692 - 857,692 - 857,692 -------------- -------------- -------------- -------------- -------------- FFO 12,296,967 - 12,296,967 - 12,296,967 -------------- -------------- -------------- -------------- -------------- Adj. Straight Lining of Base Rents (264,272) - (264,272) - (264,272) Recurring Capital Expenditures (729,390) - (729,390) - (729,390) Amortization of Debt Premium - - - - - -------------- -------------- -------------- -------------- -------------- FAD $ 11,303,305 $ - $ 11,303,305 $ - $ 11,303,305 -------------- -------------- -------------- -------------- -------------- Dividends $ 9,182,493 Share Price (at close) $ 25.76 Weighted Average Number of Shares 16,566,418 WA number of Shares and OP Units 18,305,378 -------------- Net Income/Share $ 0.49 FFO/Share and OP Units $ 0.67 FAD/Share and OP Units $ 0.62 Dividend/Share and OP Units $ 0.51 ==============
BALANCE SHEET
Combined Adjustments to Assets Held Total Equity Method Subtotal for Sale TOTAL --------------- --------------- --------------- ----------- -------------- Investment in Real Estate, at cost $ 1,310,068,606 $ (148,350,893) $ 1,161,717,713 $ - $ 1,161,717,713 Accumulated Depreciation (97,376,388) 36,454,134 (60,922,254) - (60,922,254) Investment in and advances to Partnership and JVs 1,200,000 14,691,677 15,891,677 - 15,891,677 Other Assets 175,110,969 (25,786,601) $ 149,324,368 - 149,324,368 --------------- --------------- --------------- ----------- --------------- Total Assets $ 1,389,003,187 $ (122,991,683) $ 1,266,011,504 $ - $ 1,266,011,504 --------------- --------------- --------------- ----------- --------------- Mortgage Notes $ 739,061,360 $ (118,525,862) $ 620,535,498 $ - $ 620,535,498 Line of Credit - - - - - Acquisition Term Loan & Unsecured Line of Credit - - - - - Other Liabilities 43,344,764 (4,465,821) 38,878,943 - 38,878,943 --------------- --------------- --------------- ----------- --------------- Total Liabilities $ 782,406,124 $ (122,991,683) $ 659,414,441 $ - $ 659,414,441 --------------- --------------- --------------- ----------- --------------- Minority Interest $ 64,261,590 $ -- $ 64,261,590 $ - $ 64,261,590 Total Shareholders Equity 542,335,473 -- 542,335,473 - 542,335,473 --------------- --------------- --------------- ----------- --------------- Total Liabilities and Shareholder Equity $ 1,389,003,187 $ (122,991,683) $ 1,266,011,504 $ - $ 1,266,011,504 =============== =============== =============== =========== =============== Combined Adjustments to Assets Held Total Equity Method Subtotal for Sale TOTAL --------------- --------------- --------------- ----------- -------------- Investment in Real Estate, at cost $ 926,422,095 $ (228,516,708) $ 697,905,387 $ - $ 697,905,387 Accumulated Depreciation (169,488,716) 46,658,613 (122,830,103) - (122,830,103) Investment in and advances to Partnership and JVs 418,851 26,072,820 26,491,671 - 26,491,671 Other Assets 92,397,721 (28,274,265) $ 64,123,456 - 64,123,456 --------------- --------------- --------------- ----------- --------------- Total Assets $ 849,749,951 $ (184,059,540) $ 665,690,411 $ - $ 665,690,411 --------------- --------------- --------------- ----------- --------------- Mortgage Notes $ 478,913,976 $ (176,919,931) $ 301,994,045 $ - $ 301,994,045 Line of Credit 120,500,000 - 120,500,000 - 120,500,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Other Liabilities 31,434,318 (7,139,609) 24,294,709 - 24,294,709 --------------- --------------- --------------- ----------- --------------- Total Liabilities $ 630,848,294 $ (184,059,540) $ 446,788,754 $ - $ 446,788,754 --------------- --------------- --------------- ----------- --------------- Minority Interest $ 31,881,878 $ - $ 31,881,878 $ - $ 31,881,878 Total Shareholders Equity 187,019,779 - 187,019,779 - 187,019,779 --------------- --------------- --------------- ----------- --------------- Total Liabilities and Shareholder Equity $ 849,749,951 $ (184,059,540) $ 665,690,411 $ - $ 665,690,411 =============== =============== =============== =========== ===============
35 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003) [LOGO OF PREIT] [LOGO OF PEI LISTED NYSE] Definitions Fund From Operations (FFO) NAREIT defines FFO as income before gains (losses) on property sales and extraordinary items (computed in accordance with GAAP); plus real estate depreciation and similar adjustments for unconsolidated joint ventures after adjustments for non-real estate depreciation and amortization of financing costs. The Company computes FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than the Company. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company's financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity, nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions. The Company believes that net income is the most directly comparable GAAP measurement to FFO. The Company believes that net income is the most directly comparable GAAP measurement to FFO. The Company believes that FFO is helpful to investors as a measure of operating performance because it excludes various items included in net income that do not relate to or are not indicative of operating performance, such as various non-recurring items, gains on sales of real estate and depreciation and amortization of real estate. Net Operating Income (NOI) NOI is derived from real estate revenues (determined in accordance with GAAP) minus property operating expenses (determined in accordance with GAAP). NOI does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company's financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity; nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions. The Company believes that net income is the most directly comparable GAAP measurement to NOI. The Company believes that NOI is helpful to investors as a measure of operating performance because it is an indicator of the return on investment on the properties, and provides a comparison measurement of the properties over time. NOI excludes general and administrative expenses, management company revenues, interest income, interest expense, depreciation and amortization, income from discontinued operations and gains on sales of interest in real estate. Funds Available for Distribution (FAD) FAD also referred to as Cash Available for Distributions (CAD) and adjusted FFO (AFFO). FAD refers to a computation made by analysts and investors to measure a real estate company's cash flows generated by operations. FAD is calculated by subtracting from FFO (1) normalized recurring capital expenditures that are capitalized but necessary to maintain a REIT's properties and (2) straight-line rents. The Company believes that net income is the most directly comparable GAAP measurement to FAD. The Company believes FAD provides a meaningful indicator of its ability to fund cash needs and to make cash distributions to equity owners. In addition, the Company feels to further understand its liquidity, FAD should be compared with its cash flow from operating activities determined in accordance with GAAP, as presented in its consolidated financial statements. The computation of FAD may not be comparable to FAD reported by other REITs or real estate companies and FAD does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, or as an alternative to net cash flow from operating activities (determined in accordance with GAAP), as a measure of our liquidity. Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) Earnings before interest, taxes, depreciation and amortization. On a property level, EBITDA and NOI are equivalent; however, certain corporate revenues and expenses are added and deducted to/from NOI to derive EBITDA on a company wide basis. Specifically, management company revenues and interest income are added to NOI while corporate payroll and other General and Administrative expenses are deducted from NOI to calculate EBITDA. The Company believes that net income is the most directly comparable GAAP measurement to EBITDA. The Company believes that EBITDA helps the Company and its investors evaluate the ongoing operating performance of its properties and facilitate comparisons with other REITs and real estate companies. These measures assist management by providing a baseline to assess property-level results, particularly as the Company acquires or sells assets. The EBITDA measures presented by the Company may not be comparable to other similarly titled measures of other companies. 36 -----END PRIVACY-ENHANCED MESSAGE-----