PENNSYLVANIA REAL ESTATE INVESTMENT TRUST - FORM 8-K - EX-99.1 - EXHIBIT

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8-K - 8-K - PENNSYLVANIA REAL ESTATE INVESTMENT TRUST	q313supplemental8k.htm

Exhibit 99.1

Pennsylvania Real Estate Investment Trust ^®

Supplemental Financial and Operating Information

Quarter Ended September 30, 2013

www.preit.com

NYSE: PEI

NYSE: PEIPRA, PEIPRB

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

September 30, 2013



Table of Contents
Introduction
Company Information	1
Market Capitalization and Capital Resources	2
Operating Results
Statement of Operations - Proportionate Consolidation Method - Quarters Ended September 30, 2013 and September 30, 2012	3
Statement of Operations - Proportionate Consolidation Method - Nine Months Ended September 30, 2013 and September 30, 2012	4
Statement of Net Operating Income - Quarters and Nine Months Ended September 30, 2013 and September 30, 2012	5
Computation of Earnings Per Share	6
Funds From Operations and Funds Available For Distribution - Quarters Ended September 30, 2013 and September 30, 2012	7
Funds From Operations and Funds Available For Distribution - Nine Months Ended September 30, 2013 and September 30, 2012	8
Operating Statistics
Leasing Activity Summary	9
Summarized Sales and Rent Per Square Foot and Occupancy Percentages	10
Mall Occupancy Percentage and Sales Per Square Foot	11
Strip and Power Center Occupancy Percentages	12
Top Twenty Tenants	13
Lease Expirations	14
Property Information	15
Department Store Lease Expirations	17
Balance Sheet
Condensed Balance Sheet - Proportionate Consolidation Method	19
Investment in Real Estate	20
Capital Expenditures	22
Debt Analysis	23
Debt Schedule	24
Selected Debt Ratios	25
Definitions	26

FORWARD-LOOKING STATEMENTS

This Quarterly Supplemental and Operating Information contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREIT’s current views, achievements or results, about future events and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, PREIT’s business might be materially and adversely affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: PREIT’s substantial debt and stated value of preferred shares and our high leverage ratio; constraining leverage, interest and tangible net worth covenants under the 2010 Credit Facility; potential losses on impairment of certain long-lived assets, such as real estate, or intangible assets, such as goodwill; potential losses on impairment of assets that we might be required to record in connection with any dispositions of assets; recent changes to our corporate management team and any resulting modifications to our business strategies; PREIT’s ability to refinance its existing indebtedness when it matures, on favorable terms or at all; PREIT’s ability to raise capital, including through the issuance of equity or equity-related securities if market conditions are favorable, through joint ventures or other partnerships, through sales of properties or interests in properties, or through other actions; PREIT’s short- and long-term liquidity position; current economic conditions and their effect on employment and consumer confidence and spending, and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions and on our cash flows, and the value and potential impairment of our properties; the current economic conditions and their effect on employment, consumer confidence and spending and the corresponding effects on tenant business, performance, prospects, solvency and leasing decisions on our cash flows; general economic, financial and political conditions, including credit and capital market conditions, changes in interest rates or unemployment; changes in the retail industry, including consolidation and store closings, particularly among anchor tenants; the effects of online shopping and other uses of technology on our retail tenants; our ability to maintain and increase property occupancy, sales and rental rates, in light of the relatively high number of leases that have expired or are expiring in the next two years; increases in operating costs that cannot be passed on to tenants; risks relating to development and redevelopment activities; concentration of our properties in the Mid-Atlantic region; changes in local market conditions such as the supply of or demand for retail space, or other competitive factors; potential dilution from any capital raising transactions; possible environmental liabilities; our ability to obtain insurance at a reasonable costs; and existence of complex regulations, including those relating to our status as a REIT, and the adverse consequences if we were to fail as a REIT. Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the estimates set forth in press releases or other disclosures, or that PREIT’s returns on its developments, redevelopments or acquisitions will be consistent with the estimates outlined in press releases or other disclosures. Investors are also directed to consider the risks and uncertainties 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, 2012 and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

Pennsylvania Real Estate Investment Trust

Company Information

Background

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. As of September 30, 2013, the Company owns interests in 44 retail properties, 41 of which are operating retail properties and three are development properties. The 41 operating retail properties have a total of 30.7 million square feet and include 36 enclosed malls and five strip and power centers. The operating properties are located in 11 states in the eastern half of the United States, primarily in the Mid-Atlantic region. PREIT is headquartered in Philadelphia, Pennsylvania.

If you would like to participate in our quarterly conference call or would like additional information about PREIT, please contact:

Heather Crowell, Vice President of Corporate Communications

200 South Broad Street

Philadelphia, PA 19102

Telephone: (215) 875-0735

Fax: (215) 546-2504

Email: crowellh@preit.com



Research Coverage

Company	Analyst	Phone Number

Bank of America/Merrill Lynch	Craig Schmidt	(646) 855-3640

Barclays Capital	Ross Smotrich	(212) 526-2306

Citi Investment Research	Michael Bilerman	(212) 816-1383

Discern	David Wiggington	(646) 863-4177

Evercore Partners	Ben Yang	(415) 229-8070

Green Street Advisors	Cedrik Lachance	(949) 640-8780
	Daniel J. Busch	(949) 640-8780

JP Morgan	Michael W. Mueller	(212) 622-6689
	Yasmine Kamaruddin	(212) 622-1041

Stifel Nicolaus	Nathan Isbee	(443) 224-1346
	Jennifer Hummert	(443) 224-1288

SunTrust Robinson Humphrey	Ki Bin Kim	(212) 303-4124

NOTE: Press release announcements are available on the Company's website at www.preit.com.

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands, except per share amounts)



	Quarter Ended September 30,						Year Ended December 31,
	2013			2012			2012			2011
TRADING INFORMATION
Common Shares
High Price per share	$	22.19		$	17.44		$	17.90		$	17.34
Low Price per share	$	17.71		$	13.86		$	10.49		$	6.50
Closing Share Price (at the end of period)	$	18.70		$	15.86		$	17.64		$	10.44
Series A Preferred Shares
High Price per share	$	26.73		$	27.33		$	27.33		$	—
Low Price per share	$	24.95		$	25.96		$	24.95		$	—
Closing Share Price (at the end of period)	$	25.55		$	26.37		$	26.28		$	—
Series B Preferred Shares
High Price per share	$	26.02		$	—		$	25.54		$	—
Low Price per share	$	23.62		$	—		$	24.51		$	—
Closing Share Price (at the end of period)	$	24.00		$	—		$	25.27		$	—
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding	68,202			55,992			56,331			55,677
OP Units Outstanding	2,129			2,301			2,301			2,329
Total Common Shares and OP Units Outstanding	70,331			58,293			58,632			58,006
Equity Market Capitalization—Common Shares and OP Units	$	1,315,192		$	924,521		$	1,034,273		$	605,581
Series A Preferred Shares, Nominal Value	115,000			115,000			115,000			—
Series B Preferred Shares, Nominal Value	86,250			—			86,250			—
Total Equity Market Capitalization	$	1,516,442		$	1,039,521		$	1,235,523		$	605,581
DEBT CAPITALIZATION ⁽¹⁾
Secured Debt Balance ⁽²⁾⁽³⁾	$	1,737,387		$	2,279,915		$	2,101,769		$	2,230,645
Unsecured Debt Balance ⁽⁴⁾	90,000			—			—			136,900
Debt Capitalization	1,827,387			2,279,915			2,101,769			2,367,545
TOTAL MARKET CAPITALIZATION	$	3,343,829		$	3,319,436		$	3,337,292		$	2,973,126
Equity Capitalization/Total Market Capitalization	45.4		%	31.3		%	37.0		%	20.4		%
Debt Capitalization/Total Market Capitalization	54.6		%	68.7		%	63.0		%	79.6		%
Unsecured Debt Balance/Total Debt	4.9		%	—		%	—		%	5.8		%
DISTRIBUTIONS PER COMMON SHARE
Ordinary Dividends	⁽⁶⁾			$	—		$	—		$	0.37
Capital Gain Distributions ⁽⁵⁾	⁽⁶⁾			—			—			0.01
Non-Dividend Distributions	⁽⁶⁾			0.16			0.63			0.22
Distributions per common share	$	0.18		$	0.16		$	0.63		$	0.60
Annualized Dividend Yield ⁽⁷⁾	3.9		%	4.0		%	3.6		%	5.7		%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	30,585		$	31,795		$	38,873		$	27,481
Revolving Facility	400,000			250,000			250,000			250,000
Amount Outstanding	(90,000		)	(15,000		)	—			(95,000		)
Available Revolving Facility ⁽⁸⁾	310,000			235,000			250,000			155,000
TOTAL	$	340,585		$	266,795		$	288,873		$	182,481
Shelf Registration	$	568,750		$	885,000		$	798,750		$	1,000,000


⁽¹⁾	Amounts exclude debt discount on our Exchangeable Notes and debt premium on mortgage loans.


⁽²⁾	The secured debt balance includes $182,000 in Term Loans outstanding as of December 31, 2012 and $240,000 outstanding as of September 30, 2012 and December 31, 2011.


⁽³⁾	The secured debt balance includes Revolving Facility balances of $15,000 as of September 30, 2012 and $95,000 as of December 31, 2011.


⁽⁴⁾	The unsecured debt balance includes a Revolving Facility balance of $90,000 as of September 30, 2013 and Exchangeable Notes of $136,900 as of December 31, 2011.


⁽⁵⁾	Includes $.004 of unrecaptured Section 1250 gain as of December 31, 2011.


⁽⁶⁾	Tax status of 2013 dividend payments will be available in January 2014.


⁽⁷⁾	Based on closing share price at the end of the period.


⁽⁸⁾	The available Credit Facility borrowings are subject to covenants that may restrict amounts that can be borrowed. On April 17, 2013, the Company entered into the 2013 Revolving Facility.

