Exhibit 99.1
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Pennsylvania Real Estate Investment Trust
QUARTERLY SUPPLEMENTAL DISCLOSURE
(September 30, 2005)
www.preit.com
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Table of Contents
Company Information | 1 | |
Timeline/Recent Developments | 2 | |
Stock Information | 3 | |
Market Capitalization and Capital Resources | 4 | |
Balance Sheet—Wholly Owned and Partnerships Detail | 5 | |
Balance Sheet—Property Type | 6 | |
Income Statement—Wholly Owned and Partnerships Detail -Quarterly Comparison | 7 | |
Income Statement—Property Type- Quarterly Comparison | 8 | |
Income Statement—Retail (Property Status) -Quarterly Comparison | 9 | |
Income Statement—Retail (Property Subtype) -Quarterly Comparison | 10 | |
FFO and FAD | 11 | |
Key Ratios | 12 | |
Property Debt Schedule | 13 | |
Debt Amortization Schedule | 14 | |
Debt Analysis | 15 | |
Debt Ratios | 16 | |
Portfolio Summary—Retail | 17A | |
Property Acquisitions/Dispositions- Quarterly Summary | 18 | |
Property Development/Redevelopment Summary | 19 | |
Top Twenty Tenants Schedule | 20 | |
Lease Expiration Schedule - Anchor Tenants | 21 | |
Lease Expiration Schedule - Non-Anchor Tenants | 22 | |
New Lease/Renewal Summary and Analysis | 23 | |
Capital Expenditures-Quarterly | 24 | |
Enclosed Mall-Summary and Occupancy | 25 | |
Enclosed Mall-Rent Summary | 26 | |
Power Center- Summary and Occupancy | 27 | |
Strip Center- Summary and Occupancy | 28 | |
Retail Overall- Summary and Occupancy | 29 | |
RECONCILIATION TO GAAP: | ||
Balance Sheet-Reconciliation to GAAP | 30 | |
Income Statement-Reconciliation to GAAP -Quarterly | 31 | |
Definitions page | 32 |
THIS QUARTERLY SUPPLEMENTAL DISCLOSURE CONTAINS CERTAIN “FORWARD-LOOKING STATEMENTS” THAT RELATE TO EXPECTATIONS, PROJECTIONS, ANTICIPATED EVENTS, TRENDS AND OTHER MATTERS THAT ARE NOT HISTORICAL FACTS. THESE FORWARD-LOOKING STATEMENTS REFLECT PREIT’S CURRENT VIEWS ABOUT FUTURE EVENTS AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS THAT MAY CAUSE FUTURE EVENTS, ACHIEVEMENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED BY THE FORWARD-LOOKING STATEMENTS. PREIT’S BUSINESS IS SUBJECT TO UNCERTAINTIES REGARDING THE REVENUES, OPERATING EXPENSES, LEASING ACTIVITIES, OCCUPANCY RATES, AND OTHER COMPETITIVE FACTORS RELATING TO PREIT’S PORTFOLIO AND CHANGES IN LOCAL MARKET CONDITIONS AS WELL AS GENERAL ECONOMIC, FINANCIAL AND POLITICAL CONDITIONS, WHICH MAY CAUSE FUTURE EVENTS, ACHIEVEMENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED BY THE FORWARD-LOOKING STATEMENTS. PREIT DISCLAIMS ANY DUTY TO UPDATE ANY FORWARD-LOOKING STATEMENTS SET FORTH IN THIS QUARTERLY SUPPLEMENTAL DISCLOSURE TO REFLECT NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. INVESTORS ARE ALSO DIRECTED TO CONSIDER THE RISKS DISCUSSED IN DOCUMENTS PREIT HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AND, IN PARTICULAR, PREIT’S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2004.
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
COMPANY INFORMATION
PENNSYLVANIA REIT
200 South Broad Street, Philadelphia, PA 19102
http://www.preit.com
Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls and power centers located in the eastern United States. As of October 31, 2005, PREIT's portfolio consists of 51 properties (approximately 32.8 million square feet) in 12 states. PREIT’s portfolio includes 37 shopping malls, 13 strip and power centers and one office property. PREIT is headquartered in Philadelphia, Pennsylvania.
Research Coverage
Company | Analyst | Phone Number | ||
Green Street Advisors | Gregory R. Andrews | (949) 640-8780 | ||
Ben Yang | (949) 640-8780 | |||
JP Morgan | Michael W. Mueller | (212) 622-6689 | ||
Anthony Paolone | (212) 622-6682 | |||
Joshua Bederman | (212) 622-6530 | |||
Legg Mason Wood Walker | David M. Fick | (410) 539-0000 | ||
Nathan Isbee | (410) 454-4143 | |||
Lehman Brothers | David Harris | (212) 526-1790 | ||
Alexander D. Goldfarb | (212) 526-5232 |
Quarterly Earnings Schedule
PREIT’s quarterly results will be announced in accordance with the following schedule:
Quarter | 2005 | 2004 | |||
First Quarter | 5/2/2005 | 5/5/2004 | |||
Second Quarter | 8/4/2005 | 8/5/2004 | |||
Third Quarter | 10/31/2005 | 11/8/2004 | |||
Fourth Quarter | 2/28/2006 | (1) | 3/3/2005 |
(1) | Tentative dates. |
To participate in a quarterly conference call, please contact PREIT's investor relations department at (215) 875-0735.
For additional information, please contact:
Robert McCadden or Nurit Yaron
200 South Broad Street
Philadelphia, PA 19102
Phone (215) 875-0700 Toll Free (866) 875-0700
Fax (215) 546-7311 Email yaronn@preit.com
PAGE 1
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Time Line/Recent Developments
October 31, 2005 - Pennsylvania Real Estate Investment Trust announced that its Board of Trustees authorized a program to repurchase up to $100 million of the Company’s common shares.
October 28, 2005 - Pennsylvania Real Estate Investment Trust announced that its Board of Trustees declared a quarterly cash dividend of $0.57 per common share. PREIT also announced that its Board of Trustees declared a regular quarterly dividend of $1.375 per share on its 11.00% senior preferred shares.
October 7, 2005 - Pennsylvania Real Estate Investment Trust announced that it intends to release its financial results for the third quarter and nine -months ended September 30, 2005, on Monday, October 31, 2005. It also announced that management will hold a conference call that day at 3:00 p.m. Eastern Time to review the Company's third quarter and nine-month results, market trends and future outlook.
October 3, 2005 - Pennsylvania Real Estate Investment Trust announced that it has completed the previously announced refinancing of Cherry Hill Mall in Cherry Hill, New Jersey with a new $200 million first mortgage loan from Prudential Insurance Company of America and Northwestern Mutual. The loan has an interest rate of 5.42% and will mature in October 2012. Under the terms of the mortgage, PREIT will have the ability to convert the loan to a senior unsecured loan under prescribed conditions, including the achievement of a specified credit rating.
September 19, 2005 - Pennsylvania Real Estate Investment Trust and Simon Property Group (NYSE: SPG) (“Simon”) announced that they have entered into agreements under which PREIT and Kravco Simon Investments, L.P., a Simon affiliate, will acquire Springfield Mall in Springfield, Pennsylvania for approximately $103.5 million. PREIT and Kravco Simon will each have a 50% ownership interest in the property.
September 14, 2005 - Pennsylvania Real Estate Investment Trust announced revised redevelopment plans for the Echelon Mall in Voorhees, New Jersey, and will rename the property Voorhees Town Center.
August 10, 2005 - Pennsylvania Real Estate Investment Trust announced that its Board of Trustees declared a quarterly cash dividend of $0.57 per common share. PREIT also announced that its Board of Trustees has declared a regular quarterly dividend of $1.375 per share on its 11.00% senior preferred shares.
August 4, 2005 - PREIT announced its second quarter and six-month 2005 results. Net income available to common shareholders was $0.36 per diluted share. FFO per common share and Operating Partnership unit (“share”) was $0.84.
August 4, 2005 - PREIT announced three redevelopment initiatives: Plymouth Meeting Mall (Whole Foods), Lycoming Mall (Dick’s Sporting Goods, Borders, and Best Buy), and South Mall (Ross Dress For Less). The Company also reports continued progress on its redevelopment program.
July 20, 2005 - PREIT announced that it intended to release its financial results for the second quarter and six months ended June 30, 2005, on Thursday, August 4, 2005. It also announced that management will hold a conference call that day at 3:00 PM EDT to review the Company’s results, market trends and future outlook.
July 12, 2005 - PREIT announced that it had completed a $66.0 million refinancing of the mortgage loan on Magnolia Mall in Florence, South Carolina.
NOTE: The press releases are available on the Company’s website at www.preit.com.
PAGE 2
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Stock Information
PREIT’s common stock trades on the New York Stock Exchange (symbol: PEI).
PREIT’s preferred stock trades on the New York Stock Exchange (symbol: PEIPRA).
Q3:9/30/05 | Q2:6/30/05 | Q1:3/31/05 | CY:12/31/04 | Q3:9/30/04 | CY:12/31/03 | |||||||||||||||||||
High Price | $ | 50.20 | $ | 48.10 | $ | 43.21 | $ | 43.70 | 38.85 | $ | 36.30 | |||||||||||||
Low Price | $ | 39.60 | $ | 39.66 | $ | 38.91 | $ | 30.25 | 33.40 | $ | 24.70 | |||||||||||||
Close | $ | 42.18 | $ | 47.50 | $ | 40.32 | $ | 42.80 | 38.66 | $ | 36.30 | |||||||||||||
Average Daily Trading Volume | 165,764 | 119,916 | 146,698 | 161,659 | 122,095 | 109,892 | ||||||||||||||||||
Common Shares Outstanding | 36,714,465 | 36,511,624 | 36,474,699 | 36,272,162 | 36,094,567 | 35,544,265 | ||||||||||||||||||
O.P. Units | 4,499,800 | 4,686,418 | 4,686,418 | 4,413,559 | 4,429,030 | 3,691,516 | ||||||||||||||||||
Total Shares Outstanding | 41,214,265 | 41,198,042 | 41,161,117 | 40,685,721 | 40,523,597 | 39,235,781 | ||||||||||||||||||
Weighted Average of Common Shares | 36,148,847 | 36,024,984 | 35,972,274 | 35,609,350 | 35,695,353 | 20,389,577 | ||||||||||||||||||
Weighted Average of O.P. units | 4,592,689 | 4,686,418 | 4,583,338 | 4,183,059 | 4,435,878 | 2,303,449 | ||||||||||||||||||
Weighted Average Common Shares and O.P. Units | 40,741,536 | 40,711,402 | 40,555,612 | 39,792,409 | 40,131,231 | 22,693,026 | ||||||||||||||||||
Preferred Shares, Nominal Value | $ | 123,750,000 | $ | 123,750,000 | $ | 123,750,000 | $ | 123,750,000 | $ | 123,750,000 | $ | 123,750,000 | ||||||||||||
Market Value of Shares (based on closing price) | $ | 1,862,167,698 | $ | 2,080,656,995 | $ | 1,783,366,237 | $ | 1,865,098,859 | $ | 1,690,392,260 | $ | 1,548,008,850 | ||||||||||||
Distribution Information for Common Shares | ||||||||||||||||||||||||
Q3:9/30/05 | Q2:6/30/05 | Q1:3/31/05 | CY:12/31/04 | Q3:9/30/04 | CY:12/31/03 | |||||||||||||||||||
Dividend per share | $ | 0.570 | $ | 0.570 | $ | 0.540 | $ | 2.160 | $ | 0.540 | $ | 2.070 | ||||||||||||
Annualized Dividend Yield (1) | 5.4 | % | 4.8 | % | 5.4 | % | 5.0 | % | 5.6 | % | 5.7 | % | ||||||||||||
Capital Gain Pre-May 6 | N/A | N/A | N/A | $ | 0.026 | $ | 0.026 | $ | 0.096 | |||||||||||||||
Capital Gain Post-May 5 | N/A | N/A | N/A | $ | — | $ | — | $ | 0.213 | |||||||||||||||
Section 1250 Gain | N/A | N/A | N/A | $ | 0.026 | $ | 0.026 | $ | 0.480 | |||||||||||||||
Return of Capital/Non-Taxable | N/A | N/A | N/A | $ | 0.517 | $ | 0.182 | $ | 0.085 | |||||||||||||||
Qualified 5 Year Gain (incl. in cap. Gain) | N/A | N/A | N/A | $ | — | $ | — | $ | — | |||||||||||||||
Ordinary Income | N/A | N/A | N/A | $ | 1.617 | $ | 0.332 | $ | 1.196 |
(1) | Based on closing stock price for the period. |
Shareholder Information
Ten Largest Institutional Shareholders: Common Shares Held(1) | 9/30/2005 | ||
RREEF Real Estate Securities Advisers, L.P. | 4,639,282 | ||
Vanguard Group, Inc. | 1,702,472 | ||
Barclays Global Investors | 1,612,362 | ||
J.P Morgan Investment Management Inc. (NY) | 1,366,861 | ||
ING Clarion Real Estate Securities | 1,269,353 | ||
Neuberger Berman, LLC | 913,397 | ||
ABP Investment U.S., Inc | 843,800 | ||
State Street Global Advisors | 714,389 | ||
Fidelity Management & Research | 563,500 | ||
ABN AMRO Asset Management (USA) Inc. | 522,000 | ||
TOTAL of Ten Largest Institutional: | 14,147,416 | ||
TOTAL of all Institutional holders: | 23,716,534 | ||
Ten Largest as % of Total Institutional: | 59.7 | % |
(1) | Based on 13F filings as of 9/30/05 or most recent filings. |
Breakdown of | 9/30/2005 | 9/30/04 | % of 9/30/05 total | ||||
Institutional(1) | 23,716,534 | 19,667,756 | 57.5 | % | |||
Retail(2) | 11,922,081 | 16,622,056 | 28.9 | % | |||
Insiders(3) | 5,575,650 | 4,233,785 | 13.5 | % | |||
TOTAL | 41,214,265 | 40,523,597 | 100.0 | % |
(1) | Based on 13F filings as of 9/30/05 or most recent filings. |
(2) | Retail ownership equals total shares outstanding minus institutional and insider ownership. |
(3) | Insider holdings as of 4/1/05. (Shares and O.P. Units only. Excludes 433,865 exercisable options). |
Share Ownership by Insiders: | As of 4/1/05(2) | % of Total (3) | Interim Net Purchases of Shares(4) | As of 4/1/04(5) | % of Total (6) | ||||||||
Mark Pasquerilla | 2,289,005 | 5.6 | % | (109,068 | ) | 2,398,073 | 5.9 | % | |||||
Ronald Rubin | 1,532,162 | 3.7 | % | 672,693 | 859,469 | 2.1 | % | ||||||
George F. Rubin | 785,773 | 1.9 | % | 350,848 | 434,925 | 1.1 | % | ||||||
Stephen B. Cohen | 471,030 | 1.1 | % | N/A | N/A | N/A | |||||||
Leonard I. Korman | 365,100 | 0.9 | % | 1,625 | 363,475 | 0.9 | % | ||||||
Edward A. Glickman | 255,598 | 0.6 | % | 29,742 | 225,856 | 0.6 | % | ||||||
Jonathan B. Weller | 172,709 | 0.4 | % | 6,973 | 165,736 | 0.4 | % | ||||||
Joseph F. Coradino | 142,808 | 0.3 | % | 17,765 | 125,043 | 0.3 | % | ||||||
Jeffrey A. Linn | 71,868 | 0.2 | % | (582 | ) | 72,450 | 0.2 | % | |||||
Douglas S. Grayson | 55,582 | 0.1 | % | 10,276 | 45,306 | 0.1 | % | ||||||
Robert F. McCadden | 47,356 | 0.1 | % | N/A | N/A | N/A | |||||||
David J. Bryant | 29,857 | 0.1 | % | 4,963 | 24,894 | 0.1 | % | ||||||
Bruce Goldman | 22,128 | 0.1 | % | 5,629 | 16,499 | 0.0 | % | ||||||
Lee H. Javitch | 17,000 | 0.0 | % | 1,625 | 15,375 | 0.0 | % | ||||||
Rosemarie B. Greco | 11,000 | 0.0 | % | 1,625 | 9,375 | 0.0 | % | ||||||
Ira Lubert | 7,750 | 0.0 | % | 2,250 | 5,500 | 0.0 | % | ||||||
Donald Mazziotti | 4,307 | 0.0 | % | 2,322 | 1,985 | 0.0 | % | ||||||
John J. Roberts | 3,250 | 0.0 | % | 2,250 | 1,000 | 0.0 | % | ||||||
TOTAL(7) | 6,009,515 | 14.6 | % | 1,000,936 | 4,708,120 | 11.4 | % | ||||||
(1) | Current ownership information is available on the Company website and in SEC filings. |
(2) | Source of Insider Ownership: Proxy dated April 18, 2005. Refer to footnotes in proxy for details on beneficial ownership. |
(3) | Based on fully diluted shares outstanding as of September 30, 2005. |
(4) | Includes purchases and sales of shares, issuance of restricted stocks awards, issuances of O.P. units, and exercisable options. |
(5) | Source of Insider Ownership: Proxy dated April 29, 2004. Refer to footnotes in proxy for details on beneficial ownership. |
(6) | Based on fully diluted shares outstanding as of September 30, 2004. |
(7) | In certain instances, two trustees beneficially own the same shares because they share voting or investment power over the shares. |
These shares have been counted only once in the total.
PAGE 3
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
MARKET CAPITALIZATION
September 30, 2005 | June 30, 2005 | March 31, 2005 | December 31, 2004 | September 30, 2004 | December 31, 2003 | |||||||||||||||||||
EQUITY CAPITALIZATION | ||||||||||||||||||||||||
Shares Outstanding | 36,714,465 | 36,511,624 | 36,474,699 | 36,272,162 | 36,094,567 | 35,544,265 | ||||||||||||||||||
O.P. Units Outstanding | 4,499,800 | 4,686,418 | 4,686,418 | 4,413,559 | 4,429,030 | 3,691,516 | ||||||||||||||||||
TOTAL Shares and O.P. Units | 41,214,265 | 41,198,042 | 41,161,117 | 40,685,721 | 40,523,597 | 39,235,781 | ||||||||||||||||||
Market Price (at end of period) | $ | 42.18 | $ | 47.50 | $ | 40.32 | $ | 42.80 | $ | 38.66 | $ | 36.30 | ||||||||||||
Preferred Shares, Nominal Value | $ | 123,750,000 | $ | 123,750,000 | $ | 123,750,000 | $ | 123,750,000 | $ | 123,750,000 | $ | 123,750,000 | ||||||||||||
Equity Market Capitalization | $ | 1,862,167,698 | $ | 2,080,656,995 | $ | 1,783,366,237 | $ | 1,865,098,859 | $ | 1,690,392,260 | $ | 1,548,008,850 | ||||||||||||
DEBT CAPITALIZATION | ||||||||||||||||||||||||
Unsecured Debt Balance | $ | 276,000,000 | $ | 431,000,000 | $ | 402,000,000 | $ | 271,000,000 | $ | 112,000,000 | $ | 170,000,000 | ||||||||||||
Secured Debt Balance | 1,442,536,218 | 1,284,981,735 | 1,307,545,347 | 1,326,127,000 | 1,366,090,242 | 1,396,262,538 | ||||||||||||||||||
Debt Capitalization | $ | 1,718,536,218 | $ | 1,715,981,735 | $ | 1,709,545,347 | $ | 1,597,127,000 | $ | 1,478,090,242 | $ | 1,566,262,538 | ||||||||||||
TOTAL MARKET CAPITALIZATION | $ | 3,580,703,916 | $ | 3,796,638,730 | $ | 3,492,911,584 | $ | 3,462,225,859 | $ | 3,168,482,502 | $ | 3,114,271,388 | ||||||||||||
Preferred Shares/Total Market Capitalization | 3.5 | % | 3.3 | % | 3.5 | % | 3.6 | % | 3.9 | % | 4.0 | % | ||||||||||||
Shares and O.P. Units/Total Market Capitalization | 48.5 | % | 51.5 | % | 47.5 | % | 50.3 | % | 49.4 | % | 45.7 | % | ||||||||||||
Debt Capitalization/Total Market Capitalization | 48.0 | % | 45.2 | % | 48.9 | % | 46.1 | % | 46.6 | % | 50.3 | % | ||||||||||||
Equity Capitalization/Total Market Capitalization | 52.0 | % | 54.8 | % | 51.1 | % | 53.9 | % | 53.4 | % | 49.7 | % | ||||||||||||
Unsecured Debt Balance/Total Debt | 16.1 | % | 25.1 | % | 23.5 | % | 17.0 | % | 7.6 | % | 10.9 | % | ||||||||||||
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CAPITAL RESOURCES
September 30, 2005 | June 30, 2005 | March 31, 2005 | December 31, 2004 | September 30, 2004 | December 31, 2003 | |||||||||||||||||||
Cash on Hand | $ | 32,012,926 | $ | 30,308,297 | $ | 34,378,813 | $ | 45,652,723 | $ | 35,824,104 | $ | 46,883,041 | ||||||||||||
Line of Credit Capacity (1) | $ | 500,000,000 | $ | 500,000,000 | $ | 500,000,000 | $ | 500,000,000 | $ | 500,000,000 | $ | 500,000,000 | ||||||||||||
Amount Used (includes letters of credit) | (289,335,396 | ) | (448,985,396 | ) | (410,054,533 | ) | (279,054,533 | ) | (114,124,533 | ) | (170,500,000 | ) | ||||||||||||
Available LOC(2) | $ | 210,664,604 | $ | 51,014,604 | $ | 89,945,467 | $ | 220,945,467 | $ | 385,875,467 | $ | 329,500,000 | ||||||||||||
Shelf Registration | $ | 1,000,000,000 | $ | 1,000,000,000 | $ | 1,000,000,000 | $ | 1,000,000,000 | $ | 1,000,000,000 | $ | 1,000,000,000 | ||||||||||||
Amount Used | (344,146,042 | ) | (344,146,042 | ) | (344,146,042 | ) | (344,146,042 | ) | (344,146,042 | ) | (344,146,042 | ) | ||||||||||||
Available Shelf | $ | 655,853,958 | $ | 655,853,958 | $ | 655,853,958 | $ | 655,853,958 | $ | 655,853,958 | $ | 655,853,958 | ||||||||||||
TOTAL CAPITAL RESOURCES | $ | 898,531,488 | $ | 737,176,859 | $ | 780,178,238 | $ | 922,452,148 | $ | 1,077,553,529 | $ | 1,032,236,999 | ||||||||||||
(1) | The unsecured credit facility established in November 2003 and amended in January 2005 gives PREIT the ability to increase the facility to $650 million under prescribed conditions. |
(2) | The available line of credit is subject to covenants that may restrict amounts that can be borrowed. |
PAGE 4
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
BALANCE SHEET
(Wholly Owned vs. Partnerships)
September 30, 2005 | December 31, 2004 | |||||||||||||||||||||||||||||||
PREIT Wholly Owned | PREIT’s % of Partnerships (5) | Corporate | Combined TOTAL | PREIT Wholly Owned | PREIT’s % of Partnerships (5) | Corporate | Combined TOTAL | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Investments in Real Estate, at cost | ||||||||||||||||||||||||||||||||
Retail Properties(1) | $ | 2,637,944,891 | $ | 121,251,756 | — | $ | 2,759,196,647 | $ | 2,518,364,388 | $ | 131,343,981 | — | $ | 2,649,708,369 | ||||||||||||||||||
Office/Industrial Properties | 1,502,711 | — | — | 1,502,711 | 2,504,211 | — | — | 2,504,211 | ||||||||||||||||||||||||
Land Held for Development | 6,099,758 | — | — | 6,099,758 | 9,862,704 | — | — | 9,862,704 | ||||||||||||||||||||||||
Construction In Progress | 58,533,501 | 2,117,463 | — | 60,650,964 | 10,952,450 | 2,542,307 | — | 13,494,757 | ||||||||||||||||||||||||
TOTAL INVESTMENTS IN REAL ESTATE | 2,704,080,861 | 123,369,219 | — | 2,827,450,080 | 2,541,683,753 | 133,886,288 | — | 2,675,570,041 | ||||||||||||||||||||||||
Accumulated Depreciation | (203,953,334 | ) | (31,568,160 | ) | — | (235,521,494 | ) | (150,885,609 | ) | (34,023,363 | ) | — | (184,908,972 | ) | ||||||||||||||||||
Net Real Estate | 2,500,127,527 | 91,801,059 | — | 2,591,928,586 | 2,390,798,144 | 99,862,925 | — | 2,490,661,069 | ||||||||||||||||||||||||
Other Assets: | ||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | 17,596,309 | 3,058,461 | 11,358,156 | 32,012,926 | 24,799,962 | 5,609,103 | 15,243,658 | 45,652,723 | ||||||||||||||||||||||||
Rents and Other Receivables | 31,137,815 | 11,574,021 | 2,213,697 | 44,925,533 | 27,290,269 | 11,328,239 | 4,691,310 | 43,309,818 | ||||||||||||||||||||||||
Other Assets Held for Sale(1) | 7,637,401 | — | — | 7,637,401 | 6,835,290 | — | — | 6,835,290 | ||||||||||||||||||||||||
Intangible Assets(2) | 153,765,515 | — | 11,980,312 | 165,745,827 | 159,804,366 | — | 12,045,312 | 171,849,678 | ||||||||||||||||||||||||
Deferred Costs, Prepaid Taxes & Exp. & Other Assets | 44,587,785 | 14,691,550 | 23,853,727 | 83,133,062 | 42,868,575 | 7,550,568 | 19,782,031 | 70,201,174 | ||||||||||||||||||||||||
TOTAL OTHER ASSETS | 254,724,825 | 29,324,032 | 49,405,892 | 333,454,749 | 261,598,462 | 24,487,910 | 51,762,311 | 337,848,683 | ||||||||||||||||||||||||
TOTAL ASSETS | 2,754,852,352 | 121,125,091 | 49,405,892 | 2,925,383,335 | 2,652,396,606 | 124,350,835 | 51,762,311 | 2,828,509,752 | ||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Mortgage Notes Payable | 1,301,417,387 | 96,807,369 | — | 1,398,224,756 | 1,162,479,171 | 107,513,205 | — | 1,269,992,376 | ||||||||||||||||||||||||
Mortgage Debt Premium(3) | 44,311,462 | — | — | 44,311,462 | 56,134,624 | — | — | 56,134,624 | ||||||||||||||||||||||||
Bank Loans Payable | — | — | 276,000,000 | 276,000,000 | — | — | 271,000,000 | 271,000,000 | ||||||||||||||||||||||||
Liabilities Related to Assets Held for Sale | 1,496,721 | — | — | 1,496,721 | 1,164,210 | — | — | 1,164,210 | ||||||||||||||||||||||||
Other Liabilities(4) | 60,755,791 | 2,664,801 | 23,843,874 | 87,264,466 | 50,284,826 | 3,351,797 | 40,147,000 | 93,783,623 | ||||||||||||||||||||||||
TOTAL LIABILITIES | 1,407,981,361 | 99,472,170 | 299,843,874 | 1,807,297,405 | 1,270,062,831 | 110,865,002 | 311,147,000 | 1,692,074,833 | ||||||||||||||||||||||||
Minority Interest | 3,159,232 | — | 127,931,938 | 131,091,170 | 3,584,992 | — | 128,383,925 | 131,968,917 | ||||||||||||||||||||||||
Shareholders’ Equity: | ||||||||||||||||||||||||||||||||
Shares of Beneficial Interest at $1 Par | — | — | 36,714,462 | 36,714,462 | — | — | 36,272,160 | 36,272,160 | ||||||||||||||||||||||||
Preferred Shares at $0.01 Par | — | — | 24,750 | 24,750 | — | — | 24,750 | 24,750 | ||||||||||||||||||||||||
Capital Contributed in Excess of Par | — | — | 916,936,586 | 916,936,586 | — | — | 899,506,128 | 899,506,128 | ||||||||||||||||||||||||
Restricted Stock | — | — | (14,283,902 | ) | (14,283,902 | ) | — | — | (7,736,812 | ) | (7,736,812 | ) | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | — | — | 2,770,127 | 2,770,127 | — | — | (1,821,457 | ) | (1,821,457 | ) | ||||||||||||||||||||||
Retained Earnings | — | — | 44,832,737 | 44,832,737 | — | — | 78,221,233 | 78,221,233 | ||||||||||||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | — | — | 986,994,760 | 986,994,760 | — | — | 1,004,466,002 | 1,004,466,002 | ||||||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,411,140,593 | $ | 99,472,170 | $ | 1,414,770,572 | $ | 2,925,383,335 | $ | 1,273,647,823 | $ | 110,865,002 | $ | 1,443,996,927 | $ | 2,828,509,752 | ||||||||||||||||
September 30, 2004 | ||||||||||||||||
PREIT Wholly Owned | PREIT's % of Partnerships (5) | Corporate | Combined TOTAL | |||||||||||||
ASSETS | ||||||||||||||||
Investments in Real Estate, at cost | ||||||||||||||||
Retail Properties(1) | $ | 2,382,406,902 | $ | 131,428,634 | — | $ | 2,513,835,536 | |||||||||
Office/Industrial Properties | 2,504,211 | — | — | 2,504,211 | ||||||||||||
Land Held for Development | 9,542,722 | — | — | 9,542,722 | ||||||||||||
Construction In Progress | 21,905,523 | 1,693,762 | — | 23,599,285 | ||||||||||||
TOTAL INVESTMENTS IN REAL ESTATE | 2,416,359,358 | 133,122,396 | — | 2,549,481,754 | ||||||||||||
Accumulated Depreciation | (132,819,645 | ) | (31,124,661 | ) | — | (163,944,306 | ) | |||||||||
Net Real Estate | 2,283,539,713 | 101,997,735 | — | 2,385,537,448 | ||||||||||||
Other Assets: | ||||||||||||||||
Cash and Cash Equivalents | 13,607,397 | 5,423,522 | 16,793,185 | 35,824,104 | ||||||||||||
Rents and Other Receivables | 24,535,010 | 6,894,906 | 1,093,147 | 32,523,063 | ||||||||||||
Other Assets Held for Sale(1) | 6,441,947 | — | — | 6,441,947 | ||||||||||||
Intangible Assets(2) | 151,473,409 | — | 11,801,252 | 163,274,661 | ||||||||||||
Deferred Costs, Prepaid Taxes & Exp. & Other Assets | 41,626,021 | 11,015,165 | 16,972,315 | 69,613,501 | ||||||||||||
TOTAL OTHER ASSETS | 237,683,784 | 23,333,593 | 46,659,899 | 307,677,276 | ||||||||||||
TOTAL ASSETS | 2,521,223,497 | 125,331,328 | 46,659,899 | 2,693,214,724 | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Liabilities: | ||||||||||||||||
Mortgage Notes Payable | 1,197,089,339 | 108,055,084 | — | 1,305,144,423 | ||||||||||||
Mortgage Debt Premium(3) | 60,945,819 | — | 60,945,819 | |||||||||||||
Bank Loans Payable | — | — | 112,000,000 | 112,000,000 | ||||||||||||
Liabilities Related to Assets Held for Sale | 707,595 | — | 707,595 | |||||||||||||
Other Liabilities(4) | 49,680,235 | 2,772,090 | 28,578,718 | 81,031,043 | ||||||||||||
TOTAL LIABILITIES | 1,308,422,988 | 110,827,174 | 140,578,718 | 1,559,828,880 | ||||||||||||
Minority Interest | 3,702,340 | — | 129,072,186 | 132,774,526 | ||||||||||||
Shareholders’ Equity: | ||||||||||||||||
Shares of Beneficial Interest at $1 Par | — | — | 36,094,566 | 36,094,566 | ||||||||||||
Preferred Shares at $0.01 Par | 24,750 | 24,750 | ||||||||||||||
Capital Contributed in Excess of Par | — | — | 892,853,369 | 892,853,369 | ||||||||||||
Restricted Stock | — | — | (8,593,279 | ) | (8,593,279 | ) | ||||||||||
Accumulated Other Comprehensive Income (Loss) | — | — | (1,830,568 | ) | (1,830,568 | ) | ||||||||||
Retained Earnings | — | — | 82,062,480 | 82,062,480 | ||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | — | — | 1,000,611,318 | 1,000,611,318 | ||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,312,125,328 | $ | 110,827,174 | $ | 1,270,262,222 | $ | 2,693,214,724 | ||||||||
(1) | Investment in real estate as of September 30, 2005, December 31, 2004 and September 30, 2004 includes $9,610,772, $10,612,277 and $10,606,382, respectively, relating to the non-core properties. The non-core properties are classified as held-for-sale for GAAP purposes. Other assets held for sale represent intangible assets and current assets of the non-core properties. |
(2) | Includes value of acquired in-place leases and above-market value of leases recorded in connection with the acquisition of properties since 2002. Purchase accounting rules require a purchaser to separately value the leases that are in place at the acquisition date, as well as the above- or below-market values of the leases. |
(3) | Represents premium that is recorded in connection with debt assumed when a property is purchased. The debt is marked to market at the acquisition date and the premium is amortized through interest expense over the remaining term of the debt. |
(4) | For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses and Other Liabilities including Deficit in Partnerships Investments. |
(5) | Includes PREIT’s percent of partnership investment that is “grossed up” to reflect the Company's share of the Total Assets and Liabilities of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company's equity in these properties. |
NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 30 to 32.
