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8-K - FORM 8-K - PENNSYLVANIA REAL ESTATE INVESTMENT TRUST | d306741d8k.htm |
Exhibit 99.1
Pennsylvania Real Estate Investment Trust®
Supplemental Financial and Operating Information
Quarter Ended December 31, 2011
www.preit.com
NYSE: PEI
Pennsylvania Real Estate Investment Trust
Supplemental Financial and Operating Information
December 31, 2011
Table of Contents
Introduction |
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Company Information |
1 | |||
Press Release Announcements |
2 | |||
Market Capitalization and Capital Resources |
3 | |||
Operating Results |
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Statement of Operations - Proportionate Consolidation Method - Quarters Ended December 31, 2011 and December 31, 2010 |
4 | |||
Statement of Operations - Proportionate Consolidation Method - Years Ended December 31, 2011 and December 31, 2010 |
5 | |||
Net Operating Income - Quarters Ended December 31, 2011 and December 31, 2010 |
6 | |||
Net Operating Income - Years Ended December 31, 2011 and December 31, 2010 |
7 | |||
Computation of Earnings Per Share |
8 | |||
Funds From Operations and Funds Available for Distribution - Quarters Ended December 31, 2011 and December 31, 2010 |
9 | |||
Funds From Operations and Funds Available for Distribution - Years Ended December 31, 2011 and December 31, 2010 |
10 | |||
Operating Statistics |
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Leasing Activity Summary |
11 | |||
Summarized Rent Per Square Foot and Occupancy Percentages |
12 | |||
Mall Sales and Rent Per Square Foot |
13 | |||
Mall Occupancy - Owned GLA |
14 | |||
Strip and Power Center Rent Per Square Foot and Occupancy Percentages |
15 | |||
Top Twenty Tenants |
16 | |||
Lease Expirations |
17 | |||
Retail Gross Leasable Area Occupancy Summary |
18 | |||
Property Information |
19 | |||
Balance Sheet |
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Balance Sheet - Proportionate Consolidation Method |
22 | |||
Balance Sheet - Property Type |
23 | |||
Investment in Real Estate |
24 | |||
Capital Expenditures |
26 | |||
Debt Analysis |
27 | |||
Debt Schedule |
28 | |||
Selected Debt Ratios |
29 | |||
Shareholder Information |
30 | |||
Definitions |
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, achievements or results, 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 interests in 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 conditions and their effect on employment, consumer confidence and spending and the corresponding effects on tenant business, performance, prospects, solvency and leasing decisions on our cash flows; 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 and in light of the relatively high number of leases that have expired or are expiring by the end of 2013. 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
Company Information
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 December 31, 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 33.1 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
First Quarter 2012 |
April 26, 2012 |
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 | |||
Discern | David Wiggington | (646) 862-4177 | ||
Green Street Advisors | Cedrik Lachance | (949) 640-8780 | ||
Daniel J. Busch | (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
Press Release Announcements
Dividends and Distributions:
February 17, 2012 - PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.
January 17, 2012 - PREIT announced the tax status of its 2011 distributions.
October 20, 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:
February 9, 2012 - PREIT announced an agreement with Mercy Health System to add a 23,500 sf health and wellness satellite location aligned with Mercy Suburban Hospital at Plymouth Meeting Mall in Plymouth Meeting, Pennsylvania.
January 31, 2012 - PREIT announced an agreement with jcpenney to relocate and expand its anchor store at North Hanover Mall in Hanover, Pennsylvania.
December 28, 2011 - PREIT announced it signed Philadelphia Media Network, Inc., owner of The Philadelphia Inquirer, Daily News, and Philly.com, to a 125,000 sf office space at 801 Market Street in Philadelphia, Pennsylvania.
December 22, 2011 - PREIT announced it signed a 12 screen, 56,000 sf Regal Premium Experience movie theater at the Moorestown Mall in Moorestown, New Jersey.
December 19, 2011 - PREIT announced it signed a 12,000 sf lease with Charming Charlie at Plymouth Meeting Mall in Plymouth Meeting, Pennsylvania.
Other activities:
January 26, 2012 - PREIT scheduled its Fourth Quarter 2011 earnings call for Thursday, February 23, 2012.
November 16, 2011 - PREIT announced its 2011 holiday promotion.
November 15, 2011 - PREIT announced the commencement of a multi-faceted repositioning of Moorestown Mall in Moorestown, New Jersey.
October 27, 2011 - PREIT reported its Third Quarter 2011 results.
October 13, 2011 - PREIT scheduled its Third Quarter 2011 earnings call for Thursday, October 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 December 31, | Year Ended December 31, | |||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2009 | ||||||||||||||||
TRADING INFORMATION |
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High Price per share |
$ | 11.00 | $ | 15.93 | $ | 17.34 | $ | 17.35 | $ | 9.13 | ||||||||||
Low Price per share |
$ | 6.50 | $ | 11.58 | $ | 6.50 | $ | 8.35 | $ | 2.20 | ||||||||||
Closing Share Price (at the end of period) |
$ | 10.44 | $ | 14.53 | $ | 10.44 | $ | 14.53 | $ | 8.46 | ||||||||||
MARKET CAPITALIZATION |
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EQUITY CAPITALIZATION |
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Common Shares Outstanding |
55,677 | 55,436 | 55,677 | 55,436 | 44,615 | |||||||||||||||
OP Units Outstanding |
2,329 | 2,329 | 2,329 | 2,329 | 2,329 | |||||||||||||||
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Total Shares and OP Units Outstanding |
58,006 | 57,765 | 58,006 | 57,765 | 46,944 | |||||||||||||||
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Equity Market Capitalization - Shares and OP Units |
$ | 605,581 | $ | 839,327 | $ | 605,581 | $ | 839,327 | $ | 397,148 | ||||||||||
DEBT CAPITALIZATION(1) |
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Secured Debt Balance(2) |
$ | 2,230,645 | $ | 2,265,572 | $ | 2,230,645 | $ | 2,265,572 | $ | 1,956,193 | ||||||||||
Unsecured Debt Balance(3)(4) |
136,900 | 136,900 | 136,900 | 136,900 | 792,900 | |||||||||||||||
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Debt Capitalization |
2,367,545 | 2,402,472 | 2,367,545 | 2,402,472 | 2,749,093 | |||||||||||||||
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TOTAL MARKET CAPITALIZATION |
$ | 2,973,126 | $ | 3,241,799 | $ | 2,973,126 | $ | 3,241,799 | $ | 3,146,241 | ||||||||||
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Equity Capitalization/Total Market Capitalization |
20.4 | % | 25.9 | % | 20.4 | % | 25.9 | % | 12.6 | % | ||||||||||
Debt Capitalization/Total Market Capitalization |
79.6 | % | 74.1 | % | 79.6 | % | 74.1 | % | 87.4 | % | ||||||||||
Unsecured Debt Balance/Total Debt |
5.8 | % | 5.7 | % | 5.8 | % | 5.7 | % | 28.8 | % | ||||||||||
DISTRIBUTIONS PER COMMON SHARE |
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Ordinary Dividends |
$ | 0.04 | $ | 0.15 | $ | 0.37 | $ | 0.60 | $ | 0.63 | ||||||||||
Capital Gain Distributions(5) |
| | 0.01 | | 0.11 | |||||||||||||||
Non-Taxable Distributions |
0.11 | | 0.22 | | | |||||||||||||||
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Distributions per share |
$ | 0.15 | $ | 0.15 | $ | 0.60 | $ | 0.60 | $ | 0.74 | ||||||||||
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Annualized Dividend Yield(6) |
5.7 | % | 4.1 | % | 5.7 | % | 4.1 | % | 8.7 | % | ||||||||||
CAPITAL RESOURCES |
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Cash and Cash Equivalents |
$ | 27,481 | $ | 47,107 | $ | 27,481 | $ | 47,107 | $ | 77,147 | ||||||||||
Revolving Facility |
250,000 | 150,000 | 250,000 | 150,000 | 500,000 | |||||||||||||||
Amount Outstanding |
(95,000 | ) | | (95,000 | ) | | (486,000 | ) | ||||||||||||
Letters of Credit |
| (1,534 | ) | | (1,534 | ) | (3,030 | ) | ||||||||||||
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Available Revolving Facility(7) |
155,000 | 148,466 | 155,000 | 148,466 | 10,970 | |||||||||||||||
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TOTAL |
$ | 182,481 | $ | 195,573 | $ | 182,481 | $ | 195,573 | $ | 88,117 | ||||||||||
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Shelf Registration |
$ | 1,000,000 | $ | 831,812 | $ | 1,000,000 | $ | 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 $95,000 outstanding under the Revolving Facility as of December 31, 2011. |
(3) | The unsecured debt balance includes exchangeable notes of $136,900 for all periods presented. |
(4) | The unsecured debt balance included $170,000 in the senior unsecured 2008 Term Loan and $486,000 in outstanding Credit Facility borrowings for the year ended December 31, 2009. |
(5) | Includes $.004 of unrecaptured Section 1250 gain as of December 31, 2011. |
(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 December 31, 2011 and December 31, 2010
Proportionate Consolidation Method
(in thousands)
Quarter Ended December 31, 2011 | Quarter Ended December 31, 2010 | |||||||||||||||||||||||
GAAP | Share
of unconsolidated partnership(1) |
Total | GAAP | Share
of unconsolidated partnerships(1) |
Total | |||||||||||||||||||
REVENUE: |
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Base rent |
$ | 78,856 | $ | 6,680 | $ | 85,536 | $ | 78,944 | $ | 6,527 | $ | 85,471 | ||||||||||||
Expense reimbursements |
32,379 | 2,730 | 35,109 | 31,897 | 2,659 | 34,556 | ||||||||||||||||||
Percentage rent |
3,993 | 86 | 4,079 | 3,292 | 74 | 3,366 | ||||||||||||||||||
Lease termination revenue |
997 | 24 | 1,021 | 478 | | 478 | ||||||||||||||||||
Other real estate revenue |
6,907 | 455 | 7,362 | 6,473 | 540 | 7,013 | ||||||||||||||||||
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Real estate revenue |
123,132 | 9,975 | 133,107 | 121,084 | 9,800 | 130,884 | ||||||||||||||||||
Interest and other income |
1,004 | | 1,004 | 1,145 | | 1,145 | ||||||||||||||||||
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Total revenue |
124,136 | 9,975 | 134,111 | 122,229 | 9,800 | 132,029 | ||||||||||||||||||
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EXPENSES: |
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Operating expenses: |
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CAM and real estate taxes |
(36,415 | ) | (2,057 | ) | (38,472 | ) | (35,583 | ) | (2,049 | ) | (37,632 | ) | ||||||||||||
Utilities |
(5,634 | ) | (225 | ) | (5,859 | ) | (5,978 | ) | (219 | ) | (6,197 | ) | ||||||||||||
Other operating expenses |
(7,426 | ) | (635 | ) | (8,061 | ) | (7,413 | ) | (684 | ) | (8,097 | ) | ||||||||||||
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Total operating expenses |
(49,475 | ) | (2,917 | ) | (52,392 | ) | (48,974 | ) | (2,952 | ) | (51,926 | ) | ||||||||||||
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Depreciation and amortization |
(34,625 | ) | (2,209 | ) | (36,834 | ) | (38,915 | ) | (2,074 | ) | (40,989 | ) | ||||||||||||
Other expenses: |
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General and administrative expenses |
(10,390 | ) | | (10,390 | ) | (10,712 | ) | | (10,712 | ) | ||||||||||||||
Project costs and other expenses |
(532 | ) | | (532 | ) | (125 | ) | | (125 | ) | ||||||||||||||
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Total other expenses |
(10,922 | ) | | (10,922 | ) | (10,837 | ) | | (10,837 | ) | ||||||||||||||
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Interest expense, net(2) |
(31,855 | ) | (2,828 | ) | (34,683 | ) | (34,142 | ) | (2,617 | ) | (36,759 | ) | ||||||||||||
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Total expenses |
(126,877 | ) | (7,954 | ) | (134,831 | ) | (132,868 | ) | (7,643 | ) | (140,511 | ) | ||||||||||||
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Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate |
(2,741 | ) | 2,021 | (720 | ) | (10,639 | ) | 2,157 | (8,482 | ) | ||||||||||||||
Equity in income of partnerships |
2,021 | (2,021 | ) | | 2,157 | (2,157 | ) | | ||||||||||||||||
Gains on sales of non-operating real estate |
140 | | 140 | | | | ||||||||||||||||||
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Loss from continuing operations |
(580 | ) | | (580 | ) | (8,482 | ) | | (8,482 | ) | ||||||||||||||
Discontinued operations: |
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Adjustment to gains on sales of discontinued operations |
