Pennsylvania Real Estate Investment Trust
PREIT NEWS 200 South Broad Street
[GRAPHIC OMITTED] FOR RELEASE: Philadelphia, PA 19102
www.preit.com
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Phone: 215-875-0700
Fax: 215-546-7311
FOR FURTHER INFORMATION:
AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD/BSMG WORLDWIDE
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Edward A. Glickman Joe Calabrese Leslie Loyet Judith Sylk-Siegel
Executive Vice President and CFO (General Info) (Analyst Info) (Media Info)
(215) 875-0700 (212) 445-8434 (312) 266-7800 (212) 445-8431
FOR IMMEDIATE RELEASE
- ---------------------
August 9, 2001
Pennsylvania Real Estate Investment Trust Reports
2001 Second Quarter and Six Month Results
Philadelphia, PA, August 9, 2001-- Pennsylvania Real Estate Investment Trust
(NYSE: PEI) today announced results for the second quarter and six months ended
June 30, 2001 in line with the Company's May 2001 guidance.
2001 Second Quarter Highlights
o FFO for the 2001 second quarter totaled $10,454,000, or $0.67 per share, on
15.6 million weighted average shares of beneficial interest/Operating
Partnership units (collectively, shares).
o Combined net operating income, excluding lease termination fees for both
periods, increased 11.2% to $22,198,000 in the second quarter of 2001 from
$19,961,000 for the second quarter of 2000.
o Same store net operating income, excluding lease termination fees, for
the Company's shopping center portfolio increased 4.7% from the 2000
second quarter.
o Mall sales increased 8.6% to $391 per square foot and shopping center
occupancy increased 50 basis points to 92.7%.
Second Quarter Results
For the second quarter ended June 30, 2001 the Company's funds from operations
(FFO) totaled $10,454,000 compared with FFO of $14,880,000 for the comparable
three-month period in 2000. Second quarter 2001 FFO was $0.67 per share on
15,576,261 weighted average shares. For the 2000 second quarter FFO totaled
$1.00 per share on 14,920,132 weighted average shares. This differential is
substantially due to reduced lease termination fees.
As calculated by NAREIT, FFO is defined as net income, excluding extraordinary
items, gain (or loss) on the sale of property, plus real estate related
depreciation and amortization.
PREIT Announces Second Quarter 2001 Results
August 9, 2001
Page 2
Net operating income from wholly-owned properties and the Company's
proportionate share of partnerships and joint venture properties totaled
$23,043,000 for the 2001 second quarter compared with $25,803,000 for second
quarter of 2000. After eliminating lease termination revenues from both periods,
NOI increased by 11.2% to $22,198,000 in 2001 from $19,961,000 in 2000. This
increase is due to the completion of development projects and improved
performance in the Company's shopping center portfolio.
Net income for the second quarter ended June 30, 2001 was $3,906,000, or $0.29
per share, on 13,691,590 total weighted average shares outstanding compared to
$15,083,000 or $1.13 per share, on 13,384,774 total weighted average shares
outstanding for the comparable 2000 period. This decrease is due, in part, to
reduced lease termination revenue and reduced gains on sales of real estate. Net
income in the second quarter of 2001 included net gains on the sale of land at
Florence Commons Shopping Center in Florence, SC and land at Paxton Towne
Centre, PA totaling $0.3 million, or $0.02 per share. Net income in the second
quarter of 2000 included a gain on the sale of the CVS Building in Alexandria,
VA totaling $6.6 million, or $0.50 per share.
Six Month Results
FFO for the six months ended June 30, 2001 totaled $20,336,000 compared with FFO
of $24,404,000 for the prior comparable six-month period ended June 30, 2000.
FFO for the six-month period totaled $1.31 per share on 15,503,392 weighted
average shares outstanding, compared to $1.64 per share on 14,900,420 weighted
average shares for the six months ended June 30, 2000.
Net operating income from wholly-owned properties and the Company's
proportionate share of partnerships and joint venture properties totaled
$44,954,000 for the six months ended June 30, 2001, compared with $45,782,000 in
the second quarter ended June 30, 2000. After eliminating lease termination
revenues from both periods, NOI increased 10.3% to $43,979,000 in 2001 from
$39,860,000 in 2000.
