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	q413supplemental8k.htm

Exhibit 99.1

Pennsylvania Real Estate Investment Trust ^®

Supplemental Financial and Operating Information

Quarter Ended December 31, 2013

www.preit.com

NYSE: PEI

NYSE: PEIPRA, PEIPRB

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

December 31, 2013



Table of Contents
Introduction
Company Information	1
Market Capitalization and Capital Resources	2
Operating Results
Statement of Operations - Proportionate Consolidation Method - Quarters Ended December 31, 2013 and December 31, 2012	3
Statement of Operations - Proportionate Consolidation Method - Twelve Months Ended December 31, 2013 and December 31, 2012	4
Statement of Net Operating Income - Quarters and Twelve Months Ended December 31, 2013 and December 31, 2012	5
Computation of Earnings Per Share	6
Funds From Operations and Funds Available For Distribution - Quarters Ended December 31, 2013 and December 31, 2012	7
Funds From Operations and Funds Available For Distribution - Twelve Months Ended December 31, 2013 and December 31, 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	27

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 December 31, 2013, the Company owned interests in 43 retail properties, 40 of which are operating retail properties and three are development properties. The 40 operating retail properties have a total of 30.4 million square feet and include 35 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 December 31,						Year Ended December 31,
	2013			2012			2013			2012			2011
TRADING INFORMATION
Common Shares
High Price per share	$	19.58		$	17.90		$	22.54		$	17.90		$	17.34
Low Price per share	$	16.61		$	15.42		$	14.20		$	10.49		$	6.50
Closing Share Price (at the end of period)	$	18.98		$	17.64		$	18.98		$	17.64		$	10.44
Series A Preferred Shares
High Price per share	$	25.89		$	26.97		$	28.06		$	27.33		$	—
Low Price per share	$	24.77		$	25.18		$	24.77		$	24.95		$	—
Closing Share Price (at the end of period)	$	25.16		$	26.28		$	25.16		$	26.28		$	—
Series B Preferred Shares
High Price per share	$	24.64		$	25.54		$	26.86		$	25.54		$	—
Low Price per share	$	23.05		$	24.51		$	23.05		$	24.51		$	—
Closing Share Price (at the end of period)	$	23.73		$	25.27		$	23.73		$	25.27		$	—
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding	68,293			56,331			68,293			56,331			55,677
OP Units Outstanding	2,129			2,301			2,129			2,301			2,329
Total Common Shares and OP Units Outstanding	70,422			58,632			70,422			58,632			58,006
Equity Market Capitalization—Common Shares and OP Units	$	1,336,614		$	1,034,273		$	1,336,614		$	1,034,273		$	605,581
Series A Preferred Shares, Nominal Value	115,000			115,000			115,000			115,000			—
Series B Preferred Shares, Nominal Value	86,250			86,250			86,250			86,250			—
Total Equity Market Capitalization	$	1,537,864		$	1,235,523		$	1,537,864		$	1,235,523		$	605,581
DEBT CAPITALIZATION ⁽¹⁾
Secured Debt Balance ⁽²⁾⁽³⁾	$	1,701,101		$	2,101,769		$	1,701,101		$	2,101,769		$	2,230,645
Unsecured Debt Balance ⁽⁴⁾	130,000			—			130,000			—			136,900
Debt Capitalization	1,831,101			2,101,769			1,831,101			2,101,769			2,367,545
TOTAL MARKET CAPITALIZATION	$	3,368,965		$	3,337,292		$	3,368,965		$	3,337,292		$	2,973,126
Equity Capitalization/Total Market Capitalization	45.6		%	37.0		%	45.6		%	37.0		%	20.4		%
Debt Capitalization/Total Market Capitalization	54.4		%	63.0		%	54.4		%	63.0		%	79.6		%
Unsecured Debt Balance/Total Debt	7.1		%	—		%	7.1		%	—		%	5.8		%
DISTRIBUTIONS PER COMMON SHARE
Ordinary Dividends	$	—		$	—		$	—		$	—		$	0.37
Capital Gain Distributions ⁽⁵⁾	—			—			—			—			0.01
Non-Dividend Distributions	0.20			0.16			0.74			0.63			0.22
Distributions per common share	$	0.20		$	0.16		$	0.74		$	0.63		$	0.60
Annualized Dividend Yield ⁽⁶⁾	4.2		%	3.6		%	3.9		%	3.6		%	5.7		%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	41,867		$	38,873		$	41,867		$	38,873		$	27,481
Revolving Facility	400,000			250,000			400,000			250,000			250,000
Amount Outstanding	(130,000		)	—			(130,000		)	—			(95,000		)
Available Revolving Facility ⁽⁷⁾	270,000			250,000			270,000			250,000			155,000
TOTAL	$	311,867		$	288,873		$	311,867		$	288,873		$	182,481
Shelf Registration	$	568,750		$	798,750		$	568,750		$	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 December 31, 2011.


⁽³⁾	The secured debt balance includes Revolving Facility balance of $95,000 as of December 31, 2011.


⁽⁴⁾	The unsecured debt balance includes a Revolving Facility balance of $130,000 as of December 31, 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⁾	Based on closing share price at the end of the period.


⁽⁷⁾	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 December 31, 2013 and December 31, 2012

Proportionate Consolidation Method

(in thousands)