Pennsylvania Real Estate Investment Trust

Statement of Operations - Quarters Ended September 30, 2013 and September 30, 2012

Proportionate Consolidation Method

(in thousands)



	Quarter Ended September 30, 2013												Quarter Ended September 30, 2012
	Continuing Operations												Continuing Operations
	GAAP			PREIT’s share of unconsolidated partnerships⁽¹⁾			Discontinued operations			Total			GAAP			PREIT’s share of unconsolidated partnerships ⁽¹⁾			Discontinued operations			Total
REVENUE:
Base rent	$	70,646		$	6,813		$	1,184		$	78,643		$	67,951		$	6,592		$	5,473		$	80,016
Expense reimbursements	33,517			2,843			215			36,575			30,959			2,729			1,334			35,022
Percentage rent	593			18			—			611			694			47			4			745
Lease termination revenue	336			10			—			346			279			—			60			339
Other real estate revenue	3,186			296			28			3,510			2,965			300			156			3,421
Total real estate revenue	108,278			9,980			1,427			119,685			102,848			9,668			7,027			119,543
Other income	3,208			—			—			3,208			2,608			—			—			2,608
Total revenue	111,486			9,980			1,427			122,893			105,456			9,668			7,027			122,151
EXPENSES:
Operating expenses:
CAM and real estate taxes	(36,938		)	(2,169		)	(198		)	(39,305		)	(33,755		)	(2,083		)	(2,679		)	(38,517		)
Utilities	(6,954		)	(207		)	(5		)	(7,166		)	(6,637		)	(201		)	(53		)	(6,891		)
Other operating expenses	(4,806		)	(595		)	(240		)	(5,641		)	(5,228		)	(561		)	(251		)	(6,040		)
Total operating expenses	(48,698		)	(2,971		)	(443		)	(52,112		)	(45,620		)	(2,845		)	(2,983		)	(51,448		)
Depreciation and amortization	(36,053		)	(1,891		)	(62		)	(38,006		)	(31,918		)	(1,845		)	(1,858		)	(35,621		)
Other expenses:
General and administrative expenses	(8,116		)	—			—			(8,116		)	(8,694		)	—			—			(8,694		)
Impairment of assets	(29,966		)	—			—			(29,966		)				—			—			—
Provision for employee separation expense	—			—			—			—			(4,958		)	—			—			(4,958		)
Project costs and other expenses	(462		)	—			—			(462		)	(380		)	(1		)	—			(381		)
Total other expenses	(38,544		)	—			—			(38,544		)	(14,032		)	(1		)	—			(14,033		)
Interest expense, net⁽²⁾	(23,477		)	(2,773		)	(494		)	(26,744		)	(29,996		)	(2,813		)	(1,101		)	(33,910		)
Total expenses	(146,772		)	(7,635		)	(999		)	(155,406		)	(121,566		)	(7,504		)	(5,942		)	(135,012		)
Loss before equity in income of partnerships, discontinued operations and gains on sales discontinued operations	(35,286		)	2,345			428			(32,513		)	(16,110		)	2,164			1,085			(12,861		)
Equity in income of partnerships	2,345			(2,345		)	—			—			2,164			(2,164		)	—			—
Loss from continuing operations	(32,941		)	—			428			(32,513		)	(13,946		)	—			1,085			(12,861		)
Discontinued operations:
Operating results from discontinued operations	428			—			(428		)	—			1,085			—			(1,085		)	—
Gains on sales of discontinued operations	45,097			—			—			45,097			—			—			—			—
Income from discontinued operations	45,525			—			(428		)	45,097			1,085			—			(1,085		)	—
Net income (loss)	12,584			—			—			12,584			(12,861		)	—			—			(12,861		)
Less: net (income) loss attributed to noncontrolling interest	(382		)	—			—			(382		)	508			—			—			508
Net income (loss) attributable to PREIT	$	12,202		$	—		$	—		$	12,202		$	(12,353	)	$	—		$	—		$	(12,353	)
Less: preferred share dividends	(3,962		)	—			—			(3,962		)	(2,372		)	—			—			(2,372		)
Net income (loss) attributable to PREIT common shareholders	$	8,240		$	—		$	—		$	8,240		$	(14,725	)	$	—		$	—		$	(14,725	)


⁽¹⁾	PREIT’s proportionate share of partnership operations is “grossed up” to reflect the Company’s share of the total revenue and expenses of the underlying properties.


⁽²⁾	Net of capitalized interest expense of $331 and $315 for the quarters ended September 30, 2013 and 2012, respectively.

Pennsylvania Real Estate Investment Trust

Statement of Operations - Nine Months Ended September 30, 2013 and September 30, 2012

Proportionate Consolidation Method

(in thousands)



	Nine Months Ended September 30, 2013												Nine Months Ended September 30, 2012
	Continuing Operations												Continuing Operations
	GAAP			PREIT’s share of unconsolidated partnerships⁽¹⁾			Discontinued operations			Total			GAAP			PREIT’s share of unconsolidated partnerships ⁽¹⁾			Discontinued operations			Total
REVENUE:
Base rent	$	209,990		$	20,336		$	5,026		$	235,352		$	201,340		$	19,482		$	16,527		$	237,349
Expense reimbursements	95,704			8,361			973			105,038			91,280			7,955			3,951			103,186
Percentage rent	2,169			89			16			2,274			2,099			87			25			2,211
Lease termination revenue	579			27			35			641			1,691			58			75			1,824
Other real estate revenue	8,953			870			171			9,994			8,723			924			470			10,117
Total real estate revenue	317,395			29,683			6,221			353,299			305,133			28,506			21,048			354,687
Other income	5,491			—			—			5,491			4,254			—			—			4,254
Total revenue	322,886			29,683			6,221			358,790			309,387			28,506			21,048			358,941
EXPENSES:
Operating expenses:
CAM and real estate taxes	(107,426		)	(6,518		)	(1,547		)	(115,491		)	(100,557		)	(6,094		)	(8,026		)	(114,677		)
Utilities	(17,213		)	(545		)	(32		)	(17,790		)	(17,525		)	(533		)	(168		)	(18,226		)
Other operating expenses	(12,824		)	(1,705		)	(591		)	(15,120		)	(13,815		)	(1,782		)	(1,327		)	(16,924		)
Total operating expenses	(137,463		)	(8,768		)	(2,170		)	(148,401		)	(131,897		)	(8,409		)	(9,521		)	(149,827		)
Depreciation and amortization	(105,332		)	(5,529		)	(216		)	(111,077		)	(95,232		)	(5,537		)	(5,662		)	(106,431		)
Other expenses:
General and administrative expenses	(26,578		)	—			—			(26,578		)	(28,818		)	—			—			(28,818		)
Impairment of assets	(29,966		)	—			—			(29,966		)				—			—			—
Provision for employee separation expense	(2,314		)	—			—			(2,314		)	(5,754		)	—			—			(5,754		)
Project costs and other expenses	(862		)	—			—			(862		)	(777		)	(1		)	—			(778		)
Total other expenses	(59,720		)	—			—			(59,720		)	(35,349		)	(1		)	—			(35,350		)
Interest expense, net⁽²⁾	(78,503		)	(8,305		)	(1,753		)	(88,561		)	(91,531		)	(8,449		)	(3,031		)	(103,011		)
Total expenses	(381,018		)	(22,602		)	(4,139		)	(407,759		)	(354,009		)	(22,396		)	(18,214		)	(394,619		)
Loss before equity in income of partnerships, discontinued operations and gains on sales discontinued operations	(58,132		)	7,081			2,082			(48,969		)	(44,622		)	6,110			2,834			(35,678		)
Equity in income of partnerships	7,081			(7,081		)	—			—			6,110			(6,110		)	—			—
Loss from continuing operations	(51,051		)	—			2,082			(48,969		)	(38,512		)	—			2,834			(35,678		)
Discontinued operations:
Operating results from discontinued operations	2,082			—			(2,082		)	—			2,834			—			(2,834		)	—
Gains on sales of discontinued operations	78,351			—			—			78,351			—			—			—			—
Income from discontinued operations	80,433			—			(2,082		)	78,351			2,834			—			(2,834		)	—
Net income (loss)	29,382			—			—			29,382			(35,678		)	—			—			(35,678		)
Less: net (income) loss attributed to noncontrolling interest	(1,073		)	—			—			(1,073		)	1,440			—			—			1,440
Net income (loss) attributable to PREIT	$	28,309		$	—		$	—		$	28,309		$	(34,238	)	$	—		$	—		$	(34,238	)
Less: preferred share dividends	(11,886		)	—			—			(11,886		)	(4,217		)	—			—			(4,217		)
Net income (loss) attributable to PREIT common shareholders	$	16,423		$	—		$	—		$	16,423		$	(38,455	)	$	—		$	—		$	(38,455	)


⁽¹⁾	PREIT’s proportionate share of partnership operations is “grossed up” to reflect the Company’s share of the total revenue and expenses of the underlying properties.


⁽²⁾	Net of capitalized interest expense of $609 and $1,398 for the nine months ended September 30, 2013 and 2012, respectively.

Pennsylvania Real Estate Investment Trust

Statement of Net Operating Income ⁽¹⁾

(in thousands)



	Quarter Ended September 30, 2013												Quarter Ended September 30, 2012
SAME STORE RETAIL/OTHER	Same			New			Other			Total			Same			New		Other			Total
Real estate revenue:
Base rent	$	75,770		$	1,391		$	1,482		$	78,643		$	74,190		$	—	$	5,826		$	80,016
Expense reimbursements	36,047			304			224			36,575			33,678			—		1,344			35,022
Percentage rent	611			—			—			611			741			—		4			745
Lease termination revenue	346			—			—			346			279			—		60			339
Other real estate revenue	3,361			1			148			3,510			3,144			—		277			3,421
TOTAL REAL ESTATE REVENUE	116,135			1,696			1,854			119,685			112,032			—		7,511			119,543
Operating expenses:
CAM and real estate taxes	(38,529		)	(300		)	(476		)	(39,305		)	(35,445		)	—		(3,072		)	(38,517		)
Utilities	(6,920		)	(242		)	(4		)	(7,166		)	(6,838		)	—		(53		)	(6,891		)
Other operating expenses	(5,370		)	—			(271		)	(5,641		)	(5,775		)	—		(265		)	(6,040		)
TOTAL OPERATING EXPENSES	(50,819		)	(542		)	(751		)	(52,112		)	(48,058		)	—		(3,390		)	(51,448		)
NET OPERATING INCOME	$	65,316		$	1,154		$	1,103		$	67,573		$	63,974		$	—	$	4,121		$	68,095

	2013			% change 2012 to 2013			2012
Same store NOI variance
Same store NOI ⁽²⁾	$	65,316		2.1%			$	63,974
Same store NOI excluding lease terminations	$	64,970		2.0%			$	63,695



	Nine Months Ended September 30, 2013												Nine Months Ended September 30, 2012
SAME STORE RETAIL/OTHER	Same			New			Other			Total			Same			New		Other			Total
Real estate revenue:
Base rent	$	226,857		$	2,551		$	5,944		$	235,352		$	219,775		$	—	$	17,574		$	237,349
Expense reimbursements	103,544			492			1,002			105,038			99,199			—		3,987			103,186
Percentage rent	2,258			—			16			2,274			2,186			—		25			2,211
Lease termination revenue	606			—			35			641			1,749			—		75			1,824
Other real estate revenue	9,461			1			532			9,994			9,279			—		838			10,117
TOTAL REAL ESTATE REVENUE	342,726			3,044			7,529			353,299			332,188			—		22,499			354,687
Operating expenses:
CAM and real estate taxes	(112,218		)	(542		)	(2,731		)	(115,491		)	(105,395		)	—		(9,282		)	(114,677		)
Utilities	(17,404		)	(355		)	(31		)	(17,790		)	(18,058		)	—		(168		)	(18,226		)
Other operating expenses	(14,443		)	(36		)	(641		)	(15,120		)	(15,519		)	—		(1,405		)	(16,924		)
TOTAL OPERATING EXPENSES	(144,065		)	(933		)	(3,403		)	(148,401		)	(138,972		)	—		(10,855		)	(149,827		)
NET OPERATING INCOME	$	198,661		$	2,111		$	4,126		$	204,898		$	193,216		$	—	$	11,644		$	204,860

	2013			% change 2012 to 2013			2012
Same store NOI variance
Same store NOI ⁽²⁾	$	198,661		2.8%			$	193,216
Same store NOI excluding lease terminations	$	198,055		3.4%			$	191,467


⁽¹⁾	PREIT's proportionate share of partnership operations is "grossed up" to reflect the Company's share of the total revenue and expenses of the underlying properties.


⁽²⁾	Same store NOI definition can be found on page 26.

