EXHIBIT 99.1
- -------------------------------------------------------------------------------
PREIT
[GRAPHIC OMITTED]
Pennsylvania Real Estate Investment Trust
QUARTERLY SUPPLEMENTAL DISCLOSURE
(June 30, 2003)
www.preit.com
PEI
LISTED
NYSE
[GRAPHIC OMITTED]
- -------------------------------------------------------------------------------
PREIT PEI
Pennsylvania REIT LISTED
NYSE
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003)
[GRAPHIC OMITTED]
Table of Contents
-----------------
Company Information 1
Timeline/Recent Developments 2
Stock Information 3
Market Capitalization and Capital Resources 4
Balance Sheet--Wholly Owned and JV Detail 5
Balance Sheet--Line of Business 6
Income Statement--Wholly Owned and JV Detail 7
Income Statement--Line of Business 8
Income Statement--Retail (Property Status) 9
Income Statement--Retail (Property Subtype) 10
Income Statement--Multifamily (Property Status) 11
FFO and FAD 12
Key Ratios 13
Property Debt Schedule--Wholly Owned 14
Property Debt Schedule--JV 15
Debt Analysis 16
Debt Ratios 17
Portfolio Summary--Retail Wholly Owned 18
Portfolio Summary--Retail Joint Venture 19
Property Acquisitions/Dispositions 20
Property Development/Redevelopment Summary 21
Top Twenty Tenants Schedule 22
Lease Expiration Schedule - Anchor Tenants 23
Lease Expiration Schedule - Non-Anchor Tenants 24
New Lease/Renewal Summary and Analysis 25
Capital Expenditures 26
Enclosed Mall-Summary and Occupancy 27
Power Center- Summary and Occupancy 28
Strip Center- Summary and Occupancy 29
Retail Overall- Summary and Occupancy 30
Summary of Portfolio Services 31
Flash Report 32
RECONCILIATION TO GAAP:
Balance Sheet-Reconciliation to GAAP 33
Income Statement-Reconciliation to GAAP 34
Flash Report-Reconciliation to GAAP 35
Definition page 36
THE INFORMATION SET FORTH HEREIN IS UNAUDITED, PRELIMINARY AND SUBJECT TO
ADJUSTMENT WITHOUT FURTHER NOTICE. CERTAIN INFORMATION SET FORTH HEREIN
CONSTITUTES FORWARD-LOOKING STATEMENTS, AND THERE ARE FACTORS THAT COULD CAUSE
PREIT'S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO DIFFER MATERIALLY FROM
THOSE THAT MAY BE CONTAINED IN OR IMPLIED BY ANY SUCH FORWARD-LOOKING
STATEMENTS, INCLUDING, WITHOUT LIMITATION, THE ABILITY OF PREIT TO GROW
INTERNALLY OR BY ACQUISITION AND TO INTEGRATE ACQUIRED BUSINESSES, THE
AVAILABILITY OF ADEQUATE FUNDS AT REASONABLE COST NECESSARY FOR GROWTH AND
DEVELOPMENT, CHANGING INDUSTRY AND COMPETITIVE CONDITIONS, AND OTHER RISKS
OUTSIDE THE CONTROL OF PREIT REFERRED TO IN PREIT'S REGISTRATION STATEMENTS AND
PERIODIC REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
PREIT PEI
Pennsylvania REIT LISTED
NYSE
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003)
[GRAPHIC OMITTED]
COMPANY INFORMATION
PENNSYLVANIA REIT
200 South Broad Street, Philadelphia, PA 19102
http://www.preit.com
Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first
equity REITs in the U.S., has a primary investment focus on retail shopping
malls and power centers (approximately 17.5 million square feet) located in the
eastern United States. PREIT's portfolio as of August 11, 2003 consists of 34
properties in 7 states. PREIT's portfolio includes two multifamily properties
that are held for sale, 14 shopping malls, 14 strip and power centers and four
industrial properties. In addition, there are two retail properties under
development, which PREIT expects will add approximately 0.8 million square feet
to its portfolio. May 14, 2003 Pennsylvania Real Estate Investment Trust and
Crown American Realty Trust announced a definitive merger agreement by which
Crown will merge into PREIT. PREIT is headquartered in Philadelphia,
Pennsylvania.
Research Coverage
- ------------------------------------------------------------------------
Company Analyst Phone Number
- ------- ------- ------------
- ------------------------------------------------------------------------
Green Street Advisors Gregory R. Andrews (949) 640-8780
Barbara M. Hoogland (949) 640-8780
- ------------------------------------------------------------------------
JP Morgan Michael W. Mueller (212) 622-6689
Anthony Paolone (212) 622-6682
Joshua Bederman (212) 622-6530
- ------------------------------------------------------------------------
Legg Mason Wood Walker David M. Fick (410) 539-0000
Elizabeth L. Watson (410) 539-0000
- ------------------------------------------------------------------------
Lehman Brothers David Shulman (212) 526-3413
Stuart Axelrod (212) 526-3410
Alexander D. Goldfarb (212) 526-5232
- ------------------------------------------------------------------------
US Bancorp Piper Jaffray Andrew L. Rosivach (212) 284-9304
Brian M. Prenoveau (212) 284-9308
- ------------------------------------------------------------------------
Quarterly Earnings Schedule
PREIT's quarterly results will be announced in
accordance with the following schedule:
- --------------------------------------------------------
Quarter 2003 2002
------- ---- ----
- --------------------------------------------------------
First Quarter 5/14/2003 5/2/2002
- --------------------------------------------------------
Second Quarter 8/11/2003 8/8/2002
- --------------------------------------------------------
Third Quarter 11/6/2003 (1) 10/31/2002
- --------------------------------------------------------
Fourth Quarter 3/4/2004 (1) 3/31/2003
- --------------------------------------------------------
(1) Tentative dates.
- --------------------------------------------------------
Quarterly conference calls are arranged by KCSA Worldwide. To participate,
please contact Todd Fromer at (212) 896-1215.
For additional information, please contact:
Edward Glickman or Nurit Yaron
200 South Broad Street
Philadelphia, PA 19102
(215) 875-0700 Phone (866) 875-0700 Toll Free
(215) 546-7311 Fax yaronn@preit.com Email
PAGE 1
PREIT PEI
Pennsylvania REIT LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) NYSE
Time Line/Recent Developments [GRAPHIC OMITTED]
-----------------------------
July 29, 2003 - Pennsylvania Real Estate Investment Trust announced that it has
completed the sale of its remaining two wholly-owned multifamily properties,
Emerald Point in Virginia Beach, VA and Regency Lakeside in Omaha, NE, to
affiliates of Morgan Properties of King Of Prussia, PA. The purchase price was
approximately $81.4 million. In addition, the Board of Trustees has approved a
quarterly cash dividend of $0.51 per share. The dividend will be paid on
September 15, 2003 to shareholders and unitholders of record on August 29, 2003.
PREIT also announced that it intends to release its financial results for the
second quarter ended June 30, 2003 before the open of market trading on Monday,
August 11, 2003.
June 19, 2003 - Pennsylvania Real Estate Investment Trust announced the
appointment of John J. Roberts to its Board of Trustees, increasing the number
of Trustees from eight to nine. Mr. Roberts, age 58, will stand for re-election
to the Board of Trustees at the next meeting of the shareholders. Mr. Roberts
was also elected by the Board of Trustees to serve as a member of the Audit and
Nominating and Governance Committees.
June 5, 2003 - Pennsylvania Real Estate Investment Trust announced that it had
completed the acquisition of the remaining two shopping malls shopping malls
relating to the Company's agreement, announced on March 6, 2003, to purchase a
total of six shopping malls from The Rouse Company. In completing this
transaction, PREIT acquired Plymouth Meeting Mall, Plymouth Meeting, PA and
Echelon Mall, Voorhees, NJ, totaling approximately 1.96 million square feet of
retail space, for an aggregate purchase price of approximately $80.4 million.
June 2, 2003 - Pennsylvania Real Estate Investment Trust completed the sale of
thirteen of its wholly-owned multifamily properties to affiliates of Morgan
Properties of King of Prussia, PA on May 30, 2003. In addition, with respect to
its four joint venture multifamily properties, the Company announced that it has
closed under purchase and sale agreements with joint venture partners to sell
50% interests in Cambridge Hall Apartments in West Chester, PA and Countrywood
Apartments in Tampa, FL.
May 14, 2003 Pennsylvania Real Estate Investment Trust and Crown American Realty
Trust announced a definitive merger agreement by which Crown will merge into
PREIT.
April 29, 2003 Pennsylvania Real Estate Investment Trust announced the
completion of the acquisition of four shopping malls relating to the Company's
agreement to purchase six shopping malls from The Rouse Company.
April 10, 2003 Pennsylvania Real Estate Investment Trust announced that an
affiliate of Morgan Properties of King of Prussia had secured and accepted debt
and equity financing commitments in the full amount necessary to close the
purchase of PREIT's multifamily portfolio.
PAGE 2
PREIT PEI
Pennsylvania REIT LISTED
NYSE
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003)
[GRAPHIC OMITTED]
Stock Information
- -----------------
PREIT's common stock trades on the New York Stock Exchange (symbol: PEI).
Q2:6/30/03 Q1:3/31/03 CY 12/31/02
- -----------------------------------------------------------------------------------------------------------------------
High Price 30.34 28.80 27.20
Low Price 27.94 24.70 20.55
Close 29.95 28.65 26.00
Average Daily Trading Volume 85,567 37,385 41,495
Shares Outstanding at end of period 16,837,304 16,753,614 16,697,119
O.P. Units 2,057,618 1,763,320 1,763,318
-------------- ------------- -------------
Fully Diluted Shares Outstanding 18,894,922 18,516,934 18,460,437
Weighted Avg. number of shares outstanding 16,615,576 16,544,737 16,450,912
Weighted Avg. effect of full conversion of O.P. units 1,998,708 1,763,320 1,804,779
-------------- ------------- -------------
Wtd Avg. Shares Outstanding and O.P. Units 18,614,284 18,308,057 18,255,691
Market Value of Shares (based on closing price) $ 565,902,914 $ 530,510,159 $ 479,971,362
- -----------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
Q2:6/30/02 CY 12/31/01 CY 12/31/00
- -----------------------------------------------------------------------------------------------------------------------
High Price 27.20 25.05 19 3/4
Low Price 24.90 18.25 14 5/8
Close 27.11 23.20 19 1/8
Average Daily Trading Volume 38,162 39,463 24,897
Shares Outstanding at end of period 16,462,868 15,876,084 13,628,448
O.P. Units 1,609,609 1,753,580 1,415,791
-------------- ------------- -------------
Fully Diluted Shares Outstanding 18,072,477 17,629,664 15,044,239
Weighted Avg. number of shares outstanding 16,215,645 14,656,711 13,403,233
Weighted Avg. effect of full conversion of O.P. units 1,808,426 1,869,383 1,573,028
-------------- ------------- -------------
Wtd Avg. Shares Outstanding and O.P. Units 18,024,071 16,526,094 14,976,261
Market Value of Shares (based on closing price) $ 489,944,851 $ 409,008,205 $ 287,721,071
- -----------------------------------------------------------------------------------------------------------------------
Shareholder Information
- -----------------------
Ten Largest Institutional Shareholders:
Shares Held (1) 6/30/2003
---------
Barclays Bank PLC 542,716
The Vanguard Group 507,537
J.P. Morgan Investment Mgmt. Inc. 379,700
Wachovia Securities 314,000
State Street Global Advisors 281,713
Manufacturers Advisers Corporation 259,952
Neuberger Berman, LLC 213,900
Stratton Management Company 207,250
ABP Investments U.S., Inc 167,450
Brown Brothers Harriman & Company 131,005
TOTAL of Ten Largest Institutional: 3,005,223
TOTAL of all Institutional holders: 5,018,709
Ten Largest as % of Total Institutional: 59.9%
(1) Based on 13F filings as of 6/30/03 & 3/31/03.
[CHART OMITTED]
- -------------------------------------------------------------------------------
Share Ownership by Insiders: Shares Held (including Interim Net
O.P. Units, Beneficial Ownership and Exercisable Purchases of
Options) As of 4/1/03(1) % of Total(2) Shares(3)
--------------- ------------- -------------
Ronald Rubin 822,370 4.5% (13,138)
George F. Rubin 403,707 2.2% (7,981)
Leonard I. Korman 312,785 1.7% 2,500
Jonathan B. Weller 223,161 1.2% (2,540)
Edward A. Glickman 200,436 1.1% 20,000
Joseph F. Coradino 135,996 0.7% (2,115)
Jeffrey A. Linn 85,443 0.5% 2,342
Jeffrey P. Orleans 82,748 0.4% 1,500
Douglas S. Grayson 61,242 0.3% 5,760
David J. Bryant 27,603 0.1% 5,992
Raymond Trost 21,736 0.1% 6,906
Lee H. Javitch 13,125 0.1% 1,500
Bruce Goldman 10,574 0.1% 5,554
Rosemarie B. Greco 7,125 0.0% 2,500
Ira Lubert 3,250 0.0% 2,250
--------------- ------------- -------------
TOTAL 2,411,301 13.1% 31,030
- ----------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
As of 12/31/02(1) % of Total(5)
------------------ -------------
Ronald Rubin 835,508 4.5%
George F. Rubin 411,688 2.2%
Leonard I. Korman 310,285 1.7%
Jonathan B. Weller 225,701 1.2%
Edward A. Glickman 180,436 1.0%
Joseph F. Coradino 138,111 0.7%
Jeffrey A. Linn 83,101 0.5%
Jeffrey P. Orleans 81,248 0.4%
Douglas S. Grayson 55,482 0.3%
David J. Bryant 21,611 0.1%
Raymond Trost 14,830 0.1%
Lee H. Javitch 11,625 0.1%
Bruce Goldman 5,020 0.0%
Rosemarie B. Greco 4,625 0.0%
Ira Lubert 1,000 0.0%
--------------- -------------
TOTAL 2,380,271 12.9%
- ----------------------------------------------------------------------------------------------------------------------
Distribution Information
- ------------------------
Q2:6/30/03 Q1:3/31/03 CY 12/31/02
- ----------------------------------------------------------------------------------------------------------------------
Dividend per share (1) $ 0.510 $ 0.510 $ 2.040
Annualized Dividend Yield (2) 6.8% 7.1% 7.8%
Capital Gain N/A N/A $ 0.082
Section 1250 Gain N/A N/A $ -
Return of Capital N/A N/A $ 0.134
Qualified 5 Year Gain (incl. in cap. Gain) N/A N/A $ -
Ordinary Income N/A N/A $ 1.824
- ----------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
Q2:6/30/02 CY 12/31/01 CY12/30/00(1)
- ----------------------------------------------------------------------------------------------------------------------
Dividend per share (1) $ 0.510 $ 2.040 $ 1.920
Annualized Dividend Yield (2) 7.5% 8.8% 10.0%
Capital Gain $ - $ 0.110 $ 0.590
Section 1250 Gain $ - $ 0.129 $ 0.190
Return of Capital $ - $ - $ -
Qualified 5 Year Gain (incl. in cap. Gain) $ - $ - $ -
Ordinary Income $ 0.510 $ 1.801 $ 1.140
- ----------------------------------------------------------------------------------------------------------------------
(1) Dividend per share increased in 4Q 00 from $0.47 to $0.51
($0.47 x 3 + $0.51 x 1 = $1.92).
(2) Based on closing stock price for the period.
- -------------------------------------------------------------------------------
Breakdown of Share & Unit % of 6/30/03
Ownership: Shares Held 6/30/2003 6/30/2002 total
--------- --------- ------------
Institutional (1) 5,018,709 3,735,950 26.6%
Retail (2) 12,130,162 12,597,966 64.2%
Insiders (3) 1,746,051 1,738,561 9.2%
---------- ---------- ------
TOTAL 18,894,922 18,072,477 100.0%
[CHART OMITTED]
(1) Based on 13F filings as of 6/30/03 & 3/31/03.
(2) Retail ownership equals total shares outstanding minus institutional
and insider ownership.
(3) Insider holdings as of 4/1/03. (Shares and O.P. Units only. Excludes
665,250 exercisable options).
- ------------------------------------------------------------------------------
(1) Source of Insider Ownership: Proxy dated April 30, 2003. Refer to footnotes
in proxy for details on beneficial ownership.
(2) Based on fully diluted shares outstanding as of June 30, 2003.
(3) Includes purchases of shares, issuance of restricted stocks awards,
issuances of O.P. units, and exercisable options.
(4) Source of Insider Ownership: Proxy dated April 5, 2002 and Company records.
Refer to footnotes in proxy for details on beneficial ownership.
(5) Based on fully diluted shares outstanding as of December 31, 2002.
- -------------------------------------------------------------------------------
PAGE 3
PREIT PEI
Pennsylvania REIT LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) NYSE
MARKET CAPITALIZATION [GRAPHIC OMITTED]
June 30, 2003 March 31, 2003 December 31, 2002
------------- -------------- -----------------
EQUITY CAPITALIZATION
Shares Outstanding 16,837,304 16,753,614 16,697,119
O.P. Units Outstanding 2,057,618 1,763,320 1,763,318
--------------------- -------------------- --------------------
TOTAL Shares and O.P. Units 18,894,922 18,516,934 18,460,437
Market Price (at end of period) 29.95 28.65 26.00
Equity Market Capitalization $ 565,902,914 $ 530,510,159 $ 479,971,362
DEBT CAPITALIZATION
Unsecured Debt Balance $ 20,249,935 $ - $ -
Secured Debt Balance 816,864,718 625,117,601 617,279,770
--------------------- -------------------- --------------------
Debt Capitalization $ 837,114,653 $ 625,117,601 $ 617,279,770
--------------------- -------------------- --------------------
TOTAL MARKET CAPITALIZATION $ 1,403,017,567 $ 1,155,627,760 $ 1,097,251,132
===================== ==================== ====================
Debt Capitalization/Total Market Capitalization 59.7% 54.1% 56.3%
Equity Capitalization/Total Market Capitalization 40.3% 45.9% 43.7%
Unsecured Debt Balance/Total Debt 2.4% 0.0% 0.0%
[RESTUBBED TABLE]
June 30, 2002 December 31, 2001 December 31, 2000
------------- ----------------- -----------------
Shares Outstanding 16,462,868 15,876,084 13,628,448
O.P. Units Outstanding 1,609,609 1,753,580 1,415,791
TOTAL Shares and O.P. Units 18,072,477 17,629,664 15,044,239
Market Price (at end of period) 27.11 23.20 19 1/8
Equity Market Capitalization $ 489,944,851 $ 409,008,205 $ 287,721,071
DEBT CAPITALIZATION
Unsecured Debt Balance $ - $ - $ -
Secured Debt Balance 606,195,457 506,175,818 524,782,225
--------------------- -------------------- --------------------
Debt Capitalization $ 606,195,457 $ 506,175,818 $ 524,782,225
--------------------- -------------------- --------------------
TOTAL MARKET CAPITALIZATION $ 1,096,140,308 $ 915,184,023 $ 812,503,296
===================== ==================== ====================
Debt Capitalization/Total Market Capitalization
Equity Capitalization/Total Market Capitalization 55.3% 55.3% 64.6%
Unsecured Debt Balance/Total Debt 44.7% 44.7% 35.4%
0.0% 0.0% 0.0%
[CHART OMITTED]
June 30, 2003 March 31, 2003 December 31, 2002
------------- -------------- -----------------
CAPITAL RESOURCES
Cash on Hand $ 15,035,033 $ 14,015,658 $ 18,628,137
Line of Credit Capacity (1) $ 200,000,000 $ 200,000,000 $ 200,000,000
Amount Used (includes letters of credit) (118,573,671) (147,573,671) (131,473,671
------------------- -------------------- ----------------
Available LOC (2) $ 81,426,329 $ 52,426,329 $ 68,526,329
Shelf Registration $ 500,000,000 $ 500,000,000 $ 500,000,000
Amount Used (155,977,292) (155,977,292) (155,977,292
------------------- -------------------- ----------------
Available Shelf $ 344,022,708 $ 344,022,708 $ 344,022,708
-------------------- -------------------- --------------------
TOTAL CAPITAL RESOURCES $ 440,484,070 $ 410,464,695 $ 431,177,174
-------------------- -------------------- --------------------
[RESTUBBED TABLE]
Cash on Hand $ 16,520,755 $ 16,242,450 $ 10,594,592
Line of Credit Capacity (1) $ 175,000,000 $ 175,000,000 $ 175,000,000
Amount Used (includes letters of credit) (119,673,671) (100,168,659) (115,873,671)
Available LOC (2) $ $ 55,326,32 $ 74,831,341 $ 59,126,329
Shelf Registration $ 200,000,000 $ 200,000,000 $ 200,000,000
Amount Used (148,925,000) (148,925,000) (102,925,000)
------------------- -------------------- ----------------
Available Shelf $ 51,075,000 $ 51,075,000 $ 97,075,000
------------------- -------------------- ----------------
TOTAL CAPITAL RESOURCES $ 122,922,084 $ 142,148,791 $ 166,795,921
------------------- -------------------- ----------------
(1) In connection with its acquisition of the Rouse properties the Company
obtained a $25 million unsecured Line of Credit of which $15 million was
available on June 30, 2003.
(2) subject to covenants that may restrict amounts that can be borrowed.
PAGE 4
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO OMITTED] LISTED
NYSE
BALANCE SHEET
(Wholly Owned vs. JVs)
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 2003
- ------------------------------------------------------------------------------------------------------------------------------------
PREIT PREIT's % Combined
Wholly Owned of JVs (4) Corporate TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $ 953,825,117 $197,499,583 - $1,151,324,700
Multifamily Properties 66,462,701 5,947,802 - 72,410,503
Industrial Properties 2,504,211 - - 2,504,211
Construction In Progress 11,600,909 1,559,524 - 13,160,433
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN REAL ESTATE 1,034,392,938 205,006,909 - 1,239,399,847
Accumulated Depreciation (66,565,965) (43,479,796) - (110,045,761)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Real Estate 967,826,973 161,527,113 - 1,129,354,086
- ------------------------------------------------------------------------------------------------------------------------------------
Advances to Partnerships and Joint Ventures - - 1,200,000 1,200,000
- ------------------------------------------------------------------------------------------------------------------------------------
967,826,973 161,527,113 1,200,000 1,130,554,086
- ------------------------------------------------------------------------------------------------------------------------------------
Allowance for Possible Losses -
- ------------------------------------------------------------------------------------------------------------------------------------
967,826,973 161,527,113 1,200,000 1,130,554,086
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 5,587,071 6,323,226 3,124,736 15,035,033
Rents and Other Receivables 13,005,445 9,022,617 2,014,452 24,042,514
Assets held for sale 1,475,704 (44,036) - 1,431,668
Intangible Assets 40,338,471 - 5,155,886 45,494,357
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets(1) 27,218,064 12,776,850 11,691,724 51,686,638
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 86,504,755 28,078,657 21,986,798 136,570,210
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 1,054,331,728 189,605,770 23,186,798 1,267,124,296
====================================================================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 543,476,676 155,488,042 - 698,964,718
Bank Loans Payable (2) 92,506,766 25,393,234 - 117,900,000
Acquisition Term Loan & Unsecured Line
of Credit 20,249,935 - - 20,249,935
Assets held for sale 1,119,984 179,955 - 1,299,939
Other Liabilities (3) 22,237,990 5,443,233 14,541,228 42,222,451
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 679,591,351 186,504,464 14,541,228 880,637,043
- ------------------------------------------------------------------------------------------------------------------------------------
37,899,202
- ------------------------------------------------------------------------------------------------------------------------------------
Minority Interest 5,680,717 - 56,147,376 61,828,093
- ------------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - 16,837,304 16,837,304
Capital Contributed in Excess of Par - - 220,081,547 220,081,547
Restricted Stock - - (3,121,496) (3,121,496)
Other Comprehensive Income - - (3,238,850) (3,238,850)
Distributions in Excess of Net Income - - 94,100,655 94,100,655
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - 324,659,160 324,659,160
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 685,272,068 $186,504,464 $ 395,347,764 $1,267,124,296
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
(Wholly Owned vs. JVs)
- ------------------------------------------------------------------------------------------------------------------------------------
December 31, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
PREIT PREIT's % Combined
Wholly Owned of JVs (4) Corporate TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $ 423,046,545 $ 197,299,357 - $ 620,345,902
Multifamily Properties 290,606,714 14,728,865 - 305,335,579
Industrial Properties 2,504,211 - - 2,504,211
Construction In Progress 23,271,863 1,554,110 - 24,825,973
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN REAL ESTATE 739,429,333 213,582,332 - 953,011,665
Accumulated Depreciation (136,733,257) (43,759,779) - (180,493,036)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Real Estate 602,696,076 169,822,553 - 772,518,629
- ------------------------------------------------------------------------------------------------------------------------------------
Advances to Partnerships and Joint Ventures - - 105,309 105,309
- ------------------------------------------------------------------------------------------------------------------------------------
602,696,076 169,822,553 105,309 772,623,938
- ------------------------------------------------------------------------------------------------------------------------------------
Allowance for Possible Losses - - -
- ------------------------------------------------------------------------------------------------------------------------------------
602,696,076 169,822,553 105,309 772,623,938
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 7,342,523 5,075,355 6,210,259 18,628,137
Rents and Other Receivables 8,847,093 10,122,016 4,395,970 23,365,079
Assets held for sale - - - -
Intangible Assets - - 12,793,886 12,793,886
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets(1) 18,306,800 13,981,793 17,708,873 49,997,466
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 34,496,416 29,179,164 41,108,988 104,784,568
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 637,192,492 199,001,717 41,214,297 877,408,506
====================================================================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 319,751,324 166,728,446 - 486,479,770
Bank Loans Payable (2) 119,229,707 11,570,293 - 130,800,000
Acquisition Term Loan & Unsecured Line
of Credit - - - -
Assets held for sale - - - -
Other Liabilities (3) 17,687,633 7,016,897 14,939,232 39,643,762
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 456,668,664 185,315,636 14,939,232 656,923,532
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Minority Interest 126,715 - 32,345,722 32,472,437
- ------------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - 16,697,117 16,697,117
Capital Contributed in Excess of Par - - 216,768,855 216,768,855
Restricted Stock - - (2,513,191) (2,513,191)
Other Comprehensive Income - - (4,365,728) (4,365,728)
Distributions in Excess of Net Income - - (38,574,516) (38,574,516)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - 188,012,537 188,012,537
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 456,795,379 $ 185,315,636 $ 235,297,491 $ 877,408,506
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
(Wholly Owned vs. JVs)
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
PREIT PREIT's % Combined
Wholly Owned of JVs (4) Corporate TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $ 427,826,795 $ 201,621,036 - $629,447,831
Multifamily Properties 256,420,569 29,125,026 - 285,545,595
Industrial Properties 2,504,211 - - 2,504,211
Construction In Progress 17,092,528 1,970,173 - 19,062,701
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN REAL ESTATE 703,844,103 232,716,235 - 936,560,338
Accumulated Depreciation (122,610,228) (44,386,374) - (166,996,602)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Real Estate 581,233,875 188,329,861 - 769,563,736
- ------------------------------------------------------------------------------------------------------------------------------------
Advances to Partnerships and Joint Ventures - - 358,331 358,331
- ------------------------------------------------------------------------------------------------------------------------------------
581,233,875 188,329,861 358,331 769,922,067
- ------------------------------------------------------------------------------------------------------------------------------------
Allowance for Possible Losses - - -
- ------------------------------------------------------------------------------------------------------------------------------------
581,233,875 188,329,861 358,331 769,922,067
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 4,782,767 7,756,219 3,981,769 16,520,755
Rents and Other Receivables 6,377,025 2,521,094 2,047,725 10,945,844
Assets held for sale
Intangible Assets - - 12,793,886 12,793,886
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets(1) 17,853,798 12,907,703 14,576,680 45,338,181
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 29,013,590 23,185,016 33,400,060 85,598,666
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 610,247,465 211,514,877 33,758,391 855,520,733
====================================================================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 310,142,918 177,552,539 - 487,695,457
Bank Loans Payable (2) 109,875,548 9,070,293 (445,841) 118,500,000
Acquisition Term Loan & Unsecured Line
of Credit - - - -
Assets held for sale - - - -
Other Liabilities (3) 14,616,237 7,628,463 10,684,286 32,928,986
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 434,634,703 194,251,295 10,238,445 639,124,443
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Minority Interest 695,676 - 31,857,194 32,552,870
- ------------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - 16,462,869 16,462,869
Capital Contributed in Excess of Par - - 211,205,950 211,205,950
Restricted Stock - - (3,204,433) (3,204,433)
Other Comprehensive Income - - (3,315,686) (3,315,686)
Distributions in Excess of Net Income - - (37,305,280) (37,305,280)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - 183,843,420 183,843,420
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 435,330,379 $ 194,251,295 $225,939,059 $855,520,733
====================================================================================================================================
(1) Deferred Costs, Prepaid Taxes and Expenses and Other Assets include Rents
and Other Receivables for Partnerships and Joint Ventures.
