Exhibit 99.1
[LOGO OF PREIT]
Pennsylvania Real Estate Investment Trust
QUARTERLY SUPPLEMENTAL DISCLOSURE
(September 30, 2003)
www.preit.com
[LOGO OF PEI LISTED NYSE]
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
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.
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
COMPANY INFORMATION
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[LOGO OF PEI LISTED NYSE]
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 17.6 million square feet) located in the
eastern United States. PREIT's portfolio as of August 11, 2003 consists of 32
properties in 7 states. PREIT's portfolio includes 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. On 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
- ---------------------------------------------------------------------------
Lehman Brothers David Shulman (212) 526-3413
Alexander D. Goldfarb (212) 526-5232
- ---------------------------------------------------------------------------
US Bancorp Piper Jaffray Andrew L. Rosivach (212) 284-9304
- ---------------------------------------------------------------------------
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 11/5/2003 10/31/2002
- ---------------------------------------------------------------------------
Fourth Quarter 3/4/2004(1) 3/31/2003
- ---------------------------------------------------------------------------
(1) Tentative date.
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
1
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
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Time Line/Recent Developments
October 28, 2003 - Pennsylvania Real Estate Investment Trust announced that it
intends to release its financial results for the third quarter ended September
30, 2003 on Wednesday, November 5, 2003.
October 22, 2003 - Pennsylvania Real Estate Investment Trust announced that a
new Filene's department store will be added to its 620,000 sf Dartmouth Mall and
is anticipated to open in Fall, 2004.
October 17, 2003 - Pennsylvania Real Estate Investment Trust announced that its
Board of Trustees has approved a quarterly cash dividend of $0.54 per common
share, an increase of $0.03 per share, or 5.9%.
October 9, 2003 - Pennsylvania Real Estate Investment Trust announced that it
will hold a special meeting of shareholders on Thursday, November 11, 2003 at
11:00 a.m. EST.
September 25, 2003 - Pennsylvania Real Estate Investment Trust announced that it
has completed the sale of its remaining two joint venture multifamily
properties. The purchase price was approximately $8.6 million, including assumed
debt of $3.4 million, with net proceeds of $5.0 million. The Company is expected
to record a gain of approximately $6.4 million in the third quarter of 2003.
September 23, 2003 - Pennsylvania Real Estate Investment Trust announced that it
has acquired a 6.08 acre parcel adjacent to Plymouth Meeting Mall, Plymouth
Meeting, PA from IKEA.
September 4, 2003 - Pennsylvania Real Estate Investment Trust announced that it
has acquired the remaining 70% interest in Willow Grove Park, Willow Grove, PA
from its partner Pennsylvania State Employee Retirement System ("PaSERS") and
now owns 100% of the shopping mall. The purchase price was $122.3 million.
August 27, 2003 - Pennsylvania Real Estate Investment Trust announced that
Lehman Brothers, underwriter of PREIT's recently completed public offering, has
exercised in full its over-allotment option to purchase an additional 825,000
common shares at the public offering price of $29.75 per share. the
over-allotment option was granted in connection with PREIT's public offering of
5.5 million common shares, which closed on Thursday, August 21, 2003. After
payment of an underwriting discount of $0.25 per share and offering expenses,
the total net proceeds to PREIT are expected to be approximately $184 million.
August 18, 2003 - Pennsylvania Real Estate Investment Trust announced 5.5
million common share offering priced at $29.75. The net proceeds to the Company,
after payment of an underwriting discount of $0.25 per share and offering
expenses, will be approximately $161 million.
August 11, 2003 - Pennsylvania Real Estate Investment Trust announced 2003
second quarter and six months results.
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.
NOTE: A copy of the press releases are available on the Company's website at
www.preit.com.
2
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
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Stock Information
PREIT's common stock trades on the New York Stock Exchange (symbol: PEI).
Q3:9/30/03 Q2:6/30/03 Q1:3/31/03 CY 12/31/02
------------- ------------- ------------- -------------
High Price 33.45 30.34 28.80 27.20
Low Price 29.80 27.94 24.70 20.55
Close 33.45 29.95 28.65 26.00
Average Daily Trading Volume 96,738 85,567 37,385 41,495
Shares Outstanding at end of period 23,480,595 16,837,304 16,753,614 16,697,119
O.P. Units 2,056,861 2,057,618 1,763,320 1,763,318
------------- ------------- ------------- -------------
Fully Diluted Shares Outstanding 25,537,456 18,894,922 18,516,934 18,460,437
Weighted Avg. number of shares outstanding 19,488,367 16,615,576 16,544,737 16,162,327
Weighted Avg. effect of full conversion of O.P. units 2,049,112 1,998,708 1,763,320 1,804,779
------------- ------------- ------------- -------------
Wtd Avg. Shares Outstanding and O.P. Units 21,537,479 18,614,284 18,308,057 17,967,106
Market Value of Shares (based on closing price) $ 854,227,903 $ 565,902,914 $ 530,510,159 $ 479,971,362
============= ============= ============= =============
Q3:9/30/02 CY 12/31/01 CY 12/31/00
------------- ------------- -------------
High Price 27.11 25.05 19 3/4
Low Price 20.55 18.25 14 5/8
Close 25.76 23.20 19 1/8
Average Daily Trading Volume 45,425 39,463 24,897
Shares Outstanding at end of period 16,602,761 15,876,084 13,628,448
O.P. Units 1,602,946 1,753,580 1,415,791
------------- ------------- -------------
Fully Diluted Shares Outstanding 18,205,707 17,629,664 15,044,239
Weighted Avg. number of shares outstanding 16,566,418 14,656,711 13,403,233
Weighted Avg. effect of full conversion of O.P. units 1,738,960 1,869,383 1,573,028
------------- ------------- -------------
Wtd Avg. Shares Outstanding and O.P. Units 18,305,378 16,526,094 14,976,261
Market Value of Shares (based on closing price) $ 468,979,012 $ 409,008,205 $ 287,721,071
============= ============= =============
Distribution Information
Q3:9/30/03 Q2:6/30/03 Q1:3/31/03 CY 12/31/02 Q3:9/30/02 CY 12/31/01 CY12/30/00(1)
----------------------------------------------------------------------------------------
Dividend per share (1) $ 0.510 $ 0.510 $ 0.510 $ 2.040 $ 0.510 $ 2.040 $ 1.920
Annualized Dividend Yield (2) 6.1% 6.8% 7.1% 7.8% 7.9% 8.8% 10.0%
Capital Gain N/A N/A N/A $ 0.082 $ 0.082 $ 0.110 $ 0.590
Section 1250 Gain N/A N/A N/A $ - $ - $ 0.129 $ 0.190
Return of Capital N/A N/A N/A $ 0.134 $ - $ - $ -
Qualified 5 Year Gain (incl. in cap. Gain) N/A N/A N/A $ - $ - $ - $ -
Ordinary Income N/A N/A N/A $ 1.824 $ 0.428 $ 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.
Shareholder Information
Ten Largest Institutional Shareholders: Shares Held (1) 9/30/2003
---------
RREEF Real Estate Securities Advisers, L.P. 1,017,700
The Vanguard Group 720,937
Barclays Global Investors 678,974
Neuberger Berman, LLC 367,700
State Street Global Advisors 281,713
J.P. Morgan Investment Mgmt. Inc. 271,600
Manufacturers Advisers Corporation 259,952
Wachovia Securities 237,552
Kensington Investment Management Inc. 227,700
Stratton Management Company 207,250
TOTAL of Ten Largest Institutional: 4,271,078
TOTAL of all Institutional holders: 7,354,860
Ten Largest as % of Total Institutional: 58.1%
(1) Based on 13F filings as of 9/30/03 & 6/30/03.
[CHART APPEARS HERE]
Breakdown of Share & Unit % of 9/30/03
Ownership: Shares Held 9/30/2003 9/30/2002 total
---------- ---------- ------------
Institutional (1) 7,354,860 3,944,265 28.8%
Retail (2) 16,369,287 12,522,881 64.1%
Insiders (3) 1,813,309 1,738,561 7.1%
---------- ---------- ------------
TOTAL 25,537,456 18,205,707 100.0%
[CHART APPEARS HERE]
(1) Based on 13F filings as of 9/30/03 & 6/30/03.
(2) Retail ownership equals total shares outstanding minus institutional and
insider ownership.
(3) Insider holdings as of 9/25/03. (Shares and O.P. Units only. Excludes
544,644 exercisable options).
Share Ownership by Insiders: Shares Held Interim Net
(including O.P. Units, Beneficial Ownership Purchases of
and Exercisable Options) As of 9/25/03(1) % of Total(2) Shares(3) As of 4/1/03(4) % of Total (5)
------------------ --------------- ------------- ----------------- ----------------
Ronald Rubin 831,262 3.3% 8,892 822,370 4.4%
George F. Rubin 414,009 1.6% 10,302 403,707 2.2%
Leonard I. Korman 312,785 1.2% - 312,785 1.7%
Jonathan B. Weller 179,192 0.7% (43,969) 223,161 1.2%
Edward A. Glickman 200,436 0.8% - 200,436 1.1%
Joseph F. Coradino 133,204 0.5% (2,792) 135,996 0.7%
Jeffrey A. Linn 74,344 0.3% (11,099) 85,443 0.5%
Jeffrey P. Orleans 82,748 0.3% - 82,748 0.4%
Douglas S. Grayson 55,152 0.2% (6,090) 61,242 0.3%
David J. Bryant 23,639 0.1% (3,964) 27,603 0.1%
Raymond Trost 17,071 0.1% (4,665) 21,736 0.1%
Lee H. Javitch 13,125 0.1% - 13,125 0.1%
Bruce Goldman 10,611 0.0% 37 10,574 0.1%
Rosemarie B. Greco 7,125 0.0% - 7,125 0.0%
Ira Lubert 3,250 0.0% - 3,250 0.0%
------------------ --------------- ------------- ----------------- ----------------
TOTAL 2,357,953 9.2% (53,348) 2,411,301 13.0%
------------------ --------------- ------------- ----------------- ----------------
(1) Source of Insider Ownership: S-4 SEC filing dated October 1, 2003 and
Company records.
(2) Based on fully diluted shares outstanding as of September 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 30, 2003. Refer to footnotes
in proxy for details on beneficial ownership.
(5) Based on fully diluted shares outstanding as of March 31, 2003.
3
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
MARKET CAPITALIZATION
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September 30, 2003 June 30, 2003 March 31, 2003 December 31, 2002
------------------ --------------- --------------- -----------------
EQUITY CAPITALIZATION
Shares Outstanding 23,480,595 16,837,304 16,753,614 16,697,119
O.P. Units Outstanding 2,056,861 2,057,618 1,763,320 1,763,318
------------------ --------------- --------------- -----------------
TOTAL Shares and O.P. Units 25,537,456 18,894,922 18,516,934 18,460,437
Market Price (at end of period) 33.45 29.95 28.65 26.00
Equity Market Capitalization $ 854,227,903 $ 565,902,914 $ 530,510,159 $ 479,971,362
DEBT CAPITALIZATION
Unsecured Debt Balance $ 20,249,935 $ - $ -
Secured Debt Balance 739,061,360 816,864,718 625,117,601 617,279,770
------------------ --------------- --------------- -----------------
Debt Capitalization $ 739,061,360 $ 837,114,653 $ 625,117,601 $ 617,279,770
------------------ --------------- --------------- -----------------
TOTAL MARKET CAPITALIZATION $ 1,593,289,263 $ 1,403,017,567 $ 1,155,627,760 $ 1,097,251,132
================== =============== =============== =================
September 30, 2002 December 31, 2001 December 31, 2000
------------------ ----------------- -----------------
EQUITY CAPITALIZATION
Shares Outstanding 16,602,761 15,876,084 13,628,448
O.P. Units Outstanding 1,602,946 1,753,580 1,415,791
------------------ ----------------- -----------------
TOTAL Shares and O.P. Units 18,205,707 17,629,664 15,044,239
Market Price (at end of period) 25.76 23.20 19 1/8
Equity Market Capitalization $ 468,979,012 $ 409,008,205 $ 287,721,071
DEBT CAPITALIZATION
Unsecured Debt Balance $ - - $ -
Secured Debt Balance 599,413,976 506,175,818 524,782,225
------------------ ----------------- -----------------
Debt Capitalization $ 599,413,976 $ 506,175,818 $ 524,782,225
------------------ ----------------- -----------------
TOTAL MARKET CAPITALIZATION $ 1,068,392,988 $ 915,184,023 $ 812,503,296
================== ================= =================
Debt Capitalization/Total Market Capitalization 46.4% 59.7% 54.1% 56.3% 56.1% 55.3% 64.6%
Equity Capitalization/Total Market Capitalization 53.6% 40.3% 45.9% 43.7% 43.9% 44.7% 35.4%
Unsecured Debt Balance/Total Debt 0.0% 2.4% 0.0% 0.0% 0.0% 0.0% 0.0%
[CHART APPEARS HERE]
CAPITAL RESOURCES
September 30, 2003 June 30, 2003 March 31, 2003 December 31, 2002
------------------ ------------------ ------------------ ------------------
Cash on Hand $ 43,512,963 $ 15,035,033 $ 14,015,658 $ 18,628,137
Line of Credit Capacity(1) $ 200,000,000 $ 200,000,000 $ 200,000,000 $ 200,000,000
Amount Used (includes letters of credit) (673,671) (118,573,671) (147,573,671) (131,473,671)
------------------ ------------------ ------------------ ------------------
Available LOC(2) $ 199,326,329 $ 81,426,329 $ 52,426,329 $ 68,526,329
Shelf Registration $ 500,000,000 $ 500,000,000 $ 500,000,000 $ 500,000,000
Amount Used (344,146,042) (155,977,292) (155,977,292) (155,977,292)
------------------ ------------------ ------------------ ------------------
Available Shelf $ 155,853,958 $ 344,022,708 $ 344,022,708 $ 344,022,708
------------------ ------------------ ------------------ ------------------
TOTAL CAPITAL RESOURCES $ 398,693,250 $ 440,484,070 $ 410,464,695 $ 431,177,174
------------------ ------------------ ------------------ ------------------
September 30, 2002 December 31, 2001 December 31, 2000
------------------ ------------------ ------------------
Cash on Hand $ 16,130,074 $ 16,242,450 $ 10,594,592
Line of Credit Capacity(1) $ 200,000,000 $ 175,000,000 $ 175,000,000
Amount Used (includes letters of credit) (121,673,671) (100,168,659) (115,873,671)
------------------ ------------------ ------------------
Available LOC(2) $ 78,326,329 $ 74,831,341 $ 59,126,329
Shelf Registration $ 500,000,000 $ 200,000,000 $ 200,000,000
Amount Used (155,977,292) (148,925,000) (102,925,000)
------------------ ------------------ ------------------
Available Shelf $ 344,022,708 $ 51,075,000 $ 97,075,000
------------------ ------------------ ------------------
TOTAL CAPITAL RESOURCES $ 438,479,111 $ 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 $25 million was
available on September 30, 2003.
(2) The available line of credit is subject to covenants that may restrict
amounts that can be borrowed.
4
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
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BALANCE SHEET
(Wholly Owned vs. JVs)
September 30, 2003
---------------------------------------------------------------------
PREIT PREIT's % Corporate Combined
Wholly Owned of JVs (3) TOTAL
---------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $ 1,143,102,938 $ 146,787,604 - $ 1,289,890,542
Multifamily Properties - - - -
Industrial Properties 2,504,211 - - 2,504,211
Construction In Progress 16,110,564 1,563,289 - 17,673,853
--------------- --------------- --------------- ---------------
TOTAL INVESTMENTS IN REAL ESTATE 1,161,717,713 148,350,893 - 1,310,068,606
Accumulated Depreciation (60,922,254) (36,454,134) - (97,376,388)
--------------- --------------- --------------- ---------------
Net Real Estate 1,100,795,459 111,896,759 - 1,212,692,218
--------------- --------------- --------------- ---------------
Advances to Partnerships and Joint Ventures - - 1,200,000 1,200,000
--------------- --------------- --------------- ---------------
1,100,795,459 111,896,759 1,200,000 1,213,892,218
--------------- --------------- --------------- ---------------
Allowance for Possible Losses -
--------------- --------------- --------------- ---------------
1,100,795,459 111,896,759 1,200,000 1,213,892,218
--------------- --------------- --------------- ---------------
Other Assets:
Cash and Cash Equivalents 10,042,912 5,113,326 28,356,725 43,512,963
Rents and Other Receivables 11,108,819 8,570,389 2,230,635 21,909,843
Intangible Assets 46,915,709 9,041,888 55,957,597
Deferred Costs, Prepaid Taxes & Exp. & Other Assets(1) 32,647,874 12,102,884 8,979,808 53,730,566
--------------- --------------- --------------- ---------------
TOTAL OTHER ASSETS 100,715,314 25,786,599 48,609,056 175,110,969
--------------- --------------- --------------- ---------------
TOTAL ASSETS 1,201,510,773 137,683,358 49,809,056 1,389,003,187
=============== =============== =============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 620,535,498 118,525,862 - 739,061,360
Bank Loans Payable - - - -
Acquisition Term Loan &Unsecured Line of Credit - - - -
Assets held for sale 915,292 36,458 - 951,750
Other Liabilities(2) 25,504,728 4,429,363 12,458,923 42,393,014
--------------- --------------- --------------- ---------------
TOTAL LIABILITIES 646,955,518 122,991,683 12,458,923 782,406,124
--------------- --------------- --------------- ---------------
Minority Interest 5,991,467 - 58,270,123 64,261,590
--------------- --------------- --------------- ---------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - 23,480,595 23,480,595
Capital Contributed in Excess of Par - - 407,738,529 407,738,529
Restricted Stock - - (3,901,106) (3,901,106)
Other Comprehensive Income - - (1,928,590) (1,928,590)
Retained Earnings (Distributions in
Excess of Net Income) - - 116,946,045 116,946,045
--------------- --------------- --------------- ---------------
TOTAL SHAREHOLDERS' EQUITY - - 542,335,473 542,335,473
--------------- --------------- --------------- ---------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 652,946,985 $ 122,991,683 $ 613,064,519 $ 1,389,003,187
=============== =============== =============== ===============
December 31, 2002
---------------------------------------------------------------------
PREIT PREIT's % Corporate Combined
Wholly Owned of JVs (3) 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
Intangible Assets 16,679,886 16,679,886
Deferred Costs, Prepaid Taxes & Exp. & Other Assets(1) 18,306,800 13,981,793 13,822,873 46,111,466
--------------- --------------- --------------- ---------------
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 119,229,707 11,570,293 - 130,800,000
Acquisition Term Loan &Unsecured Line of Credit - - - -
Assets held for sale - - - -
Other Liabilities(2) 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)
Retained Earnings (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
=============== =============== =============== ===============
September 30, 2002
---------------------------------------------------------------------
PREIT PREIT's % Corporate Combined
Wholly Owned of JVs (3) TOTAL
---------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $ 416,972,101 $ 197,652,779 - $ 614,624,880
Multifamily Properties 258,060,404 29,314,705 - 287,375,109
Industrial Properties 2,504,211 - - 2,504,211
Construction In Progress 20,368,671 1,549,224 - 21,917,895
--------------- --------------- --------------- ---------------
TOTAL INVESTMENTS IN REAL ESTATE 697,905,387 228,516,708 - 926,422,095
Accumulated Depreciation (122,830,103) (46,658,613) - (169,488,716)
--------------- --------------- --------------- ---------------
Net Real Estate 575,075,284 181,858,095 - 756,933,379
--------------- --------------- --------------- ---------------
Advances to Partnerships and Joint Ventures - - 418,851 418,851
--------------- --------------- --------------- ---------------
575,075,284 181,858,095 418,851 757,352,230
--------------- --------------- --------------- ---------------
Allowance for Possible Losses - - -
--------------- --------------- --------------- ---------------
575,075,284 181,858,095 418,851 757,352,230
--------------- --------------- --------------- ---------------
Other Assets:
Cash and Cash Equivalents 4,869,618 5,974,345 5,286,111 16,130,074
Rents and Other Receivables 6,706,233 8,035,546 2,409,979 17,151,758
Intangible Assets 16,679,886 16,679,886
Deferred Costs, Prepaid Taxes & Exp. & Other Assets(1) 17,086,911 14,264,376 11,084,716 42,436,003
--------------- --------------- --------------- ---------------
TOTAL OTHER ASSETS 28,662,762 28,274,267 35,460,692 92,397,721
--------------- --------------- --------------- ---------------
TOTAL ASSETS 603,738,046 210,132,362 35,879,543 849,749,951
=============== =============== =============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 301,994,045 176,919,931 - 478,913,976
Bank Loans Payable 111,429,707 9,070,293 120,500,000
Acquisition Term Loan &Unsecured Line of Credit - - - -
Assets held for sale - - - -
Other Liabilities(2) 13,879,717 7,139,609 10,414,992 31,434,318
--------------- --------------- --------------- ---------------
TOTAL LIABILITIES 427,303,469 193,129,833 10,414,992 630,848,294
--------------- --------------- --------------- ---------------
Minority Interest 126,715 - 31,755,163 31,881,878
--------------- --------------- --------------- ---------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - 16,602,759 16,602,759
Capital Contributed in Excess of Par - - 214,543,587 214,543,587
Restricted Stock - - (3,147,772) (3,147,772)
Other Comprehensive Income - - (3,486,703) (3,486,703)
Retained Earnings (Distributions in
Excess of Net Income) - - (37,492,092) (37,492,092)
--------------- --------------- --------------- ---------------
TOTAL SHAREHOLDERS' EQUITY - - 187,019,779 187,019,779
--------------- --------------- --------------- ---------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 427,430,184 $ 193,129,833 $ 229,189,934 $ 849,749,951
=============== =============== =============== ===============
(1) Deferred Costs, Prepaid Taxes and Expenses and Other Assets include Rents
and Other Receivables for Partnerships and Joint Ventures.
(2) For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and
Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses
and Other Liabilities.
(3) 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.