| | | (56 | ) | | (56 | ) | ||||||||||||||||
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Loss from discontinued operations |
| | | (56 | ) | | (56 | ) | ||||||||||||||||
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Net loss |
(580 | ) | | (580 | ) | (8,538 | ) | | (8,538 | ) | ||||||||||||||
Less: net loss attributable to noncontrolling interest |
23 | | 23 | 507 | | 507 | ||||||||||||||||||
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Net loss attributable to PREIT |
$ | (557 | ) | $ | | $ | (557 | ) | $ | (8,031 | ) | $ | | $ | (8,031 | ) | ||||||||
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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 $589 and $602 for the quarters ended December 31, 2011 and 2010, respectively. |
Page 4
Pennsylvania Real Estate Investment Trust
Statement of Operations - Years Ended December 31, 2011 and December 31, 2010
Proportionate Consolidation Method
(in thousands)
Year Ended December 31, 2011 | Year Ended December 31, 2010 | |||||||||||||||||||||||||||||||
GAAP | Share
of unconsolidated partnerships(1) |
Discontinued operations |
Total | GAAP | Share
of unconsolidated partnerships(1) |
Discontinued operations |
Total | |||||||||||||||||||||||||
REVENUE: |
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Base rent |
$ | 293,345 | $ | 25,822 | $ | | $ | 319,167 | $ | 293,640 | $ | 25,663 | $ | 7,739 | $ | 327,042 | ||||||||||||||||
Expense reimbursements |
131,093 | 10,365 | | 141,458 | 131,877 | 10,568 | 1,750 | 144,195 | ||||||||||||||||||||||||
Percentage rent |
6,494 | 164 | | 6,658 | 5,585 | 136 | | 5,721 | ||||||||||||||||||||||||
Lease termination revenue |
1,859 | 78 | | 1,937 | 3,028 | 275 | | 3,303 | ||||||||||||||||||||||||
Other real estate revenue |
17,057 | 1,405 | | 18,462 | 16,235 | 1,450 | 8 | 17,693 | ||||||||||||||||||||||||
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Real estate revenue |
449,848 | 37,834 | | 487,682 | 450,365 | 38,092 | 9,497 | 497,954 | ||||||||||||||||||||||||
Interest and other income |
6,712 | | | 6,712 | 5,276 | | | 5,276 | ||||||||||||||||||||||||
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Total revenue |
456,560 | 37,834 | | 494,394 | 455,641 | 38,092 | 9,497 | 503,230 | ||||||||||||||||||||||||
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EXPENSES: |
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Operating expenses: |
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CAM and real estate taxes |
(144,427 | ) | (8,316 | ) | | (152,743 | ) | (142,767 | ) | (8,361 | ) | (1,904 | ) | (153,032 | ) | |||||||||||||||||
Utilities |
(24,530 | ) | (862 | ) | | (25,392 | ) | (26,030 | ) | (908 | ) | (7 | ) | (26,945 | ) | |||||||||||||||||
Other operating expenses |
(24,876 | ) | (2,277 | ) | | (27,153 | ) | (26,476 | ) | (2,498 | ) | (196 | ) | (29,170 | ) | |||||||||||||||||
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Total operating expenses |
(193,833 | ) | (11,455 | ) | | (205,288 | ) | (195,273 | ) | (11,767 | ) | (2,107 | ) | (209,147 | ) | |||||||||||||||||
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Depreciation and amortization |
(140,430 | ) | (8,403 | ) | | (148,833 | ) | (161,592 | ) | (8,656 | ) | (3,907 | ) | (174,155 | ) | |||||||||||||||||
Other expenses: |
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General and administrative expenses |
(38,901 | ) | | | (38,901 | ) | (38,973 | ) | | | (38,973 | ) | ||||||||||||||||||||
Impairment of assets |
(52,336 | ) | | | (52,336 | ) | | | | | ||||||||||||||||||||||
Project costs and other expenses |
(964 | ) | | | (964 | ) | (1,137 | ) | | | (1,137 | ) | ||||||||||||||||||||
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Total other expenses |
(92,201 | ) | | | (92,201 | ) | (40,110 | ) | | | (40,110 | ) | ||||||||||||||||||||
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Interest expense, net(2) |
(132,256 | ) | (11,341 | ) | | (143,597 | ) | (142,730 | ) | (8,619 | ) | (1,926 | ) | (153,275 | ) | |||||||||||||||||
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Total expenses |
(558,720 | ) | (31,199 | ) | | (589,919 | ) | (539,705 | ) | (29,042 | ) | (7,940 | ) | (576,687 | ) | |||||||||||||||||
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Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate |
(102,160 | ) | 6,635 | | (95,525 | ) | (84,064 | ) | 9,050 | 1,557 | (73,457 | ) | ||||||||||||||||||||
Equity in income of partnerships |
6,635 | (6,635 | ) | | | 9,050 | (9,050 | ) | | | ||||||||||||||||||||||
Gains on sales of real estate |
1,590 | | | 1,590 | | | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loss from continuing operations |
(93,935 | ) | | | (93,935 | ) | (75,014 | ) | | 1,557 | (73,457 | ) | ||||||||||||||||||||
Discontinued operations |
||||||||||||||||||||||||||||||||
Operating results from discontinued operations |
| | | | 1,557 | | (1,557 | ) | | |||||||||||||||||||||||
Gains on sales of discontinued operations |
| | | | 19,094 | | | 19,094 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Income from discontinued operations |
| | | | 20,651 | | (1,557 | ) | 19,094 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net loss |
(93,935 | ) | | | (93,935 | ) | (54,363 | ) | | | (54,363 | ) | ||||||||||||||||||||
Less: net loss attributable to noncontrolling interests |
3,774 | | | 3,774 | 2,436 | | | 2,436 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net loss attributable to PREIT |
$ | (90,161 | ) | $ | | $ | | $ | (90,161 | ) | $ | (51,927 | ) | $ | | $ | | $ | (51,927 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $2,032 and $2,561 for the years ended December 31, 2011 and 2010, respectively. |
Page 5
Pennsylvania Real Estate Investment Trust
Net Operating Income(1) - Quarters Ended December 31, 2011 and 2010
(in thousands)
Quarter Ended December 31, 2011 | Quarter Ended December 31, 2010 | |||||||||||||||||||||||
SAME STORE RETAIL/OTHER |
Same | Other | Total | Same | Other | Total | ||||||||||||||||||
Real estate revenue: |
||||||||||||||||||||||||
Base rent |
$ | 85,176 | $ | 360 | $ | 85,536 | $ | 85,083 | $ | 388 | $ | 85,471 | ||||||||||||
Expense reimbursements |
35,101 | 8 | 35,109 | 34,544 | 12 | 34,556 | ||||||||||||||||||
Percentage rent |
4,079 | | 4,079 | 3,366 | | 3,366 | ||||||||||||||||||
Lease termination revenue |
1,021 | | 1,021 | 478 | | 478 | ||||||||||||||||||
Other real estate revenue |
7,240 | 122 | 7,362 | 6,890 | 123 | 7,013 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL REAL ESTATE REVENUE |
132,617 | 490 | 133,107 | 130,361 | 523 | 130,884 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses: |
||||||||||||||||||||||||
CAM and real estate taxes |
(38,040 | ) | (432 | ) | (38,472 | ) | (37,215 | ) | (417 | ) | (37,632 | ) | ||||||||||||
Utilities |
(5,859 | ) | | (5,859 | ) | (6,197 | ) | | (6,197 | ) | ||||||||||||||
Other operating expenses |
(8,065 | ) | 4 | (8,061 | ) | (8,058 | ) | (39 | ) | (8,097 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL OPERATING EXPENSES |
(51,964 | ) | (428 | ) | (52,392 | ) | (51,470 | ) | (456 | ) | (51,926 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET OPERATING INCOME |
$ | 80,653 | $ | 62 | $ | 80,715 | $ | 78,891 | $ | 67 | $ | 78,958 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Quarter Ended December 31, 2011 | Quarter Ended December 31, 2010 | |||||||||||||||||||||||
SAME STORE RETAIL COMPARISON |
Malls | Strip and Power Centers |
Total | Malls | Strip and Power Centers |
Total | ||||||||||||||||||
Real estate revenue: |
||||||||||||||||||||||||
Base rent |
$ | 79,448 | $ | 5,728 | $ | 85,176 | $ | 79,505 | $ | 5,578 | $ | 85,083 | ||||||||||||
Expense reimbursements |
33,786 | 1,315 | 35,101 | 33,442 | 1,102 | 34,544 | ||||||||||||||||||
Percentage rent |
4,029 | 50 | 4,079 | 3,328 | 38 | 3,366 | ||||||||||||||||||
Lease termination revenue |
971 | 50 | 1,021 | 473 | 5 | 478 | ||||||||||||||||||
Other real estate revenue |
7,208 | 32 | 7,240 | 6,821 | 69 | 6,890 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL REAL ESTATE REVENUE |
125,442 | 7,175 | 132,617 | 123,569 | 6,792 | 130,361 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses: |
||||||||||||||||||||||||
CAM and real estate taxes |
(36,819 | ) | (1,221 | ) | (38,040 | ) | (35,974 | ) | (1,241 | ) | (37,215 | ) | ||||||||||||
Utilities |
(5,787 | ) | (72 | ) | (5,859 | ) | (6,133 | ) | (64 | ) | (6,197 | ) | ||||||||||||
Other operating expenses |
(7,961 | ) | (104 | ) | (8,065 | ) | (7,879 | ) | (179 | ) | (8,058 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL OPERATING EXPENSES |
(50,567 | ) | (1,397 | ) | (51,964 | ) | (49,986 | ) | (1,484 | ) | (51,470 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET OPERATING INCOME |
$ | 74,875 | $ | 5,778 | $ | 80,653 | $ | 73,583 | $ | 5,308 | $ | 78,891 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(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) - Years Ended December 31, 2011 and 2010
(in thousands)
Year Ended December 31, 2011 | Year Ended December 31, 2010 | |||||||||||||||||||||||
SAME STORE RETAIL/OTHER |
Same | Other | Total | Same | Other | Total | ||||||||||||||||||
Real estate revenue: |
||||||||||||||||||||||||
Base rent |
$ | 317,789 | $ | 1,378 | $ | 319,167 | $ | 317,724 | $ | 9,318 | $ | 327,042 | ||||||||||||
Expense reimbursements |
141,420 | 38 | 141,458 | 142,395 | 1,800 | 144,195 | ||||||||||||||||||
Percentage rent |
6,658 | | 6,658 | 5,721 | | 5,721 | ||||||||||||||||||
Lease termination revenue |
1,937 | | 1,937 | 3,303 | | 3,303 | ||||||||||||||||||
Other real estate revenue |
17,977 | 485 | 18,462 | 17,202 | 491 | 17,693 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL REAL ESTATE REVENUE |
485,781 | 1,901 | 487,682 | 486,345 | 11,609 | 497,954 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses: |
||||||||||||||||||||||||
CAM and real estate taxes |
(151,108 | ) | (1,635 | ) | (152,743 | ) | (149,685 | ) | (3,347 | ) | (153,032 | ) | ||||||||||||
Utilities |
(25,391 | ) | (1 | ) | (25,392 | ) | (26,938 | ) | (7 | ) | (26,945 | ) | ||||||||||||
Other operating expenses |
(27,037 | ) | (116 | ) | (27,153 | ) | (28,788 | ) | (382 | ) | (29,170 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL OPERATING EXPENSES |
(203,536 | ) | (1,752 | ) | (205,288 | ) | (205,411 | ) | (3,736 | ) | (209,147 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET OPERATING INCOME |
$ | 282,245 | $ | 149 | $ | 282,394 | $ | 280,934 | $ | 7,873 | $ | 288,807 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Year Ended December 31, 2011 | Year Ended December 31, 2010 | |||||||||||||||||||||||
SAME STORE RETAIL COMPARISON |
Malls | Strip and Power Centers |
Total | Malls | Strip and Power Centers |
Total | ||||||||||||||||||
Real estate revenue: |
||||||||||||||||||||||||
Base rent |
$ | 295,346 | $ | 22,443 | $ | 317,789 | $ | 295,114 | $ | 22,610 | $ | 317,724 | ||||||||||||
Expense reimbursements |
136,337 | 5,083 | 141,420 | 137,320 | 5,075 | 142,395 | ||||||||||||||||||
Percentage rent |
6,538 | 120 | 6,658 | 5,660 | 61 | 5,721 | ||||||||||||||||||
Lease termination revenue |
1,272 | 665 | 1,937 | 3,298 | 5 | 3,303 | ||||||||||||||||||
Other real estate revenue |
17,787 | 190 | 17,977 | 16,972 | 230 | 17,202 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL REAL ESTATE REVENUE |
457,280 | 28,501 | 485,781 | 458,364 | 27,981 | 486,345 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses: |
||||||||||||||||||||||||
CAM and real estate taxes |
(145,952 | ) | (5,156 | ) | (151,108 | ) | (144,329 | ) | (5,356 | ) | (149,685 | ) | ||||||||||||
Utilities |
(25,119 | ) | (272 | ) | (25,391 | ) | (26,684 | ) | (254 | ) | (26,938 | ) | ||||||||||||
Other operating expenses |
(26,475 | ) | (562 | ) | (27,037 | ) | (28,095 | ) | (693 | ) | (28,788 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL OPERATING EXPENSES |
(197,546 | ) | (5,990 | ) | (203,536 | ) | (199,108 | ) | (6,303 | ) | (205,411 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET OPERATING INCOME |
$ | 259,734 | $ | 22,511 | $ | 282,245 | $ | 259,256 | $ | 21,678 | $ | 280,934 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(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
Computation of
Earnings Per Share
(in thousands, except per share amounts)
Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Loss from continuing operations |
$ | (580 | ) | $ | (8,482 | ) | $ | (93,935 | ) | $ | (75,014 | ) | ||||
Noncontrolling interest in continuing operations |
23 | 505 | 3,774 | 3,270 | ||||||||||||
Dividends on unvested restricted shares |
(143 | ) | (174 | ) | (547 | ) | (615 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from continuing operations used to calculate earnings per share - basic and diluted |