	Quarter Ended December 31, 2013												Quarter Ended December 31, 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	$	75,514		$	6,983		$	405		$	82,902		$	73,253		$	6,779		$	6,622		$	86,654
Expense reimbursements	31,842			2,832			135			34,809			29,523			2,591			1,566			33,680
Percentage rent	3,574			127			—			3,701			3,615			143			82			3,840
Lease termination revenue	998			96			30			1,124			62			16			—			78
Other real estate revenue	6,009			474			64			6,547			6,009			417			292			6,718
Total real estate revenue	117,937			10,512			634			129,083			112,462			9,946			8,562			130,970
Other income	1,459			—			—			1,459			1,280			—			—			1,280
Total revenue	119,396			10,512			634			130,542			113,742			9,946			8,562			132,250
EXPENSES:
Operating expenses:
CAM and real estate taxes	(36,727		)	(2,273		)	(383		)	(39,383		)	(33,793		)	(2,038		)	(3,270		)	(39,101		)
Utilities	(5,043		)	(207		)	(28		)	(5,278		)	(4,619		)	(282		)	(93		)	(4,994		)
Other operating expenses	(5,311		)	(712		)	112			(5,911		)	(5,052		)	(729		)	(572		)	(6,353		)
Total operating expenses	(47,081		)	(3,192		)	(299		)	(50,572		)	(43,464		)	(3,049		)	(3,935		)	(50,448		)
Depreciation and amortization	(36,406		)	(1,844		)	(87		)	(38,337		)	(33,484		)	(1,859		)	(2,344		)	(37,687		)
Other expenses:
General and administrative expenses	(10,395		)	—			—			(10,395		)	(8,720		)	—			—			(8,720		)
Provision for employee separation expense	—			—			—			—			(3,683		)	—			—			(3,683		)
Project costs and other expenses	(561		)	—			—			(561		)	(1,159		)	—			—			(1,159		)
Total other expenses	(10,956		)	—			—			(10,956		)	(13,562		)	—			—			(13,562		)
Interest expense, net⁽²⁾	(20,227		)	(2,779		)	—			(23,006		)	(30,587		)	(2,809		)	(1,171		)	(34,567		)
Total expenses	(114,670		)	(7,815		)	(386		)	(122,871		)	(121,097		)	(7,717		)	(7,450		)	(136,264		)
Income (loss) before equity in income of partnerships and discontinued operations	4,726			2,697			248			7,671			(7,355		)	2,229			1,112			(4,014		)
Equity in income of partnerships	2,697			(2,697		)	—			—			2,229			(2,229		)	—			—
Income (loss) from continuing operations	7,423			—			248			7,671			(5,126		)	—			1,112			(4,014		)
Discontinued operations:
Operating results from discontinued operations	248			—			(248		)	—			1,112			—			(1,112		)	—
Impairment of assets of discontinued operations	—			—			—			—			(3,805		)	—			—			(3,805		)
Gains on sales of discontinued operations	160			—			—			160			947			—			—			947
Income (loss) from discontinued operations	408			—			(248		)	160			(1,746		)	—			(1,112		)	(2,858		)
Net income (loss)	7,831			—			—			7,831			(6,872		)	—			—			(6,872		)
Less: net (income) loss attributed to noncontrolling interest	(281		)	—			—			(281		)	273			—			—			273
Net income (loss) attributable to PREIT	7,550			—			—			7,550			(6,599		)	—			—			(6,599		)
Less: preferred share dividends	(3,962		)	—			—			(3,962		)	(3,768		)	—			—			(3,768		)
Net income (loss) attributable to PREIT common shareholders	$	3,588		$	—		$	—		$	3,588		$	(10,367	)	$	—		$	—		$	(10,367	)


⁽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 $255 and $151 for the quarters ended December 31, 2013 and 2012, respectively.

Pennsylvania Real Estate Investment Trust

Statement of Operations - Twelve Months Ended December 31, 2013 and December 31, 2012

Proportionate Consolidation Method

(in thousands)



	Twelve Months Ended December 31, 2013												Twelve Months Ended December 31, 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	$	283,074		$	27,319		$	7,861		$	318,254		$	272,036		$	26,261		$	25,706		$	324,003
Expense reimbursements	126,909			11,193			1,745			139,847			119,993			10,546			6,327			136,866
Percentage rent	5,732			216			26			5,974			5,713			229			108			6,050
Lease termination revenue	1,565			123			78			1,766			1,753			74			75			1,902
Other real estate revenue	14,448			1,344			304			16,096			14,318			1,342			830			16,490
Total real estate revenue	431,728			40,195			10,014			481,937			413,813			38,452			33,046			485,311
Other income	6,950			—			—			6,950			5,534			—			—			5,534
Total revenue	438,678			40,195			10,014			488,887			419,347			38,452			33,046			490,845
EXPENSES:
Operating expenses:
CAM and real estate taxes	(142,684		)	(8,791		)	(3,399		)	(154,874		)	(132,901		)	(8,132		)	(12,745		)	(153,778		)
Utilities	(22,028		)	(753		)	(288		)	(23,069		)	(21,838		)	(816		)	(566		)	(23,220		)
Other operating expenses	(17,567		)	(2,416		)	(601		)	(20,584		)	(18,391		)	(2,510		)	(2,029		)	(22,930		)
Total operating expenses	(182,279		)	(11,960		)	(4,288		)	(198,527		)	(173,130		)	(11,458		)	(15,340		)	(199,928		)
Depreciation and amortization	(140,880		)	(7,373		)	(1,161		)	(149,414		)	(127,845		)	(7,396		)	(8,877		)	(144,118		)
Other expenses:
General and administrative expenses	(36,975		)	—			—			(36,975		)	(37,538		)	—			—			(37,538		)
Provision for employee separation expense	(2,314		)	—			—			(2,314		)	(9,437		)	—			—			(9,437		)
Impairment of assets	(6,304		)	—			—			(6,304		)	—			—			—			—
Project costs and other expenses	(1,422		)	—			—			(1,422		)	(1,936		)	(2		)	—			(1,938		)
Total other expenses	(47,015		)	—			—			(47,015		)	(48,911		)	(2		)	—			(48,913		)
Interest expense, net⁽²⁾	(98,731		)	(11,084		)	(1,753		)	(111,568		)	(122,118		)	(11,258		)	(4,202		)	(137,578		)
Total expenses	(468,905		)	(30,417		)	(7,202		)	(506,524		)	(472,004		)	(30,114		)	(28,419		)	(530,537		)
Loss before equity in income of partnerships and discontinued operations	(30,227		)	9,778			2,812			(17,637		)	(52,657		)	8,338			4,627			(39,692		)
Equity in income of partnerships	9,778			(9,778		)	—			—			8,338			(8,338		)	—			—
Loss from continuing operations	(20,449		)	—			2,812			(17,637		)	(44,319		)	—			4,627			(39,692		)
Discontinued operations:
Operating results from discontinued operations	2,812			—			(2,812		)	—			4,627			—			(4,627		)	—
Impairment of assets of discontinued operations	(23,662		)	—			—			(23,662		)	(3,805		)	—			—			(3,805		)
Gains on sales of discontinued operations	78,512			—			—			78,512			947			—			—			947
Income from discontinued operations	57,662			—			(2,812		)	54,850			1,769			—			(4,627		)	(2,858		)
Net income (loss)	37,213			—			—			37,213			(42,550		)	—			—			(42,550		)
Less: net (income) loss attributed to noncontrolling interest	(1,354		)	—			—			(1,354		)	1,713			—			—			1,713
Net income (loss) attributable to PREIT	35,859			—			—			35,859			(40,837		)	—			—			(40,837		)
Less: preferred share dividends	(15,848		)	—			—			(15,848		)	(7,984		)	—			—			(7,984		)
Net income (loss) attributable to PREIT common shareholders	$	20,011		$	—		$	—		$	20,011		$	(48,821	)	$	—		$	—		$	(48,821	)


⁽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 $863 and $1,549 for the twelve months ended December 31, 2013 and 2012, respectively.

