Exhibit 99.1
CONTACT:
Robert McCadden
EVP & CFO
(215) 875-0735
Nurit Yaron
VP, Investor Relations
(215) 875-0735
PREIT Reports Third Quarter 2010 Results
Philadelphia, PA, November 4, 2010 – Pennsylvania Real Estate Investment Trust (NYSE: PEI) today reported results for the three and nine months ended September 30, 2010.
Funds From Operations (“FFO”), as adjusted to exclude gains or charges associated with the repayment of debt, was $23.2 million, or $0.41 per diluted share, for the three months ended September 30, 2010. FFO as so adjusted for the three months ended September 30, 2009 was $25.6 million, or $0.58 per diluted share. For the nine months ended September 30, 2010, FFO as adjusted was $70.7 million, or $1.35 per diluted share. FFO as adjusted for the nine months ended September 30, 2009 was $83.0 million, or $1.96 per diluted share. Key factors that led to these changes include increased interest expense and decreased Net Operating Income (“NOI”). The per diluted share amounts reflect the effect of the Company’s equity issuance in May 2010.
Without the adjustments referred to above, FFO for the three months ended September 30, 2010 was $21.8 million, or $0.38 per diluted share. FFO for the three months ended September 30, 2009 was $29.8 million, or $0.67 per diluted share. For the nine months ended September 30, 2010, FFO was $67.0 million, or $1.28 per diluted share. FFO for the nine months ended September 30, 2009 was $96.9 million, or $2.29 per diluted share. A reconciliation of FFO to FFO as adjusted is located at the end of this press release.
Same store NOI was $66.0 million, including $0.4 million in lease termination revenue, for the three months ended September 30, 2010, a decrease of 1.5% compared to $67.0 million, including $0.3 million in lease termination revenue, for the three months ended September 30, 2009. For the nine months ended September 30, 2010, same store NOI was $202.0 million, including $2.8 million in lease termination revenue, a decrease of 1.5% compared to $205.1 million, including $1.8 million in lease termination revenue, for the nine months ended September 30, 2009. Same store results represent retail properties that the Company owned for the full periods presented.
NOI was $68.5 million for the three months ended September 30, 2010, compared to $70.5 million for the three months ended September 30, 2009. NOI was $209.8 million for the nine months ended September 30, 2010, compared to $215.7 million for the nine months ended September 30, 2009. A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP measure are located at the end of this press release.
Net loss attributable to PREIT was $3.6 million, or $0.07 per diluted share, for the three months ended September 30, 2010 compared to a net loss attributable to PREIT of $9.6 million, or $0.23 per diluted share, for the three months ended September 30, 2009. Net loss attributable to PREIT was $43.9 million, or $0.90 per diluted share, for the nine months ended September 30, 2010 compared to a net loss attributable to PREIT of $24.6 million, or $0.63 per diluted share, for the nine months ended September 30, 2009.
“Operating results for the quarter were in line with our expectations. Tenants have been reporting increases in sales and we have increased our overall portfolio occupancy level over the past year,” said Ronald Rubin, Chairman and Chief Executive Officer. “We completed the sale of five power centers and used the proceeds to reduce our debt balances, improve our liquidity, and lower our leverage.”
