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

Exhibit 99.1

Supplemental Financial and Operating Information

March 31, 2020

www.preit.com

NYSE: PEI

NYSE: PEIPRB, PEIPRC, PEIPRD

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

March 31, 2020

Table of Contents
Introduction
Company Information	1
Earnings Release	2
Changes in Funds from Operations for the Three Months March 31, 2020	6
Market Capitalization and Capital Resources	7
Operating Results
Statements of Operations – Three Months Ended March 31, 2020 and 2019	8
Computation of Earnings Per Share	9
Reconciliation of Net Operating Income and EBITDAre – Three Months Ended March 31, 2020 and 2019	10
Reconciliation of Net Income (GAAP Measure) to Net Operating Income from Consolidated Properties (Non-GAAP Measure) -  Three Months Ended March 31, 2020 and 2019	11
Reconciliation of Equity in Income of Partnerships to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Three Months Ended March 31, 2020 and 2019	12
Reconciliation of Funds From Operations and Funds Available for Distribution – Three Months Ended March 31, 2020 and 2019	13
Condensed Consolidated Balance Sheet	15
Assets and Liabilities - Equity Method Investments, at Ownership Share	16
Operating Statistics
Leasing Activity Summary – Three Months Ended March 31, 2020	17
Summarized Sales and Rent Per Square Foot and Occupancy Percentages	18
Mall Occupancy Percentage and Sales Per Square Foot	19
Top Twenty Tenants	20
Lease Expirations	21
Property Information	22
Balance Sheet
Investment in Real Estate - Consolidated Properties	24
Investment in Real Estate - Equity Method Investments at Ownership Share	25
Anchor Replacement Summary	26
Property Redevelopment Table	27
Capital Expenditures – Three Months Ended March 31, 2020	28
Debt Analysis	29
Debt Schedule	31
Selected Debt Ratios	32
Forward Looking Statements	33
Definitions	34

Pennsylvania Real Estate Investment Trust

Company Information

Background

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT’s robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic’s top MSAs. PREIT is focused on enhancing the quality of its portfolio through redevelopment, anchor repositioning, diversifying its tenant mix and densifying properties by adding a mix of uses.  Since 2012, the Company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures. The portfolio consists of 26 retail properties, 25 of which are operating properties and one is a development property. The 25 operating retail properties have a total of 20.3 million square feet and include 21 shopping malls and four other retail properties.

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

Heather Crowell

EVP, Strategy and Communications

One Commerce Square

2005 Market Street, Suite 1000

Philadelphia, PA 19103

Telephone: (215) 875-0735

Fax: (215) 546-2504

Email: Heather.Crowell@preit.com

Research Coverage
Company	Analyst	Phone Number
Citi Investment Research	Michael Bilerman Christy McElroy	(212) 816-1383 (212) 816-6981
Goldman Sachs & Co. LLC	Caitlin Burrows	(212) 902-4736
JP Morgan	Michael W. Mueller	(212) 622-6689
Stifel Nicolaus	Simon Yarmak	(443) 224-1346
SunTrust Robinson Humphrey	Ki Bin Kim	(212) 303-4124

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

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CONTACT: AT THE COMPANY

Mario Ventresca

EVP & CFO

(215) 875-0703

Heather Crowell

EVP, Strategy and Communications

(215) 454-1241

heather.crowell@preit.com

PREIT Reports First Quarter 2020 Results and Business Update

Core Mall NOI-Weighted Sales per square foot Reached $551 through February

Average Renewal Spreads for Wholly-Owned Properties were 4.5%

Total Leased Space Stable at 94.0%

Progressing with Mall Re-openings

Philadelphia, May 21, 2020 - PREIT (NYSE: PEI) today reported results for the three months ended March 31, 2020.  A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is located in the tables accompanying this release.

	Three Months Ended March 31,
(per share amounts)	2020			2019
Net loss - basic and diluted	$	(0.26	)	$	(0.30	)
FFO	$	0.14		$	0.17
FFO, as adjusted	$	0.14		$	0.26
FFO from assets sold in 2019	$	-		$	(0.01	)
FFO, as adjusted for assets sold	$	0.14		$	0.25

“As we slowly emerge from an unprecedented environment, we are focused on ensuring the safety and well-being of our associates and communities while enhancing near-term liquidity with a laser-focus on improving our balance sheet to position PREIT for long-term success,” said Joseph F. Coradino, Chairman and CEO of PREIT. “The PREIT team has been resilient and courageous as we navigate this challenging environment.  We have pivoted quickly, making difficult decisions and focusing our efforts on supporting our communities of tenants, shoppers, retail employees and our staff.”

Coradino added, “PREIT was among the first companies in our sector to embark on a proactive effort to improve our portfolio through asset sales and anchor repositioning and redevelopment, completing the program ahead of industry peers and in advance of the COVID-19 pandemic.  We believe our properties are well-positioned with mass-market offerings appealing to a value-focused shopper.  These properties, with prime locations in their respective markets, are dominant retail hubs and we believe they will ultimately gain market share as they re-open.”

• Same Store NOI, excluding lease termination revenue, decreased 9.6% for the three months ended March 31, 2020 compared to March 31, 2019.  

• The quarter was impacted by a decrease in revenue of $5.6 million primarily resulting from bankruptcies and related store closings, an increase in credit losses for challenged tenants prior to the COVID-19 pandemic as well as decreased percentage sales revenue resulting from mall closures related to the COVID-19 pandemic. This was partially offset by incremental revenues from anchor replacements and other leasing activity of $0.7 million in the quarter.

• Same Store NOI, excluding lease termination revenue, decreased 5% through February, in line with prior expectations.

• NOI-weighted sales at our Core Malls increased to $551 per square foot.  Core Mall sales per square foot reached $542, a 4.8% increase over the prior year.  Average comparable sales per square foot at our top six properties rose 4.8% over the prior year to $651 with two properties generating sales over $700 per square foot.    Sales data is for the trailing twelve

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months ended February 29, 2020, the last full month of operations, for comparability purposes in light of the widespread COVID-19 related mall closures in March 2020.

• Core Mall total occupancy was 92.9%, a decrease of 180 basis points compared to March 31, 2019. Core Mall non-anchor occupancy declined by only 120 basis points from last year despite the impact from bankruptcies and chain liquidations that resulted in 71 store closures for an aggregate 274,000 square feet during the year ended December 31, 2019.

• Non-anchor Leased space, at 92.0%, exceeds occupied space by 170 basis points when factoring in executed new leases slated for future occupancy, excluding Fashion District Philadelphia.

• Average renewal spreads for the quarter in our wholly-owned portfolio reflected a 5.2% increase for spaces less than 10,000 square feet and 4.5% overall.   Average renewal spreads for the entire portfolio were negative 1.6% for the quarter when joint venture properties are included.

• As part of the Company’s plan to improve liquidity during the COVID-19 crisis, we have initiated certain corporate actions including, but not limited to: staff furloughs, reducing the common dividend from $0.21 per share to $0.02 per share, a reduction in forecast capital expenditures of approximately $25.0 million, a reduction in forecast corporate G&A of $3.1 million, reduced property operating expenses during the closure period,  achieved deferral on approximately $11.6 million in real estate tax payments and received forbearance on several mortgage payments.

• The Company continues to make progress on liquidity-generating capital transactions including its multifamily and hotel land sales, its outparcel sales and the multi-property sale-leaseback transaction.  Timing of closing on many of these transactions is now expected to be later than previously forecast with details noted later in this release.

• As part of PREIT’s plan, during the quarter, the Company executed amendments to its Senior Credit Facilities.  The Company continues its discussions with lenders to put in place a longer-term financing solution before September 30, 2020.  

Leasing and Redevelopment

• Excluding Fashion District Philadelphia, 267,000 square feet of leases are signed for 2020 openings, which is expected to contribute annual gross rent of $11.3 million.

• During the first quarter, the following anchor replacement tenants opened: Dick’s Sporting Goods at Valley Mall, Burlington at Dartmouth Mall, Michael’s at Plymouth Meeting and Moorestown Malls.

Mall Re-openings and Community Support Initiatives

• Currently, the Company has re-opened three enclosed malls and plans to re-open a fourth on Friday, May 22, 2020.  

• Details on the re-opening schedule and the new safety and social distancing protocols the Company is employing at its managed properties can be found here.

• Across its portfolio, the Company has hosted blood drives and food donation drives, provided meals to area essential workers, and donated much needed protective supplies. Read more about our efforts here.

• PREIT has continued to support the businesses that were able to remain open during the pandemic through several avenues including social media support highlighting dining establishments and other contactless pickup options at our properties as well as ecommerce platforms for certain retailers.

• Shop Local webpages were developed by PREIT, aggregating ecommerce sites for all the small businesses throughout our portfolio. The offerings highlighted not only to the local audience, but to customers of the entire PREIT portfolio, leveraging the Company’s marketing power for local business partners.

• Through PREIT’s SBA resources page and contact with tenants, the Company has continued to provide resources for smaller business to access the liquidity needed to make it through this challenging time.

• PREIT’s mall websites now include job portals  to collect information to pass along to our retail partners.

Primary Factors Affecting Financial Results for the Three Months Ended March 31, 2020 and 2019:

• Net loss attributable to PREIT common shareholders was $13.5 million, or $0.26 per basic and diluted share for the three months ended March 31, 2020, compared to net loss attributable to PREIT common shareholders of $16.2 million, or $0.30 per basic and diluted share for the three months ended March 31, 2019. 

• Same Store NOI decreased by $5.3 million, or 10.1%.  The decrease is primarily due to lost revenues from bankrupt tenants, an increase in credit losses and a decrease in percentage of sales revenue due to COVID-19 related mall closures, partially offset by new store openings, including contributions from replacement anchors.  Lease termination revenue was $0.3 million less than the prior year’s quarter.