PAGE 5
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
BALANCE SHEET(1)
(Property Type)
September 30, 2005 | December 31, 2004 | |||||||||||||||||||||||||||||||||||||||
Malls | Power and Strip Centers | Total Retail | Corporate/ Other Properties | Combined TOTAL | Malls | Power and Strip Centers | Total Retail | Corporate/ Other Properties | Combined TOTAL | |||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||
Investments in Real Estate, at cost(2) | $ | 2,482,123,164 | $ | 305,805,000 | $ | 2,787,928,164 | $ | 39,521,916 | $ | 2,827,450,080 | $ | 2,344,341,323 | $ | 317,355,625 | $ | 2,661,696,948 | $ | 13,873,093 | $ | 2,675,570,041 | ||||||||||||||||||||
Accumulated Depreciation | (182,677,186 | ) | (52,844,308 | ) | (235,521,494 | ) | — | (235,521,494 | ) | (135,017,071 | ) | (47,764,970 | ) | (182,782,041 | ) | (2,126,931 | ) | (184,908,972 | ) | |||||||||||||||||||||
Net Real Estate | 2,299,445,978 | 252,960,692 | 2,552,406,670 | 39,521,916 | 2,591,928,586 | 2,209,324,252 | 269,590,655 | 2,478,914,907 | 11,746,162 | 2,490,661,069 | ||||||||||||||||||||||||||||||
Other Assets: | ||||||||||||||||||||||||||||||||||||||||
Cash | 17,525,018 | 3,041,141 | 20,566,159 | 11,446,767 | 32,012,926 | 25,818,936 | 4,590,129 | 30,409,065 | 15,243,658 | 45,652,723 | ||||||||||||||||||||||||||||||
— | ||||||||||||||||||||||||||||||||||||||||
Other Assets Held for Sale | 7,606,742 | — | 7,606,742 | 30,659 | 7,637,401 | 6,837,914 | — | 6,837,914 | (2,624 | ) | 6,835,290 | |||||||||||||||||||||||||||||
Intangible Assets(3) | 153,765,515 | — | 153,765,515 | 11,980,312 | 165,745,827 | 159,804,366 | — | 159,804,366 | 12,045,312 | 171,849,678 | ||||||||||||||||||||||||||||||
Other Assets, Net(4) | 61,466,144 | 25,363,514 | 86,829,658 | 41,228,937 | 128,058,595 | 52,672,487 | 23,813,146 | 76,485,633 | 37,025,359 | 113,510,992 | ||||||||||||||||||||||||||||||
Total Other Assets | 240,363,419 | 28,404,655 | 268,768,074 | 64,686,675 | 333,454,749 | 245,133,703 | 28,403,275 | 273,536,978 | 64,311,705 | 337,848,683 | ||||||||||||||||||||||||||||||
TOTAL ASSETS | 2,539,809,397 | 281,365,347 | 2,821,174,744 | 104,208,591 | 2,925,383,335 | 2,454,457,955 | 297,993,930 | 2,752,451,885 | 76,057,867 | 2,828,509,752 | ||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Mortgage Notes Payable | 1,307,806,751 | 90,418,005 | 1,398,224,756 | — | 1,398,224,756 | 1,165,736,877 | 104,255,499 | 1,269,992,376 | — | 1,269,992,376 | ||||||||||||||||||||||||||||||
Mortgage Debt Premium(5) | 43,248,150 | 1,063,312 | 44,311,462 | — | 44,311,462 | 54,794,532 | 1,340,092 | 56,134,624 | — | 56,134,624 | ||||||||||||||||||||||||||||||
Bank Loans Payable | — | — | — | 276,000,000 | 276,000,000 | — | 271,000,000 | 271,000,000 | ||||||||||||||||||||||||||||||||
Liabilities Related to Assets Held for Sale | 1,059,789 | — | 1,059,789 | 436,932 | 1,496,721 | 1,156,442 | — | 1,156,442 | 7,768 | 1,164,210 | ||||||||||||||||||||||||||||||
Other Liabilities(6) | 50,299,428 | 3,656,867 | 53,956,295 | 33,308,171 | 87,264,466 | 44,391,004 | 5,723,480 | 50,114,484 | 43,669,139 | 93,783,623 | ||||||||||||||||||||||||||||||
TOTAL LIABILITIES | 1,402,414,118 | 95,138,184 | 1,497,552,302 | 309,745,103 | 1,807,297,405 | 1,266,078,855 | 111,319,071 | 1,377,397,926 | 314,676,907 | 1,692,074,833 | ||||||||||||||||||||||||||||||
Minority Interest | 3,159,232 | 3,159,232 | 127,931,938 | 131,091,170 | 3,584,992 | 3,584,992 | 128,383,925 | 131,968,917 | ||||||||||||||||||||||||||||||||
Shareholders’ Equity: | ||||||||||||||||||||||||||||||||||||||||
Shares of Beneficial Interest at $1 Par | — | — | — | 36,714,462 | 36,714,462 | — | — | — | 36,272,160 | 36,272,160 | ||||||||||||||||||||||||||||||
Preferred Shares at $0.01 Par | — | — | — | 24,750 | 24,750 | — | — | — | 24,750 | 24,750 | ||||||||||||||||||||||||||||||
Capital Contributed in Excess of Par | — | — | — | 916,936,586 | 916,936,586 | — | — | — | 899,506,128 | 899,506,128 | ||||||||||||||||||||||||||||||
Restricted Stock | — | — | — | (14,283,902 | ) | (14,283,902 | ) | — | — | — | (7,736,812 | ) | (7,736,812 | ) | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | — | — | — | 2,770,127 | 2,770,127 | — | — | — | (1,821,457 | ) | (1,821,457 | ) | ||||||||||||||||||||||||||||
Retained Earnings | — | — | — | 44,832,737 | 44,832,737 | — | — | — | 78,221,233 | 78,221,233 | ||||||||||||||||||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | — | — | — | 986,994,760 | 986,994,760 | — | — | — | 1,004,466,002 | 1,004,466,002 | ||||||||||||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,405,573,350 | $ | 95,138,184 | $ | 1,500,711,534 | $ | 1,424,671,801 | $ | 2,925,383,335 | $ | 1,269,663,847 | $ | 111,319,071 | $ | 1,380,982,918 | $ | 1,447,526,834 | $ | 2,828,509,752 | ||||||||||||||||||||
September 30, 2004 | ||||||||||||||||||||
Malls | Power and Strip Centers | Total Retail | Corporate/ Other Properties | Combined TOTAL | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Investments in Real Estate, at cost(2) | $ | 2,220,092,702 | $ | 315,835,941 | $ | 2,535,928,643 | $ | 13,553,111 | $ | 2,549,481,754 | ||||||||||
Accumulated Depreciation | (118,323,088 | ) | (43,506,827 | ) | (161,829,915 | ) | (2,114,391 | ) | (163,944,306 | ) | ||||||||||
Net Real Estate | 2,101,769,614 | 272,329,114 | 2,374,098,728 | 11,438,720 | 2,385,537,448 | |||||||||||||||
Other Assets: | ||||||||||||||||||||
Cash | 15,834,332 | 3,196,587 | 19,030,919 | 16,793,185 | 35,824,104 | |||||||||||||||
— | ||||||||||||||||||||
Other Assets Held for Sale | 6,441,947 | 6,441,947 | — | 6,441,947 | ||||||||||||||||
Intangible Assets(3) | 151,473,409 | 151,473,409 | 11,801,252 | 163,274,661 | ||||||||||||||||
Other Assets, Net(4) | 47,464,010 | 24,494,001 | 71,958,011 | 30,178,553 | 102,136,564 | |||||||||||||||
Total Other Assets | 221,213,698 | 27,690,588 | 248,904,286 | 58,772,990 | 307,677,276 | |||||||||||||||
TOTAL ASSETS | 2,322,983,312 | 300,019,702 | 2,623,003,014 | 70,211,710 | 2,693,214,724 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Mortgage Notes Payable | 1,200,459,167 | 104,685,256 | 1,305,144,423 | — | 1,305,144,423 | |||||||||||||||
Mortgage Debt Premium(5) | 59,512,588 | 1,433,231 | 60,945,819 | — | 60,945,819 | |||||||||||||||
Bank Loans Payable | — | 112,000,000 | 112,000,000 | |||||||||||||||||
Liabilities Related to Assets Held for Sale | 707,595 | — | 707,595 | — | 707,595 | |||||||||||||||
Other Liabilities(6) | 44,109,107 | 4,680,136 | 48,789,243 | 32,241,800 | 81,031,043 | |||||||||||||||
TOTAL LIABILITIES | 1,304,788,457 | 110,798,623 | 1,415,587,080 | 144,241,800 | 1,559,828,880 | |||||||||||||||
Minority Interest | 3,702,340 | 3,702,340 | 129,072,186 | 132,774,526 | ||||||||||||||||
Shareholders’ Equity: | ||||||||||||||||||||
Shares of Beneficial Interest at $1 Par | — | — | — | 36,094,566 | 36,094,566 | |||||||||||||||
Preferred Shares at $0.01 Par | — | — | — | 24,750 | 24,750 | |||||||||||||||
Capital Contributed in Excess of Par | — | — | — | 892,853,369 | 892,853,369 | |||||||||||||||
Restricted Stock | — | — | — | (8,593,279 | ) | (8,593,279 | ) | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | — | — | — | (1,830,568 | ) | (1,830,568 | ) | |||||||||||||
Retained Earnings | — | — | — | 82,062,480 | 82,062,480 | |||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | — | — | — | 1,000,611,318 | 1,000,611,318 | |||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,308,490,797 | $ | 110,798,623 | $ | 1,419,289,420 | $ | 1,273,925,304 | $ | 2,693,214,724 | ||||||||||
(1) | Includes PREIT’s percent of partnership investments that is “grossed up” to reflect the Company’s share of the Total Assets and Liabilities of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company's Equity in these properties. |
(2) | Investment in real estate as of September 30, 2005, December 31, 2004 and September 30, 2004 includes $9,610,772, $10,612,277 and $10,606,382, respectively, relating to the non-core properties. The non-core properties are classified as held-for-sale for GAAP purposes. Other assets held for sale represent intangible assets and current assets of the non-core properties. |
(3) | Includes value of acquired in-place leases and above-market value of leases recorded in connection with the acquisition of properties since 2002. Purchase accounting rules require a purchaser to separately value the leases that are in place at the acquisition date, as well as the above- or below-market values of the leases. |
(4) | Deferred Costs, Prepaid Taxes and Expenses and Other Assets include Rents and Other Receivables for Partnerships. |
(5) | Represents premium that is recorded in connection with debt assumed in connection with property purchases. The debt is marked to market at the acquisition date and the premium is amortized through interest expense over the remaining term of the debt. |
(6) | For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses and Other Liabilities including Deficit Partnership Investments. |
NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 30 to 32.
PAGE 6
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
INCOME STATEMENT(1)
QUARTERLY COMPARISON
(Wholly Owned vs. Partnerships)
Q3 05 (3 months ended 9/30/05) | TOTAL % CHANGE | Q3 04 (3 months ended 9/30/04) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Wholly Owned | Partnerships | Corporate | Combined TOTAL | Wholly Owned | Partnerships | Corporate | Combined TOTAL | ||||||||||||||||||||||||||||||||||||||||||||||
Base Rents | $ | 67,095,836 | $ | 4,854,281 | $ | — | 71,950,117 | 1.9 | % | $ | 65,449,814 | $ | 5,171,295 | $ | — | $ | 70,621,109 | ||||||||||||||||||||||||||||||||||||
Straight-Lining of Base Rents | 1,198,472 | (23,510 | ) | — | 1,174,962 | -7.5 | % | 1,269,053 | 853 | — | 1,269,906 | ||||||||||||||||||||||||||||||||||||||||||
Percentage Rents | 1,418,939 | 34,871 | — | 1,453,810 | -22.4 | % | 1,820,100 | 53,063 | — | 1,873,163 | |||||||||||||||||||||||||||||||||||||||||||
Expense Reimbursements | 32,421,449 | 1,421,033 | — | 33,842,482 | 1.3 | % | 32,088,954 | 1,335,661 | — | 33,424,615 | |||||||||||||||||||||||||||||||||||||||||||
Lease Termination Revenue | 175,734 | 376,109 | — | 551,843 | -67.4 | % | 1,690,536 | — | — | 1,690,536 | |||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Revenues | 2,353,203 | 163,025 | — | 2,516,228 | 10.7 | % | 2,254,180 | 18,637 | — | 2,272,817 | |||||||||||||||||||||||||||||||||||||||||||
TOTAL REAL ESTATE REVENUES | 104,663,633 | 94 | % | 6,825,809 | 6 | % | — | 0 | % | 111,489,442 | 0.3 | % | 104,572,637 | 94 | % | 6,579,509 | 6 | % | — | 0 | % | 111,152,146 | |||||||||||||||||||||||||||||||
Operating and Maintenance | (31,151,910 | ) | (1,342,296 | ) | — | (32,494,206 | ) | 0.6 | % | (30,934,256 | ) | (1,360,094 | ) | — | (32,294,350 | ) | |||||||||||||||||||||||||||||||||||||
Real Estate Taxes | (10,272,200 | ) | (614,437 | ) | — | (10,886,637 | ) | 8.9 | % | (9,283,616 | ) | (710,170 | ) | — | (9,993,786 | ) | |||||||||||||||||||||||||||||||||||||
— | |||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL PROPERTY OPERATING EXPENSES | (41,424,110 | ) | 95 | % | (1,956,733 | ) | 5 | % | — | 0 | % | (43,380,843 | ) | 2.6 | % | (40,217,872 | ) | 95 | % | (2,070,264 | ) | 5 | % | — | 0 | % | (42,288,136 | ) | |||||||||||||||||||||||||
NET OPERATING INCOME | 63,239,523 | 93 | % | 4,869,076 | 7 | % | — | 0 | % | 68,108,599 | -1.1 | % | 64,354,765 | 93 | % | 4,509,245 | 7 | % | — | 0 | % | 68,864,010 | |||||||||||||||||||||||||||||||
Management Company Revenue | — | — | 1,136,109 | 1,136,109 | -38.0 | % | — | — | 1,831,296 | 1,831,296 | |||||||||||||||||||||||||||||||||||||||||||
Interest and Other Income | — | — | 293,002 | 293,002 | 63.2 | % | — | — | 179,562 | 179,562 | |||||||||||||||||||||||||||||||||||||||||||
General & Administrative: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Payroll and Benefits | — | — | (6,822,681 | ) | (6,822,681 | ) | -7.0 | % | — | — | (7,335,945 | ) | (7,335,945 | ) | |||||||||||||||||||||||||||||||||||||||
Other G&A Expenses and taxes | — | — | (1,667,228 | ) | (1,667,228 | ) | -57.9 | % | — | — | (3,958,168 | ) | (3,958,168 | ) | |||||||||||||||||||||||||||||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) | 63,239,523 | 104 | % | 4,869,076 | 8 | % | (7,060,798 | ) | -12 | % | 61,047,801 | 2.5 | % | 64,354,765 | 108 | % | 4,509,245 | 8 | % | (9,283,255 | ) | -16 | % | 59,580,755 | |||||||||||||||||||||||||||||
Interest Expense (2) | (17,587,352 | ) | (1,958,384 | ) | (4,271,228 | ) | (23,816,964 | ) | 12.7 | % | (17,062,052 | ) | (2,010,883 | ) | (2,066,196 | ) | (21,139,131 | ) | |||||||||||||||||||||||||||||||||||
Depreciation & Amortization | (27,306,831 | ) | (1,102,720 | ) | (421,848 | ) | (28,831,399 | ) | 20.5 | % | (22,683,695 | ) | (1,002,577 | ) | (241,000 | ) | (23,927,272 | ) | |||||||||||||||||||||||||||||||||||
OTHER EXPENSES | (44,894,183 | ) | (3,061,104 | ) | (4,693,076 | ) | (52,648,363 | ) | 16.8 | % | (39,745,747 | ) | (3,013,460 | ) | (2,307,196 | ) | (45,066,403 | ) | |||||||||||||||||||||||||||||||||||
Gains on Sales of Interests in Real Estate | 6,736,414 | 5,024,081 | — | 11,760,495 | 669.1 | % | — | 1,529,183 | — | 1,529,183 | |||||||||||||||||||||||||||||||||||||||||||
Income before Minority Interest | 25,081,754 | 6,832,053 | (11,753,874 | ) | 20,159,933 | 25.7 | % | 24,609,018 | 3,024,968 | (11,590,451 | ) | 16,043,535 | |||||||||||||||||||||||||||||||||||||||||
Minority Interest in Properties | (41,109 | ) | — | — | (41,109 | ) | -22.8 | % | (53,268 | ) | — | — | (53,268 | ) | |||||||||||||||||||||||||||||||||||||||
Minority Interest of O.P. Unitholders | — | — | (1,781,811 | ) | (1,781,811 | ) | 17.4 | % | — | — | (1,517,300 | ) | (1,517,300 | ) | |||||||||||||||||||||||||||||||||||||||
Income from Operations | 25,040,645 | 6,832,053 | (13,535,685 | ) | 18,337,013 | 26.7 | % | 24,555,750 | 3,024,968 | (13,107,751 | ) | 14,472,967 | |||||||||||||||||||||||||||||||||||||||||
Discontinued Operations: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Minority Interest of O.P. Unitholders | — | — | (441,242 | ) | (441,242 | ) | 115.1 | % | — | — | (205,095 | ) | (205,095 | ) | |||||||||||||||||||||||||||||||||||||||
TOTAL DISCONTINUED OPERATIONS | — | — | (441,242 | ) | (441,242 | ) | N/A | — | — | (205,095 | ) | (205,095 | ) | ||||||||||||||||||||||||||||||||||||||||
NET INCOME | $ | 25,040,645 | 140 | % | $ | 6,832,053 | 38 | % | $ | (13,976,927 | ) | -78 | % | $ | 17,895,771 | 25.4 | % | $ | 24,555,750 | 172 | % | $ | 3,024,968 | 21 | % | $ | (13,312,846 | ) | -93 | % | $ | 14,267,872 | |||||||||||||||||||||
(1) | Includes PREIT’s percent of partnership investments that is “grossed up” to reflect the Company’s share of the Total Revenues and Expenses of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments. |
(2) | Capitalized interest expense of $795,000 is not included in the quarter ended 9/30/05 and $419,000 is not included in the quarter ended 9/30/04. |
NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 30 to 32.
PAGE 7
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
INCOME STATEMENT(1)
QUARTERLY COMPARISON
(Line of Business)
Q3 05 (3 months ended 9/30/05) | TOTAL % | Q3 04 (3 months ended 9/30/04) | |||||||||||||||||||||||||||||||||||||
RETAIL | CORPORATE/ OTHER PROPERTIES | Combined TOTAL | RETAIL | CORPORATE/ OTHER PROPERTIES | Combined TOTAL | ||||||||||||||||||||||||||||||||||
Base Rents | $ | 71,869,418 | $ | 80,699 | $ | 71,950,117 | 1.9 | % | $ | 70,535,953 | $ | 85,156 | $ | 70,621,109 | |||||||||||||||||||||||||
Straight-Lining of Base Rents | 1,174,962 | — | 1,174,962 | -7.5 | % | 1,269,906 | — | 1,269,906 | |||||||||||||||||||||||||||||||
Percentage Rents | 1,453,810 | — | 1,453,810 | -22.4 | % | 1,873,163 | — | 1,873,163 | |||||||||||||||||||||||||||||||
Expense Reimbursements | 33,839,536 | 2,946 | 33,842,482 | 1.3 | % | 33,411,645 | 12,970 | 33,424,615 | |||||||||||||||||||||||||||||||
Lease Termination Revenue | 551,843 | — | 551,843 | -67.4 | % | 1,690,536 | — | 1,690,536 | |||||||||||||||||||||||||||||||
Other Real Estate Revenues | 2,516,228 | — | 2,516,228 | 10.7 | % | 2,272,817 | — | 2,272,817 | |||||||||||||||||||||||||||||||
TOTAL REAL ESTATE REVENUES | 111,405,797 | 100 | % | 83,645 | — | 111,489,442 | 0.3 | % | 111,054,020 | 100 | % | 98,126 | 0 | 111,152,146 | |||||||||||||||||||||||||
Operating and Maintenance | (32,488,716 | ) | (5,490 | ) | (32,494,206 | ) | 0.6 | % | (32,290,920 | ) | (3,430 | ) | (32,294,350 | ) | |||||||||||||||||||||||||
Real Estate Taxes | (10,882,052 | ) | (4,585 | ) | (10,886,637 | ) | 8.9 | % | (9,983,666 | ) | (10,120 | ) | (9,993,786 | ) | |||||||||||||||||||||||||
TOTAL PROPERTY OPERATING EXPENSES | (43,370,768 | ) | 100 | % | (10,075 | ) | — | (43,380,843 | ) | 2.6 | % | (42,274,586 | ) | 100 | % | (13,550 | ) | 0 | (42,288,136 | ) | |||||||||||||||||||
NET OPERATING INCOME | 68,035,029 | 100 | % | 73,570 | — | 68,108,599 | -1.1 | % | 68,779,434 | 100 | % | 84,576 | 0 | 68,864,010 | |||||||||||||||||||||||||
Management Company Revenue | — | 1,136,109 | 1,136,109 | -38.0 | % | — | 1,831,296 | 1,831,296 | |||||||||||||||||||||||||||||||
Interest and Other Income | — | 293,002 | 293,002 | 63.2 | % | — | 179,562 | 179,562 | |||||||||||||||||||||||||||||||
General and Administrative: | — | — | |||||||||||||||||||||||||||||||||||||
Corporate Payroll and Benefits | — | (6,822,681 | ) | (6,822,681 | ) | -7.0 | % | — | (7,335,945 | ) | (7,335,945 | ) | |||||||||||||||||||||||||||
Other General & Administrative and taxes | — | (1,667,228 | ) | (1,667,228 | ) | -57.9 | % | — | (3,958,168 | ) | (3,958,168 | ) | |||||||||||||||||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) | 68,035,029 | 111 | % | (6,987,228 | ) | -11 | % | 61,047,801 | 2.5 | % | 68,779,434 | 115 | % | (9,198,679 | ) | -15 | % | 59,580,755 | |||||||||||||||||||||
Interest Expense(2) | (19,545,736 | ) | (4,271,228 | ) | (23,816,964 | ) | 12.7 | % | (19,072,935 | ) | (2,066,196 | ) | (21,139,131 | ) | |||||||||||||||||||||||||
Depreciation & Amortization | (28,409,551 | ) | (421,848 | ) | (28,831,399 | ) | 20.5 | % | (23,673,732 | ) | (253,540 | ) | (23,927,272 | ) | |||||||||||||||||||||||||
OTHER EXPENSES | (47,955,287 | ) | (4,693,076 | ) | (52,648,363 | ) | 16.8 | % | (42,746,667 | ) | (2,319,736 | ) | (45,066,403 | ) | |||||||||||||||||||||||||
Gains on Sales of Interests in Real Estate | 5,024,081 | 6,736,414 | 11,760,495 | 669.1 | % | 1,529,183 | — | 1,529,183 | |||||||||||||||||||||||||||||||
Income before Minority Interest | 25,103,823 | (4,943,890 | ) | 20,159,933 | 25.7 | % | 27,561,950 | (11,518,415 | ) | 16,043,535 | |||||||||||||||||||||||||||||
Minority Interest in Properties | (41,109 | ) | — | (41,109 | ) | -22.8 | % | (53,268 | ) | — | (53,268 | ) | |||||||||||||||||||||||||||
Minority Interest of O.P. Unitholders | — | (1,781,811 | ) | (1,781,811 | ) | 17.4 | % | — | (1,517,300 | ) | (1,517,300 | ) | |||||||||||||||||||||||||||
Income from Operations | 25,062,714 | (6,725,701 | ) | 18,337,013 | 26.7 | % | 27,508,682 | (13,035,715 | ) | 14,472,967 | |||||||||||||||||||||||||||||
Discontinued Operations: | |||||||||||||||||||||||||||||||||||||||
Minority Interest of O.P. Unitholders | — | (441,242 | ) | (441,242 | ) | 115.1 | % | — | (205,095 | ) | (205,095 | ) | |||||||||||||||||||||||||||
TOTAL DISCONTINUED OPERATIONS | — | (441,242 | ) | (441,242 | ) | N/A | — | (205,095 | ) | (205,095 | ) | ||||||||||||||||||||||||||||
NET INCOME | $ | 25,062,714 | 140 | % | $ | (7,166,943 | ) | -40 | % | $ | 17,895,771 | 25.4 | % | $ | 27,508,682 | 193 | % | $ | (13,240,810 | ) | -93 | % | $ | 14,267,872 | |||||||||||||||
(1) | Includes PREIT’s percent of partnership investments that is “grossed up” to reflect the Company's share of the Total Revenues and Expenses of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments. |
(2) | Capitalized interest expense of $795,000 is not included in the quarter ended 9/30/05 and $419,000 is not included in the quarter ended 9/30/04. |
NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 30 to 32.
