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) July 28, 2011
Pennsylvania Real Estate Investment Trust
(Exact Name of Registrant as Specified in its Charter)
Pennsylvania | 1-6300 | 23-6216339 | ||
(State or Other Jurisdiction of Incorporation or Organization) |
(Commission File Number) |
(IRS Employer Identification No.) |
The Bellevue, 200 S. Broad Street, Philadelphia, Pennsylvania |
19102 | |||
(Address of Principal Executive Offices) | (Zip Code) |
Registrants telephone number, including area code: (215) 875-0700
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On July 28, 2011, Pennsylvania Real Estate Investment Trust provided on its web site at www.preit.com its Quarterly Supplemental Disclosure dated June 30, 2011. 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.
(d) | Exhibits |
99.1 | Quarterly Supplemental Disclosure dated June 30, 2011. |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST | ||||||
Date: August 2, 2011 | By: | /s/ Bruce Goldman | ||||
Bruce Goldman | ||||||
Executive Vice President and General Counsel |
Exhibit Index
99.1 | Quarterly Supplemental Disclosure dated June 30, 2011 |
- 2 -
Exhibit 99.1
Pennsylvania Real Estate Investment Trust®
Supplemental Financial and Operating Information
Quarter Ended June 30, 2011
www.preit.com
NYSE: PEI
Pennsylvania Real Estate Investment Trust
Supplemental Financial and Operating Information
June 30, 2011
Introduction |
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1 | ||||
2 | ||||
3 | ||||
Operating Results |
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4 | ||||
5 | ||||
Net Operating Income - Quarters Ended June 30, 2011 and June 30, 2010 |
6 | |||
Net Operating Income - Six Months Ended June 30, 2011 and June 30, 2010 |
7 | |||
8 | ||||
9 | ||||
10 | ||||
Operating Statistics |
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11 | ||||
12 | ||||
13 | ||||
14 | ||||
Strip and Power Center Rent Per Square Foot and Occupancy Percentages |
15 | |||
16 | ||||
17 | ||||
18 | ||||
19 | ||||
Balance Sheet |
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22 | ||||
23 | ||||
24 | ||||
26 | ||||
27 | ||||
28 | ||||
29 | ||||
30 | ||||
31 |
FORWARD-LOOKING STATEMENTS
This Quarterly Supplemental and Operating Information contains certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREITs current views about future events 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. More specifically, PREITs business might be affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: PREITs substantial debt and high leverage ratio; constraining leverage, interest and tangible net worth covenants under the 2010 Credit Facility; PREITs ability to refinance its existing indebtedness when it matures on favorable terms, or at all; PREITs ability to raise capital, including through the issuance of equity or equity-related securities if market conditions are favorable, through joint ventures or other partnerships, through sales of properties, or through other actions; PREITs short- and long-term liquidity position; the effects on PREIT of dislocations and liquidity disruptions in the capital and credit markets; the current economic downturn and its effect on employment, consumer confidence and consumer spending; tenant business and solvency and leasing decisions and the value and potential impairment of PREITs properties; and PREITs ability to maintain and increase property occupancy, sales and net effective rental rates, including at recently redeveloped properties. Additionally, there can be no assurance that PREITs actual results will not differ significantly from the estimates set forth in press releases or other disclosures, or that PREITs returns on its developments, redevelopments or acquisitions will be consistent with the estimates outlined in press releases or other disclosures. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREITs Annual Report on Form 10-K for the year ended December 31, 2010. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.
Pennsylvania Real Estate Investment Trust
Background
Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls. As of June 30, 2011 the Companys 49 properties included 38 shopping malls, eight strip and power centers, and three development properties. These properties are located in 13 states in the eastern half of the United States, primarily in the Mid-Atlantic region. The operating retail properties have a total of approximately 33.2 million square feet. PREIT is headquartered in Philadelphia, Pennsylvania.
If you would like to participate in our quarterly conference call or would like additional information about PREIT, please contact:
Nurit Yaron, Vice President - Investor Relations
200 South Broad Street
Philadelphia, PA 19102
Telephone: (215) 875-0735
Fax: (215) 546-2504
Email: yaronn@preit.com
Reporting Calendar
Third Quarter 2011 October 27, 2011
Research Coverage
Company |
Analyst |
Phone Number | ||
Bank of America/Merrill Lynch | Craig Schmidt | (646) 855-3640 | ||
Jeffery Spector | (646) 855-1363 | |||
Lindsay Schroll | (646) 855-1829 | |||
Barclays Capital | Ross Smotrich | (212) 526-2306 | ||
Ryan Bennett | (212) 526-5309 | |||
Citi Investment Research | Michael Bilerman | (212) 816-1383 | ||
Quentin Velleley | (212) 816-6981 | |||
Green Street Advisors | Jim Sullivan | (949) 640-8780 | ||
Cedrik Lachance | (949) 640-8780 | |||
JP Morgan | Michael W. Mueller | (212) 622-6689 | ||
Keefe, Bruyette, & Woods | Ben Yang | (415) 591-1631 | ||
Sidoti & Company, LLC | Jeffrey Lau | (212) 453-7029 | ||
Stifel Nicolaus | Nathan Isbee | (443) 224-1346 | ||
Jennifer Hummert | (443) 224-1288 |
Page 1
Pennsylvania Real Estate Investment Trust
Dividends and Distributions:
May 5, 2011 - PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.
Acquisitions, dispositions, development and redevelopment activities:
July 28, 2011 - PREIT announced that new retailers are joining PREIT malls.
July 28, 2011 - PREIT announced that jcpenney, Nordstrom Rack, Bravo Cucina Italiana and Forever 21 have signed leases at Willow Grove Park in Willow Grove, PA.
May 18, 2011 - PREIT announced the opening of transformative community-based services at Voorhees Town Center in Voorhees, NJ and Orlando Fashion Square in Orlando, FL.
Financing activities:
June 30, 2011 - PREIT announced the amendment and extension of its $490 Million Credit Facility and the refinancing of two mortgage loans.
Other activities:
July 12, 2011 - PREIT scheduled its Second Quarter 2011 earnings call for Thursday, July 28, 2011.
June 6, 2011 - PREIT announced the results of the annual meeting of shareholders.
June 6, 2011 - PREIT announced it will present at REITWeek 2011, NAREITs Invester Forum in New York, NY.
April 15, 2011 - PREIT scheduled its First Quarter 2011 earnings call for Wednesday, April 27, 2011.
NOTE: The press release announcements are available on the Companys website at www.preit.com.
Page 2
Pennsylvania Real Estate Investment Trust
Market Capitalization and Capital Resources
(in thousands, except per share amounts)
Quarter Ended June 30, | Year Ended December 31, | |||||||||||||||
2011 | 2010 | 2010 | 2009 | |||||||||||||
TRADING INFORMATION |
||||||||||||||||
High Price per share |
$ | 17.34 | $ | 17.35 | $ | 17.35 | $ | 9.13 | ||||||||
Low Price per share |
$ | 13.64 | $ | 11.85 | $ | 8.35 | $ | 2.20 | ||||||||
Closing Share Price (at the end of period) |
$ | 15.70 | $ | 12.22 | $ | 14.53 | $ | 8.46 | ||||||||
MARKET CAPITALIZATION |
||||||||||||||||
EQUITY CAPITALIZATION |
||||||||||||||||
Common Shares Outstanding |
55,686 | 55,318 | 55,436 | 44,615 | ||||||||||||
OP Units Outstanding |
2,329 | 2,329 | 2,329 | 2,329 | ||||||||||||
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Total Shares and OP Units Outstanding |
58,015 | 57,647 | 57,765 | 46,944 | ||||||||||||
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Equity Market CapitalizationShares and OP Units |
$ | 910,832 | $ | 704,440 | $ | 839,327 | $ | 397,148 | ||||||||
DEBT CAPITALIZATION (1) |
||||||||||||||||
Secured Debt Balance (2) |
$ | 2,233,228 | $ | 2,389,267 | $ | 2,265,572 | $ | 1,956,193 | ||||||||
Unsecured Debt Balance (3) (4) |
136,900 | 136,900 | 136,900 | 792,900 | ||||||||||||
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Debt Capitalization |
2,370,128 | 2,526,167 | 2,402,472 | 2,749,093 | ||||||||||||
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TOTAL MARKET CAPITALIZATION |
$ | 3,280,960 | $ | 3,230,607 | $ | 3,241,799 | $ | 3,146,241 | ||||||||
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Equity Capitalization/Total Market Capitalization | 27.8% | 21.8% | 25.9% | 12.6% | ||||||||||||
Debt Capitalization/Total Market Capitalization | 72.2% | 78.2% | 74.1% | 87.4% | ||||||||||||
Unsecured Debt Balance/Total Debt | 5.8% | 5.4% | 5.7% | 28.8% | ||||||||||||
DISTRIBUTIONS PER COMMON SHARE |
||||||||||||||||
Ordinary Income |
(5 | ) | $ | 0.150 | $ | 0.600 | $ | 0.630 | ||||||||
Capital Gain |
(5 | ) | - | - | 0.110 | |||||||||||
Return of Capital/Non-Taxable |
(5 | ) | - | - | - | |||||||||||
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Distributions per share |
$ | 0.150 | $ | 0.150 | $ | 0.600 | $ | 0.740 | ||||||||
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Annualized Dividend Yield (6) |
3.8% | 4.9% | 4.1% | 8.7% | ||||||||||||
CAPITAL RESOURCES |
||||||||||||||||
Cash and Cash Equivalents |
$ | 29,388 | $ | 33,157 | $ | 47,107 | $ | 77,147 | ||||||||
Revolving Credit Facility |
250,000 | 150,000 | 150,000 | 500,000 | ||||||||||||
Amount Outstanding |
(70,000 | ) | - | - | (486,000 | ) | ||||||||||
Letters of Credit |
(561 | ) | (1,534 | ) | (1,534 | ) | (3,030 | ) | ||||||||
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Available Revolving Credit Facility (7) |
179,439 | 148,466 | 148,466 | 10,970 | ||||||||||||
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TOTAL |
$ | 208,827 | $ | 181,623 | $ | 195,573 | $ | 88,117 | ||||||||
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Shelf Registration |
$ | 831,812 | $ | 831,812 | $ | 831,812 | $ | 1,000,000 |
(1) | Amounts exclude debt discount on exchangeable notes and debt premium on mortgage loans. |
(2) | The secured debt balance includes $240,000 in Term Loans and a $70,000 Revolving Facility as of June 30, 2011. |
(3) | The unsecured debt balance included $170,000 in a senior unsecured 2008 Term Loan and $486,000 in outstanding Credit Facility borrowings for the year ended December 31, 2009. |
(4) | The unsecured debt balance includes exchangeable notes of $136,900 for all periods presented. |
(5) | Tax status of 2011 dividend payments will be available in January 2012. |
(6) | Based on closing share price at the end of the period. |
(7) | The available Credit Facility borrowings are subject to covenants that may restrict amounts that can be borrowed. |
Page 3
Pennsylvania Real Estate Investment Trust
Statement of Operations - Quarters Ended June 30, 2011 and June 30, 2010
Proportionate Consolidation Method
(in thousands)
Quarter Ended June 30, 2011 | Quarter Ended June 30, 2010 | |||||||||||||||||||||||||||||||
GAAP | Share
of unconsolidated partnerships (1) |
Discontinued operations |
Total | GAAP | Share
of unconsolidated partnerships (1) |
Discontinued operations |
Total | |||||||||||||||||||||||||
REVENUE: |
||||||||||||||||||||||||||||||||
Base rent |
$ | 70,934 | $ | 6,361 | $ | - | $ | 77,295 | $ | 71,013 | $ | 6,528 | $ | 2,618 | $ | 80,159 | ||||||||||||||||
Expense reimbursements |
31,355 | 2,547 | - | 33,902 | 32,175 | 2,694 | 534 | 35,403 | ||||||||||||||||||||||||
Percentage rent |
715 | - | - | 715 | 641 | 14 | - | 655 | ||||||||||||||||||||||||
Lease termination revenue |
693 | - | - | 693 | 373 | 275 | - | 648 | ||||||||||||||||||||||||
Other real estate revenue |
3,694 | 337 | - | 4,031 | 3,498 | 286 | 3 | 3,787 | ||||||||||||||||||||||||
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Real estate revenue |
107,391 | 9,245 | - | 116,636 | 107,700 | 9,797 | 3,155 | 120,652 | ||||||||||||||||||||||||
Interest and other income |
809 | - | - | 809 | 598 | - | - | 598 | ||||||||||||||||||||||||
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Total revenue |
108,200 | 9,245 | - | 117,445 | 108,298 | 9,797 | 3,155 | 121,250 | ||||||||||||||||||||||||
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|||||||||||||||||
EXPENSES: |
||||||||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||
CAM and real estate taxes |
(35,260 | ) | (2,066 | ) | - | (37,326 | ) | (34,932 | ) | (2,063 | ) | (579 | ) | (37,574 | ) | |||||||||||||||||
Utilities |
(6,078 | ) | (229 | ) | - | (6,307 | ) | (6,165 | ) | (219 | ) | (1 | ) | (6,385 | ) | |||||||||||||||||
Other operating expenses |
(6,129 | ) | (587 | ) | - | (6,716 | ) | (6,349 | ) | (612 | ) | (24 | ) | (6,985 | ) | |||||||||||||||||
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|||||||||||||||||
Total operating expenses |
(47,467 | ) | (2,882 | ) | - | (50,349 | ) | (47,446 | ) | (2,894 | ) | (604 | ) | (50,944 | ) | |||||||||||||||||
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Depreciation and amortization |
(36,614 | ) | (2,358 | ) | - | (38,972 | ) | (40,274 | ) | (2,102 | ) | (1,324 | ) | (43,700 | ) | |||||||||||||||||
Other expenses: |
||||||||||||||||||||||||||||||||
General and administrative expenses |
(10,433 | ) | - | - | (10,433 | ) | (9,617 | ) | - | - | (9,617 | ) | ||||||||||||||||||||
Project costs and other expenses |
(353 | ) | - | - | (353 | ) | (161 | ) | - | - | (161 | ) | ||||||||||||||||||||
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Total other expenses |
(10,786 | ) | - | - | (10,786 | ) | (9,778 | ) | - | - | (9,778 | ) | ||||||||||||||||||||
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Interest expense, net (2) |
(34,941 | ) | (2,858 | ) | - | (37,799 | ) | (37,998 | ) | (1,853 | ) | (627 | ) | (40,478 | ) | |||||||||||||||||
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Total expenses |
(129,808 | ) | (8,098 | ) | - | (137,906 | ) | (135,496 | ) | (6,849 | ) | (2,555 | ) | (144,900 | ) | |||||||||||||||||
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Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate |
(21,608 | ) | 1,147 | - | (20,461 | ) | (27,198 | ) | 2,948 | 600 | (23,650 | ) | ||||||||||||||||||||
Equity in income of partnerships |
1,147 | (1,147 | ) | - | - | 2,948 | (2,948 | ) | - | - | ||||||||||||||||||||||
Gains on sales of real estate |
740 | - | - | 740 | - | - | - | - | ||||||||||||||||||||||||
Gains on sales of non-operating real estate |
710 | - | - | 710 | - | - | - | - | ||||||||||||||||||||||||
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Loss from continuing operations |
(19,011 | ) | - | - | (19,011 | ) | (24,250 | ) | - | 600 | (23,650 | ) | ||||||||||||||||||||
Discontinued operations: |
||||||||||||||||||||||||||||||||
Operating results from discontinued operations |
- | - | - | - | 600 | - | (600 | ) | - | |||||||||||||||||||||||
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Income from discontinued operations |
