-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, K+IU0J4nGgOJFd8hIjpNyKmOxOdP4F7D/VTFASP2M1e9SU8hFI8f+qxwVmdLkT1g c9m7FA605JUif9RPGocAQA== 0000950116-04-003392.txt : 20041112 0000950116-04-003392.hdr.sgml : 20041111 20041112152301 ACCESSION NUMBER: 0000950116-04-003392 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20041108 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041112 DATE AS OF CHANGE: 20041112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PENNSYLVANIA REAL ESTATE INVESTMENT TRUST CENTRAL INDEX KEY: 0000077281 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 236216339 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06300 FILM NUMBER: 041138850 BUSINESS ADDRESS: STREET 1: THE BELLEVUE STREET 2: 200 S BROAD STREET CITY: PHILADELPHIA STATE: PA ZIP: 19102 BUSINESS PHONE: 2155429250 MAIL ADDRESS: STREET 1: THE BELLEVUE STREET 2: 200 S BROAD STREET CITY: PHILADELPHIA STATE: PA ZIP: 19102 8-K 1 eight-k.htm 8-K Prepared and filed by St Ives Burrups

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

     
Date of report (Date of earliest event reported)   November 8, 2004
   
 
 
Pennsylvania Real Estate Investment Trust
(Exact Name of Registrant as Specified in its Charter)
         
         
Pennsylvania   1-6300   23-6216339
(State or Other Jurisdiction   (Commission   (IRS Employer
of Incorporation or Organization)    File Number)    Identification No.)
     
     
The Bellevue, 200 S. Broad Street, Philadelphia, Pennsylvania   19102
(Address of Principal Executive Offices)    (Zip Code)
     
     
Registrant’s telephone number, including area code:   (215) 875-0700
   
 
 
(Former Name or Former Address, if Changed Since Last Report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
     
  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
     
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
     
  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     
  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
     
   
Item 2.02 Results of Operations and Financial Condition.

The following information, furnished under “Item 2.02. Results of Operations and Financial Condition,” shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.

On November 8, 2004, Pennsylvania Real Estate Investment Trust provided on its web site at www.preit.com its Quarterly Supplemental Disclosure dated September 30, 2004. A copy of the Quarterly Supplemental Disclosure is attached as an exhibit to this report.

Item 9.01 Financial Statements and Exhibits.
     
(c) Exhibits.
     