Net income for the six months ended June 30, 2001 was $8,999,000, or $0.66 per
share, on 13,680,329 total weighted average shares outstanding compared to
$21,473,000, or $1.61 per share on 13,362,324 total weighted average shares
outstanding for the six months ended June 30, 2000. Year-to-date net income for
2001 includes $2.1 million, or $0.15 per share, from net gains on the sale of
land at Florence Commons Shopping Center, Florence, SC, and Paxton Towne Centre,
Harrisburg, PA and the sale of the Company's interest in Ingleside Shopping
Center, Thorndale, PA. Net income for the 2000 six-month period includes gains
on the sale of the CVS Building in Alexandria, VA and the Company's interest in
Park Plaza shopping center in Pinellas Park, FL totaling $8.9 million or $0.67
per share.
Same Store NOI Growth -- Retail and Multifamily Portfolios Same store net
operating income for the Company's retail portfolio, excluding lease termination
fees for both periods, increased 4.7% over the 2000 second quarter. Contributing
to the Company's retail portfolio net operating income growth was the successful
completion, in the second quarter, of 31 new, replacement and renewal leases
representing 164,850 square feet at an average rent of $18.62 per square foot.
During the quarter, the Company concluded 17 renewal and replacement leases at
an average rent of $21.83 per square foot, which was 38.8% higher than the
previous levels. A significant driver of the improved performance is Dartmouth
Mall in Dartmouth, MA where occupancy increased to 93.4% from 87.4% in the
comparable period, primarily the result of the mall's renovation completed in
PREIT Announces Second Quarter 2001 Results
August 9, 2001
Page 3
the fourth quarter of 2000. Of note, occupancy rates in the 2001 second quarter
averaged 92.7%, 50 basis points higher than 92.2% reported in the 2000 second
quarter. The Company's power centers and enclosed malls were 98.6% and 92.6%
occupied, respectively, as of June 30, 2001.
The Company also reported that sales at its mall properties increased 8.6% to
$391 per square foot for the trailing twelve months from $360 per square foot
for the comparable period in 2000. During 2000 sales at the Company's mall
properties were $371 per square foot.
Same store net operating income for the Company's portfolio of multifamily
properties increased 1.8% over the comparable quarter in 2000. During the 2001
second quarter the Company's multifamily revenues increased 4.1%. This growth
was limited by a 7.6% increase in operating expenses due primarily to a 48.3%
increase in insurance costs, a 32.3% increase in turnover expenses and a 16.8%
increase in repairs and maintenance. The increase in turnover expenses is due in
large part to improvements at the Company's Emerald Point community in Virginia
Beach, VA where increased rents led to higher than normal turnover. Generally,
the Company expects to be impacted by higher insurance costs throughout the
balance of this year and is stringently managing its exposure to utility
expenses by implementing additional submetering to take effect later in the
year.
Comments from Management
Ronald Rubin, Chief Executive Officer of PREIT said, "We are pleased with the
overall performance of our core portfolio during the 2001 second quarter
especially given what has been recognized as a difficult retail environment. We
continue to closely monitor the real estate market and believe the situation may
be stabilizing, as indicated by our 3.3% increase in same store traffic levels
during the 2001 second quarter and our 5.4% increase in average mall sales per
square foot over the end of 2000. We are especially pleased with our recent
lease commitments. Looking forward, we remain committed to maintaining a strong
capital structure and enhancing FFO on a long-term basis by focusing on driving
internal growth, cost-containment and pursuing our successful development,
redevelopment and leasing programs."
2001 Third Quarter and Fiscal Year Forecast
The Company noted that it is currently estimating FFO to be approximately $0.62
to $0.64 for the third quarter ending September 30, 2001 and $2.68 to $2.72 per
share for the calendar year ending December 31, 2001, reflecting the Company's
offering of 2.0 million shares in July, 2001, described below.
