Exhibit 99.1

 

Supplemental Financial and Operating Information

September 30, 2021

 

www.preit.com

NYSE: PEI

NYSE: PEIPRB, PEIPRC, PEIPRD

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

September 30, 2021

Table of Contents
Introduction
Company Information	1
Earnings Release	2
Changes in Funds from Operations for the Three and Nine Months Ended September 30, 2021	5
Market Capitalization and Capital Resources	6
Operating Results
Statements of Operations – Three and Nine Months Ended September 30, 2021 and 2020	7
Computation of Earnings Per Share	8
Reconciliation of Net Operating Income and EBITDAre (Non-GAAP Measures) – Three and Nine Months Ended September 30, 2021 and 2020	9
Reconciliation of Net Loss (GAAP Measure) to Net Operating Income from Consolidated Properties (Non-GAAP Measure) - Three Months Ended September 30, 2021 and 2020	10
Reconciliation of Equity in Loss of Partnerships (GAAP Measure) to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure) – Three months ended September 30, 2021 and 2020	11
Reconciliation of Net Loss (GAAP Measure) to Net Operating Income from Consolidated Properties (Non-GAAP Measure) - Nine Months Ended September 30, 2021 and 2020	12
Reconciliation of Equity in Loss of Partnerships (GAAP Measure) to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Nine Months Ended September 30, 2021 and 20120	13
Reconciliation of Net Loss (GAAP Measure) to Funds From Operations and Funds Available for Distribution (Non-GAAP Measures) – Three and Nine Months Ended September 30, 2021 and 2020	14
Condensed Consolidated Balance Sheets	15
Assets and Liabilities - Equity Method Investments, at Ownership Share (Non-GAAP Measure)	16
Operating Statistics
Leasing Activity Summary – Three and Nine Months Ended September 30, 2021	17
Summarized Sales and Rent Per Square Foot and Occupancy Percentages	19
Mall Occupancy Percentage and Sales Per Square Foot	20
Top Twenty Tenants	21
Lease Expirations	22
Property Information	23
Balance Sheet
Investment in Real Estate - Consolidated Properties	25
Investment in Real Estate - Equity Method Investments at Ownership Share	26
Capital Expenditures – Three and Nine Months Ended September 30, 2021	27
Debt Analysis	28

Debt Schedule	30
Selected Debt Ratios	31
Forward Looking Statements	32
Definitions	33

Pennsylvania Real Estate Investment Trust

Company Information

Background

PREIT (NYSE:PEI) is a publicly traded real estate investment trust (REIT) that owns and manages distinctive real estate in high barrier-to-entry markets at the forefront of enabling communities through the built environment. PREIT’s robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in densely-populated, high barrier-to-entry markets with tremendous opportunity to create vibrant multi-use destinations. PREIT is focused on enhancing the quality of its portfolio through redevelopment, anchor repositioning, diversifying its tenant mix and densifying properties by adding a mix of uses. The portfolio consists of 25 retail properties, 24 of which are operating properties and one is a development property. The 24 operating retail properties have a total of 19.7 million square feet and include 20 shopping malls and four other retail properties.

If you would like to learn more about PREIT or participate in our quarterly earnings conference call, please visit preit.com or contact:

Heather Crowell

EVP, Strategy and Communications

One Commerce Square

2005 Market Street, Suite 1000

Philadelphia, PA 19103

Telephone: (215) 875-0735

Fax: (215) 546-2504

Email: Heather.Crowell@preit.com

Press release announcements are available on the Company's website at www.preit.com.

 

CONTACT: AT THE COMPANY

Mario Ventresca

EVP & CFO

(215) 875-0703

Heather Crowell

EVP, Strategy and Communications

(215) 454-1241

heather.crowell@preit.com

PREIT Reports Third Quarter 2021 Results

Year-to-Date New Transactions Set Five Year Record

September Sales for Comparable Tenants Increase 17% over September 2019

Strong Total Core Mall Leased Space at 91.7%

Collections Continue to Improve to 92% During the Quarter

Philadelphia, November 4, 2021 - PREIT (NYSE: PEI) today reported results for the three and nine months ended September 30, 2021. A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is provided in the tables accompanying this release.

	Three Months Ended September 30,						Nine Months Ended September 30,
(per share amounts)	2021			2020			2021			2020
Net loss - basic and diluted	$	(0.56	)	$	(0.46	)	$	(1.60	)	$	(1.10	)
FFO	$	(0.07	)	$	0.12		$	(0.12	)	$	0.20
FFO, as adjusted	$	(0.08	)	$	0.03		$	(0.21	)	$	0.12

“As we head into what is forecast to be a record-setting holiday season, our portfolio is generating tremendous momentum with impressive same store NOI growth, robust tenant sales and a strong leasing pipeline as a result of our unrelenting focus to create ever-evolving properties that generate success for our tenants,” said Joseph F. Coradino, Chairman and CEO of PREIT. “As our industry continues along a steep recovery slope, we expect to continue to deliver solid results and create value for our stakeholders.”

• Same Store NOI, excluding lease termination revenue, increased 36.0% for the three months ended September 30, 2021 compared to the three months ended September 30, 2020.

• For the quarter, results were driven by an increase in real estate revenue of $7.8 million primarily due to favorable percentage rent and a decrease in recognized credit losses for challenged tenants as compared to the three months ended September 30, 2020, partially offset by reduced rents from bankruptcies.

Collections continued to be strong with cash collections of 119% of billings for the third quarter of 2021. We collected 92% of billed third quarter 2021 rents and momentum continued in October with 93% of billed rents collected.

Our accounts receivable balance is down to $36.1 million as of September 30, 2021 compared to $54.5 million as of December 31, 2020.

As a result of improved collections, net cash generated from operating activities totaled $38.2 million for the nine months ended September 30, 2021 compared to cash used in operating activities of $8.8 million in the nine months ended September 30, 2020.

Robust leasing activity is driving increased occupancy with Mall Total Occupancy increasing by 100 basis points, sequentially, to 88.8%. Mall Non-anchor Occupancy increased 230 basis points, sequentially, to 86.6%.

Total Core Mall leased space, at 91.7%, exceeds occupied space by 210 basis points, and total non-anchor leased space, at 90.2%, exceeds occupied space by 190 basis points when including executed new leases slated for future occupancy, demonstrating the rapid pace of leasing activity.

• For the rolling 12 month period ended September 30, 2021, core mall sales for comparable tenants grew by 6.1% on average compared to the rolling 12 month period ended September 30, 2019. Sales grew at over 80% of properties, with comparable tenants, meaning tenants that reported sales in both periods, reporting sales growth of 17% in September 2021 when compared to September of 2019.

• Average renewal spreads for the nine months ended September 30, 2021 declined by 1.1%. Sequentially, average renewal spreads for tenants less than 10,000 square feet improved from -13.5% for the quarter ended June 30, 2021 to -2.3% for the quarter ended September 30, 2021.

Leasing and Redevelopment

• 637,000 square feet of leases are signed for future openings, which is expected to contribute annual gross rent of $10.0 million.

• Leasing momentum continues to build with transactions executed for 1.2 million square feet of occupancy thus far in 2021.

• Tilt Studios replaced JC Penney in 104,000 square feet at Magnolia Mall in Florence, SC. The family-focused destination opened in October 2021.

• Aldi opened its first store in the portfolio in 21,000 square feet at Dartmouth Mall in Dartmouth, MA in September 2021.

• A lease has been executed with Turn 7 to occupy the former Lord & Taylor space at Moorestown Mall. Turn 7 will open this Fall selling ever-changing overstocked merchandise from online channels at a discount, in a fast-paced, fun atmosphere. The store is expected to open in November.

• A transaction has been executed with Cooper University Health Care for an outpatient location in the former Sears space at Moorestown Mall in Moorestown, NJ. The Company also executed a rezoning agreement to allow for the addition of up to 1,065 multifamily units and a hotel at Moorestown Mall.

• Construction is underway on a new self-storage facility in previously unused below grade space at Mall at Prince George’s in Hyattsville, MD with an anticipated opening in Q1 2022.

• A lease has been executed with Tilted 10 and Tilt Studio, an action-packed bi-level 104,000 square foot indoor family entertainment center to replace the former JC Penney at Willow Grove Park, adding family entertainment to this locally-loved destination shopping experience.

• Phoenix Theatres is under construction to bring a first-class movie experience to Woodland Mall in 47,000 square feet in Q1 2022.

Primary Factors Affecting Financial Results for the Three Months Ended September 30, 2021 and 2020

• Net loss attributable to PREIT common shareholders was $44.6 million (which takes into consideration the accrual of preferred dividends that accumulated during the quarter but have not been paid), or $0.56 per basic and diluted share for the three months ended September 30, 2021, compared to net loss attributable to PREIT common shareholders of $35.7 million, or $0.46 per basic and diluted share for the three months ended September 30, 2020.

• Same Store NOI, including lease terminations, increased by $10.8 million, or 30.4%. The increase is primarily due to tenant store closings and rent abatements and increased credit losses that occurred in the prior year, partially offset by a reduction in expense recoveries resulting from tenant restructuring transactions.

• Non-Same Store NOI increased by $0.4 million, primarily due to higher credit losses in the prior year.

• FFO for the three months ended September 30, 2021 was $(0.07) per diluted share and OP Unit compared to $0.12 per diluted share and OP Unit for the three months ended September 30, 2020. Adjustments to FFO in the third quarter of 2021 was primarily related to $(0.01) per share from gain on hedge ineffectiveness.

All NOI and FFO amounts referenced as primary factors affecting financial results above include our share of unconsolidated properties’ revenues and expenses. Additional information regarding changes in operating results for the three and nine months ended September 30, 2021 and 2020 is included on page 5.

Liquidity and Financing Activities

As of September 30, 2021, the Company had $75.2 million available under its First Lien Revolving Credit Facility. The Company’s corporate cash balances, when combined with available credit, provides total liquidity of $96.3 million.

Asset Dispositions

Multifamily Land Parcels: The Company has executed agreements of sale for land parcels for anticipated multi-family development in the amount of $99.1 million. The agreements are with multiple buyers across six properties for over 2,500 units as part of the Company’s previously announced multi-family land sale plan. Closing on the transactions is subject to customary due diligence provisions and securing entitlements.

Hotel Parcels: The Company has an executed agreement of sale to convey a land parcel for anticipated hotel development in the amount of $2.5 million for approximately 125 rooms. Closing on the transaction is subject to customary due diligence provisions and securing entitlements.

Other Parcels: In August 2021, the Company closed on the sale of the strip center adjacent to Valley View Mall for $3.5 million. The Company expects to close on the sale of a remaining parcel at the previously disposed Monroe Power Center for $1.0 million in November and an anchor box at Valley View Mall in early 2022 for $2.8 million.

2021 Outlook

The Company is not issuing detailed guidance at this time.

Conference Call Information

Management has scheduled a conference call for 11:00 a.m. Eastern Time on Thursday
November 4, 2021, to review the Company’s results and future outlook. To listen to the call, please dial 1-844-885-9139 (domestic toll free), or 1-647-689-4441 (international), and request to join the PREIT call, Conference ID 3651629, at least fifteen minutes before the scheduled start time as callers could experience delays. Investors can also access the call in a "listen only" mode via the internet at the Company’s website, preit.com. Please allow extra time prior to the call to visit the site and download the necessary software to listen to the Internet broadcast. Financial and statistical information expected to be discussed on the call will also be available on the Company’s website.