Primary Factors Affecting Financial Results
Results for the three months ended September 30, 2010 included:
| • | A $19.2 million non-FFO gain on sale of discontinued operations from the sale of five wholly owned power centers in September 2010; and |
| • | Increased weighted average shares, as a result of the sale of 10.35 million common shares in May 2010, and the issuance of 1.3 million shares in October of 2009 as part of a transaction to repurchase exchangeable notes; and |
| • | Increased interest expense including accelerated amortization of $1.4 million of deferred financing costs from the reduction of debt associated with the power center sale, and based on higher interest rates on our debt and placing redevelopment assets in service during the preceding 12 months; and |
| • | Increased interest and other income of approximately $2.0 million, primarily as a result of $1.7 million in earned tax credits related to our historic rehabilitation of 801 Market Street, which is adjacent and connected to The Gallery at Market East in Philadelphia, Pennsylvania; and |
| • | Higher depreciation and amortization resulting from development and redevelopment assets that were placed in service during the preceding 12 months. |
Results for the nine months ended September 30, 2010 also included:
| • | Additional accelerated amortization of $2.3 million of deferred financing costs resulting from the permanent reduction of the 2010 Term Loan from the net proceeds of the May 2010 equity offering, for an aggregate accelerated amortization of $3.7 million for the period. |
Results for the three months ended September 30, 2009 included:
| • | A $4.2 million gain on extinguishment of debt resulting from repurchasing $12.0 million in aggregate principal amount of exchangeable notes; and |
| • | A $3.4 million non-FFO gain on sale of discontinued operations. |
Results for the nine months ended September 30, 2009 also included:
| • | An additional $9.8 million gain on extinguishment of debt resulting from two transactions to repurchase exchangeable notes, for an aggregate gain of $14.0 million for the period; and |
| • | A $1.7 million gain on sale of real estate, of which $0.9 million is a non-FFO gain. |
Retail Operations
The following tables set forth information regarding sales per square foot and occupancy in the Company’s retail portfolio, including properties owned by partnerships in which we own a 50% interest:
| Twelve Months Ended: | ||||
| September 30, 2010 | September 30, 2009 | |||
Sales per square foot(1) | $ 348 | $ 335 | ||
| (1) | Includes enclosed malls in the Company’s portfolio as of the respective dates. Based on sales reported by tenants leasing 10,000 square feet or less of non-anchor space for at least 24 months. |
| Occupancy as of: | ||||||||
| September 30, 2010 | September 30, 2009 | |||||||
Retail portfolio weighted average:(1) | ||||||||
Total including anchors | 90.2% | 88.9% | ||||||
Total excluding anchors | 85.7% | 84.0% | ||||||
Enclosed malls weighted average:(2) | ||||||||
Total including anchors | 89.5% | 88.9% | ||||||
Total excluding anchors | 84.5% | 83.8% | ||||||
Strip/power centers weighted average:(1) | 95.7% | 89.1% | ||||||
| (1) | Occupancy for the period ended September 30, 2009 was adjusted to exclude the five power centers that were sold in September 2010. |
| (2) | Including all tenants occupying space under an agreement with an initial term of less than one year, total enclosed mall occupancy was 91.1% and occupancy excluding anchors was 87.5%. Corresponding amounts in the prior year period were 90.6% and 87.2%, respectively. |
2010 Outlook
The Company is adjusting its estimates for net loss per diluted share and FFO per diluted share to account for the sale of five power centers. The revised estimates are as follows:
| Estimates Per Diluted Share | Lower End | Upper End | ||
FFO guidance | $ 1.80 | $ 1.85 | ||
Depreciation and amortization (includes the Company’s proportionate share of unconsolidated properties), net of other adjustments | (3.20) | (3.20) | ||
Gain on sale of discontinued operations | 0.36 | 0.36 | ||
Net loss attributable to PREIT | $ (1.04) | $ (0.99) |
Conference Call Information
Management has scheduled a conference call for 3:00 p.m. Eastern Time today, to review the Company’s third quarter results, market trends, and future outlook. To listen to the call, please dial (877) 941-2068 (domestic) or (480) 629-9712 (international), at least five minutes before the scheduled start time, and provide conference ID number 4375896. Investors can also access the call in a “listen only” mode via the Internet at the Company website,www.preit.com, or at www.viavid.net. Please allow extra time prior to the call to visit the site and download the necessary software to listen to the Internet broadcast. Financial and statistical information expected to be discussed on the call will also be available on the Company’s website.
For interested individuals unable to join the conference call, a replay of the call will be available through November 18, 2010 at (877) 870-5176 (domestic) or (858) 384-5517 (international), (Replay reservation number: 4375896). The online archive of the Internet broadcast will be available for 14 days following the call.
About Pennsylvania Real Estate Investment Trust
Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls. Currently, the Company’s portfolio consists of 49 properties, including 38 shopping malls, eight strip and power centers, and three development properties. The Company’s properties are located in 13 states in the eastern half of the United States, primarily in the Mid-Atlantic region. The operating retail properties have approximately 33 million total square feet of space. PREIT is headquartered in Philadelphia, Pennsylvania. The Company’s website can be found atwww.preit.com. PREIT is publicly traded on the NYSE under the symbol PEI.
Definitions
The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations (“FFO”), which is a non-GAAP measure, as income before gains (losses) on sales of operating properties and extraordinary items (computed in accordance with GAAP); plus real estate depreciation; plus or minus adjustments for unconsolidated partnerships to reflect funds from operations on the same basis.
