Exhibit 99.1
Supplemental Financial and Operating Information
Quarter Ended June 30, 2015
www.preit.com
NYSE: PEI
NYSE: PEIPRA, PEIPRB
Pennsylvania Real Estate Investment Trust
Supplemental Financial and Operating Information
June 30, 2015
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Table of Contents | |
Introduction | |
Company Information | |
Market Capitalization and Capital Resources | |
Operating Results | |
Statement of Operations - Proportionate Consolidation Method - Quarters Ended June 30, 2015 and June 30, 2014 | |
Statement of Operations - Proportionate Consolidation Method - Six Months Ended June 30, 2015 and June 30, 2014 | |
Statement of Net Operating Income - Quarters and Six Months Ended June 30, 2015 and June 30, 2014 | |
Computation of Earnings Per Share | |
Funds From Operations and Funds Available For Distribution - Quarters Ended June 30, 2015 and June 30, 2014 | |
Funds From Operations and Funds Available For Distribution - Six Months Ended June 30, 2015 and June 30, 2014 | |
Operating Statistics | |
Leasing Activity Summary | |
Summarized Sales and Rent Per Square Foot and Occupancy Percentages | |
Mall Occupancy Percentage and Sales Per Square Foot | |
Top Twenty Tenants | |
Lease Expirations | |
Property Information | |
Department Store Lease Expirations | |
Balance Sheet | |
Condensed Balance Sheet - Proportionate Consolidation Method | |
Investment in Real Estate | |
Capital Expenditures | |
Debt Analysis | |
Debt Schedule | |
Selected Debt Ratios | |
Definitions | |
Forward Looking Statements | |
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. Our portfolio currently consists of a total of 42 retail properties, 37 of which are operating retail properties, four which are development properties, and one which is under redevelopment (The Gallery at Market East). The 37 operating retail properties have a total of 28.2 million square feet and include 32 enclosed malls and five other retail properties. The operating properties are located in 11 states in the eastern half of the United States, primarily in the Mid-Atlantic region. 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:
Heather Crowell, Vice President of Corporate Communications and Investor Relations
200 South Broad Street
Philadelphia, PA 19102
Telephone: (215) 875-0735
Fax: (215) 546-2504
Email: crowellh@preit.com
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Research Coverage | | | | | | |
| | | |
Company | | Analyst | | Phone Number | | |
| | | | | | |
Bank of America/Merrill Lynch | | Craig Schmidt | | (646) 855-3640 | | |
| | | |
Barclays Capital | | Ross Smotrich | | (212) 526-2306 | | |
| | | |
Citi Investment Research | | Michael Bilerman | | (212) 816-1383 | | |
| | Christy McElroy | | (212) 816-6981 | | |
| | | |
Discern | | David Wiggington | | (646) 863-4177 | | |
| | | |
Green Street Advisors | | Daniel J. Busch | | (949) 640-8780 | | |
| | | |
JP Morgan | | Michael W. Mueller | | (212) 622-6689 | | |
| | | |
Stifel Nicolaus | | Nathan Isbee | | (443) 224-1346 | | |
| | Jennifer Hummert | | (443) 224-1288 | | |
| | | | | | |
SunTrust Robinson Humphrey | | Ki Bin Kim | | (212) 303-4124 | | |
NOTE: Press release announcements are available on the Company's website at www.preit.com.
Pennsylvania Real Estate Investment Trust
Market Capitalization and Capital Resources
(in thousands, except per share amounts)
|
| | | | | | | | | | | | | | | | |
| | Quarter Ended June 30, | | Year Ended December 31, |
| | 2015 | | 2014 | | 2014 | | 2013 |
TRADING INFORMATION | | | | | | | | |
Common Shares | | | | | | | | |
High Price per share | | $ | 23.55 |
| | $ | 18.83 |
| | $ | 24.35 |
| | $ | 22.54 |
|
Low Price per share | | $ | 21.25 |
| | $ | 16.35 |
| | $ | 16.35 |
| | $ | 14.20 |
|
Closing Share Price (at the end of period) | | $ | 21.34 |
| | $ | 18.82 |
| | $ | 23.46 |
| | $ | 18.98 |
|
Series A Preferred Shares | | | | | | | | |
High Price per share | | $ | 27.05 |
| | $ | 26.85 |
| | $ | 27.24 |
| | $ | 28.06 |
|
Low Price per share | | $ | 25.98 |
| | $ | 25.70 |
| | $ | 25.04 |
| | $ | 24.77 |
|
Closing Share Price (at the end of period) | | $ | 26.58 |
| | $ | 26.35 |
| | $ | 26.24 |
| | $ | 25.16 |
|
Series B Preferred Shares | | | | | | | | |
High Price per share | | $ | 26.75 |
| | $ | 25.88 |
| | $ | 26.41 |
| | $ | 26.86 |
|
Low Price per share | | $ | 25.75 |
| | $ | 24.91 |
| | $ | 23.53 |
| | $ | 23.05 |
|
Closing Share Price (at the end of period) | | $ | 26.52 |
| | $ | 25.37 |
| | $ | 25.89 |
| | $ | 23.73 |
|
MARKET CAPITALIZATION | | | | | | | | |
EQUITY CAPITALIZATION | | | | | | | | |
Common Shares Outstanding | | 69,167 |
| | 68,749 |
| | 68,801 |
| | 68,293 |
|
OP Units Outstanding | | 8,348 |
| | 2,129 |
| | 2,122 |
| | 2,129 |
|
Total Common Shares and OP Units Outstanding | | 77,515 |
| | 70,878 |
| | 70,923 |
| | 70,422 |
|
Equity Market Capitalization—Common Shares and OP Units | | $ | 1,654,176 |
| | $ | 1,333,926 |
| | $ | 1,663,848 |
| | $ | 1,336,614 |
|
Series A Preferred Shares, Nominal Value | | 115,000 |
| | 115,000 |
| | 115,000 |
| | 115,000 |
|
Series B Preferred Shares, Nominal Value | | 86,250 |
| | 86,250 |
| | 86,250 |
| | 86,250 |
|
Total Equity Market Capitalization | | $ | 1,855,426 |
| | $ | 1,535,176 |
| | $ | 1,865,098 |
| | $ | 1,537,864 |
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DEBT CAPITALIZATION | | | | | | | | |
Secured Debt Balance | | $ | 1,559,385 |
| | $ | 1,691,538 |
| | $ | 1,598,257 |
| | $ | 1,701,101 |
|
Unsecured Debt Balance (1) (2) | | 520,000 |
| | 130,000 |
| | 130,000 |
| | 130,000 |
|
Debt Capitalization | | 2,079,385 |
| | 1,821,538 |
| | 1,728,257 |
| | 1,831,101 |
|
TOTAL MARKET CAPITALIZATION | | $ | 3,934,811 |
| | $ | 3,356,714 |
| | $ | 3,593,355 |
| | $ | 3,368,965 |
|
Equity Capitalization/Total Market Capitalization | | 47.2 | % | | 45.7 | % | | 51.9 | % | | 45.6 | % |
Debt Capitalization/Total Market Capitalization | | 52.8 | % | | 54.3 | % | | 48.1 | % | | 54.4 | % |
Unsecured Debt Balance/Total Debt | | 25.0 | % | | 7.1 | % | | 7.5 | % | | 7.1 | % |
DISTRIBUTIONS PER COMMON SHARE | | | | | | | | |
Capital Gain Distributions | | (3) | | $ | 0.03 |
| | $ | 0.11 |
| | $ | — |
|
Non-Dividend Distributions | | (3) | | 0.17 |
| | 0.69 |
| | 0.74 |
|
Distributions per common share | | $ | 0.21 |
| | $ | 0.20 |
| | $ | 0.80 |
| | $ | 0.74 |
|
Annualized Dividend Yield (4) | | 3.9 | % | | 4.3 | % | | 3.4 | % | | 3.9 | % |
CAPITAL RESOURCES | | | | | | | | |
Cash and Cash Equivalents | | $ | 42,940 |
| | $ | 36,630 |
| | $ | 47,721 |
| | $ | 41,867 |
|
Revolving Facility | | 400,000 |
| | 400,000 |
| | 400,000 |
| | 400,000 |
|
Amount Outstanding | | (120,000 | ) | | — |
| | — |
| | (130,000 | ) |
Letter of Credit | | (7,852 | ) | | (7,135 | ) | | (7,135 | ) | | — |
|
Available Revolving Facility | | 272,148 |
| | 392,865 |
| | 392,865 |
| | 270,000 |
|
Term Loans | | 400,000 |
| | 250,000 |
| | 250,000 |
| | — |
|
Amount Borrowed | | (400,000 | ) | | (130,000 | ) | | (130,000 | ) | | — |
|
Available Term Loans | | — |
| | 120,000 |
| | 120,000 |
| | — |
|
TOTAL | | $ | 315,088 |
| | $ | 549,495 |
| | $ | 560,586 |
| | $ | 311,867 |
|
Shelf Registration | | $ | 1,000,000 |
| | $ | 568,750 |
| | $ | 1,000,000 |
| | $ | 568,750 |
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| |
(1) | The unsecured debt balance includes a Revolving Facility balance of $120,000 as of June 30, 2015 and $130,000 as of December 31, 2013. |
| |
(2) | The unsecured debt balance includes a Term Loan balance of $400,000 as of June 30, 2015 and $130,000 as of December 31, 2014 and June 30, 2014, respectively. |
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(3) | Tax status of 2015 dividend payments will be available in January 2016. |
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(4) | Based on closing share price at the end of the period. |
Pennsylvania Real Estate Investment Trust
Statement of Operations - Quarters Ended June 30, 2015 and June 30, 2014
Proportionate Consolidation Method
(in thousands)
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended June 30, 2015 | | Quarter Ended June 30, 2014 |
| | GAAP | | PREIT’s share of unconsolidated partnerships (1) | | Total | | GAAP | | PREIT’s share of unconsolidated partnerships (1) | | Total |
REVENUE: | | | | | | | | | | | | |
Base rent | | $ | 67,417 |
| | $ | 8,026 |
| | $ | 75,443 |
| | $ | 71,646 |
| | $ | 6,912 |
| | $ | 78,558 |
|
Expense reimbursements | | 30,541 |
| | 3,669 |
| | 34,210 |
| | 30,879 |
| | 2,835 |
| | 33,714 |
|
Percentage rent | | 322 |
| | 10 |
| | 332 |
| | 324 |
| | 15 |
| | 339 |
|
Lease termination revenue | | 25 |
| | 15 |
| | 40 |
| | 154 |
| | — |
| | 154 |
|
Other real estate revenue | | 2,577 |
| | 373 |
| | 2,950 |
| | 3,142 |
| | 325 |
| | 3,467 |
|
Total real estate revenue | | 100,882 |
| | 12,093 |
| | 112,975 |
| | 106,145 |
| | 10,087 |
| | 116,232 |
|
Other income | | 811 |
| | — |
| | 811 |
| | 680 |
| | — |
| | 680 |
|
Total revenue | | 101,693 |
| | 12,093 |
| | 113,786 |
| | 106,825 |
| | 10,087 |
| | 116,912 |
|
EXPENSES: | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | |
Property operating expenses: | | | | | | | | | | | | |
CAM and real estate taxes | | (33,263 | ) | | (3,372 | ) | | (36,635 | ) | | (35,228 | ) | | (2,074 | ) | | (37,302 | ) |
Utilities | | (4,959 | ) | | (374 | ) | | (5,333 | ) | | (5,841 | ) | | (177 | ) | | (6,018 | ) |
Other property operating expenses | | (3,792 | ) | | (724 | ) | | (4,516 | ) | | (3,295 | ) | | (610 | ) | | (3,905 | ) |
Total property operating expenses | | (42,014 | ) | | (4,470 | ) | | (46,484 | ) | | (44,364 | ) | | (2,861 | ) | | (47,225 | ) |
Depreciation and amortization | | (36,641 | ) | | (3,011 | ) | | (39,652 | ) | | (37,135 | ) | | (1,724 | ) | | (38,859 | ) |
General and administrative expenses | | (9,126 | ) | | — |
| | (9,126 | ) | | (8,774 | ) | | — |
| | (8,774 | ) |
Provision for employee separation expense | | — |
| | — |
| | — |
| | (4,877 | ) | | — |
| | (4,877 | ) |
Acquisition costs and other expenses | | (817 | ) | | (14 | ) | | (831 | ) | | (960 | ) | | — |
| | (960 | ) |
Total operating expenses | | (88,598 | ) | | (7,495 | ) | | (96,093 | ) | | (96,110 | ) | | (4,585 | ) | | (100,695 | ) |
Interest expense, net (2) | | (21,126 | ) | | (2,566 | ) | | (23,692 | ) | | (21,550 | ) | | (2,718 | ) | | (24,268 | ) |
Impairment of assets | | (28,667 | ) | | — |
| | (28,667 | ) | | (16,098 | ) | | — |
| | (16,098 | ) |
Total expenses | | (138,391 | ) | | (10,061 | ) | | (148,452 | ) | | (133,758 | ) | | (7,303 | ) | | (141,061 | ) |
Loss before equity in income of partnerships and gain on sale interest in real estate | | (36,698 | ) | | 2,032 |
| | (34,666 | ) | | (26,933 | ) | | 2,784 |
| | (24,149 | ) |
Equity in income of partnerships | | 2,032 |
| | (2,032 | ) | | — |
| | 2,784 |
| | (2,784 | ) | | — |
|
Gain on sale of interest in real estate | | — |
| | — |
| | — |
| | 99 |
| | — |
| | 99 |
|
Net loss | | (34,666 | ) | | — |
| | (34,666 | ) | | (24,050 | ) | | — |
| | (24,050 | ) |
Less: net loss attributed to noncontrolling interest | | 3,742 |
| | — |
| | 3,742 |
| | 725 |
| | — |
| | 725 |
|
Net loss attributable to PREIT | | (30,924 | ) | | — |
| | (30,924 | ) | | (23,325 | ) | | — |
| | (23,325 | ) |
Less: preferred share dividends | | (3,962 | ) | | — |
| | (3,962 | ) | | (3,962 | ) | | — |
| | (3,962 | ) |
Net loss attributable to PREIT common shareholders | | $ | (34,886 | ) | | $ | — |
| | $ | (34,886 | ) | | $ | (27,287 | ) | | $ | — |
| | $ | (27,287 | ) |
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(1) | PREIT’s proportionate share of partnership operations is “grossed up” to reflect the Company’s share of the total revenue and expenses of the underlying properties. |
| |
(2) | Net of capitalized interest expense of $770 and $191 for the quarters ended June 30, 2015 and 2014, respectively. |
Pennsylvania Real Estate Investment Trust
Statement of Operations - Six Months Ended June 30, 2015 and June 30, 2014
Proportionate Consolidation Method
(in thousands)
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 2015 | | Six Months Ended June 30, 2014 |
| | Continuing Operations | | | | Continuing Operations | | |
| | GAAP | | PREIT’s share of unconsolidated partnerships (1) | | Total | | GAAP | | PREIT’s share of unconsolidated partnerships (1) | | Total |
REVENUE: | | | | | | | | | | | | |
Base rent | | $ | 131,691 |
| | $ | 16,762 |
