EXhibit 99.1
[PREIT GRAPHIC OMITTED] PEI
LISTED
NYSE
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
QUARTERLY SUPPLEMENTAL DISCLOSURE
(SEPTEMBER 30, 2004)
WWW.PREIT.COM
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
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
THIS QUARTERLY SUPPLEMENTAL DISCLOSURE CONTAINS CERTAIN "FORWARD-LOOKING
STATEMENTS" THAT RELATE TO EXPECTATIONS, PROJECTIONS, ANTICIPATED EVENTS, TRENDS
AND OTHER MATTERS THAT ARE NOT HISTORICAL FACTS. THESE FORWARD-LOOKING
STATEMENTS REFLECT PREIT'S CURRENT VIEWS ABOUT FUTURE EVENTS AND ARE SUBJECT TO
RISKS, UNCERTAINTIES AND ASSUMPTIONS THAT MAY CAUSE FUTURE EVENTS, ACHIEVEMENTS
OR RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED BY THE FORWARD-LOOKING
STATEMENTS. PREIT'S BUSINESS IS SUBJECT TO UNCERTAINTIES REGARDING THE REVENUES,
OPERATING EXPENSES, LEASING ACTIVITIES, OCCUPANCY RATES, AND OTHER COMPETITIVE
FACTORS RELATING TO PREIT'S PORTFOLIO AND CHANGES IN LOCAL MARKET CONDITIONS AS
WELL AS GENERAL ECONOMIC, FINANCIAL AND POLITICAL CONDITIONS, WHICH MAY CAUSE
FUTURE EVENTS, ACHIEVEMENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED
BY THE FORWARD-LOOKING STATEMENTS. PREIT DISCLAIMS ANY DUTY TO UPDATE ANY
FORWARD-LOOKING STATEMENTS SET FORTH IN THIS QUARTERLY SUPPLEMENTAL DISCLOSURE
TO REFLECT NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. INVESTORS ARE ALSO
DIRECTED TO CONSIDER THE RISKS DISCUSSED IN DOCUMENTS PREIT HAS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION AND, IN PARTICULAR, PREIT'S ANNUAL REPORT ON
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2003.
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
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 31.0 million square feet) located in the
eastern United States. PREIT's portfolio consists of 52 properties in 12 states.
PREIT's portfolio includes 35 shopping malls, 13 strip and power centers and
four industrial properties. PREIT is headquartered in Philadelphia,
Pennsylvania.
RESEARCH COVERAGE
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COMPANY ANALYST PHONE NUMBER
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Green Street Advisors Gregory R. Andrews (949) 640-8780
Barbara M. Hoogland (949) 640-8780
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JP Morgan Michael W. Mueller (212) 622-6689
Anthony Paolone (212) 622-6682
Joshua Bederman (212) 622-6530
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Legg Mason Wood Walker David M. Fick (410) 539-0000
Nathan Isbee (410) 454-4143
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Lehman Brothers David Shulman (212) 526-3413
Alexander D. Goldfarb (212) 526-5232
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UBS Ian C. Weissman (212) 713-8602
Keith A. Mills (212) 713-3098
Frank Rybinski (212) 713-2364
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QUARTERLY EARNINGS SCHEDULE
PREIT's quarterly results will be announced in accordance with the following
schedule:
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QUARTER 2004 2003
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First Quarter 5/5/2004 5/14/2003
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Second Quarter 8/5/2004 8/11/2003
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Third Quarter 11/8/2004 11/5/2003
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Fourth Quarter 2/24/2005(1) 2/25/2004
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(1) Tentative dates.
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Quarterly conference calls are arranged by KCSA Worldwide. To
participate, please contact Evan Smith at (212) 896-1251.
For additional information, please contact:
Edward Glickman or Nurit Yaron
200 South Broad Street
Philadelphia, PA 19102
(215) 875-0700 Phone (866) 875-0700 Toll Free (215) 546-7311
Fax yaronn@preit.com Email
PAGE 1
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
TIME LINE/RECENT DEVELOPMENTS
OCTOBER 29, 2004 - Pennsylvania Real Estate Investment Trust announced that its
Board of Trustees 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 11.00% senior preferred shares.
OCTOBER 29, 2004 - Pennsylvania Real Estate Investment Trust announced that it
intends to release its financial results for the third quarter and nine months
ended September 30, 2004 on Monday, November 8, 2004. It also announced that
Management will hold a conference call on Monday, November 8, 2004 at 3:00PM ET
to review the Company's third quarter and nine month results, market trends and
future outlook.
OCTOBER 19, 2004 - Pennsylvania Real Estate Investment Trust announced that it
has signed a binding agreement to acquire Orlando Fashion Square in Orlando,
Florida, for approximately $123.5 million. The transaction is expected to be
completed in the fourth quarter of 2004.
OCTOBER 11, 2004 - Pennsylvania Real Estate Investment Trust announced that it
has reached an agreement with the owners of Cumberland Mall Associates to
acquire Cumberland Mall in Vineland, New Jersey for approximately $59.5 million.
The transaction is expected to be completed in the fourth quarter of 2004.
SEPTEMBER 28, 2004 - Pennsylvania Real Estate Investment Trust announced that it
completed the sale of non-core malls for a sale price of approximately $110.7
million. The Company did not record a gain or loss from the sale. The net cash
proceeds from the sale of the malls were approximately $108.5 million after
closing costs and adjustments and were used to pay down PREIT's credit facility.
The Company also announced that on August 31, 2004, it sold its 60% ownership
interest in Rio Grande Mall, a 166,000 square feet strip center in Rio Grande,
New Jersey, to an affiliate of its joint venture partner in this property, for
net proceeds of $4.1 million. PREIT recorded a gain of approximately $1.5
million in the third quarter of 2004 from this transaction.
AUGUST 23, 2004 - Pennsylvania Real Estate Investment Trust announced that it
has re-launched its website, www.preit.com.
AUGUST 5, 2004 - Pennsylvania Real Estate Investment Trust today announced its
results for the second quarter and six months ended June 30, 2004. Net income
available to common shareholders for the second quarter of 2004 was $0.21 per
diluted share. FFO per common share and Operating Partnership unit ("share") for
the second quarter of 2004 was $0.86, which was above the midpoint of the
Company's guidance provided in May 2004.
AUGUST 5, 2004 - Pennsylvania Real Estate Investment Trust announced a
redevelopment plan for Patrick Henry Mall in Newport News, VA. The 640,000
square foot center is currently anchored by Hecht's, JC Penney and two Dillard's
department stores. The plan incorporates a March 2005 closing of the 65,000
square foot Dillard's Men's store, and an expansion of the second store by
26,000 square feet, to a 142,000 square foot Dillard's location.
JULY 30, 2004 - Pennsylvania Real Estate Investment Trust announced that its
Board of Trustees 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 11.00% senior preferred shares.
JULY 30, 2004 - Pennsylvania Real Estate Investment Trust announced that its
Board of Trustees elected Professor Stephen B. Cohen to serve PREIT as a Class B
Trustee. The Board of Trustees also appointed Professor Cohen to serve as a
member of the Audit Committee.
JULY 26, 2004 - Pennsylvania Real Estate Investment Trust announced that it
intends to release its financial results for the second quarter and six months
ended June 30, 2004, on Thursday, August 5, 2004. It also announced that
Management will hold a conference call on Thursday, August 5, 2004 at 3:00PM EDT
to review the Company's second quarter and six month results, market trends and
future outlook.
JULY 14, 2004 - Pennsylvania Real Estate Investment Trust announced that Wal-
Mart Stores, Inc. will build a 147,550 square foot store at the Company's
Echelon Mall in Voorhees, New Jersey.
NOTE: COPIES OF THE PRESS RELEASES ARE AVAILABLE ON THE COMPANY'S WEBSITE AT
WWW.PREIT.COM.
PAGE 2
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
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).
Q3:9/30/04 Q2:6/30/04 Q1:3/31/04 CY:12/31/03
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High Price 38.85 37.87 37.85 36.30
Low Price 33.40 30.25 33.30 24.70
Close 38.66 34.25 37.66 36.30
Average Daily Trading Volume 122,095 181,397 220,144 109,892
Common Shares Outstanding at end of period 36,094,567 35,938,306 35,778,863 35,544,265
O.P. Units 4,429,030 4,444,030 3,834,714 3,691,516
--------- --------- --------- ---------
Fully Diluted Shares Outstanding 40,523,597 40,382,336 39,613,577 39,235,781
Weighted Avg. number of common shares outstanding 35,695,353 35,516,772 35,403,257 20,389,577
Weighted Avg. effect of full conversion of O.P. units 4,435,878 4,028,892 3,836,144 2,303,449
--------- --------- --------- ---------
Wtd Avg. Common Shares Outstanding and O.P. Units 40,131,231 39,545,664 39,239,401 22,693,026
Preferred Shares, Nominal Value $ 123,750,000 $ 123,750,000 $ 123,750,000 $ 123,750,000
Market Value of Shares (based on closing price) $1,690,392,260 $1,506,845,008 $1,615,597,310 $1,548,008,850
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Q3:9/30/03 CY 12/31/02 CY 12/31/01
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High Price 33.45 27.20 25.05
Low Price 29.80 20.55 18.25
Close 33.45 26.00 23.20
Average Daily Trading Volume 96,738 41,495 39,463
Common Shares Outstanding at end of period 23,480,595 16,697,119 15,876,084
O.P. Units 2,056,861 1,763,318 1,753,580
--------- --------- ---------
Fully Diluted Shares Outstanding 25,537,456 18,460,437 17,629,664
Weighted Avg. number of common shares outstanding 19,488,367 16,162,327 14,656,711
Weighted Avg. effect of full conversion of O.P. units 2,049,112 1,804,779 1,869,383
--------- --------- ---------
Wtd Avg. Common Shares Outstanding and O.P. Units 21,537,479 17,967,106 16,526,094
Preferred Shares, Nominal Value
Market Value of Shares (based on closing price) $854,227,903 $479,971,362 $409,008,205
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SHAREHOLDER INFORMATION
TEN LARGEST INSTITUTIONAL SHAREHOLDERS: COMMON SHARES HELD (1) 09/30/2004
----------
RREEF Real Estate Securities Advisers, L.P. 3,981,970
Barclays Global Investors 1,658,267
ING Clarion Real Estate Securities 1,428,553
Vanguard Group, Inc. 1,367,199
Urdang Investment Management, Inc. 756,600
State Street Global Advisors 737,063
Neuberger Berman, LLC 660,450
ABP Investment U.S.,Inc 550,000
J.P Morgan Investment Management Inc. (NY) 532,161
K.G. Redding & Associates 443,500
TOTAL OF TEN LARGEST INSTITUTIONAL: 12,115,763
TOTAL OF ALL INSTITUTIONAL HOLDERS: 19,667,756
TEN LARGEST AS % OF TOTAL INSTITUTIONAL: 61.6%
(1) Based on 13F filings as of 9/30/04 or most recent filings.
(GRAPH OMITTED)
INTERIM NET
SHARE OWNERSHIP BY INSIDERS: SHARES HELD (INCLUDING O.P. UNITS, AS OF % OF PURCHASES OF AS OF % OF
BENEFICIAL OWNERSHIP AND EXERCISABLE OPTIONS) 4/1/04(1) TOTAL (2) SHARES (3) 12/31/03(4) TOTAL (5)
--------- --------- ------------ ----------- ---------
Mark Pasquerilla 2,398,073 5.9% 1,000 2,397,073 6.1%
Ronald Rubin 859,469 2.1% 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 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) 4,708,120 11.8% 149,305 4,560,889 11.6%
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(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 September 30, 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.
DISTRIBUTION INFORMATION
Q3:9/30/04 Q2:6/30/04 Q1:3/31/04 CY:12/31/03 Q3:9/30/03 CY 12/31/02 CY 12/31/01
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Dividend per share $ 0.540 $ 0.540 $ 0.540 $ 2.070 $ 0.510 $ 2.040 $ 2.040
Annualized Dividend Yield(1) 5.6% 6.3% 5.7% 5.7% 6.1% 7.8% 8.8%
Capital Gain Pre-May 6 N/A N/A N/A 0.096 0 $ 0.082 $ 0.110
Capital Gain Post-May 5 N/A N/A N/A 0.213 0.055
Section 1250 Gain N/A N/A N/A 0.480 0.181 $ - $ 0.129
Return of Capital/Non-
Taxable N/A N/A N/A 0.085 0.021 $ 0.134 $ -
Qualified 5 Year Gain
(incl. in cap. Gain) N/A N/A N/A N/A N/A $ - $ -
Ordinary Income N/A N/A N/A $ 1.196 $ 0.253 $ 1.824 $ 1.801
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(1) Based on closing stock price for the period.
BREAKDOWN OF SHARE & UNIT % OF 9/30/04
OWNERSHIP: SHARES HELD 9/30/2004 9/30/03 TOTAL
---------- ---------- ------------
Institutional (1) 19,667,756 7,354,860 48.5%
Retail (2) 16,622,056 16,369,287 41.0%
Insiders (3) 4,233,785 1,813,309 10.4%
---------- ---------- ------
TOTAL 40,523,597 25,537,456 100.0%
(GRAPH OMITTED)
(1) Based on 13F filings as of 9/30/04 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).
PAGE 3
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
MARKET CAPITALIZATION
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31,
2004 2004 2004 2003
-------------- -------------- -------------- --------------
EQUITY CAPITALIZATION
Shares Outstanding 36,094,567 35,938,306 35,778,863 35,544,265
O.P. Units Outstanding 4,429,030 4,444,030 3,834,714 3,691,516
-------------- -------------- -------------- --------------
TOTAL Shares and O.P. Units 40,523,597 40,382,336 39,613,577 39,235,781
Market Price (at end of period) $ 38.66 $ 34.25 $ 37.66 $ 36.30
Preferred Shares, Nominal Value $ 123,750,000 $ 123,750,000 $ 123,750,000 $ 123,750,000
EQUITY MARKET CAPITALIZATION $1,690,392,260 $1,506,845,008 $1,615,597,310 $1,548,008,850
DEBT CAPITALIZATION
Unsecured Debt Balance $ 112,000,000 $ 219,000,000 $ 182,000,000 $ 170,000,000
Secured Debt Balance 1,366,090,242 1,376,148,003 1,386,313,775 1,396,262,538
-------------- -------------- -------------- --------------
DEBT CAPITALIZATION $1,478,090,242 $1,595,148,003 $1,568,313,775 $1,566,262,538
-------------- -------------- -------------- --------------
TOTAL MARKET CAPITALIZATION $3,168,482,502 $3,101,993,011 $3,183,911,085 $3,114,271,388
============== ============== ============== ==============
PREFERRED SHARES/TOTAL MARKET CAPITALIZATION 3.9% 4.0% 3.9% 4.0%
SHARES AND O.P. UNITS/TOTAL MARKET
CAPITALIZATION 49.4% 44.6% 46.9% 45.7%
DEBT CAPITALIZATION/TOTAL MARKET
CAPITALIZATION 46.6% 51.4% 49.3% 50.3%
EQUITY CAPITALIZATION/TOTAL MARKET
CAPITALIZATION 53.4% 48.6% 50.7% 53.6%
UNSECURED DEBT BALANCE/TOTAL DEBT 7.6% 13.7% 11.6% 10.9%
[ ] PREFERRED SHARES/TOTAL MARKET
CAPITALIZATION
[ ] SHARES AND O.P. UNITS/TOTAL MARKET GRAPHIC GRAPHIC GRAPHIC GRAPHIC
CAPITALIZATION OMMITED OMMITED OMMITED OMMITED
[ ] DEBT CAPITALIZATION/TOTAL MARKET
CAPITALIZATION
SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
2003 2002 2001
-------------- -------------- ------------
EQUITY CAPITALIZATION
Shares Outstanding 23,480,595 16,697,119 15,876,084
O.P. Units Outstanding 2,056,861 1,763,318 1,753,580
-------------- -------------- ------------
TOTAL Shares and O.P. Units 25,537,456 18,460,437 17,629,664
Market Price (at end of period) $ 33.45 $ 26.00 $ 23.20
Preferred Shares, Nominal Value
EQUITY MARKET CAPITALIZATION $ 854,227,903 $ 479,971,362 $409,008,205
DEBT CAPITALIZATION
Unsecured Debt Balance $ - $ -
Secured Debt Balance 739,061,360 617,279,770 506,175,818
-------------- -------------- ------------
DEBT CAPITALIZATION $ 739,061,360 $ 617,279,770 $506,175,818
-------------- -------------- ------------
TOTAL MARKET CAPITALIZATION $1,593,289,263 $1,097,251,132 $915,184,023
============== ============== ============
PREFERRED SHARES/TOTAL MARKET CAPITALIZATION
SHARES AND O.P. UNITS/TOTAL MARKET
CAPITALIZATION 53.6% 43.7% 44.7%
DEBT CAPITALIZATION/TOTAL MARKET
CAPITALIZATION 46.4% 56.3% 55.3%
EQUITY CAPITALIZATION/TOTAL MARKET
CAPITALIZATION 53.6% 43.7% 44.7%
UNSECURED DEBT BALANCE/TOTAL DEBT 0.0% 0.0% 0.0%
[ ] PREFERRED SHARES/TOTAL MARKET
CAPITALIZATION
[ ] SHARES AND O.P. UNITS/TOTAL MARKET GRAPHIC GRAPHIC GRAPHIC
CAPITALIZATION OMMITED OMMITED OMMITED
[ ] DEBT CAPITALIZATION/TOTAL MARKET
CAPITALIZATION
CAPITAL RESOURCES
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31,
2004 2004 2004 2003
-------------- -------------- -------------- --------------
CASH ON HAND $ 35,824,104 $ 32,002,089 $ 37,024,603 $ 46,883,041
LINE OF CREDIT CAPACITY (1) $ 500,000,000 $ 500,000,000 $ 500,000,000 $ 500,000,000
Amount Used (includes letters of credit) (114,124,533) (220,195,000) (183,195,000) (170,500,000)
-------------- -------------- -------------- --------------
Available LOC (2) $ 385,875,467 $ 279,805,000 $ 316,805,000 $ 329,500,000
SHELF REGISTRATION $1,000,000,000 $1,000,000,000 $1,000,000,000 $1,000,000,000
Amount Used (344,146,042) (344,146,042) (344,146,042) (344,146,042)
-------------- -------------- -------------- --------------
Available Shelf $ 655,853,958 $ 655,853,958 $ 655,853,958 $ 655,853,958
-------------- -------------- -------------- --------------
TOTAL CAPITAL RESOURCES $1,077,553,529 $ 967,661,047 $1,009,683,561 $1,032,236,999
============== ============== ============== ==============
SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
2003 2002 2001
------------- ------------- --------------
CASH ON HAND $ 43,512,963 $ 18,628,137 $ 16,242,450
LINE OF CREDIT CAPACITY (1) $ 200,000,000 $ 200,000,000 $ 175,000,000
Amount Used (includes letters of credit) (673,671) (131,473,671) (100,168,659)
------------- ------------- --------------
Available LOC (2) $ 199,326,329 $ 68,526,329 $ 74,831,341
SHELF REGISTRATION $ 500,000,000 $ 500,000,000 $ 200,000,000
Amount Used (344,146,042) (155,977,292) (148,925,000)
------------- ------------- --------------
Available Shelf $ 155,853,958 $ 344,022,708 $ 51,075,000
------------- ------------- --------------
TOTAL CAPITAL RESOURCES $ 398,693,250 $ 431,177,174 $ 142,148,791
============= ============= ==============
(1) The unsecured revolving line of credit established in November 2003 gives
PREIT the ability to increase the facility to $650 million under prescribed
conditions.
(2) The available line of credit is subject to covenants that may restrict
amounts that can be borrowed.
PAGE 4
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
BALANCE SHEET
(Wholly Owned vs. JVs)
----------------------------------------------------------------
SEPTEMBER 30, 2004
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PREIT PREIT'S % CORPORATE COMBINED
WHOLLY OWNED OF JVS (5) TOTAL
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ASSETS
Investments in Real Estate, at cost
Retail Properties (1) $2,382,406,902 $131,428,634 - $2,513,835,536
Multifamily Properties - - - -
Industrial Properties 2,504,211 - - 2,504,211
Land Held for Development 9,542,722 - - 9,542,722
Construction In Progress 21,905,523 1,693,762 - 23,599,285
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TOTAL INVESTMENTS IN REAL ESTATE 2,416,359,358 133,122,396 - 2,549,481,754
Accumulated Depreciation (132,819,645) (31,124,661) - (163,944,306)
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Net Real Estate 2,283,539,713 101,997,735 - 2,385,537,448
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Advances to Partnerships and Joint Ventures - - -
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2,283,539,713 101,997,735 - 2,385,537,448
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Other Assets:
Cash and Cash Equivalents 13,607,397 5,423,522 16,793,185 35,824,104
Rents and Other Receivables 24,535,010 6,894,906 1,093,147 32,523,063
Other assets held for sale (1) 6,441,947 - - 6,441,947
Intangible Assets (2) 151,473,409 - 11,801,252 163,274,661
Deferred Costs, Prepaid Taxes & Exp. & Other
Assets 41,626,021 11,015,165 16,972,315 69,613,501
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TOTAL OTHER ASSETS 237,683,784 23,333,593 46,659,899 307,677,276
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TOTAL ASSETS 2,521,223,497 125,331,328 46,659,899 2,693,214,724
================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 1,197,089,339 108,055,084 - 1,305,144,423
Mortgage Debt Premium (3) 60,945,819 - 60,945,819
Bank Loans Payable - - 112,000,000 112,000,000
Acquisition Term Loan & Unsecured Line of
Credit - - - -
Liabilities Related to Assets held for sale 707,595 - 707,595
Other Liabilities (4) 49,680,235 2,772,090 28,578,718 81,031,043
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TOTAL LIABILITIES 1,308,422,988 110,827,174 140,578,718 1,559,828,880
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----------------------------------------------------------------
Minority Interest 3,702,340 - 129,072,186 132,774,526
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Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - 36,094,566 36,094,566
Preferred Shares $0.01 Par 24,750 24,750
Capital Contributed in Excess of Par - - 892,853,369 892,853,369
Restricted Stock - - (8,593,279) (8,593,279)
Other Comprehensive Income - - (1,830,568) (1,830,568)
Retained Earnings (Distributions in Excess
of Net Income) - - 82,062,480 82,062,480
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TOTAL SHAREHOLDERS' EQUITY - - 1,000,611,318 1,000,611,318
----------------------------------------------------------------
----------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,312,125,328 $110,827,174 $1,270,262,222 $2,693,214,724
================================================================
----------------------------------------------------------------
DECEMBER 31, 2003
----------------------------------------------------------------
PREIT PREIT'S % CORPORATE COMBINED
WHOLLY OWNED OF JVS (5) 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
----------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 13,580,334 3,905,956 29,396,751 46,883,041
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 14,319,950 67,358,715
----------------------------------------------------------------
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 - - - -
Liabilities Related to Assets held for sale 5,840,385 - 5,840,385
Other Liabilities (4) 46,107,438 4,110,496 40,566,634 90,784,568
----------------------------------------------------------------
TOTAL LIABILITIES 1,338,628,702 113,692,155 210,566,634 1,662,887,491
----------------------------------------------------------------
----------------------------------------------------------------
Minority Interest 8,590,978 - 104,060,548 112,651,526
----------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - 35,544,280 35,544,280
Preferred Shares $0.01 Par 24,750 24,750
Capital Contributed in Excess of Par - - 877,444,615 877,444,615
Restricted Stock - - (3,195,777) (3,195,777)
Other Comprehensive Income - - (2,005,840) (2,005,840)
Retained Earnings (Distributions in Excess
of Net Income) - - 115,821,585 115,821,585
----------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - 1,023,633,613 1,023,633,613
----------------------------------------------------------------
----------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,347,219,680 $113,692,155 $1,338,260,795 $2,799,172,630
================================================================
--------------------------------------------------------------
SEPTEMBER 30, 2003
--------------------------------------------------------------
PREIT PREIT'S % CORPORATE COMBINED
WHOLLY OWNED OF JVS (5) TOTAL
--------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost
Retail Properties (1) $1,143,102,938 $146,787,604 - $1,289,890,542
Multifamily Properties - - - -
Industrial Properties 2,504,211 - - 2,504,211
Land Held for Development - - - -
Construction In Progress 16,110,564 1,563,289 - 17,673,853
--------------------------------------------------------------
TOTAL INVESTMENTS IN REAL ESTATE 1,161,717,713 148,350,893 - 1,310,068,606
Accumulated Depreciation (60,922,254) (36,454,134) - (97,376,388)
--------------------------------------------------------------
Net Real Estate 1,100,795,459 111,896,759 - 1,212,692,218
--------------------------------------------------------------
Advances to Partnerships and Joint Ventures - - 1,200,000 1,200,000
--------------------------------------------------------------
1,100,795,459 111,896,759 1,200,000 1,213,892,218
--------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 10,042,912 5,113,326 28,356,725 43,512,963
Rents and Other Receivables 11,108,819 8,570,389 2,230,635 21,909,843
Other assets held for sale (1) - - - -
Intangible Assets (2) 46,915,709 9,041,888 55,957,597
Deferred Costs, Prepaid Taxes & Exp. & Other
Assets 32,647,874 12,102,884 8,979,808 53,730,566
--------------------------------------------------------------
TOTAL OTHER ASSETS 100,715,314 25,786,599 48,609,056 175,110,969
--------------------------------------------------------------
TOTAL ASSETS 1,201,510,773 137,683,358 49,809,056 1,389,003,187
==============================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 599,292,496 118,525,862 - 717,818,358
Mortgage Debt Premium (3) 21,243,002 21,243,002
Bank Loans Payable -
Acquisition Term Loan & Unsecured Line of
Credit - - -
Liabilities Related to Assets held for sale 915,292 36,458 - 951,750
Other Liabilities (4) 25,504,728 4,429,363 12,458,923 42,393,014
--------------------------------------------------------------
TOTAL LIABILITIES 646,955,518 122,991,683 12,458,923 782,406,124
--------------------------------------------------------------
--------------------------------------------------------------
Minority Interest 5,991,467 - 58,270,123 64,261,590
--------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - 23,480,595 23,480,595
Preferred Shares $0.01 Par - -
Capital Contributed in Excess of Par - - 407,738,529 407,738,529
Restricted Stock - - (3,901,106) (3,901,106)
Other Comprehensive Income - - (1,928,590) (1,928,590)
Retained Earnings (Distributions in Excess
of Net Income) - - 116,946,045 116,946,045
--------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - 542,335,473 542,335,473
--------------------------------------------------------------
--------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 652,946,985 $122,991,683 $613,064,519 $1,389,003,187
==============================================================
(1) Investment in real estate as of September 30, 2004 and December 31, 2003
includes $8,102,171 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.
(2) Includes value of acquired in-place leases and above-market value of leases
recorded in connection with the acquisition of properties since 2002.
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 including Deficit JV Investments.