$ | (700 | ) | $ | (8,151 | ) | $ | (90,708 | ) | $ | (72,359 | ) | ||||
|
|
|
|
|
|
|
|
|||||||||
(Loss) income from discontinued operations |
$ | | $ | (56 | ) | $ | | $ | 20,651 | |||||||
Noncontrolling interest in discontinued operations |
| 2 | | (834 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
(Loss) income from discontinued operations used to calculate earnings per share - basic and diluted |
$ | | $ | (54 | ) | $ | | $ | 19,817 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Basic loss per share |
||||||||||||||||
Loss from continuing operations |
$ | (0.01 | ) | $ | (0.15 | ) | $ | (1.66 | ) | $ | (1.43 | ) | ||||
Income from discontinued operations |
| (0.00 | ) | | 0.39 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | (0.01 | ) | $ | (0.15 | ) | $ | (1.66 | ) | $ | (1.04 | ) | |||||
|
|
|
|
|
|
|
|
|||||||||
Diluted loss per share |
||||||||||||||||
Loss from continuing operations |
$ | (0.01 | ) | $ | (0.15 | ) | $ | (1.66 | ) | $ | (1.43 | ) | ||||
Income from discontinued operations |
| (0.00 | ) | | 0.39 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | (0.01 | ) | $ | (0.15 | ) | $ | (1.66 | ) | $ | (1.04 | ) | |||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares outstanding |
55,668 | 55,386 | 55,621 | 51,733 | ||||||||||||
Weighted average unvested restricted shares |
(951 | ) | (1,163 | ) | (982 | ) | (1,091 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding - basic |
54,717 | 54,223 | 54,639 | 50,642 | ||||||||||||
Weighted average effect of common share equivalents(1) |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total weighted average shares outstanding - diluted |
54,717 | 54,223 | 54,639 | 50,642 | ||||||||||||
|
|
|
|
|
|
|
|
(1) | The Company had net losses from continuing operations for all periods presented. Therefore, the effect of common share equivalents of 369 and 781 for the quarters ended December 31, 2011 and 2010, respectively, and 502 and 502 for the years ended December 31, 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 December 31, 2011 | Quarter Ended December 31, 2010 | |||||||||||||||||||||||
Consolidated | Share of unconsolidated partnerships |
Total | Consolidated | Share of unconsolidated partnerships |
Total | |||||||||||||||||||
FUNDS FROM OPERATIONS (FFO) |
||||||||||||||||||||||||
Real estate revenue(1) |
$ | 123,132 | $ | 9,975 | $ | 133,107 | $ | 121,084 | $ | 9,800 | $ | 130,884 | ||||||||||||
Operating expenses |
(49,475 | ) | (2,917 | ) | (52,392 | ) | (48,974 | ) | (2,952 | ) | (51,926 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET OPERATING INCOME |
73,657 | 7,058 | 80,715 | 72,110 | 6,848 | 78,958 | ||||||||||||||||||
General and administrative expenses |
(10,390 | ) | | (10,390 | ) | (10,712 | ) | | (10,712 | ) | ||||||||||||||
Interest and other income |
1,004 | | 1,004 | 1,145 | | 1,145 | ||||||||||||||||||
Project costs and other expenses |
(532 | ) | | (532 | ) | (125 | ) | | (125 | ) | ||||||||||||||
Interest expense, net |
(31,855 | ) | (2,828 | ) | (34,683 | ) | (34,142 | ) | (2,617 | ) | (36,759 | ) | ||||||||||||
Gains on sales of non-operating real estate |
140 | | 140 | | | | ||||||||||||||||||
Depreciation on non real estate assets |
(228 | ) | | (228 | ) | (324 | ) | | (324 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
FFO |
31,796 | 4,230 | 36,026 | 27,952 | 4,231 | 32,183 | ||||||||||||||||||
Depreciation on real estate assets |
(34,397 | ) | (2,209 | ) | (36,606 | ) | (38,591 | ) | (2,074 | ) | (40,665 | ) | ||||||||||||
Equity in income of partnerships |
2,021 | (2,021 | ) | | 2,157 | (2,157 | ) | | ||||||||||||||||
Adjustments to gain on sales of discontinued operations |
| | | (56 | ) | | (56 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net loss |
$ | (580 | ) | $ | | $ | (580 | ) | $ | (8,538 | ) | $ | | $ | (8,538 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
FUNDS AVAILABLE FOR DISTRIBUTION (FAD) |
||||||||||||||||||||||||
FFO |
$ | 31,796 | $ | 4,230 | $ | 36,026 | $ | 27,952 | $ | 4,231 | $ | 32,183 | ||||||||||||
Adjustments: |
||||||||||||||||||||||||
Straight line rent |
(235 | ) | 49 | (186 | ) | (197 | ) | 244 | 47 | |||||||||||||||
Recurring capital expenditures |
(5,815 | ) | (174 | ) | (5,989 | ) | (8,216 | ) | (127 | ) | (8,343 | ) | ||||||||||||
Tenant allowances |
(3,366 | ) | (139 | ) | (3,505 | ) | (7,664 | ) | 7 | (7,657 | ) | |||||||||||||
Capitalized leasing costs |
(1,245 | ) | | (1,245 | ) | (1,336 | ) | | (1,336 | ) | ||||||||||||||
Amortization of mortgage loan premium |
(419 | ) | | (419 | ) | (290 | ) | | (290 | ) | ||||||||||||||
Amortization of above- and below-market lease intangibles |
56 | (41 | ) | 15 | 62 | (51 | ) | 11 | ||||||||||||||||
Amortization of exchangeable notes debt discount |
500 | | 500 | 473 | | 473 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
FAD |
$ | 21,272 | $ | 3,925 | $ | 25,197 | $ | 10,784 | $ | 4,304 | $ | 15,088 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Weighted average number of shares outstanding |
54,717 | 54,223 | ||||||||||||||||||||||
Weighted average effect of full conversion of OP Units |
2,329 | 2,329 | ||||||||||||||||||||||
Effect of common share equivalents |
369 | 781 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total weighted average shares outstanding, including OP Units |
57,415 | 57,333 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
FFO |
$ | 36,026 | $ | 32,183 | ||||||||||||||||||||
FFO PER DILUTED SHARE AND OP UNIT |
$ | 0.63 | $ | 0.56 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
FAD PER DILUTED SHARE AND OP UNIT |
$ | 0.44 | $ | 0.26 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
DIVIDEND PER COMMON SHARE |
$ | 0.15 | $ | 0.15 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
PAYOUT RATIOS |
||||||||||||||||||||||||
Payout ratio of FFO |
32.7 | % (2) | 32.3 | % (3) | ||||||||||||||||||||
Payout ratio of FAD |
49.3 | % (2) | 53.7 | % (3) |
(1) | Total includes the non-cash effect of straight-line rent. |
(2) | Twelve months ended December 31, 2011. |
(3) | Twelve months ended December 31, 2010. |
Page 9
Pennsylvania Real Estate Investment Trust
Funds From Operations and Funds Available for Distribution
(in thousands, except per share amounts)
Year Ended December 31, 2011 | Year Ended December 31, 2010 | |||||||||||||||||||||||||||||||
Consolidated | Share of unconsolidated partnerships |
Discontinued operations |
Total | Consolidated | Share of unconsolidated partnerships |
Discontinued operations |
Total | |||||||||||||||||||||||||
FUNDS FROM OPERATIONS (FFO) |
||||||||||||||||||||||||||||||||
Real estate revenue(1) |
$ | 449,848 | $ | 37,834 | $ | | $ | 487,682 | $ | 450,365 | $ | 38,092 | $ | 9,497 | $ | 497,954 | ||||||||||||||||
Operating expenses |
(193,833 | ) | (11,455 | ) | | (205,288 | ) | (195,273 | ) | (11,767 | ) | (2,107 | ) | (209,147 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
NET OPERATING INCOME |
256,015 | 26,379 | | 282,394 | 255,092 | 26,325 | 7,390 | 288,807 | ||||||||||||||||||||||||
General and administrative expenses |
(38,901 | ) | | | (38,901 | ) | (38,973 | ) | | | (38,973 | ) | ||||||||||||||||||||
Interest and other income |
6,712 | | | 6,712 | 5,276 | | | 5,276 | ||||||||||||||||||||||||
Project costs and other expenses |
(964 | ) | | | (964 | ) | (1,137 | ) | | | (1,137 | ) | ||||||||||||||||||||
Interest expense, net |
(132,256 | ) | (11,341 | ) | | (143,597 | ) | (142,730 | ) | (8,619 | ) | (1,926 | ) | (153,275 | ) | |||||||||||||||||
Gains on sales of non operating real estate |
850 | | | 850 | | | | | ||||||||||||||||||||||||
Depreciation on non real estate assets |
(909 | ) | | | (909 | ) | (1,484 | ) | | | (1,484 | ) | ||||||||||||||||||||
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FFO |
90,547 | 15,038 | | 105,585 | 76,044 | 17,706 | 5,464 | 99,214 | ||||||||||||||||||||||||
Gains on sales of real estate |
740 | | | 740 | | | | | ||||||||||||||||||||||||
Depreciation on real estate assets |
(139,521 | ) | (8,403 | ) | | (147,924 | ) | (160,108 | ) | (8,656 | ) | (3,907 | ) | (172,671 | ) | |||||||||||||||||
Impairment of assets |
(52,336 | ) | | | (52,336 | ) | | | | | ||||||||||||||||||||||
Equity in income of partnerships |
6,635 | (6,635 | ) | | | 9,050 | (9,050 | ) | | | ||||||||||||||||||||||
Income from discontinued operations |
| | | | 1,557 | | (1,557 | ) | | |||||||||||||||||||||||
Gain on sale of discontinued operations |
| | | | 19,094 | | | 19,094 | ||||||||||||||||||||||||
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Net loss |
$ | (93,935 | ) | $ | | $ | | $ | (93,935 | ) | $ | (54,363 | ) | $ | | $ | | $ | (54,363 | ) | ||||||||||||
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FUNDS AVAILABLE FOR DISTRIBUTION (FAD) |
||||||||||||||||||||||||||||||||
FFO |
$ | 90,547 | $ | 15,038 | $ | | $ | 105,585 | $ | 76,044 | $ | 17,706 | $ | 5,464 | $ | 99,214 | ||||||||||||||||
Adjustments: |
||||||||||||||||||||||||||||||||
Straight line rent |
(330 | ) | 232 | | (98 | ) | (1,378 | ) | 319 | (88 | ) | (1,147 | ) | |||||||||||||||||||
Recurring capital expenditures |
(16,499 | ) | (422 | ) | | (16,921 | ) | (15,792 | ) | (183 | ) | | (15,975 | ) | ||||||||||||||||||
Tenant allowances |
(13,793 | ) | (513 | ) | | (14,306 | ) | (18,129 | ) | (418 | ) | | (18,547 | ) | ||||||||||||||||||
Capitalized leasing costs |
(4,999 | ) | | | (4,999 | ) | (4,459 | ) | | | (4,459 | ) | ||||||||||||||||||||
Amortization of mortgage loan premium |
(1,287 | ) | | | (1,287 | ) | (1,175 | ) | | | (1,175 | ) | ||||||||||||||||||||
Amortization of above- and below-market lease intangibles |
217 | (176 | ) | | 41 | 240 | (244 | ) | | (4 | ) | |||||||||||||||||||||
Amortization of exchangeable notes debt discount |
1,960 | | | 1,960 | 1,855 | | | 1,855 | ||||||||||||||||||||||||
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FAD |
$ | 55,816 | $ | 14,159 | $ | | $ | 69,975 | $ | 37,206 | $ | 17,180 | $ | 5,376 | $ | 59,762 | ||||||||||||||||
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Weighted average number of shares outstanding |
54,639 | 50,642 | ||||||||||||||||||||||||||||||
Weighted average effect of full conversion of OP Units |
2,329 | 2,329 | ||||||||||||||||||||||||||||||
Effect of common share equivalents |
502 | 502 | ||||||||||||||||||||||||||||||
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Total weighted average shares outstanding, including OP Units |
57,470 | 53,473 | ||||||||||||||||||||||||||||||
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FFO |
$ | 105,585 | $ | 99,214 | ||||||||||||||||||||||||||||
Accelerated amortization of deferred financing fees |
| 3,652 | ||||||||||||||||||||||||||||||
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FFO AS ADJUSTED |
$ | 105,585 | $ | 102,866 | ||||||||||||||||||||||||||||
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FFO PER DILUTED SHARE AND OP UNIT |
$ | 1.84 | $ | 1.86 | ||||||||||||||||||||||||||||
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FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED |
|
$ | 1.84 | $ | 1.93 | |||||||||||||||||||||||||||
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FAD PER DILUTED SHARE AND OP UNIT |
$ | 1.22 | $ | 1.12 | ||||||||||||||||||||||||||||
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DIVIDEND PER COMMON SHARE |
$ | 0.60 | $ | 0.60 | ||||||||||||||||||||||||||||
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PAYOUT RATIOS |
||||||||||||||||||||||||||||||||
Payout ratio of FFO |
32.7 | % (2) | 32.3 | % (3) | ||||||||||||||||||||||||||||
Payout ratio of FFO as adjusted |
32.7 | % (2) | 31.0 | % (3) | ||||||||||||||||||||||||||||
Payout ratio of FAD |
49.3 | % (2) | 53.7 | % (3) |
(1) | Total includes the non-cash effect of straight-line rent. |
(2) | Twelve months ended December 31, 2011. |
(3) | Twelve months ended December 31, 2010. |
Page 10
Pennsylvania Real Estate Investment Trust
2011 Leasing Activity Summary
Average Base Rent psf | Change in Base Rent psf | |||||||||||||||||||||||||||
Number | GLA | Previous | New | Dollar | Percentage | Annualized Tenant Improvements psf(1) |
||||||||||||||||||||||
New Leases - Previously Leased Space: |
||||||||||||||||||||||||||||
1st Quarter(2) |
21 | 77,140 | $ | 22.24 | $ | 19.68 | $ | (2.56 | ) | -11.5 | % | $ | 1.39 | |||||||||||||||
2nd Quarter(3) |
27 | 82,868 | 21.79 | 21.97 | 0.18 | 0.8 | % | 1.45 | ||||||||||||||||||||
3rd Quarter(4) |
30 | 102,554 | 24.39 | 18.87 | (5.52 | ) | -22.6 | % | 0.82 | |||||||||||||||||||
4th Quarter(5) |
35 | 110,812 | 19.58 | 18.71 | (0.87 | ) | -4.4 | % | 0.60 | |||||||||||||||||||
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Total/Average |
113 | 373,374 | $ | 21.94 | $ | 19.68 | $ | (2.26 | ) | -10.3 | % | $ | 1.01 | |||||||||||||||
