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

Exhibit 99.1

Supplemental Financial and Operating Information

March 31, 2021

www.preit.com

NYSE: PEI

NYSE: PEIPRB, PEIPRC, PEIPRD

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

March 31, 2021

Table of Contents
Introduction
Company Information	1
Earnings Release	2
Changes in Funds from Operations for the Three Months Ended March 31, 2021	5
Market Capitalization and Capital Resources	6
Operating Results
Statements of Operations – Three Months Ended March 31, 2021 and 2020	7
Computation of Earnings Per Share	8
Reconciliation of Net Operating Income and EBITDAre (Non-GAAP Measures) – Three Months Ended March 31, 2021 and 2020	9
Reconciliation of Net Loss (GAAP Measure) to Net Operating Income from Consolidated Properties (Non-GAAP Measure) -  Three Months Ended March 31, 2021 and 2020	10
Reconciliation of Equity in (Loss) Income of Partnerships (GAAP Measure) to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Three Months Ended March 31, 2021 and 2020	11
Reconciliation of Net Loss (GAAP Measure) to Funds From Operations and Funds Available for Distribution (Non-GAAP Measures) – Three Months Ended March 31, 2021 and 2020	12
Condensed Consolidated Balance Sheets	13
Assets and Liabilities - Equity Method Investments, at Ownership Share (Non-GAAP Measure)	14
Operating Statistics
Leasing Activity Summary – Three Months Ended March 31, 2021	15
Summarized Sales and Rent Per Square Foot and Occupancy Percentages	16
Mall Occupancy Percentage and Sales Per Square Foot	17
Top Twenty Tenants	18
Lease Expirations	19
Property Information	20
Balance Sheet
Investment in Real Estate - Consolidated Properties	22
Investment in Real Estate - Equity Method Investments at Ownership Share	23
Capital Expenditures – Three Months Ended March 31, 2021	24
Debt Analysis	25
Debt Schedule	27
Selected Debt Ratios	28
Forward Looking Statements	29
Definitions	30

Pennsylvania Real Estate Investment Trust

Company Information

Background

PREIT (NYSE:PEI) is a publicly traded real estate investment trust (REIT) that owns and manages distinctive real estate in high barrier-to-entry markets at  the forefront of enabling communities through the built environment. PREIT’s robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in densely-populated, high barrier-to-entry markets with tremendous opportunity to create vibrant multi-use destinations. 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 19.8 million square feet and include 20 shopping malls and five 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

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

1

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 2021 Results

Year-to-Date Leasing Volume Over 500% Greater Than Full Year 2020 and 35% Ahead of Full Year 2019

Liquidity Profile Continues to Improve; Total Liquidity of $103.6 Million at End of First Quarter

Traffic approaching pre-COVID levels across portfolio at 86.4% of 2019 for Comparable Portfolio in April

Philadelphia, May 5, 2021 - PREIT (NYSE: PEI) today reported results for the three months ended March 31, 2021.  A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is provided in the tables accompanying this release.

	Three Months Ended March 31,
(per share amounts)	2021			2020
Net loss - basic and diluted	$	(0.64	)	$	(0.26	)
FFO	$	(0.14	)	$	0.14
FFO, as adjusted	$	(0.15	)	$	0.14

“The brick and mortar recovery is gaining momentum and we believe our portfolio is poised to capitalize on this momentum.  The foundation we have created with a portfolio of properties in high barrier-to-entry markets that accommodate a broad array of uses as well as properties that have won the in-market competitive battle for the consumer are seeing strong results as the rebound continues,” said Joseph F. Coradino, Chairman and CEO of PREIT. “Traffic is improving across the portfolio with retailers posting strong sales in March, which has led to improved collections, increased liquidity and vigorous tenant demand creating a robust pipeline of leasing activity.”

• Same Store NOI, excluding lease termination revenue, decreased 21.2% for the three months ended March 31, 2021 compared to the three months ended March 31, 2020.  

• The quarter was impacted by a decrease in real estate revenue of $8.7 million primarily resulting from prior year bankruptcies and related store closings, an increase in credit losses for challenged tenants and reduced expense recoveries resulting from temporary rent restructuring.

• Snow removal costs increased $1.2 million from the prior year quarter as a result of several snowstorms impacting the northeastern states.

• Cash collections continued to improve, increasing to 119% of billings for the first quarter of 2021 and exceeded 140% of monthly billings during April as collection of deferred rents continued to accelerate.

• As of March 31, 2021, we collected 81% of billed first quarter 2021 rents, an increase from receipts of 73% and 61% of billed rents as of the end of each of the fourth and third quarters of 2020, respectively.

2

• The Company’s accounts receivable balance decreased significantly in the first quarter of 2021, down to $40.4 million as of March 31, 2021 from $54.5 million as of December 31, 2020.

• As a result of strong collections, we had cash inflow from operating activities of $16.2 million for the three months ended March 31, 2021.    

• Core Mall total occupancy was 89.2%. Core Mall non-anchor occupancy was 87.0%.

• Core Mall non-anchor leased space, at 88.2%, exceeds occupied space by 120 basis points when factoring in executed new leases slated for future occupancy.

• Based on a comparable set of tenants who reported sales in March of 2019 and 2021, sales grew at 14 of the Company’s managed properties in March and more than half of the portfolio for the quarter.

• Average renewal spreads for the quarter ended March 31, 2021 were 2.2% in the wholly-owned portfolio for spaces less than 10,000 square feet.  

Leasing and Redevelopment

• 390,000 square feet of leases are signed for future openings, which is expected to contribute annual gross rent of $8.3 million.

• Leasing momentum continues to build with transactions executed for nearly 600,000 square feet of occupancy thus far this year.  

• Construction is underway for Aldi to open its first store in the portfolio at Dartmouth Mall in Dartmouth, MA in Q3 2021.

• A lease has been executed for a new self-storage facility in previously unused below grade space at Mall at Prince George’s in Hyattsville, MD with an anticipated opening in Q1 2022.

• Tilt Studios is under construction to replace JC Penney at Magnolia Mall in Florence, SC.  The family-focused destination is expected to open in Q3 2021.

• A transaction has been executed with Cooper Hospital for an outpatient location in the former Sears space at Moorestown Mall in Moorestown, NJ.

• The Company executed a rezoning agreement to allow for the addition of up to 1,065 multifamily units and a hotel at Moorestown Mall.

Primary Factors Affecting Financial Results for the Three Months Ended March 31, 2021 and 2020

• Net loss attributable to PREIT common shareholders was $49.6 million (which takes into consideration the accrual of preferred dividends that accumulated during the quarter but have not been paid), or $0.64 per basic and diluted share for the three months ended March 31, 2021, compared to net loss attributable to PREIT common shareholders of $19.9 million, or $0.26 per basic and diluted share for the three months ended March 31, 2020. 

• Same Store NOI, including lease terminations, decreased by $10.1 million, or 21.1%. The decrease is primarily due to reduced revenues from bankrupt tenants, an increase in credit losses and a reduction in expense recoveries resulting from temporary rent restructuring transactions, partially offset by new store openings, including contributions from replacement anchors.  

• Non-Same Store NOI decreased by $1.6 million, primarily due to lost revenues from bankrupt tenants, an increase in credit losses and increased operating expenses. Other decreases in NOI from Non-Same Store properties is due to the transfer of property at Valley View Mall during the third quarter of 2020.

• FFO for the three months ended March 31, 2021 was $(0.14) per diluted share and OP Unit compared to $0.14 per diluted share and OP Unit for the three months ended March 31, 2020.  Adjustments to FFO in the first quarter of 2021 were related to $(0.02) per share from gain on hedge ineffectiveness, offset by reorganization expenses and provision for employee separation expense.

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, 2021 and 2020 is included on page 15.

