8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of report (Date of earliest event reported): August 3, 2023

Pennsylvania Real Estate Investment Trust

(Exact Name of Registrant as Specified in its Charter)

Pennsylvania	001-6300		23-6216339
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)		(IRS Employer Identification No.)
One Commerce Square 2005 Market Street, Suite 1000 Philadelphia, Pennsylvania		19103
(Address of Principal Executive Offices)		(Zip Code)

Registrant's telephone number, including area code: (215) 875-0700

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: None*

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Shares of Beneficial Interest, par value $1.00 per share	PRET	*
Series B Preferred Shares, par value $0.01 per share	PRETL	*
Series C Preferred Shares, par value $0.01 per share	PRETM	*
Series D Preferred Shares, par value $0.01 per share	PRETN	*

*Pennsylvania Real Estate Investment Trust's securities began trading exclusively on the over-the-counter market on December 16, 2022 and now trades on OTCQB under the symbols, PRET, PRETL, PRETM, and PRETN.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On August 3, 2023, Pennsylvania Real Estate Investment Trust provided on its website at www.preit.com its Quarterly Supplemental Disclosure dated June 30, 2023. A copy of the Quarterly Supplemental Disclosure is attached as an exhibit to this report.

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

Item 9.01	Financial Statements and Exhibits.
99.1	Quarterly Supplemental Disclosure Dated June 30, 2023
104	Cover Page Interactive Data File, formatted in Inline XBRL (embedded within the Inline XBRL document).

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

	PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
August 3, 2023	By:	/s/ Lisa M. Most
		Lisa M. Most
		Executive Vice President, Secretary and General Counsel

EX-99.1

Exhibit 99.1

 

Supplemental Financial and Operating Information

June 30, 2023

 

www.preit.com

OTCQB: PRET

OTCQB: PRETL, PRETM, PRETN

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

June 30, 2023

Table of Contents
Introduction
Company Information	1
Earnings Release	2
Changes in Funds from Operations (FFO) for the Three and Six Months Ended June 30, 2023	5
Market Capitalization and Capital Resources	6
Operating Results
Statements of Operations - Three and Six Months Ended June 30, 2023 and 2022	7
Computation of Earnings Per Share - Three Months and Six Months Ended June 30, 2023 and 2022	8
Reconciliation of Net Operating Income (NOI) and EBITDAre (Non-GAAP Measures) - Three Months and Six Months Ended June 30, 2023 and 2022	9
Reconciliation of Net Loss (GAAP Measure) to Net Operating Income (NOI) from Consolidated Properties (Non-GAAP Measure) - Three Months Ended June 30, 2023 and 2022	10
Reconciliation of Equity in (Loss) Income of Partnerships (GAAP Measure) to Net Operating Income (NOI) from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Three Months Ended June 30, 2023 and 2022	11
Reconciliation of Net Loss (GAAP Measure) to Net Operating Income (NOI) from Consolidated Properties (Non-GAAP Measure) - Six Months Ended June 30, 2023 and 2022	12
Reconciliation of Equity in (Loss) Income of Partnerships (GAAP Measure) to Net Operating Income (NOI) from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Six Months Ended June 30, 2023 and 2022	13
Reconciliation of Net Loss (GAAP Measure) to Funds From Operations (FFO) and Funds Available for Distribution (FAD) (Non-GAAP Measures) - Six Months Ended June 30, 2023 and 2022	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 Six Months Ended June 30, 2023	17
Summarized Sales and Rent Per Square Foot and Occupancy Percentages	20
Mall Occupancy Percentage and Sales Per Square Foot	21
Top Twenty Tenants as of June 30, 2023	22
Lease Expirations as of June 30, 2023	23
Property Information as of June 30, 2023	24
Balance Sheet
Investment in Real Estate - Consolidated Properties	27
Investment in Real Estate - Equity Method Investments at Ownership Share	28
Capital Expenditures - Three and Six Months Ended June 30, 2023	29
Debt Analysis as of June 30, 2023	30
Debt Schedule as of June 30, 2023	32
Selected Debt Ratios	33
Forward Looking Statements	34
Definitions	35

Pennsylvania Real Estate Investment Trust

Company Information

Background

PREIT (OTCQB:PRET) is a publicly traded real estate investment trust (REIT) that owns and manages innovative properties developed to be thoughtful, community-centric hubs. PREIT’s robust portfolio of carefully curated, ever-evolving properties generates success for its tenants and meaningful impact for the communities it serves by keenly focusing on five core areas of established and emerging opportunity: multi-family & hotel, health & tech, retail, essentials & grocery and experiential. Located primarily in densely-populated regions, PREIT is a top operator of high quality, purposeful places that serve as one-stop destinations for customers to shop, dine, play and stay. The portfolio consists of 23 properties, 22 of which are operating properties and one is a development property. The 22 operating retail properties have a total of 18.3 million square feet and include 19 shopping malls and three 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:

Mario Ventresca

EVP & CFO

One Commerce Square

2005 Market Street, Suite 1000

Philadelphia, PA 19103

Telephone: (215) 875-0703

Heather Crowell

heather@gregoryfca.com

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

1

 

CONTACT: AT THE COMPANY

Mario Ventresca

EVP & CFO

(215) 875-0703

INVESTOR RELATIONS

Heather Crowell

heather@gregoryfca.com

PREIT Reports Second Quarter 2023 Results

Core Mall Total Occupancy Grew to 94.2%, Portfolio 95.0% Leased

Core Mall Sales Per Square Foot Were $592 in June

Average Renewal Spreads Were 4.7% for the Quarter Ended June 30, 2023

Philadelphia, August 3, 2023 - PREIT (OTCQB:PRET) today reported results for the three and six months ended June 30, 2023. 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 June 30,						Six Months Ended June 30,
(per share amounts)	2023			2022			2023			2022
Net loss - basic and diluted	$	(9.73	)	$	(3.32	)	$	(19.48	)	$	(10.72	)
FFO	$	(3.15	)	$	1.72		$	(6.20	)	$	1.51
FFO, as adjusted	$	(3.15	)	$	1.71		$	(6.20	)	$	0.83

“Our quarterly results demonstrate that our portfolio continues to be attractive to tenants and customers with core mall non-anchor occupancy improving 120 basis points and total leasing activity nearly 60% ahead of last year," said Joseph F. Coradino, Chairman and CEO of PREIT. “Improvements in occupancy and renewal spreads are clear indicators of compelling nature of our portfolio to tenants."

•Same Store NOI, excluding lease termination revenue, decreased 3.4% and decreased 2.2% when excluding Whole Foods at Plymouth Meeting for the three months ended June 30, 2023 compared to the three months ended June 30, 2022.

•Robust leasing activity is driving increased occupancy with Core Mall Total Occupancy increasing by 40 basis points to 94.2% compared to the second quarter 2022. Core Mall non-anchor Occupancy improved 70 basis points to 91.2% compared to the second quarter 2022.

•Core Mall total leased space, at 95.0%, exceeds occupied space by 80 basis points, and Core Mall non-anchor leased space, at 92.4%, is higher than occupied space by 120 basis points when including executed new leases slated for future occupancy, demonstrating the rapid pace of leasing activity.

2

•For the rolling 12 month period ended June 30, 2023, Core Mall comparable sales were $592 per square foot, compared to $539 for the year ended December 31, 2019.

•Average renewal spreads for the three and six months ended June 30, 2023 were 4.7% and 5.1%, respectively.

•Since the beginning of 2023, the Company sold assets generating just over $30 million in gross proceeds.

Leasing and Redevelopment

•216,000 square feet of leases are signed for future openings, which is expected to contribute annualized gross rent of approximately $6.15 million.

•Construction is underway on the new self-storage facility in previously unused, below grade space at Mall at Prince George’s with an anticipated opening in the third quarter of 2023.

•Tilted 10 opened Phase II of its planned two-level indoor family entertainment center at Willow Grove Park in July 2023, adding family entertainment to this locally-loved destination shopping experience.

•At Moorestown Mall, construction is underway for the new state-of-the-art Cooper University Healthcare facility, expected to open its initial phase in fall 2023, and the 375-unit Pearl apartment development, following completion of the sale of land in the second quarter of 2022.

•At Springfield Town Center, tenant construction is underway for a new prototype, 32,000 square foot, LEGO® Discovery Center with an announced grand opening of August 9, 2023. Construction on the new 30,000 square foot Burlington location is also underway for an anticipated opening later this year. Municipal approvals were obtained for the development of 460 apartments and a 165-room hotel, setting the stage for sale of these parcels in the second half of 2023.

Primary Factors Affecting Financial Results for the Three Months Ended June 30, 2023 and 2022

•Net loss attributable to PREIT common shareholders was $51.8 million (which takes into consideration the accrual of preferred dividends that accumulated during the quarter but have not been paid), or $(9.73) per basic and diluted share for the three months ended June 30, 2023, compared to net loss attributable to PREIT common shareholders of $17.6 million, or $(3.32) per basic and diluted share for the three months ended June 30, 2022.