(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
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
BALANCE SHEET (1)
(Line of Business)
SEPTEMBER 30, 2004
------------------------------------------------------------------------------------------
POWER AND OTHER COMBINED
MALLS STRIP CENTERS TOTAL RETAIL PROPERTIES CORPORATE TOTAL
------------------------------------------------------------------------------------------
ASSETS
Investments in Real Estate, at
cost (2) $2,201,466,423 $312,369,113 $2,513,835,536 $35,646,218 $ - $2,549,481,754
==========================================================================================
Accumulated Depreciation (118,323,088) (43,506,827) (161,829,915) (2,114,391) - (163,944,306)
==========================================================================================
NET REAL ESTATE 2,083,143,335 268,862,286 2,352,005,621 33,531,827 - 2,385,537,448
==========================================================================================
Investments in PREIT-RUBIN
Advances to Partnerships and Joint
Ventures - - - - -
Advances to PREIT-RUBIN -
------------------------------------------------------------------------------------------
2,083,143,335 268,862,286 2,352,005,621 33,531,827 - 2,385,537,448
------------------------------------------------------------------------------------------
Allowance for Possible Losses - - - -
------------------------------------------------------------------------------------------
2,083,143,335 268,862,286 2,352,005,621 33,531,827 - 2,385,537,448
------------------------------------------------------------------------------------------
Other Assets:
Cash 15,834,332 3,196,587 19,030,919 16,793,185 35,824,104
Other assets held for sale 6,441,947 6,441,947 - 6,441,947
Intangible Assets (3) 151,473,409 151,473,409 11,801,252 163,274,661
Other Assets, Net (4) 47,464,010 24,494,001 71,958,011 12,113,091 18,065,462 102,136,564
------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 221,213,698 27,690,588 248,904,286 12,113,091 46,659,899 307,677,276
------------------------------------------------------------------------------------------
TOTAL ASSETS 2,304,357,033 296,552,874 2,600,909,907 45,644,918 46,659,899 2,693,214,724
==========================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 1,200,459,167 104,685,256 1,305,144,423 - - 1,305,144,423
Mortgage Debt Premium (5) 59,512,588 1,433,231 60,945,819 - 60,945,819
Bank Loans Payable - - 112,000,000 112,000,000
Acquisition Term Loan & Unsecured
Line of Credit - - - - -
Construction Loans - - - - - -
Liabilities Related to Assets held
for sale 707,595 707,595 - - 707,595
Other Liabilities (6) 44,109,107 4,680,136 48,789,243 3,663,082 28,578,718 81,031,043
------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,304,788,457 110,798,623 1,415,587,080 3,663,082 140,578,718 1,559,828,880
------------------------------------------------------------------------------------------
Minority Interest 3,702,340 3,702,340 - 129,072,186 132,774,526
------------------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest
at $1 Par - - - 36,094,566 36,094,566
Preferred Shares $0.01 Par 24,750 24,750
Capital Contributed in Excess
of Par - - - 892,853,369 892,853,369
Restricted Stock - - - (8,593,279) (8,593,279)
Other Comprehensive Income - - - (1,830,568) (1,830,568)
Retained Earnings (Distributions
in Excess of Net Income) - - - 82,062,480 82,062,480
------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - - - 1,000,611,318 1,000,611,318
------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $1,308,490,797 $110,798,623 $1,419,289,420 $ 3,663,082 $1,270,262,222 $2,693,214,724
==========================================================================================
DECEMBER 31, 2003
------------------------------------------------------------------------------------------
POWER AND OTHER COMBINED
MALLS STRIP CENTERS TOTAL RETAIL PROPERTIES CORPORATE 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 29,396,751 46,883,040
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 19,134,342 103,024,684
------------------------------------------------------------------------------------------
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 1,231,569,258 89,205,037 1,320,774,295 - - 1,320,774,295
Mortgage Debt Premium (5) 75,488,243 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 - - 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
==========================================================================================
SEPTEMBER 30, 2003
---------------------------------------------------------------------------------
COMBINED
RETAIL MULTIFAMILY OTHER PROPERTIES CORPORATE TOTAL
---------------------------------------------------------------------------------
ASSETS
Investments in Real Estate, at cost (2) $1,289,890,542 $ - $20,178,064 $ - $1,310,068,606
=================================================================================
Accumulated Depreciation (95,312,157) (2,064,231) - (97,376,388)
=================================================================================
NET REAL ESTATE 1,194,578,385 - 18,113,833 - 1,212,692,218
=================================================================================
Investments in PREIT-RUBIN
Advances to Partnerships and Joint Ventures - - - 1,200,000 1,200,000
Advances to PREIT-RUBIN
---------------------------------------------------------------------------------
1,194,578,385 - 18,113,833 1,200,000 1,213,892,218
---------------------------------------------------------------------------------
Allowance for Possible Losses - - - - -
---------------------------------------------------------------------------------
1,194,578,385 - 18,113,833 1,200,000 1,213,892,218
---------------------------------------------------------------------------------
Other Assets:
Cash 14,448,465 707,773 - 28,356,725 43,512,963
Other assets held for sale -
Intangible Assets (3) 46,915,709 9,041,888 55,957,597
Other Assets, Net (4) 53,567,903 469,242 10,392,821 11,210,443 75,640,409
---------------------------------------------------------------------------------
TOTAL OTHER ASSETS 114,932,077 1,177,015 10,392,821 48,609,056 175,110,969
---------------------------------------------------------------------------------
TOTAL ASSETS 1,309,510,462 1,177,015 28,506,654 49,809,056 1,389,003,187
=================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 717,818,358 - - - 717,818,358
Mortgage Debt Premium (5) 21,243,002 - - - 21,243,002
Bank Loans Payable - - - - -
Acquisition Term Loan & Unsecured Line of
Credit - - - - -
Construction Loans - - - - -
Liabilities Related to Assets held for sale - 951,750 - - 951,750
Other Liabilities (6) 27,237,935 - 2,696,156 12,458,923 42,393,014
---------------------------------------------------------------------------------
TOTAL LIABILITIES 766,299,295 951,750 2,696,156 12,458,923 782,406,124
---------------------------------------------------------------------------------
Minority Interest 5,991,467 - 58,270,123 64,261,590
---------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial Interest at $1 Par - - - 23,480,595 23,480,595
Preferred Shares $0.01 Par
Capital Contributed in Excess of Par - - - 407,738,529 407,738,529
Restricted Stock - - - (3,901,106) (3,901,106)
Other Comprehensive Income - - - (1,928,590) (1,928,590)
Retained Earnings (Distributions in Excess
of Net Income) - - - 116,946,045 116,946,045
---------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY - - - 542,335,473 542,335,473
---------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 772,290,762 $ 951,750 $ 2,696,156 $613,064,519 $1,389,003,187
=================================================================================
(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 September 30, 2004 and December 31, 2003
includes $8,102,171 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.
(3) Includes value of acquired in-place leases and above-market value of leases
recorded in connection with the acquisition of properties since 2002.
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 including Deficit JV Investments.
NOTE: RECONCILIATION TO GAAP IS ON PAGES 32 TO 35.
PAGE 6
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
INCOME STATEMENT(1)
QUARTERLY COMPARISON
(Wholly Owned vs. JV)
Q3 04
(3 MONTHS ENDED 9/30/04)
------------------------------------------------------------------------------------ -------
COMBINED TOTAL %
WHOLLY OWNED JVS CORPORATE TOTAL CHANGE
------------------------------------------------------------------------------------ -------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 65,449,814 $ 5,171,295 $ - 70,621,109 95.9%
Straight-Lining of Base Rents 1,269,053 853 - 1,269,906 65.9%
Percentage Rents 1,820,100 53,063 - 1,873,163 243.9%
Expense Reimbursables 32,088,954 1,335,661 33,424,615 113.0%
Lease Termination 1,690,536 - - 1,690,536 N/A
Other Real Estate Revenues 2,254,180 18,637 - 2,272,817 173.4%
------------------------------------------------------------------------------------ -------
TOTAL REVENUES 104,572,637 94% 6,579,509 6% $ - 0% 111,152,146 106.1%
------------------------------------------------------------------------------------ -------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 30,934,256 1,360,094 - 32,294,350 110.1%
Real Estate Taxes 9,283,616 710,170 - 9,993,786 79.2%
------------------------------------------------------------------------------------ -------
TOTAL EXPENSES 40,217,872 95% 2,070,264 5% - 0% 42,288,136 101.9%
------------------------------------------------------------------------------------ -------
NET OPERATING INCOME 64,354,765 93% 4,509,245 7% - 0% 68,864,010 108.8%
==================================================================================== =======
OTHER INCOME (EXPENSES)
Management Company Revenue - - 1,831,296 1,831,296 24.1%
Interest and Other Income - - 179,562 179,562 -17.3%
GENERAL & ADMINISTRATIVE:
Corporate Payroll and Benefits - - (7,335,945) (7,335,945) 71.6%
Other G&A Expenses - - (4,199,168) (4,199,168) 3.7%
------------------------------------------------------------------------------------ -------
EARNINGS BEFORE INTEREST
EXPENSES, TAXES, DEPRECIATION
AND AMORTIZATION 64,354,765 108% 4,509,245 8% (9,524,255) -16% 59,339,755 125.3%
==================================================================================== =======
Interest Expense (2)(3) (17,062,052) (2,010,883) (2,066,196) (21,139,131) 84.4%
Depreciation & Amortization (22,683,695) (1,002,577) - (23,686,272) 131.6%
------------------------------------------------------------------------------------ -------
TOTAL OTHER INCOME (EXPENSES) (39,745,747) (3,013,460) (2,066,196) (44,825,403) 106.6%
------------------------------------------------------------------------------------ -------
Gains (loss) on sales of
interests in Real Estate 1,529,183 - 1,529,183 N/A
------------------------------------------------------------------------------------ -------
Income before Minority Interest 24,609,018 3,024,968 (11,590,451) 16,043,535 47.5%
------------------------------------------------------------------------------------ -------
Minority Interest in Properties (53,268) - (53,268) N/A
Minority Interest of O.P.
Unitholders - - (1,525,300) (1,525,300) 54.2%
------------------------------------------------------------------------------------ -------
Income from Operations 24,555,750 3,024,968 (13,115,751) 14,464,967 51.0%
------------------------------------------------------------------------------------ -------
DISCONTINUED OPERATIONS:
Income from Disposed Real Estate - - N/A
Minority Interest of O.P.
Unitholders (197,095) (197,095) N/A
Gain (loss) on Disposition of
Discontinued Operations - - - N/A
------------------------------------------------------------------------------------ -------
TOTAL DISCONTINUED OPERATIONS - - (197,095) (197,095) N/A
------------------------------------------------------------------------------------ -------
Extraordinary item (Loss on
early extinguishment of debt) - - N/A
------------------------------------------------------------------------------------ -------
NET INCOME $ 24,555,750 172% $ 3,024,968 21% $(13,312,846) -93% $ 14,267,872 -59.1%
==================================================================================== =======
Q3 03
(3 MONTHS ENDED 9/30/03)
---------------------------------------------------------------------------------
COMBINED
WHOLLY OWNED JVS CORPORATE TOTAL
---------------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies) $ 29,575,266 $ 6,479,632 $ - $ 36,054,898
Straight-Lining of Base Rents 685,050 80,188 - 765,238
Percentage Rents 469,398 75,212 - 544,610
Expense Reimbursables 13,553,160 2,142,618 15,695,778
Lease Termination 29,393 - - 29,393
Other Real Estate Revenues 652,773 178,531 - 831,304
---------------------------------------------------------------------------------
TOTAL REVENUES 44,965,040 83% 8,956,181 17% $ - 0% 53,921,221
---------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 12,890,086 2,480,268 - 15,370,354
Real Estate Taxes 4,768,784 807,631 - 5,576,415
---------------------------------------------------------------------------------
TOTAL EXPENSES 17,658,870 84% 3,287,899 16% - 0% 20,946,769
---------------------------------------------------------------------------------
NET OPERATING INCOME 27,306,170 83% 5,668,282 17% - 0% 32,974,452
=================================================================================
OTHER INCOME (EXPENSES)
Management Company Revenue - - 1,475,135 1,475,135
Interest and Other Income - - 217,023 217,023
GENERAL & ADMINISTRATIVE:
Corporate Payroll and Benefits - - (4,274,156) (4,274,156)
Other G&A Expenses - - (4,049,052) (4,049,052)
---------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND AMORTIZATION 27,306,170 104% 5,668,282 22% (6,631,050) -25% 26,343,402
=================================================================================
Interest Expense (2)(3) (8,314,940) (3,150,646) - (11,465,586)
Depreciation & Amortization (9,191,800) (1,034,646) (10,226,446)
---------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (17,506,740) (4,185,292) - (21,692,032)
---------------------------------------------------------------------------------
Gains (loss) on sales of interests in Real
Estate - 6,228,839 - 6,228,839
---------------------------------------------------------------------------------
Income before Minority Interest 9,799,430 7,711,829 (6,631,050) 10,880,209
---------------------------------------------------------------------------------
Minority Interest in Properties (310,751) - - (310,751)
Minority Interest of O.P. Unitholders - - (989,253) (989,253)
---------------------------------------------------------------------------------
Income from Operations 9,488,679 7,711,829 (7,620,303) 9,580,205
---------------------------------------------------------------------------------
DISCONTINUED OPERATIONS:
Income from Disposed Real Estate - - -
Minority Interest of O.P. Unitholders (2,382,461) (2,382,461)
Gain (loss) on Disposition of Discontinued
Operations 27,725,759 27,725,759
---------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS 27,725,759 (2,382,461) 25,343,298
---------------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - - -
---------------------------------------------------------------------------------
NET INCOME $ 37,214,438 107% $ 7,711,829 22% $(10,002,764) -29% $ 34,923,503
=================================================================================
(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 of $418,715 is not included in the quarter
ended 9/30/04 and $324,187 is not included in the quarter ended 9/30/03.
(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
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Line of Business)
Q3 04
(3 MONTHS ENDED 9/30/04)
---------------------------------------------------------------------------------------------
OTHER COMBINED TOTAL %
RETAIL PROPERTIES CORPORATE TOTAL CHANGE
---------------------------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents $ 70,535,953 $ 85,156 $ - $ 70,621,109 95.5%
Less Vacancies and Concessions - - - N/A
Straight-Lining of Base Rents 1,269,906 - - 1,269,906 65.9%
Percentage Rents 1,873,163 - - 1,873,163 243.9%
Expense Reimbursables 33,411,645 12,970 33,424,615 113.0%
Lease Termination 1,690,536 - - 1,690,536 N/A
Other Real Estate Revenues 2,272,817 - - 2,272,817 173.4%
---------------------------------------------------------------------------------------------
TOTAL REVENUES 111,054,020 100% 98,126 0% - - 111,152,146 106.1%
---------------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 32,290,920 3,430 - 32,294,350 110.1%
Real Estate Taxes 9,983,666 10,120 - 9,993,786 79.2%
---------------------------------------------------------------------------------------------
TOTAL EXPENSES 42,274,586 100% 13,550 0% - - 42,288,136 101.9%
---------------------------------------------------------------------------------------------
NET OPERATING INCOME 68,779,434 100% 84,576 0% - - 68,864,010 108.8%
=============================================================================================
OTHER INCOME (EXPENSES)
Management Company Revenue - - 1,831,296 1,831,296 24.1%
Interest and Other Income - - 179,562 179,562 -17.3%
GENERAL AND ADMINISTRATIVE:
Corporate Payroll and Benefits - - (7,335,945) (7,335,945) 71.6%
Other General & Administrative - - (4,199,168) (4,199,168) 3.7%
---------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND
AMORTIZATION 68,779,434 116% 84,576 0% (9,524,255) -16% 59,339,755 125.3%
=============================================================================================
Interest Expense (2)(3) (19,072,935) - (2,066,196) (21,139,131) 84.4%
Depreciation & Amortization (23,673,732) (12,540) - (23,686,272) 131.6%
---------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (42,746,667) (12,540) (2,066,196) (44,825,403) 106.6%
---------------------------------------------------------------------------------------------
Gains (loss) on sales of interests
in Real Estate 1,529,183 - - 1,529,183 N/A
---------------------------------------------------------------------------------------------
Income before Minority Interest 27,561,950 72,036 (11,590,451) 16,043,535 47.5%
---------------------------------------------------------------------------------------------
Minority Interest in Properties (53,268) - (53,268)
---------------------------------------------------------------------------------------------
Minority Interest of O.P. Unitholders - - (1,523,300) (1,525,300) 54.2%
---------------------------------------------------------------------------------------------
Income from Operations 27,508,682 72,036 (13,115,751) 14,464,967 51.0%
---------------------------------------------------------------------------------------------
DISCONTINUED OPERATIONS:
Income from Disposed Real Estate - - - N/A
Minority Interest of O.P. Unitholders (197,095) (197,095) N/A
Gain (loss) on Disposition of
Discontinued Operations - - N/A
---------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - - (197,095) (197,095) N/A
---------------------------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - - - - N/A
---------------------------------------------------------------------------------------------
NET INCOME $ 27,508,682 193% $ 72,036 1% $(13,312,846) -93% $ 14,267,872 -59.1%
=============================================================================================
Q3 03
(3 MONTHS ENDED 9/30/03)
---------------------------------------------------------------------------------------------
OTHER COMBINED
RETAIL MULTIFAMILY PROPERTIES CORPORATE TOTAL
--------------------------------------------------------------------------------------------
REAL ESTATE OPERATING REVENUES
Base Rents $ 34,709,773 $ 1,336,316 $ 85,156 $ - $ 36,131,245
Less Vacancies and Concessions - (76,347) - - (76,347)
Straight-Lining of Base Rents 765,238 - - - 765,238
Percentage Rents 544,610 - - - 544,610
Expense Reimbursables 15,693,153 - 2,625 - 15,695,778
Lease Termination 27,129 2,264 - 29,393
Other Real Estate Revenues 761,961 69,343 - - 831,304
--------------------------------------------------------------------------------------------
TOTAL REVENUES 52,501,864 97% 1,331,576 2% 87,781 0% - - 53,921,221
---------------------------------------------------------------------------------------------
REAL ESTATE OPERATING EXPENSES
Operating and Maintenance 14,731,058 636,314 2,982 - 15,370,354
Real Estate Taxes 5,499,341 76,172 902 - 5,576,415
--------------------------------------------------------------------------------------------
TOTAL EXPENSES 20,230,399 97% 712,486 3% 3,884 0% - - 20,946,769
--------------------------------------------------------------------------------------------
NET OPERATING INCOME 32,271,465 98% 619,090 2% 83,897 0% - - 32,974,452
============================================================================================
OTHER INCOME (EXPENSES)
Management Company Revenue - - - 1,475,135 1,475,135
Interest and Other Income - - - 217,023 217,023
GENERAL AND ADMINISTRATIVE: - -
Corporate Payroll and Benefits - - - (4,274,156) (4,274,156)
Other General & Administrative - - - (4,049,052) (4,049,052)
--------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES,
TAXES, DEPRECIATION AND
AMORTIZATION 32,271,465 123% 619,090 2% 83,897 0% (6,631,050) -25% 26,343,402
============================================================================================
Interest Expense (2)(3) (11,243,044) (222,542) - - (11,465,586)
Depreciation & Amortization (10,213,658) - (12,788) - (10,226,446)
--------------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSES) (21,456,702) (222,542) (12,788) - (21,692,032)
--------------------------------------------------------------------------------------------
Gains (loss) on sales of interests
in Real Estate - 6,228,839 - 6,228,839
--------------------------------------------------------------------------------------------
Income before Minority Interest 10,814,763 6,625,387 71,109 (6,631,050) 10,880,209
--------------------------------------------------------------------------------------------
Minority Interest in Properties (310,751) (310,751)
--------------------------------------------------------------------------------------------
Minority Interest of O.P. Unitholders - - - (989,253) (989,253)
--------------------------------------------------------------------------------------------
Income from Operations 10,504,012 6,625,387 71,109 (7,620,303) 9,580,205
--------------------------------------------------------------------------------------------
DISCONTINUED OPERATIONS:
Income from Disposed Real Estate - - - -
Minority Interest of O.P. Unitholders - - - (2,382,461) (2,382,461)
Gain (loss) on Disposition of
Discontinued Operations - 27,725,759 - - 27,725,759
--------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - 27,725,759 - (2,382,461) 25,343,298
--------------------------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - - - - -
--------------------------------------------------------------------------------------------
NET INCOME $ 10,504,012 30% $34,351,146 98% $ 71,109 0% $(10,002,764) -29% $ 34,923,503
============================================================================================
(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 of $418,715 is not included in the quarter
ended 9/30/04 and $324,187 is not included in the quarter ended 9/30/03.
(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
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
RETAIL INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Property Status)
Q3 04
(3 MONTHS ENDED 9/30/04)
-----------------------------------------------------------------------------------------
COMBINED % CHANGE % CHANGE % CHANGE
TOTAL WO JVS TOTAL WO JVS
-----------------------------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 70,535,953 $ 65,364,658 $ 5,171,295 103.2% 128.9% -15.9%
Straight-Lining of Base Rents 1,269,906 1,269,053 853 65.9% 85.2% -98.9%
Percentage Rents 1,873,163 1,820,100 53,063 243.9% 287.8% -29.4%
Expense Reimbursables 33,411,645 32,075,984 1,335,661 112.9% 136.7% -37.7%
Lease Termination and Other Income 1,690,536 1,690,536 - N/A N/A N/A
Other Real Estate Revenues 2,272,817 2,254,180 18,637 198.3% 281.3% -89.1%
-----------------------------------------------------------------------------------------
TOTAL REVENUES 111,054,020 104,474,511 94% 6,579,509 6% 111.5% 138.1% -23.6%
-----------------------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 32,290,920 30,930,826 1,360,094 119.2% 148.7% -40.7%
Real Estate Taxes 9,983,666 9,273,496 710,170 81.5% 96.3% -8.2%
-----------------------------------------------------------------------------------------
Total Operating Expenses 42,274,586 40,204,322 95% 2,070,264 5% 109.0% 134.2% -32.5%
=========================================================================================
NET OPERATING INCOME 68,779,434 64,270,189 93% 4,509,245 7% 113.1% 140.5% -18.8%
=========================================================================================
OTHER INCOME (EXP.)
Interest Expense (19,072,935) (17,062,052) (2,010,883) 69.6% 109.5% -35.1%
Depreciation & Amortization (23,673,732) (22,671,155) (1,002,577) 131.8% 147.0% -3.1%
-----------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (42,746,667) (39,733,207) (3,013,460) 99.2% 129.4% -27.1%
-----------------------------------------------------------------------------------------
Gains (loss) on sales of int. in R.E 1,529,183 - 1,529,183 N/A N/A N/A
-----------------------------------------------------------------------------------------
Income before Minority Int. 27,561,950 24,536,982 3,024,968 154.9% 161.1% 113.3%
-----------------------------------------------------------------------------------------
Minority Interest in Properties (53,268) (53,268) -82.9% -82.9% N/A
-----------------------------------------------------------------------------------------
DISCONTINUED OPERATIONS: -
-----------------------------------------------------------------------------------------
Income from Disposed Real Estate - - N/A N/A N/A
-----------------------------------------------------------------------------------------
Gain (loss) 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 $ 27,508,682 $ 24,536,982 89% $ 3,024,968 11% 161.9% 170.1% 113.3%
=========================================================================================
(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.
Q3 03
(3 MONTHS ENDED 9/30/03)
--------------------------------------------------------
COMBINED
TOTAL WO JVS
--------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 34,709,773 $ 28,561,011 $ 6,148,762
Straight-Lining of Base Rents 765,238 685,050 80,188
Percentage Rents 544,610 469,398 75,212
Expense Reimbursables 15,693,153 13,550,535 2,142,618
Lease Termination and Other Income 27,129 27,129 -
Other Real Estate Revenues 761,961 591,246 170,715
--------------------------------------------------------
TOTAL REVENUES 52,501,864 43,884,369 84% 8,617,495 16%
--------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 14,731,058 12,437,946 2,293,112
Real Estate Taxes 5,499,341 4,725,346 773,995
--------------------------------------------------------
Total Operating Expenses 20,230,399 17,163,292 85% 3,067,107 15%
========================================================
NET OPERATING INCOME 32,271,465 26,721,077 83% 5,550,388 17%
========================================================
OTHER INCOME (EXP.)
Interest Expense (11,243,044) (8,145,244) (3,097,800)
Depreciation & Amortization (10,213,658) (9,179,012) (1,034,646)
--------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (21,456,702) (17,324,256) (4,132,446)
--------------------------------------------------------
Gains (loss) on sales of int. in R.E - - -
--------------------------------------------------------
Income before Minority Int. 10,814,763 9,396,821 1,417,942
--------------------------------------------------------
Minority Interest in Properties (310,751) (310,751) -
--------------------------------------------------------
DISCONTINUED OPERATIONS: -
--------------------------------------------------------
Income from Disposed Real Estate -
--------------------------------------------------------
Gain (loss) on Disposition of
Discontinued Operations
--------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - - -
--------------------------------------------------------
Extraordinary item (Loss on
early extinguishments of debt) - - -
--------------------------------------------------------
NET INCOME $ 10,504,012 $ 9,086,070 87% $ 1,417,942 13%
========================================================
SAME STORE COMPARISON
Q3 04
(3 MONTHS ENDED 9/30/04)
----------------------------------------------------------------------------
COMBINED
TOTAL SAME NEW REDEV
----------------------------------------------------------------------------
Base Rents $ 70,535,953 $ 30,490,740 $ 37,767,097 $ 2,202,072
Straight-Lining of Base Rents 1,269,906 328,156 930,658 12,129
Percentage Rents 1,873,163 438,987 1,307,831 126,345
Expense Reimbursables 33,411,645 14,441,445 17,438,279 1,508,529
Lease Termination 1,690,536 1,579,492 111,044 -
Other Real Estate Revenues 2,272,817 707,317 1,444,029 121,471
----------------------------------------------------------------------------
TOTAL REVENUES 111,054,020 47,986,137 43% 58,998,938 53% 3,970,546 4%
----------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 32,290,920 12,195,309 19,139,887 949,779
Real Estate Taxes 9,983,666 4,586,370 5,123,509 260,253
----------------------------------------------------------------------------
Total Operating Expenses 42,274,586 16,781,678 40% 24,263,395 57% 1,210,032 3%
============================================================================
NET OPERATING INCOME 68,779,434 31,204,459 45% 34,735,543 51% 2,760,514 4%
============================================================================
OTHER INCOME (EXP.)
Interest Expense (19,072,935) (8,406,114) (9,891,052) (775,769)
Depreciation & Amortization (23,673,732) (9,909,805) (13,291,311) (436,280)
----------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (42,746,667) (18,315,919) (23,182,363) (1,212,049)
----------------------------------------------------------------------------
Gain (loss) on sales of int. in R.E. 1,529,183 - - -
----------------------------------------------------------------------------
Income before Minority Int. 27,561,950 12,888,540 11,553,180 1,548,465
----------------------------------------------------------------------------
Minority Interest in Properties (53,268) (53,268)
DISCONTINUED OPERATIONS:
Income from Disposed Real Estate - - - -
Gain (loss) on Disposition of
Discontinued Operations - - - -
----------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - -
----------------------------------------------------------------------------
Extraordinary item (Loss on
early extinguishment of debt) - - - -
----------------------------------------------------------------------------
NET INCOME $ 27,508,682 $ 12,888,540 47% $ 11,499,912 42% $ 1,548,465 6%
============================================================================
------------------------------
% CHANGE
DIVEST SAME STORE
------------------------------
Base Rents $ 76,044 -0.8%
Straight-Lining of Base Rents (1,037) -52.0%
Percentage Rents - 1.1%
Expense Reimbursables 23,393 8.0%
Lease Termination - N/A
Other Real Estate Revenues - 49.5%
------------------------------
TOTAL REVENUES 98,400 0% 4.9%
------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 5,946 -2.7%
Real Estate Taxes 13,535 -9.2%
------------------------------
Total Operating Expenses 19,481 0% -4.6%
==============================
NET OPERATING INCOME 78,919 0% 10.8%
==============================
OTHER INCOME (EXP.)
Interest Expense - -9.3%
Depreciation & Amortization (36,337) 9.5%
------------------------------
TOTAL OTHER INCOME (EXP.) (36,337) -0.1%
------------------------------
Gain (loss) on sales of int. in R.E. 1,529,183 N/A
------------------------------
Income before Minority Int. 1,571,765 31.1%
------------------------------
Minority Interest in Properties
DISCONTINUED OPERATIONS:
Income from Disposed Real Estate - N/A
Gain (loss) on Disposition of
Discontinued Operations - N/A
------------------------------
TOTAL DISCONTINUED OPERATIONS N/A
------------------------------
Extraordinary item (Loss on
early extinguishment of debt) - N/A
------------------------------
NET INCOME $1,571,765 6% 35.4%
==============================
Q3 03
(3 MONTHS ENDED 9/30/03)
----------------------------------------------------------------------------------------
COMBINED
TOTAL SAME NEW REDEV DIVEST
----------------------------------------------------------------------------------------
Base Rents $ 34,709,773 $ 30,745,210 $ 1,749,382 $ 2,090,398 $ 124,783
Straight-Lining of Base Rents 765,238 683,469 41,133 42,395 (1,759)
Percentage Rents 544,610 434,415 (16,360) 126,555 -
Expense Reimbursables 15,693,153 13,375,916 1,324,243 937,843 55,151
Lease Termination 27,129 27,129 - - -
Other Real Estate Revenues 761,961 473,020 180,493 108,448 -
----------------------------------------------------------------------------------------
TOTAL REVENUES 52,501,864 45,739,159 87% 3,278,891 6% 3,305,639 6% 178,175
----------------------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 14,731,058 12,531,102 1,197,989 960,361 41,606
Real Estate Taxes 5,499,341 5,053,378 191,071 236,912 17,980
----------------------------------------------------------------------------------------
Total Operating Expenses 20,230,399 17,584,480 87% 1,389,060 7% 1,197,273 6% 59,586
========================================================================================
NET OPERATING INCOME 32,271,465 28,154,679 87% 1,889,831 6% 2,108,366 7% 118,589
========================================================================================
OTHER INCOME (EXP.)
Interest Expense (11,243,044) (9,273,022) (1,184,423) (785,599) -
Depreciation & Amortization (10,213,658) (9,053,941) (443,316) (659,919) (56,482)
----------------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (21,456,702) (18,326,963) (1,627,739) (1,445,518) (56,482)
----------------------------------------------------------------------------------------
Gain (loss) on sales of int. in R.E. - - -
----------------------------------------------------------------------------------------
Income before Minority Int. 10,814,763 9,827,716 262,092 662,848 62,107
----------------------------------------------------------------------------------------
Minority Interest in Properties (310,751) (310,751) - - -
DISCONTINUED OPERATIONS:
Income from Disposed Real Estate - - - -
Gain (loss) on Disposition of
Discontinued Operations
----------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - 62,107
----------------------------------------------------------------------------------------
Extraordinary item (Loss on
early extinguishment of debt) - - - - -
----------------------------------------------------------------------------------------
NET INCOME $ 10,504,012 $ 9,516,965 91% $ 262,092 2% $ 662,848 6% $ 62,107
========================================================================================
NOTE: RECONCILIATION TO GAAP IS ON PAGES 32 TO 35.