Pennsylvania Real Estate Investment Trust

Statement of Net Operating Income ⁽¹⁾

(in thousands)



	Quarter Ended December 31, 2013												Quarter Ended December 31, 2012
SAME STORE RETAIL/OTHER	Same			New			Other			Total			Same			New		Other			Total
Real estate revenue:
Base rent	$	80,802		$	1,425		$	675		$	82,902		$	79,649		$	—	$	7,005		$	86,654
Expense reimbursements	34,391			252			166			34,809			32,084			—		1,596			33,680
Percentage rent	3,701			—			—			3,701			3,758			—		82			3,840
Lease termination revenue	1,095			—			29			1,124			78			—		—			78
Other real estate revenue	6,362			1			184			6,547			6,305			—		413			6,718
TOTAL REAL ESTATE REVENUE	126,351			1,678			1,054			129,083			121,874			—		9,096			130,970
Operating expenses:
CAM and real estate taxes	(38,281		)	(306		)	(796		)	(39,383		)	(35,437		)	—		(3,664		)	(39,101		)
Utilities	(5,079		)	(170		)	(29		)	(5,278		)	(4,901		)	—		(93		)	(4,994		)
Other operating expenses	(5,981		)	(16		)	86			(5,911		)	(5,771		)	—		(582		)	(6,353		)
TOTAL OPERATING EXPENSES	(49,341		)	(492		)	(739		)	(50,572		)	(46,109		)	—		(4,339		)	(50,448		)
NET OPERATING INCOME	$	77,010		$	1,186		$	315		$	78,511		$	75,765		$	—	$	4,757		$	80,522

	2013			% change 2012 to 2013			2012
Same store NOI variance
Same store NOI ⁽²⁾	$	77,010		1.6%			$	75,765
Same store NOI excluding lease terminations	$	75,915		0.3%			$	75,687



	Twelve Months Ended December 31, 2013												Twelve Months Ended December 31, 2012
SAME STORE RETAIL/OTHER	Same			New			Other			Total			Same			New		Other			Total
Real estate revenue:
Base rent	$	305,229		$	3,976		$	9,049		$	318,254		$	296,867		$	—	$	27,136		$	324,003
Expense reimbursements	137,298			744			1,805			139,847			130,473			—		6,393			136,866
Percentage rent	5,949			—			25			5,974			5,942			—		108			6,050
Lease termination revenue	1,688			—			78			1,766			1,827			—		75			1,902
Other real estate revenue	15,309			3			784			16,096			15,171			—		1,319			16,490
TOTAL REAL ESTATE REVENUE	465,473			4,723			11,741			481,937			450,280			—		35,031			485,311
Operating expenses:
CAM and real estate taxes	(149,030		)	(848		)	(4,996		)	(154,874		)	(139,383		)	—		(14,395		)	(153,778		)
Utilities	(22,255		)	(526		)	(288		)	(23,069		)	(22,655		)	—		(565		)	(23,220		)
Other operating expenses	(19,856		)	(52		)	(676		)	(20,584		)	(20,813		)	—		(2,117		)	(22,930		)
TOTAL OPERATING EXPENSES	(191,141		)	(1,426		)	(5,960		)	(198,527		)	(182,851		)	—		(17,077		)	(199,928		)
NET OPERATING INCOME	$	274,332		$	3,297		$	5,781		$	283,410		$	267,429		$	—	$	17,954		$	285,383

	2013			% change 2012 to 2013			2012
Same store NOI variance
Same store NOI ⁽²⁾	$	274,332		2.6%			$	267,429
Same store NOI excluding lease terminations	$	272,644		2.7%			$	265,602


⁽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 December 31,						Twelve Months Ended December 31,
	2013			2012			2013			2012
Income (loss) from continuing operations	$	7,423		$	(5,126	)	$	(20,449	)	$	(44,319	)
Dividends on preferred shares	(3,962		)	(3,768		)	(15,848		)	(7,984		)
Noncontrolling interest	(225		)	198			729			1,778
Dividends on unvested restricted shares	(120		)	(119		)	(439		)	(442		)
Income (loss) from continuing operations used to calculate loss per share - basic and diluted	$	3,116		$	(8,815	)	$	(36,007	)	$	(50,967	)

Income (loss) from discontinued operations	$	408		$	(1,746	)	$	57,662		$	1,769
Noncontrolling interest	(56		)	75			(2,083		)	(65		)
Income (loss) from discontinued operations used to calculate earnings per share - basic and diluted	$	352		$	(1,671	)	$	55,579		$	1,704
Basic earnings (loss) per share
Income (loss) from continuing operations - basic	$	0.05		$	(0.16	)	$	(0.56	)	$	(0.92	)
Income (loss) from discontinued operations - basic	—			(0.03		)	0.87			0.03
	$	0.05		$	(0.19	)	$	0.31		$	(0.89	)
Diluted earnings (loss) per share
Income (loss) from continuing operations - diluted	$	0.05		$	(0.16	)	$	(0.56	)	$	(0.92	)
Income (loss) from discontinued operations - diluted	—			(0.03		)	0.87			0.03
	$	0.05		$	(0.19	)	$	0.31		$	(0.89	)

Weighted average common shares outstanding	68,216			55,988			64,265			55,867
Weighted average unvested restricted shares	(599		)	(741		)	(603		)	(745		)
Weighted average shares outstanding - basic	67,617			55,247			63,662			55,122
Weighted average effect of common share equivalents ⁽¹⁾	844			—			—			—
Total weighted average shares outstanding - diluted	68,461			55,247			63,662			55,122

