Exhibit 99.1
[PREIT LOGO] PEI
LISTED
NYSE(R)
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
QUARTERLY SUPPLEMENTAL DISCLOSURE
(MARCH 31, 2004)
WWW.PREIT.COM
PENNSYLVANIA REIT [PREIT LOGO] PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) LISTED
NYSE(R)
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--Line of Business- Quarterly Comparison 8
Income Statement--Retail (Property Status) -Quarterly Comparison 9
Income Statement--Retail (Property Subtype) -Quarterly Comparison 10
FFO and FAD 11
Key Ratios 12
Property Debt Schedule--Wholly Owned 13
Property Debt Schedule--JV 14
Debt Analysis 15
Debt Ratios 16
Portfolio Summary--Retail 17A-C
Property Acquisitions/Dispositions- Quarterly Summary 18
Property Development/Redevelopment Summary 19
Top Twenty Tenants Schedule 20
Lease Expiration Schedule - Anchor Tenants 21
Lease Expiration Schedule - Non-Anchor Tenants 22
New Lease/Renewal Summary and Analysis 23
Capital Expenditures 24
Enclosed Mall-Summary and Occupancy 25
Enclosed Mall-Rent Summary 26
Power Center- Summary and Occupancy 27
Strip Center- Summary and Occupancy 28
Retail Overall- Summary and Occupancy 29
Summary of Portfolio Services 30
Flash Report 31
RECONCILIATION TO GAAP:
Balance Sheet-Reconciliation to GAAP 32
Income Statement-Reconciliation to GAAP -Quarterly 33
Flash Report-Reconciliation to GAAP- Quarterly 34
Definition page 35
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 [PREIT LOGO] PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) LISTED
NYSE(R)
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
- ------- ------- ------------
- --------------------------------------------------------------------------------
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
Nathan Isbee (410) 454-4143
- --------------------------------------------------------------------------------
Lehman Brothers David Shulman (212) 526-3413
Alexander D. Goldfarb (212) 526-5232
================================================================================
QUARTERLY EARNINGS SCHEDULE
PREIT's quarterly results will be announced in accordance with the following
schedule:
======================================================
QUARTER 2004 2003
- ------- ---- ----
- ------------------------------------------------------
First Quarter 5/5/2004 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 [PREIT LOGO] PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) LISTED
NYSE(R)
TIME LINE/RECENT DEVELOPMENTS
-----------------------------
APRIL 27, 2004 - Pennsylvania Real Estate Investment Trust announced that Robert
F. McCadden will join PREIT on May 17, 2004 as its Chief Financial Officer and
Executive Vice President.
APRIL 22, 2004 - Pennsylvania Real Estate Investment Trust announced that its
Board of Trustees declared a quarterly cash dividend of $0.54 per common share
and a regular quarterly dividend of $1.375 per 11.00% senior preferred share.
The Company announced that it intends to release its financial results for the
first quarter ended March 31, 2004, on Wednesday, May 5th, 2004. It also
announced that it will hold its Annual Meeting of Shareholders on Thursday,
June 3, 2004.
MARCH 16, 2004 - Pennsylvania Real Estate Investment Trust announced that it had
executed into an agreement to acquire The Gallery at Market East II,
Philadelphia, PA, from 5 North Fifth Street, L.P., an entity controlled by
Pennsylvania Public School Employees' Retirement System ("PSERS")
for $32 million.
MARCH 3, 2004 - Pennsylvania Real Estate Investment Trust announced that PREIT's
press release dated February 25, 2004 contained a miscalculation in the per
share amounts for PREIT's basic net income and its basic net income from
continuing operations for the calendar year and fourth quarter of 2003. PREIT's
February 25, 2004 press release also reported that the amount of intangible
assets acquired in connection with PREIT's merger with Crown American Realty
Trust incorrectly.
MARCH 2, 2004 - Pennsylvania Real Estate Investment Trust announced that it was
presenting at the Smith Barney 2004 REIT CEO Conference on March 3, 2004.
FEBRUARY 25, 2004 - Pennsylvania Real Estate Investment Trust announced the
results for the fourth quarter and twelve months ended December 31, 2004.
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.
NOTE: A COPY OF THE PRESS RELEASES ARE AVAILABLE ON THE COMPANY'S WEBSITE AT
WWW.PREIT.COM.
PAGE 2
PENNSYLVANIA REIT [PREIT LOGO] PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) NYSE(R)
STOCK INFORMATION
- -----------------
PREIT's common stock trades on the New York Stock Exchange (symbol: PEI).
PREIT's preferred stock trades on the New York Stock Exchange (symbol: PEIPRA).
Q1:3/31/04 CY:12/31/03 Q1:3/31/03 CY 12/31/02 CY 12/31/01
- ----------------------------------------------------------------------------------------------------------------------------------
High Price 37.75 36.30 28.80 27.20 25.05
Low Price 33.30 24.70 24.70 20.55 18.25
Close 37.66 36.30 28.65 26.00 23.20
Average Daily Trading Volume 220,144 109,892 37,385 41,495 39,463
Common Shares Outstanding at end of period 35,778,863 35,544,265 16,753,614 16,697,119 15,876,084
O.P. Units 3,834,714 3,691,516 1,763,320 1,763,318 1,753,580
-------------- -------------- ------------ ------------ ------------
Fully Diluted Shares Outstanding 39,613,577 39,235,781 18,516,934 18,460,437 17,629,664
Weighted Avg. number of common shares outstanding 35,403,257 20,389,577 16,544,737 16,162,327 14,656,711
Weighted Avg. effect of full conversion of O.P. units 3,836,144 2,303,449 1,763,320 1,804,779 1,869,383
-------------- -------------- ------------ ------------ ------------
Wtd Avg. Common Shares Outstanding and O.P. Units 39,239,401 22,693,026 18,308,057 17,967,106 16,526,094
Preferred Shares, Nominal Value $ 123,750,000 $ 123,750,000
Market Value of Shares (based on closing price) $1,615,597,310 $1,548,008,850 $530,510,159 $479,971,362 $409,008,205
- ----------------------------------------------------------------------------------------------------------------------------------
SHAREHOLDER INFORMATION
- -----------------------
- --------------------------------------------------------------------------------
TEN LARGEST INSTITUTIONAL SHAREHOLDERS:
COMMON SHARES HELD (1) 3/31/2004
---------
RREEF Real Estate Securities Advisers, L.P. 3,764,082
ING Clarion Real Estate Securities 1,663,258
Vanguard Group, Inc. 1,348,998
Barclays Global Investors 1,115,380
K.G. Redding & Associates 952,600
Urdang Investment Management, Inc. 841,800
State Street Global Advisors 722,180
Manufacturers Advisers Corporation 699,742
Neuberger Berman, LLC 620,600
J.P. Morgan Investment Management Inc. 401,771
TOTAL OF TEN LARGEST INSTITUTIONAL: 12,130,411
TOTAL OF ALL INSTITUTIONAL HOLDERS: 19,339,846
TEN LARGEST AS % OF TOTAL INSTITUTIONAL: 62.7%
(1) Based on 13F filings as of 12/31/03 or most recent filings.
Urdang State Street Manufacturers
RREEF Real ING Clarion Real Vanguard Barclays Global K.G. Redding Investment Global Advisers
Estate Securiti.. Estate Secu... Group, Inc. Investors & Associates Manage... Advisors Cor...
4,000,000-------------------------------------------------------------------------------------------------------------------------
|
3,500,000-------|-----------------------------------------------------------------------------------------------------------------
|
3,000,000-------|-----------------------------------------------------------------------------------------------------------------
|
2,500,000-------|-----------------------------------------------------------------------------------------------------------------
|
2,000,000-------|-----------------------------------------------------------------------------------------------------------------
| |
1,500,000-------|------------------|---------------|------------------------------------------------------------------------------
| | | |
1,000,000-------|------------------|---------------|-------------|---------------|-------------|----------------------------------
| | | | | | | |
500,000-------|------------------|---------------|-------------|---------------|-------------|------------|--------------|------
| | | | | | | |
-- -------|------------------|---------------|-------------|---------------|-------------|------------|--------------|------
- --------------------------------------------------------------------------------
SHARE OWNERSHIP BY INSIDERS: SHARES HELD (INCLUDING INTERIM NET
O.P. UNITS, BENEFICIAL OWNERSHIP AND EXERCISABLE PURCHASES OF
OPTIONS) AS OF 4/1/04(1) % OF TOTAL (2) SHARES (3) (AS OF 12/31/03(4) % OF TOTAL (5)
--------------- -------------- ------------ ------------------ --------------
Mark Pasquerilla 2,398,073 6.1% 1,000 2,397,073 6.1%
Ronald Rubin 859,469 2.2% 20,621 838,848 2.1%
George F. Rubin 434,925 1.1% 14,390 420,535 1.1%
Leonard I. Korman 363,475 0.9% 50,690 312,785 0.8%
Edward A. Glickman 225,856 0.6% 12,626 213,230 0.5%
Jonathan B. Weller 165,736 0.4% 13,206 152,530 0.4%
Joseph F. Coradino 125,043 0.3% 13,386 111,657 0.3%
Jeffrey P. Orleans 84,958 0.2% 2,210 82,748 0.2%
Jeffrey A. Linn 72,450 0.2% 3,094 69,356 0.2%
Douglas S. Grayson 45,306 0.1% 3,154 42,152 0.1%
David J. Bryant 24,894 0.1% 3,642 21,252 0.1%
Bruce Goldman 16,499 0.0% 5,746 10,753 0.0%
Lee H. Javitch 15,375 0.0% 3,250 12,125 0.0%
Rosemarie B. Greco 9,375 0.0% 2,250 7,125 0.0%
Ira Lubert 5,500 0.0% 2,250 3,250 0.0%
Donald Mazziotti 1,985 0.0% N/A N/A N/A
John J. Roberts 1,000 0.0% N/A N/A N/A
-------------------------------------------------------------------------------
TOTAL (6) 4,793,078 12.2% 151,515 4,643,637 12.0%
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION INFORMATION
- ------------------------
Q1:3/31/04 CY:12/31/03 Q1:3/31/03 CY 12/03/02 CY 12/31/01
- -----------------------------------------------------------------------------------------------------------------
Dividend per share $ 0.540 $ 2.070 $ 0.510 $ 2.040 $ 2.040
Annualized Dividend Yield (1) 5.7% 5.7% 7.1% 7.8% 8.8%
Capital Gain Pre-May 6 N/A 0.096 $ 0.082 $ 0.110
Capital Gain Post-May 5 N/A 0.213 0
Section 1250 Gain N/A 0.480 0.064 $ - $ 0.129
Return of Capital/Non-Taxable N/A 0.085 0.021 $ 0.134 $ -
Qualified 5 Year Gain (incl. in cap. Gain) N/A N/A N/A $ - $ -
Ordinary Income N/A $ 1.196 $ 0.425 $ 1.824 $ 1.801
- -----------------------------------------------------------------------------------------------------------------
(1) Based on closing stock price for the period.
- --------------------------------------------------------------------------------
BREAKDOWN OF SHARE & UNIT % OF 3/31/04
OWNERSHIP: SHARES HELD 3/31/2004 3/31/2003 TOTAL
--------- --------- ------------
Institutional (1) 19,339,846 4,549,573 48.8%
Retail (2) 15,954,988 12,164,813 40.3%
Insiders (3) 4,318,743 1,746,051 10.9%
---------- ---------- -----
TOTAL 39,613,577 18,460,437 100.0%
3/31/04
48.8% 40.3% 10.9%
- ---------------------------------------------------------
Institutional (1) Retail (2) Insiders (3)
(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 1/4/04. (Shares and O.P. Units only. Excludes 474,335
exercisable options).
- --------------------------------------------------------------------------------
(1) Source of Insider Ownership: Proxy dated April 29, 2004. Refer to footnotes
in proxy for details on beneficial ownership.
(2) Based on fully diluted shares outstanding as of March 31, 2004.
(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 December 31, 2003.
(6) In certain instances, two trustees beneficially own the same shares because
they share voting or investment power over the shares. These shares have
been counted only once in the total.
PAGE 3
PENNSYLVANIA REIT [PREIT LOGO] PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) LISTED
NYSE(R)
MARKET CAPITALIZATION
MARCH 31, DECEMBER 31, MARCH 31, DECEMBER 31, DECEMBER 31,
2004 2003 2003 2002 2001
--------------- --------------- --------------- --------------- -------------
EQUITY CAPITALIZATION
Shares Outstanding 35,778,863 35,544,265 16,753,614 16,697,119 15,876,084
O.P. Units Outstanding 3,834,714 3,691,516 1,763,320 1,763,318 1,753,580
--------------- --------------- --------------- --------------- -------------
TOTAL Shares and O.P. Units 39,613,577 39,235,781 18,516,934 18,460,437 17,629,664
Market Price (at end of period) $37.66 $36.30 $28.65 $26.00 $23.20
Preferred Shares, Nominal Value $123,750,000 $123,750,000
EQUITY MARKET CAPITALIZATION $ 1,615,597,310 $ 1,548,008,850 $ 530,510,159 $ 479,971,362 $ 409,008,205
DEBT CAPITALIZATION
Unsecured Debt Balance $ 182,000,000 $ 170,000,000 $ - $ - $ -
Secured Debt Balance 1,386,313,775 1,396,262,538 625,117,601 617,279,770 506,175,818
--------------- --------------- --------------- --------------- -------------
DEBT CAPITALIZATION $1,568,313,775 $ 1,566,262,538 $ 625,117,601 $ 617,279,770 $ 506,175,818
--------------- --------------- --------------- --------------- -------------
TOTAL MARKET CAPITALIZATION $ 3,183,911,085 $ 3,114,271,388 $ 1,155,627,760 $ 1,097,251,132 $ 915,184,023
=============== =============== =============== =============== =============
PREFERRED SHARES/TOTAL MARKET CAPITALIZATION 3.9% 4.0%
SHARES AND O.P. UNITS/TOTAL MARKET CAPITALIZATION 46.9% 45.7% 45.9% 43.7% 44.7%
DEBT CAPITALIZATION/TOTAL MARKET CAPITALIZATION 49.3% 50.3% 54.1% 56.3% 55.3%
EQUITY CAPITALIZATION/TOTAL MARKET CAPITALIZATION 50.7% 53.6% 45.9% 43.7% 44.7%
UNSECURED DEBT BALANCE/TOTAL DEBT 11.6% 0.0% 0.0% 0.0% 0.0%
PREFERRED SHARES/TOTAL SHARES AND O.P. UNITS/TOTAL DEBT CAPITALIZATION/TOTAL
MARKET CAPITALIZATION MARKET CAPITALIZATION MARKET CAPITALIZATION
3.9% 46.9% 49.3%
4.0% 45.7% 50.3%
45.9% 54.1%
43.7% 56.3%
44.7% 55.3%
CAPITAL RESOURCES
MARCH 31, DECEMBER 31, MARCH 31, DECEMBER 31, DECEMBER 31,
2004 2003 2003 2002 2001
--------------- --------------- --------------- --------------- -------------
CASH ON HAND $ 37,024,603 $ 52,534,598 $ 14,015,658 $ 18,628,137 $ 16,242,450
LINE OF CREDIT CAPACITY (1) $ 500,000,000 $ 500,000,000 $ 200,000,000 $ 200,000,000 $ 175,000,000
Amount Used (includes letters of credit) (183,195,000) (170,500,000) (147,573,671) (131,473,671) (100,168,659)
--------------- --------------- --------------- --------------- -------------
Available LOC (2) $ 316,805,000 $ 329,500,000 $ 52,426,329 $ 68,526,329 $ 74,831,341
SHELF REGISTRATION $ 1,000,000,000 $ 1,000,000,000 $ 500,000,000 $ 500,000,000 $ 200,000,000
Amount Used (344,146,042) (344,146,042) (155,977,292) (155,977,292) (148,925,000)
--------------- --------------- --------------- --------------- -------------
Available Shelf $ 655,853,958 $ 655,853,958 $ 344,022,708 $ 344,022,708 $ 51,075,000
--------------- --------------- --------------- --------------- -------------
TOTAL CAPITAL RESOURCES $ 1,009,683,561 $ 1,037,888,556 $ 410,464,695 $ 431,177,174 $ 142,148,791
=============== =============== =============== =============== =============
(1) The unsecured revolving line of credit from November of 2003 gives PREIT the
ability to increase the facility to $650 million under prescribed
conditions.
(1) The available line of credit is subject to covenants that may restrict
amounts that can be borrowed.
PAGE 4
PENNSYLVANIA REIT [PREIT LOGO] PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) LISTED
NYSE(R)
BALANCE SHEET -------------------------------------------------------------------
(Wholly Owned vs. JVs) MARCH 31, 2004
-------------------------------------------------------------------
PREIT PREIT'S % COMBINED
WHOLLY OWNED OF JVS (5) CORPORATE TOTAL
-------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties (1) $ 2,399,418,328 $ 135,981,353 - $ 2,535,399,681
Multifamily Properties - - - -
Industrial Properties 2,504,211 - - 2,504,211
Land Held for Development 9,397,945 - - 9,397,945
Construction In Progress 21,849,530 1,506,178 - 23,355,708
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TOTAL INVESTMENTS IN REAL ESTATE 2,433,170,014 137,487,531 - 2,570,657,545
Accumulated Depreciation (98,533,506) (32,248,911) - (130,782,417)
-------------------------------------------------------------------
Net Real Estate 2,334,636,508 105,238,620 - 2,439,875,128
-------------------------------------------------------------------
Advances to Partnerships and Joint Ventures - - -
-------------------------------------------------------------------
2,334,636,508 105,238,620 - 2,439,875,128
-------------------------------------------------------------------
Allowance for Possible Losses -
-------------------------------------------------------------------
2,334,636,508 105,238,620 - 2,439,875,128
-------------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 12,591,337 4,459,678 19,973,588 37,024,603
Rents and Other Receivables 24,415,060 7,921,525 1,714,874 34,051,459
Other assets held for sale (1) 37,383,935 - 37,383,935
Intangible Assets (2) 159,907,867 12,085,313 171,993,180
Deferred Costs, Prepaid Taxes & Exp. & Other Assets 36,800,984 11,737,284 16,441,187 64,979,455
-------------------------------------------------------------------
TOTAL OTHER ASSETS 271,099,183 24,118,487 50,214,962 345,432,632
-------------------------------------------------------------------
TOTAL ASSETS 2,605,735,691 129,357,107 50,214,962 2,785,307,760
===================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 1,206,593,974 109,096,195 - 1,315,690,169
Mortgage Debt Premium (3) 70,623,606 - 70,623,606
Bank Loans Payable - - 182,000,000 182,000,000
Acquisition Term Loan &Unsecured Line of Credit - - - -
Construction Loans
Liabilities Related to Assets held for sale 4,365,915 - 4,365,915
Other Liabilities (4) 49,479,921 3,839,170 30,413,314 83,732,405
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TOTAL LIABILITIES 1,331,063,416 112,935,365 212,413,314 1,656,412,095
-------------------------------------------------------------------
-------------------------------------------------------------------
Minority Interest 4,546,973 - 112,836,314 117,383,287
-------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - 35,781,922 35,781,922
Preferred Shares $0.01 Par 24,750 24,750
Capital Contributed in Excess of Par - - 884,677,043 884,677,043
Restricted Stock - - (9,311,239) (9,311,239)
Other Comprehensive Income - - (1,927,948) (1,927,948)
Retained Earnings (Distributions in Excess of Net Income) - - 102,267,850 102,267,850
-------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - 1,011,512,378 1,011,512,378
-------------------------------------------------------------------
-------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,335,610,389 $ 112,935,365 $ 1,336,762,006 $ 2,785,307,760
===================================================================
-------------------------------------------------------------------
DECEMBER 31, 2003
-------------------------------------------------------------------
PREIT PREIT'S % COMBINED
WHOLLY OWNED OF JVS (5) CORPORATE TOTAL
-------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties (1) $ 2,382,753,911 $ 133,107,107 - $ 2,515,861,018
Multifamily Properties - - - -
Industrial Properties 2,504,211 - - 2,504,211
Land Held for Development
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
Other assets held for sale (1) 37,686,662 - 37,686,662
Intangible Assets (2) 172,502,487 9,041,888 181,544,375
Deferred Costs, Prepaid Taxes & Exp. & Other Assets 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
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TOTAL LIABILITIES 1,338,628,702 113,692,155 210,566,634 1,662,887,491
-------------------------------------------------------------------
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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
===================================================================
-----------------------------------------------------------------
MARCH 31, 2003
-----------------------------------------------------------------
PREIT PREIT'S % COMBINED
WHOLLY OWNED OF JVS (5) CORPORATE TOTAL
-----------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties (1) $ 426,428,092 $ 197,460,988 - $ 623,889,080
Multifamily Properties 291,710,346 14,745,274 - 306,455,620
Industrial Properties 2,504,211 - - 2,504,211
Land Held for Development
Construction In Progress 19,232,112 1,558,769 - 20,790,881
-----------------------------------------------------------------
TOTAL INVESTMENTS IN REAL ESTATE 739,874,761 213,765,031 - 953,639,792
Accumulated Depreciation (138,609,007) (45,408,385) - (184,017,392)
-----------------------------------------------------------------
Net Real Estate 601,265,754 168,356,646 - 769,622,400
-----------------------------------------------------------------
Advances to Partnerships and Joint Ventures - - 51,966 51,966
-----------------------------------------------------------------
601,265,754 168,356,646 51,966 769,674,366
-----------------------------------------------------------------
Allowance for Possible Losses - - -
-----------------------------------------------------------------
601,265,754 168,356,646 51,966 769,674,366
-----------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 5,844,706 5,901,127 2,269,825 14,015,658
Rents and Other Receivables 7,557,600 8,928,874 2,271,864 18,758,338
Other assets held for sale (1) 7,884,918 1,474,569 - 9,359,487
Intangible Assets (2) 2,293,349 16,679,886 18,973,235
Deferred Costs, Prepaid Taxes & Exp. & Other Assets 9,464,051 13,192,467 18,159,185 40,815,703
-----------------------------------------------------------------
TOTAL OTHER ASSETS 33,044,624 29,497,037 39,380,760 101,922,421
-----------------------------------------------------------------
TOTAL ASSETS 634,310,378 197,853,683 39,432,726 871,596,787
=================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 312,175,566 166,042,035 - 478,217,601
Mortgage Debt Premium (3) -
Bank Loans Payable 116,339,875 25,393,234 5,166,891 146,900,000
Acquisition Term Loan &Unsecured Line of Credit - - - -
Construction Loans -
Liabilities Related to Assets held for sale 4,695,764 459,249 - 5,155,013
Other Liabilities (4) 8,909,387 5,848,554 8,896,371 23,654,312
-----------------------------------------------------------------
TOTAL LIABILITIES 442,120,592 197,743,072 14,063,262 653,926,926
-----------------------------------------------------------------
-----------------------------------------------------------------
Minority Interest 126,715 - 32,109,606 32,236,321
-----------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - 16,753,814 16,753,814
Preferred Shares $0.01 Par - -
Capital Contributed in Excess of Par - - 218,157,987 218,157,987
Restricted Stock - - (3,578,645) (3,578,645)
Other Comprehensive Income - - (3,845,468) (3,845,468)
Retained Earnings (Distributions in Excess of Net Income) - - (42,054,148) (42,054,148)
-----------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - 185,433,540 185,433,540
-----------------------------------------------------------------
-----------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 442,247,307 $ 197,743,072 $ 231,606,408 $ 871,596,787
=================================================================
(1) Investment in real estate as of March 31, 2004 and December 31, 2003
includes $96,448,111 and $118,887,475, respectively relating to the non-core
properties. The non-core properties are classified as held-for-sale for GAAP
purposes. Other assets held for sale represents intangible assets and current
assets of the non-core properties. Assets held for sale for GAAP purposes were
$133,832,046 and $156,574,137 as of March 31, 2004 and December 31, 2003,
respectively. During the first quarter of 2004, PREIT reallocated approximately
$20 million of the amount originally allocated to the non-core properties to the
other properties acquired in the Crown merger.
(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 when a
property is purchased. The debt is marked 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
Company'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 Company's Equity in these properties.
NOTE: RECONCILIATION TO GAAP IS ON PAGES 32 TO 35.