PAGE 9
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
RETAIL INCOME STATEMENT (1)
QUARTERLY COMPARISON
(Property Subtype)
Q3 04
(3 MONTHS ENDED 9/30/04)
--------------------------------------------------------------------------
COMBINED ENCLOSED POWER STRIP
TOTAL MALL CENTER CENTER
--------------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 70,535,953 $ 62,371,864 $ 6,626,030 $1,538,059
Straight-Lining of Base Rents 1,269,906 1,101,917 168,125 (136)
Percentage Rents 1,873,163 1,840,385 32,778 -
Expense Reimbursables 33,411,645 32,034,613 1,005,232 371,800
Lease Termination and Other Income 1,690,536 190,536 1,500,000 -
Other Real Estate Revenues 2,272,817 2,259,522 9,426 3,869
--------------------------------------------------------------------------
TOTAL REVENUES 111,054,020 99,798,837 90% 9,341,591 8% 1,913,592 2%
--------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 32,290,920 31,295,781 668,810 326,329
Real Estate Taxes 9,983,666 9,057,824 715,430 210,412
--------------------------------------------------------------------------
Total Operating Expenses 42,274,586 40,353,605 95% 1,384,240 3% 536,741 1%
==========================================================================
NET OPERATING INCOME 68,779,434 59,445,232 86% 7,957,351 12% 1,376,851 2%
==========================================================================
OTHER INCOME (EXP.)
Interest Expense (19,072,935) (17,418,870) (1,617,897) (36,168)
Depreciation & Amortization (23,673,732) (21,067,670) (2,099,910) (506,152)
--------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (42,746,667) (38,486,540) (3,717,807) (542,320)
--------------------------------------------------------------------------
Gains (loss) on sales of int. in R.E. 1,529,183 - - 1,529,183
--------------------------------------------------------------------------
Income before Minority Int. 27,561,950 20,958,692 4,239,544 2,363,714
--------------------------------------------------------------------------
Minority Interest in Properties (53,268) (53,268) - -
--------------------------------------------------------------------------
DISCONTINUED OPERATIONS:
--------------------------------------------------------------------------
Income from Disposed Real Estate - - -
--------------------------------------------------------------------------
Gain (loss) on Disposition of
Discontinued Operations -
--------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - - - -
--------------------------------------------------------------------------
Extraordinary item (Loss on
early extinguishment of debt) - - - -
--------------------------------------------------------------------------
NET INCOME $ 27,508,682 $ 20,905,424 76% $ 4,239,544 15% $2,363,714 9%
==========================================================================
------------------------------------------------------
% CHANGE % CHANGE % CHANGE % CHANGE
TOTAL ENCLOSED MALL POWER CENTER STRIP CENTER
------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents 103.2% 134.6% 0.7% -0.5%
Straight-Lining of Base Rents 65.9% 90.8% 3.4% -100.5%
Percentage Rents 243.9% 280.3% -46.0% N/A
Expense Reimbursables 112.9% 127.5% -13.4% -17.8%
Lease Termination and Other Income N/A N/A N/A N/A
Other Real Estate Revenues 198.3% 207.6% -60.4% 5.7%
------------------------------------------------------
TOTAL REVENUES 111.5% 134.9% 17.0% -5.6%
------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 119.2% 129.0% -11.9% 5.9%
Real Estate Taxes 81.5% 97.8% -0.6% 5.6%
------------------------------------------------------
Total Operating Expenses 109.0% 121.2% -6.4% 5.8%
======================================================
NET OPERATING INCOME 113.1% 145.2% 22.3% -9.4%
======================================================
OTHER INCOME (EXP.)
Interest Expense 69.6% 102.3% -37.7% -3.1%
Depreciation & Amortization 131.8% 168.0% 9.4% 16.8%
------------------------------------------------------
TOTAL OTHER INCOME (EXP.) 99.2% 133.7% -17.6% 15.2%
------------------------------------------------------
Gains (loss) on sales of int. in R.E. N/A N/A N/A N/A
------------------------------------------------------
Income before Minority Int. 154.9% 169.7% 112.6% 125.3%
------------------------------------------------------
Minority Interest in Properties -82.9% -82.9% N/A N/A
------------------------------------------------------
DISCONTINUED OPERATIONS:
------------------------------------------------------
Income from Disposed Real Estate N/A N/A N/A N/A
------------------------------------------------------
Gain (loss) 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 161.9% 180.2% 112.6% 125.3%
======================================================
Q3 03
(3 MONTHS ENDED 9/30/03)
--------------------------------------------------------------------------
COMBINED ENCLOSED POWER STRIP
TOTAL MALL CENTER CENTER
--------------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 34,709,773 $ 26,583,847 $ 6,579,724 $1,546,202
Straight-Lining of Base Rents 765,238 577,623 162,538 25,077
Percentage Rents 544,610 483,902 60,708 -
Expense Reimbursables 15,693,153 14,080,371 1,160,230 452,552
Lease Termination and Other Income 27,129 27,129 - -
Other Real Estate Revenues 761,961 734,498 23,801 3,662
--------------------------------------------------------------------------
TOTAL REVENUES 52,501,864 42,487,370 81% 7,987,001 15% 2,027,493 4%
--------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 14,731,058 13,664,046 758,724 308,288
Real Estate Taxes 5,499,341 4,580,098 719,987 199,256
--------------------------------------------------------------------------
Total Operating Expenses 20,230,399 18,244,144 90% 1,478,711 7% 507,544 3%
==========================================================================
NET OPERATING INCOME 32,271,465 24,243,226 75% 6,508,290 20% 1,519,949 5%
==========================================================================
OTHER INCOME (EXP.)
Interest Expense (11,243,044) (8,610,780) (2,594,953) (37,311)
Depreciation & Amortization (10,213,658) (7,860,605) (1,919,598) (433,455)
--------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (21,456,702) (16,471,385) (4,514,551) (470,766)
--------------------------------------------------------------------------
Gains (loss) on sales of int. in R.E. - - - -
--------------------------------------------------------------------------
Income before Minority Int. 10,814,763 7,771,841 1,993,739 1,049,183
--------------------------------------------------------------------------
Minority Interest in Properties (310,751) (310,751) - -
--------------------------------------------------------------------------
DISCONTINUED OPERATIONS:
--------------------------------------------------------------------------
Income from Disposed Real Estate - - -
--------------------------------------------------------------------------
Gain (loss) on Disposition of
Discontinued Operations
--------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - - - -
--------------------------------------------------------------------------
Extraordinary item (Loss on
early extinguishment of debt) - - - -
--------------------------------------------------------------------------
NET INCOME $ 10,504,012 $ 7,461,090 71% $ 1,993,739 19% $1,049,183 10%
==========================================================================
SAME STORE COMPARISON
Q3 04
(3 MONTHS ENDED 9/30/04)
-------------------------------------------------------------------------
COMBINED ENCLOSED POWER STRIP
TOTAL MALL CENTER CENTER
-------------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 30,490,740 $ 22,402,695 $ 6,626,030 $1,462,015
Straight-Lining of Base Rents 328,156 159,130 168,125 901
Percentage Rents 438,987 406,209 32,778 -
Expense Reimbursables 14,441,445 13,087,806 1,005,232 348,407
Lease Termination 1,579,492 79,492 1,500,000 -
Other Real Estate Revenues 707,317 694,022 9,426 3,869
-------------------------------------------------------------------------
TOTAL REVENUES 47,986,137 36,829,354 77% 9,341,591 19% 1,815,192 4%
-------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 12,195,309 11,206,116 668,810 320,383
Real Estate Taxes 4,586,370 3,674,063 715,430 196,877
-------------------------------------------------------------------------
Total Operating Expenses 16,781,678 14,880,178 89% 1,384,240 8% 517,260 3%
=========================================================================
NET OPERATING INCOME 31,204,459 21,949,176 70% 7,957,351 26% 1,297,932 4%
=========================================================================
OTHER INCOME (EXP.)
Interest Expense (8,406,114) (6,752,049) (1,617,897) (36,168)
Depreciation & Amortization (9,909,805) (7,340,080) (2,099,910) (469,815)
-------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (18,315,919) (14,092,129) (3,717,807) (505,983)
-------------------------------------------------------------------------
Gain (loss) on sales of int. in R.E - - - -
-------------------------------------------------------------------------
Income before Minority Int. 12,888,540 7,857,047 4,239,544 791,949
-------------------------------------------------------------------------
Minority Interest in Properties - - - -
-------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - - - -
-------------------------------------------------------------------------
NET INCOME $ 12,888,540 $ 7,857,047 61% $ 4,239,544 33% $ 791,949 6%
=========================================================================
--------------------------------------------------------
% CHANGE % CHANGE % CHANGE % CHANGE
TOTAL (1) ENCLOSED MALL POWER CENTER STRIP CENTER
--------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents -0.8% -1.5% 0.7% 2.9%
Straight-Lining of Base Rents -52.0% -67.8% 3.4% -96.6%
Percentage Rents 1.1% 8.7% -46.0% N/A
Expense Reimbursables 8.0% 10.7% -13.4% -12.3%
Lease Termination N/A N/A N/A N/A
Other Real Estate Revenues 49.5% 55.8% -60.4% 5.7%
--------------------------------------------------------
TOTAL REVENUES 4.9% 2.6% 17.0% -1.8%
--------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance -2.7% -2.6% -11.9% 20.1%
Real Estate Taxes -9.2% -11.5% -0.6% 8.6%
--------------------------------------------------------
Total Operating Expenses -4.6% -5.0% -6.4% 15.5%
========================================================
NET OPERATING INCOME 10.8% 8.4% 22.3% -7.4%
========================================================
OTHER INCOME (EXP.)
Interest Expense -9.3% 1.4% -37.2% -3.1%
Depreciation & Amortization 9.5% 8.6% 9.4% 24.6%
--------------------------------------------------------
TOTAL OTHER INCOME (EXP.) -0.1% 5.0% -17.3% 22.1%
--------------------------------------------------------
Gain (loss) on sales of int. in R.E N/A N/A N/A N/A
--------------------------------------------------------
Income before Minority Int. 35.4% 20.6% 110.5% -19.8%
--------------------------------------------------------
Minority Interest in Properties
--------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt)
--------------------------------------------------------
NET INCOME 35.4% 20.6% 110.5% -19.8%
========================================================
Q3 03
(3 MONTHS ENDED 9/30/03)
---------------------------------------------------------------------------
COMBINED ENCLOSED POWER STRIP
TOTAL MALL CENTER CENTER
---------------------------------------------------------------------------
R.E. OPERATING REVENUES
Base Rents $ 30,745,210 $ 22,744,067 $ 6,579,724 $1,421,419
Straight-Lining of Base Rents 683,469 494,095 162,538 26,836
Percentage Rents 434,415 373,707 60,708 -
Expense Reimbursables 13,375,916 11,818,285 1,160,230 397,401
Lease Termination 27,129 27,129 - -
Other Real Estate Revenues 473,020 445,557 23,801 3,662
---------------------------------------------------------------------------
TOTAL REVENUES 45,739,159 35,902,840 78% 7,987,001 17% 1,849,318 4%
---------------------------------------------------------------------------
R.E. OPERATING EXPENSES
Operating and Maintenance 12,531,102 11,505,696 758,724 266,682
Real Estate Taxes 5,053,378 4,152,115 719,987 181,276
---------------------------------------------------------------------------
Total Operating Expenses 17,584,480 15,657,811 89% 1,478,711 8% 447,958 3%
===========================================================================
NET OPERATING INCOME 28,154,679 20,245,029 72% 6,508,290 23% 1,401,360 5%
===========================================================================
OTHER INCOME (EXP.)
Interest Expense (9,273,022) (6,660,803) (2,574,908) (37,311)
Depreciation & Amortization (9,053,941) (6,757,370) (1,919,598) (376,973)
---------------------------------------------------------------------------
TOTAL OTHER INCOME (EXP.) (18,326,963) (13,418,173) (4,494,506) (414,284)
---------------------------------------------------------------------------
(310,751) (310,751) - -
Gain (loss) on sales of int. in R.E - - - -
---------------------------------------------------------------------------
Income before Minority Int. 9,516,965 6,516,105 2,013,784 987,076
---------------------------------------------------------------------------
Minority Interest in Properties
---------------------------------------------------------------------------
Extraordinary item (Loss on early
extinguishment of debt) - - -
---------------------------------------------------------------------------
NET INCOME $ 9,516,965 $ 6,516,105 68% $ 2,013,784 21% $ 987,076 10%
===========================================================================
(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.
PAGE 10
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
FUNDS FROM OPERATIONS (1) Q3:9/30/04 % CHANGE Q3:9/30/03
------------ -------- ------------
NET INCOME $ 14,267,872 -59.1% $ 34,923,503
Dividends on preferred shares (3,403,125) -
------------ ------------
NET INCOME ALLOCABLE TO COMMON SHAREHOLDERS $ 10,864,747 -68.9% $ 34,923,503
Minority Interest in Operating Partnership-continuing operations 1,525,300 54.2% 989,253
Minority Interest in Operating Partnership-discontinued operations 197,095 N/A 2,382,461
(Gain) losses on sales of interests in real estate (1,529,183) N/A (6,228,839)
(Gain) losses on disposition of discontinued operations - N/A (27,725,759)
Depreciation & Amortization: (2)
Wholly owned and consolidated partnerships 22,561,595 147.2% 9,126,800
Unconsolidated partnerships and joint ventures 1,002,577 -3.1% 1,034,646
Discontinued operations - N/A -
------------ -------- ------------
FFO $ 34,622,131 138.7% $ 14,502,065
------------ -------- ------------
Weighted Average Shares and O.P. Units Outstanding 40,131,231 86.3% 21,537,479
------------ -------- ------------
NET INCOME PER SHARE (BASIC) $ 0.30 -83.0% $ 1.79
------------ -------- ------------
FFO PER SHARE $ 0.86 28.1% $ 0.67
------------ -------- ------------
FUNDS AVAILABLE FOR DISTRIBUTION
FFO $ 34,622,131 138.7% $ 14,502,065
Adjustments:
Straight-lining of base rents (1,269,906) 65.9% (765,238)
Recurring capital expenditures (2,812,227) 1117.0% (231,073)
Tenant allowances (1,349,309) N/A (591,471)
Amortization of debt premium (4,829,622) 177.2% (1,742,283)
Amortization of above-and below- market lease intangibles 184,590 -22.2% 237,319
------------ -------- ------------
FAD $ 24,545,657 115.1% $ 11,409,319
------------ -------- ------------
Weighted Average Shares and O.P. Units Outstanding 40,131,231 86.3% 21,537,479
------------ -------- ------------
FAD PER SHARE $ 0.61 15.5% $ 0.53
------------ -------- ------------
PAYOUT RATIOS
DIVIDEND PER COMMON SHARE $ 0.54 5.9% $ 0.51
------------ -------- ------------
PAYOUT RATIO OF NET INCOME PER SHARE (BASIC) 177.4% 149.0% 28.5%
============ ======== ============
PAYOUT RATIO OF FFO 62.6% -13.1% 75.7%
============ ======== ============
PAYOUT RATIO OF FAD 88.3% -8.0% 96.3%
------------ -------- ------------
(1) Certain prior period amounts have been reclassified to conform with the
current period's presentation.
(2) Excludes depreciation of non-real estate assets and amortization of
deferred financing costs.
PAGE 11
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
KEY RATIOS
- --------------------------------------------------------------------------------
Q3: 9/30/2004 Q3: 9/30/2003
------------- -------------
COVERAGE RATIO (1)
Interest Coverage Ratio (EBITDA/Interest Expense) 2.81 2.30
- --------------------------------------------------------------------------------
LEVERAGE RATIOS (1)
Debt / Total Market Capitalization 46.6% 46.4%
- --------------------------------------------------------------------------------
OPERATING RATIOS (1)
NOI/Real Estate Revenues 62.0% 61.2%
- --------------------------------------------------------------------------------
RETURN ON INVESTMENT RATIOS (1)
Total FFO/Equity Market Capitalization,
net of preferred shares 2.2% 1.7%
FFO multiple (Closing share price /
Annualized FFO per share for quarter) (2) 11.20 12.42
NOI/Total Market Capitalization at Period End 2.2% 2.1%
NOI/Investment in Real Estate at Period End 2.7% 2.5%
- --------------------------------------------------------------------------------
PAYOUT RATIOS
FFO Payout Ratio (Dividend/FFO) per Share 62.6% 75.7%
FAD Payout Ratio (Dividend/FAD) per Share 88.3% 96.3%
- --------------------------------------------------------------------------------
(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.
PAGE 12
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
DEBT SCHEDULE OF WHOLLY OWNED PROPERTIES
PREIT'S TOTAL PREIT'S PREIT'S PREIT'S
OWNERSHIP INVESTMENT INVESTMENT ACCUMULATED DEPRECIATED
PROPERTY NAME INTEREST TO DATE TO DATE (1) DEPRECIATION COSTS
RETAIL PROPERTIES
Beaver Valley Mall 100% $ 55,972,159 $ 55,972,159 $ 3,891,805 $ 52,080,354
Capital City (2) 100% 80,894,855 80,894,855 1,853,156 79,041,699
Chambersburg Mall (2)(3) 89% 34,312,829 34,312,829 831,687 33,481,142
Cherry Hill Mall (4) 100% 203,720,555 203,235,636 7,014,654 196,220,982
Christiana Power I 100% 39,870,034 39,870,034 5,216,670 34,653,364
Creekview 100% 19,076,247 19,076,247 2,628,348 16,447,899
Crest Plaza Shopping Center 100% 16,735,027 16,735,027 1,652,402 15,082,625
Crossroads Mall 100% 31,497,738 31,497,738 933,828 30,563,910
Dartmouth Mall 100% 54,803,660 54,803,660 10,625,859 44,177,801
Echelon Mall 100% 16,561,595 16,561,595 1,662,195 14,899,400
Exton Square Mall (4) 100% 142,919,433 142,919,433 5,465,755 137,453,678
Festival at Exton 100% 18,983,896 18,983,896 2,458,056 16,525,840
Francis Scott Key Mall (3) 89% 60,736,693 60,736,693 1,443,503 59,293,190
Jacksonville Mall (3) 100% 66,049,860 66,049,860 1,664,327 64,385,533
Logan Valley Mall (2)(3) 100% 90,884,823 90,884,823 2,155,944 88,728,879
Lycoming Mall (2)(3) 89% 55,153,561 55,153,561 1,297,766 53,855,795
Magnolia Mall 100% 57,731,701 57,731,701 8,844,860 48,886,841
Moorestown Mall 100% 75,122,895 75,122,895 4,335,310 70,787,585
New River Valley Mall (3) 89% 30,125,727 30,125,727 756,082 29,369,645
Nittany Mall (2)(3) 89% 38,077,289 38,077,289 877,183 37,200,106
North Hanover Mall (2)(3) 89% 28,172,198 28,172,198 716,241 27,455,957
Northeast Tower Center (3) 100% 31,033,171 31,033,171 3,213,078 27,820,093
Northeast Tower Center-Home Depot 100% 13,578,891 13,578,891 1,493,678 12,085,213
Palmer Park Mall 100% 32,309,149 32,309,149 6,436,612 25,872,537
Patrick Henry Mall (3) 89% 106,388,325 106,388,325 2,370,924 104,017,401
Paxton Towne Centre 100% 53,474,759 53,474,759 5,627,477 47,847,282
Phillipsburg Mall (3) 89% 48,663,468 48,663,468 1,184,322 47,479,146
Plymouth Meeting Mall 100% 78,779,367 78,779,367 3,456,588 75,322,779
Schuylkill Mall (2) 100% 8,102,166 8,102,166 - 8,102,166
South Blanding Village 100% 9,502,950 9,502,950 3,343,955 6,158,995
South Mall (2)(3) 89% 26,985,114 26,985,114 670,197 26,314,917
The Commons at Magnolia 100% 9,888,963 9,888,963 1,266,465 8,622,498
The Gallery at Market East I 100% 48,337,428 48,337,428 1,816,438 46,520,990
The Gallery at Market East II 100% 28,032,418 28,032,418 296,455 27,735,963
The Mall at Prince Georges (4) 100% 92,206,946 92,206,946 12,041,942 80,165,004
Uniontown Mall (2)(3) 89% 34,050,853 34,050,853 908,002 33,142,851
Valley Mall 100% 85,412,057 85,412,057 2,395,476 83,016,581
Valley View Mall 100% 59,671,972 59,671,972 1,356,549 58,315,423
Viewmont Mall (2)(3) 89% 76,191,571 76,191,571 1,650,431 74,541,140
Washington Crown Center (2) 89% 42,394,465 42,394,465 1,670,837 40,723,628
Willow Grove Park 100% 172,111,078 172,111,078 10,222,958 161,888,120
Wiregrass Mall (4) 100% 37,230,141 37,230,141 979,361 36,250,780
Wyoming Valley Mall (2)(3) 100% 90,128,607 90,128,607 1,977,878 88,150,729
Westgate Anchor Pad 100% 2,920,710 2,920,710 - 2,920,710
Land held for development 100% 9,542,722 9,542,722 9,542,722
- ------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL RETAIL PROPERTIES $2,414,340,066 $2,413,855,147 $130,705,254 $2,283,149,893
- ------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PROPERTIES
ARA Services, Allentown, PA 100% $ 84,610 $ 84,610 $ 81,610 $ 3,000
ARA Services, Pennsauken, NJ 100% 210,473 210,473 170,104 40,369
Interstate Container Corporation 100% 1,802,271 1,802,271 1,513,003 289,268
Sears Roebuck & Co. 100% 406,857 406,857 349,674 57,183
- ------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL INDUSTRIAL AND LAND PROPERTIES $ 2,504,211 $ 2,504,211 $ 2,114,391 $ 389,820
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR WHOLLY OWNED PROPERTIES $2,416,844,277 $2,416,359,358 $132,819,645 $2,283,539,713
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR PARTNERSHIPS and JOINT VENTURES $ 269,517,131 $ 133,122,396 $ 31,124,661 $ 101,997,735
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
CORPORATE/LINE OF CREDIT
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR WHOLLY OWNED AND JV PROPERTIES $2,686,361,408 $2,549,481,754 $163,944,306 $2,385,537,448
- ------------------------------------------------------------------------------------------------------------------------------
CURRENT
PREIT'S SHARE OF PREIT'S SHARE MORTGAGES
O/S MORTGAGE DEBT AND PREIT'S SHARE OF MORTGAGE INTEREST
PROPERTY NAME MORTGAGE DEBT PREMUIM OF MORTGAGE DEBT PREMIUM RATE
RETAIL PROPERTIES
Beaver Valley Mall $ 46,988,870 $ 46,988,870 $ - 7.36%
Capital City (2) 59,262,226 52,909,005 6,353,221 7.61%
Chambersburg Mall (2)(3) 20,450,457 18,812,478 1,637,979 7.43%
Cherry Hill Mall (4) 75,445,480 71,706,688 3,738,792 10.60%
59,104,477 59,104,477 - 5.00%
Christiana Power I - - - 0.00%
Creekview - - - 0.00%
Crest Plaza Shopping Center - - - 0.00%
Crossroads Mall 14,180,251 13,440,070 740,181 7.39%
Dartmouth Mall 68,767,700 68,767,700 - 4.95%
Echelon Mall - - - 0.00%
Exton Square Mall (4) 105,727,050 98,839,982 6,887,068 6.95%
Festival at Exton - - - 0.00%
Francis Scott Key Mall (3) 35,788,299 32,921,837 2,866,462 7.43%
Jacksonville Mall (3) 27,608,118 25,396,846 2,211,272 7.43%
Logan Valley Mall (2)(3) 58,283,802 53,615,562 4,668,240 7.43%
Lycoming Mall (2)(3) 35,788,300 32,921,837 2,866,463 7.43%
Magnolia Mall 20,116,945 20,116,945 - 8.20%
Moorestown Mall 63,118,924 63,118,924 - 4.95%
New River Valley Mall (3) 17,382,889 15,990,607 1,392,282 7.43%
Nittany Mall (2)(3) 30,675,686 28,218,718 2,456,968 7.43%
North Hanover Mall (2)(3) 20,450,457 18,812,478 1,637,979 7.43%
Northeast Tower Center (3) 17,894,150 16,460,919 1,433,231 7.43%
Northeast Tower Center-Home Depot 12,500,000 12,500,000 - 7.40%
Palmer Park Mall 17,885,194 17,885,194 - 6.77%
Patrick Henry Mall (3) 51,637,406 47,501,508 4,135,898 7.43%
Paxton Towne Centre - - - 0.00%
Phillipsburg Mall (3) 30,675,686 28,218,718 2,456,968 7.43%
Plymouth Meeting Mall - - - 0.00%
Schuylkill Mall (2) 17,228,605 17,228,605 - 7.25%
South Blanding Village - - - 0.00%
South Mall (2)(3) 15,337,843 14,109,359 1,228,484 7.43%
The Commons at Magnolia - - - 0.00%
The Gallery at Market East I - - - 0.00%
The Gallery at Market East II - - - 0.00%
The Mall at Prince Georges (4) 43,090,253 41,472,631 1,617,622 8.70%
Uniontown Mall (2)(3) 24,540,548 22,574,974 1,965,574 7.43%
Valley Mall - - - 0.00%
Valley View Mall 37,606,690 37,000,000 606,690 6.15%
Viewmont Mall (2)(3) 30,675,686 28,218,718 2,456,968 7.43%
Washington Crown Center (2) - - - 0.00%
Willow Grove Park 111,539,363 108,620,126 2,919,237 8.39%
Wiregrass Mall (4) 30,000,000 30,000,000 - 3.65%
Wyoming Valley Mall (2)(3) 58,283,803 53,615,563 4,668,240 7.43%
Westgate Anchor Pad - - - 0.00%
Land held for development - - - 0.00%
- ---------------------------------------------------------------------------------------------------------------------
SUB-TOTAL RETAIL PROPERTIES $1,258,035,158 $1,197,089,339 $60,945,819 7.20%
- ---------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PROPERTIES
ARA Services, Allentown, PA $ - $ - $ - 0.00%
ARA Services, Pennsauken, NJ - - - 0.00%
Interstate Container Corporation - - - 0.00%
Sears Roebuck & Co. - - - 0.00%
- ---------------------------------------------------------------------------------------------------------------------
SUB-TOTAL INDUSTRIAL AND LAND PROPERTIES $ - $ - $ - 0.00%
- ---------------------------------------------------------------------------------------------------------------------
TOTAL FOR WHOLLY OWNED PROPERTIES $1,258,035,158 $1,197,089,339 $60,945,819 7.20%
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $ 108,055,084 $ 108,055,084 $ - 7.47%
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
CORPORATE/LINE OF CREDIT $ 112,000,000 $ 112,000,000 $ -
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
TOTAL FOR WHOLLY OWNED AND JV PROPERTIES $1,478,090,242 $1,417,144,423 $60,945,819 7.22%
- ---------------------------------------------------------------------------------------------------------------------
ANNUAL MORTGAGE
MORTGAGE DEBT BALANCE AT DATE OF
PROPERTY NAME SERVICE MATURITY MATURITY NOTES
RETAIL PROPERTIES
Beaver Valley Mall $ 3,972,402 $ 42,265,601 2012
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) 9,132,792 70,237,549 2005
3,889,582 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 (4) 8,102,242 93,034,212 2008
Festival at Exton - -
Francis Scott Key Mall (3) 3,084,665 30,098,771 2008
Jacksonville Mall (3) 2,379,598 23,219,052 2008
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
Moorestown Mall 4,115,367 52,863,321 2013
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 (3) 1,542,332 15,049,385 2008
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 - - -
Schuylkill Mall (2) 3,315,300 7,442,925 2008
South Blanding Village - - -
South Mall (2)(3) 1,321,999 12,899,473 2008
The Commons at Magnolia - - -
The Gallery at Market East I - - -
The Gallery at Market East II - - -
The Mall at Prince Georges (4) 4,134,937 39,986,536 2007
Uniontown Mall (2)(3) 2,115,199 20,639,157 2008
Valley Mall - - -
Valley View Mall 2,275,500 34,094,549 2009
Viewmont Mall (2)(3) 2,643,998 25,798,946 2008
Washington Crown Center (2) - - -
Willow Grove Park 10,046,933 107,307,726 2006
Wiregrass Mall (4) 967,200 30,000,000 2005
Wyoming Valley Mall (2)(3) 5,023,597 49,017,998 2008
Westgate Anchor Pad - - -
Land held for development - - -
- ----------------------------------------------------------------------------------------------------
SUB-TOTAL RETAIL PROPERTIES $106,395,474 $1,098,677,734
- ----------------------------------------------------------------------------------------------------
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 $106,395,474 $1,098,677,734
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $ 10,205,588 $ 93,753,089
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
CORPORATE/LINE OF CREDIT
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
TOTAL FOR WHOLLY OWNED AND JV PROPERTIES $116,601,062 $1,192,430,823
- ----------------------------------------------------------------------------------------------------
(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) Mortgage term does not include two 12 month extensions.