5
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
BALANCE SHEET (1)
(Line of Business) September 30, 2003
-----------------------------------------------------------------------------
Other
Retail Multifamily Properties Corporate Combined TOTAL
--------------- ------------- ------------- ------------- ---------------
ASSETS
Investments in Real Estate, at cost $ 1,289,890,542 $ - $ 20,178,064 $ - $ 1,310,068,606
=============== ============= ============= ============= ===============
Accumulated Depreciation (95,312,157) - (2,064,231) - (97,376,388)
=============== ============= ============= ============= ===============
Net Real Estate 1,194,578,385 - 18,113,833 - 1,212,692,218
=============== ============= ============= ============= ===============
Investments in PREIT-RUBIN
Advances to Partnerships and Joint Ventures - - - 1,200,000 1,200,000
Advances to PREIT-RUBIN
--------------- ------------- ------------- ------------- ---------------
1,194,578,385 - 18,113,833 1,200,000 1,213,892,218
--------------- ------------- ------------- ------------- ---------------
Allowance for Possible Losses - - - - -
--------------- ------------- ------------- ------------- ---------------
1,194,578,385 - 18,113,833 1,200,000 1,213,892,218
--------------- ------------- ------------- ------------- ---------------
Other Assets:
Cash 14,448,465 707,773 28,356,725 43,512,963
Intangible Assets 46,915,709 9,041,888 55,957,597
Other Assets, Net (2) 53,567,903 469,242 10,392,821 11,210,443 75,640,409
--------------- ------------- ------------- ------------- ---------------
Total Other Assets 114,932,077 1,177,015 10,392,821 48,609,056 175,110,969
--------------- ------------- ------------- ------------- ---------------
TOTAL ASSETS 1,309,510,462 1,177,015 28,506,654 49,809,056 1,389,003,187
=============== ============= ============= ============= ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 739,061,360 - - - 739,061,360
Bank Loans Payable - - -
Acquisition Term Loan & Unsecured
Line of Credit - - - - -
Assets held for sale - 951,750 - - 951,750
Other Liabilities (3) 27,237,935 2,696,156 12,458,923 42,393,014
--------------- ------------- ------------- ------------- ---------------
TOTAL LIABILITIES 766,299,295 951,750 2,696,156 12,458,923 782,406,124
--------------- ------------- ------------- ------------- ---------------
Minority Interest 5,991,467 - - 58,270,123 64,261,590
--------------- ------------- ------------- ------------- ---------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - - 23,480,595 23,480,595
Capital Contributed in Excess of Par - - - 407,738,529 407,738,529
Restricted Stock - - - (3,901,106) (3,901,106)
Other Comprehensive Income - - - (1,928,590) (1,928,590)
Retained Earnings (Distributions in
Excess of Net Income) - - - 116,946,045 116,946,045
--------------- ------------- ------------- ------------- ---------------
TOTAL SHAREHOLDERS' EQUITY - - - 542,335,473 542,335,473
--------------- ------------- ------------- ------------- ---------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 772,290,762 $ 951,750 $ 2,696,156 $ 613,064,519 $ 1,389,003,187
=============== ============= ============= ============= ===============
BALANCE SHEET (1)
(Line of Business) December 31, 2002
-----------------------------------------------------------------------------
Other
Retail Multifamily Properties Corporate Combined 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
Intangible Assets 16,679,886 16,679,886
Other Assets, Net (2) 42,129,659 9,098,594 29,449 18,218,843 69,476,545
--------------- ------------- ------------- ------------- ---------------
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 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 (3) 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)
Retained Earnings (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) September 30, 2002
-----------------------------------------------------------------------------
Other
Retail Multifamily Properties Corporate Combined TOTAL
--------------- ------------- ------------- ------------- ---------------
ASSETS
Investments in Real Estate, at cost $ 614,624,880 $ 287,375,109 $ 24,422,106 $ - $ 926,422,095
=============== ============= ============= ============= ===============
Accumulated Depreciation (74,726,868) (92,749,150) (2,012,698) - (169,488,716)
=============== ============= ============= ============= ===============
Net Real Estate 539,898,012 194,625,959 22,409,408 - 756,933,379
=============== ============= ============= ============= ===============
Investments in PREIT-RUBIN
Advances to Partnerships and Joint Ventures - - - 418,851 418,851
Advances to PREIT-RUBIN
--------------- ------------- ------------- ------------- ---------------
539,898,012 194,625,959 22,409,408 418,851 757,352,230
--------------- ------------- ------------- ------------- ---------------
Allowance for Possible Losses - - - - -
--------------- ------------- ------------- ------------- ---------------
539,898,012 194,625,959 22,409,408 418,851 757,352,230
--------------- ------------- ------------- ------------- ---------------
Other Assets:
Cash 8,292,498 2,557,277 (5,812) 5,286,111 16,130,074
Intangible Assets 16,679,886 16,679,886
Other Assets, Net (2) 37,988,110 8,071,073 33,883 13,494,695 59,587,761
--------------- ------------- ------------- ------------- ---------------
Total Other Assets 46,280,608 10,628,350 28,071 35,460,692 92,397,721
--------------- ------------- ------------- ------------- ---------------
TOTAL ASSETS 586,178,620 205,254,309 22,437,479 35,879,543 849,749,951
=============== ============= ============= ============= ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 281,212,563 197,701,413 - - 478,913,976
Bank Loans Payable 87,952,970 - 32,547,030 120,500,000
Acquisition Term Loan & Unsecured
Line of Credit - - - - -
Assets held for sale - - - - -
Other Liabilities (3) 12,095,668 8,776,694 146,964 10,414,992 31,434,318
--------------- ------------- ------------- ------------- ---------------
TOTAL LIABILITIES 381,261,201 206,478,107 32,693,994 10,414,992 630,848,294
--------------- ------------- ------------- ------------- ---------------
Minority Interest 126,715 - 31,755,163 31,881,878
--------------- ------------- ------------- ------------- ---------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - - 16,602,759 16,602,759
Capital Contributed in Excess of Par - - - 214,543,587 214,543,587
Restricted Stock - - - (3,147,772) (3,147,772)
Other Comprehensive Income - - - (3,486,703) (3,486,703)
Retained Earnings (Distributions in
Excess of Net Income) - - - (37,492,092) (37,492,092)
--------------- ------------- ------------- ------------- ---------------
TOTAL SHAREHOLDERS' EQUITY - - - 187,019,779 187,019,779
--------------- ------------- ------------- ------------- ---------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 381,387,916 $ 206,478,107 $ 32,693,994 $ 229,189,934 $ 849,749,951
=============== ============= ============= ============= ===============
(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) 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.
6
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
INCOME STATEMENT (1)(2)
QUARTERLY COMPARISON
(Wholly Owned vs. JV) Q3 03
(3 months ended 9/30/03)
---------------------------------------------------------------------------
Wholly Owned JVs Corporate Combined
TOTAL
-------------------- ------------------ ----------------- -------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 29,575,266 $ 6,479,632 $ - 36,054,898
Straight-Lining of Base Rents 685,050 80,188 - 765,238
Percentage Rents 469,398 75,212 - 544,610
Lease Termination 29,393 - - 29,393
Expense Recoveries & Other Income 14,205,933 2,321,149 - 16,527,082
-------------------- ------------------ ----------------- -------------
TOTAL REVENUES 44,965,040 83% 8,956,181 17% $ - 0% 53,921,221
-------------------- ------------------ ----------------- -------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 13,387,558 2,480,268 - 15,867,826
Real Estate Taxes 4,768,784 807,631 - 5,576,415
Minority Interest in Properties 310,751 - 310,751
-------------------- ------------------ ----------------- -------------
TOTAL EXPENSES 18,467,093 85% 3,287,899 15% - 0% 21,754,992
-------------------- ------------------ ----------------- -------------
NET OPERATING INCOME 26,497,947 82% 5,668,282 18% - 0% 32,166,229
==================== ================== ================= =============
OTHER INCOME (EXPENSES)
Management Company Revenue - - 1,972,607 1,972,607
Interest Income - - 217,023 217,023
General & Administrative:
Corporate Payroll - - (3,707,416) (3,707,416)
Other G&A Expenses - - (4,615,793) (4,615,793)
-------------------- ------------------ ----------------- -------------
Earnings before interest expenses, taxes,
depreciation and amortization 26,497,947 102% 5,668,282 22% (6,133,579) -24% 26,032,650
-------------------- ------------------ ----------------- -------------
Interest Expense (3) (8,314,940) (3,150,646) - (11,465,586)
Depreciation & Amortization (9,191,800) (1,034,646) - (10,226,446)
-------------------- ------------------ ----------------- -------------
TOTAL OTHER INCOME (EXPENSES) (17,506,740) (4,185,292) - (21,692,032)
-------------------- ------------------ ----------------- -------------
Gains (losses) on sales of interests in Real Estate - 6,228,839 - 6,228,839
-------------------- ------------------ ----------------- -------------
Income before Minority Interest 8,991,207 7,711,829 (6,133,579) 10,569,457
-------------------- ------------------ ----------------- -------------
Minority Interest of O.P. Unitholders - - (989,253) (989,253)
-------------------- ------------------ ----------------- -------------
Income from Operations 8,991,207 7,711,829 (7,122,832) 9,580,204
-------------------- ------------------ ----------------- -------------
Discontinued Operations:
Income from Disposed Real Estate - -
Minority Interest of O.P. Unitholders (2,382,461) (2,382,461)
Gain (losses) on Disposition of Discontinued
Operations 27,725,759 27,725,759
-------------------- ------------------ ----------------- -------------
TOTAL DISCONTINUED OPERATIONS 27,725,759 - (2,382,461) 25,343,298
-------------------- ------------------ ----------------- -------------
Extraordinary item(Loss on early extinguishment
of debt) - -
-------------------- ------------------ ----------------- -------------
NET INCOME $ 36,716,966 105% $ 7,711,829 22% $ (9,505,293) -27% $ 34,923,502
==================== ================== ================= =============
Q3 02
(3 months ended 9/30/02)
------- ---------------------------------------------------------------------
TOTAL % Combined
CHANGE Wholly Owned JVs Corporate TOTAL
------- ------------------ ---------------- ---------------- ------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) 13.4% $ 23,747,649 $ 8,038,742 $ - $ 31,786,391
Straight-Lining of Base Rents 189.6% 182,922 81,350 - 264,272
Percentage Rents 33.5% 333,666 74,135 - 407,801
Lease Termination -93.1% 426,234 - - 426,234
Expense Recoveries & Other Income 133.9% 4,399,433 2,666,190 - 7,065,623
------- ------------------ ---------------- ----------------- ------------
TOTAL REVENUES 35.0% 29,089,904 73% 10,860,417 27% $ - 0% 39,950,321
------- ------------------ ---------------- ----------------- ------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 55.2% 7,393,021 2,831,965 - 10,224,986
Real Estate Taxes 71.8% 2,352,479 894,273 - 3,246,752
Minority Interest in Properties
------- ------------------ ---------------- ----------------- ------------
TOTAL EXPENSES 61.5% 9,745,500 72% 3,726,238 28% - 0% 13,471,738
------- ------------------ ---------------- ----------------- ------------
NET OPERATING INCOME 21.5% 19,344,404 73% 7,134,179 27% - 0% 26,478,583
======= ================== ================ ================= ============
OTHER INCOME (EXPENSES)
Management Company Revenue -19.3% - - 2,443,592 2,443,592
Interest Income 50.7% - - 144,042 144,042
General & Administrative:
Corporate Payroll 0.3% - - (3,695,921) (3,695,921)
Other G&A Expenses 83.4% - - (2,516,173) (2,516,173)
------- ------------------ ---------------- ----------------- ------------
Earnings before interest expenses, taxes,
depreciation and amortization 13.9% 19,344,404 85% 7,134,179 31% (3,624,460) -16% 22,854,123
------- ------------------ ---------------- ----------------- ------------
Interest Expense (3) 8.2% (6,969,540) (3,630,872) - (10,600,412)
Depreciation & Amortization 39.2% (5,375,512) (1,971,087) (7,346,599)
------- ------------------ ---------------- ----------------- ------------
TOTAL OTHER INCOME (EXPENSES) 20.9% (12,345,052) (5,601,959) - (17,947,011)
------- ------------------ ---------------- ----------------- ------------
Gains (losses) on sales of interests in Real Estate N/A - - -
------- ------------------ ---------------- ----------------- ------------
Income before Minority Interest 115.4% 6,999,352 1,532,220 (3,624,460) 4,907,112
------- ------------------ ---------------- ----------------- ------------
Minority Interest of O.P. Unitholders 297.4% - - (248,916) (248,916)
------- ------------------ ---------------- ----------------- ------------
Income from Operations 105.7% 6,999,352 1,532,220 (3,873,376) 4,658,196
------- ------------------ ---------------- ----------------- ------------
Discontinued Operations:
Income from Disposed Real Estate N/A 71,772 - - 71,772
Minority Interest of O.P. Unitholders N/A (637,292) (637,292)
Gain (losses) on Disposition of Discontinued
Operations N/A 4,085,164 4,085,164
------- ------------------ ---------------- ----------------- ------------
TOTAL DISCONTINUED OPERATIONS N/A 4,156,936 (637,292) 3,519,644
------- ------------------ ---------------- ----------------- ------------
Extraordinary item(Loss on early extinguishment
of debt) N/A - - - -
------- ------------------ ---------------- ----------------- ------------
NET INCOME 327.1% $ 11,156,288 136% $ 1,532,220 19% $ (4,510,668) -55% $ 8,177,840
======= ================== ================ ================= ============
(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 $324,187 not included in the quarter ended 9/30/03 and $374,570 not
included in the quarter ended 9/30/02.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
7
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
INCOME STATEMENT (1) (2)
QUARTERLY COMPARISON
(Line of Business)
Q3 03
(3 months ended 9/30/03)
------------------------------------------------------------------------------------------
OTHER Combined
RETAIL MULTIFAMILY PROPERTIES CORPORATE TOTAL
------------------- ---------------- ------------- ------------------ -------------
REAL ESTATE OPERATING REVENUES
Base Rents $ 34,709,773 $ 1,336,316 $ 85,156 $ - $ 36,131,245
Less Vacancies and Concessions (76,347) - - (76,347)
Straight-Lining of Base Rents 765,238 - - - 765,238
Percentage Rents 544,610 - - - 544,610
Lease Termination 27,129 2,264 - - 29,393
Expense Recoveries and Other Income 16,455,114 69,343 2,625 - 16,527,082
------------------- ---------------- ------------- ------------------ -------------
TOTAL REVENUES 52,501,864 97% 1,331,576 2% 87,781 0% - - 53,921,221
------------------- ---------------- ------------- ------------------ -------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 15,228,530 636,314 2,982 - 15,867,826
Real Estate Taxes 5,499,341 76,172 902 - 5,576,415
Minority Interest in Properties 310,751 - - - 310,751
------------------- ---------------- ------------- ------------------ -------------
TOTAL EXPENSES 21,038,622 97% 712,486 3% 3,884 0% - - 21,754,992
=================== ================ ============= ================== =============
NET OPERATING INCOME 31,463,242 98% 619,090 2% 83,897 0% - - 32,166,229
=================== ================ ============= ================== =============
TOTAL OTHER INCOME (EXPENSES)
Management Company Revenue - - - 1,972,607 1,972,607
Interest Income - - - 217,023 217,023
General and Administrative:
Corporate Payroll - - - (3,707,416) (3,707,416)
Other General & Administrative - - - (4,615,793) (4,615,793)
=================== ================ ============= ================== =============
Earnings before interest expenses,
taxes, depreciation and amortization 31,463,242 121% 619,090 2% 83,897 0% (6,133,579) -24% 26,032,650
=================== ================ ============= ================== =============
Interest Expense (3) (11,243,044) (222,542) - - (11,465,586)
Depreciation & Amortization (10,213,658) - (12,788) - (10,226,446)
------------------- ---------------- ------------- ------------------ -------------
TOTAL OTHER INCOME (EXPENSES) (21,456,702) (222,542) (12,788) - (21,692,032)
------------------- ---------------- ------------- ------------------ -------------
Gains(losses) on sales of interests in
Real Estate - 6,228,839 - - 6,228,839
------------------- ---------------- ------------- ------------------ -------------
Income before Minority Interest 10,006,540 6,625,387 71,109 (6,133,579) 10,569,457
------------------- ---------------- ------------- ------------------ -------------
Minority Interest of O.P. Unitholders - - - (989,253) (989,253)
------------------- ---------------- ------------- ------------------ -------------
Income from Operations 10,006,540 6,625,387 71,109 (7,122,832) 9,580,204
------------------- ---------------- ------------- ------------------ -------------
Discontinued Operations:
Income from Disposed Real Estate - - - - -
Minority Interest of O.P. Unitholders (2,382,461) (2,382,461)
Gain (losses) on Disposition of
Discontinued Operations 27,725,759 27,725,759
------------------- ---------------- ------------- ------------------ -------------
TOTAL DISCONTINUED OPERATIONS - 27,725,759 - (2,382,461) 25,343,298
------------------- ---------------- ------------- ------------------ -------------
Extraordinary item (Loss on early
extinguishment of debt) - - - -
------------------- ---------------- ------------- ------------------ -------------
NET INCOME $ 10,006,540 29% $ 34,351,146 98% $ 71,109 0% $ (9,505,293) -27% $ 34,923,502
=================== ================ ============= ================== =============
TOTAL %
CHANGE
-------
REAL ESTATE OPERATING REVENUES
Base Rents 9.2%
Less Vacancies and Concessions -94.1%
Straight-Lining of Base Rents 189.6%
Percentage Rents 33.5%
Lease Termination -93.1%
Expense Recoveries and Other Income 133.9%
-------
TOTAL REVENUES 35.0%
-------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 55.2%
Real Estate Taxes 71.8%
Minority Interest in Properties
-------
TOTAL EXPENSES 61.5%
=======
NET OPERATING INCOME 21.5%
=======
TOTAL OTHER INCOME (EXPENSES)
Management Company Revenue -19.3%
Interest Income 50.7%
General and Administrative:
Corporate Payroll 0.3%
Other General & Administrative 83.4%
=======
Earnings before interest expenses,
taxes, depreciation and amortization 13.9%
=======
Interest Expense (3) 8.2%
Depreciation & Amortization 39.2%
-------
TOTAL OTHER INCOME (EXPENSES) 20.9%
-------
Gains(losses) on sales of interests
in Real Estate N/A
-------
Income before Minority Interest 17.5%
-------
Minority Interest of O.P. Unitholders -297.4%
-------
Income from Operations -9.6%
-------
Discontinued Operations:
Income from Disposed Real Estate N/A
Minority Interest of O.P. Unitholders N/A
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 327.1%
=======
Q3 02
(3 months ended 9/30/02)
-------------------------------------------------------------------------------------------
OTHER Combined
RETAIL MULTIFAMILY PROPERTIES CORPORATE TOTAL
------------------- ----------------- ------------- ------------------ -------------
REAL ESTATE OPERATING REVENUES
Base Rents $ 18,103,363 $ 14,888,499 $ 83,421 $ - $ 33,075,283
Less Vacancies and Concessions - (1,288,892) - - (1,288,892)
Straight-Lining of Base Rents 264,272 - - - 264,272
Percentage Rents 407,801 - - - 407,801
Lease Termination 345,048 81,186 - 426,234
Expense Recoveries and Other Income 6,328,771 737,415 (563) - 7,065,623
------------------- ----------------- ------------ ------------------ -------------
TOTAL REVENUES 25,449,255 64% 14,418,208 36% 82,858 0% - - 39,950,321
------------------- ----------------- ------------ ------------------ -------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 5,324,904 4,890,938 9,144 - 10,224,986
Real Estate Taxes 1,877,789 1,368,066 897 - 3,246,752
Minority Interest in Properties
------------------- ----------------- ------------ ------------------ -------------
TOTAL EXPENSES 7,202,693 53% 6,259,004 46% 10,041 0% - - 13,471,738
=================== ================= ============ ================== =============
NET OPERATING INCOME 18,246,562 69% 8,159,204 31% 72,817 0% - - 26,478,583
=================== ================= ============ ================== =============
TOTAL OTHER INCOME (EXPENSES)
Management Company Revenue - - - 2,443,592 2,443,592
Interest Income - - - 144,042 144,042
General and Administrative: - -
Corporate Payroll - - - (3,695,921) (3,695,921)
Other General & Administrative - - - (2,516,173) (2,516,173)
=================== ================= ============ ================== =============
Earnings before interest expenses,
taxes, depreciation and amortization 18,246,562 80% 8,159,204 36% 72,817 0% (3,624,460) -16% 22,854,123
=================== ================= ============ ================== =============
Interest Expense (3) (7,075,154) (3,525,258) - - (10,600,412)
Depreciation & Amortization (5,021,188) (2,312,496) (12,915) - (7,346,599)
------------------- ----------------- ------------ ------------------ -------------
TOTAL OTHER INCOME (EXPENSES) (12,096,342) (5,837,754) (12,915) - (17,947,011)
------------------- ----------------- ------------ ------------------ -------------
Gains(losses) on sales of interests in
Real Estate 4,085,164 - - - 4,085,164
------------------- ----------------- ------------ ------------------ -------------
Income before Minority Interest 10,235,384 2,321,450 59,902 (3,624,460) 8,992,276
------------------- ----------------- ------------ ------------------ -------------
Minority Interest of O.P. Unitholders - - - (248,916) (248,916)
------------------- ----------------- ------------ ------------------ -------------
Income from Operations 10,235,384 2,321,450 59,902 (3,873,376) 8,743,360
------------------- ----------------- ------------ ------------------ -------------
Discontinued Operations:
Income from Disposed Real Estate 71,772 - - - 71,772
Minority Interest of O.P. Unitholders (637,292) (637,292)
Gain (losses) on Disposition of
Discontinued Operations - -
------------------- ----------------- ------------ ------------------ -------------
TOTAL DISCONTINUED OPERATIONS 71,772 - - (637,292) (565,520)
------------------- ----------------- ------------ ------------------ -------------
Extraordinary item (Loss on early
extinguishment of debt) - - - - -
------------------- ----------------- ------------ ------------------ -------------
NET INCOME $ 10,307,156 126% $ 2,321,450 28% $ 59,902 1% $ (4,510,668) -55% $ 8,177,840
=================== ================= ============ ================== =============
(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 $324,187 not included in the quarter ended 9/30/03 and $374,570 not
included in the quarter ended 9/30/02.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
8
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
RETAIL INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Property Status)
Q3 03
(3 months ended 9/30/03)
-------------------------------------------------
Combined
TOTAL WO JVs
------------- ------------------ ------------
R.E. OPERATING REVENUES
Base Rents $ 34,709,773 $ 28,561,011 $ 6,148,762
Straight-Lining of Base Rents 765,238 685,050 80,188
Percentage Rents 544,610 469,398 75,212
Lease Termination and Other Income 27,129 27,129 -
Exp. Recoveries and Other Income 16,455,114 14,141,781 2,313,333
------------- ------------------ ----------------
TOTAL REVENUES 52,501,864 43,884,369 84% 8,617,495 16%
------------- ------------------ ----------------
R.E. OPERATING EXPENSES
Operating and Maintenance 15,228,530 12,935,418 2,293,112
Real Estate Taxes 5,499,341 4,725,346 773,995
Minority Interest in Properties 310,751 310,751 -
------------- ------------------ ----------------
Total Operating Expenses 21,038,622 17,971,515 85% 3,067,107 15%
============= ================== ================
NET OPERATING INCOME 31,463,242 25,912,854 82% 5,550,388 18%
============= ================== ================
OTHER INCOME (EXP.)
Interest Expense (11,243,044) (8,145,244) (3,097,800)
Depreciation & Amortization (10,213,658) (9,179,012) (1,034,646)
------------- ------------------ ---------------
TOTAL OTHER INCOME (EXP.) (21,456,702) (17,324,256) (4,132,446)
------------- ------------------ ---------------
Gains (losses) on sales of int. in R.E - - -
------------- ------------------ ---------------
Income before Minority Int. 10,006,540 8,588,598 1,417,942
------------- ------------------ ---------------
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 $ 10,006,540 $ 8,588,598 86% $ 1,417,942 14%
============= ================== ================
Q3 02
(3 months ended 9/30/02)
------------------------------------------------------
% Change % Change % Change Combined
TOTAL WO JVs Total WO JVs
------- ------- ------- ------------- ----------------- ------------------
R.E. OPERATING REVENUES
Base Rents 91.7% 144.9% -4.5% $ 18,103,363 $ 11,662,340 $ 6,441,023
Straight-Lining of Base Rents 189.6% 274.5% -1.4% 264,272 182,922 81,350
Percentage Rents 33.5% 40.7% 1.5% 407,801 333,666 74,135
Lease Termination and Other Income N/A N/A N/A 345,048 345,048 -
Exp. Recoveries and Other Income 160.0% 279.6% -11.1% 6,328,771 3,725,484 2,603,287
------- ------- ------- ------------- ----------------- ------------------
TOTAL REVENUES 106.3% 170.1% -6.3% 25,449,255 16,249,460 64% 9,199,795 36%
------- ------- ------- ------------- ----------------- ------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 186.0% 311.2% 5.2% 5,324,904 3,145,556 2,179,348
Real Estate Taxes 192.9% 316.8% 4.0% 1,877,789 1,133,766 744,023
Minority Interest in Properties N/A N/A N/A - - -
------- ------- ------- ------------- ----------------- ------------------
Total Operating Expenses 192.1% 320.0% 4.9% 7,202,693 4,279,322 59% 2,923,371 41%
======= ======= ======= ============= ================= ==================
NET OPERATING INCOME 72.4% 116.5% -11.6% 18,246,562 11,970,138 66% 6,276,424 34%
======= ======= ======= ============= ================= ==================
OTHER INCOME (EXP.)