PAGE 8
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
RETAIL INCOME STATEMENT(1)
QUARTERLY COMPARISON
Q3 05 (3 months ended 9/30/05) | % Change TOTAL | % Change Wholly Owned | % Change Partnerships | Q3 04 (3 months ended 9/30/04) | |||||||||||||||||||||||||||||||||||||||||
Combined TOTAL | Wholly Owned | Partnerships | Combined TOTAL | Wholly Owned | Partnerships | ||||||||||||||||||||||||||||||||||||||||
Base Rents | $ | 71,869,418 | $ | 67,015,137 | $ | 4,854,281 | 1.9 | % | 2.5 | % | -6.1 | % | $ | 70,535,953 | $ | 65,364,658 | $ | 5,171,295 | |||||||||||||||||||||||||||
Straight-Lining of Base Rents | 1,174,962 | 1,198,472 | (23,510 | ) | -7.5 | % | -5.6 | % | -2856.2 | % | 1,269,906 | 1,269,053 | 853 | ||||||||||||||||||||||||||||||||
Percentage Rents | 1,453,810 | 1,418,939 | 34,871 | -22.4 | % | -22.0 | % | -34.3 | % | 1,873,163 | 1,820,100 | 53,063 | |||||||||||||||||||||||||||||||||
Expense Reimbursements | 33,839,536 | 32,418,503 | 1,421,033 | 1.3 | % | 1.1 | % | 6.4 | % | 33,411,645 | 32,075,984 | 1,335,661 | |||||||||||||||||||||||||||||||||
Lease Termination Revenue | 551,843 | 175,734 | 376,109 | -67.4 | % | -89.6 | % | N/A | 1,690,536 | 1,690,536 | — | ||||||||||||||||||||||||||||||||||
Other Real Estate Revenues | 2,516,228 | 2,353,203 | 163,025 | 10.7 | % | 4.4 | % | 774.7 | % | 2,272,817 | 2,254,180 | 18,637 | |||||||||||||||||||||||||||||||||
TOTAL REAL ESTATE REVENUES | 111,405,797 | 104,579,988 | 94 | % | 6,825,809 | 6 | % | 0.3 | % | 0.1 | % | 3.7 | % | 111,054,020 | 104,474,511 | 94 | % | 6,579,509 | 6 | % | |||||||||||||||||||||||||
Operating and Maintenance | (32,488,716 | ) | (31,146,420 | ) | (1,342,296 | ) | 0.6 | % | 0.7 | % | -1.3 | % | (32,290,920 | ) | (30,930,826 | ) | (1,360,094 | ) | |||||||||||||||||||||||||||
Real Estate Taxes | (10,882,052 | ) | (10,267,615 | ) | (614,437 | ) | 9.0 | % | 10.7 | % | -13.5 | % | (9,983,666 | ) | (9,273,496 | ) | (710,170 | ) | |||||||||||||||||||||||||||
TOTAL PROPERTY OPERATING EXPENSES | (43,370,768 | ) | (41,414,035 | ) | 95 | % | (1,956,733 | ) | 5 | % | 2.6 | % | 3.0 | % | -5.5 | % | (42,274,586 | ) | (40,204,322 | ) | 95 | % | (2,070,264 | ) | 5 | % | |||||||||||||||||||
NET OPERATING INCOME | 68,035,029 | 63,165,953 | 93 | % | 4,869,076 | 7 | % | -1.1 | % | -1.7 | % | 8.0 | % | 68,779,434 | 64,270,189 | 93 | % | 4,509,245 | 7 | % | |||||||||||||||||||||||||
Interest Expense | (19,545,736 | ) | (17,587,352 | ) | (1,958,384 | ) | 2.5 | % | 3.1 | % | -2.6 | % | (19,072,935 | ) | (17,062,052 | ) | (2,010,883 | ) | |||||||||||||||||||||||||||
Depreciation & Amortization | (28,409,551 | ) | (27,306,831 | ) | (1,102,720 | ) | 20.0 | % | 20.4 | % | 10.0 | % | (23,673,732 | ) | (22,671,155 | ) | (1,002,577 | ) | |||||||||||||||||||||||||||
OTHER EXPENSES | (47,955,287 | ) | (44,894,183 | ) | (3,061,104 | ) | 12.2 | % | 13.0 | % | 1.6 | % | (42,746,667 | ) | (39,733,207 | ) | (3,013,460 | ) | |||||||||||||||||||||||||||
�� | |||||||||||||||||||||||||||||||||||||||||||||
Gains on sales of int. in R.E | 5,024,081 | — | 5,024,081 | 228.5 | % | N/A | 228.5 | % | 1,529,183 | — | 1,529,183 | ||||||||||||||||||||||||||||||||||
Income before Minority Int. | 25,103,823 | 18,271,770 | 6,832,053 | -8.9 | % | -25.5 | % | 125.9 | % | 27,561,950 | 24,536,982 | 3,024,968 | |||||||||||||||||||||||||||||||||
Minority Interest in Properties | (41,109 | ) | (41,109 | ) | -22.8 | % | -22.8 | % | N/A | (53,268 | ) | (53,268 | ) | — | |||||||||||||||||||||||||||||||
NET INCOME | $ | 25,062,714 | $ | 18,230,661 | 73 | % | $ | 6,832,053 | 27 | % | -8.9 | % | -25.5 | % | 125.9 | % | $ | 27,508,682 | $ | 24,483,714 | 89 | % | $ | 3,024,968 | 11 | % | |||||||||||||||||||
SAME STORE COMPARISON
Q3 05 (3 months ended 9/30/05) | Q3 04 (3 months ended 9/30/04) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Combined TOTAL | SAME | NEW | DIVEST | % Change Same Store | Combined TOTAL | SAME | NEW | DIVEST | ||||||||||||||||||||||||||||||||||||||||||||
Base Rents | $ | 71,869,418 | $ | 66,373,448 | $ | 5,408,507 | $ | 87,463 | -0.2 | % | $ | 70,535,953 | $ | 66,504,789 | $ | — | $ | 4,031,164 | ||||||||||||||||||||||||||||||||||
Straight-Lining of Base Rents | 1,174,962 | 983,914 | 192,431 | (1,383 | ) | -20.7 | % | 1,269,906 | 1,240,219 | — | 29,687 | |||||||||||||||||||||||||||||||||||||||||
Percentage Rents | 1,453,810 | 1,438,143 | 60,390 | (44,723 | ) | -15.5 | % | 1,873,163 | 1,702,284 | — | 170,879 | |||||||||||||||||||||||||||||||||||||||||
Expense Reimbursements | 33,839,536 | 31,301,166 | 2,541,504 | (3,134 | ) | -0.8 | % | 33,411,645 | 31,542,251 | — | 1,869,394 | |||||||||||||||||||||||||||||||||||||||||
Lease Termination Revenue | 551,843 | 542,343 | 9,500 | — | -67.9 | % | 1,690,536 | 1,690,536 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Revenues | 2,516,228 | 2,300,123 | 213,936 | 2,169 | 8.8 | % | 2,272,817 | 2,114,545 | — | 158,272 | ||||||||||||||||||||||||||||||||||||||||||
TOTAL REAL ESTATE REVENUES | 111,405,797 | 102,939,137 | 92 | % | 8,426,268 | 8 | % | 40,392 | 0 | % | -1.8 | % | 111,054,020 | 104,794,624 | 94 | % | — | 0 | % | 6,259,396 | 6 | % | ||||||||||||||||||||||||||||||
Operating and Maintenance | (32,488,716 | ) | (29,582,029 | ) | (2,923,598 | ) | 16,911 | 1.3 | % | (32,290,920 | ) | (29,214,671 | ) | — | (3,076,249 | ) | ||||||||||||||||||||||||||||||||||||
Real Estate Taxes | (10,882,052 | ) | (10,086,497 | ) | (750,728 | ) | (44,827 | ) | 8.3 | % | (9,983,666 | ) | (9,316,258 | ) | — | (667,408 | ) | |||||||||||||||||||||||||||||||||||
TOTAL PROPERTY OPERATING EXPENSES | (43,370,768 | ) | (39,668,526 | ) | 91 | % | (3,674,326 | ) | 8 | % | (27,916 | ) | 0 | % | 3.0 | % | (42,274,586 | ) | (38,530,929 | ) | 91 | % | — | 0 | % | (3,743,657 | ) | 9 | % | |||||||||||||||||||||||
NET OPERATING INCOME | 68,035,029 | 63,270,611 | 93 | % | 4,751,942 | 7 | % | 12,476 | 0 | % | -4.5 | % | 68,779,434 | 66,263,695 | 96 | % | — | 0 | % | 2,515,739 | 4 | % | ||||||||||||||||||||||||||||||
Interest Expense | (19,545,736 | ) | (18,788,029 | ) | (673,965 | ) | (83,742 | ) | 2.0 | % | (19,072,935 | ) | (18,413,511 | ) | — | (659,424 | ) | |||||||||||||||||||||||||||||||||||
Depreciation & Amortization | (28,409,551 | ) | (25,920,665 | ) | (2,461,149 | ) | (27,737 | ) | 10.1 | % | (23,673,732 | ) | (23,552,134 | ) | — | (121,598 | ) | |||||||||||||||||||||||||||||||||||
OTHER EXPENSES | (47,955,287 | ) | (44,708,694 | ) | (3,135,114 | ) | (111,479 | ) | 6.5 | % | (42,746,667 | ) | (41,965,645 | ) | — | (781,022 | ) | |||||||||||||||||||||||||||||||||||
Gains on sales of int. in R.E. | 5,024,081 | — | — | 5,024,081 | N/A | 1,529,183 | — | — | 1,529,183 | |||||||||||||||||||||||||||||||||||||||||||
Income before Minority Int. | 25,103,823 | 18,561,917 | 1,616,828 | 4,925,078 | -23.6 | % | 27,561,950 | 24,298,050 | — | 3,263,900 | ||||||||||||||||||||||||||||||||||||||||||
Minority Interest in Properties | (41,109 | ) | (41,288 | ) | — | 179 | -14.4 | % | (53,268 | ) | (48,230 | ) | — | (5,038 | ) | |||||||||||||||||||||||||||||||||||||
NET INCOME | $ | 25,062,714 | $ | 18,520,629 | 74 | % | $ | 1,616,828 | 6 | % | $ | 4,925,257 | 20 | % | -23.6 | % | $ | 27,508,682 | $ | 24,249,820 | 88 | % | $ | — | 0 | % | $ | 3,258,862 | 12 | % | ||||||||||||||||||||||
(1) | Includes PREIT’s percent of partnership investments that is “grossed up” to reflect the Company’s share of the Total Revenues and Expenses of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments. |
NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 30 to 32.
PAGE 9
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
RETAIL INCOME STATEMENT(1)
QUARTERLY COMPARISON
(Property Subtype)
Q3 05 (3 months ended 9/30/05) | % Change TOTAL | % Change Enclosed Mall | % Change Power and Strip Center | Q3 04 (3 months ended 9/30/04) | |||||||||||||||||||||||||||||||||||||||||
Combined TOTAL | Enclosed Mall | Power and Strip Center | Combined TOTAL | Enclosed Mall | Power and Strip Center | ||||||||||||||||||||||||||||||||||||||||
Base Rents | $ | 71,869,418 | $ | 64,213,818 | $ | 7,655,600 | 1.9 | % | 3.0 | % | -6.2 | % | $ | 70,535,953 | $ | 62,371,864 | $ | 8,164,089 | |||||||||||||||||||||||||||
Straight-Lining of Base Rents | 1,174,962 | 978,224 | 196,738 | -7.5 | % | -11.2 | % | 17.1 | % | 1,269,906 | 1,101,917 | 167,989 | |||||||||||||||||||||||||||||||||
Percentage Rents | 1,453,810 | 1,406,319 | 47,491 | -22.4 | % | -23.6 | % | 44.9 | % | 1,873,163 | 1,840,385 | 32,778 | |||||||||||||||||||||||||||||||||
Expense Reimbursements | 33,839,536 | 32,186,276 | 1,653,260 | 1.3 | % | 0.5 | % | 20.1 | % | 33,411,645 | 32,034,613 | 1,377,032 | |||||||||||||||||||||||||||||||||
Lease Termination Revenue | 551,843 | 176,843 | 375,000 | -67.4 | % | -7.2 | % | -75.0 | % | 1,690,536 | 190,536 | 1,500,000 | |||||||||||||||||||||||||||||||||
Other Real Estate Revenues | 2,516,228 | 2,446,880 | 69,348 | 10.7 | % | 8.3 | % | 421.6 | % | 2,272,817 | 2,259,522 | 13,295 | |||||||||||||||||||||||||||||||||
TOTAL REAL ESTATE REVENUES | 111,405,797 | 101,408,360 | 91 | % | 9,997,437 | 9 | % | 0.3 | % | 1.6 | % | -11.2 | % | 111,054,020 | 99,798,837 | 90 | % | 11,255,183 | 10 | % | |||||||||||||||||||||||||
Operating and Maintenance | (32,488,716 | ) | (31,403,121 | ) | (1,085,595 | ) | 0.6 | % | 0.3 | % | 9.1 | % | (32,290,920 | ) | (31,295,781 | ) | (995,139 | ) | |||||||||||||||||||||||||||
Real Estate Taxes | (10,882,052 | ) | (9,884,400 | ) | (997,652 | ) | 9.0 | % | 9.1 | % | 7.8 | % | (9,983,666 | ) | (9,057,824 | ) | (925,842 | ) | |||||||||||||||||||||||||||
TOTAL PROPERTY OPERATING EXPENSES | (43,370,768 | ) | (41,287,521 | ) | 95 | % | (2,083,247 | ) | 5 | % | 2.6 | % | 2.3 | % | 8.4 | % | (42,274,586 | ) | (40,353,605 | ) | 95 | % | (1,920,981 | ) | 5 | % | |||||||||||||||||||
NET OPERATING INCOME | 68,035,029 | 60,120,839 | 88 | % | 7,914,190 | 12 | % | -1.1 | % | 1.1 | % | -15.2 | % | 68,779,434 | 59,445,232 | 86 | % | 9,334,202 | 14 | % | |||||||||||||||||||||||||
Interest Expense | (19,545,736 | ) | (17,912,601 | ) | (1,633,135 | ) | 2.5 | % | 2.8 | % | -1.3 | % | (19,072,935 | ) | (17,418,870 | ) | (1,654,065 | ) | |||||||||||||||||||||||||||
Depreciation & Amortization | (28,409,551 | ) | (25,831,945 | ) | (2,577,606 | ) | 20.0 | % | 22.6 | % | -1.1 | % | (23,673,732 | ) | (21,067,670 | ) | (2,606,062 | ) | |||||||||||||||||||||||||||
OTHER EXPENSES | (47,955,287 | ) | (43,744,546 | ) | (4,210,741 | ) | 12.2 | % | 13.7 | % | -1.2 | % | (42,746,667 | ) | (38,486,540 | ) | (4,260,127 | ) | |||||||||||||||||||||||||||
Gains on sales of int. in R.E. | 5,024,081 | 5,045,007 | (20,926 | ) | 228.5 | % | N/A | -101.4 | % | 1,529,183 | — | 1,529,183 | |||||||||||||||||||||||||||||||||
Income before Minority Int. | 25,103,823 | 21,421,300 | 3,682,523 | -8.9 | % | 2.2 | % | -44.2 | % | 27,561,950 | 20,958,692 | 6,603,258 | |||||||||||||||||||||||||||||||||
Minority Interest in Properties | (41,109 | ) | (41,109 | ) | — | -22.8 | % | -22.8 | % | N/A | (53,268 | ) | (53,268 | ) | — | ||||||||||||||||||||||||||||||
NET INCOME | $ | 25,062,714 | $ | 21,380,191 | 85 | % | $ | 3,682,523 | 15 | % | -8.9 | % | 2.3 | % | -44.2 | % | $ | 27,508,682 | $ | 20,905,424 | 76 | % | $ | 6,603,258 | 26 | % | |||||||||||||||||||
SAME STORE COMPARISON
Q3 05 (3 months ended 9/30/05) | % | % | % | Q3 04 (3 months ended 9/30/04) | |||||||||||||||||||||||||||||||||||||||||
Combined TOTAL | Enclosed Mall | Power and Strip Center | Combined TOTAL | Enclosed Mall | Power and Strip Center | ||||||||||||||||||||||||||||||||||||||||
Base Rents | $ | 66,373,448 | $ | 58,717,848 | $ | 7,655,600 | -0.2 | % | 0.5 | % | -5.3 | % | $ | 66,504,789 | $ | 58,416,744 | $ | 8,088,045 | |||||||||||||||||||||||||||
Straight-Lining of Base Rents | 983,914 | 787,176 | 196,738 | -20.7 | % | -26.5 | % | 16.4 | % | 1,240,219 | 1,071,193 | 169,026 | |||||||||||||||||||||||||||||||||
Percentage Rents | 1,438,143 | 1,390,652 | 47,491 | -15.5 | % | -16.7 | % | 44.9 | % | 1,702,284 | 1,669,506 | 32,778 | |||||||||||||||||||||||||||||||||
Expense Reimbursements | 31,301,166 | 29,647,906 | 1,653,260 | -0.8 | % | -1.8 | % | 22.1 | % | 31,542,251 | 30,188,612 | 1,353,639 | |||||||||||||||||||||||||||||||||
Lease Termination Revenue | 542,343 | 167,343 | 375,000 | -67.9 | % | -12.2 | % | -75.0 | % | 1,690,536 | 190,536 | 1,500,000 | |||||||||||||||||||||||||||||||||
Other Real Estate Revenues | 2,300,123 | 2,230,775 | 69,348 | 8.8 | % | 6.2 | % | 421.6 | % | 2,114,545 | 2,101,250 | 13,295 | |||||||||||||||||||||||||||||||||
TOTAL REAL ESTATE REVENUES | 102,939,137 | 92,941,700 | 90 | % | 9,997,437 | 10 | % | -1.8 | % | -0.7 | % | -10.4 | % | 104,794,624 | 93,637,841 | 89 | % | 11,156,783 | 11 | % | |||||||||||||||||||||||||
Operating and Maintenance | (29,582,029 | ) | (28,496,434 | ) | (1,085,595 | ) | 1.3 | % | 1.0 | % | 9.7 | % | (29,214,671 | ) | (28,225,478 | ) | (989,193 | ) | |||||||||||||||||||||||||||
Real Estate Taxes | (10,086,497 | ) | (9,088,845 | ) | (997,652 | ) | 8.3 | % | 8.1 | % | 9.4 | % | (9,316,258 | ) | (8,403,951 | ) | (912,307 | ) | |||||||||||||||||||||||||||
TOTAL PROPERTY OPERATING EXPENSES | (39,668,526 | ) | (37,585,279 | ) | 95 | % | (2,083,247 | ) | 5 | % | 3.0 | % | 2.6 | % | 9.6 | % | (38,530,929 | ) | (36,629,429 | ) | 95 | % | (1,901,500 | ) | 5 | % | |||||||||||||||||||
NET OPERATING INCOME | 63,270,611 | 55,356,421 | 87 | % | 7,914,190 | 13 | % | -4.5 | % | -2.9 | % | -14.5 | % | 66,263,695 | 57,008,412 | 86 | % | 9,255,283 | 14 | % | |||||||||||||||||||||||||
Interest Expense | (18,788,029 | ) | (17,154,894 | ) | (1,633,135 | ) | 2.0 | % | 2.4 | % | -1.3 | % | (18,413,511 | ) | (16,759,446 | ) | (1,654,065 | ) | |||||||||||||||||||||||||||
Depreciation & Amortization | (25,920,665 | ) | (23,343,059 | ) | (2,577,606 | ) | 10.1 | % | 11.3 | % | 0.3 | % | (23,552,134 | ) | (20,982,409 | ) | (2,569,725 | ) | |||||||||||||||||||||||||||
OTHER EXPENSES | (44,708,694 | ) | (40,497,953 | ) | (4,210,741 | ) | 6.5 | % | 7.3 | % | -0.3 | % | (41,965,645 | ) | (37,741,855 | ) | (4,223,790 | ) | |||||||||||||||||||||||||||
Gains on sales of int. in R.E | — | — | — | N/A | N/A | N/A | — | — | — | ||||||||||||||||||||||||||||||||||||
Income before Minority Int. | 18,561,917 | 14,858,468 | 3,703,449 | -23.6 | % | -22.9 | % | -26.4 | % | 24,298,050 | 19,266,557 | 5,031,493 | |||||||||||||||||||||||||||||||||
Minority Interest in Properties | (41,288 | ) | (41,288 | ) | — | -14.4 | % | -14.4 | % | N/A | (48,230 | ) | (48,230 | ) | — | ||||||||||||||||||||||||||||||
NET INCOME | $ | 18,520,629 | $ | 14,817,180 | 80 | % | $ | 3,703,449 | 20 | % | -23.6 | % | -22.9 | % | -26.4 | % | $ | 24,249,820 | $ | 19,218,327 | 79 | % | $ | 5,031,493 | 21 | % | |||||||||||||||||||
(1) | Includes PREIT’s percent of partnership investments that is “grossed up” to reflect the Company’s share of the Total Revenues and Expenses of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments. |
PAGE 10
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Q3:9/30/05 | % Change | Q3:9/30/04 | |||||||||
FUNDS FROM OPERATIONS (FFO)(1) | |||||||||||
Net Income | $ | 17,895,771 | 25.4 | % | $ | 14,267,872 | |||||
Dividends on Preferred Shares | (3,403,125 | ) | 0.0 | % | (3,403,125 | ) | |||||
Net Income available to common shareholders | $ | 14,492,646 | 33.4 | % | $ | 10,864,747 | |||||
Minority Interest in Operating Partnership-Continuing Operations | 1,781,811 | 17.4 | % | 1,517,300 | |||||||
Minority Interest in Operating Partnership-Discontinued Operations | 441,242 | 115.1 | % | 205,095 | |||||||
Gains on Sales of Interests in Real Estate | (5,024,081 | ) | 228.5 | % | (1,529,183 | ) | |||||
Gains and adjustments to Gains on Disposition of Discontinued Operations | (3,736,414 | ) | N/A | — | |||||||
Depreciation & Amortization: (2) | |||||||||||
Wholly Owned and Consolidated Partnerships | 27,176,980 | 20.5 | % | 22,549,055 | |||||||
Unconsolidated Partnerships | 1,102,720 | 10.0 | % | 1,002,577 | |||||||
Discontinued Operations | — | N/A | 12,540 | ||||||||
FFO | $ | 36,234,904 | 4.7 | % | $ | 34,622,131 | |||||
Minority Interest in Properties | 106,000 | -3.6 | % | 110,000 | |||||||
FFO for Diluted Calculation | $ | 36,340,904 | 4.6 | % | $ | 34,732,131 | |||||
Weighted Average Shares and O.P. Units Outstanding-basic | 40,741,536 | 1.5 | % | 40,131,231 | |||||||
Weighted Average Effect of Common Share Equivalents | 696,700 | 8.9 | % | 639,557 | |||||||
Total Weighted Average Shares Outstanding, including O.P. Units-diluted | 41,438,236 | 1.6 | % | 40,770,788 | |||||||
Net Income per Share (diluted) | $ | 0.39 | 30.0 | % | $ | 0.30 | |||||
FFO per Share (basic) | $ | 0.89 | 3.1 | % | $ | 0.86 | |||||
FFO per Share (diluted) | $ | 0.88 | 2.3 | % | $ | 0.86 | |||||
FUNDS AVAILABLE FOR DISTRIBUTION | |||||||||||
FFO | $ | 36,234,904 | 4.7 | % | $ | 34,622,131 | |||||
Adjustments: | |||||||||||
Straight-Lining of Base Rents | (1,174,962 | ) | -7.5 | % | (1,269,906 | ) | |||||
Recurring Capital Expenditures | (5,390,000 | ) | 91.7 | % | (2,812,227 | ) | |||||
Tenant Allowances | (4,139,000 | ) | 206.7 | % | (1,349,309 | ) | |||||
Capitalized Leasing Costs | (800,960 | ) | 25.6 | % | (637,874 | ) | |||||
Amortization of Debt Premium | (4,851,462 | ) | 0.5 | % | (4,829,622 | ) | |||||
Amortization of Above-and Below- Market Lease Intangibles | 67,600 | -63.4 | % | 184,590 | |||||||
FAD | $ | 19,946,120 | -16.6 | % | $ | 23,907,783 | |||||
Weighted Average Shares and O.P. Units Outstanding | 40,741,536 | 1.5 | % | 40,131,231 | |||||||
FAD per Share | $ | 0.49 | -17.8 | % | $ | 0.60 | |||||
Dividend per Common Share | $ | 0.57 | 5.6 | % | $ | 0.54 | |||||
PAYOUT RATIOS | |||||||||||
Payout Ratio of FFO | 64.1 | % | 1.5 | % | 62.6 | % | |||||
Payout Ratio of FAD | 116.4 | % | 25.8 | % | 90.6 | % | |||||
(1) | Certain prior period amounts have been reclassified to conform with the current period’s presentation. |
(2) | Excludes depreciation of non-real estate assets and amortization of deferred financing costs. |
PAGE 11
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
KEY RATIOS
Q3: 9/30/2005 | Q3: 9/30/2004 | |||||
Coverage Ratio(1) | ||||||
Interest Coverage Ratio (EBITDA/Interest Expense) | 2.56 | 2.82 | ||||
Leverage Ratios(1) | ||||||
Debt / Total Market Capitalization | 48.0 | % | 46.6 | % | ||
Operating Ratios(1) | ||||||
NOI/Real Estate Revenues | 61.1 | % | 62.0 | % | ||
Return on Investment Ratios(1) | ||||||
Total FFO/Equity Market Capitalization, net of preferred shares | 2.1 | % | 2.2 | % | ||
NOI/Total Market Capitalization at Period End | 1.9 | % | 2.2 | % | ||
NOI/Investment in Real Estate at Period End | 2.4 | % | 2.7 | % | ||
Payout Ratios | ||||||
FFO Payout Ratio (Dividend/FFO-basic) per Share | 64.1 | % | 62.6 | % | ||
FAD Payout Ratio (Dividend/FAD) per Share | 116.4 | % | 90.6 | % |
(1) | The calculation of these ratios includes wholly owned properties, PREIT's proportionate share of partnership properties and properties classified as held for sale. |
PAGE 12
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
DEBT SCHEDULE of WHOLLY OWNED PROPERTIES
Property Name | PREIT’s Ownership Interest | Total Investment to Date | PREIT’s Investment to Date (1) | PREIT’s Accumulated Depreciation | PREIT’s Depreciated Costs | PREIT’s Share of O/S Mortgage Debt and Mortgage Debt Premium | PREIT’s Share of Mortgage | |||||||||||||||
Retail Properties | ||||||||||||||||||||||
Beaver Valley Mall | 100 | % | $ | 55,785,498 | $ | 55,785,498 | $ | 5,418,662 | $ | 50,366,836 | $ | 46,506,222 | $ | 46,506,222 | ||||||||
Capital City(2) | 100 | % | 86,185,229 | 86,185,229 | 3,955,645 | 82,229,584 | 57,827,651 | 52,369,929 | ||||||||||||||
Chambersburg Mall(2)(3) | 89 | % | 34,938,530 | 34,938,530 | 1,829,185 | 33,109,345 | 19,670,034 | 18,454,820 | ||||||||||||||
Cherry Hill Mall | 100 | % | 208,625,325 | 208,625,325 | 12,064,782 | 196,560,543 | 200,000,000 | 200,000,000 | ||||||||||||||
Christiana Power I | 100 | % | 39,949,871 | 39,949,871 | 6,257,185 | 33,692,686 | — | — | ||||||||||||||
Court at Oxford Valley | 50 | % | 55,645,206 | 27,822,603 | 5,385,604 | 22,436,999 | 20,762,955 | 20,762,955 | ||||||||||||||
Creekview | 100 | % | 19,094,685 | 19,094,685 | 3,543,275 | 15,551,410 | — | — | ||||||||||||||
Crest Plaza Shopping Center | 100 | % | 16,145,531 | 16,145,531 | 2,311,277 | 13,834,254 | — | — | ||||||||||||||
Crossroads Mall | 100 | % | 31,914,903 | 31,914,903 | 2,032,684 | 29,882,219 | 13,788,085 | 13,249,515 | ||||||||||||||
Cumberland Mall | 100 | % | 54,938,613 | 54,938,613 | 781,178 | 54,157,435 | 46,063,586 | 43,568,163 | ||||||||||||||
3,713,101 | 3,713,101 | |||||||||||||||||||||
Dartmouth Mall | 100 | % | 58,699,872 | 58,699,872 | 13,051,081 | 45,648,791 | 67,710,937 | 67,710,937 | ||||||||||||||
Echelon Mall | 100 | % | 18,863,574 | 18,863,574 | 2,766,703 | 16,096,871 | — | — | ||||||||||||||
Exton Square Mall | 100 | % | 144,312,406 | 144,312,406 | 8,891,104 | 135,421,302 | 102,762,496 | 97,566,027 | ||||||||||||||
Festival at Exton | 100 | % | 19,506,410 | 19,506,410 | 2,883,872 | 16,622,538 | — | — | ||||||||||||||
Francis Scott Key Mall(3) | 89 | % | 61,501,733 | 61,501,733 | 3,162,145 | 58,339,588 | 34,422,559 | 32,295,936 | ||||||||||||||
Gadsden Mall | 100 | % | 50,396,934 | 50,396,934 | 679,206 | 49,717,728 | — | — | ||||||||||||||
Jacksonville Mall(3) | 100 | % | 66,958,090 | 66,958,090 | 3,636,500 | 63,321,590 | 26,554,546 | 24,914,008 | ||||||||||||||
Lehigh Valley Mall | 50 | % | 34,740,900 | 17,370,450 | 10,085,517 | 7,284,933 | 22,537,332 | 22,537,332 | ||||||||||||||
Logan Valley Mall(2)(3) | 100 | % | 91,484,131 | 91,484,131 | 5,685,696 | 85,798,435 | 56,059,596 | 52,596,237 | ||||||||||||||
Lycoming Mall(2)(3) | 89 | % | 55,545,575 | 55,545,575 | 2,817,228 | 52,728,347 | 34,422,560 | 32,295,936 | ||||||||||||||
Magnolia Mall | 100 | % | 65,171,814 | 65,171,814 | 10,574,087 | 54,597,727 | 65,870,083 | 65,870,083 | ||||||||||||||
Metroplex Shopping Center | 50 | % | 83,948,356 | 41,974,178 | 7,183,673 | 34,790,505 | 31,547,389 | 31,547,389 | ||||||||||||||
Moorestown Mall | 100 | % | 75,956,938 | 75,956,938 | 7,314,112 | 68,642,826 | 62,148,967 | 62,148,967 | ||||||||||||||
New River Valley Mall(3) | 89 | % | 30,549,246 | 30,549,246 | 1,612,845 | 28,936,401 | 16,719,529 | 15,686,597 | ||||||||||||||
Nittany Mall(2)(3) | 89 | % | 39,451,070 | 39,451,070 | 1,982,425 | 37,468,645 | 29,505,052 | 27,682,231 | ||||||||||||||
North Hanover Mall(2)(3) | 89 | % | 28,782,662 | 28,782,662 | 1,601,207 | 27,181,455 | 19,670,034 | 18,454,820 | ||||||||||||||
Northeast Tower Center(3) | 100 | % | 33,637,828 | 33,637,828 | 4,008,938 | 29,628,890 | 17,211,280 | 16,147,968 | ||||||||||||||
Orlando Fashion Square | 100 | % | 109,076,886 | 109,076,886 | 2,336,350 | 106,740,536 | — | — | ||||||||||||||
Palmer Park Mall | 100 | % | 33,361,356 | 33,361,356 | 7,377,073 | 25,984,283 | 17,380,406 | 17,380,406 | ||||||||||||||
Patrick Henry Mall(3) | 89 | % | 119,178,026 | 119,178,026 | 5,117,128 | 114,060,898 | 49,666,839 | 46,598,422 | ||||||||||||||
