EX-99 3 ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 [GRAPHIC OMITTED] Pennsylvania Real Estate Investment Trust QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) www.preit.com [GRAPHIC OMITTED] Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED]
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 -Quarterly Comparison 7 Income Statement-Wholly Owned and JV Detail-Yearly Comparison 8 Income Statement-Line of Business - Quarterly Comparison 9 Income Statement-Line of Business - Yearly Comparison 10 Income Statement-Retail (Property Status) - Quarterly Comparison 11 Income Statement-Retail (Property Status) - Yearly Comparison 12 Income Statement-Retail (Property Subtype) - Quarterly Comparison 13 Income Statement-Retail (Property Subtype) - Yearly Comparison 14 FFO and FAD 15 Key Ratios 16 Property Debt Schedule-Wholly Owned 17 Property Debt Schedule-JV 18 Debt Analysis 19 Debt Ratios 20 Portfolio Summary-Retail 21 Property Acquisitions/Dispositions - Quarterly Summary 22 Property Acquisitions/Dispositions - Yearly Summary 23 Property Development/Redevelopment Summary 24 Top Twenty Tenants Schedule 25 Lease Expiration Schedule - Anchor Tenants 26 Lease Expiration Schedule - Non-Anchor Tenants 27 New Lease/Renewal Summary and Analysis 28 Capital Expenditures 29 Enclosed Mall - Summary and Occupancy 30 Enclosed Mall - Rent Summary 31 Power Center - Summary and Occupancy 32 Strip Center - Summary and Occupancy 33 Retail Overall - Summary and Occupancy 34 Summary of Portfolio Services 35 Flash Report - Quarterly 36 Flash Report - Yearly 37 RECONCILIATION TO GAAP: Balance Sheet-Reconciliation to GAAP 38 Income Statement-Reconciliation to GAAP - Quarterly 39 Income Statement-Reconciliation to GAAP - Yearly 40 Flash Report-Reconciliation to GAAP - Quarterly 41 Flash Report-Reconciliation to GAAP - Yearly 42 Definition page 43
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 (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] COMPANY INFORMATION 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 33.4 million square feet) located in the Mid-Atlantic Region. PREIT's portfolio consists of 58 properties in 14 states. PREIT's portfolio includes 40 shopping malls, 14 strip and power centers and four industrial properties. PREIT is headquartered in Philadelphia, Pennsylvania. Research Coverage
Company Analyst Phone Number ------0 ------------------- -------------- 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 2004 2003 ------- ---- ---- First Quarter 5/5/2004 (1) 5/14/2003 Second Quarter 8/5/2004 (1) 8/11/2003 Third Quarter 11/4/2004 (1) 11/5/2003 Fourth Quarter 2/24/2005 (1) 2/25/2004 (1) Tentative dates.
Quarterly conference calls are arranged by KCSA Worldwide. To participate, please contact Evan Smith at (212) 896-1251. 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 PAGE 1 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] Time Line/Recent Developments February 20, 2004 - Pennsylvania Real Estate Investment Trust announced that its Board of Trustees has declared a quarterly cash dividend of $0.54 per common share. PREIT also announced that its Board of Trustees has declared a regular quarterly dividend of $1.375 per share on its recently issued 11.00% senior preferred shares. February 18, 2004 - Pennsylvania Real Estate Investment Trust announced that it intends to release its financial results for the fourth quarter ended December 31, 2003 on Wednesday, February 25, 2004. February 9, 2004 - Pennsylvania Real Estate Investment Trust announced that the IRS has granted the relief requested by PREIT in order to make a retroactive "taxable REIT subsidiary", or TRS, election necessary to maintain its REIT status. February 6, 2004 - Pennsylvania Real Estate Investment Trust announced, after consultation with Lehman Brothers and Morgan Stanley, that it has chosen to withdraw its previously-announced offering of 4.35 million common shares under its shelf-registration statement at a public offering price of $37.08 per share. On February 5th, the Company determined that it inadvertently did not elect to treat as a "taxable REIT subsidiary" or TRS, a corporation in which it owns more than 10% of the stock. February 5, 2004 - Pennsylvania Real Estate Investment Trust reports tax status of the dividend distribution for 2003. February 4, 2004 - Pennsylvania Real Estate Investment Trust announced that it has agreed to sell 4.35 million common shares under its shelf registration statement at a public offering price of $37.08 per share, the closing price of the common shares on the New York Stock Exchange on February 3, 2004. February 2, 2004 - Pennsylvania Real Estate Investment Trust announced that it intends to begin marketing the offering of 3.0 million common shares under its shelf registration statement previously declared effective by the Securities and Exchange Commission. The net proceeds of the offering are intended to pay down the Company's revolving credit facility and for general corporate purposes, including working capital, capital expenditures, and future acquisitions of properties, if any. February 2, 2004 - Pennsylvania Real Estate Investment Trust reaffirmed its Funds From Operations (FFO) guidance for calendar year 2003 to be $2.84 to $2.96 per share January 21, 2004 - Pennsylvania Real Estate Investment Trust to Create Office of the Chairman. PREIT will create a new five-person Office of the Chairman and make several executive changes upon filing of the Company's financial statements for 2003, scheduled on or before March 15, 2004, and the appointment of a new Chief Financial Officer. December 12, 2003 - Pennsylvania Real Estate Investment Trust announced that the SEC has declared Effective PREIT's $500 million universal shelf registration. The registration was filed on November 14, 2003. November 20, 2003 - Pennsylvania Real Estate Investment Trust announced that it has closed its merger with Crown American Realty Trust, which was originally announced on May 14, 2003. Both companies received shareholder approval for the transaction on November 11, 2003. November 11, 2003 - Pennsylvania Real Estate Investment Trust announced shareholder approval for its merger with Crown American Realty Trust, which was first announced publicly on May 14, 2003. November 7, 2003 - Pennsylvania Real Estate Investment Trust has signed a ground lease with Target for a new, 136,010-sq.-ft. store at Prince Georges Plaza, a single-level enclosed regional mall in Hyattsville, Md., just outside of Washington, DC in suburban Prince Georges County. November 5, 2003 - Pennsylvania Real Estate Investment Trust announced the results for the third quarter and nine months ended September 30, 2003. 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. NOTE: A copy of the press releases are available on the Company's website at www.preit.com. PAGE 2 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] Stock Information PREIT's common stock trades on the New York Stock Exchange (symbol: PEI).
CY:12/31/03 Q4:12/31/03 Q3:9/30/03 Q2:6/30/03 Q1:3/31/03 CY 12/31/02 --------------- --------------- --------------- --------------- --------------- --------------- High Price 36.30 36.30 33.45 30.34 28.80 27.20 Low Price 24.70 32.70 29.80 27.94 24.70 20.55 Close 36.30 36.30 33.45 29.95 28.65 26.00 Average Daily Trading Volume 109,892 283,565 96,738 85,567 37,385 41,495 Common Shares Outstanding at end of period 35,544,265 35,544,265 23,480,595 16,837,304 16,753,614 16,697,119 O.P. Units 3,691,516 3,691,516 2,056,861 2,057,618 1,763,320 1,763,318 --------------- --------------- --------------- --------------- --------------- --------------- Fully Diluted Shares Outstanding 39,235,781 39,235,781 25,537,456 18,894,922 18,516,934 18,460,437 Weighted Avg. number of common shares outstanding 20,389,577 28,786,801 19,488,367 16,615,576 16,544,737 16,162,327 Weighted Avg. effect of full conversion of O.P. units 2,303,449 2,957,595 2,049,112 1,998,708 1,763,320 1,804,779 --------------- --------------- --------------- --------------- --------------- --------------- Wtd Avg. Common Shares Outstanding and O.P. Units 22,693,026 31,744,396 21,537,479 18,614,284 18,308,057 17,967,106 Preferred Shares, Nominal Value $ 123,750,000 $ 123,750,000 Market Value of Shares (based on closing price) $1,548,008,850 $1,548,008,850 $ 854,227,903 $ 565,902,914 $ 530,510,159 $ 479,971,362 --------------- --------------- --------------- --------------- --------------- --------------- Q4:12/31/02 CY 12/31/01 --------------- --------------- High Price 26.45 25.05 Low Price 22.52 18.25 Close 26.00 23.20 Average Daily Trading Volume 32,614 39,463 Common Shares Outstanding at end of period 16,697,119 15,876,084 O.P. Units 1,763,318 1,753,580 --------------- --------------- Fully Diluted Shares Outstanding 18,460,437 17,629,664 Weighted Avg. number of common shares outstanding 16,450,912 14,656,711 Weighted Avg. effect of full conversion of O.P. units 1,758,630 1,869,383 --------------- --------------- Wtd Avg. Common Shares Outstanding and O.P. Units 18,209,542 16,526,094 Preferred Shares, Nominal Value Market Value of Shares (based on closing price) $ 479,971,362 $ 409,008,205 --------------- ---------------
Distribution Information
CY: 12/31/03 Q4:12/31/03 Q3:9/30/03 Q2:6/30/03 Q1:3/31/03 CY 12/31/02 --------------- --------------- --------------- --------------- --------------- --------------- Dividend per share $ 2.070 $ 0.540 $ 0.510 $ 0.510 $ 0.510 $ 2.040 Annualized Dividend Yield (1) 5.7% 6.0% 6.1% 6.8% 7.1% 7.8% Capital Gain Pre-May 6 0.096 0 0 0.096 $ 0.082 Capital Gain Post-May 5 0.213 0 0.055 0.158 0 Section 1250 Gain 0.480 0 0.181 0.235 0.064 $ - Return of Capital/Non- Taxable 0.085 0.022 0.021 0.021 0.021 $ 0.134 Qualified 5 Year Gain (incl. in cap. Gain) N/A N/A N/A N/A N/A $ - Ordinary Income $ 1.196 $ 0.518 $ 0.253 $ - $ 0.425 $ 1.824 Q4:12/31/02 CY 12/31/01 --------------- --------------- Dividend per share $ 0.510 $ 2.040 Annualized Dividend Yield (1) 7.8% 8.8% Capital Gain Pre-May 6 $ 0.082 $ 0.110 Capital Gain Post-May 5 Section 1250 Gain $ - $ 0.129 Return of Capital/Non-Taxable $ - $ - Qualified 5 Year Gain (incl. in cap. Gain) $ - $ - Ordinary Income $ 0.428 $ 1.801
(1) Based on closing stock price for the period. Shareholder Information
Ten Largest Institutional Shareholders: Shares Held (1) 12/31/2003 RREEF Real Estate Securities Advisers, L.P. 3,764,082 ING Clarion Real Estate Securities 1,663,258 Vanguard Group, Inc. 1,229,907 Barclays Global Investors 1,115,380 K.G. Redding & Associates 952,600 Deutsche Asset Mangement Americas 881,980 Urdang Investment Management, Inc. 841,800 State Street Global Advisors 722,180 Manufacturers Advisers Corporation 699,742 Neuberger Berman, LLC 620,600 TOTAL of Ten Largest Institutional: 12,491,529 TOTAL of all Institutional holders: 19,722,067 --------------- Ten Largest as % of Total Institutional: 63.3% ===============
(1) Based on 13F filings as of 12/31/03 or most recent filings. GRAPHIC OMITTED
Breakdown of Share & Unit Ownership: Shares Held % of 12/31/03 12/31/2003 12/31/2002 total Institutional(1) 19,722,067 4,549,573 50.3% Retail(2) 15,293,605 12,171,843 39.0% Insiders(3) 4,220,109 1,739,021 10.8% --------------- --------------- --------------- TOTAL 39,235,781 18,460,437 100.0% =============== =============== ===============
GRAPHIC OMITTED (1) Based on 13F filings as of 12/31/03 or most recent filings. (2) Retail ownership equals total shares outstanding minus institutional and insider ownership. (3) Insider holdings as of 12/31/03. (Shares and O.P. Units only. Excludes 475,310 exercisable options).
Share Ownership by Insiders: Shares Held (including O.P. Units, Interim Net Beneficial Ownership and As of 12/31/ Purchases of As of 9/25/ Exercisable Options) 03(1) % of Total (2) Shares (3) 03(4) % of Total (5) --------------- --------------- --------------- --------------- --------------- Mark Pasquerilla 2,397,073 6.1% N/A N/A Ronald Rubin 838,848 2.1% 7,586 831,262 3.3% George F. Rubin 420,535 1.1% 6,526 414,009 1.6% Leonard I. Korman 312,785 0.8% - 312,785 1.2% Edward A. Glickman 213,230 0.5% 12,794 200,436 0.8% Jonathan B. Weller 152,530 0.4% (26,662) 179,192 0.7% Joseph F. Coradino 111,657 0.3% (21,547) 133,204 0.5% Jeffrey P. Orleans 82,748 0.2% - 82,748 0.3% Jeffrey A. Linn 69,356 0.2% (4,988) 74,344 0.3% Douglas S. Grayson 42,152 0.1% (13,000) 55,152 0.2% David J. Bryant 21,252 0.1% (2,387) 23,639 0.1% Lee H. Javitch 12,125 0.0% (1,000) 13,125 0.1% Bruce Goldman 10,753 0.0% 142 10,611 0.0% Rosemarie B. Greco 7,125 0.0% - 7,125 0.0% Ira Lubert 3,250 0.0% - 3,250 0.0% --------------- --------------- --------------- --------------- --------------- TOTAL 4,695,419 12.0% (42,536) 2,340,882 9.2% =============== =============== =============== =============== ===============
(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 December 31, 2003. (3) Includes purchases of shares, issuance of restricted stocks awards, issuances of O.P. units, and exercisable options. (4) Source of Insider Ownership: S-4 SEC filing dated October 1, 2003. (5) Based on fully diluted shares outstanding as of September 30, 2003. PAGE 3 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] MARKET CAPITALIZATION
December 31, September 30, December 31, 2003 2003 June 30, 2003 March 31, 2003 2002 -------------- -------------- -------------- -------------- -------------- EQUITY CAPITALIZATION Shares Outstanding 35,544,265 23,480,595 16,837,304 16,753,614 16,697,119 O.P. Units Outstanding 3,691,516 2,056,861 2,057,618 1,763,320 1,763,318 -------------- -------------- -------------- -------------- -------------- TOTAL Shares and O.P. Units 39,235,781 25,537,456 18,894,922 18,516,934 18,460,437 Market Price (at end of period) $ 36.30 $ 33.45 $ 29.95 $ 28.65 $ 26.00 Preferred Shares, Nominal Value $ 123,750,000 Equity Market Capitalization $ 1,548,008,850 $ 854,227,903 $ 565,902,914 $ 530,510,159 $ 479,971,362 DEBT CAPITALIZATION Unsecured Debt Balance $ 170,000,000 $ 20,249,935 $ -- $ -- Secured Debt Balance 1,396,262,538 739,061,360 816,864,718 625,117,601 617,279,770 -------------- -------------- -------------- -------------- -------------- Debt Capitalization $ 1,566,262,538 $ 739,061,360 $ 837,114,653 $ 625,117,601 $ 617,279,770 -------------- -------------- -------------- -------------- -------------- TOTAL MARKET CAPITALIZATION $ 3,114,271,388 $ 1,593,289,263 $1,403,017,567 $ 1,155,627,760 $ 1,097,251,132 ============== ============== ============== ============== ============== Preferred Shares/Total Market Capitalization 4.0% Shares and O.P. Units/Total Market capitalization 45.7% Debt Capitalization/Total Market Capitalization 50.3% 46.4% 59.7% 54.1% 56.3% Equity Capitalization/Total Market Capitalization 49.7% 53.6% 40.3% 45.9% 43.7% Unsecured Debt Balance/Total Debt 10.9% 0.0% 2.4% 0.0% 0.0% December 31, 2001 -------------- EQUITY CAPITALIZATION Shares Outstanding 15,876,084 O.P. Units Outstanding 1,753,580 -------------- TOTAL Shares and O.P. Units 17,629,664 Market Price (at end of period) $ 23.20 Preferred Shares, Nominal Value Equity Market Capitalization $ 409,008,205 DEBT CAPITALIZATION Unsecured Debt Balance $ -- Secured Debt Balance 506,175,818 -------------- Debt Capitalization $ 506,175,818 -------------- TOTAL MARKET CAPITALIZATION $ 915,184,023 ============== Preferred Shares/Total Market Capitalization Shares and O.P. Units/Total Market capitalization Debt Capitalization/Total Market Capitalization 55.3% Equity Capitalization/Total Market Capitalization 44.7% Unsecured Debt Balance/Total Debt 0.0%
[GRAPHIC OMITTED] CAPITAL RESOURCES
December 31, September 30, December 31, 2003 2003 June 30, 2003 March 31, 2003 2002 -------------- -------------- -------------- -------------- -------------- Cash on Hand $ 52,534,598 $ 43,512,963 $ 15,035,033 $ 14,015,658 $ 18,628,137 Line of Credit Capacity (1) $ 500,000,000 $ 200,000,000 $ 200,000,000 $ 200,000,000 $ 200,000,000 Amount Used (includes letters of credit) (170,500,000) (673,671) (118,573,671) (147,573,671) (131,473,671) -------------- -------------- -------------- -------------- -------------- Available LOC (2) $ 329,500,000 $ 199,326,329 $ 81,426,329 $ 52,426,329 $ 68,526,329 Shelf Registration $ 1,000,000,000 $ 500,000,000 $ 500,000,000 $ 500,000,000 $ 500,000,000 Amount Used (344,146,042) (344,146,042) (155,977,292) (155,977,292) (155,977,292) -------------- -------------- -------------- -------------- -------------- Available Shelf $ 655,853,958 $ 155,853,958 $ 344,022,708 $ 344,022,708 $ 344,022,708 -------------- -------------- -------------- -------------- -------------- TOTAL CAPITAL RESOURCES $ 1,037,888,556 $ 398,693,250 $ 440,484,070 $ 410,464,695 $ 431,177,174 ============== ============== ============== ============== ============== December 31, 2001 -------------- Cash on Hand $ 16,242,450 Line of Credit Capacity (1) $ 175,000,000 Amount Used (includes letters of credit) (100,168,659) -------------- Available LOC (2) $ 74,831,341 Shelf Registration $ 200,000,000 Amount Used (148,925,000) -------------- Available Shelf $ 51,075,000 -------------- TOTAL CAPITAL RESOURCES $ 142,148,791 ==============
(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. PAGE 4 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) BALANCE SHEET (Wholly Owned vs. JVs)
December 31, 2003 ----------------------------------------------------------------------------------- PREIT PREIT's % Corporate Combined Wholly Owned of JVs (5) TOTAL ------------------ ------------------ ------------------ ------------------ ASSETS Investments in Real Estate, at cost Retail Properties $ 2,382,753,911 $ 133,107,107 - $ 2,515,861,018 Multifamily Properties - - - - Industrial Properties 2,504,211 - - 2,504,211 Construction In Progress 20,230,813 1,506,178 - 21,736,991 ------------------ ------------------ ------------------ ------------------ TOTAL INVESTMENTS IN REAL ESTATE 2,405,488,935 134,613,285 - 2,540,102,220 Accumulated Depreciation (78,416,266) (31,652,085) - (110,068,351) ------------------ ------------------ ------------------ ------------------ Net Real Estate 2,327,072,669 102,961,200 - 2,430,033,869 ------------------ ------------------ ------------------ ------------------ Advances to Partnerships and Joint Ventures - - - ------------------ ------------------ ------------------ ------------------ 2,327,072,669 102,961,200 - 2,430,033,869 ------------------ ------------------ ------------------ ------------------ Allowance for Possible Losses - ------------------ ------------------ ------------------ ------------------ 2,327,072,669 102,961,200 - 2,430,033,869 ------------------ ------------------ ------------------ ------------------ Other Assets: Cash and Cash Equivalents 13,580,334 3,905,956 35,048,308 52,534,598 Rents and Other Receivables 22,860,444 7,991,132 4,814,392 35,665,968 Assets held for sale 37,686,662 - 37,686,662 Acquired Lease Assets - Intangible Assets(1) 172,502,487 9,041,888 181,544,375 Deferred Costs, Prepaid Taxes & Exp. & Other Assets(2) 41,095,944 11,942,821 8,668,393 61,707,158 ------------------ ------------------ ------------------ ------------------ TOTAL OTHER ASSETS 287,725,871 23,839,909 57,572,981 369,138,761 ------------------ ------------------ ------------------ ------------------ TOTAL ASSETS 2,614,798,540 126,801,109 57,572,981 2,799,172,630 ------------------ ------------------ ------------------ ------------------ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 1,211,192,636 109,581,659 - 1,320,774,295 Mortgage Debt Premium(3) 75,488,243 - 75,488,243 Bank Loans Payable - - 170,000,000 170,000,000 Acquisition Term Loan & Unsecured Line of Credit - - - - Construction Loans Liabilities Related to Assets held for sale 5,840,385 - 5,840,385 Other Liabilities(4) 46,107,438 4,110,496 40,566,634 90,784,568 ------------------ ------------------ ------------------ ------------------ TOTAL LIABILITIES 1,338,628,702 113,692,155 210,566,634 1,662,887,491 ------------------ ------------------ ------------------ ------------------ Minority Interest 8,590,978 - 104,060,548 112,651,526 ------------------ ------------------ ------------------ ------------------ Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - 35,544,280 35,544,280 Preferred Shares $0.01 Par 24,750 24,750 Capital Contributed in Excess of Par - - 877,444,615 877,444,615 Restricted Stock - - (3,195,777) (3,195,777) Other Comprehensive Income - - (2,005,840) (2,005,840) Retained Earnings (Distributions in Excess of Net Income) - - 115,821,585 115,821,585 ------------------ ------------------ ------------------ ------------------ TOTAL SHAREHOLDERS' EQUITY - - 1,023,633,613 1,023,633,613 ------------------ ------------------ ------------------ ------------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,347,219,680 $ 113,692,155 $ 1,338,260,795 $ 2,799,172,630 ================== ================== ================== ==================
September 30, 2003 ----------------------------------------------------------------------------------- PREIT PREIT's % Corporate Combined Wholly Owned of JVs (5) 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 Assets held for sale - - Acquired Lease Assets Intangible Assets(1) 46,915,709 9,041,888 55,957,597 Deferred Costs, Prepaid Taxes & Exp. & Other Assets(2) 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 Mortgage Debt Premium(3) Bank Loans Payable - - Acquisition Term Loan & Unsecured Line of Credit - - - - Construction Loans Liabilities Related to Assets held for sale 915,292 36,458 - 951,750 Other Liabilities(4) 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 Preferred Shares $0.01 Par 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 (5) 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 Assets held for sale - - - - Acquired Lease Assets Intangible Assets(1) 16,679,886 16,679,886 Deferred Costs, Prepaid Taxes & Exp. & Other Assets(2) 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 ------------------ ------------------ ------------------ ------------------ 48,809,559 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 319,751,324 166,728,446 - 486,479,770 Mortgage Debt Premium(3) Bank Loans Payable 119,229,707 11,570,293 130,800,000 Acquisition Term Loan & Unsecured Line of Credit - - - - Construction Loans - Liabilities Related to Assets held for sale - - - - Other Liabilities(4) 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 Preferred Shares $0.01 Par 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 ================== ================== ================== ==================
(1) Includes value of acquired in-place leases and above-market value of leases recorded in connection with the acquisition of properties in 2002 and 2003. Purchase accounting rules require a purchaser to separately value the leases that are in place at the acquisition date, as well as the above- or below-market values of the leases. (2) Deferred Costs, Prepaid Taxes and Expenses and Other Assets include Rents and Other Receivables for Partnerships and Joint Ventures. (3) Represents premium that is recorded in connection with debt assumed in connection with property purchases. The debt is market to market at the acquisition date and the premium is amortized through interest expense over the remaining term of the debt. (4) For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses and Other Liabilities. (5) 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 38 to 43. PAGE 5 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] BALANCE SHEET(1) (Line of Business)
December 31, 2003 ---------------------------------------------------------------------------------------- Power and Other Malls Strip Centers Total Retail Multifamily Properties -------------- -------------- -------------- -------------- -------------- ASSETS Investments in Real Estate, at cost $ 2,217,101,551 $ 298,759,467 $2,515,861,018 $ - $ 24,241,202 -------------- -------------- -------------- -------------- -------------- Accumulated Depreciation (68,469,015) (39,522,565) (107,991,580) - (2,076,771) -------------- -------------- -------------- -------------- -------------- Net Real Estate 2,148,632,536 259,236,902 2,407,869,438 - 22,164,431 -------------- -------------- -------------- -------------- -------------- Investments in PREIT-RUBIN Advances to Partnerships and Joint Ventures - - - - Advances to PREIT-RUBIN - -------------- -------------- -------------- -------------- -------------- 2,148,632,536 259,236,902 2,407,869,438 - 22,164,431 -------------- -------------- -------------- -------------- -------------- Allowance for Possible Losses - - - -------------- -------------- -------------- -------------- -------------- 2,148,632,536 259,236,902 2,407,869,438 - 22,164,431 -------------- -------------- -------------- -------------- -------------- Other Assets: Cash 13,158,371 4,327,918 17,486,289 Assets held for sale 37,686,662 - 37,686,662 Intangible Assets (2) 172,502,487 - 172,502,487 Other Assets, Net (3) 42,915,526 24,994,311 67,909,837 15,980,505 -------------- -------------- -------------- -------------- -------------- Total Other Assets 266,263,046 29,322,229 295,585,275 - 15,980,505 -------------- -------------- -------------- -------------- -------------- TOTAL ASSETS 2,414,895,582 288,559,131 2,703,454,713 - 38,144,936 ============== ============== ============== ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 1,307,057,501 89,205,037 1,396,262,538 - - - - - Bank Loans Payable - - - Acquisition Term Loan &Unsecured Line of Credit - - - - Construction Loans - - - - - Liabilities Related to Assets held for sale 5,840,385 5,840,385 - - Other Liabilities (4) 40,094,056 6,010,869 46,104,925 - 4,113,008 -------------- -------------- -------------- -------------- -------------- TOTAL LIABILITIES 1,352,991,942 95,215,906 1,448,207,848 - 4,113,008 -------------- -------------- -------------- -------------- -------------- Minority Interest 8,464,264 126,715 8,590,979 - -------------- -------------- -------------- -------------- -------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - - - Preferred Shares $0.01 Par Capital Contributed in Excess of Par - - - - Restricted Stock - - - - Other Comprehensive Income - - - - Retained Earnings (Distributions in Excess of Net Income) - - - - -------------- -------------- -------------- -------------- -------------- TOTAL SHAREHOLDERS' EQUITY - - - - - -------------- -------------- -------------- -------------- -------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,361,456,206 $ 95,342,621 $1,456,798,827 $ - $ 4,113,008 ============== ============== ============== ============== ==============
December 31, 2003 September 30, 2003 --------------------------------- --------------------------------------------------- Combined Other Corporate TOTAL Retail Multifamily Properties -------------- -------------- -------------- -------------- -------------- ASSETS Investments in Real Estate, at cost $ - $ 2,540,102,220 $1,289,890,542 $ - $ 20,178,064 -------------- -------------- -------------- -------------- -------------- Accumulated Depreciation - (110,068,351) (95,312,157) (2,064,231) -------------- -------------- -------------- -------------- -------------- Net Real Estate - 2,430,033,869 1,194,578,385 - 18,113,833 -------------- -------------- -------------- -------------- -------------- Investments in PREIT-RUBIN Advances to Partnerships and Joint Ventures - - - - - Advances to PREIT-RUBIN -------------- -------------- -------------- -------------- -------------- - 2,430,033,869 1,194,578,385 - 18,113,833 -------------- -------------- -------------- -------------- -------------- Allowance for Possible Losses - - - - - -------------- -------------- -------------- -------------- -------------- - 2,430,033,869 1,194,578,385 - 18,113,833 -------------- -------------- -------------- -------------- -------------- Other Assets: Cash 35,048,308 52,534,597 14,448,465 707,773 Assets held for sale - 37,686,662 - Intangible Assets (2) 9,041,888 181,544,375 46,915,709 Other Assets, Net (3) 13,482,785 97,373,127 53,567,903 469,242 10,392,821 -------------- -------------- -------------- -------------- -------------- Total Other Assets 57,572,981 369,138,761 114,932,077 1,177,015 10,392,821 -------------- -------------- -------------- -------------- -------------- TOTAL ASSETS 57,572,981 2,799,172,630 1,309,510,462 1,177,015 28,506,654 ============== ============== ============== ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable - 1,396,262,538 739,061,360 - - - Bank Loans Payable 170,000,000 170,000,000 Acquisition Term Loan &Unsecured Line of Credit - - - - - Construction Loans - - - - - Liabilities Related to Assets held for sale - 5,840,385 - 951,750 - Other Liabilities (4) 40,566,634 90,784,567 27,237,935 2,696,156 -------------- -------------- -------------- -------------- -------------- TOTAL LIABILITIES 210,566,634 1,662,887,490 766,299,295 951,750 2,696,156 -------------- -------------- -------------- -------------- -------------- Minority Interest 104,060,548 112,651,527 5,991,467 - -------------- -------------- -------------- -------------- -------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par 35,544,280 35,544,280 - - - Preferred Shares $0.01 Par 24,750 24,750 Capital Contributed in Excess of Par 877,444,615 877,444,615 - - - Restricted Stock (3,195,777) (3,195,777) - - - Other Comprehensive Income (2,005,840) (2,005,840) - - - Retained Earnings (Distributions in Excess of Net Income) 115,821,585 115,821,585 - - - -------------- -------------- -------------- -------------- -------------- TOTAL SHAREHOLDERS' EQUITY 1,023,633,613 1,023,633,613 - - - -------------- -------------- -------------- -------------- -------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,338,260,795 $ 2,799,172,630 $ 772,290,762 $ 951,750 $ 2,696,156 ============== ============== ============== ============== ==============
September 30, 2003 December 31, 2002 --------------------------------- --------------------------------------------------- Combined Other Corporate TOTAL Retail Multifamily Properties -------------- -------------- -------------- -------------- -------------- ASSETS Investments in Real Estate, at cost $ - $ 1,310,068,606 $ 620,345,902 $ 305,335,579 $ 27,330,184 -------------- -------------- -------------- -------------- -------------- Accumulated Depreciation - (97,376,388) (79,121,149) (99,346,274) (2,025,613) -------------- -------------- -------------- -------------- -------------- Net Real Estate - 1,212,692,218 541,224,753 205,989,305 25,304,571 -------------- -------------- -------------- -------------- -------------- Investments in PREIT-RUBIN Advances to Partnerships and Joint Ventures 1,200,000 1,200,000 - - - Advances to PREIT-RUBIN -------------- -------------- -------------- -------------- -------------- 1,200,000 1,213,892,218 541,224,753 205,989,305 25,304,571 -------------- -------------- -------------- -------------- -------------- Allowance for Possible Losses - - - - - -------------- -------------- -------------- -------------- -------------- 1,200,000 1,213,892,218 541,224,753 205,989,305 25,304,571 -------------- -------------- -------------- -------------- -------------- Other Assets: Cash 28,356,725 43,512,963 8,812,330 3,629,864 (24,316) Assets held for sale - Intangible Assets (2) 9,041,888 55,957,597 Other Assets, Net (3) 11,210,443 75,640,409 42,129,659 9,098,594 29,449 -------------- -------------- -------------- -------------- -------------- Total Other Assets 48,609,056 175,110,969 50,941,989 12,728,458 5,133 -------------- -------------- -------------- -------------- -------------- TOTAL ASSETS 49,809,056 1,389,003,187 592,166,742 218,717,763 25,309,704 ============== ============== ============== ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable - 739,061,360 280,092,311 206,387,459 - Bank Loans Payable - - 94,712,082 2,500,000 33,587,919 Acquisition Term Loan &Unsecured Line of Credit - - - - - Construction Loans - - - - - Liabilities Related to Assets held for sale - 951,750 - - - Other Liabilities (4) 12,458,923 42,393,014 14,288,005 5,270,638 5,145,887 -------------- -------------- -------------- -------------- -------------- TOTAL LIABILITIES 12,458,923 782,406,124 389,092,398 214,158,097 38,733,806 -------------- -------------- -------------- -------------- -------------- Minority Interest 58,270,123 64,261,590 126,715 - -------------- -------------- -------------- -------------- -------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par 23,480,595 23,480,595 - - - Preferred Shares $0.01 Par 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 $ 613,064,519 $ 1,389,003,187 $ 389,219,113 $ 214,158,097 $ 38,733,806 ============== ============== ============== ============== ==============
December 31, 2002 --------------------------------- Combined Corporate TOTAL -------------- -------------- ASSETS Investments in Real Estate, at cost $ - $ 953,011,665 -------------- -------------- Accumulated Depreciation - (180,493,036) -------------- -------------- Net Real Estate - 772,518,629 -------------- -------------- Investments in PREIT-RUBIN Advances to Partnerships and Joint Ventures 105,309 105,309 Advances to PREIT-RUBIN -------------- -------------- 105,309 772,623,938 -------------- -------------- Allowance for Possible Losses - - -------------- -------------- 105,309 772,623,938 -------------- -------------- Other Assets: Cash 6,210,259 18,628,137 Assets held for sale - Intangible Assets (2) 16,679,886 16,679,886 Other Assets, Net (3) 18,218,843 69,476,545 -------------- -------------- Total Other Assets 41,108,988 104,784,568 -------------- -------------- TOTAL ASSETS 41,214,297 877,408,506 ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable - 486,479,770 Bank Loans Payable - 130,800,000 Acquisition Term Loan &Unsecured Line of Credit - - Construction Loans - - Liabilities Related to Assets held for sale - - Other Liabilities (4) 14,939,232 39,643,762 -------------- -------------- TOTAL LIABILITIES 14,939,232 656,923,532 -------------- -------------- Minority Interest 32,345,722 32,472,437 -------------- -------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par 16,697,117 16,697,117 Preferred Shares $0.01 Par 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 $ 235,297,491 $ 877,408,506 ============== ==============
(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) Represents premium that is recorded in connection with debt assumed in connection with property purchases. The debt is market to market at the acquisition date and the premium is amortized through interest expense over the remaining term of the debt. (2) Deferred Costs, Prepaid Taxes and Expenses and Other Assets include Rents and Other Receivables for Partnerships and Joint Ventures. (4) 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 38 to 43. PAGE 6 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] INCOME STATEMENT(1)(2) QUARTERLY COMPARISON (Wholly Owned vs. JV)
Q4 03 (3 months ended 12/31/03) ---------------------------------------------------------------------------------------- Wholly Owned JVs Corporate --------------------------------- --------------------------------- -------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ 50,838,550 $ 5,419,424 $ - Straight-Lining of Base Rents 1,058,632 (3,327) - Percentage Rents 3,474,981 15,832 - Lease Termination 744,306 - - Expense Recoveries & Other Income 26,370,619 2,222,547 - ---------------------------------------------------------------------------------------- TOTAL REVENUES 82,487,088 92% 7,654,476 8% $ - ---------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 22,382,595 1,941,169 - Real Estate Taxes 7,026,507 669,198 - Minority Interest in Properties 383,601 - ---------------------------------------------------------------------------------------- TOTAL EXPENSES 29,792,703 92% 2,610,367 8% - ---------------------------------------------------------------------------------------- NET OPERATING INCOME 52,694,385 91% 5,044,109 9% - ---------------------------------------------------------------------------------------- OTHER INCOME (EXPENSES) Management Company Revenue - - 4,048,766 Interest Income - - 335,524 General & Administrative: Corporate Payroll(3) - - (9,538,925) Other G&A Expenses(3) - - (8,461,798) Earnings before interest expenses, taxes, depreciation and amortization 52,694,385 119% 5,044,109 11% (13,616,433) Interest Expense(4)(5) (13,107,191) (2,190,986) (1,033,909) Depreciation & Amortization (17,917,055) (1,243,672) - ---------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (31,024,246) (3,434,658) (1,033,909) ---------------------------------------------------------------------------------------- Gains (losses) on sales of interests in Real Estate 4,457,176 - Income before Minority Interest 21,670,139 6,066,627 (14,650,342) Minority Interest of O.P. Unitholders - - (1,198,594) Income from Operations 21,670,139 6,066,627 (15,848,936) Discontinued Operations: Income from Disposed Real Estate - Minority Interest of O.P. Unitholders (580,392) Gain (losses) on Disposition of Discontinued Operations 194,441 ---------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS 194,441 - (580,392) ---------------------------------------------------------------------------------------- Extraordinary item(Loss on early extinguishment of debt) - ---------------------------------------------------------------------------------------- NET INCOME $ 21,864,580 190% $ 6,066,627 53% $ (16,429,328) ========================================================================================
