Pennsylvania Real Estate Investment Trust 8K Results of Operations and Financial Condition | PRET 22 Mar 23

Exhibit 99.1

Supplemental Financial and Operating Information

December 31, 2022

www.preit.com

OTCQB: PRET

OTCQB: PRETL, PRETM, PRETN

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

December 31, 2022


Table of Contents
Introduction

Company Information	1

Earnings Release	2

Changes in Funds from Operations (FFO) for the Three Months and Year Ended December 31, 2022	5

Market Capitalization and Capital Resources	6

Operating Results

Statements of Operations – Three Months and Year Ended December 31, 2022 and 2021	7

Computation of Earnings Per Share - Three Months and Year Ended December 31, 2022 and 2021	8

Reconciliation of Net Operating Income (NOI) and EBITDAre (Non-GAAP Measures) – Three Months and Year Ended December 31, 2022 and 2021	9

Reconciliation of Net Loss (GAAP Measure) to Net Operating Income (NOI) from Consolidated Properties (Non-GAAP Measure) - Three Months Ended December 31, 2022 and 2021	10

Reconciliation of Equity in (Loss) Income of Partnerships (GAAP Measure) to Net Operating Income (NOI) from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Three Months Ended December 31, 2022 and 2021	11

Reconciliation of Net Loss (GAAP Measure) to Net Operating Income (NOI) from Consolidated Properties (Non-GAAP Measure) - Year Ended December 31, 2022 and 2021	12

Reconciliation of Equity in (Loss) Income of Partnerships (GAAP Measure) to Net Operating Income (NOI) from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Year Ended December 31, 2022 and 2021	13

Reconciliation of Net Loss (GAAP Measure) to Funds From Operations (FFO) and Funds Available for Distribution (FAD) (Non-GAAP Measures) – Three Months and Year Ended December 31, 2022 and 2021	14

Condensed Consolidated Balance Sheets	15

Assets and Liabilities - Equity Method Investments, at Ownership Share (Non-GAAP Measure)	16

Operating Statistics

Leasing Activity Summary – Three Months and Year Ended December 31, 2022	17

Summarized Sales and Rent Per Square Foot and Occupancy Percentages	19

Mall Occupancy Percentage and Sales Per Square Foot	20

Top Twenty Tenants as of December 31, 2022	21

Lease Expirations as of December 31, 2022	22

Property Information as of December 31, 2022	23

Balance Sheet

Investment in Real Estate - Consolidated Properties	26

Investment in Real Estate - Equity Method Investments at Ownership Share	27

Capital Expenditures – Three Months and Year Ended December 31, 2022	28

Debt Analysis as of December 31, 2022	29

Debt Schedule as of December 31, 2022	31

Selected Debt Ratios	32

Forward Looking Statements	33

Definitions	34

Pennsylvania Real Estate Investment Trust

Company Information

Background

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

If you would like to learn more about PREIT or participate in our quarterly earnings conference call, please visit preit.com or contact:

Mario Ventresca

EVP & CFO

One Commerce Square

2005 Market Street, Suite 1000

Philadelphia, PA 19103

Telephone: (215) 875-0703

Heather Crowell

heather@gregoryfca.com

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

CONTACT: AT THE COMPANY

Mario Ventresca

EVP & CFO

(215) 875-0703

INVESTOR RELATIONS

Heather Crowell

heather@gregoryfca.com

PREIT Reports Fourth Quarter and Full Year 2022 Results

Core Mall Total Occupancy Grew to 94.8%

Core Mall Non-Anchor Occupancy Increased 240 Basis Points to 92.1%

Core Mall Sales Per Square Foot Were $606 in January, Growing 1.7% Over December 2022

Average Renewal Spreads Were 1.1% for the Year Ended December 31, 2022

Philadelphia, March 22, 2023 - PREIT (OTC:PRET) today reported results for the three months and year ended December 31, 2022. A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is provided in the tables accompanying this release.


	Three Months Ended December 31,						Year Ended December 31,
(per share amounts)	2022			2021			2022			2021
Net loss - basic and diluted	$	(7.81	)	$	(6.52	)	$	(33.06	)	$	(30.56	)
FFO	$	(0.93	)	$	2.50		$	(0.55	)	$	0.81
FFO, as adjusted	$	(0.88	)	$	2.40		$	(1.18	)	$	(0.56	)

“As we reflect on our performance, we are pleased with what the team accomplished in the face of increasing economic pressure facing businesses and consumers, delivering new-to-portfolio tenants and robust leasing results including diverse uses and raising capital through opportunistic asset sales,” said Joseph F. Coradino, Chairman and CEO of PREIT. “In spite of the macroeconomic pressures, the prognosis for retail remains positive. The consumer has rediscovered the enclosed mall and is embracing the new experiences we are offering."

•

Same Store NOI, excluding lease termination revenue, decreased 7.7% and 0.3% for the three months and year ended December 31, 2022 compared to the same periods ended December 31, 2021, respectively, driven by outsized credit recoveries in 2021 and an increase in operating costs.

•

Robust leasing activity is driving increased occupancy with Core Mall Total Occupancy increasing by 150 basis points to 94.8% compared to the year ended December 31, 2021. Core Mall non-anchor Occupancy improved 240 basis points to 92.1% compared to the year ended December 31, 2021.

•

Core Mall total leased space, at 95.7%, exceeds occupied space by 90 basis points, and Core Mall non-anchor leased space, at 93.4%, is higher than occupied space by 130 basis points when including executed new leases slated for future occupancy, demonstrating the rapid pace of leasing activity.

•

For the rolling 12 month period ended December 31, 2022, core mall comparable sales grew to $596 per square foot, compared to $539 in 2019. Comparable sales demonstrated further improvement in January, rising to $606 per square foot.

•

Average renewal spreads for the three months and year ended December 31, 2022 were -5.6% and 1.1%, respectively.

•

The Company made notable advances in its capital-raising efforts, including the sale of Cumberland Mall and several outparcels. Since the beginning of 2022, the Company sold assets generating just over $141 million in gross proceeds. As part of its debt reduction plan, the Company has applied asset sale proceeds and excess cash from operations to pay down debt by $184 million through January 31, 2023.

Leasing and Redevelopment

•

337,000 square feet of leases are signed for future openings, which is expected to contribute annualized gross rent of over $7.4 million.

•

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

•

Tilted 10 opened Phase I of its planned two-level indoor family entertainment center at Willow Grove Park in March, adding family entertainment to this locally-loved destination shopping experience. The balance of the facility is expected to open in spring 2023.

•

At Moorestown Mall, construction is underway for the new state-of-the-art Cooper University Healthcare facility and the 375-unit Pearl apartment development, following completion of the sale of land in the second quarter of 2022.

•

Tenant construction is underway for a new prototype, 32,000 square foot, LEGO® Discovery Center at Springfield Town Center with expected opening in third quarter 2023. Burlington has also executed a lease for a 30,000 square foot location with an anticipated opening later this year. Approvals were obtained for the development of 460 apartments and a 165-room hotel, setting the stage for sale of these parcels in summer 2023.

Primary Factors Affecting Financial Results for the Three Months Ended December 31, 2022 and 2021

•

Net loss attributable to PREIT common shareholders was $41.5 million (which takes into consideration the accrual of preferred dividends that accumulated during the quarter but have not been paid), or $(7.81) per basic and diluted share for the three months ended December 31, 2022, compared to net loss attributable to PREIT common shareholders of $34.5 million, or $(6.52) per basic and diluted share for the three months ended December 31, 2021.

•

Funds from Operations decreased in the three months ended December 31, 2022 compared to the prior year period primarily due to lower NOI from Same Store properties as a result of declines in expense recoveries and sales, Non-Same Store properties as a result of the sale of our interest in Gloucester Premium Outlets and Cumberland Mall as well as higher interest expense.

•

FFO for the three months ended December 31, 2022 was $(0.93) per diluted share and OP Unit compared to $2.50 per diluted share and OP Unit for the three months ended December 31, 2021.

All NOI and FFO amounts referenced as primary factors affecting financial results above include our share of unconsolidated properties’ revenues and expenses. Additional information regarding changes in operating results for the three months and year ended December 31, 2022 and 2021 is included on page 15.

Liquidity and Financing Activities

As of December 31, 2022, the Company had $107.5 million available under its First Lien Revolving Credit Facility. The Company’s corporate cash balances, when combined with available credit, provide total liquidity of $119.9 million. The Company extended the maturity date of its Credit Facilities to December 10, 2023 and is pursuing all available alternatives to address this upcoming maturity.

Additionally, the Fashion District Philadelphia partnership has continued to fund required paydowns of the Fashion District Philadelphia mortgage.

Asset Dispositions

During the quarter, the Company executed on the sale of Cumberland Mall for $44.6 million in gross proceeds, facilitating the repayment of the $39.0 million mortgage loan balance.

The Company also completed the sale of a former department store space at Valley View Mall for gross proceeds of $2.6 million.

Subsequent to the end of the quarter, the Company closed on the sale of its Whole Foods parcel at Plymouth Meeting Mall for $27 million.

2023 Outlook

The Company is not issuing detailed guidance at this time.

Conference Call Information

Management has scheduled a conference call for 11:00 a.m. Eastern Time on Wednesday, March, 22 2023, to review the Company’s results and future outlook. To listen to the call, please dial 1(888) 330-2024 (domestic toll free), or 1(646) 960-0187 (international), and request to join the PREIT call, Conference ID 9326912, at least fifteen minutes before the scheduled start time as callers could experience delays. Investors can also access the call in a "listen only" mode via the internet at the Company’s website, preit.com. Please allow extra time prior to the call to visit the site and download the necessary software to listen to the Internet broadcast. Financial and statistical information expected to be discussed on the call will also be available on the Company’s website.

For interested individuals unable to join the conference call, the online archive of the webcast will also be available for one year following the call.

About PREIT

PREIT (OTC:PRET) is a publicly traded real estate investment trust that owns and manages innovative properties developed to be thoughtful, community-centric hubs. PREIT's robust portfolio of carefully curated, ever-evolving properties generates success for its tenants and meaningful impact for the communities it serves by keenly focusing on five core areas of established and emerging opportunity: multi-family & hotel, health & tech, retail, essentials & grocery and experiential. Located primarily in densely-populated regions, PREIT is a top operator of high quality, purposeful places that serve as one-stop destinations for customers to shop, dine, play and stay. Additional information is available at www.preit.com or on Twitter, Instagram or LinkedIn.