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share

(in thousands, except per share amounts)



	Quarter Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Loss from continuing operations	$	(32,941	)	$	(13,946	)	$	(51,051	)	$	(38,512	)
Noncontrolling interest	992			551			1,656			1,552
Dividends on preferred shares	(3,962		)	(2,372		)	(11,886		)	(4,217		)
Dividends on unvested restricted shares	(108		)	(132		)	(319		)	(321		)
Loss from continuing operations used to calculate loss per share - basic and diluted	$	(36,019	)	$	(15,899	)	$	(61,600	)	$	(41,498	)

Income from discontinued operations	$	45,525		$	1,085		$	80,433		$	2,834
Noncontrolling interest	(1,374		)	(43		)	(2,729		)	(112		)
Income from discontinued operations used to calculate earnings per share - basic and diluted	$	44,151		$	1,042		$	77,704		$	2,722
Basic and diluted earnings (loss) per share
Loss from continuing operations	$	(0.53	)	$	(0.29	)	$	(0.99	)	$	(0.75	)
Income from discontinued operations	0.65			0.02			1.25			0.05
	$	0.12		$	(0.27	)	$	0.26		$	(0.70	)

Weighted average common shares outstanding	68,174			55,995			62,933			55,827
Weighted average unvested restricted shares	(595		)	(805		)	(603		)	(746		)
Weighted average shares outstanding - basic	67,579			55,190			62,330			55,081
Weighted average effect of common share equivalents ⁽¹⁾	—			—			—			—
Total weighted average shares outstanding - diluted	67,579			55,190			62,330			55,081


⁽¹⁾	The Company had net losses from continuing operations for all periods presented. Therefore, the effect of common share equivalents of 825 and 982 for the quarters ended September 30, 2013 and 2012, respectively, and 851 and 1,017 for the nine months ended September 30, 2013 and 2012, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive.

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)



	Quarter Ended September 30, 2013													Quarter Ended September 30, 2012
	Continuing Operations													Continuing Operations
	Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total				Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue	$	108,278		$	9,980		$	1,427		$	119,685			$	102,848		$	9,668		$	7,027		$	119,543
Operating expenses	(48,698		)	(2,971		)	(443		)	(52,112		)		(45,620		)	(2,845		)	(2,983		)	(51,448		)
NET OPERATING INCOME	59,580			7,009			984			67,573				57,228			6,823			4,044			68,095
General and administrative expenses	(8,116		)	—			—			(8,116		)		(8,694		)	—			—			(8,694		)
Provision for employee separation expense	—			—			—			—				(4,958		)	—			—			(4,958		)
Other income	3,208			—			—			3,208				2,608			—			—			2,608
Project costs and other expenses	(462		)	—			—			(462		)		(380		)	(1		)	—			(381		)
Interest expense, net	(23,477		)	(2,773		)	(494		)	(26,744		)		(29,996		)	(2,813		)	(1,101		)	(33,910		)
Depreciation on non real estate assets	(253		)	—			—			(253		)		(256		)	—			—			(256		)
Dividends on preferred shares	(3,962		)	—			—			(3,962		)		(2,372		)	—			—			(2,372		)
FFO	26,518			4,236			490			31,244				13,180			4,009			2,943			20,132
Depreciation on real estate assets	(35,800		)	(1,891		)	(62		)	(37,753		)		(31,662		)	(1,845		)	(1,858		)	(35,365		)
Equity in income of partnerships	2,345			(2,345		)	—			—				2,164			(2,164		)	—			—
Impairment of assets	(29,966		)	—			—			(29,966		)					—			—			—
Operating results from discontinued operations	428			—			(428		)	—				1,085			—			(1,085		)	—
Gains on sales of discontinued operations	45,097			—			—			45,097				—			—			—			—
Preferred share dividends	3,962			—			—			3,962				2,372			—			—			2,372
Net income (loss)	$	12,584		$	—		$	—		$	12,584			$	(12,861	)	$	—		$	—		$	(12,861	)
FFO	$	26,518		$	4,236		$	490		$	31,244			$	13,180		$	4,009		$	2,943		$	20,132
Provision for employee separation expenses	—			—			—			—				4,958			—			—			4,958
Accelerated amortization of deferred financing costs	50			—			—			50				—			—			—			—
Loss on hedge ineffectiveness	727			—			—			727				—			—			—			—
FFO AS ADJUSTED	$	27,295		$	4,236		$	490		$	32,021			$	18,138		$	4,009		$	2,943		$	25,090
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	27,295		$	4,236		$	490		$	32,021			$	18,138		$	4,009		$	2,943		$	25,090
Adjustments:
Straight line rent	(287		)	(41		)	13			(315		)		(994		)	(14		)	28			(980		)
Recurring capital expenditures	(5,537		)	(278		)	—			(5,815		)		(5,768		)	(89		)	(123		)	(5,980		)
Tenant allowances	(5,068		)	(20		)	—			(5,088		)		(8,513		)	(201		)	(32		)	(8,746		)
Capitalized leasing costs	(1,180		)	—			—			(1,180		)		(1,636		)	—			—			(1,636		)
Amortization of mortgage loan premium	—			—			—			—				(112		)	—			—			(112		)
Amortization of above- and below-market lease intangibles	(296		)	(21		)	—			(317		)		(51		)	(30		)	2			(79		)
FAD	$	14,927		$	3,876		$	503		$	19,306			$	1,064		$	3,675		$	2,818		$	7,557
Weighted average number of shares outstanding										67,579													55,190
Weighted average effect of full conversion of OP Units										2,136													2,302
Effect of common share equivalents										825													982
Total weighted average shares outstanding, including OP Units										70,540													58,474
FFO PER DILUTED SHARE AND OP UNIT										$	0.44												$	0.34
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED										$	0.45												$	0.43
FAD PER DILUTED SHARE AND OP UNIT										$	0.27												$	0.13
DIVIDEND PER COMMON SHARE										$	0.18												$	0.16
PAYOUT RATIOS
Payout ratio of FFO										37.6		%	⁽¹⁾										38.6		%	⁽²⁾
Payout ratio of FFO as adjusted										35.1		%	⁽¹⁾										34.5		%	⁽²⁾
Payout ratio of FAD										59.6		%	⁽¹⁾										69.3		%	⁽²⁾


⁽¹⁾	Twelve months ended September 30, 2013.


⁽²⁾	Twelve months ended September 30, 2012.

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)



	Nine Months Ended September 30, 2013													Nine Months Ended September 30, 2012
	Continuing Operations													Continuing Operations
	Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total				Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue	$	317,395		$	29,683		$	6,221		$	353,299			$	305,133		$	28,506		$	21,048		$	354,687
Operating expenses	(137,463		)	(8,768		)	(2,170		)	(148,401		)		(131,897		)	(8,409		)	(9,521		)	(149,827		)
NET OPERATING INCOME	179,932			20,915			4,051			204,898				173,236			20,097			11,527			204,860
General and administrative expenses	(26,578		)	—			—			(26,578		)		(28,818		)	—			—			(28,818		)
Provision for employee separation expense	(2,314		)	—			—			(2,314		)		(5,754		)	—			—			(5,754		)
Other income	5,491			—			—			5,491				4,254			—			—			4,254
Project costs and other expenses	(862		)	—			—			(862		)		(777		)	(1		)	—			(778		)
Interest expense, net	(78,503		)	(8,305		)	(1,753		)	(88,561		)		(91,531		)	(8,449		)	(3,031		)	(103,011		)
Depreciation on non real estate assets	(801		)	—			—			(801		)		(604		)	—			—			(604		)
Dividends on preferred shares	(11,886		)	—			—			(11,886		)		(4,217		)	—			—			(4,217		)
FFO	64,479			12,610			2,298			79,387				45,789			11,647			8,496			65,932
Depreciation on real estate assets	(104,531		)	(5,529		)	(216		)	(110,276		)		(94,628		)	(5,537		)	(5,662		)	(105,827		)
Equity in income of partnerships	7,081			(7,081		)	—			—				6,110			(6,110		)	—			—
Impairment of assets	(29,966		)	—			—			(29,966		)					—			—			—
Operating results from discontinued operations	2,082			—			(2,082		)	—				2,834			—			(2,834		)	—
Gains on sales of discontinued operations	78,351			—			—			78,351				—			—			—			—
Dividends on preferred shares	11,886			—			—			11,886				4,217			—			—			4,217
Net income (loss)	$	29,382		$	—		$	—		$	29,382			$	(35,678	)	$	—		$	—		$	(35,678	)
FFO	$	64,479		$	12,610		$	2,298		$	79,387			$	45,789		$	11,647		$	8,496		$	65,932
Provision for employee separation expenses	2,314			—			—			2,314				5,754			—			—			5,754
Loss on hedge ineffectiveness	3,409			—			—			3,409				—			—			—			—
Accelerated amortization of deferred financing costs	1,076			—			—			1,076				—			—			—			—
FFO AS ADJUSTED	$	71,278		$	12,610		$	2,298		$	86,186			$	51,543		$	11,647		$	8,496		$	71,686
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	71,278		$	12,610		$	2,298		$	86,186			$	51,543		$	11,647		$	8,496		$	71,686
Adjustments:
Straight line rent	(1,081		)	(113		)	49			(1,145		)		(1,387		)	59			95			(1,233		)
Recurring capital expenditures	(8,048		)	(481		)	—			(8,529		)		(7,560		)	(294		)	(123		)	(7,977		)
Tenant allowances	(13,816		)	(201		)	—			(14,017		)		(16,039		)	(398		)	(554		)	(16,991		)
Capitalized leasing costs	(3,902		)	—			—			(3,902		)		(4,137		)	—			—			(4,137		)
Amortization of mortgage loan premium	—			—			—			—				(282		)	—			—			(282		)
Amortization of above- and below-market lease intangibles	(676		)	(72		)	—			(748		)		(197		)	(94		)	6			(285		)
Amortization of exchangeable notes debt discount	—			—			—			—				849			—			—			849
FAD	$	43,755		$	11,743		$	2,347		$	57,845			$	22,790		$	10,920		$	7,920		$	41,630
Weighted average number of shares outstanding										62,330													55,081
Weighted average effect of full conversion of OP Units										2,215													2,313
Effect of common share equivalents										851													1,017
Total weighted average shares outstanding, including OP Units										65,396													58,411
FFO PER DILUTED SHARE AND OP UNIT										$	1.21												$	1.13
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED										$	1.32												$	1.23
FAD PER DILUTED SHARE AND OP UNIT										$	0.88												$	0.71
DIVIDEND PER COMMON SHARE										$	0.54												$	0.47
PAYOUT RATIOS
Payout ratio of FFO										40.7		%	⁽¹⁾										37.3		%	⁽²⁾
Payout ratio of FFO as adjusted										36.5		%	⁽¹⁾										33.3		%	⁽²⁾
Payout ratio of FAD										62.5		%	⁽¹⁾										63.3		%	⁽²⁾


⁽¹⁾	Twelve months ended September 30, 2013.


⁽²⁾	Twelve months ended September 30, 2012.