- | - | - | - | 600 | - | (600 | ) | - | |||||||||||||||||||||||
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Net loss |
(19,011 | ) | - | - | (19,011 | ) | (23,650 | ) | - | - | (23,650 | ) | ||||||||||||||||||||
Less: net loss attributable to noncontrolling interest |
763 | - | - | 763 | 964 | - | - | 964 | ||||||||||||||||||||||||
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Net loss attributable to PREIT |
$ | (18,248 | ) | $ | - | $ | - | $ | (18,248 | ) | $ | (22,686 | ) | $ | - | $ | - | $ | (22,686 | ) | ||||||||||||
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(1) | PREITs proportionate share of partnership operations is grossed up to reflect the Companys share of the total revenue and expenses of the underlying properties. |
(2) | Net of capitalized interest expense of $367 and $943 for the quarters ended June 30, 2011 and 2010, respectively. |
Page 4
Pennsylvania Real Estate Investment Trust
Statement of Operations - Six Months Ended June 30, 2011 and June 30, 2010
Proportionate Consolidation Method
(in thousands)
Six Months Ended June 30, 2011 | Six Months Ended June 30, 2010 | |||||||||||||||||||||||||||||||
GAAP | Share
of unconsolidated partnerships (1) |
Discontinued operations |
Total | GAAP | Share
of unconsolidated partnerships (1) |
Discontinued operations |
Total | |||||||||||||||||||||||||
REVENUE: |
||||||||||||||||||||||||||||||||
Base rent |
$ | 142,694 | $ | 12,740 | $ | - | $ | 155,434 | $ | 142,854 | $ | 12,764 | $ | 5,231 | $ | 160,849 | ||||||||||||||||
Expense reimbursements |
65,118 | 5,141 | - | 70,259 | 66,410 | 5,406 | 1,111 | 72,927 | ||||||||||||||||||||||||
Percentage rent |
1,696 | 21 | - | 1,717 | 1,525 | 27 | - | 1,552 | ||||||||||||||||||||||||
Lease termination revenue |
718 | - | - | 718 | 2,181 | 275 | - | 2,456 | ||||||||||||||||||||||||
Other real estate revenue |
6,727 | 642 | - | 7,369 | 6,460 | 563 | 6 | 7,029 | ||||||||||||||||||||||||
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Real estate revenue |
216,953 | 18,544 | - | 235,497 | 219,430 | 19,035 | 6,348 | 244,813 | ||||||||||||||||||||||||
Interest and other income |
1,727 | - | - | 1,727 | 1,326 | - | - | 1,326 | ||||||||||||||||||||||||
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Total revenue |
218,680 | 18,544 | - | 237,224 | 220,756 | 19,035 | 6,348 | 246,139 | ||||||||||||||||||||||||
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EXPENSES: |
||||||||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||
CAM and real estate taxes |
(72,564 | ) | (4,365 | ) | - | (76,929 | ) | (71,501 | ) | (4,407 | ) | (1,312 | ) | (77,220 | ) | |||||||||||||||||
Utilities |
(11,909 | ) | (425 | ) | - | (12,334 | ) | (12,466 | ) | (417 | ) | (3 | ) | (12,886 | ) | |||||||||||||||||
Other operating expenses |
(12,087 | ) | (1,099 | ) | - | (13,186 | ) | (12,136 | ) | (1,175 | ) | (59 | ) | (13,370 | ) | |||||||||||||||||
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Total operating expenses |
(96,560 | ) | (5,889 | ) | - | (102,449 | ) | (96,103 | ) | (5,999 | ) | (1,374 | ) | (103,476 | ) | |||||||||||||||||
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Depreciation and amortization |
(71,124 | ) | (4,328 | ) | - | (75,452 | ) | (81,004 | ) | (4,561 | ) | (2,601 | ) | (88,166 | ) | |||||||||||||||||
Other expenses: |
||||||||||||||||||||||||||||||||
General and administrative expenses |
(20,015 | ) | - | - | (20,015 | ) | (19,303 | ) | - | - | (19,303 | ) | ||||||||||||||||||||
Project costs and other expenses |
(497 | ) | - | - | (497 | ) | (455 | ) | - | - | (455 | ) | ||||||||||||||||||||
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|||||||||||||||||
Total other expenses |
(20,512 | ) | - | - | (20,512 | ) | (19,758 | ) | - | - | (19,758 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Interest expense, net (2) |
(68,554 | ) | (5,637 | ) | - | (74,191 | ) | (72,204 | ) | (3,437 | ) | (1,252 | ) | (76,893 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total expenses |
(256,750 | ) | (15,854 | ) | - | (272,604 | ) | (269,069 | ) | (13,997 | ) | (5,227 | ) | (288,293 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate |
(38,070 | ) | 2,690 | - | (35,380 | ) | (48,313 | ) | 5,038 | 1,121 | (42,154 | ) | ||||||||||||||||||||
Equity in income of partnerships |
2,690 | (2,690 | ) | - | - | 5,038 | (5,038 | ) | - | - | ||||||||||||||||||||||
Gains on sales of real estate |
740 | - | - | 740 | - | - | - | - | ||||||||||||||||||||||||
Gains on sales of non-operating real estate |
710 | - | 710 | - | - | - | - | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loss from continuing operations |
(33,930 | ) | - | - | (33,930 | ) | (43,275 | ) | - | 1,121 | (42,154 | ) | ||||||||||||||||||||
Discontinued operations |
||||||||||||||||||||||||||||||||
Operating results from discontinued operations |
- | - | - | - | 1,121 | - | (1,121 | ) | - | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Income from discontinued operations |
- | - | - | - | 1,121 | - | (1,121 | ) | - | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net loss |
(33,930 | ) | - | - | (33,930 | ) | (42,154 | ) | - | - | (42,154 | ) | ||||||||||||||||||||
Less: net loss attributable to noncontrolling interests |
1,364 | - | - | 1,364 | 1,842 | - | - | 1,842 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net loss attributable to PREIT |
$ | (32,566 | ) | $ | - | $ | - | $ | (32,566 | ) | $ | (40,312 | ) | $ | - | $ | - | $ | (40,312 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | PREITs proportionate share of partnership operations is grossed up to reflect the Companys share of the total revenue and expenses of the underlying properties. |
(2) | Net of capitalized interest expense of $765 and $1,478 for the six months ended June 30, 2011 and 2010, respectively. |
Page 5
Pennsylvania Real Estate Investment Trust
Net Operating Income(1) - Quarters Ended June 30, 2011 and 2010
(in thousands)
Quarter Ended June 30, 2011 | Quarter Ended June 30, 2010 | |||||||||||||||||||||||
SAME STORE RETAIL/OTHER |
Same | Other | Total | Same | Other | Total | ||||||||||||||||||
Real estate revenue: |
||||||||||||||||||||||||
Base rent |
$ | 76,956 | $ | 339 | $ | 77,295 | $ | 77,148 | $ | 3,011 | $ | 80,159 | ||||||||||||
Expense reimbursements |
33,893 | 9 | 33,902 | 34,854 | 549 | 35,403 | ||||||||||||||||||
Percentage rent |
715 | - | 715 | 655 | - | 655 | ||||||||||||||||||
Lease termination revenue |
693 | - | 693 | 648 | - | 648 | ||||||||||||||||||
Other real estate revenue |
3,909 | 122 | 4,031 | 3,666 | 121 | 3,787 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL REAL ESTATE REVENUE |
116,166 | 470 | 116,636 | 116,971 | 3,681 | 120,652 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses: |
||||||||||||||||||||||||
CAM and real estate taxes |
(36,917 | ) | (409 | ) | (37,326 | ) | (36,633 | ) | (941 | ) | (37,574 | ) | ||||||||||||
Utilities |
(6,307 | ) | - | (6,307 | ) | (6,384 | ) | (1 | ) | (6,385 | ) | |||||||||||||
Other operating expenses |
(6,660 | ) | (56 | ) | (6,716 | ) | (6,922 | ) | (63 | ) | (6,985 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL OPERATING EXPENSES |
(49,884 | ) | (465 | ) | (50,349 | ) | (49,939 | ) | (1,005 | ) | (50,944 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET OPERATING INCOME |
$ | 66,282 | $ | 5 | $ | 66,287 | $ | 67,032 | $ | 2,676 | $ | 69,708 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Quarter Ended June 30, 2011 | Quarter Ended June 30, 2010 | |||||||||||||||||||||||
SAME STORE RETAIL COMPARISON |
Malls | Strip and Power Centers |
Total | Malls | Strip and Power Centers |
Total | ||||||||||||||||||
Real estate revenue: |
||||||||||||||||||||||||
Base rent |
$ | 71,811 | $ | 5,145 | $ | 76,956 | $ | 71,410 | $ | 5,738 | $ | 77,148 | ||||||||||||
Expense reimbursements |
32,699 | 1,194 | 33,893 | 33,674 | 1,180 | 34,854 | ||||||||||||||||||
Percentage rent |
715 | - | 715 | 646 | 9 | 655 | ||||||||||||||||||
Lease termination revenue |
78 | 615 | 693 | 648 | - | 648 | ||||||||||||||||||
Other real estate revenue |
3,845 | 64 | 3,909 | 3,605 | 61 | 3,666 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL REAL ESTATE REVENUE |
109,148 | 7,018 | 116,166 | 109,983 | 6,988 | 116,971 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses: |
||||||||||||||||||||||||
CAM and real estate taxes |
(35,678 | ) | (1,239 | ) | (36,917 | ) | (35,324 | ) | (1,309 | ) | (36,633 | ) | ||||||||||||
Utilities |
(6,216 | ) | (91 | ) | (6,307 | ) | (6,327 | ) | (57 | ) | (6,384 | ) | ||||||||||||
Other operating expenses |
(6,560 | ) | (100 | ) | (6,660 | ) | (6,806 | ) | (116 | ) | (6,922 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL OPERATING EXPENSES |
(48,454 | ) | (1,430 | ) | (49,884 | ) | (48,457 | ) | (1,482 | ) | (49,939 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET OPERATING INCOME |
$ | 60,694 | $ | 5,588 | $ | 66,282 | $ | 61,526 | $ | 5,506 | $ | 67,032 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | PREITs proportionate share of partnership operations is grossed up to reflect the Companys share of the total revenue and expenses of the underlying properties. |
Page 6
Pennsylvania Real Estate Investment Trust
Net Operating Income(1) - Six Months Ended June 30, 2011 and 2010
(in thousands)
Six Months Ended June 30, 2011 | Six Months Ended June 30, 2010 | |||||||||||||||||||||||
SAME STORE RETAIL/OTHER |
Same | Other | Total | Same | Other | Total | ||||||||||||||||||
Real estate revenue: |
||||||||||||||||||||||||
Base rent |
$ | 154,743 | $ | 691 | $ | 155,434 | $ | 154,830 | $ | 6,019 | $ | 160,849 | ||||||||||||
Expense reimbursements |
70,238 | 21 | 70,259 | 71,788 | 1,139 | 72,927 | ||||||||||||||||||
Percentage rent |
1,717 | - | 1,717 | 1,552 | - | 1,552 | ||||||||||||||||||
Lease termination revenue |
718 | - | 718 | 2,456 | - | 2,456 | ||||||||||||||||||
Other real estate revenue |
7,127 | 242 | 7,369 | 6,786 | 243 | 7,029 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL REAL ESTATE REVENUE |
234,543 | 954 | 235,497 | 237,412 | 7,401 | 244,813 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses: |
||||||||||||||||||||||||
CAM and real estate taxes |
(76,110) | (819) | (76,929) | (75,226) | (1,994) | (77,220) | ||||||||||||||||||
Utilities |
(12,334) | - | (12,334) | (12,883) | (3) | (12,886) | ||||||||||||||||||
Other operating expenses |
(13,054) | (132) | (13,186) | (13,226) | (144) | (13,370) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL OPERATING EXPENSES |
(101,498) | (951) | (102,449) | (101,335) | (2,141) | (103,476) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET OPERATING INCOME |
$ | 133,045 | $ | 3 | $ | 133,048 | $ | 136,077 | $ | 5,260 | $ | 141,337 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Six Months Ended June 30, 2011 | Six Months Ended June 30, 2010 | |||||||||||||||||||||||
SAME STORE RETAIL COMPARISON |
Malls | Strip and Power Centers |
Total | Malls | Strip and Power Centers |
Total | ||||||||||||||||||
Real estate revenue: |
||||||||||||||||||||||||
Base rent |
$ | 143,821 | $ | 10,922 | $ | 154,743 | $ | 143,674 | $ | 11,156 | $ | 154,830 | ||||||||||||
Expense reimbursements |
67,613 | 2,625 | 70,238 | 69,044 | 2,744 | 71,788 | ||||||||||||||||||
Percentage rent |
1,701 | 16 | 1,717 | 1,560 | (8) | 1,552 | ||||||||||||||||||
Lease termination revenue |
103 | 615 | 718 | 2,456 | - | 2,456 | ||||||||||||||||||
Other real estate revenue |
7,009 | 118 | 7,127 | 6,676 | 110 | 6,786 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL REAL ESTATE REVENUE |
220,247 | 14,296 | 234,543 | 223,410 | 14,002 | 237,412 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses: |
||||||||||||||||||||||||
CAM and real estate taxes |
(73,328) | (2,782) | (76,110) | (72,272) | (2,954) | (75,226) | ||||||||||||||||||
Utilities |
(12,204) | (130) | (12,334) | (12,781) | (102) | (12,883) | ||||||||||||||||||
Other operating expenses |
(12,699) | (355) | (13,054) | (12,900) | (326) | (13,226) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL OPERATING EXPENSES |
(98,231) | (3,267) | (101,498) | (97,953) | (3,382) | (101,335) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET OPERATING INCOME |
$ | 122,016 | $ | 11,029 | $ | 133,045 | $ | 125,457 | $ | 10,620 | $ | 136,077 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | PREITs proportionate share of partnership operations is grossed up to reflect the Companys share of the total revenue and expenses of the underlying properties. |
Page 7
Pennsylvania Real Estate Investment Trust
Earnings Per Share
(in thousands, except per share amounts)
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Loss from continuing operations |
$ | (19,011 | ) | $ | (24,250 | ) | $ | (33,930 | ) | $ | (43,275 | ) | ||||
Noncontrolling interest in continuing operations |
763 | 988 | 1,364 | 1,886 | ||||||||||||
Dividends on unvested restricted shares |
(144 | ) | (168 | ) | (262 | ) | (266 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from continuing operations used to calculate earnings per sharebasic and diluted |
$ | (18,392 | ) | $ | (23,430 | ) | $ | (32,828 | ) | $ | (41,655 | ) | ||||
|
|
|
|
|
|
|
|
|||||||||
Income from discontinued operations |
$ | - | $ | 600 | $ | - | $ | 1,121 | ||||||||
Noncontrolling interest in discontinued operations |
- | (24 | ) | - | (44 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income from discontinued operations used to calculate earnings per sharebasic and diluted |
$ | - | $ | 576 | $ | - | $ | 1,077 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic loss per share |
||||||||||||||||
Loss from continuing operations |
$ | (0.34 | ) | $ | (0.46 | ) | $ | (0.60 | ) | $ | (0.88 | ) | ||||
Income from discontinued operations |
- | 0.01 | - | 0.02 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | (0.34 | ) | $ | (0.45 | ) | $ | (0.60 | ) | $ | (0.86 | ) | |||||
|
|
|
|
|
|
|
|
|||||||||
Diluted loss per share |
||||||||||||||||
Loss from continuing operations |
$ | (0.34 | ) | $ | (0.46 | ) | $ | (0.60 | ) | $ | (0.88 | ) | ||||
Income from discontinued operations |
- | 0.01 | - | 0.02 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | (0.34 | ) | $ | (0.45 | ) | $ | (0.60 | ) | $ | (0.86 | ) | |||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares outstanding |
55,656 | 51,439 | 55,571 | 48,038 | ||||||||||||
Weighted average unvested restricted shares |
(976 | ) | (1,122 | ) | (1,004 | ) | (1,025 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstandingbasic |
54,680 | 50,317 | 54,567 | 47,013 | ||||||||||||
Weighted average effect of common share equivalents (1) |
- | - | - | - | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total weighted average shares outstandingdiluted |
54,680 | 50,317 | 54,567 | 47,013 | ||||||||||||
|
|
|
|
|
|
|
|
(1) | The Company had net losses from continuing operations for all periods presented. Therefore, the effect of common share equivalents of 851 and 587 for the quarters ended June 30, 2011 and 2010, respectively, and 922 and 349 for the six months ended June 30, 2011 and 2010, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive. |