PAGE 5
PENNSYLVANIA REIT [PREIT LOGO] PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) NYSE(R)
BALANCE SHEET (1) -----------------------------------------------------------------------------------------------------
(Line of Business) MARCH 31, 2004
-----------------------------------------------------------------------------------------------------
POWER AND STRIP OTHER
MALLS CENTERS TOTAL RETAIL PROPERTIES CORPORATE COMBINED TOTAL
ASSETS
-----------------------------------------------------------------------------------------------------
Investments in Real Estate, at
cost (2) $ 2,225,064,658 $ 310,335,023 $ 2,535,399,681 $ 35,257,864 $ - $ 2,570,657,545
====================================================================================================
Accumulated Depreciation (87,461,869) (41,231,237) (128,693,106) (2,089,311) - (130,782,417)
====================================================================================================
NET REAL ESTATE 2,137,602,789 269,103,786 2,406,706,575 33,168,553 - 2,439,875,128
====================================================================================================
Investments in PREIT-RUBIN
Advances to Partnerships and
Joint Ventures - - - - -
Advances to PREIT-RUBIN -
----------------------------------------------------------------------------------------------------
2,137,602,789 269,103,786 2,406,706,575 33,168,553 - 2,439,875,128
----------------------------------------------------------------------------------------------------
Allowance for Possible
Losses - - - -
----------------------------------------------------------------------------------------------------
2,137,602,789 269,103,786 2,406,706,575 33,168,553 - 2,439,875,128
----------------------------------------------------------------------------------------------------
Other Assets:
Cash 13,487,669 3,563,345 17,051,014 19,973,588 37,024,602
Other assets held for sale 37,383,935 37,383,935 - 37,383,935
Intangible Assets (3) 159,907,867 159,907,867 12,085,313 171,993,180
Other Assets, Net (4) 44,085,265 25,771,864 69,857,129 11,017,725 18,156,061 99,030,915
----------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 254,864,736 29,335,209 284,199,945 11,017,725 50,214,962 345,432,632
----------------------------------------------------------------------------------------------------
TOTAL ASSETS 2,392,467,525 298,438,995 2,690,906,520 44,186,278 50,214,962 2,785,307,760
====================================================================================================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Mortgage Notes Payable 1,226,803,245 88,886,924 1,315,690,169 - - 1,315,690,169
Mortgage Debt Premium (5) 70,623,606 - 70,623,606 - 70,623,606
Bank Loans Payable - - 182,000,000 182,000,000
Acquisition Term Loan &
Unsecured Line of
Credit - - - - -
Construction Loans - - - - - -
Liabilities Related to Assets
held for sale 4,365,915 4,365,915 - - 4,365,915
Other Liabilities (6) 42,981,162 5,330,612 48,311,774 5,007,317 30,413,314 83,732,405
----------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,344,773,928 94,217,536 1,438,991,464 5,007,317 212,413,314 1,656,412,095
----------------------------------------------------------------------------------------------------
Minority Interest 4,420,258 126,715 4,546,973 - 112,836,314 117,383,287
----------------------------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial
Interest at $1 Par - - - 35,781,922 35,781,922
Preferred Shares $0.01 Par 24,750 24,750
Capital Contributed in
Excess of Par - - - 884,677,043 884,677,043
Restricted Stock - - - (9,311,239) (9,311,239)
Other Comprehensive Income - - - (1,927,948) (1,927,948)
Retained Earnings
(Distributions in Excess
of Net Income) - - - 102,267,850 102,267,850
----------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - - - 1,011,512,378 1,011,512,378
----------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 1,349,194,186 $ 94,344,251 $ 1,443,538,437 $ 5,007,317 $ 1,336,762,006 $ 2,785,307,760
====================================================================================================
-----------------------------------------------------------------------------------------------------
DECEMBER 31, 2003
-----------------------------------------------------------------------------------------------------
POWER AND STRIP OTHER
MALLS CENTERS TOTAL RETAIL PROPERTIES CORPORATE COMBINED TOTAL
ASSETS
----------------------------------------------------------------------------------------------------
Investments in Real Estate, at
cost (2) $ 2,217,101,551 $ 298,759,467 $ 2,515,861,018 $ 24,241,202 $ - $ 2,540,102,220
====================================================================================================
Accumulated Depreciation (68,469,015) (39,522,565) (107,991,580) (2,076,771) - (110,068,351)
====================================================================================================
NET REAL ESTATE 2,148,632,536 259,236,902 2,407,869,438 22,164,431 - 2,430,033,869
====================================================================================================
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 - 2,430,033,869
----------------------------------------------------------------------------------------------------
Allowance for Possible
Losses - - - -
----------------------------------------------------------------------------------------------------
2,148,632,536 259,236,902 2,407,869,438 22,164,431 - 2,430,033,869
----------------------------------------------------------------------------------------------------
Other Assets:
Cash 13,158,371 4,327,918 17,486,289 35,048,308 52,534,597
Other assets held for sale 37,686,662 - 37,686,662 37,686,662
Intangible Assets (3) 172,502,487 - 172,502,487 9,041,888 181,544,375
Other Assets, Net (4) 42,915,526 24,994,311 67,909,837 15,980,505 13,482,785 97,373,127
----------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 266,263,046 29,322,229 295,585,275 15,980,505 57,572,981 369,138,761
----------------------------------------------------------------------------------------------------
TOTAL ASSETS 2,414,895,582 288,559,131 2,703,454,713 38,144,936 57,572,981 2,799,172,630
====================================================================================================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Mortgage Notes Payable 1,307,057,501 89,205,037 1,396,262,538 - - 1,396,262,538
Mortgage Debt Premium (5) - -
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 - - 5,840,385
Other Liabilities (6) 40,094,056 6,010,869 46,104,925 4,113,008 40,566,634 90,784,567
----------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,352,991,942 95,215,906 1,448,207,848 4,113,008 210,566,634 1,662,887,490
----------------------------------------------------------------------------------------------------
Minority Interest 8,464,264 126,715 8,590,979 - 104,060,548 112,651,527
----------------------------------------------------------------------------------------------------
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 $ 1,361,456,206 $ 95,342,621 $ 1,456,798,827 $ 4,113,008 $ 1,338,260,795 $ 2,799,172,630
====================================================================================================
------------------------------------------------------------------------------
MARCH 31, 2003
------------------------------------------------------------------------------
OTHER
RETAIL MULTIFAMILY PROPERTIES CORPORATE COMBINED TOTAL
ASSETS
------------------------------------------------------------------------------
Investments in Real Estate, at
cost (2) $ 623,889,080 $ 306,455,620 $ 23,295,092 $ - $ 953,639,792
==============================================================================
Accumulated Depreciation (80,177,754) (101,801,110) (2,038,528) - (184,017,392)
==============================================================================
NET REAL ESTATE 543,711,326 204,654,510 21,256,564 - 769,622,400
==============================================================================
Investments in PREIT-RUBIN
Advances to Partnerships and
Joint Ventures - - - 51,966 51,966
Advances to PREIT-RUBIN
------------------------------------------------------------------------------
543,711,326 204,654,510 21,256,564 51,966 769,674,366
------------------------------------------------------------------------------
Allowance for Possible
Losses - - - - -
------------------------------------------------------------------------------
543,711,326 204,654,510 21,256,564 51,966 769,674,366
------------------------------------------------------------------------------
Other Assets:
Cash 8,600,785 3,145,048 - 2,269,825 14,015,658
Other assets held for sale -
Intangible Assets (3) 2,293,349 16,679,886 18,973,235
Other Assets, Net (4) 39,130,436 9,359,487 12,556 20,431,049 68,933,528
------------------------------------------------------------------------------
TOTAL OTHER ASSETS 50,024,570 12,504,535 12,556 39,380,760 101,922,421
------------------------------------------------------------------------------
TOTAL ASSETS 593,735,896 217,159,045 21,269,120 39,432,726 871,596,787
==============================================================================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Mortgage Notes Payable 278,887,114 199,330,487 - - 478,217,601
Mortgage Debt Premium (5)
Bank Loans Payable 96,533,360 9,839,946 35,359,803 5,166,891 146,900,000
Acquisition Term Loan &
Unsecured Line of
Credit - - - - -
Construction Loans - - - - -
Liabilities Related to Assets
held for sale - - - - -
Other Liabilities (6) 11,640,685 5,155,013 3,117,256 8,896,371 28,809,325
------------------------------------------------------------------------------
TOTAL LIABILITIES 387,061,159 214,325,446 38,477,059 14,063,262 653,926,926
------------------------------------------------------------------------------
Minority Interest 126,715 - 32,109,606 32,236,321
------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial
Interest at $1 Par - - - 16,753,814 16,753,814
Preferred Shares $0.01 Par
Capital Contributed in
Excess of Par - - - 218,157,987 218,157,987
Restricted Stock - - - (3,578,645) (3,578,645)
Other Comprehensive Income - - - (3,845,468) (3,845,468)
Retained Earnings
(Distributions in Excess
of Net Income) - - - (42,054,148) (42,054,148)
------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - - 185,433,540 185,433,540
------------------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 387,187,874 $ 214,325,446 $ 38,477,059 $ 231,606,408 $ 871,596,787
==============================================================================
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the
Company'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) Investment in real estate as of March 31, 2004 and December 31, 2003
includes $96,448,111 and $118,887,475, respectively relating to the non-core
properties. The non-core properties are classified as held-for-sale for GAAP
purposes. Other assets held for sale represents intangible assets and current
assets of the non-core properties. Assets held for sale for GAAP purposes were
$133,832,046 and $156,574,137 as of March 31, 2004 and December 31, 2003,
respectively. During the first quarter of 2004, PREIT reallocated approximately
$20 million of the amount originally allocated to the non-core properties to the
other properties acquired in the Crown merger.
(3) 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.
(4) Deferred Costs, Prepaid Taxes and Expenses and Other Assets include Rents
and Other Receivables for Partnerships and Joint Ventures.
(5) Represents premium that is recorded in connection with debt assumed in
connection with property purchases. The debt is marked to market at the
acquisition date and the premium is amortized through interest expense over the
remaining term of the debt.
(6) 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 32 TO 35.
PAGE 6
PENNSYLVANIA REIT [PREIT LOGO] PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) NYSE(R)
INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Wholly Owned vs. JV) Q1 04
(3 MONTHS ENDED 3/31/04)
--------------------------------------------------------------------------- -------
COMBINED TOTAL %
WHOLLY OWNED JVS CORPORATE TOTAL CHANGE
--------------------------------------------------------------------------- -------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 64,202,897 $ 5,155,520 $ - 69,358,417 114.3%
Straight-Lining of Base Rents 1,309,785 39,437 - 1,349,222 261.8%
Percentage Rents 2,315,761 237,047 - 2,552,808 478.2%
Expense Reimbursables 30,785,238 1,590,403 32,375,641 406.2%
Lease Termination 26,689 - - 26,689 N/A
Other Real Estate Revenues 2,900,734 165,436 - 3,066,170 153.3%
--------------------------------------------------------------------------- -------
TOTAL REVENUES 101,541,104 93% 7,187,843 7% $ - 0% 108,728,947 164.5%
--------------------------------------------------------------------------- -------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 31,084,264 1,717,568 - 32,801,832 186.1%
Real Estate Taxes 9,174,902 577,269 - 9,752,171 181.7%
Minority Interest in Properties 427,404 - 427,404 N/A
--------------------------------------------------------------------------- -------
TOTAL EXPENSES 40,686,570 95% 2,294,837 5% - 0% 42,981,407 188.0%
--------------------------------------------------------------------------- -------
--------------------------------------------------------------------------- -------
NET OPERATING INCOME 60,854,534 93% 4,893,006 7% - 0% 65,747,540 151.1%
=========================================================================== =======
OTHER INCOME (EXPENSES)
Management Company Revenue - - 2,458,343 2,458,343 12.7%
Interest Income - - 253,728 253,728 79.3%
GENERAL & ADMINISTRATIVE:
Corporate Payroll - - (6,692,085) (6,692,085) 84.0%
Other G&A Expenses - - (4,118,759) (4,118,759) 53.1%
--------------------------------------------------------------------------- -------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 60,854,534 106% 4,893,006 8% (8,098,773) -14% 57,648,767 159.9%
--------------------------------------------------------------------------- -------
Interest Expense (2)(3) (17,041,328) (2,050,359) (1,657,535) (20,749,222) 96.0%
Depreciation & Amortization (25,343,875) (1,077,961) - (26,421,836) 262.5%
--------------------------------------------------------------------------- -------
TOTAL OTHER INCOME (EXPENSES) (42,385,203) (3,128,320) (1,657,535) (47,171,058) 163.9%
--------------------------------------------------------------------------- -------
Gains (losses) on sales of interests in
Real Estate - - - N/A
--------------------------------------------------------------------------- -------
Income before Minority Interest 18,469,331 1,764,686 (9,756,308) 10,477,709 90.5%
--------------------------------------------------------------------------- -------
Minority Interest of O.P. Unitholders - - (783,938) (783,938) 173.7%
--------------------------------------------------------------------------- -------
Income from Operations 18,469,331 1,764,686 (10,540,246) 9,693,771 86.0%
--------------------------------------------------------------------------- -------
DISCONTINUED OPERATIONS:
Income from Disposed Real Estate - - N/A
Minority Interest of O.P. Unitholders (180,440) (180,440) N/A
Gain (losses) on Disposition of Discontinued
Operations - (550,000) (550,000) N/A
--------------------------------------------------------------------------- -------
TOTAL DISCONTINUED OPERATIONS - - (730,440) (730,440) N/A
--------------------------------------------------------------------------- -------
Extraordinary item (Loss on early
extinguishment of debt) - - N/A
--------------------------------------------------------------------------- -------
NET INCOME $ 18,469,331 206% $ 1,764,686 20% $ (11,270,686) -126% $ 8,963,331 80.1%
=========================================================================== =======
Q1 03
(3 MONTHS ENDED 3/31/03)
---------------------------------------------------------------------------
COMBINED
WHOLLY OWNED JVS CORPORATE TOTAL
---------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $24,826,595 $ 7,541,729 $ - $ 32,368,324
Straight-Lining of Base Rents 331,733 41,135 - 372,868
Percentage Rents 272,895 168,602 - 441,497
Expense Reimbursables 3,901,177 2,494,909 6,396,086
Lease Termination 320,041 4,756 - 324,797
Other Real Estate Revenues 912,895 297,393 - 1,210,288
--------------------------------------------------------------------------
TOTAL REVENUES 30,565,336 74% 10,548,524 26% $ - 0% 41,113,860
--------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 8,252,109 3,211,415 - 11,463,524
Real Estate Taxes 2,610,811 851,376 - 3,462,187
Minority Interest in Properties
--------------------------------------------------------------------------
TOTAL EXPENSES 10,862,920 73% 4,062,791 27% - 0% 14,925,711
--------------------------------------------------------------------------
--------------------------------------------------------------------------
NET OPERATING INCOME 19,702,416 75% 6,485,733 25% - 0% 26,188,149
==========================================================================
OTHER INCOME (EXPENSES)
Management Company Revenue - - 2,181,280 2,181,280
Interest Income - - 141,506 141,506
GENERAL & ADMINISTRATIVE:
Corporate Payroll - - (3,636,227) (3,636,227)
Other G&A Expenses - - (2,690,064) (2,690,064)
--------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 19,702,416 89% 6,485,733 29% (4,003,505) -18% 22,184,644
--------------------------------------------------------------------------
Interest Expense (2)(3) (6,808,975) (3,687,021) (90,892) (10,586,889)
Depreciation & Amortization (5,821,594) (1,468,172) (7,289,766)
--------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (12,630,569) (5,155,193) (90,892) (17,876,655)
--------------------------------------------------------------------------
Gains (losses) on sales of interests in
Real Estate 1,191,492 - 1,191,492
--------------------------------------------------------------------------
Income before Minority Interest 8,263,339 1,330,540 (4,094,397) 5,499,481
--------------------------------------------------------------------------
Minority Interest of O.P. Unitholders - - (286,405) (286,405)
--------------------------------------------------------------------------
Income from Operations 8,263,339 1,330,540 (4,380,802) 5,213,076
--------------------------------------------------------------------------
DISCONTINUED OPERATIONS:
Income from Disposed Real Estate - - - -
Minority Interest of O.P. Unitholders (236,046) (236,046)
Gain (losses) on Disposition of Discontinued
Operations -
--------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - (236,046) (236,046)
--------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - - -
--------------------------------------------------------------------------
NET INCOME $ 8,263,339 166% $ 1,330,540 27% $ (4,616,848) -93% $ 4,977,030
==========================================================================
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the
Company'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) Capitalized interest expense for the line of credit and construction loans
of $195,466 is not included in the quarter ended 3/31/04 and $378,076 is not
included in the quarter ended 3/31/03.
(3) Interest expense from bank loans are classified as corporate in 2004.
NOTE: RECONCILIATION TO GAAP IS ON PAGES 32 TO 35.
PAGE 7
PENNSYLVANIA REIT [PREIT LOGO] PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) NYSE(R)
INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Line of Business) Q1 04
(3 MONTHS ENDED 3/31/04)
--------------------------------------------------------------------------- -------
OTHER COMBINED TOTAL %
RETAIL PROPERTIES CORPORATE TOTAL CHANGE
--------------------------------------------------------------------------- -------
REAL ESTATE OPERATING REVENUES
Base Rents $ 69,273,261 $ 85,156 $ - $ 69,358,417 104.7%
Less Vacancies and Concessions - - - -100.0%
Straight-Lining of Base Rents 1,349,222 - - 1,349,222 261.8%
Percentage Rents 2,552,808 - - 2,552,808 478.2%
Expense Reimbursables 32,363,966 11,675 32,375,641 406.2%
Lease Termination 26,689 - - 26,689 N/A
Other Real Estate Revenues 3,066,170 - - 3,066,170 153.3%
--------------------------------------------------------------------------- -------
TOTAL REVENUES 108,632,116 100% 96,831 0% - - 108,728,947 164.5%
--------------------------------------------------------------------------- -------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 32,798,607 3,225 - 32,801,832 186.1%
Real Estate Taxes 9,743,121 9,050 - 9,752,171 181.7%
Minority Interest in Properties 427,404 - - 427,404 N/A
--------------------------------------------------------------------------- -------
TOTAL EXPENSES 42,969,132 100% 12,275 0% - - 42,981,407 188.0%
--------------------------------------------------------------------------- -------
=========================================================================== =======
NET OPERATING INCOME 65,662,984 100% 84,556 0% - - 65,747,540 151.1%
=========================================================================== =======
TOTAL OTHER INCOME (EXPENSES)
Management Company Revenue - - 2,458,343 2,458,343 12.7%
Interest Income - - 253,728 253,728 79.3%
GENERAL AND ADMINISTRATIVE:
Corporate Payroll - - (6,692,085) (6,692,085) 84.0%
Other General & Administrative - - (4,118,759) (4,118,759) 53.1%
=========================================================================== =======
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 65,662,984 114% 84,556 0% (8,098,773) -14% 57,648,767 159.9%
=========================================================================== =======
Interest Expense (2)(3) (19,091,687) - (1,657,535) (20,749,222) 96.0%
Depreciation & Amortization (26,409,296) (12,540) - (26,421,836) 262.5%
--------------------------------------------------------------------------- -------
TOTAL OTHER INCOME (EXPENSES) (45,500,983) (12,540) (1,657,535) (47,171,058) 163.9%
--------------------------------------------------------------------------- -------
Gains(losses) on sales of interests in Real
Estate - - - - N/A
--------------------------------------------------------------------------- -------
Income before Minority Interest 20,162,001 72,016 (9,756,308) 10,477,709 90.5%
--------------------------------------------------------------------------- -------
Minority Interest of O.P. Unitholders - - (783,938) (783,938) -173.7%
--------------------------------------------------------------------------- -------
Income from Operations 20,162,001 72,016 (10,540,246) 9,693,771 -86.0%
--------------------------------------------------------------------------- -------
DISCONTINUED OPERATIONS:
Income from Disposed Real Estate - - - - N/A
Minority Interest of O.P. Unitholders (180,440) (180,440) N/A
Gain (losses) on Disposition of Discontinued
Operations (550,000) (550,000) N/A
--------------------------------------------------------------------------- -------
TOTAL DISCONTINUED OPERATIONS - - (730,440) (730,440) N/A
--------------------------------------------------------------------------- -------
Extraordinary item (Loss on early
extinguishment of debt) - - - N/A
--------------------------------------------------------------------------- -------
NET INCOME $ 20,162,001 225% $ 72,016 1% $ (11,270,686) -126% $ 8,963,331 80.1%
=========================================================================== =======
(Line of Business) Q1 03
(3 MONTHS ENDED 3/31/03)
---------------------------------------------------------------------------------------
OTHER COMBINED
RETAIL MULTIFAMILY PROPERTIES CORPORATE TOTAL
---------------------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents $ 18,034,781 $ 15,770,490 $ 83,421 $ - $ 33,888,692
Less Vacancies and Concessions - (1,520,368) - - (1,520,368)
Straight-Lining of Base Rents 372,868 - - - 372,868
Percentage Rents 441,497 - - - 441,497
Expense Reimbursables 6,396,086 - - - 6,396,086
Lease Termination 263,506 61,291 - 324,797
Other Real Estate Revenues 599,352 611,311 (375) - 1,210,288
---------------------------------------------------------------------------------------
TOTAL REVENUES 26,108,090 64% 14,922,724 36% 83,046 0% - - 41,113,860
---------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 6,418,980 5,041,121 3,423 - 11,463,524
Real Estate Taxes 2,062,218 1,399,072 897 - 3,462,187
Minority Interest in Properties
---------------------------------------------------------------------------------------
TOTAL EXPENSES 8,481,198 57% 6,440,193 43% 4,320 0% - - 14,925,711
---------------------------------------------------------------------------------------
=======================================================================================
NET OPERATING INCOME 17,626,892 67% 8,482,531 32% 78,726 0% - - 26,188,149
=======================================================================================
TOTAL OTHER INCOME (EXPENSES)
Management Company Revenue - - - 2,181,280 2,181,280
Interest Income - - - 141,506 141,506
GENERAL AND ADMINISTRATIVE: - -
Corporate Payroll - - - (3,636,227) (3,636,227)
Other General & Administrative - - - (2,690,064) (2,690,064)
=======================================================================================
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 17,626,892 79% 8,482,531 38% 78,726 0% (4,003,505) -18% 22,184,644
=======================================================================================
Interest Expense (2)(3) (6,779,898) (3,716,099) - (90,892) (10,586,889)
Depreciation & Amortization (4,822,017) (2,454,834) (12,915) - (7,289,766)
---------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (11,601,915) (6,170,933) (12,915) (90,892) (17,876,655)
---------------------------------------------------------------------------------------
Gains(losses) on sales of interests in Real
Estate 1,191,492 - - 1,191,492
---------------------------------------------------------------------------------------
Income before Minority Interest 7,216,469 2,311,598 65,811 (4,094,397) 5,499,481
---------------------------------------------------------------------------------------
Minority Interest of O.P. Unitholders - - - (286,405) (286,405)
---------------------------------------------------------------------------------------
Income from Operations 7,216,469 2,311,598 65,811 (4,380,802) 5,213,076
---------------------------------------------------------------------------------------
DISCONTINUED OPERATIONS:
Income from Disposed Real Estate - - - - -
Minority Interest of O.P. Unitholders (236,046) (236,046)
Gain (losses) on Disposition of Discontinued
Operations - -
---------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - - - (236,046) (236,046)
---------------------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - - - - -
---------------------------------------------------------------------------------------
NET INCOME $ 7,216,469 145% $ 2,311,598 46% $ 65,811 1% $ (4,616,848) -93% $ 4,977,030
=======================================================================================
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the
Company'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) Capitalized interest expense for the line of credit and construction loans
of $195,466 is not included in the quarter ended 3/31/04 and $378,076 is not
included in the quarter ended 3/31/03.
(3) Interest expense from bank loans are classified as corporate in 2004.
NOTE: RECONCILIATION TO GAAP IS ON PAGES 32 TO 35.
PAGE 8
PENNSYLVANIA REIT [PREIT LOGO] PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) NYSE(R)
RETAIL INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Property Status)
Q1 04
(3 MONTHS ENDED 3/31/04)
----------------------------------------------------------------
COMBINED
TOTAL WO JVS
----------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 69,273,261 $ 64,117,741 $ 5,155,520
Straight-Lining of Base Rents 1,349,222 1,309,785 39,437
Percentage Rents 2,552,808 2,315,761 237,047
Expense Reimbursables 32,363,966 30,773,563 1,590,403
Lease Termination and Other Income 26,689 26,689 -
Other Real Estate Revenues 3,066,170 2,900,734 165,436
----------------------------------------------------------------
TOTAL REVENUES 108,632,116 101,444,273 93% 7,187,843 7%
----------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 32,798,607 31,081,039 1,717,568
Real Estate Taxes 9,743,121 9,165,852 577,269
Minority Interest in Properties 427,404 427,404 -
----------------------------------------------------------------
Total Operating Expenses 42,969,132 40,674,295 95% 2,294,837 5%
================================================================
NET OPERATING INCOME 65,662,984 60,769,978 93% 4,893,006 7%
================================================================
OTHER INCOME (EXP.)
Interest Expense (19,091,687) (17,041,328) (2,050,359)
Depreciation & Amortization (26,409,296) (25,331,335) (1,077,961)
----------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (45,500,983) (42,372,663) (3,128,320)
----------------------------------------------------------------
Gains (losses) on sales of int. in R.E - - -
----------------------------------------------------------------
Income before Minority Int. 20,162,001 18,397,315 1,764,686
----------------------------------------------------------------
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 $ 20,162,001 $ 18,397,315 91% $ 1,764,686 9%
================================================================
----------------------------------------------------------------
% CHANGE % CHANGE % CHANGE
TOTAL WO JVS
----------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents 284.1% 457.1% -21.0%
Straight-Lining of Base Rents 261.8% 294.8% -4.1%
Percentage Rents 478.2% 748.6% 40.6%
Expense Reimbursables 406.0% 688.8% -36.3%
Lease Termination and Other Income N/A N/A N/A
Other Real Estate Revenues 411.6% 763.9% -37.2%
----------------------------------------------------------------
TOTAL REVENUES 316.1% 510.8% -24.3%
----------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 411.0% 763.1% -39.0%
Real Estate Taxes 372.5% 608.4% -24.9%
Minority Interest in Properties N/A N/A N/A
----------------------------------------------------------------
Total Operating Expenses 406.6% 730.9% -36.0%
================================================================
NET OPERATING INCOME 272.5% 418.8% -17.2%
================================================================
OTHER INCOME (EXP.)
Interest Expense 181.6% 404.3% -39.7%
Depreciation & Amortization 447.7% 623.7% -18.5%
----------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) 292.2% 515.9% -33.8%
----------------------------------------------------------------
Gains (losses) on sales of int. in R.E N/A N/A N/A
----------------------------------------------------------------
Income before Minority Int. 179.4% 205.3% 48.3%
----------------------------------------------------------------
DISCONTINUED OPERATIONS:
----------------------------------------------------------------
Income from Disposed Real Estate N/A 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 extinguishments of debt) N/A N/A N/A
----------------------------------------------------------------
NET INCOME 179.4% 205.3% 48.3%
================================================================
[RESTUBBED TABLE]
Q1 03
(3 MONTHS ENDED 3/31/03)
----------------------------------------------------------------
COMBINED
TOTAL WO JVS
----------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 18,034,781 $ 11,509,300 $ 6,525,481
Straight-Lining of Base Rents 372,868 331,733 41,135
Percentage Rents 441,497 272,895 168,602
Expense Reimbursables 6,396,086 3,901,177 2,494,909
Lease Termination and Other Income 263,506 258,750 4,756
Other Real Estate Revenues 599,352 335,764 263,588
----------------------------------------------------------------
TOTAL REVENUES 26,108,090 16,609,619 64% 9,498,471 36%
----------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 6,418,980 3,601,081 2,817,899
Real Estate Taxes 2,062,218 1,293,945 768,273
Minority Interest in Properties - - -
----------------------------------------------------------------
Total Operating Expenses 8,481,198 4,895,026 58% 3,586,172 42%
================================================================
NET OPERATING INCOME 17,626,892 11,714,593 66% 5,912,299 34%
================================================================
OTHER INCOME (EXP.)
Interest Expense (6,779,898) (3,379,281) (3,400,616)
Depreciation & Amortization (4,822,017) (3,500,126) (1,321,891)
----------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (11,601,915) (6,879,407) (4,722,507)
----------------------------------------------------------------
Gains (losses) on sales of int. in R.E 1,191,492 1,191,492 -
----------------------------------------------------------------
Income before Minority Int. 7,216,469 6,026,678 1,189,792
----------------------------------------------------------------
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 $ 7,216,469 $ 6,026,678 84% $ 1,189,792 16%
================================================================
SAME STORE COMPARISON
Q1 04
(3 MONTHS ENDED 3/31/04)
- ------------------------------------------------------------------------------------------------------------------------------------
% CHANGE
COMBINED TOTAL SAME NEW REDEV DIVEST SAME STORE
- ------------------------------------------------------------------------------------------------------------------------------------
Base Rents $69,273,261 $ 15,618,587 $ 51,538,427 $ 2,116,248 $ - 4.3%
Straight-Lining of Base Rents 1,349,222 161,415 1,173,484 14,323 - -39.3%
Percentage Rents 2,552,808 491,379 2,042,561 18,869 - 19.3%
Expense Reimbursables 32,363,966 4,721,787 26,536,130 1,106,050 - 1.2%
Lease Termination 26,689 - 26,689 - - N/A
Other Real Estate Revenues 3,066,170 378,349 2,586,732 101,089 - -2.9%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 108,632,116 21,371,516 20% 83,904,022 77% 3,356,579 3% - 0% 1.9%
- ------------------------------------------------------------------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 32,798,607 4,699,506 27,170,976 928,125 - 3.8%
Real Estate Taxes 9,743,121 1,641,070 7,870,152 231,899 - -2.2%
Minority Interest in Properties 427,404 - 427,404 - N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 42,969,132 6,340,576 15% 35,468,532 83% 1,160,024 3% - 0% 2.2%
- ------------------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 65,662,984 15,030,940 23% 48,435,490 74% 2,196,555 3% - 0% 1.8%
====================================================================================================================================
OTHER INCOME (EXP.)
Interest Expense (19,091,687) (4,633,889) (13,687,027) (770,772) - -7.7%
Depreciation & Amortization (26,409,296) (5,029,412) (20,826,223) (553,661) - 22.7%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (45,500,983) (9,663,301) (34,513,250) (1,324,433) - 5.9%
====================================================================================================================================
Gain (losses) on sales of int. in R.E. - - - N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Income before Minority Int. 20,162,001 5,367,639 13,922,240 872,122 - -4.9%
- ------------------------------------------------------------------------------------------------------------------------------------
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 $20,162,001 $ 5,367,639 27% $ 13,922,240 69% $ 872,122 4% $ - 0% -4.9%
====================================================================================================================================
[RESTUBBED TABLE]
- ------------------------------------------------------------------------------------------------------------------------------------
Q1 03
(3 MONTHS ENDED 3/31/03)
- ------------------------------------------------------------------------------------------------------------------------------------
COMBINED TOTAL SAME NEW REDEV DIVEST
- ------------------------------------------------------------------------------------------------------------------------------------
Base Rents $18,034,781 $ 14,978,710 $ 1,024,446 $2,031,625 $ -
Straight-Lining of Base Rents 372,868 265,881 87,843 19,144 -
Percentage Rents 441,497 411,956 7,329 22,212 -
Expense Reimbursables 6,396,086 4,666,652 827,436 901,998 -
Lease Termination 263,506 258,750 4,756 - -
Other Real Estate Revenues 599,352 389,490 88,049 121,813 -
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL REVENUES 26,108,090 20,971,439 80% 2,039,859 8% 3,096,792 12% -
====================================================================================================================================
R.E. OPERATING EXPENSES
Operating and Maintenance 6,418,980 4,527,947 1,061,529 829,504 -
Real Estate Taxes 2,062,218 1,677,258 169,178 215,782 -
Minority Interest in Properties - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 8,481,198 6,205,205 73% 1,230,707 15% 1,045,286 12% -
- ------------------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 17,626,892 14,766,234 84% 809,152 5% 2,051,506 12% -
====================================================================================================================================
OTHER INCOME (EXP.)