For interested individuals unable to join the conference call, the online archive of the webcast will also be available for one year following the call.

About PREIT

PREIT (NYSE:PEI) is a publicly traded real estate investment trust (REIT) that owns and manages distinctive real estate in high barrier-to-entry markets at the forefront of enabling communities through the built environment. PREIT’s robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located

primarily in densely-populated, high barrier-to-entry markets with tremendous opportunity to create vibrant multi-use destinations. Additional information is available at preit.com or on Twitter or LinkedIn.

Rounding

Certain summarized information in the tables included may not total due to rounding.

Pennsylvania Real Estate Investment Trust

Changes in Funds from Operations

For the Three and Nine Months Ended September 30, 2021 as compared to the Three and Nine Months Ended September 30, 2020

(all per share amounts on a diluted basis unless otherwise noted; rounded to the nearest half penny; amounts may not total due to rounding)

(in thousands, except per share amounts)	Three Months Ended September 30, 2021			Per Diluted Share and OP Unit			Nine Months Ended September 30, 2021			Per Diluted Share and OP Unit
Funds from Operations, as adjusted September 30, 2020	$	2,719		$	0.03		$	9,413		$	0.12
Changes - Q3 2020 to Q3 2021
Contribution from anchor replacements and new box tenants		697			0.01			2,009			0.03
Impact from bankruptcies		316			0.01			938			0.01
Other leasing activity, including base rent and net CAM and real estate tax recoveries		1,109			0.02			352			0.01
Lease termination revenue		(1,320	)		(0.02	)		(887	)		(0.01	)
Credit losses		7,503			0.10			14,508			0.18
Other		(1	)		—			(800	)		(0.01	)
Same Store NOI from unconsolidated properties		2,467			0.03			5,209			0.07
Same Store NOI		10,771			0.14			21,329			0.27
Non Same Store NOI		355			0.01			(721	)		(0.01	)
Dilutive effect of asset sales		—			—			—			—
General and administrative expenses		(4,927	)		(0.06	)		(9,029	)		(0.12	)
Capitalization of leasing costs		36			—			(89	)		—
Other		(649	)		(0.01	)		11,389			0.15
Interest expense, net		(14,801	)		(0.19	)		(48,497	)		(0.61	)
Increase in weighted average shares		—			—			—			(0.01	)
Funds from Operations, as adjusted September 30, 2021		(6,495	)		(0.08	)		(16,205	)		(0.21	)
Provision for employee separation expense		(39	)		—			(279	)		(0.01	)
Gain on hedge ineffectiveness		532			0.01			2,329			0.03
Gain on debt extinguishment, net		—			—			4,587			0.06
Insurance recoveries, net		—			—			670			0.01
Reorganization expenses		—			—			(267	)		(0.01	)
Funds from Operations September 30, 2021	$	(6,002	)	$	(0.07	)	$	(9,165	)	$	(0.12	)

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands)

	September 30, 2021			December 31, 2020
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding		80,200			79,537
OP Units Outstanding		1,031			1,976
Total Common Shares and OP Units Outstanding		81,231			81,513
Equity Market Capitalization—Common Shares and OP Units	$	157,587		$	81,513
Series B Preferred Shares, Nominal Value		86,250			86,250
Series C Preferred Shares, Nominal Value		172,500			172,500
Series D Preferred Shares, Nominal Value		125,000			125,000
Total Equity Market Capitalization	$	541,337		$	465,266
DEBT CAPITALIZATION
Secured Debt Balance (1)	$	2,246,378		$	2,236,872
TOTAL MARKET CAPITALIZATION	$	2,787,715		$	2,702,138
Equity Capitalization/Total Market Capitalization		19.4	%		17.2	%
Debt Capitalization/Total Market Capitalization		80.6	%		82.8	%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	50,865		$	55,086
Revolving Facility		130,000			130,000
Amount Outstanding		(54,830	)		(54,830	)
Available First Lien Revolving Facility (2)		75,170			75,170
Term Loans		1,106,032			1,072,620
Amount Borrowed		(1,106,032	)		(1,072,620	)
Available Term Loans		-			-
TOTAL	$	126,035		$	130,256

(1) Includes all consolidated mortgages, term loans, and revolving credit facility, as well as our share of mortgage debt from unconsolidated equity method investments, which includes $97.3 million and $100.5 million of secured debt from our share of the FDP Term Loan as of September 30, 2021 and December 31, 2020 and $54.9 million and $50.0 million from our share of the FDP Partnership Loan as of September 30, 2021 and December 31, 2020, respectively. As of December 10, 2020, all debt is now secured.

(2) The available First Lien Revolving Facility borrowings are subject to covenants that may restrict amounts that can be borrowed.

Pennsylvania Real Estate Investment Trust

Statements of Operations – Three and Nine Months Ended September 30, 2021 and 2020

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands of dollars)	2021			2020			2021			2020
REVENUE:
Real estate revenue:
Lease revenue	$	65,543		$	58,473		$	193,563		$	178,313
Expense reimbursements		4,650			4,040			12,436			11,321
Other real estate revenue		1,400			1,336			4,828			4,803
Total real estate revenue		71,593			63,849			210,827			194,437
Other income		143			340			430			764
Total revenue		71,736			64,189			211,257			195,201
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes		(26,408	)		(27,688	)		(79,899	)		(80,418	)
Utilities		(3,749	)		(3,530	)		(9,573	)		(8,971	)
Other property operating expenses		(1,972	)		(1,827	)		(6,580	)		(5,699	)
Total property operating expenses		(32,129	)		(33,045	)		(96,052	)		(95,088	)
Depreciation and amortization		(29,142	)		(34,420	)		(88,667	)		(95,597	)
General and administrative expenses		(14,453	)		(9,526	)		(39,819	)		(30,790	)
Provision for employee separation expenses		(39	)		(60	)		(279	)		(1,173	)
Insurance recoveries, net		-			-			670			586
Project costs and other expenses		(27	)		(124	)		(206	)		(287	)
Total operating expenses		(75,790	)		(77,175	)		(224,353	)		(222,349	)
Interest expense, net(1)		(32,426	)		(20,260	)		(95,135	)		(34,040	)
Gain on debt extinguishment, net		-			—			4,587			—
Gain on derecognition of property		—			7,006			—			7,006
Impairment of assets		(262	)		—			(1,564	)		—
Reorganization expenses		-			—			(267	)		—
Total expenses		(108,478	)		(90,429	)		(316,732	)		(269,643	)
Loss before equity in loss of partnerships, (loss) gain on sales of real estate by equity method investee, (loss) gain on sales of real estate, net, and gain (loss) on sales of interests in non operating real estate		(36,742	)		(26,240	)		(105,475	)		(74,442	)
Equity in loss of partnerships (2)		(1,429	)		(3,259	)		(2,429	)		(2,798	)
(Loss) gain on sales of real estate by equity method investee		(10	)		—			1,337			—
(Loss) gain on sales of real estate, net		(217	)		(94	)		(1,191	)		11,169
Gain (loss) on sales of interests in non operating real estate		—			16			—			(174	)
Net loss		(38,398	)		(29,577	)		(107,758	)		(66,245	)
Less: net loss attributable to noncontrolling interest		669			734			2,686			1,996
Net loss attributable to PREIT		(37,729	)		(28,843	)		(105,072	)		(64,249	)
Less: cumulative preferred share dividends		(6,843	)		(6,843	)		(20,531	)		(20,531	)
Net loss attributable to PREIT common shareholders	$	(44,572	)	$	(35,686	)	$	(125,603	)	$	(84,780	)

(1) Net of capitalized interest expense of $20 and $488 for the three months ended September 30, 2021 and 2020, respectively, and $168 and $1,844 for the nine months ended September 30, 2021 and 2020 respectively.

(2) Equity in loss of partnerships is net of capitalized interest expense of $92 and $467 for the three months ended September 30, 2021 and 2020, respectively, and $338 and $2,394 for the nine months ended September 30, 2021 and 2020, respectively.

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share – Three and Nine Months Ended September 30, 2021 and 2020

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except per share amounts)	2021			2020			2021			2020
Net loss	$	(38,398	)	$	(29,577	)	$	(107,758	)	$	(66,245	)
Noncontrolling interest		669			734			2,686			1,996
Cumulative preferred share dividends		(6,843	)		(6,843	)		(20,531	)		(20,531	)
Dividends on unvested restricted shares		—			—			—			(363	)
Net loss used to calculate loss per share—basic and diluted	$	(44,572	)	$	(35,686	)	$	(125,603	)	$	(85,143	)
Basic and diluted loss per share:	$	(0.56	)	$	(0.46	)	$	(1.60	)	$	(1.10	)
(in thousands of shares)
Weighted average shares outstanding—basic		79,184			77,401			78,330			77,149
Effect of common share equivalents(1)		—			—			—			—
Weighted average shares outstanding—diluted		79,184			77,401			78,330			77,149

(1)The Company had net losses used to calculate earnings per share for the three and nine months ended September 30, 2021 and 2020. Therefore, the effects of common share equivalents are excluded from the calculation of diluted loss per share for these periods because they would be antidilutive.

Pennsylvania Real Estate Investment Trust

Reconciliation of Net Operating Income and Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (Non-GAAP Measures) – Three and Nine Months Ended September 30, 2021 and 2020

(in thousands)

Net Operating Income ("NOI") Reconciliation for the Three Months Ended September 30, 2021(1)

	Same Store				Change						Non Same Store				Total
(in thousands of dollars)	2021		2020		$			%			2021		2020		2021		2020
NOI from consolidated properties	$	38,966	$	30,662	$	8,304			27.1	%	$	498	$	144	$	39,464	$	30,806
NOI attributable to equity method investments, at ownership share		7,226		4,759		2,467			51.8	%		7		6		7,233		4,766
Total NOI		46,192		35,421		10,771			30.4	%		505		150		46,697		35,572
Less: lease termination revenue		740		2,011		(1,271	)		(63.2	%)		138		—		878		2,011
Total NOI excluding lease termination revenue	$	45,452	$	33,410	$	12,042			36.0	%	$	367	$	150	$	45,819	$	33,561

(1) NOI is a non-GAAP measure. See definition of NOI on page 33.

Net Operating Income ("NOI") Reconciliation for the Nine Months Ended September 30, 2021(1)

	Same Store				Change					Non Same Store					Total
(in thousands of dollars)	2021		2020		$		%			2021			2020		2021		2020
NOI from consolidated properties	$	114,289	$	98,169	$	16,120		16.4	%	$	485		$	1,179	$	114,774	$	99,348
NOI attributable to equity method investments, at ownership share		23,482		18,273		5,209		28.5	%		(5	)		22		23,477		18,296
Total NOI		137,771		116,442		21,329		18.3	%		480			1,201		138,251		117,644
Less: lease termination revenue		3,911		2,236		1,675		74.9	%		138			—		4,049		2,236
Total NOI excluding lease termination revenue	$	133,860	$	114,206	$	19,654		17.2	%	$	342		$	1,201	$	134,202	$	115,408

(1) NOI is a non-GAAP measure. See definition of NOI on page 33.

Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate ("EBITDAre") Reconciliation(1)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Net loss	$	(38,398	)	$	(29,577	)	$	(107,758	)	$	(66,245	)
Depreciation and amortization:
Consolidated		29,142			34,420			88,667			95,597
Unconsolidated properties at ownership share		3,095			5,095			9,257			12,396
Interest expense:
Consolidated		32,426			20,260			95,135			54,300
Unconsolidated properties at ownership share		5,541			2,906			16,224			8,562
Gain on sales of real estate by equity method investee		10			—			(1,337	)		—
Loss (gain) on sales of real estate, net		217			94			1,191			(11,169	)
Gain on debt extinguishment, net		—			—			(4,587	)		—
Gain on derecognition of property		—			(7,006	)		—			(7,006	)
Impairment of assets		262			—			1564			—
EBITDAre	$	32,295		$	26,192		$	98,356		$	86,435

(1) EBITDAre is a non-GAAP measure. See definition on page 34.

Pennsylvania Real Estate Investment Trust

Reconciliation of Net Loss to Net Operating Income from Consolidated Properties (Non-GAAP Measure)

Three Months Ended September 30, 2021 and 2020

(dollars in thousands)

	Three Months Ended September 30,
	2021			2020
Net loss	$	(38,398	)	$	(29,577	)
Other income		(143	)		(338	)
Depreciation and amortization		29,142			34,420
General and administrative expenses		14,453			9,526
Provision for employee separation expenses		39			60
Project costs and other expenses		27			124
Interest expense, net		32,426			20,260
Equity in loss of partnerships		1,429			3,259
Loss on remeasurement of assets by equity method investee		-			-
Gain on derecognition of property		-			(7,006	)
Impairment of assets		262			-
Gain on sales of real estate by equity method investee		10			-
Loss on sales of real estate, net		217			94
Gain on sales of interest in non operating real estate		-			(16	)
NOI from consolidated properties(1)	$	39,464		$	30,806

(1) NOI is a non-GAAP measure. See definition of NOI on page 33.

	Same Store						Non Same Store						Total
	2021			2020			2021			2020			2021			2020
Real estate revenue
Base rent	$	46,364		$	45,304		$	1,635		$	1,954		$	47,998		$	47,258
CAM reimbursement income		8,282			8,647			203			327			8,485			8,974
Real estate tax income		6,935			7,900			6			99			6,941			7,999
Percentage rent		1,376			85			-			-			1,376			85
Lease termination revenue		691			2,011			138			-			829			2,011
		63,648			63,947			1,982			2,380			65,629			66,327
Less: credit recoveries (losses)		(18	)		(7,521	)		(68	)		(332	)		(86	)		(7,853	)
Lease revenue		63,630			56,426			1,914			2,048			65,543			58,474
Expense reimbursements		4,523			3,850			127			190			4,650			4,040
Other real estate revenue		1,353			1,269			46			67			1,400			1,336
Total real estate revenue		69,506			61,546			2,087			2,305			71,593			63,851
Property operating expenses
CAM and real estate taxes		(25,126	)		(25,866	)		(1,282	)		(1,822	)		(26,408	)		(27,688	)
Utilities		(3,611	)		(3,299	)		(138	)		(231	)		(3,749	)		(3,530	)
Other property operating expenses		(1,803	)		(1,718	)		(169	)		(107	)		(1,972	)		(1,825	)
Total property operating expenses		(30,540	)		(30,883	)		(1,589	)		(2,160	)		(32,129	)		(33,043	)
NOI from consolidated properties(1)	$	38,966		$	30,662		$	498		$	144		$	39,464		$	30,806
Less: Lease termination revenue		691			2,011			138			-			829			2,011
NOI from consolidated properties excluding lease termination revenue(1)	$	38,275		$	28,651		$	360		$	144		$	38,635		$	28,795
% change in Same Store NOI from consolidated properties excluding lease termination revenue				33.6%

(1) NOI is a non-GAAP measure. See definition of NOI on page 33.

Pennsylvania Real Estate Investment Trust

Reconciliation of Equity in Loss of Partnerships to Net Operating Income from Equity Method Investments,

at Ownership Share (Non-GAAP Measure)

Three Months Ended September 30, 2021 and 2020

(dollars in thousands)

	Three Months Ended September 30,
	2021			2020
Equity in loss of partnerships	$	(1,429	)	$	(3,259	)
Other income		-			(12	)
Depreciation and amortization		3,095			5,095
Interest expense and other expenses, net		5,568			2,942
NOI from equity method investments at ownership share(1)	$	7,234		$	4,766

(1) NOI is a non-GAAP measure. See definition of NOI on page 33.

	Same Store						Non Same Store						Total
	2021			2020			2021			2020			2021			2020
Real estate revenue
Base rent	$	7,755		$	6,518		$	-		$	-		$	7,755		$	6,518
CAM reimbursement income		1,901			1,983			-			-			1,901			1,983
Real estate tax income		973			1,119			-			-			973			1,119
Percentage rent		522			33			-			112			522			145
Lease termination revenue		49			-			-			-			49			-
		11,200			9,653			-			112			11,200			9,765
Less: credit recoveries (losses)		(39	)		(1,917	)		-			-			(39	)		(1,917	)
Lease revenue		11,161			7,736			-			112			11,161			7,848
Expense reimbursements		604			682			-			-			604			682
Other real estate revenue		752			637			117			8			869			645
Total real estate revenue		12,517			9,055			117			120			12,634			9,175
Property operating expenses																	-
CAM and real estate taxes		(4,108	)		(3,370	)		(101	)		(108	)		(4,208	)		(3,478	)
Utilities		(312	)		(355	)		-			-			(312	)		(355	)
Other property operating expenses		(871	)		(570	)		(9	)		(6	)		(881	)		(576	)
Total property operating expenses		(5,291	)		(4,295	)		(110	)		(114	)		(5,401	)		(4,409	)
NOI from equity method investments at ownership share(1)	$	7,226		$	4,759		$	7		$	6		$	7,233		$	4,766
Less: Lease termination revenue		49			-			-			-			49			-
NOI from equity method investments at ownership share excluding lease termination revenue(1)	$	7,177		$	4,759		$	7		$	6		$	7,184		$	4,766
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				50.8%

(1) NOI is a non-GAAP measure. See definition of NOI on page 33.

Reconciliation of Net Loss to Net Operating Income from Consolidated Properties (Non-GAAP Measure)

Nine Months Ended September 30, 2021 and 2020

(dollars in thousands)

	Nine Months Ended September 30,
	2021			2020
Net loss	$	(107,758	)	$	(66,245	)
Other income		(430	)		(765	)
Depreciation and amortization		88,667			95,597
General and administrative expenses		39,819			30,790
Insurance recoveries, net		(670	)		(586	)
Provision for employee separation expenses		279			1,173
Project costs and other expenses		205			287
Interest expense, net		95,135			54,300
Impairment of assets		1,564			—
Equity in loss of partnerships		2,429			2,798
Gain on debt extinguishment, net		(4,587	)		—
Gain on derecognition of property		—			(7,006	)
Gain on sales of real estate by equity method investee		(1,337	)		—
Loss (gain) on sales of real estate, net		1,191			(11,169	)
Reorganization expenses		267			—
Loss on sales of interest in non operating real estate		—			174
NOI from consolidated properties(1)	$	114,774		$	99,348

	Same Store						Non Same Store						Total
	2021			2020			2021			2020			2021			2020
Real estate revenue
Base rent	$	139,440		$	129,861		$	4,089		$	6,224		$	143,529		$	136,085
CAM reimbursement income		24,633			27,777			513			1,266			25,146			29,043
Real estate tax income		20,442			24,583			120			432			20,562			25,015
Percentage rent		1,581			79			-			5			1,581			84
Lease termination revenue		1,349			2,236			138			-			1,487			2,236
		187,445			184,536			4,860			7,927			192,305			192,463
Less: credit recoveries (losses)		1,091			(13,417	)		168			(732	)		1,259			(14,149	)
Lease revenue		188,536			171,118			5,028			7,195			193,564			178,313
Expense reimbursements		12,064			10,598			372			723			12,436			11,321
Other real estate revenue		4,512			4,527			316			276			4,828			4,803
Total real estate revenue		205,112			186,243			5,716			8,194			210,828			194,437
Property operating expenses																	-
CAM and real estate taxes		(75,652	)		(74,546	)		(4,247	)		(5,872	)		(79,899	)		(80,418	)
Utilities		(9,162	)		(8,305	)		(411	)		(666	)		(9,573	)		(8,971	)
Other property operating expenses		(6,009	)		(5,224	)		(573	)		(477	)		(6,582	)		(5,701	)
Total property operating expenses		(90,823	)		(88,075	)		(5,231	)		(7,015	)		(96,054	)		(95,090	)
NOI from consolidated properties(1)	$	114,289		$	98,169		$	485		$	1,179		$	114,774		$	99,348
Less: Lease termination revenue		1,349			2,236			138			-			1,487			2,236
NOI from consolidated properties excluding lease termination revenue(1)	$	112,940		$	95,933		$	347		$	1,179		$	113,287		$	97,112
% change in Same Store NOI from consolidated properties excluding lease termination revenue				17.7%

(1) NOI is a non-GAAP measure. See definition of NOI on page 33.

Reconciliation of Equity in Loss of Partnerships to Net Operating Income from Equity Method Investments,

at Ownership Share (Non-GAAP Measure)

Nine Months Ended September 30, 2021 and 2020

(dollars in thousands)

	Nine Months Ended September 30,
	2021			2020
Equity in loss of partnerships	$	(2,429	)	$	(2,798	)
Other income		-			(38	)
Depreciation and amortization		9,257			12,396
Impairment of assets		265			-
Interest expense and other expenses, net		16,384			8,733
NOI from equity method investments at ownership share(1)	$	23,477		$	18,293

	Same Store						Non Same Store						Total
	2021			2020			2021			2020			2021			2020
Real estate revenue
Base rent	$	23,502		$	21,174		$	-		$	-		$	23,502		$	21,174
CAM reimbursement income		6,075			6,001			-			-			6,075			6,001
Real estate tax income		3,010			3,274			-			-			3,010			3,274
Percentage rent		981			98			212			170			1,193			268
Lease termination revenue		2,562			-			-			-			2,562			-
		36,130			30,547			212			170			36,342			30,717
Less: credit losses		(253	)		(3,376	)		-			-			(253	)		(3,376	)
Lease revenue		35,877			27,171			212			170			36,089			27,341
Expense reimbursements		1,635			1,781			-			-			1,635			1,781
Other real estate revenue		1,524			1,895			133			180			1,657			2,075
Total real estate revenue		39,036			30,847			345			350			39,381			31,197
Property operating expenses																	-
CAM and real estate taxes		(12,276	)		(9,802	)		(317	)		(314	)		(12,593	)		(10,116	)
Utilities		(1,003	)		(892	)		-			-			(1,003	)		(892	)
Other property operating expenses		(2,275	)		(1,880	)		(33	)		(14	)		(2,308	)		(1,894	)
Total property operating expenses		(15,554	)		(12,574	)		(350	)		(328	)		(15,904	)		(12,902	)
NOI from equity method investments at ownership share(1)	$	23,482		$	18,273		$	(5	)	$	22		$	23,477		$	18,295
Less: Lease termination revenue		2,562			-			-			-			2,562			-
NOI from equity method investments at ownership share excluding lease termination revenue(1)	$	20,920		$	18,273		$	(5	)	$	22		$	20,915		$	18,295
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				14.5%

(1) NOI is a non-GAAP measure. See definition of NOI on page 33.

