Exhibit 99.1
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Pennsylvania Real Estate Investment Trust
QUARTERLY SUPPLEMENTAL DISCLOSURE
(December 31, 2003)
www.preit.com
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Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
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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 -Quarterly
Comparison 7
Income Statement-Wholly Owned and JV Detail-Yearly Comparison 8
Income Statement-Line of Business - Quarterly Comparison 9
Income Statement-Line of Business - Yearly Comparison 10
Income Statement-Retail (Property Status) - Quarterly
Comparison 11
Income Statement-Retail (Property Status) - Yearly Comparison 12
Income Statement-Retail (Property Subtype) - Quarterly
Comparison 13
Income Statement-Retail (Property Subtype) - Yearly Comparison 14
FFO and FAD 15
Key Ratios 16
Property Debt Schedule-Wholly Owned 17
Property Debt Schedule-JV 18
Debt Analysis 19
Debt Ratios 20
Portfolio Summary-Retail 21
Property Acquisitions/Dispositions - Quarterly Summary 22
Property Acquisitions/Dispositions - Yearly Summary 23
Property Development/Redevelopment Summary 24
Top Twenty Tenants Schedule 25
Lease Expiration Schedule - Anchor Tenants 26
Lease Expiration Schedule - Non-Anchor Tenants 27
New Lease/Renewal Summary and Analysis 28
Capital Expenditures 29
Enclosed Mall - Summary and Occupancy 30
Enclosed Mall - Rent Summary 31
Power Center - Summary and Occupancy 32
Strip Center - Summary and Occupancy 33
Retail Overall - Summary and Occupancy 34
Summary of Portfolio Services 35
Flash Report - Quarterly 36
Flash Report - Yearly 37
RECONCILIATION TO GAAP:
Balance Sheet-Reconciliation to GAAP 38
Income Statement-Reconciliation to GAAP - Quarterly 39
Income Statement-Reconciliation to GAAP - Yearly 40
Flash Report-Reconciliation to GAAP - Quarterly 41
Flash Report-Reconciliation to GAAP - Yearly 42
Definition page 43
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 (December 31, 2003)
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COMPANY INFORMATION
PENNSYLVANIA REIT
200 South Broad Street, Philadelphia, PA 19102
http://www.preit.com
Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first
equity REITs in the U.S., has a primary investment focus on retail shopping
malls and power centers (approximately 33.4 million square feet) located in the
Mid-Atlantic Region. PREIT's portfolio consists of 58 properties in 14 states.
PREIT's portfolio includes 40 shopping malls, 14 strip and power centers and
four industrial properties. PREIT is headquartered in Philadelphia,
Pennsylvania.
Research Coverage
Company Analyst Phone Number
- ------0 ------------------- --------------
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 2004 2003
- ------- ---- ----
First Quarter 5/5/2004 (1) 5/14/2003
Second Quarter 8/5/2004 (1) 8/11/2003
Third Quarter 11/4/2004 (1) 11/5/2003
Fourth Quarter 2/24/2005 (1) 2/25/2004
(1) Tentative dates.
Quarterly conference calls are arranged by KCSA Worldwide. To
participate, please contact Evan Smith at (212) 896-1251.
For additional information, please contact:
Edward Glickman or Nurit Yaron
200 South Broad Street
Philadelphia, PA 19102
(215) 875-0700 Phone (866) 875-0700 Toll Free
(215) 546-7311 Fax yaronn@preit.com Email
PAGE 1
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
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Time Line/Recent Developments
February 20, 2004 - Pennsylvania Real Estate Investment Trust announced that its
Board of Trustees has declared a quarterly cash dividend of $0.54 per common
share. PREIT also announced that its Board of Trustees has declared a regular
quarterly dividend of $1.375 per share on its recently issued 11.00% senior
preferred shares.
February 18, 2004 - Pennsylvania Real Estate Investment Trust announced that it
intends to release its financial results for the fourth quarter ended December
31, 2003 on Wednesday, February 25, 2004.
February 9, 2004 - Pennsylvania Real Estate Investment Trust announced that the
IRS has granted the relief requested by PREIT in order to make a retroactive
"taxable REIT subsidiary", or TRS, election necessary to maintain its REIT
status.
February 6, 2004 - Pennsylvania Real Estate Investment Trust announced, after
consultation with Lehman Brothers and Morgan Stanley, that it has chosen to
withdraw its previously-announced offering of 4.35 million common shares under
its shelf-registration statement at a public offering price of $37.08 per share.
On February 5th, the Company determined that it inadvertently did not elect to
treat as a "taxable REIT subsidiary" or TRS, a corporation in which it owns more
than 10% of the stock.
February 5, 2004 - Pennsylvania Real Estate Investment Trust reports tax status
of the dividend distribution for 2003.
February 4, 2004 - Pennsylvania Real Estate Investment Trust announced that it
has agreed to sell 4.35 million common shares under its shelf registration
statement at a public offering price of $37.08 per share, the closing price of
the common shares on the New York Stock Exchange on February 3, 2004.
February 2, 2004 - Pennsylvania Real Estate Investment Trust announced that it
intends to begin marketing the offering of 3.0 million common shares under its
shelf registration statement previously declared effective by the Securities and
Exchange Commission. The net proceeds of the offering are intended to pay down
the Company's revolving credit facility and for general corporate purposes,
including working capital, capital expenditures, and future acquisitions of
properties, if any.
February 2, 2004 - Pennsylvania Real Estate Investment Trust reaffirmed its
Funds From Operations (FFO) guidance for calendar year 2003 to be $2.84 to $2.96
per share
January 21, 2004 - Pennsylvania Real Estate Investment Trust to Create Office of
the Chairman. PREIT will create a new five-person Office of the Chairman and
make several executive changes upon filing of the Company's financial statements
for 2003, scheduled on or before March 15, 2004, and the appointment of a new
Chief Financial Officer.
December 12, 2003 - Pennsylvania Real Estate Investment Trust announced that the
SEC has declared Effective PREIT's $500 million universal shelf registration.
The registration was filed on November 14, 2003.
November 20, 2003 - Pennsylvania Real Estate Investment Trust announced that it
has closed its merger with Crown American Realty Trust, which was originally
announced on May 14, 2003. Both companies received shareholder approval for the
transaction on November 11, 2003.
November 11, 2003 - Pennsylvania Real Estate Investment Trust announced
shareholder approval for its merger with Crown American Realty Trust, which was
first announced publicly on May 14, 2003.
November 7, 2003 - Pennsylvania Real Estate Investment Trust has signed a ground
lease with Target for a new, 136,010-sq.-ft. store at Prince Georges Plaza, a
single-level enclosed regional mall in Hyattsville, Md., just outside of
Washington, DC in suburban Prince Georges County.
November 5, 2003 - Pennsylvania Real Estate Investment Trust announced the
results for the third quarter and nine months ended September 30, 2003.
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.
NOTE: A copy of the press releases are available on the Company's website at
www.preit.com.
PAGE 2
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
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Stock Information
PREIT's common stock trades on the New York Stock Exchange (symbol: PEI).
CY:12/31/03 Q4:12/31/03 Q3:9/30/03 Q2:6/30/03 Q1:3/31/03 CY 12/31/02
--------------- --------------- --------------- --------------- --------------- ---------------
High Price 36.30 36.30 33.45 30.34 28.80 27.20
Low Price 24.70 32.70 29.80 27.94 24.70 20.55
Close 36.30 36.30 33.45 29.95 28.65 26.00
Average Daily
Trading Volume 109,892 283,565 96,738 85,567 37,385 41,495
Common Shares
Outstanding at
end of period 35,544,265 35,544,265 23,480,595 16,837,304 16,753,614 16,697,119
O.P. Units 3,691,516 3,691,516 2,056,861 2,057,618 1,763,320 1,763,318
--------------- --------------- --------------- --------------- --------------- ---------------
Fully Diluted
Shares
Outstanding 39,235,781 39,235,781 25,537,456 18,894,922 18,516,934 18,460,437
Weighted Avg.
number of
common shares
outstanding 20,389,577 28,786,801 19,488,367 16,615,576 16,544,737 16,162,327
Weighted Avg.
effect of full
conversion of
O.P. units 2,303,449 2,957,595 2,049,112 1,998,708 1,763,320 1,804,779
--------------- --------------- --------------- --------------- --------------- ---------------
Wtd Avg. Common
Shares
Outstanding
and O.P. Units 22,693,026 31,744,396 21,537,479 18,614,284 18,308,057 17,967,106
Preferred
Shares,
Nominal Value $ 123,750,000 $ 123,750,000
Market Value of
Shares (based
on closing
price) $1,548,008,850 $1,548,008,850 $ 854,227,903 $ 565,902,914 $ 530,510,159 $ 479,971,362
--------------- --------------- --------------- --------------- --------------- ---------------
Q4:12/31/02 CY 12/31/01
--------------- ---------------
High Price 26.45 25.05
Low Price 22.52 18.25
Close 26.00 23.20
Average Daily Trading Volume 32,614 39,463
Common Shares Outstanding at end of period 16,697,119 15,876,084
O.P. Units 1,763,318 1,753,580
--------------- ---------------
Fully Diluted Shares Outstanding 18,460,437 17,629,664
Weighted Avg. number of common shares outstanding 16,450,912 14,656,711
Weighted Avg. effect of full conversion of O.P. units 1,758,630 1,869,383
--------------- ---------------
Wtd Avg. Common Shares Outstanding and O.P. Units 18,209,542 16,526,094
Preferred Shares, Nominal Value
Market Value of Shares (based on closing price) $ 479,971,362 $ 409,008,205
--------------- ---------------
Distribution Information
CY: 12/31/03 Q4:12/31/03 Q3:9/30/03 Q2:6/30/03 Q1:3/31/03 CY 12/31/02
--------------- --------------- --------------- --------------- --------------- ---------------
Dividend per
share $ 2.070 $ 0.540 $ 0.510 $ 0.510 $ 0.510 $ 2.040
Annualized
Dividend Yield
(1) 5.7% 6.0% 6.1% 6.8% 7.1% 7.8%
Capital Gain
Pre-May 6 0.096 0 0 0.096 $ 0.082
Capital Gain
Post-May 5 0.213 0 0.055 0.158 0
Section 1250
Gain 0.480 0 0.181 0.235 0.064 $ -
Return of
Capital/Non-
Taxable 0.085 0.022 0.021 0.021 0.021 $ 0.134
Qualified 5
Year Gain
(incl. in cap.
Gain) N/A N/A N/A N/A N/A $ -
Ordinary Income $ 1.196 $ 0.518 $ 0.253 $ - $ 0.425 $ 1.824
Q4:12/31/02 CY 12/31/01
--------------- ---------------
Dividend per share $ 0.510 $ 2.040
Annualized Dividend Yield (1) 7.8% 8.8%
Capital Gain Pre-May 6 $ 0.082 $ 0.110
Capital Gain Post-May 5
Section 1250 Gain $ - $ 0.129
Return of Capital/Non-Taxable $ - $ -
Qualified 5 Year Gain (incl. in cap. Gain) $ - $ -
Ordinary Income $ 0.428 $ 1.801
(1) Based on closing stock price for the period.
Shareholder Information
Ten Largest Institutional Shareholders: Shares Held (1) 12/31/2003
RREEF Real Estate Securities Advisers, L.P. 3,764,082
ING Clarion Real Estate Securities 1,663,258
Vanguard Group, Inc. 1,229,907
Barclays Global Investors 1,115,380
K.G. Redding & Associates 952,600
Deutsche Asset Mangement Americas 881,980
Urdang Investment Management, Inc. 841,800
State Street Global Advisors 722,180
Manufacturers Advisers Corporation 699,742
Neuberger Berman, LLC 620,600
TOTAL of Ten Largest Institutional: 12,491,529
TOTAL of all Institutional holders: 19,722,067
---------------
Ten Largest as % of Total Institutional: 63.3%
===============
(1) Based on 13F filings as of 12/31/03 or most recent filings.
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Breakdown of Share &
Unit Ownership:
Shares Held % of 12/31/03
12/31/2003 12/31/2002 total
Institutional(1) 19,722,067 4,549,573 50.3%
Retail(2) 15,293,605 12,171,843 39.0%
Insiders(3) 4,220,109 1,739,021 10.8%
--------------- --------------- ---------------
TOTAL 39,235,781 18,460,437 100.0%
=============== =============== ===============
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(1) Based on 13F filings as of 12/31/03 or most recent filings.
(2) Retail ownership equals total shares outstanding minus institutional and
insider ownership.
(3) Insider holdings as of 12/31/03. (Shares and O.P. Units only. Excludes
475,310 exercisable options).
Share Ownership by Insiders: Shares
Held (including O.P. Units, Interim Net
Beneficial Ownership and As of 12/31/ Purchases of As of 9/25/
Exercisable Options) 03(1) % of Total (2) Shares (3) 03(4) % of Total (5)
--------------- --------------- --------------- --------------- ---------------
Mark Pasquerilla 2,397,073 6.1% N/A N/A
Ronald Rubin 838,848 2.1% 7,586 831,262 3.3%
George F. Rubin 420,535 1.1% 6,526 414,009 1.6%
Leonard I. Korman 312,785 0.8% - 312,785 1.2%
Edward A. Glickman 213,230 0.5% 12,794 200,436 0.8%
Jonathan B. Weller 152,530 0.4% (26,662) 179,192 0.7%
Joseph F. Coradino 111,657 0.3% (21,547) 133,204 0.5%
Jeffrey P. Orleans 82,748 0.2% - 82,748 0.3%
Jeffrey A. Linn 69,356 0.2% (4,988) 74,344 0.3%
Douglas S. Grayson 42,152 0.1% (13,000) 55,152 0.2%
David J. Bryant 21,252 0.1% (2,387) 23,639 0.1%
Lee H. Javitch 12,125 0.0% (1,000) 13,125 0.1%
Bruce Goldman 10,753 0.0% 142 10,611 0.0%
Rosemarie B. Greco 7,125 0.0% - 7,125 0.0%
Ira Lubert 3,250 0.0% - 3,250 0.0%
--------------- --------------- --------------- --------------- ---------------
TOTAL 4,695,419 12.0% (42,536) 2,340,882 9.2%
=============== =============== =============== =============== ===============
(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 December 31, 2003.
(3) Includes purchases of shares, issuance of restricted stocks awards,
issuances of O.P. units, and exercisable options.
(4) Source of Insider Ownership: S-4 SEC filing dated October 1, 2003.
(5) Based on fully diluted shares outstanding as of September 30, 2003.
PAGE 3
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
MARKET CAPITALIZATION
December 31, September 30, December 31,
2003 2003 June 30, 2003 March 31, 2003 2002
-------------- -------------- -------------- -------------- --------------
EQUITY CAPITALIZATION
Shares Outstanding 35,544,265 23,480,595 16,837,304 16,753,614 16,697,119
O.P. Units Outstanding 3,691,516 2,056,861 2,057,618 1,763,320 1,763,318
-------------- -------------- -------------- -------------- --------------
TOTAL Shares and O.P. Units 39,235,781 25,537,456 18,894,922 18,516,934 18,460,437
Market Price (at end of period) $ 36.30 $ 33.45 $ 29.95 $ 28.65 $ 26.00
Preferred Shares, Nominal Value $ 123,750,000
Equity Market Capitalization $ 1,548,008,850 $ 854,227,903 $ 565,902,914 $ 530,510,159 $ 479,971,362
DEBT CAPITALIZATION
Unsecured Debt Balance $ 170,000,000 $ 20,249,935 $ -- $ --
Secured Debt Balance 1,396,262,538 739,061,360 816,864,718 625,117,601 617,279,770
-------------- -------------- -------------- -------------- --------------
Debt Capitalization $ 1,566,262,538 $ 739,061,360 $ 837,114,653 $ 625,117,601 $ 617,279,770
-------------- -------------- -------------- -------------- --------------
TOTAL MARKET CAPITALIZATION $ 3,114,271,388 $ 1,593,289,263 $1,403,017,567 $ 1,155,627,760 $ 1,097,251,132
============== ============== ============== ============== ==============
Preferred Shares/Total Market
Capitalization 4.0%
Shares and O.P. Units/Total
Market capitalization 45.7%
Debt Capitalization/Total Market
Capitalization 50.3% 46.4% 59.7% 54.1% 56.3%
Equity Capitalization/Total
Market Capitalization 49.7% 53.6% 40.3% 45.9% 43.7%
Unsecured Debt Balance/Total Debt 10.9% 0.0% 2.4% 0.0% 0.0%
December 31,
2001
--------------
EQUITY CAPITALIZATION
Shares Outstanding 15,876,084
O.P. Units Outstanding 1,753,580
--------------
TOTAL Shares and O.P. Units 17,629,664
Market Price (at end of period) $ 23.20
Preferred Shares, Nominal Value
Equity Market Capitalization $ 409,008,205
DEBT CAPITALIZATION
Unsecured Debt Balance $ --
Secured Debt Balance 506,175,818
--------------
Debt Capitalization $ 506,175,818
--------------
TOTAL MARKET CAPITALIZATION $ 915,184,023
==============
Preferred Shares/Total Market
Capitalization
Shares and O.P. Units/Total
Market capitalization
Debt Capitalization/Total Market
Capitalization 55.3%
Equity Capitalization/Total
Market Capitalization 44.7%
Unsecured Debt Balance/Total Debt 0.0%
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CAPITAL RESOURCES
December 31, September 30, December 31,
2003 2003 June 30, 2003 March 31, 2003 2002
-------------- -------------- -------------- -------------- --------------
Cash on Hand $ 52,534,598 $ 43,512,963 $ 15,035,033 $ 14,015,658 $ 18,628,137
Line of Credit Capacity (1) $ 500,000,000 $ 200,000,000 $ 200,000,000 $ 200,000,000 $ 200,000,000
Amount Used (includes letters
of credit) (170,500,000) (673,671) (118,573,671) (147,573,671) (131,473,671)
-------------- -------------- -------------- -------------- --------------
Available LOC (2) $ 329,500,000 $ 199,326,329 $ 81,426,329 $ 52,426,329 $ 68,526,329
Shelf Registration $ 1,000,000,000 $ 500,000,000 $ 500,000,000 $ 500,000,000 $ 500,000,000
Amount Used (344,146,042) (344,146,042) (155,977,292) (155,977,292) (155,977,292)
-------------- -------------- -------------- -------------- --------------
Available Shelf $ 655,853,958 $ 155,853,958 $ 344,022,708 $ 344,022,708 $ 344,022,708
-------------- -------------- -------------- -------------- --------------
TOTAL CAPITAL RESOURCES $ 1,037,888,556 $ 398,693,250 $ 440,484,070 $ 410,464,695 $ 431,177,174
============== ============== ============== ============== ==============
December 31,
2001
--------------
Cash on Hand $ 16,242,450
Line of Credit Capacity (1) $ 175,000,000
Amount Used (includes letters
of credit) (100,168,659)
--------------
Available LOC (2) $ 74,831,341
Shelf Registration $ 200,000,000
Amount Used (148,925,000)
--------------
Available Shelf $ 51,075,000
--------------
TOTAL CAPITAL RESOURCES $ 142,148,791
==============
(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.
PAGE 4
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
BALANCE SHEET
(Wholly Owned vs. JVs)
December 31, 2003
-----------------------------------------------------------------------------------
PREIT PREIT's % Corporate Combined
Wholly Owned of JVs (5) TOTAL
------------------ ------------------ ------------------ ------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $ 2,382,753,911 $ 133,107,107 - $ 2,515,861,018
Multifamily Properties - - - -
Industrial Properties 2,504,211 - - 2,504,211
Construction In Progress 20,230,813 1,506,178 - 21,736,991
------------------ ------------------ ------------------ ------------------
TOTAL INVESTMENTS IN REAL ESTATE 2,405,488,935 134,613,285 - 2,540,102,220
Accumulated Depreciation (78,416,266) (31,652,085) - (110,068,351)
------------------ ------------------ ------------------ ------------------
Net Real Estate 2,327,072,669 102,961,200 - 2,430,033,869
------------------ ------------------ ------------------ ------------------
Advances to Partnerships and Joint
Ventures - - -
------------------ ------------------ ------------------ ------------------
2,327,072,669 102,961,200 - 2,430,033,869
------------------ ------------------ ------------------ ------------------
Allowance for Possible Losses -
------------------ ------------------ ------------------ ------------------
2,327,072,669 102,961,200 - 2,430,033,869
------------------ ------------------ ------------------ ------------------
Other Assets:
Cash and Cash Equivalents 13,580,334 3,905,956 35,048,308 52,534,598
Rents and Other Receivables 22,860,444 7,991,132 4,814,392 35,665,968
Assets held for sale 37,686,662 - 37,686,662
Acquired Lease Assets -
Intangible Assets(1) 172,502,487 9,041,888 181,544,375
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets(2) 41,095,944 11,942,821 8,668,393 61,707,158
------------------ ------------------ ------------------ ------------------
TOTAL OTHER ASSETS 287,725,871 23,839,909 57,572,981 369,138,761
------------------ ------------------ ------------------ ------------------
TOTAL ASSETS 2,614,798,540 126,801,109 57,572,981 2,799,172,630
------------------ ------------------ ------------------ ------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 1,211,192,636 109,581,659 - 1,320,774,295
Mortgage Debt Premium(3) 75,488,243 - 75,488,243
Bank Loans Payable - - 170,000,000 170,000,000
Acquisition Term Loan & Unsecured Line
of Credit - - - -
Construction Loans
Liabilities Related to Assets held for
sale 5,840,385 - 5,840,385
Other Liabilities(4) 46,107,438 4,110,496 40,566,634 90,784,568
------------------ ------------------ ------------------ ------------------
TOTAL LIABILITIES 1,338,628,702 113,692,155 210,566,634 1,662,887,491
------------------ ------------------ ------------------ ------------------
Minority Interest 8,590,978 - 104,060,548 112,651,526
------------------ ------------------ ------------------ ------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - 35,544,280 35,544,280
Preferred Shares $0.01 Par 24,750 24,750
Capital Contributed in Excess of Par - - 877,444,615 877,444,615
Restricted Stock - - (3,195,777) (3,195,777)
Other Comprehensive Income - - (2,005,840) (2,005,840)
Retained Earnings (Distributions in
Excess of Net Income) - - 115,821,585 115,821,585
------------------ ------------------ ------------------ ------------------
TOTAL SHAREHOLDERS' EQUITY - - 1,023,633,613 1,023,633,613
------------------ ------------------ ------------------ ------------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 1,347,219,680 $ 113,692,155 $ 1,338,260,795 $ 2,799,172,630
================== ================== ================== ==================
September 30, 2003
-----------------------------------------------------------------------------------
PREIT PREIT's % Corporate Combined
Wholly Owned of JVs (5) 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
Assets held for sale - -
Acquired Lease Assets
Intangible Assets(1) 46,915,709 9,041,888 55,957,597
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets(2) 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
Mortgage Debt Premium(3)
Bank Loans Payable - -
Acquisition Term Loan & Unsecured Line
of Credit - - - -
Construction Loans
Liabilities Related to Assets held for
sale 915,292 36,458 - 951,750
Other Liabilities(4) 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
Preferred Shares $0.01 Par
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 (5) TOTAL
------------------ ------------------ ------------------ ------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $ 423,046,545 $ 197,299,357 - $ 620,345,902
Multifamily Properties 290,606,714 14,728,865 - 305,335,579
Industrial Properties 2,504,211 - - 2,504,211
Construction In Progress 23,271,863 1,554,110 - 24,825,973
------------------ ------------------ ------------------ ------------------
TOTAL INVESTMENTS IN REAL ESTATE 739,429,333 213,582,332 - 953,011,665
Accumulated Depreciation (136,733,257) (43,759,779) - (180,493,036)
------------------ ------------------ ------------------ ------------------
Net Real Estate 602,696,076 169,822,553 - 772,518,629
------------------ ------------------ ------------------ ------------------
Advances to Partnerships and Joint
Ventures - - 105,309 105,309
------------------ ------------------ ------------------ ------------------
602,696,076 169,822,553 105,309 772,623,938
------------------ ------------------ ------------------ ------------------
Allowance for Possible Losses - - -
------------------ ------------------ ------------------ ------------------
602,696,076 169,822,553 105,309 772,623,938
------------------ ------------------ ------------------ ------------------
Other Assets:
Cash and Cash Equivalents 7,342,523 5,075,355 6,210,259 18,628,137
Rents and Other Receivables 8,847,093 10,122,016 4,395,970 23,365,079
Assets held for sale - - - -
Acquired Lease Assets
Intangible Assets(1) 16,679,886 16,679,886
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets(2) 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
------------------ ------------------ ------------------ ------------------
48,809,559
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 319,751,324 166,728,446 - 486,479,770
Mortgage Debt Premium(3)
Bank Loans Payable 119,229,707 11,570,293 130,800,000
Acquisition Term Loan & Unsecured Line
of Credit - - - -
Construction Loans -
Liabilities Related to Assets held for
sale - - - -
Other Liabilities(4) 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
Preferred Shares $0.01 Par
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
================== ================== ================== ==================
(1) Includes value of acquired in-place leases and above-market value of leases
recorded in connection with the acquisition of properties in 2002 and 2003.
Purchase accounting rules require a purchaser to separately value the leases
that are in place at the acquisition date, as well as the above- or
below-market values of the leases.
(2) Deferred Costs, Prepaid Taxes and Expenses and Other Assets include Rents
and Other Receivables for Partnerships and Joint Ventures.
(3) Represents premium that is recorded in connection with debt assumed in
connection with property purchases. The debt is market to market at the
acquisition date and the premium is amortized through interest expense over
the remaining term of the debt.
(4) For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and
Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses
and Other Liabilities.
(5) 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 38 to 43.
PAGE 5
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
BALANCE SHEET(1)
(Line of Business)
December 31, 2003
----------------------------------------------------------------------------------------
Power and Other
Malls Strip Centers Total Retail Multifamily Properties
-------------- -------------- -------------- -------------- --------------
ASSETS
Investments in Real Estate, at
cost $ 2,217,101,551 $ 298,759,467 $2,515,861,018 $ - $ 24,241,202
-------------- -------------- -------------- -------------- --------------
Accumulated Depreciation (68,469,015) (39,522,565) (107,991,580) - (2,076,771)
-------------- -------------- -------------- -------------- --------------
Net Real Estate 2,148,632,536 259,236,902 2,407,869,438 - 22,164,431
-------------- -------------- -------------- -------------- --------------
Investments in PREIT-RUBIN
Advances to Partnerships and
Joint Ventures - - - -
Advances to PREIT-RUBIN -
-------------- -------------- -------------- -------------- --------------
2,148,632,536 259,236,902 2,407,869,438 - 22,164,431
-------------- -------------- -------------- -------------- --------------
Allowance for Possible Losses - - -
-------------- -------------- -------------- -------------- --------------
2,148,632,536 259,236,902 2,407,869,438 - 22,164,431
-------------- -------------- -------------- -------------- --------------
Other Assets:
Cash 13,158,371 4,327,918 17,486,289
Assets held for sale 37,686,662 - 37,686,662
Intangible Assets (2) 172,502,487 - 172,502,487
Other Assets, Net (3) 42,915,526 24,994,311 67,909,837 15,980,505
-------------- -------------- -------------- -------------- --------------
Total Other Assets 266,263,046 29,322,229 295,585,275 - 15,980,505
-------------- -------------- -------------- -------------- --------------
TOTAL ASSETS 2,414,895,582 288,559,131 2,703,454,713 - 38,144,936
============== ============== ============== ============== ==============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Mortgage Notes Payable 1,307,057,501 89,205,037 1,396,262,538 - -
- - -
Bank Loans Payable - - -
Acquisition Term Loan &Unsecured
Line of Credit - - - -
Construction Loans - - - - -
Liabilities Related to Assets
held for sale 5,840,385 5,840,385 - -
Other Liabilities (4) 40,094,056 6,010,869 46,104,925 - 4,113,008
-------------- -------------- -------------- -------------- --------------
TOTAL LIABILITIES 1,352,991,942 95,215,906 1,448,207,848 - 4,113,008
-------------- -------------- -------------- -------------- --------------
Minority Interest 8,464,264 126,715 8,590,979 -
-------------- -------------- -------------- -------------- --------------
Shareholders' Equity:
Shares of Beneficial Interest at
$1 Par - - - -
Preferred Shares $0.01 Par
Capital Contributed in Excess of
Par - - - -
Restricted Stock - - - -
Other Comprehensive Income - - - -
Retained Earnings (Distributions
in Excess of Net Income) - - - -
-------------- -------------- -------------- -------------- --------------
TOTAL SHAREHOLDERS' EQUITY - - - - -
-------------- -------------- -------------- -------------- --------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 1,361,456,206 $ 95,342,621 $1,456,798,827 $ - $ 4,113,008
============== ============== ============== ============== ==============
December 31, 2003 September 30, 2003
--------------------------------- ---------------------------------------------------
Combined Other
Corporate TOTAL Retail Multifamily Properties
-------------- -------------- -------------- -------------- --------------
ASSETS
Investments in Real Estate, at
cost $ - $ 2,540,102,220 $1,289,890,542 $ - $ 20,178,064
-------------- -------------- -------------- -------------- --------------
Accumulated Depreciation - (110,068,351) (95,312,157) (2,064,231)
-------------- -------------- -------------- -------------- --------------
Net Real Estate - 2,430,033,869 1,194,578,385 - 18,113,833
-------------- -------------- -------------- -------------- --------------
Investments in PREIT-RUBIN
Advances to Partnerships and
Joint Ventures - - - - -
Advances to PREIT-RUBIN
-------------- -------------- -------------- -------------- --------------
- 2,430,033,869 1,194,578,385 - 18,113,833
-------------- -------------- -------------- -------------- --------------
Allowance for Possible Losses - - - - -
-------------- -------------- -------------- -------------- --------------
- 2,430,033,869 1,194,578,385 - 18,113,833
-------------- -------------- -------------- -------------- --------------
Other Assets:
Cash 35,048,308 52,534,597 14,448,465 707,773
Assets held for sale - 37,686,662 -
Intangible Assets (2) 9,041,888 181,544,375 46,915,709
Other Assets, Net (3) 13,482,785 97,373,127 53,567,903 469,242 10,392,821
-------------- -------------- -------------- -------------- --------------
Total Other Assets 57,572,981 369,138,761 114,932,077 1,177,015 10,392,821
-------------- -------------- -------------- -------------- --------------
TOTAL ASSETS 57,572,981 2,799,172,630 1,309,510,462 1,177,015 28,506,654
============== ============== ============== ============== ==============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Mortgage Notes Payable - 1,396,262,538 739,061,360 - -
-
Bank Loans Payable 170,000,000 170,000,000
Acquisition Term Loan &Unsecured
Line of Credit - - - - -
Construction Loans - - - - -
Liabilities Related to Assets
held for sale - 5,840,385 - 951,750 -
Other Liabilities (4) 40,566,634 90,784,567 27,237,935 2,696,156
-------------- -------------- -------------- -------------- --------------
TOTAL LIABILITIES 210,566,634 1,662,887,490 766,299,295 951,750 2,696,156
-------------- -------------- -------------- -------------- --------------
Minority Interest 104,060,548 112,651,527 5,991,467 -
-------------- -------------- -------------- -------------- --------------
Shareholders' Equity:
Shares of Beneficial Interest at
$1 Par 35,544,280 35,544,280 - - -
Preferred Shares $0.01 Par 24,750 24,750
Capital Contributed in Excess of
Par 877,444,615 877,444,615 - - -
Restricted Stock (3,195,777) (3,195,777) - - -
Other Comprehensive Income (2,005,840) (2,005,840) - - -
Retained Earnings (Distributions
in Excess of Net Income) 115,821,585 115,821,585 - - -
-------------- -------------- -------------- -------------- --------------
TOTAL SHAREHOLDERS' EQUITY 1,023,633,613 1,023,633,613 - - -
-------------- -------------- -------------- -------------- --------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 1,338,260,795 $ 2,799,172,630 $ 772,290,762 $ 951,750 $ 2,696,156
============== ============== ============== ============== ==============
September 30, 2003 December 31, 2002
--------------------------------- ---------------------------------------------------
Combined Other
Corporate TOTAL Retail Multifamily Properties
-------------- -------------- -------------- -------------- --------------
ASSETS
Investments in Real Estate, at
cost $ - $ 1,310,068,606 $ 620,345,902 $ 305,335,579 $ 27,330,184
-------------- -------------- -------------- -------------- --------------
Accumulated Depreciation - (97,376,388) (79,121,149) (99,346,274) (2,025,613)
-------------- -------------- -------------- -------------- --------------
Net Real Estate - 1,212,692,218 541,224,753 205,989,305 25,304,571
-------------- -------------- -------------- -------------- --------------
Investments in PREIT-RUBIN
Advances to Partnerships and
Joint Ventures 1,200,000 1,200,000 - - -
Advances to PREIT-RUBIN
-------------- -------------- -------------- -------------- --------------
1,200,000 1,213,892,218 541,224,753 205,989,305 25,304,571
-------------- -------------- -------------- -------------- --------------
Allowance for Possible Losses - - - - -
-------------- -------------- -------------- -------------- --------------
1,200,000 1,213,892,218 541,224,753 205,989,305 25,304,571
-------------- -------------- -------------- -------------- --------------
Other Assets:
Cash 28,356,725 43,512,963 8,812,330 3,629,864 (24,316)
Assets held for sale -
Intangible Assets (2) 9,041,888 55,957,597
Other Assets, Net (3) 11,210,443 75,640,409 42,129,659 9,098,594 29,449
-------------- -------------- -------------- -------------- --------------
Total Other Assets 48,609,056 175,110,969 50,941,989 12,728,458 5,133
-------------- -------------- -------------- -------------- --------------
TOTAL ASSETS 49,809,056 1,389,003,187 592,166,742 218,717,763 25,309,704
============== ============== ============== ============== ==============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Mortgage Notes Payable - 739,061,360 280,092,311 206,387,459 -
Bank Loans Payable - - 94,712,082 2,500,000 33,587,919
Acquisition Term Loan &Unsecured
Line of Credit - - - - -
Construction Loans - - - - -
Liabilities Related to Assets
held for sale - 951,750 - - -
Other Liabilities (4) 12,458,923 42,393,014 14,288,005 5,270,638 5,145,887
-------------- -------------- -------------- -------------- --------------
TOTAL LIABILITIES 12,458,923 782,406,124 389,092,398 214,158,097 38,733,806
-------------- -------------- -------------- -------------- --------------
Minority Interest 58,270,123 64,261,590 126,715 -
-------------- -------------- -------------- -------------- --------------
Shareholders' Equity:
Shares of Beneficial Interest at
$1 Par 23,480,595 23,480,595 - - -
Preferred Shares $0.01 Par
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 $ 613,064,519 $ 1,389,003,187 $ 389,219,113 $ 214,158,097 $ 38,733,806
============== ============== ============== ============== ==============
December 31, 2002
---------------------------------
Combined
Corporate TOTAL
-------------- --------------
ASSETS
Investments in Real Estate, at
cost $ - $ 953,011,665
-------------- --------------
Accumulated Depreciation - (180,493,036)
-------------- --------------
Net Real Estate - 772,518,629
-------------- --------------
Investments in PREIT-RUBIN
Advances to Partnerships and
Joint Ventures 105,309 105,309
Advances to PREIT-RUBIN
-------------- --------------
105,309 772,623,938
-------------- --------------
Allowance for Possible Losses - -
-------------- --------------
105,309 772,623,938
-------------- --------------
Other Assets:
Cash 6,210,259 18,628,137
Assets held for sale -
Intangible Assets (2) 16,679,886 16,679,886
Other Assets, Net (3) 18,218,843 69,476,545
-------------- --------------
Total Other Assets 41,108,988 104,784,568
-------------- --------------
TOTAL ASSETS 41,214,297 877,408,506
============== ==============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Mortgage Notes Payable - 486,479,770
Bank Loans Payable - 130,800,000
Acquisition Term Loan &Unsecured
Line of Credit - -
Construction Loans - -
Liabilities Related to Assets
held for sale - -
Other Liabilities (4) 14,939,232 39,643,762
-------------- --------------
TOTAL LIABILITIES 14,939,232 656,923,532
-------------- --------------
Minority Interest 32,345,722 32,472,437
-------------- --------------
Shareholders' Equity:
Shares of Beneficial Interest at
$1 Par 16,697,117 16,697,117
Preferred Shares $0.01 Par
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 $ 235,297,491 $ 877,408,506
============== ==============
(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) Represents premium that is recorded in connection with debt assumed in
connection with property purchases. The debt is market to market at the
acquisition date and the premium is amortized through interest expense over
the remaining term of the debt.
(2) Deferred Costs, Prepaid Taxes and Expenses and Other Assets include Rents
and Other Receivables for Partnerships and Joint Ventures.
(4) For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and
Deferred Rents, Accrued Pension and Retirement Benefits.
Accrued Expenses and Other Liabilities.
NOTE: Reconciliation to GAAP is on pages 38 to 43.
