Pennsylvania Real Estate Investment Trust 8K Results of Operations and Financial Condition | PRET 4 May 23

Exhibit 99.1

Supplemental Financial and Operating Information

March 31, 2023

www.preit.com

OTCQB: PRET

OTCQB: PRETL, PRETM, PRETN

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

March 31, 2023


Table of Contents
Introduction

Company Information	1

Earnings Release	2

Changes in Funds from Operations (FFO) for the Three Months Ended March 31, 2023	5

Market Capitalization and Capital Resources	6

Operating Results

Statements of Operations – Three Months Ended March 31, 2023 and 2022	7

Computation of Earnings Per Share - Three Months Ended March 31, 2023 and 2022	8

Reconciliation of Net Operating Income (NOI) and EBITDAre (Non-GAAP Measures) – Three Months Ended March 31, 2023 and 2022	9

Reconciliation of Net Loss (GAAP Measure) to Net Operating Income (NOI) from Consolidated Properties (Non-GAAP Measure) - Three Months Ended March 31, 2023 and 2022	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 March 31, 2023 and 2022	11

Reconciliation of Net Loss (GAAP Measure) to Funds From Operations (FFO) and Funds Available for Distribution (FAD) (Non-GAAP Measures) – Three Months Ended March 31, 2023 and 2022	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 Ended March 31, 2023	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 March 31, 2023	21

Lease Expirations as of March 31, 2023	22

Property Information as of March 31, 2023	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 Ended March 31, 2023	28

Debt Analysis as of March 31, 2023	29

Debt Schedule as of March 31, 2023	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 First Quarter 2023 Results

Core Mall Total Occupancy Grew to 93.5%

Core Mall Non-Anchor Occupancy Increased 150 Basis Points to 90.1%

Core Mall Sales Per Square Foot Were $603 in March, Growing 1.2% Over December 2022

Average Renewal Spreads Were 5.6% for the Quarter Ended March 31, 2023

Mortgage Loan on Cherry Hill Mall Extended

Philadelphia, May 4, 2023 - PREIT (OTCQB:PRET) today reported results for the three months ended March 31, 2023. 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 March 31,
(per share amounts)	2023			2022
Net loss - basic and diluted	$	(9.75	)	$	(7.41	)
FFO	$	(3.05	)	$	(0.21	)
FFO, as adjusted	$	(3.05	)	$	(0.89	)

“Our quarterly results demonstrate the continued strength of the portfolio and the resiliency of the consumer as sales, occupancy and NOI continue to show improvement," said Joseph F. Coradino, Chairman and CEO of PREIT. “While the economic backdrop is in flux, as we deliver new retailers and experiences throughout the portfolio, we expect to continue to drive traffic and sales, creating new opportunities to improve the value of portfolio."

•

Same Store NOI, excluding lease termination revenue, increased 5.7% for the three months ended March 31, 2023 compared to the three months ended March 31, 2022.

•

Robust leasing activity is driving increased occupancy with Core Mall Total Occupancy increasing by 90 basis points to 93.5% compared to the first quarter 2022. Core Mall non-anchor Occupancy improved 150 basis points to 90.1% compared to the first quarter 2022.

•

Core Mall total leased space, at 94.5%, exceeds occupied space by 100 basis points, and Core Mall non-anchor leased space, at 91.7%, is higher than occupied space by 160 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 March 31, 2023, core mall comparable sales grew to $603 per square foot, compared to $539 for the year ended December 31, 2019.

•

Average renewal spreads for the three months ended March 31, 2023 were 5.6%.

•

Since the beginning of 2023, the Company sold assets generating just over $26 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 $29 million through March 31, 2023.

Leasing and Redevelopment

•

258,000 square feet of leases are signed for future openings, which is expected to contribute annualized gross rent of approximately $7.2 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 2023, adding family entertainment to this locally-loved destination shopping experience. The balance of the facility is expected to open in summer 2023.

•

At Moorestown Mall, construction is underway for the new state-of-the-art Cooper University Healthcare facility, expected to open its initial phase in fall 2023, 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 March 31, 2023 and 2022

•

Net loss attributable to PREIT common shareholders was $51.9 million (which takes into consideration the accrual of preferred dividends that accumulated during the quarter but have not been paid), or $(9.75) per basic and diluted share for the three months ended March 31, 2023, compared to net loss attributable to PREIT common shareholders of $39.3 million, or $(7.41) per basic and diluted share for the three months ended March 31, 2022.

•

Funds from Operations decreased in the three months ended March 31, 2023 compared to the prior year period primarily due to higher interest expense and a decrease in gain on sale of preferred equity interest.

•

FFO for the three months ended March 31, 2023 was $(3.05) per diluted share and OP Unit compared to $(0.21) per diluted share and OP Unit for the three months ended March 31, 2022.

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 ended March 31, 2023 and 2022 is included on page 15.

Liquidity and Financing Activities

As of March 31, 2023, 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 $117.0 million. The Company’s Credit Facilities, with a balance of $995.8 million as of March 31, 2023, mature on December 10, 2023. The Company is working to address the upcoming maturity by pursuing all available alternatives, including refinancing, selling assets and engaging in discussions with lenders.

Additionally, the Fashion District Philadelphia partnership has extended the maturity on the term loan to January 2024.

Subsequent to the end of the quarter, the Company extended the mortgage loan secured by Cherry Hill Mall through December 1, 2023 with an additional five month extension option exercisable subject to satisfaction of certain conditions.