Interest Expense (6,779,898) (5,022,291) (987,576) (770,031) -
Depreciation & Amortization (4,822,017) (4,100,466) (66,936) (654,615) -
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (11,601,915) (9,122,757) (1,054,512) (1,424,646) -
- ------------------------------------------------------------------------------------------------------------------------------------
Gain (losses) on sales of int. in R.E. 1,191,492 1,191,492 -
- ------------------------------------------------------------------------------------------------------------------------------------
Income before Minority Int. 7,216,469 5,643,477 946,132 626,860 -
- ------------------------------------------------------------------------------------------------------------------------------------
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 $ 7,216,469 $ 5,643,477 78% $ 946,132 13% $ 626,860 9% $ -
====================================================================================================================================
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the
Company'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.
NOTE: RECONCILIATION TO GAAP IS ON PAGES 32 TO 35.
PENNSYLVANIA REIT [PREIT LOGO] PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) NYSE(R)
RETAIL INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Property Subtype)
Q1 04
(3 MONTHS ENDED 3/31/04)
COMBINED
TOTAL ENCLOSED MALL POWER CENTER STRIP CENTER
-------------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 69,273,261 $ 60,983,081 $ 6,711,105 $ 1,579,075
Straight-Lining of Base Rents 1,349,222 1,238,280 115,322 (4,380)
Percentage Rents 2,552,808 2,469,787 83,021 -
Expense Reimbursables 32,363,966 30,332,284 1,451,009 580,673
Lease Termination and Other Income 26,689 26,689 - -
Other Real Estate Revenues 3,066,170 3,014,148 47,572 4,450
-------------------------------------------------------------------------
TOTAL REVENUES 108,632,116 98,064,269 90% 8,408,029 8% 2,159,818 2%
-------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 32,798,607 31,348,341 1,026,953 423,313
Real Estate Taxes 9,743,121 8,811,174 730,649 201,298
Minority Interest in Properties 427,404 427,404 - -
-------------------------------------------------------------------------
Total Operating Expenses 42,969,132 40,586,919 94% 1,757,602 4% 624,611 1%
=========================================================================
NET OPERATING INCOME 65,662,984 57,477,350 88% 6,650,427 10% 1,535,207 2%
=========================================================================
OTHER INCOME (EXP.)
Interest Expense (19,091,687) (17,417,266) (1,637,671) (36,750)
Depreciation & Amortization (26,409,296) (23,973,220) (2,006,178) (429,898)
-------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (45,500,983) (41,390,486) (3,643,849) (466,648)
-------------------------------------------------------------------------
Gains(losses) on sales of int. in R.E. - - - -
-------------------------------------------------------------------------
Income before Minority Int. 20,162,001 16,086,864 3,006,578 1,068,559
-------------------------------------------------------------------------
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 $ 20,162,001 $ 16,086,864 80% $ 3,006,578 15% $ 1,068,559 5%
=========================================================================
[RESTUBBED TABLE]
% CHANGE % CHANGE % CHANGE % CHANGE
TOTAL ENCLOSED MALL POWER CENTER STRIP CENTER
-------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents 284.1% 499.2% 4.5% 10.1%
Straight-Lining of Base Rents 261.8% 990.9% -43.4% -107.9%
Percentage Rents 478.2% 570.8% 13.3% N/A
Expense Reimbursables 406.0% 577.2% 5.9% 6.2%
Lease Termination and Other Income N/A N/A N/A N/A
Other Real Estate Revenues 411.6% 450.8% 5.5% -36.9%
-------------------------------------------------------
TOTAL REVENUES 316.1% 522.0% 1.3% 5.7%
-------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 411.0% 524.4% -1.4% 18.7%
Real Estate Taxes 372.5% 719.5% -8.6% 7.1%
Minority Interest in Properties N/A N/A N/A N/A
-------------------------------------------------------
Total Operating Expenses 406.6% 565.8% -4.5% 14.7%
=======================================================
NET OPERATING INCOME 272.5% 494.4% 3.0% 2.5%
=======================================================
OTHER INCOME (EXP.)
Interest Expense 181.6% 360.0% -43.0% -69.0%
Depreciation & Amortization 447.7% 854.6% 6.6% 0.4%
-------------------------------------------------------
TOTAL OTHER INCOME (EXP.) 292.2% 557.2% -23.4% -14.6%
-------------------------------------------------------
Gains(losses) on sales of int. in R.E. N/A N/A N/A N/A
-------------------------------------------------------
Income before Minority Int. 179.4% 377.0% 76.8% -50.1%
DISCONTINUED OPERATIONS:
-------------------------------------------------------
Income from Disposed Real Estate N/A 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 179.4% 377.0% 76.8% -50.1%
=======================================================
[RESTUBBED TABLE]
Q1 03
(3 MONTHS ENDED 3/31/03)
COMBINED
TOTAL ENCLOSED MALL POWER CENTER STRIP CENTER
-------------------------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 18,034,781 $ 10,177,845 $ 6,423,296 $ 1,433,640
Straight-Lining of Base Rents 372,868 113,506 203,778 55,584
Percentage Rents 441,497 368,201 73,296 -
Expense Reimbursables 6,396,086 4,479,314 1,370,026 546,746
Lease Termination and Other Income 263,506 79,756 183,750 -
Other Real Estate Revenues 599,352 547,222 45,078 7,052
-------------------------------------------------------------------------------------
TOTAL REVENUES 26,108,090 15,765,844 60% 8,299,224 32% 2,043,022 8%
-------------------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 6,418,980 5,020,353 1,041,944 356,683
Real Estate Taxes 2,062,218 1,075,189 799,155 187,874
Minority Interest in Properties - - - -
-------------------------------------------------------------------------------------
Total Operating Expenses 8,481,198 6,095,542 72% 1,841,099 22% 544,557 6%
=====================================================================================
NET OPERATING INCOME 17,626,892 9,670,302 55% 6,458,125 37% 1,498,465 9%
=====================================================================================
OTHER INCOME (EXP.)
Interest Expense (6,779,898) (3,786,156) (2,875,280) (118,461)
Depreciation & Amortization (4,822,017) (2,511,390) (1,882,580) (428,047)
-------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (11,601,915) (6,297,546) (4,757,860) (546,508)
-------------------------------------------------------------------------------------
Gains(losses) on sales of int. in R.E. 1,191,492 - - 1,191,492
-------------------------------------------------------------------------------------
Income before Minority Int. 7,216,469 3,372,756 1,700,265 2,143,449
-------------------------------------------------------------------------------------
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 $ 7,216,469 $ 3,372,756 47% $ 1,700,265 24% $ 2,143,449 30%
=====================================================================================
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the
Company'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.
SAME STORE COMPARISON
Q1 04
(3 MONTHS ENDED 3/31/04)
COMBINED
TOTAL ENCLOSED MALL POWER CENTER STRIP CENTER
----------------------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 15,618,587 $ 7,554,128 $ 6,711,105 $ 1,353,354
Straight-Lining of Base Rents 161,415 52,432 115,322 (6,339)
Percentage Rents 491,379 408,358 83,021 -
Expense Reimbursables 4,721,787 2,884,473 1,451,009 386,305
Lease Termination - - - -
Other Real Estate Revenues 378,349 326,727 47,572 4,050
----------------------------------------------------------------------------------
TOTAL REVENUES 21,371,516 11,226,117 53% 8,408,029 39% 1,737,370 8%
----------------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 4,699,506 3,349,818 1,026,953 322,735
Real Estate Taxes 1,641,070 761,039 730,649 149,382
Minority Interest in Properties - - - -
----------------------------------------------------------------------------------
Total Operating Expenses 6,340,576 4,110,857 65% 1,757,602 28% 472,117 7%
==================================================================================
NET OPERATING INCOME 15,030,940 7,115,260 47% 6,650,427 44% 1,265,253 8%
==================================================================================
OTHER INCOME (EXP.)
Interest Expense (4,633,889) (2,959,468) (1,637,671) (36,750)
Depreciation & Amortization (5,029,412) (2,653,623) (2,006,178) (369,611)
----------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (9,663,301) (5,613,091) (3,643,849) (406,361)
----------------------------------------------------------------------------------
Gain (losses) on sales of int. in R.E - - - -
----------------------------------------------------------------------------------
Income before Minority Int. 5,367,639 1,502,169 3,006,578 858,892
----------------------------------------------------------------------------------
Extraordinary item (Loss on
early extinguishment of debt) - - - -
----------------------------------------------------------------------------------
NET INCOME $ 5,367,639 $ 1,502,169 28% $ 3,006,578 56% $ 858,892 16%
==================================================================================
[RESTUBBED TABLE]
% CHANGE % CHANGE % CHANGE % CHANGE
TOTAL (1) ENCLOSED MALL POWER CENTER STRIP CENTER
-----------------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents 4.3% 4.8% 4.5% 0.4%
Straight-Lining of Base Rents -39.3% -22.7% -43.4% 11.5%
Percentage Rents 19.3% 20.6% 13.3% N/A
Expense Reimbursables 1.2% 1.0% 5.9% -12.3%
Lease Termination N/A N/A N/A N/A
Other Real Estate Revenues -2.9% -3.2% -5.5% -42.5%
-----------------------------------------------------------------------------
TOTAL REVENUES 1.9% 3.2% 1.3% -2.9%
-----------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 3.8% 3.5% -1.4% 28.8%
Real Estate Taxes -2.2% 3.9% -8.6% 2.7%
Minority Interest in Properties N/A N/A N/A N/A
-----------------------------------------------------------------------------
Total Operating Expenses 2.2% 3.6% -4.5% 19.2%
=============================================================================
NET OPERATING INCOME 1.8% 2.9% 3.0% -9.2%
=============================================================================
OTHER INCOME (EXP.)
Interest Expense -7.7% 38.6% -42.5% -2.9%
Depreciation & Amortization 22.7% 42.9% 6.6% 2.4%
-----------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) 5.9% 40.6% -23.0% 1.9%
-----------------------------------------------------------------------------
Gain (losses) on sales of int. in R.E N/A N/A N/A N/A
-----------------------------------------------------------------------------
Income before Minority Int. -4.9% -48.6% 74.1% -13.7%
-----------------------------------------------------------------------------
Extraordinary item (Loss on
early extinguishment of debt)
-----------------------------------------------------------------------------
NET INCOME -4.9% -48.6% 74.1% -13.7%
=============================================================================
[RESTUBBED TABLE]
Q1 03
(3 MONTHS ENDED 3/31/03)
COMBINED
TOTAL ENCLOSED MALL POWER CENTER STRIP CENTER
-----------------------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $14,978,710 $ 7,207,288 $ 6,423,296 $ 1,348,126
Straight-Lining of Base Rents 265,881 67,786 203,778 (5,683)
Percentage Rents 411,956 338,660 73,296 -
Expense Reimbursables 4,666,652 2,856,171 1,370,026 440,455
Lease Termination 258,750 75,000 183,750 -
Other Real Estate Revenues 389,490 337,363 45,078 7,049
-----------------------------------------------------------------------------------
TOTAL REVENUES 20,971,439 10,882,268 52% 8,299,224 40% 1,789,947 9%
-----------------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 4,527,947 3,235,364 1,041,944 250,639
Real Estate Taxes 1,677,258 732,664 799,155 145,439
Minority Interest in Properties - - - -
-----------------------------------------------------------------------------------
Total Operating Expenses 6,205,205 3,968,028 64% 1,841,099 30% 396,078 6%
===================================================================================
NET OPERATING INCOME 14,766,234 6,914,240 47% 6,458,125 44% 1,393,869 9%
===================================================================================
OTHER INCOME (EXP.)
Interest Expense (5,022,291) (2,135,656) (2,848,785) (37,850)
Depreciation & Amortization (4,100,466) (1,856,775) (1,882,580) (361,111)
-----------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (9,122,757) (3,992,431) (4,731,365) (398,961)
-----------------------------------------------------------------------------------
Gain (losses) on sales of int. in R.E - - - -
-----------------------------------------------------------------------------------
Income before Minority Int. 5,643,477 2,921,809 1,726,760 994,908
Extraordinary item (Loss on
early extinguishment of debt) - - -
-----------------------------------------------------------------------------------
NET INCOME $ 5,643,477 $ 2,921,809 52% $ 1,726,760 31% $ 994,908 18%
===================================================================================
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the
Company'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.
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) [PREIT LOGO]
FUNDS FROM OPERATIONS (1) Q1:3/31/04 % CHANGE Q1:3/31/03
---------- -------- ----------
NET INCOME $ 8,963,331 80.1% $4,977,030
Dividends on preferred shares (3,403,125) -
----------- ----------
NET INCOME ALLOCABLE TO COMMON SHARES $ 5,560,206 11.7% $4,977,030
Minority Interest in Operating Partnership-operations 783,938 173.7% 286,405
Minority Interest in Operating Partnership-discontinued operations 180,440 N/A 236,046
(Gain) losses on sales of interests in real estate - N/A (1,191,492)
(Gain) losses on disposition of discontinued operations 550,000 N/A -
Depreciation & Amortization: (2)
Wholly owned and consolidated partnerships 25,278,875 633.1% 3,448,041
Unconsolidated partnerships and joint ventures 1,077,961 -26.6% 1,468,172
Discontinued operations - N/A 2,308,553
----------- ------ -----------
FFO $33,431,420 189.9% $11,532,755
----------- ------ -----------
Weighted Average Shares and O.P. Units Outstanding 39,239,401 114.3% 18,308,057
----------- ------ -----------
NET INCOME PER SHARE $0.16 -47.8% $0.30
----------- ------ -----------
FFO PER SHARE $0.85 35.3% $0.63
----------- ------ -----------
FUNDS AVAILABLE FOR DISTRIBUTION
FFO $33,431,420 189.9% $11,532,755
Adjustments:
Straight-lining of base rents (1,349,222) 261.8% (372,868)
Recurring capital expenditures (854,898) 72.0% (497,008)
Amortization of debt premium (4,864,640) N/A -
----------- ------ -----------
FAD $26,362,660 147.2% $10,662,879
----------- ------ -----------
Weighted Average Shares and O.P. Units Outstanding 39,239,401 114.3% 18,308,057
----------- ------ -----------
FAD PER SHARE $0.67 15.4% $0.58
----------- ------ -----------
PAYOUT RATIOS
DIVIDEND PER COMMON SHARE $0.54 5.9% $0.51
----------- ------ -----------
----------- ------ -----------
PAYOUT RATIO OF NET INCOME 343.8% 174.3% 169.5%
=========== ====== ===========
PAYOUT RATIO OF FFO 63.4% -17.6% 81.0%
=========== ====== ===========
PAYOUT RATIO OF FAD 80.4% -7.2% 87.6%
----------- ------ -----------
(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.
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) [PREIT LOGO] PEI
LISTED
NYSE
KEY RATIOS
- ------------------------------------------------------------------------------------------------------------------------------
Q1: 3/31/2004 Q1: 3/31/2003
------------- -------------
COVERAGE RATIO (1)
Interest Coverage Ratio (EBITDA/Interest Expense) 2.78 2.10
- -----------------------------------------------------------------------------------------------------------------------------
LEVERAGE RATIOS (1)
Debt / Total Market Capitalization 49.3% 54.1%
- -----------------------------------------------------------------------------------------------------------------------------
OPERATING RATIOS (1)
NOI/Real Estate Revenues 60.5% 63.7%
- -----------------------------------------------------------------------------------------------------------------------------
RETURN ON INVESTMENT RATIOS (1)
Total FFO/Equity Market Capitalization, net of preferred shares 2.2% 2.2%
FFO multiple (Closing share price / Annualized FFO per share for quarter) (2) 11.05 11.37
NOI/Total Market Capitalization at Period End 2.1% 2.3%
NOI/Investment in Real Estate at Period End 2.6% 2.7%
- -----------------------------------------------------------------------------------------------------------------------------
PAYOUT RATIOS
FFO Payout Ratio (Dividend/FFO) per Share 63.4% 81.0%
FAD Payout Ratio (Dividend/FAD) per Share 80.4% 87.6%
- -----------------------------------------------------------------------------------------------------------------------------
(1) The calculation of these ratios includes wholly owned properties, PREIT's
proportional share of joint venture properties and properties classified as
held for sale.
(2) Calculations based on closing stock price at the end of the quarter.
PENNSYLVANIA REIT
PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) [PREIT LOGO] LISTED
DEBT SCHEDULE OF WHOLLY OWNED PROPERTIES NYSE
PREIT's Total PREIT's PREIT's
Ownership Investment Investment Accumulated
Property Name Interest to Date to Date (1) Depreciation
- ------------- --------- ---------- ---------- ------------
RETAIL PROPERTIES
Beaver Valley Mall 100% $ 55,914,455 $ 55,914,455 $ 3,099,583
Bradley Square 100% 7,317,462 7,317,462 -
Capital City (2) 100% 79,462,253 79,462,253 726,822
Chambersburg Mall (2)(3) 89% 36,854,938 36,854,938 380,354
Cherry Hill Mall (4)(5)(6) 73% 203,720,555 185,170,408 4,520,558
Christiana Power I 100% 39,870,034 39,870,034 4,687,599
Creekview 100% 18,933,437 18,933,437 2,156,307
Crest Plaza Shopping Center 100% 16,380,269 16,380,269 1,048,435
Crossroads Mall 100% 32,628,383 32,628,383 417,760
Dartmouth Mall 100% 53,324,547 53,324,547 9,575,381
Echelon Mall 100% 16,561,595 16,561,595 1,072,413
Exton Square Mall (6) 100% 143,313,581 143,313,581 3,642,792
Festival at Exton 100% 18,983,896 18,983,896 2,247,167
Francis Scott Key Mall (3) 89% 66,872,005 66,872,005 877,163
Gallery at Market East 100% 48,305,302 48,305,302 1,173,687
Jacksonville Mall 100% 58,740,203 58,740,203 757,260
Logan Valley Mall (2)(3) 100% 81,644,632 81,644,632 1,038,211
Lycoming Mall (2)(3) 89% 56,015,697 56,015,697 561,580
Magnolia Mall 100% 57,207,072 57,207,072 7,870,880
Martinsburg Mall (3) 89% 17,930,182 17,930,182 -
Moorestown Mall 100% 74,936,458 74,936,458 2,840,682
Mount Berry Square 100% 16,467,178 16,467,178 -
New River Valley Mall (3) 89% 32,802,884 32,802,884 332,176
Nittany Mall (2)(3) 89% 45,435,095 45,435,095 438,412
North Hanover Mall (2)(3) 89% 27,532,919 27,532,919 303,779
Northeast Tower Center 100% 31,015,011 31,015,011 2,809,487
Northeast Tower Center-Home Depot 100% 13,578,891 13,578,891 1,357,889
Palmer Park Mall 100% 37,675,287 37,675,287 5,869,256
Patrick Henry Mall (3) 89% 98,477,203 98,477,203 930,916
Paxton Towne Centre 100% 53,433,498 53,433,498 4,831,494
Phillipsburg Mall (3) 89% 49,476,721 49,476,721 495,985
Plymouth Meeting Mall 100% 78,297,918 78,297,918 2,266,426
Prince Georges Plaza (6) 100% 86,566,029 86,566,029 11,075,910
Schuylkill Mall (2) 100% 11,464,538 11,464,538 -
Shenango Valley Mall (2) 100% 8,011,837 8,011,837 -
South Blanding Village 100% 9,502,950 9,502,950 3,242,231
South Mall (2)(3) 89% 30,844,344 30,844,344 326,859
The Commons at Magnolia 100% 9,885,682 9,885,682 1,042,967
Uniontown Mall (2)(3) 89% 28,778,779 28,778,779 338,450
Valley Mall 100% 82,834,325 82,834,325 1,146,072
Valley View Mall 100% 51,301,983 51,301,983 497,730
Viewmont Mall (2)(3) 89% 70,909,021 70,909,021 661,376
Washington Crown Center (2) 89% 46,805,107 46,805,107 762,421
West Manchester Mall (2)(3) 89% 35,256,909 35,256,909 -
Willow Grove Park 100% 170,901,884 170,901,884 7,737,029
Wiregrass Mall (6) 100% 40,630,494 40,630,494 492,989
Wyoming Valley Mall (2)(3) 100% 87,014,562 87,014,562 789,707
Land held for development 100% 9,397,945 9,397,945
- -----------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL RETAIL PROPERTIES $ 2,449,215,950 $ 2,430,665,803 $ 96,444,195
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PROPERTIES
ARA Services, Allentown, PA 100% $ 84,610 $ 84,610 $ 81,610
ARA Services, Pennsauken, NJ 100% 210,473 210,473 168,990
Interstate Container Corporation 100% 1,802,271 1,802,271 1,490,841
Sears Roebuck & Co. 100% 406,857 406,857 347,870
- -----------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL INDUSTRIAL AND LAND PROPERTIES $ 2,504,211 $ 2,504,211 $ 2,089,311
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR WHOLLY OWNED PROPERTIES $ 2,451,720,161 $ 2,433,170,014 $ 98,533,506
===================================================================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $ 276,594,507 $ 137,487,531 $ 32,248,911
===================================================================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
CORPORATE/LINE OF CREDIT
===================================================================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR WHOLLY OWNED AND JV PROPERTIES $ 2,728,314,668 $ 2,570,657,545 $ 130,782,417
===================================================================================================================================
[RESTUBBED TABLE]
PREIT's PREIT's
PREIT's Share of O/S PREIT's Share of Current
Depreciated Mortgage Debt and Share of Mortgage Debt Mortgage
Property Name Costs Mortgage Debt Premium Mortgage Premium Interest Rate
- ------------- ----------- --------------------- -------- ------------- -------------
RETAIL PROPERTIES
Beaver Valley Mall $ 52,814,872 $ 47,202,804 $ 47,202,804 $ - 7.36%
Bradley Square 7,317,462 - - - 0.00%
Capital City (2) 78,735,431 59,997,556 53,192,893 6,804,663 7.61%
Chambersburg Mall (2)(3) 36,474,584 20,828,111 18,975,791 1,852,320 7.43%
Cherry Hill Mall (4)(5)(6) 180,649,850 78,087,177 72,448,445 5,638,732 10.60%
59,564,918 59,564,918 - 5.00%
Christiana Power I 35,182,435 - - - 0.00%
Creekview 16,777,130 - - - 0.00%
Crest Plaza Shopping Center 15,331,834 - - - 0.00%
Crossroads Mall 32,210,623 14,370,811 13,528,790 842,021 7.39%
Dartmouth Mall 43,749,166 69,262,435 69,262,435 - 4.95%
Echelon Mall 15,489,182 - - - 0.00%
Exton Square Mall (6) 139,670,789 107,181,662 99,441,291 7,740,371 6.95%
Festival at Exton 16,736,729 - - - 0.00%
Francis Scott Key Mall (3) 65,994,842 36,449,193 33,207,633 3,241,560 7.43%
Gallery at Market East 47,131,615 - - - 0.00%
Jacksonville Mall 57,982,943 - - - 0.00%
Logan Valley Mall (2)(3) 80,606,421 59,360,115 54,081,002 5,279,113 7.43%
Lycoming Mall (2)(3) 55,454,117 36,449,194 33,207,633 3,241,561 7.43%
Magnolia Mall 49,336,192 20,579,879 20,579,879 - 8.20%
Martinsburg Mall (3) 17,930,182 18,224,597 16,603,817 1,620,780 7.43%
Moorestown Mall 72,095,776 63,573,021 63,573,021 - 4.95%
Mount Berry Square 16,467,178 - - - 0.00%
New River Valley Mall (3) 32,470,708 17,703,894 16,129,422 1,574,472 7.43%
Nittany Mall (2)(3) 44,996,683 31,242,666 28,463,686 2,778,980 7.43%
North Hanover Mall (2)(3) 27,229,140 20,828,111 18,975,791 1,852,320 7.43%
Northeast Tower Center 28,205,524 - - - 0.00%
Northeast Tower Center-Home Depot 12,221,002 12,500,000 12,500,000 - 7.40%
Palmer Park Mall 31,806,031 18,106,009 18,106,009 - 6.77%
Patrick Henry Mall (3) 97,546,287 52,590,980 47,913,871 4,677,109 7.43%
Paxton Towne Centre 48,602,004 - - - 0.00%
Phillipsburg Mall (3) 48,980,736 31,242,166 28,463,686 2,778,480 7.43%
Plymouth Meeting Mall 76,031,492 - - - 0.00%
Prince Georges Plaza (6) 75,490,119 43,602,093 41,690,351 1,911,742 8.70%
Schuylkill Mall (2) 11,464,538 18,240,244 18,240,244 - 7.25%
Shenango Valley Mall (2) 8,011,837 - - - 0.00%
South Blanding Village 6,260,719 - - - 0.00%
South Mall (2)(3) 30,517,485 15,621,083 14,231,843 1,389,240 7.43%
The Commons at Magnolia 8,842,715 - - - 0.00%
Uniontown Mall (2)(3) 28,440,329 24,993,733 22,770,949 2,222,784 7.43%
Valley Mall 81,688,253 - - - 0.00%
Valley View Mall 50,804,253 37,669,581 37,000,000 669,581 6.15%
Viewmont Mall (2)(3) 70,247,645 31,242,166 28,463,686 2,778,480 7.43%
Washington Crown Center (2) 46,042,686 - - - 0.00%
West Manchester Mall (2)(3) 35,256,909 28,117,950 25,617,317 2,500,633 7.43%
Willow Grove Park 163,164,855 113,025,315 109,075,764 3,949,551 8.39%
Wiregrass Mall (6) 40,137,505 30,000,000 30,000,000 - 3.12%
Wyoming Valley Mall (2)(3) 86,224,855 59,360,116 54,081,003 5,279,113 7.43%
Land held for development 9,397,945 - - - 0.00%
- ------------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL RETAIL PROPERTIES $ 2,334,221,608 $ 1,277,217,580 $ 1,206,593,974 $ 70,623,606 7.18%
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PROPERTIES
ARA Services, Allentown, PA $ 3,000 $ - $ - $ - 0.00%
ARA Services, Pennsauken, NJ 41,483 - - - 0.00%
Interstate Container Corporation 311,430 - - - 0.00%
Sears Roebuck & Co. 58,987 - - - 0.00%
- ------------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL INDUSTRIAL AND LAND PROPERTIES $ 414,900 $ - $ - $ - 0.00%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR WHOLLY OWNED PROPERTIES $ 2,334,636,508 $ 1,277,217,580 $ 1,206,593,974 $ 70,623,606 7.18%
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $ 105,238,620 $ 109,096,195 $ 109,096,195 $ - 7.47%
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
CORPORATE/LINE OF CREDIT $ 182,000,000 $ 182,000,000 $ -
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR WHOLLY OWNED AND JV PROPERTIES $ 2,439,875,128 $ 1,568,313,775 $ 1,497,690,169 $ 70,623,606 7.20%
====================================================================================================================================
[RESTUBBED TABLE]
Annual Mortgage
Mortgage Balance at Date of
Property Name Debt Service Maturity Maturity Notes
- ------------- ------------- ------------ -------- -------
RETAIL PROPERTIES
Beaver Valley Mall $ 3,972,402 $ 42,265,601 2012
Bradley Square
Capital City (2) 4,602,529 47,215,150 2012
Chambersburg Mall (2)(3) 1,762,666 17,199,298 2008
Cherry Hill Mall (4)(5)(6) 9,132,792 70,237,549 2005
2,789,582 58,148,407 2005
Christiana Power I - -
Creekview - -
Crest Plaza Shopping Center - -
Crossroads Mall 1,191,103 12,646,534 2008
Dartmouth Mall 4,483,668 57,594,279 2013
Echelon Mall
Exton Square Mall (6) 8,102,242 93,034,212 2008
Festival at Exton - -
Francis Scott Key Mall (3) 3,084,665 30,098,771 2008
Gallery at Market East
Jacksonville Mall
Logan Valley Mall (2)(3) 5,023,597 49,017,998 2008
Lycoming Mall (2)(3) 3,084,664 30,098,771 2008
Magnolia Mall 2,597,726 17,782,882 2007
Martinsburg Mall (3) 1,542,332 15,049,385 2008
Moorestown Mall 4,115,367 52,863,321 2013
Mount Berry Square
New River Valley Mall (3) 1,498,266 14,619,403 2008
Nittany Mall (2)(3) 2,643,998 25,798,946 2008
North Hanover Mall (2)(3) 1,762,666 17,199,298 2008
Northeast Tower Center - -
Northeast Tower Center-Home Depot 925,000 12,500,000 2005
Palmer Park Mall 1,661,220 15,674,394 2009
Patrick Henry Mall (3) 4,450,730 43,428,226 2008
Paxton Towne Centre - - -
Phillipsburg Mall (3) 2,643,998 25,798,946 2008
Plymouth Meeting Mall - - -
Prince Georges Plaza (6) 4,134,937 39,986,536 2007
Schuylkill Mall (2) 3,315,300 7,442,925 2008
Shenango Valley Mall (2) - - -
South Blanding Village - - -
South Mall (2)(3) 1,321,999 12,899,473 2008
The Commons at Magnolia - - -
Uniontown Mall (2)(3) 2,115,199 20,639,157 2008
Valley Mall - - -
Valley View Mall 2,275,500 34,589,149 2009
Viewmont Mall (2)(3) 2,643,998 25,798,946 2008
Washington Crown Center (2) - - -
West Manchester Mall (2)(3) 2,379,598 23,219,052 2008
Willow Grove Park 10,046,933 107,307,726 2006
Wiregrass Mall (6) 967,200 30,000,000 2005
Wyoming Valley Mall (2)(3) 5,023,597 49,017,998 2008
Land held for development - - -
- ------------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL RETAIL PROPERTIES $ 105,295,475 $ 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 $ 105,295,475 $ 1,099,172,333
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $ 10,205,588 $ 93,753,089
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
CORPORATE /LINE OF CREDIT
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR WHOLLY OWNED AND JV PROPERTIES $ 115,501,063 $ 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 the 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 financial reporting 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) Mortgage term does not include two 12 month extensions.