(2) A portion of the proceeds from the 2001 stock offering was used to reduce
the line of credit. Proceeds were first applied to reduce balances
associated with certain completed assets and then to reduce unallocated
corporate borrowings. This resulted in a negative balance in the corporate
allocation of the line of credit balances. The line of credit balances
allocated to development assets are based upon usage related to those
projects and were not reduced by stock offering proceeds.
(3) For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and
Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses
and Other Liabilities.
(4) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's
share of the Total Assets and Liabilities of the underlying properties. The
Company calculates the "gross up" by applying its percentage ownership
interest to the historical financial statements of its equity method
investments. The consolidated financial statements, which are presented in
accordance with GAAP, reflect only the Trust's Equity in these properties.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
Page 5
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003 [LOGO OMITTED] LISTED
NYSE
BALANCE SHEET (1)
(Line of Business)
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Other Combined
Retail Multifamily Properties Corporate TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost $1,151,324,700 $ 72,410,503 $15,664,644 $ - $ 1,239,399,847
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulated Depreciation (86,614,873) (21,379,445) (2,051,443) - (110,045,761)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Real Estate 1,064,709,827 51,031,058 13,613,201 - 1,129,354,086
- ------------------------------------------------------------------------------------------------------------------------------------
Investments in PREIT-RUBIN
Advances to Partnerships and Joint Ventures - - - 1,200,000 1,200,000
Advances to PREIT-RUBIN
- ------------------------------------------------------------------------------------------------------------------------------------
1,064,709,827 51,031,058 13,613,201 1,200,000 1,130,544,086
- ------------------------------------------------------------------------------------------------------------------------------------
Allowance for Possible Losses - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
1,064,709,827 51,031,058 13,613,201 1,123,207 1,130,477,293
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets:
Cash 10,721,507 1,188,790 3,124,736 15,035,033
Assets held for sale 1,431,668 - 1,431,668
Intangible Assets 40,338,471 - - 5,155,886 45,494,357
Other Assets, Net (2) 51,011,940 - 9,891,036 13,706,176 74,609,152
- ------------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 102,071,918 2,620,458 9,891,036 21,986,798 136,570,210
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 1,166,781,745 53,651,516 23,504,237 23,186,798 1,267,124,296
====================================================================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 661,629,178 37,335,540 - - 698,964,718
Bank Loans Payable (3) 87,553,497 - 30,346,504 - 117,900,000
Acquisition Term Loan & Unsecured Line
of Credit 20,249,935 - - - 20,249,935
Assets held for sale - 1,299,939 - - 1,299,939
Other Liabilities (4) 24,849,397 2,831,826 14,541,228 42,222,451
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 794,282,007 38,635,479 33,178,330 14,541,228 880,637,043
- ------------------------------------------------------------------------------------------------------------------------------------
Minority Interest 5,680,717 - 56,147,376 61,828,093
- ------------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - - 16,837,304 16,837,304
Capital Contributed in Excess of Par - - - 220,081,547 220,081,547
Restricted Stock - - - (3,121,496) (3,121,496)
Other Comprehensive Income - - - (3,238,850) (3,238,850)
Distributions in Excess of Net Income - - - 94,100,655 94,100,655
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - - 324,659,160 324,659,160
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 799,962,724 $ 38,635,479 $33,178,330 $ 395,347,764 $ 1,267,124,296
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET (1)
(Line of Business)
- ------------------------------------------------------------------------------------------------------------------------------------
December 31, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Other Combined
Retail Multifamily Properties Corporate TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost $ 620,345,902 $ 305,335,579 $27,330,184 $ - $953,011,665
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulated Depreciation (79,121,149) (99,346,274) (2,025,613) - (180,493,036)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Real Estate 541,224,753 205,989,305 25,304,571 - 772,518,629
- ------------------------------------------------------------------------------------------------------------------------------------
Investments in PREIT-RUBIN
Advances to Partnerships and Joint Ventures - - - 105,309 105,309
Advances to PREIT-RUBIN
- ------------------------------------------------------------------------------------------------------------------------------------
541,224,753 205,989,305 25,304,571 105,309 772,623,938
- ------------------------------------------------------------------------------------------------------------------------------------
Allowance for Possible Losses - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
541,224,753 205,989,305 25,304,571 105,309 772,623,938
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets:
Cash 8,812,330 3,629,864 (24,316) 6,210,259 18,628,137
Assets held for sale
Intangible Assets - - - 12,793,886 12,793,886
Other Assets, Net (2) 42,129,659 9,098,594 29,449 22,104,843 73,362,545
- ------------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 50,941,989 12,728,458 5,133 41,108,988 104,784,568
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 592,166,742 218,717,763 25,309,704 41,214,297 877,408,506
====================================================================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 280,092,311 206,387,459 - - 486,479,770
Bank Loans Payable (3) 94,712,082 2,500,000 33,587,919 - 130,800,000
Acquisition Term Loan & Unsecured Line
of Credit - - - - -
Assets held for sale - - - - -
Other Liabilities (4) 14,288,005 5,270,638 5,145,887 14,939,232 39,643,762
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 389,092,398 214,158,097 38,733,806 14,939,232 656,923,532
- ------------------------------------------------------------------------------------------------------------------------------------
Minority Interest 126,715 - 32,345,722 32,472,437
- ------------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - - 16,697,117 16,697,117
Capital Contributed in Excess of Par - - - 216,768,855 216,768,855
Restricted Stock - - - (2,513,191) (2,513,191)
Other Comprehensive Income - - - (4,365,728) (4,365,728)
Distributions in Excess of Net Income - - - (38,574,516) (38,574,516)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - - 188,012,537 188,012,537
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 389,219,113 $ 214,158,097 $38,733,806 $235,297,491 $877,408,506
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET (1)
(Line of Business)
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Other Combined
Retail Multifamily Properties Corporate TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost $629,447,831 $285,545,595 $ 21,566,912 $ - $ 936,560,338
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulated Depreciation (74,558,282) (90,438,537) (1,999,783) - (166,996,602)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Real Estate 554,889,549 195,107,058 19,567,129 - 769,563,736
- ------------------------------------------------------------------------------------------------------------------------------------
Investments in PREIT-RUBIN
Advances to Partnerships and Joint Ventures - - - 358,331 358,331
Advances to PREIT-RUBIN
- ------------------------------------------------------------------------------------------------------------------------------------
554,889,549 195,107,058 19,567,129 358,331 769,922,067
- ------------------------------------------------------------------------------------------------------------------------------------
Allowance for Possible Losses - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
554,889,549 195,107,058 19,567,129 358,331 769,922,067
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets:
Cash 9,522,709 2,995,031 21,246 3,981,769 16,520,755
Assets held for sale
Intangible Assets - - - 12,793,886 12,793,886
Other Assets, Net (2) 32,375,857 7,269,097 14,666 16,624,405 56,284,025
- ------------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 41,898,566 10,264,128 35,912 33,400,060 85,598,666
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 596,788,115 205,371,186 19,603,041 33,758,391 855,520,733
====================================================================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 289,293,993 198,401,464 - - 487,695,457
Bank Loans Payable (3) 84,429,488 - 34,516,353 (445,841) 118,500,000
Acquisition Term Loan & Unsecured Line
of Credit - - - - -
Assets held for sale - - - - -
Other Liabilities (4) 12,704,188 5,409,789 4,130,723 10,684,286 32,928,986
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 386,427,669 203,811,253 38,647,076 10,238,445 639,124,443
- ------------------------------------------------------------------------------------------------------------------------------------
Minority Interest 695,676 - 31,857,194 32,552,870
- ------------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - - 16,462,869 16,462,869
Capital Contributed in Excess of Par - - - 211,205,950 211,205,950
Restricted Stock - - - (3,204,433) (3,204,433)
Other Comprehensive Income - - - (3,315,686) (3,315,686)
Distributions in Excess of Net Income - - - (37,305,280) (37,305,280)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - - 183,843,420 183,843,420
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $387,123,345 $203,811,253 $ 38,647,076 $225,939,059 $ 855,520,733
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's
share of the Total Assets and Liabilities of the underlying properties. The
Company calculates the "gross up" by applying its percentage ownership
interest to the historical financial statements of its equity method
investments. The consolidated financial statements, which are presented in
accordance with GAAP, reflect only the Trust's Equity in these properties.
(2) Deferred Costs, Prepaid Taxes and Expenses and Other Assets include Rents
and Other Receivables for Partnerships and Joint Ventures.
(3) A portion of the proceeds from the 2001 stock offering was used to reduce
the line of credit. Proceeds were first applied to reduce balances
associated with certain completed assets and then to reduce unallocated
corporate borrowings. This resulted in a negative balance in the corporate
allocation of the line of credit balances. The line of credit balances
allocated to development assets are based upon usage related to those
projects and were not reduced by stock offering proceeds.
(4) For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and
Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses
and Other Liabilities.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
Page 6
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO OMITTED] LISTED
NYSE
INCOME STATEMENT (1)(2)
QUARTERLY COMPARISON
(Wholly Owned vs. JV) Q2 03
(3 months ended 6/30/03)
- ------------------------------------------------------------------------------------------------------------------------------------
Combined TOTAL %
Wholly Owned JVs Corporate TOTAL CHANGE
- ------------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 30,487,264 $ 7,228,316 $ - 37,715,580 17.1%
Straight-Lining of Base Rents 557,938 54,198 - 612,136 171.3%
Percentage Rents 205,350 82,791 - 288,141 -7.9%
Lease Termination 62,214 6,239 - 68,453 -89.1%
Expense Recoveries & Other Income 10,077,308 2,799,510 - 12,876,818 69.9%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 41,390,074 80% 10,171,054 20% $ - 0% 51,561,128 25.9%
- ------------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 11,620,471 2,839,652 - 14,460,123 45.1%
Real Estate Taxes 3,839,101 846,218 - 4,685,319 45.1%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 15,459,572 81% 3,685,870 19% - 0% 19,145,442 45.1%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 25,930,502 80% 6,485,184 20% - 0% 32,415,686 16.8%
====================================================================================================================================
OTHER INCOME (EXPENSES)
Management Company Revenue - - 3,791,550 3,791,550 76.2%
Interest Income - - 193,127 193,127 -45.6%
General & Administrative:
Corporate Payroll - - (3,948,117) (3,948,117) 11.7%
Other G&A Expenses - - (3,569,291) (3,569,291) 36.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Earnings before interest expenses,
taxes, depreciation and amortization 25,930,502 90% 6,485,184 22% (3,532,731) -12% 28,882,955 19.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Interest Expense (3) (9,931,193) (4,043,922) - (13,975,115) 20.8%
Depreciation & Amortization (6,994,165) (1,324,953) - (8,319,118) 8.3%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (16,925,358) (5,368,875) - (22,294,233) 15.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Gains (losses) on sales of interests
in Real Estate (79,800) 4,401,603 - 4,321,803 N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Income before Minority Interest 8,925,344 5,517,912 (3,532,731) 10,910,525 124.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Minority Interest of O.P. Unitholders - - (823,758) (823,758) 168.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Income from Operations 8,925,344 5,517,912 (4,356,489) 10,086,767 121.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate - - N/A
Minority Interest of O.P. Unitholders (15,649,831) (15,649,831) N/A
Gain (losses) on Disposition of
Discontinued Operations 150,200,805 150,200,805 N/A
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS 150,200,805 - (15,649,831) 134,550,974 N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - - N/A
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME $159,126,149 110% $ 5,517,912 4% $(20,006,320) -14% $144,637,741 3156.4%
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT (1)(2)
QUARTERLY COMPARISON
(Wholly Owned vs. JV) Q2 02
(3 months ended 6/30/02)
- ----------------------------------------------------------------------------------------------------------------------
Combined
Wholly Owned JVs Corporate TOTAL
- ----------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $23,390,961 $ 8,821,206 $ - $32,212,167
Straight-Lining of Base Rents 170,445 55,218 - 225,663
Percentage Rents 227,330 85,436 - 312,766
Lease Termination 565,684 61,132 - 626,816
Expense Recoveries & Other Income 4,033,797 3,545,249 - 7,579,046
- ----------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 28,388,217 69% 12,568,241 31% $ - 0% 40,956,458
- ----------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 6,800,594 3,165,313 - 9,965,907
Real Estate Taxes 2,192,138 1,037,595 - 3,229,733
- ----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 8,992,732 68% 4,202,908 32% - 0% 13,195,640
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 19,395,485 70% 8,365,333 30% - 0% 27,760,818
======================================================================================================================
OTHER INCOME (EXPENSES)
Management Company Revenue - - 2,151,596 2,151,596
Interest Income - - 354,849 354,849
General & Administrative:
Corporate Payroll - - (3,535,982) (3,535,982)
Other G&A Expenses - - (2,611,050) (2,611,050)
- ----------------------------------------------------------------------------------------------------------------------
Earnings before interest expenses,
taxes, depreciation and amortization 19,395,485 80% 8,365,333 35% (3,640,587) -15% 24,120,231
- ----------------------------------------------------------------------------------------------------------------------
Interest Expense (3) (7,237,902) (4,343,566) 10,757 (11,570,711)
Depreciation & Amortization (5,333,109) (2,347,670) (7,680,779)
- ----------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (12,571,011) (6,691,236) 10,757 (19,251,490)
- ----------------------------------------------------------------------------------------------------------------------
Gains (losses) on sales of interests
in Real Estate - - - -
- ----------------------------------------------------------------------------------------------------------------------
Income before Minority Interest 6,824,474 1,674,097 (3,629,830) 4,868,741
- ----------------------------------------------------------------------------------------------------------------------
Minority Interest of O.P. Unitholders - - (306,655) (306,655)
- ----------------------------------------------------------------------------------------------------------------------
Income from Operations 6,824,474 1,674,097 (3,936,485) 4,562,086
- ----------------------------------------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate 70,839 - - 70,839
Minority Interest of O.P. Unitholders (191,297) (191,297)
Gain (losses) on Disposition of
Discontinued Operations -
- ----------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS 70,839 (191,297) (120,458)
- ----------------------------------------------------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - - -
- ----------------------------------------------------------------------------------------------------------------------
NET INCOME $6,895,313 155% $ 1,674,097 38% $(4,127,782) -93% $ 4,441,628
- ----------------------------------------------------------------------------------------------------------------------
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's
share of the Total Revenues and Expenses of the underlying properties. The
Company calculates the "gross up" by applying its percentage ownership
interest to the historical financial statements of its equity method
investments.
(2) Prior period income and expenses have been restated to adjust for
discontinued operations.
(3) Capitalized interest expense for the line of credit and construction loans
of $367,111 not included in the quarter ended 6/30/03 and $322,243 not
included in the quarter ended 6/30/02.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
Page 7
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO OMITTED] LISTED
NYSE
INCOME STATEMENT (1) (2)
QUARTERLY COMPARISON
(Line of Business) Q2 03
(3 months ended 6/30/03)
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER Combined
RETAIL MULTIFAMILY PROPERTIES CORPORATE TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents $27,434,524 $ 11,295,625 $ 83,421 $ - $ 38,813,570
Less Vacancies and Concessions (1,097,990) - - (1,097,990)
Straight-Lining of Base Rents 612,136 - - - 612,136
Percentage Rents 288,141 - - - 288,141
Lease Termination 6,239 62,214 - - 68,453
Expense Recoveries and Other Income 12,495,833 380,985 - - 12,876,818
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 40,836,873 79% 10,640,834 21% 83,421 0% - - 51,561,128
- ------------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 10,176,739 4,279,586 3,798 - 14,460,123
Real Estate Taxes 3,700,646 983,776 897 - 4,685,319
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 13,877,385 72% 5,263,362 27% 4,695 0% - - 19,145,442
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 26,959,488 83% 5,377,472 17% 78,726 0% - - 32,415,686
====================================================================================================================================
TOTAL OTHER INCOME (EXPENSES)
Management Company Revenue - - - 3,791,550 3,791,550
Interest Income - - - 193,127 193,127
General and Administrative:
Corporate Payroll - - - (3,948,117) (3,948,117)
Other General & Administrative - - - (3,569,291) (3,569,291)
- ------------------------------------------------------------------------------------------------------------------------------------
Earnings before interest expenses,
taxes, depreciation and amortization 26,959,488 93% 5,377,472 19% 78,726 0% (3,532,731) -12% 28,882,955
- ------------------------------------------------------------------------------------------------------------------------------------
Interest Expense (3) (12,088,601) (1,886,514) - - (13,975,115)
Depreciation & Amortization (8,306,203) - (12,915) - (8,319,118)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (20,394,804) (1,886,514) (12,915) - (22,294,233)
- ------------------------------------------------------------------------------------------------------------------------------------
Gains(losses) on sales of interests in
Real Estate (79,800) 4,401,603 - - 4,321,803
- ------------------------------------------------------------------------------------------------------------------------------------
Income before Minority Interest 6,484,884 7,892,561 65,811 (3,532,731) 10,910,525
- ------------------------------------------------------------------------------------------------------------------------------------
Minority Interest of O.P. Unitholders - - - (823,758) (823,758)
- ------------------------------------------------------------------------------------------------------------------------------------
Income from Operations 6,484,884 7,892,561 65,811 (4,356,489) 10,086,767
- ------------------------------------------------------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate - - - - -
Minority Interest of O.P. Unitholders (15,649,831) (15,649,831)
Gain (losses) on Disposition of
Discontinued Operations 150,200,805 150,200,805
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - 150,200,805 - (15,649,831) 134,550,974
- ------------------------------------------------------------------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 6,484,884 4% $158,093,366 109% $ 65,811 0% $(20,006,320) -14% $ 144,637,741
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT (1) (2)
QUARTERLY COMPARISON
(Line of Business) Q2 02
(3 months ended 6/30/02)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL % OTHER Combined
CHANGE RETAIL MULTIFAMILY PROPERTIES CORPORATE TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents 15.7% $18,697,625 $14,772,223 $ 81,581 $ - $33,551,429
Less Vacancies and Concessions -18.0% - (1,339,262) - - (1,339,262)
Straight-Lining of Base Rents 171.3% 225,663 - - - 225,663
Percentage Rents -7.9% 312,766 - - - 312,766
Lease Termination -89.1% 557,019 69,797 - 626,816
Expense Recoveries and Other Income 69.9% 6,929,012 650,034 - - 7,579,046
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 25.9% 26,722,085 65% 14,152,792 35% 81,581 0% - - 40,956,458
- ------------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 45.1% 5,354,847 4,605,977 5,083 - 9,965,907
Real Estate Taxes 45.1% 1,982,544 1,246,292 897 - 3,229,733
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 45.1% 7,337,391 56% 5,852,269 44% 5,980 0% - - 13,195,640
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 16.8% 19,384,694 70% 8,300,523 30% 75,601 0% - - 27,760,818
====================================================================================================================================
TOTAL OTHER INCOME (EXPENSES)
Management Company Revenue 76.2% - - - 2,151,596 2,151,596
Interest Income -45.6% - - - 354,849 354,849
General and Administrative: -
Corporate Payroll 11.7% - - - (3,535,982) (3,535,982)
Other General & Administrative 36.7% - - - (2,611,050) (2,611,050)
- ------------------------------------------------------------------------------------------------------------------------------------
Earnings before interest expenses,
taxes, depreciation and amortization 19.7% 19,384,694 80% 8,300,523 34% 75,601 0% (3,640,587) -15% 24,120,231
- ------------------------------------------------------------------------------------------------------------------------------------
Interest Expense (3) 20.8% (8,030,891) (3,550,577) - 10,757 (11,570,711
Depreciation & Amortization 8.3% (5,370,284) (2,297,580) (12,915) - (7,680,779)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) 15.8% (13,401,175) (5,848,157) (12,915) 10,757 (19,251,490)
- ------------------------------------------------------------------------------------------------------------------------------------
Gains(losses) on sales of interests in
Real Estate N/A - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Income before Minority Interest 124.1% 5,983,519 2,452,366 62,686 (3,629,830) 4,868,741
- ------------------------------------------------------------------------------------------------------------------------------------
Minority Interest of O.P. Unitholders -168.6% - - - (306,655) (306,655)
- ------------------------------------------------------------------------------------------------------------------------------------
Income from Operations -121.1% 5,983,519 2,452,366 62,686 (3,936,485) 4,562,086
- ------------------------------------------------------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate N/A 70,839 - - - 70,839
Minority Interest of O.P. Unitholders N/A (191,297) (191,297)
Gain (losses) on Disposition of
Discontinued Operations N/A -
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS N/A 70,839 - - (191,297) (120,458)
- ------------------------------------------------------------------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) N/A - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME 3156.4% $ 6,054,358 136% $ 2,452,366 55% $ 62,686 1% $(4,127,782) -93% $ 4,441,628
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's
share of the Total Revenues and Expenses of the underlying properties. The
Company calculates the "gross up" by applying its percentage ownership
interest to the historical financial statements of its equity method
investments.
(2) Prior period income and expenses have been restated to adjust for
discontinued operations.
(3) Capitalized interest expense for the line of credit and construction loans
of $367,111 not included in the quarter ended 6/30/03 and $322,243 not
included in the quarter ended 6/30/02.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
Page 8
PREIT PEI
Pennsylvania REIT [LOGO OMITTED] LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) NYSE
RETAIL INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Property Status)
Q2 03
(3 months ended 6/30/03)
----------------------------------------------------
Combined
TOTAL WO JVs
----------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $27,434,524 $ 20,926,888 $ 6,507,636
Straight-Lining of Base Rents 612,136 557,938 54,198
Percentage Rents 288,141 205,350 82,791
Lease Termination and Other Income 6,239 - 6,239
Exp. Recoveries and Other Income 12,495,833 9,720,052 2,775,781
----------------------------------------------------
TOTAL REVENUES 40,836,873 31,410,228 77% 9,426,645 23%
----------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 10,176,739 7,611,336 2,565,403
Real Estate Taxes 3,700,646 2,915,065 785,581
----------------------------------------------------
Total Operating Expenses 13,877,385 10,526,401 76% 3,350,984 24%
----------------------------------------------------
NET OPERATING INCOME 26,959,488 20,883,827 77% 6,075,661 23%
----------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense (12,088,601) (8,190,465) (3,898,136)
Depreciation & Amortization (8,306,203) (6,981,250) (1,324,953)
----------------------------------------------------
TOTAL OTHER INCOME (EXP.) (20,394,804) (15,171,715) (5,223,089)
----------------------------------------------------
Gains (losses) on sales of int. in R.E (79,800) (79,800) -
----------------------------------------------------
Income before Minority Int. 6,484,884 5,632,312 852,572
----------------------------------------------------
Discontinued Operations: -
----------------------------------------------------
Income from Disposed Real Estate - -
----------------------------------------------------
Gain (losses) on Disposition of
Discontinued Operations -
----------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - -
----------------------------------------------------
Extraordinary item (Loss on
early extinguishments of debt) - - -
----------------------------------------------------
NET INCOME $ 6,484,884 $ 5,632,312 87% $ 852,572 13%
----------------------------------------------------
Q2 02
(3 months ended 6/30/02)
----------------------------- ---------------------------------------------------
% Change % Change % Change Combined
TOTAL WO JVs TOTAL WO JVs
----------------------------- ---------------------------------------------------
R.E. OPERATING REVENUES
Base Rents 46.7% 82.4% -9.9% $18,697,625 $ 11,474,448 $ 7,223,177
Straight-Lining of Base Rents 171.3% 227.3% -1.8% 225,663 170,445 55,218
Percentage Rents -7.9% -9.7% -3.1% 312,766 227,330 85,436
Lease Termination and Other Income N/A N/A N/A 557,019 495,887 61,132
Exp. Recoveries and Other Income 80.3% 179.5% -19.6% 6,929,012 3,478,199 3,450,813
----------------------------- ---------------------------------------------------
TOTAL REVENUES 52.8% 98.2% -13.3% 26,722,085 15,846,309 59% 10,875,776 41%
----------------------------- ---------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 90.0% 178.1% -2.0% 5,354,847 2,736,575 2,618,272
Real Estate Taxes 86.7% 167.7% -12.1% 1,982,544 1,088,983 893,561
----------------------------- ---------------------------------------------------
Total Operating Expenses 89.1% 175.2% -4.6% 7,337,391 3,825,558 52% 3,511,833 48%
----------------------------- ---------------------------------------------------
NET OPERATING INCOME 39.1% 73.7% -17.5% 19,384,694 12,020,751 62% 7,363,943 38%
----------------------------- ---------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense 50.5% 98.9% -0.4% (8,030,891) (4,117,865) (3,913,026)
Depreciation & Amortization 54.7% 114.6% -37.4% (5,370,284) (3,253,848) (2,116,436)
----------------------------- ---------------------------------------------------
TOTAL OTHER INCOME (EXP.) 52.2% 105.8% -13.4% (13,401,175) (7,371,713) (6,029,462)
----------------------------- ---------------------------------------------------
Gains (losses) on sales of int. in R.E N/A N/A N/A - - -
----------------------------- ---------------------------------------------------
Income before Minority Int. 8.4% 21.2% -36.1% 5,983,519 4,649,038 1,334,481
----------------------------- ---------------------------------------------------
Discontinued Operations: -
----------------------------- ---------------------------------------------------
Income from Disposed Real Estate N/A N/A N/A 70,839 70,839
----------------------------- ---------------------------------------------------
Gain (losses) on Disposition of
Discontinued Operations N/A N/A N/A
----------------------------- ---------------------------------------------------
TOTAL DISCONTINUED OPERATIONS N/A N/A N/A 70,839 70,839 -
----------------------------- ---------------------------------------------------
Extraordinary item (Loss on
early extinguishments of debt) N/A N/A N/A - - -
----------------------------- ---------------------------------------------------
NET INCOME 7.1% 19.3% -36.1% $ 6,054,358 $ 4,719,877 78% $ 1,334,481 22%
----------------------------- ---------------------------------------------------
SAME STORE COMPARISON
- ---------------------
Q2 03
(3 months ended 6/30/03)
---------------------------------------------------------------------- ------- ----------
Combined % Change
TOTAL (2) SAME NEW REDEV DIVEST Same Store
---------------------------------------------------------------------- ------- ----------
Base Rents $27,434,524 $ 11,563,752 $ 12,238,657 $ 3,632,115 $ - 2.7%
Straight-Lining of Base Rents 612,136 175,294 363,462 73,380 - 37.0%
Percentage Rents 288,141 95,344 100,522 92,275 - 4.1%
Lease Termination 6,239 - 6,239 - - N/A
Exp. Recoveries and Other Income 12,495,833 3,401,468 7,603,957 1,490,408 - 7.2%
---------------------------------------------------------------------- ------- ----------
TOTAL REVENUES 40,836,873 15,235,858 37% 20,312,837 50% 5,288,178 13% - 0% 0.8%
---------------------------------------------------------------------- ------- ----------
R.E. OPERATING EXPENSES
Operating and Maintenance 10,176,739 2,677,015 6,078,282 1,421,442 - 13.0%
Real Estate Taxes 3,700,646 1,235,909 2,077,946 386,791 - 8.2%
---------------------------------------------------------------------- ------- ----------
Total Operating Expenses 13,877,385 3,912,924 28% 8,156,228 59% 1,808,233 13% - 0% 11.4%
---------------------------------------------------------------------- ------- ----------
NET OPERATING INCOME 26,959,488 11,322,934 42% 12,156,609 45% 3,479,945 13% - 0% -2.4%
---------------------------------------------------------------------- ------- ----------
OTHER INCOME (EXP.)