  99.1 Quarterly Supplemental Disclosure dated September 30, 2004.

- 2 -

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

   PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
       
       
Date: November 12, 2004 By:   /s/ Jonathan B. Weller
     
      Jonathan B. Weller
      Vice Chairman

- 3 -

Exhibit Index

99.1           Quarterly Supplemental Disclosure dated September 30, 2004.

- 4 -

 GRAPHIC 2 emptybox.gif GRAPHIC begin 644 emptybox.gif M1TE&.#EA#``,`/?^``````$!`0("`@,#`P0$!`4%!08&!@<'!P@("`D)"0H* M"@L+"PP,#`T-#0X.#@\/#Q`0$!$1$1(2$A,3$Q04%!45%186%A<7%Q@8&!D9 M&1H:&AL;&QP<'!T='1X>'A\?'R`@("$A(2(B(B,C(R0D)"4E)28F)B7IZ>GM[>WQ\?'U]?7Y^?G]_?X"`@(&!@8*" M@H.#@X2$A(6%A8:&AH>'AXB(B(F)B8J*BHN+BXR,C(V-C8Z.CH^/CY"0D)&1 MD9*2DI.3DY24E)65E9:6EI>7EYB8F)F9F9J:FIN;FYRGI^?GZ"@ MH*&AH:*BHJ.CHZ2DI*6EI::FIJ>GIZBHJ*FIJ:JJJJNKJZRLK*VMK:ZNKJ^O MK["PL+&QL;*RLK.SL[2TM+6UM;:VMK>WM[BXN+FYN;JZNKN[N[R\O+V]O;Z^ MOK^_O\#`P,'!P<+"PL/#P\3$Q,7%Q<;&QL?'Q\C(R,G)RWM_?W^#@X.'AX>+BXN/CX^3DY.7EY>;FYN?GY^CHZ.GIZ>KJZNOK MZ^SL[.WM[>[N[N_O[_#P\/'Q\?+R\O/S\_3T]/7U]?;V]O?W]_CX^/GY^?KZ M^OO[^_S\_/W]_?[^_O___R'Y!`$``/X`+``````,``P`!P@Z`/\)'$APX)L? M"!,J_/<#F;B'$!\:8"BNX,`#%"T*Q/BCHD:.'BV"U/AOY,>,)SN2Y&C@@,N7 &+@$$!``[ ` end EX-99 3 ex99-1.txt EXHIBIT 99.1 EXhibit 99.1 [PREIT GRAPHIC OMITTED] PEI LISTED NYSE PENNSYLVANIA REAL ESTATE INVESTMENT TRUST QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) WWW.PREIT.COM PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) 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
THIS QUARTERLY SUPPLEMENTAL DISCLOSURE CONTAINS CERTAIN "FORWARD-LOOKING STATEMENTS" THAT RELATE TO EXPECTATIONS, PROJECTIONS, ANTICIPATED EVENTS, TRENDS AND OTHER MATTERS THAT ARE NOT HISTORICAL FACTS. THESE FORWARD-LOOKING STATEMENTS REFLECT PREIT'S CURRENT VIEWS ABOUT FUTURE EVENTS AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS THAT MAY CAUSE FUTURE EVENTS, ACHIEVEMENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED BY THE FORWARD-LOOKING STATEMENTS. PREIT'S BUSINESS IS SUBJECT TO UNCERTAINTIES REGARDING THE REVENUES, OPERATING EXPENSES, LEASING ACTIVITIES, OCCUPANCY RATES, AND OTHER COMPETITIVE FACTORS RELATING TO PREIT'S PORTFOLIO AND CHANGES IN LOCAL MARKET CONDITIONS AS WELL AS GENERAL ECONOMIC, FINANCIAL AND POLITICAL CONDITIONS, WHICH MAY CAUSE FUTURE EVENTS, ACHIEVEMENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED BY THE FORWARD-LOOKING STATEMENTS. PREIT DISCLAIMS ANY DUTY TO UPDATE ANY FORWARD-LOOKING STATEMENTS SET FORTH IN THIS QUARTERLY SUPPLEMENTAL DISCLOSURE TO REFLECT NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. INVESTORS ARE ALSO DIRECTED TO CONSIDER THE RISKS DISCUSSED IN DOCUMENTS PREIT HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AND, IN PARTICULAR, PREIT'S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2003. PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) 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 31.0 million square feet) located in the eastern United States. PREIT's portfolio consists of 52 properties in 12 states. PREIT's portfolio includes 35 shopping malls, 13 strip and power centers and four industrial properties. PREIT is headquartered in Philadelphia, Pennsylvania. RESEARCH COVERAGE - -------------------------------------------------------------------------- COMPANY ANALYST PHONE NUMBER - -------------------------------------------------------------------------- Green Street Advisors Gregory R. Andrews (949) 640-8780 Barbara M. Hoogland (949) 640-8780 - -------------------------------------------------------------------------- JP Morgan Michael W. Mueller (212) 622-6689 Anthony Paolone (212) 622-6682 Joshua Bederman (212) 622-6530 - -------------------------------------------------------------------------- Legg Mason Wood Walker David M. Fick (410) 539-0000 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 11/8/2004 11/5/2003 - -------------------------------------------------------------------------------- Fourth Quarter 2/24/2005(1) 2/25/2004 - -------------------------------------------------------------------------------- (1) Tentative dates. - --------------------------------------------------------------------------------
Quarterly conference calls are arranged by KCSA Worldwide. To participate, please contact Evan Smith at (212) 896-1251. For additional information, please contact: Edward Glickman or Nurit Yaron 200 South Broad Street Philadelphia, PA 19102 (215) 875-0700 Phone (866) 875-0700 Toll Free (215) 546-7311 Fax yaronn@preit.com Email PAGE 1 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) TIME LINE/RECENT DEVELOPMENTS OCTOBER 29, 2004 - Pennsylvania Real Estate Investment Trust announced that its Board of Trustees 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. OCTOBER 29, 2004 - Pennsylvania Real Estate Investment Trust announced that it intends to release its financial results for the third quarter and nine months ended September 30, 2004 on Monday, November 8, 2004. It also announced that Management will hold a conference call on Monday, November 8, 2004 at 3:00PM ET to review the Company's third quarter and nine month results, market trends and future outlook. OCTOBER 19, 2004 - Pennsylvania Real Estate Investment Trust announced that it has signed a binding agreement to acquire Orlando Fashion Square in Orlando, Florida, for approximately $123.5 million. The transaction is expected to be completed in the fourth quarter of 2004. OCTOBER 11, 2004 - Pennsylvania Real Estate Investment Trust announced that it has reached an agreement with the owners of Cumberland Mall Associates to acquire Cumberland Mall in Vineland, New Jersey for approximately $59.5 million. The transaction is expected to be completed in the fourth quarter of 2004. SEPTEMBER 28, 2004 - Pennsylvania Real Estate Investment Trust announced that it completed the sale of non-core malls for a sale price of approximately $110.7 million. The Company did not record a gain or loss from the sale. The net cash proceeds from the sale of the malls were approximately $108.5 million after closing costs and adjustments and were used to pay down PREIT's credit facility. The Company also announced that on August 31, 2004, it sold its 60% ownership interest in Rio Grande Mall, a 166,000 square feet strip center in Rio Grande, New Jersey, to an affiliate of its joint venture partner in this property, for net proceeds of $4.1 million. PREIT recorded a gain of approximately $1.5 million in the third quarter of 2004 from this transaction. AUGUST 23, 2004 - Pennsylvania Real Estate Investment Trust announced that it has re-launched its website, www.preit.com. AUGUST 5, 2004 - Pennsylvania Real Estate Investment Trust today announced its results for the second quarter and six months ended June 30, 2004. Net income available to common shareholders for the second quarter of 2004 was $0.21 per diluted share. FFO per common share and Operating Partnership unit ("share") for the second quarter of 2004 was $0.86, which was above the midpoint of the Company's guidance provided in May 2004. AUGUST 5, 2004 - Pennsylvania Real Estate Investment Trust announced a redevelopment plan for Patrick Henry Mall in Newport News, VA. The 640,000 square foot center is currently anchored by Hecht's, JC Penney and two Dillard's department stores. The plan incorporates a March 2005 closing of the 65,000 square foot Dillard's Men's store, and an expansion of the second store by 26,000 square feet, to a 142,000 square foot Dillard's location. JULY 30, 2004 - Pennsylvania Real Estate Investment Trust announced that its Board of Trustees 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 EDT 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. NOTE: COPIES OF THE PRESS RELEASES ARE AVAILABLE ON THE COMPANY'S WEBSITE AT WWW.PREIT.COM. PAGE 2 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) 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).
Q3:9/30/04 Q2:6/30/04 Q1:3/31/04 CY:12/31/03 ---------------------------------------------------------------------------------------------------------------------------------- High Price 38.85 37.87 37.85 36.30 Low Price 33.40 30.25 33.30 24.70 Close 38.66 34.25 37.66 36.30 Average Daily Trading Volume 122,095 181,397 220,144 109,892 Common Shares Outstanding at end of period 36,094,567 35,938,306 35,778,863 35,544,265 O.P. Units 4,429,030 4,444,030 3,834,714 3,691,516 --------- --------- --------- --------- Fully Diluted Shares Outstanding 40,523,597 40,382,336 39,613,577 39,235,781 Weighted Avg. number of common shares outstanding 35,695,353 35,516,772 35,403,257 20,389,577 Weighted Avg. effect of full conversion of O.P. units 4,435,878 4,028,892 3,836,144 2,303,449 --------- --------- --------- --------- Wtd Avg. Common Shares Outstanding and O.P. Units 40,131,231 39,545,664 39,239,401 22,693,026 Preferred Shares, Nominal Value $ 123,750,000 $ 123,750,000 $ 123,750,000 $ 123,750,000 Market Value of Shares (based on closing price) $1,690,392,260 $1,506,845,008 $1,615,597,310 $1,548,008,850 - ------------------------------------------------------------------------------------------------------------------------------------ Q3:9/30/03 CY 12/31/02 CY 12/31/01 - ----------------------------------------------------------------------------------------------------------- High Price 33.45 27.20 25.05 Low Price 29.80 20.55 18.25 Close 33.45 26.00 23.20 Average Daily Trading Volume 96,738 41,495 39,463 Common Shares Outstanding at end of period 23,480,595 16,697,119 15,876,084 O.P. Units 2,056,861 1,763,318 1,753,580 --------- --------- --------- Fully Diluted Shares Outstanding 25,537,456 18,460,437 17,629,664 Weighted Avg. number of common shares outstanding 19,488,367 16,162,327 14,656,711 Weighted Avg. effect of full conversion of O.P. units 2,049,112 1,804,779 1,869,383 --------- --------- --------- Wtd Avg. Common Shares Outstanding and O.P. Units 21,537,479 17,967,106 16,526,094 Preferred Shares, Nominal Value Market Value of Shares (based on closing price) $854,227,903 $479,971,362 $409,008,205 - -----------------------------------------------------------------------------------------------------------
SHAREHOLDER INFORMATION
TEN LARGEST INSTITUTIONAL SHAREHOLDERS: COMMON SHARES HELD (1) 09/30/2004 ---------- RREEF Real Estate Securities Advisers, L.P. 3,981,970 Barclays Global Investors 1,658,267 ING Clarion Real Estate Securities 1,428,553 Vanguard Group, Inc. 1,367,199 Urdang Investment Management, Inc. 756,600 State Street Global Advisors 737,063 Neuberger Berman, LLC 660,450 ABP Investment U.S.,Inc 550,000 J.P Morgan Investment Management Inc. (NY) 532,161 K.G. Redding & Associates 443,500 TOTAL OF TEN LARGEST INSTITUTIONAL: 12,115,763 TOTAL OF ALL INSTITUTIONAL HOLDERS: 19,667,756 TEN LARGEST AS % OF TOTAL INSTITUTIONAL: 61.6%
(1) Based on 13F filings as of 9/30/04 or most recent filings. (GRAPH OMITTED)
INTERIM NET SHARE OWNERSHIP BY INSIDERS: SHARES HELD (INCLUDING O.P. UNITS, AS OF % OF PURCHASES OF AS OF % OF BENEFICIAL OWNERSHIP AND EXERCISABLE OPTIONS) 4/1/04(1) TOTAL (2) SHARES (3) 12/31/03(4) 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 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) 4,708,120 11.8% 149,305 4,560,889 11.6% - -----------------------------------------------------------------------------------------------------------------------------------
(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 September 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
Q3:9/30/04 Q2:6/30/04 Q1:3/31/04 CY:12/31/03 Q3:9/30/03 CY 12/31/02 CY 12/31/01 - ----------------------------------------------------------------------------------------------------------------------------------- Dividend per share $ 0.540 $ 0.540 $ 0.540 $ 2.070 $ 0.510 $ 2.040 $ 2.040 Annualized Dividend Yield(1) 5.6% 6.3% 5.7% 5.7% 6.1% 7.8% 8.8% Capital Gain Pre-May 6 N/A N/A N/A 0.096 0 $ 0.082 $ 0.110 Capital Gain Post-May 5 N/A N/A N/A 0.213 0.055 Section 1250 Gain N/A N/A N/A 0.480 0.181 $ - $ 0.129 Return of Capital/Non- Taxable N/A 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 N/A $ - $ - Ordinary Income N/A N/A N/A $ 1.196 $ 0.253 $ 1.824 $ 1.801 - ------------------------------------------------------------------------------------------------------------------------------------
(1) Based on closing stock price for the period.
BREAKDOWN OF SHARE & UNIT % OF 9/30/04 OWNERSHIP: SHARES HELD 9/30/2004 9/30/03 TOTAL ---------- ---------- ------------ Institutional (1) 19,667,756 7,354,860 48.5% Retail (2) 16,622,056 16,369,287 41.0% Insiders (3) 4,233,785 1,813,309 10.4% ---------- ---------- ------ TOTAL 40,523,597 25,537,456 100.0%
(GRAPH OMITTED) (1) Based on 13F filings as of 9/30/04 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). PAGE 3 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) MARKET CAPITALIZATION
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, 2004 2004 2004 2003 -------------- -------------- -------------- -------------- EQUITY CAPITALIZATION Shares Outstanding 36,094,567 35,938,306 35,778,863 35,544,265 O.P. Units Outstanding 4,429,030 4,444,030 3,834,714 3,691,516 -------------- -------------- -------------- -------------- TOTAL Shares and O.P. Units 40,523,597 40,382,336 39,613,577 39,235,781 Market Price (at end of period) $ 38.66 $ 34.25 $ 37.66 $ 36.30 Preferred Shares, Nominal Value $ 123,750,000 $ 123,750,000 $ 123,750,000 $ 123,750,000 EQUITY MARKET CAPITALIZATION $1,690,392,260 $1,506,845,008 $1,615,597,310 $1,548,008,850 DEBT CAPITALIZATION Unsecured Debt Balance $ 112,000,000 $ 219,000,000 $ 182,000,000 $ 170,000,000 Secured Debt Balance 1,366,090,242 1,376,148,003 1,386,313,775 1,396,262,538 -------------- -------------- -------------- -------------- DEBT CAPITALIZATION $1,478,090,242 $1,595,148,003 $1,568,313,775 $1,566,262,538 -------------- -------------- -------------- -------------- TOTAL MARKET CAPITALIZATION $3,168,482,502 $3,101,993,011 $3,183,911,085 $3,114,271,388 ============== ============== ============== ============== PREFERRED SHARES/TOTAL MARKET CAPITALIZATION 3.9% 4.0% 3.9% 4.0% SHARES AND O.P. UNITS/TOTAL MARKET CAPITALIZATION 49.4% 44.6% 46.9% 45.7% DEBT CAPITALIZATION/TOTAL MARKET CAPITALIZATION 46.6% 51.4% 49.3% 50.3% EQUITY CAPITALIZATION/TOTAL MARKET CAPITALIZATION 53.4% 48.6% 50.7% 53.6% UNSECURED DEBT BALANCE/TOTAL DEBT 7.6% 13.7% 11.6% 10.9% [ ] PREFERRED SHARES/TOTAL MARKET CAPITALIZATION [ ] SHARES AND O.P. UNITS/TOTAL MARKET GRAPHIC GRAPHIC GRAPHIC GRAPHIC CAPITALIZATION OMMITED OMMITED OMMITED OMMITED [ ] DEBT CAPITALIZATION/TOTAL MARKET CAPITALIZATION SEPTEMBER 30, DECEMBER 31, DECEMBER 31, 2003 2002 2001 -------------- -------------- ------------ EQUITY CAPITALIZATION Shares Outstanding 23,480,595 16,697,119 15,876,084 O.P. Units Outstanding 2,056,861 1,763,318 1,753,580 -------------- -------------- ------------ TOTAL Shares and O.P. Units 25,537,456 18,460,437 17,629,664 Market Price (at end of period) $ 33.45 $ 26.00 $ 23.20 Preferred Shares, Nominal Value EQUITY MARKET CAPITALIZATION $ 854,227,903 $ 479,971,362 $409,008,205 DEBT CAPITALIZATION Unsecured Debt Balance $ - $ - Secured Debt Balance 739,061,360 617,279,770 506,175,818 -------------- -------------- ------------ DEBT CAPITALIZATION $ 739,061,360 $ 617,279,770 $506,175,818 -------------- -------------- ------------ TOTAL MARKET CAPITALIZATION $1,593,289,263 $1,097,251,132 $915,184,023 ============== ============== ============ PREFERRED SHARES/TOTAL MARKET CAPITALIZATION SHARES AND O.P. UNITS/TOTAL MARKET CAPITALIZATION 53.6% 43.7% 44.7% DEBT CAPITALIZATION/TOTAL MARKET CAPITALIZATION 46.4% 56.3% 55.3% EQUITY CAPITALIZATION/TOTAL MARKET CAPITALIZATION 53.6% 43.7% 44.7% UNSECURED DEBT BALANCE/TOTAL DEBT 0.0% 0.0% 0.0% [ ] PREFERRED SHARES/TOTAL MARKET CAPITALIZATION [ ] SHARES AND O.P. UNITS/TOTAL MARKET GRAPHIC GRAPHIC GRAPHIC CAPITALIZATION OMMITED OMMITED OMMITED [ ] DEBT CAPITALIZATION/TOTAL MARKET CAPITALIZATION
CAPITAL RESOURCES SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, 2004 2004 2004 2003 -------------- -------------- -------------- -------------- CASH ON HAND $ 35,824,104 $ 32,002,089 $ 37,024,603 $ 46,883,041 LINE OF CREDIT CAPACITY (1) $ 500,000,000 $ 500,000,000 $ 500,000,000 $ 500,000,000 Amount Used (includes letters of credit) (114,124,533) (220,195,000) (183,195,000) (170,500,000) -------------- -------------- -------------- -------------- Available LOC (2) $ 385,875,467 $ 279,805,000 $ 316,805,000 $ 329,500,000 SHELF REGISTRATION $1,000,000,000 $1,000,000,000 $1,000,000,000 $1,000,000,000 Amount Used (344,146,042) (344,146,042) (344,146,042) (344,146,042) -------------- -------------- -------------- -------------- Available Shelf $ 655,853,958 $ 655,853,958 $ 655,853,958 $ 655,853,958 -------------- -------------- -------------- -------------- TOTAL CAPITAL RESOURCES $1,077,553,529 $ 967,661,047 $1,009,683,561 $1,032,236,999 ============== ============== ============== ============== SEPTEMBER 30, DECEMBER 31, DECEMBER 31, 2003 2002 2001 ------------- ------------- -------------- CASH ON HAND $ 43,512,963 $ 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) (673,671) (131,473,671) (100,168,659) ------------- ------------- -------------- Available LOC (2) $ 199,326,329 $ 68,526,329 $ 74,831,341 SHELF REGISTRATION $ 500,000,000 $ 500,000,000 $ 200,000,000 Amount Used (344,146,042) (155,977,292) (148,925,000) ------------- ------------- -------------- Available Shelf $ 155,853,958 $ 344,022,708 $ 51,075,000 ------------- ------------- -------------- TOTAL CAPITAL RESOURCES $ 398,693,250 $ 431,177,174 $ 142,148,791 ============= ============= ==============
(1) The unsecured revolving line of credit established in November 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. PAGE 4 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) BALANCE SHEET (Wholly Owned vs. JVs)
---------------------------------------------------------------- SEPTEMBER 30, 2004 ---------------------------------------------------------------- PREIT PREIT'S % CORPORATE COMBINED WHOLLY OWNED OF JVS (5) TOTAL ---------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties (1) $2,382,406,902 $131,428,634 - $2,513,835,536 Multifamily Properties - - - - Industrial Properties 2,504,211 - - 2,504,211 Land Held for Development 9,542,722 - - 9,542,722 Construction In Progress 21,905,523 1,693,762 - 23,599,285 ---------------------------------------------------------------- TOTAL INVESTMENTS IN REAL ESTATE 2,416,359,358 133,122,396 - 2,549,481,754 Accumulated Depreciation (132,819,645) (31,124,661) - (163,944,306) ---------------------------------------------------------------- Net Real Estate 2,283,539,713 101,997,735 - 2,385,537,448 ---------------------------------------------------------------- Advances to Partnerships and Joint Ventures - - - ---------------------------------------------------------------- 2,283,539,713 101,997,735 - 2,385,537,448 ---------------------------------------------------------------- Other Assets: Cash and Cash Equivalents 13,607,397 5,423,522 16,793,185 35,824,104 Rents and Other Receivables 24,535,010 6,894,906 1,093,147 32,523,063 Other assets held for sale (1) 6,441,947 - - 6,441,947 Intangible Assets (2) 151,473,409 - 11,801,252 163,274,661 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 41,626,021 11,015,165 16,972,315 69,613,501 ---------------------------------------------------------------- TOTAL OTHER ASSETS 237,683,784 23,333,593 46,659,899 307,677,276 ---------------------------------------------------------------- TOTAL ASSETS 2,521,223,497 125,331,328 46,659,899 2,693,214,724 ================================================================ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 1,197,089,339 108,055,084 - 1,305,144,423 Mortgage Debt Premium (3) 60,945,819 - 60,945,819 Bank Loans Payable - - 112,000,000 112,000,000 Acquisition Term Loan & Unsecured Line of Credit - - - - Liabilities Related to Assets held for sale 707,595 - 707,595 Other Liabilities (4) 49,680,235 2,772,090 28,578,718 81,031,043 ---------------------------------------------------------------- TOTAL LIABILITIES 1,308,422,988 110,827,174 140,578,718 1,559,828,880 ---------------------------------------------------------------- ---------------------------------------------------------------- Minority Interest 3,702,340 - 129,072,186 132,774,526 ---------------------------------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - 36,094,566 36,094,566 Preferred Shares $0.01 Par 24,750 24,750 Capital Contributed in Excess of Par - - 892,853,369 892,853,369 Restricted Stock - - (8,593,279) (8,593,279) Other Comprehensive Income - - (1,830,568) (1,830,568) Retained Earnings (Distributions in Excess of Net Income) - - 82,062,480 82,062,480 ---------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY - - 1,000,611,318 1,000,611,318 ---------------------------------------------------------------- ---------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,312,125,328 $110,827,174 $1,270,262,222 $2,693,214,724 ================================================================
---------------------------------------------------------------- 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 ================================================================
-------------------------------------------------------------- SEPTEMBER 30, 2003 -------------------------------------------------------------- PREIT PREIT'S % CORPORATE COMBINED WHOLLY OWNED OF JVS (5) TOTAL -------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties (1) $1,143,102,938 $146,787,604 - $1,289,890,542 Multifamily Properties - - - - Industrial Properties 2,504,211 - - 2,504,211 Land Held for Development - - - - Construction In Progress 16,110,564 1,563,289 - 17,673,853 -------------------------------------------------------------- TOTAL INVESTMENTS IN REAL ESTATE 1,161,717,713 148,350,893 - 1,310,068,606 Accumulated Depreciation (60,922,254) (36,454,134) - (97,376,388) -------------------------------------------------------------- Net Real Estate 1,100,795,459 111,896,759 - 1,212,692,218 -------------------------------------------------------------- Advances to Partnerships and Joint Ventures - - 1,200,000 1,200,000 -------------------------------------------------------------- 1,100,795,459 111,896,759 1,200,000 1,213,892,218 -------------------------------------------------------------- Other Assets: Cash and Cash Equivalents 10,042,912 5,113,326 28,356,725 43,512,963 Rents and Other Receivables 11,108,819 8,570,389 2,230,635 21,909,843 Other assets held for sale (1) - - - - Intangible Assets (2) 46,915,709 9,041,888 55,957,597 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 32,647,874 12,102,884 8,979,808 53,730,566 -------------------------------------------------------------- TOTAL OTHER ASSETS 100,715,314 25,786,599 48,609,056 175,110,969 -------------------------------------------------------------- TOTAL ASSETS 1,201,510,773 137,683,358 49,809,056 1,389,003,187 ============================================================== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 599,292,496 118,525,862 - 717,818,358 Mortgage Debt Premium (3) 21,243,002 21,243,002 Bank Loans Payable - Acquisition Term Loan & Unsecured Line of Credit - - - Liabilities Related to Assets held for sale 915,292 36,458 - 951,750 Other Liabilities (4) 25,504,728 4,429,363 12,458,923 42,393,014 -------------------------------------------------------------- TOTAL LIABILITIES 646,955,518 122,991,683 12,458,923 782,406,124 -------------------------------------------------------------- -------------------------------------------------------------- Minority Interest 5,991,467 - 58,270,123 64,261,590 -------------------------------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - 23,480,595 23,480,595 Preferred Shares $0.01 Par - - Capital Contributed in Excess of Par - - 407,738,529 407,738,529 Restricted Stock - - (3,901,106) (3,901,106) Other Comprehensive Income - - (1,928,590) (1,928,590) Retained Earnings (Distributions in Excess of Net Income) - - 116,946,045 116,946,045 -------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY - - 542,335,473 542,335,473 -------------------------------------------------------------- -------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 652,946,985 $122,991,683 $613,064,519 $1,389,003,187 ==============================================================
(1) Investment in real estate as of September 30, 2004 and December 31, 2003 includes $8,102,171 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. (2) Includes value of acquired in-place leases and above-market value of leases recorded in connection with the acquisition of properties since 2002. 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. PAGE 5 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) BALANCE SHEET (1) (Line of Business)
SEPTEMBER 30, 2004 ------------------------------------------------------------------------------------------ POWER AND OTHER COMBINED MALLS STRIP CENTERS TOTAL RETAIL PROPERTIES CORPORATE TOTAL ------------------------------------------------------------------------------------------ ASSETS Investments in Real Estate, at cost (2) $2,201,466,423 $312,369,113 $2,513,835,536 $35,646,218 $ - $2,549,481,754 ========================================================================================== Accumulated Depreciation (118,323,088) (43,506,827) (161,829,915) (2,114,391) - (163,944,306) ========================================================================================== NET REAL ESTATE 2,083,143,335 268,862,286 2,352,005,621 33,531,827 - 2,385,537,448 ========================================================================================== Investments in PREIT-RUBIN Advances to Partnerships and Joint Ventures - - - - - Advances to PREIT-RUBIN - ------------------------------------------------------------------------------------------ 2,083,143,335 268,862,286 2,352,005,621 33,531,827 - 2,385,537,448 ------------------------------------------------------------------------------------------ Allowance for Possible Losses - - - - ------------------------------------------------------------------------------------------ 2,083,143,335 268,862,286 2,352,005,621 33,531,827 - 2,385,537,448 ------------------------------------------------------------------------------------------ Other Assets: Cash 15,834,332 3,196,587 19,030,919 16,793,185 35,824,104 Other assets held for sale 6,441,947 6,441,947 - 6,441,947 Intangible Assets (3) 151,473,409 151,473,409 11,801,252 163,274,661 Other Assets, Net (4) 47,464,010 24,494,001 71,958,011 12,113,091 18,065,462 102,136,564 ------------------------------------------------------------------------------------------ TOTAL OTHER ASSETS 221,213,698 27,690,588 248,904,286 12,113,091 46,659,899 307,677,276 ------------------------------------------------------------------------------------------ TOTAL ASSETS 2,304,357,033 296,552,874 2,600,909,907 45,644,918 46,659,899 2,693,214,724 ========================================================================================== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 1,200,459,167 104,685,256 1,305,144,423 - - 1,305,144,423 Mortgage Debt Premium (5) 59,512,588 1,433,231 60,945,819 - 60,945,819 Bank Loans Payable - - 112,000,000 112,000,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Construction Loans - - - - - - Liabilities Related to Assets held for sale 707,595 707,595 - - 707,595 Other Liabilities (6) 44,109,107 4,680,136 48,789,243 3,663,082 28,578,718 81,031,043 ------------------------------------------------------------------------------------------ TOTAL LIABILITIES 1,304,788,457 110,798,623 1,415,587,080 3,663,082 140,578,718 1,559,828,880 ------------------------------------------------------------------------------------------ Minority Interest 3,702,340 3,702,340 - 129,072,186 132,774,526 ------------------------------------------------------------------------------------------ Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - - 36,094,566 36,094,566 Preferred Shares $0.01 Par 24,750 24,750 Capital Contributed in Excess of Par - - - 892,853,369 892,853,369 Restricted Stock - - - (8,593,279) (8,593,279) Other Comprehensive Income - - - (1,830,568) (1,830,568) Retained Earnings (Distributions in Excess of Net Income) - - - 82,062,480 82,062,480 ------------------------------------------------------------------------------------------ TOTAL SHAREHOLDERS' EQUITY - - - - 1,000,611,318 1,000,611,318 ------------------------------------------------------------------------------------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,308,490,797 $110,798,623 $1,419,289,420 $ 3,663,082 $1,270,262,222 $2,693,214,724 ==========================================================================================
DECEMBER 31, 2003 ------------------------------------------------------------------------------------------ POWER AND OTHER COMBINED MALLS STRIP CENTERS TOTAL 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 ==========================================================================================