• Non Same Store NOI decreased by $2.4 million, primarily due to the conveyance of Wyoming Valley Mall to the lender of the mortgage loan secured by that property in 2019 and; anchor closings as well as associated co-tenancy rents, decrease in other non-recurring revenue compared to the first quarter of 2019 and the sale of the Whole Foods parcel at Exton Square in 2019.

• FFO for the three months ended March 31, 2020 was $0.14 per share and OP Unit compared to $0.17 per diluted share and OP Unit for the three months ended March 31, 2019.  Adjustments to FFO in the first quarter of 2020 were less than $0.01 per share of provision for employee separation expenses. Adjustments to FFO in the 2019 quarter included $0.06 per share of loss on debt extinguishment, $0.01 per share of provision for employee separation expenses and $0.02 per share of impairment of development land parcels.

• General and administrative expenses decreased by $0.5 million compared to the first quarter of 2019 due to lower payroll and incentive compensation expenses.

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All NOI and FFO amounts referenced as primary factors affecting financial results above include our share of unconsolidated properties’ revenues and expenses.  Additional information regarding changes in operating results for the three months ended March 31, 2020 and 2019 is included on page 16.

Asset Dispositions

The Company executed agreements of sale for remaining expected gross proceeds of $281.0 million as detailed below.

Sale/Leaseback: In February 2020, the Company entered into an agreement of sale for the sale and leaseback of five properties for $153.6 million.  Structured as a 99-year lease with an option to repurchase, the agreement   provides for release of parcels related to multifamily development and is subject to ongoing lease payments at 7% ($10.75 million) with annual 1.25% escalations.  Closing on the transaction is subject to customary closing conditions, including due diligence provisions and is forecast for late in the year.

Multifamily Land Parcels: The Company has three executed agreements of sale for land parcels for anticipated multifamily development in the amount of $107.3 million.  The agreements are with three different buyers across five properties for 2,650 units as part of Phase I of the Company’s previously announced multifamily land sale plan.  Closing on the transactions is subject to customary due diligence provisions and securing entitlements.  One buyer for two other land parcels had terminated its agreement and PREIT has now executed letters of intent with another buyer.

Outparcels: The Company has executed an agreement of sale with Four Corners Property Trust for 14 outparcels, which we expect to generate $29.9 million in total proceeds.  To date, the Company has closed on the sale of six of the parcels, totaling $13.4 million in proceeds.  The remaining 8 outparcels are expected to close late in the second quarter or early in the third quarter of 2020 and are subject to customary due diligence provisions.

Hotel Parcels: The Company has executed two agreements of sale to convey land parcels for anticipated hotel development in the amount of $3.75 million.  The agreements are with two separate buyers for approximately 250 rooms.  Closings on the transactions are subject to customary due diligence provisions and securing entitlements.

Retail Operations

The following table sets forth information regarding sales per square foot in the Company’s mall portfolio, including unconsolidated properties:

A reconciliation of portfolio sales per square foot ⁽¹⁾ for the Core Mall portfolio can be found below:

Comp store sales for the rolling twelve months ended March 31, 2019	$	499
Organic sales growth		30
Impact of non-core malls		13
Comp store sales for the rolling twelve months ended February 29, 2020 (2)	$	542
(1) Based on reported sales by all comparable non-anchor tenants that lease individual spaces of less than 10,000 square feet and have occupied the space for at least 24 months.
(2) Reported through February 29, 2020 due to COVID-19 pandemic related property closures for partial month of March 2020.

2020 Outlook

On March 31, 2020, the Company withdrew its financial outlook for 2020 provided in its February 25, 2020 earnings press release.

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Conference Call Information

Management has scheduled a conference call for 1:00 p.m. Eastern Time on Thursday,
May 21, 2020, to review the Company’s results and future outlook.  To listen to the call, please dial 1-844-885-9139 (domestic toll free), or 1-647-689-4441 (international), and request to join the PREIT call, Conference ID  6664627, at least five minutes before the scheduled start time.  Investors can also access the call in a "listen only" mode via the internet at the Company’s website, preit.com.  Please allow extra time prior to the call to visit the site and download the necessary software to listen to the Internet broadcast.  Financial and statistical information expected to be discussed on the call will also be available on the Company’s website.

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

About PREIT

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT’s robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic’s top MSAs. Since 2012, the Company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures. Additional information is available at www.preit.com or on Twitter or LinkedIn.

Rounding

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

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Pennsylvania Real Estate Investment Trust

Changes in Funds from Operations

for the Three Months Ended March 31, 2020 as compared to the Three Months Ended March 31, 2019

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

(in thousands, except per share amounts)	Three Months Ended March 31, 2020			Per Diluted Share and OP Unit
Funds from Operations, as adjusted March 31, 2019	$	20,655		$	0.26
Changes - Q1 2019 to Q1 2020
Other leasing activity, including base rent and net CAM and real estate tax recoveries		(3,166	)		(0.040	)
Lease termination revenue		(288	)		(0.005	)
Credit losses		(1,345	)		(0.015	)
Other		(42	)		-
Same Store NOI from unconsolidated properties		(440	)		(0.005	)
Same Store NOI		(5,281	)		(0.065	)
Non Same Store NOI		(2,434	)		(0.030	)
Dilutive effect of asset sales		(473	)		(0.005	)
General and administrative expenses		666			0.010
Capitalization of leasing costs		(156	)		-
Gain on sales of non-operating real estate		(609	)		(0.010	)
Other		170			-
Interest expense, net		(1,266	)		(0.015	)
Increase in weighted average shares		-			(0.005	)
Funds from Operations, as adjusted March 31, 2020	$	11,272		$	0.14
Provision for employee separation expense		(73	)		-
Funds from Operations March 31, 2020	$	11,199		$	0.14

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Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands)

	March 31, 2020			December 31, 2019
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding		78,840			77,550
OP Units Outstanding		2,023			2,023
Total Common Shares and OP Units Outstanding		80,863			79,573
Equity Market Capitalization—Common Shares and OP Units	$	73,585		$	424,124
Series B Preferred Shares, Nominal Value		86,250			86,250
Series C Preferred Shares, Nominal Value		172,500			172,500
Series D Preferred Shares, Nominal Value		125,000			125,000
Total Equity Market Capitalization	$	457,335		$	807,874
DEBT CAPITALIZATION
Secured Debt Balance (1)	$	1,275,645		$	1,280,208
Unsecured Debt Balance (2) (3)		839,000			805,000
Debt Capitalization	$	2,114,645		$	2,085,208
TOTAL MARKET CAPITALIZATION	$	2,571,980		$	2,893,082
Equity Capitalization/Total Market Capitalization		17.8	%		27.9	%
Debt Capitalization/Total Market Capitalization		82.2	%		72.1	%
Unsecured Debt Balance/Total Debt		39.7	%		38.6	%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	16,302		$	26,922
Revolving Facility		400,000			400,000
Amount Outstanding		(289,000	)		(255,000	)
Available Revolving Facility (4)	$	111,000		$	145,000
Term Loans		700,500			700,500
Amount Borrowed		(700,500	)		(700,500	)
Available Term Loans	$	-		$	-
TOTAL	$	127,302		$	171,922
Shelf Registration	$	500,000		$	1,000,000

⁽¹⁾ Includes consolidated mortgage debt, our share of mortgage debt from equity method investments, and $150,500 of secured debt from our share of the FDP Term Loan.

⁽²⁾ The unsecured debt balance includes a 2018 Revolving Facility balance of $289,000 as of March 31, 2020and $255,000 as of December 31, 2019.

⁽³⁾ The unsecured debt balance includes a Term Loan balance of $550,000 as of March 31, 2020 and December 31, 2019, respectively.

⁽⁴⁾ The available Credit Facility borrowings are subject to covenants that may restrict amounts that can be borrowed. Following recent property sales and the amendments of our Credit Agreements on March 30, 2020, the NOI from the Company’s remaining unencumbered properties is at a level such that the incremental unsecured amount available for the Company to borrow as of March 31, 2020 within the Unencumbered Debt Yield covenant, under the $375.0 million 2018 Revolving Facility, was an aggregate of $65.3 million.

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Pennsylvania Real Estate Investment Trust

Statement of Operations – Three Months Ended March 31, 2020 and 2019

	Three Months Ended March 31,
(in thousands of dollars)	2020			2019
REVENUE:
Real estate revenue:
Lease revenue	$	67,721		$	76,615
Expense reimbursements		4,305			5,062
Other real estate revenue		1,924			3,001
Total real estate revenue		73,950			84,678
Other income		293			627
Total revenue		74,243			85,305
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes		(27,517	)		(29,403	)
Utilities		(2,922	)		(3,660	)
Other property operating expenses		(2,098	)		(2,065	)
Total property operating expenses		(32,537	)		(35,128	)
Depreciation and amortization		(30,269	)		(34,904	)
General and administrative expenses		(10,695	)		(11,205	)
Provision for employee separation expenses		(73	)		(719	)
Insurance recoveries, net		-			(236	)
Project costs and other expenses		(95	)		(58	)
Total operating expenses		(73,669	)		(82,250	)
Interest expense, net(1)		(16,858	)		(15,898	)
Loss on debt extinguishment, net		-			(4,768	)
Impairment of development land parcel		-			(1,464	)
Total expenses		(90,527	)		(104,380	)
Loss before equity in income of partnerships, gain on sales of real estate by equity method investee, gain on sales of real estate, net, and adjustment to loss on sales of interests in non operating real estate		(16,284	)		(19,075	)
Equity in income of partnerships(2)		819			2,289
Gain on sales of real estate by equity method investee		-			563
Gain on sales of real estate, net		1,962			-
Loss on sales of interests in non operating real estate		(46	)		-
Net loss		(13,549	)		(16,223	)
Less: net loss attributable to noncontrolling interest		516			1,688
Net loss attributable to PREIT		(13,033	)		(14,535	)
Less: preferred share dividends		(6,844	)		(6,844	)
Net loss attributable to PREIT common shareholders	$	(19,877	)	$	(21,379	)

⁽¹⁾ Net of capitalized interest expense of $910 and $2,004 for the three months ended March 31, 2020 and 2019, respectively.