Liquidity and Financing Activities

As of March 31, 2021, the Company had $75.2 million available under its First Lien Revolving Credit Facility. The Company’s corporate cash balances, when combined with available credit, provides total liquidity of $103.6 million.

The Company refinanced the mortgage on Woodland Mall, extending the maturity to December 2021 with an option to extend for one year to December 2022.

Asset Dispositions

Multifamily Land Parcels: The Company has executed agreements of sale for land parcels for anticipated multifamily development in the amount of $87.2 million. The agreements are with multiple buyers across five properties for approximately 2,200 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.  

Hotel Parcels: The Company has an executed agreement of sale to convey a land parcel for anticipated hotel development in the amount of $2.5 million for approximately 125 rooms. Closing on the transaction is subject to customary due diligence provisions and securing entitlements.

3

2021 Outlook

The Company is not issuing detailed guidance at this time.

Conference Call Information

Management has scheduled a conference call for 11:00 a.m. Eastern Time on Thursday  
May 6, 2021, 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 9844099, at least fifteen minutes before the scheduled start time as callers may experience delays.  Investors can also access the call in a "listen only" mode via the internet at the Company’s website, preit.com.  Please allow extra time prior to the call to visit the site and download the necessary software to listen to the Internet broadcast.  Financial and statistical information expected to be discussed on the call will also be available on the Company’s website.

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

About PREIT

PREIT (NYSE:PEI) is a publicly traded real estate investment trust (REIT) that owns and manages distinctive real estate in high barrier-to-entry markets at  the forefront of enabling communities through the built environment. PREIT’s robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in densely-populated, high barrier-to-entry markets with tremendous opportunity to create vibrant multi-use destinations. Additional information is available at preit.com or on Twitter or LinkedIn.

Rounding

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

4

Pennsylvania Real Estate Investment Trust

Changes in Funds from Operations

For the Three Months Ended March 31, 2021 as compared to the Three Months Ended March 31, 2020

(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			Per Diluted Share and OP Unit
Funds from Operations, as adjusted March 31, 2020	$	11,272		$	0.14
Changes - Q1 2020 to Q1 2021
Contribution from anchor replacements and new box tenants		654			0.01
Impact from bankruptcies		(16	)		-
Other leasing activity, including base rent and net CAM and real estate tax recoveries		(8,448	)		(0.11	)
Lease termination revenue		27			-
Credit losses		694			0.01
Other		(634	)		(0.01	)
Same Store NOI from unconsolidated properties		(2,375	)		(0.03	)
Same Store NOI		(10,098	)		(0.13	)
Non Same Store NOI		(1,598	)		(0.02	)
Dilutive effect of asset sales		281			-
General and administrative expenses		(1,136	)		(0.02	)
Capitalization of leasing costs		(163	)		-
Other		5,276			0.07
Interest expense, net		(16,150	)		(0.21	)
Increase in weighted average shares		-			0.01
Funds from Operations, as adjusted March 31, 2021		(12,316	)		(0.15	)
Reorganization expenses		(197	)		-
Provision for employee separation expense		(92	)		-
Gain on hedge ineffectiveness		1,303			0.02
Funds from Operations March 31, 2021	$	(11,302	)	$	(0.14	)

5

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands)

	March 31, 2021			December 31, 2020
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding		79,260			79,537
OP Units Outstanding		1,976			1,976
Total Common Shares and OP Units Outstanding		81,236			81,513
Equity Market Capitalization—Common Shares and OP Units	$	155,973		$	81,513
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	$	539,723		$	465,266
DEBT CAPITALIZATION
Secured Debt Balance (1)	$	2,240,717		$	2,236,872
Debt Capitalization		2,240,717			2,236,872
TOTAL MARKET CAPITALIZATION	$	2,780,440		$	2,702,138
Equity Capitalization/Total Market Capitalization		19.4	%		17.2	%
Debt Capitalization/Total Market Capitalization		80.6	%		82.8	%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	59,163		$	55,086
Revolving Facility		130,000			130,000
Amount Outstanding		(54,830	)		(54,830	)
Available First Lien Revolving Facility (2)		75,170			75,170
Term Loans		1,087,167			1,072,620
Amount Borrowed		(1,087,167	)		(1,072,620	)
Available Term Loans		-			-
TOTAL	$	134,333		$	130,256
Shelf Registration	$	-		$	-

(1) Includes all consolidated mortgages, term loans, and revolving credit facility, as well as our share of mortgage debt from unconsolidated equity method investments, which includes $100.5 million of secured debt from our share of the FDP Term Loan as of March 31, 2021 and December 31, 2020 and $53.0 million and $50.0 million from our share of the FDP Partnership Loan as of March 31, 2021 and December 31, 2020, respectively. As of December 10, 2020, all debt is now secured.

(2) The available First Lien Revolving Facility borrowings are subject to covenants that may restrict amounts that can be borrowed. Some of these covenants do not come into effect until June 30, 2021.

6

Pennsylvania Real Estate Investment Trust

Statements of Operations – Three Months Ended March 31, 2021 and 2020

(unaudited)

	Three Months Ended March 31,
(in thousands of dollars)	2021			2020
REVENUE:
Real estate revenue:
Lease revenue	$	59,908		$	67,721
Expense reimbursements		3,899			4,305
Other real estate revenue		1,471			1,924
Total real estate revenue		65,278			73,950
Other income		125			293
Total revenue		65,403			74,243
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes		(27,831	)		(27,517	)
Utilities		(2,964	)		(2,922	)
Other property operating expenses		(2,364	)		(2,098	)
Total property operating expenses		(33,159	)		(32,537	)
Depreciation and amortization		(29,839	)		(30,269	)
General and administrative expenses		(11,831	)		(10,695	)
Provision for employee separation expenses		(92	)		(73	)
Project costs and other expenses		(101	)		(95	)
Total operating expenses		(75,022	)		(73,669	)
Interest expense, net (1)		(30,731	)		(16,858	)
Reorganization expenses		(197	)		-
Total expenses		(105,950	)		(90,527	)
Loss before equity in (loss) income of partnerships, gain on sales of real estate, net, and loss on sales of interests in non operating real estate		(40,547	)		(16,284	)
Equity in (loss) income of partnerships (2)		(3,433	)		819
Gain on sales of real estate, net		-			1,962
Loss on sales of interests in non operating real estate		-			(46	)
Net loss		(43,980	)		(13,549	)
Less: net loss attributable to noncontrolling interest		1,234			516
Net loss attributable to PREIT		(42,746	)		(13,033	)
Less: preferred share dividends		(6,844	)		(6,844	)
Net loss attributable to PREIT common shareholders	$	(49,590	)	$	(19,877	)

(1) Net of capitalized interest expense of $130 and $910 for the three months ended March 31, 2021 and 2020, respectively.

(2) Equity in (loss) income of partnerships is net of capitalized interest expense of $103 and $1,091 for the three months ended March 31, 2021 and 2020, respectively.

7

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share – Three Months Ended March 31, 2021 and 2020

(unaudited)

	Three Months Ended March 31,
(in thousands, except per share amounts)	2021			2020
Net loss	$	(43,980	)	$	(13,549	)
Noncontrolling interest		1,234			516
Preferred share dividends		(6,844	)		(6,844	)
Dividends on unvested restricted shares		—			(350	)
Net loss used to calculate loss per share—basic and diluted	$	(49,590	)	$	(20,227	)
Basic and diluted loss per share:	$	(0.64	)	$	(0.26	)
(in thousands of shares)
Weighted average shares outstanding—basic		77,647			76,774
Effect of common share equivalents(1)		—			—
Weighted average shares outstanding—diluted		77,647			76,774

(1) The Company had net losses used to calculate earnings per share for the three months ended March 31, 2021 and 2020. Therefore, the effects of common share equivalents are excluded from the calculation of diluted loss per share for these periods because they would be antidilutive.