| | $ | 148,453 |
| | $ | 142,988 |
| | $ | 13,786 |
| | $ | 156,774 |
|
Expense reimbursements | | 62,050 |
| | 7,689 |
| | 69,739 |
| | 65,230 |
| | 6,125 |
| | 71,355 |
|
Percentage rent | | 846 |
| | 96 |
| | 942 |
| | 914 |
| | 67 |
| | 981 |
|
Lease termination revenue | | 467 |
| | 15 |
| | 482 |
| | 254 |
| | 12 |
| | 266 |
|
Other real estate revenue | | 4,612 |
| | 694 |
| | 5,306 |
| | 5,368 |
| | 606 |
| | 5,974 |
|
Total real estate revenue | | 199,666 |
| | 25,256 |
| | 224,922 |
| | 214,754 |
| | 20,596 |
| | 235,350 |
|
Other income | | 2,084 |
| | — |
| | 2,084 |
| | 1,458 |
| | — |
| | 1,458 |
|
Total revenue | | 201,750 |
| | 25,256 |
| | 227,006 |
| | 216,212 |
| | 20,596 |
| | 236,808 |
|
EXPENSES: | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | |
Property operating expenses: | | | | | | | | | | | | |
CAM and real estate taxes | | (67,069 | ) | | (7,262 | ) | | (74,331 | ) | | (74,631 | ) | | (4,799 | ) | | (79,430 | ) |
Utilities | | (10,108 | ) | | (872 | ) | | (10,980 | ) | | (14,051 | ) | | (430 | ) | | (14,481 | ) |
Other operating expenses | | (7,988 | ) | | (1,538 | ) | | (9,526 | ) | | (7,399 | ) | | (1,167 | ) | | (8,566 | ) |
Total property operating expenses | | (85,165 | ) | | (9,672 | ) | | (94,837 | ) | | (96,081 | ) | | (6,396 | ) | | (102,477 | ) |
Depreciation and amortization | | (69,830 | ) | | (6,223 | ) | | (76,053 | ) | | (73,370 | ) | | (3,566 | ) | | (76,936 | ) |
General and administrative expenses | | (18,070 | ) | | — |
| | (18,070 | ) | | (17,851 | ) | | — |
| | (17,851 | ) |
Provision for employee separation expense | | — |
| | — |
| | — |
| | (4,877 | ) | | — |
| | (4,877 | ) |
Acquisition costs and other expenses | | (5,269 | ) | | (41 | ) | | (5,310 | ) | | (2,606 | ) | | — |
| | (2,606 | ) |
Total operating expenses | | (178,334 | ) | | (15,936 | ) | | (194,270 | ) | | (194,785 | ) | | (9,962 | ) | | (204,747 | ) |
Interest expense, net (2) | | (41,271 | ) | | (5,206 | ) | | (46,477 | ) | | (41,720 | ) | | (5,448 | ) | | (47,168 | ) |
Impairment of assets | | (34,907 | ) | | — |
| | (34,907 | ) | | (17,398 | ) | | — |
| | (17,398 | ) |
Total expenses | | (254,512 | ) | | (21,142 | ) | | (275,654 | ) | | (253,903 | ) | | (15,410 | ) | | (269,313 | ) |
Loss before equity in income of partnerships, gain on sale of non operating real estate and gain on sale of real estate | | (52,762 | ) | | 4,114 |
| | (48,648 | ) | | (37,691 | ) | | 5,186 |
| | (32,505 | ) |
Equity in income of partnerships | | 4,114 |
| | (4,114 | ) | | — |
| | 5,186 |
| | (5,186 | ) | | — |
|
Gain on sale of non operating real estate | | 43 |
| | — |
| | 43 |
| | — |
| | — |
| | — |
|
Gain on sale of interest in real estate | | — |
| | — |
| | — |
| | 99 |
| | — |
| | 99 |
|
Net loss | | (48,605 | ) | | — |
| | (48,605 | ) | | (32,406 | ) | | — |
| | (32,406 | ) |
Less: net loss attributed to noncontrolling interest | | 4,172 |
| | — |
| | 4,172 |
| | 977 |
| | — |
| | 977 |
|
Net loss attributable to PREIT | | $ | (44,433 | ) | | $ | — |
| | $ | (44,433 | ) | | $ | (31,429 | ) | | $ | — |
| | $ | (31,429 | ) |
Less: preferred share dividends | | (7,924 | ) | | — |
| | (7,924 | ) | | (7,924 | ) | | — |
| | (7,924 | ) |
Net loss attributable to PREIT common shareholders | | $ | (52,357 | ) | | $ | — |
| | $ | (52,357 | ) | | $ | (39,353 | ) | | $ | — |
| | $ | (39,353 | ) |
| |
(1) | PREIT’s proportionate share of partnership operations is “grossed up” to reflect the Company’s share of the total revenue and expenses of the underlying properties. |
| |
(2) | Net of capitalized interest expense of $805 and $294 for the six months ended June 30, 2015 and 2014, respectively. |
Pennsylvania Real Estate Investment Trust
Statement of Net Operating Income (1)
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended June 30, 2015 | | Quarter Ended June 30, 2014 |
SAME STORE RETAIL/NON SAME STORE | | Same | | Non Same | | Total | | Same | | Non Same | | Total |
Real estate revenue: | | | | | | | | | | | | |
Base rent | | $ | 69,271 |
| | $ | 6,172 |
| | $ | 75,443 |
| | $ | 69,197 |
| | $ | 9,361 |
| | $ | 78,558 |
|
Expense reimbursements | | 31,332 |
| | 2,878 |
| | 34,210 |
| | 30,590 |
| | 3,124 |
| | 33,714 |
|
Percentage rent | | 336 |
| | (4 | ) | | 332 |
| | 339 |
| | — |
| | 339 |
|
Lease termination revenue | | 58 |
| | (18 | ) | | 40 |
| | 154 |
| | — |
| | 154 |
|
Other real estate revenue | | 2,668 |
| | 282 |
| | 2,950 |
| | 2,879 |
| | 588 |
| | 3,467 |
|
TOTAL REAL ESTATE REVENUE | | 103,665 |
| | 9,310 |
| | 112,975 |
| | 103,159 |
| | 13,073 |
| | 116,232 |
|
Property operating expenses: | | | | | | | | | | | | |
CAM and real estate taxes | | (32,308 | ) | | (4,327 | ) | | (36,635 | ) | | (32,003 | ) | | (5,299 | ) | | (37,302 | ) |
Utilities | | (4,782 | ) | | (551 | ) | | (5,333 | ) | | (5,361 | ) | | (657 | ) | | (6,018 | ) |
Other property operating expenses | | (3,734 | ) | | (782 | ) | | (4,516 | ) | | (2,890 | ) | | (1,015 | ) | | (3,905 | ) |
TOTAL PREOPERTY OPERATING EXPENSES | | (40,824 | ) | | (5,660 | ) | | (46,484 | ) | | (40,254 | ) | | (6,971 | ) | | (47,225 | ) |
NET OPERATING INCOME | | $ | 62,841 |
| | $ | 3,650 |
| | $ | 66,491 |
| | $ | 62,905 |
| | $ | 6,102 |
| | $ | 69,007 |
|
| | | | | | | | | | | | |
| | 2015 | | % change 2014 to 2015 | | 2014 | | | | | | |
Same Store NOI variance | | | | | | | | | | | | |
Same Store NOI (2) | | $ | 62,841 |
| | (0.1 | )% | | $ | 62,905 |
| | | | | | |
Same Store NOI excluding lease terminations | | $ | 62,783 |
| | 0.1 | % | | $ | 62,751 |
| | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six months ended June 30, 2015 | | Six months ended June 30, 2014 |
SAME STORE RETAIL/NON SAME STORE | | Same | | Non Same | | Total | | Same | | Non Same | | Total |
Real estate revenue: | | | | | | | | | | | | |
Base rent | | $ | 138,771 |
| | $ | 9,682 |
| | $ | 148,453 |
| | $ | 138,070 |
| | $ | 18,704 |
| | $ | 156,774 |
|
Expense reimbursements | | 65,566 |
| | 4,173 |
| | 69,739 |
| | 64,764 |
| | 6,591 |
| | 71,355 |
|
Percentage rent | | 925 |
| | 17 |
| | 942 |
| | 965 |
| | 16 |
| | 981 |
|
Lease termination revenue | | 440 |
| | 42 |
| | 482 |
| | 266 |
| | — |
| | 266 |
|
Other real estate revenue | | 4,838 |
| | 468 |
| | 5,306 |
| | 4,887 |
| | 1,087 |
| | 5,974 |
|
TOTAL REAL ESTATE REVENUE | | 210,540 |
| | 14,382 |
| | 224,922 |
| | 208,952 |
| | 26,398 |
| | 235,350 |
|
Property operating expenses: | | | | | | | | | | | | |
CAM and real estate taxes | | (67,755 | ) | | (6,576 | ) | | (74,331 | ) | | (68,504 | ) | | (10,926 | ) | | (79,430 | ) |
Utilities | | (10,114 | ) | | (866 | ) | | (10,980 | ) | | (12,613 | ) | | (1,868 | ) | | (14,481 | ) |
Other property operating expenses | | (8,105 | ) | | (1,421 | ) | | (9,526 | ) | | (6,710 | ) | | (1,856 | ) | | (8,566 | ) |
TOTAL PREOPERTY OPERATING EXPENSES | | (85,974 | ) | | (8,863 | ) | | (94,837 | ) | | (87,827 | ) | | (14,650 | ) | | (102,477 | ) |
NET OPERATING INCOME | | $ | 124,566 |
| | $ | 5,519 |
| | $ | 130,085 |
| | $ | 121,125 |
| | $ | 11,748 |
| | $ | 132,873 |
|
| | | | | | | | | | | | |
| | 2015 | | % change 2014 to 2015 | | 2014 | | | | | | |
Same Store NOI variance | | | | | | | | | | | | |
Same Store NOI (2) | | $ | 124,566 |
| | 2.8 | % | | $ | 121,125 |
| | | | | | |
Same Store NOI excluding lease terminations | | $ | 124,126 |
| | 2.7 | % | | $ | 120,859 |
| | | | | | |
| |
(1) | PREIT's proportionate share of partnership operations is "grossed up" to reflect the Company's share of the total revenue and expenses of the underlying properties. |
| |
(2) | Same Store NOI definition can be found on page 25. |
Pennsylvania Real Estate Investment Trust
Computation of Earnings Per Share
(in thousands, except per share amounts)
|
| | | | | | | | | | | | | | | | |
| | Quarter Ended June 30, | | Six Months Ended June 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
Net loss | | $ | (34,666 | ) | | $ | (24,050 | ) | | $ | (48,605 | ) | | $ | (32,406 | ) |
Noncontrolling interest | | 3,742 |
| | 725 |
| | 4,172 |
| | 977 |
|
Dividends on preferred shares | | (3,962 | ) | | (3,962 | ) | | (7,924 | ) | | (7,924 | ) |
Dividends on unvested restricted shares | | (79 | ) | | (92 | ) | | (165 | ) | | (205 | ) |
Net loss used to calculate loss per share - basic and diluted | | $ | (34,965 | ) | | $ | (27,379 | ) | | $ | (52,522 | ) | | $ | (39,558 | ) |
| | | | | | | | |
Basic and diluted loss per share | | $ | (0.51 | ) | | $ | (0.40 | ) | | $ | (0.76 | ) | | $ | (0.58 | ) |
| | | | | | | | |
Weighted average common shares outstanding | | 69,138 |
| | 68,737 |
| | 69,058 |
| | 68,619 |
|
Weighted average unvested restricted shares | | (385 | ) | | (501 | ) | | (398 | ) | | (528 | ) |
Weighted average shares outstanding - basic | | 68,753 |
| | 68,236 |
| | 68,660 |
| | 68,091 |
|
Weighted average effect of common share equivalents (1) | | — |
| | — |
| | — |
| | — |
|
Total weighted average shares outstanding - diluted | | 68,753 |
| | 68,236 |
| | 68,660 |
| | 68,091 |
|
| |
(1) | The Company had net losses used to calculate earnings per share for all periods presented. Therefore, the effect of common share equivalents of 425 and 309 for the quarters ended June 30, 2015 and 2014, respectively, and 493 and 326 for the six months ended June 30, 2015 and 2014, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive. |
Pennsylvania Real Estate Investment Trust
Funds From Operations and Funds Available for Distribution
(in thousands, except per share amounts)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter Ended June 30, 2015 | | Quarter Ended June 30, 2014 | |
| Consolidated | | PREIT’s share of unconsolidated partnerships | | Total | | Consolidated | | PREIT’s share of unconsolidated partnerships | | Total | |
FUNDS FROM OPERATIONS (FFO) | | | | | | | | | | | | |
Real estate revenue | $ | 100,882 |
| | $ | 12,093 |
| | $ | 112,975 |
| | $ | 106,145 |
| | $ | 10,087 |
| | $ | 116,232 |
| |
Property operating expenses | (42,014 | ) | | (4,470 | ) | | (46,484 | ) | | (44,364 | ) | | (2,861 | ) | | (47,225 | ) | |
NET OPERATING INCOME | 58,868 |
| | 7,623 |
| | 66,491 |
| | 61,781 |
| | 7,226 |
| | 69,007 |
| |
General and administrative expenses | (9,126 | ) | | — |
| | (9,126 | ) | | (8,774 | ) | | — |
| | (8,774 | ) | |
Provision for employee separation expense | — |
| | — |
| | — |
| | (4,877 | ) | | — |
| | (4,877 | ) | |
Other income | 811 |
| | — |
| | 811 |
| | 680 |
| | — |
| | 680 |
| |
Acquisition costs and other expenses | (817 | ) | | (14 | ) | | (831 | ) | | (960 | ) | | — |
| | (960 | ) | |
Interest expense, net | (21,126 | ) | | (2,566 | ) | | (23,692 | ) | | (21,550 | ) | | (2,718 | ) | | (24,268 | ) | |
Depreciation on non real estate assets | (380 | ) | | — |
| | (380 | ) | | (369 | ) | | — |
| | (369 | ) | |
Preferred share dividends | (3,962 | ) | | — |
| | (3,962 | ) | | (3,962 | ) | | — |
| | (3,962 | ) | |
FFO | 24,268 |
| | 5,043 |
| | 29,311 |
| | 21,969 |
| | 4,508 |
| | 26,477 |
| |
Depreciation on real estate assets | (36,261 | ) | | (3,011 | ) | | (39,272 | ) | | (36,766 | ) | | (1,724 | ) | | (38,490 | ) | |
Equity in income of partnerships | 2,032 |
| | (2,032 | ) | | — |
| | 2,784 |
| | (2,784 | ) | | — |
| |
Impairment of assets | (28,667 | ) | | — |
| | (28,667 | ) | | (16,098 | ) | | — |
| | (16,098 | ) | |
Gain on sale of interest in real estate | — |
| | — |
| | — |
| | 99 |
| | — |
| | 99 |
| |
Preferred share dividends | 3,962 |
| | — |
| | 3,962 |
| | 3,962 |
| | — |
| | 3,962 |
| |
Net loss | $ | (34,666 | ) | | $ | — |
| | $ | (34,666 | ) | | $ | (24,050 | ) | | $ | — |
| | $ | (24,050 | ) | |
FFO | $ | 24,268 |
| | $ | 5,043 |
| | $ | 29,311 |
| | $ | 21,969 |
| | $ | 4,508 |
| | $ | 26,477 |
| |
Mortgage prepayment penalty and accelerated amortization of financing costs | 1,030 |
| | — |
| | 1,030 |
| | — |
| | — |
| | — |
| |
Acquisition costs | 138 |
| | — |
| | 138 |
| | 554 |
| | — |
| | 554 |
| |
Provision for employee separation expenses | — |
| | — |
| | — |
| | 4,877 |
| | — |
| | 4,877 |
| |
Loss on hedge ineffectiveness | — |
| | — |
| | — |
| | 1,238 |
| | — |
| | 1,238 |
| |
FFO AS ADJUSTED | $ | 25,436 |
| | $ | 5,043 |
| | $ | 30,479 |
| | $ | 28,638 |
| | $ | 4,508 |
| | $ | 33,146 |
| |
FUNDS AVAILABLE FOR DISTRIBUTION (FAD) | | | | | | | | | | | | |
FFO AS ADJUSTED | $ | 25,436 |
| | $ | 5,043 |
| | $ | 30,479 |
| | $ | 28,638 |
| | $ | 4,508 |
| | $ | 33,146 |
| |
Adjustments: | | | | | | | | | | | | |