Interest Expense 58.9% 110.2% -3.2% (7,075,154) (3,874,220) (3,200,934)
Depreciation & Amortization 103.4% 179.4% -40.4% (5,021,188) (3,285,130) (1,736,058)
------- ------- ------- ------------- ----------------- ------------------
TOTAL OTHER INCOME (EXP.) 77.4% 142.0% -16.3% (12,096,342) (7,159,350) (4,936,992)
------- ------- ------- ------------- ----------------- ------------------
Gains (losses) on sales of int. in R.E N/A N/A N/A 4,085,164 4,085,164 -
------- ------- ------- ------------- ----------------- ------------------
Income before Minority Int. -2.2% -3.5% 5.9% 10,235,384 8,895,952 1,339,432
------- ------- ------- ------------- ----------------- ------------------
Discontinued Operations: -
------- ------- ------- ------------- ----------------- ------------------
Income from Disposed Real Estate N/A N/A N/A 71,772 71,772
------- ------- ------- ------------- ----------------- ------------------
Gain (losses) on Disposition of
Discontinued Operations N/A N/A N/A
------- ------- ------- ------------- ----------------- ------------------
TOTAL DISCONTINUED OPERATIONS N/A N/A N/A 71,772 71,772 -
------- ------- ------- ------------- ----------------- ------------------
Extraordinary item (Loss on early
extinguishments of debt) N/A N/A N/A - - -
------- ------- ------- ------------- ----------------- ------------------
NET INCOME -2.9% -4.2% 5.9% $ 10,307,156 $ 8,967,724 87% $ 1,339,432 13%
======= ======= ======= ============= ================= ==================
SAME STORE COMPARISON
Q3 03
(3 months ended 9/30/03)
---------------------------------------------------------------------------- ---------
Combined
Total (2) SAME NEW REDEV DIVEST
------------- ----------------- ------------------- ------------------ ---------
Base Rents $ 34,709,773 $ 13,889,446 $ 17,082,262 $ 3,738,065 $ -
Straight-Lining of Base Rents 765,238 279,677 458,287 27,274 -
Percentage Rents 544,610 230,443 152,810 161,357 -
Lease Termination 27,129 15,000 12,129 - -
Exp. Recoveries and Other Income 16,455,114 4,063,238 10,755,241 1,636,635 -
------------- ----------------- ------------------- ------------------ ---------
TOTAL REVENUES 52,501,864 18,477,804 35% 28,460,729 54% 5,563,331 11% - 0%
------------- ----------------- ------------------- ------------------ ---------
R.E. OPERATING EXPENSES
Operating and Maintenance 15,228,530 3,405,972 10,310,539 1,512,019 -
Real Estate Taxes 5,499,341 1,529,005 3,557,871 412,465 -
310,751 - 310,751 -
------------- ----------------- ------------------- ------------------ ---------
Total Operating Expenses 21,038,622 4,934,977 23% 14,179,161 67% 1,924,484 9% - 0%
============= ================= =================== ================== =========
NET OPERATING INCOME 31,463,242 13,542,827 43% 14,281,568 45% 3,638,847 12% - 0%
============= ================= =================== ================== =========
OTHER INCOME (EXP.)
Interest Expense (11,243,044) (5,210,423) (4,814,545) (1,218,076) -
Depreciation & Amortization (10,213,658) (3,578,472) (5,526,957) (1,108,229) -
------------- ----------------- ------------------- ------------------ ---------
TOTAL OTHER INCOME (EXP.) (21,456,702) (8,788,895) (10,341,502) (2,326,305) -
------------- ----------------- ------------------- ------------------ ---------
Gain (losses) on sales of int. in R.E. - - - -
------------- ----------------- ------------------- ------------------ ---------
Income before Minority Int. 10,006,540 4,753,932 3,940,066 1,312,542 -
------------- ----------------- ------------------- ------------------ ---------
Discontinued Operations:
Income from Disposed Real Estate - - - - -
Gain (losses) on Disposition of
Discontinued Operations - -
------------- ----------------- ------------------- ------------------ ---------
TOTAL DISCONTINUED OPERATIONS - - -
------------- ----------------- ------------------- ------------------ ---------
Extraordinary item (Loss on
early extinguishment of debt) - - - - -
------------- ----------------- ------------------- ------------------ ---------
NET INCOME $ 10,006,540 $ 4,753,932 48% $ 3,940,066 39% $ 1,312,542 13% $ - 0%
============= ================= =================== ================== =========
% Change
Same Store
----------
Base Rents 1.3%
Straight-Lining of Base Rents 23.7%
Percentage Rents -5.4%
Lease Termination N/A
Exp. Recoveries and Other Income 5.0%
----------
TOTAL REVENUES 0.5%
----------
R.E. OPERATING EXPENSES
Operating and Maintenance 8.4%
Real Estate Taxes 9.9%
N/A
----------
Total Operating Expenses 8.9%
----------
NET OPERATING INCOME -2.2%
==========
OTHER INCOME (EXP.)
Interest Expense 1.6%
Depreciation & Amortization 0.3%
----------
TOTAL OTHER INCOME (EXP.) 1.0%
----------
Gain (losses) on sales of int. in R.E. N/A
----------
Income before Minority Int. -7.8%
----------
Discontinued Operations:
Income from Disposed Real Estate N/A
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 -7.8%
==========
Q3 02
(3 months ended 9/30/02)
---------------------------------------------------------------------------
Combined
TOTAL(2) SAME NEW REDEV DIVEST
------------- ----------------- ------------------ ------------------ -----------
Base Rents $ 18,103,363 $ 13,704,730 $ 933,797 $ 3,464,836 $ 116,209
Straight-Lining of Base Rents 264,272 226,156 16,140 21,976 -
Percentage Rents 407,801 243,592 35 164,174 -
Lease Termination 345,048 341,250 - 3,798 -
Exp. Recoveries and Other Income 6,328,771 3,871,082 822,315 1,635,374 (1,107)
------------- ----------------- ------------------ ------------------ -----------
TOTAL REVENUES 25,449,255 18,386,810 72% 1,772,287 7% 5,290,158 21% 115,102
------------- ----------------- ------------------ ------------------ -----------
R.E. OPERATING EXPENSES
Operating and Maintenance 5,324,904 3,140,663 596,166 1,588,075 (41,170)
Real Estate Taxes 1,877,789 1,391,637 132,165 353,987 (5,006)
- - - - -
------------- ----------------- ------------------ ------------------ -----------
Total Operating Expenses 7,202,693 4,532,300 63% 728,331 10% 1,942,062 27% (46,176)
============= ================= ================== ================== ===========
NET OPERATING INCOME 18,246,562 13,854,510 76% 1,043,956 6% 3,348,096 18% 161,278
============= ================= ================== ================== ===========
OTHER INCOME (EXP.)
Interest Expense (7,075,154) (5,130,767) (700,071) (1,244,316) (53,022)
Depreciation & Amortization (5,021,188) (3,566,870) (433,948) (1,020,370) (36,484)
------------- ----------------- ------------------ ------------------ -----------
TOTAL OTHER INCOME (EXP.) (12,096,342) (8,697,637) (1,134,019) (2,264,686) (89,506)
------------- ----------------- ------------------ ------------------ -----------
Gain (losses) on sales of int. in R.E. 4,085,164 - - - 4,085,164
------------- ----------------- ------------------ ------------------ -----------
Income before Minority Int. 10,235,384 5,156,873 (90,063) 1,083,410 4,156,936
------------- ----------------- ------------------ ------------------ -----------
Discontinued Operations:
Income from Disposed Real Estate 71,772 - - - -
Gain (losses) on Disposition of
Discontinued Operations
------------- ----------------- ------------------ ------------------ -----------
TOTAL DISCONTINUED OPERATIONS 71,772 4,156,936
------------- ----------------- ------------------ ------------------ -----------
Extraordinary item (Loss on
early extinguishment of debt) - - - -
------------- ----------------- ------------------ ------------------ -----------
NET INCOME $ 10,307,156 $ 5,156,873 50% $ (90,063) -1% $ 1,083,410 11% $ 4,156,936
============= ================= ================== ================== ===========
(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.
9
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
RETAIL INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Property Status)
Q3 03
(3 months ended 9/30/03)
-------------------------------------------------------------------------
Combined
Total Enclosed Mail Power Center Strip Center
------------- ------------------ ----------------- ----------------
R.E. OPERATING REVENUES
Base Rents $ 34,709,773 $ 26,583,847 $ 6,579,724 $ 1,546,202
Straight-Lining of Base Rents 765,238 577,623 162,538 25,077
Percentage Rents 544,610 483,902 60,708 -
Lease Termination and Other Income 27,129 27,129 - -
Exp. Recoveries and Other Income 16,455,114 14,814,869 1,184,031 456,214
------------- ------------------ ----------------- ----------------
TOTAL REVENUES 52,501,864 42,487,370 81% 7,987,001 15% 2,027,493 4%
------------- ------------------ ----------------- ----------------
R.E. OPERATING EXPENSES
Operating and Maintenance 15,228,530 14,161,518 758,724 308,288
Real Estate Taxes 5,499,341 4,580,098 719,987 199,256
Minority Interest in Properties 310,751 310,751 - -
------------- ------------------ ----------------- ----------------
Total Operating Expenses 21,038,622 19,052,367 91% 1,478,711 7% 507,544 2%
============= ================== ================= ================
NET OPERATING INCOME 31,463,242 23,435,003 74% 6,508,290 21% 1,519,949 5%
============= ================== ================= ================
OTHER INCOME (EXP.)
Interest Expense (11,243,044) (8,610,780) (2,594,953) (37,311)
Depreciation & Amortization (10,213,658) (7,860,605) (1,919,598) (433,455)
------------- ------------------ ----------------- ----------------
TOTAL OTHER INCOME (EXP.) (21,456,702) (16,471,385) (4,514,551) (470,766)
------------- ------------------ ----------------- ----------------
Gains(losses) on sales of int. in R.E. - - - -
------------- ------------------ ----------------- ----------------
Income before Minority Int. 10,006,540 6,963,618 1,993,739 1,049,183
------------- ------------------ ----------------- ----------------
Discontinued Operations:
------------- ------------------ ----------------- ----------------
Income from Disposed Real Estate - - - -
------------- ------------------ ----------------- ----------------
Gain (losses) on Disposition of
Discontinued Operations -
------------- ------------------ ----------------- ----------------
TOTAL DISCONTINUED OPERATIONS - - - -
------------- ------------------ ----------------- ----------------
Extraordinary item (Loss on
early extinguishment of debt) - - - -
------------- ------------------ ----------------- ----------------
NET INCOME $ 10,006,540 $ 6,963,618 70% $ 1,993,739 20% $ 1,049,183 10%
============= ================== ================= ================
% Change % Change % Change % Change
TOTAL Enclosed Mall Power Center Strip Center
--------- ------------- ------------ ------------
R.E. OPERATING REVENUES
Base Rents 91.7% 158.2% 2.3% 12.6%
Straight-Lining of Base Rents 189.6% 242.9% 67.1% -1856.1%
Percentage Rents 33.5% 44.9% -16.8% N/A
Lease Termination and Other Income N/A N/A N/A N/A
Exp. Recoveries and Other Income 160.0% 203.9% 7.4% 30.0%
--------- ------------- ------------ ------------
TOTAL REVENUES 106.3% 171.0% -0.8% 17.6%
--------- ------------- ------------ ------------
R.E. OPERATING EXPENSES
Operating and Maintenance 186.0% 224.5% 11.5% 10.0%
Real Estate Taxes 192.9% 341.4% 8.5% 12.9%
Minority Interest in Properties N/A N/A N/A N/A
--------- ------------- ------------ ------------
Total Operating Expenses 192.1% 252.7% 10.0% 11.2%
========= ============= ============ ============
NET OPERATING INCOME 72.4% 128.1% -2.9% 19.9%
========= ============= ============ ============
OTHER INCOME (EXP.)
Interest Expense 58.9% 121.4% -15.4% -68.6%
Depreciation & Amortization 103.4% 181.1% 3.7% 16.1%
--------- ------------- ------------ ------------
TOTAL OTHER INCOME (EXP.) 77.4% 146.4% -8.2% -4.3%
--------- ------------- ------------ ------------
Gains(losses) on sales of int. in R.E. N/A N/A N/A N/A
--------- ------------- ------------ ------------
Income before Minority Int. -2.2% 94.0% 11.7% -78.4%
--------- ------------- ------------ ------------
Discontinued Operations:
--------- ------------- ------------ ------------
Income from Disposed Real Estate -100.0% N/A N/A N/A
--------- ------------- ------------ ------------
Gain (losses) on Disposition of
Discontinued Operations N/A N/A N/A N/A
--------- ------------- ------------ ------------
TOTAL DISCONTINUED OPERATIONS N/A N/A N/A N/A
--------- ------------- ------------ ------------
Extraordinary item (Loss on
early extinguishment of debt) N/A N/A N/A N/A
--------- ------------- ------------ ------------
NET INCOME -2.9% 94.0% 11.7% -78.7%
========= ============= ============ ============
Q3 02
(3 months ended 9/30/02)
--------------------------------------------------------------------------
Combined
TOTAL Enclosed Mall Power Center Strip Center
-------------- ----------------- ------------------ ----------------
R.E. OPERATING REVENUES
Base Rents $ 18,103,363 $ 10,295,239 $ 6,434,487 $ 1,373,637
Straight-Lining of Base Rents 264,272 168,429 97,271 (1,428)
Percentage Rents 407,801 333,860 72,965 976
Lease Termination and Other Income 345,048 3,798 341,250 -
Exp. Recoveries and Other Income 6,328,771 4,875,368 1,102,437 350,966
-------------- ----------------- ------------------ ----------------
TOTAL REVENUES 25,449,255 15,676,694 62% 8,048,410 32% 1,724,151 7%
-------------- ----------------- ------------------ ----------------
R.E. OPERATING EXPENSES
Operating and Maintenance 5,324,904 4,364,057 680,696 280,151
Real Estate Taxes 1,877,789 1,037,655 663,660 176,474
----------------- ------------------ ----------------
Minority Interest in Properties - - - -
-------------- ----------------- ------------------ ----------------
Total Operating Expenses 7,202,693 5,401,712 75% 1,344,356 19% 456,625 6%
============== ================= ================== ================
NET OPERATING INCOME 18,246,562 10,274,982 56% 6,704,054 37% 1,267,526 7%
============== ================= ================== ================
OTHER INCOME (EXP.)
Interest Expense (7,075,154) (3,888,544) (3,067,916) (118,694)
Depreciation & Amortization (5,021,188) (2,796,167) (1,851,684) (373,337)
-------------- ----------------- ------------------ ----------------
TOTAL OTHER INCOME (EXP.) (12,096,342) (6,684,711) (4,919,600) (492,031)
-------------- ----------------- ------------------ ----------------
Gains(losses) on sales of int. in R.E. 4,085,164 - - 4,085,164
-------------- ----------------- ------------------ ----------------
Income before Minority Int. 10,235,384 3,590,271 1,784,454 4,860,659
-------------- ----------------- ------------------ ----------------
Discontinued Operations:
-------------- ----------------- ------------------ ----------------
Income from Disposed Real Estate 71,772 - - 71,772
-------------- ----------------- ------------------ ----------------
Gain (losses) on Disposition of
Discontinued Operations
-------------- ----------------- ------------------ ----------------
TOTAL DISCONTINUED OPERATIONS 71,772 - - 71,772
-------------- ----------------- ------------------ ----------------
Extraordinary item (Loss on
early extinguishment of debt) - - - -
-------------- ----------------- ------------------ ----------------
NET INCOME $ 10,307,156 $ 3,590,271 35% $ 1,784,454 17% $ 4,932,431 48%
============== ================= ================== ================
SAME STORE COMPARISON
Q3 03
(3 months ended 9/30/03)
-----------------------------------------------------------------------
Combined
Total Enclosed Mail Power Center Strip Center
------------ ----------------- ----------------- ----------------
R.E. OPERATING REVENUES
Base Rents $ 13,889,446 $ 5,984,561 $ 6,579,724 $ 1,325,161
Straight-Lining of Base Rents 279,677 94,129 162,538 23,010
Percentage Rents 230,443 169,735 60,708 -
Lease Termination 15,000 15,000 - -
Exp. Recoveries and Other Income 4,063,238 2,495,984 1,184,031 383,223
------------ ----------------- ----------------- ----------------
TOTAL REVENUES 18,477,804 8,759,409 47% 7,987,001 43% 1,731,394 9%
------------ ----------------- ----------------- ----------------
R.E. OPERATING EXPENSES
Operating and Maintenance 3,405,972 2,365,650 758,724 281,598
Real Estate Taxes 1,529,005 664,112 719,987 144,906
Minority Interest in Properties - - - -
------------ ----------------- ----------------- ----------------
Total Operating Expenses 4,934,977 3,029,762 61% 1,478,711 30% 426,504 9%
============ ================= ================= ================
NET OPERATING INCOME 13,542,827 5,729,647 42% 6,508,290 48% 1,304,890 10%
============ ================= ================= ================
OTHER INCOME (EXP.)
Interest Expense (5,210,423) (2,598,204) (2,574,908) (37,311)
Depreciation & Amortization (3,578,472) (1,282,122) (1,919,598) (376,752)
------------ ----------------- ----------------- ----------------
TOTAL OTHER INCOME (EXP.) (8,788,895) (3,880,326) (4,494,506) (414,063)
============ ================= ================= ================
Gain (losses) on sales of int. in R.E - - - -
------------ ----------------- ----------------- ----------------
Income before Minority Int. 4,753,932 1,849,321 2,013,784 890,827
------------ ----------------- ----------------- ----------------
Extraordinary item (Loss on
early extinguishment of debt) - - - -
------------ ----------------- ----------------- ----------------
NET INCOME $ 4,753,932 $ 1,849,321 39% $ 2,013,784 42% $ 890,827 19%
============ ================= ================= ================
% Change % Change % Change % Change
TOTAL(1) Enclosed Mall Power Center Strip Center
----------- ------------- ------------ ------------
R.E. OPERATING REVENUES
Base Rents 1.3% -1.0% 2.3% 8.3%
Straight-Lining of Base Rents 23.7% -23.5% 67.1% 294.8%
Percentage Rents -5.4% 0.0% -16.8% N/A
Lease Termination N/A N/A N/A N/A
Exp. Recoveries and Other Income 5.0% 2.4% 7.4% 15.5%
----------- ------------- ------------ ------------
TOTAL REVENUES 0.5% -0.2% -0.8% 10.8%
----------- ------------- ------------ ------------
R.E. OPERATING EXPENSES
Operating and Maintenance 8.4% 6.0% 11.5% 23.2%
Real Estate Taxes 9.9% 13.2% 8.5% 2.4%
Minority Interest in Properties N/A N/A N/A N/A
----------- ------------- ------------ ------------
Total Operating Expenses 8.9% 7.5% 10.0% 15.2%
=========== ============= ============ ============
NET OPERATING INCOME -2.2% -3.8% -2.9% 9.5%
=========== ============= ============ ============
OTHER INCOME (EXP.)
Interest Expense 1.6% 33.6% -16.1% -68.6%
Depreciation & Amortization 0.3% -7.3% 3.7% 13.5%
----------- ------------- ------------ ------------
TOTAL OTHER INCOME (EXP.) 1.0% 16.6% -8.6% -8.1%
=========== ============= ============ ============
Gain (losses) on sales of int. in R.E N/A N/A N/A N/A
----------- ------------- ------------ ------------
Income before Minority Int. -7.8% -29.7% 12.9% 20.1%
----------- ------------- ------------ ------------
Extraordinary item (Loss on
early extinguishment of debt)
----------- ------------- ------------ ------------
NET INCOME -7.8% -29.7% 12.9% 20.1%
=========== ============= ============ ============
Q3 02
(3 months ended 9/30/02)
-------------------------------------------------------------------------
Combined
TOTAL Enclosed Mall Power Center Strip Center
------------ ----------------- ------------------ ----------------
R.E. OPERATING REVENUES
Base Rents $ 13,704,730 $ 6,046,657 $ 6,434,487 $ 1,223,586
Straight-Lining of Base Rents 226,156 123,057 97,271 5,828
Percentage Rents 243,592 169,651 72,965 976
Lease Termination 341,250 - 341,250 -
Exp. Recoveries and Other Income 3,871,082 2,436,740 1,102,437 331,905
------------ ------------------ ------------------ ----------------
TOTAL REVENUES 18,386,810 8,776,105 48% 8,048,410 44% 1,562,295 8%
------------ ------------------ ------------------ ----------------
R.E. OPERATING EXPENSES
Operating and Maintenance 3,140,663 2,231,399 680,696 228,568
Real Estate Taxes 1,391,637 586,450 663,660 141,527
Minority Interest in Properties - - - -
------------ ------------------ ------------------ ----------------
Total Operating Expenses 4,532,300 2,817,849 62% 1,344,356 30% 370,095 8%
============ ================== ================== ================
NET OPERATING INCOME 13,854,510 5,958,256 43% 6,704,054 48% 1,192,200 9%
============ ================== ================== ================
OTHER INCOME (EXP.)
Interest Expense (5,130,767) (1,944,157) (3,067,916) (118,694)
Depreciation & Amortization (3,566,870) (1,383,380) (1,851,684) (331,806)
------------ ------------------ ------------------ ----------------
TOTAL OTHER INCOME (EXP.) (8,697,637) (3,327,537) (4,919,600) (450,500)
============ ================== ================== ================
Gain (losses) on sales of int. in R.E - - - -
------------ ------------------ ------------------ ----------------
Income before Minority Int. 5,156,873 2,630,719 1,784,454 741,700
------------ ------------------ ------------------ ----------------
Extraordinary item (Loss on
early extinguishment of debt) - - -
------------ ------------------ ------------------ ----------------
NET INCOME $ 5,156,873 $ 2,630,719 51% $ 1,784,454 35% $ 741,700 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.
10
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
MULTIFAMILY INCOME STATEMENT
QUARTERLY COMPARISON
(Property Status)
Q3 02
(3 months ended 9/30/03)
-----------------------------------------------------------
% Change % Change % Change
Combined TOTAL Wholly Owned JVs TOTAL WO JVs
-------------- -------------------- ------------------- -------- -------- --------
REAL ESTATE REVENUES
Rents $ 1,336,316 $ 989,836 $ 346,480 N/A N/A N/A
Less Vacancies & Concessions (76,347) (60,737) (15,610) N/A N/A N/A
Lease Termination 2,264 2,264 - N/A N/A N/A
Other Revenues 69,343 61,527 7,816 N/A N/A N/A
-------------- -------------------- ------------------- -------- -------- --------
TOTAL REVENUES 1,331,576 992,890 75% 338,686 25% N/A N/A N/A
-------------- -------------------- ------------------- -------- -------- --------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 636,314 449,158 187,156 N/A N/A N/A
Real Estate Taxes 76,172 42,536 33,636 N/A N/A N/A
Minority Interest in Properties - - - N/A N/A N/A
-------------- -------------------- ------------------- -------- -------- --------
TOTAL OPERATING EXPENSES 712,486 491,694 69% 220,792 31% N/A N/A N/A
-------------- -------------------- ------------------- -------- -------- --------
NET OPERATING INCOME 619,090 501,196 81% 117,894 19% N/A N/A N/A
-------------- -------------------- ------------------- -------- -------- --------
OTHER INCOME (EXPENSE)
Interest Expense (222,542) (169,696) (52,846) N/A N/A N/A
Depreciation & Amortization - - - N/A N/A N/A
-------------- -------------------- ------------------- -------- -------- --------
TOTAL OTHER INCOME (EXPENSE) (222,542) (169,696) (52,846) N/A N/A N/A
-------------- -------------------- ------------------- -------- -------- --------
Gains(losses) on sales of Real Estate 6,228,839 6,228,839 N/A N/A N/A
-------------- -------------------- ------------------- -------- -------- --------
Gain (losses) on Disposition of
Discontinued Operations 27,725,759 27,725,759 - N/A N/A N/A
-------------- -------------------- ------------------- -------- -------- --------
Extraordinary item (Loss on early ext.
of debt) - - -
-------------- -------------------- ------------------- -------- -------- --------
NET INCOME $ 34,351,146 $ 28,057,259 82% $ 6,293,887 18% N/A N/A N/A
============== ==================== =================== ======== ======== ========
Q3 02
(3 months ended 9/30/02)
-----------------------------------------------------------
Combined TOTAL Wholly Owned JVs
-------------- -------------------- -------------------
REAL ESTATE REVENUES
Rents $ 14,888,499 $ 13,142,616 $ 1,745,883
Less Vacancies & Concessions (1,288,892) (1,140,728) (148,164)
Lease Termination 81,186 81,186 -
Other Revenues 737,415 674,512 62,903
-------------- -------------------- -------------------
TOTAL REVENUES 14,418,208 12,757,586 88% 1,660,622 12%
-------------- -------------------- -------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 4,890,938 4,238,321 652,617
Real Estate Taxes 1,368,066 1,217,816 150,250
Minority Interest in Properties - - -
-------------- -------------------- -------------------
TOTAL OPERATING EXPENSES 6,259,004 5,456,137 87% 802,867 13%
-------------- -------------------- -------------------
NET OPERATING INCOME 8,159,204 7,301,449 89% 857,755 11%
-------------- -------------------- -------------------
OTHER INCOME (EXPENSE)
Interest Expense (3,525,258) (3,095,320) (429,938)
Depreciation & Amortization (2,312,496) (2,077,467) (235,029)
-------------- -------------------- -------------------
TOTAL OTHER INCOME (EXPENSE) (5,837,754) (5,172,787) (664,967)
-------------- -------------------- -------------------
Gains(losses) on sales of Real Estate - - -
-------------- -------------------- -------------------
Gain (losses) on Disposition of
Discontinued Operations - - -
-------------- -------------------- -------------------
Extraordinary item (Loss on early ext.
of debt) - -
-------------- -------------------- -------------------
NET INCOME $ 2,321,450 $ 2,128,662 92% $ 192,788 8%
============== ==================== ===================
NOTE: Reconciliation to GAAP is on pages 33 to 36.