8

Pennsylvania Real Estate Investment Trust

Reconciliation of Net Operating Income and Earnings Before Interest, Income Taxes, Depreciation, and Amortization for Real Estate (Non-GAAP Measures) - Three Months Ended March 31, 2021 and 2020

(in thousands)

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

	Same Store				Change						Non Same Store					Total
(in thousands of dollars)	2021		2020		$			%			2021			2020		2021		2020
NOI from consolidated properties	$	32,707	$	40,430	$	(7,723	)		(19.1	%)	$	(588	)	$	983	$	32,119	$	41,413
NOI attributable to equity method investments, at ownership share		5,060		7,435		(2,375	)		(31.9	%)		(18	)		9		5,042		7,444
Total NOI		37,767		47,865		(10,098	)		(21.1	%)		(606	)		992		37,161		48,857
Less: lease termination revenue		36		9		27			300.0	%		-			-		36		9
Total NOI excluding lease termination revenue	$	37,731	$	47,856	$	(10,125	)		(21.2	%)	$	(606	)	$	992	$	37,125	$	48,848

(1) NOI is a non-GAAP measure. See definition of NOI on page 30.

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

	Three Months Ended March 31,
	2021			2020
Net loss	$	(43,980	)	$	(13,549	)
Depreciation and amortization:
Consolidated		29,839			30,269
Unconsolidated properties at ownership share		3,187			3,610
Interest expense:
Consolidated		30,731			16,858
Unconsolidated properties at ownership share		5,246			2,969
Gain on sales of real estate, net		-			(1,962	)
EBITDAre	$	25,023		$	38,195

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

9

Pennsylvania Real Estate Investment Trust

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

Three Months Ended March 31, 2021 and 2020

(in thousands)

	Three Months Ended March 31,
	2021			2020
Net loss	$	(43,980	)	$	(13,549	)
Other income		(125	)		(293	)
Depreciation and amortization		29,839			30,269
General and administrative expenses		11,831			10,695
Provision for employee separation expenses		92			73
Project costs and other expenses	101			95
Interest expense, net		30,731			16,858
Equity in loss (income) of partnerships		3,433			(819	)
Reorganization expenses		197			-
Gain on sales of real estate, net		-			(1,962	)
Gain on sales of interest in non operating real estate		-			46
NOI from consolidated properties(1)	$	32,119		$	41,413

(1) NOI is a non-GAAP measure. See definition of NOI on page 30.

	Same Store						Non Same Store						Total
	2021			2020			2021			2020			2021			2020
Real estate revenue
Base rent	$	44,795		$	48,480		$	1,123		$	2,568		$	45,918		$	51,048
CAM reimbursement income		8,191			9,666			168			502			8,359			10,168
Real estate tax income		6,911			8,318			33			178			6,944			8,496
Percentage rent		(12	)		16			-			3			(12	)		19
Lease termination revenue		36			9			-			-			36			9
		59,921			66,489			1,324			3,251			61,245			69,740
Less: credit losses		(1,198	)		(1,892	)		(139	)		(127	)		(1,337	)		(2,019	)
Lease revenue		58,723			64,597			1,185			3,124			59,908			67,721
Expense reimbursements		3,786			4,012			113			293			3,899			4,305
Other real estate revenue		1,412			1,785			59			139			1,471			1,924
Total real estate revenue		63,921			70,394			1,357			3,556			65,278			73,950
Property operating expenses
CAM and real estate taxes		(26,214	)		(25,397	)		(1,616	)		(2,120	)		(27,831	)		(27,517	)
Utilities		(2,851	)		(2,679	)		(113	)		(243	)		(2,964	)		(2,922	)
Other property operating expenses		(2,149	)		(1,888	)		(216	)		(210	)		(2,364	)		(2,098	)
Total property operating expenses		(31,214	)		(29,964	)		(1,945	)		(2,573	)		(33,159	)		(32,537	)
NOI from consolidated properties(1)	$	32,707		$	40,430		$	(588	)	$	983		$	32,119		$	41,413
Less: Lease termination revenue		36			9			-			-			36			9
NOI from consolidated properties excluding lease termination revenue(1)	$	32,671		$	40,421		$	(588	)	$	983		$	32,083		$	41,404
% change in Same Store NOI from consolidated properties excluding lease termination revenue				(19.2%)

(1) NOI is a non-GAAP measure. See definition of NOI on page 30.

10

Pennsylvania Real Estate Investment Trust

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

Three Months Ended March 31, 2021 and 2020

(in thousands)

	Three Months Ended March 31,
(in thousands of dollars)	2021			2020
Equity in (loss) income of partnerships	$	(3,433	)	$	819
Other income		-			(14	)
Depreciation and amortization		3,187			3,610
Interest expense and other expenses, net		5,288			3,029
NOI from equity method investments at ownership share(1)	$	5,042		$	7,444

(1) NOI is a non-GAAP measure. See definition of NOI on page 30.

	Same Store						Non Same Store						Total
	2021			2020			2021			2020			2021			2020
Real estate revenue
Base rent	$	8,079		$	7,843		$	-		$	-		$	8,079		$	7,843
CAM reimbursement income		1,565			2,028			-			-			1,565			2,028
Real estate tax income		954			1,085			-			-			954			1,085
Percentage rent		65			77			92			-			157			77
Lease termination revenue		-			-			-			-			-			-
		10,663			11,033			92			-			10,755			11,033
Less: credit losses		(887	)		(333	)		-			-			(887	)		(333	)
Lease revenue		9,776			10,700			92			-			9,868			10,700
Expense reimbursements		482			591			-			-			482			591
Other real estate revenue		192			688			8			120			200			808
Total real estate revenue		10,450			11,979			100			120			10,550			12,099
Property operating expenses
CAM and real estate taxes		(4,189	)		(3,489	)		(108	)		(101	)		(4,297	)		(3,590	)
Utilities		(374	)		(316	)		-			-			(374	)		(316	)
Other property operating expenses		(827	)		(739	)		(10	)		(10	)		(837	)		(749	)
Total property operating expenses		(5,390	)		(4,544	)		(118	)		(111	)		(5,508	)		(4,655	)
NOI from equity method investments at ownership share(1)	$	5,060		$	7,435		$	(18	)	$	9		$	5,042		$	7,444
Less: Lease termination revenue		-			-			-			-			-			-
NOI from equity method investments at ownership share excluding lease termination revenue(1)	$	5,060		$	7,435		$	(18	)	$	9		$	5,042		$	7,444
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				(31.9%)

(1) NOI is a non-GAAP measure. See definition of NOI on page 30.

11

Pennsylvania Real Estate Investment Trust

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

Three Months Ended March 31, 2021 and 2020

(in thousands, except per share amounts)

	Three Months Ended March 31,
	2021			2020
FUNDS FROM OPERATIONS (1)
Net loss	$	(43,980	)	$	(13,549	)
Depreciation and amortization on real estate:
Consolidated properties		29,491			29,944
PREIT's share of equity method investments		3,187			3,610
Gain on sale of interests in real estate, net		-			(1,962	)
Dividends on preferred shares(2)		-			(6,844	)
Funds from operations attributable to common shareholders and OP Unit holders(1)		(11,302	)		11,199
Provision for employee separation expenses		92			73
Gain on hedge ineffectiveness		(1,303	)		-
Reorganization expenses		197			-
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders	$	(12,316	)	$	11,272

FUNDS AVAILABLE FOR DISTRIBUTION(1)
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders(1)	$	(12,316	)	$	11,272
Adjustments:
Straight line rent		(166	)		(1,013	)
Recurring capital expenditures		(222	)		(1,034	)
Tenant allowances		(1,463	)		(1,017	)
Amortization of non-cash deferred compensation		1,322			1,624
Capitalized leasing costs		(1	)		(164	)
Amortization of above- and below-market lease intangibles		(15	)		(17	)
Funds available for distribution to common shareholders and OP Unit holders(1)	$	(12,860	)	$	9,651
Funds from operations attributable to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	(0.14	)	$	0.14
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit	$	(0.15	)	$	0.14
Funds available for distribution to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	(0.16	)	$	0.12

Weighted average number of shares outstanding	77,647	76,774
Weighted average effect of full conversion of OP Units	1,976	2,023
Effect of common share equivalents	691	520
Total weighted average shares outstanding, including OP Units	80,314	79,317

(1) Non-GAAP measures. See definitions on page 30.

