In July 2005, PREIT entered into a five year agreement with Service Management Systems (SMS) to outsource housekeeping and maintenance services for the Company’s properties. SMS, based in Nashville, Tennessee, specializes in providing housekeeping programs to high traffic, public facilities, including many malls and other retail properties. SMS is scheduled to take over these functions at the Company’s malls over the next few quarters. In the first full year of the agreement, the Company estimates that its benefit will be approximately $1.5 million to $2 million.
The following table updates the Company’s earnings guidance for the quarter ended September 30, 2005 and the year ended December 31, 2005. In establishing guidance for the third quarter, the Company is giving effect to: (i) the sales of its interest in Laurel Mall and of the four industrial properties and (ii) a $0.8 million ($0.02 per share) charge to earnings related to a prepayment penalty resulting from the early refinancing of a mortgage loan at Magnolia Mall, both of which are discussed below under “Subsequent Events.” The Company’s updated guidance does not include the impact of any additional acquisitions during the remainder of 2005.
The Company is reaffirming its current FFO guidance for the year ended December 31, 2005 at $3.72 to $3.84 per share. The Company’s guidance for the year includes an estimate for its share of the net proceeds received from a settlement agreement reached with the Delaware Department of Transportation. The amount and timing of the Company’s share of the settlement cannot be determined at this time, but the Company anticipates that a final determination will be made before the end of 2005.
During the second quarter, the Company exercised purchase options to buy the land for two of its planned power center development projects. PREIT acquired a 28-acre parcel in New Garden Township, Chester County, Pennsylvania, for approximately $4.3 million in cash, and a 43-acre parcel in Lacey Township, Ocean County, New Jersey, for approximately $9.0 million in cash.
PREIT Reports Second Quarter Results and Progress on Redevelopment Initiatives
August 4, 2005
Page 6
In June, PREIT entered into forward starting swap agreements to hedge interest rates on $370 million of future debt. In 2007 and 2008, PREIT has some known obligations that are likely to require financings. The Company anticipates that it will also have strategic opportunities for other financings in those years. With these swap agreements, the Company has taken action intended to manage a portion of the interest rate risk associated with these anticipated future financings.
In April, the Company signed commitment letters with each of Prudential Mortgage Capital Company and Northwestern Mutual for a $200 million first mortgage loan secured by Cherry Hill Mall in Cherry Hill, New Jersey. The Company anticipates that the closing will take place in October 2005.
Subsequent Events
On July 11, 2005, the Company completed a $66.0 million refinancing of the mortgage loan on Magnolia Mall in Florence, South Carolina. The repayment of the previous mortgage loan prior to its scheduled maturity in January 2007 resulted in a prepayment penalty of approximately $0.8 million, which will be included in the Company's financial results for the quarter ending September 30, 2005.
In May 2005, a partnership in which a subsidiary of the Company holds a 50% interest entered into a settlement agreement with the Delaware Department of Transportation providing for the sale for $17.0 million of a 111 acre site on which the Christiana Phase II project would have been built. In July 2005, in connection with the closing under the settlement agreement, the partnership sold the property to the Delaware Department of Transportation and received $17.0 million. The Company and its partners are currently in discussions with respect to the allocation of these funds.
On July 28, 2005, PREIT signed a commitment letter with Prudential Mortgage Capital Company and Teachers Insurance and Annuity Association of America for a $160.0 million first mortgage loan secured by Willow Grove Park in Willow Grove, Pennsylvania. The Company anticipates that the closing will take place in December 2005.
On July 29, 2005, a partnership in which PREIT holds a 40% interest completed the previously announced sale of Laurel Mall in Hazleton, Pennsylvania, to Laurel Mall, LLC. The Company received net proceeds of approximately $3.9 million and expects to record a gain from this transaction of approximately $5.1 million in the third quarter of 2005.
On August 1, 2005, the Company sold its four industrial properties for approximately $4.3 million. The Company expects to record a gain of approximately $3.8 million from this transaction in the third quarter of 2005.