PAGE 13
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
DEBT SCHEDULE OF PARTNERSHIPS AND JOINT VENTURES
PREIT'S TOTAL PREIT'S PREIT'S PREIT'S
OWNERSHIP INVESTMENT INVESTMENT TO ACCUMULATED DEPRECIATED
PROPERTY NAME INTEREST TO DATE DATE (1) DEPRECIATION COSTS
RETAIL PROPERTIES
Court at Oxford Valley 50% $ 55,612,768 $ 27,806,384 $ 4,468,041 $ 23,338,343
Laurel Mall 40% 31,423,473 12,569,389 4,897,068 7,672,321
Lehigh Valley Mall 50% 30,709,652 15,354,826 9,620,895 5,733,931
Metroplex Shopping Center (Blue Route) 50% 84,759,060 42,379,530 4,239,103 38,140,427
Red Rose Commons 50% 23,879,218 11,939,609 1,512,128 10,427,481
Springfield Park I&II 50% 13,291,878 6,645,939 666,605 5,979,334
Whitehall Mall 50% 29,841,082 14,920,541 5,720,821 9,199,720
- -------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL RETAIL PROPERTIES $269,517,131 $131,616,218 $31,124,661 $100,491,557
- -------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION IN PROGRESS/DEVELOPMENT
Pavilion at Market East 50% N/A $ 1,506,178 - $ 1,506,178
- -------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL PROPERTIES UNDER DEVELOPMENT $ - $ 1,506,178 $ - $ 1,506,178
- -------------------------------------------------------------------------------------------------------------------------
TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $269,517,131 $133,122,396 $31,124,661 $101,997,735
=========================================================================================================================
CURRENT
PREIT'S SHARE OF PREIT'S SHARE MORTGAGES
O/S MORTGAGE DEBT AND PREIT'S SHARE OF MORTGAGE INTEREST
PROPERTY NAME MORTGAGE DEBT PREMUIM OF MORTGAGE DEBT PREMIUM RATE
RETAIL PROPERTIES
Court at Oxford Valley $ 21,389,965 $ 21,389,965 $- 8.02%
Laurel Mall 9,122,244 9,122,244 - 6.00%
Lehigh Valley Mall 23,208,503 23,208,503 - 7.90%
Metroplex Shopping Center (Blue Route) 31,895,616 31,895,616 - 7.25%
Red Rose Commons 13,684,149 13,684,149 - 7.66%
Springfield Park I&II 1,804,591 1,804,591 - 7.79%
Whitehall Mall 6,950,016 6,950,016 - 6.77%
- --------------------------------------------------------------------------------------------------------------------
SUB-TOTAL RETAIL PROPERTIES $108,055,084 $108,055,084 $- 7.47%
- --------------------------------------------------------------------------------------------------------------------
CONSTRUCTION IN PROGRESS/DEVELOPMENT
Pavilion at Market East - $ - $- 0.00%
- --------------------------------------------------------------------------------------------------------------------
SUB-TOTAL PROPERTIES UNDER DEVELOPMENT $ - $ - $- $ -
- --------------------------------------------------------------------------------------------------------------------
TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $108,055,084 $108,055,084 $- 7.47%
====================================================================================================================
ANNUAL MORTGAGE
MORTGAGE DEBT BALANCE AT DATE OF
PROPERTY NAME SERVICE MATURITY MATURITY NOTES
RETAIL PROPERTIES
Court at Oxford Valley $ 2,319,426 $15,966,965 2011
Laurel Mall 661,904 7,819,521 2013
Lehigh Valley Mall 2,479,260 21,750,440 2006
Metroplex Shopping Center (Blue Route) 2,680,953 28,250,000 2011
Red Rose Commons 1,220,048 12,425,422 2009
Springfield Park I&II 202,561 1,411,804 2010
Whitehall Mall 641,436 6,128,937 2008
- -------------------------------------------------------------------------------------------------
SUB-TOTAL RETAIL PROPERTIES $10,205,588 $93,753,089
- -------------------------------------------------------------------------------------------------
CONSTRUCTION IN PROGRESS/DEVELOPMENT
Pavilion at Market East - -
- -------------------------------------------------------------------------------------------------
SUB-TOTAL PROPERTIES UNDER DEVELOPMENT $ - $ -
- -------------------------------------------------------------------------------------------------
TOTAL FOR PARTNERSHIPS AND JOINT VENTURES $10,205,588 $93,753,089
=================================================================================================
(1) Includes development and CIP costs.
PAGE 14
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
DEBT ANALYSIS
- -----------------------------------------------------------------------------------------------------------------------
OUTSTANDING DEBT (1)
% OF TOTAL % OF TOTAL
FIXED RATE INDEBTEDNESS FLOATING RATE INDEBTEDNESS
WHOLLY OWNED
Mortgage Notes Payable $1,228,035,158 83.1% $ 30,000,000 2.0%
Revolving Line of Credit - 0.0% - 0.0%
SUB-TOTAL 1,228,035,158 83.1% 30,000,000 2.0%
PARTNERSHIPS AND JOINT VENTURES (AT PREIT'S SHARE)
Mortgage Notes Payable 108,055,084 7.3% - 0.0%
Revolving Line of Credit - 0.0% - 0.0%
Construction loans payable - 0.0% - 0.0%
-------------- ------------
SUB-TOTAL 108,055,084 7.3% - 0.0%
CORPORATE
Revolving Line of Credit 0.0% 112,000,000 7.6%
------------
SUB-TOTAL 0.0% 112,000,000 7.6%
TOTAL OUTSTANDING DEBT 1,336,090,242 142,000,000
SWAP - -
-------------- ------------
TOTAL DEBT AFTER HEDGE $1,336,090,242 90.4% $142,000,000 9.6%
- -----------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
OUTSTANDING DEBT (1)
% OF TOTAL
TOTAL INDEBTEDNESS
WHOLLY OWNED
Mortgage Notes Payable $1,258,035,158 85.1%
Revolving Line of Credit - 0.0% OUTSTANDING
SUB-TOTAL 1,258,035,158 85.1% PRINCIPAL
PARTNERSHIPS AND JOINT VENTURES (AT PREIT'S SHARE) BALANCE
Mortgage Notes Payable 108,055,084 7.3% [GRAPHIC OMITTED]
Revolving Line of Credit - 0.0%
Construction loans payable - 0.0%
--------------
SUB-TOTAL 108,055,084 7.3%
CORPORATE
Revolving Line of Credit 7.6%
SUB-TOTAL 112,000,000 7.6%
--------------
TOTAL OUTSTANDING DEBT 1,478,090,242
SWAP -
--------------
TOTAL DEBT AFTER HEDGE $1,478,090,242 100.0%
-----------------------------------------------------------------------------------------------------------
(1) Includes mark to market of debt.
- --------------------------------------------------------------------------------
WEIGHTED AVERAGE INTEREST RATES
WEIGHTED AVERAGE
PRINCIPAL BALANCE INTEREST RATE
Fixed Rate Debt $1,275,144,423 7.30%
Mortgage Debt Premium 60,945,819 N/A
Floating Rate Debt 142,000,000 3.50%
------------------------------------
TOTAL $1,478,090,242 6.92%
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
MORTGAGE/CONSTRUCTION MATURITY SCHEDULE (1)
MORTGAGE BALANCE CUMULATIVE %
YEAR AT MATURITY % OF DEBT EXPIRING OF DEBT EXPIRING
- -----------------------------------------------------------------------------------------------------------------------------------
2004 $ - 0.0% 0.0%
2005 170,885,956 14.3% 14.3%
2006 129,058,166 10.8% 25.2%
2007 57,769,418 4.8% 30.0%
2008 519,136,276 43.5% 73.5%
2009 62,194,365 5.2% 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%
-------------------------------------
$1,192,430,823 100.0%
- -----------------------------------------------------------------------------------------------------------------------------------
(1) The average period to mortgage maturity is 4.6 years.
- -----------------------------------------------------------------------------------------------------------------------------------
INTEREST RATE HEDGING INSTRUMENTS
EXPIRATION FIXED RATE FLOATING RATE IN
NOMINAL AMOUNT INTEREST RATE LIMIT DATE NOMINAL AMOUNT IN AGREEMENT AGREEMENT EXPIRATION DATE
- ------------------------------------------------------ --------------------------------------------------------------------------
CAP NONE SWAP NONE
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE DEBT BALANCE
MORTGAGE DEBT (1)
& CONSTRUCTION LINE OF CREDIT &
LOANS BANK LOANS REMIC TOTAL
----------------- ---------------- -------------- --------------
BEGINNING BALANCE 6/30/2004 $896,271,888 $ 219,000,000 $ 479,876,115 $1,595,148,095
Disposition (Non-Core Assets) 9/27/2004 (107,000,000) (107,000,000)
Debt Amortization (2) 9/30/2004 (5,654,776) (4,402,985) (10,057,761)
-----------------------------------------------------------------------
ENDING BALANCE 9/30/2004 $890,617,112 $ 112,000,000 $ 475,473,130 $1,478,090,242
WEIGHTED AVERAGE BALANCE $896,271,888 $ 215,510,870 $ 479,876,115 $1,591,658,873
- -----------------------------------------------------------------------------------------------------------------------------------
(1) Includes mark to market of debt.
(2) Includes the amortization of debt premium.
PAGE 15
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
DEBT RATIOS(1)
9/30/2004 9/30/2003
--------------- ---------------
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 $ 1,504,604,212 $ 761,163,122
Gross Asset Value $ 3,022,626,040 $ 1,523,628,448
RATIO 49.78% 49.96%
- ------------------------------------------------------------------------------------------------------------------------------------
EBITDA TO INTEREST EXPENSE
Ratio of EBITDA(4) to Interest Expense(5) greater than or equal to 1.90 to
1.00.
EBITDA $ 219,394,765 $ 104,337,345
Interest Expense $ 97,882,204 $ 49,889,409
RATIO 2.24 2.09
- ------------------------------------------------------------------------------------------------------------------------------------
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 $ 217,750,933 $ 102,768,757
Fixed Charges $ 130,138,879 $ 56,925,508
RATIO 1.67 1.81
- ------------------------------------------------------------------------------------------------------------------------------------
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 $ 1,305,144,423
Gross Asset Value $ 3,022,626,040
RATIO 43.18% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Debt ratios are based on loan covenants included in the Trust's 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 and the non-core
properties) 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 plus (xi) adjusted
NOI for all non-core properties for the previous rolling four quarters
capitalized at 11.00%. Capitalized terms used in this footnote shall have
the meanings ascribed to such terms in the Credit Agreement.
(4) EBITDA defined as: Rolling four quarters of net earnings (loss) of the Trust
before minority interests and distributions to holders of Preferred Stock,
plus the sum of (i) depreciation and amortization expense and other non-cash
charges, plus (ii) interest expense, plus (iii) all provisions for income
taxes, minus (plus) (iv) extraordinary gains (losses), plus (v) the greater
of (a) ownership share or (b) recourse share of EBITDA of unconsolidated
affiliates.
(5) Interest Expense defined as: All paid, accrued or capitalized interest
expense excluding capitalized interest funded from construction loans plus
the greater of (a) ownership share or (b) recourse share of all paid,
accrued or capitalized interest expense of unconsolidated affliliates.
(6) Adjusted EBITDA defined as: EBITDA plus ground rent payments minus the
Reserve for Replacements for all Properties.
(7) Fixed Charges defined as: Interest Expense plus regularly scheduled
principal payments on Indebtedness other than any balloon, bullet or similar
principal payment on any Indebtedness plus preferred dividends payments plus
ground rent payments.
(8) Secured Indebtedness defined as: (a) Aggregated principal amount of all
Indebtedness that is secured by any Lien and (b) Indebtedness under a
Guaranty of the Secured Indebtedness of another.
PAGE 16
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
PORTFOLIO SUMMARY--RETAIL
(Sorted by State)
RETAIL PROPERTIES (1) CITY STATE SUBTYPE PROPERTY MANAGEMENT STATUS PROPERTY STATUS
--------------------- ----- ----- ---------------- ----------------- ---------------
Wiregrass Commons Dothan AL Enclosed Mall PREIT New
Christiana Power Center I Newark DE Power Center PREIT Existing
South Blanding Village Jacksonville FL Strip Center PREIT Existing
Francis Scott Key Mall (2) Frederick MD Enclosed Mall PREIT New
Valley Mall Hagerstown MD Enclosed Mall PREIT New
The Mall at Prince George Hyattsville MD Enclosed Mall PREIT Redevelopment
Dartmouth Mall Dartmouth MA Enclosed Mall PREIT Existing
Cherry Hill Mall Cherry Hill NJ Enclosed Mall PREIT Existing
Moorestown Mall Moorestown NJ Enclosed Mall PREIT Existing
Phillipsburg Mall Phillipsburg NJ Enclosed Mall PREIT New
Echelon Mall Voorhees NJ Enclosed Mall PREIT Existing
Jacksonville Mall Jacksonville NC Enclosed Mall PREIT New
Crest Plaza Shopping Center Allentown PA Strip Center PREIT Existing
Lehigh Valley Mall Allentown PA Enclosed Mall Third Party Existing
South Mall (2) Allentown PA Enclosed Mall PREIT New
Whitehall Mall Allentown PA Power Center Third Party Existing
Logan Valley Mall (2) Altoona PA Enclosed Mall PREIT New
Capital City Mall (2) Camp Hill PA Enclosed Mall PREIT New
Chambersburg Mall (2) Chambersburg PA Enclosed Mall PREIT New
Palmer Park Mall Easton PA Enclosed Mall PREIT Existing
YEAR BUILT/ YEARS SINCE
RETAIL PROPERTIES (1) OWNERSHIP INTEREST DATE ACQUIRED LAST RENOVATED RENOVATION OWNED GLA (ANCHORS)
--------------------- ------------------ ------------- -------------- ----------- ------------------
Wiregrass Commons 100% 2003 1986/1999 5 -
Christiana Power Center I 100% 1998 1998 6 190,814
South Blanding Village 100% 1988/1990 1986 18 73,921
Francis Scott Key Mall (2) 89% 2003 1978/1991 13 291,620
Valley Mall 100% 2003 1974/1999 5 294,348
The Mall at Prince George 100% 1998 1959/2004 0 404,462
Dartmouth Mall 100% 1997 1971/2000 4 208,460
Cherry Hill Mall 100% 2003 1961/1990 14 -
Moorestown Mall 100% 2003 1963/2000 4 408,356
Phillipsburg Mall 89% 2003 1989/2003 1 326,170
Echelon Mall 100% 2003 1970/1998 6 310,840
Jacksonville Mall 100% 2003 1981/1998 6 242,115
Crest Plaza Shopping Center 100% 1964 1959/2003 1 45,000
Lehigh Valley Mall 50% 1973 1977/1996 8 212,000
South Mall (2) 89% 2003 1975/1992 12 188,858
Whitehall Mall 50% 1964 1964/1998 6 294,635
Logan Valley Mall (2) 100% 2003 1960/1997 7 454,387
Capital City Mall (2) 100% 2003 1974/1998 6 204,301
Chambersburg Mall (2) 89% 2003 1982 22 241,690
Palmer Park Mall 100% 1972/2003 1972/1998 6 314,235
OWNED GLA TOTAL OWNED TOTAL PROPERTY
RETAIL PROPERTIES (1) (NON-ANCHORS) GLA SPACE NOT OWNED (NAME/GLA) GLA
--------------------- ------------- ------------ ------------------ ---------- --------------
Wiregrass Commons 229,713 229,713 Dillard's 403,163 632,876
JC Penney
McRaes
Parisian
Christiana Power Center I 111,595 302,409 - 302,409
South Blanding Village 32,736 106,657 - 106,657
Francis Scott Key Mall (2) 277,869 569,489 Hecht's 139,333 708,822
Valley Mall 355,892 650,240 Sears 243,400 893,640
Hecht's
The Mall at Prince George 348,873 753,335 - 753,335
Dartmouth Mall 314,929 523,389 Filene's 93,123 616,512
Cherry Hill Mall 528,917 528,917 JC Penney 740,770 1,269,687
Macy's
Strawbridge's
Moorestown Mall 324,573 732,929 Lord & 321,200 1,054,129
Taylor
Strawbridge's
Phillipsburg Mall 246,300 572,470 - 572,470
Echelon Mall 433,275 744,115 Boscov's 396,783 1,140,898
Strawbridge's
Jacksonville Mall 232,530 474,645 - 474,645
Crest Plaza Shopping Center 60,827 105,827 Target 143,130 248,957
Lehigh Valley Mall 466,431 678,431 JC Penney 371,986 1,050,417
Strawbridge's
Firestone
South Mall (2) 214,884 403,742 - 403,742
Whitehall Mall 231,727 526,362 - 526,362
Logan Valley Mall (2) 327,247 781,634 - 781,634
Capital City Mall (2) 284,359 488,660 Hecht's 120,000 608,660
Chambersburg Mall (2) 211,237 452,927 - 452,927
Palmer Park Mall 131,775 446,010 - 446,010
MAJORS / LEASE
RETAIL PROPERTIES (1) ANCHORS EXPIRATION
--------------------- ------- -----------
Wiregrass Commons Dillard's 1/31/37
JC Penney 5/30/14
McRaes 1/31/37
Parisian 1/31/37
Christiana Power Costco 1/31/19
Center I Dick's Sporting 11/30/13
Gds
South Blanding Staples 9/30/08
Village Food Lion 7/31/08
Francis Scott Key Hecht's N/A
Mall (2) Sears 7/31/08
JC Penney 5/31/06
6/30/10
Value City
Valley Mall Sears 4/14/44
JC Penney 10/3/09
1/31/14
Bon-Ton 10/23/49
Hecht's
The Mall at Prince JC Penney 7/31/06
George 10/31/08
Hecht
Dartmouth Mall JC Penney 7/31/09
4/12/06
Sears N/A
Filene's
Cherry Hill Mall JC Penney N/A
N/A
Macy's N/A
Strawbridge's
Moorestown Mall Boscov's 10/31/10
Lord & N/A
Taylor 10/5/22
Sears N/A
Strawbridge's
Phillipsburg Mall Bon-Ton 1/31/10
JC Penney 3/31/10
4/30/09
Sears 1/31/25
Kohl's
Echelon Mall Boscov's N/A
Strawbridge's N/A
Jacksonville Mall Belks 8/21/11
JC Penney 8/31/05
8/4/11
Sears
Crest Plaza Weis 1/31/07
Shopping Center Market N/A
Target
Lehigh Valley Mall Macy's 7/31/12
JC Penney N/A
N/A
Strawbridge's
South Mall (2) Bon-Ton 9/30/05
Stein 10/31/06
Mart 1/31/11
Steve & Barry's
Whitehall Mall Kohl's 3/9/07
Sears 9/18/11
Bed, Bath & 1/31/10
Beyond
Logan Valley Mall (2) JC Penney 6/30/17
1/31/05
Kaufmann's 10/31/16
Sears
Capital City Mall (2) JC Penney 11/30/10
N/A
Hecht's 7/31/04
Sears
Chambersburg Mall (2) Bon-Ton 7/31/05
JC Penney 3/31/12
2/9/10
Sears 2/28/07
Value City
Palmer Park Mall Bon-Ton 7/25/14
Boscov's 10/31/18
PAGE 17A
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
PORTFOLIO SUMMARY-RETAIL
(Sorted by State)
PROPERTY
RETAIL PROPERTIES (1) CITY STATE SUBTYPE MANAGEMENT STATUS PROPERTY STATUS
--------------------- ---- ----- ------- ----------------- ---------------
Exton Square Mall Exton PA Enclosed Mall PREIT Existing
Festival at Exton Exton PA Strip Center PREIT Existing
North Hanover Mall (2) Hanover PA Enclosed Mall PREIT New
Paxton Towne Centre Harrisburg PA Power Center PREIT Existing
Laurel Mall Hazleton PA Enclosed Mall Third Party Existing
Red Rose Commons Lancaster PA Power Center Third Party Existing
The Court at Oxford Valley Langhorne PA Power Center Third Party Existing
Beaver Valley Mall Monaca PA Enclosed Mall PREIT Existing
Lycoming Mall (2) Pennsdale PA Enclosed Mall PREIT New
Northeast Tower Center Philadelphia PA Power Center PREIT Existing
The Gallery at Market East I (3) Philadelphia PA Enclosed Mall PREIT Existing
The Gallery at Market East II (3) Philadelphia PA Enclosed Mall PREIT New
Plymouth Meeting Mall Plymouth Meeting PA Enclosed Mall PREIT Existing
Metroplex Shopping Center Plymouth Meeting PA Power Center Third Party Existing
Viewmont Mall (2) Scranton PA Enclosed Mall PREIT New
Springfield Park I & II Springfield PA Strip Center PREIT Existing
Nittany Mall (2) State College PA Enclosed Mall PREIT New
Uniontown Mall (2) Uniontown PA Enclosed Mall PREIT New
Creekview Shopping Center Warrington PA Power Center PREIT Existing
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR BUILT/ YEARS SINCE
RETAIL PROPERTIES (1) OWNERSHIP INTEREST DATE ACQUIRED LAST 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 I (3) 100% 2003 1977/1990 13
The Gallery at Market East II (3) 100% 2004 1984 20
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
- --------------------------------------------------------------------------------------------------------------------
RETAIL PROPERTIES (1) OWNED GLA (ANCHORS) OWNED GLA (NON-ANCHORS) TOTAL OWNED GLA
--------------------- ------------------- ----------------------- -----------------
Exton Square Mall 440,301 369,483 809,769
Festival at Exton 60,425 84,578 145,003
North Hanover Mall (2) 288,177 165,734 443,911
Paxton Towne Centre 151,627 292,856 444,483
Laurel Mall 350,323 208,429 558,752
Red Rose Commons - 263,452 263,452
The Court at Oxford Valley 176,831 280,032 456,863
Beaver Valley Mall 511,267 446,833 958,100
Lycoming Mall (2) 321,441 340,045 661,486
Northeast Tower Center 256,021 182,521 438,542
The Gallery at Market East I (3) 193,550 193,550
The Gallery at Market East II (3) 127,271 207,455 334,726
Plymouth Meeting Mall 345,000 413,593 758,593
Metroplex Shopping Center 67,185 410,276 477,461
Viewmont Mall (2) 386,262 236,807 623,069
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
- -----------------------------------------------------------------------------------------------------------------------
RETAIL PROPERTIES (1) SPACE NOT OWNED (NAME/GLA) TOTAL PROPERTY GLA
---------------------- --------------------------------------- -----------------------------
Exton Square Mall Strawbridge's K-Mart 277,468 1,087,237
Festival at Exton - 145,003
North Hanover Mall (2) - 453,911
Paxton Towne Centre Target Costco 273,058 717,541
Laurel Mall - 558,752
Red Rose Commons Weis Markets 199,590 463,042
Home Depot
The Court at Oxford Valley Home Depot BJ's 247,623 704,486
Beaver Valley Mall Kaufmann's 204,770 1,162,870
Lycoming Mall (2) Kaufmann's 120,000 781,486
Northeast Tower Center Raymour & Flanigan 38,678 477,220
The Gallery at Market East I (3) - 193,550
The Gallery at Market East II (3) - 334,726
Plymouth Meeting Mall Strawbridge's 214,635 973,228
Metroplex Shopping Center Target Lowe's 300,729 778,190
Viewmont Mall (2) Kaufmann's 120,000 743,069
Springfield Park I & II Target 145,669 272,500
Nittany Mall (2) Kaufmann's 95,000 532,079
Uniontown Mall (2) - 698,420
Creekview Shopping Center Target Lowe's 288,916 425,002
- -----------------------------------------------------------------------------------------------------------------------
RETAIL PROPERTIES (1) MAJORS / ANCHORS LEASE EXPIRATION
--------------------- ---------------- ----------------
Exton Square Mall Boscov's 10/31/19
JC Penney 5/31/20
K-Mart N/A
Sears 1/31/20
Strawbridge's N/A
Festival at Exton Sears Hardware 2/28/05
Clemen's 10/31/11
North Hanover Mall (2) Bon-Ton 1/31/06
JC Penney 1/31/06
Black Rose Antiques N/A
Sears 11/30/09
Paxton Towne Centre Target N/A
Kohl's 1/25/21
Weis Markets 11/30/20
Costco N/A
Laurel Mall Boscov's 4/30/08
K-Mart 8/31/19
JC Penney 10/31/09
Red Rose Commons Weis Markets N/A
Home Depot N/A
The Court at Oxford Valley Best Buy 12/31/11
Dick's Sporting Gds 4/15/11
Linens N Things 2/14/17
Beaver Valley Mall Boscov's 9/30/18
JC Penney 9/30/17
Sears 8/15/06
Kaufmann's N/A
Lycoming Mall (2) Bon-Ton 7/31/06
JC Penney 10/31/05
Kaufman's N/A
Sears 7/31/08
Value City 7/31/08
Northeast Tower Center Home Depot 9/30/05
Petsmart 2/28/12
Wal-Mart 1/31/14
The Gallery at Market East I (3) K-Mart N/A
Strawbridge's N/A
The Gallery at Market East II (3) Burlington Coat Factory 28/02/2032
Plymouth Meeting Mall AMC Theater 12/31/18
Boscov's 10/31/16
Strawbridge's N/A
Metroplex Shopping Center Target N/A
Lowe's N/A
Giant 2/28/21
Viewmont Mall (2) JC Penney 10/31/05
Sears 12/31/05
Kauffmann's N/A
Springfield Park I & II Target N/A
Bed, Bath & Beyond 1/31/09
LA Fitness 3/31/17
Nittany Mall (2) Bon-Ton 1/31/08
JC Penney 7/31/05
Kaufmann's N/A
Sears 8/31/05
Uniontown Mall (2) Bon-Ton 1/31/06
JC Penney 10/31/05
Roomful Express Furn. 3/26/05
Sears 2/25/08
Teletech Customer Care 6/28/05
Value City 7/31/07
Creekview Shopping Center Target N/A
Lowe's N/A
Genuardi's 12/31/21
- -------------------------------------------------------------------------------------------------
PAGE 17B
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
PORTFOLIO SUMMARY-RETAIL
(Sorted by State)
RETAIL PROPERTY MANAGEMENT PROPERTY OWNERSHIP DATE YEAR BUILT/ YEARS SINCE
PROPERTIES (1) CITY STATE SUBTYPE STATUS STATUS INTEREST ACQUIRED LAST RENOVATED RENOVATION
-------------- ---- ----- ------- ---------- -------- --------- -------- -------------- -----------
Washington Crown Washington PA Enclosed PREIT New 89% 2003 1969/1999 5
Center (2) Mall
Wyoming Valley Wilkes-Barre PA Enclosed PREIT New 100% 2003 1974/1995 9
Mall (2) Mall
Willow Grove Park Willow Grove PA Enclosed PREIT New 100% 2000/2003 1982/2001 3
Mall
Magnolia Mall Florence SC Enclosed PREIT Existing 100% 1997 1979/1992 12
Mall
The Commons at Florence SC Strip PREIT Existing 100% 1999 1991/2002 2
Magnolia Center
New River Valley Mall Christiansburg VA Enclosed PREIT New 89% 2003 1988 16
Mall
Patrick Henry Mall Newport News VA Enclosed PREIT New 89% 2003 1988/1999 5
Mall
Crossroads Mall Beckley WV Enclosed PREIT New 100% 2003 1981 23
Mall
Valley View Mall La Crosse WI Enclosed PREIT New 100% 2003 1980/2001 3
Mall
- --------------------------------------------------------------------------------------------------------------------------------
PROPERTIES HELD FOR SALE
Schuylkill Mall (2) Frackville PA Enclosed PREIT New 100% 2003 1980/1991 13
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 8.50
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL OWNED GLA OWNED GLA TOTAL SPACE NOT OWNED (NAME/GLA) TOTAL PROPERTY MAJORS / LEASE
PROPERTIES (1) (ANCHORS) (NON-ANCHORS) OWNED GLA GLA ANCHORS EXPIRATION
-------------- --------- ------------- --------- -------------------------- -------------- --------- -----------
Washington Crown 245,401 288,171 533,572 Kaufmann's 140,095 673,667 Sears 8/17/09
Center (2) Bon-Ton 1/31/10
Gander 7/24/13
Kaufmann's N/A
Wyoming Valley 592,110 319,452 911,562 - 911,562 Bon-Ton 1/31/07
Mall (2) JC Penney 1/31/07
Sears 8/1/06
Kaufmann's 1/31/07
Willow Grove Park 225,000 339,098 564,098 Sears 641,861 1 ,205,959 Sears N/A
Bloomingdale's Bloomingdale's N/A
Strawbridge Strawbridge's N/A
Macy's 1/31/22
Magnolia Mall 343,118 219,742 562,860 - 562,860 Belk 1/31/06
Best Buy 1/31/13
JC Penney 3/31/07
Sears 10/16/09
The Commons at 51,574 52,915 104,489 Target 126,200 230,689 Goody's 5/31/12
Magnolia Target N/A
New River Valley Mall 240,306 187,849 428,155 - 428,155 Belks 4/19/08
JC Penney 3/31/08
Sears 8/2/08
Patrick Henry Mall 267,175 233,191 500,366 Hecht's 140,000 640,366 Dillard's Mens 4/30/08
Dillard's Womens 9/22/13
JC Penney 10/31/15
Hecht's N/A
Crossroads Mall 256,248 193,836 450,084 - 450,084 Sears 11/30/08
JC Penney 3/31/06
Belk 12/31/06
Valley View Mall 96,357 238,380 334,737 Herberges 254,596 589,333 JC Penney 7/31/10
Marshall Herberges N/A
Fields Marshall Fields N/A
Sears Sears N/A
- -----------------------------------------------------------------------------------------------------------------------------------
PROPERTIES HELD FOR SALE
Schuylkill Mall (2) 346,990 318,921 665,911 Bon-Ton 60,916 726,827 K-Mart 10/31/05
Sears 10/31/05
Bon-Ton N/A
Black Diamond 12/31/04
Antiques
TOTAL ASSETS HELD FOR
SALE 346,990 318,921 665,911 - 60,916 726,827
TOTAL CONTINUING
PROPERTIES 11,232,011 12,205,989 23,438,000 - 6,801,776 30,239,776
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL WHOLLY OWNED 10,394,488 10,621,271 21,015,759 5,597,095 26,612,854
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL JOINT VENTURE 1,184,513 1,903,639 3,088,152 1,265,597 4,353,749
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL FOR Wholly Owned
and Joint Venture 11,579,001 12,524,910 24,103,911 6,862,692 30,966,603
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE FOR Wholly Owned
and Joint Venture
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
SUMMARY OF PROPERTIES FOR WHOLLY OWNED AND JOINT VENTURE PROPERTIES (4)
- ----------------------------------------------------------------------------------------
ENCLOSED MALL PREIT MANAGED EXISTING WHOLLY OWNED
35 42 25 41
- ----------------------------------------------------------------------------------------
POWER CENTER THIRD PARTY MANAGED NEW JOINT VENTURE
8 6 22 7
- ----------------------------------------------------------------------------------------
STRIP CENTER REDEVELOPMENT
5 1
- ----------------------------------------------------------------------------------------
48 48 48 48
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
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
20,469,446 21,142,590 11,129,880 21,015,759 17.5%
- ----------------------------------------------------------------------------------------------------------------------------------
POWER CENTER THIRD PARTY MANAGED NEW JOINT VENTURE TOP ASSET AS A PERCENTAGE OF TOTAL
OWNED GLA:
3,045,658 2,961,321 12,220,696 3,088,152 4.0%
- ----------------------------------------------------------------------------------------------------------------------------------
STRIP CENTER REDEVELOPMENT
588,807 753,335
- ----------------------------------------------------------------------------------------------------------------------------------
24,103,911 24,103,911 24,103,911 24,103,911
- ----------------------------------------------------------------------------------------------------------------------------------
(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.