SEPTEMBER 30, 2003 --------------------------------------------------------------------------------- COMBINED RETAIL MULTIFAMILY OTHER PROPERTIES CORPORATE TOTAL --------------------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost (2) $1,289,890,542 $ - $20,178,064 $ - $1,310,068,606 ================================================================================= Accumulated Depreciation (95,312,157) (2,064,231) - (97,376,388) ================================================================================= NET REAL ESTATE 1,194,578,385 - 18,113,833 - 1,212,692,218 ================================================================================= Investments in PREIT-RUBIN Advances to Partnerships and Joint Ventures - - - 1,200,000 1,200,000 Advances to PREIT-RUBIN --------------------------------------------------------------------------------- 1,194,578,385 - 18,113,833 1,200,000 1,213,892,218 --------------------------------------------------------------------------------- Allowance for Possible Losses - - - - - --------------------------------------------------------------------------------- 1,194,578,385 - 18,113,833 1,200,000 1,213,892,218 --------------------------------------------------------------------------------- Other Assets: Cash 14,448,465 707,773 - 28,356,725 43,512,963 Other assets held for sale - Intangible Assets (3) 46,915,709 9,041,888 55,957,597 Other Assets, Net (4) 53,567,903 469,242 10,392,821 11,210,443 75,640,409 --------------------------------------------------------------------------------- TOTAL OTHER ASSETS 114,932,077 1,177,015 10,392,821 48,609,056 175,110,969 --------------------------------------------------------------------------------- TOTAL ASSETS 1,309,510,462 1,177,015 28,506,654 49,809,056 1,389,003,187 ================================================================================= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 717,818,358 - - - 717,818,358 Mortgage Debt Premium (5) 21,243,002 - - - 21,243,002 Bank Loans Payable - - - - - Acquisition Term Loan & Unsecured Line of Credit - - - - - Construction Loans - - - - - Liabilities Related to Assets held for sale - 951,750 - - 951,750 Other Liabilities (6) 27,237,935 - 2,696,156 12,458,923 42,393,014 --------------------------------------------------------------------------------- TOTAL LIABILITIES 766,299,295 951,750 2,696,156 12,458,923 782,406,124 --------------------------------------------------------------------------------- Minority Interest 5,991,467 - 58,270,123 64,261,590 --------------------------------------------------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par - - - 23,480,595 23,480,595 Preferred Shares $0.01 Par Capital Contributed in Excess of Par - - - 407,738,529 407,738,529 Restricted Stock - - - (3,901,106) (3,901,106) Other Comprehensive Income - - - (1,928,590) (1,928,590) Retained Earnings (Distributions in Excess of Net Income) - - - 116,946,045 116,946,045 --------------------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY - - - 542,335,473 542,335,473 --------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 772,290,762 $ 951,750 $ 2,696,156 $613,064,519 $1,389,003,187 =================================================================================
(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 September 30, 2004 and December 31, 2003 includes $8,102,171 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. (3) Includes value of acquired in-place leases and above-market value of leases recorded in connection with the acquisition of properties since 2002. 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. PAGE 6 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) INCOME STATEMENT(1) QUARTERLY COMPARISON (Wholly Owned vs. JV)
Q3 04 (3 MONTHS ENDED 9/30/04) ------------------------------------------------------------------------------------ ------- COMBINED TOTAL % WHOLLY OWNED JVS CORPORATE TOTAL CHANGE ------------------------------------------------------------------------------------ ------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ 65,449,814 $ 5,171,295 $ - 70,621,109 95.9% Straight-Lining of Base Rents 1,269,053 853 - 1,269,906 65.9% Percentage Rents 1,820,100 53,063 - 1,873,163 243.9% Expense Reimbursables 32,088,954 1,335,661 33,424,615 113.0% Lease Termination 1,690,536 - - 1,690,536 N/A Other Real Estate Revenues 2,254,180 18,637 - 2,272,817 173.4% ------------------------------------------------------------------------------------ ------- TOTAL REVENUES 104,572,637 94% 6,579,509 6% $ - 0% 111,152,146 106.1% ------------------------------------------------------------------------------------ ------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 30,934,256 1,360,094 - 32,294,350 110.1% Real Estate Taxes 9,283,616 710,170 - 9,993,786 79.2% ------------------------------------------------------------------------------------ ------- TOTAL EXPENSES 40,217,872 95% 2,070,264 5% - 0% 42,288,136 101.9% ------------------------------------------------------------------------------------ ------- NET OPERATING INCOME 64,354,765 93% 4,509,245 7% - 0% 68,864,010 108.8% ==================================================================================== ======= OTHER INCOME (EXPENSES) Management Company Revenue - - 1,831,296 1,831,296 24.1% Interest and Other Income - - 179,562 179,562 -17.3% GENERAL & ADMINISTRATIVE: Corporate Payroll and Benefits - - (7,335,945) (7,335,945) 71.6% Other G&A Expenses - - (4,199,168) (4,199,168) 3.7% ------------------------------------------------------------------------------------ ------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 64,354,765 108% 4,509,245 8% (9,524,255) -16% 59,339,755 125.3% ==================================================================================== ======= Interest Expense (2)(3) (17,062,052) (2,010,883) (2,066,196) (21,139,131) 84.4% Depreciation & Amortization (22,683,695) (1,002,577) - (23,686,272) 131.6% ------------------------------------------------------------------------------------ ------- TOTAL OTHER INCOME (EXPENSES) (39,745,747) (3,013,460) (2,066,196) (44,825,403) 106.6% ------------------------------------------------------------------------------------ ------- Gains (loss) on sales of interests in Real Estate 1,529,183 - 1,529,183 N/A ------------------------------------------------------------------------------------ ------- Income before Minority Interest 24,609,018 3,024,968 (11,590,451) 16,043,535 47.5% ------------------------------------------------------------------------------------ ------- Minority Interest in Properties (53,268) - (53,268) N/A Minority Interest of O.P. Unitholders - - (1,525,300) (1,525,300) 54.2% ------------------------------------------------------------------------------------ ------- Income from Operations 24,555,750 3,024,968 (13,115,751) 14,464,967 51.0% ------------------------------------------------------------------------------------ ------- DISCONTINUED OPERATIONS: Income from Disposed Real Estate - - N/A Minority Interest of O.P. Unitholders (197,095) (197,095) N/A Gain (loss) on Disposition of Discontinued Operations - - - N/A ------------------------------------------------------------------------------------ ------- TOTAL DISCONTINUED OPERATIONS - - (197,095) (197,095) N/A ------------------------------------------------------------------------------------ ------- Extraordinary item (Loss on early extinguishment of debt) - - N/A ------------------------------------------------------------------------------------ ------- NET INCOME $ 24,555,750 172% $ 3,024,968 21% $(13,312,846) -93% $ 14,267,872 -59.1% ==================================================================================== =======
Q3 03 (3 MONTHS ENDED 9/30/03) --------------------------------------------------------------------------------- COMBINED WHOLLY OWNED JVS CORPORATE TOTAL --------------------------------------------------------------------------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $ 29,575,266 $ 6,479,632 $ - $ 36,054,898 Straight-Lining of Base Rents 685,050 80,188 - 765,238 Percentage Rents 469,398 75,212 - 544,610 Expense Reimbursables 13,553,160 2,142,618 15,695,778 Lease Termination 29,393 - - 29,393 Other Real Estate Revenues 652,773 178,531 - 831,304 --------------------------------------------------------------------------------- TOTAL REVENUES 44,965,040 83% 8,956,181 17% $ - 0% 53,921,221 --------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 12,890,086 2,480,268 - 15,370,354 Real Estate Taxes 4,768,784 807,631 - 5,576,415 --------------------------------------------------------------------------------- TOTAL EXPENSES 17,658,870 84% 3,287,899 16% - 0% 20,946,769 --------------------------------------------------------------------------------- NET OPERATING INCOME 27,306,170 83% 5,668,282 17% - 0% 32,974,452 ================================================================================= OTHER INCOME (EXPENSES) Management Company Revenue - - 1,475,135 1,475,135 Interest and Other Income - - 217,023 217,023 GENERAL & ADMINISTRATIVE: Corporate Payroll and Benefits - - (4,274,156) (4,274,156) Other G&A Expenses - - (4,049,052) (4,049,052) --------------------------------------------------------------------------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 27,306,170 104% 5,668,282 22% (6,631,050) -25% 26,343,402 ================================================================================= Interest Expense (2)(3) (8,314,940) (3,150,646) - (11,465,586) Depreciation & Amortization (9,191,800) (1,034,646) (10,226,446) --------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (17,506,740) (4,185,292) - (21,692,032) --------------------------------------------------------------------------------- Gains (loss) on sales of interests in Real Estate - 6,228,839 - 6,228,839 --------------------------------------------------------------------------------- Income before Minority Interest 9,799,430 7,711,829 (6,631,050) 10,880,209 --------------------------------------------------------------------------------- Minority Interest in Properties (310,751) - - (310,751) Minority Interest of O.P. Unitholders - - (989,253) (989,253) --------------------------------------------------------------------------------- Income from Operations 9,488,679 7,711,829 (7,620,303) 9,580,205 --------------------------------------------------------------------------------- DISCONTINUED OPERATIONS: Income from Disposed Real Estate - - - Minority Interest of O.P. Unitholders (2,382,461) (2,382,461) Gain (loss) on Disposition of Discontinued Operations 27,725,759 27,725,759 --------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS 27,725,759 (2,382,461) 25,343,298 --------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - --------------------------------------------------------------------------------- NET INCOME $ 37,214,438 107% $ 7,711,829 22% $(10,002,764) -29% $ 34,923,503 =================================================================================
(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 of $418,715 is not included in the quarter ended 9/30/04 and $324,187 is not included in the quarter ended 9/30/03. (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 (SEPTEMBER 30, 2004) INCOME STATEMENT (1) QUARTERLY COMPARISON (Line of Business)
Q3 04 (3 MONTHS ENDED 9/30/04) --------------------------------------------------------------------------------------------- OTHER COMBINED TOTAL % RETAIL PROPERTIES CORPORATE TOTAL CHANGE --------------------------------------------------------------------------------------------- REAL ESTATE OPERATING REVENUES Base Rents $ 70,535,953 $ 85,156 $ - $ 70,621,109 95.5% Less Vacancies and Concessions - - - N/A Straight-Lining of Base Rents 1,269,906 - - 1,269,906 65.9% Percentage Rents 1,873,163 - - 1,873,163 243.9% Expense Reimbursables 33,411,645 12,970 33,424,615 113.0% Lease Termination 1,690,536 - - 1,690,536 N/A Other Real Estate Revenues 2,272,817 - - 2,272,817 173.4% --------------------------------------------------------------------------------------------- TOTAL REVENUES 111,054,020 100% 98,126 0% - - 111,152,146 106.1% --------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 32,290,920 3,430 - 32,294,350 110.1% Real Estate Taxes 9,983,666 10,120 - 9,993,786 79.2% --------------------------------------------------------------------------------------------- TOTAL EXPENSES 42,274,586 100% 13,550 0% - - 42,288,136 101.9% --------------------------------------------------------------------------------------------- NET OPERATING INCOME 68,779,434 100% 84,576 0% - - 68,864,010 108.8% ============================================================================================= OTHER INCOME (EXPENSES) Management Company Revenue - - 1,831,296 1,831,296 24.1% Interest and Other Income - - 179,562 179,562 -17.3% GENERAL AND ADMINISTRATIVE: Corporate Payroll and Benefits - - (7,335,945) (7,335,945) 71.6% Other General & Administrative - - (4,199,168) (4,199,168) 3.7% --------------------------------------------------------------------------------------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 68,779,434 116% 84,576 0% (9,524,255) -16% 59,339,755 125.3% ============================================================================================= Interest Expense (2)(3) (19,072,935) - (2,066,196) (21,139,131) 84.4% Depreciation & Amortization (23,673,732) (12,540) - (23,686,272) 131.6% --------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (42,746,667) (12,540) (2,066,196) (44,825,403) 106.6% --------------------------------------------------------------------------------------------- Gains (loss) on sales of interests in Real Estate 1,529,183 - - 1,529,183 N/A --------------------------------------------------------------------------------------------- Income before Minority Interest 27,561,950 72,036 (11,590,451) 16,043,535 47.5% --------------------------------------------------------------------------------------------- Minority Interest in Properties (53,268) - (53,268) --------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders - - (1,523,300) (1,525,300) 54.2% --------------------------------------------------------------------------------------------- Income from Operations 27,508,682 72,036 (13,115,751) 14,464,967 51.0% --------------------------------------------------------------------------------------------- DISCONTINUED OPERATIONS: Income from Disposed Real Estate - - - N/A Minority Interest of O.P. Unitholders (197,095) (197,095) N/A Gain (loss) on Disposition of Discontinued Operations - - N/A --------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - - (197,095) (197,095) N/A --------------------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - - N/A --------------------------------------------------------------------------------------------- NET INCOME $ 27,508,682 193% $ 72,036 1% $(13,312,846) -93% $ 14,267,872 -59.1% =============================================================================================
Q3 03 (3 MONTHS ENDED 9/30/03) --------------------------------------------------------------------------------------------- OTHER COMBINED RETAIL MULTIFAMILY PROPERTIES CORPORATE TOTAL -------------------------------------------------------------------------------------------- REAL ESTATE OPERATING REVENUES Base Rents $ 34,709,773 $ 1,336,316 $ 85,156 $ - $ 36,131,245 Less Vacancies and Concessions - (76,347) - - (76,347) Straight-Lining of Base Rents 765,238 - - - 765,238 Percentage Rents 544,610 - - - 544,610 Expense Reimbursables 15,693,153 - 2,625 - 15,695,778 Lease Termination 27,129 2,264 - 29,393 Other Real Estate Revenues 761,961 69,343 - - 831,304 -------------------------------------------------------------------------------------------- TOTAL REVENUES 52,501,864 97% 1,331,576 2% 87,781 0% - - 53,921,221 --------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 14,731,058 636,314 2,982 - 15,370,354 Real Estate Taxes 5,499,341 76,172 902 - 5,576,415 -------------------------------------------------------------------------------------------- TOTAL EXPENSES 20,230,399 97% 712,486 3% 3,884 0% - - 20,946,769 -------------------------------------------------------------------------------------------- NET OPERATING INCOME 32,271,465 98% 619,090 2% 83,897 0% - - 32,974,452 ============================================================================================ OTHER INCOME (EXPENSES) Management Company Revenue - - - 1,475,135 1,475,135 Interest and Other Income - - - 217,023 217,023 GENERAL AND ADMINISTRATIVE: - - Corporate Payroll and Benefits - - - (4,274,156) (4,274,156) Other General & Administrative - - - (4,049,052) (4,049,052) -------------------------------------------------------------------------------------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 32,271,465 123% 619,090 2% 83,897 0% (6,631,050) -25% 26,343,402 ============================================================================================ Interest Expense (2)(3) (11,243,044) (222,542) - - (11,465,586) Depreciation & Amortization (10,213,658) - (12,788) - (10,226,446) -------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (21,456,702) (222,542) (12,788) - (21,692,032) -------------------------------------------------------------------------------------------- Gains (loss) on sales of interests in Real Estate - 6,228,839 - 6,228,839 -------------------------------------------------------------------------------------------- Income before Minority Interest 10,814,763 6,625,387 71,109 (6,631,050) 10,880,209 -------------------------------------------------------------------------------------------- Minority Interest in Properties (310,751) (310,751) -------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders - - - (989,253) (989,253) -------------------------------------------------------------------------------------------- Income from Operations 10,504,012 6,625,387 71,109 (7,620,303) 9,580,205 -------------------------------------------------------------------------------------------- DISCONTINUED OPERATIONS: Income from Disposed Real Estate - - - - Minority Interest of O.P. Unitholders - - - (2,382,461) (2,382,461) Gain (loss) on Disposition of Discontinued Operations - 27,725,759 - - 27,725,759 -------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - 27,725,759 - (2,382,461) 25,343,298 -------------------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - - - -------------------------------------------------------------------------------------------- NET INCOME $ 10,504,012 30% $34,351,146 98% $ 71,109 0% $(10,002,764) -29% $ 34,923,503 ============================================================================================
(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 of $418,715 is not included in the quarter ended 9/30/04 and $324,187 is not included in the quarter ended 9/30/03. (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 (SEPTEMBER 30, 2004) RETAIL INCOME STATEMENT (1) QUARTERLY COMPARISON (Property Status)
Q3 04 (3 MONTHS ENDED 9/30/04) ----------------------------------------------------------------------------------------- COMBINED % CHANGE % CHANGE % CHANGE TOTAL WO JVS TOTAL WO JVS ----------------------------------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 70,535,953 $ 65,364,658 $ 5,171,295 103.2% 128.9% -15.9% Straight-Lining of Base Rents 1,269,906 1,269,053 853 65.9% 85.2% -98.9% Percentage Rents 1,873,163 1,820,100 53,063 243.9% 287.8% -29.4% Expense Reimbursables 33,411,645 32,075,984 1,335,661 112.9% 136.7% -37.7% Lease Termination and Other Income 1,690,536 1,690,536 - N/A N/A N/A Other Real Estate Revenues 2,272,817 2,254,180 18,637 198.3% 281.3% -89.1% ----------------------------------------------------------------------------------------- TOTAL REVENUES 111,054,020 104,474,511 94% 6,579,509 6% 111.5% 138.1% -23.6% ----------------------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 32,290,920 30,930,826 1,360,094 119.2% 148.7% -40.7% Real Estate Taxes 9,983,666 9,273,496 710,170 81.5% 96.3% -8.2% ----------------------------------------------------------------------------------------- Total Operating Expenses 42,274,586 40,204,322 95% 2,070,264 5% 109.0% 134.2% -32.5% ========================================================================================= NET OPERATING INCOME 68,779,434 64,270,189 93% 4,509,245 7% 113.1% 140.5% -18.8% ========================================================================================= OTHER INCOME (EXP.) Interest Expense (19,072,935) (17,062,052) (2,010,883) 69.6% 109.5% -35.1% Depreciation & Amortization (23,673,732) (22,671,155) (1,002,577) 131.8% 147.0% -3.1% ----------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (42,746,667) (39,733,207) (3,013,460) 99.2% 129.4% -27.1% ----------------------------------------------------------------------------------------- Gains (loss) on sales of int. in R.E 1,529,183 - 1,529,183 N/A N/A N/A ----------------------------------------------------------------------------------------- Income before Minority Int. 27,561,950 24,536,982 3,024,968 154.9% 161.1% 113.3% ----------------------------------------------------------------------------------------- Minority Interest in Properties (53,268) (53,268) -82.9% -82.9% N/A ----------------------------------------------------------------------------------------- DISCONTINUED OPERATIONS: - ----------------------------------------------------------------------------------------- Income from Disposed Real Estate - - N/A N/A N/A ----------------------------------------------------------------------------------------- Gain (loss) 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 $ 27,508,682 $ 24,536,982 89% $ 3,024,968 11% 161.9% 170.1% 113.3% =========================================================================================
(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.
Q3 03 (3 MONTHS ENDED 9/30/03) -------------------------------------------------------- COMBINED TOTAL WO JVS -------------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 34,709,773 $ 28,561,011 $ 6,148,762 Straight-Lining of Base Rents 765,238 685,050 80,188 Percentage Rents 544,610 469,398 75,212 Expense Reimbursables 15,693,153 13,550,535 2,142,618 Lease Termination and Other Income 27,129 27,129 - Other Real Estate Revenues 761,961 591,246 170,715 -------------------------------------------------------- TOTAL REVENUES 52,501,864 43,884,369 84% 8,617,495 16% -------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 14,731,058 12,437,946 2,293,112 Real Estate Taxes 5,499,341 4,725,346 773,995 -------------------------------------------------------- Total Operating Expenses 20,230,399 17,163,292 85% 3,067,107 15% ======================================================== NET OPERATING INCOME 32,271,465 26,721,077 83% 5,550,388 17% ======================================================== OTHER INCOME (EXP.) Interest Expense (11,243,044) (8,145,244) (3,097,800) Depreciation & Amortization (10,213,658) (9,179,012) (1,034,646) -------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (21,456,702) (17,324,256) (4,132,446) -------------------------------------------------------- Gains (loss) on sales of int. in R.E - - - -------------------------------------------------------- Income before Minority Int. 10,814,763 9,396,821 1,417,942 -------------------------------------------------------- Minority Interest in Properties (310,751) (310,751) - -------------------------------------------------------- DISCONTINUED OPERATIONS: - -------------------------------------------------------- Income from Disposed Real Estate - -------------------------------------------------------- Gain (loss) on Disposition of Discontinued Operations -------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - - - -------------------------------------------------------- Extraordinary item (Loss on early extinguishments of debt) - - - -------------------------------------------------------- NET INCOME $ 10,504,012 $ 9,086,070 87% $ 1,417,942 13% ========================================================
SAME STORE COMPARISON
Q3 04 (3 MONTHS ENDED 9/30/04) ---------------------------------------------------------------------------- COMBINED TOTAL SAME NEW REDEV ---------------------------------------------------------------------------- Base Rents $ 70,535,953 $ 30,490,740 $ 37,767,097 $ 2,202,072 Straight-Lining of Base Rents 1,269,906 328,156 930,658 12,129 Percentage Rents 1,873,163 438,987 1,307,831 126,345 Expense Reimbursables 33,411,645 14,441,445 17,438,279 1,508,529 Lease Termination 1,690,536 1,579,492 111,044 - Other Real Estate Revenues 2,272,817 707,317 1,444,029 121,471 ---------------------------------------------------------------------------- TOTAL REVENUES 111,054,020 47,986,137 43% 58,998,938 53% 3,970,546 4% ---------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 32,290,920 12,195,309 19,139,887 949,779 Real Estate Taxes 9,983,666 4,586,370 5,123,509 260,253 ---------------------------------------------------------------------------- Total Operating Expenses 42,274,586 16,781,678 40% 24,263,395 57% 1,210,032 3% ============================================================================ NET OPERATING INCOME 68,779,434 31,204,459 45% 34,735,543 51% 2,760,514 4% ============================================================================ OTHER INCOME (EXP.) Interest Expense (19,072,935) (8,406,114) (9,891,052) (775,769) Depreciation & Amortization (23,673,732) (9,909,805) (13,291,311) (436,280) ---------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (42,746,667) (18,315,919) (23,182,363) (1,212,049) ---------------------------------------------------------------------------- Gain (loss) on sales of int. in R.E. 1,529,183 - - - ---------------------------------------------------------------------------- Income before Minority Int. 27,561,950 12,888,540 11,553,180 1,548,465 ---------------------------------------------------------------------------- Minority Interest in Properties (53,268) (53,268) DISCONTINUED OPERATIONS: Income from Disposed Real Estate - - - - Gain (loss) on Disposition of Discontinued Operations - - - - ---------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - - ---------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - - ---------------------------------------------------------------------------- NET INCOME $ 27,508,682 $ 12,888,540 47% $ 11,499,912 42% $ 1,548,465 6% ============================================================================ ------------------------------ % CHANGE DIVEST SAME STORE ------------------------------ Base Rents $ 76,044 -0.8% Straight-Lining of Base Rents (1,037) -52.0% Percentage Rents - 1.1% Expense Reimbursables 23,393 8.0% Lease Termination - N/A Other Real Estate Revenues - 49.5% ------------------------------ TOTAL REVENUES 98,400 0% 4.9% ------------------------------ R.E. OPERATING EXPENSES Operating and Maintenance 5,946 -2.7% Real Estate Taxes 13,535 -9.2% ------------------------------ Total Operating Expenses 19,481 0% -4.6% ============================== NET OPERATING INCOME 78,919 0% 10.8% ============================== OTHER INCOME (EXP.) Interest Expense - -9.3% Depreciation & Amortization (36,337) 9.5% ------------------------------ TOTAL OTHER INCOME (EXP.) (36,337) -0.1% ------------------------------ Gain (loss) on sales of int. in R.E. 1,529,183 N/A ------------------------------ Income before Minority Int. 1,571,765 31.1% ------------------------------ Minority Interest in Properties DISCONTINUED OPERATIONS: Income from Disposed Real Estate - N/A Gain (loss) on Disposition of Discontinued Operations - N/A ------------------------------ TOTAL DISCONTINUED OPERATIONS N/A ------------------------------ Extraordinary item (Loss on early extinguishment of debt) - N/A ------------------------------ NET INCOME $1,571,765 6% 35.4% ==============================
Q3 03 (3 MONTHS ENDED 9/30/03) ---------------------------------------------------------------------------------------- COMBINED TOTAL SAME NEW REDEV DIVEST ---------------------------------------------------------------------------------------- Base Rents $ 34,709,773 $ 30,745,210 $ 1,749,382 $ 2,090,398 $ 124,783 Straight-Lining of Base Rents 765,238 683,469 41,133 42,395 (1,759) Percentage Rents 544,610 434,415 (16,360) 126,555 - Expense Reimbursables 15,693,153 13,375,916 1,324,243 937,843 55,151 Lease Termination 27,129 27,129 - - - Other Real Estate Revenues 761,961 473,020 180,493 108,448 - ---------------------------------------------------------------------------------------- TOTAL REVENUES 52,501,864 45,739,159 87% 3,278,891 6% 3,305,639 6% 178,175 ---------------------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 14,731,058 12,531,102 1,197,989 960,361 41,606 Real Estate Taxes 5,499,341 5,053,378 191,071 236,912 17,980 ---------------------------------------------------------------------------------------- Total Operating Expenses 20,230,399 17,584,480 87% 1,389,060 7% 1,197,273 6% 59,586 ======================================================================================== NET OPERATING INCOME 32,271,465 28,154,679 87% 1,889,831 6% 2,108,366 7% 118,589 ======================================================================================== OTHER INCOME (EXP.) Interest Expense (11,243,044) (9,273,022) (1,184,423) (785,599) - Depreciation & Amortization (10,213,658) (9,053,941) (443,316) (659,919) (56,482) ---------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (21,456,702) (18,326,963) (1,627,739) (1,445,518) (56,482) ---------------------------------------------------------------------------------------- Gain (loss) on sales of int. in R.E. - - - ---------------------------------------------------------------------------------------- Income before Minority Int. 10,814,763 9,827,716 262,092 662,848 62,107 ---------------------------------------------------------------------------------------- Minority Interest in Properties (310,751) (310,751) - - - DISCONTINUED OPERATIONS: Income from Disposed Real Estate - - - - Gain (loss) on Disposition of Discontinued Operations ---------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - 62,107 ---------------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - - - ---------------------------------------------------------------------------------------- NET INCOME $ 10,504,012 $ 9,516,965 91% $ 262,092 2% $ 662,848 6% $ 62,107 ========================================================================================
NOTE: RECONCILIATION TO GAAP IS ON PAGES 32 TO 35. PAGE 9 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) RETAIL INCOME STATEMENT (1) QUARTERLY COMPARISON (Property Subtype)