Press releases with respect to certain of these matters can be obtained from the Company’s website at www.preit.com or by contacting the Company’s Investor Relations Department.
PREIT Reports Second Quarter Results and Progress on Redevelopment Initiatives
August 4, 2005
Page 7
Conference Call Information
The Company has scheduled a conference call for 3:00 p.m. Eastern Time today to review its first quarter results. To listen to the call, please dial (877) 691-0878 (domestic) or (973) 935-8505 (international) at least five minutes before the scheduled start time. Investors can also access the call in a “listen only” mode via the Internet at the Company website at www.preit.com, www.vcall.com or at www.viavid.net. Please allow extra time prior to the call to visit the site and download the necessary software to listen to the Internet broadcast. Financial and statistical information expected to be discussed on the call will also be available on the Company’s website www.preit.com under the Investor Relations tab in Supplemental Disclosures.
For interested individuals unable to join the conference call, a replay of the call will be available through August 18, 2005, at (877) 519-4471 (domestic) or (973) 341-3080 (international), (Passcode: 6272343). The online archive of the webcast will be available for 14 days following the call.
About Pennsylvania Real Estate Investment Trust
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 and power centers (approximately 32.9 million square feet) located in the eastern United States. PREIT’s portfolio currently consists of 51 properties in 12 states. PREIT’s portfolio includes 37 shopping malls, 13 strip and power centers and one office property. PREIT is headquartered in Philadelphia, Pennsylvania. PREIT's website can be found at www.preit.com.
Definitions
The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations (“FFO”), which is a non-GAAP measure, as income before gains (losses) on sales of property and extraordinary items (computed in accordance with GAAP); plus real estate depreciation; plus or minus adjustments for unconsolidated partnerships to reflect funds from operations on the same basis. FFO is a commonly used measure of operating performance and profitability in the REIT industry, and we use FFO as a supplemental non-GAAP measure to compare our company’s performance to that of our industry peers. In addition, we use FFO as a performance measure for determining bonus amounts earned under certain of our performance-based executive compensation programs. The Company computes FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than the Company. FFO does not include gains (losses) on sale of operating real estate assets, which are included in the determination of net income in accordance with GAAP. Accordingly, FFO is not a comprehensive measure of our operating cash flows. In addition, since FFO does not include depreciation on real estate assets, FFO may not be a useful performance measure when comparing our operating performance to that of other non-real estate commercial enterprises. We compensate for these limitations by using FFO in conjunction with other GAAP financial performance measures, such as net income and net cash provided by operating activities, and other non-GAAP financial performance measures, such as net operating income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company's financial performance, or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity, nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions.
PREIT Reports Second Quarter Results and Progress on Redevelopment Initiatives
August 4, 2005
Page 8
The Company believes that net income is the most directly comparable GAAP measurement to FFO. The Company believes that FFO is helpful to management and investors as a measure of operating performance because it excludes various items included in net income that do not relate to or are not indicative of operating performance, such as various non-recurring items that are considered extraordinary under GAAP, gains on sales of real estate and depreciation and amortization of real estate.
Net operating income ("NOI"), which is a non-GAAP measure, is derived from revenues (determined in accordance with GAAP) minus property operating expenses (determined in accordance with GAAP). Net operating income is a non-GAAP measure. It does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company's financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity; nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions. The Company believes that net income is the most directly comparable GAAP measurement to net operating income.
The Company believes that net operating income is helpful to management and investors as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. Net operating income excludes general and administrative expenses, management company revenues, interest income, interest expense, depreciation and amortization, income from discontinued operations and gains on sales of interests in real estate.