Paxton Towne Centre | 100 | % | 53,688,793 | 53,688,793 | 7,223,143 | 46,465,650 | — | — | ||||||||||||||
Phillipsburg Mall(3) | 89 | % | 48,948,883 | 48,948,883 | 2,568,682 | 46,380,201 | 29,505,052 | 27,682,231 | ||||||||||||||
Plymouth Meeting Mall | 100 | % | 80,723,029 | 80,723,029 | 5,672,026 | 75,051,003 | — | — | ||||||||||||||
Red Rose Commons | 50 | % | 23,883,372 | 11,941,686 | 1,895,287 | 10,046,399 | 13,446,920 | 13,446,920 | ||||||||||||||
Schuylkill Mall(2) (4) | 100 | % | 8,108,061 | 8,108,061 | — | 8,108,061 | 17,113,872 | 17,113,872 | ||||||||||||||
Springfield Park I&II | 50 | % | 14,041,878 | 7,020,939 | 780,591 | 6,240,348 | 1,740,343 | 1,740,343 | ||||||||||||||
South Blanding Village | 100 | % | 9,504,950 | 9,504,950 | 3,544,310 | 5,960,640 | — | — | ||||||||||||||
South Mall(2)(3) | 89 | % | 27,034,526 | 27,034,526 | 1,435,102 | 25,599,424 | 14,752,525 | 13,841,115 | ||||||||||||||
The Commons at Magnolia | 100 | % | 9,784,341 | 9,784,341 | 1,589,665 | 8,194,676 | — | — | ||||||||||||||
The Gallery at Market East I | 100 | % | 48,388,450 | 48,388,450 | 3,097,606 | 45,290,844 | — | — | ||||||||||||||
The Gallery at Market East II | 100 | % | 28,144,480 | 28,144,480 | 981,137 | 27,163,343 | — | — | ||||||||||||||
The Mall at Prince Georges | 100 | % | 92,447,733 | 92,447,733 | 14,939,619 | 77,508,114 | 42,005,076 | 40,975,694 | ||||||||||||||
Uniontown Mall(2)(3) | 89 | % | 35,001,078 | 35,001,078 | 2,290,782 | 32,710,296 | 23,604,042 | 22,145,785 | ||||||||||||||
Valley Mall | 100 | % | 86,263,043 | 86,263,043 | 5,221,372 | 81,041,671 | — | — | ||||||||||||||
Valley View Mall | 100 | % | 60,356,597 | 60,356,597 | 2,993,959 | 57,362,638 | 37,001,794 | 36,520,229 | ||||||||||||||
Viewmont Mall(2)(3) | 89 | % | 76,810,517 | 76,810,517 | 3,579,459 | 73,231,058 | 29,505,052 | 27,682,231 | ||||||||||||||
Washington Crown Center(2) | 89 | % | 42,519,106 | 42,519,106 | 3,522,172 | 38,996,934 | — | — | ||||||||||||||
Whitehall Mall | 50 | % | 31,466,370 | 15,733,185 | 6,237,488 | 9,495,697 | 6,772,430 | 6,772,430 | ||||||||||||||
Willow Grove Park | 100 | % | 176,123,797 | 176,123,797 | 15,336,027 | 160,787,770 | 108,508,276 | 107,649,667 | ||||||||||||||
Wiregrass Mall(5) | 100 | % | 37,458,994 | 37,458,994 | 1,993,347 | 35,465,647 | — | — | ||||||||||||||
Wyoming Valley Mall(2)(3) | 100 | % | 91,367,340 | 91,367,340 | 4,273,353 | 87,093,987 | 56,059,597 | 52,596,238 | ||||||||||||||
Westgate Anchor Pad | 100 | % | 3,378,669 | 3,378,669 | — | 3,378,669 | — | — | ||||||||||||||
Sub-Total Retail Properties | $ | 2,909,791,205 | $ | 2,787,928,164 | $ | 235,521,494 | $ | 2,552,406,670 | $ | 1,442,536,218 | $ | 1,398,224,756 | ||||||||||
Office Properties | ||||||||||||||||||||||
P&S Building | 100 | % | 1,502,711 | 1,502,711 | — | 1,502,711 | — | — | ||||||||||||||
Sub-Total Office Properties | $ | 1,502,711 | $ | 1,502,711 | $ | — | $ | 1,502,711 | $ | — | $ | — | ||||||||||
Land/Development Properties | ||||||||||||||||||||||
Lacey | 100 | % | 15,495,497 | $ | 15,495,497 | $ | — | 15,495,497 | — | — | ||||||||||||
New Garden | 100 | % | 6,221,582 | 6,221,582 | — | 6,221,582 | — | — | ||||||||||||||
New River Valley | 100 | % | 4,395,306 | 4,395,306 | — | 4,395,306 | — | — | ||||||||||||||
Pavilion at Market East | 50 | % | N/A | 1,506,178 | — | 1,506,178 | — | — | ||||||||||||||
The Plaza at Magnolia | 100 | % | 4,300,884 | 4,300,884 | — | 4,300,884 | — | — | ||||||||||||||
Land held for development | 100 | % | 6,099,758 | 6,099,758 | — | 6,099,758 | — | — | ||||||||||||||
Sub-Total Land/Development Properties | $ | 36,513,027 | $ | 38,019,205 | $ | — | $ | 38,019,205 | $ | — | $ | — | ||||||||||
TOTAL for WHOLLY OWNED PROPERTIES | $ | 2,704,080,861 | $ | 2,704,080,861 | $ | 203,953,334 | $ | 2,500,127,527 | $ | 1,345,728,849 | $ | 1,301,417,387 | ||||||||||
TOTAL for PARTNERSHIPS | $ | 243,726,082 | $ | 123,369,219 | $ | 31,568,160 | $ | 91,801,059 | $ | 96,807,369 | $ | 96,807,369 | ||||||||||
$ | — | |||||||||||||||||||||
CORPORATE /LINE OF CREDIT | $ | 276,000,000 | $ | 276,000,000 | ||||||||||||||||||
TOTAL for WHOLLY OWNED and PARTNERSHIP PROPERTIES | $ | 2,947,806,943 | $ | 2,827,450,080 | $ | 235,521,494 | $ | 2,591,928,586 | $ | 1,718,536,218 | $ | 1,674,224,756 | $ | 44,311,462 | ||||||||
Property Name | PREIT’s Share of Mortgage Debt Premium | Current Mortgages Interest Rate | Marked to Market Interest Rate (GAAP) | Annual Mortgage Debt Service | Mortgage Balance at Maturity | Date of Maturity | |||||||||||||
Retail Properties | |||||||||||||||||||
Beaver Valley Mall | $ | — | 7.36 | % | 7.36 | % | $ | 3,972,402 | $ | 42,265,601 | 2012 | ||||||||
Capital City(2) | 5,457,722 | 7.61 | % | 5.50 | % | 4,602,529 | 47,842,921 | 2012 | |||||||||||
Chambersburg Mall(2)(3) | 1,215,214 | 7.43 | % | 4.99 | % | 1,762,666 | 17,199,298 | 2008 | |||||||||||
Cherry Hill Mall | — | 5.42 | % | — | 13,509,720 | 177,689,279 | 2012 | ||||||||||||
Christiana Power I | — | — | — | — | — | ||||||||||||||
Court at Oxford Valley | — | 8.02 | % | — | 2,319,426 | 15,666,965 | 2011 | ||||||||||||
Creekview | — | — | — | — | — | ||||||||||||||
Crest Plaza Shopping Center | — | — | — | — | — | ||||||||||||||
Crossroads Mall | 538,570 | 7.39 | % | 5.75 | % | 1,191,103 | 12,646,534 | 2008 | |||||||||||
Cumberland Mall | 2,495,423 | 6.50 | % | 5.40 | % | 3,413,167 | 38,782,131 | 2012 | |||||||||||
— | 5.00 | % | 5.00 | % | 205,512 | — | 2017 | ||||||||||||
Dartmouth Mall | — | 4.95 | % | 4.95 | % | 4,483,668 | 57,594,279 | 2013 | |||||||||||
Echelon Mall | — | — | — | ||||||||||||||||
Exton Square Mall | 5,196,469 | 6.95 | % | 5.00 | % | 8,102,242 | 93,034,213 | 2008 | |||||||||||
Festival at Exton | — | — | — | — | — | ||||||||||||||
Francis Scott Key Mall(3) | 2,126,623 | 7.43 | % | 4.99 | % | 3,084,665 | 30,098,771 | 2008 | |||||||||||
Gadsden Mall | — | — | — | — | — | ||||||||||||||
Jacksonville Mall(3) | 1,640,538 | 7.43 | % | 4.99 | % | 2,379,598 | 23,219,052 | 2008 | |||||||||||
Lehigh Valley Mall | — | 7.90 | % | — | 2,479,260 | 21,750,439 | 2006 | ||||||||||||
Logan Valley Mall(2)(3) | 3,463,359 | 7.43 | % | 4.99 | % | 5,023,597 | 49,017,998 | 2008 | |||||||||||
Lycoming Mall(2)(3) | 2,126,624 | 7.43 | % | 4.99 | % | 3,084,664 | 30,098,771 | 2008 | |||||||||||
Magnolia Mall | — | 5.33 | % | — | 4,412,779 | 54,212,017 | 2015 | ||||||||||||
Metroplex Shopping Center | — | 7.25 | % | — | 2,680,953 | 28,784,676 | 2011 | ||||||||||||
Moorestown Mall | — | 4.95 | % | 4.95 | % | 4,115,367 | 52,863,321 | 2013 | |||||||||||
New River Valley Mall(3) | 1,032,932 | 7.43 | % | 4.99 | % | 1,498,266 | 14,619,403 | 2008 | |||||||||||
Nittany Mall(2)(3) | 1,822,821 | 7.43 | % | 4.99 | % | 2,643,998 | 25,798,946 | 2008 | |||||||||||
North Hanover Mall(2)(3) | 1,215,214 | 7.43 | % | 4.99 | % | 1,762,666 | 17,199,298 | 2008 | |||||||||||
Northeast Tower Center(3) | 1,063,312 | 7.43 | % | 4.99 | % | 1,542,332 | 15,049,385 | 2008 | |||||||||||
Orlando Fashion Square | — | — | — | — | — | — | |||||||||||||
Palmer Park Mall | — | 6.77 | % | 6.77 | % | 1,661,220 | 15,674,394 | 2009 | |||||||||||
Patrick Henry Mall(3) | 3,068,417 | 7.43 | % | 4.99 | % | 4,450,730 | 43,428,226 | 2008 | |||||||||||
Paxton Towne Centre | — | — | — | — | — | — | |||||||||||||
Phillipsburg Mall(3) | 1,822,821 | 7.43 | % | 4.99 | % | 2,643,998 | 25,798,946 | 2008 | |||||||||||
Plymouth Meeting Mall | — | — | — | — | — | — | |||||||||||||
Red Rose Commons | — | 7.66 | % | — | 1,220,048 | 12,425,422 | 2009 | ||||||||||||
Schuylkill Mall(2) (4) | — | 7.25 | % | 7.25 | % | N/A | N/A | 2008 | |||||||||||
Springfield Park I&II | — | 7.79 | % | 202,561 | 1,411,804 | 2010 | |||||||||||||
South Blanding Village | — | — | — | — | — | — | |||||||||||||
South Mall(2)(3) | 911,410 | 7.43 | % | 4.99 | % | 1,321,999 | 12,899,473 | 2008 | |||||||||||
The Commons at Magnolia | — | — | — | — | — | — | |||||||||||||
The Gallery at Market East I | — | — | — | — | — | — | |||||||||||||
The Gallery at Market East II | — | — | — | — | — | — | |||||||||||||
The Mall at Prince Georges | 1,029,382 | 8.70 | % | 6.80 | % | 4,134,937 | 39,986,536 | 2007 | |||||||||||
Uniontown Mall(2)(3) | 1,458,257 | 7.43 | % | 4.99 | % | 2,115,199 | 20,639,157 | 2008 | |||||||||||
Valley Mall | — | — | — | — | — | — | |||||||||||||
Valley View Mall | 481,565 | 6.15 | % | 5.75 | % | 2,773,295 | 34,280,656 | 2009 | |||||||||||
Viewmont Mall(2)(3) | 1,822,821 | 7.43 | % | 4.99 | % | 2,643,998 | 25,798,946 | 2008 | |||||||||||
Washington Crown Center(2) | — | — | — | — | — | — | |||||||||||||
Whitehall Mall | — | 6.77 | % | — | 641,436 | 6,128,937 | 2008 | ||||||||||||
Willow Grove Park | 858,609 | 8.39 | % | 6.37 | % | 10,046,933 | 107,307,726 | 2006 | |||||||||||
Wiregrass Mall(5) | — | — | — | — | — | — | |||||||||||||
Wyoming Valley Mall(2)(3) | 3,463,359 | 7.43 | % | 4.99 | % | 5,023,597 | 49,017,998 | 2008 | |||||||||||
Westgate Anchor Pad | — | — | — | — | — | — | |||||||||||||
Sub-Total Retail Properties | $ | 44,311,462 | 6.83 | % | 5.16 | % | $ | 117,150,531 | $ | 1,260,231,519 | |||||||||
Office Properties | |||||||||||||||||||
P&S Building | — | 0.00 | % | 0.00 | % | $ | — | $ | — | — | |||||||||
Sub-Total Office Properties | $ | — | — | — | $ | — | $ | — | |||||||||||
Land/Development Properties | |||||||||||||||||||
Lacey | — | — | — | — | — | — | |||||||||||||
New Garden | — | — | — | — | — | — | |||||||||||||
New River Valley | — | — | — | — | — | — | |||||||||||||
Pavilion at Market East | — | — | — | — | — | — | |||||||||||||
The Plaza at Magnolia | — | — | — | — | — | — | |||||||||||||
Land held for development | — | — | — | — | — | — | |||||||||||||
Sub-Total Land/Development Properties | $ | — | — | — | $ | — | $ | — | |||||||||||
TOTAL for WHOLLY OWNED PROPERTIES | $ | 44,311,462 | 6.77 | % | 5.16 | % | $ | 107,606,847 | $ | 1,174,063,276 | |||||||||
TOTAL for PARTNERSHIPS | $ | — | 7.60 | % | 7.60 | % | $ | 9,543,684 | $ | 86,168,243 | |||||||||
CORPORATE /LINE OF CREDIT | $ | — | |||||||||||||||||
TOTAL for WHOLLY OWNED and PARTNERSHIP PROPERTIES | 6.83 | % | 5.33 | % | $ | 117,150,531 | $ | 1,260,231,519 | |||||||||||
(1) | Includes development and CIP costs. |
(2) | PREIT has an 89% ownership interest and a 99% economic interest in these properties. These properties are consolidated for financial reporting purposes. |
(3) | Mortgage Debt represents the properties’ allocated portion of the REMIC provided by General Electric Capital Corporation |
(4) | In December 2004, the Company completed a modification of the mortgage on Schuylkill Mall. The modification limits the monthly payments to interest plus the excess cash flow from the property after management fees, leasing commissions, and lender-approved capital expenditures. Monthly excess cash flow will accumulate throughout the year in escrow, and an annual principal payment will be made on the last day of each year from this account. All other terms of the loan remained unchanged. Due to the modification, the timing of future principal payment amounts can not be determined. |
PAGE 13
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Amortization of Debt Premium Schedule(1)
Scheduled Amortization of Premium | Debt Premium Balance | |||||
Q3 05 | $ | 44,311,462 | ||||
Q4 05 | 3,902,278 | 40,409,184 | ||||
Q1 06 | 3,707,638 | 36,701,546 | ||||
Q2 06 | 3,364,389 | 33,337,157 | ||||
Q3 06 | 3,348,669 | 29,988,488 | ||||
Q4 06 | 3,324,908 | 26,663,580 | ||||
Q1 07 | 3,300,910 | 23,362,670 | ||||
Q2 07 | 3,299,681 | 20,062,989 | ||||
Q3 07 | 3,135,723 | 16,927,266 | ||||
Q4 07 | 3,110,838 | 13,816,428 | ||||
Q1 08 | 3,093,316 | 10,723,112 | ||||
Q2 08 | 3,083,019 | 7,640,093 | ||||
Q3 08 | 3,017,091 | 4,623,002 | ||||
Q4 08 | 596,438 | 4,026,564 | ||||
Q1 09 | 320,666 | 3,705,898 | ||||
Q2 09 | 334,270 | 3,371,628 | ||||
Q3 09 | 332,872 | 3,038,756 | ||||
Q4 09 | 295,072 | 2,743,684 | ||||
Q1 10 | 286,447 | 2,457,237 | ||||
Q2 10 | 299,845 | 2,157,392 | ||||
Q3 10 | 298,489 | 1,858,903 | ||||
Q4 10 | 289,844 | 1,569,059 | ||||
Q1 11 | 281,258 | 1,287,801 | ||||
Q2 11 | 294,287 | 993,514 | ||||
Q3 11 | 292,828 | 700,686 | ||||
Q4 11 | 284,220 | 416,466 | ||||
Q1 12 | 215,864 | 200,602 | ||||
Q2 12 | 88,293 | 112,309 | ||||
Q3 12 | 87,817 | 24,492 | ||||
Q4 12 | 24,492 | — | ||||
$ | 44,311,462 |
(1) | The above schedule assumes that PREIT continues to own the corresponding properties throughout the period presented and that no refinancings occur to pay off the debt on those properties. The above schedule also assumes that PREIT does not acquire additional properties with above or below market debt in place where adjustments would be made to reflect a debt premium or discount. |
PAGE 14
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
DEBT ANALYSIS
Outstanding Debt(1)
Fixed Rate | % of Total Indebtedness | Floating Rate | % of Total Indebtedness | Total | % of Total Indebtedness | |||||||||||||
Wholly Owned | ||||||||||||||||||
Mortgage Notes Payable | $ | 1,345,728,849 | 78.3 | % | $ | — | 0.0 | % | $ | 1,345,728,849 | 78.3 | % | ||||||
Partnerships (at PREIT’s share) | ||||||||||||||||||
Mortgage Notes Payable | 96,807,369 | 5.6 | % | — | 0.0 | % | 96,807,369 | 5.6 | % | |||||||||
Corporate | ||||||||||||||||||
Revolving Line of Credit | — | 0.0 | % | 276,000,000 | 16.1 | % | 276,000,000 | 16.1 | % | |||||||||
TOTAL OUTSTANDING DEBT | 1,442,536,218 | 276,000,000 | 1,718,536,218 | |||||||||||||||
SWAP | — | — | — | |||||||||||||||
TOTAL DEBT AFTER HEDGE | $ | 1,442,536,218 | 83.9 | % | $ | 276,000,000 | 16.1 | % | $ | 1,718,536,218 | 100.0 | % | ||||||
(1) | Includes mark to market of debt. |
OUTSTANDING PRINCIPAL BALANCE
Weighted Average Interest Rates
Principal Balance | Weighted Average Interest Rate | |||||
Fixed Rate Debt | $ | 1,398,224,756 | 6.83 | % | ||
Mortgage Debt Premium | 44,311,462 | N/A | ||||
Floating Rate Debt | 276,000,000 | 4.55 | % | |||
TOTAL(1) | $ | 1,718,536,218 | 6.45 | % | ||
(1) | Weighted average interest rate is based on principal balance excluding mortgage debt premium |
Interest Rate Hedging Instruments(1)
Notional Amount | Blended Rate | Latest Settlement Date | ||||||
SWAP | $ | 120,000,000 | 4.69 | % | 10/31/2007 | |||
SWAP | $ | 250,000,000 | 4.80 | % | 12/10/2008 |
(1) | On June 7, 2005 The Company announced that it had entered into interest rate swap agreements to hedge interest rates on $370 million of future debt. |
Mortgage Maturity Schedule (1)
Year | Mortgage Balance at Maturity | % of Debt Expiring | Cumulative % of Debt Expiring | ||||||
2006 | $ | 129,058,165 | 10.2 | % | 10.2 | % | |||
2007 | 39,986,536 | 3.2 | % | 13.4 | % | ||||
2008 | 511,693,352 | 40.6 | % | 54.0 | % | ||||
2009 | 62,380,472 | 4.9 | % | 59.0 | % | ||||
2010 | 1,411,804 | 0.1 | % | 59.1 | % | ||||
2011 | 44,451,641 | 3.5 | % | 62.6 | % | ||||
2012 | 306,579,932 | 24.3 | % | 86.9 | % | ||||
2013 | 110,457,600 | 8.8 | % | 95.7 | % | ||||
Thereafter | 54,212,017 | 4.3 | % | 100.0 | % | ||||
$ | 1,260,231,519 | 100.0 | % | ||||||
(1) | The average period to mortgage maturity is 4.7 years. |
Average Debt Balance
Mortgage Debt (1) | Line of Credit & Bank Loans | REMIC(1) | TOTAL | |||||||||||||||
Beginning Balance | 6/30/2005 | $ | 823,145,271 | $ | 431,000,000 | $ | 461,836,464 | $ | 1,715,981,827 | |||||||||
Refinancing Magnolia Mall | 7/11/2005 | 46,697,913 | (47,000,000 | ) | — | (302,087 | ) | |||||||||||
Paydown | 7/15/2005 | (4,000,000 | ) | (4,000,000 | ) | |||||||||||||
Disposition- Laurel Mall | 7/29/2005 | (9,040,808 | ) | (9,040,808 | ) | |||||||||||||
Working Capital | 9/15/2005 | 26,000,000 | — | 26,000,000 | ||||||||||||||
Refinancing Cherry Hill Mall | 9/30/2005 | 129,762,451 | (130,000,000 | ) | (237,549 | ) | ||||||||||||
Debt Amortization (2) | 9/30/2005 | (5,356,906 | ) | (4,508,167 | ) | (9,865,073 | ) | |||||||||||
Ending Balance | 9/30/2005 | $ | 985,207,921 | $ | 276,000,000 | $ | 457,328,297 | $ | 1,718,536,218 | |||||||||
Weighted Average Balance | $ | 858,068,750 | $ | 390,510,870 | $ | 461,836,464 | $ | 1,710,416,083 | ||||||||||
(1) | Includes mark to market of debt. |
(2) | Includes the amortization of debt premium. |
PAGE 15
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
DEBT RATIOS(1)
9/30/2005 | 9/30/2004 | |||||||
Total Liabilities to Gross Asset Value | ||||||||
Ratio of Total Liabilities(2) to Gross Asset Value(3)(4)less than or equal to 0.65 to 1.00. | ||||||||
Total Liabilities | $ | 1,768,161,947 | $ | 1,504,604,212 | ||||
Gross Asset Value | $ | 3,568,129,714 | $ | 3,022,626,040 | ||||
Ratio | 49.55 | % | 49.78 | % | ||||
EBITDA to Interest Expense | ||||||||
Ratio of EBITDA(5) to Interest Expense(6)greater than or equal to 1.90 to 1.00. | ||||||||
EBITDA | $ | 253,228,431 | $ | 219,394,765 | ||||
Interest Expense | $ | 110,218,077 | $ | 97,882,204 | ||||
Ratio | 2.30 | 2.24 | ||||||
Adjusted EBITDA to Fixed Charges | ||||||||
Ratio of Adjusted EBITDA(7)to Fixed Charges(8)greater than or equal to 1.50 to 1.00. | ||||||||
Adjusted EBITDA | $ | 251,827,672 | $ | 217,750,933 | ||||
Fixed Charges | $ | 146,767,821 | $ | 130,138,879 | ||||
Ratio | 1.72 | 1.67 | ||||||
Secured Indebtedness to Gross Asset Value | ||||||||
Ratio of Secured Indebtedness(9)to Gross Asset Value(3) (4) less than or equal to 0.60 to 1.00. | ||||||||
Secured Indebtedness | $ | 1,398,224,756 | $ | 1,305,144,423 | ||||
Gross Asset Value | $ | 3,568,129,714 | $ | 3,022,626,040 | ||||
Ratio | 39.19 | % | 43.18 | % | ||||
(1) | Debt ratios are based on loan covenants included in the Company’s Credit Facility, led by Wells Fargo Bank National Association, which was effective as of November 20, 2003 and as amended on January 31, 2005. |
(2) | Total Liabilities defined as: Total PREIT consolidated GAAP liabilities plus certain letters of credit and other off balance sheet liabilities. |
(3) | For the 9/30/2004 calculation Gross Asset Value was defined as: The sum of (i) Adjusted NOI for all Properties of PREIT, its subsidiaries and unconsolidated affiliates (excluding adjusted NOI for development and major redevelopment Property and the non-core properties) for the previous rolling four quarter period, capitalized at 9.00%, plus (ii) cash and cash equivalents plus (iii) all accounts receivable net of reserves plus (iv) book value of Property upon which construction is in progress and land held for development plus (v) development costs plus (vi) adjusted NOI for major redevelopment Property for the recent fiscal quarter (excluding those acquired or disposed of during such quarter) multiplied by 4 and capitalized at 9.00% plus (vii) redevelopment and predevelopment costs plus (viii) the purchase price of Property purchased in the last 2 fiscal quarters (excluding Crown properties) plus (ix) greater of PREIT’s: (a) ownership share or (b) recourse share of book value of construction in progress of unconsolidated affiliates plus (x) purchase price of Property by PREIT and its subsidiaries subject to purchase obligations, purchase obligations, forward commitments and unfunded obligations plus (xi) adjusted NOI for all non-core properties for the previous rolling four quarters capitalized at 11.00%. Capitalized terms used in this footnote shall have the meanings ascribed to such terms in the Credit Agreement. |
(4) | For the 9/30/2005 calculation Gross Asset Value is defined as: The sum of (i) Adjusted NOI for all Properties of PREIT, its subsidiaries and unconsolidated affiliates (excluding adjusted NOI for development and major redevelopment Property) for the previous rolling four quarter period, capitalized at 8.25%, plus (ii) cash and cash equivalents plus (iii) all accounts receivable net of reserves plus (iv) book value of Property upon which construction is in progress and land held for development plus (v) development costs plus (vi) adjusted NOI for major redevelopment Properties for the recent fiscal quarter (excluding those acquired or disposed of during such quarter) multiplied by 4 and capitalized at 8.25% plus (vii) redevelopment and predevelopment costs plus (viii) the purchase price of Property purchased in the last 2 fiscal quarters plus (ix) greater of PREIT’s: (a) ownership share or (b) recourse share of book value of construction in progress of unconsolidated affiliates plus (x) purchase price of Property by PREIT and its subsidiaries subject to purchase obligations, purchase obligations, forward commitments and unfunded obligations. Capitalized terms used in this footnote shall have the meanings ascribed to such terms in the Credit Agreement. |
(5) | EBITDA defined as: Rolling four quarters of net earnings (loss) of the Company before minority interests and distributions to holders of Preferred Stock, plus the sum of (i) depreciation and amortization expense and other non-cash charges, plus (ii) interest expense, plus (iii) all provisions for income taxes, minus (plus) (iv) extraordinary gains (losses), plus (v) the greater of (a) ownership share or (b) recourse share of EBITDA of unconsolidated affiliates. |
(6) | Interest Expense defined as: All paid, accrued or capitalized interest expense excluding capitalized interest funded from construction loans plus the greater of (a) ownership share or (b) recourse share of all paid, accrued or capitalized interest expense of unconsolidated affiliates. |
(7) | Adjusted EBITDA defined as: EBITDA plus ground rent payments minus the Reserve for Replacements for all Properties. |
(8) | Fixed Charges defined as: Interest Expense plus regularly scheduled principal payments on Indebtedness other than any balloon, bullet or similar principal payment on any Indebtedness plus preferred dividends payments plus ground rent payments. |
(9) | Secured Indebtedness defined as: (a) Aggregated principal amount of all Indebtedness that is secured by any Lien and (b) Indebtedness under a Guaranty of the Secured Indebtedness of another. |
PAGE 16
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
PORTFOLIO SUMMARY—RETAIL
(Ordered by State)
Retail Properties (1) | City | State | Property Subtype | Management Status | Property Status | Ownership Interest | Date Acquired | Year Built/ Last Renovated | Years Since Renovation | ||||||||||
Wiregrass Commons | Dothan | AL | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1986/1999 | 6 | |||||||||
Gadsden Mall | Gadsden | AL | Enclosed Mall | PREIT | New | 100 | % | 2005 | 1974/1990 | 15 | |||||||||
Christiana Power Center I | Newark | DE | Power Center | PREIT | Existing | 100 | % | 1998 | 1998 | 7 | |||||||||
South Blanding Village | Jacksonville | FL | Strip Center | PREIT | Existing | 100 | % | 1988/1990 | 1986 | 19 | |||||||||
Orlando Fashion Square | Orlando | FL | Enclosed Mall | PREIT | New | 100 | % | 2004 | 1973/2003 | 2 | |||||||||
Francis Scott Key Mall(2) | Frederick | MD | Enclosed Mall | PREIT | Existing | 89 | % | 2003 | 1978/1991 | 14 | |||||||||
Valley Mall | Hagerstown | MD | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1974/1999 | 6 | |||||||||