(3) The Gallery at Market East I & The Gallery at Market East II were counted as
one property.
PAGE 17C
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
QUARTERLY ACTIVITY
PROPERTY ACQUISITIONS/DISPOSITIONS SUMMARY
- -----------------------------------------------------------------------------------------------------------------------------------
NAME OF PROJECT, LOCATION SQUARE FEET/ OWNERSHIP DATE ACQUIRED, TOTAL COST OR PRICE
UNITS/ACRES INTEREST COMPLETED, OR SOLD
- -----------------------------------------------------------------------------------------------------------------------------------
ACQUISITIONS:
None
TOTAL ACQUISITIONS SQUARE FEET - $ -
PENDING ACQUISITIONS:
Cumberland Mall, Vineland, New Jersey SQUARE FEET 925,000 100% 4Q04 $ 59,500,000
Orlando Fashion Square, Orlando, Florida 1,100,000 100% 4Q04 123,500,000
--------- -------------
TOTAL PENDING ACQUISITIONS SQUARE FEET 2,025,000 $ 183,000,000
DIVESTITURES
Bradley Square Mall, Cleveland, TN, Martinsburg
Mall, Martinsburg, WV, Mount Berry Square Mall,
Rome, GA, Shenango Valley Mall, Hermitage, PA
and West Manchester Mall, York, PA. SQUARE FEET 2,625,806 100% 3Q04 $ 110,700,000
Rio Grande Mall 165,583 60% 3Q04 4,100,000
--------- -------------
TOTAL DIVESTITURES SQUARE FEET 2,791,389 $ 114,800,000
PENDING DIVESTITURES:
Schuylkill Mall, Frackville, PA 726,827 N/A N/A
--------- -------------
TOTAL PENDING DIVESTITURES SQUARE FEET 726,827 $ -
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
NAME OF PROJECT, LOCATION PREIT'S COST OR PRICE EXPECTED NOI MAJOR TENANTS
CAP (1)
- -----------------------------------------------------------------------------------------------------------------------------------
ACQUISITIONS:
None
TOTAL ACQUISITIONS $ -
PENDING ACQUISITIONS:
Cumberland Mall, Vineland, New Jersey $ 59,500,000 10.2% Boscov's, JC Penney, Value City
Orlando Fashion Square, Orlando, Florida 123,500,000 7.6% Burdines-Macy's, Dillard's, JC Penney, Sears
-------------
TOTAL PENDING ACQUISITIONS $ 183,000,000
DIVESTITURES
Bradley Square Mall, Cleveland, TN, Martinsburg
Mall, Martinsburg, WV, Mount Berry Square Mall,
Rome, GA, Shenango Valley Mall, Hermitage, PA
and West Manchester Mall, York, PA. $ 110,700,000 11.0%
Rio Grande Mall 4,100,000 11.0%
-------------
TOTAL DIVESTITURES $ 114,800,000
PENDING DIVESTITURES:
Schuylkill Mall, Frackville, PA N/A N/A
-------------
TOTAL PENDING DIVESTITURES $ -
- -----------------------------------------------------------------------------------------------------------------------------------
(1) Expected NOI Cap is defined as PREIT's share of NOI in the year of
stabilization divided by PREIT's share of the investment, except in the
case of partner buyouts, where Expected NOI Cap is defined as incremental
NOI budgeted / PREIT's incremental investment in the property.
PAGE 18
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
DEVELOPMENT ACTIVITY
- -----------------------------------------------------------------------------------------------------------------------
NAME OF PROJECT LOCATION PROPERTY TYPE TOTAL PROJECTED PROPERTY
GLA (SQ FT) (1)
- -----------------------------------------------------------------------------------------------------------------------
Christiana Power Center (Phase II) (2) Newark, DE Power Center 355,670
Lacey Ocean County, NJ Power Center 273,111
New Garden New Garden Twp, PA Power Center 404,614
Pavilion at Market East (4) Philadelphia, PA Land N/A
- -----------------------------------------------------------------------------------------------------------------------
TOTAL DEVELOPMENT ACTIVITY 1,033,395
- -----------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NAME OF PROJECT TOTAL PROJECTED COST (1) PREIT'S SHARE PREIT'S SHARE OF EXPECTED
OF COST INVESTMENT TO DATE STABILIZED NOI CAP
- ------------------------------------------------------------------------------------------------------------------------------------
Christiana Power Center (Phase II) (2) N/A N/A $ 4,681,706 N/A
Lacey 34,532,519 26,125,086 2,738,561 10.0%
New Garden 42,580,062 27,830,062 1,451,223 8.5%
Pavilion at Market East (4) N/A N/A 1,506,178 N/A
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DEVELOPMENT ACTIVITY $ 77,112,581 $ 53,955,148 $ 10,377,668 9.2%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NAME OF PROJECT CONST START DATE OF INITIAL EXPECTED DATE OF STABILIZED OPERATIONS STATUS
DATE OCCUPANCY COMPLETION DATE
- ------------------------------------------------------------------------------------------------------------------------------------
Christiana Power Center (Phase II) (2) N/A N/A N/A N/A Development
Lacey 1Q05 4Q05 2Q06(3) 3Q06 Development
New Garden 2Q05 1Q06 1Q06 2Q06 Development
Pavilion at Market East (4) N/A N/A N/A N/A Construction
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DEVELOPMENT ACTIVITY
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NAME OF PROJECT % COMP. % LEASED % OCCUPIED ANCHORS PREIT'S
SHARE
- ------------------------------------------------------------------------------------------------------------------------------------
Christiana Power Center (Phase II) (2) N/A 0% 0% 100%
Lacey 10% 48% 0% Home Depot 100%
New Garden 5% 32% 0% Home Depot, Supermarket 100%
Pavilion at Market East (4) 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 unable to predict the outcome of this proceeding.
(3) Home Depot is expected to open in 4Q05 with the balance of the Shopping
Center to open during the 2Q06.
(4) 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)
- ------------------------------------------------------------------------------------------------------------------------------------
NAME OF PROJECT LOCATION PROPERTY TYPE TOTAL PROJECTED PROPERTY
GLA (SQ FT) (1)
- ------------------------------------------------------------------------------------------------------------------------------------
The Mall at Prince Georges (2)(3) Hyattsville, MD Enclosed Mall 893,274
Echelon Mall (4) Voorhees, NJ Enclosed Mall 1,187,631
Patrick Henry Mall (5) Newport News, VA Enclosed Mall 712,371
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL REDEVELOPMENT ACTIVITY $ 2,793,276
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NAME OF PROJECT TOTAL PROJECTED PREIT'S SHARE OF COST PREIT'S SHARE OF EXPECTED STABILIZED
COST (1) INVESTMENT TO DATE NOI CAP
- ------------------------------------------------------------------------------------------------------------------------------------
The Mall at Prince Georges (2)(3) $ 24,146,000 $ 18,000,000 $ 8,933,061 12.0%
Echelon Mall (4) 13,500,000 572,693 11.0%
Patrick Henry Mall (5) 25,700,000 25,700,000 33,435 10.0%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL REDEVELOPMENT ACTIVITY $ 49,846,000 $ 57,200,000 $ 9,539,189 10.9%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NAME OF PROJECT CONST START DATE OF INITIAL EXPECTED DATE OF STABILIZED OPERATIONS STATUS
DATE OCCUPANCY COMPLETION DATE
- ------------------------------------------------------------------------------------------------------------------------------------
The Mall at Prince Georges (2)(3) 2Q03 4Q04 4Q04 4Q05 Construction
Echelon Mall (4) 2Q05 2Q06
Patrick Henry Mall (5) 4Q04 4Q05 4Q05 4Q05
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL REDEVELOPMENT ACTIVITY
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NAME OF PROJECT % COMP. % LEASED % OCCUPIED ANCHORS PREIT'S
SHARE
- ------------------------------------------------------------------------------------------------------------------------------------
The Mall at Prince Georges (2)(3) 40% 65% 0% Target 100%
Echelon Mall (4) 4% 0% 0% Wal-Mart (4) 100%
Patrick Henry Mall (5) 0% 49% 0% Dick's Sporting Goods 100%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL REDEVELOPMENT ACTIVITY
- ------------------------------------------------------------------------------------------------------------------------------------
(1) GLA and total project cost include tenants that purchased their respective
land; therefore, the % leased and occupied will also include these tenants.
(2) Income producing property, but still under development.
(3) The mall at Prince Georges % leased is based on the 210,010 sq foot
redevelopment area which was vacant at 9/30/04.
(4) Wal-Mart committed to the redevelopment plans at Echelon Mall. See PREIT's
press release from 7/14/04.
(5) Dick's Sporting Goods committed to the redevelopment plans at Patrick Henry
Mall. See PREIT's press release from 8/05/04.
PAGE 19
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
TOP TWENTY TENANTS (BY PREIT'S SHARE OF ANNUALIZED BASE RENT)
-----------------------------------------------------------
NUMBER OF STORES
-----------------------------------------------------------
PERCENTAGE RENT
IN LIEU OF FIXED
RENT OR COMMON
TENANT FIXED RENT AREA COSTS (1) TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
Gap, Inc./Old Navy 53 3 56
The Limited Stores, Inc. 76 16 92
JC Penney 27 3 30
Footlocker, Inc. 62 3 65
Sears 26 3 29
Zales 82 0 82
Hallmark Cards, Inc. 53 2 55
Sterling Jewelers, Inc. (Kay Jewelers) 37 0 37
American Eagle Outfitters 28 1 29
Borders 31 1 32
Trans World Entertainment 31 0 31
Bon-Ton 15 1 16
Regis Corp. 80 0 80
Boscov's 6 1 7
Kay Bee Toys (4) 30 1 31
Sun Capital Partners 26 2 28
Charming Shoppes, Inc. 28 1 29
Shoe Show, Inc. 32 0 32
Payless Shoe Source 38 5 43
Luxottica 38 0 38
- ------------------------------------------------------------------------------------------------------------------------------------
Total Top 20 Tenants 799 43 842
- ------------------------------------------------------------------------------------------------------------------------------------
Total Retail Leased 3,315
- ------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------
GLA OF STORES
----------------------------------------------------------
PERCENTAGE RENT
IN LIEU OF FIXED
RENT OR COMMON
TENANT FIXED RENT AREA COSTS (1) TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
Gap, Inc./Old Navy 644,400 35,012 679,412
The Limited Stores, Inc. 462,485 59,441 521,926
JC Penney 2,396,595 362,130 2,758,725
Footlocker, Inc. 343,270 7,487 350,757
Sears 3,039,832 412,236 3,135,068
Zales 67,048 67,048
Hallmark Cards, Inc. 186,891 8,286 195,177
Sterling Jewelers, Inc. (Kay Jewelers) 51,542 51,542
American Eagle Outfitters 135,174 3,800 138.974
Borders 177,773 3,725 181,498
Trans World Entertainment 141,240 141,240
Bon-Ton 1,077,982 60,916 1,138,898
Regis Corp. 95,045 95,045
Boscov's 1,130,706 178,000 1,308,706
Kay Bee Toys (4) 133,438 3,407 136,845
Sun Capital Partners 85,385 7,810 93,195
Charming Shoppes, Inc. 183,630 5,204 188,834
Shoe Show, Inc. 155,180 155,180
Payless Shoe Source 124,202 17,103 141,305
Luxottica 79,595 79,595
- ------------------------------------------------------------------------------------------------------------------------------------
Total Top 20 Tenants 10,711,413 1,164,557 11,558,970
- ------------------------------------------------------------------------------------------------------------------------------------
Total Retail Leased 22,080,797
- ------------------------------------------------------------------------------------------------------------------------------------
PREIT'S SHARE OF ANNUALIZED PERCENT OF PREIT'S
TENANT ANNUALIZED BASE RENT BASE RENT (2) TOTAL RETAIL BASE RENT
- ------------------------------------------------------------------------------------------------------------------------------------
Gap, Inc./Old Navy $13,253,815 $12,434,505 4.69%
The Limited Stores, Inc. 10,796,229 10,313,347 3.89%
JC Penney 6,910,930 6,779,824 2.56%
Footlocker, Inc. 6,081,445 5,769,509 2.18%
Sears 5,778,919 5,623,188 2.12%
Zales 4,926,451 4,715,676 1.78%
Hallmark Cards, Inc. 4,310,577 4,175,542 1.58%
Sterling Jewelers, Inc. (Kay Jewelers) 3,498,814 3,311,314 1.25%
American Eagle Outfitters 3,336,690 3,203,112 1.21%
Borders 3,414,480 3,188,582 1.20%
Trans World Entertainment 3,323,217 3,144,981 1.19%
Bon-Ton 2,943,869 2,943,869 1.11%
Regis Corp. 2,824,521 2,767,937 1.04%
Boscov's 3,137,572 2,695,972 1.02%
Kay Bee Toys (4) 2,822,006 2,681,537 1.01%
Sun Capital Partners 2,737,710 2,654,130 1.00%
Charming Shoppes, Inc. 2,651,983 2,512,946 0.95%
Shoe Show, Inc. 2,586,359 2,512,320 0.95%
Payless Shoe Source 2,623,325 2,471,897 0.93%
Luxottica 2,609,521 2,430,593 0.92%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Top 20 Tenants 90,568,433 86,330,781 32.59%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Retail Leased $276,920,992 $264,932,116(3) 100.00%
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Income from lease(s) in which tenant pays percentage rent in lieu of fixed
rent or common area costs 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 3rd quarter
base rent from continuing operations. Straight line rent is not included in
the base rent figures.
(4) Kay Bee Toys filed for bankruptcy protection (Chapter 11) in January 2004.
PAGE 20
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
RETAIL LEASE EXPIRATION SCHEDULE - ANCHORS(1)
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR LEASES GROSS LEASABLE AREA ANNUALIZED BASE RENT
- ------------------------------------------------------------------------------------------------------------------------------------
PERCENT OF AVERAGE
LEASE NUMBER OF PREIT'S SHARE OF TOTAL EXPIRING
EXPIRATION LEASES PERCENT RENT IN EXPIRING RENT IN EXPIRING (PREIT'S BASE RENT
YEAR EXPIRING EXPIRING GLA OF TOTAL YEAR YEAR (3) SHARE) PSF
- ------------------------------------------------------------------------------------------------------------------------------------
Prior (2) 1 85,483 0.77% $ 188,400 $188,400 0.52% $2.20
2004 0 - 0.00% - - 0.00% N/P
2005 17 1,443,834 13.09% 5,357,548 5,357,548 14.82% 3.71
2006 17 1,258,227 11.40% 3,129,830 3,129,830 8.66% 2.49
2007 8 814,155 7.38% 1,975,866 1,965,966 5.44% 2.43
2008 16 1,070,427 9.70% 2,799,649 2,799,649 7.75% 2.62
2009 13 1,050,150 9.52% 3,543,076 2,578,371 7.13% 3.37
2010 9 889,129 8.06% 2,797,803 2,797,803 7.74% 3.15
2011 7 615,055 5.57% 3,380,699 2,257,884 6.25% 5.50
2012 3 302,710 2.74% 512,783 475,902 1.32% 1.69
2013 5 304,486 2.76% 2,286,713 2,286,713 6.33% 7.51
2014 4 409,607 3.71% 1,645,670 1,645,670 4.55% 4.02
Thereafter 22 2,789,487 25.28% 12,363,397 10,663,608 29.50% 4.43
- -----------------------------------------------------------------------------------------------------------------------------------
TOTALS: 122 11,032,750 100% $39,981,434 $36,147,344 100% $3.62
- -----------------------------------------------------------------------------------------------------------------------------------
(1) Includes only Owned Anchor space.
(2) Includes all tenant leases which have already expired and are on a Month to
Month basis.
(3) Includes PREIT's proportionate share of tenant rents from joint venture
properties based on PREIT's ownership percentage in the respective joint
ventures.
PAGE 21
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
RETAIL LEASE EXPIRATION SCHEDULE - NON-ANCHORS(1)
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR LEASES GROSS LEASABLE AREA ANNUALIZED BASE RENT
- ------------------------------------------------------------------------------------------------------------------------------------
PERCENT OF AVERAGE
LEASE NUMBER OF PREIT'S SHARE OF TOTAL EXPIRING
EXPIRATION LEASES PERCENT RENT IN EXPIRING RENT IN EXPIRING (PREIT'S BASE RENT
YEAR EXPIRING EXPIRING GLA OF TOTAL YEAR YEAR (3) SHARE) PSF
- ------------------------------------------------------------------------------------------------------------------------------------
Prior (2) 132 369,250 3.34% $ 7,176,716 $ 6,764,949 2.93% $19.44
2004 89 162,311 1.47% 3,499,317 3,270,974 1.42% 21.56
2005 439 1,109,086 10.04% 24,317,369 23,158,403 10.04% 21.93
2006 407 1,113,488 10.08% 25,503,968 24,118,438 10.46% 22.90
2007 383 1,092,106 9.89% 24,040,874 22,718,282 9.85% 22.01
2008 342 1,041,401 9.43% 24,663,770 23,717,968 10.28% 23.68
2009 328 919,468 8.32% 23,498,545 22,808,243 9.89% 25.56
2010 319 1,175,877 10.64% 26,605,456 25,583,156 11.09% 22.63
2011 234 1,128,052 10.21% 25,011,380 21,945,086 9.51% 22.17
2012 193 808,615 7.32% 19,962,319 18,225,078 7.90% 24.69
2013 165 561,138 5.08% 14,261,046 13,356,122 5.79% 25.41
2014 97 477,265 4.32% 11,188,700 9,488,423 4.11% 23.44
Thereafter 65 1,089,990 9.87% 18,881,701 15,516,170 6.73% 17.32
- ------------------------------------------------------------------------------------------------------------------------------------
TOTALS: 3,193 11,048,047 100% $248,611,161 $230,671,292 100% $22.50
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes only Owned Non-Anchor space.
(2) Includes all tenant leases which have already expired and are on a Month to
Month basis.
(3) Includes PREIT's proportionate share of tenant rents from joint venture
properties based on PREIT's ownership percentage in the respective joint
ventures.
PAGE 22
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
LEASING ACTIVITY SUMMARY
RETAIL
AVERAGE INCREASE/
PREVIOUS AVERAGE DECREASE
BASE RENT NEW BASE IN BASE
NEW LEASE NUMBER GLA PSF RENT PSF RENT PSF
- --------- ------ --- --------- --------- ---------
PREVIOUSLY
LEASED SPACE:
<s>
1st Quarter 13 32,324 $18.76 $24.84 $6.08
2nd Quarter 17 42,013 24.59 32.96 8.37
3rd Quarter 32 67,026 31.86 35.34 3.48
4th Quarter
-
--------------------------------------------------------------------
TOTAL OR AVERAGE 62 141,363 $26.70 $32.23 $5.53
====================================================================
PREVIOUSLY
VACANT SPACE:
1st Quarter 12 26,926 $ - $23.40 $23.40
2nd Quarter 22 36,904 - 27.35 27.35
3rd Quarter 34 102,111 - 20.97 20.97
4th Quarter -
--------------------------------------------------------------------
TOTAL OR AVERAGE 68 165,941 - $22.78 $22.78
====================================================================
TOTAL
ANNUALIZED ANNUALIZED ANNUALIZED
TENANT LEASING COSTS OF
IMPROVEMENTS PSF COMMISSIONS PSF LEASING PSF
(1) (1)(2) (1)(2)
---------------- --------------- -----------
<s>
1st Quarter $1.76 $ - $1.76
2nd Quarter 2.50 - 2.50
3rd Quarter 4.00 - 4.00
4th Quarter
- -
--------------------------------------------------------
TOTAL OR AVERAGE $3.04 $ - $3.04
========================================================
PREVIOUSLY
VACANT SPACE:
1st Quarter $1.08 $ - $1.08
2nd Quarter 1.35 - 1.35
3rd Quarter 1.04 - 1.04
4th Quarter -
--------------------------------------------------------
TOTAL OR AVERAGE $1.12 $ - $1.12
========================================================
AVERAGE AVERAGE INCREASE/
PREVIOUS NEW BASE DECREASE
BASE RENT RENT PSF IN BASE
RENEWAL (3) NUMBER GLA PSF RENT PSF
- ----------- ------ --- --------- --------- ---------
1st Quarter (4) 60 353,520 $12.09 $13.40 $1.31
2nd Quarter 80 178,337 21.69 22.57 0.88
3rd Quarter (5) 94 500,163 12.79 13.19 0.40
4th Quarter -
-------------------------------------------------------------------
TOTAL OR AVERAGE 234 1,032,020 $14.09 $14.88 $0.79
===================================================================
TOTAL
ANNUALIZED ANNUALIZED ANNUALIZED
TENANT LEASING COSTS OF
RENEWAL (3) IMPROVEMENTS PSF COMMISSIONS PSF LEASING PSF
(1) (1)(2) (1)(2)
---------------- --------------- -----------
1st Quarter (4) $ - $ - $ -
2nd Quarter - -
3rd Quarter (5) 0.08 0.08
4th Quarter -
----------------------------------------------------------
TOTAL OR AVERAGE $0.04 $ - $0.04
==========================================================
(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, lease extensions and
modifications.
(4) Includes an anchor lease of 176,834 square feet for a base rent of $1.20 per
square foot. 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.
(5) Includes an anchor lease of 91,164 square feet for a base rent of $1.86 per
square foot. The other 93 renewal leases with 408,999 square feet had an
average previous base rent psf of $15.23 and an average new base rent psf of
$15.71 representing an increase of $0.48 in base rent psf.
PAGE 23
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
CAPITAL EXPENDITURES
Q3 04
(3 months ended September 30, 2004)
-----------------------------------------------------
RETAIL WHOLLY OWNED JOINT VENTURES TOTAL
- -------------------------------------------------- -----------------------------------------------------
New development projects $ 14,913 $ - $ 14,913
Redevelopment projects with incremental GLA 4,695,901 4,695,901
and/or Anchor Replacement - -
Renovation with no incremental GLA - -
Tenant allowances 1,210,474 138,835 1,349,309
Operational capital expenditures at properties: -
CAM expenditures 1,711,240 - 1,711,240
Non-CAM expenditures 1,090,374 10,613 1,100,987
------------ ---------- -------------
SUBTOTAL OPERATIONAL CAPITAL EXPENDITURES AT PROPERTIES $ 2,801,614 $ 10,613 $ 2,812,227
------------ ---------- -------------
TOTAL $ 8,722,902 $ 149,448 $ 8,872,350
------------ ---------- -------------
PAGE 24
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
Q304
ENCLOSED MALLS --------------------------------------------------------------
(Includes Only Owned Space) TOTAL TOTAL IN-LINE ONLY IN-LINE
W/ANCHOR W/ANCHOR (NON-ANCHOR) (NON-ANCHOR)
% LEASED % AVAILABLE % LEASED % AVAILABLE
--------------------------------------------------------------
Beaver Valley Mall 89.1% 10.9% 76.7% 22.3%
Capital City 98.4% 1.6% 97.2% 2.8%
Chambersburg Mall 93.6% 6.4% 86.3% 13.7%
Cherry Hill Mall 91.4% 8.6% 91.4% 8.6%
Crossroads Mall 95.2% 4.8% 88.8% 11.2%
Dartmouth Mall 94.8% 5.2% 91.3% 8.7%
Echelon Mall 37.2% 62.8% 63.9% 36.1%
Exton Square Mall 93.0% 7.0% 84.8% 15.2%
Francis Scott Key Mall 96.5% 3.5% 92.9% 7.1%
Jacksonville Mall 97.8% 2.2% 95.5% 4.5%
Laurel Mall 95.2% 4.8% 87.1% 12.9%
Lehigh Valley Mall 89.4% 10.6% 84.6% 15.4%
Logan Valley Mall 97.2% 2.8% 93.3% 6.7%
Lycoming Mall 89.7% 10.3% 80.0% 20.0%
Magnolia Mall 93.4% 6.6% 83.1% 16.9%
Moorestown Mall 94.5% 5.5% 87.5% 12.5%
New River Valley Mall 77.5% 22.5% 83.3% 16.7%
Nittany Mall 94.8% 5.2% 89.5% 10.5%
North Hanover Mall 93.2% 6.8% 81.4% 18.6%
Palmer Park Mall 99.2% 0.8% 97.2% 2.8%
Patrick Henry Mall 99.3% 0.7% 98.5% 1.5%
Phillipsburg Mall 90.6% 9.4% 78.1% 21.9%
Plymouth Meeting 73.2% 26.8% 89.6% 10.4%
Schuylkill Mall 76.5% 23.5% 69.2% 30.8%
South Mall 96.8% 3.2% 94.0% 6.0%
The Gallery at Market East 94.4% 5.6% 94.4% 5.6%
The Gallery II at Market East 81.6% 18.4% 70.2% 29.8%
The Mall at Prince Georges 86.2% 13.8% 87.3% 12.7%
Uniontown Mall 95.7% 4.3% 89.2% 10.8%
Valley Mall 99.2% 0.8% 98.5% 1.5%
Valley View Mall 93.9% 6.1% 91.4% 8.6%
Viewmont Mall 99.0% 1.0% 97.4% 2.6%
Washington Crown Center 93.7% 6.3% 88.3% 11.7%
Willow Grove Park 94.1% 5.9% 90.2% 9.8%
Wiregrass Mall 83.4% 16.6% 83.4% 16.6%
Wyoming Mall 97.4% 2.6% 92.5% 7.5%
- ------------------------------------------------------------------------------------------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE (1) 90.3% 9.7% 86.9% 13.1%
- ------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------
WHOLLY OWNED PROPERTIES (1) 90.2% 9.8% 87.0% 13.0%
JOINT VENTURE PROPERTIES 92.0% 8.0% 85.4% 14.6%
--------------------------------------------------------------
PRI-MANAGED (1) 90.2% 9.8% 87.0% 13.0%
NON PRI-MANAGED 92.0% 8.0% 85.4% 14.6%
--------------------------------------------------------------
SAME PROPERTIES/EXISTING 85.4% 14.6% 84.6% 15.4%
NEW 93.4% 6.6% 88.5% 11.5%
REDEVELOPMENT PROPERTIES 86.2% 13.8% 87.3% 12.7%
--------------------------------------------------------------
CONTINUING OPERATIONS (1) 90.8% 9.2% 87.5% 12.5%
DISCONTINUED OPERATIONS 76.5% 23.5% 69.2% 30.8%
--------------------------------------------------------------
% CHANGE
ENCLOSED MALLS --------------------------------------------------------------
(Includes Non-Anchor Owned Space) TOTAL TOTAL IN-LINE ONLY IN-LINE
W/ANCHOR W/ANCHOR (NON-ANCHOR) (NON-ANCHOR)
% LEASED % AVAILABLE % LEASED % AVAILABLE
--------------------------------------------------------------
Beaver Valley Mall -0.7% 0.7% -1.5% 1.5%
Capital City N/A N/A N/A N/A
Chambersburg Mall N/A N/A N/A N/A
Cherry Hill Mall -2.0% 2.0% -2.0% 2.0%
Crossroads Mall N/A N/A N/A N/A
Dartmouth Mall 13.4% -13.4% -1.8% 1.8%
Echelon Mall -15.0% 15.0% -6.5% 6.5%
Exton Square Mall -3.1% 3.1% -5.8% 5.8%
Francis Scott Key Mall N/A N/A N/A N/A
Jacksonville Mall N/A N/A N/A N/A
Laurel Mall -1.1% 1.1% -2.9% 2.9%
Lehigh Valley Mall -1.2% 1.2% -1.8% 1.8%
Logan Valley Mall N/A N/A N/A N/A
Lycoming Mall N/A N/A N/A N/A
Magnolia Mall 0.1% -0.1% 3.8% -3.8%
Moorestown Mall -1.7% 1.7% -3.9% 3.9%
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 0.7% -0.7% 2.2% -2.2%
Patrick Henry Mall N/A N/A N/A N/A
Phillipsburg Mall N/A N/A N/A N/A
Plymouth Meeting -1.0% 1.0% -2.2% 2.2%
Schuylkill Mall N/A N/A N/A N/A
South Mall N/A N/A N/A N/A
The Gallery at Market East 0.0% 0.0% 0.0% 0.0%
The Gallery II at Market East N/A N/A N/A N/A
The Mall at Prince Georges -2.6% 2.6% -5.6% 5.6%
Uniontown Mall N/A N/A N/A N/A
Valley Mall N/A N/A N/A N/A
Valley View 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
Willow Grove Park -0.9% 0.9% -1.5% 1.5%
Wiregrass Mall N/A N/A N/A N/A
Wyoming Mall N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE (1) 3.6% -3.6% -0.4% 0.4%
- ------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------
WHOLLY OWNED PROPERTIES (1) 5.5% -5.5% 0.0% 0.0%
JOINT VENTURE PROPERTIES -2.6% 2.6% -3.3% 3.3%
--------------------------------------------------------------
PRI-MANAGED (1) 4.6% -4.6% -0.3% 0.3%
NON PRI-MANAGED -1.2% 1.2% -2.1% 2.1%
--------------------------------------------------------------
SAME PROPERTIES/EXISTING -0.7% 0.7% -2.4% 2.4%
NEW -1.6% 1.6% -3.2% 3.2%
REDEVELOPMENT PROPERTIES -2.6% 2.6% -5.6% 5.6%
--------------------------------------------------------------
CONTINUING OPERATIONS (1) 4.1% -4.1% 0.1% -0.1%
DISCONTINUED OPERATIONS N/A N/A N/A N/A
--------------------------------------------------------------
Q303
ENCLOSED MALLS --------------------------------------------------------------
(Includes Non-Anchor Owned Space) TOTAL TOTAL IN-LINE ONLY IN-LINE
W/ANCHOR W/ANCHOR (NON-ANCHOR) (NON-ANCHOR)
% LEASED % AVAILABLE % LEASED % AVAILABLE
--------------------------------------------------------------
Beaver Valley Mall 89.8% 10.2% 78.1% 21.9%
Capital City N/A N/A N/A N/A
Chambersburg Mall N/A N/A N/A N/A
Cherry Hill Mall 93.3% 6.7% 93.3% 6.7%
Crossroads Mall N/A N/A N/A N/A
Dartmouth Mall 81.4% 18.6% 93.1% 6.9%
Echelon Mall 52.2% 47.8% 70.4% 29.6%
Exton Square Mall 96.1% 3.9% 90.5% 9.5%
Francis Scott Key Mall N/A N/A N/A N/A
Jacksonville Mall N/A N/A N/A N/A
Laurel Mall 96.3% 3.7% 89.9% 10.1%
Lehigh Valley Mall 90.7% 9.3% 86.4% 13.6%
Logan Valley Mall N/A N/A N/A N/A
Lycoming Mall N/A N/A N/A N/A
Magnolia Mall 91.9% 8.1% 79.3% 20.7%
Moorestown Mall 96.2% 3.8% 91.4% 8.6%
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 98.5% 1.5% 95.0% 5.0%
Patrick Henry Mall N/A N/A N/A N/A
Phillipsburg Mall N/A N/A N/A N/A
Plymouth Meeting 74.3% 25.7% 91.8% 8.2%
Schuylkill Mall N/A N/A N/A N/A
South Mall N/A N/A N/A N/A
The Gallery at Market East 94.5% 5.5% 94.5% 5.5%
The Gallery II at Market East N/A N/A N/A N/A
The Mall at Prince Georges 88.8% 11.2% 92.9% 7.1%
Uniontown Mall N/A N/A N/A N/A
Valley Mall N/A N/A N/A N/A
Valley View 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
Willow Grove Park 95.0% 5.0% 91.7% 8.3%
Wiregrass Mall N/A N/A N/A N/A
Wyoming Mall N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE (1) 86.7% 13.3% 87.4% 12.6%
- ------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------
WHOLLY OWNED PROPERTIES (1) 84.7% 15.3% 87.0% 13.0%
JOINT VENTURE PROPERTIES 94.6% 5.4% 88.7% 11.3%
--------------------------------------------------------------
PRI-MANAGED (1) 85.6% 14.4% 87.3% 12.7%
NON PRI-MANAGED 93.2% 6.8% 87.5% 12.5%
---------------------------------------------------------------
SAME PROPERTIES/EXISTING 86.1% 13.9% 87.0% 13.0%
NEW 95.0% 5.0% 91.7% 8.3%
REDEVELOPMENT PROPERTIES 88.8% 11.2% 92.9% 7.1%
--------------------------------------------------------------
CONTINUING OPERATIONS (1) 86.7% 13.3% 87.4% 12.6%
DISCONTINUED OPERATIONS N/A N/A N/A N/A
--------------------------------------------------------------
(1) The Mall at Prince Georges is classified as a redevelopment property and is
not included in the weighted average.