Pennsylvania Real Estate Investment Trust

Reconciliation of Net Loss to Funds From Operations and Funds Available for Distribution (Non-GAAP Measures)

Three and Nine Months Ended September 30, 2021 and 2020

(in thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
FUNDS FROM OPERATIONS (1)
Net loss	$	(38,398	)	$	(29,577	)	$	(107,758	)	$	(66,245	)
Depreciation and amortization on real estate:
Consolidated properties		28,812			34,053			87,653			94,538
PREIT's share of equity method investments		3,095			5,095			9,257			12,396
Gain on sales of real estate by equity method investee		10			—			(1,337	)		—
Loss (gain) on sales of real estate, net		217			94			1,191			(11,170	)
Impairment of Assets:
Consolidated properties		262			—			1,564			—
PREIT's share of equity method investments		—			—			265			—
Dividends on preferred shares(2)		—			—			—			(13,688	)
Funds from operations attributable to common shareholders and OP Unit holders(1)		(6,002	)		9,665			(9,165	)		15,831
Provision for employee separation expenses		39			60			279			1,173
Gain on hedge ineffectiveness		(532	)		—			(2,329	)		—
Gain on debt extinguishment, net		—			—			(4,587	)		—
Gain on derecognition of property		—			(7,006	)		—			(7,006	)
Insurance recoveries, net		—			—			(670	)		(586	)
Reorganization expenses		—			—			267			—
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders	$	(6,495	)	$	2,719		$	(16,205	)	$	9,412

FUNDS AVAILABLE FOR DISTRIBUTION(1)
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders(1)	$	(6,495	)	$	2,719		$	(16,205	)	$	9,412
Adjustments:
Straight line rent		(220	)		(308	)		(832	)		(1,918	)
Recurring capital expenditures		(1,353	)		(739	)		(3,278	)		(2,400	)
Tenant allowances		(2,644	)		(8,391	)		(7,324	)		(14,132	)
Amortization of non-cash deferred compensation		1,047			1,726			3,516			5,021
Capitalized leasing costs		(36	)		—			(61	)		(150	)
Amortization of above- and below-market lease intangibles		(8	)		(16	)		(38	)		(65	)
Funds available for distribution to common shareholders and OP Unit holders(1)	$	(9,709	)	$	(5,009	)	$	(24,222	)	$	(4,231	)
Funds from operations attributable to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	(0.07	)	$	0.12		$	(0.12	)	$	0.20
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit	$	(0.08	)	$	0.03		$	(0.21	)	$	0.12
Funds available for distribution to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	(0.12	)	$	(0.06	)	$	(0.31	)	$	(0.05	)

Weighted average number of shares outstanding	79,184	77,401	78,330		77,149
Weighted average effect of full conversion of OP Units	1,226	2,023	(1,723	)	2,023
Effect of common share equivalents	1,081	357	897		411
Total weighted average shares outstanding, including OP Units	81,490	79,781	77,504		79,583

(1) Non-GAAP measures. See definitions on page 33.

(2) Does not include the impact of $6.8 million and $20.5 million of accrued, undeclared and unpaid preferred share dividends for the three and nine months ended September 30, 2021, and $6.8 million for the three and nine months ended September 30, 2020. The Company cannot declare and pay cash dividends on common shares while there exists a preferred dividend arrearage.

Pennsylvania Real Estate Investment Trust

Condensed Consolidated Balance Sheets

(Unaudited)

	September 30, 2021			December 31, 2020
(in thousands, except per share amounts)
ASSETS:
INVESTMENTS IN REAL ESTATE, at cost:
Operating properties	$	3,175,442		$	3,168,536
Construction in progress		44,671			46,285
Land held for development		4,339			5,516
Total investments in real estate		3,224,452			3,220,337
Accumulated depreciation		(1,388,330	)		(1,308,427	)
Net investments in real estate		1,836,122			1,911,910
INVESTMENTS IN PARTNERSHIPS, at equity:		19,947			27,066
OTHER ASSETS:
Cash and cash equivalents		28,975			43,309
Tenant and other receivables, net		36,102			54,532
Intangible assets (net of accumulated amortization of $20,220 and $19,187 at September 30, 2021 and December 31, 2020, respectively)		10,359			11,392
Deferred costs and other assets, net		134,967			127,593
Assets held for sale		3,626			1,384
Total assets	$	2,070,098		$	2,177,186
LIABILITIES:
Mortgage loans payable, net	$	856,986		$	884,503
Term Loans, net		945,456			908,473
Revolving Facility		54,830			54,830
Tenants’ deposits and deferred rent		9,075			8,899
Distributions in excess of partnership investments		69,627			76,586
Fair value of derivative liabilities		13,060			23,292
Accrued expenses and other liabilities		91,062			93,663
Total liabilities		2,040,096			2,050,246
COMMITMENTS AND CONTINGENCIES
EQUITY:
Series B Preferred Shares, $.01 par value per share; 25,000 shares authorized; 3,450 shares issued and outstanding; liquidation preference of $94,201 and $89,430 at September 30, 2021 and December 31, 2020, respectively		35			35
Series C Preferred Shares, $.01 par value per share; 25,000 shares authorized; 6,900 shares issued and outstanding; liquidation preference of $188,025 and $178,710 at September 30, 2021 and December 31, 2020, respectively		69			69
Series D Preferred Shares, $.01 par value per share; 25,000 shares authorized; 5,000 shares issued and outstanding; liquidation preference of $135,743 and $129,297 at September 30, 2021 and December 31, 2020, respectively		50			50
Shares of beneficial interest, $1.00 par value per share; 200,000 shares authorized; 80,200 and 79,537 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively		80,200			79,537
Capital contributed in excess of par		1,775,959			1,771,777
Accumulated other comprehensive loss		(12,876	)		(20,620	)
Distributions in excess of net income		(1,804,710	)		(1,699,638	)
Total equity—Pennsylvania Real Estate Investment Trust		38,727			131,210
Noncontrolling interest		(8,725	)		(4,270	)
Total equity		30,002			126,940
Total liabilities and equity	$	2,070,098		$	2,177,186

Pennsylvania Real Estate Investment Trust

Assets and Liabilities - Equity Method Investments, at Ownership Share (Non-GAAP Measure)

(in thousands)

	September 30, 2021			December 31, 2020
ASSETS:
Investments in real estate, at cost:
Operating properties	$	402,291		$	452,012
Construction in progress		5,854			117,551
Total investments in real estate		408,145			569,563
Accumulated depreciation		(117,989	)		(116,923	)
Net investments in real estate		290,156			452,640
Cash and cash equivalents		21,890			10,952
Deferred costs and other assets, net		79,923			51,054
Total assets		391,969			514,646
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		225,939			224,800
FDP Term Loan, net		97,301			100,500
Partnership Loan		54,949			50,000
Other liabilities		63,460			57,949
Total liabilities		441,649			433,249
Net investment	$	(49,680	)	$	81,397
Reconciliation to comparable GAAP balance sheet item:
Investment in partnerships, at equity	$	19,947		$	167,167
Distributions in excess of partnership investments		(69,627	)		(85,770	)
Net investments and advances	$	(49,680	)	$	81,397

The non-GAAP financial information presented above includes financial information attributable to our share of unconsolidated properties. This proportionate financial information is non-GAAP financial information, but we believe that it is helpful information because it reflects the pro rata contribution from our unconsolidated properties that are owned through investments accounted for under GAAP using the equity method of accounting. Under such method, our investments in these entities are recorded in the balance sheet caption entitled “Investment in partnerships, at equity.” In the case of deficit investment balances, such amounts are recorded in “Distributions in excess of partnership investments.”

To derive the proportionate financial information reflected in the tables above we multiplied the percentage of our economic interest in each partnership on a property-by-property basis by each line item. Under the partnership agreements relating to our current unconsolidated partnerships with third parties, we own a 25% to 50% economic interest in such partnerships, and there are generally no provisions in such partnership agreements relating to special non-pro rata allocations of income or loss, and there are no preferred or priority returns of capital or other similar provisions. While this method approximates our indirect economic interest in our pro rata share of the assets and liabilities of our unconsolidated partnerships, we do not control these partnerships or have a direct legal claim to the assets, liabilities, revenues or expenses of the unconsolidated partnerships beyond our rights as an equity owner in the event of any liquidation of such entity. Our percentage ownership is not necessarily indicative of the legal and economic implications of our ownership interest.

Pennsylvania Real Estate Investment Trust

Leasing Activity Summary – Three Months Ended September 30, 2021

		Number		GLA		Term		Initial Rent per square foot ("psf")		Previous Rent psf		Initial Gross Rent Renewal Spread(1)						Average Rent Renewal Spread(2)			Annualized Tenant Improvements psf(3)
												$			%			%
Non Anchor
New Leases
Under 10k square feet ("sf")	Consolidated		31		58,440		4.6	$	47.79	N/A		N/A			N/A			N/A			$	7.19
	Unconsolidated(4)		2		1,499		3.3		34.02	N/A		N/A			N/A			N/A				-
Total Under 10k sf			33		59,939		4.6	$	47.45	N/A		N/A			N/A			N/A			$	7.06
Over 10k sf	Consolidated		3		38,292		3.8		6.61	N/A		N/A			N/A			N/A				0.07
Total New Leases			36		98,231		4.3	$	31.53	N/A		N/A			N/A			N/A			$	4.63
Renewal Leases
Under 10k sf	Consolidated		12		36,949		3.9	$	47.03	$	47.90	$	(0.87	)		(1.8	%)		(1.9	%)	$	-
	Unconsolidated(4)		2		5,762		2.7		23.14		26.39		(3.25	)		(12.3	%)		(7.1	%)	$	-
Total Under 10k sf			14		42,711		3.7	$	43.81	$	45.00	$	(1.19	)		(2.6	%)		(2.3	%)	$	-
Over 10k	Consolidated		-		-		-		-		-		-			-			-		$	-
Total Over 10k sf			-		-		-		-		-		-			-			-		$	-
Total Fixed Rent			14		42,711		3.7	$	43.81	$	45.00	$	(1.19	)		(2.6	%)		(2.3	%)	$	-
Percentage in Lieu	Consolidated		4		14,580		2.5	$	22.35	$	19.37	$	2.98			15.4	%	N/A			$	-
	Unconsolidated(4)		2		3,823		2.0	$	33.00	$	37.70		(4.70	)		(12.5	%)
Total Percentage in Lieu			6		18,403		2.4		24.56		23.18		1.38			6.0	%				$	-
Total Renewal Leases			20		61,114		3.3	$	38.01	$	38.43	$	(0.42	)		(1.1	%)				$	-
Total Non Anchor			56		159,345		3.9	$	34.01
Anchor
New Leases	Consolidated		2		224,594		5.7	$	4.50	N/A		N/A			N/A			N/A			$	1.45
Renewal Leases	Consolidated		1		40,332		2.0		23.12	$	25.00	$	(1.88	)		(7.5	%)	N/A			$	-
Total			3		264,926		4.5	$	7.33

(1) Initial gross rent renewal spread is computed by comparing the initial rent psf in the new lease to the final rent psf amount in the expiring lease. For purposes of this computation, the rent amount includes minimum rent, CAM charges, estimated real estate tax reimbursements and marketing charges, but excludes percentage rent. In certain cases, a lower rent amount may be payable for a period of time until specified conditions in the lease are satisfied.