Asset Dispositions

During 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 Thursday May 4, 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 913781768, 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 (OTCQB: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 Ended March 31, 2023 as compared to the Three Months Ended March 31, 2022

(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 March 31, 2023			Per Diluted Share and OP Unit
Funds from Operations, as adjusted March 31, 2022	$	(4,757	)	$	(0.89	)

Changes - Q1 2022 to Q1 2023

Contribution from anchor replacements and new box tenants		253			0.04
Impact from bankruptcies		(131	)		(0.03	)
Other leasing activity, including base rent and net CAM and real estate tax recoveries		527			0.10
Lease termination revenue		179			0.04
Credit losses		(35	)		(0.01	)
Other		216			0.05
Same Store NOI(1) from unconsolidated properties		919			0.17
Same Store NOI		1,928			0.37
Non Same Store NOI		(1,754	)		(0.33	)
General and administrative expenses		(11,125	)		(2.07	)
Capitalization of leasing costs		236			0.05
Other		11,265			2.09
Interest expense, net		(12,225	)		(2.27	)
Funds from Operations, as adjusted March 31, 2023		(16,432	)		(3.05	)
Provision for employee separation expense		(5	)		-
Funds from Operations, March 31, 2023	$	(16,437	)	$	(3.05	)

(1) Funds from Operations and NOI are non-GAAP measures. See definitions of Funds from Operations and NOI on page 31.

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands)


	March 31, 2023			December 31, 2022
MARKET CAPITALIZATION

EQUITY CAPITALIZATION
Common Shares Outstanding		5,341			5,356
OP Units Outstanding		68			69
Total Common Shares and OP Units Outstanding		5,409			5,425
Equity Market Capitalization—Common Shares and OP Units	$	5,950		$	6,347
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	$	389,700		$	390,097


DEBT CAPITALIZATION
Secured Debt Balance (1)	$	2,099,701		$	2,112,693

TOTAL MARKET CAPITALIZATION	$	2,489,401		$	2,502,790

Equity Capitalization/Total Market Capitalization		15.7	%		15.6	%
Debt Capitalization/Total Market Capitalization		84.3	%		84.4	%


CAPITAL RESOURCES
Cash and Cash Equivalents	$	40,023		$	36,945
Revolving Facility		130,000			130,000
Amount Outstanding		(22,481	)		(22,481	)
Available Revolving Facility (2)		107,519			107,519
Term Loans		1,135,977			1,138,404
Amount Borrowed		(1,135,977	)		(1,138,404	)
Available Term Loans		-			-
TOTAL	$	147,542		$	144,464

(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 $39.2 million and $52.2 million of secured debt from our share of the FDP Term Loans as of March 31, 2023 and December 31, 2022, and $123.5 million and $107.0 million from our share of the FDP Partnership Loan as of March 31, 2023 and December 31, 2022, 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 Ended March 31, 2023 and 2022

(unaudited)


	Three Months Ended March 31,
(in thousands of dollars)	2023			2022
REVENUE:
Real estate revenue:
Lease revenue	$	61,515		$	64,283
Expense reimbursements		4,653			4,144
Other real estate revenue		1,006			767
Total real estate revenue		67,174			69,194
Other income		91			241
Total revenue		67,265			69,435
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes		(26,159	)		(27,872	)
Utilities		(3,395	)		(3,561	)
Other property operating expenses		(2,215	)		(2,140	)
Total property operating expenses		(31,769	)		(33,573	)
Depreciation and amortization		(26,369	)		(29,110	)
General and administrative expenses		(11,125	)		(11,483	)
Other (expenses) income		(3	)		(144	)
Total operating expenses		(69,266	)		(74,310	)
Interest expense, net (1)		(41,048	)		(31,391	)
Total expenses		(110,314	)		(105,701	)
Equity in loss of partnerships (2)		(2,696	)		(395	)
Gain on sale of preferred equity interest		—			3,688
Net loss		(45,745	)		(32,973	)
Less: net loss attributable to noncontrolling interest		659			504
Net loss attributable to PREIT		(45,086	)		(32,469	)
Less: preferred share dividends		(6,844	)		(6,844	)
Net loss attributable to PREIT common shareholders	$	(51,930	)	$	(39,313	)

(1) Net of capitalized interest expense of $76 thousand and $24 thousand for the three months ended March 31, 2023 and 2022, respectively.

(2) Equity in loss of partnerships is net of capitalized interest expense of $24 thousand and $0 for the three months ended March 31, 2023 and 2022, respectively.

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share – Three Months Ended March 31, 2023 and 2022

(unaudited)


	For the three months ended March 31,
(in thousands, except per share amounts)	2023			2022
Net loss used to calculate loss per share—basic and diluted	$	(51,930	)	$	(39,313	)
Basic and diluted loss per share:	$	(9.75	)	$	(7.41	)

Weighted average shares outstanding—basic		5,324			5,305
Effect of common share equivalents(1)		—			—
Weighted average shares outstanding—diluted		5,324			5,305

(1) The Company had net losses used to calculate earnings per share for the three months ended March 31, 2023 and 2022. 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 Ended March 31, 2023 and 2022

(in thousands)

Net Operating Income ("NOI") Reconciliation for the Three Months Ended March 31, 2023 and 2022 (1)


	Same Store				Change						Non Same Store					Total
(in thousands of dollars)	2023		2022		$			%			2023			2022		2023		2022
NOI from consolidated properties	$	35,840	$	34,831	$	1,009			2.9	%	$	(434	)	$	791	$	35,406	$	35,622
NOI attributable to equity method investments, at ownership share		8,746		7,827		919			11.7	%		72			601		8,818		8,428
Total NOI		44,586		42,658		1,928			4.5	%		(362	)		1,392		44,224		44,050
Less: lease termination revenue		338		793		(455	)		(57.4	%)		-			8		338		801
Total NOI excluding lease termination revenue	$	44,248	$	41,865	$	2,383			5.7	%	$	(362	)	$	1,384	$	43,886	$	43,249

(1) NOI is a non-GAAP measure. See definition of NOI on page 31.

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


	Three Months Ended March 31,
	2023			2022
Net loss	$	(45,745	)	$	(32,973	)
Depreciation and amortization:
Consolidated		26,369			29,110
Unconsolidated properties at ownership share		2,845			3,022
Interest expense:
Consolidated		41,048			31,391
Unconsolidated properties at ownership share		8,338			5,770
Loss on project costs by equity method investee		288			-
EBITDAre	$	33,143		$	36,320

(1) EBITDAre is a non-GAAP measure. See definition on page 32.