PAGE 6
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
INCOME STATEMENT(1)(2)
QUARTERLY COMPARISON
(Wholly Owned vs. JV)
Q4 03 (3 months ended 12/31/03)
----------------------------------------------------------------------------------------
Wholly Owned JVs Corporate
--------------------------------- --------------------------------- --------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 50,838,550 $ 5,419,424 $ -
Straight-Lining of Base Rents 1,058,632 (3,327) -
Percentage Rents 3,474,981 15,832 -
Lease Termination 744,306 - -
Expense Recoveries & Other Income 26,370,619 2,222,547 -
----------------------------------------------------------------------------------------
TOTAL REVENUES 82,487,088 92% 7,654,476 8% $ -
----------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 22,382,595 1,941,169 -
Real Estate Taxes 7,026,507 669,198 -
Minority Interest in Properties 383,601 -
----------------------------------------------------------------------------------------
TOTAL EXPENSES 29,792,703 92% 2,610,367 8% -
----------------------------------------------------------------------------------------
NET OPERATING INCOME 52,694,385 91% 5,044,109 9% -
----------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES)
Management Company Revenue - - 4,048,766
Interest Income - - 335,524
General & Administrative:
Corporate Payroll(3) - - (9,538,925)
Other G&A Expenses(3) - - (8,461,798)
Earnings before interest expenses,
taxes, depreciation and amortization 52,694,385 119% 5,044,109 11% (13,616,433)
Interest Expense(4)(5) (13,107,191) (2,190,986) (1,033,909)
Depreciation & Amortization (17,917,055) (1,243,672) -
----------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (31,024,246) (3,434,658) (1,033,909)
----------------------------------------------------------------------------------------
Gains (losses) on sales of interests
in Real Estate 4,457,176 -
Income before Minority Interest 21,670,139 6,066,627 (14,650,342)
Minority Interest of O.P. Unitholders - - (1,198,594)
Income from Operations 21,670,139 6,066,627 (15,848,936)
Discontinued Operations:
Income from Disposed Real Estate -
Minority Interest of O.P. Unitholders (580,392)
Gain (losses) on Disposition of
Discontinued Operations 194,441
----------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS 194,441 - (580,392)
----------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) -
----------------------------------------------------------------------------------------
NET INCOME $ 21,864,580 190% $ 6,066,627 53% $ (16,429,328)
========================================================================================
Q4 03 (3 months ended 12/31/03) Q4 02 (3 months ended 12/31/02)
-------------------------------- --------------------------------------------------
Combined TOTAL %
Corporate TOTAL CHANGE Wholly Owned
-------------- -------------- -------------- ---------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) 56,257,974 67.5% $ 25,594,333
Straight-Lining of Base Rents 1,055,305 254.3% 244,804
Percentage Rents 3,490,813 175.1% 1,025,322
Lease Termination 744,306 N/A (37,538)
Expense Recoveries & Other Income 28,593,166 251.8% 5,095,910
----------------------------------------------------------------------------------------
TOTAL REVENUES 0% 90,141,564 108.3% 31,922,831 74%
----------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 24,323,764 116.3% 8,014,338
Real Estate Taxes 7,695,705 123.6% 2,553,492
Minority Interest in Properties 383,601 N/A
----------------------------------------------------------------------------------------
TOTAL EXPENSES 0% 32,403,070 120.6% 10,567,830 72%
----------------------------------------------------------------------------------------
NET OPERATING INCOME 0% 57,738,494 101.9% 21,355,001 75%
----------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES)
Management Company Revenue 4,048,766 -4.4% -
Interest Income 335,524 74.8% -
General & Administrative:
Corporate Payroll(3) (9,538,925) 180.9% -
Other G&A Expenses(3) (8,461,798) 180.9% -
Earnings before interest expenses,
taxes, depreciation and amortization -31% 44,122,061 65.8% 21,355,001 80%
Interest Expense(4)(5) (16,332,086) 48.8% (7,372,176)
Depreciation & Amortization (19,160,727) 155.4% (5,872,491)
----------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (35,492,813) 92.1% (13,244,667)
----------------------------------------------------------------------------------------
Gains (losses) on sales of interests
in Real Estate 4,457,176 N/A
Income before Minority Interest 13,086,424 60.9% 8,110,334
Minority Interest of O.P. Unitholders (1,198,594) 51.9% -
Income from Operations 11,887,830 61.9% 8,110,334
Discontinued Operations:
Income from Disposed Real Estate - N/A (17,217)
Minority Interest of O.P. Unitholders (580,392) N/A
Gain (losses) on Disposition of
Discontinued Operations 194,441 N/A
----------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS (385,951) N/A (17,217)
----------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) - N/A
----------------------------------------------------------------------------------------
NET INCOME -143% $ 11,501,879 56.9% $ 8,093,117 110%
========================================================================================
Q4 02 (3 months ended 12/31/02)
----------------------------------------------------------------------------------------
Combined
JVs Corporate TOTAL
--------------------------------- --------------------------------- --------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 7,994,055 $ - $ 33,588,388
Straight-Lining of Base Rents 53,050 - 297,854
Percentage Rents 243,602 - 1,268,924
Lease Termination 36,000 - (1,538)
Expense Recoveries & Other Income 3,032,121 - 8,128,031
----------------------------------------------------------------------------------------
TOTAL REVENUES 11,358,828 26% $ - 0% 43,281,659
----------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 3,232,048 - 11,246,386
Real Estate Taxes 887,884 - 3,441,376
Minority Interest in Properties
----------------------------------------------------------------------------------------
TOTAL EXPENSES 4,119,932 28% - 0% 14,687,762
----------------------------------------------------------------------------------------
NET OPERATING INCOME 7,238,896 25% - 0% 28,593,897
----------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES)
Management Company Revenue - 4,233,533 4,233,533
Interest Income - 191,895 191,895
General & Administrative:
Corporate Payroll(3) - (3,395,954) (3,395,954)
Other G&A Expenses(3) - (3,012,605) (3,012,605)
Earnings before interest expenses,
taxes, depreciation and amortization 7,238,896 27% (1,983,131) -7% 26,610,766
Interest Expense(4)(5) (3,604,559) - (10,976,735)
Depreciation & Amortization (1,630,536) (7,503,027)
----------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (5,235,095) - (18,479,762)
----------------------------------------------------------------------------------------
Gains (losses) on sales of interests
in Real Estate - -
Income before Minority Interest 2,003,801 (1,983,131) 8,131,004
Minority Interest of O.P. Unitholders - (789,137) (789,137)
Income from Operations 2,003,801 (2,772,268) 7,341,867
Discontinued Operations:
Income from Disposed Real Estate - - (17,217)
Minority Interest of O.P. Unitholders 6,605 6,605
Gain (losses) on Disposition of
Discontinued Operations -
----------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS 6,605 (10,612)
----------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) - - -
----------------------------------------------------------------------------------------
NET INCOME $ 2,003,801 27% $ (2,765,663) -38% $ 7,331,255
========================================================================================
(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) Includes approximately $5,900,000 in expenses associated with the merger
with Crown American Realty Trust.
(4) Capitalized interest expense for the line of credit and construction loans
of $338,458 not included in the quarter ended 12/31/03 and $400,079 not
included in the quarter ended 12/31/02.
(5) Interest expenses from bank loans are classified as corporate in 2003.
NOTE: Reconciliation to GAAP is on pages 38 to 43.
PAGE 7
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
INCOME STATEMENT (1)(2)
YEARLY COMPARISON
(Wholly Owned vs. JV) CY 2003
(12 months ended 12/31/03)
----------------------------------------------------------------------------------------
Wholly Owned JVs Corporate
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 135,727,675 $ 26,669,101 $ -
Straight-Lining of Base Rents 2,633,353 172,194 -
Percentage Rents 4,422,624 342,437 -
Lease Termination 1,155,954 10,995 -
Expense Recoveries & Other Income 55,467,932 10,135,508 -
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 199,407,538 84% 37,330,235 16% $ -
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 55,435,567 10,472,504 -
Real Estate Taxes 18,245,203 3,174,423 -
Minority Interest in Properties 901,518 -
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 74,582,288 85% 13,646,927 15% -
- -----------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 124,825,250 84% 23,683,308 16% -
- -----------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES)
Management Company Revenue - - 11,994,203
Interest Income - - 887,180
General & Administrative:
Corporate Payroll (3) - - (20,830,685)
Other G&A Expenses (3) - - (19,336,946)
- -----------------------------------------------------------------------------------------------------------------------------
Earnings before interest
expenses, taxes, depreciation
and amortization 124,825,250 103% 23,683,308 20% (27,286,248)
- -----------------------------------------------------------------------------------------------------------------------------
Interest Expense (4)(5) (33,511,864) (11,381,104) (7,466,709)
Depreciation & Amortization (39,924,614) (5,071,443) -
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (73,436,478) (16,452,547) (7,466,709)
- -----------------------------------------------------------------------------------------------------------------------------
Gains (losses) on sales of
interests in Real Estate 1,111,692 15,087,618 -
- -----------------------------------------------------------------------------------------------------------------------------
Income before Minority Interest 52,500,464 22,318,379 (34,752,957)
- -----------------------------------------------------------------------------------------------------------------------------
Minority Interest of O.P.
Unitholders - - (3,298,010)
- -----------------------------------------------------------------------------------------------------------------------------
Income from Operations 52,500,464 22,318,379 (38,050,967)
- -----------------------------------------------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate -
Minority Interest of O.P.
Unitholders (18,848,730)
Gain (losses) on Disposition of
Discontinued Operations 178,121,005
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS 178,121,005 - (18,848,730)
- -----------------------------------------------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) -
- -----------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 230,621,469 118% $ 22,318,379 11% $(56,899,697)
- -----------------------------------------------------------------------------------------------------------------------------
(Wholly Owned vs. JV) CY 2003 CY 2002
(12 months ended 12/31/03) (12 months ended 12/31/02)
--------------------------------- ---------------------------------
Combined TOTAL %
Corporate TOTAL CHANGE Wholly Owned
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) 162,396,776 29.4% $ 93,833,930
Straight-Lining of Base Rents 2,805,547 169.3% 802,346
Percentage Rents 4,765,061 89.1% 1,947,781
Lease Termination 1,166,949 3.1% 1,034,247
Expense Recoveries & Other Income 65,603,440 133.7% 16,980,821
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 0% 236,737,773 49.5% 114,599,125 72%
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 65,908,071 64.7% 28,493,148
Real Estate Taxes 21,419,626 69.5% 9,054,447
Minority Interest in Properties 901,518 N/A
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 0% 88,229,215 67.5% 37,547,595 71%
- -----------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 0% 148,508,558 40.6% 77,051,530 73%
- -----------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES)
Management Company Revenue 11,994,203 9.0% -
Interest Income 887,180 24.8% -
General & Administrative:
Corporate Payroll (3) (20,830,685) 47.3% -
Other G&A Expenses (3) (19,336,946) 82.3% -
- -----------------------------------------------------------------------------------------------------------------------------
Earnings before interest
expenses, taxes, depreciation
and amortization -23% 121,222,310 30.9% 77,051,530 83%
- -----------------------------------------------------------------------------------------------------------------------------
Interest Expense (4)(5) (52,359,677) 25.6% (27,204,903)
Depreciation & Amortization (44,996,057) 55.9% (21,411,233)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (97,355,734) 38.0% (48,616,136)
- -----------------------------------------------------------------------------------------------------------------------------
Gains (losses) on sales of
interests in Real Estate 16,199,310 N/A
- -----------------------------------------------------------------------------------------------------------------------------
Income before Minority Interest 40,065,886 81.7% 28,435,394
- -----------------------------------------------------------------------------------------------------------------------------
Minority Interest of O.P.
Unitholders (3,298,010) 161.2% -
- -----------------------------------------------------------------------------------------------------------------------------
Income from Operations 36,767,876 76.8% 28,435,394
- -----------------------------------------------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate - N/A 151,875
Minority Interest of O.P.
Unitholders (18,848,730) N/A
Gain (losses) on Disposition of
Discontinued Operations 178,121,005 N/A 4,085,164
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS 159,272,275 N/A 4,237,039
- -----------------------------------------------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) - N/A
- -----------------------------------------------------------------------------------------------------------------------------
NET INCOME -29% $ 196,040,151 727.9% $ 32,672,433 138%
- -----------------------------------------------------------------------------------------------------------------------------
(Wholly Owned vs. JV) CY 2002
(12 months ended 12/31/02)
----------------------------------------------------------------------------------------
Combined
JVs Corporate TOTAL
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 31,701,490 $ - $ 125,535,420
Straight-Lining of Base Rents 239,348 - 1,041,694
Percentage Rents 571,784 - 2,519,565
Lease Termination 97,132 - 1,131,379
Expense Recoveries & Other Income 11,095,567 - 28,076,388
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 43,705,321 28% $ - 0% 158,304,446
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 11,529,888 - 40,023,036
Real Estate Taxes 3,583,017 - 12,637,464
Minority Interest in Properties
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 15,112,905 29% - 0% 52,660,500
- -----------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 28,592,416 27% - 0% 105,643,946
- -----------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES)
Management Company Revenue - 11,002,570 11,002,570
Interest Income - 710,687 710,687
General & Administrative:
Corporate Payroll (3) - (14,137,939) (14,137,939)
Other G&A Expenses (3) - (10,608,902) (10,608,902)
- -----------------------------------------------------------------------------------------------------------------------------
Earnings before interest
expenses, taxes, depreciation
and amortization 28,592,416 31% (13,033,584) -14% 92,610,362
- -----------------------------------------------------------------------------------------------------------------------------
Interest Expense (4)(5) (14,595,957) 103,931 (41,696,929)
Depreciation & Amortization (7,446,295) (28,857,528)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (22,042,252) 103,931 (70,554,457)
- -----------------------------------------------------------------------------------------------------------------------------
Gains (losses) on sales of
interests in Real Estate - - -
- -----------------------------------------------------------------------------------------------------------------------------
Income before Minority Interest 6,550,164 (12,929,653) 22,055,905
- -----------------------------------------------------------------------------------------------------------------------------
Minority Interest of O.P.
Unitholders - (1,262,556) (1,262,556)
- -----------------------------------------------------------------------------------------------------------------------------
Income from Operations 6,550,164 (14,192,209) 20,793,349
- -----------------------------------------------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate - - 151,875
Minority Interest of O.P.
Unitholders (1,352,412) (1,352,412)
Gain (losses) on Disposition of
Discontinued Operations 4,085,164
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS (1,352,412) 2,884,627
- -----------------------------------------------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) - - -
- -----------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 6,550,164 28% $(15,544,621) -66% $ 23,677,976
- -----------------------------------------------------------------------------------------------------------------------------
(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) Includes approximately $6,400,000 in expenses associated with the
acquisition of the six shopping malls from the Rouse Company and the merger
with Crown American Realty Trust.
(4) Capitalized interest expense for the line of credit and construction loans
of $1,407,832 not included in the year ended 12/31/03 and $1,722,485 not
included in the year ended 12/31/02.
(5) Interest expenses from bank loans are classified as corporate in 2003.
NOTE: Reconciliation to GAAP is on pages 38 to 43.
PAGE 8
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
INCOME STATEMENT (1) (2)
QUARTERLY COMPARISON
(Line of Business)
Q4 03
(3 months ended 12/31/03)
----------------------------------------------------------------------------------------
OTHER
RETAIL MULTIFAMILY PROPERTIES
--------------------------------- --------------------------------- --------------
REAL ESTATE OPERATING REVENUES
Base Rents $ 56,172,818 $ - $ 85,156
Less Vacancies and Concessions - -
Straight-Lining of Base Rents 1,055,305 - -
Percentage Rents 3,490,813 - -
Lease Termination 744,306 - -
Expense Recoveries and Other
Income 28,591,304 2,248 (386)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 90,054,546 100% 2,248 0% 84,770
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 24,306,380 14,494 2,890
Real Estate Taxes 7,695,695 10 -
Minority Interest in Properties 383,601 - -
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 32,385,676 100% 14,504 0% 2,890
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 57,668,870 100% (12,256) 0% 81,880
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES)
Management Company Revenue - - -
Interest Income - - -
General and Administrative:
Corporate Payroll (3) - - -
Other General & Administrative (3) - - -
- -----------------------------------------------------------------------------------------------------------------------------
Earnings before interest
expenses, taxes, depreciation
and amortization 57,668,870 131% (12,256) 0% 81,880
- -----------------------------------------------------------------------------------------------------------------------------
Interest Expense (4)(5) (15,298,177) - -
Depreciation & Amortization (19,148,187) - (12,540)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (34,446,364) - (12,540)
- -----------------------------------------------------------------------------------------------------------------------------
Gains(losses) on sales of
interests in Real Estate - 4,457,176 -
- -----------------------------------------------------------------------------------------------------------------------------
Income before Minority Interest 23,222,506 4,444,920 69,340
- -----------------------------------------------------------------------------------------------------------------------------
Minority Interest of O.P.
Unitholders - - -
- -----------------------------------------------------------------------------------------------------------------------------
Income from Operations 23,222,506 4,444,920 69,340
- -----------------------------------------------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate - - -
Minority Interest of O.P.
Unitholders
Gain (losses) on Disposition of
Discontinued Operations 194,441
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - 194,441 -
- -----------------------------------------------------------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - -
- -----------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 23,222,506 202% $ 4,639,361 40% $ 69,340
- -----------------------------------------------------------------------------------------------------------------------------
Q4 03
(3 months ended 12/31/03)
---------------------------------------------------------------------
OTHER Combined TOTAL %
PROPERTIES CORPORATE TOTAL CHANGE
-------------- --------------------------------- -------------- --------------
REAL ESTATE OPERATING REVENUES
Base Rents $ - $ 56,257,974 61.2%
Less Vacancies and Concessions - - -100.0%
Straight-Lining of Base Rents - 1,055,305 254.3%
Percentage Rents - 3,490,813 175.1%
Lease Termination - 744,306 N/A
Expense Recoveries and Other
Income - 28,593,166 251.8%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 0% - - 90,141,564 108.3%
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance - 24,323,764 116.3%
Real Estate Taxes - 7,695,705 123.6%
Minority Interest in Properties - 383,601 N/A
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 0% - - 32,403,070 120.6%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 0% - - 57,738,494 101.9%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES)
Management Company Revenue 4,048,766 4,048,766 -4.4%
Interest Income 335,524 335,524 74.8%
General and Administrative:
Corporate Payroll (3) (9,538,925) (9,538,925) 180.9%
Other General & Administrative (3) (8,461,798) (8,461,798) 180.9%
- -----------------------------------------------------------------------------------------------------------------------------
Earnings before interest
expenses, taxes, depreciation
and amortization 0% (13,616,433) -31% 44,122,061 65.8%
- -----------------------------------------------------------------------------------------------------------------------------
Interest Expense (4)(5) (1,033,909) (16,332,086) 48.8%
Depreciation & Amortization - (19,160,727) 155.4%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (1,033,909) (35,492,813) 92.1%
- -----------------------------------------------------------------------------------------------------------------------------
Gains(losses) on sales of
interests in Real Estate - 4,457,176 N/A
- -----------------------------------------------------------------------------------------------------------------------------
Income before Minority Interest (14,650,342) 13,086,424 60.9%
- -----------------------------------------------------------------------------------------------------------------------------
Minority Interest of O.P.
Unitholders (1,198,594) (1,198,594) -51.9%
- -----------------------------------------------------------------------------------------------------------------------------
Income from Operations (15,848,936) 11,887,830 -61.9%
- -----------------------------------------------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate - - N/A
Minority Interest of O.P.
Unitholders (580,392) (580,392) N/A
Gain (losses) on Disposition of
Discontinued Operations 194,441 N/A
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS (580,392) (385,951) N/A
Extraordinary item (Loss on early
extinguishment of debt) - - N/A
- -----------------------------------------------------------------------------------------------------------------------------
NET INCOME 1% $ (16,429,328) -143% $ 11,501,879 56.9%
- -----------------------------------------------------------------------------------------------------------------------------
Q4 02
(3 months ended 12/31/02)
----------------------------------------------------------------------------------------
OTHER
RETAIL MULTIFAMILY PROPERTIES
--------------------------------- --------------------------------- --------------
REAL ESTATE OPERATING REVENUES
Base Rents $ 19,332,915 $ 15,473,911 $ 83,421
Less Vacancies and Concessions - (1,301,859) -
Straight-Lining of Base Rents 297,854 - -
Percentage Rents 1,268,924 - -
Lease Termination (56,329) 54,791 -
Expense Recoveries and Other
Income 7,427,404 701,190 (563)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 28,270,768 65% 14,928,033 34% 82,858
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 6,293,994 4,949,731 2,661
Real Estate Taxes 2,017,465 1,423,014 p897
Minority Interest in Properties
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 8,311,459 57% 6,372,745 43% 3,558
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 19,959,309 70% 8,555,288 30% 79,300
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES)
Management Company Revenue - - -
Interest Income - - -
General and Administrative:
Corporate Payroll (3) - - -
Other General & Administrative (3) - - -
- -----------------------------------------------------------------------------------------------------------------------------
Earnings before interest
expenses, taxes, depreciation
and amortization 19,959,309 75% 8,555,288 32% 79,300
- -----------------------------------------------------------------------------------------------------------------------------
Interest Expense (4)(5) (7,306,699) (3,670,036) -
Depreciation s& Amortization (5,074,812) (2,415,300) (12,915)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (12,381,511) (6,085,336) (12,915)
- -----------------------------------------------------------------------------------------------------------------------------
Gains(losses) on sales of
interests in Real Estate - - -
- -----------------------------------------------------------------------------------------------------------------------------
Income before Minority Interest 7,577,798 2,469,952 66,385
- -----------------------------------------------------------------------------------------------------------------------------
Minority Interest of O.P.
Unitholders - - -
- -----------------------------------------------------------------------------------------------------------------------------
Income from Operations 7,577,798 2,469,952 66,385
- -----------------------------------------------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate (17,217) - -
Minority Interest of O.P.
Unitholders
Gain (losses) on Disposition of
Discontinued Operations -
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS (17,217) - -
- -----------------------------------------------------------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - - -
- -----------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 7,560,581 103% $ 2,469,952 34% $ 66,385
- -----------------------------------------------------------------------------------------------------------------------------
Q4 02
(3 months ended 12/31/02)
---------------------------------------------------------------------
OTHER Combined
PROPERTIES CORPORATE TOTAL
-------------- --------------------------------- --------------
REAL ESTATE OPERATING REVENUES
Base Rents $ - $ 34,890,247
Less Vacancies and Concessions - (1,301,859)
Straight-Lining of Base Rents - 297,854
Percentage Rents - 1,268,924
Lease Termination (1,538)
Expense Recoveries and Other
Income - 8,128,031
- -----------------------------------------------------------------------------------------------------------
TOTAL REVENUES 0% - - 43,281,659
- -----------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance - 11,246,386
Real Estate Taxes - 3,441,376
Minority Interest in Properties
- -----------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 0% - - 14,687,762
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 0% - - 28,593,897
----------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES)
Management Company Revenue 4,233,533 4,233,533
Interest Income 191,895 191,895
General and Administrative:
Corporate Payroll (3) (3,395,954) (3,395,954)
Other General & Administrative (3) (3,012,605) (3,012,605)
- ----------------------------------------------------------------------------------------------------------
Earnings before interest
expenses, taxes, depreciation
and amortization 0% (1,983,131) -7% 26,610,766
----------------------------------------------------------------------------------------------------------
Interest Expense (4)(5) - (10,976,735)
Depreciation & Amortization - (7,503,027)
- ----------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) - (18,479,762)
- ----------------------------------------------------------------------------------------------------------
Gains(losses) on sales of
interests in Real Estate - -
- ----------------------------------------------------------------------------------------------------------
Income before Minority Interest (1,983,131) 8,131,004
- ----------------------------------------------------------------------------------------------------------
Minority Interest of O.P.
Unitholders (789,137) (789,137)
- ----------------------------------------------------------------------------------------------------------
Income from Operations (2,772,268) 7,341,867
- ----------------------------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate - (17,217)
Minority Interest of O.P.
Unitholders 6,605 6,605
Gain (losses) on Disposition of
Discontinued Operations -
- ----------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS 6,605 (10,612)
- ----------------------------------------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - -
----------------------------------------------------------------------------------------------------------
NET INCOME 1% $ (2,765,663) -38% $ 7,331,255
----------------------------------------------------------------------------------------------------------
(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) Includes approximately $5,900,000 in expenses associated with the merger
with Crown American Realty Trust.
(4) Capitalized interest expense for the line of credit and construction loans
of $338,458 not included in the quarter ended 12/31/03 and $400,079 not
included in the quarter ended 12/31/02.
(5) Interest expenses from bank loans are classified as corporate in 2003.
NOTE: Reconciliation to GAAP is on pages 38 to 43.
PAGE 9
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
INCOME STATEMENT (1) (2)
YEARLY COMPARISON
(Line of Business)
CY 2003
(12 months ended 12/31/03)
- -----------------------------------------------------------------------------------------------------------------------------
OTHER
RETAIL MULTIFAMILY PROPERTIES
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING
REVENUES
Base Rents $ 136,351,896 $ 28,402,431 $ 337,154
Less Vacancies and
Concessions (2,694,705) -
Straight-Lining of Base
Rents 2,805,547 - -
Percentage Rents 4,765,061 - -
Lease Termination 1,041,180 125,769 -
Expense Recoveries and
Other Income 64,537,689 1,063,887 1,864
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 209,501,373 88% 26,897,382 11% 339,018 0%
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING
EXPENSES
Operating and
Maintenance 55,923,463 9,971,515 13,093
Real Estate Taxes 18,957,900 2,459,030 2,696
Minority Interest in
Properties 901,518 - -
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 75,782,881 86% 12,430,545 14% 15,789 0%
- -----------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 133,718,492 90% 14,466,837 10% 323,229 0%
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME
(EXPENSES)
Management Company
Revenue - - -
Interest Income - - -
General and
Administrative:
Corporate Payroll (3) - - -
Other General &
Administrative (3) - - -
- -----------------------------------------------------------------------------------------------------------------------------
Earnings before interest
expenses, taxes,
depreciation and
amortization 133,718,492 110% 14,466,837 12% 323,229 0%
- -----------------------------------------------------------------------------------------------------------------------------
Interest Expense (4)(5) (39,240,910) (5,652,058) -
Depreciation &
Amortization (42,490,065) (2,454,834) (51,158)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME
(EXPENSES) (81,730,975) (8,106,892) (51,158)
- -----------------------------------------------------------------------------------------------------------------------------
Gains(losses) on sales of
interests in Real Estate 1,111,692 15,087,618 -
- -----------------------------------------------------------------------------------------------------------------------------
Income before Minority
Interest 53,099,209 21,447,563 272,071
- -----------------------------------------------------------------------------------------------------------------------------
Minority Interest of
O.P. Unitholders - - -
- -----------------------------------------------------------------------------------------------------------------------------
Income from Operations 53,099,209 21,447,563 272,071
- -----------------------------------------------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed
Real Estate - - -
Minority Interest of
O.P. Unitholders
Gain (losses) on
Disposition of
Discontinued Operations 178,121,005
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED
OPERATIONS - 178,121,005 -
- -----------------------------------------------------------------------------------------------------------------------------
Extraordinary item (Loss
on early extinguishment
of debt) - -
- -----------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 53,099,209 27% $ 199,568,568 102% $ 272,071 0%
- -----------------------------------------------------------------------------------------------------------------------------
CY 2003 CY 2002
(12 months ended 12/31/03) (12 months ended 12/31/02)
- --------------------------------------------------------------------------- ------------- -----------------------------
Combined TOTAL %
CORPORATE TOTAL CHANGE RETAIL
- --------------------------------------------------------------------------- ------------- -----------------------------
REAL ESTATE OPERATING
REVENUES
Base Rents $ - $ 165,091,481 26.3% $ 70,607,350
Less Vacancies and
Concessions - (2,694,705) -48.4% -
Straight-Lining of Base
Rents - 2,805,547 169.3% 1,041,694
Percentage Rents - 4,765,061 89.1% 2,519,565
Lease Termination - 1,166,949 3.1% 851,434
Expense Recoveries and
Other Income - 65,603,440 133.7% 25,373,374
- --------------------------------------------------------------------------- ------------- -----------------------------
TOTAL REVENUES - - 236,737,773 49.5% 100,393,417 63%
- --------------------------------------------------------------------------- ------------- -----------------------------
REAL ESTATE OPERATING
EXPENSES
Operating and
Maintenance - 65,908,071 64.7% 21,174,597
Real Estate Taxes - 21,419,626 69.5% 7,359,346
Minority Interest in
Properties - 901,518 N/A
- --------------------------------------------------------------------------- ------------- -----------------------------
TOTAL EXPENSES - - 88,229,215 67.5% 28,533,943 54%
- --------------------------------------------------------------------------- ------------- -----------------------------
NET OPERATING INCOME - - 148,508,558 40.6% 71,859,474 68%
- --------------------------------------------------------------------------- ------------- -----------------------------
TOTAL OTHER INCOME
(EXPENSES)
Management Company
Revenue 11,994,203 11,994,203 9.0% -
Interest Income 887,180 887,180 24.8% -
General and
Administrative:
Corporate Payroll (3) (20,830,685) (20,830,685) 47.3% -
Other General &
Administrative (3) (19,336,946) (19,336,946) 82.3% -
- --------------------------------------------------------------------------- ------------- -----------------------------
Earnings before interest
expenses, taxes,
depreciation and
amortization (27,286,248) -23% 121,222,310 30.9% 71,859,474 78%
- --------------------------------------------------------------------------- ------------- -----------------------------
Interest Expense (4)(5) (7,466,709) (52,359,677) 25.6% (27,541,955)
Depreciation &
Amortization - (44,996,057) 55.9% (19,502,954)
- --------------------------------------------------------------------------- ------------- -----------------------------
TOTAL OTHER INCOME
(EXPENSES) (7,466,709) (97,355,734) 38.0% (47,044,909)
- --------------------------------------------------------------------------- ------------- -----------------------------
Gains(losses) on sales of
interests in Real Estate - 16,199,310 N/A 4,085,164
- --------------------------------------------------------------------------- ------------- -----------------------------
Income before Minority
Interest (34,752,957) 40,065,886 53.3% 28,899,729
- --------------------------------------------------------------------------- ------------- -----------------------------
Minority Interest of
O.P. Unitholders (3,298,010) (3,298,010) -161.2% -
- --------------------------------------------------------------------------- ------------- -----------------------------
Income from Operations (38,050,967) 36,767,876 -47.8% 28,899,729
- --------------------------------------------------------------------------- ------------- -----------------------------
Discontinued Operations:
Income from Disposed
Real Estate - - N/A 151,875
Minority Interest of
O.P. Unitholders (18,848,730) (18,848,730) N/A
Gain (losses) on
Disposition of
Discontinued Operations 178,121,005 N/A
- --------------------------------------------------------------------------- ------------- -----------------------------
TOTAL DISCONTINUED
OPERATIONS (18,848,730) 159,272,275 N/A 151,875
- --------------------------------------------------------------------------- ------------- -----------------------------
Extraordinary item (Loss
on early extinguishment
of debt) - - N/A -
- --------------------------------------------------------------------------- ------------- -----------------------------
NET INCOME $ (56,899,697) -29% $ 196,040,151 727.9% $ 29,051,604 123%
- --------------------------------------------------------------------------- ------------- -----------------------------
CY 2002
(12 months ended 12/31/02)
- -----------------------------------------------------------------------------------------------------------------------------
OTHER
MULTIFAMILY PROPERTIES CORPORATE
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING
REVENUES
Base Rents $ 59,824,272 $ 330,004 $ -
Less Vacancies and
Concessions (5,226,206) - -
Straight-Lining of Base
Rents - - -
Percentage Rents - - -
Lease Termination 279,945 -
Expense Recoveries and
Other Income 2,704,140 (1,126) -
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 57,582,151 36% 328,878 0% - -
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE OPERATING
EXPENSES
Operating and
Maintenance 18,828,550 19,889 -
Real Estate Taxes 5,274,530 3,588 -
Minority Interest in
Properties
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 24,103,080 46% 23,477 0% - -
- -----------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 33,479,071 32% 305,401 0% - -
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME
(EXPENSES)
Management Company
Revenue - - 11,002,570
Interest Income - - 710,687
General and
Administrative: -
Corporate Payroll (3) - - (14,137,939)
Other General &
Administrative (3) - - (10,608,902)
- -----------------------------------------------------------------------------------------------------------------------------
Earnings before interest
expenses, taxes,
depreciation and
amortization 33,479,071 36% 305,401 0% (13,033,584) -14%
- -----------------------------------------------------------------------------------------------------------------------------
Interest Expense (4)(5) (14,258,905) - 103,931
Depreciation &
Amortization (9,302,914) (51,660) -
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME
(EXPENSES) (23,561,819) (51,660) 103,931
- -----------------------------------------------------------------------------------------------------------------------------
Gains(losses) on sales of
interests in Real Estate - - -
- -----------------------------------------------------------------------------------------------------------------------------
Income before Minority
Interest 9,917,252 253,741 (12,929,653)
- -----------------------------------------------------------------------------------------------------------------------------
Minority Interest of
O.P. Unitholders - - (1,262,556)
- -----------------------------------------------------------------------------------------------------------------------------
Income from Operations 9,917,252 253,741 (14,192,209)
- -----------------------------------------------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed
Real Estate - - -
Minority Interest of
O.P. Unitholders (1,352,412) Gain (losses) on
Disposition of
Discontinued Operations -
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED
OPERATIONS - - (1,352,412)
Extraordinary item (Loss
on early extinguishment
of debt) - - -
- -----------------------------------------------------------------------------------------------------------------------------
NET INCOME $ 9,917,252 42% $ 253,741 1% $ (15,544,621) -66%
- -----------------------------------------------------------------------------------------------------------------------------
CY 2002
(12 months
ended 12/31/
02)
Combined
TOTAL
REAL ESTATE OPERATING
REVENUES
Base Rents $ 130,761,626
Less Vacancies and
Concessions (5,226,206)
Straight-Lining of Base
Rents 1,041,694
Percentage Rents 2,519,565
Lease Termination 1,131,379
Expense Recoveries and
Other Income 28,076,388
- ------------------------------------------
TOTAL REVENUES 158,304,446
- ------------------------------------------
REAL ESTATE OPERATING
EXPENSES
Operating and
Maintenance 40,023,036
Real Estate Taxes 12,637,464
Minority Interest in
Properties
- ------------------------------------------
TOTAL EXPENSES 52,660,500
NET OPERATING INCOME 105,643,946
- ------------------------------------------
TOTAL OTHER INCOME
(EXPENSES)
Management Company
Revenue 11,002,570
Interest Income 710,687
General and
Administrative: -
Corporate Payroll (3) (14,137,939)
Other General &
Administrative (3) (10,608,902)
- ------------------------------------------
Earnings before interest
expenses, taxes,
depreciation and
amortization 92,610,362
- ------------------------------------------
Interest Expense (4)(5) (41,696,929)
Depreciation &
Amortization (28,857,528)
- ------------------------------------------
TOTAL OTHER INCOME
(EXPENSES) (70,554,457)
- ------------------------------------------
Gains(losses) on sales of
interests in Real
Estate 4,085,164
- ------------------------------------------
Income before Minority
Interest 26,141,069
- ------------------------------------------
Minority Interest of
O.P. Unitholders (1,262,556)
- ------------------------------------------
Income from Operations 24,878,513
Discontinued
- ------------------------------------------
Operations:
Income from Disposed
Real Estate 151,875
Minority Interest of
O.P. Unitholders (1,352,412)
Gain (losses) on
Disposition of
Discontinued Operations -
- ------------------------------------------
TOTAL DISCONTINUED
OPERATIONS (1,200,537)
- ------------------------------------------
Extraordinary item (Loss
on early extinguishment
of debt) -
- ------------------------------------------
NET INCOME $ 23,677,976
- ------------------------------------------
(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) Includes approximately $6,400,000 in expenses associated with the
acquisition of the six shopping malls from the Rouse Company and the merger
with Crown American Realty Trust
(4) Capitalized interest expense for the line of credit and construction loans
of $1,407,832 not included in the year ended 12/31/03 and $1,722,485 not
included in the year ended 12/31/02.
(5) Interest expenses from bank loans are classified as corporate in 2003.
NOTE: Reconciliation to GAAP is on pages 38 to 43.
PAGE 10
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
RETAIL INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Property Status)
Q4 03
(3 months ended 12/31/03)
----------------------------------------------------------------------------------------
Combined TOTAL WO JVs
-------------- --------------------------------- ---------------------------------
R.E. OPERATING REVENUES
Base Rents $ 56,172,818 $ 50,753,394 $ 5,419,424
Straight-Lining of Base Rents 1,055,305 1,058,632 (3,327)
Percentage Rents 3,490,813 3,474,981 15,832
Lease Termination and Other Income 744,306 744,306 -
Exp. Recoveries and Other Income 28,591,304 26,368,757 2,222,547
---------------------------------------------------------------------------------------
TOTAL REVENUES 90,054,546 82,400,070 92% 7,654,476 8%
---------------------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 24,306,380 22,365,211 1,941,169
Real Estate Taxes 7,695,695 7,026,497 669,198
Minority Interest in Properties 383,601 383,601 -
---------------------------------------------------------------------------------------
Total Operating Expenses 32,385,676 29,775,309 92% 2,610,367 8%
---------------------------------------------------------------------------------------
NET OPERATING INCOME 57,668,870 52,624,761 91% 5,044,109 9%
---------------------------------------------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense (15,298,177) (13,107,191) (2,190,986)
Depreciation & Amortization (19,148,187) (17,904,515) (1,243,672)
---------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (34,446,364) (31,011,706) (3,434,658)
---------------------------------------------------------------------------------------
Gains (losses) on sales of int. in
R.E - - -
---------------------------------------------------------------------------------------
Income before Minority Int. 23,222,506 21,613,055 1,609,451
---------------------------------------------------------------------------------------
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 $ 23,222,506 $ 21,613,055 93% $ 1,609,451 7%
============== ============== ============== ============== ==============
Q4 02
(3 months ended 12/31/02)
---------------------------------
% Change TOTAL % Change WO % Change JVs Combined TOTAL WO
-------------- -------------- -------------- -------------- --------------
R.E. OPERATING REVENUES
Base Rents 190.6% 304.6% -20.2% $ 19,332,915 $ 12,543,439
Straight-Lining of Base Rents 254.3% 332.4% -106.3% 297,854 244,804
Percentage Rents 175.1% 238.9% -93.5% 1,268,924 1,025,322
Lease Termination and Other Income N/A N/A N/A (56,329) (92,329)
Exp. Recoveries and Other Income 284.9% 483.0% -23.5% 7,427,404 4,522,896
-------------------------------------------------- --------------------------------
TOTAL REVENUES 218.5% 351.7% -23.7% 28,270,768 18,244,132
-------------------------------------------------- --------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 286.2% 531.0% -29.4% 6,293,994 3,544,435
Real Estate Taxes 281.5% 467.0% -14.0% 2,017,465 1,239,210
Minority Interest in Properties N/A N/A N/A - -
Total Operating Expenses 289.7% 522.4% -26.0% 8,311,459 4,783,645
-------------------------------------------------- --------------------------------
NET OPERATING INCOME 188.9% 291.0% -22.4% 19,959,309 13,460,487
-------------------------------------------------- --------------------------------
OTHER INCOME (EXP.)