The Mall at Prince Georges | Hyattsville | MD | Enclosed Mall | PREIT | Existing | 100 | % | 1998 | 1959/2004 | 0 | |||||||||
Dartmouth Mall | Dartmouth | MA | Enclosed Mall | PREIT | Existing | 100 | % | 1997 | 1971/2000 | 5 | |||||||||
Cherry Hill Mall | Cherry Hill | NJ | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1961/1990 | 15 | |||||||||
Moorestown Mall | Moorestown | NJ | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1963/2000 | 5 | |||||||||
Phillipsburg Mall | Phillipsburg | NJ | Enclosed Mall | PREIT | Existing | 89 | % | 2003 | 1989/2003 | 2 | |||||||||
Cumberland Mall | Vineland | NJ | Enclosed Mall | PREIT | New | 100 | % | 2005 | 1973/2003 | 2 | |||||||||
Echelon Mall | Voorhees | NJ | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1970/1998 | 7 | |||||||||
Jacksonville Mall | Jacksonville | NC | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1981/1998 | 7 | |||||||||
Crest Plaza Shopping Center | Allentown | PA | Strip Center | PREIT | Existing | 100 | % | 1964 | 1959/2003 | 2 | |||||||||
Lehigh Valley Mall | Allentown | PA | Enclosed Mall | Third Party | Existing | 50 | % | 1973 | 1977/1996 | 9 | |||||||||
South Mall(2) | Allentown | PA | Enclosed Mall | PREIT | Existing | 89 | % | 2003 | 1975/1992 | 13 | |||||||||
Whitehall Mall | Allentown | PA | Power Center | Third Party | Existing | 50 | % | 1964 | 1964/1998 | 7 | |||||||||
Logan Valley Mall(2) | Altoona | PA | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1960/1997 | 8 | |||||||||
Capital City Mall(2) | Camp Hill | PA | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1974/2005 | 0 | |||||||||
Chambersburg Mall(2) | Chambersburg | PA | Enclosed Mall | PREIT | Existing | 89 | % | 2003 | 1982 | 23 | |||||||||
Palmer Park Mall | Easton | PA | Enclosed Mall | PREIT | Existing | 100 | % | 1972/2003 | 1972/1998 | 7 |
Retail Properties (1) | Owned GLA (anchors) | Owned GLA (non- anchors) | TOTAL Owned GLA | Space Not Owned (Name/GLA) | TOTAL Property GLA | Anchors / Majors Tenants | Lease Expiration | |||||||||
Wiregrass Commons | — | 229,713 | 229,713 | Dillard’s JC Penney McRaes Parisian | 403,163 | 632,876 | Dillard’s JC Penney McRaes Parisian | N/A N/A N/A N/A | ||||||||
Gadsden Mall | 274,060 | 203,489 | 477,549 | — | 477,549 | Belk McRae’s Sears | 2/19/11 7/31/14 3/5/09 | |||||||||
Christiana Power Center I | 190,814 | 111,595 | 302,409 | — | 302,409 | Costco Dick’s Sporting Goods | 1/31/19 11/30/13 | |||||||||
South Blanding Village | 73,921 | 32,836 | 106,757 | — | 106,757 | Staples Food Lion | 9/30/08 7/31/08 | |||||||||
Orlando Fashion Square | 491,999 | 436,417 | 928,416 | Sears | 155,576 | 1,083,992 | Burdines-Macy’s Dillard’s JC Penney Sears | 10/31/71 1/31/14 4/30/13 N/A | ||||||||
Francis Scott Key Mall(2) | 291,620 | 275,453 | 567,073 | Hecht’s | 139,333 | 706,406 | Hecht’s Sears JC Penney Value City | N/A 7/31/08 5/31/06 6/30/10 | ||||||||
Valley Mall | 294,348 | 364,960 | 659,308 | Sears Hecht’s | 243,400 | 902,708 | Sears JC Penney Bon-Ton Hecht’s | N/A 10/3/09 1/31/14 N/A | ||||||||
The Mall at Prince Georges | 479,619 | 355,941 | 835,560 | — | 835,560 | JC Penney Hecht’s Target | 7/31/06 10/31/08 1/31/10 | |||||||||
Dartmouth Mall | 208,460 | 322,350 | 530,810 | Filene’s | 140,000 | 670,810 | JC Penney Sears Filene’s | 7/31/09 4/12/16 N/A | ||||||||
Cherry Hill Mall | — | 522,383 | 522,383 | JC Penney Macy’s Strawbridge’s | 740,770 | 1,263,153 | JC Penney Macy’s Strawbridge’s | N/A N/A N/A | ||||||||
Moorestown Mall | 408,356 | 316,575 | 724,931 | Lord & Taylor Strawbridge’s | 321,200 | 1,046,131 | Boscov’s Lord & Taylor Sears Strawbridge’s | 10/31/10 N/A 10/5/22 N/A | ||||||||
Phillipsburg Mall | 326,170 | 243,081 | 569,251 | — | 569,251 | Bon-Ton JC Penney Sears Kohl’s | 1/31/10 3/31/10 4/30/09 1/31/25 | |||||||||
Cumberland Mall | 283,365 | 364,810 | 648,175 | BJ’s Boscov’s | 273,230 | 921,405 | Boscov’s Home Depot JC Penney Value City | N/A 10/31/19 11/30/08 7/31/08 | ||||||||
Echelon Mall | 297,323 | 433,195 | 730,518 | Boscov’s Strawbridge’s | 396,783 | 1,127,301 | Boscov’s Strawbridge’s | N/A N/A | ||||||||
Jacksonville Mall | 242,115 | 231,762 | 473,877 | — | 473,877 | Belk JC Penney Sears | 8/21/11 8/31/10 8/4/11 | |||||||||
Crest Plaza Shopping Center | 53,445 | 60,826 | 114,271 | Target | 143,130 | 257,401 | Weis Market Target | 1/31/07 N/A | ||||||||
Lehigh Valley Mall | 212,000 | 463,490 | 675,490 | JC Penney Strawbridge’s Firestone | 371,986 | 1,047,476 | Macy’s JC Penney Strawbridge’s | 7/31/12 N/A N/A | ||||||||
South Mall(2) | 188,858 | 214,870 | 403,728 | — | 403,728 | Bon-Ton Stein Mart Steve & Barry’s | 1/28/11 10/31/06 1/31/11 | |||||||||
Whitehall Mall | 294,635 | 232,170 | 526,805 | — | 526,805 | Kohl’s Sears Bed, Bath & Beyond | 3/9/07 9/18/11 1/31/10 | |||||||||
Logan Valley Mall(2) | 454,387 | 327,245 | 781,632 | — | 781,632 | JC Penney Kaufmann’s Sears | 6/30/17 1/31/10 10/31/16 | |||||||||
Capital City Mall(2) | 204,301 | 251,669 | 455,970 | Hecht’s | 120,000 | 575,970 | JC Penney Hecht’s Sears | 11/30/10 N/A 7/28/09 | ||||||||
Chambersburg Mall(2) | 241,690 | 212,251 | 453,941 | — | 453,941 | Bon-Ton JC Penney Sears Value City | 1/28/11 3/31/12 2/9/10 2/28/07 | |||||||||
Palmer Park Mall | 314,235 | 139,558 | 453,793 | — | 453,793 | Bon-Ton Boscov’s | 7/25/14 10/31/18 |
PAGE 17A
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
PORTFOLIO SUMMARY—RETAIL
(Ordered by State)
Retail Properties (1) | City | State | Property Subtype | Management Status | Property Status | Ownership Interest | Date Acquired | Year Built/ Last Renovated | Years Since Renovation | ||||||||||
Exton Square Mall | Exton | PA | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1973/2000 | 5 | |||||||||
Festival at Exton | Exton | PA | Strip Center | PREIT | Existing | 100 | % | 1998 | 1991 | 14 | |||||||||
North Hanover Mall(2) | Hanover | PA | Enclosed Mall | PREIT | Existing | 89 | % | 2003 | 1967/1999 | 6 | |||||||||
Paxton Towne Centre | Harrisburg | PA | Power Center | PREIT | Existing | 100 | % | 1999 | 2001 | 4 | |||||||||
Red Rose Commons | Lancaster | PA | Power Center | Third Party | Existing | 50 | % | 1998 | 1998 | 7 | |||||||||
The Court at Oxford Valley | Langhorne | PA | Power Center | Third Party | Existing | 50 | % | 1997 | 1996 | 9 | |||||||||
Beaver Valley Mall | Monaca | PA | Enclosed Mall | PREIT | Existing | 100 | % | 2002 | 1970/1991 | 14 | |||||||||
Lycoming Mall(2) | Pennsdale | PA | Enclosed Mall | PREIT | Existing | 89 | % | 2003 | 1978/1990 | 15 | |||||||||
Northeast Tower Center | Philadelphia | PA | Power Center | PREIT | Existing | 100 | % | 1998/1999 | 1997/1998 | 7 | |||||||||
The Gallery at Market East I(3) | Philadelphia | PA | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1977/1990 | 15 | |||||||||
The Gallery at Market East II(3) | Philadelphia | PA | Enclosed Mall | PREIT | Existing | 100 | % | 2004 | 1984 | 21 | |||||||||
Plymouth Meeting Mall | Plymouth Meeting | PA | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1966/1999 | 6 | |||||||||
Metroplex Shopping Center | Plymouth Meeting | PA | Power Center | Third Party | Existing | 50 | % | 1999 | 2001 | 4 | |||||||||
Viewmont Mall(2) | Scranton | PA | Enclosed Mall | PREIT | Existing | 89 | % | 2003 | 1968/1996 | 9 | |||||||||
Springfield Park I & II | Springfield | PA | Strip Center | PREIT | Existing | 50 | % | 1997/1998 | 1997/1998 | 7 | |||||||||
Nittany Mall(2) | State College | PA | Enclosed Mall | PREIT | Existing | 89 | % | 2003 | 1968/1990 | 15 | |||||||||
Uniontown Mall(2) | Uniontown | PA | Enclosed Mall | PREIT | Existing | 89 | % | 2003 | 1972/1990 | 15 | |||||||||
Creekview Shopping Center | Warrington | PA | Power Center | PREIT | Existing | 100 | % | 1999 | 2001 | 4 |
Retail Properties (1) | Owned GLA (anchors) | Owned GLA (non- anchors) | TOTAL Owned GLA | Space Not Owned (Name/GLA) | TOTAL Property GLA | Anchors / Majors Tenants | Lease Expiration | |||||||||
Exton Square Mall | 440,301 | 369,958 | 810,259 | Strawbridge’s K-Mart | 277,468 | 1,087,727 | Boscov’s JC Penney K-Mart Sears Strawbridge’s | 10/31/19 5/31/20 N/A 1/31/20 N/A | ||||||||
Festival at Exton | 60,425 | 84,618 | 145,043 | — | 145,043 | Sears Hardware | 12/31/2005 | |||||||||
North Hanover Mall(2) | 288,177 | 164,903 | 453,080 | — | 453,080 | Bon-Ton JC Penney Black Rose Antiques Sears | 1/31/06 1/31/11 N/A 11/30/09 | |||||||||
Paxton Towne Centre | 151,627 | 292,856 | 444,483 | Target Costco | 273,058 | 717,541 | Target Kohl’s Weis Markets Costco | N/A 1/25/21 11/30/20 N/A | ||||||||
Red Rose Commons | — | 263,452 | 263,452 | Weis Markets Home Depot | 199,590 | 463,042 | Weis Markets Home Depot | N/A N/A | ||||||||
The Court at Oxford Valley | 176,831 | 280,032 | 456,863 | Home Depot BJ’s | 247,623 | 704,486 | Best Buy BJ’s Dick’s Sporting Gds Home Depot Linens N Things | 12/31/11 N/A 4/15/11 N/A 2/14/17 | ||||||||
Beaver Valley Mall | 511,267 | 434,485 | 945,752 | Kaufmann’s | 204,770 | 1,150,522 | Boscov’s JC Penney Sears Kaufmann’s | 9/30/18 9/30/17 8/15/11 N/A | ||||||||
Lycoming Mall(2) | 321,441 | 341,551 | 662,992 | Kaufmann’s | 120,000 | 782,992 | Bon-Ton JC Penney Kaufman’s Sears Value City | 7/31/06 10/31/10 N/A 7/31/08 7/31/08 | ||||||||
Northeast Tower Center | 119,388 | 182,521 | 301,909 | Raymour & Flanigan Home Depot | 175,311 | 477,220 | Home Depot Petsmart Raymour & Flanigan | N/A 2/28/12 N/A | ||||||||
Wal-Mart | 1/31/14 | |||||||||||||||
The Gallery at Market East I(3) | 193,365 | 193,365 | — | 193,365 | K-Mart Strawbridge’s | N/A N/A | ||||||||||
The Gallery at Market East II(3) | 127,271 | 206,570 | 333,841 | — | 333,841 | Burlington Coat Factory | 2/28/2032 | |||||||||
Plymouth Meeting Mall | 185,000 | 413,559 | 598,559 | Strawbridge’s | 214,635 | 813,194 | AMC Theater Boscov’s Strawbridge’s | 12/31/18 10/31/16 N/A | ||||||||
Metroplex Shopping Center | 67,185 | 410,276 | 477,461 | Target Lowe’s | 300,729 | 778,190 | Target Lowe’s Giant | N/A N/A 2/28/21 | ||||||||
Viewmont Mall(2) | 386,262 | 236,975 | 623,237 | Kaufmann’s | 120,000 | 743,237 | JC Penney Sears Kauffmann’s | 10/31/10 12/31/10 N/A | ||||||||
Springfield Park I & II | 83,539 | 43,432 | 126,971 | Target | 145,669 | 272,640 | Target Bed, Bath & Beyond LA Fitness | N/A 1/31/09 3/31/17 | ||||||||
Nittany Mall(2) | 221,462 | 215,783 | 437,245 | Kaufmann’s | 95,000 | 532,245 | Bon-Ton JC Penney Kaufmann’s Sears | 1/31/08 7/31/10 N/A 8/31/10 | ||||||||
Uniontown Mall(2) | 421,378 | 277,173 | 698,551 | — | 698,551 | Bon-Ton JC Penney Roomful Express Furn. Sears Teletech Customer Care Value City | 1/31/11 10/31/10 3/26/10 2/25/08 6/28/08 7/31/07 | |||||||||
Creekview Shopping Center | — | 136,086 | 136,086 | Target Lowe’s | 288,916 | 425,002 | Target Lowe’s Genuardi’s | N/A N/A 12/31/21 |
PAGE 17B
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
PORTFOLIO SUMMARY—RETAIL
(Ordered by State)
Retail Properties (1) | City | State | Property Subtype | Management Status | Property Status | Ownership Interest | Date Acquired | Year Built/ Last Renovated | Years Since Renovation | ||||||||||
Washington Crown Center(2) | Washington | PA | Enclosed Mall | PREIT | Existing | 89 | % | 2003 | 1969/1999 | 6 | |||||||||
Wyoming Valley Mall(2) | Wilkes-Barre | PA | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1974/1995 | 10 | |||||||||
Willow Grove Park | Willow Grove | PA | Enclosed Mall | PREIT | Existing | 100 | % | 2000/2003 | 1982/2001 | 4 | |||||||||
Magnolia Mall | Florence | SC | Enclosed Mall | PREIT | Existing | 100 | % | 1997 | 1979/1992 | 12 | |||||||||
The Commons at Magnolia | Florence | SC | Strip Center | PREIT | Existing | 100 | % | 1999 | 1991/2002 | 3 | |||||||||
New River Valley Mall | Christiansburg | VA | Enclosed Mall | PREIT | Existing | 89 | % | 2003 | 1988 | 17 | |||||||||
Patrick Henry Mall | Newport News | VA | Enclosed Mall | PREIT | Existing | 89 | % | 2003 | 1988/2005 | 0 | |||||||||
Crossroads Mall | Beckley | WV | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1981 | 24 | |||||||||
Valley View Mall | La Crosse | WI | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1980/2001 | 4 | |||||||||
Properties Held For Sale | |||||||||||||||||||
Schuylkill Mall(2) | Frackville | PA | Enclosed Mall | PREIT | Existing | 100 | % | 2003 | 1980/1991 | 14 | |||||||||
TOTAL ASSETS HELD FOR SALE | |||||||||||||||||||
TOTAL CONTINUING PROPERTIES | |||||||||||||||||||
TOTAL WHOLLY OWNED | |||||||||||||||||||
TOTAL PARTNERSHIP | |||||||||||||||||||
TOTAL FOR Wholly Owned and Partnerships | |||||||||||||||||||
AVERAGE FOR Wholly Owned and Partnerships | 9.0 |
Retail Properties (1) | Owned GLA (anchors) | Owned GLA (non -anchors) | TOTAL Owned GLA | Space Not Owned (Name/GLA) | TOTAL Property GLA | Anchors / Majors Tenants | Lease Expiration | |||||||||
Washington Crown Center(2) | 245,401 | 288,175 | 533,576 | Kaufmann��s | 140,095 | 673,671 | Sears Bon-Ton Gander Kaufmann’s | 8/17/09 1/31/10 7/24/13 N/A | ||||||||
Wyoming Valley Mall(2) | 592,110 | 319,249 | 911,359 | — | 911,359 | Bon-Ton JC Penney Sears Kaufmann’s | 1/31/07 1/31/07 8/1/11 1/31/07 | |||||||||
Willow Grove Park | 225,000 | 336,558 | 561,558 | Sears Bloomingdale’s Strawbridge | 641,861 | 1,203,419 | Sears Bloomingdale’s Strawbridge’s Macy’s | N/A N/A N/A 1/31/22 | ||||||||
Magnolia Mall | 343,118 | 221,759 | 564,877 | — | 564,877 | Belk Best Buy JC Penney Sears | 1/31/11 1/31/13 3/31/07 10/16/09 | |||||||||
The Commons at Magnolia | 51,574 | 52,915 | 104,489 | Target | 126,200 | 230,689 | Goody’s Target | 5/31/12 N/A | ||||||||
New River Valley Mall | 240,306 | 187,849 | 428,155 | — | 428,155 | Belk JC Penney Sears | 4/19/08 3/31/08 8/2/08 | |||||||||
Patrick Henry Mall | 229,369 | 232,620 | 461,989 | Hecht’s | 140,000 | 601,989 | Dillard’s JC Penney Hecht’s | 4/30/08 10/31/15 N/A | ||||||||
Crossroads Mall | 256,248 | 192,363 | 448,611 | — | 448,611 | Sears JC Penney Belk | 3/31/11 12/31/11 11/4/08 | |||||||||
Valley View Mall | 96,357 | 235,313 | 331,670 | Herberger’s Marshall Fields Sears | 254,596 | 586,266 | JC Penney Herberger’s Marshall Fields Sears | 7/31/10 N/A N/A N/A | ||||||||
Properties Held For Sale | ||||||||||||||||
Schuylkill Mall(2) | 346,990 | 318,761 | 665,751 | Bon-Ton | 60,916 | 726,667 | K-Mart Sears Bon-Ton Black Diamond Antiques | 10/31/10 10/31/10 N/A 12/31/04 | ||||||||
TOTAL ASSETS HELD FOR SALE | 346,990 | 318,761 | 665,751 | — | 60,916 | 726,667 | ||||||||||
TOTAL CONTINUING PROPERTIES | 11,666,758 | 12,961,035 | 24,627,793 | — | 7,414,092 | 32,041,885 | ||||||||||
TOTAL WHOLLY OWNED | 11,179,558 | 11,586,944 | 22,766,502 | 6,209,411 | 28,975,913 | |||||||||||
TOTAL PARTNERSHIP | 834,190 | 1,692,852 | 2,527,042 | 1,265,597 | 3,792,639 | |||||||||||
TOTAL FOR Wholly Owned and Partnerships | 12,013,748 | 13,279,796 | 25,293,544 | 7,475,008 | 32,768,552 | |||||||||||
AVERAGE FOR Wholly Owned and Partnerships |
Summary of Properties for Wholly Owned and Partnership Properties
Enclosed Mall | PREIT Managed | Existing | Wholly owned | |||
37 | 45 | 47 | 44 | |||
Power Center | Third Party Managed | New | Joint Venture | |||
8 | 5 | 3 | 6 | |||
Strip Center | ||||||
5 | ||||||
50 | 50 | 50 | 50 |
Summary of Total Owned GLA for Wholly Owned and
Partnerships Properties
Enclosed Mall | PREIT Managed | Existing | Wholly Owned | Top 5 assets as a percentage of Total | ||||
21,786,545 | 22,893,473 | 23,239,404 | 22,766,502 | 17.5% | ||||
Power Center | Third Party Managed | New | Partnerships | Top asset as a percentage of Total Owned GLA: | ||||
2,909,468 | 2,400,071 | 2,054,140 | 2,527,042 | 3.7% | ||||
Strip Center | Redevelopment | |||||||
597,531 | — | |||||||
25,293,544 | 25,293,544 | 25,293,544 | 25,293,544 |
(1) | Does not include Westgate Anchor pad in Bethlehem, PA of 108,100 sf leased to Bon-Ton with expiration date of 11/23/2010 |
(2) | PREIT has an 89% ownership interest and a 99% economic interest in these properties. These properties are consolidated for financial reporting purposes. |
(3) | The Gallery at Market East I & The Gallery at Market East II were counted as one property. |
PAGE 17C
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
QUARTERLY ACTIVITY
Property Acquisitions/Dispositions Summary
Name of Project, Location | Square Feet/ Acres | Ownership Interest | Date or Expected Date Acquired, Completed, or Sold | Total Cost or Price | PREIT’s Cost or Price | Expected NOI Cap(1) | Major Tenants | |||||||||||||
Acquisitions: | ||||||||||||||||||||
Land at New River Valley, Christiansburg, VA | Acres | 16 | 100 | % | 3Q05 | $ | 4,100,000 | $ | 4,100,000 | N/A | ||||||||||
Acres | 16 | $ | 4,100,000 | $ | 4,100,000 | |||||||||||||||
TOTAL ACQUISITIONS | ||||||||||||||||||||
Pending Acquisitions: | ||||||||||||||||||||
Springfield Mall, Springfield, PA | Square Feet | 590,000 | 50 | % | 4Q05 | $ | 103,500,000 | $ | 51,750,000 | 7.1 | % | Macy’s, Strawbridge’s | ||||||||
TOTAL PENDING ACQUISITIONS | Square Feet | 590,000 | $ | 103,500,000 | $ | 51,750,000 | ||||||||||||||
Divestitures | ||||||||||||||||||||
Laurel Mall, Hazleton, Pennsylvania | Square Feet | 453,793 | 40 | % | 3Q05 | $ | 33,500,000 | $ | 13,400,000 | 10.0 | % | Boscov’s, K-Mart, JC Penney | ||||||||
Industrial Properties (ARA Services, Allentown, PA, ARA Services, Pennsauken, NJ, Interstate Container Corporation, Sears Pennsauken) | Square Feet | 254,791 | 100 | % | 3Q05 | 4,300,000 | 4,300,000 | N/A | ||||||||||||
TOTAL DIVESTITURES | Square Feet | 708,584 | $ | 37,800,000 | $ | 17,700,000 | ||||||||||||||
Pending Divestitures: | ||||||||||||||||||||
Schuylkill Mall, Frackville, Pennsylvania | Square Feet | 726,667 | 100 | % | N/A | N/A | N/A | N/A | Bon-Ton, K-Mart, Sears | |||||||||||
TOTAL PENDING DIVESTITURES | Square Feet | 726,667 | $ | — | $ | — |
(1) | Expected NOI Cap is defined as PREIT’s share of NOI in the year of stabilization divided by PREIT’s share of the investment, except in the case of partner buyout. |
PAGE 18
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Development Activity
NAME | LOCATION | TOTAL PROJECTED PROPERTY GLA (sq ft) (1) | PREIT’S SHARE | PREIT’s SHARE OF COST | PREIT’s SHARE OF INVEST- MENT TO DATE | EXPECTED STABILIZED NOI CAP | CONST START DATE | DATE OF INITIAL OCCUP- ANCY | EXPECTED DATE OF COMPL- ETION | % OF SPENDING COMP. | % LEASED | % OCCUPIED | DESCRIPTION | ||||||||||||||||||||
Power Center | |||||||||||||||||||||||||||||||||
Lacey(2) | Lacey Twp, NJ | 290,000 | 100 | % | $ | 27,800,000 | $ | 15,500,000 | 7.8 | % | 4Q05 | 4Q06 | 2Q07 | 56 | % | 46 | % | 0 | % | A retail shopping center will be built, anchored by Home Depot. There will also be at least two outparcels. | |||||||||||||
New Garden | New Garden Twp, PA | N/A | 100 | % | N/A | 6,200,000 | N/A | N/A | N/A | N/A | N/A | N/A | 0 | % | TBD | ||||||||||||||||||
The Plaza at Magnolia | Florence, SC | 240,000 | 100 | % | 11,500,000 | 4,300,000 | 11.0 | % | 1Q06 | 4Q06 | 3Q07 | 37 | % | 10 | % | 0 | % | Across the street from Magnolia Mall, a 240,000 sf power center will be added with four outparcel locations. | |||||||||||||||
New River Valley Retail Center | Christiansburg, VA | 150,000 | 100 | % | 23,500,000 | 4,400,000 | 9.5 | % | 4Q06 | 3Q07 | 1Q08 | 19 | % | 0 | % | 0 | % | A power center is planned adjacent to the existing New River Valley Mall. | |||||||||||||||
Land | |||||||||||||||||||||||||||||||||
Valley View Downs | South Beaver Twp, PA | 300,000 | N/A | 10,000,000 | 1,100,000 | (3 | ) | 2Q06 | 2Q08 | 2Q08 | 11 | % | N/A | 0 | % | Valley View Downs Racino | |||||||||||||||||
Pavilion at Market East(4) | Philadelphia, PA | N/A | 50 | % | N/A | 1,500,000 | N/A | N/A | N/A | N/A | N/A | N/A | 0 | % | TBD | ||||||||||||||||||
Total Development Activity | 980,000 | $ | 72,800,000 | $ | 33,000,000 | 9.0 | % |
(1) | GLA & total project cost include tenants that purchased their respective land; therefore, the % leased & occupied will also include these tenants. |
(2) | Home Depot is expected to open in 4Q06 with the balance of the Shopping Center to open during the 2Q07. |
(3) | On October 7, 2004, PREIT filed a Current Report on Form 8-K to report that it had entered into a binding memorandum of understanding with Valley View Downs, LP and Centaur Pennsylvania, LLC which contemplates that PREIT will manage the development of a harness racetrack and a casino accommodating up to 3,000 slot machines on an approximately 208 acre property located 35 miles northwest of Pittsburgh, Pennsylvania. Until three months following the commencement of Alternative Gaming operations at the Property (the “Payment Commencement Date”), rent will accrue at 10% per year on the aggregate payments made by PREIT to the Partnership. Beginning at the Payment Commencement Date, rental payments to PREIT will be $3 million per year for each of the first two years following the Payment Commencement Date, $4 million for the third year thereafter, $5 million for the fourth year thereafter, and for the remainder of the term of the Lease, as the term may be extended, $5 million per year, subject to annual adjustments for the fifth and subsequent years based upon increases in the consumer price index. A pro rata portion of the rent accrued prior to the Payment Commencement Date will be paid in monthly installments over the 117 months following the Payment Commencement Date. |
(4) | The Partnership’s original development plans for the Pavilion at Market East are under review. The Company retains a 50% interest in the partnership. |
Redevelopment Activity (1)
NAME | LOCATION | TOTAL PROJECTED PROPERTY GLA (sq ft) (1) | PREIT’S SHARE | PREIT’s SHARE OF COST | PREIT’s SHARE OF INVESTMENT TO DATE | EXPECTED STABILIZED NOI CAP | CONST START DATE | DATE OF INITIAL OCCUP - ANCY | EXPECTED DATE OF COMPL ETION | % OF SPENDING COMP. | DESCRIPTION | ||||||||||||||||
Enclosed Mall | |||||||||||||||||||||||||||
Capital City Mall | Camp Hill, PA | 640,000 | 100 | % | $ | 11,500,000 | $ | 5,200,000 | 10.8 | % | 1Q05 | 4Q05 | 2Q06 | 45 | % | The existing food court will be redeveloped into new specialty retail space; a new eight-bay food court and two family-themed restaurants will be added. | |||||||||||
Patrick Henry Mall | Newport News, VA | 710,000 | 100 | % | 26,600,000 | 12,300,000 | 10.0 | % | 1Q05 | 4Q05 | 3Q06 | 46 | % | Dillard’s Men’s store was merged with Dillard’s; Dick’s Sporting Goods, Borders and new mall shops will occupy the old Dillard’s Men’s store. | |||||||||||||
Cumberland Mall | Vineland, NJ | 950,000 | 100 | % | 5,400,000 | 2,100,000 | 10.6 | % | 2Q05 | 1Q06 | 1Q06 | 39 | % | A Best Buy will be added on land adjacent to the Cumberland Mall. | |||||||||||||
New River Valley Mall | Christiansburg, VA | 440,000 | 100 | % | 13,500,000 | 200,000 | 10.4 | % | 4Q05 | 1Q06 | 1Q07 | 1 | % | Regal Cinemas will be relocated and expanded into a free-standing 14 screen theater. Also, Red Robin restaurant and an in-line sporting goods store will be added at the mall. | |||||||||||||