Pennsylvania Real Estate Investment Trust

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

Three Months Ended March 31, 2023 and 2022

(in thousands)


	Three Months Ended March 31,
	2023			2022
Net loss	$	(45,745	)	$	(32,973	)
Other income		(91	)		(241	)
Depreciation and amortization		26,369			29,110
General and administrative expenses		11,125			11,483
Other (expenses) income		4			145
Interest expense, net		41,048			31,391
Equity in loss of partnerships		2,696			395
Gain on sale of preferred equity interest		-			(3,688	)
NOI from consolidated properties (1)	$	35,406		$	35,622

(1) NOI is a non-GAAP measure. See definition of NOI on page 31.


	Same Store						Non Same Store						Total
	2023			2022			2023			2022			2023			2022
Real estate revenue
Base rent	$	45,987		$	45,776		$	687		$	2,724		$	46,674		$	48,500
CAM reimbursement income		8,048			8,120			135			356			8,183			8,476
Real estate tax income		6,183			6,865			4			302			6,187			7,167
Percentage rent		200			112			181			-			381			112
Lease termination revenue		188			9			-			-			188			9
		60,606			60,882			1,007			3,382			61,613			64,264
Less: credit losses		(157	)		(122	)		59			142			(98	)		20
Lease revenue		60,449			60,760			1,066			3,524			61,515			64,284
Expense reimbursements		4,572			3,860			81			285			4,653			4,145
Other real estate revenue		1,000			678			6			87			1,006			765
Total real estate revenue		66,021			65,298			1,153			3,896			67,174			69,194
Property operating expenses																	-
CAM and real estate taxes		(24,836	)		(25,265	)		(1,323	)		(2,607	)		(26,159	)		(27,872	)
Utilities		(3,286	)		(3,249	)		(109	)		(312	)		(3,395	)		(3,561	)
Other property operating expenses		(2,059	)		(1,953	)		(155	)		(186	)		(2,214	)		(2,139	)
Total property operating expenses		(30,181	)		(30,467	)		(1,587	)		(3,105	)		(31,768	)		(33,572	)
NOI from consolidated properties(1)		35,840			34,831			(434	)		791			35,406			35,622
Less: Lease termination revenue		188			9			-			-			188			9
NOI from consolidated properties excluding lease termination revenue(1)	$	35,652		$	34,822		$	(434	)	$	791		$	35,218		$	35,613
% change in Same Store NOI from consolidated properties excluding lease termination revenue				2.4%

(1) NOI is a non-GAAP measure. See definition of NOI on page 31.

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 March 31, 2023 and 2022

(in thousands of dollars)


	Three Months Ended March 31,
	2023			2022
Equity in loss of partnerships	$	(2,696	)	$	(395	)
Depreciation and amortization		2,845			3,022
Interest expense and other expenses, net		8,381			5,801
Loss on project costs by equity method investee		288			-
NOI from equity method investments at ownership share(1)	$	8,818		$	8,428

(1) NOI is a non-GAAP measure. See definition of NOI on page 31.


	Same Store						Non Same Store						Total
	2023			2022			2023			2022			2023			2022
Real estate revenue
Base rent	$	8,292		$	7,817		$	8		$	584		$	8,300		$	8,401
CAM reimbursement income		1,627			1,891			-			156			1,627			2,047
Real estate tax income		999			937			-			115			999			1,052
Percentage rent		150			216			150			141			300			357
Lease termination revenue		150			784			-			8			150			792
		11,218			11,645			158			1,004			11,376			12,649
Less: credit losses		118			38			-			(2	)		118			36
Lease revenue		11,336			11,683			158			1,002			11,494			12,685
Expense reimbursements		1,134			562			-			103			1,134			665
Other real estate revenue		1,033			565			-			18			1,033			583
Total real estate revenue		13,503			12,810			158			1,123			13,661			13,933
Property operating expenses
CAM and real estate taxes		(3,561	)		(3,850	)		(31	)		(337	)		(3,592	)		(4,187	)
Utilities		(512	)		(511	)		-			(50	)		(512	)		(561	)
Other property operating expenses		(684	)		(622	)		(55	)		(135	)		(739	)		(757	)
Total property operating expenses		(4,757	)		(4,983	)		(86	)		(522	)		(4,843	)		(5,505	)
NOI from equity method investments at ownership share(1)		8,746			7,827			72			601			8,818			8,428
Less: Lease termination revenue		150			784			-			8			150			792
NOI from equity method investments at ownership share excluding lease termination revenue(1)	$	8,596		$	7,043		$	72		$	593		$	8,668		$	7,636
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				22.1%

(1) NOI is a non-GAAP measure. See definition of NOI on page 31.

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 Ended March 31, 2023 and 2022

(in thousands, except per share amounts)


	Three Months Ended March 31,
	2023			2022
FUNDS FROM OPERATIONS (1)

Net loss	$	(45,745	)	$	(32,973	)
Depreciation and amortization on real estate:
Consolidated properties		26,175			28,798
PREIT's share of equity method investments		2,845			3,022
Loss on project costs by equity method investee		288			-
Funds from operations attributable to common shareholders and OP Unit holders(1)		(16,437	)		(1,153	)
Provision for employee separation expenses		5			84
Gain on sale of preferred equity interest		-			(3,688	)
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders	$	(16,432	)	$	(4,757	)

(1) Funds from Operations is a Non-GAAP measures. See definition on pages 31.


FUNDS AVAILABLE FOR DISTRIBUTION(1)

Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders(1)	$	(16,432	)	$	(4,757	)
Adjustments:
Straight line rent		(16	)		310
Recurring capital expenditures		(562	)		(813	)
Tenant allowances		(4,860	)		(988	)
Amortization of non-cash deferred compensation		213			(165	)
Capitalized leasing costs		(265	)		(29	)
Amortization of above- and below-market lease intangibles		(540	)		(4	)
Funds available for distribution to common shareholders and OP Unit holders(1)	$	(22,462	)	$	(6,446	)

Funds from operations attributable to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	(3.05	)	$	(0.21	)
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit	$	(3.05	)	$	(0.89	)
Funds available for distribution to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	(4.17	)	$	(1.20	)


Weighted average number of shares outstanding	5,324	5,305
Weighted average effect of full conversion of OP Units	68	69
Effect of common share equivalents	-	-
Total weighted average shares outstanding, including OP Units	5,392	5,374

(1) Non-GAAP measures. See definitions on pages 31-32.