Straight line rent | (468 | ) | | (73 | ) | | (541 | ) | | (305 | ) | | 3 |
| | (302 | ) | |
Recurring capital expenditures | (2,339 | ) | | (175 | ) | | (2,514 | ) | | (2,819 | ) | | (19 | ) | | (2,838 | ) | |
Tenant allowances | (6,879 | ) | | (105 | ) | | (6,984 | ) | | (8,689 | ) | | (79 | ) | | (8,768 | ) | |
Capitalized leasing costs | (1,573 | ) | | — |
| | (1,573 | ) | | (1,409 | ) | | — |
| | (1,409 | ) | |
Amortization of above- and below-market lease intangibles | (63 | ) | | 154 |
| | 91 |
| | (353 | ) | | (22 | ) | | (375 | ) | |
FAD | $ | 14,114 |
| | $ | 4,844 |
| | $ | 18,958 |
| | $ | 15,063 |
| | $ | 4,391 |
| | $ | 19,454 |
| |
Weighted average number of shares outstanding | | | | | 68,753 |
| | | | | | 68,236 |
| |
Weighted average effect of full conversion of OP Units | | | | | 8,357 |
| | | | | | 2,129 |
| |
Effect of common share equivalents | | | | | 425 |
| | | | | | 309 |
| |
Total weighted average shares outstanding, including OP Units | | | | | 77,535 |
| | | | | | 70,674 |
| |
FFO PER DILUTED SHARE AND OP UNIT | | | | | $ | 0.38 |
| | | | | | $ | 0.37 |
| |
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED | | | | $ | 0.39 |
| | | | | | $ | 0.47 |
| |
FAD PER DILUTED SHARE AND OP UNIT | | | | | $ | 0.24 |
| | | | | | $ | 0.28 |
| |
DIVIDEND PER COMMON SHARE | | | | | $ | 0.21 |
| | | | | | $ | 0.20 |
| |
Pennsylvania Real Estate Investment Trust
Funds From Operations and Funds Available for Distribution
(in thousands, except per share amounts)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, 2015 | | Six Months Ended June 30, 2014 | |
| Continuing Operations | | | | Continuing Operations | | | |
| Consolidated | | PREIT’s share of unconsolidated partnerships | | Total | | Consolidated | | PREIT’s share of unconsolidated partnerships | | Total | |
FUNDS FROM OPERATIONS (FFO) | | | | | | | | | | | | |
Real estate revenue | $ | 199,666 |
| | $ | 25,256 |
| | $ | 224,922 |
| | $ | 214,754 |
| | $ | 20,596 |
| | $ | 235,350 |
| |
Operating expenses | (85,165 | ) | | (9,672 | ) | | (94,837 | ) | | (96,081 | ) | | (6,396 | ) | | (102,477 | ) | |
NET OPERATING INCOME | 114,501 |
| | 15,584 |
| | 130,085 |
| | 118,673 |
| | 14,200 |
| | 132,873 |
| |
General and administrative expenses | (18,070 | ) | | — |
| | (18,070 | ) | | (17,851 | ) | | — |
| | (17,851 | ) | |
Provision for employee separation expense | — |
| | — |
| | — |
| | (4,877 | ) | | — |
| | (4,877 | ) | |
Other income | 2,084 |
| | — |
| | 2,084 |
| | 1,458 |
| | — |
| | 1,458 |
| |
Project costs and other expenses | (5,269 | ) | | (41 | ) | | (5,310 | ) | | (2,606 | ) | | — |
| | (2,606 | ) | |
Interest expense, net | (41,271 | ) | | (5,206 | ) | | (46,477 | ) | | (41,720 | ) | | (5,448 | ) | | (47,168 | ) | |
Depreciation on non real estate assets | (758 | ) | | — |
| | (758 | ) | | (813 | ) | | — |
| | (813 | ) | |
Gain on sale of non operating real estate | 43 |
| | — |
| | 43 |
| | — |
| | — |
| | — |
| |
Dividends on preferred shares | (7,924 | ) | | — |
| | (7,924 | ) | | (7,924 | ) | | — |
| | (7,924 | ) | |
FFO | 43,336 |
| | 10,337 |
| | 53,673 |
| | 44,340 |
| | 8,752 |
| | 53,092 |
| |
Depreciation on real estate assets | (69,072 | ) | | (6,223 | ) | | (75,295 | ) | | (72,557 | ) | | (3,566 | ) | | (76,123 | ) | |
Equity in income of partnerships | 4,114 |
| | (4,114 | ) | | — |
| | 5,186 |
| | (5,186 | ) | | — |
| |
Impairment of assets | (34,907 | ) | | — |
| | (34,907 | ) | | (17,398 | ) | | — |
| | (17,398 | ) | |
Gain on sale of interest in real estate | — |
| | — |
| | — |
| | 99 |
| | — |
| | 99 |
| |
Dividends on preferred shares | 7,924 |
| | — |
| | 7,924 |
| | 7,924 |
| | — |
| | 7,924 |
| |
Net loss | $ | (48,605 | ) | | $ | — |
| | $ | (48,605 | ) | | $ | (32,406 | ) | | $ | — |
| | $ | (32,406 | ) | |
FFO | $ | 43,336 |
| | $ | 10,337 |
| | $ | 53,673 |
| | $ | 44,340 |
| | $ | 8,752 |
| | $ | 53,092 |
| |
Acquisition costs | 3,468 |
| | — |
| | 3,468 |
| | 1,941 |
| | — |
| | 1,941 |
| |
Provision for employee separation expenses | — |
| | — |
| | — |
| | 4,877 |
| | — |
| | 4,877 |
| |
Loss on hedge ineffectiveness | 512 |
| | — |
| | 512 |
| | 1,238 |
| | — |
| | 1,238 |
| |
Mortgage prepayment penalty and accelerated amortization of financing costs | 1,030 |
| | — |
| | 1,030 |
| | — |
| | — |
| | — |
| |
FFO AS ADJUSTED | $ | 48,346 |
| | $ | 10,337 |
| | $ | 58,683 |
| | $ | 52,396 |
| | $ | 8,752 |
| | $ | 61,148 |
| |
FUNDS AVAILABLE FOR DISTRIBUTION (FAD) | | | | | | | | | | | | |
FFO AS ADJUSTED | $ | 48,346 |
| | $ | 10,337 |
| | $ | 58,683 |
| | $ | 52,396 |
| | $ | 8,752 |
| | $ | 61,148 |
| |
Adjustments: | | | | | | | | | | | | |
Straight line rent | (740 | ) | | (218 | ) | | (958 | ) | | (823 | ) | | (40 | ) | | (863 | ) | |
Recurring capital expenditures | (3,420 | ) | | (203 | ) | | (3,623 | ) | | (3,312 | ) | | (29 | ) | | (3,341 | ) | |
Tenant allowances | (10,663 | ) | | (211 | ) | | (10,874 | ) | | (11,158 | ) | | (118 | ) | | (11,276 | ) | |
Capitalized leasing costs | (3,228 | ) | | — |
| | (3,228 | ) | | (2,829 | ) | | — |
| | (2,829 | ) | |
Amortization of above- and below-market lease intangibles | (143 | ) | | 148 |
| | 5 |
| | (691 | ) | | (43 | ) | | (734 | ) | |
FAD | $ | 30,152 |
| | $ | 9,853 |
| | $ | 40,005 |
| | $ | 33,583 |
| | $ | 8,522 |
| | $ | 42,105 |
| |
Weighted average number of shares outstanding | | | | | 68,660 |
| | | | | | 68,091 |
| |
Weighted average effect of full conversion of OP Units | | | | | 5,291 |
| | | | | | 2,129 |
| |
Effect of common share equivalents | | | | | 493 |
| | | | | | 326 |
| |
Total weighted average shares outstanding, including OP Units | | | | | 74,444 |
| | | | | | 70,546 |
| |
FFO PER DILUTED SHARE AND OP UNIT | | | | | $ | 0.72 |
| | | | | | $ | 0.75 |
| |
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED | | | | $ | 0.79 |
| | | | | | $ | 0.87 |
| |
FAD PER DILUTED SHARE AND OP UNIT | | | | | $ | 0.54 |
| | | | | | $ | 0.60 |
| |
DIVIDEND PER COMMON SHARE | | | | | $ | 0.42 |
| | | | | | $ | 0.40 |
| |
PAYOUT RATIOS | | | | | | | | | | | | |
Payout ratio of FFO | | | | | 45.9 | % | (1) | | | | | 43.5 | % | (2) |
Payout ratio of FFO as adjusted | | | | | 42.9 | % | (1) | | | | | 41.1 | % | (2) |
Payout ratio of FAD | | | | | 78.1 | % | (1) | | | | | 69.1 | % | (2) |
| |
(1) | Twelve months ended June 30, 2015. |
| |
(2) | Twelve months ended June 30, 2014. |
Pennsylvania Real Estate Investment Trust
2015 Leasing Activity Summary
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Avg Gross Rent psf | | Change in Gross Rent psf | | Annualized Tenant Improvements psf (2) |
| | Number | | GLA | | Previous | | New(1) | | Dollar | | % | |
New Leases - non anchor tenants less than 10k sf: (3) | | | | | | | | | | | | |
1st Quarter | | 23 |
| | 43,481 |
| | N/A |
| | $ | 70.36 |
| | $ | 70.36 |
| | N/A | | $ | 5.73 |
|
2nd Quarter | | 44 |
| | 94,220 |
| | N/A |
| | 56.36 |
| | 56.36 |
| | N/A | | 10.57 |
|
Total/Average | | 67 |
| | 137,701 |
| | N/A |
| | $ | 60.78 |
| | $ | 60.78 |
| | N/A | | $ | 9.04 |
|
| | | | | | | | | | | | | | |
New Leases - non anchor tenants 10k sf or greater: (3) | | | | | | | | | | | | |
1st Quarter | | 1 |
| | 13,000 |
| | N/A |
| | $ | 22.49 |
| | $ | 22.49 |
| | N/A | | $ | 12.64 |
|
2nd Quarter | | 2 |
| | 23,785 |
| | N/A |
| | 15.41 |
| | 15.41 |
| | N/A | | 1.44 |
|
Total/Average | | 3 |
| | 36,785 |
| | N/A |
| | $ | 17.91 |
| | $ | 17.91 |
| | N/A | | $ | 5.40 |
|
| | | | | | | | | | | | | | |
Renewals - non anchor tenants less than 10k sf : (4) | | | | | | | | | | | | |
1st Quarter | | 60 |
| | 137,227 |
| | $ | 45.25 |
| | $ | 45.95 |
| | $ | 0.70 |
| | 1.5 | % | | $ | 0.18 |
|
2nd Quarter | | 78 |
| | 255,466 |
| | 37.64 |
| | 39.39 |
| | 1.75 |
| | 4.6 | % | | — |
|
Total/Average | | 138 |
| | 392,693 |
| | $ | 40.30 |
| | $ | 41.68 |
| | $ | 1.38 |
| | 3.4 | % | | $ | 0.06 |
|
| | | | | | | | | | | | | | |
Renewals - non anchor tenants 10k sf or greater: (4) | | | | | | | | | | | | |
1st Quarter | | 1 |
| | 12,608 |
| | $ | 13.00 |
| | $ | 13.50 |
| | $ | 0.50 |
| | 3.8 | % | | $ | — |
|
2nd Quarter | | 9 |
| | 253,119 |
| | 23.39 |
| | 24.38 |
| | 0.99 |
| | 4.2 | % | | — |
|
Total/Average | | 10 |
| | 265,727 |
| | $ | 22.90 |
| | $ | 23.86 |
| | $ | 0.97 |
| | 4.2 | % | | $ | — |
|
| | | | | | | | | | | | | | |
New Leases - Anchor Tenants | | | | | | | | | | | | | | |
1st Quarter | | — |
| | — |
| | N/A |
| | $ | — |
| | $ | — |
| | N/A | | $ | — |
|
2nd Quarter | | 1 |
| | 48,208 |
| | N/A |
| | 5.23 |
| | 5.23 |
| | N/A | | — |
|
Total/Average | | 1 |
| | 48,208 |
| | N/A |
| | $ | 5.23 |
| | $ | 5.23 |
| | N/A | | $ | — |
|
| | | | | | | | | | | | | | |
Renewals - Anchor Tenants (4) | | | | | | | | | | | | | | |
1st Quarter | | — |
| | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | — | % | | $ | — |
|
2nd Quarter | | 8 |
| | 963,256 |
| | 4.59 |
| | 4.59 |
| | — |
| | — | % | | — |
|
Total/Average | | 8 |
| | 963,256 |
| | $ | 4.59 |
| | $ | 4.59 |
| | $ | — |
| | — | % | | $ | — |
|
| |
(1) | New rent is the initial amount payable upon rent commencement. In certain cases, a lower rent may be payable until certain conditions in the lease are satisfied. |
| |
(2) | These leasing costs are presented as annualized costs per square foot and are spread uniformly over the initial lease term. |
| |
(3) | This category includes newly constructed and recommissioned space. |
| |
(4) | This category includes leases for reconfigured spaces and lease extensions. |
Pennsylvania Real Estate Investment Trust
Summarized Sales and Rent Per Square Foot and Occupancy Percentages
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, 2015 | | June 30, 2014 | | Change |
| % Rolling 12 Mo. NOI | | Avg. Comp Sales | | Avg. Gross Rent(1)(2) | | Occ. Cost | | Occupancy | | % Rolling 12 Mo. NOI | | Avg. Comp Sales | | Avg. Gross Rent(1)(2) | | Occ. Cost | | Occupancy | | Avg. Comp Sales | | Avg. Gross Rent(1)(2) | | Occ. Cost | | Occupancy |
| | | | | Total | | Non-Anchor | | | | | | Total | | Non-Anchor | | | | | Total | | Non-Anchor |
| | | | | | | | | | | | | | | | |
Premier Malls | 35.0 | % | | $ | 569 |
| | $ | 71.26 |
| | 12.9 | % | | 96.2 | % | | 94.3 | % | | 33.4 | % | | $ | 520 |
| | $ | 69.10 |
| | 13.7 | % | | 96.9 | % | | 95.4 | % | | 9.4 | % | | 3.1 | % | | (0.8 | )% | | (0.7 | )% | | (1.1 | )% |
Core Growth Malls | 46.1 | % | | $ | 374 |
| | $ | 44.84 |
| | 12.9 | % | | 93.8 | % | | 90.0 | % | | 42.9 | % | | $ | 350 |
| | $ | 42.81 |
| | 13.0 | % | | 95.2 | % | | 90.6 | % | | 6.9 | % | | 4.7 | % | | (0.1 | )% | | (1.4 | )% | | (0.6 | )% |
Opportunistic Malls | 5.0 | % | | $ | 280 |
| | $ | 28.39 |
| | 11.5 | % | | 88.0 | % | | 84.1 | % | | 4.9 | % | | $ | 254 |
| | $ | 26.84 |
| | 11.6 | % | | 89.4 | % | | 87.0 | % | | 10.2 | % | | 5.8 | % | | (0.1 | )% | | (1.4 | )% | | (2.9 | )% |
Non Core Malls | 5.8 | % | | $ | 293 |
| | $ | 28.63 |
| | 11.1 | % | | 94.0 | % | | 87.0 | % | | 5.5 | % | | $ | 272 |
| | $ | 27.79 |
| | 11.4 | % | | 92.5 | % | | 83.7 | % | | 7.7 | % | | 3.0 | % | | (0.3 | )% | | 1.5 | % | | 3.3 | % |
Total Same Store Malls | 91.9 | % | | $ | 418 |
| | $ | 48.90 |
| | 12.7 | % | | 93.7 | % | | 90.1 | % | | 86.7 | % | | $ | 383 |
| | $ | 46.88 |
| | 13.1 | % | | 94.6 | % | | 90.7 | % | | 9.1 | % | | 4.3 | % | | (0.4 | )% | | (0.9 | )% | | (0.6 | )% |
Non Same Store Malls (3) | 3.3 | % | | N/A | | $ | 56.14 |
| | N/A | | 80.6% | | 73.8% | | 5.0 | % | | $ | 367 |
| | $ | 51.45 |
| | 14.9 | % | | 76.5 | % | | 76.9 | % | | N/A | | N/A |
| | N/A | | N/A | | N/A |
Total Malls | 95.2 | % | | $ | 418 |
| | $ | 49.18 |
| | 12.7 | % | | 93.1 | % | | 89.1 | % | | 91.7 | % | | $ | 383 |
| | $ | 47.01 |
| | 13.1 | % | | 93.3 | % | | 90.1 | % | | 9.1 | % | | 4.6 | % | | (0.4 | )% | | (0.2 | )% | | (1.0 | )% |
Other Retail Properties | 3.7 | % | | N/A | | $ | 18.79 |
| | N/A | | 99.5 | % | | 99.5 | % | | 3.3 | % | | N/A | | $ | 18.69 |
| | N/A | | 95.8 | % | | 95.4 | % | | N/A | | 0.6 | % | | N/A | | 3.7 | % | | 4.1 | % |
Total Retail Properties | 98.9 | % | | N/A | | $ | 44.18 |
| | N/A | | 93.4 | % | | 90.0 | % | | 95.0 | % | | N/A | | $ | 42.66 |
| | N/A | | 93.5 | % | | 90.6 | % | | N/A | | 3.6 | % | | N/A | | (0.1 | )% | | (0.6 | )% |
Sold Properties (4) | 0.9 | % | | N/A | | N/A |
| | N/A | | N/A | | N/A | | 2.8 | % | | $ | 255 |
| | $ | 23.33 |
| | N/A | | 91.0 | % | | 79.3 | % | | N/A | | N/A |
| | N/A | | N/A | | N/A |
Other Properties | 0.2 | % | | N/A | | N/A |