Page 8
Pennsylvania Real Estate Investment Trust
Funds From Operations and Funds Available for Distribution
(in thousands, except per share amounts)
Quarter Ended June 30, 2011 | Quarter Ended June 30, 2010 | |||||||||||||||||||||||||||||||
FUNDS FROM OPERATIONS (FFO) | Consolidated | Share of unconsolidated partnerships |
Discontinued operations |
Total | Consolidated | Share of unconsolidated partnerships |
Discontinued operations |
Total | ||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Real estate revenue (1) |
$ | 107,391 | $ | 9,245 | $ | - | $ | 116,636 | $ | 107,700 | $ | 9,797 | $ | 3,155 | $ | 120,652 | ||||||||||||||||
Operating expenses |
(47,467 | ) | (2,882 | ) | - | (50,349 | ) | (47,446 | ) | (2,894 | ) | (604 | ) | (50,944 | ) | |||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
NET OPERATING INCOME |
59,924 | 6,363 | - | 66,287 | 60,254 | 6,903 | 2,551 | 69,708 | ||||||||||||||||||||||||
General and administrative expenses |
(10,433 | ) | - | - | (10,433 | ) | (9,617 | ) | - | - | (9,617 | ) | ||||||||||||||||||||
Interest and other income |
809 | - | - | 809 | 598 | - | - | 598 | ||||||||||||||||||||||||
Project costs and other expenses |
(353 | ) | - | - | (353 | ) | (161 | ) | - | - | (161 | ) | ||||||||||||||||||||
Interest expense, net |
(34,941 | ) | (2,858 | ) | - | (37,799 | ) | (37,998 | ) | (1,853 | ) | (627 | ) | (40,478 | ) | |||||||||||||||||
Gains on sales of non operating real estate |
710 | - | - | 710 | - | - | - | - | ||||||||||||||||||||||||
Depreciation on non real estate assets |
(222 | ) | - | - | (222 | ) | (378 | ) | - | - | (378 | ) | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FFO |
15,494 | 3,505 | - | 18,999 | 12,698 | 5,050 | 1,924 | 19,672 | ||||||||||||||||||||||||
Gains on sales of real estate |
740 | - | - | 740 | - | - | - | - | ||||||||||||||||||||||||
Depreciation on real estate assets |
(36,392 | ) | (2,358 | ) | - | (38,750 | ) | (39,896 | ) | (2,102 | ) | (1,324 | ) | (43,322 | ) | |||||||||||||||||
Equity in income of partnerships |
1,147 | (1,147 | ) | - | - | 2,948 | (2,948 | ) | - | - | ||||||||||||||||||||||
Income in discontinued operations |
- | - | - | - | 600 | - | (600 | ) | - | |||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Net loss |
$ | (19,011 | ) | $ | - | $ | - | $ | (19,011 | ) | $ | (23,650 | ) | $ | - | $ | - | $ | (23,650 | ) | ||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
(1) Total includes the non-cash effect of straight-line rent of ($515) and $356 for the quarters ended June 30, 2011 and 2010, respectively. |
| |||||||||||||||||||||||||||||||
FUNDS AVAILABLE FOR DISTRIBUTION (FAD) |
||||||||||||||||||||||||||||||||
FFO |
$ | 15,494 | $ | 3,505 | $ | - | $ | 18,999 | $ | 12,698 | $ | 5,050 | $ | 1,924 | $ | 19,672 | ||||||||||||||||
Adjustments: |
||||||||||||||||||||||||||||||||
Straight line rent |
441 | 74 | - | 515 | (341 | ) | 31 | (46 | ) | (356 | ) | |||||||||||||||||||||
Recurring capital expenditures |
(4,428 | ) | (110 | ) | - | (4,538 | ) | (1,616 | ) | (3 | ) | - | (1,619 | ) | ||||||||||||||||||
Tenant allowances |
(4,612 | ) | - | - | (4,612 | ) | (3,407 | ) | - | - | (3,407 | ) | ||||||||||||||||||||
Capitalized leasing costs |
(1,366 | ) | - | - | (1,366 | ) | (1,256 | ) | - | - | (1,256 | ) | ||||||||||||||||||||
Amortization of mortgage loan premium |
(294 | ) | - | - | (294 | ) | (300 | ) | - | - | (300 | ) | ||||||||||||||||||||
Amortization of above- and below-market lease intangibles |
57 | (44 | ) | - | 13 | 61 | (67 | ) | - | (6 | ) | |||||||||||||||||||||
Amortization of exchangeable notes debt discount |
487 | - | 487 | 461 | - | - | 461 | |||||||||||||||||||||||||
Impairment of assets |
225 | - | - | 225 | - | - | - | - | ||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FAD |
$ | 6,004 | $ | 3,425 | $ | - | $ | 9,429 | $ | 6,300 | $ | 5,011 | $ | 1,878 | $ | 13,189 | ||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Weighted average number of shares outstanding |
54,680 | 50,317 | ||||||||||||||||||||||||||||||
Weighted average effect of full conversion of OP Units |
2,329 | 2,329 | ||||||||||||||||||||||||||||||
Effect of common share equivalents |
851 | 587 | ||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Total weighted average shares outstanding, including OP Units |
57,860 | 53,233 | ||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FFO |
$ | 18,999 | $ | 19,672 | ||||||||||||||||||||||||||||
Accelerated amortization of deferred financing fees |
100 | 2,258 | ||||||||||||||||||||||||||||||
Impairment of assets |
225 | - | ||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FFO AS ADJUSTED |
$ | 19,324 | $ | 21,930 | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FFO PER DILUTED SHARE AND OP UNIT |
$ | 0.33 | $ | 0.37 | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED |
|
$ | 0.33 | $ | 0.41 | |||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FAD PER DILUTED SHARE AND OP UNIT |
$ | 0.16 | $ | 0.25 | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
DIVIDEND PER COMMON SHARE |
$ | 0.15 | $ | 0.15 | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
PAYOUT RATIOS |
||||||||||||||||||||||||||||||||
Payout ratio of FFO |
36.5% | (2) | 61.5% | (3) | ||||||||||||||||||||||||||||
Payout ratio of FFO as adjusted |
35.7% | (2) | 25.6% | (3) | ||||||||||||||||||||||||||||
Payout ratio of FAD |
67.4% | (2) | 36.3% | (3) |
(2) | Twelve months ended June 30, 2011. |
(3) | Payout ratio of FFO, as adjusted, and FAD for the twelve months ended June 30, 2010. |
Page 9
Pennsylvania Real Estate Investment Trust
Funds From Operations and Funds Available for Distribution
(in thousands, except per share amounts)
Six Months Ended June 30, 2011 | Six Months Ended June 30, 2010 | |||||||||||||||||||||||||||||||
FUNDS FROM OPERATIONS (FFO) | Consolidated | Share of unconsolidated partnerships |
Discontinued operations |
Total | Consolidated | Share of unconsolidated partnerships |
Discontinued operations |
Total | ||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Real estate revenue (1) |
$ | 216,953 | $ | 18,544 | $ | - | $ | 235,497 | $ | 219,430 | $ | 19,035 | $ | 6,348 | $ | 244,813 | ||||||||||||||||
Operating expenses |
(96,560 | ) | (5,889 | ) | - | (102,449 | ) | (96,103 | ) | (5,999 | ) | (1,374 | ) | (103,476 | ) | |||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
NET OPERATING INCOME |
120,393 | 12,655 | - | 133,048 | 123,327 | 13,036 | 4,974 | 141,337 | ||||||||||||||||||||||||
General and administrative expenses |
(20,015 | ) | - | - | (20,015 | ) | (19,303 | ) | - | - | (19,303 | ) | ||||||||||||||||||||
Interest and other income |
1,727 | - | - | 1,727 | 1,326 | - | - | 1,326 | ||||||||||||||||||||||||
Project costs and other expenses |
(497 | ) | - | - | (497 | ) | (455 | ) | - | - | (455 | ) | ||||||||||||||||||||
Interest expense, net |
(68,554 | ) | (5,637 | ) | - | (74,191 | ) | (72,204 | ) | (3,437 | ) | (1,252 | ) | (76,893 | ) | |||||||||||||||||
Gains on sales of non operating real estate |
710 | - | - | 710 | - | - | - | - | ||||||||||||||||||||||||
Depreciation on non real estate assets |
(474 | ) | - | - | (474 | ) | (816 | ) | - | - | (816 | ) | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FFO |
33,290 | 7,018 | - | 40,308 | 31,875 | 9,599 | 3,722 | 45,196 | ||||||||||||||||||||||||
Gains on sales of real estate |
740 | - | - | 740 | - | - | - | |||||||||||||||||||||||||
Depreciation on real estate assets |
(70,650 | ) | (4,328 | ) | - | (74,978 | ) | (80,188 | ) | (4,561 | ) | (2,601 | ) | (87,350 | ) | |||||||||||||||||
Equity in income of partnerships |
2,690 | (2,690 | ) | - | - | 5,038 | (5,038 | ) | - | - | ||||||||||||||||||||||
Income in discontinued operations |
- | - | - | - | 1,121 | - | (1,121 | ) | - | |||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Net loss |
$ | (33,930 | ) | $ | - | $ | - | $ | (33,930 | ) | $ | (42,154 | ) | $ | - | $ | - | $ | (42,154 | ) | ||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
(1) Total includes the non-cash effect of straight-line rent of ($306) and $878 for the years ended June 30, 2011 and 2010, respectively. |
| |||||||||||||||||||||||||||||||
FUNDS AVAILABLE FOR DISTRIBUTION (FAD) |
||||||||||||||||||||||||||||||||
FFO |
$ | 33,290 | $ | 7,018 | $ | - | $ | 40,308 | $ | 31,875 | $ | 9,599 | $ | 3,722 | $ | 45,196 | ||||||||||||||||
Adjustments: |
||||||||||||||||||||||||||||||||
Straight line rent |
165 | 141 | 306 | (838 | ) | 51 | (91 | ) | (878 | ) | ||||||||||||||||||||||
Recurring capital expenditures |
(4,758 | ) | (143 | ) | - | (4,901 | ) | (1,734 | ) | (47 | ) | - | (1,781 | ) | ||||||||||||||||||
Tenant allowances |
(5,841 | ) | - | - | (5,841 | ) | (5,389 | ) | 18 | - | (5,371 | ) | ||||||||||||||||||||
Capitalized leasing costs |
(2,524 | ) | - | - | (2,524 | ) | (2,141 | ) | - | - | (2,141 | ) | ||||||||||||||||||||
Amortization of mortgage loan premium |
(576 | ) | - | - | (576 | ) | (586 | ) | - | - | (586 | ) | ||||||||||||||||||||
Amortization of above- and below-market lease intangibles |
104 | (91 | ) | - | 13 | 120 | (133 | ) | - | (13 | ) | |||||||||||||||||||||
Amortization of exchangeable notes debt discount |
966 | - | - | 966 | 915 | - | - | 915 | ||||||||||||||||||||||||
Impairment of assets |
225 | - | - | 225 | - | - | - | - | ||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FAD |
$ | 21,051 | $ | 6,925 | $ | - | $ | 27,976 | $ | 22,222 | $ | 9,488 | $ | 3,631 | $ | 35,341 | ||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Weighted average number of shares outstanding |
54,567 | 47,013 | ||||||||||||||||||||||||||||||
Weighted average effect of full conversion of OP Units |
2,329 | 2,329 | ||||||||||||||||||||||||||||||
Effect of common share equivalents |
922 | 349 | ||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Total weighted average shares outstanding, including OP Units |
57,818 | 49,691 | ||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FFO |
$ | 40,308 | $ | 45,196 | ||||||||||||||||||||||||||||
Accelerated amortization of deferred financing fees |
100 | 2,258 | ||||||||||||||||||||||||||||||
Impairment of assets |
225 | - | ||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FFO AS ADJUSTED |
$ | 40,633 | $ | 47,454 | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FFO PER DILUTED SHARE AND OP UNIT |
$ | 0.70 | $ | 0.91 | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED |
|
$ | 0.70 | $ | 0.95 | |||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
FAD PER DILUTED SHARE AND OP UNIT |
$ | 0.48 | $ | 0.71 | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
DIVIDEND PER COMMON SHARE |
$ | 0.30 | $ | 0.30 | ||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
PAYOUT RATIOS |
||||||||||||||||||||||||||||||||
Payout ratio of FFO |
36.5% | (2) | 61.5% | (3) | ||||||||||||||||||||||||||||
Payout ratio of FFO as adjusted |
35.7% | (2) | 25.6% | (3) | ||||||||||||||||||||||||||||
Payout ratio of FAD |
67.4% | (2) | 36.3% | (3) |
(2) | Twelve months ended June 30, 2011. |
(3) | Payout ratio of FFO, FFO as adjusted, and FAD for the twelve months ended June 30, 2010. |
Page 10
Pennsylvania Real Estate Investment Trust
Average Base Rent psf | Change in Base Rent psf | |||||||||||||||||||||||||
Number | GLA | Previous | New | Dollar | Percentage | Annualized Tenant Improvements psf (3) |
||||||||||||||||||||
New Leases - Previously Leased Space: |
|
|||||||||||||||||||||||||
1st Quarter (1) |
21 | 77,140 | $ | 22.24 | $ | 19.68 | $ | (2.56 | ) | -11.5% | $ | 1.39 | ||||||||||||||
2nd Quarter (2) |
27 | 82,868 | 21.79 | 21.97 | 0.18 | 0.8% | 1.45 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total/Average |
48 | 160,008 | $ | 22.01 | $ | 20.87 | $ | (1.14 | ) | -5.2% | $ | 1.42 | ||||||||||||||
New Leases - Previously Vacant Space: (4) |
||||||||||||||||||||||||||
1st Quarter |
20 | 86,463 | N/A | $ | 16.86 | $ | 16.86 | N/A | $ | 2.05 | ||||||||||||||||
2nd Quarter |
39 | 110,003 | N/A | 18.38 | 18.38 | N/A | 3.40 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total/Average |
59 | 196,466 | N/A | $ | 17.71 | $ | 17.71 | N/A | $ | 2.81 | ||||||||||||||||
Renewal: (5) |
||||||||||||||||||||||||||
1st Quarter (1) |
81 | 310,673 | $ | 22.22 | $ | 22.23 | $ | 0.01 | 0.0% | $ | 0.09 | |||||||||||||||
2nd Quarter (2) |
92 | 321,947 | 22.37 | 22.89 | 0.52 | 2.3% | 0.05 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total/Average |
173 | 632,620 | $ | 22.30 | $ | 22.57 | $ | 0.27 | 1.2% | $ | 0.07 | |||||||||||||||
Anchor Renewal: |
||||||||||||||||||||||||||
1st Quarter |
5 | 367,162 | $ | 2.73 | $ | 2.73 | $ | - | 0.0% | $ | - | |||||||||||||||
2nd Quarter |
4 | 436,916 | 2.40 | 2.40 | - | 0.0% | - | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total/Average |
9 | 804,078 | $ | 2.55 | $ | 2.55 | $ | - | 0.0% | $ | - |
(1) Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were -5.6% for New Leases - Previously Leased Space and -6.0% for Renewals.
(2) Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were 2.2% for New Leases - Previously Leased Space and -2.3% for Renewals.
(3) These leasing costs are presented as annualized costs per square foot and are spread uniformly over the initial lease term.
(4) This category includes newly constructed and recommissioned space.
(5) This category includes expansions, relocations and lease extensions.
Page 11
Pennsylvania Real Estate Investment Trust
Summarized Rent Per Square Foot and Occupancy Percentages
June 30, 2011 | June 30, 2010 | Change | ||||||||||||||||||||
Occupancy(1) | Occupancy(1) | Occupancy(1) | ||||||||||||||||||||
Avg Base | Avg Base | Avg Base | ||||||||||||||||||||
Rent | Total | Non- Anchor | Rent | Total | Non- Anchor | Rent | Total | Non- Anchor | ||||||||||||||
Malls weighted average (2) |
$ 32.40 | 90.3% | 86.3% | $ 32.65 | 90.2% | 85.9% | -0.8% | 0.1% | 0.4% | |||||||||||||
Strip and Power Centers weighted average |
$ 16.29 | 94.5% | 91.9% | $ 16.07 | 95.5% | 93.4% | 1.4% | -1.0% | -1.5% | |||||||||||||
Retail Portfolio weighted average |
$ 28.83 | 90.8% | 87.1% | $ 28.81 | 90.8% | 86.9% | 0.1% | 0.0% | 0.2% | |||||||||||||
Consolidated Properties |
$ 30.37 | 90.3% | 86.1% | $ 30.62 | 90.2% | 85.8% | -0.8% | 0.1% | 0.3% | |||||||||||||
Unconsolidated Properties |
$ 23.59 | 94.1% | 92.1% | $ 22.91 | 94.9% | 93.3% | 3.0% | -0.8% | -1.2% | |||||||||||||
Same Properties |
$ 28.83 | 90.8% | 87.1% | $ 28.81 | 90.8% | 86.9% | 0.1% | 0.0% | 0.2% |
(1) Occupancy for both periods presented includes all tenants irrespective of the terms of their agreement. Previously, occupancy was reported excluding tenants under agreements with initial terms of less than one year.
(2) Average base rent for tenants that lease individual spaces of 10,000 square feet or less and pay fixed rent. Average base rent for tenants greater than 10,000 square feet that pay fixed rent was $14.22/sq ft as of June 30, 2011 and $14.52/sq ft as of June 30, 2010.