Pennsylvania Real Estate Investment Trust

2013 Leasing Activity Summary



			Avg Gross Rent psf				Change in Gross Rent psf					Annualized Tenant Improvements psf⁽²⁾
	Number	GLA	Previous		New⁽¹⁾		Dollar			%		Annualized Tenant Improvements psf⁽²⁾
New Leases: ⁽³⁾
1st Quarter	33	95,895	N/A		$	39.60	$	39.60		N/A		$	7.82
2nd Quarter ⁽⁴⁾	53	144,481	N/A		39.73		39.73			N/A		7.36
3rd Quarter ⁽⁵⁾	60	234,946	N/A		26.74		26.74			N/A		6.31
Total/Average	146	475,322	N/A		$	33.28	$	33.28		N/A		$	6.93

Renewal - non-anchor tenants 10k sf and under: ⁽⁶⁾
1st Quarter	73	216,780	$	35.21	$	36.93	$	1.72		4.9	%	$	0.04
2nd Quarter	107	249,256	34.98		36.81		1.83			5.2	%	—
3rd Quarter	63	184,923	34.06		36.28		2.22			6.5	%	—
Total/Average	243	650,959	$	34.80	$	36.70	$	1.90		5.5	%	$	0.01

Renewal - non-anchor tenants greater than 10k sf: ⁽⁶⁾
1st Quarter	1	11,521	$	7.49	$	7.23	$	(0.26	)	(3.5	)%	$	—
2nd Quarter	1	20,308	7.60		15.43		7.83			103.0	%	—
3rd Quarter	3	47,600	16.32		13.25		(3.07		)	(18.8	)%	—
Total/Average	5	79,429	$	12.81	$	12.93	$	0.12		1.0	%	$	—

Anchor Renewal:
1st Quarter	1	83,835	$	8.58	$	9.10	$	0.52		6.1	%	$	—
2nd Quarter	4	374,700	3.59		3.24		(0.35		)	(9.7	)%	—
3rd Quarter	8	666,739	4.64		4.84		0.20			4.3	%	0.10
Total/Average	13	1,125,274	$	4.58	$	4.62	$	0.04		0.9	%	$	0.06


⁽¹⁾	New rent is the initial amount payable upon rent commencement.


⁽²⁾	These leasing costs are presented as annualized costs per square foot and are spread uniformly over the initial lease term.


⁽³⁾	This category includes newly constructed and recommissioned space.


⁽⁴⁾	Excluding tenants greater than 10k square feet, average gross rent per square foot for new leases was $51.11.


⁽⁵⁾	Excluding tenants greater than 10k square feet, average gross rent per square foot for new leases was $30.91.


⁽⁶⁾	This category includes expansions and lease extensions.

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages



	September 30, 2013										September 30, 2012											Change
	% Rolling 12 Mo. NOI		Avg. Comp Sales	Avg. Gross Rent⁽¹⁾⁽²⁾	Occ. Cost		Occupancy				% Rolling 12 Mo. NOI		Avg. Comp Sales	Avg. Gross Rent⁽¹⁾⁽²⁾		Occ. Cost		Occupancy				Avg. Comp Sales		Avg. Gross Rent⁽¹⁾⁽²⁾		Occ. Cost		Occupancy
							Total		Non-Anchor									Total		Non-Anchor								Total		Non-Anchor
							Total		Non-Anchor									Total		Non-Anchor								Total		Non-Anchor
Premier Malls	32.3	%	$532	$66.09	12.9	%	97.5	%	96.2	%	30.8	%	$538	$	63.34	12.2	%	96.0	%	94.1	%	(1.1	)%	4.4	%	0.7	%	1.5	%	2.1	%
Core Growth Malls	46.6	%	$358	$42.04	12.7	%	93.3	%	90.4	%	44.5	%	$362	$	41.60	12.7	%	92.9	%	89.5	%	(1.1	)%	1.1	%	—	%	0.4	%	0.9	%
Opportunistic Malls	10.8	%	$265	$26.71	11.1	%	90.8	%	85.2	%	10.4	%	$273	$	25.85	10.5	%	92.1	%	86.6	%	(2.9	)%	3.3	%	0.6	%	(1.3	)%	(1.4	)%
Non Core Malls	4.3	%	$254	$26.37	11.5	%	91.0	%	85.7	%	4.3	%	$246	$	29.37	11.5	%	88.9	%	81.4	%	3.3	%	(10.2	)%	—	%	2.1	%	4.3	%
Total Malls	93.9	%	$381	$44.12	12.5	%	93.4	%	90.3	%	90.0	%	$384	$	43.03	12.2	%	92.9	%	89.3	%	(0.8	)%	2.5	%	0.3	%	0.5	%	1.0	%
Strip and Power Centers	4.0	%	N/A	$18.29	N/A		94.5	%	92.5	%	4.0	%	N/A	$	18.23	N/A		94.5	%	92.5	%	N/A		0.3	%	N/A		—	%	—	%
Total Retail Properties	97.9	%	N/A	$39.88	N/A		93.5	%	90.6	%	94.0	%	N/A	$	39.01	N/A		93.0	%	89.6	%	N/A		2.2	%	N/A		0.5	%	1.0	%
Sold Properties⁽³⁾	2.0	%	N/A	N/A	N/A		N/A		N/A		5.8	%	N/A	$	22.80	N/A		91.9	%	83.8	%	N/A		N/A		N/A		N/A		N/A
Other Properties	0.1	%	N/A	N/A	N/A		N/A		N/A		0.2	%	N/A	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Total Portfolio	100.0	%		$39.88			93.5	%	90.6	%	100.0	%		$	37.59			92.9	%	89.1	%			6.1	%			0.6	%	1.5	%


⁽¹⁾	Average gross rent for malls includes all non-anchor space owned by the Company and leased to tenants that lease individual spaces of 10,000 square feet or less. Average gross rent for strip and power centers includes all non-anchor space owned by the Company regardless of size.


⁽²⁾	Average gross rent for mall tenants greater than 10,000 sf was $17.47 per square foot as of September 30, 2013 and $16.94 per square foot as of September 30, 2012.


⁽³⁾	Includes Christiana Center, Commons at Magnolia, Orlando Fashion Square, Paxton Towne Centre, and Phillipsburg Mall.

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot



	September 30, 2013								September 30, 2012								Change
	Avg Comp Sales⁽¹⁾		Total Occ %		Non Anchor Occup. %		Occup. Cost Ratio⁽¹⁾		Avg Comp Sales⁽¹⁾		Total Occ %		Non Anchor Occup. %		Occup. Cost Ratio⁽¹⁾		Avg Comp Sales⁽¹⁾		Total Occ %		Non Anchor Occup. %		Occup. Cost Ratio⁽¹⁾
Premier Malls
Cherry Hill Mall	$	629	94.4	%	93.3	%	14.4	%	$	639	92.6	%	91.1	%	12.8	%	(1.6	)%	1.8	%	2.2	%	1.6	%
Lehigh Valley Mall	567		98.3	%	97.2	%	12.0	%	585		97.4	%	95.7	%	11.2	%	(3.1	)%	0.9	%	1.5	%	0.8	%
Woodland Mall	519		99.0	%	99.0	%	11.8	%	529		98.2	%	98.2	%	11.9	%	(1.9	)%	0.8	%	0.8	%	(0.1	)%
Jacksonville Mall	465		99.7	%	99.3	%	12.1	%	504		99.6	%	99.1	%	10.8	%	(7.7	)%	0.1	%	0.2	%	1.3	%
Willow Grove Park	440		98.1	%	96.1	%	14.0	%	415		93.0	%	87.8	%	15.1	%	6.0	%	5.1	%	8.3	%	(1.1	)%
Dartmouth Mall	439		96.7	%	94.6	%	11.1	%	438		96.9	%	95.0	%	11.2	%	0.2	%	(0.2	)%	(0.4	)%	(0.1	)%
Premier Malls Subtotal	$	532	97.5	%	96.2	%	12.9	%	$	538	96.0	%	94.1	%	12.2	%	(1.1	)%	1.5	%	2.1	%	0.7	%
Core Growth Malls
Springfield Mall	$	403	92.9	%	92.9	%	14.1	%	$	383	89.0	%	89.0	%	14.4	%	5.2	%	3.9	%	3.9	%	(0.3	)%
Wyoming Valley Mall	396		96.8	%	90.8	%	12.4	%	382		97.3	%	92.3	%	11.9	%	3.7	%	(0.5	)%	(1.5	)%	0.5	%
Patrick Henry Mall	391		95.7	%	93.7	%	14.3	%	390		93.9	%	88.1	%	14.3	%	0.3	%	1.8	%	5.6	%	—	%
The Mall at Prince Georges	390		95.9	%	91.4	%	14.5	%	384		97.2	%	94.2	%	14.3	%	1.6	%	(1.3	)%	(2.8	)%	0.2	%
Valley View Mall	382		97.1	%	96.0	%	12.0	%	384		96.6	%	95.3	%	11.4	%	(0.5	)%	0.5	%	0.7	%	0.6	%
Capital City Mall	381		97.0	%	94.9	%	12.1	%	372		96.2	%	93.5	%	11.6	%	2.4	%	0.8	%	1.4	%	0.5	%
Viewmont Mall	365		99.3	%	98.1	%	13.4	%	377		98.7	%	96.6	%	12.6	%	(3.2	)%	0.6	%	1.5	%	0.8	%
Francis Scott Key Mall	360		98.7	%	97.8	%	11.2	%	347		97.1	%	95.3	%	11.5	%	3.7	%	1.6	%	2.5	%	(0.3	)%
The Gallery at Market East	354		77.1	%	78.7	%	15.3	%	381		71.9	%	80.6	%	14.4	%	(7.1	)%	5.2	%	(1.9	)%	0.9	%
Valley Mall	350		95.4	%	92.0	%	11.4	%	368		94.9	%	91.3	%	11.0	%	(4.9	)%	0.5	%	0.7	%	0.4	%
Crossroads Mall	350		95.9	%	91.1	%	9.8	%	366		96.1	%	91.7	%	9.4	%	(4.4	)%	(0.2	)%	(0.6	)%	0.4	%
Moorestown Mall	348		87.3	%	68.3	%	14.3	%	362		89.1	%	72.8	%	14.2	%	(3.9	)%	(1.8	)%	(4.5	)%	0.1	%
Magnolia Mall	343		99.0	%	97.7	%	11.5	%	340		98.8	%	97.2	%	12.3	%	0.9	%	0.2	%	0.5	%	(0.8	)%
Plymouth Meeting Mall	332		90.1	%	84.8	%	10.0	%	333		90.1	%	84.9	%	10.2	%	(0.3	)%	—	%	(0.1	)%	(0.2	)%
Exton Square Mall	322		94.8	%	88.0	%	14.0	%	339		92.9	%	84.5	%	13.7	%	(5.0	)%	1.9	%	3.5	%	0.3	%
Logan Valley Mall	320		97.4	%	93.9	%	11.7	%	323		96.3	%	91.1	%	13.9	%	(0.9	)%	1.1	%	2.8	%	(2.2	)%
Cumberland Mall	320		94.9	%	91.6	%	13.2	%	325		94.2	%	90.5	%	12.7	%	(1.5	)%	0.7	%	1.1	%	0.5	%
Gadsden Mall	294		97.4	%	93.5	%	10.9	%	330		94.0	%	85.1	%	9.7	%	(10.9	)%	3.4	%	8.4	%	1.2	%
Core Growth Malls Subtotal	$	358	93.3	%	90.4	%	12.7	%	$	362	92.9	%	89.5	%	12.7	%	(1.1	)%	0.4	%	0.9	%	—	%
Opportunistic Malls
Palmer Park Mall	$	299	92.3	%	75.3	%	11.0	%	$	299	94.9	%	83.9	%	11.8	%	—	%	(2.6	)%	(8.6	)%	(0.8	)%
New River Valley Mall	278		88.0	%	96.8	%	10.9	%	281		97.9	%	96.5	%	10.6	%	(1.1	)%	(9.9	)%	0.3	%	0.3	%
Wiregrass Commons Mall	273		94.2	%	91.6	%	11.5	%	286		93.4	%	90.4	%	10.2	%	(4.5	)%	0.8	%	1.2	%	1.3	%
Washington Crown Center	273		85.8	%	73.7	%	10.6	%	255		92.9	%	86.8	%	10.8	%	7.1	%	(7.1	)%	(13.1	)%	(0.2	)%
Lycoming Mall	269		94.5	%	89.5	%	10.8	%	273		96.9	%	94.2	%	10.1	%	(1.5	)%	(2.4	)%	(4.7	)%	0.7	%
Uniontown Mall	267		96.4	%	91.7	%	11.1	%	282		89.6	%	84.7	%	10.3	%	(5.3	)%	6.8	%	7.0	%	0.8	%
Nittany Mall	240		94.6	%	89.1	%	11.4	%	267		95.9	%	91.6	%	10.4	%	(10.1	)%	(1.3	)%	(2.5	)%	1.0	%
Voorhees Town Center	216		71.9	%	71.5	%	11.0	%	223		65.8	%	65.4	%	10.7	%	(3.1	)%	6.1	%	6.1	%	0.3	%
Opportunistic Malls Subtotal	$	265	90.8	%	85.2	%	11.1	%	$	273	92.1	%	86.6	%	10.5	%	(2.9	)%	(1.3	)%	(1.4	)%	0.6	%
Non Core Malls
Beaver Valley Mall	$	272	93.8	%	86.5	%	12.1	%	$	248	92.0	%	83.0	%	12.5	%	9.7	%	1.8	%	3.5	%	(0.4	)%
North Hanover Mall	267		84.2	%	86.8	%	13.1	%	263		84.6	%	88.1	%	11.9	%	1.5	%	(0.4	)%	(1.3	)%	1.2	%
Chambersburg Mall	235		88.9	%	76.2	%	9.0	%	228		88.5	%	75.4	%	9.3	%	3.1	%	0.4	%	0.8	%	(0.3	)%
South Mall	231		94.3	%	91.3	%	11.8	%	251		86.9	%	80.0	%	12.1	%	(8.0	)%	7.4	%	11.3	%	(0.3	)%
Non Core Malls Subtotal	$	254	91.0	%	85.7	%	11.5	%	$	246	88.9	%	81.4	%	11.5	%	3.3	%	2.1	%	4.3	%	—	%
Same Store Malls weighted average	$	381	93.4	%	90.3	%	12.5	%	$	384	92.9	%	89.3	%	12.2	%	(0.8	)%	0.5	%	1.0	%	0.3	%
Sold Properties	N/A		N/A		N/A		N/A		$	244	89.1	%	76.2	%	13.4	%	N/A		N/A		N/A		N/A
Total Reported weighted average	$	381	93.4	%	90.3	%	12.5	%	$	379	92.6	%	88.5	%	12.2	%	0.5	%	0.8	%	1.8	%	0.3	%