11
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
FUNDS FROM OPERATIONS (1) Q3:9/30/03 % Change Q3:9/30/02
------------ -------- -------------
Net Income $ 34,923,502 327.1% $ 8,177,840
Minority Interest in operating partnership-operations 989,253 297.4% 248,916
Minority Interest in operating partnership-discontinued
operations 2,382,461 N/A 637,292
(Gain) loss on sales of interests in real estate (6,228,839) N/A (4,085,164)
Gain (losses) on disposition of discontinued operations (27,725,759) N/A -
Depreciation & amortization: (2)
Wholly owned and consolidated partnerships 9,126,800 182.3% 3,233,045
Unconsolidated partnerships and joint ventures 1,034,646 -47.5% 1,971,087
Discontinued operations - N/A 2,113,951
------------ -------- -------------
FFO $ 14,502,064 17.9% $ 12,296,967
------------ -------- -------------
Weighted Average Shares and O.P. Units Outstanding 21,537,479 17.7% 18,305,378
------------ -------- -------------
Net Income per Share $ 1.79 263.0% $ 0.49
------------ -------- -------------
FFO per Share $ 0.67 0.2% $ 0.67
------------ -------- -------------
FUNDS AVAILABLE FOR DISTRIBUTION
FFO $ 14,502,064 17.9% $ 12,296,967
Adjustments:
Straight-lining of base rents (765,238) 189.6% (264,272)
Recurring capital expenditures (231,073) -68.3% (729,390)
Amortization of debt premium (1,742,283) N/A -
------------ -------- -------------
FAD $ 11,763,470 4.1% $ 11,303,305
------------ -------- -------------
Weighted Average Shares and O.P. Units Outstanding 21,537,479 17.7% 18,305,378
------------ -------- -------------
FAD per Share $ 0.55 -11.5% $ 0.62
------------ -------- -------------
PAYOUT RATIOS
------------ -------- -------------
Dividend per Share $ 0.51 0.0% $ 0.51
------------ -------- -------------
Payout Ratio of Net Income 28.46% -74.9% 103.31%
============ ======== =============
Payout Ratio of FFO 75.74% -0.2% 75.92%
============ ======== =============
Payout Ratio of FAD 93.37% 10.8% 82.59%
------------ -------- -------------
(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.
12
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
KEY RATIOS
Q3: 9/30/2003 Q3: 9/30/2002
------------- -------------
Coverage Ratio
Interest Coverage Ratio (EBITDA/Interest
Expense) 2.27 2.16
------------- -------------
Leverage Ratios(1)
Debt / Total Market Capitalization 46.4% 56.1%
------------- -------------
Operating Ratios
NOI/Real Estate Revenues 59.7% 66.3%
------------- -------------
Return on Investment Ratios(1)
FFO/Equity Market Capitalization 1.7% 2.6%
FFO multiple (Closing share price /
Annualized FFO per share for quarter) 12.42 10.09
NOI/Total Market Capitalization 2.0% 2.5%
NOI/Investment in Real Estate 2.5% 2.9%
------------- -------------
Payout Ratios
FFO Payout Ratio (Dividend/FFO) per Share 75.7% 75.9%
FAD Payout Ratio (Dividend/FAD) per Share 93.4% 82.6%
============= =============
(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.
13
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
DEBT SCHEDULE of WHOLLY OWNED PROPERTIES
PREIT's
Ownership Total Investment to PREIT's Investment to PREIT's Accumulated
Property Name Interest Date Date (1) Depreciation
- ----------------------------------------- --------- ------------------- --------------------- -------------------
Retail Properties
Beaver Valley Mall 100% $ 57,403,180 $ 57,403,180 $ 2,350,987
Cherry Hill Mall (2)(3)(4) 73% 203,720,555 189,642,373 2,270,535
Christiana Power I 100% 35,077,062 35,077,062 4,226,982
Creekview 100% 18,919,399 18,919,399 1,693,605
Crest Plaza Shopping Center 100% 14,525,541 14,525,541 931,986
Dartmouth Mall 100% 50,172,329 50,172,329 8,619,727
Echelon Mall 100% 14,246,770 14,246,770 119,220
Exton Square Mall (4) 100% 145,114,369 145,114,369 1,579,990
Festival at Exton 100% 18,983,896 18,983,896 2,035,558
Gallery at Market East 100% 48,003,235 48,003,235 505,573
Magnolia Mall 100% 56,605,551 56,605,551 7,103,271
Moorestown Mall 100% 70,400,800 70,400,800 599,947
Northeast Tower Center 100% 29,218,446 29,218,446 2,494,854
Northeast Tower Center-Home Depot 100% 13,578,891 13,578,891 1,222,100
Paxton Towne Centre 100% 53,316,125 53,316,125 3,933,128
Plymouth Meeting Mall 100% 74,490,580 74,490,580 387,868
Prince Georges Plaza (4) 100% 80,104,192 80,104,192 9,977,071
South Blanding Village 100% 9,497,650 9,497,650 3,138,658
The Commons at Magnolia 100% 9,875,212 9,875,212 818,803
Willow Grove Park (4) 100% 170,037,901 170,037,901 4,848,160
--------- ------------------- --------------------- -------------------
Sub-Total Retail Properties $ 1,173,291,684 $ 1,159,213,502 $ 58,858,023
--------- ------------------- --------------------- -------------------
Industrial and Land Properties
ARA Services, Allentown, PA 100% $ 84,610 $ 84,610 $ 81,610
ARA Services, Pennsauken, NJ 100% 210,473 210,473 167,876
Interstate Container Corporation 100% 1,802,271 1,802,271 1,468,679
Sears Roebuck & Co. 100% 406,857 406,857 346,066
--------- ------------------- --------------------- -------------------
Sub-Total Industrial and Land Properties $ 2,504,211 $ 2,504,211 $ 2,064,231
--------- ------------------- --------------------- -------------------
Properties Under Construction/Development
Other Development (5) 100%
--------- ------------------- --------------------- -------------------
Sub-Total Properties Under Development $ - $ - $ -
--------- ------------------- --------------------- -------------------
TOTAL for WHOLLY OWNED PROPERTIES $ 1,175,795,895 $ 1,161,717,713 $ 60,922,254
========= =================== ===================== ===================
TOTAL for PARTNERSHIPS and JOINT VENTURES $ 298,320,987 $ 148,350,893 $ 36,454,134
========= =================== ===================== ===================
CORPORATE
========= =================== ===================== ===================
TOTAL for WHOLLY OWNED and JV PROPERTIES $ 1,474,116,882 $ 1,310,068,606 $ 97,376,388
========= =================== ===================== ===================
PREIT's Share of O/S PREIT's Share of Current
PREIT's Depreciated Mortgage Debt and Bank Loan Debt Mortgages
Property Name Costs Construction Loans Outstanding Interest Rate
- ----------------------------------------- ------------------- -------------------- ---------------- -------------
Retail Properties
Beaver Valley Mall $ 55,052,193 $ 47,427,606 $ - 7.36%
Cherry Hill Mall (2)(3)(4) 187,371,838 81,432,170 - 10.60%
58,562,054 - 5.00%
Christiana Power I 30,850,080 - - 0.00%
Creekview 17,225,794 - - 0.00%
Crest Plaza Shopping Center 13,593,555 - - 0.00%
Dartmouth Mall 41,552,602 69,763,537 - 4.95%
Echelon Mall 14,127,550 - - 0.00%
Exton Square Mall (4) 143,534,379 107,255,131 - 6.95%
Festival at Exton 16,948,338 - - 0.00%
Gallery at Market East 47,497,662 - - 0.00%
Magnolia Mall 49,502,280 21,024,277 - 8.20%
Moorestown Mall 69,800,853 63,954,149 - 4.95%
Northeast Tower Center 26,723,592 - - 0.00%
Northeast Tower Center-Home Depot 12,356,791 12,500,000 - 7.40%
Paxton Towne Centre 49,382,997 - - 0.00%
Plymouth Meeting Mall 74,102,712 - - 0.00%
Prince Georges Plaza (4) 70,127,121 44,123,962 - 8.70%
South Blanding Village 6,358,992 - - 0.00%
The Commons at Magnolia 9,056,409 - - 0.00%
Willow Grove Park (4) 165,189,741 114,492,612 - 8.39%
------------------- -------------------- ---------------- -------------
Sub-Total Retail Properties $ 1,100,355,479 $ 620,535,498 $ - 7.29%
------------------- -------------------- ---------------- -------------
Industrial and Land Properties
ARA Services, Allentown, PA $ 3,000 $ - $ - 0.00%
ARA Services, Pennsauken, NJ 42,597 - - 0.00%
Interstate Container Corporation 333,592 - - 0.00%
Sears Roebuck & Co. 60,791 - - 0.00%
------------------- -------------------- ---------------- -------------
Sub-Total Industrial and Land Properties $ 439,980 $ - $ - 0.00%
------------------- -------------------- ---------------- -------------
Properties Under Construction/Development
Other Development (5) - - 0.00%
------------------- -------------------- ---------------- -------------
Sub-Total Properties Under Development $ - $ - $ - 0.00%
------------------- -------------------- ---------------- -------------
TOTAL for WHOLLY OWNED PROPERTIES $ 1,100,795,459 $ 620,535,498 $ - 7.29%
=================== ==================== ================ =============
TOTAL for PARTNERSHIPS and JOINT VENTURES $ 111,896,759 $ 118,525,862 $ - 7.54%
=================== ==================== ================ =============
CORPORATE $ -
=================== ==================== ================ =============
TOTAL for WHOLLY OWNED and JV PROPERTIES $ 1,212,692,218 $ 739,061,360 $ - 7.33%
=================== ==================== ================ =============
Annual Mortgage Mortgage Balance at Date of
Property Name Debt Service Maturity Maturity Notes
- ----------------------------------------- --------------- ------------------- -------- -----------
Retail Properties
Beaver Valley Mall $ 3,972,402 $ 42,265,601 2012
Cherry Hill Mall (2)(3)(4) 9,132,792 70,237,549 2005
3,889,582 58,148,407 2005
Christiana Power I - -
Creekview - -
Crest Plaza Shopping Center - -
Dartmouth Mall 4,483,668 57,594,279 2013
Echelon Mall
Exton Square Mall (4) 8,102,242 93,034,212 2008
Festival at Exton - -
Gallery at Market East
Magnolia Mall 2,597,726 17,782,882 2007
Moorestown Mall 4,115,367 52,863,321 2013
Northeast Tower Center - -
Northeast Tower Center-Home Depot 925,000 12,500,000 2005
Paxton Towne Centre - -
Plymouth Meeting Mall
Prince Georges Plaza (4) 4,134,937 39,986,536 2007
South Blanding Village - -
The Commons at Magnolia - -
Willow Grove Park (4) 10,046,933 107,307,726 2006
--------------- ------------------- -------- -----------
Sub-Total Retail Properties $ 51,400,649 $ 551,720,513
--------------- ------------------- -------- -----------
Industrial and Land Properties
ARA Services, Allentown, PA $ - $ -
ARA Services, Pennsauken, NJ - -
Interstate Container Corporation - -
Sears Roebuck & Co. - -
--------------- ------------------- -------- -----------
Sub-Total Industrial and Land Properties $ - $ -
--------------- ------------------- -------- -----------
Properties Under Construction/Development
Other Development (5) - - Development
--------------- ------------------- -------- -----------
Sub-Total Properties Under Development $ - $ -
--------------- ------------------- -------- -----------
TOTAL for WHOLLY OWNED PROPERTIES $ 51,400,649 $ 551,720,513
=============== =================== ======== ===========
TOTAL for PARTNERSHIPS and JOINT VENTURES $ 11,455,075 $ 102,602,765
=============== =================== ======== ===========
CORPORATE
=============== =================== ======== ===========
TOTAL for WHOLLY OWNED and JV PROPERTIES $ 62,855,724 $ 654,323,278
=============== =================== ======== ===========
(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.
(5) Includes mark to market of debt.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
14
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
DEBT SCHEDULE of PARTNERSHIPS AND JOINT VENTURES
PREIT's Share of
O/S Mortgage
PREIT's PREIT's PREIT's PREIT's Debt and
Ownership Total Investment Investment to Accumulated Depreciated Construction
Property Name Interest to Date Date (1) Depreciation Costs Loans
- ------------------------------- --------- ----------------- --------------- -------------- ----------------- -----------------
Retail Properties
Court at Oxford Valley 50% $ 55,616,100 $ 27,808,050 $ 4,097,286 $ 23,710,764 $ 21,968,175
Metroplex Shopping Center (Blue
Route) 50% 82,091,872 41,045,936 3,325,491 37,720,445 32,214,382
Laurel Mall 40% 31,377,328 12,550,931 4,551,149 7,999,782 8,519,539
Lehigh Valley Mall 50% 29,320,828 14,660,414 9,401,318 5,259,096 23,828,582
Palmer Park Mall 50% 28,445,030 14,222,515 5,548,410 8,674,105 9,159,748
Red Rose Commons 50% 20,395,274 10,197,637 1,300,094 8,897,543 13,857,731
Rio Mall 60% 8,219,542 4,931,725 2,317,300 2,614,425 -
Springfield Park I&II 50% 13,270,686 6,635,343 552,696 6,082,647 1,864,006
Whitehall Mall 50% 29,584,328 14,792,164 5,360,390 9,431,774 7,113,699
----------------- --------------- -------------- ----------------- -----------------
Sub-Total Retail Properties $ 298,320,987 $ 146,844,715 $ 36,454,134 $ 110,390,581 $ 118,525,862
----------------- --------------- -------------- ----------------- -----------------
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 $ 298,320,987 $ 148,350,893 $ 36,454,134 $ 111,896,759 $ 118,525,862
================= =============== ============== ================= =================
PREIT's
Share of Current
Bank Loan Mortgages Annual Mortgage
Debt Interest Mortgage Debt Balance at Date of
Property Name Outstanding Rate Service Maturity Maturity Notes
- ------------------------------- ----------- --------- ------------- ------------- ---------- -----
Retail Properties
Court at Oxford Valley $ - 8.02% $ 2,319,426 $ 15,966,965 2011
Metroplex Shopping Center (Blue
Route) - 7.25% 2,680,953 28,250,000 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
----------- --------- ------------- -------------
Sub-Total Retail Properties $ - 7.54% $ 11,455,075 $ 102,602,765
----------- --------- ------------- -------------
Construction in
Progress/Development
Construction in
Pavilion at Market East $ - 0.00% - - Progress
----------- --------- ------------- -------------
Sub-Total Properties Under
Development $ - $ - $ - $ -
----------- --------- ------------- -------------
TOTAL for PARTNERSHIPS and
JOINT VENTURES $ - 7.54% $ 11,455,075 $ 102,602,765
=========== ========= ============= =============
(1) Includes development and CIP costs.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
15
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
DEBT ANALYSIS
Outstanding Debt
% of Total % of Total % of Total
Fixed Rate Indebtedness Floating Rate Indebtedness Total Indebtedness
--------------- ------------ ------------- ------------ -------------- ------------
Wholly Owned
Mortgage Notes Payable $ 620,535,498 84.0% $ - 0.0% $ 620,535,498 84.0%
Revolving Line of Credit - 0.0% - 0.0% - 0.0%
Acquisition Term Loan &
Unsecured Line of Credit 0.0% - 0.0% - 0.0%
--------------- ------------ --------------
SUB-TOTAL 620,535,498 84.0% - 0.0% 620,535,498 84.0%
Partnerships and Joint Ventures
(at PREIT's share)
Mortgage Notes Payable 118,525,862 16.0% - 0.0% 118,525,862 16.0%
Revolving Line of Credit - 0.0% - 0.0% - 0.0%
Construction loans payable - 0.0% - 0.0% - 0.0%
--------------- ------------ --------------
SUB-TOTAL 118,525,862 16.0% - 0.0% 118,525,862 16.0%
Corporate
Revolving Line of Credit - 0.0% - 0.0% - 0.0%
--------------- ------------ --------------
SUB-TOTAL - 0.0% - 0.0% - 0.0%
TOTAL OUTSTANDING DEBT 739,061,360 - 739,061,360
SWAP - - -
--------------- ------------ --------------
TOTAL DEBT AFTER HEDGE $ 739,061,360 100.0% $ - 0.0% $ 739,061,360 100.0%
=============== ============ ==============
OUTSTANDING PRINCIPAL BALANCE
[CHART APPEARS HERE]
Weighted Average Interest Rates
Weighted
Average
Principal Balance Interest Rate
------------------- -------------
Fixed Rate Debt $ 739,061,360 7.33%
Floating Rate Debt - 0.00%
------------------- -------------
TOTAL $ 739,061,360 7.33%
=================== =============
Interest Rate Hedging Instruments
Interest Rate Expiration Fixed Rate in Floating Rate
Nominal Amount Limit Date Nominal Amount Agreement in Agreement Expiration Date
---------------------------------------------- ----------------------------------------------------------------
CAP None SWAP None
MORTGAGE/CONSTRUCTION MATURITY SCHEDULE (1)
Cumulative %
Mortgage Balance at of Debt
Year Maturity % of Debt Expiring Expiring
- --------------------------------------------------------------------
2003 8,832,000 1.3% 1.3%
2004 - 0.0% 1.3%
2005 70,648,407 10.8% 12.1%
2006 129,058,166 19.7% 31.9%
2007 57,769,418 8.8% 40.7%
2008 99,163,149 15.2% 55.9%
2009 20,262,619 3.1% 59.0%
2010 1,411,804 0.2% 59.2%
2011 44,216,965 6.8% 65.9%
2012 - 0.0% 65.9%
Thereafter 222,960,750 34.1% 100.0%
----------------------------------------
$ 654,323,278 100.0%
========================================
(1) The weighted average period to mortgage maturity is 5.0 years.
Average Debt Balance
Mortgage Debt Acquisition Term
& Loan &
Construction Line of Credit & Unsecured Line of
Loans Bank Loans Credit TOTAL
----------------------------------------------------------------------
Beginning Balance 6/30/2003 $ 698,964,718 $ 117,900,000 $ 20,249,935 $ 837,114,745
Payoff acquisition term loan 7/21/2003 (10,249,935) (10,249,935)
Paydown of unsecured line of credit
(proceeds from multifamily sale) 7/30/2003 (3,427,747) (10,000,000) (13,427,747)
Paydown (proceeds from multifamily sale) 7/30/2003 (33,831,176) (23,000,000) (56,831,176)
Paydown (proceeds from equity offering) 8/21/2003 (94,900,000) (94,900,000)
Willow Grove 70% partner's interest
acquisition (1) 9/4/2003 82,276,438 82,276,438
Debt Amortization (2) 9/30/2003 (4,920,873) (4,920,873)
----------------------------------------------------------------------
Ending Balance 9/30/2003 $ 739,061,360 $ - $ - $ 739,061,360
Weighted Average Balance $ 697,107,481 $ 61,139,130 $ 5,600,529 $ 763,847,140
(1) Includes mark to market of debt.
(2) Includes the amortization of debt premium.
NOTE: Reconciliation to GAAP is on pages 33 to 36.
16
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
DEBT RATIOS(1)
9/30/2003 9/30/2002
---------------- ----------------
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 $ 761,163,122 $ 632,342,962
Gross Asset Value $ 1,523,628,448 $ 1,147,160,068
Ratio 49.96% 55.12%
---------------- ----------------
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) $ 673,671 $ 121,673,671
Borrowing Base Value $ 171,710,000 $ 220,160,000
Ratio 0.39% 55.27%
---------------- ----------------
EBITDA to Interest Expense
Ratio of EBITDA(6) to Interest Expense(7) greater than or equal to 1.75 to 1.00.
EBITDA $ 104,337,345 $ 86,675,684
Interest Expense $ 49,889,409 $ 41,538,494
Ratio 2.09 2.09
---------------- ----------------
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 $ 102,768,757 $ 84,272,963
Debt Service $ 56,925,508 $ 48,814,750
Ratio 1.81 1.73
---------------- ----------------
(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.
17
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED 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 (1) 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) 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 Existing 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%
Willow Grove Park Willow Grove PA Enclosed Mall PREIT New 100%
Magnolia Mall (1) Florence SC Enclosed Mall PREIT Redevelopment 100%
The Commons at Magnolia Florence SC Strip Center PREIT Existing 100%
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL WHOLLY OWNED
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL JOINT VENTURE
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR Wholly Owned and Joint
Venture
- ---------------------------------------------------------------------------------------------------------------------------------
AVERAGE FOR Wholly Owned and Joint
Venture
- ---------------------------------------------------------------------------------------------------------------------------------
Year Built/
Last Years Since Owned GLA Owned GLA TOTAL
Retail Properties-Wholly Owned Date 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 3 301,583 315,109 616,692
Prince Georges Plaza (1) 1998 1959/1990 13 404,462 346,968 751,430
Cherry Hill Mall 2003 1961/1990 13 - 534,367 534,367
Moorestown Mall 2003 1963/2000 3 408,356 326,190 734,546
Echelon Mall 2003 1970/1998 5 310,840 434,844 745,684
Crest Plaza Shopping Center (1) 1964 1959/1991 12 45,000 60,992 105,992
Exton Square Mall 2003 1973/2000 3 440,301 369,303 809,604
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 12 511,267 447,952 959,219
Northeast Tower Center 1998/1999 1997/1998 5 250,903 182,521 433,424
The Gallery at Market East 2003 1977/1983 20 - 192,440 192,440
Plymouth Meeting Mall 2003 1966/1999 4 345,000 405,911 750,911
Creekview Shopping Center 1999 2001 2 - 136,086 136,086
Willow Grove Park 2000/2003 1982/2001 2 225,000 339,781 564,781
Magnolia Mall (1) 1997 1979/1992 11 343,118 223,193 566,311
The Commons at Magnolia 1999 1991/2002 1 51,574 52,870 104,444
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL WHOLLY OWNED 4,114,191 4,890,299 9,004,490
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL JOINT VENTURE 1,635,244 2,072,799 3,708,043
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL FOR Wholly Owned and Joint
Venture 5,749,435 6,963,098 12,712,533
- ----------------------------------------------------------------------------------------------------------------------------
AVERAGE FOR Wholly Owned and Joint
Venture 6.66
- ----------------------------------------------------------------------------------------------------------------------------
Space Not
Owned TOTAL Property
Retail Properties-Wholly Owned (Name/GLA) GLA Majors / Anchors Lease Expiration
- ------------------------------ -------------- -------------- ------------------- ----------------
Christiana Power Center I - 302,409 Costco 1/31/19
Dick's Sporting Gds 11/30/13
South Blanding Village - 106,657 Staples 9/30/08
Food Lion 7/31/08
Dartmouth Mall - 616,692 JC Penney 7/31/09
Sears 4/12/06
Prince Georges Plaza (1) - 751,430 JC Penney 7/31/04
Hecht 10/31/08
Cherry Hill Mall JC Penney 740,770 1,275,137 JC Penney N/A
Macy's Macy's N/A
Strawbridge's Strawbridge's N/A
Moorestown Mall Lord & Taylor 321,200 1,055,746 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) Target 143,130 249,122 Weis Market 1/31/07
Target N/A
Exton Square Mall Strawbridge's 277,468 1,087,072 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 8/18/04
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 1,163,989 Boscov's 9/30/18
JC Penney 9/30/17
Sears 8/15/06
Kaufmann's N/A
Northeast Tower Center Raymour & 38,678 472,102 Home Depot 9/30/05
Flanigan Dick's Sporting Gds 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 214,635 965,546 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
Willow Grove Park Sears 641,861 1,206,642 Sears N/A
Bloomingdale's Bloomingdale's N/A
Strawbridge's Strawbridge's N/A
Macy's 1/31/22
Magnolia Mall (1) - 566,311 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 3,667,469 12,671,959
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL JOINT VENTURE - 1,265,598 4,973,641
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR Wholly Owned and
Joint Venture - 4,933,067 17,645,600
- ------------------------------------------------------------------------------------------------------------------------------
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 18 19
- ---------------------------------------------------------------
Power Center Third Party New Joint Venture
Managed
8 7 7 10
- ---------------------------------------------------------------
Strip Center Redevelopment
6 3
- ---------------------------------------------------------------
28 28 28 29
- ---------------------------------------------------------------
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:
8,910,118 9,577,493 6,956,467 9,004,490 31.6%
- -----------------------------------------------------------------------------------------------------------
Power Center Third Party Managed New Joint Venture Top asset as a percentage of Total
Owned GLA:
3,047,905 3,135,040 4,332,333 3,708,043 7.5%
- -----------------------------------------------------------------------------------------------------------
Strip Center Redevelopment
754,510 1,423,733
- -----------------------------------------------------------------------------------------------------------
12,712,533 12,712,533 12,712,533 12,712,533
- -----------------------------------------------------------------------------------------------------------
(1) Property is currently under development or redevelopment; however, certain
stores are open.