(2) Does not include the impact of $6.8 million of accrued, undeclared and unpaid preferred share dividends for the three months ended March 31, 2021. The Company cannot declare and pay cash dividends on common shares while there exists a preferred dividend arrearage.

12

Pennsylvania Real Estate Investment Trust

Condensed Consolidated Balance Sheets

	March 31, 2021			December 31, 2020
(in thousands, except per share amounts)	(Unaudited)
ASSETS:
INVESTMENTS IN REAL ESTATE, at cost:
Operating properties	$	3,173,436		$	3,168,536
Construction in progress		44,201			46,285
Land held for development		5,516			5,516
Total investments in real estate		3,223,153			3,220,337
Accumulated depreciation		(1,336,228	)		(1,308,427	)
Net investments in real estate		1,886,925			1,911,910
INVESTMENTS IN PARTNERSHIPS, at equity:		21,597			27,066
OTHER ASSETS:
Cash and cash equivalents		44,637			43,309
Tenant and other receivables, net		40,413			54,532
Intangible assets		11,037			11,392
Deferred costs and other assets, net		125,061			127,593
Assets held for sale		1,384			1,384
Total assets	$	2,131,054		$	2,177,186
LIABILITIES:
Mortgage loans payable, net	$	874,926		$	884,503
Term Loans, net		921,767			908,473
Revolving Facility		54,830			54,830
Tenants’ deposits and deferred rent		10,639			8,899
Distributions in excess of partnership investments		75,047			76,586
Fair value of derivative liabilities		19,388			23,292
Accrued expenses and other liabilities		88,219			93,663
Total liabilities		2,044,816			2,050,246
COMMITMENTS AND CONTINGENCIES (Note 8)
EQUITY:
Series B Preferred Shares, $.01 par value per share; 25,000 shares authorized; 3,450 shares issued and outstanding; liquidation preference of $91,020 and $89,430 at March 31, 2021 and December 31, 2020, respectively		35			35
Series C Preferred Shares, $.01 par value per share; 25,000 shares authorized; 6,900 shares issued and outstanding; liquidation preference of $181,815 and $178,710 at March 31, 2021 and December 31, 2020, respectively		69			69
Series D Preferred Shares, $.01 par value per share; 25,000 shares authorized; 5,000 shares issued and outstanding; liquidation preference of $131,446 and $129,297 at March 31, 2021 and December 31, 2020, respectively		50			50
Shares of beneficial interest, $1.00 par value per share; 200,000 shares authorized; 79,260 and 79,537 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively		79,260			79,537
Capital contributed in excess of par		1,772,728			1,771,777
Accumulated other comprehensive loss		(18,080	)		(20,620	)
Distributions in excess of net income		(1,742,384	)		(1,699,638	)
Total equity—Pennsylvania Real Estate Investment Trust		91,678			131,210
Noncontrolling interest		(5,440	)		(4,270	)
Total equity		86,238			126,940
Total liabilities and equity	$	2,131,054		$	2,177,186

13

Pennsylvania Real Estate Investment Trust

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

(in thousands)

(in thousands of dollars)	March 31, 2021			December 31, 2020
ASSETS:
Investments in real estate, at cost:
Operating properties	$	387,196		$	452,012
Construction in progress		18,311			117,551
Total investments in real estate		405,507			569,563
Accumulated depreciation		(113,218	)		(116,923	)
Net investments in real estate		292,289			452,640
Cash and cash equivalents		14,526			10,952
Deferred costs and other assets, net		75,090			51,054
Total assets		381,905			514,646
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		222,218			224,800
FDP Term Loan, net		100,500			100,500
Partnership Loan		53,033			50,000
Other liabilities		59,604			57,949
Total liabilities		435,355			433,249
Net investment	$	(53,450	)	$	81,397
Reconciliation to comparable GAAP balance sheet item:
Investment in partnerships, at equity	$	21,597		$	167,167
Distributions in excess of partnership investments		(75,047	)		(85,770	)
Net investments and advances	$	(53,450	)	$	81,397

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.

14

Pennsylvania Real Estate Investment Trust

Leasing Activity Summary – Three Months Ended March 31, 2021

		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		23		59,021		6.0	$	42.77	N/A		N/A			N/A			N/A			$	3.02
	Unconsolidated(4)		3		5,393		7.2		67.49	N/A		N/A			N/A			N/A				23.31
Total Under 10k sf			26		64,414		6.1	$	44.84	N/A		N/A			N/A			N/A			$	5.00
Over 10k sf	Unconsolidated(4)		4		176,946		21.4		8.21		-		-		N/A			N/A				0.64
Total New Leases			30		241,360		17.3	$	17.99	N/A		N/A			N/A			N/A			$	1.06
Renewal Leases
Under 10k sf	Consolidated		64		83,537		5.2	$	84.79	$	87.81	$	(3.02	)		(3.4	%)		2.2	%	N/A
	Unconsolidated(4)		8		38,804		2.2		35.55		47.61		(12.06	)		(25.3	%)		(18.2	%)	N/A
Total Under 10k sf			72		122,341		4.2	$	69.17	$	75.06	$	(5.89	)		(7.8	%)		(1.7	%)	N/A
Over 10k	Consolidated		2		38,131		5.0		16.01		16.03		(0.02	)		(0.1	%)		0.2	%	N/A
	Unconsolidated(4)		-		-		-		-		-		-			-			-		N/A
Total Over 10k sf			2		38,131		5.0		16.01		16.03		(0.02	)		(0.1	%)		0.2	%	N/A
Total Fixed Rent			74		160,472		4.4	$	56.54	$	61.03	$	(4.49	)		(7.4	%)		(1.6	%)	N/A
Total Percentage in Lieu	Consolidated		37		151,276		1.5		23.55		24.22		(0.68	)		(2.8	%)	N/A			N/A
Total Renewal Leases			111		311,748		3.0	$	40.53	$	43.17	$	(2.64	)		(6.1	%)				N/A
Total Non Anchor			141		553,108		9.2	$	30.69
Anchor
New Leases			1		104,107		10.0	$	2.40	N/A		N/A			N/A			N/A			$	0.48
Renewal Leases	Consolidated		3		482,475		4.5		3.91	$	3.95	$	(0.04	)		(1.0	%)	N/A			N/A
Total			4		586,582		5.9	$	3.64

(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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 for further details on our ownership interests in our unconsolidated properties.