Strategic Update
PREIT is pursuing a broad range of internal and external growth strategies in
its primary markets and is focused on three strategic goals and initiatives
during 2001:
o Construction in Progress: To position the Company for future growth,
management intends, during 2001, to continuously have $50 to $100 million
of development projects on-line. As of June 30, 2001 the Company's
construction in progress amounted to $45.9 million.
o Built-in Development Backlog: Leveraging the Company's in-depth market
knowledge, strong tenant relationships and economies of scale, management
is focused on maintaining an active pipeline of new properties in desirable
locations to advance into the construction phase as existing development
projects are completed. The Company's current backlog consists of 6
PREIT Announces Second Quarter 2001 Results
August 9, 2001
Page 4
projects with approximately 1.6 million square feet of GLA and a potential
investment of approximately $115 million.
o Return on Investment: Focused on taking full advantage of the favorable
growth opportunities within its markets, the Company is committed to a
solid investment philosophy that emphasizes quality real estate and
transactions structured to protect return on investment. Accordingly,
management's goal is to achieve a minimum 11% return on investment on its
development portfolio.
Jonathan B. Weller, PREIT's President and Chief Operating Officer commented,
"Consistent with our operating strategy, the Company continues to focus on
prudently growing the business through strategic investments in quality real
estate where we can leverage our development and management expertise. We are
committed to maintaining our disciplined investment criteria where we
concentrate solely on transactions structured to produce stabilized rates of
return that exceed our long-term cost of capital and provide for strong FFO
growth. Our development and redevelopment pipeline currently consists of 7 power
centers, one entertainment center and one enclosed mall."
The Company ended the 2001 second quarter with investment in real estate of $812
million, a net increase of $8 million over 2000's year-end level of $804
million. As a result, on a cost basis, the Company's portfolio is now 34%
multifamily, 59% retail, 6% retail development and less than 1% industrial.
Development Pipeline
o Creekview Shopping Center (Warrington, PA) - Construction of the 424,732
square foot shopping center is 62% complete as of June 30, 2001 and the
center is 93% leased.
o Metroplex Shopping Center (Plymouth Meeting, PA) -- Construction of the
778,190 square foot power center is 100% complete as of June 30, 2001.
During the second quarter 52,000 square feet of new tenants opened
including Ulta III Cosmetics, Party City, David's Bridal and Guitar Center.
o Paxton Towne Centre (Harrisburg, PA) - Construction of the 711,471 square
foot power center is 88% complete as of June 30, 2001 and the center is 90%
leased. During the second quarter two stores opened, David's Bridal and
Atlanta Breads. Additionally, a lease was executed with Old Navy for a
22,000 square foot store, expected to open in early 2002.
Leasing Update
o Prince George's Plaza (Hyattsville, MD) Six new and renewal leases were
executed covering 24,102 square feet of GLA, including a new lease with
Shoe City and an expansion with Gap/Gap Kids.
o Dartmouth Mall (Dartmouth, MA) Five new and renewal leases were executed
covering 17,356 square feet of GLA, including new leases with Bath and Body
Works, Nancy's Coffee Cafe and Regis Beauty.
o Willow Grove Park (Willow Grove, PA) Six new and renewal leases were
executed covering 20,647 square feet of GLA, including new leases with
Casual Corner, Rockport Shoes and Spencer Gifts and an expansion with Gap.
PREIT Announces Second Quarter 2001 Results
August 9, 2001
Page 5
o Mandarin Corners (Jacksonville, FL) - Marshall's leased a 30,000 square
foot store, which is expected to open in the fourth quarter of 2001.
o Springfield Park (Springfield, PA) LA Fitness leased 27,000 square feet and
is expected to open in early 2002.
New Management Agreements
As previously announced, the Company recently entered into agreements to take
over the management and leasing operations at two retail properties and one
apartment complex with projected annual management and leasing fees of
approximately $0.2 million for the remainder of 2001, and approximately $0.7
million in 2002. Starting July 15, 2001, PREIT is managing the 837,000
square-foot Harrisburg East Mall, located in Harrisburg, PA and owned by The
Prudential Insurance Company of America. Starting on January 1, 2002, PREIT will
also manage the 250,000 square foot Home Depot Plaza, located in Clifton
Heights, PA. The Home Depot Plaza is owned by a partnership in which two
trustees of PREIT have ownership interests. In addition, beginning on January 1,
2002, PREIT will manage and lease a 233- unit apartment complex located in West
Chester, PA, which is owned by a partnership between PREIT and another entity.