⁽¹⁾	Based on reported sales by all comparable non-anchor tenants that lease individual spaces of 10,000 square feet or less and have occupied the space for at least 24 months.

Pennsylvania Real Estate Investment Trust

Strip and Power Center Occupancy Percentages



	September 30, 2013				September 30, 2012				Change
	Total		Non-Anchor		Total		Non-Anchor		Total		Non-Anchor
Metroplex Shopping Center	98.5	%	98.2	%	100.0	%	100.0	%	(1.5	)%	(1.8	)%
The Court at Oxford Valley	88.5	%	86.7	%	88.6	%	86.9	%	(0.1	)%	(0.2	)%
Red Rose Commons	100.0	%	100.0	%	100.0	%	100.0	%	—	%	—	%
Springfield Park	98.2	%	95.0	%	90.0	%	71.7	%	8.2	%	23.3	%
Whitehall Mall	92.6	%	84.9	%	93.1	%	85.7	%	(0.5	)%	(0.8	)%
Strip and Power Center Weighted Average	94.5	%	92.5	%	94.5	%	92.5	%	—	%	—	%

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants



Tenant ⁽¹⁾	Total Number of Locations	Percentage of Annualized Gross Rent⁽²⁾
Gap, Inc.	41	3.0	%
Limited Brands, Inc.	70	2.8	%
Foot Locker, Inc.	60	2.7	%
J.C. Penney Company, Inc.	28	2.6	%
American Eagle Outfitters, Inc.	40	2.6	%
Sears Holding Corporation	26	2.0	%
Signet Jewelers Limited	38	1.6	%
Zale Corporation	66	1.4	%
Commonwealth of Pennsylvania	2	1.4	%
Luxottica Group S.p.A.	46	1.4	%
Ascena Retail Group, Inc.	44	1.3	%
Abercrombie & Fitch Co.	19	1.3	%
Genesco, Inc.	58	1.3	%
Macy's, Inc.	24	1.2	%
Aeropostale, Inc.	39	1.2	%
The Finish Line, Inc.	27	1.2	%
The Children's Place Retail Stores, Inc.	27	1.1	%
Shoe Show, Inc.	29	1.1	%
Dick's Sporting Goods, Inc.	9	1.1	%
Boscov's Department Store	8	1.1	%
Total Top 20 Tenants	701	33.4	%
Total Leases	2,908	100.00	%


⁽¹⁾	Tenant includes all brands and concepts of the tenant and includes stores that are PREIT owned and not PREIT owned.


⁽²⁾	Includes PREIT’s proportionate share of tenant rent from partnership properties based on PREIT’s ownership percentage in the respective partnerships.

Pennsylvania Real Estate Investment Trust

Lease Expirations as of September 30, 2013

(dollars in thousands except psf amounts)



Non-Anchors ⁽¹⁾
		Gross Leasable Area			Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring	Expiring GLA ⁽²⁾	Percent of Total		Gross Rent in Expiring Year	PREIT’s Share of Gross Rent in Expiring Year ⁽³⁾	Percent of PREIT’s Total		Average Expiring Gross Rent psf
2012 and Prior	164	490,014	4.3	%	17,534	15,560	4.5	%	$	35.78
2013	95	243,183	2.1	%	7,657	7,242	2.1	%	31.49
2014	522	1,569,595	13.9	%	48,347	46,501	13.6	%	30.80
2015	392	1,548,892	13.7	%	48,494	44,408	13.0	%	31.31
2016	372	1,497,185	13.2	%	53,035	48,057	14.1	%	35.42
2017	304	1,067,941	9.4	%	37,643	33,619	9.8	%	35.25
2018	233	1,135,043	10.0	%	37,499	33,872	9.9	%	33.04
2019	162	821,523	7.3	%	27,305	25,142	7.4	%	33.24
2020	130	809,348	7.1	%	24,131	22,608	6.6	%	29.82
2021	122	526,941	4.7	%	19,147	17,166	5.0	%	36.34
2022	131	646,647	5.7	%	21,558	19,176	5.6	%	33.34
Thereafter	180	967,520	8.6	%	32,053	28,688	8.4	%	33.13
Total/Average	2,807	11,323,832	100.0	%	374,403	342,039	100.0	%	$	33.06



Anchors ⁽¹⁾
		Gross Leasable Area			Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring ⁽⁴⁾	Expiring GLA	Percent of Total		Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year ⁽³⁾		Percent of PREIT’s Total		Average Expiring Gross Rent psf
2014	7	673,521	6.3	%	$	2,607	$	2,607	4.8	%	$	3.87
2015	13	1,266,889	11.9	%	6,363		6,363		11.8	%	5.02
2016	20	1,927,216	18.2	%	7,848		7,848		14.5	%	4.07
2017	11	1,398,035	13.2	%	5,477		4,620		8.6	%	3.92
2018	14	1,325,258	12.5	%	5,959		5,959		11.0	%	4.50
2019	15	1,582,695	14.9	%	6,296		5,798		10.7	%	3.98
2020	4	450,227	4.2	%	1,267		1,267		2.3	%	2.81
2021	4	481,791	4.5	%	5,532		4,182		7.8	%	11.48
2022	4	521,173	4.9	%	2,645		2,645		4.9	%	5.08
Thereafter	9	993,146	9.4	%	12,765		12,765		23.6	%	12.85
Total/Average	101	10,619,951	100.0	%	$	56,759	$	54,054	100.0	%	$	5.34


⁽¹⁾	Only includes owned space.


⁽²⁾	Does not include tenants occupying space under license agreements with initial terms of less than one year. The GLA of these tenants is 411,563 square feet.


⁽³⁾	Includes PREIT’s proportionate share of tenant rent from partnership properties based on PREIT’s ownership percentage in the respective partnerships.


⁽⁴⁾	Accounts for all contiguous anchor space as one lease.

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2013

(GLA in thousands)



					Landlord Owned Anchors								Anchor Stores Not Owned							Non-anchor occupied
Properties	State	Ownership	Date Acquired	Year Built/ Last Renovated	Nordstrom	Macy’s	jcpenney	Sears	Boscov’s	Bon-Ton⁽¹⁾	Other(s)	Total	Macy’s	jcpenney	Sears	Boscov’s	Bon-Ton	Other(s)	Total	Large Format	Small Shop	Vacant	Total GLA
Premier Malls
Cherry Hill Mall	NJ	100%	2003	1961/2009	138	—	—	—	—	—	—	138	305	174	—	—	—	—	479	204	439	47	1,307
Dartmouth Mall	MA	100%	1997	1971/2000	—	—	100	108	—	—	—	208	140	—	—	—	—	—	140	142	162	17	669
Jacksonville Mall	NC	100%	2003	1981/2008	—	—	52	117	—	—	73	242	—	—	—	—	—	—	—	99	147	1	489
Lehigh Valley Mall	PA	50%	1973	1977/2007	—	212	—	—	165	—	—	377	—	207	—	—	—	—	207	183	386	16	1,169
Willow Grove Park	PA	100%	2000-03	1982/2001	40	225	125	—	—	—	—	390	237	—	176	—	—	—	413	67	278	14	1,162
Woodland Mall	MI	100%	2005	1968/1998	—	—	—	—	—	—	—	—	157	255	313	—	—	—	725	147	275	4	1,151
Total Premier Malls					178	437	277	225	165	—	73	1,355	839	636	489	—	—	—	1,964	842	1,687	99	5,947
Core Growth Malls
Capital City Mall	PA	100%	2003	1974/2005	—	—	103	101	—	—	—	204	120	—	—	—	—	—	120	81	195	15	615
Crossroads Mall	WV	100%	2003	1981	—	—	90	87	—	—	78	255	—	—	—	—	—	—	—	74	127	19	475
Cumberland Mall	NJ	100%	2005	1973/2003	—	—	51	—	—	—	213	264	—	—	—	155	—	118	273	210	160	34	941
Exton Square Mall	PA	100%	2003	1973/2000	—	—	118	144	178	—	—	440	181	—	96	—	—	—	277	27	271	41	1,056
Francis Scott Key Mall	MD	100%	2003	1978/1991	—	—	101	121	—	—	—	222	139	—	—	—	—	—	139	141	202	8	712
Gadsden Mall	AL	100%	2005	1974/1990	—	—	88	112	—	—	101	301	—	—	—	—	—	—	—	91	97	13	502
The Gallery at Market East ⁽²⁾	PA	100%	2003	1977/1990	—	—	—	133	—	—	621	754	—	—	—	—	—	—	—	119	224	327	1,424
Logan Valley Mall	PA	100%	2003	1960/1997	—	150	146	159	—	—	—	455	—	—	—	—	—	—	—	59	248	20	782
Magnolia Mall	SC	100%	1997	1979/2007	—	—	104	91	—	—	148	343	—	—	—	—	—	—	—	99	172	7	621
Moorestown Mall	NJ	100%	2003	1963/2008	—	—	—	206	203	—	—	409	200	—	—	—	—	121	321	15	170	86	1,001
Patrick Henry Mall	VA	100%	2003	1988/2005	—	—	85	—	—	—	50	135	140	—	—	—	—	145	285	38	239	19	716
Plymouth Meeting Mall	PA	100%	2003	1966/2009	—	—	—	—	189	—	65	254	215	—	—	—	—	—	215	198	208	73	948
The Mall at Prince Georges	MD	100%	1998	1959/2004	—	196	149	—	—	—	135	480	—	—	—	—	—	—	—	127	274	37	918
Springfield Mall	PA	50%	2005	1974/1997	—	—	—	—	—	—	—	—	192	—	—	—	—	196	388	10	197	16	611
Valley Mall	MD	100%	2003	1974/1999	—	—	157	—	—	123	—	280	120	—	123	—	—	—	243	115	245	31	914
Valley View Mall	WI	100%	2003	1980/2001	—	—	96	—	—	—	—	96	100	—	113	—	42	—	255	74	171	10	606
Viewmont Mall	PA	100%	2003	1968/2006	—	—	193	193	—	—	—	386	140	—	—	—	—	—	140	83	154	5	768
Wyoming Valley Mall	PA	100%	2003	1971/2006	—	146	173	118	—	155	—	592	—	—	—	—	—	—	—	104	185	29	910
Core Growth Malls					—	492	1,654	1,465	570	278	1,411	5,870	1,547	—	332	155	42	580	2,656	1,665	3,539	790	14,520