18
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
PORTFOLIO SUMMARY--RETAIL JOINT VENTURE
(Sorted by State)
Property Management Ownership
Retail Properties-Joint Venture City State Subtype Status Property Status Interest
- ------------------------------- ------------- ----- ------------ ----------- --------------- ---------
Rio Mall Rio Grande NJ Strip Center Third Party Existing 60%
Lehigh Valley Mall Allentown PA Enclosed Third Party Existing 50%
Mall
Whitehall Mall Allentown PA Power Third Party Existing 50%
Center
Palmer Park Mall Easton PA Enclosed PREIT Existing 50%
Mall
Laurel Mall Hazleton PA Enclosed Third Party Existing 40%
Mall
Red Rose Commons Lancaster PA Power Third Party Existing 50%
Center
The Court at Oxford Valley Langhorne PA Power Third Party Existing 50%
Center
Metroplex Shopping Center Plymouth Mtg. PA Power Third Party Existing 50%
Center
Springfield Park I & II Springfield PA Strip Center PREIT Existing 50%
- ------------------------------------------------------------------------------------------------------------------
TOTAL FOR JOINT VENTURE
- ------------------------------------------------------------------------------------------------------------------
Year Built/
Last Years Since Owned GLA Owned GLA TOTAL
Retail Properties-Wholly Owned Date Acquired Renovated Renovation (anchors) (non-anchors) Owned GLA
- ------------------------------ ------------- ----------- ----------- --------- ------------- ---------
Rio Mall 1973 1973/1999 4 136,066 29,517 165,583
Lehigh Valley Mall 1973 1977/1996 7 212,000 467,159 679,159
Whitehall Mall 1964 1964/1998 5 294,635 239,086 533,721
Palmer Park Mall 1972 1972/1998 5 314,235 131,937 446,172
Laurel Mall 1988 1973/1995 8 350,753 208,049 558,802
Red Rose Commons 1998 1998 5 - 263,452 263,452
The Court at Oxford Valley 1997 1996 7 176,831 280,031 456,862
Metroplex Shopping Center 1999 2001 2 67,185 410,276 477,461
Springfield Park I & II 1997/1998 1997/1998 5 83,539 43,292 126,831
- ------------------------------------------------------------------------------------------------------------------
TOTAL FOR JOINT VENTURE 1,635,244 2,072,799 3,708,043
- ------------------------------------------------------------------------------------------------------------------
TOTAL
Retail Properties-Wholly Owned Space Not Owned (Name/GLA) Property GLA Majors / Anchors Lease Expiration
- ------------------------------ -------------------------- ------------ ------------------- ----------------
Rio Mall - 165,583 K-Mart 7/31/18
Staples 10/31/04
Lehigh Valley Mall JC Penney 371,986 1,051,145 Macy's 7/31/12
Strawbridge's JC Penney N/A
Firestone Strawbridge's N/A
Whitehall Mall - 533,721 Kohl's 3/9/07
Sears 9/18/11
Bed, Bath & Beyond 1/31/10
Palmer Park Mall - 446,172 BonTon 7/25/14
Boscov's 10/31/18
Laurel Mall - 558,802 Boscov's 4/30/08
K-Mart 8/31/19
JC Penney 10/31/09
Red Rose Commons Weis Markets 199,590 463,042 Weis Markets N/A
Home Depot Home Depot N/A
The Court at Oxford Valley Home Depot 247,624 704,486 Best Buy 12/31/11
BJ's Dick's Sporting Gds 4/15/11
Linens N Things 2/14/17
Metroplex Shopping Center Target 300,729 778,190 Target N/A
Lowe's Lowe's N/A
Giant 2/28/21
Springfield Park I & II Target 145,669 272,500 Target N/A
Bed, Bath & Beyond 1/31/09
LA Fitness 3/31/17
- ------------------------------------------------------------------------------------------------------------------
TOTAL FOR JOINT VENTURE - 1,265,598 4,973,641
- ------------------------------------------------------------------------------------------------------------------
19
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
Property Acquisitions/Dispositions Summary
Date Acquired,
Square Feet/ Ownership Completed, or
Name of Project, Location Units/Acres Interest Sold
- ------------------------------------------------------------------------------- ------------ --------- --------------
Acquisitions:
- -------------
Partner's 70% interest in Willow Grove Park, Willow Grove, PA Square Feet 1,205,720 100% 3Q03
Parcel of Land at Plymouth Meeting, Plymouth Meeting, PA Acres 6.08 100% 3Q03
------------
TOTAL ACQUISITIONS Square Feet 1,205,720
Acres 6.08
Pending Acquisitions:
- ---------------------
New Garden, New Garden, PA Square Feet 394,355 100% 3Q04
------------
TOTAL PENDING ACQUISITIONS Square Feet 394,361
Divestitures
- ------------
Regency Lakeside Apartments, Omaha, NE Units 433 100% Jul-03
Emerald Point, Virginia Beach, VA Units 862 100% Jul-03
------------
SUBTOTAL Units 1,295
Fox Run Apartments, Warminster, PA Units 196 50% Sep-03
Will-O-Hill Apartments, Reading, PA Units 190 50% Sep-03
------------
SUBTOTAL Units 386
TOTAL DIVESTITURES Units 1,681
Pending Divestitures:
- ---------------------
None
Total PREIT's Expected NOI
Name of Project, Location Cost or Price Cost or Price Cap (1) Major Tenants
- ------------------------------------------------------------- -------------- --------------- ------------ ---------------
Acquisitions:
- -------------
Partner's 70% interest in Willow Grove Park, Willow Grove, PA $ 122,300,000 $ 122,300,000 9.00% Bloomingdale's,
Macy's, Sears,
Strawbridge's
Parcel of Land at Plymouth Meeting, Plymouth Meeting, PA 15,750,000 15,750,000 N/A
-------------- ---------------
TOTAL ACQUISITIONS $ 138,050,000 $ 138,050,000
Pending Acquisitions:
- ---------------------
New Garden, New Garden, PA $ 34,761,000 $ 18,821,000 10.6% Home Depot
-------------- ---------------
TOTAL PENDING ACQUISITIONS $ 34,761,000 $ 18,821,000
Divestitures
- ------------
Regency Lakeside Apartments, Omaha, NE
Emerald Point, Virginia Beach, VA
--------------
SUBTOTAL $ 81,400,000
Fox Run Apartments, Warminster, PA
Will-O-Hill Apartments, Reading, PA
--------------
SUBTOTAL $ 8,600,000
TOTAL DIVESTITURES $ 90,000,000
Pending Divestitures:
- ---------------------
None
(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.
20
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
Development Activity
TOTAL PREIT's
PROJECTED TOTAL PREIT's SHARE OF
PROPERTY PROPERTY PROJECTED SHARE OF INVESTMENT
NAME OF PROJECT LOCATION TYPE GLA (sq ft) (1) COST (1) COST TO DATE
- -------------------------------------- ------------- ------------ --------------- -------------- ------------ --------------
Christiana Power Center (Phase II) (2) Newark, DE Power Center 355,670 $ 35,542,768 $ 35,542,768 $ 4,360,596
New Garden New Garden Power Center 394,355 34,761,000 18,821,000 1,323,683
Twp, PA
Pavilion at Market East (3) Philadelphia, Land N/A N/A N/A 1,506,178
PA
- ----------------------------------------------------------------------------------------------------------------------------------
Total Development Activity 750,025 $ 70,303,768 $ 54,363,768 $ 7,190,457
==================================================================================================================================
EXPECTED CONST DATE OF EXPECTED STABILIZED
STABILIZED START INITIAL DATE OF OPERATIONS
NAME OF PROJECT NOI CAP DATE OCCUPANCY COMPLETION DATE STATUS
- -------------------------------------- ---------- ----- --------- ---------- ---------- ------------
Christiana Power Center (Phase II) (2) 9.8% 2Q04 2Q05 2Q05 2Q05 Development
New Garden 10.6% 3Q04 3Q05 1Q06 1Q06 Development
Pavilion at Market East (3) N/A N/A N/A N/A N/A Construction
- ----------------------------------------------------------------------------------------------------------------
Total Development Activity 10.1%
================================================================================================================
% % % PREIT's
NAME OF PROJECT COMP. LEASED OCCUPIED ANCHORS SHARE
- -------------------------------------- ----- ------ -------- ------------------------- -------
Christiana Power Center (Phase II) (2) 12% 79% 0% Target, Bed Bath & Beyond 100%
New Garden 5% 30% 0% Home Depot, Supermarket 100%
Pavilion at Market East (3) N/A N/A N/A TBD 50%
- ---------------------------------------------------------------------------------------------------------
Total Development Activity
=========================================================================================================
(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
PROJECTED TOTAL PREIT's PREIT's SHARE
PROPERTY PROPERTY PROJECTED SHARE OF OF INVESTMENT
NAME OF PROJECT LOCATION TYPE GLA (sq ft) (1) COST (1) COST TO DATE
- ---------------------------- --------------- ------------- --------------- -------------- -------------- -------------
Magnolia Mall (2) Florence, SC Enclosed Mall 579,244 $ 11,529,000 $ 10,873,575 $ 7,116,667
Prince Georges Plaza (2)(3) Hyattsville, MD Enclosed Mall 893,274 24,146,000 17,200,000 3,049,831
Crest Plaza (2)(4) Allentown, PA Strip Center 259,854 17,800,000 12,788,000 12,812,000
- ----------------------------------------------------------------------------------------------------------------------------------
Total Redevelopment Activity $ 1,732,372 $ 53,475,000 $ 40,861,575 $ 22,978,498
==================================================================================================================================
EXPECTED CONST DATE OF EXPECTED STABILIZED
STABILIZED START INITIAL DATE OF OPERATIONS
NAME OF PROJECT NOI CAP DATE OCCUPANCY COMPLETION DATE STATUS
- ---------------------------- ---------- ----- --------- ---------- ---------- -------------
Magnolia Mall (2) 11.1% 2Q02 4Q02 3Q04 3Q04 Construction
Prince Georges Plaza (2)(3) 12.0% 2Q03 4Q04 4Q04 4Q05 Construction
Crest Plaza (2)(4) 4.8% 3Q99 1Q03 2Q04 2Q04 Redevelopment
- -------------------------------------------------------------------------------------------------------
Total Redevelopment Activity 9.5%
=======================================================================================================
% % PREIT's
NAME OF PROJECT COMP. % LEASED OCCUPIED ANCHORS SHARE
- ---------------------------- ----- -------- -------- --------------------------- -------
Magnolia Mall (2) 74% 88% 74% Best Buy, Foodcourt 100%
Prince Georges Plaza (2)(3) 18% 65% 0% Target 100%
Crest Plaza (2)(4) 85% 92% 73% Eckerds, Applebee's, Target 100%
- --------------------------------------------------------------------------------------------------
Total Redevelopment Activity
==================================================================================================
(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 9/30/03.
(4) PREIT's share of investment to date includes certain costs that are
reimbursable by the tenant. Both "PREIT's Share of Costs" and "PREIT
Investment to Date" are estimated to be $12,788,000 upon project
completion.
21
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
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) 28 349,635 $ 7,779,202 $ 6,967,721 5.02%
The Limited Stores, Inc. (1) 50 320,771 7,149,748 6,552,446 4.72%
Footlocker, Inc. 27 126,208 2,955,700 2,586,939 1.86%
Zales 41 36,938 2,773,573 2,531,298 1.82%
Boscov's 7 1,308,706 3,137,572 2,345,972 1.69%
Dick's Sporting Goods 4 199,694 2,990,188 2,158,094 1.55%
Bed Bath & Beyond 6 203,543 2,681,393 1,816,558 1.31%
Sam Goody/Suncoast (1) 16 57,028 1,770,552 1,656,151 1.19%
JC Penney 9 841,212 1,681,575 1,550,470 1.12%
Circuit City 4 116,730 1,652,592 1,406,335 1.01%
Kay Bee Toys 14 75,685 1,518,335 1,349,230 0.97%
Trans World Entertainment 13 57,011 1,576,496 1,274,357 0.92%
Lenscrafters 11 53,511 1,390,199 1,259,771 0.91%
Payless Shoe Source (1) 22 66,286 1,409,664 1,241,979 0.89%
American Eagle Outfitters 10 50,863 1,424,530 1,236,002 0.89%
Best Buy 3 137,397 2,096,845 1,220,923 0.88%
Kay Jewelers 11 16,284 1,390,279 1,157,239 0.83%
PetSmart 4 104,755 1,721,271 1,083,724 0.78%
Barnes & Noble/B. Dalton 4 89,933 1,716,570 960,519 0.69%
Toys R Us 4 132,890 1,389,214 909,345 0.65%
--------- ---------- --------------- ------------------------ ------------------------
Total Top 20 Tenants 288 4,345,080 50,205,499 41,265,074 29.72%
--------- ---------- --------------- ------------------------ ------------------------
Total Retail Leased 1,689 11,665,884 $ 101,670,917 $ 138,839,092(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 3rd quarter
base rent. Straight line rent is not included in the base rent figures.
22
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
Retail Lease Expiration Schedule - Anchors(1)
Year Leases Gross Leasable Area
---- ------ -------------------
Number of Leases Percent of
Lease Expiration Year Expiring Expiring GLA Total
--------------------- ---------------- ------------ ----------
Prior (2) 0 - 0.00%
2003 0 - 0.00%
2004 4 280,367 5.20%
2005 1 136,633 2.53%
2006 3 414,992 7.69%
2007 4 327,160 6.06%
2008 5 625,909 11.60%
2009 3 206,252 3.82%
2010 1 202,765 3.76%
2011 3 335,585 6.22%
2012 2 241,940 4.48%
2013 2 71,634 1.33%
Thereafter 21 2,551,807 47.30%
---------------- ------------ ----------
Totals: 49 5,395,044 100%
================ ============ ==========
Year Annualized Base Rent
---- --------------------
Percent of
PREIT's Share of Total Average
Rent in Expiring Rent in Expiring (PREIT's Expiring Base
Lease Expiration Year Year Year (3) Share) Rent psf
- --------------------- ---------------- ---------------- ---------- -------------
Prior (2) $ - $ - 0.00% $ -
2003 - - 0.00% -
2004 594,240 522,384 2.90% 2.12
2005 1,250,000 1,250,000 6.94% 9.15
2006 849,731 849,731 4.71% 2.05
2007 930,893 920,993 5.11% 2.85
2008 1,223,065 781,465 4.34% 1.95
2009 1,502,609 979,504 5.43% 7.29
2010 725,507 725,507 4.03% 3.58
2011 2,305,126 1,152,563 6.39% 6.87
2012 350,707 313,826 1.74% 1.45
2013 1,073,994 1,073,994 5.96% 14.99
Thereafter 11,692,118 9,454,335 52.45% 4.58
---------------- ---------------- ---------- -------------
Totals: $ 22,497,989 $ 18,024,301 100% $ 4.17
================ ================ ========== =============
(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
ventures.
23
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
Retail Lease Expiration Schedule - Non Anchors(1)
Year Leases Gross Leasable Area
---- ------ -------------------
Number of Leases Percent of
Lease Expiration Year Expiring Expiring GLA Total
- --------------------- ---------------- ------------ ----------
Prior (2) 31 51,687 0.82%
2003 55 105,573 1.68%
2004 189 496,651 7.92%
2005 209 574,626 9.16%
2006 187 715,253 11.41%
2007 175 478,393 7.63%
2008 139 441,869 7.05%
2009 132 400,322 6.38%
2010 177 586,805 9.36%
2011 129 719,723 11.48%
2012 97 465,316 7.42%
2013 72 279,504 4.46%
Thereafter 48 955,118 15.23%
---------------- ------------ ----------
Totals: 1640 6,270,840 100%
Year Annualized Base Rent
---- --------------------
Percent of
PREIT's Share of Total
Rent in Expiring Rent in Expiring (PREIT's Average Expiring
Lease Expiration Year Year Year Share) Base Rent psf
- --------------------- ---------------- ---------------- ---------- ----------------
Prior (2) $ 1,040,221 $ 917,150 0.70% $ 20.13
2003 2,594,119 2,192,626 1.68% 24.57
2004 11,309,453 10,012,099 7.68% 22.77
2005 14,502,448 13,522,202 10.37% 25.24
2006 16,467,114 15,065,205 11.55% 23.02
2007 11,438,903 10,161,950 7.79% 23.91
2008 11,680,570 10,865,734 8.33% 26.43
2009 11,872,046 10,970,353 8.41% 29.66
2010 15,798,061 14,800,052 11.35% 26.92
2011 17,109,138 13,452,728 10.31% 23.77
2012 12,022,025 10,582,521 8.11% 25.84
2013 7,522,029 6,696,323 5.13% 26.91
Thereafter 15,802,792 11,186,188 8.58% 16.55
---------------- ---------------- ---------- ----------------
Totals: $ 149,158,919 $ 130,425,131 100% $ 23.79
================ ================ ========== ================
(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
ventures.
24
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
Leasing Activity Summary
RETAIL
Average Annualized
previous Average New Increase/ Tenant
Base Rent Base Rent Decrease in Improvements psf
New Lease Number GLA psf psf Base Rent psf (1)
- ------------------------ ----------- ---------- ------------- ------------ ------------- -----------------
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 5 16,243 26.72 32.85 6.13 3.08
4th Quarter - -
----------- ---------- ------------- ------------ ------------- -----------------
Total or Average 18 42,965 $ 28.98 $ 33.83 $ 4.85 $ 1.16
=========== ========== ============= ============ ============= =================
Previously Vacant Space:
1st Quarter 3 4,774 $ - $ 43.23 $ 43.23 $ -
2nd Quarter 10 24,388 - 24.53 24.53 0.50
3rd Quarter 17 180,911 6.35 6.35 0.74
4th Quarter - -
----------- ---------- ------------- ------------ ------------- -----------------
Total or Average 30 210,073 $ - $ 9.30 $ 9.30 0.70
=========== ========== ============= ============ ============= =================
Annualized TOTAL Annualized
Leasing costs of Leasing psf
Commissions (1)(2)
New Lease psf (1)(2)
- ------------------------ ----------- --------------------
Previously Leased Space:
1st Quarter $ - $ -
2nd Quarter - -
3rd Quarter - 3.08
4th Quarter -
----------- --------------------
Total or Average $ - $ 1.16
=========== ====================
Previously Vacant Space:
1st Quarter $ - $ -
2nd Quarter 0.50
3rd Quarter 0.74
4th Quarter -
----------- --------------------
Total or Average $ - $ 0.70
=========== ====================
Average Annualized
previous Average New Increase/ Tenant
Renewal (3) Base Rent Base Rent Decrease in Improvements psf
- ----------- Number GLA psf psf Base Rent psf (1)
----------- ---------- ------------- ------------ ------------- -----------------
1st Quarter 14 35,368 $ 22.87 $ 28.65 $ 5.78 $ -
2nd Quarter 11 35,004 15.02 20.02 5.00
3rd Quarter 21 159,503 11.77 12.65 0.88
4th Quarter -
----------- ---------- ------------- ------------ ------------- -----------------
Total or Average 46 229,875 $ 13.97 $ 16.23 $ 2.26 $ -
=========== ========== ============= ============ ============= =================
Annualized
Leasing TOTAL Annualized
Commissions Costs of Leasing psf
psf (1)(2) (1)(2)
----------- --------------------
1st Quarter $ - $ -
2nd Quarter -
3rd Quarter -
4th Quarter -
----------- --------------------
Total or Average $ - $ -
----------- --------------------
(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.