⁽²⁾ Equity in income of partnerships is net of capitalized interest expense of $1,091 and $1,472 for the three months ended March 31, 2020 and 2019, respectively.

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Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share – Three Months Ended March 31, 2020 and 2019

(in thousands, except per share amounts)

	Three Months Ended March 31,
(in thousands, except per share amounts)	2020			2019
Net loss	$	(13,549	)	$	(16,223	)
Noncontrolling interest		516			1,688
Preferred share dividends		(6,844	)		(6,844	)
Dividends on unvested restricted shares		(350	)		(218	)
Net loss used to calculate loss per share—basic and diluted	$	(20,227	)	$	(21,597	)
Basic and diluted income (loss) per share:	$	(0.26	)	$	(0.30	)
(in thousands of shares)
Weighted average shares outstanding—basic		76,774			71,358
Effect of common share equivalents(1)		—			—
Weighted average shares outstanding—diluted		76,774			71,358
(1) The Company had net losses used to calculate earnings per share for all periods presented.  Therefore, the effects of common share equivalents of 520 and 309 for the three months ended March 31, 2020 and 2019, respectively, are excluded from the calculation of diluted loss per share for these periods because they would be antidilutive.

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Pennsylvania Real Estate Investment Trust

Reconciliation of Net Operating Income and Earnings Before Interest, Income Taxes, Depreciation, and Amortization for Real Estate– Three Months Ended March 31, 2020 and 2019 (Non-GAAP Measures)

(in thousands)

Net Operating Income ("NOI") Reconciliation for the Three Months Ended March 31, 2020⁽¹⁾

	Same Store				Change						Non Same Store					Total
	2020		2019		$			%			2020		2019			2020		2019
NOI from consolidated properties	$	40,430	$	45,271	$	(4,841	)		-10.7	%	$	983	$	4,278		$	41,413	$	49,549
NOI attributable to equity method investments, at ownership share		6,612		7,052		(440	)		-6.2	%		832		(29	)		7,444		7,023
Total NOI		47,042		52,323		(5,281	)		-10.1	%		1,815		4,249			48,857		56,572
Less: lease termination revenue		9		300		(291	)		-97.0	%		-		16			9		316
Total NOI excluding lease termination revenue	$	47,033	$	52,023	$	(4,990	)		-9.6	%	$	1,815	$	4,233		$	48,848	$	56,256

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

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

	Three Months Ended March 31,
	2020			2019
Net loss	$	(13,549	)	$	(16,223	)
Depreciation and amortization:
Consolidated		30,269			34,904
Unconsolidated properties at ownership share		3,610			1,970
Interest expense:
Consolidated		16,858			15,898
Unconsolidated properties at ownership share		2,969			2,663
Gain on sales of real estate by equity method investee		-			(563	)
Gain on sales of interests in real estate, net		(1,962	)		-
Gain on debt extinguishment, net		-			4,768
Impairment of development land parcel		-			1,464
EBITDAre	$	38,195		$	44,881

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

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Pennsylvania Real Estate Investment Trust

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

Three Months Ended March 31, 2020 and 2019

(in thousands)

	Three Months Ended March 31,
	2020			2019
Net loss	$	(13,549	)	$	(16,223	)
Other income		(293	)		(628	)
Depreciation and amortization		30,269			34,904
General and administrative expenses		10,695			11,205
Insurance recoveries, net		-			236
Provision for employee separation expenses		73			719
Project costs and other expenses		95			58
Interest expense, net		16,858			15,898
Equity in income of partnerships		(819	)		(2,289	)
Gain on debt extinguishment, net		-			4,768
Impairment of development land parcel		-			1,464
Gain on sales of real estate by equity method investee		-			(563	)
Gain on sales of interests in real estate, net		(1,962	)		-
Loss on sales of interest in non operating real estate		46			-
NOI from consolidated properties(1)	$	41,413		$	49,549

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

	Same Store						Non Same Store						Total
	2020			2019			2020			2019			2020			2019
Real estate revenue
Base rent	$	48,480		$	50,387		$	2,568		$	5,498		$	51,048		$	55,885
CAM reimbursement income		9,666			10,671			502			974			10,168			11,645
Real estate tax income		8,318			8,981			178			559			8,496			9,540
Percentage rent		16			1			3			8			19			9
Lease termination revenue		9			297			-			16			9			313
		66,489			70,337			3,251			7,055			69,740			77,392
Less: credit losses		(1,892	)		(547	)		(127	)		(230	)		(2,019	)		(777	)
Lease revenue		64,597			69,790			3,124			6,825			67,721			76,615
Expense reimbursements		4,012			4,420			293			642			4,305			5,062
Other real estate revenue		1,785			1,769			139			1,232			1,924			3,001
Total real estate revenue		70,394			75,979			3,556			8,699			73,950			84,678
Property operating expenses
CAM and real estate taxes		(25,397	)		(25,729	)		(2,120	)		(3,674	)		(27,517	)		(29,403	)
Utilities		(2,679	)		(3,149	)		(243	)		(511	)		(2,922	)		(3,660	)
Other property operating expenses		(1,888	)		(1,830	)		(210	)		(236	)		(2,098	)		(2,066	)
Total property operating expenses		(29,964	)		(30,708	)		(2,573	)		(4,421	)		(32,537	)		(35,129	)
NOI from consolidated properties(1)	$	40,430		$	45,271		$	983		$	4,278		$	41,413		$	49,549
Less: Lease termination revenue		9			297			-			16			9			313
NOI from consolidated properties excluding lease termination revenue(1)	$	40,421		$	44,974		$	983		$	4,262		$	41,404		$	49,236
% change in Same Store NOI from consolidated properties excluding lease termination revenue				(10.1%)

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

11

Pennsylvania Real Estate Investment Trust

Reconciliation of Equity in Income of Partnerships to Net Operating Income from Equity Method Investments, at Ownership Share

(Non-GAAP Measure)

Three Months Ended March 31, 2020 and 2019

(in thousands)

	Three Months Ended March 31,
	2020			2019
Equity in income of partnerships	$	819		$	2,289
Other income		(14	)		(12	)
Depreciation and amortization		3,610			1,970
Interest expense and other expenses, net		3,029			2,776
NOI from equity method investments at ownership share(1)	$	7,444		$	7,023

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

	Same Store						Non Same Store						Total
	2020			2019			2020			2019			2020				2,019
Real estate revenue
Base rent	$	6,413		$	6,719		$	1,430		$	172		$	7,843		$	6,891
CAM reimbursement income		1,445			1,684			583			7			2,028			1,691
Real estate tax income		977			943			108			43			1,085			986
Percentage rent		57			46			20			-			77			46
Lease termination revenue		-			3			-			-			-			3
		8,892			9,395			2,141			222			11,033			9,617
Less: credit losses		(171	)		(66	)		(162	)		(2	)		(333	)		(68	)
Lease revenue		8,721			9,329			1,979			220			10,700			9,549
Expense reimbursements		435			451			156			41			591			492
Other real estate revenue		197			280			611			171			808			451
Total real estate revenue		9,353			10,060			2,746			432			12,099			10,492
Property operating expenses
CAM and real estate taxes		(2,051	)		(2,271	)		(1,539	)		(366	)		(3,590	)		(2,637	)
Utilities		(178	)		(203	)		(138	)		(45	)		(316	)		(248	)
Other property operating expenses		(512	)		(534	)		(237	)		(50	)		(749	)		(584	)
Total property operating expenses		(2,741	)		(3,008	)		(1,914	)		(461	)		(4,655	)		(3,469	)
NOI from equity method investments at ownership share(1)	$	6,612		$	7,052		$	832		$	(29	)	$	7,444		$	7,023
Less: Lease termination revenue		-			3			-			-			-			3
NOI from equity method investments at ownership share excluding lease termination revenue(1)	$	6,612		$	7,049		$	832		$	(29	)	$	7,444		$	7,020
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				(6.2%)

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

12

Pennsylvania Real Estate Investment Trust

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

Three Months Ended March 31, 2020 and 2019

(in thousands, except per share amounts)

	Three Months Ended March 31,
	2020			2019
FUNDS FROM OPERATIONS
Net loss	$	(13,549	)	$	(16,223	)
Depreciation and amortization on real estate
Consolidated properties		29,944			34,565
PREIT's share of equity method investments		3,610			1,970
Gain on sales of real estate by equity method investee		-			-
Gain on sales of interests in real estate, net		(1,962	)		-
Impairment of assets		-			-
Dividends on preferred shares		(6,844	)		(6,844	)
Funds from operations attributable to common shareholders and OP Unit holders(1)	$	11,199		$	13,468
Insurance recoveries, net		-			236
Loss on debt extinguishment, net		-			4,768
Impairment of development land parcel		-			1,464
Provision for employee separation expenses		73			719
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders	$	11,272		$	20,655