| | N/A | | N/A | | N/A | | 2.2 | % | | N/A | | N/A |
| | N/A | | N/A |
| | N/A |
| | N/A | | N/A |
| | N/A | | N/A | | N/A |
Total Portfolio | 100.0 | % | | $ | 418 |
| | $ | 44.18 |
| | | | 93.4 | % | | 90.0 | % | | 100.0 | % | | $ | 378 |
| | $ | 41.38 |
| | | | 93.3 | % | | 90.0 | % | | 10.6 | % | | 6.8 | % | | | | 0.1 | % | | — | % |
| |
(1) | Average gross rent for malls includes all non-anchor space owned by the Company and leased to tenants that occupy individual spaces of 10,000 square feet or less. Average gross rent for other retail properties includes all non-anchor space owned by the Company regardless of size. |
| |
(2) | Average gross rent for mall tenants greater than 10,000 sf was $19.17 per square foot as of June 30, 2015 and $18.18 per square foot as of June 30, 2014. |
| |
(3) | Operating metrics for The Gallery at Market East as of June 30, 2015 are excluded because the property is under redevelopment. |
| |
(4) | Sold properties include Nittany Mall, North Hanover Mall, Springfield Park and Whitehall Mall. Average comp sales information as of June 30, 2014 includes Nittany Mall and North Hanover Mall. |
Pennsylvania Real Estate Investment Trust
Mall Occupancy Percentage and Sales Per Square Foot
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | June 30, 2015 | | June 30, 2014 | | Change |
| | Avg Comp Sales (1) | | Total Occ % | | Non Anchor Occup. % | | Avg Comp Sales(1) | | Total Occ % | | Non Anchor Occup. % | | Avg Comp Sales (1) | | Total Occ % | | Non Anchor Occup. % |
Premier Malls | | | | | | | | | | | | | | | | | | |
Cherry Hill Mall | | $ | 659 |
| | 93.4 | % | | 92.1 | % | | $ | 627 |
| | 95.1 | % | | 94.1 | % | | 5.1 | % | | (1.7 | )% | | (2.0 | )% |
Willow Grove Park | | 569 |
| | 97.2 | % | | 94.4 | % | | 430 |
| | 96.2 | % | | 92.2 | % | | 32.3 | % | | 1.0 | % | | 2.2 | % |
Lehigh Valley Mall | | 568 |
| | 95.6 | % | | 92.7 | % | | 536 |
| | 97.6 | % | | 96.1 | % | | 6.0 | % | | (2.0 | )% | | (3.4 | )% |
Woodland Mall | | 563 |
| | 98.4 | % | | 98.4 | % | | 519 |
| | 97.7 | % | | 97.7 | % | | 8.5 | % | | 0.7 | % | | 0.7 | % |
Jacksonville Mall | | 470 |
| | 96.6 | % | | 93.4 | % | | 463 |
| | 97.4 | % | | 95.0 | % | | 1.5 | % | | (0.8 | )% | | (1.6 | )% |
Dartmouth Mall | | 426 |
| | 98.2 | % | | 97.1 | % | | 423 |
| | 98.6 | % | | 97.7 | % | | 0.7 | % | | (0.4 | )% | | (0.6 | )% |
Premier Malls Subtotal | | $ | 569 |
| | 96.2 | % | | 94.3 | % | | $ | 520 |
| | 96.9 | % | | 95.4 | % | | 9.4 | % | | (0.7 | )% | | (1.1 | )% |
Core Growth Malls | | | | | | | | | | | | | | | | | | |
The Mall at Prince Georges | | $ | 450 |
| | 98.2 | % | | 96.3 | % | | $ | 417 |
| | 97.4 | % | | 94.6 | % | | 7.9 | % | | 0.8 | % | | 1.7 | % |
Viewmont Mall | | 419 |
| | 97.4 | % | | 93.3 | % | | 382 |
| | 93.9 | % | | 84.1 | % | | 9.7 | % | | 3.5 | % | | 9.2 | % |
Patrick Henry Mall | | 410 |
| | 93.7 | % | | 90.8 | % | | 383 |
| | 94.0 | % | | 91.3 | % | | 7.0 | % | | (0.3 | )% | | (0.5 | )% |
Valley View Mall | | 409 |
| | 92.9 | % | | 90.4 | % | | 370 |
| | 95.1 | % | | 93.0 | % | | 10.5 | % | | (2.2 | )% | | (2.6 | )% |
Springfield Mall | | 402 |
| | 93.4 | % | | 93.4 | % | | 388 |
| | 95.7 | % | | 95.7 | % | | 3.6 | % | | (2.3 | )% | | (2.3 | )% |
Valley Mall | | 387 |
| | 94.7 | % | | 90.9 | % | | 358 |
| | 96.1 | % | | 93.3 | % | | 8.1 | % | | (1.4 | )% | | (2.4 | )% |
Capital City Mall | | 386 |
| | 96.5 | % | | 93.6 | % | | 371 |
| | 97.5 | % | | 95.7 | % | | 4.0 | % | | (1.0 | )% | | (2.1 | )% |
Wyoming Valley Mall | | 386 |
| | 94.0 | % | | 82.8 | % | | 390 |
| | 94.8 | % | | 85.0 | % | | (1.0 | )% | | (0.8 | )% | | (2.2 | )% |
Crossroads Mall | | 385 |
| | 94.9 | % | | 88.9 | % | | 330 |
| | 98.3 | % | | 96.3 | % | | 16.7 | % | | (3.4 | )% | | (7.4 | )% |
Francis Scott Key Mall | | 364 |
| | 96.9 | % | | 95.1 | % | | 349 |
| | 96.8 | % | | 94.9 | % | | 4.3 | % | | 0.1 | % | | 0.2 | % |
Magnolia Mall | | 363 |
| | 99.2 | % | | 98.3 | % | | 348 |
| | 99.2 | % | | 98.2 | % | | 4.3 | % | | — | % | | 0.1 | % |
Moorestown Mall | | 361 |
| | 92.3 | % | | 82.7 | % | | 344 |
| | 89.4 | % | | 76.5 | % | | 4.9 | % | | 2.9 | % | | 6.2 | % |
Exton Square Mall | | 328 |
| | 78.5 | % | | 84.8 | % | | 304 |
| | 94.0 | % | | 86.9 | % | | 7.9 | % | | (15.5 | )% | | (2.1 | )% |
Cumberland Mall | | 328 |
| | 90.7 | % | | 84.7 | % | | 298 |
| | 93.2 | % | | 88.8 | % | | 10.1 | % | | (2.5 | )% | | (4.1 | )% |
Plymouth Meeting Mall | | 326 |
| | 93.4 | % | | 89.9 | % | | 307 |
| | 91.5 | % | | 87.0 | % | | 6.2 | % | | 1.9 | % | | 2.9 | % |
Logan Valley Mall | | 319 |
| | 95.1 | % | | 88.4 | % | | 294 |
| | 96.1 | % | | 90.6 | % | | 8.5 | % | | (1.0 | )% | | (2.2 | )% |
Gadsden Mall | | 310 |
| | 95.1 | % | | 88.0 | % | | 288 |
| | 98.0 | % | | 95.0 | % | | 7.6 | % | | (2.9 | )% | | (7.0 | )% |
Core Growth Malls Subtotal | | $ | 374 |
| | 93.8 | % | | 90.0 | % | | $ | 350 |
| | 95.2 | % | | 90.6 | % | | 6.9 | % | | (1.4 | )% | | (0.6 | )% |
Opportunistic Malls | | | | | | | | | | | | | | | | | | |
Wiregrass Commons Mall | | $ | 297 |
| | 88.4 | % | | 83.2 | % | | $ | 260 |
| | 90.1 | % | | 85.5 | % | | 14.2 | % | | (1.7 | )% | | (2.3 | )% |
Beaver Valley Mall | | 292 |
| | 94.5 | % | | 88.0 | % | | 271 |
| | 95.7 | % | | 90.6 | % | | 7.7 | % | | (1.2 | )% | | (2.6 | )% |
New River Valley Mall | | 279 |
| | 84.7 | % | | 91.7 | % | | 264 |
| | 86.8 | % | | 98.4 | % | | 5.7 | % | | (2.1 | )% | | (6.7 | )% |
Voorhees Town Center | | 241 |
| | 72.6 | % | | 72.2 | % | | 206 |
| | 73.1 | % | | 72.7 | % | | 17.0 | % | | (0.5 | )% | | (0.5 | )% |
Opportunistic Malls Subtotal | | $ | 280 |
| | 88.0 | % | | 84.1 | % | | $ | 254 |
| | 89.4 | % | | 87.0 | % | | 10.2 | % | | (1.4 | )% | | (2.9 | )% |
| | | | | | | | | | | | | | | | | | |
Malls Excluding Non Core and Redevelopment Subtotal | | $ | 429 |
| | 93.7 | % | | 90.5 | % | | $ | 393 |
| | 94.9 | % | | 91.5 | % | | 9.2 | % | | (1.2 | )% | | (1.0 | )% |
Non Core Malls | | | | | | | | | | | | | | | | | | |
Washington Crown Center | | $ | 334 |
| | 95.4 | % | | 91.4 | % | | $ | 310 |
| | 82.7 | % | | 67.9 | % | | 7.7 | % | | 12.7 | % | | 23.5 | % |
Palmer Park Mall | | 329 |
| | 93.2 | % | | 78.3 | % | | 297 |
| | 95.6 | % | | 86.0 | % | | 10.8 | % | | (2.4 | )% | | (7.7 | )% |
Uniontown Mall | | 282 |
| | 93.1 | % | | 84.5 | % | | 266 |
| | 94.0 | % | | 86.5 | % | | 6.0 | % | | (0.9 | )% | | (2.0 | )% |
Lycoming Mall | | 264 |
| | 94.4 | % | | 89.1 | % | | 247 |
| | 96.4 | % | | 93.0 | % | | 6.9 | % | | (2.0 | )% | | (3.9 | )% |
Non Core Malls Subtotal | | $ | 293 |
| | 94.0 | % | | 87.0 | % | | $ | 272 |
| | 92.5 | % | | 83.7 | % | | 7.7 | % | | 1.5 | % | | 3.3 | % |
Same Store Malls weighted average | | $ | 418 |
| | 93.7 | % | | 90.1 | % | | $ | 383 |
| | 94.6 | % | | 90.7 | % | | 9.1 | % | | (0.9 | )% | | (0.6 | )% |
Non Same Store Redevelopment Properties | | | | | | | | | | | | | | | | | | |
The Gallery at Market East | | N/A |
| | N/A |
| | N/A |
| | $ | 367 |
| | 76.5 | % | | 76.9 | % | | N/A |
| | N/A |
| | N/A |
|
Springfield Town Center | | N/A |
| | 80.6 | % | | 73.8 | % | | N/A |
| | N/A |
| | N/A |
| | N/A |
| | N/A |
| | N/A |
|
Total Continuing Malls weighted average | | $ | 418 |
| | 93.1 | % | | 89.1 | % | | $ | 383 |
| | 93.3 | % | | 90.1 | % | | 9.1 | % | | (0.2 | )% | | (1.0 | )% |
Sold Properties | | N/A |
| | N/A |
| | N/A |
| | $ | 255 |
| | 88.2 | % | | 71.1 | % | | N/A |
| | N/A |
| | N/A |
|
Total Reported weighted average | | $ | 418 |
| | 93.1 | % | | 89.1 | % | | $ | 378 |
| | 93.1 | % | | 89.5 | % | | 10.6 | % | | — | % | | (0.4 | )% |
| |
(1) | 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. |
| |
(2) | Average comp sales and total and non anchor occupancy for The Gallery at Market East, and average comp sales for Springfield Town Center as of June 30, 2015 are excluded because the properties are under redevelopment. |
Pennsylvania Real Estate Investment Trust
Top Twenty Tenants
|
| | | | | | |
Tenant | Brands | Total Number of Locations (1) | | Percentage of Annualized Gross Rent (2) |
L Brands, Inc. | Bath & Body Works, Henri Bendel, Pink, Victoria's Secret | 66 |
| | 3.7 | % |
Signet Jewelers Limited | J.B. Robinson Jewelers, Kay Jewelers, LeRoy's, Marks and Morgan Jewelers, Piercing Pagoda, Plumb Gold, Shaw's Jewelers, Silver & Gold Connection, Totally Pagoda, Zale's Jewelers | 97 |
| | 3.2 | % |
Foot Locker, Inc. | Champs, Foot Locker, Footaction, House of Hoops by Foot Locker, Kids Foot Locker, Lady Foot Locker, Nike Yardline | 57 |
| | 2.9 | % |
Gap, Inc. | Banana Republic, Gap/Gap Kids/Baby Gap, Old Navy | 34 |
| | 2.7 | % |
American Eagle Outfitters, Inc. | Aerie, American Eagle Outfitters | 34 |
| | 2.6 | % |
J.C. Penney Company, Inc. (3) | JC Penney | 25 |
| | 2.6 | % |
Dick's Sporting Goods, Inc. | Dick's Sporting Goods | 11 |
| | 1.7 | % |
Macy's, Inc. | Bloomingdale's, Macy's | 24 |
| | 1.6 | % |
Sears Holding Corporation | Kmart, Sears | 21 |
| | 1.6 | % |
Genesco, Inc | Hat Shack, Hat World, Johnston & Murphy, Journey's, Journey's Kidz, Lids, Lids Locker Room, Shi by Journey's, Underground by Journey's | 60 |
| | 1.5 | % |
Ascena Retail Group, Inc. | Dress Barn, Justice, Lane Bryant, Maurices | 37 |
| | 1.4 | % |
Luxottica Group S.p.A. | Lenscrafters, Pearle Vision, Sunglass Hut/Watch Station | 41 |
| | 1.4 | % |
Forever 21, Inc. | Forever 21 | 10 |
| | 1.3 | % |
Abercrombie & Fitch Co. | abercrombie, Abercrombie & Fitch, Hollister Co. | 17 |
| | 1.3 | % |
Boscov's Department Store | Boscov's | 8 |
| | 1.2 | % |
Advent CR Holdings, Inc. | Charlotte Russe | 18 |
| | 1.2 | % |
The Children's Place Retail Stores, Inc. | The Children's Place | 27 |
| | 1.2 | % |
Regal Entertainment Group | Regal Cinemas | 5 |
| | 1.2 | % |
Shoe Show, Inc. | Shoe Dept/Encore | 23 |
| | 1.1 | % |
The Finish Line, Inc. | Finish Line | 21 |
| | 1.0 | % |
Total Top 20 Tenants | | 636 |
| | 36.4 | % |
Total Leases | | 2,581 |
| | 100.0 | % |
| |
(1) | Excludes tenants from The Gallery at Market East and Springfield Park. |
| |
(2) | Includes PREIT’s proportionate share of tenant gross rent from partnership properties based on PREIT’s ownership percentage in the respective partnerships. |
| |
(3) | Includes a landlord owned store located at Cumberland Mall which the tenant closed in April 2015. The tenant is obligated to pay rent through July 2015. |
Pennsylvania Real Estate Investment Trust
Lease Expirations as of June 30, 2015
(dollars in thousands except psf amounts)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-Anchors (1) |
| | | | Gross Leasable Area | | Annualized Gross Rent | | |
Lease Expiration Year | | Number of Leases Expiring | | Expiring GLA (2) | | Percent of Total | | Gross Rent in Expiring Year | | PREIT’s Share of Gross Rent in Expiring Year (3) | | Percent of PREIT’s Total | | Average Expiring Gross Rent psf |
Holdover | | 194 |
| | 545,158 |
| | 5.1 | % | | $ | 19,699 |
| | $ | 19,096 |
| | 5.5 | % | | $ | 36.13 |
|
2015 | | 156 |
| | 345,251 |
| | 3.2 | % | | 14,223 |
| | 13,479 |
| | 3.9 | % | | 41.20 |
|
2016 | | 420 |
| | 1,445,165 |
| | 13.6 | % | | 53,779 |
| | 50,224 |
| | 14.5 | % | | 37.21 |
|
2017 | | 398 |
| | 1,247,456 |
| | 11.7 | % | | 48,723 |
| | 44,870 |
| | 13.0 | % | | 39.06 |
|
2018 | | 264 |
| | 1,209,645 |
| | 11.4 | % | | 42,823 |
| | 38,564 |
| | 11.1 | % | | 35.40 |
|
2019 | | 227 |
| | 1,015,156 |
| | 9.5 | % | | 35,304 |
| | 32,075 |
| | 9.3 | % | | 34.78 |
|
2020 | | 151 |
| | 1,048,013 |
| | 9.8 | % | | 28,014 |
| | 24,864 |
| | 7.2 | % | | 26.73 |
|
2021 | | 127 |
| | 617,597 |
| | 5.8 | % | | 21,492 |
| | 18,577 |
| | 5.4 | % | | 34.80 |
|
2022 | | 120 |
| | 548,216 |
| | 5.1 | % | | 21,179 |
| | 19,029 |
| | 5.5 | % | | 38.63 |
|
2023 | | 136 |
| | 786,999 |
| | 7.4 | % | | 27,767 |
| | 24,911 |
| | 7.2 | % | | 35.28 |
|
2024 | | 159 |
| | 656,130 |
| | 6.2 | % | | 29,271 |
| | 27,555 |
| | 8.0 | % | | 44.61 |
|
Thereafter | | 151 |
| | 1,191,846 |
| | 11.2 | % | | 34,151 |
| | 32,844 |
| | 9.4 | % | | 28.65 |
|
Total/Average | | 2,503 |
| | 10,656,632 |
| | 100.0 | % | | $ | 376,425 |
| | $ | 346,088 |
| | 100.0 | % | | $ | 35.32 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Anchors (1) |
| | | | Gross Leasable Area | | Annualized Gross Rent | | |
Lease Expiration Year | | Number of Leases Expiring (4) | | Expiring GLA | | Percent of Total | | Gross Rent in Expiring Year | | PREIT’s Share of Gross Rent in Expiring Year (3) | | Percent of PREIT’s Total | | Average Expiring Gross Rent psf |