Page 12
Pennsylvania Real Estate Investment Trust
Mall Sales and Rent Per Square Foot
June 30, 2011 | June 30, 2010 | Change | ||||||||||||||||||||||||||||||||||||||||||
% of Current Quarter Mall NOI |
Avg Base Rent(1) |
Avg Comp Sales(2) |
Occup . Cost Ratio(2) |
Avg Base Rent(1) |
Avg Comp Sales(2) |
Occup . Cost Ratio(2) |
Avg Base Rent(1) |
Avg Comp Sales(2) |
Occup . Cost Ratio(2) |
|||||||||||||||||||||||||||||||||||
Sales per square foot over $400 | 26.9 | % | ||||||||||||||||||||||||||||||||||||||||||
Cherry Hill Mall |
$ | 46.51 | $ | 556 | 13.6 | % | $ | 46.16 | $ | 523 | 14.7 | % | 0.8 | % | 6.3 | % | -1.1 | % | ||||||||||||||||||||||||||
Lehigh Valley Mall |
45.40 | 525 | 12.6 | % | 44.70 | 522 | 12.6 | % | 1.6 | % | 0.6 | % | 0.0 | % | ||||||||||||||||||||||||||||||
Woodland Mall |
40.66 | 508 | 13.0 | % | 44.28 | 472 | 13.0 | % | -8.2 | % | 7.6 | % | 0.0 | % | ||||||||||||||||||||||||||||||
Jacksonville Mall |
33.08 | 487 | 10.4 | % | 33.04 | 496 | 10.0 | % | 0.1 | % | -1.8 | % | 0.4 | % | ||||||||||||||||||||||||||||||
Sales per square foot between $350 - $400 |
37.6 | % | ||||||||||||||||||||||||||||||||||||||||||
Willow Grove Park |
43.91 | 398 | 16.7 | % | 43.58 | 384 | 16.7 | % | 0.8 | % | 3.6 | % | 0.0 | % | ||||||||||||||||||||||||||||||
Dartmouth Mall |
30.07 | 398 | 11.5 | % | 29.62 | 350 | 12.6 | % | 1.5 | % | 13.7 | % | -1.1 | % | ||||||||||||||||||||||||||||||
The Mall at Prince Georges |
36.73 | 390 | 13.7 | % | 36.51 | 369 | 15.3 | % | 0.6 | % | 5.7 | % | -1.6 | % | ||||||||||||||||||||||||||||||
Patrick Henry Mall |
40.34 | 389 | 13.9 | % | 39.05 | 407 | 13.3 | % | 3.3 | % | -4.4 | % | 0.6 | % | ||||||||||||||||||||||||||||||
Moorestown Mall |
35.84 | 376 | 15.2 | % | 36.73 | 366 | 15.4 | % | -2.4 | % | 2.7 | % | -0.2 | % | ||||||||||||||||||||||||||||||
Valley View Mall |
29.70 | 366 | 11.9 | % | 30.49 | 360 | 11.9 | % | -2.6 | % | 1.7 | % | 0.0 | % | ||||||||||||||||||||||||||||||
Valley Mall |
25.76 | 366 | 11.0 | % | 26.43 | 303 | 12.2 | % | -2.5 | % | 20.8 | % | -1.2 | % | ||||||||||||||||||||||||||||||
Viewmont Mall |
29.59 | 364 | 13.0 | % | 29.76 | 365 | 13.1 | % | -0.6 | % | -0.3 | % | -0.1 | % | ||||||||||||||||||||||||||||||
Wyoming Valley Mall |
31.26 | 364 | 12.2 | % | 31.17 | 362 | 12.8 | % | 0.3 | % | 0.6 | % | -0.6 | % | ||||||||||||||||||||||||||||||
The Gallery at Market East |
37.55 | 360 | 14.3 | % | 37.17 | 351 | 13.8 | % | 1.0 | % | 2.6 | % | 0.5 | % | ||||||||||||||||||||||||||||||
Springfield Mall |
34.24 | 355 | 14.4 | % | 33.76 | 336 | 17.1 | % | 1.4 | % | 5.7 | % | -2.7 | % | ||||||||||||||||||||||||||||||
Capital City Mall |
33.34 | 353 | 11.8 | % | 33.65 | 353 | 11.8 | % | -0.9 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||||||||||||
Sales per square foot between $300 - $349 |
16.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Francis Scott Key Mall |
27.40 | 334 | 11.5 | % | 26.83 | 326 | 11.7 | % | 2.1 | % | 2.5 | % | -0.2 | % | ||||||||||||||||||||||||||||||
Plymouth Meeting Mall |
31.11 | 326 | 10.4 | % | 31.58 | 277 | 11.0 | % | -1.5 | % | 17.7 | % | -0.6 | % | ||||||||||||||||||||||||||||||
Magnolia Mall |
28.50 | 324 | 13.2 | % | 26.80 | 311 | 13.4 | % | 6.4 | % | 4.2 | % | -0.2 | % | ||||||||||||||||||||||||||||||
Exton Square Mall |
36.33 | 323 | 13.7 | % | 37.90 | 317 | 14.9 | % | -4.1 | % | 1.9 | % | -1.2 | % | ||||||||||||||||||||||||||||||
Crossroads Mall |
20.76 | 322 | 9.1 | % | 22.35 | 301 | 9.7 | % | -7.1 | % | 7.0 | % | -0.6 | % | ||||||||||||||||||||||||||||||
Cumberland Mall |
28.98 | 312 | 13.5 | % | 28.08 | 297 | 14.6 | % | 3.2 | % | 5.1 | % | -1.1 | % | ||||||||||||||||||||||||||||||
Logan Valley Mall |
26.11 | 310 | 11.2 | % | 26.68 | 306 | 11.5 | % | -2.1 | % | 1.3 | % | -0.3 | % | ||||||||||||||||||||||||||||||
Sales per square foot under $300 |
19.1 | % | ||||||||||||||||||||||||||||||||||||||||||
Palmer Park Mall |
24.58 | 290 | 12.3 | % | 25.39 | 279 | 11.6 | % | -3.2 | % | 3.9 | % | 0.7 | % | ||||||||||||||||||||||||||||||
Gadsden Mall |
21.54 | 287 | 9.3 | % | 21.94 | 266 | 9.8 | % | -1.8 | % | 7.9 | % | -0.5 | % | ||||||||||||||||||||||||||||||
Uniontown Mall |
22.53 | 287 | 10.7 | % | 22.68 | 279 | 11.0 | % | -0.6 | % | 2.9 | % | -0.3 | % | ||||||||||||||||||||||||||||||
Wiregrass Commons Mall |
26.77 | 282 | 11.5 | % | 26.86 | 284 | 11.3 | % | -0.3 | % | -0.7 | % | 0.2 | % | ||||||||||||||||||||||||||||||
New River Valley Mall |
24.62 | 282 | 10.6 | % | 25.96 | 273 | 10.1 | % | -5.2 | % | 3.3 | % | 0.5 | % | ||||||||||||||||||||||||||||||
Nittany Mall |
21.66 | 276 | 11.2 | % | 22.43 | 281 | 11.0 | % | -3.4 | % | -1.8 | % | 0.2 | % | ||||||||||||||||||||||||||||||
North Hanover Mall |
26.66 | 268 | 12.5 | % | 27.58 | 271 | 12.5 | % | -3.4 | % | -1.1 | % | 0.0 | % | ||||||||||||||||||||||||||||||
Lycoming Mall |
21.40 | 262 | 10.4 | % | 21.74 | 249 | 10.3 | % | -1.6 | % | 5.2 | % | 0.1 | % | ||||||||||||||||||||||||||||||
Beaver Valley Mall |
22.02 | 246 | 13.7 | % | 22.09 | 250 | 14.2 | % | -0.3 | % | -1.6 | % | -0.5 | % | ||||||||||||||||||||||||||||||
Orlando Fashion Square |
29.81 | 241 | 19.2 | % | 34.42 | 223 | 18.5 | % | -13.4 | % | 8.1 | % | 0.7 | % | ||||||||||||||||||||||||||||||
South Mall |
24.04 | 239 | 12.2 | % | 23.13 | 232 | 12.2 | % | 3.9 | % | 3.0 | % | 0.0 | % | ||||||||||||||||||||||||||||||
Washington Crown Center |
19.90 | 239 | 11.8 | % | 21.01 | 235 | 11.5 | % | -5.3 | % | 1.7 | % | 0.3 | % | ||||||||||||||||||||||||||||||
Chambersburg Mall |
22.53 | 236 | 9.9 | % | 26.01 | 240 | 9.5 | % | -13.4 | % | -1.7 | % | 0.4 | % | ||||||||||||||||||||||||||||||
Phillipsburg Mall |
23.96 | 227 | 12.3 | % | 24.73 | 220 | 12.1 | % | -3.1 | % | 3.2 | % | 0.2 | % | ||||||||||||||||||||||||||||||
Voorhees Town Center |
32.67 | 212 | 12.5 | % | 33.95 | 204 | 13.0 | % | -3.8 | % | 3.9 | % | -0.5 | % | ||||||||||||||||||||||||||||||
Malls weighted average |
$ | 32.40 | $ | 359 | 12.8 | % | $ | 32.65 | $ | 344 | 13.1 | % | -0.8 | % | 4.4 | % | -0.3 | % | ||||||||||||||||||||||||||
Consolidated Properties |
$ | 31.54 | $ | 348 | 12.7 | % | $ | 31.87 | $ | 333 | 13.0 | % | -1.0 | % | 4.5 | % | -0.3 | % | ||||||||||||||||||||||||||
Unconsolidated Properties |
$ | 41.73 | $ | 468 | 13.1 | % | $ | 41.02 | $ | 458 | 13.7 | % | 1.7 | % | 2.2 | % | -0.6 | % | ||||||||||||||||||||||||||
Same Properties |
$ | 32.40 | $ | 359 | 12.8 | % | $ | 32.65 | $ | 344 | 13.1 | % | -0.8 | % | 4.4 | % | -0.3 | % |
(1) | Average base rent includes all non-anchor space owned by the Company and leased to tenants that lease individual spaces of 10,000 square feet or less and pay fixed rent. |
(2) | Based on reported sales by all comparable non-anchor tenants that lease individual spaces of 10,000 square feet or less and have occupied the space for at least 24 months. |
Page 13
Pennsylvania Real Estate Investment Trust
Mall Occupancy (1) - Owned GLA
June 30, 2011 | June 30, 2010 | Change | ||||||||||
Total | Non-Anchor | Total | Non-Anchor | Total | Non-Anchor | |||||||
Beaver Valley Mall |
89.4% | 77.2% | 89.2% | 76.9% | 0.2% | 0.3% | ||||||
Capital City Mall |
97.3% | 95.3% | 96.5% | 94.0% | 0.8% | 1.3% | ||||||
Chambersburg Mall |
84.3% | 66.5% | 86.9% | 72.0% | -2.6% | -5.5% | ||||||
Cherry Hill Mall |
93.0% | 91.6% | 90.3% | 88.3% | 2.7% | 3.3% | ||||||
Crossroads Mall |
88.9% | 74.6% | 87.0% | 69.9% | 1.9% | 4.7% | ||||||
Cumberland Mall |
92.3% | 87.3% | 94.3% | 90.5% | -2.0% | -3.2% | ||||||
Dartmouth Mall |
96.0% | 93.4% | 95.0% | 91.7% | 1.0% | 1.7% | ||||||
Exton Square Mall |
91.7% | 81.8% | 90.6% | 79.3% | 1.1% | 2.5% | ||||||
Francis Scott Key Mall |
98.6% | 97.7% | 98.1% | 96.8% | 0.5% | 0.9% | ||||||
Gadsden Mall |
92.6% | 81.5% | 93.0% | 82.5% | -0.4% | -1.0% | ||||||
The Gallery at Market East (2) |
61.3% | 77.4% | 60.5% | 75.5% | 0.8% | 1.9% | ||||||
Jacksonville Mall |
99.1% | 98.3% | 98.4% | 96.8% | 0.7% | 1.5% | ||||||
Lehigh Valley Mall |
96.1% | 94.6% | 95.2% | 93.4% | 0.9% | 1.2% | ||||||
Logan Valley Mall |
95.0% | 88.1% | 94.8% | 87.4% | 0.2% | 0.7% | ||||||
Lycoming Mall |
95.9% | 92.3% | 94.8% | 90.3% | 1.1% | 2.0% | ||||||
Magnolia Mall |
98.3% | 96.1% | 95.8% | 90.5% | 2.5% | 5.6% | ||||||
Moorestown Mall |
91.2% | 80.2% | 90.4% | 78.4% | 0.8% | 1.8% | ||||||
New River Valley Mall |
97.6% | 96.0% | 95.5% | 92.5% | 2.1% | 3.5% | ||||||
Nittany Mall |
94.0% | 87.8% | 94.3% | 88.5% | -0.3% | -0.7% | ||||||
North Hanover Mall |
91.8% | 80.4% | 91.5% | 79.7% | 0.3% | 0.7% | ||||||
Orlando Fashion Square |
92.0% | 83.1% | 88.8% | 76.1% | 3.2% | 7.0% | ||||||
Palmer Park Mall |
96.3% | 88.1% | 95.3% | 84.9% | 1.0% | 3.2% | ||||||
Patrick Henry Mall |
92.4% | 85.3% | 98.3% | 96.6% | -5.9% | -11.3% | ||||||
Phillipsburg Mall |
88.0% | 72.4% | 91.5% | 80.6% | -3.5% | -8.2% | ||||||
Plymouth Meeting Mall |
82.7% | 73.7% | 85.4% | 77.8% | -2.7% | -4.1% | ||||||
The Mall at Prince Georges |
95.0% | 89.5% | 94.3% | 88.0% | 0.7% | 1.5% | ||||||
South Mall |
89.5% | 84.0% | 89.6% | 84.2% | -0.1% | -0.2% | ||||||
Springfield Mall |
92.8% | 92.8% | 93.8% | 93.8% | -1.0% | -1.0% | ||||||
Uniontown Mall |
85.4% | 74.2% | 93.5% | 83.5% | -8.1% | -9.3% | ||||||
Valley Mall |
93.7% | 89.2% | 95.9% | 93.0% | -2.2% | -3.8% | ||||||
Valley View Mall |
96.3% | 94.9% | 96.1% | 94.5% | 0.2% | 0.4% | ||||||
Viewmont Mall |
99.4% | 98.5% | 97.8% | 94.4% | 1.6% | 4.1% | ||||||
Voorhees Town Center |
60.5% | 59.9% | 65.0% | 64.5% | -4.5% | -4.6% | ||||||
Washington Crown Center |
89.3% | 80.3% | 85.1% | 72.5% | 4.2% | 7.8% | ||||||
Willow Grove Park (3) |
70.2% | 92.8% | 69.2% | 92.8% | 1.0% | 0.0% | ||||||
Wiregrass Commons Mall |
87.5% | 81.9% | 86.9% | 81.0% | 0.6% | 0.9% | ||||||
Woodland Mall |
95.1% | 95.1% | 90.4% | 90.4% | 4.7% | 4.7% | ||||||
Wyoming Valley Mall |
96.5% | 90.1% | 96.7% | 90.5% | -0.2% | -0.4% | ||||||
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Malls weighted average (3) |
90.3% | 86.3% | 90.2% | 85.9% | 0.1% | 0.4% | ||||||
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Consolidated Properties |
90.1% | 85.8% | 90.0% | 85.4% | 0.1% | 0.4% | ||||||
Unconsolidated Properties |
95.3% | 94.1% | 94.9% | 93.5% | 0.4% | 0.6% | ||||||
Same Properties |
90.3% | 86.3% | 90.2% | 85.9% | 0.1% | 0.4% |
(1) | Occupancy for both periods presented includes all tenants irrespective of the terms of their agreement. Previously, occupancy was reported excluding tenants under agreements with initial terms of less than one year. |
(2) | The total occupancy percentage for The Gallery at Market East includes 328,390 sf of the former Strawbridges store that is currently vacant, pending redevelopment. This vacant department store represents 30.3% of the owned mall GLA as of June 30, 2011 and 2010. |
(3) | The total occupancy percentage for Willow Grove Park includes the former Strawbridges store that is currently vacant. This vacant department store represents 26.6% and 26.2% of the owned mall GLA as of June 30, 2011 and June 30, 2010, respectively. |
Page 14
Pennsylvania Real Estate Investment Trust
Strip and Power Center Rent Per Square Foot and Occupancy Percentages
June 30, 2011 | June 30, 2010 | Change | ||||||||||||||||||||
Avg | Occupancy (1) | Avg | Occupancy (1) | Avg | Occupancy (1) | |||||||||||||||||
Base Rent | Total | Non-Anchor | Base Rent | Total | Non-Anchor | Base Rent | Total | Non-Anchor | ||||||||||||||
Christiana Center |
$ | 20.16 | 96.0% | 89.1% | $ | 19.96 | 98.8% | 96.8% | 1.0% | -2.8% | -7.7% | |||||||||||
The Commons at Magnolia |
15.33 | 87.3% | 84.2% | 13.05 | 83.7% | 79.7% | 17.5% | 3.6% | 4.5% | |||||||||||||
Metroplex Shopping Center |
19.84 | 100.0% | 100.0% | 19.10 | 100.0% | 100.0% | 3.9% | 0.0% | 0.0% | |||||||||||||
The Court at Oxford Valley |
15.27 | 91.7% | 90.5% | 15.60 | 100.0% | 100.0% | -2.1% | -8.3% | -9.5% | |||||||||||||
Paxton Towne Centre |
15.26 | 100.0% | 100.0% | 15.44 | 98.2% | 97.3% | -1.2% | 1.8% | 2.7% | |||||||||||||
Red Rose Commons |
13.14 | 100.0% | 100.0% | 13.75 | 82.5% | 82.5% | -4.4% | 17.5% | 17.5% | |||||||||||||
Springfield Park |
21.35 | 98.2% | 94.9% | 20.90 | 98.2% | 94.9% | 2.2% | 0.0% | 0.0% | |||||||||||||
Whitehall Mall |
13.51 | 84.8% | 67.7% | 12.40 | 91.6% | 82.3% | 9.0% | -6.8% | -14.6% | |||||||||||||
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| ||||||||||||||||||
Weighted Average |
$ | 16.29 | 94.5% | 91.9% | $ | 16.07 | 95.5% | 93.4% | 1.4% | -1.0% | -1.5% | |||||||||||
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Consolidated Properties |
$ | 16.33 | 97.0% | 94.8% | $ | 16.15 | 96.6% | 94.1% | 1.1% | 0.4% | 0.7% | |||||||||||
Unconsolidated Properties |
$ | 16.28 | 93.4% | 90.9% | $ | 16.04 | 95.0% | 93.1% | 1.5% | -1.6% | -2.2% | |||||||||||
Same Properties |
$ | 16.29 | 94.5% | 91.9% | $ | 16.07 | 95.5% | 93.4% | 1.4% | -1.0% | -1.5% |
(1) | Occupancy for both periods presented includes all tenants irrespective of the terms of their agreement. Previously, occupancy was reported excluding tenants under agreements with initial terms of less than one year. |
Page 15
Pennsylvania Real Estate Investment Trust
Top Twenty Tenants (by share of PREITs Annualized Minimum Rent)
(dollars in thousands)
Paying Minimum Rent | Paying Percentage of Sales in lieu of Minimum Rent (2) |
Total | Minimum Rent | |||||||||||||||||||||||||||
Tenant (1) |
Number of Locations |