Q4 03 (3 months ended 12/31/03) Q4 02 (3 months ended 12/31/02) -------------------------------- -------------------------------------------------- Combined TOTAL % Corporate TOTAL CHANGE Wholly Owned -------------- -------------- -------------- --------------------------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) 56,257,974 67.5% $ 25,594,333 Straight-Lining of Base Rents 1,055,305 254.3% 244,804 Percentage Rents 3,490,813 175.1% 1,025,322 Lease Termination 744,306 N/A (37,538) Expense Recoveries & Other Income 28,593,166 251.8% 5,095,910 ---------------------------------------------------------------------------------------- TOTAL REVENUES 0% 90,141,564 108.3% 31,922,831 74% ---------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 24,323,764 116.3% 8,014,338 Real Estate Taxes 7,695,705 123.6% 2,553,492 Minority Interest in Properties 383,601 N/A ---------------------------------------------------------------------------------------- TOTAL EXPENSES 0% 32,403,070 120.6% 10,567,830 72% ---------------------------------------------------------------------------------------- NET OPERATING INCOME 0% 57,738,494 101.9% 21,355,001 75% ---------------------------------------------------------------------------------------- OTHER INCOME (EXPENSES) Management Company Revenue 4,048,766 -4.4% - Interest Income 335,524 74.8% - General & Administrative: Corporate Payroll(3) (9,538,925) 180.9% - Other G&A Expenses(3) (8,461,798) 180.9% - Earnings before interest expenses, taxes, depreciation and amortization -31% 44,122,061 65.8% 21,355,001 80% Interest Expense(4)(5) (16,332,086) 48.8% (7,372,176) Depreciation & Amortization (19,160,727) 155.4% (5,872,491) ---------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (35,492,813) 92.1% (13,244,667) ---------------------------------------------------------------------------------------- Gains (losses) on sales of interests in Real Estate 4,457,176 N/A Income before Minority Interest 13,086,424 60.9% 8,110,334 Minority Interest of O.P. Unitholders (1,198,594) 51.9% - Income from Operations 11,887,830 61.9% 8,110,334 Discontinued Operations: Income from Disposed Real Estate - N/A (17,217) Minority Interest of O.P. Unitholders (580,392) N/A Gain (losses) on Disposition of Discontinued Operations 194,441 N/A ---------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS (385,951) N/A (17,217) ---------------------------------------------------------------------------------------- Extraordinary item(Loss on early extinguishment of debt) - N/A ---------------------------------------------------------------------------------------- NET INCOME -143% $ 11,501,879 56.9% $ 8,093,117 110% ========================================================================================
Q4 02 (3 months ended 12/31/02) ---------------------------------------------------------------------------------------- Combined JVs Corporate TOTAL --------------------------------- --------------------------------- -------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ 7,994,055 $ - $ 33,588,388 Straight-Lining of Base Rents 53,050 - 297,854 Percentage Rents 243,602 - 1,268,924 Lease Termination 36,000 - (1,538) Expense Recoveries & Other Income 3,032,121 - 8,128,031 ---------------------------------------------------------------------------------------- TOTAL REVENUES 11,358,828 26% $ - 0% 43,281,659 ---------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 3,232,048 - 11,246,386 Real Estate Taxes 887,884 - 3,441,376 Minority Interest in Properties ---------------------------------------------------------------------------------------- TOTAL EXPENSES 4,119,932 28% - 0% 14,687,762 ---------------------------------------------------------------------------------------- NET OPERATING INCOME 7,238,896 25% - 0% 28,593,897 ---------------------------------------------------------------------------------------- OTHER INCOME (EXPENSES) Management Company Revenue - 4,233,533 4,233,533 Interest Income - 191,895 191,895 General & Administrative: Corporate Payroll(3) - (3,395,954) (3,395,954) Other G&A Expenses(3) - (3,012,605) (3,012,605) Earnings before interest expenses, taxes, depreciation and amortization 7,238,896 27% (1,983,131) -7% 26,610,766 Interest Expense(4)(5) (3,604,559) - (10,976,735) Depreciation & Amortization (1,630,536) (7,503,027) ---------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (5,235,095) - (18,479,762) ---------------------------------------------------------------------------------------- Gains (losses) on sales of interests in Real Estate - - Income before Minority Interest 2,003,801 (1,983,131) 8,131,004 Minority Interest of O.P. Unitholders - (789,137) (789,137) Income from Operations 2,003,801 (2,772,268) 7,341,867 Discontinued Operations: Income from Disposed Real Estate - - (17,217) Minority Interest of O.P. Unitholders 6,605 6,605 Gain (losses) on Disposition of Discontinued Operations - ---------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS 6,605 (10,612) ---------------------------------------------------------------------------------------- Extraordinary item(Loss on early extinguishment of debt) - - - ---------------------------------------------------------------------------------------- NET INCOME $ 2,003,801 27% $ (2,765,663) -38% $ 7,331,255 ========================================================================================
(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) Includes approximately $5,900,000 in expenses associated with the merger with Crown American Realty Trust. (4) Capitalized interest expense for the line of credit and construction loans of $338,458 not included in the quarter ended 12/31/03 and $400,079 not included in the quarter ended 12/31/02. (5) Interest expenses from bank loans are classified as corporate in 2003. NOTE: Reconciliation to GAAP is on pages 38 to 43. PAGE 7 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] INCOME STATEMENT (1)(2) YEARLY COMPARISON
(Wholly Owned vs. JV) CY 2003 (12 months ended 12/31/03) ---------------------------------------------------------------------------------------- Wholly Owned JVs Corporate ----------------------------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ 135,727,675 $ 26,669,101 $ - Straight-Lining of Base Rents 2,633,353 172,194 - Percentage Rents 4,422,624 342,437 - Lease Termination 1,155,954 10,995 - Expense Recoveries & Other Income 55,467,932 10,135,508 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL REVENUES 199,407,538 84% 37,330,235 16% $ - ----------------------------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 55,435,567 10,472,504 - Real Estate Taxes 18,245,203 3,174,423 - Minority Interest in Properties 901,518 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 74,582,288 85% 13,646,927 15% - ----------------------------------------------------------------------------------------------------------------------------- NET OPERATING INCOME 124,825,250 84% 23,683,308 16% - ----------------------------------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSES) Management Company Revenue - - 11,994,203 Interest Income - - 887,180 General & Administrative: Corporate Payroll (3) - - (20,830,685) Other G&A Expenses (3) - - (19,336,946) ----------------------------------------------------------------------------------------------------------------------------- Earnings before interest expenses, taxes, depreciation and amortization 124,825,250 103% 23,683,308 20% (27,286,248) ----------------------------------------------------------------------------------------------------------------------------- Interest Expense (4)(5) (33,511,864) (11,381,104) (7,466,709) Depreciation & Amortization (39,924,614) (5,071,443) - ----------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (73,436,478) (16,452,547) (7,466,709) ----------------------------------------------------------------------------------------------------------------------------- Gains (losses) on sales of interests in Real Estate 1,111,692 15,087,618 - ----------------------------------------------------------------------------------------------------------------------------- Income before Minority Interest 52,500,464 22,318,379 (34,752,957) ----------------------------------------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders - - (3,298,010) ----------------------------------------------------------------------------------------------------------------------------- Income from Operations 52,500,464 22,318,379 (38,050,967) ----------------------------------------------------------------------------------------------------------------------------- Discontinued Operations: Income from Disposed Real Estate - Minority Interest of O.P. Unitholders (18,848,730) Gain (losses) on Disposition of Discontinued Operations 178,121,005 ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS 178,121,005 - (18,848,730) ----------------------------------------------------------------------------------------------------------------------------- Extraordinary item(Loss on early extinguishment of debt) - ----------------------------------------------------------------------------------------------------------------------------- NET INCOME $ 230,621,469 118% $ 22,318,379 11% $(56,899,697) -----------------------------------------------------------------------------------------------------------------------------
(Wholly Owned vs. JV) CY 2003 CY 2002 (12 months ended 12/31/03) (12 months ended 12/31/02) --------------------------------- --------------------------------- Combined TOTAL % Corporate TOTAL CHANGE Wholly Owned ----------------------------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) 162,396,776 29.4% $ 93,833,930 Straight-Lining of Base Rents 2,805,547 169.3% 802,346 Percentage Rents 4,765,061 89.1% 1,947,781 Lease Termination 1,166,949 3.1% 1,034,247 Expense Recoveries & Other Income 65,603,440 133.7% 16,980,821 ----------------------------------------------------------------------------------------------------------------------------- TOTAL REVENUES 0% 236,737,773 49.5% 114,599,125 72% ----------------------------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 65,908,071 64.7% 28,493,148 Real Estate Taxes 21,419,626 69.5% 9,054,447 Minority Interest in Properties 901,518 N/A ----------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 0% 88,229,215 67.5% 37,547,595 71% ----------------------------------------------------------------------------------------------------------------------------- NET OPERATING INCOME 0% 148,508,558 40.6% 77,051,530 73% ----------------------------------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSES) Management Company Revenue 11,994,203 9.0% - Interest Income 887,180 24.8% - General & Administrative: Corporate Payroll (3) (20,830,685) 47.3% - Other G&A Expenses (3) (19,336,946) 82.3% - ----------------------------------------------------------------------------------------------------------------------------- Earnings before interest expenses, taxes, depreciation and amortization -23% 121,222,310 30.9% 77,051,530 83% ----------------------------------------------------------------------------------------------------------------------------- Interest Expense (4)(5) (52,359,677) 25.6% (27,204,903) Depreciation & Amortization (44,996,057) 55.9% (21,411,233) ----------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (97,355,734) 38.0% (48,616,136) ----------------------------------------------------------------------------------------------------------------------------- Gains (losses) on sales of interests in Real Estate 16,199,310 N/A ----------------------------------------------------------------------------------------------------------------------------- Income before Minority Interest 40,065,886 81.7% 28,435,394 ----------------------------------------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders (3,298,010) 161.2% - ----------------------------------------------------------------------------------------------------------------------------- Income from Operations 36,767,876 76.8% 28,435,394 ----------------------------------------------------------------------------------------------------------------------------- Discontinued Operations: Income from Disposed Real Estate - N/A 151,875 Minority Interest of O.P. Unitholders (18,848,730) N/A Gain (losses) on Disposition of Discontinued Operations 178,121,005 N/A 4,085,164 ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS 159,272,275 N/A 4,237,039 ----------------------------------------------------------------------------------------------------------------------------- Extraordinary item(Loss on early extinguishment of debt) - N/A ----------------------------------------------------------------------------------------------------------------------------- NET INCOME -29% $ 196,040,151 727.9% $ 32,672,433 138% -----------------------------------------------------------------------------------------------------------------------------
(Wholly Owned vs. JV) CY 2002 (12 months ended 12/31/02) ---------------------------------------------------------------------------------------- Combined JVs Corporate TOTAL ----------------------------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ 31,701,490 $ - $ 125,535,420 Straight-Lining of Base Rents 239,348 - 1,041,694 Percentage Rents 571,784 - 2,519,565 Lease Termination 97,132 - 1,131,379 Expense Recoveries & Other Income 11,095,567 - 28,076,388 ----------------------------------------------------------------------------------------------------------------------------- TOTAL REVENUES 43,705,321 28% $ - 0% 158,304,446 ----------------------------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 11,529,888 - 40,023,036 Real Estate Taxes 3,583,017 - 12,637,464 Minority Interest in Properties ----------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 15,112,905 29% - 0% 52,660,500 ----------------------------------------------------------------------------------------------------------------------------- NET OPERATING INCOME 28,592,416 27% - 0% 105,643,946 ----------------------------------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSES) Management Company Revenue - 11,002,570 11,002,570 Interest Income - 710,687 710,687 General & Administrative: Corporate Payroll (3) - (14,137,939) (14,137,939) Other G&A Expenses (3) - (10,608,902) (10,608,902) ----------------------------------------------------------------------------------------------------------------------------- Earnings before interest expenses, taxes, depreciation and amortization 28,592,416 31% (13,033,584) -14% 92,610,362 ----------------------------------------------------------------------------------------------------------------------------- Interest Expense (4)(5) (14,595,957) 103,931 (41,696,929) Depreciation & Amortization (7,446,295) (28,857,528) ----------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (22,042,252) 103,931 (70,554,457) ----------------------------------------------------------------------------------------------------------------------------- Gains (losses) on sales of interests in Real Estate - - - ----------------------------------------------------------------------------------------------------------------------------- Income before Minority Interest 6,550,164 (12,929,653) 22,055,905 ----------------------------------------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders - (1,262,556) (1,262,556) ----------------------------------------------------------------------------------------------------------------------------- Income from Operations 6,550,164 (14,192,209) 20,793,349 ----------------------------------------------------------------------------------------------------------------------------- Discontinued Operations: Income from Disposed Real Estate - - 151,875 Minority Interest of O.P. Unitholders (1,352,412) (1,352,412) Gain (losses) on Disposition of Discontinued Operations 4,085,164 ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS (1,352,412) 2,884,627 ----------------------------------------------------------------------------------------------------------------------------- Extraordinary item(Loss on early extinguishment of debt) - - - ----------------------------------------------------------------------------------------------------------------------------- NET INCOME $ 6,550,164 28% $(15,544,621) -66% $ 23,677,976 -----------------------------------------------------------------------------------------------------------------------------
(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) Includes approximately $6,400,000 in expenses associated with the acquisition of the six shopping malls from the Rouse Company and the merger with Crown American Realty Trust. (4) Capitalized interest expense for the line of credit and construction loans of $1,407,832 not included in the year ended 12/31/03 and $1,722,485 not included in the year ended 12/31/02. (5) Interest expenses from bank loans are classified as corporate in 2003. NOTE: Reconciliation to GAAP is on pages 38 to 43. PAGE 8 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] INCOME STATEMENT (1) (2) QUARTERLY COMPARISON (Line of Business)
Q4 03 (3 months ended 12/31/03) ---------------------------------------------------------------------------------------- OTHER RETAIL MULTIFAMILY PROPERTIES --------------------------------- --------------------------------- -------------- REAL ESTATE OPERATING REVENUES Base Rents $ 56,172,818 $ - $ 85,156 Less Vacancies and Concessions - - Straight-Lining of Base Rents 1,055,305 - - Percentage Rents 3,490,813 - - Lease Termination 744,306 - - Expense Recoveries and Other Income 28,591,304 2,248 (386) ----------------------------------------------------------------------------------------------------------------------------- TOTAL REVENUES 90,054,546 100% 2,248 0% 84,770 ----------------------------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 24,306,380 14,494 2,890 Real Estate Taxes 7,695,695 10 - Minority Interest in Properties 383,601 - - ----------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 32,385,676 100% 14,504 0% 2,890 ----------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------- NET OPERATING INCOME 57,668,870 100% (12,256) 0% 81,880 ----------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) Management Company Revenue - - - Interest Income - - - General and Administrative: Corporate Payroll (3) - - - Other General & Administrative (3) - - - ----------------------------------------------------------------------------------------------------------------------------- Earnings before interest expenses, taxes, depreciation and amortization 57,668,870 131% (12,256) 0% 81,880 ----------------------------------------------------------------------------------------------------------------------------- Interest Expense (4)(5) (15,298,177) - - Depreciation & Amortization (19,148,187) - (12,540) ----------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (34,446,364) - (12,540) ----------------------------------------------------------------------------------------------------------------------------- Gains(losses) on sales of interests in Real Estate - 4,457,176 - ----------------------------------------------------------------------------------------------------------------------------- Income before Minority Interest 23,222,506 4,444,920 69,340 ----------------------------------------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders - - - ----------------------------------------------------------------------------------------------------------------------------- Income from Operations 23,222,506 4,444,920 69,340 ----------------------------------------------------------------------------------------------------------------------------- Discontinued Operations: Income from Disposed Real Estate - - - Minority Interest of O.P. Unitholders Gain (losses) on Disposition of Discontinued Operations 194,441 ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - 194,441 - ----------------------------------------------------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - ----------------------------------------------------------------------------------------------------------------------------- NET INCOME $ 23,222,506 202% $ 4,639,361 40% $ 69,340 -----------------------------------------------------------------------------------------------------------------------------
Q4 03 (3 months ended 12/31/03) --------------------------------------------------------------------- OTHER Combined TOTAL % PROPERTIES CORPORATE TOTAL CHANGE -------------- --------------------------------- -------------- -------------- REAL ESTATE OPERATING REVENUES Base Rents $ - $ 56,257,974 61.2% Less Vacancies and Concessions - - -100.0% Straight-Lining of Base Rents - 1,055,305 254.3% Percentage Rents - 3,490,813 175.1% Lease Termination - 744,306 N/A Expense Recoveries and Other Income - 28,593,166 251.8% ----------------------------------------------------------------------------------------------------------------------------- TOTAL REVENUES 0% - - 90,141,564 108.3% ----------------------------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance - 24,323,764 116.3% Real Estate Taxes - 7,695,705 123.6% Minority Interest in Properties - 383,601 N/A ----------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 0% - - 32,403,070 120.6% ----------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------- NET OPERATING INCOME 0% - - 57,738,494 101.9% ----------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) Management Company Revenue 4,048,766 4,048,766 -4.4% Interest Income 335,524 335,524 74.8% General and Administrative: Corporate Payroll (3) (9,538,925) (9,538,925) 180.9% Other General & Administrative (3) (8,461,798) (8,461,798) 180.9% ----------------------------------------------------------------------------------------------------------------------------- Earnings before interest expenses, taxes, depreciation and amortization 0% (13,616,433) -31% 44,122,061 65.8% ----------------------------------------------------------------------------------------------------------------------------- Interest Expense (4)(5) (1,033,909) (16,332,086) 48.8% Depreciation & Amortization - (19,160,727) 155.4% ----------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (1,033,909) (35,492,813) 92.1% ----------------------------------------------------------------------------------------------------------------------------- Gains(losses) on sales of interests in Real Estate - 4,457,176 N/A ----------------------------------------------------------------------------------------------------------------------------- Income before Minority Interest (14,650,342) 13,086,424 60.9% ----------------------------------------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders (1,198,594) (1,198,594) -51.9% ----------------------------------------------------------------------------------------------------------------------------- Income from Operations (15,848,936) 11,887,830 -61.9% ----------------------------------------------------------------------------------------------------------------------------- Discontinued Operations: Income from Disposed Real Estate - - N/A Minority Interest of O.P. Unitholders (580,392) (580,392) N/A Gain (losses) on Disposition of Discontinued Operations 194,441 N/A ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS (580,392) (385,951) N/A Extraordinary item (Loss on early extinguishment of debt) - - N/A ----------------------------------------------------------------------------------------------------------------------------- NET INCOME 1% $ (16,429,328) -143% $ 11,501,879 56.9% -----------------------------------------------------------------------------------------------------------------------------
Q4 02 (3 months ended 12/31/02) ---------------------------------------------------------------------------------------- OTHER RETAIL MULTIFAMILY PROPERTIES --------------------------------- --------------------------------- -------------- REAL ESTATE OPERATING REVENUES Base Rents $ 19,332,915 $ 15,473,911 $ 83,421 Less Vacancies and Concessions - (1,301,859) - Straight-Lining of Base Rents 297,854 - - Percentage Rents 1,268,924 - - Lease Termination (56,329) 54,791 - Expense Recoveries and Other Income 7,427,404 701,190 (563) ----------------------------------------------------------------------------------------------------------------------------- TOTAL REVENUES 28,270,768 65% 14,928,033 34% 82,858 ----------------------------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 6,293,994 4,949,731 2,661 Real Estate Taxes 2,017,465 1,423,014 p897 Minority Interest in Properties ----------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 8,311,459 57% 6,372,745 43% 3,558 ----------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------- NET OPERATING INCOME 19,959,309 70% 8,555,288 30% 79,300 ----------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) Management Company Revenue - - - Interest Income - - - General and Administrative: Corporate Payroll (3) - - - Other General & Administrative (3) - - - ----------------------------------------------------------------------------------------------------------------------------- Earnings before interest expenses, taxes, depreciation and amortization 19,959,309 75% 8,555,288 32% 79,300 ----------------------------------------------------------------------------------------------------------------------------- Interest Expense (4)(5) (7,306,699) (3,670,036) - Depreciation s& Amortization (5,074,812) (2,415,300) (12,915) ----------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (12,381,511) (6,085,336) (12,915) ----------------------------------------------------------------------------------------------------------------------------- Gains(losses) on sales of interests in Real Estate - - - ----------------------------------------------------------------------------------------------------------------------------- Income before Minority Interest 7,577,798 2,469,952 66,385 ----------------------------------------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders - - - ----------------------------------------------------------------------------------------------------------------------------- Income from Operations 7,577,798 2,469,952 66,385 ----------------------------------------------------------------------------------------------------------------------------- Discontinued Operations: Income from Disposed Real Estate (17,217) - - Minority Interest of O.P. Unitholders Gain (losses) on Disposition of Discontinued Operations - ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS (17,217) - - ----------------------------------------------------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - ----------------------------------------------------------------------------------------------------------------------------- NET INCOME $ 7,560,581 103% $ 2,469,952 34% $ 66,385 -----------------------------------------------------------------------------------------------------------------------------
Q4 02 (3 months ended 12/31/02) --------------------------------------------------------------------- OTHER Combined PROPERTIES CORPORATE TOTAL -------------- --------------------------------- -------------- REAL ESTATE OPERATING REVENUES Base Rents $ - $ 34,890,247 Less Vacancies and Concessions - (1,301,859) Straight-Lining of Base Rents - 297,854 Percentage Rents - 1,268,924 Lease Termination (1,538) Expense Recoveries and Other Income - 8,128,031 ----------------------------------------------------------------------------------------------------------- TOTAL REVENUES 0% - - 43,281,659 ----------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance - 11,246,386 Real Estate Taxes - 3,441,376 Minority Interest in Properties ----------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 0% - - 14,687,762 ---------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- NET OPERATING INCOME 0% - - 28,593,897 ---------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) Management Company Revenue 4,233,533 4,233,533 Interest Income 191,895 191,895 General and Administrative: Corporate Payroll (3) (3,395,954) (3,395,954) Other General & Administrative (3) (3,012,605) (3,012,605) ---------------------------------------------------------------------------------------------------------- Earnings before interest expenses, taxes, depreciation and amortization 0% (1,983,131) -7% 26,610,766 ---------------------------------------------------------------------------------------------------------- Interest Expense (4)(5) - (10,976,735) Depreciation & Amortization - (7,503,027) ---------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) - (18,479,762) ---------------------------------------------------------------------------------------------------------- Gains(losses) on sales of interests in Real Estate - - ---------------------------------------------------------------------------------------------------------- Income before Minority Interest (1,983,131) 8,131,004 ---------------------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders (789,137) (789,137) ---------------------------------------------------------------------------------------------------------- Income from Operations (2,772,268) 7,341,867 ---------------------------------------------------------------------------------------------------------- Discontinued Operations: Income from Disposed Real Estate - (17,217) Minority Interest of O.P. Unitholders 6,605 6,605 Gain (losses) on Disposition of Discontinued Operations - ---------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS 6,605 (10,612) ---------------------------------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - ---------------------------------------------------------------------------------------------------------- NET INCOME 1% $ (2,765,663) -38% $ 7,331,255 ----------------------------------------------------------------------------------------------------------
(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) Includes approximately $5,900,000 in expenses associated with the merger with Crown American Realty Trust. (4) Capitalized interest expense for the line of credit and construction loans of $338,458 not included in the quarter ended 12/31/03 and $400,079 not included in the quarter ended 12/31/02. (5) Interest expenses from bank loans are classified as corporate in 2003. NOTE: Reconciliation to GAAP is on pages 38 to 43. PAGE 9 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] INCOME STATEMENT (1) (2) YEARLY COMPARISON (Line of Business)
CY 2003 (12 months ended 12/31/03) ----------------------------------------------------------------------------------------------------------------------------- OTHER RETAIL MULTIFAMILY PROPERTIES ----------------------------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING REVENUES Base Rents $ 136,351,896 $ 28,402,431 $ 337,154 Less Vacancies and Concessions (2,694,705) - Straight-Lining of Base Rents 2,805,547 - - Percentage Rents 4,765,061 - - Lease Termination 1,041,180 125,769 - Expense Recoveries and Other Income 64,537,689 1,063,887 1,864 ----------------------------------------------------------------------------------------------------------------------------- TOTAL REVENUES 209,501,373 88% 26,897,382 11% 339,018 0% ----------------------------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 55,923,463 9,971,515 13,093 Real Estate Taxes 18,957,900 2,459,030 2,696 Minority Interest in Properties 901,518 - - ----------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 75,782,881 86% 12,430,545 14% 15,789 0% ----------------------------------------------------------------------------------------------------------------------------- NET OPERATING INCOME 133,718,492 90% 14,466,837 10% 323,229 0% ----------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) Management Company Revenue - - - Interest Income - - - General and Administrative: Corporate Payroll (3) - - - Other General & Administrative (3) - - - ----------------------------------------------------------------------------------------------------------------------------- Earnings before interest expenses, taxes, depreciation and amortization 133,718,492 110% 14,466,837 12% 323,229 0% ----------------------------------------------------------------------------------------------------------------------------- Interest Expense (4)(5) (39,240,910) (5,652,058) - Depreciation & Amortization (42,490,065) (2,454,834) (51,158) ----------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (81,730,975) (8,106,892) (51,158) ----------------------------------------------------------------------------------------------------------------------------- Gains(losses) on sales of interests in Real Estate 1,111,692 15,087,618 - ----------------------------------------------------------------------------------------------------------------------------- Income before Minority Interest 53,099,209 21,447,563 272,071 ----------------------------------------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders - - - ----------------------------------------------------------------------------------------------------------------------------- Income from Operations 53,099,209 21,447,563 272,071 ----------------------------------------------------------------------------------------------------------------------------- Discontinued Operations: Income from Disposed Real Estate - - - Minority Interest of O.P. Unitholders Gain (losses) on Disposition of Discontinued Operations 178,121,005 ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - 178,121,005 - ----------------------------------------------------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - ----------------------------------------------------------------------------------------------------------------------------- NET INCOME $ 53,099,209 27% $ 199,568,568 102% $ 272,071 0% -----------------------------------------------------------------------------------------------------------------------------
CY 2003 CY 2002 (12 months ended 12/31/03) (12 months ended 12/31/02) --------------------------------------------------------------------------- ------------- ----------------------------- Combined TOTAL % CORPORATE TOTAL CHANGE RETAIL --------------------------------------------------------------------------- ------------- ----------------------------- REAL ESTATE OPERATING REVENUES Base Rents $ - $ 165,091,481 26.3% $ 70,607,350 Less Vacancies and Concessions - (2,694,705) -48.4% - Straight-Lining of Base Rents - 2,805,547 169.3% 1,041,694 Percentage Rents - 4,765,061 89.1% 2,519,565 Lease Termination - 1,166,949 3.1% 851,434 Expense Recoveries and Other Income - 65,603,440 133.7% 25,373,374 --------------------------------------------------------------------------- ------------- ----------------------------- TOTAL REVENUES - - 236,737,773 49.5% 100,393,417 63% --------------------------------------------------------------------------- ------------- ----------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance - 65,908,071 64.7% 21,174,597 Real Estate Taxes - 21,419,626 69.5% 7,359,346 Minority Interest in Properties - 901,518 N/A --------------------------------------------------------------------------- ------------- ----------------------------- TOTAL EXPENSES - - 88,229,215 67.5% 28,533,943 54% --------------------------------------------------------------------------- ------------- ----------------------------- NET OPERATING INCOME - - 148,508,558 40.6% 71,859,474 68% --------------------------------------------------------------------------- ------------- ----------------------------- TOTAL OTHER INCOME (EXPENSES) Management Company Revenue 11,994,203 11,994,203 9.0% - Interest Income 887,180 887,180 24.8% - General and Administrative: Corporate Payroll (3) (20,830,685) (20,830,685) 47.3% - Other General & Administrative (3) (19,336,946) (19,336,946) 82.3% - --------------------------------------------------------------------------- ------------- ----------------------------- Earnings before interest expenses, taxes, depreciation and amortization (27,286,248) -23% 121,222,310 30.9% 71,859,474 78% --------------------------------------------------------------------------- ------------- ----------------------------- Interest Expense (4)(5) (7,466,709) (52,359,677) 25.6% (27,541,955) Depreciation & Amortization - (44,996,057) 55.9% (19,502,954) --------------------------------------------------------------------------- ------------- ----------------------------- TOTAL OTHER INCOME (EXPENSES) (7,466,709) (97,355,734) 38.0% (47,044,909) --------------------------------------------------------------------------- ------------- ----------------------------- Gains(losses) on sales of interests in Real Estate - 16,199,310 N/A 4,085,164 --------------------------------------------------------------------------- ------------- ----------------------------- Income before Minority Interest (34,752,957) 40,065,886 53.3% 28,899,729 --------------------------------------------------------------------------- ------------- ----------------------------- Minority Interest of O.P. Unitholders (3,298,010) (3,298,010) -161.2% - --------------------------------------------------------------------------- ------------- ----------------------------- Income from Operations (38,050,967) 36,767,876 -47.8% 28,899,729 --------------------------------------------------------------------------- ------------- ----------------------------- Discontinued Operations: Income from Disposed Real Estate - - N/A 151,875 Minority Interest of O.P. Unitholders (18,848,730) (18,848,730) N/A Gain (losses) on Disposition of Discontinued Operations 178,121,005 N/A --------------------------------------------------------------------------- ------------- ----------------------------- TOTAL DISCONTINUED OPERATIONS (18,848,730) 159,272,275 N/A 151,875 --------------------------------------------------------------------------- ------------- ----------------------------- Extraordinary item (Loss on early extinguishment of debt) - - N/A - --------------------------------------------------------------------------- ------------- ----------------------------- NET INCOME $ (56,899,697) -29% $ 196,040,151 727.9% $ 29,051,604 123% --------------------------------------------------------------------------- ------------- -----------------------------