15

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages

	March 31, 2021(1)																	March 31, 2020
						Actual Occupancy						Leased Occupancy																Actual Occupancy
	% Rolling 12 Mo. NOI			Average Gross Rent(2)(3)		Total			Non- Anchor			Total			Non- Anchor			% Rolling 12 Mo. NOI			Average Comp Sales		Average Gross Rent(2)(3)		Occupancy Cost(4)			Total			Non- Anchor
Malls		90.8	%	$	56.86		89.2	%		87.0	%		90.7	%		88.2	%		89.3	%	$	542	$	59.21		12.3	%		92.9	%		90.3	%
Non- Same Store Mall				$	65.30		67.1	%		72.6	%		73.0	%		80.1	%						$	58.43					71.6	%		63.6	%
Non-Core Malls		1.5	%	$	38.10		58.3	%		47.7	%		58.3	%		47.7	%		3.1	%	$	313	$	46.16		15.3	%		57.1	%		61.3	%
Malls Total		92.2	%	$	56.74		86.0	%		84.2	%		87.8	%		85.9	%		92.4	%	$	534	$	58.80		12.3	%		89.6	%		87.0	%
Other Retail Properties		7.1	%	$	24.23		86.1	%		85.0	%		87.6	%		86.6	%		5.8	%	n/a		$	25.40	n/a				89.9	%		89.0	%
Total Retail Properties		99.3	%	$	47.84		86.0	%		84.3	%		87.8	%		86.0	%		98.2	%	n/a		$	50.01	n/a				89.6	%		87.3	%
Sold Properties		0.1	%	n/a		n/a			n/a			n/a			n/a				1.3	%	n/a		$	42.69	n/a				66.1	%		82.0	%
Other Properties (4)		0.6	%	n/a		n/a			n/a			n/a			n/a				0.5	%	n/a		n/a		n/a			n/a			n/a
Total Portfolio		100.0	%	$	47.84		86.0	%		84.3	%		87.8	%		86.0	%		100.0	%	$	534	$	49.87		12.3	%		89.0	%		87.2	%

(1) Average comp sales are not reported for 2021 due to COVID-19 related mall closures and operational limitations impacting 2020 activity. As a result of these closures and related limitations, comparisons are not meaningful.

(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 $21.26 per square foot as of March 31, 2021 and $21.99 per square foot as of March 31, 2020.

(4) Occupancy Cost is not included in 2021 due to Average Comp Sales not being presented for 2021.

16

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot

	March 31, 2021										March 31, 2020									Change
	% of Mall NOI			Avg Comp Sales (1)	Total Occupancy %			Non- Anchor Occupancy %			Avg Comp Sales (2)		Total Occupancy %				Non-Anchor Occupancy %			Avg Comp Sales (1)	Total Occupancy %			Non- Anchor Occupancy %
Top 6 Malls
Willow Grove Park		6.3	%	n/a		91.7	%		85.5	%		769		97.1	%			95.2	%	n/a		(5.4	%)		(9.7	%)
Cherry Hill Mall		13.3	%	n/a		91.5	%		89.8	%		733		94.2	%			93.0	%	n/a		(2.7	%)		(3.2	%)
Woodland Mall		6.3	%	n/a		85.7	%		83.1	%		642		95.9	%			95.1	%	n/a		(10.2	%)		(12.0	%)
Lehigh Valley Mall		6.5	%	n/a		86.1	%		77.6	%		589		89.9	%			83.3	%	n/a		(3.8	%)		(5.7	%)
Mall at Prince Georges		7.8	%	n/a		82.1	%		96.1	%		573		98.3	%			96.4	%	n/a		(16.2	%)		(0.3	%)
Springfield Town Center		10.5	%	n/a		87.6	%		83.3	%		570		92.0	%	%		89.3	%	n/a		(4.4	%)		(6.0	%)
		50.7	%	n/a		87.2	%		85.5	%		651		94.3	%			91.5	%	n/a		(7.1	%)		(6.0	%)
Malls 7-12
Dartmouth Mall		4.9	%	n/a		96.6	%		95.0	%		548		99.1	%			98.7	%	n/a		(2.5	%)		(3.7	%)
Jacksonville Mall		4.8	%	n/a		98.6	%		97.2	%		517		96.1	%			92.4	%	n/a		2.5	%		4.8	%
Magnolia Mall		3.6	%	n/a		77.8	%		92.0	%		463		97.3	%			95.4	%	n/a		(19.5	%)		(3.5	%)
Capital City Mall		6.0	%	n/a		98.7	%		98.1	%		455		98.9	%			98.4	%	n/a		(0.2	%)		(0.3	%)
Patrick Henry Mall		4.7	%	n/a		92.6	%		89.2	%		455		93.8	%			90.9	%	n/a		(1.2	%)		(1.7	%)
Viewmont Mall		4.5	%	n/a		95.8	%		91.3	%		441		97.1	%			94.0	%	n/a		(1.3	%)		(2.7	%)
		28.4	%	n/a		92.9	%		93.8	%		473		97.1	%			95.2	%	n/a		(4.2	%)		1.3	%
Malls 13-18
Valley Mall		4.7	%	n/a		97.7	%		94.9	%		424		98.8	%			97.5	%	n/a		(1.1	%)		(2.6	%)
Moorestown Mall		2.0	%	n/a		93.6	%		85.7	%		416		79.9	%			83.5	%	n/a		13.7	%		2.2	%
Springfield Mall		1.5	%	n/a		83.9	%		83.9	%		398		93.7	%			93.7	%	n/a		(9.8	%)		(9.8	%)
Cumberland Mall		3.3	%	n/a		79.1	%		85.3	%		388		87.5	%			79.6	%	n/a		(8.4	%)		5.7	%
Francis Scott Key Mall		3.9	%	n/a		90.4	%		84.9	%		376		93.9	%			90.4	%	n/a		(3.5	%)		(5.5	%)
Plymouth Meeting Mall		4.1	%	n/a		82.8	%		74.6	%		358		83.2	%			75.0	%	n/a		(0.4	%)		(0.4	%)
		19.4	%	n/a		88.7	%		83.9	%		395		88.4	%			85.0	%	n/a		0.3	%		(1.1	%)
All Core Malls		98.4	%	n/a		89.2	%		87.0	%		542		92.9	%			90.3	%	n/a		(3.7	%)		(3.3	%)
Non-Core Malls
Valley View Mall (3)		0.9	%	n/a	n/a			n/a			n/a			66.1	%			82.0	%	n/a	n/a			n/a
Exton Square Mall		0.7	%	n/a		58.3	%		47.7	%		313		57.1	%			61.3	%	n/a		1.2	%		(13.6	%)
All Non-Core Malls		1.6	%	n/a		58.3	%		47.7	%		313		60.1	%			68.8	%	n/a		(1.8	%)		(21.1	%)
Non Same Store Mall
Fashion District Philadelphia	n/a			n/a		67.1	%		72.6	%	n/a			71.6	%			63.6	%	n/a	n/a			n/a
All Non Same Store Malls						67.1	%		72.6	%				71.6	%			63.6	%
All Malls		100.0	%	n/a		86.0	%		84.2	%		534		88.9	%			86.9	%	n/a		(3.0	%)		(2.9	%)

(1) Average comp sales are not reported due to COVID-19 related mall closures impacting 2021.

(2) 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.

(3) In August of 2020 the company derecognized the assets of Valley View Mall as a loss of control of the property. We still recognize the mortgage balance of $27.2 million until the foreclosure process is complete.