•Funds from Operations decreased in the three months ended June 30, 2023 compared to the prior year period primarily due to higher interest expense and a decrease in gain on sale of equity method investment.

•FFO for the three months ended June 30, 2023 was $(3.15) per diluted share and OP Unit compared to $1.72 per diluted share and OP Unit for the three months ended June 30, 2022.

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 six months ended June 30, 2023 and 2022 is included on page 15.

3

Liquidity and Financing Activities

As of June 30, 2023, the Company had $102.5 million available under its First Lien Revolving Credit Facility. The Company’s corporate cash balances, when combined with available credit, provide total liquidity of $110.7 million. The Company’s Credit Facilities, with a balance of $1,023.1 million as of June 30, 2023, mature on December 10, 2023. The Company is working to address the upcoming maturity by pursuing all available alternatives, including refinancing, selling assets and engaging in discussions with lenders.

During the quarter, the Company extended the mortgage loan secured by Cherry Hill Mall through December 1, 2023 with an additional five month extension option exercisable subject to satisfaction of certain conditions. The Company also extended the maturity date on the mortgage loan secured by Woodland Mall through October 5, 2023.

Asset Dispositions

During the quarter, the Company closed on the sale of a land parcel to Main Event at Woodland Mall for $4.8 million.

2023 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 August 3, 2023, to review the Company’s results and future outlook. To listen to the call, please dial1(888) 330-2024 (domestic toll free), or 1(646) 960-0187 (international), and request to join the PREIT call, Conference ID 9326912,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 (OTCQB:PRET) is a publicly traded real estate investment trust that owns and manages innovative properties developed to be thoughtful, community-centric hubs. PREIT's robust portfolio of carefully curated, ever-evolving properties generates success for its tenants and meaningful impact for the communities it serves by keenly focusing on five core areas of established and emerging opportunity: multi-family & hotel, health & tech, retail, essentials & grocery and experiential. Located primarily in densely-populated regions, PREIT is a top operator of high quality, purposeful places that serve as one-stop destinations for customers to shop, dine, play and stay. Additional information is available at www.preit.com or on Twitter, Instagram or LinkedIn.

Rounding

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

4

Pennsylvania Real Estate Investment Trust

Changes in Funds from Operations (1)

For the Three and Six Months Ended June 30, 2023 as compared to the Three and Six Months Ended June 30, 2022

(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 June 30, 2023			Per Diluted Share and OP Unit			Six Months Ended June 30, 2023			Per Diluted Share and OP Unit
Funds from Operations, as adjusted June 30, 2022	$	9,197		$	1.71		$	4,440		$	0.83
Changes - Q2 2022 to Q2 2023
Contribution from anchor replacements and new box tenants		302			0.05			554			0.11
Impact from bankruptcies		(249	)		(0.05	)		(426	)		(0.08	)
Other leasing activity, including base rent and net CAM and real estate tax recoveries		(1,328	)		(0.25	)		(753	)		(0.14	)
Lease termination revenue		(1,335	)		(0.25	)		(1,156	)		(0.22	)
Credit losses		(721	)		(0.14	)		(756	)		(0.14	)
Other		228			0.05			445			0.09
Same Store NOI(1) from unconsolidated properties		228			0.04			1,147			0.22
Same Store NOI		(2,875	)		(0.53	)		(945	)		(0.16	)
Non Same Store NOI		(2,196	)		(0.41	)		(3,951	)		(0.74	)
General and administrative expenses		(10,093	)		(1.88	)		(21,218	)		(3.94	)
Capitalization of leasing costs		(33	)		(0.01	)		203			0.04
Other		2,206			0.40			13,468			2.49
Interest expense, net		(13,188	)		(2.44	)		(25,412	)		(4.72	)
Funds from Operations, as adjusted June 30, 2023		(16,982	)		(3.15	)		(33,415	)		(6.20	)
Provision for employee separation expense		2			-			(3	)		-
Funds from Operations June 30, 2023	$	(16,980	)	$	(3.15	)	$	(33,418	)	$	(6.20	)

(1) Funds from Operations and NOI are non-GAAP measures. See definitions of Funds from Operations and NOI on page 34.

5

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands)

	June 30, 2023			December 31, 2022
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding		5,341			5,356
OP Units Outstanding		69			69
Total Common Shares and OP Units Outstanding		5,410			5,425
Equity Market Capitalization—Common Shares and OP Units	$	3,192		$	6,347
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	$	386,942		$	390,097
DEBT CAPITALIZATION
Secured Debt Balance (1)	$	2,110,813		$	2,112,693
TOTAL MARKET CAPITALIZATION	$	2,497,755		$	2,502,790
Equity Capitalization/Total Market Capitalization		15.5	%		15.6	%
Debt Capitalization/Total Market Capitalization		84.5	%		84.4	%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	42,522		$	36,945
Revolving Facility		130,000			130,000
Amount Outstanding		(27,481	)		(22,481	)
Available Revolving Facility (2)		102,519			107,519
Term Loans		1,158,101			1,138,404
Amount Borrowed		(1,158,101	)		(1,138,404	)
Available Term Loans		-			-
TOTAL	$	145,041		$	144,464

(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 $37.9 million and $52.2 million of secured debt from our share of the FDP Term Loans as of June 30, 2023 and December 31, 2022, and $124.6 million and $107.0 million from our share of the FDP Partnership Loan as of June 30, 2023 and December 31, 2022, respectively.

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

6

Pennsylvania Real Estate Investment Trust

Statements of Operations – Three and Six Months Ended June 30, 2023 and 2022

(unaudited)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(in thousands of dollars)	2023			2022			2023			2022
REVENUE:
Real estate revenue:
Lease revenue	$	61,508		$	67,447		$	123,023		$	131,730
Expense reimbursements		4,314			4,215			8,967			8,359
Other real estate revenue		1,561			1,396			2,567			2,163
Total real estate revenue		67,383			73,058			134,557			142,252
Other income		62			69			153			310
Total revenue		67,445			73,127			134,710			142,562
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes		(25,353	)		(26,075	)		(51,512	)		(53,947	)
Utilities		(3,453	)		(3,528	)		(6,848	)		(7,089	)
Other property operating expenses		(2,090	)		(2,199	)		(4,305	)		(4,339	)
Total property operating expenses		(30,896	)		(31,802	)		(62,665	)		(65,375	)
Depreciation and amortization		(25,970	)		(28,382	)		(52,339	)		(57,492	)
General and administrative expenses		(10,093	)		(9,744	)		(21,218	)		(21,227	)
Other (expenses) income		(8	)		66			(11	)		(78	)
Total operating expenses		(66,967	)		(69,862	)		(136,233	)		(144,172	)
Interest expense, net (1)		(43,154	)		(32,601	)		(84,202	)		(63,992	)
Total expenses		(110,121	)		(102,463	)		(220,435	)		(208,164	)
Equity in loss of partnerships (2)		(3,986	)		(1,188	)		(6,682	)		(1,583	)
Gain on sales of interests in real estate		—			1,701			—			1,701
Gain on sale of equity method investment		—			9,053			—			9,053
Gain on sales of interests in non operating real estate		1,057			8,755			1,057			8,755
Gain on sale of preferred equity interest		—			—			—			3,688
Net loss		(45,605	)		(11,015	)		(91,350	)		(43,988	)
Less: net loss attributable to noncontrolling interest		654			225			1,313			729
Net loss attributable to PREIT		(44,951	)		(10,790	)		(90,037	)		(43,259	)
Less: preferred share dividends		(6,844	)		(6,844	)		(13,688	)		(13,688	)
Net loss attributable to PREIT common shareholders	$	(51,795	)	$	(17,634	)	$	(103,725	)	$	(56,947	)

(1) Net of capitalized interest expense of $82 thousand and $21 thousand for the three months ended June 30, 2023 and 2022, respectively, and $0.2 million and $45 thousand for the six months ended June 30, 2023 and 2022, respectively.

(2) Equity in loss of partnerships is net of capitalized interest expense of $21 thousand and $0 for the three months ended June 30, 2023 and 2022, respectively, and $45 thousand and $0 for the six months ended June 30, 2023 and 2022, respectively.

7

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share – Three and Six Months Ended June 30, 2023 and 2022

(unaudited)

	For The Three Months Ended June 30,						For The Six Months Ended June 30,
(in thousands, except per share amounts)	2023			2022			2023			2022
Net loss used to calculate loss per share—basic and diluted	$	(51,795	)	$	(17,634	)	$	(103,725	)	$	(56,947	)
Basic and diluted loss per share:	$	(9.73	)	$	(3.32	)	$	(19.48	)	$	(10.72	)
Weighted average shares outstanding—basic		5,325			5,317			5,324			5,311
Effect of common share equivalents(1)		—			—			—			—
Weighted average shares outstanding—diluted		5,325			5,317			5,324			5,311

(1)The Company had net losses used to calculate earnings per share for the three and six months ended June 30, 2023 and 2022. 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.