(continued on next page)

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2013 (continued)

(GLA in thousands)



					Landlord Owned Anchors								Anchor Stores Not Owned							Non-anchor occupied
Properties	State	Ownership	Date Acquired	Year Built/ Last Renovated	Nordstrom	Macy’s	jcpenney	Sears	Boscov’s	Bon-Ton⁽¹⁾	Other(s)	Total	Macy’s	jcpenney	Sears	Boscov’s	Bon-Ton	Other(s)	Total	Large Format	Small Shop	Vacant	Total GLA
Opportunistic Malls
Lycoming Mall	PA	100%	2003	1978/2007	—	—	62	130	—	60	81	333	120	—	—	—	—	—	120	150	173	38	814
New River Valley Mall	VA	100%	2003	1988/2007	—	—	50	—	—	—	88	138	—	—	—	—	—	—	—	145	124	56	463
Nittany Mall	PA	100%	2003	1968/1990	—	—	63	98	—	61	—	222	95	—	—	—	—	—	95	13	180	23	533
Palmer Park Mall	PA	100%	1972/2003	1972/1998	—	—	—	—	192	122	—	314	—	—	—	—	—	—	—	—	108	36	458
Uniontown Mall	PA	100%	2003	1972/1990	—	—	63	100	—	80	148	391	—	—	—	—	—	—	—	102	181	25	699
Voorhees Town Center	NJ	100%	2003	1970/2007	—	—	—	—	4	—	—	4	224	—	—	173	—	24	421	68	152	87	732
Washington Crown Center	PA	100%	2003	1969/1999	—	—	—	83	—	78	84	245	140	—	—	—	—	—	140	64	149	76	674
Wiregrass Commons Mall	AL	100%	2003	1986/2008	—	—	—	—	—	—	95	95	—	84	—	—	—	248	332	10	182	17	636
Opportunistic Malls					—	—	238	411	196	401	496	1,742	579	84	—	173	—	272	1,108	552	1,249	358	5,009
Non Core Malls
Beaver Valley Mall	PA	100%	2002	1970/1991	—	—	126	191	194	—	—	511	205	—	—	—	—	—	205	175	204	59	1,154
Chambersburg Mall	PA	100%	2003	1982	—	—	61	56	—	55	70	242	—	—	—	—	—	—	—	20	142	51	455
North Hanover Mall	PA	100%	2003	1967/1999	—	—	99	104	—	—	51	254	—	—	—	—	—	—	—	21	106	72	453
South Mall	PA	100%	2003	1975/1992	—	—	—	—	—	102	38	140	—	—	—	—	—	—	—	149	94	23	406
Non Core Malls					—	—	286	351	194	157	159	1,147	205	—	—	—	—	—	205	365	546	205	2,468
Strip and Power Centers
Metroplex Shopping Center	PA	50%	1999	2001	—	—	—	—	—	—	67	67	—	—	—	—	—	301	301	354	49	7	778
The Court at Oxford Valley	PA	50%	1997	1996	—	—	—	—	—	—	60	60	—	—	—	—	—	247	247	290	54	53	704
Red Rose Commons	PA	50%	1998	1998	—	—	—	—	—	—	—	—	—	—	—	—	—	200	200	248	15	—	463
Springfield Park	PA	50%	1997/1998	1997/1998	—	—	—	—	—	—	83	83	—	—	—	—	—	146	146	21	22	2	274
Whitehall Mall	PA	50%	1964	1964/1998	—	—	—	213	—	—	82	295	—	—	—	—	—	—	—	196	41	42	574
Strip and Power Centers					—	—	—	213	—	—	292	505	—	—	—	—	—	894	894	1,109	181	104	2,793
Portfolio Totals					178	929	2,455	2,665	1,125	836	2,431	10,619	3,170	720	821	328	42	1,746	6,827	4,533	7,202	1,556	30,737


⁽¹⁾	Does not include The Bon-Ton store located at Westgate.


⁽²⁾	Includes 907 Market Street, which was acquired in April 2013.

Pennsylvania Real Estate Investment Trust

Department Store Lease Expirations as of September 30, 2013



	Department Store Tenants
Properties	Belk	Bon-Ton⁽¹⁾	Boscov’s	Burlington Coat Factory	Dillard’s	jcpenney	Kohl’s	Lord & Taylor	Macy’s	Nordstrom	Sears	Target
Premier Malls
Cherry Hill Mall	—	—	—	—	—	(2)	—	—	(2)	2025	—	—
Dartmouth Mall	—	—	—	—	—	2019	—	—	(2)	—	2016	—
Jacksonville Mall	2016	—	—	—	—	2015	—	—	—	—	2016	—
Lehigh Valley Mall	—	—	2017	—	—	(2)	—	—	2017	—	—	—
Willow Grove Park ⁽³⁾	—	—	—	—	—	2032	—	—	2022, (2)	2022	(2)	—
Woodland Mall	—	—	—	—	—	(2)	(2)	—	(2)	—	(2)	—

Core Growth Malls
Capital City Mall	—	—	—	—	—	2015	—	—	(2)	—	2014	—
Crossroads Mall	2014	—	—	—	—	2016	—	—	—	—	2016	—
Cumberland Mall	—	—	(2)	2019	—	2018	—	—	—	—	—	—
Exton Square Mall ⁽⁴⁾	—	—	2019	—	—	2020	—	—	(2)	—	2019, (2)	—
Francis Scott Key Mall	—	—	—	—	—	2016	—	—	(2)	—	2018	—
Gadsden Mall	2019	—	—	—	—	2028	—	—	—	—	2019	—
The Gallery at Market East ⁽⁵⁾	—	—	—	2032	—	—	—	—	—	—	2014	—
Logan Valley Mall	—	—	—	—	—	2017	—	—	2020	—	2016	—
Magnolia Mall	2016	—	—	—	—	2017	—	—	—	—	2014	—
Moorestown Mall	—	—	2015	—	—	—	—	(2)	(2)	—	2022	—
Patrick Henry Mall	—	—	—	—	(2)	2015	—	—	(2)	—	—	—
Plymouth Meeting Mall	—	—	2016	—	—	—	—	—	(2)	—	—	—
The Mall at Prince Georges	—	—	—	—	—	2016	—	—	2018	—	—	2019
Springfield Mall	—	—	—	—	—	—	—	—	(2)	—	—	(2)
Valley Mall	—	2019	—	—	—	2014	—	—	(2)	—	(2)	—
Valley View Mall	—	(2)	—	—	—	2015	—	—	(2)	—	(2)	—
Viewmont Mall	—	—	—	—	—	2015	—	—	(2)	—	2015	—
Wyoming Valley Mall	—	2017	—	—	—	2017	—	—	2017	—	2016	—

(continued on next page)

Pennsylvania Real Estate Investment Trust

Department Store Lease Expirations as of September 30, 2013 (continued)



	Department Store Tenants
Properties	Belk	Bon-Ton	Boscov’s	Burlington Coat Factory	Dillard’s	jcpenney	Kohl’s	Lord & Taylor	Macy’s	Nordstrom	Sears	Target
Opportunistic Malls
Lycoming Mall	—	2016	—	2019	—	2015	—	—	(2)	—	2018	—
New River Valley Mall ⁽⁶⁾	2020	—	—	—	—	2018	—	—	—	—	—	—
Nittany Mall	—	2018	—	—	—	2015	—	—	(2)	—	2015	—
Palmer Park Mall	—	2019	2018	—	—	—	—	—	—	—	—	—
Uniontown Mall	—	2016	—	2019	—	2015	—	—	—	—	2018	—
Voorhees Town Center	—	—	(2)	—	—	—	—	—	(2)	—	—	—
Washington Crown Center	—	2018	—	—	—	—	—	—	(2)	—	2019	—
Wiregrass Commons Mall	(2)	—	—	2020	(2)	(2)	—	—	—	—	—	—

Non Core Malls
Beaver Valley Mall	—	—	2018	—	—	2017	—	—	(2)	—	2016	—
Chambersburg Mall	—	2016	—	2019	—	2017	—	—	—	—	2015	—
North Hanover Mall	—	—	—	—	—	2027	—	—	—	—	2014	—
South Mall	—	2016	—	—	—	—	—	—	—	—	—	—

Strip and Power Centers
Metroplex Shopping Center	—	—	—	—	—	—	—	—	—	—	—	(2)
The Court at Oxford Valley	—	—	—	—	—	—	—	—	—	—	—	—
Red Rose Commons	—	—	—	—	—	—	—	—	—	—	—	—
Springfield Park	—	—	—	—	—	—	—	—	—	—	—	(2)
Whitehall Mall	—	—	—	—	—	—	2017	—	—	—	2021	—
Total PREIT Owned Department Stores	5	9	6	6	—	24	1	—	5	2	21	1
Total Non-PREIT Owned Department Stores	1	1	2	—	2	4	1	1	19	—	5	4


⁽¹⁾	Total PREIT owned department stores does not include The Bon-Ton store located at Westgate.


⁽²⁾	Department store is not PREIT owned.


⁽³⁾	The property has a Macy’s that is PREIT owned and a Bloomingdale’s that is not PREIT owned.


⁽⁴⁾	The property has a Sears that is PREIT owned and a K-Mart that is not PREIT owned.


⁽⁵⁾	Includes K-Mart located at 907 Market Street, which was acquired in April 2013.


⁽⁶⁾	Sears at this property closed July 15.