GLA | Number of Locations |
GLA | Total Number of Locations |
Total GLA | Annualized Minimum Rent |
PREITs share of Annualized Minimum Rent (3) |
Percent of PREITs Total Retail Minimum Rent |
|||||||||||||||||||||
Gap, Inc. |
46 | 582,744 | 5 | 51,516 | 51 | 634,260 | $ | 12,340 | $ | 11,312 | 3.65% | |||||||||||||||||||
Foot Locker, Inc. |
62 | 326,377 | 9 | 29,542 | 71 | 355,919 | 8,150 | 7,697 | 2.48% | |||||||||||||||||||||
JCPenney Company, Inc. |
24 | 2,369,736 | 6 | 824,327 | 30 | 3,194,063 | 7,526 | 7,526 | 2.43% | |||||||||||||||||||||
Limited Brands, Inc. |
57 | 275,395 | 15 | 48,323 | 72 | 323,718 | 7,487 | 7,041 | 2.27% | |||||||||||||||||||||
American Eagle Outfitters, Inc. |
40 | 218,381 | 2 | 8,840 | 42 | 227,221 | 6,842 | 6,534 | 2.11% | |||||||||||||||||||||
Zale Corporation |
74 | 55,498 | - | - | 74 | 55,498 | 5,691 | 5,386 | 1.74% | |||||||||||||||||||||
Sears Holding Corporation |
24 | 2,796,396 | 5 | 880,777 | 29 | 3,677,173 | 5,445 | 5,302 | 1.71% | |||||||||||||||||||||
Signet Jewelers Limited |
38 | 58,490 | - | - | 38 | 58,490 | 4,426 | 4,271 | 1.38% | |||||||||||||||||||||
Bain Capital LLC (4) |
29 | 585,361 | 4 | 8,075 | 33 | 593,436 | 4,147 | 4,002 | 1.29% | |||||||||||||||||||||
Dicks Sporting Goods, Inc. |
8 | 371,675 | 1 | 50,484 | 9 | 422,159 | 4,687 | 3,967 | 1.28% | |||||||||||||||||||||
Luxottica Group S.p.A. |
47 | 117,318 | 3 | 9,062 | 50 | 126,380 | 4,239 | 3,940 | 1.27% | |||||||||||||||||||||
Golden Gate Capital (5) |
15 | 133,715 | 4 | 31,799 | 19 | 165,514 | 4,094 | 3,697 | 1.19% | |||||||||||||||||||||
Abercrombie & Fitch Co. |
19 | 128,443 | - | - | 19 | 128,443 | 3,872 | 3,490 | 1.13% | |||||||||||||||||||||
Genesco, Inc. |
58 | 76,938 | 3 | 3,052 | 61 | 79,990 | 3,426 | 3,284 | 1.06% | |||||||||||||||||||||
Aeropostale, Inc. |
33 | 115,299 | 3 | 10,619 | 36 | 125,918 | 3,350 | 3,123 | 1.01% | |||||||||||||||||||||
Commonwealth of Pennsylvania |
2 | 229,244 | - | - | 2 | 229,244 | 3,085 | 3,085 | 0.99% | |||||||||||||||||||||
Barnes & Noble, Inc. |
9 | 271,086 | - | - | 9 | 271,086 | 4,105 | 3,023 | 0.97% | |||||||||||||||||||||
Hallmark Cards, Inc. |
32 | 129,143 | 7 | 30,277 | 39 | 159,420 | 2,956 | 2,784 | 0.90% | |||||||||||||||||||||
The Bon-Ton Stores, Inc. |
13 | 1,008,613 | 1 | 41,344 | 14 | 1,049,957 | 2,729 | 2,729 | 0.88% | |||||||||||||||||||||
Pacific Sunwear, Inc. |
26 | 97,685 | 3 | 10,611 | 29 | 108,296 | 2,836 | 2,676 | 0.86% | |||||||||||||||||||||
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Total Top 20 Tenants |
656 | 9,947,537 | 71 | 2,038,648 | 727 | 11,986,185 | $ | 101,433 | $ | 94,869 | 30.59% | |||||||||||||||||||
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Total Leases |
3,094 | $ | 310,199 | 100.00% | ||||||||||||||||||||||||||
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(1) | Tenant includes all brands and concepts of the tenant. |
(2) | Income from lease(s) in which tenant pays percentage of sales in lieu of minimum rent or common area costs are not included in annualized minimum rent. |
(3) | Includes PREITs proportionate share of tenant rents from partnership properties based on PREITs ownership percentage in the respective partnerships. |
(4) | Consists of 18 Gymboree stores, nine Crazy 8 stores, and six Burlington Coat Factory stores. |
(5) | Consists of 18 Express stores and one J. Jill store. |
Page 16
Pennsylvania Real Estate Investment Trust
Lease Expirations as of June 30, 2011
(dollars in thousands except psf amounts)
Non-Anchors(1) | ||||||||||||||||||||||||||||||||
Gross Leasable Area | Annualized Minimum Rent | |||||||||||||||||||||||||||||||
Lease Expiration Year |
Number of Leases Expiring |
Expiring GLA | Percent of Total | Minimum Rent in Expiring Year |
PREITs Share of Minimum Rent in Expiring Year (2) |
Percent of PREITs Total |
Average Expiring Minimum Rent psf |
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Holdover |
215 | 716,803 | 6.0% | $ | 15,091 | $ | 14,675 | 5.4% | $ | 21.05 | ||||||||||||||||||||||
2011 |
317 | 686,498 | 5.7% | 18,905 | 18,214 | 6.7% | 27.54 | |||||||||||||||||||||||||
2012 |
522 | 1,724,448 | 14.4% | 40,772 | 37,758 | 13.9% | 23.64 | |||||||||||||||||||||||||
2013 |
375 | 1,200,724 | 10.0% | 28,029 | 26,328 | 9.7% | 23.34 | |||||||||||||||||||||||||
2014 |
271 | 939,719 | 7.8% | 22,853 | 20,774 | 7.7% | 24.32 | |||||||||||||||||||||||||
2015 |
251 | 1,229,730 | 10.2% | 27,821 | 24,909 | 9.2% | 22.62 | |||||||||||||||||||||||||
2016 |
271 | 1,225,493 | 10.2% | 33,667 | 30,074 | 11.1% | 27.47 | |||||||||||||||||||||||||
2017 |
191 | 876,640 | 7.3% | 23,205 | 20,636 | 7.6% | 26.47 | |||||||||||||||||||||||||
2018 |
184 | 929,410 | 7.7% | 25,173 | 22,886 | 8.4% | 27.08 | |||||||||||||||||||||||||
2019 |
140 | 609,468 | 5.1% | 18,319 | 17,417 | 6.4% | 30.06 | |||||||||||||||||||||||||
2020 |
132 | 912,748 | 7.6% | 20,059 | 18,868 | 7.0% | 21.98 | |||||||||||||||||||||||||
Thereafter |
117 | 949,256 | 8.0% | 20,352 | 18,722 | 6.9% | 21.44 | |||||||||||||||||||||||||
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Total/Average |
2,986 | 12,000,937 | 100.0% | $ | 294,245 | $ | 271,262 | 100.0% | $ | 24.52 | ||||||||||||||||||||||
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Anchors(1) | ||||||||||||||||||||||||||||||||
Gross Leasable Area | Annualized Minimum Rent | |||||||||||||||||||||||||||||||
Lease Expiration Year |
Number of Leases Expiring (3) |
Expiring GLA | Percent of Total | Minimum Rent in Expiring Year |
PREITs Share of Minimum Rent in Expiring Year (2) |
Percent of PREITs Total |
Average Expiring Minimum Rent psf |
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2012 |
5 | 609,198 | 5.4% | $ | 842 | $ | 806 | 2.1% | $ | 1.38 | ||||||||||||||||||||||
2013 |
14 | 1,135,570 | 10.1% | 4,593 | 4,593 | 11.8% | 4.04 | |||||||||||||||||||||||||
2014 |
15 | 1,551,546 | 13.9% | 4,249 | 3,787 | 9.7% | 2.74 | |||||||||||||||||||||||||
2015 |
18 | 1,715,835 | 15.3% | 5,115 | 5,115 | 13.1% | 2.98 | |||||||||||||||||||||||||
2016 |
20 | 1,895,436 | 16.9% | 4,624 | 4,624 | 11.9% | 2.44 | |||||||||||||||||||||||||
2017 |
6 | 631,646 | 5.6% | 3,148 | 2,733 | 7.0% | 4.98 | |||||||||||||||||||||||||
2018 |
6 | 777,965 | 6.9% | 4,085 | 4,085 | 10.5% | 5.25 | |||||||||||||||||||||||||
2019 |
7 | 770,343 | 6.9% | 2,014 | 2,014 | 5.2% | 2.61 | |||||||||||||||||||||||||
2020 |
3 | 277,729 | 2.5% | 1,192 | 1,192 | 3.1% | 4.29 | |||||||||||||||||||||||||
Thereafter |
14 | 1,836,725 | 16.5% | 11,272 | 9,988 | 25.6% | 6.14 | |||||||||||||||||||||||||
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Total/Average |
108 | 11,201,993 | 100.0% | $ | 41,135 | $ | 38,937 | 100.0% | $ | 3.67 | ||||||||||||||||||||||
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(1) | Only includes owned space. |
(2) | Includes PREITs proportionate share of tenant rent from partnership properties based on PREITs ownership percentage in the respective partnerships. |
(3) | Accounts for all contiguous anchor space as one lease. |
Page 17
Pennsylvania Real Estate Investment Trust Retail Gross Leasable Area Occupancy Summary as of June 30, 2011
|
Owned GLA | ||||||||||||||||||||||||||||
Occupied | Vacant | |||||||||||||||||||||||||||
Anchor | Non-Anchor | Anchor | Non-Anchor | |||||||||||||||||||||||||
Large Format (1) | Small Shop (2) | GLA Not Owned | Total GLA | |||||||||||||||||||||||||
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Malls |
||||||||||||||||||||||||||||
Beaver Valley Mall |
511,267 | 148,740 | 195,741 | - | 101,561 | 204,770 | 1,162,079 | |||||||||||||||||||||
Capital City Mall |
204,301 | 63,586 | 207,514 | - | 13,372 | 120,000 | 608,773 | |||||||||||||||||||||
Chambersburg Mall |
241,690 | 19,651 | 121,836 | - | 71,160 | - | 454,337 | |||||||||||||||||||||
Cherry Hill Mall (3) |
138,000 | 204,015 | 421,985 | - | 57,462 | 478,885 | 1,300,347 | |||||||||||||||||||||
Crossroads Mall |
254,211 | 12,231 | 135,947 | - | 50,440 | - | 452,829 | |||||||||||||||||||||
Cumberland Mall |
264,348 | 212,538 | 140,834 | - | 51,497 | 273,230 | 942,447 | |||||||||||||||||||||
Dartmouth Mall |
208,460 | 142,274 | 158,774 | - | 21,432 | 140,000 | 670,940 | |||||||||||||||||||||
Exton Square Mall |
440,301 | 26,617 | 275,174 | - | 67,286 | 277,468 | 1,086,846 | |||||||||||||||||||||
Francis Scott Key Mall |
222,176 | 140,616 | 201,893 | - | 7,943 | 139,333 | 711,961 | |||||||||||||||||||||
Gadsden Mall |
300,960 | 65,746 | 98,523 | - | 37,359 | - | 502,588 | |||||||||||||||||||||
The Gallery at Market East |
350,115 | 73,975 | 240,208 | 328,390 | 91,737 | - | 1,084,425 | |||||||||||||||||||||
Jacksonville Mall |
242,115 | 98,693 | 143,677 | - | 4,224 | - | 488,709 | |||||||||||||||||||||
Lehigh Valley Mall |
212,000 | 171,800 | 371,257 | - | 30,982 | 371,986 | 1,158,025 | |||||||||||||||||||||
Logan Valley Mall |
454,387 | 43,943 | 243,076 | - | 38,872 | - | 780,278 | |||||||||||||||||||||
Lycoming Mall |
333,413 | 182,268 | 170,657 | - | 29,575 | 120,000 | 835,913 | |||||||||||||||||||||
Magnolia Mall |
343,118 | 86,608 | 167,381 | - | 10,262 | - | 607,369 | |||||||||||||||||||||
Moorestown Mall |
408,356 | 98,682 | 166,056 | - | 65,156 | 321,2002 | 1,059,450 | |||||||||||||||||||||
New River Valley Mall |
175,306 | 134,996 | 120,303 | - | 10,641 | - | 441,246 | |||||||||||||||||||||
Nittany Mall |
221,462 | 12,500 | 176,684 | - | 26,398 | 95,000 | 532,044 | |||||||||||||||||||||
North Hanover Mall |
206,792 | 21,047 | 98,758 | - | 29,166 | - | 355,763 | |||||||||||||||||||||
Orlando Fashion Square |
491,999 | 149,696 | 216,333 | - | 74,322 | 155,576 | 1,087,926 | |||||||||||||||||||||
Palmer Park Mall |
314,235 | - | 126,654 | - | 17,042 | - | 457,931 | |||||||||||||||||||||
Patrick Henry Mall |
279,619 | 16,741 | 235,498 | - | 43,581 | 140,000 | 715,439 | |||||||||||||||||||||
Phillipsburg Mall |
326,552 | 42,021 | 139,317 | - | 69,248 | - | 577,138 | |||||||||||||||||||||
Plymouth Meeting Mall (4) |
253,584 | 164,842 | 194,528 | - | 128,235 | 214,635 | 955,824 | |||||||||||||||||||||
The Mall at Prince Georges |
479,619 | 119,073 | 273,925 | - | 46,048 | - | 918,665 | |||||||||||||||||||||
South Mall |
139,691 | 131,434 | 91,544 | - | 42,530 | - | 405,199 | |||||||||||||||||||||
Springfield Mall |
- | - | 206,288 | - | 16,025 | 387,899 | 610,212 | |||||||||||||||||||||
Uniontown Mall |
391,096 | 49,888 | 155,824 | 30,282 | 71,495 | - | 698,585 | |||||||||||||||||||||
Valley Mall |
280,549 | 125,334 | 225,130 | - | 42,469 | 243,400 | 916,882 | |||||||||||||||||||||
Valley View Mall |
96,357 | 74,148 | 160,567 | - | 12,594 | 254,596 | 598,262 | |||||||||||||||||||||
Viewmont Mall |
386,262 | 82,893 | 154,352 | - | 3,687 | 120,000 | 747,194 | |||||||||||||||||||||
Voorhees Town Center (5) |
4,404 | 67,478 | 108,367 | - | 117,613 | 420,838 | 718,700 | |||||||||||||||||||||
Washington Crown Center |
245,401 | 79,085 | 154,171 | - | 57,186 | 140,095 | 675,938 | |||||||||||||||||||||
Willow Grove Park |
225,000 | 37,260 | 284,852 | 206,834 | 24,937 | 413,121 | 1,192,004 | |||||||||||||||||||||
Wiregrass Commons |
94,686 | 10,345 | 162,486 | - | 38,278 | 332,152 | 637,947 | |||||||||||||||||||||
Woodland Mall |
- | 120,959 | 292,318 | - | 21,363 | 725,187 | 1,159,827 | |||||||||||||||||||||
Wyoming Valley Mall |
592,110 | 90,851 | 196,772 | - | 31,567 | - | 911,300 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Malls (38 properties) |
10,333,942 | 3,322,574 | 7,235,204 | 565,506 | 1,674,745 | 6,089,371 | 29,221,342 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Strip and Power Centers |
||||||||||||||||||||||||||||
Christiana Center |
190,814 | 68,132 | 31,288 | - | 12,200 | - | 302,434 | |||||||||||||||||||||
The Commons at Magnolia |
20,631 | 28,618 | 41,867 | - | 13,216 | 126,200 | 230,532 | |||||||||||||||||||||
Metroplex Shopping Center |
67,185 | 362,593 | 47,683 | - | - | 300,729 | 778,190 | |||||||||||||||||||||
The Court at Oxford Valley |
59,620 | 323,336 | 36,154 | - | 37,793 | 247,623 | 704,526 | |||||||||||||||||||||
Paxton Towne Centre |
151,627 | 221,425 | 71,380 | - | - | 273,0582 | 717,490 | |||||||||||||||||||||
Red Rose Commons |
- | 248,085 | 15,206 | - | - | 199,590 | 462,881 | |||||||||||||||||||||
Springfield Park |
83,539 | 20,500 | 22,443 | - | 2,329 | 145,669 | 274,480 | |||||||||||||||||||||
Whitehall Mall |
294,635 | 135,271 | 42,691 | - | 84,904 | - | 557,501 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Strip and Power Centers (8 properties) |
868,051 | 1,407,960 | 308,712 | - | 150,442 | 1,292,869 | 4,028,034 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
CONSOLIDATED PROPERTIES |
10,485,014 | 3,468,949 | 6,802,194 | 565,506 | 1,653,154 | 5,728,744 | 28,703,561 | |||||||||||||||||||||
UNCONSOLIDATED PROPERTIES |
716,979 | 1,261,585 | 741,722 | - | 172,033 | 1,653,496 | 4,545,815 | |||||||||||||||||||||
TOTAL PROPERTIES |
11,201,993 | 4,730,534 | 7,543,916 | 565,506 | 1,825,187 | 7,382,240 | 33,249,376 |
(1) Includes tenants greater than 10,000 square feet.
(2) Includes tenants less than 10,000 square feet.
(3) Additional 24,588 sf has been entitled but not yet built.
(4) Additional 14,316 sf has been entitled but not yet built.
(5) Additional 19,101 sf has been built but not commissioned, and 128,514 sf has been entitled but not yet built.
