EX-99 2 ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 PREIT PEI [GRAPHIC LISTED OMITTED] NYSE PENNSYLVANIA REAL ESTATE INVESTMENT TRUST QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) WWW.PREIT.COM PENNSYLVANIA REIT PREIT PEI [GRAPHIC LISTED QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) OMITTED] NYSE
TABLE OF CONTENTS ------------------ Company Information 1 Timeline/Recent Developments 2 Stock Information 3 Market Capitalization and Capital Resources 4 Balance Sheet--Wholly Owned and JV Detail 5 Balance Sheet--Line of Business 6 Income Statement--Wholly Owned and JV Detail -Quarterly Comparison 7 Income Statement--Line of Business- Quarterly Comparison 8 Income Statement--Retail (Property Status) -Quarterly Comparison 9 Income Statement--Retail (Property Subtype) -Quarterly Comparison 10 FFO and FAD 11 Key Ratios 12 Property Debt Schedule--Wholly Owned 13 Property Debt Schedule--JV 14 Debt Analysis 15 Debt Ratios 16 Portfolio Summary--Retail 17A-C Property Acquisitions/Dispositions- Quarterly Summary 18 Property Development/Redevelopment Summary 19 Top Twenty Tenants Schedule 20 Lease Expiration Schedule - Anchor Tenants 21 Lease Expiration Schedule - Non-Anchor Tenants 22 New Lease/Renewal Summary and Analysis 23 Capital Expenditures 24 Enclosed Mall-Summary and Occupancy 25 Enclosed Mall-Rent Summary 26 Power Center- Summary and Occupancy 27 Strip Center- Summary and Occupancy 28 Retail Overall- Summary and Occupancy 29 Summary of Portfolio Services 30 Flash Report 31 RECONCILIATION TO GAAP: Balance Sheet-Reconciliation to GAAP 32 Income Statement-Reconciliation to GAAP -Quarterly 33 Flash Report-Reconciliation to GAAP- Quarterly 34 Definition page 35
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 PREIT PEI [GRAPHIC LISTED QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) OMITTED] NYSE 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 33.8 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. On June 17, 2004 the Company announced agreements for disposition of five malls and one strip center. Upon completion of the transactions, PREIT's portfolio will consist of 52 properties in 12 states, including 35 malls, 13 strip and power centers and four industrial properties totaling approximately 30.4 million square feet. RESEARCH COVERAGE -------------------------------------------------------------------------------- COMPANY ANALYST PHONE NUMBER ------- ------- ------------ -------------------------------------------------------------------------------- Green Street Advisors Gregory R. Andrews (949) 640-8780 Barbara M. Hoogland (949) 640-8780 -------------------------------------------------------------------------------- JP Morgan Michael W. Mueller (212) 622-6689 Anthony Paolone (212) 622-6682 Joshua Bederman (212) 622-6530 -------------------------------------------------------------------------------- Legg Mason Wood Walker David M. Fick (410) 539-0000 Nathan Isbee (410) 454-4143 -------------------------------------------------------------------------------- Lehman Brothers David Shulman (212) 526-3413 Alexander D. Goldfarb (212) 526-5232 -------------------------------------------------------------------------------- UBS Ian C. Weissman (212) 713-8602 Keith A. Mills (212) 713-3098 Frank Rybinski (212) 713-2364 -------------------------------------------------------------------------------- QUARTERLY EARNINGS SCHEDULE PREIT's quarterly results will be announced in accordance with the following schedule: -------------------------------------------------------------------------------- QUARTER 2004 2003 ------- ---- ---- -------------------------------------------------------------------------------- First Quarter 5/5/2004 5/14/2003 -------------------------------------------------------------------------------- Second Quarter 8/5/2004 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 PENNSYLVANIA REIT PREIT PEI [GRAPHIC LISTED QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) OMITTED] NYSE TIME LINE/RECENT DEVELOPMENTS ----------------------------- JULY 30, 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 11.00% senior preferred shares. JULY 30, 2004 - Pennsylvania Real Estate Investment Trust announced that its Board of Trustees elected Professor Stephen B. Cohen to serve PREIT as a Class B Trustee. The Board of Trustees also appointed Professor Cohen to serve as a member of the Audit Committee. JULY 26, 2004 - Pennsylvania Real Estate Investment Trust announced that it intends to release its financial results for the second quarter and six months ended June 30, 2004, on Thursday, August 5, 2004. It also announced that Management will hold a conference call on Thursday, August 5, 2004 at 3:00PM EST to review the Company's second quarter and six month results, market trends and future outlook. JULY 14, 2004 - Pennsylvania Real Estate Investment Trust announced that Wal-Mart Stores, Inc. will build a 147,550 square foot store at the Company's Echelon Mall in Voorhees, New Jersey. JUNE 17, 2004 - Pennsylvania Real Estate Investment Trust announced agreements for the disposition of five malls for $110.7 million and the sale of its 60% ownership in one strip center for $4.1 million. PREIT revised its 2004 FFO guidance assuming the five-mall transaction will be completed on September 1, 2004 and the strip mall transaction will be completed on August 1, 2004. Net income available to common shares is expected to be between $1.12 and $1.24 per share. FFO per share is expected to be between $3.52 and $3.64 per share. JUNE 4, 2004 - Pennsylvania Real Estate Investment Trust announced that its shareholders approved the election of all of the nominees to its Board of Trustees and also ratified KPMG LLP as the Trust's independent auditor for 2004. The following trustees were elected to PREIT's Board: Edward A. Glickman, Rosemarie B. Greco, Ira M. Lubert, Donald F. Mazziotti, Mark E. Pasquerilla and George F. Rubin. In addition, Jeffrey P. Orleans resigned from the PREIT Board of Trustees. JUNE 4, 2004 - Pennsylvania Real Estate Investment Trust announced that Ronald Rubin, PREIT's Chairman and CEO, will present at the National Association of Real Estate Investment Trust's (NAREIT) Institutional Investor Forum in New York City, New York, on Monday, June 7, 2004 at 11:15AM EST. JUNE 3, 2004 - Pennsylvania Real Estate Investment Trust announced that it had completed the acquisition of the remaining 27% ownership interest in, and now owns 100% of, Cherry Hill Mall, Cherry Hill, New Jersey. PREIT purchased the remaining equity in New Castle Associates, which owns Cherry Hill Mall, for approximately 609,000 Operating Partnership units at $29.285 per unit. MAY 20, 2004 - Pennsylvania Real Estate Investment Trust announced that it had completed the acquisition of The Gallery at Market East II, Philadelphia, PA, from 5 North Fifth Street, L.P., for $32 million. The acquisition was funded from the Company's line of credit. MAY 5, 2004 - Pennsylvania Real Estate Investment Trust announced its results for the first quarter ended March 31, 2004. Net income available to common shares for the first quarter of 2004 was $0.16 per share. FFO per common share and Operating Partnership unit for the first quarter of 2004 was $0.85, which was at the midpoint of the Company's guidance provided in February 2004. APRIL 27, 2004 - Pennsylvania Real Estate Investment Trust announced that Robert F. McCadden will join PREIT on May 17, 2004 as its Chief Financial Officer and Executive Vice President. NOTE: COPIES OF THE PRESS RELEASES ARE AVAILABLE ON THE COMPANY'S WEBSITE AT WWW.PREIT.COM. PENNSYLVANIA REIT PREIT PEI [GRAPHIC LISTED QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) OMITTED] NYSE STOCK INFORMATION ------------------ PREIT's common stock trades on the New York Stock Exchange (symbol: PEI). PREIT's preferred stock trades on the New York Stock Exchange (symbol: PEIPRA).
Q2:6/30/04 Q1:3/31/04 CY:12/31/03 --------------------------------------------------------------------------------------------------------------- High Price 37.87 37.85 36.30 Low Price 30.25 33.30 24.70 Close 34.25 37.66 36.30 Average Daily Trading Volume 181,397 220,144 109,892 Common Shares Outstanding at end of period 35,938,306 35,778,863 35,544,265 O.P. Units 4,444,030 3,834,714 3,691,516 --------------- --------------- --------------- Fully Diluted Shares Outstanding 40,382,336 39,613,577 39,235,781 Weighted Avg. number of common shares outstanding 35,516,772 35,403,257 20,389,577 Weighted Avg. effect of full conversion of O.P. units 4,028,892 3,836,144 2,303,449 --------------- --------------- --------------- Wtd Avg. Common Shares Outstanding and O.P. Units 39,545,664 39,239,401 22,693,026 Preferred Shares, Nominal Value $ 123,750,000 $ 123,750,000 $ 123,750,000 Market Value of Shares (based on closing price) $ 1,506,845,008 $ 1,615,597,310 $ 1,548,008,850 --------------------------------------------------------------------------------------------------------------- Q2:6/30/03 CY 12/31/02 CY 12/31/01 --------------------------------------------------------------------------------------------------------------- High Price 30.34 27.20 25.05 Low Price 27.94 20.55 18.25 Close 29.95 26.00 23.20 Average Daily Trading Volume 85,567 41,495 39,463 Common Shares Outstanding at end of period 16,837,304 16,697,119 15,876,084 O.P. Units 2,057,618 1,763,318 1,753,580 --------------- --------------- --------------- Fully Diluted Shares Outstanding 18,894,922 18,460,437 17,629,664 Weighted Avg. number of common shares outstanding 16,615,576 16,162,327 14,656,711 Weighted Avg. effect of full conversion of O.P. units 1,998,708 1,804,779 1,869,383 --------------- --------------- --------------- Wtd Avg. Common Shares Outstanding and O.P. Units 18,614,284 17,967,106 16,526,094 Preferred Shares, Nominal Value Market Value of Shares (based on closing price) $ 565,902,914 $ 479,971,362 $ 409,008,205 ---------------------------------------------------------------------------------------------------------------
SHAREHOLDER INFORMATION TEN LARGEST INSTITUTIONAL SHAREHOLDERS: COMMON SHARES HELD (1) 6/30/2004 ----------- RREEF Real Estate Securities Advisers, L.P. 4,783,682 ING Clarion Real Estate Securities 1,570,283 Barclays Global Investors 1,379,678 Vanguard Group, Inc. 1,367,199 Manufacturers Advisers Corporation 953,032 State Street Global Advisors 774,924 Urdang Investment Management, Inc. 773,700 Neuberger Berman, LLC 575,050 Deutsche Investment Management Americas, Inc. 487,105 K.G. Redding & Associates 443,500 TOTAL OF TEN LARGEST INSTITUTIONAL: 13,108,153 TOTAL OF ALL INSTITUTIONAL HOLDERS: 20,628,341 TEN LARGEST AS % OF TOTAL INSTITUTIONAL: 63.5% (1) Based on 13F filings as of 6/30/04 or most recent filings. [GRAPH OMITTED] -------------------------------------------------------------------------------- SHARE OWNERSHIP BY INSIDERS: SHARES HELD (INCLUDING O.P. UNITS, BENEFICIAL OWNERSHIP AND EXERCISABLE OPTIONS)
INTERIM NET PURCHASES OF AS OF 4/1/04(1) % OF TOTAL (2) SHARES (3) AS OF 12/31/03(4) % OF TOTAL (5) --------------- -------------- ------------- ----------------- -------------- Mark Pasquerilla 2,398,073 5.9% 1,000 2,397,073 6.1% Ronald Rubin 859,469 2.1% 20,621 838,848 2.1% George F. Rubin 434,925 1.1% 14,390 420,535 1.1% Leonard I. Korman 363,475 0.9% 50,690 312,785 0.8% Edward A. Glickman 225,856 0.6% 12,626 213,230 0.5% Jonathan B. Weller 165,736 0.4% 13,206 152,530 0.4% Joseph F. Coradino 125,043 0.3% 13,386 111,657 0.3% Jeffrey P. Orleans 84,958 0.2% 2,210 82,748 0.2% Jeffrey A. Linn 72,450 0.2% 3,094 69,356 0.2% Douglas S. Grayson 45,306 0.1% 3,154 42,152 0.1% David J. Bryant 24,894 0.1% 3,642 21,252 0.1% Bruce Goldman 16,499 0.0% 5,746 10,753 0.0% Lee H. Javitch 15,375 0.0% 3,250 12,125 0.0% Rosemarie B. Greco 9,375 0.0% 2,250 7,125 0.0% Ira Lubert 5,500 0.0% 2,250 3,250 0.0% Donald Mazziotti 1,985 0.0% N/A N/A N/A John J. Roberts 1,000 0.0% N/A N/A N/A --------------------------------------------------------------------------------------- TOTAL (6) 4,793,078 12.0% 151,515 4,643,637 12.0% --------------------------------------------------------------------------------------------------------------------
(1) Source of Insider Ownership: Proxy dated April 29, 2004. Refer to footnotes in proxy for details on beneficial ownership. (2) Based on fully diluted shares outstanding as of June 30, 2004. (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 December 31, 2003. (6) In certain instances, two trustees beneficially own the same shares because they share voting or investment power over the shares. These shares have been counted only once in the total. DISTRIBUTION INFORMATION
Q2:6/30/04 Q1:3/31/04 CY: 12/31/03 Q2:6/30/03 CY 12/31/02 CY 12/31/01 ---------------------------------------------------------------------------------------------------------------------------------- Dividend per share $ 0.540 $ 0.540 $ 2.070 $ 0.510 $ 2.040 $ 2.040 Annualized Dividend Yield (1) 6.3% 5.7% 5.7% 6.8% 7.8% 8.8% Capital Gain Pre-May 6 N/A N/A 0.096 $ 0.082 $ 0.110 Capital Gain Post-May 5 N/A N/A 0.213 0 Section 1250 Gain N/A N/A 0.480 0.064 $ - $ 0.129 Return of Capital/Non-Taxable N/A N/A 0.085 0.021 $ 0.134 $ - Qualified 5 Year Gain (incl. in cap. Gain) N/A N/A N/A N/A $ - $ - Ordinary Income N/A N/A $ 1.196 $ 0.425 $ 1.824 $ 1.801 ----------------------------------------------------------------------------------------------------------------------------------
(1) Based on closing stock price for the period. ------------------------------------------------------------------------------ BREAKDOWN OF SHARE & UNIT % OF 6/30/04 OWNERSHIP: SHARES HELD 6/30/2004 6/30/03 TOTAL ---------- -------- ------------ Institutional(1) 20,628,341 5,018,709 51.1% Retail (2) 15,435,252 12,130,162 38.2% Insiders (3) 4,318,743 1,746,051 10.7% ---------- ---------- ----- TOTAL 40,382,336 18,894,922 100.0% [GRAPH OMITTED] (1) Based on 13F filings as of 6/30/04 or most recent filings. (2) Retail ownership equals total shares outstanding minus institutional and insider ownership. (3) Insider holdings as of 1/4/04. (Shares and O.P. Units only. Excludes 474,335 exercisable options). PENNSYLVANIA REIT PREIT PEI [GRAPHIC LISTED QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) OMITTED] NYSE MARKET CAPITALIZATION
JUNE 30, 2004 MARCH 31, 2004 DECEMBER 31, 2003 EQUITY CAPITALIZATION ------------- -------------- ----------------- Shares Outstanding 35,938,306 35,778,863 35,544,265 O.P. Units Outstanding 4,444,030 3,834,714 3,691,516 --------------- --------------- --------------- TOTAL Shares and O.P. Units 40,382,336 39,613,577 39,235,781 Market Price (at end of period) $ 34.25 $ 37.66 $ 36.30 Preferred Shares, Nominal Value $ 123,750,000 $123,750,000 $123,750,000 EQUITY MARKET CAPITALIZATION $ 1,506,845,008 $ 1,615,597,310 $ 1,548,008,850 DEBT CAPITALIZATION Unsecured Debt Balance $ 219,000,000 $ 182,000,000 $ 170,000,000 Secured Debt Balance 1,376,148,003 1,386,313,775 1,396,262,538 --------------- --------------- --------------- DEBT CAPITALIZATION $ 1,595,148,003 $ 1,568,313,775 $ 1,566,262,538 --------------- --------------- --------------- TOTAL MARKET CAPITALIZATION $ 3,101,993,011 $ 3,183,911,085 $ 3,114,271,388 =============== =============== =============== PREFERRED SHARES/TOTAL MARKET CAPITALIZATION 4.0% 3.9% 4.0% SHARES AND O.P. UNITS/TOTAL MARKET CAPITALIZATION 44.6% 46.9% 45.7% DEBT CAPITALIZATION/TOTAL MARKET CAPITALIZATION 51.4% 49.3% 50.3% EQUITY CAPITALIZATION/TOTAL MARKET CAPITALIZATION 48.6% 50.7% 53.6% UNSECURED DEBT BALANCE/TOTAL DEBT 13.7% 11.6% 10.9%
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JUNE 30, 2003 DECEMBER 31, 2002 DECEMBER 31, 2001 EQUITY CAPITALIZATION ------------- ----------------- ----------------- Shares Outstanding 16,837,304 16,697,119 15,876,084 O.P. Units Outstanding 2,057,618 1,763,318 1,753,580 -------------- --------------- ------------- TOTAL Shares and O.P. Units 18,894,922 18,460,437 17,629,664 Market Price (at end of period) $ 29.95 $ 26.00 $ 23.20 Preferred Shares, Nominal Value EQUITY MARKET CAPITALIZATION $ 565,902,914 $ 479,971,362 $ 409,008,205 DEBT CAPITALIZATION Unsecured Debt Balance $ 20,249,935 $ - $ - Secured Debt Balance 816,864,718 617,279,770 506,175,818 -------------- --------------- ------------- DEBT CAPITALIZATION $ 837,114,653 $ 617,279,770 $ 506,175,818 -------------- --------------- ------------- TOTAL MARKET CAPITALIZATION $1,403,017,567 $ 1,097,251,132 $ 915,184,023 =============== =============== ============= PREFERRED SHARES/TOTAL MARKET CAPITALIZATION SHARES AND O.P. UNITS/TOTAL MARKET CAPITALIZATION 40.3% 43.7% 44.7% DEBT CAPITALIZATION/TOTAL MARKET CAPITALIZATION 59.7% 56.3% 55.3% EQUITY CAPITALIZATION/TOTAL MARKET CAPITALIZATION 40.3% 43.7% 44.7% UNSECURED DEBT BALANCE/TOTAL DEBT 2.4% 0.0% 0.0%
[ ] PREFERRED SHARES/TOTAL MARKET CAPITALIZATION [ ] SHARES AND O.P. UNITS/TOTAL MARKET CAPITALIZATION [ ] DEBT CAPITALIZATION/TOTAL MARKET CAPITALIZATION CAPITAL RESOURCES
JUNE 30, 2004 MARCH 31, 2004 DECEMBER 31, 2003 ------------- -------------- ------------------ CASH ON HAND $ 32,002,089 $ 37,024,603 $ 46,883,041 LINE OF CREDIT CAPACITY (1) $ 500,000,000 $ 500,000,000 $ 500,000,000 Amount Used (includes letters of credit) (220,195,000) (183,195,000) (170,500,000) --------------- --------------- --------------- Available LOC (2) $ 279,805,000 $ 316,805,000 $ 329,500,000 SHELF REGISTRATION $ 1,000,000,000 $ 1,000,000,000 $ 1,000,000,000 Amount Used (344,146,042) (344,146,042) (344,146,042) --------------- --------------- --------------- Available Shelf $ 655,853,958 $ 655,853,958 $ 655,853,958 --------------- --------------- --------------- TOTAL CAPITAL RESOURCES $ 967,661,047 $ 1,009,683,561 $ 1,032,236,999 --------------- --------------- --------------- [RESTUBBED TABLE] CAPITAL RESOURCES JUNE 30, 2003 DECEMBER 31, 2002 DECEMBER 31, 2001 ------------- ----------------- ------------------ CASH ON HAND $ 15,035,033 $ 18,628,137 $ 16,242,450 LINE OF CREDIT CAPACITY (1) $ 200,000,000 $ 200,000,000 $ 175,000,000 Amount Used (includes letters of credit) (118,573,671) (131,473,671) (100,168,659) ------------- ------------- ------------- Available LOC (2) $ 81,426,329 $ 68,526,329 $ 74,831,341 SHELF REGISTRATION $ 500,000,000 $ 500,000,000 $ 200,000,000 Amount Used (155,977,292) (155,977,292) (148,925,000) ------------- ------------- ------------- Available Shelf $ 344,022,708 $ 344,022,708 $ 51,075,000 ------------- ------------- ------------- TOTAL CAPITAL RESOURCES $ 440,484,070 $ 431,177,174 $ 142,148,791 ------------- ------------- -------------
(1) The unsecured revolving line of credit from November of 2003 gives PREIT the ability to increase the facility to $650 million under prescribed conditions. (2) The available line of credit is subject to covenants that may restrict amounts that can be borrowed. PENNSYLVANIA REIT PREIT PEI [GRAPHIC LISTED QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) OMITTED] NYSE BALANCE SHEET (Wholly Owned vs. JVs)
------------------------------------------------------------------- June 30, 2004 ------------------------------------------------------------------- PREIT PREIT's % Corporate Combined Wholly Owned of JVs (5) TOTAL ------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties (1) $ 2,457,579,069 $136,339,792 - $ 2,593,918,861 Multifamily Properties - - - - Industrial Properties 2,504,211 - - 2,504,211 Land Held for Development 9,469,893 - - 9,469,893 Construction In Progress 17,519,214 1,505,540 - 19,024,754 ------------------------------------------------------------------- TOTAL INVESTMENTS IN REAL ESTATE 2,487,072,387 137,845,332 - 2,624,917,719 Accumulated Depreciation (116,663,152) (32,847,127) - (149,510,279) ------------------------------------------------------------------- Net Real Estate 2,370,409,235 104,998,205 - 2,475,407,440 ------------------------------------------------------------------- Advances to Partnerships and Joint Ventures - - - ------------------------------------------------------------------- 2,370,409,235 104,998,205 - 2,475,407,440 ------------------------------------------------------------------- Other Assets: Cash and Cash Equivalents 12,315,379 5,848,731 13,837,979 32,002,089 Rents and Other Receivables 22,604,437 7,857,715 989,276 31,451,428 Other assets held for sale (1) 37,190,718 - - 37,190,718 Intangible Assets (2) 159,033,808 - 12,085,313 171,119,121 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 34,659,911 10,795,533 18,785,165 64,240,609 ------------------------------------------------------------------- TOTAL OTHER ASSETS 265,804,253 24,501,979 45,697,733 336,003,965 ------------------------------------------------------------------- TOTAL ASSETS 2,636,213,488 129,500,184 45,697,733 2,811,411,405 =================================================================== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 1,201,777,962 108,594,598 - 1,310,372,560 Mortgage Debt Premium (3) 65,775,443 - 65,775,443 Bank Loans Payable - - 219,000,000 219,000,000 Acquisition Term Loan & Unsecured Line of Credit - - - - Liabilities Related to Assets held for sale 4,261,351 - 4,261,351 Other Liabilities (4) 44,873,595 3,647,421 26,290,223 74,811,239 ------------------------------------------------------------------- TOTAL LIABILITIES 1,316,688,351 112,242,019 245,290,223 1,674,220,593 ------------------------------------------------------------------- Minority Interest 4,247,705 - 129,841,319 134,089,024 ------------------------------------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - 35,938,305 35,938,305 Preferred Shares $0.01 Par 24,750 24,750 Capital Contributed in Excess of Par - - 887,921,188 887,921,188 Restricted Stock - - (9,618,821) (9,618,821) Other Comprehensive Income - - (1,886,164) (1,886,164) Retained Earnings (Distributions in Excess of Net Income) - - 90,722,530 90,722,530 ------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY - - 1,003,101,788 1,003,101,788 ------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,320,936,056 $112,242,019 $ 1,378,233,330 $ 2,811,411,405 ===================================================================
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------------------------------------------------------------------- December 31, 2003 ------------------------------------------------------------------- PREIT PREIT's % Corporate Combined Wholly Owned of JVs (5) TOTAL ------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties (1) $ 2,382,753,911 $ 133,107,107 - $ 2,515,861,018 Multifamily Properties - - - - Industrial Properties 2,504,211 - - 2,504,211 Land Held for Development - - - - 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 ------------------------------------------------------------------- Other Assets: Cash and Cash Equivalents 13,580,334 3,905,956 29,396,751 46,883,041 Rents and Other Receivables 22,860,444 7,991,132 4,814,392 35,665,968 Other assets held for sale (1) 37,686,662 - 37,686,662 Intangible Assets (2) 172,502,487 9,041,888 181,544,375 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 41,095,944 11,942,821 14,319,950 67,358,715 ------------------------------------------------------------------- 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 - - - - 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 ===================================================================
[RESTUBBED TABLE]
-------------------------------------------------------------------- June 30, 2003 -------------------------------------------------------------------- PREIT PREIT's % Corporate Combined Wholly Owned of JVs (5) TOTAL -------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties (1) $ 953,825,117 $ 197,499,583 - $1,151,324,700 Multifamily Properties 66,462,701 5,947,802 - 72,410,503 Industrial Properties 2,504,211 - - 2,504,211 Land Held for Development - - - - Construction In Progress 11,600,909 1,559,524 - 13,160,433 -------------------------------------------------------------------- TOTAL INVESTMENTS IN REAL ESTATE 1,034,392,938 205,006,909 - 1,239,399,847 Accumulated Depreciation (66,565,965) (43,479,796) - (110,045,761) -------------------------------------------------------------------- Net Real Estate 967,826,973 161,527,113 - 1,129,354,086 -------------------------------------------------------------------- Advances to Partnerships and Joint Ventures - - 1,200,000 1,200,000 -------------------------------------------------------------------- 967,826,973 161,527,113 1,200,000 1,130,554,086 -------------------------------------------------------------------- Other Assets: Cash and Cash Equivalents 5,587,071 6,323,226 3,124,736 15,035,033 Rents and Other Receivables 11,885,445 9,022,617 2,014,452 22,922,514 Other assets held for sale (1) 1,475,704 (44,036) - 1,431,668 Intangible Assets (2) 40,338,471 5,155,886 45,494,357 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 27,218,064 12,776,850 11,691,724 51,686,638 -------------------------------------------------------------------- TOTAL OTHER ASSETS 86,504,755 28,078,657 21,986,798 136,570,210 -------------------------------------------------------------------- TOTAL ASSETS 1,054,331,728 189,605,770 23,186,798 1,267,124,296 =================================================================== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 523,864,202 155,488,042 - 679,352,244 Mortgage Debt Premium (3) 19,612,474 19,612,474 Bank Loans Payable 92,506,766 25,393,234 117,900,000 Acquisition Term Loan & Unsecured Line of Credit 20,249,935 - - 20,249,935 Liabilities Related to Assets held for sale 1,119,984 179,955 - 1,299,939 Other Liabilities (4) 22,237,990 5,443,233 14,541,228 42,222,451 -------------------------------------------------------------------- TOTAL LIABILITIES 679,591,351 186,504,464 14,541,228 880,637,043 -------------------------------------------------------------------- Minority Interest 5,680,717 - 56,147,376 61,828,093 -------------------------------------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - 16,837,304 16,837,304 Preferred Shares $0.01 Par - - Capital Contributed in Excess of Par - - 220,081,547 220,081,547 Restricted Stock - - (3,121,496) (3,121,496) Other Comprehensive Income - - (3,238,850) (3,238,850) Retained Earnings (Distributions in Excess of Net Income) - - 94,100,655 94,100,655 -------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY - - 324,659,160 324,659,160 -------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 685,272,068 $ 186,504,464 $395,347,764 $1,267,124,296 ===================================================================
(1) Investment in real estate as of June 30, 2004 and December 31, 2003 includes $96,332,778 and $118,887,475, respectively relating to the non-core properties. The non-core properties are classified as held-for-sale for GAAP purposes. Other assets held for sale represents intangible assets and current assets of the non-core properties. Assets held for sale for GAAP purposes were $133,523,496 and $156,574,137 as of June 30, 2004 and December 31, 2003, respectively. During the first quarter of 2004, PREIT reallocated approximately $20 million of the amount originally allocated to the non-core properties to the other properties acquired in the Crown merger. (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 when a property is purchased. The debt is marked 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 including Deficit JV Investments. (5) Includes PREIT's percent of JVs that is "grossed up" to reflect the Company'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 Company's Equity in these properties. NOTE: Reconciliation to GAAP is on pages 32 to 35. PENNSYLVANIA REIT PREIT PEI [GRAPHIC LISTED QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) OMITTED] NYSE BALANCE SHEET (1) (Line of Business)
--------------------------------------------------------------------------------------------- June 30, 2004 --------------------------------------------------------------------------------------------- Power and Total Other Combined Malls Strip Centers Retail Properties Corporate TOTAL --------------------------------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost (2) $ 2,276,713,325 $ 317,205,536 $2,593,918,861 $30,998,858 $ - $2,624,917,719 ============================================================================================= Accumulated Depreciation (103,713,678) (43,694,750) (147,408,428) (2,101,851) - (149,510,279) ============================================================================================= Net Real Estate 2,172,999,647 273,510,786 2,446,510,433 28,897,007 - 2,475,407,440 ============================================================================================= Investments in PREIT-RUBIN Advances to Partnerships and Joint Ventures - - - - - Advances to PREIT-RUBIN - --------------------------------------------------------------------------------------------- 2,172,999,647 273,510,786 2,446,510,433 28,897,007 - 2,475,407,440 --------------------------------------------------------------------------------------------- Allowance for Possible Losses - - - - --------------------------------------------------------------------------------------------- 2,172,999,647 273,510,786 2,446,510,433 28,897,007 - 2,475,407,440 --------------------------------------------------------------------------------------------- Other Assets: Cash 12,970,710 5,193,400 18,164,110 13,837,979 32,002,089 Other assets held for sale 37,190,718 37,190,718 - 37,190,718 Intangible Assets (3) 159,033,808 159,033,808 12,085,313 171,119,121 Other Assets, Net (4) 39,884,604 24,188,926 64,073,530 11,844,066 19,774,441 95,692,037 --------------------------------------------------------------------------------------------- Total Other Assets 249,079,840 29,382,326 278,462,166 11,844,066 45,697,733 336,003,965 --------------------------------------------------------------------------------------------- TOTAL ASSETS 2,422,079,487 302,893,112 2,724,972,599 40,741,073 45,697,733 2,811,411,405 ============================================================================================= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 1,221,806,912 88,565,648 1,310,372,560 - - 1,310,372,560 Mortgage Debt Premium (5) 65,775,443 - 65,775,443 - 65,775,443 Bank Loans Payable - - 219,000,000 219,000,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Construction Loans - - - - - - Liabilities Related to Assets held for sale 4,261,351 4,261,351 - - 4,261,351 Other Liabilities (6) 38,911,155 5,131,022 44,042,177 4,478,839 26,290,223 74,811,239 TOTAL LIABILITIES 1,330,754,861 93,696,670 1,424,451,531 4,478,839 245,290,223 1,674,220,593 ============================================================================================= Minority Interest 4,247,705 4,247,705 - 129,841,319 134,089,024 --------------------------------------------------------------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - - 35,938,305 35,938,305 Preferred Shares $0.01 Par 24,750 24,750 Capital Contributed in Excess of Par - - - 887,921,188 887,921,188 Restricted Stock - - - (9,618,821) (9,618,821) Other Comprehensive Income - - - (1,886,164) (1,886,164) Retained Earnings (Distributions in Excess of Net Income) - - - 90,722,530 90,722,530 --------------------------------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY - - - - 1,003,101,788 1,003,101,788 --------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,335,002,566 $ 93,696,670 $1,428,699,236 $4,478,839 $ 1,378,233,330 $2,811,411,405 =============================================================================================
[RESTUBBED TABLE] BALANCE SHEET (1) (Line of Business)