Rounding

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

Pennsylvania Real Estate Investment Trust

Changes in Funds from Operations (1)

For the Three Months and Year Ended December 31, 2022 as compared to the Three Months and Year Ended December 31, 2021

(all per share amounts on a diluted basis unless otherwise noted; rounded to the nearest half penny; amounts may not total due to rounding)


(in thousands, except per share amounts)	Three Months Ended December 31, 2022			Per Diluted Share and OP Unit			Year Ended December 31, 2022			Per Diluted Share and OP Unit
Funds from Operations, as adjusted December 31, 2021	$	13,055		$	2.40		$	(3,018	)	$	(0.56	)

Changes - Q4 2021 to Q4 2022

Contribution from anchor replacements and new box tenants		593			0.11			1,575			0.29
Impact from bankruptcies		(12	)		-			179			0.04
Other leasing activity, including base rent and net CAM and real estate tax recoveries		(1,638	)		(0.30	)		1,193			0.22
Lease termination revenue		803			0.15			1,003			0.19
Credit losses		(1,389	)		(0.26	)		(1,992	)		(0.37	)
Other		(2,364	)		(0.43	)		(3,800	)		(0.70	)
Same Store NOI(1) from unconsolidated properties		(97	)		(0.02	)		195			0.04
Same Store NOI		(4,104	)		(0.75	)		(1,647	)		(0.29	)
Non Same Store NOI		(2,646	)		(0.49	)		(30,572	)		(5.63	)
General and administrative expenses		(1,816	)		(0.34	)		5,810			1.07
Capitalization of leasing costs		(145	)		(0.03	)		(34	)		(0.01	)
Other		1,041			0.18			40,406			7.43
Interest expense, net		(10,106	)		(1.85	)		(17,304	)		(3.19	)
Funds from Operations, as adjusted December 31, 2022		(4,721	)		(0.88	)		(6,359	)		(1.18	)
Provision for employee separation expense		(283	)		(0.05	)		(277	)		(0.05	)
Insurance recoveries		(5	)		-			(7	)		-
Gain on sale of preferred equity interest		-			-			3,688			0.68
Funds from Operations, December 31, 2022	$	(5,009	)	$	(0.93	)	$	(2,955	)	$	(0.55	)

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

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands)


	December 31, 2022			December 31, 2021
MARKET CAPITALIZATION

EQUITY CAPITALIZATION
Common Shares Outstanding		5,356			5,347
OP Units Outstanding		69			69
Total Common Shares and OP Units Outstanding		5,425			5,416
Equity Market Capitalization—Common Shares and OP Units	$	6,347		$	82,855
Series B Preferred Shares, Nominal Value		86,250			86,250
Series C Preferred Shares, Nominal Value		172,500			172,500
Series D Preferred Shares, Nominal Value		125,000			125,000
Total Equity Market Capitalization	$	390,097		$	466,605


DEBT CAPITALIZATION
Secured Debt Balance (1)	$	2,112,693		$	2,253,673

TOTAL MARKET CAPITALIZATION	$	2,502,790		$	2,720,278

Equity Capitalization/Total Market Capitalization		15.6	%		17.2	%
Debt Capitalization/Total Market Capitalization		84.4	%		82.8	%


CAPITAL RESOURCES
Cash and Cash Equivalents	$	36,945		$	69,043
Revolving Facility		130,000			130,000
Amount Outstanding		(22,481	)		(54,549	)
Available Revolving Facility (2)		107,519			75,451
Term Loans		1,138,404			1,120,751
Amount Borrowed		(1,138,404	)		(1,120,751	)
Available Term Loans		-			-
TOTAL	$	144,464		$	144,494

(1) Includes all consolidated mortgages, term loans, and revolving credit facility, as well as our share of mortgage debt from unconsolidated equity method investments, which includes $52.2 million and $97.3 million of secured debt from our share of the FDP Term Loans as of December 31, 2022 and December 31, 2021 and $107.0 million and $57.8 million from our share of the FDP Partnership Loan as of December 31, 2022 and December 31, 2021, respectively.

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

Pennsylvania Real Estate Investment Trust

Statements of Operations – Three Months and Year Ended December 31, 2022 and 2021

(unaudited)


	For the Three Months Ended December 31,						For the Year Ended December 31,
(in thousands of dollars)	2022			2021			2022			2021
REVENUE:
Real estate revenue:
Lease revenue	$	73,277		$	76,502		$	271,750		$	270,065
Expense reimbursements		4,633			4,078			17,856			16,514
Other real estate revenue		2,418			4,462			5,719			9,290
Total real estate revenue		80,328			85,042			295,325			295,869
Other income		325			131			702			561
Total revenue		80,653			85,173			296,027			296,430
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes		(26,515	)		(26,034	)		(107,026	)		(105,933	)
Utilities		(3,350	)		(2,901	)		(14,819	)		(12,473	)
Other property operating expenses		(2,884	)		(2,596	)		(9,469	)		(9,176	)
Total property operating expenses		(32,749	)		(31,531	)		(131,314	)		(127,582	)
Depreciation and amortization		(27,559	)		(29,319	)		(113,083	)		(117,986	)
General and administrative expenses		(11,567	)		(9,751	)		(43,760	)		(49,570	)
Other (expenses) income		(307	)		(130	)		(451	)		55
Total operating expenses		(72,182	)		(70,731	)		(288,608	)		(295,083	)
Interest expense, net (1)		(41,287	)		(32,896	)		(141,760	)		(128,031	)
Gain on debt extinguishment, net		—			—			—			4,587
Impairment of assets		(1,831	)		(8,374	)		(44,101	)		(9,938	)
Reorganization expenses		—			—			—			(267	)
Total expenses		(115,300	)		(112,001	)		(474,469	)		(428,732	)
Equity in loss of partnerships (2)		(2,206	)		(1,303	)		(6,145	)		(3,732	)
Gain (loss) on sales of interests in real estate		1,696			11			10,829			(1,180	)
Gain (loss) on sale of equity method investment		(77	)		—			8,976			—
Gain (loss) on sales of real estate by equity method investee		—			—			—			1,337
Gain on sales of non operating real estate		—			10			10,527			10
Gain on sale of preferred equity interest		—			—			3,688			—
Net loss		(35,234	)		(28,110	)		(150,567	)		(135,867	)
Less: net loss attributable to noncontrolling interest		530			443			2,248			3,130
Net loss attributable to PREIT		(34,704	)		(27,667	)		(148,319	)		(132,737	)
Less: preferred share dividends		(6,844	)		(6,844	)		(27,375	)		(27,375	)
Net loss attributable to PREIT common shareholders	$	(41,548	)	$	(34,511	)	$	(175,694	)	$	(160,112	)

(1) Net of capitalized interest expense of $73 thousand and $8 thousand for the three months ended December 31, 2022 and 2021, respectively and $0.2 million and $0.2 million for the year ended December 31, 2022 and 2021, respectively.

(2) Equity in loss of partnerships is net of capitalized interest expense of $0 and $9 thousand for the three months ended December 31, 2022 and 2021, respectively, and $8 thousand and $0.3 million for the year ended December 31, 2022 and 2021, respectively.

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share – Three Months and Year Ended December 31, 2022 and 2021

(unaudited)


	For the Three Months Ended December 31,						For the Year Ended December 31,
(in thousands, except per share amounts)	2022			2021			2022			2021
Net loss used to calculate loss per share—basic and diluted	$	(41,548	)	$	(34,511	)	$	(175,693	)	$	(160,112	)
Basic and diluted loss per share:	$	(7.81	)	$	(6.52	)	$	(33.06	)	$	(30.56	)

Weighted average shares outstanding—basic		5,317			5,292			5,314			5,240
Effect of common share equivalents(1)		—			—			—			—
Weighted average shares outstanding—diluted		5,317			5,292			5,314			5,240

(1) The Company had net losses used to calculate earnings per share for the three months and year ended December 31, 2022 and 2021. Therefore, the effects of common share equivalents are excluded from the calculation of diluted loss per share for these periods because they would be antidilutive.

Pennsylvania Real Estate Investment Trust

Reconciliation of Net Operating Income and Earnings Before Interest, Income Taxes, Depreciation, and Amortization for Real Estate (Non-GAAP Measures) - Three Months and Year Ended December 31, 2022 and 2021

(in thousands)

Net Operating Income ("NOI") Reconciliation for the Three Months Ended December 31, 2022 and 2021 (1)


	Same Store				Change						Non Same Store					Total
(in thousands of dollars)	2022		2021		$			%			2022			2021		2022		2021
NOI from consolidated properties	$	47,211	$	51,218	$	(4,007	)		(7.8	%)	$	369		$	2,293	$	47,580	$	53,511
NOI attributable to equity method investments, at ownership share		7,888		7,985		(97	)		(1.2	%)		(14	)		708		7,874		8,693
Total NOI		55,099		59,203		(4,104	)		(6.9	%)		355			3,001		55,454		62,204
Less: lease termination revenue		852		403		449			111.4	%		-			177		852		580
Total NOI excluding lease termination revenue	$	54,247	$	58,800	$	(4,553	)		(7.7	%)	$	355		$	2,824	$	54,602	$	61,624

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

Net Operating Income ("NOI") Reconciliation for the Year Ended December 31, 2022 and 2021 (1)


	Same Store				Change						Non Same Store				Total
(in thousands of dollars)	2022		2021		$			%			2022		2021		2022		2021
NOI from consolidated properties	$	160,234	$	162,076	$	(1,842	)		(1.1	%)	$	3,778	$	6,211	$	164,012	$	168,287
NOI attributable to equity method investments, at ownership share		29,679		29,484		195			0.7	%		1,146		2,686		30,825		32,170
Total NOI		189,913		191,560		(1,647	)		(0.9	%)		4,924		8,897		194,837		200,457
Less: lease termination revenue		3,247		4,306		(1,059	)		(24.6	%)		49		323		3,296		4,629
Total NOI excluding lease termination revenue	$	186,666	$	187,254	$	(588	)		(0.3	%)	$	4,875	$	8,574	$	191,541	$	195,828

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

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


	Three Months Ended December 31,						Year Ended December 31,
	2022			2021			2022			2021
Net loss	$	(35,235	)	$	(28,109	)	$	(150,566	)	$	(135,867	)
Depreciation and amortization:
Consolidated		27,559			29,319			113,083			117,986
Unconsolidated properties at ownership share		2,705			4,322			11,378			13,577
Interest expense:
Consolidated		41,287			32,896			141,760			128,031
Unconsolidated properties at ownership share		7,328			5,613			25,412			21,837
(Gain) loss on sales of interests in real estate		(1,696	)		(11	)		(10,829	)		1,180
(Gain) loss on sale of equity method investment		77			-			(8,976	)		-
(Gain) loss on sales of real estate by equity method investee		-			-			-			(1,337	)
Gain on debt extinguishment, net		-			-			-			(4,587	)
Impairment of assets		1,831			8,374			44,101			9,938
EBITDAre	$	43,856		$	52,404		$	165,363		$	150,758