25
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
Capital Expenditures
Q3 03
(3 months ended September 30, 2003)
Retail Wholly Owned Joint Ventures Total
- ---------------------------------------------- ------------ -------------- -------------
New development projects $ 2,222,124 $ 3,764 $ 2,225,888
Redevelopment projects with incremental GLA 2,333,248 3,512 2,336,760
and/or Anchor Replacement -
Renovation with no incremental GLA -
Tenant allowances 508,803 82,668 591,471
Operational capital expenditures at properties: -
CAM expenditures 8,255 8,255
Non-CAM expenditures 465,079 140,957 606,036
------------ -------------- -------------
Total $ 5,537,509 $ 230,901 $ 5,768,410
============ ============== =============
External and internal leasing commissions for this period were $2,000
26
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
Enclosed Malls
(Includes Non-Anchor Owned Space)
Q303
--------------------------------------------------------------
Avg Base Avg % Rent Additional Avg Comp Occup. Cost
Rent psf psf (1) Charges psf sales psf Ratio
(1) (2)
----------- ---------- ----------- -------- -----------
Beaver Valley Mall $ 17.56 $ 0.43 $ 5.27 $ 243 9.57%
Cherry Hill Mall 35.24 0.83 16.12 413 12.64%
Dartmouth Mall 18.57 1.40 7.64 392 7.04%
Echelon Mall 23.38 0.20 11.88 242 14.65%
Exton Square Mall 33.91 0.51 8.47 363 11.82%
The Gallery at Market East 32.14 0.36 4.48 410 9.02%
Laurel Mall 13.10 0.51 4.69 263 6.96%
Lehigh Valley Mall 30.05 0.61 9.78 432 9.37%
Magnolia Mall (3) 24.36 1.22 8.72 317 10.82%
Moorestown Mall 24.37 0.63 12.70 331 11.39%
Palmer Park Mall 21.30 1.21 9.33 333 9.56%
Plymouth Meeting 18.87 0.47 8.19 264 10.43%
Prince Georges Plaza (3) 23.34 1.09 10.54 398 8.79%
Willow Grove Park 37.55 0.35 17.96 404 13.83%
----------- ---------- ----------- --------- -----------
Enclosed Malls weighted average $ 26.41 $ 0.61 $ 10.33 $ 345 10.82%
----------- ---------- ----------- --------- -----------
Wholly Owned Properties $ 25.73 $ 0.62 $ 9.96 $ 331 10.96%
Joint Venture Properties $ 28.17 $ 0.59 $ 11.28 $ 381 10.52%
----------- ---------- ----------- --------- -----------
PRI-managed $ 26.75 $ 0.62 $ 10.74 $ 339 11.25%
Non PRI-managed $ 24.68 $ 0.57 $ 8.17 $ 378 8.84%
----------- ---------- ----------- --------- -----------
Same Properties/Existing $ 22.49 $ 0.89 $ 8.16 $ 377 8.37%
New $ 27.91 $ 0.50 $ 11.16 $ 333 11.88%
Redevelopment Properties $ 23.70 $ 1.14 $ 9.90 $ 369 9.41%
% Change
--------------------------------------------------------------
Avg Base Avg % Rent Additional Avg Comp Occup. Cost
Rent psf psf Charges psf Sales psf Ratio
----------- ---------- ----------- --------- -----------
Beaver Valley Mall 0.0% -18.6% 0.1% -2.0% 0.16%
Cherry Hill Mall N/A N/A N/A N/A N/A
Dartmouth Mall 3.0% -14.7% 11.4% 0.5% 0.24%
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 2.1% -8.9% 8.0% -3.3% 0.44%
Lehigh Valley Mall 8.8% -32.2% 16.1% -1.2% 0.91%
Magnolia Mall (3) 21.9% -21.7% 5.2% 3.9% 1.04%
Moorestown Mall N/A N/A N/A N/A N/A
Palmer Park Mall 6.9% -15.3% -3.4% 0.9% 0.16%
Plymouth Meeting N/A N/A N/A N/A N/A
Prince Georges Plaza (3) 0.4% 13.8% 3.4% 1.0% 0.05%
Willow Grove Park 6.6% -22.6% 12.7% 3.1% 0.66%
----------- ---------- ----------- --------- -----------
Enclosed Malls weighted average 14.2% -28.8% 21.6% -2.8% 1.68%
----------- ---------- ----------- --------- -----------
Wholly Owned Properties 44.9% -38.6% 67.1% 6.9% 2.98%
Joint Venture Properties 6.5% -23.2% 12.0% -0.7% 0.79%
----------- ---------- ----------- --------- -----------
PRI-managed 16.0% -30.9% 16.3% 0.8% 1.37%
Non PRI-managed 6.2% -27.6% 13.2% -2.5% 0.78%
----------- ---------- ----------- --------- -----------
Same Properties/Existing 4.9% -18.7% 10.5% -1.5% 0.55%
New 8.7% 2.0% 9.7% 6.0% 0.31%
Redevelopment Properties 7.6% -3.9% 4.3% 2.4% 0.34%
Q302
--------------------------------------------------------------
Avg Base Avg % Additional Avg Comp Occup. Cost
Rent psf Rent Charges psf Sales psf Ratio
(1) psf (1) (2)
--------------------------------------------------------------
Beaver Valley Mall $ 17.55 $ 0.52 $ 5.27 $ 248 9.41%
Cherry Hill Mall N/A N/A N/A N/A N/A
Dartmouth Mall 18.02 1.64 6.86 390 6.80%
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 12.83 0.56 4.34 272 6.52%
Lehigh Valley Mall 27.62 0.89 8.43 437 8.45%
Magnolia Mall (3) 19.98 1.56 8.29 305 9.78%
Moorestown Mall N/A N/A N/A N/A N/A
Palmer Park Mall 19.94 1.43 9.65 330 9.40%
Plymouth Meeting N/A N/A N/A N/A N/A
Prince Georges Plaza (3) 23.24 0.96 10.20 394 8.73%
Willow Grove Park 35.22 0.46 15.94 392 13.17%
----------- ---------- ----------- --------- -----------
Enclosed Malls weighted average 23.12 0.86 8.50 355 9.15%
----------- ---------- ----------- --------- -----------
Wholly Owned Properties $ 17.76 $ 1.01 $ 5.96 $ 310 7.98%
Joint Venture Properties $ 26.44 $ 0.76 $ 10.07 $ 383 9.73%
----------- ---------- ----------- --------- -----------
PRI-managed $ 23.05 $ 0.89 $ 9.24 $ 336 9.88%
Non PRI-managed $ 23.24 $ 0.79 $ 7.22 $ 388 8.05%
----------- ---------- ----------- --------- -----------
Same Properties/Existing $ 21.43 $ 1.10 $ 7.38 $ 382 7.83%
New $ 25.68 $ 0.49 $ 10.17 $ 314 11.57%
Redevelopment Properties $ 22.02 $ 1.18 $ 9.49 $ 361 9.06%
(1) Base rent is actual for Q303. Additional charges and % rent are projections
for 2003.
(2) Average comparable sales for Q202 are actual. Sales for the Joint Venture
Q303 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
Q303
-----------------------------------------------------
Total Total In-Line only In-Line
w/Anchor % w/Anchor % (Non-Anchor) (Non-Anchor)
Leased Available % Leased % Available
----------- ---------- ------------ -------------
Beaver Valley Mall 89.8% 10.2% 78.1% 21.9%
Cherry Hill Mall 93.3% 6.7% 93.3% 6.7%
Dartmouth Mall 81.4% 18.6% 93.1% 6.9%
Echelon Mall 52.2% 47.8% 70.4% 29.6%
Exton Square Mall 96.1% 3.9% 90.5% 9.5%
The Gallery at Market East 94.5% 5.5% 94.5% 5.5%
Laurel Mall 96.3% 3.7% 89.9% 10.1%
Lehigh Valley Mall 90.7% 9.3% 86.4% 13.6%
Magnolia Mall 91.9% 8.1% 79.3% 20.7%
Moorestown Mall 96.2% 3.8% 91.4% 8.6%
Palmer Park Mall 98.5% 1.5% 95.0% 5.0%
Plymouth Meeting 74.3% 25.7% 91.8% 8.2%
Prince Georges Plaza 88.8% 11.2% 92.9% 7.1%
Willow Grove Park 95.0% 5.0% 91.7% 8.3%
----------- ---------- ------------ -------------
Enclosed Malls weighted average (1) 86.3% 13.7% 87.8% 12.2%
----------- ---------- ------------ -------------
Wholly Owned Properties 83.0% 17.0% 87.1% 12.9%
Joint Venture Properties 94.7% 5.3% 89.6% 10.4%
----------- ---------- ------------ -------------
PRI-managed 85.1% 14.9% 87.8% 12.2%
Non PRI-managed 93.2% 6.8% 87.5% 12.5%
----------- ---------- ------------ -------------
Same Properties/Existing 91.1% 8.9% 90.0% 10.0%
New 84.4% 15.6% 87.0% 13.0%
Redevelopment Properties 90.1% 9.9% 87.6% 12.4%
Occupancy
Change in % Occupancy
-----------------------------------------------------
Total Total In-Line only In-Line
w/Anchor % w/Anchor % (Non-Anchor) (Non-Anchor)
Leased Available % Leased % Available
----------- ---------- ------------ -------------
Beaver Valley Mall -1.8% 1.8% -3.8% 3.8%
Cherry Hill Mall N/A N/A N/A N/A
Dartmouth Mall -12.1% 12.1% 5.6% -5.6%
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 0.2% -0.2% 0.6% -0.6%
Lehigh Valley Mall -5.6% 5.6% -8.2% 8.2%
Magnolia Mall 5.5% -5.5% -8.6% 8.6%
Moorestown Mall N/A N/A N/A N/A
Palmer Park Mall 3.2% -3.2% 10.6% -10.6%
Plymouth Meeting N/A N/A N/A N/A
Prince Georges Plaza -0.2% 0.2% -0.6% 0.6%
Willow Grove Park -1.0% 1.0% -1.7% 1.7%
----------- ---------- ------------ -------------
Enclosed Malls weighted average (1) -8.1% 8.1% -1.2% 1.2%
----------- ---------- ------------ -------------
Wholly Owned Properties -9.4% 9.4% 2.8% -2.8%
Joint Venture Properties -1.3% 1.3% -2.5% 2.5%
----------- ---------- ------------ -------------
PRI-managed -8.6% 8.6% 1.1% -1.1%
Non PRI-managed -3.0% 3.0% -5.5% 5.5%
----------- ---------- ------------ -------------
Same Properties/Existing -4.2% 4.2% -0.4% 0.4%
New N/A N/A N/A N/A
Redevelopment Properties 2.3% -2.3% -3.7% 3.7%
Q302
-----------------------------------------------------
Total Total In-Line only In-Line
w/Anchor % w/Anchor % (Non-Anchor) (Non-Anchor)
Leased Available % Leased % Available
----------- ---------- ------------ -------------
Beaver Valley Mall 91.6% 8.4% 82.0% 18.0%
Cherry Hill Mall N/A N/A N/A N/A
Dartmouth Mall 93.5% 6.5% 87.5% 12.5%
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 96.0% 4.0% 89.3% 10.7%
Lehigh Valley Mall 96.3% 3.7% 94.6% 5.4%
Magnolia Mall 86.3% 13.7% 87.9% 12.1%
Moorestown Mall N/A N/A N/A N/A
Palmer Park Mall 95.4% 4.6% 84.4% 15.6%
Plymouth Meeting N/A N/A N/A N/A
Prince Georges Plaza 89.0% 11.0% 93.5% 6.5%
Willow Grove Park 96.0% 4.0% 93.4% 6.6%
----------- ---------- ------------ -------------
Enclosed Malls weighted average (1) 94.5% 5.5% 88.9% 11.1%
----------- ---------- ------------ -------------
Wholly Owned Properties 92.3% 7.7% 84.3% 15.7%
Joint Venture Properties 96.0% 4.0% 92.1% 7.9%
----------- ---------- ------------ -------------
PRI-managed 93.7% 6.3% 86.8% 13.2%
Non PRI-managed 96.2% 3.8% 93.0% 7.0%
----------- ---------- ------------ -------------
Same Properties/Existing 95.3% 4.7% 90.4% 9.6%
New N/A N/A N/A N/A
Redevelopment Properties 87.8% 12.2% 91.3% 8.7%
(1) Magnolia Mall and Prince Georges Plaza are classified as a redevelopment
property and are not included in the weighted average.
27
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
Power Centers
(Includes Non-Anchor Owned Space)
Q303 % Change
----------------------------------- ----------------------------------
Avg Base Avg % Additional Avg Base Avg % Additional
Rent psf Rent psf Charges Rent psf Rent psf Charges
(1) (1) psf psf
---------- ---------- ----------- -------- -------- -----------
Christiana Power Center $ 19.37 $ - $ 1.84 0.0% N/A 8.5%
Creekview Shopping Center 14.33 - 2.74 6.6% N/A 34.3%
Northeast Tower Center 13.61 - 3.40 1.2% N/A 18.2%
Paxton Towne Center 15.93 - 2.61 1.0% N/A 36.0%
The Court at Oxford Valley 15.13 0.03 3.77 -1.0% N/A 1.7%
Red Rose Commons 13.22 0.02 2.89 0.0% -35.2% -2.8%
Whitehall Mall 10.64 0.36 3.01 -2.4% 47.0% 7.4%
Metroplex Shopping Center 18.13 - 3.45 0.0% N/A 1.1%
---------- ---------- ----------- -------- -------- -----------
Power Centers weighted average $ 15.13 $ 0.05 $ 3.09 -0.1% 50.9% 7.9%
---------- ---------- ----------- -------- -------- -----------
Wholly Owned Properties $ 15.55 $ - $ 2.72 0.7% N/A 25.6%
Joint Venture Properties $ 14.89 $ 0.08 $ 3.31 -0.6% 52.4% 1.4%
---------- ---------- ----------- -------- -------- -----------
PRI-managed $ 15.55 $ - $ 2.72 0.7% N/A 25.6%
Non PRI-managed $ 14.89 $ 0.08 $ 3.31 -0.6% 52.4% 1.4%
---------- ---------- ----------- -------- -------- -----------
Same Properties/Existing $ 15.13 $ 0.05 $ 3.09 -0.1% 50.9% 7.9%
New $ - $ - $ - N/A N/A N/A
Redevelopment Properties $ - $ - $ - N/A N/A N/A
Q302
-----------------------------------
Avg Base Avg % Additional
Rent psf Rent psf Charges
(1) (1) psf
---------- ---------- -----------
Christiana Power Center $ 19.37 $ - $ 1.69
Creekview Shopping Center 13.44 - 2.04
Northeast Tower Center 13.44 - 2.87
Paxton Towne Center 15.77 - 1.92
The Court at Oxford Valley 15.28 - 3.70
Red Rose Commons 13.22 0.03 2.97
Whitehall Mall 10.89 0.24 2.80
Metroplex Shopping Center 18.13 - 3.41
---------- ---------- -----------
Power Centers weighted average $ 15.14 $ 0.03 $ 2.87
---------- ---------- -----------
Wholly Owned Properties $ 15.44 $ - $ 2.17
Joint Venture Properties $ 14.97 $ 0.05 $ 3.27
---------- ---------- -----------
PRI-managed $ 15.44 $ - $ 2.17
Non PRI-managed $ 14.97 $ 0.05 $ 3.27
---------- ---------- -----------
Same Properties/Existing $ 15.14 $ 0.03 $ 2.87
New $ - $ - $ -
Redevelopment Properties $ - $ - $ -
(1) Base rent is actual for Q303. Additional charges and % rent are projections
for 2003.
Q303
----------------------------------------------------
Total Total In-Line only In-Line
w/Anchor w/Anchor % (Non-Anchor) (Non-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
----------------------------------------------------
Total Total In-Line only In-Line
w/Anchor w/Anchor % (Non-Anchor) (Non-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 2.7% -2.7% 4.0% -4.0%
The Court at Oxford Valley -2.9% 2.9% -4.7% 4.7%
Red Rose Commons 0.0% 0.0% 0.0% 0.0%
Whitehall Mall 0.0% 0.0% -0.1% 0.1%
Metroplex Shopping Center 0.0% 0.0% 0.0% 0.0%
--------- ---------- ------------ ------------
Power Centers weighted average 0.0% 0.0% -0.1% 0.1%
--------- ---------- ------------ ------------
Wholly Owned Properties 1.3% -1.3% 1.6% -1.6%
Joint Venture Properties -0.8% 0.8% -1.1% 1.1%
--------- ---------- ------------ ------------
PRI-managed 1.3% -1.3% 1.6% -1.6%
Non PRI-managed -0.8% 0.8% -1.1% 1.1%
--------- ---------- ------------ ------------
Same Properties/Existing 0.0% 0.0% -0.1% 0.1%
New N/A N/A N/A N/A
Redevelopment Properties N/A N/A N/A N/A
Q302
----------------------------------------------------
Total Total In-Line only In-Line
w/Anchor w/Anchor % (Non-Anchor) (Non-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 88.0% 12.0% 81.9% 18.1%
The Court at Oxford Valley 100.0% 0.0% 100.0% 0.0%
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% 96.5% 3.5%
--------- ---------- ------------ ------------
Wholly Owned Properties 95.6% 4.4% 92.6% 7.4%
Joint Venture Properties 99.1% 0.9% 98.8% 1.2%
--------- ---------- ------------ ------------
PRI-managed 95.6% 4.4% 92.6% 7.4%
Non PRI-managed 99.1% 0.9% 98.8% 1.2%
--------- ---------- ------------ ------------
Same Properties/Existing 97.7% 2.3% 96.5% 3.5%
New N/A N/A N/A N/A
Redevelopment Properties N/A N/A N/A N/A
28
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
Strip Centers
(Includes Non-Anchor Owned Space)
Q303 % Change Q302
--------------------------------- --------------------------------- ---------------------------------
Avg Base Avg % Avg Base Avg % Additional
Rent psf Rent psf Additional Avg Base Avg % Additional Rent psf Rent psf Charges
(1) (1) Charges psf Rent psf Rent psf Charges psf (1) (1) psf
-------- -------- ----------- -------- -------- ----------- -------- -------- -----------
Crest Plaza Shopping
Center $ 15.21 $ - $ 3.74 10.3% -100.0% 217.0% $ 13.78 $ 0.94 $ 1.18
Festival at Exton 16.56 - 3.89 8.8% N/A 24.3% 15.22 - 3.13
The Commons at Magnolia 12.81 0.03 1.57 3.5% -57.2% 70.8% 12.37 0.08 0.92
Rio Mall 5.89 - 0.25 -4.8% N/A -23.0% 6.18 - 0.32
South Blanding Village 8.96 - 2.61 2.2% N/A 17.5% 8.77 - 2.22
Springfield Park I & II 17.95 - 5.40 3.6% -100.0% 8.6% 17.33 0.15 4.97
======== ======== =========== ======== ======== =========== ======== ======== ===========
Strip Centers weighted
average (2) $ 13.45 $ 0.01 $ 2.92 -0.3% -85.1% 4.2% $ 13.50 $ 0.05 $ 2.80
======== ======== =========== ======== ======== =========== ======== ======== ===========
Wholly Owned Properties $ 13.93 $ 0.01 $ 2.91 5.8% -48.4% 23.2% $ 13.16 $ 0.02 $ 2.36
Joint Venture Properties $ 12.21 $ - $ 2.95 -13.6% -100.0% -19.0% $ 14.13 $ 0.11 $ 3.64
======== ======== =========== ======== ======== =========== ======== ======== ===========
PRI-managed $ 14.60 $ 0.01 $ 3.33 2.1% -84.6% 8.2% $ 14.30 $ 0.06 $ 3.07
Non PRI-managed $ 5.89 $ - $ 0.25 -4.8% N/A -23.0% $ 6.18 $ - $ 0.32
======== ======== =========== ======== ======== =========== ======== ======== ===========
Same Properties/Existing $ 13.65 $ - $ 3.32 -0.6% -100.0% 4.0% $ 13.73 $ 0.05 $ 3.20
New $ 12.81 $ 0.03 $ 1.57 3.5% -57.2% 70.8% $ 12.37 $ 0.08 $ 0.92
Redevelopment Properties $ 15.21 $ - $ 3.74 10.3% -100.0% 217.0% $ 13.78 $ 0.94 $ 1.18
======== ======== =========== ======== ======== =========== ======== ======== ===========
(1) Base rent is actual for Q303. Additional charges and % rent are projections
for 2003.
(2) Crest Plaza is classified as a Redevelopment Property and is not included
in the weighted average.
Occupancy
Q303 Change in % Occupancy
--------------------------------------------- ---------------------------------------------
In-Line In-Line
Total In-Line (Non- Total In-Line (Non-
Total w/Anchor only (Non- Anchor) Total w/Anchor only (Non- Anchor)
w/Anchor % Anchor) % w/Anchor % Anchor) %
% Leased Available % Leased Available % Leased Available % Leased Available
-------- --------- ---------- --------- -------- --------- ---------- ---------
Crest Plaza Shopping
Center 84.7% 15.3% 73.5% 26.5% 38.0% -38.0% 42.3% -42.3%
Festival at Exton 95.5% 4.5% 92.3% 7.7% -2.0% 2.0% -3.4% 3.4%
The Commons at Magnolia 97.6% 2.4% 95.3% 4.7% 8.2% -8.2% 16.9% -16.9%
Rio Mall 99.6% 0.4% 97.8% 2.2% 0.0% 0.0% 0.6% -0.6%
South Blanding Village 97.4% 2.6% 91.4% 8.6% 0.0% 0.0% 0.0% 0.0%
Springfield Park I & II 90.9% 9.1% 73.5% 26.5% 0.4% -0.4% -9.2% 9.2%
======== ========= ========== ========= ======== ========= ========== =========
Strip Centers weighted
average (1) 96.3% 3.7% 90.2% 9.8% 0.9% -0.9% 1.7% -1.7%
======== ========= ========== ========= ======== ========= ========== =========
Wholly Owned Properties 96.7% 3.3% 93.1% 6.9% 1.6% -1.6% 3.4% -3.4%
Joint Venture Properties 95.8% 4.2% 83.3% 16.7% 0.2% -0.2% -3.0% 3.0%
======== ========= ========== ========= ======== ========= ========== =========
PRI-managed 95.2% 4.8% 89.1% 10.9% 1.2% -1.2% 1.5% -1.5%
Non PRI-managed 99.6% 0.4% 97.8% 2.2% 0.0% 0.0% 0.6% -0.6%
======== ========= ========== ========= ======== ========= ========== =========
Same Properties/Existing 96.1% 3.9% 88.7% 11.3% -0.4% 0.4% -2.2% 2.2%
New 97.6% 2.4% 95.3% 4.7% 8.2% -8.2% 16.9% -16.9%
Redevelopment Properties 84.7% 15.3% 73.5% 26.5% 38.0% -38.0% 42.3% -42.3%
======== ========= ========== ========= ======== ========= ========== =========
Q302
---------------------------------------------
In-Line
Total In-Line (Non-
Total w/Anchor only (Non- Anchor)
w/Anchor % Anchor) %
% Leased Available % Leased Available
-------- --------- ---------- ---------
Crest Plaza Shopping
Center 46.8% 53.2% 31.2% 68.8%
Festival at Exton 97.5% 2.5% 95.7% 4.3%
The Commons at Magnolia 89.4% 10.6% 78.4% 21.6%
Rio Mall 99.6% 0.4% 97.1% 2.9%
South Blanding Village 97.4% 2.6% 91.4% 8.6%
Springfield Park I & II 90.6% 9.4% 82.7% 17.3%
======== ========= ========== =========
Strip Centers weighted
average (1) 95.4% 4.6% 88.5% 11.5%
======== ========= ========== =========
Wholly Owned Properties 95.1% 4.9% 89.6% 10.4%
Joint Venture Properties 95.7% 4.3% 86.4% 13.6%
======== ========= ========== =========
PRI-managed 93.9% 6.1% 87.6% 12.4%
Non PRI-managed 99.6% 0.4% 97.1% 2.9%
======== ========= ========== =========
Same Properties/Existing 96.5% 3.5% 90.9% 9.1%
New 89.4% 10.6% 78.4% 21.6%
Redevelopment Properties 46.8% 53.2% 31.2% 68.8%
======== ========= ========== =========
(1) Crest Plaza is classified as a Redevelopment Property and is not included
in the weighted average.
29
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
Retail Portfolio
(Includes Non-Anchor Owned Space)
Q303 % Change
------------------------------- --------------------------------
Avg Base Avg% Additional Avg Base Avg% Additional
Rent psf Rent psf Charges Rent psf Rent psf Charges
(1) (1) psf(1) (1) (1) psf(1)
-------- -------- ---------- -------- -------- ----------
Retail Portfolio weighted average (2) $ 22.28 $ 0.41 $ 7.71 19.5% 0.2% 42.8%
-------- -------- ---------- -------- -------- ----------
Wholly Owned Properties (2) $ 23.19 $ 0.47 $ 8.22 42.8% 4.6% 112.5%
Joint Venture Properties $ 20.87 $ 0.31 $ 6.94 3.5% -18.4% 8.7%
-------- -------- ---------- -------- -------- ----------
PRI-managed (2) $ 24.23 $ 0.48 $ 9.00 24.1% -3.6% 46.0%
Non PRI-managed $ 17.98 $ 0.24 $ 4.87 1.6% -20.8% 6.2%
-------- -------- ---------- -------- -------- ----------
Same Properties/Existing $ 17.50 $ 0.33 $ 4.80 2.0% -15.8% 9.0%
New $ 27.63 $ 0.49 $ 10.98 10.7% 5.1% 13.5%
Redevelopment Properties (2) $ 23.00 $ 1.04 $ 9.39 6.5% -10.9% 3.7%
Q302
-------------------------------
Avg Base Avg% Additional
Rent psf Rent psf Charges
(1) (1) psf(1)
-------- -------- ----------
Retail Portfolio weighted average (2) $ 18.64 $ 0.41 $ 5.40
--------- -------- ----------
Wholly Owned Properties (2) $ 16.24 $ 0.45 $ 3.87
Joint Venture Properties $ 20.18 $ 0.38 $ 6.38
--------- -------- ----------
PRI-managed (2) $ 19.52 $ 0.50 $ 6.17
Non PRI-managed $ 17.71 $ 0.31 $ 4.59
--------- -------- ----------
Same Properties/Existing $ 17.16 $ 0.39 $ 4.40
New $ 24.95 $ 0.47 $ 9.67
Redevelopment Properties (2) $ 21.60 $ 1.17 $ 9.06
(1) Base rent is actual for Q303. 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.