---------------------------------------------------------------------------------------------- December 31, 2003 ---------------------------------------------------------------------------------------------- Power and Total Other Combined Malls Strip Centers Retail Properties Corporate TOTAL ---------------------------------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost (2) $2,217,101,551 $298,759,467 $2,515,861,018 $24,241,202 $ - $ 2,540,102,220 ============================================================================================== Accumulated Depreciation (68,469,015) (39,522,565) (107,991,580) (2,076,771) - (110,068,351) ============================================================================================== Net Real Estate 2,148,632,536 259,236,902 2,407,869,438 22,164,431 - 2,430,033,869 ============================================================================================== 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 - 2,430,033,869 ---------------------------------------------------------------------------------------------- Allowance for Possible Losses - - - - ---------------------------------------------------------------------------------------------- 2,148,632,536 259,236,902 2,407,869,438 22,164,431 - 2,430,033,869 ---------------------------------------------------------------------------------------------- Other Assets: Cash 13,158,371 4,327,918 17,486,289 29,396,751 46,883,040 Other assets held for sale 37,686,662 - 37,686,662 37,686,662 Intangible Assets (3) 172,502,487 - 172,502,487 9,041,888 181,544,375 Other Assets, Net (4) 42,915,526 24,994,311 67,909,837 15,980,505 19,134,342 103,024,684 ---------------------------------------------------------------------------------------------- Total Other Assets 266,263,046 29,322,229 295,585,275 15,980,505 57,572,981 369,138,761 ---------------------------------------------------------------------------------------------- TOTAL ASSETS 2,414,895,582 288,559,131 2,703,454,713 38,144,936 57,572,981 2,799,172,630 ============================================================================================== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 1,231,569,258 89,205,037 1,320,774,295 - - 1,320,774,295 Mortgage Debt Premium (5) 75,488,243 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 - - 5,840,385 Other Liabilities (6) 40,094,056 6,010,869 46,104,925 4,113,008 40,566,634 90,784,567 TOTAL LIABILITIES 1,352,991,942 95,215,906 1,448,207,848 4,113,008 210,566,634 1,662,887,490 ============================================================================================== Minority Interest 8,464,264 126,715 8,590,979 - 104,060,548 112,651,527 ---------------------------------------------------------------------------------------------- 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 $1,361,456,206 $ 95,342,621 $ 1,456,798,827 $4,113,008 $ 1,338,260,795 $ 2,799,172,630 =============================================================================================
[RESTUBBED TABLE] BALANCE SHEET (1) (Line of Business)
----------------------------------------------------------------------------------- June 30, 2003 Other Combined Retail Multifamily Properties Corporate TOTAL ----------------------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost (2) $ 1,151,324,700 $ 72,410,503 $15,664,644 $ - $ 1,239,399,847 =================================================================================== Accumulated Depreciation (86,614,873) (21,379,445) (2,051,443) - (110,045,761) =================================================================================== Net Real Estate 1,064,709,827 51,031,058 13,613,201 - 1,129,354,086 =================================================================================== Investments in PREIT-RUBIN Advances to Partnerships and Joint Ventures - - - 1,200,000 1,200,000 Advances to PREIT-RUBIN ----------------------------------------------------------------------------------- 1,064,709,827 51,031,058 13,613,201 1,200,000 1,130,554,086 ----------------------------------------------------------------------------------- Allowance for Possible Losses - - - - - ----------------------------------------------------------------------------------- 1,064,709,827 51,031,058 13,613,201 1,200,000 1,130,554,086 ----------------------------------------------------------------------------------- Other Assets: Cash 10,721,507 1,188,790 - 3,124,736 15,035,033 Other assets held for sale 1,431,668 - Intangible Assets (3) 40,338,471 5,155,886 45,494,357 Other Assets, Net (4) 51,011,940 9,891,036 13,706,176 74,609,152 ----------------------------------------------------------------------------------- Total Other Assets 102,071,918 2,620,458 9,891,036 21,986,798 136,570,210 ----------------------------------------------------------------------------------- TOTAL ASSETS 1,166,781,745 53,651,516 23,504,237 23,186,798 1,267,124,296 =================================================================================== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 642,016,704 37,335,540 - - 679,352,244 Mortgage Debt Premium (5) 19,612,474 - - - 19,612,474 Bank Loans Payable 87,553,496 - 30,346,504 - 117,900,000 Acquisition Term Loan & Unsecured Line of Credit 20,249,935 - - - 20,249,935 Construction Loans - - - - - Liabilities Related to Assets held for sale - 1,299,939 - - 1,299,939 Other Liabilities (6) 24,849,397 - 2,831,826 14,541,228 42,222,451 TOTAL LIABILITIES 794,282,006 38,635,479 33,178,330 14,541,228 880,637,043 =================================================================================== Minority Interest 5,680,717 - 56,147,376 61,828,093 ----------------------------------------------------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - - 16,837,304 16,837,304 Preferred Shares $0.01 Par Capital Contributed in Excess of Par - - - 220,081,547 220,081,547 Restricted Stock - - - (3,121,496) (3,121,496) Other Comprehensive Income - - - (3,238,850) (3,238,850) Retained Earnings (Distributions in Excess of Net Income) - - - 94,100,655 94,100,655 ----------------------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY - - - 324,659,160 324,659,160 ----------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 799,962,723 $ 38,635,479 $33,178,330 $ 395,347,764 $ 1,267,124,296 ===================================================================================
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Company'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) Investment in real estate as of June 30, 2004 and December 31, 2003 includes $96,332,778 and $118,887,475, respectively relating to the non-core properties. The non-core properties are classified as held-for-sale for GAAP purposes. Other assets held for sale represents intangible assets and current assets of the non-core properties. Assets held for sale for GAAP purposes were $133,523,496 and $156,574,137 as of June 30, 2004 and December 31, 2003, respectively. During the first quarter of 2004, PREIT reallocated approximately $20 million of the amount originally allocated to the non-core properties to the other properties acquired in the Crown merger. (3) 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. (4) Deferred Costs, Prepaid Taxes and Expenses and Other Assets include Rents and Other Receivables for Partnerships and Joint Ventures. (5) Represents premium that is recorded in connection with debt assumed in connection with property purchases. The debt is marked to market at the acquisition date and the premium is amortized through interest expense over the remaining term of the debt. (6) For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses and Other Liabilities including Deficit JV Investments. NOTE: Reconciliation to GAAP is on pages 32 to 35. PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] INCOME STATEMENT (1) QUARTERLY COMPARISON
(Wholly Owned vs. JV) Q2 04 (3 MONTHS ENDED 6/30/04) -------------------------------------------------------------------------------- ---------- WHOLLY OWNED JVS CORPORATE COMBINED TOTAL % TOTAL CHANGE -------------------------------------------------------------------------------- ---------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ 65,645,467 $ 5,295,006 $ - 70,940,473 88.1% Straight-Lining of Base Rents 1,206,595 11,480 - 1,218,075 99.0% Percentage Rents 1,397,974 (102,372) - 1,295,602 349.6% Expense Reimbursables 30,076,550 1,716,739 31,793,289 178.8% Lease Termination 983,379 - - 983,379 N/A Other Real Estate Revenues 2,200,737 254,498 - 2,455,235 66.5% --------------------------------------------------------------------------------- ---------- TOTAL REVENUES 101,510,702 93% 7,175,351 7% $ - 0% 108,686,053 110.8% -------------------------------------------------------------------------------- ---------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 28,368,973 1,700,315 - 30,069,288 113.0% Real Estate Taxes 9,990,778 513,124 - 10,503,902 124.2% Minority Interest in Properties 219,384 - 219,384 N/A -------------------------------------------------------------------------------- ---------- TOTAL EXPENSES 38,579,135 95% 2,213,439 5% - 0% 40,792,574 114.6% -------------------------------------------------------------------------------- ---------- -------------------------------------------------------------------------------- ========== NET OPERATING INCOME 62,931,567 93% 4,961,912 7% - 0% 67,893,479 108.6% ================================================================================ ========== OTHER INCOME (EXPENSES) Management Company Revenue - - 1,736,239 1,736,239 -52.5% Interest and Other Income - - 432,403 432,403 123.9% GENERAL & ADMINISTRATIVE: Corporate Payroll - - (6,204,872) (6,204,872) 57.2% Other G&A Expenses - - (5,572,969) (5,572,969) 56.1% -------------------------------------------------------------------------------- ========== EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 62,931,567 108% 4,961,912 9% (9,609,199) -16% 58,284,280 101.8% ================================================================================ ========== Interest Expense (2)(3) (17,060,967) (2,171,992) (1,576,215) (20,809,174) 48.9% Depreciation & Amortization (23,667,734) (1,141,390) - (24,809,124) 198.2% -------------------------------------------------------------------------------- ---------- TOTAL OTHER INCOME (EXPENSES) (40,728,701) (3,313,382) (1,576,215) (45,618,298) 104.6% -------------------------------------------------------------------------------- ---------- Gains (losses) on sales of interests in Real Estate - - - N/A -------------------------------------------------------------------------------- ---------- Income before Minority Interest 22,202,866 1,648,530 (11,185,414) 12,665,982 16.1% -------------------------------------------------------------------------------- ---------- Minority Interest of O.P. Unitholders - - (1,052,624) (1,052,624) 27.8% -------------------------------------------------------------------------------- ---------- Income from Operations 22,202,866 1,648,530 (12,238,038) 11,613,358 15.1% -------------------------------------------------------------------------------- ---------- DISCONTINUED OPERATIONS: Income from Disposed Real Estate - - N/A Minority Interest of O.P. Unitholders (221,615) (221,615) N/A Gain (losses) on Disposition of Discontinued Operations - - N/A -------------------------------------------------------------------------------- ---------- TOTAL DISCONTINUED OPERATIONS - - (221,615) (221,615) N/A -------------------------------------------------------------------------------- ---------- Extraordinary item (Loss on early extinguishment of debt) - - N/A -------------------------------------------------------------------------------- ---------- NET INCOME $ 22,202,866 195% $ 1,648,530 14% $ (12,459,653) -109% $ 11,391,743 -92.1% ================================================================================ ==========
(Wholly Owned vs. JV) Q2 03 (3 MONTHS ENDED 6/30/03) ------------------------------------------------------------------------------ WHOLLY OWNED JVS CORPORATE COMBINED TOTAL ------------------------------------------------------------------------------ REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ 30,487,264 $ 7,228,316 $ - $ 37,715,580 Straight-Lining of Base Rents 557,938 54,198 - 612,136 Percentage Rents 205,350 82,791 - 288,141 Expense Reimbursables 8,933,230 2,468,872 11,402,102 Lease Termination 62,214 6,239 - 68,453 Other Real Estate Revenues 1,144,078 330,638 - 1,474,716 ------------------------------------------------------------------------------ TOTAL REVENUES 41,390,074 80% 10,171,054 20% $ - 0% 51,561,128 ------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 11,276,214 2,839,652 - 14,115,866 Real Estate Taxes 3,839,101 846,218 - 4,685,319 Minority Interest in Properties 207,167 207,167 ------------------------------------------------------------------------------- TOTAL EXPENSES 15,322,482 81% 3,685,870 19% - 0% 19,008,352 ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- NET OPERATING INCOME 26,067,592 80% 6,485,184 20% - 0% 32,552,776 =============================================================================== OTHER INCOME (EXPENSES) Management Company Revenue - - 3,654,460 3,654,460 Interest and Other Income - - 193,127 193,127 GENERAL & ADMINISTRATIVE: Corporate Payroll - - (3,948,117) (3,948,117) Other G&A Expenses - - (3,569,291) (3,569,291) ------------------------------------------------------------------------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 26,067,592 90% 6,485,184 22% (3,669,821) -13% 28,882,955 =============================================================================== Interest Expense (2)(3) (9,931,193) (4,043,922) - (13,975,115) Depreciation & Amortization (6,994,165) (1,324,953) (8,319,118) ------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (16,925,358) (5,368,875) - (22,294,233) ------------------------------------------------------------------------------- Gains (losses) on sales of interests in Real Estate (79,800) 4,401,603 - 4,321,803 ------------------------------------------------------------------------------- Income before Minority Interest 9,062,434 5,517,912 (3,669,821) 10,910,525 ------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders - - (823,758) (823,758) ------------------------------------------------------------------------------- Income from Operations 9,062,434 5,517,912 (4,493,579) 10,086,767 ------------------------------------------------------------------------------- DISCONTINUED OPERATIONS: Income from Disposed Real Estate - - - - Minority Interest of O.P. Unitholders (15,649,831) (15,649,831) Gain (losses) on Disposition of Discontinued Operations 150,200,805 150,200,805 ------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS 150,200,805 (15,649,831) 134,550,974 ------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - ------------------------------------------------------------------------------- NET INCOME $ 159,263,239 110% $ 5,517,912 4% $ (20,143,410) -14% $ 144,637,741 ===============================================================================
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Company'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) Capitalized interest expense for the line of credit and construction loans of $424,554 is not included in the quarter ended 6/30/04 and $367,111 is not included in the quarter ended 6/30/03. (3) Interest expense from bank loans are classified as corporate in 2004. NOTE: RECONCILIATION TO GAAP IS ON PAGES 32 TO 35. PAGE 7 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] INCOME STATEMENT (1) QUARTERLY COMPARISON (Line of Business)
Q2 04 (3 MONTHS ENDED 6/30/04) --------------------------------------------------------------------------------------------- OTHER COMBINED TOTAL % RETAIL PROPERTIES CORPORATE TOTAL CHANGE --------------------------------------------------------------------------------------------- REAL ESTATE OPERATING REVENUES Base Rents $ 70,855,317 $ 85,156 $ - $ 70,940,473 82.8% Less Vacancies and Concessions - - - - -100.0% Straight-Lining of Base Rents 1,218,075 - - 1,218,075 99.0% Percentage Rents 1,295,602 - - 1,295,602 349.6% Expense Reimbursables 31,781,614 11,675 31,793,289 178.8% Lease Termination 983,379 - - 983,379 N/A Other Real Estate Revenues 2,455,235 - - 2,455,235 66.5% --------------------------------------------------------------------------------------------- TOTAL REVENUES 108,589,222 100% 96,831 0% - - 108,686,053 110.8% --------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 30,066,063 3,225 - 30,069,288 113.0% Real Estate Taxes 10,494,852 9,050 - 10,503,902 124.2% Minority Interest in Properties 219,384 - - 219,384 N/A --------------------------------------------------------------------------------------------- TOTAL EXPENSES 40,780,299 100% 12,275 0% - - 40,792,574 114.6% --------------------------------------------------------------------------------------------- ============================================================================================= NET OPERATING INCOME 67,808,923 100% 84,556 0% - 67,893,479 108.6% ============================================================================================= OTHER INCOME (EXPENSES) Management Company Revenue - - 1,736,239 1,736,239 -52.5% Interest and Other Income - - 432,403 432,403 123.9% GENERAL AND ADMINISTRATIVE: Corporate Payroll - - (6,204,872) (6,204,872) 57.2% Other General & Administrative - - (5,572,969) (5,572,969) 56.1% ============================================================================================= EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 67,808,923 116% 84,55 0% (9,609,199) -16% 58,284,280 101.8% ============================================================================================= Interest Expense (2)(3) (19,232,959) - (1,576,215) (20,809,174) 48.9% Depreciation & Amortization (24,796,584) (12,540) - (24,809,124) 198.2% --------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (44,029,543) (12,540) (1,576,215) (45,618,298) 104.6% --------------------------------------------------------------------------------------------- Gains(losses) on sales of interests in Real Estate - - - - N/A --------------------------------------------------------------------------------------------- Income before Minority Interest 23,779,380 72,016 (11,185,414) 12,665,982 16.1% --------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders - - (1,052,624) (1,052,624) -27.8% --------------------------------------------------------------------------------------------- Income from Operations 23,779,380 72,016 (12,238,038) 11,613,358 -15.1% --------------------------------------------------------------------------------------------- DISCONTINUED OPERATIONS: Income from Disposed Real Estate - - - - N/A Minority Interest of O.P. Unitholders - - (221,615) (221,615) N/A Gain (losses) on Disposition of Discontinued Operations - - - - N/A --------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - - (221,615) (221,615) N/A --------------------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - - N/A --------------------------------------------------------------------------------------------- NET INCOME $ 23,779,380 209% $ 72,016 1% $ (12,459,653) -109% $ 11,391,743 -92.1% =============================================================================================
Q2 03 (3 MONTHS ENDED 6/30/03) -------------------------------------------------------------------------------------------- OTHER COMBINED RETAIL MULTIFAMILY PROPERTIES CORPORATE TOTAL -------------------------------------------------------------------------------------------- REAL ESTATE OPERATING REVENUES Base Rents $ 27,434,524 $ 11,295,625 $ 83,421 $ - $ 38,813,570 Less Vacancies and Concessions - (1,097,990) - - (1,097,990) Straight-Lining of Base Rents 612,136 - - - 612,136 Percentage Rents 288,141 - - - 288,141 Expense Reimbursables 11,402,102 - - - 11,402,102 Lease Termination 6,239 62,214 - - 68,453 Other Real Estate Revenues 1,093,731 380,985 - - 1,474,716 -------------------------------------------------------------------------------------------- TOTAL REVENUES 40,836,873 79% 10,640,834 21% 83,421 0% - - 51,561,128 -------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 9,832,482 4,279,586 3,798 - 14,115,866 Real Estate Taxes 3,700,646 983,776 897 - 4,685,319 Minority Interest in Properties 207,167 - - - 207,167 -------------------------------------------------------------------------------------------- TOTAL EXPENSES 13,740,295 72% 5,263,362 28% 4,695 0% - - 19,008,352 -------------------------------------------------------------------------------------------- ============================================================================================ NET OPERATING INCOME 27,096,578 83% 5,377,472 17% 78,726 0% - - 32,552,776 ============================================================================================ OTHER INCOME (EXPENSES) Management Company Revenue - - - 3,654,460 3,654,460 Interest and Other Income - - - 193,127 193,127 GENERAL AND ADMINISTRATIVE: Corporate Payroll - - - (3,948,117) (3,948,117) Other General & Administrative - - - (3,569,291) (3,569,291) ============================================================================================ EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 27,096,578 94% 5,377,472 19% 78,726 0% (3,669,821) -13% 28,882,955 ============================================================================================ Interest Expense (2)(3) (12,088,601) (1,886,514) - - (13,975,115) Depreciation & Amortization (8,306,203) - (12,915) - (8,319,118) -------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (20,394,804) (1,886,514) (12,915) - (22,294,233) -------------------------------------------------------------------------------------------- Gains(losses) on sales of interests in Real Estate (79,800) 4,401,603 - - 4,321,803 -------------------------------------------------------------------------------------------- Income before Minority Interest 6,621,974 7,892,561 65,811 (3,669,821) 10,910,525 -------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders - - - (823,758) (823,758) -------------------------------------------------------------------------------------------- Income from Operations 6,621,974 7,892,561 65,811 (4,493,579) 10,086,767 -------------------------------------------------------------------------------------------- DISCONTINUED OPERATIONS: Income from Disposed Real Estate - - - - - Minority Interest of O.P. Unitholders - - - (15,649,831) (15,649,831) Gain (losses) on Disposition of Discontinued Operations - 150,200,805 - - 150,200,805 -------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - 150,200,805 - (15,649,831) 134,550,974 -------------------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - - - -------------------------------------------------------------------------------------------- NET INCOME $ 6,621,974 5% $ 158,093,366 109% $ 65,811 0% $(20,143,410) -14% $144,637,741 ============================================================================================
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Company'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) Capitalized interest expense for the line of credit and construction loans of $424,554 is not included in the quarter ended 6/30/04 and $367,111 is not included in the quarter ended 6/30/03. (3) Interest expense from bank loans are classified as corporate in 2004. NOTE:RECONCILIATION TO GAAP IS ON PAGES 32 TO 35. PAGE 8 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] RETAIL INCOME STATEMENT (1) QUARTERLY COMPARISON (Property Status)
Q2 04 (3 MONTHS ENDED 6/30/04) ------------------------------------------------------------------------------------------ COMBINED % CHANGE % CHANGE % CHANGE TOTAL WO JVS TOTAL WO JVS ------------------------------------------------------------------------------------------ R.E. OPERATING REVENUES Base Rents $70,855,317 $ 65,560,311 $ 5,295,006 158.3% 213.3% -18.6% Straight-Lining of Base Rents 1,218,075 1,206,595 11,480 99.0% 116.3% -78.8% Percentage Rents 1,295,602 1,397,974 (102,372) 349.6% 580.8% -223.7% Expense Reimbursables 31,781,614 30,064,875 1,716,739 178.7% 236.6% -30.5% Lease Termination and Other Income 983,379 983,379 - N/A N/A N/A Other Real Estate Revenues 2,455,235 2,200,737 254,498 124.5% 179.7% -17.1% ------------------------------------------------------------------------------------------ TOTAL REVENUES 108,589,222 101,413,871 93% 7,175,351 7% 165.9% 222.9% -23.9% ------------------------------------------------------------------------------------------ R.E. OPERATING EXPENSES Operating and Maintenance 30,066,063 28,365,748 1,700,315 205.8% 290.3% -33.7% Real Estate Taxes 10,494,852 9,981,728 513,124 183.6% 242.4% -34.7% Minority Interest in Properties 219,384 219,384 - N/A N/A N/A ------------------------------------------------------------------------------------------ Total Operating Expenses 40,780,299 38,566,860 95% 2,213,439 5% 196.8% 271.2% -33.9% ========================================================================================== NET OPERATING INCOME 67,808,923 62,847,011 93% 4,961,912 7% 150.2% 199.0% -18.3% ========================================================================================== OTHER INCOME (EXP.) Interest Expense (19,232,959) (17,060,967) (2,171,992) 59.1% 108.3% -44.3% Depreciation & Amortization (24,796,584) (23,655,194) (1,141,390) 198.5% 238.8% -13.9% ------------------------------------------------------------------------------------------ TOTAL OTHER INCOME (EXP.) (44,029,543) (40,716,161) (3,313,382) 115.9% 168.4% -36.6% ------------------------------------------------------------------------------------------ Gains (losses) on sales of int. in R.E - - - N/A N/A N/A ------------------------------------------------------------------------------------------ Income before Minority Int. 23,779,380 22,130,850 1,648,530 259.1% 283.6% 93.4% ------------------------------------------------------------------------------------------ DISCONTINUED OPERATIONS: - ------------------------------------------------------------------------------------------ Income from Disposed Real Estate - - N/A 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 extinguishments of debt) - - - N/A N/A N/A ------------------------------------------------------------------------------------------ NET INCOME $23,779,380 $ 22,130,850 93% $ 1,648,530 7% 259.1% 283.6% 93.4% ==========================================================================================
Q2 03 (3 MONTHS ENDED 6/30/03) ------------------------------------------------------------- COMBINED TOTAL WO JVS ------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents $27,434,524 $ 20,926,888 $ 6,507,636 Straight-Lining of Base Rents 612,136 557,938 54,198 Percentage Rents 288,141 205,350 82,791 Expense Reimbursables 11,402,102 8,933,230 2,468,872 Lease Termination and Other Income 6,239 - 6,239 Other Real Estate Revenues 1,093,731 786,822 306,909 ------------------------------------------------------------- TOTAL REVENUES 40,836,873 31,410,228 77% 9,426,645 23% ------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 9,832,482 7,267,079 2,565,403 Real Estate Taxes 3,700,646 2,915,065 785,581 Minority Interest in Properties 207,167 207,167 - ------------------------------------------------------------- Total Operating Expenses 13,740,295 10,389,311 76% 3,350,984 24% ============================================================= NET OPERATING INCOME 27,096,578 21,020,917 78% 6,075,661 22% ============================================================= OTHER INCOME (EXP.) Interest Expense (12,088,601) (8,190,465) (3,898,136) Depreciation & Amortization (8,306,203) (6,981,250) (1,324,953) ------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (20,394,804) (15,171,715) (5,223,089) ------------------------------------------------------------- Gains (losses) on sales of int. in R.E (79,800) (79,800) - ------------------------------------------------------------- Income before Minority Int. 6,621,974 5,769,402 852,572 ------------------------------------------------------------- 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 $ 6,621,974 $ 5,769,402 87% $ 852,572 13% =============================================================
SAME STORE COMPARISON ---------------------
Q2 04 (3 MONTHS ENDED 6/30/03) ------------------------------------------------------------------------------------------- COMBINED % CHANGE TOTAL SAME NEW REDEV DIVEST SAME STORE ------------------------------------------------------------------------------------------- Base Rents $70,855,317 $ 15,894,549 $ 52,790,806 $ 2,169,963 $ - 4.7% Straight-Lining of Base Rents 1,218,075 148,945 1,050,253 18,878 - -39.9% Percentage Rents 1,295,602 (32,258) 1,267,802 60,058 - -115.0% Expense Reimbursables 31,781,614 4,550,266 26,086,579 1,144,769 - 9.8% Lease Termination 983,379 - 983,379 - - N/A Other Real Estate Revenues 2,455,235 446,964 1,925,973 82,298 - 4.8% ------------------------------------------------------------------------------------------- TOTAL REVENUES 108,589,222 21,008,465 19% 84,104,791 77% 3,475,966 3% - 0% 3.9% ------------------------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 30,066,063 4,045,426 25,254,759 765,879 - 3.4% Real Estate Taxes 10,494,852 1,628,640 8,634,314 231,899 - 1.9% Minority Interest in Properties 219,384 - 219,384 - N/A ------------------------------------------------------------------------------------------- Total Operating Expenses 40,780,299 5,674,065 14% 34,108,456 84% 997,778 2% - 0% 2.9% =========================================================================================== NET OPERATING INCOME 67,808,923 15,334,400 23% 49,996,335 74% 2,478,188 4% - 0% 4.3% =========================================================================================== OTHER INCOME (EXP.) Interest Expense (19,232,959) (4,737,055) (13,727,698) (768,206) - -27.4% Depreciation & Amortization (24,796,584) (4,533,640) (19,713,677) (549,268) - -8.7% ------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (44,029,543) (9,270,695) (33,441,375) (1,317,474) - -19.3% ------------------------------------------------------------------------------------------- Gain (losses) on sales of int. in R.E. - - - N/A ------------------------------------------------------------------------------------------- Income before Minority Int. 23,779,380 6,063,706 16,554,961 1,160,714 - 88.8% ------------------------------------------------------------------------------------------- DISCONTINUED OPERATIONS: Income from Disposed Real Estate - - - - N/A Gain (losses) on Disposition of Discontinued Operations - - N/A ------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - - - N/A ------------------------------------------------------------------------------------------- Extraordinary item (Loss on - - - - - N/A early extinguishment of debt) ------------------------------------------------------------------------------------------- NET INCOME $23,779,380 $ 6,063,706 25% $ 16,554,961 70% $ 1,160,714 5% $ - 0% 88.8% ===========================================================================================
Q2 03 (3 MONTHS ENDED 6/30/04) ------------------------------------------------------------------------------------- COMBINED TOTAL SAME NEW REDEV DIVEST ------------------------------------------------------------------------------------- Base Rents $27,434,524 $ 15,182,508 $ 10,189,785 $2,062,231 $ - Straight-Lining of Base Rents 612,136 247,928 346,478 17,730 - Percentage Rents 288,141 215,706 46,089 26,346 - Expense Reimbursables 11,402,102 4,142,418 6,458,819 800,865 - Lease Termination 6,239 - 6,239 - - Other Real Estate Revenues 1,093,731 426,559 543,822 123,350 - ------------------------------------------------------------------------------------- TOTAL REVENUES 40,836,873 20,215,119 50% 17,591,232 43% 3,030,522 7% - ------------------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 9,832,482 3,913,834 5,139,067 779,581 - Real Estate Taxes 3,700,646 1,598,374 1,886,490 215,782 - Minority Interest in Properties 207,167 - 207,167 - - ------------------------------------------------------------------------------------- Total Operating Expenses 13,740,295 5,512,208 40% 7,232,724 53% 995,363 7% - ===================================================================================== NET OPERATING INCOME 27,096,578 14,702,911 54% 10,358,508 38% 2,035,159 8% - ===================================================================================== OTHER INCOME (EXP.) Interest Expense (12,088,601) (6,525,679) (4,785,204) (777,718) - Depreciation & Amortization (8,306,203) (4,965,924) (2,662,685) (677,594) - ------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (20,394,804) (11,491,603) (7,447,889) (1,455,312) - ------------------------------------------------------------------------------------- Gain (losses) on sales of int. in R.E. (79,800) (79,800) - ------------------------------------------------------------------------------------- Income before Minority Int. 6,621,974 3,211,308 2,830,819 579,847 - ------------------------------------------------------------------------------------- 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 $ 6,621,974 $ 3,211,308 48% $ 2,830,819 43% $ 579,847 9% $ - =====================================================================================