Interest Expense 109.4% 224.0% -32.8% (7,306,699) (4,046,037)
Depreciation & Amortization 277.3% 395.2% -14.8% (5,074,812) (3,615,500)
-------------------------------------------------- --------------------------------
TOTAL OTHER INCOME (EXP.) 178.2% 304.8% -27.2% (12,381,511) (7,661,537)
-------------------------------------------------- --------------------------------
Gains (losses) on sales of int. in
R.E N/A N/A N/A - -
-------------------------------------------------- --------------------------------
Income before Minority Int. 206.5% 272.7% -9.5% 7,577,798 5,798,950
-------------------------------------------------- --------------------------------
Discontinued Operations: -
Income from Disposed Real Estate N/A N/A N/A (17,217) (17,217)
-------------------------------------------------- --------------------------------
Gain (losses) on Disposition of
Discontinued Operations N/A N/A N/A
-------------------------------------------------- --------------------------------
TOTAL DISCONTINUED OPERATIONS N/A N/A N/A (17,217) (17,217)
-------------------------------------------------- --------------------------------
Extraordinary item (Loss on early
extinguishments of debt) N/A N/A N/A - -
-------------- -------------- -------------- -------------- --------------
NET INCOME 207.2% 273.8% -9.5% $ 7,560,581 $ 5,781,733
============== ============== ============== ============== ==============
Q4 02
(3 months ended 12/31/02)
---------------------------------------------------
WO JVs
-------------- ---------------------------------
R.E. OPERATING REVENUES
Base Rents $ 6,789,476
Straight-Lining of Base Rents 53,050
Percentage Rents 243,602
Lease Termination and Other Income 36,000
Exp. Recoveries and Other Income 2,904,508
--------------------------------------------------
TOTAL REVENUES 65% 10,026,636 35%
--------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 2,749,559
Real Estate Taxes 778,255
Minority Interest in Properties -
--------------------------------------------------
Total Operating Expenses 58% 3,527,814 42%
--------------------------------------------------
NET OPERATING INCOME 67% 6,498,822 33%
--------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense (3,260,663)
Depreciation & Amortization (1,459,312)
--------------------------------------------------
TOTAL OTHER INCOME (EXP.) (4,719,975)
--------------------------------------------------
Gains (losses) on sales of int. in
R.E -
--------------------------------------------------
Income before Minority Int. 1,778,847
--------------------------------------------------
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 76% $ 1,778,847 24%
============== ============== ==============
SAME STORE COMPARISON
Q4 03
(3 months ended 12/31/03)
----------------------------------------------------------------------------------------
Combined SAME NEW
TOTAL(2)
---------------------------------------------------------------------------------------
Base Rents $ 56,172,818 $ 14,668,755 $ 37,464,979
Straight-Lining of Base Rents 1,055,305 149,000 868,743
Percentage Rents 3,490,813 674,956 2,408,154
Lease Termination 744,306 78,750 665,556
Exp. Recoveries and Other Income 28,591,304 4,832,838 21,547,620
---------------------------------------------------------------------------------------
TOTAL REVENUES 90,054,546 20,404,299 23% 62,955,052 70%
R.E. OPERATING EXPENSES
Operating and Maintenance 24,306,380 4,090,695 18,301,298
Real Estate Taxes 7,695,695 1,541,332 5,748,419
383,601 - 383,601
---------------------------------------------------------------------------------------
Total Operating Expenses 32,385,676 5,632,027 17% 24,433,318 75%
---------------------------------------------------------------------------------------
NET OPERATING INCOME 57,668,870 14,772,272 26% 38,521,734 67%
---------------------------------------------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense (15,298,177) (4,279,760) (9,805,806)
Depreciation & Amortization (19,148,187) (5,551,178) (12,610,718)
-------------- --------------------------------- ---------------------------------
TOTAL OTHER INCOME (EXP.) (34,446,364) (9,830,938) (22,416,524)
-------------- --------------------------------- ---------------------------------
Gain (losses) on sales of int. in
R.E. - -
---------------------------------------------------------------------------------------
Income before Minority Int. 23,222,506 4,941,334 16,105,210
---------------------------------------------------------------------------------------
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 $ 23,222,506 $ 4,941,334 21% $ 16,105,210 69%
=======================================================================================
Q4 03
(3 months ended 12/31/03)
---------------------------------
% Change Same
REDEV DIVEST Store
--------------------------------- --------------------------------- --------------
Base Rents $ 4,039,085 $ - 1.5%
Straight-Lining of Base Rents 37,562 - -28.2%
Percentage Rents 407,703 - -11.9%
Lease Termination - - N/A
Exp. Recoveries and Other Income 2,210,846 - 10.3%
--------------------------------- --------------------------------- --------------
TOTAL REVENUES 6,695,196 7% - 0% 3.5%
R.E. OPERATING EXPENSES
Operating and Maintenance 1,914,387 - 10.2%
Real Estate Taxes 405,944 - 4.1%
- N/A
--------------------------------- --------------------------------- --------------
Total Operating Expenses 2,320,331 7% - 0% 8.4%
--------------------------------- --------------------------------- --------------
NET OPERATING INCOME 4,374,865 8% - 0% 1.7%
--------------------------------- --------------------------------- --------------
OTHER INCOME (EXP.)
Interest Expense (1,212,611) - 23.0%
Depreciation & Amortization (986,291) - 46.4%
--------------------------------- --------------------------------- --------------
TOTAL OTHER INCOME (EXP.) (2,198,902) - 35.2%
--------------------------------- --------------------------------- --------------
Gain (losses) on sales of int. in - N/A
R.E.
--------------------------------- --------------------------------- --------------
Income before Minority Int. 2,175,963 - -31.9%
--------------------------------- --------------------------------- --------------
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 $ 2,175,963 9% $ - 0% -31.9%
================================= ================================= ==============
Q4 02
(3 months ended 12/31/02)
----------------------------------------------------------------------------------------
Combined SAME NEW
TOTAL(2)
-------------- --------------------------------- ---------------------------------
Base Rents $ 19,332,915 $ 14,458,295 $ 1,019,338
Straight-Lining of Base Rents 297,854 207,608 25,085
Percentage Rents 1,268,924 766,195 24,139
Lease Termination (56,329) (92,329) 36,000
Exp. Recoveries and Other Income 7,427,404 4,382,618 950,763
---------------------------------------------------------------------------------------
TOTAL REVENUES 28,270,768 19,722,387 70% 2,055,325 7%
R.E. OPERATING EXPENSES
Operating and Maintenance 6,293,994 3,713,390 826,768
Real Estate Taxes 2,017,465 1,480,971 133,181
- - -
---------------------------------------------------------------------------------------
Total Operating Expenses 8,311,459 5,194,361 62% 959,949 12%
---------------------------------------------------------------------------------------
NET OPERATING INCOME 19,959,309 14,528,026 73% 1,095,376 5%
---------------------------------------------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense (7,306,699) (3,479,548) (2,493,719)
Depreciation & Amortization (5,074,812) (3,791,160) (151,289)
---------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (12,381,511) (7,270,708) (2,645,008)
---------------------------------------------------------------------------------------
Gain (losses) on sales of int. in
R.E. - -
---------------------------------------------------------------------------------------
Income before Minority Int. 7,577,798 7,257,318 (1,549,632)
---------------------------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate (17,217) - -
Gain (losses) on Disposition of
Discontinued Operations
---------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS (17,217)
---------------------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - -
---------------------------------------------------------------------------------------
NET INCOME $ 7,560,581 $ 7,257,318 96% $ (1,549,632) -20%
=======================================================================================
Q4 02
(3 months ended 12/31/02)
---------------------------------
REDEV DIVEST
--------------------------------- --------------
Base Rents $ 3,855,282 $ -
Straight-Lining of Base Rents 65,161 -
Percentage Rents 478,590 -
Lease Termination - -
Exp. Recoveries and Other Income 2,094,023 3,692
--------------------------------- --------------
TOTAL REVENUES 6,493,056 23% 3,692
R.E. OPERATING EXPENSES
Operating and Maintenance 1,753,836 20,909
Real Estate Taxes 403,313 -
- -
--------------------------------- --------------
Total Operating Expenses 2,157,149 26% 20,909
--------------------------------- --------------
NET OPERATING INCOME 4,335,907 22% (17,217)
--------------------------------- --------------
OTHER INCOME (EXP.)
Interest Expense (1,333,432) -
Depreciation & Amortization (1,132,363) -
--------------------------------- --------------
TOTAL OTHER INCOME (EXP.) (2,465,795) -
--------------------------------- --------------
Gain (losses) on sales of int. in
R.E. -
--------------------------------- --------------
Income before Minority Int. 1,870,112 (17,217)
--------------------------------- --------------
Discontinued Operations:
Income from Disposed Real Estate - -
Gain (losses) on Disposition of
Discontinued Operations
--------------------------------- --------------
TOTAL DISCONTINUED OPERATIONS (17,217)
--------------------------------- --------------
Extraordinary item (Loss on early
extinguishment of debt) - -
--------------------------------- --------------
NET INCOME $ 1,870,112 25% $ (17,217)
================================= ==============
(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 38 to 43.
PAGE 11
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
RETAIL INCOME STATEMENT (1)
YEARLY COMPARISON
(Property Status)
CY 2003
(12 months ended 12/31/03)
--------------------------------------------------------
Combined WO JVs
TOTAL
---------------- ---------------- ----------------
R.E. OPERATING REVENUES
Base Rents $ 136,351,896 $ 11,750,593 $ 24,601,303
Straight-Lining of Base Rents 2,805,547 2,633,353 172,194
Percentage Rents 4,765,061 4,422,624 342,437
Lease Termination and Other Income 1,041,180 1,030,185 10,995
Exp. Recoveries and Other Income 64,537,689 54,467,531 10,070,158
---------------- ---------------- ----------------
TOTAL REVENUES 209,501,373 174,304,286 83% 35,197,087 17%
---------------- ---------------- ----------------
R.E. OPERATING EXPENSES
Operating and Maintenance 55,923,463 46,305,880 9,617,583
Real Estate Taxes 18,957,900 15,960,853 2,997,047
Minority Interest in Properties 901,518 901,518 -
---------------- ---------------- ----------------
Total Operating Expenses 75,782,881 63,168,251 83% 12,614,630 17%
---------------- ---------------- ----------------
NET OPERATING INCOME 133,718,492 111,136,035 83% 22,582,457 17%
---------------- ---------------- ----------------
OTHER INCOME (EXP.)
Interest Expense (39,240,910) (28,300,865) (10,940,045)
Depreciation & Amortization (42,490,065) (37,564,903) (4,925,162)
---------------- ---------------- ----------------
TOTAL OTHER INCOME (EXP.) (81,730,975) (65,865,768) (15,865,207)
---------------- ---------------- ----------------
Gains (losses) on sales of int. in R.E 1,111,692 1,111,692 -
Income before Minority Int. 53,099,209 46,381,959 6,717,250
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 $ 53,099,209 $ 46,381,959 87% $ 6,717,250 13%
---------------- ---------------- ----------------
% Change % Change % Change
TOTAL WO
---------------- ---------------- ----------------
R.E. OPERATING REVENUES
Base Rents 93.1% 148.9% -4.3%
Straight-Lining of Base Rents 169.3% 228.2% -28.1%
Percentage Rents 89.1% 127.1% -40.1%
Lease Termination and Other Income N/A N/A N/A
Exp. Recoveries and Other Income 154.4% 272.6% -6.4%
---------------- ---------------- ----------------
TOTAL REVENUES 108.7% 176.6% -5.8%
---------------- ---------------- ----------------
R.E. OPERATING EXPENSES
Operating and Maintenance 164.1% 288.4% 4.0%
Real Estate Taxes 157.6% 269.5% -1.4%
Minority Interest in Properties N/A N/A N/A
---------------- ---------------- ----------------
Total Operating Expenses 165.6% 288.9% 2.6%
---------------- ---------------- ----------------
NET OPERATING INCOME 86.1% 137.6% -10.0%
---------------- ---------------- ----------------
OTHER INCOME (EXP.)
Interest Expense 42.5% 94.8% -16.0%
Depreciation & Amortization 117.9% 190.8% -25.2%
---------------- ---------------- ----------------
TOTAL OTHER INCOME (EXP.) 73.7% 140.0% -19.1%
---------------- ---------------- ----------------
Gains (losses) on sales of int. in R.E N/A N/A N/A
Income before Minority Int. 83.7% 98.1% 22.4%
Discontinued Operations: -
Income from Disposed Real Estate N/A N/A N/A
Gain (losses) on Disposition of Discontinued Operations N/A
TOTAL DISCONTINUED OPERATIONS N/A N/A
Extraordinary item (Loss on early extinguishments of debt) N/A N/A N/A
---------------- ---------------- ----------------
NET INCOME 82.8% 96.8% 22.4%
---------------- ---------------- ----------------
CY 2002
(12 months ended 12/31/02)
--------------------------------------------------------
Combined WO JVs
JVs TOTAL
---------------- ---------------- ----------------
R.E. OPERATING REVENUES
Base Rents $ 70,607,350 $ 44,889,321 $ 25,718,029
Straight-Lining of Base Rents 1,041,694 802,346 239,348
Percentage Rents 2,519,565 1,947,781 571,784
Lease Termination and Other Income 851,434 754,302 97,132
Exp. Recoveries and Other Income 25,373,374 14,618,191 10,755,183
---------------- ---------------- ----------------
TOTAL REVENUES 100,393,417 63,011,941 63% 37,381,476 37%
---------------- ---------------- ----------------
R.E. OPERATING EXPENSES
Operating and Maintenance 21,174,597 11,922,757 9,251,840
Real Estate Taxes 7,359,346 4,319,121 3,040,225
Minority Interest in Properties - - -
---------------- ---------------- ----------------
Total Operating Expenses 28,533,943 16,241,878 57% 12,292,065 43%
---------------- ---------------- ----------------
NET OPERATING INCOME 71,859,474 46,770,063 65% 25,089,411 35%
---------------- ---------------- ----------------
OTHER INCOME (EXP.)
Interest Expense (27,541,955) (14,524,767) (13,017,189)
Depreciation & Amortization (19,502,954) (12,917,276) (6,585,678)
---------------- ---------------- ----------------
TOTAL OTHER INCOME (EXP.) (47,044,909) (27,442,043) (19,602,867)
---------------- ---------------- ----------------
Gains (losses) on sales of int. in R.E 4,085,164 4,085,164 -
Income before Minority Int. 28,899,729 23,413,184 5,486,544
Discontinued Operations: -
Income from Disposed Real Estate 151,875 151,875
Gain (losses) on Disposition of Discontinued Operations N/A N/A
TOTAL DISCONTINUED OPERATIONS N/A 151,875 151,875
Extraordinary item (Loss on early extinguishments of debt) - - -
---------------- ---------------- ----------------
NET INCOME $ 29,051,604 $ 23,565,059 81% $ 5,486,544 19%
---------------- ---------------- ----------------
SAME STORE COMPARISON
CY 2003
(12 months ended 12/31/03)
Combined
TOTAL (2) SAME NEW REDEV
------------- ------------- ------------- -------------
Base Rents $ 136,351,896 $ 46,751,966 $ 74,844,596 $ 14,755,335
Straight-Lining of Base Rents 2,805,547 688,338 1,877,361 239,848
Percentage Rents 4,765,061 1,209,707 2,816,629 738,725
Lease Termination 1,041,180 262,500 778,680 -
Exp. Recoveries and Other Income 64,537,689 14,682,875 42,904,369 6,950,445
------------- ------------- ------------- -------------
TOTAL REVENUES 209,501,373
------------- ------------- ------------- -------------
R.E. OPERATING EXPENSES
Operating and Maintenance 55,923,463 12,031,729 37,571,188 6,320,546
Real Estate Taxes 18,957,900 5,103,101 12,267,016 1,587,783
901,518 - 901,518 -
------------- ------------- ------------- -------------
Total Operating Expenses 75,782,881
------------- ------------- ------------- -------------
NET OPERATING INCOME 133,718,492
------------- ------------- ------------- -------------
OTHER INCOME (EXP.)
Interest Expense (39,240,910) (12,169,313) (22,215,134) (4,856,463)
Depreciation & Amortization (42,490,065) (12,432,023) (25,756,611) (4,301,431)
------------- ------------- ------------- -------------
TOTAL OTHER INCOME (EXP.) (81,730,975) (24,601,336) (47,971,745) (9,157,894)
------------- ------------- ------------- -------------
Gain (losses) on sales of int. in R.E. 1,111,692 - 1,111,692
Income before Minority Int. 53,099,209 21,859,220 24,510,168 6,729,822
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 $ 53,099,209 $ 21,859,220 41% $ 24,510,168 46% $ 6,729,822 13%
------------- ------------- ------------- -------------
CY 2003
(12 months ended 12/31/03)
% Change Combined
DIVEST Same Store TOTAL (2) SAME
------------- ------------- ------------- -------------
Base Rents $ - 2.2% $ 70,607,350 $ 45,757,398
Straight-Lining of Base Rents - 0.5% 1,041,694 684,788
Percentage Rents - -11.3% 2,519,565 1,363,550
Lease Termination - N/A 851,434 712,452
Exp. Recoveries and Other Income - 10.9% 25,373,374 13,245,563
------------- ------------- ------------- -------------
TOTAL REVENUES - 0% 3.0% 100,393,417
------------- ------------- ------------- -------------
R.E. OPERATING EXPENSES
Operating and Maintenance - 12.9% 21,174,597 10,661,145
Real Estate Taxes - 9.3% 7,359,346 4,668,099
N/A - - -
------------- ------------- ------------- -------------
Total Operating Expenses - 0% 11.8% 28,533,943
------------- ------------- ------------- -------------
NET OPERATING INCOME - 0% 0.1% 71,859,474
------------- ------------- ------------- -------------
OTHER INCOME (EXP.)
Interest Expense - 18.0% (27,541,955) (10,312,456)
Depreciation & Amortization - 1.7% (19,502,954) (12,229,512)
------------- ------------- ------------- -------------
TOTAL OTHER INCOME (EXP.) - 9.1% (47,044,909) (22,541,968)
------------- ------------- ------------- -------------
Gain (losses) on sales of int. in R.E. N/A 4,085,164 32,500 -
Income before Minority Int. - -8.6% 28,899,729 23,925,039
Discontinued Operations:
Income from Disposed Real Estate - N/A 151,875 -
Gain (losses) on Disposition of Discontinued
Operations - N/A
TOTAL DISCONTINUED OPERATIONS - N/A 151,875
Extraordinary item (Loss on early extinguishment
of debt) - N/A - -
------------- ------------- ------------- -------------
NET INCOME $ - 0% -8.6% $ 29,051,604 $ 23,925,039 82%
------------- ------------- ------------- -------------
NEW REDEV DIVEST
------------- ------------- -------------
Base Rents $ 10,645,586 $ 14,204,366 $ 847,898
Straight-Lining of Base Rents 198,749 158,157 5,698
Percentage Rents 151,861 1,004,154 12,700
Lease Termination 79,851 59,131 -
Exp. Recoveries and Other Income 5,410,474 6,717,337 138,805
------------- ------------- -------------
TOTAL REVENUES
------------- ------------- -------------
R.E. OPERATING EXPENSES
Operating and Maintenance 4,366,193 6,147,259 101,187
Real Estate Taxes 1,241,141 1,450,106 88,332
- -
------------- ------------- -------------
Total Operating Expenses
------------- ------------- -------------
NET OPERATING INCOME
------------- ------------- -------------
OTHER INCOME (EXP.)
Interest Expense (12,103,514) (5,125,985) (379,192)
Depreciation & Amortization (3,126,140) (4,147,302) (284,515)
------------- ------------- -------------
TOTAL OTHER INCOME (EXP.) (15,229,654) (9,273,287) (663,707)
------------- ------------- -------------
Gain (losses) on sales of int. in R.E. - 4,052,664
Income before Minority Int. (4,350,467) 5,272,493 4,204,539
Discontinued Operations:
Income from Disposed Real Estate - - -
Gain (losses) on Disposition of Discontinued
Operations
TOTAL DISCONTINUED OPERATIONS 4,204,539
Extraordinary item (Loss on early extinguishment
of debt) - -
------------- ------------- -------------
NET INCOME $ (4,350,467)-15%$ 5,272,493 18% $ 4,204,539
------------- ------------- -------------
(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 38 to 43.
PAGE 12
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
RETAIL INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Property Status)
Q4 03
(3 months ended 12/31/03)
---------------------------------------------------------------------------------------
Combined Enclosed Mall Power Center
TOTAL
---------------------------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 56,172,818 $ 47,978,472 $ 6,660,878
Straight-Lining of Base Rents 1,055,305 923,572 134,314
Percentage Rents 3,490,813 3,411,217 79,596
Lease Termination and Other
Income 744,306 665,556 78,750
Exp. Recoveries and Other Income 28,591,304 26,768,803 1,301,769
---------------------------------------------------------------------------------------
TOTAL REVENUES 90,054,546 79,747,620 89% 8,255,307 9%
---------------------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 24,306,380 23,235,944 746,445
Real Estate Taxes 7,695,695 6,759,060 729,862
Minority Interest in Properties 383,601 383,601 -
---------------------------------------------------------------------------------------
Total Operating Expenses 32,385,676 30,378,605 94% 1,476,307 5%
---------------------------------------------------------------------------------------
NET OPERATING INCOME 57,668,870 49,369,015 86% 6,779,000 12%
---------------------------------------------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense (15,298,177) (13,592,812) (1,668,332)
Depreciation & Amortization (19,148,187) (16,832,035) (1,885,239)
---------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (34,446,364) (30,424,847) (3,553,571)
---------------------------------------------------------------------------------------
Gains(losses) on sales of int. in
R.E. - - -
---------------------------------------------------------------------------------------
Income before Minority Int. 23,222,506 18,944,168 3,225,429
---------------------------------------------------------------------------------------
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 $ 23,222,506 $ 18,944,168 82% $ 3,225,429 14%
=======================================================================================
Q4 03
(3 months ended 12/31/03)
-------------------------------- ---------------------------------------------------
Strip Center % Change % Change % Change
TOTAL Enclosed Mall Power Center
-------------------------------- ---------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 1,533,468 190.6% 320.3% 2.5%
Straight-Lining of Base Rents (2,581) 254.3% 391.1% 20.4%
Percentage Rents - 175.1% 198.5% -22.9%
Lease Termination and Other
Income - N/A N/A N/A
Exp. Recoveries and Other Income 520,732 284.9% 357.3% 17.3%
-------------------------------- ---------------------------------------------------
TOTAL REVENUES 2,051,619 2% 218.5% 327.9% 6.8%
-------------------------------- ---------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 323,991 286.2% 341.9% 5.9%
Real Estate Taxes 206,773 281.5% 510.9% -3.5%
Minority Interest in Properties - N/A N/A N/A
-------------------------------- ---------------------------------------------------
Total Operating Expenses 530,764 2% 289.7% 377.3% 1.1%
-------------------------------- ---------------------------------------------------
NET OPERATING INCOME 1,520,855 3% 188.9% 302.3% 8.2%
-------------------------------- ---------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense (37,033) 109.4% 248.7% -49.1%
Depreciation & Amortization (430,913) 277.3% 517.4% 4.1%
-------------------------------- ---------------------------------------------------
TOTAL OTHER INCOME (EXP.) (467,946) 178.2% 359.3% -30.1%
-------------------------------- ---------------------------------------------------
Gains(losses) on sales of int. in
R.E. - N/A N/A N/A
-------------------------------- ---------------------------------------------------
Income before Minority Int. 1,052,909 206.5% 235.4% 172.9%
-------------------------------- ---------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate - -100.0% N/A N/A
-------------------------------- ---------------------------------------------------
Gain (losses) on Disposition of
Discontinued Operations N/A N/A N/A
-------------------------------- ---------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - N/A N/A N/A
-------------------------------- ---------------------------------------------------
Extraordinary item (Loss on
early extinguishment of debt) - N/A N/A N/A
-------------------------------- ---------------------------------------------------
NET INCOME $ 1,052,909 5% 207.2% 235.4% 172.9%
================================ ===================================================
SAME STORE COMPARISON
Q4 02
(3 months ended 12/31/02)
-------------- ----------------------------------------------------------------------
% Change Combined Enclosed Mall Power Center
Strip Center TOTAL
-------------- ----------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents 7.9% $ 19,332,915 $ 11,415,795 $ 6,495,768
Straight-Lining of Base Rents 45.3% 297,854 188,074 111,556
Percentage Rents N/A 1,268,924 1,142,955 103,232
Lease Termination and Other
Income N/A (56,329) 36,000 (92,329)
Exp. Recoveries and Other Income 12.3% 7,427,404 5,853,641 1,109,883
-------------- ----------------------------------------------------------------------
TOTAL REVENUES 7.6% 28,270,768 18,636,465 66% 7,728,110
-------------- ----------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance -2.3% 6,293,994 5,257,757 704,673
Real Estate Taxes 33.4% 2,017,465 1,106,499 755,993
Minority Interest in Properties N/A - - -
-------------- ----------------------------------------------------------------------
Total Operating Expenses 9.1% 8,311,459 6,364,256 77% 1,460,666
-------------- ----------------------------------------------------------------------
NET OPERATING INCOME 7.1% 19,959,309 12,272,209 61% 6,267,444
-------------- ----------------------------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense -72.3% (7,306,699) (3,898,063) (3,275,182)
Depreciation & Amortization -19.9% (5,074,812) (2,726,457) (1,810,139)
-------------- ----------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) -30.3% (12,381,511) (6,624,520) (5,085,321)
-------------- ----------------------------------------------------------------------
Gains(losses) on sales of int. in
R.E. N/A - - -
-------------- ----------------------------------------------------------------------
Income before Minority Int. 40.8% 7,577,798 5,647,689 1,182,123
-------------- ----------------------------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate N/A (17,217) - -
-------------- ----------------------------------------------------------------------
Gain (losses) on Disposition of
Discontinued Operations N/A
-------------- ----------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS N/A (17,217) - -
-------------- ----------------------------------------------------------------------
Extraordinary item (Loss on
early extinguishment of debt) N/A - - -
-------------- ----------------------------------------------------------------------
NET INCOME 44.1% $ 7,560,581 $ 5,647,689 75% $ 1,182,123
============== ======================================================================
Q4 02
(3 months ended 12/31/02)
---------------------------------------------------
Power Center Strip Center
---------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 1,421,352
Straight-Lining of Base Rents (1,776)
Percentage Rents 22,737
Lease Termination and Other
Income -
Exp. Recoveries and Other Income 463,880
---------------------------------------------------
TOTAL REVENUES 27% 1,906,193 7%
---------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 331,564
Real Estate Taxes 154,973
Minority Interest in Properties -
---------------------------------------------------
Total Operating Expenses 18% 486,537 6%
---------------------------------------------------
NET OPERATING INCOME 31% 1,419,656 7%
---------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense (133,455)
Depreciation & Amortization (538,216)
---------------------------------------------------
TOTAL OTHER INCOME (EXP.) (671,671)
---------------------------------------------------
Gains(losses) on sales of int. in
R.E. -
---------------------------------------------------
Income before Minority Int. 747,985
---------------------------------------------------
Discontinued Operations:
Income from Disposed Real Estate (17,217)
---------------------------------------------------
Gain (losses) on Disposition of
Discontinued Operations
TOTAL DISCONTINUED OPERATIONS (17,217)
---------------------------------------------------
"Extraordinary item (Loss on
early extinguishment of debt) -
---------------------------------------------------
NET INCOME 16% $ 730,768 10%
===================================================
SAME STORE COMPARISON
Q4 03
(3 months ended 12/31/03)
---------------------------------------------------------------------------------------
Combined Enclosed Mall Power Center
TOTAL
---------------------------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 14,668,755 $ 6,665,365 $ 6,660,878
Straight-Lining of Base Rents 149,000 19,334 134,314
Percentage Rents 674,956 595,360 79,596
Lease Termination 78,750 - 78,750
Exp. Recoveries and Other Income 4,832,838 3,144,556 1,301,769
---------------------------------------------------------------------------------------
TOTAL REVENUES 20,404,299 10,424,615 51% 8,255,307 40%
---------------------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 4,090,695 3,096,712 746,445
Real Estate Taxes 1,541,332 656,749 729,862
Minority Interest in Properties - - -
---------------------------------------------------------------------------------------
Total Operating Expenses 5,632,027 3,753,461 67% 1,476,307 26%
---------------------------------------------------------------------------------------
NET OPERATING INCOME 14,772,272 6,671,154 45% 6,779,000 46%
---------------------------------------------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense (4,279,760) (2,574,395) (1,668,332)
Depreciation & Amortization (5,551,178) (3,292,089) (1,885,239)
---------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (9,830,938) (5,866,484) (3,553,571)
---------------------------------------------------------------------------------------
Gain (losses) on sales of int. in
R.E - - -
---------------------------------------------------------------------------------------
Income before Minority Int. 4,941,334 804,670 3,225,429
---------------------------------------------------------------------------------------
Extraordinary item (Loss on
early extinguishment of debt) - - -
---------------------------------------------------------------------------------------
NET INCOME $ 4,941,334 $ 804,670 16% $ 3,225,429 65%
=======================================================================================
Q4 03
(3 months ended 12/31/03)
-------------------------------- ---------------------------------------------------
Strip Center % Change % Change % Change
TOTAL (1) Enclosed Mall Power Center
-------------------------------- ---------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 1,342,512 1.5% -0.3% 2.5%
Straight-Lining of Base Rents (4,648) -28.2% -75.5% 20.4%
Percentage Rents - -11.9% -10.3% -22.9%
Lease Termination - N/A N/A N/A
Exp. Recoveries and Other Income 386,513 10.3% 10.4% 17.3%
-------------------------------- ---------------------------------------------------
TOTAL REVENUES 1,724,377 8% 3.5% 1.4% 6.8%
-------------------------------- ---------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 247,538 10.2% 13.2% 5.9%
Real Estate Taxes 154,721 4.1% 8.6% -3.5%
Minority Interest in Properties - N/A N/A N/A
-------------------------------- ---------------------------------------------------
Total Operating Expenses 402,259 7% 8.4% 12.3% 1.1%
-------------------------------- ---------------------------------------------------
NET OPERATING INCOME 1,322,118 9% 1.7% -3.8% 8.2%
-------------------------------- ---------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense (37,033) 23.0% 48.9% -2.6%
Depreciation & Amortization (373,850) 46.4% 122.0% 4.1%
-------------------------------- ---------------------------------------------------
TOTAL OTHER INCOME (EXP.) (410,883) 35.2% 82.6% 0.9%
-------------------------------- ---------------------------------------------------
Gain (losses) on sales of int. in
R.E - N/A N/A N/A
-------------------------------- ---------------------------------------------------
Income before Minority Int. 911,235 -31.9% -78.4% 17.5%
-------------------------------- ---------------------------------------------------
Extraordinary item (Loss on
early extinguishment of debt) -
-------------------------------- ---------------------------------------------------
NET INCOME $ 911,235 18% -31.9% -78.4% 17.5%
-------------------------------- ---------------------------------------------------
Q4 02
(3 months ended 12/31/02)
-------------- ---------------------------------------------------------------------
% Change Combined Enclosed Mall Power Center
Strip Center TOTAL
-------------- ---------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents 5.2% $ 14,458,295 $ 6,686,810 $ 6,495,768
Straight-Lining of Base Rents -127.0% 207,608 78,855 111,556
Percentage Rents N/A 766,195 663,939 103,232
Lease Termination N/A (92,329) - (92,329)
Exp. Recoveries and Other Income -9.1% 4,382,618 2,847,609 1,109,883
-------------- ---------------------------------------------------------------------
TOTAL REVENUES 0.4% 19,722,387 10,277,213 52% 7,728,110
-------------- ---------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance -9.1% 3,713,390 2,736,519 704,673
Real Estate Taxes 28.9% 1,480,971 604,953 755,993
Minority Interest in Properties N/A - - -
-------------- ---------------------------------------------------------------------
Total Operating Expenses 2.6% 5,194,361 3,341,472 64% 1,460,666
-------------- ---------------------------------------------------------------------
NET OPERATING INCOME -0.2% 14,528,026 6,935,741 48% 6,267,444
-------------- ---------------------------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense -2.7% (3,479,548) (1,728,857) (1,712,619)
Depreciation & Amortization -24.9% (3,791,160) (1,483,247) (1,810,139)
-------------- ---------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) -23.3% (7,270,708) (3,212,104) (3,522,758)
Gain (losses) on sales of int. in
-------------- ---------------------------------------------------------------------
R.E N/A - - -
-------------- ---------------------------------------------------------------------
Income before Minority Int. 15.5% 7,257,318 3,723,637 2,744,686
-------------- ---------------------------------------------------------------------
Extraordinary item (Loss on
early extinguishment of debt) - -
-------------- ---------------------------------------------------------------------
NET INCOME 15.5% $ 7,257,318 $ 3,723,637 51% $ 2,744,686
============== =====================================================================
Q4 02
(3 months ended 12/31/02)
--------------------------------------------------
Power Center Strip Center
--------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 1,275,717
Straight-Lining of Base Rents 17,197
Percentage Rents (976)
Lease Termination -
Exp. Recoveries and Other Income 425,126
--------------------------------------------------
TOTAL REVENUES 39% 1,717,064 9%
--------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 272,198
Real Estate Taxes 120,025
Minority Interest in Properties -
--------------------------------------------------
Total Operating Expenses 28% 392,223 8%
--------------------------------------------------
NET OPERATING INCOME 43% 1,324,841 9%
--------------------------------------------------
OTHER INCOME (EXP.)
Interest Expense (38,072)
Depreciation & Amortization (497,774)
--------------------------------------------------
TOTAL OTHER INCOME (EXP.) (535,846)
--------------------------------------------------
Gain (losses) on sales of int. in
R.E -
--------------------------------------------------
Income before Minority Int. 788,995
--------------------------------------------------
Extraordinary item (Loss on
early extinguishment of debt) -
--------------------------------------------------
NET INCOME 38% $ 788,995 11%
==================================================
(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 38 to 43.
PAGE 13
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
RETAIL INCOME STATEMENT (1)
YEARLY COMPARISON
(Property Status)
CY 2003
(12 months ended 12/31/03)
-------------------------------------------------------------------------
Combined TOTAL Enclosed Mall Power Center Strip Center
R.E. OPERATING REVENUES
Base Rents $ 136,351,896 $ 104,094,364 $ 26,189,828 $ 6,067,704
Straight-Lining of Base Rents 2,805,547 2,039,421 644,281 121,845
Percentage Rents 4,765,061 4,479,817 283,594 1,650
Lease Termination and Other Income 1,041,180 778,680 262,500 -
Exp. Recoveries and Other Income 64,537,689 57,478,776 5,134,936 1,923,977
-------------- -------------- -------------- --------------
TOTAL REVENUES 209,501,373 168,871,058 81% 32,515,139 16% 8,115,176 4%
-------------- -------------- -------------- --------------
R.E. OPERATING EXPENSES
Operating and Maintenance 55,923,463 51,224,856 3,367,908 1,330,699
Real Estate Taxes 18,957,900 15,189,118 2,982,280 786,502
Minority Interest in Properties 901,518 901,518 - -
-------------- -------------- -------------- --------------
Total Operating Expenses 75,782,881 67,315,492 89% 6,350,188 8% 2,117,201 3%
-------------- -------------- -------------- --------------
NET OPERATING INCOME 133,718,492 101,555,566 76% 26,164,951 20% 5,997,975 4%
-------------- -------------- -------------- --------------
OTHER INCOME (EXP.)
Interest Expense (39,240,910) (32,356,067) (6,735,066) (149,777)
Depreciation & Amortization (42,490,065) (33,169,577) (7,609,792) (1,710,696)
-------------- -------------- -------------- --------------
TOTAL OTHER INCOME (EXP.) (81,730,975) (65,525,644) (14,344,858) (1,860,473)
-------------- -------------- -------------- --------------
Gains(losses) on sales of int. in
R.E. 1,111,692 - - 1,111,692
-------------- -------------- -------------- --------------
Income before Minority Int. 53,099,209 36,029,922 11,820,093 5,249,194
-------------- -------------- -------------- --------------
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 $53,099,209 $36,029,922 68% $ 11,820,093 22% $ 5,249,194 10%
-------------- -------------- -------------- --------------
% Change % Change % Change % Change
TOTAL Enclosed Mall Power Center Strip Center
--------------- --------------- --------------- ---------------
R.E. OPERATING REVENUES
Base Rents 93.1% 161.4% 2.8% 14.3%
Straight-Lining of Base Rents 169.3% 251.2% 46.7% 457.6%
Percentage Rents 89.1% 102.8% 0.9% N/A
Lease Termination and Other Income N/A N/A N/A N/A
Exp. Recoveries and Other Income 154.4% 192.8% 19.6% 33.1%
--------------- --------------- --------------- ---------------
TOTAL REVENUES 108.7% 170.6% 4.3% 19.3%
--------------- --------------- --------------- ---------------
R.E. OPERATING EXPENSES
Operating and Maintenance 164.1% 197.7% 23.8% 6.6%
Real Estate Taxes 157.6% 276.0% 12.8% 16.3%
Minority Interest in Properties N/A N/A N/A N/A
--------------- --------------- --------------- ---------------
Total Operating Expenses 165.6% 216.8% 18.4% 10.0%
--------------- --------------- --------------- ---------------
NET OPERATING INCOME 86.1% 146.8% 1.3% 22.9%
--------------- --------------- --------------- ---------------
OTHER INCOME (EXP.)
Interest Expense 42.5% 123.9% -47.2% -53.4%
Depreciation & Amortization 117.9% 214.7% 3.4% 7.0%
--------------- --------------- --------------- ---------------
TOTAL OTHER INCOME (EXP.) 73.7% 162.1% -28.7% -3.1%
--------------- --------------- --------------- ---------------
Gains(losses) on sales of int. in
R.E. N/A N/A N/A N/A
--------------- --------------- --------------- ---------------
Income before Minority Int. 83.7% 122.9% 107.6% -25.5%
--------------- --------------- --------------- ---------------
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 82.8% 122.9% 107.6% -27.1%
--------------- --------------- --------------- ---------------
CY 2002
(12 months ended 12/31/02)
-------------------------------------------------------------------------
Combined TOTAL Enclosed Mall Power Center Strip Center
R.E. OPERATING REVENUES
Base Rents $ 70,607,350 $ 39,823,123 $ 25,476,799 $ 5,307,428
Straight-Lining of Base Rents 1,041,694 580,684 439,157 21,853
Percentage Rents 2,519,565 2,208,613 281,016 29,936
Lease Termination and Other Income N/A 851,434 156,263 695,171
Exp. Recoveries and Other Income 25,373,374 19,633,919 4,294,392 1,445,063
------------- ------------- ------------- -------------
TOTAL REVENUES 100,393,417 62,402,602 62% 31,186,535 31% 6,804,280 7%
------------- ------------- ------------- -------------
R.E. OPERATING EXPENSES
Operating and Maintenance 21,174,597 17,206,532 2,719,491 1,248,574
Real Estate Taxes 7,359,346 4,039,466 2,643,487 676,393
Minority Interest in Properties - - - -
------------- ------------- ------------- -------------
Total Operating Expenses 28,533,943 21,245,998 74% 5,362,978 19% 1,924,967 7%
------------- ------------- ------------- -------------
NET OPERATING INCOME 71,859,474 41,156,604 57% 25,823,557 36% 4,879,313 7%
------------- ------------- ------------- -------------
OTHER INCOME (EXP.)