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method ⁽¹⁾

(in thousands, except per share amounts)



	September 30, 2013									December 31, 2012
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,422,311		$	217,503		$	3,639,814		$	3,395,681		$	216,939		$	3,612,620
Construction in progress	88,390			1,093			89,483			68,619			811			69,430
Land held for development	10,450			—			10,450			13,240			—			13,240
Total investments in real estate	3,521,151			218,596			3,739,747			3,477,540			217,750			3,695,290
Accumulated depreciation	(993,735		)	(84,780		)	(1,078,515		)	(907,928		)	(80,112		)	(988,040		)
Net investments in real estate	2,527,416			133,816			2,661,232			2,569,612			137,638			2,707,250
Investments in partnerships, at equity	15,615			(15,615		)	—			14,855			(14,855		)	—
Other assets:
Cash and cash equivalents	24,893			5,692			30,585			33,990			4,883			38,873
Rent and other receivables ⁽²⁾	35,535			1,908			37,443			38,473			1,824			40,297
Intangible assets, net	9,447			78			9,525			8,673			108			8,781
Deferred costs and other assets, net	100,223			15,287			115,510			97,399			15,585			112,984
Assets held for sale	—			—			—			114,622			—			114,622
Total assets	$	2,713,129		$	141,166		$	2,854,295		$	2,877,624		$	145,183		$	3,022,807
LIABILITIES AND EQUITY
Liabilities:
Mortgage loans	$	1,538,102		$	199,285		$	1,737,387		$	1,718,052		$	201,717		$	1,919,769
Term Loans	—			—			—			182,000			—			182,000
Revolving Facility	90,000			—			90,000			—			—			—
Tenants’ deposits and deferred rent	15,411			3,301			18,712			14,862			4,027			18,889
Distributions in excess of partnership investments	64,187			(64,187		)	—			64,874			(64,874		)	—
Fair value of derivative instruments	1,387			—			1,387			9,742			—			9,742
Liabilities related to assets held for sale	—			—			—			102,417			—			102,417
Other liabilities	72,315			2,767			75,082			72,448			4,313			76,761
Total liabilities	1,781,402			141,166			1,922,568			2,164,395			145,183			2,309,578
Equity:
Total equity	931,727			—			931,727			713,229			—			713,229
Total liabilities and equity	$	2,713,129		$	141,166		$	2,854,295		$	2,877,624		$	145,183		$	3,022,807


⁽¹⁾	Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties.


⁽²⁾	Total includes straight line rent of $28.6 million ($26.4 million consolidated, $2.2 million unconsolidated) as of September 30, 2013 and $27.5 million ($25.2 million consolidated, $2.3 million unconsolidated) as of December 31, 2012.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾

(in thousands)



	September 30, 2013									December 31, 2012
	Operating Properties and Land Held for Development		Construction in Progress			Accumulated Depreciation		Net Real Estate		Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Malls
Beaver Valley Mall	$	70,849	$	—		$	26,606	$	44,243	$	70,831	$	—	$	24,292	$	46,539
Capital City Mall	98,650		—			30,498		68,152		96,517		1,041		27,761		69,797
Chambersburg Mall ⁽²⁾	10,526		—			4,109		6,417		38,432		—		9,890		28,542
Cherry Hill Mall	460,097		50			134,260		325,887		457,756		30		117,401		340,385
Crossroads Mall	46,310		333			12,498		34,145		45,719		264		11,192		34,791
Cumberland Mall	66,396		—			14,695		51,701		65,054		—		13,005		52,049
Dartmouth Mall	63,943		—			30,858		33,085		62,841		—		29,459		33,382
Exton Square Mall	151,165		2,403			36,296		117,272		150,680		129		33,389		117,420
Francis Scott Key Mall	80,138		597			24,308		56,427		79,417		92		22,075		57,434
Gadsden Mall	62,512		—			13,867		48,645		63,295		—		13,474		49,821
The Gallery at Market East	242,926		8,632			43,448		208,110		183,572		5,742		35,470		153,844
Jacksonville Mall	81,807		—			23,578		58,229		81,390		—		21,399		59,991
Logan Valley Mall	97,794		—			28,848		68,946		97,679		—		27,029		70,650
Lycoming Mall	78,535		—			23,095		55,440		78,099		—		21,033		57,066
Magnolia Mall	91,665		—			32,935		58,730		88,976		59		30,183		58,852
Moorestown Mall	93,787		18,139			32,736		79,190		93,454		2,943		30,495		65,902
New River Valley Mall	58,972		—			23,623		35,349		58,804		—		21,249		37,555
Nittany Mall	44,456		—			12,632		31,824		44,432		—		11,644		32,788
North Hanover Mall ⁽³⁾	22,846		8			6,413		16,441		29,973		14		6,305		23,682
Palmer Park Mall	34,587		—			14,124		20,463		34,536		—		13,562		20,974
Patrick Henry Mall	144,185		—			46,655		97,530		143,422		—		42,453		100,969
Plymouth Meeting Mall	166,608		522			45,736		121,394		165,178		76		39,975		125,279
The Mall at Prince Georges	102,669		1,512			42,274		61,907		102,213		—		39,603		62,610
South Mall	36,042		—			8,480		27,562		35,924		—		7,796		28,128
Uniontown Mall	42,359		—			13,869		28,490		42,173		—		12,652		29,521
Valley Mall	97,477		—			28,223		69,254		95,160		—		26,094		69,066
Valley View Mall	69,393		—			17,753		51,640		68,486		—		16,242		52,244
Viewmont Mall	91,982		—			25,576		66,406		91,851		—		23,268		68,583
Voorhees Town Center	84,804		41			27,016		57,829		91,495		1,447		22,568		70,374
Washington Crown Center	41,458		2,152			15,011		28,599		40,802		29		14,359		26,472
Willow Grove Park	231,032		(15		)	63,220		167,797		230,195		5		57,502		172,698
Wiregrass Commons Mall	54,128		—			14,233		39,895		53,897		—		12,693		41,204
Woodland Mall	191,013		—			43,272		147,741		188,121		—		38,681		149,440
Wyoming Valley Mall	109,685		—			32,962		76,723		109,288		—		30,018		79,270
Total Consolidated Malls	3,420,796		34,374			993,707		2,461,463		3,379,662		11,871		904,211		2,487,322
Unconsolidated Malls
Lehigh Valley Mall	45,641		255			21,564		24,332		45,483		32		20,484		25,031
Springfield Mall	56,920		6			14,780		42,146		56,766		6		13,526		43,246
Total Unconsolidated Malls	102,561		261			36,344		66,478		102,249		38		34,010		68,277
TOTAL MALLS	$	3,523,357	$	34,635		$	1,030,051	$	2,527,941	$	3,481,911	$	11,909	$	938,221	$	2,555,599

(continued on next page)

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾ (continued)

(in thousands)



	September 30, 2013								December 31, 2012
	Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Strip and Power Centers
The Commons at Magnolia	$	—	$	—	$	—	$	—	$	12,441	$	—	$	3,693	$	8,748
Monroe Marketplace ⁽⁴⁾	1,515		—		28		1,487		3,578		—		24		3,554
Total Consolidated Strip and Power Centers	1,515		—		28		1,487		16,019		—		3,717		12,302
Unconsolidated Strip and Power Centers
Metroplex Shopping Center	42,890		—		20,113		22,777		42,890		—		18,911		23,979
The Court at Oxford Valley	28,344		62		10,163		18,243		27,953		4		9,747		18,210
Red Rose Commons	13,617		1		4,920		8,698		13,617		1		4,652		8,966
Springfield Park	7,196		—		1,950		5,246		7,195		—		1,837		5,358
Whitehall Mall	16,645		—		9,420		7,225		16,785		7		9,243		7,549
Total Unconsolidated Strip and Power Centers	108,692		63		46,566		62,189		108,440		12		44,390		64,062
TOTAL STRIP AND POWER CENTERS	$	110,207	$	63	$	46,594	$	63,676	$	124,459	$	12	$	48,107	$	76,364
Consolidated Properties Under Development
Springhills	$	—	$	19,230	$	—	$	19,230	$	—	$	21,961	$	—	$	21,961
White Clay Point	—		34,786		—		34,786		—		34,787		—		34,787
Total Consolidated Properties Under Development	—		54,016		—		54,016		—		56,748		—		56,748
Unconsolidated Properties Under Development
Pavilion at Market East	6,250		769		1,870		5,149		6,250		761		1,712		5,299
Total Unconsolidated Properties Under Development	6,250		769		1,870		5,149		6,250		761		1,712		5,299
Other Properties
Land held for development - consolidated ⁽⁵⁾	10,450		—		—		10,450		13,240		—		—		13,240
Total Other Properties	10,450		—		—		10,450		13,240		—		—		13,240
TOTAL DEVELOPMENT AND OTHER	$	16,700	$	54,785	$	1,870	$	69,615	$	19,490	$	57,509	$	1,712	$	75,287
TOTAL INVESTMENT IN REAL ESTATE	$	3,650,264	$	89,483	$	1,078,515	$	2,661,232	$	3,625,860	$	69,430	$	988,040	$	2,707,250
CONSOLIDATED PROPERTIES	$	3,432,761	$	88,390	$	993,735	$	2,527,416	$	3,408,921	$	68,619	$	907,928	$	2,569,612
UNCONSOLIDATED PROPERTIES	217,503		1,093		84,780		133,816		216,939		811		80,112		137,638
TOTAL INVESTMENT IN REAL ESTATE	$	3,650,264	$	89,483	$	1,078,515	$	2,661,232	$	3,625,860	$	69,430	$	988,040	$	2,707,250


⁽¹⁾	Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties.


⁽²⁾	Reflects impairment of $21.5 million recorded in the 3rd Quarter of 2013.


⁽³⁾	Reflects impairment of $6.3 million recorded in the 3rd Quarter of 2013.


⁽⁴⁾	Consists of two parcels remaining after sale of the property in 2010.


⁽⁵⁾	Reflects impairment of $2.2 million recorded in the 3rd Quarter of 2013.

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)



	Quarter Ended September 30, 2013								Nine Months Ended September 30, 2013
	Consolidated		Unconsolidated		Discontinued Operations		Total		Consolidated		Unconsolidated		Discontinued Operations		Total
Redevelopment projects with incremental GLA and/or anchor replacement ⁽¹⁾	$	16,264	$	103	$	—	$	16,367	$	28,644	$	446	$	—	$	29,090
New development projects	—		—		—		—		—		7		—		7
Tenant allowances	5,068		20		—		5,088		13,816		201		—		14,017
Recurring capital expenditures:
CAM expenditures	4,527		278		—		4,805		6,359		481		—		6,840
Non-CAM expenditures	1,010		—		—		1,010		1,689		—		—		1,689
Total recurring capital expenditures	5,537		278		—		5,815		8,048		481		—		8,529
Total	$	26,869	$	401	$	—	$	27,270	$	50,508	$	1,135	$	—	$	51,643


⁽¹⁾	Net of any tenant reimbursements, parcel sales, tax credits or other incentives.

Pennsylvania Real Estate Investment Trust

Debt Analysis as of September 30, 2013

(in thousands)



	Outstanding Debt
	Fixed Rate⁽¹⁾			% of Total Indebtedness		Variable Rate			% of Total Indebtedness		Total			% of Total Indebtedness
Consolidated mortgage loans payable	$	1,485,741		81.3	%	$	52,361		2.9	%	$	1,538,102		84.2	%
Unconsolidated mortgage loans payable	195,630			10.7	%	3,655			0.2	%	199,285			10.9	%
2013 Credit Facility	—			—	%	90,000			4.9	%	90,000			4.9	%
TOTAL OUTSTANDING DEBT	$	1,681,371		92.0	%	$	146,016		8.0	%	$	1,827,387		100.0	%
AVERAGE STATED INTEREST RATE	5.25		%			2.05		%			4.99		%


⁽¹⁾	Includes variable rate debt swapped to fixed rate debt.