CY 2002 (12 months ended 12/31/02) ----------------------------------------------------------------------------------------------------------------------------- OTHER MULTIFAMILY PROPERTIES CORPORATE ----------------------------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING REVENUES Base Rents $ 59,824,272 $ 330,004 $ - Less Vacancies and Concessions (5,226,206) - - Straight-Lining of Base Rents - - - Percentage Rents - - - Lease Termination 279,945 - Expense Recoveries and Other Income 2,704,140 (1,126) - ----------------------------------------------------------------------------------------------------------------------------- TOTAL REVENUES 57,582,151 36% 328,878 0% - - ----------------------------------------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 18,828,550 19,889 - Real Estate Taxes 5,274,530 3,588 - Minority Interest in Properties ----------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 24,103,080 46% 23,477 0% - - ----------------------------------------------------------------------------------------------------------------------------- NET OPERATING INCOME 33,479,071 32% 305,401 0% - - ----------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) Management Company Revenue - - 11,002,570 Interest Income - - 710,687 General and Administrative: - Corporate Payroll (3) - - (14,137,939) Other General & Administrative (3) - - (10,608,902) ----------------------------------------------------------------------------------------------------------------------------- Earnings before interest expenses, taxes, depreciation and amortization 33,479,071 36% 305,401 0% (13,033,584) -14% ----------------------------------------------------------------------------------------------------------------------------- Interest Expense (4)(5) (14,258,905) - 103,931 Depreciation & Amortization (9,302,914) (51,660) - ----------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (23,561,819) (51,660) 103,931 ----------------------------------------------------------------------------------------------------------------------------- Gains(losses) on sales of interests in Real Estate - - - ----------------------------------------------------------------------------------------------------------------------------- Income before Minority Interest 9,917,252 253,741 (12,929,653) ----------------------------------------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders - - (1,262,556) ----------------------------------------------------------------------------------------------------------------------------- Income from Operations 9,917,252 253,741 (14,192,209) ----------------------------------------------------------------------------------------------------------------------------- Discontinued Operations: Income from Disposed Real Estate - - - Minority Interest of O.P. Unitholders (1,352,412) Gain (losses) on Disposition of Discontinued Operations - ----------------------------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - - (1,352,412) Extraordinary item (Loss on early extinguishment of debt) - - - ----------------------------------------------------------------------------------------------------------------------------- NET INCOME $ 9,917,252 42% $ 253,741 1% $ (15,544,621) -66% -----------------------------------------------------------------------------------------------------------------------------
CY 2002 (12 months ended 12/31/ 02) Combined TOTAL REAL ESTATE OPERATING REVENUES Base Rents $ 130,761,626 Less Vacancies and Concessions (5,226,206) Straight-Lining of Base Rents 1,041,694 Percentage Rents 2,519,565 Lease Termination 1,131,379 Expense Recoveries and Other Income 28,076,388 ------------------------------------------ TOTAL REVENUES 158,304,446 ------------------------------------------ REAL ESTATE OPERATING EXPENSES Operating and Maintenance 40,023,036 Real Estate Taxes 12,637,464 Minority Interest in Properties ------------------------------------------ TOTAL EXPENSES 52,660,500 NET OPERATING INCOME 105,643,946 ------------------------------------------ TOTAL OTHER INCOME (EXPENSES) Management Company Revenue 11,002,570 Interest Income 710,687 General and Administrative: - Corporate Payroll (3) (14,137,939) Other General & Administrative (3) (10,608,902) ------------------------------------------ Earnings before interest expenses, taxes, depreciation and amortization 92,610,362 ------------------------------------------ Interest Expense (4)(5) (41,696,929) Depreciation & Amortization (28,857,528) ------------------------------------------ TOTAL OTHER INCOME (EXPENSES) (70,554,457) ------------------------------------------ Gains(losses) on sales of interests in Real Estate 4,085,164 ------------------------------------------ Income before Minority Interest 26,141,069 ------------------------------------------ Minority Interest of O.P. Unitholders (1,262,556) ------------------------------------------ Income from Operations 24,878,513 Discontinued ------------------------------------------ Operations: Income from Disposed Real Estate 151,875 Minority Interest of O.P. Unitholders (1,352,412) Gain (losses) on Disposition of Discontinued Operations - ------------------------------------------ TOTAL DISCONTINUED OPERATIONS (1,200,537) ------------------------------------------ Extraordinary item (Loss on early extinguishment of debt) - ------------------------------------------ NET INCOME $ 23,677,976 ------------------------------------------
(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) Includes approximately $6,400,000 in expenses associated with the acquisition of the six shopping malls from the Rouse Company and the merger with Crown American Realty Trust (4) Capitalized interest expense for the line of credit and construction loans of $1,407,832 not included in the year ended 12/31/03 and $1,722,485 not included in the year ended 12/31/02. (5) Interest expenses from bank loans are classified as corporate in 2003. NOTE: Reconciliation to GAAP is on pages 38 to 43. PAGE 10 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] RETAIL INCOME STATEMENT (1) QUARTERLY COMPARISON (Property Status)
Q4 03 (3 months ended 12/31/03) ---------------------------------------------------------------------------------------- Combined TOTAL WO JVs -------------- --------------------------------- --------------------------------- R.E. OPERATING REVENUES Base Rents $ 56,172,818 $ 50,753,394 $ 5,419,424 Straight-Lining of Base Rents 1,055,305 1,058,632 (3,327) Percentage Rents 3,490,813 3,474,981 15,832 Lease Termination and Other Income 744,306 744,306 - Exp. Recoveries and Other Income 28,591,304 26,368,757 2,222,547 --------------------------------------------------------------------------------------- TOTAL REVENUES 90,054,546 82,400,070 92% 7,654,476 8% --------------------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 24,306,380 22,365,211 1,941,169 Real Estate Taxes 7,695,695 7,026,497 669,198 Minority Interest in Properties 383,601 383,601 - --------------------------------------------------------------------------------------- Total Operating Expenses 32,385,676 29,775,309 92% 2,610,367 8% --------------------------------------------------------------------------------------- NET OPERATING INCOME 57,668,870 52,624,761 91% 5,044,109 9% --------------------------------------------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (15,298,177) (13,107,191) (2,190,986) Depreciation & Amortization (19,148,187) (17,904,515) (1,243,672) --------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (34,446,364) (31,011,706) (3,434,658) --------------------------------------------------------------------------------------- Gains (losses) on sales of int. in R.E - - - --------------------------------------------------------------------------------------- Income before Minority Int. 23,222,506 21,613,055 1,609,451 --------------------------------------------------------------------------------------- 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 $ 23,222,506 $ 21,613,055 93% $ 1,609,451 7% ============== ============== ============== ============== ============== Q4 02 (3 months ended 12/31/02) --------------------------------- % Change TOTAL % Change WO % Change JVs Combined TOTAL WO -------------- -------------- -------------- -------------- -------------- R.E. OPERATING REVENUES Base Rents 190.6% 304.6% -20.2% $ 19,332,915 $ 12,543,439 Straight-Lining of Base Rents 254.3% 332.4% -106.3% 297,854 244,804 Percentage Rents 175.1% 238.9% -93.5% 1,268,924 1,025,322 Lease Termination and Other Income N/A N/A N/A (56,329) (92,329) Exp. Recoveries and Other Income 284.9% 483.0% -23.5% 7,427,404 4,522,896 -------------------------------------------------- -------------------------------- TOTAL REVENUES 218.5% 351.7% -23.7% 28,270,768 18,244,132 -------------------------------------------------- -------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 286.2% 531.0% -29.4% 6,293,994 3,544,435 Real Estate Taxes 281.5% 467.0% -14.0% 2,017,465 1,239,210 Minority Interest in Properties N/A N/A N/A - - Total Operating Expenses 289.7% 522.4% -26.0% 8,311,459 4,783,645 -------------------------------------------------- -------------------------------- NET OPERATING INCOME 188.9% 291.0% -22.4% 19,959,309 13,460,487 -------------------------------------------------- -------------------------------- OTHER INCOME (EXP.) Interest Expense 109.4% 224.0% -32.8% (7,306,699) (4,046,037) Depreciation & Amortization 277.3% 395.2% -14.8% (5,074,812) (3,615,500) -------------------------------------------------- -------------------------------- TOTAL OTHER INCOME (EXP.) 178.2% 304.8% -27.2% (12,381,511) (7,661,537) -------------------------------------------------- -------------------------------- Gains (losses) on sales of int. in R.E N/A N/A N/A - - -------------------------------------------------- -------------------------------- Income before Minority Int. 206.5% 272.7% -9.5% 7,577,798 5,798,950 -------------------------------------------------- -------------------------------- Discontinued Operations: - Income from Disposed Real Estate N/A N/A N/A (17,217) (17,217) -------------------------------------------------- -------------------------------- Gain (losses) on Disposition of Discontinued Operations N/A N/A N/A -------------------------------------------------- -------------------------------- TOTAL DISCONTINUED OPERATIONS N/A N/A N/A (17,217) (17,217) -------------------------------------------------- -------------------------------- Extraordinary item (Loss on early extinguishments of debt) N/A N/A N/A - - -------------- -------------- -------------- -------------- -------------- NET INCOME 207.2% 273.8% -9.5% $ 7,560,581 $ 5,781,733 ============== ============== ============== ============== ==============
Q4 02 (3 months ended 12/31/02) --------------------------------------------------- WO JVs -------------- --------------------------------- R.E. OPERATING REVENUES Base Rents $ 6,789,476 Straight-Lining of Base Rents 53,050 Percentage Rents 243,602 Lease Termination and Other Income 36,000 Exp. Recoveries and Other Income 2,904,508 -------------------------------------------------- TOTAL REVENUES 65% 10,026,636 35% -------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 2,749,559 Real Estate Taxes 778,255 Minority Interest in Properties - -------------------------------------------------- Total Operating Expenses 58% 3,527,814 42% -------------------------------------------------- NET OPERATING INCOME 67% 6,498,822 33% -------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (3,260,663) Depreciation & Amortization (1,459,312) -------------------------------------------------- TOTAL OTHER INCOME (EXP.) (4,719,975) -------------------------------------------------- Gains (losses) on sales of int. in R.E - -------------------------------------------------- Income before Minority Int. 1,778,847 -------------------------------------------------- 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 76% $ 1,778,847 24% ============== ============== ==============
SAME STORE COMPARISON
Q4 03 (3 months ended 12/31/03) ---------------------------------------------------------------------------------------- Combined SAME NEW TOTAL(2) --------------------------------------------------------------------------------------- Base Rents $ 56,172,818 $ 14,668,755 $ 37,464,979 Straight-Lining of Base Rents 1,055,305 149,000 868,743 Percentage Rents 3,490,813 674,956 2,408,154 Lease Termination 744,306 78,750 665,556 Exp. Recoveries and Other Income 28,591,304 4,832,838 21,547,620 --------------------------------------------------------------------------------------- TOTAL REVENUES 90,054,546 20,404,299 23% 62,955,052 70% R.E. OPERATING EXPENSES Operating and Maintenance 24,306,380 4,090,695 18,301,298 Real Estate Taxes 7,695,695 1,541,332 5,748,419 383,601 - 383,601 --------------------------------------------------------------------------------------- Total Operating Expenses 32,385,676 5,632,027 17% 24,433,318 75% --------------------------------------------------------------------------------------- NET OPERATING INCOME 57,668,870 14,772,272 26% 38,521,734 67% --------------------------------------------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (15,298,177) (4,279,760) (9,805,806) Depreciation & Amortization (19,148,187) (5,551,178) (12,610,718) -------------- --------------------------------- --------------------------------- TOTAL OTHER INCOME (EXP.) (34,446,364) (9,830,938) (22,416,524) -------------- --------------------------------- --------------------------------- Gain (losses) on sales of int. in R.E. - - --------------------------------------------------------------------------------------- Income before Minority Int. 23,222,506 4,941,334 16,105,210 --------------------------------------------------------------------------------------- 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 $ 23,222,506 $ 4,941,334 21% $ 16,105,210 69% =======================================================================================
Q4 03 (3 months ended 12/31/03) --------------------------------- % Change Same REDEV DIVEST Store --------------------------------- --------------------------------- -------------- Base Rents $ 4,039,085 $ - 1.5% Straight-Lining of Base Rents 37,562 - -28.2% Percentage Rents 407,703 - -11.9% Lease Termination - - N/A Exp. Recoveries and Other Income 2,210,846 - 10.3% --------------------------------- --------------------------------- -------------- TOTAL REVENUES 6,695,196 7% - 0% 3.5% R.E. OPERATING EXPENSES Operating and Maintenance 1,914,387 - 10.2% Real Estate Taxes 405,944 - 4.1% - N/A --------------------------------- --------------------------------- -------------- Total Operating Expenses 2,320,331 7% - 0% 8.4% --------------------------------- --------------------------------- -------------- NET OPERATING INCOME 4,374,865 8% - 0% 1.7% --------------------------------- --------------------------------- -------------- OTHER INCOME (EXP.) Interest Expense (1,212,611) - 23.0% Depreciation & Amortization (986,291) - 46.4% --------------------------------- --------------------------------- -------------- TOTAL OTHER INCOME (EXP.) (2,198,902) - 35.2% --------------------------------- --------------------------------- -------------- Gain (losses) on sales of int. in - N/A R.E. --------------------------------- --------------------------------- -------------- Income before Minority Int. 2,175,963 - -31.9% --------------------------------- --------------------------------- -------------- 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 $ 2,175,963 9% $ - 0% -31.9% ================================= ================================= ============== Q4 02 (3 months ended 12/31/02) ---------------------------------------------------------------------------------------- Combined SAME NEW TOTAL(2) -------------- --------------------------------- --------------------------------- Base Rents $ 19,332,915 $ 14,458,295 $ 1,019,338 Straight-Lining of Base Rents 297,854 207,608 25,085 Percentage Rents 1,268,924 766,195 24,139 Lease Termination (56,329) (92,329) 36,000 Exp. Recoveries and Other Income 7,427,404 4,382,618 950,763 --------------------------------------------------------------------------------------- TOTAL REVENUES 28,270,768 19,722,387 70% 2,055,325 7% R.E. OPERATING EXPENSES Operating and Maintenance 6,293,994 3,713,390 826,768 Real Estate Taxes 2,017,465 1,480,971 133,181 - - - --------------------------------------------------------------------------------------- Total Operating Expenses 8,311,459 5,194,361 62% 959,949 12% --------------------------------------------------------------------------------------- NET OPERATING INCOME 19,959,309 14,528,026 73% 1,095,376 5% --------------------------------------------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (7,306,699) (3,479,548) (2,493,719) Depreciation & Amortization (5,074,812) (3,791,160) (151,289) --------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (12,381,511) (7,270,708) (2,645,008) --------------------------------------------------------------------------------------- Gain (losses) on sales of int. in R.E. - - --------------------------------------------------------------------------------------- Income before Minority Int. 7,577,798 7,257,318 (1,549,632) --------------------------------------------------------------------------------------- Discontinued Operations: Income from Disposed Real Estate (17,217) - - Gain (losses) on Disposition of Discontinued Operations --------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS (17,217) --------------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - --------------------------------------------------------------------------------------- NET INCOME $ 7,560,581 $ 7,257,318 96% $ (1,549,632) -20% =======================================================================================
Q4 02 (3 months ended 12/31/02) --------------------------------- REDEV DIVEST --------------------------------- -------------- Base Rents $ 3,855,282 $ - Straight-Lining of Base Rents 65,161 - Percentage Rents 478,590 - Lease Termination - - Exp. Recoveries and Other Income 2,094,023 3,692 --------------------------------- -------------- TOTAL REVENUES 6,493,056 23% 3,692 R.E. OPERATING EXPENSES Operating and Maintenance 1,753,836 20,909 Real Estate Taxes 403,313 - - - --------------------------------- -------------- Total Operating Expenses 2,157,149 26% 20,909 --------------------------------- -------------- NET OPERATING INCOME 4,335,907 22% (17,217) --------------------------------- -------------- OTHER INCOME (EXP.) Interest Expense (1,333,432) - Depreciation & Amortization (1,132,363) - --------------------------------- -------------- TOTAL OTHER INCOME (EXP.) (2,465,795) - --------------------------------- -------------- Gain (losses) on sales of int. in R.E. - --------------------------------- -------------- Income before Minority Int. 1,870,112 (17,217) --------------------------------- -------------- Discontinued Operations: Income from Disposed Real Estate - - Gain (losses) on Disposition of Discontinued Operations --------------------------------- -------------- TOTAL DISCONTINUED OPERATIONS (17,217) --------------------------------- -------------- Extraordinary item (Loss on early extinguishment of debt) - - --------------------------------- -------------- NET INCOME $ 1,870,112 25% $ (17,217) ================================= ==============
(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 38 to 43. PAGE 11 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] RETAIL INCOME STATEMENT (1) YEARLY COMPARISON (Property Status)
CY 2003 (12 months ended 12/31/03) -------------------------------------------------------- Combined WO JVs TOTAL ---------------- ---------------- ---------------- R.E. OPERATING REVENUES Base Rents $ 136,351,896 $ 11,750,593 $ 24,601,303 Straight-Lining of Base Rents 2,805,547 2,633,353 172,194 Percentage Rents 4,765,061 4,422,624 342,437 Lease Termination and Other Income 1,041,180 1,030,185 10,995 Exp. Recoveries and Other Income 64,537,689 54,467,531 10,070,158 ---------------- ---------------- ---------------- TOTAL REVENUES 209,501,373 174,304,286 83% 35,197,087 17% ---------------- ---------------- ---------------- R.E. OPERATING EXPENSES Operating and Maintenance 55,923,463 46,305,880 9,617,583 Real Estate Taxes 18,957,900 15,960,853 2,997,047 Minority Interest in Properties 901,518 901,518 - ---------------- ---------------- ---------------- Total Operating Expenses 75,782,881 63,168,251 83% 12,614,630 17% ---------------- ---------------- ---------------- NET OPERATING INCOME 133,718,492 111,136,035 83% 22,582,457 17% ---------------- ---------------- ---------------- OTHER INCOME (EXP.) Interest Expense (39,240,910) (28,300,865) (10,940,045) Depreciation & Amortization (42,490,065) (37,564,903) (4,925,162) ---------------- ---------------- ---------------- TOTAL OTHER INCOME (EXP.) (81,730,975) (65,865,768) (15,865,207) ---------------- ---------------- ---------------- Gains (losses) on sales of int. in R.E 1,111,692 1,111,692 - Income before Minority Int. 53,099,209 46,381,959 6,717,250 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 $ 53,099,209 $ 46,381,959 87% $ 6,717,250 13% ---------------- ---------------- ---------------- % Change % Change % Change TOTAL WO ---------------- ---------------- ---------------- R.E. OPERATING REVENUES Base Rents 93.1% 148.9% -4.3% Straight-Lining of Base Rents 169.3% 228.2% -28.1% Percentage Rents 89.1% 127.1% -40.1% Lease Termination and Other Income N/A N/A N/A Exp. Recoveries and Other Income 154.4% 272.6% -6.4% ---------------- ---------------- ---------------- TOTAL REVENUES 108.7% 176.6% -5.8% ---------------- ---------------- ---------------- R.E. OPERATING EXPENSES Operating and Maintenance 164.1% 288.4% 4.0% Real Estate Taxes 157.6% 269.5% -1.4% Minority Interest in Properties N/A N/A N/A ---------------- ---------------- ---------------- Total Operating Expenses 165.6% 288.9% 2.6% ---------------- ---------------- ---------------- NET OPERATING INCOME 86.1% 137.6% -10.0% ---------------- ---------------- ---------------- OTHER INCOME (EXP.) Interest Expense 42.5% 94.8% -16.0% Depreciation & Amortization 117.9% 190.8% -25.2% ---------------- ---------------- ---------------- TOTAL OTHER INCOME (EXP.) 73.7% 140.0% -19.1% ---------------- ---------------- ---------------- Gains (losses) on sales of int. in R.E N/A N/A N/A Income before Minority Int. 83.7% 98.1% 22.4% Discontinued Operations: - Income from Disposed Real Estate N/A N/A N/A Gain (losses) on Disposition of Discontinued Operations N/A TOTAL DISCONTINUED OPERATIONS N/A N/A Extraordinary item (Loss on early extinguishments of debt) N/A N/A N/A ---------------- ---------------- ---------------- NET INCOME 82.8% 96.8% 22.4% ---------------- ---------------- ----------------
CY 2002 (12 months ended 12/31/02) -------------------------------------------------------- Combined WO JVs JVs TOTAL ---------------- ---------------- ---------------- R.E. OPERATING REVENUES Base Rents $ 70,607,350 $ 44,889,321 $ 25,718,029 Straight-Lining of Base Rents 1,041,694 802,346 239,348 Percentage Rents 2,519,565 1,947,781 571,784 Lease Termination and Other Income 851,434 754,302 97,132 Exp. Recoveries and Other Income 25,373,374 14,618,191 10,755,183 ---------------- ---------------- ---------------- TOTAL REVENUES 100,393,417 63,011,941 63% 37,381,476 37% ---------------- ---------------- ---------------- R.E. OPERATING EXPENSES Operating and Maintenance 21,174,597 11,922,757 9,251,840 Real Estate Taxes 7,359,346 4,319,121 3,040,225 Minority Interest in Properties - - - ---------------- ---------------- ---------------- Total Operating Expenses 28,533,943 16,241,878 57% 12,292,065 43% ---------------- ---------------- ---------------- NET OPERATING INCOME 71,859,474 46,770,063 65% 25,089,411 35% ---------------- ---------------- ---------------- OTHER INCOME (EXP.) Interest Expense (27,541,955) (14,524,767) (13,017,189) Depreciation & Amortization (19,502,954) (12,917,276) (6,585,678) ---------------- ---------------- ---------------- TOTAL OTHER INCOME (EXP.) (47,044,909) (27,442,043) (19,602,867) ---------------- ---------------- ---------------- Gains (losses) on sales of int. in R.E 4,085,164 4,085,164 - Income before Minority Int. 28,899,729 23,413,184 5,486,544 Discontinued Operations: - Income from Disposed Real Estate 151,875 151,875 Gain (losses) on Disposition of Discontinued Operations N/A N/A TOTAL DISCONTINUED OPERATIONS N/A 151,875 151,875 Extraordinary item (Loss on early extinguishments of debt) - - - ---------------- ---------------- ---------------- NET INCOME $ 29,051,604 $ 23,565,059 81% $ 5,486,544 19% ---------------- ---------------- ----------------
SAME STORE COMPARISON
CY 2003 (12 months ended 12/31/03) Combined TOTAL (2) SAME NEW REDEV ------------- ------------- ------------- ------------- Base Rents $ 136,351,896 $ 46,751,966 $ 74,844,596 $ 14,755,335 Straight-Lining of Base Rents 2,805,547 688,338 1,877,361 239,848 Percentage Rents 4,765,061 1,209,707 2,816,629 738,725 Lease Termination 1,041,180 262,500 778,680 - Exp. Recoveries and Other Income 64,537,689 14,682,875 42,904,369 6,950,445 ------------- ------------- ------------- ------------- TOTAL REVENUES 209,501,373 ------------- ------------- ------------- ------------- R.E. OPERATING EXPENSES Operating and Maintenance 55,923,463 12,031,729 37,571,188 6,320,546 Real Estate Taxes 18,957,900 5,103,101 12,267,016 1,587,783 901,518 - 901,518 - ------------- ------------- ------------- ------------- Total Operating Expenses 75,782,881 ------------- ------------- ------------- ------------- NET OPERATING INCOME 133,718,492 ------------- ------------- ------------- ------------- OTHER INCOME (EXP.) Interest Expense (39,240,910) (12,169,313) (22,215,134) (4,856,463) Depreciation & Amortization (42,490,065) (12,432,023) (25,756,611) (4,301,431) ------------- ------------- ------------- ------------- TOTAL OTHER INCOME (EXP.) (81,730,975) (24,601,336) (47,971,745) (9,157,894) ------------- ------------- ------------- ------------- Gain (losses) on sales of int. in R.E. 1,111,692 - 1,111,692 Income before Minority Int. 53,099,209 21,859,220 24,510,168 6,729,822 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 $ 53,099,209 $ 21,859,220 41% $ 24,510,168 46% $ 6,729,822 13% ------------- ------------- ------------- -------------
CY 2003 (12 months ended 12/31/03) % Change Combined DIVEST Same Store TOTAL (2) SAME ------------- ------------- ------------- ------------- Base Rents $ - 2.2% $ 70,607,350 $ 45,757,398 Straight-Lining of Base Rents - 0.5% 1,041,694 684,788 Percentage Rents - -11.3% 2,519,565 1,363,550 Lease Termination - N/A 851,434 712,452 Exp. Recoveries and Other Income - 10.9% 25,373,374 13,245,563 ------------- ------------- ------------- ------------- TOTAL REVENUES - 0% 3.0% 100,393,417 ------------- ------------- ------------- ------------- R.E. OPERATING EXPENSES Operating and Maintenance - 12.9% 21,174,597 10,661,145 Real Estate Taxes - 9.3% 7,359,346 4,668,099 N/A - - - ------------- ------------- ------------- ------------- Total Operating Expenses - 0% 11.8% 28,533,943 ------------- ------------- ------------- ------------- NET OPERATING INCOME - 0% 0.1% 71,859,474 ------------- ------------- ------------- ------------- OTHER INCOME (EXP.) Interest Expense - 18.0% (27,541,955) (10,312,456) Depreciation & Amortization - 1.7% (19,502,954) (12,229,512) ------------- ------------- ------------- ------------- TOTAL OTHER INCOME (EXP.) - 9.1% (47,044,909) (22,541,968) ------------- ------------- ------------- ------------- Gain (losses) on sales of int. in R.E. N/A 4,085,164 32,500 - Income before Minority Int. - -8.6% 28,899,729 23,925,039 Discontinued Operations: Income from Disposed Real Estate - N/A 151,875 - Gain (losses) on Disposition of Discontinued Operations - N/A TOTAL DISCONTINUED OPERATIONS - N/A 151,875 Extraordinary item (Loss on early extinguishment of debt) - N/A - - ------------- ------------- ------------- ------------- NET INCOME $ - 0% -8.6% $ 29,051,604 $ 23,925,039 82% ------------- ------------- ------------- ------------- NEW REDEV DIVEST ------------- ------------- ------------- Base Rents $ 10,645,586 $ 14,204,366 $ 847,898 Straight-Lining of Base Rents 198,749 158,157 5,698 Percentage Rents 151,861 1,004,154 12,700 Lease Termination 79,851 59,131 - Exp. Recoveries and Other Income 5,410,474 6,717,337 138,805 ------------- ------------- ------------- TOTAL REVENUES ------------- ------------- ------------- R.E. OPERATING EXPENSES Operating and Maintenance 4,366,193 6,147,259 101,187 Real Estate Taxes 1,241,141 1,450,106 88,332 - - ------------- ------------- ------------- Total Operating Expenses ------------- ------------- ------------- NET OPERATING INCOME ------------- ------------- ------------- OTHER INCOME (EXP.) Interest Expense (12,103,514) (5,125,985) (379,192) Depreciation & Amortization (3,126,140) (4,147,302) (284,515) ------------- ------------- ------------- TOTAL OTHER INCOME (EXP.) (15,229,654) (9,273,287) (663,707) ------------- ------------- ------------- Gain (losses) on sales of int. in R.E. - 4,052,664 Income before Minority Int. (4,350,467) 5,272,493 4,204,539 Discontinued Operations: Income from Disposed Real Estate - - - Gain (losses) on Disposition of Discontinued Operations TOTAL DISCONTINUED OPERATIONS 4,204,539 Extraordinary item (Loss on early extinguishment of debt) - - ------------- ------------- ------------- NET INCOME $ (4,350,467)-15%$ 5,272,493 18% $ 4,204,539 ------------- ------------- -------------
(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 38 to 43. PAGE 12 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] RETAIL INCOME STATEMENT (1) QUARTERLY COMPARISON (Property Status)
Q4 03 (3 months ended 12/31/03) --------------------------------------------------------------------------------------- Combined Enclosed Mall Power Center TOTAL --------------------------------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 56,172,818 $ 47,978,472 $ 6,660,878 Straight-Lining of Base Rents 1,055,305 923,572 134,314 Percentage Rents 3,490,813 3,411,217 79,596 Lease Termination and Other Income 744,306 665,556 78,750 Exp. Recoveries and Other Income 28,591,304 26,768,803 1,301,769 --------------------------------------------------------------------------------------- TOTAL REVENUES 90,054,546 79,747,620 89% 8,255,307 9% --------------------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 24,306,380 23,235,944 746,445 Real Estate Taxes 7,695,695 6,759,060 729,862 Minority Interest in Properties 383,601 383,601 - --------------------------------------------------------------------------------------- Total Operating Expenses 32,385,676 30,378,605 94% 1,476,307 5% --------------------------------------------------------------------------------------- NET OPERATING INCOME 57,668,870 49,369,015 86% 6,779,000 12% --------------------------------------------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (15,298,177) (13,592,812) (1,668,332) Depreciation & Amortization (19,148,187) (16,832,035) (1,885,239) --------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (34,446,364) (30,424,847) (3,553,571) --------------------------------------------------------------------------------------- Gains(losses) on sales of int. in R.E. - - - --------------------------------------------------------------------------------------- Income before Minority Int. 23,222,506 18,944,168 3,225,429 --------------------------------------------------------------------------------------- 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 $ 23,222,506 $ 18,944,168 82% $ 3,225,429 14% ======================================================================================= Q4 03 (3 months ended 12/31/03) -------------------------------- --------------------------------------------------- Strip Center % Change % Change % Change TOTAL Enclosed Mall Power Center -------------------------------- --------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 1,533,468 190.6% 320.3% 2.5% Straight-Lining of Base Rents (2,581) 254.3% 391.1% 20.4% Percentage Rents - 175.1% 198.5% -22.9% Lease Termination and Other Income - N/A N/A N/A Exp. Recoveries and Other Income 520,732 284.9% 357.3% 17.3% -------------------------------- --------------------------------------------------- TOTAL REVENUES 2,051,619 2% 218.5% 327.9% 6.8% -------------------------------- --------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 323,991 286.2% 341.9% 5.9% Real Estate Taxes 206,773 281.5% 510.9% -3.5% Minority Interest in Properties - N/A N/A N/A -------------------------------- --------------------------------------------------- Total Operating Expenses 530,764 2% 289.7% 377.3% 1.1% -------------------------------- --------------------------------------------------- NET OPERATING INCOME 1,520,855 3% 188.9% 302.3% 8.2% -------------------------------- --------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (37,033) 109.4% 248.7% -49.1% Depreciation & Amortization (430,913) 277.3% 517.4% 4.1% -------------------------------- --------------------------------------------------- TOTAL OTHER INCOME (EXP.) (467,946) 178.2% 359.3% -30.1% -------------------------------- --------------------------------------------------- Gains(losses) on sales of int. in R.E. - N/A N/A N/A -------------------------------- --------------------------------------------------- Income before Minority Int. 1,052,909 206.5% 235.4% 172.9% -------------------------------- --------------------------------------------------- Discontinued Operations: Income from Disposed Real Estate - -100.0% N/A N/A -------------------------------- --------------------------------------------------- Gain (losses) on Disposition of Discontinued Operations N/A N/A N/A -------------------------------- --------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - N/A N/A N/A -------------------------------- --------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - N/A N/A N/A -------------------------------- --------------------------------------------------- NET INCOME $ 1,052,909 5% 207.2% 235.4% 172.9% ================================ ===================================================
SAME STORE COMPARISON
Q4 02 (3 months ended 12/31/02) -------------- ---------------------------------------------------------------------- % Change Combined Enclosed Mall Power Center Strip Center TOTAL -------------- ---------------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents 7.9% $ 19,332,915 $ 11,415,795 $ 6,495,768 Straight-Lining of Base Rents 45.3% 297,854 188,074 111,556 Percentage Rents N/A 1,268,924 1,142,955 103,232 Lease Termination and Other Income N/A (56,329) 36,000 (92,329) Exp. Recoveries and Other Income 12.3% 7,427,404 5,853,641 1,109,883 -------------- ---------------------------------------------------------------------- TOTAL REVENUES 7.6% 28,270,768 18,636,465 66% 7,728,110 -------------- ---------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance -2.3% 6,293,994 5,257,757 704,673 Real Estate Taxes 33.4% 2,017,465 1,106,499 755,993 Minority Interest in Properties N/A - - - -------------- ---------------------------------------------------------------------- Total Operating Expenses 9.1% 8,311,459 6,364,256 77% 1,460,666 -------------- ---------------------------------------------------------------------- NET OPERATING INCOME 7.1% 19,959,309 12,272,209 61% 6,267,444 -------------- ---------------------------------------------------------------------- OTHER INCOME (EXP.) Interest Expense -72.3% (7,306,699) (3,898,063) (3,275,182) Depreciation & Amortization -19.9% (5,074,812) (2,726,457) (1,810,139) -------------- ---------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) -30.3% (12,381,511) (6,624,520) (5,085,321) -------------- ---------------------------------------------------------------------- Gains(losses) on sales of int. in R.E. N/A - - - -------------- ---------------------------------------------------------------------- Income before Minority Int. 40.8% 7,577,798 5,647,689 1,182,123 -------------- ---------------------------------------------------------------------- Discontinued Operations: Income from Disposed Real Estate N/A (17,217) - - -------------- ---------------------------------------------------------------------- Gain (losses) on Disposition of Discontinued Operations N/A -------------- ---------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS N/A (17,217) - - -------------- ---------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) N/A - - - -------------- ---------------------------------------------------------------------- NET INCOME 44.1% $ 7,560,581 $ 5,647,689 75% $ 1,182,123 ============== ====================================================================== Q4 02 (3 months ended 12/31/02) --------------------------------------------------- Power Center Strip Center --------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 1,421,352 Straight-Lining of Base Rents (1,776) Percentage Rents 22,737 Lease Termination and Other Income - Exp. Recoveries and Other Income 463,880 --------------------------------------------------- TOTAL REVENUES 27% 1,906,193 7% --------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 331,564 Real Estate Taxes 154,973 Minority Interest in Properties - --------------------------------------------------- Total Operating Expenses 18% 486,537 6% --------------------------------------------------- NET OPERATING INCOME 31% 1,419,656 7% --------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (133,455) Depreciation & Amortization (538,216) --------------------------------------------------- TOTAL OTHER INCOME (EXP.) (671,671) --------------------------------------------------- Gains(losses) on sales of int. in R.E. - --------------------------------------------------- Income before Minority Int. 747,985 --------------------------------------------------- Discontinued Operations: Income from Disposed Real Estate (17,217) --------------------------------------------------- Gain (losses) on Disposition of Discontinued Operations TOTAL DISCONTINUED OPERATIONS (17,217) --------------------------------------------------- "Extraordinary item (Loss on early extinguishment of debt) - --------------------------------------------------- NET INCOME 16% $ 730,768 10% ===================================================