Q3 04 (3 MONTHS ENDED 9/30/04) -------------------------------------------------------------------------- COMBINED ENCLOSED POWER STRIP TOTAL MALL CENTER CENTER -------------------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 70,535,953 $ 62,371,864 $ 6,626,030 $1,538,059 Straight-Lining of Base Rents 1,269,906 1,101,917 168,125 (136) Percentage Rents 1,873,163 1,840,385 32,778 - Expense Reimbursables 33,411,645 32,034,613 1,005,232 371,800 Lease Termination and Other Income 1,690,536 190,536 1,500,000 - Other Real Estate Revenues 2,272,817 2,259,522 9,426 3,869 -------------------------------------------------------------------------- TOTAL REVENUES 111,054,020 99,798,837 90% 9,341,591 8% 1,913,592 2% -------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 32,290,920 31,295,781 668,810 326,329 Real Estate Taxes 9,983,666 9,057,824 715,430 210,412 -------------------------------------------------------------------------- Total Operating Expenses 42,274,586 40,353,605 95% 1,384,240 3% 536,741 1% ========================================================================== NET OPERATING INCOME 68,779,434 59,445,232 86% 7,957,351 12% 1,376,851 2% ========================================================================== OTHER INCOME (EXP.) Interest Expense (19,072,935) (17,418,870) (1,617,897) (36,168) Depreciation & Amortization (23,673,732) (21,067,670) (2,099,910) (506,152) -------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (42,746,667) (38,486,540) (3,717,807) (542,320) -------------------------------------------------------------------------- Gains (loss) on sales of int. in R.E. 1,529,183 - - 1,529,183 -------------------------------------------------------------------------- Income before Minority Int. 27,561,950 20,958,692 4,239,544 2,363,714 -------------------------------------------------------------------------- Minority Interest in Properties (53,268) (53,268) - - -------------------------------------------------------------------------- DISCONTINUED OPERATIONS: -------------------------------------------------------------------------- Income from Disposed Real Estate - - - -------------------------------------------------------------------------- Gain (loss) on Disposition of Discontinued Operations - -------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - - - - -------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - - -------------------------------------------------------------------------- NET INCOME $ 27,508,682 $ 20,905,424 76% $ 4,239,544 15% $2,363,714 9% ========================================================================== ------------------------------------------------------ % CHANGE % CHANGE % CHANGE % CHANGE TOTAL ENCLOSED MALL POWER CENTER STRIP CENTER ------------------------------------------------------ R.E. OPERATING REVENUES Base Rents 103.2% 134.6% 0.7% -0.5% Straight-Lining of Base Rents 65.9% 90.8% 3.4% -100.5% Percentage Rents 243.9% 280.3% -46.0% N/A Expense Reimbursables 112.9% 127.5% -13.4% -17.8% Lease Termination and Other Income N/A N/A N/A N/A Other Real Estate Revenues 198.3% 207.6% -60.4% 5.7% ------------------------------------------------------ TOTAL REVENUES 111.5% 134.9% 17.0% -5.6% ------------------------------------------------------ R.E. OPERATING EXPENSES Operating and Maintenance 119.2% 129.0% -11.9% 5.9% Real Estate Taxes 81.5% 97.8% -0.6% 5.6% ------------------------------------------------------ Total Operating Expenses 109.0% 121.2% -6.4% 5.8% ====================================================== NET OPERATING INCOME 113.1% 145.2% 22.3% -9.4% ====================================================== OTHER INCOME (EXP.) Interest Expense 69.6% 102.3% -37.7% -3.1% Depreciation & Amortization 131.8% 168.0% 9.4% 16.8% ------------------------------------------------------ TOTAL OTHER INCOME (EXP.) 99.2% 133.7% -17.6% 15.2% ------------------------------------------------------ Gains (loss) on sales of int. in R.E. N/A N/A N/A N/A ------------------------------------------------------ Income before Minority Int. 154.9% 169.7% 112.6% 125.3% ------------------------------------------------------ Minority Interest in Properties -82.9% -82.9% N/A N/A ------------------------------------------------------ DISCONTINUED OPERATIONS: ------------------------------------------------------ Income from Disposed Real Estate N/A N/A N/A N/A ------------------------------------------------------ Gain (loss) 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 161.9% 180.2% 112.6% 125.3% ======================================================
Q3 03 (3 MONTHS ENDED 9/30/03) -------------------------------------------------------------------------- COMBINED ENCLOSED POWER STRIP TOTAL MALL CENTER CENTER -------------------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 34,709,773 $ 26,583,847 $ 6,579,724 $1,546,202 Straight-Lining of Base Rents 765,238 577,623 162,538 25,077 Percentage Rents 544,610 483,902 60,708 - Expense Reimbursables 15,693,153 14,080,371 1,160,230 452,552 Lease Termination and Other Income 27,129 27,129 - - Other Real Estate Revenues 761,961 734,498 23,801 3,662 -------------------------------------------------------------------------- TOTAL REVENUES 52,501,864 42,487,370 81% 7,987,001 15% 2,027,493 4% -------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 14,731,058 13,664,046 758,724 308,288 Real Estate Taxes 5,499,341 4,580,098 719,987 199,256 -------------------------------------------------------------------------- Total Operating Expenses 20,230,399 18,244,144 90% 1,478,711 7% 507,544 3% ========================================================================== NET OPERATING INCOME 32,271,465 24,243,226 75% 6,508,290 20% 1,519,949 5% ========================================================================== OTHER INCOME (EXP.) Interest Expense (11,243,044) (8,610,780) (2,594,953) (37,311) Depreciation & Amortization (10,213,658) (7,860,605) (1,919,598) (433,455) -------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (21,456,702) (16,471,385) (4,514,551) (470,766) -------------------------------------------------------------------------- Gains (loss) on sales of int. in R.E. - - - - -------------------------------------------------------------------------- Income before Minority Int. 10,814,763 7,771,841 1,993,739 1,049,183 -------------------------------------------------------------------------- Minority Interest in Properties (310,751) (310,751) - - -------------------------------------------------------------------------- DISCONTINUED OPERATIONS: -------------------------------------------------------------------------- Income from Disposed Real Estate - - - -------------------------------------------------------------------------- Gain (loss) on Disposition of Discontinued Operations -------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - - - - -------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - - -------------------------------------------------------------------------- NET INCOME $ 10,504,012 $ 7,461,090 71% $ 1,993,739 19% $1,049,183 10% ==========================================================================
SAME STORE COMPARISON
Q3 04 (3 MONTHS ENDED 9/30/04) ------------------------------------------------------------------------- COMBINED ENCLOSED POWER STRIP TOTAL MALL CENTER CENTER ------------------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 30,490,740 $ 22,402,695 $ 6,626,030 $1,462,015 Straight-Lining of Base Rents 328,156 159,130 168,125 901 Percentage Rents 438,987 406,209 32,778 - Expense Reimbursables 14,441,445 13,087,806 1,005,232 348,407 Lease Termination 1,579,492 79,492 1,500,000 - Other Real Estate Revenues 707,317 694,022 9,426 3,869 ------------------------------------------------------------------------- TOTAL REVENUES 47,986,137 36,829,354 77% 9,341,591 19% 1,815,192 4% ------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 12,195,309 11,206,116 668,810 320,383 Real Estate Taxes 4,586,370 3,674,063 715,430 196,877 ------------------------------------------------------------------------- Total Operating Expenses 16,781,678 14,880,178 89% 1,384,240 8% 517,260 3% ========================================================================= NET OPERATING INCOME 31,204,459 21,949,176 70% 7,957,351 26% 1,297,932 4% ========================================================================= OTHER INCOME (EXP.) Interest Expense (8,406,114) (6,752,049) (1,617,897) (36,168) Depreciation & Amortization (9,909,805) (7,340,080) (2,099,910) (469,815) ------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (18,315,919) (14,092,129) (3,717,807) (505,983) ------------------------------------------------------------------------- Gain (loss) on sales of int. in R.E - - - - ------------------------------------------------------------------------- Income before Minority Int. 12,888,540 7,857,047 4,239,544 791,949 ------------------------------------------------------------------------- Minority Interest in Properties - - - - ------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - - ------------------------------------------------------------------------- NET INCOME $ 12,888,540 $ 7,857,047 61% $ 4,239,544 33% $ 791,949 6% ========================================================================= -------------------------------------------------------- % CHANGE % CHANGE % CHANGE % CHANGE TOTAL (1) ENCLOSED MALL POWER CENTER STRIP CENTER -------------------------------------------------------- R.E. OPERATING REVENUES Base Rents -0.8% -1.5% 0.7% 2.9% Straight-Lining of Base Rents -52.0% -67.8% 3.4% -96.6% Percentage Rents 1.1% 8.7% -46.0% N/A Expense Reimbursables 8.0% 10.7% -13.4% -12.3% Lease Termination N/A N/A N/A N/A Other Real Estate Revenues 49.5% 55.8% -60.4% 5.7% -------------------------------------------------------- TOTAL REVENUES 4.9% 2.6% 17.0% -1.8% -------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance -2.7% -2.6% -11.9% 20.1% Real Estate Taxes -9.2% -11.5% -0.6% 8.6% -------------------------------------------------------- Total Operating Expenses -4.6% -5.0% -6.4% 15.5% ======================================================== NET OPERATING INCOME 10.8% 8.4% 22.3% -7.4% ======================================================== OTHER INCOME (EXP.) Interest Expense -9.3% 1.4% -37.2% -3.1% Depreciation & Amortization 9.5% 8.6% 9.4% 24.6% -------------------------------------------------------- TOTAL OTHER INCOME (EXP.) -0.1% 5.0% -17.3% 22.1% -------------------------------------------------------- Gain (loss) on sales of int. in R.E N/A N/A N/A N/A -------------------------------------------------------- Income before Minority Int. 35.4% 20.6% 110.5% -19.8% -------------------------------------------------------- Minority Interest in Properties -------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) -------------------------------------------------------- NET INCOME 35.4% 20.6% 110.5% -19.8% ========================================================
Q3 03 (3 MONTHS ENDED 9/30/03) --------------------------------------------------------------------------- COMBINED ENCLOSED POWER STRIP TOTAL MALL CENTER CENTER --------------------------------------------------------------------------- R.E. OPERATING REVENUES Base Rents $ 30,745,210 $ 22,744,067 $ 6,579,724 $1,421,419 Straight-Lining of Base Rents 683,469 494,095 162,538 26,836 Percentage Rents 434,415 373,707 60,708 - Expense Reimbursables 13,375,916 11,818,285 1,160,230 397,401 Lease Termination 27,129 27,129 - - Other Real Estate Revenues 473,020 445,557 23,801 3,662 --------------------------------------------------------------------------- TOTAL REVENUES 45,739,159 35,902,840 78% 7,987,001 17% 1,849,318 4% --------------------------------------------------------------------------- R.E. OPERATING EXPENSES Operating and Maintenance 12,531,102 11,505,696 758,724 266,682 Real Estate Taxes 5,053,378 4,152,115 719,987 181,276 --------------------------------------------------------------------------- Total Operating Expenses 17,584,480 15,657,811 89% 1,478,711 8% 447,958 3% =========================================================================== NET OPERATING INCOME 28,154,679 20,245,029 72% 6,508,290 23% 1,401,360 5% =========================================================================== OTHER INCOME (EXP.) Interest Expense (9,273,022) (6,660,803) (2,574,908) (37,311) Depreciation & Amortization (9,053,941) (6,757,370) (1,919,598) (376,973) --------------------------------------------------------------------------- TOTAL OTHER INCOME (EXP.) (18,326,963) (13,418,173) (4,494,506) (414,284) --------------------------------------------------------------------------- (310,751) (310,751) - - Gain (loss) on sales of int. in R.E - - - - --------------------------------------------------------------------------- Income before Minority Int. 9,516,965 6,516,105 2,013,784 987,076 --------------------------------------------------------------------------- Minority Interest in Properties --------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - --------------------------------------------------------------------------- NET INCOME $ 9,516,965 $ 6,516,105 68% $ 2,013,784 21% $ 987,076 10% ===========================================================================
(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 (SEPTEMBER 30, 2004)
FUNDS FROM OPERATIONS (1) Q3:9/30/04 % CHANGE Q3:9/30/03 ------------ -------- ------------ NET INCOME $ 14,267,872 -59.1% $ 34,923,503 Dividends on preferred shares (3,403,125) - ------------ ------------ NET INCOME ALLOCABLE TO COMMON SHAREHOLDERS $ 10,864,747 -68.9% $ 34,923,503 Minority Interest in Operating Partnership-continuing operations 1,525,300 54.2% 989,253 Minority Interest in Operating Partnership-discontinued operations 197,095 N/A 2,382,461 (Gain) losses on sales of interests in real estate (1,529,183) N/A (6,228,839) (Gain) losses on disposition of discontinued operations - N/A (27,725,759) Depreciation & Amortization: (2) Wholly owned and consolidated partnerships 22,561,595 147.2% 9,126,800 Unconsolidated partnerships and joint ventures 1,002,577 -3.1% 1,034,646 Discontinued operations - N/A - ------------ -------- ------------ FFO $ 34,622,131 138.7% $ 14,502,065 ------------ -------- ------------ Weighted Average Shares and O.P. Units Outstanding 40,131,231 86.3% 21,537,479 ------------ -------- ------------ NET INCOME PER SHARE (BASIC) $ 0.30 -83.0% $ 1.79 ------------ -------- ------------ FFO PER SHARE $ 0.86 28.1% $ 0.67 ------------ -------- ------------ FUNDS AVAILABLE FOR DISTRIBUTION FFO $ 34,622,131 138.7% $ 14,502,065 Adjustments: Straight-lining of base rents (1,269,906) 65.9% (765,238) Recurring capital expenditures (2,812,227) 1117.0% (231,073) Tenant allowances (1,349,309) N/A (591,471) Amortization of debt premium (4,829,622) 177.2% (1,742,283) Amortization of above-and below- market lease intangibles 184,590 -22.2% 237,319 ------------ -------- ------------ FAD $ 24,545,657 115.1% $ 11,409,319 ------------ -------- ------------ Weighted Average Shares and O.P. Units Outstanding 40,131,231 86.3% 21,537,479 ------------ -------- ------------ FAD PER SHARE $ 0.61 15.5% $ 0.53 ------------ -------- ------------ PAYOUT RATIOS DIVIDEND PER COMMON SHARE $ 0.54 5.9% $ 0.51 ------------ -------- ------------ PAYOUT RATIO OF NET INCOME PER SHARE (BASIC) 177.4% 149.0% 28.5% ============ ======== ============ PAYOUT RATIO OF FFO 62.6% -13.1% 75.7% ============ ======== ============ PAYOUT RATIO OF FAD 88.3% -8.0% 96.3% ------------ -------- ------------
(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 (SEPTEMBER 30, 2004) KEY RATIOS - --------------------------------------------------------------------------------
Q3: 9/30/2004 Q3: 9/30/2003 ------------- ------------- COVERAGE RATIO (1) Interest Coverage Ratio (EBITDA/Interest Expense) 2.81 2.30 - -------------------------------------------------------------------------------- LEVERAGE RATIOS (1) Debt / Total Market Capitalization 46.6% 46.4% - -------------------------------------------------------------------------------- OPERATING RATIOS (1) NOI/Real Estate Revenues 62.0% 61.2% - -------------------------------------------------------------------------------- RETURN ON INVESTMENT RATIOS (1) Total FFO/Equity Market Capitalization, net of preferred shares 2.2% 1.7% FFO multiple (Closing share price / Annualized FFO per share for quarter) (2) 11.20 12.42 NOI/Total Market Capitalization at Period End 2.2% 2.1% NOI/Investment in Real Estate at Period End 2.7% 2.5% - -------------------------------------------------------------------------------- PAYOUT RATIOS FFO Payout Ratio (Dividend/FFO) per Share 62.6% 75.7% FAD Payout Ratio (Dividend/FAD) per Share 88.3% 96.3% - --------------------------------------------------------------------------------
(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 (SEPTEMBER 30, 2004) DEBT SCHEDULE OF WHOLLY OWNED PROPERTIES
PREIT'S TOTAL PREIT'S PREIT'S PREIT'S OWNERSHIP INVESTMENT INVESTMENT ACCUMULATED DEPRECIATED PROPERTY NAME INTEREST TO DATE TO DATE (1) DEPRECIATION COSTS RETAIL PROPERTIES Beaver Valley Mall 100% $ 55,972,159 $ 55,972,159 $ 3,891,805 $ 52,080,354 Capital City (2) 100% 80,894,855 80,894,855 1,853,156 79,041,699 Chambersburg Mall (2)(3) 89% 34,312,829 34,312,829 831,687 33,481,142 Cherry Hill Mall (4) 100% 203,720,555 203,235,636 7,014,654 196,220,982 Christiana Power I 100% 39,870,034 39,870,034 5,216,670 34,653,364 Creekview 100% 19,076,247 19,076,247 2,628,348 16,447,899 Crest Plaza Shopping Center 100% 16,735,027 16,735,027 1,652,402 15,082,625 Crossroads Mall 100% 31,497,738 31,497,738 933,828 30,563,910 Dartmouth Mall 100% 54,803,660 54,803,660 10,625,859 44,177,801 Echelon Mall 100% 16,561,595 16,561,595 1,662,195 14,899,400 Exton Square Mall (4) 100% 142,919,433 142,919,433 5,465,755 137,453,678 Festival at Exton 100% 18,983,896 18,983,896 2,458,056 16,525,840 Francis Scott Key Mall (3) 89% 60,736,693 60,736,693 1,443,503 59,293,190 Jacksonville Mall (3) 100% 66,049,860 66,049,860 1,664,327 64,385,533 Logan Valley Mall (2)(3) 100% 90,884,823 90,884,823 2,155,944 88,728,879 Lycoming Mall (2)(3) 89% 55,153,561 55,153,561 1,297,766 53,855,795 Magnolia Mall 100% 57,731,701 57,731,701 8,844,860 48,886,841 Moorestown Mall 100% 75,122,895 75,122,895 4,335,310 70,787,585 New River Valley Mall (3) 89% 30,125,727 30,125,727 756,082 29,369,645 Nittany Mall (2)(3) 89% 38,077,289 38,077,289 877,183 37,200,106 North Hanover Mall (2)(3) 89% 28,172,198 28,172,198 716,241 27,455,957 Northeast Tower Center (3) 100% 31,033,171 31,033,171 3,213,078 27,820,093 Northeast Tower Center-Home Depot 100% 13,578,891 13,578,891 1,493,678 12,085,213 Palmer Park Mall 100% 32,309,149 32,309,149 6,436,612 25,872,537 Patrick Henry Mall (3) 89% 106,388,325 106,388,325 2,370,924 104,017,401 Paxton Towne Centre 100% 53,474,759 53,474,759 5,627,477 47,847,282 Phillipsburg Mall (3) 89% 48,663,468 48,663,468 1,184,322 47,479,146 Plymouth Meeting Mall 100% 78,779,367 78,779,367 3,456,588 75,322,779 Schuylkill Mall (2) 100% 8,102,166 8,102,166 - 8,102,166 South Blanding Village 100% 9,502,950 9,502,950 3,343,955 6,158,995 South Mall (2)(3) 89% 26,985,114 26,985,114 670,197 26,314,917 The Commons at Magnolia 100% 9,888,963 9,888,963 1,266,465 8,622,498 The Gallery at Market East I 100% 48,337,428 48,337,428 1,816,438 46,520,990 The Gallery at Market East II 100% 28,032,418 28,032,418 296,455 27,735,963 The Mall at Prince Georges (4) 100% 92,206,946 92,206,946 12,041,942 80,165,004 Uniontown Mall (2)(3) 89% 34,050,853 34,050,853 908,002 33,142,851 Valley Mall 100% 85,412,057 85,412,057 2,395,476 83,016,581 Valley View Mall 100% 59,671,972 59,671,972 1,356,549 58,315,423 Viewmont Mall (2)(3) 89% 76,191,571 76,191,571 1,650,431 74,541,140 Washington Crown Center (2) 89% 42,394,465 42,394,465 1,670,837 40,723,628 Willow Grove Park 100% 172,111,078 172,111,078 10,222,958 161,888,120 Wiregrass Mall (4) 100% 37,230,141 37,230,141 979,361 36,250,780 Wyoming Valley Mall (2)(3) 100% 90,128,607 90,128,607 1,977,878 88,150,729 Westgate Anchor Pad 100% 2,920,710 2,920,710 - 2,920,710 Land held for development 100% 9,542,722 9,542,722 9,542,722 - ------------------------------------------------------------------------------------------------------------------------------ SUB-TOTAL RETAIL PROPERTIES $2,414,340,066 $2,413,855,147 $130,705,254 $2,283,149,893 - ------------------------------------------------------------------------------------------------------------------------------ INDUSTRIAL PROPERTIES ARA Services, Allentown, PA 100% $ 84,610 $ 84,610 $ 81,610 $ 3,000 ARA Services, Pennsauken, NJ 100% 210,473 210,473 170,104 40,369 Interstate Container Corporation 100% 1,802,271 1,802,271 1,513,003 289,268 Sears Roebuck & Co. 100% 406,857 406,857 349,674 57,183 - ------------------------------------------------------------------------------------------------------------------------------ SUB-TOTAL INDUSTRIAL AND LAND PROPERTIES $ 2,504,211 $ 2,504,211 $ 2,114,391 $ 389,820 - ------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR WHOLLY OWNED PROPERTIES $2,416,844,277 $2,416,359,358 $132,819,645 $2,283,539,713 - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR PARTNERSHIPS and JOINT VENTURES $ 269,517,131 $ 133,122,396 $ 31,124,661 $ 101,997,735 - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ CORPORATE/LINE OF CREDIT - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ TOTAL FOR WHOLLY OWNED AND JV PROPERTIES $2,686,361,408 $2,549,481,754 $163,944,306 $2,385,537,448 - ------------------------------------------------------------------------------------------------------------------------------
CURRENT PREIT'S SHARE OF PREIT'S SHARE MORTGAGES O/S MORTGAGE DEBT AND PREIT'S SHARE OF MORTGAGE INTEREST PROPERTY NAME MORTGAGE DEBT PREMUIM OF MORTGAGE DEBT PREMIUM RATE RETAIL PROPERTIES Beaver Valley Mall $ 46,988,870 $ 46,988,870 $ - 7.36% Capital City (2) 59,262,226 52,909,005 6,353,221 7.61% Chambersburg Mall (2)(3) 20,450,457 18,812,478 1,637,979 7.43% Cherry Hill Mall (4) 75,445,480 71,706,688 3,738,792 10.60% 59,104,477 59,104,477 - 5.00% Christiana Power I - - - 0.00% Creekview - - - 0.00% Crest Plaza Shopping Center - - - 0.00% Crossroads Mall 14,180,251 13,440,070 740,181 7.39% Dartmouth Mall 68,767,700 68,767,700 - 4.95% Echelon Mall - - - 0.00% Exton Square Mall (4) 105,727,050 98,839,982 6,887,068 6.95% Festival at Exton - - - 0.00% Francis Scott Key Mall (3) 35,788,299 32,921,837 2,866,462 7.43% Jacksonville Mall (3) 27,608,118 25,396,846 2,211,272 7.43% Logan Valley Mall (2)(3) 58,283,802 53,615,562 4,668,240 7.43% Lycoming Mall (2)(3) 35,788,300 32,921,837 2,866,463 7.43% Magnolia Mall 20,116,945 20,116,945 - 8.20% Moorestown Mall 63,118,924 63,118,924 - 4.95% New River Valley Mall (3) 17,382,889 15,990,607 1,392,282 7.43% Nittany Mall (2)(3) 30,675,686 28,218,718 2,456,968 7.43% North Hanover Mall (2)(3) 20,450,457 18,812,478 1,637,979 7.43% Northeast Tower Center (3) 17,894,150 16,460,919 1,433,231 7.43% Northeast Tower Center-Home Depot 12,500,000 12,500,000 - 7.40% Palmer Park Mall 17,885,194 17,885,194 - 6.77% Patrick Henry Mall (3) 51,637,406 47,501,508 4,135,898 7.43% Paxton Towne Centre - - - 0.00% Phillipsburg Mall (3) 30,675,686 28,218,718 2,456,968 7.43% Plymouth Meeting Mall - - - 0.00% Schuylkill Mall (2) 17,228,605 17,228,605 - 7.25% South Blanding Village - - - 0.00% South Mall (2)(3) 15,337,843 14,109,359 1,228,484 7.43% The Commons at Magnolia - - - 0.00% The Gallery at Market East I - - - 0.00% The Gallery at Market East II - - - 0.00% The Mall at Prince Georges (4) 43,090,253 41,472,631 1,617,622 8.70% Uniontown Mall (2)(3) 24,540,548 22,574,974 1,965,574 7.43% Valley Mall - - - 0.00% Valley View Mall 37,606,690 37,000,000 606,690 6.15% Viewmont Mall (2)(3) 30,675,686 28,218,718 2,456,968 7.43% Washington Crown Center (2) - - - 0.00% Willow Grove Park 111,539,363 108,620,126 2,919,237 8.39% Wiregrass Mall (4) 30,000,000 30,000,000 - 3.65% Wyoming Valley Mall (2)(3) 58,283,803 53,615,563 4,668,240 7.43% Westgate Anchor Pad - - - 0.00% Land held for development - - - 0.00% - --------------------------------------------------------------------------------------------------------------------- SUB-TOTAL RETAIL PROPERTIES $1,258,035,158 $1,197,089,339 $60,945,819 7.20% - --------------------------------------------------------------------------------------------------------------------- INDUSTRIAL PROPERTIES ARA Services, Allentown, PA $ - $ - $ - 0.00% ARA Services, Pennsauken, NJ - - - 0.00% Interstate Container Corporation - - - 0.00% Sears Roebuck & Co. - - - 0.00% - --------------------------------------------------------------------------------------------------------------------- SUB-TOTAL INDUSTRIAL AND LAND PROPERTIES $ - $ - $ - 0.00% - --------------------------------------------------------------------------------------------------------------------- TOTAL FOR WHOLLY OWNED PROPERTIES $1,258,035,158 $1,197,089,339 $60,945,819 7.20% - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $ 108,055,084 $ 108,055,084 $ - 7.47% - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- CORPORATE/LINE OF CREDIT $ 112,000,000 $ 112,000,000 $ - - --------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------- TOTAL FOR WHOLLY OWNED AND JV PROPERTIES $1,478,090,242 $1,417,144,423 $60,945,819 7.22% - ---------------------------------------------------------------------------------------------------------------------
ANNUAL MORTGAGE MORTGAGE DEBT BALANCE AT DATE OF PROPERTY NAME SERVICE MATURITY MATURITY NOTES RETAIL PROPERTIES Beaver Valley Mall $ 3,972,402 $ 42,265,601 2012 Capital City (2) 4,602,529 47,215,150 2012 Chambersburg Mall (2)(3) 1,762,666 17,199,298 2008 Cherry Hill Mall (4) 9,132,792 70,237,549 2005 3,889,582 58,148,407 2005 Christiana Power I - - Creekview - - Crest Plaza Shopping Center - - Crossroads Mall 1,191,103 12,646,534 2008 Dartmouth Mall 4,483,668 57,594,279 2013 Echelon Mall Exton Square Mall (4) 8,102,242 93,034,212 2008 Festival at Exton - - Francis Scott Key Mall (3) 3,084,665 30,098,771 2008 Jacksonville Mall (3) 2,379,598 23,219,052 2008 Logan Valley Mall (2)(3) 5,023,597 49,017,998 2008 Lycoming Mall (2)(3) 3,084,664 30,098,771 2008 Magnolia Mall 2,597,726 17,782,882 2007 Moorestown Mall 4,115,367 52,863,321 2013 New River Valley Mall (3) 1,498,266 14,619,403 2008 Nittany Mall (2)(3) 2,643,998 25,798,946 2008 North Hanover Mall (2)(3) 1,762,666 17,199,298 2008 Northeast Tower Center (3) 1,542,332 15,049,385 2008 Northeast Tower Center-Home Depot 925,000 12,500,000 2005 Palmer Park Mall 1,661,220 15,674,394 2009 Patrick Henry Mall (3) 4,450,730 43,428,226 2008 Paxton Towne Centre - - - Phillipsburg Mall (3) 2,643,998 25,798,946 2008 Plymouth Meeting Mall - - - Schuylkill Mall (2) 3,315,300 7,442,925 2008 South Blanding Village - - - South Mall (2)(3) 1,321,999 12,899,473 2008 The Commons at Magnolia - - - The Gallery at Market East I - - - The Gallery at Market East II - - - The Mall at Prince Georges (4) 4,134,937 39,986,536 2007 Uniontown Mall (2)(3) 2,115,199 20,639,157 2008 Valley Mall - - - Valley View Mall 2,275,500 34,094,549 2009 Viewmont Mall (2)(3) 2,643,998 25,798,946 2008 Washington Crown Center (2) - - - Willow Grove Park 10,046,933 107,307,726 2006 Wiregrass Mall (4) 967,200 30,000,000 2005 Wyoming Valley Mall (2)(3) 5,023,597 49,017,998 2008 Westgate Anchor Pad - - - Land held for development - - - - ---------------------------------------------------------------------------------------------------- SUB-TOTAL RETAIL PROPERTIES $106,395,474 $1,098,677,734 - ---------------------------------------------------------------------------------------------------- INDUSTRIAL PROPERTIES ARA Services, Allentown, PA $ - $ - - ARA Services, Pennsauken, NJ - - - Interstate Container Corporation - - - Sears Roebuck & Co. - - - - ---------------------------------------------------------------------------------------------------- SUB-TOTAL INDUSTRIAL AND LAND PROPERTIES $ - $ - - ---------------------------------------------------------------------------------------------------- TOTAL FOR WHOLLY OWNED PROPERTIES $106,395,474 $1,098,677,734 - ---------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------- TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $ 10,205,588 $ 93,753,089 - ---------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------- CORPORATE/LINE OF CREDIT - ---------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------- TOTAL FOR WHOLLY OWNED AND JV PROPERTIES $116,601,062 $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) Mortgage term does not include two 12 month extensions. PAGE 13 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) DEBT SCHEDULE OF PARTNERSHIPS AND JOINT VENTURES
PREIT'S TOTAL PREIT'S PREIT'S PREIT'S OWNERSHIP INVESTMENT INVESTMENT TO ACCUMULATED DEPRECIATED PROPERTY NAME INTEREST TO DATE DATE (1) DEPRECIATION COSTS RETAIL PROPERTIES Court at Oxford Valley 50% $ 55,612,768 $ 27,806,384 $ 4,468,041 $ 23,338,343 Laurel Mall 40% 31,423,473 12,569,389 4,897,068 7,672,321 Lehigh Valley Mall 50% 30,709,652 15,354,826 9,620,895 5,733,931 Metroplex Shopping Center (Blue Route) 50% 84,759,060 42,379,530 4,239,103 38,140,427 Red Rose Commons 50% 23,879,218 11,939,609 1,512,128 10,427,481 Springfield Park I&II 50% 13,291,878 6,645,939 666,605 5,979,334 Whitehall Mall 50% 29,841,082 14,920,541 5,720,821 9,199,720 - ------------------------------------------------------------------------------------------------------------------------- SUB-TOTAL RETAIL PROPERTIES $269,517,131 $131,616,218 $31,124,661 $100,491,557 - ------------------------------------------------------------------------------------------------------------------------- CONSTRUCTION IN PROGRESS/DEVELOPMENT Pavilion at Market East 50% N/A $ 1,506,178 - $ 1,506,178 - ------------------------------------------------------------------------------------------------------------------------- SUB-TOTAL PROPERTIES UNDER DEVELOPMENT $ - $ 1,506,178 $ - $ 1,506,178 - ------------------------------------------------------------------------------------------------------------------------- TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $269,517,131 $133,122,396 $31,124,661 $101,997,735 ========================================================================================================================= CURRENT PREIT'S SHARE OF PREIT'S SHARE MORTGAGES O/S MORTGAGE DEBT AND PREIT'S SHARE OF MORTGAGE INTEREST PROPERTY NAME MORTGAGE DEBT PREMUIM OF MORTGAGE DEBT PREMIUM RATE RETAIL PROPERTIES Court at Oxford Valley $ 21,389,965 $ 21,389,965 $- 8.02% Laurel Mall 9,122,244 9,122,244 - 6.00% Lehigh Valley Mall 23,208,503 23,208,503 - 7.90% Metroplex Shopping Center (Blue Route) 31,895,616 31,895,616 - 7.25% Red Rose Commons 13,684,149 13,684,149 - 7.66% Springfield Park I&II 1,804,591 1,804,591 - 7.79% Whitehall Mall 6,950,016 6,950,016 - 6.77% - -------------------------------------------------------------------------------------------------------------------- SUB-TOTAL RETAIL PROPERTIES $108,055,084 $108,055,084 $- 7.47% - -------------------------------------------------------------------------------------------------------------------- CONSTRUCTION IN PROGRESS/DEVELOPMENT Pavilion at Market East - $ - $- 0.00% - -------------------------------------------------------------------------------------------------------------------- SUB-TOTAL PROPERTIES UNDER DEVELOPMENT $ - $ - $- $ - - -------------------------------------------------------------------------------------------------------------------- TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $108,055,084 $108,055,084 $- 7.47% ==================================================================================================================== ANNUAL MORTGAGE MORTGAGE DEBT BALANCE AT DATE OF PROPERTY NAME SERVICE MATURITY MATURITY NOTES RETAIL PROPERTIES Court at Oxford Valley $ 2,319,426 $15,966,965 2011 Laurel Mall 661,904 7,819,521 2013 Lehigh Valley Mall 2,479,260 21,750,440 2006 Metroplex Shopping Center (Blue Route) 2,680,953 28,250,000 2011 Red Rose Commons 1,220,048 12,425,422 2009 Springfield Park I&II 202,561 1,411,804 2010 Whitehall Mall 641,436 6,128,937 2008 - ------------------------------------------------------------------------------------------------- SUB-TOTAL RETAIL PROPERTIES $10,205,588 $93,753,089 - ------------------------------------------------------------------------------------------------- CONSTRUCTION IN PROGRESS/DEVELOPMENT Pavilion at Market East - - - ------------------------------------------------------------------------------------------------- SUB-TOTAL PROPERTIES UNDER DEVELOPMENT $ - $ - - ------------------------------------------------------------------------------------------------- TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $10,205,588 $93,753,089 =================================================================================================