PAGE 25
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
ENCLOSED MALLS
(Includes Non-Anchor Owned Space) Q304
------------------------------------------------------------------------
AVG BASE RENT AVG % RENT ADDITIONAL AVG COMP OCCUP. COST
PSF(1) PSF(1) CHARGES PSF SALES PSF(2) RATIO
------------------------------------------------------------------------
Beaver Valley Mall $16.40 $0.47 $6.41 $241 9.66%
Capital City 22.34 0.88 6.43 345 8.59%
Chambersburg Mall 18.90 0.09 4.91 243 9.84%
Cherry Hill Mall 35.93 0.96 18.37 426 12.97%
Crossroads Mall 16.49 0.88 6.17 253 9.31%
Dartmouth Mall 19.98 1.41 7.73 398 7.32%
Echelon Mall 22.72 0.10 12.51 219 16.13%
Exton Square Mall 35.26 0.70 14.93 375 13.57%
Francis Scott Key Mall 20.59 0.65 6.92 274 10.28%
Jacksonville Mall 21.91 1.40 6.43 357 8.33%
Laurel Mall 13.83 0.49 5.44 260 7.60%
Lehigh Valley Mall 31.82 0.64 10.26 423 10.10%
Logan Valley Mall 20.82 1.38 7.28 300 9.83%
Lycoming Mall 14.76 1.08 5.02 262 7.97%
Magnolia Mall 24.69 0.38 10.16 323 10.91%
Moorestown Mall 24.06 0.77 14.04 374 10.39%
New River Valley Mall 19.48 0.49 4.10 256 9.40%
Nittany Mall 20.30 0.98 7.24 257 11.10%
North Hanover Mall 18.59 1.30 6.55 264 10.02%
Palmer Park Mall 21.12 1.13 10.07 335 9.65%
Patrick Henry Mall 31.22 1.76 10.10 439 9.81%
Phillipsburg Mall 22.78 0.62 10.89 284 12.08%
Plymouth Meeting 18.55 0.32 8.44 258 10.59%
Schuylkill Mall 9.47 0.18 3.25 210 6.15%
South Mall 14.57 0.32 4.96 263 7.55%
The Gallery at Market East 33.44 0.52 9.90 341 12.86%
The Gallery II at Market East 33.97 0.74 3.70 417 9.21%
The Mall at Prince Georges (3) 24.99 1.34 13.89 366 10.99%
Uniontown Mall 13.82 1.19 3.59 251 7.41%
Valley Mall 18.07 0.90 5.17 319 7.57%
Valley View Mall 23.00 0.57 13.00 309 11.84%
Viewmont Mall 22.23 1.66 7.19 345 9.01%
Washington Crown Center 16.60 0.13 4.56 248 8.59%
Willow Grove Park 38.09 0.30 19.35 411 14.05%
Wiregrass Mall 20.24 0.52 7.97 264 10.88%
Wyoming Mall 23.47 0.43 7.82 321 9.88%
- ------------------------------------------------------------------------------------------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE (1) $22.89 $0.75 $8.84 $323 10.06%
- ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------
WHOLLY OWNED PROPERTIES (1) $22.65 $0.76 $8.85 $318 10.14%
JOINT VENTURE PROPERTIES $26.15 $0.59 $8.74 $395 8.97%
------------------------------------------------------------------------
PRI-MANAGED (1) $22.65 $0.76 $8.85 $318 10.14%
NON PRI-MANAGED $26.15 $0.59 $8.74 $395 8.97%
------------------------------------------------------------------------
SAME PROPERTIES/EXISTING $25.72 $0.66 $11.24 $345 10.90%
NEW $21.04 $0.81 $7.27 $309 9.43%
REDEVELOPMENT PROPERTIES $24.99 $1.34 $13.89 $366 10.99%
------------------------------------------------------------------------
CONTINUING OPERATIONS (1) $23.24 $0.77 $8.99 $325 10.15%
DISCONTINUED OPERATIONS $9.47 $0.18 $3.25 $210 6.15%
------------------------------------------------------------------------
ENCLOSED MALLS
(Includes Non-Anchor Owned Space) % CHANGE
------------------------------------------------------------------------
AVG BASE RENT AVG % RENT ADDITIONAL AVG COMP OCCUP. COST
PSF PSF CHARGES PSF SALES PSF RATIO
------------------------------------------------------------------------
Beaver Valley Mall -6.6% 9.6% 21.6% -0.8% 0.1%
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 2.0% 16.0% 13.9% 3.1% 0.3%
Crossroads Mall N/A N/A N/A N/A N/A
Dartmouth Mall 7.6% 0.7% 1.2% 1.5% 0.3%
Echelon Mall -2.8% -51.3% 5.3% -9.5% 1.5%
Exton Square Mall 4.0% 36.8% 76.3% 3.3% 1.8%
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 5.6% -3.4% 15.8% -1.1% 0.6%
Lehigh Valley Mall 5.9% 5.3% 4.9% -2.0% 0.7%
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 1.4% -68.7% 16.5% 1.9% 0.1%
Moorestown Mall -1.3% 22.7% 10.6% 13.0% -1.0%
New River Valley Mall N/A N/A N/A N/A N/A
Nittany Mall N/A N/A N/A N/A N/A
North Hanover Mall N/A N/A N/A N/A N/A
Palmer Park Mall -0.9% -6.5% 8.0% 0.6% 0.1%
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 -1.7% -31.6% 3.1% -2.3% 0.2%
Schuylkill 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 4.0% 42.2% 121.2% -16.8% 3.8%
The Gallery II at Market East N/A N/A N/A N/A N/A
The Mall at Prince Georges (3) 7.1% 23.0% 31.7% -8.0% 2.2%
Uniontown Mall N/A N/A N/A N/A N/A
Valley Mall N/A N/A N/A N/A N/A
Valley View 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
Willow Grove Park 1.4% -14.5% 7.7% 1.7% 0.2%
Wiregrass Mall N/A N/A N/A N/A N/A
Wyoming Mall N/A N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE (1) -13.0% 17.6% -13.8% -7.2% -0.6%
- ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------
WHOLLY OWNED PROPERTIES (1) -15.6% 21.4% -17.2% -6.1% -1.1%
JOINT VENTURE PROPERTIES 8.6% -13.8% 4.4% 1.1% 0.5%
------------------------------------------------------------------------
PRI-MANAGED (1) -14.9% 17.2% -16.8% -6.0% -1.1%
NON PRI-MANAGED 6.0% 2.9% 7.0% -2.4% 0.7%
------------------------------------------------------------------------
SAME PROPERTIES/EXISTING 1.5% -0.5% 17.4% 0.8% 0.5%
NEW -44.0% 128.6% -59.5% -23.6% -4.4%
REDEVELOPMENT PROPERTIES 7.1% 23.0% 31.7% -8.0% 2.2%
------------------------------------------------------------------------
CONTINUING OPERATIONS (1) -11.7% 19.9% -12.4% -6.7% -0.5%
DISCONTINUED OPERATIONS N/A N/A N/A N/A N/A
------------------------------------------------------------------------
ENCLOSED MALLS
(Includes Non-Anchor Owned Space) Q303
------------------------------------------------------------------------
AVG BASE RENT AVG % RENT ADDITIONAL AVG COMP OCCUP. COST
PSF(1) PSF(1) CHARGES PSF SALES PSF(2) RATIO
------------------------------------------------------------------------
Beaver Valley Mall $17.56 $0.43 $5.27 $243 9.57%
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 35.24 0.83 16.12 413 12.64%
Crossroads Mall N/A N/A N/A N/A N/A
Dartmouth Mall 18.57 1.40 7.64 392 7.04%
Echelon Mall 23.38 0.20 11.88 242 14.65%
Exton Square Mall 33.91 0.51 8.47 363 11.82%
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 13.10 0.51 4.69 263 6.96%
Lehigh Valley Mall 30.05 0.61 9.78 432 9.37%
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 24.36 1.22 8.72 317 10.82%
Moorestown Mall 24.37 0.63 12.70 331 11.39%
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 21.30 1.21 9.33 333 9.56%
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 18.87 0.47 8.19 264 10.43%
Schuylkill 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 32.14 0.36 4.48 410 9.02%
The Gallery II at Market East N/A N/A N/A N/A N/A
The Mall at Prince Georges (3) 23.34 1.09 10.54 398 8.79%
Uniontown Mall N/A N/A N/A N/A N/A
Valley Mall N/A N/A N/A N/A N/A
Valley View 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
Willow Grove Park 37.55 0.35 17.96 404 13.83%
Wiregrass Mall N/A N/A N/A N/A N/A
Wyoming Mall N/A N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
ENCLOSED MALLS WEIGHTED AVERAGE (1) $26.32 $0.64 $10.26 $348 10.69%
- ------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------
WHOLLY OWNED PROPERTIES (1) $26.83 $0.63 $10.69 $339 11.25%
JOINT VENTURE PROPERTIES $24.09 $0.69 $8.37 $391 8.47%
------------------------------------------------------------------------
PRI-MANAGED (1) $26.62 $0.65 $10.63 $339 11.19%
NON PRI-MANAGED $24.68 $0.57 $8.17 $405 8.25%
------------------------------------------------------------------------
SAME PROPERTIES/EXISTING $25.33 $0.66 $9.58 $342 10.39%
NEW $37.55 $0.35 $17.96 $404 13.83%
REDEVELOPMENT PROPERTIES $23.34 $1.09 $10.54 $398 8.79%
------------------------------------------------------------------------
CONTINUING OPERATIONS (1) $26.32 $0.64 $10.26 $348 10.69%
DISCONTINUED OPERATIONS N/A N/A N/A N/A N/A
------------------------------------------------------------------------
(1) Base rent is actual for Q304. Additional charges and % rent are projections
for 2004.
(2) Average comparable sales for Q303 are actual.
(3) The Mall at Prince Georges is classified as a redevelopment property and is
not included in the weighted average.
PAGE 26
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
POWER CENTERS
(Includes Non-Anchor Owned Space)
Q304
-------------------------------------------
AVG BASE RENT AVG % RENT ADDITIONAL
PSF (1) PSF (1) CHARGES PSF
-------------------------------------------
Christiana Power Center $20.44 $ - $1.95
Creekview Shopping Center 14.37 - 2.80
Northeast Tower Center 14.53 - 3.71
Paxton Towne Centre 16.12 - 2.56
The Court at Oxford Valley 15.37 - 3.90
Red Rose Commons 13.86 0.06 3.21
Whitehall Mall 10.69 0.33 3.10
Metroplex Shopping Center 18.13 - 3.58
-------------------------------------------
POWER CENTERS WEIGHTED AVERAGE $15.49 $0.05 $3.22
-------------------------------------------
-------------------------------------------
WHOLLY OWNED PROPERTIES $16.16 $ - $2.75
JOINT VENTURE PROPERTIES $15.13 $0.07 $3.48
-------------------------------------------
PRI-MANAGED $16.16 $ - $2.75
NON PRI-MANAGED $15.13 $0.07 $3.48
-------------------------------------------
SAME PROPERTIES/EXISTING $15.49 $0.05 $3.22
-------------------------------------------
NEW N/A N/A N/A
REDEVELOPMENT PROPERTIES N/A N/A N/A
-------------------------------------------
% CHANGE
-------------------------------------------
AVG BASE RENT AVG % RENT ADDITIONAL
PSF PSF CHARGES PSF
-------------------------------------------
Christiana Power Center 5.5% N/A 6.1%
Creekview Shopping Center 0.2% N/A 2.1%
Northeast Tower Center 6.8% N/A 9.2%
Paxton Towne Centre 1.2% N/A -2.0%
The Court at Oxford Valley 1.6% -100.0% 3.5%
Red Rose Commons 4.8% 250.0% 11.2%
Whitehall Mall 0.5% -9.0% 3.0%
Metroplex Shopping Center 0.0% N/A 3.7%
-------------------------------------------
POWER CENTERS WEIGHTED AVERAGE 2.4% -5.6% 4.2%
-------------------------------------------
-------------------------------------------
WHOLLY OWNED PROPERTIES 3.9% N/A 1.1%
JOINT VENTURE PROPERTIES 1.6% -7.7% 5.2%
-------------------------------------------
PRI-MANAGED 3.9% N/A 1.1%
NON PRI-MANAGED 1.6% -7.7% 5.2%
-------------------------------------------
SAME PROPERTIES/EXISTING 2.4% -5.6% 4.2%
-------------------------------------------
NEW N/A N/A N/A
REDEVELOPMENT PROPERTIES N/A N/A N/A
-------------------------------------------
Q303
-------------------------------------------
AVG BASE RENT AVG % RENT ADDITIONAL
PSF (1) PSF (1) CHARGES PSF
-------------------------------------------
Christiana Power Center $19.37 $ - $1.84
Creekview Shopping Center 14.33 - 2.74
Northeast Tower Center 13.61 - 3.40
Paxton Towne Centre 15.93 - 2.61
The Court at Oxford Valley 15.13 0.03 3.77
Red Rose Commons 13.22 0.02 2.89
Whitehall Mall 10.64 0.36 3.01
Metroplex Shopping Center 18.13 - 3.45
-------------------------------------------
POWER CENTERS WEIGHTED AVERAGE $15.13 $0.05 $3.09
-------------------------------------------
-------------------------------------------
WHOLLY OWNED PROPERTIES $15.55 $ - $2.72
JOINT VENTURE PROPERTIES $14.89 $0.08 $3.31
-------------------------------------------
PRI-MANAGED $15.55 $ - $2.72
NON PRI-MANAGED $14.89 $0.08 $3.31
-------------------------------------------
SAME PROPERTIES/EXISTING $15.13 $0.05 $3.09
-------------------------------------------
NEW N/A N/A N/A
REDEVELOPMENT PROPERTIES N/A N/A N/A
-------------------------------------------
(1) Base rent is actual for Q304. Additional charges and % rent are projections
for 2004.
Q304
----------------------------------------------------------------
TOTAL TOTAL IN-LINE ONLY IN-LINE
W/ANCHOR % W/ANCHOR % (NON-ANCHOR) (NON-ANCHOR)
LEASED AVAILABLE % LEASED % AVAILABLE
----------------------------------------------------------------
Christiana Power Center 100.0% 0.0% 100.0% 0.0%
Creekview Shopping Center 100.0% 0.0% 100.0% 0.0%
Northeast Tower Center 89.7% 10.3% 75.4% 24.6%
Paxton Towne Centre 92.1% 7.9% 87.9% 12.1%
The Court at Oxford Valley 100.0% 0.0% 100.0% 0.0%
Red Rose Commons 99.2% 0.8% 99.2% 0.8%
Whitehall Mall 97.4% 2.6% 94.0% 6.0%
Metroplex Shopping Center 100.0% 0.0% 100.0% 0.0%
----------------------------------------------------------------
POWER CENTERS WEIGHTED AVERAGE 96.8% 3.2% 95.0% 5.0%
----------------------------------------------------------------
----------------------------------------------------------------
WHOLLY OWNED PROPERTIES 93.9% 6.1% 88.9% 11.1%
JOINT VENTURE PROPERTIES 99.1% 0.9% 98.6% 1.4%
----------------------------------------------------------------
PRI-MANAGED 93.9% 6.1% 88.9% 11.1%
NON PRI-MANAGED 99.1% 0.9% 98.6% 1.4%
----------------------------------------------------------------
SAME PROPERTIES/EXISTING 96.8% 3.2% 95.0% 5.0%
NEW N/A N/A N/A N/A
REDEVELOPMENT PROPERTIES N/A N/A N/A N/A
----------------------------------------------------------------
OCCUPANCY
CHANGE IN % OCCUPANCY
----------------------------------------------------------------
TOTAL TOTAL IN-LINE ONLY IN-LINE
W/ANCHOR % W/ANCHOR % (NON-ANCHOR) (NON-ANCHOR)
LEASED AVAILABLE % LEASED % AVAILABLE
----------------------------------------------------------------
Christiana Power Center 0.0% 0.0% 0.0% 0.0%
Creekview Shopping Center 0.0% 0.0% 0.0% 0.0%
Northeast Tower Center -10.3% 10.3% -24.6% 24.6%
Paxton Towne Centre 1.3% -1.3% 2.0% -2.0%
The Court at Oxford Valley 2.9% -2.9% 4.7% -4.7%
Red Rose Commons 0.0% 0.0% 0.0% 0.0%
Whitehall Mall -0.3% 0.3% -0.7% 0.7%
Metroplex Shopping Center 0.0% 0.0% 0.0% 0.0%
----------------------------------------------------------------
POWER CENTERS WEIGHTED AVERAGE -0.9% 0.9% -1.4% 1.4%
----------------------------------------------------------------
----------------------------------------------------------------
WHOLLY OWNED PROPERTIES -2.9% 2.9% -5.4% 5.4%
JOINT VENTURE PROPERTIES 0.7% -0.7% 1.0% -1.0%
----------------------------------------------------------------
PRI-MANAGED -2.9% 2.9% -5.4% 5.4%
NON PRI-MANAGED 0.7% -0.7% 1.0% -1.0%
----------------------------------------------------------------
SAME PROPERTIES/EXISTING -0.9% 0.9% -1.4% 1.4%
NEW N/A N/A N/A N/A
REDEVELOPMENT PROPERTIES N/A N/A N/A N/A
----------------------------------------------------------------
Q303
----------------------------------------------------------------
TOTAL TOTAL IN-LINE ONLY IN-LINE
W/ANCHOR % W/ANCHOR % (NON-ANCHOR) (NON-ANCHOR)
LEASED AVAILABLE % LEASED % AVAILABLE
----------------------------------------------------------------
Christiana Power Center 100.0% 0.0% 100.0% 0.0%
Creekview Shopping Center 100.0% 0.0% 100.0% 0.0%
Northeast Tower Center 100.0% 0.0% 100.0% 0.0%
Paxton Towne Centre 90.7% 9.3% 85.9% 14.1%
The Court at Oxford Valley 97.1% 2.9% 95.3% 4.7%
Red Rose Commons 99.2% 0.8% 99.2% 0.8%
Whitehall Mall 97.6% 2.4% 94.7% 5.3%
Metroplex Shopping Center 100.0% 0.0% 100.0% 0.0%
----------------------------------------------------------------
POWER CENTERS WEIGHTED AVERAGE 97.7% 2.3% 96.4% 3.6%
----------------------------------------------------------------
----------------------------------------------------------------
WHOLLY OWNED PROPERTIES 96.9% 3.1% 94.3% 5.7%
JOINT VENTURE PROPERTIES 98.4% 1.6% 97.6% 2.4%
----------------------------------------------------------------
PRI-MANAGED 96.9% 3.1% 94.3% 5.7%
NON PRI-MANAGED 98.4% 1.6% 97.6% 2.4%
----------------------------------------------------------------
SAME PROPERTIES/EXISTING 97.7% 2.3% 96.4% 3.6%
NEW N/A N/A N/A N/A
REDEVELOPMENT PROPERTIES N/A N/A N/A N/A
----------------------------------------------------------------
PAGE 27
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
STRIP CENTERS
(Includes Non-Anchor Owned Space)
Q304 % Change
------------------------------------------------ ------------------------------------------------
AVG BASE RENT AVG % RENT ADDITIONAL AVG BASE RENT AVG % RENT ADDITIONAL
PSF (1) PSF (1) CHARGES PSF PSF PSF CHARGES PSF
------------------------------------------------ ------------------------------------------------
Crest Plaza Shopping $15.83 $- $3.92 4.1% N/A 4.7%
Center
Festival at Exton 16.54 - 3.61 -0.1% N/A -7.2%
The Commons at Magnolia 12.98 - 1.96 1.3% -100.0% 24.5%
South Blanding Village 9.35 - 2.46 4.4% N/A -5.8%
Springfield Park I & II 17.71 - 5.42 -1.4% N/A 0.4%
------------------------------------------------ ------------------------------------------------
STRIP CENTERS WEIGHTED
AVERAGE $14.91 $- $3.42 1.3% -100.0% 0.5%
------------------------------------------------ ------------------------------------------------
------------------------------------------------ ------------------------------------------------
WHOLLY OWNED PROPERTIES $14.50 $- $3.13 2.0% -100.0% 1.1%
JOINT VENTURE PROPERTIES $17.71 $- $5.42 -1.4% N/A 0.4%
------------------------------------------------ ------------------------------------------------
PRI-MANAGED $14.91 $- $3.42 1.3% -100.0% 0.5%
NON PRI-MANAGED N/A N/A N/A N/A N/A N/A
------------------------------------------------ ------------------------------------------------
SAME PROPERTIES/EXISTING $14.91 $- $3.42 1.3% -100.0% 0.5%
NEW 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
------------------------------------------------ ------------------------------------------------
Q303
------------------------------------------------
AVG BASE RENT AVG % RENT ADDITIONAL
PSF (1) PSF (1) CHARGES PSF
------------------------------------------------
Crest Plaza Shopping Center $15.21 $- $3.74
Festival at Exton 16.56 - 3.89
The Commons at Magnolia 12.81 0.03 1.57
South Blanding Village 8.96 - 2.61
Springfield Park I & II 17.95 - 5.40
------------------------------------------------
STRIP CENTERS WEIGHTED
AVERAGE $14.72 $0.01 $3.41
------------------------------------------------
------------------------------------------------
WHOLLY OWNED PROPERTIES $14.21 $0.01 $3.09
JOINT VENTURE PROPERTIES $17.95 $- $5.40
------------------------------------------------
PRI-MANAGED $14.72 $0.01 $3.41
NON PRI-MANAGED N/A N/A N/A
------------------------------------------------
SAME PROPERTIES/EXISTING $14.72 $0.01 $3.41
NEW N/A N/A N/A
REDEVELOPMENT PROPERTIES N/A N/A N/A
------------------------------------------------
(1) Base rent is actual for Q304. Additional charges and % rent are projections
for 2004.