Page 18
Pennsylvania Real Estate Investment Trust
Property Information as of June 30, 2011
Properties | Ownership Interest |
Date Acquired | Year Built/ Last Renovated |
Anchors / Major Tenants | Lease Expiration | |||||
MALLS |
||||||||||
Beaver Valley Mall Monaca, PA |
100% | 2002 | 1970/1991 | Boscovs jcpenney Macys Sears |
9/30/18 9/30/17 (1) 8/15/16 | |||||
Capital City Mall Camp Hill, PA |
100% | 2003 | 1974/2005 | jcpenney Macys Sears |
11/30/15 (1) 7/28/14 | |||||
Chambersburg Mall Chambersburg, PA |
100% | 2003 | 1982 | Bon-Ton Burlington Coat Factory jcpenney Sears |
1/28/16 1/31/19 3/31/12 2/9/15 | |||||
Cherry Hill Mall Cherry Hill, NJ |
100% | 2003 | 1961/2009 | The Container Store Crate and Barrel jcpenney Macys Nordstrom |
2/28/18 1/31/23 (1) (1) 2/28/25 | |||||
Crossroads Mall (2) Beckley, WV |
100% | 2003 | 1981 | Belk jcpenney Sears |
11/5/14 12/31/16 3/31/16 | |||||
Cumberland Mall Vineland, NJ |
100% | 2005 | 1973/2003 | Best Buy BJs Boscovs Burlington Coat Factory Home Depot jcpenney |
1/31/16 (1) (1) 4/30/19 1/31/19 11/30/13 | |||||
Dartmouth Mall Dartmouth, MA |
100% | 1997 | 1971/2000 | jcpenney Macys Sears |
7/31/14 (1) 4/12/16 | |||||
Exton Square Mall (2) Exton, PA |
100% | 2003 | 1973/2000 | Boscovs jcpenney K-Mart Macys Sears |
10/31/19 5/31/20 (1) (1) 10/6/19 | |||||
Francis Scott Key Mall Frederick, MD |
100% | 2003 | 1978/1991 | Barnes & Noble jcpenney Macys Sears Value City Furniture |
4/30/17 9/30/16 (1) 7/31/13 1/31/19 | |||||
Gadsden Mall Gadsden, AL |
100% | 2005 | 1974/1990 | Belk jcpenney Sears |
7/31/14 1/31/29 3/5/14 | |||||
The Gallery at Market East (2) Philadelphia, PA |
100% | 2003 | 1977/1990 | Burlington Coat Factory Commonwealth of Pennsylvania |
2/28/32 6/30/29 | |||||
Jacksonville Mall Jacksonville, NC |
100% | 2003 | 1981/2008 | Barnes & Noble Belk jcpenney Sears |
5/31/18 8/21/16 8/31/15 8/4/16 | |||||
Lehigh Valley Mall (3) Allentown, PA |
50% | 1973 | 1977/2007 | Barnes & Noble Boscovs jcpenney Macys |
10/31/17 (1) (1) 7/31/12 | |||||
Logan Valley Mall Altoona, PA |
100% | 2003 | 1960/1997 | jcpenney Macys Sears |
1/31/17 1/31/15 10/31/16 | |||||
Lycoming Mall Pennsdale, PA |
100% | 2003 | 1978/2007 | Best Buy Bon-Ton Borders Burlington Coat Factory Dicks Sporting Goods jcpenney Macys Sears |
1/31/17 7/27/16 1/31/17 1/31/19 1/31/17 10/31/15 (1) 7/31/13 | |||||
Magnolia Mall Florence, SC |
100% | 1997 | 1979/2007 | Barnes & Noble Belk Best Buy Dicks Sporting Goods jcpenney Sears |
9/30/17 1/31/16 1/31/13 1/31/18 3/31/17 10/16/14 | |||||
Moorestown Mall Moorestown, NJ |
100% | 2003 | 1963/2008 | Boscovs Lord & Taylor Macys Sears |
10/31/15 (1) (1) 10/5/22 | |||||
New River Valley Mall Christiansburg, VA |
100% | 2003 | 1988/2007 | Belk Dicks Sporting Goods jcpenney Regal Cinemas Sears |
4/19/14 1/31/17 3/31/13 4/30/22 8/2/13 |
Page 19
Pennsylvania Real Estate Investment Trust
Property Information as of June 30, 2011 (continued)
Properties | Ownership Interest |
Date Acquired | Year Built/Last Renovated |
Anchors / Major Tenants | Lease Expiration | |||||
Nittany Mall State College, PA |
100% | 2003 | 1968/1990 | Bon-Ton jcpenney Macys Sears |
1/31/13 7/31/15 (1) 8/28/15 | |||||
North Hanover Mall Hanover, PA |
100% | 2003 | 1967/1999 | Dicks Sporting Goods jcpenney Sears |
1/31/18 1/31/16 11/30/14 | |||||
Orlando Fashion Square (2) Orlando, FL |
100% | 2004 | 1973/2003 | Dillards jcpenney Macys Sears |
1/31/14 4/30/13 10/30/71 (1) | |||||
Palmer Park Mall Easton, PA |
100% | 1972/2003 | 1972/1998 | Bon-Ton Boscovs |
7/25/14 10/31/18 | |||||
Patrick Henry Mall Newport News, VA |
100% | 2003 | 1988/2005 | Dicks Sporting Goods Dillards jcpenney Macys |
1/31/22 9/22/13 10/31/15 (1) | |||||
Phillipsburg Mall Phillipsburg, NJ |
100% | 2003 | 1989/2003 | Bon-Ton jcpenney Kohls Sears |
1/31/15 3/31/13 1/31/25 4/30/14 | |||||
Plymouth Meeting Mall (2) Plymouth Meeting, PA |
100% | 2003 | 1966/2009 | AMC Theater Boscovs Macys Whole Foods |
12/31/18 10/31/16 (1) 11/30/29 | |||||
The Mall at Prince Georges Hyattsville, MD |
100% | 1998 | 1959/2004 | jcpenney Macys Marshalls Ross Dress for Less Target |
7/31/16 10/31/18 9/30/16 1/31/18 1/31/15 | |||||
South Mall Allentown, PA |
100% | 2003 | 1975/1992 | Bon-Ton Stein Mart |
1/30/16 10/31/16 | |||||
Springfield Mall Springfield, PA |
50% | 2005 | 1974/1997 | Macys Target |
(1) (1) | |||||
Uniontown Mall (2) Uniontown, PA |
100% | 2003 | 1972/1990 | Bon-Ton Burlington Coat Factory jcpenney Sears Teletech Customer Care |
1/30/16 1/31/19 10/31/15 2/25/13 6/30/13 | |||||
Valley Mall Hagerstown, MD |
100% | 2003 | 1974/1999 | Bon-Ton jcpenney Macys Sears |
1/31/14 10/31/14 (1) (1) | |||||
Valley View Mall La Crosse, WI |
100% | 2003 | 1980/2001 | Barnes & Noble Herbergers jcpenney Macys Sears |
1/31/17 (1) 7/31/15 (1) (1) | |||||
Viewmont Mall Scranton, PA |
100% | 2003 | 1968/2006 | jcpenney Macys Sears |
10/31/15 (1) 12/31/15 | |||||
Voorhees Town Center (2) Voorhees, NJ |
100% | 2003 | 1970/2007 | Boscovs Macys The Star Group Voorhees Town Hall |
(1) (1) 8/31/28 (1) | |||||
Washington Crown Center Washington, PA |
100% | 2003 | 1969/1999 | Bon-Ton Gander Mountain Sports Macys Sears |
1/31/15 7/24/13 (1) 8/17/14 | |||||
Willow Grove Park Willow Grove, PA |
100% | 2000/2003 | 1982/2001 | Bloomingdales The Cheesecake Factory Macys Sears |
(1) 1/31/28 1/31/22 (1) | |||||
Wiregrass Commons Mall Dothan, AL |
100% | 2003 | 1986/2008 | Belk Burlington Coat Factory Dillards jcpenney |
(1) 1/31/20 (1) (1) | |||||
Woodland Mall Grand Rapids, MI |
100% | 2005 | 1968/1998 | Apple Barnes & Noble jcpenney Kohls Macys Sears |
6/30/15 1/31/20 (1) (1) (1) (1) | |||||
Wyoming Valley Mall Wilkes-Barre, PA |
100% | 2003 | 1971/2006 | Bon-Ton jcpenney Macys Sears |
1/31/12 4/30/12 1/31/17 8/1/16 |
Page 20
Pennsylvania Real Estate Investment Trust
Property Information as of June 30, 2011 (continued)
Properties | Ownership Interest |
Date Acquired | Year Built/Last Renovated |
Anchors / Major Tenants | Lease Expiration | |||||
POWER CENTERS |
||||||||||
Christiana Center Newark, DE |
100% | 1998 | 1998 | Costco Dicks Sporting Goods |
9/30/18 11/30/13 | |||||
Metroplex Shopping Center (3) Plymouth Meeting, PA |
50% | 1999 | 2001 | Giant Food Store Lowes Target |
2/28/21 (1) (1) | |||||
The Court at Oxford Valley (3) Langhorne, PA |
50% | 1997 | 1996 | Best Buy BJs Dicks Sporting Goods Home Depot |
5/31/21 (1) 4/30/21 (1) | |||||
Paxton Towne Centre Harrisburg, PA |
100% | 1999 | 2001 | Costco Kohls Target Weis Markets |
(1) 1/30/21 (1) 11/30/20 | |||||
Red Rose Commons (3) Lancaster, PA |
50% | 1998 | 1998 | Home Depot Weis Markets |
(1) (1) | |||||
Whitehall Mall (3) Allentown, PA |
50% | 1964 | 1964/1998 | Bed, Bath & Beyond Kohls Sears |
1/31/15 3/9/17 9/18/21 | |||||
STRIP CENTERS | ||||||||||
The Commons at Magnolia Florence, SC |
100% | 1999 | 1991/2002 | Bed, Bath & Beyond Target |
1/31/15 (1) | |||||
Springfield Park Springfield, PA |
50% | 1997/1998 | 1997/1998 | Bed, Bath & Beyond LA Fitness Target |
1/31/14 3/31/17 (1) |
(1) | Space is not owned by PREIT. |
(2) | Property is subject to a ground lease. |
(3) | Property is managed by a third party. |
Page 21
Pennsylvania Real Estate Investment Trust
Proportionate Consolidation Method(1)
(in thousands, except per share amounts)
June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||
GAAP | Share of Unconsolidated Partnerships |
Total | GAAP | Share of Unconsolidated Partnerships |
Total | |||||||||||||||||||
ASSETS |
||||||||||||||||||||||||
Investments in real estate, at cost |
||||||||||||||||||||||||
Operating properties |
$ | 3,465,976 | $ | 210,854 | $ | ,676,830 | $ | 3,448,900 | $ | 210,505 | $ | 3,659,405 | ||||||||||||
Construction in progress |
117,908 | 810 | 118,718 | 121,547 | 753 | 122,300 | ||||||||||||||||||
Land held for development |
15,363 | - | 15,363 | 17,021 | - | 17,021 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total investments in real estate |
3,599,247 | 211,664 | 3,810,911 | 3,587,468 | 211,258 | 3,798,726 | ||||||||||||||||||
Accumulated depreciation |
(792,682 | ) | (70,273 | ) | (862,955 | ) | (729,086 | ) | (66,699 | ) | (795,785 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investments in real estate |
2,806,565 | 141,391 | 2,947,956 | 2,858,382 | 144,559 | 3,002,941 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Investments in partnerships, at equity |
25,784 | (25,784 | ) | - | 30,959 | (30,959 | ) | - | ||||||||||||||||
Other assets: |
||||||||||||||||||||||||
Cash and cash equivalents |
24,163 | 5,225 | 29,388 | 42,327 | 4,780 | 47,107 | ||||||||||||||||||
Rent and other receivables (2) |
29,263 | 6,407 | 35,670 | 40,732 | 6,390 | 47,122 | ||||||||||||||||||
Intangible assets, net |
12,636 | 230 | 12,866 | 15,787 | 288 | 16,075 | ||||||||||||||||||
Deferred costs and other assets, net |
87,081 | 8,953 | 96,034 | 91,930 | 8,304 | 100,234 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total other assets |
178,927 | (4,969 | ) | 173,958 | 221,735 | (11,197 | ) | 210,538 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total assets |
$ | 2,985,492 | $ | 136,422 | $ | 3,121,914 | $ | 3,080,117 | $ | 133,362 | $ | 3,213,479 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
LIABILITIES AND EQUITY |
||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||
Mortgage loans (including debt premium of $993 and $1,569 as of June 30, 2011 and December 31, 2010, respectively) |
$ | 1,733,356 | $ | 190,866 | $ | 1,924,222 | $ | 1,744,248 | $ | 175,693 | $ | 1,919,941 | ||||||||||||
Exchangeable notes (net of discount of $1,842 and $2,809 as of June 30, 2011 and December 31, 2010, respectively) |
135,058 | - | 135,058 | 134,091 | - | 134,091 | ||||||||||||||||||
Revolving Facility |
70,000 | - | 70,000 | - | - | - | ||||||||||||||||||
Term Loans |
240,000 | - | 240,000 | 347,200 | - | 347,200 | ||||||||||||||||||
Tenants deposits and deferred rent |
15,016 | 3,852 | 18,868 | 16,583 | 3,899 | 20,482 | ||||||||||||||||||
Distributions in excess of partnership investments |
56,248 | (56,248 | ) | - | 44,614 | (44,614 | ) | - | ||||||||||||||||
Fair value of derivative instruments |
25,456 | - | 25,456 | 27,233 | - | 27,233 | ||||||||||||||||||
Other liabilities |
52,309 | (2,048 | ) | 50,261 | 61,618 | (1,616 | ) | 60,002 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities |
2,327,443 | 136,422 | 2,463,865 | 2,375,587 | 133,362 | 2,508,949 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Equity: |
||||||||||||||||||||||||
Total equity |
658,049 | - | 658,049 | 704,530 | - | 704,530 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities and equity |
$ | 2,985,492 | $ | 136,422 | $ | 3,121,914 | $ | 3,080,117 | $ | 133,362 | $ | 3,213,479 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total includes PREITs proportionate share of partnership assets and liabilities grossed up to reflect the Companys share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Companys equity in these properties.
(2) Total includes straight line rent of $28.1 million ($25.6 million wholly owned, $2.5 million partnership) as of June 30, 2011, and $27.8 million ($25.2 million wholly owned, $2.6 million partnership) as of December 31, 2010.
Page 22
Pennsylvania Real Estate Investment Trust
Property Type(1)
(in thousands, except per share amounts)
June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||
Malls | Strip and Power Centers |
Corporate, Development and Other Properties |
Total | Malls | Strip and Power Centers |
Corporate, Development and Other Properties |
Total | |||||||||||||||||||||||||
ASSETS: |
||||||||||||||||||||||||||||||||
Investments in real estate: |
||||||||||||||||||||||||||||||||
Investments in real estate, at cost |
$ | 3,450,112 | $ | 220,477 | $ | 21,604 | $ | 3,692,193 | $ | 3,433,844 | $ | 219,321 | $ | 23,261 | $ | 3,676,426 | ||||||||||||||||
Construction in progress |
63,126 | - | 55,592 | 118,718 | 67,123 | - | 55,177 | 122,300 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total investments in real estate |
3,513,238 | 220,477 | 77,196 | 3,810,911 | 3,500,967 | 219,321 | 78,438 | 3,798,726 | ||||||||||||||||||||||||
Accumulated depreciation |
(787,602 | ) | (73,956 | ) | (1,397 | ) | (862,955 | ) | (724,708 | ) | (69,785 | ) | (1,292 | ) | (795,785 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investments in real estate |
2,725,636 | 146,521 | 75,799 | 2,947,956 | 2,776,259 | 149,536 | 77,146 | 3,002,941 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Other assets: |
||||||||||||||||||||||||||||||||
Cash and cash equivalents |
18,775 | 1,595 | 9,018 | 29,388 | 21,119 | 1,931 | 24,057 | 47,107 | ||||||||||||||||||||||||
Rent and other receivables (2) |
27,590 | 6,737 | 1,343 | 35,670 | 37,768 | 7,008 | 2,346 | 47,122 | ||||||||||||||||||||||||
Intangible assets, net |
5,568 | - | 7,298 | 12,866 | 8,725 | - | 7,350 | 16,075 | ||||||||||||||||||||||||
Deferred costs and other assets, net |
64,043 | 8,959 | 23,032 | 96,034 | 72,165 | 7,960 | 20,109 | 100,234 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total other assets |
115,976 | 17,291 | 40,691 | 173,958 | 139,777 | 16,899 | 53,862 | 210,538 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total assets |
$ | 2,841,612 | $ | 163,812 | $ | 116,490 | $ | 3,121,914 | $ | 2,916,036 | $ | 166,435 | $ | 131,008 | $ | 3,213,479 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
LIABILITIES AND EQUITY |
||||||||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||
Mortgage loans (including debt premium of $993 and $1,569 as of June 30, 2011 and December 31, 2010, respectively) |
$ | 1,731,883 | $ | 187,421 | $ | 4,918 | $ | 1,924,222 | $ | 1,743,470 | $ | 171,553 | $ | 4,918 | $ | 1,919,941 | ||||||||||||||||
Exchangeable notes (net of discount of $1,842 and $2,809 as of June 30, 2011 and December 31, 2010, respectively) |
- | - | 135,058 | 135,058 | - | - | 134,091 | 134,091 | ||||||||||||||||||||||||
Revolving Facility |
- | - | 70,000 | 70,000 | - | - | - | - | ||||||||||||||||||||||||
Term Loans |
- | - | 240,000 | 240,000 | - | - | 347,200 | 347,200 | ||||||||||||||||||||||||
Tenants deposits and deferred rent |
16,808 | 1,916 | 144 | 18,868 | 18,205 | 2,128 | 149 | 20,482 | ||||||||||||||||||||||||
Fair value of derivative instruments |
- | - | 25,456 | 25,456 | - | - | 27,233 | 27,233 | ||||||||||||||||||||||||
Other liabilities |
30,637 | (3,025 | ) | 22,649 | 50,261 | 32,593 | (2,277 | ) | 29,686 | 60,002 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total liabilities |
1,779,328 | 186,312 | 498,225 | 2,463,865 | 1,794,268 | 171,404 | 543,277 | 2,508,949 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Equity: |
||||||||||||||||||||||||||||||||
Total equity |
1,062,284 | (22,500 | ) | (381,735 | ) | 658,049 | 1,121,768 | (4,969 | ) | (412,269 | ) | 704,530 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total liabilities and equity |
$ | 2,841,612 | $ | 163,812 | $ | 116,490 | $ | 3,121,914 | $ | 2,916,036 | $ | 166,435 | $ | 131,008 | $ | 3,213,479 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total includes PREITs proportionate share of partnership assets and liabilities grossed up to reflect the Companys share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Companys equity in these properties.
(2) Total includes straight line rent of $28.1 million ($25.6 million wholly owned, $2.5 million partnership) as of June 30, 2011, and $27.8 million ($25.2 million wholly owned, $2.6 million partnership) as of December 31, 2010.