Additional Activity
o Countrywood Apartments (Tampa, FL) - The Company also announced that it has
arranged a $15 million mortgage refinancing with a 10-year term for
Countrywood Apartments, a 536-unit community in which the Company owns a
50% interest. The newly placed financing carries an interest rate of 6.81%
and was provided by the Federal Home Loan Bank. The new financing replaced
an 8.0% mortgage and generated proceeds of approximately $4.3 million to
the Company.
o Swansea Mall (Swansea Mall, MA) - Since 1997, the Company has managed this
686,000 square foot mall. After the close of the quarter the property was
sold to a partnership of private investors. The Company entered into a new
management and leasing agreement with the new owners and invested $0.75
million to purchase rights to manage and lease the property and to be
eligible to receive incentive compensation. The Company expects to earn
management and leasing fees of approximately $0.4 million per year and
annual incentive compensation of $0.1 million.
Raised Gross Proceeds of $44.5 Million
In July 2001, the Company completed a public offering of 2.0 million shares of
common stock at $23.00 per share, generating total gross proceeds of $44.5
million. The sole underwriter of the offering was Lehman Brothers. Edward
Glickman, Chief Financial Officer of PREIT, commented, "We are pleased by the
success of the offering in light of current capital market conditions. The
proceeds from the offering along with our $250 million combined revolving credit
and construction facility provides us with ample flexibility and borrowing
capacity to complete our development and redevelopment pipeline as well as
pursue other strategic opportunities that may arise."
As of June 30, 2001, the Company had approximately $109 million outstanding
under the $175 million revolving portion of its bank credit facility.
PREIT Announces Second Quarter 2001 Results
August 9, 2001
Page 6
Conference Call Information
The Company will conduct a conference call that will be broadcast simultaneously
over the Internet at 11:00 ET on Thursday August 9, 2001 to review the Company's
quarterly results, market trends and future outlook. The webcast will be
available to the public, on a listen-only basis, via the Internet at
www.streetevents.com or the Company's website at www.preit.com. Please allow
extra time prior to the webcast to visit the site and download the streaming
media software required to listen to the Internet broadcast. The online archive
of the webcast will be available for 30 days.
About Pennsylvania Real Estate Investment Trust
Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first
equity REITs in the U.S., has a primary investment focus on shopping centers
(approximately 10.7 million square feet) and apartment communities
(approximately 7,242 units) located primarily in the eastern United States. The
Company's portfolio currently consists of 45 properties in 10 states. In
addition, there are 6 retail properties under development, which PREIT expects
will add approximately 1.6 million square feet to its portfolio. PREIT is
headquartered in Philadelphia, Pennsylvania.
The matters discussed in this report, as well as news releases issued from time
to time by PREIT include use of forward-looking terminology such as "may,"
"will," "should," "expect," "anticipate," "estimate," "plan," or "continue" or
the negative thereof or other variations thereon, or comparable terminology
which constitute "forward-looking statements." Such forward-looking statements
(including without limitation, information concerning PREIT's continuing
dividend levels, planned acquisition, development and divestiture activities,
short- and long-term liquidity position, ability to raise capital through public
and private offerings of debt and/or equity securities, availability of adequate
funds at reasonable cost, revenues and operating expenses for some or all of the
properties, leasing activities, occupancy rates, changes in local market
conditions or other competitive factors) involve known and unknown risks,
uncertainties and other factors that may cause the actual results, performance
or achievements of PREIT's results to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. PREIT disclaims any obligation to update any such
factors or to publicly announce the result of any revisions to any of the
forward-looking statements contained herein to reflect future events or
developments.
[Financial Tables Follow]
# # #
** A supplemental quarterly financial package **
is available on the Company's web site at www.preit.com.