OCCUPANCY
Q304 CHANGE IN % OCCUPANCY
------------------------------------------------- -------------------------------------------------
IN-LINE IN-LINE
ONLY IN-LINE ONLY IN-LINE
TOTAL W/ TOTAL W/ (NON- (NON- TOTAL W/ TOTAL W/ (NON- (NON-
ANCHOR % ANCHOR % ANCHOR) % ANCHOR) % ANCHOR % ANCHOR % ANCHOR) % ANCHOR) %
LEASED AVAILABLE LEASED AVAILABLE LEASED AVAILABLE LEASED AVAILABLE
------------------------------------------------- -------------------------------------------------
Crest Plaza Shopping Center 96.4% 3.6% 93.8% 6.2% 11.7% -11.7% 20.3% -20.3%
Festival at Exton 94.0% 6.0% 89.8% 10.2% -1.5% 1.5% -2.6% 2.6%
The Commons at Magnolia 100.0% 0.0% 100.0% 0.0% 2.4% -2.4% 4.7% -4.7%
South Blanding Village 96.8% 3.2% 89.6% 10.4% -0.6% 0.6% -1.8% 1.8%
Springfield Park I & II 90.9% 9.1% 73.5% 26.5% 0.0% 0.0% 0.0% 0.0%
------------------------------------------------- -------------------------------------------------
STRIP CENTERS WEIGHTED
AVERAGE 95.4% 4.6% 90.0% 10.0% 2.1% -2.1% 4.4% -4.4%
------------------------------------------------- -------------------------------------------------
------------------------------------------------- -------------------------------------------------
WHOLLY OWNED PROPERTIES 96.6% 3.4% 93.1% 6.9% 2.6% -2.6% 5.2% -5.2%
JOINT VENTURE PROPERTIES 90.9% 9.1% 73.5% 26.5% N/A N/A N/A N/A
------------------------------------------------- -------------------------------------------------
PRI-MANAGED 95.4% 4.6% 90.0% 10.0% 2.1% -2.1% 4.4% -4.4%
NON PRI-MANAGED N/A N/A N/A N/A N/A N/A N/A N/A
------------------------------------------------- -------------------------------------------------
SAME PROPERTIES/EXISTING 95.4% 4.6% 90.0% 10.0% 2.1% -2.1% 4.4% -4.4%
NEW N/A N/A N/A N/A N/A N/A N/A N/A
REDEVELOPMENT PROPERTIES N/A N/A N/A N/A N/A N/A N/A N/A
------------------------------------------------- -------------------------------------------------
Q303
-------------------------------------------------
IN-LINE
ONLY IN-LINE
TOTAL W/ TOTAL W/ (NON- (NON-
ANCHOR % ANCHOR % ANCHOR) % ANCHOR) %
LEASED AVAILABLE LEASED AVAILABLE
-------------------------------------------------
Crest Plaza Shopping Center 84.7% 15.3% 73.5% 26.5%
Festival at Exton 95.5% 4.5% 92.3% 7.7%
The Commons at Magnolia 97.6% 2.4% 95.3% 4.7%
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 93.3% 6.7% 85.6% 14.4%
-------------------------------------------------
-------------------------------------------------
WHOLLY OWNED PROPERTIES 94.0% 6.0% 87.9% 12.1%
JOINT VENTURE PROPERTIES 90.9% 9.1% 73.5% 26.5%
-------------------------------------------------
PRI-MANAGED 93.3% 6.7% 85.6% 14.4%
NON PRI-MANAGED N/A N/A N/A N/A
-------------------------------------------------
SAME PROPERTIES/EXISTING 93.3% 6.7% 85.6% 14.4%
NEW N/A N/A N/A N/A
REDEVELOPMENT PROPERTIES N/A N/A N/A N/A
-------------------------------------------------
PAGE 28
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
RETAIL PORTFOLIO
(Includes Non-Anchor Owned Space)
Q304 % CHANGE
------------------------------------------------ ------------------------------------------------
ADDITIONAL ADDITIONAL
AVG BASE AVG % CHARGES AVG BASE AVG % CHARGES PSF
RENT PSF (1) RENT PSF (1) PSF (1) RENT PSF (1) RENT PSF (1) (1)
------------- ------------- ------------- ------------- ------------- -------------
ENCLOSED MALLS WEIGHTED
AVERAGE $22.89 $0.75 $8.84 -13.0% 17.6% -13.8%
POWER CENTERS WEIGHTED
AVERAGE $15.49 $0.05 $3.22 2.4% -5.6% 4.2%
STRIP CENTERS WEIGHTED
AVERAGE $14.91 $ - $3.42 1.3% -100.0% 0.5%
------------- ------------- ------------- ------------- ------------- -------------
RETAIL PORTFOLIO
WEIGHTED AVERAGE (2) $21.46 $0.62 $7.77 -4.1% 42.9% 0.2%
------------- ------------- ------------- ------------- ------------- -------------
WHOLLY OWNED PROPERTIES (2) $21.99 $0.69 $8.27 -9.4% 40.8% -7.5%
JOINT VENTURE PROPERTIES $18.75 $0.24 $5.22 2.0% -21.4% -0.4%
------------- ------------- ------------- ------------- ------------- -------------
PRI-MANAGED (2) $21.98 $0.69 $8.26 -8.9% 35.3% -7.5%
NON PRI-MANAGED $18.77 $0.24 $5.22 3.2% -0.8% 5.5%
------------- ------------- ------------- ------------- ------------- -------------
SAME PROPERTIES/EXISTING $21.86 $0.43 $8.24 1.5% -1.4% 14.8%
NEW $21.04 $0.81 $7.27 -44.0% 128.6% -59.5%
REDEVELOPMENT PROPERTIES $24.99 $1.34 $13.89 7.1% 23.0% 31.7%
------------- ------------- ------------- ------------- ------------- -------------
Q303
------------------------------------------------
AVG BASE
RENT AVG % ADDITIONAL
PSF (1) RENT PSF (1) CHARGES PSF (1)
------------- ------------- --------------
ENCLOSED MALLS WEIGHTED
AVERAGE $26.83 $0.63 $10.69
POWER CENTERS WEIGHTED
AVERAGE $15.13 $0.05 $3.09
STRIP CENTERS WEIGHTED
AVERAGE $14.72 $0.01 $3.41
------------- ------------- -------------
RETAIL PORTFOLIO
WEIGHTED AVERAGE (2) $22.37 $0.43 $7.75
------------- ------------- -------------
WHOLLY OWNED PROPERTIES (2) $24.27 $0.49 $8.95
JOINT VENTURE PROPERTIES $18.38 $0.31 $5.24
------------- ------------- -------------
PRI-MANAGED (2) $24.13 $0.51 $8.93
NON PRI-MANAGED $18.18 $0.25 $4.95
------------- ------------- -------------
SAME PROPERTIES/EXISTING $21.53 $0.43 $7.18
NEW $37.55 $0.35 $17.96
REDEVELOPMENT PROPERTIES $23.34 $1.09 $10.54
------------- ------------- -------------
(1) Base rent is actual for Q304. Additional charges and % rent are projections
for 2004.
(2) The Mall at Prince Georges is classified as Redevelopment Property and is
not included in the weighted average.
(Includes Only Owned Space)
OCCUPANCY
Q304 CHANGE IN % OCCUPANCY
------------------------------------------------- -------------------------------------------------
IN-LINE IN-LINE
ONLY IN-LINE ONLY IN-LINE
TOTAL W/ TOTAL W/ (NON- (NON- TOTAL W/ TOTAL W/ (NON- (NON-
ANCHOR % ANCHOR % ANCHOR)% ANCHOR) % ANCHOR % ANCHOR % ANCHOR) % ANCHOR) %
LEASED AVAILABLE LEASED AVAILABLE LEASED AVAILABLE LEASED AVAILABLE
--------- --------- --------- --------- --------- --------- --------- ---------
ENCLOSED MALLS
WEIGHTED AVERAGE 90.3% 9.7% 86.9% 13.1% 3.6% -3.6% -0.4% 0.4%
POWER CENTERS WEIGHTED
AVERAGE 97.8% 3.2% 95.0% 5.0% -0.9% 0.9% -1.4% 1.4%
STRIP CENTERS WEIGHTED
AVERAGE 94.4% 4.6% 90.0% 10.0% 2.1% -2.1% 4.4% -4.4%
--------- --------- --------- --------- --------- --------- --------- ---------
RETAIL PORTFOLIO
WEIGHTED AVERAGE (1) 91.3% 8.7% 88.2% 11.8% 1.5% -1.5% -1.7% 1.7%
--------- --------- --------- --------- --------- --------- --------- ---------
WHOLLY OWNED PROPERTIES (1) 90.6% 9.4% 87.3% 12.7% 3.5% -3.5% -1.0% 1.0%
JOINT VENTURE PROPERTIES 95.9% 4.1% 93.4% 6.6% -0.4% 0.4% -0.2% 0.2%
--------- --------- --------- --------- --------- --------- --------- ---------
PRI-MANAGED (1) 90.6% 9.4% 87.2% 12.8% 2.9% -2.9% -1.1% 1.1%
NON PRI-MANAGED 96.1% 3.9% 93.8% 6.2% -0.1% 0.1% -0.1% 0.1%
--------- --------- --------- --------- --------- --------- --------- ---------
SAME PROPERTIES/EXISTING 89.1% 10.9% 88.0% 12.0% -0.5% 0.5% -1.8% 1.8%
NEW 93.4% 6.6% 88.5% 11.5% -1.6% 1.6% -3.2% 3.2%
REDEVELOPMENT PROPERTIES 86.2% 13.8% 87.3% 12.7% -2.6% 2.6% -5.6% 5.6%
--------- --------- --------- --------- --------- --------- --------- ---------
Q303
-------------------------------------------------
IN-LINE
ONLY IN-LINE
TOTAL W/ TOTAL W/ (NON- (NON-
ANCHOR % ANCHOR % ANCHOR) % ANCHOR) %
LEASED AVAILABLE LEASED AVAILABLE
--------- --------- --------- ---------
ENCLOSED MALLS
WEIGHTED AVERAGE 86.7% 13.3% 87.4% 12.6%
POWER CENTERS WEIGHTED
AVERAGE 97.7% 2.3% 96.4% 3.6%
STRIP CENTERS WEIGHTED
AVERAGE 93.3% 6.7% 85.6% 14.4%
--------- --------- --------- ---------
RETAIL PORTFOLIO
WEIGHTED AVERAGE (1) 89.8% 10.2% 89.9% 10.1%
--------- --------- --------- ---------
WHOLLY OWNED PROPERTIES (1) 87.1% 12.9% 88.2% 11.8%
JOINT VENTURE PROPERTIES 96.3% 3.7% 93.6% 6.4%
--------- --------- --------- ---------
PRI-MANAGED (1) 87.7% 12.3% 88.3% 11.7%
NON PRI-MANAGED 96.2% 3.8% 94.0% 6.0%
--------- --------- --------- ---------
SAME PROPERTIES/EXISTING 89.6% 10.4% 89.8% 10.2%
NEW 95.0% 5.0% 91.7% 8.3%
REDEVELOPMENT PROPERTIES 88.8% 11.2% 92.9% 7.1%
--------- --------- --------- ---------
(1) The Mall at Prince Georges is classified as Redevelopment Property and is
not included in the weighted average.
* 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
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
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 16 properties representing approximately 4.2
million gross leasable square feet. PREIT-RUBIN Inc. also provides third party
owners with a full complement of management, leasing, asset management and
development services.
SUMMARY OF PORTFOLIO SERVICES
----------------------------------------------------------------------------
SEPTEMBER 30, 2004
----------------------------------------------------------------------------
RETAIL OFFICE/INDUSTRIAL TOTAL
----------------------------------------------------------------------------
# SQ FT # SQ FT # SQ FT
----------------------------------------------------------------------------
MANAGED PORTFOLIO
PREIT-Owned (1) 42 26,885,354 4 254,791 46 27,140,145
Non-PREIT Owned 11 2,770,188 3 757,238 14 3,527,426
----------------------------------------------------------------------------
TOTAL 53 29,655,542 7 1,012,029 60 30,667,571
----------------------------------------------------------------------------
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 6 4,081,249 - - 6 4,081,249
Non-PREIT Owned - - - - - -
----------------------------------------------------------------------------
TOTAL 6 4,081,249 - - 6 4,081,249
----------------------------------------------------------------------------
TOTAL PORTFOLIO
PREIT-Owned 48 30,966,603 4 254,791 52 31,221,394
Non-PREIT Owned 12 3,273,904 4 876,720 16 4,150,624
----------------------------------------------------------------------------
TOTAL 60 34,240,507 8 1,131,511 68 35,372,018
----------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
JUNE 30, 2004
- -------------------------------------------------------------------------------------------------------------
RETAIL OFFICE/INDUSTRIAL TOTAL
- -------------------------------------------------------------------------------------------------------------
# SQ FT # SQ FT # SQ FT
- -------------------------------------------------------------------------------------------------------------
MANAGED PORTFOLIO
PREIT-Owned (1) 47 29,501,868 4 254,791 51 29,756,659
Non-PREIT Owned 11 2,770,188 3 757,238 14 3,527,426
- -------------------------------------------------------------------------------------------------------------
TOTAL 58 32,272,056 7 1,012,029 65 33,284,085
- -------------------------------------------------------------------------------------------------------------
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 4,254,840 - - 7 4,254,840
Non-PREIT Owned - - - - - -
- -------------------------------------------------------------------------------------------------------------
TOTAL 7 4,254,840 - - 7 4,254,840
- -------------------------------------------------------------------------------------------------------------
TOTAL PORTFOLIO
PREIT-Owned 54 33,756,708 4 254,791 58 34,011,499
Non-PREIT Owned 12 3,273,904 4 876,720 16 4,150,624
- -------------------------------------------------------------------------------------------------------------
TOTAL 66 37,030,612 8 1,131,511 74 38,162,123
- -------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) IN CONTRACTS
- ---------------------------------------------------------------------------------------------------------------
RETAIL OFFICE/INDUSTRIAL TOTAL
- ---------------------------------------------------------------------------------------------------------------
# SQ FT # SQ FT # SQ FT
- ---------------------------------------------------------------------------------------------------------------
MANAGED PORTFOLIO
PREIT-Owned (1) (5) (2,616,514) - - (5) (2,616,514)
Non-PREIT Owned - - - - - -
- ---------------------------------------------------------------------------------------------------------------
TOTAL (5) (2,616,514) - - (5) (2,616,514)
- ---------------------------------------------------------------------------------------------------------------
LEASED PORTFOLIO
PREIT-Owned - - - - - -
Non-PREIT Owned - - - - - -
- ---------------------------------------------------------------------------------------------------------------
TOTAL - - - - - -
- ---------------------------------------------------------------------------------------------------------------
ASSET MANAGED PORTFOLIO
PREIT-Owned (1) (173,591) - - (1) (173,591)
Non-PREIT Owned - - - - - -
- ---------------------------------------------------------------------------------------------------------------
TOTAL (1) (173,591) - - (1) (173,591)
- ---------------------------------------------------------------------------------------------------------------
TOTAL PORTFOLIO
PREIT-Owned
Non-PREIT Owned (6) (2,790,105) - - (6) (2,790,105)
- - - - - -
- ---------------------------------------------------------------------------------------------------------------
TOTAL (6) (2,790,105) - - (6) (2,790,105)
- ---------------------------------------------------------------------------------------------------------------
(1) The decrease in the Managed Portfolio, PREIT-Owned is a result of the sale
of 5 non-core properties. The decrease in Asset Managed Portfolio,
PREIT-Owned is a result of the sale of PREIT's 60% interest in Rio Grande
Mall.
PAGE 30
PENNSYLVANIA REIT
FLASH REPORT (SEPTEMBER 30, 2004)
- ----------------------------
QUARTERLY COMPARISON
- --------------------
FINANCIAL STATEMENT
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
- ------------------------------------------------------------------------------------------------------------------------------------
Q3 04
(3 MONTHS ENDED 9/30/04)
- ------------------------------------------------------------------------------------------------------------------------------------
CORPORATE/OTHER
RETAIL PROPERTIES TOTAL % CHANGE
- ------------------------------------------------------------------------------------------------------------------------------------
Real Estate Revenues:
Same Store $47,986,137 $98,126 $48,084,263 4.9%
New 58,998,938 - 58,998,938 N/A
Redevelopment 3,970,546 - 3,970,546 N/A
Discontinued Operations 98,400 - 98,400 -93.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 111,054,020 98,126 111,152,146 106.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Operating Expenses:
Same Store 16,781,678 13,550 16,795,228 -4.5%
New 24,263,395 - 24,263,395 N/A
Redevelopment 1,210,032 - 1,210,032 N/A
Discontinued Operations 19,481 19,481 -97.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 42,274,586 13,550 42,288,136 101.9%
- ------------------------------------------------------------------------------------------------------------------------------------
NOI:
Same Store 31,204,459 84,576 31,289,035 10.8%
New 34,735,543 - 34,735,543 N/A
Redevelopment 2,760,514 - 2,760,514 N/A
Discontinued Operations 78,919 - 78,919 -89.3%
- ------------------------------------------------------------------------------------------------------------------------------------
NOI 68,779,434 84,576 68,864,010 108.8%
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue - 1,831,296 1,831,296 24.1%
Interest Income - 179,562 179,562 -17.3%
General & Administrative
Corporate Payroll and Benefits - (7,335,945) (7,335,945) 71.6%
Other G&A Expenses - (4,199,168) (4,199,168) 3.7%
- ------------------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 68,779,434 (9,439,679) 59,339,755 125.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Interest Expense (19,072,935) (2,066,196) (21,139,131) 84.4%
Depreciation and Amortization (23,673,732) (12,540) (23,686,272) 131.6%
Gain (loss) on Sale of Interests in RE 1,529,183 1,529,183 N/A
DISCONTINUED OPERATIONS
Income from Disposed Real Estate - - - N/A
Minority Interest of O.P. Unitholders - (197,095) (197,095) N/A
Gain (loss) on Disposition of Discontinued Operations - - N/A -
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - (197,095) (197,095) N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Minority Interest in Properties (53,268) - (53,268) -82.9%
Minority Interest of O.P. Unit Holders - (1,525,300) (1,525,300) 54.2%
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME 27,561,950 (13,240,810) 14,267,872 -59.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate (1,529,183) - (1,529,183) N/A
Depreciation and Amor. of Real Estate 23,616,632 (52,460) 23,564,172 130.4%
Dividends on preferred shares (3,403,125) (3,403,125) N/A
FFO Adjustments - 1,722,395 1,722,395 -47.9%
- ------------------------------------------------------------------------------------------------------------------------------------
FFO 49,649,399 (14,974,000) 34,622,131 138.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents (1,269,906) - (1,269,906) 65.9%
Recurring Capital Expenditures (2,812,227) - (2,812,227) 1117.0%
Tenant allowances (1,349,309) (1,349,309) N/A
Amortization of debt premium (4,829,622) (4,829,622) 177.2%
Amortization of above- and below-market lease intangibles 184,590 184,590 N/A
- ------------------------------------------------------------------------------------------------------------------------------------
FAD $39,572,925 (14,974,000) $24,545,657 115.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Dividends $21,688,390 70.5%
Share Price (at close) $38.66 15.6%
Weighted Average Number of Shares 35,695,353 83.2%
WA number of Shares and O.P. Units 40,131,231 86.3%
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCOME PER SHARE (BASIC) $0.30 -83.0%
FFO/SHARE AND O.P. UNITS $0.86 28.1%
FAD/SHARE AND O.P. UNITS $0.61 15.5%
DIVIDEND/SHARE AND O.P. UNITS $0.54 5.9%
- ------------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Q3 03
(3 MONTHS ENDED 9/30/03)
- -----------------------------------------------------------------------------------------------------------------------------------
CORPORATE/OTHER
RETAIL MULTIFAMILY PROPERTIES TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
Real Estate Revenues:
Same Store $45,739,159 $ - $87,781 $45,826,940
New 3,278,891 - - 3,278,891
Redevelopment 3,305,639 - - 3,305,639
Discontinued Operations 178,175 1,331,576 - 1,509,751
- -----------------------------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 52,501,864 1,331,576 87,781 53,921,221
- -----------------------------------------------------------------------------------------------------------------------------------
Operating Expenses:
Same Store 17,584,480 - 3,884 17,588,364
New 1,389,060 - - 1,389,060
Redevelopment 1,197,273 - - 1,197,273
Discontinued Operations 59,586 712,486 772,072
- -----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 20,230,399 712,486 3,884 20,946,769
- -----------------------------------------------------------------------------------------------------------------------------------
NOI:
Same Store 28,154,679 - 83,897 28,238,576
New 1,889,831 - - 1,889,831
Redevelopment 2,108,366 - - 2,108,366
Discontinued Operations 118,589 619,090 737,679
- -----------------------------------------------------------------------------------------------------------------------------------
NOI 32,271,465 619,090 83,897 32,974,452
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue - - 1,475,135 1,475,135
Interest Income - - 217,023 217,023
General & Administrative
Corporate Payroll and Benefits - - (4,274,156) (4,274,156)
Other G&A Expenses - - (4,049,052) (4,049,052)
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 32,271,465 619,090 (6,547,153) 26,343,402
- -----------------------------------------------------------------------------------------------------------------------------------
Interest Expense (11,243,044) (222,542) - (11,465,586)
Depreciation and Amortization (10,213,658) - (12,788) (10,226,446)
Gain (loss) on Sale of Interests in RE - 6,228,839 - 6,228,839
DISCONTINUED OPERATIONS
Income from Disposed Real Estate - - - -
Minority Interest of O.P. Unitholders - - (2,382,461) (2,382,461)
Gain (loss) on Disposition of Discontinued Operations - 27,725,759 - 27,725,759
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS - 27,725,759 (2,382,461) 25,343,298
- -----------------------------------------------------------------------------------------------------------------------------------
Minority Interest in Properties (310,751) - - (310,751)
Minority Interest of O.P. Unit Holders - - (989,253) (989,253)
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCOME 10,814,763 34,351,146 (9,931,655) 34,923,503
- -----------------------------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate - (33,954,598) - (33,954,598)
Depreciation and Amor. of Real Estate 10,213,658 - 12,788 10,226,446
Dividends on preferred shares - - - -
FFO Adjustments - - 3,306,714 3,306,714
- -----------------------------------------------------------------------------------------------------------------------------------
FFO 21,028,421 396,548 (6,612,153) 14,502,065
- -----------------------------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents (765,238) - - (765,238)
Recurring Capital Expenditures (108,438) (122,635) - (231,073)
Tenant allowances (591,471) (591,471)
Amortization of debt premium (1,742,283) (1,742,283)
Amortization of above- and below-market lease intangibles 237,319 - - 237,319
- -----------------------------------------------------------------------------------------------------------------------------------
FAD $18,058,310 $273,913 (6,612,153) $11,409,319
- -----------------------------------------------------------------------------------------------------------------------------------
Total Dividends $12,718,682
Share Price (at close) $33.45
Weighted Average Number of Shares 19,488,367
WA number of Shares and O.P. Units 21,537,479
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCOME PER SHARE (BASIC) $1.79
FFO/SHARE AND O.P. UNITS $0.67
FAD/SHARE AND O.P. UNITS $0.53
DIVIDEND/SHARE AND O.P. UNITS $0.51
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
- -----------------------------------------------------------------------------------------------------------------------------------
Q3 04
- -----------------------------------------------------------------------------------------------------------------------------------
CORPORATE/OTHER
RETAIL PROPERTIES TOTAL % CHANGE
- -----------------------------------------------------------------------------------------------------------------------------------
Investment in Real Estate, at cost $2,513,835,536 $35,646,218 $2,549,481,754 94.6%
Accumulated Depreciation (161,829,915) (2,114,391) (163,944,306) 68.4%
Advances to Partnership and JVs - - - N/A
Other Assets 248,904,286 58,772,990 307,677,276 75.7%
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $2,600,909,907 $92,304,817 $2,693,214,724 93.9%
- -----------------------------------------------------------------------------------------------------------------------------------
Mortgage Notes $1,366,090,242 $ - $1,366,090,242 84.8%
Line of Credit - 112,000,000 112,000,000 N/A
Acquisition Term Loan & Unsecured Line of Credit - - - N/A
Other Liabilities 49,496,838 32,241,800 81,738,638 88.6%
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $1,415,587,080 $144,241,800 $1,559,828,880 99.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Minority Interest $3,702,340 $129,072,186 $132,774,526 106.6%
Total Shareholders Equity - 1,000,611,318 1,000,611,318 84.5%
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDER EQUITY $1,419,289,420 $1,273,925,304 $2,693,214,724 93.9%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Q3 03
- -----------------------------------------------------------------------------------------------------------------------------------
CORPORATE/OTHER
RETAIL MULTIFAMILY PROPERTIES TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
Investment in Real Estate, at cost $1,289,890,542 $ 0 $20,178,064 $1,310,068,606
Accumulated Depreciation (95,312,157) - (2,064,231) (97,376,388)
Advances to Partnership and JVs - - 1,200,000 1,200,000
Other Assets 114,932,077 1,177,015 59,001,877 175,110,969
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $1,309,510,462 $1,177,015 $78,315,710 $1,389,003,187
- -----------------------------------------------------------------------------------------------------------------------------------
Mortgage Notes $739,061,360 $ 0 $ - $739,061,360
Line of Credit - - - -
Acquisition Term Loan & Unsecured Line of Credit - - - -
Other Liabilities 27,237,935 951,750 15,155,079 43,344,764
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $766,299,295 $951,750 $15,155,079 $782,406,124
- -----------------------------------------------------------------------------------------------------------------------------------
Minority Interest $5,991,467 - $58,270,123 $64,261,590
Total Shareholders Equity - - 542,335,473 542,335,473
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDER EQUITY $772,290,762 $951,750 $615,760,675 $1,389,003,187
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS
- -----------------------------------------------------------------------------------------------------------------------------------
Q3 04 Change Q3 03
- -----------------------------------------------------------------------------------------------------------------------------------
NOI/Investment in Real Estate 2.7% 0.2% 2.5%
Total Dividends/Total FFO 62.6% -25.1% 87.7%
Dividends/FFO per share 62.6% -13.1% 75.7%
- -----------------------------------------------------------------------------------------------------------------------------------
NOTE: RECONCILIATION TO GAAP IS ON PAGES 32 TO 35.
PAGE 31
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
BALANCE SHEET-RECONCILIATION TO GAAP
(Wholly Owned vs. JVs)
--------------------------------------------------------------------------------------------
SEPTEMBER 30, 2004
--------------------------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO SUBTOTAL ASSETS HELD TOTAL
TOTAL (1) EQUITY METHOD FOR SALE
--------------------------------------------------------------------------------------------
ASSETS
Investments in Real
Estate, at cost
Retail Properties $2,513,835,536 $(131,428,634) $2,382,406,902 $ (8,102,171) $2,374,304,731
Multifamily Properties - - - - -
Industrial Properties 2,504,211 - 2,504,211 - 2,504,211
Lend Held for Development 9,542,722 - 9,542,722 - 9,542,722
Construction In Progress 23,599,285 (1,693,762) 21,905,523 - 21,905,523
--------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
IN REAL ESTATE 2,549,481,754 (133,122,396) 2,416,359,358 (8,102,171) 2,408,257,187
Accumulated Depreciation (163,944,306) 31,124,661 (132,819,645) - (132,819,645)
--------------------------------------------------------------------------------------------
Net Real Estate 2,385,537,448 (101,997,735) 2,283,539,713 (8,102,171) 2,275,437,542
--------------------------------------------------------------------------------------------
Investment in and advances
to Partnerships and JVs - 28,700,295 28,700,295 - 28,700,295
--------------------------------------------------------------------------------------------
2,385,537,448 (73,297,440) 2,312,240,008 (8,102,171) 2,304,137,837
--------------------------------------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 35,824,104 (5,423,522) 30,400,582 30,400,582
Rents and Other Receivables 32,523,063 (6,894,906) 25,628,157 - 25,628,157
Assets held for sale 6,441,947 - 6,441,947 8,102,171 14,544,118
Intangible Assets (2) 163,274,661 - 163,274,661 - 163,274,661
Deferred Costs,
Prepaid Taxes & Exp. &
Other Assets 69,613,501 (11,015,164) 58,598,337 58,598,337
--------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 307,677,276 (23,333,592) 284,343,684 8,102,171 292,445,855
--------------------------------------------------------------------------------------------
TOTAL ASSETS 2,693,214,724 (96,631,032) 2,596,583,692 - 2,596,583,692
--------------------------------------------------------------------------------------------
LIABILITIES AND
SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 1,305,144,423 (108,055,084) 1,197,089,339 (17,228,605) 1,179,860,734
Mortgage Debt Premium (3) 60,945,819 - 60,945,819 - 60,945,819
Bank Loans Payable 112,000,000 - 112,000,000 - 112,000,000
Acquisition Term Loan
& Unsecured Line of Credit - - - - -
Assets held for sale 707,595 - 707,595 17,228,605 17,936,200
Other Liabilities (4) 81,031,043 11,424,052 92,455,095 92,455,095
--------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,559,828,880 (96,631,032) 1,463,197,848 - 1,463,197,848
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
Minority Interest 132,774,526 - 132,774,526 - 132,774,526
--------------------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial 36,094,566 - 36,094,566 - 36,094,566
Interest at $1 Par
Preferred Shares $0.01 Par 24,750 - 24,750 - 24,750
Capital Contributed
in Excess of Par 892,853,369 - 892,853,369 - 892,853,369
Restricted Stock (8,593,279) - (8,593,279) - (8,593,279)
Other Comprehensive Income (1,830,568) - (1,830,568) - (1,830,568)
Retained Earnings
(Distributions in Excess
of Net Income) 82,062,480 - 82,062,480 - 82,062,480
--------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 1,000,611,318 - 1,000,611,318 - 1,000,611,318
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $2,693,214,724 $(96,631,032) $2,596,583,692 $ - $2,596,583,692
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
DECEMBER 31, 2003
--------------------------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO SUBTOTAL ASSETS HELD TOTAL
TOTAL (1) EQUITY METHOD FOR SALE
--------------------------------------------------------------------------------------------
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
Lend 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
--------------------------------------------------------------------------------------------
Other Assets:
Cash and Cash Equivalents 46,883,041 (3,905,956) 42,977,085 - 42,977,085
Rents and Other Receivables 35,665,968 (7,991,132) 27,674,836 - 27,674,836
Assets held for sale 37,686,662 - 37,686,662 118,887,475 156,574,137
Intangible Assets (2) 181,544,375 - 181,544,375 - 181,544,375
Deferred Costs,
Prepaid Taxes & Exp. &
Other Assets 67,358,715 (11,942,821) 55,415,894 - 55,415,894
--------------------------------------------------------------------------------------------
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 (3) 75,488,243 75,488,243 (4,361,443) 71,126,800
Bank Loans Payable 170,000,000 - 170,000,000 - 170,000,000
Acquisition Term Loan
& Unsecured Line of Credit - - - - -
Assets held for sale 5,840,385 - 5,840,385 65,500,150 71,340,535
Other Liabilities (4) 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
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
SEPTEMBER 30, 2003
--------------------------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO SUBTOTAL ASSETS HELD TOTAL
TOTAL (1) EQUITY METHOD FOR SALE
--------------------------------------------------------------------------------------------
ASSETS
Investments in Real
Estate, at cost
Retail Properties $1,289,890,542 $(146,787,604) $1,143,102,938 $ - $1,143,102,938
Multifamily Properties - - - - -
Industrial Properties 2,504,211 - 2,504,211 - 2,504,211
Lend Held for Development
Construction In Progress 17,673,853 (1,563,289) 16,110,564 - 16,110,564
--------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
IN REAL ESTATE 1,310,068,606 (148,350,893) 1,161,717,713 - 1,161,717,713
Accumulated Depreciation (97,376,388) 36,454,134 (60,922,254) (60,922,254)
--------------------------------------------------------------------------------------------
Net Real Estate 1,212,692,218 (111,896,759) 1,100,795,459 - 1,100,795,459
--------------------------------------------------------------------------------------------
Investment in and advances
to Partnerships and JVs 1,200,000 14,691,677 15,891,677 - 15,891,677
--------------------------------------------------------------------------------------------
1,213,892,218 (97,205,082) 1,116,687,136 - 1,116,687,136
Other Assets:
Cash and Cash Equivalents 43,512,963 (5,113,326) 38,399,637 - 38,399,637
Rents and Other Receivables 21,909,843 (8,570,389) 13,339,454 - 13,339,454
Assets held for sale - - - - -
Intangible Assets (2) 55,957,597 - 55,957,597 - 55,957,597
Deferred Costs,
Prepaid Taxes & Exp. &
Other Assets 53,730,566 (12,102,886) 41,627,680 - 41,627,680
--------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 175,110,969 (25,786,601) 149,324,368 - 149,324,368
--------------------------------------------------------------------------------------------
TOTAL ASSETS 1,389,003,187 (122,991,683) 1,266,011,504 - 1,266,011,504
--------------------------------------------------------------------------------------------
LIABILITIES AND
SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable 717,818,358 (118,525,862) 599,292,496 - 599,292,496
Mortgage Debt Premium (3) 21,243,002 - 21,243,002 - 21,243,002
Bank Loans Payable - - - - -
Acquisition Term Loan
& Unsecured Line of Credit - - - - -
Assets held for sale 951,750 (36,458) 915,292 - 915,292
Other Liabilities (4) 42,393,014 (4,429,363) 37,963,651 - 37,963,651
--------------------------------------------------------------------------------------------
TOTAL LIABILITIES 782,406,124 (122,991,683) 659,414,441 - 659,414,441
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
Minority Interest 64,261,590 - 64,261,590 - 64,261,590
--------------------------------------------------------------------------------------------
Shareholders' Equity:
Shares of Beneficial
Interest at $1 Par 23,480,595 - 23,480,595 - 23,480,595
Preferred Shares $0.01 Par
Capital Contributed
in Excess of Par 407,738,529 - 407,738,529 - 407,738,529
Restricted Stock (3,901,106) - (3,901,106) - (3,901,106)
Other Comprehensive Income (1,928,590) - (1,928,590) - (1,928,590)
Retained Earnings
(Distributions in Excess
of Net Income) 116,946,045 - 116,946,045 - 116,946,045
--------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 542,335,473 - 542,335,473 - 542,335,473
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,389,003,187 $(122,991,683) $1,266,011,504 $ - $1,266,011,504
--------------------------------------------------------------------------------------------
(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) Includes value of acquired in-place leases and above-market value of leases
recorded in connection with the acquisition of properties since 2002.