(2) Average rent renewal spread is computed by comparing the average rent psf over the new lease term to the final rent psf amount in the expiring lease. For purposes of this computation, the rent amount includes minimum rent and fixed CAM charges, but excludes pro rata CAM charges, estimated real estate tax reimbursements, marketing charges and percentage rent.

(3) Tenant improvements and certain other leasing costs are presented as annualized amounts per square foot and are spread uniformly over the initial lease term.

(4) We own a 25% to 50% interest in each of our unconsolidated properties and do not control such properties. Our percentage ownership is not necessarily indicative of the legal and economic implications of our ownership interest. See “—Non-GAAP Supplemental Financial Measures” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 for further details on our ownership interests in our unconsolidated properties. Our unconsolidated properties include 6 leases and 11,084 square feet of GLA with respect to our unconsolidated partnerships.

Pennsylvania Real Estate Investment Trust

Leasing Activity Summary – Nine Months Ended September 30, 2021

		Number		GLA		Term		Initial Rent per square foot ("psf")		Previous Rent psf		Initial Gross Rent Renewal Spread(1)						Average Rent Renewal Spread(2)			Annualized Tenant Improvements psf(3)
												$			%			%
Non Anchor
New Leases
Under 10k square feet ("sf")	Consolidated		102		219,888		5.0	$	43.23	N/A		N/A			N/A			N/A			$	4.82
	Unconsolidated(4)		12		36,300		4.2		40.38	N/A		N/A			N/A			N/A				5.86
Total Under 10k sf			114		256,188		4.9	$	42.83	N/A		N/A			N/A			N/A			$	4.95
Over 10k sf	Consolidated		8		225,747		17.5		8.85	N/A		N/A			N/A			N/A				1.09
Total New Leases			122		481,935		10.8	$	26.91	N/A		N/A			N/A			N/A			$	2.02
Renewal Leases
Under 10k sf	Consolidated		108		188,523		4.1	$	66.46	$	70.80	$	(4.34	)		(6.1	%)		(4.0	%)
	Unconsolidated(4)		12		50,915		2.2		35.25		44.02		(8.77	)		(19.9	%)		(13.2	%)
Total Under 10k sf			120		239,438		3.7	$	59.82	$	65.11	$	(5.28	)		(8.1	%)		(5.3	%)	$	-
Over 10k	Consolidated		8		302,597		4.7		21.23		19.68		1.55			7.9	%		10.1	%	$	-
	Unconsolidated(4)		-		-		-		-		-		-			-			-			-
Total Over 10k sf			8		302,597		4.7		21.23		19.68		1.55			7.9	%		10.1	%	$	-
Total Fixed Rent			128		542,035		4.3	$	38.28	$	39.75	$	(1.47	)		(3.7	%)		(1.1	%)	$	-
Percentage in Lieu	Consolidated		57		257,133		1.6	$	23.34	$	25.61	$	(2.27	)		(8.9	%)				$	-
	Unconsolidated(4)		2		3,823		2.0	$	33.00	$	37.70		(4.70	)		(12.5	%)
Total Percentage in Lieu			59		260,956		1.6		23.48		25.79		(2.31	)		(8.9	%)				$	-
Total Renewal Leases			187		802,991		3.4	$	33.47	$	35.21	$	(1.74	)		(4.9	%)				$	-
Total Non Anchor			309		1,284,926		6.2	$	31.01
Anchor
New Leases			4		409,684		6.1	$	3.40	N/A		N/A			N/A			N/A			$	0.95
Renewal Leases	Consolidated		6		690,850		4.5		5.51	$	5.61	$	(0.10	)		(1.8	%)
Total			10		1,100,534		5.1	$	4.72

(1) Initial gross rent renewal spread is computed by comparing the initial rent psf in the new lease to the final rent psf amount in the expiring lease. For purposes of this computation, the rent amount includes minimum rent, CAM charges, estimated real estate tax reimbursements and marketing charges, but excludes percentage rent. In certain cases, a lower rent amount may be payable for a period of time until specified conditions in the lease are satisfied.

(2) Average rent renewal spread is computed by comparing the average rent psf over the new lease term to the final rent psf amount in the expiring lease. For purposes of this computation, the rent amount includes minimum rent and fixed CAM charges, but excludes pro rata CAM charges, estimated real estate tax reimbursements, marketing charges and percentage rent.

(3) Tenant improvements and certain other leasing costs are presented as annualized amounts per square foot and are spread uniformly over the initial lease term.

(4) We own a 25% to 50% interest in each of our unconsolidated properties and do not control such properties. Our percentage ownership is not necessarily indicative of the legal and economic implications of our ownership interest. See “—Non-GAAP Supplemental Financial Measures” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 for further details on our ownership interests in our unconsolidated properties. Our unconsolidated properties include 26 leases and 91,038 square feet of GLA with respect to our unconsolidated partnerships.

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages

	September 30, 2021(1)																			September 30, 2020
								Actual Occupancy						Leased Occupancy													Actual Occupancy
	% Rolling 12 Mo. NOI			Average Comp Sales (1)	Average Gross Rent(2)(3)		Occupancy Cost	Total			Non- Anchor			Total			Non- Anchor			% Rolling 12 Mo. NOI			Average Comp Sales (1)	Average Gross Rent(2)(3)		Occupancy Cost(4)	Total			Non- Anchor
Malls (5)		93.6	%	n/a	$	55.32	n/a		89.6	%		88.3	%		91.7	%		90.2	%		91.8	%	n/a	$	57.87	n/a		92.3	%		87.9	%
Non-Core Malls		0.6	%	n/a	$	29.93	n/a		77.1	%		49.8	%		77.2	%		50.1	%		0.6	%	n/a	$	37.37	n/a		70.8	%		52.1	%
Malls Total		94.2	%	n/a	$	54.73	n/a		88.8	%		86.6	%		90.8	%		88.5	%		92.5	%	n/a	$	57.35	n/a		91.1	%		86.4	%
Other Retail Properties		6.0	%	n/a	$	24.48	n/a		88.3	%		87.3	%		90.6	%		89.8	%		7.0	%	n/a	$	25.84	n/a		92.4	%		91.8	%
Total Retail Properties		100.2	%	n/a	$	46.68	n/a		88.8	%		86.7	%		90.8	%		88.7	%		99.5	%	n/a	$	48.75	n/a		91.2	%		87.1	%
Sold Properties		0.0	%	n/a	n/a		n/a														0.1	%	n/a	$	13.00	n/a		100.0	%		100.0	%
Other Properties		-0.2	%	n/a	n/a		n/a														0.4	%	n/a			n/a
Total Portfolio		100.0	%	n/a	$	46.68	n/a		88.8	%		86.7	%		90.8	%		88.7	%		100.0	%	n/a	$	48.31	n/a		91.3	%		87.2	%

(1) Average comp sales are not reported for 2021 or 2020 due to COVID-19 related mall closures and operational limitations impacting 2020 activity. As a result of these closures and related limitations, comparisons are not meaningful. Historically, average comp sales have been based on reported sales by all comparable non-anchor tenants that lease individual spaces of less than 10,000 square feet and have occupied the space for at least 24 months.

(2) Average gross rent for malls includes all non-anchor space owned by the Company and leased to tenants that occupy individual spaces of less than 10,000 square feet. Average gross rent for other retail properties includes all non-anchor space owned by the Company regardless of size.

(3) Average gross rent for mall tenants greater than 10,000 sf was $22.06 per square foot as of September 30, 2021 and $20.18 per square foot as of September 30, 2020.

(4) Occupancy Cost is not included in either 2021 or 2020 due to Average Comp Sales not being presented.

(5) Beginning in the third quarter of 2021, Fashion District Philadelphia is classified as a Core Mall, compared to prior quarters when it was classified as a Non-Core Mall.

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot

	September 30, 2021										September 30, 2020							Change
	% of Mall NOI			Avg Comp Sales (1)	Total Occupancy %			Non- Anchor Occupancy %			Avg Comp Sales (1)	Total Occupancy %			Non-Anchor Occupancy %			Avg Comp Sales (1)	Total Occupancy %			Non- Anchor Occupancy %
Top 6 Malls
Willow Grove Park		5.4	%	n/a		97.7	%		96.1	%	n/a		92.6	%		87.8	%	n/a		5.1	%		8.3	%
Cherry Hill Mall		10.1	%	n/a		94.4	%		93.2	%	n/a		91.4	%		89.7	%	n/a		3.0	%		3.5	%
Woodland Mall		6.8	%	n/a		84.8	%		82.1	%	n/a		96.8	%		96.2	%	n/a		(12.0	%)		(14.1	%)
Lehigh Valley Mall		6.5	%	n/a		89.1	%		82.4	%	n/a		88.9	%		82.0	%	n/a		0.2	%		0.4	%
Mall at Prince Georges		8.4	%	n/a		83.3	%		98.7	%	n/a		98.3	%		96.6	%	n/a		(15.0	%)		2.1	%
Springfield Town Center		10.6	%	n/a		90.7	%		87.5	%	n/a		90.3	%		87.0	%	n/a		0.4	%		0.5	%
		47.8	%	n/a		89.8	%		89.4	%	n/a		92.7	%		89.3	%	n/a		(2.9	%)		0.1	%
Malls 7-12
Dartmouth Mall		4.5	%	n/a		96.2	%		94.3	%	n/a		96.9	%		95.6	%	n/a		(0.7	%)		(1.3	%)
Jacksonville Mall		4.2	%	n/a		99.9	%		99.8	%	n/a		99.2	%		98.4	%	n/a		0.7	%		1.4	%
Magnolia Mall		3.0	%	n/a		80.1	%		95.9	%	n/a		95.2	%		91.7	%	n/a		(15.1	%)		4.2	%
Capital City Mall		5.7	%	n/a		97.3	%		96.0	%	n/a		97.2	%		95.8	%	n/a		0.1	%		0.2	%
Patrick Henry Mall		5.2	%	n/a		95.3	%		93.1	%	n/a		95.8	%		93.8	%	n/a		(0.5	%)		(0.7	%)
Viewmont Mall		4.3	%	n/a		96.8	%		93.3	%	n/a		95.8	%		91.4	%	n/a		1.0	%		1.9	%
		26.9	%	n/a		93.8	%		95.3	%	n/a		96.6	%		94.4	%	n/a		(2.8	%)		0.9	%
Malls 13-18
Valley Mall		5.2	%	n/a		97.5	%		94.4	%	n/a		98.0	%		95.4	%	n/a		(0.5	%)		(1.0	%)
Moorestown Mall		3.7	%	n/a		79.3	%		92.0	%	n/a		94.0	%		86.6	%	n/a		(14.7	%)		5.4	%
Springfield Mall		1.2	%	n/a		88.4	%		88.4	%	n/a		81.9	%		81.9	%	n/a		6.5	%		6.5	%
Cumberland Mall		2.6	%	n/a		90.5	%		84.4	%	n/a		90.3	%		84.1	%	n/a		0.2	%		0.3	%
Francis Scott Key Mall		3.6	%	n/a		92.2	%		87.7	%	n/a		93.9	%		90.5	%	n/a		(1.7	%)		(2.8	%)
Plymouth Meeting Mall		4.4	%	n/a		83.2	%		75.3	%	n/a		83.5	%		75.6	%	n/a		(0.3	%)		(0.3	%)
Fashion District Philadelphia (2)		3.9	%	n/a		78.4	%		72.6	%	n/a		79.7	%		74.0	%	n/a		(1.3	%)		(1.4	%)
		24.6	%	n/a		86.6	%		83.0	%	n/a		89.4	%		82.6	%	n/a		(2.8	%)		0.4	%
All Core Malls		99.4	%	n/a		89.6	%		88.3	%	n/a		92.3	%		87.9	%	n/a		(2.7	%)		0.4	%
Non-Core Malls
Exton Square Mall		0.6	%	n/a		77.1	%		49.8	%	n/a		70.8	%		52.1	%	n/a		6.3	%		(2.3	%)
All Non-Core Malls		0.6	%	n/a		77.1	%		49.8	%	n/a		70.8	%		52.1	%	n/a		6.3	%		(2.3	%)
All Malls		100.0	%	n/a		88.8	%		86.6	%	n/a		91.1	%		86.4	%	n/a		(2.3	%)		0.2	%

(1) Average comp sales are not reported for 2021 or 2020 due to COVID-19 related mall closures and operational limitations impacting 2020 activity. As a result of the closures and related limitations, comparisons are not meaningful. Historically, average comp sales have been based on reported sales by all comparable non-anchor tenants that lease individual spaces of less than 10,000 square feet and have occupied the space for at least 24 months.