SAME STORE COMPARISON
Q4 03 (3 months ended 12/31/03) --------------------------------------------------------------------------------------- Combined Enclosed Mall Power Center TOTAL --------------------------------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 14,668,755 $ 6,665,365 $ 6,660,878 Straight-Lining of Base Rents 149,000 19,334 134,314 Percentage Rents 674,956 595,360 79,596 Lease Termination 78,750 - 78,750 Exp. Recoveries and Other Income 4,832,838 3,144,556 1,301,769 --------------------------------------------------------------------------------------- TOTAL REVENUES 20,404,299 10,424,615 51% 8,255,307 40% --------------------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 4,090,695 3,096,712 746,445 Real Estate Taxes 1,541,332 656,749 729,862 Minority Interest in Properties - - - --------------------------------------------------------------------------------------- Total Operating Expenses 5,632,027 3,753,461 67% 1,476,307 26% --------------------------------------------------------------------------------------- NET OPERATING INCOME 14,772,272 6,671,154 45% 6,779,000 46% --------------------------------------------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (4,279,760) (2,574,395) (1,668,332) Depreciation & Amortization (5,551,178) (3,292,089) (1,885,239) --------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (9,830,938) (5,866,484) (3,553,571) --------------------------------------------------------------------------------------- Gain (losses) on sales of int. in R.E - - - --------------------------------------------------------------------------------------- Income before Minority Int. 4,941,334 804,670 3,225,429 --------------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - --------------------------------------------------------------------------------------- NET INCOME $ 4,941,334 $ 804,670 16% $ 3,225,429 65% ======================================================================================= Q4 03 (3 months ended 12/31/03) -------------------------------- --------------------------------------------------- Strip Center % Change % Change % Change TOTAL (1) Enclosed Mall Power Center -------------------------------- --------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 1,342,512 1.5% -0.3% 2.5% Straight-Lining of Base Rents (4,648) -28.2% -75.5% 20.4% Percentage Rents - -11.9% -10.3% -22.9% Lease Termination - N/A N/A N/A Exp. Recoveries and Other Income 386,513 10.3% 10.4% 17.3% -------------------------------- --------------------------------------------------- TOTAL REVENUES 1,724,377 8% 3.5% 1.4% 6.8% -------------------------------- --------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 247,538 10.2% 13.2% 5.9% Real Estate Taxes 154,721 4.1% 8.6% -3.5% Minority Interest in Properties - N/A N/A N/A -------------------------------- --------------------------------------------------- Total Operating Expenses 402,259 7% 8.4% 12.3% 1.1% -------------------------------- --------------------------------------------------- NET OPERATING INCOME 1,322,118 9% 1.7% -3.8% 8.2% -------------------------------- --------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (37,033) 23.0% 48.9% -2.6% Depreciation & Amortization (373,850) 46.4% 122.0% 4.1% -------------------------------- --------------------------------------------------- TOTAL OTHER INCOME (EXP.) (410,883) 35.2% 82.6% 0.9% -------------------------------- --------------------------------------------------- Gain (losses) on sales of int. in R.E - N/A N/A N/A -------------------------------- --------------------------------------------------- Income before Minority Int. 911,235 -31.9% -78.4% 17.5% -------------------------------- --------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - -------------------------------- --------------------------------------------------- NET INCOME $ 911,235 18% -31.9% -78.4% 17.5% -------------------------------- ---------------------------------------------------
Q4 02 (3 months ended 12/31/02) -------------- --------------------------------------------------------------------- % Change Combined Enclosed Mall Power Center Strip Center TOTAL -------------- --------------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents 5.2% $ 14,458,295 $ 6,686,810 $ 6,495,768 Straight-Lining of Base Rents -127.0% 207,608 78,855 111,556 Percentage Rents N/A 766,195 663,939 103,232 Lease Termination N/A (92,329) - (92,329) Exp. Recoveries and Other Income -9.1% 4,382,618 2,847,609 1,109,883 -------------- --------------------------------------------------------------------- TOTAL REVENUES 0.4% 19,722,387 10,277,213 52% 7,728,110 -------------- --------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance -9.1% 3,713,390 2,736,519 704,673 Real Estate Taxes 28.9% 1,480,971 604,953 755,993 Minority Interest in Properties N/A - - - -------------- --------------------------------------------------------------------- Total Operating Expenses 2.6% 5,194,361 3,341,472 64% 1,460,666 -------------- --------------------------------------------------------------------- NET OPERATING INCOME -0.2% 14,528,026 6,935,741 48% 6,267,444 -------------- --------------------------------------------------------------------- OTHER INCOME (EXP.) Interest Expense -2.7% (3,479,548) (1,728,857) (1,712,619) Depreciation & Amortization -24.9% (3,791,160) (1,483,247) (1,810,139) -------------- --------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) -23.3% (7,270,708) (3,212,104) (3,522,758) Gain (losses) on sales of int. in -------------- --------------------------------------------------------------------- R.E N/A - - - -------------- --------------------------------------------------------------------- Income before Minority Int. 15.5% 7,257,318 3,723,637 2,744,686 -------------- --------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - -------------- --------------------------------------------------------------------- NET INCOME 15.5% $ 7,257,318 $ 3,723,637 51% $ 2,744,686 ============== ===================================================================== Q4 02 (3 months ended 12/31/02) -------------------------------------------------- Power Center Strip Center -------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 1,275,717 Straight-Lining of Base Rents 17,197 Percentage Rents (976) Lease Termination - Exp. Recoveries and Other Income 425,126 -------------------------------------------------- TOTAL REVENUES 39% 1,717,064 9% -------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 272,198 Real Estate Taxes 120,025 Minority Interest in Properties - -------------------------------------------------- Total Operating Expenses 28% 392,223 8% -------------------------------------------------- NET OPERATING INCOME 43% 1,324,841 9% -------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (38,072) Depreciation & Amortization (497,774) -------------------------------------------------- TOTAL OTHER INCOME (EXP.) (535,846) -------------------------------------------------- Gain (losses) on sales of int. in R.E - -------------------------------------------------- Income before Minority Int. 788,995 -------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - -------------------------------------------------- NET INCOME 38% $ 788,995 11% ==================================================
(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 38 to 43. PAGE 13 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] RETAIL INCOME STATEMENT (1) YEARLY COMPARISON (Property Status)
CY 2003 (12 months ended 12/31/03) ------------------------------------------------------------------------- Combined TOTAL Enclosed Mall Power Center Strip Center R.E. OPERATING REVENUES Base Rents $ 136,351,896 $ 104,094,364 $ 26,189,828 $ 6,067,704 Straight-Lining of Base Rents 2,805,547 2,039,421 644,281 121,845 Percentage Rents 4,765,061 4,479,817 283,594 1,650 Lease Termination and Other Income 1,041,180 778,680 262,500 - Exp. Recoveries and Other Income 64,537,689 57,478,776 5,134,936 1,923,977 -------------- -------------- -------------- -------------- TOTAL REVENUES 209,501,373 168,871,058 81% 32,515,139 16% 8,115,176 4% -------------- -------------- -------------- -------------- R.E. OPERATING EXPENSES Operating and Maintenance 55,923,463 51,224,856 3,367,908 1,330,699 Real Estate Taxes 18,957,900 15,189,118 2,982,280 786,502 Minority Interest in Properties 901,518 901,518 - - -------------- -------------- -------------- -------------- Total Operating Expenses 75,782,881 67,315,492 89% 6,350,188 8% 2,117,201 3% -------------- -------------- -------------- -------------- NET OPERATING INCOME 133,718,492 101,555,566 76% 26,164,951 20% 5,997,975 4% -------------- -------------- -------------- -------------- OTHER INCOME (EXP.) Interest Expense (39,240,910) (32,356,067) (6,735,066) (149,777) Depreciation & Amortization (42,490,065) (33,169,577) (7,609,792) (1,710,696) -------------- -------------- -------------- -------------- TOTAL OTHER INCOME (EXP.) (81,730,975) (65,525,644) (14,344,858) (1,860,473) -------------- -------------- -------------- -------------- Gains(losses) on sales of int. in R.E. 1,111,692 - - 1,111,692 -------------- -------------- -------------- -------------- Income before Minority Int. 53,099,209 36,029,922 11,820,093 5,249,194 -------------- -------------- -------------- -------------- 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 $53,099,209 $36,029,922 68% $ 11,820,093 22% $ 5,249,194 10% -------------- -------------- -------------- -------------- % Change % Change % Change % Change TOTAL Enclosed Mall Power Center Strip Center --------------- --------------- --------------- --------------- R.E. OPERATING REVENUES Base Rents 93.1% 161.4% 2.8% 14.3% Straight-Lining of Base Rents 169.3% 251.2% 46.7% 457.6% Percentage Rents 89.1% 102.8% 0.9% N/A Lease Termination and Other Income N/A N/A N/A N/A Exp. Recoveries and Other Income 154.4% 192.8% 19.6% 33.1% --------------- --------------- --------------- --------------- TOTAL REVENUES 108.7% 170.6% 4.3% 19.3% --------------- --------------- --------------- --------------- R.E. OPERATING EXPENSES Operating and Maintenance 164.1% 197.7% 23.8% 6.6% Real Estate Taxes 157.6% 276.0% 12.8% 16.3% Minority Interest in Properties N/A N/A N/A N/A --------------- --------------- --------------- --------------- Total Operating Expenses 165.6% 216.8% 18.4% 10.0% --------------- --------------- --------------- --------------- NET OPERATING INCOME 86.1% 146.8% 1.3% 22.9% --------------- --------------- --------------- --------------- OTHER INCOME (EXP.) Interest Expense 42.5% 123.9% -47.2% -53.4% Depreciation & Amortization 117.9% 214.7% 3.4% 7.0% --------------- --------------- --------------- --------------- TOTAL OTHER INCOME (EXP.) 73.7% 162.1% -28.7% -3.1% --------------- --------------- --------------- --------------- Gains(losses) on sales of int. in R.E. N/A N/A N/A N/A --------------- --------------- --------------- --------------- Income before Minority Int. 83.7% 122.9% 107.6% -25.5% --------------- --------------- --------------- --------------- 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 82.8% 122.9% 107.6% -27.1% --------------- --------------- --------------- ---------------
CY 2002 (12 months ended 12/31/02) ------------------------------------------------------------------------- Combined TOTAL Enclosed Mall Power Center Strip Center R.E. OPERATING REVENUES Base Rents $ 70,607,350 $ 39,823,123 $ 25,476,799 $ 5,307,428 Straight-Lining of Base Rents 1,041,694 580,684 439,157 21,853 Percentage Rents 2,519,565 2,208,613 281,016 29,936 Lease Termination and Other Income N/A 851,434 156,263 695,171 Exp. Recoveries and Other Income 25,373,374 19,633,919 4,294,392 1,445,063 ------------- ------------- ------------- ------------- TOTAL REVENUES 100,393,417 62,402,602 62% 31,186,535 31% 6,804,280 7% ------------- ------------- ------------- ------------- R.E. OPERATING EXPENSES Operating and Maintenance 21,174,597 17,206,532 2,719,491 1,248,574 Real Estate Taxes 7,359,346 4,039,466 2,643,487 676,393 Minority Interest in Properties - - - - ------------- ------------- ------------- ------------- Total Operating Expenses 28,533,943 21,245,998 74% 5,362,978 19% 1,924,967 7% ------------- ------------- ------------- ------------- NET OPERATING INCOME 71,859,474 41,156,604 57% 25,823,557 36% 4,879,313 7% ------------- ------------- ------------- ------------- OTHER INCOME (EXP.) Interest Expense (27,541,955) (14,454,016) (12,766,796) (321,143) Depreciation & Amortization (19,502,954) (10,541,583) (7,362,199) (1,599,172) ------------- ------------- ------------- ------------- TOTAL OTHER INCOME (EXP.) (47,044,909) (24,995,599) (20,128,995) (1,920,315) ------------- ------------- ------------- ------------- Gains(losses) on sales of int. in R.E. 4,085,164 - - 4,085,164 ------------- ------------- ------------- ------------- Income before Minority Int. 28,899,729 16,161,005 5,694,562 7,044,162 ------------- ------------- ------------- ------------- Discontinued Operations: Income from Disposed Real Estate 151,875 - - 151,875 ------------- ------------- ------------- ------------- Gain (losses) on Disposition of Discontinued Operations TOTAL DISCONTINUED OPERATIONS 151,875 - - 151,875 ------------- ------------- ------------- ------------- Extraordinary item (Loss on early extinguishment of debt) - - - - ------------- ------------- ------------- ------------- NET INCOME $ 29,051,604 $16,161,005 56% $ 5,694,562 20% $ 7,196,037 25% ------------- ------------- ------------- -------------
SAME STORE COMPARISON
CY 2003 (12 months ended 12/31/03) ------------------------------------------------------------------------- Combined TOTAL Enclosed Mall Power Center Strip Center R.E. OPERATING REVENUES Base Rents $ 46,751,966 $ 16,317,723 $ 26,189,828 $ 4,244,415 Straight-Lining of Base Rents 688,338 65,217 644,281 (21,160) Percentage Rents 1,209,707 926,113 283,594 - Lease Termination 262,500 - 262,500 - Exp. Recoveries and Other Income 14,682,875 8,218,172 5,134,936 1,329,767 ------------- ------------- ------------- ------------- TOTAL REVENUES 63,595,386 25,527,225 40% 32,515,139 51% 5,553,022 9% ------------- ------------- ------------- ------------- R.E. OPERATING EXPENSES Operating and Maintenance 12,031,729 7,698,292 3,367,908 965,529 Real Estate Taxes 5,103,101 1,595,927 2,982,280 524,894 Minority Interest in Properties - - - - ------------- ------------- ------------- ------------- Total Operating Expenses 17,134,830 9,294,219 54% 6,350,188 37% 1,490,423 9% ------------- ------------- ------------- ------------- NET OPERATING INCOME 46,460,556 16,233,006 35% 26,164,951 56% 4,062,599 9% ------------- ------------- ------------- ------------- OTHER INCOME (EXP.) Interest Expense (12,169,313) (5,284,470) (6,735,066) (149,777) Depreciation & Amortization (12,432,023) (3,782,396) (7,609,792) (1,039,835) ------------- ------------- ------------- ------------- TOTAL OTHER INCOME (EXP.) (24,601,336) (9,066,866) (14,344,858) (1,189,612) ------------- ------------- ------------- ------------- Gain (losses) on sales of int. in R.E - - - - Income before Minority Int. 21,859,220 7,166,140 11,820,093 2,872,987 ------------- ------------- ------------- ------------- Extraordinary item (Loss on early extinguishment of debt) - - - NET INCOME $ 21,859,220 $ 7,166,140 33% $ 11,820,093 54% $ 2,872,987 13% ------------- ------------- ------------- -------------
% Change % Change % Change % Change TOTAL Enclosed Mall Power Center Strip Center --------------- --------------- --------------- --------------- R.E. OPERATING REVENUES Base Rents 2.2% 0.7% 2.8% 4.3% Straight-Lining of Base Rents 0.5% -65.9% 46.7% -139.0% Percentage Rents -11.3% -14.2% 0.9% N/A Lease Termination N/A N/A N/A N/A Exp. Recoveries and Other Income 10.9% 6.5% 19.6% 7.7% --------------- --------------- --------------- --------------- TOTAL REVENUES 3.0% 1.2% 4.3% 3.5% --------------- --------------- --------------- --------------- R.E. OPERATING EXPENSES Operating and Maintenance 12.9% 9.9% 23.8% 3.1% Real Estate Taxes 9.3% 4.1% 12.8% 6.7% Minority Interest in Properties N/A N/A N/A N/A --------------- --------------- --------------- --------------- Total Operating Expenses 11.8% 8.9% 18.4% 4.3% --------------- --------------- --------------- --------------- NET OPERATING INCOME 0.1% -2.7% 1.3% 3.3% --------------- --------------- --------------- --------------- OTHER INCOME (EXP.) Interest Expense 18.0% 59.0% -1.5% -2.7% Depreciation & Amortization 1.7% -1.5% 3.4% 1.3% --------------- --------------- --------------- --------------- TOTAL OTHER INCOME (EXP.) 9.1% 26.6% 1.0% 0.8% --------------- --------------- --------------- --------------- Gain (losses) on sales of int. in R.E N/A N/A N/A N/A Income before Minority Int. -8.6% -24.7% 1.7% 3.1% --------------- --------------- --------------- --------------- Extraordinary item (Loss on early extinguishment of debt) - - NET INCOME -8.6% -24.7% 1.7% 3.1% --------------- --------------- --------------- --------------- CY 2002 (12 months ended 12/31/02) ------------------------------------------------------------------------- Combined TOTAL Enclosed Mall Power Center Strip Center R.E. OPERATING REVENUES Base Rents $ 45,757,398 $ 16,210,308 $ 25,476,799 $ 4,070,291 Straight-Lining of Base Rents 684,788 191,331 439,157 54,300 Percentage Rents 1,363,550 1,079,291 281,016 3,243 Lease Termination 712,452 17,281 695,171 - Exp. Recoveries and Other Income 13,245,563 7,716,349 4,294,392 1,234,822 ------------- ------------- ------------- ------------- TOTAL REVENUES 61,763,751 25,214,560 41% 31,186,535 50% 5,362,656 9% ------------- ------------- ------------- ------------- R.E. OPERATING EXPENSES Operating and Maintenance 10,661,145 7,005,024 2,719,491 936,630 Real Estate Taxes 4,668,099 1,532,462 2,643,487 492,150 Minority Interest in Properties - - - - ------------- ------------- ------------- ------------- Total Operating Expenses 15,329,244 8,537,486 56% 5,362,978 35% 1,428,780 9% ------------- ------------- ------------- ------------- NET OPERATING INCOME 46,434,507 16,677,074 36% 25,823,557 56% 3,933,876 8% ------------- ------------- ------------- ------------- OTHER INCOME (EXP.) Interest Expense (10,312,456) (3,323,173) (6,835,413) (153,870) Depreciation & Amortization (12,229,512) (3,840,558) (7,362,199) (1,026,755) ------------- ------------- ------------- ------------- TOTAL OTHER INCOME (EXP.) (22,541,968) (7,163,731) (14,197,612) (1,180,625) ------------- ------------- ------------- ------------- Gain (losses) on sales of int. in R.E 32,500 - - 32,500 Income before Minority Int. 23,925,039 9,513,343 11,625,945 2,785,751 ------------- ------------- ------------- ------------- Extraordinary item (Loss on early extinguishment of debt) - - NET INCOME $ 23,925,039 $ 9,513,343 40% $ 11,625,945 49% $ 2,785,751 12% ------------- ------------- ------------- -------------
(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 38 to 43. PAGE 14 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED]
CY 12/31/03 FUNDS FROM OPERATIONS (1) Q4:12/31/03 % Change Q4:12/31/02 (12 months) ----------------- ----------------- ----------------- ----------------- Net Income $ 11,501,879 56.9% $ 7,331,255 $ 196,040,151 Dividends on preferred shares (1,533,000) - (1,533,000) ----------------- ----------------- ----------------- ----------------- Net Income allocable to common shares $ 9,968,879 36.0% $ 7,331,255 $ 194,507,151 Minority Interest in operating partnership-operations 1,198,594 51.9% 789,137 3,298,010 Minority Interest in operating partnership-discontinued operations 580,392 N/A (6,605) 18,848,730 (Gain) loss on sales of interests in real estate (4,457,176) N/A - (16,199,310) Gain (losses) on disposition of discontinued operations (194,441) N/A - (178,121,005) Depreciation & amortization: (2) Wholly owned and consolidated partnerships 17,852,055 401.0% 3,563,415 37,356,061 Unconsolidated partnerships and joint ventures 1,243,672 -23.7% 1,630,536 5,071,443 Discontinued operations - N/A 2,244,076 2,308,553 Financing repayment fee ----------------- ----------------- ----------------- ----------------- FFO $ 26,191,975 68.4% $ 15,551,814 $ 67,069,633 ----------------- ----------------- ----------------- ----------------- Weighted Average Shares and O.P. Units Outstanding 31,744,396 74.3% 18,209,542 22,693,026 ----------------- ----------------- ----------------- ----------------- Net Income per Share $ 0.35 -21.5% $ 0.45 $ 9.54 ----------------- ----------------- ----------------- ----------------- FFO per Share $ 0.83 -3.4% $ 0.85 $ 2.96 ----------------- ----------------- ----------------- ----------------- FUNDS AVAILABLE FOR DISTRIBUTION FFO $ 26,191,975 68.4% $ 15,551,814 $ 67,069,633 Adjustments: Straight-lining of base rents (1,055,305) 254.3% (297,854) (2,805,547) Recurring capital expenditures (442,327) -30.6% (637,090) (1,931,941) Amortization of debt premium (2,933,065) N/A - (5,940,175) ----------------- ----------------- ----------------- ----------------- FAD $ 21,761,278 48.9% $ 14,616,870 $ 56,391,970 ----------------- ----------------- ----------------- ----------------- Weighted Average Shares and O.P. Units Outstanding 31,744,396 74.3% 18,209,542 22,693,026 ----------------- ----------------- ----------------- ----------------- FAD per Share $ 0.69 -14.6% $ 0.80 $ 2.48 ----------------- ----------------- ----------------- ----------------- PAYOUT RATIOS ----------------- ----------------- ----------------- ----------------- Dividend per Common Share $ 0.54 5.9% $ 0.51 $ 2.07 ----------------- ----------------- ----------------- ----------------- Payout Ratio of Net Income 154.29% 39.8% 114.44% 21.70% ----------------- ----------------- ----------------- ----------------- Payout Ratio of FFO 65.45% 5.7% 59.72% 70.04% ----------------- ----------------- ----------------- ----------------- Payout Ratio of FAD 78.77% 15.2% 63.54% 83.30% ----------------- ----------------- ----------------- -----------------
CY 12/31/02 FUNDS FROM OPERATIONS (1) % Change (12 months) ----------------- ----------------- Net Income 727.9% $ 23,677,976 Dividends on preferred shares - Net Income allocable to common shares 721.5% $ 23,677,976 Minority Interest in operating partnership-operations 161.2% 1,262,556 Minority Interest in operating partnership-discontinued operations N/A 1,352,412 (Gain) loss on sales of interests in real estate N/A - Gain (losses) on disposition of discontinued operations N/A (4,085,164) Depreciation & amortization: (2) Wholly owned and consolidated partnerships 193.9% 12,708,936 Unconsolidated partnerships and joint ventures -31.9% 7,446,295 Discontinued operations N/A 8,726,812 Financing repayment fee 77,436 ----------------- ----------------- FFO 31.1% $ 51,167,259 ----------------- ----------------- Weighted Average Shares and O.P. Units Outstanding 26.3% 17,967,106 ----------------- ----------------- Net Income per Share 551.2% $ 1.47 ----------------- ----------------- FFO per Share 3.8% $ 2.85 ----------------- ----------------- FUNDS AVAILABLE FOR DISTRIBUTION FFO 31.1% $ 51,167,259 Adjustments: Straight-lining of base rents 169.3% (1,041,694) Recurring capital expenditures -33.5% (2,903,637) Amortization of debt premium N/A - ----------------- ----------------- FAD 19.4% $ 47,221,928 ----------------- ----------------- Weighted Average Shares and O.P. Units Outstanding 26.3% 17,967,106 ----------------- ----------------- FAD per Share -5.5% $ 2.63 ----------------- ----------------- PAYOUT RATIOS ----------------- ----------------- Dividend per Common Share 1.5% $ 2.04 ----------------- ----------------- Payout Ratio of Net Income -117.6% 139.25% ----------------- ----------------- Payout Ratio of FFO -1.6% 71.63% ----------------- ----------------- Payout Ratio of FAD 5.7% 77.62% ----------------- -----------------
(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. PAGE 15 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] KEY RATIOS
Q4: 12/31/2003 Q4: 12/31/2002 ------------------------- ------------------------- Coverage Ratio Interest Coverage Ratio (EBITDA/ Interest Expense) 2.70 2.42 ------------------------- ------------------------- Leverage Ratios (1) Debt / Total Market Capitalization 50.3% 56.3% ------------------------- ------------------------- Operating Ratios NOI/Real Estate Revenues 64.1% 66.1% ------------------------- ------------------------- Return on Investment Ratios (1) Total FFO/Equity Market Capitalization 1.7% 3.2% FFO multiple (Closing share price / Annualized FFO per share for quarter) 11.00 7.61 NOI/Total Market Capitalization at Period End 1.9% 2.6% NOI/Investment in Real Estate at Period End 2.3% 3.0% ------------------------- ------------------------- Payout Ratios FFO Payout Ratio (Dividend/FFO) per Share 65.4% 59.7% FAD Payout Ratio (Dividend/FAD) per Share 78.8% 63.5% ------------------------- -------------------------
(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: Reconcilation to GAAP is on pages 38 to 43. PAGE 16 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] DEBT SCHEDULE of WHOLLY OWNED PROPERTIES
PREIT's Total PREIT's PREIT's PREIT's Ownership Investment to Investment to Accumulated Depreciated Property Name Interest Date Date (1) Depreciation Costs ----------------------------------------------------------------------------------------------------------------------------- Retail Properties Beaver Valley Mall 100% $ 54,578,235 $ 54,578,235 $ 2,437,789 $ 52,140,446 Bradley Square 100% 11,213,758 11,213,758 - 11,213,758 Capital City (2) 89% 77,579,833 77,579,833 258,708 77,321,125 Chambersburg Mall (2)(3) 89% 36,181,955 36,181,955 127,892 36,054,063 Cherry Hill Mall (4)(5)(6)(9) 73% 203,720,555 185,128,752 2,912,174 182,216,578 Christiana Power I 100% 35,077,062 35,077,062 4,457,743 30,619,319 Creekview 100% 18,931,825 18,931,825 1,929,230 17,002,595 Crest Plaza Shopping Center 100% 16,255,843 16,255,843 988,439 15,267,404 Crossroads Mall 100% 31,939,814 31,939,814 123,745 31,816,069 Dartmouth Mall 100% 51,169,619 51,169,619 9,159,934 42,009,685 Echelon Mall (9) 100% 16,501,342 16,501,342 301,797 16,199,545 Exton Square Mall (6)(9) 100% 137,036,562 137,036,562 2,440,321 134,596,241 Festival at Exton 100% 18,983,896 18,983,896 2,141,362 16,842,534 Francis Scott Key Mall (3) 100% 65,558,196 65,558,196 221,580 65,336,616 Gallery at Market East (9) 100% 48,283,008 48,283,008 811,514 47,471,494 Jacksonville Mall 100% 57,605,971 57,605,971 175,241 57,430,730 Logan Valley Mall (2)(3) 89% 80,600,905 80,600,905 322,793 80,278,112 Lycoming Mall (2)(3) 89% 54,917,377 54,917,377 109,311 54,808,066 Magnolia Mall 100% 57,226,327 57,226,327 7,500,372 49,725,955 Martinsburg Mall (3) 100% 18,535,712 18,535,712 - 18,535,712 Moorestown Mall (9) 100% 74,795,733 74,795,733 1,399,663 73,396,070 Mount Berry Square 100% 22,467,229 22,467,229 - 22,467,229 New River Valley Mall (3) 100% 32,149,764 32,149,764 116,130 32,033,634 Nittany Mall (2)(3) 89% 44,641,709 44,641,709 158,119 44,483,590 North Hanover Mall (2)(3) 89% 26,930,843 26,930,843 100,336 26,830,507 Northeast Tower Center 100% 29,248,410 29,248,410 2,650,581 26,597,829 Northeast Tower Center-Home Depot 100% 13,578,891 13,578,891 1,289,995 12,288,896 Palmer Park Mall 100% 37,963,335 37,963,335 5,731,352 32,231,983 Patrick Henry Mall (3) 100% 96,649,678 96,649,678 279,046 96,370,632 Paxton Towne Centre 100% 53,408,117 53,408,117 4,315,182 49,092,935 Phillipsburg Mall (3) 100% 48,535,563 48,535,563 165,027 48,370,536 Plymouth Meeting Mall (9) 100% 78,198,819 78,198,819 1,140,134 77,058,685 Prince Georges Plaza (6) 100% 83,301,490 83,301,490 10,530,524 72,770,966 Schuylkill Mall (2) 89% 15,038,157 15,038,157 - 15,038,157 Shenango Valley Mall (2) 89% 15,835,339 15,835,339 - 15,835,339 South Blanding Village 100% 9,502,950 9,502,950 3,190,825 6,312,125 South Mall (2)(3) 89% 30,251,157 30,251,157 108,674 30,142,483 The Commons at Magnolia 100% 9,884,213 9,884,213 931,450 8,952,763 Uniontown Mall (2)(3) 89% 28,170,896 28,170,896 118,409 28,052,487 Valley Mall 100% 81,308,933 81,308,933 285,406 81,023,527 Valley View Mall 100% 50,181,220 50,181,220 175,223 50,005,997 Viewmont Mall (2)(3) 89% 70,531,123 70,531,123 232,454 70,298,669 Washington Crown Center (2) 89% 49,137,405 49,137,405 171,678 48,965,727 West Manchester Mall (2)(3) 89% 35,797,275 35,797,275 - 35,797,275 Willow Grove Park (6) 100% 166,851,686 166,851,686 6,427,698 160,423,988 Wiregrass Mall (8) 100% 39,775,387 39,775,387 154,310 39,621,077 Wyoming Mall (2)(3) 89% 85,543,410 85,543,410 247,334 85,296,076 ----------------------------------------------------------------------------------------------------------------------------- Sub-Total Retail Properties $ 2,421,576,527 $2,402,984,724 $ 76,339,495 $ 2,326,645,229 ============================================================================================================================= Industrial Properties "ARA Services, Allentown, PA 100% $ 84,610 $ 84,610 $ 81,610 $ 3,000 "ARA Services, Pennsauken, NJ 100% 210,473 210,473 168,433 42,040 Interstate Container Corporation 100% 1,802,271 1,802,271 1,479,760 322,511 Sears Roebuck & Co. 100% 406,857 406,857 346,968 59,889 ----------------------------------------------------------------------------------------------------------------------------- Sub-Total Industrial and Land Properties $ 2,504,211 $ 2,504,211 $ 2,076,771 $ 427,440 ----------------------------------------------------------------------------------------------------------------------------- TOTAL for WHOLLY OWNED PROPERTIES $ 2,424,080,738 $2,405,488,935 $ 78,416,266 $ 2,327,072,669 ----------------------------------------------------------------------------------------------------------------------------- TOTAL for PARTNERSHIPS and JOINT VENTURES $ 270,845,771 $ 134,613,285 $ 31,652,085 $ 102,961,200 ----------------------------------------------------------------------------------------------------------------------------- CORPORATE ----------------------------------------------------------------------------------------------------------------------------- TOTAL for WHOLLY OWNED and JV PROPERTIES $ 2,694,926,509 $2,540,102,220 $ 110,068,351 $ 2,430,033,869 =============================================================================================================================
PREIT's Share of O/S Mortgage Debt PREIT's Share Current Annual and Mortgage PREIT's Share of Mortgage Mortgages Mortgage Debt Property Name Debt Premuim of Mortgage Debt Premium Interest Rate Service ----------------------------------------------------------------------------------------------------------------------------- Retail Properties Beaver Valley Mall $ 47,316,181 $ 47,316,181 $ - 7.36% $ 3,972,402 Bradley Square - - - 0.00% Capital City (2) 60,281,074 53,250,000 7,031,074 7.61% 4,602,529 Chambersburg Mall (2)(3) 21,019,161 19,058,962 1,960,199 7.43% 1,762,666 Cherry Hill Mall (4)(5)(6)(9) 79,401,313 72,805,434 6,595,879 10.60% 9,132,792 59,790,866 59,790,866 - 5.00% 2,789,582 Christiana Power I - - - 0.00% - Creekview - - - 0.00% - Crest Plaza Shopping Center - - - 0.00% - Crossroads Mall 14,466,479 13,573,290 893,189 7.39% 1,191,103 Dartmouth Mall 69,514,500 69,514,500 - 4.95% 4,483,668 Echelon Mall (9) - - - 0.00% Exton Square Mall (6)(9) 107,904,587 99,735,643 8,168,944 6.95% 8,102,242 Festival at Exton - - - 0.00% - Francis Scott Key Mall (3) 36,783,532 33,353,184 3,430,348 7.43% 3,084,665 Gallery at Market East (9) - - - 0.00% Jacksonville Mall - - - 0.00% Logan Valley Mall (2)(3) 59,904,609 54,318,042 5,586,567 7.43% 5,023,597 Lycoming Mall (2)(3) 36,783,532 33,353,184 3,430,348 7.43% 3,084,664 Magnolia Mall 20,804,348 20,804,348 - 8.20% 2,597,726 Martinsburg Mall (3) 18,391,766 16,676,592 1,715,174 7.43% 1,542,332 Moorestown Mall (9) 63,733,399 63,733,399 - 4.95% 4,115,367 Mount Berry Square - - - 0.00% New River Valley Mall (3) 17,866,287 16,200,118 1,666,169 7.43% 1,498,266 Nittany Mall (2)(3) 31,528,742 28,588,444 2,940,298 7.43% 2,643,998 North Hanover Mall (2)(3) 21,019,161 19,058,962 1,960,199 7.43% 1,762,666 Northeast Tower Center - - - 0.00% - Northeast Tower Center-Home Depot 12,500,000 12,500,000 - 7.40% 925,000 Palmer Park Mall 18,213,653 18,213,653 - 6.77% 1,661,220 Patrick Henry Mall (3) 53,073,382 48,123,880 4,949,502 7.43% 4,450,730 Paxton Towne Centre - - - 0.00% - Phillipsburg Mall (3) 31,528,742 28,588,444 2,940,298 7.43% 2,643,998 Plymouth Meeting Mall (9) - - - 0.00% Prince Georges Plaza (6) 43,864,194 41,805,392 2,058,802 8.70% 4,134,937 Schuylkill Mall (2) 18,732,516 18,732,516 - 7.25% 3,315,300 Shenango Valley Mall (2) - - - 0.00% South Blanding Village - - - 0.00% - South Mall (2)(3) 15,764,370 14,294,222 1,470,148 7.43% 1,321,999 The Commons at Magnolia - - - 0.00% - Uniontown Mall (2)(3) 25,222,993 22,870,755 2,352,238 7.43% 2,115,199 Valley Mall - - - 0.00% Valley View Mall 37,701,026 37,000,000 701,026 6.15% 2,275,500 Viewmont Mall (2)(3) 31,528,742 28,588,444 2,940,298 7.43% 2,643,998 Washington Crown Center (2) - - - 0.00% West Manchester Mall (2)(3) 28,375,868 25,729,599 2,646,269 7.43% 2,379,598 Willow Grove Park (6) 113,761,247 109,296,539 4,464,708 8.39% 10,046,933 Wiregrass Mall (8) 30,000,000 30,000,000 - 3.12% 967,200 Wyoming Mall (2)(3) 59,904,609 54,318,043 5,586,566 7.43% 5,023,597 ----------------------------------------------------------------------------------------------------------------------------- Sub-Total Retail Properties $ 1,286,680,879 $ 1,211,192,636 $ 75,488,243 7.18% $ 105,295,475 ============================================================================================================================= Industrial Properties "ARA Services, Allentown, PA $ - $ - 0.00% $ - "ARA Services, Pennsauken, NJ - - 0.00% - Interstate Container Corporation - - 0.00% - Sears Roebuck & Co. - - 0.00% - ----------------------------------------------------------------------------------------------------------------------------- Sub-Total Industrial and Land Properties $ - $ - 0.00% $ - ----------------------------------------------------------------------------------------------------------------------------- TOTAL for WHOLLY OWNED PROPERTIES $ 1,286,680,879 $ 1,211,192,636 $ 75,488,243 7.18% $ 105,295,475 ----------------------------------------------------------------------------------------------------------------------------- TOTAL for PARTNERSHIPS and JOINT VENTURES $ 109,581,659 $ 109,581,659 $ - 7.47% $ 10,205,588 ----------------------------------------------------------------------------------------------------------------------------- CORPORATE $ - ----------------------------------------------------------------------------------------------------------------------------- TOTAL for WHOLLY OWNED and JV PROPERTIES $ 1,396,262,538 $ 1,320,774,295 $ 75,488,243 7.20% $ 115,501,063 =============================================================================================================================
Mortgage Balance at Date of Property Name Maturity Maturity Notes ---------------------------------------------------------------------------------------- Retail Properties Beaver Valley Mall $ 42,265,601 2012 Bradley Square Capital City (2) 47,215,150 2012 Chambersburg Mall (2)(3) 17,199,298 2008 Cherry Hill Mall (4)(5)(6)(9) 70,237,549 2005 58,148,407 2005 Christiana Power I - Creekview - Crest Plaza Shopping Center - Crossroads Mall 12,646,534 2008 Dartmouth Mall 57,594,279 2013 Echelon Mall (9) Exton Square Mall (6)(9) 93,034,212 2008 Festival at Exton - Francis Scott Key Mall (3) 30,098,771 2008 Gallery at Market East (9) Jacksonville Mall Logan Valley Mall (2)(3) 49,017,998 2008 Lycoming Mall (2)(3) 30,098,771 2008 Magnolia Mall 17,782,882 2007 Martinsburg Mall (3) 15,049,385 2008 Moorestown Mall (9) 52,863,321 2013 Mount Berry Square New River Valley Mall (3) 14,619,403 2008 Nittany Mall (2)(3) 25,798,946 2008 North Hanover Mall (2)(3) 17,199,298 2008 Northeast Tower Center - Northeast Tower Center-Home Depot 12,500,000 2005 Palmer Park Mall 15,674,394 2009 Patrick Henry Mall (3) 43,428,226 2008 Paxton Towne Centre - Phillipsburg Mall (3) 25,798,946 2008 Plymouth Meeting Mall (9) Prince Georges Plaza (6) 39,986,536 2007 Schuylkill Mall (2) 7,442,925 2008 Shenango Valley Mall (2) South Blanding Village - South Mall (2)(3) 12,899,473 2008 The Commons at Magnolia - Uniontown Mall (2)(3) 20,639,157 2008 Valley Mall Valley View Mall 34,589,149 2009 Viewmont Mall (2)(3) 25,798,946 2008 Washington Crown Center (2) West Manchester Mall (2)(3) 23,219,052 2008 Willow Grove Park (6) 107,307,726 2006 Wiregrass Mall (8) 30,000,000 2005 Wyoming Mall (2)(3) 49,017,998 2008 ---------------------------------------------------------------------------------------- Sub-Total Retail Properties $ 1,099,172,333 ======================================================================================== Industrial Properties "ARA Services, Allentown, PA $ - "ARA Services, Pennsauken, NJ - Interstate Container Corporation - Sears Roebuck & Co. - ---------------------------------------------------------------------------------------- Sub-Total Industrial and Land Properties $ - ---------------------------------------------------------------------------------------- TOTAL for WHOLLY OWNED PROPERTIES $ 1,099,172,333 ---------------------------------------------------------------------------------------- TOTAL for PARTNERSHIPS and JOINT VENTURES $ 93,753,089 ---------------------------------------------------------------------------------------- CORPORATE ---------------------------------------------------------------------------------------- TOTAL for WHOLLY OWNED and JV PROPERTIES $ 1,192,925,422 ========================================================================================