2015 (5) | | 1 |
| | 51,352 |
| | 0.6 | % | | $ | 291 |
| | $ | 291 |
| | 0.8 | % | | $ | 5.67 |
|
2016 | | 15 |
| | 1,468,112 |
| | 16.7 | % | | 5,410 |
| | 5,410 |
| | 14.4 | % | | 3.69 |
|
2017 | | 9 |
| | 1,319,105 |
| | 15.0 | % | | 4,588 |
| | 4,236 |
| | 11.3 | % | | 3.48 |
|
2018 | | 11 |
| | 1,163,222 |
| | 13.3 | % | | 5,119 |
| | 5,119 |
| | 13.7 | % | | 4.40 |
|
2019 | | 17 |
| | 1,801,420 |
| | 20.6 | % | | 6,094 |
| | 6,094 |
| | 16.3 | % | | 3.38 |
|
2020 | | 12 |
| | 1,381,846 |
| | 15.8 | % | | 6,684 |
| | 6,684 |
| | 17.9 | % | | 4.84 |
|
2021 | | 4 |
| | 391,376 |
| | 4.5 | % | | 3,696 |
| | 2,507 |
| | 6.7 | % | | 9.44 |
|
2022 | | 5 |
| | 773,418 |
| | 8.8 | % | | 3,793 |
| | 3,793 |
| | 10.2 | % | | 4.90 |
|
2023 | | — |
| | — |
| | — | % | | — |
| | — |
| | — | % | | N/A |
|
2024 | | — |
| | — |
| | — | % | | — |
| | — |
| | — | % | | N/A |
|
Thereafter | | 4 |
| | 415,509 |
| | 4.7 | % | | 3,234 |
| | 3,234 |
| | 8.7 | % | | 7.78 |
|
Total/Average | | 78 |
| | 8,765,360 |
| | 100.0 | % | | $ | 38,909 |
| | $ | 37,368 |
| | 100.0 | % | | $ | 4.44 |
|
| |
(1) | Only includes owned space. Excludes The Gallery at Market East and Springfield Park. |
| |
(2) | Does not include tenants occupying space under license agreements with initial terms of less than one year. The GLA of these tenants is 422,605 square feet. |
| |
(3) | Includes PREIT’s proportionate share of tenant rent from partnership properties based on PREIT’s ownership percentage in the respective partnerships. |
| |
(4) | Accounts for all contiguous anchor space as one lease. |
| |
(5) | Includes a landlord owned store located at Cumberland Mall which the tenant closed in April 2015. The tenant is obligated to pay rent through July 2015. |
Pennsylvania Real Estate Investment Trust
Property Information as of June 30, 2015
(GLA in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | Landlord Owned Anchors | | Anchor Stores Not Owned | | Non-anchor occupied | | | | |
Properties | | State | | Ownership | | Date Acquired | | Year Built/ Last Renovated | | Nordstrom | | Macy’s | | JCPenney | | Sears | | Boscov’s | | Bon-Ton | | Other(s) | | Total | | Macy’s | | JCPenney | | Sears | | Boscov’s | | Bon-Ton | | Other(s) | | Total | | Large Format | | Small Shop | | Vacant | | Total GLA |
Premier Malls | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cherry Hill Mall | | NJ | | 100% | | 2003 | | 1961/2009 | | 138 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 138 |
| | 305 |
| | 174 |
| | — |
| | — |
| | — |
| | — |
| | 479 |
| | 229 |
| | 406 |
| | 54 |
| | 1,306 |
|
Dartmouth Mall | | MA | | 100% | | 1997 | | 1971/2000 | | — |
| | — |
| | 100 |
| | 108 |
| | — |
| | — |
| | — |
| | 208 |
| | 140 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 140 |
| | 142 |
| | 171 |
| | 9 |
| | 670 |
|
Jacksonville Mall | | NC | | 100% | | 2003 | | 1981/2008 | | — |
| | — |
| | 52 |
| | 117 |
| | — |
| | — |
| | 73 |
| | 242 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 113 |
| | 123 |
| | 17 |
| | 495 |
|
Lehigh Valley Mall | | PA | | 50% | | 1973 | | 1977/2007 | | — |
| | 212 |
| | — |
| | — |
| | 165 |
| | — |
| | — |
| | 377 |
| | — |
| | 207 |
| | — |
| | — |
| | — |
| | — |
| | 207 |
| | 180 |
| | 363 |
| | 43 |
| | 1,170 |
|
Willow Grove Park | | PA | | 100% | | 2000-03 | | 1982/2001 | | 40 |
| | 225 |
| | 125 |
| | — |
| | — |
| | — |
| | — |
| | 390 |
| | 237 |
| | — |
| | 176 |
| | — |
| | — |
| | — |
| | 413 |
| | 87 |
| | 268 |
| | 21 |
| | 1,179 |
|
Woodland Mall | | MI | | 100% | | 2005 | | 1968/1998 | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 157 |
| | 255 |
| | 313 |
| | — |
| | — |
| | — |
| | 725 |
| | 167 |
| | 270 |
| | 7 |
| | 1,169 |
|
Total Premier Malls | | | | | | 178 |
| | 437 |
| | 277 |
| | 225 |
| | 165 |
| | — |
| | 73 |
| | 1,355 |
| | 839 |
| | 636 |
| | 489 |
| | — |
| | — |
| | — |
| | 1,964 |
| | 918 |
| | 1,601 |
| | 151 |
| | 5,989 |
|
Core Growth Malls | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital City Mall | | PA | | 100% | | 2003 | | 1974/2005 | | — |
| | — |
| | 103 |
| | 101 |
| | — |
| | — |
| | — |
| | 204 |
| | 120 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 120 |
| | 35 |
| | 194 |
| | 15 |
| | 568 |
|
Crossroads Mall | | WV | | 100% | | 2003 | | 1981 | | — |
| | — |
| | 90 |
| | 87 |
| | — |
| | — |
| | 78 |
| | 255 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 74 |
| | 116 |
| | 24 |
| | 469 |
|
Cumberland Mall (1) | | NJ | | 100% | | 2005 | | 1973/2003 | | — |
| | — |
| | 51 |
| | — |
| | — |
| | — |
| | 213 |
| | 264 |
| | — |
| | — |
| | — |
| | 155 |
| | — |
| | 118 |
| | 273 |
| | 200 |
| | 143 |
| | 61 |
| | 941 |
|
Exton Square Mall | | PA | | 100% | | 2003 | | 1973/2000 | | — |
| | — |
| | — |
| | 144 |
| | 178 |
| | — |
| | — |
| | 322 |
| | 181 |
| | — |
| | 96 |
| | — |
| | — |
| | — |
| | 277 |
| | 59 |
| | 255 |
| | 174 |
| | 1,087 |
|
Francis Scott Key Mall | | MD | | 100% | | 2003 | | 1978/1991 | | — |
| | — |
| | 101 |
| | 121 |
| | — |
| | — |
| | — |
| | 222 |
| | 139 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 139 |
| | 181 |
| | 194 |
| | 19 |
| | 755 |
|
Gadsden Mall | | AL | | 100% | | 2005 | | 1974/1990 | | — |
| | — |
| | 88 |
| | 112 |
| | — |
| | — |
| | 101 |
| | 301 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 96 |
| | 85 |
| | 25 |
| | 507 |
|
Logan Valley Mall | | PA | | 100% | | 2003 | | 1960/1997 | | — |
| | 150 |
| | 146 |
| | 159 |
| | — |
| | — |
| | — |
| | 455 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 82 |
| | 209 |
| | 38 |
| | 784 |
|
Magnolia Mall | | SC | | 100% | | 1997 | | 1979/2007 | | — |
| | — |
| | 104 |
| | 91 |
| | — |
| | — |
| | 148 |
| | 343 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 99 |
| | 172 |
| | 5 |
| | 619 |
|
Moorestown Mall | | NJ | | 100% | | 2003 | | 1963/2008 | | — |
| | — |
| | — |
| | 206 |
| | 203 |
| | — |
| | — |
| | 409 |
| | 200 |
| | — |
| | — |
| | — |
| | — |
| | 121 |
| | 321 |
| | 88 |
| | 184 |
| | 57 |
| | 1,059 |
|
Patrick Henry Mall | | VA | | 100% | | 2003 | | 1988/2005 | | — |
| | — |
| | 85 |
| | — |
| | — |
| | — |
| | 50 |
| | 135 |
| | 140 |
| | — |
| | — |
| | — |
| | — |
| | 145 |
| | 285 |
| | 38 |
| | 232 |
| | 27 |
| | 717 |
|
Plymouth Meeting Mall | | PA | | 100% | | 2003 | | 1966/2009 | | — |
| | — |
| | — |
| | — |
| | 189 |
| | — |
| | 65 |
| | 254 |
| | 215 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 215 |
| | 198 |
| | 232 |
| | 48 |
| | 947 |
|
The Mall at Prince Georges | | MD | | 100% | | 1998 | | 1959/2004 | | — |
| | 196 |
| | 149 |
| | — |
| | — |
| | — |
| | 135 |
| | 480 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 155 |
| | 266 |
| | 16 |
| | 917 |
|
Springfield Mall | | PA | | 50% | | 2005 | | 1974/1997 | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 192 |
| | — |
| | — |
| | — |
| | — |
| | 196 |
| | 388 |
| | 10 |
| | 198 |
| | 15 |
| | 611 |
|
Valley Mall | | MD | | 100% | | 2003 | | 1974/1999 | | — |
| | — |
| | 157 |
| | — |
| | — |
| | 123 |
| | — |
| | 280 |
| | 120 |
| | — |
| | 123 |
| | — |
| | — |
| | — |
| | 243 |
| | 127 |
| | 226 |
| | 35 |
| | 911 |
|
Valley View Mall | | WI | | 100% | | 2003 | | 1980/2001 | | — |
| | — |
| | 96 |
| | — |
| | — |
| | — |
| | — |
| | 96 |
| | 100 |
| | — |
| | 113 |
| | — |
| | 42 |
| | — |
| | 255 |
| | 98 |
| | 153 |
| | 27 |
| | 629 |
|
Viewmont Mall | | PA | | 100% | | 2003 | | 1968/2006 | | — |
| | — |
| | 193 |
| | 193 |
| | — |
| | — |
| | — |
| | 386 |
| | 140 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 140 |
| | 76 |
| | 151 |
| | 16 |
| | 769 |
|
Wyoming Valley Mall | | PA | | 100% | | 2003 | | 1971/2006 | | — |
| | 146 |
| | 173 |
| | 118 |
| | — |
| | 155 |
| | — |
| | 592 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 91 |
| | 173 |
| | 55 |
| | 911 |
|
Core Growth Malls | | | | | | — |
| | 492 |
| | 1,536 |
| | 1,332 |
| | 570 |
| | 278 |
| | 790 |
| | 4,998 |
| | 1,547 |
| | — |
| | 332 |
| | 155 |
| | 42 |
| | 580 |
| | 2,656 |
| | 1,707 |
| | 3,183 |
| | 657 |
| | 13,201 |
|
(continued on next page)
Pennsylvania Real Estate Investment Trust
Property Information as of June 30, 2015 (continued)
(GLA in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | Landlord Owned Anchors | | Anchor Stores Not Owned | | Non-anchor occupied | | | | |
Properties | | State | | Ownership | | Date Acquired | | Year Built/ Last Renovated | | Nordstrom | | Macy’s | | JCPenney | | Sears | | Boscov’s | | Bon-Ton | | Other(s) | | Total | | Macy’s | | JCPenney | | Sears | | Boscov’s | | Bon-Ton | | Other(s) | | Total | | Large Format | | Small Shop | | Vacant | | Total GLA |
Opportunistic Malls | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beaver Valley Mall | | PA | | 100% | | 2002 | | 1970/1991 | | — |
| | — |
| | 126 |
| | 191 |
| | 194 |
| | — |
| | — |
| | 511 |
| | 205 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 205 |
| | 206 |
| | 178 |
| | 53 |
| | 1,153 |
|
New River Valley Mall | | VA | | 100% | | 2003 | | 1988/2007 | | — |
| | — |
| | 50 |
| | — |
| | — |
| | — |
| | 89 |
| | 139 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 135 |
| | 119 |
| | 71 |
| | 464 |
|
Voorhees Town Center | | NJ | | 100% | | 2003 | | 1970/2007 | | — |
| | — |
| | — |
| | — |
| | 4 |
| | — |
| | — |
| | 4 |
| | 224 |
| | — |
| | — |
| | 173 |
| | — |
| | 24 |
| | 421 |
| | 73 |
| | 146 |
| | 84 |
| | 728 |
|
Wiregrass Commons Mall | | AL | | 100% | | 2003 | | 1986/2008 | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 95 |
| | 95 |
| | — |
| | 84 |
| | — |
| | — |
| | — |
| | 248 |
| | 332 |
| | 10 |
| | 163 |
| | 35 |
| | 635 |
|
Opportunistic Malls | | | | | | — |
| | — |
| | 176 |
| | 191 |
| | 198 |
| | — |
| | 184 |
| | 749 |
| | 429 |
| | 84 |
| | — |
| | 173 |
| | — |
| | 272 |
| | 958 |
| | 424 |
| | 606 |
| | 243 |
| | 2,980 |
|
Non Core Malls | | | | | | | | | | | | | | | | �� | | | | | | | | | | | | | | | | | | | | | | | | | | |
Lycoming Mall | | PA | | 100% | | 2003 | | 1978/2007 | | — |
| | — |
| | 62 |
| | 130 |
| | — |
| | 60 |
| | 81 |
| | 333 |
| | 120 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 120 |
| | 162 |
| | 153 |
| | 39 |
| | 807 |
|
Palmer Park Mall | | PA | | 100% | | 1972/2003 | | 1972/1998 | | — |
| | — |
| | — |
| | — |
| | 192 |
| | 122 |
| | — |
| | 314 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 113 |
| | 31 |
| | 458 |
|
Uniontown Mall | | PA | | 100% | | 2003 | | 1972/1990 | | — |
| | — |
| | 63 |
| | 100 |
| | — |
| | 80 |
| | 148 |
| | 391 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 102 |
| | 159 |
| | 48 |
| | 700 |
|
Washington Crown Center | | PA | | 100% | | 2003 | | 1969/1999 | | — |
| | — |
| | — |
| | 83 |
| | — |
| | 78 |
| | 84 |
| | 245 |
| | 140 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 140 |
| | 141 |
| | 122 |
| | 25 |
| | 673 |
|
Non Core Malls | | | | | | — |
| | — |
| | 125 |
| | 313 |
| | 192 |
| | 340 |
| | 313 |
| | 1,283 |
| | 260 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 260 |
| | 405 |
| | 547 |
| | 143 |
| | 2,638 |
|
Other Retail Properties | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Street Level Retail (2 properties) | | PA | | 100% | | 2014 | | 1910/1960 | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 38 |
| | 30 |
| | 6 |
| | 74 |
|
Metroplex Shopping Center | | PA | | 50% | | 1999 | | 2001 | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 67 |
| | 67 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 301 |
| | 301 |
| | 354 |
| | 56 |
| | — |
| | 778 |
|
The Court at Oxford Valley | | PA | | 50% | | 1997 | | 1996 | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 60 |
| | 60 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 247 |
| | 247 |
| | 343 |
| | 54 |
| | 1 |
| | 705 |
|
Red Rose Commons | | PA | | 50% | | 1998 | | 1998 | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 200 |
| | 200 |
| | 248 |
| | 15 |
| | — |
| | 463 |
|
Other Retail Properties | | | | | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 127 |
| | 127 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 748 |
| | 748 |
| | 983 |
| | 155 |
| | 7 |
| | 2,020 |
|
Non Same Store Property | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Springfield Town Center | | VA | | 100 | % | | 2015 | | 1974/2015 | | — |
| | 252 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 252 |
| | — |
| | 209 |
| | — |
| | — |
| | — |
| | 181 |
| | 390 |
| | 266 |
| | 266 |
| | 189 |