New Leases - Previously Vacant Space: (6) |
||||||||||||||||||||||||||||
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 | |||||||||||||||||||||
3rd Quarter |
41 | 225,145 | N/A | 16.56 | 16.56 | N/A | 2.28 | |||||||||||||||||||||
4th Quarter |
23 | 74,087 | N/A | 20.08 | 20.08 | N/A | 2.86 | |||||||||||||||||||||
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Total/Average |
123 | 495,698 | N/A | $ | 17.54 | $ | 17.54 | N/A | $ | 2.58 | ||||||||||||||||||
Renewal: (7) |
||||||||||||||||||||||||||||
1st Quarter(2) |
81 | 310,673 | $ | 22.22 | $ | 22.23 | $ | 0.01 | 0.0 | % | $ | 0.09 | ||||||||||||||||
2nd Quarter(3) |
92 | 321,947 | 22.37 | 22.89 | 0.52 | 2.3 | % | 0.05 | ||||||||||||||||||||
3rd Quarter(4) |
109 | 367,407 | 21.59 | 21.70 | 0.11 | 0.5 | % | 0.05 | ||||||||||||||||||||
4th Quarter(5) |
109 | 409,349 | 18.97 | 19.83 | 0.86 | 4.5 | % | | ||||||||||||||||||||
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Total/Average |
391 | 1,409,376 | $ | 21.15 | $ | 21.55 | $ | 0.40 | 1.9 | % | $ | 0.04 | ||||||||||||||||
Anchor New: |
||||||||||||||||||||||||||||
1st Quarter |
0 | | N/A | $ | | $ | | N/A | $ | | ||||||||||||||||||
2nd Quarter |
0 | | N/A | | | N/A | | |||||||||||||||||||||
3rd Quarter |
1 | 113,692 | N/A | 1.89 | 1.89 | N/A | | |||||||||||||||||||||
4th Quarter |
0 | | N/A | | | N/A | | |||||||||||||||||||||
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Total/Average |
1 | 113,692 | N/A | $ | 1.89 | $ | 1.89 | N/A | $ | | ||||||||||||||||||
Anchor Renewal: |
||||||||||||||||||||||||||||
1st Quarter |
5 | 367,162 | $ | 2.73 | $ | 2.73 | $ | | 0.0 | % | $ | | ||||||||||||||||
2nd Quarter |
4 | 436,916 | 2.40 | 2.40 | | 0.0 | % | | ||||||||||||||||||||
3rd Quarter |
1 | 155,392 | 1.56 | 1.56 | | 0.0 | % | | ||||||||||||||||||||
4th Quarter |
3 | 321,974 | 2.26 | 2.26 | | 0.0 | % | 0.16 | ||||||||||||||||||||
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Total/Average |
13 | 1,281,444 | $ | 2.36 | $ | 2.36 | $ | | 0.0 | % | $ | 0.04 |
(1) | These leasing costs are presented as annualized costs per square foot and are spread uniformly over the initial lease term. |
(2) | 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. |
(3) | 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. |
(4) | Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were -14.8% for New Leases - Previously Leased Space and 0.3% for Renewals. |
(5) | Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were -14.0% for New Leases - Previously Leased Space and 3.5% for Renewals. |
(6) | This category includes newly constructed and recommissioned space. |
(7) | This category includes expansions, relocations and lease extensions. |
Page 11
Pennsylvania Real Estate Investment Trust
Summarized Rent Per Square Foot and Occupancy(1) Percentages
December 31, 2011 | December 31, 2010 | Change | ||||||||||||||||||||||||||||||||||
Occupancy | Occupancy | Occupancy | ||||||||||||||||||||||||||||||||||
Avg Base Rent |
Total | Non-Anchor | Avg Base Rent |
Total | Non-Anchor | Avg Base Rent |
Total | Non-Anchor | ||||||||||||||||||||||||||||
Malls weighted average(2) |
$ | 31.77 | 92.9 | % | 89.7 | % | $ | 32.47 | 92.1 | % | 89.4 | % | -2.2 | % | 0.8 | % | 0.3 | % | ||||||||||||||||||
Strip and Power Centers weighted average |
$ | 16.19 | 93.8 | % | 93.8 | % | $ | 16.36 | 95.5 | % | 93.3 | % | -1.0 | % | -1.7 | % | 0.5 | % | ||||||||||||||||||
Retail Portfolio weighted average |
$ | 28.39 | 93.0 | % | 90.2 | % | $ | 28.80 | 92.5 | % | 90.0 | % | -1.4 | % | 0.5 | % | 0.2 | % | ||||||||||||||||||
Consolidated Properties |
$ | 29.78 | 92.9 | % | 89.5 | % | $ | 30.44 | 92.1 | % | 89.2 | % | -2.2 | % | 0.8 | % | 0.3 | % | ||||||||||||||||||
Unconsolidated Properties |
$ | 23.55 | 94.1 | % | 94.6 | % | $ | 23.36 | 95.6 | % | 94.1 | % | 0.8 | % | -1.5 | % | 0.5 | % | ||||||||||||||||||
Same Properties |
$ | 28.39 | 93.0 | % | 90.2 | % | $ | 28.80 | 92.5 | % | 90.0 | % | -1.4 | % | 0.5 | % | 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 $14.28/sq ft as of December 31, 2011 and $14.36/sq ft as of December 31, 2010. |
Page 12
Pennsylvania Real Estate Investment Trust
Mall Sales and Rent Per Square Foot
December 31, 2011 | December 31, 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 |
31.4 | % | ||||||||||||||||||||||||||||||||||||||
Cherry Hill Mall |
$ | 48.02 | $ | 599 | 12.7 | % | $ | 45.71 | $ | 559 | 13.6 | % | 5.1 | % | 7.2 | % | -0.9 | % | ||||||||||||||||||||||
Lehigh Valley Mall |
45.44 | 526 | 11.7 | % | 45.10 | 516 | 12.7 | % | 0.8 | % | 1.9 | % | -1.0 | % | ||||||||||||||||||||||||||
Woodland Mall |
40.07 | 526 | 12.3 | % | 40.85 | 499 | 12.9 | % | -1.9 | % | 5.4 | % | -0.6 | % | ||||||||||||||||||||||||||
Jacksonville Mall |
32.90 | 489 | 10.4 | % | 32.88 | 490 | 10.2 | % | 0.1 | % | -0.2 | % | 0.2 | % | ||||||||||||||||||||||||||
Dartmouth Mall |
30.83 | 411 | 11.0 | % | 30.49 | 361 | 12.1 | % | 1.1 | % | 13.9 | % | -1.1 | % | ||||||||||||||||||||||||||
Willow Grove Park |
42.49 | 400 | 16.4 | % | 44.10 | 390 | 16.9 | % | -3.7 | % | 2.6 | % | -0.5 | % | ||||||||||||||||||||||||||
Sales per square foot between $350 - $400 |
32.4 | % | ||||||||||||||||||||||||||||||||||||||
The Mall at Prince Georges |
37.35 | 388 | 14.6 | % | 36.87 | 365 | 15.1 | % | 1.3 | % | 6.3 | % | -0.5 | % | ||||||||||||||||||||||||||
Patrick Henry Mall |
39.44 | 382 | 14.5 | % | 39.65 | 392 | 14.2 | % | -0.5 | % | -2.6 | % | 0.3 | % | ||||||||||||||||||||||||||
Viewmont Mall |
29.21 | 377 | 12.7 | % | 29.71 | 369 | 13.0 | % | -1.7 | % | 2.2 | % | -0.3 | % | ||||||||||||||||||||||||||
The Gallery at Market East |
38.07 | 374 | 14.0 | % | 38.51 | 359 | 13.7 | % | -1.1 | % | 4.2 | % | 0.3 | % | ||||||||||||||||||||||||||
Valley View Mall |
29.27 | 372 | 12.1 | % | 30.49 | 366 | 11.7 | % | -4.0 | % | 1.6 | % | 0.4 | % | ||||||||||||||||||||||||||
Wyoming Valley Mall |
30.42 | 372 | 12.1 | % | 30.95 | 361 | 13.1 | % | -1.7 | % | 3.0 | % | -1.0 | % | ||||||||||||||||||||||||||
Springfield Mall |
33.92 | 368 | 14.3 | % | 34.06 | 349 | 14.3 | % | -0.4 | % | 5.4 | % | 0.0 | % | ||||||||||||||||||||||||||
Valley Mall |
25.17 | 364 | 10.8 | % | 26.16 | 314 | 11.7 | % | -3.8 | % | 15.9 | % | -0.9 | % | ||||||||||||||||||||||||||
Moorestown Mall |
35.67 | 363 | 14.9 | % | 36.61 | 378 | 15.1 | % | -2.6 | % | -4.0 | % | -0.2 | % | ||||||||||||||||||||||||||
Crossroads Mall |
21.46 | 354 | 9.1 | % | 21.06 | 313 | 9.8 | % | 1.9 | % | 13.1 | % | -0.7 | % | ||||||||||||||||||||||||||
Capital City Mall |
33.63 | 353 | 11.9 | % | 32.83 | 347 | 11.8 | % | 2.4 | % | 1.7 | % | 0.1 | % | ||||||||||||||||||||||||||
Sales per square foot between $300 - $349 |
16.1 | % | ||||||||||||||||||||||||||||||||||||||
Francis Scott Key Mall |
27.66 | 335 | 11.5 | % | 27.19 | 334 | 11.5 | % | 1.7 | % | 0.3 | % | 0.0 | % | ||||||||||||||||||||||||||
Exton Square Mall |
35.07 | 332 | 13.4 | % | 37.62 | 317 | 14.5 | % | -6.8 | % | 4.7 | % | -1.1 | % | ||||||||||||||||||||||||||
Magnolia Mall |
27.41 | 324 | 12.9 | % | 27.11 | 318 | 12.6 | % | 1.1 | % | 1.9 | % | 0.3 | % | ||||||||||||||||||||||||||
Plymouth Meeting Mall |
29.33 | 323 | 10.4 | % | 29.84 | 321 | 9.6 | % | -1.7 | % | 0.6 | % | 0.8 | % | ||||||||||||||||||||||||||
Logan Valley Mall |
25.68 | 314 | 11.4 | % | 26.89 | 306 | 11.5 | % | -4.5 | % | 2.6 | % | -0.1 | % | ||||||||||||||||||||||||||
Cumberland Mall |
28.13 | 313 | 13.1 | % | 28.58 | 306 | 13.7 | % | -1.5 | % | 2.3 | % | -0.6 | % | ||||||||||||||||||||||||||
Sales per square foot under $300 |
20.1 | % | ||||||||||||||||||||||||||||||||||||||
Palmer Park Mall |
24.08 | 293 | 12.0 | % | 25.53 | 285 | 11.2 | % | -5.7 | % | 2.8 | % | 0.8 | % | ||||||||||||||||||||||||||
Gadsden Mall |
21.04 | 292 | 10.2 | % | 21.52 | 274 | 9.3 | % | -2.2 | % | 6.6 | % | 0.9 | % | ||||||||||||||||||||||||||
Uniontown Mall |
22.53 | 287 | 10.7 | % | 22.96 | 282 | 10.8 | % | -1.9 | % | 1.8 | % | -0.1 | % | ||||||||||||||||||||||||||
New River Valley Mall |
23.43 | 287 | 10.0 | % | 23.86 | 270 | 10.6 | % | -1.8 | % | 6.3 | % | -0.6 | % | ||||||||||||||||||||||||||
Wiregrass Commons Mall |
24.94 | 281 | 10.9 | % | 27.05 | 278 | 11.6 | % | -7.8 | % | 1.1 | % | -0.7 | % | ||||||||||||||||||||||||||
Nittany Mall |
20.95 | 273 | 10.9 | % | 22.36 | 277 | 11.1 | % | -6.3 | % | -1.4 | % | -0.2 | % | ||||||||||||||||||||||||||
Lycoming Mall |
20.95 | 265 | 10.2 | % | 21.29 | 255 | 10.3 | % | -1.6 | % | 3.9 | % | -0.1 | % | ||||||||||||||||||||||||||
North Hanover Mall |
23.56 | 261 | 12.5 | % | 26.13 | 269 | 12.6 | % | -9.8 | % | -3.0 | % | -0.1 | % | ||||||||||||||||||||||||||
Washington Crown Center |
19.51 | 253 | 10.8 | % | 20.63 | 234 | 11.7 | % | -5.4 | % | 8.1 | % | -0.9 | % | ||||||||||||||||||||||||||
Orlando Fashion Square |
29.91 | 250 | 14.6 | % | 30.90 | 234 | 17.0 | % | -3.2 | % | 6.8 | % | -2.4 | % | ||||||||||||||||||||||||||
South Mall |
21.94 | 246 | 12.6 | % | 23.27 | 227 | 12.3 | % | -5.7 | % | 8.4 | % | 0.3 | % | ||||||||||||||||||||||||||
Beaver Valley Mall |
21.73 | 240 | 13.3 | % | 22.00 | 250 | 13.5 | % | -1.2 | % | -4.0 | % | -0.2 | % | ||||||||||||||||||||||||||
Phillipsburg Mall |
22.44 | 238 | 11.7 | % | 24.89 | 210 | 12.2 | % | -9.8 | % | 13.3 | % | -0.5 | % | ||||||||||||||||||||||||||
Chambersburg Mall |
21.01 | 230 | 9.3 | % | 24.26 | 240 | 9.6 | % | -13.4 | % | -4.2 | % | -0.3 | % | ||||||||||||||||||||||||||
Voorhees Town Center |
27.42 | 211 | 12.4 | % | 31.24 | 208 | 12.3 | % | -12.2 | % | 1.4 | % | 0.1 | % | ||||||||||||||||||||||||||
Malls weighted average |
$ | 31.77 | $ | 365 | 12.4 | % | $ | 32.47 | $ | 350 | 12.8 | % | -2.2 | % | 4.3 | % | -0.4 | % | ||||||||||||||||||||||
Consolidated Properties |
$ | 30.89 | $ | 354 | 12.4 | % | $ | 31.65 | $ | 339 | 12.8 | % | -2.4 | % | 4.4 | % | -0.4 | % | ||||||||||||||||||||||
Unconsolidated Properties |
$ | 41.78 | $ | 474 | 12.4 | % | $ | 41.46 | $ | 461 | 13.1 | % | 0.8 | % | 2.8 | % | -0.7 | % | ||||||||||||||||||||||
Same Properties |
$ | 31.77 | $ | 365 | 12.4 | % | $ | 32.47 | $ | 350 | 12.8 | % | -2.2 | % | 4.3 | % | -0.4 | % |
(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
December 31, 2011 | December 31, 2010 | Change | ||||||||||||||||||||||
Total | Non-Anchor | Total | Non-Anchor | Total | Non-Anchor | |||||||||||||||||||
Beaver Valley Mall |
92.5 | % | 83.9 | % | 91.3 | % | 81.3 | % | 1.2 | % | 2.6 | % | ||||||||||||
Capital City Mall |
98.2 | % | 96.9 | % | 99.1 | % | 98.5 | % | -0.9 | % | -1.6 | % | ||||||||||||
Chambersburg Mall |
87.8 | % | 73.9 | % | 87.4 | % | 73.0 | % | 0.4 | % | 0.9 | % | ||||||||||||
Cherry Hill Mall |
94.7 | % | 93.7 | % | 94.7 | % | 93.6 | % | 0.0 | % | 0.1 | % | ||||||||||||
Crossroads Mall |
95.9 | % | 91.2 | % | 91.4 | % | 80.4 | % | 4.5 | % | 10.8 | % | ||||||||||||
Cumberland Mall |
93.6 | % | 89.4 | % | 94.5 | % | 91.0 | % | -0.9 | % | -1.6 | % | ||||||||||||
Dartmouth Mall |
97.9 | % | 96.5 | % | 99.0 | % | 98.4 | % | -1.1 | % | -1.9 | % | ||||||||||||
Exton Square Mall |
93.1 | % | 84.8 | % | 92.5 | % | 83.4 | % | 0.6 | % | 1.4 | % | ||||||||||||
Francis Scott Key Mall |
97.9 | % | 96.6 | % | 99.0 | % | 98.1 | % | -1.1 | % | -1.5 | % | ||||||||||||
Gadsden Mall |
96.2 | % | 90.5 | % | 93.8 | % | 84.6 | % | 2.4 | % | 5.9 | % | ||||||||||||
The Gallery at Market East(2) |
62.2 | % | 79.8 | % | 62.3 | % | 80.1 | % | -0.1 | % | -0.3 | % | ||||||||||||
Jacksonville Mall |
100.0 | % | 100.0 | % | 99.6 | % | 99.2 | % | 0.4 | % | 0.8 | % | ||||||||||||
Lehigh Valley Mall |
96.6 | % | 95.4 | % | 96.2 | % | 94.8 | % | 0.4 | % | 0.6 | % | ||||||||||||
Logan Valley Mall |
97.5 | % | 94.1 | % | 96.4 | % | 91.5 | % | 1.1 | % | 2.6 | % | ||||||||||||
Lycoming Mall |
97.5 | % | 95.3 | % | 96.9 | % | 94.2 | % | 0.6 | % | 1.1 | % | ||||||||||||
Magnolia Mall |
99.1 | % | 97.9 | % | 99.0 | % | 97.8 | % | 0.1 | % | 0.1 | % | ||||||||||||
Moorestown Mall |
93.8 | % | 86.2 | % | 93.7 | % | 86.0 | % | 0.1 | % | 0.2 | % | ||||||||||||
New River Valley Mall |
98.4 | % | 97.3 | % | 97.0 | % | 95.0 | % | 1.4 | % | 2.3 | % | ||||||||||||
Nittany Mall |
95.6 | % | 91.2 | % | 95.3 | % | 90.5 | % | 0.3 | % | 0.7 | % | ||||||||||||
North Hanover Mall |
96.3 | % | 91.2 | % | 92.9 | % | 83.0 | % | 3.4 | % | 8.2 | % | ||||||||||||
Orlando Fashion Square |
91.3 | % | 81.5 | % | 92.0 | % | 83.0 | % | -0.7 | % | -1.5 | % | ||||||||||||
Palmer Park Mall |
96.6 | % | 89.2 | % | 96.6 | % | 89.1 | % | 0.0 | % | 0.1 | % | ||||||||||||
Patrick Henry Mall |
98.9 | % | 97.9 | % | 97.9 | % | 95.9 | % | 1.0 | % | 2.0 | % | ||||||||||||
Phillipsburg Mall |
89.2 | % | 75.1 | % | 92.1 | % | 81.8 | % | -2.9 | % | -6.7 | % | ||||||||||||
Plymouth Meeting Mall |
85.9 | % | 78.6 | % | 86.9 | % | 80.0 | % | -1.0 | % | -1.4 | % | ||||||||||||