(1) Includes development and CIP costs. (2) PREIT has an 89% ownership interest and a 99% economic interest in these properties. These properties are consolidated for financial reporting purposes. (3) Mortgage Debt represents properties' allocated portion of the REMIC provided by General Electric Capital Corporation. (4) 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. (5) 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. (6) Development costs are included in the balance sheet under other assets. (7) Includes mark to market of debt. (8) Term does not include two 12 month extensions. (9) Investment and debt balances have been modified from those previously presented to reflect revised assumptions about the fair value of the assets and liabilities acquired, and to reflect additional costs associated with the acquisition of these properties. NOTE: Reconciliation to GAAP is on pages 38 to 43. PAGE 17 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] DEBT SCHEDULE of PARTNERSHIPS AND JOINT VENTURES
PREIT's Total PREIT's PREIT's PREIT's Ownership Investment to Investment to Accumulated Depreciated Property Name Interest Date Date (1) Depreciation Costs -------------- -------------- -------------- -------------- -------------- Retail Properties Court at Oxford Valley 50% $ 55,612,574 $ 27,806,287 $ 4,222,051 $ 23,584,236 Laurel Mall 40% 31,377,328 12,550,931 4,638,360 7,912,571 Lehigh Valley Mall 50% 29,735,754 14,867,877 9,385,967 5,481,910 Metroplex Shopping Center (Blue Route) 50% 82,432,626 41,216,313 3,619,371 37,596,942 Red Rose Commons 50% 20,395,288 10,197,644 1,369,747 8,827,897 Rio Mall 60% 8,219,542 4,931,725 2,372,269 2,559,456 Springfield Park I&II 50% 13,276,202 6,638,101 581,213 6,056,888 Whitehall Mall 50% 29,796,458 14,898,229 5,463,107 9,435,122 ---------------------------------------------------------------------------------------- Sub-Total Retail Properties $ 270,845,771 $ 133,107,107 $ 31,652,085 $ 101,455,022 ---------------------------------------------------------------------------------------- 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 $ 270,845,771 $ 134,613,285 $ 31,652,085 $ 102,961,200 ======================================================================================== PREIT's Share of O/S Mortgage Debt PREIT's Share Current Annual and Mortgage PREIT's Share of Mortgage Mortgages Mortgage Debt Property Name Debt Premuim of Mortgage Debt Premium Interest Rate Service -------------- -------------- -------------- -------------- -------------- Retail Properties Court at Oxford Valley $ 21,827,846 $ 21,827,846 $ - 8.02% $ 2,319,426 Laurel Mall 9,200,000 9,200,000 - 6.00% 661,904 Lehigh Valley Mall 23,676,622 23,676,622 - 7.90% 2,479,260 Metroplex Shopping Center (Blue Route) 32,132,630 32,132,630 - 7.25% 2,680,953 Red Rose Commons 13,820,806 13,820,806 - 7.66% 1,220,048 Rio Mall - - - 0.00% - Springfield Park I&II 1,849,574 1,849,574 - 7.79% 202,561 Whitehall Mall 7,074,181 7,074,181 - 6.77% 641,436 ---------------------------------------------------------------------------------------- Sub-Total Retail Properties $ 109,581,659 $ 109,581,659 $ - 7.47% $ 10,205,588 ---------------------------------------------------------------------------------------- Construction in Progress/ Development Pavilion at Market East - $ - 0.00% - ---------------------------------------------------------------------------------------- Sub-Total Properties Under Development $ - $ - $ - $ - $ - ---------------------------------------------------------------------------------------- TOTAL for PARTNERSHIPS and JOINT VENTURES $ 109,581,659 $ 109,581,659 $ - 7.47% $ 10,205,588 ======================================================================================== Mortgage Balance at Date of Property Name Maturity Maturity Notes -------------- -------------- -------------- Retail Properties Court at Oxford Valley $ 15,966,965 2011 Laurel Mall 7,819,521 2013 Lehigh Valley Mall 21,750,440 2006 Metroplex Shopping Center (Blue Route) 28,250,000 2011 Red Rose Commons 12,425,422 2009 Rio Mall - Springfield Park I&II 1,411,804 2010 Whitehall Mall 6,128,937 2008 --------------------------------------------------- Sub-Total Retail Properties $ 93,753,089 --------------------------------------------------- Construction in Progress/ Development Pavilion at Market East - Construction in Progress --------------------------------------------------- Sub-Total Properties Under Development $ - --------------------------------------------------- TOTAL for PARTNERSHIPS and JOINT VENTURES $ 93,753,089 ===================================================
(1) Includes development and CIP costs. NOTE: Reconciliation to GAAP is on pages 38 to 43. PAGE 18 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) DEBT ANALYSIS [PREIT AND PEI GRAPHICS OMITTED] Outstanding Debt
% of Total % of Total Fixed Rate Indebtedness Floating Rate Indebtedness Total Wholly Owned Mortgage Notes Payable $ 1,256,680,879 80.2% $ 30,000,000 1.9% $ 1,286,680,879 Revolving Line of Credit - 0.0% - 0.0% - Acquisition Term Loan & Unsecured Line of Credit 0.0% 0.0% - -------------- -------------- -------------- SUB-TOTAL 1,256,680,879 80.2% 30,000,000 1.9% 1,286,680,879 Partnerships and Joint Ventures (at PREIT's share) Mortgage Notes Payable 109,581,659 7.0% - 0.0% 109,581,659 Revolving Line of Credit - 0.0% - 0.0% - Construction loans payable - 0.0% - 0.0% - -------------- -------------- -------------- SUB-TOTAL 109,581,659 7.0% - 0.0% 109,581,659 Corporate Revolving Line of Credit 0.0% 170,000,000 10.9% 170,000,000 -------------- -------------- -------------- SUB-TOTAL 0.0% 170,000,000 10.9% 170,000,000 TOTAL OUTSTANDING DEBT 1,366,262,538 200,000,000 1,566,262,538 SWAP - - - -------------- -------------- -------------- TOTAL DEBT AFTER HEDGE $ 1,366,262,538 87.2% $ 200,000,000 12.8% $ 1,566,262,538 ============== ============== ============== % of Total Indebtedness Wholly Owned Mortgage Notes Payable 82.1% Revolving Line of Credit 0.0% Acquisition Term Loan & Unsecured Line of Credit 0.0% SUB-TOTAL 82.1% Partnerships and Joint Ventures (at PREIT's share) Mortgage Notes Payable 7.0% Revolving Line of Credit 0.0% [OUTSTANDING PRINCIPAL BALANCE CHART OMITTED] Construction loans payable 0.0% SUB-TOTAL 7.0% Corporate Revolving Line of Credit 10.9% SUB-TOTAL 10.9% TOTAL OUTSTANDING DEBT SWAP TOTAL DEBT AFTER HEDGE 100.0%
Weighted Average Interest Rates
Weighted Average Principal Balance Interest Rate Fixed Rate Debt $ 1,290,774,295 7.20% Mortgage Debt Premium $ 75,488,243 Floating Rate Debt 200,000,000 3.12% ---------------------------------------------- TOTAL $ 1,566,262,538 6.65% ==============================================
Interest Rate Hedging Instruments
Interest Rate Expiration Nominal Amount Limit Date Nominal Amount --------------------------------------------------- -------------- CAP None SWAP None Fixed Rate in Floating Rate Expiration Agreement in Agreement Date --------------------------------------------------- CAP
Mortgage/Construction Maturity Schedule (1)
Mortgage Cumulative Balance at % of Debt % of Debt Year Maturity Expiring Expiring ---------------------------------------------------- 2003 - 0.0% 0.0% 2004 - 0.0% 0.0% 2005 170,885,956 14.3% 14.3% 2006 129,058,166 10.8% 25.1% 2007 57,769,418 4.8% 30.0% 2008 519,136,276 43.5% 73.5% 2009 62,688,965 5.3% 78.8% 2010 1,411,804 0.1% 78.9% 2011 28,250,000 2.4% 81.2% 2012 - 0.0% 81.2% Thereafter 223,724,838 18.8% 100.0% --------------------------------- $1,192,925,422 100.0% ---------------------------------
(1) The average period to mortgage maturity is 5.25 years. NOTE: Reconciliation to GAAP is on pages 38 to 43. Average Debt Balance
Mortgage Debt (1) & Construction Line of Credit Loans & Bank Loans REMIC TOTAL --------------------------------------------------------------------- Beginning Balance 9/30/2003 $ 739,061,360 $ - $ - $ 739,061,452 Additional Markup of Debt on Cherry Hill and Exton Square 9/30/2003 2,036,907 2,036,907 Merger with Crown 11/20/2003 162,002,740 170,000,000 443,788,249 775,790,989 Markup of Debt 11/20/2003 8,728,333 46,413,068 55,141,401 Laurel Mall-Refinancing 11/20/2003 (8,450,317) (8,450,317) Laurel Mall-Refinancing 11/20/2003 9,200,000 9,200,000 Debt Amortization (2) 12/31/2003 (5,030,953) (1,486,849) (6,517,802) --------------------------------------------------------------------- Ending Balance 12/31/2003 $ 907,548,070 $ 170,000,000 $ 488,714,468 $ 1,566,262,538 Weighted Average Balance $ 817,519,039 $ 75,760,870 $ 218,459,283 $ 1,111,739,191 ---------------------------------------------------------------------
(1) Includes mark to market of debt. (2) Includes the amortization of debt premium. PAGE 19 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) DEBT RATIOS(1) [Graphic [Graphic Omitted] Omitted]
31/12/2003 31/12/2002 --------------------------------- Total Liabilities to Gross Asset Value Ratio of Total Liabilities(2) to Gross Asset Value(3) less than or equal to 0.65 to 1.00. Total Liabilities $ 1,579,303,539 $ 656,324,733 Gross Asset Value $ 3,076,545,743 $ 1,204,372,851 Ratio 51.33% 54.50% --------------------------------- EBITDA to Interest Expense Ratio of EBITDA(4) to Interest Expense(5) greater than or equal to 1.90 to 1.00. EBITDA $ 121,299,465 $ 97,213,497 Interest Expense $ 57,969,142 $ 43,668,158 Ratio 2.09 2.23 --------------------------------- Adjusted EBITDA to Fixed Charges Ratio of Adjusted EBITDA(6) to Fixed Charges(7) greater than or equal to 1.50 to 1.00. Adjusted EBITDA $ 118,387,620 $ 94,666,909 Fixed Charges $ 69,089,099 $ 51,180,102 Ratio 1.71 1.85 --------------------------------- Secured Indebtedness to Gross Asset Value Ratio of Secured Indebtedness(8) to Gross Asset Value(3) less than or equal to 0.60 to 1.00. Secured Indebtedness $ 1,320,774,295 Gross Asset Value $ 3,076,545,743 Ratio 42.93% N/A ---------------------------------
(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 November 20, 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) Adjusted NOI for all Properties of PREIT, its subsidiaries and unconsolidated affiliates (excluding adjusted NOI for development and major redevelopment Property) for the previous rolling four quarter period, capitalized at 9.00%, plus (ii) cash and cash equivalents plus (iii) all accounts receivable net of reserves plus (iv) book value of Propery upon which construction is in progress and land held for development plus (v) development costs plus (vi) adjusted NOI for major redevelopment Property for the recent fiscal quarter (excluding those acquired or disposed of during such quarter) multiplied by 4 and capitalized at 9.00% plus (vii) redevelopment and predevelopment costs plus (viii) the purchase price of Property purchased in the last 2 fiscal quarters (excluding Crown properties) plus (ix) greater of PREIT's (a) ownership share or (b) recourse share of book value of construction in progress of unconsolidated affiliates plus (x) purchase price of Property by PREIT and its subsidiaries subject to purchase obligations, purchase obligations, forward commitments and unfunded obligations. (4) 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. (5) Interest Expense defined as: All paid, accrued or capitalized interest expense excluding capitalized interest funded from construction loans plus the greater of (a) ownership share or (b) recourse share of all paid, accrued or capitalized interest expense of unconsolidated affliliates. (6) Adjusted EBITDA defined as: EBITDA plus ground rent payments minus the Reserve for Replacements for all Properties. (7) Fixed Charges defined as: Interest Expense plus regularly scheduled principal payments on Indebtedness other than any balloon, bullet or similar principal payment on any Indebtedness plus preferred dividends payments plus ground rent payments. (8) Secured Indebtedness defined as: (a) Aggregated principal amount of all Indebtedness that is secured by any Lien and (b) Indebtedness under a Guaranty of the Secured Indebtedness of another. PAGE 20 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] PORTFOLIO SUMMARY-RETAIL (Sorted by State)
Property Management Property Retail Properties (1) City State Subtype Status Status --------------------------------- -------------- -------------- -------------- -------------- -------------- Wiregrass Commons Dothan AL Enclosed Mall PREIT New Christiana Power Center I Newark DE Power Center PREIT Existing South Blanding Village Jacksonville FL Strip Center PREIT Existing Mount Berry Square Rome GA Enclosed Mall PREIT New Dartmouth Mall Dartmouth MA Enclosed Mall PREIT Existing Francis Scott Key (2) Frederick MD Enclosed Mall PREIT New Valley Mall Hagerstown MD Enclosed Mall PREIT New Prince Georges Plaza Hyattsville MD Enclosed Mall PREIT Redevelopment Jacksonville Mall Jacksonville NC Enclosed Mall PREIT New Cherry Hill Mall Cherry Hill NJ Enclosed Mall PREIT New Moorestown Mall Moorestown NJ Enclosed Mall PREIT New Phillipsburg Mall Phillipsburg NJ Enclosed Mall PREIT New Rio Mall Rio Grande NJ Strip Center Third Party Existing Echelon Mall Voorhees NJ Enclosed Mall PREIT New Crest Plaza Shopping Center Allentown PA Strip Center PREIT New Lehigh Valley Mall Allentown PA Enclosed Mall Third Party Existing South Mall (2) Allentown PA Enclosed Mall PREIT New Whitehall Mall Allentown PA Power Center Third Party Existing Logan Valley Mall (2) Altoona PA Enclosed Mall PREIT New Capital City Mall (2) Camp Hill PA Enclosed Mall PREIT New Ownership Year Built/ Years Since Owned GLA Retail Properties (1) Interest Date Acquired Last Renovated Renovation (anchors) --------------------------------- -------------- -------------- -------------- -------------- -------------- Wiregrass Commons 100% 2003 1986/1999 4 - Christiana Power Center I 100% 1998 1998 5 190,814 South Blanding Village 100% 1988/1990 1986 17 73,921 Mount Berry Square 100% 2003 1991 12 269,257 Dartmouth Mall 100% 1997 1971/2000 3 301,583 Francis Scott Key (2) 89% 2003 1978/1991 12 291,620 Valley Mall 100% 2003 1974/1999 4 294,348 Prince Georges Plaza 100% 1998 1959/1990 13 404,462 Jacksonville Mall 100% 2003 1981/1998 5 242,115 Cherry Hill Mall 73% 2003 1961/1990 13 - Moorestown Mall 100% 2003 1963/2000 3 408,356 Phillipsburg Mall 100% 2003 1989/2003 0 306,159 Rio Mall 60% 1973 1973/1999 4 136,066 Echelon Mall 100% 2003 1970/1998 5 310,840 Crest Plaza Shopping Center 100% 1964 1959/1991 12 45,000 Lehigh Valley Mall 50% 1973 1977/1996 7 212,000 South Mall (2) 89% 2003 1975/1992 11 188,858 Whitehall Mall 50% 1964 1964/1998 5 294,635 Logan Valley Mall (2) 89% 2003 1960/1997 6 454,387 Capital City Mall (2) 89% 2003 1974/1998 5 204,301 Owned GLA TOTAL Owned TOTAL Property Retail Properties (1) (non-anchors) GLA Space Not Owned (Name/GLA) GLA --------------------------------- -------------- -------------- --------------------------------- -------------- Wiregrass Commons 231,485 231,485 Dillard's 403,163 634,648 JC Penney McRaes Parisian Christiana Power Center I 111,595 302,409 - 302,409 South Blanding Village 32,736 106,657 - 106,657 Mount Berry Square 208,802 478,059 - 478,059 Dartmouth Mall 315,109 616,692 - 616,692 Francis Scott Key (2) 278,628 570,248 Hecht's 139,333 709,581 Valley Mall 355,972 650,320 Sears 243,400 893,720 Hecht's Prince Georges Plaza 348,491 752,953 - 752,953 Jacksonville Mall 232,327 474,442 - 474,442 Cherry Hill Mall 533,523 533,523 JC Penney 740,770 1,274,293 Macy's Strawbridge's Moorestown Mall 326,190 734,546 Lord & Taylor 321,200 1,055,746 Strawbridge's Phillipsburg Mall 246,307 552,466 - 552,466 Rio Mall 29,517 165,583 - 165,583 Echelon Mall 433,594 744,434 Strawbridge's 396,783 1,141,217 Boscov's Crest Plaza Shopping Center 60,992 105,992 Target 143,130 249,122 Lehigh Valley Mall 471,353 683,353 JC Penney 371,986 1,055,339 Strawbridge's Firestone South Mall (2) 214,677 403,535 403,535 Whitehall Mall 239,086 533,721 - 533,721 Logan Valley Mall (2) 327,247 781,634 - 781,634 Capital City Mall (2) 284,320 488,621 Hecht's 120,000 608,621
Majors / Lease Retail Properties (1) Anchors Expiration --------------------------------- -------------- -------------- Wiregrass Commons Dillard's 1/31/37 JC Penney 5/30/14 McRaes 1/31/37 Parisian 1/31/37 Christiana Power Center I Costco 1/31/37 Dick's Sporting Gds 11/30/13 South Blanding Village Staples 9/30/08 Food Lion 7/31/08 Mount Berry Square Belks 2/12/11 JC Penney 2/28/06 Profitts 1/31/12 Sears 2/8/11 Dartmouth Mall JC Penney 7/31/09 Sears 4/12/06 Francis Scott Key (2) Hecht's N/A Sears 7/31/08 JC Penney 5/31/06 Value City 6/30/10 Valley Mall Sears 4/14/44 JC Penney 10/3/09 Bon-Ton 1/31/14 Hecht's 10/23/49 Prince Georges Plaza JC Penney 7/31/04 Hecht 10/31/08 Jacksonville Mall Belks 8/21/11 JC Penney 8/31/05 Sears 8/4/11 Cherry Hill Mall JC Penney N/A Macy's N/A Strawbridge's N/A Moorestown Mall Boscov's 10/31/10 Lord & Taylor N/A Sears 10/5/22 Strawbridge's N/A Phillipsburg Mall Bon-Ton 1/31/10 JC Penney 3/31/10 Sears 4/30/09 Kohl's 1/31/25 Rio Mall K-Mart 7/31/18 Staples 10/31/04 Echelon Mall Boscov's N/A Strawbridge's N/A Crest Plaza Shopping Center Weis Market 1/31/07 Target N/A Lehigh Valley Mall Macy's 7/31/12 JC Penney N/A Strawbridge's N/A South Mall (2) Bon-Ton 9/30/05 Stein Mart 10/31/06 Steve & Barry's 1/31/11 Whitehall Mall Kohl's 3/9/07 Sears 9/18/11 Bed, Bath & Beyond 1/31/10 Logan Valley Mall (2) JC Penney 6/30/17 Kaufmann's 1/31/05 Sears 10/31/16 Capital City Mall (2) JC Penney 11/30/10 Hecht's N/A Sears 7/31/04
Property Management Property Retail Properties (1) City State Subtype Status Status --------------------------------- -------------- -------------- -------------- -------------- -------------- Chambersburg Mall (2) Chambersburg PA Enclosed Mall PREIT New Palmer Park Mall Easton PA Enclosed Mall PREIT Existing Exton Square Mall Exton PA Enclosed Mall PREIT New Festival at Exton Exton PA Strip Center PREIT Existing Schuykill Mall (2) Frackville PA Enclosed Mall PREIT New North Hanover Mall (2) Hanover PA Enclosed Mall PREIT New Paxton Towne Center Harrisburg PA Power Center PREIT Existing Laurel Mall Hazleton PA Enclosed Mall Third Party Existing Shenango Valley Mall (2) Hermitage PA Enclosed Mall PREIT New Red Rose Commons Lancaster PA Power Center Third Party Existing The Court at Oxford Valley Langhorne PA Power Center Third Party Existing Beaver Valley Mall Monaca PA Enclosed Mall PREIT New Lycoming Mall (2) Pennsdale PA Enclosed Mall PREIT New Northeast Tower Center Philadelphia PA Power Center PREIT Existing The Gallery at Market East Philadelphia PA Enclosed Mall PREIT New Plymouth Meeting Mall Plymouth Meeting PA Enclosed Mall PREIT New Metroplex Shopping Center Plymouth Mtg. PA Power Center Third Party Existing Viewmont Mall (2) Scranton PA Enclosed Mall PREIT New Springfield Park I & II Springfield PA Strip Center PREIT Existing Ownership Year Built/ Years Since Owned GLA Retail Properties (1) Interest Date Acquired Last Renovated Renovation (anchors) --------------------------------- -------------- -------------- -------------- -------------- -------------- Chambersburg Mall (2) 89% 2003 1982 21 241,690 Palmer Park Mall 100% 1972 1972/1998 5 314,235 Exton Square Mall 100% 2003 1973/2000 3 440,301 Festival at Exton 100% 1998 1991 12 60,425 Schuykill Mall (2) 89% 2003 1980/1991 12 346,990 North Hanover Mall (2) 89% 2003 1967/1999 4 288,177 Paxton Towne Center 100% 1999 2001 2 151,627 Laurel Mall 40% 1988 1973/1995 8 350,323 Shenango Valley Mall (2) 89% 2003 1967/1997 6 400,099 Red Rose Commons 50% 1998 1998 5 - The Court at Oxford Valley 50% 1997 1996 7 176,831 Beaver Valley Mall 100% 2002 1970/1991 12 511,267 Lycoming Mall (2) 89% 2003 1978/1990 13 321,441 Northeast Tower Center 100% 1998/1999 1997/1998 5 256,021 The Gallery at Market East 100% 2003 1977/1983 20 - Plymouth Meeting Mall 100% 2003 1966/1999 4 345,000 Metroplex Shopping Center 50% 1999 2001 2 67,185 Viewmont Mall (2) 89% 2003 1968/1996 7 386,262 Springfield Park I & II 50% 1997/1998 1997/1998 5 83,539
Owned GLA TOTAL Owned TOTAL Property Retail Properties (1) (non-anchors) GLA Space Not Owned (Name/GLA) GLA --------------------------------- -------------- -------------- --------------------------------- -------------- Chambersburg Mall (2) 212,918 454,608 - 454,608 Palmer Park Mall 131,937 446,172 - 446,172 Exton Square Mall 369,185 809,486 Strawbridge's 277,468 1,086,954 K-Mart Festival at Exton 84,578 145,003 - 145,003 Schuykill Mall (2) 318,872 665,862 Bon-Ton 60,916 726,778 North Hanover Mall (2) 161,009 449,186 - 449,186 Paxton Towne Center 292,856 444,483 Target 273,058 717,541 Costco Laurel Mall 206,783 557,106 - 557,106 Shenango Valley Mall (2) 128,006 528,105 528,105 Red Rose Commons 263,452 263,452 Weis Markets 199,590 463,042 Home Depot The Court at Oxford Valley 280,031 456,862 Home Depot 247,624 704,486 BJ's Beaver Valley Mall 446,709 957,976 Kaufmann's 204,770 1,162,746 Lycoming Mall (2) 341,250 662,691 Kaufmann's 120,000 782,691 Northeast Tower Center 182,521 438,542 Raymour & 38,678 477,220 Flanigan The Gallery at Market East 192,552 192,552 - 192,552 Plymouth Meeting Mall 413,484 758,484 Strawbridge's 214,635 973,119 Metroplex Shopping Center 410,276 477,461 Target 300,729 778,190 Lowe's Viewmont Mall (2) 237,404 623,666 Kaufmann's 120,000 743,666 Springfield Park I & II 43,292 126,831 Target 145,669 272,500 Majors / Lease Retail Properties (1) Anchors Expiration --------------------------------- -------------- -------------- Chambersburg Mall (2) Bon-Ton 7/31/05 JC Penney 3/31/12 Sears 2/9/10 Value City 2/28/07 Palmer Park Mall Bon-Ton 7/25/14 Boscov's 10/31/18 Exton Square Mall Boscov's 10/31/19 JC Penney 5/31/20 K-Mart N/A Sears 1/31/20 Strawbridge's N/A Festival at Exton Sears Hardware 8/18/04 Clemen's 10/31/11 Schuykill Mall (2) K-Mart 10/31/11 Sears 10/31/05 Bon-Ton N/A Black Diamond Antiques 12/31/03 North Hanover Mall (2) Bon-Ton 1/31/06 JC Penney 1/31/06 Black Rose Antiques N/A Sears 11/30/09 Paxton Towne Center Target N/A Kohl's 1/25/21 Weis 11/30/20 Costco N/A Laurel Mall Boscov's 4/30/08 K-Mart 8/31/19 JC Penney 10/31/09 Shenango Valley Mall (2) Kaufmann's 9/30/06 JC Penney 1/31/09 Sears 11/30/05 Red Rose Commons Weis Markets N/A Home Depot N/A The Court at Oxford Valley Best Buy 12/31/11 Dick's Sporting Gds 4/15/11 Linens N Things 2/14/17 Beaver Valley Mall Boscov's 9/30/18 JC Penney 9/30/17 Sears 8/15/06 Kaufmann's N/A Lycoming Mall (2) Bon-Ton 7/31/06 JC Penney 10/31/05 Kaufman's N/A Sears 7/31/08 Value City 7/31/08 Northeast Tower Center Home Depot 9/30/05 Dick's Sporting Gds 7/31/08 Petsmart 2/28/12 Wal-Mart 1/31/14 The Gallery at Market East K-Mart N/A Strawbridge's N/A Plymouth Meeting Mall AMC Theater 12/31/18 Boscov's 10/31/16 Strawbridge's N/A Metroplex Shopping Center Target N/A Lowe's N/A Giant 2/28/21 Viewmont Mall (2) JC Penney 10/31/05 Sears 12/31/05 Kauffmann's N/A Springfield Park I & II Target N/A Bed, Bath & Beyond 1/31/09 LA Fitness 3/31/17
Property Management Property Retail Properties (1) City State Subtype Status Status --------------------------------- -------------- -------------- -------------- -------------- -------------- Nittany Mall (2) State College PA Enclosed Mall PREIT New Uniontown Mall (2) Uniontown PA Enclosed Mall PREIT New Creekview Shopping Center Warrington PA Power Center PREIT Existing Washington Crown Center (2) Washington PA Enclosed Mall PREIT New Wyoming Valley Mall (2) Wilkes-Barre PA Enclosed Mall PREIT New Willow Grove Park Willow Grove PA Enclosed Mall PREIT New West Manchester Mall (2) York PA Enclosed Mall PREIT New Magnolia Mall Florence SC Enclosed Mall PREIT Redevelopment The Commons at Magnolia Florence SC Strip Center PREIT New Bradley Square Cleveland TN Enclosed Mall PREIT New New River Mall Christiansburg VA Enclosed Mall PREIT New Patrick Henry Mall Newport News VA Enclosed Mall PREIT New Valley View Mall LaCrosse WI Enclosed Mall PREIT New Martinsburg Mall Martinsburg WV Enclosed Mall PREIT New Crossroads Mall Mount Hope WV Enclosed Mall PREIT New ---------------------------------------------------------------------------------------- TOTAL WHOLLY OWNED ---------------------------------------------------------------------------------------- TOTAL JOINT VENTURE ---------------------------------------------------------------------------------------- TOTAL FOR Wholly Owned and Joint Venture ---------------------------------------------------------------------------------------- AVERAGE FOR Wholly Owned and Joint Venture Ownership Year Built/ Years Since Owned GLA Retail Properties (1) Interest Date Acquired Last Renovated Renovation (anchors) --------------------------------- -------------- -------------- -------------- -------------- -------------- Nittany Mall (2) 89% 2003 1968/1990 13 221,462 Uniontown Mall (2) 89% 2003 1972/1990 13 421,378 Creekview Shopping Center 100% 1999 2001 2 - Washington Crown Center (2) 89% 2003 1969/1999 4 245,401 Wyoming Valley Mall (2) 89% 2003 1974/1995 8 592,110 Willow Grove Park 100% 2000/2003 1982/2001 2 225,000 West Manchester Mall (2) 89% 2003 1981/1995 8 285,515 Magnolia Mall 100% 1997 1979/1992 11 343,118 The Commons at Magnolia 100% 1999 1991/2002 1 51,574 Bradley Square 100% 2003 1991/2000 3 240,421 New River Mall 100% 2003 1988 15 240,306 Patrick Henry Mall 100% 2003 1988/1999 4 267,175 Valley View Mall 100% 2003 1980/2001 2 96,357 Martinsburg Mall 100% 2003 1991/1998 5 387,303 Crossroads Mall 100% 2003 1981 22 256,248 ---------------------------------------------------------------------------------------- TOTAL WHOLLY OWNED 11,922,924 ---------------------------------------------------------------------------------------- TOTAL JOINT VENTURE 1,320,579 ---------------------------------------------------------------------------------------- TOTAL FOR Wholly Owned and Joint Venture 13,243,503 ---------------------------------------------------------------------------------------- AVERAGE FOR Wholly Owned and Joint Venture Owned GLA TOTAL Owned TOTAL Property Retail Properties (1) (non-anchors) GLA Space Not Owned (Name/GLA) GLA --------------------------------- -------------- -------------- --------------------------------- -------------- Nittany Mall (2) 215,617 437,079 Kaufmann's 95,000 532,079 Uniontown Mall (2) 277,039 698,417 - 698,417 Creekview Shopping Center 136,086 136,086 Targets 288,916 425,002 Lowe' Washington Crown Center (2) 288,097 533,498 Kaufmann's 140,095 673,593 Wyoming Valley Mall (2) 318,952 911,062 - 911,062 Willow Grove Park 339,508 564,508 Sears 641,861 1,206,369 Bloomingdale's Strawbridge West Manchester Mall (2) 296,641 582,156 Hecht's 119,768 701,924 Magnolia Mall 219,578 562,696 - 562,696 The Commons at Magnolia 52,870 104,444 Target 126,200 230,644 Bradley Square 140,885 381,306 - 381,306 New River Mall 187,849 428,155 - 428,155 Patrick Henry Mall 233,200 500,375 Hecht's 140,000 640,375 Valley View Mall 238,178 334,535 Herberges 254,596 589,131 Marshall Fields Sears Martinsburg Mall 165,194 552,497 - 552,497 Crossroads Mall 193,835 450,083 - 450,083 ---------------------------------------------------------------------------------------- TOTAL WHOLLY OWNED 11,358,805 23,281,729 5,623,740 28,905,469 ---------------------------------------------------------------------------------------- TOTAL JOINT VENTURE 1,943,790 3,264,369 1,265,598 4,529,967 ---------------------------------------------------------------------------------------- TOTAL FOR Wholly Owned and Joint Venture 13,302,595 26,546,098 6,889,338 33,435,436 ----------------------------------------------------------------------------------------
AVERAGE FOR Wholly Owned and Joint Venture
Majors / Lease Retail Properties (1) Anchors Expiration --------------------------------- -------------- -------------- Nittany Mall (2) Bon-Ton 1/31/08 JC Penney 7/31/05 Kaufmann's N/A Sears 8/31/05 Uniontown Mall (2) Bon-Ton 1/31/06 JC Penney 10/31/05 Roomful Express Furn. 3/26/05 Sears 2/25/08 Teletech Customer Care 6/28/05 Value City 7/31/07 Creekview Shopping Center Target N/A Lowe's N/A Genuardi's 12/31/21 Washington Crown Center (2) Sears 8/17/09 Bon-Ton 1/31/10 Gander 7/24/13 Kaufmann's 7/31/97 Wyoming Valley Mall (2) Bon-Ton 1/31/07 JC Penney 1/31/07 Sears 8/1/06 Kaufmann's 1/31/07 Willow Grove Park Sears N/A Bloomingdale's N/A Strawbridge's N/A Macy's 1/31/22 West Manchester Mall (2) Bon-Ton 2/28/07 Hecht's N/A Value City 10/31/11 Wal-Mart 10/31/14 Magnolia Mall Belk 1/31/06 Best Buy 1/31/13 JC Penney 3/31/07 Sears 10/18/04 The Commons at Magnolia Goody's 5/31/12 Target N/A Bradley Square Sears 10/23/05 Proffitt's 1/31/06 K-Mart 1/31/12 JC Penney 2/28/06 New River Mall Belks 4/19/08 JC Penney 3/31/08 Peebles 1/31/09 Sears 8/2/08 Patrick Henry Mall Dillard's Mens 4/30/08 Dillard's Womens 9/22/13 JC Penney 10/31/15 Hecht's Valley View Mall JC Penney 1/31/99 Herberges 7/31/05 Marshall 7/31/05 Fields 7/31/05 Sears 7/31/05 Martinsburg Mall Bon-Ton 1/31/12 JC Penney 8/31/11 Sears 9/8/11 Wal-Mart 6/28/11 Crossroads Mall Sears 11/30/08 JC Penney 3/31/06 Belk 12/31/06 --------------------------------- TOTAL WHOLLY OWNED --------------------------------- TOTAL JOINT VENTURE --------------------------------- TOTAL FOR Wholly Owned and Joint Venture --------------------------------- AVERAGE FOR Wholly Owned and Joint Venture
Summary of Properties for Wholly Owned and ------------------------------------------------------------------------------------ Enclosed Mall PREIT Managed Existing Wholly owned 40 47 16 46 ------------------------------------------------------------------------------------ Power Center Third Party Managed New Joint Venture 8 7 36 8 ------------------------------------------------------------------------------------ Strip Center Redevelopment 6 2 ------------------------------------------------------------------------------------ 54 54 54 54 ------------------------------------------------------------------------------------
Summary of Total Owned GLA for Wholly Owned and Joint Venture Properties ------------------------------------------------------------------------------------------------------------- Top 5 assets as a percentage of Total Enclosed Mall PREIT Managed Existing Wholly Owned Owned GLA: 22,738,572 23,408,560 5,900,413 23,281,729 15.9% ------------------------------------------------------------------------------------------------------------- Top asset as a percentage of Total Power Center Third Party Managed New Joint Venture Owned GLA: 3,053,016 3,137,538 19,330,036 3,264,369 3.6% ------------------------------------------------------------------------------------------------------------- Strip Center Redevelopment 754,510 1,315,649 ------------------------------------------------------------------------------------------------------------- 26,546,098 26,546,098 26,546,098 26,546,098 -------------------------------------------------------------------------------------------------------------
(1) Does not include Westgate Anchor pad in Bethlehem, PA of 108,100 sf leased for Bon-Ton with expiration date of 11/23/2005. (2) PREIT has an 89% ownership interest and a 99% economic interest in these properties. These properties are consolidated for financial reporting purposes. PAGE 21 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) Quarterly Activity Property Acquisitions/Dispositions Summary [PREIT AND PEI GRAPHICS OMITTED]
Date Acquired, Square Feet/ Ownership Completed, or Name of Project, Location Units/Acres Interest Sold ----------------------------------------- -------------- -------------- -------------- -------------- Acquisitions: Merger with Crown American Realty Trust- 26 properties and 50% interest in Palmer Park Mall Square Feet 16,236,008 50%-100% 4Q03 -------------- TOTAL ACQUISITIONS Square Feet 16,236,008 Pending Acquisitions: New Garden, New Garden, PA Square Feet 404,614 100% 2Q05 -------------- TOTAL PENDING ACQUISITIONS Square Feet 404,614 Divestitures None TOTAL DIVESTITURES Pending Divestitures: Bradley Square Mall, Cleveland, TN, Martinsburg Mall, Martinsburg, WV, Mount berry Square Mall, Rome, GA, Schuykill Mall, Frackville, PA, Shenango Valley Mall, Hermitage, PA and West Manchester Mall, York, PA. square feet 3,368,669 -------------- TOTAL PENDING DIVESTITURES square feet 3,368,669 Total Cost or PREIT's Cost Expected NOI Name of Project, Location Price or Price Cap (1) Major Tenants ----------------------------------------- -------------- -------------- -------------- -------------- Acquisitions: Merger with Crown American Realty Trust- 26 properties and 50% interest in Palmer Park Mall $ 1,300,000,000 $1,300,000,000 10.20% -------------- -------------- TOTAL ACQUISITIONS $ 1,300,000,000 $1,300,000,000 Pending Acquisitions: New Garden, New Garden, PA $ 42,580,062 $ 27,830,062 8.5% Home Depot -------------- -------------- TOTAL PENDING ACQUISITIONS $ 42,580,062 $ 27,830,062 Divestitures None TOTAL DIVESTITURES Pending Divestitures: Bradley Square Mall, Cleveland, TN, Martinsburg Mall, Martinsburg, WV, Mount berry Square Mall, Rome, GA, Schuykill Mall, Frackville, PA, Shenango Valley Mall, Hermitage, PA and West Manchester Mall, York, PA. N/A N/A TOTAL PENDING DIVESTITURES
(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. PAGE 22 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) Yearly Activity Property Acquisitions/Dispositions Summary [PREIT AND PEI GRAPHICS OMITTED]
Date Acquired, Square Feet/ Ownership Completed, or Total Cost or Name of Project, Location Units/Acres Interest Sold Price -------------- -------------- -------------- -------------- Acquisitions: Merger with Crown American Realty Trust- 26 properties and 50% interest in Palmer Park Mall Square Feet 16,236,008 50%-100% 4Q03 $ 1,300,000,000 -------------- -------------- SUBTOTAL 16,236,008 $ 1,300,000,000 Partner's 70% interest in Willow Grove Park, Willow Grove, PA Square Feet 1,205,720 100% 3Q03 122,300,000 Parcel of Land at Plymouth Meeting, Plymouth Meeting, PA Acres 6.08 100% 3Q03 15,750,000 -------------- -------------- SUBTOTAL Square Feet 1,205,720 $ 138,050,000 Acres 6.08 Cherry Hill Mall, Cherry Hill, NJ Square Feet 1,281,482 2Q03 Moorestown Mall, Moorestown, NJ 1,055,796 2Q03 The Gallery at Market East, Philadelphia, PA 192,440 2Q03 Exton Square Mall, Exton, PA 1,088,536 2Q03 Echelon Mall, Voorhees, NJ 1,142,467 2Q03 Plymouth Meeting Mall, Plymouth Meeting, PA 813,225 2Q03 -------------- -------------- SUBTOTAL Square Feet 5,573,946 100% $ 549,400,000 --------------------------------------------------------------------------------------------------------------------------------- TOTAL ACQUISITIONS Square Feet 23,015,674 1,987,450,000 Acres 6.08 --------------------------------------------------------------------------------------------------------------------------------- Pending Acquisitions: New Garden, New Garden, PA Square Feet 404,614 100% 2Q05 $ 42,580,062 --------------------------------------------------------------------------------------------------------------------------------- TOTAL PENDING ACQUISITIONS Square Feet 404,620 $ 42,580,062 --------------------------------------------------------------------------------------------------------------------------------- Divestitures Regency Lakeside Apartments, Omaha, NE Units 433 100% 3Q03 Emerald Point, Virginia Beach, VA 862 100% 3Q03 Fox Run Apartments, Warminster, PA 196 50% 3Q03 Will-O-Hill Apartments, Reading, PA 190 50% 3Q03 -------------- -------------- SUBTOTAL Units 1,681 $ 87,000,000 Fox Run Apartments, Bear, DE Units 414 100% 2Q03 Boca Palms Apartments, Boca Raton, FL 522 100% 2Q03 Cobblestone Apartments, Pompano Beach, FL 384 100% 2Q03 Eagle's Nest Apartments, Coral Spring, FL 264 100% 2Q03 Palms of Pembroke, Pembroke Pines, FL 348 100% 2Q03 Shenandoah Village Apartments, West Palm Beach, FL 220 100% 2Q03 Marylander Apartments, Baltimore, MD 507 100% 2Q03 Hidden Lakes Apartments, Dayton, OH 360 100% 2Q03 Kenwood Apartments, Toledo, OH 504 100% 2Q03 2031 Locust Street, Philadelphia, PA 87 100% 2Q03 Camp Hill Plaza Apartments, Camp Hill, PA 300 100% 2Q03 Lakewood Hills Apartments, Harrisburg, PA 562 100% 2Q03 The Woods, Ambler, PA 320 100% 2Q03 -------------- -------------- SUBTOTAL Units 4,792 $ 314,000,000 Countrywood Apartments, Tampa, FL Units 536 50% 2Q03 $ 9,100,000 Cambridge Hall Apartments, West Chester, PA Units 233 50% 6,700,000 -------------- -------------- SUBTOTAL Units 769 $ 15,800,000 Parcel of land in Crest Plaza, Allentown, PA square feet 140,000 1Q03 $ 3,200,000 --------------------------------------------------------------------------------------------------------------------------------- SUBTOTAL square feet 140,000 $ 3,200,000 --------------------------------------------------------------------------------------------------------------------------------- TOTAL DIVESTITURES Units 7,242 $ 420,000,000 Square feet 140,000 --------------------------------------------------------------------------------------------------------------------------------- Pending Divestitures: Bradley Square Mall, Cleveland, TN, Martinsburg Mall, Martinsburg, WV, Mount berry Square Mall, Rome, GA, Schuykill Mall, Frackville, PA, Shenango Valley Mall, Hermitage, PA and West Manchester Mall, York, PA. square feet 3,368,669 N/A TOTAL PENDING DIVESTITURES square feet 3,368,669 ---------------------------------------------------------------------------------------------------------------------------------