17

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants

March 31, 2021

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	40		7		47			4.9	%
L Brands, Inc.	Bath & Body Works, Pink, Victoria's Secret	32		6		38			4.2	%
Signet Jewelers Limited	Kay Jewelers, Piercing Pagoda, Totally Pagoda, Zales Jewelers, Silver & Gold Connection	46		10		56			3.2	%
Dick's Sporting Goods, Inc.	Dick's Sporting Goods	11		1		12			3.1	%
American Eagle Outfitters, Inc.	Aerie, American Eagle Outfitters	15		6		21			2.6	%
Express, Inc	Express, Express Factory Outlet, Express Men	10		4		14			2.0	%
Dave & Buster's, Inc.	Dave & Buster's	3			1	4			1.9	%
Macy's	Bloomingdale's, Macy's	12		2		14			1.8	%
Gap, Inc.	Banana Republic, Gap/Gap Kids/Gap Outlet, Old Navy, Old Navy Outlet, Banana Republic Factory Store	10		8		18			1.7	%
Sycamore Partners	Hot Topic, Talbots, Torrid, AnnTaylor, Loft, Lane Bryant, Belk	33			9	42			1.7	%
Genesco Inc.	Johnston & Murphy, Journeys, Journeys Kidz, Underground by Journeys	23		5		28			1.7	%
Cineworld Group	Regal Cinemas	4			-	4			1.6	%
Copper Retail JV LLC	JC Penney, Penneys Firestone	10		1		11			1.5	%
Luxottica Group S.p.A.	Lenscrafters, Pearle Vision, Sunglass Hut, Sunglass Hut Outlet	21		7		28			1.3	%
Darden Concepts, Inc.	Bahama Breeze, Capital Grille, Olive Garden, Seasons 52, Yard House	8			-	8			1.3	%
H&M Hennes & Muritz L.P.	H & M	12			1	13			1.3	%
AMC Entertainment Holdings, Inc.	AMC	3			1	4			1.1	%
Shoe Show, Inc.	Shoe Department, Shoe Dept. Encore, Shoe Show	20		2		22			1.1	%
The TJX Companies, Inc.	HomeGoods, HomeSense, Marshalls, Sierra Trading Post, TJ Maxx	7		1		8			1.1	%
Focus Brands	Auntie Anne's, Cinnabon, Jamba Juice, Moe's Southwest Grill	28			6	34			1.0	%
Total Top 20 Tenants		348		78		426			40.1	%
Total Leases			1,286	356			1,642		100.0	%

(1) Includes our share of tenant gross rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments as of March 31, 2021

18

Pennsylvania Real Estate Investment Trust

Lease Expirations as of March 31, 2021

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

Non-Anchors
			Gross Leasable Area ("GLA")					Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA (1)		Percent of Total			Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year (2)		Percent of PREIT’s Total			Average Expiring Gross Rent psf
2021 and Prior		214		477,506		6.0	%		22,423		20,897		7.7	%		46.96
2022		261		942,783		11.8	%		36,335		31,288		11.5	%		38.54
2023		221		1,228,018		15.4	%		43,343		37,718		13.8	%		35.30
2024		187		785,589		9.8	%		38,112		34,201		12.5	%		48.51
2025		178		1,039,060		13.1	%		42,450		33,605		12.3	%		40.85
2026		128		749,086		9.4	%		33,904		26,785		9.8	%		45.26
2027		88		633,647		7.9	%		24,316		22,260		8.2	%		38.37
2028		75		602,261		7.5	%		22,051		20,670		7.6	%		36.61
2029		82		604,924		7.6	%		24,045		19,150		7.0	%		39.75
2030		64		443,667		5.6	%		17,487		14,202		5.2	%		39.42
Thereafter		39		473,961		5.9	%		15,709		11,865		4.4	%		33.14
Total/Average		1,537		7,980,502		100.0	%	$	320,175	$	272,641		100.0	%	$	40.12

Anchors
			Gross Leasable Area ("GLA")					Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA (1)		Percent of Total			Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year (2)		Percent of PREIT’s Total			Average Expiring Gross Rent psf
2021 and prior		4		504,204		10.7	%		1,434		919		3.3	%		2.84
2022		4		467,276		9.9	%		2,437		2,082		7.5	%		5.22
2023		3		348,592		7.4	%		1,895		1,895		6.8	%		5.44
2024		5		702,674		14.9	%		3,248		3,248		11.6	%		4.62
2025		5		720,381		15.3	%		2,900		2,900		10.4	%		4.03
2026		4		299,359		6.4	%		2,968		2,265		8.1	%		9.91
2027		1		225,000		4.8	%		996		996		3.6	%		4.43
2028		9		982,424		20.9	%		6,820		6,820		24.4	%		6.94
2029		1		65,155		1.4	%		2,210		2,210		7.9	%		33.92
2030		2		85,723		1.8	%		1,511		1,511		5.4	%		17.63
Thereafter		4		303,743		6.5	%		3,074		3,074		11.0	%		10.12
Total/Average		42		4,704,531		100.0	%	$	29,493	$	27,920		100.0	%	$	6.27

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

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

19

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2021

		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		177,187		6,551		623,348
		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		239,234		386,390		71,006		1,313,515
						Macy's		304,600
Cumberland Mall	Vineland, NJ (6)	The Home Depot	2024		132,013	BJ's Wholesale Club		117,889		168,249		141,312		141,968		951,217
		Dick's Sporting Goods	2028		50,000	Boscov's		155,341
		Regal Cinemas	2024							44,445
Dartmouth Mall	Dartmouth, MA	JCPenney	2024		100,020	Macy's		140,000		119,050		144,404		16,153		608,455
		Burlington	2030		43,840
		AMC Theaters	2026							44,988
Francis Scott Key Mall	Frederick, MD	JCPenney	2026		101,293	Macy's		139,333		124,272		159,067		59,269		754,267
		Sears	2023		120,883
		Dick's Sporting Goods	2025							50,150
Jacksonville Mall	Jacksonville, NC	Belk	2026		72,510					123,079		120,863		7,088		493,145
		JCPenney	2025		51,812
		Sears	2021		117,793
Lehigh Valley Mall	Allentown, PA	Boscov's	2022		164,694	JCPenney		207,292		174,331		298,073		136,530		1,192,920
		Macy's	2022		212,000
Magnolia Mall	Florence, SC (2)	Belk	2028		115,793					96,175		125,741		131,408		591,860
		Best Buy	2023		32,054
		Dick's Sporting Goods	2023							45,000
		Burlington	2028							45,689
Moorestown Mall	Moorestown, NJ (4)	Boscov's	2028		202,765					232,014		167,274		60,827		954,800
		Sears	2021		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		205,987		32,130		717,831
		JCPenney	2025		85,212	Macy's		140,000
Plymouth Meeting Mall	Plymouth Meeting, PA	Boscov's	2028		188,429					148,275		177,171		158,122		917,844
		Whole Foods	2029		65,155
		Burlington	2030		41,883
		Dick's Sporting Goods	2031							57,588
		AMC Theaters	2027							48,000
		LEGOLAND Discovery Center	2032							33,221
Springfield Mall	Springfield, PA					Macy's		192,000		20,577		166,326		35,933		610,735
						Target		195,899
Springfield Town Center	Springfield, VA	Macy's	2025		252,245	JCPenney		209,144		168,618		274,642		122,241		1,373,955
						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 (3)	Macy's	2023		195,655					177,988		253,301		166,408		928,538
		Target	2024		135,186

20

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2021

		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		200,031		18,816		827,735
		Belk	2028		123,094
		Regal Cinemas	2029							53,059
		Dick's Sporting Goods	2031		62,416
		Onelife Fitness	2033		70,000
		Tilt Studio	2028		47,841
Viewmont Mall	Scranton, PA	JCPenney	2025		193,112	Macy's		139,801		65,843		154,846		23,047		689,226
		Dick's Sporting Goods/Field & Stream	2028		90,000
		HomeGoods	2027							22,577
Willow Grove Park	Willow Grove, PA	Macy's	2027		225,000	Bloomingdale's		237,537		78,219		226,712		51,810		1,035,194
		Nordstrom Rack	2022		40,332	Sears(1)		175,584
Woodland Mall	Grand Rapids, MI	Von Maur	2119		86,165	JCPenney		254,905		115,714		284,420		81,402		979,922
						Macy's		157,316
Total Core Malls					4,163,479			3,385,924		3,030,648		3,663,747		1,320,709		15,564,507
Other Malls and Retail Properties
Exton Square Mall	Exton, PA	Boscov's	2024		178,000	Macy's		181,200		91,281		144,016		337,277		990,145
		Round 1	2026		58,371
Fashion District Philadelphia	Philadelphia, PA (5)	Burlington	2032		85,162					179,365		132,923		274,547		835,068
		AMC	2034							36,535
		Round 1	2029							58,080
		City Winery	2037							29,762
		H&M	2030							38,694
Gloucester Premium Outlets	Blackwood, NJ									49,479		233,213		94,279		376,971
Metroplex Shopping Center	Plymouth Meeting, PA	Giant Food Store	2026		67,185	Lowe's		163,215		269,329		43,387		72,385		777,695
						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		37,570		60,118		703,909
						The Home Depot		130,751
		Dick's Sporting Goods	2026							49,381
Valley View Center	La Crosse, WI	Dick's Sporting Goods	2025							45,000		15,272		-		60,272
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					448,338			929,142		1,369,269		621,588		838,606		4,206,943
Total Portfolio					4,611,817			4,315,066		4,399,917		4,285,335		2,159,315		19,771,450

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

(2)Approximately 104,000 square feet of this space is a vacant JC Penney that has been leased to Tilt Studios.