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PREIT Announces Second Quarter 2001 Results
August 9, 2001
Page 7
Pennsylvania Real Estate Investment Trust
Selected Financial Data
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FUNDS FROM OPERATIONS Three Months Ended
- ----------------------------------------------------------------------- -----------------------------------------
June 30, 2001 June 30, 2000
----------------- ------------------
Income before minority interest in operating partnership $ 4,449,000 $ 16,815,000
Less: Gains on sales of interests in real estate (301,000) (6,648,000)
Add: Depreciation and amortization:
Wholly owned & consolidated partnership, net 4,386,000 (a) 3,594,000 (a)
Unconsolidated partnerships & joint ventures 1,745,000 1,137,000
Excess purchase price over net asset acquired 106,000 92,000
Prepayment fee 255,000 (b) -
Less: Depreciation of non-real estate assets (65,000) (65,000)
Amortization of deferred financing costs (121,000) (c) (45,000) (c)
------------ ------------
FUNDS FROM OPERATIONS $ 10,454,000 (d) $ 14,880,000 (d)
============ ============
FUNDS FROM OPERATIONS PER SHARE AND OP UNITS $0.67 $1.00
============ ============
Weighted average number shares outstanding 13,691,590 13,384,774
Weighted average effect of full conversion of OP units 1,884,671 1,535,358
------------ ------------
Total weighted average shares of outstanding including OP units 15,576,261 14,920,132
------------ ------------
[RESTUBBED TABLE]
- ----------------------------------------------------------------------- -----------------------------------------
FUNDS FROM OPERATIONS Six Months Ended
- ----------------------------------------------------------------------- -----------------------------------------
June 30, 2001 June 30, 2000
------------------ -----------------
Income before minority interest in operating partnership $ 10,198,000 $ 23,944,000
Less: Gains on sales of interests in real estate (2,107,000) (8,911,000)
Add: Depreciation and amortization:
Wholly owned & consolidated partnership, net 8,729,000 (a) 7,182,000 (a)
Unconsolidated partnerships & joint ventures 3,348,000 2,258,000
Excess purchase price over net asset acquired 211,000 146,000
Prepayment fee 255,000 (b) -
Less: Depreciation of non-real estate assets (130,000) (130,000)
Amortization of deferred financing costs (168,000) (c) (85,000) (c)
------------ ------------
FUNDS FROM OPERATIONS $ 20,336,000 (d) $ 24,404,000 (d)
============ ============
FUNDS FROM OPERATIONS PER SHARE AND OP UNITS $ 1.31 $ 1.64
============ ============
Weighted average number shares outstanding 13,680,329 13,362,324
Weighted average effect of full conversion of OP units 1,823,063 1,538,096
------------ ------------
Total weighted average shares of outstanding including OP units 15,503,392 14,900,420
------------ ------------
a) Amortization of deferred financing costs on the Company's Credit Facility
was reclassified to interest expense.
b) Prepayment fee for the refinancing of the mortgage on Countrywood
Apartments in Tampa, FL.
c) Amortization of deferred financing costs for property mortgages. Does not
include amortization of amounts relating to the Company's Credit Facility.
d) Includes the non-cash effect of straight-line rents of $273,000 and
$183,000 for the 2nd quarter 2001 and 2000 and $599,000 and $478,000 for
year to date 2001 and 2000, respectively.
- ----------------------------------------------------------------------- -----------------------------------------
OPERATING RESULTS Three Months Ended
- ----------------------------------------------------------------------- -----------------------------------------
June 30, 2001 June 30, 2000 (5)
----------------- ------------------
REAL ESTATE REVENUES
Base Rent $ 20,919,000 $ 19,494,000
Percent Rent 238,000 147,000
Expense Reimbursement 2,278,000 2,035,000
Lease Termination 845,000 5,557,000
Other Real Estate Revenue 854,000 888,000
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Total Real Estate Revenue 25,134,000 28,121,000
------------ ------------
Management company revenue 2,313,000 -
Interest and other income 91,000 325,000
------------ ------------
27,538,000 28,446,000
------------ ------------
EXPENSES
Property Payroll and benefits 1,702,000 1,568,000
Real Estate and Other Taxes 1,884,000 1,823,000
Utilities 991,000 979,000
Other Operating Expenses 3,493,000 3,055,000
------------ ------------
Total Property Operating Expenses 8,070,000 7,425,000
------------ ------------