Page 23
Pennsylvania Real Estate Investment Trust
(in thousands)
June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||
Operating Properties and Land Held for Development |
Construction in Progress |
Accumulated Depreciation |
Net Real Estate |
Operating Properties and Land Held for Development |
Construction in Progress |
Accumulated Depreciation |
Net Real Estate |
|||||||||||||||||||||||||
Consolidated Malls |
||||||||||||||||||||||||||||||||
Beaver Valley Mall |
$ | 70,034 | $ | - | $ | 20,033 | $ | 50,001 | $ | 69,663 | $ | - | $ | 18,536 | $ | 51,127 | ||||||||||||||||
Capital City Mall |
96,365 | - | 23,435 | 72,930 | 95,920 | - | 21,547 | 74,373 | ||||||||||||||||||||||||
Chambersburg Mall |
38,315 | - | 8,327 | 29,988 | 38,529 | - | 7,803 | 30,726 | ||||||||||||||||||||||||
Cherry Hill Mall |
450,168 | 43 | 87,587 | 362,624 | 448,513 | 34 | 76,173 | 372,374 | ||||||||||||||||||||||||
Crossroads Mall |
38,204 | 190 | 9,526 | 28,868 | 36,750 | 1,057 | 8,903 | 28,904 | ||||||||||||||||||||||||
Cumberland Mall |
63,338 | 130 | 10,013 | 53,455 | 63,340 | 153 | 9,051 | 54,442 | ||||||||||||||||||||||||
Dartmouth Mall |
62,641 | - | 27,561 | 35,080 | 62,543 | - | 26,604 | 35,939 | ||||||||||||||||||||||||
Exton Square Mall |
148,448 | 72 | 28,094 | 120,426 | 147,556 | 64 | 26,367 | 121,253 | ||||||||||||||||||||||||
Francis Scott Key Mall |
77,515 | 157 | 17,877 | 59,795 | 76,482 | 813 | 16,587 | 60,708 | ||||||||||||||||||||||||
Gadsden Mall |
61,321 | - | 10,890 | 50,431 | 61,174 | - | 9,735 | 51,439 | ||||||||||||||||||||||||
The Gallery at Market East |
169,916 | 1,994 | 23,589 | 148,321 | 169,696 | 2,014 | 19,913 | 151,797 | ||||||||||||||||||||||||
Jacksonville Mall |
79,728 | - | 17,389 | 62,339 | 79,247 | - | 16,096 | 63,151 | ||||||||||||||||||||||||
Logan Valley Mall |
96,026 | - | 23,645 | 72,381 | 96,000 | - | 22,521 | 73,479 | ||||||||||||||||||||||||
Lycoming Mall |
76,819 | - | 17,141 | 59,678 | 76,814 | - | 15,817 | 60,997 | ||||||||||||||||||||||||
Magnolia Mall |
87,649 | 562 | 25,459 | 62,752 | 87,434 | 27 | 23,814 | 63,647 | ||||||||||||||||||||||||
Moorestown Mall |
93,027 | 4 | 26,682 | 66,349 | 92,560 | 87 | 25,201 | 67,446 | ||||||||||||||||||||||||
New River Valley Mall |
57,954 | - | 16,789 | 41,165 | 57,892 | - | 15,238 | 42,654 | ||||||||||||||||||||||||
Nittany Mall |
43,628 | - | 9,699 | 33,929 | 43,458 | - | 9,073 | 34,385 | ||||||||||||||||||||||||
North Hanover Mall |
38,303 | 17,100 | 8,643 | 46,760 | 38,219 | 17,100 | 8,004 | 47,315 | ||||||||||||||||||||||||
Orlando Fashion Square (2) |
42,476 | - | 5,705 | 36,771 | 40,426 | - | 4,448 | 35,978 | ||||||||||||||||||||||||
Palmer Park Mall |
34,528 | - | 12,511 | 22,017 | 34,465 | - | 12,103 | 22,362 | ||||||||||||||||||||||||
Patrick Henry Mall |
141,744 | - | 35,439 | 106,305 | 141,312 | - | 32,338 | 108,974 | ||||||||||||||||||||||||
Phillipsburg Mall |
54,922 | 7 | 11,755 | 43,174 | 54,088 | 606 | 10,930 | 43,764 | ||||||||||||||||||||||||
Plymouth Meeting Mall |
160,002 | 24 | 31,391 | 128,635 | 159,802 | 426 | 28,256 | 131,972 | ||||||||||||||||||||||||
The Mall at Prince Georges |
100,744 | - | 34,566 | 66,178 | 100,654 | - | 32,782 | 67,872 | ||||||||||||||||||||||||
South Mall |
33,761 | - | 6,513 | 27,248 | 33,728 | - | 6,107 | 27,621 | ||||||||||||||||||||||||
Uniontown Mall |
39,979 | - | 10,450 | 29,529 | 39,955 | - | 9,750 | 30,205 | ||||||||||||||||||||||||
Valley Mall |
92,135 | - | 22,233 | 69,902 | 92,081 | - | 21,252 | 70,829 | ||||||||||||||||||||||||
Valley View Mall |
67,913 | - | 13,825 | 54,088 | 67,602 | - | 12,977 | 54,625 | ||||||||||||||||||||||||
Viewmont Mall |
90,387 | - | 19,064 | 71,323 | 90,359 | - | 17,600 | 72,759 | ||||||||||||||||||||||||
Voorhees Town Center |
69,207 | 17,711 | 15,604 | 71,314 | 66,001 | 20,774 | 13,950 | 72,825 | ||||||||||||||||||||||||
Washington Crown Center |
40,259 | - | 13,206 | 27,053 | 40,249 | - | 12,826 | 27,423 | ||||||||||||||||||||||||
Willow Grove Park |
189,117 | 25,054 | 48,548 | 165,623 | 189,032 | 23,943 | 45,471 | 167,504 | ||||||||||||||||||||||||
Wiregrass Commons Mall |
52,935 | - | 10,029 | 42,906 | 52,072 | - | 9,159 | 42,913 | ||||||||||||||||||||||||
Woodland Mall |
185,587 | - | 31,071 | 154,516 | 185,530 | - | 28,070 | 157,460 | ||||||||||||||||||||||||
Wyoming Valley Mall |
108,195 | - | 24,175 | 84,020 | 107,913 | - | 22,251 | 85,662 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Consolidated Malls |
3,353,290 | 63,048 | 758,464 | 2,657,874 | 3,337,059 | 67,098 | 697,253 | 2,706,904 | ||||||||||||||||||||||||
Unconsolidated Malls |
||||||||||||||||||||||||||||||||
Lehigh Valley Mall |
41,409 | 73 | 18,164 | 23,318 | 41,516 | 21 | 17,338 | 24,199 | ||||||||||||||||||||||||
Springfield Mall |
55,413 | 5 | 10,974 | 44,444 | 55,269 | 4 | 10,117 | 45,156 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Unconsolidated Malls |
96,822 | 78 | 29,138 | 67,762 | 96,785 | 25 | 27,455 | 69,355 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TOTAL MALLS |
$ | 3,450,112 | $ | 63,126 | $ | 787,602 | $ | 2,725,636 | $ | 3,433,844 | $ | 67,123 | $ | 724,708 | $ | 2,776,259 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total includes PREITs proportionate share of partnership assets and liabilities grossed up to reflect the Companys share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Companys equity in these properties.
(2) Includes impairment of $62,700 recorded in the 4th Quarter 2009.
Page 24
Pennsylvania Real Estate Investment Trust
Investment in Real Estate(1) (continued)
(in thousands)
June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||
Operating Property and Land Held for Development |
Construction in Progress |
Accumulated Depreciation |
Net Real Estate |
Operating Property and Land Held for Development |
Construction in Progress |
Accumulated Depreciation |
Net Real Estate |
|||||||||||||||||||||||||
Consolidated Strip and Power Centers |
||||||||||||||||||||||||||||||||
Christiana Center |
$ | 42,648 | $ | - | $ | 12,913 | $ | 29,735 | $ | 42,020 | $ | - | $ | 12,288 | $ | 29,732 | ||||||||||||||||
The Commons at Magnolia |
12,674 | - | 3,587 | 9,087 | 12,674 | - | 3,347 | 9,327 | ||||||||||||||||||||||||
Paxton Towne Centre |
57,363 | - | 17,718 | 39,645 | 57,147 | - | 16,198 | 40,949 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Consolidated Strip and Power Centers |
112,685 | - | 34,218 | 78,467 | 111,841 | - | 31,833 | 80,008 | ||||||||||||||||||||||||
Unconsolidated Strip and Power Centers |
||||||||||||||||||||||||||||||||
Metroplex Shopping Center |
42,680 | - | 16,442 | 26,238 | 42,180 | - | 15,315 | 26,865 | ||||||||||||||||||||||||
The Court at Oxford Valley |
27,883 | - | 8,932 | 18,951 | 27,883 | - | 8,600 | 19,283 | ||||||||||||||||||||||||
Red Rose Commons |
13,178 | - | 4,111 | 9,067 | 13,178 | - | 3,936 | 9,242 | ||||||||||||||||||||||||
Whitehall Mall |
16,766 | - | 8,650 | 8,116 | 16,954 | - | 8,570 | 8,384 | ||||||||||||||||||||||||
Springfield Park |
7,285 | - | 1,603 | 5,682 | 7,285 | - | 1,531 | 5,754 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Unconsolidated Strip and Power Centers |
107,792 | - | 39,738 | 68,054 | 107,480 | - | 37,952 | 69,528 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TOTAL STRIP AND POWER CENTERS |
$ | 220,477 | $ | - | $ | 73,956 | $ | 146,521 | $ | 219,321 | $ | - | $ | 69,785 | $ | 149,536 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Consolidated Properties Under Development |
||||||||||||||||||||||||||||||||
Springhills (2) |
$ | - | $ | 21,961 | $ | - | $ | 21,961 | $ | - | $ | 21,984 | $ | - | $ | 21,984 | ||||||||||||||||
White Clay Point (3) |
- | 32,899 | - | 32,899 | - | 32,465 | - | 32,465 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Consolidated Properties Under Development |
- | 54,860 | - | 54,860 | - | 54,449 | - | 54,449 | ||||||||||||||||||||||||
Unconsolidated Properties Under Development |
||||||||||||||||||||||||||||||||
Pavilion at Market East |
6,240 | 732 | 1,397 | 5,575 | 6,240 | 728 | 1,292 | 5,676 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Unconsolidated Properties Under Development |
6,240 | 732 | 1,397 | 5,575 | 6,240 | 728 | 1,292 | 5,676 | ||||||||||||||||||||||||
Other Properties |
||||||||||||||||||||||||||||||||
Land held for development-consolidated |
15,364 | - | - | 15,364 | 17,021 | - | - | 17,021 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Other Properties |
15,364 | - | - | 15,364 | 17,021 | - | - | 17,021 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TOTAL DEVELOPMENT AND OTHER |
$ | 21,604 | $ | 55,592 | $ | 1,397 | $ | 75,799 | $ | 23,261 | $ | 55,177 | $ | 1,292 | $ | 77,146 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TOTAL INVESTMENT IN REAL ESTATE |
$ | 3,692,193 | $ | 118,718 | $ | 862,955 | $ | 2,947,956 | $ | 3,676,426 | $ | 122,300 | $ | 795,785 | $ | 3,002,941 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
CONSOLIDATED PROPERTIES |
$ | 3,481,339 | $ | 117,908 | $ | 792,682 | $ | 2,806,565 | $ | 3,465,921 | $ | 121,547 | $ | 729,086 | $ | 2,858,382 | ||||||||||||||||
UNCONSOLIDATED PROPERTIES |
210,854 | 810 | 70,273 | 141,391 | 210,505 | 753 | 66,699 | 144,559 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TOTAL INVESTMENT IN REAL ESTATE |
$ | 3,692,193 | $ | 118,718 | $ | 862,955 | $ | 2,947,956 | $ | 3,676,426 | $ | 122,300 | $ | 795,785 | $ | 3,002,941 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total includes PREITs proportionate share of partnership assets and liabilities grossed up to reflect the Companys share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Companys equity in these properties.
(2) Includes impairment of $11,484 recorded in the 4th Quarter 2009.
(3) Includes impairment of $11,799 recorded in the 4th Quarter 2008.
Page 25
Pennsylvania Real Estate Investment Trust
(in thousands)
Quarter Ended June 30, 2011 | Six Months Ended June 30, 2011 | |||||||||||||||||||||||
Consolidated | Unconsolidated | Total | Consolidated | Unconsolidated | Total | |||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Redevelopment projects with incremental GLA and/or anchor replacement (1) |
$ | (906 | ) | $ | 64 | $ | (842 | ) | $ | 2,586 | $ | 67 | $ | 2,653 | ||||||||||
New development projects |
360 | 1 | 361 | 434 | 4 | 438 | ||||||||||||||||||
Tenant allowances |
4,612 | - | 4,612 | 5,841 | - | 5,841 | ||||||||||||||||||
Recurring capital expenditures: |
||||||||||||||||||||||||
CAM expenditures |
3,059 | 110 | 3,169 | 3,209 | 143 | 3,352 | ||||||||||||||||||
Non-CAM expenditures |
1,369 | - | 1,369 | 1,549 | - | 1,549 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total recurring capital expenditures |
4,428 | 110 | 4,538 | 4,758 | 143 | 4,901 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 8,494 | $ | 175 | $ | 8,669 | $ | 13,619 | $ | 214 | $ | 13,833 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Net of any tenant reimbursements, parcel sales, tax credits or other incentives. |
Page 26
Pennsylvania Real Estate Investment Trust
Debt Analysis as of June 30, 2011
(in thousands)
Outstanding Debt | ||||||||||||||||||
Fixed Rate (1) | % of Total Indebtedness |
Variable Rate (5) | % of Total Indebtedness |
Total | % of Total Indebtedness | |||||||||||||
Consolidated mortgage loans payable (2) |
$ | 1,680,388 | 70.9% | $ | 52,968 | 2.2% | $ | 1,733,356 | 73.1% | |||||||||
Unconsolidated mortgage loans payable |
190,866 | 8.1% | - | 0.0% | 190,866 | 8.1% | ||||||||||||
Exchangeable notes (3) |
135,058 | 5.7% | - | 0.0% | 135,058 | 5.7% | ||||||||||||
2010 Credit Facility (4) |
300,000 | 12.7% | 10,000 | 0.4% | 310,000 | 13.1% | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||
TOTAL OUTSTANDING DEBT |
$ | 2,306,312 | 97.4% | $ | 62,968 | 2.6% | $ | 2,369,280 | 100.0% | |||||||||
|
|
|
|
|
|
|
|
| ||||||||||
AVERAGE STATED INTEREST RATE |
5.70% | 2.47% | 5.61% | |||||||||||||||
|
|
|
|
|
|
(1) Includes variable rate debt swapped to fixed rate debt.
(2) Includes debt premium of $993
(3) Net of debt discount of $1,842
(4) Includes $310.0 million of the 2010 Credit Facility. We have entered into interest rate swap agreements to effectively fix $300.0 million of the underlying LIBOR associated with the 2010 Credit Facility at a weighted average rate of 1.77% (excluding the spread on the related debt) for the three-year initial term which expires March 10, 2013. Of that notional amount, $200.0 million of this $300.0 million is also covered by a forward starting swap that becomes effective on April 2, 2012 at a rate of 2.96% until March 2013, excluding the spread on the related debt. Additionally, $15.6 million of which is subject to a LIBOR cap with a strike price of 2.50%. The LIBOR cap will mature in April 2012.
(5) The variable rate amount includes $15.6 million that is subject to a LIBOR cap with a strike rate of 2.5%. The LIBOR cap expires in March 2012.
Average Debt Balance |
||||||||||||||||||||||||||||
2010 Credit Facility | ||||||||||||||||||||||||||||
Mortgage Debt (1) | Revolving Facility |
Term Loans | Exchangeable Notes |
Exchangeable Notes Discount |
TOTAL | |||||||||||||||||||||||
Beginning Balance |
3/31/2011 | $ | 1,913,602 | $ | - | $ | 347,200 | $ | 136,900 | $ | (2,329 | ) | $ | 2,395,373 | ||||||||||||||
Term Loan repayment |
- | - | (7,200 | ) | - | - | (7,200 | ) | ||||||||||||||||||||
Red Rose Commons refinancing |
2,848 | - | - | - | - | 2,848 | ||||||||||||||||||||||
The Court at Oxford Valley refinancing |
13,997 | - | - | - | - | 13,997 | ||||||||||||||||||||||
2010 Credit Facility Amendment |
100,000 | (100,000 | ) | - | ||||||||||||||||||||||||
Revolving Facility repayment |
- | (30,000 | ) | - | - | - | (30,000 | ) | ||||||||||||||||||||
Mortgage loan amortization (2) |
(6,224 | ) | - | - | - | - | (6,224 | ) | ||||||||||||||||||||
Exchangeable notes discount amortization |
- | - | - | - | 487 | 487 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ending Balance |
6/30/2011 | $ | 1,924,222 | $ | 70,000 | $ | 240,000 | $ | 136,900 | $ | (1,842 | ) | $ | 2,369,280 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Weighted Average Balance |
$ | 1,913,451 | $ | 1,099 | $ | 342,460 | $ | 136,900 | $ | (2,168 | ) | $ | 2,391,743 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes debt premium.
(2) Includes the amortization of debt premium and balloon payments.
Debt Maturities (1) |
||||||||||||||||||||||||||||||||||
2010 Credit Facility | ||||||||||||||||||||||||||||||||||
Year | Scheduled Amortization |
Debt Premium Amortization |
Mortgage Balance at Maturity |
Revolving Facility | Term Loans | Exchangeable Notes |
Exchangeable Notes Discount Amortization |
Total Debt | ||||||||||||||||||||||||||
2011 | $ | 11,974 | $ | 577 | $ | 87,703 | $ | - | $ | - | $ | - | $ | (993 | ) | $ | 99,261 | |||||||||||||||||
2012 | 21,768 | 416 | 407,603 | - | - | 136,900 | (849 | ) | 565,838 | |||||||||||||||||||||||||
2013 | 16,375 | - | 430,772 | - | - | - | - | 447,147 | ||||||||||||||||||||||||||
2014 | 14,861 | - | 99,203 | 70,000 | 240,000 | - | - | 424,064 | ||||||||||||||||||||||||||
2015 | 13,918 | - | 305,896 | - | - | - | - | 319,814 | ||||||||||||||||||||||||||
2016 | 3,927 | - | 219,480 | - | - | - | - | 223,407 | ||||||||||||||||||||||||||
2017 | 3,199 | - | 150,000 | - | - | - | - | 153,199 | ||||||||||||||||||||||||||
Thereafter | 8,565 | - | 127,985 | - | - | - | - | 136,550 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
$ | 94,587 | $ | 993 | $ | 1,828,642 | $ | 70,000 | $ | 240,000 | $ | 136,900 | $ | (1,842 | ) | $ | 2,369,280 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The weighted average period to mortgage maturity is 3.48 years, excluding extension options. Excludes debt premium on mortgage loans and debt discount on exchangeable notes. Includes 100% of mortgage debt from consolidated properties and our share of mortgage debt from unconsolidated properties, based on our ownership percentage.
Weighted Average Mortgage Interest Rates |
||||||||||||||||||
Interest Rate | Marked to Market Interest Rate (GAAP) (1) |
|||||||||||||||||
Year | Balance | Interest Rate | Balance | Interest Rate | ||||||||||||||
2011 | $ | 87,886 | 6.06% | $ | 87,886 | 6.06% | ||||||||||||
2012 | 416,391 | 5.63% | 416,391 | 5.28% | ||||||||||||||
2013 | 436,337 | 5.48% | 436,337 | 5.48% | ||||||||||||||
2014 | 102,953 | 7.28% | 102,953 | 7.28% | ||||||||||||||
2015 | 337,517 | 5.69% | 337,517 | 5.69% | ||||||||||||||
2016 | 238,183 | 5.55% | 238,183 | 5.55% | ||||||||||||||
Thereafter | 303,962 | 5.65% | 303,962 | 5.65% | ||||||||||||||
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Total | $ | 1,923,229 | 5.71% | $ | 1,923,229 | 5.63% | ||||||||||||
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(1) Excludes amortization of debt issuance costs.