This press release contains certain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. These forward-looking statements reflect PREIT’s current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause future events, achievements or results to differ materially from those expressed by the forward-looking statements. Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the forecast and estimates set forth above, or that PREIT’s returns on its acquisitions will be consistent with the estimates outlined in the related press releases. PREIT’s business is subject to uncertainties regarding the revenues, operating expenses, leasing activities, occupancy rates, and other competitive factors relating to PREIT’s portfolio and changes in local market conditions as well as general economic, financial and political conditions, including the possibility of outbreak or escalation of war or terrorist attacks, any of which may cause future events, achievements or results to differ materially from those expressed by the forward-looking statements. In particular, the successful redevelopment of any property is subject to a number of risks, including, among others, that PREIT’s redevelopment plans might change, its redevelopment activities might be delayed, anticipated project costs may increase, and the Company might not enter into one or more of the leases referred to under “Redevelopment Activity.” Unanticipated expenses or delays would adversely affect PREIT’s investment returns on a redevelopment project. In addition, PREIT might not enter into agreements for, or consummate, either of the mall financings for which it has received commitment letters. PREIT does not intend to and disclaims any duty or obligation to update or revise any forward-looking statements or industry information set forth in this press release to reflect new information, future events or otherwise. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREIT’s Annual Report on Form 10-K for the year ended December 31, 2004.
[Financial Tables Follow]
# # #
** A supplemental quarterly financial package **
will be available on the Company’s web site at www.preit.com.
PREIT Reports Second Quarter Results and Progress on Redevelopment Initiatives
August 4, 2005
Page 9
Pennsylvania Real Estate Investment Trust
Selected Financial Data
FUNDS FROM OPERATIONS
| | Three Months Ended
| | | Six Months Ended
| | |
| (In thousands, except per share amounts) | | June 30, 2005
| | | June 30, 2004
| | | June 30, 2005
| | | June 30, 2004
| | |
| Net income | | $ | 8,897 | | | $ | 11,392 | | | $ | 20,295 | | | $ | 20,355 | | |
| Adjustments: | | | | | | | | | | | | | | | | | |
| Minority interest in Operating Partnership | | | 1,114 | | | | 1,045 | | | | 2,534 | | | | 1,822 | | |
Minority interest in Operating Partnership-discontinued
operations | | | 47 | | | | 229 | | | | 79 | | | | 416 | | |
| Dividends on preferred shares | | | (3,403 | ) | | | (3,403 | ) | | | (6,806 | ) | | | (6,806 | ) | |
| Gains on sales of interests in real estate | | | (636 | ) | | | — | | | | (637 | ) | | | — | | |
| Adjustment to gain on sale of discontinued operations | | | — | | | | — | | | | — | | | | 550 | | |
| Depreciation and amortization: | | | | | | | | | | | | | | | | | |
| Wholly owned & consolidated partnerships | | | 26,956 | | (a) | | 23,590 | | (a) | | 52,585 | | (a) | | 48,857 | | (a) |
| Unconsolidated partnerships | | | 1,033 | | (a) | | 1,141 | | (a) | | 2,184 | | (a) | | 2,219 | | (a) |