8

Pennsylvania Real Estate Investment Trust

Reconciliation of Net Operating Income and Earnings Before Interest, Income Taxes, Depreciation, and Amortization for Real Estate (Non-GAAP Measures) - Three and Six Months Ended June 30, 2023 and 2022

(in thousands)

Net Operating Income ("NOI") Reconciliation for the Three Months Ended June 30, 2023 and 2022 (1)

	Same Store				Change						Non Same Store					Total
(in thousands of dollars)	2023		2022		$			%			2023			2022		2023		2022
NOI from consolidated properties	$	36,903	$	40,005	$	(3,102	)		(7.8	%)	$	(416	)	$	1,251	$	36,487	$	41,256
NOI attributable to equity method investments, at ownership share		7,505		7,275		230			3.2	%		31			560		7,536		7,835
Total NOI		44,408		47,280		(2,872	)		(6.1	%)		(385	)		1,811		44,023		49,091
Less: lease termination revenue		228		1,551		(1,323	)		(85.3	%)		-			41		228		1,592
Total NOI excluding lease termination revenue	$	44,180	$	45,729	$	(1,549	)		(3.4	%)	$	(385	)	$	1,770	$	43,795	$	47,499

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

Net Operating Income ("NOI") Reconciliation for the Six Months Ended June 30, 2023 and 2022 (1)

	Same Store				Change						Non Same Store					Total
(in thousands of dollars)	2023		2022		$			%			2023			2022		2023		2022
NOI from consolidated properties	$	72,744	$	74,836	$	(2,092	)		(2.8	%)	$	(852	)	$	2,042	$	71,892	$	76,878
NOI attributable to equity method investments, at ownership share		16,249		15,102		1,147			7.6	%		105			1,162		16,354		16,264
Total NOI		88,993		89,938		(945	)		(1.1	%)		(747	)		3,204		88,246		93,142
Less: lease termination revenue		566		2,345		(1,779	)		(75.9	%)		-			49		566		2,394
Total NOI excluding lease termination revenue	$	88,427	$	87,593	$	834			1.0	%	$	(747	)	$	3,155	$	87,680	$	90,748

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Net loss	$	(45,605	)	$	(11,015	)	$	(91,350	)	$	(43,988	)
Depreciation and amortization:
Consolidated		25,970			28,382			52,339			57,492
Unconsolidated properties at ownership share		2,789			2,973			5,634			5,995
Interest expense:
Consolidated		43,154			32,601			84,202			63,992
Unconsolidated properties at ownership share		8,630			5,995			16,967			11,765
Gain on sales of interest in real estate		-			(1,701	)		-			(1,701	)
Gain on sale of equity method investment		-			(9,053	)		-			(9,053	)
Loss on project costs by equity method investee		35			-			323			-
EBITDAre	$	34,973		$	48,182		$	68,115		$	84,502

(1) EBITDAre is a non-GAAP measure. See definition on page 35.

9

Pennsylvania Real Estate Investment Trust

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

Three Months Ended June 30, 2023 and 2022

(in thousands)

	Three Months Ended June 30,
	2023			2022
Net loss	$	(45,605	)	$	(11,015	)
Other income		(62	)		(69	)
Depreciation and amortization		25,970			28,382
General and administrative expenses		10,093			9,744
Other (expenses) income		8			(66	)
Interest expense, net		43,154			32,601
Equity in loss of partnerships		3,986			1,188
Gain on sales of interest in real estate		-			(1,701	)
Gain on sale of equity method investment		-			(9,053	)
Gain on sales of non operating real estate		(1,057	)		(8,755	)
NOI from consolidated properties (1)	$	36,487		$	41,256

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

	Same Store						Non Same Store						Total
	2023			2022			2023			2022			2023			2022
Real estate revenue
Base rent	$	46,022		$	46,599		$	651		$	2,651		$	46,673		$	49,250
CAM reimbursement income		8,087			7,851			133			454			8,220			8,305
Real estate tax income		6,110			6,773			12			381			6,122			7,154
Percentage rent		246			301			89			170			335			471
Lease termination revenue		155			1,490			-			40			155			1,530
		60,620			63,014			885			3,696			61,505			66,710
Less: credit losses		12			733			(9	)		4			3			737
Lease revenue		60,632			63,747			876			3,700			61,508			67,447
Expense reimbursements		4,206			3,971			108			244			4,314			4,215
Other real estate revenue		1,498			1,327			61			69			1,559			1,396
Total real estate revenue		66,336			69,045			1,045			4,013			67,381			73,058
Property operating expenses
CAM and real estate taxes		(24,189	)		(23,850	)		(1,164	)		(2,225	)		(25,353	)		(26,075	)
Utilities		(3,328	)		(3,216	)		(125	)		(312	)		(3,453	)		(3,528	)
Other property operating expenses		(1,917	)		(1,974	)		(173	)		(225	)		(2,090	)		(2,199	)
Total property operating expenses		(29,434	)		(29,040	)		(1,462	)		(2,762	)		(30,896	)		(31,802	)
NOI from consolidated properties(1)		36,902			40,005			(417	)		1,251			36,485			41,256
Less: Lease termination revenue		155			1,490			-			40			155			1,530
NOI from consolidated properties excluding lease termination revenue(1)	$	36,747		$	38,515		$	(417	)	$	1,211		$	36,330		$	39,726
% change in Same Store NOI from consolidated properties excluding lease termination revenue				(4.6%)

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

10

Pennsylvania Real Estate Investment Trust

Reconciliation of Equity in (Loss) Income of Partnerships (GAAP Measure) to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure)

Three Months Ended June 30, 2023 and 2022

(in thousands of dollars)

	Three Months Ended June 30,
	2023			2022
Equity in loss of partnerships	$	(3,986	)	$	(1,188	)
Depreciation and amortization		2,789			2,973
Interest expense and other expenses, net		8,697			6,050
Loss on project costs by equity method investee		35			-
NOI from equity method investments at ownership share(1)	$	7,535		$	7,835

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

	Same Store						Non Same Store						Total
	2023			2022			2023			2022			2023			2022
Real estate revenue
Base rent	$	7,870		$	7,407		$	8		$	530		$	7,879		$	7,937
CAM reimbursement income		1,826			1,888			-			134			1,826			2,022
Real estate tax income		982			836			-			99			982			935
Percentage rent		214			443			108			201			322			644
Lease termination revenue		73			61			-			1			73			62
		10,965			10,635			116			965			11,082			11,600
Less: credit losses		(95	)		166			-			(19	)		(95	)		147
Lease revenue		10,870			10,801			116			946			10,987			11,747
Expense reimbursements		881			591			-			94			881			685
Other real estate revenue		687			559			-			19			686			578
Total real estate revenue		12,438			11,951			116			1,059			12,554			13,010
Property operating expenses
CAM and real estate taxes		(3,828	)		(3,425	)		(32	)		(303	)		(3,860	)		(3,728	)
Utilities		(388	)		(526	)		-			(43	)		(388	)		(569	)
Other property operating expenses		(719	)		(725	)		(52	)		(153	)		(771	)		(878	)
Total property operating expenses		(4,935	)		(4,676	)		(84	)		(499	)		(5,019	)		(5,175	)
NOI from equity method investments at ownership share(1)		7,503			7,275			32			560			7,535			7,835
Less: Lease termination revenue		73			61			-			1			73			62
NOI from equity method investments at ownership share excluding lease termination revenue(1)	$	7,430		$	7,214		$	32		$	559		$	7,462		$	7,773
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				3.0%

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

11

Pennsylvania Real Estate Investment Trust

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

Six Months Ended June 30, 2023 and 2022

(in thousands)

	Six Months Ended June 30,
	2023			2022
Net loss	$	(91,350	)	$	(43,988	)
Other income		(153	)		(310	)
Depreciation and amortization		52,339			57,492
General and administrative expenses		21,218			21,227
Other (expenses) income		11			78
Interest expense, net		84,202			63,992
Equity in loss of partnerships		6,682			1,583
Gain on sales of interests in real estate		-			(1,701	)
Gain on sale of equity method investment		-			(9,053	)
Gain on sale of preferred equity interest		-			(3,688	)
Gain on sales of interest in non operating real estate		(1,057	)		(8,755	)
NOI from consolidated properties(1)	$	71,892		$	76,877

	Same Store						Non Same Store						Total
	2023			2022			2023			2022			2023			2022
Real estate revenue
Base rent	$	92,009		$	92,370		$	1,338		$	5,374		$	93,347		$	97,744
CAM reimbursement income		16,135			15,972			268			811			16,403			16,783
Real estate tax income		12,293			13,639			16			683			12,309			14,322
Percentage rent		446			415			270			170			716			585
Lease termination revenue		343			1,499			-			40			343			1,539
		121,226			123,895			1,892			7,078			123,118			130,973
Less: credit losses		(145	)		611			50			146			(95	)		757
Lease revenue		121,081			124,506			1,942			7,224			123,023			131,730
Expense reimbursements		8,778			7,831			189			529			8,967			8,360
Other real estate revenue		2,499			2,007			68			156			2,567			2,163
Total real estate revenue		132,358			134,344			2,199			7,909			134,557			142,253
Property operating expenses																	-
CAM and real estate taxes		(49,025	)		(49,115	)		(2,487	)		(4,832	)		(51,512	)		(53,947	)
Utilities		(6,614	)		(6,465	)		(234	)		(624	)		(6,848	)		(7,089	)
Other property operating expenses		(3,975	)		(3,928	)		(330	)		(411	)		(4,305	)		(4,339	)
Total property operating expenses		(59,614	)		(59,508	)		(3,051	)		(5,867	)		(62,665	)		(65,375	)
NOI from consolidated properties(1)		72,744			74,836			(852	)		2,042			71,892			76,878
Less: Lease termination revenue		343			1,499			-			40			343			1,539
NOI from consolidated properties excluding lease termination revenue(1)	$	72,401		$	73,337		$	(852	)	$	2,002		$	71,549		$	75,339
% change in Same Store NOI from consolidated properties excluding lease termination revenue				(1.3%)