Interest Expense (12,088,601) (5,205,220) (5,668,799) (1,214,582) - 21.5%
Depreciation & Amortization (8,306,203) (3,190,162) (3,979,876) (1,136,165) - 2.4%
---------------------------------------------------------------------- ------- ----------
TOTAL OTHER INCOME (EXP.) (20,394,804) (8,395,382) (9,648,675) (2,350,747) - 13.5%
---------------------------------------------------------------------- ------- ----------
Gain (losses) on sales of int. in R.E. (79,800) - (79,800) N/A
---------------------------------------------------------------------- ------- ----------
Income before Minority Int. 6,484,884 2,927,552 2,507,934 1,049,398 - -30.3%
---------------------------------------------------------------------- ------- ----------
Discontinued Operations:
---------------------------------------------------------------------- ------- ----------
Income from Disposed Real Estate -
---------------------------------------------------------------------- ------- ----------
Gain (losses) on Disposition of
Discontinued Operations - - N/A
---------------------------------------------------------------------- ------- ----------
TOTAL DISCONTINUED OPERATIONS - - - N/A
---------------------------------------------------------------------- ------- ----------
Extraordinary item (Loss on
early extinguishment of debt) - - - - - N/A
---------------------------------------------------------------------- ------- ----------
NET INCOME $ 6,484,884 $ 2,927,552 45% $ 2,507,934 39% $ 1,049,398 16% $ - 0% -30.3%
---------------------------------------------------------------------- ------- ----------
Q2 02
(3 months ended 6/30/02)
---------------------------------------------------------------------- ---------
Combined
TOTAL (2) SAME NEW REDEV DIVEST
---------------------------------------------------------------------- ---------
Base Rents $18,697,625 $ 11,255,456 $ 3,959,294 $3,482,875 $ 365,202
Straight-Lining of Base Rents 225,663 127,930 75,890 21,843 2,278
Percentage Rents 312,766 91,584 54,110 167,072 -
Lease Termination 557,019 463,531 43,851 49,637 -
Exp. Recoveries and Other Income 6,929,012 3,172,971 2,183,823 1,572,218 86,118
---------------------------------------------------------------------- ---------
TOTAL REVENUES 26,722,085 15,111,472 57% 6,316,968 24% 5,293,645 20% 453,598
---------------------------------------------------------------------- ---------
R.E. OPERATING EXPENSES
Operating and Maintenance 5,354,847 2,368,960 1,647,484 1,338,403 53,357
Real Estate Taxes 1,982,544 1,142,221 496,159 344,164 46,595
---------------------------------------------------------------------- ---------
Total Operating Expenses 7,337,391 3,511,181 48% 2,143,643 29% 1,682,567 23% 99,952
---------------------------------------------------------------------- ---------
NET OPERATING INCOME 19,384,694 11,600,291 60% 4,173,325 22% 3,611,078 19% 353,646
---------------------------------------------------------------------- ---------
OTHER INCOME (EXP.)
Interest Expense (8,030,891) (4,282,757) (2,507,954) (1,240,180) (162,072)
Depreciation & Amortization (5,370,284) (3,115,239) (1,263,000) (992,045) (120,735)
---------------------------------------------------------------------- ---------
TOTAL OTHER INCOME (EXP.) (13,401,175) (7,397,996) (3,770,954) (2,232,225) (282,807)
---------------------------------------------------------------------- ---------
Gain (losses) on sales of int. in R.E. - - - - -
---------------------------------------------------------------------- ---------
Income before Minority Int. 5,983,519 4,202,295 402,371 1,378,853 70,839
---------------------------------------------------------------------- ---------
Discontinued Operations:
---------------------------------------------------------------------- ---------
Income from Disposed Real Estate 70,839
---------------------------------------------------------------------- ---------
Gain (losses) on Disposition of
Discontinued Operations
---------------------------------------------------------------------- ---------
TOTAL DISCONTINUED OPERATIONS 70,839 70,839
---------------------------------------------------------------------- ---------
Extraordinary item (Loss on
early extinguishment of debt) - - - -
---------------------------------------------------------------------- ---------
NET INCOME $ 6,054,358 $ 4,202,295 69% $ 402,371 7% $1,378,853 23% $ 70,839
---------------------------------------------------------------------- ---------
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's share of the Total Revenues and Expenses of the
underlying properties. The Company calculates the "gross up" by applying its percentage ownership interest to the historical
financial statements of its equity method investments.
(2) Discontinued operations are not included in the total column. The Income before minority interest from discontinued operations
is included in the total income row labeled "Income from Disposed Real Estate"
NOTE: Reconciliation to GAAP is on pages 33 to 36.
Page 9
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO OMITTED] LISTED
NY
RETAIL INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Property Status)
Q2 03
(3 months ended 6/30/03)
----------------------------------------------------------------- ------------------------
Combined % Change % Change
TOTAL Enclosed Mall Power Center Strip Center TOTAL Enclosed Mall
----------------------------------------------------------------- ------------------------
R.E. OPERATING REVENUES
Base Rents $ 27,434,524 $ 19,354,200 $ 6,525,930 $ 1,554,394 46.7% 75.7%
Straight-Lining of Base Rents 612,136 424,720 143,651 43,765 171.3% 164.7%
Percentage Rents 288,141 216,497 69,994 1,650 -7.9% -19.9%
Lease Termination and Other Income 6,239 6,239 - - N/A N/A
Exp. Recoveries and Other Income 12,495,833 10,868,568 1,234,032 393,233 80.3% 92.4%
----------------------------------------------------------------- ------------------------
TOTAL REVENUES 40,836,873 30,870,224 76% 7,973,607 20% 1,993,042 5% 52.8% 79.4%
----------------------------------------------------------------- ------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 10,176,739 9,014,207 820,795 341,737 90.0% 103.4%
Real Estate Taxes 3,700,646 2,774,771 733,276 192,599 86.7% 131.5%
----------------------------------------------------------------- ------------------------
Total Operating Expenses 13,877,385 11,788,978 85% 1,554,071 11% 534,336 4% 89.1% 109.4%
----------------------------------------------------------------- ------------------------
NET OPERATING INCOME 26,959,488 19,081,246 71% 6,419,536 24% 1,458,706 5% 39.1% 64.9%
----------------------------------------------------------------- ------------------------
OTHER INCOME (EXP.)
Interest Expense (12,088,601) (7,935,857) (4,115,161) (37,583) 50.5% 73.0%
Depreciation & Amortization (8,306,203) (5,965,547) (1,922,375) (418,281) 54.7% 91.3%
----------------------------------------------------------------- ------------------------
TOTAL OTHER INCOME (EXP.) (20,394,804) (13,901,404) (6,037,536) (455,864) 52.2% 80.4%
----------------------------------------------------------------- ------------------------
Gains(losses) on sales of int. in R.E. (79,800) - - (79,800) N/A N/A
----------------------------------------------------------------- ------------------------
Income before Minority Int. 6,484,884 5,179,842 382,000 923,042 8.4% 33.9%
----------------------------------------------------------------- ------------------------
Discontinued Operations:
----------------------------------------------------------------- ------------------------
Income from Disposed Real Estate - - - - -100.0% N/A
----------------------------------------------------------------- ------------------------
Gain (losses) on Disposition of
Discontinued Operations - N/A N/A
----------------------------------------------------------------- ------------------------
TOTAL DISCONTINUED OPERATIONS - - - - N/A N/A
Extraordinary item (Loss on
early extinguishment of debt) - - - - N/A N/A
----------------------------------------------------------------- ------------------------
NET INCOME $ 6,484,884 $ 5,179,842 80% $ 382,000 6% $ 923,042 14% 7.1% 33.9%
----------------------------------------------------------------- ------------------------
Q2 02
(3 months ended 6/30/02)
-------------------------- ------------------------------------------------------------------
% Change % Change Combined
Power Center Strip Center TOTAL Enclosed Mall Power Center Strip Center
-------------------------- ------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents 2.2% 19.8% $ 18,697,625 $ 11,014,558 $ 6,385,159 $ 1,297,908
Straight-Lining of Base Rents 307.8% 45.9% 225,663 160,447 35,227 29,989
Percentage Rents 78.3% N/A 312,766 270,264 39,259 3,243
Lease Termination and Other Income N/A N/A 557,019 110,769 446,250 -
Exp. Recoveries and Other Income 25.9% 31.0% 6,929,012 5,648,416 980,487 300,109
-------------------------- ------------------------------------------------------------------
TOTAL REVENUES 1.1% 22.2% 26,722,085 17,204,454 64% 7,886,382 30% 1,631,249 6%
-------------------------- ------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 43.5% -2.7% 5,354,847 4,431,447 572,175 351,225
Real Estate Taxes 19.8% 12.0% 1,982,544 1,198,659 611,970 171,915
-------------------------- ------------------------------------------------------------------
Total Operating Expenses 31.2% 2.1% 7,337,391 5,630,106 77% 1,184,145 16% 523,140 7%
-------------------------- ------------------------------------------------------------------
NET OPERATING INCOME -4.2% 31.6% 19,384,694 11,574,348 60% 6,702,237 35% 1,108,109 6%
-------------------------- ------------------------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense 20.8% -2.6% (8,030,891) (4,586,657) (3,405,633) (38,601)
Depreciation & Amortization 0.6% 22.6% (5,370,284) (3,117,971) (1,911,148) (341,165)
-------------------------- ------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) 13.6% 20.0% (13,401,175) (7,704,628) (5,316,781) (379,766)
-------------------------- ------------------------------------------------------------------
Gains(losses) on sales of int. in R.E. N/A N/A - - -
-------------------------- ------------------------------------------------------------------
Income before Minority Int. -72.4% 26.7% 5,983,519 3,869,720 1,385,456 728,343
-------------------------- ------------------------------------------------------------------
Discontinued Operations:
-------------------------- ------------------------------------------------------------------
Income from Disposed Real Estate N/A N/A 70,839 70,839
-------------------------- ------------------------------------------------------------------
Gain (losses) on Disposition of
Discontinued Operations N/A N/A
-------------------------- ------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS N/A N/A 70,839 - - 70,839
Extraordinary item (Loss on
early extinguishment of debt) N/A N/A - - - -
-------------------------- ------------------------------------------------------------------
NET INCOME -72.4% 15.5% $ 6,054,358 $ 3,869,720 64% $ 1,385,456 23% $ 799,182 13%
-------------------------- ------------------------------------------------------------------
SAME STORE COMPARISON
- ---------------------
Q2 03
(3 months ended 6/30/03)
-------------------------------------------------------------- -------------------------
Combined % Change % Change
TOTAL Enclosed Mall Power Center Strip Center TOTAL (1) Enclosed Mall
---------------------------------------------------------------- --------------------------
R.E. OPERATING REVENUES
Base Rents $ 11,563,752 $ 3,976,899 $ 6,525,930 $ 1,060,923 2.7% 3.0%
Straight-Lining of Base Rents 175,294 34,875 143,651 (3,232) 37.0% -38.5%
Percentage Rents 95,344 25,350 69,994 - 4.1% -48.4%
Lease Termination - - - - N/A N/A
Exp. Recoveries and Other Income 3,401,468 1,866,251 1,234,032 301,185 7.2% -3.3%
---------------------------------------------------------------- --------------------------
TOTAL REVENUES 15,235,858 5,903,375 39% 7,973,607 52% 1,358,876 9% 0.8% -0.2%
---------------------------------------------------------------- --------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 2,677,015 1,624,346 820,795 231,874 13.0% 7.6%
Real Estate Taxes 1,235,909 371,721 733,276 130,912 8.2% -8.9%
---------------------------------------------------------------- --------------------------
Total Operating Expenses 3,912,924 1,996,067 51% 1,554,071 40% 362,786 9% 11.4% 4.1%
---------------------------------------------------------------- --------------------------
NET OPERATING INCOME 11,322,934 3,907,308 35% 6,419,536 57% 996,090 9% -2.4% -2.3%
---------------------------------------------------------------- --------------------------
OTHER INCOME (EXP.)
Interest Expense (5,205,220) (1,106,264) (4,061,373) (37,583) 21.5% 31.9%
Depreciation & Amortization (3,190,162) (1,005,849) (1,922,375) (261,938) 2.4% 6.0%
---------------------------------------------------------------- --------------------------
TOTAL OTHER INCOME (EXP.) (8,395,382) (2,112,113) (5,983,748) (299,521) 13.5% 18.1%
---------------------------------------------------------------- --------------------------
Gain (losses) on sales of int. in R.E - - -
Income before Minority Int. 2,927,552 1,795,195 435,788 696,569 -30.3% -18.8%
---------------------------------------------------------------- --------------------------
Extraordinary item (Loss on
early extinguishment of debt) - - - -
---------------------------------------------------------------- --------------------------
NET INCOME $ 2,927,552 $ 1,795,195 61% $ 435,788 15% $ 696,569 24% -30.3% -18.8%
---------------------------------------------------------------- --------------------------
Q2 02
(3 months ended 6/30/02)
---------------------------------------------------------------------------------------------
% Change % Change Combined
Power Center Strip Center TOTAL Enclosed Mall Power Center Strip Center
------------------------- -------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents 2.2% 5.3% $ 11,255,456 $ 3,862,344 $ 6,385,159 $ 1,007,953
Straight-Lining of Base Rents 307.8% -109.0% 127,930 56,701 35,227 36,002
Percentage Rents 78.3% N/A 91,584 49,082 39,259 3,243
Lease Termination N/A N/A 463,531 17,281 446,250 -
Exp. Recoveries and Other Income 25.9% 15.1% 3,172,971 1,930,882 980,487 261,602
------------------------- -------------------------------------------------------------------
TOTAL REVENUES 1.1% 3.8% 15,111,472 5,916,290 39% 7,886,382 52% 1,308,800 9%
------------------------- -------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 43.5% -19.2% 2,368,960 1,509,813 572,175 286,972
Real Estate Taxes 19.8% 7.2% 1,142,221 408,126 611,970 122,125
------------------------- -------------------------------------------------------------------
Total Operating Expenses 31.2% -11.3% 3,511,181 1,917,939 55% 1,184,145 34% 409,097 12%
------------------------- -------------------------------------------------------------------
NET OPERATING INCOME -4.2% 10.7% 11,600,291 3,998,351 34% 6,702,237 58% 899,703 8%
------------------------- -------------------------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense 19.3% -2.6% (4,282,757) (838,523) (3,405,633) (38,601)
Depreciation & Amortization 0.6% 2.8% (3,115,239) (949,330) (1,911,148) (254,761)
------------------------- -------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) 12.5% 2.1% (7,397,996) (1,787,853) (5,316,781) (293,362)
------------------------- -------------------------------------------------------------------
Gain (losses) on sales of int. in R.E - - - -
Income before Minority Int. -68.5% 14.9% 4,202,295 2,210,498 1,385,456 606,341
------------------------- -------------------------------------------------------------------
Extraordinary item (Loss on
early extinguishment of debt) - - -
------------------------- -------------------------------------------------------------------
NET INCOME -68.5% 14.9% $ 4,202,295 $ 2,210,498 53% $ 1,385,456 33% $ 606,341 14%
------------------------- -------------------------------------------------------------------
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's share of the Total Assets and Liabilities of the
underlying properties. The Company calculates the "gross up" by applying its percentage ownership interest to the historical
financial statements of its equity method investments.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
Page 10
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO OMITTED] LISTED
NY
MULTIFAMILY INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Property Status)
Q2 03
(3 months ended 6/30/03)
--------------------------------------------------------- --------------------------------
% Change % Change % Change
Combined TOTAL Wholly Owned JVs TOTAL WO JVs
--------------------------------------------------------- --------------------------------
REAL ESTATE REVENUES
Rents $ 11,295,625 $ 10,511,959 $ 783,666 N/A N/A N/A
Less Vacancies & Concessions (1,097,990) (1,035,004) (62,986) N/A N/A N/A
Lease Termination 62,214 62,214 - N/A N/A N/A
Other Revenues 380,985 357,256 23,729 N/A N/A N/A
--------------------------------------------------------- --------------------------------
TOTAL REVENUES 10,640,834 9,896,425 93% 744,409 7% N/A N/A N/A
--------------------------------------------------------- --------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 4,279,586 4,005,337 274,249 N/A N/A N/A
Real Estate Taxes 983,776 923,139 60,637 N/A N/A N/A
--------------------------------------------------------- --------------------------------
TOTAL OPERATING EXPENSES 5,263,362 4,928,476 94% 334,886 6% N/A N/A N/A
--------------------------------------------------------- --------------------------------
NET OPERATING INCOME 5,377,472 4,967,949 92% 409,523 8% N/A N/A N/A
--------------------------------------------------------- --------------------------------
OTHER INCOME (EXPENSE)
Interest Expense (1,886,514) (1,740,728) (145,786) N/A N/A N/A
Depreciation & Amortization - - - N/A N/A N/A
--------------------------------------------------------- --------------------------------
TOTAL OTHER INCOME (EXPENSE) (1,886,514) (1,740,728) (145,786) N/A N/A N/A
--------------------------------------------------------- --------------------------------
Gains(losses) on sales of Real Estate 154,602,408 150,200,805 4,401,603 N/A N/A N/A
--------------------------------------------------------- --------------------------------
Extraordinary item (Loss on
early ext. of debt) - - -
--------------------------------------------------------- --------------------------------
NET INCOME $ 158,093,366 $ 153,428,026 97% $ 4,665,340 3% N/A N/A N/A
--------------------------------------------------------- --------------------------------
Q2 02
(3 months ended 6/30/02)
-------------------------------------------------------
Combined TOTAL Wholly Owned JVs
-------------------------------------------------------
REAL ESTATE REVENUES
Rents $14,772,223 $13,036,949 $ 1,735,274
Less Vacancies & Concessions (1,339,262) (1,202,017) (137,245)
Lease Termination 69,797 69,797 -
Other Revenues 650,034 555,598 94,436
-------------------------------------------------------
TOTAL REVENUES 14,152,792 12,460,327 88% 1,692,465 12%
-------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 4,605,977 4,058,936 547,041
Real Estate Taxes 1,246,292 1,102,258 144,034
-------------------------------------------------------
TOTAL OPERATING EXPENSES 5,852,269 5,161,194 88% 691,075 12%
-------------------------------------------------------
NET OPERATING INCOME 8,300,523 7,299,133 88% 1,001,390 12%
-------------------------------------------------------
OTHER INCOME (EXPENSE)
Interest Expense (3,550,577) (3,120,037) (430,540)
Depreciation & Amortization (2,297,580) (2,066,346) (231,234)
-------------------------------------------------------
TOTAL OTHER INCOME (EXPENSE) (5,848,157) (5,186,383) (661,774)
-------------------------------------------------------
Gains(losses) on sales of Real Estate - - -
-------------------------------------------------------
Extraordinary item (Loss on
early ext. of debt) - - -
-------------------------------------------------------
NET INCOME $ 2,452,366 $ 2,112,750 86% $ 339,616 14%
-------------------------------------------------------
NOTE: Reconciliation to GAAP is on pages 33 to 36.
Page 11
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO OMITTED] LISTED
NYSE
----------------------------------------------------
FUNDS FROM OPERATIONS (1) Q2:6/30/03 % Change Q2:6/30/02
---------- -------- ----------
Net Income $144,637,741 3156.4% $4,441,628
Minority Interest in operating partnership-operations 823,758 168.6% 306,655
Minority Interest in operating partnership-discontinued op. 15,649,831 N/A 191,297
(Gain) loss on sales of interests in real estate (4,321,803) N/A -
(150,200,805) N/A -
Depreciation & amortization: (2)
Wholly owned and consolidated partnerships 6,929,165 116.4% 3,201,763
Unconsolidated partnerships and joint ventures 1,324,953 -43.6% 2,347,670
Discontinued operations - N/A 2,187,081
Excess purchase price over net assets acquired
Financing prepayment fee
------------ ------ -----------
FFO $14,842,840 17.1% $12,676,094
------------ ------ -----------
Weighted Average Shares and O.P. Units Outstanding 18,614,284 3.3% 18,024,071
------------ ------ -----------
Net Income per Share $8.70 3078.0% $0.27
------------ ------ -----------
FFO per Share $0.80 13.4% $0.70
------------ ------ -----------
FUNDS AVAILABLE FOR DISTRIBUTION
FFO $14,842,840 17.1% $12,676,094
Adjustments:
Straight-lining of base rents (612,136) 168.6% (227,941)
Recurring capital expenditures (761,533) -13.6% (881,762)
Amortization of debt premium (1,117,767) N/A -
------------ ------ -----------
FAD $12,351,404 6.8% $11,566,391
------------ ------ -----------
Weighted Average Shares and O.P. Units Outstanding 18,614,284 3.3% 18,024,071
------------ ------ -----------
FAD per Share $0.66 3.4% $0.64
------------ ------ -----------
PAYOUT RATIOS
Dividend per Share $0.51 0.0% $0.51
------------ ------ -----------
Payout Ratio of Net Income 5.86% -180.3% 186.19%
============ ====== ===========
Payout Ratio of FFO 63.96% -8.6% 72.52%
============ ====== ===========
Payout Ratio of FAD 76.86% -2.6% 79.47%
------------ ------ -----------
----------------------------------------------------
(1) Certain prior period amounts have been reclassified to conform with the
current period presentation.
(2) Excludes depreciation of non-real estate assets and amortization of deferred
financing costs. These amounts were previously included in the depreciation
amounts and deducted in a separate line.
Page 12
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO OMITTED] LISTED
NYSE
KEY RATIOS
- ------------------------------------------------------------------------------------------------------------------------------------
Q2: 6/30/2003 Q2: 6/30/2002
------------- -------------
Coverage Ratio
Interest Coverage Ratio (EBITDA/Interest Expense) 2.07 2.08
- ------------------------------------------------------------------------------------------------------------------------------------
Leverage Ratios(1)
Debt / Total Market Capitalization 59.7% 55.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Operating Ratios
NOI/Real Estate Revenues 62.9% 67.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Return on Investment Ratios(1)
FFO/Equity Market Capitalization 2.6% 2.6%
FFO multiple (Closing share price / Annualized FFO per share for quarter) 9.39 9.64
NOI/Total Market Capitalization 2.3% 2.5%
NOI/Investment in Real Estate 2.6% 3.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Payout Ratios
FFO Payout Ratio (Dividend/FFO) per Share 64.0% 72.5%
FAD Payout Ratio (Dividend/FAD) per Share 76.9% 79.5%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Calculations based on closing stock price at the end of the quarter.
(2) Calculations were adjusted for discontinued operations.