Valley View Mall | LaCrosse, WI | 600,000 | 100 | % | 3,600,000 | 100,000 | 10.0 | % | 4Q05 | 4Q06 | 4Q06 | 3 | % | Barnes & Noble will be added to the mall in a 31,000 sf in-line location. | |||||||||||||
South Mall | Allentown, PA | 420,000 | 100 | % | 6,900,000 | 50,000 | 8.1 | % | 4Q05 | 4Q06 | 4Q07 | 1 | % | Ross Dress For Less will be added at the Stein Mart end of the center and Gold’s Gym will be expanded. A Starbucks drive- through concept will open on a pad location. | |||||||||||||
Francis Scott Key Mall | Frederick, MD | 720,000 | 100 | % | 3,500,000 | 100,000 | 8.5 | % | 1Q06 | 4Q06 | 4Q06 | 3 | % | A 27,000 sf Barnes & Noble will be added. | |||||||||||||
Lycoming Mall | Pennsdale, PA | 810,000 | 100 | % | 11,800,000 | 1,900,000 | 11.0 | % | 1Q06 | 2Q06 | 4Q06 | 16 | % | Dick’s Sporting Goods and Borders will occupy in-line space; Applebees and Best Buy will open outparcel locations. A cosmetic renovation is also planned. | |||||||||||||
Cherry Hill Mall | Cherry Hill, NJ | 1,400,000 | 100 | % | 40,000,000 | 600,000 | 8.5 | % | 2Q06 | 1Q07 | 4Q07 | 2 | % | PREIT will add Bistro Row and new leaseable area. | |||||||||||||
Plymouth Meeting Mall | Plymouth Meeting, PA | 1,100,000 | 100 | % | 53,400,000 | 18,100,000 | 9.5 | % | 4Q06 | 4Q07 | 4Q08 | 34 | % | A 200,000 sf lifestyle addition will include a 70,000 sf Whole Foods market and 6 themed restaurants. | |||||||||||||
Mixed Use | |||||||||||||||||||||||||||
Echelon Mall (2) | Voorhees, NJ | TBD | TBD | TBD | 2,300,000 | TBD | TBD | TBD | TBD | TBD | A proposed plan is to rename the mall Voorhees Town Center. A portion of the existing Echelon Mall will convert into 200,000 sf of lifestyle retail space. Also, 450 condominium and apartment units will be added. | ||||||||||||||||
Total Redevelopment Activity | 7,790,000 | $ | 176,200,000 | $ | 42,950,000 | 9.6 | % |
(1) | GLA and total project cost include tenants that purchased their respective land, net of reimbursements from Partnerships. |
(2) | For more information see PREIT’s press release from 9/14/05. |
PAGE 19
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Top Twenty Tenants (by share of PREIT’s Annualized Base Rent)
Number of Stores | GLA of Stores | |||||||||||||||||||||
Tenant | Fixed Rent | Percentage Rent In Lieu of Fixed Rent or Common Area Costs (1) | Total | Fixed Rent | Percentage Rent In Lieu of Fixed Rent or Common Area Costs (1) | Total | Annualized Base Rent | PREIT’s share of Annualized Base Rent(2) | Percent of PREIT’s Total Retail Base Rent | |||||||||||||
Gap, Inc. | 56 | 3 | 59 | 697,811 | 24,606 | 722,417 | $ | 14,060,351 | $ | 13,241,041 | 4.61 | % | ||||||||||
Limited Brands, Inc. | 80 | 19 | 99 | 482,253 | 90,262 | 572,515 | 11,443,104 | 10,960,223 | 3.81 | % | ||||||||||||
Foot Locker, Inc. | 74 | 3 | 77 | 398,353 | 6,732 | 405,085 | 7,618,075 | 7,333,739 | 2.55 | % | ||||||||||||
JC Penney Company, Inc. | 23 | 5 | 28 | 2,295,459 | 569,422 | 2,864,881 | 7,099,316 | 7,099,316 | 2.47 | % | ||||||||||||
Sears Holding Corporation | 28 | 3 | 31 | 3,020,908 | 412,236 | 3,433,144 | 6,474,534 | 6,330,789 | 2.20 | % | ||||||||||||
Zales Corporation | 87 | — | 87 | 72,323 | — | 72,323 | 5,538,971 | 5,354,596 | 1.86 | % | ||||||||||||
Luxottica Group S.p.A. | 84 | 2 | 86 | 143,042 | 740 | 143,782 | 4,941,936 | 4,688,356 | 1.63 | % | ||||||||||||
Hallmark Cards, Inc. | 55 | 2 | 57 | 198,012 | 8,482 | 206,494 | 4,459,889 | 4,419,889 | 1.54 | % | ||||||||||||
Sterling Jewelers, Inc. | 44 | — | 44 | 61,796 | — | 61,796 | 4,328,436 | 4,140,936 | 1.44 | % | ||||||||||||
American Eagle Outfitters, Inc. | 31 | 2 | 33 | 157,205 | 8,813 | 166,018 | 3,936,974 | 3,795,974 | 1.32 | % | ||||||||||||
Borders Group Inc. | 31 | 1 | 32 | 178,646 | 3,725 | 182,371 | 3,555,732 | 3,362,593 | 1.17 | % | ||||||||||||
Transworld Entertainment Corp. | 31 | — | 31 | 155,465 | — | 155,465 | 3,362,846 | 3,275,968 | 1.14 | % | ||||||||||||
Regis Corporation | 90 | — | 90 | 107,233 | — | 107,233 | 3,170,800 | 3,106,508 | 1.08 | % | ||||||||||||
The Finish Line, Inc. | 29 | 1 | 30 | 141,498 | 5,960 | 147,458 | 3,018,986 | 3,018,986 | 1.05 | % | ||||||||||||
The Bon-Ton Dept. Stores, Inc. | 15 | 1 | 16 | 1,077,982 | 60,916 | 1,138,898 | 2,973,869 | 2,973,869 | 1.03 | % | ||||||||||||
Charming Shoppes, Inc. | 27 | 1 | 28 | 168,575 | 5,204 | 173,779 | 2,701,210 | 2,606,009 | 0.91 | % | ||||||||||||
Federated Dept. Stores, Inc. | 19 | 22 | 41 | 987,647 | 3,772,794 | 4,760,441 | 2,704,342 | 2,530,899 | 0.88 | % | ||||||||||||
Shoe Show, Inc. | 32 | — | 32 | 155,212 | — | 155,212 | 2,570,988 | 2,528,575 | 0.88 | % | ||||||||||||
Aeropostale, Inc. | 31 | — | 31 | 105,727 | — | 105,727 | 2,638,575 | 2,528,025 | 0.88 | % | ||||||||||||
Boscov’s Department Store | 5 | 2 | 7 | 952,110 | 333,341 | 1,285,451 | 2,411,482 | 2,411,482 | 0.84 | % | ||||||||||||
Total Top 20 Tenants | 872 | 67 | 939 | 11,557,257 | 5,303,233 | 16,860,490 | 99,010,416 | 95,707,773 | 33.29 | % | ||||||||||||
Total Retail Leased | 3,400 | 23,412,598 | $ | 290,949,141 | $ | 287,477,672 | (3) | 100.00 | % | |||||||||||||
(1) | Income from lease(s) in which tenant pays percentage rent in lieu of fixed rent or common area costs are not included in annualized base rent. |
(2) | Includes PREIT’s proportionate share of tenant rents from partnership properties based on PREIT’s ownership percentage in the respective partnerships. |
(3) | PREIT’s share of annualized base rent is derived by annualizing 3rd quarter base rent. Straight line rent is not included in the base rent figures. |
PAGE 20
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Retail Lease Expiration Schedule - Anchors(1)
Year | Leases | Gross Leasable Area | Annualized Base Rent | ||||||||||||||||
Lease Expiration Year | Number of Leases Expiring | Expiring GLA | Percent of Total | Rent in Expiring Year | PREIT’s Share of Rent in Expiring Year(3) | Percent of Total (PREIT’s Share) | Average Expiring Base Rent psf | ||||||||||||
Prior(2) | 1 | 85,483 | 0.72 | % | $ | 188,400 | $ | 188,400 | 0.52 | % | $ | 2.20 | |||||||
2005 | 1 | 20,425 | 0.17 | % | 265,525 | 265,525 | 0.74 | % | 13.00 | ||||||||||
2006 | 7 | 417,442 | 3.53 | % | 1,159,293 | 1,159,293 | 3.21 | % | 2.78 | ||||||||||
2007 | 9 | 822,331 | 6.96 | % | 2,052,026 | 2,042,126 | 5.66 | % | 2.50 | ||||||||||
2008 | 17 | 1,226,147 | 10.37 | % | 3,453,986 | 3,453,986 | 9.57 | % | 2.82 | ||||||||||
2009 | 12 | 929,598 | 7.86 | % | 2,713,570 | 2,321,570 | 6.43 | % | 2.92 | ||||||||||
2010 | 22 | 2,089,444 | 17.68 | % | 6,144,328 | 6,144,328 | 17.03 | % | 2.94 | ||||||||||
2011 | 19 | 1,537,477 | 13.01 | % | 5,507,071 | 4,384,256 | 12.15 | % | 3.58 | ||||||||||
2012 | 3 | 302,710 | 2.56 | % | 512,783 | 475,902 | 1.32 | % | 1.69 | ||||||||||
2013 | 6 | 453,533 | 3.84 | % | 2,728,654 | 2,728,654 | 7.56 | % | 6.02 | ||||||||||
2014 | 6 | 662,582 | 5.61 | % | 2,081,285 | 2,081,285 | 5.77 | % | 3.14 | ||||||||||
2015 | 1 | 85,212 | 0.72 | % | 468,666 | 468,666 | 1.30 | % | 5.50 | ||||||||||
Thereafter | 24 | 3,188,404 | 26.97 | % | 11,667,413 | 10,369,546 | 28.74 | % | 3.66 | ||||||||||
Totals: | 128 | 11,820,788 | 100 | % | $ | 38,943,000 | $ | 36,083,537 | 100 | % | $ | 3.29 | |||||||
(1) | Includes only Owned Anchor space. |
(2) | Includes all tenant leases which have already expired and are on a month-to-month basis. |
(3) | Includes PREIT’s proportionate share of tenant rents from partnerships properties based on PREIT’s ownership percentage in the respective partnerships. |
PAGE 21
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Retail Lease Expiration Schedule - Non-Anchors(1)
Year | Leases | Gross Leasable Area | Annualized Base Rent | ||||||||||||||||
Lease Expiration Year | Number of Leases Expiring | Expiring GLA | Percent of Total | Rent in Expiring Year | PREIT’s Share of Rent in Expiring Year(3) | Percent of Total (PREIT’s Share) | Average Expiring Base Rent psf | ||||||||||||
Prior (2) | 188 | 417,235 | 3.60 | % | $ | 10,245,676 | $ | 9,893,036 | 3.98 | % | $ | 24.56 | |||||||
2005 | 100 | 194,734 | 1.68 | % | 4,942,031 | 4,771,907 | 1.92 | % | 25.38 | ||||||||||
2006 | 457 | 1,269,555 | 10.95 | % | 27,661,699 | 26,167,181 | 10.54 | % | 21.79 | ||||||||||
2007 | 444 | 1,243,839 | 10.73 | % | 27,186,440 | 26,087,799 | 10.51 | % | 21.86 | ||||||||||
2008 | 374 | 1,125,567 | 9.71 | % | 26,882,622 | 26,086,990 | 10.50 | % | 23.88 | ||||||||||
2009 | 381 | 1,056,927 | 9.12 | % | 26,242,990 | 25,622,055 | 10.32 | % | 24.83 | ||||||||||
2010 | 364 | 1,345,619 | 11.61 | % | 30,493,465 | 29,514,563 | 11.89 | % | 22.66 | ||||||||||
2011 | 252 | 1,189,579 | 10.26 | % | 27,140,920 | 24,049,251 | 9.68 | % | 22.82 | ||||||||||
2012 | 209 | 887,788 | 7.66 | % | 21,988,235 | 20,212,869 | 8.14 | % | 24.77 | ||||||||||
2013 | 167 | 574,269 | 4.95 | % | 14,784,171 | 13,914,232 | 5.60 | % | 25.74 | ||||||||||
2014 | 146 | 548,322 | 4.73 | % | 14,272,125 | 12,493,904 | 5.03 | % | 26.03 | ||||||||||
2015 | 109 | 562,710 | 4.85 | % | 13,988,533 | 12,195,451 | 4.91 | % | 24.86 | ||||||||||
Thereafter | 81 | 1,175,666 | 10.14 | % | 19,054,143 | 17,323,657 | 6.98 | % | 16.21 | ||||||||||
Totals: | 3,272 | 11,591,810 | 100 | % | $ | 264,883,050 | $ | 248,332,895 | 100 | % | $ | 22.85 | |||||||
(1) | Includes only Owned Non-Anchor space. |
(2) | Includes all tenant leases which have already expired and are on a month-to-month basis. |
(3) | Includes PREIT’s proportionate share of tenant rents from partnerships properties based on PREIT’s ownership percentage in the respective partnerships. |
PAGE 22
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Leasing Activity Summary
Number | GLA | Average Previous Base Rent psf | Average New Base Rent psf | Increase/ Decrease in Base Rent psf | Annualized Tenant Improvements psf (1) | Annualized Leasing Commissions psf (1)(2) | TOTAL Annualized Costs of Leasing psf (1)(2) | |||||||||||||||
Previously Leased Space: | ||||||||||||||||||||||
1st Quarter | 17 | 78,456 | $ | 26.14 | $ | 28.40 | $ | 2.26 | $ | 5.02 | $ | — | $ | 5.02 | ||||||||
2nd Quarter | 24 | 82,653 | 26.05 | 29.58 | 3.53 | 3.32 | — | 3.32 | ||||||||||||||
3rd Quarter(3) | 71 | 124,764 | 31.73 | 36.89 | 5.16 | 2.17 | — | 2.17 | ||||||||||||||
4th Quarter | — | — | — | |||||||||||||||||||
Total or Average | 112 | 285,873 | $ | 28.55 | $ | 32.45 | $ | 3.89 | $ | 3.28 | $ | — | $ | 3.28 | ||||||||
Previously Vacant Space: | ||||||||||||||||||||||
1st Quarter | 19 | 42,134 | $ | — | $ | 29.51 | $ | 29.51 | $ | 3.42 | $ | — | $ | 3.42 | ||||||||
2nd Quarter | 25 | 138,153 | — | 16.62 | 16.62 | 2.56 | — | 2.56 | ||||||||||||||
3rd Quarter(3) | 51 | 204,737 | — | 19.26 | 19.26 | 0.79 | — | 0.79 | ||||||||||||||
4th Quarter | — | — | ||||||||||||||||||||
Total or Average | 95 | 385,024 | — | $ | 19.43 | $ | 19.43 | $ | 1.71 | $ | — | $ | 1.71 | |||||||||
Renewal (4) | ||||||||||||||||||||||
1st Quarter(5) | 81 | 765,662 | $ | 7.82 | $ | 8.17 | $ | 0.35 | $ | — | $ | — | $ | — | ||||||||
2nd Quarter(6) | 97 | 971,952 | 8.04 | 8.18 | 0.14 | 0.03 | 0.03 | |||||||||||||||
3rd Quarter(7) | 93 | 521,100 | 10.55 | 11.05 | 0.50 | 0.02 | 0.02 | |||||||||||||||
4th Quarter | — | — | ||||||||||||||||||||
Total or Average | 271 | 2,258,714 | $ | 8.54 | $ | 8.84 | $ | 0.29 | $ | 0.02 | $ | — | $ | 0.02 | ||||||||
(1) | These leasing costs are presented as annualized costs per square foot and are spread uniformly over the life of the lease. |
(2) | External commissions only. |
(3) | Previously leased space includes 32 leases for ATMs. Excluding these leases, previously leased space would have been 39 leases with 124,476 square feet for an average new base rent per square foot of $26.00, an increase of $4.37 per square foot. Previously vacant space includes 12 leases for ATMs. Excluding these leases, previously vacant space would have been 39 leases with 204,629 square feet for an average new base rent psf of $17.43. |
(4) | This category includes expansions, relocations, lease extensions and modifications. |
(5) | Includes eight anchor leases for 561,135 square feet for an average base rent of $3.29 per square foot. Also includes 73 renewal leases for 204,527 square feet with an average new base rent psf of $21.57, representing an increase of $1.30 in base rent psf. |
(6) | Includes six anchor leases for 630,896 square feet for an average base rent of $2.10 per square foot. Also includes 91 renewal leases for 341,056 square feet with an average new base rent psf of $19.41, representing an increase of $0.42 in base rent psf. |
(7) | Includes three anchor leases for 308,613 square feet for an average base rent of $3.07 per square foot. Also includes 90 renewal leases for 212,487 square feet with an average new base rent psf of $22.64, representing an increase of $1.24 in base rent psf. |
PAGE 23
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Capital Expenditures
Q3 05 (3 months ended September 30, 2005) | |||||||||
Retail | Wholly Owned | Partnerships | Total | ||||||
New development projects | $ | 8,139,000 | $ | — | $ | 8,139,000 | |||
Redevelopment projects with incremental GLA and/or Anchor Replacement | 15,049,000 | — | 15,049,000 | ||||||
Renovation with no incremental GLA | 1,326,000 | — | 1,326,000 | ||||||
Tenant allowances | 3,365,000 | 774,000 | 4,139,000 | ||||||
Operational capital expenditures at properties: | — | ||||||||
CAM expenditures | 2,982,000 | — | 2,982,000 | ||||||
Non-CAM expenditures | 943,000 | 139,000 | 1,082,000 | ||||||
Subtotal operational capital expenditures at properties | $ | 3,925,000 | $ | 139,000 | $ | 4,064,000 | |||
Total | $ | 31,804,000 | $ | 913,000 | $ | 32,717,000 | |||
PAGE 24
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Enclosed Malls
(Includes Only Owned Space)
Q305 | Change in % Occupancy | Q304 | ||||||||||||||||||||||||||||||||||
Total w/Anchor % Leased | Total w/Anchor % Available | In-Line only (Non- Anchor) % Leased | In-Line (Non- Anchor) % Available | Total w/Anchor % Leased | Total w/Anchor % Available | In-Line only (Non- Anchor) % Leased | In-Line (Non- Anchor) % Available | Total w/Anchor % Leased | Total w/Anchor % Available | In-Line only (Non- Anchor) % Leased | In-Line (Non- Anchor) % Available | |||||||||||||||||||||||||
Beaver Valley Mall | 90.7 | % | 9.3 | % | 79.8 | % | 20.2 | % | 1.6 | % | -1.6 | % | 3.2 | % | -3.2 | % | 89.1 | % | 10.9 | % | 76.7 | % | 23.3 | % | ||||||||||||
Capital City | 95.8 | % | 4.2 | % | 92.4 | % | 7.6 | % | -2.6 | % | 2.6 | % | -4.8 | % | 4.8 | % | 98.4 | % | 1.6 | % | 97.2 | % | 2.8 | % | ||||||||||||
Chambersburg Mall | 91.1 | % | 8.9 | % | 80.9 | % | 19.1 | % | -2.6 | % | 2.6 | % | -5.5 | % | 5.5 | % | 93.6 | % | 6.4 | % | 86.3 | % | 13.7 | % | ||||||||||||
Cherry Hill Mall | 95.0 | % | 5.0 | % | 95.0 | % | 5.0 | % | 3.6 | % | -3.6 | % | 3.6 | % | -3.6 | % | 91.4 | % | 8.6 | % | 91.4 | % | 8.6 | % | ||||||||||||
Crossroads Mall | 96.2 | % | 3.8 | % | 91.0 | % | 9.0 | % | 1.0 | % | -1.0 | % | 2.2 | % | -2.2 | % | 95.2 | % | 4.8 | % | 88.8 | % | 11.2 | % | ||||||||||||
Cumberland Mall | 98.8 | % | 1.2 | % | 97.8 | % | 2.2 | % | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Dartmouth Mall | 95.9 | % | 4.1 | % | 93.2 | % | 6.8 | % | 1.1 | % | -1.1 | % | 1.9 | % | -1.9 | % | 94.8 | % | 5.2 | % | 91.3 | % | 8.7 | % | ||||||||||||
Echelon Mall | 32.0 | % | 68.0 | % | 53.0 | % | 47.0 | % | -5.2 | % | 5.2 | % | -10.9 | % | 10.9 | % | 37.2 | % | 62.8 | % | 63.9 | % | 36.1 | % | ||||||||||||
Exton Square Mall | 92.1 | % | 7.9 | % | 82.8 | % | 17.2 | % | -0.9 | % | 0.9 | % | -2.0 | % | 2.0 | % | 93.0 | % | 7.0 | % | 84.8 | % | 15.2 | % | ||||||||||||
Francis Scott Key Mall | 94.8 | % | 5.2 | % | 89.2 | % | 10.8 | % | -1.8 | % | 1.8 | % | -3.6 | % | 3.6 | % | 96.5 | % | 3.5 | % | 92.9 | % | 7.1 | % | ||||||||||||
Gadsden Mall | 95.0 | % | 5.0 | % | 88.2 | % | 11.8 | % | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Jacksonville Mall | 97.3 | % | 2.7 | % | 94.5 | % | 5.5 | % | -0.5 | % | 0.5 | % | -1.0 | % | 1.0 | % | 97.8 | % | 2.2 | % | 95.5 | % | 4.5 | % | ||||||||||||
Lehigh Valley Mall | 95.3 | % | 4.7 | % | 93.2 | % | 6.8 | % | 5.9 | % | -5.9 | % | 8.6 | % | -8.6 | % | 89.4 | % | 10.6 | % | 84.6 | % | 15.4 | % | ||||||||||||
Logan Valley Mall | 96.5 | % | 3.5 | % | 91.8 | % | 8.2 | % | -0.6 | % | 0.6 | % | -1.5 | % | 1.5 | % | 97.2 | % | 2.8 | % | 93.3 | % | 6.7 | % | ||||||||||||
Lycoming Mall | 89.1 | % | 10.9 | % | 78.9 | % | 21.1 | % | -0.6 | % | 0.6 | % | -1.2 | % | 1.2 | % | 89.7 | % | 10.3 | % | 80.0 | % | 20.0 | % | ||||||||||||
Magnolia Mall | 94.8 | % | 5.2 | % | 86.6 | % | 13.4 | % | 1.4 | % | -1.4 | % | 3.6 | % | -3.6 | % | 93.4 | % | 6.6 | % | 83.1 | % | 16.9 | % | ||||||||||||
Moorestown Mall | 92.8 | % | 7.2 | % | 83.4 | % | 16.6 | % | -1.7 | % | 1.7 | % | -4.1 | % | 4.1 | % | 94.5 | % | 5.5 | % | 87.5 | % | 12.5 | % | ||||||||||||
New River Valley Mall | 78.2 | % | 21.8 | % | 85.0 | % | 15.0 | % | 0.7 | % | -0.7 | % | 1.7 | % | -1.7 | % | 77.5 | % | 22.5 | % | 83.3 | % | 16.7 | % | ||||||||||||
Nittany Mall | 93.2 | % | 6.8 | % | 86.2 | % | 13.8 | % | -1.6 | % | 1.6 | % | -3.2 | % | 3.2 | % | 94.8 | % | 5.2 | % | 89.5 | % | 10.5 | % | ||||||||||||
North Hanover Mall | 92.4 | % | 7.6 | % | 79.1 | % | 20.9 | % | -0.8 | % | 0.8 | % | -2.3 | % | 2.3 | % | 93.2 | % | 6.8 | % | 81.4 | % | 18.6 | % | ||||||||||||
Orlando Fashion Square | 90.2 | % | 9.8 | % | 79.1 | % | 20.9 | % | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Palmer Park Mall | 99.8 | % | 0.2 | % | 99.5 | % | 0.5 | % | 0.7 | % | -0.7 | % | 2.3 | % | -2.3 | % | 99.2 | % | 0.8 | % | 97.2 | % | 2.8 | % | ||||||||||||
Patrick Henry Mall | 96.2 | % | 3.8 | % | 92.5 | % | 7.5 | % | -3.1 | % | 3.1 | % | -6.0 | % | 6.0 | % | 99.3 | % | 0.7 | % | 98.5 | % | 1.5 | % | ||||||||||||
Phillipsburg Mall | 91.8 | % | 8.2 | % | 81.1 | % | 18.9 | % | 1.2 | % | -1.2 | % | 3.0 | % | -3.0 | % | 90.6 | % | 9.4 | % | 78.1 | % | 21.9 | % | ||||||||||||
Plymouth Meeting | 90.0 | % | 10.0 | % | 85.6 | % | 14.4 | % | 2.8 | % | 2.8 | % | -4.0 | % | 4.0 | % | 92.8 | % | 7.2 | % | 89.6 | % | 10.4 | % | ||||||||||||
Schuylkill Mall | 74.3 | % | 25.7 | % | 64.7 | % | 35.3 | % | -2.1 | % | 2.1 | % | -4.5 | % | 4.5 | % | 76.5 | % | 23.5 | % | 69.2 | % | 30.8 | % | ||||||||||||
South Mall | 92.2 | % | 7.8 | % | 85.3 | % | 14.7 | % | -4.6 | % | 4.6 | % | -8.7 | % | 8.7 | % | 96.8 | % | 3.2 | % | 94.0 | % | 6.0 | % | ||||||||||||
The Gallery at Market East I | 89.8 | % | 10.2 | % | 89.8 | % | 10.2 | % | -4.6 | % | 4.6 | % | -4.6 | % | 4.6 | % | 94.4 | % | 5.6 | % | 94.4 | % | 5.6 | % | ||||||||||||
The Gallery at Market East II | 77.3 | % | 22.7 | % | 63.3 | % | 36.7 | % | -4.2 | % | 4.2 | % | -6.9 | % | 6.9 | % | 81.6 | % | 18.4 | % | 70.2 | % | 29.8 | % | ||||||||||||
The Mall at Prince Georges | 97.2 | % | 2.8 | % | 93.4 | % | 6.6 | % | 11.0 | % | -11.0 | % | 6.0 | % | -6.0 | % | 86.2 | % | 13.8 | % | 87.3 | % | 12.7 | % | ||||||||||||
Uniontown Mall | 95.2 | % | 4.8 | % | 87.9 | % | 12.1 | % | -0.5 | % | 0.5 | % | -1.3 | % | 1.3 | % | 95.7 | % | 4.3 | % | 89.2 | % | 10.8 | % | ||||||||||||
Valley Mall | 99.1 | % | 0.9 | % | 98.4 | % | 1.6 | % | -0.1 | % | 0.1 | % | -0.1 | % | 0.1 | % | 99.2 | % | 0.8 | % | 98.5 | % | 1.5 | % | ||||||||||||
Valley View Mall | 92.0 | % | 8.0 | % | 88.7 | % | 11.3 | % | -1.9 | % | 1.9 | % | -2.7 | % | 2.7 | % | 93.9 | % | 6.1 | % | 91.4 | % | 8.6 | % | ||||||||||||
Viewmont Mall | 99.3 | % | 0.7 | % | 98.3 | % | 1.7 | % | 0.3 | % | -0.3 | % | 0.9 | % | -0.9 | % | 99.0 | % | 1.0 | % | 97.4 | % | 2.6 | % | ||||||||||||
Washington Crown Center | 91.8 | % | 8.2 | % | 84.9 | % | 15.1 | % | -1.9 | % | 1.9 | % | -3.4 | % | 3.4 | % | 93.7 | % | 6.3 | % | 88.3 | % | 11.7 | % | ||||||||||||
Willow Grove Park | 93.6 | % | 6.4 | % | 89.3 | % | 10.7 | % | -0.5 | % | 0.5 | % | -0.8 | % | 0.8 | % | 94.1 | % | 5.9 | % | 90.2 | % | 9.8 | % | ||||||||||||
Wiregrass Mall | 83.8 | % | 16.2 | % | 83.8 | % | 16.2 | % | 0.3 | % | -0.3 | % | 0.3 | % | -0.3 | % | 83.4 | % | 16.6 | % | 83.4 | % | 16.6 | % | ||||||||||||
Wyoming Valley Mall | 96.0 | % | 4.0 | % | 88.7 | % | 11.3 | % | -1.3 | % | 1.3 | % | -3.8 | % | 3.8 | % | 97.4 | % | 2.6 | % | 92.5 | % | 7.5 | % | ||||||||||||
Enclosed Malls weighted average | 90.9 | % | 9.1 | % | 85.9 | % | 14.1 | % | 0.1 | % | -0.1 | % | -1.0 | % | 1.0 | % | 90.8 | % | 9.2 | % | 86.9 | % | 13.1 | % | ||||||||||||
Wholly Owned Properties | 90.8 | % | 9.2 | % | 85.6 | % | 14.4 | % | 0.0 | % | 0.0 | % | -1.4 | % | 1.4 | % | 90.8 | % | 9.2 | % | 87.0 | % | 13.0 | % | ||||||||||||
Partnership Properties | 95.3 | % | 4.7 | % | 93.2 | % | 6.8 | % | 5.9 | % | -5.9 | % | 8.6 | % | -8.6 | % | 89.4 | % | 10.6 | % | 84.6 | % | 15.4 | % | ||||||||||||
PRI-managed | 90.8 | % | 9.2 | % | 85.6 | % | 14.4 | % | 0.0 | % | 0.0 | % | -1.4 | % | 1.4 | % | 90.8 | % | 9.2 | % | 87.0 | % | 13.0 | % | ||||||||||||
Non PRI-managed | 95.3 | % | 4.7 | % | 93.2 | % | 6.8 | % | 5.9 | % | -5.9 | % | 8.6 | % | -8.6 | % | 89.4 | % | 10.6 | % | 84.6 | % | 15.4 | % | ||||||||||||
Same Properties/Existing | 90.6 | % | 9.4 | % | 85.8 | % | 14.2 | % | -0.2 | % | 0.2 | % | -1.2 | % | 1.2 | % | 90.8 | % | 9.2 | % | 86.9 | % | 13.1 | % | ||||||||||||
New | 94.0 | % | 6.0 | % | 87.8 | % | 12.2 | % | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Continuing Operations | 91.4 | % | 8.6 | % | 86.6 | % | 13.4 | % | 0.2 | % | -0.2 | % | -0.9 | % | 0.9 | % | 91.3 | % | 8.7 | % | 87.5 | % | 12.5 | % | ||||||||||||
Discontinued Operations | 74.3 | % | 25.7 | % | 64.7 | % | 35.3 | % | -2.1 | % | 2.1 | % | -4.5 | % | 4.5 | % | 76.5 | % | 23.5 | % | 69.2 | % | 30.8 | % | ||||||||||||
PAGE 25
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Enclosed Malls
(Includes Non- Anchor Owned Space)
% of Current Quarter Mall NOI | Q305 | % Change | Q304 | |||||||||||||||||||||||||||||||||||||||||||||
Avg Base Rent psf (1) | Avg % Rent psf (1) | Additional Charges | Avg Comp Sales psf | Occup. Cost Ratio | Avg Base Rent psf | Avg % Rent psf | Additional Charges psf | Avg Comp Sales psf | Occup. Cost Ratio | Avg Base Rent psf (1) | Avg % Rent psf (1) | Additional Charges psf | Avg Comp Sales psf | Occup. Cost Ratio | ||||||||||||||||||||||||||||||||||
Sales per square foot above $400 | ||||||||||||||||||||||||||||||||||||||||||||||||
Lehigh Valley Mall | $ | 29.72 | $ | 0.35 | $ | 10.91 | $ | 470 | 8.72 | % | -6.6 | % | -44.3 | % | 6.4 | % | 11.1 | % | -1.4 | % | $ | 31.82 | $ | 0.64 | $ | 10.26 | $ | 423 | 10.10 | % | ||||||||||||||||||
Patrick Henry Mall | 32.21 | 2.38 | 13.73 | 457 | 10.57 | % | 3.2 | % | 35.2 | % | 35.9 | % | 4.1 | % | 0.8 | % | 31.22 | 1.76 | 10.10 | 439 | 9.81 | % | ||||||||||||||||||||||||||
Cherry Hill Mall | 36.20 | 1.37 | 19.06 | 439 | 12.90 | % | 0.8 | % | 42.1 | % | 3.8 | % | 3.1 | % | -0.1 | % | 35.93 | 0.96 | 18.37 | 426 | 12.97 | % | ||||||||||||||||||||||||||
The Gallery at Market East II | 30.19 | 1.72 | 6.49 | 435 | 8.83 | % | -11.1 | % | 134.2 | % | 75.5 | % | 4.3 | % | -0.4 | % | 33.97 | 0.74 | 3.70 | 417 | 9.21 | % | ||||||||||||||||||||||||||