Pennsylvania Real Estate Investment Trust

Condensed Consolidated Balance Sheets

(Unaudited)


	March 31,			December 31,
(in thousands, except per share amounts)	2023			2022
ASSETS:
INVESTMENTS IN REAL ESTATE, at cost:
Operating properties	$	2,884,367		$	2,894,944
Construction in progress		43,109			42,659
Land held for development		2,058			2,058
Total investments in real estate		2,929,534			2,939,661
Accumulated depreciation		(1,377,167	)		(1,370,065	)
Net investments in real estate		1,552,367			1,569,596
INVESTMENTS IN PARTNERSHIPS, at equity:		7,621			7,845
OTHER ASSETS:
Cash and cash equivalents		20,240			22,937
Tenant and other receivables, net		33,972			40,459
Intangible assets, net		8,349			8,623
Deferred costs and other assets, net		86,754			91,902
Assets held for sale		35,036			61,767
Total assets	$	1,744,339		$	1,803,129
LIABILITIES:
Mortgage loans payable, net	$	740,167		$	749,396
Term Loans, net		971,506			976,903
Revolving Facility		22,481			22,481
Tenants’ deposits and deferred rent		14,099			13,264
Distributions in excess of partnership investments		96,092			93,136
Accrued expenses and other liabilities		69,930			69,846
Liabilities on assets held for sale		1,975			2,539
Total liabilities		1,916,250			1,927,565
COMMITMENTS AND CONTINGENCIES
EQUITY:
Series B Preferred Shares, $.01 par value per share; 3,450 shares issued and outstanding; liquidation preference of $103,741 and $102,151 at March 31, 2023 and December 31, 2022, respectively		35			35
Series C Preferred Shares, $.01 par value per share; 6,900 shares issued and outstanding; liquidation preference of $206,655 and $203,550 at March 31, 2023 and December 31, 2022, respectively		69			69
Series D Preferred Shares, $.01 par value per share; 5,000 shares issued and outstanding; liquidation preference of $148,634 and $146,485 at March 31, 2023 and December 31, 2022, respectively		50			50
Shares of beneficial interest, $1.00 par value per share; 13,333 shares authorized; 5,341 and 5,356 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively		5,341			5,356
Capital contributed in excess of par		1,858,851			1,858,675
Accumulated other comprehensive income		1,415			3,282
Distributions in excess of net income		(2,025,779	)		(1,980,693	)
Total equity (deficit) —Pennsylvania Real Estate Investment Trust		(160,018	)		(113,226	)
Noncontrolling interest		(11,893	)		(11,210	)
Total equity (deficit)		(171,911	)		(124,436	)
Total liabilities and equity	$	1,744,339		$	1,803,129

Pennsylvania Real Estate Investment Trust

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

(in thousands)


	March 31,			December 31,
	2023			2022
ASSETS:
Investments in real estate, at cost:
Operating properties	$	379,080		$	378,585
Construction in progress		5,111			5,095
Total investments in real estate		384,191			383,680
Accumulated depreciation		(125,517	)		(123,223	)
Net investments in real estate		258,674			260,457
Cash and cash equivalents		50,408			45,719
Deferred costs and other assets, net		40,694			39,639
Total assets		349,776			345,815
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		198,263			199,349
FDP Term Loan, net		39,160			52,214
Partnership Loans		123,452			107,004
Other liabilities		77,372			72,539
Total liabilities		438,247			431,106
Net investment	$	(88,471	)	$	(85,291	)
Reconciliation to comparable GAAP balance sheet item:
Investment in partnerships, at equity	$	7,621		$	7,845
Distributions in excess of partnership investments		(96,092	)		(93,136	)
Net investments and advances	$	(88,471	)	$	(85,291	)

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 March 31, 2023


		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		24		46,706		4.9		$	53.35	N/A		N/A			N/A			N/A			$	8.29
	Unconsolidated(4)		4		8,892		11.6			76.09	N/A		N/A			N/A			N/A				7.05
Total Under 10k sf			28		55,598		6.0		$	56.99	N/A		N/A			N/A			N/A			$	7.90

Over 10k sf	Consolidated		1		29,909		10.0			26.00	N/A		N/A			N/A			N/A				6.22
	Unconsolidated(4)										N/A		N/A			N/A			N/A
Total Over 10k sf			1		29,909		10.0			26.00													6.22
Total New Leases			29		85,507		7.4		$	46.15	N/A		N/A			N/A			N/A			$	7.11

Renewal Leases
Under 10k sf	Consolidated		36		85,147		3.4		$	61.48	$	62.07	$	(0.59	)		(0.9	%)		2.0	%	$	-
	Unconsolidated(4)		12		42,737		2.4		$	48.12	$	45.32		2.80			6.2	%		9.4	%		1.23
Total Under 10k sf			48		127,884		3.0		$	57.01	$	56.47	$	0.54			1.0	%		4.1	%	$	0.32

Over 10k	Consolidated		7		111,278		4.8			34.27		31.97		2.30			7.2	%		8.6	%	$	-
														-									-
Total Over 10k sf			7		111,278		4.8			34.27		31.97		2.30			7.2	%		8.6	%	$	-
Total Fixed Rent			55		239,162		3.9		$	46.43	$	45.07	$	1.36			3.0	%		5.6	%	$	0.14
Percentage in Lieu	Consolidated		27		76,581		2.6		$	33.56	$	33.29	$	0.27			0.8	%	N/A			$	0.50
	Unconsolidated(4)		1		13,011		3.0		$	18.06		23.01		(4.95	)		(21.5	%)	N/A				-
Total Percentage in Lieu			28		89,592		2.7		$	31.31		31.80		(0.49	)		(1.5	%)	N/A				0.42
Total Renewal Leases			83		328,754		3.5	`	$	42.31	$	41.45	$	0.85			2.1	%				$	0.19
Total Non Anchor			112		414,261		4.3		$	43.10