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

Pennsylvania Real Estate Investment Trust

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

Three Months Ended December 31, 2022 and 2021

(in thousands)


	Three Months Ended December 31,
	2022			2021
Net loss	$	(35,235	)	$	(28,109	)
Other income		(325	)		(131	)
Depreciation and amortization		27,559			29,319
General and administrative expenses		11,568			9,751
Other (expenses) income		308			129
Interest expense, net		41,287			32,896
Equity in loss of partnerships		2,206			1,303
Impairment of assets		1,831			8,374
(Gain) loss on sales of interests in real estate		(1,696	)		(11	)
Loss on sale of equity method investment		77			-
Gain on sales of non operating real estate		-			(10	)
NOI from consolidated properties (1)	$	47,580		$	53,511

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


	Same Store						Non Same Store						Total
	2022			2021			2022			2021			2022			2021
Real estate revenue
Base rent	$	50,565		$	49,237		$	1,564		$	3,069		$	52,129		$	52,306
CAM reimbursement income		8,233			8,255			226			424			8,459			8,679
Real estate tax income		6,220			7,305			116			307			6,336			7,612
Percentage rent		5,655			5,981			19			337			5,674			6,318
Lease termination revenue		848			45			-			177			848			222
		71,521			70,823			1,925			4,314			73,446			75,137
Less: credit losses		(190	)		1,199			21			166			(169	)		1,365
Lease revenue		71,331			72,022			1,946			4,480			73,277			76,502
Expense reimbursements		4,489			3,790			144			288			4,633			4,078
Other real estate revenue		2,114			4,174			305			288			2,419			4,462
Total real estate revenue		77,934			79,986			2,395			5,056			80,329			85,042
Property operating expenses																	-
CAM and real estate taxes		(24,839	)		(23,725	)		(1,677	)		(2,308	)		(26,516	)		(26,033	)
Utilities		(3,180	)		(2,643	)		(170	)		(257	)		(3,350	)		(2,900	)
Other property operating expenses		(2,704	)		(2,400	)		(179	)		(198	)		(2,883	)		(2,598	)
Total property operating expenses		(30,723	)		(28,768	)		(2,026	)		(2,763	)		(32,749	)		(31,531	)
NOI from consolidated properties(1)		47,211			51,218			369			2,293			47,580			53,511
Less: Lease termination revenue		848			45			-			177			848			222
NOI from consolidated properties excluding lease termination revenue(1)	$	46,363		$	51,173		$	369		$	2,116		$	46,732		$	53,289
% change in Same Store NOI from consolidated properties excluding lease termination revenue				(9.4%)

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

Pennsylvania Real Estate Investment Trust

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

Three Months Ended December 31, 2022 and 2021

(in thousands)


	Three Months Ended December 31,
(in thousands of dollars)	2022			2021
Equity in loss of partnerships	$	(2,206	)	$	(1,303	)
Depreciation and amortization		2,705			4,322
Interest expense and other expenses, net		7,376			5,674
NOI from equity method investments at ownership share(1)	$	7,875		$	8,693

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


	Same Store						Non Same Store						Total
	2022			2021			2022			2021			2022			2021
Real estate revenue
Base rent	$	7,899		$	7,992		$	8		$	575		$	7,907		$	8,567
CAM reimbursement income		1,868			1,814			-			147			1,868			1,961
Real estate tax income		1,012			2,109			-			103			1,012			2,212
Percentage rent		323			727			99			394			422			1,121
Lease termination revenue		4			358			-			-			4			358
		11,106			13,000			107			1,219			11,213			14,219
Less: credit losses		(113	)		(174	)		-			(5	)		(113	)		(179	)
Lease revenue		10,993			12,826			107			1,214			11,100			14,040
Expense reimbursements		704			771			-			97			704			868
Other real estate revenue		1,423			1,287			-			(42	)		1,423			1,245
Total real estate revenue		13,120			14,884			107			1,269			13,227			16,153
Property operating expenses
CAM and real estate taxes		(4,077	)		(5,147	)		(61	)		(387	)		(4,138	)		(5,534	)
Utilities		(384	)		(966	)		-			(45	)		(384	)		(1,011	)
Other property operating expenses		(771	)		(786	)		(60	)		(129	)		(831	)		(915	)
Total property operating expenses		(5,232	)		(6,899	)		(121	)		(561	)		(5,353	)		(7,460	)
NOI from equity method investments at ownership share(1)		7,888			7,985			(14	)		708			7,874			8,693
Less: Lease termination revenue		4			358			-			-			4			358
NOI from equity method investments at ownership share excluding lease termination revenue(1)	$	7,884		$	7,627		$	(14	)	$	708		$	7,870		$	8,335
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				3.4%

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

Pennsylvania Real Estate Investment Trust

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

Year Ended December 31, 2022 and 2021

(in thousands)


	Year Ended December 31,
	2022			2021

Net loss	$	(150,566	)	$	(135,867	)
Other income		(702	)		(561	)
Depreciation and amortization		113,083			117,986
General and administrative expenses		43,760			49,570
Other (expenses) income		451			(55	)
Interest expense, net		141,760			128,031
Impairment of assets		44,101			9,938
Equity in loss of partnerships		6,145			3,732
Gain on debt extinguishment, net		-			(4,587	)
(Gain) loss on sales of interests in real estate		(10,829	)		1,180
Gain on sale of equity method investment		(8,976	)		-
Gain on sales of real estate by equity method investee		-			(1,337	)
Reorganization expenses		-			267
Gain on sale of preferred equity interest		(3,688	)		-
Gain on sales of interest in non operating real estate		(10,527	)		(10	)
NOI from consolidated properties(1)	$	164,012		$	168,287

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


	Same Store						Non Same Store						Total
	2022			2021			2022			2021			2022			2021
Real estate revenue
Base rent	$	189,707		$	183,353		$	9,672		$	12,481		$	199,379		$	195,834
CAM reimbursement income		32,347			32,107			1,451			1,718			33,798			33,825
Real estate tax income		26,581			26,874			1,086			1,301			27,667			28,175
Percentage rent		7,576			7,490			210			409			7,786			7,899
Lease termination revenue		2,397			1,394			40			315			2,437			1,709
		258,608			251,218			12,459			16,224			271,067			267,442
Less: credit losses		549			2,541			135			83			684			2,624
Lease revenue		259,157			253,759			12,594			16,307			271,751			270,066
Expense reimbursements		16,839			15,322			1,017			1,192			17,856			16,514
Other real estate revenue		5,212			8,592			507			697			5,719			9,289
Total real estate revenue		281,208			277,673			14,118			18,196			295,326			295,869
Property operating expenses																	-
CAM and real estate taxes		(98,561	)		(95,961	)		(8,465	)		(9,972	)		(107,026	)		(105,933	)
Utilities		(13,716	)		(11,359	)		(1,103	)		(1,115	)		(14,819	)		(12,474	)
Other property operating expenses		(8,698	)		(8,277	)		(772	)		(898	)		(9,470	)		(9,175	)
Total property operating expenses		(120,975	)		(115,597	)		(10,340	)		(11,985	)		(131,315	)		(127,582	)
NOI from consolidated properties(1)		160,234			162,076			3,778			6,211			164,012			168,287
Less: Lease termination revenue		2,397			1,394			40			315			2,437			1,709
NOI from consolidated properties excluding lease termination revenue(1)	$	157,837		$	160,682		$	3,738		$	5,896		$	161,575		$	166,578
% change in Same Store NOI from consolidated properties excluding lease termination revenue				(1.8%)

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

Pennsylvania Real Estate Investment Trust

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

Year Ended December 31, 2022 and 2021

(in thousands)


	Year Ended December 31,
(in thousands of dollars)	2022			2021
Equity in loss of partnerships	$	(6,145	)	$	(3,732	)
Depreciation and amortization		11,378			13,577
Impairment of assets		-			265
Interest expense and other expenses, net		25,592			22,060
NOI from equity method investments at ownership share(1)	$	30,825		$	32,170

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


	Same Store						Non Same Store						Total
	2022			2021			2022			2021			2022			2021
Real estate revenue
Base rent	$	31,110		$	29,844		$	1,124		$	2,224		$	32,234		$	32,068
CAM reimbursement income		7,605			7,470			288			567			7,893			8,037
Real estate tax income		3,898			4,791			213			431			4,111			5,222
Percentage rent		1,092			1,394			564			919			1,656			2,313
Lease termination revenue		850			2,912			9			8			859			2,920
		44,555			46,411			2,198			4,149			46,753			50,560
Less: credit losses		(14	)		(452	)		(20	)		20			(34	)		(432	)
Lease revenue		44,541			45,959			2,178			4,169			46,719			50,128
Expense reimbursements		2,751			2,077			195			426			2,946			2,503
Other real estate revenue		2,884			2,668			35			235			2,919			2,903
Total real estate revenue		50,176			50,704			2,408			4,830			52,584			55,534
Property operating expenses
CAM and real estate taxes		(15,526	)		(16,615	)		(766	)		(1,377	)		(16,292	)		(17,992	)
Utilities		(2,171	)		(1,829	)		(94	)		(185	)		(2,265	)		(2,014	)
Other property operating expenses		(2,801	)		(2,776	)		(402	)		(582	)		(3,203	)		(3,358	)
Total property operating expenses		(20,497	)		(21,220	)		(1,262	)		(2,144	)		(21,759	)		(23,364	)
NOI from equity method investments at ownership share(1)		29,679			29,484			1,146			2,686			30,825			32,170
Less: Lease termination revenue		850			2,912			9			8			859			2,920
NOI from equity method investments at ownership share excluding lease termination revenue(1)	$	28,829		$	26,572		$	1,137		$	2,678		$	29,966		$	29,250
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				8.5%

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

Pennsylvania Real Estate Investment Trust

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

Three Months and Year Ended December 31, 2022 and 2021

(in thousands, except per share amounts)


	Three Months Ended December 31,						Year Ended December 31,
	2022			2021			2022			2021
FUNDS FROM OPERATIONS (1)