FUNDS AVAILABLE FOR DISTRIBUTION(1)
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders(1)	$	11,272		$	20,655
Adjustments:
Straight line rent		(1,013	)		(1,589	)
Recurring capital expenditures		(1,034	)		(2,013	)
Tenant allowances		(1,017	)		(2,070	)
Amortization of non-cash deferred compensation		1,624			1,922
Capitalized leasing costs		(164	)		(320	)
Amortization of above- and below-market lease intangibles		(17	)		(14	)
Funds available for distribution to common shareholders and OP Unit holders(1)	$	9,651		$	16,571
Funds from operations attributable to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	0.14		$	0.17
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit	$	0.14		$	0.26
Funds available for distribution to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	0.12		$	0.21

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

(Continued on next page)

13

Pennsylvania Real Estate Investment Trust

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

Three Months Ended March 31, 2020 and 2019

(in thousands, except per share amounts)

	Three Months Ended March 31,
	2020			2019
PAYOUT RATIOS (2)
Payout ratio of funds from operations attributable to common shareholders and OP Unit holders		64.6	%		64.0	%
Payout ratio of funds from operations attributable to common shareholders and OP Unit holders, as adjusted		90.4	%		55.4	%
Payout ratio of funds available for distribution attributable to common shareholders and OP Unit holders		144.6	%		97.5	%
Weighted average number of shares outstanding		76,774			71,358
Weighted average effect of full conversion of OP Units		2,023			6,884
Effect of common share equivalents		520			309
Total weighted average shares outstanding, including OP Units		79,317			78,551

⁽²⁾ Twelve months ended March 31, 2020 and 2019, respectively. When using the annualized amount of the recently declared quarterly dividend of $0.02 per common share, the FFO Payout ratio, FFO, as adjusted Payout ratio, and FAD Payout ratio would be 6.2%, 8.6% and 13.8%, respectively, for the three months ended March 31, 2020.

14

Pennsylvania Real Estate Investment Trust

Condensed Consolidated Balance Sheet

	March 31, 2020			December 31, 2019
(in thousands, except per share amounts)	(Unaudited)
ASSETS:
INVESTMENTS IN REAL ESTATE, at cost:
Operating properties	$	3,140,293		$	3,099,034
Construction in progress		81,485			106,011
Land held for development		5,881			5,881
Total investments in real estate		3,227,659			3,210,926
Accumulated depreciation		(1,230,657	)		(1,202,722	)
Net investments in real estate		1,997,002			2,008,204
INVESTMENTS IN PARTNERSHIPS, at equity:		167,167			159,993
OTHER ASSETS:
Cash and cash equivalents		5,351			12,211
Tenant and other receivables		36,929			41,261
Intangible assets (net of accumulated amortization of $17,733 and $18,248 at    March 31, 2020 and December 31, 2019, respectively)		12,846			13,404
Deferred costs and other assets, net		98,110			103,688
Assets held for sale		6,536			12,506
Total assets	$	2,323,941		$	2,351,267
LIABILITIES:
Mortgage loans payable, net	$	896,495		$	899,753
Term Loans, net		548,216			548,025
Revolving Facilities		289,000			255,000
Tenants’ deposits and deferred rent		5,918			13,006
Distributions in excess of partnership investments		85,770			87,916
Fair value of derivative liabilities		31,695			13,126
Accrued expenses and other liabilities		94,882			107,016
Total liabilities		1,951,976			1,923,842
COMMITMENTS AND CONTINGENCIES:
EQUITY:
Total equity		371,965			427,425
Total liabilities and equity	$	2,323,941		$	2,351,267

15

Pennsylvania Real Estate Investment Trust

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

(in thousands)

	March 31,
(in thousands of dollars)	2020			2019
ASSETS:
Investments in real estate, at cost:
Operating properties	$	452,012		$	276,067
Construction in progress		117,551			222,716
Total investments in real estate		569,563			498,783
Accumulated depreciation		(116,923	)		(106,918	)
Net investments in real estate		452,640			391,865
Cash and cash equivalents		10,952			16,561
Deferred costs and other assets, net		51,054			15,140
Total assets		514,646			423,566
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		224,800			231,297
FDP Term Loan		150,500			125,000
Other liabilities		57,949			8,701
Total liabilities		433,249			364,998
Net investment	$	81,397		$	58,568
Reconciliation to comparable GAAP balance sheet item:
Investment in partnerships, at equity	$	167,167		$	149,795
Distributions in excess of partnership investments		(85,770	)		(91,227	)
Net investment	$	81,397		$	58,568

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

To derive the proportionate financial information reflected in the tables above we multiplied the percentage of our economic interest in each partnership on a property-by-property basis by each line item. Under the partnership agreements relating to our current unconsolidated partnerships with third parties, we own a 25% to 50% economic interest in such partnerships, and there are generally no provisions in such partnership agreements relating to special non-pro rata allocations of income or loss, and there are no preferred or priority returns of capital or other similar provisions. While this method approximates our indirect economic interest in our pro rata share of the assets and liabilities of our unconsolidated partnerships, we do not control these partnerships or have a direct legal claim to the assets, liabilities, revenues or expenses of the unconsolidated partnerships beyond our rights as an equity owner in the event of any liquidation of such entity. Our percentage ownership is not necessarily indicative of the legal and economic implications of our ownership interest.

16

Pennsylvania Real Estate Investment Trust

Leasing Activity Summary – Three Months Ended March 31, 2020

		Number		GLA		Term		Initial Rent per square foot ("psf")		Previous Rent psf		Initial Gross Rent Renewal Spread(1)						Average Rent Renewal Spread(2)			Annualized Tenant Improvements psf(3)
												$			%			%
Non Anchor
New Leases
Under 10k square feet ("sf")	Consolidated		26		59,010		6.8	$	40.62	N/A		N/A			N/A			N/A			$	9.52
	Unconsolidated(4)		2		6,581		6.0		47.63	N/A		N/A			N/A			N/A				6.76
Total Under 10k sf			28		65,591		6.7	$	41.32	N/A		N/A			N/A			N/A			$	9.27
Total New Leases			28		65,591		6.7	$	41.32	N/A		N/A			N/A			N/A			$	9.27
Renewal Leases
Under 10k sf	Consolidated		48		126,556		3.0	$	54.22	$	54.95	$	(0.73	)		(1.3	%)		5.2	%	$	0.01
	Unconsolidated(4)		7		23,971		2.1	$	34.63	$	52.22		(17.59	)		(33.7	%)		(34.2	%)		-
Total Under 10k sf			55		150,527		2.8	$	51.10	$	54.52	$	(3.41	)		(6.3	%)		(1.3	%)	$	0.01
Total Over 10k sf	Consolidated		1		11,344		2.0		26.45		28.98		(2.53	)		(8.7	%)		(8.7	%)		-
Total Fixed Rent			56		161,871		2.8	$	49.37	$	52.73	$	(3.35	)		(6.4	%)		(1.6	%)	$	0.01
Total Percentage in Lieu	Consolidated		11		17,719		1.2		53.00		90.92		(37.92	)		(41.7	%)	N/A				-
Total Renewal Leases (4)			67		179,590		2.6	$	49.73	$	56.49	$	(6.76	)		(12.0	%)				$	0.02
Total Non Anchor			95		245,181		3.7	$	47.48

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

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

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

⁽⁴⁾ We own a 25% to 50% interest in each of our unconsolidated properties and do not control such properties. Our percentage ownership is not necessarily indicative of the legal and economic implications of our ownership interest. See “—Non-GAAP Supplemental Financial Measures” in our Annual Report on Form 10-K for the year ended December 31, 2019 for further details on our ownership interests in our unconsolidated properties.

17

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages

	March 31, 2020 and February 29, 2020 where applicable																						March 31, 2019
											Actual Occupancy						Leased Occupancy																Actual Occupancy
	% Rolling 12 Mo. NOI			Average Comp Sales(1)		Average Gross Rent(2)(3)		Occupancy Cost			Total			Non- Anchor			Total			Non- Anchor			% Rolling 12 Mo. NOI			Average Comp Sales		Average Gross Rent(2)(3)		Occupancy Cost			Total			Non- Anchor
Malls		89.3	%	$	542	$	59.21		12.3	%		92.9	%		90.3	%		94.0	%		92.0	%		87.0	%	$	517	$	60.24		12.7	%		94.7	%		91.5	%
Non-Core Malls		3.1	%	$	349		44.49		12.7	%		60.1	%		68.8	%		60.1	%		68.8	%		7.8	%	348		44.08			12.7	%		76.2	%		77.4	%
Malls Total		92.4	%	$	529	$	58.36		12.3	%		90.0	%		88.8	%		90.9	%		90.4	%		94.8	%	$	504	$	59.16		12.7	%		92.9	%		90.4	%
Other Retail Properties		5.8	%	n/a			25.40	n/a				89.9	%		89.0	%		93.1	%		92.6	%		5.1	%	n/a		25.15		n/a				92.7	%		92.1	%
Total Retail Properties		98.2	%	$	529	$	49.65		12.3	%		90.0	%		88.8	%		91.2	%		90.7	%		100.0	%	n/a		$	50.23	n/a				92.9	%		90.7	%
Sold Properties		1.3	%	n/a		n/a		n/a			n/a			n/a			n/a			n/a				-	%	377		49.15		n/a				65.6	%		87.2	%
Other Properties (4)		0.5	%	n/a		n/a		n/a			n/a			n/a			n/a			n/a				-	%	n/a		n/a		n/a			n/a			n/a
Total Portfolio		100.0	%	$	529	$	49.65		12.3	%		90.0	%		88.8	%		91.2	%		90.7	%		100.0	%	$	499	$	49.23					91.5	%		90.7	%

⁽¹⁾ Average comp sales for 2020 reflects the data for the trailing twelve months ended February 29,2020 due to the widespread COVID-19 related mall closures, which resulted in non comparable March 2020 sales amounts.