Anchor
New Leases	Consolidated										N/A		N/A			N/A			N/A			$	-
Renewal Leases	Consolidated		1		117,793		1.0		$	2.05	$	2.05	$	-			0.0	%					-
Total			1		117,793		1.0		$	2.05

(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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 for further details on our ownership interests in our unconsolidated properties. Our unconsolidated properties include 17 leases and 64,640 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


	March 31, 2023																							March 31, 2022
									Actual Occupancy						Leased Occupancy														Actual Occupancy
	% Rolling 12 Mo. NOI (3)			Average Comp Sales		Average Gross Rent(1)(2)		Occupancy Cost	Total			Non- Anchor			Total			Non- Anchor			% Rolling 12 Mo. NOI			Average Comp Sales		Average Gross Rent(1)(2)		Occupancy Cost	Total			Non- Anchor
Malls		93.8	%	$	603	$	55.99	11.0%		93.5	%		90.1	%		94.5	%		91.7	%		92.9	%	$	613	$	57.49	10.8%		92.6	%		88.6	%
Non-Core Malls		-0.2	%	$	368	$	35.31	9.3%		53.4	%		53.0	%		53.4	%		53.1	%		-0.2	%	$	315	$	36.07	12.2%		48.3	%		41.8	%
Malls Total		93.6	%	$	601	$	55.77	11.0%		91.0	%		88.4	%		92.0	%		90.0	%		92.7	%	$	609	$	57.16	10.8%		89.8	%		86.5	%
Other Retail Properties		4.9	%	n/a		$	19.39	n/a		99.4	%		99.3	%		100.0	%		100.0	%		5.1	%	n/a		$	19.00	n/a		98.0	%		97.8	%
Total Retail Properties		98.5	%	$	601	$	47.12	11.0%		91.7	%		89.7	%		92.6	%		91.1	%		97.9	%	$	609	$	48.10	10.8%		90.5	%		87.8	%
Sold Properties		1.9	%	n/a		n/a		n/a	n/a			n/a			n/a			n/a				2.6	%	$	450	$	41.89	9.2%		88.2	%		84.3	%
Other Properties		-0.4	%	n/a		n/a		n/a	n/a			n/a			n/a			n/a				-0.4	%	n/a				n/a
Total Portfolio		100.0	%	$	601	$	47.12	11.0%		91.7	%		89.7	%		92.6	%		91.1	%		100.0	%	$	609	$	47.56	10.8%		90.3	%		87.6	%

(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 $21.01 per square foot as of March 31, 2023 and $22.05 per square foot as of March 31, 2022.

(3) NOI is a non-GAAP measure. See definition of NOI on page 31.

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot


	March 31, 2023											March 31, 2022								Change
	% of Mall NOI (1)			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		14.0	%	$	940		93.6	%		92.3	%	$	938		92.4	%		90.9	%		0.2	%		1.2	%		1.4	%
Willow Grove Park		5.8	%		816		96.4	%		93.5	%		767		93.7	%		89.1	%		6.4	%		2.7	%		4.4	%
Lehigh Valley Mall		6.4	%	668			85.8	%		77.1	%	674			88.9	%		82.1	%		(0.9	%)		(3.1	%)		(5.0	%)
Woodland Mall		6.9	%	643			97.3	%		96.8	%	654			89.3	%		87.3	%		(1.7	%)		8.0	%		9.5	%
Dartmouth Mall		4.8	%		597		99.3	%		99.0	%		607		92.6	%		89.5	%		(1.6	%)		6.7	%		9.5	%
Springfield Town Center		10.6	%	580			90.2	%		86.8	%	575			89.3	%		85.6	%		0.9	%		0.9	%		1.2	%
		48.5	%	$	721		92.6	%		89.7	%	$	720		90.8	%		87.1	%		0.1	%		1.8	%		2.6	%

Malls 7-12
Mall at Prince Georges		8.2	%	$	539		98.5	%		97.6	%	$	591		99.1	%		98.4	%		(8.8	%)		(0.6	%)		(0.8	%)
Capital City Mall		6.0	%		531		98.7	%		98.0	%		551		97.2	%		95.8	%		(3.6	%)		1.5	%		2.2	%
Jacksonville Mall		4.2	%		523		98.7	%		97.4	%		545		99.6	%		99.3	%		(4.0	%)		(0.9	%)		(1.9	%)
Magnolia Mall		3.0	%		512		98.5	%		97.4	%		534		98.1	%		96.7	%		(4.1	%)		0.4	%		0.7	%
Viewmont Mall		4.2	%		508		98.4	%		96.8	%		544		98.8	%		97.5	%		(6.6	%)		(0.4	%)		(0.7	%)
Patrick Henry Mall		5.0	%		491		97.1	%		95.7	%		539		94.3	%		91.7	%		(8.9	%)		2.8	%		4.0	%
		30.6	%	$	518		98.4	%		97.2	%	$	553		98.0	%		96.6	%		-6.3	%		0.4	%		0.6	%

Malls 13-19
Valley Mall		5.0	%	$	479		96.7	%		92.5	%	$	507		97.9	%		95.2	%		(5.5	%)		(1.2	%)		(2.7	%)
Moorestown Mall		2.8	%		459		95.7	%		92.5	%		453		96.5	%		93.9	%		1.3	%		(0.8	%)		(1.4	%)
Plymouth Meeting Mall		4.0	%		441		85.4	%		80.0	%		407		87.2	%		81.2	%		8.4	%		(1.8	%)		(1.2	%)
Francis Scott Key Mall		3.9	%		413		96.1	%		93.8	%		455		93.2	%		89.4	%		(9.2	%)		2.9	%		4.4	%
Springfield Mall		1.5	%		410		95.4	%		95.4	%		484		89.5	%		89.5	%		(15.3	%)		5.9	%		5.9	%
Fashion District Philadelphia		3.9	%	n/a			79.0	%		73.3	%	n/a			78.1	%		72.2	%	n/a				0.9	%		1.1	%
		21.1	%	$	442		90.4	%		85.3	%	$	465		90.1	%		84.7	%		-4.9	%		0.3	%		0.6	%