(3)Approximately 148,000 square feet of this space is a vacant JC Penney.

(4)Approximately 121,000 square feet of this space is a vacant Lord & Taylor that is currently occupied by a State of New Jersey Vaccine Megasite.

(5)Approximately 95,000 square feet of this space is a vacant Century 21, part of which has been leased to Shoppers World.

(6)Approximately 80,000 square feet of this space is a vacant Burlington, which we currently have a lease out to replace.

21

Pennsylvania Real Estate Investment Trust

Investment in Real Estate - Consolidated Properties

(in thousands)

	March 31, 2021
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Debt(1)
Core Malls
Capital City Mall	$	137,230	$	1	$	57,854	$	79,377	$	-
Cherry Hill Mall		488,113		253		282,778		205,588		261,009
Cumberland Mall		84,077		-		35,065		49,012		40,399
Dartmouth Mall		90,888		950		48,951		42,887		56,458
Francis Scott Key Mall		98,200		-		47,109		51,091		68,271
Jacksonville Mall		94,056		-		44,127		49,929		-
Magnolia Mall		108,510		-		54,644		53,866		-
Moorestown Mall		190,760		55		83,466		107,349		-
Patrick Henry Mall		157,067		-		78,929		78,138		86,567
Plymouth Meeting Mall		236,382		5,475		111,455		130,402		-
The Mall at Prince Georges		144,998		2,380		71,755		75,623		-
Springfield Town Center		496,490		-		85,717		410,773		-
Valley Mall		147,276		1,229		55,160		93,345		-
Viewmont Mall		121,835		-		55,508		66,327		67,185
Willow Grove Park		234,720		33,749		116,213		152,256		151,932
Woodland Mall		285,536		109		91,012		194,633		116,950
Total Core Malls		3,116,138		44,201		1,319,743		1,840,596		848,772
Non-Core Malls
Exton Square Mall		49,002		-		13,856		35,146		-
Valley View Center (2)		8,296		-		2,629		5,667		27,212
Total Non-Core Malls		57,298		-		16,485		40,813		27,212
Total Malls	$	3,173,436	$	44,201	$	1,336,228	$	1,881,409	$	875,984
Other Properties
Land held for development		5,516		-		-		5,516		-
Total Other Properties	$	5,516	$	-	$	-	$	5,516	$	-
Total Investment in Real Estate	$	3,178,952	$	44,201	$	1,336,228	$	1,886,925	$	875,984
Land parcels held for sale
Moorestown Mall		434		-		-		434		-
Woodland Mall		1,054		-		-		1,054		-
Total held for sale	$	1,488	$	-	$	-	$	1,488	$	-

(1) Refer to page 25 for further debt information.

(2) The mortgage of $27.2 million is outstanding on Valley View Mall. In the third quarter of 2020, the Company derecognized the assets of Valley View Mall as a result of the property being assigned to a special servicer. The Company will continue to recognize the mortgage until the foreclosure process is complete.

22

Pennsylvania Real Estate Investment Trust

Investment in Real Estate – Equity Method Investments at Ownership Share

(in thousands)

	March 31, 2021
	Operating Properties and Land Held for Development		Construction in Progress			Accumulated Depreciation			Net Real Estate		Debt(1)
Unconsolidated Malls
Fashion District Philadelphia	$	150,601	$	13,286		$	(1,432	)	$	162,455	$	153,533
Lehigh Valley Mall		55,499		1,166			(30,421	)		26,244		94,089
Springfield Mall		58,734		60			(25,929	)		32,865		29,457
Total Unconsolidated Malls	$	264,834	$	14,512		$	(57,782	)	$	221,564	$	277,079
Unconsolidated Other Retail Properties
Gloucester Premium Outlets		28,024		40			(6,092	)		21,972		21,500
Metroplex Shopping Center		44,955		2,987			(27,916	)		20,026		36,183
The Court at Oxford Valley		28,411		8			(13,498	)		14,921		25,928
Red Rose Commons		14,626		(20	)		(5,522	)		9,084		12,544
Total Unconsolidated Other Retail Properties	$	116,016	$	3,015		$	(53,028	)	$	66,003	$	96,156
Unconsolidated Property Under Development
Pavilion at Market East		6,346		784			(2,408	)		4,722	$	3,034
Total Investment in Real Estate	$	387,196	$	18,311		$	(113,218	)	$	292,289	$	376,269

(1) Refer to page 25 for further debt information.

23

Pennsylvania Real Estate Investment Trust

Capital Expenditures

Three Months Ended March 31, 2021

(in thousands)

	Three Months Ended March 31, 2021
	Consolidated		PREIT's Share of Equity Method Investments		Total
Redevelopment projects with incremental GLA and/or anchor replacement (1)	$	1,174	$	1,374	$	2,548
Tenant allowances		1,457		6		1,463
Recurring capital expenditures:
CAM expenditures		177		22		199
Non-CAM expenditures		9		14		23
Total recurring capital expenditures		186		36		222
Total	$	2,817	$	1,416	$	4,233

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

24

Pennsylvania Real Estate Investment Trust

Debt Analysis as of March 31, 2021

(in thousands)

	Outstanding Debt
	Fixed Rate (1)			% of Total Indebtedness			Variable Rate			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable (2)	$	688,378			30.7	%	$	187,606			8.4	%	$	875,984			39.1	%
Unconsolidated mortgage loans payable (3)		198,202			8.8	%		24,534			1.1	%		222,736			9.9	%
Consolidated Term Loans (4)		550,000			24.5	%		383,634			17.1	%		933,634			41.7	%
Unconsolidated Term Loans (5)		53,033			2.4	%		100,500			4.5	%		153,533			6.9	%
2020 Revolving Facility		-			0.0	%		54,830			2.4	%		54,830			2.4	%
Total Outstanding Debt	$	1,489,613			66.5	%	$	751,104			33.5	%	$	2,240,717			100.0	%
Average Stated Interest Rate		5.99	%					6.79	%					6.20	%

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

(2) Excludes deferred financing costs of $1,058.

(3) Reflects our share of mortgage debt of equity method investees. Excludes our share of deferred financing costs of $518.

(4) Excludes deferred financing costs of $11,867.