The Mall at Prince Georges |
97.0 | % | 93.7 | % | 95.7 | % | 91.0 | % | 1.3 | % | 2.7 | % | ||||||||||||
South Mall |
88.0 | % | 81.7 | % | 90.4 | % | 85.4 | % | -2.4 | % | -3.7 | % | ||||||||||||
Springfield Mall |
95.8 | % | 95.8 | % | 96.9 | % | 96.9 | % | -1.1 | % | -1.1 | % | ||||||||||||
Uniontown Mall |
86.7 | % | 77.4 | % | 93.7 | % | 84.1 | % | -7.0 | % | -6.7 | % | ||||||||||||
Valley Mall |
97.7 | % | 96.1 | % | 97.6 | % | 95.8 | % | 0.1 | % | 0.3 | % | ||||||||||||
Valley View Mall |
97.1 | % | 96.0 | % | 96.8 | % | 95.6 | % | 0.3 | % | 0.4 | % | ||||||||||||
Viewmont Mall |
99.2 | % | 97.9 | % | 99.4 | % | 98.5 | % | -0.2 | % | -0.6 | % | ||||||||||||
Voorhees Town Center |
67.2 | % | 66.7 | % | 64.8 | % | 64.3 | % | 2.4 | % | 2.4 | % | ||||||||||||
Washington Crown Center |
91.7 | % | 84.8 | % | 91.8 | % | 84.8 | % | -0.1 | % | 0.0 | % | ||||||||||||
Willow Grove Park(3) |
96.6 | % | 94.4 | % | 70.1 | % | 92.6 | % | 26.5 | % | 1.8 | % | ||||||||||||
Wiregrass Commons Mall |
91.5 | % | 87.7 | % | 90.3 | % | 86.0 | % | 1.2 | % | 1.7 | % | ||||||||||||
Woodland Mall |
95.3 | % | 95.3 | % | 97.0 | % | 97.0 | % | -1.7 | % | -1.7 | % | ||||||||||||
Wyoming Valley Mall |
97.1 | % | 91.6 | % | 97.5 | % | 92.9 | % | -0.4 | % | -1.3 | % | ||||||||||||
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Malls weighted average(4) |
92.9 | % | 89.7 | % | 92.1 | % | 89.4 | % | 0.8 | % | 0.3 | % | ||||||||||||
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Consolidated Properties |
92.8 | % | 89.3 | % | 91.9 | % | 89.0 | % | 0.9 | % | 0.3 | % | ||||||||||||
Unconsolidated Properties |
96.5 | % | 95.5 | % | 96.4 | % | 95.4 | % | 0.1 | % | 0.1 | % | ||||||||||||
Same Properties |
92.9 | % | 89.7 | % | 92.1 | % | 89.4 | % | 0.8 | % | 0.3 | % |
(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 December 31, 2011 and 2010. |
(3) | The total occupancy percentage for Willow Grove Park as of December 31, 2010 includes the former Strawbridges store that is currently under redevelopment as of December 31, 2011. This vacant department store represents 26.6% of the owned mall GLA as of December 31, 2010. In December 2011, we decommissioned 206,834 sf, of which 113,692 sf is related the new jcpenney store, 41,152 sf is related to the new Nordstrom Rack store and 24,695 sf is related to inline space. The remaining 28,451 sf is pending redevelopment. |
(4) | Reflects the decommissioning of space related to redevelopment activity. A space is decommissioned once tenant relocations have been completed and demolition/reconfiguration of the former space has commenced. Space is recommissioned once the first tenant in the new/reconfigured wing or area is open and the remaining space is in leaseable condition. |
Page 14
Pennsylvania Real Estate Investment Trust
Strip and Power Center Rent Per Square Foot and Occupancy(1) Percentages
December 31, 2011 | December 31, 2010 | Change | ||||||||||||||||||||||||||||||||||
Avg | Occupancy | Avg | Occupancy | Avg | Occupancy | |||||||||||||||||||||||||||||||
Base Rent | Total | Non-Anchor | Base Rent | Total | Non-Anchor | Base Rent | Total | Non-Anchor | ||||||||||||||||||||||||||||
Christiana Center |
$ | 20.16 | 96.0 | % | 89.1 | % | $ | 20.16 | 96.0 | % | 89.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||
The Commons at Magnolia |
15.69 | 80.4 | % | 75.6 | % | 14.12 | 87.3 | % | 84.2 | % | 11.1 | % | -6.9 | % | -8.6 | % | ||||||||||||||||||||
Metroplex Shopping Center |
20.03 | 100.0 | % | 100.0 | % | 19.57 | 100.0 | % | 100.0 | % | 2.4 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||
The Court at Oxford Valley |
15.09 | 91.7 | % | 90.5 | % | 15.60 | 100.0 | % | 100.0 | % | -3.3 | % | -8.3 | % | -9.5 | % | ||||||||||||||||||||
Paxton Towne Centre |
14.49 | 100.0 | % | 100.0 | % | 15.88 | 98.2 | % | 97.3 | % | -8.8 | % | 1.8 | % | 2.7 | % | ||||||||||||||||||||
Red Rose Commons |
13.14 | 100.0 | % | 100.0 | % | 14.24 | 84.2 | % | 84.2 | % | -7.7 | % | 15.8 | % | 15.8 | % | ||||||||||||||||||||
Springfield Park |
21.71 | 98.2 | % | 94.9 | % | 21.10 | 98.2 | % | 94.9 | % | 2.9 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||
Whitehall Mall |
13.50 | 83.1 | % | 81.8 | % | 12.51 | 91.6 | % | 82.3 | % | 7.9 | % | -8.5 | % | -0.5 | % | ||||||||||||||||||||
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Weighted Average |
$ | 16.19 | 93.8 | % | 93.8 | % | $ | 16.36 | 95.5 | % | 93.3 | % | -1.0 | % | -1.7 | % | 0.5 | % | ||||||||||||||||||
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Consolidated Properties |
$ | 15.89 | 96.2 | % | 93.3 | % | $ | 16.54 | 96.1 | % | 93.2 | % | -3.9 | % | 0.1 | % | 0.1 | % | ||||||||||||||||||
Unconsolidated Properties |
$ | 16.29 | 92.8 | % | 94.0 | % | $ | 16.29 | 95.2 | % | 93.4 | % | 0.0 | % | -2.4 | % | 0.6 | % | ||||||||||||||||||
Same Properties |
$ | 16.19 | 93.8 | % | 93.8 | % | $ | 16.36 | 95.5 | % | 93.3 | % | -1.0 | % | -1.7 | % | 0.5 | % |
(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 |
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Gap, Inc. |
45 | 560,997 | 5 | 51,516 | 50 | 612,513 | $ | 12,076 | $ | 11,108 | 3.55 | % | ||||||||||||||||||||||||
J.C. Penney Corporation, Inc. |
24 | 2,370,409 | 6 | 824,327 | 30 | 3,194,736 | 7,679 | 7,679 | 2.46 | % | ||||||||||||||||||||||||||
Foot Locker, Inc. |
58 | 272,835 | 11 | 70,927 | 69 | 343,762 | 7,791 | 7,339 | 2.35 | % | ||||||||||||||||||||||||||
Limited Brands, Inc. |
58 | 279,395 | 14 | 44,323 | 72 | 323,718 | 7,581 | 7,135 | 2.28 | % | ||||||||||||||||||||||||||
American Eagle Outfitters, Inc. |
40 | 218,381 | 2 | 8,840 | 42 | 227,221 | 6,886 | 6,573 | 2.10 | % | ||||||||||||||||||||||||||
Zale Corporation |
74 | 55,498 | 0 | | 74 | 55,498 | 5,725 | 5,420 | 1.73 | % | ||||||||||||||||||||||||||
Sears Holding Corporation |
24 | 2,796,396 | 5 | 880,777 | 29 | 3,677,173 | 5,445 | 5,302 | 1.70 | % | ||||||||||||||||||||||||||
Signet Jewelers Limited |
39 | 60,145 | 0 | | 39 | 60,145 | 4,553 | 4,398 | 1.41 | % | ||||||||||||||||||||||||||
Dicks Sporting Goods, Inc. |
8 | 371,224 | 2 | 95,935 | 10 | 467,159 | 4,775 | 4,054 | 1.30 | % | ||||||||||||||||||||||||||
Luxottica Group S.p.A. |
46 | 113,705 | 4 | 9,212 | 50 | 122,917 | 4,189 | 3,890 | 1.24 | % | ||||||||||||||||||||||||||
Abercrombie & Fitch Co. |
19 | 128,443 | 0 | | 19 | 128,443 | 3,872 | 3,490 | 1.12 | % | ||||||||||||||||||||||||||
Genesco, Inc. |
59 | 77,834 | 3 | 3,044 | 62 | 80,878 | 3,484 | 3,343 | 1.07 | % | ||||||||||||||||||||||||||
Aeropostale, Inc. |
33 | 115,299 | 3 | 10,619 | 36 | 125,918 | 3,353 | 3,124 | 1.00 | % | ||||||||||||||||||||||||||
Commonwealth of Pennsylvania |
2 | 229,244 | 0 | | 2 | 229,244 | 3,092 | 3,092 | 0.99 | % | ||||||||||||||||||||||||||
Barnes & Noble, Inc. |
9 | 271,086 | 0 | | 9 | 271,086 | 4,013 | 2,977 | 0.95 | % | ||||||||||||||||||||||||||
Hallmark Cards, Inc. |
34 | 137,817 | 5 | 21,786 | 39 | 159,603 | 3,144 | 2,972 | 0.95 | % | ||||||||||||||||||||||||||
Best Buy Co., Inc. |
19 | 200,502 | 0 | | 19 | 200,502 | 3,853 | 2,857 | 0.91 | % | ||||||||||||||||||||||||||
Shoe Show, Inc. |
26 | 167,349 | 5 | 25,549 | 31 | 192,898 | 2,932 | 2,836 | 0.91 | % | ||||||||||||||||||||||||||
Burlington Coat Factory |
6 | 537,986 | 0 | | 6 | 537,986 | 2,826 | 2,826 | 0.90 | % | ||||||||||||||||||||||||||
Regis Corporation |
75 | 91,309 | 3 | 4,651 | 78 | 95,960 | 2,831 | 2,740 | 0.88 | % | ||||||||||||||||||||||||||
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Total Top 20 Tenants |
698 | 8,426,559 | 68 | 2,051,506 | 766 | 11,107,360 | $ | 100,100 | $ | 93,155 | 29.80 | % | ||||||||||||||||||||||||
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Total Leases |
3,098 | $ | 312,604 | 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 rent from partnership properties based on PREITs ownership percentage in the respective partnerships. |
Page 16
Pennsylvania Real Estate Investment Trust
Lease Expirations as of December 31, 2011
(dollars in thousands except psf amounts)
Non-Anchors(1)
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Gross Leasable Area | Annualized Minimum Rent | |||||||||||||||||||||||||||
Lease Expiration Year |
Number of Leases Expiring |
Expiring GLA(2) | Percent of Total | Minimum Rent in Expiring Year(2) |
PREITs Share
of Minimum Rent in Expiring Year(3) |
Percent of PREITs Total |
Average Expiring Minimum Rent psf |
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2011 and Prior |
310 | 704,166 | 5.8 | % | $ | 19,547 | $ | 18,892 | 6.9 | % | $ | 27.76 | ||||||||||||||||
2012 |
504 | 1,606,652 | 13.2 | % | 38,644 | 36,148 | 13.2 | % | 24.05 | |||||||||||||||||||
2013 |
426 | 1,458,070 | 11.9 | % | 31,173 | 29,253 | 10.7 | % | 21.38 | |||||||||||||||||||
2014 |
331 | 1,157,334 | 9.5 | % | 25,613 | 23,534 | 8.6 | % | 22.13 | |||||||||||||||||||
2015 |
259 | 1,283,707 | 10.5 | % | 29,054 | 26,068 | 9.5 | % | 22.63 | |||||||||||||||||||
2016 |
315 | 1,405,382 | 11.5 | % | 37,726 | 33,796 | 12.4 | % | 26.84 | |||||||||||||||||||
2017 |
208 | 913,760 | 7.5 | % | 24,566 | 21,817 | 8.0 | % | 26.88 | |||||||||||||||||||
2018 |
188 | 976,633 | 8.0 | % | 25,803 | 23,515 | 8.6 | % | 26.42 | |||||||||||||||||||
2019 |
138 | 611,405 | 5.0 | % | 18,410 | 17,503 | 6.4 | % | 30.11 | |||||||||||||||||||
2020 |
133 | 934,299 | 7.7 | % | 20,232 | 19,038 | 7.0 | % | 21.65 | |||||||||||||||||||
2021 |
123 | 591,391 | 4.8 | % | 14,440 | 12,904 | 4.7 | % | 24.42 | |||||||||||||||||||
Thereafter |
55 | 568,375 | 4.6 | % | 11,341 | 11,053 | 4.0 | % | 19.95 | |||||||||||||||||||
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Total/Average |
2,990 | 12,211,174 | 100.0 | % | $ | 296,549 | $ | 273,521 | 100.0 | % | $ | 24.29 | ||||||||||||||||
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Anchors(1)
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Gross Leasable Area | Annualized Minimum Rent | |||||||||||||||||||||||||||
Lease Expiration Year |
Number
of Leases Expiring(4) |
Expiring GLA | Percent of Total | Minimum Rent in Expiring Year |
PREITs Share of Minimum Rent in Expiring Year(3) |
Percent of PREITs Total |
Average Expiring Minimum Rent psf |
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2012 |
1 | 212,000 | 1.9 | % | $ | 74 | $ | 37 | 0.1 | % | $ | 0.35 | ||||||||||||||||
2013 |
14 | 1,135,570 | 10.1 | % | 4,593 | 4,593 | 11.8 | % | 4.04 | |||||||||||||||||||
2014 |
15 | 1,491,412 | 13.3 | % | 4,112 | 3,650 | 9.3 | % | 2.76 | |||||||||||||||||||
2015 |
18 | 1,715,835 | 15.3 | % | 5,115 | 5,115 | 13.1 | % | 2.98 | |||||||||||||||||||
2016 |
20 | 1,895,436 | 16.9 | % | 4,777 | 4,777 | 12.2 | % | 2.52 | |||||||||||||||||||
2017 |
9 | 1,021,341 | 9.1 | % | 3,825 | 3,410 | 8.7 | % | 3.75 | |||||||||||||||||||
2018 |
6 | 777,965 | 6.9 | % | 4,084 | 4,084 | 10.4 | % | 5.25 | |||||||||||||||||||
2019 |
7 | 770,343 | 6.9 | % | 2,014 | 2,014 | 5.2 | % | 2.61 | |||||||||||||||||||
2020 |
4 | 346,039 | 3.1 | % | 1,415 | 1,415 | 3.6 | % | 4.09 | |||||||||||||||||||
2021 |
4 | 426,239 | 3.8 | % | 3,059 | 1,775 | 4.5 | % | 7.18 | |||||||||||||||||||
Thereafter |
10 | 1,410,486 | 12.7 | % | 8,213 | 8,213 | 21.1 | % | 5.82 | |||||||||||||||||||
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Total/Average |
108 | 11,202,666 | 100.0 | % | $ | 41,281 | $ | 39,083 | 100.0 | % | $ | 3.68 | ||||||||||||||||
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(1) | Only includes owned space. |
(2) | Does not include tenants occupying space under agreements with initial terms of less than one year. |
(3) | Includes PREITs proportionate share of tenant rent from partnership properties based on PREITs ownership percentage in the respective partnerships. |
(4) | Accounts for all contiguous anchor space as one lease. |
Page 17
Pennsylvania Real Estate Investment Trust
Retail Gross Leasable Area Occupancy Summary as of December 31, 2011
Owned GLA | ||||||||||||||||||||||||||||
Occupied | Vacant | |||||||||||||||||||||||||||
Anchor | Non-Anchor | Anchor | Non-Anchor | |||||||||||||||||||||||||
Large Format(1) | Small Shop(2) | GLA Not Owned | Total GLA | |||||||||||||||||||||||||
Malls |
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Beaver Valley Mall |
511,267 | 148,740 | 225,382 | | 72,007 | 204,770 | 1,162,166 | |||||||||||||||||||||
Capital City Mall |
204,301 | 63,586 | 212,097 | | 8,785 | 120,000 | 608,769 | |||||||||||||||||||||
Chambersburg Mall |
241,690 | 19,651 | 137,601 | | 55,481 | | 454,423 | |||||||||||||||||||||
Cherry Hill Mall(3) |
138,000 | 204,015 | 434,962 | | 43,119 | 478,885 | 1,298,981 | |||||||||||||||||||||
Crossroads Mall |
254,211 | 74,108 | 128,334 | | 19,625 | | 476,278 | |||||||||||||||||||||
Cumberland Mall |
264,348 | 212,538 | 149,282 | | 43,049 | 273,230 | 942,447 | |||||||||||||||||||||
Dartmouth Mall |