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

12

Pennsylvania Real Estate Investment Trust

Reconciliation of Equity in (Loss) Income of Partnerships (GAAP Measure) to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure)

Six Months Ended June 30, 2023 and 2022

(in thousands of dollars)

	Six Months Ended June 30,
	2023			2022
Equity in loss of partnerships	$	(6,682	)	$	(1,583	)
Depreciation and amortization		5,634			5,995
Interest expense and other expenses, net		17,080			11,852
Loss on project costs by equity method investee		323			-
NOI from equity method investments at ownership share(1)	$	16,354		$	16,264

	Same Store						Non Same Store						Total
	2023			2022			2023			2022			2023			2022
Real estate revenue
Base rent	$	16,163		$	15,222		$	17		$	1,115		$	16,180		$	16,337
CAM reimbursement income		3,453			3,779			-			290			3,453			4,069
Real estate tax income		1,981			1,773			-			214			1,981			1,987
Percentage rent		364			659			258			342			622			1,001
Lease termination revenue		223			846			-			9			223			855
		22,184			22,279			275			1,970			22,459			24,249
Less: credit losses		23			204			-			(20	)		23			184
Lease revenue		22,207			22,483			275			1,950			22,482			24,433
Expense reimbursements		2,015			1,153			-			197			2,015			1,350
Other real estate revenue		1,719			1,125			-			35			1,719			1,160
Total real estate revenue		25,941			24,761			275			2,182			26,216			26,943
Property operating expenses
CAM and real estate taxes		(7,389	)		(7,275	)		(64	)		(641	)		(7,453	)		(7,916	)
Utilities		(900	)		(1,036	)		-			(94	)		(900	)		(1,130	)
Other property operating expenses		(1,403	)		(1,348	)		(106	)		(285	)		(1,509	)		(1,633	)
Total property operating expenses		(9,692	)		(9,659	)		(170	)		(1,020	)		(9,862	)		(10,679	)
NOI from equity method investments at ownership share(1)		16,249			15,102			105			1,162			16,354			16,264
Less: Lease termination revenue		223			846			-			9			223			855
NOI from equity method investments at ownership share excluding lease termination revenue(1)	$	16,026		$	14,256		$	105		$	1,153		$	16,131		$	15,409
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				12.4%

13

Pennsylvania Real Estate Investment Trust

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

Three and Six Months Ended June 30, 2023 and 2022

(in thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
FUNDS FROM OPERATIONS (1)
Net loss	$	(45,605	)	$	(11,015	)	$	(91,350	)	$	(43,988	)
Depreciation and amortization on real estate:
Consolidated properties		25,801			28,078			51,975			56,876
PREIT's share of equity method investments		2,789			2,973			5,634			5,995
Gain on sales of interest in real estate		-			(1,701	)		-			(1,701	)
Loss on project costs by equity method investee		35			-			323			-
Gain on sale of equity method investment		-			(9,053	)		-			(9,053	)
Funds from operations attributable to common shareholders and OP Unit holders(1)		(16,980	)		9,282			(33,418	)		8,129
Provision for employee separation expenses		(2	)		(85	)		3			(1	)
Gain on sale of preferred equity interest		-			-			-			(3,688	)
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders	$	(16,982	)	$	9,197		$	(33,415	)	$	4,440

(1) Funds from Operations is a Non-GAAP measures. See definition on pages 34.

FUNDS AVAILABLE FOR DISTRIBUTION(1)
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders(1)	$	(16,982	)	$	9,197		$	(33,415	)	$	4,440
Adjustments:
Straight line rent		334			189			318			498
Recurring capital expenditures		(756	)		(954	)		(1,317	)		(1,767	)
Tenant allowances		(3,560	)		(1,589	)		(8,419	)		(2,578	)
Amortization of non-cash deferred compensation		61			565			274			400
Capitalized leasing costs		(39	)		(72	)		(304	)		(101	)
Amortization of above- and below-market lease intangibles		(333	)		(2	)		(873	)		(6	)
Funds available for distribution to common shareholders and OP Unit holders(1)	$	(21,275	)	$	7,334		$	(43,736	)	$	886
Funds from operations attributable to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	(3.15	)	$	1.72		$	(6.20	)	$	1.51
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit	$	(3.15	)	$	1.71		$	(6.20	)	$	0.83
Funds available for distribution to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	(3.94	)	$	1.36		$	(8.11	)	$	0.16

Weighted average number of shares outstanding	5,325	5,317	5,324	5,311
Weighted average effect of full conversion of OP Units	68	69	68	69
Effect of common share equivalents	-	-	-	-
Total weighted average shares outstanding, including OP Units	5,393	5,386	5,392	5,380

(1) Non-GAAP measures. See definitions on pages 34-35.

14

Pennsylvania Real Estate Investment Trust

Condensed Consolidated Balance Sheets

(Unaudited)

	June 30,			December 31,
(in thousands, except per share amounts)	2023			2022
ASSETS:
INVESTMENTS IN REAL ESTATE, at cost:
Operating properties	$	2,887,673		$	2,894,944
Construction in progress		42,259			42,659
Land held for development		2,058			2,058
Total investments in real estate		2,931,990			2,939,661
Accumulated depreciation		(1,401,515	)		(1,370,065	)
Net investments in real estate		1,530,475			1,569,596
INVESTMENTS IN PARTNERSHIPS, at equity:		7,790			7,845
OTHER ASSETS:
Cash and cash equivalents		22,578			22,937
Tenant and other receivables		31,490			40,459
Intangible assets, net		8,075			8,623
Deferred costs and other assets, net		87,778			91,902
Assets held for sale		34,172			61,767
Total assets	$	1,722,358		$	1,803,129
LIABILITIES:
Mortgage loans payable, net	$	725,947		$	749,396
Term Loans, net		994,148			976,903
Revolving Facility		27,481			22,481
Tenants’ deposits and deferred rent		12,307			13,264
Distributions in excess of partnership investments		100,461			93,136
Accrued expenses and other liabilities		78,205			69,846
Liabilities on assets held for sale		1,774			2,539
Total liabilities		1,940,323			1,927,565
COMMITMENTS AND CONTINGENCIES
EQUITY:
Series B Preferred Shares, $.01 par value per share; 3,450 shares issued and outstanding; liquidation preference of $105,331 and $102,151 at June 30, 2023 and December 31, 2022, respectively		35			35
Series C Preferred Shares, $.01 par value per share; 6,900 shares issued and outstanding; liquidation preference of $209,760 and $203,550 at June 30, 2023 and December 31, 2022, respectively		69			69
Series D Preferred Shares, $.01 par value per share; 5,000 shares issued and outstanding; liquidation preference of $150,782 and $146,485 at June 30, 2023 and December 31, 2022, respectively		50			50
Shares of beneficial interest, $1.00 par value per share; 13,333 shares authorized; 5,341 and 5,356 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively		5,341			5,356
Capital contributed in excess of par		1,858,912			1,858,675
Accumulated other comprehensive income		911			3,282
Distributions in excess of net income		(2,070,730	)		(1,980,693	)
Total equity (deficit) —Pennsylvania Real Estate Investment Trust		(205,412	)		(113,226	)
Noncontrolling interest		(12,553	)		(11,210	)
Total equity (deficit)		(217,965	)		(124,436	)
Total liabilities and equity	$	1,722,358		$	1,803,129

15

Pennsylvania Real Estate Investment Trust

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

(in thousands)

	June 30,			December 31,
	2023			2022
ASSETS:
Investments in real estate, at cost:
Operating properties	$	379,333		$	378,585
Construction in progress		6,997			5,095
Total investments in real estate		386,330			383,680
Accumulated depreciation		(127,799	)		(123,223	)
Net investments in real estate		258,531			260,457
Cash and cash equivalents		19,943			14,008
Deferred costs and other assets, net		71,908			71,350
Total assets		350,382			345,815
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		197,305			199,349
FDP Term Loan, net		37,910			52,214
Partnership Loans		124,608			107,004
Other liabilities		83,230			72,539
Total liabilities		443,053			431,106
Net investment	$	(92,671	)	$	(85,291	)
Reconciliation to comparable GAAP balance sheet item:
Investment in partnerships, at equity	$	7,790		$	7,845
Distributions in excess of partnership investments		(100,461	)		(93,136	)
Net investments and advances	$	(92,671	)	$	(85,291	)

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 40% 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.