(1) Includes development and CIP costs. PAGE 14 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) DEBT ANALYSIS
- ----------------------------------------------------------------------------------------------------------------------- OUTSTANDING DEBT (1) % OF TOTAL % OF TOTAL FIXED RATE INDEBTEDNESS FLOATING RATE INDEBTEDNESS WHOLLY OWNED Mortgage Notes Payable $1,228,035,158 83.1% $ 30,000,000 2.0% Revolving Line of Credit - 0.0% - 0.0% SUB-TOTAL 1,228,035,158 83.1% 30,000,000 2.0% PARTNERSHIPS AND JOINT VENTURES (AT PREIT'S SHARE) Mortgage Notes Payable 108,055,084 7.3% - 0.0% Revolving Line of Credit - 0.0% - 0.0% Construction loans payable - 0.0% - 0.0% -------------- ------------ SUB-TOTAL 108,055,084 7.3% - 0.0% CORPORATE Revolving Line of Credit 0.0% 112,000,000 7.6% ------------ SUB-TOTAL 0.0% 112,000,000 7.6% TOTAL OUTSTANDING DEBT 1,336,090,242 142,000,000 SWAP - - -------------- ------------ TOTAL DEBT AFTER HEDGE $1,336,090,242 90.4% $142,000,000 9.6% - ----------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------ OUTSTANDING DEBT (1) % OF TOTAL TOTAL INDEBTEDNESS WHOLLY OWNED Mortgage Notes Payable $1,258,035,158 85.1% Revolving Line of Credit - 0.0% OUTSTANDING SUB-TOTAL 1,258,035,158 85.1% PRINCIPAL PARTNERSHIPS AND JOINT VENTURES (AT PREIT'S SHARE) BALANCE Mortgage Notes Payable 108,055,084 7.3% [GRAPHIC OMITTED] Revolving Line of Credit - 0.0% Construction loans payable - 0.0% -------------- SUB-TOTAL 108,055,084 7.3% CORPORATE Revolving Line of Credit 7.6% SUB-TOTAL 112,000,000 7.6% -------------- TOTAL OUTSTANDING DEBT 1,478,090,242 SWAP - -------------- TOTAL DEBT AFTER HEDGE $1,478,090,242 100.0% -----------------------------------------------------------------------------------------------------------
(1) Includes mark to market of debt.
- -------------------------------------------------------------------------------- WEIGHTED AVERAGE INTEREST RATES WEIGHTED AVERAGE PRINCIPAL BALANCE INTEREST RATE Fixed Rate Debt $1,275,144,423 7.30% Mortgage Debt Premium 60,945,819 N/A Floating Rate Debt 142,000,000 3.50% ------------------------------------ TOTAL $1,478,090,242 6.92% - --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------- MORTGAGE/CONSTRUCTION MATURITY SCHEDULE (1) MORTGAGE BALANCE CUMULATIVE % YEAR AT MATURITY % OF DEBT EXPIRING OF 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 4.6 years.
- ----------------------------------------------------------------------------------------------------------------------------------- INTEREST RATE HEDGING INSTRUMENTS EXPIRATION FIXED RATE FLOATING RATE IN NOMINAL AMOUNT INTEREST RATE LIMIT DATE NOMINAL AMOUNT IN AGREEMENT AGREEMENT EXPIRATION DATE - ------------------------------------------------------ -------------------------------------------------------------------------- CAP NONE SWAP NONE - -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------- AVERAGE DEBT BALANCE MORTGAGE DEBT (1) & CONSTRUCTION LINE OF CREDIT & LOANS BANK LOANS REMIC TOTAL ----------------- ---------------- -------------- -------------- BEGINNING BALANCE 6/30/2004 $896,271,888 $ 219,000,000 $ 479,876,115 $1,595,148,095 Disposition (Non-Core Assets) 9/27/2004 (107,000,000) (107,000,000) Debt Amortization (2) 9/30/2004 (5,654,776) (4,402,985) (10,057,761) ----------------------------------------------------------------------- ENDING BALANCE 9/30/2004 $890,617,112 $ 112,000,000 $ 475,473,130 $1,478,090,242 WEIGHTED AVERAGE BALANCE $896,271,888 $ 215,510,870 $ 479,876,115 $1,591,658,873 - -----------------------------------------------------------------------------------------------------------------------------------
(1) Includes mark to market of debt. (2) Includes the amortization of debt premium. PAGE 15 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) DEBT RATIOS(1)
9/30/2004 9/30/2003 --------------- --------------- 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 $ 1,504,604,212 $ 761,163,122 Gross Asset Value $ 3,022,626,040 $ 1,523,628,448 RATIO 49.78% 49.96% - ------------------------------------------------------------------------------------------------------------------------------------ EBITDA TO INTEREST EXPENSE Ratio of EBITDA(4) to Interest Expense(5) greater than or equal to 1.90 to 1.00. EBITDA $ 219,394,765 $ 104,337,345 Interest Expense $ 97,882,204 $ 49,889,409 RATIO 2.24 2.09 - ------------------------------------------------------------------------------------------------------------------------------------ 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 $ 217,750,933 $ 102,768,757 Fixed Charges $ 130,138,879 $ 56,925,508 RATIO 1.67 1.81 - ------------------------------------------------------------------------------------------------------------------------------------ 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 $ 1,305,144,423 Gross Asset Value $ 3,022,626,040 RATIO 43.18% N/A - ------------------------------------------------------------------------------------------------------------------------------------
(1) Debt ratios are based on loan covenants included in the Trust's 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%. Capitalized terms used in this footnote shall have the meanings ascribed to such terms in the Credit Agreement. (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 (SEPTEMBER 30, 2004) PORTFOLIO SUMMARY--RETAIL (Sorted by State)
RETAIL PROPERTIES (1) CITY STATE SUBTYPE PROPERTY 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 The Mall at Prince George Hyattsville MD Enclosed Mall PREIT Redevelopment Dartmouth Mall Dartmouth MA Enclosed Mall PREIT Existing Cherry Hill Mall Cherry Hill NJ Enclosed Mall PREIT Existing Moorestown Mall Moorestown NJ Enclosed Mall PREIT Existing Phillipsburg Mall Phillipsburg NJ Enclosed Mall PREIT New Echelon Mall Voorhees NJ Enclosed Mall PREIT Existing Jacksonville Mall Jacksonville NC Enclosed Mall PREIT New Crest Plaza Shopping Center Allentown PA Strip Center PREIT Existing 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 YEAR BUILT/ YEARS SINCE RETAIL PROPERTIES (1) OWNERSHIP INTEREST DATE ACQUIRED LAST RENOVATED RENOVATION OWNED GLA (ANCHORS) --------------------- ------------------ ------------- -------------- ----------- ------------------ Wiregrass Commons 100% 2003 1986/1999 5 - Christiana Power Center I 100% 1998 1998 6 190,814 South Blanding Village 100% 1988/1990 1986 18 73,921 Francis Scott Key Mall (2) 89% 2003 1978/1991 13 291,620 Valley Mall 100% 2003 1974/1999 5 294,348 The Mall at Prince George 100% 1998 1959/2004 0 404,462 Dartmouth Mall 100% 1997 1971/2000 4 208,460 Cherry Hill Mall 100% 2003 1961/1990 14 - Moorestown Mall 100% 2003 1963/2000 4 408,356 Phillipsburg Mall 89% 2003 1989/2003 1 326,170 Echelon Mall 100% 2003 1970/1998 6 310,840 Jacksonville Mall 100% 2003 1981/1998 6 242,115 Crest Plaza Shopping Center 100% 1964 1959/2003 1 45,000 Lehigh Valley Mall 50% 1973 1977/1996 8 212,000 South Mall (2) 89% 2003 1975/1992 12 188,858 Whitehall Mall 50% 1964 1964/1998 6 294,635 Logan Valley Mall (2) 100% 2003 1960/1997 7 454,387 Capital City Mall (2) 100% 2003 1974/1998 6 204,301 Chambersburg Mall (2) 89% 2003 1982 22 241,690 Palmer Park Mall 100% 1972/2003 1972/1998 6 314,235 OWNED GLA TOTAL OWNED TOTAL PROPERTY RETAIL PROPERTIES (1) (NON-ANCHORS) GLA SPACE NOT OWNED (NAME/GLA) GLA --------------------- ------------- ------------ ------------------ ---------- -------------- Wiregrass Commons 229,713 229,713 Dillard's 403,163 632,876 JC Penney McRaes Parisian Christiana Power Center I 111,595 302,409 - 302,409 South Blanding Village 32,736 106,657 - 106,657 Francis Scott Key Mall (2) 277,869 569,489 Hecht's 139,333 708,822 Valley Mall 355,892 650,240 Sears 243,400 893,640 Hecht's The Mall at Prince George 348,873 753,335 - 753,335 Dartmouth Mall 314,929 523,389 Filene's 93,123 616,512 Cherry Hill Mall 528,917 528,917 JC Penney 740,770 1,269,687 Macy's Strawbridge's Moorestown Mall 324,573 732,929 Lord & 321,200 1,054,129 Taylor Strawbridge's Phillipsburg Mall 246,300 572,470 - 572,470 Echelon Mall 433,275 744,115 Boscov's 396,783 1,140,898 Strawbridge's Jacksonville Mall 232,530 474,645 - 474,645 Crest Plaza Shopping Center 60,827 105,827 Target 143,130 248,957 Lehigh Valley Mall 466,431 678,431 JC Penney 371,986 1,050,417 Strawbridge's Firestone South Mall (2) 214,884 403,742 - 403,742 Whitehall Mall 231,727 526,362 - 526,362 Logan Valley Mall (2) 327,247 781,634 - 781,634 Capital City Mall (2) 284,359 488,660 Hecht's 120,000 608,660 Chambersburg Mall (2) 211,237 452,927 - 452,927 Palmer Park Mall 131,775 446,010 - 446,010
MAJORS / LEASE RETAIL PROPERTIES (1) ANCHORS EXPIRATION --------------------- ------- ----------- Wiregrass Commons Dillard's 1/31/37 JC Penney 5/30/14 McRaes 1/31/37 Parisian 1/31/37 Christiana Power Costco 1/31/19 Center I Dick's Sporting 11/30/13 Gds South Blanding Staples 9/30/08 Village Food Lion 7/31/08 Francis Scott Key Hecht's N/A Mall (2) Sears 7/31/08 JC Penney 5/31/06 6/30/10 Value City Valley Mall Sears 4/14/44 JC Penney 10/3/09 1/31/14 Bon-Ton 10/23/49 Hecht's The Mall at Prince JC Penney 7/31/06 George 10/31/08 Hecht Dartmouth Mall JC Penney 7/31/09 4/12/06 Sears N/A Filene's Cherry Hill Mall JC Penney N/A N/A Macy's N/A Strawbridge's Moorestown Mall Boscov's 10/31/10 Lord & N/A Taylor 10/5/22 Sears N/A Strawbridge's Phillipsburg Mall Bon-Ton 1/31/10 JC Penney 3/31/10 4/30/09 Sears 1/31/25 Kohl's Echelon Mall Boscov's N/A Strawbridge's N/A Jacksonville Mall Belks 8/21/11 JC Penney 8/31/05 8/4/11 Sears Crest Plaza Weis 1/31/07 Shopping Center Market N/A Target Lehigh Valley Mall Macy's 7/31/12 JC Penney N/A N/A Strawbridge's South Mall (2) Bon-Ton 9/30/05 Stein 10/31/06 Mart 1/31/11 Steve & Barry's Whitehall Mall Kohl's 3/9/07 Sears 9/18/11 Bed, Bath & 1/31/10 Beyond Logan Valley Mall (2) JC Penney 6/30/17 1/31/05 Kaufmann's 10/31/16 Sears Capital City Mall (2) JC Penney 11/30/10 N/A Hecht's 7/31/04 Sears Chambersburg Mall (2) Bon-Ton 7/31/05 JC Penney 3/31/12 2/9/10 Sears 2/28/07 Value City Palmer Park Mall Bon-Ton 7/25/14 Boscov's 10/31/18
PAGE 17A PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) 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 Existing 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 (3) Philadelphia PA Enclosed Mall PREIT Existing The Gallery at Market East II (3) Philadelphia PA Enclosed Mall PREIT New Plymouth Meeting Mall Plymouth Meeting PA Enclosed Mall PREIT Existing 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 (3) 100% 2003 1977/1990 13 The Gallery at Market East II (3) 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 440,301 369,483 809,769 Festival at Exton 60,425 84,578 145,003 North Hanover Mall (2) 288,177 165,734 443,911 Paxton Towne Centre 151,627 292,856 444,483 Laurel Mall 350,323 208,429 558,752 Red Rose Commons - 263,452 263,452 The Court at Oxford Valley 176,831 280,032 456,863 Beaver Valley Mall 511,267 446,833 958,100 Lycoming Mall (2) 321,441 340,045 661,486 Northeast Tower Center 256,021 182,521 438,542 The Gallery at Market East I (3) 193,550 193,550 The Gallery at Market East II (3) 127,271 207,455 334,726 Plymouth Meeting Mall 345,000 413,593 758,593 Metroplex Shopping Center 67,185 410,276 477,461 Viewmont Mall (2) 386,262 236,807 623,069 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 1,087,237 Festival at Exton - 145,003 North Hanover Mall (2) - 453,911 Paxton Towne Centre Target Costco 273,058 717,541 Laurel Mall - 558,752 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 1,162,870 Lycoming Mall (2) Kaufmann's 120,000 781,486 Northeast Tower Center Raymour & Flanigan 38,678 477,220 The Gallery at Market East I (3) - 193,550 The Gallery at Market East II (3) - 334,726 Plymouth Meeting Mall Strawbridge's 214,635 973,228 Metroplex Shopping Center Target Lowe's 300,729 778,190 Viewmont Mall (2) Kaufmann's 120,000 743,069 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 Petsmart 2/28/12 Wal-Mart 1/31/14 The Gallery at Market East I (3) K-Mart N/A Strawbridge's N/A The Gallery at Market East II (3) 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 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) PORTFOLIO SUMMARY-RETAIL (Sorted by State)
RETAIL PROPERTY MANAGEMENT PROPERTY OWNERSHIP DATE YEAR BUILT/ YEARS SINCE PROPERTIES (1) CITY STATE SUBTYPE STATUS STATUS INTEREST ACQUIRED LAST RENOVATED RENOVATION -------------- ---- ----- ------- ---------- -------- --------- -------- -------------- ----------- Washington Crown Washington PA Enclosed PREIT New 89% 2003 1969/1999 5 Center (2) Mall Wyoming Valley Wilkes-Barre PA Enclosed PREIT New 100% 2003 1974/1995 9 Mall (2) Mall Willow Grove Park Willow Grove PA Enclosed PREIT New 100% 2000/2003 1982/2001 3 Mall Magnolia Mall Florence SC Enclosed PREIT Existing 100% 1997 1979/1992 12 Mall The Commons at Florence SC Strip PREIT Existing 100% 1999 1991/2002 2 Magnolia Center New River Valley Mall Christiansburg VA Enclosed PREIT New 89% 2003 1988 16 Mall Patrick Henry Mall Newport News VA Enclosed PREIT New 89% 2003 1988/1999 5 Mall Crossroads Mall Beckley WV Enclosed PREIT New 100% 2003 1981 23 Mall Valley View Mall La Crosse WI Enclosed PREIT New 100% 2003 1980/2001 3 Mall - -------------------------------------------------------------------------------------------------------------------------------- PROPERTIES HELD FOR SALE Schuylkill Mall (2) Frackville PA Enclosed PREIT New 100% 2003 1980/1991 13 Mall 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 8.50 - --------------------------------------------------------------------------------------------------------------------------------
RETAIL OWNED GLA OWNED GLA TOTAL SPACE NOT OWNED (NAME/GLA) TOTAL PROPERTY MAJORS / LEASE PROPERTIES (1) (ANCHORS) (NON-ANCHORS) OWNED GLA GLA ANCHORS EXPIRATION -------------- --------- ------------- --------- -------------------------- -------------- --------- ----------- Washington Crown 245,401 288,171 533,572 Kaufmann's 140,095 673,667 Sears 8/17/09 Center (2) Bon-Ton 1/31/10 Gander 7/24/13 Kaufmann's N/A Wyoming Valley 592,110 319,452 911,562 - 911,562 Bon-Ton 1/31/07 Mall (2) JC Penney 1/31/07 Sears 8/1/06 Kaufmann's 1/31/07 Willow Grove Park 225,000 339,098 564,098 Sears 641,861 1 ,205,959 Sears N/A Bloomingdale's Bloomingdale's N/A Strawbridge Strawbridge's N/A Macy's 1/31/22 Magnolia Mall 343,118 219,742 562,860 - 562,860 Belk 1/31/06 Best Buy 1/31/13 JC Penney 3/31/07 Sears 10/16/09 The Commons at 51,574 52,915 104,489 Target 126,200 230,689 Goody's 5/31/12 Magnolia Target N/A New River Valley Mall 240,306 187,849 428,155 - 428,155 Belks 4/19/08 JC Penney 3/31/08 Sears 8/2/08 Patrick Henry Mall 267,175 233,191 500,366 Hecht's 140,000 640,366 Dillard's Mens 4/30/08 Dillard's Womens 9/22/13 JC Penney 10/31/15 Hecht's N/A Crossroads Mall 256,248 193,836 450,084 - 450,084 Sears 11/30/08 JC Penney 3/31/06 Belk 12/31/06 Valley View Mall 96,357 238,380 334,737 Herberges 254,596 589,333 JC Penney 7/31/10 Marshall Herberges N/A Fields Marshall Fields N/A Sears Sears N/A - ----------------------------------------------------------------------------------------------------------------------------------- PROPERTIES HELD FOR SALE Schuylkill Mall (2) 346,990 318,921 665,911 Bon-Ton 60,916 726,827 K-Mart 10/31/05 Sears 10/31/05 Bon-Ton N/A Black Diamond 12/31/04 Antiques TOTAL ASSETS HELD FOR SALE 346,990 318,921 665,911 - 60,916 726,827 TOTAL CONTINUING PROPERTIES 11,232,011 12,205,989 23,438,000 - 6,801,776 30,239,776 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL WHOLLY OWNED 10,394,488 10,621,271 21,015,759 5,597,095 26,612,854 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL JOINT VENTURE 1,184,513 1,903,639 3,088,152 1,265,597 4,353,749 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL FOR Wholly Owned and Joint Venture 11,579,001 12,524,910 24,103,911 6,862,692 30,966,603 - ----------------------------------------------------------------------------------------------------------------------------------- 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 35 42 25 41 - ---------------------------------------------------------------------------------------- POWER CENTER THIRD PARTY MANAGED NEW JOINT VENTURE 8 6 22 7 - ---------------------------------------------------------------------------------------- STRIP CENTER REDEVELOPMENT 5 1 - ---------------------------------------------------------------------------------------- 48 48 48 48 - ----------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------- 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 20,469,446 21,142,590 11,129,880 21,015,759 17.5% - ---------------------------------------------------------------------------------------------------------------------------------- POWER CENTER THIRD PARTY MANAGED NEW JOINT VENTURE TOP ASSET AS A PERCENTAGE OF TOTAL OWNED GLA: 3,045,658 2,961,321 12,220,696 3,088,152 4.0% - ---------------------------------------------------------------------------------------------------------------------------------- STRIP CENTER REDEVELOPMENT 588,807 753,335 - ---------------------------------------------------------------------------------------------------------------------------------- 24,103,911 24,103,911 24,103,911 24,103,911 - ----------------------------------------------------------------------------------------------------------------------------------
(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) The Gallery at Market East I & The Gallery at Market East II were counted as one property. PAGE 17C PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) QUARTERLY ACTIVITY PROPERTY ACQUISITIONS/DISPOSITIONS SUMMARY
- ----------------------------------------------------------------------------------------------------------------------------------- NAME OF PROJECT, LOCATION SQUARE FEET/ OWNERSHIP DATE ACQUIRED, TOTAL COST OR PRICE UNITS/ACRES INTEREST COMPLETED, OR SOLD - ----------------------------------------------------------------------------------------------------------------------------------- ACQUISITIONS: None TOTAL ACQUISITIONS SQUARE FEET - $ - PENDING ACQUISITIONS: Cumberland Mall, Vineland, New Jersey SQUARE FEET 925,000 100% 4Q04 $ 59,500,000 Orlando Fashion Square, Orlando, Florida 1,100,000 100% 4Q04 123,500,000 --------- ------------- TOTAL PENDING ACQUISITIONS SQUARE FEET 2,025,000 $ 183,000,000 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 2,625,806 100% 3Q04 $ 110,700,000 Rio Grande Mall 165,583 60% 3Q04 4,100,000 --------- ------------- TOTAL DIVESTITURES SQUARE FEET 2,791,389 $ 114,800,000 PENDING DIVESTITURES: Schuylkill Mall, Frackville, PA 726,827 N/A N/A --------- ------------- TOTAL PENDING DIVESTITURES SQUARE FEET 726,827 $ - - -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------- NAME OF PROJECT, LOCATION PREIT'S COST OR PRICE EXPECTED NOI MAJOR TENANTS CAP (1) - ----------------------------------------------------------------------------------------------------------------------------------- ACQUISITIONS: None TOTAL ACQUISITIONS $ - PENDING ACQUISITIONS: Cumberland Mall, Vineland, New Jersey $ 59,500,000 10.2% Boscov's, JC Penney, Value City Orlando Fashion Square, Orlando, Florida 123,500,000 7.6% Burdines-Macy's, Dillard's, JC Penney, Sears ------------- TOTAL PENDING ACQUISITIONS $ 183,000,000 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. $ 110,700,000 11.0% Rio Grande Mall 4,100,000 11.0% ------------- TOTAL DIVESTITURES $ 114,800,000 PENDING DIVESTITURES: Schuylkill Mall, Frackville, PA N/A N/A ------------- TOTAL PENDING DIVESTITURES $ - - -----------------------------------------------------------------------------------------------------------------------------------
(1) Expected NOI Cap is defined as PREIT's share of NOI in the year of stabilization divided by PREIT's share of the investment, except in the case of partner buyouts, where Expected NOI Cap is defined as incremental NOI budgeted / PREIT's incremental investment in the property. PAGE 18 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) 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 (4) 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 $ 4,681,706 N/A Lacey 34,532,519 26,125,086 2,738,561 10.0% New Garden 42,580,062 27,830,062 1,451,223 8.5% Pavilion at Market East (4) N/A N/A 1,506,178 N/A - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DEVELOPMENT ACTIVITY $ 77,112,581 $ 53,955,148 $ 10,377,668 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 1Q05 4Q05 2Q06(3) 3Q06 Development New Garden 2Q05 1Q06 1Q06 2Q06 Development Pavilion at Market East (4) 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 (4) 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 unable to predict the outcome of this proceeding. (3) Home Depot is expected to open in 4Q05 with the balance of the Shopping Center to open during the 2Q06. (4) 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) - ------------------------------------------------------------------------------------------------------------------------------------ The Mall at Prince Georges (2)(3) Hyattsville, MD Enclosed Mall 893,274 Echelon Mall (4) Voorhees, NJ Enclosed Mall 1,187,631 Patrick Henry Mall (5) Newport News, VA Enclosed Mall 712,371 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL REDEVELOPMENT ACTIVITY $ 2,793,276 - ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ NAME OF PROJECT TOTAL PROJECTED PREIT'S SHARE OF COST PREIT'S SHARE OF EXPECTED STABILIZED COST (1) INVESTMENT TO DATE NOI CAP - ------------------------------------------------------------------------------------------------------------------------------------ The Mall at Prince Georges (2)(3) $ 24,146,000 $ 18,000,000 $ 8,933,061 12.0% Echelon Mall (4) 13,500,000 572,693 11.0% Patrick Henry Mall (5) 25,700,000 25,700,000 33,435 10.0% - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL REDEVELOPMENT ACTIVITY $ 49,846,000 $ 57,200,000 $ 9,539,189 10.9% - ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ NAME OF PROJECT CONST START DATE OF INITIAL EXPECTED DATE OF STABILIZED OPERATIONS STATUS DATE OCCUPANCY COMPLETION DATE - ------------------------------------------------------------------------------------------------------------------------------------ The Mall at Prince Georges (2)(3) 2Q03 4Q04 4Q04 4Q05 Construction Echelon Mall (4) 2Q05 2Q06 Patrick Henry Mall (5) 4Q04 4Q05 4Q05 4Q05 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL REDEVELOPMENT ACTIVITY - ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ NAME OF PROJECT % COMP. % LEASED % OCCUPIED ANCHORS PREIT'S SHARE - ------------------------------------------------------------------------------------------------------------------------------------ The Mall at Prince Georges (2)(3) 40% 65% 0% Target 100% Echelon Mall (4) 4% 0% 0% Wal-Mart (4) 100% Patrick Henry Mall (5) 0% 49% 0% Dick's Sporting Goods 100% - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL REDEVELOPMENT ACTIVITY - ------------------------------------------------------------------------------------------------------------------------------------
(1) GLA and total project cost include tenants that purchased their respective land; therefore, the % leased and occupied will also include these tenants. (2) Income producing property, but still under development. (3) The mall at Prince Georges % leased is based on the 210,010 sq foot redevelopment area which was vacant at 9/30/04. (4) Wal-Mart committed to the redevelopment plans at Echelon Mall. See PREIT's press release from 7/14/04. (5) Dick's Sporting Goods committed to the redevelopment plans at Patrick Henry Mall. See PREIT's press release from 8/05/04. PAGE 19 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) 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 53 3 56 The Limited Stores, Inc. 76 16 92 JC Penney 27 3 30 Footlocker, Inc. 62 3 65 Sears 26 3 29 Zales 82 0 82 Hallmark Cards, Inc. 53 2 55 Sterling Jewelers, Inc. (Kay Jewelers) 37 0 37 American Eagle Outfitters 28 1 29 Borders 31 1 32 Trans World Entertainment 31 0 31 Bon-Ton 15 1 16 Regis Corp. 80 0 80 Boscov's 6 1 7 Kay Bee Toys (4) 30 1 31 Sun Capital Partners 26 2 28 Charming Shoppes, Inc. 28 1 29 Shoe Show, Inc. 32 0 32 Payless Shoe Source 38 5 43 Luxottica 38 0 38 - ------------------------------------------------------------------------------------------------------------------------------------ Total Top 20 Tenants 799 43 842 - ------------------------------------------------------------------------------------------------------------------------------------ Total Retail Leased 3,315 - ------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------- GLA OF STORES ---------------------------------------------------------- PERCENTAGE RENT IN LIEU OF FIXED RENT OR COMMON TENANT FIXED RENT AREA COSTS (1) TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ Gap, Inc./Old Navy 644,400 35,012 679,412 The Limited Stores, Inc. 462,485 59,441 521,926 JC Penney 2,396,595 362,130 2,758,725 Footlocker, Inc. 343,270 7,487 350,757 Sears 3,039,832 412,236 3,135,068 Zales 67,048 67,048 Hallmark Cards, Inc. 186,891 8,286 195,177 Sterling Jewelers, Inc. (Kay Jewelers) 51,542 51,542 American Eagle Outfitters 135,174 3,800 138.974 Borders 177,773 3,725 181,498 Trans World Entertainment 141,240 141,240 Bon-Ton 1,077,982 60,916 1,138,898 Regis Corp. 95,045 95,045 Boscov's 1,130,706 178,000 1,308,706 Kay Bee Toys (4) 133,438 3,407 136,845 Sun Capital Partners 85,385 7,810 93,195 Charming Shoppes, Inc. 183,630 5,204 188,834 Shoe Show, Inc. 155,180 155,180 Payless Shoe Source 124,202 17,103 141,305 Luxottica 79,595 79,595 - ------------------------------------------------------------------------------------------------------------------------------------ Total Top 20 Tenants 10,711,413 1,164,557 11,558,970 - ------------------------------------------------------------------------------------------------------------------------------------ Total Retail Leased 22,080,797 - ------------------------------------------------------------------------------------------------------------------------------------
PREIT'S SHARE OF ANNUALIZED PERCENT OF PREIT'S TENANT ANNUALIZED BASE RENT BASE RENT (2) TOTAL RETAIL BASE RENT - ------------------------------------------------------------------------------------------------------------------------------------ Gap, Inc./Old Navy $13,253,815 $12,434,505 4.69% The Limited Stores, Inc. 10,796,229 10,313,347 3.89% JC Penney 6,910,930 6,779,824 2.56% Footlocker, Inc. 6,081,445 5,769,509 2.18% Sears 5,778,919 5,623,188 2.12% Zales 4,926,451 4,715,676 1.78% Hallmark Cards, Inc. 4,310,577 4,175,542 1.58% Sterling Jewelers, Inc. (Kay Jewelers) 3,498,814 3,311,314 1.25% American Eagle Outfitters 3,336,690 3,203,112 1.21% Borders 3,414,480 3,188,582 1.20% Trans World Entertainment 3,323,217 3,144,981 1.19% Bon-Ton 2,943,869 2,943,869 1.11% Regis Corp. 2,824,521 2,767,937 1.04% Boscov's 3,137,572 2,695,972 1.02% Kay Bee Toys (4) 2,822,006 2,681,537 1.01% Sun Capital Partners 2,737,710 2,654,130 1.00% Charming Shoppes, Inc. 2,651,983 2,512,946 0.95% Shoe Show, Inc. 2,586,359 2,512,320 0.95% Payless Shoe Source 2,623,325 2,471,897 0.93% Luxottica 2,609,521 2,430,593 0.92% - ------------------------------------------------------------------------------------------------------------------------------------ Total Top 20 Tenants 90,568,433 86,330,781 32.59% - ------------------------------------------------------------------------------------------------------------------------------------ Total Retail Leased $276,920,992 $264,932,116(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 3rd quarter base rent from continuing operations. 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 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