208,460 | 142,274 | 168,819 | | 11,245 | 140,000 | 670,798 | |||||||||||||||||||||
Exton Square Mall |
440,301 | 26,617 | 286,328 | | 56,132 | 277,468 | 1,086,846 | |||||||||||||||||||||
Francis Scott Key Mall |
222,176 | 140,616 | 198,036 | | 11,800 | 139,333 | 711,961 | |||||||||||||||||||||
Gadsden Mall |
300,960 | 65,746 | 114,541 | | 18,841 | | 500,088 | |||||||||||||||||||||
The Gallery at Market East |
350,115 | 73,975 | 249,962 | 328,390 | 81,990 | | 1,084,432 | |||||||||||||||||||||
Jacksonville Mall |
242,115 | 98,693 | 147,919 | | | | 488,727 | |||||||||||||||||||||
Lehigh Valley Mall |
212,000 | 171,800 | 375,118 | | 26,397 | 371,986 | 1,157,301 | |||||||||||||||||||||
Logan Valley Mall |
455,060 | 43,943 | 262,863 | | 19,337 | | 781,203 | |||||||||||||||||||||
Lycoming Mall |
333,413 | 182,268 | 180,890 | | 18,035 | 120,000 | 834,606 | |||||||||||||||||||||
Magnolia Mall |
343,118 | 86,608 | 177,751 | | 5,693 | | 613,170 | |||||||||||||||||||||
Moorestown Mall |
408,356 | 98,682 | 185,654 | | 45,558 | 321,200 | 1,059,450 | |||||||||||||||||||||
New River Valley Mall |
175,306 | 134,996 | 123,821 | | 7,153 | | 441,276 | |||||||||||||||||||||
Nittany Mall |
221,462 | 12,500 | 184,012 | | 19,070 | 95,000 | 532,044 | |||||||||||||||||||||
North Hanover Mall |
206,792 | 21,047 | 114,765 | | 13,159 | | 355,763 | |||||||||||||||||||||
Orlando Fashion Square |
491,999 | 136,808 | 222,176 | | 81,292 | 155,576 | 1,087,851 | |||||||||||||||||||||
Palmer Park Mall |
314,235 | | 128,144 | | 15,552 | | 457,931 | |||||||||||||||||||||
Patrick Henry Mall |
279,619 | 16,741 | 273,721 | | 6,111 | 140,000 | 716,192 | |||||||||||||||||||||
Phillipsburg Mall |
326,552 | 42,021 | 146,175 | | 62,390 | | 577,138 | |||||||||||||||||||||
Plymouth Meeting Mall(4) |
253,584 | 163,161 | 217,163 | | 103,642 | 214,635 | 952,185 | |||||||||||||||||||||
The Mall at Prince Georges |
479,619 | 119,073 | 292,137 | | 27,746 | | 918,575 | |||||||||||||||||||||
South Mall |
139,691 | 120,071 | 96,744 | | 48,693 | | 405,199 | |||||||||||||||||||||
Springfield Mall |
| | 212,973 | | 9,332 | 387,899 | 610,204 | |||||||||||||||||||||
Uniontown Mall |
391,096 | 49,888 | 165,083 | 30,282 | 62,643 | | 698,992 | |||||||||||||||||||||
Valley Mall |
280,549 | 125,334 | 252,569 | | 15,318 | 243,400 | 917,170 | |||||||||||||||||||||
Valley View Mall |
96,357 | 74,148 | 163,153 | | 9,843 | 254,596 | 598,097 | |||||||||||||||||||||
Viewmont Mall |
386,262 | 82,893 | 153,043 | | 4,996 | 120,000 | 747,194 | |||||||||||||||||||||
Voorhees Town Center(5) |
4,404 | 67,478 | 136,742 | | 101,785 | 420,838 | 731,247 | |||||||||||||||||||||
Washington Crown Center |
245,401 | 89,086 | 157,301 | | 44,283 | 140,095 | 676,166 | |||||||||||||||||||||
Willow Grove Park |
225,000 | 54,425 | 283,894 | | 19,883 | 413,121 | 996,323 | |||||||||||||||||||||
Wiregrass Commons |
94,686 | 10,345 | 174,917 | | 25,865 | 332,152 | 637,965 | |||||||||||||||||||||
Woodland Mall |
| 120,959 | 293,181 | | 20,500 | 725,187 | 1,159,827 | |||||||||||||||||||||
Wyoming Valley Mall |
592,110 | 90,851 | 201,648 | | 26,691 | | 911,300 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Malls (38 properties) |
10,334,615 | 3,385,685 | 7,628,901 | 358,672 | 1,263,041 | 6,089,371 | 29,060,285 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Strip and Power Centers |
||||||||||||||||||||||||||||
Christiana Center |
190,814 | 68,132 | 31,288 | | 12,200 | | 302,434 | |||||||||||||||||||||
The Commons at Magnolia |
20,631 | 28,618 | 34,667 | | 20,416 | 126,200 | 230,532 | |||||||||||||||||||||
Metroplex Shopping Center |
67,185 | 353,984 | 56,292 | | | 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 | | | 273,058 | 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 | 43,891 | 56,828 | 39,867 | | 570,492 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Strip and Power Centers (8 properties) |
868,051 | 1,399,351 | 311,321 | 56,828 | 112,605 | 1,292,869 | 4,041,025 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
CONSOLIDATED PROPERTIES |
10,485,687 | 3,532,060 | 7,178,145 | 358,672 | 1,259,928 | 5,728,744 | 28,543,236 | |||||||||||||||||||||
UNCONSOLIDATED PROPERTIES |
716,979 | 1,252,976 | 762,077 | 56,828 | 115,718 | 1,653,496 | 4,558,074 | |||||||||||||||||||||
TOTAL PROPERTIES |
11,202,666 | 4,785,036 | 7,940,222 | 415,500 | 1,375,646 | 7,382,240 | 33,101,310 |
(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 6,554 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 December 31, 2011
Properties |
Ownership |
Date Acquired |
Year Built/Last |
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 3/31/17 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 Dicks Sporting Goods jcpenney Sears |
11/5/14 1/31/22 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 Burlington Coat Factory Dicks Sporting Goods jcpenney Macys Sears |
1/31/17 7/27/16 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 |
4/19/20 1/31/17 3/31/13 4/30/22 8/2/13 |
Page 19
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 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 |
1/31/17 4/30/17 1/31/17 8/1/16 |
Page 20
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
Condensed Balance Sheet
Proportionate Consolidation Method(1)
(in thousands, except per share amounts)
December 31, 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 |
$ | 3,470,167 | $ | 211,790 | $ | 3,681,957 | $ | 3,448,900 | $ | 210,505 | $ | 3,659,405 | ||||||||||||
Construction in progress |
91,538 | 864 | 92,402 | 121,547 | 753 | 122,300 | ||||||||||||||||||
Land held for development |
15,292 | | 15,292 | 17,021 | | 17,021 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total investments in real estate |
3,576,997 | 212,654 | 3,789,651 | 3,587,468 | 211,258 | 3,798,726 | ||||||||||||||||||
Accumulated depreciation |
(844,010 | ) | (73,594 | ) | (917,604 | ) | (729,086 | ) | (66,699 | ) | (795,785 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investments in real estate |
2,732,987 | 139,060 | 2,872,047 | 2,858,382 | 144,559 | 3,002,941 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Investments in partnerships, at equity |
16,009 | (16,009 | ) | | 30,959 | (30,959 | ) | | ||||||||||||||||
Other assets: |
||||||||||||||||||||||||
Cash and cash equivalents |
21,798 | 5,683 | 27,481 | 42,327 | 4,780 | 47,107 | ||||||||||||||||||
Rent and other receivables(2) |
39,832 | 2,065 | 41,897 | 40,732 | 6,390 | 47,122 | ||||||||||||||||||
Intangible assets, net |
9,921 | 178 | 10,099 | 15,787 | 288 | 16,075 | ||||||||||||||||||
Deferred costs and other assets, net |
89,707 | 15,704 | 105,411 | 91,930 | 8,304 | 100,234 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total other assets |
177,267 | 7,621 | 184,888 | 221,735 | (11,197 | ) | 210,538 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total assets |
$ | 2,910,254 | $ | 146,681 | $ | 3,056,935 | $ | 3,080,117 | $ | 133,362 | $ | 3,213,479 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
LIABILITIES AND EQUITY |
||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||
Mortgage loans (including debt premium of $282 and $1,569 as of December 31, 2011 and December 31, 2010, respectively) |
$ | 1,691,381 | $ | 204,546 | $ | 1,895,927 | $ | 1,744,248 | $ | 175,693 | $ | 1,919,941 | ||||||||||||
Exchangeable notes (net of discount of $849 and $2,809 as of December 31, 2011 and December 31, 2010, respectively) |
136,051 | | 136,051 | 134,091 | | 134,091 | ||||||||||||||||||
Revolving Facility |
95,000 | | 95,000 | | | | ||||||||||||||||||
Term Loans |
240,000 | | 240,000 | 347,200 | | 347,200 | ||||||||||||||||||
Tenants deposits and deferred rent |
13,278 | 3,492 | 16,770 | 16,583 | 3,899 | 20,482 | ||||||||||||||||||
Distributions in excess of partnership investments |
64,938 | (64,938 | ) | | 44,614 | (44,614 | ) | | ||||||||||||||||
Fair value of derivative instruments |
21,112 | | 21,112 | 27,233 | | 27,233 | ||||||||||||||||||
Other liabilities |
60,456 | 3,581 | 64,037 | 61,618 | (1,616 | ) | 60,002 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities |
2,322,216 | 146,681 | 2,468,897 | 2,375,587 | 133,362 | 2,508,949 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Equity: |
||||||||||||||||||||||||
Total equity |
588,038 | | 588,038 | 704,530 | | 704,530 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities and equity |
$ | 2,910,254 | $ | 146,681 | $ | 3,056,935 | $ | 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 $27.9 million ($25.5 million wholly owned, $2.4 million partnership) as of December 31, 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
Condensed Balance Sheet
Property Type(1)
(in thousands, except per share amounts)
December 31, 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 |
$ | 3,454,686 | $ | 221,021 | $ | 21,542 | $ | 3,697,249 | $ | 3,433,844 | $ | 219,321 | $ | 23,261 | $ | 3,676,426 | ||||||||||||||||
Construction in progress |
36,088 | | 56,314 | 92,402 | 67,123 | | 55,177 | 122,300 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total investments in real estate |
3,490,774 | 221,021 | 77,856 | 3,789,651 | 3,500,967 | 219,321 | 78,438 | 3,798,726 | ||||||||||||||||||||||||
Accumulated depreciation |
(838,810 | ) | (77,292 | ) | (1,502 | ) | (917,604 | ) | (724,708 | ) | (69,785 | ) | (1,292 | ) | (795,785 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investments in real estate |
2,651,964 | 143,729 | 76,354 | 2,872,047 | 2,776,259 | 149,536 | 77,146 | 3,002,941 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Other assets: |
||||||||||||||||||||||||||||||||
Cash and cash equivalents |
16,947 | 2,113 | 8,421 | 27,481 | 21,119 | 1,931 | 24,057 | 47,107 | ||||||||||||||||||||||||
Rent and other receivables(2) |
38,087 | 2,451 | 1,359 | 41,897 | 37,768 | 7,008 | 2,346 | 47,122 | ||||||||||||||||||||||||
Intangible assets, net |
2,852 | | 7,247 | 10,099 | 8,725 | | 7,350 | 16,075 | ||||||||||||||||||||||||
Deferred costs and other assets, net |
67,851 | 15,309 | 22,251 | 105,411 | 72,165 | 7,960 | 20,109 | 100,234 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total other assets |
125,737 | 19,873 | 39,278 | 184,888 | 139,777 | 16,899 | 53,862 | 210,538 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total assets |
$ | 2,777,701 | $ | 163,602 | $ | 115,632 | $ | 3,056,935 | $ | 2,916,036 | $ | 166,435 | $ | 131,008 | $ | 3,213,479 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
LIABILITIES AND EQUITY |
||||||||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||
Mortgage loans (including debt premium of $282 and $1,569 as of December 31, 2011 and December 31, 2010, respectively) |
$ | 1,694,476 | $ | 201,451 | $ | | $ | 1,895,927 | $ | 1,743,470 | $ | 171,553 | $ | 4,918 | $ | 1,919,941 | ||||||||||||||||
Exchangeable notes (net of discount of $849 and $2,809 as of December 31, 2011 and December 31, 2010, respectively) |
| | 136,051 | 136,051 | | | 134,091 | 134,091 | ||||||||||||||||||||||||
Revolving Facility |
| | 95,000 | 95,000 | | | | | ||||||||||||||||||||||||
Term Loans |
| | 240,000 | 240,000 | | | 347,200 | 347,200 | ||||||||||||||||||||||||
Tenants deposits and deferred rent |
14,686 | 1,933 | 151 | 16,770 | 18,205 | 2,128 | 149 | 20,482 | ||||||||||||||||||||||||
Fair value of derivative instruments |
| | 21,112 | 21,112 | | | 27,233 | 27,233 | ||||||||||||||||||||||||
Other liabilities |
33,098 | 1,687 | 29,252 | 64,037 | 32,593 | (2,277 | ) | 29,686 | 60,002 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total liabilities |
1,742,260 | 205,071 | 521,566 | 2,468,897 | 1,794,268 | 171,404 | 543,277 | 2,508,949 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Equity: |
||||||||||||||||||||||||||||||||
Total equity |
1,035,441 | (41,469 | ) | (405,934 | ) | 588,038 | 1,121,768 | (4,969 | ) | (412,269 | ) | 704,530 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total liabilities and equity |
$ | 2,777,701 | $ | 163,602 | $ | 115,632 | $ | 3,056,935 | $ | 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 $27.9 million ($25.5 million wholly owned, $2.4 million partnership) as of December 31, 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
Investment in Real Estate(1)
(in thousands)
December 31, 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 |
$ | 70,444 | $ | | $ | 21,550 | $ | 48,894 | $ | 69,663 | $ | | $ | 18,536 | $ | 51,127 | ||||||||||||||||
Capital City Mall |
96,393 | | 25,081 | 71,312 | 95,920 | | 21,547 | 74,373 | ||||||||||||||||||||||||
Chambersburg Mall |
38,445 | | 8,870 | 29,575 | 38,529 | | 7,803 | 30,726 | ||||||||||||||||||||||||
Cherry Hill Mall |
452,603 | 419 | 98,194 | 354,828 | 448,513 | 34 | 76,173 | 372,374 | ||||||||||||||||||||||||
Crossroads Mall |
44,634 | 873 | 10,206 | 35,301 | 36,750 | 1,057 | 8,903 | 28,904 | ||||||||||||||||||||||||