| Discontinued operations | | | — | | | | 13 | | | | 13 | | | | 25 | | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| FUNDS FROM OPERATIONS | | $ | 34,008 | | (b) | $ | 34,007 | | (b) | $ | 70,247 | | (b) | $ | 67,438 | | (b) |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| FUNDS FROM OPERATIONS PER SHARE AND OP UNITS | | $ | 0.84 | | | $ | 0.86 | | | $ | 1.73 | | | $ | 1.71 | | |
| | | | | | | | | | | | | | | | | | |
| Weighted average number of shares outstanding | | | 36,025 | | | | 35,517 | | | | 35,999 | | | | 35,460 | | |
| Weighted average effect of full conversion of OP units | | | 4,686 | | | | 4,029 | | | | 4,635 | | | | 3,933 | | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| Total weighted average shares outstanding, including OP units | | | 40,711 | | | | 39,546 | | | | 40,634 | | | | 39,393 | | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| a) | Excludes depreciation of non-real estate assets, amortization of deferred financing costs and discontinued operations. |
| | |
| b) | Includes the non-cash effect of straight-line rents of $996 and $1,218 for the 2nd quarter 2005 and 2004, respectively. and $2,032 and $2,567 for the six months ended June 30, 2005 and 2004, respectively, |
PREIT Reports Second Quarter Results and Progress on Redevelopment Initiatives
August 4, 2005
Page 10
Pennsylvania Real Estate Investment Trust
Selected Financial Data
| | | | | | | | | | | | | | |
STATEMENTS OF INCOME
| | Three Months Ended
| | Six Months Ended
| |
| (In thousands, except per share amounts) | | June 30, 2005
| | June 30, 2004
| | June 30, 2005
| | June 30, 2004
| |
| REVENUE: | | | | | | | | | | | | | |
| Real estate revenues: | | | | | | | | | | | | | |
| Base rent | | $ | 66,586 | | $ | 61,944 | | $ | 132,476 | | $ | 123,203 | |
| Percentage rent | | | 2,156 | | | 1,311 | | | 4,490 | | | 3,484 | |
| Expense reimbursements | | | 30,141 | | | 27,995 | | | 60,690 | | | 56,513 | |
| Lease termination revenue | | | 584 | | | 961 | | | 2,022 | | | 988 | |
| Other real estate revenues | | | 2,284 | | | 2,070 | | | 4,290 | | | 4,001 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Total real estate revenues | | | 101,751 | | | 94,281 | | | 203,968 | | | 188,189 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Management company revenue | | | 1,312 | | | 1,736 | | | 2,751 | | | 3,799 | |
| Interest and other income | | | 254 | | | 432 | | | 444 | | | 685 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Total revenues | | | 103,317 | | | 96,449 | | | 207,163 | | | 192,673 | |
| | |
|
| |
|
| |
|
| |
|
| |
| EXPENSES: | | | | | | | | | | | | | |
| Property operating expenses: | | | | | | | | | | | | | |
| Property payroll and benefits | | | (6,891 | ) | | (5,498 | ) | | (13,476 | ) | | (12,195 | ) |
| Real estate and other taxes | | | (9,989 | ) | | (9,331 | ) | | (19,480 | ) | | (17,903 | ) |
| Utilities | | | (7,549 | ) | | (7,019 | ) | | (14,892 | ) | | (13,341 | ) |
| Other operating expenses | | | (13,593 | ) | | (12,452 | ) | | (28,443 | ) | | (26,484 | ) |
| | |
|
| |
|
| |
|
| |
|
| |
| Total property operating expenses | | | (38,022 | ) | | (34,300 | ) | | (76,291 | ) | | (69,923 | ) |
| | |
|
| |
|
| |
|
| |
|
| |
| Depreciation and amortization | | | (27,483 | ) | | (23,957 | ) | | (53,583 | ) | | (49,526 | ) |
| General and administrative expenses: | | | | | | | | | | | | | |
| Corporate payroll and benefits | | | (6,603 | ) | | (7,226 | ) | | (13,727 | ) | | (15,255 | ) |
| Other general and administrative expenses | | | (4,041 | ) | | (4,316 | ) | | (6,136 | ) | | (6,929 | ) |
| | |
|
| |
|
| |
|
| |
|
| |
| Total general and administrative expenses | | | (10,644 | ) | | (11,542 | ) | | (19,863 | ) | | (22,184 | ) |
| | |
|
| |
|
| |
|
| |
|
| |