Interest Expense (27,541,955) (14,454,016) (12,766,796) (321,143)
Depreciation & Amortization (19,502,954) (10,541,583) (7,362,199) (1,599,172)
------------- ------------- ------------- -------------
TOTAL OTHER INCOME (EXP.) (47,044,909) (24,995,599) (20,128,995) (1,920,315)
------------- ------------- ------------- -------------
Gains(losses) on sales of int. in
R.E. 4,085,164 - - 4,085,164
------------- ------------- ------------- -------------
Income before Minority Int. 28,899,729 16,161,005 5,694,562 7,044,162
------------- ------------- ------------- -------------
Discontinued Operations:
Income from Disposed Real Estate 151,875 - - 151,875
------------- ------------- ------------- -------------
Gain (losses) on Disposition of
Discontinued Operations
TOTAL DISCONTINUED OPERATIONS 151,875 - - 151,875
------------- ------------- ------------- -------------
Extraordinary item (Loss on early
extinguishment of debt) - - - -
------------- ------------- ------------- -------------
NET INCOME $ 29,051,604 $16,161,005 56% $ 5,694,562 20% $ 7,196,037 25%
------------- ------------- ------------- -------------
SAME STORE COMPARISON
CY 2003
(12 months ended 12/31/03)
-------------------------------------------------------------------------
Combined TOTAL Enclosed Mall Power Center Strip Center
R.E. OPERATING REVENUES
Base Rents $ 46,751,966 $ 16,317,723 $ 26,189,828 $ 4,244,415
Straight-Lining of Base Rents 688,338 65,217 644,281 (21,160)
Percentage Rents 1,209,707 926,113 283,594 -
Lease Termination 262,500 - 262,500 -
Exp. Recoveries and Other Income 14,682,875 8,218,172 5,134,936 1,329,767
------------- ------------- ------------- -------------
TOTAL REVENUES 63,595,386 25,527,225 40% 32,515,139 51% 5,553,022 9%
------------- ------------- ------------- -------------
R.E. OPERATING EXPENSES
Operating and Maintenance 12,031,729 7,698,292 3,367,908 965,529
Real Estate Taxes 5,103,101 1,595,927 2,982,280 524,894
Minority Interest in Properties - - - -
------------- ------------- ------------- -------------
Total Operating Expenses 17,134,830 9,294,219 54% 6,350,188 37% 1,490,423 9%
------------- ------------- ------------- -------------
NET OPERATING INCOME 46,460,556 16,233,006 35% 26,164,951 56% 4,062,599 9%
------------- ------------- ------------- -------------
OTHER INCOME (EXP.)
Interest Expense (12,169,313) (5,284,470) (6,735,066) (149,777)
Depreciation & Amortization (12,432,023) (3,782,396) (7,609,792) (1,039,835)
------------- ------------- ------------- -------------
TOTAL OTHER INCOME (EXP.) (24,601,336) (9,066,866) (14,344,858) (1,189,612)
------------- ------------- ------------- -------------
Gain (losses) on sales of int. in
R.E - - - -
Income before Minority Int. 21,859,220 7,166,140 11,820,093 2,872,987
------------- ------------- ------------- -------------
Extraordinary item (Loss on early
extinguishment of debt) - - -
NET INCOME $ 21,859,220 $ 7,166,140 33% $ 11,820,093 54% $ 2,872,987 13%
------------- ------------- ------------- -------------
% Change % Change % Change % Change
TOTAL Enclosed Mall Power Center Strip Center
--------------- --------------- --------------- ---------------
R.E. OPERATING REVENUES
Base Rents 2.2% 0.7% 2.8% 4.3%
Straight-Lining of Base Rents 0.5% -65.9% 46.7% -139.0%
Percentage Rents -11.3% -14.2% 0.9% N/A
Lease Termination N/A N/A N/A N/A
Exp. Recoveries and Other Income 10.9% 6.5% 19.6% 7.7%
--------------- --------------- --------------- ---------------
TOTAL REVENUES 3.0% 1.2% 4.3% 3.5%
--------------- --------------- --------------- ---------------
R.E. OPERATING EXPENSES
Operating and Maintenance 12.9% 9.9% 23.8% 3.1%
Real Estate Taxes 9.3% 4.1% 12.8% 6.7%
Minority Interest in Properties N/A N/A N/A N/A
--------------- --------------- --------------- ---------------
Total Operating Expenses 11.8% 8.9% 18.4% 4.3%
--------------- --------------- --------------- ---------------
NET OPERATING INCOME 0.1% -2.7% 1.3% 3.3%
--------------- --------------- --------------- ---------------
OTHER INCOME (EXP.)
Interest Expense 18.0% 59.0% -1.5% -2.7%
Depreciation & Amortization 1.7% -1.5% 3.4% 1.3%
--------------- --------------- --------------- ---------------
TOTAL OTHER INCOME (EXP.) 9.1% 26.6% 1.0% 0.8%
--------------- --------------- --------------- ---------------
Gain (losses) on sales of int. in
R.E N/A N/A N/A N/A
Income before Minority Int. -8.6% -24.7% 1.7% 3.1%
--------------- --------------- --------------- ---------------
Extraordinary item (Loss on early
extinguishment of debt) - -
NET INCOME -8.6% -24.7% 1.7% 3.1%
--------------- --------------- --------------- ---------------
CY 2002
(12 months ended 12/31/02)
-------------------------------------------------------------------------
Combined TOTAL Enclosed Mall Power Center Strip Center
R.E. OPERATING REVENUES
Base Rents $ 45,757,398 $ 16,210,308 $ 25,476,799 $ 4,070,291
Straight-Lining of Base Rents 684,788 191,331 439,157 54,300
Percentage Rents 1,363,550 1,079,291 281,016 3,243
Lease Termination 712,452 17,281 695,171 -
Exp. Recoveries and Other Income 13,245,563 7,716,349 4,294,392 1,234,822
------------- ------------- ------------- -------------
TOTAL REVENUES 61,763,751 25,214,560 41% 31,186,535 50% 5,362,656 9%
------------- ------------- ------------- -------------
R.E. OPERATING EXPENSES
Operating and Maintenance 10,661,145 7,005,024 2,719,491 936,630
Real Estate Taxes 4,668,099 1,532,462 2,643,487 492,150
Minority Interest in Properties - - - -
------------- ------------- ------------- -------------
Total Operating Expenses 15,329,244 8,537,486 56% 5,362,978 35% 1,428,780 9%
------------- ------------- ------------- -------------
NET OPERATING INCOME 46,434,507 16,677,074 36% 25,823,557 56% 3,933,876 8%
------------- ------------- ------------- -------------
OTHER INCOME (EXP.)
Interest Expense (10,312,456) (3,323,173) (6,835,413) (153,870)
Depreciation & Amortization (12,229,512) (3,840,558) (7,362,199) (1,026,755)
------------- ------------- ------------- -------------
TOTAL OTHER INCOME (EXP.) (22,541,968) (7,163,731) (14,197,612) (1,180,625)
------------- ------------- ------------- -------------
Gain (losses) on sales of int. in
R.E 32,500 - - 32,500
Income before Minority Int. 23,925,039 9,513,343 11,625,945 2,785,751
------------- ------------- ------------- -------------
Extraordinary item (Loss on early
extinguishment of debt) - -
NET INCOME $ 23,925,039 $ 9,513,343 40% $ 11,625,945 49% $ 2,785,751 12%
------------- ------------- ------------- -------------
(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 38 to 43.
PAGE 14
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
CY 12/31/03
FUNDS FROM OPERATIONS (1) Q4:12/31/03 % Change Q4:12/31/02 (12 months)
----------------- ----------------- ----------------- -----------------
Net Income $ 11,501,879 56.9% $ 7,331,255 $ 196,040,151
Dividends on preferred shares (1,533,000) - (1,533,000)
----------------- ----------------- ----------------- -----------------
Net Income allocable to common
shares $ 9,968,879 36.0% $ 7,331,255 $ 194,507,151
Minority Interest in operating
partnership-operations 1,198,594 51.9% 789,137 3,298,010
Minority Interest in operating
partnership-discontinued
operations 580,392 N/A (6,605) 18,848,730
(Gain) loss on sales of interests
in real estate (4,457,176) N/A - (16,199,310)
Gain (losses) on disposition of
discontinued operations (194,441) N/A - (178,121,005)
Depreciation & amortization: (2)
Wholly owned and consolidated
partnerships 17,852,055 401.0% 3,563,415 37,356,061
Unconsolidated partnerships
and joint ventures 1,243,672 -23.7% 1,630,536 5,071,443
Discontinued operations - N/A 2,244,076 2,308,553
Financing repayment fee
----------------- ----------------- ----------------- -----------------
FFO $ 26,191,975 68.4% $ 15,551,814 $ 67,069,633
----------------- ----------------- ----------------- -----------------
Weighted Average Shares and O.P.
Units Outstanding 31,744,396 74.3% 18,209,542 22,693,026
----------------- ----------------- ----------------- -----------------
Net Income per Share $ 0.35 -21.5% $ 0.45 $ 9.54
----------------- ----------------- ----------------- -----------------
FFO per Share $ 0.83 -3.4% $ 0.85 $ 2.96
----------------- ----------------- ----------------- -----------------
FUNDS AVAILABLE FOR DISTRIBUTION
FFO $ 26,191,975 68.4% $ 15,551,814 $ 67,069,633
Adjustments:
Straight-lining of base rents (1,055,305) 254.3% (297,854) (2,805,547)
Recurring capital expenditures (442,327) -30.6% (637,090) (1,931,941)
Amortization of debt premium (2,933,065) N/A - (5,940,175)
----------------- ----------------- ----------------- -----------------
FAD $ 21,761,278 48.9% $ 14,616,870 $ 56,391,970
----------------- ----------------- ----------------- -----------------
Weighted Average Shares and O.P.
Units Outstanding 31,744,396 74.3% 18,209,542 22,693,026
----------------- ----------------- ----------------- -----------------
FAD per Share $ 0.69 -14.6% $ 0.80 $ 2.48
----------------- ----------------- ----------------- -----------------
PAYOUT RATIOS
----------------- ----------------- ----------------- -----------------
Dividend per Common Share $ 0.54 5.9% $ 0.51 $ 2.07
----------------- ----------------- ----------------- -----------------
Payout Ratio of Net Income 154.29% 39.8% 114.44% 21.70%
----------------- ----------------- ----------------- -----------------
Payout Ratio of FFO 65.45% 5.7% 59.72% 70.04%
----------------- ----------------- ----------------- -----------------
Payout Ratio of FAD 78.77% 15.2% 63.54% 83.30%
----------------- ----------------- ----------------- -----------------
CY 12/31/02
FUNDS FROM OPERATIONS (1) % Change (12 months)
----------------- -----------------
Net Income 727.9% $ 23,677,976
Dividends on preferred shares -
Net Income allocable to common
shares 721.5% $ 23,677,976
Minority Interest in operating
partnership-operations 161.2% 1,262,556
Minority Interest in operating
partnership-discontinued
operations N/A 1,352,412
(Gain) loss on sales of interests
in real estate N/A -
Gain (losses) on disposition of
discontinued operations N/A (4,085,164)
Depreciation & amortization: (2)
Wholly owned and consolidated
partnerships 193.9% 12,708,936
Unconsolidated partnerships
and joint ventures -31.9% 7,446,295
Discontinued operations N/A 8,726,812
Financing repayment fee 77,436
----------------- -----------------
FFO 31.1% $ 51,167,259
----------------- -----------------
Weighted Average Shares and O.P.
Units Outstanding 26.3% 17,967,106
----------------- -----------------
Net Income per Share 551.2% $ 1.47
----------------- -----------------
FFO per Share 3.8% $ 2.85
----------------- -----------------
FUNDS AVAILABLE FOR DISTRIBUTION
FFO 31.1% $ 51,167,259
Adjustments:
Straight-lining of base rents 169.3% (1,041,694)
Recurring capital expenditures -33.5% (2,903,637)
Amortization of debt premium N/A -
----------------- -----------------
FAD 19.4% $ 47,221,928
----------------- -----------------
Weighted Average Shares and O.P.
Units Outstanding 26.3% 17,967,106
----------------- -----------------
FAD per Share -5.5% $ 2.63
----------------- -----------------
PAYOUT RATIOS
----------------- -----------------
Dividend per Common Share 1.5% $ 2.04
----------------- -----------------
Payout Ratio of Net Income -117.6% 139.25%
----------------- -----------------
Payout Ratio of FFO -1.6% 71.63%
----------------- -----------------
Payout Ratio of FAD 5.7% 77.62%
----------------- -----------------
(1) Certain prior period amounts have been reclassified to conform with the
current period presentation.
(2) Excludes depreciation of non-real estate assets and amortization of
deferred financing costs. These amounts were previously included in the
depreciation amounts and deducted in a separate line.
PAGE 15
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
KEY RATIOS
Q4: 12/31/2003 Q4: 12/31/2002
------------------------- -------------------------
Coverage Ratio
Interest Coverage Ratio (EBITDA/ Interest Expense) 2.70 2.42
------------------------- -------------------------
Leverage Ratios (1)
Debt / Total Market Capitalization 50.3% 56.3%
------------------------- -------------------------
Operating Ratios
NOI/Real Estate Revenues 64.1% 66.1%
------------------------- -------------------------
Return on Investment Ratios (1)
Total FFO/Equity Market Capitalization 1.7% 3.2%
FFO multiple (Closing share price / Annualized FFO per
share for quarter) 11.00 7.61
NOI/Total Market Capitalization at Period End 1.9% 2.6%
NOI/Investment in Real Estate at Period End 2.3% 3.0%
------------------------- -------------------------
Payout Ratios
FFO Payout Ratio (Dividend/FFO) per Share 65.4% 59.7%
FAD Payout Ratio (Dividend/FAD) per Share 78.8% 63.5%
------------------------- -------------------------
(1) Calculations based on closing stock price at the end of the quarter.
(2) Calculations were adjusted for discontinued operations.
The calculation of these ratios includes wholly owned properties, PREIT's
proportional share of joint venture properties and properties classified as
held for sale.
NOTE: Reconcilation to GAAP is on pages 38 to 43.
PAGE 16
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
DEBT SCHEDULE of WHOLLY OWNED PROPERTIES
PREIT's Total PREIT's PREIT's PREIT's
Ownership Investment to Investment to Accumulated Depreciated
Property Name Interest Date Date (1) Depreciation Costs
- -----------------------------------------------------------------------------------------------------------------------------
Retail Properties
Beaver Valley Mall 100% $ 54,578,235 $ 54,578,235 $ 2,437,789 $ 52,140,446
Bradley Square 100% 11,213,758 11,213,758 - 11,213,758
Capital City (2) 89% 77,579,833 77,579,833 258,708 77,321,125
Chambersburg Mall (2)(3) 89% 36,181,955 36,181,955 127,892 36,054,063
Cherry Hill Mall (4)(5)(6)(9) 73% 203,720,555 185,128,752 2,912,174 182,216,578
Christiana Power I 100% 35,077,062 35,077,062 4,457,743 30,619,319
Creekview 100% 18,931,825 18,931,825 1,929,230 17,002,595
Crest Plaza Shopping Center 100% 16,255,843 16,255,843 988,439 15,267,404
Crossroads Mall 100% 31,939,814 31,939,814 123,745 31,816,069
Dartmouth Mall 100% 51,169,619 51,169,619 9,159,934 42,009,685
Echelon Mall (9) 100% 16,501,342 16,501,342 301,797 16,199,545
Exton Square Mall (6)(9) 100% 137,036,562 137,036,562 2,440,321 134,596,241
Festival at Exton 100% 18,983,896 18,983,896 2,141,362 16,842,534
Francis Scott Key Mall (3) 100% 65,558,196 65,558,196 221,580 65,336,616
Gallery at Market East (9) 100% 48,283,008 48,283,008 811,514 47,471,494
Jacksonville Mall 100% 57,605,971 57,605,971 175,241 57,430,730
Logan Valley Mall (2)(3) 89% 80,600,905 80,600,905 322,793 80,278,112
Lycoming Mall (2)(3) 89% 54,917,377 54,917,377 109,311 54,808,066
Magnolia Mall 100% 57,226,327 57,226,327 7,500,372 49,725,955
Martinsburg Mall (3) 100% 18,535,712 18,535,712 - 18,535,712
Moorestown Mall (9) 100% 74,795,733 74,795,733 1,399,663 73,396,070
Mount Berry Square 100% 22,467,229 22,467,229 - 22,467,229
New River Valley Mall (3) 100% 32,149,764 32,149,764 116,130 32,033,634
Nittany Mall (2)(3) 89% 44,641,709 44,641,709 158,119 44,483,590
North Hanover Mall (2)(3) 89% 26,930,843 26,930,843 100,336 26,830,507
Northeast Tower Center 100% 29,248,410 29,248,410 2,650,581 26,597,829
Northeast Tower Center-Home Depot 100% 13,578,891 13,578,891 1,289,995 12,288,896
Palmer Park Mall 100% 37,963,335 37,963,335 5,731,352 32,231,983
Patrick Henry Mall (3) 100% 96,649,678 96,649,678 279,046 96,370,632
Paxton Towne Centre 100% 53,408,117 53,408,117 4,315,182 49,092,935
Phillipsburg Mall (3) 100% 48,535,563 48,535,563 165,027 48,370,536
Plymouth Meeting Mall (9) 100% 78,198,819 78,198,819 1,140,134 77,058,685
Prince Georges Plaza (6) 100% 83,301,490 83,301,490 10,530,524 72,770,966
Schuylkill Mall (2) 89% 15,038,157 15,038,157 - 15,038,157
Shenango Valley Mall (2) 89% 15,835,339 15,835,339 - 15,835,339
South Blanding Village 100% 9,502,950 9,502,950 3,190,825 6,312,125
South Mall (2)(3) 89% 30,251,157 30,251,157 108,674 30,142,483
The Commons at Magnolia 100% 9,884,213 9,884,213 931,450 8,952,763
Uniontown Mall (2)(3) 89% 28,170,896 28,170,896 118,409 28,052,487
Valley Mall 100% 81,308,933 81,308,933 285,406 81,023,527
Valley View Mall 100% 50,181,220 50,181,220 175,223 50,005,997
Viewmont Mall (2)(3) 89% 70,531,123 70,531,123 232,454 70,298,669
Washington Crown Center (2) 89% 49,137,405 49,137,405 171,678 48,965,727
West Manchester Mall (2)(3) 89% 35,797,275 35,797,275 - 35,797,275
Willow Grove Park (6) 100% 166,851,686 166,851,686 6,427,698 160,423,988
Wiregrass Mall (8) 100% 39,775,387 39,775,387 154,310 39,621,077
Wyoming Mall (2)(3) 89% 85,543,410 85,543,410 247,334 85,296,076
- -----------------------------------------------------------------------------------------------------------------------------
Sub-Total Retail Properties $ 2,421,576,527 $2,402,984,724 $ 76,339,495 $ 2,326,645,229
=============================================================================================================================
Industrial Properties
"ARA Services, Allentown, PA 100% $ 84,610 $ 84,610 $ 81,610 $ 3,000
"ARA Services, Pennsauken, NJ 100% 210,473 210,473 168,433 42,040
Interstate Container Corporation 100% 1,802,271 1,802,271 1,479,760 322,511
Sears Roebuck & Co. 100% 406,857 406,857 346,968 59,889
- -----------------------------------------------------------------------------------------------------------------------------
Sub-Total Industrial and Land
Properties $ 2,504,211 $ 2,504,211 $ 2,076,771 $ 427,440
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL for WHOLLY OWNED PROPERTIES $ 2,424,080,738 $2,405,488,935 $ 78,416,266 $ 2,327,072,669
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL for PARTNERSHIPS and JOINT
VENTURES $ 270,845,771 $ 134,613,285 $ 31,652,085 $ 102,961,200
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL for WHOLLY OWNED and JV
PROPERTIES $ 2,694,926,509 $2,540,102,220 $ 110,068,351 $ 2,430,033,869
=============================================================================================================================
PREIT's Share
of O/S
Mortgage Debt PREIT's Share Current Annual
and Mortgage PREIT's Share of Mortgage Mortgages Mortgage Debt
Property Name Debt Premuim of Mortgage Debt Premium Interest Rate Service
- -----------------------------------------------------------------------------------------------------------------------------
Retail Properties
Beaver Valley Mall $ 47,316,181 $ 47,316,181 $ - 7.36% $ 3,972,402
Bradley Square - - - 0.00%
Capital City (2) 60,281,074 53,250,000 7,031,074 7.61% 4,602,529
Chambersburg Mall (2)(3) 21,019,161 19,058,962 1,960,199 7.43% 1,762,666
Cherry Hill Mall (4)(5)(6)(9) 79,401,313 72,805,434 6,595,879 10.60% 9,132,792
59,790,866 59,790,866 - 5.00% 2,789,582
Christiana Power I - - - 0.00% -
Creekview - - - 0.00% -
Crest Plaza Shopping Center - - - 0.00% -
Crossroads Mall 14,466,479 13,573,290 893,189 7.39% 1,191,103
Dartmouth Mall 69,514,500 69,514,500 - 4.95% 4,483,668
Echelon Mall (9) - - - 0.00%
Exton Square Mall (6)(9) 107,904,587 99,735,643 8,168,944 6.95% 8,102,242
Festival at Exton - - - 0.00% -
Francis Scott Key Mall (3) 36,783,532 33,353,184 3,430,348 7.43% 3,084,665
Gallery at Market East (9) - - - 0.00%
Jacksonville Mall - - - 0.00%
Logan Valley Mall (2)(3) 59,904,609 54,318,042 5,586,567 7.43% 5,023,597
Lycoming Mall (2)(3) 36,783,532 33,353,184 3,430,348 7.43% 3,084,664
Magnolia Mall 20,804,348 20,804,348 - 8.20% 2,597,726
Martinsburg Mall (3) 18,391,766 16,676,592 1,715,174 7.43% 1,542,332
Moorestown Mall (9) 63,733,399 63,733,399 - 4.95% 4,115,367
Mount Berry Square - - - 0.00%
New River Valley Mall (3) 17,866,287 16,200,118 1,666,169 7.43% 1,498,266
Nittany Mall (2)(3) 31,528,742 28,588,444 2,940,298 7.43% 2,643,998
North Hanover Mall (2)(3) 21,019,161 19,058,962 1,960,199 7.43% 1,762,666
Northeast Tower Center - - - 0.00% -
Northeast Tower Center-Home Depot 12,500,000 12,500,000 - 7.40% 925,000
Palmer Park Mall 18,213,653 18,213,653 - 6.77% 1,661,220
Patrick Henry Mall (3) 53,073,382 48,123,880 4,949,502 7.43% 4,450,730
Paxton Towne Centre - - - 0.00% -
Phillipsburg Mall (3) 31,528,742 28,588,444 2,940,298 7.43% 2,643,998
Plymouth Meeting Mall (9) - - - 0.00%
Prince Georges Plaza (6) 43,864,194 41,805,392 2,058,802 8.70% 4,134,937
Schuylkill Mall (2) 18,732,516 18,732,516 - 7.25% 3,315,300
Shenango Valley Mall (2) - - - 0.00%
South Blanding Village - - - 0.00% -
South Mall (2)(3) 15,764,370 14,294,222 1,470,148 7.43% 1,321,999
The Commons at Magnolia - - - 0.00% -
Uniontown Mall (2)(3) 25,222,993 22,870,755 2,352,238 7.43% 2,115,199
Valley Mall - - - 0.00%
Valley View Mall 37,701,026 37,000,000 701,026 6.15% 2,275,500
Viewmont Mall (2)(3) 31,528,742 28,588,444 2,940,298 7.43% 2,643,998
Washington Crown Center (2) - - - 0.00%
West Manchester Mall (2)(3) 28,375,868 25,729,599 2,646,269 7.43% 2,379,598
Willow Grove Park (6) 113,761,247 109,296,539 4,464,708 8.39% 10,046,933
Wiregrass Mall (8) 30,000,000 30,000,000 - 3.12% 967,200
Wyoming Mall (2)(3) 59,904,609 54,318,043 5,586,566 7.43% 5,023,597
- -----------------------------------------------------------------------------------------------------------------------------
Sub-Total Retail Properties $ 1,286,680,879 $ 1,211,192,636 $ 75,488,243 7.18% $ 105,295,475
=============================================================================================================================
Industrial Properties
"ARA Services, Allentown, PA $ - $ - 0.00% $ -
"ARA Services, Pennsauken, NJ - - 0.00% -
Interstate Container Corporation - - 0.00% -
Sears Roebuck & Co. - - 0.00% -
- -----------------------------------------------------------------------------------------------------------------------------
Sub-Total Industrial and Land
Properties $ - $ - 0.00% $ -
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL for WHOLLY OWNED PROPERTIES $ 1,286,680,879 $ 1,211,192,636 $ 75,488,243 7.18% $ 105,295,475
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL for PARTNERSHIPS and JOINT
VENTURES $ 109,581,659 $ 109,581,659 $ - 7.47% $ 10,205,588
- -----------------------------------------------------------------------------------------------------------------------------
CORPORATE $ -
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL for WHOLLY OWNED and JV
PROPERTIES $ 1,396,262,538 $ 1,320,774,295 $ 75,488,243 7.20% $ 115,501,063
=============================================================================================================================
Mortgage
Balance at Date of
Property Name Maturity Maturity Notes
- ----------------------------------------------------------------------------------------
Retail Properties
Beaver Valley Mall $ 42,265,601 2012
Bradley Square
Capital City (2) 47,215,150 2012
Chambersburg Mall (2)(3) 17,199,298 2008
Cherry Hill Mall (4)(5)(6)(9) 70,237,549 2005
58,148,407 2005
Christiana Power I -
Creekview -
Crest Plaza Shopping Center -
Crossroads Mall 12,646,534 2008
Dartmouth Mall 57,594,279 2013
Echelon Mall (9)
Exton Square Mall (6)(9) 93,034,212 2008
Festival at Exton -
Francis Scott Key Mall (3) 30,098,771 2008
Gallery at Market East (9)
Jacksonville Mall
Logan Valley Mall (2)(3) 49,017,998 2008
Lycoming Mall (2)(3) 30,098,771 2008
Magnolia Mall 17,782,882 2007
Martinsburg Mall (3) 15,049,385 2008
Moorestown Mall (9) 52,863,321 2013
Mount Berry Square
New River Valley Mall (3) 14,619,403 2008
Nittany Mall (2)(3) 25,798,946 2008
North Hanover Mall (2)(3) 17,199,298 2008
Northeast Tower Center -
Northeast Tower Center-Home Depot 12,500,000 2005
Palmer Park Mall 15,674,394 2009
Patrick Henry Mall (3) 43,428,226 2008
Paxton Towne Centre -
Phillipsburg Mall (3) 25,798,946 2008
Plymouth Meeting Mall (9)
Prince Georges Plaza (6) 39,986,536 2007
Schuylkill Mall (2) 7,442,925 2008
Shenango Valley Mall (2)
South Blanding Village -
South Mall (2)(3) 12,899,473 2008
The Commons at Magnolia -
Uniontown Mall (2)(3) 20,639,157 2008
Valley Mall
Valley View Mall 34,589,149 2009
Viewmont Mall (2)(3) 25,798,946 2008
Washington Crown Center (2)
West Manchester Mall (2)(3) 23,219,052 2008
Willow Grove Park (6) 107,307,726 2006
Wiregrass Mall (8) 30,000,000 2005
Wyoming Mall (2)(3) 49,017,998 2008
- ----------------------------------------------------------------------------------------
Sub-Total Retail Properties $ 1,099,172,333
========================================================================================
Industrial Properties
"ARA Services, Allentown, PA $ -
"ARA Services, Pennsauken, NJ -
Interstate Container Corporation -
Sears Roebuck & Co. -
- ----------------------------------------------------------------------------------------
Sub-Total Industrial and Land
Properties $ -
- ----------------------------------------------------------------------------------------
TOTAL for WHOLLY OWNED PROPERTIES $ 1,099,172,333
- ----------------------------------------------------------------------------------------
TOTAL for PARTNERSHIPS and JOINT
VENTURES $ 93,753,089
- ----------------------------------------------------------------------------------------
CORPORATE
- ----------------------------------------------------------------------------------------
TOTAL for WHOLLY OWNED and JV
PROPERTIES $ 1,192,925,422
========================================================================================
(1) Includes development and CIP costs.
(2) PREIT has an 89% ownership interest and a 99% economic interest in these
properties. These properties are consolidated for financial reporting
purposes.
(3) Mortgage Debt represents properties' allocated portion of the REMIC provided
by General Electric Capital Corporation.
(4) 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.
(5) 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.
(6) Development costs are included in the balance sheet under other assets.
(7) Includes mark to market of debt.
(8) Term does not include two 12 month extensions.
(9) Investment and debt balances have been modified from those previously
presented to reflect revised assumptions about the fair value of the assets
and liabilities acquired, and to reflect additional costs associated with
the acquisition of these properties.
NOTE: Reconciliation to GAAP is on pages 38 to 43.
PAGE 17
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
DEBT SCHEDULE of PARTNERSHIPS AND JOINT VENTURES
PREIT's Total PREIT's PREIT's PREIT's
Ownership Investment to Investment to Accumulated Depreciated
Property Name Interest Date Date (1) Depreciation Costs
-------------- -------------- -------------- -------------- --------------
Retail Properties
Court at Oxford Valley 50% $ 55,612,574 $ 27,806,287 $ 4,222,051 $ 23,584,236
Laurel Mall 40% 31,377,328 12,550,931 4,638,360 7,912,571
Lehigh Valley Mall 50% 29,735,754 14,867,877 9,385,967 5,481,910
Metroplex Shopping Center (Blue
Route) 50% 82,432,626 41,216,313 3,619,371 37,596,942
Red Rose Commons 50% 20,395,288 10,197,644 1,369,747 8,827,897
Rio Mall 60% 8,219,542 4,931,725 2,372,269 2,559,456
Springfield Park I&II 50% 13,276,202 6,638,101 581,213 6,056,888
Whitehall Mall 50% 29,796,458 14,898,229 5,463,107 9,435,122
----------------------------------------------------------------------------------------
Sub-Total Retail Properties $ 270,845,771 $ 133,107,107 $ 31,652,085 $ 101,455,022
----------------------------------------------------------------------------------------
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 $ 270,845,771 $ 134,613,285 $ 31,652,085 $ 102,961,200
========================================================================================
PREIT's Share
of O/S
Mortgage Debt PREIT's Share Current Annual
and Mortgage PREIT's Share of Mortgage Mortgages Mortgage Debt
Property Name Debt Premuim of Mortgage Debt Premium Interest Rate Service
-------------- -------------- -------------- -------------- --------------
Retail Properties
Court at Oxford Valley $ 21,827,846 $ 21,827,846 $ - 8.02% $ 2,319,426
Laurel Mall 9,200,000 9,200,000 - 6.00% 661,904
Lehigh Valley Mall 23,676,622 23,676,622 - 7.90% 2,479,260
Metroplex Shopping Center (Blue
Route) 32,132,630 32,132,630 - 7.25% 2,680,953
Red Rose Commons 13,820,806 13,820,806 - 7.66% 1,220,048
Rio Mall - - - 0.00% -
Springfield Park I&II 1,849,574 1,849,574 - 7.79% 202,561
Whitehall Mall 7,074,181 7,074,181 - 6.77% 641,436
----------------------------------------------------------------------------------------
Sub-Total Retail Properties $ 109,581,659 $ 109,581,659 $ - 7.47% $ 10,205,588
----------------------------------------------------------------------------------------
Construction in Progress/
Development
Pavilion at Market East - $ - 0.00% -
----------------------------------------------------------------------------------------
Sub-Total Properties Under
Development $ - $ - $ - $ - $ -
----------------------------------------------------------------------------------------
TOTAL for PARTNERSHIPS and JOINT
VENTURES $ 109,581,659 $ 109,581,659 $ - 7.47% $ 10,205,588
========================================================================================
Mortgage
Balance at Date of
Property Name Maturity Maturity Notes
-------------- -------------- --------------
Retail Properties
Court at Oxford Valley $ 15,966,965 2011
Laurel Mall 7,819,521 2013
Lehigh Valley Mall 21,750,440 2006
Metroplex Shopping Center (Blue
Route) 28,250,000 2011
Red Rose Commons 12,425,422 2009
Rio Mall -
Springfield Park I&II 1,411,804 2010
Whitehall Mall 6,128,937 2008
---------------------------------------------------
Sub-Total Retail Properties $ 93,753,089
---------------------------------------------------
Construction in Progress/
Development
Pavilion at Market East - Construction in Progress
---------------------------------------------------
Sub-Total Properties Under
Development $ -
---------------------------------------------------
TOTAL for PARTNERSHIPS and JOINT
VENTURES $ 93,753,089
===================================================
(1) Includes development and CIP costs.
NOTE: Reconciliation to GAAP is on pages 38 to 43.
PAGE 18
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
DEBT ANALYSIS
[PREIT AND PEI GRAPHICS OMITTED]
Outstanding Debt
% of Total % of Total
Fixed Rate Indebtedness Floating Rate Indebtedness Total
Wholly Owned
Mortgage Notes Payable $ 1,256,680,879 80.2% $ 30,000,000 1.9% $ 1,286,680,879
Revolving Line of Credit - 0.0% - 0.0% -
Acquisition Term Loan & Unsecured
Line of Credit 0.0% 0.0% -
-------------- -------------- --------------
SUB-TOTAL 1,256,680,879 80.2% 30,000,000 1.9% 1,286,680,879
Partnerships and Joint Ventures
(at PREIT's share)
Mortgage Notes Payable 109,581,659 7.0% - 0.0% 109,581,659
Revolving Line of Credit - 0.0% - 0.0% -
Construction loans payable - 0.0% - 0.0% -
-------------- -------------- --------------
SUB-TOTAL 109,581,659 7.0% - 0.0% 109,581,659
Corporate
Revolving Line of Credit 0.0% 170,000,000 10.9% 170,000,000
-------------- -------------- --------------
SUB-TOTAL 0.0% 170,000,000 10.9% 170,000,000
TOTAL OUTSTANDING DEBT 1,366,262,538 200,000,000 1,566,262,538
SWAP - - -
-------------- -------------- --------------
TOTAL DEBT AFTER HEDGE $ 1,366,262,538 87.2% $ 200,000,000 12.8% $ 1,566,262,538
============== ============== ==============
% of Total
Indebtedness
Wholly Owned
Mortgage Notes Payable 82.1%
Revolving Line of Credit 0.0%
Acquisition Term Loan & Unsecured
Line of Credit 0.0%
SUB-TOTAL 82.1%
Partnerships and Joint Ventures
(at PREIT's share)
Mortgage Notes Payable 7.0%
Revolving Line of Credit 0.0% [OUTSTANDING PRINCIPAL BALANCE CHART OMITTED]
Construction loans payable 0.0%
SUB-TOTAL 7.0%
Corporate
Revolving Line of Credit 10.9%
SUB-TOTAL 10.9%
TOTAL OUTSTANDING DEBT
SWAP
TOTAL DEBT AFTER HEDGE 100.0%
Weighted Average Interest Rates
Weighted Average
Principal Balance Interest Rate
Fixed Rate Debt $ 1,290,774,295 7.20%
Mortgage Debt Premium $ 75,488,243
Floating Rate Debt 200,000,000 3.12%
----------------------------------------------
TOTAL $ 1,566,262,538 6.65%
==============================================
Interest Rate Hedging Instruments
Interest Rate Expiration
Nominal Amount Limit Date Nominal Amount
--------------------------------------------------- --------------
CAP None SWAP None
Fixed Rate in Floating Rate Expiration
Agreement in Agreement Date
---------------------------------------------------
CAP
Mortgage/Construction Maturity Schedule (1)
Mortgage Cumulative
Balance at % of Debt % of Debt
Year Maturity Expiring Expiring
----------------------------------------------------
2003 - 0.0% 0.0%
2004 - 0.0% 0.0%
2005 170,885,956 14.3% 14.3%
2006 129,058,166 10.8% 25.1%
2007 57,769,418 4.8% 30.0%
2008 519,136,276 43.5% 73.5%
2009 62,688,965 5.3% 78.8%
2010 1,411,804 0.1% 78.9%
2011 28,250,000 2.4% 81.2%
2012 - 0.0% 81.2%
Thereafter 223,724,838 18.8% 100.0%
---------------------------------
$1,192,925,422 100.0%
---------------------------------
(1) The average period to mortgage maturity is 5.25 years.
NOTE: Reconciliation to GAAP is on pages 38 to 43.
Average Debt Balance
Mortgage Debt
(1) &
Construction Line of Credit
Loans & Bank Loans REMIC TOTAL
---------------------------------------------------------------------
Beginning Balance 9/30/2003 $ 739,061,360 $ - $ - $ 739,061,452
Additional Markup of Debt on Cherry
Hill and Exton Square 9/30/2003 2,036,907 2,036,907
Merger with Crown 11/20/2003 162,002,740 170,000,000 443,788,249 775,790,989
Markup of Debt 11/20/2003 8,728,333 46,413,068 55,141,401
Laurel Mall-Refinancing 11/20/2003 (8,450,317) (8,450,317)
Laurel Mall-Refinancing 11/20/2003 9,200,000 9,200,000
Debt Amortization (2) 12/31/2003 (5,030,953) (1,486,849) (6,517,802)
---------------------------------------------------------------------
Ending Balance 12/31/2003 $ 907,548,070 $ 170,000,000 $ 488,714,468 $ 1,566,262,538
Weighted Average Balance $ 817,519,039 $ 75,760,870 $ 218,459,283 $ 1,111,739,191
---------------------------------------------------------------------
(1) Includes mark to market of debt.
(2) Includes the amortization of debt premium.
PAGE 19
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
DEBT RATIOS(1)
[Graphic [Graphic
Omitted] Omitted]
31/12/2003 31/12/2002
---------------------------------
Total Liabilities to Gross Asset Value
Ratio of Total Liabilities(2) to Gross
Asset Value(3) less than or equal to
0.65 to 1.00.
Total Liabilities $ 1,579,303,539 $ 656,324,733
Gross Asset Value $ 3,076,545,743 $ 1,204,372,851
Ratio 51.33% 54.50%
---------------------------------
EBITDA to Interest Expense
Ratio of EBITDA(4) to Interest
Expense(5) greater than or equal to
1.90 to 1.00.
EBITDA $ 121,299,465 $ 97,213,497
Interest Expense $ 57,969,142 $ 43,668,158
Ratio 2.09 2.23
---------------------------------
Adjusted EBITDA to Fixed Charges
Ratio of Adjusted EBITDA(6) to Fixed
Charges(7) greater than or equal to
1.50 to 1.00.
Adjusted EBITDA $ 118,387,620 $ 94,666,909
Fixed Charges $ 69,089,099 $ 51,180,102
Ratio 1.71 1.85
---------------------------------
Secured Indebtedness to Gross Asset Value
Ratio of Secured Indebtedness(8) to
Gross Asset Value(3) less than or
equal to 0.60 to 1.00.
Secured Indebtedness $ 1,320,774,295
Gross Asset Value $ 3,076,545,743
Ratio 42.93% N/A
---------------------------------
(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 November 20, 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) Adjusted NOI for all Properties
of PREIT, its subsidiaries and unconsolidated affiliates (excluding adjusted
NOI for development and major redevelopment Property) for the previous
rolling four quarter period, capitalized at 9.00%, plus (ii) cash and cash
equivalents plus (iii) all accounts receivable net of reserves plus (iv)
book value of Propery upon which construction is in progress and land held
for development plus (v) development costs plus (vi) adjusted NOI for major
redevelopment Property for the recent fiscal quarter (excluding those
acquired or disposed of during such quarter) multiplied by 4 and capitalized
at 9.00% plus (vii) redevelopment and predevelopment costs plus (viii) the
purchase price of Property purchased in the last 2 fiscal quarters
(excluding Crown properties) plus (ix) greater of PREIT's (a) ownership
share or (b) recourse share of book value of construction in progress of
unconsolidated affiliates plus (x) purchase price of Property by PREIT and
its subsidiaries subject to purchase obligations, purchase obligations,
forward commitments and unfunded obligations.