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) [PREIT LOGO] PEI
LISTED
DEBT SCHEDULE OF PARTNERSHIPS AND JOINT VENTURES NYSE(R)
- ----------------------------------------------------------------------------------------------------------------------------------
PREIT's PREIT's PREIT's
------- ------- -------
Ownership Total Investment Investment to Accumulated
--------- ---------------- ------------- -----------
Property Name Interest to Date Date(1) Depreciation
- ------------- -------- ------- ------- ------------
RETAIL PROPERTIES
Court at Oxford Valley 50% $ 55,612,574 $ 27,806,287 $ 4,223,216
Laurel Mall 40% 31,378,545 12,551,418 4,725,167
Lehigh Valley Mall 50% 29,735,754 14,867,877 9,716,083
Metroplex Shopping Center (Blue Route) 50% 84,695,412 42,347,706 3,636,406
Red Rose Commons 50% 23,880,020 11,940,010 1,372,823
Rio Mall 60% 8,219,542 4,931,725 2,427,252
Springfield Park I&II 50% 13,276,202 6,638,101 609,612
Whitehall Mall 50% 29,796,458 14,898,229 5,538,352
- ----------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL RETAIL PROPERTIES $ 276,594,507 $ 135,981,353 $ 32,248,911
- ----------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION IN PROGRESS/DEVELOPMENT
Pavilion at Market East 50% N/A $ 1,506,178 -
- ----------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL PROPERTIES UNDER DEVELOPMENT $ - $ 1,506,178 $ -
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $ 276,594,507 $ 137,487,531 $ 32,248,911
- ----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
PREIT's Share of
----------------
O/S Mortgage
------------
PREIT's Debt and PREIT's Share of
------- -------- ----------------
Depreciated Mortgage Debt PREIT's Share Mortgage Debt
----------- ------------- ------------- -------------
Property Name Costs Premium of Mortgage Premium
- ------------- ----- ------- ----------- -------
RETAIL PROPERTIES
Court at Oxford Valley $ 23,583,071 $ 21,684,686 $ 21,684,686 $ -
Laurel Mall 7,826,251 9,173,944 9,173,944 -
Lehigh Valley Mall 5,151,794 23,535,327 23,535,327 -
Metroplex Shopping Center (Blue Route) 38,711,300 32,050,857 32,050,857 -
Red Rose Commons 10,567,187 13,783,203 13,783,203 -
Rio Mall 2,504,473 - - -
Springfield Park I&II 6,028,489 1,834,859 1,834,859 -
Whitehall Mall 9,359,877 7,033,319 7,033,319 -
- -----------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL RETAIL PROPERTIES $ 103,732,442 $ 109,096,195 $ 109,096,195 $ -
- -----------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION IN PROGRESS/DEVELOPMENT
Pavilion at Market East $ 1,506,178 - $ - $ -
- -----------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL PROPERTIES UNDER DEVELOPMENT $ 1,506,178 $ - $ - $ -
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $ 105,238,620 $ 109,096,195 $ 109,096,195 $ -
- -----------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Current Annual Mortgage
------- ------ --------
Mortgages Mortgage Debt Balance at Date of
--------- ------------- ---------- -------
Property Name Interest Rates Service Maturity Maturity
- ------------- -------------- ------- -------- --------
RETAIL PROPERTIES
Court at Oxford Valley 8.02% $ 2,319,426 $ 15,966,965 2011
Laurel Mall 6.00% 661,904 7,819,521 2013
Lehigh Valley Mall 7.90% 2,479,260 21,750,440 2006
Metroplex Shopping Center (Blue Route) 7.25% 2,680,953 28,250,000 2011
Red Rose Commons 7.66% 1,220,048 12,425,422 2009
Rio Mall 0.00% - -
Springfield Park I&II 7.79% 202,561 1,411,804 2010
Whitehall Mall 6.77% 641,436 6,128,937 2008
- ---------------------------------------------------------------------------------------------------------------------
SUB-TOTAL RETAIL PROPERTIES 7.47% $ 10,205,588 $ 93,753,089
- ---------------------------------------------------------------------------------------------------------------------
CONSTRUCTION IN PROGRESS/DEVELOPMENT
Pavilion at Market East 0.00% - -
- ---------------------------------------------------------------------------------------------------------------------
SUB-TOTAL PROPERTIES UNDER DEVELOPMENT $ - $ - $ -
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
TOTAL FOR PARTNERSHIPS AND JOINT VENTURES 7.47% $ 10,205,588 $ 93,753,089
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Property Name Notes
- ------------- -----
RETAIL PROPERTIES
Court at Oxford Valley
Laurel Mall
Lehigh Valley Mall
Metroplex Shopping Center (Blue Route)
Red Rose Commons
Rio Mall
Springfield Park I&II
Whitehall Mall
- ---------------------------------------------------------------------------------------------------------
SUB-TOTAL RETAIL PROPERTIES
- ---------------------------------------------------------------------------------------------------------
CONSTRUCTION IN PROGRESS/DEVELOPMENT
Pavilion at Market East
- ---------------------------------------------------------------------------------------------------------
SUB-TOTAL PROPERTIES UNDER DEVELOPMENT
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
TOTAL FOR PARTNERSHIPS AND JOINT VENTURES
- ---------------------------------------------------------------------------------------------------------
(1) Includes development and CIP costs.
[PREIT LOGO] PEI
LISTED
NYSE(R)
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004)
DEBT ANALYSIS
OUTSTANDING DEBT
% OF TOTAL % OF TOTAL
FIXED RATE INDEBTEDNESS FLOATING RATE INDEBTEDNESS TOTAL
WHOLLY OWNED
Mortgage Notes Payable $1,247,217,580 79.5% $ 30,000,000 1.9% $1,277,217,580
Revolving Line of Credit - 0.0% - 0.0% -
Acquisition Term Loan & Unsecured Line of Credit 0.0% 0.0% -
-------------- ------------ --------------
SUB-TOTAL 1,247,217,580 79.5% 30,000,000 1.9% 1,277,217,580
PARTNERSHIPS AND JOINT VENTURES (AT PREIT'S SHARE)
Mortgage Notes Payable 109,096,195 7.0% - 0.0% 109,096,195
Revolving Line of Credit - 0.0% - 0.0% -
Construction loans payable - 0.0% - 0.0% -
-------------- ------------ --------------
SUB-TOTAL 109,096,195 7.0% - 0.0% 109,096,195
CORPORATE
Revolving Line of Credit 0.0% 182,000,000 11.6% 182,000,000
------------ --------------
SUB-TOTAL 0.0% 182,000,000 11.6% 182,000,000
TOTAL OUTSTANDING DEBT 1,356,313,775 212,000,000 1,568,313,775
SWAP - - -
-------------- ------------ --------------
TOTAL DEBT AFTER HEDGE $1,356,313,775 86.5% $212,000,000 13.5% $1,568,313,775
[RESTUBBED TABLE]
% OF TOTAL
INDEBTEDNESS
WHOLLY OWNED
Mortgage Notes Payable 81.4%
Revolving Line of Credit 0.0%
Acquisition Term Loan & Unsecured Line of Credit 0.0%
SUB-TOTAL 81.4%
PARTNERSHIPS AND JOINT VENTURES (AT PREIT'S SHARE)
Mortgage Notes Payable 7.0%
Revolving Line of Credit 0.0%
Construction loans payable 0.0%
SUB-TOTAL 7.0%
CORPORATE
Revolving Line of Credit 11.6%
SUB-TOTAL 11.6%
TOTAL OUTSTANDING DEBT
SWAP
TOTAL DEBT AFTER HEDGE 100.0%
OUTSTANDING PRINCIPAL BALANCE
-----------------------------
Fixed Rate Debt Mortgage Debt Premium Floating Rate
- --------------- --------------------- -------------
81% 5% 14%
WEIGHTED
WEIGHTED AVERAGE INTEREST RATES AVERAGE INTEREST
PRINCIPAL BALANCE RATE
Fixed Rate Debt $1,285,690,169 7.30%
Mortgage Debt Premium 70,623,606 N/A
Floating Rate Debt 212,000,000 3.12%
-------------- -----
TOTAL $1,568,313,775 6.71%
INTEREST RATE HEDGING INSTRUMENTS
EXPIRATION FIXED RATE IN FLOATING RATE IN
NOMINAL AMOUNT INTEREST RATE LIMIT DATE NOMINAL AMOUNT AGREEMENT AGREEMENT EXPIRATION DATE
----------------------------------------------- ------------------------------------------------------------------
CAP None SWAP None
MORTGAGE/CONSTRUCTION MATURITY SCHEDULE (1)
CUMULATIVE %
OF DEBT
YEAR MORTGAGE BALANCE AT MATURITY % OF DEBT EXPIRING EXPIRING
----------------------------------------------------------------------------------
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 44,216,965 3.7% 82.6%
2012 89,480,751 7.5% 90.1%
2013 118,277,121 9.9% 100.0%
Thereafter - 0.0% 100.0%
------------------------------------------------------------
$ 1,192,925,422 100.0%
(1) The average period to mortgage maturity is 5.08 years.
AVERAGE DEBT BALANCE
MORTGAGE DEBT (1)
& CONSTRUCTION LINE OF CREDIT &
LOANS BANK LOANS REMIC TOTAL
----------------------------------------------------------------
BEGINNING BALANCE 12/31/03 $907,548,070 $170,000,000 $488,714,468 $1,566,262,629
Working Capital 3/15/04 12,000,000 12,000,000
Debt Amortization (2) 3/31/04 (5,488,370) (4,460,393) (9,948,763)
----------------------------------------------------------------
ENDING BALANCE 3/31/04 $902,059,700 $182,000,000 $484,254,075 $1,568,313,775
WEIGHTED AVERAGE BALANCE $907,548,070 $172,109,890 $488,714,468 $1,568,372,428
(1) Includes mark to market of debt.
(2) Includes the amortization of debt premium.
PENNSYLVANIA REIT [PREIT LOGO] PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) NYSE(R)
DEBT RATIOS(1)
-----------------------------------
3/31/2004 3/31/2003
--------- ---------
- ------------------------------------------------------------------------------------------------------------------------------------
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 $ 1,591,458,512 $ 653,944,255
Gross Asset Value $ 3,069,112,852 $ 1,196,682,211
RATIO 51.85% 54.65%
- ------------------------------------------------------------------------------------------------------------------------------------
EBITDA TO INTEREST EXPENSE
Ratio of EBITDA(4) to Interest Expense(5) greater than or equal to 1.90 to 1.00.
EBITDA $ 156,686,342 $ 97,621,509
Interest Expense $ 72,664,165 $ 45,373,985
RATIO 2.16 2.15
- ------------------------------------------------------------------------------------------------------------------------------------
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 $ 155,387,729 $ 95,074,921
Fixed Charges $ 89,109,893 $ 53,018,789
RATIO 1.74 1.79
- ------------------------------------------------------------------------------------------------------------------------------------
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 $ 1,315,690,169
Gross Asset Value $ 3,069,112,852
RATIO 42.87% 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 Property 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.
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) [PREIT LOGO] PEI
LISTED
PORTFOLIO SUMMARY--RETAIL NYSE(R)
(Sorted by State)
- ------------------------------------------------------------------------------------------------------------------------------------
PROPERTY MANAGEMENT
RETAIL PROPERTIES (1) CITY STATE SUBTYPE STATUS PROPERTY STATUS
- ------------------------------------------------------------------------------------------------------------------------------------
Wiregrass Commons Dothan AL Enclosed PREIT New
Mall
Christiana Power Center I Newark DE Power Center PREIT Existing
South Blanding Village Jacksonville FL Strip Center PREIT Existing
Francis Scott Key Mall (2) Frederick MD Enclosed PREIT New
Mall
Valley Mall Hagerstown MD Enclosed PREIT New
Mall
Prince Georges Plaza Hyattsville MD Enclosed PREIT Redevelopment
Mall
Dartmouth Mall Dartmouth MA Enclosed PREIT Existing
Mall
Cherry Hill Mall Cherry Hill NJ Enclosed PREIT New
Mall
Moorestown Mall Moorestown NJ Enclosed PREIT New
Mall
Phillipsburg Mall Phillipsburg NJ Enclosed PREIT New
Mall
Rio Grande Mall Rio Grande NJ Strip Center Third Party Existing
Echelon Mall Voorhees NJ Enclosed PREIT New
Mall
Jacksonville Mall Jacksonville NC Enclosed PREIT New
Mall
Crest Plaza Shopping Center Allentown PA Strip Center PREIT New
Lehigh Valley Mall Allentown PA Enclosed Third Party Existing
Mall
South Mall (2) Allentown PA Enclosed PREIT New
Mall
Whitehall Mall Allentown PA Power Center Third Party Existing
Logan Valley Mall (2) Altoona PA Enclosed PREIT New
Mall
Capital City Mall (2) Camp Hill PA Enclosed PREIT New
Mall
Chambersburg Mall (2) Chambersburg PA Enclosed PREIT New
Mall
Palmer Park Mall Easton PA Enclosed PREIT Existing
Mall
- ------------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- -------------------------------------------------------------------------------------------------------------
YEAR BUILT/
OWNERSHIP LAST
RETAIL PROPERTIES (1) INTEREST DATE ACQUIRED RENOVATED
- -------------------------------------------------------------------------------------------------------------
Wiregrass Commons 100% 2003 1986/1999
Christiana Power Center I 100% 1998 1998
South Blanding Village 100% 1988/1990 1986
Francis Scott Key Mall (2) 89% 2003 1978/1991
Valley Mall 100% 2003 1974/1999
Prince Georges Plaza 100% 1998 1959/1990
Dartmouth Mall 100% 1997 1971/2000
Cherry Hill Mall 73% 2003 1961/1990
Moorestown Mall 100% 2003 1963/2000
Phillipsburg Mall 89% 2003 1989/2003
Rio Grande Mall 60% 1973 1973/1999
Echelon Mall 100% 2003 1970/1998
Jacksonville Mall 100% 2003 1981/1998
Crest Plaza Shopping Center 100% 1964 1959/1991
Lehigh Valley Mall 50% 1973 1977/1996
South Mall (2) 89% 2003 1975/1992
Whitehall Mall 50% 1964 1964/1998
Logan Valley Mall (2) 100% 2003 1960/1997
Capital City Mall (2) 100% 2003 1974/1998
Chambersburg Mall (2) 89% 2003 1982
Palmer Park Mall 100% 1972/2003 1972/1998
- -------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- -------------------------------------------------------------------------------------------------------------------------
YEARS SINCE OWNED GLA OWNED GLA
RETAIL PROPERTIES (1) RENOVATION (ANCHORS) (NON-ANCHORS) TOTAL OWNED GLA
- -------------------------------------------------------------------------------------------------------------------------
Wiregrass Commons 5 - 229,712 229,712
Christiana Power Center I 6 190,814 111,595 302,409
South Blanding Village 18 73,921 32,736 106,657
Francis Scott Key Mall (2) 13 291,620 278,628 570,248
Valley Mall 5 294,348 355,972 650,320
Prince Georges Plaza 14 404,462 348,873 753,335
Dartmouth Mall 4 208,460 315,109 523,569
Cherry Hill Mall 14 - 525,273 525,273
Moorestown Mall 4 408,356 324,690 733,046
Phillipsburg Mall 1 306,159 246,307 552,466
Rio Grande Mall 5 136,066 29,517 165,583
Echelon Mall 6 310,840 433,454 744,294
Jacksonville Mall 6 242,115 232,340 474,455
Crest Plaza Shopping Center 13 45,000 60,559 105,559
Lehigh Valley Mall 8 212,000 471,353 683,353
South Mall (2) 12 188,858 214,877 403,735
Whitehall Mall 6 294,635 239,176 533,811
Logan Valley Mall (2) 7 454,387 327,247 781,634
Capital City Mall (2) 6 204,301 284,359 488,660
Chambersburg Mall (2) 22 241,690 212,918 454,608
Palmer Park Mall 6 314,235 131,937 446,172
- -------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL PROPERTY
RETAIL PROPERTIES (1) SPACE NOT OWNED (NAME/GLA) GLA MAJORS / ANCHORS LEASE EXPIRATION
- ------------------------------------------------------------------------------------------------------------------------------------
Wiregrass Commons Dillard's 403,163 632,875 Dillard's 1/31/37
JC Penney JC Penney 5/30/14
McRaes McRaes 1/31/37
Parisian Parisian 1/31/37
Christiana Power Center I - 302,409 Costco 1/31/19
Dick's Sporting Gds 11/30/13
South Blanding Village - 106,657 Staples 9/30/08
Food Lion 7/31/08
Francis Scott Key Mall (2) Hecht's 139,333 709,581 Hecht's N/A
Sears 7/31/08
JC Penney 5/31/06
Value City 6/30/10
Valley Mall Sears 243,400 893,720 Sears 4/14/44
Hecht's JC Penney 10/3/09
Bon-Ton 1/31/14
Hecht's 10/23/49
Prince Georges Plaza - 753,335 JC Penney 7/31/04
Hecht 10/31/08
Dartmouth Mall Filene's 93,123 616,692 JC Penney 7/31/09
Sears 4/12/06
Filene's N/A
Cherry Hill Mall JC Penney 740,770 1,266,043 JC Penney N/A
Macy's Macy's N/A
Strawbridge's Strawbridge's N/A
Moorestown Mall Lord & Taylor 321,200 1,054,246 Boscov's 10/31/10
Strawbridge's Lord & Taylor N/A
Sears 10/5/22
Strawbridge's N/A
Phillipsburg Mall - 552,466 Bon-Ton 1/31/10
JC Penney 3/31/10
Sears 4/30/09
Kohl's 1/31/25
Rio Grande Mall - 165,583 K-Mart 7/31/18
Staples 10/31/04
Echelon Mall Strawbridge's 396,783 1,141,077 Boscov's N/A
Boscov's Strawbridge's N/A
Jacksonville Mall - 474,455 Belks 8/21/11
JC Penney 8/31/05
Sears 8/4/11
Crest Plaza Shopping Center Target 143,130 248,689 Weis Market 1/31/07
Target N/A
Lehigh Valley Mall JC Penney 371,986 1,055,339 Macy's 7/31/12
Strawbridge's JC Penney N/A
Firestone Strawbridge's N/A
South Mall (2) - 403,735 Bon-Ton 9/30/05
Stein Mart 10/31/06
Steve & Barry's 1/31/11
Whitehall Mall - 533,811 Kohl's 3/9/07 9/18/11
Sears 1/31/10
Bed, Bath & Beyond
Logan Valley Mall (2) - 781,634 JC Penney 6/30/17
Kaufmann's 1/31/05
Sears 10/31/16
Capital City Mall (2) Hecht's 120,000 608,660 JC Penney 11/30/10
Hecht's N/A
Sears 7/31/04
Chambersburg Mall (2) - 454,608 Bon-Ton 7/31/05
JC Penney 3/31/12
Sears 2/9/10
Value City 2/28/07
Palmer Park Mall - 446,172 Bon-Ton 7/25/14
Boscov's 10/31/18
- ------------------------------------------------------------------------------------------------------------------------------------
PAGE 17 A
- ------------------------------------------------------------------------------------------------------------------------------------
PROPERTY MANAGEMENT
RETAIL PROPERTIES (1) CITY STATE SUBTYPE STATUS PROPERTY STATUS
- ------------------------------------------------------------------------------------------------------------------------------------
Exton Square Mall Exton PA Enclosed PREIT New
Mall
Festival at Exton Exton PA Strip Center PREIT Existing
North Hanover Mall (2) Hanover PA Enclosed PREIT New
Mall
Paxton Towne Centre Harrisburg PA Power Center PREIT Existing
Laurel Mall Hazleton PA Enclosed Third Party Existing
Mall
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 PREIT New
Mall
Lycoming Mall (2) Pennsdale PA Enclosed PREIT New
Mall
Northeast Tower Center Philadelphia PA Power Center PREIT Existing
The Gallery at Market East Philadelphia PA Enclosed PREIT New
Mall
Plymouth Meeting Mall Plymouth PA Enclosed PREIT New
Meeting Mall
Metroplex Shopping Center Plymouth Mtg. PA Power Center Third Party Existing
Viewmont Mall (2) Scranton PA Enclosed PREIT New
Mall
Springfield Park I & II Springfield PA Strip Center PREIT Existing
Nittany Mall (2) State College PA Enclosed PREIT New
Mall
Uniontown Mall (2) Uniontown PA Enclosed PREIT New
Mall
Creekview Shopping Center Warrington PA Power Center PREIT Existing
[RESTUBBED TABLE]
- -------------------------- ---------------------------------------------------------------------------------
YEAR BUILT/
OWNERSHIP LAST YEARS SINCE
RETAIL PROPERTIES (1) INTEREST DATE ACQUIRED RENOVATED RENOVATION
- -------------------------- ---------------------------------------------------------------------------------
Exton Square Mall 100% 2003 1973/2000 4
Festival at Exton 100% 1998 1991 13
North Hanover Mall (2) 89% 2003 1967/1999 5
Paxton Towne Centre 100% 1999 2001 3
Laurel Mall 40% 1988 1973/1995 9
Red Rose Commons 50% 1998 1998 6
The Court at Oxford Valley 50% 1997 1996 8
Beaver Valley Mall 100% 2002 1970/1991 13
Lycoming Mall (2) 89% 2003 1978/1990 14
Northeast Tower Center 100% 1998/1999 1997/1998 6
The Gallery at Market East 100% 2003 1977/1983 21
Plymouth Meeting Mall 100% 2003 1966/1999 5
Metroplex Shopping Center 50% 1999 2001 3
Viewmont Mall (2) 89% 2003 1968/1996 8
Springfield Park I & II 50% 1997/1998 1997/1998 6
Nittany Mall (2) 89% 2003 1968/1990 14
Uniontown Mall (2) 89% 2003 1972/1990 14
Creekview Shopping Center 100% 1999 2001 3
[RESTUBBED TABLE]
- ------------------------------ ------------------------------------------------------------
OWNED GLA OWNED GLA
RETAIL PROPERTIES (1) (ANCHORS) (NON-ANCHORS) TOTAL OWNED GLA
- ------------------------------ ------------------------------------------------------------
Exton Square Mall 440,301 370,057 810,358
Festival at Exton 60,425 84,578 145,003
North Hanover Mall (2) 288,177 161,009 449,186
Paxton Towne Centre 151,627 292,856 444,483
Laurel Mall 350,323 208,479 558,802
Red Rose Commons - 263,452 263,452
The Court at Oxford Valley 176,831 280,032 456,863
Beaver Valley Mall 511,267 446,709 957,976
Lycoming Mall (2) 321,441 340,090 661,531
Northeast Tower Center 256,021 182,521 438,542
The Gallery at Market East - 193,278 193,278
Plymouth Meeting Mall 345,000 413,585 758,585
Metroplex Shopping Center 67,185 410,276 477,461
Viewmont Mall (2) 386,262 237,404 623,666
Springfield Park I & II 83,539 43,292 126,831
Nittany Mall (2) 221,462 215,617 437,079
Uniontown Mall (2) 421,378 277,042 698,420
Creekview Shopping Center - 136,086 136,086
[RESTUBBED TABLE]
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL PROPERTY
RETAIL PROPERTIES (1) SPACE NOT OWNED (NAME/GLA) GLA MAJORS / ANCHORS LEASE EXPIRATION
- ------------------------------------------------------------------------------------------------------------------------------------
Exton Square Mall Strawbridge's 277,468 1,087,826 Boscov's 10/31/19
K-Mart JC Penney 5/31/20
K-Mart N/A
Sears 1/31/20
Strawbridge's N/A
Festival at Exton - 145,003 Sears Hardware 8/18/04
Clemen's 10/31/11
North Hanover Mall (2) - 449,186 Bon-Ton 1/31/06
JC Penney 1/31/06
Black Rose Antiques N/A
Sears 11/30/09
Paxton Towne Centre Target 273,058 717,541 Target N/A
Costco Kohl's 1/25/21
Weis 11/30/20
Costco N/A
Laurel Mall - 558,802 Boscov's 4/30/08
K-Mart JC 8/31/19
Penney 10/31/09
Red Rose Commons Weis Markets 199,590 463,042 Weis Markets N/A
Home Depot Home Depot N/A
The Court at Oxford Valley Home Depot 247,623 704,486 Best Buy 12/31/11
BJ's Dick's Sporting Gds 4/15/11
Linens N Things 2/14/17
Beaver Valley Mall Kaufmann's 204,770 1,162,746 Boscov's 9/30/18
JC Penney 9/30/17
Sears 8/15/06
Kaufman's N/A
Lycoming Mall (2) Kaufmann's 120,000 781,531 Bon-Ton 7/31/06
JC Penney 10/31/05
Kauffmann's N/A
Sears 7/31/08
Value City 7/31/08
Northeast Tower Center Raymour & 38,678 477,220 Home Depot 9/30/05
Flanigan Dick's Sporting Gds 7/31/08
Petsmart 2/28/12
Wal-Mart 1/31/14
The Gallery at Market East - 193,278 K-Mart N/A
Strawbridge's N/A
Plymouth Meeting Mall Strawbridge's 214,635 973,220 AMC Theater 12/31/18
Boscov's 10/31/16
Strawbridge's N/A
Metroplex Shopping Center Target 300,729 778,190 Target N/A
Lowe's Lowe's N/A
Giant 2/28/21
Viewmont Mall (2) Kaufmann's 120,000 743,666 JC Penney 10/31/05
Sears 12/31/05
Kauffmann's N/A
Springfield Park I & II Target 145,669 272,500 Target N/A
Bed, Bath & Beyond 1/31/09
LA Fitness 3/31/17
Nittany Mall (2) Kaufmann's 95,000 532,079 Bon-Ton 1/31/08
JC Penney 7/31/05
Kaufmann's N/A
Sears 8/31/05
Uniontown Mall (2) - 698,420 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 288,916 425,002 Target N/A
Lowe's Lowe's N/A
Genuardi's 12/31/21
PAGE 17 B
- ------------------------------------------------------------------------------------------------------------------------------------
PROPERTY MANAGEMENT
RETAIL PROPERTIES (1) CITY STATE SUBTYPE STATUS PROPERTY STATUS
- ------------------------------------------------------------------------------------------------------------------------------------
Washington Crown Center (2) Washington PA Enclosed PREIT New
Mall
Wyoming Valley Mall (2) Wilkes-Barre PA Enclosed PREIT New
Mall
Willow Grove Park Willow Grove PA Enclosed PREIT New
Mall
Magnolia Mall Florence SC Enclosed PREIT Existing
Mall
The Commons at Magnolia Florence SC Strip Center PREIT New
New River Valley Mall Christiansburg VA Enclosed PREIT New
Mall
Patrick Henry Mall Newport News VA Enclosed PREIT New
Mall
Crossroads Mall Beckley WV Enclosed PREIT New
Mall
Valley View Mall La Crosse WI Enclosed PREIT New
Mall
- ------------------------------------------------------------------------------------------------------------------------------------
PROPERTIES HELD FOR SALE
Mount Berry Square Rome GA Enclosed PREIT New
Mall
Schuylkill Mall (2) Frackville PA Enclosed PREIT New
Mall
Shenango Valley Mall (2) Hermitage PA Enclosed PREIT New
Mall
West Manchester Mall (2) York PA Enclosed PREIT New
Mall
Bradley Square Mall Cleveland TN Enclosed PREIT New
Mall
Martinsburg Mall Martinsburg WV Enclosed PREIT New
Mall
TOTAL ASSETS HELD FOR SALE
TOTAL CONTINUING PROPERTIES
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL WHOLLY OWNED
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL JOINT VENTURE
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR WHOLLY OWNED AND JOINT VENTURE
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE FOR WHOLLY OWNED AND JOINT VENTURE
- ------------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- ------------------------------------------ ----------------------------------------------------------------------------------
YEAR BUILT/
OWNERSHIP LAST YEARS SINCE
RETAIL PROPERTIES (1) INTEREST DATE ACQUIRED RENOVATED RENOVATION
- ------------------------------------------ ----------------------------------------------------------------------------------
Washington Crown Center (2) 89% 2003 1969/1999 5
Wyoming Valley Mall (2) 100% 2003 1974/1995 9
Willow Grove Park 100% 2000/2003 1982/2001 3
Magnolia Mall 100% 1997 1979/1992 12
The Commons at Magnolia 100% 1999 1991/2002 2
New River Valley Mall 89% 2003 1988 16
Patrick Henry Mall 89% 2003 1988/1999 5
Crossroads Mall 100% 2003 1981 23
Valley View Mall 100% 2003 1980/2001 3
- ------------------------------------------------------------------------------------------------------------------------------
PROPERTIES HELD FOR SALE
Mount Berry Square 100% 2003 1991 13