⁽¹⁾

For the three months ended December 31, 2012 and twelve months ended December 31, 2013 and December 31, 2012, there are net losses allocable to common shareholders from continuing operations. Therefore, the effect of common share equivalents of 1,149 for the three months ended December 31, 2012, and 876 and 1,131 for the twelve months ended December 31, 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 December 31, 2013													Quarter Ended December 31, 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	$	117,937		$	10,512		$	634		$	129,083			$	112,462		$	9,946		$	8,562		$	130,970
Operating expenses	(47,081		)	(3,192		)	(299		)	(50,572		)		(43,464		)	(3,049		)	(3,935		)	(50,448		)
NET OPERATING INCOME	70,856			7,320			335			78,511				68,998			6,897			4,627			80,522
General and administrative expenses	(10,395		)	—			—			(10,395		)		(8,720		)	—			—			(8,720		)
Provision for employee separation expense	—			—			—			—				(3,683		)	—			—			(3,683		)
Other income	1,459			—			—			1,459				1,280			—			—			1,280
Project costs and other expenses	(561		)	—			—			(561		)		(1,159		)	—			—			(1,159		)
Interest expense, net	(20,227		)	(2,779		)	—			(23,006		)		(30,587		)	(2,809		)	(1,171		)	(34,567		)
Depreciation on non real estate assets	(332		)	—			—			(332		)		(220		)	—			—			(220		)
Dividends on preferred shares	(3,962		)	—			—			(3,962		)		(3,768		)	—			—			(3,768		)
FFO	36,838			4,541			335			41,714				22,141			4,088			3,456			29,685
Depreciation on real estate assets	(36,074		)	(1,844		)	(87		)	(38,005		)		(33,264		)	(1,859		)	(2,344		)	(37,467		)
Equity in income of partnerships	2,697			(2,697		)	—			—				2,229			(2,229		)	—			—
Operating results from discontinued operations	248			—			(248		)	—				1,112			—			(1,112		)	—
Impairment of assets	—			—			—			—				(3,805		)	—			—			(3,805		)
Gains on sales of discontinued operations	160			—			—			160				947			—			—			947
Preferred share dividends	3,962			—			—			3,962				3,768			—			—			3,768
Net income (loss)	$	7,831		$	—		$	—		$	7,831			$	(6,872	)	$	—		$	—		$	(6,872	)
FFO	$	36,838		$	4,541		$	335		$	41,714			$	22,141		$	4,088		$	3,456		$	29,685
Provision for employee separation expenses	—			—			—			—				3,683			—			—			3,683
Accelerated amortization of deferred financing costs	—			—			—			—				690			—			—			690
Loss on hedge ineffectiveness	—			—			—			—				1,162			—			—			1,162
FFO AS ADJUSTED	$	36,838		$	4,541		$	335		$	41,714			$	27,676		$	4,088		$	3,456		$	35,220
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	36,838		$	4,541		$	335		$	41,714			$	27,676		$	4,088		$	3,456		$	35,220
Adjustments:
Straight line rent	(392		)	(33		)	(1		)	(426		)		(996		)	4			54			(938		)
Recurring capital expenditures	(7,593		)	(374		)	—			(7,967		)		(6,364		)	(4		)	—			(6,368		)
Tenant allowances	(11,122		)	(317		)	—			(11,439		)		(11,134		)	(686		)	(557		)	(12,377		)
Capitalized leasing costs	(1,359		)	—			—			(1,359		)		(1,199		)	—						(1,199		)
Amortization of mortgage loan premium	—			—			—			—				—			—			—			—
Amortization of above- and below-market lease intangibles	(289		)	(21		)	(1		)	(311		)		(102		)	(30		)	(2		)	(134		)
FAD	$	16,083		$	3,796		$	333		$	20,212			$	7,881		$	3,372		$	2,951		$	14,204
Weighted average number of shares outstanding										67,617													55,247
Weighted average effect of full conversion of OP Units										2,129													2,301
Effect of common share equivalents										844													1,149
Total weighted average shares outstanding, including OP Units										70,590													58,697
FFO PER DILUTED SHARE AND OP UNIT										$	0.59												$	0.51
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED										$	0.59												$	0.60
FAD PER DILUTED SHARE AND OP UNIT										$	0.29												$	0.24
DIVIDEND PER COMMON SHARE										$	0.20												$	0.16
PAYOUT RATIOS
Payout ratio of FFO										39.0		%	⁽¹⁾										35.5		%	⁽²⁾
Payout ratio of FFO as adjusted										36.8		%	⁽¹⁾										33.7		%	⁽²⁾
Payout ratio of FAD										67.0		%	⁽¹⁾										59.8		%	⁽²⁾


⁽¹⁾	Twelve months ended December 31, 2013.


⁽²⁾	Twelve months ended December 31, 2012.

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)



	Twelve Months Ended December 31, 2013													Twelve Months Ended December 31, 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	$	431,728		$	40,195		$	10,014		$	481,937			$	413,813		$	38,452		$	33,046		$	485,311
Operating expenses	(182,279		)	(11,960		)	(4,288		)	(198,527		)		(173,130		)	(11,458		)	(15,340		)	(199,928		)
NET OPERATING INCOME	249,449			28,235			5,726			283,410				240,683			26,994			17,706			285,383
General and administrative expenses	(36,975		)	—			—			(36,975		)		(37,538		)	—			—			(37,538		)
Provision for employee separation expense	(2,314		)	—			—			(2,314		)		(9,437		)	—			—			(9,437		)
Other income	6,950			—			—			6,950				5,534			—			—			5,534
Project costs and other expenses	(1,422		)	—			—			(1,422		)		(1,936		)	(2		)	—			(1,938		)
Interest expense, net	(98,731		)	(11,084		)	(1,753		)	(111,568		)		(122,118		)	(11,258		)	(4,202		)	(137,578		)
Depreciation on non real estate assets	(1,132		)	—			—			(1,132		)		(825		)	—			—			(825		)
Dividends on preferred shares	(15,848		)	—			—			(15,848		)		(7,984		)	—			—			(7,984		)
FFO	99,977			17,151			3,973			121,101				66,379			15,734			13,504			95,617
Depreciation on real estate assets	(139,748		)	(7,373		)	(1,161		)	(148,282		)		(127,020		)	(7,396		)	(8,877		)	(143,293		)
Impairment of assets	(6,304		)	—			—			(6,304		)		—			—			—			—
Equity in income of partnerships	9,778			(9,778		)	—			—				8,338			(8,338		)	—			—
Operating results from discontinued operations	2,812			—			(2,812		)	—				4,627			—			(4,627		)	—
Impairment of assets of discontinued operations	(23,662		)	—			—			(23,662		)		(3,805		)	—			—			(3,805		)
Gains on sales of discontinued operations	78,512			—			—			78,512				947			—			—			947
Dividends on preferred shares	15,848			—			—			15,848				7,984			—			—			7,984
Net income (loss)	$	37,213		$	—		$	—		$	37,213			$	(42,550	)	$	—		$	—		$	(42,550	)
FFO	$	99,977		$	17,151		$	3,973		$	121,101			$	66,379		$	15,734		$	13,504		$	95,617
Provision for employee separation expenses	2,314			—			—			2,314				9,437			—			—			9,437
Loss on hedge ineffectiveness	3,409			—			—			3,409				1,162			—			—			1,162
Accelerated amortization of deferred financing costs	1,076			—			—			1,076				690			—			—			690
FFO AS ADJUSTED	$	106,776		$	17,151		$	3,973		$	127,900			$	77,668		$	15,734		$	13,504		$	106,906
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	106,776		$	17,151		$	3,973		$	127,900			$	77,668		$	15,734		$	13,504		$	106,906
Adjustments:
Straight line rent	(1,476		)	(146		)	51			(1,571		)		(2,387		)	63			153			(2,171		)
Recurring capital expenditures	(15,511		)	(855		)	(130		)	(16,496		)		(13,921		)	(298		)	(125		)	(14,344		)
Tenant allowances	(24,938		)	(518		)	—			(25,456		)		(27,173		)	(1,084		)	(1,111		)	(29,368		)
Capitalized leasing costs	(5,261		)	—			—			(5,261		)		(5,336		)	—			—			(5,336		)
Amortization of mortgage loan premium	—			—			—			—				(282		)	—			—			(282		)
Amortization of above- and below-market lease intangibles	(950		)	(94		)	(15		)	(1,059		)		(285		)	(124		)	(11		)	(420		)
Amortization of exchangeable notes debt discount	—			—			—			—				849			—			—			849
FAD	$	58,640		$	15,538		$	3,879		$	78,057			$	29,133		$	14,291		$	12,410		$	55,834
Weighted average number of shares outstanding										63,662													55,122
Weighted average effect of full conversion of OP Units										2,194													2,310
Effect of common share equivalents										876													1,131
Total weighted average shares outstanding, including OP Units										66,732													58,563
FFO PER DILUTED SHARE AND OP UNIT										$	1.81												$	1.63
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED										$	1.92												$	1.83
FAD PER DILUTED SHARE AND OP UNIT										$	1.17												$	0.95
DIVIDEND PER COMMON SHARE										$	0.74												$	0.63
PAYOUT RATIOS
Payout ratio of FFO										40.9		%	⁽¹⁾										38.7		%	⁽²⁾
Payout ratio of FFO as adjusted										38.5		%	⁽¹⁾										34.4		%	⁽²⁾
Payout ratio of FAD										63.2		%	⁽¹⁾										66.3		%	⁽²⁾