Depreciation and amortization 4,386,000 3,594,000
Corporate payroll and benefits 3,186,000 706,000
Other general and administrative expenses 2,460,000 699,000
------------ ------------
Total General & Administrative Expenses 5,646,000 1,405,000
------------ ------------
Interest expense 6,658,000 5,765,000
------------ ------------
24,760,000 18,189,000
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Income before equity in unconsolidated entities,
gains on sales of interests in real estate and
minority interest in operating partnership 2,778,000 10,257,000
Equity in loss of PREIT-RUBIN, Inc. - (1,898,000)
Equity in income of partnerships and joint ventures 1,370,000 1,808,000
Gains on sales of interests in real estate 301,000 (1) 6,648,000 (2)
------------ ------------
Income before minority interest in operating partnership 4,449,000 16,815,000
Minority interest in operating partnership (543,000) (1,732,000)
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NET INCOME $ 3,906,000 $ 15,083,000
============ ============
PER SHARE DATA
Net income before gains on sales $ 0.27 $ 0.63
Gains on sales of interests in real estate $ 0.02 (1) $ 0.50 (2)
------------ ------------
BASIC INCOME PER SHARE $ 0.29 $ 1.13
============ ============
DILUTED INCOME PER SHARE $ 0.29 $ 1.13
============ ============
Weighted average number shares outstanding 13,691,590 13,384,774
------------ ------------
[RESTUBBED TABLE]
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OPERATING RESULTS Six Months Ended
- ----------------------------------------------------------------------- -----------------------------------------
June 30, 2001 June 30, 2000 (5)
------------------ -----------------
REAL ESTATE REVENUES
Base Rent $ 41,482,000 $ 39,380,000
Percent Rent 571,000 424,000
Expense Reimbursement 5,074,000 4,240,000
Lease Termination 975,000 5,637,000
Other Real Estate Revenue 1,715,000 1,661,000
------------ ------------
Total Real Estate Revenue 49,817,000 51,342,000
------------ ------------
Management company revenue 4,465,000 -
Interest and other income 253,000 556,000
------------ ------------
54,535,000 51,898,000
------------ ------------
EXPENSES
Property Payroll and benefits 3,481,000 3,333,000
Real Estate and Other Taxes 3,799,000 3,575,000
Utilities 2,234,000 2,138,000
Other Operating Expenses 6,925,000 6,558,000
------------ ------------
Total Property Operating Expenses 16,439,000 15,604,000
------------ ------------
Depreciation and amortization 8,729,000 7,182,000
Corporate payroll and benefits 6,403,000 1,166,000
Other general and administrative expenses 4,442,000 1,275,000
------------ ------------
Total General & Administrative Expenses 10,845,000 2,441,000
------------ ------------
Interest expense 13,246,000 11,731,000
------------ ------------
49,259,000 36,958,000
------------ ------------
Income before equity in unconsolidated entities,
gains on sales of interests in real estate and
minority interest in operating partnership 5,276,000 14,940,000
Equity in loss of PREIT-RUBIN, Inc. - (3,387,000)
Equity in income of partnerships and joint ventures 2,815,000 3,480,000
Gains on sales of interests in real estate 2,107,000 (3) 8,911,000 (4)
------------ ------------
Income before minority interest in operating partnership 10,198,000 23,944,000
Minority interest in operating partnership (1,199,000) (2,471,000)
------------ ------------
NET INCOME $ 8,999,000 $ 21,473,000
============ ============
PER SHARE DATA
Net income before gains on sales $ 0.51 $ 0.94
Gains on sales of interests in real estate $ 0.15 (3) $ 0.67 (4)
------------ ------------
BASIC INCOME PER SHARE $ 0.66 $ 1.61
============ ============
DILUTED INCOME PER SHARE $ 0.66 $ 1.61
============ ============
Weighted average number shares outstanding 13,680,329 13,362,324
------------ ------------
1) 2nd qtr 2001 includes net gains on sales of land at Florence Commons
Shopping Center in Florence, SC and land at Paxton Towne Centre,
Harrisburg, PA.
2) 2nd qtr 2000 includes gain on sale of CVS Building, Alexandria, VA.
3) Year to date 2001 includes net gains on sales of land at Florence Commons
Shopping Center in Florence, SC, land at Paxton Towne Centre, Harrisburg,
PA and sale of interest in Ingleside Shopping Center, Thorndale, PA.
4) Year to date 2000 includes gain on sale of CVS Building, Alexandria, VA and
gain on sale of interest in Park Plaza shopping center in Pinellas Park,
Florida.
5) Certain prior period amounts have been reclassified to conform with the
current period presentation.