⁽²⁾ Average gross rent for malls includes all non-anchor space owned by the Company and leased to tenants that occupy individual spaces of less than 10,000 square feet. Average gross rent for other retail properties includes all non-anchor space owned by the Company regardless of size.

⁽³⁾ Average gross rent for mall tenants greater than 10,000 sf was $21.32 per square foot as of March 31, 2020 and $21.99 per square foot as of March 31, 2019.

⁽⁴⁾ Operating metrics for Fashion District Philadelphia as of March 31, 2020 and 2019, respectively, are excluded because the property was under redevelopment until September 2019 and has not yet stabilized.

18

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot

	March 31, 2020 and February 29, 2020 where applicable											March 31, 2019								Change
	% of Mall NOI			Avg Comp Sales (1)		Total Occupancy %			Non- Anchor Occupancy %			Avg Comp Sales (1)		Total Occupancy %			Non-Anchor Occupancy %			Avg Comp Sales (1)			Total Occupancy %			Non- Anchor Occupancy %
Top 6 Malls
Willow Grove Park		6.5	%	$	769		97.1	%		95.2	%	$	749		93.6	%		88.9	%		2.7	%		3.5	%		6.3	%
Cherry Hill Mall		13.4	%	733			94.2	%		93.0	%	690			94.7	%		93.6	%		6.2	%		(0.5	%)		(0.6	%)
Woodland Mall		6.0	%	642			95.9	%		95.1	%	579			98.4	%		98.4	%		10.9	%		(2.5	%)		(3.3	%)
Lehigh Valley Mall		6.0	%	589			89.9	%		83.3	%	568			91.4	%		86.0	%		3.7	%		(1.5	%)		(2.7	%)
Mall at Prince Georges		7.5	%	573			98.3	%		96.4	%	558			98.4	%		96.6	%		2.2	%		(0.1	%)		(0.2	%)
Springfield Town Center		11.0	%	570			92.0	%		89.3	%	552			93.4	%		91.1	%		3.8	%		(1.4	%)		(1.8	%)
		50.4	%	$	651		94.3	%		91.5	%	$	621		94.7	%		92.2	%		4.8	%		(0.4	%)		(0.7	%)
Malls 7-12
Dartmouth Mall		4.0	%		548		99.1	%		98.7	%	522			98.3	%		97.1	%		5.0	%		0.8	%		1.6	%
Jacksonville Mall		4.1	%		517		96.1	%		92.4	%	501			99.9	%		99.8	%		3.2	%		(3.8	%)		(7.4	%)
Magnolia Mall		3.4	%		463		97.3	%		95.4	%	464			98.6	%		97.7	%		(0.2	%)		(1.3	%)		(2.3	%)
Capital City Mall		5.2	%		455		98.9	%		98.4	%	434			98.5	%		97.8	%		4.8	%		0.4	%		0.6	%
Patrick Henry Mall		4.7	%		455		93.8	%		90.9	%	417			94.8	%		92.4	%		9.1	%		(1.0	%)		(1.5	%)
Viewmont Mall		4.2	%		441		97.1	%		94.0	%	429			97.8	%		95.5	%		2.8	%		(0.7	%)		(1.5	%)
		25.6	%	$	473		97.1	%		92.5	%	$	453		98.1	%		96.7	%		4.4	%		(1.0	%)		(4.2	%)
Malls 13-18
Valley Mall		5.0	%		424		98.8	%		97.5	%	410			96.4	%		92.8	%		3.4	%		2.4	%		4.7	%
Moorestown Mall		3.1	%		416		79.9	%		83.5	%	410			92.3	%		82.1	%		1.5	%		(12.4	%)		1.4	%
Springfield Mall		1.6	%		398		93.7	%		93.7	%	404			96.8	%		96.8	%		(1.5	%)		(3.1	%)		(3.1	%)
Cumberland Mall		3.0	%		388		87.5	%		79.6	%	387			86.5	%		77.9	%		0.3	%		1.0	%		1.7	%
Francis Scott Key Mall		3.9	%		376		93.9	%		90.4	%	373			91.8	%		87.2	%		0.8	%		2.1	%		3.2	%
Plymouth Meeting Mall		4.1	%		358		83.2	%		75.0	%	326			91.7	%		87.3	%		9.8	%		(8.5	%)		(12.3	%)
		20.7	%	$	395		88.4	%		85.0	%	$	385		92.2	%		86.5	%		2.6	%		(3.8	%)		(1.5	%)
All Core Malls		96.7	%	$	542		92.9	%		90.3	%	$	517		94.7	%		91.5	%		4.8	%		(1.8	%)		(1.2	%)
Non-Core Malls
Wyoming Valley Mall		-	%	$	0		-	%		-	%	$	377		65.6	%		87.2	%
Valley View Mall		1.8	%	382			66.1	%		82.0	%	355			71.4	%		92.3	%		7.6	%		(5.3	%)		(10.3	%)
Exton Square Mall		1.5	%	313			57.1	%		61.3	%	342			78.4	%		70.0	%		(8.5	%)		(21.3	%)		(8.7	%)
All Non-Core Malls		3.3	%	$	349		60.1	%		68.8	%	$	359		72.0	%		80.2	%		(2.8	%)		(11.9	%)		(11.4	%)
All Malls		100.0	%	$	529		90.0	%		88.8	%	$	499		91.5	%		90.7	%		6.0	%		(1.5	%)		(1.9	%)

⁽¹⁾ Based on reported sales by all comparable non-anchor tenants that lease individual spaces of less than 10,000 square feet and have occupied the space for at least 24 months. Due to widespread COVID-19 related mall closures, the 2020 average comp sales are based on the trailing twelve months ended February 29, 2020 data for comparability purposes.

19

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants

March 31, 2020

Tenant	Brands	Locations at Consolidated Properties		Locations at Unconsolidated Properties		Total Number of Locations (1)		Percentage of Annualized Gross Rent (2)
Foot Locker, Inc.	Champs, Foot Locker, Footaction, House of Hoops by Foot Locker, Kids Foot Locker, Lady Foot Locker, Nike Yardline, Footaction Flight 23	42		8		50			4.5	%
L Brands, Inc.	Bath & Body Works, Pink, Victoria's Secret	36		6		42			4.0	%
Signet Jewelers Limited	Kay Jewelers, Piercing Pagoda, Totally Pagoda, Zales Jewelers, Silver & Gold Connection	54		9		63			3.1	%
Dick's Sporting Goods, Inc.	Dick's Sporting Goods	11		1		12			2.6	%
American Eagle Outfitters, Inc.	Aerie, American Eagle Outfitters	16		4		20			2.5	%
Express, Inc	Express, Express Factory Outlet, Express Men	13		3		16			1.9	%
Gap, Inc.	Banana Republic, Gap/Gap Kids/Gap Outlet, Old Navy	12		9		21			1.8	%
J.C. Penney Company, Inc.	JC Penney, Penneys Firestone	13		1		14			1.7	%
Macy's	Bloomingdale's, Macy's	12		2		14			1.6	%
Home Depot	Home Depot	1		2		3			1.5	%
Cineworld Group	Regal Cinemas	4			-	4			1.5	%
Genesco Inc.	Johnston & Murphy, Journeys, Journeys Kidz, Underground by Journeys	25		4		29			1.5	%
Dave & Buster's, Inc.	Dave & Buster's	3			-	3			1.4	%
Ascena Retail Group, Inc.	Ann Taylor, Dress Barn, Justice, Lane Bryant, Loft, Loft Outlet	21		5		26			1.3	%
Luxottica Group S.p.A.	Lenscrafters, Pearle Vision, Sunglass Hut, Sunglass Hut Outlet	23		6		29			1.3	%
H&M Hennes & Mauritz L.P.	H&M	12			-	12			1.3	%
Darden Concepts, Inc.	Bahama Breeze, Capital Grille, Olive Garden, Seasons 52, Yard House	9			-	9			1.2	%
Shoe Show, Inc.	Shoe Department, Shoe Dept. Encore, Shoe Show	20		2		22			1.1	%
The Children's Place, Inc.	The Children's Place	14		3		17			1.0	%
The TJX Companies, Inc.	HomeGoods, HomeSense, Marshalls, Sierra Trading Post, TJ Maxx	7		1			8		0.9	%
Total Top 20 Tenants		348		66		414			37.7	%
Total Leases			1,450	312			1,762		100.0	%

⁽¹⁾ Excludes tenants from Fashion District Philadelphia.

⁽²⁾ Includes our share of tenant gross rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments as of March 31, 2020.