| | 1,363 |
|
Portfolio Totals | | | | | | 178 |
| | 1,181 |
| | 2,114 |
| | 2,061 |
| | 1,125 |
| | 618 |
| | 1,487 |
| | 8,764 |
| | 3,075 |
| | 929 |
| | 821 |
| | 328 |
| | 42 |
| | 1,781 |
| | 6,976 |
| | 4,703 |
| | 6,358 |
| | 1,390 |
| | 28,191 |
|
| |
(1) | JCPenney closed this landlord owned store in April 2015. The tenant is obligated to pay rent through July 2015. |
Pennsylvania Real Estate Investment Trust
Department Store Lease Expirations as of June 30, 2015
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Department Store Tenants |
Properties | | Belk | | Bon-Ton | | Boscov’s | | Burlington Coat Factory | | Dillard’s | | JCPenney | | Kohl’s | | Lord & Taylor | | Macy’s | | Nordstrom | | Sears | | Target |
Premier Malls | | | | | | | | | | | | | | | | | | | | | | | | |
Cherry Hill Mall | | — | | — | | — | | — | | — | | (1) | | — | | — | | (1) | | 2025 | | — | | — |
Dartmouth Mall | | — | | — | | — | | — | | — | | 2019 | | — | | — | | (1) | | — | | 2016 | | — |
Jacksonville Mall | | 2016 | | — | | — | | — | | — | | 2020 | | — | | — | | — | | — | | 2016 | | — |
Lehigh Valley Mall | | — | | — | | 2017 | | — | | — | | (1) | | — | | — | | 2017 | | — | | — | | — |
Willow Grove Park (2) | | — | | — | | — | | — | | — | | 2032 | | — | | — | | 2022, (1) | | 2022 | | (1) | | — |
Woodland Mall | | — | | — | | — | | — | | — | | (1) | | (1) | | — | | (1) | | — | | (1) | | — |
| | | | | | | | | | | | | | | | | | | | | | | | |
Core Growth Malls | | | | | | | | | | | | | | | | | | | | | | | | |
Capital City Mall | | — | | — | | — | | — | | — | | 2020 | | — | | — | | (1) | | — | | 2019 | | — |
Crossroads Mall | | 2019 | | — | | — | | — | | — | | 2016 | | — | | — | | — | | — | | 2016 | | — |
Cumberland Mall (3) | | — | | — | | (1) | | 2019 | | — | | 2015 | | — | | — | | — | | — | | — | | — |
Exton Square Mall (4) | | — | | — | | 2019 | | — | | — | | — | | — | | — | | (1) | | — | | 2019, (1) | | — |
Francis Scott Key Mall | | — | | — | | — | | — | | — | | 2016 | | — | | — | | (1) | | — | | 2018 | | — |
Gadsden Mall | | 2019 | | — | | — | | — | | — | | 2028 | | — | | — | | — | | — | | 2019 | | — |
Logan Valley Mall | | — | | — | | — | | — | | — | | 2017 | | — | | — | | 2020 | | — | | 2016 | | — |
Magnolia Mall | | 2021 | | — | | — | | — | | — | | 2017 | | — | | — | | — | | — | | 2017 | | — |
Moorestown Mall | | — | | — | | 2020 | | — | | — | | — | | — | | (1) | | (1) | | — | | 2022 | | — |
Patrick Henry Mall | | — | | — | | — | | — | | (1) | | 2020 | | — | | — | | (1) | | — | | — | | — |
Plymouth Meeting Mall | | — | | — | | 2016 | | — | | — | | — | | — | | — | | (1) | | — | | — | | — |
The Mall at Prince Georges | | — | | — | | — | | — | | — | | 2021 | | — | | — | | 2018 | | — | | — | | 2019 |
Springfield Mall | | — | | — | | — | | — | | — | | — | | — | | — | | (1) | | — | | — | | (1) |
Valley Mall | | — | | 2019 | | — | | — | | — | | 2019 | | — | | — | | (1) | | — | | (1) | | — |
Valley View Mall | | — | | (1) | | — | | — | | — | | 2020 | | — | | — | | (1) | | — | | (1) | | — |
Viewmont Mall | | — | | — | | — | | — | | — | | 2020 | | — | | — | | (1) | | — | | 2020 | | — |
Wyoming Valley Mall | | — | | 2017 | | — | | — | | — | | 2017 | | — | | — | | 2017 | | — | | 2016 | | — |
(continued on next page)
Pennsylvania Real Estate Investment Trust
Department Store Lease Expirations as of June 30, 2015 (continued)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Department Store Tenants |
Properties | | Belk | | Bon-Ton | | Boscov’s | | Burlington Coat Factory | | Dillard’s | | JCPenney | | Kohl’s | | Lord & Taylor | | Macy’s | | Nordstrom | | Sears | | Target |
Opportunistic Malls | | | | | | | | | | | | | | | | | | | | | | | | |
Beaver Valley Mall | | — | | — | | 2018 | | — | | — | | 2017 | | — | | — | | (1) | | — | | 2016 | | — |
New River Valley Mall | | 2020 | | — | | — | | — | | — | | 2018 | | — | | — | | — | | — | | — | | — |
Voorhees Town Center | | — | | — | | (1) | | — | | — | | — | | — | | — | | (1) | | — | | — | | — |
Wiregrass Commons Mall | | (1) | | — | | — | | 2020 | | (1) | | (1) | | — | | — | | — | | — | | — | | — |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non Core Malls | | | | | | | | | | | | | | | | | | | | | | | | |
Lycoming Mall | | — | | 2016 | | — | | 2019 | | — | | 2020 | | — | | — | | (1) | | — | | 2018 | | — |
Palmer Park Mall | | — | | 2019 | | 2018 | | — | | — | | — | | — | | — | | — | | — | | — | | — |
Uniontown Mall | | — | | 2016 | | — | | 2019 | | — | | 2020 | | — | | — | | — | | — | | 2018 | | — |
Washington Crown Center | | — | | 2018 | | — | | — | | — | | — | | — | | — | | (1) | | — | | 2019 | | — |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non Same Store Redevelopment Mall | | | | | | | | | | | | | | | | | | | | | | | | |
Springfield Town Center | | — | | — | | — | | — | | — | | (1) | | — | | — | | 2022 | | — | | — | | (1) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other Retail Properties | | | | | | | | | | | | | | | | | | | | | | | | |
Street Level Retail (2 Properties) | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — |
Metroplex Shopping Center | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | (1) |
The Court at Oxford Valley | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — |
Red Rose Commons | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — |
Total PREIT Owned Department Stores | | 5 | | 6 | | 6 | | 5 | | — | | 20 | | — | | — | | 6 | | 2 | | 16 | | 1 |
Total Non-PREIT Owned Department Stores | | 1 | | 1 | | 2 | | — | | 2 | | 5 | | 1 | | 1 | | 18 | | — | | 5 | | 3 |
| |
(1) | Department store is not PREIT owned. |
| |
(2) | The property has a Macy’s that is PREIT owned and a Bloomingdale’s that is not PREIT owned. |
| |
(3) | JCPenney closed this landlord owned store at this property in April 2015. The tenant is obligated to pay rent through July 2015. |
| |
(4) | The property has a Sears that is PREIT owned and a K-Mart that is not PREIT owned. |
Pennsylvania Real Estate Investment Trust
Condensed Balance Sheet
Proportionate Consolidation Method (1)
(in thousands, except per share amounts)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | June 30, 2015 | | December 31, 2014 |
| | GAAP | | Share of Unconsolidated Partnerships | | Total | | GAAP | | Share of Unconsolidated Partnerships | | Total |
ASSETS | | | | | | | | | | | | |
Investments in real estate, at cost | | | | | | | | | | | | |
Operating properties | | $ | 3,552,091 |
| | $ | 330,816 |
| | $ | 3,882,907 |
| | $ | 3,216,231 |
| | $ | 332,950 |
| | $ | 3,549,181 |
|
Construction in progress | | 125,525 |
| | 37,060 |
| | 162,585 |
| | 60,452 |
| | 16,578 |
| | 77,030 |
|
Land held for development | | 8,721 |
| | — |
| | 8,721 |
| | 8,721 |
| | — |
| | 8,721 |
|
Total investments in real estate | | 3,686,337 |
| | 367,876 |
| | 4,054,213 |
| | 3,285,404 |
| | 349,528 |
| | 3,634,932 |
|
Accumulated depreciation | | (1,083,207 | ) | | (99,484 | ) | | (1,182,691 | ) | | (1,061,051 | ) | | (97,786 | ) | | (1,158,837 | ) |
Net investments in real estate | | 2,603,130 |
| | 268,392 |
| | 2,871,522 |
| | 2,224,353 |
| | 251,742 |
| | 2,476,095 |
|
Investments in partnerships, at equity | | 155,129 |
| | (155,129 | ) | | — |
| | 140,882 |
| | (140,882 | ) | | — |
|
Other assets: | | | | | | | | | | | | |
Cash and cash equivalents | | 31,320 |
| | 11,620 |
| | 42,940 |
| | 40,433 |
| | 7,288 |
| | 47,721 |
|
Rent and other receivables (2) | | 34,599 |
| | 4,135 |
| | 38,734 |
| | 40,566 |
| | 3,970 |
| | 44,536 |
|
Intangible assets, net | | 24,123 |
| | 5,232 |
| | 29,355 |
| | 6,452 |
| | 6,071 |
| | 12,523 |
|
Deferred costs and other assets, net | | 88,196 |
| | 10,454 |
| | 98,650 |
| | 87,017 |
| | 7,252 |
| | 94,269 |
|
Assets held for sale | | 21,921 |
| | — |
| | 21,921 |
| | — |
| | — |
| | — |
|
Total assets | | $ | 2,958,418 |
| | $ | 144,704 |
| | $ | 3,103,122 |
| | $ | 2,539,703 |
| | $ | 135,441 |
| | $ | 2,675,144 |
|
LIABILITIES AND EQUITY | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Mortgage loans | | $ | 1,360,795 |
| | $ | 198,590 |
| | $ | 1,559,385 |
| | $ | 1,407,947 |
| | $ | 190,310 |
| | $ | 1,598,257 |
|
Term Loans | | 400,000 |
| | — |
| | 400,000 |
| | 130,000 |
| | — |
| | 130,000 |
|
Revolving Facility | | 120,000 |
| | — |
| | 120,000 |
| | — |
| | — |
| | — |
|
Tenants’ deposits and deferred rent | | 16,344 |
| | 3,580 |
| | 19,924 |
| | 15,541 |
| | 4,078 |
| | 19,619 |
|
Distributions in excess of partnership investments | | 64,680 |
| | (64,680 | ) | | — |
| | 65,956 |
| | (65,956 | ) | | — |
|
Fair value of derivative instruments | | 3,463 |
| | — |
| | 3,463 |
| | 2,490 |
| | — |
| | 2,490 |
|
Liabilities related to assets held for sale | | 931 |
| | — |
| | 931 |
| | — |
| | — |
| | — |
|
Other liabilities | | 91,572 |
| | 7,214 |
| | 98,786 |
| | 73,032 |
| | 7,009 |
| | 80,041 |
|
Total liabilities | | 2,057,785 |
| | 144,704 |
| | 2,202,489 |
| | 1,694,966 |
| | 135,441 |
| | 1,830,407 |
|
Equity: | | | | | | | | | | | | |
Total equity | | 900,633 |
| | — |
| | 900,633 |
| | 844,737 |
| | — |
| | 844,737 |
|
Total liabilities and equity | | $ | 2,958,418 |
| | $ | 144,704 |
| | $ | 3,103,122 |
| | $ | 2,539,703 |
| | $ | 135,441 |
| | $ | 2,675,144 |
|
| |
(1) | Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s 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 Company’s equity in these properties. |
| |
(2) | Total includes straight line rent of $28.0 million ($24.4 million consolidated, $3.6 million unconsolidated) as of June 30, 2015 and $27.8 million ($23.7 million consolidated, $4.1 million unconsolidated) as of December 31, 2014. |
Pennsylvania Real Estate Investment Trust
Investment in Real Estate (1)
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | June 30, 2015 | | December 31, 2014 |
| | 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 | | $ | 74,489 |
| | $ | — |
| | $ | 32,090 |
| | $ | 42,399 |
| | $ | 74,120 |
| | $ | — |
| | $ | 30,465 |
| | $ | 43,655 |
|
Capital City Mall | | 99,733 |
| | 3,181 |
| | 36,153 |
| | 66,761 |
| | 99,665 |
| | 152 |
| | 34,419 |
| | 65,398 |
|
Cherry Hill Mall | | 472,001 |
| | — |
| | 174,812 |
| | 297,189 |
| | 470,493 |
| | — |
| | 163,178 |
| | 307,315 |
|
Crossroads Mall | | 49,201 |
| | 196 |
| | 16,140 |
| | 33,257 |
| | 48,872 |
| | 195 |
| | 15,098 |
| | 33,969 |
|
Cumberland Mall | | 67,768 |
| | 854 |
| | 18,520 |
| | 50,102 |
| | 67,422 |
| | 375 |
| | 17,412 |
| | 50,385 |
|
Dartmouth Mall | | 67,418 |
| | — |
| | 33,220 |
| | 34,198 |
| | 64,544 |
| | — |
| | 32,540 |
| | 32,004 |
|
Exton Square Mall | | 158,226 |
| | 3,163 |
| | 43,667 |
| | 117,722 |
| | 158,622 |
| | 1 |
| | 41,473 |
| | 117,150 |
|
Francis Scott Key Mall | | 90,568 |
| | — |
| | 30,377 |
| | 60,191 |
| | 90,309 |
| | 1,681 |
| | 28,480 |
| | 63,510 |
|
Gadsden Mall | | 37,260 |
| | — |
| | 7,134 |
| | 30,126 |
| | 64,301 |
| | — |
| | 16,483 |
| | 47,818 |
|
Jacksonville Mall | | 84,211 |
| | — |
| | 28,551 |
| | 55,660 |
| | 84,173 |
| | 2 |
| | 27,148 |
| | 57,027 |
|
Logan Valley Mall | | 101,370 |
| | 174 |
| | 33,568 |
| | 67,976 |
| | 100,887 |
| | — |
| | 32,222 |
| | 68,665 |
|
Lycoming Mall | | 79,284 |
| | — |
| | 27,927 |
| | 51,357 |
| | 79,240 |
| | — |
| | 26,547 |
| | 52,693 |
|
Magnolia Mall | | 90,770 |
| | — |
| | 38,704 |
| | 52,066 |
| | 90,725 |
| | — |
| | 37,033 |
| | 53,692 |
|
Moorestown Mall | | 133,759 |
| | 2,956 |
| | 41,895 |
| | 94,820 |
| | 131,353 |
| | 2,147 |
| | 39,061 |
| | 94,439 |
|
New River Valley Mall | | 50,051 |
| | 36 |
| | 22,198 |
| | 27,889 |
| | 59,340 |
| | — |
| | 27,497 |
| | 31,843 |
|
Palmer Park Mall | | 34,719 |
| | — |
| | 15,381 |
| | 19,338 |
| | 34,717 |
| | — |
| | 15,003 |
| | 19,714 |
|
Patrick Henry Mall | | 146,196 |
| | — |
| | 56,704 |
| | 89,492 |
| | 146,434 |
| | — |
| | 53,642 |
| | 92,792 |
|
Plymouth Meeting Mall | | 173,277 |
| | 2 |
| | 58,088 |
| | 115,191 |
| | 169,981 |
| | — |
| | 54,037 |
| | 115,944 |
|
The Mall at Prince Georges | | 103,820 |
| | — |
| | 47,455 |
| | 56,365 |
| | 103,738 |
| | 35 |
| | 45,879 |
| | 57,894 |
|
Springfield Town Center | | 414,748 |
| | 57,896 |
| | 2,692 |
| | 469,952 |
| | — |
| | — |
| | — |
| | — |
|
Uniontown Mall (2) | | — |
| | — |
| | — |
| | — |
| | 43,751 |
| | — |
| | 15,973 |
| | 27,778 |
|
Valley Mall | | 100,826 |
| | 209 |
| | 33,741 |
| | 67,294 |
| | 100,682 |
| | 177 |
| | 32,217 |
| | 68,642 |
|
Valley View Mall | | 78,621 |
| | — |
| | 21,760 |
| | 56,861 |