16

Pennsylvania Real Estate Investment Trust

Leasing Activity Summary – Three Months Ended June 30, 2023

		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		24		60,070		5.7	$	39.70	N/A		N/A			N/A			N/A			$	9.82
	Unconsolidated(4)		2		13,547		15.8		42.25	N/A		N/A			N/A			N/A				8.40
Total Under 10k sf			26		73,617		7.5	$	40.17	N/A		N/A			N/A			N/A			$	9.27
Over 10k sf	Consolidated		2		36,926		8.4		7.31	N/A		N/A			N/A			N/A				1.44
	Unconsolidated(4)		2		28,676		10.0		49.27	N/A		N/A			N/A			N/A				2.90
Total Over 10k sf			4		65,602		9.1		25.65	N/A		N/A			N/A			N/A				2.14
Total New Leases			30		139,219		8.3	$	33.33	N/A		N/A			N/A			N/A			$	5.57
Renewal Leases
Under 10k sf	Consolidated		30		97,488		3.3	$	51.38	$	49.49	$	1.89			3.8	%		4.7	%	$	-
	Unconsolidated(4)		7		25,843		4.8	$	57.51	$	54.91		2.60			4.7	%		8.2	%		-
Total Under 10k sf			37		123,331		3.6	$	52.67	$	50.63	$	2.04			4.0	%		5.5	%	$	-
Over 10k	Consolidated		10		289,680		4.6		19.15		18.54		0.61			3.3	%		3.7	%	$	-
													-									-
Total Over 10k sf			10		289,680		4.6		19.15		18.54		0.61			3.3	%		3.7	%	$	-
Total Fixed Rent			47		413,011		4.3	$	29.16	$	28.12	$	1.04			3.7	%		4.7	%	$	-
Percentage in Lieu	Consolidated		12		129,416		2.2	$	19.85	$	21.70	$	(1.85	)		(8.5	%)	N/A			$	0.36
	Unconsolidated(4)
Total Percentage in Lieu			12		129,416		2.2	$	19.85		21.70		(1.85	)		(8.5	%)	N/A				0.36
Total Renewal Leases			59		542,427		3.8	$	26.94	$	26.59	$	0.35			1.3	%				$	0.05
Total Non Anchor			89		681,646		4.7	$	28.24
Anchor
New Leases	Consolidated
Renewal Leases	Consolidated		2		218,332		4.6	$	4.77	$	4.48	$	0.29			6.6	%	N/A			$	-
Total			2		218,332		4.6	$	4.77	$	4.48	$	0.29			6.6	%	N/A			$	-

(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 40% 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 June 30, 2023 for further details on our ownership interests in our unconsolidated properties. Our unconsolidated properties include 11 leases and 68,066 square feet of GLA with respect to our unconsolidated partnerships.

17

Pennsylvania Real Estate Investment Trust

Leasing Activity Summary – Six Months Ended June 30, 2023

		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		48		106,776		5.2	$	45.67	N/A		N/A			N/A			N/A			$	9.40
	Unconsolidated(4)		6		22,439		13.2		55.66	N/A		N/A			N/A			N/A				8.53
Total Under 10k sf			54		129,215		6.6	$	47.41	N/A		N/A			N/A			N/A			$	9.10
Over 10k sf	Consolidated		3		66,835		9.1		15.67	N/A		N/A			N/A			N/A				3.78
	Unconsolidated(4)		2		28,676		10.0		49.27	N/A		N/A			N/A			N/A				2.90
Total Over 10k sf			5		95,511		9.4		25.76	N/A		N/A			N/A			N/A				3.50
Total New Leases			59		224,726		7.8	$	38.21	N/A		N/A			N/A			N/A			$	6.23
Renewal Leases
Under 10k sf	Consolidated		66		182,635		3.4	$	56.09	$	55.35	$	0.74			1.3	%		3.3	%	$	-
	Unconsolidated(4)		19		68,580		3.3	$	51.66	$	48.94		2.72			5.6	%		8.9	%		0.56
Total Under 10k sf			85		251,215		3.3	$	54.88	$	53.60	$	1.28			2.4	%		4.8	%	$	0.15
Over 10k sf	Consolidated		17		400,958		4.7		23.34		22.27	$	1.07			4.8	%		5.6	%		-
	Unconsolidated(4)
Total Over 10k sf			17		400,958		4.7		23.34		22.27		1.07			4.8	%		5.6	%	$	-
Total Fixed Rent			102		652,173		4.2	$	35.49	$	34.34	$	1.15			3.4	%		5.1	%	$	0.05
Percentage in Lieu	Consolidated		39		205,997		2.3		24.95		26.01	$	(1.06	)		(4.1	%)					0.41
	Unconsolidated(4)		1		13,011		3.0		18.06		23.01		(4.95	)		(21.5	%)					-
Total Percentage in Lieu			40		219,008		2.4	$	24.54	$	25.83	$	(1.29	)		(5.0	%)				$	0.38
Total Renewal Leases (4)			142		871,181		3.7	$	32.74	$	32.20	$	0.54			1.7	%				$	0.10
Total Non Anchor			201		1,095,907		4.5	$	33.86
Anchor
New Leases
Renewal Leases	Consolidated		3		336,125		3.4		3.82		3.63		0.19			5.3	%	N/A				-
Total			3		336,125		3.4	$	3.82

(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 40% 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 June 30, 2023 for further details on our ownership interests in our unconsolidated properties. Our unconsolidated properties include 28 leases and 132,706 square feet of GLA with respect to our unconsolidated partnerships.

18

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages

	June 30, 2023																							June 30, 2022
									Actual Occupancy						Leased Occupancy														Actual Occupancy
	% Rolling 12 Mo. NOI (3)			Average Comp Sales		Average Gross Rent(1)(2)		Occupancy Cost	Total			Non- Anchor			Total			Non- Anchor			% Rolling 12 Mo. NOI			Average Comp Sales		Average Gross Rent(1)(2)		Occupancy Cost	Total			Non- Anchor
Malls		94.8	%	$	592	$	56.46	11.1%		94.2	%		91.2	%		95.0	%		92.4	%		91.4	%	$	605	$	56.66	10.8%		93.8	%		90.5	%
Non-Core Malls		-0.3	%	$	339	$	31.48	8.2%		71.4	%		53.5	%		71.4	%		53.5	%		0.4	%	$	305	$	35.37	12.2%		51.8	%		49.6	%
Malls Total		94.5	%	$	590	$	56.20	11.1%		92.8	%		89.5	%		93.5	%		90.7	%		91.8	%	$	601	$	56.36	10.8%		91.1	%		88.7	%
Other Retail Properties		4.7	%	n/a		$	18.25	n/a		99.4	%		99.3	%		100.0	%		100.0	%		5.5	%	n/a		$	18.99	n/a		98.0	%		97.8	%
Total Retail Properties		4.7	%	$	590	$	48.06	11.1%		93.3	%		90.7	%		94.1	%		91.8	%		5.5	%	$	601	$	47.59	10.8%		91.7	%		89.7	%
Sold Properties		1.2	%	n/a				n/a														3.0	%		440	$	35.82	9.3%		94.0	%		90.3	%
Other Properties		-0.4	%	n/a				n/a														-0.3	%	n/a		n/a		n/a
Total Portfolio		100.0	%	$	590	$	48.06	11.1%		93.3	%		90.7	%		94.1	%		91.8	%		100.0	%	$	601	$	47.26	10.8%		91.8	%		89.8	%

(1) 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.

(2) Average gross rent for mall tenants greater than 10,000 sf was $22.15 per square foot as of June 30, 2023 and $21.79 per square foot as of June 30, 2022.

(3) NOI is a non-GAAP measure. See definition of NOI on page 34.