⁽¹⁾	Twelve months ended December 31, 2013.


⁽²⁾	Twelve months ended December 31, 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
4th Quarter ⁽⁶⁾	31	141,916	N/A		25.03		25.03			N/A		4.47
Total/Average	177	617,238	N/A		$	31.39	$	31.39		N/A		$	6.37

Renewal - non-anchor tenants 10k sf and under: ⁽⁷⁾
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	%	—
4th Quarter	89	224,112	35.73		36.03		0.30			0.8	%	0.15
Total/Average	332	875,071	$	35.03	$	36.53	$	1.50		4.3	%	$	0.05

Renewal - non-anchor tenants greater than 10k sf: ⁽⁷⁾
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	)%	—
4th Quarter	6	99,714	31.71		22.50		(9.21		)	(29.0	)%	2.00
Total/Average	11	179,143	$	23.33	$	18.26	$	(5.07	)	(21.7	)%	$	1.11

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
4th Quarter	3	305,613	3.09		3.32		0.23			7.4	%	—
Total/Average	16	1,430,887	$	4.26	$	4.35	$	0.09		2.1	%	$	0.05


⁽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⁾	Excluding tenants greater than 10k square feet, average gross rent per square foot for new leases was $34.83.


⁽⁷⁾	This category includes expansions and lease extensions.

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages



	December 31, 2013										December 31, 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	32.5	%	$526	$66.64	13.2	%	98.0	%	97.1	%	30.9	%	$530	$	63.65	12.4	%	97.5	%	96.3	%	(0.8	)%	4.7	%	0.8	%	0.5	%	0.8	%
Core Growth Malls	47.2	%	$356	$41.87	12.8	%	94.9	%	93.5	%	44.6	%	$356	$	41.43	12.6	%	93.9	%	91.5	%	—	%	1.1	%	0.2	%	1.0	%	2.0	%
Opportunistic Malls	11.2	%	$266	$26.61	11.3	%	93.6	%	90.3	%	11.1	%	$268	$	25.96	11.0	%	94.0	%	88.6	%	(0.7	)%	2.5	%	0.3	%	(0.4	)%	1.7	%
Non Core Malls	2.9	%	$246	$28.10	12.1	%	91.3	%	90.3	%	3.0	%	$250	$	26.40	11.4	%	91.5	%	90.8	%	(1.6	)%	6.4	%	0.7	%	(0.2	)%	(0.5	)%
Total Malls	93.8	%	$380	$44.52	12.7	%	95.0	%	93.5	%	89.6	%	$382	$	43.20	12.3	%	94.4	%	92.0	%	(0.5	)%	3.1	%	0.4	%	0.6	%	1.5	%
Strip and Power Centers	4.0	%	N/A	$18.24	N/A		95.0	%	93.2	%	4.0	%	N/A	$	18.25	N/A		94.5	%	92.5	%	N/A		(0.1	)%	N/A		0.5	%	0.7	%
Total Retail Properties	97.8	%	N/A	$40.16	N/A		95.0	%	93.5	%	93.5	%	N/A	$	39.13	N/A		94.4	%	92.0	%	N/A		2.6	%	N/A		0.6	%	1.5	%
Sold Properties⁽³⁾	2.0	%	N/A	N/A	N/A		N/A		N/A		6.2	%	N/A	$	22.58	N/A		91.4	%	82.5	%	N/A		N/A		N/A		N/A		N/A
Other Properties	0.2	%	N/A	N/A	N/A		N/A		N/A		0.3	%	N/A	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Total Portfolio	100.0	%		$40.16			95.0	%	93.5	%	100.0	%		$	37.46			94.1	%	91.1	%			7.2	%			0.9	%	2.4	%


⁽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 $17.42 per square foot as of December 31, 2013 and $17.26 per square foot as of December 31, 2012.


⁽³⁾	Includes Chambersburg Mall, 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