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Company'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. NOTE: RECONCILIATION TO GAAP IS ON PAGES 32 TO 35. PAGE 9 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] RETAIL INCOME STATEMENT (1) QUARTERLY COMPARISON (Property Subtype)
Q2 04 (3 MONTHS ENDED 6/30/04) ---------------------------------------------------------------------------- COMBINED ENCLOSED POWER STRIP TOTAL MALL CENTER CENTER ---------------------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 70,855,317 $ 62,546,597 $ 6,717,821 $ 1,590,899 Straight-Lining of Base Rents 1,218,075 1,104,774 113,520 (219) Percentage Rents 1,295,602 1,267,634 27,968 - Expense Reimbursables 31,781,614 30,058,873 1,362,911 359,830 Lease Termination and Other Income 983,379 983,379 - - Other Real Estate Revenues 2,455,235 2,416,869 34,495 3,871 ---------------------------------------------------------------------------- TOTAL REVENUES 108,589,222 98,378,126 91% 8,256,715 8% 1,954,381 2% ---------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 30,066,063 28,813,920 883,391 368,752 Real Estate Taxes 10,494,852 9,466,259 827,858 200,735 Minority Interest in Properties 219,384 219,384 - - ---------------------------------------------------------------------------- Total Operating Expenses 40,780,299 38,499,563 94% 1,711,249 4% 569,487 1% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- NET OPERATING INCOME 67,808,923 59,878,563 88% 6,545,466 10% 1,384,894 2% ---------------------------------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (19,232,959) (17,470,567) (1,725,898) (36,494) Depreciation & Amortization (24,796,584) (22,099,137) (1,873,166) (824,281) ---------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (44,029,543) (39,569,704) (3,599,064) (860,775) ---------------------------------------------------------------------------- Gains (losses) on sales of int. in R.E. - - - - ---------------------------------------------------------------------------- Income before Minority Int. 23,779,380 20,308,859 2,946,402 524,119 ---------------------------------------------------------------------------- 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 $ 23,779,380 $ 20,308,859 85% $ 2,946,402 12% $ 524,119 2% ----------------------------------------------------------------------------
------------------------------------------------------------------------ % CHANGE % CHANGE % CHANGE % CHANGE ENCLOSED POWER STRIP TOTAL MALL CENTER CENTER ------------------------------------------------------------------------ R.E. OPERATING REVENUES Base Rents 158.3% 223.2% 2.9% 2.3% Straight-Lining of Base Rents 99.0% 160.1% -21.0% -100.5% Percentage Rents 349.6% 485.5% -60.0% N/A Expense Reimbursables 178.7% 206.7% 12.2% -7.0% Lease Termination and Other Income N/A N/A N/A N/A Other Real Estate Revenues 124.5% 126.2% 78.8% -36.8% ------------------------------------------------------------------------ TOTAL REVENUES 165.9% 218.7% 3.6% -1.9% ------------------------------------------------------------------------ R.E. OPERATING EXPENSES Operating and Maintenance 205.8% 232.3% 7.6% 7.9% Real Estate Taxes 183.6% 241.2% 12.9% 4.2% Minority Interest in Properties N/A N/A N/A N/A ------------------------------------------------------------------------ Total Operating Expenses 196.8% 230.4% 10.1% 6.6% ------------------------------------------------------------------------ ------------------------------------------------------------------------ NET OPERATING INCOME 150.2% 211.6% 2.0% -5.1% ------------------------------------------------------------------------ OTHER INCOME (EXP.) Interest Expense 59.1% 120.1% -58.1% -2.9% Depreciation & Amortization 198.5% 270.4% -2.6% 97.1% ------------------------------------------------------------------------ TOTAL OTHER INCOME (EXP.) 115.9% 184.6% -40.4% 88.8% ------------------------------------------------------------------------ Gains (losses) on sales of int. in R.E. N/A N/A N/A N/A ------------------------------------------------------------------------ Income before Minority Int. 259.1% 282.0% 671.3% -43.2% ------------------------------------------------------------------------ DISCONTINUED OPERATIONS: ------------------------------------------------------------------------ Income from Disposed Real Estate N/A 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 259.1% 282.0% 671.3% -43.2% ------------------------------------------------------------------------
Q2 03 (3 MONTHS ENDED 6/30/03) ---------------------------------------------------------------------------- COMBINED ENCLOSED POWER STRIP TOTAL MALL CENTER CENTER ---------------------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 27,434,524 $ 19,354,200 $ 6,525,930 $ 1,554,394 Straight-Lining of Base Rents 612,136 424,720 143,651 43,765 Percentage Rents 288,141 216,497 69,994 1,650 Expense Reimbursables 11,402,102 9,800,253 1,214,739 387,110 Lease Termination and Other Income 6,239 6,239 - - Other Real Estate Revenues 1,093,731 1,068,315 19,293 6,123 ---------------------------------------------------------------------------- TOTAL REVENUES 40,836,873 30,870,224 76% 7,973,607 20% 1,993,042 5% ---------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 9,832,482 8,669,950 820,795 341,737 Real Estate Taxes 3,700,646 2,774,771 733,276 192,599 Minority Interest in Properties 207,167 207,167 - - ---------------------------------------------------------------------------- Total Operating Expenses 13,740,295 11,651,888 85% 1,554,071 11% 534,336 4% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- NET OPERATING INCOME 27,096,578 19,218,336 71% 6,419,536 24% 1,458,706 5% ---------------------------------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (12,088,601) (7,935,857) (4,115,161) (37,583) Depreciation & Amortization (8,306,203) (5,965,547) (1,922,375) (418,281) ---------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (20,394,804) (13,901,404) (6,037,536) (455,864) ---------------------------------------------------------------------------- Gains (losses) on sales of int. in R.E. (79,800) - - (79,800) ---------------------------------------------------------------------------- Income before Minority Int. 6,621,974 5,316,932 382,000 923,042 ---------------------------------------------------------------------------- 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 $ 6,621,974 $ 5,316,932 80% $ 382,000 6% $ 923,042 14% ----------------------------------------------------------------------------
SAME STORE COMPARISON
Q2 04 (3 MONTHS ENDED 6/30/04) ---------------------------------------------------------------------------- COMBINED ENCLOSED POWER STRIP TOTAL MALL CENTER CENTER ---------------------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 15,894,549 $ 7,816,949 $ 6,717,821 $ 1,359,779 Straight-Lining of Base Rents 148,945 37,395 113,520 (1,970) Percentage Rents (32,258) (60,226) 27,968 - Expense Reimbursables 4,550,266 2,865,493 1,362,911 321,862 Lease Termination - - - - Other Real Estate Revenues 446,964 409,134 34,495 3,335 ---------------------------------------------------------------------------- TOTAL REVENUES 21,008,465 11,068,744 53% 8,256,715 39% 1,683,006 8% ---------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 4,045,426 2,889,161 883,391 272,874 Real Estate Taxes 1,628,640 650,091 827,858 150,691 Minority Interest in Properties - - - - ---------------------------------------------------------------------------- Total Operating Expenses 5,674,065 3,539,251 62% 1,711,249 30% 423,565 7% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- NET OPERATING INCOME 15,334,400 7,529,493 49% 6,545,466 43% 1,259,441 8% ---------------------------------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (4,737,055) (2,974,663) (1,725,898) (36,494) Depreciation & Amortization (4,533,640) (2,288,654) (1,873,166) (371,820) ---------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (9,270,695) (5,263,317) (3,599,064) (408,314) ---------------------------------------------------------------------------- Gain (losses) on sales of int. in R.E - - - - ---------------------------------------------------------------------------- Income before Minority Int. 6,063,706 2,266,177 2,946,402 851,127 ---------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - - ---------------------------------------------------------------------------- NET INCOME $ 6,063,706 $ 2,266,177 37% $ 2,946,402 49% $ 851,127 14% ----------------------------------------------------------------------------
------------------------------------------------------------------------ % CHANGE % CHANGE % CHANGE % CHANGE ENCLOSED POWER STRIP TOTAL (1) MALL CENTER CENTER ------------------------------------------------------------------------ R.E. OPERATING REVENUES Base Rents 4.7% 6.8% 2.9% 1.8% Straight-Lining of Base Rents -39.9% -63.7% -21.0% -248.7% Percentage Rents -115.0% 141.8% -60.0% N/A Expense Reimbursables 9.8% 9.8% 12.2% 0.9% Lease Termination N/A N/A N/A N/A Other Real Estate Revenues 4.8% 2.0% 78.8% -45.5% ------------------------------------------------------------------------ TOTAL REVENUES 3.9% 4.6% 3.6% 1.1% ------------------------------------------------------------------------ R.E. OPERATING EXPENSES Operating and Maintenance 3.4% 3.1% 7.6% -6.0% Real Estate Taxes 1.9% -10.0% 12.9% 5.4% Minority Interest in Properties N/A N/A N/A N/A ------------------------------------------------------------------------ Total Operating Expenses 2.9% 0.4% 10.1% -2.2% ------------------------------------------------------------------------ ------------------------------------------------------------------------ NET OPERATING INCOME 4.3% 6.8% 2.0% 2.3% ------------------------------------------------------------------------ OTHER INCOME (EXP.) Interest Expense -27.4% 22.6% -57.5% -2.9% Depreciation & Amortization -8.7% -13.9% -2.6% -3.7% ------------------------------------------------------------------------ TOTAL OTHER INCOME (EXP.) -19.3% 3.5% -39.9% -3.6% ------------------------------------------------------------------------ Gain (losses) on sales of int. in R.E N/A N/A N/A N/A ------------------------------------------------------------------------ Income before Minority Int. 88.8% 15.1% 576.1% 5.4% ------------------------------------------------------------------------ Extraordinary item (Loss on early extinguishment of debt) ------------------------------------------------------------------------ NET INCOME 88.8% 15.1% 576.1% 5.4% ------------------------------------------------------------------------
Q2 03 (3 MONTHS ENDED 6/30/03) ---------------------------------------------------------------------------- COMBINED ENCLOSED POWER STRIP TOTAL MALL CENTER CENTER ---------------------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 15,182,508 $ 7,320,551 $ 6,525,930 $ 1,336,027 Straight-Lining of Base Rents 247,928 102,952 143,651 1,325 Percentage Rents 215,706 144,062 69,994 1,650 Expense Reimbursables 4,142,418 2,608,741 1,214,739 318,938 Lease Termination - - - - Other Real Estate Revenues 426,559 401,146 19,293 6,120 ---------------------------------------------------------------------------- TOTAL REVENUES 20,215,119 10,577,452 52% 7,973,607 39% 1,664,060 8% ---------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 3,913,834 2,802,875 820,795 290,164 Real Estate Taxes 1,598,374 722,072 733,276 143,026 Minority Interest in Properties - - - - ---------------------------------------------------------------------------- Total Operating Expenses 5,512,208 3,524,947 64% 1,554,071 28% 433,190 8% ---------------------------------------------------------------------------- NET OPERATING INCOME 14,702,911 7,052,505 48% 6,419,536 44% 1,230,870 8% ---------------------------------------------------------------------------- OTHER INCOME (EXP.) Interest Expense (6,525,679) (2,426,723) (4,061,373) (37,583) Depreciation & Amortization (4,965,924) (2,657,417) (1,922,375) (386,132) ---------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (11,491,603) (5,084,140) (5,983,748) (423,715) ---------------------------------------------------------------------------- Gain (losses) on sales of int. in R.E - - - - ---------------------------------------------------------------------------- Income before Minority Int. 3,211,308 1,968,365 435,788 807,155 ---------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - ---------------------------------------------------------------------------- NET INCOME $ 3,211,308 $ 1,968,365 61% $ 435,788 14% $ 807,155 25% ----------------------------------------------------------------------------
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Company'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. PAGE 10 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED]
FUNDS FROM OPERATIONS (1) Q2:6/30/04 % CHANGE Q2:6/30/03 ------------------- ----------------- ------------------ NET INCOME $ 11,391,743 -92.1% $ 144,637,741 Dividends on preferred shares (3,403,125) - ------------------- ------------------ NET INCOME ALLOCABLE TO COMMON SHAREHOLDERS $ 7,988,618 -94.5% $ 144,637,741 Minority Interest in Operating Partnership-continuing operations 1,052,624 27.8% 823,758 Minority Interest in Operating Partnership-discontinued operations 221,615 N/A 15,649,831 (Gain) losses on sales of interests in real estate - N/A (4,321,803) (Gain) losses on disposition of discontinued operations - N/A (150,200,805) Depreciation & Amortization: (2) Wholly owned and consolidated partnerships 23,602,734 240.6% 6,929,165 Unconsolidated partnerships and joint ventures 1,141,390 -13.9% 1,324,953 Discontinued operations - N/A - ------------------- ----------------- ------------------ FFO $ 34,006,981 129.1% $ 14,842,840 ------------------- ----------------- ------------------ Weighted Average Shares and O.P. Units Outstanding 39,545,664 112.4% 18,614,284 ------------------- ----------------- ------------------ NET INCOME PER SHARE (BASIC) $0.22 -97.4% $8.70 ------------------- ----------------- ------------------ FFO PER SHARE $0.86 7.8% $0.80 ------------------- ----------------- ------------------ FUNDS AVAILABLE FOR DISTRIBUTION FFO $ 34,006,981 129.1% $ 14,842,840 Adjustments: Straight-lining of base rents (1,218,075) 99.0% (612,136) Recurring capital expenditures (1,449,365) 90.3% (761,533) Tenant allowances (950,906) N/A (44,568) Amortization of debt premium (4,848,163) 333.7% (1,117,767) Amortization of above-and below- market lease intangibles 202,727 55.7% 130,174 ------------------- ----------------- ------------------ FAD $ 25,743,199 107.0% $ 12,437,010 ------------------- ----------------- ------------------ Weighted Average Shares and O.P. Units Outstanding 39,545,664 112.4% 18,614,284 ------------------- ----------------- ------------------ FAD PER SHARE $0.65 -2.6% $0.67 ------------------- ----------------- ------------------ PAYOUT RATIOS ------------------- ----------------- ------------------ DIVIDEND PER COMMON SHARE $0.54 5.9% $0.51 ------------------- ----------------- ------------------ ------------------- ----------------- ------------------ PAYOUT RATIO OF NET INCOME PER SHARE (BASIC) 240.1% 234.2% 5.9% ------------------- ----------------- ------------------ ------------------- ----------------- ------------------ PAYOUT RATIO OF FFO 62.8% -1.2% 64.0% ------------------- ----------------- ------------------ ------------------- ----------------- ------------------ PAYOUT RATIO OF FAD 83.0% 6.6% 76.3% ------------------- ----------------- ------------------
(1) Certain prior period amounts have been reclassified to conform with the current period's presentation. (2) Excludes depreciation of non-real estate assets and amortization of deferred financing costs. PAGE 11 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED]
KEY RATIOS ------------------------------------------------------------------------------------------------------------------------------------ Q2: 6/30/2004 Q2: 6/30/2003 COVERAGE RATIO (1) Interest Coverage Ratio (EBITDA/Interest Expense) 2.80 2.07 ------------------------------------------------------------------------------------------------------------------------------------ LEVERAGE RATIOS (1) Debt / Total Market Capitalization 51.4% 59.7% ------------------------------------------------------------------------------------------------------------------------------------ OPERATING RATIOS (1) NOI/Real Estate Revenues 62.5% 63.1% ------------------------------------------------------------------------------------------------------------------------------------ RETURN ON INVESTMENT RATIOS (1) Total FFO/Equity Market Capitalization, net of preferred shares 2.5% 2.6% FFO multiple (Closing share price / Annualized FFO per share for quarter) (2) 9.96 9.39 NOI/Total Market Capitalization at Period End 2.2% 2.3% NOI/Investment in Real Estate at Period End 2.6% 2.6% ------------------------------------------------------------------------------------------------------------------------------------ PAYOUT RATIOS FFO Payout Ratio (Dividend/FFO) per Share 62.8% 64.0% FAD Payout Ratio (Dividend/FAD) per Share 83.0% 76.3% ------------------------------------------------------------------------------------------------------------------------------------
(1) The calculation of these ratios includes wholly owned properties, PREIT's proportional share of joint venture properties and properties classified as held for sale. (2) Calculations based on closing stock price at the end of the quarter. PAGE 12 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] DEBT SCHEDULE OF WHOLLY OWNED PROPERTIES
PREIT's Total PREIT's PREIT's Ownership Investment Investment Accumulated Property Name Interest to Date to Date(1) Depreciation RETAIL PROPERTIES Beaver Valley Mall 100% $ 56,017,730 $ 56,017,730 $ 3,502,432 Bradley Square 100% 7,409,311 7,409,311 - Capital City (2) 100% 79,585,521 79,585,521 1,298,299 Chambersburg Mall (2)(3) 89% 36,914,205 36,914,205 635,781 Cherry Hill Mall (4)(5) 100% 203,720,555 203,076,650 5,799,014 Christiana Power I 100% 39,870,034 39,870,034 4,957,610 Creekview 100% 19,066,343 19,066,343 2,393,141 Crest Plaza Shopping Center 100% 16,597,520 16,597,520 1,498,775 Crossroads Mall 100% 32,734,075 32,734,075 698,798 Dartmouth Mall 100% 53,739,816 53,739,816 10,081,077 Echelon Mall 100% 16,561,595 16,561,595 1,380,284 Exton Square Mall (5) 100% 143,344,433 143,344,433 4,627,123 Festival at Exton 100% 18,983,896 18,983,896 2,352,972 Francis Scott Key Mall (3) 89% 66,982,440 66,982,440 1,333,200 Jacksonville Mall 100% 58,821,481 58,821,481 1,265,870 Logan Valley Mall (2)(3) 100% 81,823,079 81,823,079 1,540,437 Lycoming Mall (2)(3) 89% 56,147,519 56,147,519 1,008,743 Magnolia Mall 100% 57,433,716 57,433,716 8,241,641 Martinsburg Mall (3) 89% 17,948,870 17,948,870 - Moorestown Mall 100% 75,122,895 75,122,895 3,588,278 Mount Berry Square 100% 16,467,178 16,467,178 - New River Valley Mall (3) 89% 32,924,344 32,924,344 559,813 Nittany Mall (2)(3) 89% 45,559,814 45,559,814 735,309 North Hanover Mall (2)(3) 89% 27,577,203 27,577,203 511,232 Northeast Tower Center 100% 31,018,258 31,018,258 2,983,164 Northeast Tower Center-Home Depot 100% 13,578,891 13,578,891 1,425,784 Palmer Park Mall 100% 37,723,765 37,723,765 6,290,190 Patrick Henry Mall (3) 89% 98,617,652 98,617,652 1,560,255 Paxton Towne Centre 100% 53,454,145 53,454,145 5,168,328 Phillipsburg Mall (3) 89% 49,841,850 49,841,850 898,939 Plymouth Meeting Mall 100% 79,097,112 79,097,112 2,932,080 Prince Georges Plaza (5) 100% 89,158,299 89,158,299 11,615,130 Schuylkill Mall (2) 100% 11,503,729 11,503,729 - Shenango Valley Mall (2) 100% 8,013,937 8,013,937 - South Blanding Village 100% 9,502,950 9,502,950 3,293,171 South Mall (2)(3) 89% 30,892,596 30,892,596 588,493 The Commons at Magnolia 100% 9,888,963 9,888,963 1,154,533 The Gallery at Market East I 100% 48,305,302 48,305,302 1,494,492 The Gallery at Market East II 100% 28,003,086 28,003,086 137,221 Uniontown Mall (2)(3) 89% 28,825,979 28,825,979 564,459 Valley Mall 100% 82,958,674 82,958,674 1,926,471 Valley View Mall 100% 51,460,089 51,460,089 836,156 Viewmont Mall (2)(3) 89% 71,018,423 71,018,423 1,195,197 Washington Crown Center (2) 89% 46,863,710 46,863,710 1,273,871 West Manchester Mall (2)(3) 89% 34,989,753 34,989,753 - Willow Grove Park 100% 171,610,386 171,610,386 8,977,614 Wiregrass Mall (5) 100% 40,694,261 40,694,261 806,331 Wyoming Valley Mall (2)(3) 100% 87,366,805 87,366,805 1,429,593 Land held for development 100% 9,469,893 9,469,893 ------------------------------------------------------------------------------------------------------------------------------------ SUB-TOTAL RETAIL PROPERTIES $ 2,485,212,081 $ 2,484,568,176 $ 114,561,301 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIAL PROPERTIES ARA Services, Allentown, PA 100% $ 84,610 $ 84,610 $ 81,610 ARA Services, Pennsauken, NJ 100% 210,473 210,473 169,547 Interstate Container Corporation 100% 1,802,271 1,802,271 1,501,922 Sears Roebuck & Co. 100% 406,857 406,857 348,772 ------------------------------------------------------------------------------------------------------------------------------------ SUB-TOTAL INDUSTRIAL AND LAND PROPERTIES $ 2,504,211 $ 2,504,211 $ 2,101,851 ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR WHOLLY OWNED PROPERTIES $ 2,487,716,292 $ 2,487,072,387 $ 116,663,152 ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $ 277,311,385 $ 137,845,332 $ 32,847,127 ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ CORPORATE/LINE OF CREDIT ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR WHOLLY OWNED AND JV PROPERTIES $ 2,765,027,677 $ 2,624,917,719 $ 149,510,279 ------------------------------------------------------------------------------------------------------------------------------------
PREIT's PREIT's Share of PREIT's Share Depreciated O/S Mortgage Debt and PREIT's Share of Mortgage Property Name Costs Mortgage Debt Premuim of Mortgage Debt Premium RETAIL PROPERTIES Beaver Valley Mall $ 52,515,298 $ 47,096,874 $ 47,096,874 $ - Bradley Square 7,409,311 - - - Capital City (2) 78,287,222 59,607,679 53,029,035 6,578,644 Chambersburg Mall (2)(3) 36,278,424 20,639,832 18,894,922 1,744,910 Cherry Hill Mall (4)(5) 197,277,636 78,087,177 73,400,849 4,686,328 58,017,197 58,017,197 - Christiana Power I 34,912,424 - - - Creekview 16,673,202 - - - Crest Plaza Shopping Center 15,098,745 - - - Crossroads Mall 32,035,277 14,274,472 13,483,455 791,017 Dartmouth Mall 43,658,739 69,016,654 69,016,654 - Echelon Mall 15,181,311 - - - Exton Square Mall (5) 138,717,310 106,454,867 99,141,795 7,313,072 Festival at Exton 16,630,924 - - - Francis Scott Key Mall (3) 65,649,240 36,119,707 33,066,114 3,053,593 Jacksonville Mall 57,555,611 - - - Logan Valley Mall (2)(3) 80,282,642 58,823,524 53,850,528 4,972,996 Lycoming Mall (2)(3) 55,138,776 36,119,708 33,066,114 3,053,594 Magnolia Mall 49,192,075 20,350,776 20,350,776 - Martinsburg Mall (3) 17,948,870 18,059,853 16,533,057 1,526,796 Moorestown Mall 71,534,617 63,265,790 63,265,790 - Mount Berry Square 16,467,178 - - - New River Valley Mall (3) 32,364,531 17,543,858 16,060,684 1,483,174 Nittany Mall (2)(3) 44,824,505 30,959,749 28,342,384 2,617,365 North Hanover Mall (2)(3) 27,065,971 20,639,832 18,894,922 1,744,910 Northeast Tower Center 28,035,094 - - - Northeast Tower Center-Home Depot 12,153,107 12,500,000 12,500,000 - Palmer Park Mall 31,433,575 17,996,533 17,996,533 - Patrick Henry Mall (3) 97,057,397 52,115,579 47,709,679 4,405,900 Paxton Towne Centre 48,285,817 - - - Phillipsburg Mall (3) 48,942,911 30,959,750 28,342,384 2,617,366 Plymouth Meeting Mall 76,165,032 - - - Prince Georges Plaza (5) 77,543,169 43,347,420 41,582,738 1,764,682 Schuylkill Mall (2) 11,503,729 17,738,995 17,738,995 - Shenango Valley Mall (2) 8,013,937 - - - South Blanding Village 6,209,779 - - - South Mall (2)(3) 30,304,103 15,479,875 14,171,192 1,308,683 The Commons at Magnolia 8,734,430 - - - The Gallery at Market East I 46,810,810 - - - The Gallery at Market East II 27,865,865 - - - Uniontown Mall (2)(3) 28,261,520 24,767,799 22,673,907 2,093,892 Valley Mall 81,032,203 - - - Valley View Mall 50,623,933 37,638,136 37,000,000 638,136 Viewmont Mall (2)(3) 69,823,226 30,959,750 28,342,384 2,617,366 Washington Crown Center (2) 45,589,839 - - - West Manchester Mall (2)(3) 34,989,753 27,863,775 25,508,145 2,355,630 Willow Grove Park 162,632,772 112,284,720 108,850,326 3,434,394 Wiregrass Mall (5) 39,887,930 30,000,000 30,000,000 - Wyoming Valley Mall (2)(3) 85,937,212 58,823,524 53,850,529 4,972,995 Land held for development 9,469,893 - - - ------------------------------------------------------------------------------------------------------------------------------------ SUB-TOTAL RETAIL PROPERTIES $2,370,006,875 $ 1,267,553,405 $ 1,201,777,962 $ 65,775,443 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIAL PROPERTIES ARA Services, Allentown, PA $ 3,000 $ - $ - $ - ARA Services, Pennsauken, NJ 40,926 - - - Interstate Container Corporation 300,349 - - - Sears Roebuck & Co. 58,085 - - - ------------------------------------------------------------------------------------------------------------------------------------ SUB-TOTAL INDUSTRIAL AND LAND PROPERTIES $ 402,360 $ - $ - $ - ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR WHOLLY OWNED PROPERTIES $2,370,409,235 $ 1,267,553,405 $ 1,201,777,962 $ 65,775,443 ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $ 104,998,205 $ 108,594,598 $ 108,594,598 $ - ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ CORPORATE /LINE OF CREDIT $ 219,000,000 $ 219,000,000 $ - ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR WHOLLY OWNED AND JV PROPERTIES $2,475,407,440 $ 1,595,148,003 $ 1,529,372,560 $ 65,775,443 ------------------------------------------------------------------------------------------------------------------------------------
Current Morthgage Annual Mortgage Interest Mortgage Debt Balance at Date of Property Name Rate Service Maturity Maturity Notes RETAIL PROPERTIES Beaver Valley Mall 7.36% $ 3,972,402 $ 42,265,601 2012 Bradley Square 0.00% Capital City (2) 7.61% 4,602,529 47,215,150 2012 Chambersburg Mall (2)(3) 7.43% 1,762,666 17,199,298 2008 Cherry Hill Mall (4)(5) 10.60% 9,132,792 70,237,549 2005 5.00% 3,889,582 58,148,407 2005 Christiana Power I 0.00% - - Creekview 0.00% - - Crest Plaza Shopping Center 0.00% - - Crossroads Mall 7.39% 1,191,103 12,646,534 2008 Dartmouth Mall 4.95% 4,483,668 57,594,279 2013 Echelon Mall 0.00% Exton Square Mall (5) 6.95% 8,102,242 93,034,212 2008 Festival at Exton 0.00% - - Francis Scott Key Mall (3) 7.43% 3,084,665 30,098,771 2008 Jacksonville Mall 0.00% Logan Valley Mall (2)(3) 7.43% 5,023,597 49,017,998 2008 Lycoming Mall (2)(3) 7.43% 3,084,664 30,098,771 2008 Magnolia Mall 8.20% 2,597,726 17,782,882 2007 Martinsburg Mall (3) 7.43% 1,542,332 15,049,385 2008 Moorestown Mall 4.95% 4,115,367 52,863,321 2013 Mount Berry Square 0.00% New River Valley Mall (3) 7.43% 1,498,266 14,619,403 2008 Nittany Mall (2)(3) 7.43% 2,643,998 25,798,946 2008 North Hanover Mall (2)(3) 7.43% 1,762,666 17,199,298 2008 Northeast Tower Center 0.00% - - Northeast Tower Center-Home Depot 7.40% 925,000 12,500,000 2005 Palmer Park Mall 6.77% 1,661,220 15,674,394 2009 Patrick Henry Mall (3) 7.43% 4,450,730 43,428,226 2008 Paxton Towne Centre 0.00% - - - Phillipsburg Mall (3) 7.43% 2,643,998 25,798,946 2008 Plymouth Meeting Mall 0.00% - - - Prince Georges Plaza (5) 8.70% 4,134,937 39,986,536 2007 Schuylkill Mall (2) 7.25% 3,315,300 7,442,925 2008 Shenango Valley Mall (2) 0.00% - - - South Blanding Village 0.00% - - - South Mall (2)(3) 7.43% 1,321,999 12,899,473 2008 The Commons at Magnolia 0.00% - - - The Gallery at Market East I 0.00% - - - The Gallery at Market East II 0.00% - - - Uniontown Mall (2)(3) 7.43% 2,115,199 20,639,157 2008 Valley Mall 0.00% - - - Valley View Mall 6.15% 2,275,500 34,094,549 2009 Viewmont Mall (2)(3) 7.43% 2,643,998 25,798,946 2008 Washington Crown Center (2) 0.00% - - - West Manchester Mall (2)(3) 7.43% 2,379,598 23,219,052 2008 Willow Grove Park 8.39% 10,046,933 107,307,726 2006 Wiregrass Mall (5) 3.12% 967,200 30,000,000 2005 Wyoming Valley Mall (2)(3) 7.43% 5,023,597 49,017,998 2008 Land held for development 0.00% - - - ------------------------------------------------------------------------------------------------------------------------------------ SUB-TOTAL RETAIL PROPERTIES 7.18% $ 106,395,475 $ 1,098,677,734 ------------------------------------------------------------------------------------------------------------------------------------ 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 7.18% $ 106,395,475 $ 1,098,677,734 ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR PARTNERSHIPS AND JOINT VENTURES 7.47% $ 10,205,588 $ 93,753,089 ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ CORPORATE /LINE OF CREDIT ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR WHOLLY OWNED AND JV PROPERTIES 7.21% $ 116,601,063 $ 1,192,430,823 ------------------------------------------------------------------------------------------------------------------------------------
(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 the properties allocated portion of the REMIC provided by General Electric Capital Corporation. (4) 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. (5) Mortgage term does not include two 12 month extensions. PAGE 13 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] DEBT SCHEDULE OF PARTNERSHIPS AND JOINT VENTURES
------------------------------------------------------------------------------------------------------------------------------------ PREIT's PREIT's Share of O/S Ownership Total PREIT's PREIT's PREIT's Mortgage Debt Property Name Interest Investment Investment Accumulated Depreciated and Mortgage ------------- -------- to Date to Date (1) Depreciation Costs Debt Premuim RETAIL PROPERTIES Court at Oxford Valley 50% $ 55,612,576 $ 27,806,288 $ 4,345,628 $ 23,460,660 $ 21,538,635 Laurel Mall 40% 31,378,545 12,551,418 4,812,410 7,739,008 9,149,008 Lehigh Valley Mall 50% 30,410,756 15,205,378 9,567,445 5,637,933 23,379,942 Metroplex Shopping Center (Blue Route) 50% 84,722,732 42,361,366 3,937,755 38,423,611 31,973,977 Red Rose Commons 50% 23,878,898 11,939,449 1,442,475 10,496,974 13,741,693 Rio Mall 60% 8,219,542 4,931,725 2,482,355 2,449,370 - Springfield Park I&II 50% 13,291,878 6,645,939 638,108 6,007,831 1,819,888 Whitehall Mall 50% 29,796,458 14,898,229 5,620,951 9,277,278 6,991,455 ------------------------------------------------------------------------------------------------------------------------------------ SUB-TOTAL RETAIL PROPERTIES $ 277,311,385 $136,339,792 $ 32,847,127 $ 103,492,665 $ 108,594,598 ------------------------------------------------------------------------------------------------------------------------------------ CONSTRUCTION IN PROGRESS/DEVELOPMENT Pavilion at Market East 50% N/A $ 1,505,540 $ 1,505,540 ------------------------------------------------------------------------------------------------------------------------------------ SUB-TOTAL PROPERTIES UNDER DEVELOPMENT $ - $ 1,505,540 $ - $ 1,505,540 $ - ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $ 277,311,385 $137,845,332 $ 32,847,127 $ 104,998,205 $ 108,594,598 ------------------------------------------------------------------------------------------------------------------------------------ (1) Includes development and CIP costs.