All Core Malls		100.2	%	$	603		93.5	%		90.1	%	$	613		92.6	%		88.6	%		-1.6	%		0.9	%		1.5	%

Non-Core Malls
Exton Square Mall		-0.2	%	$	368		53.4	%		53.0	%		315		48.3	%		41.8	%		16.8	%		5.1	%		11.2	%
All Non-Core Malls		-0.2	%	$	368		53.4	%		53.0	%	$	315		48.3	%		41.8	%		16.8	%		5.1	%		11.2	%

Sold Malls
Cumberland Mall		0.0	%	n/a		n/a			n/a			$	450		95.1	%		92.0	%	n/a			n/a			n/a
Sold Malls		0.0	%			n/a			n/a			$	450		95.1	%		92.0	%

All Malls		100.0	%	$	601		91.0	%		88.4	%	$	609		90.0	%		86.8	%		-1.3	%		1.0	%		1.6	%

(1) NOI is a non-GAAP measure. See definition of NOI on page 31.

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants

March 31, 2023


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	28		6		34			4.1	%
Signet Jewelers Limited	Kay Jewelers, Piercing Pagoda, Piercing Pagoda Plus, Zales Jewelers, Banter by Piercing Pagoda	42		8		50			3.3	%
American Eagle Outfitters, Inc.	Aerie, American Eagle Outfitters, Offline	15		4		19			2.9	%
Dick's Sporting Goods, Inc.	Dick's Sporting Goods, Field & Stream	9		1		10			2.8	%
Victoria's Secret & Co.	Victoria's Secret, Pink	13		3		16			2.7	%
Dave & Buster's, Inc.	Dave & Buster's	3			1	4			2.0	%
Sycamore Partners	Hot Topic, Talbots, Torrid, AnnTaylor, Loft, Belk	34		7		41			1.9	%
JD Sports Fashion PLC	DTLR, Finish Line, JD Sports, Villa	13		2		15			1.8	%
Macy's	Bloomingdale's, Macy's	12		2		14			1.8	%
Genesco Inc.	Johnston & Murphy, Journeys, Journeys Kidz, Underground by Journeys	21		5		26			1.8	%
Express, Inc	Express, Express Factory Outlet, Express Men	10		3		13			1.7	%
Cineworld Group	Regal Cinemas	3		0		3			1.5	%
Bath & Body Works, Inc.	Bath & Body Works	16		3		19			1.4	%
Gap, Inc.	Banana Republic, Gap/Gap Kids, Old Navy	7			5	12			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		0		7			1.3	%
AMC Entertainment Holdings, Inc.	AMC	3			1	4			1.2	%
Luxottica Group S.p.A.	Lenscrafters, Pearle Vision, Sunglass Hut	19		6		25			1.2	%
Shoe Show, Inc.	Shoe Department, Shoe Dept. Encore	13			2	15			1.1	%
Copper Retail JV LLC	JC Penney	10			1	11			1.1	%
Total Top 20 Tenants		296		65		361			38.0	%
Total Leases			1,291	295			1,586		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 March 31, 2023.

Pennsylvania Real Estate Investment Trust

Lease Expirations as of March 31, 2023

(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
2023 and Prior		245		846,620		10.9	%		38,304		32,216		11.7	%		45.24
2024		295		932,243		12.0	%		43,167		37,991		13.8	%		46.30
2025		259		1,107,919		14.1	%		65,124		51,435		18.6	%		58.78
2026		162		842,335		10.8	%		33,344		29,844		10.8	%		39.59
2027		146		918,775		11.8	%		32,260		29,911		10.8	%		35.11
2028		116		819,710		10.5	%		30,998		28,750		10.4	%		37.82
2029		76		584,192		7.5	%		23,305		19,220		7.0	%		39.89
2030		65		469,148		6.0	%		20,447		17,692		6.4	%		43.58
2031		39		404,188		5.2	%		12,189		10,303		3.8	%		30.16
2032		35		261,732		3.4	%		9,771		7,584		2.8	%		37.33
Thereafter		36		605,446		7.8	%		13,207		10,881		3.9	%		21.81
Total/Average		1,474		7,792,308		100.0	%	$	322,116	$	275,827		100.0	%	$	41.34


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
2023 and prior		3		497,894		11.1	%		1,046		691		3.1	%		2.10
2024		2		218,332		4.9	%		983		983		4.4	%		4.50
2025		8		929,729		20.8	%		2,045		2,045		9.2	%		2.20
2026		5		352,845		7.9	%		3,688		2,414		10.9	%		10.45
2027		2		275,250		6.1	%		1,812		1,812		8.2	%		6.58
2028		11		1,295,984		29.0	%		7,183		7,183		32.5	%		5.54
2029		1		135,186		3.0	%		1,068		1,068		4.8	%		7.90
2030		2		85,718		1.9	%		1,522		1,522		6.9	%		17.75
2031		2		166,523		3.7	%		932		932		4.2	%		5.60
2032		1		85,162		1.9	%		340		340		1.5	%		3.99
Thereafter		4		433,408		9.7	%		3,173		3,173		14.3	%		7.32
Total/Average		41		4,476,031		100.0	%	$	23,792	$	22,163		100.0	%	$	5.32

(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 March 31, 2023


		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		178,041		6,678		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		396,988		53,451		1,310,952
						Macy's		304,600
Dartmouth Mall	Dartmouth, MA	JCPenney	2025		100,020	Macy's		140,000		106,859		146,780		3,400		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					153,512		127,644		178,815		850,851
		AMC	2034							36,535
		Round 1	2029							58,080
		City Winery	2025							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		173,187		23,937		748,646
		Sears (3)	2028		120,883
		Dick's Sporting Goods	2025							50,150
Jacksonville Mall	Jacksonville, NC	Belk	2026		72,510					123,079		120,838		6,594		492,626
		JCPenney	2025		51,812
		Sears (3)	2028		117,793
Lehigh Valley Mall	Allentown, PA	Boscov's	2023		164,694	JCPenney		207,292		185,631		290,071		140,964		1,200,652
		Macy's	2023		212,000
Magnolia Mall	Florence, SC	Belk	2028		115,793					96,175		133,341		8,601		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		191,823		31,649		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 March 31, 2023 (continued)