19

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot

	June 30, 2023											June 30, 2022								Change
	% of Mall NOI (1)			Avg Comp Sales (1)		Total Occupancy %			Non- Anchor Occupancy %			Avg Comp Sales		Total Occupancy %			Non-Anchor Occupancy %			Avg Comp Sales			Total Occupancy %			Non- Anchor Occupancy %
Top 6 Malls
Cherry Hill Mall		13.2	%	$	922		95.4	%		94.5	%	$	929		96.2	%		95.5	%		(0.8	%)		(0.8	%)		(1.0	%)
Willow Grove Park		6.0	%		815		96.1	%		92.9	%		771		96.9	%		94.6	%		5.7	%		(0.8	%)		(1.7	%)
Lehigh Valley Mall		6.3	%	653			85.9	%		77.2	%	685			88.9	%		82.1	%		(4.7	%)		(3.0	%)		(4.9	%)
Woodland Mall		6.8	%	646			97.0	%		96.5	%	657			97.5	%		97.0	%		(1.7	%)		(0.5	%)		(0.5	%)
Dartmouth Mall		4.8	%		590		97.3	%		96.1	%		593		93.1	%		90.2	%		(0.5	%)		4.2	%		5.9	%
Springfield Town Center		10.8	%	560			92.8	%		90.3	%	574			89.6	%		86.1	%		(2.4	%)		3.2	%		4.2	%
		47.9	%	$	710		93.2	%		90.5	%	$	719		93.1	%		90.4	%		-1.3	%		0.1	%		0.1	%
Malls 7-12
Mall at Prince Georges		7.9	%	$	540		97.5	%		95.8	%	$	589		98.8	%		98.1	%		(8.3	%)		(1.3	%)		(2.3	%)
Capital City Mall		5.8	%		524		98.9	%		98.3	%		542		97.9	%		96.9	%		(3.3	%)		1.0	%		1.4	%
Jacksonville Mall		4.1	%		505		99.6	%		99.2	%		533		99.2	%		98.4	%		(5.3	%)		0.4	%		0.8	%
Viewmont Mall		4.2	%		498		99.7	%		99.3	%		528		98.8	%		97.5	%		(5.7	%)		0.9	%		1.8	%
Patrick Henry Mall		5.2	%		476		96.8	%		95.4	%		519		94.6	%		92.2	%		(8.3	%)		2.2	%		3.2	%
Valley Mall		5.0	%		469		99.2	%		98.2	%		501		98.6	%		96.8	%		(6.4	%)		0.6	%		1.4	%
		32.2	%	$	502		98.6	%		97.5	%	$	537		98.2	%		96.7	%		-6.5	%		0.4	%		0.8	%
Malls 13-19
Magnolia Mall		3.0	%	$	464		98.5	%		97.4	%	$	509		99.1	%		98.5	%		(8.8	%)		(0.6	%)		(1.1	%)
Moorestown Mall		2.7	%		464		96.2	%		93.3	%		453		97.6	%		95.8	%		2.4	%		(1.4	%)		(2.5	%)
Plymouth Meeting Mall		3.8	%		447		89.8	%		86.1	%		387		85.2	%		78.2	%		15.5	%		4.6	%		7.9	%
Francis Scott Key Mall		3.9	%		409		97.3	%		95.8	%		431		94.9	%		92.0	%		(5.1	%)		2.4	%		3.8	%
Springfield Mall		1.6	%		382		92.8	%		92.8	%		459		91.0	%		91.0	%		(16.8	%)		1.8	%		1.8	%
Fashion District Philadelphia		4.1	%	n/a			78.5	%		72.7	%	n/a			80.4	%		75.2	%	n/a				(1.9	%)		(2.5	%)
		19.1	%	$	430		91.2	%		87.2	%	$	449		90.4	%		85.9	%		-4.2	%		0.8	%		1.3	%
All Core Malls		99.2	%	$	592		94.2	%		91.2	%	$	605		93.8	%		90.5	%		-2.1	%		0.4	%		0.7	%
Non-Core Malls
Exton Square Mall		-0.3	%	339			71.4	%		53.5	%		305		51.8	%		49.6	%	11.1%				19.6	%		3.9	%
All Non-Core Malls		-0.3	%	$	339		71.4	%		53.5	%	$	305		51.8	%		49.6	%	11.1%				19.6	%		3.9	%
Sold Malls
Cumberland Mall		1.1	%	n/a		n/a			n/a				440		94.0	%		90.3	%	n/a			n/a			n/a
Sold Malls		1.1	%			n/a			n/a			$	440		94.0	%		90.3	%
All Malls		100.0	%	$	590		92.8	%		89.5	%	$	601		91.3	%		88.8	%	-1.8%				1.5	%		0.7	%

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

20

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants

June 30, 2023

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	28		6		34		4.0	%
Signet Jewelers Limited	Kay Jewelers, Piercing Pagoda, Piercing Pagoda Plus, Zales Jewelers, Banter by Piercing Pagoda	42		8		50		3.2	%
American Eagle Outfitters, Inc.	Aerie, American Eagle Outfitters, Offline	15		4		19		2.9	%
Victoria's Secret & Co.	Victoria's Secret, Pink	13		3		16		2.7	%
Dick's Sporting Goods, Inc.	Dick's Sporting Goods, Field & Stream	9		1		10		2.7	%
JD Sports Fashion PLC	DTLR, Finish Line, JD Sports, Villa	13			2	15		2.0	%
Sycamore Partners	Hot Topic, Talbots, Torrid, AnnTaylor, Loft, Belk	34		7		41		1.9	%
Dave & Buster's, Inc.	Dave & Buster's	3		1		4		1.9	%
Macy's	Bloomingdale's, Macy's	12		2		14		1.9	%
Express, Inc	Express, Express Factory Outlet, Express Men	10		3		13		1.8	%
Authentic Brands Group LLC	Aeropostale, Forever 21, Lucky Brand Jeans	18		5		23		1.7	%
Genesco Inc.	Johnston & Murphy, Journeys, Journeys Kidz, Underground by Journeys	21		5		26		1.7	%
H&M Hennes & Mauritz L.P.	H & M	13		1		14		1.5	%
Bath & Body Works, Inc.	Bath & Body Works	16			3	19		1.4	%
Gap, Inc.	Banana Republic, Gap/Gap Kids, Old Navy	7		5		12		1.4	%
AMC Entertainment Holdings, Inc.	AMC	3		1		4		1.3	%
Darden Concepts, Inc.	Bahama Breeze, Capital Grille, Olive Garden, Seasons 52, Yard House	7			-	7		1.3	%
Shoe Show, Inc.	Shoe Department, Shoe Dept. Encore	12		2		14		1.1	%
Luxottica Group S.p.A.	Lenscrafters, Pearle Vision, Sunglass Hut	17			6	23		1.1	%
Copper Retail JV LLC	JC Penney	10			1	11		1.0	%
Total Top 20 Tenants		303		66		369		38.5	%
Total Leases			1,307	288		1595		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 June 30, 2023.

21

Pennsylvania Real Estate Investment Trust

Lease Expirations as of June 30, 2023

(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
2023 and Prior		181		486,181		6.2	%		28,272		23,674		8.6	%		58.15
2024		294		900,037		11.5	%		41,611		36,571		13.3	%		46.23
2025		280		1,256,444		16.0	%		67,956		54,405		19.8	%		54.09
2026		181		863,347		11.0	%		34,205		30,875		11.2	%		39.62
2027		147		815,391		10.4	%		31,832		29,000		10.5	%		39.04
2028		131		959,846		12.2	%		34,947		32,095		11.7	%		36.41
2029		85		651,427		8.3	%		26,829		22,686		8.2	%		41.18
2030		67		534,483		6.8	%		18,705		15,944		5.8	%		35.00
2031		40		462,031		5.9	%		13,550		11,664		4.2	%		29.33
2032		34		251,827		3.2	%		9,062		6,870		2.5	%		35.98
Thereafter		43		666,295		8.5	%		14,498		11,668		4.2	%		21.76
Total/Average		1,483		7,847,309		100.0	%	$	321,467	$	275,452		100.0	%	$	40.97

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
2023 and prior		3		497,894		11.1	%		1,046		691		3.1	%		2.10
2024
2025		8		929,729		20.7	%		2,044		2,044		9.2	%		2.20
2026		5		352,845		7.9	%		3,692		2,416		10.9	%		10.46
2027		3		315,582		7.1	%		2,732		2,732		12.4	%		8.66
2028		11		1,295,984		29.0	%		7,183		7,183		32.6	%		5.54
2029		2		313,186		7.0	%		1,113		1,113		5.0	%		3.55
2030		2		85,718		1.9	%		1,522		1,522		6.9	%		17.75
2031		2		166,523		3.7	%		932		932		4.2	%		5.60
2032		1		85,162		1.9	%		340		340		1.5	%		3.99
Thereafter		4		433,408		9.7	%		3,148		3,148		14.2	%		7.26
Total/Average		41		4,476,031		100.0	%	$	23,752	$	22,121		100.0	%	$	5.31

(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.