Willow Grove Park | 38.87 | 0.19 | 20.78 | 419 | 14.28 | % | 2.1 | % | -38.2 | % | 7.4 | % | 1.9 | % | 0.2 | % | 38.09 | 0.30 | 19.35 | 411 | 14.05 | % | ||||||||||||||||||||||||||
Weighted Average | 22.1 | % | $ | 33.89 | $ | 1.03 | $ | 15.38 | $ | 444 | 11.33 | % | -1.6 | % | 21.9 | % | 10.5 | % | 4.8 | % | -0.3 | % | $ | 34.44 | $ | 0.85 | $ | 13.92 | $ | 423 | 11.62 | % | ||||||||||||||||
Sales per square foot between $350 - $400 | ||||||||||||||||||||||||||||||||||||||||||||||||
Dartmouth Mall | $ | 19.90 | $ | 1.40 | $ | 7.18 | $ | 393 | 7.25 | % | -0.4 | % | -0.5 | % | -7.1 | % | -1.3 | % | -0.1 | % | $ | 19.98 | $ | 1.41 | $ | 7.73 | $ | 398 | 7.32 | % | ||||||||||||||||||
Moorestown Mall | 25.54 | 0.96 | 15.12 | 393 | 10.59 | % | 6.2 | % | 24.8 | % | 7.7 | % | 5.1 | % | 0.2 | % | 24.06 | 0.77 | 14.04 | 374 | 10.39 | % | ||||||||||||||||||||||||||
The Mall at Prince Georges | 25.70 | 1.75 | 13.77 | 387 | 10.65 | % | 2.8 | % | 30.6 | % | -0.8 | % | 5.7 | % | -0.3 | % | 24.99 | 1.34 | 13.89 | 366 | 10.99 | % | ||||||||||||||||||||||||||
Jacksonville Mall | 23.51 | 1.49 | 5.65 | 384 | 7.98 | % | 7.3 | % | 6.3 | % | -12.1 | % | 7.6 | % | -0.3 | % | 21.91 | 1.40 | 6.43 | 357 | 8.33 | % | ||||||||||||||||||||||||||
Exton Square Mall | 33.55 | 0.54 | 15.98 | 359 | 13.95 | % | -4.9 | % | -21.8 | % | 7.0 | % | -4.3 | % | 0.4 | % | 35.26 | 0.70 | 14.93 | 375 | 13.57 | % | ||||||||||||||||||||||||||
Weighted Average | 17.8 | % | $ | 25.80 | $ | 1.23 | $ | 11.85 | $ | 381 | 10.20 | % | 0.9 | % | 11.2 | % | 1.1 | % | 2.0 | % | -0.1 | % | $ | 25.58 | $ | 1.11 | $ | 11.72 | $ | 374 | 10.28 | % | ||||||||||||||||
Sales per square foot between $300 - $350 | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital City Mall | $ | 23.32 | $ | 1.19 | $ | 7.49 | $ | 348 | 9.20 | % | 4.4 | % | 34.6 | % | 16.4 | % | 0.9 | % | 0.6 | % | $ | 22.34 | $ | 0.88 | $ | 6.43 | $ | 345 | 8.59 | % | ||||||||||||||||||
The Gallery at Market East I | 33.89 | 0.43 | 8.22 | 339 | 12.55 | % | 1.4 | % | -17.8 | % | -17.0 | % | -0.6 | % | -0.3 | % | 33.44 | 0.52 | 9.90 | 341 | 12.86 | % | ||||||||||||||||||||||||||
Wyoming Valley Mall | 22.98 | 0.54 | 7.85 | 332 | 9.45 | % | -2.1 | % | 25.1 | % | 0.5 | % | 3.4 | % | -0.4 | % | 23.47 | 0.43 | 7.82 | 321 | 9.88 | % | ||||||||||||||||||||||||||
Viewmont Mall | 23.43 | 1.24 | 8.13 | 330 | 9.94 | % | 5.4 | % | -25.2 | % | 13.1 | % | -4.3 | % | 0.9 | % | 22.23 | 1.66 | 7.19 | 345 | 9.01 | % | ||||||||||||||||||||||||||
Valley Mall | 17.99 | 1.31 | 5.49 | 330 | 7.51 | % | -0.5 | % | 45.7 | % | 6.3 | % | 3.4 | % | -0.1 | % | 18.07 | 0.90 | 5.17 | 319 | 7.57 | % | ||||||||||||||||||||||||||
Valley View Mall | 23.33 | 0.94 | 11.75 | 321 | 11.22 | % | 1.4 | % | 63.1 | % | -9.6 | % | 3.9 | % | -0.6 | % | 23.00 | 0.57 | 13.00 | 309 | 11.84 | % | ||||||||||||||||||||||||||
Cumberland Mall | 16.15 | 0.86 | 7.01 | 319 | 7.53 | % | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Magnolia Mall | 24.36 | 0.36 | 8.24 | 306 | 10.77 | % | -1.3 | % | -5.6 | % | -18.9 | % | -5.3 | % | -0.1 | % | 24.69 | 0.38 | 10.16 | 323 | 10.91 | % | ||||||||||||||||||||||||||
Palmer Park Mall | 21.72 | 0.81 | 7.65 | 304 | 9.93 | % | 2.9 | % | -28.0 | % | -24.1 | % | -9.3 | % | 0.3 | % | 21.12 | 1.13 | 10.07 | 335 | 9.65 | % | ||||||||||||||||||||||||||
Orlando Fashion Square | 25.92 | 0.24 | 11.13 | 304 | 12.27 | % | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Logan Valley Mall | 21.41 | 1.79 | 8.58 | 303 | 10.49 | % | 2.8 | % | 30.2 | % | 17.8 | % | 1.0 | % | 0.7 | % | 20.82 | 1.38 | 7.28 | 300 | 9.83 | % | ||||||||||||||||||||||||||
Weighted Average | 31.0 | % | $ | 23.38 | $ | 0.92 | $ | 8.42 | $ | 321 | 10.19 | % | 3.0 | % | 3.4 | % | 4.0 | % | -1.1 | % | 0.4 | % | $ | 22.71 | $ | 0.89 | $ | 8.10 | $ | 325 | 9.76 | % | ||||||||||||||||
Sales per square foot under $300 | ||||||||||||||||||||||||||||||||||||||||||||||||
Francis Scott Key Mall | $ | 22.62 | $ | 0.56 | $ | 7.28 | $ | 289 | 10.54 | % | 9.9 | % | -13.8 | % | 5.2 | % | 5.5 | % | 0.3 | % | $ | 20.59 | $ | 0.65 | $ | 6.92 | $ | 274 | 10.28 | % | ||||||||||||||||||
Phillipsburg Mall | 23.66 | 0.85 | 9.75 | 286 | 11.98 | % | 3.8 | % | 36.5 | % | -10.5 | % | 0.7 | % | -0.1 | % | 22.78 | 0.62 | 10.89 | 284 | 12.08 | % | ||||||||||||||||||||||||||
North Hanover Mall | 20.08 | 1.71 | 5.97 | 283 | 9.81 | % | 8.0 | % | 31.4 | % | -8.8 | % | 7.2 | % | -0.2 | % | 18.59 | 1.30 | 6.55 | 264 | 10.02 | % | ||||||||||||||||||||||||||
Wiregrass Mall | 21.50 | 0.77 | 6.63 | 277 | 10.44 | % | 6.3 | % | 48.6 | % | -16.8 | % | 4.9 | % | -0.4 | % | 20.24 | 0.52 | 7.97 | 264 | 10.88 | % | ||||||||||||||||||||||||||
South Mall | 15.51 | 0.33 | 4.65 | 274 | 7.48 | % | 6.4 | % | 3.7 | % | -6.3 | % | 4.2 | % | -0.1 | % | 14.57 | 0.32 | 4.96 | 263 | 7.55 | % | ||||||||||||||||||||||||||
New River Valley Mall | 19.04 | 0.75 | 4.06 | 274 | 8.70 | % | -2.3 | % | 53.7 | % | -0.9 | % | 7.0 | % | -0.7 | % | 19.48 | 0.49 | 4.10 | 256 | 9.40 | % | ||||||||||||||||||||||||||
Gadsden Mall | 19.35 | 0.10 | 7.77 | 272 | 10.01 | % | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Nittany Mall | 20.72 | 1.22 | 7.51 | 266 | 11.07 | % | 2.1 | % | 24.9 | % | 3.7 | % | 3.5 | % | 0.0 | % | 20.30 | 0.98 | 7.24 | 257 | 11.10 | % | ||||||||||||||||||||||||||
Crossroads Mall | 16.35 | 1.17 | 6.17 | 261 | 9.08 | % | -0.9 | % | 32.8 | % | 0.0 | % | 3.2 | % | -0.2 | % | 16.49 | 0.88 | 6.17 | 253 | 9.31 | % | ||||||||||||||||||||||||||
Washington Crown Center | 16.70 | 0.76 | 4.24 | 260 | 8.35 | % | 0.6 | % | 472.2 | % | -6.9 | % | 4.8 | % | -0.2 | % | 16.60 | 0.13 | 4.56 | 248 | 8.59 | % | ||||||||||||||||||||||||||
Uniontown Mall | 15.52 | 0.79 | 4.78 | 255 | 8.27 | % | 12.3 | % | -34.1 | % | 33.1 | % | 1.6 | % | 0.9 | % | 13.82 | 1.19 | 3.59 | 251 | 7.41 | % | ||||||||||||||||||||||||||
Plymouth Meeting | 19.35 | 0.00 | 7.67 | 249 | 10.85 | % | 4.3 | % | -100.0 | % | -9.2 | % | -3.5 | % | 0.3 | % | 18.55 | 0.32 | 8.44 | 258 | 10.59 | % | ||||||||||||||||||||||||||
Chambersburg Mall | 20.90 | 0.53 | 5.41 | 247 | 10.87 | % | 10.6 | % | 467.5 | % | 10.3 | % | 1.6 | % | 1.0 | % | 18.90 | 0.09 | 4.91 | 243 | 9.84 | % | ||||||||||||||||||||||||||
Lycoming Mall | 15.40 | 0.97 | 5.54 | 243 | 9.02 | % | 4.3 | % | -10.5 | % | 10.3 | % | -7.3 | % | 1.1 | % | 14.76 | 1.08 | 5.02 | 262 | 7.97 | % | ||||||||||||||||||||||||||
Beaver Valley Mall | 16.40 | 0.52 | 6.14 | 242 | 9.53 | % | 0.0 | % | 10.7 | % | -4.1 | % | 0.4 | % | -0.1 | % | 16.40 | 0.47 | 6.41 | 241 | 9.66 | % | ||||||||||||||||||||||||||
Echelon Mall | 21.03 | 0.14 | 8.34 | 207 | 14.25 | % | -7.5 | % | 40.5 | % | -33.4 | % | -5.5 | % | -1.9 | % | 22.72 | 0.10 | 12.51 | 219 | 16.13 | % | ||||||||||||||||||||||||||
Schuylkill Mall | 11.50 | 0.18 | 2.78 | 191 | 7.56 | % | 21.4 | % | -3.0 | % | -14.6 | % | -9.0 | % | 1.4 | % | 9.47 | 0.18 | 3.25 | 210 | 6.15 | % | ||||||||||||||||||||||||||
Weighted Average | 29.1 | % | $ | 18.36 | $ | 0.64 | $ | 6.14 | $ | 256 | 9.83 | % | 3.9 | % | 15.8 | % | -7.0 | % | 1.0 | % | 0.0 | % | $ | 17.67 | $ | 0.55 | $ | 6.60 | $ | 253 | 9.81 | % | ||||||||||||||||
Enclosed Malls weighted average | $ | 23.27 | $ | 0.86 | $ | 9.17 | $ | 329 | 10.14 | % | 0.5 | % | 11.2 | % | 0.9 | % | 1.0 | % | 0.0 | % | $ | 23.15 | $ | 0.78 | $ | 9.09 | $ | 325 | 10.14 | % | ||||||||||||||||||
Wholly Owned Properties | $ | 22.96 | $ | 0.89 | $ | 9.09 | $ | 323 | 10.20 | % | 1.0 | % | 13.3 | % | 0.6 | % | 0.7 | % | 0.0 | % | $ | 22.74 | $ | 0.78 | $ | 9.03 | $ | 320 | 10.16 | % | ||||||||||||||||||
Partnership Properties | $ | 29.72 | $ | 0.35 | $ | 10.91 | $ | 470 | 8.72 | % | -6.6 | % | -44.3 | % | 6.4 | % | 11.1 | % | -1.4 | % | $ | 31.82 | $ | 0.64 | $ | 10.26 | $ | 423 | 10.10 | % | ||||||||||||||||||
PRI-managed | $ | 22.96 | $ | 0.89 | $ | 9.09 | $ | 323 | 10.20 | % | 1.0 | % | 13.3 | % | 0.6 | % | 0.7 | % | 0.0 | % | $ | 22.74 | $ | 0.78 | $ | 9.03 | $ | 320 | 10.16 | % | ||||||||||||||||||
Non PRI-managed | $ | 29.72 | $ | 0.35 | $ | 10.91 | $ | 470 | 8.72 | % | -6.6 | % | -44.3 | % | 6.4 | % | 11.1 | % | -1.4 | % | $ | 31.82 | $ | 0.64 | $ | 10.26 | $ | 423 | 10.10 | % | ||||||||||||||||||
Same Properties/Existing | $ | 23.54 | $ | 0.90 | $ | 9.21 | $ | 331 | 10.17 | % | 1.7 | % | 16.4 | % | 1.4 | % | 1.7 | % | 0.0 | % | $ | 23.15 | $ | 0.78 | $ | 9.09 | $ | 325 | 10.14 | % | ||||||||||||||||||
New | $ | 20.63 | $ | 0.46 | $ | 8.78 | $ | 301 | 9.93 | % | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Continuing Operations | $ | 23.83 | $ | 0.92 | $ | 9.37 | $ | 333 | 10.24 | % | 1.4 | % | 16.4 | % | 1.4 | % | 1.8 | % | 0.0 | % | $ | 23.50 | $ | 0.79 | $ | 9.24 | $ | 327 | 10.24 | % | ||||||||||||||||||
Discontinued Operations | $ | 11.50 | $ | 0.18 | $ | 2.78 | $ | 191 | 7.56 | % | 21.4 | % | -3.0 | % | -14.6 | % | -9.0 | % | 1.4 | % | $ | 9.47 | $ | 0.18 | $ | 3.25 | $ | 210 | 6.15 | % | ||||||||||||||||||
(1) | Base rent is actual for Q305. Additional charges and % rent are projections for 2005. |
(2) | Average comparable sales for Q304 are actual. |
PAGE 26
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Power Centers
(Includes Non-Anchor Owned Space)
Q305 | % Change | Q304 | |||||||||||||||||||||||||
Avg Base Rent psf (1) | Avg % Rent psf (1) | Additional Charges psf | Avg Base Rent psf | Avg % Rent psf | Additional Charges psf | Avg Base Rent psf (1) | Avg % Rent psf (1) | Additional Charges psf | |||||||||||||||||||
Christiana Power Center | $ | 20.83 | $ | — | $ | 1.71 | 1.9 | % | N/A | -12.2 | % | $ | 20.44 | $ | — | $ | 1.95 | ||||||||||
Creekview Shopping Center | 14.47 | — | 2.63 | 0.7 | % | N/A | -6.1 | % | 14.37 | — | 2.80 | ||||||||||||||||
Metroplex Shopping Center | 18.23 | — | 3.58 | 0.6 | % | N/A | 0.2 | % | 18.13 | — | 3.58 | ||||||||||||||||
Northeast Tower Center | 14.63 | — | 3.22 | 0.7 | % | N/A | -13.3 | % | 14.53 | — | 3.71 | ||||||||||||||||
Paxton Towne Center | 15.99 | — | 2.70 | -0.8 | % | N/A | 5.4 | % | 16.12 | — | 2.56 | ||||||||||||||||
Red Rose Commons | 13.86 | 0.06 | 3.21 | 0.0 | % | 0.0 | % | 0.0 | % | 13.86 | 0.06 | 3.21 | |||||||||||||||
The Court at Oxford Valley | 15.37 | — | 3.90 | 0.0 | % | N/A | 0.0 | % | 15.37 | — | 3.90 | ||||||||||||||||
Whitehall Mall | 10.17 | 0.46 | 3.54 | -4.9 | % | 39.9 | % | 14.1 | % | 10.69 | 0.33 | 3.10 | |||||||||||||||
Power Centers weighted average | $ | 15.44 | $ | 0.06 | $ | 3.24 | -0.4 | % | 33.7 | % | 0.4 | % | $ | 15.49 | $ | 0.05 | $ | 3.22 | |||||||||
Wholly Owned Properties | $ | 16.14 | $ | — | $ | 2.65 | -0.1 | % | N/A | -3.5 | % | $ | 16.16 | $ | — | $ | 2.75 | ||||||||||
Partnership Properties | $ | 15.04 | $ | 0.10 | $ | 3.57 | -0.6 | % | 35.3 | % | 2.4 | % | $ | 15.13 | $ | 0.07 | $ | 3.48 | |||||||||
PRI-managed | $ | 16.14 | $ | — | $ | 2.65 | -0.1 | % | N/A | -3.5 | % | $ | 16.16 | $ | — | $ | 2.75 | ||||||||||
Non PRI-managed | $ | 15.04 | $ | 0.10 | $ | 3.57 | -0.6 | % | 35.3 | % | 2.4 | % | $ | 15.13 | $ | 0.07 | $ | 3.48 | |||||||||
Same Properties/Existing | $ | 15.44 | $ | 0.06 | $ | 3.24 | -0.4 | % | 33.7 | % | 0.4 | % | $ | 15.49 | $ | 0.05 | $ | 3.22 | |||||||||
New | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
(1) | Base rent is actual for Q305. Additional charges and % rent are projections for 2005. |
Q305 | Occupancy Change in % Occupancy | Q304 | ||||||||||||||||||||||||||||||||||
Total w/Anchor % Leased | Total w/Anchor % Available | In-Line only (Non- Anchor) % Leased | In-Line (Non- Anchor) % Available | Total w/Anchor % Leased | Total w/ Anchor % Available | In-Line only (Non- Anchor) % Leased | In-Line (Non- Anchor) % Available | Total w/ Anchor % Leased | Total w/ Anchor % Available | In-Line only (Non- Anchor) % Leased | In-Line (Non- Anchor) % Available | |||||||||||||||||||||||||
Christiana Power Center | 100.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | ||||||||||||
Creekview Shopping Center | 100.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | ||||||||||||
Metroplex Shopping Center | 100.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | ||||||||||||
Northeast Tower Center | 96.6 | % | 3.4 | % | 94.4 | % | 5.6 | % | 6.9 | % | -6.9 | % | 19.0 | % | -19.0 | % | 89.7 | % | 10.3 | % | 75.4 | % | 24.6 | % | ||||||||||||
Paxton Towne Center | 90.0 | % | 10.0 | % | 84.9 | % | 15.1 | % | -2.0 | % | 2.0 | % | -3.1 | % | 3.1 | % | 92.1 | % | 7.9 | % | 87.9 | % | 12.1 | % | ||||||||||||
Red Rose Commons | 99.2 | % | 0.8 | % | 99.2 | % | 0.8 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 99.2 | % | 0.8 | % | 99.2 | % | 0.8 | % | ||||||||||||
The Court at Oxford Valley | 100.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | ||||||||||||
Whitehall Mall | 98.5 | % | 1.5 | % | 96.6 | % | 3.4 | % | 1.1 | % | -1.1 | % | 2.6 | % | -2.6 | % | 97.4 | % | 2.6 | % | 94.0 | % | 6.0 | % | ||||||||||||
Power Centers weighted average | 97.8 | % | 2.2 | % | 96.6 | % | 3.4 | % | 0.9 | % | -0.9 | % | 1.7 | % | -1.7 | % | 96.8 | % | 3.2 | % | 95.0 | % | 5.0 | % | ||||||||||||
Wholly Owned Properties | 95.4 | % | 4.6 | % | 92.5 | % | 7.5 | % | 1.5 | % | -1.5 | % | 3.6 | % | -3.6 | % | 93.9 | % | 6.1 | % | 88.9 | % | 11.1 | % | ||||||||||||
Partnership Properties | 99.4 | % | 0.6 | % | 99.2 | % | 0.8 | % | 0.3 | % | -0.3 | % | 0.5 | % | -0.5 | % | 99.1 | % | 0.9 | % | 98.6 | % | 1.4 | % | ||||||||||||
PRI-managed | 95.4 | % | 4.6 | % | 92.5 | % | 7.5 | % | 1.5 | % | -1.5 | % | 3.6 | % | -3.6 | % | 93.9 | % | 6.1 | % | 88.9 | % | 11.1 | % | ||||||||||||
Non PRI-managed | 99.4 | % | 0.6 | % | 99.2 | % | 0.8 | % | 0.3 | % | -0.3 | % | 0.5 | % | -0.5 | % | 99.1 | % | 0.9 | % | 98.6 | % | 1.4 | % | ||||||||||||
Same Properties/Existing | 97.8 | % | 2.2 | % | 96.6 | % | 3.4 | % | 0.9 | % | -0.9 | % | 1.7 | % | -1.7 | % | 96.8 | % | 3.2 | % | 95.0 | % | 5.0 | % | ||||||||||||
New | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
PAGE 27
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Strip Centers
(Includes Non-Anchor Owned Space)
Q305 | % Change | Q304 | ||||||||||||||||||||||||
Avg Base Rent psf(1) | Avg % Rent psf(1) | Additional Charges psf | Avg Base Rent psf | Avg % Rent psf | Additional Charges psf | Avg Base Rent psf(1) | Avg % Rent psf(1) | Additional Charges psf | ||||||||||||||||||
Crest Plaza Shopping Center | $ | 16.39 | $ | — | $ | 2.47 | 3.6 | % | N/A | -36.9 | % | $ | 15.83 | $ | — | $ | 3.92 | |||||||||
Festival at Exton | 9.51 | — | 4.23 | -42.5 | % | N/A | 17.4 | % | 16.54 | — | 3.61 | |||||||||||||||
South Blanding Village | 9.50 | — | 2.37 | 1.6 | % | N/A | -3.6 | % | 9.35 | — | 2.46 | |||||||||||||||
Springfield Park I & II | 19.65 | — | 6.06 | 11.0 | % | N/A | 11.8 | % | 17.71 | — | 5.42 | |||||||||||||||
The Commons at Magnolia | 13.26 | — | 1.55 | 2.2 | % | N/A | -20.8 | % | 12.98 | — | 1.96 | |||||||||||||||
Strip Centers weighted average | $ | 13.20 | $ | — | $ | 3.09 | -11.5 | % | N/A | -9.7 | % | $ | 14.91 | $ | — | $ | 3.42 | |||||||||
Wholly Owned Properties | $ | 12.46 | $ | — | $ | 2.75 | -14.0 | % | N/A | -12.0 | % | $ | 14.50 | $ | — | $ | 3.13 | |||||||||
Partnership Properties | $ | 19.65 | $ | — | $ | 6.06 | 11.0 | % | N/A | 11.8 | % | $ | 17.71 | $ | — | $ | 5.42 | |||||||||
PRI-managed | $ | 13.20 | $ | — | $ | 3.09 | -11.5 | % | N/A | -9.7 | % | $ | 14.91 | $ | — | $ | 3.42 | |||||||||
Non PRI-managed | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||
Same Properties/Existing | $ | 13.20 | $ | — | $ | 3.09 | -11.5 | % | N/A | -9.7 | % | $ | 14.91 | $ | — | $ | 3.42 | |||||||||
New | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||
(1) | Base rent is actual for Q305. Additional charges and % rent are projections for 2005. |
Q305 | Occupancy Change in % Occupancy | Q304 | ||||||||||||||||||||||||||||||||||
Total w/Anchor % Leased | Total w/Anchor % Available | In-Line only (Non- Anchor) % Leased | In-Line (Non- Anchor) % Available | Total w/Anchor % Leased | Total w/Anchor % Available | In-Line only (Non- Anchor) % Leased | In-Line (Non- Anchor) % Available | Total w/ Anchor % Leased | Total w/ Anchor % Available | In-Line only (Non- Anchor) % Leased | In-Line (Non- Anchor) % Available | |||||||||||||||||||||||||
Crest Plaza Shopping Center | 98.1 | % | 1.9 | % | 96.4 | % | 3.6 | % | 1.7 | % | -1.7 | % | 2.6 | % | -2.6 | % | 96.4 | % | 3.6 | % | 93.8 | % | 6.2 | % | ||||||||||||
Festival at Exton | 56.6 | % | 43.4 | % | 72.9 | % | 27.1 | % | -37.4 | % | 37.4 | % | -16.9 | % | 16.9 | % | 94.0 | % | 6.0 | % | 89.8 | % | 10.2 | % | ||||||||||||
South Blanding Village | 97.9 | % | 2.1 | % | 93.3 | % | 6.7 | % | 1.1 | % | -1.1 | % | 3.7 | % | -3.7 | % | 96.8 | % | 3.2 | % | 89.6 | % | 10.4 | % | ||||||||||||
Springfield Park I & II | 84.2 | % | 15.8 | % | 53.7 | % | 46.3 | % | -6.8 | % | 6.8 | % | -19.7 | % | 19.7 | % | 90.9 | % | 9.1 | % | 73.5 | % | 26.5 | % | ||||||||||||
The Commons at Magnolia | 100.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | ||||||||||||
Strip Centers weighted average | 85.4 | % | 14.6 | % | 82.7 | % | 17.3 | % | -10.0 | % | 10.0 | % | -7.3 | % | 7.3 | % | 95.4 | % | 4.6 | % | 90.0 | % | 10.0 | % | ||||||||||||
Wholly Owned Properties | 85.7 | % | 14.3 | % | 88.2 | % | 11.8 | % | -10.9 | % | 10.9 | % | -5.0 | % | 5.0 | % | 96.6 | % | 3.4 | % | 93.1 | % | 6.9 | % | ||||||||||||
Partnership Properties | 84.2 | % | 15.8 | % | 53.7 | % | 46.3 | % | -6.8 | % | 6.8 | % | -19.7 | % | 19.7 | % | 90.9 | % | 9.1 | % | 73.5 | % | 26.5 | % | ||||||||||||
PRI-managed | 85.4 | % | 14.6 | % | 82.7 | % | 17.3 | % | -10.0 | % | 10.0 | % | -7.3 | % | 7.3 | % | 95.4 | % | 4.6 | % | 90.0 | % | 10.0 | % | ||||||||||||
Non PRI-managed | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Same Properties/Existing | 85.4 | % | 14.6 | % | 82.7 | % | 17.3 | % | -10.0 | % | 10.0 | % | -7.3 | % | 7.3 | % | 95.4 | % | 4.6 | % | 90.0 | % | 10.0 | % | ||||||||||||
New | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
PAGE 28
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
Retail Portfolio
(Includes Non-Anchor Owned Space)
Q305 | % Change | Q304 | |||||||||||||||||||||||||
Avg Base Rent psf(1) | Avg % Rent psf(1) | Additional Charges psf(1) | Avg Base Rent psf(1) | Avg % Rent psf(1) | Additional Charges psf(1) | Avg Base Rent psf(1) | Avg % Rent psf(1) | Additional Charges psf(1) | |||||||||||||||||||
Enclosed Malls weighted average | $ | 23.27 | $ | 0.86 | $ | 9.17 | 0.5 | % | 11.2 | % | 0.9 | % | $ | 23.15 | $ | 0.78 | $ | 9.09 | |||||||||
Power Centers weighted average | $ | 15.44 | $ | 0.06 | $ | 3.24 | -0.4 | % | 33.7 | % | 0.4 | % | $ | 15.49 | $ | 0.05 | $ | 3.22 | |||||||||
Strip Centers weighted average | $ | 13.20 | $ | — | $ | 3.09 | -11.5 | % | N/A | -9.7 | % | $ | 14.91 | $ | — | $ | 3.42 | ||||||||||
Retail Portfolio weighted average | $ | 21.83 | $ | 0.72 | $ | 8.11 | 0.7 | % | 12.9 | % | 1.6 | % | $ | 21.68 | $ | 0.64 | $ | 7.98 | |||||||||
Wholly Owned Properties | $ | 22.29 | $ | 0.81 | $ | 8.53 | 0.9 | % | 14.0 | % | 0.8 | % | $ | 22.09 | $ | 0.71 | $ | 8.46 | |||||||||
Partnership Properties | $ | 18.99 | $ | 0.17 | $ | 5.55 | -1.6 | % | -21.5 | % | 6.7 | % | $ | 19.31 | $ | 0.21 | $ | 5.20 | |||||||||
PRI-managed | $ | 22.29 | $ | 0.81 | $ | 8.52 | 0.9 | % | 14.1 | % | 0.9 | % | $ | 22.08 | $ | 0.71 | $ | 8.45 | |||||||||
Non PRI-managed | $ | 18.99 | $ | 0.17 | $ | 5.54 | -1.8 | % | -22.0 | % | 6.7 | % | $ | 19.34 | $ | 0.22 | $ | 5.19 | |||||||||
Same Properties/Existing | $ | 21.93 | $ | 0.74 | $ | 8.05 | 1.1 | % | 16.2 | % | 0.9 | % | $ | 21.68 | $ | 0.64 | $ | 7.98 | |||||||||
New | $ | 20.63 | $ | 0.46 | $ | 8.78 | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||
(1) | Base rent is actual for Q305. Additional charges and % rent are projections for 2005. |
(Includes Only Owned Space)
Q305 | Occupancy Change in % Occupancy | Q304 | ||||||||||||||||||||||||||||||||||
Total w/Anchor % Leased | Total w/Anchor % Available | In-Line only (Non- Anchor) % Leased | In-Line (Non- Anchor) % Available | Total w/Anchor % Leased | Total w/Anchor % Available | In-Line only (Non- Anchor) % Leased | In-Line (Non- Anchor) % Available | Total w/Anchor % Leased | Total w/Anchor % Available | In-Line only (Non- Anchor) % Leased | In-Line (Non- Anchor) % Available | |||||||||||||||||||||||||
Enclosed Malls weighted average | 90.9 | % | 9.1 | % | 85.9 | % | 14.1 | % | 0.1 | % | -0.1 | % | -1.0 | % | 1.0 | % | 90.8 | % | 9.2 | % | 86.9 | % | 13.1 | % | ||||||||||||
Power Centers weighted average | 97.8 | % | 2.2 | % | 96.6 | % | 3.4 | % | 0.9 | % | -0.9 | % | 1.7 | % | -1.7 | % | 96.8 | % | 3.2 | % | 95.0 | % | 5.0 | % | ||||||||||||
Strip Centers weighted average | 85.4 | % | 14.6 | % | 82.7 | % | 17.3 | % | -10.0 | % | 10.0 | % | -7.3 | % | 7.3 | % | 95.4 | % | 4.6 | % | 90.0 | % | 10.0 | % | ||||||||||||
Retail Portfolio weighted average | 91.6 | % | 8.4 | % | 87.4 | % | 12.6 | % | -0.1 | % | 0.1 | % | -0.8 | % | 0.8 | % | 91.7 | % | 8.3 | % | 88.2 | % | 11.8 | % | ||||||||||||
Wholly Owned Properties | 90.9 | % | 9.1 | % | 86.1 | % | 13.9 | % | -0.2 | % | 0.2 | % | -1.2 | % | 1.2 | % | 91.2 | % | 8.8 | % | 87.3 | % | 12.7 | % | ||||||||||||
Partnership Properties | 97.6 | % | 2.4 | % | 96.4 | % | 3.6 | % | 1.5 | % | -1.5 | % | 2.2 | % | -2.2 | % | 96.1 | % | 3.9 | % | 94.1 | % | 5.9 | % | ||||||||||||
PRI-managed | 90.9 | % | 9.1 | % | 86.0 | % | 14.0 | % | -0.3 | % | 0.3 | % | -1.2 | % | 1.2 | % | 91.2 | % | 8.8 | % | 87.2 | % | 12.8 | % | ||||||||||||
Non PRI-managed | 98.3 | % | 1.7 | % | 97.5 | % | 2.5 | % | 1.9 | % | -1.9 | % | 2.8 | % | -2.8 | % | 96.3 | % | 3.7 | % | 94.7 | % | 5.3 | % | ||||||||||||
Same | 91.4 | % | 8.6 | % | 87.4 | % | 12.6 | % | -0.3 | % | 0.3 | % | -0.8 | % | 0.8 | % | 91.7 | % | 8.3 | % | 88.2 | % | 11.8 | % | ||||||||||||
New | 94.0 | % | 6.0 | % | 87.8 | % | 12.2 | % | 94.0 | % | 6.0 | % | 87.8 | % | 12.2 | % | N/A | N/A | N/A | N/A | ||||||||||||||||
* | Westgate Anchor Pad consists of a 108,100 sf. Bon-Ton Store for which PREIT receives $307,003/yr ($2.84/sf) and is not included in the Occupancy and Rent reports. |
PAGE 29
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
BALANCE SHEET-RECONCILIATION TO GAAP
(Wholly Owned vs. Partnerships)
September 30, 2005 | December 31, 2004 | |||||||||||||||||||||||||||||||||||||||
Combined TOTAL (1) | Adjustments to Equity Method | Subtotal | Assets Held for Sale | TOTAL | Combined TOTAL (1) | Adjustments to Equity Method | Subtotal | Assets Held for Sale | TOTAL | |||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||
Investments in Real Estate, at cost | ||||||||||||||||||||||||||||||||||||||||
Retail Properties | $ | 2,759,196,647 | $ | (121,251,756 | ) | $ | 2,637,944,891 | $ | (8,108,061 | ) | $ | 2,629,836,830 | $ | 2,649,708,369 | $ | (131,343,981 | ) | $ | 2,518,364,388 | $ | (8,108,066 | ) | $ | 2,510,256,322 | ||||||||||||||||
Office/Industrial Properties | 1,502,711 | — | 1,502,711 | (1,502,711 | ) | — | 2,504,211 | — | 2,504,211 | (2,504,211 | ) | — | ||||||||||||||||||||||||||||
Lend Held for Development | 6,099,758 | — | 6,099,758 | — | 6,099,758 | 9,862,704 | — | 9,862,704 | — | 9,862,704 | ||||||||||||||||||||||||||||||