		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		225,481		12,726		717,921
		JCPenney	2025		85,212	Macy's		140,000
Plymouth Meeting Mall	Plymouth Meeting, PA	Boscov's	2028		188,429	Whole Foods		65,155		159,504		199,783		124,281		917,844
		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		191,912		10,263		610,651
						Target		195,899
Springfield Town Center	Springfield, VA	Macy's	2035		252,245	JCPenney		209,144		181,785		316,644		96,742		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		234,124		12,425		846,208
		Target	2029		135,186
Valley Mall	Hagerstown, MD	JCPenney	2025		157,455					78,992		208,694		27,432		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		159,095		8,639		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		103,217		256,023		23,104		1,060,797
		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		305,719		15,511		982,252
						Macy's		157,316
		Phoenix Theatres	2037							46,922
Total Core Malls					4,116,343			3,360,002		3,278,437		3,856,188		785,212		15,396,182

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2023 (continued)


		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		137,105		377,200		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		255,465		384,480		2,934,632
Total Portfolio					4,479,519			4,289,144		4,280,806		4,111,653		1,169,692		18,330,814

(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)


	March 31, 2023
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Debt(1)
Core Malls
Capital City Mall	$	138,521	$	-	$	67,136	$	71,385	$	-
Cherry Hill Mall		474,580		-		294,776		179,804		237,169
Dartmouth Mall		90,512		110		53,251		37,371		53,303
Francis Scott Key Mall		96,635		-		51,585		45,050		51,810
Jacksonville Mall		93,250		-		48,192		45,058		-
Magnolia Mall		106,059		-		58,853		47,206		-
Moorestown Mall		175,770		-		89,356		86,414		-
Patrick Henry Mall		158,207		-		86,429		71,778		82,544
Plymouth Meeting Mall		129,832		-		78,486		51,346		-
The Mall at Prince George's		137,459		82		80,466		57,075		-
Springfield Town Center		497,610		3,842		109,880		391,572		-
Valley Mall		148,989		1,229		64,074		86,144		-
Viewmont Mall		122,157		-		64,427		57,730		67,185
Willow Grove Park		233,036		37,716		127,849		142,903		144,243
Woodland Mall		281,750		130		102,407		179,473		105,650
Total Core Malls		2,884,367		43,109		1,377,167		1,550,309		741,904

Total Malls	$	2,884,367	$	43,109	$	1,377,167	$	1,550,309	$	741,904

Other Properties
Land held for development		2,058		-		-		2,058		-
Total Investment in Real Estate	$	2,886,425	$	43,109	$	1,377,167	$	1,552,367	$	741,904

Assets Held For Sale
Exton Mall		28,549		-		-		28,549		-
Mall at Prince George's		4,861		-		-		4,861		-
Moorestown		447		-		-		447		-
Woodland Mall		1,054		-		-		1,054		-
Cumberland Mall		125		-		-		125		-
Total held for sale	$	35,036	$	-	$	-	$	35,036	$	-

(1)

Refer to page 23-29 for further debt information regarding consolidated properties.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate – Equity Method Investments at Ownership Share

(in thousands)


	March 31, 2023
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation			Net Real Estate		Debt(1)
Unconsolidated Malls
Fashion District Philadelphia	$	166,946	$	875	$	(10,703	)	$	157,118	$	162,612
Lehigh Valley Mall		57,513		632		(33,725	)		24,420		90,140
Springfield Mall		58,749		60		(28,934	)		29,875		28,127
Total Unconsolidated Malls	$	283,208	$	1,567	$	(73,362	)	$	211,413	$	280,879

Unconsolidated Other Retail Properties
Metroplex Shopping Center		46,518		2,779		(29,050	)		20,247		34,065
The Court at Oxford Valley		28,411		-		(14,430	)		13,981		27,500
Red Rose Commons		14,598		-		(6,249	)		8,349		16,442
Total Unconsolidated Other Retail Properties	$	89,527	$	2,779	$	(49,729	)	$	42,577	$	78,007
Unconsolidated Property Under Development
Pavilion at Market East		6,345		765		(2,426	)		4,684		3,065
Total Investment in Real Estate	$	379,080	$	5,111	$	(125,517	)	$	258,674	$	361,951

(1)

Refer to pages 23-29 for further debt information regarding equity method investments at ownership share.

Pennsylvania Real Estate Investment Trust

Capital Expenditures

Three Months Ended March 31, 2023

(in thousands)


	Consolidated		PREIT's Share of Equity Method Investments		Total
Redevelopment projects with incremental GLA and/or anchor replacement (1)	$	1,217	$	169	$	1,386
Tenant allowances		4,544		316		4,860
Recurring capital expenditures:
CAM expenditures		537		25		562
Non-CAM expenditures		-		-		-
Total recurring capital expenditures		537		25		562
Total	$	6,298	$	510	$	6,808

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

Pennsylvania Real Estate Investment Trust

Debt Analysis as of March 31, 2023

(in thousands)


	Outstanding Debt
	Fixed Rate (1)			% of Total Indebtedness			Variable Rate			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable (2)	$	617,259			29.4	%	$	124,645			5.9	%	$	741,904			35.3	%
Unconsolidated mortgage loans payable (3)		199,339			9.5	%		-			0.0	%		199,339			9.4	%
Consolidated Term Loans (4)		300,000			14.3	%		673,365			32.1	%		973,365			46.4	%
Unconsolidated Term Loans (5)		123,452			5.8	%		39,160			1.9	%		162,612			7.7	%
2020 Revolving Facility		-			0.0	%		22,481			1.1	%		22,481			1.2	%
Total Outstanding Debt	$	1,240,050			59.0	%	$	859,651			41.0	%	$	2,099,701			100.0	%
Average Stated Interest Rate		6.15	%					11.84	%					8.48	%

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

(2) Excludes deferred financing costs of $1,737.