------------------------------------------------------------------------------------------------------------------------------------ PREIT's PREIT's Share of Current Annual Mortgage Share of Mortgage Mortgages Mortgage Debt Balance at Date of Property Name Mortgage Debt Premium Interest Rate Debt Service Maturity Maturity Notes RETAIL PROPERTIES Court at Oxford Valley $ 21,538,635 $ - 8.02% $ 2,319,426 $ 15,966,965 2011 Laurel Mall 9,149,008 - 6.00% 661,904 7,819,521 2013 Lehigh Valley Mall 23,379,942 - 7.90% 2,479,260 21,750,440 2006 Metroplex Shopping Center (Blue Route) 31,973,977 - 7.25% 2,680,953 28,250,000 2011 Red Rose Commons 13,741,693 - 7.66% 1,220,048 12,425,422 2009 Rio Mall - - 0.00% - - Springfield Park I&II 1,819,888 - 7.79% 202,561 1,411,804 2010 Whitehall Mall 6,991,455 - 6.77% 641,436 6,128,937 2008 ------------------------------------------------------------------------------------------------------------------------------------ SUB-TOTAL RETAIL PROPERTIES $ 108,594,598 $ - 7.47% $10,205,588 $ 93,753,089 ------------------------------------------------------------------------------------------------------------------------------------ CONSTRUCTION IN PROGRESS/DEVELOPMENT Pavilion at Market East $ - $ - 0.00% ------------------------------------------------------------------------------------------------------------------------------------ SUB-TOTAL PROPERTIES UNDER DEVELOPMENT $ - $ - $ - $ - $ - ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $ 108,594,598 $ - 7.47% $10,205,588 $ 93,753,089 ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes development and CIP costs. PAGE 14 PENNSYLVANIA REIT [GRAPHIC OMITTED] [GRAPHIC OMITTED] QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) DEBT ANALYSIS
------------------------------------------------------------------------------------------------------------------------------------ OUTSTANDING DEBT (1) FIXED % OF TOTAL FLOATING % OF TOTAL % OF TOTAL RATE INDEBTEDNESS RATE INDEBTEDNESS TOTAL INDEBTEDNESS WHOLLY OWNED Mortgage Notes Payable $1,237,553,405 77.6% $ 30,000,000 1.9% $1,267,553,405 79.5% Revolving Line of Credit - 0.0% - 0.0% - 0.0% Acquisition Term Loan & Unsecured Line of Credit 0.0% 0.0% - 0.0% --------------- ------------ 1,267,553,405 79.5% SUB-TOTAL 1,237,553,405 77.6% 30,000,000 1.9% PARTNERSHIPS AND JOINT VENTURES (AT PREIT'S SHARE) Mortgage Notes Payable 108,594,598 6.8% - 0.0% 108,594,598 6.8% Revolving Line of Credit - 0.0% - 0.0% - 0.0% Construction loans payable - 0.0% - 0.0% - 0.0% --------------- ------------ ------------ SUB-TOTAL 108,594,598 6.8% - 0.0% 108,594,598 6.8% CORPORATE Revolving Line of Credit 0.0% 219,000,000 13.7% 219,000,000 13.7% ------------ ------------ SUB-TOTAL 0.0% 219,000,000 13.7% 219,000,000 13.7% TOTAL OUTSTANDING DEBT 1,346,148,003 249,000,000 1,595,148,003 SWAP - - - -------------- ------------ TOTAL DEBT AFTER HEDGE $1,346,148,003 84.4% $249,000,000 15.6% $1,595,148,003 100.0% ------------------------------------------------------------------------------------------------------------------------------------ (1) Includes mark to market of debt. [Chart Omitted]
-------------------------------------------------------------------------------- WEIGHTED AVERAGE INTEREST RATES WEIGHTED AVERAGE PRINCIPAL BALANCE INTEREST RATE Fixed Rate Debt $ 1,280,372,560 7.30% Mortgage Debt Premium 65,775,443 N/A Floating Rate Debt 249,000,000 3.10% -------------------------------------- TOTAL $ 1,595,148,003 6.62% --------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------- INTEREST RATE HEDGING INSTRUMENTS INTEREST EXPIRATION FIXED RATE IN FLOATING RATE NOMINAL AMOUNT RATE LIMIT DATE NOMINAL AMOUNT AGREEMENT IN AGREEMENT EXPIRATION DATE ---------------------------------------------- ----------------------------------------------------------------- CAP None SWAP None --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- MORTGAGE/CONSTRUCTION MATURITY SCHEDULE (1) MORTGAGE BALANCE AT % OF DEBT CUMULATIVE % OF YEAR MATURITY EXPIRING DEBT EXPIRING -------------------------------------------------------------------------------- 2004 $ - 0.0% 0.0% 2005 170,885,956 14.3% 14.3% 2006 129,058,166 10.8% 25.2% 2007 57,769,418 4.8% 30.0% 2008 519,136,276 43.5% 73.5% 2009 62,194,365 5.2% 78.8% 2010 1,411,804 0.1% 78.9% 2011 44,216,965 3.7% 82.6% 2012 89,480,751 7.5% 90.1% 2013 118,277,121 9.9% 100.0% Thereafter - 0.0% 100.0% ------------------------------------ $ 1,192,430,823 100.0% ------------------------------------------------------------------------- (1) The average period to mortgage maturity is 4.8 years.
------------------------------------------------------------------------------------------------------------------------------------ AVERAGE DEBT BALANCE MORTGAGE DEBT (1) & LINE OF CREDIT CONSTRUCTION LOANS & BANK LOANS REMIC TOTAL ------------------------------------------------------------------------- BEGINNING BALANCE 3/31/2004 $ 902,059,700 $ 182,000,000 $ 484,254,075 $ 1,568,313,866 Acquisitions- The Gallery at Market East II 5/18/2004 25,000,000 25,000,000 Working Capital 6/15/2004 12,000,000 12,000,000 Debt Amortization (2) 6/30/2004 (5,787,812) (4,377,960) (10,165,772) ------------------------------------------------------------------------ ENDING BALANCE 6/30/2004 $ 896,271,888 $ 219,000,000 $ 479,876,115 $ 1,595,148,003 WEIGHTED AVERAGE BALANCE $ 902,059,700 $ 195,791,209 $ 484,254,075 $ 1,582,104,984 ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes mark to market of debt. (2) Includes the amortization of debt premium. PAGE 15 PENNSYLVANIA REIT [GRAPHIC OMITTED] [GRAPHIC OMITTED] QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) DEBT RATIOS(1)
6/30/2004 6/30/2003 -------------- -------------- 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 $ 1,610,383,019 $ 869,295,566 Gross Asset Value $ 3,105,246,953 $ 1,451,596,076 RATIO 51.86% 59.89% ------------------------------------------------------------------------------------------------------------------------------------ EBITDA TO INTEREST EXPENSE Ratio of EBITDA(4) to Interest Expense(5) greater than or equal to 1.90 to 1.00. EBITDA $ 186,087,656 $ 100,609,636 Interest Expense $ 85,026,790 $ 47,479,403 RATIO 2.19 2.12 ------------------------------------------------------------------------------------------------------------------------------------ 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 $ 184,384,301 $ 98,839,001 Fixed Charges $ 109,871,886 $ 54,788,643 RATIO 1.68 1.80 ------------------------------------------------------------------------------------------------------------------------------------ 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 $ 1,310,372,560 Gross Asset Value $ 3,105,246,953 RATIO 42.20% 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 and the non-core properties) 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 Property 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 plus (xi) adjusted NOI for all non-core properties for the previous rolling four quarters capitalized at 11.00%. (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 16 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] PORTFOLIO SUMMARY--RETAIL (Sorted by State)
RETAIL PROPERTIES (1) CITY STATE PROPERTY SUBTYPE MANAGEMENT STATUS PROPERTY 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 Francis Scott Key Mall (2) Frederick MD Enclosed Mall PREIT New Valley Mall Hagerstown MD Enclosed Mall PREIT New Prince Georges Plaza Hyattsville MD Enclosed Mall PREIT Redevelopment Dartmouth Mall Dartmouth MA Enclosed Mall PREIT Existing 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 Grande Mall (3) Rio Grande NJ Strip Center Third Party Existing Echelon Mall Voorhees NJ Enclosed Mall PREIT New Jacksonville Mall Jacksonville NC 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 Chambersburg Mall (2) Chambersburg PA Enclosed Mall PREIT New Palmer Park Mall Easton PA Enclosed Mall PREIT Existing ------------------------------------------------------------------------------------------------------------------------------------
OWNERSHIP DATE YEAR BUILT/ YEARS SINCE RETAIL PROPERTIES (1) INTEREST ACQUIRED LAST RENOVATED RENOVATION --------------------- --------------- ------------- --------------- ----------- Wiregrass Commons 100% 2003 1986/1999 5 Christiana Power Center I 100% 1998 1998 6 South Blanding Village 100% 1988/1990 1986 18 Francis Scott Key Mall (2) 89% 2003 1978/1991 13 Valley Mall 100% 2003 1974/1999 5 Prince Georges Plaza 100% 1998 1959/1990 14 Dartmouth Mall 100% 1997 1971/2000 4 Cherry Hill Mall 100% 2003 1961/1990 14 Moorestown Mall 100% 2003 1963/2000 4 Phillipsburg Mall 89% 2003 1989/2003 1 Rio Grande Mall (3) 60% 1973 1973/1999 5 Echelon Mall 100% 2003 1970/1998 6 Jacksonville Mall 100% 2003 1981/1998 6 Crest Plaza Shopping Center 100% 1964 1959/2003 1 Lehigh Valley Mall 50% 1973 1977/1996 8 South Mall (2) 89% 2003 1975/1992 12 Whitehall Mall 50% 1964 1964/1998 6 Logan Valley Mall (2) 100% 2003 1960/1997 7 Capital City Mall (2) 100% 2003 1974/1998 6 Chambersburg Mall (2) 89% 2003 1982 22 Palmer Park Mall 100% 1972/2003 1972/1998 6 ------------------------------------------------------------------------------------------------------------------------------------
OWNED GLA OWNED GLA TOTAL RETAIL PROPERTIES (1) (ANCHORS) (NON-ANCHORS) OWNED GLA --------------------- ---------- ------------- --------- Wiregrass Commons - 229,712 229,712 Christiana Power Center I 190,814 111,595 302,409 South Blanding Village 73,921 32,736 106,657 Francis Scott Key Mall (2) 291,620 277,869 569,489 Valley Mall 294,348 355,892 650,240 Prince Georges Plaza 404,462 348,873 753,335 Dartmouth Mall 208,460 315,129 523,589 Cherry Hill Mall - 525,310 525,310 Moorestown Mall 408,356 324,686 733,042 Phillipsburg Mall 326,170 246,091 572,261 Rio Grande Mall (3) 136,066 29,517 165,583 Echelon Mall 310,840 433,275 744,115 Jacksonville Mall 242,115 232,340 474,455 Crest Plaza Shopping Center 45,000 59,231 104,231 Lehigh Valley Mall 212,000 467,030 679,030 South Mall (2) 188,858 214,877 403,735 Whitehall Mall 294,635 239,086 533,721 Logan Valley Mall (2) 454,387 327,247 781,634 Capital City Mall (2) 204,301 284,359 488,660 Chambersburg Mall (2) 241,690 212,918 454,608 Palmer Park Mall 314,235 131,994 446,229 ------------------------------------------------------------------------------------------------------------------------------------
RETAIL PROPERTIES (1) SPACE NOT OWNED (NAME/GLA) TOTAL PROPERTY GLA --------------------- --------------------------- ------------------- Wiregrass Commons Dillard's 403,163 632,875 JC Penney McRaes Parisian Christiana Power Center I - 302,409 South Blanding Village - 106,657 Francis Scott Key Mall (2) Hecht's 139,333 708,822 Valley Mall Sears Hecht's 243,400 893,640 Prince Georges Plaza - 753,335 Dartmouth Mall Filene's 93,123 616,712 Cherry Hill Mall JC Penney 740,770 1,266,080 Macy's Strawbridge's Moorestown Mall Lord & Taylor 321,200 1,054,242 Strawbridge's Phillipsburg Mall - 572,261 Rio Grande Mall (3) - 165,583 Echelon Mall Strawbridge's 396,783 1,140,898 Boscov's Jacksonville Mall - 474,455 Crest Plaza Shopping Center Target 143,130 247,361 Lehigh Valley Mall JC Penney 371,986 1,051,016 Strawbridge's Firestone South Mall (2) - 403,735 Whitehall Mall - 533,721 Logan Valley Mall (2) - 781,634 Capital City Mall (2) Hecht's 120,000 608,660 Chambersburg Mall (2) - 454,608 Palmer Park Mall - 446,229 ------------------------------------------------------------------------------------------------------------------------------------
RETAIL PROPERTIES (1) MAJORS / ANCHORS LEASE 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 1/31/19 Dick's Sporting Gds 11/30/13 South Blanding Village Staples 9/30/08 Food Lion 7/31/08 Francis Scott Key Mall (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 7/31/06 Hecht 10/31/08 Dartmouth Mall JC Penney 7/31/09 Sears 4/12/06 Filene's N/A 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 Grande Mall (3) K-Mart 7/31/18 Staples 10/31/04 Echelon Mall Boscov's N/A Strawbridge's N/A Jacksonville Mall Belks 8/21/11 JC Penney 8/31/05 Sears 8/4/11 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 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 ------------------------------------------------------------------------------------------------------------------------------------
PAGE 17A PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] PORTFOLIO SUMMARY-RETAIL (Sorted by State)
PROPERTY RETAIL PROPERTIES (1) CITY STATE SUBTYPE MANAGEMENT STATUS PROPERTY STATUS --------------------- ---- ----- ------- ----------------- --------------- Exton Square Mall Exton PA Enclosed Mall PREIT New Festival at Exton Exton PA Strip Center PREIT Existing North Hanover Mall (2) Hanover PA Enclosed Mall PREIT New Paxton Towne Centre Harrisburg PA Power Center PREIT Existing Laurel Mall Hazleton PA Enclosed Mall Third Party Existing 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 Existing Lycoming Mall (2) Pennsdale PA Enclosed Mall PREIT New Northeast Tower Center Philadelphia PA Power Center PREIT Existing The Gallery at Market East I (4) Philadelphia PA Enclosed Mall PREIT New The Gallery at Market East II (4) Philadelphia PA Enclosed Mall PREIT New Plymouth Meeting Mall Plymouth Meeting PA Enclosed Mall PREIT New Metroplex Shopping Center Plymouth Meeting 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 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 ------------------------------------------------------------------------------------------------------------------------------------
YEAR BUILT/ YEARS SINCE RETAIL PROPERTIES (1) OWNERSHIP INTEREST DATE ACQUIRED LAST RENOVATED RENOVATION --------------------- ------------------ ------------- -------------- ------------ Exton Square Mall 100% 2003 1973/2000 4 Festival at Exton 100% 1998 1991 13 North Hanover Mall (2) 89% 2003 1967/1999 5 Paxton Towne Centre 100% 1999 2001 3 Laurel Mall 40% 1988 1973/1995 9 Red Rose Commons 50% 1998 1998 6 The Court at Oxford Valley 50% 1997 1996 8 Beaver Valley Mall 100% 2002 1970/1991 13 Lycoming Mall (2) 89% 2003 1978/1990 14 Northeast Tower Center 100% 1998/1999 1997/1998 6 The Gallery at Market East I (4) 100% 2003 1977/1990 13 The Gallery at Market East II (4) 100% 2004 1984 20 Plymouth Meeting Mall 100% 2003 1966/1999 5 Metroplex Shopping Center 50% 1999 2001 3 Viewmont Mall (2) 89% 2003 1968/1996 8 Springfield Park I & II 50% 1997/1998 1997/1998 6 Nittany Mall (2) 89% 2003 1968/1990 14 Uniontown Mall (2) 89% 2003 1972/1990 14 Creekview Shopping Center 100% 1999 2001 3 --------------------------------------------------------------------------------------------------------------------
RETAIL PROPERTIES (1) OWNED GLA (ANCHORS) OWNED GLA (NON-ANCHORS) TOTAL OWNED GLA --------------------- ------------------- ----------------------- ----------------- Exton Square Mall 440,301 369,483 809,784 Festival at Exton 60,425 84,578 145,003 North Hanover Mall (2) 288,177 161,009 449,186 Paxton Towne Centre 151,627 292,856 444,483 Laurel Mall 350,323 208,479 558,802 Red Rose Commons - 263,452 263,452 The Court at Oxford Valley 176,831 280,032 456,863 Beaver Valley Mall 511,267 446,709 957,976 Lycoming Mall (2) 321,441 340,035 661,476 Northeast Tower Center 256,021 182,521 438,542 The Gallery at Market East I (4) 193,550 193,550 The Gallery at Market East II (4) 127,271 207,129 334,400 Plymouth Meeting Mall 345,000 413,585 758,585 Metroplex Shopping Center 67,185 410,276 477,461 Viewmont Mall (2) 386,262 237,404 623,666 Springfield Park I & II 83,539 43,292 126,831 Nittany Mall (2) 221,462 215,617 437,079 Uniontown Mall (2) 421,378 277,042 698,420 Creekview Shopping Center - 136,086 136,086 -----------------------------------------------------------------------------------------------------------------------
RETAIL PROPERTIES (1) SPACE NOT OWNED (NAME/GLA) TOTAL PROPERTY GLA ---------------------- --------------------------------------- ----------------------------- Exton Square Mall Strawbridge's K-Mart 277,468 1,087,252 Festival at Exton - 145,003 North Hanover Mall (2) - 449,186 Paxton Towne Centre Target Costco 273,058 717,541 Laurel Mall - 558,802 Red Rose Commons Weis Markets 199,590 463,042 Home Depot The Court at Oxford Valley Home Depot BJ's 247,623 704,486 Beaver Valley Mall Kaufmann's 204,770 1,162,746 Lycoming Mall (2) Kaufmann's 120,000 781,476 Northeast Tower Center Raymour & Flanigan 38,678 477,220 The Gallery at Market East I (4) - 193,550 The Gallery at Market East II (4) - 334,400 Plymouth Meeting Mall Strawbridge's 214,635 973,220 Metroplex Shopping Center Target Lowe's 300,729 778,190 Viewmont Mall (2) Kaufmann's 120,000 743,666 Springfield Park I & II Target 145,669 272,500 Nittany Mall (2) Kaufmann's 95,000 532,079 Uniontown Mall (2) - 698,420 Creekview Shopping Center Target Lowe's 288,916 425,002 -----------------------------------------------------------------------------------------------------------------------
RETAIL PROPERTIES (1) MAJORS / ANCHORS LEASE EXPIRATION --------------------- ---------------- ---------------- 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 2/28/05 Clemen's 10/31/11 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 Centre Target N/A Kohl's 1/25/21 Weis Markets 11/30/20 Costco N/A Laurel Mall Boscov's 4/30/08 K-Mart 8/31/19 JC Penney 10/31/09 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 I (4) K-Mart N/A Strawbridge's N/A The Gallery at Market East II (4) Burlington Coat Factory 28/02/2032 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 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 -------------------------------------------------------------------------------------------------
PAGE 17B PENNSYLVASNIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) PORTFOLIO SUMMARY-RETAIL (Sorted by State) [GRAPHIC OMITTED] [GRAPHIC OMITTED]
PROPERTY RETAIL PROPERTIES (1) CITY STATE SUBTYPE MANAGEMENT STATUS PROPERTY STATUS --------------------- ---- ----- ------- ----------------- --------------- 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 Magnolia Mall Florence SC Enclosed Mall PREIT Existing The Commons at Magnolia Florence SC Strip Center PREIT Existing New River Valley Mall Christiansburg VA Enclosed Mall PREIT New Patrick Henry Mall Newport News VA Enclosed Mall PREIT New Crossroads Mall Beckley WV Enclosed Mall PREIT New Valley View Mall La Crosse WI Enclosed Mall PREIT New ------------------------------------------------------------------------------------------------------------------------------------ PROPERTIES HELD FOR SALE Mount Berry Square (3) Rome GA Enclosed Mall PREIT New Schuylkill Mall (2) Frackville PA Enclosed Mall PREIT New Shenango Valley Mall (2)(3) Hermitage PA Enclosed Mall PREIT New West Manchester Mall (2)(3) York PA Enclosed Mall PREIT New Bradley Square Mall (3) Cleveland TN Enclosed Mall PREIT New Martinsburg Mall (3) Martinsburg WV Enclosed Mall PREIT New TOTAL ASSETS HELD FOR SALE TOTAL CONTINUING PROPERTIES ------------------------------------------------------------------------------------------------------------------------------------ TOTAL WHOLLY OWNED ------------------------------------------------------------------------------------------------------------------------------------ TOTAL JOINT VENTURE ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR WHOLLY OWNED AND JOINT VENTURE ------------------------------------------------------------------------------------------------------------------------------------ AVERAGE FOR WHOLLY OWNED AND JOINT VENTURE ------------------------------------------------------------------------------------------------------------------------------------
YEAR BUILT/ YEARS SINCE RETAIL PROPERTIES (1) OWNERSHIP INTEREST DATE ACQUIRED LAST RENOVATED RENOVATION --------------------- ------------------ ------------- -------------- ----------- Washington Crown Center (2) 89% 2003 1969/1999 5 Wyoming Valley Mall (2) 100% 2003 1974/1995 9 Willow Grove Park 100% 2000/2003 1982/2001 3 Magnolia Mall 100% 1997 1979/1992 12 The Commons at Magnolia 100% 1999 1991/2002 2 New River Valley Mall 89% 2003 1988 16 Patrick Henry Mall 89% 2003 1988/1999 5 Crossroads Mall 100% 2003 1981 23 Valley View Mall 100% 2003 1980/2001 3 ------------------------------------------------------------------------------------------------------------------------------------ PROPERTIES HELD FOR SALE Mount Berry Square (3) 100% 2003 1991 13 Schuylkill Mall (2) 100% 2003 1980/1991 13 Shenango Valley Mall (2)(3) 100% 2003 1967/1997 7 West Manchester Mall (2)(3) 89% 2003 1981/1995 9 Bradley Square Mall (3) 100% 2003 1991/2000 4 Martinsburg Mall (3) 89% 2003 1991/1998 6 TOTAL ASSETS HELD FOR SALE TOTAL CONTINUING PROPERTIES ------------------------------------------------------------------------------------------------------------------------------------ TOTAL WHOLLY OWNED ------------------------------------------------------------------------------------------------------------------------------------ TOTAL JOINT VENTURE ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR WHOLLY OWNED AND JOINT VENTURE ------------------------------------------------------------------------------------------------------------------------------------ AVERAGE FOR WHOLLY OWNED AND JOINT VENTURE 8.63 ------------------------------------------------------------------------------------------------------------------------------------
OWNED GLA OWNED GLA TOTAL RETAIL PROPERTIES (1) (ANCHORS) (NON-ANCHORS) OWNED GLA --------------------- --------- ------------- --------- Washington Crown Center (2) 245,401 288,171 533,572 Wyoming Valley Mall (2) 592,110 318,836 910,946 Willow Grove Park 225,000 339,062 564,062 Magnolia Mall 343,118 219,578 562,696 The Commons at Magnolia 51,574 52,915 104,489 New River Valley Mall 240,306 187,849 428,155 Patrick Henry Mall 267,175 233,191 500,366 Crossroads Mall 256,248 193,836 450,084 Valley View Mall 96,357 238,075 334,432 ------------------------------------------------------------------------------------------------------------------------------------ PROPERTIES HELD FOR SALE Mount Berry Square (3) 269,257 208,757 478,014 Schuylkill Mall (2) 346,990 318,728 665,718 Shenango Valley Mall (2)(3) 400,099 108,516 508,615 West Manchester Mall (2)(3) 285,515 296,641 582,156 Bradley Square Mall (3) 240,421 144,335 384,756 Martinsburg Mall (3) 387,303 165,194 552,497 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS HELD FOR SALE 1,929,585 1,242,171 3,171,756 TOTAL CONTINUING PROPERTIES 11,368,077 12,234,415 23,602,492 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL WHOLLY OWNED 11,977,083 11,535,422 23,512,505 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL JOINT VENTURE 1,320,579 1,941,164 3,261,743 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR WHOLLY OWNED AND JOINT VENTURE 13,297,662 13,476,586 26,774,248 ------------------------------------------------------------------------------------------------------------------------------------ AVERAGE FOR WHOLLY OWNED AND JOINT VENTURE ------------------------------------------------------------------------------------------------------------------------------------
SPACE NOT OWNED TOTAL PROPERTY RETAIL PROPERTIES (1) (NAME/GLA) GLA --------------------- ---------- --- Washington Crown Center (2) Kaufmann's 140,095 673,667 Wyoming Valley Mall (2) - 910,946 Willow Grove Park Sears 641,861 1,205,923 Bloomingdale's Strawbridge Magnolia Mall - 562,696 The Commons at Magnolia Target 126,200 230,689 New River Valley Mall - 428,155 Patrick Henry Mall Hecht's 140,000 640,366 Crossroads Mall - 450,084 Valley View Mall Herberges 254,596 589,028 Marshall Fields Sears ------------------------------------------------------------------------------------------------------------------------------------ PROPERTIES HELD FOR SALE Mount Berry Square (3) - 478,014 Schuylkill Mall (2) Bon-Ton 60,916 726,634 Shenango Valley Mall (2)(3) - 508,615 West Manchester Mall (2)(3) Hecht's 119,768 701,924 Bradley Square Mall (3) - 384,756 Martinsburg Mall (3) - 552,497 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS HELD FOR SALE - 180,684 3,352,440 TOTAL CONTINUING PROPERTIES - 6,801,776 30,404,268 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL WHOLLY OWNED 5,716,863 29,229,368 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL JOINT VENTURE 1,265,597 4,527,340 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR WHOLLY OWNED AND JOINT VENTURE 6,982,460 33,756,708 ------------------------------------------------------------------------------------------------------------------------------------ AVERAGE FOR WHOLLY OWNED AND JOINT VENTURE ------------------------------------------------------------------------------------------------------------------------------------
RETAIL PROPERTIES (1) MAJORS / ANCHORS LEASE EXPIRATION --------------------- ---------------- ---------------- 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 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 New River Valley Mall Belks 4/19/08 JC Penney 3/31/08 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 1/31/99 Crossroads Mall Sears 11/30/08 JC Penney 3/31/06 Belk 12/31/06 Valley View Mall JC Penney 7/31/10 Herberges N/A Marshall Fields N/A Sears N/A ------------------------------------------------------------------------------------------------------------------ PROPERTIES HELD FOR SALE Mount Berry Square (3) Belks 2/12/11 JC Penney 2/28/06 Profitts 1/31/12 Sears 2/8/11 Schuylkill Mall (2) K-Mart 10/31/05 Sears 10/31/05 Bon-Ton N/A Black Diamond Antiques 12/31/04 Shenango Valley Mall (2)(3) Kaufmann's 9/30/06 JC Penney 1/31/09 Sears 11/30/05 West Manchester Mall (2)(3) Bon-Ton 2/28/07 Hecht's N/A Value City 10/31/11 Wal-Mart 10/31/14 Bradley Square Mall (3) Sears 10/23/05 Proffitt's 1/31/06 K-Mart 1/31/12 JC Penney 2/28/06 Martinsburg Mall (3) Bon-Ton 1/31/12 JC Penney 8/31/11 Sears 9/8/11 Wal-Mart 6/28/11 TOTAL ASSETS HELD FOR SALE TOTAL CONTINUING PROPERTIES ------------------------------------------------------------------------------------------------------------------ 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 JOINT VENTURE PROPERTIES (4) --------------------------------------------------------------------------------------- ENCLOSED MALL PREIT MANAGED EXISTING WHOLLY OWNED 40 47 19 46 --------------------------------------------------------------------------------------- POWER CENTER THIRD PARTY MANAGED NEW JOINT VENTURE 8 7 34 8 --------------------------------------------------------------------------------------- STRIP CENTER REDEVELOPMENT 6 1 --------------------------------------------------------------------------------------- 54 54 54 54 ---------------------------------------------------------------------------------------
SUMMARY OF TOTAL OWNED GLA FOR WHOLLY OWNED AND JOINT VENTURE PROPERTIES ------------------------------------------------------------------------------------------------------------------------------------ ENCLOSED MALL PREIT MANAGED EXISTING WHOLLY OWNED TOP 5 ASSETS AS A PERCENTAGE OF 22,968,437 23,639,336 7,429,902 23,512,505 15.8% ------------------------------------------------------------------------------------------------------------------------------------ POWER CENTER THIRD PARTY MANAGED NEW JOINT VENTURE TOP ASSET AS A PERCENTAGE OF TOTAL OWNED GLA: 3,053,017 3,134,912 18,591,011 3,261,743 3.6% ------------------------------------------------------------------------------------------------------------------------------------ STRIP CENTER REDEVELOPMENT 752,794 753,335 ------------------------------------------------------------------------------------------------------------------------------------ 26,774,248 26,774,248 26,774,248 26,774,248 ------------------------------------------------------------------------------------------------------------------------------------