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Pennsylvania Real Estate Investment Trust

Lease Expirations as of March 31, 2020

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

Non-Anchors (1)
			Gross Leasable Area ("GLA")					Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA (2)		Percent of Total			Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year (3)		Percent of PREIT’s Total			Average Expiring Gross Rent psf
2020 and Prior		264		889,994		11.0	%		37,531		33,400		11.1	%		42.17
2021		268		1,083,990		13.4	%		41,562		35,302		11.7	%		38.34
2022		221		686,560		8.5	%		33,666		29,292		9.7	%		49.04
2023		182		1,128,482		13.8	%		40,871		36,187		12.0	%		36.22
2024		166		708,036		8.7	%		37,097		33,722		11.2	%		52.39
2025		160		743,519		9.2	%		38,813		31,830		10.6	%		52.20
2026		116		580,749		7.2	%		31,333		24,542		8.1	%		53.95
2027		92		644,209		7.9	%		25,058		23,406		7.8	%		38.90
2028		74		612,485		7.6	%		22,355		21,047		7.0	%		36.50
2029		57		467,071		5.8	%		17,133		16,301		5.4	%		36.68
Thereafter		48		563,346		6.9	%		17,125		16,374		5.4	%		30.40
Total/Average		1,648		8,108,441		100.0	%	$	342,544	$	301,403		100.0	%	$	42.25

Anchors(1)
			Gross Leasable Area ("GLA")					Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA (2)		Percent of Total			Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year (3)		Percent of PREIT’s Total			Average Expiring Gross Rent psf
2020 and prior		1		85,212		1.7	%		689		689		2.1	%		8.08
2021		7		648,162		13.2	%		3,977		2,760		8.4	%		6.14
2022		7		1,001,974		20.3	%		3,790		3,435		10.5	%		3.78
2023		3		348,592		7.1	%		1,865		1,865		5.7	%		5.35
2024		5		702,674		14.3	%		6,988		6,988		21.4	%		9.94
2025		5		731,526		14.8	%		2,659		2,659		8.1	%		3.63
2026		1		58,371		1.2	%		861		861		2.6	%		14.75
2028		9		982,424		19.9	%		6,847		6,847		21.0	%		6.97
2029		1		65,155		1.3	%		2,210		2,210		6.8	%		33.92
Thereafter		5		302,268		6.2	%		4,367		4,367		13.4	%		14.45
Total/Average		44		4,926,358		100.0	%	$	34,253	$	32,681		100.0	%	$	28.91

⁽¹⁾ Only includes owned space. Excludes tenants from Fashion District Philadelphia.

⁽²⁾ Does not include tenants occupying space under license agreements with initial terms of less than one year. The aggregate GLA of these tenants is 465,952 square feet.

⁽³⁾ Includes our share of tenant rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments.

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Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2020

		Landlord Owned Anchors/ Large Format Non Anchor				Anchor Stores Not Owned			Non-anchor occupied GLA
Properties	Location	Tenant	Expiration Year	GLA		Tenant	GLA		Large Format		Small Shop		Vacant			Total GLA
Core Malls
Capital City Mall	Camp Hill, PA	JCPenney	2028		102,825	Macy's		120,000		104,806		171,835		5,305			616,750
		Dick's Sporting Goods	2028		61,677
		Sportsman's Warehouse	2031							50,302
Cherry Hill Mall	Cherry Hill, NJ	Nordstrom	2025		138,000	JCPenney		174,285		227,087		408,612		47,529			1,300,113
						Macy's		304,600
Cumberland Mall	Vineland, NJ	Burlington	2021		80,983	BJ's Wholesale Club		117,889		137,493		148,260		84,563			950,987
		The Home Depot	2024		132,013	Boscov's		155,341
		Dick's Sporting Goods	2028		50,000
		Regal Cinemas	2024							44,445
Dartmouth Mall	Dartmouth, MA	JCPenney	2024		100,020	Macy's		140,000		129,427		145,982		4,198			608,455
		Burlington	2030		43,840
		AMC Theaters	2026							44,988
Francis Scott Key Mall	Frederick, MD	JCPenney	2021		101,293	Macy's		139,333		139,863		165,110		37,635			754,267
		Sears	2023		120,883
		Dick's Sporting Goods	2025							50,150
Jacksonville Mall	Jacksonville, NC	Belk	2021		72,510					112,570		121,155		19,105			494,945
		JCPenney	2025		51,812
		Sears	2021		117,793
Lehigh Valley Mall	Allentown, PA	Boscov's	2022		164,694	JCPenney		207,292		141,510		338,082		96,191			1,159,769
		Macy's	2022		212,000
Magnolia Mall	Florence, SC	Belk	2028		115,793					96,175		140,229		15,813			594,860
		Best Buy	2023		32,054										��
		JCPenney	2022		104,107
		Dick's Sporting Goods	2023							45,000
		Burlington	2028							45,689
Moorestown Mall (1)	Moorestown, NJ	Boscov's	2028		202,765					88,046		182,350		191,897			956,978
		Sears	2022		205,591
		Regal Cinemas	2028							57,843
		HomeSense	2028		28,486
Patrick Henry Mall	Newport News, VA	Dick's Sporting Goods	2022		50,250	Dillard's		144,157		60,095		210,859		27,091			717,664
		JCPenney	2020		85,212	Macy's		140,000
Plymouth Meeting Mall	Plymouth Meeting, PA	Boscov's	2028		188,429					136,418		180,988		152,015			903,697
		Whole Foods	2029		65,155
		Burlington	2030		41,883
		AMC Theaters	2027							48,000
		Dick's Sporting Goods	2031							57,588
		LEGOLAND Discovery Center	2032							33,221
Springfield Mall	Springfield, PA					Macy's		192,000		20,577		188,175		14,068			610,719
						Target		195,899
Springfield Town Center	Springfield, VA	Macy's	2025		252,245	JCPenney		209,144		178,772		308,155		78,496			1,373,877
						Target		180,841
		Dick's Sporting Goods	2025							53,891
		Nordstrom Rack	2025							33,107
		Regal Cinemas	2029							49,788
		Saks OFF 5th	2026							29,438
The Mall at Prince Georges	Hyattsville, MD	JCPenney	2021		148,778					177,988		250,538		15,784			923,929
		Macy's	2023		195,655
		Target	2024		135,186

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Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2020

		Landlord Owned Anchors/ Large Format Non Anchor				Anchor Stores Not Owned			Non-anchor occupied GLA
Properties	Location	Tenant	Expiration Year	GLA		Tenant	GLA		Large Format		Small Shop		Vacant		Total GLA
Valley Mall	Hagerstown, MD	JCPenney	2024		157,455					95,023		238,219		10,102		855,173
		Belk	2028		123,094
		Regal Cinemas	2029							53,059
		Dick's Sporting Goods	2031		60,380
		Onelife Fitness	2033		70,000
		Tilt Studio	2028		47,841
Viewmont Mall	Scranton, PA	JCPenney	2025		193,112	Macy's		139,801		65,843		161,795		16,098		689,226
		Dick's Sporting Goods/Field & Stream	2028		90,000
		HomeGoods	2027							22,577
Willow Grove Park	Willow Grove, PA	Macy's	2022		225,000	Bloomingdale's		237,537		129,219		258,801		19,727		1,086,200
		Nordstrom Rack	2022		40,332	Sears(2)		175,584
Woodland Mall	Grand Rapids, MI	Von Maur	2119		86,165	JCPenney		254,905		162,636		271,876		22,194		955,092
						Macy's		157,316
Total Core Malls					4,495,311			3,385,924		2,922,634		3,891,021		857,811		15,552,701
Other Malls and Retail Properties
Exton Square Mall	Exton, PA	Boscov's	2024		178,000	Macy's		181,200		41,884		184,643		347,094		991,192
		Round 1	2026		58,371
Fashion District Philadelphia	Philadelphia, PA	Burlington	2032		85,162					104,548		141,696		234,014		823,648
		Century 21	2026		95,157
		AMC	2034							36,535
		Round 1	2029							58,080
		City Winery	2037							29,762
		H&M	2030							38,694
Gloucester Premium Outlets	Blackwood, NJ									37,303		264,488		66,358		368,149
Metroplex Shopping Center	Plymouth Meeting, PA	Giant Food Store	2021		67,185	Lowe's		163,215		287,753		43,387		54,498		778,232
						Target		137,514
		Saks OFF 5th	2026							24,680
The Court at Oxford Valley	Fairless Hills, PA	Best Buy	2021		59,620	BJ's Wholesale Club		116,872		249,597		54,141		44,164		704,526
						The Home Depot		130,751
		Dick's Sporting Goods	2021							49,381
Valley View Mall (3)	La Crosse, WI	JCPenney	2025		96,357					41,667		129,764		250,785		518,573
Valley View Center	La Crosse, WI											15,272				60,272
		Dick's Sporting Goods	2025							45,000
Red Rose Commons	Lancaster, PA					The Home Depot		134,558		248,086		15,207		-		462,883
						Weis Market		65,032
Total Other Malls and Retail Properties					639,852			929,142		1,292,970		848,598		996,913		4,707,475
Total Portfolio					5,135,163			4,315,066		4,215,604		4,739,619		1,854,724		20,260,176

⁽¹⁾ Vacant GLA includes 121,200 square feet from former Lord & Taylor store which closed in the first quarter of 2020.

⁽²⁾ Approximately 69,000 square feet of this space has been subleased to Primark.

⁽³⁾ Vacant GLA includes 100,000 square feet from former Herberger's store which closed in the third quarter of 2018.

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Pennsylvania Real Estate Investment Trust

Investment in Real Estate - Consolidated Properties

(in thousands)

	March 31, 2020
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Debt(1)
Core Malls
Capital City Mall	$	134,937	$	1,897	$	52,636	$	84,198	$	-
Cherry Hill Mall		479,715		3,683		265,110		218,288		268,753
Cumberland Mall		84,014		-		31,990		52,024		42,247
Dartmouth Mall		87,211		3,339		45,180		45,370		58,288
Francis Scott Key Mall		98,078		-		43,926		54,152		68,469
Jacksonville Mall		93,566		-		40,918		52,648		-
Magnolia Mall		107,165		2		50,282		56,885		-
Moorestown Mall		184,680		3,243		74,752		113,171		-
Patrick Henry Mall		156,553		-		74,259		82,294		88,910
Plymouth Meeting Mall		229,106		9,626		101,844		136,888		-
The Mall at Prince Georges		143,485		1,872		65,467		79,890		-
Springfield Town Center		496,292		-		71,011		425,281		-
Valley Mall		145,547		2,290		49,424		98,413		-
Viewmont Mall		121,750		-		50,785		70,965		67,185
Willow Grove Park		232,911		32,650		107,306		158,255		156,444
Woodland Mall		260,118		22,883		80,814		202,187		123,840
Total Core Malls		3,055,128		81,485		1,205,704		1,930,909		874,136
Non-Core Malls
Exton Square Mall		48,974		-		11,868		37,106		-
Valley View Mall		36,191		-		13,085		23,106		27,429
Total Non-Core Malls		85,165		-		24,953		60,212		27,429
Total Malls	$	3,140,293	$	81,485	$	1,230,657	$	1,991,121	$	901,565
Other Properties
Land held for development		5,881		-		-		5,881		-
Total Other Properties	$	5,881	$	-	$	-	$	5,881	$	-
Total Investment in Real Estate	$	3,146,174	$	81,485	$	1,230,657	$	1,997,002	$	901,565
Outparcels/land parcels held for sale
Jacksonville Mall		725		-		446		279		-
Magnolia Mall		1,409		-		653		756		-
Moorestown Mall		434		-		-		434		-
Valley Mall		3,959		-		1,366		2,593		-
Woodland Mall		1,116		-		-		1,116		-
Total held for sale	$	7,643	$	-	$	2,465	$	5,178	$	-

⁽¹⁾ Refer to page 31 for further debt information.