(3) Reflects our share of mortgage debt of equity method investees. Excludes our share of deferred financing costs of $946.

(4) Excludes deferred financing costs of $1,859.

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


		Average Debt Balance
		Mortgage Debt			Revolving Facility		Term Loans			Total
Beginning Balance	12/31/2022	$	951,808		$	22,481	$	1,138,404		$	2,112,693
Mortgage loan amortization and repayments, including our share of debt of equity method investees			(10,565	)		-		-			(10,565	)
First Lien Term Loan Paydown			-			-		(26,312	)		(26,312	)
2018 FDP Term Loan Paydown			-			-		(13,055	)		(13,055	)
2020 and 2022 FDP Partnership Loan Borrowing			-			-		16,449			16,449
Second Lien Term Loan PIK Interest			-			-		20,491			20,491
Ending Balance	3/31/2023	$	941,243		$	22,481	$	1,135,977		$	2,099,701
Weighted Average Balance		$	949,156		$	22,481	$	1,137,127		$	2,108,764

Pennsylvania Real Estate Investment Trust

Debt Analysis as of March 31, 2023 (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 (2)	$	9,340	$	(1,497	)	$	427,817	$	22,481	$	973,365	$	(1,859	)	$	1,429,647
2024		10,242		(455	)		118,995		-		39,160		-			167,942
2025		9,031		(225	)		240,709		-		-		-			249,515
2026		4,162		(126	)		-		-		-		-			4,036
2027		3,859		(118	)		79,789		-		100,000		-			183,530
Thereafter		5,774		(262	)		31,525		-		23,452		-			60,489
	$	42,408	$	(2,683	)	$	898,835	$	22,481	$	1,135,977	$	(1,859	)	$	2,095,159

(1) The weighted average period to total debt maturity is 1.39 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.

(2) Includes Cherry Hill Mall mortgage for which, subsequent to March 31, 2023, the maturity date was extended through December 1, 2023.


Weighted Average Mortgage Interest Rates
Year	Balance (1)		Interest Rate
2023 (2)	$	430,187		5.13	%
2024		118,995		7.38	%
2025		257,979		4.11	%
2026		-		0.00	%
2027		90,140		4.06	%
Thereafter		43,942		3.23	%
Total	$	941,243		4.94	%

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

(2) Includes Cherry Hill Mall mortgage for which, subsequent to March 31, 2023, the maturity date was extended through December 1, 2023.

Pennsylvania Real Estate Investment Trust

Debt Schedule as of March 31, 2023

(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 (1)	$	237,169			3.90	%	$	16,980	$	237,169	May 2023	May 2023
Dartmouth Mall		53,303			3.97	%		3,825		52,996	April 2023	April 2023
Metroplex Shopping Center (2)		34,064			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		82,544			4.35	%		5,748		77,591	July 2025	July 2025
Pavilion East Associates (2)		3,065			5.50	%		268		3,065	October 2025	October 2027
Springfield Mall (2)		28,127			4.45	%		1,964		26,299	October 2025	October 2025
Willow Grove Park		144,243			3.88	%		9,599		133,754	October 2025	October 2025
Lehigh Valley Mall (2)		90,140			4.06	%		5,768		79,789	November 2027	November 2027
Red Rose Commons (2)		16,443			3.28	%		978		13,183	July 2031	July 2031
The Court at Oxford Valley (2)		27,500			3.20	%		2,058		18,343	July 2031	July 2031

Total Fixed Rate Mortgage Loans	$	816,598			4.40	%	$	57,196	$	775,690

Variable Rate Mortgage Loans
Woodland Mall	$	105,650			8.50	%	$	13,180	$	104,150	June 2023	October 2023
Francis Scott Key Mall		11,810			8.38	%		990		11,810	June 2024	June 2025
Viewmont Mall		7,185			8.38	%		602		7,185	June 2024	June 2025
Total Variable Rate Mortgage Loans	$	124,645			8.48	%	$	14,772	$	123,145
Total Mortgage Loans	$	941,243			4.94	%	$	71,968	$	898,835

Consolidated Mortgage Loans	$	741,904			5.16	%	$	58,114	$	724,656
Consolidated Deferred Financing Fees		(1,737	)	N/A			N/A		N/A
Unconsolidated Mortgage Loans		199,339			4.11	%		13,854		174,180
Unconsolidated Deferred Financing Fees		(946	)	N/A			N/A		N/A
First Lien Term Loan (3)		305,739			8.47	%		25,908		305,739	December 2023	December 2023
Second Lien Term Loan		667,626			12.81	%		85,496		667,626	December 2023	December 2023
2018 FDP Term Loan		39,160			8.27	%		3,237		39,160	January 2024	January 2024
Term Loan Deferred Financing Fees		(1,859	)	N/A			N/A		N/A
First Lien Revolver		22,481			8.17	%		1,837		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		23,452			15.00	%		3,518		23,452	August 2029	August 2029
Total	$	2,095,159			8.48	%	$	206,964	$	2,057,293
Amortization of Deferred Financing Fees	—				-0.02	%	—		—
Effective Interest Rate	$	2,095,159			8.50	%	$	206,964	$	2,057,293

(1) Cherry Hill Mall mortgage for which, subsequent to March 31, 2023, the maturity date was extended through December 1, 2023.

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

(3) 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


	March 31, 2023
Debt Yield Ratio (1)
Maintain a minimum Debt Yield Ratio (Senior) of 11.35% from and after June 30, 2021	22.07%
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	8.56%
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	$	117.0

(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 March 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 March 31, 2023 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;

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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;

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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 our Annual Report on Form 10-K for the year ended December 31, 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 three months ended March 31, 2023 and 2022, respectively, to show the effect of such items as provision for employee separation expense, gain on sale of preferred equity interest, depreciation and amortization on real estate at PREIT’s consolidated properties, PREIT’s share of depreciation and amortization of equity method investments and loss on project costs by equity method investee, 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 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, and gain on sale of preferred equity interest.

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, net, equity in loss of partnerships, gain/loss on project costs by equity method investee, and gain 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