Page 27
Pennsylvania Real Estate Investment Trust
Debt Schedule as of June 30, 2011
(in thousands)
Proportionate Share(1) | Interest Rate |
Marked to Market Interest Rate (GAAP) |
Annual Debt Service |
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Lender |
Debt | Debt Premium/ (Discount) |
Total | Balance at Maturity |
Maturity Date | |||||||||||||||||||||||||||||
Fixed Rate Mortgage Loans |
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Paxton Towne Centre (2) (8) |
Bank | $ | 54,000 | $ | - | $ | 54,000 | 5.84% | 5.84% | $ | 3,152 | $ | 54,000 | July 2011 | ||||||||||||||||||||
Metroplex Shopping Center |
CMBS | 28,968 | - | 28,968 | 7.25% | 7.25% | 2,681 | 28,785 | Nov 2011 | |||||||||||||||||||||||||
Capital City Mall |
CMBS | 48,403 | 539 | 48,942 | 7.61% | 5.50% | 4,603 | 47,898 | Feb 2012 | |||||||||||||||||||||||||
Beaver Valley Mall |
CMBS | 42,918 | - | 42,918 | 7.36% | 7.36% | 3,972 | 42,266 | Apr 2012 | |||||||||||||||||||||||||
Pavilion East Associates (2) |
Bank | 3,837 | - | 3,837 | 6.15% | 6.15% | 240 | 3,708 | Aug 2012 | |||||||||||||||||||||||||
Cherry Hill Mall |
Life Insurance Co | 182,363 | - | 182,363 | 5.42% | 5.42% | 13,510 | 177,689 | Oct 2012 | |||||||||||||||||||||||||
Cherry Hill Mall Supplemental Loan |
Life Insurance Co | 54,005 | - | 54,005 | 5.51% | 5.51% | 3,030 | 53,003 | Oct 2012 | |||||||||||||||||||||||||
Cumberland Mall Loan #1 |
CMBS | 39,865 | 454 | 40,319 | 6.50% | 5.40% | 3,413 | 38,782 | Nov 2012 | |||||||||||||||||||||||||
New River Valley Mall (2) (4) |
Bank | 25,000 | - | 25,000 | 6.33% | 6.33% | 1,583 | 25,000 | Jan 2013 | |||||||||||||||||||||||||
Dartmouth Mall |
CMBS | 60,496 | - | 60,496 | 4.95% | 4.95% | 4,484 | 57,594 | June 2013 | |||||||||||||||||||||||||
Moorestown Mall |
CMBS | 55,526 | - | 55,526 | 4.95% | 4.95% | 4,115 | 52,863 | June 2013 | |||||||||||||||||||||||||
Jacksonville Mall (2) (3) |
Bank | 56,265 | - | 56,265 | 5.83% | 5.83% | 3,277 | 56,265 | Sept 2013 | |||||||||||||||||||||||||
Logan Valley Mall (2) (3) |
Bank | 68,000 | - | 68,000 | 5.79% | 5.79% | 3,939 | 68,000 | Sept 2013 | |||||||||||||||||||||||||
Wyoming Valley Mall (2) (3) |
Bank | 65,000 | - | 65,000 | 5.85% | 5.85% | 3,803 | 65,000 | Sept 2013 | |||||||||||||||||||||||||
Francis Scott Key Mall (2) |
Bank | 55,000 | - | 55,000 | 5.25% | 5.25% | 2,885 | 55,000 | Dec 2013 | |||||||||||||||||||||||||
Viewmont Mall (2) |
Bank | 48,000 | - | 48,000 | 5.25% | 5.25% | 2,518 | 48,000 | Dec 2013 | |||||||||||||||||||||||||
Exton Square Mall |
Life Insurance Co | 68,465 | - | 68,465 | 7.50% | 7.50% | 5,873 | 66,733 | Jan 2014 | |||||||||||||||||||||||||
Lycoming Mall |
Bank | 34,488 | - | 34,488 | 6.84% | 6.84% | 3,001 | 32,470 | Jul 2014 | |||||||||||||||||||||||||
Springfield East (2) (5) |
Bank | 2,251 | - | 2,251 | 5.39% | 5.39% | 92 | 2,061 | Mar 2015 | |||||||||||||||||||||||||
Springfield Park (2) (5) |
Bank | 2,643 | - | 2,643 | 5.39% | 5.39% | 108 | 2,419 | Mar 2015 | |||||||||||||||||||||||||
Magnolia Mall |
CMBS | 60,134 | - | 60,134 | 5.33% | 5.33% | 4,413 | 54,842 | July 2015 | |||||||||||||||||||||||||
Patrick Henry Mall |
Life Insurance Co | 92,383 | - | 92,383 | 6.34% | 6.34% | 7,743 | 83,210 | Oct 2015 | |||||||||||||||||||||||||
Springfield Mall (2) |
Bank | 33,248 | - | 33,248 | 4.77% | 4.77% | 2,118 | 30,740 | Nov 2015 | |||||||||||||||||||||||||
Willow Grove Park |
Life Insurance Co | 146,858 | - | 146,858 | 5.65% | 5.65% | 11,083 | 132,624 | Dec 2015 | |||||||||||||||||||||||||
Valley Mall |
CMBS | 86,052 | - | 86,052 | 5.49% | 5.49% | 5,014 | 78,996 | Mar 2016 | |||||||||||||||||||||||||
Woodland Mall |
CMBS | 152,131 | - | 152,131 | 5.58% | 5.58% | 10,760 | 140,484 | Apr 2016 | |||||||||||||||||||||||||
The Mall at Prince Georges |
CMBS | 150,000 | - | 150,000 | 5.51% | 5.51% | 8,269 | 150,000 | June 2017 | |||||||||||||||||||||||||
Whitehall Mall |
Life Insurance Co | 5,772 | - | 5,772 | 7.00% | 7.00% | 574 | 4,145 | Nov 2018 | |||||||||||||||||||||||||
Cumberland Mall Loan #2 |
Bank | 2,378 | - | 2,378 | 5.00% | 5.00% | 390 | - | Dec 2018 | |||||||||||||||||||||||||
Lehigh Valley Mall |
Life Insurance Co | 69,197 | - | 69,197 | 5.88% | 5.88% | 4,972 | 58,519 | July 2020 | |||||||||||||||||||||||||
Valley View Mall |
CMBS | 31,665 | - | 31,665 | 5.95% | 5.95% | 2,290 | 27,161 | July 2020 | |||||||||||||||||||||||||
Red Rose Commons |
CMBS | 14,950 | - | 14,950 | 5.14% | 5.14% | 978 | 12,379 | July 2021 | |||||||||||||||||||||||||
The Court at Oxford Valley |
CMBS | 30,000 | - | 30,000 | 5.56% | 5.56% | 1,668 | 25,782 | July 2021 | |||||||||||||||||||||||||
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Total Fixed Rate Mortgage Loans |
1,870,261 | 993 | 1,871,254 | 5.81% | 5.73% | 130,550 | 1,776,418 | |||||||||||||||||||||||||||
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Variable Rate Mortgage Loans |
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One Cherry Hill Plaza (6) |
Bank | 4,918 | - | 4,918 | 1.49% | 1.49% | 73 | 4,918 | Aug 2011 | |||||||||||||||||||||||||
Christiana Center (7) |
Bank | 45,000 | - | 45,000 | 2.05% | 2.05% | 3,646 | 44,257 | June 2012 | |||||||||||||||||||||||||
New River Valley Mall (4) |
Bank | 3,050 | - | 3,050 | 4.75% | 4.75% | 145 | 3,050 | Jan 2013 | |||||||||||||||||||||||||
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Total Variable Rate Mortgage Loans |
52,968 | - | 52,968 | 2.15% | 2.15% | 3,864 | 52,225 | |||||||||||||||||||||||||||
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Total Mortgage Loans |
$ | 1,923,229 | $ | 993 | $ | 1,924,222 | 5.71% | 5.63% | $ | 134,414 | $ | 1,828,643 | ||||||||||||||||||||||
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CONSOLIDATED MORTGAGE LOANS |
$ | 1,732,363 | $ | 993 | $ | 1,733,356 | 5.70% | 5.61% | $ | 120,983 | $ | 1,660,105 | ||||||||||||||||||||||
UNCONSOLIDATED MORTGAGE LOANS |
190,866 | - | 190,866 | 5.81% | 5.81% | 13,431 | 168,538 | |||||||||||||||||||||||||||
EXCHANGEABLE NOTES (9) |
136,900 | (1,842 | ) | 135,058 | 4.00% | 5.84% | 5,476 | 136,900 | June 2012 | |||||||||||||||||||||||||
2010 CREDIT FACILITY - FIXED RATE (10) (11) (12) |
300,000 | - | 300,000 | 5.78% | 5.78% | 17,327 | 300,000 | Mar 2014 | ||||||||||||||||||||||||||
2010 CREDIT FACILITY - VARIABLE RATE (10) (11) |
10,000 | - | 10,000 | 4.19% | 4.19% | 419 | 10,000 | Mar 2014 | ||||||||||||||||||||||||||
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Total |
$ | 2,370,129 | $ | (849 | ) | $ | 2,369,280 | 5.61% | 5.66% | $ | 157,636 | $ | 2,275,543 | |||||||||||||||||||||
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AMORTIZATION OF DEFERRED FINANCING FEES |
- | - | - | - | 0.41% | - | - | |||||||||||||||||||||||||||
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EFFECTIVE INTEREST RATE |
$ | 2,370,129 | $ | (849 | ) | $ | 2,369,280 | 5.61% | 6.07% | $ | 157,636 | $ | 2,275,543 | |||||||||||||||||||||
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(1) Includes 100% of debt from consolidated properties and our share of debt from unconsolidated properties, based on our ownership percentage.
(2) The mortgage loan has been swapped to the fixed interest rate presented.
(3) The mortgage loan has two one year extension options.
(4) The mortgage loan has one one year extension option.
(5) The mortgage loan has one five year extension option.
(6) The mortgage loan had two one year extension options. The first option was exercised in June 2009 for the period August 2009 to August 2010. The second option was exercised in July 2010 for the period of August 2010 to August 2011.
(7) The mortgage loan has two one year extension options. The first option was exercised to extend the maturity date to June 2012.
(8) The mortgage loan has two one year extension options. The first option was exercised to extend the maturity date to July 2012.
(9) The marked to market interest rate includes the effect of deferred financing fee amortization and debt discount amortization.
(10) Secured by first mortgage liens on 20 properties. See page 29 for property detail.
(11) The 2010 Credit Facility consists of the 2010 Term Loan, with a balance of $240,000 and the Revolving Facility, with a balance of $70,000. The total available to borrow against the Revolving Facility is $179,439.
(12) Includes $310.0 million of the 2010 Credit Facility. We have entered into interest rate swap agreements to effectively fix $300.0 million of the underlying LIBOR associated with the 2010 Credit Facility at a weighted average rate of 1.77% (excluding the spread on the related debt) for the three-year initial term which expires March 10, 2013. Of that notional amount, $200.0 million of this $300.0 million is also covered by a forward starting swap that becomes effective on April 2, 2012 at a rate of 2.96% until March 2013, excluding the spread on the related debt. Additionally, $15.6 million of which is subject to a LIBOR cap with a strike price of 2.50%. The LIBOR cap will mature in April 2012.
Page 28
Pennsylvania Real Estate Investment Trust
June 30, 2011 | ||||
Consolidated Liabilities to Gross Asset Value |
67.55% | |||
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 70% |
||||
EBITDA to Interest Expense |
1.82 | |||
EBITDA may not be less than 1.60 to 1.00 |
||||
Adjusted EBITDA to Fixed Charges |
1.53 | |||
Adjusted EBITDA may not be less than 1.35 to 1.00 |
||||
Corporate Debt Yield |
10.84% | |||
The ratio of EBITDA to total indebtedness may not be less than 9.50%. |
||||
Facility Debt Yield |
17.08% | |||
The ratio of NOI for Collateral Properties to Aggregate Outstanding Principal Amount(2) |
Collateral Properties | ||||
Chambersburg Mall |
North Hanover Mall | South Mall | ||
Crossroads Mall |
Orlando Fashion Square | Uniontown Mall | ||
Gadsden Mall |
P&S Office Building | Voorhees Town Center | ||
The Gallery at Market East I |
Palmer Park Mall | Washington Crown Center | ||
The Gallery at Market East II |
Phillipsburg Mall | Westgate Anchor Pad | ||
The Commons at Magnolia |
Plymouth Meeting Mall | Wiregrass Commons Mall | ||
Nittany Mall |
The Plaza at Magnolia | |||
(1) The amended, restated and consolidated senior secured credit agreement dated as of March 11, 2010, as amended on June 29, 2011 (the 2010 Credit Facility), contains affirmative and negative covenants customarily found in such agreements, including requirements that the Company, on a consolidated basis, maintain certain financial ratios. All capitalized terms used on this page have the meanings ascribed to such terms in the 2010 Credit Facility. In addition to the ratios set forth herein, there are several other ratios under the 2010 Credit Agreement with which the Company must comply, all of which are described in the Companys Current Reports on Form 8-K dated March 11, 2010 and June 29, 2011. The Company has filed the 2010 Credit Agreement and related material agreements in accordance with the rules and regulations of the Securities and Exchange Commission.
(2) The Maximum Loan Availability is based on a Facility Debt Yield equal to or greater than 9.75%.
Page 29
Pennsylvania Real Estate Investment Trust
Ten Largest Institutional Shareholders: | Common Shares Held (1) |
|||
The Vanguard Group, Inc. |
6,150,485 | |||
BlackRock Fund Advisors |
4,468,151 | |||
Cohen & Steers Capital Management, Inc. |
2,674,901 | |||
Dreman Value Management LLC |
2,498,533 | |||
Deutsche Investment Management Americas, Inc. |
1,924,725 | |||
State Street Global Advisors |
1,859,365 | |||
Brookfield Investment Management, Inc. |
1,831,294 | |||
Northern Trust Global Investments Ltd. |
1,170,493 | |||
Pacific Heights Asset Management LLC |
1,000,000 | |||
JPMorgan Asset Management |
889,836 | |||
|
|
|||
TOTAL of Ten Largest Institutional: |
24,467,783 | |||
TOTAL of all Institutional Holders: |
40,793,171 | |||
Ten Largest as % of Total Institutional: |
60.0% |
(1) | Based on 13F and 13G filings as of June 30, 2011 or most recent filings. |
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|||||||
Breakdown of Share & Unit Ownership: Shares Held |
Most Recent | % of Outstanding | December 31, 2010 | |||||||||
Institutional(1) |
40,793,171 | 70.3% | 38,639,075 | |||||||||
Retail(2) |
12,157,388 | 21.0% | 13,992,951 | |||||||||
Insiders(3) |
5,064,204 | 8.7% | 5,133,095 | |||||||||
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|||||||
TOTAL |
58,014,763 | 100.0% | 57,765,121 | |||||||||
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(1) Based on 13F and 13G filings as of June 30, 2011 or most recent filings.
(2) Retail ownership equals total shares outstanding minus institutional and insider ownership.
(3) Insider holdings as of March 31, 2011 (Shares and OP Units only). See proxy statement dated April 27, 2011 for more details.
Page 30
Pennsylvania Real Estate Investment Trust
Funds From Operations (FFO)
Th National Association of Real Estate Investment Trusts (NAREIT) defines Funds From Operations (FFO), which is a non-GAAP measure commonly used by REITs, as income before gains (losses) on sales of operating properties and extraordinary items (computed in accordance with GAAP); plus real estate depreciation; plus or minus adjustments for unconsolidated partnerships to reflect funds from operations on the same basis. Similarly, FFO per diluted share and OP Unit is a measure that is useful because it reflects the dilutive impact of outstanding convertible securities.
The Company uses FFO and FFO per diluted share and OP Unit in measuring its performance against peers and as one of the performance measures for determining incentive compensation amounts earned under certain of our performance-based executive compensation programs. The Company computes FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than the Company.
FFO does not include gains or losses on the sale of operating real estate assets, which are included in the determination of net income in accordance with GAAP. Accordingly, FFO is not a comprehensive measure of our operating cash flows. In addition, since FFO does not include depreciation on real estate assets, FFO may not be a useful performance measure when comparing our operating performance to that of other non-real estate commercial enterprises. We compensate for these limitations by using FFO in conjunction with other GAAP financial performance measures, such as net income and net cash provided by operating activities, and other non-GAAP financial performance measures, such as net operating income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Companys financial performance, or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Companys liquidity, nor is it indicative of funds available for the Companys cash needs, including its ability to make cash distributions.
The Company believes that net income is the most directly comparable GAAP measurement to FFO. The Company believes that FFO is helpful to management and investors as a measure of operating performance because it excludes gains on sales of operating real estate and depreciation and amortization of real estate.
Net Operating Income (NOI)
Net operating income (NOI), which is a non-GAAP measure, is derived from revenues (determined in accordance with GAAP), including lease termination revenue, minus operating expenses (determined in accordance with GAAP). Net operating income is a non-GAAP measure. It does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Companys financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Companys liquidity; nor is it indicative of funds available for the Companys cash needs, including its ability to make cash distributions. The Company believes that net income is the most directly comparable GAAP measurement to net operating income.
The Company believes that net operating income is helpful to management and investors as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. NOI excludes interest and other income, general and administrative expenses, interest expense, depreciation and amortization, gains on sales of interests in real estate, gains or sales of non-operating real estate, gains on sales of discontinued operations, gain on extinguishment of debt, impairment losses, project costs and other expenses
Funds Available for Distribution (FAD)
FAD, which some companies refer to as Cash Available for Distributions (CAD) or Adjusted FFO (AFFO), is a measure of a real estate companys cash flows generated by operations and capacity to pay dividends. The Company calculates FAD by starting with FFO and subtracting (1) straight-line rents, (2) normalized recurring capital expenditures that are capitalized but necessary to maintain our properties, (3) operational tenant allowances, (4) capitalized leasing costs, (5) amortization of debt premium, and (6) amortization of above- and below-market lease intangibles.
The Company believes that net income is the most directly comparable GAAP measurement to FAD. The Company believes FAD provides a meaningful indicator of its ability to fund cash needs and to make cash distributions to equity owners. In addition, the Company believes that to further understand its liquidity, FAD should be compared with its cash flow from operating activities determined in accordance with GAAP, as presented in its consolidated financial statements. The computation of FAD may not be comparable to FAD reported by other REITs or real estate companies and FAD does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, or as an alternative to net cash flow from operating activities (determined in accordance with GAAP), as a measure of our liquidity.
Page 31