The calculation of these ratios includes wholly owned properties, PREIT's
proportional share of joint venture properties and properties classified as
held for sale.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
Page 13
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO OMITTED] LISTED
NYSE
DEBT SCHEDULE of WHOLLY OWNED PROPERTIES
- ------------------------------------------------------------------------------------------------------------------------------------
PREIT's
Share of O/S
Mortgage
PREIT's Total PREIT's PREIT's PREIT's Debt and
Ownership Investment to Investment to Accumulated Depreciation Construction
Property Name Interest Date Date(1) Depreciation Costs Loans
- ------------- -------- ---- ------- ------------ ----- -----
Retail Properties
Beaver Valley Mall 100% $ 57,211,492 $ 57,211,492 $ 1,923,962 $ 55,287,530 $ 47,527,460
Cherry Hill Mall (2) (3) 73% 203,720,555 188,579,555 676,912 187,902,643 81,432,170
60,269,858
Christiana Power I 100% 35,077,062 35,077,062 3,994,394 31,082,668 -
Creekview 100% 18,876,353 18,876,353 1,464,365 17,411,988 -
Crest Plaza Shopping Center 100% 12,810,756 12,810,756 875,397 11,935,359 -
Dartmouth Mall 100% 49,986,337 49,986,337 8,081,901 41,904,436 70,000,000
Echelon Mall 100% 14,174,470 14,174,470 23,624 14,150,846 -
Exton Square Mall 100% 144,461,835 144,461,835 481,497 143,980,338 107,997,941
Festival at Exton 100% 18,983,896 18,983,896 1,929,753 17,054,143 -
Gallery at Market East 100% 47,766,994 47,766,994 198,988 47,568,006 -
The Commons at Magnolia 100% 9,873,257 9,873,257 706,594 9,166,663 -
Magnolia Mall 100% 56,228,498 56,228,498 6,738,036 49,490,462 21,239,760
Moorestown Mall 100% 70,057,334 70,057,334 232,729 69,824,605 64,250,000
Northeast Tower Center 100% 29,404,958 29,404,958 2,333,956 27,071,002 -
Northeast Tower Center-Home Depot 100% 13,578,891 13,578,891 1,154,206 12,424,685 12,500,000
Paxton Towne Centre 100% 52,853,957 52,853,957 3,547,177 49,306,780 -
Plymouth Meeting Mall 100% 58,180,357 58,180,357 96,967 58,083,390 -
Prince Georges Plaza 100% 77,822,374 77,822,374 9,391,162 68,431,212 44,371,370
South Blanding Village 100% 9,497,650 9,497,650 3,084,738 6,412,912 -
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Retail Properties $ 980,567,026 $ 965,426,026 $ 46,936,358 $ 918,489,668 $509,588,559
- ------------------------------------------------------------------------------------------------------------------------------------
Multifamily Properties
Emerald Point 100% 34,785,321 34,785,321 8,883,228 25,902,093 14,951,180
Regency Lakeside Apartments 100% 31,677,380 31,677,380 8,694,936 22,982,444 18,936,937
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Multifamily Properties $ 66,462,701 $ 66,462,701 $ 17,578,164 $ 48,884,537 $ 33,888,117
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial and Land Properties
ARA Services, Allentown, PA 100% $ 84,610 $ 84,610 $ 81,362 $ 3,248 $ -
ARA Services, Pennsauken, NJ 100% 210,473 210,473 167,319 43,154 -
Interstate Container Corporation 100% 1,802,271 1,802,271 1,457,598 344,673 -
Sears Roebuck & Co. 100% 406,857 406,857 345,164 61,693 -
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Industrial and Land Properties $ 2,504,211 $ 2,504,211 $ 2,051,443 $ 452,768 $ -
- ------------------------------------------------------------------------------------------------------------------------------------
Properties Under Construction/Development
Other Development (4) 100% -
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Properties Under Development $ - $ - $ - $ - $ -
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL for WHOLLY OWNED PROPERTIES $1,049,533,938 $1,034,392,938 $ 66,565,965 $ 967,826,973 $543,476,676
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL for PARTNERSHIPS and JOINT VENTURES $ 479,550,662 $ 205,006,909 $ 43,479,796 $ 161,527,113 $155,488,042
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
CORPORATE
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL for WHOLLY OWNED and JV PROPERTIES $1,529,084,600 $1,239,399,847 $110,045,761 $1,129,354,086 $698,964,718
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Acquisition
Term
Loan & Current
PREIT's Share of Unsecured Mortgage Annual Mortgage
Bank Loan Debt Line Interest Mortgage Balance at Date
Property Name Outstanding of Credit Rate Debt Service Maturity Maturity Notes
- ------------- ----------- --------- ---- ------------ -------- -------- -----
Retail Properties
Beaver Valley Mall $ - $ - 7.36% $ 3,972,402 $ 42,265,601 2012
Cherry Hill Mall (2) (3) - - 10.60% 9,132,792 70,237,549 2005
- - 5.00% 3,889,582 58,148,407 2005
Christiana Power I - - 0.00% - -
Creekview 10,086,118 - 0.00% - -
Crest Plaza Shopping Center 4,850,608 - 0.00% - -
Dartmouth Mall - - 4.95% 4,483,668 57,594,279 2013
Echelon Mall - - 0.00%
Exton Square Mall - - 6.95% 8,102,242 93,034,212 2008
Festival at Exton - - 0.00% - -
Gallery at Market East - 10,249,935 0.00% Acquisition
term loan
The Commons at Magnolia - - 0.00% - -
Magnolia Mall 6,208,921 - 8.20% 2,597,726 17,782,882 2007
Moorestown Mall - - 4.95% 4,115,367 52,863,321 2013
Northeast Tower Center 6,785,440 - 0.00% - -
Northeast Tower Center-Home Depot - - 7.40% 925,000 12,500,000 2005
Paxton Towne Centre 51,224,500 - 0.00% - -
Plymouth Meeting Mall - 10,000,000 0.00% Unsecured
line of
credit
Prince Georges Plaza 1,872,091 - 8.70% 4,134,937 39,986,536 2007
South Blanding Village - - 0.00% - -
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Retail Properties $ 81,027,678 $20,249,935 7.03% $41,353,716 $444,412,787
- ------------------------------------------------------------------------------------------------------------------------------------
Multifamily Properties
Emerald Point - - 6.79% 1,424,571 12,328,907 2008
Regency Lakeside Apartments - - 7.56% 1,730,185 17,712,589 2007
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Multifamily Properties $ - $ - 7.22% $ 3,154,756 $ 30,041,496
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial and Land Properties
ARA Services, Allentown, PA $ - $ - 0.00% $ - $ -
ARA Services, Pennsauken, NJ - - 0.00% - -
Interstate Container Corporation - - 0.00% - -
Sears Roebuck & Co. - - 0.00% - -
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Industrial and Land Properties $ - $ - 0.00% $ - $ -
- ------------------------------------------------------------------------------------------------------------------------------------
Properties Under Construction/Development
Other Development (4) 11,479,088 - 0.00% - - Development
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Properties Under Development $ 11,479,088 $ - 0.00% $ - $ -
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL for WHOLLY OWNED PROPERTIES $ 92,506,766 $20,249,935 7.04% $44,508,472 $474,454,283
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL for PARTNERSHIPS and JOINT VENTURES $ 25,393,234 $ - 7.71% $14,796,432 $138,186,633
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
CORPORATE $ - $ -
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL for WHOLLY OWNED and JV PROPERTIES $117,900,000 $20,249,935 7.19% $59,304,904 $612,640,916
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes development and CIP costs.
(2) PREIT acquired a 73% partnership interest in New Castle Associates. New
Castle Associates, which acquired Cherry Hill Mall in a transaction that
immediately preceded the Company's acquisition of the New Castle associates
partnership interest, is consolidated for accounting purposes.
(3) PREIT's Investment to date is net of an allocation of the purchase price to
the value of in-place leases, a market value assessment of the in-place
leases, a deferral of a portion of the purchase price related to the 27%
minority interest and includes improvements to the asset since the purchase.
(4) Development costs are included in the balance sheet under other assets.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
Page 14
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO OMITTED] LISTED
NYSE
DEBT SCHEDULE of PARTNERSHIPS AND JOINT VENTURES
- ------------------------------------------------------------------------------------------------------------------------------------
PREIT's
Share of O/S
Mortgage
PREIT's Total PREIT's PREIT's PREIT's Debt and
Ownership Investment to Investment to Accumulated Depreciation Construction
Property Name Interest Date Date(1) Depreciation Costs Loans
- ------------- -------- ---- ------- ------------ ----- -----
Retail Properties
Court at Oxford Valley 50% $ 55,616,098 $ 27,808,049 $ 3,975,662 $ 23,832,387 $ 22,105,726
Metroplex Shopping Center (Blue Route) 50% 82,091,872 41,045,936 3,031,386 38,014,550 32,285,560
Laurel Mall 40% 31,371,983 12,548,793 4,463,848 8,084,945 8,623,372
Lehigh Valley Mall 50% 29,320,828 14,660,414 9,302,929 5,357,485 23,975,390
Palmer Park Mall 50% 28,268,580 14,134,290 5,408,609 8,725,681 9,211,783
Red Rose Commons 50% 20,395,442 10,197,721 1,230,441 8,967,280 13,891,057
Rio Mall 60% 8,219,542 4,931,725 2,262,147 2,669,578 -
Springfield Park I&II 50% 13,215,326 6,607,663 524,596 6,083,067 1,878,161
Whitehall Mall 50% 29,358,608 14,679,304 5,262,042 9,417,262 7,152,225
Willow Grove Park 30% 169,796,780 50,939,034 4,216,855 46,722,179 32,917,345
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Retail Properties $467,655,058 $197,552,929 $39,678,515 $157,874,414 $152,040,619
- ------------------------------------------------------------------------------------------------------------------------------------
Multifamily Properties
Fox Run Apartments, PA 50% 5,754,532 2,877,266 2,041,909 835,357 2,666,029
Will-O-Hill 50% 6,141,072 3,070,536 1,759,372 1,311,164 781,394
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Multifamily Properties $ 11,895,604 $ 5,947,802 $ 3,801,281 $ 2,146,521 $ 3,447,423
- ------------------------------------------------------------------------------------------------------------------------------------
Construction in Progress/Development
Pavilion at Market East 50% N/A $ 1,506,178 - $ 1,506,178 -
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Properties Under Development $ - $ 1,506,178 $ - $ 1,506,178 $ -
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL for PARTNERSHIPS and JOINT
VENTURES $479,550,662 $205,006,909 $43,479,796 $161,527,113 $155,488,042
- ------------------------------------------------------------------------------------------------------------------------------------
DEBT SCHEDULE of PARTNERSHIPS AND JOINT VENTURES
- ------------------------------------------------------------------------------------------------------------------------------------
PREIT's Current
Share of Bank Mortgage Annual Mortgage
Loan Debt Interest Mortgage Balance at Date of
Property Name Outstanding Rate Debt Service Maturity Maturity Notes
- ------------- ----------- ---- ------------ -------- -------- -----
Retail Properties
Court at Oxford Valley $ - 8.02% $ 2,319,426 $ 15,966,965 2011
Metroplex Shopping Center (Blue Route) 7,564,116 7.25% 2,680,953 28,784,676 2011
Laurel Mall - 7.63% 1,080,781 8,832,000 2003
Lehigh Valley Mall - 7.90% 2,479,260 21,750,440 2006
Palmer Park Mall - 6.77% 830,610 7,837,197 2009
Red Rose Commons - 7.66% 1,220,048 12,425,422 2009
Rio Mall - 0.00% - -
Springfield Park I&II - 7.79% 202,561 1,411,804 2010
Whitehall Mall - 6.77% 641,436 6,128,937 2008
Willow Grove Park 16,322,941 8.39% 3,014,080 32,192,318 2006
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Retail Properties $23,887,057 7.73% $14,469,155 $135,329,759
- ------------------------------------------------------------------------------------------------------------------------------------
Multifamily Properties
Fox Run Apartments, PA - 6.95% 222,414 2,404,521 2009
Will-O-Hill - 6.55% 104,863 452,353 2008
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Multifamily Properties $ - 6.86% $ 327,277 $ 2,856,874
- ------------------------------------------------------------------------------------------------------------------------------------
Construction in Progress/Development
Pavilion at Market East $ 1,506,177 0.00% - - Construction in Progress
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total Properties Under Development $ 1,506,177 - $ - $ -
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL for PARTNERSHIPS and JOINT
VENTURES $25,393,234 7.71% $14,796,432 $138,186,633
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes development and CIP costs.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
Page 15
Pennsylvania REIT
PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO] LISTED
[OMITTED] NYSE
DEBT ANALYSIS
Outstanding Debt
% of Total % of Total
Fixed Rate Indebtedness Floating Rate Indebtedness
------------- ------------ ------------- ------------
Wholly Owned
Mortgage Notes Payable $ 543,476,676 64.9% $ - 0.0%
Revolving Line of Credit - 0.0% 92,506,766 11.1%
Acquisition Term Loan & Unsecured Line of Credit 0.0% 20,249,935 2.4%
------------- -------------
SUB-TOTAL 543,476,676 64.9% 112,756,701 13.5%
Partnerships and Joint Ventures (at PREIT's share)
Mortgage Notes Payable 155,488,042 18.6% - 0.0%
Revolving Line of Credit - 0.0% 25,393,234 3.0%
Construction loans payable - 0.0% - 0.0%
------------- -------------
SUB-TOTAL 155,488,042 18.6% 25,393,234 3.0%
Corporate
Revolving Line of Credit - 0.0% - 0.0%
------------- -------------
SUB-TOTAL - 0.0% - 0.0%
TOTAL OUTSTANDING DEBT 698,964,718 138,149,935
SWAP 75,000,000 (75,000,000)
------------- -------------
TOTAL DEBT AFTER HEDGE $ 773,964,718 92.5% $ 63,149,935 7.5%
[RESTUBBED]
% of Total
Total Indebtedness
------------- ------------
Wholly Owned
Mortgage Notes Payable $ 543,476,676 64.9% OUTSTANDING PRINCIPAL BALANCE
Revolving Line of Credit 92,506,766 11.1%
Acquisition Term Loan & Unsecured Line of Credit 20,249,935 2.4%
-------------
SUB-TOTAL 656,233,377 78.4% [GRAPHIC OMITTED]
Partnerships and Joint Ventures (at PREIT's share)
Mortgage Notes Payable 155,488,042 18.6%
Revolving Line of Credit 25,393,234 3.0%
Construction loans payable - 0.0% Fixed Rate Debt = 92%
-------------
SUB-TOTAL 180,881,276 21.6% Floating Rate Debt - 8%
Corporate
Revolving Line of Credit - 0.0%
-------------
SUB-TOTAL - 0.0%
TOTAL OUTSTANDING DEBT 837,114,653
SWAP -
-------------
TOTAL DEBT AFTER HEDGE $ 837,114,653 100.0%
Weighted Average Interest Rates
Weighted
Average
Principal Balance Interest Rate
----------------- -------------
Fixed Rate Debt $ 773,964,718 7.07%
Floating Rate Debt 63,149,935 3.55%
------------- ----
TOTAL $ 837,114,653 6.81%
Interest Rate Hedging Instruments
Expiration Fixed Rate in Floating Rate in
Nominal Amount Interest Rate Limit Date Nominal Amount Agreement Agreement Expiration Date
-------------- ------------------- ---------- -------------- ------------- ---------------- ---------------
CAP None
SWAP $ 20,000,000 6.0175% 30-day LIBOR December, 2003
SWAP $ 55,000,000 5.9960% 30-day LIBOR December, 2003
Mortgage/Construction Maturity Schedule (1) (2)
Cumulative %
of Debt
Year Maturities % of Debt Expiring Expiring
---- -------------- ------------------ ------------
2003 8,832,000 1.4% 1.4%
2004 - 0.0% 1.4%
2005 140,885,956 23.0% 24.4%
2006 53,942,758 8.8% 33.2%
2007 75,482,007 12.3% 45.6%
2008 111,944,409 18.3% 63.8%
2009 22,667,140 3.7% 67.5%
2010 1,411,804 0.2% 67.8%
2011 44,751,641 7.3% 75.1%
2012 42,265,601 6.9% 82.0%
Thereafter 110,457,600 18.0% 100.0%
------------- -----
$ 612,640,916 100.0%
(1) Does not include scheduled amortization
(2) The weighted average period to mortgage maturity is 5.3 years.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
Average Debt Balance
Mortgage Debt Acquisition Term
& Construction Line of Credit & Loan & Unsecured
Loans Bank Loans Line of Credit TOTAL
-------------- ---------------- ---------------- -------------
Beginning Balance 3/31/2003 $478,217,601 $ 146,900,000 $ - $ 625,117,692
Pay down line of credit 4/18/2003 (2,000,000) (2,000,000)
Acquisition term loan 4/28/2003 175,000,000 175,000,000
Acquisition (Cherry Hill Mall and Exton Square Mall) 4/28/2003 251,039,996 251,039,996
Refinancing (Dartmouth Mall and Moorestown Mall) 5/16/2003 134,250,000 134,250,000
Pay down (Proceeds from refinancing) 5/16/2003 (41,000,000) (41,000,000)
Pay down (Multifamily Joint Ventures properties) 6/2/2003 (9,874,637) (9,874,637)
Pay down (Multifamily wholly-owned properties) 6/2/2003 (151,503,206) (151,503,206)
Pay down acquisition loan (sale of 13 multifamily) 6/2/2003 (160,774,107) (160,774,107)
Acquisition (Plymouth Meeting Mall and Echelon Mall) 6/4/2003 14,000,000 14,000,000
Pay down (Multifamily) 6/16/2003 (3,975,958) (3,975,958)
PREIT-Acquisition (Plymouth Meeting Mall) 6/17/2003 10,000,000 10,000,000
Debt Amortization 6/30/2003 (3,165,036) (3,165,036)
------------ ------------- ------------ -------------
Ending Balance 6/30/2003 $698,964,718 $ 117,900,000 $ 20,249,935 $ 837,114,653
Weighted Average Balance 668,747,163 $ 129,020,879 $ 72,501,776 $ 870,269,818
Page 16
Pennsylvania REIT
PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO] LISTED
[OMITTED] NYSE
DEBT RATIOS(1)
-------------------------------------------
6/30/2003 6/30/2002
- ----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities to Gross Asset Value
Ratio of Total Liabilities(2) to Gross Asset Value(3)
less than or equal to 70.0%.
Total Liabilities $ 869,295,566 $ 639,124,443
Gross Asset Value $ 1,451,596,076 $ 1,141,187,214
Ratio 59.89% 56.01%
- ----------------------------------------------------------------------------------------------------------------------------------
Borrowing Base
Ratio of Outstanding Line of Credit(4) to Borrowing
Base Value(5) shall be less than or equal to 70%.
Outstanding Line of Credit (includes letters of credit) $ 118,573,671 $ 119,673,671
Borrowing Base Value $ 171,710,000 $ 220,160,000
Ratio 69.05% 54.36%
- ----------------------------------------------------------------------------------------------------------------------------------
EBITDA to Interest Expense
Ratio of EBITDA(6) to Interest Expense(7) greater
than or equal to 1.75 to 1.00.
EBITDA $ 100,609,636 $ 87,241,509
Interest Expense $ 47,479,403 $ 39,831,261
Ratio 2.12 2.19
- ----------------------------------------------------------------------------------------------------------------------------------
Adjusted EBITDA to Debt Service
Ratio of Adjusted EBITDA(8) to Debt Service(9) greater
than or equal to 1.55 to 1.00.
Adjusted EBITDA $ 98,839,001 $ 84,866,302
Debt Service $ 54,788,643 $ 46,926,911
Ratio 1.80 1.81
- ----------------------------------------------------------------------------------------------------------------------------------
(1) Debt ratios are based on loan covenants included in the Trust's Line of Credit facility, led by Wells Fargo Bank National
Association, which was effective as of December 29, 2000 and the second amendment to credit agreement effective as of April 28,
2003.
(2) Total Liabilities defined as: Total PREIT consolidated GAAP liabilities plus certain letters of credit and other off balance
sheet liabilities.
(3) Gross Asset Value defined as: The sum of (i) Wholly Owned and Joint Venture Consolidated Property NOI for the previous rolling
four quarter period, capitalized at 9.25%, (ii.) cash and cash equivalents (iii) and all accounts receivable net of reserves
(iv) CIP (Construction-In-Progress) and land held for development at cost.
(4) Outstanding Line of Credit includes all letters of credit secured by the line of credit.
(5) Borrowing Base Value defined as: The lesser of (i) aggregate appraised value of all Borrowing Base Properties and (ii) the
aggregate sum of the Permanent Loan Estimates of all Borrowing Base Properties. Permanent Loan Estimate for a given property is
defined as the NOI for the previous rolling four quarters divided by the product of (i) 1.3 and (ii) the percent of a principal
amount of a loan required to be paid each year in order to repay the principal amount of such loan in full based on a 25 years
amortization, utilizing a rate of interest equal to the greater of (x) the rate of 10-year Treasury Constant maturities plus
2.0% or (y) 8.50%, in equal monthly installments of principal and interest.
(6) EBITDA defined as: rolling four quarters of net earnings (loss) of the Trust before minority interests and distributions to
holders of Preferred Stock, plus the sum of (I) depreciation and amortization expense and other non-cash charges, plus (ii)
interest expense, plus (iii) all provisions for income taxes, minus (plus) (iv) extraordinary gains (losses), plus (v) the
greater of (a) ownership share or (b) recourse share of EBITDA of unconsolidated affiliates.
(7) Interest Expense defined as: all paid, accrued or capitalized interest expense excluding capitalized interest funded from
construction loans.
(8) Adjusted EBITDA defined as: EBITDA minus the Reserve for Replacements for all properties.
(9) Debt Service defined as: Interest Expense plus regularly scheduled principal payments on Indebtedness other than any balloon,
bullet or similar principal payment on any Indebtedness.
Page 17
Pennsylvania REIT
PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO] LISTED
[OMITTED] NYSE
PORTFOLIO SUMMARY--RETAIL WHOLLY OWNED
(Sorted by State)
- -----------------------------------------------------------------------------------------------------------------------------
Property Management Property Ownership
Retail Properties-Wholly Owned City State Subtype Status Status Interest
- ------------------------------ ---- ----- -------- ---------- -------- ---------
Christiana Power Center I Newark DE Power Center PREIT Existing 100%
South Blanding Village Jacksonville FL Strip Center PREIT Existing 100%
Dartmouth Mall Dartmouth MA Enclosed Mall PREIT Existing 100%
Prince Georges Plaza Hyattsville MD Enclosed Mall PREIT Redevelopment 100%
Cherry Hill Mall Cherry Hill NJ Enclosed Mall PREIT New 73%
Moorestown Mall Moorestown NJ Enclosed Mall PREIT New 100%
Echelon Mall Voorhees NJ Enclosed Mall PREIT New 100%
Crest Plaza Shopping Center (1)(2) Allentown PA Strip Center PREIT Redevelopment 100%
Exton Square Mall Exton PA Enclosed Mall PREIT New 100%
Festival at Exton Exton PA Strip Center PREIT Existing 100%
Paxton Towne Center (1) Harrisburg PA Power Center PREIT Existing 100%
Beaver Valley Mall Monaca PA Enclosed Mall PREIT New 100%
Northeast Tower Center Philadelphia PA Power Center PREIT Existing 100%
The Gallery at Market East Philadelphia PA Enclosed Mall PREIT New 100%
Plymouth Meeting Mall Plymouth Mtg. PA Enclosed Mall PREIT New 100%
Creekview Shopping Center Warrington PA Power Center PREIT Existing 100%
Magnolia Mall (1) Florence SC Enclosed Mall PREIT Redevelopment 100%
The Commons at Magnolia Florence SC Strip Center PREIT New 100%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL WHOLLY OWNED
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL JOINT VENTURE
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL FOR Wholly Owned and Joint Venture
- -----------------------------------------------------------------------------------------------------------------------------
AVERAGE FOR Wholly Owned and Joint Venture
- -----------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Year Built/ Years
Date Last Since Owned GLA Owned GLA TOTAL
Retail Properties-Wholly Owned Acquired Renovated Renovation (anchors) (non-anchors) Owned GLA
- ------------------------------ -------- ----------- ---------- --------- ------------- ---------
Christiana Power Center I 1998 1998 5 190,814 111,595 302,409
South Blanding Village 1988/1990 1986 17 73,921 32,736 106,657
Dartmouth Mall 1997 1971/2000 3 301,583 322,206 623,789
Prince Georges Plaza 1998 1959/1990 13 404,462 346,782 751,244
Cherry Hill Mall 2003 1961/1990 13 - 540,712 540,712
Moorestown Mall 2003 1963/2000 3 408,356 326,240 734,596
Echelon Mall 2003 1970/1998 5 310,840 434,844 745,684
Crest Plaza Shopping Center (1)(2) 1964 1959/1991 12 45,000 60,992 105,992
Exton Square Mall 2003 1973/2000 3 440,301 370,767 811,068
Festival at Exton 1998 1991 12 60,425 84,578 145,003
Paxton Towne Center (1) 1999 2001 2 151,627 292,863 444,490
Beaver Valley Mall 2002 1970/1991 12 511,267 448,091 959,358
Northeast Tower Center 1998/1999 1997/1998 5 250,903 182,521.0 433,424
The Gallery at Market East 2003 1977/1983 20 - 192,440 192,440
Plymouth Meeting Mall 2003 1966/1999 4 185,000 413,590 598,590
Creekview Shopping Center 1999 2001 2 - 136,086 136,086
Magnolia Mall (1) 1997 1979/1992 11 343,118 215,289 558,407
The Commons at Magnolia 1999 1991/2002 1 51,574 52,870 104,444
- --------------------------------------------------------------------------------------------------------------------
TOTAL WHOLLY OWNED 3,729,191 4,565,202 8,294,393
- --------------------------------------------------------------------------------------------------------------------
TOTAL JOINT VENTURE 1,860,244 2,412,672 4,272,916
- --------------------------------------------------------------------------------------------------------------------
TOTAL FOR Wholly Owned and Joint Venture 5,589,435 6,977,874 12,567,309
- --------------------------------------------------------------------------------------------------------------------
AVERAGE FOR Wholly Owned and Joint Venture 6.89
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Space TOTAL
Not Owned Property Majors / Lease
Retail Properties-Wholly Owned (Name/GLA) GLA Anchors Expiration
- ------------------------------ ---------- -------- ------- ----------
Christiana Power Center I - 302,409 Costco 1/31/19
Dick's Sporting Goods 11/30/13
South Blanding Village - 106,657 Staples 9/30/08
Food Lion 7/31/08
Dartmouth Mall - 623,789 JC Penney 7/31/09
Sears 4/12/06
Prince Georges Plaza - 751,244 JC Penney 7/31/04
Hecht 10/31/08
Cherry Hill Mall JC Penney 740,770 1,281,482 JC Penney N/A
Macy's Macy's N/A
Strawbridge's Strawbridge's N/A
Moorestown Mall Lord & Taylor 321,200 1,055,796 Boscov's 10/31/10
Strawbridge's Lord & Taylor N/A
Sears 10/5/22
Strawbridge's N/A
Echelon Mall Boscov's 396,783 1,142,467 Boscov's N/A
Strawbridge's Strawbridge's N/A
Crest Plaza Shopping Center (1)(2) Target 143,130 249,122 Weis Market 1/31/07
Target N/A
Exton Square Mall Strawbridge's 277,468 1,088,536 Boscov's 10/31/19
K-Mart JC Penney 5/31/20
K-Mart N/A
Sears 1/31/20
Strawbridge's N/A
Festival at Exton - 145,003 Sears Hardware 8/18/03
Clemen's 10/31/11
Paxton Towne Center (1) Target 273,058 717,548 Target N/A
Costco Kohl's 1/25/21
Weis 11/30/20
Costco N/A
Beaver Valley Mall Kaufmann's 204,770 1,164,128 Boscov's 9/30/18
JC Penney 9/30/17
Sears 8/15/06
Northeast Tower Center Raymour & 38,678 472,102 Home Depot 9/30/05
Flanigan Dick's Sporting Goods 7/31/08
Petsmart 2/28/12
Wal-Mart 1/31/14
The Gallery at Market East - 192,440 K-Mart N/A
Strawbridge's N/A
Plymouth Meeting Mall Strawbridge's 214,635 813,225 AMC Theater 12/31/18
Boscov's 10/31/16
Strawbridge's N/A
Creekview Shopping Center Target 288,916 425,002 Target N/A
Lowe's Lowe's N/A
Genuardi's 12/31/21
Magnolia Mall (1) - 558,407 Belk 1/31/06
Best Buy 1/31/13
JC Penney 3/31/07
Sears 10/18/04
The Commons at Magnolia Target 126,200 230,644 Goody's 5/31/12
Target N/A
- --------------------------------------------------------------------------------------------------------------------
TOTAL WHOLLY OWNED 3,025,608 11,320,001
- --------------------------------------------------------------------------------------------------------------------
TOTAL JOINT VENTURE - 1,907,459 6,180,375
- --------------------------------------------------------------------------------------------------------------------
TOTAL FOR Wholly Owned and Joint Venture - 4,933,067 17,500,376
- --------------------------------------------------------------------------------------------------------------------
AVERAGE FOR Wholly Owned and Joint Venture
- --------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Summary of Properties for Wholly Owned and
Joint Venture Properties
- -----------------------------------------------------------------------------------------
Enclosed Mall PREIT Managed Existing Wholly owned
14 21 16 18
- -----------------------------------------------------------------------------------------
Power Center Third Party Managed New Joint Venture
8 7 9 10
- -----------------------------------------------------------------------------------------
Strip Center Redevelopment
6 3
- -----------------------------------------------------------------------------------------
28 28 28 28
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Summary of Total Owned GLA for Wholly Owned and
Joint Venture Properties
- -----------------------------------------------------------------------------------------------------------------------------------
Enclosed Mall PREIT Managed Existing Wholly Owned Top 5 assets as a percentage of
Total
Owned GLA:
8,764,894 9,432,480 5,900,915 8,294,393 31.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Power Center Third Party Managed New Joint Venture Top asset as a percentage of Total
Owned GLA:
3,047,905 3,134,829 5,250,751 4,272,916 7.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Strip Center Redevelopment
754,510 1,415,643
- -----------------------------------------------------------------------------------------------------------------------------------
12,567,309 12,567,309 12,567,309 12,567,309
- -----------------------------------------------------------------------------------------------------------------------------------
(1) Property is currently under development or redevelopment; however, certain
stores are open.