| | 78,811 |
| | 1,032 |
| | 20,426 |
| | 59,417 |
|
Viewmont Mall | | 99,965 |
| | — |
| | 31,619 |
| | 68,346 |
| | 98,404 |
| | — |
| | 29,834 |
| | 68,570 |
|
Voorhees Town Center | | 84,011 |
| | 605 |
| | 30,865 |
| | 53,751 |
| | 83,501 |
| | 589 |
| | 28,152 |
| | 55,938 |
|
Washington Crown Center | | 51,814 |
| | — |
| | 17,664 |
| | 34,150 |
| | 51,562 |
| | 30 |
| | 16,747 |
| | 34,845 |
|
Willow Grove Park | | 237,267 |
| | — |
| | 77,283 |
| | 159,984 |
| | 236,236 |
| | — |
| | 73,260 |
| | 162,976 |
|
Wiregrass Commons Mall | | 41,867 |
| | — |
| | 9,734 |
| | 32,133 |
| | 56,539 |
| | — |
| | 16,939 |
| | 39,600 |
|
Woodland Mall | | 193,567 |
| | — |
| | 54,176 |
| | 139,391 |
| | 192,976 |
| | — |
| | 51,048 |
| | 141,928 |
|
Wyoming Valley Mall | | 112,442 |
| | — |
| | 39,804 |
| | 72,638 |
| | 112,074 |
| | — |
| | 37,980 |
| | 74,094 |
|
Total Consolidated Malls | | 3,529,249 |
| | 69,272 |
| | 1,081,922 |
| | 2,516,599 |
| | 3,193,472 |
| | 6,416 |
| | 1,060,193 |
| | 2,139,695 |
|
Unconsolidated Malls | | | | | | | | | | | | | | | | |
The Gallery at Market East | | 127,752 |
| | 17,990 |
| | 17,676 |
| | 128,066 |
| | 126,515 |
| | 8,965 |
| | 15,245 |
| | 120,235 |
|
Lehigh Valley Mall | | 46,133 |
| | 1,007 |
| | 24,075 |
| | 23,065 |
| | 46,423 |
| | 418 |
| | 23,750 |
| | 23,091 |
|
Springfield Mall | | 57,251 |
| | 9 |
| | 17,451 |
| | 39,809 |
| | 57,017 |
| | 9 |
| | 16,670 |
| | 40,356 |
|
Total Unconsolidated Malls | | 231,136 |
| | 19,006 |
| | 59,202 |
| | 190,940 |
| | 229,955 |
| | 9,392 |
| | 55,665 |
| | 183,682 |
|
TOTAL MALLS | | $ | 3,760,385 |
| | $ | 88,278 |
| | $ | 1,141,124 |
| | $ | 2,707,539 |
| | $ | 3,423,427 |
| | $ | 15,808 |
| | $ | 1,115,858 |
| | $ | 2,323,377 |
|
(continued on next page)
Pennsylvania Real Estate Investment Trust
Investment in Real Estate (1) (continued)
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | June 30, 2015 | | December 31, 2014 |
| | 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 Other Retail Properties | | | | | | | | | | | | | | | | |
Monroe Marketplace (3) | | $ | 1,515 |
| | $ | 459 |
| | $ | 73 |
| | $ | 1,901 |
| | $ | 1,515 |
| | $ | — |
| | $ | 60 |
| | $ | 1,455 |
|
Pitney Road Plaza (4) | | 1,088 |
| | 3 |
| | 34 |
| | 1,057 |
| | 1,017 |
| | 20 |
| | 13 |
| | 1,024 |
|
Sunrise Plaza (5) | | — |
| | 108 |
| | — |
| | 108 |
| | — |
| | — |
| | — |
| | — |
|
Street Level Retail (2 Properties) | | 20,239 |
| | 1,668 |
| | 1,178 |
| | 20,729 |
| | 20,227 |
| | — |
| | 785 |
| | 19,442 |
|
Total Consolidated Other Retail Properties | | 22,842 |
| | 2,238 |
| | 1,285 |
|
| 23,795 |
| | 22,759 |
| | 20 |
| | 858 |
|
| 21,921 |
|
Unconsolidated Other Retail Properties | | | | | | | | | | | | | | | | |
Metroplex Shopping Center | | 42,869 |
| | — |
| | 22,903 |
| | 19,966 |
| | 42,919 |
| | — |
| | 22,125 |
| | 20,794 |
|
The Court at Oxford Valley | | 27,225 |
| | — |
| | 3,154 |
| | 24,071 |
| | 28,242 |
| | — |
| | 10,532 |
| | 17,710 |
|
Red Rose Commons | | 11,421 |
| | — |
| | 9,810 |
| | 1,611 |
| | 13,617 |
| | 1 |
| | 5,221 |
| | 8,397 |
|
Springfield Park (6) | | 8,467 |
| | — |
| | 2,336 |
| | 6,131 |
| | 8,519 |
| | — |
| | 2,216 |
| | 6,303 |
|
Total Unconsolidated Other Retail Properties | | 89,982 |
| | — |
| | 38,203 |
| | 51,779 |
| | 93,297 |
| | 1 |
| | 40,094 |
| | 53,204 |
|
TOTAL OTHER RETAIL PROPERTIES | | $ | 112,824 |
| | $ | 2,238 |
| | $ | 39,488 |
| | $ | 75,574 |
| | $ | 116,056 |
| | $ | 21 |
| | $ | 40,952 |
| | $ | 75,125 |
|
Consolidated Properties Under Development | | | | | | | | | | | | | | | | |
Springhills | | $ | — |
| | $ | 19,229 |
| | $ | — |
| | $ | 19,229 |
| | $ | — |
| | $ | 19,230 |
| | $ | — |
| | $ | 19,230 |
|
White Clay Point | | — |
| | 34,786 |
| | — |
| | 34,786 |
| | — |
| | 34,786 |
| | — |
| | 34,786 |
|
Total Consolidated Properties Under Development | | — |
| | 54,015 |
| | — |
| | 54,015 |
| | — |
| | 54,016 |
| | — |
| | 54,016 |
|
Unconsolidated Properties Under Development | | | | | | | | | | | | | | | | |
Gloucester Premium Outlets | | 3,458 |
| | 17,270 |
| | — |
| | 20,728 |
| | 3,458 |
| | 6,401 |
| | — |
| | 9,859 |
|
Pavilion at Market East | | 6,240 |
| | 784 |
| | 2,079 |
| | 4,945 |
| | 6,240 |
| | 784 |
| | 2,027 |
| | 4,997 |
|
Total Unconsolidated Properties Under Development | | 9,698 |
| | 18,054 |
| | 2,079 |
| | 25,673 |
| | 9,698 |
| | 7,185 |
| | 2,027 |
| | 14,856 |
|
Other Properties | | | | | | | | | | | | | | | | |
Land held for development - consolidated | | 8,721 |
| | — |
| | — |
| | 8,721 |
| | 8,721 |
| | — |
| | — |
| | 8,721 |
|
Total Other Properties | | 8,721 |
| | — |
| | — |
| | 8,721 |
| | 8,721 |
| | — |
| | — |
| | 8,721 |
|
TOTAL DEVELOPMENT AND OTHER PROPERTIES | | $ | 18,419 |
| | $ | 72,069 |
| | $ | 2,079 |
| | $ | 88,409 |
| | $ | 18,419 |
| | $ | 61,201 |
| | $ | 2,027 |
| | $ | 77,593 |
|
TOTAL INVESTMENT IN REAL ESTATE | | $ | 3,891,628 |
| | $ | 162,585 |
| | $ | 1,182,691 |
| | $ | 2,871,522 |
| | $ | 3,557,902 |
| | $ | 77,030 |
| | $ | 1,158,837 |
| | $ | 2,476,095 |
|
CONSOLIDATED PROPERTIES | | $ | 3,560,812 |
| | $ | 125,525 |
| | $ | 1,083,207 |
| | $ | 2,603,130 |
| | $ | 3,224,952 |
| | $ | 60,452 |
| | $ | 1,061,051 |
| | $ | 2,224,353 |
|
UNCONSOLIDATED PROPERTIES | | 330,816 |
| | 37,060 |
| | 99,484 |
| | 268,392 |
| | 332,950 |
| | 16,578 |
| | 97,786 |
| | 251,742 |
|
TOTAL INVESTMENT IN REAL ESTATE | | $ | 3,891,628 |
| | $ | 162,585 |
| | $ | 1,182,691 |
| | $ | 2,871,522 |
| | $ | 3,557,902 |
| | $ | 77,030 |
| | $ | 1,158,837 |
| | $ | 2,476,095 |
|
| |
(1) | Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s 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 Company’s equity in these properties. |
| |
(2) | The Company has reclassified the investment in real estate for this property as assets held for sale. |
| |
(3) | Consists of two parcels remaining after the sale of the property in 2010. |
| |
(4) | Consists of one parcel remaining after the sale of the property in 2010. |
| |
(5) | Consists of two parcels remaining after the sale of the property in 2010. |
| |
(6) | The Company sold its interest in this property in July 2015. |
Pennsylvania Real Estate Investment Trust
Capital Expenditures
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended June 30, 2015 | | Six Months Ended June 30, 2015 |
| | Consolidated | | Unconsolidated | | Total | | Consolidated | | Unconsolidated | | Total |
Redevelopment projects with incremental GLA and/or anchor replacement (1) | | $ | 10,663 |
| | $ | 8,331 |
| | $ | 18,994 |
| | $ | 9,690 |
| | $ | 13,680 |
| | $ | 23,370 |
|
New development projects | | — |
| | 5,753 |
| | 5,753 |
| | 63 |
| | 10,868 |
| | 10,931 |
|
Renovation with no incremental GLA | | 520 |
| | — |
| | 520 |
| | 1,330 |
| | — |
| | 1,330 |
|
Tenant allowances | | 6,879 |
| | 105 |
| | 6,984 |
| | 10,663 |
| | 211 |
| | 10,874 |
|
Recurring capital expenditures: | | | | | | | | | | | | |
CAM expenditures | | 2,221 |
| | 147 |
| | 2,368 |
| | 2,809 |
| | 169 |
| | 2,978 |
|
Non-CAM expenditures | | 118 |
| | 28 |
| | 146 |
| | 611 |
| | 34 |
| | 645 |
|
Total recurring capital expenditures | | 2,339 |
| | 175 |
| | 2,514 |
| | 3,420 |
| | 203 |
| | 3,623 |
|
Total | | $ | 20,401 |
| | $ | 14,364 |
| | $ | 34,765 |
| | $ | 25,166 |
| | $ | 24,962 |
| | $ | 50,128 |
|
| |
(1) | Net of any tenant reimbursements, parcel sales, tax credits or other incentives. |
Pennsylvania Real Estate Investment Trust
Debt Analysis as of June 30, 2015
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | |
| | Outstanding Debt |
| | Fixed Rate (1) | | % of Total Indebtedness | | Variable Rate | | % of Total Indebtedness | | Total | | % of Total Indebtedness |
Consolidated mortgage loans payable | | $ | 1,354,951 |
| | 65.1 | % | | $ | 5,844 |
| | 0.3 | % | | $ | 1,360,795 |
| | 65.4 | % |
Unconsolidated mortgage loans payable | | 184,767 |
| | 8.9 | % | | 13,823 |
| | 0.7 | % | | 198,590 |
| | 9.6 | % |
Term Loans | | 250,000 |
| | 12.0 | % | | 150,000 |
| | 7.2 | % | | 400,000 |
| | 19.2 | % |
2013 Revolving Facility | | — |
| | — | % | | 120,000 |
| | 5.8 | % | | 120,000 |
| | 5.8 | % |
TOTAL OUTSTANDING DEBT | | $ | 1,789,718 |
| | 86.0 | % | | $ | 289,667 |
| | 14.0 | % | | $ | 2,079,385 |
| | 100.0 | % |
AVERAGE STATED INTEREST RATE | | 4.59 | % | | | | 1.59 | % | | | | 4.17 | % | | |
| |
(1) | Includes variable rate debt swapped to fixed rate debt. |
|
| | | | | | | | | | | | | | | | | | |
| | | | Average Debt Balance |
| | | | Mortgage Debt | | 2013 Revolving Facility | | Term Loans | | TOTAL |
Beginning Balance | | 3/31/2015 | | $ | 1,601,723 |
| | $ | 210,000 |
| | $ | 250,000 |
| | $ | 2,061,723 |
|
Mortgage loan amortization | | | | (6,128 | ) | | — |
| | — |
| | (6,128 | ) |
Magnolia Mall mortgage loan repayment | | | | (55,317 | ) | | — |
| | — |
| | (55,317 | ) |
Patrick Henry Mall mortgage loan repayment | | | | (83,820 | ) | | — |
| | — |
| | (83,820 | ) |
Patrick Henry Mall mortgage loan financing | | | | 96,200 |
| | — |
| | — |
| | 96,200 |
|
Gloucester Premium Outlet construction loan draw | | | | 6,727 |
| | — |
| | — |
| | 6,727 |
|
Term Loan borrowings | | | | — |
| | — |
| | 150,000 |
| | 150,000 |
|
2013 Revolving Facility, net | | | | — |
| | (90,000 | ) | | — |
| | (90,000 | ) |
Ending Balance | | 6/30/2015 | | $ | 1,559,385 |
| | $ | 120,000 |
| | $ | 400,000 |
| | $ | 2,079,385 |
|
Weighted Average Balance | | | | $ | 1,557,288 |
| | $ | 248,791 |
| | $ | 256,593 |
| | $ | 2,062,673 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Debt Maturities (1) |
Year | | Scheduled Amortization | | Mortgage Balance at Maturity | | 2013 Revolving Facility | | Term Loans | | Total Debt |
2015 | | $ | 12,115 |
| | $ | 167,845 |
| | $ | — |
| | $ | — |
| | $ | 179,960 |
|
2016 | | 17,173 |
| | 219,480 |
| | — |
| | — |
| | 236,653 |
|
2017 | | 16,966 |
| | 153,283 |
| | — |
| | — |
| | 170,249 |
|
2018 | | 16,819 |
| | 157,714 |
| | 120,000 |
| | — |
| | 294,533 |
|
2019 | | 17,433 |
| | 28,050 |
| | — |
| | 150,000 |
| | 195,483 |
|
Thereafter | | 53,535 |
| | 698,972 |
| | — |
| | 250,000 |
| | 1,002,507 |
|
| | $ | 134,041 |
| | $ | 1,425,344 |
| | $ | 120,000 |
| | $ | 400,000 |
| | $ | 2,079,385 |
|
| |
(1) | The weighted average period to mortgage loan maturity is 4.89 years, excluding extension options. Includes 100% of mortgage loan debt from consolidated properties and our share of mortgage loan debt from unconsolidated properties, based on our ownership percentage. |
|
| | | | | | | |
Weighted Average Mortgage Interest Rates |
Year | | Balance | | Interest Rate |
2015 | | $ | 169,870 |
| | 5.48 | % |
2016 | | 222,641 |
| | 5.55 | % |
2017 | | 153,485 |
| | 5.45 | % |
2018 | | 160,309 |
| | 3.55 | % |
2019 | | 28,050 |
| | 4.38 | % |
Thereafter | | 825,030 |
| | 4.58 | % |
Total | | $ | 1,559,385 |
| | 4.79 | % |
Pennsylvania Real Estate Investment Trust
Debt Schedule as of June 30, 2015
(in thousands)
|
| | | | | | | | | | | | | | | | | | | |
| | Debt (1) | | Interest Rate | | Annual Debt Service | | Balance at Maturity | | Initial Maturity Date | | Fully Extended Maturity Date |
Fixed Rate Mortgage Loans | | | | | | | | | | | | |
Springfield East (2)(3) | | $ | 2,061 |
| | 5.39 | % | | $ | 92 |
| | $ | 2,061 |
| | June 2015 | | Mar 2020 |
Springfield Park (2)(3) | | 2,419 |
| | 5.39 | % | | 107 |
| | 2,419 |
| | June 2015 | | Mar 2020 |
Springfield Mall (2) | | 31,000 |
| | 4.77 | % | | 2,118 |
| | 30,741 |
| | Nov 2015 | | Nov 2015 |
Willow Grove Park | | 134,390 |
| | 5.65 | % | | 11,083 |
| | 132,624 |
| | Dec 2015 | | Dec 2015 |
Valley Mall | | 80,105 |
| | 5.49 | % | | 6,129 |
| | 78,996 |
| | Mar 2016 | | Mar 2016 |
Woodland Mall | | 142,536 |
| | 5.58 | % | | 10,760 |
| | 140,484 |
| | Apr 2016 | | Apr 2016 |
The Mall at Prince Georges | | 150,000 |
| | 5.51 | % | | 8,269 |
| | 150,000 |
| | June 2017 | | June 2017 |
Francis Scott Key Mall (2) | | 62,625 |
| | 3.71 | % | | 2,321 |
| | 62,625 |
| | Mar 2018 | | Mar 2018 |
Viewmont Mall (2) | | 48,000 |
| | 3.72 | % | | 1,786 |
| | 48,000 |
| | Mar 2018 | | Mar 2018 |
Lycoming Mall (2) | | 33,502 |
| | 3.72 | % | | 3,001 |
| | 30,907 |
| | Mar 2018 | | Mar 2018 |
New River Valley Mall (2)(4) | | 28,050 |
| | 4.38 | % | | 1,229 |
| | 28,050 |
| | Jan 2019 | | Jan 2019 |
Valley View Mall | | 29,958 |
| | 5.95 | % | | 2,290 |
| | 27,161 |
| | July 2020 | | July 2020 |
Lehigh Valley Mall | | 65,136 |
| | 5.88 | % | | 4,972 |