(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. (3) These properties are currently under agreement of sale. (4) The Gallery at Market East I & The Gallery at Market East II were counted as one property. PAGE 17C PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] QUARTERLY ACTIVITY PROPERTY ACQUISITIONS/DISPOSITIONS SUMMARY
------------------------------------------------------------------------------------------------------------------------------------ NAME OF PROJECT, LOCATION SQUARE FEET/UNITS/ACRES OWNERSHIP INTEREST ------------------------------------------------------------------------------------------------------------------------------------ ACQUISITIONS: The Gallery at Market East II, Philadelphia, PA SQUARE FEET 334,400 100% Cherry Hill, Cherry Hill, NJ 1,266,080 27% ----------------- TOTAL ACQUISITIONS SQUARE FEET 1,600,480 DIVESTITURES None TOTAL DIVESTITURES PENDING DIVESTITURES: Bradley Square Mall, Cleveland, TN, Martinsburg Mall, Martinsburg, WV, Mount Berry Square Mall, Rome, GA, Shenango Valley Mall, Hermitage, PA and West Manchester Mall, York, PA. SQUARE FEET 2,625,806 Rio Grande Mall 165,583 Schuylkill Mall, Frackville, PA 726,634 ----------------- TOTAL PENDING DIVESTITURES SQUARE FEET 3,518,023 ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ DATE ACQUIRED, COMPLETED, OR SOLD TOTAL COST OR PRICE PREIT'S COST OR PRICE ------------------------------------------------------------------------------------------------------------------------------------ ACQUISITIONS: The Gallery at Market East II, Philadelphia, PA 2Q04 $ 32,400,000 $ 32,400,000 Cherry Hill, Cherry Hill, NJ 2Q04 $ 17,834,565 $ 17,834,565 ------------- ------------- TOTAL ACQUISITIONS $ 50,234,565 $ 50,234,565 DIVESTITURES None TOTAL DIVESTITURES PENDING DIVESTITURES: Bradley Square Mall, Cleveland, TN, Martinsburg Mall, Martinsburg, WV, Mount Berry Square Mall, Rome, GA, Shenango Valley Mall, Hermitage, PA and West Manchester Mall, York, PA. 3Q04 $ 110,700,000 $ 110,700,000 Rio Grande Mall 3Q04 $ 4,100,000 $ 4,100,000 Schuylkill Mall, Frackville, PA N/A N/A N/A ------------- ------------- TOTAL PENDING DIVESTITURES $ 114,800,000 $ 114,800,000 ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ EXPECTED NOI CAP (1) MAJOR TENANTS ------------------------------------------------------------------------------------------------------------------------------------ ACQUISITIONS: The Gallery at Market East II, Philadelphia, PA 9.5% Burlington Coat Factory Cherry Hill, Cherry Hill, NJ N/A JC Penney, Macy's, Strawbridge's TOTAL ACQUISITIONS DIVESTITURES None TOTAL DIVESTITURES PENDING DIVESTITURES: Bradley Square Mall, Cleveland, TN, Martinsburg Mall, Martinsburg, WV, Mount Berry Square Mall, Rome, GA, Shenango Valley Mall, Hermitage, PA and West Manchester Mall, York, PA. 11.0% Rio Grande Mall 11.0% Schuylkill Mall, Frackville, 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 18 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] DEVELOPMENT ACTIVITY
----------------------------------------------------------------------------------------------------------------------- NAME OF PROJECT LOCATION PROPERTY TYPE TOTAL PROJECTED PROPERTY GLA (SQ FT) (1) ----------------------------------------------------------------------------------------------------------------------- Christiana Power Center (Phase II) (2) Newark, DE Power Center 355,670 Lacey Ocean County, NJ Power Center 273,111 New Garden New Garden Twp, PA Power Center 404,614 Pavilion at Market East (3) Philadelphia, PA Land N/A ----------------------------------------------------------------------------------------------------------------------- TOTAL DEVELOPMENT ACTIVITY 1,033,395 -----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ NAME OF PROJECT TOTAL PROJECTED COST (1) PREIT'S SHARE PREIT'S SHARE OF EXPECTED OF COST INVESTMENT TO DATE STABILIZED NOI CAP ------------------------------------------------------------------------------------------------------------------------------------ Christiana Power Center (Phase II) (2) N/A N/A $ 4,632,954 N/A Lacey 33,989,196 25,539,196 2,551,087 10.0% New Garden 42,590,062 27,830,062 1,391,860 8.5% Pavilion at Market East (3) N/A N/A 1,505,540 N/A ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DEVELOPMENT ACTIVITY $ 78,569,258 $ 53,369,258 $ 10,081,441 9.2% ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ NAME OF PROJECT CONST START DATE OF INITIAL EXPECTED DATE OF STABILIZED OPERATIONS STATUS DATE OCCUPANCY COMPLETION DATE ------------------------------------------------------------------------------------------------------------------------------------ Christiana Power Center (Phase II) (2) N/A N/A N/A N/A Development Lacey 4Q04 3Q05 3Q05 4Q05 Development New Garden 2Q05 1Q06 1Q06 2Q06 Development Pavilion at Market East (3) N/A N/A N/A N/A Construction ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DEVELOPMENT ACTIVITY ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ NAME OF PROJECT % COMP. % LEASED % OCCUPIED ANCHORS PREIT'S SHARE ------------------------------------------------------------------------------------------------------------------------------------ Christiana Power Center (Phase II) (2) N/A 0% 0% 100% Lacey 10% 48% 0% Home Depot 100% New Garden 5% 32% 0% Home Depot, Supermarket 100% Pavilion at Market East (3) N/A N/A N/A TBD 50% ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DEVELOPMENT ACTIVITY ------------------------------------------------------------------------------------------------------------------------------------
(1) GLA & total project cost include tenants that purchased their respective land; therefore, the % leased & occupied will also include these tenants. (2) On April 28, 2004, the Supreme Court of the State of Delaware affirmed a Court of Chancery determination that the Delaware Department of Transportation violated the terms of a 1992 Settlement Agreement pertaining to the development of the Company's Christiana Phase II project. The Company owns a 50% interest in this planned approximately 356,000 square foot power center project located in Newark, Delaware adjacent to the Company's Christiana Power Center I. Under the terms of the Supreme Court decision the matter has been remitted to the Superior Court of the State of Delaware for a determination of the damages to which the Company is entitled. The Company is not in a position to predict the outcome of this proceeding. (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 (1) ------------------------------------------------------------------------------------------------------------------------------------ NAME OF PROJECT LOCATION PROPERTY TYPE TOTAL PROJECTED PROPERTY GLA (SQ FT) (1) ------------------------------------------------------------------------------------------------------------------------------------ Prince Georges Plaza (2)(3) Hyattsville, MD Enclosed Mall 893,274 Echelon Mall (4) Voorhees, NJ Enclosed Mall 1,187,631 TOTAL REDEVELOPMENT ACTIVITY $ 2,080,905 ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ NAME OF PROJECT TOTAL PROJECTED PREIT'S SHARE OF COST PREIT'S SHARE OF EXPECTED STABILIZED COST (1) INVESTMENT TO DATE NOI CAP ------------------------------------------------------------------------------------------------------------------------------------ Prince Georges Plaza (2)(3) $ 24,146,000 $ 18,000,000 $ 8,933,061 12.0% Echelon Mall (4) 13,500,000 458,873 11.0% ------------------------------------------------------------------------------------------------------------------------------------ TOTAL REDEVELOPMENT ACTIVITY $ 24,146,000 $ 31,500,000 $ 9,391,934 11.6% ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ NAME OF PROJECT CONST START DATE OF INITIAL EXPECTED DATE OF STABILIZED OPERATIONS STATUS DATE OCCUPANCY COMPLETION DATE ------------------------------------------------------------------------------------------------------------------------------------ Prince Georges Plaza (2)(3) 2Q03 4Q04 4Q04 4Q05 Construction Echelon Mall (4) 2Q06 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL REDEVELOPMENT ACTIVITY ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ NAME OF PROJECT % COMP. % LEASED % OCCUPIED ANCHORS PREIT'S SHARE ------------------------------------------------------------------------------------------------------------------------------------ Prince Georges Plaza (2)(3) 40% 65% 0% Target 100% Echelon Mall (4) Wal-Mart (4) 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 6/30/04. (4) Wal-Mart committed to the redevelopment plans at Echelon Mall. See PREIT's press release from 7/14/04. PAGE 19 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] TOP TWENTY TENANTS (BY PREIT'S SHARE OF ANNUALIZED BASE RENT)
----------------------------------------------------------- NUMBER OF STORES ----------------------------------------------------------- PERCENTAGE RENT IN LIEU OF FIXED RENT OR COMMON TENANT FIXED RENT AREA COSTS (1) TOTAL ------------------------------------------------------------------------------------------------------------------------------------ Gap, Inc./Old Navy 55 3 58 The Limited Stores, Inc. 80 20 100 JC Penney 29 5 34 Sears 30 3 33 Footlocker, Inc. 66 3 69 Zales 88 88 Hallmark Cards, Inc. 55 3 58 Sterling Jewelers, Inc. (Kay Jewelers) 42 42 Trans World Entertainment 35 35 Bon-Ton 17 1 18 American Eagle Outfitters 30 2 32 Borders 34 2 36 Regis Corp. 90 90 Shoe Show, Inc. 37 37 Boscov's 6 1 7 Kay Bee Toys (4) 31 4 35 Sun Capital Partners 26 2 28 Charming Shoppes, Inc. 27 2 29 Payless Shoe Source 41 5 46 Finish Line, Inc. 23 1 24 ------------------------------------------------------------------------------------------------------------------------------------ Total Top 20 Tenants 842 57 899 ------------------------------------------------------------------------------------------------------------------------------------ Total Retail Leased 3,650 ------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------- GLA OF STORES ---------------------------------------------------------- PERCENTAGE RENT IN LIEU OF FIXED RENT OR COMMON TENANT FIXED RENT AREA COSTS (1) TOTAL ------------------------------------------------------------------------------------------------------------------------------------ Gap, Inc./Old Navy 661,804 35,012 696,816 The Limited Stores, Inc. 484,381 65,557 549,938 JC Penney 2,382,812 698,567 3,081,379 Sears 3,039,832 412,236 3,452,068 Footlocker, Inc. 352,923 7,487 360,410 Zales 70,437 70,437 Hallmark Cards, Inc. 195,277 12,434 207,711 Sterling Jewelers, Inc. (Kay Jewelers) 58,625 58,625 Trans World Entertainment 162,199 162,199 Bon-Ton 1,284,678 1,284,678 American Eagle Outfitters 144,784 11,229 156,013 Borders 187,341 6,576 193,917 Regis Corp. 106,003 106,003 Shoe Show, Inc. 181,447 181,447 Boscov's 1,130,706 178,000 1,308,706 Kay Bee Toys (4) 133,438 17,233 150,671 Sun Capital Partners 85,401 7,810 93,211 Charming Shoppes, Inc. 201,958 11,949 213,907 Payless Shoe Source 135,640 15,782 151,422 Finish Line, Inc. 113,230 5,960 119,190 ------------------------------------------------------------------------------------------------------------------------------------ Total Top 20 Tenants 11,112,916 1,485,832 12,598,748 ------------------------------------------------------------------------------------------------------------------------------------ Total Retail Leased 24,542,623 ------------------------------------------------------------------------------------------------------------------------------------
PREIT'S SHARE OF ANNUALIZED PERCENT OF PREIT'S TENANT ANNUALIZED BASE RENT BASE RENT (2) TOTAL RETAIL BASE RENT ------------------------------------------------------------------------------------------------------------------------------------ Gap, Inc./Old Navy $13,471,006 $12,651,696 4.46% The Limited Stores, Inc. 10,992,275 10,509,393 3.70% JC Penney 7,471,319 7,340,213 2.59% Sears 6,599,582 6,443,850 2.27% Footlocker, Inc. 6,222,675 5,919,990 2.09% Zales 5,152,261 4,941,486 1.74% Hallmark Cards, Inc. 4,406,920 4,330,587 1.53% Sterling Jewelers, Inc. (Kay Jewelers) 3,790,589 3,603,089 1.27% Trans World Entertainment 3,761,652 3,583,416 1.26% Bon-Ton 3,394,099 3,394,099 1.20% American Eagle Outfitters 3,521,119 3,387,541 1.19% Borders 3,563,544 3,344,329 1.18% Regis Corp. 3,075,401 3,018,817 1.06% Shoe Show, Inc. 2,974,258 2,900,220 1.02% Boscov's 3,137,572 2,695,972 0.95% Kay Bee Toys (4) 2,822,006 2,681,537 0.94% Sun Capital Partners 2,738,254 2,654,674 0.94% Charming Shoppes, Inc. 2,785,512 2,646,474 0.93% Payless Shoe Source 2,777,542 2,634,605 0.93% Finish Line, Inc. 2,477,876 2,477,876 0.87% ------------------------------------------------------------------------------------------------------------------------------------ Total Top 20 Tenants 95,135,462 91,159,864 32.13% ------------------------------------------------------------------------------------------------------------------------------------ Total Retail Leased $292,686,732 $283,761,892(3) 100.00% ------------------------------------------------------------------------------------------------------------------------------------
(1) Income from lease(s) in which tenant pays percentage rent in lieu of fixed rent or common area costs are not included in annualized base rent. (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 2nd 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 20 [GRAPHIC OMITTED] [GRAPHIC OMITTED] PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) RETAIL LEASE EXPIRATION SCHEDULE - ANCHORS(1) -------------------------------------------------------------------------------- YEAR LEASES GROSS LEASABLE AREA -------------------------------------------------------------------------------- LEASE EXPIRATION YEAR NUMBER OF LEASES EXPIRING GLA PERCENT OF EXPIRING TOTAL -------------------------------------------------------------------------------- Prior (2) 2 105,908 0.83% 2004 3 212,640 1.67% 2005 21 1,592,745 12.49% 2006 23 1,517,159 11.90% 2007 10 894,155 7.01% 2008 16 1,070,427 8.39% 2009 13 1,034,344 8.11% 2010 9 889,129 6.97% 2011 13 1,169,231 9.17% 2012 6 520,707 4.08% 2013 5 304,486 2.39% 2014 6 534,927 4.20% Thereafter 25 2,905,553 22.79% -------------------------------------------------------------------------------- TOTALS: 152 12,751,411 100% -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- YEAR ANNUALIZED BASE RENT -------------------------------------------------------------------------------- PREIT'S SHARE PERCENT OF AVERAGE RENT IN OF RENT TOTAL EXPIRING EXPIRING IN EXPIRING (PREIT's BASE RENT LEASE EXPIRATION YEAR YEAR YEAR SHARE) PSF ------------------------------------------------------------------------------ Prior (2) $ 417,840 $ 417,840 1.02% $ 3.95 2004 543,216 471,360 1.15% 2.55 2005 5,453,210 5,453,210 13.31% 3.42 2006 3,843,959 3,843,959 9.38% 2.53 2007 2,197,139 2,187,239 5.34% 2.46 2008 2,799,649 2,799,649 6.83% 2.62 2009 3,416,401 2,451,696 5.98% 3.30 2010 2,797,803 2,797,803 6.83% 3.15 2011 4,958,649 3,835,834 9.36% 4.24 2012 1,332,856 1,295,975 3.16% 2.56 2013 2,286,713 2,286,713 5.58% 7.51 2014 2,458,228 2,458,228 6.00% 4.60 Thereafter 12,616,246 10,684,489 26.07% 4.34 -------------------------------------------------------------------------------- TOTALS: $45,121,909 $40,983,995 100% $3.54 -------------------------------------------------------------------------------- (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 21 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] RETAIL LEASE EXPIRATION SCHEDULE - NON-ANCHORS(1)
------------------------------------------------------------------------------------------------------------------------------------ YEAR LEASES GROSS LEASABLE AREA ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF LEASES PERCENT OF LEASE EXPIRATION YEAR EXPIRING EXPIRING GLA TOTAL ------------------------------------------------------------------------------------------------------------------------------------ Prior (2) 174 470,122 3.99% 2004 177 318,872 2.70% 2005 484 1,215,069 10.30% 2006 444 1,235,606 10.48% 2007 410 1,134,196 9.62% 2008 365 1,149,763 9.75% 2009 334 1,011,848 8.58% 2010 337 1,171,938 9.94% 2011 244 1,117,164 9.47% 2012 208 843,515 7.15% 2013 185 596,298 5.06% 2014 82 441,936 3.75% Thereafter 54 1,084,885 9.20% ------------------------------------------------------------------------------------------------------------------------------------ TOTALS: 3,498 11,791,212 100% ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ YEAR ANNUALIZED BASE RENT ------------------------------------------------------------------------------------------------------------------------------------ PERCENT OF AVERAGE PREIT'S SHARE OF TOTAL EXPIRING RENT IN EXPIRING RENT IN EXPIRING (PREIT'S BASE RENT LEASE EXPIRATION YEAR YEAR YEAR (3) SHARE) PSF ------------------------------------------------------------------------------------------------------------------------------------ Prior (2) $ 8,540,195 $ 8,091,290 3.34% $ 18.17 2004 7,158,963 6,753,996 2.79% 22.45 2005 26,451,292 25,334,032 10.45% 21.77 2006 27,620,526 26,149,089 10.79% 22.35 2007 24,833,942 23,715,013 9.78% 21.90 2008 26,003,267 25,057,465 10.34% 22.62 2009 24,689,963 24,035,706 9.92% 24.40 2010 27,031,364 26,040,906 10.74% 23.07 2011 24,851,926 21,785,632 8.99% 22.25 2012 20,479,404 18,742,163 7.73% 24.28 2013 14,983,322 14,114,089 5.82% 25.13 2014 9,997,345 8,278,644 3.42% 22.62 Thereafter 17,662,343 14,296,812 5.90% 16.28 ------------------------------------------------------------------------------------------------------------------------------------ TOTALS: $260,303,852 $242,394,837 100% $22.08 ------------------------------------------------------------------------------------------------------------------------------------
(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 22 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] LEASING ACTIVITY SUMMARY RETAIL
AVERAGE PREVIOUS AVERAGE NEW BASE NEW LEASE NUMBER GLA BASE RENT PSF RENT PSF ------ --- ------------- -------- PREVIOUSLY LEASED SPACE: 1st Quarter 13 32,324 $ 18.76 $ 24.84 2nd Quarter 17 42,013 24.59 32.96 3rd Quarter 4th Quarter ----------------------------------------------------------------- TOTAL OR AVERAGE 30 74,337 $ 22.05 $ 29.43 ================================================================= PREVIOUSLY VACANT SPACE: 1st Quarter 12 26,926 $ - $ 23.40 2nd Quarter 22 36,904 - 27.35 3rd Quarter 4th Quarter ----------------------------------------------------------------- TOTAL OR AVERAGE 34 63,830 $ - $ 25.68 =================================================================
NEW LEASE INCREASE/ TOTAL ANNUALIZED DECREASE IN ANNUALIZED TENANT ANNUALIZED LEASING COSTS OF BASE RENT PSF IMPROVEMENTS PSF (1) COMMISSIONS PSF (1)(2) LEASING PSF (1)(2) ------------- -------------------- ---------------------- ------------------ PREVIOUSLY LEASED SPACE: 1st Quarter $ 6.08 $ 1.76 $ - $ 1.76 2nd Quarter 8.37 2.50 - 2.50 3rd Quarter - - - 4th Quarter - - - --------------------------------------------------------------------------------------------------- TOTAL OR AVERAGE $ 7.37 $ 2.18 $ - $ 2.18 =================================================================================================== PREVIOUSLY VACANT SPACE: 1st Quarter $ 23.40 $ 1.08 $ - $ 1.08 2nd Quarter 27.35 1.35 1.35 3rd Quarter - - 4th Quarter - - --------------------------------------------------------------------------------------------------- TOTAL OR AVERAGE $ 25.68 $ 1.24 $ - $ 1.24 ===================================================================================================
AVERAGE PREVIOUS AVERAGE NEW BASE RENEWAL (3) NUMBER GLA BASE RENT PSF RENT PSF ------ --- ------------- -------- 1st Quarter (4) 60 353,520 $ 12.09 $ 13.40 2nd Quarter 80 178,337 21.69 22.57 3rd Quarter 4th Quarter ----------------------------------------------------------------- TOTAL OR AVERAGE 140 531,857 $ 15.31 $ 16.47 ----------------------------------------------------------------- RENEWAL (3) INCREASE/ TOTAL ANNUALIZED DECREASE IN ANNUALIZED TENANT ANNUALIZED LEASING COSTS OF BASE RENT PSF IMPROVEMENTS PSF (1) COMMISSIONS PSF (1)(2) LEASING PSF (1)(2) ------------- -------------------- ---------------------- ------------------ 1st Quarter (4) $ 1.31 $ - $ - $ - 2nd Quarter 0.88 - 3rd Quarter - - 4th Quarter - - --------------------------------------------------------------------------------------------------- TOTAL OR AVERAGE $ 1.17 $ - $ - $ - ===================================================================================================
(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. (4) Includes a lease to JC Penney of 176,834 square feet for a base rent of $1.20 per square foot at Shenango Valley Mall. The other 59 renewal leases with 176,686 had an average previous base rent psf of $22.99 and an average new base rent psf of $25.61 representing an increase of $2.62 in base rent psf. PAGE 23 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] CAPITAL EXPENDITURES
Q2 04 (3 months ended June 30, 2004) ----------------------------------------------------- RETAIL WHOLLY OWNED JOINT VENTURES TOTAL -------------------------------------------------- ----------------------------------------------------- New development projects $ 182,896 $ - $ 182,896 Redevelopment projects with incremental GLA 3,823,606 3,823,606 and/or Anchor Replacement - - Renovation with no incremental GLA - - Tenant allowances 950,906 - 950,906 Operational capital expenditures at properties: - CAM expenditures 444,779 - 444,779 Non-CAM expenditures 983,088 21,498 1,004,586 ------------ ---------- ------------- SUBTOTAL OPERATIONAL CAPITAL EXPENDITURES AT PROPERTIES $ 1,427,867 $ 21,498 $ 1,449,365 ------------ ---------- ------------- TOTAL $ 6,385,275 $ 21,498 $ 6,406,773 ------------ ---------- -------------
PAGE 24 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED]
Q204 ENCLOSED MALLS -------------------------------------------------------------- (Includes Non-Anchor Owned Space) TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR W/ANCHOR (NON-ANCHOR) (NON-ANCHOR) % LEASED % AVAILABLE % LEASED % AVAILABLE -------------------------------------------------------------- Beaver Valley Mall 89.6% 10.4% 77.7% 22.3% Bradley Square 83.7% 16.3% 56.5% 43.5% Capital City 99.3% 0.7% 98.8% 1.2% Chambersburg Mall 93.3% 6.7% 85.7% 14.3% Cherry Hill Mall 93.6% 6.4% 93.6% 6.4% Crossroads Mall 95.2% 4.8% 88.8% 11.2% Dartmouth Mall 95.8% 4.2% 93.1% 6.9% Echelon Mall 37.6% 62.4% 64.6% 35.4% Exton Square Mall 92.7% 7.3% 84.0% 16.0% Francis Scott Key Mall 95.8% 4.2% 91.4% 8.6% Jacksonville Mall 97.8% 2.2% 95.5% 4.5% Laurel Mall 95.1% 4.9% 87.0% 13.0% Lehigh Valley Mall 89.0% 11.0% 84.1% 15.9% Logan Valley Mall 98.0% 2.0% 95.2% 4.8% Lycoming Mall 90.6% 9.4% 81.7% 18.3% Magnolia Mall 92.8% 7.2% 81.6% 18.4% Martinsburg Mall 93.2% 6.8% 77.1% 22.9% Moorestown Mall 94.6% 5.4% 87.7% 12.3% Mount Berry Square 86.6% 13.4% 69.4% 30.6% New River Valley Mall 78.1% 21.9% 84.7% 15.3% Nittany Mall 94.8% 5.2% 89.5% 10.5% North Hanover Mall 93.1% 6.9% 80.8% 19.2% Palmer Park Mall 98.5% 1.5% 94.8% 5.2% Patrick Henry Mall 99.5% 0.5% 98.9% 1.1% Phillipsburg Mall 90.2% 9.8% 77.2% 22.8% Plymouth Meeting Mall 73.2% 26.8% 89.6% 10.4% Prince Georges Plaza 88.8% 11.2% 92.9% 7.1% Schuylkill Mall 76.5% 23.5% 69.2% 30.8% Shenango Valley Mall 95.4% 4.6% 78.5% 21.5% South Mall 96.8% 3.2% 94.0% 6.0% The Gallery at Market East I 94.4% 5.6% 94.4% 5.6% The Gallery at Market East II 81.5% 18.5% 70.2% 29.8% Uniontown Mall 95.6% 4.4% 89.0% 11.0% Valley Mall 99.2% 0.8% 98.5% 1.5% Valleyview Mall 93.4% 6.6% 90.7% 9.3% Viewmont Mall 99.0% 1.0% 97.5% 2.5% Washington Crown Center 93.9% 6.1% 88.7% 11.3% West Manchester Mall 80.8% 19.2% 62.2% 37.8% Willow Grove Park 94.9% 5.1% 91.4% 8.6% Wiregrass Mall 82.6% 17.4% 82.6% 17.4% Wyoming Valley Mall 98.0% 2.0% 94.4% 5.6% ------------------------------------------------------------------------------------------------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE (1) 90.2% 9.8% 85.6% 14.4% ------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------------- WHOLLY OWNED PROPERTIES (1) 90.1% 9.9% 85.6% 14.4% JOINT VENTURE PROPERTIES 91.8% 8.2% 85.0% 15.0% -------------------------------------------------------------- PRI-MANAGED (1) 90.1% 9.9% 85.6% 14.4% NON PRI-MANAGED 91.8% 8.2% 85.0% 15.0% -------------------------------------------------------------- SAME PROPERTIES/EXISTING 92.8% 7.2% 84.9% 15.1% NEW 89.7% 10.3% 85.7% 14.3% REDEVELOPMENT PROPERTIES 88.8% 11.2% 92.9% 7.1% -------------------------------------------------------------- CONTINUING OPERATIONS (1) 91.0% 9.0% 87.8% 12.2% DISCONTINUED OPERATIONS 85.6% 14.4% 68.0% 32.0% --------------------------------------------------------------
% CHANGE ENCLOSED MALLS -------------------------------------------------------------- (Includes Non-Anchor Owned Space) TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR W/ANCHOR (NON-ANCHOR) (NON-ANCHOR) % LEASED % AVAILABLE % LEASED % AVAILABLE -------------------------------------------------------------- Beaver Valley Mall 0.0% 0.0% -0.1% 0.1% 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 -0.1% 0.1% -0.1% 0.1% Crossroads Mall N/A N/A N/A N/A Dartmouth Mall 16.4% -16.4% 3.9% -3.9% Echelon Mall -14.6% 14.6% -6.0% 6.0% Exton Square Mall -3.5% 3.5% -6.7% 6.7% Francis Scott Key Mall N/A N/A N/A N/A Jacksonville Mall N/A N/A N/A N/A Laurel Mall -0.8% 0.8% -2.0% 2.0% Lehigh Valley Mall -2.9% 2.9% -4.2% 4.2% Logan Valley Mall N/A N/A N/A N/A Lycoming Mall N/A N/A N/A N/A Magnolia Mall -0.9% 0.9% -12.2% 12.2% Martinsburg Mall N/A N/A N/A N/A Moorestown Mall -1.4% 1.4% -3.3% 3.3% 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 1.9% -1.9% 6.2% -6.2% Patrick Henry Mall N/A N/A N/A N/A Phillipsburg Mall N/A N/A N/A N/A Plymouth Meeting Mall -19.2% 19.2% 0.5% -0.5% Prince Georges Plaza 0.6% -0.6% 1.2% -1.2% 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 I 0.5% -0.5% 0.5% -0.5% The Gallery at Market East II 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 0.3% -0.3% 0.6% -0.6% Wiregrass Mall N/A N/A N/A N/A Wyoming Valley Mall N/A N/A N/A N/A ------------------------------------------------------------------------------------------------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE (1) 2.2% -2.2% -1.0% 1.0% ------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------------- WHOLLY OWNED PROPERTIES (1) 4.6% -4.6% -0.1% 0.1% JOINT VENTURE PROPERTIES -2.7% 2.7% -4.2% 4.2% -------------------------------------------------------------- PRI-MANAGED (1) 3.2% -3.2% -0.7% 0.7% NON PRI-MANAGED -1.9% 1.9% -3.5% 3.5% -------------------------------------------------------------- SAME PROPERTIES/EXISTING 2.4% -2.4% 0.4% -0.4% NEW 3.7% -3.7% -2.3% 2.3% REDEVELOPMENT PROPERTIES 0.6% -0.6% 1.2% -1.2% -------------------------------------------------------------- CONTINUING OPERATIONS (1) 3.0% -3.0% 1.2% -1.2% DISCONTINUED OPERATIONS N/A N/A N/A N/A --------------------------------------------------------------