Occupancy
Q303 Change in % Occupancy
-------------------------------------------- --------------------------------------------
In-Line In-Line
Total In-line (Non- Total In-line (Non-
Total w/Anchor only(Non- Anchor) Total w/Anchor only(Non- Anchor)
w/Anchor % Anchor) % w/Anchor % Anchor) %
% Leased Available % Leased Available % Leased Available % Leased Available
-------- --------- --------- --------- -------- ---------- --------- ---------
Retail Portfolio weighted average (1) 89.9% 10.1% 90.5% 9.5% -5.9% 5.9% -2.0% 2.0%
-------- --------- --------- --------- -------- ---------- --------- ---------
Wholly Owned Properties (1) 86.2% 13.8% 88.7% 11.3% -7.7% 7.7% 0.2% -0.2%
Joint Venture Properties 96.3% 3.7% 93.4% 6.6% -1.0% 1.0% -1.8% 1.8%
-------- --------- --------- --------- -------- ---------- --------- ---------
PRI-managed (1) 87.5% 12.5% 88.9% 11.1% -6.7% 6.7% 0.2% -0.2%
Non PRI-managed 96.4% 3.6% 94.0% 6.0% -1.6% 1.6% -2.6% 2.6%
-------- --------- --------- --------- -------- ---------- --------- ---------
Same Properties/Existing 95.0% 5.0% 93.7% 6.3% -1.7% 1.7% -0.3% 0.3%
New 84.6% 15.4% 87.1% 12.9% -8.4% 8.4% 0.8% -0.8%
Redevelopment Properties (1) 89.7% 10.3% 86.2% 13.8% 6.2% -6.2% 3.2% -3.2%
Q302
---------------------------------------------
In-Line
Total In-line (Non-
Total w/Anchor only(Non- Anchor)
w/Anchor % Anchor) %
% Leased Available % Leased Available
-------- --------- --------- ---------
Retail Portfolio weighted average (1) 95.8% 4.2% 92.4% 7.6%
-------- --------- --------- ---------
Wholly Owned Properties (1) 93.9% 6.1% 88.5% 11.5%
Joint Venture Properties 97.2% 2.8% 95.2% 4.8%
-------- --------- --------- ---------
PRI-managed (1) 94.2% 5.8% 88.8% 11.2%
Non PRI-managed 98.0% 2.0% 96.7% 3.3%
-------- --------- --------- ---------
Same Properties/Existing 96.6% 3.4% 94.0% 6.0%
New 93.0% 7.0% 86.3% 13.7%
Redevelopment Properties (1) 83.5% 16.5% 83.0% 17.0%
(1) Crest Plaza, Magnolia Mall and Prince Georges Plaza are classified as
Redevelopment Properties and are not included in the weighted average.
30
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI 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 17 properties representing
about 4.7 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
September 30, 2003
----------------------------------------------------------------------------
Retail Multifamily Office/ Industrial TOTAL
---------------- ----------------- ------------------ ----------------
# sq ft # sq ft # sq ft # sq ft
---------------- ----------------- ------------------ ----------------
Managed Portfolio
PREIT-Owned (1) 21 13,390,631 - - 4 254,791 25 13,645,422
Non-PREIT Owned (1)(2) 12 3,338,954 - - 3 757,238 15 4,096,192
---------------- ----------------- ------------------ ----------------
TOTAL 33 16,729,585 - - 7 1,012,029 40 17,741,614
---------------- ----------------- ------------------ ----------------
Leased Portfolio
PREIT-Owned - - - - - - -
Non-PREIT Owned 1 503,716 - - 1 119,482 2 623,198
---------------- ----------------- ------------------ ----------------
TOTAL 1 503,716 - - 1 119,482 2 623,198
---------------- ----------------- ------------------ ----------------
Asset Managed Portfolio
PREIT-Owned (1) 7 4,254,969 - - - - 7 4,254,969
Non-PREIT Owned - - - - - - - -
---------------- ----------------- ------------------ ----------------
TOTAL 7 4,254,969 - - - - 7 4,254,969
---------------- ----------------- ------------------ ----------------
Total Portfolio
PREIT-Owned 28 17,645,600 - - 4 254,791 32 17,900,391
Non-PREIT Owned 13 3,842,670 - - 4 876,720 17 4,719,390
---------------- ----------------- ------------------ ----------------
TOTAL 41 21,488,270 - - 8 1,131,511 49 22,619,781
================ ================= ================== ================
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 (1)(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 (1) 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
================ ================= ================== ================
NET GAIN (LOSS) IN CONTRACTS
----------------------------------------------------------------------------
Retail Multifamily Office/ Industrial TOTAL
---------------- ----------------- ------------------ ----------------
# sq ft # sq ft # sq ft # sq ft
---------------- ----------------- ------------------ ----------------
Managed Portfolio
PREIT-Owned (1) - 145,373 (2) (1,338,000) - - (2) (1,192,627)
Non-PREIT Owned (1)(2) (1) (836,357) (1) (56,250) (1) (170,097) (3) (1,062,704)
---------------- ----------------- ------------------ ----------------
TOTAL (1) (690,984) (3) (1,394,250) (1) (170,097) (5) (2,255,331)
---------------- ----------------- ------------------ ----------------
Leased Portfolio
PREIT-Owned - - - - - - - -
Non-PREIT Owned (1) (596,244) - - - - (1) (596,244)
---------------- ----------------- ------------------ ----------------
TOTAL (1) (596,244) - - - - (1) (596,244)
---------------- ----------------- ------------------ ----------------
Asset Managed Portfolio
PREIT-Owned (1) - (7) (2) (384,000) - - (2) (384,007)
Non-PREIT Owned - - - - - - - -
---------------- ----------------- ------------------ ----------------
TOTAL - (7) (2) (384,000) - - (2) (384,007)
---------------- ----------------- ------------------ ----------------
Total Portfolio
PREIT-Owned - 145,366 (4) (1,722,000) - - (4) (1,576,634)
Non-PREIT Owned (2) (1,432,601) (1) (56,250) (1) (170,097) (4) (1,658,948)
---------------- ----------------- ------------------ ----------------
TOTAL (2) (1,287,235) (5) (1,778,250) (1) (170,097) (8) (3,235,582)
================ ================= ================== ================
(1) The decrease in PREIT owned GLA resulted from the sale of PREIT two
wholly-owned and two joint venture multifamily properties.
(2) The reduction in Non-PREIT owned GLA resulted from the sale of Harrisburg
East Mall and 400 Market office building.
31
Pennsylvania REIT
FLASH REPORT (SEPTEMBER 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
Financial Statement
Q3 03
(3 months ended 9/30/03)
-----------------------------------------------------------------------
Corporate/
Other
Retail Multifamily Properties TOTAL % Change
--------------- ------------- ------------ -------------- --------
Real Estate Revenues:
Same Store $ 18,477,804 $ 0 $ 87,781 $ 18,565,585 0.5%
New 28,460,729 - - 28,460,729 N/A
Redevelopment 5,563,331 - - 5,563,331 N/A
Discontinued Operations - 1,331,576 - 1,331,576
-------------- ------------- ------------ -------------- --------
Total Real Estate Revenues 52,501,864 1,331,576 87,781 53,921,221 35.0%
-------------- ------------- ------------ -------------- --------
Operating Expenses (includes
minority interest in properties):
Same Store 4,934,977 - 3,884 4,938,861 8.7%
New 14,179,161 - - 14,179,161 N/A
Redevelopment 1,924,484 - - 1,924,484 N/A
Discontinued Operations - 712,486 712,486 -88.6%
-------------- ------------- ------------ -------------- --------
Total Operating Expenses 21,038,622 712,486 3,884 21,754,992 61.5%
-------------- ------------- ------------ -------------- --------
NOI:
Same Store 13,542,827 - 83,897 13,626,724 -2.2%
New 14,281,568 - - 14,281,568 N/A
Redevelopment 3,638,847 - - 3,638,847 N/A
Discontinued Operations - 619,090 - 619,090 -92.4%
-------------- ------------- ------------ -------------- --------
NOI (2) 31,463,242 619,090 83,897 32,166,229 21.5%
-------------- ------------- ------------ -------------- --------
OTHER INCOME (EXPENSES):
Management Company Revenue - - 1,972,607 1,972,607 -19.3%
Interest Income - - 217,023 217,023 50.7%
General & Administrative
Corporate Payroll - - (3,707,416) (3,707,416) 0.3%
Other G&A Expenses - - (4,615,793) (4,615,793) 83.4%
-------------- ------------- ------------ -------------- --------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 31,463,242 619,090 (6,049,682) 26,032,650 13.9%
-------------- ------------- ------------ -------------- --------
Interest Expense (11,243,044) (222,542) - (11,465,586) 8.2%
Depreciation and Amortization (10,213,658) - (12,788) (10,226,446) 39.2%
Gain(loss) on Sale of Interests in RE - 6,228,839 6,228,839 N/A
DISCONTINUED OPERATIONS
Income from Disposed Real Estate - - - - N/A
Minority Interest of O.P. Unitholders - - (2,382,461) (2,382,461) N/A
Gain(loss) on Disposition of
Discontinued Operations 27,725,759 - 27,725,759 N/A
-------------- ------------- ------------ -------------- --------
TOTAL DISCONTINUED OPERATIONS - 27,725,759 (2,382,461) 25,343,298 N/A
-------------- ------------- ------------ -------------- --------
Extraordinary item(Loss on early
extinguishment of debt) - - - - N/A
Minority Interest of O.P. Unit - - (989,253) (989,253) 297.4%
Holders
-------------- ------------- ------------ -------------- --------
NET INCOME 10,006,540 34,351,146 (9,434,184) 34,923,502 327.1%
-------------- ------------- ------------ -------------- --------
Gain on Sale of Real Estate - (33,954,598) - (33,954,598) N/A
Depreciation and Amor. of Real Estate 10,213,658 - 12,788 10,226,446 39.2%
FFO Adjustments - - 3,306,714 3,306,714 285.5%
-------------- ------------- ------------ -------------- --------
FFO 20,220,198 396,548 (6,114,682) 14,502,064 17.9%
-------------- ------------- ------------ -------------- --------
Adj. Straight Lining of Base Rents (765,238) - - (765,238) 189.6%
Recurring Capital Expenditures (108,438) (122,635) - (231,073) -68.3%
Amortization of debt premium (1,742,283) (1,742,283)
-------------- ------------- ------------ -------------- --------
FAD $ 17,604,239 $ 273,913 (6,114,682) $ 11,763,470 4.1%
-------------- ------------- ------------ -------------- --------
Dividends $ 12,718,682 38.5%
Share Price (at close) $ 33.45 29.9%
Weighted Average Number of Shares 19,488,367 17.6%
WA number of Shares and O.P. Units 21,537,479 17.7%
-------------- ------------- ------------ -------------- --------
Net Income/Share $ 1.79 263.0%
FFO/Share and O.P. Units $ 0.67 0.2%
FAD/Share and O.P. Units $ 0.55 -11.5%
Dividend/Share and O.P. Units $ 0.51 0.0%
============== ============= ============ ============== ========
Q3 02
(3 months ended 9/30/02)
-----------------------------------------------------------
Corporate/
Other
Retail Multifamily Properties TOTAL
-------------- ------------- ------------ --------------
Real Estate Revenues:
Same Store $ 18,386,810 $ 0 $ 82,858 $ 18,469,668
New 1,772,287 - - 1,772,287
Redevelopment 5,290,158 - - 5,290,158
Discontinued Operations - 14,418,208 - 14,418,208
-------------- ------------- ------------ --------------
Total Real Estate Revenues 25,449,255 14,418,208 82,858 39,950,321
-------------- ------------- ------------ --------------
Operating Expenses (includes
minority interest in properties):
Same Store 4,532,300 - 10,041 4,542,341
New 728,331 - - 728,331
Redevelopment 1,942,062 - - 1,942,062
Discontinued Operations - 6,259,004 6,259,004
-------------- ------------- ------------ --------------
Total Operating Expenses 7,202,693 6,259,004 10,041 13,471,738
-------------- ------------- ------------ --------------
NOI:
Same Store 13,854,510 - 72,817 13,927,327
New 1,043,956 - - 1,043,956
Redevelopment 3,348,096 - - 3,348,096
Discontinued Operations - 8,159,204 8,159,204
-------------- ------------- ------------ --------------
NOI (2) 18,246,562 8,159,204 72,817 26,478,583
-------------- ------------- ------------ --------------
OTHER INCOME (EXPENSES):
Management Company Revenue - - 2,443,592 2,443,592
Interest Income - - 144,042 144,042
General & Administrative
Corporate Payroll - - (3,695,921) (3,695,921)
Other G&A Expenses - - (2,516,173) (2,516,173)
-------------- ------------- ------------ --------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 18,246,562 8,159,204 (3,551,643) 22,854,123
-------------- ------------- ------------ --------------
Interest Expense (7,075,154) (3,525,258) - (10,600,412)
Depreciation and Amortization (5,021,188) (2,312,496) (12,915) (7,346,599)
Gain(loss) on Sale of Interests in RE 4,085,164 - - 4,085,164
DISCONTINUED OPERATIONS
Income from Disposed Real Estate 71,772 - - 71,772
Minority Interest of O.P. Unitholders - - (637,292) (637,292)
Gain(loss) on Disposition of
Discontinued Operations - - - -
-------------- ------------- ------------ --------------
TOTAL DISCONTINUED OPERATIONS 71,772 - (637,292) (565,520)
-------------- ------------- ------------ --------------
Extraordinary item(Loss on early - - -
extinguishment of debt)
Minority Interest of O.P. Unit
Holders - - (248,916) (248,916)
-------------- ------------- ------------ --------------
NET INCOME 10,307,156 2,321,450 (4,450,766) 8,177,840
-------------- ------------- ------------ --------------
Gain on Sale of Real Estate (4,085,164) - - (4,085,164)
Depreciation and Amor. of Real Estate 5,021,188 2,312,496 12,915 7,346,599
FFO Adjustments - - 857,692 857,692
-------------- ------------- ------------ --------------
FFO 11,243,180 4,633,946 (3,580,159) 12,296,967
-------------- ------------- ------------ --------------
Adj. Straight Lining of Base Rents (264,272) - - (264,272)
Recurring Capital Expenditures (51,332) (678,058) - (729,390)
Amortization of debt premium - - - -
-------------- ------------- ------------ --------------
FAD $ 10,927,576 $ 3,955,888 $ (3,580,159) $ 11,303,305
-------------- ------------- ------------ --------------
Dividends $ 9,182,493
Share Price (at close) $ 25.76
Weighted Average Number of Shares 16,566,418
WA number of Shares and O.P. Units 18,305,378
-------------- ------------- ------------ --------------
Net Income/Share $ 0.49
FFO/Share and O.P. Units $ 0.67
FAD/Share and O.P. Units $ 0.62
Dividend/Share and O.P. Units $ 0.51
============== ============= ============ ==============
Balance Sheet
Q3 03
--------------------------------------------------------------
Corporate/
Other %
Retail Multifamily Properties Total Change
--------------- ------------- ------------- --------------- --------
Investment in Real Estate, at cost $ 1,289,890,542 $ - $ 20,178,064 $ 1,310,068,606 41.4%
Accumulated Depreciation (95,312,157) - (2,064,231) (97,376,388) -42.5%
Investment in and advances to
Partnership and JVs - - 1,200,000 1,200,000 186.5%
Other Assets 114,932,077 1,177,015 59,001,877 175,110,969 89.5%
--------------- ------------- ------------- --------------- --------
Total Assets $ 1,309,510,462 $ 1,177,015 $ 78,315,710 $ 1,389,003,187 63.5%
--------------- ------------- ------------- --------------- --------
Mortgage Notes $ 739,061,360 $ - $ - $ 739,061,360 54.3%
Line of Credit - - - - -100.0%
Acquisition Term Loan & Unsecured
Line of Credit - - - - N/A
Other Liabilities 27,237,935 951,750 15,155,079 43,344,764 37.9%
--------------- ------------- ------------- --------------- --------
Total Liabilities $ 766,299,295 $ 951,750 $ 15,155,079 $ 782,406,124 24.0%
--------------- ------------- ------------- --------------- --------
Minority Interest $ 5,991,467 - $ 58,270,123 $ 64,261,590 101.6%
Total Shareholders Equity - - 542,335,473 542,335,473 190.0%
--------------- ------------- ------------- --------------- --------
Total Liabilities and Shareholder
Equity $ 772,290,762 $ 951,750 $ 615,760,675 $ 1,389,003,187 63.5%
--------------- ------------- ------------- --------------- --------
Q3 02
--------------------------------------------------------------
Corporate/
Other
Retail Multifamily Properties Total
--------------- ------------- ------------- ---------------
Investment in Real Estate, at cost $ 614,624,880 $ 287,375,109 $ 24,422,106 $ 926,422,095
Accumulated Depreciation (74,726,868) (92,749,150) (2,012,698) (169,488,716)
Investment in and advances to
Partnership and JVs - - 418,851 418,851
Other Assets 46,280,608 10,628,350 35,488,763 92,397,721
--------------- ------------- ------------- ---------------
Total Assets $ 586,178,620 $ 205,254,309 $ 58,317,022 $ 849,749,951
--------------- ------------- ------------- ---------------
Mortgage Notes $ 281,212,563 $ 197,701,413 $ - $ 478,913,976
Line of Credit 87,952,970 - 32,547,030 120,500,000
Acquisition Term Loan & Unsecured
Line of Credit - - - -
Other Liabilities 12,095,668 8,776,694 10,561,956 31,434,318
--------------- ------------- ------------- ---------------
Total Liabilities $ 381,261,201 $ 206,478,107 $ 43,108,986 $ 630,848,294
--------------- ------------- ------------- ---------------
Minority Interest $ 126,715 - $ 31,755,163 $ 31,881,878
Total Shareholders Equity - - 187,019,779 187,019,779
--------------- ------------- ------------- ---------------
Total Liabilities and Shareholder
Equity $ 381,387,916 $ 206,478,107 $ 261,883,928 $ 849,749,951
--------------- ------------- ------------- ---------------
Ratios
Q3 03 Change Q3 02
------- ----------- -------
NOI/Investment in Real Estate 2.5% -0.4% 2.9%
Total Dividends/Total FFO 87.7% 13.0% 74.7%
Dividends/FFO per share 75.7% -0.2% 75.9%
======= =========== =======
NOTE: Reconciliation to GAAP is on pages 33 to 36.
32
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
BALANCE SHEET-RECONCILIATION TO GAAP
(Wholly Owned vs. JVs)
September 30, 2003
-------------------------------------------------------------------------------
Combined Adjustments to Assets Held
TOTAL (1) Equity Method Subtotal for Sale TOTAL
--------------- -------------- --------------- ------------ ---------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $ 1,289,890,542 $ (146,787,604) $ 1,143,102,938 $ - $ 1,143,102,938
Multifamily Properties - - - - -
Industrial Properties 2,504,211 - 2,504,211 - 2,504,211
Construction In Progress 17,673,853 (1,563,289) 16,110,564 - 16,110,564
--------------- -------------- --------------- ------------ ---------------
TOTAL INVESTMENTS IN REAL ESTATE 1,310,068,606 (148,350,893) 1,161,717,713 - 1,161,717,713
Accumulated Depreciation (97,376,388) 36,454,134 (60,922,254) - (60,922,254)
--------------- -------------- --------------- ------------ ---------------
Net Real Estate 1,212,692,218 (111,896,759) 1,100,795,459 - 1,100,795,459
--------------- -------------- --------------- ------------ ---------------
Investment in and advances to Partnerships
and JVs 1,200,000 14,691,677 15,891,677 - 15,891,677
--------------- -------------- --------------- ------------ ---------------
1,213,892,218 (97,205,082) 1,116,687,136 - 1,116,687,136
--------------- -------------- --------------- ------------ ---------------
Allowance for Possible Losses
--------------- -------------- --------------- ------------ ---------------
1,213,892,218 (97,205,082) 1,116,687,136 - 1,116,687,136
--------------- -------------- --------------- ------------ ---------------
Other Assets:
Cash and Cash Equivalents 43,512,963 (5,113,326) 38,399,637 38,399,637
Rents and Other Receivables 21,909,843 (8,570,389) 13,339,454 - 13,339,454
Assets held for sale - - - - -
Intangible Assets 55,957,597 - 55,957,597 - 55,957,597
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets 53,730,566 (12,102,886) 41,627,680 41,627,680
--------------- -------------- --------------- ------------ ---------------
TOTAL OTHER ASSETS 175,110,969 (25,786,601) 149,324,368 - 149,324,368
--------------- -------------- --------------- ------------ ---------------
TOTAL ASSETS 1,389,003,187 (122,991,683) 1,266,011,504 - 1,266,011,504
=============== ============== =============== ============ ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 739,061,360 (118,525,862) 620,535,498 - 620,535,498
Bank Loans Payable - - - - -
Acquisition Term Loan & Unsecured Line
of Credit - - - - -
Assets held for sale 951,750 (36,458) 915,292 - 915,292
Other Liabilities (2) 42,393,014 (4,429,363) 37,963,651 37,963,651
--------------- -------------- --------------- ------------ ---------------
TOTAL LIABILITIES 782,406,124 (122,991,683) 659,414,441 - 659,414,441
--------------- -------------- --------------- ------------ ---------------
--------------- -------------- --------------- ------------ ---------------
Minority Interest 64,261,590 - 64,261,590 - 64,261,590
--------------- -------------- --------------- ------------ ---------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par 23,480,595 - 23,480,595 - 23,480,595
Capital Contributed in Excess of Par 407,738,529 - 407,738,529 - 407,738,529
Restricted Stock (3,901,106) - (3,901,106) - (3,901,106)
Other Comprehensive Income (1,928,590) - (1,928,590) - (1,928,590)
Retained Earnings (Distributions in Excess
of Net Income) 116,946,045 - 116,946,045 - 116,946,045
--------------- -------------- --------------- ------------ ---------------
TOTAL SHAREHOLDERS' EQUITY 542,335,473 - 542,335,473 - 542,335,473
--------------- -------------- --------------- ------------ ---------------
--------------- -------------- --------------- ------------ ---------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,389,003,187 $ (122,991,683) $ 1,266,011,504 $ - $ 1,266,011,504
=============== ============== =============== ============ ===============
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 16,679,886 - 16,679,886 - 16,679,886
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets 46,111,466 (13,981,793) 32,129,673 - 32,129,673
--------------- -------------- --------------- ------------ ---------------
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 (2) 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)
Retained Earnings (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
=============== ============== =============== ============ ===============
September 30, 2002
-------------------------------------------------------------------------------
Combined Adjustments to Assets Held
TOTAL (1) Equity Method Subtotal for Sale TOTAL
--------------- -------------- --------------- ------------ ---------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $ 614,624,880 $ (197,652,779) $ 416,972,101 $ - $ 416,972,101
Multifamily Properties 287,375,109 (29,314,705) 258,060,404 - 258,060,404
Industrial Properties 2,504,211 - 2,504,211 - 2,504,211
Construction In Progress 21,917,895 (1,549,224) 20,368,671 - 20,368,671
--------------- -------------- --------------- ------------ ---------------
TOTAL INVESTMENTS IN REAL ESTATE 926,422,095 (228,516,708) 697,905,387 - 697,905,387
Accumulated Depreciation (169,488,716) 46,658,613 (122,830,103) - (122,830,103)
--------------- -------------- --------------- ------------ ---------------
Net Real Estate 756,933,379 (181,858,095) 575,075,284 - 575,075,284
--------------- -------------- --------------- ------------ ---------------
Investment in and advances to Partnerships
and JVs 418,851 26,072,820 26,491,671 - 26,491,671
--------------- -------------- --------------- ------------ ---------------
757,352,230 (155,785,275) 601,566,955 - 601,566,955
--------------- -------------- --------------- ------------ ---------------
Allowance for Possible Losses
--------------- -------------- --------------- ------------ ---------------
757,352,230 (155,785,275) 601,566,955 - 601,566,955
--------------- -------------- --------------- ------------ ---------------
Other Assets:
Cash and Cash Equivalents 16,130,074 (5,974,345) 10,155,729 - 10,155,729
Rents and Other Receivables 17,151,758 (8,035,546) 9,116,212 - 9,116,212
Assets held for sale - - - - -
Intangible Assets 16,679,886 - 16,679,886 - 16,679,886
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets 42,436,003 (14,264,374) 28,171,629 - 28,171,629
--------------- -------------- --------------- ------------ ---------------
TOTAL OTHER ASSETS 92,397,721 (28,274,265) 64,123,456 - 64,123,456
--------------- -------------- --------------- ------------ ---------------
TOTAL ASSETS 849,749,951 (184,059,540) 665,690,411 - 665,690,411
=============== ============== =============== ============ ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 478,913,976 (176,919,931) 301,994,045 - 301,994,045
Bank Loans Payable 120,500,000 - 120,500,000 - 120,500,000
Acquisition Term Loan & Unsecured Line
of Credit - - - - -
Assets held for sale - - - - -
Other Liabilities (2) 31,434,318 (7,139,609) 24,294,709 - 24,294,709
--------------- -------------- --------------- ------------ ---------------
TOTAL LIABILITIES 630,848,294 (184,059,540) 446,788,754 - 446,788,754
--------------- -------------- --------------- ------------ ---------------
--------------- -------------- --------------- ------------ ---------------
Minority Interest 31,881,878 - 31,881,878 - 31,881,878
--------------- -------------- --------------- ------------ ---------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par 16,602,759 - 16,602,759 - 16,602,759
Capital Contributed in Excess of Par 214,543,587 - 214,543,587 - 214,543,587
Restricted Stock (3,147,772) - (3,147,772) - (3,147,772)
Other Comprehensive Income (3,486,703) - (3,486,703) - (3,486,703)
Retained Earnings (Distributions in Excess
of Net Income) (37,492,092) - (37,492,092) - (37,492,092)
--------------- -------------- --------------- ------------ ---------------
TOTAL SHAREHOLDERS' EQUITY 187,019,779 - 187,019,779 - 187,019,779
--------------- -------------- --------------- ------------ ---------------
--------------- -------------- --------------- ------------ ---------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 849,749,951 $ (184,059,540) $ 665,690,411 $ - $ 665,690,411
=============== ============== =============== ============ ===============
(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.