Net loss	$	(35,235	)	$	(28,109	)	$	(150,566	)	$	(135,867	)
Depreciation and amortization on real estate:
Consolidated properties		27,309			28,993			111,937			116,646
PREIT's share of equity method investments		2,705			4,320			11,378			13,577
(Gain) loss on sales of interests in real estate		(1,696	)		(11	)		(10,829	)		1,180
(Gain) loss on sale of equity method investment		77			-			(8,976	)
(Gain) loss on sales of real estate by equity method investee		-			-			-			(1,337	)
Impairment of Assets:
Consolidated properties		1,831			8,374			44,101			9,938
PREIT's share of equity method investments		-			-			-			264
Funds from operations attributable to common shareholders and OP Unit holders(1)		(5,009	)		13,567			(2,955	)		4,401
(Benefit) provision for employee separation expenses		283			25			277			305
(Gain) on hedge ineffectiveness		-			(537	)		-			(2,735	)
(Gain) on debt extinguishment, net		-			-			-			(4,587	)
Insurance recoveries, net		5			-			7			(669	)
(Gain) on sale of preferred equity interest		-			-			(3,688	)		-
Reorganization expenses		-			-			-			267
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders	$	(4,721	)	$	13,055		$	(6,359	)	$	(3,018	)

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


FUNDS AVAILABLE FOR DISTRIBUTION(1)

Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders(1)	$	(4,721	)	$	13,055		$	(6,359	)	$	(3,018	)
Adjustments:
Straight line rent		(6	)		(216	)		446			(1,048	)
Recurring capital expenditures		(3,625	)		(2,595	)		(7,526	)		(5,873	)
Tenant allowances		(2,607	)		(3,428	)		(7,929	)		(10,753	)
Amortization of non-cash deferred compensation		577			1,054			1,581			4,570
Capitalized leasing costs		(28	)		(173	)		(200	)		(234	)
Amortization of above- and below-market lease intangibles		(243	)		(239	)		(984	)		(933	)
Funds available for distribution to common shareholders and OP Unit holders(1)	$	(10,653	)	$	7,458		$	(20,971	)	$	(17,289	)

Funds from operations attributable to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	(0.93	)	$	2.50		$	(0.55	)	$	0.81
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit	$	(0.88	)	$	2.40		$	(1.18	)	$	(0.56	)
Funds available for distribution to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	(1.98	)	$	1.37		$	(3.90	)	$	(3.20	)


Weighted average number of shares outstanding	5,317	5,292	5,314	5,240
Weighted average effect of full conversion of OP Units	69	69	69	103
Effect of common share equivalents	-	72	-	63
Total weighted average shares outstanding, including OP Units	5,386	5,433	5,383	5,406

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

Pennsylvania Real Estate Investment Trust

Condensed Consolidated Balance Sheets

(Unaudited)


	December 31,
(in thousands, except per share amounts)	2022			2021
ASSETS:
INVESTMENTS IN REAL ESTATE, at cost:
Operating properties	$	2,894,944		$	3,156,194
Construction in progress		42,659			45,828
Land held for development		2,058			4,339
Total investments in real estate		2,939,661			3,206,361
Accumulated depreciation		(1,370,065	)		(1,405,260	)
Net investments in real estate		1,569,596			1,801,101
INVESTMENTS IN PARTNERSHIPS, at equity:		7,845			16,525
OTHER ASSETS:
Cash and cash equivalents		22,937			43,852
Tenant and other receivables		40,459			42,501
Intangible assets (net of accumulated amortization of $23,029 and $21,598 at December 31, 2022 and 2021, respectively)		8,623			10,054
Deferred costs and other assets, net		91,902			128,923
Assets held for sale		61,767			8,780
Total assets	$	1,803,129		$	2,051,736
LIABILITIES:
Mortgage loans payable, net	$	749,396		$	851,283
Term Loans, net		976,903			959,137
Revolving Facilities		22,481			54,549
Tenants’ deposits and deferred rent		13,264			10,180
Distributions in excess of partnership investments		93,136			71,570
Fair value of derivative instruments		—			8,427
Accrued expenses and other liabilities		69,846			89,331
Liabilities on assets held for sale		2,539			212
Total liabilities		1,927,565			2,044,689
COMMITMENTS AND CONTINGENCIES (Note 8)
EQUITY:
Series B Preferred Shares, $.01 par value per share; 3,450 shares issued and outstanding; liquidation preference of $102,151 and $95,791 at December 31, 2022 and 2021, respectively		35			35
Series C Preferred Shares, $.01 par value per share; 6,900 shares issued and outstanding; liquidation preference of $203,550 and $191,130 at December 31, 2022 and 2021, respectively		69			69
Series D Preferred Shares, $.01 par value per share; 5,000 shares issued and outstanding; liquidation preference of $146,485 and $137,891 at December 31, 2022 and 2021, respectively		50			50
Shares of beneficial interest, $1.00 par value per share; 13,333 shares authorized; 5,356 and 5,347 shares issued and outstanding at December 31, 2022 and 2021, respectively		5,356			5,347
Capital contributed in excess of par		1,858,675			1,851,866
Accumulated other comprehensive income (loss)		3,282			(8,830	)
Distributions in excess of net income		(1,980,693	)		(1,832,375	)
Total equity (deficit) – Pennsylvania Real Estate Investment Trust		(113,226	)		16,162
Noncontrolling interest		(11,210	)		(9,115	)
Total equity (deficit)		(124,436	)		7,047
Total liabilities and equity	$	1,803,129		$	2,051,736

Pennsylvania Real Estate Investment Trust

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

(in thousands)


	December 31,
(in thousands of dollars)	2022			2021
ASSETS:
Investments in real estate, at cost:
Operating properties	$	378,585		$	403,799
Construction in progress		5,095			5,430
Total investments in real estate		383,680			409,229
Accumulated depreciation		(123,223	)		(120,996	)
Net investments in real estate		260,457			288,233
Cash and cash equivalents		45,719			25,191
Deferred costs and other assets, net		39,639			75,944
Total assets		345,815			389,368
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		199,349			224,744
FDP Term Loan, net		52,214			97,301
Partnership Loans		107,004			57,771
Other liabilities		72,539			64,597
Total liabilities		431,106			444,413
Net investment	$	(85,291	)	$	(55,045	)
Reconciliation to comparable GAAP balance sheet item:
Investment in partnerships, at equity	$	7,845		$	16,525
Distributions in excess of partnership investments		(93,136	)		(71,570	)
Net investments and advances	$	(85,291	)	$	(55,045	)

The non-GAAP financial information presented above includes financial information attributable to our share of unconsolidated properties. This proportionate financial information is non-GAAP financial information, but we believe that it is helpful information because it reflects the pro rata contribution from our unconsolidated properties that are owned through investments accounted for under GAAP using the equity method of accounting. Under such method, our investments in these entities are recorded in the balance sheet caption entitled “Investment in partnerships, at equity.” In the case of deficit investment balances, such amounts are recorded in “Distributions in excess of partnership investments.”

To derive the proportionate financial information reflected in the tables above we multiplied the percentage of our economic interest in each partnership on a property-by-property basis by each line item. Under the partnership agreements relating to our current unconsolidated partnerships with third parties, we own a 40% to 50% economic interest in such partnerships, and there are generally no provisions in such partnership agreements relating to special non-pro rata allocations of income or loss, and there are no preferred or priority returns of capital or other similar provisions. While this method approximates our indirect economic interest in our pro rata share of the assets and liabilities of our unconsolidated partnerships, we do not control these partnerships or have a direct legal claim to the assets, liabilities, revenues or expenses of the unconsolidated partnerships beyond our rights as an equity owner in the event of any liquidation of such entity. Our percentage ownership is not necessarily indicative of the legal and economic implications of our ownership interest.

Pennsylvania Real Estate Investment Trust

Leasing Activity Summary – Three Months Ended December 31, 2022


		Number		GLA		Term			Initial Rent per square foot ("psf")		Previous Rent psf		Initial Gross Rent Renewal Spread(1)						Average Rent Renewal Spread(2)			Annualized Tenant Improvements psf(3)
													$			%			%
Non Anchor
New Leases
Under 10k square feet ("sf")	Consolidated		40		92,729		4.1		$	31.36	N/A		N/A			N/A			N/A			$	5.19
	Unconsolidated(4)		2		4,303		2.8			12.27	N/A		N/A			N/A			N/A
Total Under 10k sf			42		97,032		4.0		$	30.51	N/A		N/A			N/A			N/A			$	5.03

Over 10k sf	Consolidated		1		11,000		10.0			50.00	N/A		N/A			N/A			N/A				15.72
	Unconsolidated(4)		-		-		-			-	N/A		N/A			N/A			N/A
Total Over 10k sf			1		11,000		10.0			50.00													15.72
Total New Leases			43		108,032		4.6		$	32.50	N/A		N/A			N/A			N/A			$	7.37

Renewal Leases
Under 10k sf	Consolidated		87		103,368		3.1		$	49.16	$	49.19	$	(0.03	)		(0.1	%)		3.0	%	$	0.19
	Unconsolidated(4)		5		17,693		2.5		$	63.20	$	58.89		4.31			7.3	%		(6.8	%)		-
Total Under 10k sf			92		121,061		3.1		$	51.21	$	50.61	$	0.60			1.2	%		1.4	%	$	0.17

Over 10k	Consolidated		2		94,481		3.0			15.21		20.39		(5.18	)		(25.4	%)		(27.1	%)	$	-

Total Over 10k sf			2		94,481		3.0			15.21		20.39		(5.18	)		(25.4	%)		(27.1	%)	$	-
Total Fixed Rent			94		215,542		3.0		$	35.43	$	37.36	$	(1.93	)		(5.2	%)		(5.6	%)	$	0.09
Percentage in Lieu	Consolidated		14		53,911		1.9		$	14.89	$	15.10	$	(0.21	)		(1.4	%)	N/A			$	-
	Unconsolidated(4)		-		-		-		$	-	N/A		N/A			N/A			N/A
Total Percentage in Lieu			14		53,911		1.9		$	14.89		15.10		(0.21	)		(1.4	%)	N/A				-
Total Renewal Leases			108		269,453		2.8	`	$	31.32	$	32.91	$	(1.59	)		(4.8	%)				$	0.08
Total Non Anchor			151		377,485		3.3		$	31.66

Anchor
New Leases	Consolidated										N/A		N/A			N/A			N/A			$	-
Renewal Leases	Consolidated		1		135,186		5.0		$	7.90	$	6.05	$	1.85			30.6	%					-
Total			1		135,186		5.0		$	7.90

(1) Initial gross rent renewal spread is computed by comparing the initial rent psf in the new lease to the final rent psf amount in the expiring lease. For purposes of this computation, the rent amount includes minimum rent, CAM charges, estimated real estate tax reimbursements and marketing charges, but excludes percentage rent. In certain cases, a lower rent amount may be payable for a period of time until specified conditions in the lease are satisfied.

(2) Average rent renewal spread is computed by comparing the average rent psf over the new lease term to the final rent psf amount in the expiring lease. For purposes of this computation, the rent amount includes minimum rent and fixed CAM charges, but excludes pro rata CAM charges, estimated real estate tax reimbursements, marketing charges and percentage rent.