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Pennsylvania Real Estate Investment Trust

Investment in Real Estate – Equity Method Investments at Ownership Share

(in thousands)

	March 31, 2020
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation			Net Real Estate		Debt(2)
Unconsolidated Malls
Fashion District Philadelphia(1)	$	223,544	$	109,982	$	(12,278	)	$	321,248	$	150,500
Lehigh Valley Mall		49,513		5,836		(28,833	)		26,516		96,400
Springfield Mall		58,727		60		(24,383	)		34,404		30,226
Total Unconsolidated Malls	$	331,784	$	115,878	$	(65,494	)	$	382,168	$	277,126
Unconsolidated Other Retail Properties
Gloucester Premium Outlets		27,497		585		(4,946	)		23,136		21,500
Metroplex Shopping Center		43,031		282		(26,168	)		17,145		37,404
The Court at Oxford Valley		29,138		5		(13,527	)		15,616		26,647
Red Rose Commons		14,216		8		(4,394	)		9,830		12,858
Total Unconsolidated Other Retail Properties	$	113,882	$	880	$	(49,035	)	$	65,727	$	98,409
Unconsolidated Property Under Development
Pavilion at Market East		6,346		793		(2,394	)		4,745		3,109
Total Investment in Real Estate	$	452,012	$	117,551	$	(116,923	)	$	452,640	$	378,644

⁽¹⁾ CIP includes $34.7 million of existing building shell that was reclassified from operating properties.

⁽²⁾ Refer to page 31 for further debt information.

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Pennsylvania Real Estate Investment Trust

Anchor Replacement Summary

March 31, 2020

Property	Former Anchors	GLA (in '000's)	Date Closed	Decommission Date	Replacement Tenant(s)	GLA (in '000's)	Actual/Targeted Occupancy Date
Completed:
Dartmouth Mall	Sears	108	Q3 19	Q3 19	Burlington	44	Q1 20
Moorestown Mall	Macy's	200	Q1 17	Q2 17	HomeSense	28	Q3 18
					Five Below	9	Q4 18
					Sierra Trading Post	19	Q1 19
					Michael's	25	Q1 20
Valley Mall	Macy's	120	Q1 16	Q4 17	Tilt Studio	48	Q3 18
					One Life Fitness	70	Q3 18
	Bon-Ton	123	Q1 18	Q1 18	Belk	123	Q4 18
	Sears	72	Q3 17	Q2 18	Dick's Sporting Goods	57	Q1 20
Plymouth Meeting Mall	Macy's(1)	215	Q1 17	Q2 17	Burlington	42	Q3 19
					Dick's Sporting Goods	58	Q3 19
					Miller's Ale House	8	Q3 19
					Edge Fitness	38	Q4 19
					Michael's	26	Q1 20
Willow Grove Park	JC Penney	125	Q3 17	Q1 18	Yard House	8	Q4 19
In Progress:
Willow Grove Park	JC Penney	See above			Studio Movie Grill	49	(2)

⁽¹⁾ Property is subject to a ground lease.

⁽²⁾ Timing of occupancy has not yet been determined due to uncertainty around duration of buildout due to COVID-19 restrictions on construction.

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Pennsylvania Real Estate Investment Trust

Property Redevelopment Table as of March 31, 2020

Name Of Project and Location	Total Project Cost	PREIT's Investment To Date	Targeted Return On Incremental Investment	Construction Start Date	Expected Construction Completion	Expected Stabilization Year	Percentage Leased Or Negotiating
Anchor replacements:
Dartmouth Mall
Dartmouth, MA	$12-13	$12.2	4.0-8.0% (1)	2019	2020	2022	49%
Includes Burlington as lead replacement for Sears as well as several outparcel opportunities.
Valley Mall
Hagerstown, MD	$23-24	$19.1	6.5-7.0%	2019	2020	2021	68%
Include Dick's Sporting Goods as replacement for Sears as well as other tenant opportunities.
Willow Grove Park Mall
Willow Grove, PA	$27-28	$36.3 (2)	7.5-8.0%	2018	2020	2022	52%
Addition of Studio Movie Grill, offering movies and in-theater dining, with other dining and entertainment tenants planned in former JC Penney box.

⁽¹⁾ High end of targeted return on incremental investment includes revenues from additional inline stores and outparcel opportunities.  Additional capital expenditures will be required to achieve these returns.

⁽²⁾ Includes $13.7 million of investments in real estate from the former JC Penney box.

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Pennsylvania Real Estate Investment Trust

Capital Expenditures

Three Months Ended March 31, 2020

(in thousands)

	Three Months Ended March 31, 2020
	Consolidated		PREIT's Share of Equity Method Investments		Total
Redevelopment projects with incremental GLA and/or anchor replacement (1)	$	14,924	$	10,766	$	25,690
Tenant allowances		1,017		-		1,017
Recurring capital expenditures:
CAM expenditures		947		9		956
Non-CAM expenditures		61		17		78
Total recurring capital expenditures		1,008		26		1,034
Total	$	16,949	$	10,792	$	27,741

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

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Pennsylvania Real Estate Investment Trust

Debt Analysis as of March 31, 2020

(in thousands)

	Outstanding Debt
	Fixed Rate (1)			% of Total Indebtedness			Variable Rate			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable (2)	$	884,236			41.8	%	$	13,854			0.7	%	$	898,090			42.5	%
Unconsolidated mortgage loans payable (3)	$	202,471			9.6	%	$	24,584			1.1	%		227,055			10.7	%
Consolidated Term Loans (4)		550,000			26.0	%		-			0.0	%		550,000			26.0	%
Unconsolidated Term Loan (5)		-			0.0	%		150,500			7.1	%		150,500			7.1	%
2018 Revolving Facility		-			0.0	%		289,000			13.7	%		289,000			13.7	%
Total Outstanding Debt	$	1,636,707			77.4	%	$	477,938			22.6	%	$	2,114,645			100.0	%
Average Stated Interest Rate		4.15	%					3.23	%					3.90	%

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

⁽²⁾ Excludes deferred financing costs of $1,595.

⁽³⁾ Reflects our share of mortgage debt of equity method investees. Excludes our share of deferred financing costs of $695.

⁽⁴⁾ Excludes deferred financing costs of $1,784.

⁽⁵⁾ Reflects our share of Term Loan debt of equity method investee. Excludes our share of deferred financing costs of $1,560.

		Average Debt Balance
		Mortgage Debt			Revolving Facility		Term Loans		Total
Beginning Balance	12/31/2019	$	1,129,708		$	255,000	$	700,500	$	2,085,208
2018 Revolving Facility Borrowing	1/31/2020		-			5,000		-		5,000
2018 Revolving Facility Borrowing	2/26/2020		-			7,000		-		7,000
2018 Revolving Facility Borrowing	3/13/2020		-			22,000		-		22,000
Mortgage loan amortization, including our share of debt of equity method investees	3/31/2020		(4,563	)		-		-		(4,563	)
Ending Balance	3/31/2020	$	1,125,145		$	289,000	$	700,500	$	2,114,645
Weighted Average Balance		$	1,128,455		$	265,264	$	700,500	$	2,094,219

(continued on next page)

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Pennsylvania Real Estate Investment Trust

Debt Analysis as of March 31, 2020

(in thousands)

Debt Maturities(1)
Year	Scheduled Amortization		Deferred Financing Cost Amortization - Mortgages			Mortgage Balance at Initial Maturity Date		2018 Revolving Facility		Term Loans		Deferred Financing Cost Amortization - Term Loans			Total Debt
2020	$	16,080	$	(764	)	$	27,161	$	-	$	-	$	(870	)	$	41,607
2021		21,910		(625	)		229,955		-		250,000		(1,137	)		500,103
2022		17,201		(301	)		377,489		289,000		-		(726	)		682,663
2023		10,204		(195	)		86,801		-		450,500		(209	)		547,101
2024		9,291		(185	)		-		-		-		(75	)		9,031
Thereafter		11,619		(220	)		317,434		-		-		(325	)		328,508
	$	86,305	$	(2,290	)	$	1,038,840	$	289,000	$	700,500	$	(3,344	)	$	2,109,011

⁽¹⁾ The weighted average period to total debt maturity is 2.85 years, excluding extension options. Includes 100% of revolver, term loan and mortgage loan debt from consolidated properties and our share of term loan and mortgage loan debt of equity method investees.