| Interest expense | | | (20,086 | ) | | (17,757 | ) | | (39,442 | ) | | (35,565 | ) |
| | |
|
| |
|
| |
|
| |
|
| |
| Total expenses | | | (96,235 | ) | | (87,556 | ) | | (189,179 | ) | | (177,198 | ) |
| Income before equity in income of partnerships, | | | | | | | | | | | | | |
| gains on sales of interests in real estate, minority | | | | | | | | | | | | | |
| interest and discontinued operations | | | 7,082 | | | 8,893 | | | 17,984 | | | 15,475 | |
| Equity in income of partnerships | | | 1,968 | | | 1,648 | | | 3,618 | | | 3,413 | |
| Gains on sales of interests in real estate | | | 636 | | | — | | | 697 | | | — | |
| | |
|
| |
|
| |
|
| |
|
| |
| Income before minority interest and discontinued operations | | | 9,686 | | | 10,541 | | | 22,299 | | | 18,888 | |
| Minority interest in properties | | | (40 | ) | | (147 | ) | | (85 | ) | | (496 | ) |
| Minority interest in Operating Partnership | | | (1,114 | ) | | (1,045 | ) | | (2,534 | ) | | (1,822 | ) |
| | |
|
| |
|
| |
|
| |
|
| |
| Income from continuing operations | | | 8,532 | | | 9,349 | | | 19,680 | | | 16,570 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Discontinued operations: | | | | | | | | | | | | | |
| Operating results from discontinued operations | | | 412 | | | 2,279 | | | 694 | | | 4,766 | |
| Adjustment to gain on sale of discontinued operations | | | — | | | — | | | — | | | (550 | ) |
| Minority interest in properties | | | — | | | (7 | ) | | — | | | (15 | ) |
| Minority interest in Operating Partnership | | | (47 | ) | | (229 | ) | | (79 | ) | | (416 | ) |
| | |
|
| |
|
| |
|
| |
|
| |
| Income from discontinued operations | | | 365 | | | 2,043 | | | 615 | | | 3,785 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Net income | | | 8,897 | | | 11,392 | | | 20,295 | | | 20,355 | |
| Dividends on preferred shares | | | (3,403 | ) | | (3,403 | ) | | (6,806 | ) | | (6,806 | ) |
| | |
|
| |
|
| |
|
| |
|
| |
| Net income available to common shareholders | | $ | 5,494 | | $ | 7,989 | | $ | 13,489 | | $ | 13,549 | |
| | |
|
| |
|
| |
|
| |
|
| |
| BASIC EARNINGS PER SHARE | | | | | | | | | | | | | |
| From continuing operations | | $ | 0.14 | | $ | 0.16 | | $ | 0.34 | | $ | 0.26 | |
| From discontinued operations | | | 0.01 | | | 0.06 | | | 0.02 | | | 0.11 | |
| | |
|
| |
|
| |
|
| |
|
| |
| TOTAL BASIC EARNINGS PER SHARE | | $ | 0.15 | | $ | 0.22 | | $ | 0.36 | | $ | 0.37 | |
| | |
|
| |
|
| |
|
| |
|
| |
| DILUTED EARNINGS PER SHARE | | | | | | | | | | | | | |
| From continuing operations | | $ | 0.13 | | $ | 0.15 | | $ | 0.34 | | $ | 0.26 | |
| From discontinued operations | | | 0.01 | | | 0.06 | | | 0.02 | | | 0.11 | |
| | |
|
| |
|
| |
|
| |
|
| |
| TOTAL DILUTED EARNINGS PER SHARE | | $ | 0.14 | | $ | 0.21 | | $ | 0.36 | | $ | 0.37 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Weighted average number of shares outstanding (diluted) | | | 36,345 | | | 35,737 | | | 36,300 | | | 35,714 | |
| | |
|
| |
|
| |
|
| |
|
| |
PREIT Reports Second Quarter Results and Progress on Redevelopment Initiatives
August 4, 2005
Page 11
Pennsylvania Real Estate Investment Trust
Selected Financial Data
NET OPERATING INCOME
| | Three Months Ended
| | Six Months Ended
| |
| | June 30, 2005
| | June 30, 2004
| | June 30, 2005
| | June 30, 2004
| |
| (In thousands) | | | | | | | | | | | | | |
| Net Income | | $ | 8,897 | | $ | 11,392 | | $ | 20,295 | | $ | 20,355 | |
| | | | | | | | | | | | | | |
| Adjustments: | | | | | | | | | | | | | |
| Depreciation and amortization: | | | | | | | | | | | | | |
| Wholly owned and consolidated partnerships | | | 27,483 | | | 23,957 | | | 53,583 | | | 49,526 | |