		Average Debt Balance
		Mortgage Debt⁽¹⁾			2013 Revolving Facility		TOTAL
Beginning Balance	6/30/2013	$	1,868,631		$	35,000	$	1,903,631
Mortgage loan amortization		(5,059		)	—		(5,059		)
Logan Valley Mall paydown		(12,000		)	—		(12,000		)
Wyoming Valley Mall repayment		(65,000		)	—		(65,000		)
Christiana Center mortgage assumption		(49,185		)	—		(49,185		)
2013 Revolving Facility, net		—			55,000		55,000
Ending Balance	9/30/2013	$	1,737,387		$	90,000	$	1,827,387
Weighted Average Balance		$	1,841,810		$	58,315	$	1,900,125


⁽¹⁾	Includes principal amortization of mortgage loans from a property classified as held for sale.



	Debt Maturities⁽¹⁾
Year	Scheduled Amortization		Mortgage Balance at Maturity		2013 Revolving Facility		Total Debt
2013	$	5,082	$	—	$	—	$	5,082
2014 ⁽²⁾	21,181		117,733		—		138,914
2015	24,825		306,019		—		330,844
2016	15,117		243,745		90,000		348,862
2017	14,339		153,283		—		167,622
2018	13,985		145,677		—		159,662
Thereafter	47,674		628,727		—		676,401
	$	142,203	$	1,595,184	$	90,000	$	1,827,387


⁽¹⁾	The weighted average period to mortgage maturity is 5.41 years, excluding extension options. Includes 100% of mortgage debt from consolidated properties and our share of mortgage debt from unconsolidated properties, based on our ownership percentage.


⁽²⁾	The mortgage balance at maturity for this year includes the amounts due for Exton Square Mall which was repaid in full in October 2013.



Weighted Average Mortgage Interest Rates
Year	Balance		Interest Rate
2014	117,933		5.24	%
2015	322,095		5.69	%
2016	256,275		5.30	%
2017	153,655		5.45	%
Thereafter	887,429		4.85	%
Total	$	1,737,387	5.15	%

Pennsylvania Real Estate Investment Trust

Debt Schedule as of September 30, 2013

(in thousands)



	Debt ⁽¹⁾		Interest Rate		Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Mortgage Loans
Exton Square Mall ⁽²⁾	$	66,933	7.50	%	$	5,873	$	66,733	Jan 2014	Jan 2014
Springfield East ⁽³⁾	2,142		5.39	%	92		2,061		Mar 2015	Mar 2020
Springfield Park ⁽³⁾	2,515		5.39	%	108		2,419		Mar 2015	Mar 2020
Magnolia Mall	57,375		5.33	%	4,413		54,965		July 2015	July 2015
Patrick Henry Mall	87,834		6.34	%	7,743		83,210		Oct 2015	Oct 2015
Springfield Mall ⁽³⁾	32,037		4.77	%	2,118		30,740		Nov 2015	Nov 2015
Willow Grove Park	140,192		5.65	%	11,083		132,624		Dec 2015	Dec 2015
Valley Mall	82,885		5.49	%	5,014		78,996		Mar 2016	Mar 2016
Woodland Mall	147,029		5.58	%	10,760		140,484		Apr 2016	Apr 2016
801 Market Street ⁽³⁾	25,000		3.20	%	1,554		24,265		July 2016	July 2018
The Mall at Prince Georges	150,000		5.51	%	8,269		150,000		June 2017	June 2017
Francis Scott Key Mall ⁽³⁾	62,625		5.26	%	3,297		62,625		Mar 2018	Mar 2018
Viewmont Mall ⁽³⁾	48,000		5.50	%	2,638		48,000		Mar 2018	Mar 2018
Lycoming Mall	35,075		3.72	%	3,001		30,907		Mar 2018	Mar 2018
Whitehall Mall	5,359		7.00	%	574		4,145		Nov 2018	Nov 2018
New River Valley Mall ⁽³⁾⁽⁴⁾	28,050		4.38	%	1,229		28,050		Jan 2019	Jan 2019
Valley View Mall	30,762		5.95	%	2,290		27,161		July 2020	July 2020
Lehigh Valley Mall	67,030		5.88	%	4,972		58,519		July 2020	July 2020
Red Rose Commons	14,498		5.14	%	978		12,379		July 2021	July 2021
The Court at Oxford Valley	29,565		5.56	%	2,058		25,782		July 2021	July 2021
Capital City Mall	64,442		5.30	%	4,379		54,715		Mar 2022	Mar 2022
Cumberland Mall	50,770		4.40	%	3,433		38,157		Aug 2022	Aug 2022
Cherry Hill Mall	300,000		3.90	%	11,700		252,568		Sept 2022	Sept 2022
Dartmouth Mall	66,534		3.97	%	3,825		53,300		Apr 2023	Apr 2023
Metroplex Shopping Center	42,484		5.00	%	2,818		33,978		Oct 2023	Oct 2023
Beaver Valley Mall ⁽⁵⁾	42,235		9.36	%	3,972		44,118		Apr 2032	Apr 2032
Total Fixed Rate Mortgage Loans	1,681,371		5.25	%	108,191		1,540,901
Variable Rate Mortgage Loans
Logan Valley Mall	$	51,000	2.28	%	$	1,164	$	51,000	Sept 2014	Sept 2015
801 Market Street	1,361		2.28	%	—		—		July 2016	July 2018
Pavilion East Associates	3,655		2.94	%	253		3,283		Aug 2017	Aug 2017
Total Variable Rate Mortgage Loans	56,016		2.32	%	1,417		54,283
Total Mortgage Loans	$	1,737,387	5.15	%	$	109,608	$	1,595,184
CONSOLIDATED MORTGAGE LOANS	$	1,538,102	5.12	%	$	95,637	$	1,421,878
UNCONSOLIDATED MORTGAGE LOANS	199,285		5.38	%	13,971		173,306
2013 REVOLVING FACILITY	90,000		1.88	%	1,694		90,000		Apr 2016	Apr 2018
Total	$	1,827,387	4.99	%	$	111,302	$	1,685,184
AMORTIZATION OF DEFERRED FINANCING FEES	—		0.17	%	—		—
EFFECTIVE INTEREST RATE	$	1,827,387	5.16	%	$	111,302	$	1,685,184


⁽¹⁾	Includes 100% of debt from consolidated properties and our share of debt from unconsolidated properties, based on our ownership percentage.


⁽²⁾	The mortgage loan on this property was repaid in full in October 2013, using $60.0 million from our Credit Facility and $6.9 million from available working capital.


⁽³⁾	All or a portion of the mortgage loan has been effectively swapped to the fixed interest rate presented.


⁽⁴⁾	Payments are of interest only until 2017, then principal and interest at a rate to be determined.


⁽⁵⁾	This mortgage loan has passed its Anticipated Repayment Date. The final maturity date is April 2032.

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios ⁽¹⁾




	September 30, 2013
Consolidated Liabilities to Gross Asset Value	48.73	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 60%
Secured Indebtedness to Gross Asset Value	44.24	%
Secured indebtedness to Gross Asset Value may not exceed 60%
Adjusted EBITDA to Fixed Charges	1.76
Adjusted EBITDA may not be less than 1.45 to 1.00
Unencumbered Adjusted NOI to Unsecured Interest Expense	8.02
Unencumbered Adjusted NOI to Unsecured Interest Expense may not be less than 1.75 to 1.00
Unencumbered Debt Yield	71.07	%
The ratio of Unencumbered Adjusted NOI to Unsecured Debt may not be less than 12%

⁽¹⁾

The 2013 Revolving Facility agreement dated as of April 17, 2013, contains affirmative and negative covenants customarily found in such agreements, including requirements that the Company, on a consolidated basis, maintain certain financial ratios. All capitalized terms used on this page have the meanings ascribed to such terms in the 2013 Revolving Facility. In addition to the ratios set forth herein, there are several other ratios under the 2013 Revolving Facility with which the Company must comply, all of which are described in the Company’s Current Report on Form 8-K dated April 18, 2013.

Pennsylvania Real Estate Investment Trust

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 commonly used by REITs, as net income excluding gains and losses on sales of operating properties (computed in accordance with GAAP), plus real estate depreciation and amortization; and after adjustments for unconsolidated partnerships and joint ventures to reflect funds from operations on the same basis. We compute 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 we do. In 2011, NAREIT reiterated its established guidance that excluding impairment write downs of depreciable real estate is consistent with the NAREIT definition.

We use FFO and FFO per diluted share and unit of limited partnership interest in our operating partnership (“OP Unit”) in measuring our performance against our peers and as one of the performance measures for determining incentive compensation amounts earned under certain of our performance-based executive compensation programs. FFO is a commonly used measure of operating performance and profitability among REITs, and we use FFO and FFO per diluted share and OP Unit as supplemental non-GAAP measures to compare our performance for different periods to that of our industry peers.

FFO does not include gains and losses on sales of operating 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 NOI. 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 our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that net income is the most directly comparable GAAP measurement to FFO.

We also present Funds From Operations, as adjusted, and Funds From Operations per diluted share and OP Unit, as adjusted, which are non-GAAP measures, for the three and nine months ended September 30, 2013 and 2012 to show the effect of the provision for executive separation expense, gain on hedge ineffectiveness and accelerated amortization of deferred financing costs, which had a significant effect on our results of operations, but is not, in our opinion, indicative of our operating performance.

We believe 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 gains on sales of operating real estate and depreciation and amortization of real estate, among others. We believe that Funds From Operations, as adjusted, is helpful to management and investors as a measure of operating performance because it adjusts FFO to exclude items that management does not believe are indicative of its operating performance, such as provision for executive separation expense.

Net Operating Income (NOI)

NOI (a non-GAAP measure) is derived from real estate revenue (determined in accordance with generally accepted accounting principles, or GAAP, including lease termination revenue) minus operating expenses (determined in accordance with GAAP), plus our share of revenue and operating expenses of our partnership investments, and includes real estate revenue and operating expenses from properties included in discontinued operations, if any. 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 our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. It is not indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that NOI 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. We believe that net income is the most directly comparable GAAP measurement to NOI.

NOI excludes interest and other income, general and administrative expenses, interest expense, depreciation and amortization, gains on sales of interests in real estate, gains on sales of non-operating real estate, gains on sales of discontinued operations, gain on extinguishment of debt, impairment losses, project costs and other expenses.

Same Store NOI

Same store NOI is calculated using retail properties owned for the full periods presented and exclude properties acquired or disposed of or reclassified as held for sale during the periods presented.

Funds Available for Distribution (FAD)

FAD is a measure of a real estate company’s cash flows generated by operations and capacity to pay dividends. The Company calculates FAD by starting with FFO as Adjusted and subtracting (1) straight-line rent, (2) normalized recurring capital expenditures that are capitalized but necessary to maintain our properties, (3) operational tenant allowances, (4) capitalized leasing costs, (5) amortization of debt premium, and (6) amortization of above- and below-market lease intangibles.

We believe that net income is the most directly comparable GAAP measurement to FAD. We believe FAD provides a meaningful indicator of its ability to fund cash needs and to make cash distributions to equity owners. In addition, we believe that 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.

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