Weighted Average Mortgage Interest Rates
Year	Balance (1)		Interest Rate
2020	$	27,319		5.95	%
2021		232,976		3.64	%
2022		399,621		4.10	%
2023		95,202		4.37	%
2024		-	-
Thereafter		370,028		4.08	%
Total	$	1,125,145		4.07	%

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

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Pennsylvania Real Estate Investment Trust

Debt Schedule as of March 31, 2020

(in thousands)

	Debt			Interest Rate			Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Fixed Rate Mortgage Loans
Valley View Mall	$	27,319			5.95	%	$	2,290	$	27,161	July 2020	July 2020
Viewmont Mall (1)		57,000			3.73	%		2,126		-	March 2021	March 2021
Woodland Mall (1)		123,420			3.02	%		5,401		121,600	April 2021	April 2021
Red Rose Commons (2)		12,780			5.14	%		978		12,379	July 2021	July 2021
The Court at Oxford Valley (2)		26,506			5.56	%		2,058		25,782	July 2021	July 2021
Cumberland Mall		41,984			4.40	%		3,433		38,157	August 2022	August 2022
Cherry Hill Mall		267,668			3.90	%		16,980		251,120	September 2022	September 2022
Francis Scott Key Mall (1)		64,800			5.01	%		3,244		-	January 2022	January 2023
Dartmouth Mall		58,036			3.97	%		3,825		53,299	April 2023	April 2023
Metroplex Shopping Center (2)		37,166			5.00	%		2,818		33,502	October 2023	October 2023
Patrick Henry Mall		88,449			4.35	%		5,748		77,591	July 2025	July 2025
Springfield Mall (2)		30,074			4.45	%		1,964		26,299	October 2025	October 2025
Willow Grove Park		155,560			3.88	%		9,599		133,754	October 2025	October 2025
Lehigh Valley Mall (2)		95,945			4.06	%		5,768		79,789	November 2027	November 2027
Total Fixed Rate Mortgage Loans	$	1,086,707			4.09	%	$	66,245	$	880,433
Variable Rate Mortgage Loans
Pavilion East Associates (2)	$	3,084			3.73	%	$	215	$	3,009	February 2021	February 2021
Viewmont Mall		10,185			3.93	%		398		67,185	March 2021	March 2021
Gloucester Premium Outlets (2)		21,500			3.08	%		663		21,500	March 2022	March 2023
Francis Scott Key Mall		3,669			4.18	%		153		66,712	January 2022	January 2023
Total Variable Rate Mortgage Loans	$	38,438			3.46	%	$	1,429	$	158,406
Total Mortgage Loans	$	1,125,145			4.07	%	$	67,674	$	1,038,839
Consolidated Mortgage Loans	$	898,090			3.98	%	$	53,197	$	836,579
Consolidated Deferred Financing Fees		(1,595	)	n/a			n/a		n/a
Unconsolidated Mortgage Loans		227,055			4.40	%		14,464		202,260
Unconsolidated Deferred Financing Fees (2)		(695	)	n/a			n/a		n/a
2014 7 Year Term Loan (1)		250,000			4.07	%		10,008		250,000	December 2021	December 2021
2018 5 Year Term Loan (1)		300,000			4.44	%		13,327		300,000	May 2023	May 2023
Unconsolidated Term Loan		150,500			3.58	%		5,390		150,500	January 2023	January 2023
Term Loan Deferred Financing Fees		(3,344	)	n/a			n/a		n/a
2018 Revolving Facility		289,000			2.81	%		8,126		289,000	May 2022	May 2023
Total	$	2,109,011			3.90	%	$	104,512	$	2,028,339
Amortization of Deferred Financing Fees	—				0.00	%	—		—
Effective Interest Rate	$	2,109,011			3.90	%	$	104,512	$	2,028,339

⁽¹⁾ All or a portion of the loan has been effectively swapped to the fixed interest rate presented.

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

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Pennsylvania Real Estate Investment Trust

Selected Debt Ratios ⁽¹⁾

	March 31, 2020
Consolidated Liabilities to Gross Asset Value		63.35	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 65%
Secured Indebtedness to Gross Asset Value		36.26	%
Secured Indebtedness to Gross Asset Value may not exceed 60%
Adjusted EBITDA to Fixed Charges		1.49
Adjusted EBITDA may not be less than 1.40 to 1.00
Unencumbered Adjusted NOI to Unsecured Interest Expense	3.03
Unencumbered Adjusted NOI to Unsecured Interest Expense may not be less than 1.75 to 1.00
Unencumbered Debt Yield		10.78	%
Ratio of Unencumbered Adjusted NOI to Unsecured Debt may not be less than 10%

⁽¹⁾ The 2018 Revolving Facility Agreement, as amended, and 2018 Term Loan Agreement, as amended, each dated May 24, 2018, and the 7-Year 2014 Term Loan Agreement, as amended, dated June 5, 2018 (collectively, the "Credit Facility Agreements"), contain identical affirmative and negative covenants customarily found in such agreements, including requirements that the Company, on a consolidated basis, maintain certain financial ratios.  All capitalized terms used on this page have the meanings ascribed to such terms in the Credit Facility Agreements.  In addition to the ratios set forth herein, there are several other ratios set forth in the covenants under the Credit Facility Agreements with which the Company must comply, which are described in the Company’s quarterly report on Form 10-Q for the quarterly period ended June 30, 2018. The Credit Facility Agreements were amended on March 30, 2020, and the covenants and ratios, as amended, are described in the Company’s current report on Form 8-K filed March 31, 2020.

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Pennsylvania Real Estate Investment Trust

Forward Looking Statements

FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, together with other statements and information publicly disseminated by us, contain certain forward-looking statements that can be identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “project,” “intend,” “may” or similar expressions. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters, including our expectations regarding the impact of COVID-19 on our business, that are not historical facts. These forward-looking statements reflect our current views about future events, achievements, results, cost reductions, dividend payments and the impact of COVID-19 and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, our business might be materially and adversely affected by the following:

• the COVID-19 global pandemic and the public health and governmental actions in response, which have and may continue to exacerbate many of the risks listed below;

• our ability to implement plans and initiatives to adequately address the “going concern” considerations described in Note 1 to our unaudited consolidated financial statements;

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

• current economic conditions and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions;

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

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

• increases in operating costs that cannot be passed on to tenants;

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

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

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

• our ability to sell properties that we seek to dispose of or our ability to obtain prices we seek;

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

• our substantial debt and the liquidation preference of our preferred shares and our high leverage ratio and our ability to remain in compliance with our financial covenants under our debt facilities;

• our ability to refinance our existing indebtedness when it matures, on favorable terms or at all;

• our ability to satisfy our indebtedness if such indebtedness were to be accelerated due to breach of covenants or payment default, as well as our ability to satisfy any other debt that was accelerated as a consequence;

• our ability to raise capital, including through sales of properties or interests in properties and through the issuance of equity or equity-related securities if market conditions are favorable;

• our ability to continue to pay dividends at current levels or at all; and

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

Additional factors that might cause future events, achievements or results to differ materially from those expressed or implied by our forward-looking statements include those discussed herein and in our Annual Report on Form 10-K for the year ended December 31, 2019 in the section entitled “Item 1A. Risk Factors,” in our Current Report on Form 8-K filed on May 11, 2020 and in any subsequent reports we file with the SEC. We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

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Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

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

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

FFO does not include gains and losses on sales of operating real estate assets or impairment write downs of depreciable real estate, 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 NOI. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that net income is the most directly comparable GAAP measurement to FFO.

When applicable, we also present Funds From Operations, as adjusted, and Funds From Operations per diluted share and OP Unit, as adjusted, which are non-GAAP measures, to show the effect of such items as gain or loss on debt extinguishment (including accelerated amortization of financing costs), impairment of assets, provision for employee separation expense and insurance recoveries or losses, net, which can have a significant effect on our results of operations, but are not, in our opinion, indicative of our operating performance.  We also present FFO on a further adjusted basis to isolate the impact on FFO caused by property dispositions.

We believe 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 gains on sales of operating real estate and depreciation and amortization of real estate, among others. We believe that Funds From Operations, as adjusted, is helpful to management and investors as a measure of operating performance because it adjusts FFO to exclude items that management does not believe are indicative of our operating performance, such as provision for employee separation expense and accelerated amortization of financing costs.

Net Operating Income (NOI)

NOI (a non-GAAP measure) is derived from real estate revenue (determined in accordance with GAAP, including lease termination revenue), minus property operating expenses (determined in accordance with GAAP), plus our pro rata share of revenue and property operating expenses of our unconsolidated partnership investments. NOI excludes other income, general and administrative expenses, insurance recoveries, employee separation expenses, interest expense, depreciation and amortization, impairment of assets, gains/ adjustment to gains on sale of interest in non operating real estate, gain on sales of interest in real estate by equity method investee, gains/ losses on sales of interests in real estate, net, gain or loss on debt extinguishment, and project costs and other expenses. We believe that net income is the most directly comparable GAAP measure to NOI.

We believe that NOI is helpful to management and investors as a measure of operating performance because it is an indicator of the return on property investment and provides a method of comparing property performance over time.   We use NOI and related terms, like Same Store NOI, as performance measures for determining incentive compensation amounts under certain of our performance-based incentive compensation programs.

Same Store NOI

Same Store NOI is calculated using retail properties owned for the full periods presented and excludes properties acquired, disposed, under redevelopment or designated as non-core during the periods presented. In 2018, Wyoming Valley Mall was designated as non-core and subsequently conveyed to the lender in September 2019.  In 2019, Exton Square and Valley View Malls, as well as power centers and Gloucester Premium Outlets, were designated as non-core and will be excluded from Same Store NOI.  Non Same Store NOI is calculated using the retail properties excluded from the calculation of Same Store NOI.

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Funds Available for Distribution (FAD)

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

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

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

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

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

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

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