(4) 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.
(5) Interest Expense defined as: All paid, accrued or capitalized interest
expense excluding capitalized interest funded from construction loans plus
the greater of (a) ownership share or (b) recourse share of all paid,
accrued or capitalized interest expense of unconsolidated affliliates.
(6) Adjusted EBITDA defined as: EBITDA plus ground rent payments minus the
Reserve for Replacements for all Properties.
(7) Fixed Charges defined as: Interest Expense plus regularly scheduled
principal payments on Indebtedness other than any balloon, bullet or similar
principal payment on any Indebtedness plus preferred dividends payments plus
ground rent payments.
(8) Secured Indebtedness defined as: (a) Aggregated principal amount of all
Indebtedness that is secured by any Lien and (b) Indebtedness under a
Guaranty of the Secured Indebtedness of another.
PAGE 20
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
PORTFOLIO SUMMARY-RETAIL
(Sorted by State)
Property Management Property
Retail Properties (1) City State Subtype Status Status
- --------------------------------- -------------- -------------- -------------- -------------- --------------
Wiregrass Commons Dothan AL Enclosed Mall PREIT New
Christiana Power Center I Newark DE Power Center PREIT Existing
South Blanding Village Jacksonville FL Strip Center PREIT Existing
Mount Berry Square Rome GA Enclosed Mall PREIT New
Dartmouth Mall Dartmouth MA Enclosed Mall PREIT Existing
Francis Scott Key (2) Frederick MD Enclosed Mall PREIT New
Valley Mall Hagerstown MD Enclosed Mall PREIT New
Prince Georges Plaza Hyattsville MD Enclosed Mall PREIT Redevelopment
Jacksonville Mall Jacksonville NC Enclosed Mall PREIT New
Cherry Hill Mall Cherry Hill NJ Enclosed Mall PREIT New
Moorestown Mall Moorestown NJ Enclosed Mall PREIT New
Phillipsburg Mall Phillipsburg NJ Enclosed Mall PREIT New
Rio Mall Rio Grande NJ Strip Center Third Party Existing
Echelon Mall Voorhees NJ Enclosed Mall PREIT New
Crest Plaza Shopping Center Allentown PA Strip Center PREIT New
Lehigh Valley Mall Allentown PA Enclosed Mall Third Party Existing
South Mall (2) Allentown PA Enclosed Mall PREIT New
Whitehall Mall Allentown PA Power Center Third Party Existing
Logan Valley Mall (2) Altoona PA Enclosed Mall PREIT New
Capital City Mall (2) Camp Hill PA Enclosed Mall PREIT New
Ownership Year Built/ Years Since Owned GLA
Retail Properties (1) Interest Date Acquired Last Renovated Renovation (anchors)
- --------------------------------- -------------- -------------- -------------- -------------- --------------
Wiregrass Commons 100% 2003 1986/1999 4 -
Christiana Power Center I 100% 1998 1998 5 190,814
South Blanding Village 100% 1988/1990 1986 17 73,921
Mount Berry Square 100% 2003 1991 12 269,257
Dartmouth Mall 100% 1997 1971/2000 3 301,583
Francis Scott Key (2) 89% 2003 1978/1991 12 291,620
Valley Mall 100% 2003 1974/1999 4 294,348
Prince Georges Plaza 100% 1998 1959/1990 13 404,462
Jacksonville Mall 100% 2003 1981/1998 5 242,115
Cherry Hill Mall 73% 2003 1961/1990 13 -
Moorestown Mall 100% 2003 1963/2000 3 408,356
Phillipsburg Mall 100% 2003 1989/2003 0 306,159
Rio Mall 60% 1973 1973/1999 4 136,066
Echelon Mall 100% 2003 1970/1998 5 310,840
Crest Plaza Shopping Center 100% 1964 1959/1991 12 45,000
Lehigh Valley Mall 50% 1973 1977/1996 7 212,000
South Mall (2) 89% 2003 1975/1992 11 188,858
Whitehall Mall 50% 1964 1964/1998 5 294,635
Logan Valley Mall (2) 89% 2003 1960/1997 6 454,387
Capital City Mall (2) 89% 2003 1974/1998 5 204,301
Owned GLA TOTAL Owned TOTAL Property
Retail Properties (1) (non-anchors) GLA Space Not Owned (Name/GLA) GLA
- --------------------------------- -------------- -------------- --------------------------------- --------------
Wiregrass Commons 231,485 231,485 Dillard's 403,163 634,648
JC Penney
McRaes
Parisian
Christiana Power Center I 111,595 302,409 - 302,409
South Blanding Village 32,736 106,657 - 106,657
Mount Berry Square 208,802 478,059 - 478,059
Dartmouth Mall 315,109 616,692 - 616,692
Francis Scott Key (2) 278,628 570,248 Hecht's 139,333 709,581
Valley Mall 355,972 650,320 Sears 243,400 893,720
Hecht's
Prince Georges Plaza 348,491 752,953 - 752,953
Jacksonville Mall 232,327 474,442 - 474,442
Cherry Hill Mall 533,523 533,523 JC Penney 740,770 1,274,293
Macy's
Strawbridge's
Moorestown Mall 326,190 734,546 Lord & Taylor 321,200 1,055,746
Strawbridge's
Phillipsburg Mall 246,307 552,466 - 552,466
Rio Mall 29,517 165,583 - 165,583
Echelon Mall 433,594 744,434 Strawbridge's 396,783 1,141,217
Boscov's
Crest Plaza Shopping Center 60,992 105,992 Target 143,130 249,122
Lehigh Valley Mall 471,353 683,353 JC Penney 371,986 1,055,339
Strawbridge's
Firestone
South Mall (2) 214,677 403,535 403,535
Whitehall Mall 239,086 533,721 - 533,721
Logan Valley Mall (2) 327,247 781,634 - 781,634
Capital City Mall (2) 284,320 488,621 Hecht's 120,000 608,621
Majors / Lease
Retail Properties (1) Anchors Expiration
- --------------------------------- -------------- --------------
Wiregrass Commons Dillard's 1/31/37
JC Penney 5/30/14
McRaes 1/31/37
Parisian 1/31/37
Christiana Power Center I Costco 1/31/37
Dick's
Sporting Gds 11/30/13
South Blanding Village Staples 9/30/08
Food Lion 7/31/08
Mount Berry Square Belks 2/12/11
JC Penney 2/28/06
Profitts 1/31/12
Sears 2/8/11
Dartmouth Mall JC Penney 7/31/09
Sears 4/12/06
Francis Scott Key (2) Hecht's N/A
Sears 7/31/08
JC Penney 5/31/06
Value City 6/30/10
Valley Mall Sears 4/14/44
JC Penney 10/3/09
Bon-Ton 1/31/14
Hecht's 10/23/49
Prince Georges Plaza JC Penney 7/31/04
Hecht 10/31/08
Jacksonville Mall Belks 8/21/11
JC Penney 8/31/05
Sears 8/4/11
Cherry Hill Mall JC Penney N/A
Macy's N/A
Strawbridge's N/A
Moorestown Mall Boscov's 10/31/10
Lord & Taylor N/A
Sears 10/5/22
Strawbridge's N/A
Phillipsburg Mall Bon-Ton 1/31/10
JC Penney 3/31/10
Sears 4/30/09
Kohl's 1/31/25
Rio Mall K-Mart 7/31/18
Staples 10/31/04
Echelon Mall Boscov's N/A
Strawbridge's N/A
Crest Plaza Shopping Center Weis Market 1/31/07
Target N/A
Lehigh Valley Mall Macy's 7/31/12
JC Penney N/A
Strawbridge's N/A
South Mall (2) Bon-Ton 9/30/05
Stein Mart 10/31/06
Steve &
Barry's 1/31/11
Whitehall Mall Kohl's 3/9/07
Sears 9/18/11
Bed, Bath &
Beyond 1/31/10
Logan Valley Mall (2) JC Penney 6/30/17
Kaufmann's 1/31/05
Sears 10/31/16
Capital City Mall (2) JC Penney 11/30/10
Hecht's N/A
Sears 7/31/04
Property Management Property
Retail Properties (1) City State Subtype Status Status
- --------------------------------- -------------- -------------- -------------- -------------- --------------
Chambersburg Mall (2) Chambersburg PA Enclosed Mall PREIT New
Palmer Park Mall Easton PA Enclosed Mall PREIT Existing
Exton Square Mall Exton PA Enclosed Mall PREIT New
Festival at Exton Exton PA Strip Center PREIT Existing
Schuykill Mall (2) Frackville PA Enclosed Mall PREIT New
North Hanover Mall (2) Hanover PA Enclosed Mall PREIT New
Paxton Towne Center Harrisburg PA Power Center PREIT Existing
Laurel Mall Hazleton PA Enclosed Mall Third Party Existing
Shenango Valley Mall (2) Hermitage PA Enclosed Mall PREIT New
Red Rose Commons Lancaster PA Power Center Third Party Existing
The Court at Oxford Valley Langhorne PA Power Center Third Party Existing
Beaver Valley Mall Monaca PA Enclosed Mall PREIT New
Lycoming Mall (2) Pennsdale PA Enclosed Mall PREIT New
Northeast Tower Center Philadelphia PA Power Center PREIT Existing
The Gallery at Market East Philadelphia PA Enclosed Mall PREIT New
Plymouth Meeting Mall Plymouth Meeting PA Enclosed Mall PREIT New
Metroplex Shopping Center Plymouth Mtg. PA Power Center Third Party Existing
Viewmont Mall (2) Scranton PA Enclosed Mall PREIT New
Springfield Park I & II Springfield PA Strip Center PREIT Existing
Ownership Year Built/ Years Since Owned GLA
Retail Properties (1) Interest Date Acquired Last Renovated Renovation (anchors)
- --------------------------------- -------------- -------------- -------------- -------------- --------------
Chambersburg Mall (2) 89% 2003 1982 21 241,690
Palmer Park Mall 100% 1972 1972/1998 5 314,235
Exton Square Mall 100% 2003 1973/2000 3 440,301
Festival at Exton 100% 1998 1991 12 60,425
Schuykill Mall (2) 89% 2003 1980/1991 12 346,990
North Hanover Mall (2) 89% 2003 1967/1999 4 288,177
Paxton Towne Center 100% 1999 2001 2 151,627
Laurel Mall 40% 1988 1973/1995 8 350,323
Shenango Valley Mall (2) 89% 2003 1967/1997 6 400,099
Red Rose Commons 50% 1998 1998 5 -
The Court at Oxford Valley 50% 1997 1996 7 176,831
Beaver Valley Mall 100% 2002 1970/1991 12 511,267
Lycoming Mall (2) 89% 2003 1978/1990 13 321,441
Northeast Tower Center 100% 1998/1999 1997/1998 5 256,021
The Gallery at Market East 100% 2003 1977/1983 20 -
Plymouth Meeting Mall 100% 2003 1966/1999 4 345,000
Metroplex Shopping Center 50% 1999 2001 2 67,185
Viewmont Mall (2) 89% 2003 1968/1996 7 386,262
Springfield Park I & II 50% 1997/1998 1997/1998 5 83,539
Owned GLA TOTAL Owned TOTAL Property
Retail Properties (1) (non-anchors) GLA Space Not Owned (Name/GLA) GLA
- --------------------------------- -------------- -------------- --------------------------------- --------------
Chambersburg Mall (2) 212,918 454,608 - 454,608
Palmer Park Mall 131,937 446,172 - 446,172
Exton Square Mall 369,185 809,486 Strawbridge's 277,468 1,086,954
K-Mart
Festival at Exton 84,578 145,003 - 145,003
Schuykill Mall (2) 318,872 665,862 Bon-Ton 60,916 726,778
North Hanover Mall (2) 161,009 449,186 - 449,186
Paxton Towne Center 292,856 444,483 Target 273,058 717,541
Costco
Laurel Mall 206,783 557,106 - 557,106
Shenango Valley Mall (2) 128,006 528,105 528,105
Red Rose Commons 263,452 263,452 Weis Markets 199,590 463,042
Home Depot
The Court at Oxford Valley 280,031 456,862 Home Depot 247,624 704,486
BJ's
Beaver Valley Mall 446,709 957,976 Kaufmann's 204,770 1,162,746
Lycoming Mall (2) 341,250 662,691 Kaufmann's 120,000 782,691
Northeast Tower Center 182,521 438,542 Raymour & 38,678 477,220
Flanigan
The Gallery at Market East 192,552 192,552 - 192,552
Plymouth Meeting Mall 413,484 758,484 Strawbridge's 214,635 973,119
Metroplex Shopping Center 410,276 477,461 Target 300,729 778,190
Lowe's
Viewmont Mall (2) 237,404 623,666 Kaufmann's 120,000 743,666
Springfield Park I & II 43,292 126,831 Target 145,669 272,500
Majors / Lease
Retail Properties (1) Anchors Expiration
- --------------------------------- -------------- --------------
Chambersburg Mall (2) Bon-Ton 7/31/05
JC Penney 3/31/12
Sears 2/9/10
Value City 2/28/07
Palmer Park Mall Bon-Ton 7/25/14
Boscov's 10/31/18
Exton Square Mall Boscov's 10/31/19
JC Penney 5/31/20
K-Mart N/A
Sears 1/31/20
Strawbridge's N/A
Festival at Exton Sears Hardware 8/18/04
Clemen's 10/31/11
Schuykill Mall (2) K-Mart 10/31/11
Sears 10/31/05
Bon-Ton N/A
Black Diamond
Antiques 12/31/03
North Hanover Mall (2) Bon-Ton 1/31/06
JC Penney 1/31/06
Black Rose
Antiques N/A
Sears 11/30/09
Paxton Towne Center Target N/A
Kohl's 1/25/21
Weis 11/30/20
Costco N/A
Laurel Mall Boscov's 4/30/08
K-Mart 8/31/19
JC Penney 10/31/09
Shenango Valley Mall (2) Kaufmann's 9/30/06
JC Penney 1/31/09
Sears 11/30/05
Red Rose Commons Weis Markets N/A
Home Depot N/A
The Court at Oxford Valley Best Buy 12/31/11
Dick's
Sporting Gds 4/15/11
Linens N
Things 2/14/17
Beaver Valley Mall Boscov's 9/30/18
JC Penney 9/30/17
Sears 8/15/06
Kaufmann's N/A
Lycoming Mall (2) Bon-Ton 7/31/06
JC Penney 10/31/05
Kaufman's N/A
Sears 7/31/08
Value City 7/31/08
Northeast Tower Center Home Depot 9/30/05
Dick's
Sporting Gds 7/31/08
Petsmart 2/28/12
Wal-Mart 1/31/14
The Gallery at Market East K-Mart N/A
Strawbridge's N/A
Plymouth Meeting Mall AMC Theater 12/31/18
Boscov's 10/31/16
Strawbridge's N/A
Metroplex Shopping Center Target N/A
Lowe's N/A
Giant 2/28/21
Viewmont Mall (2) JC Penney 10/31/05
Sears 12/31/05
Kauffmann's N/A
Springfield Park I & II Target N/A
Bed, Bath & Beyond 1/31/09
LA Fitness 3/31/17
Property Management Property
Retail Properties (1) City State Subtype Status Status
- --------------------------------- -------------- -------------- -------------- -------------- --------------
Nittany Mall (2) State College PA Enclosed Mall PREIT New
Uniontown Mall (2) Uniontown PA Enclosed Mall PREIT New
Creekview Shopping Center Warrington PA Power Center PREIT Existing
Washington Crown Center (2) Washington PA Enclosed Mall PREIT New
Wyoming Valley Mall (2) Wilkes-Barre PA Enclosed Mall PREIT New
Willow Grove Park Willow Grove PA Enclosed Mall PREIT New
West Manchester Mall (2) York PA Enclosed Mall PREIT New
Magnolia Mall Florence SC Enclosed Mall PREIT Redevelopment
The Commons at Magnolia Florence SC Strip Center PREIT New
Bradley Square Cleveland TN Enclosed Mall PREIT New
New River Mall Christiansburg VA Enclosed Mall PREIT New
Patrick Henry Mall Newport News VA Enclosed Mall PREIT New
Valley View Mall LaCrosse WI Enclosed Mall PREIT New
Martinsburg Mall Martinsburg WV Enclosed Mall PREIT New
Crossroads Mall Mount Hope WV Enclosed Mall PREIT New
----------------------------------------------------------------------------------------
TOTAL WHOLLY OWNED
----------------------------------------------------------------------------------------
TOTAL JOINT VENTURE
----------------------------------------------------------------------------------------
TOTAL FOR Wholly Owned and Joint
Venture
----------------------------------------------------------------------------------------
AVERAGE FOR Wholly Owned and
Joint Venture
Ownership Year Built/ Years Since Owned GLA
Retail Properties (1) Interest Date Acquired Last Renovated Renovation (anchors)
- --------------------------------- -------------- -------------- -------------- -------------- --------------
Nittany Mall (2) 89% 2003 1968/1990 13 221,462
Uniontown Mall (2) 89% 2003 1972/1990 13 421,378
Creekview Shopping Center 100% 1999 2001 2 -
Washington Crown Center (2) 89% 2003 1969/1999 4 245,401
Wyoming Valley Mall (2) 89% 2003 1974/1995 8 592,110
Willow Grove Park 100% 2000/2003 1982/2001 2 225,000
West Manchester Mall (2) 89% 2003 1981/1995 8 285,515
Magnolia Mall 100% 1997 1979/1992 11 343,118
The Commons at Magnolia 100% 1999 1991/2002 1 51,574
Bradley Square 100% 2003 1991/2000 3 240,421
New River Mall 100% 2003 1988 15 240,306
Patrick Henry Mall 100% 2003 1988/1999 4 267,175
Valley View Mall 100% 2003 1980/2001 2 96,357
Martinsburg Mall 100% 2003 1991/1998 5 387,303
Crossroads Mall 100% 2003 1981 22 256,248
----------------------------------------------------------------------------------------
TOTAL WHOLLY OWNED 11,922,924
----------------------------------------------------------------------------------------
TOTAL JOINT VENTURE 1,320,579
----------------------------------------------------------------------------------------
TOTAL FOR Wholly Owned and Joint
Venture 13,243,503
----------------------------------------------------------------------------------------
AVERAGE FOR Wholly Owned and
Joint Venture
Owned GLA TOTAL Owned TOTAL Property
Retail Properties (1) (non-anchors) GLA Space Not Owned (Name/GLA) GLA
- --------------------------------- -------------- -------------- --------------------------------- --------------
Nittany Mall (2) 215,617 437,079 Kaufmann's 95,000 532,079
Uniontown Mall (2) 277,039 698,417 - 698,417
Creekview Shopping Center 136,086 136,086 Targets 288,916 425,002
Lowe'
Washington Crown Center (2) 288,097 533,498 Kaufmann's 140,095 673,593
Wyoming Valley Mall (2) 318,952 911,062 - 911,062
Willow Grove Park 339,508 564,508 Sears 641,861 1,206,369
Bloomingdale's
Strawbridge
West Manchester Mall (2) 296,641 582,156 Hecht's 119,768 701,924
Magnolia Mall 219,578 562,696 - 562,696
The Commons at Magnolia 52,870 104,444 Target 126,200 230,644
Bradley Square 140,885 381,306 - 381,306
New River Mall 187,849 428,155 - 428,155
Patrick Henry Mall 233,200 500,375 Hecht's 140,000 640,375
Valley View Mall 238,178 334,535 Herberges 254,596 589,131
Marshall
Fields
Sears
Martinsburg Mall 165,194 552,497 - 552,497
Crossroads Mall 193,835 450,083 - 450,083
----------------------------------------------------------------------------------------
TOTAL WHOLLY OWNED 11,358,805 23,281,729 5,623,740 28,905,469
----------------------------------------------------------------------------------------
TOTAL JOINT VENTURE 1,943,790 3,264,369 1,265,598 4,529,967
----------------------------------------------------------------------------------------
TOTAL FOR Wholly Owned and Joint
Venture 13,302,595 26,546,098 6,889,338 33,435,436
----------------------------------------------------------------------------------------
AVERAGE FOR Wholly Owned and
Joint Venture
Majors / Lease
Retail Properties (1) Anchors Expiration
- --------------------------------- -------------- --------------
Nittany Mall (2) Bon-Ton 1/31/08
JC Penney 7/31/05
Kaufmann's N/A
Sears 8/31/05
Uniontown Mall (2) Bon-Ton 1/31/06
JC Penney 10/31/05
Roomful
Express Furn. 3/26/05
Sears 2/25/08
Teletech
Customer Care 6/28/05
Value City 7/31/07
Creekview Shopping Center Target N/A
Lowe's N/A
Genuardi's 12/31/21
Washington Crown Center (2) Sears 8/17/09
Bon-Ton 1/31/10
Gander 7/24/13
Kaufmann's 7/31/97
Wyoming Valley Mall (2) Bon-Ton 1/31/07
JC Penney 1/31/07
Sears 8/1/06
Kaufmann's 1/31/07
Willow Grove Park Sears N/A
Bloomingdale's N/A
Strawbridge's N/A
Macy's 1/31/22
West Manchester Mall (2) Bon-Ton 2/28/07
Hecht's N/A
Value City 10/31/11
Wal-Mart 10/31/14
Magnolia Mall Belk 1/31/06
Best Buy 1/31/13
JC Penney 3/31/07
Sears 10/18/04
The Commons at Magnolia Goody's 5/31/12
Target N/A
Bradley Square Sears 10/23/05
Proffitt's 1/31/06
K-Mart 1/31/12
JC Penney 2/28/06
New River Mall Belks 4/19/08
JC Penney 3/31/08
Peebles 1/31/09
Sears 8/2/08
Patrick Henry Mall Dillard's Mens 4/30/08
Dillard's
Womens 9/22/13
JC Penney 10/31/15
Hecht's
Valley View Mall JC Penney 1/31/99
Herberges 7/31/05
Marshall 7/31/05
Fields 7/31/05
Sears 7/31/05
Martinsburg Mall Bon-Ton 1/31/12
JC Penney 8/31/11
Sears 9/8/11
Wal-Mart 6/28/11
Crossroads Mall Sears 11/30/08
JC Penney 3/31/06
Belk 12/31/06
---------------------------------
TOTAL WHOLLY OWNED
---------------------------------
TOTAL JOINT VENTURE
---------------------------------
TOTAL FOR Wholly Owned and Joint
Venture
---------------------------------
AVERAGE FOR Wholly Owned and
Joint Venture
Summary of Properties for Wholly Owned and
- ------------------------------------------------------------------------------------
Enclosed Mall PREIT Managed Existing Wholly owned
40 47 16 46
- ------------------------------------------------------------------------------------
Power Center Third Party Managed New Joint Venture
8 7 36 8
- ------------------------------------------------------------------------------------
Strip Center Redevelopment
6 2
- ------------------------------------------------------------------------------------
54 54 54 54
- ------------------------------------------------------------------------------------
Summary of Total Owned GLA for Wholly Owned and Joint Venture Properties
- -------------------------------------------------------------------------------------------------------------
Top 5 assets as a
percentage of Total
Enclosed Mall PREIT Managed Existing Wholly Owned Owned GLA:
22,738,572 23,408,560 5,900,413 23,281,729 15.9%
- -------------------------------------------------------------------------------------------------------------
Top asset as a
percentage of Total
Power Center Third Party Managed New Joint Venture Owned GLA:
3,053,016 3,137,538 19,330,036 3,264,369 3.6%
- -------------------------------------------------------------------------------------------------------------
Strip Center Redevelopment
754,510 1,315,649
- -------------------------------------------------------------------------------------------------------------
26,546,098 26,546,098 26,546,098 26,546,098
- -------------------------------------------------------------------------------------------------------------
(1) Does not include Westgate Anchor pad in Bethlehem, PA of 108,100 sf leased
for Bon-Ton with expiration date of 11/23/2005.
(2) PREIT has an 89% ownership interest and a 99% economic interest in these
properties. These properties are consolidated for financial reporting
purposes.
PAGE 21
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
Quarterly Activity
Property Acquisitions/Dispositions Summary
[PREIT AND PEI GRAPHICS OMITTED]
Date Acquired,
Square Feet/ Ownership Completed, or
Name of Project, Location Units/Acres Interest Sold
----------------------------------------- -------------- -------------- -------------- --------------
Acquisitions:
Merger with Crown American Realty Trust-
26 properties and 50% interest in Palmer
Park Mall Square Feet 16,236,008 50%-100% 4Q03
--------------
TOTAL ACQUISITIONS Square Feet 16,236,008
Pending Acquisitions:
New Garden, New Garden, PA Square Feet 404,614 100% 2Q05
--------------
TOTAL PENDING ACQUISITIONS Square Feet 404,614
Divestitures
None
TOTAL DIVESTITURES
Pending Divestitures:
Bradley Square Mall, Cleveland, TN,
Martinsburg Mall, Martinsburg, WV, Mount
berry Square Mall, Rome, GA, Schuykill
Mall, Frackville, PA, Shenango Valley
Mall, Hermitage, PA and West Manchester
Mall, York, PA. square feet 3,368,669
--------------
TOTAL PENDING DIVESTITURES square feet 3,368,669
Total Cost or PREIT's Cost Expected NOI
Name of Project, Location Price or Price Cap (1) Major Tenants
----------------------------------------- -------------- -------------- -------------- --------------
Acquisitions:
Merger with Crown American Realty Trust-
26 properties and 50% interest in Palmer
Park Mall $ 1,300,000,000 $1,300,000,000 10.20%
-------------- --------------
TOTAL ACQUISITIONS $ 1,300,000,000 $1,300,000,000
Pending Acquisitions:
New Garden, New Garden, PA $ 42,580,062 $ 27,830,062 8.5% Home Depot
-------------- --------------
TOTAL PENDING ACQUISITIONS $ 42,580,062 $ 27,830,062
Divestitures
None
TOTAL DIVESTITURES
Pending Divestitures:
Bradley Square Mall, Cleveland, TN,
Martinsburg Mall, Martinsburg, WV, Mount
berry Square Mall, Rome, GA, Schuykill
Mall, Frackville, PA, Shenango Valley
Mall, Hermitage, PA and West Manchester
Mall, York, PA. N/A N/A
TOTAL PENDING DIVESTITURES
(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.
PAGE 22
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
Yearly Activity
Property Acquisitions/Dispositions Summary
[PREIT AND PEI GRAPHICS OMITTED]
Date Acquired,
Square Feet/ Ownership Completed, or Total Cost or
Name of Project, Location Units/Acres Interest Sold Price
-------------- -------------- -------------- --------------
Acquisitions:
Merger with Crown American Realty
Trust- 26 properties and 50% interest
in Palmer Park Mall Square Feet 16,236,008 50%-100% 4Q03 $ 1,300,000,000
-------------- --------------
SUBTOTAL 16,236,008 $ 1,300,000,000
Partner's 70% interest in Willow
Grove Park, Willow Grove, PA Square Feet 1,205,720 100% 3Q03 122,300,000
Parcel of Land at Plymouth Meeting,
Plymouth Meeting, PA Acres 6.08 100% 3Q03 15,750,000
-------------- --------------
SUBTOTAL Square Feet 1,205,720 $ 138,050,000
Acres 6.08
Cherry Hill Mall, Cherry Hill, NJ Square Feet 1,281,482 2Q03
Moorestown Mall, Moorestown, NJ 1,055,796 2Q03
The Gallery at Market East,
Philadelphia, PA 192,440 2Q03
Exton Square Mall, Exton, PA 1,088,536 2Q03
Echelon Mall, Voorhees, NJ 1,142,467 2Q03
Plymouth Meeting Mall, Plymouth
Meeting, PA 813,225 2Q03
-------------- --------------
SUBTOTAL Square Feet 5,573,946 100% $ 549,400,000
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ACQUISITIONS Square Feet 23,015,674 1,987,450,000
Acres 6.08
- ---------------------------------------------------------------------------------------------------------------------------------
Pending Acquisitions:
New Garden, New Garden, PA Square Feet 404,614 100% 2Q05 $ 42,580,062
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL PENDING ACQUISITIONS Square Feet 404,620 $ 42,580,062
- ---------------------------------------------------------------------------------------------------------------------------------
Divestitures
Regency Lakeside Apartments, Omaha, NE Units 433 100% 3Q03
Emerald Point, Virginia Beach, VA 862 100% 3Q03
Fox Run Apartments, Warminster, PA 196 50% 3Q03
Will-O-Hill Apartments, Reading, PA 190 50% 3Q03
-------------- --------------
SUBTOTAL Units 1,681 $ 87,000,000
Fox Run Apartments, Bear, DE Units 414 100% 2Q03
Boca Palms Apartments, Boca Raton, FL 522 100% 2Q03
Cobblestone Apartments, Pompano
Beach, FL 384 100% 2Q03
Eagle's Nest Apartments, Coral
Spring, FL 264 100% 2Q03
Palms of Pembroke, Pembroke Pines, FL 348 100% 2Q03
Shenandoah Village Apartments, West
Palm Beach, FL 220 100% 2Q03
Marylander Apartments, Baltimore, MD 507 100% 2Q03
Hidden Lakes Apartments, Dayton, OH 360 100% 2Q03
Kenwood Apartments, Toledo, OH 504 100% 2Q03
2031 Locust Street, Philadelphia, PA 87 100% 2Q03
Camp Hill Plaza Apartments, Camp
Hill, PA 300 100% 2Q03
Lakewood Hills Apartments,
Harrisburg, PA 562 100% 2Q03
The Woods, Ambler, PA 320 100% 2Q03
-------------- --------------
SUBTOTAL Units 4,792 $ 314,000,000
Countrywood Apartments, Tampa, FL Units 536 50% 2Q03 $ 9,100,000
Cambridge Hall Apartments, West
Chester, PA Units 233 50% 6,700,000
-------------- --------------
SUBTOTAL Units 769 $ 15,800,000
Parcel of land in Crest Plaza,
Allentown, PA square feet 140,000 1Q03 $ 3,200,000
- ---------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL square feet 140,000 $ 3,200,000
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL DIVESTITURES Units 7,242 $ 420,000,000
Square feet 140,000
- ---------------------------------------------------------------------------------------------------------------------------------
Pending Divestitures:
Bradley Square Mall, Cleveland,
TN, Martinsburg Mall,
Martinsburg, WV, Mount berry
Square Mall, Rome, GA, Schuykill
Mall, Frackville, PA, Shenango
Valley Mall, Hermitage, PA and
West Manchester Mall, York, PA. square feet 3,368,669 N/A
TOTAL PENDING DIVESTITURES square feet 3,368,669
- ---------------------------------------------------------------------------------------------------------------------------------
PREIT's Cost Expected NOI
Name of Project, Location or Price Cap (1) Major Tenants
-------------- -------------- --------------
Acquisitions:
Merger with Crown American Realty
Trust- 26 properties and 50% interest
in Palmer Park Mall $ 1,300,000,000 10.20%
---------------
SUBTOTAL $ 1,300,000,000
Partner's 70% interest in Willow Bloomingdale's,
Grove Park, Willow Grove, PA 122,300,000 9.00% Macy's, Sears,
Strawbridge's
Parcel of Land at Plymouth Meeting,
Plymouth Meeting, PA 15,750,000 N/A
---------------
SUBTOTAL $ 138,050,000
Cherry Hill Mall, Cherry Hill, NJ JC Penney,
Macy's,
Strawbridge's
Moorestown Mall, Moorestown, NJ Lord & Taylor,
Strawbridge's
The Gallery at Market East,
Philadelphia, PA
Exton Square Mall, Exton, PA Strawbridge's,
K-Mart
Echelon Mall, Voorhees, NJ Strawbridge's,
Boscov's
Plymouth Meeting Mall, Plymouth
Meeting, PA Strawbridge's
---------------
SUBTOTAL $ 549,400,000
- ---------------------------------------------------------------------------------------------
TOTAL ACQUISITIONS $ 1,987,450,000
- ---------------------------------------------------------------------------------------------
Pending Acquisitions:
New Garden, New Garden, PA $ 27,830,062 8.5% Home Depot
- ---------------------------------------------------------------------------------------------
TOTAL PENDING ACQUISITIONS $ 27,830,062
- ---------------------------------------------------------------------------------------------
Divestitures
Regency Lakeside Apartments, Omaha, NE
Emerald Point, Virginia Beach, VA
Fox Run Apartments, Warminster, PA
Will-O-Hill Apartments, Reading, PA
---------------
SUBTOTAL $ 87,000,000
Fox Run Apartments, Bear, DE
Boca Palms Apartments, Boca Raton, FL
Cobblestone Apartments, Pompano
Beach, FL
Eagle's Nest Apartments, Coral
Spring, FL
Palms of Pembroke, Pembroke Pines, FL
Shenandoah Village Apartments, West
Palm Beach, FL
Marylander Apartments, Baltimore, MD
Hidden Lakes Apartments, Dayton, OH
Kenwood Apartments, Toledo, OH
2031 Locust Street, Philadelphia, PA
Camp Hill Plaza
Apartments, Camp Hill, PA
Lakewood Hills Apartments, Harrisburg, PA
The Woods, Ambler, PA
---------------
SUBTOTAL $ 314,000,000
Countrywood Apartments, Tampa, FL $ 9,100,000
Cambridge Hall Apartments, West
Chester, PA 6,700,000
---------------
SUBTOTAL $ 15,800,000
Parcel of land in Crest Plaza,
Allentown, PA $ 3,200,000 N/A Target
---------------
SUBTOTAL $ 3,200,000
- ---------------------------------------------------------------------------------------------
TOTAL DIVESTITURES $ 420,000,000
- ---------------------------------------------------------------------------------------------
Pending Divestitures:
Bradley Square Mall, Cleveland,
TN, Martinsburg Mall,
Martinsburg, WV, Mount berry
Square Mall, Rome, GA, Schuykill
Mall, Frackville, PA, Shenango
Valley Mall, Hermitage, PA and
West Manchester Mall, York, PA. N/A
TOTAL PENDING DIVESTITURES
(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.
PAGE 23
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Development Activity
TOTAL
PROJECTED TOTAL
PROPERTY GLA PROJECTED COST PREIT's SHARE
NAME OF PROJECT LOCATION PROPERTY TYPE (sq ft) (1) (1) OF COST
- -----------------------------------------------------------------------------------------------------------------------------
Christiana Power Center (Phase
II) (2) Newark, DE Power Center 355,670 $ 35,542,768 $ 35,542,768
New Garden New Garden
Twp, PA Power Center 404,614 42,580,062 27,830,062
Pavilion at Market East (3) Philadelphia,
PA Land N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------
Total Development Activity 760,284 $ 78,122,830 $ 63,372,830
=============================================================================================================================
PREIT's SHARE EXPECTED DATE OF
OF INVESTMENT STABILIZED NOI CONST START INITIAL EXPECTED DATE
NAME OF PROJECT TO DATE CAP DATE OCCUPANCY OF COMPLETION
- -----------------------------------------------------------------------------------------------------------------------------
Christiana Power Center (Phase
II) (2) $ 4,293,843 9.8% 4Q04 1Q06 1Q06
New Garden 1,299,390 8.5% 2Q05 1Q06 1Q06
Pavilion at Market East (3) 1,506,178 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------
Total Development Activity $ 7,099,411 9.2%
=============================================================================================================================
STABILIZED
OPERATIONS
NAME OF PROJECT DATE STATUS % COMP. % LEASED % OCCUPIED
- -----------------------------------------------------------------------------------------------------------------------------
Christiana Power Center (Phase
II) (2) 2Q06 Development 12% 79% 0%
New Garden 2Q06 Development 5% 32% 0%
Pavilion at Market East (3) N/A Construction N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------
Total Development Activity
=============================================================================================================================
NAME OF PROJECT ANCHORS PREIT's SHARE
- ----------------------------------------------------------------------
Christiana Power Center (Phase
II) (2) 100%
New Garden Home Depot,
Supermarket 100%
Pavilion at Market East (3) 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
PROPERTY GLA PROJECTED COST PREIT's SHARE
NAME OF PROJECT LOCATION PROPERTY TYPE (sq ft) (1) (1) OF COST
- -----------------------------------------------------------------------------------------------------------------------------
Magnolia Mall (2) Florence, SC Enclosed Mall 579,244 $ 11,529,000 $ 10,873,575
Prince Georges Plaza (2)(3) Hyattsville,
MD Enclosed Mall 893,274 24,146,000 17,200,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Redevelopment Activity $ 1,472,518 $ 35,675,000 $ 28,073,575
=============================================================================================================================
PREIT's SHARE EXPECTED DATE OF
OF INVESTMENT STABILIZED NOI CONST START INITIAL EXPECTED DATE
NAME OF PROJECT TO DATE CAP DATE OCCUPANCY OF COMPLETION
- -----------------------------------------------------------------------------------------------------------------------------
Magnolia Mall (2) $ 7,364,091 11.1% 2Q02 4Q02 4Q04
Prince Georges Plaza (2)(3) 4,301,326 12.0% 2Q03 4Q04 4Q04
- -----------------------------------------------------------------------------------------------------------------------------
Total Redevelopment Activity $ 11,665,417 11.7%
=============================================================================================================================
STABILIZED
OPERATIONS
NAME OF PROJECT DATE STATUS % COMP. % LEASED % OCCUPIED
- -----------------------------------------------------------------------------------------------------------------------------
Magnolia Mall (2) 4Q04 Construction 68% 88% 74%
Prince Georges Plaza (2)(3) 4Q05 Construction 25% 65% 0%
- -----------------------------------------------------------------------------------------------------------------------------
Total Redevelopment Activity
=============================================================================================================================
NAME OF PROJECT ANCHORS PREIT's SHARE
- ---------------------------------------------------------------------
Magnolia Mall (2) Best Buy,
Foodcourt 100%
Prince Georges Plaza (2)(3) 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 12/31/03.
PAGE 24
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Top Twenty Tenants (by PREIT's share of Annualized Base Rent)
PREIT's share Percent of
of PREIT's Total
Number of GLA of Annualized Annualized Retail
Tenant Stores Stores Base Rent Base Rent (2) Base Rent
- --------------------------------- -------------- -------------- -------------- -------------- --------------
The Gap, Inc./Old Navy (1) 58 680,011 "$12,729,826 "$11,910,516 5.30%
The Limited Stores, Inc. (1) 102 544,016 10,649,530 10,166,648 4.52%
JC Penney (1) 34 2,893,720 7,441,818 7,310,713 3.25%
Sears 33 3,432,057 6,570,377 6,414,645 2.85%
Footlocker, Inc. (1) 67 355,189 5,990,633 5,690,447 2.53%
Zales 89 70,394 5,095,220 4,884,446 2.17%
Hallmark Cards, Inc. (1) 59 207,855 4,422,366 4,346,033 1.93%
Trans World Entertainment 39 175,350 4,078,885 3,826,746 1.70%
Kay Jewelers 40 55,625 3,646,589 3,459,089 1.54%
Borders (1) 36 193,917 3,629,901 3,410,686 1.52%
Bon-Ton 18 1,284,678 3,394,099 3,394,099 1.51%
American Eagle Outfitters (1) 32 156,013 3,517,262 3,383,684 1.51%
Kay Bee Toys (1)(4) 41 166,224 3,012,744 2,875,859 1.28%
Shoe Show, Inc. 36 176,085 2,806,185 2,732,147 1.22%
Regis Corp. 82 95,502 2,739,393 2,696,101 1.20%
Boscov's (1) 7 1,308,706 3,137,572 2,695,972 1.20%
Sun Capital Partners (1) 27 91,171 2,654,884 2,575,483 1.15%
Payless Shoe Source (1) 45 148,540 2,702,296 2,561,611 1.14%
Charming Shoppes, Inc. (1) 31 216,259 2,597,844 2,458,806 1.09%
Luxottica Retail Group 39 79,376 2,603,716 2,424,788 1.08%
- -----------------------------------------------------------------------------------------------------------------------------
Total Top 20 Tenants 915 12,330,688 93,421,140 89,218,519 39.71%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Total Retail Leased 3,725 24,399,609 $ 288,743,218 $224,691,272 (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 4th quarter
base rent. Straight line rent is not included in the base rent figures.