(2) For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and
Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses
and Other Liabilities.
(3) PREIT's percent of JVs is "grossed up" to reflect the Trust's share of the
Total Assets and Liabilities of the underlying properties. The consolidated
financial statements, which are presented in accordance with GAAP, reflect
only the Trust's Equity in these properties.
33
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI LISTED NYSE]
INCOME STATEMENT-RECONCILIATION TO GAAP(1)
QUARTERLY COMPARISON
(Wholly Owned vs. JV's)
Q3 03
(3 months ended 9/30/03)
----------------------------------------------------------------------------------------
Combined Adjustments to Assets Held TOTAL %
TOTAL(3) Equity Method Subtotal for Sale Total CHANGE
-------------- -------------- -------------- -------------- -------------- --------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 36,054,898 $ (6,479,632) $ 29,575,266 $ (929,099) $ 28,646,167 143.9%
Straight-Lining of Base Rents 765,238 (80,188) 685,050 685,050 274.5%
Percentage Rents 544,610 (75,212) 469,398 469,398 40.7%
Lease Termination 29,393 - 29,393 (2,264) 27,129 -92.1%
Expense Recoveries & Other Income 16,527,082 (2,321,149) 14,205,933 (61,527) 14,144,406 279.7%
-------------- -------------- -------------- -------------- -------------- --------
TOTAL REVENUES 53,921,221 (8,956,181) 44,965,040 (992,890) 43,972,150 169.2%
-------------- -------------- -------------- -------------- -------------- --------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 15,867,826 (2,480,268) 13,387,558 (449,158) 12,938,400 310.1%
Real Estate Taxes 5,576,415 (807,631) 4,768,784 (42,536) 4,726,248 316.5%
Minority Interest in properties 310,751 - 310,751 310,751
-------------- -------------- -------------- -------------- -------------- --------
TOTAL EXPENSES 21,754,992 (3,287,899) 18,467,093 (491,694) 17,975,399 319.1%
-------------- -------------- -------------- -------------- -------------- --------
NET OPERATING INCOME 32,166,229 (5,668,282) 26,497,947 (501,196) 25,996,751 115.9%
============== ============== ============== ============== ============== ========
OTHER INCOME (EXPENSES)
Management Company Revenue 1,972,607 - 1,972,607 1,972,607 -19.3%
Interest Income $ 217,023 - 217,023 217,023 50.7%
General & Administrative:
Corporate Payroll (3,707,416) - (3,707,416) (3,707,416) 0.3%
Other G&A Expenses (4,615,793) - (4,615,793) (4,615,793) 83.4%
-------------- -------------- -------------- -------------- -------------- --------
Earnings before interest expenses,
taxes, depreciation and amortization 26,032,650 (5,668,282) 20,364,368 (501,196) 19,863,172 135.9%
-------------- -------------- -------------- -------------- -------------- --------
Interest Expense (2) (11,465,586) 2,812,706 (8,652,880) 169,696 (8,483,184) 108.9%
Depreciation & Amortization (10,226,446) 1,034,646 (9,191,800) - (9,191,800) 178.7%
-------------- -------------- -------------- -------------- -------------- --------
TOTAL OTHER INCOME (EXPENSES) (21,692,032) 3,847,352 (17,844,680) 169,696 (17,674,984) 140.2%
-------------- -------------- -------------- -------------- -------------- --------
Equity in Income of partnerships and JVs - 1,820,930 1,820,930 1,820,930
-------------- -------------- -------------- -------------- -------------- --------
Gains (losses) on sales of interests
in Real Estate 6,228,839 - 6,228,839 - 6,228,839 N/A
-------------- -------------- -------------- -------------- -------------- --------
Income before Minority Interest 10,569,457 - 10,569,457 (331,500) 10,237,957 268.5%
-------------- -------------- -------------- -------------- -------------- --------
Minority Interest of O.P. Unitholders (989,253) - (989,253) - (989,253) 297.4%
-------------- -------------- -------------- -------------- -------------- --------
Income from Operations 9,580,204 - 9,580,204 (331,500) 9,248,704 265.6%
-------------- -------------- -------------- -------------- -------------- --------
Discontinued Operations:
Income from Disposed Real Estate - - - 331,500 331,500 -84.9%
Equity in Income of partnerships and JVs -
Minority Interest of O.P. Unitholders (2,382,461) - (2,382,461) (2,382,461) N/A
Gain (losses) on Disposition of
Discontinued Operations 27,725,759 - 27,725,759 27,725,759 N/A
-------------- -------------- -------------- -------------- -------------- --------
TOTAL DISCONTINUED OPERATIONS 25,343,298 - 25,343,298 331,500 25,674,798 N/A
-------------- -------------- -------------- -------------- -------------- --------
Extraordinary item(Loss on early
extinguishment of debt) - - - - - N/A
-------------- -------------- -------------- -------------- -------------- --------
NET INCOME $ 34,923,502 $ - $ 34,923,502 $ - $ 34,923,502 327.1%
============== ============== ============== ============== ============== ========
Q3 02
(3 months ended 9/30/02)
------------------------------------------------------------------------------
Combined Adjustments to Assets Held
TOTAL(3) Equity Method Subtotal for Sale Total
-------------- -------------- -------------- -------------- --------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 31,786,391 $ (8,038,742) $ 23,747,649 $ (12,001,888) $ 11,745,761
Straight-Lining of Base Rents 264,272 (81,350) 182,922 - 182,922
Percentage Rents 407,801 (74,135) 333,666 333,666
Lease Termination 426,234 - 426,234 (81,186) 345,048
Expense Recoveries & Other Income 7,065,623 (2,666,190) 4,399,433 (674,512) 3,724,921
-------------- -------------- -------------- -------------- --------------
TOTAL REVENUES 39,950,321 (10,860,417) 29,089,904 (12,757,586) 16,332,318
-------------- -------------- -------------- -------------- --------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 10,224,986 (2,831,965) 7,393,021 (4,238,321) 3,154,700
Real Estate Taxes 3,246,752 (894,273) 2,352,479 (1,217,816) 1,134,663
Minority Interest in properties
-------------- -------------- -------------- -------------- --------------
TOTAL EXPENSES 13,471,738 (3,726,238) 9,745,500 (5,456,137) 4,289,363
-------------- -------------- -------------- -------------- --------------
NET OPERATING INCOME 26,478,583 (7,134,179) 19,344,404 (7,301,449) 12,042,955
============== ============== ============== ============== ==============
OTHER INCOME (EXPENSES)
Management Company Revenue 2,443,592 - 2,443,592 - 2,443,592
Interest Income 144,042 - 144,042 - 144,042
General & Administrative:
Corporate Payroll (3,695,921) - (3,695,921) - (3,695,921)
Other G&A Expenses (2,516,173) - (2,516,173) - (2,516,173)
-------------- -------------- -------------- -------------- --------------
Earnings before interest expenses,
taxes, depreciation and amortization 22,854,123 (7,134,179) 15,719,944 (7,301,449) 8,418,495
-------------- -------------- -------------- -------------- --------------
Interest Expense (2) (10,600,412) 3,444,302 (7,156,110) 3,095,320 (4,060,790)
Depreciation & Amortization (7,346,599) 1,971,087 (5,375,512) 2,077,467 (3,298,045)
-------------- -------------- -------------- -------------- --------------
TOTAL OTHER INCOME (EXPENSES) (17,947,011) 5,415,389 (12,531,622) 5,172,787 (7,358,835)
-------------- -------------- -------------- -------------- --------------
Equity in Income of partnerships and JVs 1,718,790 1,718,790 1,718,790
-------------- -------------- -------------- -------------- --------------
Gains (losses) on sales of interests
in Real Estate - - - - -
-------------- -------------- -------------- -------------- --------------
Income before Minority Interest 4,907,112 - 4,907,112 (2,128,662) 2,778,450
-------------- -------------- -------------- -------------- --------------
Minority Interest of O.P. Unitholders (248,916) - (248,916) - (248,916)
-------------- -------------- -------------- -------------- --------------
Income from Operations 4,658,196 - 4,658,196 (2,128,662) 2,529,534
-------------- -------------- -------------- -------------- --------------
Discontinued Operations:
Income from Disposed Real Estate 71,772 - 71,772 2,128,662 2,200,434
Equity in Income of partnerships and JVs -
Minority Interest of O.P. Unitholders (637,292) - (637,292) - (637,292)
Gain (losses) on Disposition of
Discontinued Operations 4,085,164 - 4,085,164 - 4,085,164
-------------- -------------- -------------- -------------- --------------
TOTAL DISCONTINUED OPERATIONS 3,519,644 - 3,519,644 2,128,662 5,648,306
-------------- -------------- -------------- -------------- --------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - -
-------------- -------------- -------------- -------------- --------------
NET INCOME $ 8,177,840 $ - $ 8,177,840 $ - $ 8,177,840
============== ============== ============== ============== ==============
(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 $324,187 not included in the quarter ended 9/30/03 and $374,570 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.
34
Pennsylvania REIT
FLASH REPORT-RECONCILIATION TO GAAP (September 30, 2003)
FINANCIAL STATEMENT
LOGO OF PREIT
PEI LISTED NYSE
Q3 03
(3 months ended 9/30/03)
------------------------------------------------------------------------------
Combined Adjustments to Assets Held
TOTAL Equity Method Subtotal for Sale Total
-------------- -------------- -------------- -------------- --------------
Real Estate Revenues:
Same Store $ 18,565,585 (7,441,298) $ 11,124,287 - $ 11,124,287
New 28,460,729 (1,176,197) 27,284,532 - 27,284,532
Redevelopment 5,563,331 - 5,563,331 - 5,563,331
Discontinued 1,331,576 (338,686) 992,890 (992,890) -
-------------- -------------- -------------- -------------- --------------
Total Real Estate Revenues 53,921,221 (8,956,181) 44,965,040 (992,890) 43,972,150
-------------- -------------- -------------- -------------- --------------
Operating Expenses:
Same Store 4,938,861 (2,346,100) 2,592,761 - 2,592,761
New 14,179,161 (721,007) 13,458,154 - 13,458,154
Redevelopment 1,924,484 - 1,924,484 - 1,924,484
Discontinued 712,486 (220,792) 491,694 (491,694) -
-------------- -------------- -------------- -------------- --------------
Total Operating Expenses 21,754,992 (3,287,899) 18,467,093 (491,694) 17,975,399
-------------- -------------- -------------- -------------- --------------
NOI:
Same Store 13,626,724 (5,095,198) 8,531,526 - 8,531,526
New 14,281,568 (455,190) 13,826,378 - 13,826,378
Redevelopment 3,638,847 - 3,638,847 - 3,638,847
Discontinued 619,090 (117,894) 501,196 (501,196) -
-------------- -------------- -------------- -------------- --------------
NOI (2) 32,166,229 (5,668,282) 26,497,947 (501,196) 25,996,751
-------------- -------------- -------------- -------------- --------------
OTHER INCOME (EXPENSES):
Management Company Revenue 1,972,607 - 1,972,607 - 1,972,607
Interest Income 217,023 - 217,023 - 217,023
General & Administrative: - - - -
Corporate Payroll (3,707,416) - (3,707,416) - (3,707,416)
Other G&A Expenses (4,615,793) - (4,615,793) - (4,615,793)
-------------- -------------- -------------- -------------- --------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 26,032,650 (5,668,282) 20,364,368 (501,196) 19,863,172
-------------- -------------- -------------- -------------- --------------
Interest Expense (11,465,586) 2,812,706 (8,652,880) $ 169,696 (8,483,184)
Depreciation and Amortization (10,226,446) 1,034,646 (9,191,800) - (9,191,800)
Equity in income of partnership and JVs - 1,820,930 1,820,930 - 1,820,930
Gain(loss) on Sale of Interests in RE 6,228,839 - 6,228,839 - 6,228,839
DISCONTINUED OPERATIONS: - - - - -
Income from Disposed Real Estate - - - 331,500 331,500
Equity in income of partnership and JVs - - - - -
Minority Interest of O.P. Unitholders (2,382,461) - (2,382,461) - (2,382,461)
Gain (losses) on Disposition of
Discontinued Operations 27,725,759 - 27,725,759 27,725,759
-------------- -------------- -------------- -------------- --------------
TOTAL DISCONTINUED OPERATIONS 25,343,298 - 25,343,298 331,500 25,674,798
-------------- -------------- -------------- -------------- --------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - -
Minority Interest of OP Unit Holders (989,253) - (989,253) - (989,253)
-------------- -------------- -------------- -------------- --------------
NET INCOME 34,923,502 - 34,923,502 - 34,923,502
-------------- -------------- -------------- -------------- --------------
Gain on Sale of Real Estate (33,954,598) - (33,954,598) - (33,954,598)
Depreciation and Amor. of Real Estate 10,226,446 - 10,226,446 - 10,226,446
FFO Adjustments 3,306,714 - 3,306,714 - 3,306,714
-------------- -------------- -------------- -------------- --------------
FFO 14,502,064 - 14,502,064 - 14,502,064
-------------- -------------- -------------- -------------- --------------
Adj. Straight Lining of Base Rents (765,238) - (765,238) - (765,238)
Recurring Capital Expenditures (231,073) - (231,073) - (231,073)
Amortization of Debt Premium (1,742,283) - (1,742,283) - (1,742,283)
-------------- -------------- -------------- -------------- --------------
FAD $ 11,763,470 $ - $ 11,763,470 $ 0 $ 11,763,470
-------------- -------------- -------------- -------------- --------------
Dividends $ 12,718,682
Share Price (at close) $ 33.45
Weighted Average Number of Shares 19,488,367
WA number of Shares and OP Units 21,537,479
--------------
Net Income/Share $ 1.79
FFO/Share and OP Units $ 0.67
FAD/Share and OP Units $ 0.55
Dividend/Share and OP Units $ 0.51
==============
Q3 02
(3 months ended 9/30/02)
------------------------------------------------------------------------------
Combined Adjustments to Assets Held
TOTAL Equity Method Subtotal for Sale Total
-------------- -------------- -------------- -------------- --------------
Real Estate Revenues:
Same Store $ 18,469,668 (7,427,508) $ 11,042,160 - $ 11,042,160
New 1,772,287 (1,772,287) - - -
Redevelopment 5,290,158 - 5,290,158 - 5,290,158
Discontinued 14,418,208 (1,660,622) 12,757,586 (12,757,586) -
-------------- -------------- -------------- -------------- --------------
Total Real Estate Revenues 39,950,321 (10,860,417) 29,089,904 (12,757,586) 16,332,318
-------------- -------------- -------------- -------------- --------------
Operating Expenses:
Same Store 4,542,341 (2,195,040) 2,347,301 - 2,347,301
New 728,331 (728,331) - - -
Redevelopment 1,942,062 - 1,942,062 - 1,942,062
Discontinued 6,259,004 (802,867) 5,456,137 (5,456,137) -
-------------- -------------- -------------- -------------- --------------
Total Operating Expenses 13,471,738 (3,726,238) 9,745,500 (5,456,137) 4,289,363
-------------- -------------- -------------- -------------- --------------
NOI:
Same Store 13,927,327 (5,232,468) 8,694,859 - 8,694,859
New 1,043,956 (1,043,956) - - -
Redevelopment 3,348,096 - 3,348,096 - 3,348,096
Discontinued 8,159,204 (857,755) 7,301,449 (7,301,449) -
-------------- -------------- -------------- -------------- --------------
NOI (2) 26,478,583 (7,134,179) 19,344,404 (7,301,449) 12,042,955
-------------- -------------- -------------- -------------- --------------
OTHER INCOME (EXPENSES):
Management Company Revenue 2,443,592 - 2,443,592 - 2,443,592
Interest Income 144,042 - 144,042 - 144,042
General & Administrative: - - - -
Corporate Payroll (3,695,921) - (3,695,921) - (3,695,921)
Other G&A Expenses (2,516,173) - (2,516,173) - (2,516,173)
-------------- -------------- -------------- -------------- --------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 22,854,123 (7,134,179) 15,719,944 (7,301,449) 8,418,495
-------------- -------------- -------------- -------------- --------------
Interest Expense (10,600,412) 3,444,302 (7,156,110) $ 3,095,320 (4,060,790)
Depreciation and Amortization (7,346,599) 1,971,087 (5,375,512) $ 2,077,467 (3,298,045)
Equity in income of partnership and JVs 1,718,790 1,718,790 - 1,718,790
Gain(loss) on Sale of Interests in RE 4,085,164 - 4,085,164 - 4,085,164
DISCONTINUED OPERATIONS: - - - -
Income from Disposed Real Estate 71,772 - 71,772 2,128,662 2,200,434
Equity in income of partnership and JVs - - -
Minority Interest of O.P. Unitholders (637,292) - (637,292) - (637,292)
Gain (losses) on Disposition of
Discontinued Operations - - - -
-------------- -------------- -------------- -------------- --------------
TOTAL DISCONTINUED OPERATIONS (565,520) - (565,520) 2,128,662 1,563,142
-------------- -------------- -------------- -------------- --------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - -
Minority Interest of OP Unit Holders (248,916) - (248,916) - (248,916)
-------------- -------------- -------------- -------------- --------------
NET INCOME 8,177,840 - 8,177,840 - 8,177,840
-------------- -------------- -------------- -------------- --------------
Gain on Sale of Real Estate (4,085,164) - (4,085,164) - (4,085,164)
Depreciation and Amor. of Real Estate 7,346,599 - 7,346,599 - 7,346,599
FFO Adjustments 857,692 - 857,692 - 857,692
-------------- -------------- -------------- -------------- --------------
FFO 12,296,967 - 12,296,967 - 12,296,967
-------------- -------------- -------------- -------------- --------------
Adj. Straight Lining of Base Rents (264,272) - (264,272) - (264,272)
Recurring Capital Expenditures (729,390) - (729,390) - (729,390)
Amortization of Debt Premium - - - - -
-------------- -------------- -------------- -------------- --------------
FAD $ 11,303,305 $ - $ 11,303,305 $ - $ 11,303,305
-------------- -------------- -------------- -------------- --------------
Dividends $ 9,182,493
Share Price (at close) $ 25.76
Weighted Average Number of Shares 16,566,418
WA number of Shares and OP Units 18,305,378
--------------
Net Income/Share $ 0.49
FFO/Share and OP Units $ 0.67
FAD/Share and OP Units $ 0.62
Dividend/Share and OP Units $ 0.51
==============
BALANCE SHEET
Combined Adjustments to Assets Held
Total Equity Method Subtotal for Sale TOTAL
--------------- --------------- --------------- ----------- --------------
Investment in Real Estate, at cost $ 1,310,068,606 $ (148,350,893) $ 1,161,717,713 $ - $ 1,161,717,713
Accumulated Depreciation (97,376,388) 36,454,134 (60,922,254) - (60,922,254)
Investment in and advances to
Partnership and JVs 1,200,000 14,691,677 15,891,677 - 15,891,677
Other Assets 175,110,969 (25,786,601) $ 149,324,368 - 149,324,368
--------------- --------------- --------------- ----------- ---------------
Total Assets $ 1,389,003,187 $ (122,991,683) $ 1,266,011,504 $ - $ 1,266,011,504
--------------- --------------- --------------- ----------- ---------------
Mortgage Notes $ 739,061,360 $ (118,525,862) $ 620,535,498 $ - $ 620,535,498
Line of Credit - - - - -
Acquisition Term Loan & Unsecured Line
of Credit - - - - -
Other Liabilities 43,344,764 (4,465,821) 38,878,943 - 38,878,943
--------------- --------------- --------------- ----------- ---------------
Total Liabilities $ 782,406,124 $ (122,991,683) $ 659,414,441 $ - $ 659,414,441
--------------- --------------- --------------- ----------- ---------------
Minority Interest $ 64,261,590 $ -- $ 64,261,590 $ - $ 64,261,590
Total Shareholders Equity 542,335,473 -- 542,335,473 - 542,335,473
--------------- --------------- --------------- ----------- ---------------
Total Liabilities and Shareholder Equity $ 1,389,003,187 $ (122,991,683) $ 1,266,011,504 $ - $ 1,266,011,504
=============== =============== =============== =========== ===============
Combined Adjustments to Assets Held
Total Equity Method Subtotal for Sale TOTAL
--------------- --------------- --------------- ----------- --------------
Investment in Real Estate, at cost $ 926,422,095 $ (228,516,708) $ 697,905,387 $ - $ 697,905,387
Accumulated Depreciation (169,488,716) 46,658,613 (122,830,103) - (122,830,103)
Investment in and advances to
Partnership and JVs 418,851 26,072,820 26,491,671 - 26,491,671
Other Assets 92,397,721 (28,274,265) $ 64,123,456 - 64,123,456
--------------- --------------- --------------- ----------- ---------------
Total Assets $ 849,749,951 $ (184,059,540) $ 665,690,411 $ - $ 665,690,411
--------------- --------------- --------------- ----------- ---------------
Mortgage Notes $ 478,913,976 $ (176,919,931) $ 301,994,045 $ - $ 301,994,045
Line of Credit 120,500,000 - 120,500,000 - 120,500,000
Acquisition Term Loan & Unsecured Line
of Credit - - - - -
Other Liabilities 31,434,318 (7,139,609) 24,294,709 - 24,294,709
--------------- --------------- --------------- ----------- ---------------
Total Liabilities $ 630,848,294 $ (184,059,540) $ 446,788,754 $ - $ 446,788,754
--------------- --------------- --------------- ----------- ---------------
Minority Interest $ 31,881,878 $ - $ 31,881,878 $ - $ 31,881,878
Total Shareholders Equity 187,019,779 - 187,019,779 - 187,019,779
--------------- --------------- --------------- ----------- ---------------
Total Liabilities and Shareholder Equity $ 849,749,951 $ (184,059,540) $ 665,690,411 $ - $ 665,690,411
=============== =============== =============== =========== ===============
35
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (September 30, 2003)
[LOGO OF PREIT]
[LOGO OF PEI 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.
36