FFO is a commonly used measure of operating performance and profitability in the real estate industry and we use FFO and FFO per diluted share and operating partnership unit as supplemental non-GAAP measures to compare our Company’s performance to that of our industry peers. Similarly, FFO per diluted share and OP Unit is a measure that is useful because it reflects the dilutive impact of outstanding convertible securities. In addition, we use FFO and FFO per diluted share and OP Unit as one of the performance measures for determining incentive compensation 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 or losses on the sale of operating real estate assets, which are included in the determination of net income in accordance with GAAP. Accordingly, FFO is not a comprehensive measure of our operating cash flows. In addition, since FFO does not include depreciation on real estate assets, FFO may not be a useful performance measure when comparing our operating performance to that of other non-real estate commercial enterprises. We compensate for these limitations by using FFO in conjunction with other GAAP financial performance measures, such as net income and net cash provided by operating activities, and other non-GAAP financial performance measures, such as net operating income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance, or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is it indicative of funds available for the Company’s cash needs, including its ability to make cash distributions.
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 operating real estate and depreciation and amortization of real estate.
Net operating income (“NOI”), which is a non-GAAP measure, is derived from real estate revenue (determined in accordance with GAAP) minus property operating expenses (determined in accordance with GAAP). 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, interest and other income, interest expense, depreciation and amortization, gains on sales of interests in real estate, gains on sales of discontinued operations, impairment losses, abandoned project costs, other expenses and gain on extinguishment of debt.
Forward Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREIT’s current views about future events and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. Moreover, PREIT’s business might be affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: PREIT’s substantial debt and high leverage ratio; constraining leverage, interest and tangible net worth covenants under the 2010 Credit Facility, as well as capital application provisions and limits on PREIT’s ability to pay distributions on its common shares; PREIT’s ability to refinance its existing indebtedness when it matures on favorable terms, or at all; PREIT’s ability to raise capital, including through the issuance of equity or equity-related securities if market conditions are favorable, through joint ventures or other partnerships, through sales of properties, or through other actions; PREIT’s short- and long-term liquidity position; the effects on PREIT of dislocations and liquidity disruptions in the capital and credit markets; the current economic downturn and its effect on employment, consumer confidence and consumer spending; tenant business and solvency and leasing decisions and the value and potential impairment of PREIT’s properties; and PREIT’s ability to maintain and increase property occupancy, sales and rental rates, including at recently redeveloped properties. Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the estimates set forth in press releases or other disclosures. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREIT’s Annual Report on Form 10-K for the year ended December 31, 2009. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.
[Financial tables to follow]
** Quarterly supplemental financial and operating **
** information will be available onwww.preit.com **
Pennsylvania Real Estate Investment Trust
Selected Financial Data
| CONSOLIDATED BALANCE SHEETS | �� | |||||||||||||||
| September 30, 2010 | December 31, 2009 | |||||||||||||||