PREIT's Cost Expected NOI Name of Project, Location or Price Cap (1) Major Tenants -------------- -------------- -------------- Acquisitions: Merger with Crown American Realty Trust- 26 properties and 50% interest in Palmer Park Mall $ 1,300,000,000 10.20% --------------- SUBTOTAL $ 1,300,000,000 Partner's 70% interest in Willow Bloomingdale's, Grove Park, Willow Grove, PA 122,300,000 9.00% Macy's, Sears, Strawbridge's Parcel of Land at Plymouth Meeting, Plymouth Meeting, PA 15,750,000 N/A --------------- SUBTOTAL $ 138,050,000 Cherry Hill Mall, Cherry Hill, NJ JC Penney, Macy's, Strawbridge's Moorestown Mall, Moorestown, NJ Lord & Taylor, Strawbridge's The Gallery at Market East, Philadelphia, PA Exton Square Mall, Exton, PA Strawbridge's, K-Mart Echelon Mall, Voorhees, NJ Strawbridge's, Boscov's Plymouth Meeting Mall, Plymouth Meeting, PA Strawbridge's --------------- SUBTOTAL $ 549,400,000 --------------------------------------------------------------------------------------------- TOTAL ACQUISITIONS $ 1,987,450,000 --------------------------------------------------------------------------------------------- Pending Acquisitions: New Garden, New Garden, PA $ 27,830,062 8.5% Home Depot --------------------------------------------------------------------------------------------- TOTAL PENDING ACQUISITIONS $ 27,830,062 --------------------------------------------------------------------------------------------- Divestitures Regency Lakeside Apartments, Omaha, NE Emerald Point, Virginia Beach, VA Fox Run Apartments, Warminster, PA Will-O-Hill Apartments, Reading, PA --------------- SUBTOTAL $ 87,000,000 Fox Run Apartments, Bear, DE Boca Palms Apartments, Boca Raton, FL Cobblestone Apartments, Pompano Beach, FL Eagle's Nest Apartments, Coral Spring, FL Palms of Pembroke, Pembroke Pines, FL Shenandoah Village Apartments, West Palm Beach, FL Marylander Apartments, Baltimore, MD Hidden Lakes Apartments, Dayton, OH Kenwood Apartments, Toledo, OH 2031 Locust Street, Philadelphia, PA Camp Hill Plaza Apartments, Camp Hill, PA Lakewood Hills Apartments, Harrisburg, PA The Woods, Ambler, PA --------------- SUBTOTAL $ 314,000,000 Countrywood Apartments, Tampa, FL $ 9,100,000 Cambridge Hall Apartments, West Chester, PA 6,700,000 --------------- SUBTOTAL $ 15,800,000 Parcel of land in Crest Plaza, Allentown, PA $ 3,200,000 N/A Target --------------- SUBTOTAL $ 3,200,000 --------------------------------------------------------------------------------------------- TOTAL DIVESTITURES $ 420,000,000 --------------------------------------------------------------------------------------------- Pending Divestitures: Bradley Square Mall, Cleveland, TN, Martinsburg Mall, Martinsburg, WV, Mount berry Square Mall, Rome, GA, Schuykill Mall, Frackville, PA, Shenango Valley Mall, Hermitage, PA and West Manchester Mall, York, PA. N/A TOTAL PENDING DIVESTITURES
(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. PAGE 23 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] Development Activity
TOTAL PROJECTED TOTAL PROPERTY GLA PROJECTED COST PREIT's SHARE NAME OF PROJECT LOCATION PROPERTY TYPE (sq ft) (1) (1) OF COST ----------------------------------------------------------------------------------------------------------------------------- Christiana Power Center (Phase II) (2) Newark, DE Power Center 355,670 $ 35,542,768 $ 35,542,768 New Garden New Garden Twp, PA Power Center 404,614 42,580,062 27,830,062 Pavilion at Market East (3) Philadelphia, PA Land N/A N/A N/A ----------------------------------------------------------------------------------------------------------------------------- Total Development Activity 760,284 $ 78,122,830 $ 63,372,830 ============================================================================================================================= PREIT's SHARE EXPECTED DATE OF OF INVESTMENT STABILIZED NOI CONST START INITIAL EXPECTED DATE NAME OF PROJECT TO DATE CAP DATE OCCUPANCY OF COMPLETION ----------------------------------------------------------------------------------------------------------------------------- Christiana Power Center (Phase II) (2) $ 4,293,843 9.8% 4Q04 1Q06 1Q06 New Garden 1,299,390 8.5% 2Q05 1Q06 1Q06 Pavilion at Market East (3) 1,506,178 N/A N/A N/A N/A ----------------------------------------------------------------------------------------------------------------------------- Total Development Activity $ 7,099,411 9.2% ============================================================================================================================= STABILIZED OPERATIONS NAME OF PROJECT DATE STATUS % COMP. % LEASED % OCCUPIED ----------------------------------------------------------------------------------------------------------------------------- Christiana Power Center (Phase II) (2) 2Q06 Development 12% 79% 0% New Garden 2Q06 Development 5% 32% 0% Pavilion at Market East (3) N/A Construction N/A N/A N/A ----------------------------------------------------------------------------------------------------------------------------- Total Development Activity ============================================================================================================================= NAME OF PROJECT ANCHORS PREIT's SHARE ---------------------------------------------------------------------- Christiana Power Center (Phase II) (2) 100% New Garden Home Depot, Supermarket 100% Pavilion at Market East (3) 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 PROPERTY GLA PROJECTED COST PREIT's SHARE NAME OF PROJECT LOCATION PROPERTY TYPE (sq ft) (1) (1) OF COST ----------------------------------------------------------------------------------------------------------------------------- Magnolia Mall (2) Florence, SC Enclosed Mall 579,244 $ 11,529,000 $ 10,873,575 Prince Georges Plaza (2)(3) Hyattsville, MD Enclosed Mall 893,274 24,146,000 17,200,000 ----------------------------------------------------------------------------------------------------------------------------- Total Redevelopment Activity $ 1,472,518 $ 35,675,000 $ 28,073,575 ============================================================================================================================= PREIT's SHARE EXPECTED DATE OF OF INVESTMENT STABILIZED NOI CONST START INITIAL EXPECTED DATE NAME OF PROJECT TO DATE CAP DATE OCCUPANCY OF COMPLETION ----------------------------------------------------------------------------------------------------------------------------- Magnolia Mall (2) $ 7,364,091 11.1% 2Q02 4Q02 4Q04 Prince Georges Plaza (2)(3) 4,301,326 12.0% 2Q03 4Q04 4Q04 ----------------------------------------------------------------------------------------------------------------------------- Total Redevelopment Activity $ 11,665,417 11.7% ============================================================================================================================= STABILIZED OPERATIONS NAME OF PROJECT DATE STATUS % COMP. % LEASED % OCCUPIED ----------------------------------------------------------------------------------------------------------------------------- Magnolia Mall (2) 4Q04 Construction 68% 88% 74% Prince Georges Plaza (2)(3) 4Q05 Construction 25% 65% 0% ----------------------------------------------------------------------------------------------------------------------------- Total Redevelopment Activity ============================================================================================================================= NAME OF PROJECT ANCHORS PREIT's SHARE --------------------------------------------------------------------- Magnolia Mall (2) Best Buy, Foodcourt 100% Prince Georges Plaza (2)(3) 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 12/31/03. PAGE 24 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] Top Twenty Tenants (by PREIT's share of Annualized Base Rent)
PREIT's share Percent of of PREIT's Total Number of GLA of Annualized Annualized Retail Tenant Stores Stores Base Rent Base Rent (2) Base Rent --------------------------------- -------------- -------------- -------------- -------------- -------------- The Gap, Inc./Old Navy (1) 58 680,011 "$12,729,826 "$11,910,516 5.30% The Limited Stores, Inc. (1) 102 544,016 10,649,530 10,166,648 4.52% JC Penney (1) 34 2,893,720 7,441,818 7,310,713 3.25% Sears 33 3,432,057 6,570,377 6,414,645 2.85% Footlocker, Inc. (1) 67 355,189 5,990,633 5,690,447 2.53% Zales 89 70,394 5,095,220 4,884,446 2.17% Hallmark Cards, Inc. (1) 59 207,855 4,422,366 4,346,033 1.93% Trans World Entertainment 39 175,350 4,078,885 3,826,746 1.70% Kay Jewelers 40 55,625 3,646,589 3,459,089 1.54% Borders (1) 36 193,917 3,629,901 3,410,686 1.52% Bon-Ton 18 1,284,678 3,394,099 3,394,099 1.51% American Eagle Outfitters (1) 32 156,013 3,517,262 3,383,684 1.51% Kay Bee Toys (1)(4) 41 166,224 3,012,744 2,875,859 1.28% Shoe Show, Inc. 36 176,085 2,806,185 2,732,147 1.22% Regis Corp. 82 95,502 2,739,393 2,696,101 1.20% Boscov's (1) 7 1,308,706 3,137,572 2,695,972 1.20% Sun Capital Partners (1) 27 91,171 2,654,884 2,575,483 1.15% Payless Shoe Source (1) 45 148,540 2,702,296 2,561,611 1.14% Charming Shoppes, Inc. (1) 31 216,259 2,597,844 2,458,806 1.09% Luxottica Retail Group 39 79,376 2,603,716 2,424,788 1.08% ----------------------------------------------------------------------------------------------------------------------------- Total Top 20 Tenants 915 12,330,688 93,421,140 89,218,519 39.71% ----------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------- Total Retail Leased 3,725 24,399,609 $ 288,743,218 $224,691,272 (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 4th quarter base rent. Straight line rent is not included in the base rent figures. (4) Kay Bee Toys filed for bankruptcy protection (chapter 11) in January, 2004 PAGE 25 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) Retail Lease Expiration Schedule - Anchors(1)
Year Leases Gross Leasable Area Annualized Base Rent --------------------------------------------------------------------------------------------------------------------------------- PREIT's Share Percent of Lease Number of of Rent in Total Average Expiration Leases Percent of Rent in Expiring Year (PREIT's Expiring Base Year Expiring Expiring GLA Total Expiring Year (3) Share) Rent psf --------------------------------------------------------------------------------------------------------------------------------- Prior (2) 0 - 0.00% $- $- 0.00% $- 2003 1 85,483 0.68% 194,478 194,478 0.55% 2.28 2004 6 558,677 4.44% 1,000,212 551,112 1.55% 1.79 2005 24 1,839,102 14.61% 6,104,300 6,104,300 17.13% 3.32 2006 22 1,368,381 10.87% 3,643,959 3,643,959 10.23% 2.66 2007 11 939,155 7.46% 1,985,054 1,975,154 5.54% 2.11 2008 16 1,070,427 8.50% 2,799,649 2,799,649 7.86% 2.62 2009 13 902,499 7.17% 3,419,005 1,436,157 4.03% 3.79 2010 7 642,772 5.11% 2,146,713 2,146,713 6.02% 3.34 2011 13 1,169,231 9.29% 4,958,649 3,835,834 10.76% 4.24 2012 6 520,707 4.14% 1,332,856 1,295,975 3.64% 2.56 2013 5 304,486 2.42% 2,286,713 2,286,713 6.42% 7.51 Thereafter 28 3,185,384 25.31% 13,788,252 9,365,910 26.28% 4.33 --------------------------------------------------------------------------------------------------------------------------------- Totals: 152 12,586,304 100% $43,659,840 $35,635,954 100% $3.47 =================================================================================================================================
(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. PAGE 26 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) Retail Lease Expiration Schedule -Non-Anchors(1)
Year Leases Gross Leasable Area Annualized Base Rent --------------------------------------------------------------------------------------------------------------------------------- Percent of Lease Number of PREIT's Share Total Average Expiration Leases Percent of Rent in of Rent in (PREIT's Expiring Base Year Expiring Expiring GLA Total Expiring Year Expiring Year Share) Rent psf --------------------------------------------------------------------------------------------------------------------------------- Prior (2) 2003 33 83,043 0.70% 1,066,620 1,014,885 0.44% 12.84 2004 511 1,119,816 9.48% 22,455,471 20,262,388 8.78% 20.05 2005 442 1,095,830 9.28% 24,150,690 22,273,252 9.65% 22.04 2006 432 1,219,843 10.33% 26,597,698 24,734,620 10.72% 21.80 2007 404 1,127,462 9.54% 23,663,277 22,151,923 9.60% 20.99 2008 366 1,152,369 9.75% 25,417,161 24,293,348 10.53% 22.06 2009 311 970,369 8.21% 21,948,503 21,208,261 9.19% 22.62 2010 332 1,117,510 9.46% 25,546,626 24,429,123 10.58% 22.86 2011 242 1,086,194 9.19% 23,394,563 20,328,269 8.81% 21.54 2012 195 840,091 7.11% 19,399,209 17,661,968 7.65% 23.09 2013 180 581,227 4.92% 14,392,418 13,705,092 5.94% 24.76 Thereafter 125 1,419,551 12.02% 23,544,625 18,742,603 8.12% 16.59 ---------------------------------------------------------------------------------------------------------------------------------- Totals: 3,573 11,813,305 100% $251,576,861 $230,805,732 100% $21.30 ==================================================================================================================================
(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. PAGE 27 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) Leasing Activity Summary RETAIL
Annualized Average Increase/ Tenant Previous Base Average New Decrease in Improvements New Lease Number GLA Rent psf Base Rent psf Base Rent psf 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 11 24,589 28.00 28.65 0.65 1.43 ------------- ------------- ------------- ------------- ------------- ------------- Total or Average 29 67,554 $28.62 $31.95 $3.32 $1.26 ------------- ------------- ------------- ------------- ------------- ------------- 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 19 31,926 - 18.15 18.15 0.93 ------------- ------------- ------------- ------------- ------------- ------------- Total or Average 49 241,999 - $10.47 $10.47 $0.73 ============= ============= ============= ============= ============= ============= TOTAL Annualized Annualized Leasing Costs of Commissions Leasing psf New Lease psf (1)(2) (1)(2) ----------------------------- ------------- ------------- Previously Leased Space: 1st Quarter $- $- 2nd Quarter - 3rd Quarter - 3.08 4th Quarter - 1.43 ------------- ------------- Total or Average $- $1.26 ------------- ------------- Previously Vacant Space: 1st Quarter $- $- 2nd Quarter 0.50 3rd Quarter 0.74 4th Quarter - 0.93 ------------- ------------- Total or Average $- $0.73 ============= =============
Annualized Average Increase/ Tenant Previous Base Average New Decrease in Improvements Renewal (3) Number GLA Rent psf Base Rent psf Base Rent psf 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 51 118,603 22.95 24.08 1.13 - ------------- ------------- ------------- ------------- ------------- ------------- Total or Average 97 348,478 $17.03 $18.90 $1.88 $- ============= ============= ============= ============= ============= ============= TOTAL Annualized Annualized Leasing Costs of Commissions Leasing psf Renewal (3) 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. PAGE 28 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) Capital Expenditures
Q4 03 (3 months ended December 31, 2003) -------------------------------------------------------- Retail Wholly Owned Joint Ventures Total --------------------------------------------------------------------- ---------------- ---------------- ---------------- New development projects $856,081 $856,081 Redevelopment projects with incremental GLA and/or Anchor Replacement 3,125,754 3,125,754 Renovation with no incremental GLA - Tenant allowances 1,072,892 192,500 1,265,392 Operational capital expenditures at properties: - CAM expenditures 326,758 326,758 Non-CAM expenditures 231,021 319,163 550,184 ---------------- ---------------- ---------------- Total $5,612,506 $511,663 $6,124,169 ================ ================ ================
External and internal leasing commissions for this period were $27,000 PAGE 29 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
Enclosed Malls (Includes Non-Anchor Q403 % Change Owned Space) ------------------------------------------------- ------------------------------------------------- In-Line In-Line Total only In-Line Total Total only In-Line Total w/Anchor (Non- (Non- w/Anchor w/Anchor (Non- (Non- w/Anchor % Anchor) Anchor) % % % Anchor) % Anchor) % % Leased Available % Leased Available Leased Available Leased Available --------- --------- --------- --------- --------- --------- --------- --------- Beaver Valley Mall 90.1% 9.9% 78.7% 21.3% -1.5% 1.5% -3.2% 3.2% Bradley Square 87.9% 12.1% 67.2% 32.8% N/A N/A N/A N/A Capital City 99.3% 0.7% 98.8% 1.2% N/A N/A N/A N/A Chambersburg Mall 93.7% 6.3% 86.6% 13.4% N/A N/A N/A N/A Cherry Hill Mall 93.6% 6.4% 93.6% 6.4% N/A N/A N/A N/A Crossroads Mall 94.6% 5.4% 87.4% 12.6% N/A N/A N/A N/A Dartmouth Mall 81.4% 18.6% 93.1% 6.9% 2.6% -2.6% 5.3% -5.3% Echelon Mall 41.2% 58.8% 70.7% 29.3% N/A N/A N/A N/A Exton Square Mall 94.2% 5.8% 87.3% 12.7% N/A N/A N/A N/A Francis Scott Key Mall 96.1% 3.9% 92.1% 7.9% N/A N/A N/A N/A Jacksonville Mall 98.5% 1.5% 96.9% 3.1% N/A N/A N/A N/A Laurel Mall 98.3% 1.7% 95.5% 4.5% 2.3% -2.3% 6.2% -6.2% Lehigh Valley Mall 91.8% 8.2% 88.1% 11.9% -4.7% 4.7% -6.8% 6.8% Logan Valley Mall 98.1% 1.9% 95.5% 4.5% N/A N/A N/A N/A Lycoming Mall 91.9% 8.1% 84.2% 15.8% N/A N/A N/A N/A Magnolia Mall 94.2% 5.8% 85.1% 14.9% -0.3% 0.3% -0.7% 0.7% Martinsburg Mall 94.7% 5.3% 82.2% 17.8% N/A N/A N/A N/A Moorestown Mall 96.2% 3.8% 91.4% 8.6% N/A N/A N/A N/A Mount Berry Square 88.6% 11.4% 73.8% 26.2% N/A N/A N/A N/A New River Valley Mall 94.5% 5.5% 87.4% 12.6% N/A N/A N/A N/A Nittany Mall 94.4% 5.6% 88.7% 11.3% N/A N/A N/A N/A North Hanover Mall 93.7% 6.3% 82.3% 17.7% N/A N/A N/A N/A Palmer Park Mall 98.5% 1.5% 95.0% 5.0% 2.9% -2.9% 9.7% -9.7% Patrick Henry Mall 99.1% 0.9% 98.0% 2.0% N/A N/A N/A N/A Phillipsburg Mall 74.8% 25.2% 77.0% 23.0% N/A N/A N/A N/A Plymouth Meeting 73.8% 26.2% 90.7% 9.3% N/A N/A N/A N/A Prince Georges Plaza 88.8% 11.2% 93.0% 7.0% -0.2% 0.2% -0.5% 0.5% Schuylkill Mall 77.2% 22.8% 70.7% 29.3% N/A N/A N/A N/A Shenango Valley Mall 92.5% 7.5% 69.1% 30.9% N/A N/A N/A N/A South Mall 95.7% 4.3% 91.9% 8.1% N/A N/A N/A N/A The Gallery at Market East 94.6% 5.4% 94.6% 5.4% N/A N/A N/A N/A Uniontown Mall 96.1% 3.9% 90.2% 9.8% N/A N/A N/A N/A Valley Mall 99.4% 0.6% 98.9% 1.1% N/A N/A N/A N/A Valleyview Mall 94.7% 5.3% 92.6% 7.4% N/A N/A N/A N/A Viewmont Mall 99.1% 0.9% 97.5% 2.5% N/A N/A N/A N/A Washington Crown Center 93.0% 7.0% 87.1% 12.9% N/A N/A N/A N/A West Manchester Mall 80.8% 19.2% 62.2% 37.8% N/A N/A N/A N/A Willow Grove Park 96.2% 3.8% 93.7% 6.3% -0.4% 0.4% -0.7% 0.7% Wiregrass Mall 82.9% 17.1% 82.9% 17.1% N/A N/A N/A N/A Wyoming Mall 98.0% 2.0% 94.2% 5.8% N/A N/A N/A N/A --------- --------- --------- --------- --------- --------- --------- --------- Enclosed Malls weighted average (1) 90.5% 9.5% 87.4% 12.6% -1.2% 1.2% -2.6% 2.6% --------- --------- --------- --------- --------- --------- --------- --------- Wholly Owned Properties 89.9% 10.1% 86.8% 13.2% 2.6% -2.6% -0.4% 0.4% Joint Venture Properties 95.8% 4.2% 91.9% 8.1% -0.4% 0.4% -0.7% 0.7% --------- --------- --------- --------- --------- --------- --------- --------- PRI-managed 90.2% 9.8% 87.1% 12.9% 0.3% -0.3% -1.4% 1.4% Non PRI-managed 94.7% 5.3% 90.4% 9.6% -1.5% 1.5% -2.8% 2.8% --------- --------- --------- --------- --------- --------- --------- --------- Same Properties/ Existing 91.9% 8.1% 91.7% 8.3% 1.1% -1.1% 0.3% -0.3% New 90.3% 9.7% 86.8% 13.2% -3.1% 3.1% -0.5% 0.5% Redevelopment Properties 91.1% 8.9% 89.9% 10.1% -3.4% 3.4% 4.1% -4.1% --------- --------- --------- --------- --------- --------- --------- ---------
Enclosed Malls (Includes Non-Anchor Q402 Owned Space) ------------------------------------------------- In-Line Total Total only In-Line w/Anchor w/Anchor (Non- (Non- % % Anchor) % Anchor) % Leased Available Leased Available --------- --------- --------- --------- Beaver Valley Mall 91.6% 8.4% 82.0% 18.0% Bradley Square N/A N/A N/A N/A Capital City N/A N/A N/A N/A Chambersburg Mall N/A N/A N/A N/A Cherry Hill Mall N/A N/A N/A N/A Crossroads Mall N/A N/A N/A N/A Dartmouth Mall 78.8% 21.2% 87.8% 12.2% Echelon Mall N/A N/A N/A N/A Exton Square Mall N/A N/A N/A N/A Francis Scott Key Mall N/A N/A N/A N/A Jacksonville Mall N/A N/A N/A N/A Laurel Mall 96.0% 4.0% 89.3% 10.7% Lehigh Valley Mall 96.5% 3.5% 94.9% 5.1% Logan Valley Mall N/A N/A N/A N/A Lycoming Mall N/A N/A N/A N/A Magnolia Mall 94.5% 5.5% 85.8% 14.2% Martinsburg Mall N/A N/A N/A N/A Moorestown Mall N/A N/A N/A N/A Mount Berry Square N/A N/A N/A N/A New River Valley Mall N/A N/A N/A N/A Nittany Mall N/A N/A N/A N/A North Hanover Mall N/A N/A N/A N/A Palmer Park Mall 95.6% 4.4% 85.3% 14.7% Patrick Henry Mall N/A N/A N/A N/A Phillipsburg Mall N/A N/A N/A N/A Plymouth Meeting N/A N/A N/A N/A Prince Georges Plaza 88.9% 11.1% 93.5% 6.5% Schuylkill Mall N/A N/A N/A N/A Shenango Valley Mall N/A N/A N/A N/A South Mall N/A N/A N/A N/A The Gallery at Market East N/A N/A N/A N/A Uniontown Mall N/A N/A N/A N/A Valley Mall N/A N/A N/A N/A Valleyview Mall N/A N/A N/A N/A Viewmont Mall N/A N/A N/A N/A Washington Crown Center N/A N/A N/A N/A West Manchester Mall N/A N/A N/A N/A Willow Grove Park 96.6% 3.4% 94.4% 5.6% Wiregrass Mall N/A N/A N/A N/A Wyoming Mall N/A N/A N/A N/A --------- --------- --------- --------- Enclosed Malls weighted average (1) 91.7% 8.3% 89.9% 10.1% --------- --------- --------- --------- Wholly Owned Properties 87.3% 12.7% 87.2% 12.8% Joint Venture Properties 96.2% 3.8% 92.6% 7.4% --------- --------- --------- --------- PRI-managed 90.0% 10.0% 88.5% 11.5% Non PRI-managed 96.3% 3.7% 93.2% 6.8% --------- --------- --------- --------- Same Properties/ Existing 90.8% 9.2% 91.3% 8.7% New 93.4% 6.6% 87.3% 12.7% Redevelopment Properties 94.5% 5.5% 85.8% 14.2% --------- --------- --------- ---------
(1) Magnolia Mall and Prince Georges Plaza are classified as a redevelopment property and are not included in the weighted average. PAGE 30 Pennsylvania REIT [GRAPHIC OMITTED] QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
Enclosed Malls (Includes Non-Anchor Owned Space) Q403 -------------------------------------------------------------------------------------------- Avg Base Rent Avg % Rent psf Additional Avg Comp Sales Occup. Cost psf (1) (1) Charges psf psf (2) Ratio --------------- --------------- --------------- --------------- --------------- Beaver Valley Mall $17.05 $0.46 $5.25 $238 9.57% Bradley Square 14.75 0.54 3.74 221 8.61% Capital City 21.15 0.93 5.74 351 7.93% Chambersburg Mall 17.88 0.19 4.95 230 10.01% Cherry Hill Mall 34.63 0.90 16.10 420 12.29% Crossroads Mall 16.59 1.18 6.01 257 9.25% Dartmouth Mall 19.20 1.43 7.83 389 7.31% Echelon Mall 23.07 0.20 12.50 225 15.90% Exton Square Mall 35.44 0.53 13.01 371 13.20% Francis Scott Key Mall 20.93 0.39 6.17 270 10.18% Jacksonville Mall 21.98 1.09 5.72 344 8.37% Laurel Mall 13.81 0.43 5.33 263 7.45% Lehigh Valley Mall 30.13 0.68 9.49 440 9.16% Logan Valley Mall 21.36 1.29 6.60 297 9.85% Lycoming Mall 14.04 1.29 4.79 244 8.25% Magnolia Mall (3) 24.07 0.74 8.55 311 10.72% Martinsburg Mall 15.73 0.30 9.48 243 10.50% Moorestown Mall 24.72 0.72 14.14 330 11.99% Mount Berry Square 16.03 0.75 4.28 223 9.44% New River Valley Mall 19.10 0.48 4.54 229 10.54% Nittany Mall 19.84 0.72 7.12 256 10.81% North Hanover Mall 18.42 1.03 6.11 275 9.30% Palmer Park Mall 21.56 1.27 9.28 335 9.58% Patrick Henry Mall 30.46 1.72 10.04 414 10.20% Phillipsburg Mall 21.92 0.89 10.05 285 11.53% Plymouth Meeting 19.08 0.40 7.39 264 10.18% Prince Georges Plaza (3) 23.35 1.33 10.37 385 9.10% Schuylkill Mall 10.36 0.29 3.27 196 7.10% Shenango Valley Mall 16.93 0.90 7.12 261 9.56% South Mall 12.51 0.73 4.29 285 6.15% The Gallery at Market East 33.28 0.73 9.20 365 11.84% Uniontown Mall 13.85 1.00 4.14 254 7.47% Valley Mall 18.07 0.88 4.76 305 7.77% Valleyview Mall 21.71 0.25 10.36 304 10.63% Viewmont Mall 22.15 1.59 7.23 344 9.00% Washington Crown Center 15.60 0.69 3.84 246 8.19% West Manchester Mall 16.44 0.37 5.06 212 10.31% Willow Grove Park 37.60 0.22 19.88 395 14.61% Wiregrass Mall 20.75 0.41 7.33 262 10.87% Wyoming Mall 21.70 0.49 7.14 297 9.87% --------------- --------------- --------------- --------------- --------------- Enclosed Malls weighted average $21.88 $0.74 $8.16 $305 10.11% --------------- --------------- --------------- --------------- --------------- Wholly Owned Properties $21.04 $0.77 $7.69 $295 10.01% Joint Venture Properties $28.31 $0.56 $11.82 $381 10.68% PRI-managed $21.67 $0.75 $8.16 $299 10.23% Non PRI-managed $24.87 $0.60 $8.15 $383 8.78% Same Properties/ Existing $22.86 $0.92 $8.19 $379 8.44% New $21.76 $0.72 $8.16 $295 10.38% --------------- --------------- --------------- --------------- --------------- Redevelopment Properties $23.61 $1.11 $9.70 $358 9.62% =============== =============== =============== =============== ===============
Enclosed Malls (Includes Non-Anchor Owned Space) % Change -------------------------------------------------------------------------------------------- Avg Base Rent Additional Avg Comp Sales Occup. Cost psf Avg % Rent psf Charges psf psf Ratio --------------- --------------- --------------- --------------- --------------- Beaver Valley Mall -3.3% -21.3% 0.6% -3.6% 0.1% Bradley Square N/A N/A N/A N/A N/A Capital City N/A N/A N/A N/A N/A Chambersburg Mall N/A N/A N/A N/A N/A Cherry Hill Mall N/A N/A N/A N/A N/A Crossroads Mall N/A N/A N/A N/A N/A Dartmouth Mall 3.7% -10.8% 4.4% -2.8% 0.4% 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 Francis Scott Key Mall N/A N/A N/A N/A N/A Jacksonville Mall N/A N/A N/A N/A N/A Laurel Mall -2.6% 21.8% 17.4% -9.6% 0.9% Lehigh Valley Mall 8.1% -12.1% 9.3% 2.8% 0.4% Logan Valley Mall N/A N/A N/A N/A N/A Lycoming Mall N/A N/A N/A N/A N/A Magnolia Mall (3) 13.1% -37.2% -0.4% 4.7% 0.3% Martinsburg Mall N/A N/A N/A N/A N/A Moorestown Mall N/A N/A N/A N/A N/A Mount Berry Square N/A N/A N/A N/A N/A New River Valley Mall N/A N/A N/A N/A N/A Nittany Mall N/A N/A N/A N/A N/A North Hanover Mall N/A N/A N/A N/A N/A Palmer Park Mall 0.5% -7.9% -1.1% 1.8% -0.2% Patrick Henry Mall N/A N/A N/A N/A N/A Phillipsburg Mall N/A N/A N/A N/A N/A Plymouth Meeting N/A N/A N/A N/A N/A Prince Georges Plaza (3) -0.1% -15.1% -2.7% 4.3% -0.5% Schuylkill Mall N/A N/A N/A N/A N/A Shenango Valley Mall N/A N/A N/A N/A N/A South 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 Uniontown Mall N/A N/A N/A N/A N/A Valley Mall N/A N/A N/A N/A N/A Valleyview Mall N/A N/A N/A N/A N/A Viewmont Mall N/A N/A N/A N/A N/A Washington Crown Center N/A N/A N/A N/A N/A West Manchester Mall N/A N/A N/A N/A N/A Willow Grove Park 4.2% -31.5% 17.6% 0.8% 1.0% Wiregrass Mall N/A N/A N/A N/A N/A Wyoming Mall N/A N/A N/A N/A N/A --------------- --------------- --------------- --------------- --------------- Enclosed Malls weighted average -7.6% -17.7% -10.8% -15.0% 0.7% --------------- --------------- --------------- --------------- --------------- Wholly Owned Properties 6.4% -36.3% 0.2% -11.2% 1.4% Joint Venture Properties 3.9% -10.1% 12.6% -0.4% 0.7% PRI-managed -8.2% -25.9% -17.6% -13.4% 0.2% Non PRI-managed 4.4% -7.6% 9.2% -1.2% 0.5% Same Properties/ Existing 2.1% -18.8% -2.2% -0.5% 0.1% New -16.9% 57.3% -23.4% -6.1% -1.5% --------------- --------------- --------------- --------------- --------------- Redevelopment Properties 11.0% -5.0% 13.0% 20.5% -0.8% =============== =============== =============== =============== ===============
Enclosed Malls (Includes Non-Anchor Owned Space) Q402 -------------------------------------------------------------------------------------------- Avg Base Rent Avg % Rent psf Additional Avg Comp Sales Occup. Cost psf (1) (1) Charges psf psf(2) Ratio --------------- --------------- --------------- --------------- --------------- Beaver Valley Mall $17.63 $0.58 $5.22 $247 9.49% Bradley Square N/A N/A N/A N/A N/A Capital City N/A N/A N/A N/A N/A Chambersburg Mall N/A N/A N/A N/A N/A Cherry Hill Mall N/A N/A N/A N/A N/A Crossroads Mall N/A N/A N/A N/A N/A Dartmouth Mall 18.52 1.60 7.50 400 6.90% 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 Francis Scott Key Mall N/A N/A N/A N/A N/A Jacksonville Mall N/A N/A N/A N/A N/A Laurel Mall 14.18 0.36 4.54 291 6.56% Lehigh Valley Mall 27.87 0.77 8.68 428 8.72% Logan Valley Mall N/A N/A N/A N/A N/A Lycoming Mall N/A N/A N/A N/A N/A Magnolia Mall (3) 21.27 1.17 8.58 297 10.45% Martinsburg Mall N/A N/A N/A N/A N/A Moorestown Mall N/A N/A N/A N/A N/A Mount Berry Square N/A N/A N/A N/A N/A New River Valley Mall N/A N/A N/A N/A N/A Nittany Mall N/A N/A N/A N/A N/A North Hanover Mall N/A N/A N/A N/A N/A Palmer Park Mall 21.45 1.38 9.38 329 9.79% Patrick Henry Mall N/A N/A N/A N/A N/A Phillipsburg Mall N/A N/A N/A N/A N/A Plymouth Meeting N/A N/A N/A N/A N/A Prince Georges Plaza (3) 23.37 1.57 10.66 369 9.65% Schuylkill Mall N/A N/A N/A N/A N/A Shenango Valley Mall N/A N/A N/A N/A N/A South 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 Uniontown Mall N/A N/A N/A N/A N/A Valley Mall N/A N/A N/A N/A N/A Valleyview Mall N/A N/A N/A N/A N/A Viewmont Mall N/A N/A N/A N/A N/A Washington Crown Center N/A N/A N/A N/A N/A West Manchester Mall N/A N/A N/A N/A N/A Willow Grove Park 36.08 0.32 16.91 392 13.60% Wiregrass Mall N/A N/A N/A N/A N/A Wyoming Mall N/A N/A N/A N/A N/A --------------- --------------- --------------- --------------- --------------- Enclosed Malls weighted average $23.67 $0.90 $9.15 $358 9.41% --------------- --------------- --------------- --------------- --------------- Wholly Owned Properties $19.77 $1.20 $7.67 $332 8.63% Joint Venture Properties $27.24 $0.63 $10.50 $383 10.03% PRI-managed $23.61 $1.02 $9.90 $345 10.00% Non PRI-managed $23.83 $0.65 $7.46 $388 8.24% Same Properties/ Existing $22.39 $1.13 $8.38 $381 8.38% New $26.19 $0.46 $10.64 $314 11.87% --------------- --------------- --------------- --------------- --------------- Redevelopment Properties $21.27 $1.17 $8.58 $297 10.45% =============== =============== =============== =============== ===============
(1) Base rent is actual for Q403. Additional charges and % rent are projections for 2003. (2) Average comparable sales for Q402 are actual. (3) Magnolia Mall and Prince Georges Plaza are classified as a redevelopment property and are not included in the weighted average. PAGE 31 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED]
Power Centers (Includes Non-Anchor Owned Space) Q403 % Change ------------------------------------------------ ------------------------------------------------ Avg Base Rent Avg % Rent Additional Avg Base Rent Avg % Rent Additional psf (1) psf (1) Charges psf psf psf Charges psf ------------- ------------- ------------- ------------- ------------- ------------- Christiana Power Center $19.59 $- $1.95 1.2% -100.0% 28.4% Creekview Shopping Center 14.33 - 2.87 0.2% N/A 10.5% Northeast Tower Center 13.43 - 3.91 -0.1% N/A 18.7% Paxton Towne Center 16.10 - 2.62 1.4% N/A 24.3% The Court at Oxford Valley 15.14 0.03 3.77 -1.2% N/A 42.9% Red Rose Commons 13.57 0.02 2.89 2.6% -58.3% 18.4% Whitehall Mall 10.72 0.41 3.12 -1.0% 40.6% 18.8% Metroplex Shopping Center 18.13 - 3.45 0.0% N/A -4.2% ------------- ------------- ------------- ------------- ------------- ------------- Power Centers weighted average $15.22 $0.06 $3.17 0.4% 34.6% 15.6% ------------- ------------- ------------- ------------- ------------- ------------- Wholly Owned Properties $15.61 $- $2.90 0.8% -100.0% 19.6% Joint Venture Properties $14.98 $0.09 $3.33 0.1% 38.0% 13.9% ------------- ------------- ------------- ------------- ------------- ------------- PRI-managed $15.61 $- $2.90 0.8% -100.0% 19.6% Non PRI-managed $14.98 $0.09 $3.33 0.1% 38.0% 13.9% ------------- ------------- ------------- Same Properties/Existing $15.22 $0.06 $3.17 0.7% 6.7% 10.8% ------------- ------------- ------------- New $- $- $- -100.0% N/A -100.0% Redevelopment Properties $- $- $- N/A N/A N/A ------------- ------------- ------------- ------------- ------------- ------------- Q402 ------------------------------------------------ Avg Base Rent Avg % Rent Additional psf (1) psf (1) Charges psf ------------- ------------- ------------- Christiana Power Center $19.37 $0.01 $1.52 Creekview Shopping Center 14.31 - 2.60 Northeast Tower Center 13.44 - 3.30 Paxton Towne Center 15.88 - 2.11 The Court at Oxford Valley 15.33 - 2.64 Red Rose Commons 13.22 0.04 2.44 Whitehall Mall 10.83 0.29 2.63 Metroplex Shopping Center 18.13 - 3.60 ------------- ------------- ------------- Power Centers weighted average $15.15 $0.04 $2.75 ------------- ------------- ------------- Wholly Owned Properties $15.48 $0.00 $2.43 Joint Venture Properties $14.97 $0.07 $2.93 ------------- ------------- ------------- PRI-managed $15.48 $0.00 $2.43 Non PRI-managed $14.97 $0.07 $2.93 ------------- ------------- ------------- Same Properties/Existing $15.11 $0.05 $2.87 New $15.32 $- $2.28 Redevelopment Properties $- $- $- ------------- ------------- -------------
(1) Base rent is actual for Q403. Additional charges and % rent are projections for 2003.
Occupancy Q403 Change in % Occupancy ------------------------------------------------- ------------------------------------------------- In-Line In-Line only In-Line only In-Line Total w/ Total w/ (Non- (Non- Total w/ Total w/ (Non- (Non- Anchor % Anchor % Anchor) % Anchor) % Anchor % Anchor % Anchor) % Anchor) % Leased Available Leased Available Leased Available Leased Available --------- --------- --------- --------- --------- --------- --------- --------- Christiana Power Center 100.0% 0.0% 100.0% 0.0% 0.0% 0.0% 15.7% -15.7% Creekview Shopping Center 100.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Northeast Tower Center 100.0% 0.0% 100.0% 0.0% 0.0% 0.0% 68.8% -68.8% Paxton Towne Center 92.1% 7.9% 87.9% 12.1% 2.4% -2.4% -10.8% 10.8% The Court at Oxford Valley 97.1% 2.9% 95.3% 4.7% -2.9% 2.9% 2.3% -2.3% Red Rose Commons 99.2% 0.8% 99.2% 0.8% 0.0% 0.0% 2.0% -2.0% Whitehall Mall 97.6% 2.4% 94.7% 5.3% -0.3% 0.3% 3.2% -3.2% Metroplex Shopping Center 100.0% 0.0% 100.0% 0.0% 0.0% 0.0% 29.2% -29.2% --------- --------- --------- --------- --------- --------- --------- --------- Power Centers weighted average 97.9% 2.1% 96.7% 3.3% -0.1% 0.1% -0.2% 0.2% --------- --------- --------- --------- --------- --------- --------- --------- Wholly Owned Properties 97.3% 2.7% 95.1% 4.9% 1.2% -1.2% 1.5% -1.5% Joint Venture Properties 98.4% 1.6% 97.6% 2.4% -0.9% 0.9% -1.3% 1.3% --------- --------- --------- --------- --------- --------- --------- --------- PRI-managed 97.3% 2.7% 95.1% 4.9% 1.2% -1.2% 1.5% -1.5% Non PRI-managed 98.4% 1.6% 97.6% 2.4% -0.9% 0.9% -1.3% 1.3% --------- --------- --------- --------- --------- --------- --------- --------- Same Properties/ Existing 97.9% 2.1% 96.7% 3.3% -1.5% 1.5% -2.4% 2.4% New N/A N/A N/A N/A N/A N/A N/A N/A Redevelopment Properties N/A N/A N/A N/A N/A N/A N/A N/A --------- --------- --------- --------- --------- --------- --------- --------- Q402 ------------------------------------------------- In-Line only In-Line Total w/ Total w/ (Non- (Non- Anchor % Anchor % Anchor) % Anchor) % Leased Available Leased Available --------- --------- --------- --------- Christiana Power Center 100.0% 0.0% 84.3% 15.7% Creekview Shopping Center 100.0% 0.0% 100.0% 0.0% Northeast Tower Center 100.0% 0.0% 31.2% 68.8% Paxton Towne Center 89.7% 10.3% 98.7% 1.3% The Court at Oxford Valley 100.0% 0.0% 93.0% 7.0% Red Rose Commons 99.2% 0.8% 97.1% 2.9% Whitehall Mall 98.0% 2.0% 91.4% 8.6% Metroplex Shopping Center 100.0% 0.0% 70.8% 29.2% --------- --------- --------- --------- Power Centers weighted average 98.0% 2.0% 96.9% 3.1% --------- --------- --------- --------- Wholly Owned Properties 96.2% 3.8% 93.6% 6.4% Joint Venture Properties 99.2% 0.8% 98.9% 1.1% --------- --------- --------- --------- PRI-managed 96.2% 3.8% 93.6% 6.4% Non PRI-managed 99.2% 0.8% 98.9% 1.1% --------- --------- --------- --------- Same Properties/ Existing 99.4% 0.6% 99.1% 0.9% New N/A N/A N/A N/A Redevelopment Properties N/A N/A N/A N/A --------- --------- --------- ---------
PAGE 32 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] Strip Centers (Includes Non-Anchor Owned Space)
Q403 % Change ---------------------------------------------- ---------------------------------------------- Avg Base Rent Avg % Rent Additional Avg Base Rent Avg % Rent Additional psf (1) psf (1) Charges psf psf psf Charges psf ------------- ------------- ------------- ------------- ------------- ------------- Crest Plaza Shopping Center $15.32 $- $2.72 12.5% -100.0% 112.3% Festival at Exton 16.71 - 4.24 0.1% N/A 29.2% The Commons at Magnolia 12.89 0.03 1.63 1.6% -45.9% 474.5% Rio Mall 5.89 - 0.25 -4.8% N/A -23.0% South Blanding Village 8.99 - 2.14 2.2% N/A 0.0% Springfield Park I & II 17.66 - 5.21 6.9% -100.0% -17.1% ------------- ------------- ------------- ------------- ------------- ------------- Strip Centers weighted average $13.81 $0.01 $2.92 2.2% -95.5% 23.9% ------------- ------------- ------------- ------------- ------------- ------------- Wholly Owned Properties $14.32 $0.01 $2.94 2.8% -94.3% 45.8% Joint Venture Properties $12.06 $- $2.85 1.1% -100.0% -21.6% ------------- ------------- ------------- ------------- ------------- ------------- PRI-managed $14.77 $0.01 $3.25 3.5% -95.5% 26.5% Non PRI-managed $5.89 $- $0.25 -4.8% N/A -23.0% ------------- ------------- ------------- ------------- ------------- ------------- Same Properties/Existing $13.67 $- $3.36 -0.6% -100.0% 5.9% New $14.05 $0.02 $2.15 7.9% -95.1% 234.5% Redevelopment Properties $- $- $- N/A N/A N/A ------------- ------------- ------------- ------------- ------------- ------------- Q402 ---------------------------------------------- Avg Base Rent Avg % Rent Additional psf (1) psf (1) Charges psf ------------- ------------- ------------- Crest Plaza Shopping Center $13.62 $0.86 $1.28 Festival at Exton 16.69 - 3.28 The Commons at Magnolia 12.68 0.06 0.28 Rio Mall 6.18 - 0.32 South Blanding Village 8.80 - 2.14 Springfield Park I & II 16.52 0.23 6.28 ------------- ------------- ------------- Strip Centers weighted average $13.51 $0.14 $2.36 ------------- ------------- ------------- Wholly Owned Properties $13.93 $0.14 $2.02 Joint Venture Properties $11.93 $0.13 $3.63 ------------- ------------- ------------- PRI-managed $14.27 $0.15 $2.57 Non PRI-managed $6.18 $- $0.32 ------------- ------------- ------------- Same Properties/Existing $13.75 $0.04 $3.18 New $13.02 $0.35 $0.64 Redevelopment Properties $- $- $- ------------- ------------- -------------
(1) Base rent is actual for Q403. Additional charges and % rent are projections for 2003.