(2) Target has purchased its parcel, and it is currently under construction.
Pennsylvania REIT PREIT PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) NYSE
PORTFOLIO SUMMARY--RETAIL JOINT VENTURE [GRAPHIC OMITTED]
(Sorted by State)
- -----------------------------------------------------------------------------------------------------------------------------------
Property Management Property
Retail Properties-Joint Venture City State Subtype Status Status
- ------------------------------- ---- ----- -------- ---------- --------
Rio Mall Rio Grande NJ Strip Center Third Party Existing
Lehigh Valley Mall Allentown PA Enclosed Mall Third Party Existing
Whitehall Mall Allentown PA Power Center Third Party Existing
Palmer Park Mall Easton PA Enclosed Mall PREIT Existing
Laurel Mall Hazleton PA Enclosed Mall Third Party Existing
Red Rose Commons Lancaster PA Power Center Third Party Existing
The Court at Oxford Valley Langhorne PA Power Center Third Party Existing
Metroplex Shopping Center Plymouth Mtg PA Power Center Third Party Existing
Springfield Park I & II Springfield PA Strip Center PREIT Existing
Willow Grove Park Willow Grove PA Enclosed Mall PREIT New
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR JOINT VENTURE
- -----------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- -----------------------------------------------------------------------------------------------------------------------------------
Ownership Date Year Built/Last Years Since Owned GLA Owned GLA(non TOTAL Owned
Interest Acquired Renovated Renovation (anchors) anchors) GLA
- --------- -------- --------------- ----------- --------- ------------- -----------
60% 1973 1973/1999 4 136,066 29,517 165,583
50% 1973 1977/1996 7 212,000 467,556 679,556
50% 1964 1964/1998 5 294,635 239,086 533,721
50% 1972 1972/1998 5 314,235 133,162 447,397
40% 1988 1973/1995 8 350,753 207,441 558,194
50% 1998 1998 5 - 263,452 263,452
50% 1997 1996 7 176,831 280,031 456,862
50% 1999 2001 2 67,185 410,276 477,461
50% 1997/1998 1997/1998 5 83,539 43,292 126,831
30% 2000 1982/2001 2 225,000 338,859 563,859
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR JOINT VENTURE 1,860,244 2,412,672 4,272,916
- -----------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL
Space Not Owned (Name/GLA) Property GLA Majors/Anchors Lease Expiration
-------------------------- ------------ -------------- ----------------
- 165,583 K-Mart 7/31/18
Staples 10/31/04
JC Penney 371,986 1,051,542 Macy's 7/31/12
Strawbridge's JC Penney N/A
Firestone Strawbridge's N/A
- 533,721 Kohl's 3/9/07
Sears 9/18/11
Bed, Bath & Beyond 1/31/10
- 447,397 BonTon 7/25/14
Boscov's 10/31/18
- 558,194 Boscov's 4/30/08
K-Mart 8/31/19
JC Penney 10/31/09
Weis Markets 199,590 463,042 Weis Markets N/A
Home Depot Home Depot N/A
Home Depot 247,624 704,486 Best Buy 12/31/11
BJ's Dick's Sporting Goods 4/15/11
Linens N Things 2/14/17
Target 300,729 778,190 Target N/A
Lowe's Lowe's N/A
Giant 2/28/21
Target 145,669 272,500 Target N/A
Bed, Bath & Beyond 1/31/09
LA Fitness 3/31/17
Sears 641,861 1,205,720 Sears N/A
Bloomingdale's Bloomingdale's N/A
Strawbridge Strawbridge's N/A
Macy's 1/31/22
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR JOINT VENTURE - 1,907,459 6,180,375
- -----------------------------------------------------------------------------------------------------------------------------------
Page 19
Pennsylvania REIT PREIT PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) NYSE
[GRAPHIC OMITTED]
Property Acquisitions/Dispositions Summary
- -----------------------------------------------------------------------------------------------------------------------------------
Ownership Date Acquired,
Name of Project, Location Square Feet/Units/Acres Interest Completed, or Sold
- -----------------------------------------------------------------------------------------------------------------------------------
Acquisitions:
- -------------
Cherry Hill Mall, Cherry Hill, NJ Square Feet 1,281,482 2Q03
Moorestown Mall, Moorestown, NJ Square Feet 1,055,796 2Q03
The Gallery at Market East, Philadelphia, PA Square Feet 192,440 2Q03
Exton Square Mall, Exton, PA Square Feet 1,088,536 2Q03
-----------------------
SUBTOTAL Square Feet 3,618,254 100% 2Q03
Echelon Mall, Voorhees, NJ Square Feet 1,142,467 2Q03
Plymouth Meeting Mall, Plymouth Meeting, PA Square Feet 813,225 2Q03
-----------------------
SUBTOTAL Square Feet 1,955,692 100% 2Q03
TOTAL ACQUISITIONS Square Feet 5,573,946 100%
Pending Acquisitions:
- ---------------------
New Garden, New Garden, PA Square Feet 394,355 100% 3Q04
-----------------------
TOTAL PENDING ACQUISITIONS Square Feet 394,355
Divestitures (3)
- ----------------
Fox Run Apartments, Bear, DE Units 414 100% 2Q03
Boca Palms Apartments, Boca Raton, FL Units 522 100% 2Q03
Cobblestone Apartments, Pompano Beach, FL Units 384 100% 2Q03
Eagle's Nest Apartments, Coral Spring, FL Units 264 100% 2Q03
Palms of Pembroke, Pembroke Pines, FL Units 348 100% 2Q03
Shenandoah Village Apartments, West Palm Beach, FL Units 220 100% 2Q03
Marylander Apartments, Baltimore, MD Units 507 100% 2Q03
Hidden Lakes Apartments, Dayton, OH Units 360 100% 2Q03
Kenwood Apartments, Toledo, OH Units 504 100% 2Q03
2031 Locust Street, Philadelphia, PA Units 87 100% 2Q03
Camp Hill Plaza Apartments, Camp Hill, PA Units 300 100% 2Q03
Lakewood Hills Apartments, Harrisburg, PA Units 562 100% 2Q03
The Woods, Ambler, PA Units 320 100% 2Q03
-----------------------
SUBTOTAL Units 4,792
Countrywood Apartments, Tampa, FL Units 536 50% 2Q03
Cambridge Hall Apartments, West Chester, PA Units 233 50%
-----------------------
SUBTOTAL Units 769
TOTAL DIVESTITURES Units 5,561
Pending Divestitures: (3)(4)
- ----------------------------
Regency Lakeside Apartments, Omaha, NE Units 433 100% 3Q03
Emerald Point, Virginia Beach, VA Units 862 100% 3Q03
-----------------------
SUBTOTAL Units 1,295
Fox Run Apartments, Warminster, PA Units 196 50% 3Q03
Will-O-Hill Apartments, Reading, PA Units 190 50% 3Q03
-----------------------
SUBTOTAL Units 386
TOTAL PENDING DIVESTITURES Units 1,681
- -----------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- -----------------------------------------------------------------------------------------------------------------------------------
Expected NOI
Total Cost or Price PREIT's Cost or Price Cap (1) Major Tenants
- -----------------------------------------------------------------------------------------------------------------------------------
JC Penney, Macy's, Strawbridge's
Lord & Taylor, Strawbridge's
Strawbridge's, K-Mart
- ------------------
$ 469,000,000
Strawbridge's, Boscov's
Strawbridge's
- ------------------
$ 80,400,000
$ 549,400,000 $ 549,400,000 9.9% (2)
34,761,000 18,821,000 10.6% Home Depot
- ----------------- -------------------
$ 34,761,000 $ 18,821,000
- ------------------
$ 314,000,000
$ 9,100,000
6,700,000
- ------------------
$ 15,800,000
$ 329,800,000
- ------------------
$ 81,400,000
- -----------------------------------------------------------------------------------------------------------------------------------
(1) Expected NOI Cap is defined as PREIT's share of NOI in the year of
stabilization divided by PREIT's share of the investment, except in the case
of partner buyouts, where Expected NOI Cap is defined as incremental NOI
budgeted / PREIT's incremental investment in the property.
(2) PREIT underwrote the acquisition of the six shopping malls to generate an
unlevergaged return of approximately 9.9% on cost based on the first 12
months of anticipated NOI following closing of the transaction (after
deducting an assumed management fee equal to 3% of gross revenue).
(3) The sale price of the multifamily portfolio represents a capitalization rate
of approximately 8.1% based on anticipated NOI less capital expenditure
reserve of $250 per unit during the first 12 months following the closing of
the sale.
(4) The properties were sold in July, 2003
Page 20
Pennsylvania REIT PREIT PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) NYSE
[GRAPHIC OMITTED]
Development Activity
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL
PROPERTY PROJECTED TOTAL
NAME OF PROJECT LOCATION TYPE PROPERTY GLA PROJECTED
(sq ft)(1) COST(1)
- -----------------------------------------------------------------------------------------------------------------------------------
Christiana Power Center (Phase II)(2) Newark, DE Power Center 355,670 $ 35,542,768
New Garden New Garden Twp, PA Power Center 394,355 34,761,000
Pavilion at Market East (3) Philadelphia, PA Land N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Total Development Activity 750,025 $ 70,303,768
- -----------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- -----------------------------------------------------------------------------------------------------------------------------------
PREIT's SHARE
PREIT's SHARE OF EXPECTED CONST DATE OF
OF COST INVESTMENT STABILIZED START INITIAL
TO DATE NOI CAP DATE OCCUPANCY
- -----------------------------------------------------------------------------------------------------------------------------------
$ 35,542,768 $ 4,204,738 9.8% 2Q04 1Q05
18,821,000 1,277,776 10.6% 3Q04 3Q05
N/A 1,506,178 N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
$ 54,363,768 $ 6,988,692 10.1%
- -----------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- -----------------------------------------------------------------------------------------------------------------------------------
STABILIZED
EXPECTED DATE OPERATIONS STATUS % %
OF COMPLETION DATE COMP. LEASED
- -----------------------------------------------------------------------------------------------------------------------------------
2Q05 2Q05 Development 12% 79%
1Q06 1Q06 Development 5% 30%
N/A N/A Construction N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- -----------------------------------------------------------------------------------------------------------------------------------
% PREIT's
OCCUPIED ANCHORS SHARE
- -----------------------------------------------------------------------------------------------------------------------------------
0% Target, Bed Bath & Beyond 100%
0% Home Depot, Supermarket 100%
N/A TBD 50%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
(1) GLA & total project cost include tenants that purchased their respective
land; therefore, the % leased & occupied will also include these tenants.
(2) The Company, through a joint venture partnership, has filed a complaint
against the Delaware Department of Transportation and the Delaware Secretary
of Transportation arising from their prior agreements to take actions
necessary for development of the joint venture's Christiana Phase II Power
Center. The ultimate disposition of this proceeding and the related delay in
the development of this property is not clear at this time.
(3) The Company's original development plans for the Pavilion at Market East are
under review. The Company retains a 50% interest in the project joint
venture, which continues to own the unimproved land.
Redevelopment Activity
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL
PROPERTY PROJECTED TOTAL PREIT's SHARE
NAME OF PROJECT LOCATION TYPE PROPERTY GLA PROJECTED OF COST
(sq ft)(1) COST(1)
- -----------------------------------------------------------------------------------------------------------------------------------
Magnolia Mall Florence, SC Enclosed Mall 579,244 $ 11,529,000 $ 10,873,575
Prince Georges Plaza (3) Hyattsville, MD Enclosed Mall 893,274 24,146,000 17,200,000
Crest Plaza Allentown, PA Strip Center 259,854 16,885,000 11,779,455
- -----------------------------------------------------------------------------------------------------------------------------------
Total Redevelopment Activity $ 1,732,372 $ 52,560,000 $39,853,030
- -----------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- -----------------------------------------------------------------------------------------------------------------------------------
PREIT's SHARE
OF EXPECTED CONST DATE OF EXPECTED DATE STABILIZED
INVESTMENT STABILIZED START INITIAL OF COMPLETION OPERATIONS
TO DATE NOI CAP DATE OCCUPANCY DATE
- -----------------------------------------------------------------------------------------------------------------------------------
$ 6,316,747 11.1% 2Q02 4Q02 3Q04 3Q04
1,405,486 12.0% 2Q03 4Q04 4Q04 4Q05
8,137,744 4.8% 3Q99 1Q03 4Q03 1Q04
- -----------------------------------------------------------------------------------------------------------------------------------
$ 15,859,977 9.6%
- -----------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- -----------------------------------------------------------------------------------------------------------------------------------
STATUS % % % PREIT's
COMP. LEASED OCCUPIED ANCHORS SHARE
- -----------------------------------------------------------------------------------------------------------------------------------
Construction 58% 88% 0% Best Buy, Foodcourt 100%
Construction 8% 65% 0% Target 100%
Redevelopment 69% 92% 28% Eckerds, Applebee's, Target 100%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
(1) GLA & total project cost include tenants that purchased their respective
land; therefore, the % leased & occupied will also include these tenants.
(2) Income producing property, but still under development.
(3) Prince Georges Plaza's % leased is based on the 210,010 sq foot
redevelopment area which was vacant at 12/31/02.
(4) PREIT's share of investment to date includes certain costs that are
reimbursable by the tenant. Both "PREIT's Share of Cost" and "PREIT's Share
of Investment to Date" are estimated to be $6,511,000 upon project
completion.
Page 21
PREIT PEI
LISTED
Pennsylvania REIT NYSE
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003)
[GRAPHIC OMITTED]
Top Twenty Tenants (by PREIT's share of Annualized Base Rent)
Number of GLA of Annualized PREIT's share of Percent of PREIT's Total
Tenant Stores Stores Base Rent Annualized Base Rent(2) Retail Base Rent
- ------------------------------ ------------ -------------- -------------- --------------------------- ------------------------
The Gap, Inc./Old Navy (1) 28 342,775 $7,545,739 $6,066,906 5.53%
The Limited Stores, Inc. (1) 49 320,491 7,129,248 5,369,698 4.89%
Footlocker, Inc. 27 126,208 2,935,472 2,355,983 2.15%
Boscov's 7 1,308,706 3,137,572 2,345,972 2.14%
Dick's Sporting Goods 4 199,694 2,967,688 2,135,594 1.95%
Zales 40 33,079 2,518,703 2,024,066 1.84%
Bed Bath & Beyond 6 203,543 2,681,393 1,816,558 1.66%
Sam Goody/Suncoast 16 57,028 1,817,569 1,653,705 1.51%
JC Penney 9 841,212 1,681,575 1,550,470 1.41%
Circuit City 4 116,730 1,652,592 1,406,335 1.28%
Kay Bee Toys 14 75,685 1,518,335 1,268,808 1.16%
Best Buy 3 137,397 2,096,845 1,220,923 1.11%
Trans World Entertainment 13 57,011 1,576,496 1,194,862 1.09%
American Eagle Outfitters 11 53,202 1,460,212 1,170,099 1.07%
Payless Shoe Source 22 66,286 1,451,096 1,147,559 1.05%
Lenscrafters 11 53,511 1,383,039 1,146,412 1.04%
PetSmart 4 104,755 1,721,271 1,083,724 0.99%
Kay Jewelers 11 16,284 1,390,279 1,046,443 0.95%
Toys R Us 4 132,890 1,389,214 909,345 0.83%
Barnes & Noble/B. Dalton 4 89,933 1,716,570 817,391 0.74%
- -----------------------------------------------------------------------------------------------------------------------------------
Total Top 20 Tenants 287 4,336,420 49,770,909 37,730,854 34.38%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Total Retail Leased 1,670 11,655,444 $101,670,917 $109,738,096(3) 100.00%
- -----------------------------------------------------------------------------------------------------------------------------------
(1) Includes lease(s) in which tenant pays straight percentage rent in lieu of
minimum rent. No annualized rent has been estimated for these leases.
(2) Includes PREIT's proportionate share of tenant rents from joint venture
properties based on PREIT's ownership percentage in the respective joint
venture.
(3) PREIT's share of annualized base rent is derived by annualizing 1st quarter
base rent. Straight line rent is not included in the base rent figures.
Page 22
Pennsylvania REIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO] LISTED
NYSE
Retail Lease Expiration Schedule - Anchors(1)
- ----------------- ------------------- ----------------------------- ------------------------------------------------ ------------
Year Leases Gross Leasable Area Annualized Base Rent
- ----------------- ------------------- ----------------------------- ------------------------------------------------ ------------
Percent of Average
PREIT's Share of Total Expiring
Lease Expiration Number of Leases Percent of Rent in Rent in Expiring (PREIT's Base Rent
Year Expiring Expiring GLA Total Expiring Year Year(3) Share) psf
- ----------------- ------------------- ----------------------------- ------------------------------------------------ ------------
Prior (2) 0 - 0.00% $ - $ - 0.00% $ -
2003 1 20,425 0.38% 224,675 224,675 1.29% 11.00
2004 3 259,942 4.82% 349,140 277,284 1.60% 1.34
2005 1 136,633 2.53% 1,250,000 1,250,000 7.20% 9.15
2006 3 414,992 7.69% 849,731 849,731 4.89% 2.05
2007 4 327,160 6.06% 922,893 912,993 5.26% 2.82
2008 5 625,909 11.60% 1,223,065 781,465 4.50% 1.95
2009 3 206,252 3.82% 1,502,609 979,504 5.64% 7.29
2010 1 202,765 3.76% 725,507 725,507 4.18% 3.58
2011 3 335,585 6.22% 2,305,126 1,152,563 6.63% 6.87
2012 2 241,940 4.48% 350,707 313,826 1.81% 1.45
2013 2 71,634 1.33% 1,073,994 1,073,994 6.18% 14.99
Thereafter 21 2,551,807 47.30% 11,692,118 8,830,361 50.83% 4.58
- ----------------- ------------------- ----------------------------- ------------------------------------------------ ------------
Totals: 49 5,395,044 100% $22,469,564 $17,371,902 100% $ 4.16
- ----------------- ------------------- ----------------------------- ------------------------------------------------ ------------
(1) Includes only Owned Anchor space.
(2) Includes all tenant leases which have already expired and are on a Month to
Month basis.
(3) Includes PREIT's proportionate share of tenant rents from joint venture
properties based on PREIT's ownership percentage in the respective joint
venture.
Page 23
Pennsylvania REIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO] LISTED
NYSE
Retail Lease Expiration Schedule -Non-Anchors(1)
- ----------------- ------------------- ----------------------------- ------------------------------------------------ ------------
Year Leases Gross Leasable Area Annualized Base Rent
- ----------------- ------------------- ----------------------------- ------------------------------------------------ ------------
Percent of Average
PREIT's Share of Total Expiring
Lease Expiration Number of Leases Percent of Rent in Rent in Expiring (PREIT's Base Rent
Year Expiring Expiring GLA Total Expiring Year Year Share) psf
- ----------------- ------------------- ----------------------------- ------------------------------------------------ ------------
Prior (2) 19 29,460 0.47% $ 632,900 $ 456,026 0.38% $21.48
2003 85 170,695 2.73% 4,129,821 3,279,047 2.72% 24.19
2004 186 485,967 7.76% 11,127,176 9,579,473 7.95% 22.90
2005 205 568,754 9.08% 14,403,060 11,924,090 9.89% 25.32
2006 181 700,930 11.20% 16,073,550 13,785,664 11.44% 22.93
2007 176 481,994 7.70% 11,516,955 9,448,671 7.84% 23.89
2008 136 437,210 6.98% 11,519,284 9,894,092 8.21% 26.35
2009 132 399,293 6.38% 11,930,526 10,246,663 8.50% 29.88
2010 177 597,605 9.55% 16,108,861 14,581,154 12.10% 26.96
2011 129 719,723 11.50% 17,109,138 12,170,140 10.10% 23.77
2012 96 465,316 7.43% 12,022,025 9,519,010 7.90% 25.84
2013 51 245,425 3.92% 6,169,253 4,845,644 4.02% 25.14
Thereafter 48 958,028 15.30% 15,752,895 10,821,542 8.98% 16.44
- ----------------- ------------------- ----------------------------- ------------------------------------------------ ------------
Totals: 1621 6,260,400 100% $148,495,445 $120,551,215 100% $23.72
- ----------------- ------------------- ----------------------------- ------------------------------------------------ ------------
(1) Includes only Owned Non-Anchor space.
(2) Includes all tenant leases which have already expired and are on a Month to
Month basis.
(3) Includes PREIT's proportionate share of tenant rents from joint venture
properties based on PREIT's ownership percentage in the respective joint
venture.
Page 24
Pennsylvania REIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO] LISTED
NYSE
Leasing Activity Summary
RETAIL
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL
Average Average Increase/ Annualized Annualized Annualized
Previous New Decrease in Tenant Leasing Cost
Base Rent Base Rent Base Rent Improvements Commissions of Leasing
New Lease Number GLA psf psf psf psf(1) psf(1)(2) psf(1)(2)
- --------- ------ --- --- --- --- ------ --------- ---------
Previously Leased Space:
1st Quarter 5 6,660 $37.76 $42.45 $ 4.69 $ - $ - $ -
2nd Quarter 8 20,062 27.90 31.77 3.87 - -
3rd Quarter - - -
4th Quarter - - -
------------------------------------------------------- ------ ------ ------
Total or Average 13 26,722 $30.36 $34.43 $ 4.07 $ - $ - $ -
======================================================= ====== ====== ======
Previously Vacant Space:
1st Quarter 3 4,774 $ - $43.23 $43.23 $ - $ - $ -
2nd Quarter 10 24,388 - 24.53 24.53 0.50 0.50
3rd Quarter
4th Quarter
------------------------------------------------------- ------ ------ ------
Total or Average 13 29,162 - $27.59 $27.59 $ 0.42 $ - $ 0.42
======================================================= ====== ====== ======
TOTAL
Average Average Increase/ Annualized Annualized Annualized
Previous New Decrease in Tenant Leasing Cost
Base Rent Base Rent Base Rent Improvements Commissions of Leasing
Renewal(3) Number GLA psf psf psf psf(1) psf(1)(2) psf(1)(2)
- ---------- ------ --- --- --- --- ------ --------- ---------
1st Quarter 14 35,368 $22.87 $28.65 $ 5.78 $ - $ - $ -
2nd Quarter 11 35,004 15.02 20.02 5.00 -
3rd Quarter - -
4th Quarter - -
------------------------------------------------------- ------ ------ ------
Total or Average 25 70,372 $18.97 $24.36 $ 5.39 $ - $ - $ -
======================================================= ====== ====== ======
- ------------------------------------------------------------------------------------------------------------------------------------
(1) These leasing costs are presented as annualized costs per square foot and
are spread uniformly over the life of the lease.
(2) External commissions only.
(3) This category includes expansions, relocations and lease extensions.
Page 25
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO Omitted] LISTED
NYSE
Capital Expenditures
Q2 03
(3 months ended June 30, 2003)
---------------------------------------------------
Retail Wholly Owned Joint Ventures Total
- -------------------------------------------------
New development projects $ 698,719 $ 698,719
Redevelopment projects with incremental GLA 2,155,890 2,155,890
and/or Anchor Replacement -
Renovation with no incremental GLA -
Tenant allowances 17,393 27,175 44,568
Operational capital expenditures at properties: -
CAM expenditures 12,174 12,174
Non-CAM expenditures 22,365 18,113 40,478
---------- ------- ----------
Total $2,894,367 $57,462 $2,951,829
--------------------------------------------------
External and internal leasing commission for this period was $259,000
Page 26
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO Omitted] LISTED
NYSE
Enclosed Malls
(Includes Non-Anchor Owned Space)
Q203
-----------------------------------------------------------------
Avg. Avg. % Additional Avg. Occup.