PREIT Announces Second Quarter 2001 Results
August 9, 2001
Page 8
Pennsylvania Real Estate Investment Trust
Selected Financial Data
- -------------------------------------- -------------------------------------- --------------------------------------
EQUITY IN INCOME OF PARTNERSHIPS Three Months Ended Six Months Ended
-------------------------------------- --------------------------------------
AND JOINT VENTURES June 30, 2001 June 30, 2000 June 30, 2001 June 30, 2000
- -------------------------------------- ----------------- ----------------- ------------------- ---------------
Gross revenues from real estate $ 23,082,000 $ 19,343,000 $ 45,145,000 $ 35,767,000
============ ============ ============= ============
Expenses:
Property operating expenses 8,050,000 6,255,000 16,035,000 11,723,000
Mortgage and bank loan interest 7,404,000 6,503,000 14,689,000 11,617,000
Prepayment fee 510,000 (a) - 510,000 (a) -
Depreciation and amortization 4,480,000 3,217,000 8,627,000 5,713,000
------------ ------------ ------------ ------------
20,444,000 15,975,000 39,861,000 29,053,000
------------ ------------ ------------ ------------
2,638,000 3,368,000 5,284,000 6,714,000
Partner's Share (1,268,000) (1,560,000) (2,469,000) (3,234,000)
------------ ------------ ------------ ------------
EQUITY IN INCOME OF PARTNERSHIPS
AND JOINT VENTURES $ 1,370,000 $ 1,808,000 $ 2,815,000 $ 3,480,000
============ ============ ============ ============
a) Prepayment fee at 100% for the refinancing of the mortgage on Countrywood
Apartments in Tampa, FL.
Supplemental Information for Wholly Owned Properties
and the Company's Proportionate Share of Partnerships and Joint Ventures
- -------------------------------------------------- ----------------------------------- ----------------------------------
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION Three Months Ended Six Months Ended
----------------------------------- ----------------------------------
AND AMORTIZATIONS ("EBITDA") June 30, 2001 June 30, 2000 June 30, 2001 June 30, 2000
- -------------------------------------------------- -------------- ----------------- --------------- ---------------
Gross Revenues $ 25,134,000 $ 28,121,000 $ 49,817,000 $ 51,342,000
Operating expenses (8,070,000) (7,425,000) (16,439,000) (15,604,000)
------------ ------------ ------------ ------------
Net operating income: Wholly-owned properties 17,064,000 20,696,000 33,378,000 35,738,000
Company's proportionate share of partnerships and
joint ventures net operating income 5,979,000 5,107,000 11,576,000 10,044,000
------------ ------------ ------------ ------------
Combined net operating income 23,043,000 (2) 25,803,000 (2) 44,954,000 (2) 45,782,000 (2)
Interest income 91,000 325,000 253,000 556,000
Company's proportionate share of PREIT-RUBIN, Inc.
net operating income (loss) - (1,437,000) - (2,567,000)
Management company revenue 2,313,000 - 4,465,000 -
Total General & Administrative Expenses (5,646,000)(1) (1,405,000) (10,845,000)(1) (2,441,000)
------------ ------------ ------------ ------------
EBITDA $ 19,801,000 $ 23,286,000 $ 38,827,000 $ 41,330,000
============ ============ ============ ============
1) Total General & Administrative Expenses for 2001 includes PREIT-RUBIN, Inc.
expenses.
2) Net operating income includes lease termination income of $845,000 and
$5,557,000, for the quarters ending June 30, 2001 and 2000 respectively,
and $975,000 and $5,637,000 for the six-month periods ending June 30, 2001
and 2000 respectively. NOI in the quarter and six-month periods ending June
30, 2000 also includes recovery of receivables previously reserved of
$285,000, received in connection with a lease termination. Net operating
income, net of these amounts, is $22,198,000 and $19,961,000 for the
quarters ended June 30, 2001 and 2000, and $43,979,000 and $39,860,000 for
the six-month periods ended June 30, 2001 and 2000, respectively.
MORTGAGE NOTES, BANK AND CONSTRUCTION LOANS PAYABLE
- ---------------------------------------------------
Wholly-Owned Properties
- ----------------------- June 30, 2001 December 31, 2000
---------------- -----------------
Mortgage notes payable $ 260,209,000 $247,449,000
Bank Loans payable 103,000,000 110,300,000
Construction Loan Payable 24,717,000 24,647,000
------------- ------------
387,926,000 382,396,000
Company's Proportionate Share of
- --------------------------------
Partnerships and Joint Ventures
- -------------------------------
Mortgage notes payable 114,199,000 111,457,000
Bank loans payable 31,200,000 30,929,000
------------- ------------
Total mortgage notes and bank loans payable $ 533,325,000 $524,782,000
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