Occupancy Q403 Change in % Occupancy ------------------------------------------------- ------------------------------------------------- In-Line In-Line only In-Line only In-Line Total w/ Total w/ (Non- (Non- Total w/ Total w/ (Non- (Non- Anchor % Anchor % Anchor) % Anchor) % Anchor % Anchor % Anchor) % Anchor) % Leased Available Leased Available Leased Available Leased Available --------- --------- --------- --------- --------- --------- --------- --------- Crest Plaza Shopping Center 85.8% 14.2% 75.3% 24.7% 39.0% -39.0% 44.1% -44.1% Festival at Exton 95.5% 4.5% 92.3% 7.7% -3.7% 3.7% -6.4% 6.4% The Commons at Magnolia 97.6% 2.4% 95.3% 4.7% 1.1% -1.1% 2.3% -2.3% 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% 0.3% -0.3% 2.7% -2.7% --------- --------- --------- --------- --------- --------- --------- --------- Strip Centers weighted average 94.8% 5.2% 87.2% 12.8% 7.8% -7.8% 12.5% -12.5% --------- --------- --------- --------- --------- --------- --------- --------- Wholly Owned Properties 94.2% 5.8% 88.4% 11.6% 11.9% -11.9% 15.1% -15.1% Joint Venture Properties 95.8% 4.2% 83.3% 16.7% 0.2% -0.2% 2.9% -2.9% --------- --------- --------- --------- --------- --------- --------- --------- PRI-managed 93.5% 6.5% 86.0% 14.0% 9.6% -9.6% 13.1% -13.1% 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% -0.9% 0.9% -2.2% 2.2% New 91.6% 8.4% 84.6% 15.4% 24.9% -24.9% 30.3% -30.3% Redevelopment Properties 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% --------- --------- --------- --------- --------- --------- --------- --------- Q402 ------------------------------------------------- In-Line only In-Line Total w/ Total w/ (Non- (Non- Anchor % Anchor % Anchor) % Anchor) % Leased Available Leased Available --------- --------- --------- --------- Crest Plaza Shopping Center 46.8% 53.2% 31.2% 68.8% Festival at Exton 99.3% 0.7% 98.7% 1.3% The Commons at Magnolia 96.5% 3.5% 93.0% 7.0% 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% 70.8% 29.2% --------- --------- --------- --------- Strip Centers weighted average 87.1% 12.9% 74.7% 25.3% --------- --------- --------- --------- Wholly Owned Properties 82.3% 17.7% 73.3% 26.7% Joint Venture Properties 95.7% 4.3% 80.5% 19.5% --------- --------- --------- --------- PRI-managed 83.9% 16.1% 72.9% 27.1% Non PRI-managed 99.6% 0.4% 97.1% 2.9% --------- --------- --------- --------- Same Properties/ Existing 97.0% 3.0% 91.0% 9.0% New 66.8% 33.2% 54.3% 45.7% Redevelopment Properties 0.0% 0.0% 0.0% 0.0% --------- --------- --------- ---------
PAGE 33 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] Retail Portfolio (Includes Non-Anchor Owned Space)
Q403 % Change ------------------------------------------------ ------------------------------------------------ Additional Additional Avg Base Avg % Charges Avg Base Avg % Charges psf Rent psf (1) Rent psf (1) psf (1) Rent psf (1) Rent psf (1) (1) ------------- ------------- ------------- ------------- ------------- ------------- Enclosed Malls weighted average $21.88 $0.74 $8.16 -7.58% -17.68% -10.78% Power Centers weighted average $15.22 $0.06 $3.17 0.41% 34.58% 15.63% Strip Centers weighted average $13.81 $0.01 $2.92 2.17% -95.54% 23.91% ------------- ------------- ------------- ------------- ------------- ------------- Retail Portfolio weighted average (2) $20.60 $0.61 $7.22 7.0% 30.2% 23.0% ------------- ------------- ------------- ------------- ------------- ------------- Wholly Owned Properties (2) $20.48 $0.69 $7.21 16.4% 6.2% 39.9% Joint Venture Properties $21.08 $0.31 $7.25 2.4% -6.1% 12.4% ------------- ------------- ------------- ------------- ------------- ------------- PRI-managed (2) $21.06 $0.68 $7.66 3.6% 7.1% 9.3% Non PRI-managed $18.19 $0.26 $4.92 1.6% -1.3% 10.5% ------------- ------------- ------------- ------------- ------------- ------------- Same Properties/Existing $17.71 $0.34 $4.88 -3.3% -36.0% -9.2% New $21.67 $0.71 $8.09 0.0% 139.8% 12.8% Redevelopment Properties (2) $23.61 $1.11 $9.70 11.0% -5.0% 13.0% ------------- ------------- ------------- ------------- ------------- ------------- Q402 ------------------------------------------------ Avg Base Additional Rent Avg % Charges psf psf (1) Rent psf (1) (1) ------------- ------------- ------------- Enclosed Malls weighted average $19.77 $1.20 $7.67 Power Centers weighted average $15.15 $0.04 $2.75 Strip Centers weighted average $13.51 $0.14 $2.36 ------------- ------------- ------------- Retail Portfolio weighted average (2) $19.25 $0.47 $5.87 ------------- ------------- ------------- Wholly Owned Properties (2) $17.59 $0.65 $5.15 Joint Venture Properties $20.59 $0.33 $6.45 ------------- ------------- ------------- PRI-managed (2) $20.33 $0.64 $7.00 Non PRI-managed $17.90 $0.27 $4.45 ------------- ------------- ------------- Same Properties/Existing $18.32 $0.54 $5.37 New $21.66 $0.30 $7.17 Redevelopment Properties (2) $21.27 $1.17 $8.58 ------------- ------------- -------------
(1) Base rent is actual for Q303. Additional charges and % rent are projections for 2003. (2) Magnolia Mall and Prince Georges Plaza are classified as Redevelopment Properties and are not included in the weighted average.
Occupancy Q403 Change in % Occupancy ------------------------------------------------- ------------------------------------------------- In-Line In-Line only In-Line only In-Line Total w/ Total w/ (Non- (Non- Total w/ Total w/ (Non- (Non- Anchor % Anchor % Anchor) % Anchor) % Anchor % Anchor % Anchor) % Anchor) % Leased Available Leased Available Leased Available Leased Available --------- --------- --------- --------- --------- --------- --------- --------- Enclosed Malls weighted average 90.50% 9.50% 87.35% 12.65% -1.19% 1.19% -2.58% 2.58% Power Centers weighted average 97.92% 2.08% 96.69% 3.31% -0.06% 0.06% -0.22% 0.22% Strip Centers weighted average 94.83% 5.17% 87.16% 12.84% 7.77% -7.77% 12.49% -12.49% --------- --------- --------- --------- --------- --------- --------- --------- Retail Portfolio weighted average (1) 91.5% 8.5% 88.8% 11.2% -1.9% 1.9% -3.1% 3.1% --------- --------- --------- --------- --------- --------- --------- --------- Wholly Owned Properties (1) 90.4% 9.6% 87.4% 12.6% 1.1% -1.1% -0.3% 0.3% Joint Venture Properties 96.9% 3.1% 94.5% 5.5% -0.5% 0.5% -1.0% 1.0% --------- --------- --------- --------- --------- --------- --------- --------- PRI-managed (1) 90.8% 9.2% 87.6% 12.4% 0.1% -0.1% -0.5% 0.5% Non PRI-managed 97.0% 3.0% 95.0% 5.0% -1.1% 1.1% -1.8% 1.8% --------- --------- --------- --------- --------- --------- --------- --------- Same Properties/Existing 95.4% 4.6% 94.5% 5.5% 0.6% -0.6% -0.5% 0.5% New 90.3% 9.7% 86.8% 13.2% 0.2% -0.2% 2.3% -2.3% Redevelopment Properties (1) 91.1% 8.9% 89.9% 10.1% -3.4% 3.4% 4.1% -4.1% --------- --------- --------- --------- --------- --------- --------- --------- Q402 ------------------------------------------------- In-Line only In-Line Total w/ Total w/ (Non- (Non- Anchor % Anchor % Anchor) % Anchor) % Leased Available Leased Available --------- --------- --------- --------- Enclosed Malls weighted average 91.69% 8.31% 89.93% 10.07% Power Centers weighted average 97.98% 2.02% 96.91% 3.09% Strip Centers weighted average 87.05% 12.95% 74.68% 25.32% --------- --------- --------- --------- Retail Portfolio weighted average (1) 93.5% 6.5% 91.8% 8.2% --------- --------- --------- --------- Wholly Owned Properties (1) 89.3% 10.7% 87.7% 12.3% Joint Venture Properties 97.4% 2.6% 95.4% 4.6% --------- --------- --------- --------- PRI-managed (1) 90.7% 9.3% 88.2% 11.8% Non PRI-managed 98.1% 1.9% 96.8% 3.2% --------- --------- --------- --------- Same Properties/Existing 94.8% 5.2% 95.0% 5.0% New 90.2% 9.8% 84.5% 15.5% Redevelopment Properties (1) 94.5% 5.5% 85.8% 14.2% --------- --------- --------- ---------
(1) Magnolia Mall and Prince Georges Plaza are classified as Redevelopment Properties and are not included in the weighted average. (2) Westgate Anchor Pad consists of a 108,100 sf. Bon-Ton Store for which PREIT receives $307,003/yr ($2.84/sf) and is not included in the Occupancy and Rent reports. PAGE 34 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) PREIT Services, LLC/ PREIT-RUBIN Inc. [GRAPHIC OMITTED] [GRAPHIC OMITTED] PREIT Services, LLC and PREIT-RUBIN Inc. are the Trust's arms for comprehensive development and management of retail 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
December 31, 2003 ------------------------------------------------------------------------------------------------------------- Retail Multifamily Office/Industrial TOTAL ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- # sq ft # sq ft # sq ft # sq ft ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Managed Portfolio PREIT-Owned (1) 47 29,177,969 - - 4 254,791 51 29,432,760 Non-PREIT Owned (1) 12 3,340,284 - - 3 757,238 15 4,097,522 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL 59 32,518,253 - - 7 1,012,029 66 33,530,282 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 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 4,257,467 - - - - 7 4,257,467 Non-PREIT Owned - - - - - - - - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL 7 4,257,467 - - - - 7 4,257,467 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total Portfolio PREIT-Owned 54 33,435,436 - - 4 254,791 58 33,690,227 Non-PREIT Owned 13 3,844,000 - - 4 876,720 17 4,720,720 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL 67 37,279,436 - - 8 1,131,511 75 38,410,947 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 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) 12 3,338,954 - - 3 757,238 15 4,096,192 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL 33 16,729,585 0 - 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 4,254,976 - - - - 7 4,254,976 Non-PREIT Owned - - - - - - - - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL 7 4,254,976 - - - - 7 4,254,976 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total Portfolio PREIT-Owned 28 17,645,607 - - 4 254,791 32 17,900,398 Non-PREIT Owned 13 3,842,670 - - 4 876,720 17 4,719,390 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL 41 21,488,277 - - 8 1,131,511 49 22,619,788 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
NET GAIN (LOSS) IN CONTRACTS ------------------------------------------------------------------------------------------------------------- Retail Multifamily Office/Industrial TOTAL ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- # sq ft # sq ft # sq ft # sq ft ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Managed Portfolio PREIT-Owned (1) 26 15,787,338 - - - - 26 15,787,338 Non-PREIT Owned (1) - 1,330 - - - - - 1,330 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL 26 15,788,668 - - - - 26 15,788,668 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Leased Portfolio PREIT-Owned - - - - - - - - Non-PREIT Owned - - - - - - - - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL - - - - - - - - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Asset Managed Portfolio PREIT-Owned (1) - 2,491 - - - - - 2,491 Non-PREIT Owned - - - - - - - - ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL - 2,491 - - - - - 2,491 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total Portfolio PREIT-Owned 26 15,789,829 - - - - 26 15,789,829 Non-PREIT Owned - 1,330 - - - - - 1,330 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL 26 15,791,159 - - - - 26 15,791,159 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(1) The increase in PREIT owned GLA resulted from the merger with Crown American Realty Trust. PAGE 35 Pennsylvania REIT FLASH REPORT (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] Quarterly Comparison Financial Statement
Q4 03 (3 months ended 12/31/03) ------------------------------------------------------------------------------- Corporate/ Other Retail Multifamily Properties TOTAL % Change ------------- ------------- ------------- ------------- ------------- Real Estate Revenues: Same Store $20,404,299 $0 $84,770 $20,489,069 3.5% New 62,955,052 - - 62,955,052 N/A Redevelopment 6,695,196 - - 6,695,196 N/A Discontinued Operations - 2,248 - 2,248 --------------------------------------------------------------------------------------------------------------------------------- Total Real Estate Revenues 90,054,546 2,248 84,770 90,141,564 108.3% --------------------------------------------------------------------------------------------------------------------------------- Operating Expenses (includes minority interest in properties): Same Store 5,632,027 - 2,890 5,634,917 8.4% New 24,433,318 - - 24,433,318 N/A Redevelopment 2,320,331 - - 2,320,331 N/A Discontinued Operations - 14,504 14,504 -99.8% --------------------------------------------------------------------------------------------------------------------------------- Total Operating Expenses 32,385,676 14,504 2,890 32,403,070 120.6% --------------------------------------------------------------------------------------------------------------------------------- NOI: Same Store 14,772,272 - 81,880 14,854,152 1.7% New 38,521,734 - - 38,521,734 N/A Redevelopment 4,374,865 - - 4,374,865 N/A Discontinued Operations - (12,256) - (12,256) -100.1% --------------------------------------------------------------------------------------------------------------------------------- NOI (2) 57,668,870 (12,256) 81,880 57,738,494 101.9% --------------------------------------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSES): Management Company Revenue - - 4,048,766 4,048,766 -4.4% Interest Income - - 335,524 335,524 74.8% General & Administrative Corporate Payroll - - (9,538,925) (9,538,925) 180.9% Other G&A Expenses - - (8,461,798) (8,461,798) 180.9% --------------------------------------------------------------------------------------------------------------------------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 57,668,870 (12,256) (13,534,553) 44,122,061 65.8% --------------------------------------------------------------------------------------------------------------------------------- Interest Expense (15,298,177) - (1,033,909) (16,332,086) 48.8% Depreciation and Amortization (19,148,187) - (12,540) (19,160,727) 155.4% Gain(loss) on Sale of Interests in RE - 4,457,176 4,457,176 N/A DISCONTINUED OPERATIONS Income from Disposed Real Estate - - - - N/A Minority Interest of O.P. Unitholders - - (580,392) (580,392) N/A Gain(loss) on Disposition of Discontinued Operations 194,441 - 194,441 N/A --------------------------------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - 194,441 (580,392) (385,951) N/A --------------------------------------------------------------------------------------------------------------------------------- Extraordinary item(Loss on early extinguishment of debt) - - - - N/A Minority Interest of O.P. Unit Holders - - (1,198,594) (1,198,594) 51.9% --------------------------------------------------------------------------------------------------------------------------------- NET INCOME 23,222,506 4,639,361 (16,359,988) 11,501,879 56.9% --------------------------------------------------------------------------------------------------------------------------------- Gain on Sale of Real Estate - (4,651,617) - (4,651,617) N/A Depreciation and Amor. of Real Estate 19,148,187 - (52,460) 19,095,727 156.7% Dividends on preferred shares (1,533,000) (1,533,000) N/A FFO Adjustments - - 1,778,986 1,778,986 127.3% --------------------------------------------------------------------------------------------------------------------------------- FFO 42,370,693 (12,256) (16,166,462) 26,191,975 68.4% --------------------------------------------------------------------------------------------------------------------------------- Adj. Straight Lining of Base Rents (1,055,305) - - (1,055,305) 254.3% Recurring Capital Expenditures (442,327) - (442,327) -30.6% Amortization of debt premium (2,933,065) (2,933,065) N/A --------------------------------------------------------------------------------------------------------------------------------- FAD $37,939,996 -$12,256 (16,166,462) $21,761,278 48.9% --------------------------------------------------------------------------------------------------------------------------------- Dividends for Common Shares and O.P Units $15,534,398 66.3% Share Price (at close) $36.30 39.6% Weighted Average Number of Shares 28,786,801 75.0% WA number of Shares and O.P. Units 31,744,396 74.3% --------------------------------------------------------------------------------------------------------------------------------- Net Income/Share $0.35 -21.5% FFO/Share and O.P. Units $0.83 -3.4% FAD/Share and O.P. Units $0.69 -14.6% Dividend/Share and O.P. Units $0.54 5.9%
Q4 02 (3 months ended 12/31/02) --------------------------------------------------------------- Corporate/ Other Retail Multifamily Properties TOTAL ------------- ------------- ------------- ------------- Real Estate Revenues: Same Store $19,722,387 $0 $82,858 $19,805,245 New 2,055,325 - - 2,055,325 Redevelopment 6,493,056 - - 6,493,056 Discontinued Operations - 14,928,033 - 14,928,033 ----------------------------------------------------------------------------------------------------------------- Total Real Estate Revenues 28,270,768 14,928,033 82,858 43,281,659 ----------------------------------------------------------------------------------------------------------------- Operating Expenses (includes minority interest in properties): Same Store 5,194,361 - 3,558 5,197,919 New 959,949 - - 959,949 Redevelopment 2,157,149 - - 2,157,149 Discontinued Operations - 6,372,745 6,372,745 ----------------------------------------------------------------------------------------------------------------- Total Operating Expenses 8,311,459 6,372,745 3,558 14,687,762 ----------------------------------------------------------------------------------------------------------------- NOI: Same Store 14,528,026 - 79,300 14,607,326 New 1,095,376 - - 1,095,376 Redevelopment 4,335,907 - - 4,335,907 Discontinued Operations - 8,555,288 8,555,288 ----------------------------------------------------------------------------------------------------------------- NOI (2) 19,959,309 8,555,288 79,300 28,593,897 ----------------------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSES): Management Company Revenue - - 4,233,533 4,233,533 Interest Income - - 191,895 191,895 General & Administrative Corporate Payroll - - (3,395,954) (3,395,954) Other G&A Expenses - - (3,012,605) (3,012,605) ----------------------------------------------------------------------------------------------------------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 19,959,309 8,555,288 (1,903,831) 26,610,766 ----------------------------------------------------------------------------------------------------------------- Interest Expense (7,306,699) (3,670,036) - (10,976,735) Depreciation and Amortization (5,074,812) (2,415,300) (12,915) (7,503,027) Gain(loss) on Sale of Interests in RE - - - - DISCONTINUED OPERATIONS Income from Disposed Real Estate (17,217) - - (17,217) Minority Interest of O.P. Unitholders - - 6,605 6,605 Gain(loss) on Disposition of Discontinued Operations - - - - ----------------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS (17,217) - 6,605 (10,612) ----------------------------------------------------------------------------------------------------------------- Extraordinary item(Loss on early extinguishment of debt) - - - Minority Interest of O.P. Unit Holders - - (789,137) (789,137) ----------------------------------------------------------------------------------------------------------------- NET INCOME 7,560,581 2,469,952 (2,699,278) 7,331,255 ----------------------------------------------------------------------------------------------------------------- Gain on Sale of Real Estate - - - - Depreciation and Amor. of Real Estate 5,074,812 2,415,300 (52,085) 7,438,027 Dividends on preferred shares FFO Adjustments - - 782,532 782,532 ----------------------------------------------------------------------------------------------------------------- FFO 12,635,393 4,885,252 (1,968,831) 15,551,814 ----------------------------------------------------------------------------------------------------------------- Adj. Straight Lining of Base Rents (297,854) - - (297,854) Recurring Capital Expenditures (20,930) (616,160) - (637,090) Amortization of debt premium - - - - ----------------------------------------------------------------------------------------------------------------- FAD $12,316,609 $4,269,092 ($1,968,831) $14,616,870 ----------------------------------------------------------------------------------------------------------------- Dividends for Common Shares and O.P Units $9,343,863 Share Price (at close) $26.00 Weighted Average Number of Shares 16,450,912 WA number of Shares and O.P. Units 18,209,542 ----------------------------------------------------------------------------------------------------------------- Net Income/Share $0.45 FFO/Share and O.P. Units $0.85 FAD/Share and O.P. Units $0.80 Dividend/Share and O.P. Units $0.51
Balance Sheet
Q4 03 --------------------------------------------------------------------- -------------- Corporate/ Other Retail Multifamily Properties Total % Change -------------- -------------- -------------- -------------- -------------- Investment in Real Estate, at cost $2,515,861,018 $- $24,241,202 $2,540,102,220 166.5% Accumulated Depreciation (107,991,580) - (2,076,771) (110,068,351) -39.0% Investment in and advances to Partnership and JVs - - - - -100.0% Other Assets 295,585,275 - 73,553,486 369,138,761 252.3% --------------------------------------------------------------------------------------------------------------------------------- Total Assets $2,703,454,713 $0 $95,717,917 $2,799,172,630 219.0% --------------------------------------------------------------------------------------------------------------------------------- Mortgage Notes $1,396,262,538 $- $- $1,396,262,538 187.0% Line of Credit - - 170,000,000 170,000,000 30.0% Acquisition Term Loan & Unsecured Line of Credit - - - - N/A Other Liabilities 51,945,310 - 44,679,642 96,624,952 143.7% --------------------------------------------------------------------------------------------------------------------------------- Total Liabilities $1,448,207,848 $0 $214,679,642 $1,662,887,490 153.1% --------------------------------------------------------------------------------------------------------------------------------- Minority Interest $8,590,979 - $104,060,548 $112,651,527 246.9% Total Shareholders Equity - - 1,023,633,613 1,023,633,613 444.4% --------------------------------------------------------------------------------------------------------------------------------- Total Liabilities and Shareholder Equity $1,456,798,827 $0 $1,342,373,803 $2,799,172,630 219.0% Q4 02 --------------------------------------------------------------------- Corporate/ Other Retail Multifamily Properties Total -------------- -------------- -------------- -------------- Investment 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) Investment in and advances to Partnership and JVs - - 105,309 105,309 Other Assets 50,941,989 12,728,458 41,114,121 104,784,568 ----------------------------------------------------------------------------------------------------------------- Total Assets $592,166,742 $218,717,763 $66,524,001 $877,408,506 ----------------------------------------------------------------------------------------------------------------- Mortgage Notes $280,092,311 $206,387,459 $- $486,479,770 Line of Credit 94,712,082 2,500,000 33,587,919 130,800,000 Acquisition Term Loan & Unsecured Line of Credit - - - - Other Liabilities 14,288,005 5,270,638 20,085,119 39,643,762 ----------------------------------------------------------------------------------------------------------------- Total Liabilities $389,092,398 $214,158,097 $53,673,038 $656,923,532 ----------------------------------------------------------------------------------------------------------------- Minority Interest $126,715 - $32,345,722 $32,472,437 Total Shareholders Equity - - 188,012,537 188,012,537 ----------------------------------------------------------------------------------------------------------------- Total Liabilities and Shareholder Equity $389,219,113 $214,158,097 $274,031,297 $877,408,506
Ratios
Q4 03 Change Q4 02 --------------- -------------- ----------------- NOI/Investment in Real Estate 2.3% -0.7% 3.0% Total Dividends/Total FFO 59.3% -0.8% 60.1% Dividends/FFO per share 65.4% 5.7% 59.7%
NOTE: Reconciliation to GAAP is on pages 38 to 43. PAGE 36 Pennsylvania REIT FLASH REPORT (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] Yearly Comparison Financial Statement
CY 12/31/03 (12 months ended 12/31/03) --------------------------------------------------------------------- Corporate/ Other Retail Multifamily Properties TOTAL % Change -------------- -------------- -------------- -------------- -------------- Real Estate Revenues: Same Store $63,595,386 $0 $339,018 $63,934,404 3.0% New 123,221,635 - - 123,221,635 N/A Redevelopment 22,684,353 - - 22,684,353 N/A Discontinued Operations - 26,897,382 - 26,897,382 -------------- -------------- -------------- -------------- -------------- Total Real Estate Revenues 209,501,373 26,897,382 339,018 236,737,773 49.5% -------------- -------------- -------------- -------------- -------------- Operating Expenses (includes minority interest in properties): Same Store 17,134,830 - 15,789 17,150,619 11.7% New 50,739,722 - - 50,739,722 N/A Redevelopment 7,908,329 - - 7,908,329 N/A Discontinued Operations - 12,430,545 12,430,545 -48.4% -------------- -------------- -------------- -------------- -------------- Total Operating Expenses 75,782,881 12,430,545 15,789 88,229,215 67.5% -------------- -------------- -------------- -------------- -------------- NOI: Same Store 46,460,556 - 323,229 46,783,785 0.1% New 72,481,913 - - 72,481,913 N/A Redevelopment 14,776,024 - - 14,776,024 N/A Discontinued Operations - 14,466,837 - 14,466,837 -56.8% -------------- -------------- -------------- -------------- -------------- NOI (2) 133,718,492 14,466,837 323,229 148,508,558 40.6% -------------- -------------- -------------- -------------- -------------- OTHER INCOME (EXPENSES): Management Company Revenue - - 11,994,203 11,994,203 9.0% Interest Income - - 887,180 887,180 24.8% General & Administrative Corporate Payroll - - (20,830,685) (20,830,685) 47.3% Other G&A Expenses - - (19,336,946) (19,336,946) 82.3% -------------- -------------- -------------- -------------- -------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 133,718,492 14,466,837 (26,963,019) 121,222,310 30.9% -------------- -------------- -------------- -------------- -------------- Interest Expense (39,240,910) (5,652,058) (7,466,709) (52,359,677) 25.6% Depreciation and Amortization (42,490,065) (2,454,834) (51,158) (44,996,057) 55.9% Gain(loss) on Sale of Interests in RE 1,111,692 15,087,618 16,199,310 N/A DISCONTINUED OPERATIONS Income from Disposed Real Estate - - - - N/A Minority Interest in properties Minority Interest of O.P. Unitholders - - (18,848,730) (18,848,730) N/A Gain(loss) on Disposition of Discontinued Operations 178,121,005 - 178,121,005 N/A -------------- -------------- -------------- -------------- -------------- TOTAL DISCONTINUED OPERATIONS - 178,121,005 (18,848,730) 159,272,275 N/A -------------- -------------- -------------- -------------- -------------- Extraordinary item(Loss on early extinguishment of debt) - - - - N/A Minority Interest of O.P. Unit Holders - - (3,298,010) (3,298,010) 161.2% -------------- -------------- -------------- -------------- -------------- NET INCOME 53,099,209 199,568,568 (56,627,626) 196,040,151 727.9% -------------- -------------- -------------- -------------- -------------- Gain on Sale of Real Estate (1,111,692) (193,208,623) - (194,320,315) N/A Depreciation and Amor. of Real Estate 42,490,065 2,454,834 (208,842) 44,736,057 56.4% Dividends on preferred shares (1,533,000) (1,533,000) N/A FFO Adjustments - - 22,146,740 22,146,740 643.9% -------------- -------------- -------------- -------------- -------------- FFO 94,477,582 8,814,779 (36,222,728) 67,069,633 31.1% -------------- -------------- -------------- -------------- -------------- Adj. Straight Lining of Base Rents (2,805,547) - - (2,805,547) 169.3% Recurring Capital Expenditures (646,468) (1,285,473) - (1,931,941) -33.5% Amortization of debt premium (5,940,175) (5,940,175) N/A -------------- -------------- -------------- -------------- -------------- FAD $85,085,392 $7,529,306 (36,222,728) $56,391,970 19.4% -------------- -------------- -------------- -------------- -------------- Dividends for Common Shares and O.P Units $46,892,620 27.0% Share Price (at close) $36.30 39.6% Weighted Average Number of Shares 20,389,577 26.2% WA number of Shares and O.P. Units 22,693,026 26.3% -------------- -------------- Net Income/Share $9.54 551.2% FFO/Share and O.P. Units $2.96 3.8% FAD/Share and O.P. Units $2.48 -5.5% Dividend/Share and O.P. Units $2.07 1.5% -------------- --------------
CY 12/31/02 (12 months ended 12/31/02) --------------------------------------------------------------------- Corporate/ Other Retail Multifamily Properties TOTAL -------------- -------------- -------------- -------------- Real Estate Revenues: Same Store $61,763,751 $0 $328,878 $62,092,629 New 16,486,521 - - 16,486,521 Redevelopment 22,143,145 - - 22,143,145 Discontinued Operations - 57,582,151 - 57,582,151 -------------- -------------- -------------- -------------- Total Real Estate Revenues 100,393,417 57,582,151 328,878 158,304,446 -------------- -------------- -------------- -------------- Operating Expenses (includes minority interest in properties): Same Store 15,329,244 - 23,477 15,352,721 New 5,607,334 - - 5,607,334 Redevelopment 7,597,365 - - 7,597,365 Discontinued Operations - 24,103,080 24,103,080 -------------- -------------- -------------- -------------- Total Operating Expenses 28,533,943 24,103,080 23,477 52,660,500 -------------- -------------- -------------- -------------- NOI: Same Store 46,434,507 - 305,401 46,739,908 New 10,879,187 - - 10,879,187 Redevelopment 14,545,780 - - 14,545,780 Discontinued Operations - 33,479,071 33,479,071 -------------- -------------- -------------- -------------- NOI (2) 71,859,474 33,479,071 305,401 105,643,946 -------------- -------------- -------------- -------------- OTHER INCOME (EXPENSES): Management Company Revenue - - 11,002,570 11,002,570 Interest Income - - 710,687 710,687 General & Administrative Corporate Payroll - - (14,137,939) (14,137,939) Other G&A Expenses - - (10,608,902) (10,608,902) -------------- -------------- -------------- -------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 71,859,474 33,479,071 (12,728,183) 92,610,362 -------------- -------------- -------------- -------------- Interest Expense (27,541,955) (14,258,905) 103,931 (41,696,929) Depreciation and Amortization (19,502,954) (9,302,914) (51,660) (28,857,528) Gain(loss) on Sale of Interests in RE 4,085,164 - - 4,085,164 DISCONTINUED OPERATIONS Income from Disposed Real Estate 151,875 - - 151,875 Minority Interest in properties Minority Interest of O.P. Unitholders - - (1,352,412) (1,352,412) Gain(loss) on Disposition of Discontinued Operations - - - - -------------- -------------- -------------- -------------- TOTAL DISCONTINUED OPERATIONS 151,875 - (1,352,412) (1,200,537) -------------- -------------- -------------- -------------- Extraordinary item(Loss on early extinguishment of debt) - - - Minority Interest of O.P. Unit Holders - - (1,262,556) (1,262,556) -------------- -------------- -------------- -------------- NET INCOME 29,051,604 9,917,252 (15,290,880) 23,677,976 -------------- -------------- -------------- -------------- Gain on Sale of Real Estate (4,085,164) - - (4,085,164) Depreciation and Amor. of Real Estate 19,502,954 9,302,914 (208,340) 28,597,528 Dividends on preferred shares FFO Adjustments - - 2,976,919 2,976,919 -------------- -------------- -------------- -------------- FFO 44,469,394 19,220,166 (12,522,301) 51,167,259 -------------- -------------- -------------- -------------- Adj. Straight Lining of Base Rents (1,041,694) - - (1,041,694) Recurring Capital Expenditures (113,759) (2,789,878) - (2,903,637) Amortization of debt premium - - - - -------------- -------------- -------------- -------------- FAD $43,313,941 $16,430,288 ($12,522,301) $47,221,928 -------------- -------------- -------------- -------------- Dividends for Common Shares and O.P Units $36,909,429 Share Price (at close) $26.00 Weighted Average Number of Shares 16,162,327 WA number of Shares and O.P. Units 17,967,106 -------------- Net Income/Share $1.47 FFO/Share and O.P. Units $2.85 FAD/Share and O.P. Units $2.63 Dividend/Share and O.P. Units $2.04 --------------
Ratios
CY 12/31/03 Change CY 12/31/02 -------------------- -------------------- -------------------- NOI/Investment in Real Estate 5.8% -5.2% 11.1% Total Dividends/Total FFO 69.9% -2.2% 72.1% Dividends/FFO per share 70.0% -1.6% 71.6%
NOTE: Reconciliation to GAAP is on pages 38 to 43. PAGE 37 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] BALANCE SHEET-RECONCILIATION TO GAAP (Wholly Owned vs. JVs)
December 31, 2003 -------------------------------------------------------------------------------------------- Combined Adjustments to Assets Held TOTAL (1) Equity Method Subtotal for Sale TOTAL --------------- --------------- --------------- --------------- --------------- ASSETS Investments in Real Estate, at cost Retail Properties $2,515,861,018 $(133,107,107) $2,382,753,911 $(118,887,475) $2,263,866,436 Multifamily Properties - - - - - Industrial Properties 2,504,211 - 2,504,211 - 2,504,211 Construction In Progress 21,736,991 (1,506,178) 20,230,813 - 20,230,813 --------------- --------------- --------------- --------------- --------------- TOTAL INVESTMENTS IN REAL ESTATE 2,540,102,220 (134,613,285) 2,405,488,935 (118,887,475) 2,286,601,460 Accumulated Depreciation (110,068,351) 31,652,085 (78,416,266) - (78,416,266) --------------- --------------- --------------- --------------- --------------- Net Real Estate 2,430,033,869 (102,961,200) 2,327,072,669 (118,887,475) 2,208,185,194 --------------- --------------- --------------- --------------- --------------- Investment in and advances to Partnerships and JVs - 13,108,951 13,108,951 - 13,108,951 --------------- --------------- --------------- --------------- --------------- 2,430,033,869 (89,852,249) 2,340,181,620 (118,887,475) 2,221,294,145 --------------- --------------- --------------- --------------- --------------- Allowance for Possible Losses --------------- --------------- --------------- --------------- --------------- 2,430,033,869 (89,852,249) 2,340,181,620 (118,887,475) 2,221,294,145 --------------- --------------- --------------- --------------- --------------- Other Assets: Cash and Cash Equivalents 52,534,598 (3,905,956) 48,628,642 48,628,642 Rents and Other Receivables 35,665,968 (7,991,132) 27,674,836 - 27,674,836 Assets held for sale 37,686,662 - 37,686,662 118,887,475 156,574,137 Intangible Assets (2) 181,544,375 - 181,544,375 - 181,544,375 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 61,707,158 (11,942,818) 49,764,340 49,764,340 --------------- --------------- --------------- --------------- --------------- TOTAL OTHER ASSETS 369,138,761 (23,839,906) 345,298,855 118,887,475 464,186,330 --------------- --------------- --------------- --------------- --------------- TOTAL ASSETS 2,799,172,630 (113,692,155) 2,685,480,475 - 2,685,480,475 =============== =============== =============== =============== =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 1,320,774,295 (109,581,659) 1,211,192,636 (61,138,707) 1,150,053,929 Mortgage Debt Premium (3) 75,488,243 - 75,488,243 (4,361,443) 71,126,800 Bank Loans Payable 170,000,000 - 170,000,000 - 170,000,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Construction Loans - - - - - Assets held for sale 5,840,385 - 5,840,385 65,500,150 71,340,535 Other Liabilities (4) 90,784,568 (4,110,496) 86,674,072 86,674,072 --------------- --------------- --------------- --------------- --------------- TOTAL LIABILITIES 1,662,887,491 (113,692,155) 1,549,195,336 - 1,549,195,336 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Minority Interest 112,651,526 - 112,651,526 - 112,651,526 --------------- --------------- --------------- --------------- --------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par 35,544,280 - 35,544,280 - 35,544,280 Preferred Shares $0.01 Par 24,750 - 24,750 - 24,750 Capital Contributed in Excess of Par 877,444,615 - 877,444,615 - 877,444,615 Restricted Stock (3,195,777) - (3,195,777) - (3,195,777) Other Comprehensive Income (2,005,840) - (2,005,840) - (2,005,840) Retained Earnings (Distributions in Excess of Net Income) 115,821,585 - 115,821,585 - 115,821,585 --------------- --------------- --------------- --------------- --------------- TOTAL SHAREHOLDERS' EQUITY 1,023,633,613 - 1,023,633,613 - 1,023,633,613 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,799,172,630 $(113,692,155) $2,685,480,475 $- $2,685,480,475 =============== =============== =============== =============== ===============
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 (2) 55,957,597 - 55,957,597 - 55,957,597 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 53,730,566 (12,102,884) 41,627,682 - 41,627,682 --------------- --------------- --------------- --------------- --------------- TOTAL OTHER ASSETS 175,110,969 (25,786,599) 149,324,370 - 149,324,370 --------------- --------------- --------------- --------------- --------------- TOTAL ASSETS 1,389,003,187 (122,991,681) 1,266,011,506 - 1,266,011,506 =============== =============== =============== =============== =============== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 739,061,360 (118,525,862) 620,535,498 - 620,535,498 Mortgage Debt Premium (3) Bank Loans Payable - - - - - Acquisition Term Loan & Unsecured Line of Credit - - - - - Construction Loans - - - - - Assets held for sale 951,750 (36,458) 915,292 - 915,292 Other Liabilities (4) 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 Preferred Shares $0.01 Par 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 (2) 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 Mortgage Debt Premium (3) Bank Loans Payable 130,800,000 - 130,800,000 - 130,800,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Construction Loans - - - - - Assets held for sale - - - - - Other Liabilities (4) 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 Preferred Shares $0.01 Par 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 =============== =============== =============== =============== ===============