(In thousands) | ||||||||||||||||
ASSETS: | ||||||||||||||||
INVESTMENTS IN REAL ESTATE, at cost: | ||||||||||||||||
Operating properties | $ | 3,404,454 | $ | 3,459,745 | ||||||||||||
Construction in progress | 157,885 | 215,231 | ||||||||||||||
Land held for development | 17,021 | 9,337 | ||||||||||||||
Total investments in real estate | 3,579,360 | 3,684,313 | ||||||||||||||
Accumulated depreciation | (707,963 | ) | (623,309 | ) | ||||||||||||
Net investments in real estate | 2,871,397 | 3,061,004 | ||||||||||||||
INVESTMENTS IN PARTNERSHIPS, at equity: | 27,661 | 32,694 | ||||||||||||||
OTHER ASSETS: | ||||||||||||||||
Cash and cash equivalents | 43,711 | 74,243 | ||||||||||||||
Tenant and other receivables (net of allowance for doubtful accounts of $22,494 and $19,981 at September 30, 2010 and December 31, 2009, respectively) | 34,832 | 55,303 | ||||||||||||||
Intangible assets (net of accumulated amortization of $175,027 and | 19,536 | 38,978 | ||||||||||||||
Deferred costs and other assets, net | 96,724 | 84,358 | ||||||||||||||
Total assets | $ | 3,093,861 | $ | 3,346,580 | ||||||||||||
LIABILITIES: | ||||||||||||||||
Mortgage loans (including debt premium of $1,859 and $2,744 at September 30, 2010 | ||||||||||||||||
and December 31, 2009, respectively) | $ | 1,749,622 | $ | 1,777,121 | ||||||||||||
Exchangeable notes (net of debt discount of $3,282 and $4,664 at September 30, 2010 | ||||||||||||||||
and December 31, 2009, respectively) | 133,618 | 132,236 | ||||||||||||||
Revolving Facilities | - | 486,000 | ||||||||||||||
Term Loans | 347,200 | 170,000 | ||||||||||||||
Tenants' deposits and deferred rent | 15,468 | 13,170 | ||||||||||||||
Distributions in excess of partnership investments | 43,893 | 48,771 | ||||||||||||||
Accrued construction expenses | 1,063 | 11,778 | ||||||||||||||
Fair value of derivative liabilities | 33,289 | 14,610 | ||||||||||||||
Accrued expenses and other liabilities | 57,826 | 58,090 | ||||||||||||||
Total liabilities | 2,381,979 | 2,711,776 | ||||||||||||||
EQUITY: | 711,882 | 634,804 | ||||||||||||||
Total liabilities and equity | $ | 3,093,861 | $ | 3,346,580 | ||||||||||||
Pennsylvania Real Estate Investment Trust
Selected Financial Data
| FUNDS FROM OPERATIONS | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
| September 30, 2010 | September 30, 2009 | September 30, 2010 | September 30, 2009 | |||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||
Net loss | $ | (3,672 | ) | $ | (10,119 | ) | $ | (45,824 | ) | $ | (25,860 | ) | ||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Gains on sales of interests of operating real estate | - | - | - | (923 | ) | |||||||||||||||||||||||
Gains on sales of discontinued operations | (19,151 | ) | (3,398 | ) | (19,151 | ) | (3,398 | ) | ||||||||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||||||||
Wholly owned and consolidated partnerships(a) | 41,331 | 39,758 | 121,518 | 116,312 | ||||||||||||||||||||||||
Unconsolidated partnerships(a) | 2,020 | 1,983 | 6,581 | 6,056 | ||||||||||||||||||||||||
Discontinued operations | 1,306 | 1,567 | 3,907 | 4,732 | ||||||||||||||||||||||||
FUNDS FROM OPERATIONS(b) | $ | 21,834 | $ | 29,791 | $ | 67,031 | $ | 96,919 | ||||||||||||||||||||
Accelerated amortization of deferred financing costs | 1,394 | - | 3,652 | - | ||||||||||||||||||||||||
Impairment of assets | - | - | - | 70 | ||||||||||||||||||||||||
Gain on extinguishment of debt | - | (4,167 | ) | - | (13,971 | ) | ||||||||||||||||||||||
FUNDS FROM OPERATIONS AS ADJUSTED | $ | 23,228 | $ | 25,624 | $ | 70,683 | $ | 83,018 | ||||||||||||||||||||
FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT | $ | 0.38 | $ | 0.67 | $ | 1.28 | $ | 2.29 | ||||||||||||||||||||
Accelerated amortization of deferred financing costs | 0.03 | - | 0.07 | - | ||||||||||||||||||||||||
Impairment of assets | - | - | - | - | ||||||||||||||||||||||||
Gain on extinguishment of debt | - | (0.09 | ) | - | (0.33 | ) | ||||||||||||||||||||||
FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT AS ADJUSTED | $ | 0.41 | $ | 0.58 | $ | 1.35 | $ | 1.96 | ||||||||||||||||||||