(3) Tenant improvements and certain other leasing costs are presented as annualized amounts per square foot and are spread uniformly over the initial lease term.

(4) We own a 40% to 50% interest in each of our unconsolidated properties and do not control such properties. Our percentage ownership is not necessarily indicative of the legal and economic implications of our ownership interest. See “—Non-GAAP Supplemental Financial Measures” in our Annual Report on Form 10-K for the year ended December 31, 2022 for further details on our ownership interests in our unconsolidated properties. Our unconsolidated properties include 7 leases and 21,996 square feet of GLA with respect to our unconsolidated partnerships.

Pennsylvania Real Estate Investment Trust

Leasing Activity Summary – Year Ended December 31, 2022


		Number		GLA		Term		Initial Rent per square foot ("psf")		Previous Rent psf		Initial Gross Rent Renewal Spread(1)						Average Rent Renewal Spread(2)			Annualized Tenant Improvements psf(3)
												$			%			%
Non Anchor
New Leases
Under 10k square feet ("sf")	Consolidated		150		379,197		5.2	$	36.06	N/A		N/A			N/A			N/A			$	6.33
	Unconsolidated(4)		7		20,816		5.9		27.46	N/A		N/A			N/A			N/A				1.34
Total Under 10k sf			157		400,013		5.2	$	35.61	N/A		N/A			N/A			N/A			$	6.04

Over 10k sf	Consolidated		6		108,264		11.1		18.37	N/A		N/A			N/A			N/A				7.25
	Unconsolidated(4)		1		11,089		10.0		27.05	N/A		N/A			N/A			N/A				8.12
Total Over 10k sf			7		119,353		11.0		19.18													7.32
Total New Leases			164		519,366		6.6	$	31.84	N/A		N/A			N/A			N/A			$	6.53

Renewal Leases
Under 10k sf	Consolidated		168		290,080		3.5	$	53.65	$	53.74	$	(0.09	)		(0.2	%)		4.3	%	$	0.60
	Unconsolidated(4)		18		49,215		2.8	$	68.70	$	65.90		2.80			4.2	%		2.0	%		-
Total Under 10k sf			186		339,295		3.4	$	55.83	$	55.50	$	0.33			0.6	%		3.9	%	$	0.53

Over 10k sf	Consolidated		12		336,637		3.4		18.53		19.61	$	(1.08	)		(5.5	%)		(5.5	%)		0.88
	Unconsolidated(4)		1		10,287		5.0		33.34		42.37		(9.03	)		(21.3	%)		(13.0	%)
Total Over 10k sf			13		346,924		3.4		18.97		20.28		(1.32	)		(6.5	%)		(5.9	%)	$	0.84
Total Fixed Rent			199		686,219		3.4	$	37.20	$	37.70	$	(0.50	)		(1.3	%)		1.1	%	$	0.69
Percentage in Lieu	Consolidated		69		233,910		2.2		27.85		31.26	$	(3.41	)		(10.9	%)					0.37
	Unconsolidated(4)
Total Percentage in Lieu			69		233,910		2.2	$	27.85	$	31.26	$	(3.41	)		(10.9	%)				$	0.37
Total Renewal Leases (4)			268		920,129		3.1	$	34.82	$	36.06	$	(1.24	)		(3.4	%)				$	0.63
Total Non Anchor			432		1,439,495		4.3	$	33.74

Anchor
New Leases			-		-		-	$	-	N/A		N/A			N/A			N/A			$	-
Renewal Leases	Consolidated		4		682,115		6.9		5.06		5.10		(0.04	)		(0.8	%)					-
Total			4		682,115		6.9	$	5.06

(3) Tenant improvements and certain other leasing costs are presented as annualized amounts per square foot and are spread uniformly over the initial lease term.

(4) We own a 40% to 50% interest in each of our unconsolidated properties and do not control such properties. Our percentage ownership is not necessarily indicative of the legal and economic implications of our ownership interest. See “—Non-GAAP Supplemental Financial Measures” in our Annual Report on Form 10-K for the year ended December 31, 2022 for further details on our ownership interests in our unconsolidated properties. Our unconsolidated properties include 27 leases and 91,407 square feet of GLA with respect to our unconsolidated partnerships.

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages


	December 31, 2022																							December 31, 2021
									Actual Occupancy						Leased Occupancy														Actual Occupancy
	% Rolling 12 Mo. NOI (4)			Average Comp Sales		Average Gross Rent(1)(2)		Occupancy Cost(3)	Total			Non- Anchor			Total			Non- Anchor			% Rolling 12 Mo. NOI			Average Comp Sales		Average Gross Rent(1)(2)		Occupancy Cost(3)	Total			Non- Anchor
Malls		92.9	%	$	596	$	56.55	11.2%		94.8	%		92.1	%		95.7	%		93.4	%		91.4	%	$	603	$	57.49	10.6%		93.3	%		89.7	%
Non-Core Malls (3)		-0.2	%	$	348	$	35.17	10.5%		53.2	%		52.5	%		53.2	%		52.5	%		0.6	%	$	283	$	30.06	10.2%		50.2	%		46.1	%
Malls Total		92.7	%	$	594	$	56.29	11.2%		92.2	%		90.3	%		93.0	%		91.6	%		92.0	%	$	596	$	56.89	10.6%		90.6	%		87.8	%
Other Retail Properties		5.2	%	n/a		$	19.25	n/a		99.4	%		99.3	%		99.4	%		99.3	%		5.5	%	n/a		$	19.09	n/a		93.0	%		92.2	%
Total Retail Properties		97.9	%	$	594	$	47.55	11.2%		92.8	%		91.3	%		93.6	%		92.5	%		97.5	%	$	596	$	48.33	10.6%		90.8	%		88.3	%
Sold Properties		2.6	%	n/a				n/a														2.8	%	$	460	$	41.39	8.1%		85.4	%		80.6	%
Other Properties		-0.4	%	n/a				n/a														-0.3	%	n/a				n/a
Total Portfolio		100.0	%	$	594	$	47.55	11.2%		92.8	%		91.3	%		93.6	%		92.5	%		100.0	%	$	596	$	47.73	10.5%		90.4	%		87.7	%

(1) Average gross rent for malls includes all non-anchor space owned by the Company and leased to tenants that occupy individual spaces of less than 10,000 square feet. Average gross rent for other retail properties includes all non-anchor space owned by the Company regardless of size.

(2) Average gross rent for mall tenants greater than 10,000 sf was $22.00 per square foot as of December 31, 2022 and $22.52 per square foot as of December 31, 2021.

(3) Beginning in the third quarter of 2021, Fashion District Philadelphia is classified as a Core Mall, compared to prior quarters when it was classified as a Non-Core Mall.

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

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot


	December 31, 2022											December 31, 2021								Change
	% of Mall NOI (2)			Avg Comp Sales (1)		Total Occupancy %			Non- Anchor Occupancy %			Avg Comp Sales		Total Occupancy %			Non-Anchor Occupancy %			Avg Comp Sales			Total Occupancy %			Non- Anchor Occupancy %
Top 6 Malls
Cherry Hill Mall		13.6	%	$	926		95.9	%		95.1	%	$	936		95.7	%		94.8	%		(1.1	%)		0.2	%		0.3	%
Willow Grove Park		5.3	%		780		96.8	%		94.4	%		777		97.8	%		96.1	%		0.4	%		(1.0	%)		(1.7	%)
Woodland Mall		6.6	%	646			97.8	%		97.4	%	632			88.7	%		86.6	%		2.2	%		9.1	%		10.8	%
Lehigh Valley Mall		7.0	%	629			87.3	%		79.5	%	630			89.1	%		82.3	%		(0.2	%)		(1.8	%)		(2.8	%)
Dartmouth Mall		4.7	%		597		99.9	%		99.9	%		580		93.1	%		90.2	%		2.9	%		6.8	%		9.7	%
Springfield Town Center		10.5	%	572			91.1	%		88.0	%	558			91.7	%		88.8	%		2.5	%		(0.6	%)		(0.8	%)
		47.7	%	$	705		93.8	%		91.3	%	$	704		92.5	%		89.5	%		0.1	%		1.3	%		1.8	%

Malls 7-12
Mall at Prince Georges		8.4	%	$	561		99.0	%		98.4	%	$	544		99.0	%		98.3	%		3.1	%		0.0	%		0.1	%
Jacksonville Mall		4.1	%		540		99.3	%		98.6	%		548		99.9	%		99.8	%		(1.5	%)		(0.6	%)		(1.2	%)
Capital City Mall		5.8	%		531		99.0	%		98.5	%		551		98.8	%		98.3	%		(3.6	%)		0.2	%		0.2	%
Viewmont Mall		4.1	%		508		99.7	%		99.4	%		546		98.3	%		96.5	%		(7.0	%)		1.4	%		2.9	%
Magnolia Mall		3.2	%		496		98.6	%		97.5	%		540		99.1	%		98.5	%		(8.1	%)		(0.5	%)		(1.0	%)
Patrick Henry Mall		5.0	%		494		97.1	%		95.8	%		555		95.7	%		93.8	%		(11.0	%)		1.4	%		2.0	%
		30.6	%	$	522		98.8	%		98.0	%	$	548		98.6	%		97.6	%		-4.7	%		0.2	%		0.4	%

Malls 13-19
Valley Mall		4.8	%	$	479		99.4	%		98.6	%	$	522		98.2	%		96.0	%		(8.2	%)		1.2	%		2.6	%
Moorestown Mall		2.9	%		441		97.7	%		95.9	%		438		96.4	%		93.7	%		0.7	%		1.3	%		2.2	%
Springfield Mall		1.5	%		418		94.9	%		94.9	%		495		87.6	%		87.6	%		(15.6	%)		7.3	%		7.3	%
Francis Scott Key Mall		3.7	%		414		97.7	%		96.4	%		427		93.9	%		90.5	%		(3.0	%)		3.8	%		5.9	%
Plymouth Meeting Mall		3.9	%		402		88.9	%		83.7	%		386		85.2	%		78.2	%		4.1	%		3.7	%		5.5	%
Fashion District Philadelphia		2.8	%	n/a			81.4	%		76.5	%	n/a			79.0	%		73.3	%	n/a				2.4	%		3.2	%
		19.4	%	$	434		92.6	%		88.6	%	$	461		89.9	%		84.4	%		-5.9	%		2.7	%		4.2	%

All Core Malls		97.7	%	$	596		94.8	%		92.1	%	$	603		93.3	%		89.7	%		-1.2	%		1.5	%		2.4	%

Non-Core Malls
Exton Square Mall		-0.2	%	$	348		53.2	%		52.5	%		283		50.2	%		46.1	%		23.0	%		3.0	%		6.4	%
All Non-Core Malls		-0.2	%	$	348		53.2	%		52.5	%	$	283		50.2	%		46.1	%		23.0	%		3.0	%		6.4	%

Sold Malls
Cumberland Mall		2.5	%	n/a		n/a			n/a			$	460		90.8	%		84.9	%	n/a			n/a			n/a
Sold Malls						n/a			n/a			$	460		90.8	%		84.9	%

All Malls		100.0	%	$	594		92.2	%		90.3	%	$	596		90.6	%		87.7	%		-0.3	%		1.6	%		2.6	%

(1) Beginning in the third quarter of 2021, Fashion District Philadelphia is classified as a Core Mall, compared to prior quarters when it was classified as a Non-Core Mall.