(4) Kay Bee Toys filed for bankruptcy protection (chapter 11) in January, 2004
PAGE 25
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
Retail Lease Expiration Schedule - Anchors(1)
Year Leases Gross Leasable Area Annualized Base Rent
- ---------------------------------------------------------------------------------------------------------------------------------
PREIT's Share Percent of
Lease Number of of Rent in Total Average
Expiration Leases Percent of Rent in Expiring Year (PREIT's Expiring Base
Year Expiring Expiring GLA Total Expiring Year (3) Share) Rent psf
- ---------------------------------------------------------------------------------------------------------------------------------
Prior (2) 0 - 0.00% $- $- 0.00% $-
2003 1 85,483 0.68% 194,478 194,478 0.55% 2.28
2004 6 558,677 4.44% 1,000,212 551,112 1.55% 1.79
2005 24 1,839,102 14.61% 6,104,300 6,104,300 17.13% 3.32
2006 22 1,368,381 10.87% 3,643,959 3,643,959 10.23% 2.66
2007 11 939,155 7.46% 1,985,054 1,975,154 5.54% 2.11
2008 16 1,070,427 8.50% 2,799,649 2,799,649 7.86% 2.62
2009 13 902,499 7.17% 3,419,005 1,436,157 4.03% 3.79
2010 7 642,772 5.11% 2,146,713 2,146,713 6.02% 3.34
2011 13 1,169,231 9.29% 4,958,649 3,835,834 10.76% 4.24
2012 6 520,707 4.14% 1,332,856 1,295,975 3.64% 2.56
2013 5 304,486 2.42% 2,286,713 2,286,713 6.42% 7.51
Thereafter 28 3,185,384 25.31% 13,788,252 9,365,910 26.28% 4.33
- ---------------------------------------------------------------------------------------------------------------------------------
Totals: 152 12,586,304 100% $43,659,840 $35,635,954 100% $3.47
=================================================================================================================================
(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.
PAGE 26
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
Retail Lease Expiration Schedule -Non-Anchors(1)
Year Leases Gross Leasable Area Annualized Base Rent
- ---------------------------------------------------------------------------------------------------------------------------------
Percent of
Lease Number of PREIT's Share Total Average
Expiration Leases Percent of Rent in of Rent in (PREIT's Expiring Base
Year Expiring Expiring GLA Total Expiring Year Expiring Year Share) Rent psf
- ---------------------------------------------------------------------------------------------------------------------------------
Prior
(2)
2003 33 83,043 0.70% 1,066,620 1,014,885 0.44% 12.84
2004 511 1,119,816 9.48% 22,455,471 20,262,388 8.78% 20.05
2005 442 1,095,830 9.28% 24,150,690 22,273,252 9.65% 22.04
2006 432 1,219,843 10.33% 26,597,698 24,734,620 10.72% 21.80
2007 404 1,127,462 9.54% 23,663,277 22,151,923 9.60% 20.99
2008 366 1,152,369 9.75% 25,417,161 24,293,348 10.53% 22.06
2009 311 970,369 8.21% 21,948,503 21,208,261 9.19% 22.62
2010 332 1,117,510 9.46% 25,546,626 24,429,123 10.58% 22.86
2011 242 1,086,194 9.19% 23,394,563 20,328,269 8.81% 21.54
2012 195 840,091 7.11% 19,399,209 17,661,968 7.65% 23.09
2013 180 581,227 4.92% 14,392,418 13,705,092 5.94% 24.76
Thereafter 125 1,419,551 12.02% 23,544,625 18,742,603 8.12% 16.59
----------------------------------------------------------------------------------------------------------------------------------
Totals: 3,573 11,813,305 100% $251,576,861 $230,805,732 100% $21.30
==================================================================================================================================
(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.
PAGE 27
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
Leasing Activity Summary
RETAIL
Annualized
Average Increase/ Tenant
Previous Base Average New Decrease in Improvements
New Lease Number GLA Rent psf Base Rent psf Base Rent psf 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 11 24,589 28.00 28.65 0.65 1.43
------------- ------------- ------------- ------------- ------------- -------------
Total or Average 29 67,554 $28.62 $31.95 $3.32 $1.26
------------- ------------- ------------- ------------- ------------- -------------
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 19 31,926 - 18.15 18.15 0.93
------------- ------------- ------------- ------------- ------------- -------------
Total or Average 49 241,999 - $10.47 $10.47 $0.73
============= ============= ============= ============= ============= =============
TOTAL
Annualized Annualized
Leasing Costs of
Commissions Leasing psf
New Lease psf (1)(2) (1)(2)
- ----------------------------- ------------- -------------
Previously Leased Space:
1st Quarter $- $-
2nd Quarter -
3rd Quarter - 3.08
4th Quarter - 1.43
------------- -------------
Total or Average $- $1.26
------------- -------------
Previously Vacant Space:
1st Quarter $- $-
2nd Quarter 0.50
3rd Quarter 0.74
4th Quarter - 0.93
------------- -------------
Total or Average $- $0.73
============= =============
Annualized
Average Increase/ Tenant
Previous Base Average New Decrease in Improvements
Renewal (3) Number GLA Rent psf Base Rent psf Base Rent psf 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 51 118,603 22.95 24.08 1.13 -
------------- ------------- ------------- ------------- ------------- -------------
Total or Average 97 348,478 $17.03 $18.90 $1.88 $-
============= ============= ============= ============= ============= =============
TOTAL
Annualized Annualized
Leasing Costs of
Commissions Leasing psf
Renewal (3) 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.
PAGE 28
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
Capital Expenditures
Q4 03
(3 months ended December 31, 2003)
--------------------------------------------------------
Retail Wholly Owned Joint Ventures Total
- --------------------------------------------------------------------- ---------------- ---------------- ----------------
New development projects $856,081 $856,081
Redevelopment projects with incremental GLA and/or Anchor Replacement 3,125,754 3,125,754
Renovation with no incremental GLA -
Tenant allowances 1,072,892 192,500 1,265,392
Operational capital expenditures at properties: -
CAM expenditures 326,758 326,758
Non-CAM expenditures 231,021 319,163 550,184
---------------- ---------------- ----------------
Total $5,612,506 $511,663 $6,124,169
================ ================ ================
External and internal leasing commissions for this period were $27,000
PAGE 29
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
Enclosed Malls
(Includes Non-Anchor Q403 % Change
Owned Space) ------------------------------------------------- -------------------------------------------------
In-Line In-Line
Total only In-Line Total Total only In-Line
Total w/Anchor (Non- (Non- w/Anchor w/Anchor (Non- (Non-
w/Anchor % Anchor) Anchor) % % % Anchor) % Anchor) %
% Leased Available % Leased Available Leased Available Leased Available
--------- --------- --------- --------- --------- --------- --------- ---------
Beaver Valley Mall 90.1% 9.9% 78.7% 21.3% -1.5% 1.5% -3.2% 3.2%
Bradley Square 87.9% 12.1% 67.2% 32.8% N/A N/A N/A N/A
Capital City 99.3% 0.7% 98.8% 1.2% N/A N/A N/A N/A
Chambersburg Mall 93.7% 6.3% 86.6% 13.4% N/A N/A N/A N/A
Cherry Hill Mall 93.6% 6.4% 93.6% 6.4% N/A N/A N/A N/A
Crossroads Mall 94.6% 5.4% 87.4% 12.6% N/A N/A N/A N/A
Dartmouth Mall 81.4% 18.6% 93.1% 6.9% 2.6% -2.6% 5.3% -5.3%
Echelon Mall 41.2% 58.8% 70.7% 29.3% N/A N/A N/A N/A
Exton Square Mall 94.2% 5.8% 87.3% 12.7% N/A N/A N/A N/A
Francis Scott Key
Mall 96.1% 3.9% 92.1% 7.9% N/A N/A N/A N/A
Jacksonville Mall 98.5% 1.5% 96.9% 3.1% N/A N/A N/A N/A
Laurel Mall 98.3% 1.7% 95.5% 4.5% 2.3% -2.3% 6.2% -6.2%
Lehigh Valley Mall 91.8% 8.2% 88.1% 11.9% -4.7% 4.7% -6.8% 6.8%
Logan Valley Mall 98.1% 1.9% 95.5% 4.5% N/A N/A N/A N/A
Lycoming Mall 91.9% 8.1% 84.2% 15.8% N/A N/A N/A N/A
Magnolia Mall 94.2% 5.8% 85.1% 14.9% -0.3% 0.3% -0.7% 0.7%
Martinsburg Mall 94.7% 5.3% 82.2% 17.8% N/A N/A N/A N/A
Moorestown Mall 96.2% 3.8% 91.4% 8.6% N/A N/A N/A N/A
Mount Berry Square 88.6% 11.4% 73.8% 26.2% N/A N/A N/A N/A
New River Valley
Mall 94.5% 5.5% 87.4% 12.6% N/A N/A N/A N/A
Nittany Mall 94.4% 5.6% 88.7% 11.3% N/A N/A N/A N/A
North Hanover Mall 93.7% 6.3% 82.3% 17.7% N/A N/A N/A N/A
Palmer Park Mall 98.5% 1.5% 95.0% 5.0% 2.9% -2.9% 9.7% -9.7%
Patrick Henry Mall 99.1% 0.9% 98.0% 2.0% N/A N/A N/A N/A
Phillipsburg Mall 74.8% 25.2% 77.0% 23.0% N/A N/A N/A N/A
Plymouth Meeting 73.8% 26.2% 90.7% 9.3% N/A N/A N/A N/A
Prince Georges Plaza 88.8% 11.2% 93.0% 7.0% -0.2% 0.2% -0.5% 0.5%
Schuylkill Mall 77.2% 22.8% 70.7% 29.3% N/A N/A N/A N/A
Shenango Valley Mall 92.5% 7.5% 69.1% 30.9% N/A N/A N/A N/A
South Mall 95.7% 4.3% 91.9% 8.1% N/A N/A N/A N/A
The Gallery at
Market East 94.6% 5.4% 94.6% 5.4% N/A N/A N/A N/A
Uniontown Mall 96.1% 3.9% 90.2% 9.8% N/A N/A N/A N/A
Valley Mall 99.4% 0.6% 98.9% 1.1% N/A N/A N/A N/A
Valleyview Mall 94.7% 5.3% 92.6% 7.4% N/A N/A N/A N/A
Viewmont Mall 99.1% 0.9% 97.5% 2.5% N/A N/A N/A N/A
Washington Crown
Center 93.0% 7.0% 87.1% 12.9% N/A N/A N/A N/A
West Manchester Mall 80.8% 19.2% 62.2% 37.8% N/A N/A N/A N/A
Willow Grove Park 96.2% 3.8% 93.7% 6.3% -0.4% 0.4% -0.7% 0.7%
Wiregrass Mall 82.9% 17.1% 82.9% 17.1% N/A N/A N/A N/A
Wyoming Mall 98.0% 2.0% 94.2% 5.8% N/A N/A N/A N/A
--------- --------- --------- --------- --------- --------- --------- ---------
Enclosed Malls
weighted average
(1) 90.5% 9.5% 87.4% 12.6% -1.2% 1.2% -2.6% 2.6%
--------- --------- --------- --------- --------- --------- --------- ---------
Wholly Owned
Properties 89.9% 10.1% 86.8% 13.2% 2.6% -2.6% -0.4% 0.4%
Joint Venture
Properties 95.8% 4.2% 91.9% 8.1% -0.4% 0.4% -0.7% 0.7%
--------- --------- --------- --------- --------- --------- --------- ---------
PRI-managed 90.2% 9.8% 87.1% 12.9% 0.3% -0.3% -1.4% 1.4%
Non PRI-managed 94.7% 5.3% 90.4% 9.6% -1.5% 1.5% -2.8% 2.8%
--------- --------- --------- --------- --------- --------- --------- ---------
Same Properties/
Existing 91.9% 8.1% 91.7% 8.3% 1.1% -1.1% 0.3% -0.3%
New 90.3% 9.7% 86.8% 13.2% -3.1% 3.1% -0.5% 0.5%
Redevelopment
Properties 91.1% 8.9% 89.9% 10.1% -3.4% 3.4% 4.1% -4.1%
--------- --------- --------- --------- --------- --------- --------- ---------
Enclosed Malls
(Includes Non-Anchor Q402
Owned Space) -------------------------------------------------
In-Line
Total Total only In-Line
w/Anchor w/Anchor (Non- (Non-
% % Anchor) % Anchor) %
Leased Available Leased Available
--------- --------- --------- ---------
Beaver Valley Mall 91.6% 8.4% 82.0% 18.0%
Bradley Square N/A N/A N/A N/A
Capital City N/A N/A N/A N/A
Chambersburg Mall N/A N/A N/A N/A
Cherry Hill Mall N/A N/A N/A N/A
Crossroads Mall N/A N/A N/A N/A
Dartmouth Mall 78.8% 21.2% 87.8% 12.2%
Echelon Mall N/A N/A N/A N/A
Exton Square Mall N/A N/A N/A N/A
Francis Scott Key
Mall N/A N/A N/A N/A
Jacksonville Mall N/A N/A N/A N/A
Laurel Mall 96.0% 4.0% 89.3% 10.7%
Lehigh Valley Mall 96.5% 3.5% 94.9% 5.1%
Logan Valley Mall N/A N/A N/A N/A
Lycoming Mall N/A N/A N/A N/A
Magnolia Mall 94.5% 5.5% 85.8% 14.2%
Martinsburg Mall N/A N/A N/A N/A
Moorestown Mall N/A N/A N/A N/A
Mount Berry Square N/A N/A N/A N/A
New River Valley
Mall N/A N/A N/A N/A
Nittany Mall N/A N/A N/A N/A
North Hanover Mall N/A N/A N/A N/A
Palmer Park Mall 95.6% 4.4% 85.3% 14.7%
Patrick Henry Mall N/A N/A N/A N/A
Phillipsburg Mall N/A N/A N/A N/A
Plymouth Meeting N/A N/A N/A N/A
Prince Georges Plaza 88.9% 11.1% 93.5% 6.5%
Schuylkill Mall N/A N/A N/A N/A
Shenango Valley Mall N/A N/A N/A N/A
South Mall N/A N/A N/A N/A
The Gallery at
Market East N/A N/A N/A N/A
Uniontown Mall N/A N/A N/A N/A
Valley Mall N/A N/A N/A N/A
Valleyview Mall N/A N/A N/A N/A
Viewmont Mall N/A N/A N/A N/A
Washington Crown
Center N/A N/A N/A N/A
West Manchester Mall N/A N/A N/A N/A
Willow Grove Park 96.6% 3.4% 94.4% 5.6%
Wiregrass Mall N/A N/A N/A N/A
Wyoming Mall N/A N/A N/A N/A
--------- --------- --------- ---------
Enclosed Malls
weighted average
(1) 91.7% 8.3% 89.9% 10.1%
--------- --------- --------- ---------
Wholly Owned
Properties 87.3% 12.7% 87.2% 12.8%
Joint Venture
Properties 96.2% 3.8% 92.6% 7.4%
--------- --------- --------- ---------
PRI-managed 90.0% 10.0% 88.5% 11.5%
Non PRI-managed 96.3% 3.7% 93.2% 6.8%
--------- --------- --------- ---------
Same Properties/
Existing 90.8% 9.2% 91.3% 8.7%
New 93.4% 6.6% 87.3% 12.7%
Redevelopment
Properties 94.5% 5.5% 85.8% 14.2%
--------- --------- --------- ---------
(1) Magnolia Mall and Prince Georges Plaza are classified as a redevelopment
property and are not included in the weighted average.
PAGE 30
Pennsylvania REIT
[GRAPHIC OMITTED]
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
Enclosed Malls
(Includes Non-Anchor
Owned Space)
Q403
--------------------------------------------------------------------------------------------
Avg Base Rent Avg % Rent psf Additional Avg Comp Sales Occup. Cost
psf (1) (1) Charges psf psf (2) Ratio
--------------- --------------- --------------- --------------- ---------------
Beaver Valley Mall $17.05 $0.46 $5.25 $238 9.57%
Bradley Square 14.75 0.54 3.74 221 8.61%
Capital City 21.15 0.93 5.74 351 7.93%
Chambersburg Mall 17.88 0.19 4.95 230 10.01%
Cherry Hill Mall 34.63 0.90 16.10 420 12.29%
Crossroads Mall 16.59 1.18 6.01 257 9.25%
Dartmouth Mall 19.20 1.43 7.83 389 7.31%
Echelon Mall 23.07 0.20 12.50 225 15.90%
Exton Square Mall 35.44 0.53 13.01 371 13.20%
Francis Scott Key
Mall 20.93 0.39 6.17 270 10.18%
Jacksonville Mall 21.98 1.09 5.72 344 8.37%
Laurel Mall 13.81 0.43 5.33 263 7.45%
Lehigh Valley Mall 30.13 0.68 9.49 440 9.16%
Logan Valley Mall 21.36 1.29 6.60 297 9.85%
Lycoming Mall 14.04 1.29 4.79 244 8.25%
Magnolia Mall (3) 24.07 0.74 8.55 311 10.72%
Martinsburg Mall 15.73 0.30 9.48 243 10.50%
Moorestown Mall 24.72 0.72 14.14 330 11.99%
Mount Berry Square 16.03 0.75 4.28 223 9.44%
New River Valley
Mall 19.10 0.48 4.54 229 10.54%
Nittany Mall 19.84 0.72 7.12 256 10.81%
North Hanover Mall 18.42 1.03 6.11 275 9.30%
Palmer Park Mall 21.56 1.27 9.28 335 9.58%
Patrick Henry Mall 30.46 1.72 10.04 414 10.20%
Phillipsburg Mall 21.92 0.89 10.05 285 11.53%
Plymouth Meeting 19.08 0.40 7.39 264 10.18%
Prince Georges Plaza
(3) 23.35 1.33 10.37 385 9.10%
Schuylkill Mall 10.36 0.29 3.27 196 7.10%
Shenango Valley Mall 16.93 0.90 7.12 261 9.56%
South Mall 12.51 0.73 4.29 285 6.15%
The Gallery at
Market East 33.28 0.73 9.20 365 11.84%
Uniontown Mall 13.85 1.00 4.14 254 7.47%
Valley Mall 18.07 0.88 4.76 305 7.77%
Valleyview Mall 21.71 0.25 10.36 304 10.63%
Viewmont Mall 22.15 1.59 7.23 344 9.00%
Washington Crown
Center 15.60 0.69 3.84 246 8.19%
West Manchester Mall 16.44 0.37 5.06 212 10.31%
Willow Grove Park 37.60 0.22 19.88 395 14.61%
Wiregrass Mall 20.75 0.41 7.33 262 10.87%
Wyoming Mall 21.70 0.49 7.14 297 9.87%
--------------- --------------- --------------- --------------- ---------------
Enclosed Malls
weighted average $21.88 $0.74 $8.16 $305 10.11%
--------------- --------------- --------------- --------------- ---------------
Wholly Owned
Properties $21.04 $0.77 $7.69 $295 10.01%
Joint Venture
Properties $28.31 $0.56 $11.82 $381 10.68%
PRI-managed $21.67 $0.75 $8.16 $299 10.23%
Non PRI-managed $24.87 $0.60 $8.15 $383 8.78%
Same Properties/
Existing $22.86 $0.92 $8.19 $379 8.44%
New $21.76 $0.72 $8.16 $295 10.38%
--------------- --------------- --------------- --------------- ---------------
Redevelopment
Properties $23.61 $1.11 $9.70 $358 9.62%
=============== =============== =============== =============== ===============
Enclosed Malls
(Includes Non-Anchor
Owned Space)
% Change
--------------------------------------------------------------------------------------------
Avg Base Rent Additional Avg Comp Sales Occup. Cost
psf Avg % Rent psf Charges psf psf Ratio
--------------- --------------- --------------- --------------- ---------------
Beaver Valley Mall -3.3% -21.3% 0.6% -3.6% 0.1%
Bradley Square N/A N/A N/A N/A N/A
Capital City N/A N/A N/A N/A N/A
Chambersburg Mall N/A N/A N/A N/A N/A
Cherry Hill Mall N/A N/A N/A N/A N/A
Crossroads Mall N/A N/A N/A N/A N/A
Dartmouth Mall 3.7% -10.8% 4.4% -2.8% 0.4%
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
Francis Scott Key
Mall N/A N/A N/A N/A N/A
Jacksonville Mall N/A N/A N/A N/A N/A
Laurel Mall -2.6% 21.8% 17.4% -9.6% 0.9%
Lehigh Valley Mall 8.1% -12.1% 9.3% 2.8% 0.4%
Logan Valley Mall N/A N/A N/A N/A N/A
Lycoming Mall N/A N/A N/A N/A N/A
Magnolia Mall (3) 13.1% -37.2% -0.4% 4.7% 0.3%
Martinsburg Mall N/A N/A N/A N/A N/A
Moorestown Mall N/A N/A N/A N/A N/A
Mount Berry Square N/A N/A N/A N/A N/A
New River Valley
Mall N/A N/A N/A N/A N/A
Nittany Mall N/A N/A N/A N/A N/A
North Hanover Mall N/A N/A N/A N/A N/A
Palmer Park Mall 0.5% -7.9% -1.1% 1.8% -0.2%
Patrick Henry Mall N/A N/A N/A N/A N/A
Phillipsburg Mall N/A N/A N/A N/A N/A
Plymouth Meeting N/A N/A N/A N/A N/A
Prince Georges Plaza
(3) -0.1% -15.1% -2.7% 4.3% -0.5%
Schuylkill Mall N/A N/A N/A N/A N/A
Shenango Valley Mall N/A N/A N/A N/A N/A
South 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
Uniontown Mall N/A N/A N/A N/A N/A
Valley Mall N/A N/A N/A N/A N/A
Valleyview Mall N/A N/A N/A N/A N/A
Viewmont Mall N/A N/A N/A N/A N/A
Washington Crown
Center N/A N/A N/A N/A N/A
West Manchester Mall N/A N/A N/A N/A N/A
Willow Grove Park 4.2% -31.5% 17.6% 0.8% 1.0%
Wiregrass Mall N/A N/A N/A N/A N/A
Wyoming Mall N/A N/A N/A N/A N/A
--------------- --------------- --------------- --------------- ---------------
Enclosed Malls
weighted average -7.6% -17.7% -10.8% -15.0% 0.7%
--------------- --------------- --------------- --------------- ---------------
Wholly Owned
Properties 6.4% -36.3% 0.2% -11.2% 1.4%
Joint Venture
Properties 3.9% -10.1% 12.6% -0.4% 0.7%
PRI-managed -8.2% -25.9% -17.6% -13.4% 0.2%
Non PRI-managed 4.4% -7.6% 9.2% -1.2% 0.5%
Same Properties/
Existing 2.1% -18.8% -2.2% -0.5% 0.1%
New -16.9% 57.3% -23.4% -6.1% -1.5%
--------------- --------------- --------------- --------------- ---------------
Redevelopment
Properties 11.0% -5.0% 13.0% 20.5% -0.8%
=============== =============== =============== =============== ===============
Enclosed Malls
(Includes Non-Anchor
Owned Space)
Q402
--------------------------------------------------------------------------------------------
Avg Base Rent Avg % Rent psf Additional Avg Comp Sales Occup. Cost
psf (1) (1) Charges psf psf(2) Ratio
--------------- --------------- --------------- --------------- ---------------
Beaver Valley Mall $17.63 $0.58 $5.22 $247 9.49%
Bradley Square N/A N/A N/A N/A N/A
Capital City N/A N/A N/A N/A N/A
Chambersburg Mall N/A N/A N/A N/A N/A
Cherry Hill Mall N/A N/A N/A N/A N/A
Crossroads Mall N/A N/A N/A N/A N/A
Dartmouth Mall 18.52 1.60 7.50 400 6.90%
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
Francis Scott Key
Mall N/A N/A N/A N/A N/A
Jacksonville Mall N/A N/A N/A N/A N/A
Laurel Mall 14.18 0.36 4.54 291 6.56%
Lehigh Valley Mall 27.87 0.77 8.68 428 8.72%
Logan Valley Mall N/A N/A N/A N/A N/A
Lycoming Mall N/A N/A N/A N/A N/A
Magnolia Mall (3) 21.27 1.17 8.58 297 10.45%
Martinsburg Mall N/A N/A N/A N/A N/A
Moorestown Mall N/A N/A N/A N/A N/A
Mount Berry Square N/A N/A N/A N/A N/A
New River Valley
Mall N/A N/A N/A N/A N/A
Nittany Mall N/A N/A N/A N/A N/A
North Hanover Mall N/A N/A N/A N/A N/A
Palmer Park Mall 21.45 1.38 9.38 329 9.79%
Patrick Henry Mall N/A N/A N/A N/A N/A
Phillipsburg Mall N/A N/A N/A N/A N/A
Plymouth Meeting N/A N/A N/A N/A N/A
Prince Georges Plaza
(3) 23.37 1.57 10.66 369 9.65%
Schuylkill Mall N/A N/A N/A N/A N/A
Shenango Valley Mall N/A N/A N/A N/A N/A
South 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
Uniontown Mall N/A N/A N/A N/A N/A
Valley Mall N/A N/A N/A N/A N/A
Valleyview Mall N/A N/A N/A N/A N/A
Viewmont Mall N/A N/A N/A N/A N/A
Washington Crown
Center N/A N/A N/A N/A N/A
West Manchester Mall N/A N/A N/A N/A N/A
Willow Grove Park 36.08 0.32 16.91 392 13.60%
Wiregrass Mall N/A N/A N/A N/A N/A
Wyoming Mall N/A N/A N/A N/A N/A
--------------- --------------- --------------- --------------- ---------------
Enclosed Malls
weighted average $23.67 $0.90 $9.15 $358 9.41%
--------------- --------------- --------------- --------------- ---------------
Wholly Owned
Properties $19.77 $1.20 $7.67 $332 8.63%
Joint Venture
Properties $27.24 $0.63 $10.50 $383 10.03%
PRI-managed $23.61 $1.02 $9.90 $345 10.00%
Non PRI-managed $23.83 $0.65 $7.46 $388 8.24%
Same Properties/
Existing $22.39 $1.13 $8.38 $381 8.38%
New $26.19 $0.46 $10.64 $314 11.87%
--------------- --------------- --------------- --------------- ---------------
Redevelopment
Properties $21.27 $1.17 $8.58 $297 10.45%
=============== =============== =============== =============== ===============
(1) Base rent is actual for Q403. Additional charges and % rent are projections
for 2003.
(2) Average comparable sales for Q402 are actual.
(3) Magnolia Mall and Prince Georges Plaza are classified as a redevelopment
property and are not included in the weighted average.
PAGE 31
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Power Centers
(Includes Non-Anchor Owned Space)
Q403 % Change
------------------------------------------------ ------------------------------------------------
Avg Base Rent Avg % Rent Additional Avg Base Rent Avg % Rent Additional
psf (1) psf (1) Charges psf psf psf Charges psf
------------- ------------- ------------- ------------- ------------- -------------
Christiana Power Center $19.59 $- $1.95 1.2% -100.0% 28.4%
Creekview Shopping
Center 14.33 - 2.87 0.2% N/A 10.5%
Northeast Tower Center 13.43 - 3.91 -0.1% N/A 18.7%
Paxton Towne Center 16.10 - 2.62 1.4% N/A 24.3%
The Court at Oxford
Valley 15.14 0.03 3.77 -1.2% N/A 42.9%
Red Rose Commons 13.57 0.02 2.89 2.6% -58.3% 18.4%
Whitehall Mall 10.72 0.41 3.12 -1.0% 40.6% 18.8%
Metroplex Shopping
Center 18.13 - 3.45 0.0% N/A -4.2%
------------- ------------- ------------- ------------- ------------- -------------
Power Centers weighted
average $15.22 $0.06 $3.17 0.4% 34.6% 15.6%
------------- ------------- ------------- ------------- ------------- -------------
Wholly Owned Properties $15.61 $- $2.90 0.8% -100.0% 19.6%
Joint Venture Properties $14.98 $0.09 $3.33 0.1% 38.0% 13.9%
------------- ------------- ------------- ------------- ------------- -------------
PRI-managed $15.61 $- $2.90 0.8% -100.0% 19.6%
Non PRI-managed $14.98 $0.09 $3.33 0.1% 38.0% 13.9%
------------- ------------- -------------
Same Properties/Existing $15.22 $0.06 $3.17 0.7% 6.7% 10.8%
------------- ------------- -------------
New $- $- $- -100.0% N/A -100.0%
Redevelopment Properties $- $- $- N/A N/A N/A
------------- ------------- ------------- ------------- ------------- -------------
Q402
------------------------------------------------
Avg Base Rent Avg % Rent Additional
psf (1) psf (1) Charges psf
------------- ------------- -------------
Christiana Power Center $19.37 $0.01 $1.52
Creekview Shopping
Center 14.31 - 2.60
Northeast Tower Center 13.44 - 3.30
Paxton Towne Center 15.88 - 2.11
The Court at Oxford
Valley 15.33 - 2.64
Red Rose Commons 13.22 0.04 2.44
Whitehall Mall 10.83 0.29 2.63
Metroplex Shopping
Center 18.13 - 3.60
------------- ------------- -------------
Power Centers weighted
average $15.15 $0.04 $2.75
------------- ------------- -------------
Wholly Owned Properties $15.48 $0.00 $2.43
Joint Venture Properties $14.97 $0.07 $2.93
------------- ------------- -------------
PRI-managed $15.48 $0.00 $2.43
Non PRI-managed $14.97 $0.07 $2.93
------------- ------------- -------------
Same Properties/Existing $15.11 $0.05 $2.87
New $15.32 $- $2.28
Redevelopment Properties $- $- $-
------------- ------------- -------------
(1) Base rent is actual for Q403. Additional charges and % rent are projections
for 2003.
Occupancy
Q403 Change in % Occupancy
------------------------------------------------- -------------------------------------------------
In-Line In-Line
only In-Line only In-Line
Total w/ Total w/ (Non- (Non- Total w/ Total w/ (Non- (Non-
Anchor % Anchor % Anchor) % Anchor) % Anchor % Anchor % Anchor) % Anchor) %
Leased Available Leased Available Leased Available Leased Available
--------- --------- --------- --------- --------- --------- --------- ---------
Christiana Power
Center 100.0% 0.0% 100.0% 0.0% 0.0% 0.0% 15.7% -15.7%
Creekview Shopping
Center 100.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Northeast Tower Center 100.0% 0.0% 100.0% 0.0% 0.0% 0.0% 68.8% -68.8%
Paxton Towne Center 92.1% 7.9% 87.9% 12.1% 2.4% -2.4% -10.8% 10.8%
The Court at Oxford
Valley 97.1% 2.9% 95.3% 4.7% -2.9% 2.9% 2.3% -2.3%
Red Rose Commons 99.2% 0.8% 99.2% 0.8% 0.0% 0.0% 2.0% -2.0%
Whitehall Mall 97.6% 2.4% 94.7% 5.3% -0.3% 0.3% 3.2% -3.2%
Metroplex Shopping
Center 100.0% 0.0% 100.0% 0.0% 0.0% 0.0% 29.2% -29.2%
--------- --------- --------- --------- --------- --------- --------- ---------
Power Centers weighted
average 97.9% 2.1% 96.7% 3.3% -0.1% 0.1% -0.2% 0.2%
--------- --------- --------- --------- --------- --------- --------- ---------
Wholly Owned
Properties 97.3% 2.7% 95.1% 4.9% 1.2% -1.2% 1.5% -1.5%
Joint Venture
Properties 98.4% 1.6% 97.6% 2.4% -0.9% 0.9% -1.3% 1.3%
--------- --------- --------- --------- --------- --------- --------- ---------
PRI-managed 97.3% 2.7% 95.1% 4.9% 1.2% -1.2% 1.5% -1.5%
Non PRI-managed 98.4% 1.6% 97.6% 2.4% -0.9% 0.9% -1.3% 1.3%
--------- --------- --------- --------- --------- --------- --------- ---------
Same Properties/
Existing 97.9% 2.1% 96.7% 3.3% -1.5% 1.5% -2.4% 2.4%
New N/A N/A N/A N/A N/A N/A N/A N/A
Redevelopment
Properties N/A N/A N/A N/A N/A N/A N/A N/A
--------- --------- --------- --------- --------- --------- --------- ---------
Q402
-------------------------------------------------
In-Line
only In-Line
Total w/ Total w/ (Non- (Non-
Anchor % Anchor % Anchor) % Anchor) %
Leased Available Leased Available
--------- --------- --------- ---------
Christiana Power
Center 100.0% 0.0% 84.3% 15.7%
Creekview Shopping
Center 100.0% 0.0% 100.0% 0.0%
Northeast Tower Center 100.0% 0.0% 31.2% 68.8%
Paxton Towne Center 89.7% 10.3% 98.7% 1.3%
The Court at Oxford
Valley 100.0% 0.0% 93.0% 7.0%
Red Rose Commons 99.2% 0.8% 97.1% 2.9%
Whitehall Mall 98.0% 2.0% 91.4% 8.6%
Metroplex Shopping
Center 100.0% 0.0% 70.8% 29.2%
--------- --------- --------- ---------
Power Centers weighted
average 98.0% 2.0% 96.9% 3.1%
--------- --------- --------- ---------
Wholly Owned
Properties 96.2% 3.8% 93.6% 6.4%
Joint Venture
Properties 99.2% 0.8% 98.9% 1.1%
--------- --------- --------- ---------
PRI-managed 96.2% 3.8% 93.6% 6.4%
Non PRI-managed 99.2% 0.8% 98.9% 1.1%
--------- --------- --------- ---------
Same Properties/
Existing 99.4% 0.6% 99.1% 0.9%
New N/A N/A N/A N/A
Redevelopment
Properties N/A N/A N/A N/A
--------- --------- --------- ---------
PAGE 32
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Strip Centers
(Includes Non-Anchor Owned Space)
Q403 % Change
---------------------------------------------- ----------------------------------------------
Avg Base Rent Avg % Rent Additional Avg Base Rent Avg % Rent Additional
psf (1) psf (1) Charges psf psf psf Charges psf
------------- ------------- ------------- ------------- ------------- -------------
Crest Plaza Shopping
Center $15.32 $- $2.72 12.5% -100.0% 112.3%
Festival at Exton 16.71 - 4.24 0.1% N/A 29.2%
The Commons at Magnolia 12.89 0.03 1.63 1.6% -45.9% 474.5%
Rio Mall 5.89 - 0.25 -4.8% N/A -23.0%
South Blanding Village 8.99 - 2.14 2.2% N/A 0.0%
Springfield Park I & II 17.66 - 5.21 6.9% -100.0% -17.1%
------------- ------------- ------------- ------------- ------------- -------------
Strip Centers weighted
average $13.81 $0.01 $2.92 2.2% -95.5% 23.9%
------------- ------------- ------------- ------------- ------------- -------------
Wholly Owned Properties $14.32 $0.01 $2.94 2.8% -94.3% 45.8%
Joint Venture Properties $12.06 $- $2.85 1.1% -100.0% -21.6%
------------- ------------- ------------- ------------- ------------- -------------
PRI-managed $14.77 $0.01 $3.25 3.5% -95.5% 26.5%
Non PRI-managed $5.89 $- $0.25 -4.8% N/A -23.0%
------------- ------------- ------------- ------------- ------------- -------------
Same Properties/Existing $13.67 $- $3.36 -0.6% -100.0% 5.9%
New $14.05 $0.02 $2.15 7.9% -95.1% 234.5%
Redevelopment Properties $- $- $- N/A N/A N/A
------------- ------------- ------------- ------------- ------------- -------------
Q402
----------------------------------------------
Avg Base Rent Avg % Rent Additional
psf (1) psf (1) Charges psf
------------- ------------- -------------
Crest Plaza Shopping
Center $13.62 $0.86 $1.28
Festival at Exton 16.69 - 3.28
The Commons at Magnolia 12.68 0.06 0.28
Rio Mall 6.18 - 0.32
South Blanding Village 8.80 - 2.14
Springfield Park I & II 16.52 0.23 6.28
------------- ------------- -------------
Strip Centers weighted
average $13.51 $0.14 $2.36
------------- ------------- -------------
Wholly Owned Properties $13.93 $0.14 $2.02
Joint Venture Properties $11.93 $0.13 $3.63
------------- ------------- -------------
PRI-managed $14.27 $0.15 $2.57
Non PRI-managed $6.18 $- $0.32
------------- ------------- -------------
Same Properties/Existing $13.75 $0.04 $3.18
New $13.02 $0.35 $0.64
Redevelopment Properties $- $- $-
------------- ------------- -------------
(1) Base rent is actual for Q403. Additional charges and % rent are projections
for 2003.