22

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2023

		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		178,961		5,758		624,329
		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		243,628		411,729		38,436		1,310,678
						Macy's		304,600
Dartmouth Mall	Dartmouth, MA	JCPenney	2025		100,020	Macy's		140,000		95,387		148,140		13,512		632,513
		Burlington	2030		43,835
		AMC Theaters	2026							44,988
		Aldi	2031							24,063
		WOW Dartmouth	2033							22,568
Fashion District Philadelphia	Philadelphia, PA	Burlington	2032		85,162					153,512		123,394		183,065		850,851
		AMC	2034							36,535
		Round 1	2029							58,080
		City Winery	2025							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		139,863		180,825		16,299		748,646
		Sears (3)	2028		120,883
		Dick's Sporting Goods	2025							50,150
Jacksonville Mall	Jacksonville, NC	Belk	2026		72,510					123,079		125,585		2,078		492,857
		JCPenney	2025		51,812
		Sears (3)	2028		117,793
Lehigh Valley Mall	Allentown, PA	Boscov's	2023		164,694	JCPenney		207,292		185,631		290,724		140,306		1,200,647
		Macy's	2023		212,000
Magnolia Mall	Florence, SC	Belk	2028		115,793					96,175		133,341		8,601		580,760
		Best Buy	2028		32,054
		Tilt Studio	2031		104,107
		Dick's Sporting Goods	2026							45,000
		Burlington	2028							45,689
Moorestown Mall	Moorestown, NJ	Boscov's	2028		202,765	Cooper Hospital (2)		182,153		110,814		195,404		28,068		926,733
		Regal Cinemas	2031							57,843
		HomeSense	2028		28,486
		Turn 7 Liquidations	2023		121,200

23

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2023 (continued)

		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
Patrick Henry Mall	Newport News, VA	Dick's Sporting Goods	2027		50,250	Dillard's		144,157		60,095		224,517		13,690		717,921
		JCPenney	2025		85,212	Macy's		140,000
Plymouth Meeting Mall	Plymouth Meeting, PA	Boscov's	2028		188,429	Whole Foods		65,155		190,519		206,454		86,595		917,844
		Burlington	2030		41,883
		Dick's Sporting Goods	2031							57,588
		AMC Theaters	2027							48,000
		LEGOLAND Discovery Center	2032							33,221
Springfield Mall	Springfield, PA					Macy's		192,000		20,577		186,087		16,088		610,651
						Target		195,899
Springfield Town Center	Springfield, VA	Macy's	2035		252,245	JCPenney		209,144		204,654		322,473		71,187		1,377,330
						Target		180,841
		Dick's Sporting Goods	2025							53,891
		Nordstrom Rack	2025							33,107
		Regal Cinemas	2031							49,788
The Mall at Prince George's	Hyattsville, MD	Macy's	2028		195,655					268,818		225,082		21,467		846,208
		Target	2029		135,186
Valley Mall	Hagerstown, MD	JCPenney	2025		157,455					95,023		213,525		6,570		828,983
		Belk	2028		123,094
		Regal Cinemas	2028							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		76,053		165,966		1,768		689,277
		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		103,217		253,722		25,405		1,060,797
		Nordstrom Rack	2027		40,332	Sears(1)(3)		175,584
Woodland Mall	Grand Rapids, MI	Von Maur	2119		86,165	JCPenney		254,905		115,714		304,338		16,912		982,272
						Macy's		157,316
		Phoenix Theatres	2037							46,922
Total Core Malls					4,116,343			3,360,002		3,336,880		3,890,267		695,805		15,399,297

24

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2023 (continued)

		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
Other Malls and Retail Properties
Exton Square Mall	Exton, PA	Boscov's	2029		178,000	Macy's		181,200		202,570		138,891		231,113		990,145
		Round 1	2026		58,371
Metroplex Shopping Center	Plymouth Meeting, PA	Giant Food Store	2026		67,185	Lowe's		163,215		328,809		49,012		7,280		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		279,410		54,141		-		703,909
						The Home Depot		130,751
		Dick's Sporting Goods	2036							63,115
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		1,146,670		257,251		238,393		2,934,632
Total Portfolio					4,479,519			4,289,144		4,483,550		4,147,518		934,198		18,333,929

(1) Approximately 78,000 square feet of this space has been subleased to Primark.

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

(3) Store not operating, but tenant still financially obligated to landlord.

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Pennsylvania Real Estate Investment Trust

Investment in Real Estate - Consolidated Properties

(in thousands)

	June 30, 2023
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation			Net Real Estate		Debt(1)
Core Malls
Capital City Mall	$	138,645	$	-	$	(68,400	)	$	70,245	$	-
Cherry Hill Mall		476,317		-		(298,281	)		178,036		228,738
Dartmouth Mall		90,870		148		(54,095	)		36,923		53,024
Francis Scott Key Mall		96,727		-		(52,348	)		44,379		50,889
Jacksonville Mall		93,267		-		(49,008	)		44,259		-
Magnolia Mall		106,324		-		(59,737	)		46,587		-
Moorestown Mall		175,784		-		(91,517	)		84,267		-
Patrick Henry Mall		158,272		-		(87,462	)		70,810		82,023
Plymouth Meeting Mall		129,855		-		(80,083	)		49,772		-
The Mall at Prince George's		137,578		82		(81,737	)		55,923		-
Springfield Town Center		499,968		2,809		(113,418	)		389,359		-
Valley Mall		148,897		1,229		(65,462	)		84,664		-
Viewmont Mall		122,204		-		(65,594	)		56,610		67,185
Willow Grove Park		233,200		37,798		(129,577	)		141,421		143,239
Woodland Mall		279,764		193		(104,796	)		175,161		101,798
Total Core Malls		2,887,672		42,259		(1,401,515	)		1,528,416		726,896
Total Malls	$	2,887,672	$	42,259	$	(1,401,515	)	$	1,528,416	$	726,896
Other Properties
Land held for development		2,058		-		-			2,058		-
Total Investment in Real Estate	$	2,889,730	$	42,259	$	(1,401,515	)	$	1,530,474	$	726,896
Assets Held For Sale
Exton Mall		27,810		-		-			27,810		-
Mall at Prince George's		4,861		-		-			4,861		-
Moorestown		447		-		-			447		-
Woodland Mall		1,054		-		-			1,054		-
Total held for sale	$	34,172	$	-	$	-		$	34,172	$	-

(1)Refer to page 29-32 for further debt information regarding consolidated properties.

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Pennsylvania Real Estate Investment Trust

Investment in Real Estate – Equity Method Investments at Ownership Share

(in thousands)

	June 30, 2023
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation			Net Real Estate		Debt(1)
Unconsolidated Malls
Fashion District Philadelphia	$	167,090	$	982	$	(11,911	)	$	156,161	$	162,518
Lehigh Valley Mall		57,578		2,356		(34,124	)		25,810		89,630
Springfield Mall		58,749		60		(29,287	)		29,522		27,955
Total Unconsolidated Malls	$	283,417	$	3,398	$	(75,322	)	$	211,493	$	280,103
Unconsolidated Other Retail Properties
Metroplex Shopping Center		46,561		2,781		(29,193	)		20,149		33,786
The Court at Oxford Valley		28,411		-		(14,536	)		13,875		27,500
Red Rose Commons		14,598		-		(6,320	)		8,278		16,357
Total Unconsolidated Other Retail Properties	$	89,570	$	2,781	$	(50,049	)	$	42,302	$	77,643
Unconsolidated Property Under Development
Pavilion at Market East		6,345		819		(2,428	)		4,736		3,108
Total Investment in Real Estate	$	379,332	$	6,998	$	(127,799	)	$	258,531	$	360,854

(1)Refer to pages 29-32 for further debt information regarding equity method investments at ownership share.

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Pennsylvania Real Estate Investment Trust

Capital Expenditures

Three and Six Months Ended June 30, 2023

(in thousands)

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	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)	$	405	$	1,888	$	2,293	$	1,622	$	2,057	$	3,679
Tenant allowances		3,439		121		3,560		7,982		437		8,419
Recurring capital expenditures:
CAM expenditures		594		130		724		1,130		155		1,285
Non-CAM expenditures		32		-		32		32		-		32
Total recurring capital expenditures		626		130		756		1,162		155		1,317
Total	$	4,470	$	2,139	$	6,609	$	10,766	$	2,649	$	13,415

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

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Pennsylvania Real Estate Investment Trust

Debt Analysis as of June 30, 2023

(in thousands)

	Outstanding Debt
	Fixed Rate (1)			% of Total Indebtedness			Variable Rate			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable (2)	$	607,024			28.8	%	$	119,872			5.7	%	$	726,896			34.4	%
Unconsolidated mortgage loans payable (3)		198,335			9.4	%		-			0.0	%		198,335			9.3	%
Consolidated Term Loans (4)		-			0.0	%		995,583			47.2	%		995,583			47.2	%
Unconsolidated Term Loans (5)		124,608			5.8	%		37,910			1.8	%		162,518			7.7	%
2020 Revolving Facility		-			0.0	%		27,481			1.3	%		27,481			1.4	%
Total Outstanding Debt	$	929,967			44.0	%	$	1,180,846			56.0	%	$	2,110,813			100.0	%
Average Stated Interest Rate		6.54	%					11.90	%					9.54	%

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

(2) Excludes deferred financing costs of $949.

(3) Reflects our share of mortgage debt of equity method investees. Excludes our share of deferred financing costs of $915.

(4) Excludes deferred financing costs of $1,435.