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

		Average Debt Balance
		Mortgage Debt			Revolving Facility		Term Loans		Total
Beginning Balance	12/31/2020	$	1,109,422		$	54,830	$	1,072,619		2,236,871
Second Lien PIK Interest	3/31/2021		-			-		11,514		11,514
2020 FDP Partnership Loan Accrued Interest	3/31/2021		-			-		3,034		3,034
Mortgage loan amortization, including our share of debt of equity method investees	3/31/2021		(10,702	)		-		-		(10,702	)
Ending Balance	3/31/2021	$	1,098,720		$	54,830	$	1,087,167	$	2,240,717
Weighted Average Balance		$	1,106,200		$	54,830	$	1,076,477	$	2,237,507

(continued next page)

25

Pennsylvania Real Estate Investment Trust

Debt Analysis as of March 31, 2021

(in thousands)

Debt Maturities(1)
Year	Scheduled Amortization		Deferred Financing Cost Amortization - Mortgages			Mortgage Balance at Initial Maturity Date		2020 Revolving Facility		Term Loans		Deferred Financing Cost Amortization - Term Loans			Total Debt
2021	$	18,961	$	(396	)	$	249,718	$	-	$	-	$	(5,341	)	$	262,942
2022		17,390		(301	)		377,489		54,830		933,634		(6,526	)		1,376,516
2023		10,018		(195	)		86,801		-		100,500		-			197,124
2024		9,291		(185	)		-		-		-		-			9,106
2025		7,234		(175	)		237,644		-		-		-			244,703
Thereafter		4,386		(324	)		79,789		-		53,033		-			136,883
	$	67,280	$	(1,576	)	$	1,031,441	$	54,830	$	1,087,167	$	(11,867	)	$	2,227,274

(1) The weighted average period to total debt maturity is 2.13 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
2021	$	252,854		3.89	%
2022		391,179		4.08	%
2023		92,641		4.37	%
2024		-		0.00	%
2025		267,957		4.09	%
Thereafter		94,089		4.06	%
Total	$	1,098,720		4.06	%

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

26

Pennsylvania Real Estate Investment Trust

Debt Schedule as of March 31, 2021

(in thousands)

	Debt			Interest Rate			Annual Debt Service		Balance at Maturity				Initial Maturity Date	Fully Extended Maturity Date
Fixed Rate Mortgage Loans
Red Rose Commons (2)	$	12,544			5.14	%	$	978	$	12,379			July 2021	July 2021
The Court at Oxford Valley (2)		25,928			5.56	%		2,058		25,782			July 2021	July 2021
Cumberland Mall		40,399			4.40	%		3,433		38,157			August 2022	August 2022
Cherry Hill Mall		261,009			3.90	%		16,980		251,120			September 2022	September 2022
Francis Scott Key Mall (1)		64,800			5.52	%		5,331		66,712			January 2022	January 2023
Dartmouth Mall		56,458			3.97	%		3,825		53,299			April 2023	April 2023
Metroplex Shopping Center (2)		36,183			5.00	%		2,818		33,502			October 2023	October 2023
Patrick Henry Mall		86,567			4.35	%		5,748		77,591			July 2025	July 2025
Springfield Mall (2)		29,457			4.45	%		1,964		26,299			October 2025	October 2025
Willow Grove Park		151,932			3.88	%		9,599		133,754			October 2025	October 2025
Lehigh Valley Mall (2)		94,089			4.06	%		5,768		79,789			November 2027	November 2027
Valley View Mall (3)		27,212			5.95	%		-		27,212			July 2020	July 2020
Total Fixed Rate Mortgage Loans	$	886,580			4.29	%	$	58,502	$	825,596
Variable Rate Mortgage Loans
Pavilion East Associates (3)	$	3,034			2.98	%	$	190	$	3,009			February 2021	May 2021
Viewmont Mall		67,185			2.46	%		1,652		67,185			March 2021	May 2021
Gloucester Premium Outlets (3)		21,500			1.62	%		347		21,500			March 2022	March 2023
Francis Scott Key Mall		3,471			2.72	%		94		66,712			January 2022	January 2023
Woodland Mall		116,950			3.75	%		8,586		114,150			December 2021	December 2022
Total Variable Rate Mortgage Loans	$	212,140			3.10	%	$	10,869	$	272,556
Total Mortgage Loans	$	1,098,720			4.06	%	$	69,371	$	1,098,152
Consolidated Mortgage Loans	$	875,984			4.02	%	$	55,248	$	895,893
Consolidated Deferred Financing Fees		(1,058	)	n/a			n/a		n/a
Unconsolidated Mortgage Loans		222,736			4.25	%		69,371		202,259
Unconsolidated Deferred Financing Fees (3)		(518	)	n/a			n/a		n/a
First Lien Term Loan (1)		384,092			8.20	%		31,498		384,092			December 2022	December 2023
Second Lien Term Loan (1)		549,541			8.93	%		49,082		549,541	(4	)	December 2022	December 2023
2018 FDP Term Loan		100,500			4.00	%		4,020		100,500			January 2023	January 2023
Term Loan Deferred Financing Fees		(11,867	)	n/a			n/a		n/a
First Lien Revolver		54,830			4.00	%		2,193		54,830			December 2022	December 2022
2020 FDP Partnership Loan		53,033			15.00	%		7,955		53,033	(4	)	December 2027	December 2027
Total	$	2,227,274			6.22	%	$	219,366	$	2,240,149
Amortization of Deferred Financing Fees	0				0.27	%	—		—
Effective Interest Rate	$	2,227,274			6.49	%	$	219,366	$	2,240,149

(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.

(3) The mortgage of $27.2 million is outstanding on Valley View Mall. In the third quarter of 2020, the Company derecognized the assets of Valley View Mall as a result of the property being assigned to a special servicer. The Company will continue to recognize the mortgage until the foreclosure process is complete. The Company has no annual debt service on the property.

(4) The balances at maturity are subject to increase as additional interest accrues to the principal balances of the loans.

27

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios

	March 31, 2021
Debt Yield Ratio
Maintain a minimum Debt Yield Ratio (Senior) of 11.35% from and after June 30, 2021	(1)
Maintain a minimum Debt Yield Ratio (Corporate) of (a) 6.50% from June 30, 2021 through and including September 30, 2021 and (b) 7.25% from and after October 1, 2021	(1)
Liquidity
Maintain minimum liquidity of at least $25.0 million, to be comprised of unrestricted cash held in certain deposit accounts subject to control agreements	$103.6 million

(1) The First Lien Credit Agreement and Second Lien Credit Agreement (collectively, the "Credit Agreements"), contain identical affirmative and negative covenants customarily found in such agreements, including requirements that the Company, on a consolidated basis, maintain certain financial ratios and liquidity. All capitalized terms used on this page have the meanings ascribed to such terms in the Credit Agreements.  In addition to the ratios set forth herein, there are several other requirements set forth in the covenants under the Credit Agreements with which the Company must comply. As of March 31, 2021, we were in compliance with terms under the Credit Agreements, however, a material decline in future operating results could affect our ability to comply with the financial covenants, including additional covenants that come into effect starting on June 30, 2021.

28

Pennsylvania Real Estate Investment Trust

Forward Looking Statements

FORWARD LOOKING STATEMENTS

This Quarterly Supplemental and Operating Information for the quarter ended March 31, 2021, contains certain forward-looking statements that can be identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “project,” “intend,” “may” or similar expressions. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters, including our expectations regarding the impact of COVID-19 on our business, that are not historical facts. These forward-looking statements reflect our current views about future events, achievements, results, cost reductions, dividend payments and the impact of COVID-19 and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, our business might be materially and adversely affected by the following:

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

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

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

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

• current economic conditions, including current high rates of unemployment and its effects on consumer confidence and spending, 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;

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

• 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 our ability to remain in compliance with our financial covenants under our debt facilities;

• our ability to raise capital, including through sales of properties or interests in properties, subject to the terms of our Credit Agreements; 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, 2020 in the section entitled “Item 1A. Risk Factors” and any subsequent reports we file with the SEC. We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

29

Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

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

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

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

When applicable, we also present FFO, as adjusted, and FFO per diluted share and OP Unit, as adjusted, which are non-GAAP measures, for the three months ended March 31, 2021 and 2020, 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, insurance recoveries or losses, net, gain on derecognition of property, loss on hedge ineffectiveness and reorganization expenses which had an effect on our results of operations, but are not, in our opinion, indicative of our ongoing operating performance.

We believe that FFO is helpful to management and investors as a measure of operating performance because it excludes various items included in net 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 does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net loss (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. It is not indicative of funds available for our cash needs, including our ability to make cash distributions.

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

Same Store NOI

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

Funds Available for Distribution (FAD)

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

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

30

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.

31