RETAIL LEASE EXPIRATION SCHEDULE - ANCHORS(1) - ------------------------------------------------------------------------------------------------------------------------------------ YEAR LEASES GROSS LEASABLE AREA ANNUALIZED BASE RENT - ------------------------------------------------------------------------------------------------------------------------------------ PERCENT OF AVERAGE LEASE NUMBER OF PREIT'S SHARE OF TOTAL EXPIRING EXPIRATION LEASES PERCENT RENT IN EXPIRING RENT IN EXPIRING (PREIT'S BASE RENT YEAR EXPIRING EXPIRING GLA OF TOTAL YEAR YEAR (3) SHARE) PSF - ------------------------------------------------------------------------------------------------------------------------------------ Prior (2) 1 85,483 0.77% $ 188,400 $188,400 0.52% $2.20 2004 0 - 0.00% - - 0.00% N/P 2005 17 1,443,834 13.09% 5,357,548 5,357,548 14.82% 3.71 2006 17 1,258,227 11.40% 3,129,830 3,129,830 8.66% 2.49 2007 8 814,155 7.38% 1,975,866 1,965,966 5.44% 2.43 2008 16 1,070,427 9.70% 2,799,649 2,799,649 7.75% 2.62 2009 13 1,050,150 9.52% 3,543,076 2,578,371 7.13% 3.37 2010 9 889,129 8.06% 2,797,803 2,797,803 7.74% 3.15 2011 7 615,055 5.57% 3,380,699 2,257,884 6.25% 5.50 2012 3 302,710 2.74% 512,783 475,902 1.32% 1.69 2013 5 304,486 2.76% 2,286,713 2,286,713 6.33% 7.51 2014 4 409,607 3.71% 1,645,670 1,645,670 4.55% 4.02 Thereafter 22 2,789,487 25.28% 12,363,397 10,663,608 29.50% 4.43 - ----------------------------------------------------------------------------------------------------------------------------------- TOTALS: 122 11,032,750 100% $39,981,434 $36,147,344 100% $3.62 - -----------------------------------------------------------------------------------------------------------------------------------
(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 (SEPTEMBER 30, 2004) RETAIL LEASE EXPIRATION SCHEDULE - NON-ANCHORS(1)
- ------------------------------------------------------------------------------------------------------------------------------------ YEAR LEASES GROSS LEASABLE AREA ANNUALIZED BASE RENT - ------------------------------------------------------------------------------------------------------------------------------------ PERCENT OF AVERAGE LEASE NUMBER OF PREIT'S SHARE OF TOTAL EXPIRING EXPIRATION LEASES PERCENT RENT IN EXPIRING RENT IN EXPIRING (PREIT'S BASE RENT YEAR EXPIRING EXPIRING GLA OF TOTAL YEAR YEAR (3) SHARE) PSF - ------------------------------------------------------------------------------------------------------------------------------------ Prior (2) 132 369,250 3.34% $ 7,176,716 $ 6,764,949 2.93% $19.44 2004 89 162,311 1.47% 3,499,317 3,270,974 1.42% 21.56 2005 439 1,109,086 10.04% 24,317,369 23,158,403 10.04% 21.93 2006 407 1,113,488 10.08% 25,503,968 24,118,438 10.46% 22.90 2007 383 1,092,106 9.89% 24,040,874 22,718,282 9.85% 22.01 2008 342 1,041,401 9.43% 24,663,770 23,717,968 10.28% 23.68 2009 328 919,468 8.32% 23,498,545 22,808,243 9.89% 25.56 2010 319 1,175,877 10.64% 26,605,456 25,583,156 11.09% 22.63 2011 234 1,128,052 10.21% 25,011,380 21,945,086 9.51% 22.17 2012 193 808,615 7.32% 19,962,319 18,225,078 7.90% 24.69 2013 165 561,138 5.08% 14,261,046 13,356,122 5.79% 25.41 2014 97 477,265 4.32% 11,188,700 9,488,423 4.11% 23.44 Thereafter 65 1,089,990 9.87% 18,881,701 15,516,170 6.73% 17.32 - ------------------------------------------------------------------------------------------------------------------------------------ TOTALS: 3,193 11,048,047 100% $248,611,161 $230,671,292 100% $22.50 - ------------------------------------------------------------------------------------------------------------------------------------
(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 (SEPTEMBER 30, 2004) LEASING ACTIVITY SUMMARY
RETAIL AVERAGE INCREASE/ PREVIOUS AVERAGE DECREASE BASE RENT NEW BASE IN BASE NEW LEASE NUMBER GLA PSF RENT PSF RENT PSF - --------- ------ --- --------- --------- --------- PREVIOUSLY LEASED SPACE: 1st Quarter 13 32,324 $18.76 $24.84 $6.08 2nd Quarter 17 42,013 24.59 32.96 8.37 3rd Quarter 32 67,026 31.86 35.34 3.48 4th Quarter - -------------------------------------------------------------------- TOTAL OR AVERAGE 62 141,363 $26.70 $32.23 $5.53 ==================================================================== PREVIOUSLY VACANT SPACE: 1st Quarter 12 26,926 $ - $23.40 $23.40 2nd Quarter 22 36,904 - 27.35 27.35 3rd Quarter 34 102,111 - 20.97 20.97 4th Quarter - -------------------------------------------------------------------- TOTAL OR AVERAGE 68 165,941 - $22.78 $22.78 ====================================================================
TOTAL ANNUALIZED ANNUALIZED ANNUALIZED TENANT LEASING COSTS OF IMPROVEMENTS PSF COMMISSIONS PSF LEASING PSF (1) (1)(2) (1)(2) ---------------- --------------- ----------- 1st Quarter $1.76 $ - $1.76 2nd Quarter 2.50 - 2.50 3rd Quarter 4.00 - 4.00 4th Quarter - - -------------------------------------------------------- TOTAL OR AVERAGE $3.04 $ - $3.04 ======================================================== PREVIOUSLY VACANT SPACE: 1st Quarter $1.08 $ - $1.08 2nd Quarter 1.35 - 1.35 3rd Quarter 1.04 - 1.04 4th Quarter - -------------------------------------------------------- TOTAL OR AVERAGE $1.12 $ - $1.12 ========================================================
AVERAGE AVERAGE INCREASE/ PREVIOUS NEW BASE DECREASE BASE RENT RENT PSF IN BASE RENEWAL (3) NUMBER GLA PSF RENT PSF - ----------- ------ --- --------- --------- --------- 1st Quarter (4) 60 353,520 $12.09 $13.40 $1.31 2nd Quarter 80 178,337 21.69 22.57 0.88 3rd Quarter (5) 94 500,163 12.79 13.19 0.40 4th Quarter - ------------------------------------------------------------------- TOTAL OR AVERAGE 234 1,032,020 $14.09 $14.88 $0.79 ===================================================================
TOTAL ANNUALIZED ANNUALIZED ANNUALIZED TENANT LEASING COSTS OF RENEWAL (3) IMPROVEMENTS PSF COMMISSIONS PSF LEASING PSF (1) (1)(2) (1)(2) ---------------- --------------- ----------- 1st Quarter (4) $ - $ - $ - 2nd Quarter - - 3rd Quarter (5) 0.08 0.08 4th Quarter - ---------------------------------------------------------- TOTAL OR AVERAGE $0.04 $ - $0.04 ==========================================================
(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, lease extensions and modifications. (4) Includes an anchor lease of 176,834 square feet for a base rent of $1.20 per square foot. 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. (5) Includes an anchor lease of 91,164 square feet for a base rent of $1.86 per square foot. The other 93 renewal leases with 408,999 square feet had an average previous base rent psf of $15.23 and an average new base rent psf of $15.71 representing an increase of $0.48 in base rent psf. PAGE 23 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) CAPITAL EXPENDITURES
Q3 04 (3 months ended September 30, 2004) ----------------------------------------------------- RETAIL WHOLLY OWNED JOINT VENTURES TOTAL - -------------------------------------------------- ----------------------------------------------------- New development projects $ 14,913 $ - $ 14,913 Redevelopment projects with incremental GLA 4,695,901 4,695,901 and/or Anchor Replacement - - Renovation with no incremental GLA - - Tenant allowances 1,210,474 138,835 1,349,309 Operational capital expenditures at properties: - CAM expenditures 1,711,240 - 1,711,240 Non-CAM expenditures 1,090,374 10,613 1,100,987 ------------ ---------- ------------- SUBTOTAL OPERATIONAL CAPITAL EXPENDITURES AT PROPERTIES $ 2,801,614 $ 10,613 $ 2,812,227 ------------ ---------- ------------- TOTAL $ 8,722,902 $ 149,448 $ 8,872,350 ------------ ---------- -------------
PAGE 24 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
Q304 ENCLOSED MALLS -------------------------------------------------------------- (Includes Only Owned Space) TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR W/ANCHOR (NON-ANCHOR) (NON-ANCHOR) % LEASED % AVAILABLE % LEASED % AVAILABLE -------------------------------------------------------------- Beaver Valley Mall 89.1% 10.9% 76.7% 22.3% Capital City 98.4% 1.6% 97.2% 2.8% Chambersburg Mall 93.6% 6.4% 86.3% 13.7% Cherry Hill Mall 91.4% 8.6% 91.4% 8.6% Crossroads Mall 95.2% 4.8% 88.8% 11.2% Dartmouth Mall 94.8% 5.2% 91.3% 8.7% Echelon Mall 37.2% 62.8% 63.9% 36.1% Exton Square Mall 93.0% 7.0% 84.8% 15.2% Francis Scott Key Mall 96.5% 3.5% 92.9% 7.1% Jacksonville Mall 97.8% 2.2% 95.5% 4.5% Laurel Mall 95.2% 4.8% 87.1% 12.9% Lehigh Valley Mall 89.4% 10.6% 84.6% 15.4% Logan Valley Mall 97.2% 2.8% 93.3% 6.7% Lycoming Mall 89.7% 10.3% 80.0% 20.0% Magnolia Mall 93.4% 6.6% 83.1% 16.9% Moorestown Mall 94.5% 5.5% 87.5% 12.5% New River Valley Mall 77.5% 22.5% 83.3% 16.7% Nittany Mall 94.8% 5.2% 89.5% 10.5% North Hanover Mall 93.2% 6.8% 81.4% 18.6% Palmer Park Mall 99.2% 0.8% 97.2% 2.8% Patrick Henry Mall 99.3% 0.7% 98.5% 1.5% Phillipsburg Mall 90.6% 9.4% 78.1% 21.9% Plymouth Meeting 73.2% 26.8% 89.6% 10.4% Schuylkill Mall 76.5% 23.5% 69.2% 30.8% South Mall 96.8% 3.2% 94.0% 6.0% The Gallery at Market East 94.4% 5.6% 94.4% 5.6% The Gallery II at Market East 81.6% 18.4% 70.2% 29.8% The Mall at Prince Georges 86.2% 13.8% 87.3% 12.7% Uniontown Mall 95.7% 4.3% 89.2% 10.8% Valley Mall 99.2% 0.8% 98.5% 1.5% Valley View Mall 93.9% 6.1% 91.4% 8.6% Viewmont Mall 99.0% 1.0% 97.4% 2.6% Washington Crown Center 93.7% 6.3% 88.3% 11.7% Willow Grove Park 94.1% 5.9% 90.2% 9.8% Wiregrass Mall 83.4% 16.6% 83.4% 16.6% Wyoming Mall 97.4% 2.6% 92.5% 7.5% - ------------------------------------------------------------------------------------------------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE (1) 90.3% 9.7% 86.9% 13.1% - ------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------------- WHOLLY OWNED PROPERTIES (1) 90.2% 9.8% 87.0% 13.0% JOINT VENTURE PROPERTIES 92.0% 8.0% 85.4% 14.6% -------------------------------------------------------------- PRI-MANAGED (1) 90.2% 9.8% 87.0% 13.0% NON PRI-MANAGED 92.0% 8.0% 85.4% 14.6% -------------------------------------------------------------- SAME PROPERTIES/EXISTING 85.4% 14.6% 84.6% 15.4% NEW 93.4% 6.6% 88.5% 11.5% REDEVELOPMENT PROPERTIES 86.2% 13.8% 87.3% 12.7% -------------------------------------------------------------- CONTINUING OPERATIONS (1) 90.8% 9.2% 87.5% 12.5% DISCONTINUED OPERATIONS 76.5% 23.5% 69.2% 30.8% --------------------------------------------------------------
% 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 -0.7% 0.7% -1.5% 1.5% Capital City N/A N/A N/A N/A Chambersburg Mall N/A N/A N/A N/A Cherry Hill Mall -2.0% 2.0% -2.0% 2.0% Crossroads Mall N/A N/A N/A N/A Dartmouth Mall 13.4% -13.4% -1.8% 1.8% Echelon Mall -15.0% 15.0% -6.5% 6.5% Exton Square Mall -3.1% 3.1% -5.8% 5.8% Francis Scott Key Mall N/A N/A N/A N/A Jacksonville Mall N/A N/A N/A N/A Laurel Mall -1.1% 1.1% -2.9% 2.9% Lehigh Valley Mall -1.2% 1.2% -1.8% 1.8% Logan Valley Mall N/A N/A N/A N/A Lycoming Mall N/A N/A N/A N/A Magnolia Mall 0.1% -0.1% 3.8% -3.8% Moorestown Mall -1.7% 1.7% -3.9% 3.9% 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 0.7% -0.7% 2.2% -2.2% Patrick Henry Mall N/A N/A N/A N/A Phillipsburg Mall N/A N/A N/A N/A Plymouth Meeting -1.0% 1.0% -2.2% 2.2% Schuylkill Mall N/A N/A N/A N/A South Mall N/A N/A N/A N/A The Gallery at Market East 0.0% 0.0% 0.0% 0.0% The Gallery II at Market East N/A N/A N/A N/A The Mall at Prince Georges -2.6% 2.6% -5.6% 5.6% Uniontown Mall N/A N/A N/A N/A Valley Mall N/A N/A N/A N/A Valley View 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 Willow Grove Park -0.9% 0.9% -1.5% 1.5% Wiregrass Mall N/A N/A N/A N/A Wyoming Mall N/A N/A N/A N/A - ------------------------------------------------------------------------------------------------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE (1) 3.6% -3.6% -0.4% 0.4% - ------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------------- WHOLLY OWNED PROPERTIES (1) 5.5% -5.5% 0.0% 0.0% JOINT VENTURE PROPERTIES -2.6% 2.6% -3.3% 3.3% -------------------------------------------------------------- PRI-MANAGED (1) 4.6% -4.6% -0.3% 0.3% NON PRI-MANAGED -1.2% 1.2% -2.1% 2.1% -------------------------------------------------------------- SAME PROPERTIES/EXISTING -0.7% 0.7% -2.4% 2.4% NEW -1.6% 1.6% -3.2% 3.2% REDEVELOPMENT PROPERTIES -2.6% 2.6% -5.6% 5.6% -------------------------------------------------------------- CONTINUING OPERATIONS (1) 4.1% -4.1% 0.1% -0.1% DISCONTINUED OPERATIONS N/A N/A N/A N/A --------------------------------------------------------------
Q303 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 89.8% 10.2% 78.1% 21.9% Capital City N/A N/A N/A N/A Chambersburg Mall N/A N/A N/A N/A Cherry Hill Mall 93.3% 6.7% 93.3% 6.7% Crossroads Mall N/A N/A N/A N/A Dartmouth Mall 81.4% 18.6% 93.1% 6.9% Echelon Mall 52.2% 47.8% 70.4% 29.6% Exton Square Mall 96.1% 3.9% 90.5% 9.5% Francis Scott Key Mall N/A N/A N/A N/A Jacksonville Mall N/A N/A N/A N/A Laurel Mall 96.3% 3.7% 89.9% 10.1% Lehigh Valley Mall 90.7% 9.3% 86.4% 13.6% Logan Valley Mall N/A N/A N/A N/A Lycoming Mall N/A N/A N/A N/A Magnolia Mall 91.9% 8.1% 79.3% 20.7% Moorestown Mall 96.2% 3.8% 91.4% 8.6% 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 98.5% 1.5% 95.0% 5.0% Patrick Henry Mall N/A N/A N/A N/A Phillipsburg Mall N/A N/A N/A N/A Plymouth Meeting 74.3% 25.7% 91.8% 8.2% Schuylkill Mall N/A N/A N/A N/A South Mall N/A N/A N/A N/A The Gallery at Market East 94.5% 5.5% 94.5% 5.5% The Gallery II at Market East N/A N/A N/A N/A The Mall at Prince Georges 88.8% 11.2% 92.9% 7.1% Uniontown Mall N/A N/A N/A N/A Valley Mall N/A N/A N/A N/A Valley View 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 Willow Grove Park 95.0% 5.0% 91.7% 8.3% Wiregrass Mall N/A N/A N/A N/A Wyoming Mall N/A N/A N/A N/A - ------------------------------------------------------------------------------------------------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE (1) 86.7% 13.3% 87.4% 12.6% - ------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------------- WHOLLY OWNED PROPERTIES (1) 84.7% 15.3% 87.0% 13.0% JOINT VENTURE PROPERTIES 94.6% 5.4% 88.7% 11.3% -------------------------------------------------------------- PRI-MANAGED (1) 85.6% 14.4% 87.3% 12.7% NON PRI-MANAGED 93.2% 6.8% 87.5% 12.5% --------------------------------------------------------------- SAME PROPERTIES/EXISTING 86.1% 13.9% 87.0% 13.0% NEW 95.0% 5.0% 91.7% 8.3% REDEVELOPMENT PROPERTIES 88.8% 11.2% 92.9% 7.1% -------------------------------------------------------------- CONTINUING OPERATIONS (1) 86.7% 13.3% 87.4% 12.6% DISCONTINUED OPERATIONS N/A N/A N/A N/A --------------------------------------------------------------
(1) The Mall at Prince Georges is classified as a redevelopment property and is not included in the weighted average. PAGE 25 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
ENCLOSED MALLS (Includes Non-Anchor Owned Space) Q304 ------------------------------------------------------------------------ AVG BASE RENT AVG % RENT ADDITIONAL AVG COMP OCCUP. COST PSF(1) PSF(1) CHARGES PSF SALES PSF(2) RATIO ------------------------------------------------------------------------ Beaver Valley Mall $16.40 $0.47 $6.41 $241 9.66% Capital City 22.34 0.88 6.43 345 8.59% Chambersburg Mall 18.90 0.09 4.91 243 9.84% Cherry Hill Mall 35.93 0.96 18.37 426 12.97% Crossroads Mall 16.49 0.88 6.17 253 9.31% Dartmouth Mall 19.98 1.41 7.73 398 7.32% Echelon Mall 22.72 0.10 12.51 219 16.13% Exton Square Mall 35.26 0.70 14.93 375 13.57% Francis Scott Key Mall 20.59 0.65 6.92 274 10.28% Jacksonville Mall 21.91 1.40 6.43 357 8.33% Laurel Mall 13.83 0.49 5.44 260 7.60% Lehigh Valley Mall 31.82 0.64 10.26 423 10.10% Logan Valley Mall 20.82 1.38 7.28 300 9.83% Lycoming Mall 14.76 1.08 5.02 262 7.97% Magnolia Mall 24.69 0.38 10.16 323 10.91% Moorestown Mall 24.06 0.77 14.04 374 10.39% New River Valley Mall 19.48 0.49 4.10 256 9.40% Nittany Mall 20.30 0.98 7.24 257 11.10% North Hanover Mall 18.59 1.30 6.55 264 10.02% Palmer Park Mall 21.12 1.13 10.07 335 9.65% Patrick Henry Mall 31.22 1.76 10.10 439 9.81% Phillipsburg Mall 22.78 0.62 10.89 284 12.08% Plymouth Meeting 18.55 0.32 8.44 258 10.59% Schuylkill Mall 9.47 0.18 3.25 210 6.15% South Mall 14.57 0.32 4.96 263 7.55% The Gallery at Market East 33.44 0.52 9.90 341 12.86% The Gallery II at Market East 33.97 0.74 3.70 417 9.21% The Mall at Prince Georges (3) 24.99 1.34 13.89 366 10.99% Uniontown Mall 13.82 1.19 3.59 251 7.41% Valley Mall 18.07 0.90 5.17 319 7.57% Valley View Mall 23.00 0.57 13.00 309 11.84% Viewmont Mall 22.23 1.66 7.19 345 9.01% Washington Crown Center 16.60 0.13 4.56 248 8.59% Willow Grove Park 38.09 0.30 19.35 411 14.05% Wiregrass Mall 20.24 0.52 7.97 264 10.88% Wyoming Mall 23.47 0.43 7.82 321 9.88% - ------------------------------------------------------------------------------------------------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE (1) $22.89 $0.75 $8.84 $323 10.06% - ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------ WHOLLY OWNED PROPERTIES (1) $22.65 $0.76 $8.85 $318 10.14% JOINT VENTURE PROPERTIES $26.15 $0.59 $8.74 $395 8.97% ------------------------------------------------------------------------ PRI-MANAGED (1) $22.65 $0.76 $8.85 $318 10.14% NON PRI-MANAGED $26.15 $0.59 $8.74 $395 8.97% ------------------------------------------------------------------------ SAME PROPERTIES/EXISTING $25.72 $0.66 $11.24 $345 10.90% NEW $21.04 $0.81 $7.27 $309 9.43% REDEVELOPMENT PROPERTIES $24.99 $1.34 $13.89 $366 10.99% ------------------------------------------------------------------------ CONTINUING OPERATIONS (1) $23.24 $0.77 $8.99 $325 10.15% DISCONTINUED OPERATIONS $9.47 $0.18 $3.25 $210 6.15% ------------------------------------------------------------------------
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 -6.6% 9.6% 21.6% -0.8% 0.1% 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 2.0% 16.0% 13.9% 3.1% 0.3% Crossroads Mall N/A N/A N/A N/A N/A Dartmouth Mall 7.6% 0.7% 1.2% 1.5% 0.3% Echelon Mall -2.8% -51.3% 5.3% -9.5% 1.5% Exton Square Mall 4.0% 36.8% 76.3% 3.3% 1.8% 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 5.6% -3.4% 15.8% -1.1% 0.6% Lehigh Valley Mall 5.9% 5.3% 4.9% -2.0% 0.7% 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 1.4% -68.7% 16.5% 1.9% 0.1% Moorestown Mall -1.3% 22.7% 10.6% 13.0% -1.0% New River Valley Mall N/A N/A N/A N/A N/A Nittany Mall N/A N/A N/A N/A N/A North Hanover Mall N/A N/A N/A N/A N/A Palmer Park Mall -0.9% -6.5% 8.0% 0.6% 0.1% 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 -1.7% -31.6% 3.1% -2.3% 0.2% Schuylkill 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 4.0% 42.2% 121.2% -16.8% 3.8% The Gallery II at Market East N/A N/A N/A N/A N/A The Mall at Prince Georges (3) 7.1% 23.0% 31.7% -8.0% 2.2% Uniontown Mall N/A N/A N/A N/A N/A Valley Mall N/A N/A N/A N/A N/A Valley View 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 Willow Grove Park 1.4% -14.5% 7.7% 1.7% 0.2% Wiregrass Mall N/A N/A N/A N/A N/A Wyoming Mall N/A N/A N/A N/A N/A - ------------------------------------------------------------------------------------------------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE (1) -13.0% 17.6% -13.8% -7.2% -0.6% - ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------ WHOLLY OWNED PROPERTIES (1) -15.6% 21.4% -17.2% -6.1% -1.1% JOINT VENTURE PROPERTIES 8.6% -13.8% 4.4% 1.1% 0.5% ------------------------------------------------------------------------ PRI-MANAGED (1) -14.9% 17.2% -16.8% -6.0% -1.1% NON PRI-MANAGED 6.0% 2.9% 7.0% -2.4% 0.7% ------------------------------------------------------------------------ SAME PROPERTIES/EXISTING 1.5% -0.5% 17.4% 0.8% 0.5% NEW -44.0% 128.6% -59.5% -23.6% -4.4% REDEVELOPMENT PROPERTIES 7.1% 23.0% 31.7% -8.0% 2.2% ------------------------------------------------------------------------ CONTINUING OPERATIONS (1) -11.7% 19.9% -12.4% -6.7% -0.5% DISCONTINUED OPERATIONS N/A N/A N/A N/A N/A ------------------------------------------------------------------------
ENCLOSED MALLS (Includes Non-Anchor Owned Space) Q303 ------------------------------------------------------------------------ AVG BASE RENT AVG % RENT ADDITIONAL AVG COMP OCCUP. COST PSF(1) PSF(1) CHARGES PSF SALES PSF(2) RATIO ------------------------------------------------------------------------ Beaver Valley Mall $17.56 $0.43 $5.27 $243 9.57% 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 35.24 0.83 16.12 413 12.64% Crossroads Mall N/A N/A N/A N/A N/A Dartmouth Mall 18.57 1.40 7.64 392 7.04% Echelon Mall 23.38 0.20 11.88 242 14.65% Exton Square Mall 33.91 0.51 8.47 363 11.82% 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 13.10 0.51 4.69 263 6.96% Lehigh Valley Mall 30.05 0.61 9.78 432 9.37% 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 24.36 1.22 8.72 317 10.82% Moorestown Mall 24.37 0.63 12.70 331 11.39% New River Valley Mall N/A N/A N/A N/A N/A Nittany Mall N/A N/A N/A N/A N/A North Hanover Mall N/A N/A N/A N/A N/A Palmer Park Mall 21.30 1.21 9.33 333 9.56% 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 18.87 0.47 8.19 264 10.43% Schuylkill 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 32.14 0.36 4.48 410 9.02% The Gallery II at Market East N/A N/A N/A N/A N/A The Mall at Prince Georges (3) 23.34 1.09 10.54 398 8.79% Uniontown Mall N/A N/A N/A N/A N/A Valley Mall N/A N/A N/A N/A N/A Valley View 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 Willow Grove Park 37.55 0.35 17.96 404 13.83% Wiregrass Mall N/A N/A N/A N/A N/A Wyoming Mall N/A N/A N/A N/A N/A - ------------------------------------------------------------------------------------------------------------------------------------ ENCLOSED MALLS WEIGHTED AVERAGE (1) $26.32 $0.64 $10.26 $348 10.69% - ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------ WHOLLY OWNED PROPERTIES (1) $26.83 $0.63 $10.69 $339 11.25% JOINT VENTURE PROPERTIES $24.09 $0.69 $8.37 $391 8.47% ------------------------------------------------------------------------ PRI-MANAGED (1) $26.62 $0.65 $10.63 $339 11.19% NON PRI-MANAGED $24.68 $0.57 $8.17 $405 8.25% ------------------------------------------------------------------------ SAME PROPERTIES/EXISTING $25.33 $0.66 $9.58 $342 10.39% NEW $37.55 $0.35 $17.96 $404 13.83% REDEVELOPMENT PROPERTIES $23.34 $1.09 $10.54 $398 8.79% ------------------------------------------------------------------------ CONTINUING OPERATIONS (1) $26.32 $0.64 $10.26 $348 10.69% DISCONTINUED OPERATIONS N/A N/A N/A N/A N/A ------------------------------------------------------------------------
(1) Base rent is actual for Q304. Additional charges and % rent are projections for 2004. (2) Average comparable sales for Q303 are actual. (3) The Mall at Prince Georges is classified as a redevelopment property and is not included in the weighted average. PAGE 26 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) POWER CENTERS (Includes Non-Anchor Owned Space)
Q304 ------------------------------------------- AVG BASE RENT AVG % RENT ADDITIONAL PSF (1) PSF (1) CHARGES PSF ------------------------------------------- Christiana Power Center $20.44 $ - $1.95 Creekview Shopping Center 14.37 - 2.80 Northeast Tower Center 14.53 - 3.71 Paxton Towne Centre 16.12 - 2.56 The Court at Oxford Valley 15.37 - 3.90 Red Rose Commons 13.86 0.06 3.21 Whitehall Mall 10.69 0.33 3.10 Metroplex Shopping Center 18.13 - 3.58 ------------------------------------------- POWER CENTERS WEIGHTED AVERAGE $15.49 $0.05 $3.22 ------------------------------------------- ------------------------------------------- WHOLLY OWNED PROPERTIES $16.16 $ - $2.75 JOINT VENTURE PROPERTIES $15.13 $0.07 $3.48 ------------------------------------------- PRI-MANAGED $16.16 $ - $2.75 NON PRI-MANAGED $15.13 $0.07 $3.48 ------------------------------------------- SAME PROPERTIES/EXISTING $15.49 $0.05 $3.22 ------------------------------------------- NEW N/A N/A N/A REDEVELOPMENT PROPERTIES N/A N/A N/A -------------------------------------------
% CHANGE ------------------------------------------- AVG BASE RENT AVG % RENT ADDITIONAL PSF PSF CHARGES PSF ------------------------------------------- Christiana Power Center 5.5% N/A 6.1% Creekview Shopping Center 0.2% N/A 2.1% Northeast Tower Center 6.8% N/A 9.2% Paxton Towne Centre 1.2% N/A -2.0% The Court at Oxford Valley 1.6% -100.0% 3.5% Red Rose Commons 4.8% 250.0% 11.2% Whitehall Mall 0.5% -9.0% 3.0% Metroplex Shopping Center 0.0% N/A 3.7% ------------------------------------------- POWER CENTERS WEIGHTED AVERAGE 2.4% -5.6% 4.2% ------------------------------------------- ------------------------------------------- WHOLLY OWNED PROPERTIES 3.9% N/A 1.1% JOINT VENTURE PROPERTIES 1.6% -7.7% 5.2% ------------------------------------------- PRI-MANAGED 3.9% N/A 1.1% NON PRI-MANAGED 1.6% -7.7% 5.2% ------------------------------------------- SAME PROPERTIES/EXISTING 2.4% -5.6% 4.2% ------------------------------------------- NEW N/A N/A N/A REDEVELOPMENT PROPERTIES N/A N/A N/A -------------------------------------------
Q303 ------------------------------------------- AVG BASE RENT AVG % RENT ADDITIONAL PSF (1) PSF (1) CHARGES PSF ------------------------------------------- Christiana Power Center $19.37 $ - $1.84 Creekview Shopping Center 14.33 - 2.74 Northeast Tower Center 13.61 - 3.40 Paxton Towne Centre 15.93 - 2.61 The Court at Oxford Valley 15.13 0.03 3.77 Red Rose Commons 13.22 0.02 2.89 Whitehall Mall 10.64 0.36 3.01 Metroplex Shopping Center 18.13 - 3.45 ------------------------------------------- POWER CENTERS WEIGHTED AVERAGE $15.13 $0.05 $3.09 ------------------------------------------- ------------------------------------------- WHOLLY OWNED PROPERTIES $15.55 $ - $2.72 JOINT VENTURE PROPERTIES $14.89 $0.08 $3.31 ------------------------------------------- PRI-MANAGED $15.55 $ - $2.72 NON PRI-MANAGED $14.89 $0.08 $3.31 ------------------------------------------- SAME PROPERTIES/EXISTING $15.13 $0.05 $3.09 ------------------------------------------- NEW N/A N/A N/A REDEVELOPMENT PROPERTIES N/A N/A N/A -------------------------------------------
(1) Base rent is actual for Q304. Additional charges and % rent are projections for 2004.
Q304 ---------------------------------------------------------------- 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 89.7% 10.3% 75.4% 24.6% 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 97.4% 2.6% 94.0% 6.0% Metroplex Shopping Center 100.0% 0.0% 100.0% 0.0% ---------------------------------------------------------------- POWER CENTERS WEIGHTED AVERAGE 96.8% 3.2% 95.0% 5.0% ---------------------------------------------------------------- ---------------------------------------------------------------- WHOLLY OWNED PROPERTIES 93.9% 6.1% 88.9% 11.1% JOINT VENTURE PROPERTIES 99.1% 0.9% 98.6% 1.4% ---------------------------------------------------------------- PRI-MANAGED 93.9% 6.1% 88.9% 11.1% NON PRI-MANAGED 99.1% 0.9% 98.6% 1.4% ---------------------------------------------------------------- SAME PROPERTIES/EXISTING 96.8% 3.2% 95.0% 5.0% 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 -10.3% 10.3% -24.6% 24.6% 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 -0.3% 0.3% -0.7% 0.7% Metroplex Shopping Center 0.0% 0.0% 0.0% 0.0% ---------------------------------------------------------------- POWER CENTERS WEIGHTED AVERAGE -0.9% 0.9% -1.4% 1.4% ---------------------------------------------------------------- ---------------------------------------------------------------- WHOLLY OWNED PROPERTIES -2.9% 2.9% -5.4% 5.4% JOINT VENTURE PROPERTIES 0.7% -0.7% 1.0% -1.0% ---------------------------------------------------------------- PRI-MANAGED -2.9% 2.9% -5.4% 5.4% NON PRI-MANAGED 0.7% -0.7% 1.0% -1.0% ---------------------------------------------------------------- SAME PROPERTIES/EXISTING -0.9% 0.9% -1.4% 1.4% NEW N/A N/A N/A N/A REDEVELOPMENT PROPERTIES N/A N/A N/A N/A ----------------------------------------------------------------
Q303 ---------------------------------------------------------------- TOTAL TOTAL IN-LINE ONLY IN-LINE W/ANCHOR % W/ANCHOR % (NON-ANCHOR) (NON-ANCHOR) LEASED AVAILABLE % LEASED % AVAILABLE ---------------------------------------------------------------- Christiana Power Center 100.0% 0.0% 100.0% 0.0% Creekview Shopping Center 100.0% 0.0% 100.0% 0.0% Northeast Tower Center 100.0% 0.0% 100.0% 0.0% Paxton Towne 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 (SEPTEMBER 30, 2004) STRIP CENTERS (Includes Non-Anchor Owned Space)
Q304 % Change ------------------------------------------------ ------------------------------------------------ AVG BASE RENT AVG % RENT ADDITIONAL AVG BASE RENT AVG % RENT ADDITIONAL PSF (1) PSF (1) CHARGES PSF PSF PSF CHARGES PSF ------------------------------------------------ ------------------------------------------------ Crest Plaza Shopping $15.83 $- $3.92 4.1% N/A 4.7% Center Festival at Exton 16.54 - 3.61 -0.1% N/A -7.2% The Commons at Magnolia 12.98 - 1.96 1.3% -100.0% 24.5% South Blanding Village 9.35 - 2.46 4.4% N/A -5.8% Springfield Park I & II 17.71 - 5.42 -1.4% N/A 0.4% ------------------------------------------------ ------------------------------------------------ STRIP CENTERS WEIGHTED AVERAGE $14.91 $- $3.42 1.3% -100.0% 0.5% ------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ------------------------------------------------ WHOLLY OWNED PROPERTIES $14.50 $- $3.13 2.0% -100.0% 1.1% JOINT VENTURE PROPERTIES $17.71 $- $5.42 -1.4% N/A 0.4% ------------------------------------------------ ------------------------------------------------ PRI-MANAGED $14.91 $- $3.42 1.3% -100.0% 0.5% NON PRI-MANAGED N/A N/A N/A N/A N/A N/A ------------------------------------------------ ------------------------------------------------ SAME PROPERTIES/EXISTING $14.91 $- $3.42 1.3% -100.0% 0.5% NEW N/A N/A N/A N/A N/A N/A REDEVELOPMENT PROPERTIES N/A N/A N/A N/A N/A N/A ------------------------------------------------ ------------------------------------------------ Q303 ------------------------------------------------ AVG BASE RENT AVG % RENT ADDITIONAL PSF (1) PSF (1) CHARGES PSF ------------------------------------------------ Crest Plaza Shopping Center $15.21 $- $3.74 Festival at Exton 16.56 - 3.89 The Commons at Magnolia 12.81 0.03 1.57 South Blanding Village 8.96 - 2.61 Springfield Park I & II 17.95 - 5.40 ------------------------------------------------ STRIP CENTERS WEIGHTED AVERAGE $14.72 $0.01 $3.41 ------------------------------------------------ ------------------------------------------------ WHOLLY OWNED PROPERTIES $14.21 $0.01 $3.09 JOINT VENTURE PROPERTIES $17.95 $- $5.40 ------------------------------------------------ PRI-MANAGED $14.72 $0.01 $3.41 NON PRI-MANAGED N/A N/A N/A ------------------------------------------------ SAME PROPERTIES/EXISTING $14.72 $0.01 $3.41 NEW N/A N/A N/A REDEVELOPMENT PROPERTIES N/A N/A N/A ------------------------------------------------
(1) Base rent is actual for Q304. Additional charges and % rent are projections for 2004.