	December 31, 2013						December 31, 2012						Change
	Avg Comp Sales⁽¹⁾		Total Occ %		Non Anchor Occup. %		Avg Comp Sales⁽¹⁾		Total Occ %		Non Anchor Occup. %		Avg Comp Sales⁽¹⁾		Total Occ %		Non Anchor Occup. %
Premier Malls
Cherry Hill Mall	$	621	95.6	%	94.8	%	$	632	95.1	%	94.1	%	(1.7	)%	0.5	%	0.7	%
Lehigh Valley Mall	559		98.3	%	97.2	%	568		98.2	%	97.0	%	(1.6	)%	0.1	%	0.2	%
Woodland Mall	513		99.7	%	99.7	%	530		98.3	%	98.3	%	(3.2	)%	1.4	%	1.4	%
Jacksonville Mall	461		100.0	%	100.0	%	494		99.8	%	99.6	%	(6.7	)%	0.2	%	0.4	%
Dartmouth Mall	437		98.7	%	97.9	%	425		97.3	%	95.6	%	2.8	%	1.4	%	2.3	%
Willow Grove Park	435		97.6	%	95.2	%	409		97.7	%	95.2	%	6.4	%	(0.1	)%	—	%
Premier Malls Subtotal	$	526	98.0	%	97.1	%	$	530	97.5	%	96.3	%	(0.8	)%	0.5	%	0.8	%
Core Growth Malls
Springfield Mall	$	401	97.5	%	97.5	%	$	387	94.7	%	94.7	%	3.6	%	2.8	%	2.8	%
The Mall at Prince Georges	396		99.8	%	99.7	%	383		98.0	%	95.7	%	3.4	%	1.8	%	4.0	%
Patrick Henry Mall	392		96.5	%	94.9	%	389		97.8	%	95.8	%	0.8	%	(1.3	)%	(0.9	)%
Wyoming Valley Mall	381		97.5	%	92.8	%	383		97.6	%	93.2	%	(0.5	)%	(0.1	)%	(0.4	)%
Valley View Mall	379		98.3	%	97.7	%	382		96.9	%	95.8	%	(0.8	)%	1.4	%	1.9	%
Capital City Mall	379		98.2	%	96.9	%	371		96.9	%	94.6	%	2.2	%	1.3	%	2.3	%
Viewmont Mall	361		99.4	%	98.3	%	370		99.0	%	97.5	%	(2.4	)%	0.4	%	0.8	%
Valley Mall	360		97.7	%	96.0	%	372		95.1	%	91.5	%	(3.2	)%	2.6	%	4.5	%
Francis Scott Key Mall	357		99.5	%	99.1	%	344		97.1	%	95.3	%	3.8	%	2.4	%	3.8	%
The Gallery at Market East	356		77.3	%	79.4	%	342		72.6	%	82.7	%	4.1	%	4.7	%	(3.3	)%
Magnolia Mall	351		98.7	%	97.0	%	338		99.3	%	98.4	%	3.8	%	(0.6	)%	(1.4	)%
Crossroads Mall	344		97.5	%	94.5	%	360		96.1	%	91.7	%	(4.4	)%	1.4	%	2.8	%
Moorestown Mall	342		92.6	%	83.6	%	357		92.2	%	80.6	%	(4.2	)%	0.4	%	3.0	%
Plymouth Meeting Mall	329		94.2	%	91.1	%	321		90.1	%	84.9	%	2.5	%	4.1	%	6.2	%
Exton Square Mall	315		96.1	%	91.5	%	329		94.6	%	88.1	%	(4.3	)%	1.5	%	3.4	%
Logan Valley Mall	315		98.2	%	95.8	%	321		97.8	%	94.7	%	(1.9	)%	0.4	%	1.1	%
Cumberland Mall	309		95.3	%	92.2	%	320		94.3	%	90.5	%	(3.4	)%	1.0	%	1.7	%
Gadsden Mall	299		97.5	%	93.9	%	325		94.9	%	87.2	%	(8.0	)%	2.6	%	6.7	%
Core Growth Malls Subtotal	$	356	94.9	%	93.5	%	$	356	93.9	%	91.5	%	—	%	1.0	%	2.0	%
Opportunistic Malls
Palmer Park Mall	$	300	98.1	%	93.9	%	$	293	95.2	%	84.8	%	2.4	%	2.9	%	9.1	%
New River Valley Mall	275		86.1	%	97.2	%	273		98.8	%	97.8	%	0.7	%	(12.7	)%	(0.6	)%
Beaver Valley Mall	272		97.5	%	94.6	%	247		96.1	%	91.5	%	10.1	%	1.4	%	3.1	%
Wiregrass Commons Mall	270		92.0	%	88.4	%	292		91.4	%	87.4	%	(7.5	)%	0.6	%	1.0	%
Uniontown Mall	266		97.4	%	94.1	%	278		95.5	%	89.7	%	(4.3	)%	1.9	%	4.4	%
Washington Crown Center	259		91.6	%	84.4	%	252		93.9	%	88.7	%	2.8	%	(2.3	)%	(4.3	)%
Lycoming Mall	255		98.0	%	96.1	%	270		98.0	%	96.3	%	(5.6	)%	—	%	(0.2	)%
Voorhees Town Center	219		73.2	%	72.8	%	217		68.3	%	67.9	%	0.9	%	4.9	%	4.9	%
Opportunistic Malls Subtotal	$	266	93.6	%	90.3	%	$	268	94.0	%	88.6	%	(0.7	)%	(0.4	)%	1.7	%
Non Core Malls
North Hanover Mall	$	269	84.6	%	87.9	%	$	250	85.0	%	89.3	%	7.6	%	(0.4	)%	(1.4	)%
Nittany Mall	238		94.8	%	89.6	%	251		96.1	%	92.1	%	(5.2	)%	(1.3	)%	(2.5	)%
South Mall	236		95.0	%	92.3	%	247		93.9	%	90.7	%	(4.5	)%	1.1	%	1.6	%
Non Core Malls Subtotal	$	246	91.3	%	90.3	%	$	250	91.5	%	90.8	%	(1.6	)%	(0.2	)%	(0.5	)%
Same Store Malls weighted average	$	380	95.0	%	93.5	%	$	382	94.4	%	92.0	%	(0.5	)%	0.6	%	1.5	%
Sold Properties	N/A		N/A		N/A		$	227	88.7	%	75.5	%	N/A		N/A		N/A
Total Reported weighted average	$	380	95.0	%	93.5	%	$	372	93.9	%	90.8	%	2.3	%	1.1	%	2.7	%


⁽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



	December 31, 2013				December 31, 2012				Change
	Total		Non-Anchor		Total		Non-Anchor		Total		Non-Anchor
Metroplex Shopping Center	100.0	%	100.0	%	100.0	%	100.0	%	—	%	—	%
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	100.0	%	100.0	%	90.0	%	71.7	%	10.0	%	28.3	%
Whitehall Mall	92.7	%	85.2	%	93.1	%	85.7	%	(0.4	)%	(0.5	)%
Strip and Power Center Weighted Average	95.0	%	93.2	%	94.5	%	92.5	%	0.5	%	0.7	%

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants



Tenant ⁽¹⁾	Total Number of Locations	Percentage of Annualized Gross Rent⁽²⁾
Gap, Inc.	41	2.9	%
Limited Brands, Inc.	68	2.8	%
Foot Locker, Inc.	60	2.8	%
J.C. Penney Company, Inc.⁽³⁾	27	2.5	%
American Eagle Outfitters, Inc.	39	2.5	%
Sears Holding Corporation ⁽⁴⁾	26	2.0	%
Signet Jewelers Limited	37	1.5	%
Zale Corporation	64	1.4	%
Commonwealth of Pennsylvania	2	1.4	%
Luxottica Group S.p.A.	46	1.4	%
Ascena Retail Group, Inc.	43	1.3	%
Abercrombie & Fitch Co.	19	1.3	%
Genesco, Inc.	59	1.3	%
Macy's, Inc.	24	1.2	%
Aeropostale, Inc.	38	1.2	%
The Finish Line, Inc.	26	1.2	%
The Children's Place Retail Stores, Inc.	27	1.2	%
Shoe Show, Inc.	28	1.1	%
Dick's Sporting Goods, Inc.	9	1.1	%
Boscov's Department Store	8	1.1	%
Total Top 20 Tenants	691	33.2	%
Total Leases	2,906	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.