(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) Includes value of acquired in-place leases and above-market value of leases recorded in connection with the acquisition of properties in 2002 and 2003. Purchase accounting rules require a purchaser to separately value the leases that are in place at the acquisition date, as well as the above- or below-market values of the leases. (3) Represents premium that is recorded in connection with debt assumed in connection with property purchases. The debt is market to market at the acquisition date and the premium is amortized through interest expense over the remaining term of the debt. (4) 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. PAGE 38 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] INCOME STATEMENT-RECONCILIATION TO GAAP (1) Quarterly Comparison (Wholly Owned vs. JV's)
Q4 03 (3 months ended 12/31/03) --------------------------------------------------------------------------- ------------ Adjustments to Combined Equity Assets Held TOTAL % TOTAL (3) Method Subtotal for Sale Total CHANGE ------------ ------------ ------------ ------------ ------------ ------------ REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $56,257,974 $(5,419,424) $50,838,550 $(2,578,149) $48,260,401 282.2% Straight-Lining of Base Rents 1,055,305 3,327 1,058,632 $(25,787) 1,032,845 321.9% Percentage Rents 3,490,813 (15,832) 3,474,981 $(141,500) 3,333,481 225.1% Lease Termination 744,306 - 744,306 (45,556) 698,750 -856.8% Expense Recoveries & Other Income 28,593,166 (2,222,547) 26,370,619 (1,338,280) 25,032,339 453.5% ------------ ------------ ------------ ------------ ------------ ------------ TOTAL REVENUES 90,141,564 (7,654,476) 82,487,088 (4,129,272) 78,357,816 327.6% ------------ ------------ ------------ ------------ ------------ ------------ REAL ESTATE OPERATING EXPENSES Operating and Maintenance 24,323,764 (1,941,169) 22,382,595 (1,581,444) 20,801,151 486.4% Real Estate Taxes 7,695,705 (669,198) 7,026,507 (376,420) 6,650,087 436.3% Minority Interest in properties 383,601 - 383,601 (7,601) 376,000 ------------ ------------ ------------ ------------ ------------ ------------ TOTAL EXPENSES 32,403,070 (2,610,367) 29,792,703 (1,965,465) 27,827,238 481.3% ------------ ------------ ------------ ------------ ------------ ------------ NET OPERATING INCOME 57,738,494 (5,044,109) 52,694,385 (2,163,807) 50,530,578 273.2% ------------ ------------ ------------ ------------ ------------ ------------ OTHER INCOME (EXPENSES) Management Company Revenue 4,048,766 - 4,048,766 4,048,766 -4.4% Interest Income $335,524 - 335,524 335,524 74.8% General & Administrative: Corporate Payroll (9,538,925) - (9,538,925) (9,538,925) 180.9% Other G&A Expenses (8,461,798) - (8,461,798) (8,461,798) 180.9% ------------ ------------ ------------ ------------ ------------ ------------ Earnings before interest expenses, taxes, depreciation and amortization 44,122,061 (5,044,109) 39,077,952 (2,163,807) 36,914,145 219.4% ------------ ------------ ------------ ------------ ------------ ------------ Interest Expense (2) (16,332,086) 2,190,986 (14,141,100) 449,311 (13,691,789) 217.4% Depreciation & Amortization (19,160,727) 1,243,672 (17,917,055) - (17,917,055) 393.8% ------------ ------------ ------------ ------------ ------------ ------------ TOTAL OTHER INCOME (EXPENSES) (35,492,813) 3,434,658 (32,058,155) 449,311 (31,608,844) 298.0% ------------ ------------ ------------ ------------ ------------ ------------ Equity in Income of partnerships and JVs - 1,609,451 1,609,451 1,609,451 ------------ ------------ ------------ ------------ ------------ ------------ Gains (losses) on sales of interests in Real Estate 4,457,176 - 4,457,176 - 4,457,176 N/A ------------ ------------ ------------ ------------ ------------ ------------ Income before Minority Interest 13,086,424 - 13,086,424 (1,714,496) 11,371,928 93.2% ------------ ------------ ------------ ------------ ------------ ------------ Minority Interest of O.P. Unitholders (1,198,594) - (1,198,594) - (1,198,594) 51.9% ------------ ------------ ------------ ------------ ------------ ------------ Income from Operations 11,887,830 - 11,887,830 (1,714,496) 10,173,334 99.6% ------------ ------------ ------------ ------------ ------------ ------------ Discontinued Operations: Income from Discontinued Operations - - - 1,722,097 1,722,097 -22.7% Equity in Income of partnerships and JVs - Minority interest in properties (7,601) (7,601) Minority Interest of O.P. Unitholders (580,392) - (580,392) (580,392) N/A Gain (losses) on Disposition of Discontinued Operations 194,441 - 194,441 194,441 N/A ------------ ------------ ------------ ------------ ------------ ------------ TOTAL DISCONTINUED OPERATIONS (385,951) - (385,951) 1,714,496 1,328,545 N/A ------------ ------------ ------------ ------------ ------------ ------------ Extraordinary item(Loss on early extinguishment of debt) - - - - - N/A ------------ ------------ ------------ ------------ ------------ ------------ NET INCOME $11,501,879 $- $11,501,879 $- $11,501,879 56.9% ------------ ------------ ------------ ------------ ------------ ------------
Q4 02 (3 months ended 12/31/02) --------------------------------------------------------------------------- Adjustments to Combined Equity Assets Held TOTAL (3) Method Subtotal for Sale Total ------------ ------------ ------------ ------------ ------------ REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $33,588,388 $(7,994,055) $25,594,333 $(12,967,473) $12,626,860 Straight-Lining of Base Rents 297,854 (53,050) 244,804 - 244,804 Percentage Rents 1,268,924 (243,602) 1,025,322 1,025,322 Lease Termination (1,538) (36,000) (37,538) (54,791) (92,329) Expense Recoveries & Other Income 8,128,031 (3,032,121) 5,095,910 (573,577) 4,522,333 ------------ ------------ ------------ ------------ ------------ TOTAL REVENUES 43,281,659 (11,358,828) 31,922,831 (13,595,841) 18,326,990 ------------ ------------ ------------ ------------ ------------ REAL ESTATE OPERATING EXPENSES Operating and Maintenance 11,246,386 (3,232,048) 8,014,338 (4,467,242) 3,547,096 Real Estate Taxes 3,441,376 (887,884) 2,553,492 (1,313,385) 1,240,107 Minority Interest in properties ------------ ------------ ------------ ------------ ------------ TOTAL EXPENSES 14,687,762 (4,119,932) 10,567,830 (5,780,627) 4,787,203 ------------ ------------ ------------ ------------ ------------ NET OPERATING INCOME 28,593,897 (7,238,896) 21,355,001 (7,815,214) 13,539,787 ------------ ------------ ------------ ------------ ------------ OTHER INCOME (EXPENSES) Management Company Revenue 4,233,533 - 4,233,533 - 4,233,533 Interest Income 191,895 - 191,895 - 191,895 General & Administrative: Corporate Payroll (3,395,954) - (3,395,954) - (3,395,954) Other G&A Expenses (3,012,605) - (3,012,605) - (3,012,605) ------------ ------------ ------------ ------------ ------------ Earnings before interest expenses, taxes, depreciation and amortization 26,610,766 (7,238,896) 19,371,870 (7,815,214) 11,556,656 ------------ ------------ ------------ ------------ ------------ Interest Expense (2) (10,976,735) 3,337,204 (7,639,531) 3,326,139 (4,313,392) Depreciation & Amortization (7,503,027) 1,630,536 (5,872,491) 2,244,076 (3,628,415) ------------ ------------ ------------ ------------ ------------ TOTAL OTHER INCOME (EXPENSES) (18,479,762) 4,967,740 (13,512,022) 5,570,215 (7,941,807) ------------ ------------ ------------ ------------ ------------ Equity in Income of partnerships and JVs 2,271,156 2,271,156 2,271,156 ------------ ------------ ------------ ------------ ------------ Gains (losses) on sales of interests in Real Estate - - - - - ------------ ------------ ------------ ------------ ------------ Income before Minority Interest 8,131,004 - 8,131,004 (2,244,999) 5,886,005 ------------ ------------ ------------ ------------ ------------ Minority Interest of O.P. Unitholders (789,137) - (789,137) - (789,137) ------------ ------------ ------------ ------------ ------------ Income from Operations 7,341,867 - 7,341,867 (2,244,999) 5,096,868 ------------ ------------ ------------ ------------ ------------ Discontinued Operations: Income from Discontinued Operations (17,217) - (17,217) 2,244,999 2,227,782 Equity in Income of partnerships and JVs - Minority interest in properties Minority Interest of O.P. Unitholders 6,605 - 6,605 - 6,605 Gain (losses) on Disposition of Discontinued Operations - - - - - ------------ ------------ ------------ ------------ ------------ TOTAL DISCONTINUED OPERATIONS (10,612) - (10,612) 2,244,999 2,234,387 ------------ ------------ ------------ ------------ ------------ Extraordinary item(Loss on early extinguishment of debt) - - - - - ------------ ------------ ------------ ------------ ------------ NET INCOME $7,331,255 $- $7,331,255 $- $7,331,255 ------------ ------------ ------------ ------------ ------------
(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 $338,458 not included in the quarter ended 12/31/03 and $400,079 not included in the quarter ended 12/31/02. (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. PAGE 39 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) INCOME STATEMENT-RECONCILIATION TO GAAP (1) Yearly Comparison
(Wholly Owned vs. JV's) CY12/31/03 (12 months ended 12/31/03) ------------------------------------------------------------------------------- ------------ Adjustments Combined to Equity Assets Held TOTAL % TOTAL (3) Method Subtotal for Sale Total CHANGE ------------- ------------- ------------- ------------- ------------- ------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $162,396,776 $(26,669,101) $135,727,675 $(26,160,683) $109,566,992 142.3% Straight-Lining of Base Rents 2,805,547 (172,194) 2,633,353 (25,787) 2,607,566 225.0% Percentage Rents 4,765,061 (342,437) 4,422,624 (141,500) 4,281,124 119.8% Lease Termination 1,166,949 (10,995) 1,155,954 (171,325) 984,629 30.5% Expense Recoveries & Other Income 65,603,440 (10,135,508) 55,467,932 (2,391,963) 53,075,969 263.1% ------------- ------------- ------------- ------------- ------------- ------------- TOTAL REVENUES 236,737,773 (37,330,235) 199,407,538 (28,891,258) 170,516,280 169.2% ------------- ------------- ------------- ------------- ------------- ------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 65,908,071 (10,472,504) 55,435,567 (10,683,544) 44,752,023 274.7% Real Estate Taxes 21,419,626 (3,174,423) 18,245,203 (2,658,064) 15,587,139 260.6% Minority Interest in properties 901,518 - 901,518 (7,601) 893,917 ------------- ------------- ------------- ------------- ------------- ------------- TOTAL EXPENSES 88,229,215 (13,646,927) 74,582,288 (13,349,209) 61,233,079 276.5% ------------- ------------- ------------- ------------- ------------- ------------- NET OPERATING INCOME 148,508,558 (23,683,308) 124,825,250 (15,542,049) 109,283,201 132.1% ------------- ------------- ------------- ------------- ------------- ------------- OTHER INCOME (EXPENSES) Management Company Revenue 11,994,203 - 11,994,203 11,994,203 9.0% Interest Income $887,180 - 887,180 887,180 24.8% General & Administrative: Corporate Payroll (20,830,685) - (20,830,685) (20,830,685) 47.3% Other G&A Expenses (19,336,946) - (19,336,946) (19,336,946) 82.3% ------------- ------------- ------------- ------------- ------------- ------------- Earnings before interest expenses, taxes, depreciation and amortization 121,222,310 (23,683,308) 97,539,002 (15,542,049) 81,996,953 140.9% ------------- ------------- ------------- ------------- ------------- ------------- Interest Expense (2) (52,359,677) 11,381,104 (40,978,573) 5,660,310 (35,318,263) 129.7% Depreciation & Amortization (44,996,057) 5,071,443 (39,924,614) 2,308,553 (37,616,061) 190.0% ------------- ------------- ------------- ------------- ------------- ------------- TOTAL OTHER INCOME (EXPENSES) (97,355,734) 16,452,547 (80,903,187) 7,968,863 (72,934,324) 157.3% ------------- ------------- ------------- ------------- ------------- ------------- Equity in Income of partnerships and JVs - 7,230,761 7,230,761 7,230,761 ------------- ------------- ------------- ------------- ------------- ------------- Gains (losses) on sales of interests in Real Estate 16,199,310 - 16,199,310 - 16,199,310 N/A ------------- ------------- ------------- ------------- ------------- ------------- Income before Minority Interest 40,065,886 - 40,065,886 (7,573,186) 32,492,700 147.2% ------------- ------------- ------------- ------------- ------------- ------------- Minority Interest of O.P. Unitholders (3,298,010) - (3,298,010) - (3,298,010) 161.2% ------------- ------------- ------------- ------------- ------------- ------------- Income from Operations 36,767,876 - 36,767,876 (7,573,186) 29,194,690 145.7% ------------- ------------- ------------- ------------- ------------- ------------- Discontinued Operations: Income from Discontinued Operations - - - 7,580,787 7,580,787 -16.4% Equity in Income of partnerships and JVs - Minority Interest in properties (7,601) (7,601) Minority Interest of O.P. Unitholders (18,848,730) - (18,848,730) (18,848,730) N/A Gain (losses) on Disposition of Discontinued Operations 178,121,005 - 178,121,005 178,121,005 N/A ------------- ------------- ------------- ------------- ------------- ------------- TOTAL DISCONTINUED OPERATIONS 159,272,275 - 159,272,275 7,573,186 166,845,461 N/A ------------- ------------- ------------- ------------- ------------- ------------- Extraordinary item(Loss on early extinguishment of debt) - - - - - N/A ------------- ------------- ------------- ------------- ------------- ------------- NET INCOME $196,040,151 $- $196,040,151 $- $196,040,151 727.9% ------------- ------------- ------------- ------------- ------------- -------------
CY 12/31/02 (12 months ended 12/31/02) ------------------------------------------------------------------------------- Adjustments Combined to Equity Assets Held TOTAL (3) Method Subtotal for Sale Total ------------- ------------- ------------- ------------- ------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $125,535,420 $(31,701,490) $93,833,930 $(48,614,605) $45,219,325 Straight-Lining of Base Rents 1,041,694 (239,348) 802,346 - 802,346 Percentage Rents 2,519,565 (571,784) 1,947,781 1,947,781 Lease Termination 1,131,379 (97,132) 1,034,247 (279,945) 754,302 Expense Recoveries & Other Income 28,076,388 (11,095,567) 16,980,821 (2,363,756) 14,617,065 ------------- ------------- ------------- ------------- ------------- TOTAL REVENUES 158,304,446 (43,705,321) 114,599,125 (51,258,306) 63,340,819 ------------- ------------- ------------- ------------- ------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 40,023,036 (11,529,888) 28,493,148 (16,550,502) 11,942,646 Real Estate Taxes 12,637,464 (3,583,017) 9,054,447 (4,731,738) 4,322,709 Minority Interest in properties ------------- ------------- ------------- ------------- ------------- TOTAL EXPENSES 52,660,500 (15,112,905) 37,547,595 (21,282,240) 16,265,355 ------------- ------------- ------------- ------------- ------------- NET OPERATING INCOME 105,643,946 (28,592,416) 77,051,530 (29,976,066) 47,075,464 ------------- ------------- ------------- ------------- ------------- OTHER INCOME (EXPENSES) Management Company Revenue 11,002,570 - 11,002,570 - 11,002,570 Interest Income 710,687 - 710,687 - 710,687 General & Administrative: Corporate Payroll (14,137,939) - (14,137,939) - (14,137,939) Other G&A Expenses (10,608,902) - (10,608,902) - (10,608,902) ------------- ------------- ------------- ------------- ------------- Earnings before interest expenses, taxes, depreciation and amortization 92,610,362 (28,592,416) 64,017,946 (29,976,066) 34,041,880 ------------- ------------- ------------- ------------- ------------- Interest Expense (2) (41,696,929) 13,697,011 (27,999,918) 12,622,369 (15,377,549) Depreciation & Amortization (28,857,528) 7,446,295 (21,411,233) 8,442,297 (12,968,936) ------------- ------------- ------------- ------------- ------------- TOTAL OTHER INCOME (EXPENSES) (70,554,457) 21,143,306 (49,411,151) 21,064,666 (28,346,485) ------------- ------------- ------------- ------------- ------------- Equity in Income of partnerships and JVs 7,449,110 7,449,110 7,449,110 ------------- ------------- ------------- ------------- ------------- Gains (losses) on sales of interests in Real Estate - - - - - ------------- ------------- ------------- ------------- ------------- Income before Minority Interest 22,055,905 - 22,055,905 (8,911,400) 13,144,505 ------------- ------------- ------------- ------------- ------------- Minority Interest of O.P. Unitholders (1,262,556) - (1,262,556) - (1,262,556) ------------- ------------- ------------- ------------- ------------- Income from Operations 20,793,349 - 20,793,349 (8,911,400) 11,881,949 ------------- ------------- ------------- ------------- ------------- Discontinued Operations: Income from Discontinued Operations 151,875 - 151,875 8,911,400 9,063,275 Equity in Income of partnerships and JVs - Minority Interest in properties Minority Interest of O.P. Unitholders (1,352,412) - (1,352,412) - (1,352,412) Gain (losses) on Disposition of Discontinued Operations 4,085,164 - 4,085,164 - 4,085,164 ------------- ------------- ------------- ------------- ------------- TOTAL DISCONTINUED OPERATIONS 2,884,627 - 2,884,627 8,911,400 11,796,027 ------------- ------------- ------------- ------------- ------------- Extraordinary item(Loss on early extinguishment of debt) - - - - - ------------- ------------- ------------- ------------- ------------- NET INCOME $23,677,976 $- $23,677,976 $- $23,677,976 ------------- ------------- ------------- ------------- -------------
(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 $1,407,832 not included in the year ended 12/31/03 and $1,722,485 not included in the year ended 12/31/02. (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. PAGE 40 Pennsylvania REIT FLASH REPORT-RECONCILIATION TO GAAP (December 31, 2003) Quarterly Comparison Financial Statement
Q4 03 (3 months ended 12/31/03) ----------------------------------------------------------------------------------- Adjustments Combined to Equity Assets Held TOTAL Method Subtotal for Sale Total ------------- ------------- ------------- ------------- ------------- Real Estate Revenues: Same Store $20,489,069 (7,654,476) $12,834,593 - $12,834,593 New 62,955,052 - 62,955,052 - 62,955,052 Redevelopment 6,695,196 - 6,695,196 - 6,695,196 Discontinued 2,248 2,248 (4,129,272) (4,127,024) ------------- ------------- ------------- ------------- ------------- Total Real Estate Revenues 90,141,564 (7,654,476) 82,487,088 (4,129,272) 78,357,816 ------------- ------------- ------------- ------------- ------------- Operating Expenses: Same Store 5,634,917 (2,610,367) 3,024,550 - 3,024,550 New 24,433,318 - 24,433,318 - 24,433,318 Redevelopment 2,320,331 - 2,320,331 - 2,320,331 Discontinued 14,504 14,504 (1,965,465) (1,950,961) ------------- ------------- ------------- ------------- ------------- Total Operating Expenses 32,403,070 (2,610,367) 29,792,703 (1,965,465) 27,827,238 ------------- ------------- ------------- ------------- ------------- NOI: Same Store 14,854,152 (5,044,109) 9,810,043 - 9,810,043 New 38,521,734 - 38,521,734 - 38,521,734 Redevelopment 4,374,865 - 4,374,865 - 4,374,865 Discontinued (12,256) - (12,256) (2,163,807) (2,176,063) ------------- ------------- ------------- ------------- ------------- NOI (2) 57,738,494 (5,044,109) 52,694,385 (2,163,807) 50,530,578 ------------- ------------- ------------- ------------- ------------- OTHER INCOME (EXPENSES): Management Company Revenue 4,048,766 - 4,048,766 - 4,048,766 Interest Income 335,524 - 335,524 - 335,524 General & Administrative: - - - - Corporate Payroll (9,538,925) - (9,538,925) - (9,538,925) Other G&A Expenses (8,461,798) - (8,461,798) - (8,461,798) ------------- ------------- ------------- ------------- ------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 44,122,061 (5,044,109) 39,077,952 (2,163,807) 36,914,145 ------------- ------------- ------------- ------------- ------------- Interest Expense (16,332,086) 2,190,986 (14,141,100) $449,311 (13,691,789) Depreciation and Amortization (19,160,727) 1,243,672 (17,917,055) - (17,917,055) Equity in income of partnership and JVs - 1,609,451 1,609,451 - 1,609,451 Gain(loss) on Sale of Interests in RE 4,457,176 - 4,457,176 - 4,457,176 DISCONTINUED OPERATIONS: - - - - - Income from Disposed Real Estate - - - 1,722,097 1,722,097 Equity in income of partnership and JVs - - - - - Minority Interest in properties - - - (7,601) (7,601) Minority Interest of O.P. Unitholders (580,392) - (580,392) - (580,392) Gain (losses) on Disposition of Discontinued Operations 194,441 - 194,441 - 194,441 ------------- ------------- ------------- ------------- ------------- TOTAL DISCONTINUED OPERATIONS (385,951) - (385,951) 1,714,496 1,328,545 ------------- ------------- ------------- ------------- ------------- Extraordinary item(Loss on early extinguishment of debt) - - - - - Minority Interest of OP Unit Holders (1,198,594) - (1,198,594) - (1,198,594) ------------- ------------- ------------- ------------- ------------- NET INCOME 11,501,879 - 11,501,879 - 11,501,879 ------------- ------------- ------------- ------------- ------------- Gain on Sale of Real Estate (4,651,617) - (4,651,617) - (4,651,617) Depreciation and Amor. of Real Estate 19,095,727 - 19,095,727 - 19,095,727 Dividends on preferred shares (1,533,000) - (1,533,000) - (1,533,000) FFO Adjustments 1,778,986 - 1,778,986 - 1,778,986 ------------- ------------- ------------- ------------- ------------- FFO 26,191,975 - 26,191,975 - 26,191,975 ------------- ------------- ------------- ------------- ------------- Adj. Straight Lining of Base Rents (1,055,305) - (1,055,305) - (1,055,305) Recurring Capital Expenditures (442,327) - (442,327) - (442,327) Amortization of Debt Premium (2,933,065) - (2,933,065) - (2,933,065) ------------- ------------- ------------- ------------- ------------- FAD $21,761,278 $- $21,761,278 - $21,761,278 ------------- ------------- ------------- ------------- ------------- Dividends for Common Shares and O.P Units $15,534,398 Share Price (at close) $36.30 Weighted Average Number of Shares 28,786,801 WA number of Shares and OP Units 31,744,396 ------------- ------------- ------------- ------------- ------------- Net Income/Share $0.35 FFO/Share and OP Units $0.83 FAD/Share and OP Units $0.69 Dividend/Share and OP Units $0.54 ------------- ------------- ------------- ------------- -------------
Q4 02 (3 months ended 12/31/02) ----------------------------------------------------------------------------------- Adjustments Combined to Equity Assets Held TOTAL Method Subtotal for Sale Total ------------- ------------- ------------- ------------- ------------- Real Estate Revenues: Same Store $19,805,245 (10,026,636) $9,778,609 - $9,778,609 New 2,055,325 - 2,055,325 - 2,055,325 Redevelopment 6,493,056 - 6,493,056 - 6,493,056 Discontinued 14,928,033 (1,332,192) 13,595,841 (13,595,841) - ------------- ------------- ------------- ------------- ------------- Total Real Estate Revenues 43,281,659 (11,358,828) 31,922,831 (13,595,841) 18,326,990 ------------- ------------- ------------- ------------- ------------- Operating Expenses: Same Store 5,197,919 (3,527,814) 1,670,105 - 1,670,105 New 959,949 959,949 - 959,949 Redevelopment 2,157,149 - 2,157,149 - 2,157,149 Discontinued 6,372,745 (592,118) 5,780,627 (5,780,627) - ------------- ------------- ------------- ------------- ------------- Total Operating Expenses 14,687,762 (4,119,932) 10,567,830 (5,780,627) 4,787,203 ------------- ------------- ------------- ------------- ------------- NOI: Same Store 14,607,326 (6,498,822) 8,108,504 - 8,108,504 New 1,095,376 - 1,095,376 - 1,095,376 Redevelopment 4,335,907 - 4,335,907 - 4,335,907 Discontinued 8,555,288 (740,074) 7,815,214 (7,815,214) - ------------- ------------- ------------- ------------- ------------- NOI (2) 28,593,897 (7,238,896) 21,355,001 (7,815,214) 13,539,787 ------------- ------------- ------------- ------------- ------------- OTHER INCOME (EXPENSES): Management Company Revenue 4,233,533 - 4,233,533 - 4,233,533 Interest Income 191,895 - 191,895 - 191,895 General & Administrative: - - - - - Corporate Payroll (3,395,954) - (3,395,954) - (3,395,954) Other G&A Expenses (3,012,605) - (3,012,605) - (3,012,605) ------------- ------------- ------------- ------------- ------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 26,610,766 (7,238,896) 19,371,870 (7,815,214) 11,556,656 ------------- ------------- ------------- ------------- ------------- Interest Expense (10,976,735) 3,337,204 (7,639,531) $3,326,139 (4,313,392) Depreciation and Amortization (7,503,027) 1,630,536 (5,872,491) $2,244,076 (3,628,415) Equity in income of partnership and JVs 2,271,156 2,271,156 - 2,271,156 Gain(loss) on Sale of Interests in RE - - - - - DISCONTINUED OPERATIONS: - - - - - Income from Disposed Real Estate (17,217) - (17,217) 2,244,999 2,227,782 Equity in income of partnership and JVs - - - - - Minority Interest in properties Minority Interest of O.P. Unitholders 6,605 - 6,605 - 6,605 Gain (losses) on Disposition of Discontinued Operations - - - - - ------------- ------------- ------------- ------------- ------------- TOTAL DISCONTINUED OPERATIONS (10,612) - (10,612) 2,244,999 2,234,387 ------------- ------------- ------------- ------------- ------------- Extraordinary item(Loss on early extinguishment of debt) - - - - - Minority Interest of OP Unit Holders (789,137) - (789,137) - (789,137) ------------- ------------- ------------- ------------- ------------- NET INCOME 7,331,255 - 7,331,255 - 7,331,255 ------------- ------------- ------------- ------------- ------------- Gain on Sale of Real Estate - - - - - Depreciation and Amor. of Real Estate 7,438,027 - 7,438,027 - 7,438,027 Dividends on preferred shares FFO Adjustments 782,532 - 782,532 - 782,532 ------------- ------------- ------------- ------------- ------------- FFO 15,551,814 - 15,551,814 - 15,551,814 ------------- ------------- ------------- ------------- ------------- Adj. Straight Lining of Base Rents (297,854) - (297,854) - (297,854) Recurring Capital Expenditures (637,090) - (637,090) - (637,090) Amortization of Debt Premium - - - - - ------------- ------------- ------------- ------------- ------------- FAD $14,616,870 $- $14,616,870 $- $14,616,870 ------------- ------------- ------------- ------------- ------------- Dividends for Common Shares and O.P Units $9,343,863 Share Price (at close) $26.00 Weighted Average Number of Shares 16,450,912 WA number of Shares and OP Units 18,209,542 ------------- ------------- ------------- ------------- ------------- Net Income/Share $0.45 FFO/Share and OP Units $0.85 FAD/Share and OP Units $0.80 Dividend/Share and OP Units $0.51 ------------- ------------- ------------- ------------- -------------
Balance Sheet
Q4 03 (3 months ended 12/31/03) -------------------------------------------------------------------------------------------- Adjustments to Assets Held for Combined TOTAL Equity Method Subtotal Sale Total --------------- --------------- --------------- --------------- --------------- Investment in Real Estate, at cost $2,540,102,220 $(134,613,285) $2,405,488,935 $(118,887,475) $2,286,601,460 Accumulated Depreciation (110,068,351) 31,652,085 (78,416,266) - (78,416,266) Investment in and advances to Partnership and JVs - 13,108,951 13,108,951 - 13,108,951 Other Assets 369,138,761 (23,839,906) $345,298,855 118,887,475 464,186,330 --------------- --------------- --------------- --------------- --------------- Total Assets $2,799,172,630 $(113,692,155) $2,685,480,475 $- $2,685,480,475 --------------- --------------- --------------- --------------- --------------- Mortgage Notes $1,396,262,538 $(109,581,659) $1,286,680,879 $(65,500,150) $1,221,180,729 Line of Credit 170,000,000 - 170,000,000 - 170,000,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Other Liabilities 96,624,952 (4,110,496) 92,514,456 65,500,150 158,014,606 --------------- --------------- --------------- --------------- --------------- Total Liabilities $1,662,887,490 $(113,692,155) $1,549,195,335 $- $1,549,195,335 --------------- --------------- --------------- --------------- --------------- Minority Interest $112,651,527 $- $112,651,527 $- $112,651,527 Total Shareholders Equity 1,023,633,613 - 1,023,633,613 - 1,023,633,613 --------------- --------------- --------------- --------------- --------------- Total Liabilities and Shareholder Equity $2,799,172,630 $(113,692,155) $2,685,480,475 $- $2,685,480,475 --------------- --------------- --------------- --------------- --------------- Q4 02 (3 months ended 12/31/02) -------------------------------------------------------------------------------------------- Adjustments to Assets Held for Combined TOTAL Equity Method Subtotal Sale Total --------------- --------------- --------------- --------------- --------------- Investment in Real Estate, at cost $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) Investment in and advances to Partnership and JVs 105,309 25,256,374 25,361,683 - 25,361,683 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 --------------- --------------- --------------- --------------- --------------- Mortgage Notes $486,479,770 $(166,728,446) $319,751,324 $- $319,751,324 Line of Credit 130,800,000 - 130,800,000 - 130,800,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Other Liabilities 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 Total Shareholders Equity 188,012,537 - 188,012,537 - 188,012,537 --------------- --------------- --------------- --------------- --------------- Total Liabilities and Shareholder Equity $877,408,506 $(173,745,343) $703,663,163 $- $703,663,163 --------------- --------------- --------------- --------------- ---------------
PAGE 41 Pennsylvania REIT FLASH REPORT-RECONCILIATION TO GAAP (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] Yearly Comparison Financial Statement
12/31/03 (12 months ended 12/31/03) --------------------------------------------------------------------------------------- Adjustments to Assets Held Combined TOTAL Equity Method Subtotal for Sale Total -------------- -------------- -------------- -------------- -------------- Real Estate Revenues: Same Store $63,934,404 (30,459,521) 33,474,883 - 33,474,883 New 123,221,635 (4,737,566) 118,484,069 - 118,484,069 Redevelopment 22,684,353 - 22,684,353 - 22,684,353 Discontinued 26,897,382 (2,133,148) 24,764,234 (28,891,258) (4,127,024) -------------- -------------- -------------- -------------- -------------- Total Real Estate Revenues 236,737,773 (37,330,235) 199,407,538 (28,891,258) 170,516,280 -------------- -------------- -------------- -------------- -------------- Operating Expenses: Same Store 17,150,619 (9,735,897) 7,414,722 - 7,414,722 New 50,739,722 (2,878,733) 47,860,989 - 47,860,989 Redevelopment 7,908,329 - 7,908,329 - 7,908,329 Discontinued 12,430,545 (1,032,297) 11,398,248 (13,349,209) (1,950,961) -------------- -------------- -------------- -------------- -------------- Total Operating Expenses 88,229,215 (13,646,927) 74,582,288 (13,349,209) 61,233,079 -------------- -------------- -------------- -------------- -------------- NOI: Same Store 46,783,785 (20,723,624) 26,060,161 - 26,060,161 New 72,481,913 (1,858,833) 70,623,080 - 70,623,080 Redevelopment 14,776,024 - 14,776,024 - 14,776,024 Discontinued 14,466,837 (1,100,851) 13,365,986 (15,542,049) (2,176,063) -------------- -------------- -------------- -------------- -------------- NOI (2) 148,508,558 (23,683,308) 124,825,250 (15,542,049) 109,283,201 -------------- -------------- -------------- -------------- -------------- OTHER INCOME (EXPENSES): Management Company Revenue 11,994,203 - 11,994,203 - 11,994,203 Interest Income 887,180 - 887,180 - 887,180 General & Administrative: - - - - Corporate Payroll (20,830,685) - (20,830,685) - (20,830,685) Other G&A Expenses (19,336,946) - (19,336,946) - (19,336,946) -------------- -------------- -------------- -------------- -------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 121,222,310 (23,683,308) 97,539,002 (15,542,049) 81,996,953 -------------- -------------- -------------- -------------- -------------- Interest Expense (52,359,677) 11,381,104 (40,978,573) 5,660,310 (35,318,263) Depreciation and Amortization (44,996,057) 5,071,443 (39,924,614) 2,308,553 (37,616,061) Equity in income of partnership and JVs - 7,230,761 7,230,761 7,230,761 Gain(loss) on Sale of Interests in RE 16,199,310 - 16,199,310 - 16,199,310 DISCONTINUED OPERATIONS: - - - - - Income from Disposed Real Estate - - - 7,580,787 7,580,787 Equity in income of partnership and JVs - - - - - Minority Interest in properties - (7,601) (7,601) Minority Interest of O.P. Unitholders (18,848,730) - (18,848,730) - (18,848,730) Gain (losses) on Disposition of Discontinued Operations 178,121,005 - 178,121,005 178,121,005 -------------- -------------- -------------- -------------- -------------- TOTAL DISCONTINUED OPERATIONS 159,272,275 - 159,272,275 7,573,186 166,845,461 -------------- -------------- -------------- -------------- -------------- Extraordinary item(Loss on early extinguishment of debt) - - - - - Minority Interest of OP Unit Holders (3,298,010) - (3,298,010) - (3,298,010) -------------- -------------- -------------- -------------- -------------- NET INCOME 196,040,151 - 196,040,151 - 196,040,151 -------------- -------------- -------------- -------------- -------------- Gain on Sale of Real Estate (194,320,315) - (194,320,315) - (194,320,315) Depreciation and Amor. of Real Estate 44,736,057 - 44,736,057 - 44,736,057 Dividends on preferred shares (1,533,000) - (1,533,000) (1,533,000) FFO Adjustments 22,146,740 - 22,146,740 - 22,146,740 -------------- -------------- -------------- -------------- -------------- FFO 67,069,633 - 67,069,633 - 67,069,633 -------------- -------------- -------------- -------------- -------------- Adj. Straight Lining of Base Rents (2,805,547) - (2,805,547) - (2,805,547) Recurring Capital Expenditures (1,931,941) - (1,931,941) - (1,931,941) Amortization of Debt Premium (5,940,175) - (5,940,175) - (5,940,175) -------------- -------------- -------------- -------------- -------------- FAD $56,391,970 $- $56,391,970 $- $56,391,970 -------------- -------------- -------------- -------------- -------------- Dividends for Common Shares and O.P Units $46,892,620 Share Price (at close) $36.30 Weighted Average Number of Shares 20,389,577 WA number of Shares and OP Units 22,693,026 -------------- Net Income/Share $9.54 FFO/Share and OP Units $2.96 FAD/Share and OP Units $2.48 Dividend/Share and OP Units $2.07
12/31/02 (12 months ended 12/31/02) --------------------------------------------------------------------------------------- Adjustments to Assets Held Combined TOTAL Equity Method Subtotal for Sale Total -------------- -------------- -------------- ------------- ------------- Real Estate Revenues: Same Store $62,092,629 (30,063,249) $32,029,380 - $32,029,380 New 16,486,521 (7,318,227) 9,168,294 - 9,168,294 Redevelopment 22,143,145 - 22,143,145 - 22,143,145 Discontinued 57,582,151 (6,323,845) 51,258,306 (51,258,306) - -------------- -------------- -------------- -------------- -------------- Total Real Estate Revenues 158,304,446 (43,705,321) 114,599,125 (51,258,306) 63,340,819 -------------- -------------- -------------- -------------- -------------- Operating Expenses: Same Store 15,352,721 (9,243,504) 6,109,217 - 6,109,217 New 5,607,334 (3,048,561) 2,558,773 - 2,558,773 Redevelopment 7,597,365 - 7,597,365 - 7,597,365 Discontinued 24,103,080 (2,820,840) 21,282,240 (21,282,240) - -------------- -------------- -------------- -------------- -------------- Total Operating Expenses 52,660,500 (15,112,905) 37,547,595 (21,282,240) 16,265,355 -------------- -------------- -------------- -------------- -------------- NOI: Same Store 46,739,908 (20,819,745) 25,920,163 - 25,920,163 New 10,879,187 (4,269,666) 6,609,521 - 6,609,521 Redevelopment 14,545,780 - 14,545,780 - 14,545,780 Discontinued 33,479,071 (3,503,005) 29,976,066 (29,976,066) - -------------- -------------- -------------- -------------- -------------- NOI (2) 105,643,946 (28,592,416) 77,051,530 (29,976,066) 47,075,464 -------------- -------------- -------------- -------------- -------------- OTHER INCOME (EXPENSES): Management Company Revenue 11,002,570 - 11,002,570 - 11,002,570 Interest Income 710,687 - 710,687 - 710,687 General & Administrative: - - - - Corporate Payroll (14,137,939) - (14,137,939) - (14,137,939) Other G&A Expenses (10,608,902) - (10,608,902) - (10,608,902) -------------- -------------- -------------- -------------- -------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 92,610,362 (28,592,416) 64,017,946 (29,976,066) 34,041,880 -------------- -------------- -------------- -------------- -------------- Interest Expense (41,696,929) 13,697,011 (27,999,918) $12,622,369 (15,377,549) Depreciation and Amortization (28,857,528) 7,446,295 (21,411,233) $8,442,297 (12,968,936) Equity in income of partnership and JVs 7,449,110 7,449,110 - 7,449,110 Gain(loss) on Sale of Interests in RE 4,085,164 - 4,085,164 - 4,085,164 DISCONTINUED OPERATIONS: - - - - Income from Disposed Real Estate 151,875 - 151,875 8,911,400 9,063,275 Equity in income of partnership and JVs - - - Minority Interest in properties Minority Interest of O.P. Unitholders (1,352,412) - (1,352,412) - (1,352,412) Gain (losses) on Disposition of Discontinued Operations - - - - -------------- -------------- -------------- -------------- -------------- TOTAL DISCONTINUED OPERATIONS (1,200,537) - (1,200,537) 8,911,400 11,796,027 -------------- -------------- -------------- -------------- -------------- Extraordinary item(Loss on early extinguishment of debt) - - - - - Minority Interest of OP Unit Holders (1,262,556) - (1,262,556) - (1,262,556) -------------- -------------- -------------- -------------- -------------- NET INCOME 23,677,976 - 23,677,976 - 23,677,976 -------------- -------------- -------------- -------------- -------------- Gain on Sale of Real Estate (4,085,164) - (4,085,164) - (4,085,164) Depreciation and Amor. of Real Estate 28,597,528 - 28,597,528 - 28,597,528 Dividends on preferred shares FFO Adjustments 2,976,919 - 2,976,919 - 2,976,919 -------------- -------------- -------------- -------------- -------------- FFO 51,167,259 - 51,167,259 - 51,167,259 -------------- -------------- -------------- -------------- -------------- Adj. Straight Lining of Base Rents (1,041,694) - (1,041,694) - (1,041,694) Recurring Capital Expenditures (2,903,637) - (2,903,637) - (2,903,637) Amortization of Debt Premium - - - - - -------------- -------------- -------------- -------------- -------------- FAD $47,221,928 $- $47,221,928 $- $47,221,928 -------------- -------------- -------------- -------------- -------------- Dividends for Common Shares and O.P Units $36,909,429 Share Price (at close) $26.00 Weighted Average Number of Shares 16,162,327 WA number of Shares and OP Units 17,967,106 -------------- Net Income/Share $1.47 FFO/Share and OP Units $2.85 FAD/Share and OP Units $2.63 Dividend/Share and OP Units $2.04
PAGE 42 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003) [GRAPHIC OMITTED] [GRAPHIC OMITTED] 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. PAGE 43