| Unconsolidated partnerships | | | 1,033 | | | 1,141 | | | 2,184 | | | 2,219 | |
| Discontinued operations | | | — | | | 13 | | | 13 | | | 25 | |
| Interest Expense | | | | | | | | | | | | | |
| Wholly owned and consolidated partnerships | | | 20,086 | | | 17,757 | | | 39,442 | | | 35,565 | |
| Unconsolidated partnerships | | | 2,037 | | | 2,172 | | | 4,077 | | | 4,223 | |
| Discontinued operations | | | 310 | | | 880 | | | 620 | | | 1,771 | |
| Minority interest in Operating Partnership | | | | | | | | | | | | | |
| Continuing operations | | | 1,114 | | | 1,045 | | | 2,534 | | | 1,822 | |
| Discontinued operations | | | 47 | | | 229 | | | 79 | | | 416 | |
| Minority interest in properties | | | | | | | | | | | | | |
| Continuing operations | | | 40 | | | 147 | | | 85 | | | 496 | |
| Discontinued operations | | | — | | | 7 | | | — | | | 15 | |
| Gains on sales of interests in real estate | | | (636 | ) | | — | | | (697 | ) | | — | |
| Adjustment to gain on sale of discontinued operations | | | — | | | — | | | — | | | 550 | |
| General and administrative expenses | | | 10,644 | | | 11,542 | | | 19,863 | | | 22,184 | |
| Management company revenue | | | (1,312 | ) | | (1,736 | ) | | (2,751 | ) | | (3,799 | ) |
| Interest and other income | | | (254 | ) | | (432 | ) | | (444 | ) | | (685 | ) |
| | |
|
| |
|
| |
|
| |
|
| |
| Property net operating income | | $ | 69,489 | | $ | 68,114 | | $ | 138,883 | | $ | 134,683 | |
| | |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | |
| Same store retail properties | | $ | 63,141 | | $ | 64,673 | | $ | 128,064 | | $ | 128,057 | |
| Same store industrial properties | | | 103 | | | 85 | | | 212 | | | 169 | |
| Non-same store properties | | | 6,245 | | | 3,356 | | | 10,607 | | | 6,457 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Property net operating income | | $ | 69,489 | | $ | 68,114 | | $ | 138,883 | | $ | 134,683 | |
| | |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | |
EQUITY IN INCOME OF PARTNERSHIPS
| | Three Months Ended
| | Six Months Ended
| |
| | June 30, 2005
| | June 30, 2004
| | June 30, 2005
| | June 30, 2004
| |
| (In thousands) | | | | | | | | | | | | | |
| Gross revenues from real estate | | $ | 14,474 | | $ | 14,600 | | $ | 29,007 | | $ | 29,212 | |
| Expenses: | |
|
| |
|
| |
|
| |
|
| |
| Property operating expenses | | | (4,190 | ) | | (4,515 | ) | | (8,900 | ) | | (9,149 | ) |
| Mortgage interest expense | | | (4,136 | ) | | (4,402 | ) | | (8,278 | ) | | (8,590 | ) |
| | | | | | | | | | | | | | |
| Depreciation and amortization | | | (1,983 | ) | | (2,252 | ) | | (4,200 | ) | | (4,392 | ) |
| | |
|
| |
|
| |
|
| |
|
| |
| Total expenses | | | (10,309 | ) | | (11,169 | ) | | (21,378 | ) | | (22,131 | ) |
| | |
|
| |
|
| |
|
| |
|
| |
| Net income from real estate | | | 4,165 | | | 3,431 | | | 7,629 | | | 7,081 | |
| Less: Partners' share | | | (2,125 | ) | | (1,754 | ) | | (3,872 | ) | | (3,584 | ) |
| | |
|
| |
|
| |
|
| |
|
| |
| Company’s share | | | 2,040 | | | 1,677 | | | 3,757 | | | 3,497 | |
| Amortization of excess investment | | | (72 | ) | | (29 | ) | | (139 | ) | | (84 | ) |
| | |
|
| |
|
| |
|
| |
|
| |
| EQUITY IN INCOME OF PARTNERSHIPS | | $ | 1,968 | | $ | 1,648 | | $ | 3,618 | | $ | 3,413 | |
| | |
|
| |
|
| |
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PREIT Reports Second Quarter Results and Progress on Redevelopment Initiatives
August 4, 2005
Page 12
Pennsylvania Real Estate Investment Trust
Selected Financial Data
CONSOLIDATED BALANCE SHEET | | | | | | | |
| | June 30, 2005
| | December 31, 2004
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| (In thousands) | | | | | | | |