Base Rent Rent Charges Comp. Sales Cost
psf(1) psf(1) psf psf(2) Ratio
-----------------------------------------------------------------
Beaver Valley Mall $ 17.65 $ 0.43 $ 5.34 $ 237 9.88%
Cherry Hill Mall 34.83 0.82 15.86 391 13.17%
Dartmouth Mall 18.72 1.36 7.97 398 7.05%
Echelon Mall 23.19 0.20 11.85 241 14.62%
Exton Square Mall 32.66 0.53 8.50 360 11.58%
The Gallery at Market East 32.17 0.31 5.11 411 9.15%
Laurel Mall 12.90 0.72 6.10 263 7.50%
Lehigh Valley Mall 29.86 0.57 9.71 434 9.25%
Magnolia Mall (3) 24.40 1.37 9.44 309 11.40%
Moorestown Mall 24.11 0.63 12.75 331 11.33%
Palmer Park Mall 20.86 1.30 9.67 329 9.68%
Plymouth Meeting 19.00 0.48 8.29 265 10.48%
Prince Georges Plaza (3) 22.99 1.10 10.55 394 8.79%
Willow Grove Park 37.48 0.41 18.24 413 13.59%
-----------------------------------------------------------------
Enclosed Malls weighted average $26.25 $ 0.62 $ 10.49 $ 343 10.89%
-----------------------------------------------------------------
-----------------------------------------------------------------
Wholly Owned Properties $25.56 $ 0.61 $ 10.05 $ 327 11.08%
Joint Venture Properties $28.05 $ 0.64 $ 11.62 $ 385 10.48%
-----------------------------------------------------------------
PRI-managed $26.57 $ 0.62 $ 10.86 $ 336 11.34%
Non PRI-managed $24.61 $ 0.62 $ 8.60 $ 381 8.88%
-----------------------------------------------------------------
Same Properties/Existing $22.48 $ 0.91 $ 8.54 $ 380 8.41%
New $27.68 $ 0.51 $ 11.22 $ 329 11.97%
Redevelopment Properties $23.47 $ 1.19 $ 10.17 $ 365 9.54%
-----------------------------------------------------------------
% Change
-----------------------------------------------------------------
Avg. Avg. % Additional Avg. Occup.
Base Rent Rent Charges Comp. Sales Cost
psf psf psf psf Ratio
-----------------------------------------------------------------
Beaver Valley Mall -8.7% 55.8% 22.7% -7.4% 0.5%
Cherry Hill Mall N/A N/A N/A N/A N/A
Dartmouth Mall 4.1% -10.3% 3.4% 1.8% 0.1%
Echelon Mall N/A N/A N/A N/A N/A
Exton Square Mall N/A N/A N/A N/A N/A
The Gallery at Market East N/A N/A N/A N/A N/A
Laurel Mall -3.7% 93.5% 17.8% -4.7% 0.6%
Lehigh Valley Mall 9.1% -35.4% 9.7% 1.4% 0.6%
Magnolia Mall (3) 22.2% -23.9% 23.0% 1.6% 1.7%
Moorestown Mall N/A N/A N/A N/A N/A
Palmer Park Mall -2.6% -15.5% 0.0% 0.0% -0.2%
Plymouth Meeting N/A N/A N/A N/A N/A
Prince Georges Plaza (3) 0.1% 22.5% 1.9% -4.1% 0.5%
Willow Grove Park 5.7% -9.4% 11.6% 7.8% -0.1%
-----------------------------------------------------------------
Enclosed Malls weighted average 10.1% -20.3% 18.5% -3.6% 1.5%
-----------------------------------------------------------------
-----------------------------------------------------------------
Wholly Owned Properties 36.5% -27.1% 70.9% 3.0% 3.1%
Joint Venture Properties 4.4% -14.1% 9.6% 1.7% 0.4%
-----------------------------------------------------------------
PRI-managed 10.3% -22.3% 14.7% -0.9% 1.2%
Non PRI-managed 5.2% -16.5% 10.1% -1.0% 0.6%
-----------------------------------------------------------------
Same Properties/Existing 3.7% -12.8% 7.0% 0.0% 0.3%
New 1.8% 39.9% 10.2% 3.6% 0.1%
Redevelopment Properties 7.5% -4.1% 9.0% -1.4% 0.8%
-----------------------------------------------------------------
Q202
-----------------------------------------------------------------
Avg. Avg. % Additional Avg. Occup.
Base Rent Rent Charges Comp. Sales Cost
psf(1) psf(1) psf psf(2) Ratio
-----------------------------------------------------------------
Beaver Valley Mall $ 19.33 $ 0.28 $ 4.36 $ 256 9.36%
Cherry Hill Mall N/A N/A N/A N/A N/A
Dartmouth Mall 17.98 1.52 7.71 391 6.96%
Echelon Mall N/A N/A N/A N/A N/A
Exton Square Mall N/A N/A N/A N/A N/A
The Gallery at Market East N/A N/A N/A N/A N/A
Laurel Mall 13.39 0.37 5.18 276 6.86%
Lehigh Valley Mall 27.36 0.89 8.85 428 8.67%
Magnolia Mall (3) 19.97 1.80 7.67 304 9.69%
Moorestown Mall N/A N/A N/A N/A N/A
Palmer Park Mall 21.43 1.54 9.67 329 9.92%
Plymouth Meeting N/A N/A N/A N/A N/A
Prince Georges Plaza (3) 22.97 0.90 10.35 411 8.33%
Willow Grove Park 35.47 0.45 16.34 383 13.65%
-----------------------------------------------------------------
Enclosed Malls weighted average $ 23.84 $ 0.78 $ 8.85 $ 356 9.41%
-----------------------------------------------------------------
-----------------------------------------------------------------
Wholly Owned Properties $ 18.72 $ 0.84 $ 5.88 $ 317 8.01%
Joint Venture Properties $ 26.86 $ 0.74 $ 10.61 $ 378 10.10%
-----------------------------------------------------------------
PRI-managed $ 24.10 $ 0.80 $ 9.47 $ 339 10.15%
Non PRI-managed $ 23.39 $ 0.74 $ 7.81 $ 385 8.30%
-----------------------------------------------------------------
Same Properties/Existing $ 21.67 $ 1.05 $ 7.99 $ 380 8.07%
New $ 27.18 $ 0.36 $ 10.19 $ 318 11.87%
Redevelopment Properties $ 21.83 $ 1.24 $ 9.33 $ 370 8.75%
-----------------------------------------------------------------
(1) Base rent is actual for Q203. Additional charges and % rent are projections
for 2003.
(2) Average comparable sales for Q202 are actual. Sales for the Joint Venture
Q203 are projected annual comparable sales per square foot.
(3) Magnolia Mall and Prince Georges Plaza are classified as a redevelopment
property and are not included in the weighted average. Occupancy
Q203
-------------------------------------------------------
In-Line
Total Total In-Line (Non-
w/Anchor w/Anchor only (Non- Anchor)
% % Anchor) %
Leased Available % Leased Available
-------------------------------------------------------
Beaver Valley Mall 89.6% 10.4% 77.8% 22.2%
Cherry Hill Mall 93.8% 6.2% 93.8% 6.2%
Dartmouth Mall 79.5% 20.5% 89.2% 10.8%
Echelon Mall 52.3% 47.7% 70.6% 29.4%
Exton Square Mall 96.2% 3.8% 90.8% 9.2%
The Gallery at Market East 93.9% 6.1% 93.9% 6.1%
Laurel Mall 95.9% 4.1% 89.0% 11.0%
Lehigh Valley Mall 91.9% 8.1% 88.2% 11.8%
Magnolia Mall 91.0% 9.0% 76.6% 23.4%
Moorestown Mall 96.0% 4.0% 91.0% 9.0%
Palmer Park Mall 96.6% 3.4% 88.6% 11.4%
Plymouth Meeting 92.4% 7.6% 89.0% 11.0%
Prince Georges Plaza 88.2% 11.8% 91.7% 8.3%
Willow Grove Park 94.5% 5.5% 90.9% 9.1%
-------------------------------------------------------
Enclosed Malls weighted average (1) 87.8% 12.2% 87.1% 12.9%
-------------------------------------------------------
-------------------------------------------------------
Wholly Owned Properties 85.0% 15.0% 86.3% 13.7%
Joint Venture Properties 94.5% 5.5% 89.2% 10.8%
-------------------------------------------------------
PRI-managed 86.6% 13.4% 86.9% 13.1%
Non PRI-managed 93.7% 6.3% 88.5% 11.5%
-------------------------------------------------------
Same Properties/Existing 90.4% 9.6% 88.7% 11.3%
New 86.6% 13.4% 86.5% 13.5%
Redevelopment Properties 89.4% 10.6% 85.9% 14.1%
-------------------------------------------------------
Occupancy
Change in % Occupancy
-------------------------------------------------------
In-Line
Total Total In-Line (Non-
w/Anchor w/Anchor only (Non- Anchor)
% % Anchor) %
Leased Available % Leased Available
-------------------------------------------------------
Beaver Valley Mall 1.66% -1.66% 3.56% -3.56%
Cherry Hill Mall N/A N/A N/A N/A
Dartmouth Mall -11.85% 11.85% 5.72% -5.72%
Echelon Mall N/A N/A N/A N/A
Exton Square Mall N/A N/A N/A N/A
The Gallery at Market East N/A N/A N/A N/A
Laurel Mall 2.2% -2.2% 5.9% -5.9%
Lehigh Valley Mall -3.6% 3.6% -5.2% 5.2%
Magnolia Mall 3.5% -3.5% -14.3% 14.3%
Moorestown Mall N/A N/A N/A N/A
Palmer Park Mall 1.7% -1.7% 5.7% -5.7%
Plymouth Meeting N/A N/A N/A N/A
Prince Georges Plaza -0.6% 0.6% -1.5% 1.5%
Willow Grove Park -1.6% 1.6% -2.7% 2.7%
-------------------------------------------------------
Enclosed Malls weighted average (1) -4.9% 4.9% 1.7% -1.7%
-------------------------------------------------------
-------------------------------------------------------
Wholly Owned Properties -4.3% 4.3% 8.2% -8.2%
Joint Venture Properties -0.6% 0.6% -1.2% 1.2%
-------------------------------------------------------
PRI-managed -5.1% 5.1% 4.1% -4.1%
Non PRI-managed -1.0% 1.0% -1.8% 1.8%
-------------------------------------------------------
Same Properties/Existing -3.4% 3.4% 1.3% -1.3%
New N/A N/A N/A N/A
Redevelopment Properties 1.2% -1.2% -6.4% 6.4%
-------------------------------------------------------
Q202
-------------------------------------------------------
In-Line
Total Total In-Line (Non-
w/Anchor w/Anchor only (Non- Anchor)
% % Anchor) %
Leased Available % Leased Available
-------------------------------------------------------
Beaver Valley Mall 88.0% 12.0% 74.2% 25.8%
Cherry Hill Mall N/A N/A N/A N/A
Dartmouth Mall 91.3% 8.7% 83.5% 16.5%
Echelon Mall N/A N/A N/A N/A
Exton Square Mall N/A N/A N/A N/A
The Gallery at Market East N/A N/A N/A N/A
Laurel Mall 93.7% 6.3% 83.1% 16.9%
Lehigh Valley Mall 95.5% 4.5% 93.5% 6.5%
Magnolia Mall 87.4% 12.6% 90.9% 9.1%
Moorestown Mall N/A N/A N/A N/A
Palmer Park Mall 94.9% 5.1% 82.9% 17.1%
Plymouth Meeting N/A N/A N/A N/A
Prince Georges Plaza 88.8% 11.2% 93.2% 6.8%
Willow Grove Park 96.1% 3.9% 93.5% 6.5%
-------------------------------------------------------
Enclosed Malls weighted average (1) 92.7% 7.3% 85.4% 14.6%
-------------------------------------------------------
-------------------------------------------------------
Wholly Owned Properties 89.3% 10.7% 78.2% 21.8%
Joint Venture Properties 95.1% 4.9% 90.4% 9.6%
-------------------------------------------------------
PRI-managed 91.7% 8.3% 82.8% 17.2%
Non PRI-managed 94.7% 5.3% 90.3% 9.7%
-------------------------------------------------------
Same Properties/Existing 93.8% 6.2% 87.4% 12.6%
New N/A N/A N/A N/A
Redevelopment Properties 88.2% 11.8% 92.3% 7.7%
-------------------------------------------------------
(1) Magnolia Mall and Prince Georges Plaza are classified as a redevelopment
property and are not included in the weighted average.
Page 27
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO Omitted] LISTED
NYSE
Power Centers
(Includes Non-Anchor Owned Space)
Q203 % Change Q202
------------------------------- ----------------------------- -------------------------------
Avg. Avg. Avg.
Base Avg. % Additional Base Avg. % Additional Base Avg. % Additional
Rent Rent Charges Rent Rent Charges Rent Rent Charges
psf(1) psf(1) psf psf psf psf psf(1) psf(1) psf
------------------------------- ----------------------------- -------------------------------
Christiana Power Center $19.37 $0.02 $1.84 0.0% -89.2% 12.1% $19.37 $0.22 $1.64
Creekview Shopping Center 14.31 - 2.74 6.4% N/A 21.2% 13.44 - 2.26
Northeast Tower Center 13.48 - 3.11 0.3% N/A 0.6% 13.44 - 3.09
Paxton Towne Center 15.93 - 2.64 1.8% N/A 60.0% 15.65 - 1.65
The Court at Oxford Valley 15.14 0.03 3.77 -0.9% N/A 1.7% 15.28 - 3.70
Red Rose Commons 13.22 0.02 2.89 0.0% -35.2% -2.8% 13.22 0.03 2.97
Whitehall Mall 10.60 0.27 3.07 -2.3% 1.4% 11.1% 10.86 0.26 2.76
Metroplex Shopping Center 18.13 - 3.45 0.0% N/A 1.1% 18.13 - 3.41
------------------------------- ----------------------------- -------------------------------
Power Centers weighted average $15.12 $0.04 $3.08 0.0% -17.1% 7.4% $15.11 $0.05 $2.87
------------------------------- ----------------------------- -------------------------------
------------------------------- ----------------------------- -------------------------------
Wholly Owned Properties $15.51 $0.00 $2.65 1.0% -89.5% 22.5% $15.36 $0.04 $2.17
Joint Venture Properties $14.88 $0.06 $3.32 -0.5% 10.8% 2.0% $14.96 $0.06 $3.26
------------------------------- ----------------------------- -------------------------------
PRI-managed $15.51 $0.00 $2.65 1.0% -89.5% 22.5% $15.36 $0.04 $2.17
Non PRI-managed $14.88 $0.06 $3.32 -0.5% 10.8% 2.0% $14.96 $0.06 $3.26
------------------------------- ----------------------------- -------------------------------
Same Properties/Existing $15.12 $0.04 $3.08 0.0% -17.1% 7.4% $15.11 $0.05 $2.87
New $ - $ - $ - N/A N/A N/A $ - $ - $ -
Redevelopment Properties $ - $ - $ - N/A N/A N/A $ - $ - $ -
------------------------------- ----------------------------- -------------------------------
(1) Base rent is actual for Q203. Additional charges and % rent are projections
for 2003.
Q203
-------------------------------------------------------
In-Line
Total Total In-Line (Non-
w/Anchor w/Anchor only (Non- Anchor)
% % Anchor) %
Leased Available % Leased Available
-------------------------------------------------------
Christiana Power Center 100.0% 0.0% 100.0% 0.0%
Creekview Shopping Center 100.0% 0.0% 100.0% 0.0%
Northeast Tower Center 100.0% 0.0% 100.0% 0.0%
Paxton Towne Center 90.7% 9.3% 85.9% 14.1%
The Court at Oxford Valley 97.1% 2.9% 95.3% 4.7%
Red Rose Commons 99.2% 0.8% 99.2% 0.8%
Whitehall Mall 97.6% 2.4% 94.7% 5.3%
Metroplex Shopping Center 100.0% 0.0% 100.0% 0.0%
-------------------------------------------------------
Power Centers weighted average 97.7% 2.3% 96.4% 3.6%
-------------------------------------------------------
-------------------------------------------------------
Wholly Owned Properties 96.9% 3.1% 94.3% 5.7%
Joint Venture Properties 98.4% 1.6% 97.6% 2.4%
-------------------------------------------------------
PRI-managed 96.9% 3.1% 94.3% 5.7%
Non PRI-managed 98.4% 1.6% 97.6% 2.4%
-------------------------------------------------------
Same Properties/Existing 97.7% 2.3% 96.4% 3.6%
New N/A N/A N/A N/A
Redevelopment Properties N/A N/A N/A N/A
-------------------------------------------------------
Occupancy
Change in % Occupancy
-------------------------------------------------------
In-Line
Total Total In-Line (Non-
w/Anchor w/Anchor only (Non- Anchor)
% % Anchor) %
Leased Available % Leased Available
-------------------------------------------------------
Christiana Power Center 0.0% 0.0% 0.0% 0.0%
Creekview Shopping Center 0.0% 0.0% 0.0% 0.0%
Northeast Tower Center 0.0% 0.0% 0.0% 0.0%
Paxton Towne Center 3.1% -3.1% 4.7% -4.7%
The Court at Oxford Valley -2.1% 2.1% -3.9% 3.9%
Red Rose Commons -0.8% 0.8% -0.8% 0.8%
Whitehall Mall -0.2% 0.2% -0.4% 0.4%
Metroplex Shopping Center 0.0% 0.0% 0.0% 0.0%
-------------------------------------------------------
Power Centers weighted average 0.1% -0.1% 0.0% 0.0%
-------------------------------------------------------
-------------------------------------------------------
Wholly Owned Properties 1.4% -1.4% 1.9% -1.9%
Joint Venture Properties -0.8% 0.8% -1.2% 1.2%
-------------------------------------------------------
PRI-managed 1.4% -1.4% 1.9% -1.9%
Non PRI-managed -0.8% 0.8% -1.2% 1.2%
-------------------------------------------------------
Same Properties/Existing 0.1% -0.1% 0.0% 0.0%
New N/A N/A N/A N/A
Redevelopment Properties N/A N/A N/A N/A
-------------------------------------------------------
Q202
-------------------------------------------------------
In-Line
Total Total In-Line (Non-
w/Anchor w/Anchor only (Non- Anchor)
% % Anchor) %
Leased Available % Leased Available
-------------------------------------------------------
Christiana Power Center 100.0% 0.0% 100.0% 0.0%
Creekview Shopping Center 100.0% 0.0% 100.0% 0.0%
Northeast Tower Center 100.0% 0.0% 100.0% 0.0%
Paxton Towne Center 87.6% 12.4% 81.2% 18.8%
The Court at Oxford Valley 99.2% 0.8% 99.2% 0.8%
Red Rose Commons 100.0% 0.0% 100.0% 0.0%
Whitehall Mall 97.8% 2.2% 95.1% 4.9%
Metroplex Shopping Center 100.0% 0.0% 100.0% 0.0%
-------------------------------------------------------
Power Centers weighted average 97.7% 2.3% 96.4% 3.6%
-------------------------------------------------------
-------------------------------------------------------
Wholly Owned Properties 95.4% 4.6% 92.4% 7.6%
Joint Venture Properties 99.2% 0.8% 98.8% 1.2%
-------------------------------------------------------
PRI-managed 95.4% 4.6% 92.4% 7.6%
Non PRI-managed 99.2% 0.8% 98.8% 1.2%
-------------------------------------------------------
Same Properties/Existing 97.7% 2.3% 96.4% 3.6%
New N/A N/A N/A N/A
Redevelopment Properties N/A N/A N/A N/A
-------------------------------------------------------
Page 28
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO Omitted] LISTED
NYSE
Strip Centers
(Includes Non-Anchor Owned Space)
Q203 % Change Q202
------------------------------- ----------------------------- -------------------------------
Avg. Avg. Avg.
Base Avg. % Additional Base Avg. % Additional Base Avg. % Additional
Rent Rent Charges Rent Rent Charges Rent Rent Charges
psf(1) psf(1) psf psf psf psf psf(1) psf(1) psf
------------------------------- ----------------------------- -------------------------------
Crest Plaza Shopping Center $15.21 $ - $3.44 13.1% -100.0% 216.0% $13.45 $0.84 $1.09
Festival at Exton 16.55 - 3.91 -0.4% N/A 33.5% 16.61 - 2.93
The Commons at Magnolia 12.81 0.03 1.50 11.9% -65.7% -24.6% 11.45 0.10 1.99
Rio Mall 5.89 - 0.25 -3.7% N/A -23.0% 6.11 - 0.32
South Blanding Village 8.90 - 2.61 5.0% N/A 32.6% 8.48 - 1.97
Springfield Park I & II 17.64 - 6.38 13.5% -100.0% 23.5% 15.53 0.12 5.17
------------------------------- ----------------------------- -------------------------------
Strip Centers weighted
average (2) $13.40 $0.01 $3.05 0.3% -82.5% 3.3% $13.36 $0.04 $2.96
------------------------------- ----------------------------- -------------------------------
Wholly Owned Properties $13.91 $0.01 $2.90 2.0% -50.4% 15.6% $13.65 $0.02 $2.51
Joint Venture Properties $12.05 $ - $3.46 -6.1% -100.0% -8.4% $12.83 $0.08 $3.78
------------------------------- ----------------------------- -------------------------------
PRI-managed $14.54 $0.01 $3.48 2.6% -81.9% 7.0% $14.18 $0.05 $3.25
Non PRI-managed $ 5.89 $ - $0.25 -3.7% N/A -23.0% $ 6.11 $ - $0.32
------------------------------- ----------------------------- -------------------------------
Same Properties/Existing $13.57 $ - $3.52 -0.7% -100.0% 12.9% $13.68 $0.03 $3.12
New $12.81 $0.03 $1.50 11.9% -65.7% -24.6% $11.45 $0.10 $1.99
Redevelopment Properties $15.21 $ - $3.44 13.1% -100.0% 216.0% $13.45 $0.84 $1.09
------------------------------- ----------------------------- -------------------------------
(1) Base rent is actual for Q203. Additional charges and % rent are projections
for 2003.
(2) Crest Plaza is classified as Redevelopment Properties and is not included in
the weighted average.
Q203
-------------------------------------------------------
In-Line
Total Total In-Line (Non-
w/Anchor w/Anchor only (Non- Anchor)
% % Anchor) %
Leased Available % Leased Available
-------------------------------------------------------
Crest Plaza Shopping Center 84.7% 15.3% 73.5% 26.5%
Festival at Exton 95.5% 4.5% 92.3% 7.7%
The Commons at Magnolia 97.6% 2.4% 95.3% 4.7%
Rio Mall 99.6% 0.4% 97.8% 2.2%
South Blanding Village 97.4% 2.6% 91.4% 8.6%
Springfield Park I & II 90.9% 9.1% 73.5% 26.5%
-------------------------------------------------------
Strip Centers weighted average (1) 96.3% 3.7% 90.2% 9.8%
-------------------------------------------------------
-------------------------------------------------------
Wholly Owned Properties 96.7% 3.3% 93.1% 6.9%
Joint Venture Properties 95.8% 4.2% 83.3% 16.7%
-------------------------------------------------------
PRI-managed 95.2% 4.8% 89.1% 10.9%
Non PRI-managed 99.6% 0.4% 97.8% 2.2%
-------------------------------------------------------
Same Properties/Existing 96.1% 3.9% 88.7% 11.3%
New 97.6% 2.4% 95.3% 4.7%
Redevelopment Properties 84.7% 15.3% 73.5% 26.5%
-------------------------------------------------------
Occupancy
Change in % Occupancy
-------------------------------------------------------
In-Line
Total Total In-Line (Non-
w/Anchor w/Anchor only (Non- Anchor)
% % Anchor) %
Leased Available % Leased Available
-------------------------------------------------------
Crest Plaza Shopping Center 36.0% -36.0% 38.8% -38.8%
Festival at Exton -2.0% 2.0% -3.4% 3.4%
The Commons at Magnolia 36.4% -36.4% 31.5% -31.5%
Rio Mall 0.0% 0.0% 0.6% -0.6%
South Blanding Village -1.7% 1.7% -5.5% 5.5%
Springfield Park I & II 0.2% -0.2% -9.6% 9.6%
-------------------------------------------------------
Strip Centers weighted average (1) 5.1% -5.1% 3.7% -3.7%
-------------------------------------------------------
-------------------------------------------------------
Wholly Owned Properties 9.1% -9.1% 6.6% -6.6%
Joint Venture Properties 0.1% -0.1% -3.3% 3.3%
-------------------------------------------------------
PRI-managed 6.7% -6.7% 3.6% -3.6%
Non PRI-managed 0.0% 0.0% 0.6% -0.6%
-------------------------------------------------------
Same Properties/Existing -0.8% 0.8% -3.2% 3.2%
New 36.4% -36.4% 31.5% -31.5%
Redevelopment Properties 36.0% -36.0% 38.8% -38.8%
-------------------------------------------------------
Q202
-------------------------------------------------------
In-Line
Total Total In-Line (Non-
w/Anchor w/Anchor only (Non- Anchor)
% % Anchor) %
Leased Available % Leased Available
-------------------------------------------------------
Crest Plaza Shopping Center 48.8% 51.2% 34.7% 65.3%
Festival at Exton 97.5% 2.5% 95.7% 4.3%
The Commons at Magnolia 61.2% 38.8% 63.8% 36.2%
Rio Mall 99.6% 0.4% 97.1% 2.9%
South Blanding Village 99.1% 0.9% 97.0% 3.0%
Springfield Park I & II 90.8% 9.2% 83.0% 17.0%
-------------------------------------------------------
Strip Centers weighted average (1) 91.2% 8.8% 86.5% 13.5%
-------------------------------------------------------
-------------------------------------------------------
Wholly Owned Properties 87.6% 12.4% 86.4% 13.6%
Joint Venture Properties 95.7% 4.3% 86.6% 13.4%
-------------------------------------------------------
PRI-managed 88.4% 11.6% 85.4% 14.6%
Non PRI-managed 99.6% 0.4% 97.1% 2.9%
-------------------------------------------------------
Same Properties/Existing 96.9% 3.1% 91.9% 8.1%
New 61.2% 38.8% 63.8% 36.2%
Redevelopment Properties 48.8% 51.2% 34.7% 65.3%
-------------------------------------------------------
(1) Crest Plaza is classified as Redevelopment Properties and is not included in
the weighted average.
Page 29
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO Omitted] LISTED
NYSE
Retail Portfolio
(Includes Non-Anchor Owned Space)
Q203 % Change Q202
------------------------------- ----------------------------- -------------------------------
Avg. Avg. Avg.
Base Avg. % Additional Base Avg. % Additional Base Avg. % Additional
Rent Rent Charges Rent Rent Charges Rent Rent Charges
psf(1) psf(1) psf(1) psf(1) psf(1) psf(1) psf(1) psf(1) psf(1)
------------------------------- ----------------------------- -------------------------------
Retail Portfolio weighted
average (2) $22.17 $0.41 $ 7.81 17.4% 10.2% 41.4% 18.88 0.37 5.53
------------------------------- ----------------------------- -------------------------------
------------------------------- ----------------------------- -------------------------------
Wholly Owned Properties (2) $23.05 $0.47 $ 8.27 38.6% 22.3% 117.8% $16.63 $0.38 $3.80
Joint Venture Properties $20.80 $0.32 $ 7.10 2.6% -12.1% 7.7% $20.26 $0.37 $6.60
------------------------------- ----------------------------- -------------------------------
PRI-managed (2) $24.07 $0.48 $ 9.08 20.3% 6.7% 45.0% $20.00 $0.45 $6.26
Non PRI-managed $17.98 $0.25 $ 5.03 1.6% -13.7% 5.8% $17.69 $0.29 $4.76
------------------------------- ----------------------------- -------------------------------
Same Properties/Existing $17.48 $0.33 $ 4.92 1.7% -12.8% 7.7% $17.18 $0.38 $4.57
New $27.40 $0.50 $11.04 3.6% 42.3% 12.5% $26.46 $0.35 $9.81
Redevelopment Properties (2) $22.77 $1.09 $ 9.60 6.6% -10.6% 8.3% $21.35 $1.22 $8.86
------------------------------- ----------------------------- -------------------------------
(1) Base rent is actual for Q203. Additional charges and % rent are projections
for 2003.