Occupancy
Q403 Change in % Occupancy
------------------------------------------------- -------------------------------------------------
In-Line In-Line
only In-Line only In-Line
Total w/ Total w/ (Non- (Non- Total w/ Total w/ (Non- (Non-
Anchor % Anchor % Anchor) % Anchor) % Anchor % Anchor % Anchor) % Anchor) %
Leased Available Leased Available Leased Available Leased Available
--------- --------- --------- --------- --------- --------- --------- ---------
Crest Plaza Shopping
Center 85.8% 14.2% 75.3% 24.7% 39.0% -39.0% 44.1% -44.1%
Festival at Exton 95.5% 4.5% 92.3% 7.7% -3.7% 3.7% -6.4% 6.4%
The Commons at
Magnolia 97.6% 2.4% 95.3% 4.7% 1.1% -1.1% 2.3% -2.3%
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% 0.3% -0.3% 2.7% -2.7%
--------- --------- --------- --------- --------- --------- --------- ---------
Strip Centers weighted
average 94.8% 5.2% 87.2% 12.8% 7.8% -7.8% 12.5% -12.5%
--------- --------- --------- --------- --------- --------- --------- ---------
Wholly Owned
Properties 94.2% 5.8% 88.4% 11.6% 11.9% -11.9% 15.1% -15.1%
Joint Venture
Properties 95.8% 4.2% 83.3% 16.7% 0.2% -0.2% 2.9% -2.9%
--------- --------- --------- --------- --------- --------- --------- ---------
PRI-managed 93.5% 6.5% 86.0% 14.0% 9.6% -9.6% 13.1% -13.1%
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% -0.9% 0.9% -2.2% 2.2%
New 91.6% 8.4% 84.6% 15.4% 24.9% -24.9% 30.3% -30.3%
Redevelopment
Properties 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
--------- --------- --------- --------- --------- --------- --------- ---------
Q402
-------------------------------------------------
In-Line
only In-Line
Total w/ Total w/ (Non- (Non-
Anchor % Anchor % Anchor) % Anchor) %
Leased Available Leased Available
--------- --------- --------- ---------
Crest Plaza Shopping
Center 46.8% 53.2% 31.2% 68.8%
Festival at Exton 99.3% 0.7% 98.7% 1.3%
The Commons at
Magnolia 96.5% 3.5% 93.0% 7.0%
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% 70.8% 29.2%
--------- --------- --------- ---------
Strip Centers weighted
average 87.1% 12.9% 74.7% 25.3%
--------- --------- --------- ---------
Wholly Owned
Properties 82.3% 17.7% 73.3% 26.7%
Joint Venture
Properties 95.7% 4.3% 80.5% 19.5%
--------- --------- --------- ---------
PRI-managed 83.9% 16.1% 72.9% 27.1%
Non PRI-managed 99.6% 0.4% 97.1% 2.9%
--------- --------- --------- ---------
Same Properties/
Existing 97.0% 3.0% 91.0% 9.0%
New 66.8% 33.2% 54.3% 45.7%
Redevelopment
Properties 0.0% 0.0% 0.0% 0.0%
--------- --------- --------- ---------
PAGE 33
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Retail Portfolio
(Includes Non-Anchor Owned Space)
Q403 % Change
------------------------------------------------ ------------------------------------------------
Additional Additional
Avg Base Avg % Charges Avg Base Avg % Charges psf
Rent psf (1) Rent psf (1) psf (1) Rent psf (1) Rent psf (1) (1)
------------- ------------- ------------- ------------- ------------- -------------
Enclosed Malls weighted
average $21.88 $0.74 $8.16 -7.58% -17.68% -10.78%
Power Centers weighted
average $15.22 $0.06 $3.17 0.41% 34.58% 15.63%
Strip Centers weighted
average $13.81 $0.01 $2.92 2.17% -95.54% 23.91%
------------- ------------- ------------- ------------- ------------- -------------
Retail Portfolio
weighted average (2) $20.60 $0.61 $7.22 7.0% 30.2% 23.0%
------------- ------------- ------------- ------------- ------------- -------------
Wholly Owned Properties (2) $20.48 $0.69 $7.21 16.4% 6.2% 39.9%
Joint Venture Properties $21.08 $0.31 $7.25 2.4% -6.1% 12.4%
------------- ------------- ------------- ------------- ------------- -------------
PRI-managed (2) $21.06 $0.68 $7.66 3.6% 7.1% 9.3%
Non PRI-managed $18.19 $0.26 $4.92 1.6% -1.3% 10.5%
------------- ------------- ------------- ------------- ------------- -------------
Same Properties/Existing $17.71 $0.34 $4.88 -3.3% -36.0% -9.2%
New $21.67 $0.71 $8.09 0.0% 139.8% 12.8%
Redevelopment Properties (2)
$23.61 $1.11 $9.70 11.0% -5.0% 13.0%
------------- ------------- ------------- ------------- ------------- -------------
Q402
------------------------------------------------
Avg Base Additional
Rent Avg % Charges psf
psf (1) Rent psf (1) (1)
------------- ------------- -------------
Enclosed Malls weighted
average $19.77 $1.20 $7.67
Power Centers weighted
average $15.15 $0.04 $2.75
Strip Centers weighted
average $13.51 $0.14 $2.36
------------- ------------- -------------
Retail Portfolio
weighted average (2) $19.25 $0.47 $5.87
------------- ------------- -------------
Wholly Owned Properties (2) $17.59 $0.65 $5.15
Joint Venture Properties $20.59 $0.33 $6.45
------------- ------------- -------------
PRI-managed (2) $20.33 $0.64 $7.00
Non PRI-managed $17.90 $0.27 $4.45
------------- ------------- -------------
Same Properties/Existing $18.32 $0.54 $5.37
New $21.66 $0.30 $7.17
Redevelopment Properties (2)
$21.27 $1.17 $8.58
------------- ------------- -------------
(1) Base rent is actual for Q303. Additional charges and % rent are projections
for 2003.
(2) Magnolia Mall and Prince Georges Plaza are classified as Redevelopment
Properties and are not included in the weighted average.
Occupancy
Q403 Change in % Occupancy
------------------------------------------------- -------------------------------------------------
In-Line In-Line
only In-Line only In-Line
Total w/ Total w/ (Non- (Non- Total w/ Total w/ (Non- (Non-
Anchor % Anchor % Anchor) % Anchor) % Anchor % Anchor % Anchor) % Anchor) %
Leased Available Leased Available Leased Available Leased Available
--------- --------- --------- --------- --------- --------- --------- ---------
Enclosed Malls
weighted average 90.50% 9.50% 87.35% 12.65% -1.19% 1.19% -2.58% 2.58%
Power Centers weighted
average 97.92% 2.08% 96.69% 3.31% -0.06% 0.06% -0.22% 0.22%
Strip Centers weighted
average 94.83% 5.17% 87.16% 12.84% 7.77% -7.77% 12.49% -12.49%
--------- --------- --------- --------- --------- --------- --------- ---------
Retail Portfolio
weighted average (1) 91.5% 8.5% 88.8% 11.2% -1.9% 1.9% -3.1% 3.1%
--------- --------- --------- --------- --------- --------- --------- ---------
Wholly Owned Properties (1) 90.4% 9.6% 87.4% 12.6% 1.1% -1.1% -0.3% 0.3%
Joint Venture Properties 96.9% 3.1% 94.5% 5.5% -0.5% 0.5% -1.0% 1.0%
--------- --------- --------- --------- --------- --------- --------- ---------
PRI-managed (1) 90.8% 9.2% 87.6% 12.4% 0.1% -0.1% -0.5% 0.5%
Non PRI-managed 97.0% 3.0% 95.0% 5.0% -1.1% 1.1% -1.8% 1.8%
--------- --------- --------- --------- --------- --------- --------- ---------
Same Properties/Existing 95.4% 4.6% 94.5% 5.5% 0.6% -0.6% -0.5% 0.5%
New 90.3% 9.7% 86.8% 13.2% 0.2% -0.2% 2.3% -2.3%
Redevelopment Properties (1) 91.1% 8.9% 89.9% 10.1% -3.4% 3.4% 4.1% -4.1%
--------- --------- --------- --------- --------- --------- --------- ---------
Q402
-------------------------------------------------
In-Line
only In-Line
Total w/ Total w/ (Non- (Non-
Anchor % Anchor % Anchor) % Anchor) %
Leased Available Leased Available
--------- --------- --------- ---------
Enclosed Malls
weighted average 91.69% 8.31% 89.93% 10.07%
Power Centers weighted
average 97.98% 2.02% 96.91% 3.09%
Strip Centers weighted
average 87.05% 12.95% 74.68% 25.32%
--------- --------- --------- ---------
Retail Portfolio
weighted average (1) 93.5% 6.5% 91.8% 8.2%
--------- --------- --------- ---------
Wholly Owned Properties (1) 89.3% 10.7% 87.7% 12.3%
Joint Venture Properties 97.4% 2.6% 95.4% 4.6%
--------- --------- --------- ---------
PRI-managed (1) 90.7% 9.3% 88.2% 11.8%
Non PRI-managed 98.1% 1.9% 96.8% 3.2%
--------- --------- --------- ---------
Same Properties/Existing 94.8% 5.2% 95.0% 5.0%
New 90.2% 9.8% 84.5% 15.5%
Redevelopment Properties (1) 94.5% 5.5% 85.8% 14.2%
--------- --------- --------- ---------
(1) Magnolia Mall and Prince Georges Plaza are classified as Redevelopment
Properties and are not included in the weighted average.
(2) Westgate Anchor Pad consists of a 108,100 sf. Bon-Ton Store for which PREIT
receives $307,003/yr ($2.84/sf) and is not included in the Occupancy and
Rent reports.
PAGE 34
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
PREIT Services, LLC/ PREIT-RUBIN Inc.
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
PREIT Services, LLC and PREIT-RUBIN Inc. are the Trust's arms for comprehensive
development and management of retail 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
December 31, 2003
-------------------------------------------------------------------------------------------------------------
Retail Multifamily Office/Industrial TOTAL
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
# sq ft # sq ft # sq ft # sq ft
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Managed
Portfolio
PREIT-Owned (1) 47 29,177,969 - - 4 254,791 51 29,432,760
Non-PREIT Owned
(1) 12 3,340,284 - - 3 757,238 15 4,097,522
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL 59 32,518,253 - - 7 1,012,029 66 33,530,282
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
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 4,257,467 - - - - 7 4,257,467
Non-PREIT Owned - - - - - - - -
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL 7 4,257,467 - - - - 7 4,257,467
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Portfolio
PREIT-Owned 54 33,435,436 - - 4 254,791 58 33,690,227
Non-PREIT Owned 13 3,844,000 - - 4 876,720 17 4,720,720
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL 67 37,279,436 - - 8 1,131,511 75 38,410,947
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
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) 12 3,338,954 - - 3 757,238 15 4,096,192
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL 33 16,729,585 0 - 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 4,254,976 - - - - 7 4,254,976
Non-PREIT Owned - - - - - - - -
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL 7 4,254,976 - - - - 7 4,254,976
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Portfolio
PREIT-Owned 28 17,645,607 - - 4 254,791 32 17,900,398
Non-PREIT Owned 13 3,842,670 - - 4 876,720 17 4,719,390
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL 41 21,488,277 - - 8 1,131,511 49 22,619,788
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
NET GAIN (LOSS) IN CONTRACTS
-------------------------------------------------------------------------------------------------------------
Retail Multifamily Office/Industrial TOTAL
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
# sq ft # sq ft # sq ft # sq ft
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Managed
Portfolio
PREIT-Owned (1) 26 15,787,338 - - - - 26 15,787,338
Non-PREIT Owned (1) - 1,330 - - - - - 1,330
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL 26 15,788,668 - - - - 26 15,788,668
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Leased Portfolio
PREIT-Owned - - - - - - - -
Non-PREIT Owned - - - - - - - -
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL - - - - - - - -
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Asset Managed
Portfolio
PREIT-Owned (1) - 2,491 - - - - - 2,491
Non-PREIT Owned - - - - - - - -
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL - 2,491 - - - - - 2,491
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Portfolio
PREIT-Owned 26 15,789,829 - - - - 26 15,789,829
Non-PREIT Owned - 1,330 - - - - - 1,330
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL 26 15,791,159 - - - - 26 15,791,159
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(1) The increase in PREIT owned GLA resulted from the merger with Crown American
Realty Trust.
PAGE 35
Pennsylvania REIT
FLASH REPORT (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Quarterly Comparison
Financial Statement
Q4 03
(3 months ended 12/31/03)
-------------------------------------------------------------------------------
Corporate/
Other
Retail Multifamily Properties TOTAL % Change
------------- ------------- ------------- ------------- -------------
Real Estate Revenues:
Same Store $20,404,299 $0 $84,770 $20,489,069 3.5%
New 62,955,052 - - 62,955,052 N/A
Redevelopment 6,695,196 - - 6,695,196 N/A
Discontinued Operations - 2,248 - 2,248
- ---------------------------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 90,054,546 2,248 84,770 90,141,564 108.3%
- ---------------------------------------------------------------------------------------------------------------------------------
Operating Expenses (includes minority
interest in properties):
Same Store 5,632,027 - 2,890 5,634,917 8.4%
New 24,433,318 - - 24,433,318 N/A
Redevelopment 2,320,331 - - 2,320,331 N/A
Discontinued Operations - 14,504 14,504 -99.8%
- ---------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 32,385,676 14,504 2,890 32,403,070 120.6%
- ---------------------------------------------------------------------------------------------------------------------------------
NOI:
Same Store 14,772,272 - 81,880 14,854,152 1.7%
New 38,521,734 - - 38,521,734 N/A
Redevelopment 4,374,865 - - 4,374,865 N/A
Discontinued Operations - (12,256) - (12,256) -100.1%
- ---------------------------------------------------------------------------------------------------------------------------------
NOI (2) 57,668,870 (12,256) 81,880 57,738,494 101.9%
- ---------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue - - 4,048,766 4,048,766 -4.4%
Interest Income - - 335,524 335,524 74.8%
General & Administrative
Corporate Payroll - - (9,538,925) (9,538,925) 180.9%
Other G&A Expenses - - (8,461,798) (8,461,798) 180.9%
- ---------------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 57,668,870 (12,256) (13,534,553) 44,122,061 65.8%
- ---------------------------------------------------------------------------------------------------------------------------------
Interest Expense (15,298,177) - (1,033,909) (16,332,086) 48.8%
Depreciation and Amortization (19,148,187) - (12,540) (19,160,727) 155.4%
Gain(loss) on Sale of Interests in RE - 4,457,176 4,457,176 N/A
DISCONTINUED OPERATIONS
Income from Disposed Real Estate - - - - N/A
Minority Interest of O.P. Unitholders - - (580,392) (580,392) N/A
Gain(loss) on Disposition of Discontinued
Operations 194,441 - 194,441 N/A
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - 194,441 (580,392) (385,951) N/A
- ---------------------------------------------------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - N/A
Minority Interest of O.P. Unit Holders - - (1,198,594) (1,198,594) 51.9%
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCOME 23,222,506 4,639,361 (16,359,988) 11,501,879 56.9%
- ---------------------------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate - (4,651,617) - (4,651,617) N/A
Depreciation and Amor. of Real Estate 19,148,187 - (52,460) 19,095,727 156.7%
Dividends on preferred shares (1,533,000) (1,533,000) N/A
FFO Adjustments - - 1,778,986 1,778,986 127.3%
- ---------------------------------------------------------------------------------------------------------------------------------
FFO 42,370,693 (12,256) (16,166,462) 26,191,975 68.4%
- ---------------------------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents (1,055,305) - - (1,055,305) 254.3%
Recurring Capital Expenditures (442,327) - (442,327) -30.6%
Amortization of debt premium (2,933,065) (2,933,065) N/A
- ---------------------------------------------------------------------------------------------------------------------------------
FAD $37,939,996 -$12,256 (16,166,462) $21,761,278 48.9%
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends for Common Shares and O.P Units $15,534,398 66.3%
Share Price (at close) $36.30 39.6%
Weighted Average Number of Shares 28,786,801 75.0%
WA number of Shares and O.P. Units 31,744,396 74.3%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Income/Share $0.35 -21.5%
FFO/Share and O.P. Units $0.83 -3.4%
FAD/Share and O.P. Units $0.69 -14.6%
Dividend/Share and O.P. Units $0.54 5.9%
Q4 02
(3 months ended 12/31/02)
---------------------------------------------------------------
Corporate/
Other
Retail Multifamily Properties TOTAL
------------- ------------- ------------- -------------
Real Estate Revenues:
Same Store $19,722,387 $0 $82,858 $19,805,245
New 2,055,325 - - 2,055,325
Redevelopment 6,493,056 - - 6,493,056
Discontinued Operations - 14,928,033 - 14,928,033
- -----------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 28,270,768 14,928,033 82,858 43,281,659
- -----------------------------------------------------------------------------------------------------------------
Operating Expenses (includes minority
interest in properties):
Same Store 5,194,361 - 3,558 5,197,919
New 959,949 - - 959,949
Redevelopment 2,157,149 - - 2,157,149
Discontinued Operations - 6,372,745 6,372,745
- -----------------------------------------------------------------------------------------------------------------
Total Operating Expenses 8,311,459 6,372,745 3,558 14,687,762
- -----------------------------------------------------------------------------------------------------------------
NOI:
Same Store 14,528,026 - 79,300 14,607,326
New 1,095,376 - - 1,095,376
Redevelopment 4,335,907 - - 4,335,907
Discontinued Operations - 8,555,288 8,555,288
- -----------------------------------------------------------------------------------------------------------------
NOI (2) 19,959,309 8,555,288 79,300 28,593,897
- -----------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue - - 4,233,533 4,233,533
Interest Income - - 191,895 191,895
General & Administrative
Corporate Payroll - - (3,395,954) (3,395,954)
Other G&A Expenses - - (3,012,605) (3,012,605)
- -----------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 19,959,309 8,555,288 (1,903,831) 26,610,766
- -----------------------------------------------------------------------------------------------------------------
Interest Expense (7,306,699) (3,670,036) - (10,976,735)
Depreciation and Amortization (5,074,812) (2,415,300) (12,915) (7,503,027)
Gain(loss) on Sale of Interests in RE - - - -
DISCONTINUED OPERATIONS
Income from Disposed Real Estate (17,217) - - (17,217)
Minority Interest of O.P. Unitholders - - 6,605 6,605
Gain(loss) on Disposition of Discontinued
Operations - - - -
- -----------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS (17,217) - 6,605 (10,612)
- -----------------------------------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) - - -
Minority Interest of O.P. Unit Holders - - (789,137) (789,137)
- -----------------------------------------------------------------------------------------------------------------
NET INCOME 7,560,581 2,469,952 (2,699,278) 7,331,255
- -----------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate - - - -
Depreciation and Amor. of Real Estate 5,074,812 2,415,300 (52,085) 7,438,027
Dividends on preferred shares
FFO Adjustments - - 782,532 782,532
- -----------------------------------------------------------------------------------------------------------------
FFO 12,635,393 4,885,252 (1,968,831) 15,551,814
- -----------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents (297,854) - - (297,854)
Recurring Capital Expenditures (20,930) (616,160) - (637,090)
Amortization of debt premium - - - -
- -----------------------------------------------------------------------------------------------------------------
FAD $12,316,609 $4,269,092 ($1,968,831) $14,616,870
- -----------------------------------------------------------------------------------------------------------------
Dividends for Common Shares and O.P Units $9,343,863
Share Price (at close) $26.00
Weighted Average Number of Shares 16,450,912
WA number of Shares and O.P. Units 18,209,542
- -----------------------------------------------------------------------------------------------------------------
Net Income/Share $0.45
FFO/Share and O.P. Units $0.85
FAD/Share and O.P. Units $0.80
Dividend/Share and O.P. Units $0.51
Balance Sheet
Q4 03
--------------------------------------------------------------------- --------------
Corporate/
Other
Retail Multifamily Properties Total % Change
-------------- -------------- -------------- -------------- --------------
Investment in Real Estate, at cost $2,515,861,018 $- $24,241,202 $2,540,102,220 166.5%
Accumulated Depreciation (107,991,580) - (2,076,771) (110,068,351) -39.0%
Investment in and advances to
Partnership and JVs - - - - -100.0%
Other Assets 295,585,275 - 73,553,486 369,138,761 252.3%
- ---------------------------------------------------------------------------------------------------------------------------------
Total Assets $2,703,454,713 $0 $95,717,917 $2,799,172,630 219.0%
- ---------------------------------------------------------------------------------------------------------------------------------
Mortgage Notes $1,396,262,538 $- $- $1,396,262,538 187.0%
Line of Credit - - 170,000,000 170,000,000 30.0%
Acquisition Term Loan & Unsecured
Line of Credit - - - - N/A
Other Liabilities 51,945,310 - 44,679,642 96,624,952 143.7%
- ---------------------------------------------------------------------------------------------------------------------------------
Total Liabilities $1,448,207,848 $0 $214,679,642 $1,662,887,490 153.1%
- ---------------------------------------------------------------------------------------------------------------------------------
Minority Interest $8,590,979 - $104,060,548 $112,651,527 246.9%
Total Shareholders Equity - - 1,023,633,613 1,023,633,613 444.4%
- ---------------------------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareholder
Equity $1,456,798,827 $0 $1,342,373,803 $2,799,172,630 219.0%
Q4 02
---------------------------------------------------------------------
Corporate/
Other
Retail Multifamily Properties Total
-------------- -------------- -------------- --------------
Investment 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)
Investment in and advances to
Partnership and JVs - - 105,309 105,309
Other Assets 50,941,989 12,728,458 41,114,121 104,784,568
- -----------------------------------------------------------------------------------------------------------------
Total Assets $592,166,742 $218,717,763 $66,524,001 $877,408,506
- -----------------------------------------------------------------------------------------------------------------
Mortgage Notes $280,092,311 $206,387,459 $- $486,479,770
Line of Credit 94,712,082 2,500,000 33,587,919 130,800,000
Acquisition Term Loan & Unsecured
Line of Credit - - - -
Other Liabilities 14,288,005 5,270,638 20,085,119 39,643,762
- -----------------------------------------------------------------------------------------------------------------
Total Liabilities $389,092,398 $214,158,097 $53,673,038 $656,923,532
- -----------------------------------------------------------------------------------------------------------------
Minority Interest $126,715 - $32,345,722 $32,472,437
Total Shareholders Equity - - 188,012,537 188,012,537
- -----------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareholder
Equity $389,219,113 $214,158,097 $274,031,297 $877,408,506
Ratios
Q4 03 Change Q4 02
--------------- -------------- -----------------
NOI/Investment in Real Estate 2.3% -0.7% 3.0%
Total Dividends/Total FFO 59.3% -0.8% 60.1%
Dividends/FFO per share 65.4% 5.7% 59.7%
NOTE: Reconciliation to GAAP is on pages 38 to 43.
PAGE 36
Pennsylvania REIT
FLASH REPORT (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Yearly Comparison
Financial Statement
CY 12/31/03
(12 months ended 12/31/03)
---------------------------------------------------------------------
Corporate/
Other
Retail Multifamily Properties TOTAL % Change
-------------- -------------- -------------- -------------- --------------
Real Estate Revenues:
Same Store $63,595,386 $0 $339,018 $63,934,404 3.0%
New 123,221,635 - - 123,221,635 N/A
Redevelopment 22,684,353 - - 22,684,353 N/A
Discontinued Operations - 26,897,382 - 26,897,382
-------------- -------------- -------------- -------------- --------------
Total Real Estate Revenues 209,501,373 26,897,382 339,018 236,737,773 49.5%
-------------- -------------- -------------- -------------- --------------
Operating Expenses (includes minority interest in properties):
Same Store 17,134,830 - 15,789 17,150,619 11.7%
New 50,739,722 - - 50,739,722 N/A
Redevelopment 7,908,329 - - 7,908,329 N/A
Discontinued Operations - 12,430,545 12,430,545 -48.4%
-------------- -------------- -------------- -------------- --------------
Total Operating Expenses 75,782,881 12,430,545 15,789 88,229,215 67.5%
-------------- -------------- -------------- -------------- --------------
NOI:
Same Store 46,460,556 - 323,229 46,783,785 0.1%
New 72,481,913 - - 72,481,913 N/A
Redevelopment 14,776,024 - - 14,776,024 N/A
Discontinued Operations - 14,466,837 - 14,466,837 -56.8%
-------------- -------------- -------------- -------------- --------------
NOI (2) 133,718,492 14,466,837 323,229 148,508,558 40.6%
-------------- -------------- -------------- -------------- --------------
OTHER INCOME (EXPENSES):
Management Company Revenue - - 11,994,203 11,994,203 9.0%
Interest Income - - 887,180 887,180 24.8%
General & Administrative
Corporate Payroll - - (20,830,685) (20,830,685) 47.3%
Other G&A Expenses - - (19,336,946) (19,336,946) 82.3%
-------------- -------------- -------------- -------------- --------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 133,718,492 14,466,837 (26,963,019) 121,222,310 30.9%
-------------- -------------- -------------- -------------- --------------
Interest Expense (39,240,910) (5,652,058) (7,466,709) (52,359,677) 25.6%
Depreciation and Amortization (42,490,065) (2,454,834) (51,158) (44,996,057) 55.9%
Gain(loss) on Sale of Interests in RE 1,111,692 15,087,618 16,199,310 N/A
DISCONTINUED OPERATIONS
Income from Disposed Real Estate - - - - N/A
Minority Interest in properties
Minority Interest of O.P. Unitholders - - (18,848,730) (18,848,730) N/A
Gain(loss) on Disposition of
Discontinued Operations 178,121,005 - 178,121,005 N/A
-------------- -------------- -------------- -------------- --------------
TOTAL DISCONTINUED OPERATIONS - 178,121,005 (18,848,730) 159,272,275 N/A
-------------- -------------- -------------- -------------- --------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - N/A
Minority Interest of O.P. Unit
Holders - - (3,298,010) (3,298,010) 161.2%
-------------- -------------- -------------- -------------- --------------
NET INCOME 53,099,209 199,568,568 (56,627,626) 196,040,151 727.9%
-------------- -------------- -------------- -------------- --------------
Gain on Sale of Real Estate (1,111,692) (193,208,623) - (194,320,315) N/A
Depreciation and Amor. of Real Estate 42,490,065 2,454,834 (208,842) 44,736,057 56.4%
Dividends on preferred shares (1,533,000) (1,533,000) N/A
FFO Adjustments - - 22,146,740 22,146,740 643.9%
-------------- -------------- -------------- -------------- --------------
FFO 94,477,582 8,814,779 (36,222,728) 67,069,633 31.1%
-------------- -------------- -------------- -------------- --------------
Adj. Straight Lining of Base Rents (2,805,547) - - (2,805,547) 169.3%
Recurring Capital Expenditures (646,468) (1,285,473) - (1,931,941) -33.5%
Amortization of debt premium (5,940,175) (5,940,175) N/A
-------------- -------------- -------------- -------------- --------------
FAD $85,085,392 $7,529,306 (36,222,728) $56,391,970 19.4%
-------------- -------------- -------------- -------------- --------------
Dividends for Common Shares and O.P
Units $46,892,620 27.0%
Share Price (at close) $36.30 39.6%
Weighted Average Number of Shares 20,389,577 26.2%
WA number of Shares and O.P. Units 22,693,026 26.3%
-------------- --------------
Net Income/Share $9.54 551.2%
FFO/Share and O.P. Units $2.96 3.8%
FAD/Share and O.P. Units $2.48 -5.5%
Dividend/Share and O.P. Units $2.07 1.5%
-------------- --------------
CY 12/31/02
(12 months ended 12/31/02)
---------------------------------------------------------------------
Corporate/
Other
Retail Multifamily Properties TOTAL
-------------- -------------- -------------- --------------
Real Estate Revenues:
Same Store $61,763,751 $0 $328,878 $62,092,629
New 16,486,521 - - 16,486,521
Redevelopment 22,143,145 - - 22,143,145
Discontinued Operations - 57,582,151 - 57,582,151
-------------- -------------- -------------- --------------
Total Real Estate Revenues 100,393,417 57,582,151 328,878 158,304,446
-------------- -------------- -------------- --------------
Operating Expenses (includes minority interest in properties):
Same Store 15,329,244 - 23,477 15,352,721
New 5,607,334 - - 5,607,334
Redevelopment 7,597,365 - - 7,597,365
Discontinued Operations - 24,103,080 24,103,080
-------------- -------------- -------------- --------------
Total Operating Expenses 28,533,943 24,103,080 23,477 52,660,500
-------------- -------------- -------------- --------------
NOI:
Same Store 46,434,507 - 305,401 46,739,908
New 10,879,187 - - 10,879,187
Redevelopment 14,545,780 - - 14,545,780
Discontinued Operations - 33,479,071 33,479,071
-------------- -------------- -------------- --------------
NOI (2) 71,859,474 33,479,071 305,401 105,643,946
-------------- -------------- -------------- --------------
OTHER INCOME (EXPENSES):
Management Company Revenue - - 11,002,570 11,002,570
Interest Income - - 710,687 710,687
General & Administrative
Corporate Payroll - - (14,137,939) (14,137,939)
Other G&A Expenses - - (10,608,902) (10,608,902)
-------------- -------------- -------------- --------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 71,859,474 33,479,071 (12,728,183) 92,610,362
-------------- -------------- -------------- --------------
Interest Expense (27,541,955) (14,258,905) 103,931 (41,696,929)
Depreciation and Amortization (19,502,954) (9,302,914) (51,660) (28,857,528)
Gain(loss) on Sale of Interests in RE 4,085,164 - - 4,085,164
DISCONTINUED OPERATIONS
Income from Disposed Real Estate 151,875 - - 151,875
Minority Interest in properties
Minority Interest of O.P. Unitholders - - (1,352,412) (1,352,412)
Gain(loss) on Disposition of
Discontinued Operations - - - -
-------------- -------------- -------------- --------------
TOTAL DISCONTINUED OPERATIONS 151,875 - (1,352,412) (1,200,537)
-------------- -------------- -------------- --------------
Extraordinary item(Loss on early
extinguishment of debt) - - -
Minority Interest of O.P. Unit
Holders - - (1,262,556) (1,262,556)
-------------- -------------- -------------- --------------
NET INCOME 29,051,604 9,917,252 (15,290,880) 23,677,976
-------------- -------------- -------------- --------------
Gain on Sale of Real Estate (4,085,164) - - (4,085,164)
Depreciation and Amor. of Real Estate 19,502,954 9,302,914 (208,340) 28,597,528
Dividends on preferred shares
FFO Adjustments - - 2,976,919 2,976,919
-------------- -------------- -------------- --------------
FFO 44,469,394 19,220,166 (12,522,301) 51,167,259
-------------- -------------- -------------- --------------
Adj. Straight Lining of Base Rents (1,041,694) - - (1,041,694)
Recurring Capital Expenditures (113,759) (2,789,878) - (2,903,637)
Amortization of debt premium - - - -
-------------- -------------- -------------- --------------
FAD $43,313,941 $16,430,288 ($12,522,301) $47,221,928
-------------- -------------- -------------- --------------
Dividends for Common Shares and O.P
Units $36,909,429
Share Price (at close) $26.00
Weighted Average Number of Shares 16,162,327
WA number of Shares and O.P. Units 17,967,106
--------------
Net Income/Share $1.47
FFO/Share and O.P. Units $2.85
FAD/Share and O.P. Units $2.63
Dividend/Share and O.P. Units $2.04
--------------
Ratios
CY 12/31/03 Change CY 12/31/02
-------------------- -------------------- --------------------
NOI/Investment in Real Estate 5.8% -5.2% 11.1%
Total Dividends/Total FFO 69.9% -2.2% 72.1%
Dividends/FFO per share 70.0% -1.6% 71.6%
NOTE: Reconciliation to GAAP is on pages 38 to 43.
PAGE 37
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
BALANCE SHEET-RECONCILIATION TO GAAP
(Wholly Owned vs. JVs)
December 31, 2003
--------------------------------------------------------------------------------------------
Combined Adjustments to Assets Held
TOTAL (1) Equity Method Subtotal for Sale TOTAL
--------------- --------------- --------------- --------------- ---------------
ASSETS
Investments in Real Estate, at
cost
Retail Properties $2,515,861,018 $(133,107,107) $2,382,753,911 $(118,887,475) $2,263,866,436
Multifamily Properties - - - - -
Industrial Properties 2,504,211 - 2,504,211 - 2,504,211
Construction In Progress 21,736,991 (1,506,178) 20,230,813 - 20,230,813
--------------- --------------- --------------- --------------- ---------------
TOTAL INVESTMENTS IN REAL ESTATE 2,540,102,220 (134,613,285) 2,405,488,935 (118,887,475) 2,286,601,460
Accumulated Depreciation (110,068,351) 31,652,085 (78,416,266) - (78,416,266)
--------------- --------------- --------------- --------------- ---------------
Net Real Estate 2,430,033,869 (102,961,200) 2,327,072,669 (118,887,475) 2,208,185,194
--------------- --------------- --------------- --------------- ---------------
Investment in and advances to
Partnerships and JVs - 13,108,951 13,108,951 - 13,108,951
--------------- --------------- --------------- --------------- ---------------
2,430,033,869 (89,852,249) 2,340,181,620 (118,887,475) 2,221,294,145
--------------- --------------- --------------- --------------- ---------------
Allowance for Possible Losses
--------------- --------------- --------------- --------------- ---------------
2,430,033,869 (89,852,249) 2,340,181,620 (118,887,475) 2,221,294,145
--------------- --------------- --------------- --------------- ---------------
Other Assets:
Cash and Cash Equivalents 52,534,598 (3,905,956) 48,628,642 48,628,642
Rents and Other Receivables 35,665,968 (7,991,132) 27,674,836 - 27,674,836
Assets held for sale 37,686,662 - 37,686,662 118,887,475 156,574,137
Intangible Assets (2) 181,544,375 - 181,544,375 - 181,544,375
Deferred Costs, Prepaid Taxes &
Exp. & Other Assets 61,707,158 (11,942,818) 49,764,340 49,764,340
--------------- --------------- --------------- --------------- ---------------
TOTAL OTHER ASSETS 369,138,761 (23,839,906) 345,298,855 118,887,475 464,186,330
--------------- --------------- --------------- --------------- ---------------
TOTAL ASSETS 2,799,172,630 (113,692,155) 2,685,480,475 - 2,685,480,475
=============== =============== =============== =============== ===============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Mortgage Notes Payable 1,320,774,295 (109,581,659) 1,211,192,636 (61,138,707) 1,150,053,929
Mortgage Debt Premium (3) 75,488,243 - 75,488,243 (4,361,443) 71,126,800
Bank Loans Payable 170,000,000 - 170,000,000 - 170,000,000
Acquisition Term Loan & Unsecured
Line of Credit - - - - -
Construction Loans - - - - -
Assets held for sale 5,840,385 - 5,840,385 65,500,150 71,340,535
Other Liabilities (4) 90,784,568 (4,110,496) 86,674,072 86,674,072
--------------- --------------- --------------- --------------- ---------------
TOTAL LIABILITIES 1,662,887,491 (113,692,155) 1,549,195,336 - 1,549,195,336
--------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- ---------------
Minority Interest 112,651,526 - 112,651,526 - 112,651,526
--------------- --------------- --------------- --------------- ---------------
Shareholders' Equity:
Shares of Beneficial Interest at
$1 Par 35,544,280 - 35,544,280 - 35,544,280
Preferred Shares $0.01 Par 24,750 - 24,750 - 24,750
Capital Contributed in Excess of
Par 877,444,615 - 877,444,615 - 877,444,615
Restricted Stock (3,195,777) - (3,195,777) - (3,195,777)
Other Comprehensive Income (2,005,840) - (2,005,840) - (2,005,840)
Retained Earnings (Distributions
in Excess of Net Income) 115,821,585 - 115,821,585 - 115,821,585
--------------- --------------- --------------- --------------- ---------------
TOTAL SHAREHOLDERS' EQUITY 1,023,633,613 - 1,023,633,613 - 1,023,633,613
--------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- ---------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $2,799,172,630 $(113,692,155) $2,685,480,475 $- $2,685,480,475
=============== =============== =============== =============== ===============
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 (2) 55,957,597 - 55,957,597 - 55,957,597
Deferred Costs, Prepaid Taxes &
Exp. & Other Assets 53,730,566 (12,102,884) 41,627,682 - 41,627,682
--------------- --------------- --------------- --------------- ---------------
TOTAL OTHER ASSETS 175,110,969 (25,786,599) 149,324,370 - 149,324,370
--------------- --------------- --------------- --------------- ---------------
TOTAL ASSETS 1,389,003,187 (122,991,681) 1,266,011,506 - 1,266,011,506
=============== =============== =============== =============== ===============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Mortgage Notes Payable 739,061,360 (118,525,862) 620,535,498 - 620,535,498
Mortgage Debt Premium (3)
Bank Loans Payable - - - - -
Acquisition Term Loan & Unsecured
Line of Credit - - - - -
Construction Loans - - - - -
Assets held for sale 951,750 (36,458) 915,292 - 915,292
Other Liabilities (4) 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
Preferred Shares $0.01 Par
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 (2) 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
Mortgage Debt Premium (3)
Bank Loans Payable 130,800,000 - 130,800,000 - 130,800,000
Acquisition Term Loan & Unsecured
Line of Credit - - - - -
Construction Loans - - - - -
Assets held for sale - - - - -
Other Liabilities (4) 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
Preferred Shares $0.01 Par
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
=============== =============== =============== =============== ===============
(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) Includes value of acquired in-place leases and above-market value of leases
recorded in connection with the acquisition of properties in 2002 and 2003.
Purchase accounting rules require a purchaser to separately value the leases
that are in place at the acquisition date, as well as the above- or
below-market values of the leases.
(3) Represents premium that is recorded in connection with debt assumed in
connection with property purchases. The debt is market to market at the
acquisition date and the premium is amortized through interest expense over
the remaining term of the debt.
(4) 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.