(2) Beginning in the third quarter of 2021, Fashion District Philadelphia is classified as a Core Mall, compared to prior quarters when it was classified as a Non-Core Mall.

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants

September 30, 2021

Tenant	Brands	Locations at Consolidated Properties		Locations at Unconsolidated Properties		Total Number of Locations		Percentage of Annualized Gross Rent (1)
Foot Locker, Inc.	Champs, Foot Locker, Footaction, House of Hoops by Foot Locker, Kids Foot Locker,Nike Yardline, Footaction Flight 23	39		7		46			4.9	%
Signet Jewelers Limited	Kay Jewelers, Piercing Pagoda, Totally Pagoda, Zales Jewelers	49		10		59			3.3	%
Dick's Sporting Goods, Inc.	Dick's Sporting Goods, Field & Stream	10		1		11			2.9	%
Victoria's Secret & Co.	Victoria's Secret, Pink	14		3		17			2.9	%
American Eagle Outfitters, Inc.	Aerie, American Eagle Outfitters	15		6		21			2.6	%
Express, Inc	Express, Express Factory Outlet, Express Men	10		4		14			1.9	%
Dave & Buster's, Inc.	Dave & Buster's	3			1	4			1.9	%
Gap, Inc.	Banana Republic, Gap/Gap Kids/Gap Outlet, Old Navy, Old Navy Outlet, Banana Republic Factory Store	10		8		18			1.9	%
Sycamore Partners	Hot Topic, Talbots, Torrid, AnnTaylor, Loft, Lane Bryant, Belk	33		9		42			1.8	%
Macy's	Bloomingdale's, Macy's	12			2	14			1.8	%
Cineworld Group	Regal Cinemas	4		0		4			1.7	%
Genesco Inc.	Johnston & Murphy, Journeys, Journeys Kidz, Underground by Journeys	23			5	28			1.7	%
Bath & Body Works, Inc.	Bath & Body Works	18		3		21			1.4	%
Darden Concepts, Inc.	Bahama Breeze, Capital Grille, Olive Garden, Seasons 52, Yard House	8		0		8			1.3	%
Luxottica Group S.p.A.	Lenscrafters, Pearle Vision, Sunglass Hut, Sunglass Hut Outlet	21			7	28			1.3	%
H&M Hennes & Muritz L.P.	H & M	12			1	13			1.2	%
AMC Entertainment Holdings, Inc.	AMC	3			1	4			1.1	%
Shoe Show, Inc.	Shoe Department, Shoe Dept. Encore, Shoe Show	16		2		18			1.1	%
The TJX Companies, Inc.	HomeGoods, HomeSense, Marshalls, Sierra Trading Post, TJ Maxx	7		1		8			1.1	%
Copper Retail JV LLC	JC Penney, Penneys Firestone	10			1	11			1.0	%
Total Top 20 Tenants		317		72		389			38.6	%
Total Leases			1,322	346			1,668		100.0	%

(1)Includes our share of tenant gross rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments as of September 30, 2021.

Pennsylvania Real Estate Investment Trust

Lease Expirations as of September 30, 2021

(dollars in thousands except per square foot (“psf”) amounts)

Non-Anchors
			Gross Leasable Area ("GLA")					Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA (1)		Percent of Total			Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year (2)		Percent of PREIT’s Total			Average Expiring Gross Rent psf
2021 and Prior		143		268,631		3.3	%		18,148		16,057		5.8	%		67.56
2022		266		936,707		11.5	%		36,043		30,782		11.1	%		38.48
2023		248		1,325,436		16.3	%		44,750		38,997		14.0	%		33.76
2024		212		815,083		10.1	%		38,557		34,439		12.5	%		47.30
2025		175		946,090		11.6	%		41,940		33,378		12.0	%		44.33
2026		141		818,164		10.1	%		35,164		28,086		10.1	%		42.98
2027		98		719,391		8.9	%		26,331		24,375		8.8	%		36.60
2028		80		551,933		6.8	%		21,284		19,847		7.2	%		38.56
2029		67		481,160		5.9	%		19,133		15,608		5.6	%		39.76
2030		65		496,317		6.1	%		20,578		17,280		6.2	%		41.46
Thereafter		56		766,641		9.4	%		25,198		18,711		6.7	%		32.87
Total/Average		1,551		8,125,553		100.0	%	$	327,126	$	277,560		100.0	%	$	40.26

Anchors
			Gross Leasable Area ("GLA")					Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA (1)		Percent of Total			Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year (2)		Percent of PREIT’s Total			Average Expiring Gross Rent psf
2021 and prior		1		59,620		1.3	%		1,090		545		2.1	%		18.28
2022		2		376,694		8.2	%		710		355		1.4	%		1.88
2023		4		429,575		9.4	%		2,051		2,051		7.9	%		4.78
2024		4		485,531		10.6	%		3,264		3,264		12.7	%		6.72
2025		9		1,181,974		25.8	%		3,211		3,211		12.4	%		2.72
2026		5		411,018		9.0	%		2,820		2,101		8.1	%		6.86
2027		2		275,250		6.0	%		1,743		1,743		6.7	%		6.33
2028		8		879,599		19.2	%		5,633		5,633		21.8	%		6.40
2029		1		65,155		1.4	%		2,210		2,210		8.5	%		33.92
2030		2		85,723		1.9	%		1,511		1,511		5.8	%		17.63
Thereafter		5		327,632		7.2	%		3,255		3,255		12.6	%		9.93
Total/Average		43		4,577,771		100.0	%	$	27,498	$	25,879		100.0	%	$	6.01

(1) Does not include tenants occupying space under license agreements with initial terms of less than one year.

(2) Includes our share of tenant rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments.

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2021

		Landlord Owned Anchors/ Large Format Non Anchor				Anchor Stores Not Owned			Non-anchor occupied GLA
Properties	Location	Tenant	Expiration Year	GLA		Tenant	GLA		Large Format		Small Shop		Vacant		Total GLA
Core Malls
Capital City Mall	Camp Hill, PA	JCPenney	2025		102,825	Macy's		120,000		104,806		171,304		13,622		624,536
		Dick's Sporting Goods	2028		61,677
		Sportsman's Warehouse	2031							50,302
Cherry Hill Mall	Cherry Hill, NJ	Nordstrom	2025		138,000	JCPenney		174,285		254,879		393,215		46,931		1,311,910
						Macy's		304,600
Cumberland Mall	Vineland, NJ	The Home Depot	2024		132,013	BJ's Wholesale Club		117,889		168,249		137,561		64,736		951,217
		Dick's Sporting Goods	2028		50,000	Boscov's		155,341
		Regal Cinemas	2026							44,445
		Power Warehouse	2023		80,983
Dartmouth Mall	Dartmouth, MA	JCPenney	2025		100,020	Macy's		140,000		119,050		142,016		18,541		632,344
		Burlington	2030		43,840
		AMC Theaters	2026							44,988
		Aldi	2031							23,889
Fashion District Philadelphia	Philadelphia, PA	Burlington	2032		85,162					169,136		107,833		183,688		851,537
		AMC	2034							36,535
		Round 1	2029							58,080
		City Winery	2037							29,762
		H&M	2030							38,694
		Shopper's World	2026		95,159
		Primark	2032							47,488
Francis Scott Key Mall	Frederick, MD	JCPenney	2025		101,293	Macy's		139,333		124,272		170,078		48,222		754,231
		Sears	2023		120,883
		Dick's Sporting Goods	2025							50,150
Jacksonville Mall	Jacksonville, NC	Belk	2026		72,510					123,079		127,368		582		493,144
		JCPenney	2025		51,812
		Sears	2026		117,793
Lehigh Valley Mall	Allentown, PA	Boscov's	2022		164,694	JCPenney		207,292		185,631		315,778		107,204		1,192,599
		Macy's	2022		212,000
Magnolia Mall	Florence, SC (2)	Belk	2028		115,793					96,175		139,135		117,948		591,794
		Best Buy	2023		32,054
		Dick's Sporting Goods	2023							45,000

		Burlington	2028				45,689
Moorestown Mall	Moorestown, NJ (4)	Boscov's	2028	202,765	Cooper Hospital (5)	182,153	110,814	193,642	155,357	931,060
		Regal Cinemas	2030				57,843
		HomeSense	2028	28,486
Patrick Henry Mall	Newport News, VA	Dick's Sporting Goods	2027	50,250	Dillard's	144,157	60,095	217,716	20,491	717,921
		JCPenney	2025	85,212	Macy's	140,000
Plymouth Meeting Mall	Plymouth Meeting, PA	Boscov's	2028	188,429			159,504	170,052	154,012	917,844
		Whole Foods	2029	65,155
		Burlington	2030	41,883
		Dick's Sporting Goods	2031				57,588
		AMC Theaters	2027				48,000
		LEGOLAND Discovery Center	2032				33,221

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2021

		Landlord Owned Anchors/ Large Format Non Anchor				Anchor Stores Not Owned			Non-anchor occupied GLA
Properties	Location	Tenant	Expiration Year	GLA		Tenant	GLA		Large Format		Small Shop		Vacant		Total GLA
Springfield Mall	Springfield, PA					Macy's		192,000		20,577		176,447		25,735		610,658
						Target		195,899
Springfield Town Center	Springfield, VA	Macy's	2025		252,245	JCPenney		209,144		178,772		295,438		91,523		1,374,187
						Target		180,841
		Dick's Sporting Goods	2025							53,891
		Nordstrom Rack	2025							33,107
		Regal Cinemas	2031							49,788
		Saks OFF 5th	2022							29,438
The Mall at Prince Georges	Hyattsville, MD (3)	Macy's	2023		195,655					177,988		265,057		154,652		928,538
		Target	2024		135,186
Valley Mall	Hagerstown, MD	JCPenney	2025		157,455					95,023		198,444		20,403		827,735
		Belk	2028		123,094
		Regal Cinemas	2033							53,059
		Dick's Sporting Goods	2031		62,416
		Onelife Fitness	2033		70,000
		Tilt Studio	2028		47,841
Viewmont Mall	Scranton, PA	JCPenney	2025		193,112	Macy's		139,801		65,843		160,053		17,840		689,226
		Dick's Sporting Goods/Field & Stream	2028		90,000
		HomeGoods	2027							22,577
Willow Grove Park	Willow Grove, PA	Macy's	2027		225,000	Bloomingdale's		237,537		78,219		265,255		14,079		1,036,006
		Nordstrom Rack	2024		40,332	Sears(1)		175,584
Woodland Mall	Grand Rapids, MI	Von Maur	2119		86,165	JCPenney		254,905		115,714		280,979		86,594		981,673
						Macy's		157,316
Total Core Malls					4,219,192			3,568,077		3,361,360		3,927,371		1,342,160		16,418,160
Other Malls and Retail Properties
Exton Square Mall	Exton, PA	Boscov's	2024		178,000	Macy's		181,200		235,582		151,899		185,093		990,145
		Round 1	2026		58,371
Gloucester Premium Outlets	Blackwood, NJ									49,479		232,763		94,729		376,971
Metroplex Shopping Center	Plymouth Meeting, PA	Giant Food Store	2026		67,185	Lowe's		163,215		269,329		43,387		72,385		777,695
						Target		137,514
		Saks OFF 5th	2026							24,680
The Court at Oxford Valley	Fairless Hills, PA	Best Buy	2026		59,620	BJ's Wholesale Club		116,872		293,144		37,570		16,571		703,909
						The Home Depot		130,751
		Dick's Sporting Goods	2026							49,381
Red Rose Commons	Lancaster, PA					The Home Depot		134,558		248,086		15,207		-		462,883
						Weis Market		65,032
Total Other Malls and Retail Properties					363,176			929,142		1,169,681		480,826		368,778		3,311,603

Total Portfolio 4,582,368 4,497,219 4,531,041 4,408,197 1,710,938 19,729,763

(1) Approximately 69,000 square feet of this space has been subleased to Primark.