Cumberland Mall |
63,595 | 671 | 10,982 | 53,284 | 63,340 | 153 | 9,051 | 54,442 | ||||||||||||||||||||||||
Dartmouth Mall |
63,105 | | 28,511 | 34,594 | 62,543 | | 26,604 | 35,939 | ||||||||||||||||||||||||
Exton Square Mall |
148,948 | 72 | 29,903 | 119,117 | 147,556 | 64 | 26,367 | 121,253 | ||||||||||||||||||||||||
Francis Scott Key Mall |
78,340 | | 19,395 | 58,945 | 76,482 | 813 | 16,587 | 60,708 | ||||||||||||||||||||||||
Gadsden Mall |
62,336 | | 11,820 | 50,516 | 61,174 | | 9,735 | 51,439 | ||||||||||||||||||||||||
The Gallery at Market East |
170,032 | 4,479 | 27,437 | 147,074 | 169,696 | 2,014 | 19,913 | 151,797 | ||||||||||||||||||||||||
Jacksonville Mall |
80,042 | | 18,701 | 61,341 | 79,247 | | 16,096 | 63,151 | ||||||||||||||||||||||||
Logan Valley Mall |
96,326 | | 24,777 | 71,549 | 96,000 | | 22,521 | 73,479 | ||||||||||||||||||||||||
Lycoming Mall |
77,566 | | 18,451 | 59,115 | 76,814 | | 15,817 | 60,997 | ||||||||||||||||||||||||
Magnolia Mall |
88,770 | 33 | 27,121 | 61,682 | 87,434 | 27 | 23,814 | 63,647 | ||||||||||||||||||||||||
Moorestown Mall |
93,291 | 104 | 28,194 | 65,201 | 92,560 | 87 | 25,201 | 67,446 | ||||||||||||||||||||||||
New River Valley Mall |
58,142 | | 18,501 | 39,641 | 57,892 | | 15,238 | 42,654 | ||||||||||||||||||||||||
Nittany Mall |
44,327 | | 10,372 | 33,955 | 43,458 | | 9,073 | 34,385 | ||||||||||||||||||||||||
North Hanover Mall(2) |
27,219 | 101 | 5,092 | 22,228 | 38,219 | 17,100 | 8,004 | 47,315 | ||||||||||||||||||||||||
Orlando Fashion Square |
43,226 | | 7,550 | 35,676 | 40,426 | | 4,448 | 35,978 | ||||||||||||||||||||||||
Palmer Park Mall |
34,529 | | 12,912 | 21,617 | 34,465 | | 12,103 | 22,362 | ||||||||||||||||||||||||
Patrick Henry Mall |
142,469 | | 37,953 | 104,516 | 141,312 | | 32,338 | 108,974 | ||||||||||||||||||||||||
Phillipsburg Mall(3) |
19,714 | | 4,760 | 14,954 | 54,088 | 606 | 10,930 | 43,764 | ||||||||||||||||||||||||
Plymouth Meeting Mall |
161,328 | 7 | 34,397 | 126,938 | 159,802 | 426 | 28,256 | 131,972 | ||||||||||||||||||||||||
The Mall at Prince Georges |
101,522 | | 36,338 | 65,184 | 100,654 | | 32,782 | 67,872 | ||||||||||||||||||||||||
South Mall |
34,196 | | 6,924 | 27,272 | 33,728 | | 6,107 | 27,621 | ||||||||||||||||||||||||
Uniontown Mall |
40,827 | | 11,156 | 29,671 | 39,955 | | 9,750 | 30,205 | ||||||||||||||||||||||||
Valley Mall |
92,966 | | 23,494 | 69,472 | 92,081 | | 21,252 | 70,829 | ||||||||||||||||||||||||
Valley View Mall |
67,930 | | 14,699 | 53,231 | 67,602 | | 12,977 | 54,625 | ||||||||||||||||||||||||
Viewmont Mall |
91,330 | | 20,588 | 70,742 | 90,359 | | 17,600 | 72,759 | ||||||||||||||||||||||||
Voorhees Town Center |
88,473 | 808 | 17,680 | 71,601 | 66,001 | 20,774 | 13,950 | 72,825 | ||||||||||||||||||||||||
Washington Crown Center |
40,432 | | 13,594 | 26,838 | 40,249 | | 12,826 | 27,423 | ||||||||||||||||||||||||
Willow Grove Park |
195,841 | 28,385 | 51,600 | 172,626 | 189,032 | 23,943 | 45,471 | 167,504 | ||||||||||||||||||||||||
Wiregrass Commons Mall |
53,629 | | 10,964 | 42,665 | 52,072 | | 9,159 | 42,913 | ||||||||||||||||||||||||
Woodland Mall |
185,681 | | 34,139 | 151,542 | 185,530 | | 28,070 | 157,460 | ||||||||||||||||||||||||
Wyoming Valley Mall |
108,721 | | 26,112 | 82,609 | 107,913 | | 22,251 | 85,662 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Consolidated Malls |
3,357,372 | 35,952 | 808,018 | 2,585,306 | 3,337,059 | 67,098 | 697,253 | 2,706,904 | ||||||||||||||||||||||||
Unconsolidated Malls |
||||||||||||||||||||||||||||||||
Lehigh Valley Mall |
41,648 | 130 | 18,960 | 22,818 | 41,516 | 21 | 17,338 | 24,199 | ||||||||||||||||||||||||
Springfield Mall |
55,666 | 6 | 11,832 | 43,840 | 55,269 | 4 | 10,117 | 45,156 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Unconsolidated Malls |
97,314 | 136 | 30,792 | 66,658 | 96,785 | 25 | 27,455 | 69,355 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TOTAL MALLS |
$ | 3,454,686 | $ | 36,088 | $ | 838,810 | $ | 2,651,964 | $ | 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) | Net of impairment of $24,134 recorded in the 3rd Quarter of 2011. |
(3) | Net of impairment of $27,977 recorded in the 3rd Quarter of 2011. |
Page 24
Pennsylvania Real Estate Investment Trust
Investment in Real Estate(1) (continued)
(in thousands)
December 31, 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 |
$ | 42,681 | $ | | $ | 13,552 | $ | 29,129 | $ | 42,020 | $ | | $ | 12,288 | $ | 29,732 | ||||||||||||||||
The Commons at Magnolia |
12,677 | | 3,835 | 8,842 | 12,674 | | 3,347 | 9,327 | ||||||||||||||||||||||||
Paxton Towne Centre |
57,437 | | 18,605 | 38,832 | 57,147 | | 16,198 | 40,949 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Consolidated Strip and Power Centers |
112,795 | | 35,992 | 76,803 | 111,841 | | 31,833 | 80,008 | ||||||||||||||||||||||||
Unconsolidated Strip and Power Centers |
||||||||||||||||||||||||||||||||
Metroplex Shopping Center |
42,791 | | 17,289 | 25,502 | 42,180 | | 15,315 | 26,865 | ||||||||||||||||||||||||
The Court at Oxford Valley |
27,908 | | 9,217 | 18,691 | 27,883 | | 8,600 | 19,283 | ||||||||||||||||||||||||
Red Rose Commons |
13,617 | | 4,294 | 9,323 | 13,178 | | 3,936 | 9,242 | ||||||||||||||||||||||||
Whitehall Mall |
16,716 | | 8,814 | 7,902 | 16,954 | | 8,570 | 8,384 | ||||||||||||||||||||||||
Springfield Park |
7,194 | | 1,686 | 5,508 | 7,285 | | 1,531 | 5,754 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Unconsolidated Strip and Power Centers |
108,226 | | 41,300 | 66,926 | 107,480 | | 37,952 | 69,528 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TOTAL STRIP AND POWER CENTERS |
$ | 221,021 | $ | | $ | 77,292 | $ | 143,729 | $ | 219,321 | $ | | $ | 69,785 | $ | 149,536 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Consolidated Properties Under Development |
||||||||||||||||||||||||||||||||
Springhills |
$ | | $ | 22,004 | $ | | $ | 22,004 | $ | | $ | 21,984 | $ | | $ | 21,984 | ||||||||||||||||
White Clay Point |
| 33,582 | | 33,582 | | 32,465 | | 32,465 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Consolidated Properties Under Development |
| 55,586 | | 55,586 | | 54,449 | | 54,449 | ||||||||||||||||||||||||
Unconsolidated Properties Under Development |
||||||||||||||||||||||||||||||||
Pavilion at Market East |
6,250 | 728 | 1,502 | 5,476 | 6,240 | 728 | 1,292 | 5,676 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Unconsolidated Properties Under Development |
6,250 | 728 | 1,502 | 5,476 | 6,240 | 728 | 1,292 | 5,676 | ||||||||||||||||||||||||
Other Properties |
||||||||||||||||||||||||||||||||
Land held for development - consolidated |
15,292 | | | 15,292 | 17,021 | | | 17,021 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Other Properties |
15,292 | | | 15,292 | 17,021 | | | 17,021 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TOTAL DEVELOPMENT AND OTHER |
$ | 21,542 | $ | 56,314 | $ | 1,502 | $ | 76,354 | $ | 23,261 | $ | 55,177 | $ | 1,292 | $ | 77,146 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TOTAL INVESTMENT IN REAL ESTATE |
$ | 3,697,249 | $ | 92,402 | $ | 917,604 | $ | 2,872,047 | $ | 3,676,426 | $ | 122,300 | $ | 795,785 | $ | 3,002,941 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
CONSOLIDATED PROPERTIES |
$ | 3,485,459 | $ | 91,538 | $ | 844,010 | $ | 2,732,987 | $ | 3,465,921 | $ | 121,547 | $ | 729,086 | $ | 2,858,382 | ||||||||||||||||
UNCONSOLIDATED PROPERTIES |
211,790 | 864 | 73,594 | 139,060 | 210,505 | 753 | 66,699 | 144,559 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TOTAL INVESTMENT IN REAL ESTATE |
$ | 3,697,249 | $ | 92,402 | $ | 917,604 | $ | 2,872,047 | $ | 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. |
Page 25
Pennsylvania Real Estate Investment Trust
Capital Expenditures
(in thousands)
Quarter Ended December 31, 2011 | Year Ended December 31, 2011 | |||||||||||||||||||||||
Consolidated | Unconsolidated | Total | Consolidated | Unconsolidated | Total | |||||||||||||||||||
Redevelopment projects with incremental GLA and/or anchor replacement(1) |
$ | 10,110 | $ | 39 | $ | 10,149 | $ | 25,135 | $ | 421 | $ | 25,556 | ||||||||||||
New development projects |
426 | 6 | 432 | 1,116 | 11 | 1,127 | ||||||||||||||||||
Tenant allowances |
3,366 | 139 | 3,505 | 13,793 | 513 | 14,306 | ||||||||||||||||||
Recurring capital expenditures: |
||||||||||||||||||||||||
CAM expenditures |
4,517 | 174 | 4,691 | 11,411 | 422 | 11,833 | ||||||||||||||||||
Non-CAM expenditures |
1,298 | 1,298 | 5,088 | | 5,088 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total recurring capital expenditures |
5,815 | 174 | 5,989 | 16,499 | 422 | 16,921 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 19,717 | $ | 358 | $ | 20,075 | $ | 56,543 | $ | 1,367 | $ | 57,910 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Net of any tenant reimbursements, parcel sales, tax credits or other incentives. |
Page 26
Pennsylvania Real Estate Investment Trust
Debt Analysis as of December 31, 2011
(in thousands)
Outstanding Debt |
||||||||||||||||||||||||
Fixed Rate(1) | % of Total Indebtedness |
Variable Rate(2) |
% of Total Indebtedness |
Total | % of Total Indebtedness |
|||||||||||||||||||
Consolidated mortgage loans payable(3) |
$ | 1,677,046 | 70.9 | % | $ | 14,335 | 0.6 | % | $ | 1,691,381 | 71.5 | % | ||||||||||||
Unconsolidated mortgage loans payable |
200,773 | 8.5 | % | 3,773 | 0.1 | % | 204,546 | 8.6 | % | |||||||||||||||
Exchangeable notes(4) |
136,051 | 5.7 | % | | 0.0 | % | 136,051 | 5.7 | % | |||||||||||||||
2010 Credit Facility(5) |
240,000 | 10.1 | % | 95,000 | 4.1 | % | 335,000 | 14.2 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL OUTSTANDING DEBT |
$ | 2,253,870 | 95.2 | % | $ | 113,108 | 4.8 | % | $ | 2,366,978 | 100.0 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
AVERAGE STATED INTEREST RATE |
5.50 | % | 4.13 | % | 5.40 | % | ||||||||||||||||||
|
|
|
|
|
|
(1) | Includes variable rate debt swapped to fixed rate debt. |
(2) | The variable rate amount includes $15.4 million that is subject to a LIBOR cap with a strike rate of 2.5%. The LIBOR cap expires in April 2012. |
(3) | Includes debt premium of $282 |
(4) | Net of debt discount of $849 |
(5) | As of December 31, 2011, we have designated interest rate swap agreements to effectively fix $190.0 million of the underlying LIBOR associated with the 2010 Credit Facility until March 10, 2013 at a current weighted average rate of 1.83% (excluding the spread on the related debt). Of that notional amount, $185.0 million of this $190.0 million is also covered by a forward starting swap that becomes effective on April 2, 2012 and remains effective until March 13, 2013 at a rate of 2.96%, excluding the spread on the related debt. Additionally, $15.4 million is subject to a LIBOR cap with a strike price of 2.50%. The LIBOR cap will mature in April 2012. |
Average Debt Balance |
||||||||||||||||||||||||||||
2010 Credit Facility | ||||||||||||||||||||||||||||
Mortgage Debt(1) |
Revolving Facility |
Term Loans |
Exchangeable Notes |
Exchangeable Notes Discount |
TOTAL | |||||||||||||||||||||||
Beginning Balance |
9/30/2011 | $ | 1,950,592 | $ | 55,000 | $ | 240,000 | $ | 136,900 | $ | (1,349 | ) | $ | 2,381,143 | ||||||||||||||
Capital City Mall mortgage repayment(2) |
(48,383 | ) | | | | | (48,383 | ) | ||||||||||||||||||||
Mortgage loan amortization(3) |
(6,282 | ) | | | | | (6,282 | ) | ||||||||||||||||||||
Revolving Facility borrowing |
| 40,000 | | | | 40,000 | ||||||||||||||||||||||
Exchangeable notes discount amortization |
| | | | 500 | 500 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ending Balance |
12/31/2011 | $ | 1,895,927 | $ | 95,000 | $ | 240,000 | $ | 136,900 | $ | (849 | ) | $ | 2,366,978 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Weighted Average Balance |
$ | 1,916,911 | $ | 81,522 | $ | 240,000 | $ | 136,900 | $ | (1,183 | ) | $ | 2,374,150 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Includes debt premium. |
(2) | Includes write off of debt premium. |
(3) | 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 | ||||||||||||||||||||||||
2012 |
$ | 22,864 | $ | 282 | $ | 413,705 | $ | | $ | | $ | 136,900 | $ | (849 | ) | $ | 572,902 | |||||||||||||||
2013 |
17,694 | | 425,772 | | | | | 443,466 | ||||||||||||||||||||||||
2014 |
16,244 | | 99,203 | 95,000 | 240,000 | | | 450,447 | ||||||||||||||||||||||||
2015 |
15,367 | | 305,896 | | | | | 321,263 | ||||||||||||||||||||||||
2016 |
5,180 | | 243,745 | | | | | 248,925 | ||||||||||||||||||||||||
2017 |
3,997 | | 150,000 | | | | | 153,997 | ||||||||||||||||||||||||
Thereafter |
14,014 | | 161,964 | | | | | 175,978 | ||||||||||||||||||||||||
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$ | 95,360 | $ | 282 | $ | 1,800,285 | $ | 95,000 | $ | 240,000 | $ | 136,900 | $ | (849 | ) | $ | 2,366,978 | ||||||||||||||||