| ASSETS: | | | | | | | |
| INVESTMENTS IN REAL ESTATE, at cost: | | | | | | | |
| Retail properties | | $ | 2,620,354 | | $ | 2,510,256 | |
| Land held for development | | | 5,938 | | | 9,863 | |
| Construction in progress | | | 36,182 | | | 10,952 | |
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| Total investments in real estate | | | 2,662,474 | | | 2,531,071 | |
| Less: accumulated depreciation | | | (185,058 | ) | | (148,759 | ) |
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| NET INVESTMENTS IN REAL ESTATE | | | 2,477,416 | | | 2,382,312 | |
| INVESTMENTS IN PARTNERSHIPS, at equity | | | 27,282 | | | 27,244 | |
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| | | | 2,504,698 | | | 2,409,556 | |
| OTHER ASSETS: | | | | | | | |
| Assets held for sale | | | 17,498 | | | 15,321 | |
| Cash and cash equivalents | | | 25,719 | | | 40,044 | |
| Rents and other receivables (net of allowance for doubtful accounts | | | | | | | |
| of $9,787 and $9,394, at June 30, 2005 | | | | | | | |
| and December 31, 2004, respectively) | | | 31,626 | | | 31,982 | |
| Intangible assets (net of accumulated amortization of $53,844 and | | | | | | | |
| $38,333 at June 30, 2005 and December 31, 2004, respectively) | | | 174,376 | | | 171,850 | |
| Deferred costs and other assets, net | | | 65,200 | | | 62,650 | |
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| Total assets | | $ | 2,819,117 | | $ | 2,731,403 | |
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| LIABILITIES | | | | | | | |
| Mortgage notes payable | | $ | 1,112,318 | | $ | 1,145,079 | |
| Debt premium on mortgage notes payable | | | 49,163 | | | 56,135 | |
| Bank loan payable | | | 431,000 | | | 271,000 | |
| Liabilities related to assets held for sale | | | 18,437 | | | 18,564 | |
| Tenants' deposits and deferred rents | | | 12,876 | | | 13,457 | |
| Investments in partnerships, deficit balances | | | 14,548 | | | 13,758 | |
| Accrued expenses and other liabilities | | | 67,136 | | | 76,975 | |
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| Total liabilities | | | 1,705,478 | | | 1,594,968 | |
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| MINORITY INTEREST | | | | | | | |
| Minority interest in properties | | | 3,309 | | | 3,585 | |
| Minority interest in Operating Partnership | | | 136,782 | | | 128,384 | |
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| Total minority interest | | | 140,091 | | | 131,969 | |
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| SHAREHOLDERS' EQUITY | | | | | | | |
| Shares of beneficial interest, $1.00 par value per share; 100,000,000 shares | | | | | | | |
| authorized; issued and outstanding 36,512,000 shares at June 30, 2005 | | | | | | | |
| and 36,272,000 shares at December 31, 2004 | | | 36,512 | | | 36,272 | |
| Non-convertible senior preferred shares, 11% cumulative, $.01 par value | | | | | | | |
| per share; 2,475,000 shares authorized, issued and outstanding | | | | | | | |
| at June 30, 2005 and December 31, 2004 | | | 25 | | | 25 | |
| Capital contributed in excess of par | | | 907,957 | | | 899,506 | |
| Deferred compensation | | | (15,194 | ) | | (7,737 | ) |
| Accumulated other comprehensive loss | | | (6,961 | ) | | (1,821 | ) |
| Retained earnings | | | 51,209 | | | 78,221 | |
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| Total shareholders' equity | | | 973,548 | | | 1,004,466 | |
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| Total liabilities, minority interest and shareholders' equity | | $ | 2,819,117 | | $ | 2,731,403 | |
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