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

		Average Debt Balance
		Mortgage Debt			Revolving Facility		Term Loans			Total
Beginning Balance	4/1/2023	$	941,243		$	22,481	$	1,135,977		$	2,099,701
Mortgage loan amortization and repayments, including our share of debt of equity method investees			(16,012	)		-		-			(16,012	)
First Lien Revolver Borrowing			-			5,000		-			5,000
2018 FDP Term Loan Paydown			-			-		(1,250	)		(1,250	)
2020 and 2022 FDP Partnership Loan Borrowing			-			-		1,156			1,156
Second Lien Term Loan PIK Interest			-			-		22,218			22,218
Ending Balance	6/30/2023	$	925,231		$	27,481	$	1,158,101		$	2,110,813
Weighted Average Balance		$	936,484		$	26,052	$	1,143,279		$	2,105,815

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Pennsylvania Real Estate Investment Trust

Debt Analysis as of June 30, 2023 (continued)

(in thousands)

Debt Maturities(1)
Year	Scheduled Amortization		Deferred Financing Cost Amortization - Mortgages			Mortgage Balance at Initial Maturity Date		2020 Revolving Facility		Term Loans		Deferred Financing Cost Amortization - Term Loans			Total Debt
2023 (2) (3)	$	7,054	$	(668	)	$	414,969	$	27,481	$	995,583	$	(1,435	)	$	1,442,984
2024		10,242		(455	)		118,074		-		37,910		-			165,771
2025		9,031		(223	)		240,752		-		-		-			249,560
2026		4,162		(125	)		-		-		-		-			4,037
2027		3,859		(117	)		79,789		-		100,000		-			183,531
Thereafter		5,773		(276	)		31,526		-		24,608		-			61,631
	$	40,121	$	(1,864	)	$	885,110	$	27,481	$	1,158,101	$	(1,435	)	$	2,107,514

(1) The weighted average period to total debt maturity is 1.22 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.

(2) Includes Cherry Hill Mall mortgage for which the maturity date was extended through December 1, 2023.

(3) Includes Woodland Mall mortgage for which the maturity date was extended through October 5, 2023.

Weighted Average Mortgage Interest Rates
Year	Balance (1)		Interest Rate
2023 (2) (3)	$	417,344		7.66	%
2024		118,074		7.45	%
2025		256,325		4.11	%
2026		-		0.00	%
2027		89,630		4.06	%
Thereafter		43,858		3.23	%
Total	$	925,231		6.09	%

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

(2) Includes Cherry Hill Mall mortgage for which the maturity date was extended through December 1, 2023.

(3) Includes Woodland Mall mortgage for which the maturity date was extended through October 5, 2023.

30

31

Pennsylvania Real Estate Investment Trust

Debt Schedule as of June 30, 2023

(in thousands)

	Debt			Interest Rate			Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Fixed Rate Mortgage Loans
Dartmouth Mall	$	53,024			7.97	%	$	4,226	$	53,024	June 2023	June 2023
Metroplex Shopping Center (1)		33,786			5.00	%		2,818		33,502	October 2023	October 2023
Cherry Hill Mall (2)		228,737			7.50	%		17,155		227,695	December 2023	May 2024
Francis Scott Key Mall		40,000			7.19	%		2,876		40,000	June 2024	June 2025
Viewmont Mall		60,000			7.19	%		4,314		60,000	June 2024	June 2025
Patrick Henry Mall		82,023			4.35	%		5,748		77,591	July 2025	July 2025
Pavilion East Associates (1)		3,108			5.50	%		271		3,108	October 2025	October 2027
Springfield Mall (1)		27,955			4.45	%		1,964		26,299	October 2025	October 2025
Willow Grove Park		143,240			3.88	%		9,599		133,754	October 2025	October 2025
Lehigh Valley Mall (1)		89,630			4.06	%		5,768		79,789	November 2027	November 2027
Red Rose Commons (1)		16,356			3.28	%		978		13,183	July 2031	July 2031
The Court at Oxford Valley (1)		27,500			3.20	%		2,058		18,343	July 2031	July 2031
Total Fixed Rate Mortgage Loans	$	805,359			5.69	%	$	57,775	$	766,287
Variable Rate Mortgage Loans
Woodland Mall (3)	$	101,798			8.75	%	$	13,107	$	100,748	October 2023	October 2023
Francis Scott Key Mall		10,889			8.87	%		966		10,889	June 2024	June 2025
Viewmont Mall		7,185			8.87	%		638		7,185	June 2024	June 2025
Total Variable Rate Mortgage Loans	$	119,872			8.77	%	$	14,711	$	118,822
Total Mortgage Loans	$	925,231			6.09	%	$	72,486	$	885,109
Consolidated Mortgage Loans	$	726,896			6.63	%	$	58,629	$	710,886
Consolidated Deferred Financing Fees		(949	)	N/A			N/A		N/A
Unconsolidated Mortgage Loans		198,335			4.11	%		13,857		174,223
Unconsolidated Deferred Financing Fees		(915	)	N/A			N/A		N/A
First Lien Term Loan (4)		305,739			10.90	%		33,335		305,739	December 2023	December 2023
Second Lien Term Loan		689,844			13.19	%		91,013		689,844	December 2023	December 2023
2018 FDP Term Loan		37,910			8.76	%		3,321		37,910	January 2024	January 2024
Term Loan Deferred Financing Fees		(1,435	)	N/A			N/A		N/A
First Lien Revolver		27,481			8.66	%		2,381		27,481	December 2023	December 2023
2020 FDP Partnership Loan		100,000			15.00	%		15,000		100,000	December 2027	December 2027
2022 FDP Partnership Loan		24,608			15.00	%		3,691		24,608	August 2029	August 2029
Total	$	2,107,514			9.54	%	$	221,227	$	2,070,691
Amortization of Deferred Financing Fees	—				-0.02	%	—		—
Effective Interest Rate	$	2,107,514			9.56	%	$	221,227	$	2,070,691

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

(2) Cherry Hill Mall mortgage for which the maturity date was extended through December 1, 2023.

(3) Includes Woodland Mall mortgage for which the maturity date was extended through October 5, 2023.

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

32

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios

	June 30, 2023
Debt Yield Ratio (1)
Maintain a minimum Debt Yield Ratio (Senior) of 11.35% from and after June 30, 2021	21.92%
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	8.54%
Liquidity (1)
Maintain minimum liquidity of at least $25.0 million, to be comprised of unrestricted cash held in certain deposit accounts subject to control agreements	$	110.7

(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 June 30, 2023, 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, including additional covenants that came into effect starting on December 31, 2021.

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Pennsylvania Real Estate Investment Trust

Forward Looking Statements

FORWARD LOOKING STATEMENTS

This Quarterly Supplemental and Operating Information for the quarter ended June 30, 2023 contains 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 prior financial restructuring and the ongoing and future strategies that we may employ to address our liquidity and capital resources;

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

•our substantial debt, and our ability to satisfy our obligations or extend the maturity of or refinance our outstanding debt at or prior to maturity, particularly in light of increasing interest rates, and our ability to remain in compliance with our financial covenants under our debt facilities;

•the COVID-19 global pandemic and the public health and governmental response, which have created periods of significant economic disruption and also 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;

•changes in economic conditions, including unemployment rates and its effects on consumer confidence and spending, supply chain disruptions, the inflationary environment, the potential for economic slowdown or recession 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 sell properties that we seek to dispose of, which may be delayed or prevented by, among other things, the failure to obtain zoning, occupancy and other governmental approvals and permits or, to the extent required, approvals of other third parties;

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

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

•increases in operating costs that cannot be passed on to tenants, which may be exacerbated in the current inflationary environment;

•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; 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 the section entitled "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2022 and any subsequent quarterly reports on Form 10Q and other reports we file with the SEC. We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

34

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 have used it 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 six months ended June 30, 2023 and 2022, respectively, to show the effect of such items as provision for employee separation expense, gain on sale of preferred equity interest, depreciation and amortization on real estate at PREIT’s consolidated properties, PREIT’s share of depreciation and amortization of equity method investments and loss on project costs by equity method investee, 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 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, and gain on sale of preferred equity interest.

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, other expenses (which includes provision for employee separation expense and project costs), interest expense, net, equity in loss of partnerships, gain/loss on project costs by equity method investee, and gain on sale of preferred equity interest.

35

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) capitalized leasing costs, (5) non-cash compensation charges, 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.

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Document and Entity Information	Aug. 03, 2023
Document And Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Aug. 03, 2023
Entity Registrant Name	Pennsylvania Real Estate Investment Trust
Entity Incorporation, State or Country Code	PA
Entity File Number	001-6300
Entity Tax Identification Number	23-6216339
Entity Address, Address Line One	One Commerce Square
Entity Address, Address Line Two	2005 Market Street
Entity Address, Address Line Three	Suite 1000
Entity Address, City or Town	Philadelphia
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19103
City Area Code	215
Local Phone Number	875-0700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0000077281
Amendment Flag	false
Shares Of Beneficial Interest Par Value 1.00 Per Share [Member]
Document And Entity Information [Line Items]
Title of 12(b) Security	Shares of Beneficial Interest, par value $1.00 per share
Trading Symbol	PRET
Security Exchange Name	NONE
Series B Preferred Stock [Member]
Document And Entity Information [Line Items]
Title of 12(b) Security	Series B Preferred Shares, par value $0.01 per share
Trading Symbol	PRETL
Security Exchange Name	NONE
Series C Preferred Stock [Member]
Document And Entity Information [Line Items]
Title of 12(b) Security	Series C Preferred Shares, par value $0.01 per share
Trading Symbol	PRETM
Security Exchange Name	NONE
Series D Preferred Stock [Member]
Document And Entity Information [Line Items]
Title of 12(b) Security	Series D Preferred Shares, par value $0.01 per share
Trading Symbol	PRETN
Security Exchange Name	NONE