(2) Crest Plaza, Magnolia Mall and Prince Georges Plaza are classified as
Redevelopment Properties and are not included in the weighted average.
Q203
-------------------------------------------------------
In-Line
Total Total In-Line (Non-
w/Anchor w/Anchor only (Non- Anchor)
% % Anchor) %
Leased Available % Leased Available
-------------------------------------------------------
Retail Portfolio weighted average (1) 90.9% 9.1% 90.0% 10.0%
-------------------------------------------------------
-------------------------------------------------------
Wholly Owned Properties (1) 87.8% 12.2% 88.1% 11.9%
Joint Venture Properties 96.2% 3.8% 93.2% 6.8%
-------------------------------------------------------
PRI-managed (1) 88.8% 11.2% 88.2% 11.8%
Non PRI-managed 96.6% 3.4% 94.4% 5.6%
-------------------------------------------------------
Same Properties/Existing 94.7% 5.3% 93.2% 6.8%
New 86.8% 13.2% 86.7% 13.3%
Redevelopment Properties (1) 89.0% 11.0% 84.7% 15.3%
-------------------------------------------------------
Occupancy
Change in % Occupancy
-------------------------------------------------------
In-Line
Total Total In-Line (Non-
w/Anchor w/Anchor only (Non- Anchor)
% % Anchor) %
Leased Available % Leased Available
-------------------------------------------------------
Retail Portfolio weighted average (1) -3.6% 3.6% -0.6% 0.6%
-------------------------------------------------------
-------------------------------------------------------
Wholly Owned Properties (1) -3.7% 3.7% 2.9% -2.9%
Joint Venture Properties -0.6% 0.6% -1.2% 1.2%
-------------------------------------------------------
PRI-managed (1) -3.7% 3.7% 1.9% -1.9%
Non PRI-managed -0.8% 0.8% -1.4% 1.4%
-------------------------------------------------------
Same Properties/Existing -1.3% 1.3% 0.3% -0.3%
New -2.3% 2.3% 5.3% -5.3%
Redevelopment Properties (1) 5.0% -5.0% 0.3% -0.3%
-------------------------------------------------------
Q202
-------------------------------------------------------
In-Line
Total Total In-Line (Non-
w/Anchor w/Anchor only (Non- Anchor)
% % Anchor) %
Leased Available % Leased Available
-------------------------------------------------------
Retail Portfolio weighted average (1) 94.5% 5.5% 90.6% 9.4%
-------------------------------------------------------
-------------------------------------------------------
Wholly Owned Properties (1) 91.5% 8.5% 85.1% 14.9%
Joint Venture Properties 96.8% 3.2% 94.4% 5.6%
-------------------------------------------------------
PRI-managed (1) 92.4% 7.6% 86.2% 13.8%
Non PRI-managed 97.4% 2.6% 95.8% 4.2%
-------------------------------------------------------
Same Properties/Existing 96.0% 4.0% 93.0% 7.0%
New 89.1% 10.9% 81.4% 18.6%
Redevelopment Properties (1) 84.1% 15.9% 84.4% 15.6%
-------------------------------------------------------
(1) Crest Plaza, Magnolia Mall and Prince Georges Plaza are classified as
Redevelopment Properties and are not included in the weighted average.
Page 30
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO OMITTED] LISTED
NYSE
PREIT Services, LLC/ PREIT-RUBIN Inc.
PREIT Services, LLC and PREIT-RUBIN Inc. are the Trust's arms for comprehensive
development and management of retail, multifamily and commercial properties.
PREIT-RUBIN Inc. provides third party management for 18 properties representing
about 5.2 million gross leasable square feet. PREIT-RUBIN Inc. also provides
third party owners with a full complement of management, leasing, asset
management and development services.
SUMMARY OF PORTFOLIO SERVICES
------------------------------------------------------------------------------------------
June 30, 2003
Retail Multifamily Office/ Industrial TOTAL
------------------------------------------------------------------------------------------
# sq ft # sq ft # sq ft # sq ft
------------------------------------------------------------------------------------------
Managed Portfolio
PREIT-Owned (1) 21 13,245,258 2 1,338,000 4 254,791 27 14,838,049
Non-PREIT Owned (2) 13 4,175,311 1 56,250 4 927,335 18 5,158,896
------------------------------------------------------------------------------------------
TOTAL 34 17,420,569 3 1,394,250 8 1,182,126 45 19,996,945
------------------------------------------------------------------------------------------
Leased Portfolio
PREIT-Owned - -
Non-PREIT Owned 2 1,099,960 - - 1 119,482 3 1,219,442
------------------------------------------------------------------------------------------
TOTAL 2 1,099,960 - - 1 119,482 3 1,219,442
------------------------------------------------------------------------------------------
Asset Managed Portfolio
PREIT-Owned (3) 7 4,254,976 2 384,000 - - 9 4,638,976
Non-PREIT Owned - - - - - - - -
------------------------------------------------------------------------------------------
TOTAL 7 4,254,976 2 384,000 - - 9 4,638,976
------------------------------------------------------------------------------------------
Total Portfolio
PREIT-Owned 28 17,500,234 4 1,722,000 4 254,791 36 19,477,025
Non-PREIT Owned 15 5,275,271 1 56,250 5 1,046,817 21 6,378,338
------------------------------------------------------------------------------------------
TOTAL 43 22,775,505 5 1,778,250 9 1,301,608 57 25,855,363
------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
March 31, 2003
Retail Multifamily Office/ Industrial TOTAL
---------------------------------------------------------------------------------------
# sq ft # sq ft # sq ft # sq ft
---------------------------------------------------------------------------------------
Managed Portfolio
PREIT-Owned (1) 15 7,665,859 15 5,549,784 4 254,791 34 13,470,434
Non-PREIT Owned (2) 14 5,279,169 2 123,750 4 927,335 20 6,330,254
---------------------------------------------------------------------------------------
TOTAL 29 12,945,028 17 5,673,534 8 1,182,126 54 19,800,688
---------------------------------------------------------------------------------------
Leased Portfolio
PREIT-Owned - - - - - - - -
Non-PREIT Owned 2 1,099,960 - - 1 119,482 3 1,219,442
---------------------------------------------------------------------------------------
TOTAL 2 1,099,960 - - 1 119,482 3 1,219,442
---------------------------------------------------------------------------------------
Asset Managed Portfolio
PREIT-Owned (3) 7 4,254,758 4 1,171,000 - - 11 5,425,758
Non-PREIT Owned - - - - - - - -
---------------------------------------------------------------------------------------
TOTAL 7 4,254,758 4 1,171,000 - - 11 5,425,758
---------------------------------------------------------------------------------------
Total Portfolio
PREIT-Owned 22 11,920,617 19 6,720,784 4 254,791 45 18,896,192
Non-PREIT Owned 16 6,379,129 2 123,750 5 1,046,817 23 7,549,696
---------------------------------------------------------------------------------------
TOTAL 38 18,299,746 21 6,844,534 9 1,301,608 68 26,445,888
---------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
NET GAIN (LOSS) IN CONTRACTS
Retail Multifamily Office/ Industrial TOTAL
----------------------------------------------------------------------------------------------
# sq ft # sq ft # sq ft # sq ft
----------------------------------------------------------------------------------------------
Managed Portfolio
PREIT-Owned (1) 6 5,579,399 (13) (4,211,784) - - (7) 1,367,615
Non-PREIT Owned (2) (1) (1,103,858) (1) (67,500) - - (2) (1,171,358)
----------------------------------------------------------------------------------------------
TOTAL 5 4,475,541 (14) (4,279,284) - - (9) 196,257
----------------------------------------------------------------------------------------------
Leased Portfolio
PREIT-Owned - - - - - - - -
Non-PREIT Owned - - - - - - - -
----------------------------------------------------------------------------------------------
TOTAL - - - - - - - -
----------------------------------------------------------------------------------------------
Asset Managed Portfolio
PREIT-Owned (3) - 218 (2) (787,000) - - (2) (786,782)
Non-PREIT Owned - - - - - - - -
----------------------------------------------------------------------------------------------
TOTAL - 218 (2) (787,000) - - (2) (786,782)
----------------------------------------------------------------------------------------------
Total Portfolio
PREIT-Owned 6 5,579,617 (15) (4,998,784) - - (9) 580,833
Non-PREIT Owned (1) (1,103,858) (1) (67,500) - - (2) (1,171,358)
----------------------------------------------------------------------------------------------
TOTAL 5 4,475,759 (16) (5,066,284) - - (11) (590,525)
----------------------------------------------------------------------------------------------
(1) The decrease in PREIT-Owned is a net result of the acquisition of six
shopping malls from the Rouse Company and the sale of PREIT 13 wholly-owned
multifamily properties.
(2) The reduction in Non-PREIT owned GLA resulted primarily from the sale of
Christiana Mall.
(3) The reduction in PREIT owned GLA resulted from the sale of two joint
venture multifamily properties.
Page 31
Pennsylvania REIT PREIT PEI
[LOGO OMITTED] LISTED
FLASH REPORT (June 30, 2003) NYSE
- ----------------------------
Financial Statement
- -----------------------------------------------------------------------------------------------------------------------------------
Q2 03
(3 months ended 6/30/03)
- -----------------------------------------------------------------------------------------------------------------------------------
Corporate/
Retail Multifamily Other Properties TOTAL % Change
- -----------------------------------------------------------------------------------------------------------------------------------
Real Estate Revenues:
Same Store $15,235,858 $ 0 $ 83,421 $ 15,319,279 0.8%
New 20,312,837 - - 20,312,837 N/A
Redevelopment 5,288,178 - - 5,288,178 N/A
Discontinued Operations - 10,640,834 - 10,640,834
- -----------------------------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 40,836,873 10,640,834 83,421 51,561,128 92.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Operating Expenses:
Same Store 3,912,924 - 4,695 3,917,619 11.4%
New 8,156,228 - - 8,156,228 N/A
Redevelopment 1,808,233 - - 1,808,233 N/A
Discontinued Operations - 5,263,362 5,263,362 -10.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 13,877,385 5,263,362 4,695 19,145,442 45.1%
- -----------------------------------------------------------------------------------------------------------------------------------
NOI:
Same Store 11,322,934 - 78,726 11,401,660 -2.3%
New 12,156,609 - - 12,156,609 N/A
Redevelopment 3,479,945 - - 3,479,945 N/A
Discontinued Operations - 5,377,472 - 5,377,472 -35.2%
- -----------------------------------------------------------------------------------------------------------------------------------
NOI (2) 26,959,488 5,377,472 78,726 32,415,686 16.8%
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue - - 3,791,550 3,791,550 76.2%
Interest Income - - 193,127 193,127 -45.6%
General & Administrative
Corporate Payroll - - (3,948,117) (3,948,117) 11.7%
Other G&A Expenses - - (3,569,291) (3,569,291) 36.7%
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 26,959,488 5,377,472 (3,454,005) 28,882,955 19.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Interest Expense (12,088,601) (1,886,514) - (13,975,115) 20.8%
Depreciation and Amortization (8,306,203) - (12,915) (8,319,118) 8.3%
Gain(loss) on Sale of Interests in RE (79,800) 4,401,603 4,321,803 N/A
DISCONTINUED OPERATIONS
Income from Disposed Real Estate - - - - N/A
Minority Interest of O.P. Unitholders - - (15,649,831) (15,649,831) N/A
Gain(loss) on Disposition of Discontinued Operations 150,200,805 - 150,200,805 N/A
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - 150,200,805 (15,649,831) 134,550,974 N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Extraordinary item(Loss on early extinguishment of debt) - - - - N/A
Minority Interest of O.P. Unit Holders - - (823,758) (823,758) 168.6%
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCOME 6,484,884 158,093,366 (19,940,509) 144,637,741 3156.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate 79,800 (154,602,408) - (154,522,608) N/A
Depreciation and Amor. of Real Estate 8,306,203 - 12,915 8,319,118 8.3%
FFO Adjustments - - 16,408,589 16,408,589 2863.5%
- -----------------------------------------------------------------------------------------------------------------------------------
FFO 14,870,887 3,490,958 (3,519,005) 14,842,840 17.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents (612,136) - - (612,136) 168.6%
Recurring Capital Expenditures (86,078) (675,455) - (761,533) -13.6%
Amortization of Debt Premium (1,117,767) (1,117,767)
- -----------------------------------------------------------------------------------------------------------------------------------
FAD $13,054,906 $2,815,503 (3,519,005) $12,351,404 6.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends $ 9,352,573 1.7%
Share Price (at close) $29.95 10.5%
Weighted Average Number of Shares 16,615,576 2.5%
WA number of Shares and O.P. Units 18,614,284 3.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Net Income/Share $8.70 3078.0%
FFO/Share and O.P. Units $0.80 13.4%
FAD/Share and O.P. Units $0.66 3.4%
Dividend/Share and O.P. Units $0.51 0.0%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Q2 02
(3 months ended 6/30/02)
- -----------------------------------------------------------------------------------------------------------------------
Corporate/
Retail Multifamily Other Properties TOTAL
- -----------------------------------------------------------------------------------------------------------------------
Real Estate Revenues:
Same Store $15,111,472 $ 0 $ 81,581 $ 15,193,053
New 6,316,968 - - 6,316,968
Redevelopment 5,293,645 - - 5,293,645
Discontinued Operations - 14,152,792 - 14,152,792
- -----------------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 26,722,085 14,152,792 81,581 26,803,666
- -----------------------------------------------------------------------------------------------------------------------
Operating Expenses:
Same Store 3,511,181 - 5,980 3,517,161
New 2,143,643 - - 2,143,643
Redevelopment 1,682,567 - - 1,682,567
Discontinued Operations - 5,852,269 5,852,269
- -----------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 7,337,391 5,852,269 5,980 13,195,640
- -----------------------------------------------------------------------------------------------------------------------
NOI:
Same Store 11,600,291 - 75,601 11,675,892
New 4,173,325 - - 4,173,325
Redevelopment 3,611,078 - - 3,611,078
Discontinued Operations - 8,300,523 8,300,523
- -----------------------------------------------------------------------------------------------------------------------
NOI (2) 19,384,694 8,300,523 75,601 27,760,818
- -----------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue - - 2,151,596 2,151,596
Interest Income - - 354,849 354,849
General & Administrative
Corporate Payroll - - (3,535,982) (3,535,982)
Other G&A Expenses - - (2,611,050) (2,611,050)
- -----------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 19,384,694 8,300,523 (3,564,986) 24,120,231
- -----------------------------------------------------------------------------------------------------------------------
Interest Expense (8,030,891) (3,550,577) 10,757 (11,570,711)
Depreciation and Amortization (5,370,284) (2,297,580) (12,915) (7,680,779)
Gain(loss) on Sale of Interests in RE - - - -
DISCONTINUED OPERATIONS
Income from Disposed Real Estate 70,839 - - 70,839
Minority Interest of O.P. Unitholders - - (191,297) (191,297)
Gain(loss) on Disposition of Discontinued Operations - - - -
- -----------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS 70,839 - (191,297) (120,458)
- -----------------------------------------------------------------------------------------------------------------------
Extraordinary item(Loss on early extinguishment of debt) - - -
Minority Interest of O.P. Unit Holders - - (306,655) (306,655)
- -----------------------------------------------------------------------------------------------------------------------
NET INCOME 6,054,358 2,452,366 (4,065,096) 4,441,628
- -----------------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate - - - -
Depreciation and Amor. of Real Estate 5,370,284 2,297,580 12,915 7,680,779
FFO Adjustments - - 553,687 553,687
- -----------------------------------------------------------------------------------------------------------------------
FFO 11,424,642 4,749,946 (3,498,494) 12,676,094
- -----------------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents (227,941) - - (227,941)
Recurring Capital Expenditures (39,433) (842,329) - (881,762)
Amortization of Debt Premium - - - -
- -----------------------------------------------------------------------------------------------------------------------
FAD $11,157,268 $3,907,617 ($3,498,494) $11,566,391
- -----------------------------------------------------------------------------------------------------------------------
Dividends $ 9,200,226
Share Price (at close) $27.11
Weighted Average Number of Shares 16,215,645
WA number of Shares and O.P. Units 18,024,071
- -----------------------------------------------------------------------------------------------------------------------
Net Income/Share $0.27
FFO/Share and O.P. Units $0.70
FAD/Share and O.P. Units $0.64
Dividend/Share and O.P. Units $0.51
- -----------------------------------------------------------------------------------------------------------------------
Balance Sheet
- -----------------------------------------------------------------------------------------------------------------------------------
Q2 03
- -----------------------------------------------------------------------------------------------------------------------------------
Corporate/
Retail Multifamily Other Properties Total % Change
- -----------------------------------------------------------------------------------------------------------------------------------
Investment in Real Estate, at cost $1,151,324,700 $72,410,503 $ 15,664,644 $1,239,399,847 32.3%
Accumulated Depreciation (86,614,873) (21,379,445) (2,051,443) (110,045,761) -34.1%
Investment in and advances to Partnership and JVs - - 1,123,207 1,123,207 213.5%
Other Assets 102,071,918 2,620,458 31,954,627 136,647,003 59.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Total Assets $1,166,781,745 $53,651,516 $ 46,691,035 $1,267,124,296 48.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Mortgage Notes $ 661,629,178 $37,335,540 $ - $ 698,964,718 43.3%
Line of Credit 87,553,497 - 30,346,504 117,900,000 -0.5%
Acquisition Term Loan & Unsecured Line of Credit 20,249,935 - - 20,249,935 N/A
Other Liabilities 24,849,397 1,299,939 17,373,054 43,522,390 32.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities $ 794,282,007 $38,635,479 $ 47,719,558 $ 880,637,043 37.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Minority Interest $ 5,680,717 - $ 56,147,376 $61,828,093 89.9%
Total Shareholders Equity - - 324,659,160 324,659,160 76.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareholder Equity $ 799,962,724 $38,635,479 $428,526,094 $1,267,124,296 48.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios
- -----------------------------------------------------------------------------------------------------------------------------------
Q2 03 Change
- -----------------------------------------------------------------------------------------------------------------------------------
NOI/Investment in Real Estate 2.6% -0.3%
Total Dividends/Total FFO 63.0% -9.6%
Dividends/FFO per share 64.0% -8.6%
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Q2 02
- ----------------------------------------------------------------------------------------------------------------------
Corporate/
Retail Multifamily Other Properties Total
- ----------------------------------------------------------------------------------------------------------------------
Investment in Real Estate, at cost $629,447,831 $285,545,595 $ 21,566,912 $ 936,560,338
Accumulated Depreciation (74,558,282) (90,438,537) (1,999,783) (166,996,602)
Investment in and advances to Partnership and JVs - - 358,331 358,331
Other Assets 41,898,566 10,264,128 33,435,972 85,598,666
- ----------------------------------------------------------------------------------------------------------------------
Total Assets $596,788,115 $205,371,186 $ 53,361,432 $ 855,520,733
- ----------------------------------------------------------------------------------------------------------------------
Mortgage Notes $289,293,993 $198,401,464 $ - $ 487,695,457
Line of Credit 84,429,488 - 34,070,512 118,500,000
Acquisition Term Loan & Unsecured Line of Credit - - - -
Other Liabilities 12,704,188 5,409,789 14,815,009 32,928,986
- ----------------------------------------------------------------------------------------------------------------------
Total Liabilities $386,427,669 $203,811,253 $ 48,885,521 $ 639,124,443
- ----------------------------------------------------------------------------------------------------------------------
Minority Interest $695,676 - $ 31,857,194 $32,552,870
Total Shareholders Equity - - 183,843,420 183,843,420
- ----------------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareholder Equity $387,123,345 $203,811,253 $264,586,135 $ 855,520,733
- ----------------------------------------------------------------------------------------------------------------------
Ratios
- ----------------------------------------------------------------------------------------------------------------------
Q2 02
- ----------------------------------------------------------------------------------------------------------------------
NOI/Investment in Real Estate 3.0%
Total Dividends/Total FFO 72.6%
Dividends/FFO per share 72.5%
- ----------------------------------------------------------------------------------------------------------------------
NOTE: Reconciliation to GAAP is on pages 33 to 36.
Page 32
Pennsylvania REIT PREIT PEI
[LOGO OMITTED] LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) NYSE
BALANCE SHEET-RECONCILIATION TO GAAP
(Wholly Owned vs. JVs)
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Combined Adjustments to Assets Held
TOTAL (1) Equity Method Subtotal for Sale TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $1,151,324,700 $(197,499,583) $ 953,825,117 $ - $ 953,825,117
Multifamily Properties 72,410,503 (5,947,802) 66,462,701 (66,462,701) -
Industrial Properties 2,504,211 - 2,504,211 - 2,504,211
Construction In Progress 13,160,433 (1,559,524) 11,600,909 - 11,600,909
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN REAL ESTATE 1,239,399,847 (205,006,909) 1,034,392,938 (66,462,701) 967,930,237
Accumulated Depreciation (110,045,761) 43,479,796 (66,565,965) 17,578,164 (48,987,801)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Real Estate 1,129,354,086 (161,527,113) 967,826,973 (48,884,537) 918,942,436
- ------------------------------------------------------------------------------------------------------------------------------------
Investment in and advances to Partnerships and JVs 1,200,000 28,494,542 29,694,542 - 29,694,542
- ------------------------------------------------------------------------------------------------------------------------------------
1,130,554,086 (133,032,571) 997,444,722 (48,884,537) 948,560,185
- ------------------------------------------------------------------------------------------------------------------------------------
Allowance for Possible Losses
- ------------------------------------------------------------------------------------------------------------------------------------
1,130,554,086 (133,032,571) 997,444,722 (48,884,537) 948,560,185
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 15,035,033 (6,323,226) 8,711,807 8,711,807
Rents and Other Receivables 22,922,514 (9,022,617) 15,019,897 - 15,019,897
Assets held for sale 1,431,668 44,036 1,475,704 48,884,537 50,360,241
Intangible Assets 45,494,357 - 45,494,357 - 45,494,357
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets 51,686,638 (12,776,852) 38,909,786 38,909,786
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 136,570,210 (28,078,659) 108,491,551 48,884,537 157,376,088
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 1,267,124,296 (161,111,230) 1,106,013,066 - 1,106,013,066
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 698,964,718 (155,488,042) 543,476,676 (33,888,117) 509,588,559
Bank Loans Payable 117,900,000 - 117,900,000 - 117,900,000
Acquisition Term Loan & Unsecured Line of Credit 20,249,935 - 20,249,935 - 20,249,935
Assets held for sale 1,299,939 (179,955) 1,119,984 33,888,117 35,008,101
Other Liabilities 42,222,451 (5,443,233) 36,779,218 36,779,218
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 880,637,043 (161,111,230) 719,525,813 - 719,525,813
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Minority Interest 61,828,093 - 61,828,093 - 61,828,093
- ------------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par 16,837,304 - 16,837,304 - 16,837,304
Capital Contributed in Excess of Par 220,081,547 - 220,081,547 - 220,081,547
Restricted Stock (3,121,496) - (3,121,496) - (3,121,496)
Other Comprehensive Income (3,238,850) - (3,238,850) - (3,238,850)
Distributions in Excess of Net Income 94,100,655 - 94,100,655 - 94,100,655
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 324,659,160 - 324,659,160 - 324,659,160
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,267,124,296 $(161,111,230) $1,106,013,066 $ - $1,106,013,066
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
December 31, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Combined Adjustments to Assets Held
TOTAL (1) Equity Method Subtotal for Sale TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $620,345,902 $(197,299,357) $423,046,545 $ - $423,046,545
Multifamily Properties 305,335,579 (14,728,865) 290,606,714 290,606,714
Industrial Properties 2,504,211 - 2,504,211 - 2,504,211
Construction In Progress 24,825,973 (1,554,110) 23,271,863 - 23,271,863
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN REAL ESTATE 953,011,665 (213,582,332) 739,429,333 - 739,429,333
Accumulated Depreciation (180,493,036) 43,759,779 (136,733,257) (136,733,257)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Real Estate 772,518,629 (169,822,553) 602,696,076 - 602,696,076
- ------------------------------------------------------------------------------------------------------------------------------------
Investment in and advances to Partnerships and JVs 105,309 25,256,374 25,361,683 - 25,361,683
- ------------------------------------------------------------------------------------------------------------------------------------
772,623,938 (144,566,179) 628,057,759 - 628,057,759
- ------------------------------------------------------------------------------------------------------------------------------------
Allowance for Possible Losses
- ------------------------------------------------------------------------------------------------------------------------------------
772,623,938 (144,566,179) 628,057,759 - 628,057,759
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 18,628,137 (5,075,355) 13,552,782 - 13,552,782
Rents and Other Receivables 23,365,079 (10,122,016) 13,243,063 - 13,243,063
Assets held for sale - - - - -
Intangible Assets 12,793,886 - 12,793,886 - 12,793,886
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets 49,997,466 (13,981,793) 36,015,673 - 36,015,673
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 104,784,568 (29,179,164) 75,605,404 - 75,605,404
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 877,408,506 (173,745,343) 703,663,163 - 703,663,163
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 486,479,770 (166,728,446) 319,751,324 - 319,751,324
Bank Loans Payable 130,800,000 - 130,800,000 - 130,800,000
Acquisition Term Loan & Unsecured Line of Credit - - - - -
Assets held for sale - - - - -
Other Liabilities 39,643,762 (7,016,897) 32,626,865 - 32,626,865
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 656,923,532 (173,745,343) 483,178,189 - 483,178,189
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Minority Interest 32,472,437 - 32,472,437 - 32,472,437
- ------------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par 16,697,117 - 16,697,117 - 16,697,117
Capital Contributed in Excess of Par 216,768,855 - 216,768,855 - 216,768,855
Restricted Stock (2,513,191) - (2,513,191) - (2,513,191)
Other Comprehensive Income (4,365,728) - (4,365,728) - (4,365,728)
Distributions in Excess of Net Income (38,574,516) - (38,574,516) - (38,574,516)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 188,012,537 - 188,012,537 - 188,012,537
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $877,408,506 $(173,745,343) $703,663,163 $ - $703,663,163
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Combined Adjustments to Assets Held
TOTAL (1) Equity Method Subtotal for Sale TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $629,447,831 $(201,621,036) $427,826,795 $ - $427,826,795
Multifamily Properties 285,545,595 (29,125,026) 256,420,569 - 256,420,569
Industrial Properties 2,504,211 - 2,504,211 - 2,504,211
Construction In Progress 19,062,701 (1,970,173) 17,092,528 - 17,092,528
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN REAL ESTATE 936,560,338 (232,716,235) 703,844,103 - 703,844,103
Accumulated Depreciation (166,996,602) 44,386,374 (122,610,228) - (122,610,228)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Real Estate 769,563,736 (188,329,861) 581,233,875 - 581,233,875
- ------------------------------------------------------------------------------------------------------------------------------------
Investment in and advances to Partnerships and JVs 358,331 26,333,873 26,692,204 - 26,692,204
- ------------------------------------------------------------------------------------------------------------------------------------
769,922,067 (161,995,988) 607,926,079 - 607,926,079
- ------------------------------------------------------------------------------------------------------------------------------------
Allowance for Possible Losses
- ------------------------------------------------------------------------------------------------------------------------------------
769,922,067 (161,995,988) 607,926,079 - 607,926,079
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 16,520,755 (7,756,219) 8,764,536 - 8,764,536
Rents and Other Receivables 10,945,844 (2,521,094) 8,424,750 - 8,424,750
Assets held for sale - - - - -
Intangible Assets 12,793,886 - 12,793,886 - 12,793,886
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets 45,338,181 (12,907,701) 32,430,480 - 32,430,480
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 85,598,666 (23,185,014) 62,413,652 - 62,413,652
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 855,520,733 (185,181,002) 670,339,731 - 670,339,731
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 487,695,457 (177,552,539) 310,142,918 - 310,142,918
Bank Loans Payable 118,500,000 - 118,500,000 - 118,500,000
Acquisition Term Loan & Unsecured Line of Credit - - - - -
Assets held for sale - - - - -
Other Liabilities 32,928,986 (7,628,463) 25,300,523 - 25,300,523
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 639,124,443 (185,181,002) 453,943,441 - 453,943,441
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Minority Interest 32,552,870 - 32,552,870 - 32,552,870
- ------------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par 16,462,869 - 16,462,869 - 16,462,869
Capital Contributed in Excess of Par 211,205,950 - 211,205,950 - 211,205,950
Restricted Stock (3,204,433) - (3,204,433) - (3,204,433)
Other Comprehensive Income (3,315,686) - (3,315,686) - (3,315,686)
Distributions in Excess of Net Income (37,305,280) - (37,305,280) - (37,305,280)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 183,843,420 - 183,843,420 - 183,843,420
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $855,520,733 $(185,181,002) $670,339,731 $ - $670,339,731
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's
share of the Total Assets and Liabilities of the underlying properties. The
Company calculates the "gross up" by applying its percentage ownership
interest to the historical financial statements of its equity method
investments.