OCCUPANCY Q304 CHANGE IN % OCCUPANCY ------------------------------------------------- ------------------------------------------------- IN-LINE IN-LINE ONLY IN-LINE ONLY IN-LINE TOTAL W/ TOTAL W/ (NON- (NON- TOTAL W/ TOTAL W/ (NON- (NON- ANCHOR % ANCHOR % ANCHOR) % ANCHOR) % ANCHOR % ANCHOR % ANCHOR) % ANCHOR) % LEASED AVAILABLE LEASED AVAILABLE LEASED AVAILABLE LEASED AVAILABLE ------------------------------------------------- ------------------------------------------------- Crest Plaza Shopping Center 96.4% 3.6% 93.8% 6.2% 11.7% -11.7% 20.3% -20.3% Festival at Exton 94.0% 6.0% 89.8% 10.2% -1.5% 1.5% -2.6% 2.6% The Commons at Magnolia 100.0% 0.0% 100.0% 0.0% 2.4% -2.4% 4.7% -4.7% South Blanding Village 96.8% 3.2% 89.6% 10.4% -0.6% 0.6% -1.8% 1.8% Springfield Park I & II 90.9% 9.1% 73.5% 26.5% 0.0% 0.0% 0.0% 0.0% ------------------------------------------------- ------------------------------------------------- STRIP CENTERS WEIGHTED AVERAGE 95.4% 4.6% 90.0% 10.0% 2.1% -2.1% 4.4% -4.4% ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- WHOLLY OWNED PROPERTIES 96.6% 3.4% 93.1% 6.9% 2.6% -2.6% 5.2% -5.2% JOINT VENTURE PROPERTIES 90.9% 9.1% 73.5% 26.5% N/A N/A N/A N/A ------------------------------------------------- ------------------------------------------------- PRI-MANAGED 95.4% 4.6% 90.0% 10.0% 2.1% -2.1% 4.4% -4.4% NON PRI-MANAGED N/A N/A N/A N/A N/A N/A N/A N/A ------------------------------------------------- ------------------------------------------------- SAME PROPERTIES/EXISTING 95.4% 4.6% 90.0% 10.0% 2.1% -2.1% 4.4% -4.4% NEW N/A N/A N/A N/A N/A N/A N/A N/A REDEVELOPMENT PROPERTIES N/A N/A N/A N/A N/A N/A N/A N/A ------------------------------------------------- ------------------------------------------------- Q303 ------------------------------------------------- IN-LINE ONLY IN-LINE TOTAL W/ TOTAL W/ (NON- (NON- ANCHOR % ANCHOR % ANCHOR) % 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% 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 93.3% 6.7% 85.6% 14.4% ------------------------------------------------- ------------------------------------------------- WHOLLY OWNED PROPERTIES 94.0% 6.0% 87.9% 12.1% JOINT VENTURE PROPERTIES 90.9% 9.1% 73.5% 26.5% ------------------------------------------------- PRI-MANAGED 93.3% 6.7% 85.6% 14.4% NON PRI-MANAGED N/A N/A N/A N/A ------------------------------------------------- SAME PROPERTIES/EXISTING 93.3% 6.7% 85.6% 14.4% NEW N/A N/A N/A N/A REDEVELOPMENT PROPERTIES N/A N/A N/A N/A -------------------------------------------------
PAGE 28 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) RETAIL PORTFOLIO (Includes Non-Anchor Owned Space)
Q304 % CHANGE ------------------------------------------------ ------------------------------------------------ ADDITIONAL ADDITIONAL AVG BASE AVG % CHARGES AVG BASE AVG % CHARGES PSF RENT PSF (1) RENT PSF (1) PSF (1) RENT PSF (1) RENT PSF (1) (1) ------------- ------------- ------------- ------------- ------------- ------------- ENCLOSED MALLS WEIGHTED AVERAGE $22.89 $0.75 $8.84 -13.0% 17.6% -13.8% POWER CENTERS WEIGHTED AVERAGE $15.49 $0.05 $3.22 2.4% -5.6% 4.2% STRIP CENTERS WEIGHTED AVERAGE $14.91 $ - $3.42 1.3% -100.0% 0.5% ------------- ------------- ------------- ------------- ------------- ------------- RETAIL PORTFOLIO WEIGHTED AVERAGE (2) $21.46 $0.62 $7.77 -4.1% 42.9% 0.2% ------------- ------------- ------------- ------------- ------------- ------------- WHOLLY OWNED PROPERTIES (2) $21.99 $0.69 $8.27 -9.4% 40.8% -7.5% JOINT VENTURE PROPERTIES $18.75 $0.24 $5.22 2.0% -21.4% -0.4% ------------- ------------- ------------- ------------- ------------- ------------- PRI-MANAGED (2) $21.98 $0.69 $8.26 -8.9% 35.3% -7.5% NON PRI-MANAGED $18.77 $0.24 $5.22 3.2% -0.8% 5.5% ------------- ------------- ------------- ------------- ------------- ------------- SAME PROPERTIES/EXISTING $21.86 $0.43 $8.24 1.5% -1.4% 14.8% NEW $21.04 $0.81 $7.27 -44.0% 128.6% -59.5% REDEVELOPMENT PROPERTIES $24.99 $1.34 $13.89 7.1% 23.0% 31.7% ------------- ------------- ------------- ------------- ------------- ------------- Q303 ------------------------------------------------ AVG BASE RENT AVG % ADDITIONAL PSF (1) RENT PSF (1) CHARGES PSF (1) ------------- ------------- -------------- ENCLOSED MALLS WEIGHTED AVERAGE $26.83 $0.63 $10.69 POWER CENTERS WEIGHTED AVERAGE $15.13 $0.05 $3.09 STRIP CENTERS WEIGHTED AVERAGE $14.72 $0.01 $3.41 ------------- ------------- ------------- RETAIL PORTFOLIO WEIGHTED AVERAGE (2) $22.37 $0.43 $7.75 ------------- ------------- ------------- WHOLLY OWNED PROPERTIES (2) $24.27 $0.49 $8.95 JOINT VENTURE PROPERTIES $18.38 $0.31 $5.24 ------------- ------------- ------------- PRI-MANAGED (2) $24.13 $0.51 $8.93 NON PRI-MANAGED $18.18 $0.25 $4.95 ------------- ------------- ------------- SAME PROPERTIES/EXISTING $21.53 $0.43 $7.18 NEW $37.55 $0.35 $17.96 REDEVELOPMENT PROPERTIES $23.34 $1.09 $10.54 ------------- ------------- -------------
(1) Base rent is actual for Q304. Additional charges and % rent are projections for 2004. (2) The Mall at Prince Georges is classified as Redevelopment Property and is not included in the weighted average.
(Includes Only Owned Space) OCCUPANCY Q304 CHANGE IN % OCCUPANCY ------------------------------------------------- ------------------------------------------------- IN-LINE IN-LINE ONLY IN-LINE ONLY IN-LINE TOTAL W/ TOTAL W/ (NON- (NON- TOTAL W/ TOTAL W/ (NON- (NON- ANCHOR % ANCHOR % ANCHOR)% ANCHOR) % ANCHOR % ANCHOR % ANCHOR) % ANCHOR) % LEASED AVAILABLE LEASED AVAILABLE LEASED AVAILABLE LEASED AVAILABLE --------- --------- --------- --------- --------- --------- --------- --------- ENCLOSED MALLS WEIGHTED AVERAGE 90.3% 9.7% 86.9% 13.1% 3.6% -3.6% -0.4% 0.4% POWER CENTERS WEIGHTED AVERAGE 97.8% 3.2% 95.0% 5.0% -0.9% 0.9% -1.4% 1.4% STRIP CENTERS WEIGHTED AVERAGE 94.4% 4.6% 90.0% 10.0% 2.1% -2.1% 4.4% -4.4% --------- --------- --------- --------- --------- --------- --------- --------- RETAIL PORTFOLIO WEIGHTED AVERAGE (1) 91.3% 8.7% 88.2% 11.8% 1.5% -1.5% -1.7% 1.7% --------- --------- --------- --------- --------- --------- --------- --------- WHOLLY OWNED PROPERTIES (1) 90.6% 9.4% 87.3% 12.7% 3.5% -3.5% -1.0% 1.0% JOINT VENTURE PROPERTIES 95.9% 4.1% 93.4% 6.6% -0.4% 0.4% -0.2% 0.2% --------- --------- --------- --------- --------- --------- --------- --------- PRI-MANAGED (1) 90.6% 9.4% 87.2% 12.8% 2.9% -2.9% -1.1% 1.1% NON PRI-MANAGED 96.1% 3.9% 93.8% 6.2% -0.1% 0.1% -0.1% 0.1% --------- --------- --------- --------- --------- --------- --------- --------- SAME PROPERTIES/EXISTING 89.1% 10.9% 88.0% 12.0% -0.5% 0.5% -1.8% 1.8% NEW 93.4% 6.6% 88.5% 11.5% -1.6% 1.6% -3.2% 3.2% REDEVELOPMENT PROPERTIES 86.2% 13.8% 87.3% 12.7% -2.6% 2.6% -5.6% 5.6% --------- --------- --------- --------- --------- --------- --------- --------- Q303 ------------------------------------------------- IN-LINE ONLY IN-LINE TOTAL W/ TOTAL W/ (NON- (NON- ANCHOR % ANCHOR % ANCHOR) % ANCHOR) % LEASED AVAILABLE LEASED AVAILABLE --------- --------- --------- --------- ENCLOSED MALLS WEIGHTED AVERAGE 86.7% 13.3% 87.4% 12.6% POWER CENTERS WEIGHTED AVERAGE 97.7% 2.3% 96.4% 3.6% STRIP CENTERS WEIGHTED AVERAGE 93.3% 6.7% 85.6% 14.4% --------- --------- --------- --------- RETAIL PORTFOLIO WEIGHTED AVERAGE (1) 89.8% 10.2% 89.9% 10.1% --------- --------- --------- --------- WHOLLY OWNED PROPERTIES (1) 87.1% 12.9% 88.2% 11.8% JOINT VENTURE PROPERTIES 96.3% 3.7% 93.6% 6.4% --------- --------- --------- --------- PRI-MANAGED (1) 87.7% 12.3% 88.3% 11.7% NON PRI-MANAGED 96.2% 3.8% 94.0% 6.0% --------- --------- --------- --------- SAME PROPERTIES/EXISTING 89.6% 10.4% 89.8% 10.2% NEW 95.0% 5.0% 91.7% 8.3% REDEVELOPMENT PROPERTIES 88.8% 11.2% 92.9% 7.1% --------- --------- --------- ---------
(1) The Mall at Prince Georges 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 (SEPTEMBER 30, 2004) 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
---------------------------------------------------------------------------- SEPTEMBER 30, 2004 ---------------------------------------------------------------------------- RETAIL OFFICE/INDUSTRIAL TOTAL ---------------------------------------------------------------------------- # SQ FT # SQ FT # SQ FT ---------------------------------------------------------------------------- MANAGED PORTFOLIO PREIT-Owned (1) 42 26,885,354 4 254,791 46 27,140,145 Non-PREIT Owned 11 2,770,188 3 757,238 14 3,527,426 ---------------------------------------------------------------------------- TOTAL 53 29,655,542 7 1,012,029 60 30,667,571 ---------------------------------------------------------------------------- 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 6 4,081,249 - - 6 4,081,249 Non-PREIT Owned - - - - - - ---------------------------------------------------------------------------- TOTAL 6 4,081,249 - - 6 4,081,249 ---------------------------------------------------------------------------- TOTAL PORTFOLIO PREIT-Owned 48 30,966,603 4 254,791 52 31,221,394 Non-PREIT Owned 12 3,273,904 4 876,720 16 4,150,624 ---------------------------------------------------------------------------- TOTAL 60 34,240,507 8 1,131,511 68 35,372,018 ----------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------- 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 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 - -------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------- NET GAIN (LOSS) IN CONTRACTS - --------------------------------------------------------------------------------------------------------------- RETAIL OFFICE/INDUSTRIAL TOTAL - --------------------------------------------------------------------------------------------------------------- # SQ FT # SQ FT # SQ FT - --------------------------------------------------------------------------------------------------------------- MANAGED PORTFOLIO PREIT-Owned (1) (5) (2,616,514) - - (5) (2,616,514) Non-PREIT Owned - - - - - - - --------------------------------------------------------------------------------------------------------------- TOTAL (5) (2,616,514) - - (5) (2,616,514) - --------------------------------------------------------------------------------------------------------------- LEASED PORTFOLIO PREIT-Owned - - - - - - Non-PREIT Owned - - - - - - - --------------------------------------------------------------------------------------------------------------- TOTAL - - - - - - - --------------------------------------------------------------------------------------------------------------- ASSET MANAGED PORTFOLIO PREIT-Owned (1) (173,591) - - (1) (173,591) Non-PREIT Owned - - - - - - - --------------------------------------------------------------------------------------------------------------- TOTAL (1) (173,591) - - (1) (173,591) - --------------------------------------------------------------------------------------------------------------- TOTAL PORTFOLIO PREIT-Owned Non-PREIT Owned (6) (2,790,105) - - (6) (2,790,105) - - - - - - - --------------------------------------------------------------------------------------------------------------- TOTAL (6) (2,790,105) - - (6) (2,790,105) - ---------------------------------------------------------------------------------------------------------------
(1) The decrease in the Managed Portfolio, PREIT-Owned is a result of the sale of 5 non-core properties. The decrease in Asset Managed Portfolio, PREIT-Owned is a result of the sale of PREIT's 60% interest in Rio Grande Mall. PAGE 30 PENNSYLVANIA REIT FLASH REPORT (SEPTEMBER 30, 2004) - ---------------------------- QUARTERLY COMPARISON - -------------------- FINANCIAL STATEMENT [GRAPHIC OMITTED] [GRAPHIC OMITTED]
- ------------------------------------------------------------------------------------------------------------------------------------ Q3 04 (3 MONTHS ENDED 9/30/04) - ------------------------------------------------------------------------------------------------------------------------------------ CORPORATE/OTHER RETAIL PROPERTIES TOTAL % CHANGE - ------------------------------------------------------------------------------------------------------------------------------------ Real Estate Revenues: Same Store $47,986,137 $98,126 $48,084,263 4.9% New 58,998,938 - 58,998,938 N/A Redevelopment 3,970,546 - 3,970,546 N/A Discontinued Operations 98,400 - 98,400 -93.5% - ------------------------------------------------------------------------------------------------------------------------------------ Total Real Estate Revenues 111,054,020 98,126 111,152,146 106.1% - ------------------------------------------------------------------------------------------------------------------------------------ Operating Expenses: Same Store 16,781,678 13,550 16,795,228 -4.5% New 24,263,395 - 24,263,395 N/A Redevelopment 1,210,032 - 1,210,032 N/A Discontinued Operations 19,481 19,481 -97.5% - ------------------------------------------------------------------------------------------------------------------------------------ Total Operating Expenses 42,274,586 13,550 42,288,136 101.9% - ------------------------------------------------------------------------------------------------------------------------------------ NOI: Same Store 31,204,459 84,576 31,289,035 10.8% New 34,735,543 - 34,735,543 N/A Redevelopment 2,760,514 - 2,760,514 N/A Discontinued Operations 78,919 - 78,919 -89.3% - ------------------------------------------------------------------------------------------------------------------------------------ NOI 68,779,434 84,576 68,864,010 108.8% - ------------------------------------------------------------------------------------------------------------------------------------ OTHER INCOME (EXPENSES): Management Company Revenue - 1,831,296 1,831,296 24.1% Interest Income - 179,562 179,562 -17.3% General & Administrative Corporate Payroll and Benefits - (7,335,945) (7,335,945) 71.6% Other G&A Expenses - (4,199,168) (4,199,168) 3.7% - ------------------------------------------------------------------------------------------------------------------------------------ EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 68,779,434 (9,439,679) 59,339,755 125.3% - ------------------------------------------------------------------------------------------------------------------------------------ Interest Expense (19,072,935) (2,066,196) (21,139,131) 84.4% Depreciation and Amortization (23,673,732) (12,540) (23,686,272) 131.6% Gain (loss) on Sale of Interests in RE 1,529,183 1,529,183 N/A DISCONTINUED OPERATIONS Income from Disposed Real Estate - - - N/A Minority Interest of O.P. Unitholders - (197,095) (197,095) N/A Gain (loss) on Disposition of Discontinued Operations - - N/A - - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISCONTINUED OPERATIONS - (197,095) (197,095) N/A - ------------------------------------------------------------------------------------------------------------------------------------ Minority Interest in Properties (53,268) - (53,268) -82.9% Minority Interest of O.P. Unit Holders - (1,525,300) (1,525,300) 54.2% - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME 27,561,950 (13,240,810) 14,267,872 -59.1% - ------------------------------------------------------------------------------------------------------------------------------------ Gain on Sale of Real Estate (1,529,183) - (1,529,183) N/A Depreciation and Amor. of Real Estate 23,616,632 (52,460) 23,564,172 130.4% Dividends on preferred shares (3,403,125) (3,403,125) N/A FFO Adjustments - 1,722,395 1,722,395 -47.9% - ------------------------------------------------------------------------------------------------------------------------------------ FFO 49,649,399 (14,974,000) 34,622,131 138.7% - ------------------------------------------------------------------------------------------------------------------------------------ Adj. Straight Lining of Base Rents (1,269,906) - (1,269,906) 65.9% Recurring Capital Expenditures (2,812,227) - (2,812,227) 1117.0% Tenant allowances (1,349,309) (1,349,309) N/A Amortization of debt premium (4,829,622) (4,829,622) 177.2% Amortization of above- and below-market lease intangibles 184,590 184,590 N/A - ------------------------------------------------------------------------------------------------------------------------------------ FAD $39,572,925 (14,974,000) $24,545,657 115.1% - ------------------------------------------------------------------------------------------------------------------------------------ Total Dividends $21,688,390 70.5% Share Price (at close) $38.66 15.6% Weighted Average Number of Shares 35,695,353 83.2% WA number of Shares and O.P. Units 40,131,231 86.3% - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME PER SHARE (BASIC) $0.30 -83.0% FFO/SHARE AND O.P. UNITS $0.86 28.1% FAD/SHARE AND O.P. UNITS $0.61 15.5% DIVIDEND/SHARE AND O.P. UNITS $0.54 5.9% - ------------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------- Q3 03 (3 MONTHS ENDED 9/30/03) - ----------------------------------------------------------------------------------------------------------------------------------- CORPORATE/OTHER RETAIL MULTIFAMILY PROPERTIES TOTAL - ----------------------------------------------------------------------------------------------------------------------------------- Real Estate Revenues: Same Store $45,739,159 $ - $87,781 $45,826,940 New 3,278,891 - - 3,278,891 Redevelopment 3,305,639 - - 3,305,639 Discontinued Operations 178,175 1,331,576 - 1,509,751 - ----------------------------------------------------------------------------------------------------------------------------------- Total Real Estate Revenues 52,501,864 1,331,576 87,781 53,921,221 - ----------------------------------------------------------------------------------------------------------------------------------- Operating Expenses: Same Store 17,584,480 - 3,884 17,588,364 New 1,389,060 - - 1,389,060 Redevelopment 1,197,273 - - 1,197,273 Discontinued Operations 59,586 712,486 772,072 - ----------------------------------------------------------------------------------------------------------------------------------- Total Operating Expenses 20,230,399 712,486 3,884 20,946,769 - ----------------------------------------------------------------------------------------------------------------------------------- NOI: Same Store 28,154,679 - 83,897 28,238,576 New 1,889,831 - - 1,889,831 Redevelopment 2,108,366 - - 2,108,366 Discontinued Operations 118,589 619,090 737,679 - ----------------------------------------------------------------------------------------------------------------------------------- NOI 32,271,465 619,090 83,897 32,974,452 - ----------------------------------------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSES): Management Company Revenue - - 1,475,135 1,475,135 Interest Income - - 217,023 217,023 General & Administrative Corporate Payroll and Benefits - - (4,274,156) (4,274,156) Other G&A Expenses - - (4,049,052) (4,049,052) - ----------------------------------------------------------------------------------------------------------------------------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 32,271,465 619,090 (6,547,153) 26,343,402 - ----------------------------------------------------------------------------------------------------------------------------------- Interest Expense (11,243,044) (222,542) - (11,465,586) Depreciation and Amortization (10,213,658) - (12,788) (10,226,446) Gain (loss) on Sale of Interests in RE - 6,228,839 - 6,228,839 DISCONTINUED OPERATIONS Income from Disposed Real Estate - - - - Minority Interest of O.P. Unitholders - - (2,382,461) (2,382,461) Gain (loss) on Disposition of Discontinued Operations - 27,725,759 - 27,725,759 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS - 27,725,759 (2,382,461) 25,343,298 - ----------------------------------------------------------------------------------------------------------------------------------- Minority Interest in Properties (310,751) - - (310,751) Minority Interest of O.P. Unit Holders - - (989,253) (989,253) - ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME 10,814,763 34,351,146 (9,931,655) 34,923,503 - ----------------------------------------------------------------------------------------------------------------------------------- Gain on Sale of Real Estate - (33,954,598) - (33,954,598) Depreciation and Amor. of Real Estate 10,213,658 - 12,788 10,226,446 Dividends on preferred shares - - - - FFO Adjustments - - 3,306,714 3,306,714 - ----------------------------------------------------------------------------------------------------------------------------------- FFO 21,028,421 396,548 (6,612,153) 14,502,065 - ----------------------------------------------------------------------------------------------------------------------------------- Adj. Straight Lining of Base Rents (765,238) - - (765,238) Recurring Capital Expenditures (108,438) (122,635) - (231,073) Tenant allowances (591,471) (591,471) Amortization of debt premium (1,742,283) (1,742,283) Amortization of above- and below-market lease intangibles 237,319 - - 237,319 - ----------------------------------------------------------------------------------------------------------------------------------- FAD $18,058,310 $273,913 (6,612,153) $11,409,319 - ----------------------------------------------------------------------------------------------------------------------------------- Total Dividends $12,718,682 Share Price (at close) $33.45 Weighted Average Number of Shares 19,488,367 WA number of Shares and O.P. Units 21,537,479 - ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME PER SHARE (BASIC) $1.79 FFO/SHARE AND O.P. UNITS $0.67 FAD/SHARE AND O.P. UNITS $0.53 DIVIDEND/SHARE AND O.P. UNITS $0.51 - -----------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
- ----------------------------------------------------------------------------------------------------------------------------------- Q3 04 - ----------------------------------------------------------------------------------------------------------------------------------- CORPORATE/OTHER RETAIL PROPERTIES TOTAL % CHANGE - ----------------------------------------------------------------------------------------------------------------------------------- Investment in Real Estate, at cost $2,513,835,536 $35,646,218 $2,549,481,754 94.6% Accumulated Depreciation (161,829,915) (2,114,391) (163,944,306) 68.4% Advances to Partnership and JVs - - - N/A Other Assets 248,904,286 58,772,990 307,677,276 75.7% - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $2,600,909,907 $92,304,817 $2,693,214,724 93.9% - ----------------------------------------------------------------------------------------------------------------------------------- Mortgage Notes $1,366,090,242 $ - $1,366,090,242 84.8% Line of Credit - 112,000,000 112,000,000 N/A Acquisition Term Loan & Unsecured Line of Credit - - - N/A Other Liabilities 49,496,838 32,241,800 81,738,638 88.6% - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $1,415,587,080 $144,241,800 $1,559,828,880 99.4% - ----------------------------------------------------------------------------------------------------------------------------------- Minority Interest $3,702,340 $129,072,186 $132,774,526 106.6% Total Shareholders Equity - 1,000,611,318 1,000,611,318 84.5% - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDER EQUITY $1,419,289,420 $1,273,925,304 $2,693,214,724 93.9% - -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------- Q3 03 - ----------------------------------------------------------------------------------------------------------------------------------- CORPORATE/OTHER RETAIL MULTIFAMILY PROPERTIES TOTAL - ----------------------------------------------------------------------------------------------------------------------------------- Investment in Real Estate, at cost $1,289,890,542 $ 0 $20,178,064 $1,310,068,606 Accumulated Depreciation (95,312,157) - (2,064,231) (97,376,388) Advances to Partnership and JVs - - 1,200,000 1,200,000 Other Assets 114,932,077 1,177,015 59,001,877 175,110,969 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $1,309,510,462 $1,177,015 $78,315,710 $1,389,003,187 - ----------------------------------------------------------------------------------------------------------------------------------- Mortgage Notes $739,061,360 $ 0 $ - $739,061,360 Line of Credit - - - - Acquisition Term Loan & Unsecured Line of Credit - - - - Other Liabilities 27,237,935 951,750 15,155,079 43,344,764 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $766,299,295 $951,750 $15,155,079 $782,406,124 - ----------------------------------------------------------------------------------------------------------------------------------- Minority Interest $5,991,467 - $58,270,123 $64,261,590 Total Shareholders Equity - - 542,335,473 542,335,473 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDER EQUITY $772,290,762 $951,750 $615,760,675 $1,389,003,187 - -----------------------------------------------------------------------------------------------------------------------------------
RATIOS
- ----------------------------------------------------------------------------------------------------------------------------------- Q3 04 Change Q3 03 - ----------------------------------------------------------------------------------------------------------------------------------- NOI/Investment in Real Estate 2.7% 0.2% 2.5% Total Dividends/Total FFO 62.6% -25.1% 87.7% Dividends/FFO per share 62.6% -13.1% 75.7% - -----------------------------------------------------------------------------------------------------------------------------------
NOTE: RECONCILIATION TO GAAP IS ON PAGES 32 TO 35. PAGE 31 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) BALANCE SHEET-RECONCILIATION TO GAAP (Wholly Owned vs. JVs)
-------------------------------------------------------------------------------------------- SEPTEMBER 30, 2004 -------------------------------------------------------------------------------------------- COMBINED ADJUSTMENTS TO SUBTOTAL ASSETS HELD TOTAL TOTAL (1) EQUITY METHOD FOR SALE -------------------------------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties $2,513,835,536 $(131,428,634) $2,382,406,902 $ (8,102,171) $2,374,304,731 Multifamily Properties - - - - - Industrial Properties 2,504,211 - 2,504,211 - 2,504,211 Lend Held for Development 9,542,722 - 9,542,722 - 9,542,722 Construction In Progress 23,599,285 (1,693,762) 21,905,523 - 21,905,523 -------------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN REAL ESTATE 2,549,481,754 (133,122,396) 2,416,359,358 (8,102,171) 2,408,257,187 Accumulated Depreciation (163,944,306) 31,124,661 (132,819,645) - (132,819,645) -------------------------------------------------------------------------------------------- Net Real Estate 2,385,537,448 (101,997,735) 2,283,539,713 (8,102,171) 2,275,437,542 -------------------------------------------------------------------------------------------- Investment in and advances to Partnerships and JVs - 28,700,295 28,700,295 - 28,700,295 -------------------------------------------------------------------------------------------- 2,385,537,448 (73,297,440) 2,312,240,008 (8,102,171) 2,304,137,837 -------------------------------------------------------------------------------------------- Other Assets: Cash and Cash Equivalents 35,824,104 (5,423,522) 30,400,582 30,400,582 Rents and Other Receivables 32,523,063 (6,894,906) 25,628,157 - 25,628,157 Assets held for sale 6,441,947 - 6,441,947 8,102,171 14,544,118 Intangible Assets (2) 163,274,661 - 163,274,661 - 163,274,661 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 69,613,501 (11,015,164) 58,598,337 58,598,337 -------------------------------------------------------------------------------------------- TOTAL OTHER ASSETS 307,677,276 (23,333,592) 284,343,684 8,102,171 292,445,855 -------------------------------------------------------------------------------------------- TOTAL ASSETS 2,693,214,724 (96,631,032) 2,596,583,692 - 2,596,583,692 -------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 1,305,144,423 (108,055,084) 1,197,089,339 (17,228,605) 1,179,860,734 Mortgage Debt Premium (3) 60,945,819 - 60,945,819 - 60,945,819 Bank Loans Payable 112,000,000 - 112,000,000 - 112,000,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Assets held for sale 707,595 - 707,595 17,228,605 17,936,200 Other Liabilities (4) 81,031,043 11,424,052 92,455,095 92,455,095 -------------------------------------------------------------------------------------------- TOTAL LIABILITIES 1,559,828,880 (96,631,032) 1,463,197,848 - 1,463,197,848 -------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------- Minority Interest 132,774,526 - 132,774,526 - 132,774,526 -------------------------------------------------------------------------------------------- Shareholders' Equity: Shares of Beneficial 36,094,566 - 36,094,566 - 36,094,566 Interest at $1 Par Preferred Shares $0.01 Par 24,750 - 24,750 - 24,750 Capital Contributed in Excess of Par 892,853,369 - 892,853,369 - 892,853,369 Restricted Stock (8,593,279) - (8,593,279) - (8,593,279) Other Comprehensive Income (1,830,568) - (1,830,568) - (1,830,568) Retained Earnings (Distributions in Excess of Net Income) 82,062,480 - 82,062,480 - 82,062,480 -------------------------------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY 1,000,611,318 - 1,000,611,318 - 1,000,611,318 -------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,693,214,724 $(96,631,032) $2,596,583,692 $ - $2,596,583,692 --------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------- DECEMBER 31, 2003 -------------------------------------------------------------------------------------------- COMBINED ADJUSTMENTS TO SUBTOTAL ASSETS HELD TOTAL TOTAL (1) EQUITY METHOD FOR SALE -------------------------------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties $2,515,861,018 $(133,107,107) $2,382,753,911 $(118,887,475) $2,263,866,436 Multifamily Properties - - - - Industrial Properties 2,504,211 - 2,504,211 - 2,504,211 Lend Held for Development Construction In Progress 21,736,991 (1,506,178) 20,230,813 - 20,230,813 -------------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN REAL ESTATE 2,540,102,220 (134,613,285) 2,405,488,935 (118,887,475) 2,286,601,460 Accumulated Depreciation (110,068,351) 31,652,085 (78,416,266) (78,416,266) -------------------------------------------------------------------------------------------- Net Real Estate 2,430,033,869 (102,961,200) 2,327,072,669 (118,887,475) 2,208,185,194 -------------------------------------------------------------------------------------------- Investment in and advances to Partnerships and JVs - 29,166,089 29,166,089 - 29,166,089 -------------------------------------------------------------------------------------------- 2,430,033,869 (73,795,111) 2,356,238,758 (118,887,475) 2,237,351,283 -------------------------------------------------------------------------------------------- Other Assets: Cash and Cash Equivalents 46,883,041 (3,905,956) 42,977,085 - 42,977,085 Rents and Other Receivables 35,665,968 (7,991,132) 27,674,836 - 27,674,836 Assets held for sale 37,686,662 - 37,686,662 118,887,475 156,574,137 Intangible Assets (2) 181,544,375 - 181,544,375 - 181,544,375 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 67,358,715 (11,942,821) 55,415,894 - 55,415,894 -------------------------------------------------------------------------------------------- TOTAL OTHER ASSETS 369,138,761 (23,839,909) 345,298,852 118,887,475 464,186,327 -------------------------------------------------------------------------------------------- TOTAL ASSETS 2,799,172,630 (97,635,020) 2,701,537,610 - 2,701,537,610 -------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 1,320,774,295 (109,581,659) 1,211,192,636 (61,138,707) 1,150,053,929 Mortgage Debt Premium (3) 75,488,243 75,488,243 (4,361,443) 71,126,800 Bank Loans Payable 170,000,000 - 170,000,000 - 170,000,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Assets held for sale 5,840,385 - 5,840,385 65,500,150 71,340,535 Other Liabilities (4) 90,784,568 11,946,639 102,731,207 - 102,731,207 -------------------------------------------------------------------------------------------- TOTAL LIABILITIES 1,662,887,491 (97,635,020) 1,565,252,471 - 1,565,252,471 -------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------- Minority Interest 112,651,526 - 112,651,526 - 112,651,526 -------------------------------------------------------------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par 35,544,280 - 35,544,280 - 35,544,280 Preferred Shares $0.01 Par 24,750 - 24,750 - 24,750 Capital Contributed in Excess of Par 877,444,615 - 877,444,615 - 877,444,615 Restricted Stock (3,195,777) - (3,195,777) - (3,195,777) Other Comprehensive Income (2,005,840) - (2,005,840) - (2,005,840) Retained Earnings (Distributions in Excess of Net Income) 115,821,585 - 115,821,585 - 115,821,585 -------------------------------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY 1,023,633,613 - 1,023,633,613 - 1,023,633,613 -------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,799,172,630 $(97,635,020) $2,701,537,610 $ - $2,701,537,610 --------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------- SEPTEMBER 30, 2003 -------------------------------------------------------------------------------------------- COMBINED ADJUSTMENTS TO SUBTOTAL ASSETS HELD TOTAL TOTAL (1) EQUITY METHOD FOR SALE -------------------------------------------------------------------------------------------- ASSETS Investments in Real Estate, at cost Retail Properties $1,289,890,542 $(146,787,604) $1,143,102,938 $ - $1,143,102,938 Multifamily Properties - - - - - Industrial Properties 2,504,211 - 2,504,211 - 2,504,211 Lend Held for Development Construction In Progress 17,673,853 (1,563,289) 16,110,564 - 16,110,564 -------------------------------------------------------------------------------------------- TOTAL INVESTMENTS IN REAL ESTATE 1,310,068,606 (148,350,893) 1,161,717,713 - 1,161,717,713 Accumulated Depreciation (97,376,388) 36,454,134 (60,922,254) (60,922,254) -------------------------------------------------------------------------------------------- Net Real Estate 1,212,692,218 (111,896,759) 1,100,795,459 - 1,100,795,459 -------------------------------------------------------------------------------------------- Investment in and advances to Partnerships and JVs 1,200,000 14,691,677 15,891,677 - 15,891,677 -------------------------------------------------------------------------------------------- 1,213,892,218 (97,205,082) 1,116,687,136 - 1,116,687,136 Other Assets: Cash and Cash Equivalents 43,512,963 (5,113,326) 38,399,637 - 38,399,637 Rents and Other Receivables 21,909,843 (8,570,389) 13,339,454 - 13,339,454 Assets held for sale - - - - - Intangible Assets (2) 55,957,597 - 55,957,597 - 55,957,597 Deferred Costs, Prepaid Taxes & Exp. & Other Assets 53,730,566 (12,102,886) 41,627,680 - 41,627,680 -------------------------------------------------------------------------------------------- TOTAL OTHER ASSETS 175,110,969 (25,786,601) 149,324,368 - 149,324,368 -------------------------------------------------------------------------------------------- TOTAL ASSETS 1,389,003,187 (122,991,683) 1,266,011,504 - 1,266,011,504 -------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage Notes Payable 717,818,358 (118,525,862) 599,292,496 - 599,292,496 Mortgage Debt Premium (3) 21,243,002 - 21,243,002 - 21,243,002 Bank Loans Payable - - - - - Acquisition Term Loan & Unsecured Line of Credit - - - - - Assets held for sale 951,750 (36,458) 915,292 - 915,292 Other Liabilities (4) 42,393,014 (4,429,363) 37,963,651 - 37,963,651 -------------------------------------------------------------------------------------------- TOTAL LIABILITIES 782,406,124 (122,991,683) 659,414,441 - 659,414,441 -------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------- Minority Interest 64,261,590 - 64,261,590 - 64,261,590 -------------------------------------------------------------------------------------------- Shareholders' Equity: Shares of Beneficial Interest at $1 Par 23,480,595 - 23,480,595 - 23,480,595 Preferred Shares $0.01 Par Capital Contributed in Excess of Par 407,738,529 - 407,738,529 - 407,738,529 Restricted Stock (3,901,106) - (3,901,106) - (3,901,106) Other Comprehensive Income (1,928,590) - (1,928,590) - (1,928,590) Retained Earnings (Distributions in Excess of Net Income) 116,946,045 - 116,946,045 - 116,946,045 -------------------------------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY 542,335,473 - 542,335,473 - 542,335,473 -------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,389,003,187 $(122,991,683) $1,266,011,504 $ - $1,266,011,504 --------------------------------------------------------------------------------------------
(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) Includes value of acquired in-place leases and above-market value of leases recorded in connection with the acquisition of properties since 2002. 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. PAGE 32 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) INCOME STATEMENT-RECONCILIATION TO GAAP (1) QUARTERLY COMPARISON (Wholly Owned vs. JV's)
Q3 04 (3 MONTHS ENDED 9/30/04) ------------------------------------------------------------------------------------------ ADJUSTMENTS TO COMBINED EQUITY ASSETS HELD TOTAL % TOTAL (2) METHOD SUBTOTAL FOR SALE TOTAL CHANGE ------------------------------------------------------------------------------------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $70,621,109 $(5,171,295) $65,449,814 $(4,388,080) $61,061,734 113.2% Straight-Lining of Base Rents 1,269,906 (853) 1,269,053 $(57,210) 1,211,843 76.9% Percentage Rents 1,873,163 (53,063) 1,820,100 $(173,169) 1,646,931 250.9% Expense Reimbursables 33,424,615 (1,335,661) 32,088,954 $(2,218,573) 29,870,381 120.4% Lease Termination 1,690,536 - 1,690,536 - 1,690,536 N/A Other Real Estate Revenues 2,272,817 (18,637) 2,254,180 (190,468) 2,063,712 249.0% ------------------------------------------------------------------------------------------- TOTAL REVENUES 111,152,146 (6,579,509) 104,572,637 (7,027,500) 97,545,137 121.8% ------------------------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 32,294,350 (1,360,094) 30,934,256 (3,650,643) 27,283,613 119.3% Real Estate Taxes 9,993,786 (710,170) 9,283,616 (758,593) 8,525,023 80.4% ------------------------------------------------------------------------------------------- TOTAL EXPENSES 42,288,136 (2,070,264) 40,217,872 (4,409,236) 35,808,636 108.6% ------------------------------------------------------------------------------------------- NET OPERATING INCOME 68,864,010 (4,509,245) 64,354,765 (2,618,264) 61,736,501 130.3% ------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSES) Management Company Revenue 1,831,296 - 1,831,296 1,831,296 24.1% Interest Income 179,562 - 179,562 179,562 -17.3% GENERAL & ADMINISTRATIVE: Corporate Payroll and Benefits (7,335,945) - (7,335,945) (7,335,945) 71.6% Other G&A Expenses (4,199,168) - (4,199,168) (4,199,168) 3.7% ------------------------------------------------------------------------------------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 59,339,755 (4,509,245) 54,830,510 (2,618,264) 52,212,246 158.8% ------------------------------------------------------------------------------------------- Interest Expense (1) (21,139,131) 2,010,883 (19,128,248) 834,742 (18,293,506) 115.6% Depreciation & Amortization (23,686,272) 1,002,577 (22,683,695) - (22,683,695) 146.8% ------------------------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (44,825,403) 3,013,460 (41,811,943) 834,742 (40,977,201) 131.8% ------------------------------------------------------------------------------------------- EQUITY IN INCOME OF PARTNERSHIPS AND JVS - 1,495,785 1,495,785 1,495,785 ------------------------------------------------------------------------------------------- Gains (losses) on sales of interests in Real Estate 1,529,183 - 1,529,183 - 1,529,183 N/A ------------------------------------------------------------------------------------------- Income before Minority Interest 16,043,535 - 16,043,535 (1,783,522) 14,260,013 35.2% ------------------------------------------------------------------------------------------- Minority Interest in Properties (53,268) - (53,268) 5,038 (48,230) ------------------------------------------------------------------------------------------- Minority Interest of O.P. Unitholders (1,525,300) - (1,525,300) - (1,525,300) 54.2% ------------------------------------------------------------------------------------------- Income from Operations 14,464,967 - 14,464,967 (1,778,484) 12,686,483 37.2% ------------------------------------------------------------------------------------------- DISCONTINUED OPERATIONS: Income from Discontinued Operations - - - 1,783,522 1,783,522 438.0% Equity in Income of partnerships and JVs - Minority interest in properties - (5,038) (5,038) Minority Interest of O.P. Unitholders (197,095) - (197,095) (197,095) N/A Gain (losses) on Disposition of Discontinued Operations - - - - N/A ------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS (197,095) - (197,095) 1,778,484 1,581,389 N/A ------------------------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - - - N/A -------------------------------------------------------------------------------------------- NET INCOME $14,267,872 $ - $14,267,872 $ - $14,267,872 -59.1% -------------------------------------------------------------------------------------------
Q3 03 (3 MONTHS ENDED 9/30/03) --------------------------------------------------------------------------- ADJUSTMENTS TO COMBINED EQUITY ASSETS HELD TOTAL (3) METHOD SUBTOTAL FOR SALE TOTAL --------------------------------------------------------------------------- REAL ESTATE OPERATING REVENUES Base Rents (Net of Vacancies) $36,054,898 $(6,479,632) $29,575,266 $(929,099) $28,646,167 Straight-Lining of Base Rents 765,238 (80,188) 685,050 - 685,050 Percentage Rents 544,610 (75,212) 469,398 469,398 Expense Reimbursables 15,695,778 (2,142,618) 13,553,160 - 13,553,160 Lease Termination 29,393 - 29,393 (264) 27,129 Other Real Estate Revenues 831,304 (178,531) 652,773 (61,527) 591,246 --------------------------------------------------------------------------- TOTAL REVENUES 53,921,221 (8,956,181) 44,965,040 (992,890) 43,972,150 --------------------------------------------------------------------------- REAL ESTATE OPERATING EXPENSES Operating and Maintenance 15,370,354 (2,480,268) 12,890,086 (449,158) 12,440,928 Real Estate Taxes 5,576,415 (807,631) 4,768,784 (42,536) 4,726,248 --------------------------------------------------------------------------- TOTAL EXPENSES 20,946,769 (3,287,899) 17,658,870 (491,694) 17,167,176 --------------------------------------------------------------------------- NET OPERATING INCOME 32,974,452 (5,668,282) 27,306,170 (501,196) 26,804,974 --------------------------------------------------------------------------- OTHER INCOME (EXPENSES) Management Company Revenue 1,475,135 - 1,475,135 - 1,475,135 Interest Income 217,023 - 217,023 - 217,023 GENERAL & ADMINISTRATIVE: Corporate Payroll (4,274,156) - (4,274,156) - (4,274,156) Other G&A Expenses (4,049,052) - (4,049,052) - (4,049,052) --------------------------------------------------------------------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 26,343,402 (5,668,282) 20,675,120 (501,196) 20,173,924 --------------------------------------------------------------------------- Interest Expense (1) (11,465,586) 2,812,706 (8,652,880) 169,696 (8,483,184) Depreciation & Amortization (10,226,446) 1,034,646 (9,191,800) - (9,191,800) --------------------------------------------------------------------------- TOTAL OTHER INCOME (EXPENSES) (21,692,032) 3,847,352 (17,844,680) 169,696 (17,674,984) --------------------------------------------------------------------------- EQUITY IN INCOME OF PARTNERSHIPS AND JVS 1,820,930 1,820,930 1,820,930 --------------------------------------------------------------------------- Gains (losses) on sales of interests in Real Estate 6,228,839 - 6,228,839 - 6,228,839 --------------------------------------------------------------------------- Income before Minority Interest 10,880,209 - 10,880,209 (331,500) 10,548,709 --------------------------------------------------------------------------- Minority Interest in Properties (310,751) (310,751) (310,751) --------------------------------------------------------------------------- Minority Interest of O.P. Unitholders (989,253) - (989,253) - (989,253) --------------------------------------------------------------------------- Income from Operations 9,580,205 - 9,580,205 (331,500) 9,248,705 --------------------------------------------------------------------------- DISCONTINUED OPERATIONS: Income from Discontinued Operations - - - 331,500 331,500 Equity in Income of partnerships and JVs - Minority interest in properties Minority Interest of O.P. Unitholders (2,382,461) - (2,382,461) - (2,382,461) Gain (losses) on Disposition of Discontinued Operations 27,725,759 - 27,725,759 - 27,725,759 --------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS 25,343,298 - 25,343,298 331,500 25,674,798 --------------------------------------------------------------------------- Extraordinary item (Loss on early extinguishment of debt) - - - - - --------------------------------------------------------------------------- NET INCOME $34,923,503 $ - $34,923,503 $ - $34,923,503 ---------------------------------------------------------------------------
(1) Capitalized interest expense for the line of credit and construction loans of $418,715 is not included in the quarter ended 9/30/04 and $324,187 is not included in the quarter ended 9/30/03. (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 (SEPTEMBER 30, 2004) QUARTERLY COMPARISON FINANCIAL STATEMENT
- ----------------------------------------------------------------------------------------------------------------------------------- Q3 04 (3 MONTHS ENDED 9/30/04) - ----------------------------------------------------------------------------------------------------------------------------------- COMBINED ADJUSTMENTS TO SUBTOTAL ASSETS HELD TOTAL TOTAL EQUITY METHOD FOR SALE - ----------------------------------------------------------------------------------------------------------------------------------- Real Estate Revenues: Same Store $48,084,263 $(6,481,109) $41,603,154 $ - $41,603,154 New 58,998,938 - 58,998,938 - 58,998,938 Redevelopment 3,970,546 - 3,970,546 - 3,970,546 Discontinued 98,400 (98,400) - (7,027,500) (7,027,500) - ----------------------------------------------------------------------------------------------------------------------------------- Total Real Estate Revenues 111,152,146 (6,579,509) 104,572,637 (7,027,500) 97,545,137 - ----------------------------------------------------------------------------------------------------------------------------------- Operating Expenses: Same Store 16,795,228 (2,050,783) 14,744,445 - 14,744,445 New 24,263,395 - 24,263,395 - 24,263,395 Redevelopment 1,210,032 - 1,210,032 - 1,210,032 Discontinued 19,481 (19,481) - (4,409,236) (4,409,236) - ----------------------------------------------------------------------------------------------------------------------------------- Total Operating Expenses 42,288,136 (2,070,264) 40,217,872 (4,409,236) 35,808,636 - ----------------------------------------------------------------------------------------------------------------------------------- NOI: Same Store 31,289,035 (4,430,326) 26,858,709 - 26,858,709 New 34,735,543 - 34,735,543 - 34,735,543 Redevelopment 2,760,514 - 2,760,514 - 2,760,514 Discontinued 78,919 (78,919) - (2,618,264) (2,618,264) - ----------------------------------------------------------------------------------------------------------------------------------- NOI 68,864,010 (4,509,245) 64,354,765 (2,618,264) 61,736,501 - ----------------------------------------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSES): Management Company Revenue 1,831,296 - 1,831,296 - 1,831,296 Interest Income 179,562 - 179,562 - 179,562 General & Administrative: Corporate Payroll and Benefits (7,335,945) - (7,335,945) - (7,335,945) Other G&A Expenses (4,199,168) - (4,199,168) - ( 4,199,168) - ----------------------------------------------------------------------------------------------------------------------------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 59,339,755 (4,509,245) 54,830,510 (2,618,264) 52,212,246 - ----------------------------------------------------------------------------------------------------------------------------------- Interest Expense (21,139,131) 2,010,883 (19,128,248) $834,742 (18,293,506) Depreciation and Amortization (23,686,272) 1,002,577 (22,683,695) - (22,683,695) EQUITY IN INCOME OF PARTNERSHIP AND JVS - 1,495,785 1,495,785 - 1,495,785 Gain (loss) on Sale of Interests in RE 1,529,183 - 1,529,183 - 1,529,183 DISCONTINUED OPERATIONS: - - - Income from Disposed Real Estate - - - 1,783,522 1,783,522 Equity in income of partnership and JVs - - - - - Minority Interest in properties - - - (5,038) (5,038) Minority Interest of O.P. Unitholders (197,095) - (197,095) - (197,095) Gain (loss) on Disposition of Discontinued Operations - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS (197,095) - (197,095) 1,778,484 1,581,389 - ----------------------------------------------------------------------------------------------------------------------------------- Minority Interest in Properties (53,268) - (53,268) 5,038 (48,230) Extraordinary item (Loss on early extinguishment of debt) - - - - - Minority Interest of OP Unit Holders (1,525,300) - (1,525,300) - (1,525,300) - ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME 14,267,872 - 14,267,872 - 14,267,872 - ----------------------------------------------------------------------------------------------------------------------------------- Gain on Sale of Real Estate (1,529,183) - (1,529,183) - (1,529,183) Depreciation and Amor. of Real Estate 23,564,172 - 23,564,172 - 23,564,172 Dividends on preferred shares (3,403,125) - (3,403,125) - (3,403,125) FFO Adjustments 1,722,395 - 1,722,395 - 1,722,395 - ----------------------------------------------------------------------------------------------------------------------------------- FFO 34,622,131 - 34,622,131 - 34,622,131 - ----------------------------------------------------------------------------------------------------------------------------------- Adj. Straight Lining of Base Rents (1,269,906) - (1,269,906) - (1,269,906) Recurring Capital Expenditures (2,812,227) - (2,812,227) - (2,812,227) Tenant allowances (1,349,309) - (1,349,309) - (1,349,309) Amortization of Debt Premium (4,829,622) - (4,829,622) - (4,829,622) Amortization of above- and below-market lease intangibles 184,590 - 184,590 - 184,590 - ----------------------------------------------------------------------------------------------------------------------------------- FAD $24,545,657 $ - $24,545,657 $ - $24,545,657 - ----------------------------------------------------------------------------------------------------------------------------------- Total Dividends $21,688,390 Share Price (at close) $38.66 Weighted Average Number of Shares 35,695,353 WA number of Shares and OP Units 40,131,231 - ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME PER SHARE (BASIC) $0.30 FFO/SHARE AND OP UNITS $0.86 FAD/SHARE AND OP UNITS $0.61 DIVIDEND/SHARE AND OP UNITS $0.54 - -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------- Q3 03 (3 MONTHS ENDED 9/30/03) - ----------------------------------------------------------------------------------------------------------------------------------- COMBINED ADJUSTMENTS TO SUBTOTAL ASSETS HELD TOTAL TOTAL EQUITY METHOD FOR SALE - ----------------------------------------------------------------------------------------------------------------------------------- Real Estate Revenues: Same Store $45,826,940 $(7,263,123) $38,563,817 $ - $38,563,817 New 3,278,891 (1,176,197) 2,102,694 - 2,102,694 Redevelopment 3,305,639 - 3,305,639 - 3,305,639 Discontinued 1,509,751 (516,861) 992,890 (992,890) - - ----------------------------------------------------------------------------------------------------------------------------------- Total Real Estate Revenues 53,921,221 (8,956,181) 44,965,040 (992,890) 43,972,150 - ----------------------------------------------------------------------------------------------------------------------------------- Operating Expenses: Same Store 17,588,364 (2,286,514) 15,301,850 - 15,301,850 New 1,389,060 (721,007) 668,053 - 668,053 Redevelopment 1,197,273 - 1,197,273 - 1,197,273 Discontinued 772,072 (280,378) 491,694 (491,694) - - ----------------------------------------------------------------------------------------------------------------------------------- Total Operating Expenses 20,946,769 (3,287,899) 17,658,870 (491,694) 17,167,176 - ----------------------------------------------------------------------------------------------------------------------------------- NOI: Same Store 28,238,576 (4,976,609) 23,261,967 - 23,261,967 New 1,889,831 (455,190) 1,434,641 - 1,434,641 Redevelopment 2,108,366 - 2,108,366 - 2,108,366 Discontinued 737,679 (236,483) 501,196 (501,196) - - ----------------------------------------------------------------------------------------------------------------------------------- NOI 32,974,452 (5,668,282) 27,306,170 (501,196) 26,804,974 - ----------------------------------------------------------------------------------------------------------------------------------- OTHER INCOME (EXPENSES): Management Company Revenue 1,475,135 - 1,475,135 - 1,475,135 Interest Income 217,023 - 217,023 - 217,023 General & Administrative: Corporate Payroll and Benefits (4,274,156) - (4,274,156) - (4,274,156) Other G&A Expenses (4,049,052) - (4,049,052) - (4,049,052) - ----------------------------------------------------------------------------------------------------------------------------------- EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION 26,343,402 (5,668,282) 20,675,120 (501,196) 20,173,924 - ----------------------------------------------------------------------------------------------------------------------------------- Interest Expense (11,465,586) 2,812,706 (8,652,880) 169,696 (8,483,184) Depreciation and Amortization (10,226,446) 1,034,646 (9,191,800) - (9,191,800) EQUITY IN INCOME OF PARTNERSHIP AND JVS 1,820,930 1,820,930 - 1,820,930 Gain (loss) on Sale of Interests in RE 6,228,839 - 6,228,839 - 6,228,839 DISCONTINUED OPERATIONS: - - - - Income from Disposed Real Estate - - - 331,500 331,500 Equity in income of partnership and JVs - - - - - Minority Interest in properties Minority Interest of O.P. Unitholders (2,382,461) - (2,382,461) - (2,382,461) Gain (loss) on Disposition of Discontinued Operations 27,725,759 - 27,725,759 - 27,725,759 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL DISCONTINUED OPERATIONS 25,343,298 - 25,343,298 331,500 25,674,798 - ----------------------------------------------------------------------------------------------------------------------------------- Minority Interest in Properties (310,751) - (310,751) - (310,751) Extraordinary item (Loss on early extinguishment of debt) - - - - - Minority Interest of OP Unit Holders (989,253) - (989,253) - (989,253) - ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME 34,923,503 - 34,923,503 - 34,923,503 - ----------------------------------------------------------------------------------------------------------------------------------- Gain on Sale of Real Estate (33,954,598) - (33,954,598) - (33,954,598) Depreciation and Amor. of Real Estate 10,226,446 - 10,226,446 - 10,226,446 Dividends on preferred shares - - - - - FFO Adjustments 3,306,714 - 3,306,714 - 3,306,714 - ----------------------------------------------------------------------------------------------------------------------------------- FFO 14,502,065 - 14,502,065 - 14,502,065 - ----------------------------------------------------------------------------------------------------------------------------------- Adj. Straight Lining of Base Rents (765,238) - (765,238) - (765,238) Recurring Capital Expenditures (231,073) - (231,073) - (231,073) Tenant allowances (591,471) - (591,471) - (591,471) Amortization of Debt Premium (1,742,283) - (1,742,283) - (1,742,283) Amortization of above- and below-market lease intangibles 237,319 - - - 237,319 - ----------------------------------------------------------------------------------------------------------------------------------- FAD $11,409,319 $ - $11,172,000 $ - $11,409,319 - ----------------------------------------------------------------------------------------------------------------------------------- Total Dividends $12,718,682 Share Price (at close) $33.45 Weighted Average Number of Shares 19,488,367 WA number of Shares and OP Units 21,537,479 - ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME PER SHARE (BASIC) $1.79 FFO/SHARE AND OP UNITS $0.67 FAD/SHARE AND OP UNITS $0.53 DIVIDEND/SHARE AND OP UNITS $0.51 - -----------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET Q304 - ----------------------------------------------------------------------------------------------------------------------------------- COMBINED ADJUSTMENTS TO ASSETS HELD TOTAL EQUITY METHOD SUBTOTAL FOR SALE TOTAL - ----------------------------------------------------------------------------------------------------------------------------------- Investment in Real Estate, at cost $2,549,481,754 $(133,122,396) $2,416,359,358 $ (8,102,171) $2,408,257,187 Accumulated Depreciation (163,944,306) 31,124,661 (132,819,645) - (132,819,645) Investment in and advances to Partnership and JVs - 28,700,295 28,700,295 - 28,700,295 Other Assets 307,677,276 (23,333,592) $ 284,343,684 8,102,171 292,445,855 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $2,693,214,724 $ (96,631,032) $2,596,583,692 $ - $2,596,583,692 - ----------------------------------------------------------------------------------------------------------------------------------- Mortgage Notes $1,366,090,242 $(108,055,084) $1,258,035,158 $(17,228,605) $1,240,806,553 Line of Credit 112,000,000 - 112,000,000 - 112,000,000 Acquisition Term Loan & Unsecured Line of Credit - - - - - Other Liabilities 81,738,638 11,424,052 93,162,690 17,228,605 110,391,295 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $1,559,828,880 $ (96,631,032) $1,463,197,848 $ - $1,463,197,848 - ----------------------------------------------------------------------------------------------------------------------------------- Minority Interest $ 132,774,526 $ - $ 132,774,526 $ - $ 132,774,526 Total Shareholders Equity 1,000,611,318 - 1,000,611,318 - 1,000,611,318 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDER EQUITY $2,693,214,724 $ (96,631,032) $2,596,583,692 $ - $2,596,583,692 - -----------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET Q303 - ----------------------------------------------------------------------------------------------------------------------------------- COMBINED ADJUSTMENTS TO SUBTOTAL ASSETS HELD TOTAL TOTAL EQUITY METHOD FOR SALE - ----------------------------------------------------------------------------------------------------------------------------------- Investment in Real Estate, at cost $1,310,068,606 $(148,350,893) $1,161,717,713 $ 0 $1,161,717,713 Accumulated Depreciation (97,376,388) 36,454,134 (60,922,254) - (60,922,254) Investment in and advances to Partnership and JVs 1,200,000 14,691,677 15,891,677 - 15,891,677 Other Assets 175,110,969 (25,786,601) $149,324,368 - 149,324,368 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $1,389,003,187 $(122,991,683) $1,266,011,504 - $1,266,011,504 - ----------------------------------------------------------------------------------------------------------------------------------- Mortgage Notes $ 739,061,360 $(118,525,862) $ 620,535,498 - $ 620,535,498 Line of Credit - - - - - Acquisition Term Loan & Unsecured Line of Credit - - - - - Other Liabilities 43,344,764 (4,465,821) 38,878,943 - 38,878,943 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 782,406,124 $(122,991,683) $ 659,414,441 - $ 659,414,441 - ----------------------------------------------------------------------------------------------------------------------------------- Minority Interest $ 64,261,590 $ - $ 64,261,590 - $ 64,261,590 Total Shareholders Equity 542,335,473 - 542,335,473 - 542,335,473 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDER EQUITY $1,389,003,187 $(122,991,683) $1,266,011,504 $ - $1,266,011,504 - -----------------------------------------------------------------------------------------------------------------------------------
PAGE 34 PENNSYLVANIA REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004) DEFINITIONS FUNDS 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 -----END PRIVACY-ENHANCED MESSAGE-----