Weighted average number of shares outstanding | 54,200 | 42,195 | 49,435 | 40,144 | ||||||||||||||||||||||||
Weighted average effect of full conversion of OP Units | 2,329 | 2,329 | 2,329 | 2,248 | ||||||||||||||||||||||||
Effect of common share equivalents | 528 | - | 407 | - | ||||||||||||||||||||||||
Total weighted average shares outstanding, including OP Units | 57,057 | 44,524 | 52,171 | 42,392 | ||||||||||||||||||||||||
| a) | Excludes depreciation of non-real estate assets, amortization of deferred financing costs and discontinued operations. |
| b) | Includes the non-cash effect of straight-line rents of $315 and $465 for the third quarter 2010 and 2009, respectively and $1,194 and $1,228 for the nine months ended September 30, 2010 and 2009, respectively. |
| STATEMENTS OF OPERATIONS | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
| September 30, 2010 | September 30, 2009 | September 30, 2010 | September 30, 2009 | |||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||
REVENUE: | ||||||||||||||||||||||||||||
Real estate revenue: | ||||||||||||||||||||||||||||
Base rent | $ | 71,842 | $ | 70,926 | $ | 214,696 | $ | 211,515 | ||||||||||||||||||||
Expense reimbursements | 33,571 | 33,291 | 99,980 | 100,125 | ||||||||||||||||||||||||
Percentage rent | 767 | 918 | 2,292 | 2,378 | ||||||||||||||||||||||||
Lease termination revenue | 370 | 300 | 2,551 | 1,636 | ||||||||||||||||||||||||
Other real estate revenue | 3,301 | 3,270 | 9,762 | 9,982 | ||||||||||||||||||||||||
Interest and other income | 2,804 | 862 | 4,130 | 2,092 | ||||||||||||||||||||||||
Total revenue | 112,655 | 109,567 | 333,411 | 327,728 | ||||||||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
CAM and real estate tax | (35,683 | ) | (34,304 | ) | (107,183 | ) | (101,285 | ) | ||||||||||||||||||||
Utilities | (7,587 | ) | (6,769 | ) | (20,053 | ) | (18,561 | ) | ||||||||||||||||||||
Other operating expenses | (6,926 | ) | (6,760 | ) | (19,063 | ) | (19,156 | ) | ||||||||||||||||||||
Total operating expenses | (50,196 | ) | (47,833 | ) | (146,299 | ) | (139,002 | ) | ||||||||||||||||||||
Depreciation and amortization | (41,673 | ) | (40,240 | ) | (122,677 | ) | (117,951 | ) | ||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||
General and administrative expenses | (8,958 | ) | (9,583 | ) | (28,261 | ) | (28,436 | ) | ||||||||||||||||||||
Impairment of assets | - | - | - | (70 | ) | |||||||||||||||||||||||
Abandoned project costs, income taxes and other expenses | (558 | ) | (200 | ) | (1,012 | ) | (598 | ) | ||||||||||||||||||||
Total other expenses | (9,516 | ) | (9,783 | ) | (29,273 | ) | (29,104 | ) | ||||||||||||||||||||
Interest expense, net | (36,384 | ) | (32,961 | ) | (108,588 | ) | (97,774 | ) | ||||||||||||||||||||
Gain on extinguishment of debt | - | 4,167 | �� | - | 13,971 | |||||||||||||||||||||||
Total expenses | (137,769 | ) | (126,650 | ) | (406,837 | ) | (369,860 | ) | ||||||||||||||||||||
Loss before equity in income of partnerships and discontinued operations | (25,114 | ) | (17,083 | ) | (73,426 | ) | (42,132 | ) | ||||||||||||||||||||
Equity in income of partnerships | 1,855 | 2,355 | 6,894 | 7,531 | ||||||||||||||||||||||||
Gains on sales of real estate | - | - | - | 1,654 | ||||||||||||||||||||||||
Loss from continuing operations | (23,259 | ) | (14,728 | ) | (66,532 | ) | (32,947 | ) | ||||||||||||||||||||
Operating results from discontinued operations | 436 | 1,211 | 1,557 | 3,689 | ||||||||||||||||||||||||
Gains on sales of discontinued operations | 19,151 | 3,398 | 19,151 | 3,398 | ||||||||||||||||||||||||
Income from discontinued operations | 19,587 | 4,609 | 20,708 | 7,087 | ||||||||||||||||||||||||
Net loss | (3,672 | ) | (10,119 | ) | (45,824 | ) | (25,860 | ) | ||||||||||||||||||||
Less: Net loss attributed to noncontrolling interest | 87 | 477 | 1,928 | 1,215 | ||||||||||||||||||||||||
Net loss attributable to Pennsylvania Real Estate Investment Trust | (3,585 | ) | (9,642 | ) | (43,896 | ) | (24,645 | ) | ||||||||||||||||||||
Basic loss per share | ||||||||||||||||||||||||||||