(2) Approximately 104,000 square feet of this space is a vacant JC Penney that has been leased to Tilt Studios.

(3) Approximately 148,000 square feet of this space is a vacant JC Penney.

(4) Approximately 121,000 square feet of this space is a vacant Lord & Taylor that has been leased to Turn 7 Liquidations.

(5) Former Sears was acquired by Cooper Hospital. The site is under development and not currently operating.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate - Consolidated Properties

(in thousands)

	September 30, 2021
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Debt(1)
Core Malls
Capital City Mall	$	137,782	$	-	$	60,324	$	77,458	$	-
Cherry Hill Mall		488,790		-		290,502		198,288		257,581
Cumberland Mall		84,145		635		36,514		48,266		39,585
Dartmouth Mall		92,315		-		50,693		41,622		55,751
Francis Scott Key Mall		98,253		-		48,684		49,569		60,500
Jacksonville Mall		94,628		-		45,698		48,930		-
Magnolia Mall		108,807		-		56,568		52,239		-
Moorestown Mall		187,693		-		87,627		100,066		-
Patrick Henry Mall		157,491		-		81,081		76,410		85,610
Plymouth Meeting Mall		236,600		5,456		116,156		125,900		-
The Mall at Prince Georges		147,796		218		74,984		73,030		-
Springfield Town Center		496,774		-		92,672		404,102		-
Valley Mall		148,969		1,229		57,943		92,255		-
Viewmont Mall		122,186		-		57,861		64,325		67,185
Willow Grove Park		235,014		37,043		120,490		151,567		150,066
Woodland Mall		287,226		90		95,850		191,466		114,850
Total Core Malls		3,124,469		44,671		1,373,647		1,795,493		831,128
Non-Core Malls
Valley View Center		1,039		-		62		977		-
Exton Square Mall		49,019		-		14,621		34,398		-
Valley View Mall (2)		-		-		-		-		27,212
Total Non-Core Malls		50,058		-		14,683		35,375		27,212
Total Malls	$	3,174,527	$	44,671	$	1,388,330	$	1,830,868	$	858,340
Other Properties
Land held for development		4,339		-		-		4,339		-
Total Other Properties	$	4,339	$	-	$	-	$	4,339	$	-
Total Investment in Real Estate	$	3,178,866	$	44,671	$	1,388,330	$	1,835,207	$	858,340
Property held for sale
Moorestown Mall land parcel		1,750		-		-		1,750		-
Woodland Mall land parcel		1,054		-		-		1,054		-
Monroe Power Center land parcel		915		-		-		915		-
Total property held for sale	$	3,719	$	-	$	-	$	3,719	$	-

(1)Refer to page 28 for further debt information.

(2)The mortgage of $27.2 million is outstanding on Valley View Mall. In the third quarter of 2020, the Company derecognized the assets of Valley View Mall as a result of the property being assigned to a special servicer. The Company will continue to recognize the mortgage pending completion of the foreclosure process.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate – Equity Method Investments at Ownership Share

(in thousands)

	September 30, 2021
	Operating Properties and Land Held for Development		Construction in Progress			Accumulated Depreciation			Net Real Estate		Debt(1)
Unconsolidated Malls
Fashion District Philadelphia	$	164,792	$	389		$	(3,580	)	$	161,601	$	152,250
Lehigh Valley Mall		56,414		513			(31,199	)		25,728		93,147
Springfield Mall		58,740		60			(26,698	)		32,102		29,139
Total Unconsolidated Malls	$	279,946	$	962		$	(61,477	)	$	219,431	$	274,536
Unconsolidated Other Retail Properties
Gloucester Premium Outlets		28,007		194			(6,638	)		21,563		21,500
Metroplex Shopping Center		44,954		3,926			(28,088	)		20,792		35,930
The Court at Oxford Valley		28,411		8			(13,659	)		14,760		27,500
Red Rose Commons		14,626		(20	)		(5,714	)		8,892		17,000
Total Unconsolidated Other Retail Properties	$	115,998	$	4,108		$	(54,099	)	$	66,007	$	101,930
Unconsolidated Property Under Development
Pavilion at Market East		6,346		784			(2,413	)		4,717	$	2,960
Total Investment in Real Estate	$	402,290	$	5,854		$	(117,989	)	$	290,155	$	379,425

(1)Refer to page 28 for further debt information.

Pennsylvania Real Estate Investment Trust

Capital Expenditures

Three and Nine Months Ended September 30, 2021

(in thousands)

	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	Consolidated		PREIT's Share of Equity Method Investments		Total		Consolidated		PREIT's Share of Equity Method Investments		Total
Redevelopment projects with incremental GLA and/or anchor replacement (1)	$	2,440	$	2,089	$	4,529	$	5,452	$	5,514	$	10,966
Tenant allowances		2,531		113		2,644		7,063		261		7,324
Recurring capital expenditures:
CAM expenditures		1,297		14		1,311		2,740		63		2,803
Non-CAM expenditures		13		29		42		432		43		475
Total recurring capital expenditures		1,310		43		1,353		3,172		106		3,278
Total	$	6,281	$	2,245	$	8,526	$	15,687	$	5,881	$	21,568

(1) Net of any tenant reimbursements, parcel sales, tax credits or other incentives.

Pennsylvania Real Estate Investment Trust

Debt Analysis as of September 30, 2021

(dollars in thousands)

	Outstanding Debt
	Fixed Rate (1)			% of Total Indebtedness			Variable Rate			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable (2)	$	676,305			30.1	%	$	182,035			8.1	%	$	858,340			38.2	%
Unconsolidated mortgage loans payable (3)		202,716			9.0	%	$	24,460			1.1	%		227,176			10.1	%
Consolidated Term Loans (4)		550,000			24.5	%		403,782			18.0	%		953,782			42.5	%
Unconsolidated Term Loans (5)		54,949			2.4	%		97,301			4.3	%		152,250			6.8	%
First Lien Revolver		-			0.0	%		54,830			2.4	%		54,830			2.4	%
Total Outstanding Debt	$	1,483,970			66.1	%	$	762,409			33.9	%	$	2,246,378			100.0	%
Average Stated Interest Rate		8.28	%					4.72	%					6.50	%

(1) Includes variable rate debt swapped to fixed rate debt.

(2) Excludes deferred financing costs of $1,354.

(3) Reflects our share of mortgage debt of equity method investees. Excludes our share of deferred financing costs of $1,237.

(4) Excludes deferred financing costs of $8,327.

(5) Reflects our share of Term Loan debt of equity method investee.

		Average Debt Balance
		Mortgage Debt			Revolving Facility		Term Loans			Total
Beginning Balance	7/1/2021	$	1,091,137		$	54,830	$	1,096,400			2,242,367
First Lien Term Loan Paydown	8/13/2021		-			-		(3,201	)		(3,201	)
2020 FDP Term Loan Paydown	9/30/2021		-			-		(1,098	)		(1,098	)
Second Lien PIK Interest	9/30/2021		-			-		12,284			12,284
2020 FDP Partnership Loan Accrued Interest	9/30/2021		-			-		1,647			1,647
Mortgage loan amortization, including our share of debt of equity method investees	9/30/2021		(5,621	)		-		-			(5,621	)
Ending Balance	9/30/2021	$	1,085,516		$	54,830	$	1,106,031		$	2,246,378
Weighted Average Balance		$	1,089,255		$	54,830	$	1,098,830		$	2,242,916

(continued next page)

Pennsylvania Real Estate Investment Trust

Debt Analysis as of September 30, 2021

(dollars in thousands)

Debt Maturities(1)
Year	Scheduled Amortization		Deferred Financing Cost Amortization - Mortgages			Mortgage Balance at Initial Maturity Date		First Lien Revolving Facility		Term Loans		Deferred Financing Cost Amortization - Term Loans			Total Debt
2021	$	6,005	$	(963	)	$	141,362	$	-	$	-	$	(1,784	)	$	144,621
2022		17,402		(399	)		310,777		54,830		953,782		(6,542	)		1,329,852
2023		10,596		(289	)		89,661		-		97,301		-			197,269
2024		10,242		(265	)		127,685		-		-		-			137,663
2025		9,031		(209	)		237,644		-		-		-			246,467
Thereafter		13,794		(467	)		111,314		-		54,949		-			179,590
	$	67,071	$	(2,591	)	$	1,018,445	$	54,830	$	1,106,032	$	(8,326	)	$	2,235,461

(1) The weighted average period to total debt maturity is 1.99 years, excluding extension options. Includes 100% of revolver, term loan and mortgage loan debt from consolidated properties and our share of term loan and mortgage loan debt of equity method investees.

Weighted Average Mortgage Interest Rates
Year	Balance (1)		Interest Rate
2021	$	142,062		4.17	%
2022		318,666		3.81	%
2023		94,641		4.36	%
2024		127,685		4.55	%
2025		264,814		4.10	%
Thereafter		137,647		3.79	%
Total	$	1,085,516		4.06	%

(1) Includes our share of debt of equity method investees.