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 including Deficit JV Investments.
PAGE 32
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
INCOME STATEMENT-RECONCILIATION TO GAAP (1)
QUARTERLY COMPARISON
(Wholly Owned vs. JV's)
Q3 04
(3 MONTHS ENDED 9/30/04)
------------------------------------------------------------------------------------------
ADJUSTMENTS
TO
COMBINED EQUITY ASSETS HELD TOTAL %
TOTAL (2) METHOD SUBTOTAL FOR SALE TOTAL CHANGE
-------------------------------------------------------------------------------------------
REAL ESTATE OPERATING
REVENUES
Base Rents (Net of
Vacancies) $70,621,109 $(5,171,295) $65,449,814 $(4,388,080) $61,061,734 113.2%
Straight-Lining of Base
Rents 1,269,906 (853) 1,269,053 $(57,210) 1,211,843 76.9%
Percentage Rents 1,873,163 (53,063) 1,820,100 $(173,169) 1,646,931 250.9%
Expense Reimbursables 33,424,615 (1,335,661) 32,088,954 $(2,218,573) 29,870,381 120.4%
Lease Termination 1,690,536 - 1,690,536 - 1,690,536 N/A
Other Real Estate Revenues 2,272,817 (18,637) 2,254,180 (190,468) 2,063,712 249.0%
-------------------------------------------------------------------------------------------
TOTAL REVENUES 111,152,146 (6,579,509) 104,572,637 (7,027,500) 97,545,137 121.8%
-------------------------------------------------------------------------------------------
REAL ESTATE OPERATING
EXPENSES
Operating and
Maintenance 32,294,350 (1,360,094) 30,934,256 (3,650,643) 27,283,613 119.3%
Real Estate Taxes 9,993,786 (710,170) 9,283,616 (758,593) 8,525,023 80.4%
-------------------------------------------------------------------------------------------
TOTAL EXPENSES 42,288,136 (2,070,264) 40,217,872 (4,409,236) 35,808,636 108.6%
-------------------------------------------------------------------------------------------
NET OPERATING INCOME 68,864,010 (4,509,245) 64,354,765 (2,618,264) 61,736,501 130.3%
-------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES)
Management Company
Revenue 1,831,296 - 1,831,296 1,831,296 24.1%
Interest Income 179,562 - 179,562 179,562 -17.3%
GENERAL &
ADMINISTRATIVE:
Corporate Payroll and
Benefits (7,335,945) - (7,335,945) (7,335,945) 71.6%
Other G&A Expenses (4,199,168) - (4,199,168) (4,199,168) 3.7%
-------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST
EXPENSES, TAXES,
DEPRECIATION AND
AMORTIZATION 59,339,755 (4,509,245) 54,830,510 (2,618,264) 52,212,246 158.8%
-------------------------------------------------------------------------------------------
Interest Expense (1) (21,139,131) 2,010,883 (19,128,248) 834,742 (18,293,506) 115.6%
Depreciation &
Amortization (23,686,272) 1,002,577 (22,683,695) - (22,683,695) 146.8%
-------------------------------------------------------------------------------------------
TOTAL OTHER INCOME
(EXPENSES) (44,825,403) 3,013,460 (41,811,943) 834,742 (40,977,201) 131.8%
-------------------------------------------------------------------------------------------
EQUITY IN INCOME OF
PARTNERSHIPS AND JVS - 1,495,785 1,495,785 1,495,785
-------------------------------------------------------------------------------------------
Gains (losses) on sales
of interests in Real
Estate 1,529,183 - 1,529,183 - 1,529,183 N/A
-------------------------------------------------------------------------------------------
Income before Minority
Interest 16,043,535 - 16,043,535 (1,783,522) 14,260,013 35.2%
-------------------------------------------------------------------------------------------
Minority Interest in
Properties (53,268) - (53,268) 5,038 (48,230)
-------------------------------------------------------------------------------------------
Minority Interest of
O.P. Unitholders (1,525,300) - (1,525,300) - (1,525,300) 54.2%
-------------------------------------------------------------------------------------------
Income from Operations 14,464,967 - 14,464,967 (1,778,484) 12,686,483 37.2%
-------------------------------------------------------------------------------------------
DISCONTINUED OPERATIONS:
Income from Discontinued
Operations - - - 1,783,522 1,783,522 438.0%
Equity in Income of
partnerships and JVs -
Minority interest in
properties - (5,038) (5,038)
Minority Interest of
O.P. Unitholders (197,095) - (197,095) (197,095) N/A
Gain (losses) on
Disposition of
Discontinued Operations - - - - N/A
-------------------------------------------------------------------------------------------
TOTAL DISCONTINUED
OPERATIONS (197,095) - (197,095) 1,778,484 1,581,389 N/A
-------------------------------------------------------------------------------------------
Extraordinary item (Loss
on early extinguishment
of debt) - - - - - N/A
--------------------------------------------------------------------------------------------
NET INCOME $14,267,872 $ - $14,267,872 $ - $14,267,872 -59.1%
-------------------------------------------------------------------------------------------
Q3 03
(3 MONTHS ENDED 9/30/03)
---------------------------------------------------------------------------
ADJUSTMENTS
TO
COMBINED EQUITY ASSETS HELD
TOTAL (3) METHOD SUBTOTAL FOR SALE TOTAL
---------------------------------------------------------------------------
REAL ESTATE OPERATING
REVENUES
Base Rents (Net of
Vacancies) $36,054,898 $(6,479,632) $29,575,266 $(929,099) $28,646,167
Straight-Lining of Base
Rents 765,238 (80,188) 685,050 - 685,050
Percentage Rents 544,610 (75,212) 469,398 469,398
Expense Reimbursables 15,695,778 (2,142,618) 13,553,160 - 13,553,160
Lease Termination 29,393 - 29,393 (264) 27,129
Other Real Estate Revenues 831,304 (178,531) 652,773 (61,527) 591,246
---------------------------------------------------------------------------
TOTAL REVENUES 53,921,221 (8,956,181) 44,965,040 (992,890) 43,972,150
---------------------------------------------------------------------------
REAL ESTATE OPERATING
EXPENSES
Operating and
Maintenance 15,370,354 (2,480,268) 12,890,086 (449,158) 12,440,928
Real Estate Taxes 5,576,415 (807,631) 4,768,784 (42,536) 4,726,248
---------------------------------------------------------------------------
TOTAL EXPENSES 20,946,769 (3,287,899) 17,658,870 (491,694) 17,167,176
---------------------------------------------------------------------------
NET OPERATING INCOME 32,974,452 (5,668,282) 27,306,170 (501,196) 26,804,974
---------------------------------------------------------------------------
OTHER INCOME (EXPENSES)
Management Company
Revenue 1,475,135 - 1,475,135 - 1,475,135
Interest Income 217,023 - 217,023 - 217,023
GENERAL &
ADMINISTRATIVE:
Corporate Payroll (4,274,156) - (4,274,156) - (4,274,156)
Other G&A Expenses (4,049,052) - (4,049,052) - (4,049,052)
---------------------------------------------------------------------------
EARNINGS BEFORE INTEREST
EXPENSES, TAXES,
DEPRECIATION AND
AMORTIZATION 26,343,402 (5,668,282) 20,675,120 (501,196) 20,173,924
---------------------------------------------------------------------------
Interest Expense (1) (11,465,586) 2,812,706 (8,652,880) 169,696 (8,483,184)
Depreciation &
Amortization (10,226,446) 1,034,646 (9,191,800) - (9,191,800)
---------------------------------------------------------------------------
TOTAL OTHER INCOME
(EXPENSES) (21,692,032) 3,847,352 (17,844,680) 169,696 (17,674,984)
---------------------------------------------------------------------------
EQUITY IN INCOME OF
PARTNERSHIPS AND JVS 1,820,930 1,820,930 1,820,930
---------------------------------------------------------------------------
Gains (losses) on sales
of interests in Real
Estate 6,228,839 - 6,228,839 - 6,228,839
---------------------------------------------------------------------------
Income before Minority
Interest 10,880,209 - 10,880,209 (331,500) 10,548,709
---------------------------------------------------------------------------
Minority Interest in
Properties (310,751) (310,751) (310,751)
---------------------------------------------------------------------------
Minority Interest of
O.P. Unitholders (989,253) - (989,253) - (989,253)
---------------------------------------------------------------------------
Income from Operations 9,580,205 - 9,580,205 (331,500) 9,248,705
---------------------------------------------------------------------------
DISCONTINUED OPERATIONS:
Income from Discontinued
Operations - - - 331,500 331,500
Equity in Income of
partnerships and JVs -
Minority interest in
properties
Minority Interest of
O.P. Unitholders (2,382,461) - (2,382,461) - (2,382,461)
Gain (losses) on
Disposition of
Discontinued Operations 27,725,759 - 27,725,759 - 27,725,759
---------------------------------------------------------------------------
TOTAL DISCONTINUED
OPERATIONS 25,343,298 - 25,343,298 331,500 25,674,798
---------------------------------------------------------------------------
Extraordinary item (Loss
on early extinguishment
of debt) - - - - -
---------------------------------------------------------------------------
NET INCOME $34,923,503 $ - $34,923,503 $ - $34,923,503
---------------------------------------------------------------------------
(1) Capitalized interest expense for the line of credit and construction loans
of $418,715 is not included in the quarter ended 9/30/04 and $324,187 is not
included in the quarter ended 9/30/03.
(2) 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
FLASH REPORT-RECONCILIATION TO GAAP (SEPTEMBER 30, 2004)
QUARTERLY COMPARISON
FINANCIAL STATEMENT
- -----------------------------------------------------------------------------------------------------------------------------------
Q3 04
(3 MONTHS ENDED 9/30/04)
- -----------------------------------------------------------------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO SUBTOTAL ASSETS HELD TOTAL
TOTAL EQUITY METHOD FOR SALE
- -----------------------------------------------------------------------------------------------------------------------------------
Real Estate Revenues:
Same Store $48,084,263 $(6,481,109) $41,603,154 $ - $41,603,154
New 58,998,938 - 58,998,938 - 58,998,938
Redevelopment 3,970,546 - 3,970,546 - 3,970,546
Discontinued 98,400 (98,400) - (7,027,500) (7,027,500)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 111,152,146 (6,579,509) 104,572,637 (7,027,500) 97,545,137
- -----------------------------------------------------------------------------------------------------------------------------------
Operating Expenses:
Same Store 16,795,228 (2,050,783) 14,744,445 - 14,744,445
New 24,263,395 - 24,263,395 - 24,263,395
Redevelopment 1,210,032 - 1,210,032 - 1,210,032
Discontinued 19,481 (19,481) - (4,409,236) (4,409,236)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 42,288,136 (2,070,264) 40,217,872 (4,409,236) 35,808,636
- -----------------------------------------------------------------------------------------------------------------------------------
NOI:
Same Store 31,289,035 (4,430,326) 26,858,709 - 26,858,709
New 34,735,543 - 34,735,543 - 34,735,543
Redevelopment 2,760,514 - 2,760,514 - 2,760,514
Discontinued 78,919 (78,919) - (2,618,264) (2,618,264)
- -----------------------------------------------------------------------------------------------------------------------------------
NOI 68,864,010 (4,509,245) 64,354,765 (2,618,264) 61,736,501
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue 1,831,296 - 1,831,296 - 1,831,296
Interest Income 179,562 - 179,562 - 179,562
General & Administrative:
Corporate Payroll and Benefits (7,335,945) - (7,335,945) - (7,335,945)
Other G&A Expenses (4,199,168) - (4,199,168) - ( 4,199,168)
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 59,339,755 (4,509,245) 54,830,510 (2,618,264) 52,212,246
- -----------------------------------------------------------------------------------------------------------------------------------
Interest Expense (21,139,131) 2,010,883 (19,128,248) $834,742 (18,293,506)
Depreciation and Amortization (23,686,272) 1,002,577 (22,683,695) - (22,683,695)
EQUITY IN INCOME OF PARTNERSHIP AND JVS - 1,495,785 1,495,785 - 1,495,785
Gain (loss) on Sale of Interests in RE 1,529,183 - 1,529,183 - 1,529,183
DISCONTINUED OPERATIONS: - - -
Income from Disposed Real Estate - - - 1,783,522 1,783,522
Equity in income of partnership and JVs - - - - -
Minority Interest in properties - - - (5,038) (5,038)
Minority Interest of O.P. Unitholders (197,095) - (197,095) - (197,095)
Gain (loss) on Disposition of
Discontinued Operations - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS (197,095) - (197,095) 1,778,484 1,581,389
- -----------------------------------------------------------------------------------------------------------------------------------
Minority Interest in Properties (53,268) - (53,268) 5,038 (48,230)
Extraordinary item (Loss on early
extinguishment of debt) - - - - -
Minority Interest of OP Unit Holders (1,525,300) - (1,525,300) - (1,525,300)
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCOME 14,267,872 - 14,267,872 - 14,267,872
- -----------------------------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate (1,529,183) - (1,529,183) - (1,529,183)
Depreciation and Amor. of Real Estate 23,564,172 - 23,564,172 - 23,564,172
Dividends on preferred shares (3,403,125) - (3,403,125) - (3,403,125)
FFO Adjustments 1,722,395 - 1,722,395 - 1,722,395
- -----------------------------------------------------------------------------------------------------------------------------------
FFO 34,622,131 - 34,622,131 - 34,622,131
- -----------------------------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents (1,269,906) - (1,269,906) - (1,269,906)
Recurring Capital Expenditures (2,812,227) - (2,812,227) - (2,812,227)
Tenant allowances (1,349,309) - (1,349,309) - (1,349,309)
Amortization of Debt Premium (4,829,622) - (4,829,622) - (4,829,622)
Amortization of above- and below-market
lease intangibles 184,590 - 184,590 - 184,590
- -----------------------------------------------------------------------------------------------------------------------------------
FAD $24,545,657 $ - $24,545,657 $ - $24,545,657
- -----------------------------------------------------------------------------------------------------------------------------------
Total Dividends $21,688,390
Share Price (at close) $38.66
Weighted Average Number of Shares 35,695,353
WA number of Shares and OP Units 40,131,231
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCOME PER SHARE (BASIC) $0.30
FFO/SHARE AND OP UNITS $0.86
FAD/SHARE AND OP UNITS $0.61
DIVIDEND/SHARE AND OP UNITS $0.54
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Q3 03
(3 MONTHS ENDED 9/30/03)
- -----------------------------------------------------------------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO SUBTOTAL ASSETS HELD TOTAL
TOTAL EQUITY METHOD FOR SALE
- -----------------------------------------------------------------------------------------------------------------------------------
Real Estate Revenues:
Same Store $45,826,940 $(7,263,123) $38,563,817 $ - $38,563,817
New 3,278,891 (1,176,197) 2,102,694 - 2,102,694
Redevelopment 3,305,639 - 3,305,639 - 3,305,639
Discontinued 1,509,751 (516,861) 992,890 (992,890) -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Real Estate Revenues 53,921,221 (8,956,181) 44,965,040 (992,890) 43,972,150
- -----------------------------------------------------------------------------------------------------------------------------------
Operating Expenses:
Same Store 17,588,364 (2,286,514) 15,301,850 - 15,301,850
New 1,389,060 (721,007) 668,053 - 668,053
Redevelopment 1,197,273 - 1,197,273 - 1,197,273
Discontinued 772,072 (280,378) 491,694 (491,694) -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 20,946,769 (3,287,899) 17,658,870 (491,694) 17,167,176
- -----------------------------------------------------------------------------------------------------------------------------------
NOI:
Same Store 28,238,576 (4,976,609) 23,261,967 - 23,261,967
New 1,889,831 (455,190) 1,434,641 - 1,434,641
Redevelopment 2,108,366 - 2,108,366 - 2,108,366
Discontinued 737,679 (236,483) 501,196 (501,196) -
- -----------------------------------------------------------------------------------------------------------------------------------
NOI 32,974,452 (5,668,282) 27,306,170 (501,196) 26,804,974
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSES):
Management Company Revenue 1,475,135 - 1,475,135 - 1,475,135
Interest Income 217,023 - 217,023 - 217,023
General & Administrative:
Corporate Payroll and Benefits (4,274,156) - (4,274,156) - (4,274,156)
Other G&A Expenses (4,049,052) - (4,049,052) - (4,049,052)
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INTEREST EXPENSES, TAXES,
DEPRECIATION AND AMORTIZATION 26,343,402 (5,668,282) 20,675,120 (501,196) 20,173,924
- -----------------------------------------------------------------------------------------------------------------------------------
Interest Expense (11,465,586) 2,812,706 (8,652,880) 169,696 (8,483,184)
Depreciation and Amortization (10,226,446) 1,034,646 (9,191,800) - (9,191,800)
EQUITY IN INCOME OF PARTNERSHIP AND JVS 1,820,930 1,820,930 - 1,820,930
Gain (loss) on Sale of Interests in RE 6,228,839 - 6,228,839 - 6,228,839
DISCONTINUED OPERATIONS: - - - -
Income from Disposed Real Estate - - - 331,500 331,500
Equity in income of partnership and JVs - - - - -
Minority Interest in properties
Minority Interest of O.P. Unitholders (2,382,461) - (2,382,461) - (2,382,461)
Gain (loss) on Disposition of
Discontinued Operations 27,725,759 - 27,725,759 - 27,725,759
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISCONTINUED OPERATIONS 25,343,298 - 25,343,298 331,500 25,674,798
- -----------------------------------------------------------------------------------------------------------------------------------
Minority Interest in Properties (310,751) - (310,751) - (310,751)
Extraordinary item (Loss on early
extinguishment of debt) - - - - -
Minority Interest of OP Unit Holders (989,253) - (989,253) - (989,253)
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCOME 34,923,503 - 34,923,503 - 34,923,503
- -----------------------------------------------------------------------------------------------------------------------------------
Gain on Sale of Real Estate (33,954,598) - (33,954,598) - (33,954,598)
Depreciation and Amor. of Real Estate 10,226,446 - 10,226,446 - 10,226,446
Dividends on preferred shares - - - - -
FFO Adjustments 3,306,714 - 3,306,714 - 3,306,714
- -----------------------------------------------------------------------------------------------------------------------------------
FFO 14,502,065 - 14,502,065 - 14,502,065
- -----------------------------------------------------------------------------------------------------------------------------------
Adj. Straight Lining of Base Rents (765,238) - (765,238) - (765,238)
Recurring Capital Expenditures (231,073) - (231,073) - (231,073)
Tenant allowances (591,471) - (591,471) - (591,471)
Amortization of Debt Premium (1,742,283) - (1,742,283) - (1,742,283)
Amortization of above- and below-market
lease intangibles 237,319 - - - 237,319
- -----------------------------------------------------------------------------------------------------------------------------------
FAD $11,409,319 $ - $11,172,000 $ - $11,409,319
- -----------------------------------------------------------------------------------------------------------------------------------
Total Dividends $12,718,682
Share Price (at close) $33.45
Weighted Average Number of Shares 19,488,367
WA number of Shares and OP Units 21,537,479
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCOME PER SHARE (BASIC) $1.79
FFO/SHARE AND OP UNITS $0.67
FAD/SHARE AND OP UNITS $0.53
DIVIDEND/SHARE AND OP UNITS $0.51
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
Q304
- -----------------------------------------------------------------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO ASSETS HELD
TOTAL EQUITY METHOD SUBTOTAL FOR SALE TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
Investment in Real Estate, at cost $2,549,481,754 $(133,122,396) $2,416,359,358 $ (8,102,171) $2,408,257,187
Accumulated Depreciation (163,944,306) 31,124,661 (132,819,645) - (132,819,645)
Investment in and advances to Partnership
and JVs - 28,700,295 28,700,295 - 28,700,295
Other Assets 307,677,276 (23,333,592) $ 284,343,684 8,102,171 292,445,855
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $2,693,214,724 $ (96,631,032) $2,596,583,692 $ - $2,596,583,692
- -----------------------------------------------------------------------------------------------------------------------------------
Mortgage Notes $1,366,090,242 $(108,055,084) $1,258,035,158 $(17,228,605) $1,240,806,553
Line of Credit 112,000,000 - 112,000,000 - 112,000,000
Acquisition Term Loan &
Unsecured Line of Credit - - - - -
Other Liabilities 81,738,638 11,424,052 93,162,690 17,228,605 110,391,295
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $1,559,828,880 $ (96,631,032) $1,463,197,848 $ - $1,463,197,848
- -----------------------------------------------------------------------------------------------------------------------------------
Minority Interest $ 132,774,526 $ - $ 132,774,526 $ - $ 132,774,526
Total Shareholders Equity 1,000,611,318 - 1,000,611,318 - 1,000,611,318
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDER EQUITY $2,693,214,724 $ (96,631,032) $2,596,583,692 $ - $2,596,583,692
- -----------------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
Q303
- -----------------------------------------------------------------------------------------------------------------------------------
COMBINED ADJUSTMENTS TO SUBTOTAL ASSETS HELD TOTAL
TOTAL EQUITY METHOD FOR SALE
- -----------------------------------------------------------------------------------------------------------------------------------
Investment in Real Estate, at cost $1,310,068,606 $(148,350,893) $1,161,717,713 $ 0 $1,161,717,713
Accumulated Depreciation (97,376,388) 36,454,134 (60,922,254) - (60,922,254)
Investment in and advances to Partnership
and JVs 1,200,000 14,691,677 15,891,677 - 15,891,677
Other Assets 175,110,969 (25,786,601) $149,324,368 - 149,324,368
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $1,389,003,187 $(122,991,683) $1,266,011,504 - $1,266,011,504
- -----------------------------------------------------------------------------------------------------------------------------------
Mortgage Notes $ 739,061,360 $(118,525,862) $ 620,535,498 - $ 620,535,498
Line of Credit - - - - -
Acquisition Term Loan &
Unsecured Line of Credit - - - - -
Other Liabilities 43,344,764 (4,465,821) 38,878,943 - 38,878,943
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 782,406,124 $(122,991,683) $ 659,414,441 - $ 659,414,441
- -----------------------------------------------------------------------------------------------------------------------------------
Minority Interest $ 64,261,590 $ - $ 64,261,590 - $ 64,261,590
Total Shareholders Equity 542,335,473 - 542,335,473 - 542,335,473
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDER EQUITY $1,389,003,187 $(122,991,683) $1,266,011,504 $ - $1,266,011,504
- -----------------------------------------------------------------------------------------------------------------------------------
PAGE 34
PENNSYLVANIA REIT
QUARTERLY SUPPLEMENTAL DISCLOSURE (SEPTEMBER 30, 2004)
DEFINITIONS
FUNDS FROM OPERATIONS (FFO)
The National Association of Real Estate Investment Trusts ("NAREIT") defines
Funds From Operations ("FFO") which is a non-GAAP measure, as income before
gains (losses) on sales of property and extraordinary items (computed in
accordance with GAAP); plus real estate depreciation; plus or minus adjustments
for unconsolidated partnership and joint ventures to reflect funds from
operations on the same basis. FFO is a commonly used measure of operating
performance and profitability in the REIT industry, and we use FFO as a
supplemental non-GAAP measure to compare our company's performance to that of
our industry peers. In addition, we use FFO as a performance measure for
determining bonus amounts earned under certain of our performance-based
executive compensation programs. 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 include gains (losses) on real estate assets, which are included in
the determination of net income in accordance with GAAP. Accordingly, FFO is not
a comprehensive measure of our operating cash flows. In addition, since FFO does
not include depreciation on real estate assets, FFO may not be a useful
performance measure when comparing our operating performance to that of other
non-real estate commercial enterprises. We compensate for these limitations by
using FFO in conjunction with other GAAP financial performance measures, such as
net income and net cash provided by operating activities, and other non-GAAP
financial performance measures such as net operating income. 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 FFO is helpful to management and 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 that are considered extraordinary under
GAAP, gains on sales of real estate and depreciation and amortization of real
estate.
NET OPERATING INCOME (NOI)
Net operating income ("NOI") which is a non-GAAP measure is derived from
revenues (determined in accordance with GAAP) minus property operating expenses
(determined in accordance with GAAP). Net operating income is a non-GAAP
measure. It 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 net operating income.
The Company believes that net operating income is helpful to management and
investors as a measure of operating performance because it is an indicator of
the return on property investment, and provides a method of comparing property
performance over time. Net operating income excludes general and administrative
expenses, management company revenues, interest income, interest expense,
depreciation and amortization, income from discontinued operations and gains on
sales of interests in real estate.
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FAD also referred to as Cash Available for Distributions (CAD) and adjusted FFO
(AFFO). FAD refers to a computation made by analysts and investors to measure a
real estate company's cash flows generated by operations. FAD is calculated by
subtracting from FFO (1) normalized recurring capital expenditures that are
capitalized but necessary to maintain a REIT's properties and (2) straight-line
rents.
The Company believes that net income is the most directly comparable GAAP
measurement to FAD. The Company believes FAD provides a meaningful indicator of
its ability to fund cash needs and to make cash distributions to equity owners.
In addition, the Company feels to further understand its liquidity, FAD should
be compared with its cash flow from operating activities determined in
accordance with GAAP, as presented in its consolidated financial statements. The
computation of FAD may not be comparable to FAD reported by other REITs or real
estate companies and FAD does not represent cash generated from operating
activities determined in accordance with GAAP, and should not be considered as
an alternative to net income (determined in accordance with GAAP) as an
indication of our performance, or as an alternative to net cash flow from
operating activities (determined in accordance with GAAP), as a measure of our
liquidity.
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA)
Earnings before interest, taxes, depreciation and amortization. On a property
level, EBITDA and NOI are equivalent; however, certain corporate revenues and
expenses are added and deducted to/from NOI to derive EBITDA on a company wide
basis. Specifically, management company revenues and interest income are added
to NOI while corporate payroll and other General and Administrative expenses are
deducted from NOI to calculate EBITDA. The Company believes that net income is
the most directly comparable GAAP measurement to EBITDA.
The Company believes that EBITDA helps the Company and its investors evaluate
the ongoing operating performance of its properties and facilitate comparisons
with other REITs and real estate companies. These measures assist management by
providing a baseline to assess property-level results, particularly as the
Company acquires or sells assets. The EBITDA measures presented by the Company
may not be comparable to other similarly titled measures of other companies.
PAGE 35