PAGE 38
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
INCOME STATEMENT-RECONCILIATION TO GAAP (1)
Quarterly Comparison
(Wholly Owned vs. JV's)
Q4 03
(3 months ended 12/31/03)
--------------------------------------------------------------------------- ------------
Adjustments
to
Combined Equity Assets Held TOTAL %
TOTAL (3) Method Subtotal for Sale Total CHANGE
------------ ------------ ------------ ------------ ------------ ------------
REAL ESTATE OPERATING
REVENUES
Base Rents (Net of
Vacancies) $56,257,974 $(5,419,424) $50,838,550 $(2,578,149) $48,260,401 282.2%
Straight-Lining of Base
Rents 1,055,305 3,327 1,058,632 $(25,787) 1,032,845 321.9%
Percentage Rents 3,490,813 (15,832) 3,474,981 $(141,500) 3,333,481 225.1%
Lease Termination 744,306 - 744,306 (45,556) 698,750 -856.8%
Expense Recoveries &
Other Income 28,593,166 (2,222,547) 26,370,619 (1,338,280) 25,032,339 453.5%
------------ ------------ ------------ ------------ ------------ ------------
TOTAL REVENUES 90,141,564 (7,654,476) 82,487,088 (4,129,272) 78,357,816 327.6%
------------ ------------ ------------ ------------ ------------ ------------
REAL ESTATE OPERATING
EXPENSES
Operating and
Maintenance 24,323,764 (1,941,169) 22,382,595 (1,581,444) 20,801,151 486.4%
Real Estate Taxes 7,695,705 (669,198) 7,026,507 (376,420) 6,650,087 436.3%
Minority Interest in
properties 383,601 - 383,601 (7,601) 376,000
------------ ------------ ------------ ------------ ------------ ------------
TOTAL EXPENSES 32,403,070 (2,610,367) 29,792,703 (1,965,465) 27,827,238 481.3%
------------ ------------ ------------ ------------ ------------ ------------
NET OPERATING INCOME 57,738,494 (5,044,109) 52,694,385 (2,163,807) 50,530,578 273.2%
------------ ------------ ------------ ------------ ------------ ------------
OTHER INCOME (EXPENSES)
Management Company
Revenue 4,048,766 - 4,048,766 4,048,766 -4.4%
Interest Income $335,524 - 335,524 335,524 74.8%
General &
Administrative:
Corporate Payroll (9,538,925) - (9,538,925) (9,538,925) 180.9%
Other G&A Expenses (8,461,798) - (8,461,798) (8,461,798) 180.9%
------------ ------------ ------------ ------------ ------------ ------------
Earnings before interest
expenses, taxes,
depreciation and
amortization 44,122,061 (5,044,109) 39,077,952 (2,163,807) 36,914,145 219.4%
------------ ------------ ------------ ------------ ------------ ------------
Interest Expense (2) (16,332,086) 2,190,986 (14,141,100) 449,311 (13,691,789) 217.4%
Depreciation &
Amortization (19,160,727) 1,243,672 (17,917,055) - (17,917,055) 393.8%
------------ ------------ ------------ ------------ ------------ ------------
TOTAL OTHER INCOME
(EXPENSES) (35,492,813) 3,434,658 (32,058,155) 449,311 (31,608,844) 298.0%
------------ ------------ ------------ ------------ ------------ ------------
Equity in Income of
partnerships and JVs - 1,609,451 1,609,451 1,609,451
------------ ------------ ------------ ------------ ------------ ------------
Gains (losses) on sales
of interests in Real
Estate 4,457,176 - 4,457,176 - 4,457,176 N/A
------------ ------------ ------------ ------------ ------------ ------------
Income before Minority
Interest 13,086,424 - 13,086,424 (1,714,496) 11,371,928 93.2%
------------ ------------ ------------ ------------ ------------ ------------
Minority Interest of
O.P. Unitholders (1,198,594) - (1,198,594) - (1,198,594) 51.9%
------------ ------------ ------------ ------------ ------------ ------------
Income from Operations 11,887,830 - 11,887,830 (1,714,496) 10,173,334 99.6%
------------ ------------ ------------ ------------ ------------ ------------
Discontinued Operations:
Income from Discontinued
Operations - - - 1,722,097 1,722,097 -22.7%
Equity in Income of
partnerships and JVs -
Minority interest in
properties (7,601) (7,601)
Minority Interest of
O.P. Unitholders (580,392) - (580,392) (580,392) N/A
Gain (losses) on
Disposition of
Discontinued Operations 194,441 - 194,441 194,441 N/A
------------ ------------ ------------ ------------ ------------ ------------
TOTAL DISCONTINUED
OPERATIONS (385,951) - (385,951) 1,714,496 1,328,545 N/A
------------ ------------ ------------ ------------ ------------ ------------
Extraordinary item(Loss
on early extinguishment
of debt) - - - - - N/A
------------ ------------ ------------ ------------ ------------ ------------
NET INCOME $11,501,879 $- $11,501,879 $- $11,501,879 56.9%
------------ ------------ ------------ ------------ ------------ ------------
Q4 02
(3 months ended 12/31/02)
---------------------------------------------------------------------------
Adjustments
to
Combined Equity Assets Held
TOTAL (3) Method Subtotal for Sale Total
------------ ------------ ------------ ------------ ------------
REAL ESTATE OPERATING
REVENUES
Base Rents (Net of
Vacancies) $33,588,388 $(7,994,055) $25,594,333 $(12,967,473) $12,626,860
Straight-Lining of Base
Rents 297,854 (53,050) 244,804 - 244,804
Percentage Rents 1,268,924 (243,602) 1,025,322 1,025,322
Lease Termination (1,538) (36,000) (37,538) (54,791) (92,329)
Expense Recoveries &
Other Income 8,128,031 (3,032,121) 5,095,910 (573,577) 4,522,333
------------ ------------ ------------ ------------ ------------
TOTAL REVENUES 43,281,659 (11,358,828) 31,922,831 (13,595,841) 18,326,990
------------ ------------ ------------ ------------ ------------
REAL ESTATE OPERATING
EXPENSES
Operating and
Maintenance 11,246,386 (3,232,048) 8,014,338 (4,467,242) 3,547,096
Real Estate Taxes 3,441,376 (887,884) 2,553,492 (1,313,385) 1,240,107
Minority Interest in
properties
------------ ------------ ------------ ------------ ------------
TOTAL EXPENSES 14,687,762 (4,119,932) 10,567,830 (5,780,627) 4,787,203
------------ ------------ ------------ ------------ ------------
NET OPERATING INCOME 28,593,897 (7,238,896) 21,355,001 (7,815,214) 13,539,787
------------ ------------ ------------ ------------ ------------
OTHER INCOME (EXPENSES)
Management Company
Revenue 4,233,533 - 4,233,533 - 4,233,533
Interest Income 191,895 - 191,895 - 191,895
General &
Administrative:
Corporate Payroll (3,395,954) - (3,395,954) - (3,395,954)
Other G&A Expenses (3,012,605) - (3,012,605) - (3,012,605)
------------ ------------ ------------ ------------ ------------
Earnings before interest
expenses, taxes,
depreciation and
amortization 26,610,766 (7,238,896) 19,371,870 (7,815,214) 11,556,656
------------ ------------ ------------ ------------ ------------
Interest Expense (2) (10,976,735) 3,337,204 (7,639,531) 3,326,139 (4,313,392)
Depreciation &
Amortization (7,503,027) 1,630,536 (5,872,491) 2,244,076 (3,628,415)
------------ ------------ ------------ ------------ ------------
TOTAL OTHER INCOME
(EXPENSES) (18,479,762) 4,967,740 (13,512,022) 5,570,215 (7,941,807)
------------ ------------ ------------ ------------ ------------
Equity in Income of
partnerships and JVs 2,271,156 2,271,156 2,271,156
------------ ------------ ------------ ------------ ------------
Gains (losses) on sales
of interests in Real
Estate - - - - -
------------ ------------ ------------ ------------ ------------
Income before Minority
Interest 8,131,004 - 8,131,004 (2,244,999) 5,886,005
------------ ------------ ------------ ------------ ------------
Minority Interest of
O.P. Unitholders (789,137) - (789,137) - (789,137)
------------ ------------ ------------ ------------ ------------
Income from Operations 7,341,867 - 7,341,867 (2,244,999) 5,096,868
------------ ------------ ------------ ------------ ------------
Discontinued Operations:
Income from Discontinued
Operations (17,217) - (17,217) 2,244,999 2,227,782
Equity in Income of
partnerships and JVs -
Minority interest in
properties
Minority Interest of
O.P. Unitholders 6,605 - 6,605 - 6,605
Gain (losses) on
Disposition of
Discontinued Operations - - - - -
------------ ------------ ------------ ------------ ------------
TOTAL DISCONTINUED
OPERATIONS (10,612) - (10,612) 2,244,999 2,234,387
------------ ------------ ------------ ------------ ------------
Extraordinary item(Loss
on early extinguishment
of debt) - - - - -
------------ ------------ ------------ ------------ ------------
NET INCOME $7,331,255 $- $7,331,255 $- $7,331,255
------------ ------------ ------------ ------------ ------------
(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 $338,458 not included in the quarter ended 12/31/03 and $400,079 not
included in the quarter ended 12/31/02.
(3) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's
share of the Total Revenues and Expenses of the underlying properties. The
Company calculates the "gross up" by applying its percentage ownership
interest to the historical financial statements of its equity method
investments.
PAGE 39
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
INCOME STATEMENT-RECONCILIATION TO GAAP (1)
Yearly Comparison
(Wholly Owned vs. JV's) CY12/31/03
(12 months ended 12/31/03)
------------------------------------------------------------------------------- ------------
Adjustments
Combined to Equity Assets Held TOTAL %
TOTAL (3) Method Subtotal for Sale Total CHANGE
------------- ------------- ------------- ------------- ------------- -------------
REAL ESTATE OPERATING
REVENUES
Base Rents (Net of Vacancies) $162,396,776 $(26,669,101) $135,727,675 $(26,160,683) $109,566,992 142.3%
Straight-Lining of Base Rents 2,805,547 (172,194) 2,633,353 (25,787) 2,607,566 225.0%
Percentage Rents 4,765,061 (342,437) 4,422,624 (141,500) 4,281,124 119.8%
Lease Termination 1,166,949 (10,995) 1,155,954 (171,325) 984,629 30.5%
Expense Recoveries & Other
Income 65,603,440 (10,135,508) 55,467,932 (2,391,963) 53,075,969 263.1%
------------- ------------- ------------- ------------- ------------- -------------
TOTAL REVENUES 236,737,773 (37,330,235) 199,407,538 (28,891,258) 170,516,280 169.2%
------------- ------------- ------------- ------------- ------------- -------------
REAL ESTATE OPERATING
EXPENSES
Operating and Maintenance 65,908,071 (10,472,504) 55,435,567 (10,683,544) 44,752,023 274.7%
Real Estate Taxes 21,419,626 (3,174,423) 18,245,203 (2,658,064) 15,587,139 260.6%
Minority Interest in
properties 901,518 - 901,518 (7,601) 893,917
------------- ------------- ------------- ------------- ------------- -------------
TOTAL EXPENSES 88,229,215 (13,646,927) 74,582,288 (13,349,209) 61,233,079 276.5%
------------- ------------- ------------- ------------- ------------- -------------
NET OPERATING INCOME 148,508,558 (23,683,308) 124,825,250 (15,542,049) 109,283,201 132.1%
------------- ------------- ------------- ------------- ------------- -------------
OTHER INCOME (EXPENSES)
Management Company Revenue 11,994,203 - 11,994,203 11,994,203 9.0%
Interest Income $887,180 - 887,180 887,180 24.8%
General & Administrative:
Corporate Payroll (20,830,685) - (20,830,685) (20,830,685) 47.3%
Other G&A Expenses (19,336,946) - (19,336,946) (19,336,946) 82.3%
------------- ------------- ------------- ------------- ------------- -------------
Earnings before interest
expenses, taxes,
depreciation and
amortization 121,222,310 (23,683,308) 97,539,002 (15,542,049) 81,996,953 140.9%
------------- ------------- ------------- ------------- ------------- -------------
Interest Expense (2) (52,359,677) 11,381,104 (40,978,573) 5,660,310 (35,318,263) 129.7%
Depreciation & Amortization (44,996,057) 5,071,443 (39,924,614) 2,308,553 (37,616,061) 190.0%
------------- ------------- ------------- ------------- ------------- -------------
TOTAL OTHER INCOME (EXPENSES) (97,355,734) 16,452,547 (80,903,187) 7,968,863 (72,934,324) 157.3%
------------- ------------- ------------- ------------- ------------- -------------
Equity in Income of
partnerships and JVs - 7,230,761 7,230,761 7,230,761
------------- ------------- ------------- ------------- ------------- -------------
Gains (losses) on sales of
interests in Real Estate 16,199,310 - 16,199,310 - 16,199,310 N/A
------------- ------------- ------------- ------------- ------------- -------------
Income before Minority
Interest 40,065,886 - 40,065,886 (7,573,186) 32,492,700 147.2%
------------- ------------- ------------- ------------- ------------- -------------
Minority Interest of O.P.
Unitholders (3,298,010) - (3,298,010) - (3,298,010) 161.2%
------------- ------------- ------------- ------------- ------------- -------------
Income from Operations 36,767,876 - 36,767,876 (7,573,186) 29,194,690 145.7%
------------- ------------- ------------- ------------- ------------- -------------
Discontinued Operations:
Income from Discontinued
Operations - - - 7,580,787 7,580,787 -16.4%
Equity in Income of
partnerships and JVs -
Minority Interest in
properties (7,601) (7,601)
Minority Interest of O.P.
Unitholders (18,848,730) - (18,848,730) (18,848,730) N/A
Gain (losses) on Disposition
of Discontinued Operations 178,121,005 - 178,121,005 178,121,005 N/A
------------- ------------- ------------- ------------- ------------- -------------
TOTAL DISCONTINUED OPERATIONS 159,272,275 - 159,272,275 7,573,186 166,845,461 N/A
------------- ------------- ------------- ------------- ------------- -------------
Extraordinary item(Loss on
early extinguishment of
debt) - - - - - N/A
------------- ------------- ------------- ------------- ------------- -------------
NET INCOME $196,040,151 $- $196,040,151 $- $196,040,151 727.9%
------------- ------------- ------------- ------------- ------------- -------------
CY 12/31/02
(12 months ended 12/31/02)
-------------------------------------------------------------------------------
Adjustments
Combined to Equity Assets Held
TOTAL (3) Method Subtotal for Sale Total
------------- ------------- ------------- ------------- -------------
REAL ESTATE OPERATING
REVENUES
Base Rents (Net of Vacancies) $125,535,420 $(31,701,490) $93,833,930 $(48,614,605) $45,219,325
Straight-Lining of Base Rents 1,041,694 (239,348) 802,346 - 802,346
Percentage Rents 2,519,565 (571,784) 1,947,781 1,947,781
Lease Termination 1,131,379 (97,132) 1,034,247 (279,945) 754,302
Expense Recoveries & Other
Income 28,076,388 (11,095,567) 16,980,821 (2,363,756) 14,617,065
------------- ------------- ------------- ------------- -------------
TOTAL REVENUES 158,304,446 (43,705,321) 114,599,125 (51,258,306) 63,340,819
------------- ------------- ------------- ------------- -------------
REAL ESTATE OPERATING
EXPENSES
Operating and Maintenance 40,023,036 (11,529,888) 28,493,148 (16,550,502) 11,942,646
Real Estate Taxes 12,637,464 (3,583,017) 9,054,447 (4,731,738) 4,322,709
Minority Interest in
properties
------------- ------------- ------------- ------------- -------------
TOTAL EXPENSES 52,660,500 (15,112,905) 37,547,595 (21,282,240) 16,265,355
------------- ------------- ------------- ------------- -------------
NET OPERATING INCOME 105,643,946 (28,592,416) 77,051,530 (29,976,066) 47,075,464
------------- ------------- ------------- ------------- -------------
OTHER INCOME (EXPENSES)
Management Company Revenue 11,002,570 - 11,002,570 - 11,002,570
Interest Income 710,687 - 710,687 - 710,687
General & Administrative:
Corporate Payroll (14,137,939) - (14,137,939) - (14,137,939)
Other G&A Expenses (10,608,902) - (10,608,902) - (10,608,902)
------------- ------------- ------------- ------------- -------------
Earnings before interest
expenses, taxes,
depreciation and
amortization 92,610,362 (28,592,416) 64,017,946 (29,976,066) 34,041,880
------------- ------------- ------------- ------------- -------------
Interest Expense (2) (41,696,929) 13,697,011 (27,999,918) 12,622,369 (15,377,549)
Depreciation & Amortization (28,857,528) 7,446,295 (21,411,233) 8,442,297 (12,968,936)
------------- ------------- ------------- ------------- -------------
TOTAL OTHER INCOME (EXPENSES) (70,554,457) 21,143,306 (49,411,151) 21,064,666 (28,346,485)
------------- ------------- ------------- ------------- -------------
Equity in Income of
partnerships and JVs 7,449,110 7,449,110 7,449,110
------------- ------------- ------------- ------------- -------------
Gains (losses) on sales of
interests in Real Estate - - - - -
------------- ------------- ------------- ------------- -------------
Income before Minority
Interest 22,055,905 - 22,055,905 (8,911,400) 13,144,505
------------- ------------- ------------- ------------- -------------
Minority Interest of O.P.
Unitholders (1,262,556) - (1,262,556) - (1,262,556)
------------- ------------- ------------- ------------- -------------
Income from Operations 20,793,349 - 20,793,349 (8,911,400) 11,881,949
------------- ------------- ------------- ------------- -------------
Discontinued Operations:
Income from Discontinued
Operations 151,875 - 151,875 8,911,400 9,063,275
Equity in Income of
partnerships and JVs -
Minority Interest in
properties
Minority Interest of O.P.
Unitholders (1,352,412) - (1,352,412) - (1,352,412)
Gain (losses) on Disposition
of Discontinued Operations 4,085,164 - 4,085,164 - 4,085,164
------------- ------------- ------------- ------------- -------------
TOTAL DISCONTINUED OPERATIONS 2,884,627 - 2,884,627 8,911,400 11,796,027
------------- ------------- ------------- ------------- -------------
Extraordinary item(Loss on
early extinguishment of
debt) - - - - -
------------- ------------- ------------- ------------- -------------
NET INCOME $23,677,976 $- $23,677,976 $- $23,677,976
------------- ------------- ------------- ------------- -------------
(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 $1,407,832 not included in the year ended 12/31/03 and $1,722,485 not
included in the year ended 12/31/02.
(3) Includes PREIT's percent of JVs that is "grossed up" to reflect the Trust's
share of the Total Revenues and Expenses of the underlying properties. The
Company calculates the "gross up" by applying its percentage ownership
interest to the historical financial statements of its equity method
investments.
PAGE 40
Pennsylvania REIT
FLASH REPORT-RECONCILIATION TO GAAP (December 31, 2003)
Quarterly Comparison
Financial Statement
Q4 03
(3 months ended 12/31/03)
-----------------------------------------------------------------------------------
Adjustments
Combined to Equity Assets Held
TOTAL Method Subtotal for Sale Total
------------- ------------- ------------- ------------- -------------
Real Estate Revenues:
Same Store $20,489,069 (7,654,476) $12,834,593 - $12,834,593
New 62,955,052 - 62,955,052 - 62,955,052
Redevelopment 6,695,196 - 6,695,196 - 6,695,196
Discontinued 2,248 2,248 (4,129,272) (4,127,024)
------------- ------------- ------------- ------------- -------------
Total Real Estate Revenues 90,141,564 (7,654,476) 82,487,088 (4,129,272) 78,357,816
------------- ------------- ------------- ------------- -------------
Operating Expenses:
Same Store 5,634,917 (2,610,367) 3,024,550 - 3,024,550
New 24,433,318 - 24,433,318 - 24,433,318
Redevelopment 2,320,331 - 2,320,331 - 2,320,331
Discontinued 14,504 14,504 (1,965,465) (1,950,961)
------------- ------------- ------------- ------------- -------------
Total Operating Expenses 32,403,070 (2,610,367) 29,792,703 (1,965,465) 27,827,238
------------- ------------- ------------- ------------- -------------
NOI:
Same Store 14,854,152 (5,044,109) 9,810,043 - 9,810,043
New 38,521,734 - 38,521,734 - 38,521,734
Redevelopment 4,374,865 - 4,374,865 - 4,374,865
Discontinued (12,256) - (12,256) (2,163,807) (2,176,063)
------------- ------------- ------------- ------------- -------------
NOI (2) 57,738,494 (5,044,109) 52,694,385 (2,163,807) 50,530,578
------------- ------------- ------------- ------------- -------------
OTHER INCOME (EXPENSES):
Management Company Revenue 4,048,766 - 4,048,766 - 4,048,766
Interest Income 335,524 - 335,524 - 335,524
General & Administrative: - - - -
Corporate Payroll (9,538,925) - (9,538,925) - (9,538,925)
Other G&A Expenses (8,461,798) - (8,461,798) - (8,461,798)
------------- ------------- ------------- ------------- -------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 44,122,061 (5,044,109) 39,077,952 (2,163,807) 36,914,145
------------- ------------- ------------- ------------- -------------
Interest Expense (16,332,086) 2,190,986 (14,141,100) $449,311 (13,691,789)
Depreciation and Amortization (19,160,727) 1,243,672 (17,917,055) - (17,917,055)
Equity in income of partnership and JVs - 1,609,451 1,609,451 - 1,609,451
Gain(loss) on Sale of Interests in RE 4,457,176 - 4,457,176 - 4,457,176
DISCONTINUED OPERATIONS: - - - - -
Income from Disposed Real Estate - - - 1,722,097 1,722,097
Equity in income of partnership and JVs - - - - -
Minority Interest in properties - - - (7,601) (7,601)
Minority Interest of O.P. Unitholders (580,392) - (580,392) - (580,392)
Gain (losses) on Disposition of
Discontinued Operations 194,441 - 194,441 - 194,441
------------- ------------- ------------- ------------- -------------
TOTAL DISCONTINUED OPERATIONS (385,951) - (385,951) 1,714,496 1,328,545
------------- ------------- ------------- ------------- -------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - -
Minority Interest of OP Unit Holders (1,198,594) - (1,198,594) - (1,198,594)
------------- ------------- ------------- ------------- -------------
NET INCOME 11,501,879 - 11,501,879 - 11,501,879
------------- ------------- ------------- ------------- -------------
Gain on Sale of Real Estate (4,651,617) - (4,651,617) - (4,651,617)
Depreciation and Amor. of Real Estate 19,095,727 - 19,095,727 - 19,095,727
Dividends on preferred shares (1,533,000) - (1,533,000) - (1,533,000)
FFO Adjustments 1,778,986 - 1,778,986 - 1,778,986
------------- ------------- ------------- ------------- -------------
FFO 26,191,975 - 26,191,975 - 26,191,975
------------- ------------- ------------- ------------- -------------
Adj. Straight Lining of Base Rents (1,055,305) - (1,055,305) - (1,055,305)
Recurring Capital Expenditures (442,327) - (442,327) - (442,327)
Amortization of Debt Premium (2,933,065) - (2,933,065) - (2,933,065)
------------- ------------- ------------- ------------- -------------
FAD $21,761,278 $- $21,761,278 - $21,761,278
------------- ------------- ------------- ------------- -------------
Dividends for Common Shares and O.P Units $15,534,398
Share Price (at close) $36.30
Weighted Average Number of Shares 28,786,801
WA number of Shares and OP Units 31,744,396
------------- ------------- ------------- ------------- -------------
Net Income/Share $0.35
FFO/Share and OP Units $0.83
FAD/Share and OP Units $0.69
Dividend/Share and OP Units $0.54
------------- ------------- ------------- ------------- -------------
Q4 02
(3 months ended 12/31/02)
-----------------------------------------------------------------------------------
Adjustments
Combined to Equity Assets Held
TOTAL Method Subtotal for Sale Total
------------- ------------- ------------- ------------- -------------
Real Estate Revenues:
Same Store $19,805,245 (10,026,636) $9,778,609 - $9,778,609
New 2,055,325 - 2,055,325 - 2,055,325
Redevelopment 6,493,056 - 6,493,056 - 6,493,056
Discontinued 14,928,033 (1,332,192) 13,595,841 (13,595,841) -
------------- ------------- ------------- ------------- -------------
Total Real Estate Revenues 43,281,659 (11,358,828) 31,922,831 (13,595,841) 18,326,990
------------- ------------- ------------- ------------- -------------
Operating Expenses:
Same Store 5,197,919 (3,527,814) 1,670,105 - 1,670,105
New 959,949 959,949 - 959,949
Redevelopment 2,157,149 - 2,157,149 - 2,157,149
Discontinued 6,372,745 (592,118) 5,780,627 (5,780,627) -
------------- ------------- ------------- ------------- -------------
Total Operating Expenses 14,687,762 (4,119,932) 10,567,830 (5,780,627) 4,787,203
------------- ------------- ------------- ------------- -------------
NOI:
Same Store 14,607,326 (6,498,822) 8,108,504 - 8,108,504
New 1,095,376 - 1,095,376 - 1,095,376
Redevelopment 4,335,907 - 4,335,907 - 4,335,907
Discontinued 8,555,288 (740,074) 7,815,214 (7,815,214) -
------------- ------------- ------------- ------------- -------------
NOI (2) 28,593,897 (7,238,896) 21,355,001 (7,815,214) 13,539,787
------------- ------------- ------------- ------------- -------------
OTHER INCOME (EXPENSES):
Management Company Revenue 4,233,533 - 4,233,533 - 4,233,533
Interest Income 191,895 - 191,895 - 191,895
General & Administrative: - - - - -
Corporate Payroll (3,395,954) - (3,395,954) - (3,395,954)
Other G&A Expenses (3,012,605) - (3,012,605) - (3,012,605)
------------- ------------- ------------- ------------- -------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 26,610,766 (7,238,896) 19,371,870 (7,815,214) 11,556,656
------------- ------------- ------------- ------------- -------------
Interest Expense (10,976,735) 3,337,204 (7,639,531) $3,326,139 (4,313,392)
Depreciation and Amortization (7,503,027) 1,630,536 (5,872,491) $2,244,076 (3,628,415)
Equity in income of partnership and JVs 2,271,156 2,271,156 - 2,271,156
Gain(loss) on Sale of Interests in RE - - - - -
DISCONTINUED OPERATIONS: - - - - -
Income from Disposed Real Estate (17,217) - (17,217) 2,244,999 2,227,782
Equity in income of partnership and JVs - - - - -
Minority Interest in properties
Minority Interest of O.P. Unitholders 6,605 - 6,605 - 6,605
Gain (losses) on Disposition of
Discontinued Operations - - - - -
------------- ------------- ------------- ------------- -------------
TOTAL DISCONTINUED OPERATIONS (10,612) - (10,612) 2,244,999 2,234,387
------------- ------------- ------------- ------------- -------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - -
Minority Interest of OP Unit Holders (789,137) - (789,137) - (789,137)
------------- ------------- ------------- ------------- -------------
NET INCOME 7,331,255 - 7,331,255 - 7,331,255
------------- ------------- ------------- ------------- -------------
Gain on Sale of Real Estate - - - - -
Depreciation and Amor. of Real Estate 7,438,027 - 7,438,027 - 7,438,027
Dividends on preferred shares
FFO Adjustments 782,532 - 782,532 - 782,532
------------- ------------- ------------- ------------- -------------
FFO 15,551,814 - 15,551,814 - 15,551,814
------------- ------------- ------------- ------------- -------------
Adj. Straight Lining of Base Rents (297,854) - (297,854) - (297,854)
Recurring Capital Expenditures (637,090) - (637,090) - (637,090)
Amortization of Debt Premium - - - - -
------------- ------------- ------------- ------------- -------------
FAD $14,616,870 $- $14,616,870 $- $14,616,870
------------- ------------- ------------- ------------- -------------
Dividends for Common Shares and O.P Units $9,343,863
Share Price (at close) $26.00
Weighted Average Number of Shares 16,450,912
WA number of Shares and OP Units 18,209,542
------------- ------------- ------------- ------------- -------------
Net Income/Share $0.45
FFO/Share and OP Units $0.85
FAD/Share and OP Units $0.80
Dividend/Share and OP Units $0.51
------------- ------------- ------------- ------------- -------------
Balance Sheet
Q4 03
(3 months ended 12/31/03)
--------------------------------------------------------------------------------------------
Adjustments to Assets Held for
Combined TOTAL Equity Method Subtotal Sale Total
--------------- --------------- --------------- --------------- ---------------
Investment in Real Estate, at
cost $2,540,102,220 $(134,613,285) $2,405,488,935 $(118,887,475) $2,286,601,460
Accumulated Depreciation (110,068,351) 31,652,085 (78,416,266) - (78,416,266)
Investment in and advances to
Partnership and JVs - 13,108,951 13,108,951 - 13,108,951
Other Assets 369,138,761 (23,839,906) $345,298,855 118,887,475 464,186,330
--------------- --------------- --------------- --------------- ---------------
Total Assets $2,799,172,630 $(113,692,155) $2,685,480,475 $- $2,685,480,475
--------------- --------------- --------------- --------------- ---------------
Mortgage Notes $1,396,262,538 $(109,581,659) $1,286,680,879 $(65,500,150) $1,221,180,729
Line of Credit 170,000,000 - 170,000,000 - 170,000,000
Acquisition Term Loan &
Unsecured Line of Credit - - - - -
Other Liabilities 96,624,952 (4,110,496) 92,514,456 65,500,150 158,014,606
--------------- --------------- --------------- --------------- ---------------
Total Liabilities $1,662,887,490 $(113,692,155) $1,549,195,335 $- $1,549,195,335
--------------- --------------- --------------- --------------- ---------------
Minority Interest $112,651,527 $- $112,651,527 $- $112,651,527
Total Shareholders Equity 1,023,633,613 - 1,023,633,613 - 1,023,633,613
--------------- --------------- --------------- --------------- ---------------
Total Liabilities and
Shareholder Equity $2,799,172,630 $(113,692,155) $2,685,480,475 $- $2,685,480,475
--------------- --------------- --------------- --------------- ---------------
Q4 02
(3 months ended 12/31/02)
--------------------------------------------------------------------------------------------
Adjustments to Assets Held for
Combined TOTAL Equity Method Subtotal Sale Total
--------------- --------------- --------------- --------------- ---------------
Investment in Real Estate, at
cost $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)
Investment in and advances to
Partnership and JVs 105,309 25,256,374 25,361,683 - 25,361,683
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
--------------- --------------- --------------- --------------- ---------------
Mortgage Notes $486,479,770 $(166,728,446) $319,751,324 $- $319,751,324
Line of Credit 130,800,000 - 130,800,000 - 130,800,000
Acquisition Term Loan &
Unsecured Line of Credit - - - - -
Other Liabilities 39,643,762 (7,016,897) 32,626,865 - 32,626,865
--------------- --------------- --------------- --------------- ---------------
Total Liabilities $656,923,532 $(173,745,343) $483,178,189 $- $483,178,189
--------------- --------------- --------------- --------------- ---------------
Minority Interest $32,472,437 $- $32,472,437 $- $32,472,437
Total Shareholders Equity 188,012,537 - 188,012,537 - 188,012,537
--------------- --------------- --------------- --------------- ---------------
Total Liabilities and
Shareholder Equity $877,408,506 $(173,745,343) $703,663,163 $- $703,663,163
--------------- --------------- --------------- --------------- ---------------
PAGE 41
Pennsylvania REIT
FLASH REPORT-RECONCILIATION TO GAAP (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Yearly Comparison
Financial Statement
12/31/03
(12 months ended 12/31/03)
---------------------------------------------------------------------------------------
Adjustments to Assets Held
Combined TOTAL Equity Method Subtotal for Sale Total
-------------- -------------- -------------- -------------- --------------
Real Estate Revenues:
Same Store $63,934,404 (30,459,521) 33,474,883 - 33,474,883
New 123,221,635 (4,737,566) 118,484,069 - 118,484,069
Redevelopment 22,684,353 - 22,684,353 - 22,684,353
Discontinued 26,897,382 (2,133,148) 24,764,234 (28,891,258) (4,127,024)
-------------- -------------- -------------- -------------- --------------
Total Real Estate Revenues 236,737,773 (37,330,235) 199,407,538 (28,891,258) 170,516,280
-------------- -------------- -------------- -------------- --------------
Operating Expenses:
Same Store 17,150,619 (9,735,897) 7,414,722 - 7,414,722
New 50,739,722 (2,878,733) 47,860,989 - 47,860,989
Redevelopment 7,908,329 - 7,908,329 - 7,908,329
Discontinued 12,430,545 (1,032,297) 11,398,248 (13,349,209) (1,950,961)
-------------- -------------- -------------- -------------- --------------
Total Operating Expenses 88,229,215 (13,646,927) 74,582,288 (13,349,209) 61,233,079
-------------- -------------- -------------- -------------- --------------
NOI:
Same Store 46,783,785 (20,723,624) 26,060,161 - 26,060,161
New 72,481,913 (1,858,833) 70,623,080 - 70,623,080
Redevelopment 14,776,024 - 14,776,024 - 14,776,024
Discontinued 14,466,837 (1,100,851) 13,365,986 (15,542,049) (2,176,063)
-------------- -------------- -------------- -------------- --------------
NOI (2) 148,508,558 (23,683,308) 124,825,250 (15,542,049) 109,283,201
-------------- -------------- -------------- -------------- --------------
OTHER INCOME (EXPENSES):
Management Company Revenue 11,994,203 - 11,994,203 - 11,994,203
Interest Income 887,180 - 887,180 - 887,180
General & Administrative: - - - -
Corporate Payroll (20,830,685) - (20,830,685) - (20,830,685)
Other G&A Expenses (19,336,946) - (19,336,946) - (19,336,946)
-------------- -------------- -------------- -------------- --------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 121,222,310 (23,683,308) 97,539,002 (15,542,049) 81,996,953
-------------- -------------- -------------- -------------- --------------
Interest Expense (52,359,677) 11,381,104 (40,978,573) 5,660,310 (35,318,263)
Depreciation and Amortization (44,996,057) 5,071,443 (39,924,614) 2,308,553 (37,616,061)
Equity in income of partnership and
JVs - 7,230,761 7,230,761 7,230,761
Gain(loss) on Sale of Interests in RE 16,199,310 - 16,199,310 - 16,199,310
DISCONTINUED OPERATIONS: - - - - -
Income from Disposed Real Estate - - - 7,580,787 7,580,787
Equity in income of partnership and
JVs - - - - -
Minority Interest in properties - (7,601) (7,601)
Minority Interest of O.P. Unitholders (18,848,730) - (18,848,730) - (18,848,730)
Gain (losses) on Disposition of
Discontinued Operations 178,121,005 - 178,121,005 178,121,005
-------------- -------------- -------------- -------------- --------------
TOTAL DISCONTINUED OPERATIONS 159,272,275 - 159,272,275 7,573,186 166,845,461
-------------- -------------- -------------- -------------- --------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - -
Minority Interest of OP Unit Holders (3,298,010) - (3,298,010) - (3,298,010)
-------------- -------------- -------------- -------------- --------------
NET INCOME 196,040,151 - 196,040,151 - 196,040,151
-------------- -------------- -------------- -------------- --------------
Gain on Sale of Real Estate (194,320,315) - (194,320,315) - (194,320,315)
Depreciation and Amor. of Real Estate 44,736,057 - 44,736,057 - 44,736,057
Dividends on preferred shares (1,533,000) - (1,533,000) (1,533,000)
FFO Adjustments 22,146,740 - 22,146,740 - 22,146,740
-------------- -------------- -------------- -------------- --------------
FFO 67,069,633 - 67,069,633 - 67,069,633
-------------- -------------- -------------- -------------- --------------
Adj. Straight Lining of Base Rents (2,805,547) - (2,805,547) - (2,805,547)
Recurring Capital Expenditures (1,931,941) - (1,931,941) - (1,931,941)
Amortization of Debt Premium (5,940,175) - (5,940,175) - (5,940,175)
-------------- -------------- -------------- -------------- --------------
FAD $56,391,970 $- $56,391,970 $- $56,391,970
-------------- -------------- -------------- -------------- --------------
Dividends for Common Shares and O.P
Units $46,892,620
Share Price (at close) $36.30
Weighted Average Number of Shares 20,389,577
WA number of Shares and OP Units 22,693,026
--------------
Net Income/Share $9.54
FFO/Share and OP Units $2.96
FAD/Share and OP Units $2.48
Dividend/Share and OP Units $2.07
12/31/02
(12 months ended 12/31/02)
---------------------------------------------------------------------------------------
Adjustments to Assets Held
Combined TOTAL Equity Method Subtotal for Sale Total
-------------- -------------- -------------- ------------- -------------
Real Estate Revenues:
Same Store $62,092,629 (30,063,249) $32,029,380 - $32,029,380
New 16,486,521 (7,318,227) 9,168,294 - 9,168,294
Redevelopment 22,143,145 - 22,143,145 - 22,143,145
Discontinued 57,582,151 (6,323,845) 51,258,306 (51,258,306) -
-------------- -------------- -------------- -------------- --------------
Total Real Estate Revenues 158,304,446 (43,705,321) 114,599,125 (51,258,306) 63,340,819
-------------- -------------- -------------- -------------- --------------
Operating Expenses:
Same Store 15,352,721 (9,243,504) 6,109,217 - 6,109,217
New 5,607,334 (3,048,561) 2,558,773 - 2,558,773
Redevelopment 7,597,365 - 7,597,365 - 7,597,365
Discontinued 24,103,080 (2,820,840) 21,282,240 (21,282,240) -
-------------- -------------- -------------- -------------- --------------
Total Operating Expenses 52,660,500 (15,112,905) 37,547,595 (21,282,240) 16,265,355
-------------- -------------- -------------- -------------- --------------
NOI:
Same Store 46,739,908 (20,819,745) 25,920,163 - 25,920,163
New 10,879,187 (4,269,666) 6,609,521 - 6,609,521
Redevelopment 14,545,780 - 14,545,780 - 14,545,780
Discontinued 33,479,071 (3,503,005) 29,976,066 (29,976,066) -
-------------- -------------- -------------- -------------- --------------
NOI (2) 105,643,946 (28,592,416) 77,051,530 (29,976,066) 47,075,464
-------------- -------------- -------------- -------------- --------------
OTHER INCOME (EXPENSES):
Management Company Revenue 11,002,570 - 11,002,570 - 11,002,570
Interest Income 710,687 - 710,687 - 710,687
General & Administrative: - - - -
Corporate Payroll (14,137,939) - (14,137,939) - (14,137,939)
Other G&A Expenses (10,608,902) - (10,608,902) - (10,608,902)
-------------- -------------- -------------- -------------- --------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 92,610,362 (28,592,416) 64,017,946 (29,976,066) 34,041,880
-------------- -------------- -------------- -------------- --------------
Interest Expense (41,696,929) 13,697,011 (27,999,918) $12,622,369 (15,377,549)
Depreciation and Amortization (28,857,528) 7,446,295 (21,411,233) $8,442,297 (12,968,936)
Equity in income of partnership and
JVs 7,449,110 7,449,110 - 7,449,110
Gain(loss) on Sale of Interests in RE 4,085,164 - 4,085,164 - 4,085,164
DISCONTINUED OPERATIONS: - - - -
Income from Disposed Real Estate 151,875 - 151,875 8,911,400 9,063,275
Equity in income of partnership and
JVs - - -
Minority Interest in properties
Minority Interest of O.P. Unitholders (1,352,412) - (1,352,412) - (1,352,412)
Gain (losses) on Disposition of
Discontinued Operations - - - -
-------------- -------------- -------------- -------------- --------------
TOTAL DISCONTINUED OPERATIONS (1,200,537) - (1,200,537) 8,911,400 11,796,027
-------------- -------------- -------------- -------------- --------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - -
Minority Interest of OP Unit Holders (1,262,556) - (1,262,556) - (1,262,556)
-------------- -------------- -------------- -------------- --------------
NET INCOME 23,677,976 - 23,677,976 - 23,677,976
-------------- -------------- -------------- -------------- --------------
Gain on Sale of Real Estate (4,085,164) - (4,085,164) - (4,085,164)
Depreciation and Amor. of Real Estate 28,597,528 - 28,597,528 - 28,597,528
Dividends on preferred shares
FFO Adjustments 2,976,919 - 2,976,919 - 2,976,919
-------------- -------------- -------------- -------------- --------------
FFO 51,167,259 - 51,167,259 - 51,167,259
-------------- -------------- -------------- -------------- --------------
Adj. Straight Lining of Base Rents (1,041,694) - (1,041,694) - (1,041,694)
Recurring Capital Expenditures (2,903,637) - (2,903,637) - (2,903,637)
Amortization of Debt Premium - - - - -
-------------- -------------- -------------- -------------- --------------
FAD $47,221,928 $- $47,221,928 $- $47,221,928
-------------- -------------- -------------- -------------- --------------
Dividends for Common Shares and O.P
Units $36,909,429
Share Price (at close) $26.00
Weighted Average Number of Shares 16,162,327
WA number of Shares and OP Units 17,967,106
--------------
Net Income/Share $1.47
FFO/Share and OP Units $2.85
FAD/Share and OP Units $2.63
Dividend/Share and OP Units $2.04
PAGE 42
Pennsylvania REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2003)
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
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.
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