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

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants

December 31, 2022


Tenant	Brands	Locations at Consolidated Properties		Locations at Unconsolidated Properties		Total Number of Locations		Percentage of Annualized Gross Rent(1)
Foot Locker, Inc.	Champs, Foot Locker, Footaction, House of Hoops by Foot Locker, Kids Foot Locker	29		6		35			4.0	%
Signet Jewelers Limited	Kay Jewelers, Piercing Pagoda, Piercing Pagoda Plus, Zales Jewelers, Banter by Piercing Pagoda	43		8		51			3.2	%
American Eagle Outfitters, Inc.	Aerie, American Eagle Outfitters, Offline	15		4		19			2.8	%
Victoria's Secret & Co.	Victoria's Secret, Pink	13		3		16			2.7	%
Dick's Sporting Goods, Inc.	Dick's Sporting Goods, Field & Stream	9		1		10			2.7	%
Dave & Buster's, Inc.	Dave & Buster's	3			1	4			1.9	%
Sycamore Partners	Hot Topic, Talbots, Torrid, AnnTaylor, Loft, Belk	34		7		41			1.8	%
Macy's	Bloomingdale's, Macy's	12		2		14			1.8	%
Express, Inc	Express, Express Factory Outlet, Express Men	10		3		13			1.8	%
JD Sports Fashion PLC	DTLR, Finish Line, JD Sports, Villa	12		2		14			1.7	%
Genesco Inc.	Johnston & Murphy, Journeys, Journeys Kidz, Underground by Journeys	21		5		26			1.7	%
Gap, Inc.	Banana Republic, Gap/Gap Kids, Old Navy	9			5	14			1.6	%
Hennes & Mauritz L.P.	H & M	12		1		13			1.5	%
Cineworld Group	Regal Cinemas	3			-	3			1.4	%
Bath & Body Works, Inc.	Bath & Body Works	16		3		19			1.4	%
Authentic Brands Group LLC	Aeropostale, Forever 21, Lucky Brand Jeans	18		5		23			1.3	%
Darden Concepts, Inc.	Bahama Breeze, Capital Grille, Olive Garden, Seasons 52, Yard House	7			-	7			1.3	%
AMC Entertainment Holdings, Inc.	AMC	3		1		4			1.1	%
Luxottica Group S.p.A.	Lenscrafters, Pearle Vision, Sunglass Hut	19			6	25			1.1	%
Shoe Show, Inc.	Shoe Department, Shoe Dept. Encore	13			2	15			1.0	%
Total Top 20 Tenants		301		65		366			38.2	%
Total Leases			1,306	297			1,603		100.0	%

(1)

Includes our share of tenant gross rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments as of December 31, 2022.

Pennsylvania Real Estate Investment Trust

Lease Expirations as of December 31, 2022

(dollars in thousands except per square foot (“psf”) amounts)


Non-Anchors
			Gross Leasable Area ("GLA")					Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA (1)		Percent of Total			Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year (2)		Percent of PREIT’s Total			Average Expiring Gross Rent psf
2022 and Prior		99		200,939		2.6	%		15,267		13,056		4.8	%		75.98
2023		242		1,016,567		12.9	%		41,409		34,251		12.7	%		40.73
2024		297		994,165		12.7	%		44,849		39,656		14.7	%		45.11
2025		236		1,013,285		12.9	%		43,213		39,831		14.7	%		42.65
2026		133		759,029		9.6	%		29,392		26,418		9.8	%		38.72
2027		146		915,888		11.6	%		31,804		29,498		10.9	%		34.73
2028		95		704,282		9.0	%		26,615		24,617		9.1	%		37.79
2029		72		515,063		6.5	%		21,304		17,369		6.4	%		41.36
2030		62		465,632		5.9	%		19,537		16,738		6.2	%		41.96
2031		39		404,188		5.1	%		12,167		10,295		3.8	%		30.10
Thereafter		70		878,940		11.2	%		23,759		18,732		6.9	%		27.03
Total/Average		1,491		7,867,978		100.0	%	$	309,316	$	270,461		100.0	%	$	39.31


Anchors
			Gross Leasable Area ("GLA")					Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA (1)		Percent of Total			Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year (2)		Percent of PREIT’s Total			Average Expiring Gross Rent psf
2022 and prior		2		376,694		8.3	%		710		355		1.5	%		1.88
2023		1		121,200		2.7	%		336		336		1.4	%		2.77
2024		2		218,332		4.8	%		983		983		4.0	%		4.50
2025		8		929,729		20.6	%		2,045		2,045		8.4	%		2.20
2026		6		470,638		10.4	%		3,910		2,646		10.9	%		8.31
2027		2		275,250		6.1	%		1,743		1,743		7.2	%		6.33
2028		10		1,178,191		26.2	%		6,940		6,940		28.5	%		5.89
2029		2		200,341		4.4	%		3,278		3,278		13.5	%		16.36
2030		2		85,718		1.9	%		1,522		1,522		6.3	%		17.75
2031		2		166,523		3.7	%		932		932		3.8	%		5.60
Thereafter		4		493,572		10.9	%		3,513		3,513		14.5	%		7.12
Total/Average		41		4,516,188		100.0	%	$	25,912	$	24,293		100.0	%	$	5.74

(1) Does not include tenants occupying space under license agreements with initial terms of less than one year.

(2) Includes our share of tenant rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments.

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2022


		Landlord Owned Anchors/ Large Format Non Anchor				Anchor Stores Not Owned			Non-anchor occupied GLA
Properties	Location	Tenant	Expiration Year	GLA		Tenant	GLA		Large Format		Small Shop		Vacant		Total GLA
Core Malls
Capital City Mall	Camp Hill, PA	JCPenney	2025		102,825	Macy's		120,000		104,806		179,779		4,940		624,329
		Dick's Sporting Goods	2028		61,677
		Sportsman's Warehouse	2031							50,302
Cherry Hill Mall	Cherry Hill, NJ	Nordstrom	2025		138,000	JCPenney		174,285		243,628		416,242		34,197		1,310,952
						Macy's		304,600
Dartmouth Mall	Dartmouth, MA	JCPenney	2025		100,020	Macy's		140,000		106,859		149,780		400		632,513
		Burlington	2030		43,835
		AMC Theaters	2026							44,988
		Aldi	2031							24,063
		WOW Dartmouth	2033							22,568
Fashion District Philadelphia	Philadelphia, PA	Burlington	2032		85,162					179,365		122,753		157,853		850,851
		AMC	2034							36,535
		Round 1	2029							58,080
		City Winery	2038							29,762
		H&M	2030							38,694
		Shopper's World	2026		95,159
		Primark	2032							47,488
Francis Scott Key Mall	Frederick, MD	JCPenney	2025		101,293	Macy's		139,333		139,863		183,070		14,054		748,646
		Sears (3)	2028		120,883
		Dick's Sporting Goods	2025							50,150
Jacksonville Mall	Jacksonville, NC	Belk	2026		72,510					123,079		124,120		3,604		492,918
		JCPenney	2025		51,812
		Sears (3)	2026		117,793
Lehigh Valley Mall	Allentown, PA	Boscov's	2023		164,694	JCPenney		207,292		185,631		300,574		125,461		1,195,652
		Macy's	2023		212,000
Magnolia Mall	Florence, SC	Belk	2028		115,793					96,175		133,587		8,355		580,760
		Best Buy	2028		32,054
		Tilt Studio	2031		104,107
		Dick's Sporting Goods	2026							45,000
		Burlington	2028							45,689
Moorestown Mall	Moorestown, NJ	Boscov's	2028		202,765	Cooper Hospital (2)		182,153		110,814		206,326		17,146		926,733
		Regal Cinemas	2030							57,843
		HomeSense	2028		28,486
		Turn 7 Liquidations	2023		121,200

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2022


		Landlord Owned Anchors/ Large Format Non Anchor				Anchor Stores Not Owned			Non-anchor occupied GLA
Properties	Location	Tenant	Expiration Year	GLA		Tenant	GLA		Large Format		Small Shop		Vacant		Total GLA

Patrick Henry Mall	Newport News, VA	Dick's Sporting Goods	2027		50,250	Dillard's		144,157		60,095		225,621		12,586		717,921
		JCPenney	2025		85,212	Macy's		140,000
Plymouth Meeting Mall	Plymouth Meeting, PA	Boscov's	2028		188,429					171,330		210,753		101,485		917,844
		Whole Foods	2029		65,155
		Burlington	2030		41,883
		Dick's Sporting Goods	2031							57,588
		AMC Theaters	2027							48,000
		LEGOLAND Discovery Center	2032							33,221
Springfield Mall	Springfield, PA					Macy's		192,000		20,577		190,912		11,263		610,651
						Target		195,899
Springfield Town Center	Springfield, VA	Macy's	2035		252,245	JCPenney		209,144		181,785		325,472		87,914		1,374,187
						Target		180,841
		Dick's Sporting Goods	2025							53,891
		Nordstrom Rack	2025							33,107
		Regal Cinemas	2031							49,788
The Mall at Prince George's	Hyattsville, MD	Macy's	2028		195,655					268,818		238,051		8,498		846,208
		Target	2029		135,186
Valley Mall	Hagerstown, MD	JCPenney	2025		157,455					95,023		214,835		5,260		828,983
		Belk	2028		123,094
		Regal Cinemas	2033							53,059
		Dick's Sporting Goods	2031		62,416
		Onelife Fitness	2033		70,000
		Tilt Studio	2028		47,841
Viewmont Mall	Scranton, PA	JCPenney	2025		193,112	Macy's		139,801		76,053		166,126		1,608		689,277
		Dick's Sporting Goods/Field & Stream	2028		90,000
		HomeGoods	2027							22,577
Willow Grove Park	Willow Grove, PA	Macy's	2027		225,000	Bloomingdale's		237,537		78,219		259,064		20,063		1,035,799
		Nordstrom Rack	2024		40,332	Sears(1)(3)		175,584
Woodland Mall	Grand Rapids, MI	Von Maur	2119		86,165	JCPenney		254,905		115,714		308,689		12,541		982,252
						Macy's		157,316
		Phoenix Theatres	2037							46,922
Total Core Malls					4,181,498			3,294,847		3,307,149		3,955,754		627,228		15,366,476