⁽³⁾	Includes a landlord owned store located at Exton Square Mall which the tenant has announced that it intends to close in 2014.


⁽⁴⁾	Includes a landlord owned store located at The Gallery at Market East which the tenant has announced that it intends to close in 2014.

Pennsylvania Real Estate Investment Trust

Lease Expirations as of December 31, 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
2013 and Prior	193	526,077	4.6	%	18,366	17,171	5.0	%	$	34.91
2014	487	1,438,726	12.5	%	45,279	43,400	12.6	%	31.47
2015	402	1,576,589	13.7	%	50,110	46,029	13.3	%	31.78
2016	392	1,563,326	13.6	%	53,597	48,609	14.1	%	34.28
2017	304	1,054,051	9.1	%	37,553	33,527	9.7	%	35.63
2018	261	1,233,311	10.7	%	40,038	36,261	10.5	%	32.46
2019	165	828,922	7.2	%	27,826	25,675	7.4	%	33.57
2020	129	806,010	7.0	%	23,815	22,293	6.4	%	29.55
2021	122	521,152	4.5	%	19,099	17,153	5.0	%	36.65
2022	130	645,852	5.6	%	21,591	19,210	5.5	%	33.43
2023	153	866,960	7.5	%	27,250	24,252	7.0	%	31.43
Thereafter	71	466,511	4.0	%	12,713	12,140	3.5	%	27.25
Total/Average	2,809	11,527,487	100.0	%	377,237	345,720	100.0	%	$	32.72



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	4	320,649	3.1	%	$	1,770	$	1,770	3.3	%	$	5.52
2015	12	1,210,881	11.7	%	6,137		6,137		11.6	%	5.07
2016	19	1,872,374	18.0	%	7,618		7,618		14.3	%	4.07
2017	10	1,400,890	13.5	%	4,589		4,207		7.9	%	3.28
2018	14	1,325,258	12.7	%	5,973		5,973		11.2	%	4.51
2019	16	1,774,333	17.1	%	6,533		6,035		11.4	%	3.68
2020	4	450,227	4.3	%	1,267		1,267		2.4	%	2.81
2021	4	481,791	4.6	%	5,532		4,182		7.9	%	11.48
2022	4	521,173	5.0	%	2,645		2,645		5.0	%	5.08
Thereafter	10	1,034,771	10.0	%	13,768		13,293		25.0	%	13.31
Total/Average	97	10,392,347	100.0	%	$	55,832	$	53,127	100.0	%	$	5.37


⁽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 507,441 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 December 31, 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	449	36	1,306
Dartmouth Mall	MA	100%	1997	1971/2000	—	—	100	108	—	—	—	208	140	—	—	—	—	—	140	142	173	6	669
Jacksonville Mall	NC	100%	2003	1981/2008	—	—	52	117	—	—	73	242	—	—	—	—	—	—	—	99	149	—	490
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	77	281	18	1,179
Woodland Mall	MI	100%	2005	1968/1998	—	—	—	—	—	—	—	—	157	255	313	—	—	—	725	167	277	1	1,170
Total Premier Malls					178	437	277	225	165	—	73	1,355	839	636	489	—	—	—	1,964	872	1,715	77	5,983
Core Growth Malls
Capital City Mall	PA	100%	2003	1974/2005	—	—	103	101	—	—	—	204	120	—	—	—	—	—	120	81	200	9	614
Crossroads Mall	WV	100%	2003	1981	—	—	90	87	—	—	78	255	—	—	—	—	—	—	—	74	128	12	469
Cumberland Mall	NJ	100%	2005	1973/2003	—	—	51	—	—	—	213	264	—	—	—	155	—	118	273	210	162	32	941
Exton Square Mall	PA	100%	2003	1973/2000	—	—	118	144	178	—	—	440	181	—	96	—	—	—	277	58	280	31	1,086
Francis Scott Key Mall	MD	100%	2003	1978/1991	—	—	101	121	—	—	—	222	139	—	—	—	—	—	139	141	215	3	720
Gadsden Mall	AL	100%	2005	1974/1990	—	—	88	112	—	—	101	301	—	—	—	—	—	—	—	96	97	12	506
The Gallery at Market East ⁽²⁾	PA	100%	2003	1977/1990	—	—	—	133	—	—	621	754	—	—	—	—	—	—	—	119	227	324	1,424
Logan Valley Mall	PA	100%	2003	1960/1997	—	150	146	159	—	—	—	455	—	—	—	—	—	—	—	59	254	14	782
Magnolia Mall	SC	100%	1997	1979/2007	—	—	104	91	—	—	148	343	—	—	—	—	—	—	—	99	170	8	620
Moorestown Mall	NJ	100%	2003	1963/2008	—	—	—	206	203	—	—	409	200	—	—	—	—	121	321	72	207	55	1,064
Patrick Henry Mall	VA	100%	2003	1988/2005	—	—	85	—	—	—	50	135	140	—	—	—	—	145	285	38	244	15	717
Plymouth Meeting Mall	PA	100%	2003	1966/2009	—	—	—	—	189	—	65	254	215	—	—	—	—	—	215	198	238	43	948
The Mall at Prince Georges	MD	100%	1998	1959/2004	—	196	149	—	—	—	135	480	—	—	—	—	—	—	—	155	282	1	918
Springfield Mall	PA	50%	2005	1974/1997	—	—	—	—	—	—	—	—	192	—	—	—	—	196	388	10	208	6	612
Valley Mall	MD	100%	2003	1974/1999	—	—	157	—	—	123	—	280	120	—	123	—	—	—	243	128	247	16	914
Valley View Mall	WI	100%	2003	1980/2001	—	—	96	—	—	—	—	96	100	—	113	—	42	—	255	74	174	6	605
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	191	23	910
Core Growth Malls					—	492	1,654	1,465	570	278	1,411	5,870	1,547	—	332	155	42	580	2,656	1,799	3,678	615	14,618

(continued on next page)