Schuylkill Mall (2) 100% 2003 1980/1991 13
Shenango Valley Mall (2) 100% 2003 1967/1997 7
West Manchester Mall (2) 89% 2003 1981/1995 9
Bradley Square Mall 100% 2003 1991/2000 4
Martinsburg Mall 89% 2003 1991/1998 6
TOTAL ASSETS HELD FOR SALE
TOTAL CONTINUING PROPERTIES
- ------------------------------------------ ----------------------------------------------------------------------------------
TOTAL WHOLLY OWNED
- ------------------------------------------ ----------------------------------------------------------------------------------
TOTAL JOINT VENTURE
- ------------------------------------------ ----------------------------------------------------------------------------------
TOTAL FOR WHOLLY OWNED AND JOINT VENTURE
- ------------------------------------------ ----------------------------------------------------------------------------------
AVERAGE FOR WHOLLY OWNED AND JOINT VENTURE 8.63
- ------------------------------------------ ----------------------------------------------------------------------------------
[RESTUBBED TABLE]
- --------------------------- -------------------------------------------------------------
OWNED GLA OWNED GLA
RETAIL PROPERTIES (1) (ANCHORS) (NON-ANCHORS) TOTAL OWNED GLA
- --------------------------- -------------------------------------------------------------
Washington Crown Center (2) 245,401 288,171 533,572
Wyoming Valley Mall (2) 592,110 318,848 910,958
Willow Grove Park 225,000 339,054 564,054
Magnolia Mall 343,118 219,578 562,696
The Commons at Magnolia 51,574 52,870 104,444
New River Valley Mall 240,306 187,849 428,155
Patrick Henry Mall 267,175 233,200 500,375
Crossroads Mall 256,248 193,835 450,083
Valley View Mall 96,357 238,060 334,417
- ---------------------------------------------------------------------------------------------------------
PROPERTIES HELD FOR SALE
Mount Berry Square 269,257 208,801 478,058
Schuylkill Mall (2) 346,990 318,872 665,862
Shenango Valley Mall (2) 400,099 108,516 508,615
West Manchester Mall (2) 285,515 296,641 582,156
Bradley Square Mall 240,421 144,335 384,756
Martinsburg Mall 387,303 165,809 553,112
-------------------------------------------------------------
TOTAL ASSETS HELD FOR SALE 1,929,585 1,242,974 3,172,559
TOTAL CONTINUING PROPERTIES 11,220,795 12,034,460 23,255,255
- --------------------------- -------------------------------------------------------------
TOTAL WHOLLY OWNED 11,829,801 11,331,857 23,161,658
- --------------------------- -------------------------------------------------------------
TOTAL JOINT VENTURE 1,320,579 1,945,577 3,266,156
- --------------------------- -------------------------------------------------------------
TOTAL FOR WHOLLY OWNED AND 13,150,380 13,277,434 26,427,814
- --------------------------- -------------------------------------------------------------
AVERAGE FOR WHOLLY OWNED AN
- --------------------------- -------------------------------------------------------------
[RESTUBBED TABLE]
- ------------------------------------------ ------------------------------------------------------
TOTAL PROPERTY
RETAIL PROPERTIES (1) SPACE NOT OWNED (NAME/GLA) GLA
- ------------------------------------------ ------------------------------------------------------
Washington Crown Center (2) Kaufmann's 140,095 673,667
Wyoming Valley Mall (2) - 910,958
Willow Grove Park Sears 641,861 1,205,915
Bloomingdale's
Strawbridge
Magnolia Mall - 562,696
The Commons at Magnolia Target 126,200 230,644
New River Valley Mall - 428,155
Patrick Henry Mall Hecht's 140,000 640,375
Crossroads Mall - 450,083
Valley View Mall Herberges 254,596 589,013
Marshall Fields
Sears
- --------------------------------------------------------------------------------------------------
PROPERTIES HELD FOR SALE
Mount Berry Square - 478,058
Schuylkill Mall (2) Bon-Ton 60,916 726,778
Shenango Valley Mall (2) - 508,615
West Manchester Mall (2) Hecht's 119,768 701,924
Bradley Square Mall - 384,756
Martinsburg Mall - 553,112
------------------------------------------------------
TOTAL ASSETS HELD FOR SALE - 180,684 3,353,243
TOTAL CONTINUING PROPERTIES - 6,801,776 30,057,031
- ------------------------------------------ ------------------------------------------------------
TOTAL WHOLLY OWNED 5,716,863 28,878,521
- ------------------------------------------ ------------------------------------------------------
TOTAL JOINT VENTURE 1,265,597 4,531,753
- ------------------------------------------ ------------------------------------------------------
TOTAL FOR WHOLLY OWNED AND JOINT VENTURE 6,982,460 33,410,274
- ------------------------------------------ ------------------------------------------------------
AVERAGE FOR WHOLLY OWNED AND JOINT VENTURE
- ------------------------------------------ ------------------------------------------------------
[RESTUBBED TABLE]
- ----------------------------------------------------------------------------------------
RETAIL PROPERTIES (1) MAJORS / ANCHORS LEASE EXPIRATION
- ----------------------------------------------------------------------------------------
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
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
New River Valley 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 1/31/99
Crossroads Mall Sears 11/30/08
JC Penney 3/31/06
Belk 12/31/06
Valley View Mall JC Penney 7/31/05
Herberges N/A
Marshall Fields N/A
Sears N/A
PROPERTIES HELD FOR SALE
Mount Berry Square Belks 2/12/11
JC Penney 2/28/06
Profitts 1/31/12
Sears 2/8/11
Schuylkill Mall (2) K-Mart 10/31/05
Sears 10/31/05
Bon-Ton N/A
Black Diamond Antiques 12/31/04
Shenango Valley Mall (2) Kaufmann's 9/30/06
JC Penney 1/31/09
Sears 11/30/05
West Manchester Mall (2) Bon-Ton 2/28/07
Hecht's N/A
Value City 10/31/11
Wal-Mart 10/31/14
Bradley Square Mall Sears 10/23/05
Proffitt's 1/31/06
K-Mart 1/31/12
JC Penney 2/28/06
Martinsburg Mall Bon-Ton 1/31/12
JC Penney 8/31/11
Sears 9/8/11
Wal-Mart 6/28/11
TOTAL ASSETS HELD FOR SALE
TOTAL CONTINUING PROPERTIES
- ----------------------------------------------------------------------------------------
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 17 46
- -------------------------------------------------------------------------------------------
POWER CENTER THIRD PARTY MANAGED NEW JOINT VENTURE
8 7 36 8
- -------------------------------------------------------------------------------------------
STRIP CENTER REDEVELOPMENT
6 1
- -------------------------------------------------------------------------------------------
54 54 54 54
- -------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
SUMMARY OF TOTAL OWNED GLA FOR WHOLLY OWNED AND
JOINT VENTURE PROPERTIES
- ------------------------------------------------------------------------------------------------------------------------------------
ENCLOSED MALL PREIT MANAGED EXISTING WHOLLY OWNED TOP 5 ASSETS AS A PERCENTAGE OF
22,620,630 23,288,489 6,371,773 23,161,658 1.7%
- ------------------------------------------------------------------------------------------------------------------------------------
POWER CENTER THIRD PARTY MANAGED NEW JOINT VENTURE TOP ASSET AS A PERCENTAGE OF TOTAL
3,053,107 3,139,325 19,302,706 3,266,156 3.7%
- ------------------------------------------------------------------------------------------------------------------------------------
STRIP CENTER REDEVELOPMENT
754,077 753,335
- ------------------------------------------------------------------------------------------------
26,427,814 26,427,814 26,427,814 26,427,814
- ------------------------------------------------------------------------------------------------------------------------------------
(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 17 C
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004)
QUARTERLY ACTIVITY
PROPERTY ACQUISITIONS/DISPOSITIONS SUMMARY
- ------------------------------------------------------------------------------------------------------------------------------------
SQUARE FEET/ OWNERSHIP DATE ACQUIRED,
NAME OF PROJECT, LOCATION UNITS/ACRES INTEREST COMPLETED, OR SOLD
- ------------------------------------------------------------------------------------------------------------------------------------
ACQUISITIONS:
- -------------
Parcel of Land. Florence, South Carolina ACRES 25 100%
---------
TOTAL ACQUISITIONS ACRES 25
PENDING ACQUISITIONS:
- ---------------------
The Gallery at Market East II SQUARE FEET 328,000 100% 2Q04
New Garden, New Garden, PA 404,614 100% 2Q05
---------
TOTAL PENDING ACQUISITIONS SQUARE FEET 732,614
DIVESTITURES
- ------------
None
TOTAL DIVESTITURES
PENDING DIVESTITURES:
- ---------------------
Bradley Square Mall, Cleveland, TN, Martinsburg Mall,
Martinsburg, WV, Mount Berry Square Mall, Rome, GA, SQUARE FEET 3,353,243
Schuylkill Mall, Frackville, PA, Shenango Valley
Mall, Hermitage, PA and West Manchester Mall,
York, PA.
TOTAL PENDING DIVESTITURES SQUARE FEET 3,353,243
- ------------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL COST PREIT'S COST EXPECTED NOI
NAME OF PROJECT, LOCATION OR PRICE OR PRICE CAP (1) MAJOR TENANTS
- ------------------------------------------------------------------------------------------------------------------------------------
ACQUISITIONS:
- -------------
Parcel of Land. Florence, South Carolina $ 3,800,000 $ 3,800,000
----------- -----------
TOTAL ACQUISITIONS $ 3,800,000 $ 3,800,000
PENDING ACQUISITIONS:
- ---------------------
The Gallery at Market East II $32,000,000 $ 32,000,000 9.5% Burlington Coat Factory
New Garden, New Garden, PA 42,580,062 27,830,062 8.5% Home Depot
----------- ------------
TOTAL PENDING ACQUISITIONS $74,580,062 $ 59,830,062
DIVESTITURES
- ------------
None
TOTAL DIVESTITURES
PENDING DIVESTITURES:
- ---------------------
Bradley Square Mall, Cleveland, TN, Martinsburg Mall,
Martinsburg, WV, Mount Berry Square Mall, Rome, GA,
Schuylkill Mall, Frackville, PA, Shenango Valley N/A N/A
Mall, Hermitage, PA and West Manchester Mall,
York, PA.
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 18
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004)
DEVELOPMENT ACTIVITY
[PREIT LOGO] PEI
LISTED
NYSE(R)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL
PROJECTED TOTAL
PROPERTY GLA PROJECTED PREIT'S SHARE
NAME OF PROJECT LOCATION PROPERTY TYPE (sq ft)(1) COST(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
- ------------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- ------------------------------------------------------------------------------------------------------------------------------------
PREIT'S SHARE EXPECTED CONST DATE OF EXPECTED STABILIZED
OF INVESTMENT STABILIZED START INITIAL DATE OF OPERATIONS
NAME OF PROJECT TO DATE NOI CAP DATE OCCUPANCY COMPLETION DATE
- ------------------------------------------------------------------------------------------------------------------------------------
Christiana Power Center (Phase II) (2) $ 4,330,180 10.0% N/A N/A N/A N/A
New Garden 1,353,165 8.5% 2Q05 1Q06 1Q06 2Q06
Pavilion at Market East (3) 1,506,178 N/A N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DEVELOPMENT ACTIVITY $ 7,189,523 9.3%
- ------------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- ------------------------------------------------------------------------------------------------------------------------------------
PREIT'S
NAME OF PROJECT STATUS % COMP. % LEASED % OCCUPIED ANCHORS SHARE
- ------------------------------------------------------------------------------------------------------------------------------------
Christiana Power Center (Phase II) (2) Development 12% 0% 0% 100%
New Garden Development 5% 32% 0% Home Depot, Supermarket 100%
Pavilion at Market East (3) Construction N/A N/A N/A TBD 50%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DEVELOPMENT ACTIVITY
- ------------------------------------------------------------------------------------------------------------------------------------
(1) GLA & total project cost include tenants that purchased their respective
land; therefore, the % leased & occupied will also include these tenants.
(2) On April 28, 2004, the Supreme Court of the State of Delaware affirmed a
Court of Chancery determination that the Delaware Department of
Transportation violated the terms of a 1992 Settlement Agreement pertaining
to the development of the Company's Christiana Phase II project. The
Company owns a 50% interest in this planned approximately 356,000 square
foot power center project located in Newark, Delaware adjacent to the
Company's Christiana Power Center I. Under the terms of the Supreme Court
decision the matter has been remitted to the Superior Court of the State of
Delaware for a determination of the damages to which the Company is
entitled. The Company is not in a position to predict the outcome of this
proceeding.
(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 (1)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL
PROJECTED TOTAL
PROPERTY GLA PROJECTED PREIT'S SHARE
NAME OF PROJECT LOCATION PROPERTY TYPE (sq ft)(2) COST(2) OF COST
- ------------------------------------------------------------------------------------------------------------------------------------
Prince Georges Plaza (3)(4) Hyattsville, MD Enclosed Mall 893,274 24,146,000 17,200,000
----------------------------------------------------------------------------------------
TOTAL REDEVELOPMENT ACTIVITY $ 893,274 24,146,000 $17,200,000
- ------------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- ------------------------------------------------------------------------------------------------------------------------------------
PREIT'S SHARE EXPECTED CONST DATE OF EXPECTED STABILIZED
OF INVESTMENT STABILIZED START INITIAL DATE OF OPERATIONS
NAME OF PROJECT TO DATE NOI CAP DATE OCCUPANCY COMPLETION DATE
- ------------------------------------------------------------------------------------------------------------------------------------
Prince Georges Plaza (3)(4) 6,055,362 12.0% 2Q03 4Q04 4Q04 4Q05
----------------------------------------------------------------------------------------
TOTAL REDEVELOPMENT ACTIVITY $6,055,362 12.0%
- ------------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
- ------------------------------------------------------------------------------------------------------------------------------------
PREIT'S
NAME OF PROJECT STATUS % COMP. % LEASED % OCCUPIED ANCHORS SHARE
- ------------------------------------------------------------------------------------------------------------------------------------
Prince Georges Plaza (3)(4) Construction 40% 65% 0% Target 100%
----------------------------------------------------------------------------------------
TOTAL REDEVELOPMENT ACTIVITY
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Magnolia Mall's food court and Best Buy store were completed in the 4th
quarter 2003. The balance of the mall renovation has been put on hold.
PREIT originally estimated its share of the costs at $10.9 million. The
Company spent $7.5 million on completed work.
(2) GLA & total project cost include tenants that purchased their respective
land; therefore, the % leased & occupied will also include these tenants.
(3) Income producing property, but still under development.
(4) Prince Georges Plaza's % leased is based on the 210,010 sq foot
redevelopment area which was vacant at 3/31/04.
PAGE 19
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004)
TOP TWENTY TENANTS (BY PREIT'S SHARE OF ANNUALIZED BASE RENT)
[PREIT LOGO] PEI
LISTED
NYSE(R)
NUMBER OF STORES GLA OF STORES
PERCENTAGE RENT PERCENTAGE RENT
OR COMMON AREA OR COMMON AREA
FIXED COSTS IN LIEU OF COSTS IN LIEU OF
TENANT RENT FIXED RENT(1) TOTAL FIXED RENT FIXED RENT(1) TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
Gap, Inc./Old Navy 55 3 58 645,000 35,012 680,012
The Limited Stores, Inc. 80 20 100 475,231 65,557 540,788
JC Penney 33 1 34 2,789,613 104,107 2,893,720
Sears 33 33 3,432,057 3,432,057
Footlocker, Inc. 64 3 67 347,702 7,487 355,189
Zales 89 89 70,214 70,214
Hallmark Cards, Inc. 54 4 58 192,017 15,694 207,711
Trans World Entertainment 36 36 165,889 165,889
Sterling Jewelers, Inc. (Kay Jewelers) 40 40 55,625 55,625
Borders 34 2 36 187,341 6,576 193,917
Bon-Ton 18 18 1,284,678 1,284,678
American Eagle Outfitters 30 2 32 144,784 11,229 156,013
Shoe Show, Inc. 38 38 185,536 185,536
Regis Corp. 83 83 96,587 96,587
Boscov's 7 7 1,308,706 1,308,706
Kay Bee Toys (4) 32 5 37 137,854 17,233 155,087
Sun Capital Partners 26 2 28 85,401 7,810 93,211
Payless Shoe Source 40 5 45 132,793 15,782 148,575
Charming Shoppes, Inc. 27 2 29 190,170 11,993 202,163
Luxottica Retail Group 38 38 79,207 79,207
- ------------------------------------------------------------------------------------------------------------------------------------
Total Top 20 Tenants 857 49 906 12,006,405 298,480 12,304,885
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Total Retail Leased 3,614 24,307,941
- ------------------------------------------------------------------------------------------------------------------------------------
[RESTUBBED TABLE]
PREIT'S SHARE PERCENT OF
ANNUALIZED OF ANNUALIZED PREIT'S TOTAL
TENANT BASE RENT BASE RENT(2) RETAIL BASE RENT
- -----------------------------------------------------------------------------------------------------------------------------------
Gap, Inc./Old Navy $12,761,115 $11,941,806 4.31%
The Limited Stores, Inc. 10,669,335 10,186,453 3.68%
JC Penney 7,469,448 7,339,465 2.65%
Sears 6,599,582 6,443,850 2.33%
Footlocker, Inc. 6,042,064 5,716,880 2.06%
Zales 5,084,191 4,873,416 1.76%
Hallmark Cards, Inc. 4,291,442 4,215,109 1.52%
Trans World Entertainment 3,828,072 3,649,836 1.32%
Sterling Jewelers, Inc. (Kay Jewelers) 3,648,089 3,460,589 1.25%
Borders 3,669,364 3,450,149 1.25%
Bon-Ton 3,394,099 3,394,099 1.22%
American Eagle Outfitters 3,521,119 3,387,541 1.22%
Shoe Show, Inc. 3,035,863 2,961,825 1.07%
Regis Corp. 2,776,967 2,720,383 0.98%
Boscov's 3,137,572 2,695,972 0.97%
Kay Bee Toys (4) 2,823,015 2,682,546 0.97%
Sun Capital Partners 2,738,254 2,654,674 0.96%
Payless Shoe Source 2,707,634 2,564,697 0.93%
Charming Shoppes, Inc. 2,613,321 2,474,283 0.89%
Luxottica Retail Group 2,574,016 2,395,088 0.86%
- -----------------------------------------------------------------------------------------------------------------
Total Top 20 Tenants 93,384,562 89,208,661 32.19%
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
Total Retail Leased $287,933,374 $277,093,044(3) 100.00%
- -----------------------------------------------------------------------------------------------------------------
(1) Lease(s) in which tenant pays percentage rent or common area costs in lieu
of fixed rent are not included in annualized base rent.
(2) Includes PREIT's proportionate share of tenant rents from joint venture
properties based on PREIT's ownership percentage in the respective joint
venture.
(3) PREIT's share of annualized base rent is derived by annualizing 1st quarter
base rent. Straight line rent is not included in the base rent figures.
(4) Kay Bee Toys filed for bankruptcy protection (Chapter 11) in January 2004
and closed four stores at PREIT's malls during the first quarter of 2004.
PAGE 20
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004)
PEI
[PREIT LOGO] LISTED
NYSE(R)
RETAIL LEASE EXPIRATION SCHEDULE - ANCHORS(1)
YEAR LEASES GROSS LEASABLE AREA ANNUALIZED BASE RENT
------------------ ---------------- ----------------------------- -------------------------------------------- ------------
PERCENT OF AVERAGE
NUMBER OF PREIT's SHARE OF TOTAL EXPIRING
LEASE EXPIRATION LEASES PERCENT OF RENT IN RENT IN EXPIRING (PREIT's BASE RENT
YEAR EXPIRING EXPIRING GLA TOTAL EXPIRING YEAR YEAR (3) SHARE) PSF
------------------ ---------------- ---------------------------- --------------------------------------------- ------------
Prior (2) $ -
2004 6 467,326 3.71% 1,084,500 1,084,500 2.71% 2.32
2005 22 1,689,102 13.42% 5,779,300 5,779,300 14.44% 3.42
2006 22 1,368,381 10.87% 3,643,959 3,643,959 9.11% 2.66
2007 10 894,155 7.10% 2,207,404 2,187,604 5.47% 2.47
2008 15 1,020,195 8.11% 2,606,256 2,606,256 6.51% 2.55
2009 14 1,079,333 8.58% 4,402,088 2,665,448 6.66% 4.08
2010 8 792,772 6.30% 2,471,713 2,471,713 6.18% 3.12
2011 13 1,169,231 9.29% 6,081,464 3,835,834 9.59% 5.20
2012 6 520,707 4.14% 1,295,975 1,295,975 3.24% 2.49
2013 5 304,486 2.42% 2,286,713 2,286,713 5.71% 7.51
2014 6 534,927 4.25% 2,458,228 2,458,228 6.14% 4.60
Thereafter 24 2,745,689 21.81% 13,504,422 9,698,896 24.24% 4.92
- -------------------- ------------- --------------------------- -------------------------------------------- ---------
TOTALS: 151 12,586,304 100% $47,822,022 $40,014,426 100% $3.80
- -------------------- -------------------------------------------------- -------------------------------------------- ---------
(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.
PENNSYLVANIA REIT [PREIT LOGO] PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) LISTED
NYSE(R)
RETAIL LEASE EXPIRATION SCHEDULE -NON-ANCHORS(1)
- ------------------ ---------------- ------------------------- ------------------------------------------------ ---------
YEAR LEASES GROSS LEASABLE AREA ANNUALIZED BASE RENT
- ------------------ ---------------- ------------------------- ------------------------------------------------ ---------
PERCENT OF AVERAGE
PREIT'S SHARE OF TOTAL EXPIRING
LEASE EXPIRATION NUMBER OF LEASES PERCENT OF RENT IN EXPIRING RENT IN EXPIRING (PREIT'S BASE RENT
YEAR EXPIRING EXPIRING GLA TOTAL YEAR YEAR(3) SHARE) PSF
- ------------------ ---------------- ------------ ---------- ---------------- ---------------- ---------- ---------
Prior (2) 137 346,947 2.96% $ 7,033,300 $ 6,671,834 2.87% $ 20.27
2004 304 640,556 5.46% 13,494,608 11,895,918 5.12% 21.07
2005 454 1,156,873 9.87% 25,748,816 23,872,395 10.27% 22.26
2006 431 1,207,149 10.30% 28,063,965 25,139,028 10.82% 23.25
2007 400 1,138,489 9.71% 24,963,527 22,665,725 9.75% 21.93
2008 361 1,153,540 9.84% 26,606,204 24,748,188 10.65% 23.06
2009 316 987,827 8.43% 23,043,131 21,750,739 9.36% 23.33
2010 334 1,126,731 9.61% 26,651,357 24,870,485 10.70% 23.65
2011 238 1,080,685 9.22% 26,337,160 20,204,570 8.69% 24.37
2012 194 835,535 7.13% 21,054,442 17,579,960 7.56% 25.20
2013 182 589,686 5.03% 15,197,896 13,471,090 5.80% 25.77
2014 64 405,146 3.46% 9,578,535 6,552,181 2.82% 23.64
Thereafter 48 1,052,473 8.98% 19,674,811 12,990,124 5.59% 18.69
- ------------------ ---------------- ------------ ---------- ---------------- ---------------- ---------- ---------
TOTALS: 3,463 11,721,637 100% $267,447,752 $232,412,237 100% $ 22.82
- ------------------ ---------------- ------------ ---------- ---------------- ---------------- ---------- ---------
(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.
PENNSYLVANIA REIT [PREIT LOGO] PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) NYSE(R)
LEASING ACTIVITY SUMMARY
RETAIL
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL
AVERAGE AVERAGE ANNUALIZED ANNUALIZED ANNUALIZED
PREVIOUS NEW INCREASE/ TENANT LEASING COSTS OF
BASE RENT BASE RENT DECREASE IN IMPROVEMENTS COMMISSIONS LEASING
NEW LEASE NUMBER GLA PSF PSF BASE RENT PSF PSF(1) PSF(1)(2) PSF(1)(2)
- --------- ------ --- --------- --------- ------------- ------------ ----------- ----------
PREVIOUSLY LEASED SPACE:
1st Quarter 13 32,324 $ 18.76 $ 24.84 $ 6.08 $ 1.76 $ - $ 1.76
2nd Quarter - - -
3rd Quarter - - -
4th Quarter - - -
------------------------------------------------------- ------ ------ ------
TOTAL OR AVERAGE 13 32,324 $ 18.76 $ 24.84 $ 6.08 $ 1.76 $ - $ 1.76
======================================================= ====== ====== ======
PREVIOUSLY VACANT SPACE:
1st Quarter 12 26,926 $ - $ 23.40 $ 23.40 $.1.08 $ - $ 1.08
2nd Quarter - - -
3rd Quarter - -
4th Quarter - - - -
------------------------------------------------------- ------ ------ ------
TOTAL OR AVERAGE 12 26,926 - $ 23.40 $ 23.40 $ 1.08 $ - $ 1.08
======================================================= ====== ====== ======
TOTAL
AVERAGE AVERAGE ANNUALIZED ANNUALIZED ANNUALIZED
PREVIOUS NEW INCREASE/ TENANT LEASING COSTS OF
BASE RENT BASE RENT DECREASE IN IMPROVEMENTS COMMISSIONS LEASING
RENEWAL(3) NUMBER GLA PSF PSF BASE RENT PSF PSF(1) PSF(1)(2) PSF(1)(2)
- --------- ------ --- --------- --------- ------------- ------------ ----------- ----------
1st Quarter (4) 60 353,520 $ 12.09 $ 13.40 $ 1.31 $ - $ - $ -
2nd Quarter - -
3rd Quarter - -
4th Quarter - - - -
------------------------------------------------------- ------ ------ ------
TOTAL OR AVERAGE 60 353,520 $ 12.09 $ 13.40 $ 1.31 $ - $ - $ -
======================================================= ====== ====== ======
(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.
(4) Includes a lease to JC Penney of 176,834 square feet for a base rent of
$1.20 per square foot at Shenango Valley Mall. The other 59 renewal leases with
176,686 had an average previous base rent psf of $22.99 and an average new base
rent psf of $25.61 representing an increase of $2.62 in base rent psf.