Loss from continuing operations | $ | (0.42 | ) | $ | (0.34 | ) | $ | (1.30 | ) | $ | (0.80 | ) | ||||||||||||||||
Income from discontinued operations | 0.35 | 0.11 | 0.40 | 0.17 | ||||||||||||||||||||||||
| $ | (0.07 | ) | $ | (0.23 | ) | $ | (0.90 | ) | $ | (0.63 | ) | |||||||||||||||||
Diluted loss per share - Pennsylvania Real Estate Investment Trust(1) | ||||||||||||||||||||||||||||
Loss from continuing operations | $ | (0.42 | ) | $ | (0.34 | ) | $ | (1.30 | ) | $ | (0.80 | ) | ||||||||||||||||
Income from discontinued operations | 0.35 | 0.11 | 0.40 | 0.17 | ||||||||||||||||||||||||
| $ | (0.07 | ) | $ | (0.23 | ) | $ | (0.90 | ) | $ | (0.63 | ) | |||||||||||||||||
Weighted average number of shares outstanding for diluted EPS | 54,200 | 42,195 | 49,435 | 40,144 | ||||||||||||||||||||||||
| (1) | For the three and nine months ended September 30, 2010 and 2009, respectively, there are net losses, so the effect of common share equivalents is excluded from the calculation of diluted loss per share for these periods. |
Pennsylvania Real Estate Investment Trust
Selected Financial Data
| NET OPERATING INCOME | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
| September 30, 2010 | September 30, 2009 | September 30, 2010 | September 30, 2009 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Net loss | $ | (3,672 | ) | $ | (10,119 | ) | $ | (45,824 | ) | $ | (25,860 | ) | ||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||||
Wholly owned and consolidated partnerships | 41,673 | 40,240 | 122,677 | 117,951 | ||||||||||||||||||||||||
Unconsolidated partnerships | 2,020 | 1,983 | 6,581 | 6,056 | ||||||||||||||||||||||||
Discontinued operations | 1,306 | 1,567 | 3,907 | 4,732 | ||||||||||||||||||||||||
Interest expense, net | ||||||||||||||||||||||||||||
Wholly owned and consolidated partnerships | 36,384 | 32,961 | 108,588 | 97,774 | ||||||||||||||||||||||||
Unconsolidated partnerships | 2,566 | 1,918 | 6,002 | 5,448 | ||||||||||||||||||||||||
Discontinued operations | 674 | 628 | 1,926 | 1,572 | ||||||||||||||||||||||||
Other expenses | 9,516 | 9,783 | 29,273 | 29,104 | ||||||||||||||||||||||||
Gains on sales of interests in real estate | - | - | - | (1,654 | ) | |||||||||||||||||||||||
Gains on sales of discontinued operations | (19,151 | ) | (3,398 | ) | (19,151 | ) | (3,398 | ) | ||||||||||||||||||||
Gain on extinguishment of debt | - | (4,167 | ) | - | (13,971 | ) | ||||||||||||||||||||||
Interest and other income | (2,804 | ) | (862 | ) | (4,130 | ) | (2,092 | ) | ||||||||||||||||||||
Net operating income | $ | 68,512 | $ | 70,534 | $ | 209,849 | $ | 215,662 | ||||||||||||||||||||
Same store retail properties | $ | 65,967 | $ | 66,977 | $ | 202,043 | $ | 205,123 | ||||||||||||||||||||
Non-same store properties | 2,545 | 3,557 | 7,806 | 10,539 | ||||||||||||||||||||||||
Net operating income | $ | 68,512 | $ | 70,534 | $ | 209,849 | $ | 215,662 | ||||||||||||||||||||
| EQUITY IN INCOME OF PARTNERSHIPS | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
| September 30, 2010 | September 30, 2009 | September 30, 2010 | September 30, 2009 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Gross revenue from real estate | $ | 18,519 | $ | 18,210 | $ | 56,593 | $ | 55,400 | ||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
Operating expenses | (5,665 | ) | (5,746 | ) | (17,722 | ) | (17,460 | ) | ||||||||||||||||||||
Mortgage interest expense | (5,162 | ) | (3,867 | ) | (12,105 | ) | (10,991 | ) | ||||||||||||||||||||
Depreciation and amortization | (3,947 | ) | (3,863 | ) | (11,884 | ) | (11,603 | ) | ||||||||||||||||||||
Total expenses | (14,774 | ) | (13,476 | ) | (41,711 | ) | (40,054 | ) | ||||||||||||||||||||
Net income from real estate | 3,745 | 4,734 | 14,882 | 15,346 | ||||||||||||||||||||||||
Partners' share | (1,859 | ) | (2,350 | ) | (7,401 | ) | (7,630 | ) | ||||||||||||||||||||
Company's share | 1,886 | 2,384 | 7,481 | 7,716 | ||||||||||||||||||||||||
Amortization of excess investment | (31 | ) | (29 | ) | (587 | ) | (185 | ) | ||||||||||||||||||||
EQUITY IN INCOME OF PARTNERSHIPS | $ | 1,855 | $ | 2,355 | $ | 6,894 | $ | 7,531 | ||||||||||||||||||||
# # #