Q203 ENCLOSED MALLS -------------------------------------------------------------- (Includes Non-Anchor Owned Space) TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR W/ANCHOR (NON-ANCHOR) (NON-ANCHOR) % LEASED % AVAILABLE % LEASED % AVAILABLE -------------------------------------------------------------- Beaver Valley Mall 89.6% 10.4% 77.8% 22.2% 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 93.76% 6.24% 93.76% 6.24% Crossroads Mall N/A N/A N/A N/A Dartmouth Mall 79.5% 20.5% 89.2% 10.8% Echelon Mall 52.3% 47.7% 70.6% 29.4% Exton Square Mall 96.2% 3.8% 90.8% 9.2% Francis Scott Key Mall N/A N/A N/A N/A Jacksonville Mall N/A N/A N/A N/A Laurel Mall 95.9% 4.1% 89.0% 11.0% Lehigh Valley Mall 91.9% 8.1% 88.2% 11.8% Logan Valley Mall N/A N/A N/A N/A Lycoming Mall N/A N/A N/A N/A Magnolia Mall 93.8% 6.2% 93.8% 6.2% Martinsburg Mall N/A N/A N/A N/A Moorestown Mall 96.0% 4.0% 91.0% 9.0% 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 96.6% 3.4% 88.6% 11.4% Patrick Henry Mall N/A N/A N/A N/A Phillipsburg Mall N/A N/A N/A N/A Plymouth Meeting Mall 92.4% 7.6% 89.0% 11.0% Prince Georges Plaza 88.2% 11.8% 91.7% 8.3% 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 I 93.9% 6.1% 93.9% 6.1% The Gallery at Market East II 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 94.5% 5.5% 90.9% 9.1% Wiregrass Mall N/A N/A N/A N/A Wyoming Valley Mall N/A N/A N/A N/A ------------------------------------------------------------------------------------------------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE (1) 88.0% 12.0% 86.6% 13.4% ------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------------- WHOLLY OWNED PROPERTIES (1) 85.6% 14.4% 85.7% 14.3% JOINT VENTURE PROPERTIES 94.5% 5.5% 89.2% 10.8% -------------------------------------------------------------- PRI-MANAGED (1) 87.0% 13.0% 86.3% 13.7% NON PRI-MANAGED 93.7% 6.3% 88.5% 11.5% --------------------------------------------------------------- SAME PROPERTIES/EXISTING 90.3% 9.7% 84.5% 15.5% NEW 86.0% 14.0% 88.0% 12.0% REDEVELOPMENT PROPERTIES 88.2% 11.8% 91.7% 8.3% -------------------------------------------------------------- CONTINUING OPERATIONS (1) 88.0% 12.0% 86.6% 13.4% DISCONTINUED OPERATIONS N/A N/A N/A N/A --------------------------------------------------------------
(1) Prince Georges Plaza is classified as a redevelopment property and is not included in the weighted average. PAGE 25 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED]
ENCLOSED MALLS (Includes Non-Anchor Owned Space) Q204 ------------------------------------------------------------------------ AVG BASE RENT AVG % RENT ADDITIONAL AVG COMP OCCUP. COST PSF(1) PSF(1) CHARGES PSF SALES PSF(2) RATIO ------------------------------------------------------------------------ Beaver Valley Mall $ 16.77 $ 0.50 $ 6.29 $ 242 9.74% Bradley Square 16.53 0.43 3.77 300 6.91% Capital City 21.90 0.87 6.27 351 8.27% Chambersburg Mall 19.80 0.09 5.42 243 10.42% Cherry Hill Mall 35.81 0.94 17.60 422 12.88% Crossroads Mall 16.65 0.87 7.20 252 9.81% Dartmouth Mall 19.80 1.37 7.61 389 7.40% Echelon Mall 23.66 0.22 12.16 221 16.31% Exton Square Mall 34.77 0.71 15.04 382 13.22% Francis Scott Key Mall 21.06 0.66 7.02 273 10.53% Jacksonville Mall 21.29 1.54 5.78 371 7.71% Laurel Mall 13.41 0.45 6.47 264 7.70% Lehigh Valley Mall 29.03 0.58 10.05 432 9.19% Logan Valley Mall 20.46 1.52 7.33 296 9.90% Lycoming Mall 14.40 1.02 4.52 249 8.01% Magnolia Mall 24.58 0.36 10.38 310 11.40% Martinsburg Mall 17.43 0.33 10.06 261 10.66% Moorestown Mall 24.91 0.93 13.68 345 11.45% Mount Berry Square 16.24 0.69 4.37 220 9.68% New River Valley Mall 19.22 0.49 3.74 253 9.27% Nittany Mall 20.24 0.98 7.44 254 11.28% North Hanover Mall 19.60 1.35 7.98 271 10.68% Palmer Park Mall 21.31 1.10 9.86 328 9.84% Patrick Henry Mall 31.01 1.75 10.49 437 9.90% Phillipsburg Mall 22.66 0.67 10.16 287 11.67% Plymouth Meeting Mall 18.55 0.42 8.23 258 10.54% Prince Georges Plaza (3) 23.78 1.34 12.66 374 10.10% Schuylkill Mall 10.33 0.24 2.92 212 6.36% Shenango Valley Mall 17.63 0.79 7.88 265 9.92% South Mall 13.20 0.47 3.40 280 6.10% The Gallery at Market East I 33.67 0.54 9.77 351 12.53% The Gallery at Market East II 34.03 0.95 3.55 419 9.19% Uniontown Mall 13.98 0.85 4.80 252 7.79% Valley Mall 18.06 0.90 5.92 314 7.92% Valleyview Mall 23.03 0.52 13.62 309 12.03% Viewmont Mall 22.25 1.70 6.83 350 8.79% Washington Crown Center 16.18 0.33 4.82 256 8.33% West Manchester Mall 16.55 0.34 4.05 210 9.97% Willow Grove Park 37.92 0.30 18.91 406 14.07% Wiregrass Mall 20.24 0.52 7.88 258 11.10% Wyoming Valley Mall 23.11 0.49 7.46 309 10.05% ------------------------------------------------------------------------------------------------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE $ 22.36 $ 0.76 $ 8.59 $ 318 9.98% ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------ WHOLLY OWNED PROPERTIES (1) $ 22.24 $ 0.77 $ 8.57 $ 312 10.11% JOINT VENTURE PROPERTIES $ 24.10 $ 0.54 $ 8.92 $ 404 8.31% ------------------------------------------------------------------------ PRI-MANAGED (1) $ 22.24 $ 0.77 $ 8.57 $ 312 10.11% NON PRI-MANAGED $ 24.10 $ 0.54 $ 8.92 $ 404 8.31% ------------------------------------------------------------------------ SAME PROPERTIES/EXISTING $ 21.42 $ 0.72 $ 8.31 $ 348 8.75% NEW $ 22.54 $ 0.76 $ 8.65 $ 312 10.23% REDEVELOPMENT PROPERTIES $ 23.78 $ 1.34 $ 12.66 $ 374 10.10% ------------------------------------------------------------------------ CONTINUING OPERATIONS (1) $ 23.08 $ 0.79 $ 8.94 $ 324 10.11% DISCONTINUED OPERATIONS $ 15.11 $ 0.43 $ 5.08 $ 237 8.72% ------------------------------------------------------------------------
ENCLOSED MALLS (Includes Non-Anchor Owned Space) % CHANGE ------------------------------------------------------------------------ AVG BASE RENT AVG % RENT ADDITIONAL AVG COMP OCCUP. COST PSF PSF CHARGES PSF SALES PSF RATIO ------------------------------------------------------------------------ Beaver Valley Mall -5.0% 14.0% 17.8% 2.1% -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 2.8% 15.7% 11.0% 7.9% -0.3% Crossroads Mall N/A N/A N/A N/A N/A Dartmouth Mall 5.7% 0.9% -4.5% -2.3% 0.3% Echelon Mall 2.0% 9.6% 2.5% -8.3% 1.7% Exton Square Mall 6.4% 34.0% 77.0% 6.1% 1.6% 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 4.0% -37.4% 6.1% 0.4% 0.2% Lehigh Valley Mall -2.8% 1.5% 3.4% -0.6% -0.1% 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 0.7% -73.5% 9.9% 0.3% 0.0% Martinsburg Mall N/A N/A N/A N/A N/A Moorestown Mall 3.3% 46.7% 7.3% 4.2% 0.1% 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 2.2% -15.7% 2.0% -0.3% 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 Mall -2.4% -11.6% -0.8% -2.6% 0.1% Prince Georges Plaza (3) 3.4% 22.0% 20.1% -5.1% 1.3% 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 I 4.7% 72.7% 91.2% -14.6% 3.4% The Gallery at Market East II 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 1.2% -27.4% 3.7% -1.7% 0.5% Wiregrass Mall N/A N/A N/A N/A N/A Wyoming Valley Mall N/A N/A N/A N/A N/A ------------------------------------------------------------------------------------------------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE -14.6% 15.8% -17.7% -8.3% -0.8% ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------ WHOLLY OWNED PROPERTIES (1) -12.7% 16.9% -14.4% -3.9% -1.0% JOINT VENTURE PROPERTIES -14.1% -14.8% -23.3% 0.8% -1.8% ------------------------------------------------------------------------ PRI-MANAGED (1) -16.0% 16.9% -20.5% -6.8% -1.2% NON PRI-MANAGED -2.1% -12.6% 3.7% -1.3% 0.0% ------------------------------------------------------------------------ SAME PROPERTIES/EXISTING -0.7% -16.0% 5.2% -0.5% 0.1% NEW -22.8% 46.5% -28.6% -9.3% -1.9% REDEVELOPMENT PROPERTIES 3.4% 22.0% 20.1% -5.1% 1.3% ------------------------------------------------------------------------ CONTINUING OPERATIONS (1) -11.8% 20.8% -14.4% -6.3% -0.7% DISCONTINUED OPERATIONS N/A N/A N/A N/A N/A ------------------------------------------------------------------------
ENCLOSED MALLS (Includes Non-Anchor Owned Space) Q203 ------------------------------------------------------------------------ AVG BASE RENT AVG % RENT ADDITIONAL AVG COMP OCCUP. COST PSF(1) PSF(1) CHARGES PSF SALES PSF(2) RATIO ------------------------------------------------------------------------ Beaver Valley Mall $ 17.65 $ 0.43 $ 5.34 $ 237 9.88% 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 34.83 0.82 15.86 391 13.17% Crossroads Mall N/A N/A N/A N/A N/A Dartmouth Mall 18.72 1.36 7.97 398 7.05% Echelon Mall 23.19 0.20 11.85 241 14.62% Exton Square Mall 32.66 0.53 8.50 360 11.58% 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 12.90 0.72 6.10 263 7.50% Lehigh Valley Mall 29.86 0.57 9.71 434 9.25% 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 24.40 1.37 9.44 309 11.40% Martinsburg Mall N/A N/A N/A N/A N/A Moorestown Mall 24.11 0.63 12.75 331 11.33% 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 20.86 1.30 9.67 329 9.68% 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 Mall 19.00 0.48 8.29 265 10.48% Prince Georges Plaza (3) 22.99 1.10 10.55 394 8.79% 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 I 32.17 0.31 5.11 411 9.15% The Gallery at Market East II 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 37.48 0.41 18.24 413 13.59% Wiregrass Mall N/A N/A N/A N/A N/A Wyoming Valley Mall N/A N/A N/A N/A N/A ------------------------------------------------------------------------------------------------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE $ 26.17 $ 0.65 $ 10.44 $ 346 10.76% ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------ WHOLLY OWNED PROPERTIES (1) $ 25.49 $ 0.66 $ 10.01 $ 325 11.13% JOINT VENTURE PROPERTIES $ 28.05 $ 0.64 $ 11.62 $ 400 10.07% ------------------------------------------------------------------------ PRI-MANAGED (1) $ 26.46 $ 0.66 $ 10.79 $ 335 11.31% NON PRI-MANAGED $ 24.61 $ 0.62 $ 8.60 $ 409 8.27% ------------------------------------------------------------------------- SAME PROPERTIES/EXISTING $ 21.58 $ 0.85 $ 7.90 $ 350 8.67% NEW $ 29.20 $ 0.52 $ 12.11 $ 344 12.16% REDEVELOPMENT PROPERTIES $ 22.99 $ 1.10 $ 10.55 $ 394 8.79% ------------------------------------------------------------------------- CONTINUING OPERATIONS (1) $ 26.17 $ 0.65 $ 10.44 $ 346 10.76% DISCONTINUED OPERATIONS N/A N/A N/A N/A N/A -------------------------------------------------------------------------
(1) Base rent is actual for Q204. Additional charges and % rent are projections for 2004. (2) Average comparable sales for Q203 are actual. (3) Prince Georges Plaza is classified as a redevelopment property and is not included in the weighted average. PAGE 26 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] POWER CENTERS (Includes Non-Anchor Owned Space)
Q204 ------------------------------------------- AVG BASE RENT AVG % RENT ADDITIONAL PSF (1) PSF (1) CHARGES PSF ------------------------------------------- Christiana Power Center $ 20.66 $ - $ 1.96 Creekview Shopping Center 14.37 - 2.72 Northeast Tower Center 13.68 - 3.04 Paxton Towne Centre 16.10 - 2.43 The Court at Oxford Valley 15.37 - 3.90 Red Rose Commons 13.86 0.06 3.21 Whitehall Mall 10.61 0.31 3.19 Metroplex Shopping Center 18.13 - 3.58 ------------------------------------------- POWER CENTERS WEIGHTED AVERAGE $ 15.39 $ 0.04 $ 3.16 ------------------------------------------- ------------------------------------------- WHOLLY OWNED PROPERTIES $ 15.86 $ - $ 2.58 JOINT VENTURE PROPERTIES $ 15.12 $ 0.07 $ 3.50 ------------------------------------------- PRI-MANAGED $ 15.86 $ - $ 2.58 NON PRI-MANAGED $ 15.12 $ 0.07 $ 3.50 ------------------------------------------- SAME PROPERTIES/EXISTING $ 15.39 $ 0.04 $ 3.16 NEW $ - $ - $ - REDEVELOPMENT PROPERTIES $ - $ - $ - -------------------------------------------
% CHANGE ------------------------------------------- AVG BASE RENT AVG % RENT ADDITIONAL PSF PSF CHARGES PSF ------------------------------------------- Christiana Power Center 6.7% -100.0% 6.9% Creekview Shopping Center 0.4% N/A -0.7% Northeast Tower Center 1.4% N/A -2.3% Paxton Towne Centre 1.1% N/A -7.9% The Court at Oxford Valley 1.5% -100.0% 3.5% Red Rose Commons 4.8% 250.0% 11.2% Whitehall Mall 0.1% 16.6% 4.0% Metroplex Shopping Center 0.0% N/A 3.7% --------------------------------------------------------------------------------------------------------- POWER CENTERS WEIGHTED AVERAGE 1.8% 9.3% 2.7% --------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- WHOLLY OWNED PROPERTIES 2.2% -100.0% -3.0% JOINT VENTURE PROPERTIES 1.6% 13.5% 5.4% --------------------------------------------------------------------------------------------------------- PRI-MANAGED 2.2% -100.0% -3.0% NON PRI-MANAGED 1.6% 13.5% 5.4% SAME PROPERTIES/EXISTING 1.8% 9.3% 2.7% --------------------------------------------------------------------------------------------------------- NEW N/A N/A N/A REDEVELOPMENT PROPERTIES N/A N/A N/A ---------------------------------------------------------------------------------------------------------
Q203 ------------------------------------------- AVG BASE RENT AVG % RENT ADDITIONAL PSF (1) PSF (1) CHARGES PSF ------------------------------------------- Christiana Power Center $ 19.37 $ 0.02 $ 1.84 Creekview Shopping Center 14.31 - 2.74 Northeast Tower Center 13.48 - 3.11 Paxton Towne Centre 15.93 - 2.64 The Court at Oxford Valley 15.14 0.03 3.77 Red Rose Commons 13.22 0.02 2.89 Whitehall Mall 10.60 0.27 3.07 Metroplex Shopping Center 18.13 - 3.45 --------------------------------------------------------------------------------------------------------- POWER CENTERS WEIGHTED AVERAGE $ 15.12 $ 0.04 $ 3.08 --------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- WHOLLY OWNED PROPERTIES $ 15.51 $ 0.00 $ 2.65 JOINT VENTURE PROPERTIES $ 14.88 $ 0.06 $ 3.32 --------------------------------------------------------------------------------------------------------- PRI-MANAGED $ 15.51 $ 0.00 $ 2.65 NON PRI-MANAGED $ 14.88 $ 0.06 $ 3.32 --------------------------------------------------------------------------------------------------------- SAME PROPERTIES/EXISTING $ 15.12 $ 0.04 $ 3.08 NEW $ - $ - $ - REDEVELOPMENT PROPERTIES $ - $ - $ - ---------------------------------------------------------------------------------------------------------
(1) Base rent is actual for Q204. Additional charges and % rent are projections for 2004.
Q204 ---------------------------------------------------------------- TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR % W/ANCHOR % (NON-ANCHOR) (NON-ANCHOR) LEASED AVAILABLE % LEASED % AVAILABLE ---------------------------------------------------------------- Christiana Power Center 100.0% 0.0% 100.0% 0.0% Creekview Shopping Center 100.0% 0.0% 100.0% 0.0% Northeast Tower Center 100.0% 0.0% 100.0% 0.0% Paxton Towne Centre 92.1% 7.9% 87.9% 12.1% The Court at Oxford Valley 100.0% 0.0% 100.0% 0.0% Red Rose Commons 99.2% 0.8% 99.2% 0.8% Whitehall Mall 95.7% 4.3% 90.4% 9.6% Metroplex Shopping Center 100.0% 0.0% 100.0% 0.0% ---------------------------------------------------------------- POWER CENTERS WEIGHTED AVERAGE 98.0% 2.0% 96.8% 3.2% ---------------------------------------------------------------- ---------------------------------------------------------------- WHOLLY OWNED PROPERTIES 97.3% 2.7% 95.1% 4.9% JOINT VENTURE PROPERTIES 98.5% 1.5% 97.9% 2.1% ---------------------------------------------------------------- PRI-MANAGED 97.3% 2.7% 95.1% 4.9% NON PRI-MANAGED 98.5% 1.5% 97.9% 2.1% ---------------------------------------------------------------- SAME PROPERTIES/EXISTING 98.0% 2.0% 96.8% 3.2% NEW N/A N/A N/A N/A REDEVELOPMENT PROPERTIES N/A N/A N/A N/A ----------------------------------------------------------------
OCCUPANCY CHANGE IN % OCCUPANCY ---------------------------------------------------------------- TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR % W/ANCHOR % (NON-ANCHOR) (NON-ANCHOR) LEASED AVAILABLE % LEASED % AVAILABLE ---------------------------------------------------------------- Christiana Power Center 0.0% 0.0% 0.0% 0.0% Creekview Shopping Center 0.0% 0.0% 0.0% 0.0% Northeast Tower Center 0.0% 0.0% 0.0% 0.0% Paxton Towne Centre 1.3% -1.3% 2.0% -2.0% The Court at Oxford Valley 2.9% -2.9% 4.7% -4.7% Red Rose Commons 0.0% 0.0% 0.0% 0.0% Whitehall Mall -1.9% 1.9% -4.3% 4.3% Metroplex Shopping Center 0.0% 0.0% 0.0% 0.0% ---------------------------------------------------------------- POWER CENTERS WEIGHTED AVERAGE 0.3% -0.3% 0.5% -0.5% ---------------------------------------------------------------- ---------------------------------------------------------------- WHOLLY OWNED PROPERTIES 0.5% -0.5% 0.8% -0.8% JOINT VENTURE PROPERTIES 0.2% -0.2% 0.2% -0.2% ---------------------------------------------------------------- PRI-MANAGED 0.5% -0.5% 0.8% -0.8% NON PRI-MANAGED 0.2% -0.2% 0.2% -0.2% ---------------------------------------------------------------- SAME PROPERTIES/EXISTING 0.3% -0.3% 0.5% -0.5% NEW N/A N/A N/A N/A REDEVELOPMENT PROPERTIES N/A N/A N/A N/A ----------------------------------------------------------------
Q203 ---------------------------------------------------------------- TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR % W/ANCHOR % (NON-ANCHOR) (NON-ANCHOR) LEASED AVAILABLE % LEASED % AVAILABLE ---------------------------------------------------------------- Christiana Power Center 100.0% 0.0% 100.0% 0.0% Creekview Shopping Center 100.0% 0.0% 100.0% 0.0% Northeast Tower Center 100.0% 0.0% 100.0% 0.0% Paxton Towne Centre 90.7% 9.3% 85.9% 14.1% The Court at Oxford Valley 97.1% 2.9% 95.3% 4.7% Red Rose Commons 99.2% 0.8% 99.2% 0.8% Whitehall Mall 97.6% 2.4% 94.7% 5.3% Metroplex Shopping Center 100.0% 0.0% 100.0% 0.0% ---------------------------------------------------------------- POWER CENTERS WEIGHTED AVERAGE 97.7% 2.3% 96.4% 3.6% ---------------------------------------------------------------- ---------------------------------------------------------------- WHOLLY OWNED PROPERTIES 96.9% 3.1% 94.3% 5.7% JOINT VENTURE PROPERTIES 98.4% 1.6% 97.6% 2.4% ---------------------------------------------------------------- PRI-MANAGED 96.9% 3.1% 94.3% 5.7% NON PRI-MANAGED 98.4% 1.6% 97.6% 2.4% ---------------------------------------------------------------- SAME PROPERTIES/EXISTING 97.7% 2.3% 96.4% 3.6% NEW N/A N/A N/A N/A REDEVELOPMENT PROPERTIES N/A N/A N/A N/A ----------------------------------------------------------------
PAGE 27 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] STRIP CENTERS (Includes Non-Anchor Owned Space)
Q204 ------------------------------------------- AVG BASE RENT AVG % RENT ADDITIONAL PSF (1) PSF (1) CHARGES PSF ------------------------------------------- Crest Plaza Shopping Center $ 15.51 $ - $ 3.96 Festival at Exton 16.81 - 3.95 The Commons at Magnolia 13.00 - 2.05 Rio Grande Mall 5.93 - 0.25 South Blanding Village 9.20 - 1.89 Springfield Park I & II 17.71 - 5.51 ------------------------------------------- STRIP CENTERS WEIGHTED AVERAGE $ 13.95 $ - $ 3.16 ------------------------------------------- ------------------------------------------- WHOLLY OWNED PROPERTIES $ 14.46 $ - $ 3.20 JOINT VENTURE PROPERTIES $ 12.10 $ - $ 3.00 ------------------------------------------- PRI-MANAGED $ 14.88 $ - $ 3.50 NON PRI-MANAGED $ 5.93 $ - $ 0.25 ------------------------------------------- SAME PROPERTIES/EXISTING $ 13.55 $ - $ 2.96 NEW $ 15.51 $ - $ 3.96 REDEVELOPMENT PROPERTIES $ - $ - $ - -------------------------------------------
% CHANGE ------------------------------------------- AVG BASE RENT AVG % RENT ADDITIONAL PSF PSF CHARGES PSF ------------------------------------------- Crest Plaza Shopping Center 2.0% N/A 14.9% Festival at Exton 3.2% N/A 1.0% The Commons at Magnolia 1.5% -100.0% 36.8% Rio Grande Mall 0.8% N/A 0.0% South Blanding Village 3.4% N/A -27.5% Springfield Park I & II 0.4% N/A -13.7% ------------------------------------------- STRIP CENTERS WEIGHTED AVERAGE 2.3% -100.0% 1.3% ------------------------------------------- ------------------------------------------- WHOLLY OWNED PROPERTIES 2.6% -100.0% 6.2% JOINT VENTURE PROPERTIES 0.5% N/A -13.2% ------------------------------------------- PRI-MANAGED 2.1% -100.0% 0.8% NON PRI-MANAGED 0.8% N/A 0.0% ------------------------------------------- SAME PROPERTIES/EXISTING 1.9% -100.0% -3.0% ------------------------------------------- NEW 2.0% N/A 14.9% REDEVELOPMENT PROPERTIES N/A N/A N/A -------------------------------------------
Q203 ------------------------------------------- AVG BASE RENT AVG % RENT ADDITIONAL PSF(1) PSF(1) CHARGES PSF ------------------------------------------- Crest Plaza Shopping Center $ 15.21 $ - $ 3.44 Festival at Exton 16.29 - 3.91 The Commons at Magnolia 12.81 0.03 1.50 Rio Grande Mall 5.89 - 0.25 South Blanding Village 8.90 - 2.61 Springfield Park I & II 17.64 - 6.38 ------------------------------------------- STRIP CENTERS WEIGHTED AVERAGE $ 13.63 $ 0.01 $ 3.12 ------------------------------------------- ------------------------------------------- WHOLLY OWNED PROPERTIES $ 14.10 $ 0.01 $ 3.02 JOINT VENTURE PROPERTIES $ 12.05 $ - $ 3.46 ------------------------------------------- PRI-MANAGED $ 14.58 $ 0.01 $ 3.47 NON PRI-MANAGED $ 5.89 $ - $ 0.25 ------------------------------------------- SAME PROPERTIES/EXISTING $ 13.30 $ 0.01 $ 3.05 NEW $ 15.21 $ - $ 3.44 REDEVELOPMENT PROPERTIES $ - $ - $ - -------------------------------------------
(1) Base rent is actual for Q204. Additional charges and % rent are projections for 2004.
Q204 ---------------------------------------------------------------- TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR % W/ANCHOR % (NON-ANCHOR) (NON-ANCHOR) LEASED AVAILABLE % LEASED % AVAILABLE ---------------------------------------------------------------- Crest Plaza Shopping Center 96.2% 3.8% 93.4% 6.6% Festival at Exton 95.5% 4.5% 92.3% 7.7% The Commons at Magnolia 97.6% 2.4% 95.2% 4.8% Rio Grande Mall 99.6% 0.4% 97.8% 2.2% South Blanding Village 99.1% 0.9% 96.9% 3.1% Springfield Park I & II 90.9% 9.1% 73.5% 26.5% ---------------------------------------------------------------- STRIP CENTERS WEIGHTED AVERAGE 96.5% 3.5% 91.4% 8.6% ---------------------------------------------------------------- ---------------------------------------------------------------- WHOLLY OWNED PROPERTIES 97.0% 3.0% 93.9% 6.1% JOINT VENTURE PROPERTIES 95.8% 4.2% 83.3% 16.7% ---------------------------------------------------------------- PRI-MANAGED 95.7% 4.3% 90.7% 9.3% NON PRI-MANAGED 99.6% 0.4% 97.8% 2.2% ---------------------------------------------------------------- SAME PROPERTIES/EXISTING 96.6% 3.4% 90.9% 9.1% NEW 96.2% 3.8% 93.4% 6.6% REDEVELOPMENT PROPERTIES 0.0% 0.0% 0.0% 0.0% ----------------------------------------------------------------
OCCUPANCY CHANGE IN % OCCUPANCY ---------------------------------------------------------------- TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR % W/ANCHOR % (NON-ANCHOR) (NON-ANCHOR) LEASED AVAILABLE % LEASED % AVAILABLE ---------------------------------------------------------------- Crest Plaza Shopping Center 11.5% -11.5% 19.9% -19.9% Festival at Exton 0.0% 0.0% 0.0% 0.0% The Commons at Magnolia 0.0% 0.0% -0.1% 0.1% Rio Grande Mall 0.0% 0.0% 0.0% 0.0% South Blanding Village 1.7% -1.7% 5.5% -5.5% Springfield Park I & II 0.0% 0.0% 0.0% 0.0% ---------------------------------------------------------------- STRIP CENTERS WEIGHTED AVERAGE 1.8% -1.8% 4.6% -4.6% ---------------------------------------------------------------- ---------------------------------------------------------------- WHOLLY OWNED PROPERTIES 3.0% -3.0% 6.0% -6.0% JOINT VENTURE PROPERTIES 0.0% 0.0% 0.0% 0.0% ---------------------------------------------------------------- PRI-MANAGED 2.4% -2.4% 5.0% -5.0% NON PRI-MANAGED 0.0% 0.0% 0.0% 0.0% ---------------------------------------------------------------- SAME PROPERTIES/EXISTING 0.3% -0.3% 0.7% -0.7% NEW 11.5% -11.5% 19.9% -19.9% REDEVELOPMENT PROPERTIES 0.0% 0.0% 0.0% 0.0% ----------------------------------------------------------------
Q203 ---------------------------------------------------------------- TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR % W/ANCHOR % (NON-ANCHOR) (NON-ANCHOR) LEASED AVAILABLE % LEASED % AVAILABLE ---------------------------------------------------------------- Crest Plaza Shopping Center 84.7% 15.3% 73.5% 26.5% Festival at Exton 95.5% 4.5% 92.3% 7.7% The Commons at Magnolia 97.6% 2.4% 95.3% 4.7% Rio Grande Mall 99.6% 0.4% 97.8% 2.2% South Blanding Village 97.4% 2.6% 91.4% 8.6% Springfield Park I & II 90.9% 9.1% 73.5% 26.5% ---------------------------------------------------------------- STRIP CENTERS WEIGHTED AVERAGE 94.7% 5.3% 86.8% 13.2% ---------------------------------------------------------------- ---------------------------------------------------------------- WHOLLY OWNED PROPERTIES 94.0% 6.0% 87.9% 12.1% JOINT VENTURE PROPERTIES 95.8% 4.2% 83.3% 16.7% ---------------------------------------------------------------- PRI-MANAGED 93.3% 6.7% 85.6% 14.4% NON PRI-MANAGED 99.6% 0.4% 97.8% 2.2% ---------------------------------------------------------------- SAME PROPERTIES/EXISTING 96.3% 3.7% 90.2% 9.8% NEW 84.7% 15.3% 73.5% 26.5% REDEVELOPMENT PROPERTIES 0.0% 0.0% 0.0% 0.0%
PAGE 28 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] RETAIL PORTFOLIO (Includes Non-Anchor Owned Space)
Q204 ------------------------------------------ AVG BASE AVG % RENT ADDITIONAL RENT PSF (1) PSF (1) CHARGES PSF (1) ------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE $ 22.36 $ 0.76 $ 8.59 POWER CENTERS WEIGHTED AVERAGE $ 15.39 $ 0.04 $ 3.16 STRIP CENTERS WEIGHTED AVERAGE $ 13.95 $ - $ 3.16 ------------------------------------------ ------------------------------------------ RETAIL PORTFOLIO WEIGHTED AVERAGE (2) $ 21.03 $ 0.62 $ 7.58 ------------------------------------------ ------------------------------------------ WHOLLY OWNED PROPERTIES (2) $ 21.61 $ 0.70 $ 8.02 JOINT VENTURE PROPERTIES $ 17.88 $ 0.22 $ 5.21 ------------------------------------------ PRI-MANAGED (2) $ 21.60 $ 0.70 $ 8.02 NON PRI-MANAGED $ 17.88 $ 0.22 $ 5.20 ------------------------------------------ SAME PROPERTIES/EXISTING $ 17.83 $ 0.33 $ 5.32 NEW $ 22.49 $ 0.76 $ 8.61 REDEVELOPMENT PROPERTIES $ 23.78 $ 1.34 $ 12.66 ------------------------------------------
% CHANGE ------------------------------------------ AVG BASE AVG % RENT ADDITIONAL RENT PSF (1) PSF (1) CHARGES PSF (1) ------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE -14.6% 15.8% -17.7% POWER CENTERS WEIGHTED AVERAGE 1.8% 9.3% 2.7% STRIP CENTERS WEIGHTED AVERAGE 2.3% -100.0% 1.3% ------------------------------------------ ------------------------------------------ RETAIL PORTFOLIO WEIGHTED AVERAGE (2) -5.2% 43.7% -3.1% ------------------------------------------ ------------------------------------------ WHOLLY OWNED PROPERTIES (2) -6.1% 39.1% -2.9% JOINT VENTURE PROPERTIES -14.0% -32.1% -26.7% ------------------------------------------ PRI-MANAGED (2) -9.9% 35.4% -11.2% NON PRI-MANAGED -0.6% -10.1% 3.4% ------------------------------------------ SAME PROPERTIES/EXISTING 0.5% -14.8% 4.0% NEW -22.3% 48.3% -27.9% REDEVELOPMENT PROPERTIES 3.4% 22.0% 20.1% ------------------------------------------
Q203 ------------------------------------------ AVG BASE AVG % RENT ADDITIONAL RENT PSF (1) PSF (1) CHARGES PSF (1) ------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE $ 25.49 $ 0.66 $ 10.01 POWER CENTERS WEIGHTED AVERAGE $ 15.12 $ 0.04 $ 3.08 STRIP CENTERS WEIGHTED AVERAGE $ 13.63 $ 0.01 $ 3.12 ------------------------------------------ ------------------------------------------ RETAIL PORTFOLIO WEIGHTED AVERAGE (2) $ 22.17 $ 0.43 $ 7.82 ------------------------------------------ ------------------------------------------ WHOLLY OWNED PROPERTIES (2) $ 23.01 $ 0.50 $ 8.26 JOINT VENTURE PROPERTIES $ 20.80 $ 0.32 $ 7.10 ------------------------------------------ PPRI-MANAGED (2) $ 23.99 $ 0.51 $ 9.03 NON PRI-MANAGED $ 17.98 $ 0.25 $ 5.03 ------------------------------------------ SAME PROPERTIES/EXISTING $ 17.74 $ 0.38 $ 5.12 NEW $ 28.93 $ 0.51 $ 11.95 REDEVELOPMENT PROPERTIES $ 22.99 $ 1.10 $ 10.55 ------------------------------------------
(1) Base rent is actual for Q204. Additional charges and % rent are projections for 2004. (2) Prince Georges Plaza is classified as Redevelopment Property and is not included in the weighted average.