PAGE 23
PENNSYLVANIA REIT [PREIT LOGO] PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) NYSE(R)
CAPITAL EXPENDITURES
Q1 04
(3 months ended March 31, 2004)
---------------------------------------------------
RETAIL WHOLLY OWNED JOINT VENTURES TOTAL
- ----------------------------------------------- ---------------------------------------------------
New development projects $ 421,003 $ - $ 421,003
Redevelopment projects with incremental GLA
and/or Anchor Replacement 4,976,143 - 4,976,143
Renovation with no incremental GLA 17,470 - 17,470
Tenant allowances 195,958 - 195,958
Operational capital expenditures at properties:
CAM expenditures 363,576 - 363,576
Non-CAM expenditures 273,677 - 273,677
----------- ------ -----------
TOTAL $ 6,247,827 $ - $ 6,247,827
===================================================
External and internal leasing commissions for this period were $23,000.
PAGE 24
PENNSYLVANIA REIT [PREIT LOGO] PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) NYSE(R)
ENCLOSED MALLS
(Includes Non-Anchor Owned Space) Q1 04
-----------------------------------------------------------------------
IN-LINE ONLY
TOTAL TOTAL (NON- IN-LINE (NON-
W/ANCHOR W/ANCHOR % ANCHOR) % ANCHOR) %
% LEASED AVAILABLE LEASED AVAILABLE
-----------------------------------------------------------------------
Beaver Valley Mall 89.8% 10.2% 78.1% 21.9%
Bradley Square 84.8% 15.2% 59.5% 40.5%
Capital City 99.3% 0.7% 98.8% 1.2%
Chambersburg Mall 93.5% 6.5% 86.2% 13.8%
Cherry Hill Mall 93.4% 6.6% 93.4% 6.6%
Crossroads Mall 94.4% 5.6% 87.0% 13.0%
Dartmouth Mall 95.8% 4.2% 93.1% 6.9%
Echelon Mall 39.9% 60.1% 68.6% 31.4%
Exton Square Mall 93.2% 6.8% 85.2% 14.8%
Francis Scott Key Mall 96.1% 3.9% 92.0% 8.0%
Jacksonville Mall 97.8% 2.2% 95.6% 4.4%
Laurel Mall 95.5% 4.5% 87.9% 12.1%
Lehigh Valley Mall 90.4% 9.6% 86.1% 13.9%
Logan Valley Mall 98.3% 1.7% 95.9% 4.1%
Lycoming Mall 92.1% 7.9% 84.6% 15.4%
Magnolia Mall 94.0% 6.0% 84.5% 15.5%
Martinsburg Mall 93.1% 6.9% 77.1% 22.9%
Moorestown Mall 95.6% 4.4% 90.1% 9.9%
Mount Berry Square 87.5% 12.5% 71.4% 28.6%
New River Valley Mall 93.6% 6.4% 85.5% 14.5%
Nittany Mall 94.2% 5.8% 88.3% 11.7%
North Hanover Mall 93.1% 6.9% 80.8% 19.2%
Palmer Park Mall 98.5% 1.5% 95.0% 5.0%
Patrick Henry Mall 99.2% 0.8% 98.2% 1.8%
Phillipsburg Mall 75.0% 25.0% 77.6% 22.4%
Plymouth Meeting Mall 74.0% 26.0% 91.0% 9.0%
Prince Georges Plaza 88.8% 11.2% 92.9% 7.1%
Schuylkill Mall 76.5% 23.5% 69.2% 30.8%
Shenango Valley Mall 96.1% 3.9% 81.5% 18.5%
South Mall 96.8% 3.2% 94.0% 6.0%
The Gallery at Market East 94.2% 5.8% 94.2% 5.8%
Uniontown Mall 95.6% 4.4% 89.0% 11.0%
Valley Mall 99.5% 0.5% 99.0% 1.0%
Valleyview Mall 93.5% 6.5% 90.9% 9.1%
Viewmont Mall 99.1% 0.9% 97.5% 2.5%
Washington Crown Center 93.9% 6.1% 88.7% 11.3%
West Manchester Mall 80.8% 19.2% 62.2% 37.8%
Willow Grove Park 95.7% 4.3% 92.8% 7.2%
Wiregrass Mall 82.6% 17.4% 82.6% 17.4%
Wyoming Valley Mall 98.0% 2.0% 94.2% 5.8%
- ------------------------------------------------------------------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE (1) 90.6% 9.4% 86.6% 13.4%
- ------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------
WHOLLY OWNED PROPERTIES 90.2% 9.8% 86.3% 13.7%
JOINT VENTURE PROPERTIES 94.6% 5.4% 89.4% 10.6%
-----------------------------------------------------------------------
PRI-MANAGED 90.5% 9.5% 86.6% 13.4%
NON PRI-MANAGED 92.7% 7.3% 86.6% 13.4%
-----------------------------------------------------------------------
SAME PROPERTIES/EXISTING 93.2% 6.8% 86.2% 13.8%
NEW 90.2% 9.8% 86.7% 13.3%
REDEVELOPMENT PROPERTIES 88.8% 11.2% 92.9% 7.1%
-----------------------------------------------------------------------
% CHANGE
-----------------------------------------------------------------------
IN-LINE ONLY
TOTAL TOTAL (NON- IN-LINE (NON-
W/ANCHOR W/ANCHOR % ANCHOR) % ANCHOR) %
% LEASED AVAILABLE LEASED AVAILABLE
-----------------------------------------------------------------------
Beaver Valley Mall -0.3% 0.3% -0.6% 0.6%
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 17.0% -17.0% 5.3% -5.3%
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 -0.4% 0.4% -1.1% 1.1%
Lehigh Valley Mall -1.7% 1.7% -2.4% 2.4%
Logan Valley Mall N/A N/A N/A N/A
Lycoming Mall N/A N/A N/A N/A
Magnolia Mall 2.8% -2.8% 7.4% -7.4%
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 2.9% -2.9% 9.7% -9.7%
Patrick Henry Mall N/A N/A N/A N/A
Phillipsburg Mall N/A N/A N/A N/A
Plymouth Meeting Mall N/A N/A N/A N/A
Prince Georges Plaza 1.2% -1.2% 2.5% -2.5%
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 3.1% -3.1% 5.1% -5.1%
Wiregrass Mall N/A N/A N/A N/A
Wyoming Valley Mall N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE (1) 0.5% -0.5% 1.0% -1.0%
- ------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------
WHOLLY OWNED PROPERTIES 3.0% -3.0% 2.6% -2.6%
JOINT VENTURE PROPERTIES 0.7% -0.7% 1.4% -1.4%
-----------------------------------------------------------------------
PRI-MANAGED 1.6% -1.6% 2.1% -2.1%
NON PRI-MANAGED -1.1% 1.1% -2.0% 2.0%
-----------------------------------------------------------------------
SAME PROPERTIES/EXISTING 3.5% -3.5% -0.1% 0.1%
NEW -1.7% 1.7% 3.1% -3.1%
REDEVELOPMENT PROPERTIES 88.8% 11.2% 92.9% 7.1%
-----------------------------------------------------------------------
Q1 03
-----------------------------------------------------------------------
IN-LINE ONLY
TOTAL TOTAL (NON- IN-LINE (NON-
W/ANCHOR W/ANCHOR % ANCHOR) % ANCHOR) %
% LEASED AVAILABLE LEASED AVAILABLE
-----------------------------------------------------------------------
Beaver Valley Mall 90.1% 9.9% 78.7% 21.3%
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 95.9% 4.1% 89.0% 11.0%
Lehigh Valley Mall 92.1% 7.9% 88.5% 11.5%
Logan Valley Mall N/A N/A N/A N/A
Lycoming Mall N/A N/A N/A N/A
Magnolia Mall 91.2% 8.8% 77.1% 22.9%
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 Mall N/A N/A N/A N/A
Prince Georges Plaza 87.6% 12.4% 90.4% 9.6%
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 92.6% 7.4% 87.7% 12.3%
Wiregrass Mall N/A N/A N/A N/A
Wyoming Valley Mall N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE (1) 90.1% 9.9% 85.7% 14.3%
- ------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------
WHOLLY OWNED PROPERTIES 87.2% 12.8% 83.7% 16.3%
JOINT VENTURE PROPERTIES 93.9% 6.1% 88.0% 12.0%
-----------------------------------------------------------------------
PRI-MANAGED 88.9% 11.1% 84.6% 15.4%
NON PRI-MANAGED 93.8% 6.2% 88.6% 11.4%
-----------------------------------------------------------------------
SAME PROPERTIES/EXISTING 89.6% 10.4% 86.3% 13.7%
NEW 91.9% 8.1% 83.6% 16.4%
REDEVELOPMENT PROPERTIES 0.0% 0.0% 0.0% 0.0%
-----------------------------------------------------------------------
(1) Prince Georges Plaza is classified as a redevelopment property and is not
included in the weighted average.
PAGE 25
PENNSYLVANIA REIT [PREIT LOGO] PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) LISTED
NYSE(R)
ENCLOSED MALLS
(Includes Non-Anchor Owned Space) Q1 04
---------------------------------------------------------------------------------------
AVG BASE AVG % ADDITIONAL AVG COMP OCCUP. COST
RENT PSF(1) RENT PSF(1) CHARGES PSF SALES PSF(2) RATIO
---------------------------------------------------------------------------------------
Beaver Valley Mall $ 16.72 $ 0.45 $ 6.62 $ 234 10.17%
Bradley Square 16.88 0.38 4.09 271 7.88%
Capital City 21.35 0.96 5.69 348 8.05%
Chambersburg Mall 19.19 0.20 4.74 231 10.45%
Cherry Hill Mall 35.41 0.95 17.15 418 12.80%
Crossroads Mall 16.46 0.83 7.82 254 9.89%
Dartmouth Mall 19.90 1.45 7.51 388 7.44%
Echelon Mall 23.73 0.21 12.01 223 16.12%
Exton Square Mall 33.64 0.69 14.86 370 13.29%
Francis Scott Key Mall 21.17 0.35 6.20 271 10.23%
Jacksonville Mall 21.57 1.07 5.92 365 7.83%
Laurel Mall 13.30 0.47 6.13 264 7.54%
Lehigh Valley Mall 30.06 0.52 9.90 413 9.80%
Logan Valley Mall 21.32 1.24 7.14 301 9.87%
Lycoming Mall 14.21 0.85 4.28 252 7.68%
Magnolia Mall (3) 24.32 0.38 9.87 315 10.97%
Martinsburg Mall 15.94 0.28 10.28 255 10.39%
Moorestown Mall 24.67 0.58 12.77 349 10.89%
Mount Berry Square 15.81 0.63 5.03 217 9.89%
New River Valley Mall 19.63 0.45 3.41 254 9.25%
Nittany Mall 19.87 0.53 8.17 254 11.25%
North Hanover Mall 18.57 1.02 7.37 276 9.77%
Palmer Park Mall 21.12 1.04 9.77 333 9.59%
Patrick Henry Mall 30.61 1.72 11.04 430 10.08%
Phillipsburg Mall 22.06 0.45 10.53 287 11.51%
Plymouth Meeting Mall 18.75 0.46 8.81 262 10.70%
Prince Georges Plaza (3) 23.75 1.20 11.92 379 9.73%
Schuylkill Mall 10.48 0.36 3.00 215 6.44%
Shenango Valley Mall 17.45 0.70 7.76 266 9.74%
South Mall 12.92 0.48 3.92 282 6.14%
The Gallery at Market East 33.21 0.53 9.73 346 12.56%
Uniontown Mall 13.74 0.74 3.71 253 7.19%
Valley Mall 17.85 0.81 5.37 307 7.83%
Valleyview Mall 22.71 0.33 11.52 308 11.22%
Viewmont Mall 22.22 1.65 6.88 343 8.97%
Washington Crown Center 15.65 0.24 3.68 253 7.73%
West Manchester Mall 16.43 0.31 4.84 211 10.23%
Willow Grove Park 37.64 0.29 20.61 401 14.60%
Wiregrass Mall 20.57 0.48 7.67 259 11.09%
Wyoming Valley Mall 21.83 0.44 7.29 303 9.76%
- --------------------------------------------------------------------------------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE $ 22.00 $ 0.67 $ 8.56 $ 307 10.18%
- --------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
WHOLLY OWNED PROPERTIES $ 21.21 $ 0.69 $ 8.07 $ 298 10.04%
JOINT VENTURE PROPERTIES $ 28.31 $ 0.51 $ 12.49 $ 373 11.07%
---------------------------------------------------------------------------------------
PRI-MANAGED $ 21.81 $ 0.68 $ 8.55 $ 303 10.25%
NON PRI-MANAGED $24.84 $ 0.51 $ 8.73 $ 367 9.29%
---------------------------------------------------------------------------------------
SAME PROPERTIES/EXISTING $ 21.34 $ 0.74 $ 8.02 $ 334 9.01%
NEW $ 22.11 $ 0.66 $ 8.65 $ 302 10.40%
REDEVELOPMENT PROPERTIES $ 23.75 $ 1.20 $ 11.92 $ 379 9.73%
---------------------------------------------------------------------------------------
% CHANGE
---------------------------------------------------------------------------------------
AVG BASE AVG % ADDITIONAL AVG COMP OCCUP. COST
RENT PSF RENT PSF CHARGES PSF SALES PSF RATIO
---------------------------------------------------------------------------------------
Beaver Valley Mall -3.8% 11.6% 24.5% -4.5% 0.7%
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 6.8% 7.8% -6.3% -3.0% 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 0.0% -16.2% 36.0% 0.8% 0.5%
Lehigh Valley Mall 1.0% -6.1% 1.5% -3.7% 0.5%
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) -5.1% -72.2% -2.0% 0.6% -0.9%
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 -2.9% -28.7% -3.6% 2.1% -0.6%
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 Mall N/A N/A N/A N/A N/A
Prince Georges Plaza (3) 2.0% 3.3% 8.5% -1.6% 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 -2.8% -30.9% 8.4% -0.5% 0.2%
Wiregrass Mall N/A N/A N/A N/A N/A
Wyoming Valley Mall N/A N/A N/A N/A N/A
- --------------------------------------------------------------------------------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE -9.6% -18.2% -13.0% -13.7% 0.3%
- --------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
WHOLLY OWNED PROPERTIES 3.1% -30.8% -2.6% -10.6% 1.1%
JOINT VENTURE PROPERTIES -0.6% -18.4% 8.1% -1.6% 0.4%
---------------------------------------------------------------------------------------
PRI-MANAGED -9.9% -26.1% -18.7% -12.7% 0.0%
NON PRI-MANAGED 0.7% -9.3% 7.3% -2.9% 0.5%
---------------------------------------------------------------------------------------
SAME PROPERTIES/EXISTING -1.3% -10.7% -2.0% -4.8% 0.3%
NEW -35.0% -13.8% -45.2% -18.5% -3.2%
REDEVELOPMENT PROPERTIES N/A N/A N/A N/A 9.7%
---------------------------------------------------------------------------------------
Q1 03
---------------------------------------------------------------------------------------
AVG BASE AVG % ADDITIONAL AVG COMP OCCUP. COST
RENT PSF(1) RENT PSF(1) CHARGES PSF SALES PSF(2) RATIO
---------------------------------------------------------------------------------------
Beaver Valley Mall $ 17.39 $ 0.40 $ 5.32 $ 245 9.43%
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 18.64 1.35 8.02 400 7.00%
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 13.30 0.56 4.51 262 7.01%
Lehigh Valley Mall 29.75 0.56 9.76 429 9.34%
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) 25.63 1.36 10.07 313 11.84%
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 21.74 1.46 10.14 326 10.23%
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 Mall N/A N/A N/A N/A N/A
Prince Georges Plaza (3) 23.28 1.16 10.98 385 9.20%
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 38.71 0.43 19.01 403 14.43%
Wiregrass Mall N/A N/A N/A N/A N/A
Wyoming Valley Mall N/A N/A N/A N/A N/A
- --------------------------------------------------------------------------------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE $ 24.33 $ 0.82 $ 9.84 $ 355 9.85%
- --------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
WHOLLY OWNED PROPERTIES $ 20.57 $ 1.00 $ 8.29 $ 334 8.95%
JOINT VENTURE PROPERTIES $ 28.47 $ 0.62 $ 11.56 $ 379 10.72%
---------------------------------------------------------------------------------------
PRI-MANAGED $ 24.19 $ 0.92 $ 10.51 $ 347 10.28%
NON PRI-MANAGED $ 24.67 $ 0.56 $ 8.14 $ 377 8.84%
---------------------------------------------------------------------------------------
SAME PROPERTIES/EXISTING $ 21.62 $ 0.83 $ 8.18 $ 351 8.73%
NEW $ 34.01 $ 0.76 $ 15.80 $ 371 13.64%
REDEVELOPMENT PROPERTIES $ - $ - $ - $ - 0.00%
---------------------------------------------------------------------------------------
(1) Base rent is actual for Q104. Additional charges and % rent are projections
for 2004.
(2) Average comparable sales for Q103 are actual.
(3) Prince Georges Plaza is classified as a redevelopment property and is not
included in the weighted average.
PAGE 26
PENNSYLVANIA REIT [PREIT LOGO] PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) LISTED
NYSE(R)
POWER CENTERS
(Includes Non-Anchor Owned Space) Q1 04 % CHANGE
------------------------------------------ ------------------------------------------
ADDITIONAL ADDITIONAL
AVG BASE AVG % CHARGES AVG BASE AVG % CHARGES
RENT PSF(1) RENT PSF(1) PSF RENT PSF RENT PSF PSF
------------------------------------------ ------------------------------------------
Christiana Power Center $ 20.03 $ - $ 1.76 2.9% N/A -4.2%
Creekview Shopping Center 14.37 - 2.80 0.4% N/A 8.6%
Northeast Tower Center 13.68 - 3.03 1.4% N/A 4.9%
Paxton Towne Centre 16.10 - 2.23 1.4% N/A -11.5%
The Court at Oxford Valley 15.33 - 3.90 1.2% N/A 3.5%
Red Rose Commons 13.81 0.06 3.21 4.4% 250.0% 11.2%
Whitehall Mall 10.72 0.33 3.13 -1.4% 31.2% -5.0%
Metroplex Shopping Center 18.13 - 3.58 0.0% N/A N/A
------------------------------------------ ------------------------------------------
POWER CENTERS WEIGHTED AVERAGE $ 15.33 $ 0.05 $ 3.12 1.2% 24.6% 36.3%
------------------------------------------ ------------------------------------------
------------------------------------------ ------------------------------------------
WHOLLY OWNED PROPERTIES $ 15.75 $ - $ 2.48 1.6% -100.0% -1.6%
JOINT VENTURE PROPERTIES $ 15.08 $ 0.08 $ 3.49 0.9% 29.4% 62.2%
------------------------------------------ ------------------------------------------
PRI-MANAGED $ 15.75 $ - $ 2.48 1.6% -100.0% -1.6%
NON PRI-MANAGED $ 15.08 $ 0.08 $ 3.49 0.9% 29.4% 62.2%
------------------------------------------ 1.5% -1.4% 40.4%
SAME PROPERTIES/EXISTING $ 15.33 $ 0.05 $ 3.12 ------------------------------------------
NEW $ - $ - $ - -100.0% N/A -100.0%
REDEVELOPMENT PROPERTIES $ - $ - $ - N/A N/A N/A
------------------------------------------ ------------------------------------------
Q1 03
------------------------------------------
ADDITIONAL
AVG BASE AVG % CHARGES
RENT PSF(1) RENT PSF(1) PSF
------------------------------------------
Christiana Power Center $ 19.46 $ 0.02 $ 1.84
Creekview Shopping Center 14.31 - 2.58
Northeast Tower Center 13.48 - 2.89
Paxton Towne Centre 15.88 - 2.51
The Court at Oxford Valley 15.14 0.03 3.77
Red Rose Commons 13.22 0.02 2.89
Whitehall Mall 10.87 0.26 3.29
Metroplex Shopping Center 18.13 - -
------------------------------------------
POWER CENTERS WEIGHTED AVERAGE $ 15.15 $ 0.04 $ 2.29
------------------------------------------
------------------------------------------
WHOLLY OWNED PROPERTIES $ 15.51 $ 0.00 $ 2.52
JOINT VENTURE PROPERTIES $ 14.94 $ 0.06 $ 2.15
------------------------------------------
PRI-MANAGED $ 15.51 $ 0.00 $ 2.52
NON PRI-MANAGED $ 14.94 $ 0.06 $ 2.15
------------------------------------------
SAME PROPERTIES/EXISTING $ 15.10 $ 0.05 $ 2.22
NEW $ 15.32 $ - $ 2.54
REDEVELOPMENT PROPERTIES $ - $ - $ -
------------------------------------------
(1) Base rent is actual for Q104. Additional charges and % rent are projections
for 2004.
OCCUPANCY
Q1 04 CHANGE IN % OCCUPANCY
------------------------------------------------ ------------------------------------------------
IN-LINE IN-LINE
IN-LINE (NON- IN-LINE (NON-
TOTAL TOTAL ONLY (NON- ANCHOR) TOTAL TOTAL ONLY (NON- ANCHOR)
W/ANCHOR W/ANCHOR ANCHOR) % W/ANCHOR W/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% 0.0% 0.0%
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% 0.0% 0.0%
Paxton Towne Centre 92.1% 7.9% 87.9% 12.1% 2.1% -2.1% 3.2% -3.2%
The Court at Oxford Valley 100.0% 0.0% 100.0% 0.0% 2.9% -2.9% 4.7% -4.7%
Red Rose Commons 99.2% 0.8% 99.2% 0.8% 0.0% 0.0% 0.0% 0.0%
Whitehall Mall 97.6% 2.4% 94.7% 5.3% 0.3% -0.3% 0.7% -0.7%
Metroplex Shopping Center 100.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
------------------------------------------------ ------------------------------------------------
POWER CENTERS WEIGHTED AVERAGE 98.4% 1.6% 97.4% 2.6% 0.9% -0.9% 1.3% -1.3%
------------------------------------------------ ------------------------------------------------
------------------------------------------------ ------------------------------------------------
WHOLLY OWNED PROPERTIES 97.3% 2.7% 95.1% 4.9% 1.0% -1.0% 1.3% -1.3%
JOINT VENTURE PROPERTIES 99.1% 0.9% 98.8% 1.2% 0.9% -0.9% 1.2% -1.2%
------------------------------------------------ ------------------------------------------------
PRI-MANAGED 97.3% 2.7% 95.1% 4.9% 1.0% -1.0% 1.3% -1.3%
NON PRI-MANAGED 99.1% 0.9% 98.8% 1.2% 0.9% -0.9% 1.2% -1.2%
------------------------------------------------ ------------------------------------------------
SAME PROPERTIES/EXISTING 98.4% 1.6% 97.4% 2.6% -0.4% 0.4% -0.6% 0.6%
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
------------------------------------------------ ------------------------------------------------
Q1 03
------------------------------------------------
IN-LINE
IN-LINE (NON-
TOTAL TOTAL ONLY (NON- ANCHOR)
W/ANCHOR W/ANCHOR ANCHOR) %
% LEASED % AVAILABLE % LEASED AVAILABLE
------------------------------------------------
Christiana Power Center 100.0% 0.0% 100.0% 0.0%
Creekview Shopping Center 100.0% 0.0% 100.0% 0.0%
Northeast Tower Center 100.0% 0.0% 100.0% 0.0%
Paxton Towne Centre 90.0% 10.0% 84.8% 15.2%
The Court at Oxford Valley 97.1% 2.9% 95.3% 4.7%
Red Rose Commons 99.2% 0.8% 99.2% 0.8%
Whitehall Mall 97.3% 2.7% 94.0% 6.0%
Metroplex Shopping Center 100.0% 0.0% 100.0% 0.0%
------------------------------------------------
POWER CENTERS WEIGHTED AVERAGE 97.5% 2.5% 96.1% 3.9%
------------------------------------------------
------------------------------------------------
WHOLLY OWNED PROPERTIES 96.3% 3.7% 93.8% 6.2%
JOINT VENTURE PROPERTIES 98.3% 1.7% 97.5% 2.5%
------------------------------------------------
PRI-MANAGED 96.3% 3.7% 93.8% 6.2%
NON PRI-MANAGED 98.3% 1.7% 97.5% 2.5%
------------------------------------------------
SAME PROPERTIES/EXISTING 98.7% 1.3% 98.0% 2.0%
NEW N/A N/A N/A N/A
REDEVELOPMENT PROPERTIES N/A N/A N/A N/A
------------------------------------------------
PAGE 27
PENNSYLVANIA REIT [PREIT LOGO] PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) LISTED
NYSE(R)
STRIP CENTERS
(Includes Non-Anchor Owned Space) Q1 04 % CHANGE
------------------------------------------ ------------------------------------------
ADDITIONAL ADDITIONAL
AVG BASE AVG % CHARGES AVG BASE AVG % CHARGES
RENT PSF(1) RENT PSF(1) PSF RENT PSF RENT PSF PSF
------------------------------------------ ------------------------------------------
Crest Plaza Shopping Center $ 15.36 $ - $ 2.66 8.0% N/A -27.4%
Festival at Exton 16.77 - 3.09 3.4% N/A -7.5%
The Commons at Magnolia 12.89 - 1.77 0.6% N/A 27.0%
Rio Grande Mall 5.89 - 0.25 0.2% N/A 0.0%
South Blanding Village 9.16 - 2.23 4.1% N/A -14.5%
Springfield Park I & II 17.66 - 4.50 0.4% N/A -24.3%
------------------------------------------ ------------------------------------------
STRIP CENTERS WEIGHTED AVERAGE $ 13.82 $ - $ 2.52 3.0% N/A -13.2%
------------------------------------------ ------------------------------------------
------------------------------------------ ------------------------------------------
WHOLLY OWNED PROPERTIES $ 14.34 $ - $ 2.54 3.5% N/A -9.7%
JOINT VENTURE PROPERTIES $ 12.06 $ - $ 2.48 0.3% N/A -23.4%
------------------------------------------ ------------------------------------------
PRI-MANAGED $ 14.78 $ - $ 2.80 2.9% N/A -13.5%
NON PRI-MANAGED $ 5.89 $ - $ 0.25 0.2% N/A 0.0%
------------------------------------------ ------------------------------------------
SAME PROPERTIES/EXISTING $ 13.50 $ - $ 2.50 1.7% N/A -9.8%
------------------------------------------
NEW $ 15.36 $ - $ 2.66 8.0% N/A -27.4%
REDEVELOPMENT PROPERTIES $ - $ - $ - N/A N/A N/A
------------------------------------------ ------------------------------------------
Q1 03
------------------------------------------
ADDITIONAL
AVG BASE AVG % CHARGES
RENT PSF(1) RENT PSF(1) PSF
------------------------------------------
Crest Plaza Shopping Center $ 14.23 $ - $ 3.66
Festival at Exton 16.23 - 3.34
The Commons at Magnolia 12.81 0.03 1.40
Rio Grande Mall 5.87 - 0.25
South Blanding Village 8.80 - 2.61
Springfield Park I & II 17.59 - 5.95
------------------------------------------
STRIP CENTERS WEIGHTED AVERAGE $ 13.43 $ 0.01 $ 2.91
------------------------------------------
------------------------------------------
WHOLLY OWNED PROPERTIES $ 13.85 $ 0.01 $ 2.81
JOINT VENTURE PROPERTIES $ 12.01 $ - $ 3.24
------------------------------------------
PRI-MANAGED $ 14.36 $ 0.01 $ 3.24
NON PRI-MANAGED $ 5.87 $ - $ 0.25
------------------------------------------
SAME PROPERTIES/EXISTING $ 13.28 $ 0.01 $ 2.77
NEW $ 14.23 $ - $ 3.66
REDEVELOPMENT PROPERTIES $ - $ - $ -
------------------------------------------
(1) Base rent is actual for Q104. Additional charges and % rent are projections
for 2004.