| | 58,519 |
| | July 2020 | | July 2020 |
Red Rose Commons | | 14,090 |
| | 5.14 | % | | 978 |
| | 12,378 |
| | July 2021 | | July 2021 |
The Court at Oxford Valley | | 28,844 |
| | 5.56 | % | | 2,058 |
| | 25,782 |
| | July 2021 | | July 2021 |
Capital City Mall | | 62,752 |
| | 5.30 | % | | 4,379 |
| | 54,715 |
| | Mar 2022 | | Mar 2022 |
Cumberland Mall | | 48,643 |
| | 4.40 | % | | 3,433 |
| | 38,157 |
| | Aug 2022 | | Aug 2022 |
Cherry Hill Mall | | 295,988 |
| | 3.90 | % | | 16,980 |
| | 251,120 |
| | Sept 2022 | | Sept 2022 |
Dartmouth Mall | | 64,453 |
| | 3.97 | % | | 3,825 |
| | 53,300 |
| | Apr 2023 | | Apr 2023 |
Metroplex Shopping Center | | 41,217 |
| | 5.00 | % | | 2,818 |
| | 33,502 |
| | Oct 2023 | | Oct 2023 |
Wyoming Valley Mall | | 77,749 |
| | 5.17 | % | | 5,124 |
| | 66,747 |
| | Dec 2023 | | Dec 2023 |
Patrick Henry Mall | | 96,200 |
| | 4.35 | % | | 5,748 |
| | 77,591 |
| | July 2025 | | July 2025 |
Total Fixed Rate Mortgage Loans | | $ | 1,539,718 |
| | 4.82 | % | | $ | 99,500 |
| | $ | 1,405,879 |
| | | | |
Variable Rate Mortgage Loans | | | | | | | | | | | | |
Pavilion East Associates | | $ | 3,485 |
| | 2.94 | % | | $ | 253 |
| | $ | 3,283 |
| | Aug 2017 | | Aug 2017 |
Francis Scott Key Mall | | 5,844 |
| | 2.78 | % | | 162 |
| | 5,844 |
| | Mar 2018 | | Mar 2018 |
Gloucester Premium Outlets | | 10,338 |
| | 1.68 | % | | 173 |
| | 10,338 |
| | June 2018 | | June 2019 |
Total Variable Rate Mortgage Loans | | $ | 19,667 |
| | 2.23 | % | | $ | 588 |
| | $ | 19,465 |
| | | | |
Total Mortgage Loans | | $ | 1,559,385 |
| | 4.79 | % | | $ | 100,088 |
| | $ | 1,425,344 |
| | | | |
CONSOLIDATED MORTGAGE LOANS | | $ | 1,360,795 |
| | 4.74 | % | | $ | 86,519 |
| | $ | 1,246,321 |
| | | | |
UNCONSOLIDATED MORTGAGE LOANS | | 198,590 |
| | 5.14 | % | | 13,569 |
| | 179,023 |
| | | | |
2014 5 YEAR TERM LOAN (2) | | 150,000 |
| | 3.02 | % | | 4,525 |
| | 150,000 |
| | Jan 2019 | | Jan 2019 |
2014 7 YEAR TERM LOAN (2) | | 100,000 |
| | 3.30 | % | | 3,297 |
| | 100,000 |
| | Jan 2021 | | Jan 2021 |
2015 5 YEAR TERM LOAN VARIABLE (6) | | 150,000 |
| | 1.64 | % | | 2,455 |
| | 150,000 |
| | June 2020 | | June 2020 |
2013 REVOLVING FACILITY | | 120,000 |
| | 1.43 | % | | 1,721 |
| | 120,000 |
| | June 2018 | | June 2020 |
Total | | $ | 2,079,385 |
| | 4.17 | % | | $ | 112,086 |
| | $ | 1,945,344 |
| | | | |
AMORTIZATION OF DEFERRED FINANCING FEES | | — |
| | 0.19 | % | | — |
| | — |
| | | | |
EFFECTIVE INTEREST RATE | | $ | 2,079,385 |
| | 4.36 | % | | $ | 112,086 |
| | $ | 1,945,344 |
| | | | |
| |
(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 loan has been effectively swapped to the fixed interest rate presented. |
| |
(3) | The Company sold their interest in this property in July 2015. |
| |
(4) | Payments are of interest only until 2017, then principal and interest at a rate to be determined. |
Pennsylvania Real Estate Investment Trust
Selected Debt Ratios (1)
|
| | |
| |
| June 30, 2015 |
Consolidated Liabilities to Gross Asset Value | 50.25 | % |
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 60% | |
Secured Indebtedness to Gross Asset Value | 35.76 | % |
Secured indebtedness to Gross Asset Value may not exceed 60% | |
Adjusted EBITDA to Fixed Charges | 1.94 |
|
Adjusted EBITDA may not be less than 1.50 to 1.00 | |
Unencumbered Adjusted NOI to Unsecured Interest Expense | 8.79 |
|
Unencumbered Adjusted NOI to Unsecured Interest Expense may not be less than 1.75 to 1.00 | |
Unencumbered Debt Yield | 17.31 | % |
The ratio of Unencumbered Adjusted NOI to Unsecured Debt may not be less than 11% | |
| |
(1) | The 2013 Revolving Facility agreement dated as of April 17, 2013, as amended, the 2014 Term Loan agreements dated as of January 8, 2014, and the 2015 Term Loan agreement dated June 26, 2015 contain identical 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 2013 Revolving Facility, 2014 Term Loans, and 2015 Term Loan. In addition to the ratios set forth herein, there are several other ratios set forth in the covenants under the 2013 Revolving Facility, 2014 Term Loans and 2015 Term Loan with which the Company must comply, all of which are described in the Company’s 2014 Annual Report on Form 10-K dated February 23, 2015. |
Pennsylvania Real Estate Investment Trust
Definitions
Funds From Operations (FFO)
The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations (“FFO”), which is a non-GAAP measure commonly used by REITs, as net income (computed in accordance with GAAP) excluding gains and losses on sales of operating properties, extraordinary items (computed in accordance with GAAP) and significant non-recurring events that materially distort the comparative measurement of company performance over time; plus real estate depreciation and amortization; and after adjustments for unconsolidated partnerships and joint ventures 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’s established guidance provides that excluding impairment write downs of depreciable real estate is consistent with the NAREIT definition.
FFO is a commonly used measure of operating performance and profitability among REITs. We use FFO and FFO per diluted share and unit of limited partnership interest in our operating partnership (“OP Unit”) in measuring our performance against our peers and as one of the performance measures for determining incentive compensation amounts earned under certain of our performance-based executive compensation programs.
FFO does not include gains and losses on sales of operating real estate assets or impairment write downs of depreciable real estate, 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 NOI. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that net income is the most directly comparable GAAP measurement to FFO.
We also present Funds From Operations, as adjusted, and Funds From Operations per diluted share and OP Unit, as adjusted, which are non-GAAP measures, for the three and six months ended June 30, 2015 and 2014 to show the effect of accelerated amortization of financing costs, acquisition costs, loss on hedge ineffectiveness, and provision for employee separation expense, which had a significant effect on our results of operations, but are not, in our opinion, indicative of our operating performance.
We believe that FFO is helpful to management and investors as a measure of operating performance because it excludes various items included in net income that do not relate to or are not indicative of operating performance, such as gains on sales of operating real estate and depreciation and amortization of real estate, among others. We believe that Funds From Operations, as adjusted, is helpful to management and investors as a measure of operating performance because it adjusts FFO to exclude items that management does not believe are indicative of our operating performance, such as acquisition costs and loss on hedge ineffectiveness.
Net Operating Income (NOI)
NOI (a non-GAAP measure) is derived from real estate revenue (determined in accordance with generally accepted accounting principles, or GAAP, including lease termination revenue) minus property operating expenses (determined in accordance with GAAP), plus our share of revenue and property operating expense of our partnership investments. 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 our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. It is not indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that NOI is helpful to management and investors as a measure of operating performance because it is an indicator of the return on property investment and provides a method of comparing property performance over time. We believe that net income is the most directly comparable GAAP measurement to NOI.
NOI excludes other income, general and administrative expense, interest expense, depreciation and amortization, gain on sale of interest in non-operating real estate, impairment losses, and acquisition costs and other expenses.
Same Store NOI
Same Store NOI is calculated using retail properties owned for the full periods presented and excludes properties acquired or disposed of or under redevelopment during the periods presented.
Funds Available for Distribution (FAD)
FAD is a measure of a real estate company’s cash flows generated by operations and capacity to pay dividends. The Company calculates FAD by starting with FFO as adjusted and subtracting (1) straight-line rent, (2) normalized recurring capital expenditures that are capitalized but necessary to maintain our properties, (3) operational tenant allowances, (4) capitalized leasing costs, and (5) amortization of above- and below-market lease intangibles.
We believe that net income is the most directly comparable GAAP measurement to FAD. We believe FAD provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. In addition, we believe that to further understand our liquidity, FAD should be compared with our cash flow from operating activities determined in accordance with GAAP, as presented in our consolidated financial statements. The computation of FAD may not be comparable to FAD reported by other REITs or real estate companies and FAD does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, or as an alternative to net cash flow from operating activities (determined in accordance with GAAP), as a measure of our liquidity.
Pennsylvania Real Estate Investment Trust
Forward Looking Statements
This Quarterly Supplemental and Operating Information contains certain “forward-looking statements” within the meaning of the federal securities laws. 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 our current views about future events, achievements or results and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, our business might be materially and adversely affected by uncertainties affecting real estate businesses generally as well as the following, among other factors:
| |
• | our substantial debt and stated value of preferred shares and our high leverage ratio; |
| |
• | constraining leverage, unencumbered debt yield, interest and tangible net worth covenants under our Credit Agreements; |
| |
• | potential losses on impairment of certain long-lived assets, such as real estate, or of intangible assets, such as goodwill, including such assets that we might be required to record in connection with any dispositions of assets; |
| |
• | changes in the retail industry, including consolidation and store closings, particularly among anchor tenants; |
| |
• | our ability to sell properties that we seek to dispose of and our ability to obtain estimated sale prices; |
| |
• | the effects of online shopping and other uses of technology on our retail tenants; |
| |
• | risks related to development and redevelopment activities; |
| |
• | current economic conditions and the state of unemployment growth and consumer confidence and spending, and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions and our cash flows, and the value and potential impairment of our properties; |
| |
• | our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; |
| |
• | our 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; |
| |
• | our ability to identify and execute on suitable acquisition opportunities and to integrate acquired properties into our portfolio; |
| |
• | our partnership and joint ventures with third parties to acquire or develop properties; |
| |
• | our short and long-term liquidity position; |
| |
• | general economic, financial and political conditions, including credit and capital market conditions, changes in interest rates or unemployment; |
| |
• | our ability to maintain and increase property occupancy, sales and rental rates, in light of the relatively high number of leases that have expired or are expiring in the next two years; |
| |
• | acts of violence at malls, including our properties, or other similar spaces, and the potential effect on traffic and sales; |
| |
• | changes to our corporate management team and any resulting modifications to our business strategies; |
| |
• | increases in operating costs that cannot be passed on to tenants; |
| |
• | concentration of our properties in the Mid-Atlantic region; |
| |
• | changes in local market conditions, such as the supply of or demand for retail space, or other competitive factors; and |
| |
• | potential dilution from any capital raising transactions or other equity issuances. |