Q204 ---------------------------------------------------------------- TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR % W/ANCHOR % (NON-ANCHOR) (NON-ANCHOR) LEASED AVAILABLE % LEASED % AVAILABLE ---------------------------------------------------------------- ENCLOSED MALLS WEIGHTED AVERAGE 90.2% 9.8% 85.6% 14.4% POWER CENTERS WEIGHTED AVERAGE 98.0% 2.0% 96.8% 3.2% STRIP CENTERS WEIGHTED AVERAGE 96.5% 3.5% 91.4% 8.6% ---------------------------------------------------------------- ---------------------------------------------------------------- RETAIL PORTFOLIO WEIGHTED AVERAGE (1) 91.3% 8.7% 87.3% 12.7% ---------------------------------------------------------------- ---------------------------------------------------------------- WHOLLY OWNED PROPERTIES (1) 90.7% 9.3% 86.4% 13.6% JOINT VENTURE PROPERTIES 95.7% 4.3% 92.8% 7.2% ---------------------------------------------------------------- PRI-MANAGED (1) 90.7% 9.3% 86.3% 13.7% NON PRI-MANAGED 95.9% 4.1% 93.3% 6.7% ---------------------------------------------------------------- SAME PROPERTIES/EXISTING 95.2% 4.8% 91.1% 8.9% NEW 89.8% 10.2% 85.8% 14.2% REDEVELOPMENT PROPERTIES 88.8% 11.2% 92.9% 7.1% ----------------------------------------------------------------
OCCUPANCY CHANGE IN % OCCUPANCY ---------------------------------------------------------------- TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR % W/ANCHOR % (NON-ANCHOR) (NON-ANCHOR) LEASED AVAILABLE % LEASED % AVAILABLE ---------------------------------------------------------------- ENCLOSED MALLS WEIGHTED AVERAGE 2.2% -2.2% -1.0% 1.0% POWER CENTERS WEIGHTED AVERAGE 0.3% -0.3% 0.5% -0.5% STRIP CENTERS WEIGHTED AVERAGE 1.8% -1.8% 4.6% -4.6% ---------------------------------------------------------------- ---------------------------------------------------------------- RETAIL PORTFOLIO WEIGHTED AVERAGE (1) 0.5% -0.5% -2.1% 2.1% ---------------------------------------------------------------- ---------------------------------------------------------------- WHOLLY OWNED PROPERTIES (1) 2.7% -2.7% -0.9% 0.9% JOINT VENTURE PROPERTIES -0.4% 0.4% -0.3% 0.3% ---------------------------------------------------------------- RI-MANAGED (1) 1.8% -1.8% -1.1% 1.1% NON PRI-MANAGED -0.7% 0.7% -1.1% 1.1% ---------------------------------------------------------------- SAME PROPERTIES/EXISTING 1.4% -1.4% 0.4% -0.4% NEW 3.8% -3.8% -2.0% 2.0% REDEVELOPMENT PROPERTIES 0.6% -0.6% 1.2% -1.2% ----------------------------------------------------------------
Q203 ---------------------------------------------------------------- TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR % W/ANCHOR % (NON-ANCHOR) (NON-ANCHOR) LEASED AVAILABLE % LEASED % AVAILABLE ---------------------------------------------------------------- ENCLOSED MALLS WEIGHTED AVERAGE 88.0% 12.0% 86.6% 13.4% POWER CENTERS WEIGHTED AVERAGE 97.7% 2.3% 96.4% 3.6% STRIP CENTERS WEIGHTED AVERAGE 94.7% 5.3% 86.8% 13.2% ---------------------------------------------------------------- ---------------------------------------------------------------- RETAIL PORTFOLIO WEIGHTED AVERAGE (1) 90.9% 9.1% 89.4% 10.6% ---------------------------------------------------------------- ---------------------------------------------------------------- WHOLLY OWNED PROPERTIES (1) 88.0% 12.0% 87.3% 12.7% JOINT VENTURE PROPERTIES 96.2% 3.8% 93.2% 6.8% ---------------------------------------------------------------- PRI-MANAGED (1) 88.9% 11.1% 87.5% 12.5% NON PRI-MANAGED 96.6% 3.4% 94.4% 5.6% ---------------------------------------------------------------- SAME PROPERTIES/EXISTING 93.8% 6.2% 90.6% 9.4% NEW 86.0% 14.0% 87.7% 12.3% REDEVELOPMENT PROPERTIES 88.2% 11.8% 91.7% 8.3% ----------------------------------------------------------------
(1) Prince Georges Plaza is classified as Redevelopment Property and is not included in the weighted average. * 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 29 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] PREIT SERVICES, LLC/PREIT-RUBIN INC. PREIT Services, LLC and PREIT-RUBIN Inc. are the Trust's arms for comprehensive development and management of retail and commercial properties. PREIT-RUBIN Inc. provides third party management for 16 properties representing approximately 4.2 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
---------------------------------------------------------------------------- JUNE 30, 2004 ---------------------------------------------------------------------------- RETAIL OFFICE/INDUSTRIAL TOTAL ---------------------------------------------------------------------------- # SQ FT # SQ FT # SQ FT ---------------------------------------------------------------------------- MANAGED PORTFOLIO PREIT-Owned (1) 47 29,501,868 4 254,791 51 29,756,659 Non-PREIT Owned (2) 11 2,770,188 3 757,238 14 3,527,426 ---------------------------------------------------------------------------- TOTAL 58 32,272,056 7 1,012,029 65 33,284,085 ---------------------------------------------------------------------------- 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 7 4,254,840 - - 7 4,254,840 Non-PREIT Owned - - - - - - ---------------------------------------------------------------------------- TOTAL 7 4,254,840 - - 7 4,254,840 ---------------------------------------------------------------------------- TOTAL PORTFOLIO PREIT-Owned 54 33,756,708 4 254,791 58 34,011,499 Non-PREIT Owned 12 3,273,904 4 876,720 16 4,150,624 ---------------------------------------------------------------------------- TOTAL 66 37,030,612 8 1,131,511 74 38,162,123 ----------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------- MARCH 31, 2004 ------------------------------------------------------------------------------------------------------------- RETAIL OFFICE/INDUSTRIAL TOTAL ------------------------------------------------------------------------------------------------------------- # SQ FT # SQ FT # SQ FT ------------------------------------------------------------------------------------------------------------- MANAGED PORTFOLIO PREIT-Owned (1) 47 29,151,021 4 254,791 51 29,405,812 Non-PREIT Owned (2) 12 3,455,442 3 757,238 15 4,212,680 ------------------------------------------------------------------------------------------------------------- TOTAL 59 32,606,463 7 1,012,029 66 33,618,492 ------------------------------------------------------------------------------------------------------------- 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 7 4,259,253 - - 7 4,259,253 Non-PREIT Owned - - - - - - ------------------------------------------------------------------------------------------------------------- TOTAL 7 4,259,253 - - 7 4,259,253 ------------------------------------------------------------------------------------------------------------- TOTAL PORTFOLIO PREIT-Owned 54 33,410,274 4 254,791 58 33,665,065 Non-PREIT Owned 13 3,959,158 4 876,720 17 4,835,878 ------------------------------------------------------------------------------------------------------------- TOTAL 67 37,369,432 8 1,131,511 75 38,500,943 -------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------- NET GAIN (LOSS) IN CONTRACTS --------------------------------------------------------------------------------------------------------------- RETAIL OFFICE/INDUSTRIAL TOTAL --------------------------------------------------------------------------------------------------------------- # SQ FT # SQ FT # SQ FT --------------------------------------------------------------------------------------------------------------- MANAGED PORTFOLIO PREIT-Owned (1) - 350,847 - - - 350,847 Non-PREIT Owned (2) (1) (685,254) - - (1) (685,254) --------------------------------------------------------------------------------------------------------------- TOTAL (1) (334,407) - - (1) (334,407) --------------------------------------------------------------------------------------------------------------- LEASED PORTFOLIO PREIT-Owned - - - - - - Non-PREIT Owned - - - - - - --------------------------------------------------------------------------------------------------------------- TOTAL - - - - - - --------------------------------------------------------------------------------------------------------------- ASSET MANAGED PORTFOLIO PREIT-Owned - (4,413) - - - (4,413) Non-PREIT Owned - - - - - - --------------------------------------------------------------------------------------------------------------- TOTAL - (4,413) - - - (4,413) --------------------------------------------------------------------------------------------------------------- TOTAL PORTFOLIO PREIT-Owned Non-PREIT Owned - 346,434 - - - 346,434 (1) (685,254) - - (1) (685,254) --------------------------------------------------------------------------------------------------------------- TOTAL (1) (338,820) - - (1) (338,820) ---------------------------------------------------------------------------------------------------------------
(1) The increase in PREIT Owned GLA is a result of the acquisition of The Gallery at Market East II, Philadelphia, PA. (2) The decrease in Non-PREIT Owned GLA is a result of the discontinuance of the management of Swansea Mall, Swansea, MA. PAGE 30 PENNSYLVANIA REIT FLASH REPORT (JUNE 30, 2004) ---------------------------- QUARTERLY COMPARISON -------------------- FINANCIAL STATEMENT [GRAPHIC OMITTED] [GRAPHIC OMITTED]
------------------------------------------------------------------------------------------------------------------------------------ Q2 04 (3 MONTHS ENDED 6/30/04) ------------------------------------------------------------------------------------------------------------------------------------ CORPORATE/OTHER RETAIL PROPERTIES TOTAL % CHANGE ------------------------------------------------------------------------------------------------------------------------------------ Real Estate Revenues: Same Store $21,008,465 $96,831 $21,105,296 4.0% New 84,104,791 - 84,104,791 N/A Redevelopment 3,475,966 - 3,475,966 N/A Discontinued Operations - - - ------------------------------------------------------------------------------------------------------------------------------------ Total Real Estate Revenues 108,589,222 96,831 108,686,053 110.8% ------------------------------------------------------------------------------------------------------------------------------------ Operating Expenses (includes minority interest in properties): Same Store 5,674,065 12,275 5,686,340 3.1% New 34,108,456 - 34,108,456 N/A Redevelopment 997,778 - 997,778 N/A Discontinued Operations - - -100.0% ------------------------------------------------------------------------------------------------------------------------------------ Total Operating Expenses 40,780,299 12,275 40,792,574 114.6% ------------------------------------------------------------------------------------------------------------------------------------ NOI: Same Store 15,334,400 84,556 15,418,956 4.3% New 49,996,335 - 49,996,335 N/A Redevelopment 2,478,188 - 2,478,188 N/A Discontinued Operations - - - -100.0% ------------------------------------------------------------------------------------------------------------------------------------ NOI 67,808,923 84,556 67,893,479 108.6% ------------------------------------------------------------------------------------------------------------------------------------ OTHER INCOME (EXPENSES): Management Company Revenue - 1,736,239 1,736,239 -52.5% Interest Income - 432,403 432,403 123.9% General & Administrative Corporate Payroll - (6,204,872) (6,204,872) 57.2% Other G&A Expenses - (5,572,969) (5,572,969) 56.1% ------------------------------------------------------------------------------------------------------------------------------------ EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 67,808,923 (9,524,643) 58,284,280 101.8% ------------------------------------------------------------------------------------------------------------------------------------ Interest Expense (19,232,959) (1,576,215) (20,809,174) 48.9% Depreciation and Amortization (24,796,584) (12,540) (24,809,124) 198.2% Gain(loss) on Sale of Interests in RE - - N/A DISCONTINUED OPERATIONS Income from Disposed Real Estate - - - N/A Minority Interest of O.P. Unitholders - (221,615) (221,615) N/A Gain(loss) on Disposition of Discontinued Operations - - N/A ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISCONTINUED OPERATIONS - (221,615) (221,615) N/A ------------------------------------------------------------------------------------------------------------------------------------ Extraordinary item(Loss on early extinguishment of debt) - - - N/A Minority Interest of O.P. Unit Holders - (1,052,624) (1,052,624) 27.8% ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME 23,779,380 (12,387,637) 11,391,743 -92.1% ------------------------------------------------------------------------------------------------------------------------------------ Gain on Sale of Real Estate - - - N/A Depreciation and Amor. of Real Estate 24,796,584 (52,460) 24,744,124 197.4% Dividends on preferred shares (3,403,125) (3,403,125) N/A FFO Adjustments - 1,274,239 1,274,239 -92.2% ------------------------------------------------------------------------------------------------------------------------------------ FFO 48,575,964 (14,568,983) 34,006,981 129.1% ------------------------------------------------------------------------------------------------------------------------------------ Adj. Straight Lining of Base Rents (1,218,075) - (1,218,075) 99.0% Recurring Capital Expenditures (1,449,365) - (1,449,365) 90.3% Tenant allowances (950,906) (950,906) N/A Amortization of debt premium (4,848,163) (4,848,163) Amortization of above-and below market lease intangibles 202,727 202,727 N/A ------------------------------------------------------------------------------------------------------------------------------------ FAD $40,312,182 (14,568,983) $25,743,199 107.0% ------------------------------------------------------------------------------------------------------------------------------------ Total Dividends $ 21,612,938 131.1% Share Price (at close) $34.25 14.4% Weighted Average Number of Shares 35,516,772 113.8% WA number of Shares and O.P. Units 39,545,664 112.4% ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME PER SHARE (BASIC) $0.22 -97.4% FFO/SHARE AND O.P. UNITS $0.86 7.8% FAD/SHARE AND O.P. UNITS $0.65 -2.6% DIVIDEND/SHARE AND O.P. UNITS $0.54 5.9% ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ Q2 03 (3 MONTHS ENDED 6/30/03) ------------------------------------------------------------------------------------------------------------------------------------ CORPORATE/OTHER RETAIL MULTIFAMILY PROPERTIES TOTAL ------------------------------------------------------------------------------------------------------------------------------------ Real Estate Revenues: Same Store $20,215,119 $0 $83,421 $ 20,298,540 New 17,591,232 - - 17,591,232 Redevelopment 3,030,522 - - 3,030,522 Discontinued Operations - 10,640,834 - 10,640,834 ------------------------------------------------------------------------------------------------------------------------------------ Total Real Estate Revenues 40,836,873 10,640,834 83,421 51,561,128 ------------------------------------------------------------------------------------------------------------------------------------ Operating Expenses (includes minority interest in properties): Same Store 5,512,208 - 4,695 5,516,903 New 7,232,724 - - 7,232,724 Redevelopment 995,363 - - 995,363 Discontinued Operations - 5,263,362 5,263,362 ------------------------------------------------------------------------------------------------------------------------------------ Total Operating Expenses 13,740,295 5,263,362 4,695 19,008,352 ------------------------------------------------------------------------------------------------------------------------------------ NOI: Same Store 14,702,911 - 78,726 14,781,637 New 10,358,508 - - 10,358,508 Redevelopment 2,035,159 - - 2,035,159 Discontinued Operations - 5,377,472 5,377,472 ------------------------------------------------------------------------------------------------------------------------------------ NOI 27,096,578 5,377,472 78,726 32,552,776 ------------------------------------------------------------------------------------------------------------------------------------ OTHER INCOME (EXPENSES): Management Company Revenue - - 3,654,460 3,654,460 Interest Income - - 193,127 193,127 General & Administrative Corporate Payroll - - (3,948,117) (3,948,117) Other G&A Expenses - - (3,569,291) (3,569,291) ------------------------------------------------------------------------------------------------------------------------------------ EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 27,096,578 5,377,472 (3,591,095) 28,882,955 ------------------------------------------------------------------------------------------------------------------------------------ Interest Expense (12,088,601) (1,886,514) - (13,975,115) Depreciation and Amortization (8,306,203) - (12,915) (8,319,118) Gain(loss) on Sale of Interests in RE (79,800) 4,401,603 - 4,321,803 DISCONTINUED OPERATIONS Income from Disposed Real Estate - - - - Minority Interest of O.P. Unitholders - - (15,649,831) (15,649,831) Gain(loss) on Disposition of Discontinued Operations - 150,200,805 - 150,200,805 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISCONTINUED OPERATIONS - 150,200,805 (15,649,831) 134,550,974 ------------------------------------------------------------------------------------------------------------------------------------ Extraordinary item(Loss on early extinguishment of debt) - - - Minority Interest of O.P. Unit Holders - - (823,758) (823,758) ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME 6,621,974 158,093,366 (20,077,599) 144,637,741 ------------------------------------------------------------------------------------------------------------------------------------ Gain on Sale of Real Estate 79,800 (154,602,408) - (154,522,608) Depreciation and Amor. of Real Estate 8,306,203 - 12,915 8,319,118 Dividends on preferred shares FFO Adjustments - - 16,408,589 16,408,589 ------------------------------------------------------------------------------------------------------------------------------------ FFO 15,007,977 3,490,958 (3,656,095) 14,842,840 ------------------------------------------------------------------------------------------------------------------------------------ Adj. Straight Lining of Base Rents (612,136) - - (612,136) Recurring Capital Expenditures (86,078) (675,455) - (761,533) Tenant allowances (44,568) (44,568) Amortization of debt premium (1,117,767) (1,117,767) Amortization of above-and below market lease intangibles 130,174 - - 130,174 ------------------------------------------------------------------------------------------------------------------------------------ FAD $13,277,602 $2,815,503 (3,656,095) $ 12,437,010 ------------------------------------------------------------------------------------------------------------------------------------ Total Dividends $ 9,352,573 Share Price (at close) $29.95 Weighted Average Number of Shares 16,615,576 WA number of Shares and O.P. Units 18,614,284 ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME PER SHARE (BASIC) $8.70 FFO/SHARE AND O.P. UNITS $0.80 FAD/SHARE AND O.P. UNITS $0.67 DIVIDEND/SHARE AND O.P. UNITS $0.51 ------------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
------------------------------------------------------------------------------------------------------------------------------------ Q2 04 ------------------------------------------------------------------------------------------------------------------------------------ CORPORATE/OTHER RETAIL PROPERTIES TOTAL % CHANGE ------------------------------------------------------------------------------------------------------------------------------------ Investment in Real Estate, at cost $2,593,918,861 $30,998,858 $2,624,917,719 111.8% Accumulated Depreciation (147,408,428) (2,101,851) (149,510,279) 35.9% Advances to Partnership and JVs - - - -100.0% Other Assets 278,462,166 57,541,799 336,003,965 146.0% ------------------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $2,724,972,599 $86,438,806 $2,811,411,405 121.9% ------------------------------------------------------------------------------------------------------------------------------------ Mortgage Notes $1,376,148,003 $ - $1,376,148,003 96.9% Line of Credit - 219,000,000 219,000,000 85.8% Acquisition Term Loan & Unsecured Line of Credit - - - N/A Other Liabilities 48,303,528 30,769,062 79,072,590 81.7% ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES $1,424,451,531 $249,769,062 $1,674,220,593 90.1% ------------------------------------------------------------------------------------------------------------------------------------ Minority Interest $4,247,705 $129,841,319 $134,089,024 116.9% Total Shareholders Equity - 1,003,101,788 1,003,101,788 209.0% ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES AND SHAREHOLDER EQUITY $1,428,699,236 $1,382,712,169 $2,811,411,405 121.9% ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ Q2 03 ------------------------------------------------------------------------------------------------------------------------------------ CORPORATE/OTHER RETAIL MULTIFAMILY PROPERTIES TOTAL ------------------------------------------------------------------------------------------------------------------------------------ Investment in Real Estate, at cost $1,151,324,700 $72,410,503 $15,664,644 $1,239,399,847 Accumulated Depreciation (86,614,873) (21,379,445) (2,051,443) (110,045,761) Advances to Partnership and JVs - - 1,200,000 1,200,000 Other Assets 102,071,918 2,620,458 31,877,834 136,570,210 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $1,166,781,745 $53,651,516 $46,691,035 $1,267,124,296 ------------------------------------------------------------------------------------------------------------------------------------ Mortgage Notes $661,629,178 $37,335,540 $ - $698,964,718 Line of Credit 87,553,496 - 30,346,504 117,900,000 Acquisition Term Loan & Unsecured Line of Credit 20,249,935 - - 20,249,935 Other Liabilities 24,849,397 1,299,939 17,373,054 43,522,390 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES $794,282,006 $38,635,479 $47,719,558 $880,637,043 ------------------------------------------------------------------------------------------------------------------------------------ Minority Interest $5,680,717 - $56,147,376 $61,828,093 Total Shareholders Equity - - 324,659,160 324,659,160 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES AND SHAREHOLDER EQUITY $799,962,723 $38,635,479 $428,526,094 $1,267,124,296 ------------------------------------------------------------------------------------------------------------------------------------
RATIOS
------------------------------------------------------------------------------------------------------------------------------------ Q2 04 Change Q2 03 ------------------------------------------------------------------------------------------------------------------------------------ NOI/Investment in Real Estate 2.6% 0.0% 2.6% Total Dividends/Total FFO 63.6% 0.5% 63.0% Dividends/FFO per share 62.8% -1.2% 64.0% ------------------------------------------------------------------------------------------------------------------------------------
NOTE: RECONCILIATION TO GAAP IS ON PAGES 32 TO 35. PAGE 31 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] BALANCE SHEET-RECONCILIATION TO GAAP (Wholly Owned vs. JVs)
------------------------------------------------------------------- JUNE 30, 2004 ------------------------------------------------------------------- COMBINED ADJUSTMENTS TO SUBTOTAL TOTAL (1) EQUITY METHOD ------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties $ 2,593,918,861 $ (136,339,792) $ 2,457,579,069 Multifamily Properties - - - Industrial Properties 2,504,211 - 2,504,211 Lend Held for Development 9,469,893 - 9,469,893 Construction In Progress 19,024,754 (1,505,540) 17,519,214 ------------------------------------------------------------------- TOTAL INVESTMENTS IN REAL ESTATE 2,624,917,719 (137,845,332) 2,487,072,387 Accumulated Depreciation (149,510,279) 32,847,127 (116,663,152) ------------------------------------------------------------------- Net Real Estate 2,475,407,440 (104,998,205) 2,370,409,235 ------------------------------------------------------------------- Investment in and advances to Partnerships and JVs - 31,622,774 31,622,774 ------------------------------------------------------------------- 2,475,407,440 (73,375,431) 2,402,032,009 ------------------------------------------------------------------- Other Assets: Cash and Cash Equivalents 32,002,089 (5,848,731) 26,153,358 Rents and Other Receivables 31,451,428 (7,857,715) 23,593,713 Assets held for sale (2) 37,190,718 - 37,190,718 Intangible Assets (3) 171,119,121 - 171,119,121 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 64,240,609 (10,795,530) 53,445,079 ------------------------------------------------------------------- TOTAL OTHER ASSETS 336,003,965 (24,501,976) 311,501,989 ------------------------------------------------------------------- TOTAL ASSETS 2,811,411,405 (97,877,407) 2,713,533,998 ------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 1,310,372,560 (108,594,598) 1,201,777,962 Mortgage Debt Premium (4) 65,775,443 - 65,775,443 Bank Loans Payable 219,000,000 - 219,000,000 Acquisition Term Loan & Unsecured Line of Credit - - - Assets held for sale 4,261,351 - 4,261,351 Other Liabilities (5) 74,811,239 10,717,191 85,528,430 ------------------------------------------------------------------- TOTAL LIABILITIES 1,674,220,593 (97,877,407) 1,576,343,186 ------------------------------------------------------------------- ------------------------------------------------------------------- Minority Interest 134,089,024 - 134,089,024 ------------------------------------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par 35,938,305 - 35,938,305 Preferred Shares $0.01 Par 24,750 - 24,750 Capital Contributed in Excess of Par 887,921,188 - 887,921,188 Restricted Stock (9,618,821) - (9,618,821) Other Comprehensive Income (1,886,164) - (1,886,164) Retained Earnings (Distributions in Excess of Net Income) 90,722,530 - 90,722,530 ------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY 1,003,101,788 - 1,003,101,788 ------------------------------------------------------------------- ------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,811,411,405 $ (97,877,407) $ 2,713,533,998 -------------------------------------------------------------------
---------------------------------------- JUNE 30, 2004 ---------------------------------------- ASSETS HELD TOTAL FOR SALE ---------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties $ (96,332,783) $ 2,361,246,286 Multifamily Properties - - Industrial Properties - 2,504,211 Lend Held for Development - 9,469,893 Construction In Progress - 17,519,214 ---------------------------------------- TOTAL INVESTMENTS IN REAL ESTATE (96,332,783) 2,390,739,604 Accumulated Depreciation - (116,663,152) ---------------------------------------- Net Real Estate (96,332,783) 2,274,076,452 ---------------------------------------- Investment in and advances to Partnerships and JVs - 31,622,774 ---------------------------------------- (96,332,783) 2,305,699,226 ---------------------------------------- Other Assets: Cash and Cash Equivalents 26,153,358 Rents and Other Receivables - 23,593,713 Assets held for sale (2) 96,332,783 133,523,501 Intangible Assets (3) - 171,119,121 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 53,445,079 ---------------------------------------- TOTAL OTHER ASSETS 96,332,783 407,834,772 ---------------------------------------- TOTAL ASSETS - 2,713,533,998 ---------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable (59,780,197) 1,141,997,765 Mortgage Debt Premium (4) (3,882,426) 61,893,017 Bank Loans Payable - 219,000,000 Acquisition Term Loan & Unsecured Line of Credit - - Assets held for sale 63,662,623 67,923,974 Other Liabilities (5) 85,528,430 ---------------------------------------- TOTAL LIABILITIES - 1,576,343,186 ---------------------------------------- ---------------------------------------- Minority Interest - 134,089,024 ---------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - 35,938,305 Preferred Shares $0.01 Par - 24,750 Capital Contributed in Excess of Par - 887,921,188 Restricted Stock - (9,618,821) Other Comprehensive Income - (1,886,164) Retained Earnings (Distributions in Excess of Net Income) - 90,722,530 ---------------------------------------- TOTAL SHAREHOLDERS' EQUITY - 1,003,101,788 ---------------------------------------- ---------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ - $ 2,713,533,998 ----------------------------------------
------------------------------------------------------------------- DECEMBER 31, 2003 ------------------------------------------------------------------- COMBINED ADJUSTMENTS TO SUBTOTAL TOTAL (1) EQUITY METHOD ------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties $ 2,515,861,018 $ (133,107,107) $2,382,753,911 Multifamily Properties - - - Industrial Properties 2,504,211 - 2,504,211 Lend Held for Development Construction In Progress 21,736,991 (1,506,178) 20,230,813 ------------------------------------------------------------------- TOTAL INVESTMENTS IN REAL ESTATE 2,540,102,220 (134,613,285) 2,405,488,935 Accumulated Depreciation (110,068,351) 31,652,085 (78,416,266) ------------------------------------------------------------------- Net Real Estate 2,430,033,869 (102,961,200) 2,327,072,669 ------------------------------------------------------------------- Investment in and advances to Partnerships and JVs - 29,166,089 29,166,089 ------------------------------------------------------------------- 2,430,033,869 (73,795,111) 2,356,238,758 ------------------------------------------------------------------- Other Assets: Cash and Cash Equivalents 46,883,041 (3,905,956) 42,977,085 Rents and Other Receivables 35,665,968 (7,991,132) 27,674,836 Assets held for sale (2) 37,686,662 - 37,686,662 Intangible Assets (3) 181,544,375 - 181,544,375 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 67,358,715 (11,942,821) 55,415,894 ------------------------------------------------------------------- TOTAL OTHER ASSETS 369,138,761 (23,839,909) 345,298,852 ------------------------------------------------------------------- TOTAL ASSETS 2,799,172,630 (97,635,020) 2,701,537,610 ------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 1,320,774,295 (109,581,659) 1,211,192,636 Mortgage Debt Premium (4) 75,488,243 75,488,243 Bank Loans Payable 170,000,000 - 170,000,000 Acquisition Term Loan & Unsecured Line of Credit - - - Assets held for sale 5,840,385 - 5,840,385 Other Liabilities (5) 90,784,568 11,946,639 102,731,207 ------------------------------------------------------------------- TOTAL LIABILITIES 1,662,887,491 (97,635,020) 1,565,252,471 ------------------------------------------------------------------- ------------------------------------------------------------------- Minority Interest 112,651,526 - 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 $2,799,172,630 $ (97,635,020) $2,701,537,610 -------------------------------------------------------------------
---------------------------------------- DECEMBER 31, 2003 ---------------------------------------- ASSETS HELD TOTAL FOR SALE ---------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties $(118,887,475) $ 2,263,866,436 Multifamily Properties - Industrial Properties - 2,504,211 Lend Held for Development Construction In Progress - 20,230,813 ---------------------------------------- TOTAL INVESTMENTS IN REAL ESTATE (118,887,475) 2,286,601,460 Accumulated Depreciation (78,416,266) ---------------------------------------- Net Real Estate (118,887,475) 2,208,185,194 ---------------------------------------- Investment in and advances to Partnerships and JVs - 29,166,089 ---------------------------------------- (118,887,475) 2,237,351,283 ---------------------------------------- Other Assets: Cash and Cash Equivalents - 42,977,085 Rents and Other Receivables - 27,674,836 Assets held for sale (2) 118,887,475 156,574,137 Intangible Assets (3) - 181,544,375 Deferred Costs, Prepaid Taxes & Exp. & Other Assets - 55,415,894 ---------------------------------------- TOTAL OTHER ASSETS 118,887,475 464,186,327 ---------------------------------------- TOTAL ASSETS - 2,701,537,610 ---------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable (61,138,707) 1,150,053,929 Mortgage Debt Premium (4) (4,361,443) 71,126,800 Bank Loans Payable - 170,000,000 Acquisition Term Loan & Unsecured Line of Credit - - Assets held for sale 65,500,150 71,340,535 Other Liabilities (5) - 102,731,207 ---------------------------------------- TOTAL LIABILITIES - 1,565,252,471 ---------------------------------------- ---------------------------------------- Minority Interest - 112,651,526 ---------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - 35,544,280 Preferred Shares $0.01 Par - 24,750 Capital Contributed in Excess of Par - 877,444,615 Restricted Stock - (3,195,777) Other Comprehensive Income - (2,005,840) Retained Earnings (Distributions in Excess of Net Income) - 115,821,585 ---------------------------------------- TOTAL SHAREHOLDERS' EQUITY - 1,023,633,613 ---------------------------------------- ---------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ - $ 2,701,537,610 ----------------------------------------
------------------------------------------------------------------- JUNE 30, 2003 ------------------------------------------------------------------- COMBINED ADJUSTMENTS TO SUBTOTAL TOTAL (1) EQUITY METHOD ------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties $ 1,151,324,700 $ (197,499,583) $ 953,825,117 Multifamily Properties 72,410,503 (5,947,802) 66,462,701 Industrial Properties 2,504,211 - 2,504,211 Lend Held for Development Construction In Progress 13,160,433 (1,559,524) 11,600,909 ------------------------------------------------------------------- TOTAL INVESTMENTS IN REAL ESTATE 1,239,399,847 (205,006,909) 1,034,392,938 Accumulated Depreciation (110,045,761) 43,479,796 (66,565,965) ------------------------------------------------------------------- Net Real Estate 1,129,354,086 (161,527,113) 967,826,973 ------------------------------------------------------------------- Investment in and advances to Partnerships and JVs 1,200,000 28,494,542 29,694,542 ------------------------------------------------------------------- 1,130,554,086 (133,032,571) 997,521,515 ------------------------------------------------------------------- Other Assets: Cash and Cash Equivalents 15,035,033 (6,323,226) 8,711,807 Rents and Other Receivables 22,922,514 (9,022,617) 13,899,897 Assets held for sale (2) 1,431,668 44,036 1,475,704 Intangible Assets (3) 45,494,357 - 45,494,357 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 51,686,638 (12,776,852) 38,909,786 ------------------------------------------------------------------- TOTAL OTHER ASSETS 136,570,210 (28,078,659) 108,491,551 ------------------------------------------------------------------- TOTAL ASSETS 1,267,124,296 (161,111,230) 1,106,013,066 ------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Mortgage Notes Payable 679,352,244 (155,488,042) 523,864,202 Mortgage Debt Premium (4) 19,612,474 - 19,612,474 Bank Loans Payable 117,900,000 - 117,900,000 Acquisition Term Loan & Unsecured Line of Credit 20,249,935 - 20,249,935 Assets held for sale 1,299,939 (179,955) 1,119,984 Other Liabilities (5) 42,222,451 (5,443,233) 36,779,218 ------------------------------------------------------------------- TOTAL LIABILITIES 880,637,043 (161,111,230) 719,525,813 ------------------------------------------------------------------- ------------------------------------------------------------------- Minority Interest 61,828,093 - 61,828,093 ------------------------------------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par 16,837,304 - 16,837,304 Preferred Shares $0.01 Par Capital Contributed in Excess of Par 220,081,547 - 220,081,547 Restricted Stock (3,121,496) - (3,121,496) Other Comprehensive Income (3,238,850) - (3,238,850) Retained Earnings (Distributions in Excess of Net Income) 94,100,655 - 94,100,655 ------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY 324,659,160 - 324,659,160 ------------------------------------------------------------------- ------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,267,124,296 $ (161,111,230) $ 1,106,013,066 -------------------------------------------------------------------
---------------------------------------- JUNE 30, 2003 ---------------------------------------- ASSETS HELD TOTAL FOR SALE ---------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties $ - $ 953,825,117 Multifamily Properties (66,462,701) - Industrial Properties - 2,504,211 Lend Held for Development Construction In Progress - 11,600,909 ---------------------------------------- TOTAL INVESTMENTS IN REAL ESTATE (66,462,701) 967,930,237 Accumulated Depreciation 17,578,164 (48,987,801) ---------------------------------------- Net Real Estate (48,884,537) 918,942,436 ---------------------------------------- Investment in and advances to Partnerships and JVs - 29,694,542 ---------------------------------------- (48,884,537) 948,636,978 ---------------------------------------- Other Assets: Cash and Cash Equivalents - 8,711,807 Rents and Other Receivables - 13,899,897 Assets held for sale (2) 48,884,537 50,360,241 Intangible Assets (3) - 45,494,357 Deferred Costs, Prepaid Taxes & Exp. & Other Assets - 38,909,786 ---------------------------------------- TOTAL OTHER ASSETS 48,884,537 157,376,088 ---------------------------------------- TOTAL ASSETS - 1,106,013,066 ---------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable (33,888,117) 489,976,085 Mortgage Debt Premium (4) - 19,612,474 Bank Loans Payable - 117,900,000 Acquisition Term Loan & Unsecured Line of Credit - 20,249,935 Assets held for sale 33,888,117 35,008,101 Other Liabilities (5) - 36,779,218 ---------------------------------------- TOTAL LIABILITIES - 719,525,813 ---------------------------------------- ---------------------------------------- Minority Interest - 61,828,093 ---------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - 16,837,304 Preferred Shares $0.01 Par Capital Contributed in Excess of Par - 220,081,547 Restricted Stock - (3,121,496) Other Comprehensive Income - (3,238,850) Retained Earnings (Distributions in Excess of Net Income) - 94,100,655 ---------------------------------------- TOTAL SHAREHOLDERS' EQUITY - 324,659,160 ---------------------------------------- ---------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ - $1,106,013,066 ----------------------------------------