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2022


		Landlord Owned Anchors/ Large Format Non Anchor				Anchor Stores Not Owned			Non-anchor occupied GLA
Properties	Location	Tenant	Expiration Year	GLA		Tenant	GLA		Large Format		Small Shop		Vacant		Total GLA
Other Malls and Retail Properties
Exton Square Mall	Exton, PA	Boscov's	2024		178,000	Macy's		181,200		58,269		135,366		378,939		990,145
		Round 1	2026		58,371
Metroplex Shopping Center	Plymouth Meeting, PA	Giant Food Store	2026		67,185	Lowe's		163,215		328,809		49,012		7,280		777,695
						Target		137,514
		Saks OFF 5th	2026							24,680
The Court at Oxford Valley	Fairless Hills, PA	Best Buy	2026		59,620	BJ's Wholesale Club		116,872		293,144		54,141		-		703,909
						The Home Depot		130,751
		Dick's Sporting Goods	2026							49,381
Red Rose Commons	Lancaster, PA					The Home Depot		134,558		248,086		15,207		-		462,883
						Weis Market		65,032
Total Other Malls and Retail Properties					363,176			929,142		1,002,369		253,726		386,219		2,934,632
Total Portfolio					4,544,674			4,223,989		4,309,518		4,209,480		1,013,447		18,301,108

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

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

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

Pennsylvania Real Estate Investment Trust

Investment in Real Estate - Consolidated Properties

(in thousands)


	December 31, 2022
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Debt(1)
Core Malls
Capital City Mall	$	138,423	$	-	$	65,874	$	72,549	$	-
Cherry Hill Mall		472,612		-		290,914		181,698		243,674
Dartmouth Mall		90,650		110		52,397		38,363		53,727
Francis Scott Key Mall		96,607		-		50,821		45,786		52,458
Jacksonville Mall		93,141		-		47,379		45,762		-
Magnolia Mall		105,885		-		57,972		47,913		-
Moorestown Mall		175,743		-		87,323		88,420		-
Patrick Henry Mall		158,077		-		85,384		72,693		83,079
Plymouth Meeting Mall		146,112		-		94,518		51,594		-
The Mall at Prince George's		137,028		218		79,096		58,150		-
Springfield Town Center		495,648		3,349		106,380		392,617		-
Valley Mall		148,538		1,229		62,667		87,100		-
Viewmont Mall		122,112		-		63,261		58,851		67,185
Willow Grove Park		232,675		37,639		126,094		144,220		145,237
Woodland Mall		281,693		114		99,985		181,822		106,100
Total Core Malls		2,894,944		42,659		1,370,065		1,567,538		751,460

Total Malls	$	2,894,944	$	42,659	$	1,370,065	$	1,567,538	$	751,460

Other Properties
Land held for development		2,058		-		-		2,058		-
Total Investment in Real Estate	$	2,897,002	$	42,659	$	1,370,065	$	1,569,596	$	751,460

Assets Held For Sale
Exton Square Mall		25,838		-		-		25,838		-
The Mall at Prince George's		4,861		-		-		4,861		-
Moorestown Mall		447		-		-		447		-
Woodland Mall		1,054		-		-		1,054		-
Plymouth Meeting Whole Foods		26,362		-		-		26,362		-
Total held for sale	$	58,562	$	-	$	-	$	58,562	$	-

(1)

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

Pennsylvania Real Estate Investment Trust

Investment in Real Estate – Equity Method Investments at Ownership Share

(in thousands)


	December 31, 2022
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation			Net Real Estate		Debt(1)
Unconsolidated Malls
Fashion District Philadelphia	$	166,633	$	810	$	(9,498	)	$	157,945	$	159,218
Lehigh Valley Mall		57,331		688		(33,314	)		24,705		90,664
Springfield Mall		58,749		60		(28,580	)		30,229		28,303
Total Unconsolidated Malls	$	282,713	$	1,558	$	(71,392	)	$	212,879	$	278,185

Unconsolidated Other Retail Properties
Metroplex Shopping Center		46,518		2,772		(28,908	)		20,382		34,342
The Court at Oxford Valley		28,411		-		(14,323	)		14,088		27,500
Red Rose Commons		14,598		-		(6,175	)		8,423		16,529
Total Unconsolidated Other Retail Properties	$	89,527	$	2,772	$	(49,406	)	$	42,893	$	78,371
Unconsolidated Property Under Development
Pavilion at Market East		6,345		765		(2,425	)		4,685	$	3,010
Total Investment in Real Estate	$	378,585	$	5,095	$	(123,223	)	$	260,457	$	359,566

(1)

Refer to pages 29-31 for further debt information regarding equity method investments at ownership share.

Pennsylvania Real Estate Investment Trust

Capital Expenditures

Three Months and Year Ended December 31, 2022

(in thousands)


	Three Months Ended December 31, 2022						Year Ended December 31, 2022
	Consolidated		PREIT's Share of Equity Method Investments		Total		Consolidated		PREIT's Share of Equity Method Investments		Total
Redevelopment projects with incremental GLA and/or anchor replacement (1)	$	1,441	$	233	$	1,674	$	4,517	$	1,425	$	5,942
Tenant allowances		2,105		502		2,607		7,017		912		7,929
Recurring capital expenditures:
CAM expenditures		2,856		70		2,926		5,720		419		6,139
Non-CAM expenditures		674		25		699		1,359		28		1,387
Total recurring capital expenditures		3,530		95		3,625		7,079		447		7,526
Total	$	7,076	$	830	$	7,906	$	18,613	$	2,784	$	21,397

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

Pennsylvania Real Estate Investment Trust

Debt Analysis as of December 31, 2022

(in thousands)


	Outstanding Debt
	Fixed Rate (1)			% of Total Indebtedness			Variable Rate			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable (2)	$	625,717			29.6	%	$	125,743			6.0	%	$	751,460			35.6	%
Unconsolidated mortgage loans payable (3)		200,348			9.5	%		-			0.0	%		200,348			9.4	%
Consolidated Term Loans (4)		300,000			14.2	%		679,186			32.1	%		979,186			46.3	%
Unconsolidated Term Loans (5)		107,004			5.0	%		52,214			2.5	%		159,218			7.5	%
2020 Revolving Facility		-			0.0	%		22,481			1.2	%		22,481			1.2	%
Total Outstanding Debt	$	1,233,069			58.4	%	$	879,624			41.8	%	$	2,112,693			100.0	%
Average Stated Interest Rate		6.12	%					11.18	%					8.28	%

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

(2) Excludes deferred financing costs of $2,065.

(3) Reflects our share of mortgage debt of equity method investees. Excludes our share of deferred financing costs of $999.

(4) Excludes deferred financing costs of $2,283.

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


		Average Debt Balance
		Mortgage Debt			Revolving Facility			Term Loans			Total
Beginning Balance	9/30/2022	$	1,001,741		$	26,078		$	1,132,289		$	2,160,108
Mortgage loan amortization, including our share of debt of equity method investees			(8,264	)		-			-			(8,264	)
Mortgage loan paydowns, payoffs and sales			(41,669	)		-			-			(41,669	)
First Lien Revolver Paydown			-			(3,597	)		-			(3,597	)
First Lien Term Loan Paydown			-			-			(13,090	)		(13,090	)
2018 FDP Term Loan Paydown			-			-			(45,088	)		(45,088	)
2020 and 2022 FDP Partnership Loan Borrowing			-			-			45,404			45,404
Second Lien Term Loan PIK Interest			-			-			18,889			18,889
Ending Balance	12/31/2022	$	951,808		$	22,481		$	1,138,404		$	2,112,693
Weighted Average Balance		$	973,786		$	24,168		$	1,129,771		$	2,127,724

Pennsylvania Real Estate Investment Trust

Debt Analysis as of December 31, 2022 (continued)

(in thousands)


Debt Maturities(1)
Year	Scheduled Amortization		Deferred Financing Cost Amortization - Mortgages			Mortgage Balance at Initial Maturity Date		2020 Revolving Facility		Term Loans		Deferred Financing Cost Amortization - Term Loans			Total Debt
2023	$	12,504	$	(1,868	)	$	434,626	$	22,481	$	979,186	$	(2,283	)	$	1,444,646
2024		10,242		(453	)		119,643		-		52,214		-			181,646
2025		9,031		(224	)		240,654		-		-		-			249,461
2026		4,162		(125	)		-		-		-		-			4,037
2027		3,859		(118	)		79,789		-		100,000		-			183,530
Thereafter		5,773		(276	)		31,525		-		7,004		-			44,026
	$	45,571	$	(3,064	)	$	906,237	$	22,481	$	1,138,404	$	(2,283	)	$	2,107,346

(1) The weighted average period to total debt maturity is 1.57 years, excluding extension options. Includes 100% of revolver, term loan and mortgage loan debt from consolidated properties and our share of term loan and mortgage loan debt of equity method investees.