Page 33
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO Omitted] LISTED
NYSE
INCOME STATEMENT-RECONCILIATION TO GAAP (1)
QUARTERLY COMPARISON
(Wholly Owned vs. JV's)
Q2 03
(3 months ended 6/30/03)
-------------------------------------------------------------------------------------
Combined Adjustments to Assets Held TOTAL %
TOTAL (3) Equity Method Subtotal for Sale Total CHANGE
-------------------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 37,715,580 $ (7,228,316) $ 30,487,264 $(9,476,955) $ 21,010,309 81.8%
Straight-Lining of Base Rents 612,136 (54,198) 557,938 557,938 227.3%
Percentage Rents 288,141 (82,791) 205,350 205,350 -9.7%
Lease Termination 68,453 (6,239) 62,214 (62,214) - -100.0%
Expense Recoveries & Other Income 12,876,818 (2,799,510) 10,077,308 (357,256) 9,720,052 179.5%
-------------------------------------------------------------------------------------
TOTAL REVENUES 51,561,128 (10,171,054) 41,390,074 (9,896,425) 31,493,649 97.7%
-------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 14,460,123 (2,839,652) 11,620,471 (4,005,337) 7,615,134 177.8%
Real Estate Taxes 4,685,319 (846,218) 3,839,101 (923,139) 2,915,962 167.5%
-------------------------------------------------------------------------------------
TOTAL EXPENSES 19,145,442 (3,685,870) 15,459,572 (4,928,476) 10,531,096 174.9%
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
NET OPERATING INCOME 32,415,686 (6,485,184) 25,930,502 (4,967,949) 20,962,553 73.3%
=====================================================================================
OTHER INCOME (EXPENSES)
Management Company Revenue 3,791,550 - 3,791,550 3,791,550 76.2%
Interest Income $ 193,127 - 193,127 193,127 -45.6%
General & Administrative:
Corporate Payroll (3,948,117) - (3,948,117) (3,948,117) 11.7%
Other G&A Expenses (3,569,291) - (3,569,291) (3,569,291) 36.7%
-------------------------------------------------------------------------------------
Earnings before interest expenses,
taxes, depreciation and amortization 28,882,955 (6,485,184) 22,397,771 (4,967,949) 17,429,822 106.1%
-------------------------------------------------------------------------------------
Interest Expense (2) (13,975,115) 3,137,090 (10,838,025) 1,740,728 (9,097,297) 110.3%
Depreciation & Amortization (8,319,118) 1,324,953 (6,994,165) - (6,994,165) 114.1%
-------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (22,294,233) 4,462,043 (17,832,190) 1,740,728 (16,091,462) 111.9%
-------------------------------------------------------------------------------------
Equity in Income of partnerships and JVs - 2,023,141 2,023,141 2,023,141
-------------------------------------------------------------------------------------
Gains (losses) on sales of interests in
Real Estate 4,321,803 - 4,321,803 - 4,321,803 N/A
-------------------------------------------------------------------------------------
Income before Minority Interest 10,910,525 - 10,910,525 (3,227,221) 7,683,304 178.8%
-------------------------------------------------------------------------------------
Minority Interest of O.P. Unitholders (823,758) - (823,758) - (823,758) 168.6%
-------------------------------------------------------------------------------------
Income from Operations 10,086,767 - 10,086,767 (3,227,221) 6,859,546 180.1%
-------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate - - - 3,227,221 3,227,221 47.8%
Equity in Income of partnerships and JVs -
Minority Interest of O.P. Unitholders (15,649,831) - (15,649,831) (15,649,831) N/A
Gain (losses) on Disposition of Discontinued
Operations 150,200,805 - 150,200,805 150,200,805 N/A
-------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS 134,550,974 - 134,550,974 3,227,221 137,778,195 N/A
-------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - - N/A
-------------------------------------------------------------------------------------
NET INCOME $144,637,741 $ - $144,637,741 $ - $144,637,741 3156.4%
-------------------------------------------------------------------------------------
Q2 02
(3 months ended 6/30/02)
-------------------------------------------------------------------------------------
Combined Adjustments to Assets Held
TOTAL(3) Equity Method Subtotal for Sale Total
-------------------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 32,212,167 $ (8,821,206) $23,390,961 $(11,834,932) $ 11,556,029
Straight-Lining of Base Rents 225,663 (55,218) 170,445 - 170,445
Percentage Rents 312,766 (85,436) 227,330 227,330
Lease Termination 626,816 (61,132) 565,684 (69,797) 495,887
Expense Recoveries & Other Income 7,579,046 (3,545,249) 4,033,797 (555,598) 3,478,199
-------------------------------------------------------------------------------------
TOTAL REVENUES 40,956,458 (12,568,241) 28,388,217 (12,460,327) 15,927,890
-------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 9,965,907 (3,165,313) 6,800,594 (4,058,936) 2,741,658
Real Estate Taxes 3,229,733 (1,037,595) 2,192,138 (1,102,258) 1,089,880
-------------------------------------------------------------------------------------
TOTAL EXPENSES 13,195,640 (4,202,908) 8,992,732 (5,161,194) 3,831,538
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
NET OPERATING INCOME 27,760,818 (8,365,333) 19,395,485 (7,299,133) 12,096,352
=====================================================================================
OTHER INCOME (EXPENSES)
Management Company Revenue 2,151,596 - 2,151,596 - 2,151,596
Interest Income 354,849 - 354,849 - 354,849
General & Administrative:
Corporate Payroll (3,535,982) - (3,535,982) - (3,535,982)
Other G&A Expenses (2,611,050) - (2,611,050) - (2,611,050)
-------------------------------------------------------------------------------------
Earnings before interest expenses,
taxes, depreciation and amortization 24,120,231 (8,365,333) 15,754,898 (7,299,133) 8,455,765
-------------------------------------------------------------------------------------
Interest Expense (2) (11,570,711) 4,124,718 (7,445,993) 3,120,037 (4,325,956)
Depreciation & Amortization (7,680,779) 2,347,670 (5,333,109) 2,066,346 (3,266,763)
-------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (19,251,490) 6,472,388 (12,779,102) 5,186,383 (7,592,719)
-------------------------------------------------------------------------------------
Equity in Income of partnerships and JVs 1,892,945 1,892,945 1,892,945
-------------------------------------------------------------------------------------
Gains (losses) on sales of interests in
Real Estate - - - - -
-------------------------------------------------------------------------------------
Income before Minority Interest 4,868,741 - 4,868,741 (2,112,750) 2,755,991
-------------------------------------------------------------------------------------
Minority Interest of O.P. Unitholders (306,655) - (306,655) - (306,655)
-------------------------------------------------------------------------------------
Income from Operations 4,562,086 - 4,562,086 (2,112,750) 2,449,336
-------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate 70,839 - 70,839 2,112,750 2,183,589
Equity in Income of partnerships and JVs -
Minority Interest of O.P. Unitholders (191,297) - (191,297) - (191,297)
Gain (losses) on Disposition of Discontinued
Operations - - - - -
-------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS (120,458) - (120,458) 2,112,750 1,992,292
-------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - -
-------------------------------------------------------------------------------------
NET INCOME $ 4,441,628 $ - $ 4,441,628 $ - $ 4,441,628
-------------------------------------------------------------------------------------
(1) Prior period income and expenses have been restated to adjust for
discontinued operations.
(2) Capitalized interest expense for the line of credit and construction loans
of $367,111 not included in the quarter ended 6/30/03 and $322,243 not
included in the quarter ended 6/30/02.
(3) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's
share of the Total Revenues and Expenses of the underlying properties. The
Company calculates the "gross up" by applying its percentage ownership
interest to the historical financial statements of its equity method
investments.
Page 34
Pennsylvania REIT PREIT PEI
FLASH REPORT-RECONCILIATION TO GAAP (June 30, 2003) [LOGO Omitted] LISTED
Financial Statement NYSE
- -----------------------------------------------------------------------------------------------------------------------------------
Q2 03
(3 months ended 6/30/03)
- -----------------------------------------------------------------------------------------------------------------------------------
Adjustments to Assets Held
Combined TOTAL Equity Method Subtotal for Sale Total
- -----------------------------------------------------------------------------------------------------------------------------------
Real Estate Revenues:
Same Store $ 15,319,279 (7,652,060) $7,667,219 - $ 7,667,219
New 20,312,837 (1,774,585) 18,538,252 - 18,538,252
Redevelopment 5,288,178 - 5,288,178 - 5,288,178
Discontinued 10,640,834 (744,409) 9,896,425 (9,896,425) -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 51,561,128 10,171,054) 41,390,074 (9,896,425) 31,493,649
- -----------------------------------------------------------------------------------------------------------------------------------
Operating Expenses:
Same Store 3,917,619 (2,275,486) 1,642,133 - 1,642,133
New 8,156,228 (1,075,498) 7,080,730 - 7,080,730
Redevelopment 1,808,233 - 1,808,233 - 1,808,233
Discontinued 5,263,362 (334,886) 4,928,476 (4,928,476) -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 19,145,442 (3,685,870) 15,459,572 (4,928,476) 10,531,096
- -----------------------------------------------------------------------------------------------------------------------------------
NOI:
Same Store 11,401,660 (5,376,574) 6,025,086 - 6,025,086
New 12,156,609 (699,087) 11,457,522 - 11,457,522
Redevelopment 3,479,945 - 3,479,945 - 3,479,945
Discontinued 5,377,472 (409,523) 4,967,949 (4,967,949) -
- -----------------------------------------------------------------------------------------------------------------------------------
NOI (2) 32,415,686 (6,485,184) 25,930,502 (4,967,949) 20,962,553
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue 3,791,550 - 3,791,550 - 3,791,550
Interest Income 193,127 - 193,127 - 193,127
General & Administrative: - - - -
Corporate Payroll (3,948,117) - (3,948,117) - (3,948,117)
Other G&A Expenses (3,569,291) - (3,569,291) - (3,569,291)
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 28,882,955 (6,485,184) 22,397,771 (4,967,949) 17,429,822
- -----------------------------------------------------------------------------------------------------------------------------------
Interest Expense (13,975,115) 3,137,090 (10,838,025) $1,740,728 (9,097,297)
Depreciation and Amortization (8,319,118) 1,324,953 (6,994,165) - (6,994,165)
Equity in income of partnership and JVs - 2,023,141 2,023,141 - 2,023,141
Gain(loss) on Sale of Interests in RE 4,321,803 - 4,321,803 - 4,321,803
DISCONTINUED OPERATIONS: - - - - -
Income from Disposed Real Estate - - - 3,227,221 3,227,221
Equity in income of partnership and JVs - - - - -
Minority Interest of O.P. Unitholders (15,649,831) - (15,649,831) - (15,649,831)
Gain (losses) on Disposition of Discontinued Operations 150,200,805 - - 150,200,805 150,200,805
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS 134,550,974 - (15,649,831) 153,428,026 137,778,195
- -----------------------------------------------------------------------------------------------------------------------------------
Extraordinary item(Loss on early extinguishment of debt) - - - - -
Minority Interest of OP Unit Holders (823,758) - (823,758) - (823,758)
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCOME 144,637,741 - (5,563,064) 150,200,805 144,637,741
- -----------------------------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate (4,321,803) - (4,321,803) - (4,321,803)
Depreciation and Amor. of Real Estate 8,319,118 - 8,319,118 - 8,319,118
FFO Adjustments (133,792,216) - (133,792,216) - (133,792,216)
- -----------------------------------------------------------------------------------------------------------------------------------
FFO 14,842,840 - (135,357,965) 150,200,805 14,842,840
- -----------------------------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents (612,136) - (612,136) - (612,136)
Recurring Capital Expenditures (761,533) - (761,533) - (761,533)
Amortization of Debt Premium (1,117,767) - (1,117,767) - (1,117,767)
- -----------------------------------------------------------------------------------------------------------------------------------
FAD $ 12,351,404 $ - -$137,849,401 $150,200,805 $ 12,351,404
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends $ 9,352,573
Share Price (at close) $28.65
Weighted Average Number of Shares 16,615,576
WA number of Shares and OP Units 18,614,284
- ---------------------------------------------------------- ----------------
Net Income/Share $8.70
FFO/Share and OP Units $0.80
FAD/Share and OP Units $0.66
Dividend/Share and OP Units $0.51
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Q2 02
(3 months ended 6/30/02)
- -----------------------------------------------------------------------------------------------------------------------------------
Adjustments to Assets Held
Combined TOTAL Equity Method Subtotal for Sale Total
- -----------------------------------------------------------------------------------------------------------------------------------
Real Estate Revenues:
Same Store $15,193,053 (7,385,721) $ 7,807,332 - $7,807,332
New 6,316,968 (3,490,055) 2,826,913 - 2,826,913
Redevelopment 5,293,645 - 5,293,645 - 5,293,645
Discontinued 14,152,792 (1,692,465) 12,460,327 (12,460,327) -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 40,956,458 (12,568,241) 28,388,217 (12,460,327) 15,927,890
- -----------------------------------------------------------------------------------------------------------------------------------
Operating Expenses:
Same Store 3,517,161 (2,151,767) 1,365,394 - 1,365,394
New 2,143,643 (1,360,066) 783,577 - 783,577
Redevelopment 1,682,567 - 1,682,567 - 1,682,567
Discontinued 5,852,269 (691,075) 5,161,194 (5,161,194) -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 13,195,640 (4,202,908) 8,992,732 (5,161,194) 3,831,538
- -----------------------------------------------------------------------------------------------------------------------------------
NOI:
Same Store 11,675,892 (5,233,954) 6,441,938 - 6,441,938
New 4,173,325 (2,129,989) 2,043,336 - 2,043,336
Redevelopment 3,611,078 - 3,611,078 - 3,611,078
Discontinued 8,300,523 (1,001,390) 7,299,133 (7,299,133) -
- -----------------------------------------------------------------------------------------------------------------------------------
NOI (2) 27,760,818 (8,365,333) 19,395,485 (7,299,133) 12,096,352
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue 2,151,596 - 2,151,596 - 2,151,596
Interest Income 354,849 - 354,849 - 354,849
General & Administrative: - - - -
Corporate Payroll (3,535,982) - (3,535,982) - (3,535,982)
Other G&A Expenses (2,611,050) - (2,611,050) - (2,611,050)
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 24,120,231 (8,365,333) 15,754,898 (7,299,133) 8,455,765
- -----------------------------------------------------------------------------------------------------------------------------------
Interest Expense (11,570,711) 4,124,718 (7,445,993) $3,120,037 (4,325,956)
Depreciation and Amortization (7,680,779) 2,347,670 (5,333,109) $2,066,346 (3,266,763)
Equity in income of partnership and JVs 1,892,945 1,892,945 - 1,892,945
Gain(loss) on Sale of Interests in RE - - - - -
DISCONTINUED OPERATIONS: - - - -
Income from Disposed Real Estate 70,839 - 70,839 2,112,750 2,183,589
Equity in income of partnership and JVs - - -
Minority Interest of O.P. Unitholders (191,297) - (191,297) - (191,297)
Gain (losses) on Disposition of Discontinued Operations - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS (120,458) - (120,458) 2,112,750 1,992,292
- -----------------------------------------------------------------------------------------------------------------------------------
Extraordinary item(Loss on early extinguishment of debt) - - - - -
Minority Interest of OP Unit Holders (306,655) - (306,655) - (306,655)
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCOME 4,441,628 - 4,441,628 - 4,441,628
- -----------------------------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate - - - - -
Depreciation and Amor. of Real Estate 7,680,779 - 7,680,779 - 7,680,779
FFO Adjustments 553,687 - 553,687 - 553,687
- -----------------------------------------------------------------------------------------------------------------------------------
FFO 12,676,094 - 12,676,094 - 12,676,094
- -----------------------------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents 227,941 - (227,941) - (227,941)
Recurring Capital Expenditures (881,762) - (881,762) - (881,762)
Amortization of Debt Premium - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
FAD $12,022,273 $ - $11,566,391 $ - $ 11,566,391
- ---------------------------------------------------------------------------------------------------------------------==============
Dividends $ 9,200,226
Share Price (at close) $27.11
Weighted Average Number of Shares 16,215,645
WA number of Shares and OP Units 18,024,071
- -------------------------------------------------------- ---------------
Net Income/Share $0.27
FFO/Share and OP Units $0.70
FAD/Share and OP Units $0.67
Dividend/Share and OP Units $0.51
- -----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania REIT PREIT PEI
FLASH REPORT-RECONCILIATION TO GAAP (June 30, 2003) [LOGO Omitted] LISTED
Financial Statement NYSE
Balance Sheet
- -----------------------------------------------------------------------------------------------------------------------------------
Q2 03
(3 months ended 6/30/03)
- -----------------------------------------------------------------------------------------------------------------------------------
Adjustments to Assets Held
Combined TOTAL Equity Method Subtotal for Sale TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
Investment in Real Estate, at cost $1,239,399,847 $(205,006,909) $1,034,392,938 $ (66,462,701) $967,930,237
Accumulated Depreciation (110,045,761) 43,479,796 (66,565,965) 17,578,164 (48,987,801)
Investment in and advances to Partnership and JVs 1,123,207 28,494,542 29,617,749 - 29,617,749
Other Assets 136,647,003 (28,078,659) $ 108,568,344 48,884,537 157,452,881
- -----------------------------------------------------------------------------------------------------------------------------------
Total Assets $1,267,124,296 $(161,111,230) $1,106,013,066 $ - $1,106,013,066
- -----------------------------------------------------------------------------------------------------------------------------------
Mortgage Notes $ 698,964,718 $(155,488,042) $ 543,476,676 $ (33,888,117) $509,588,559
Line of Credit 117,900,000 - 117,900,000 - 117,900,000
Acquisition Term Loan & Unsecured Line of Credit 20,249,935 - 20,249,935 - 20,249,935
Other Liabilities 43,522,390 (5,623,188) 37,899,202 33,888,117 71,787,319
- -----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities $ 880,637,043 $(161,111,230) $ 719,525,813 $ - $719,525,813
- -----------------------------------------------------------------------------------------------------------------------------------
Minority Interest $ 61,828,093 $ - $ 61,828,093 $ - $61,828,093
Total Shareholders Equity 324,659,160 - 324,659,160 - 324,659,160
- -----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareholder Equity $1,267,124,296 $(161,111,230) $1,106,013,066 $ - $1,106,013,066
- -----------------------------------------------------------------------------------------------------------------------------------
Balance Sheet
- -----------------------------------------------------------------------------------------------------------------------------------
Q2 02
(3 months ended 6/30/02)
- -----------------------------------------------------------------------------------------------------------------------------------
Adjustments to Assets Held
Combined TOTAL Equity Method Subtotal for Sale TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
Investment in Real Estate, at cost $ 936,560,338 $ (232,716,235) $703,844,103 $ - $703,844,103
Accumulated Depreciation (166,996,602) 44,386,374 (122,610,228) - (122,610,228)
Investment in and advances to Partnership and JVs 358,331 26,333,873 26,692,204 - 26,692,204
Other Assets 85,598,666 (23,185,014) $ 62,413,652 - 62,413,652
- -----------------------------------------------------------------------------------------------------------------------------------
Total Assets $ 855,520,733 $ (185,181,002) $670,339,731 $ - $670,339,731
- -----------------------------------------------------------------------------------------------------------------------------------
Mortgage Notes $ 487,695,457 $ (177,552,539) $310,142,918 $ - $310,142,918
Line of Credit 118,500,000 - 118,500,000 - 118,500,000
Acquisition Term Loan & Unsecured Line of Credit - - - - -
Other Liabilities 32,928,986 (7,628,463) 25,300,523 - 25,300,523
- -----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities $ 639,124,443 $ (185,181,002) $453,943,441 $ - $453,943,441
- -----------------------------------------------------------------------------------------------------------------------------------
Minority Interest $ 32,552,870 $ - $ 32,552,870 $ - $ 32,552,870
Total Shareholders Equity 183,843,420 - 183,843,420 - 183,843,420
- -----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareholder Equity $ 855,520,733 $ (185,181,002) $670,339,731 $ - $670,339,731
- -----------------------------------------------------------------------------------------------------------------------------------
Page 35
Pennsylvania REIT PREIT PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (June 30, 2003) [LOGO Omitted] LISTED
NYSE
Definitions
Fund From Operations (FFO)
NAREIT defines FFO as income before gains (losses) on property sales and
extraordinary items (computed in accordance with GAAP); plus real estate
depreciation and similar adjustments for unconsolidated joint ventures after
adjustments for non-real estate depreciation and amortization of financing
costs. The Company computes FFO in accordance with standards established by
NAREIT, which may not be comparable to FFO reported by other REITs that do not
define the term in accordance with the current NAREIT definition, or that
interpret the current NAREIT definition differently than the Company. FFO does
not represent cash generated from operating activities in accordance with GAAP
and should not be considered to be an alternative to net income (determined in
accordance with GAAP) as an indication of the Company's financial performance or
to be an alternative to cash flow from operating activities (determined in
accordance with GAAP) as a measure of the Company's liquidity, nor is it
indicative of funds available for the Company's cash needs, including its
ability to make cash distributions. The Company believes that net income is the
most directly comparable GAAP measurement to FFO.
The Company believes that net income is the most directly comparable GAAP
measurement to FFO. The Company believes that FFO is helpful to investors as a
measure of operating performance because it excludes various items included in
net income that do not relate to or are not indicative of operating performance,
such as various non-recurring items, gains on sales of real estate and
depreciation and amortization of real estate.
Net Operating Income (NOI)
NOI is derived from real estate revenues (determined in accordance with GAAP)
minus property operating expenses (determined in accordance with GAAP). NOI does
not represent cash generated from operating activities in accordance with GAAP
and should not be considered to be an alternative to net income (determined in
accordance with GAAP) as an indication of the Company's financial performance or
to be an alternative to cash flow from operating activities (determined in
accordance with GAAP) as a measure of the Company's liquidity; nor is it
indicative of funds available for the Company's cash needs, including its
ability to make cash distributions.
The Company believes that net income is the most directly comparable GAAP
measurement to NOI. The Company believes that NOI is helpful to investors as a
measure of operating performance because it is an indicator of the return on
investment on the properties, and provides a comparison measurement of the
properties over time. NOI excludes general and administrative expenses,
management company revenues, interest income, interest expense, depreciation and
amortization, income from discontinued operations and gains on sales of interest
in real estate.
Funds Available for Distribution (FAD)
FAD also referred to as Cash Available for Distributions (CAD) and adjusted FFO
(AFFO). FAD refers to a computation made by analysts and investors to measure a
real estate company's cash flows generated by operations. FAD is calculated by
subtracting from FFO (1) normalized recurring capital expenditures that are
capitalized but necessary to maintain a REIT's properties and (2) straight-line
rents.
The Company believes that net income is the most directly comparable GAAP
measurement to FAD. The Company believes FAD provides a meaningful indicator of
its ability to fund cash needs and to make cash distributions to equity owners.
In addition, the Company feels to further understand its liquidity, FAD should
be compared with its cash flow from operating activities determined in
accordance with GAAP, as presented in its consolidated financial statements. The
computation of FAD may not be comparable to FAD reported by other REITs or real
estate companies and FAD does not represent cash generated from operating
activities determined in accordance with GAAP, and should not be considered as
an alternative to net income (determined in accordance with GAAP) as an
indication of our performance, or as an alternative to net cash flow from
operating activities (determined in accordance with GAAP), as a measure of our
liquidity.
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)
Earnings before interest, taxes, depreciation and amortization. On a property
level, EBITDA and NOI are equivalent; however, certain corporate revenues and
expenses are added and deducted to/from NOI to derive EBITDA on a company wide
basis. Specifically, management company revenues and interest income are added
to NOI while corporate payroll and other General and Administrative expenses are
deducted from NOI to calculate EBITDA.
The Company believes that net income is the most directly comparable GAAP
measurement to EBITDA. The Company believes that EBITDA helps the Company and
its investors evaluate the ongoing operating performance of its properties and
facilitate comparisons with other REITs and real estate companies. These
measures assist management by providing a baseline to assess property-level
results, particularly as the Company acquires or sells assets. The EBITDA
measures presented by the Company may not be comparable to other similarly
titled measures of other companies.
Page 36