OCCUPANCY
Q4 03 CHANGE IN % OCCUPANCY
------------------------------------------------ ------------------------------------------------
IN-LINE IN-LINE
IN-LINE (NON- IN-LINE (NON-
TOTAL TOTAL ONLY (NON- ANCHOR) TOTAL TOTAL ONLY (NON- ANCHOR)
W/ANCHOR W/ANCHOR ANCHOR) % W/ANCHOR W/ANCHOR ANCHOR) %
% LEASED % AVAILABLE % LEASED AVAILABLE % LEASED % AVAILABLE % LEASED AVAILABLE
------------------------------------------------ ------------------------------------------------
Crest Plaza Shopping Center 87.1% 12.9% 77.6% 22.4% 5.2% -5.2% 9.0% -9.0%
Festival at Exton 95.5% 4.5% 92.3% 7.7% -0.9% 0.9% -1.5% 1.5%
The Commons at Magnolia 97.6% 2.4% 95.3% 4.7% 0.0% 0.0% 0.0% 0.0%
Rio Grande Mall 99.6% 0.4% 97.8% 2.2% 0.0% 0.0% 0.0% 0.0%
South Blanding Village 99.1% 0.9% 96.9% 3.1% 1.7% -1.7% 5.5% -5.5%
Springfield Park I & II 90.9% 9.1% 73.5% 26.5% 0.0% 0.0% 0.0% 0.0%
------------------------------------------------ ------------------------------------------------
STRIP CENTERS WEIGHTED AVERAGE 95.3% 4.7% 88.2% 11.8% 0.8% -0.8% 2.0% -2.0%
------------------------------------------------ ------------------------------------------------
------------------------------------------------ ------------------------------------------------
WHOLLY OWNED PROPERTIES 94.9% 5.1% 89.8% 10.2% 1.3% -1.3% 2.6% -2.6%
JOINT VENTURE PROPERTIES 95.8% 4.2% 83.3% 16.7% 0.0% 0.0% 0.0% 0.0%
------------------------------------------------ ------------------------------------------------
PRI-MANAGED 94.0% 6.0% 87.2% 12.8% 1.0% -1.0% 2.2% -2.2%
NON PRI-MANAGED 99.6% 0.4% 97.8% 2.2% 0.0% 0.0% 0.0% 0.0%
------------------------------------------------ ------------------------------------------------
SAME PROPERTIES/EXISTING 96.6% 3.4% 90.9% 9.1% 0.1% -0.1% 0.2% -0.2%
NEW 87.1% 12.9% 77.6% 22.4% 5.2% -5.2% 9.0% -9.0%
REDEVELOPMENT PROPERTIES 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
------------------------------------------------ ------------------------------------------------
Q4 02
------------------------------------------------
IN-LINE
IN-LINE (NON-
TOTAL TOTAL ONLY (NON- ANCHOR)
W/ANCHOR W/ANCHOR ANCHOR) %
% LEASED % AVAILABLE % LEASED AVAILABLE
------------------------------------------------
Crest Plaza Shopping Center 81.9% 18.1% 68.6% 31.4%
Festival at Exton 96.4% 3.6% 93.9% 6.1%
The Commons at Magnolia 97.6% 2.4% 95.3% 4.7%
Rio Grande Mall 99.6% 0.4% 97.8% 2.2%
South Blanding Village 97.4% 2.6% 91.4% 8.6%
Springfield Park I & II 90.9% 9.1% 73.5% 26.5%
------------------------------------------------
STRIP CENTERS WEIGHTED AVERAGE 94.5% 5.5% 86.2% 13.8%
------------------------------------------------
WHOLLY OWNED PROPERTIES 93.6% 6.4% 87.2% 12.8%
JOINT VENTURE PROPERTIES 95.8% 4.2% 83.3% 16.7%
------------------------------------------------
PRI-MANAGED 93.0% 7.0% 85.0% 15.0%
NON PRI-MANAGED 99.6% 0.4% 97.8% 2.2%
------------------------------------------------
SAME PROPERTIES/EXISTING 96.5% 3.5% 90.7% 9.3%
NEW 81.9% 18.1% 68.6% 31.4%
REDEVELOPMENT PROPERTIES 0.0% 0.0% 0.0% 0.0%
------------------------------------------------
PAGE 28
PENNSYLVANIA REIT [PREIT LOGO] PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) LISTED
NYSE(R)
RETAIL PORTFOLIO
(Includes Non-Anchor Owned Space) Q1 04 % CHANGE
------------------------------------------ ------------------------------------------
ADDITIONAL ADDITIONAL
AVG BASE AVG % CHARGES AVG BASE AVG % CHARGES
RENT PSF(1) RENT PSF(1) PSF(1) RENT PSF(1) RENT PSF(1) PSF(1)
------------------------------------------ ------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE $ 22.00 $ 0.67 $ 8.56 -9.6% -18.2% -13.0%
POWER CENTERS WEIGHTED AVERAGE $ 15.33 $ 0.05 $ 3.12 1.2% 24.6% 36.3%
STRIP CENTERS WEIGHTED AVERAGE $ 13.82 $ - $ 2.52 3.0% N/A -13.2%
------------------------------------------ ------------------------------------------
------------------------------------------ ------------------------------------------
RETAIL PORTFOLIO WEIGHTED
AVERAGE(2) $ 20.72 $ 0.55 $ 7.53 5.4% 29.0% 23.1%
------------------------------------------ ------------------------------------------
------------------------------------------ ------------------------------------------
WHOLLY OWNED PROPERTIES(2) $ 20.65 $ 0.62 $ 7.52 13.7% 11.4% 30.5%
JOINT VENTURE PROPERTIES $ 21.00 $ 0.27 $ 7.55 0.1% -13.3% 17.4%
------------------------------------------ ------------------------------------------
PRI-MANAGED(2) $ 21.20 $ 0.61 $ 7.97 1.8% 6.6% 5.1%
NON PRI-MANAGED $ 18.13 $ 0.22 $ 5.15 0.5% -3.8% 25.1%
------------------------------------------ ------------------------------------------
SAME PROPERTIES/EXISTING $ 17.58 $ 0.32 $ 5.01 -3.5% -26.7% -4.0%
NEW $ 22.07 $ 0.65 $ 8.62 -11.7% 64.7% -9.2%
REDEVELOPMENT PROPERTIES(2) $ 23.75 $ 1.20 $ 11.92 N/A N/A N/A
------------------------------------------ ------------------------------------------
Q1 03
------------------------------------------
ADDITIONAL
AVG BASE AVG % CHARGES
RENT PSF(1) RENT PSF(1) PSF(1)
------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE $ 20.57 $ 1.00 $ 8.29
POWER CENTERS WEIGHTED AVERAGE $ 15.15 $ 0.04 $ 2.29
STRIP CENTERS WEIGHTED AVERAGE $ 13.43 $ 0.01 $ 2.91
------------------------------------------
------------------------------------------
RETAIL PORTFOLIO WEIGHTED
AVERAGE(2) $ 19.65 $ 0.43 $ 6.12
------------------------------------------
------------------------------------------
WHOLLY OWNED PROPERTIES(2) $ 18.16 $ 0.56 $ 5.77
JOINT VENTURE PROPERTIES $ 20.97 $ 0.31 $ 6.43
------------------------------------------
PRI-MANAGED(2) $ 20.83 $ 0.58 $ 7.59
NON PRI-MANAGED $ 18.05 $ 0.23 $ 4.12
------------------------------------------
SAME PROPERTIES/EXISTING $ 18.22 $ 0.44 $ 5.22
NEW $ 24.99 $ 0.40 $ 9.49
REDEVELOPMENT PROPERTIES(2) $ - $ - $ -
------------------------------------------
(1) Base rent is actual for Q104. Additional charges and % rent are projections
for 2003.
(2) Prince Georges Plaza is classified as Redevelopment Property and is not
included in the weighted average.
OCCUPANCY
Q1 04 CHANGE IN % OCCUPANCY
------------------------------------------------ ------------------------------------------------
IN-LINE IN-LINE
IN-LINE (NON- IN-LINE (NON-
TOTAL TOTAL ONLY (NON- ANCHOR) TOTAL TOTAL ONLY (NON- ANCHOR)
W/ANCHOR W/ANCHOR ANCHOR) % W/ANCHOR W/ANCHOR ANCHOR) %
% LEASED % AVAILABLE % LEASED AVAILABLE % LEASED % AVAILABLE % LEASED AVAILABLE
------------------------------------------------ ------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE 90.6% 9.4% 86.6% 13.4% 0.5% -0.5% 1.0% -1.0%
POWER CENTERS WEIGHTED AVERAGE 98.4% 1.6% 97.4% 2.6% 0.9% -0.9% 1.3% -1.3%
STRIP CENTERS WEIGHTED AVERAGE 95.3% 4.7% 88.2% 11.8% 0.8% -0.8% 2.0% -2.0%
------------------------------------------------ ------------------------------------------------
------------------------------------------------ ------------------------------------------------
RETAIL PORTFOLIO WEIGHTED
AVERAGE(1) 91.7% 8.3% 88.3% 11.7% -1.2% 1.2% -1.7% 1.7%
------------------------------------------------ ------------------------------------------------
------------------------------------------------ ------------------------------------------------
WHOLLY OWNED PROPERTIES(1) 90.7% 9.3% 87.0% 13.0% 0.5% -0.5% -0.3% 0.3%
JOINT VENTURE PROPERTIES 96.5% 3.5% 93.8% 6.2% 0.7% -0.7% 1.3% -1.3%
------------------------------------------------ ------------------------------------------------
PRI-MANAGED(1) 91.0% 9.0% 87.2% 12.8% 0.1% -0.1% 0.2% -0.2%
NON PRI-MANAGED 96.6% 3.4% 94.4% 5.6% 0.0% 0.0% 0.0% 0.0%
------------------------------------------------ ------------------------------------------------
SAME PROPERTIES/EXISTING 95.8% 4.2% 92.3% 7.7% 2.5% -2.5% 0.9% -0.9%
NEW 90.2% 9.8% 86.6% 13.4% -1.2% 1.2% 1.5% -1.5%
REDEVELOPMENT PROPERTIES(1) 88.8% 11.2% 92.9% 7.1% 88.8% 11.2% 92.9% 7.1%
------------------------------------------------ ------------------------------------------------
Q1 03
------------------------------------------------
IN-LINE
IN-LINE (NON-
TOTAL TOTAL ONLY (NON- ANCHOR)
W/ANCHOR W/ANCHOR ANCHOR) %
% LEASED % AVAILABLE % LEASED AVAILABLE
------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE 90.1% 9.9% 85.7% 14.3%
POWER CENTERS WEIGHTED AVERAGE 97.5% 2.5% 96.1% 3.9%
STRIP CENTERS WEIGHTED AVERAGE 94.5% 5.5% 86.2% 13.8%
------------------------------------------------
------------------------------------------------
RETAIL PORTFOLIO WEIGHTED
AVERAGE(1) 92.9% 7.1% 90.0% 10.0%
------------------------------------------------
------------------------------------------------
WHOLLY OWNED PROPERTIES(1) 90.2% 9.8% 87.2% 12.8%
JOINT VENTURE PROPERTIES 95.8% 4.2% 92.6% 7.4%
------------------------------------------------
PRI-MANAGED(1) 90.9% 9.1% 87.0% 13.0%
NON PRI-MANAGED 96.6% 3.4% 94.4% 5.6%
------------------------------------------------
SAME PROPERTIES/EXISTING 93.3% 6.7% 91.3% 8.7%
NEW 91.5% 8.5% 85.2% 14.8%
REDEVELOPMENT PROPERTIES(1) 0.0% 0.0% 0.0% 0.0%
------------------------------------------------
(1) Prince Georges Plaza is classified as Redevelopment Property and is 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 29
PENNSYLVANIA REIT [PREIT LOGO] PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) LISTED
NYSE(R)
PREIT SERVICES, LLC/ PREIT-RUBIN INC.
PREIT Services, LLC and PREIT-RUBIN Inc. are the Trust's arms for comprehensive
development and management of retail and commercial properties. PREIT-RUBIN Inc.
provides third party management for 17 properties representing approximately 4.8
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
------------------------------------------------------------------------
MARCH 31, 2004
------------------------------------------------------------------------
RETAIL OFFICE/ INDUSTRIAL TOTAL
------------------------------------------------------------------------
# SQ FT # SQ FT # SQ FT
------------------------------------------------------------------------
MANAGED PORTFOLIO
PREIT-Owned 47 29,151,021 4 254,791 51 29,405,812
Non-PREIT Owned (1) 12 3,455,442 3 757,238 15 4,212,680
------------------------------------------------------------------------
TOTAL 59 32,606,463 7 1,012,029 66 33,618,492
------------------------------------------------------------------------
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 7 4,259,253 - - 7 4,259,253
Non-PREIT Owned - - - - - -
------------------------------------------------------------------------
TOTAL 7 4,259,253 - - 7 4,259,253
------------------------------------------------------------------------
TOTAL PORTFOLIO
PREIT-Owned 54 33,410,274 4 254,791 58 33,665,065
Non-PREIT Owned 13 3,959,158 4 876,720 17 4,835,878
========================================================================
TOTAL 67 37,369,432 8 1,131,511 75 38,500,943
------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
DECEMBER 31, 2003
---------------------------------------------------------------------------------------------
RETAIL MULTIFAMILY OFFICE/INDUSTRIAL TOTAL
---------------------------------------------------------------------------------------------
# SQ FT # SQ FT # SQ FT # SQ FT
---------------------------------------------------------------------------------------------
MANAGED PORTFOLIO
PREIT-Owned 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 0 - 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 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
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
NET GAIN (LOSS) IN CONTRACTS
---------------------------------------------------------------------------------------
RETAIL MULTIFAMILY OFFICE/ INDUSTRIAL TOTAL
---------------------------------------------------------------------------------------
# SQ FT # SQ FT # SQ FT # SQ FT
---------------------------------------------------------------------------------------
MANAGED PORTFOLIO
PREIT-Owned - (26,948) - - - - - (26,948)
Non-PREIT Owned (1) - 115,158 - - - - - 115,158
---------------------------------------------------------------------------------------
TOTAL - 88,210 - - - - - 88,210
---------------------------------------------------------------------------------------
LEASED PORTFOLIO
PREIT-Owned - - - - - - - -
Non-PREIT Owned - - - - - - - -
---------------------------------------------------------------------------------------
TOTAL - - - - - - - -
---------------------------------------------------------------------------------------
ASSET MANAGED PORTFOLIO
PREIT-Owned - 1,786 - - - - - 1,786
Non-PREIT Owned - - - - - - - -
---------------------------------------------------------------------------------------
TOTAL - 1,786 - - - - - 1,786
---------------------------------------------------------------------------------------
TOTAL PORTFOLIO
PREIT-Owned - (25,162) - - - - - (25,162)
Non-PREIT Owned - 115,158 - - - - - 115,158
=======================================================================================
TOTAL - 89,996 - - - - - 89,996
---------------------------------------------------------------------------------------
(1) The increase in Non-PREIT Owned GLA is a result of the opening of BJ's
Wholesale Club in Cumberland Mall.
PAGE 30
PENNSYLVANIA REIT
FLASH REPORT (MARCH 31, 2004) [PREIT LOGO] PEI
QUARTERLY COMPARISON LISTED
FINANCIAL STATEMENT NYSE(R)
- ---------------------------------------------------------------------------------------------------------------
Q1 04
(3 MONTHS ENDED 3/31/04)
- ---------------------------------------------------------------------------------------------------------------
CORPORATE/OTHER
RETAIL PROPERTIES TOTAL % CHANGE
- ---------------------------------------------------------------------------------------------------------------
Real Estate Revenues:
Same Store $ 21,371,516 $ 96,831 $ 21,468,347 2.0%
New 83,904,022 - 83,904,022 N/A
Redevelopment 3,356,579 - 3,356,579 N/A
Discontinued Operations - - -
- ---------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 108,632,116 96,831 108,728,947 164.5%
- ---------------------------------------------------------------------------------------------------------------
Operating Expenses (includes minority
interest in properties):
Same Store 6,340,576 12,275 6,352,851 2.3%
New 35,468,532 - 35,468,532 N/A
Redevelopment 1,160,024 - 1,160,024 N/A
Discontinued Operations - - -100.0%
- ---------------------------------------------------------------------------------------------------------------
Total Operating Expenses 42,969,132 12,275 42,981,407 188.0%
- ---------------------------------------------------------------------------------------------------------------
NOI:
Same Store 15,030,940 84,556 15,115,496 1.8%
New 48,435,490 - 48,435,490 N/A
Redevelopment 2,196,555 - 2,196,555 N/A
Discontinued Operations - - - -100.0%
- ---------------------------------------------------------------------------------------------------------------
NOI 65,662,984 84,556 65,747,540 151.1%
- ---------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue - 2,458,343 2,458,343 12.7%
Interest Income - 253,728 253,728 79.3%
General & Administrative
Corporate Payroll - (6,692,085) (6,692,085) 84.0%
Other G&A Expenses - (4,118,759) (4,118,759) 53.1%
- ---------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 65,662,984 (8,014,217) 57,648,767 159.9%
- ---------------------------------------------------------------------------------------------------------------
Interest Expense (19,091,687) (1,657,535) (20,749,222) 96.0%
Depreciation and Amortization (26,409,296) (12,540) (26,421,836) 262.5%
Gain(loss) on Sale of Interests in RE - - N/A
DISCONTINUED OPERATIONS
Income from Disposed Real Estate - - - N/A
Minority Interest of O.P. Unitholders - (180,440) (180,440) N/A
Gain(loss) on Disposition of Discontinued
Operations (550,000) (550,000) N/A
- ---------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - (730,440) (730,440) N/A
- ---------------------------------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) - - - N/A
Minority Interest of O.P. Unit Holders - (783,938) (783,938) 173.7%
- ---------------------------------------------------------------------------------------------------------------
NET INCOME 20,162,001 (11,198,670) 8,963,331 80.1%
- ---------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate - 550,000 550,000 N/A
Depreciation and Amor. of Real Estate 26,409,296 (52,460) 26,356,836 264.8%
Dividends on preferred shares (3,403,125) (3,403,125) N/A
FFO Adjustments - 964,378 964,378 84.6%
- ---------------------------------------------------------------------------------------------------------------
FFO 46,571,297 (13,139,877) 33,431,420 189.9%
- ---------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents (1,349,222) - (1,349,222) 261.8%
Recurring Capital Expenditures (854,898) - (854,898) 72.0%
Amortization of debt premium (4,864,640) (4,864,640) N/A
- ---------------------------------------------------------------------------------------------------------------
FAD $ 39,502,537 (13,139,877) $ 26,362,660 147.2%
- ---------------------------------------------------------------------------------------------------------------
Total Dividends $ 24,704,249 166.0%
Share Price (at close) $ 37.66 31.4%
Weighted Average Number of Shares 35,403,257 114.0%
WA number of Shares and O.P. Units 39,239,401 114.3%
- ---------------------------------------------------------------------------------------------------------------
NET INCOME/SHARE $ 0.16 -47.8%
FFO/SHARE AND O.P. UNITS $ 0.85 35.3%
FAD/SHARE AND O.P. UNITS $ 0.67 15.4%
DIVIDEND/SHARE AND O.P. UNITS $ 0.54 5.9%
- ---------------------------------------------------------------------------------------------------------------
BALANCE SHEET
- ---------------------------------------------------------------------------------------------------------------
Q1 04
- ---------------------------------------------------------------------------------------------------------------
CORPORATE/OTHER
RETAIL PROPERTIES TOTAL % CHANGE
- ---------------------------------------------------------------------------------------------------------------
Investment in Real Estate, at cost $2,535,399,681 $ 35,257,864 $2,570,657,545 169.6%
Accumulated Depreciation (128,693,106) (2,089,311) (130,782,417) -28.9%
Investment in and advances to
Partnership and JVs - - - -100.0%
Other Assets 284,199,945 61,232,687 345,432,632 238.9%
- ---------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $2,690,906,520 $94,401,240 $2,785,307,760 219.6%
- ---------------------------------------------------------------------------------------------------------------
Mortgage Notes $1,386,313,775 $ - $1,386,313,775 189.9%
Line of Credit - 182,000,000 182,000,000 23.9%
Acquisition Term Loan & Unsecured Line
of Credit - - - N/A
Other Liabilities 52,677,689 35,420,631 88,098,320 205.8%
- ---------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $1,438,991,464 $ 217,420,631 $1,656,412,095 153.3%
- ---------------------------------------------------------------------------------------------------------------
Minority Interest $4,546,973 $ 112,836,314 $ 117,383,287 264.1%
Total Shareholders Equity - 1,011,512,378 1,011,512,378 445.5%
- ---------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDER EQUITY $1,443,538,437 $1,341,769,323 $2,785,307,760 219.6%
- ---------------------------------------------------------------------------------------------------------------
Ratios
- ---------------------------------------------------------------------------------------------------------------
Q1 04 CHANGE
- ---------------------------------------------------------------------------------------------------------------
NOI/Investment in Real Estate 2.6% -0.2%
Total Dividends/Total FFO 73.9% -6.6%
Dividends/FFO per share 63.4% -17.6%
- ---------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Q1 03
(3 MONTHS ENDED 3/31/03)
- --------------------------------------------------------------------------------------------------------------------
CORPORATE/OTHER
RETAIL MULTIFAMILY PROPERTIES TOTAL
- --------------------------------------------------------------------------------------------------------------------
Real Estate Revenues:
Same Store $ 20,971,439 $ 0 $ 83,046 $ 21,054,485
New 2,039,859 - - 2,039,859
Redevelopment 3,096,792 - - 3,096,792
Discontinued Operations - 14,922,724 - 14,922,724
- --------------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 26,108,090 14,922,724 83,046 41,113,860
- --------------------------------------------------------------------------------------------------------------------
Operating Expenses (includes minority
interest in properties):
Same Store 6,205,205 - 4,320 6,209,525
New 1,230,707 - - 1,230,707
Redevelopment 1,045,286 - - 1,045,286
Discontinued Operations - 6,440,193 6,440,193
- --------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 8,481,198 6,440,193 4,320 14,925,711
- --------------------------------------------------------------------------------------------------------------------
NOI:
Same Store 14,766,234 - 78,726 14,844,960
New 809,152 - - 809,152
Redevelopment 2,051,506 - - 2,051,506
Discontinued Operations - 8,482,531 8,482,531
- --------------------------------------------------------------------------------------------------------------------
NOI 17,626,892 8,482,531 78,726 26,188,149
- --------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue - - 2,181,280 2,181,280
Interest Income - - 141,506 141,506
General & Administrative
Corporate Payroll - - (3,636,227) (3,636,227)
Other G&A Expenses - - (2,690,064) (2,690,064)
- --------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 17,626,892 8,482,531 (3,924,779) 22,184,644
- --------------------------------------------------------------------------------------------------------------------
Interest Expense (6,779,898) (3,716,099) (90,892) (10,586,889)
Depreciation and Amortization (4,822,017) (2,454,834) (12,915) (7,289,766)
Gain(loss) on Sale of Interests in RE 1,191,492 - - 1,191,492
DISCONTINUED OPERATIONS
Income from Disposed Real Estate - - - -
Minority Interest of O.P. Unitholders - - (236,046) (236,046)
Gain(loss) on Disposition of Discontinued
Operations - - - -
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - - (236,046) (236,046)
- --------------------------------------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) - - -
Minority Interest of O.P. Unit Holders - - (286,405) (286,405)
- --------------------------------------------------------------------------------------------------------------------
NET INCOME 7,216,469 2,311,598 (4,551,037) 4,977,030
- --------------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate (1,191,492) - - (1,191,492)
Depreciation and Amor. of Real Estate 4,822,017 2,454,834 (52,085) 7,224,766
Dividends on preferred shares
FFO Adjustments - - 522,451 522,451
- --------------------------------------------------------------------------------------------------------------------
FFO 10,846,994 4,766,432 (4,080,671) 11,532,755
- --------------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents (372,868) - - (372,868)
Recurring Capital Expenditures (9,625) (487,383) - (497,008)
Amortization of debt premium - - - -
- --------------------------------------------------------------------------------------------------------------------
FAD $ 10,464,501 $ 4,279,049 ($4,080,671) $ 10,662,879
- --------------------------------------------------------------------------------------------------------------------
Total Dividends $ 9,286,967
Share Price (at close) $ 28.65
Weighted Average Number of Shares 16,544,737
WA number of Shares and O.P. Units 18,308,057
- --------------------------------------------------------------------------------------------------------------------
NET INCOME/SHARE $ 0.30
FFO/SHARE AND O.P. UNITS $ 0.63
FAD/SHARE AND O.P. UNITS $ 0.58
DIVIDEND/SHARE AND O.P. UNITS $ 0.51
- --------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
- --------------------------------------------------------------------------------------------------------------------
Q1 03
- --------------------------------------------------------------------------------------------------------------------
CORPORATE/OTHER
RETAIL MULTIFAMILY PROPERTIES TOTAL
- --------------------------------------------------------------------------------------------------------------------
Investment in Real Estate, at cost $ 623,889,080 $ 306,455,620 $ 23,295,092 $ 953,639,792
Accumulated Depreciation (80,177,754) (101,801,110) (2,038,528) (184,017,392)
Investment in and advances to
Partnership and JVs - - 51,966 51,966
Other Assets 50,024,570 12,504,535 39,393,316 101,922,421
- --------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 593,735,896 $ 217,159,045 $ 60,701,846 $ 871,596,787
- --------------------------------------------------------------------------------------------------------------------
Mortgage Notes $ 278,887,114 $ 199,330,487 $ - $ 478,217,601
Line of Credit 96,533,360 9,839,946 40,526,694 146,900,000
Acquisition Term Loan & Unsecured Line
of Credit - - - -
Other Liabilities 11,640,685 5,155,013 12,013,627 28,809,325
- --------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 387,061,159 $ 214,325,446 $ 52,540,321 $ 653,926,926
- --------------------------------------------------------------------------------------------------------------------
Minority Interest $ 126,715 - $ 32,109,606 $ 32,236,321
Total Shareholders Equity - - 185,433,540 185,433,540
- --------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDER EQUITY $ 387,187,874 $ 214,325,446 $ 270,083,467 $871,596,787
- --------------------------------------------------------------------------------------------------------------------
Ratios
- --------------------------------------------------------------------------------------------------------------------
Q1 03
- --------------------------------------------------------------------------------------------------------------------
NOI/Investment in Real Estate 2.7%
Total Dividends/Total FFO 80.5%
Dividends/FFO per share 81.0%
- --------------------------------------------------------------------------------------------------------------------
NOTE: RECONCILIATION TO GAAP IS ON PAGES 32 TO 35.