Weighted Average Mortgage Interest Rates
Year	Balance (1)		Interest Rate
2023	$	437,843		4.99	%
2024		119,643		7.30	%
2025		259,629		4.11	%
2026		-		0.00	%
2027		90,664		4.06	%
Thereafter		44,029		3.23	%
Total	$	951,808		4.87	%

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

Pennsylvania Real Estate Investment Trust

Debt Schedule as of December 31, 2022

(in thousands)


	Debt			Interest Rate			Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Fixed Rate Mortgage Loans
Cherry Hill Mall	$	243,674			3.90	%	$	16,980	$	243,674	February 2023	May 2023
Dartmouth Mall		53,727			3.97	%		3,825		53,299	April 2023	April 2023
Metroplex Shopping Center (1)		34,342			5.00	%		2,818		33,502	October 2023	October 2023
Francis Scott Key Mall		40,000			7.19	%		2,876		40,000	June 2024	June 2025
Viewmont Mall		60,000			7.19	%		4,314		60,000	June 2024	June 2025
Patrick Henry Mall		83,079			4.35	%		5,748		77,591	July 2025	July 2025
Pavilion East Associates (1)		3,010			5.50	%		267		3,010	October 2025	October 2027
Springfield Mall (1)		28,303			4.45	%		1,964		26,299	October 2025	October 2025
Willow Grove Park		145,237			3.88	%		9,599		133,754	October 2025	October 2025
Lehigh Valley Mall (1)		90,664			4.06	%		5,768		79,789	November 2027	November 2027
Red Rose Commons (1)		16,529			3.28	%		978		13,183	July 2031	July 2031
The Court at Oxford Valley (1)		27,500			3.20	%		2,058		18,343	July 2031	July 2031

Total Fixed Rate Mortgage Loans	$	826,065			4.39	%	$	57,195	$	782,444

Variable Rate Mortgage Loans
Woodland Mall	$	106,100			8.00	%	$	12,688	$	106,100	June 2023	October 2023
Francis Scott Key Mall		12,458			7.84	%		976		12,458	June 2024	June 2025
Viewmont Mall		7,185			7.84	%		563		7,185	June 2024	June 2025
Total Variable Rate Mortgage Loans	$	125,743			7.92	%	$	14,227	$	125,743
Total Mortgage Loans	$	951,808			4.87	%	$	71,422	$	908,187

Consolidated Mortgage Loans	$	751,460			5.07	%	$	57,569	$	734,062
Consolidated Deferred Financing Fees		(2,065	)	N/A			N/A		N/A
Unconsolidated Mortgage Loans		200,348			4.11	%		13,853		174,125
Unconsolidated Deferred Financing Fees		(999	)	N/A			N/A		N/A
First Lien Term Loan (2)		332,051			8.57	%		28,471		332,051	December 2023	December 2023
Second Lien Term Loan		647,135			12.27	%		79,431		647,135	December 2023	December 2023
2018 FDP Term Loan		52,214			7.62	%		3,979		52,214	January 2023	January 2024
Term Loan Deferred Financing Fees		(2,283	)	N/A			N/A		N/A
First Lien Revolver		22,481			7.62	%		1,713		22,481	December 2023	December 2023
2020 FDP Partnership Loan		100,000			15.00	%		15,000		100,000	December 2027	December 2027
2022 FDP Partnership Loan		7,004			15.00	%		1,051		7,004	August 2029	August 2029
Total	$	2,107,346			8.28	%	$	201,067	$	2,069,072
Amortization of Deferred Financing Fees	—				0.02	%	—		—
Effective Interest Rate	$	2,107,346			8.30	%	$	201,067	$	2,069,072

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

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

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios


	December 31, 2022
Debt Yield Ratio (1)
Maintain a minimum Debt Yield Ratio (Senior) of 11.35% from and after June 30, 2021	20.67%
Maintain a minimum Debt Yield Ratio (Corporate) of (a) 6.50% from June 30, 2021 through and including September 30, 2021 and (b) 7.25% from and after October 1, 2021	8.42%
Liquidity (1)
Maintain minimum liquidity of at least $25.0 million, to be comprised of unrestricted cash held in certain deposit accounts subject to control agreements	$	119.9

(1)

The First Lien Credit Agreement and Second Lien Credit Agreement (collectively, the "Credit Agreements"), contain identical affirmative and negative covenants customarily found in such agreements, including requirements that the Company, on a consolidated basis, maintain certain financial ratios and liquidity. All capitalized terms used on this page have the meanings ascribed to such terms in the Credit Agreements. In addition to the ratios set forth herein, there are several other requirements set forth in the covenants under the Credit Agreements with which the Company must comply. As of December 31, 2022, we were in compliance with terms under the Credit Agreements, however, a material decline in future operating results could affect our ability to comply with the financial covenants, including additional covenants that came into effect starting on December 31, 2021.

Pennsylvania Real Estate Investment Trust

Forward Looking Statements

FORWARD LOOKING STATEMENTS

This Quarterly Supplemental and Operating Information for the quarter ended December 31, 2022 contains certain forward-looking statements that can be identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “project,” “intend,” “may” or similar expressions. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters, including our expectations regarding the impact of COVID-19 on our business, that are not historical facts. These forward-looking statements reflect our current views about future events, achievements, results, cost reductions, dividend payments and the impact of COVID-19 and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, our business might be materially and adversely affected by the following:

•

the effectiveness of our financial restructuring and any additional strategies that we may employ to address our liquidity and capital resources in the future;

•

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

•

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

•

the COVID-19 global pandemic and the public health and governmental response, which have created periods of significant economic disruption and also have and may continue to exacerbate many of the risks listed herein;

•

changes in the retail and real estate industries, including bankruptcies, consolidation and store closings, particularly among anchor tenants;

•

changes in economic conditions, including unemployment rates and its effects on consumer confidence and spending, supply chain challenges, the current inflationary environment, the potential for recession and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions;

•

our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise;

•

our ability to sell properties that we seek to dispose of, which may be delayed by, among other things, the failure to obtain zoning, occupancy and other governmental approvals and permits or, to the extent required, approvals of other third parties;

•

potential losses on impairment of certain long-lived assets, such as real estate, including losses that we might be required to record in connection with any disposition of assets;

•

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

•

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

•

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

•

the effects of online shopping and other uses of technology on our retail tenants;

•

risks related to our development and redevelopment activities, including delays, cost overruns and our inability to reach projected occupancy or rental rates;

•

social unrest and acts of vandalism or violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales; and,

•

potential dilution from any capital raising transactions or other equity issuances.

Additional factors that might cause future events, achievements or results to differ materially from those expressed or implied by our forward-looking statements include those discussed herein and in the section entitled "Item 1A. Risk Factors" of each of our Annual Report on Form 10-K for the year ended December 31, 2021 and our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022 and any subsequent reports we file with the SEC. We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations (“FFO”), which is a non-GAAP measure commonly used by REITs, as net income (computed in accordance with GAAP) excluding (i) depreciation and amortization of real estate, (ii) gains and losses on sales of certain real estate assets, (iii) gains and losses from change in control and (iv) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. We compute FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than we do. NAREIT’s established guidance provides that excluding impairment write downs of depreciable real estate is consistent with the NAREIT definition.

FFO is a commonly used measure of operating performance and profitability among REITs. We use FFO and FFO per diluted share and unit of limited partnership interest in our operating partnership (“OP Unit”) in measuring our performance against our peers and have used it as one of the performance measures for determining incentive compensation amounts earned under certain of our performance-based executive compensation programs.

FFO does not include gains and losses on sales of operating real estate assets or impairment write downs of depreciable real estate (including development land parcels), which are included in the determination of net loss in accordance with GAAP. Accordingly, FFO is not a comprehensive measure of our operating cash flows. In addition, since FFO does not include depreciation on real estate assets, FFO may not be a useful performance measure when comparing our operating performance to that of other non-real estate commercial enterprises. We compensate for these limitations by using FFO in conjunction with other GAAP financial performance measures, such as net loss and net cash used in operating activities, and other non-GAAP financial performance measures, such as NOI. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net loss (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that net loss is the most directly comparable GAAP measurement to FFO.

When applicable, we also present FFO, as adjusted, and FFO per diluted share and OP Unit, as adjusted, which are non-GAAP measures, for the years ended December 31, 2022 and 2021, respectively, to show the effect of such items as gain or loss on debt extinguishment (including accelerated amortization of financing costs), impairment of assets, gains on sales of equity method investments, gains on sale of real estate by equity method investee, provision for employee separation expense, insurance recoveries or losses, net, gain/loss on hedge ineffectiveness, gain on sale of preferred equity interest and reorganization expenses which had an effect on our results of operations, but are not, in our opinion, indicative of our ongoing operating performance.

We believe that FFO is helpful to management and investors as a measure of operating performance because it excludes various items included in net loss that do not relate to or are not indicative of operating performance, such as 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 provision for employee separation expense, insurance recoveries, gain on debt extinguishment, gain on sale of preferred equity interest, gain on hedge ineffectiveness and reorganization expenses.

Net Operating Income (NOI)

NOI (a non-GAAP measure) is derived from real estate revenue (determined in accordance with GAAP, including lease termination revenue), minus property operating expenses (determined in accordance with GAAP), plus our pro rata share of revenue and property operating expenses of our unconsolidated partnership investments. NOI does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net loss (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. It is not indicative of funds available for our cash needs, including our ability to make cash distributions.

We believe NOI is helpful to management and investors as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. We believe that net loss is the most directly comparable GAAP measure to NOI. NOI excludes other income, depreciation and amortization, general and administrative expenses, other expenses (which includes provision for employee separation expense and project costs), interest expense, reorganization expenses, impairment of assets, equity in loss/income of partnerships, gain on extinguishment of debt, gain/loss on sales of real estate, gain on sale of equity method investee, gain on sale of real estate by equity method investee, gain on sales of non-operating real estate and gain/loss on sale of preferred equity interest.

Same Store NOI

Same Store NOI is calculated using retail properties owned for the full periods presented and excludes properties acquired or disposed of, under redevelopment, or designated as non-core during the periods presented. Non Same Store NOI is calculated using the retail properties excluded from the calculation of Same Store NOI.

Funds Available for Distribution (FAD)

FAD is a measure of a real estate company’s cash flows generated by operations and capacity to pay dividends. The Company calculates FAD by starting with FFO as adjusted and subtracting (1) straight-line rent, (2) normalized recurring capital expenditures that are capitalized but necessary to maintain our properties, (3) operational tenant allowances, (4) capitalized leasing costs, (5) non-cash compensation charges, and (6) amortization of above- and below-market lease intangibles.

We believe that net income is the most directly comparable GAAP measurement to FAD. We believe FAD provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. In addition, we believe that to further understand our liquidity, FAD should be compared with our cash flow from operating activities determined in accordance with GAAP, as presented in our consolidated financial statements. The computation of FAD may not be comparable to FAD reported by other REITs or real estate companies and FAD does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, or as an alternative to net cash flow from operating activities (determined in accordance with GAAP), as a measure of our liquidity.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)

NAREIT defines Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”), which is a non-GAAP measure, as net income (computed in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization; plus or minus losses and gains on the disposition of depreciated property, including losses/ gains on change in control; plus impairment write downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; plus or minus adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates. We compute EBITDAre in accordance with the standards established by NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than we do.

EBITDAre does not include interest expense, income tax expense, gains or losses on sales of operating real estate or impairment writedowns of depreciable real estate, which are included in the determination of net income in accordance with GAAP. Accordingly, EBITDAre is not a comprehensive measure of our operating cash flows. EBITDAre does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that net income is the most directly comparable GAAP measurement to EBITDAre.

We believe that EBITDAre is helpful to management and investors as a measure of operating performance because it provides an additional performance measure to management and investors to facilitate the evaluation and comparison of the Company to other REITs and to other non-real estate commercial enterprises.

Pennsylvania Real Estate Investment Trust (PRET) 8-KResults of Operations and Financial Condition