Pennsylvania Real Estate Investment Trust

Debt Schedule as of September 30, 2021

(dollars in thousands)

	Debt			Interest Rate			Annual Debt Service		Balance at Maturity			Initial Maturity Date	Fully Extended Maturity Date
Fixed Rate Mortgage Loans
Cumberland Mall	$	39,585			4.40	%	$	3,433	$	38,157		August 2022	August 2022
Cherry Hill Mall		257,581			3.90	%		16,980		251,120		September 2022	September 2022
Dartmouth Mall		55,751			3.97	%		3,825		53,299		April 2023	April 2023
Metroplex Shopping Center (2)		35,930			5.00	%		2,818		33,502		October 2023	October 2023
Francis Scott Key Mall (1)		60,500			5.52	%		2,230		60,500		June 2024	June 2025
Patrick Henry Mall		85,610			4.35	%		5,748		77,591		July 2025	July 2025
Springfield Mall (2)		29,139			4.45	%		1,964		26,299		October 2025	October 2025
Willow Grove Park		150,066			3.88	%		9,599		133,754		October 2025	October 2025
Lehigh Valley Mall (2)		93,147			4.06	%		5,768		79,789		November 2027	November 2027
Red Rose Commons (2)		17,000			3.28	%		978		13,183		July 2031	July 2031
The Court at Oxford Valley (2)		27,500			3.20	%		2,058		18,343		July 2031	July 2031
Valley View Mall (3)		27,212			5.95	%		-		27,212		July 2020	July 2020
Total Fixed Rate Mortgage Loans	$	879,021			4.19	%	$	55,401	$	812,749
Variable Rate Mortgage Loans
Woodland Mall	$	114,850			3.75	%	$	8,507	$	114,150		December 2021	December 2021
Gloucester Premium Outlets (2)		21,500			1.59	%		341		21,500		March 2022	March 2022
Pavilion East Associates (2)		2,960			4.00	%		218		2,860		May 2023	May 2023
Viewmont Mall		67,185			3.69	%		2,476		67,185		June 2024	June 2024
Total Variable Rate Mortgage Loans	$	206,495			3.51	%	$	2,694	$	70,045
Total Mortgage Loans	$	1,085,516			4.06	%	$	58,095	$	882,795
Consolidated Mortgage Loans	$	858,340			4.11	%	$	52,798	$	822,970
Consolidated Deferred Financing Fees		(1,354	)	n/a			n/a		n/a
Unconsolidated Mortgage Loans		227,175			3.86	%		66,943		195,474
Unconsolidated Deferred Financing Fees (3)		(1,237	)	n/a			n/a		n/a
First Lien Term Loan (1)		380,065			8.22	%		31,246		380,065		December 2022	December 2023
Second Lien Term Loan (1)		573,717			8.91	%		51,136		573,717	(4)	December 2022	December 2023
2018 FDP Term Loan		97,301			4.00	%		3,892		97,301		January 2023	January 2023
Term Loan Deferred Financing Fees		(8,327	)	n/a			n/a		n/a
First Lien Revolver		54,830			4.00	%		2,193		54,830		December 2022	December 2022
2020 FDP Partnership Loan		54,949			15.00	%		8,242		54,949		December 2027	December 2027
Total	$	2,235,460			6.27	%	$	216,451	$	2,179,307
Amortization of Deferred Financing Fees	—				0.20	%	—		—
Effective Interest Rate	$	2,235,460			6.47	%	$	216,451	$	2,179,307

(1) All or a portion of the loan has been effectively swapped to the fixed interest rate presented.

(2) Includes our share of debt of equity method investees, based on our ownership percentage.

(3) The mortgage of $27.2 million is outstanding on Valley View Mall. In the third quarter of 2020, the Company derecognized the assets of Valley View Mall as a result of the property being assigned to a special servicer. The Company will continue to recognize the mortgage until the foreclosure process is complete. The Company has no annual debt service on the property.

(4) The balance at maturity is subject to increase as additional interest accrues to the principal balances of the loans.

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios (1)

	September 30, 2021
Debt Yield Ratio
Maintain a minimum Debt Yield Ratio (Senior) of 11.35% from and after June 30, 2021	19.1%
Maintain a minimum Debt Yield Ratio (Corporate) of (a) 6.50% from June 30, 2021 through and including September 30, 2021 and (b) 7.25% from and after October 1, 2021	8.5%
Liquidity
Maintain minimum liquidity of at least $25.0 million, to be comprised of unrestricted cash held in certain deposit accounts subject to control agreements	$96.3 million

(1)The First Lien Credit Agreement and Second Lien Credit Agreement (collectively, the "Credit Agreements"), contain identical affirmative and negative covenants customarily found in such agreements, including requirements that the Company, on a consolidated basis, maintain certain financial ratios and liquidity. All capitalized terms used on this page have the meanings ascribed to such terms in the Credit Agreements. In addition to the ratios set forth herein, there are several other requirements set forth in the covenants under the Credit Agreements with which the Company must comply. As of September 30, 2021, we were in compliance with terms under the Credit Agreements, however, a material decline in future operating results could affect our ability to comply with the financial covenants.

Pennsylvania Real Estate Investment Trust

Forward Looking Statements

FORWARD LOOKING STATEMENTS

This Quarterly Supplemental and Operating Information for the quarter ended September 30, 2021, together with other statements and information publicly disseminated by us, contain certain forward-looking statements that can be identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “project,” “intend,” “may” or similar expressions. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters, including our expectations regarding the impact of COVID-19 on our business, that are not historical facts. These forward-looking statements reflect our current views about future events, achievements, results, cost reductions, dividend payments and the impact of COVID-19 and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, our business might be materially and adversely affected by the following:

the effectiveness of our financial restructuring and any additional strategies that we may employ to address our liquidity and capital resources in the future;

our ability to achieve forecasted revenue and pro forma leverage ratio and generate free cash flow to further reduce indebtedness;

the COVID-19 global pandemic and the public health and governmental response, which have and may continue to exacerbate many of the risks listed herein;

changes in the retail and real estate industries, including bankruptcies, consolidation and store closings, particularly among anchor tenants;

current economic conditions, including current high rates of unemployment and its effects on consumer confidence and spending, supply chain challenges and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions;

our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise;

our ability to maintain and increase property occupancy, sales and rental rates;

increases in operating costs that cannot be passed on to tenants;

the effects of online shopping and other uses of technology on our retail tenants;

risks related to our development and redevelopment activities, including delays, cost overruns and our inability to reach projected occupancy or rental rates;

social unrest and acts of vandalism or violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales;

the frequency, severity and potential impact of extreme weather events at or near our properties, including potential property damage, some or all of which may not be covered by insurance, the potential effect on traffic and sales, and the potential increased costs of insurance coverage;

our ability to sell properties that we seek to dispose of or our ability to obtain prices we seek;

potential losses on impairment of certain long-lived assets, such as real estate, including losses that we might be required to record in connection with any disposition of assets;

our substantial debt and our ability to remain in compliance with our financial covenants under our debt facilities;

our ability to raise capital, including through sales of properties or interests in properties, subject to the terms of our Credit Agreements; and

potential dilution from any capital raising transactions or other equity issuances.

Additional factors that might cause future events, achievements or results to differ materially from those expressed or implied by our forward-looking statements include those discussed herein and in our Annual Report on Form 10-K for the year ended December 31, 2020 in the section entitled “Item 1A. Risk Factors” and any subsequent reports we file with the SEC. Any forward-looking statements made by us speak only as of the date on which they are made, and we do not intend to update or revise any forward-looking statements to reflect new information, future event or otherwise.

Pennsylvania Real Estate Investment Trust

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 commonly used by REITs, as net income (computed in accordance with GAAP) excluding (i) depreciation and amortization of real estate, (ii) gains and losses on sales of certain real estate assets, (iii) gains and losses from change in control and (iv) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. We compute 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 we do. NAREIT’s established guidance provides that excluding impairment write downs of depreciable real estate is consistent with the NAREIT definition.

FFO is a commonly used measure of operating performance and profitability among REITs. We use FFO and FFO per diluted share and unit of limited partnership interest in our operating partnership (“OP Unit”) in measuring our performance against our peers and as one of the performance measures for determining incentive compensation amounts earned under certain of our performance-based executive compensation programs.

FFO does not include gains and losses on sales of operating real estate assets or impairment write downs of depreciable real estate (including development land parcels), which are included in the determination of net loss 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 loss and net cash used in operating activities, and other non-GAAP financial performance measures, such as NOI. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net loss (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that net loss is the most directly comparable GAAP measurement to FFO.

When applicable, we also present FFO, as adjusted, and FFO per diluted share and OP Unit, as adjusted, which are non-GAAP measures, for the three and nine months ended September 30, 2021 and 2020, to show the effect of such items as gain or loss on debt extinguishment (including accelerated amortization of financing costs), impairment of assets, provision for employee separation expense, insurance recoveries or losses, net, gain on derecognition of property, gain or loss on hedge ineffectiveness and reorganization expenses which had an effect on our results of operations, but are not, in our opinion, indicative of our ongoing operating performance.

We believe that FFO is helpful to management and investors as a measure of operating performance because it excludes various items included in net loss that do not relate to or are not indicative of operating performance, such as gains on sales of operating real estate and depreciation and amortization of real estate, among others. We believe that Funds From Operations, as adjusted, is helpful to management and investors as a measure of operating performance because it adjusts FFO to exclude items that management does not believe are indicative of our operating performance, such as provision for employee separation expense, gain on hedge ineffectiveness and reorganization expenses.

Net Operating Income (NOI)

NOI (a non-GAAP measure) is derived from real estate revenue (determined in accordance with GAAP, including lease termination revenue), minus property operating expenses (determined in accordance with GAAP), plus our pro rata share of revenue and property operating expenses of our unconsolidated partnership investments. NOI does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net loss (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. It is not indicative of funds available for our cash needs, including our ability to make cash distributions.

We believe NOI 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. We believe that net loss is the most directly comparable GAAP measure to NOI. NOI excludes other income, depreciation and amortization, general and administrative expenses, insurance recoveries, net, provision for employee separation expenses, project costs and other expenses, interest expense, reorganization expenses, impairment of assets, equity in loss/income of partnerships, gain on extinguishment of debt, gain/loss on sale of real estate and gain/loss on sales of non-operating real estate.

Same Store NOI

Same Store NOI is calculated using retail properties owned for the full periods presented and excludes properties acquired or disposed of, under redevelopment, or designated as non-core during the periods presented. Non Same Store NOI is calculated using the retail properties excluded from the calculation of Same Store NOI.

Funds Available for Distribution (FAD)

FAD is a measure of a real estate company’s cash flows generated by operations and capacity to pay dividends. The Company calculates FAD by starting with FFO as adjusted and subtracting (1) straight-line rent, (2) normalized recurring capital expenditures that are capitalized but necessary to maintain our properties, (3) operational tenant allowances, (4) non-cash compensation charges, (5) capitalized leasing costs, and (6) amortization of above- and below-market lease intangibles.

We believe that net income is the most directly comparable GAAP measurement to FAD. We believe FAD provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. In addition, we believe that to further understand our liquidity, FAD should be compared with our cash flow from operating activities determined in accordance with GAAP, as presented in our 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 for Real Estate (EBITDAre)

NAREIT defines Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”), which is a non-GAAP measure, as net income (computed in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization; plus or minus losses and gains on the disposition of depreciated property, including losses/ gains on change in control; plus impairment write downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; plus or minus adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates. We compute EBITDAre in accordance with the standards established by NAREIT, which may not be comparable to EBITDAre 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 we do.

EBITDAre does not include interest expense, income tax expense, gains or losses on sales of operating real estate or impairment writedowns of depreciable real estate, which are included in the determination of net income in accordance with GAAP. Accordingly, EBITDAre is not a comprehensive measure of our operating cash flows. EBITDAre 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 our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that net income is the most directly comparable GAAP measurement to EBITDAre.

We believe that EBITDAre is helpful to management and investors as a measure of operating performance because it provides an additional performance measure to management and investors to facilitate the evaluation and comparison of the Company to other REITs and to other non-real estate commercial enterprises.