PAGE 31
PENNSYLVANIA REIT [PREIT LOGO] PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) NYSE(R)
BALANCE SHEET-RECONCILIATION TO GAAP -----------------------------------------------------------------------------------
(Wholly Owned vs. JVs) MARCH 31, 2004
-----------------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO ASSETS HELD
TOTAL(1) EQUITY METHOD SUBTOTAL FOR SALE TOTAL
-----------------------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $2,535,399,681 $(135,981,353) $2,399,418,328 $ (96,448,111) $2,302,970,217
Multifamily Properties - - - - -
Industrial Properties 2,504,211 - 2,504,211 - 2,504,211
Land Held for Development 9,397,945 - 9,397,945 - 9,397,945
Construction In Progress 23,355,708 (1,506,178) 21,849,530 - 21,849,530
-----------------------------------------------------------------------------------
TOTAL INVESTMENTS IN REAL ESTATE 2,570,657,545 (137,487,531) 2,433,170,014 (96,448,111) 2,336,721,903
Accumulated Depreciation (130,782,417) 32,248,911 (98,533,506) - (98,533,506)
-----------------------------------------------------------------------------------
Net Real Estate 2,439,875,128 (105,238,620) 2,334,636,508 (96,448,111) 2,238,188,397
-----------------------------------------------------------------------------------
Investment in and advances to Partnerships
and JVs - 31,788,460 31,788,460 - 31,788,460
-----------------------------------------------------------------------------------
2,439,875,128 (73,450,160) 2,366,424,968 (96,448,111) 2,269,976,857
-----------------------------------------------------------------------------------
Allowance for Possible Losses
-----------------------------------------------------------------------------------
2,439,875,128 (73,450,160) 2,366,424,968 (96,448,111) 2,269,976,857
-----------------------------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 37,024,603 (4,459,678) 32,564,925 32,564,925
Rents and Other Receivables 34,051,459 (7,921,525) 26,129,934 - 26,129,934
Assets held for sale (2) 37,383,935 - 37,383,935 96,448,111 133,832,046
Intangible Assets (3) 171,993,180 - 171,993,180 - 171,993,180
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets 64,979,455 (11,737,281) 53,242,174 53,242,174
-----------------------------------------------------------------------------------
TOTAL OTHER ASSETS 345,432,632 (24,118,484) 321,314,148 96,448,111 417,762,259
-----------------------------------------------------------------------------------
TOTAL ASSETS 2,785,307,760 (97,568,644) 2,687,739,116 - 2,687,739,116
===================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 1,315,690,169 (109,096,195) 1,206,593,974 (60,461,378) 1,146,132,596
Mortgage Debt Premium (4) 70,623,606 - 70,623,606 (4,121,413) 66,502,193
Bank Loans Payable 182,000,000 - 182,000,000 - 182,000,000
Acquisition Term Loan & Unsecured Line
of Credit - - - - -
Construction Loans - - - - -
Assets held for sale 4,365,915 - 4,365,915 64,582,791 68,948,706
Other Liabilities (5) 83,732,405 11,527,551 95,259,956 95,259,956
-----------------------------------------------------------------------------------
TOTAL LIABILITIES 1,656,412,095 (97,568,644) 1,558,843,451 - 1,558,843,451
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Minority Interest 117,383,287 - 117,383,287 - 117,383,287
-----------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par 35,781,922 - 35,781,922 - 35,781,922
Preferred Shares $0.01 Par 24,750 - 24,750 - 24,750
Capital Contributed in Excess of Par 884,677,043 - 884,677,043 - 884,677,043
Restricted Stock (9,311,239) - (9,311,239) - (9,311,239)
Other Comprehensive Income (1,927,948) - (1,927,948) - (1,927,948)
Retained Earnings (Distributions in
Excess of Net Income) 102,267,850 - 102,267,850 - 102,267,850
-----------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 1,011,512,378 - 1,011,512,378 - 1,011,512,378
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,785,307,760 $ (97,568,644) $2,687,739,116 $ - $2,687,739,116
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
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
Land Held for Development
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 - 29,166,089 29,166,089 - 29,166,089
-----------------------------------------------------------------------------------
2,430,033,869 (73,795,111) 2,356,238,758 (118,887,475) 2,237,351,283
-----------------------------------------------------------------------------------
Allowance for Possible Losses
-----------------------------------------------------------------------------------
2,430,033,869 (73,795,111) 2,356,238,758 (118,887,475) 2,237,351,283
-----------------------------------------------------------------------------------
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 (2) 37,686,662 - 37,686,662 118,887,475 156,574,137
Intangible Assets (3) 181,544,375 - 181,544,375 - 181,544,375
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets 61,707,158 (11,942,821) 49,764,337 - 49,764,337
-----------------------------------------------------------------------------------
TOTAL OTHER ASSETS 369,138,761 (23,839,909) 345,298,852 118,887,475 464,186,327
-----------------------------------------------------------------------------------
TOTAL ASSETS 2,799,172,630 (97,635,020) 2,701,537,610 - 2,701,537,610
===================================================================================
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 (4) 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 (5) 90,784,568 11,946,639 102,731,207 - 102,731,207
-----------------------------------------------------------------------------------
TOTAL LIABILITIES 1,662,887,491 (97,635,020) 1,565,252,471 - 1,565,252,471
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
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 $ (97,635,020) $2,701,537,610 $ - $2,701,537,610
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO ASSETS HELD
TOTAL(1) EQUITY METHOD SUBTOTAL FOR SALE TOTAL
-----------------------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties $ 623,889,080 $(197,460,988) $ 426,428,092 $ - $4 26,428,092
Multifamily Properties 306,455,620 (14,745,274) 291,710,346 (291,710,346) -
Industrial Properties 2,504,211 - 2,504,211 - 2,504,211
Land Held for Development
Construction In Progress 20,790,881 (1,558,769) 19,232,112 - 19,232,112
-----------------------------------------------------------------------------------
TOTAL INVESTMENTS IN REAL ESTATE 953,639,792 (213,765,031) 739,874,761 (291,710,346) 448,164,415
Accumulated Depreciation (184,017,392) 45,408,385 (138,609,007) 94,573,319 (44,035,688)
-----------------------------------------------------------------------------------
Net Real Estate 769,622,400 (168,356,646) 601,265,754 (197,137,027) 404,128,727
-----------------------------------------------------------------------------------
Investment in and advances to Partnerships
and JVs 51,966 25,503,847 25,555,813 - 25,555,813
-----------------------------------------------------------------------------------
769,674,366 (142,852,799) 626,821,567 (197,137,027) 429,684,540
-----------------------------------------------------------------------------------
Allowance for Possible Losses
-----------------------------------------------------------------------------------
769,674,366 (142,852,799) 626,821,567 (197,137,027) 429,684,540
-----------------------------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 14,015,658 (5,901,127) 8,114,531 - 8,114,531
Rents and Other Receivables 18,758,338 (8,928,874) 9,829,464 - 9,829,464
Assets held for sale (2) 9,359,487 (1,474,569) 7,884,918 197,137,027 205,021,945
Intangible Assets (3) 18,973,235 - 18,973,235 - 18,973,235
Deferred Costs, Prepaid Taxes & Exp. &
Other Assets 40,815,703 (13,192,469) 27,623,234 - 27,623,234
-----------------------------------------------------------------------------------
TOTAL OTHER ASSETS 101,922,421 (29,497,039) 72,425,382 197,137,027 269,562,409
-----------------------------------------------------------------------------------
TOTAL ASSETS 871,596,787 (172,349,838) 699,246,949 - 699,246,949
===================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 478,217,601 (166,042,035) 312,175,566 (185,982,793) 126,192,773
Mortgage Debt Premium (4)
Bank Loans Payable 146,900,000 - 146,900,000 - 146,900,000
Acquisition Term Loan & Unsecured Line
of Credit - - - - -
Construction Loans - - - - -
Assets held for sale 5,155,013 (459,249) 4,695,764 185,982,793 190,678,557
Other Liabilities (5) 23,654,312 (5,848,554) 17,805,758 - 17,805,758
-----------------------------------------------------------------------------------
TOTAL LIABILITIES 653,926,926 (172,349,838) 481,577,088 - 481,577,088
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Minority Interest 32,236,321 - 32,236,321 - 32,236,321
-----------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par 16,753,814 - 16,753,814 - 16,753,814
Preferred Shares $0.01 Par
Capital Contributed in Excess of Par 218,157,987 - 218,157,987 - 218,157,987
Restricted Stock (3,578,645) - (3,578,645) - (3,578,645)
Other Comprehensive Income (3,845,468) - (3,845,468) - (3,845,468)
Retained Earnings (Distributions in
Excess of Net Income) (42,054,148) - (42,054,148) - (42,054,148)
-----------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 185,433,540 - 185,433,540 - 185,433,540
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 871,596,787 $(172,349,838) $ 699,246,949 $ - $ 699,246,949
-----------------------------------------------------------------------------------
(1) Includes PREIT's percent of JVs that is "grossed up" to reflect the
Company'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) 'During the first quarter of 2004, PREIT reallocated approximately $20
million of the amount originally allocated to the non-core properties to the
other properties acquired in the Crown merger.
(3) 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.
(4) Represents premium that is recorded in connection with debt assumed when a
property is purchased. The debt is marked to market at the acquisition date and
the premium is amortized through interest expense over the remaining term of the
debt.
(5) For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and
Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses and
Other Liabilities.
PAGE 32
PENNSYLVANIA REIT [PREIT LOGO] PEI
LISTED
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) NYSE(R)
INCOME STATEMENT-RECONCILIATION TO GAAP (1)
QUARTERLY COMPARISON
(Wholly Owned vs. JV's) Q1 04
(3 MONTHS ENDED 3/31/04)
----------------------------------------------------------------------------- --------
COMBINED ADJUSTMENTS TO ASSETS HELD TOTAL %
TOTAL(3) EQUITY METHOD SUBTOTAL FOR SALE TOTAL CHANGE
----------------------------------------------------------------------------- --------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 69,358,417 $ (5,155,520) $ 64,202,897 $ (4,838,562) $59,364,335 412.1%
Straight-Lining of Base Rents 1,349,222 (39,437) 1,309,785 (74,438) 1,235,347 272.4%
Percentage Rents 2,552,808 (237,047) 2,315,761 (143,117) 2,172,644 696.1%
Expense Reimbursables 32,375,641 (1,590,403) 30,785,238 (2,254,974) 28,530,264 631.3%
Lease Termination 26,689 - 26,689 - 26,689 -89.7%
Other Real Estate Revenues 3,066,170 (165,436) 2,900,734 (224,645) 2,676,089 697.9%
----------------------------------------------------------------------------- --------
TOTAL REVENUES 108,728,947 (7,187,843) 101,541,104 (7,535,736) 94,005,368 463.2%
----------------------------------------------------------------------------- --------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 32,801,832 (1,717,568) 31,084,264 (3,634,729) 27,449,535 661.5%
Real Estate Taxes 9,752,171 (577,269) 9,174,902 (594,035) 8,580,867 562.7%
Minority Interest in properties 427,404 - 427,404 (8,017) 419,387
----------------------------------------------------------------------------- --------
TOTAL EXPENSES 42,981,407 (2,294,837) 40,686,570 (4,236,781) 36,449,789 644.0%
----------------------------------------------------------------------------- --------
----------------------------------------------------------------------------- --------
NET OPERATING INCOME 65,747,540 (4,893,006) 60,854,534 (3,298,955) 57,555,579 388.0%
============================================================================= ========
OTHER INCOME (EXPENSES)
Management Company Revenue 2,458,343 - 2,458,343 2,458,343 12.7%
Interest Income 253,728 - 253,728 253,728 79.3%
GENERAL & ADMINISTRATIVE:
Corporate Payroll (6,692,085) - (6,692,085) (6,692,085) 84.0%
Other G&A Expenses (4,118,759) - (4,118,759) (4,118,759) 53.1%
----------------------------------------------------------------------------- --------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 57,648,767 (4,893,006) 52,755,761 (3,298,955) 49,456,806 534.9%
----------------------------------------------------------------------------- --------
Interest Expense (2) (20,749,222) 2,050,359 (18,698,863) 891,415 (17,807,448) 340.1%
Depreciation & Amortization (26,421,836) 1,077,961 (25,343,875) - (25,343,875) 621.4%
----------------------------------------------------------------------------- --------
TOTAL OTHER INCOME (EXPENSES) (47,171,058) 3,128,320 (44,042,738) 891,415 (43,151,323) 470.9%
----------------------------------------------------------------------------- --------
EQUITY IN INCOME OF PARTNERSHIPS AND JVS - 1,764,686 1,764,686 1,764,686
----------------------------------------------------------------------------- --------
Gains (losses) on sales of interests in
Real Estate - - - - - N/A
----------------------------------------------------------------------------- --------
Income before Minority Interest 10,477,709 - 10,477,709 (2,407,540) 8,070,169 152.2%
----------------------------------------------------------------------------- --------
Minority Interest of O.P. Unitholders (783,938) - (783,938) - (783,938) 173.7%
----------------------------------------------------------------------------- --------
Income from Operations 9,693,771 - 9,693,771 (2,407,540) 7,286,231 150.1%
----------------------------------------------------------------------------- --------
DISCONTINUED OPERATIONS:
Income from Discontinued Operations - - - 2,415,557 2,415,557 5.0%
Equity in Income of partnerships and JVs -
Minority interest in properties (8,017) (8,017)
Minority Interest of O.P. Unitholders (180,440) - (180,440) (180,440) N/A
Gain (losses) on Disposition of
Discontinued Operations (550,000) - (550,000) (550,000) N/A
----------------------------------------------------------------------------- --------
TOTAL DISCONTINUED OPERATIONS (730,440) - (730,440) 2,407,540 1,677,100 N/A
----------------------------------------------------------------------------- --------
Extraordinary item(Loss on early
extinguishment of debt) - - - - - N/A
----------------------------------------------------------------------------- --------
NET INCOME $ 8,963,331 $ - $ 8,963,331 $ - $ 8,963,331 80.1%
----------------------------------------------------------------------------- --------
Q1 03
(3 MONTHS ENDED 3/31/04)
-----------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO ASSETS HELD
TOTAL(3) EQUITY METHOD SUBTOTAL FOR SALE TOTAL
-----------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 32,368,324 $ (7,541,729) $ 24,826,595 $(13,233,874) $11,592,721
Straight-Lining of Base Rents 372,868 (41,135) 331,733 - 331,733
Percentage Rents 441,497 (168,602) 272,895 272,895
Expense Reimbursables 6,396,086 (2,494,909) 3,901,177 - 3,901,177
Lease Termination 324,797 (4,756) 320,041 (61,291) 258,750
Other Real Estate Revenues 1,210,288 (297,393) 912,895 (577,506) 335,389
-----------------------------------------------------------------------------
TOTAL REVENUES 41,113,860 (10,548,524) 30,565,336 (13,872,671) 16,692,665
-----------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 11,463,524 (3,211,415) 8,252,109 (4,647,605) 3,604,504
Real Estate Taxes 3,462,187 (851,376) 2,610,811 (1,315,969) 1,294,842
Minority Interest in properties
-----------------------------------------------------------------------------
TOTAL EXPENSES 14,925,711 (4,062,791) 10,862,920 (5,963,574) 4,899,346
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
NET OPERATING INCOME 26,188,149 (6,485,733) 19,702,416 (7,909,097) 11,793,319
=============================================================================
OTHER INCOME (EXPENSES)
Management Company Revenue 2,181,280 - 2,181,280 - 2,181,280
Interest Income 141,506 - 141,506 - 141,506
GENERAL & ADMINISTRATIVE:
Corporate Payroll (3,636,227) - (3,636,227) - (3,636,227)
Other G&A Expenses (2,690,064) - (2,690,064) - (2,690,064)
-----------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 22,184,644 (6,485,733) 15,698,911 (7,909,097) 7,789,814
-----------------------------------------------------------------------------
Interest Expense (2) (10,586,889) 3,240,322 (7,346,567) 3,300,575 (4,045,992)
Depreciation & Amortization (7,289,766) 1,468,172 (5,821,594) 2,308,553 (3,513,041)
-----------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (17,876,655) 4,708,494 (13,168,161) 5,609,128 (7,559,033)
-----------------------------------------------------------------------------
EQUITY IN INCOME OF PARTNERSHIPS AND JVS 1,777,239 1,777,239 1,777,239
-----------------------------------------------------------------------------
Gains (losses) on sales of interests in
Real Estate 1,191,492 - 1,191,492 - 1,191,492
-----------------------------------------------------------------------------
Income before Minority Interest 5,499,481 - 5,499,481 (2,299,969) 3,199,512
-----------------------------------------------------------------------------
Minority Interest of O.P. Unitholders (286,405) - (286,405) - (286,405)
-----------------------------------------------------------------------------
Income from Operations 5,213,076 - 5,213,076 (2,299,969) 2,913,107
-----------------------------------------------------------------------------
DISCONTINUED OPERATIONS:
Income from Discontinued Operations - - - 2,299,969 2,299,969
Equity in Income of partnerships and JVs -
Minority interest in properties
Minority Interest of O.P. Unitholders (236,046) - (236,046) - (236,046)
Gain (losses) on Disposition of
Discontinued Operations - - - - -
-----------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS (236,046) - (236,046) 2,299,969 2,063,923
-----------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - -
-----------------------------------------------------------------------------
NET INCOME $ 4,977,030 $ - $ 4,977,030 $ - $4,977,030
-----------------------------------------------------------------------------
(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 $195,466 not included in the quarter ended 3/31/04 and $378,076 not included
in the quarter ended 3/31/03.
(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 33
PENNSYLVANIA REIT [PREIT LOGO] PEI
FLASH REPORT-RECONCILIATION TO GAAP MARCH 31, 2004) LISTED
QUARTERLY COMPARISON NYSE(R)
FINANCIAL STATEMENT
Q1 04
(3 MONTHS ENDED 3/31/04)
- -------------------------------------------------------------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO ASSETS HELD
TOTAL EQUITY METHOD SUBTOTAL FOR SALE TOTAL
- -------------------------------------------------------------------------------------------------------------------------------
Real Estate Revenues:
Same Store $ 21,468,347 (7,187,843) $ 14,280,504 - $ 14,280,504
New 83,904,022 - 83,904,022 - 83,904,022
Redevelopment 3,356,579 - 3,356,579 - 3,356,579
Discontinued - - (7,535,736) (7,535,736)
- -------------------------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 108,728,947 (7,187,843) 101,541,104 (7,535,736) 94,005,368
- -------------------------------------------------------------------------------------------------------------------------------
Operating Expenses:
Same Store 6,352,851 (2,294,837) 4,058,014 - 4,058,014
New 35,468,532 - 35,468,532 - 35,468,532
Redevelopment 1,160,024 - 1,160,024 - 1,160,024
Discontinued - - (4,236,781) (4,236,781)
- -------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 42,981,407 (2,294,837) 40,686,570 (4,236,781) 36,449,789
- -------------------------------------------------------------------------------------------------------------------------------
NOI:
Same Store 15,115,496 (4,893,006) 10,222,490 - 10,222,490
New 48,435,490 - 48,435,490 - 48,435,490
Redevelopment 2,196,555 - 2,196,555 - 2,196,555
Discontinued - - - (3,298,955) (3,298,955)
- -------------------------------------------------------------------------------------------------------------------------------
NOI 65,747,540 (4,893,006) 60,854,534 (3,298,955) 57,555,579
- -------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue 2,458,343 - 2,458,343 - 2,458,343
Interest Income 253,728 - 253,728 - 253,728
General & Administrative:
Corporate Payroll (6,692,085) - (6,692,085) - (6,692,085)
Other G&A Expenses (4,118,759) - (4,118,759) - (4,118,759)
- -------------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 57,648,767 (4,893,006) 52,755,761 (3,298,955) 49,456,806
- -------------------------------------------------------------------------------------------------------------------------------
Interest Expense (20,749,222) 2,050,359 (18,698,863) $ 891,415 (17,807,448)
Depreciation and Amortization (26,421,836) 1,077,961 (25,343,875) - (25,343,875)
EQUITY IN INCOME OF PARTNERSHIP AND JVS - 1,764,686 1,764,686 - 1,764,686
Gain(loss) on Sale of Interests in RE - - - - -
DISCONTINUED OPERATIONS: - - -
Income from Disposed Real Estate - - - 2,415,557 2,415,557
Equity in income of partnership and JVs - - - - -
Minority Interest in properties - - - (8,017) (8,017)
Minority Interest of O.P. Unitholders (730,440) - (730,440) - (730,440)
Gain (losses) on Disposition of
Discontinued Operations - - - -
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS (730,440) - (730,440) 2,407,540 1,677,100
- -------------------------------------------------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - -
Minority Interest of OP Unit Holders (783,938) - (783,938) - (783,938)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCOME 8,963,331 - 8,963,331 - 8,963,331
- -------------------------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate 550,000 - 550,000 - 550,000
Depreciation and Amor. of Real Estate 26,356,836 - 26,356,836 - 26,356,836
Dividends on preferred shares (3,403,125) - (3,403,125) - (3,403,125)
FFO Adjustments 964,378 - 964,378 - 964,378
- -------------------------------------------------------------------------------------------------------------------------------
FFO 33,431,420 - 33,431,420 - 33,431,420
- -------------------------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents (1,349,222) - (1,349,222) - (1,349,222)
Recurring Capital Expenditures (854,898) - (854,898) - (854,898)
Amortization of Debt Premium (4,864,640) - (4,864,640) - (4,864,640)
- -------------------------------------------------------------------------------------------------------------------------------
FAD $ 26,362,660 $ - $ 26,362,660 $ - $ 26,362,660
- -------------------------------------------------------------------------------------------------------------------------------
Total Dividends $ 24,704,249
Share Price (at close) $37.66
Weighted Average Number of Shares 35,403,257
WA number of Shares and OP Units 39,239,401
- -------------------------------------------- --------------
NET INCOME/SHARE $ 0.16
FFO/SHARE AND OP UNITS $ 0.85
FAD/SHARE AND OP UNITS $ 0.67
DIVIDEND/SHARE AND OP UNITS $ 0.54
- -------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
- -------------------------------------------------------------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO ASSETS HELD
TOTAL EQUITY METHOD SUBTOTAL FOR SALE TOTAL
- -------------------------------------------------------------------------------------------------------------------------------
Investment in Real Estate, at cost $2,570,657,545 $ (137,487,531) $2,433,170,014 $ (96,448,111) $2,336,721,903
Accumulated Depreciation (130,782,417) 32,248,911 (98,533,506) - (98,533,506)
Investment in and advances to
Partnership and JVs - 31,788,460 31,788,460 - 31,788,460
Other Assets 345,432,632 (24,118,484) $ 321,314,148 96,448,111 417,762,259
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $2,785,307,760 $ (97,568,644) $2,687,739,116 $ - $2,687,739,116
- -------------------------------------------------------------------------------------------------------------------------------
Mortgage Notes $1,386,313,775 $ (109,096,195) $1,277,217,580 $ (64,582,791) $1,212,634,789
Line of Credit 182,000,000 - 182,000,000 - 182,000,000
Acquisition Term Loan & Unsecured
Line of Credit - - - - -
Other Liabilities 88,098,320 11,527,551 99,625,871 64,582,791 164,208,662
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $1,656,412,095 $ (97,568,644) $1,558,843,451 $ - $1,558,843,451
- -------------------------------------------------------------------------------------------------------------------------------
Minority Interest $ 117,383,287 $ - $ 117,383,287 $ - $ 117,383,287
Total Shareholders Equity 1,011,512,378 - 1,011,512,378 - 1,011,512,378
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDER EQUITY $2,785,307,760 $ (97,568,644) $2,687,739,116 $ - $2,687,739,116
- -------------------------------------------------------------------------------------------------------------------------------
Q1 03
(3 MONTHS ENDED 3/31/03)
- -------------------------------------------------------------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO ASSETS HELD
TOTAL EQUITY METHOD SUBTOTAL FOR SALE TOTAL
- -------------------------------------------------------------------------------------------------------------------------------
Real Estate Revenues:
Same Store $ 21,054,485 (7,711,687) $ 13,342,798 - $ 13,342,798
New 2,039,859 (1,786,784) 253,075 - 253,075
Redevelopment 3,096,792 - 3,096,792 - 3,096,792
Discontinued 14,922,724 (1,050,053) 13,872,671 (13,872,671) -
- -------------------------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 41,113,860 (10,548,524) 30,565,336 (13,872,671) 16,692,665
- -------------------------------------------------------------------------------------------------------------------------------
Operating Expenses:
Same Store 6,209,525 (2,503,944) 3,705,581 - 3,705,581
New 1,230,707 (1,082,228) 148,479 - 148,479
Redevelopment 1,045,286 - 1,045,286 - 1,045,286
Discontinued 6,440,193 (476,619) 5,963,574 (5,963,574) -
- -------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 14,925,711 (4,062,791) 10,862,920 (5,963,574) 4,899,346
- -------------------------------------------------------------------------------------------------------------------------------
NOI:
Same Store 14,844,960 (5,207,743) 9,637,217 - 9,637,217
New 809,152 (704,556) 104,596 - 104,596
Redevelopment 2,051,506 - 2,051,506 - 2,051,506
Discontinued 8,482,531 (573,434) 7,909,097 (7,909,097) -
- -------------------------------------------------------------------------------------------------------------------------------
NOI 26,188,149 (6,485,733) 19,702,416 (7,909,097) 11,793,319
- -------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue 2,181,280 - 2,181,280 - 2,181,280
Interest Income 141,506 - 141,506 - 141,506
General & Administrative: -
Corporate Payroll (3,636,227) - (3,636,227) - (3,636,227)
Other G&A Expenses (2,690,064) - (2,690,064) - (2,690,064)
- -------------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 22,184,644 (6,485,733) 15,698,911 (7,909,097) 7,789,814
- -------------------------------------------------------------------------------------------------------------------------------
Interest Expense (10,586,889) 3,240,322 (7,346,567) $3,300,575 (4,045,992)
Depreciation and Amortization (7,289,766) 1,468,172 (5,821,594) $2,308,553 (3,513,041)
EQUITY IN INCOME OF PARTNERSHIP AND JVS 1,777,239 1,777,239 - 1,777,239
Gain(loss) on Sale of Interests in RE 1,191,492 - 1,191,492 - 1,191,492
DISCONTINUED OPERATIONS: - - - -
Income from Disposed Real Estate - - - 2,299,969 2,299,969
Equity in income of partnership and JVs - - -
Minority Interest in properties
Minority Interest of O.P. Unitholders (236,046) - (236,046) - (236,046)
Gain (losses) on Disposition of
Discontinued Operations - - - -
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS (236,046) - (236,046) 2,299,969 2,063,923
- -------------------------------------------------------------------------------------------------------------------------------
Extraordinary item(Loss on early
extinguishment of debt) - - - - -
Minority Interest of OP Unit Holders (286,405) - (286,405) - (286,405)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCOME 4,977,030 - 4,977,030 - 4,977,030
- -------------------------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate (1,191,492) - (1,191,492) - (1,191,492)
Depreciation and Amor. of Real Estate 7,224,766 - 7,224,766 - 7,224,766
Dividends on preferred shares - - - - -
FFO Adjustments 522,451 - 522,451 - 522,451
- -------------------------------------------------------------------------------------------------------------------------------
FFO 11,532,755 - 11,532,755 - 11,532,755
- -------------------------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents (372,868) - (372,868) - (372,868)
Recurring Capital Expenditures (497,008) - (497,008) - (497,008)
Amortization of Debt Premium - - - - -
- -------------------------------------------------------------------------------------------------------------------------------
FAD $ 10,662,879 $ - $ 10,662,879 $ - $ 10,662,879
- -------------------------------------------------------------------------------------------------------------------------------
Total Dividends $ 9,286,967
Share Price (at close) $ 28.65
Weighted Average Number of Shares 16,544,737
WA number of Shares and OP Units 18,308,057
- -------------------------------------------- --------------
NET INCOME/SHARE $ 0.30
FFO/SHARE AND OP UNITS $ 0.63
FAD/SHARE AND OP UNITS $ 0.58
DIVIDEND/SHARE AND OP UNITS $ 0.51
- -------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
- -------------------------------------------------------------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO ASSETS HELD
TOTAL EQUITY METHOD SUBTOTAL FOR SALE TOTAL
- -------------------------------------------------------------------------------------------------------------------------------
Investment in Real Estate, at cost $ 953,639,792 $ (213,765,031) $ 739,874,761 (291,710,346) $ 448,164,415
Accumulated Depreciation (184,017,392) 45,408,385 (138,609,007) 94,573,319 (44,035,688)
Investment in and advances to
Partnership and JVs 51,966 25,503,847 25,555,813 - 25,555,813
Other Assets 101,922,421 (29,497,039) $ 72,425,382 197,137,027 269,562,409
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 871,596,787 $ (172,349,838) $ 699,246,949 - $ 699,246,949
- -------------------------------------------------------------------------------------------------------------------------------
Mortgage Notes $ 478,217,601 $ (166,042,035) $ 312,175,566 (185,982,793) $ 126,192,773
Line of Credit 146,900,000 - 146,900,000 - 146,900,000
Acquisition Term Loan & Unsecured
Line of Credit - - - - -
Other Liabilities 28,809,325 (6,307,803) 22,501,522 185,982,793 208,484,315
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 653,926,926 $ (172,349,838) $ 481,577,088 - $ 481,577,088
- -------------------------------------------------------------------------------------------------------------------------------
Minority Interest $ 32,236,321 $ - $ 32,236,321 - $ 32,236,321
Total Shareholders Equity 185,433,540 - 185,433,540 - 185,433,540
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDER EQUITY $ 871,596,787 $ (172,349,838) $ 699,246,949 - $ 699,246,949
- -------------------------------------------------------------------------------------------------------------------------------
PAGE 34
PENNSYLVANIA REIT [PREIT LOGO] PEI
QUARTERLY SUPPLEMENTAL DISCLOSURE (MARCH 31, 2004) LISTED
NYSE(R)
DEFINITIONS
FUND FROM OPERATIONS (FFO)
NAREIT defines FFO as income before gains (losses) on sales of properties and
extraordinary items (computed in accordance with GAAP); plus real estate
depreciation; plus or minus adjustments for unomnsolidated partnership and joint
ventures to reflect funds from operations on the same basis. 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.