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(1) | The weighted average period to mortgage maturity is 3.37 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 | ||||||||||||
2012 |
$ | 418,552 | 5.28 | % | $ | 418,552 | 5.17 | % | ||||||||
2013 |
429,943 | 5.38 | % | 429,943 | 5.38 | % | ||||||||||
2014 |
102,331 | 7.28 | % | 102,331 | 7.28 | % | ||||||||||
2015 |
334,263 | 5.69 | % | 334,263 | 5.69 | % | ||||||||||
2016 |
263,933 | 5.38 | % | 263,933 | 5.38 | % | ||||||||||
2017 |
150,000 | 5.51 | % | 150,000 | 5.51 | % | ||||||||||
Thereafter |
196,623 | 5.61 | % | 196,623 | 5.61 | % | ||||||||||
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Total |
$ | 1,895,645 | 5.54 | % | $ | 1,895,645 | 5.52 | % | ||||||||
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(1) | Excludes amortization of debt issuance costs. |
Page 27
Pennsylvania Real Estate Investment Trust
Debt Schedule as of December 31, 2011
(in thousands)
Proportionate Share(1) | Interest Rate |
Marked to Market Interest Rate (GAAP) |
Annual Debt Service |
|||||||||||||||||||
Lender |
Debt | Debt Premium/ (Discount) |
Total | Balance at Maturity |
Maturity Date | |||||||||||||||||
Fixed Rate Mortgage Loans |
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Beaver Valley Mall |
CMBS | $42,531 | $ | $42,531 | 7.36 | % | 7.36 | % | $3,972 | $42,266 | Apr 2012 | |||||||||||
Christiana Center(2)(3)(4) |
Bank | 40,000 | | 40,000 | 3.67 | % | 3.67 | % | 1,467 | 40,000 | June 2012 | |||||||||||
Paxton Towne Centre(2)(4)(5) |
Bank | 50,000 | | 50,000 | 3.75 | % | 3.75 | % | 1,876 | 50,000 | July 2012 | |||||||||||
Cherry Hill Mall |
Life Insurance Co | 180,531 | | 180,531 | 5.42 | % | 5.42 | % | 13,510 | 177,689 | Oct 2012 | |||||||||||
Cherry Hill Mall Supplemental Loan |
Life Insurance Co | 53,612 | | 53,612 | 5.51 | % | 5.51 | % | 3,030 | 53,003 | Oct 2012 | |||||||||||
Cumberland Mall Loan #1 |
CMBS | 39,470 | 282 | 39,752 | 6.50 | % | 5.40 | % | 3,413 | 38,782 | Nov 2012 | |||||||||||
New River Valley Mall(2)(4)(6)(7) |
Bank | 25,000 | | 25,000 | 4.83 | % | 4.83 | % | 1,208 | 25,000 | Jan 2013 | |||||||||||
Dartmouth Mall |
CMBS | 59,769 | | 59,769 | 4.95 | % | 4.95 | % | 4,484 | 57,594 | June 2013 | |||||||||||
Moorestown Mall |
CMBS | 54,859 | | 54,859 | 4.95 | % | 4.95 | % | 4,115 | 52,863 | June 2013 | |||||||||||
Jacksonville Mall(2)(8) |
Bank | 56,265 | | 56,265 | 5.83 | % | 5.83 | % | 3,277 | 56,265 | Sept 2013 | |||||||||||
Logan Valley Mall(2)(8) |
Bank | 63,000 | | 63,000 | 5.79 | % | 5.79 | % | 3,649 | 63,000 | Sept 2013 | |||||||||||
Wyoming Valley Mall(2)(8) |
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 | 68,148 | | 68,148 | 7.50 | % | 7.50 | % | 5,873 | 66,732 | Jan 2014 | |||||||||||
Lycoming Mall |
Bank | 34,183 | | 34,183 | 6.84 | % | 6.84 | % | 3,001 | 32,470 | Jul 2014 | |||||||||||
Springfield East(2)(9) |
Bank | 2,228 | | 2,228 | 5.39 | % | 5.39 | % | 92 | 2,061 | Mar 2015 | |||||||||||
Springfield Park(2)(9) |
Bank | 2,616 | | 2,616 | 5.39 | % | 5.39 | % | 108 | 2,419 | Mar 2015 | |||||||||||
Magnolia Mall |
CMBS | 59,551 | | 59,551 | 5.33 | % | 5.33 | % | 4,413 | 54,842 | July 2015 | |||||||||||
Patrick Henry Mall |
Life Insurance Co | 91,428 | | 91,428 | 6.34 | % | 6.34 | % | 7,743 | 83,210 | Oct 2015 | |||||||||||
Springfield Mall(2) |
Bank | 32,991 | | 32,991 | 4.77 | % | 4.77 | % | 2,118 | 30,740 | Nov 2015 | |||||||||||
Willow Grove Park |
Life Insurance Co | 145,449 | | 145,449 | 5.65 | % | 5.65 | % | 11,083 | 132,624 | Dec 2015 | |||||||||||
Valley Mall |
CMBS | 85,384 | | 85,384 | 5.49 | % | 5.49 | % | 5,014 | 78,996 | Mar 2016 | |||||||||||
Woodland Mall |
CMBS | 151,055 | | 151,055 | 5.58 | % | 5.58 | % | 10,760 | 140,484 | Apr 2016 | |||||||||||
801 Market Street(2)(4)(8) |
Bank | 25,000 | | 25,000 | 3.84 | % | 3.84 | % | 960 | 24,265 | Jul 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 | 5,686 | | 5,686 | 7.00 | % | 7.00 | % | 574 | 4,145 | Nov 2018 | |||||||||||
Cumberland Mall Loan #2 |
Bank | 2,240 | | 2,240 | 5.00 | % | 5.00 | % | 390 | | Dec 2018 | |||||||||||
Valley View Mall |
CMBS | 31,445 | | 31,445 | 5.95 | % | 5.95 | % | 2,290 | 27,161 | July 2020 | |||||||||||
Lehigh Valley Mall |
Life Insurance Co | 68,739 | | 68,739 | 5.88 | % | 5.88 | % | 4,972 | 58,519 | July 2020 | |||||||||||
Red Rose Commons |
CMBS | 14,868 | | 14,868 | 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 | |||||||||||
Metroplex Shopping Center |
CMBS | 43,645 | | 43,645 | 5.00 | % | 5.00 | % | 2,681 | 33,978 | Oct 2023 | |||||||||||
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||||||||||||||
Total Fixed Rate Mortgage Loans |
1,877,693 | 282 | 1,877,975 | 5.57 | % | 5.55 | % | 126,193 | 1,785,269 | |||||||||||||
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Variable Rate Mortgage Loans |
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Christiana Center(2)(3) |
Bank | 4,635 | | 4,635 | 2.12 | % | 2.12 | % | 860 | 4,257 | June 2012 | |||||||||||
Paxton Towne Centre(2)(5) |
Bank | 4,000 | | 4,000 | 2.27 | % | 2.27 | % | 91 | 4,000 | July 2012 | |||||||||||
Pavilion East Associates |
Bank | 3,773 | | 3,773 | 3.02 | % | 3.02 | % | 200 | 3,708 | Aug 2012 | |||||||||||
New River Valley Mall(2)(6)(7) |
Bank | 3,050 | | 3,050 | 3.32 | % | 3.32 | % | 101 | 3,050 | Jan 2013 | |||||||||||
801 Market Street(2)(8) |
Bank | 2,494 | | 2,494 | 2.36 | % | 2.36 | % | 685 | | Jul 2016 | |||||||||||
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|
|
||||||||||||||
Total Variable Rate Mortgage Loans |
17,952 | | 17,952 | 2.58 | % | 2.58 | % | 1,937 | 15,015 | |||||||||||||
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|
||||||||||||||
Total Mortgage Loans |
$1,895,645 | $282 | $1,895,927 | 5.54 | % | 5.52 | % | $128,130 | $1,800,284 | |||||||||||||
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||||||||||||||
CONSOLIDATED MORTGAGE LOANS |
$1,691,099 | $282 | $1,691,381 | 5.56 | % | 5.54 | % | $114,739 | $1,626,553 | |||||||||||||
UNCONSOLIDATED MORTGAGE LOANS |
204,546 | | 204,546 | 5.38 | % | 5.38 | % | 13,391 | 173,731 | |||||||||||||
EXCHANGEABLE NOTES(10) |
136,900 | (849) | 136,051 | 4.00 | % | 5.87 | % | 5,476 | 136,900 | June 2012 | ||||||||||||
2010 CREDIT FACILITY - FIXED RATE(11)(12)(13) |
190,000 | | 190,000 | 5.83 | % | 5.83 | % | 11,073 | 190,000 | Mar 2014 | ||||||||||||
2010 CREDIT FACILITY - VARIABLE RATE(11)(12) |
145,000 | | 145,000 | 4.32 | % | 4.32 | % | 6,264 | 145,000 | Mar 2014 | ||||||||||||
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|
||||||||||||||
Total |
$2,367,545 | $(567) | $2,366,978 | 5.40 | % | 5.49 | % | $150,943 | $2,272,184 | |||||||||||||
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AMORTIZATION OF DEFERRED FINANCING FEES |
| | | | 0.38 | % | | | ||||||||||||||
|
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|
|
||||||||||||||
EFFECTIVE INTEREST RATE |
$2,367,545 | $(567) | $2,366,978 | 5.40 | % | 5.87 | % | $150,943 | $2,272,184 | |||||||||||||
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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) | All or a portion of the mortgage loan has been effectively swapped to the fixed interest rate presented. |
(3) | The mortgage loan has two one year extension options. The first option was exercised to extend the maturity date to June 2012. |
(4) | A portion of the mortgage loan bears interest at a variable rate. See Variable Rate Mortgage Loans section of this table. |
(5) | The mortgage loan has two one year extension options. The first option was exercised to extend the maturity date to July 2012. |
(6) | The mortgage loan has one one year extension option. |
(7) | The mortgage loan was refinanced in January 2012. The new mortgage loan has a term of seven years and expires in January 2019. |
(8) | The mortgage loan has two one year extension options. |
(9) | The mortgage loan has one five year extension option. |
(10) | The marked to market interest rate includes the effect of deferred financing fee amortization and debt discount amortization. |
(11) | Secured by first mortgage liens on 20 properties. See page 29 for property detail. |
(12) | The 2010 Credit Facility consists of the 2010 Term Loan, with a balance of $240,000 and the Revolving Facility, with a balance of $95,000. The total available to borrow against the Revolving Facility is $155,000. |
(13) | As of December 31, 2011, we have designated interest rate swap agreements to effectively fix $190,000 of the underlying LIBOR associated with the 2010 Credit Facility until March 10, 2013 at a current weighted average rate of 1.83% (excluding the spread on the related debt). Of that notional amount, $185,000 of this $190,000 is also covered by a forward starting swap that becomes effective on April 2, 2012 and remains effective until March 13, 2013 at a rate of 2.96%, excluding the spread on the related debt. Additionally, $15.4 million 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
Selected Debt Ratios(1)
December 31, 2011 | ||||
Consolidated Liabilities to Gross Asset Value |
66.87 | % | ||
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 70% |
||||
EBITDA to Interest Expense |
1.91 | |||
EBITDA may not be less than 1.60 to 1.00 |
||||
Adjusted EBITDA to Fixed Charges |
1.60 | |||
Adjusted EBITDA may not be less than 1.35 to 1.00 |
||||
Corporate Debt Yield |
11.00 | % | ||
The ratio of EBITDA to total indebtedness may not be less than 9.50%. |
||||
Facility Debt Yield |
15.97 | % | ||
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
Shareholder Information
Ten Largest Institutional Shareholders: |
Common Shares Held (1) |
|||
The Vanguard Group, Inc. |
5,636,097 | |||
BlackRock Fund Advisors |
4,468,542 | |||
Dreman Value Management LLC |
2,526,920 | |||
State Street Global Advisors |
1,788,029 | |||
Deutsche Investment Management Americas, Inc. |
1,761,275 | |||
JPMorgan Asset Management, Inc. |
1,324,041 | |||
Pacific Heights Asset Management LLC |
1,275,000 | |||
Northern Trust Investments |
1,219,387 | |||
Brookfield Investment Management, Inc. |
1,008,351 | |||
Numeric Investors LLC |
761,400 | |||
|
|
|||
TOTAL of Ten Largest Institutional: |
21,769,042 | |||
TOTAL of all Institutional Holders: |
38,394,134 | |||
Ten Largest as % of Total Institutional: |
56.7 | % |
(1) | Based on 13F and 13G filings as of December 31, 2011 or most recent filings. |
Breakdown of Share & Unit Ownership: Shares Held |
Most Recent | % of Outstanding | December 31, 2010 | |||||||||
Institutional(1) |
38,394,134 | 66.2 | % | 38,639,075 | ||||||||
Retail(2) |
14,547,505 | 25.1 | % | 13,992,951 | ||||||||
Insiders(3) |
5,064,204 | 8.7 | % | 5,133,095 | ||||||||
|
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|
|
|
|
|||||||
TOTAL |
58,005,843 | 100.0 | % | 57,765,121 | ||||||||
|
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|
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|
|
(1) | Based on 13F and 13G filings as of December 31, 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
Definitions
Funds From Operations (FFO)
The National Association of Real Estate Investment Trusts (NAREIT) defines Funds From Operations (FFO), which is a non-GAAP measure commonly used by REITs, as income before gains and 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. We compute FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than we do. NAREIT guidance issued in 2003 provides that excluding impairment write downs of depreciable real estate is consistent with the definition of FFO. Certain regulatory staff had indicated, however, a view that impairment write downs were required to be included in FFO. In late 2011, NAREIT updated its guidance to reflect that certain regulatory staff has conveyed that it no longer holds that view, and NAREIT reiterated its original guidance that excluding such impairments is consistent with the NAREIT definition. In this report, prior period FFO amounts have been revised to reflect this updated NAREIT guidance regarding impairment write downs.
We use FFO and FFO per diluted share and OP Unit in measuring our 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. We compute FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than us.
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 our 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 our cash needs, including our ability to make cash distributions.
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) plus our share of revenue and operating expenses of our partnership investments, and includes real estate revenue and operating expenses from properties included in discontinued operations. 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