Construction In Progress | 60,650,964 | (2,117,463 | ) | 58,533,501 | — | 58,533,501 | 13,494,757 | (2,542,307 | ) | 10,952,450 | — | 10,952,450 | ||||||||||||||||||||||||||||
TOTAL INVESTMENTS IN REAL ESTATE | 2,827,450,080 | (123,369,219 | ) | 2,704,080,861 | (9,610,772 | ) | 2,694,470,089 | 2,675,570,041 | (133,886,288 | ) | 2,541,683,753 | (10,612,277 | ) | 2,531,071,476 | ||||||||||||||||||||||||||
Accumulated Depreciation | (235,521,494 | ) | 31,568,160 | (203,953,334 | ) | — | (203,953,334 | ) | (184,908,972 | ) | 34,023,363 | (150,885,609 | ) | 2,126,931 | (148,758,678 | ) | ||||||||||||||||||||||||
Net Real Estate | 2,591,928,586 | (91,801,059 | ) | 2,500,127,527 | (9,610,772 | ) | 2,490,516,755 | 2,490,661,069 | (99,862,925 | ) | 2,390,798,144 | (8,485,346 | ) | 2,382,312,798 | ||||||||||||||||||||||||||
Investment in and Advances to Partnerships | — | 35,183,720 | 35,183,720 | — | 35,183,720 | — | 27,243,862 | 27,243,862 | — | 27,243,862 | ||||||||||||||||||||||||||||||
2,591,928,586 | (56,617,339 | ) | 2,535,311,247 | (9,610,772 | ) | 2,525,700,475 | 2,490,661,069 | (72,619,063 | ) | 2,418,042,006 | (8,485,346 | ) | 2,409,556,660 | |||||||||||||||||||||||||||
Other Assets: | ||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | 32,012,926 | (3,058,461 | ) | 28,954,465 | — | 28,954,465 | 45,652,723 | (5,609,103 | ) | 40,043,620 | — | 40,043,620 | ||||||||||||||||||||||||||||
Rents and Other Receivables | 44,925,533 | (11,574,021 | ) | 33,351,512 | — | 33,351,512 | 43,309,818 | (11,328,239 | ) | 31,981,579 | — | 31,981,579 | ||||||||||||||||||||||||||||
Assets Held for Sale | 7,637,401 | — | 7,637,401 | 9,610,772 | 17,248,173 | 6,835,290 | — | 6,835,290 | 8,485,346 | 15,320,636 | ||||||||||||||||||||||||||||||
Intangible Assets(2) | 165,745,827 | — | 165,745,827 | — | 165,745,827 | 171,849,678 | — | 171,849,678 | — | 171,849,678 | ||||||||||||||||||||||||||||||
Deferred Costs, Prepaid Taxes & Exp. & Other Assets | 83,133,062 | (14,691,549 | ) | 68,441,513 | 68,441,513 | 70,201,174 | (7,550,567 | ) | 62,650,607 | — | 62,650,607 | |||||||||||||||||||||||||||||
TOTAL OTHER ASSETS | 333,454,749 | (29,324,031 | ) | 304,130,718 | 9,610,772 | 313,741,490 | 337,848,683 | (24,487,909 | ) | 313,360,774 | 8,485,346 | 321,846,120 | ||||||||||||||||||||||||||||
TOTAL ASSETS | 2,925,383,335 | (85,941,370 | ) | 2,839,441,965 | — | 2,839,441,965 | 2,828,509,752 | (97,106,972 | ) | 2,731,402,780 | — | 2,731,402,780 | ||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Mortgage Notes Payable | 1,398,224,756 | (96,807,369 | ) | 1,301,417,387 | (17,113,872 | ) | 1,284,303,515 | 1,269,992,376 | (107,513,205 | ) | 1,162,479,171 | (17,399,761 | ) | 1,145,079,410 | ||||||||||||||||||||||||||
Mortgage Debt Premium (3) | 44,311,462 | — | 44,311,462 | — | 44,311,462 | 56,134,624 | — | 56,134,624 | — | 56,134,624 | ||||||||||||||||||||||||||||||
Bank Loans Payable | 276,000,000 | — | 276,000,000 | — | 276,000,000 | 271,000,000 | — | 271,000,000 | — | 271,000,000 | ||||||||||||||||||||||||||||||
Assets Held for Sale | 1,496,721 | — | 1,496,721 | 17,113,872 | 18,610,593 | 1,164,210 | — | 1,164,210 | 17,399,761 | 18,563,971 | ||||||||||||||||||||||||||||||
Other Liabilities(4) | 87,264,466 | 10,865,999 | 98,130,465 | — | 98,130,465 | 93,783,623 | 10,406,233 | 104,189,856 | — | 104,189,856 | ||||||||||||||||||||||||||||||
TOTAL LIABILITIES | 1,807,297,405 | (85,941,370 | ) | 1,721,356,035 | — | 1,721,356,035 | 1,692,074,833 | (97,106,972 | ) | 1,594,967,861 | — | 1,594,967,861 | ||||||||||||||||||||||||||||
Minority Interest | 131,091,170 | — | 131,091,170 | — | 131,091,170 | 131,968,917 | — | 131,968,917 | — | 131,968,917 | ||||||||||||||||||||||||||||||
Shareholders’ Equity: | ||||||||||||||||||||||||||||||||||||||||
Shares of Beneficial Interest at $1 Par | 36,714,462 | — | 36,714,462 | — | 36,714,462 | 36,272,160 | — | 36,272,160 | — | 36,272,160 | ||||||||||||||||||||||||||||||
Preferred Shares at $0.01 Par | 24,750 | — | 24,750 | — | 24,750 | 24,750 | — | 24,750 | — | 24,750 | ||||||||||||||||||||||||||||||
Capital Contributed in Excess of Par | 916,936,586 | — | 916,936,586 | — | 916,936,586 | 899,506,128 | — | 899,506,128 | — | 899,506,128 | ||||||||||||||||||||||||||||||
Restricted Stock | (14,283,902 | ) | — | (14,283,902 | ) | — | (14,283,902 | ) | (7,736,812 | ) | — | (7,736,812 | ) | — | (7,736,812 | ) | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 2,770,127 | — | 2,770,127 | — | 2,770,127 | (1,821,457 | ) | — | (1,821,457 | ) | — | (1,821,457 | ) | |||||||||||||||||||||||||||
Retained Earnings | 44,832,737 | — | 44,832,737 | — | 44,832,737 | 78,221,233 | — | 78,221,233 | — | 78,221,233 | ||||||||||||||||||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 986,994,760 | — | 986,994,760 | — | 986,994,760 | 1,004,466,002 | — | 1,004,466,002 | — | 1,004,466,002 | ||||||||||||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 2,925,383,335 | $ | (85,941,370 | ) | $ | 2,839,441,965 | $ | — | $ | 2,839,441,965 | $ | 2,828,509,752 | $ | (97,106,972 | ) | $ | 2,731,402,780 | $ | — | $ | 2,731,402,780 | ||||||||||||||||||
September 30, 2004 | ||||||||||||||||||||
Combined TOTAL (1) | Adjustments to Equity Method | Subtotal | Assets Held for Sale | TOTAL | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Investments in Real Estate, at cost | ||||||||||||||||||||
Retail Properties | $ | 2,513,835,536 | $ | (131,428,634 | ) | $ | 2,382,406,902 | $ | (8,102,171 | ) | $ | 2,374,304,731 | ||||||||
Office/Industrial Properties | 2,504,211 | — | 2,504,211 | (2,504,211 | ) | — | ||||||||||||||
Lend Held for Development | 9,542,722 | — | 9,542,722 | — | 9,542,722 | |||||||||||||||
Construction In Progress | 23,599,285 | (1,693,762 | ) | 21,905,523 | — | 21,905,523 | ||||||||||||||
TOTAL INVESTMENTS IN REAL ESTATE | 2,549,481,754 | (133,122,396 | ) | 2,416,359,358 | (10,606,382 | ) | 2,405,752,976 | |||||||||||||
Accumulated Depreciation | (163,944,306 | ) | 31,124,661 | (132,819,645 | ) | 2,114,391 | (130,705,254 | ) | ||||||||||||
Net Real Estate | 2,385,537,448 | (101,997,735 | ) | 2,283,539,713 | (8,491,991 | ) | 2,275,047,722 | |||||||||||||
Investment in and Advances to Partnerships | — | 28,700,295 | 28,700,295 | — | 28,700,295 | |||||||||||||||
2,385,537,448 | (73,297,440 | ) | 2,312,240,008 | (8,491,991 | ) | 2,303,748,017 | ||||||||||||||
Other Assets: | ||||||||||||||||||||
Cash and Cash Equivalents | 35,824,104 | (5,423,522 | ) | 30,400,582 | 30,400,582 | |||||||||||||||
Rents and Other Receivables | 32,523,063 | (6,894,906 | ) | 25,628,157 | — | 25,628,157 | ||||||||||||||
Assets Held for Sale | 6,441,947 | — | 6,441,947 | 8,491,991 | 14,933,938 | |||||||||||||||
Intangible Assets(2) | 163,274,661 | — | 163,274,661 | — | 163,274,661 | |||||||||||||||
Deferred Costs, Prepaid Taxes & Exp. & Other Assets | 69,613,501 | (11,015,164 | ) | 58,598,337 | 58,598,337 | |||||||||||||||
TOTAL OTHER ASSETS | 307,677,276 | (23,333,592 | ) | 284,343,684 | 8,491,991 | 292,835,675 | ||||||||||||||
TOTAL ASSETS | 2,693,214,724 | (96,631,032 | ) | 2,596,583,692 | — | 2,596,583,692 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Mortgage Notes Payable | 1,305,144,423 | (108,055,084 | ) | 1,197,089,339 | (17,228,605 | ) | 1,179,860,734 | |||||||||||||
Mortgage Debt Premium (3) | 60,945,819 | — | 60,945,819 | — | 60,945,819 | |||||||||||||||
Bank Loans Payable | 112,000,000 | — | 112,000,000 | — �� | 112,000,000 | |||||||||||||||
Assets Held for Sale | 707,595 | — | 707,595 | 17,228,605 | 17,936,200 | |||||||||||||||
Other Liabilities(4) | 81,031,043 | 11,424,052 | 92,455,095 | 92,455,095 | ||||||||||||||||
TOTAL LIABILITIES | 1,559,828,880 | (96,631,032 | ) | 1,463,197,848 | — | 1,463,197,848 | ||||||||||||||
Minority Interest | 132,774,526 | — | 132,774,526 | — | 132,774,526 | |||||||||||||||
Shareholders’ Equity: | ||||||||||||||||||||
Shares of Beneficial Interest at $1 Par | 36,094,566 | — | 36,094,566 | — | 36,094,566 | |||||||||||||||
Preferred Shares at $0.01 Par | 24,750 | — | 24,750 | — | 24,750 | |||||||||||||||
Capital Contributed in Excess of Par | 892,853,369 | — | 892,853,369 | — | 892,853,369 | |||||||||||||||
Restricted Stock | (8,593,279 | ) | — | (8,593,279 | ) | — | (8,593,279 | ) | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | (1,830,568 | ) | — | (1,830,568 | ) | — | (1,830,568 | ) | ||||||||||||
Retained Earnings | 82,062,480 | — | 82,062,480 | — | 82,062,480 | |||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 1,000,611,318 | — | 1,000,611,318 | — | 1,000,611,318 | |||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 2,693,214,724 | $ | (96,631,032 | ) | $ | 2,596,583,692 | $ | — | $ | 2,596,583,692 | |||||||||
(1) | Includes PREIT’s percent of partnership investments that is “grossed up” to reflect the Company’s share of the Total Assets and Liabilities of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments. |
(2) | Includes value of acquired in-place leases and above-market value of leases recorded in connection with the acquisition of properties since 2002. Purchase accounting rules require a purchaser to separately value the leases that are in place at the acquisition date, as well as the above- or below-market values of the leases. |
(3) | Represents premium that is recorded in connection with debt assumed when a property is purchased. The debt is marked to market at the acquisition date and the premium is amortized through interest expense over the remaining term of the debt. |
(4) | For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses and Other Liabilities including Deficit Partnership Investments. |
PAGE 30
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
INCOME STATEMENT-RECONCILIATION TO GAAP(1)
QUARTERLY COMPARISON
(Wholly Owned vs. Partnerships)
Q3 05 (3 months ended 9/30/05) | TOTAL % CHANGE | ||||||||||||||||||||||
Combined TOTAL(2) | Adjustments to Equity Method | Subtotal | Assets Held for Sale | Total | |||||||||||||||||||
Base Rents | $ | 71,950,117 | $ | (4,854,281 | ) | $ | 67,095,836 | $ | (882,372 | ) | $ | 66,213,464 | 8.6 | % | |||||||||
Straight-Lining of Base Rents | 1,174,962 | 23,510 | 1,198,472 | (8,525 | ) | 1,189,947 | -1.8 | % | |||||||||||||||
Percentage Rents | 1,453,810 | (34,871 | ) | 1,418,939 | 18,101 | 1,437,040 | -12.7 | % | |||||||||||||||
Expense Reimbursements | 33,842,482 | (1,421,033 | ) | 32,421,449 | (376,384 | ) | 32,045,065 | 7.3 | % | ||||||||||||||
Lease Termination Revenue | 551,843 | (376,109 | ) | 175,734 | — | 175,734 | -89.6 | % | |||||||||||||||
Other Real Estate Revenues | 2,516,228 | (163,025 | ) | 2,353,203 | (31,209 | ) | 2,321,994 | 12.5 | % | ||||||||||||||
TOTAL REAL ESTATE REVENUES | 111,489,442 | (6,825,809 | ) | 104,663,633 | (1,280,389 | ) | 103,383,244 | 6.1 | % | ||||||||||||||
Operating and Maintenance | (32,494,206 | ) | 1,342,296 | (31,151,910 | ) | 643,945 | (30,507,965 | ) | 11.8 | % | |||||||||||||
Real Estate Taxes | (10,886,637 | ) | 614,437 | (10,272,200 | ) | 126,905 | (10,145,295 | ) | 19.1 | % | |||||||||||||
TOTAL PROPERTY OPERATING EXPENSES | (43,380,843 | ) | 1,956,733 | (41,424,110 | ) | 770,850 | (40,653,260 | ) | 13.6 | % | |||||||||||||
NET OPERATING INCOME | 68,108,599 | (4,869,076 | ) | 63,239,523 | (509,539 | ) | 62,729,984 | 1.7 | % | ||||||||||||||
OTHER INCOME (EXPENSES) | |||||||||||||||||||||||
Management Company Revenue | 1,136,109 | — | 1,136,109 | — | 1,136,109 | -38.0 | % | ||||||||||||||||
Interest Income | 293,002 | — | 293,002 | — | 293,002 | 63.2 | % | ||||||||||||||||
General & Administrative: | |||||||||||||||||||||||
Corporate Payroll and Benefits | (6,822,681 | ) | — | (6,822,681 | ) | — | (6,822,681 | ) | -7.0 | % | |||||||||||||
Other G&A Expenses and taxes | (1,667,228 | ) | — | (1,667,228 | ) | — | (1,667,228 | ) | -57.9 | % | |||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) | 61,047,801 | (4,869,076 | ) | 56,178,725 | (509,539 | ) | 55,669,186 | 6.3 | % | ||||||||||||||
Interest Expense (1) | (23,816,964 | ) | 1,958,384 | (21,858,580 | ) | 310,177 | (21,548,403 | ) | 17.8 | % | |||||||||||||
Depreciation & Amortization | (28,831,399 | ) | 1,102,720 | (27,728,679 | ) | — | (27,728,679 | ) | 21.0 | % | |||||||||||||
TOTAL EXPENSES | (52,648,363 | ) | 3,061,104 | (49,587,259 | ) | 310,177 | (49,277,082 | ) | 19.6 | % | |||||||||||||
Equity in Income of partnerships | — | 1,807,972 | 1,807,972 | 1,807,972 | 20.9 | % | |||||||||||||||||
Gains on Sales of Interests in Real Estate | 11,760,495 | — | 11,760,495 | (3,736,414 | ) | 8,024,081 | 424.7 | % | |||||||||||||||
Income before Minority Interest | 20,159,933 | — | 20,159,933 | (3,935,776 | ) | 16,224,157 | 14.4 | % | |||||||||||||||
Minority Interest in Properties | (41,109 | ) | — | (41,109 | ) | — | (41,109 | ) | -14.8 | % | |||||||||||||
Minority Interest of O.P. Unitholders | (1,781,811 | ) | — | (1,781,811 | ) | — | (1,781,811 | ) | 17.4 | % | |||||||||||||
Income from Operations | 18,337,013 | — | 18,337,013 | (3,935,776 | ) | 14,401,237 | 14.1 | % | |||||||||||||||
Discontinued Operations: | |||||||||||||||||||||||
Income from Discontinued Operations | — | — | — | 199,362 | 199,362 | -89.3 | % | ||||||||||||||||
Minority Interest in Properties | — | — | — | — | — | N/A | |||||||||||||||||
Minority Interest of O.P. Unitholders | (441,242 | ) | — | (441,242 | ) | — | (441,242 | ) | 115.1 | % | |||||||||||||
Gain/adjustments to Gains on Disposition of Discontinued Operations | — | — | — | 3,736,414 | 3,736,414 | N/A | |||||||||||||||||
TOTAL DISCONTINUED OPERATIONS | (441,242 | ) | — | (441,242 | ) | 3,935,776 | 3,494,534 | N/A | |||||||||||||||
NET INCOME | $ | 17,895,771 | $ | — | $ | 17,895,771 | $ | — | $ | 17,895,771 | 25.4 | % | |||||||||||
Q3 04 (3 months ended 9/30/04) | ||||||||||||||||||||
Combined TOTAL(2) | Adjustments to Equity Method | Subtotal | Assets Held for Sale | Total | ||||||||||||||||
Base Rents | $ | 70,621,109 | $ | (5,171,295 | ) | $ | 65,449,814 | (4,473,236 | ) | $ | 60,976,578 | |||||||||
Straight-Lining of Base Rents | 1,269,906 | (853 | ) | 1,269,053 | (57,210 | ) | 1,211,843 | |||||||||||||
Percentage Rents | 1,873,163 | (53,063 | ) | 1,820,100 | (173,169 | ) | 1,646,931 | |||||||||||||
Expense Reimbursements | 33,424,615 | (1,335,661 | ) | 32,088,954 | (2,231,543 | ) | 29,857,411 | |||||||||||||
Lease Termination Revenue | 1,690,536 | — | 1,690,536 | — | 1,690,536 | |||||||||||||||
Other Real Estate Revenues | 2,272,817 | (18,637 | ) | 2,254,180 | (190,468 | ) | 2,063,712 | |||||||||||||
TOTAL REAL ESTATE REVENUES | 111,152,146 | (6,579,509 | ) | 104,572,637 | (7,125,626 | ) | 97,447,011 | |||||||||||||
Operating and Maintenance | (32,294,350 | ) | 1,360,094 | (30,934,256 | ) | 3,654,073 | (27,280,183 | ) | ||||||||||||
Real Estate Taxes | (9,993,786 | ) | 710,170 | (9,283,616 | ) | 768,713 | (8,514,903 | ) | ||||||||||||
TOTAL PROPERTY OPERATING EXPENSES | (42,288,136 | ) | 2,070,264 | (40,217,872 | ) | 4,422,786 | (35,795,086 | ) | ||||||||||||
NET OPERATING INCOME | 68,864,010 | (4,509,245 | ) | 64,354,765 | (2,702,840 | ) | 61,651,925 | |||||||||||||
OTHER INCOME (EXPENSES) | ||||||||||||||||||||
Management Company Revenue | 1,831,296 | — | 1,831,296 | — | 1,831,296 | |||||||||||||||
Interest Income | 179,562 | — | 179,562 | — | 179,562 | |||||||||||||||
General & Administrative: | ||||||||||||||||||||
Corporate Payroll and Benefits | (7,335,945 | ) | — | (7,335,945 | ) | — | (7,335,945 | ) | ||||||||||||
Other G&A Expenses and taxes | (3,958,168 | ) | — | (3,958,168 | ) | — | (3,958,168 | ) | ||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) | 59,580,755 | (4,509,245 | ) | 55,071,510 | (2,702,840 | ) | 52,368,670 | |||||||||||||
Interest Expense (1) | (21,139,131 | ) | 2,010,883 | (19,128,248 | ) | 834,742 | (18,293,506 | ) | ||||||||||||
Depreciation & Amortization | (23,927,272 | ) | 1,002,577 | (22,924,695 | ) | 12,540 | (22,912,155 | ) | ||||||||||||
TOTAL EXPENSES | (45,066,403 | ) | 3,013,460 | (42,052,943 | ) | 847,282 | (41,205,661 | ) | ||||||||||||
Equity in Income of partnerships | 1,495,785 | 1,495,785 | 1,495,785 | |||||||||||||||||
Gains on Sales of Interests in Real Estate | 1,529,183 | — | 1,529,183 | — | 1,529,183 | |||||||||||||||
Income before Minority Interest | 16,043,535 | — | 16,043,535 | (1,855,558 | ) | 14,187,977 | ||||||||||||||
Minority Interest in Properties | (53,268 | ) | (53,268 | ) | 5,038 | (48,230 | ) | |||||||||||||
Minority Interest of O.P. Unitholders | (1,517,300 | ) | — | (1,517,300 | ) | — | (1,517,300 | ) | ||||||||||||
Income from Operations | 14,472,967 | — | 14,472,967 | (1,850,520 | ) | 12,622,447 | ||||||||||||||
Discontinued Operations: | ||||||||||||||||||||
Income from Discontinued Operations | — | — | — | 1,855,558 | 1,855,558 | |||||||||||||||
Minority Interest in Properties | — | — | — | (5,038 | ) | (5,038 | ) | |||||||||||||
Minority Interest of O.P. Unitholders | (205,095 | ) | — | (205,095 | ) | — | (205,095 | ) | ||||||||||||
Gain/adjustments to Gains on Disposition of Discontinued Operations | — | — | — | — | — | |||||||||||||||
TOTAL DISCONTINUED OPERATIONS | (205,095 | ) | — | (205,095 | ) | 1,850,520 | 1,645,425 | |||||||||||||
NET INCOME | $ | 14,267,872 | $ | — | $ | 14,267,872 | $ | — | $ | 14,267,872 | ||||||||||
(1) | Capitalized interest expense of $795,000 is not included in the quarter ended 9/30/05 and $419,000 is not included in the quarter ended 9/30/04. |
(2) | Includes PREIT’s percent of partnership investments that is “grossed up” to reflect the Company’s share of the Total Revenues and Expenses of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments. |
PAGE 31
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2005)
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, as income before gains (losses) on sales of operating property and extraordinary items (computed in accordance with GAAP); plus real estate depreciation; plus or minus adjustments for unconsolidated partnership to reflect funds from operations on the same basis. FFO is a commonly used measure of operating performance and profitability in the REIT industry, and we use FFO as a supplemental non-GAAP measure to compare our company’s performance to that of our industry peers. In addition, we use FFO as a performance measure for determining bonus amounts earned under certain of our performance-based executive compensation programs. The Company computes FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than the Company.
FFO does not include gains (losses) on operating real estate assets, which are included in the determination of net income in accordance with GAAP. Accordingly, FFO is not a comprehensive measure of our operating cash flows. In addition, since FFO does not include depreciation on real estate assets, FFO may not be a useful performance measure when comparing our operating performance to that of other non-real estate commercial enterprises. We compensate for these limitations by using FFO in conjunction with other GAAP financial performance measures, such as net income and net cash provided by operating activities, and other non-GAAP financial performance measures such as net operating income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is it indicative of funds available for the Company’s cash needs, including its ability to make cash distributions.
The Company believes that net income is the most directly comparable GAAP measurement to FFO. The Company believes that FFO is helpful to management and investors as a measure of operating performance because it excludes various items included in net income that do not relate to or are not indicative of operating performance, such as various non-recurring items that are considered extraordinary under GAAP, gains on sales of real estate and depreciation and amortization of real estate.
Net Operating Income (NOI)
Net operating income (“NOI”), which is a non-GAAP measure, is derived from revenues (determined in accordance with GAAP) minus property operating expenses (determined in accordance with GAAP). Net operating income is a non-GAAP measure. It does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity; nor is it indicative of funds available for the Company’s cash needs, including its ability to make cash distributions. The Company believes that net income is the most directly comparable GAAP measurement to net operating income.
The Company believes that net operating income is helpful to management and investors as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. Net operating income excludes general and administrative expenses, management company revenues, interest income, interest expense, depreciation and amortization, income from discontinued operations and gains on sales of interests in real estate.
Funds Available for Distribution (FAD)
FAD is also referred to as Cash Available for Distributions (CAD) or adjusted FFO (AFFO). FAD refers to a computation made by analysts and investors to measure a real estate company’s cash flows generated by operations. FAD is calculated by subtracting from FFO (1) normalized recurring capital expenditures that are capitalized but necessary to maintain a REIT’s properties and (2) straight-line rents.
The Company believes that net income is the most directly comparable GAAP measurement to FAD. The Company believes FAD provides a meaningful indicator of its ability to fund cash needs and to make cash distributions to equity owners. In addition, the Company believes that to further understand its liquidity, FAD should be compared with its cash flow from operating activities determined in accordance with GAAP, as presented in its consolidated financial statements. The computation of FAD may not be comparable to FAD reported by other REITs or real estate companies and FAD does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, or as an alternative to net cash flow from operating activities (determined in accordance with GAAP), as a measure of our liquidity.
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)
Earnings before interest, taxes, depreciation and amortization. On a property level, EBITDA and NOI are equivalent; however, certain corporate revenues and expenses are added and deducted to/from NOI to derive EBITDA on a company wide basis. Specifically, management company revenues and interest income are added to NOI while corporate payroll and other General and Administrative expenses are deducted from NOI to calculate EBITDA.
The Company believes that net income is the most directly comparable GAAP measurement to EBITDA. The Company believes that EBITDA helps the Company and its investors evaluate the ongoing operating performance of its properties and facilitate comparisons with other REITs and real estate companies. These measures assist management by providing a baseline to assess property-level results, particularly as the Company acquires or sells assets. The EBITDA measures presented by the Company may not be comparable to other similarly titled measures of other companies.
PAGE 32