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Company'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) During the first quarter of 2004, PREIT reallocated approximately $20 million of the amount originally allocated to the non-core properties to the other properties acquired in the Crown merger. (3) 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. (4) Represents premium that is recorded in connection with debt assumed when a property is purchased. The debt is marked to market at the acquisition date and the premium is amortized through interest expense over the remaining term of the debt. (5) For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses and Other Liabilities including Deficit JV Investments. PAGE 32 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMITTED] INCOME STATEMENT-RECONCILIATION TO GAAP (1) QUARTERLY COMPARISON (Wholly Owned vs. JV's)
Q2 04 (3 MONTHS ENDED 6/30/04) ------------------------------------------------------------------ COMBINED ADJUSTMENTS TO SUBTOTAL TOTAL(2) EQUITY METHOD ------------------------------------------------------------------ REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ 70,940,473 $ (5,295,006) $ 65,645,467 Straight-Lining of Base Rents 1,218,075 (11,480) 1,206,595 Percentage Rents 1,295,602 102,372 1,397,974 Expense Reimbursables 31,793,289 (1,716,739) 30,076,550 Lease Termination 983,379 - 983,379 Other Real Estate Revenues 2,455,235 (254,498) 2,200,737 ------------------------------------------------------------------ TOTAL REVENUES 108,686,053 (7,175,351) 101,510,702 ------------------------------------------------------------------ REAL ESTATE OPERATING EXPENSES Operating and Maintenance 30,069,288 (1,700,315) 28,368,973 Real Estate Taxes 10,503,902 (513,124) 9,990,778 Minority Interest in properties 219,384 - 219,384 ------------------------------------------------------------------ TOTAL EXPENSES 40,792,574 (2,213,439) 38,579,135 ------------------------------------------------------------------ ------------------------------------------------------------------ NET OPERATING INCOME 67,893,479 (4,961,912) 62,931,567 ------------------------------------------------------------------ OTHER INCOME (EXPENSES) Management Company Revenue 1,736,239 - 1,736,239 Interest Income 432,403 - 432,403 GENERAL & ADMINISTRATIVE: Corporate Payroll (6,204,872) - (6,204,872) Other G&A Expenses (5,572,969) - (5,572,969) ------------------------------------------------------------------ EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 58,284,280 (4,961,912) 53,322,368 ------------------------------------------------------------------ Interest Expense (1) (20,809,174) 2,171,992 (18,637,182) Depreciation & Amortization (24,809,124) 1,141,390 (23,667,734) ------------------------------------------------------------------ TOTAL OTHER INCOME (EXPENSES) (45,618,298) 3,313,382 (42,304,916) ------------------------------------------------------------------ EQUITY IN INCOME OF PARTNERSHIPS AND JVS 1,648,530 1,648,530 ------------------------------------------------------------------ Gains (losses) on sales of interests in Real Estate - - - ------------------------------------------------------------------ Income before Minority Interest 12,665,982 - 12,665,982 ------------------------------------------------------------------ Minority Interest of O.P. Unitholders (1,052,624) - (1,052,624) ------------------------------------------------------------------ Income from Operations 11,613,358 - 11,613,358 ------------------------------------------------------------------ DISCONTINUED OPERATIONS: Income from Discontinued Operations - - - Equity in Income of partnerships and JVs Minority interest in properties Minority Interest of O.P. Unitholders (221,615) - (221,615) Gain (losses) on Disposition of Discontinued Operations - - - ------------------------------------------------------------------ TOTAL DISCONTINUED OPERATIONS (221,615) - (221,615) ------------------------------------------------------------------ Extraordinary item(Loss on early extinguishment of debt) - - - ------------------------------------------------------------------ NET INCOME $ 11,391,743 $ - $ 11,391,743 ------------------------------------------------------------------
Q2 04 (3 MONTHS ENDED 6/30/04) ---------------------------------------- ------------------ ASSETS HELD TOTAL % FOR SALE TOTAL CHANGE ---------------------------------------- ------------------ REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ (4,754,955) $ 60,890,512 189.8% Straight-Lining of Base Rents (67,660) 1,138,935 104.1% Percentage Rents (86,681) 1,311,293 538.6% Expense Reimbursables (2,070,124) 28,006,426 213.5% Lease Termination (22,410) 960,969 N/A Other Real Estate Revenues (131,461) 2,069,276 163.0% ---------------------------------------- ------------------ TOTAL REVENUES (7,133,291) 94,377,411 199.7% ---------------------------------------- ------------------ REAL ESTATE OPERATING EXPENSES Operating and Maintenance (3,395,210) 24,973,763 243.5% Real Estate Taxes (651,117) 9,339,661 220.3% Minority Interest in properties (6,654) 212,730 2.7% ---------------------------------------- ------------------ TOTAL EXPENSES (4,052,981) 34,526,154 232.2% ---------------------------------------- ------------------ ---------------------------------------- ------------------ NET OPERATING INCOME (3,080,310) 59,851,257 183.7% ---------------------------------------- ------------------ OTHER INCOME (EXPENSES) Management Company Revenue 1,736,239 -52.5% Interest Income 432,403 123.9% GENERAL & ADMINISTRATIVE: Corporate Payroll (6,204,872) 57.2% Other G&A Expenses (5,572,969) 56.1% ---------------------------------------- ------------------ EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION (3,080,310) 50,242,058 188.3% ---------------------------------------- ------------------ Interest Expense (1) 880,033 (17,757,149) 95.2% Depreciation & Amortization - (23,667,734) 238.4% ---------------------------------------- ------------------ TOTAL OTHER INCOME (EXPENSES) 880,033 (41,424,883) 157.4% ---------------------------------------- ------------------ EQUITY IN INCOME OF PARTNERSHIPS AND JVS 1,648,530 ---------------------------------------- ------------------ Gains (losses) on sales of interests in Real Estate - - N/A ---------------------------------------- ------------------ Income before Minority Interest (2,200,277) 10,465,705 36.2% ---------------------------------------- ------------------ Minority Interest of O.P. Unitholders - (1,052,624) 27.8% ---------------------------------------- ------------------ Income from Operations (2,200,277) 9,413,081 37.2% ---------------------------------------- ------------------ DISCONTINUED OPERATIONS: Income from Discontinued Operations 2,206,931 2,206,931 -31.6% Equity in Income of partnerships and JVs - Minority interest in properties (6,654) (6,654) Minority Interest of O.P. Unitholders (221,615) N/A Gain (losses) on Disposition of Discontinued Operations - N/A ---------------------------------------- ------------------ TOTAL DISCONTINUED OPERATIONS 2,200,277 1,978,662 N/A ---------------------------------------- ------------------ Extraordinary item(Loss on early extinguishment of debt) - - N/A ---------------------------------------- ------------------ NET INCOME $ - $ 11,391,743 -92.1% ---------------------------------------- ------------------
Q2 03 (3 MONTHS ENDED 6/30/03) ------------------------------------------------------------------ COMBINED ADJUSTMENTS TO SUBTOTAL TOTAL(2) EQUITY METHOD ------------------------------------------------------------------ REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ 37,715,580 $ (7,228,316) $ 30,487,264 Straight-Lining of Base Rents 612,136 (54,198) 557,938 Percentage Rents 288,141 (82,791) 205,350 Expense Reimbursables 11,402,102 (2,468,872) 8,933,230 Lease Termination 68,453 (6,239) 62,214 Other Real Estate Revenues 1,474,716 (330,638) 1,144,078 ------------------------------------------------------------------ TOTAL REVENUES 51,561,128 (10,171,054) 41,390,074 ------------------------------------------------------------------ REAL ESTATE OPERATING EXPENSES Operating and Maintenance 14,115,866 (2,839,652) 11,276,214 Real Estate Taxes 4,685,319 (846,218) 3,839,101 Minority Interest in properties 207,167 - 207,167 ------------------------------------------------------------------ TOTAL EXPENSES 19,008,352 (3,685,870) 15,322,482 ------------------------------------------------------------------ ------------------------------------------------------------------ NET OPERATING INCOME 32,552,776 (6,485,184) 26,067,592 ------------------------------------------------------------------ OTHER INCOME (EXPENSES) Management Company Revenue 3,654,460 - 3,654,460 Interest Income 193,127 - 193,127 GENERAL & ADMINISTRATIVE: Corporate Payroll (3,948,117) - (3,948,117) Other G&A Expenses (3,569,291) - (3,569,291) ------------------------------------------------------------------ EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 28,882,955 (6,485,184) 22,397,771 ------------------------------------------------------------------ Interest Expense (1) (13,975,115) 3,137,090 (10,838,025) Depreciation & Amortization (8,319,118) 1,324,953 (6,994,165) ------------------------------------------------------------------ TOTAL OTHER INCOME (EXPENSES) (22,294,233) 4,462,043 (17,832,190) ------------------------------------------------------------------ EQUITY IN INCOME OF PARTNERSHIPS AND JVS 2,023,141 2,023,141 ------------------------------------------------------------------ Gains (losses) on sales of interests in Real Estate 4,321,803 - 4,321,803 ------------------------------------------------------------------ Income before Minority Interest 10,910,525 - 10,910,525 ------------------------------------------------------------------ Minority Interest of O.P. Unitholders (823,758) - (823,758) ------------------------------------------------------------------ Income from Operations 10,086,767 - 10,086,767 ------------------------------------------------------------------ DISCONTINUED OPERATIONS: Income from Discontinued Operations - - - Equity in Income of partnerships and JVs Minority interest in properties Minority Interest of O.P. Unitholders (15,649,831) - (15,649,831) Gain (losses) on Disposition of Discontinued Operations 150,200,805 - 150,200,805 ------------------------------------------------------------------ TOTAL DISCONTINUED OPERATIONS 134,550,974 - 134,550,974 ------------------------------------------------------------------ Extraordinary item(Loss on early extinguishment of debt) - - - ------------------------------------------------------------------ NET INCOME 144,637,741 $ - $ 144,637,741 ------------------------------------------------------------------
Q2 03 (3 MONTHS ENDED 6/30/03) ---------------------------------------- ASSETS HELD FOR SALE TOTAL ---------------------------------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ (9,476,955) $ 21,010,309 Straight-Lining of Base Rents - 557,938 Percentage Rents 205,350 Expense Reimbursables - 8,933,230 Lease Termination (62,214) - Other Real Estate Revenues (357,256) 786,822 ---------------------------------------- TOTAL REVENUES (9,896,425) 31,493,649 ---------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance (4,005,337) 7,270,877 Real Estate Taxes (923,139) 2,915,962 Minority Interest in properties - 207,167 ---------------------------------------- TOTAL EXPENSES (4,928,476) 10,394,006 ---------------------------------------- ---------------------------------------- NET OPERATING INCOME (4,967,949) 21,099,643 ---------------------------------------- OTHER INCOME (EXPENSES) Management Company Revenue - 3,654,460 Interest Income - 193,127 GENERAL & ADMINISTRATIVE: Corporate Payroll - (3,948,117) Other G&A Expenses - (3,569,291) ---------------------------------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION (4,967,949) 17,429,822 ---------------------------------------- Interest Expense (1) 1,740,728 (9,097,297) Depreciation & Amortization - (6,994,165) ---------------------------------------- TOTAL OTHER INCOME (EXPENSES) 1,740,728 (16,091,462) ---------------------------------------- EQUITY IN INCOME OF PARTNERSHIPS AND JVS 2,023,141 ---------------------------------------- Gains (losses) on sales of interests in Real Estate - 4,321,803 ---------------------------------------- Income before Minority Interest (3,227,221) 7,683,304 ---------------------------------------- Minority Interest of O.P. Unitholders - (823,758) ---------------------------------------- Income from Operations (3,227,221) 6,859,546 ---------------------------------------- DISCONTINUED OPERATIONS: Income from Discontinued Operations 3,227,221 3,227,221 Equity in Income of partnerships and JVs - Minority interest in properties Minority Interest of O.P. Unitholders - (15,649,831) Gain (losses) on Disposition of Discontinued Operations - 150,200,805 ---------------------------------------- TOTAL DISCONTINUED OPERATIONS 3,227,221 137,778,195 ---------------------------------------- Extraordinary item(Loss on early extinguishment of debt) - - ---------------------------------------- NET INCOME $ - $ 144,637,741 ----------------------------------------
(1) Capitalized interest expense for the line of credit and construction loans of $424,554 is not included in the quarter ended 6/30/04 and $367,111 is not included in the quarter ended 6/30/03. (2) 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 33 PENNSYLVANIA REIT FLASH REPORT-RECONCILIATION TO GAAP (JUNE 30, 2004) QUARTERLY COMPARISON [GRAPHIC OMITTED] [GRAPHIC OMITTED] FINANCIAL STATEMENT
------------------------------------------------------------------------------------------------------------------------------------ Q2 04 (3 MONTHS ENDED 6/30/04) ------------------------------------------------------------------------------------------------------------------------------------ COMBINED TOTAL ADJUSTMENTS TO EQUITY METHOD SUBTOTAL ------------------------------------------------------------------------------------------------------------------------------------ Real Estate Revenues: Same Store $21,105,296 (7,175,351) $13,929,945 New 84,104,791 - 84,104,791 Redevelopment 3,475,966 - 3,475,966 Discontinued - - ------------------------------------------------------------------------------------------------------------------------------------ Total Real Estate Revenues 108,686,053 (7,175,351) 101,510,702 ------------------------------------------------------------------------------------------------------------------------------------ Operating Expenses: Same Store 5,686,340 (2,213,439) 3,472,901 New 34,108,456 - 34,108,456 Redevelopment 997,778 - 997,778 Discontinued - - ------------------------------------------------------------------------------------------------------------------------------------ Total Operating Expenses 40,792,574 (2,213,439) 38,579,135 ------------------------------------------------------------------------------------------------------------------------------------ NOI: Same Store 15,418,956 (4,961,912) 10,457,044 New 49,996,335 - 49,996,335 Redevelopment 2,478,188 - 2,478,188 Discontinued - - - ------------------------------------------------------------------------------------------------------------------------------------ NOI 67,893,479 (4,961,912) 62,931,567 ------------------------------------------------------------------------------------------------------------------------------------ OTHER INCOME (EXPENSES): Management Company Revenue 1,736,239 - 1,736,239 Interest Income 432,403 - 432,403 General & Administrative: Corporate Payroll (6,204,872) - (6,204,872) Other G&A Expenses (5,572,969) - (5,572,969) ------------------------------------------------------------------------------------------------------------------------------------ EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 58,284,280 (4,961,912) 53,322,368 ------------------------------------------------------------------------------------------------------------------------------------ Interest Expense (20,809,174) 2,171,992 (18,637,182) Depreciation and Amortization (24,809,124) 1,141,390 (23,667,734) EQUITY IN INCOME OF PARTNERSHIP AND JVS - 1,648,530 1,648,530 Gain(loss) on Sale of Interests in RE - - - DISCONTINUED OPERATIONS: - - - Income from Disposed Real Estate - - - Equity in income of partnership and JVs - - - Minority Interest in properties - - - Minority Interest of O.P. Unitholders (221,615) - (221,615) Gain (losses) on Disposition of Discontinued Operations - - - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISCONTINUED OPERATIONS (221,615) - (221,615) ------------------------------------------------------------------------------------------------------------------------------------ Extraordinary item(Loss on early extinguishment of debt) - - - Minority Interest of OP Unit Holders (1,052,624) - (1,052,624) ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ NET INCOME 11,391,743 - 11,391,743 ------------------------------------------------------------------------------------------------------------------------------------ Gain on Sale of Real Estate - - - Depreciation and Amor. of Real Estate 24,744,124 - 24,744,124 Dividends on preferred shares (3,403,125) - (3,403,125) FFO Adjustments 1,274,239 - 1,274,239 ------------------------------------------------------------------------------------------------------------------------------------ FFO 34,006,981 - 34,006,981 ------------------------------------------------------------------------------------------------------------------------------------ Adj. Straight Lining of Base Rents (1,218,075) - (1,218,075) Recurring Capital Expenditures (1,449,365) - (1,449,365) Tenant allowances (950,906) - (950,906) Amortization of Debt Premium (4,848,163) - (4,848,163) Amortization of Debt Premium 202,727 - 202,727 ------------------------------------------------------------------------------------------------------------------------------------ FAD $25,743,199 $ - $25,743,199 ------------------------------------------------------------------------------------------------------------------------------------ Total Dividends Share Price (at close) Weighted Average Number of Shares WA number of Shares and OP Units --------------------------------------------------- NET INCOME PER SHARE (BASIC) FFO/SHARE AND OP UNITS FAD/SHARE AND OP UNITS DIVIDEND/SHARE AND OP UNITS ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ Q2 04 (3 MONTHS ENDED 6/30/04) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS HELD FOR SALE TOTAL ------------------------------------------------------------------------------------------------------------------------------------ Real Estate Revenues: Same Store - $13,929,945 New - 84,104,791 Redevelopment - 3,475,966 Discontinued (7,133,291) (7,133,291) ------------------------------------------------------------------------------------------------------------------------------------ Total Real Estate Revenues (7,133,291) 94,377,411 ------------------------------------------------------------------------------------------------------------------------------------ Operating Expenses: Same Store - 3,472,901 New - 34,108,456 Redevelopment - 997,778 Discontinued (4,052,981) (4,052,981) ------------------------------------------------------------------------------------------------------------------------------------ Total Operating Expenses (4,052,981) 34,526,154 ------------------------------------------------------------------------------------------------------------------------------------ NOI: Same Store - 10,457,044 New - 49,996,335 Redevelopment - 2,478,188 Discontinued (3,080,310) (3,080,310) ------------------------------------------------------------------------------------------------------------------------------------ NOI (3,080,310) 59,851,257 ------------------------------------------------------------------------------------------------------------------------------------ OTHER INCOME (EXPENSES): Management Company Revenue - 1,736,239 Interest Income - 432,403 General & Administrative: Corporate Payroll - (6,204,872) Other G&A Expenses - (5,572,969) ------------------------------------------------------------------------------------------------------------------------------------ EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION (3,080,310) 50,242,058 ------------------------------------------------------------------------------------------------------------------------------------ Interest Expense $880,033 (17,757,149) Depreciation and Amortization - (23,667,734) EQUITY IN INCOME OF PARTNERSHIP AND JVS - 1,648,530 Gain(loss) on Sale of Interests in RE - - DISCONTINUED OPERATIONS: Income from Disposed Real Estate 2,206,931 2,206,931 Equity in income of partnership and JVs - - Minority Interest in properties (6,654) (6,654) Minority Interest of O.P. Unitholders - (221,615) Gain (losses) on Disposition of Discontinued Operations - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISCONTINUED OPERATIONS 2,200,277 1,978,662 ------------------------------------------------------------------------------------------------------------------------------------ Extraordinary item(Loss on early extinguishment of debt) - - Minority Interest of OP Unit Holders - (1,052,624) ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME - 11,391,743 ------------------------------------------------------------------------------------------------------------------------------------ Gain on Sale of Real Estate - - Depreciation and Amor. of Real Estate - 24,744,124 Dividends on preferred shares - (3,403,125) FFO Adjustments - 1,274,239 ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ FFO - 34,006,981 ------------------------------------------------------------------------------------------------------------------------------------ Adj. Straight Lining of Base Rents - (1,218,075) Recurring Capital Expenditures - (1,449,365) Tenant allowances - (950,906) Amortization of Debt Premium - (4,848,163) Amortization of Debt Premium - 202,727 ------------------------------------------------------------------------------------------------------------------------------------ FAD $ - $25,743,199 ------------------------------------------------------------------------------------------------------------------------------------ Total Dividends $ 21,612,938 Share Price (at close) $34.25 Weighted Average Number of Shares 35,516,772 WA number of Shares and OP Units 39,545,664 ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME PER SHARE (BASIC) $0.22 FFO/SHARE AND OP UNITS $0.86 FAD/SHARE AND OP UNITS $0.65 DIVIDEND/SHARE AND OP UNITS $0.54 ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ Q2 03 (3 MONTHS ENDED 6/30/03) ------------------------------------------------------------------------------------------------------------------------------------ COMBINED TOTAL ADJUSTMENTS TO EQUITY METHOD SUBTOTAL ------------------------------------------------------------------------------------------------------------------------------------ Real Estate Revenues: Same Store $20,298,540 (7,652,060) $12,646,480 New 17,591,232 (1,774,585) 15,816,647 Redevelopment 3,030,522 - 3,030,522 Discontinued 10,640,834 (744,409) 9,896,425 ------------------------------------------------------------------------------------------------------------------------------------ Total Real Estate Revenues 51,561,128 (10,171,054) 41,390,074 ------------------------------------------------------------------------------------------------------------------------------------ Operating Expenses: Same Store 5,516,903 (2,275,486) 3,241,417 New 7,232,724 (1,075,498) 6,157,226 Redevelopment 995,363 - 995,363 Discontinued 5,263,362 (334,886) 4,928,476 ------------------------------------------------------------------------------------------------------------------------------------ Total Operating Expenses 19,008,352 (3,685,870) 15,322,482 ------------------------------------------------------------------------------------------------------------------------------------ NOI: Same Store 14,781,637 (5,376,574) 9,405,063 New 10,358,508 (699,087) 9,659,421 Redevelopment 2,035,159 - 2,035,159 Discontinued 5,377,472 (409,523) 4,967,949 ------------------------------------------------------------------------------------------------------------------------------------ NOI 32,552,776 (6,485,184) 26,067,592 ------------------------------------------------------------------------------------------------------------------------------------ OTHER INCOME (EXPENSES): Management Company Revenue 3,654,460 - 3,654,460 Interest Income 193,127 - 193,127 General & Administrative: Corporate Payroll (3,948,117) - (3,948,117) Other G&A Expenses (3,569,291) - (3,569,291) ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 28,882,955 (6,485,184) 22,397,771 ------------------------------------------------------------------------------------------------------------------------------------ Interest Expense (13,975,115) 3,137,090 (10,838,025) Depreciation and Amortization (8,319,118) 1,324,953 (6,994,165) EQUITY IN INCOME OF PARTNERSHIP AND JVS 2,023,141 2,023,141 Gain(loss) on Sale of Interests in RE 4,321,803 - 4,321,803 DISCONTINUED OPERATIONS: - - Income from Disposed Real Estate - - - Equity in income of partnership and JVs - Minority Interest in properties Minority Interest of O.P. Unitholders (15,649,831) - (15,649,831) Gain (losses) on Disposition of Discontinued Operations 150,200,805 150,200,805 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISCONTINUED OPERATIONS 134,550,974 - 134,550,974 ------------------------------------------------------------------------------------------------------------------------------------ Extraordinary item(Loss on early extinguishment of debt) - - - Minority Interest of OP Unit Holders (823,758) - (823,758) ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME 144,637,741 - 144,637,741 ------------------------------------------------------------------------------------------------------------------------------------ Gain on Sale of Real Estate (154,522,608) - (154,522,608) Depreciation and Amor. of Real Estate 8,319,118 - 8,319,118 Dividends on preferred shares - - - FFO Adjustments 16,408,589 - 16,408,589 ------------------------------------------------------------------------------------------------------------------------------------ FFO 14,842,840 - 14,842,840 ------------------------------------------------------------------------------------------------------------------------------------ Adj. Straight Lining of Base Rents (612,136) - (612,136) Recurring Capital Expenditures (761,533) - (761,533) Tenant allowances (44,568) - (44,568) Amortization of Debt Premium (1,117,767) - (1,117,767) Amortization of Debt Premium 130,174 - - ------------------------------------------------------------------------------------------------------------------------------------ FAD $12,437,010 $ - $ 12,306,836 ------------------------------------------------------------------------------------------------------------------------------------ Total Dividends Share Price (at close) Weighted Average Number of Shares WA number of Shares and OP Units NET INCOME PER SHARE (BASIC) FFO/SHARE AND OP UNITS FAD/SHARE AND OP UNITS DIVIDEND/SHARE AND OP UNITS ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ Q2 03 (3 MONTHS ENDED 6/30/03) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS HELD FOR SALE TOTAL ------------------------------------------------------------------------------------------------------------------------------------ Real Estate Revenues: Same Store - $12,646,480 New - 15,816,647 Redevelopment - 3,030,522 Discontinued (9,896,425) - ------------------------------------------------------------------------------------------------------------------------------------ Total Real Estate Revenues (9,896,425) 31,493,649 ------------------------------------------------------------------------------------------------------------------------------------ Operating Expenses: Same Store - 3,241,417 New - 6,157,226 Redevelopment - 995,363 Discontinued (4,928,476) - ------------------------------------------------------------------------------------------------------------------------------------ Total Operating Expenses (4,928,476) 10,394,006 ------------------------------------------------------------------------------------------------------------------------------------ NOI: Same Store - 9,405,063 New - 9,659,421 Redevelopment - 2,035,159 Discontinued (4,967,949) - ------------------------------------------------------------------------------------------------------------------------------------ NOI (4,967,949) 21,099,643 ------------------------------------------------------------------------------------------------------------------------------------ OTHER INCOME (EXPENSES): Management Company Revenue - 3,654,460 Interest Income - 193,127 General & Administrative: - Corporate Payroll - (3,948,117) Other G&A Expenses - (3,569,291) ------------------------------------------------------------------------------------------------------------------------------------ EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION (4,967,949) 17,429,822 ------------------------------------------------------------------------------------------------------------------------------------ Interest Expense $1,740,728 (9,097,297) Depreciation and Amortization - (6,994,165) EQUITY IN INCOME OF PARTNERSHIP AND JVS - 2,023,141 Gain(loss) on Sale of Interests in RE - 4,321,803 DISCONTINUED OPERATIONS: - - Income from Disposed Real Estate 3,227,221 3,227,221 Equity in income of partnership and JVs - - Minority Interest in properties Minority Interest of O.P. Unitholders - (15,649,831) Gain (losses) on Disposition of Discontinued Operations - 150,200,805 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISCONTINUED OPERATIONS 3,227,221 137,778,195 ------------------------------------------------------------------------------------------------------------------------------------ Extraordinary item(Loss on early extinguishment of debt) - - Minority Interest of OP Unit Holders - (823,758) ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME - 144,637,741 ------------------------------------------------------------------------------------------------------------------------------------ Gain on Sale of Real Estate - (154,522,608) Depreciation and Amor. of Real Estate - 8,319,118 Dividends on preferred shares - - FFO Adjustments - 16,408,589 ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ FFO - 14,842,840 ------------------------------------------------------------------------------------------------------------------------------------ Adj. Straight Lining of Base Rents - (612,136) Recurring Capital Expenditures - (761,533) Tenant allowances (44,568) Amortization of Debt Premium (1,117,767) Amortization of Debt Premium - 130,174 ------------------------------------------------------------------------------------------------------------------------------------ FAD $ - $ 12,437,010 ------------------------------------------------------------------------------------------------------------------------------------ Total Dividends $ 9,352,573 Share Price (at close) $29.95 Weighted Average Number of Shares 16,615,576 WA number of Shares and OP Units 18,614,284 ---------------------------- NET INCOME PER SHARE (BASIC) $8.70 FFO/SHARE AND OP UNITS $0.80 FAD/SHARE AND OP UNITS $0.67 DIVIDEND/SHARE AND OP UNITS $0.51 ------------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
------------------------------------------------------------------------------------------------------------------------------------ ADJUSTMENTS TO SUBTOTAL COMBINED TOTAL EQUITY METHOD ----------------------------------------------------------------------------------- Investment in Real Estate, at cost $2,624,917,719 $ (137,845,332) $2,487,072,387 Accumulated Depreciation (149,510,279) 32,847,127 (116,663,152) Investment in and advances to Partnership and JVs - 31,622,774 31,622,774 Other Assets 336,003,965 (24,501,976) $311,501,989 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $2,811,411,405 $ (97,877,407) $2,713,533,998 ------------------------------------------------------------------------------------------------------------------------------------ Mortgage Notes $1,376,148,003 $ (108,594,598) $1,267,553,405 Line of Credit 219,000,000 - 219,000,000 Acquisition Term Loan & Unsecured Line of Credit - - - Other Liabilities 79,072,590 10,717,191 89,789,781 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES $1,674,220,593 $ (97,877,407) $1,576,343,186 ------------------------------------------------------------------------------------------------------------------------------------ Minority Interest $134,089,024 $ - $134,089,024 Total Shareholders Equity 1,003,101,788 - 1,003,101,788 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES AND SHAREHOLDER EQUITY $2,811,411,405 $ (97,877,407) $2,713,533,998 ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ ASSETS HELD TOTAL FOR SALE ------------------------------------------------------------------------------------------------------------------------------------ Investment in Real Estate, at cost $ (96,332,783) $2,390,739,604 Accumulated Depreciation - (116,663,152) Investment in and advances to Partnership and JVs - 31,622,774 Other Assets 96,332,783 407,834,772 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $ - $2,713,533,998 ------------------------------------------------------------------------------------------------------------------------------------ Mortgage Notes $ (63,662,623) $1,203,890,782 Line of Credit - 219,000,000 Acquisition Term Loan & Unsecured Line of Credit - - Other Liabilities 63,662,623 153,452,404 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES $ - $1,576,343,186 ------------------------------------------------------------------------------------------------------------------------------------ Minority Interest $ - $134,089,024 Total Shareholders Equity - 1,003,101,788 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES AND SHAREHOLDER EQUITY $ - $2,713,533,998 ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ ADJUSTMENTS TO SUBTOTAL COMBINED TOTAL EQUITY METHOD ------------------------------------------------------------------------------------------------------------------------------------ Investment in Real Estate, at cost $1,239,399,847 $ (205,006,909) $1,034,392,938 Accumulated Depreciation (110,045,761) 43,479,796 (66,565,965) Investment in and advances to Partnership and JVs 1,200,000 28,494,542 29,694,542 Other Assets 136,570,210 (28,078,659) $108,491,551 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $1,267,124,296 $ (161,111,230) $1,106,013,066 ------------------------------------------------------------------------------------------------------------------------------------ Mortgage Notes $698,964,718 $ (155,488,042) $543,476,676 Line of Credit 117,900,000 - 117,900,000 Acquisition Term Loan & Unsecured Line of Credit 20,249,935 - 20,249,935 Other Liabilities 43,522,390 (5,623,188) 37,899,202 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES $880,637,043 $ (161,111,230) $719,525,813 ------------------------------------------------------------------------------------------------------------------------------------ Minority Interest $61,828,093 $ - $61,828,093 Total Shareholders Equity 324,659,160 - 324,659,160 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES AND SHAREHOLDER EQUITY $1,267,124,296 $ (161,111,230) $1,106,013,066 ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------ ASSETS HELD TOTAL FOR SALE ------------------------------------------------------------------------------------------------------------------------------------ Investment in Real Estate, at cost (66,462,701) $967,930,237 Accumulated Depreciation 17,578,164 (48,987,801) Investment in and advances to Partnership and JVs - 29,694,542 Other Assets 48,884,537 157,376,088 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS - $1,106,013,066 ------------------------------------------------------------------------------------------------------------------------------------ Mortgage Notes (33,888,117) $509,588,559 Line of Credit - 117,900,000 Acquisition Term Loan & Unsecured Line of Credit - 20,249,935 Other Liabilities 33,888,117 71,787,319 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES - $719,525,813 ------------------------------------------------------------------------------------------------------------------------------------ Minority Interest - $61,828,093 Total Shareholders Equity - 324,659,160 ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES AND SHAREHOLDER EQUITY - $1,106,013,066 ------------------------------------------------------------------------------------------------------------------------------------
PAGE 34 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (JUNE 30, 2004) [GRAPHIC OMITTED] [GRAPHIC OMMITTED] DEFINITIONS FUND FROM OPERATIONS (FFO) The National Association of Real Estate Investment Trusts ("NAREIT") defines Funds From Operations ("FFO") which is a non-GAAP measure, as income before gains (losses) on sales of property and extraordinary items (computed in accordance with GAAP); plus real estate depreciation; plus or minus adjustments for unconsolidated partnership and joint ventures to reflect funds from operations on the same basis. FFO is a commonly used measure of operating performance and profitability in the REIT industry, and we use FFO as a supplemental non-GAAP measure to compare our company's performance to that of our industry peers. In addition, we use FFO as a performance measure for determining bonus amounts earned under certain of our performance-based executive compensation programs. 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 include gains (losses) on real estate assets, which are included in the determination of net income in accordance with GAAP. Accordingly, FFO is not a comprehensive measure of our operating cash flows. In addition, since FFO does not include depreciation on real estate assets, FFO may not be a useful performance measure when comparing our operating performance to that of other non-real estate commercial enterprises. We compensate for these limitations by using FFO in conjunction with other GAAP financial performance measures, such as net income and net cash provided by operating activities, and other non-GAAP financial performance measures such as net operating income. 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 FFO is helpful to management and 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 that are considered extraordinary under GAAP, gains on sales of real estate and depreciation and amortization of real estate. NET OPERATING INCOME (NOI) Net operating income ("NOI") which is a non-GAAP measure is derived from revenues (determined in accordance with GAAP) minus property operating expenses (determined in accordance with GAAP). Net operating income is a non-GAAP measure. It 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 net operating income. The Company believes that net operating income is helpful to management and investors as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. Net operating income excludes general and administrative expenses, management company revenues, interest income, interest expense, depreciation and amortization, income from discontinued operations and gains on sales of interests 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 35