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 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
Beaver Valley Mall	PA	100%	2002	1970/1991	—	—	126	191	194	—	—	511	205	—	—	—	—	—	205	193	221	24	1,154
Lycoming Mall	PA	100%	2003	1978/2007	—	—	62	130	—	60	81	333	120	—	—	—	—	—	120	162	185	14	814
New River Valley Mall	VA	100%	2003	1988/2007	—	—	50	—	—	—	88	138	—	—	—	—	—	—	—	135	126	64	463
Palmer Park Mall	PA	100%	1972/2003	1972/1998	—	—	—	—	192	122	—	314	—	—	—	—	—	—	—	—	135	9	458
Uniontown Mall	PA	100%	2003	1972/1990	—	—	63	100	—	80	148	391	—	—	—	—	—	—	—	102	189	18	700
Voorhees Town Center	NJ	100%	2003	1970/2007	—	—	—	—	4	—	—	4	224	—	—	173	—	24	421	68	153	83	729
Washington Crown Center	PA	100%	2003	1969/1999	—	—	—	83	—	78	84	245	140	—	—	—	—	—	140	89	154	45	673
Wiregrass Commons Mall	AL	100%	2003	1986/2008	—	—	—	—	—	—	95	95	—	84	—	—	—	248	332	10	175	24	636
Opportunistic Malls					—	—	301	504	390	340	496	2,031	689	84	—	173	—	272	1,218	759	1,338	281	5,627
Non Core Malls
Nittany Mall	PA	100%	2003	1968/1990	—	—	63	98	—	61	—	222	95	—	—	—	—	—	95	13	181	22	533
North Hanover Mall	PA	100%	2003	1967/1999	—	—	99	104	—	—	51	254	—	—	—	—	—	—	—	21	108	72	455
South Mall	PA	100%	2003	1975/1992	—	—	—	—	—	102	38	140	—	—	—	—	—	—	—	149	97	20	406
Non Core Malls					—	—	162	202	—	163	89	616	95	—	—	—	—	—	95	183	386	114	1,394
Strip and Power Centers
Metroplex Shopping Center	PA	50%	1999	2001	—	—	—	—	—	—	67	67	—	—	—	—	—	301	301	354	56	—	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	—	—	—	—	—	—	98	98	—	—	—	—	—	146	146	21	22	—	287
Whitehall Mall	PA	50%	1964	1964/1998	—	—	—	213	—	—	82	295	—	—	—	—	—	—	—	196	47	42	580
Strip and Power Centers					—	—	—	213	—	—	307	520	—	—	—	—	—	894	894	1,109	194	95	2,812
Portfolio Totals					178	929	2,394	2,609	1,125	781	2,376	10,392	3,170	720	821	328	42	1,746	6,827	4,722	7,311	1,182	30,434


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


⁽²⁾	jcpenney announced it will close this landlord owned store at this property in 2014.


⁽³⁾	Includes K-Mart located at 907 Market Street, which was acquired in April 2013. Sears announced it will close this landlord owned store in 2014.

Pennsylvania Real Estate Investment Trust

Department Store Lease Expirations as of December 31, 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⁾⁽⁵⁾	—	—	2019	—	—	2020	—	—	(2)	—	2019, (2)	—
Francis Scott Key Mall	—	—	—	—	—	2016	—	—	(2)	—	2018	—
Gadsden Mall	2019	—	—	—	—	2028	—	—	—	—	2019	—
The Gallery at Market East ⁽⁶⁾	—	—	—	2032	—	—	—	—	—	—	2014	—
Logan Valley Mall	—	—	—	—	—	2017	—	—	2020	—	2016	—
Magnolia Mall	2016	—	—	—	—	2017	—	—	—	—	2017	—
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	—	—	—	2019	—	—	(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 December 31, 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
Beaver Valley Mall	—	—	2018	—	—	2017	—	—	(2)	—	2016	—
Lycoming Mall	—	2016	—	2019	—	2015	—	—	(2)	—	2018	—
New River Valley Mall	2020	—	—	—	—	2018	—	—	—	—	—	—
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
Nittany Mall	—	2018	—	—	—	2015	—	—	(2)	—	2015	—
North Hanover Mall	—	—	—	—	—	2027	—	—	—	—	2019	—
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	—	23	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⁾	jcpenney announced it will close this landlord owned store at this property in 2014.


⁽⁶⁾	Includes K-Mart located at 907 Market Street, which was acquired in April 2013. Sears announced it will close this landlord owned store in 2014.

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method ⁽¹⁾

(in thousands, except per share amounts)



	December 31, 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	$	3,450,317		$	218,167		$	3,668,484		$	3,395,681		$	216,939		$	3,612,620
Construction in progress	68,835			953			69,788			68,619			811			69,430
Land held for development	8,716			—			8,716			13,240			—			13,240
Total investments in real estate	3,527,868			219,120			3,746,988			3,477,540			217,750			3,695,290
Accumulated depreciation	(1,012,746		)	(86,289		)	(1,099,035		)	(907,928		)	(80,112		)	(988,040		)
Net investments in real estate	2,515,122			132,831			2,647,953			2,569,612			137,638			2,707,250
Investments in partnerships, at equity	15,963			(15,963		)	—			14,855			(14,855		)	—
Other assets:
Cash and cash equivalents	34,230			7,637			41,867			33,990			4,883			38,873
Rent and other receivables ⁽²⁾	46,439			1,783			48,222			38,473			1,824			40,297
Intangible assets, net	9,075			70			9,145			8,673			108			8,781
Deferred costs and other assets, net	97,752			15,889			113,641			97,399			15,585			112,984
Assets held for sale	—			—			—			114,622			—			114,622
Total assets	$	2,718,581		$	142,247		$	2,860,828		$	2,877,624		$	145,183		$	3,022,807
LIABILITIES AND EQUITY
Liabilities:
Mortgage loans	$	1,502,650		$	198,451		$	1,701,101		$	1,718,052		$	201,717		$	1,919,769
Term Loans	—			—			—			182,000			—			182,000
Revolving Facility	130,000			—			130,000			—			—			—
Tenants’ deposits and deferred rent	17,896			4,151			22,047			14,862			4,027			18,889
Distributions in excess of partnership investments	64,491			(64,491		)	—			64,874			(64,874		)	—
Fair value of derivative instruments	844			—			844			9,742			—			9,742
Liabilities related to assets held for sale	—			—			—			102,417			—			102,417
Other liabilities	76,248			4,136			80,384			72,448			4,313			76,761
Total liabilities	1,792,129			142,247			1,934,376			2,164,395			145,183			2,309,578
Equity:
Total equity	926,452			—			926,452			713,229			—			713,229
Total liabilities and equity	$	2,718,581		$	142,247		$	2,860,828		$	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 $28.9 million ($26.4 million consolidated, $2.5 million unconsolidated) as of December 31, 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)



	December 31, 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	$	72,133	$	—	$	27,238	$	44,895	$	70,831	$	—	$	24,292	$	46,539
Capital City Mall	98,304		—		30,772		67,532		96,517		1,041		27,761		69,797
Chambersburg Mall	—		—		—		—		38,432		—		9,890		28,542
Cherry Hill Mall	461,126		—		139,719		321,407		457,756		30		117,401		340,385
Crossroads Mall	47,658		192		12,959		34,891		45,719		264		11,192		34,791
Cumberland Mall	66,546		—		15,102		51,444		65,054		—		13,005		52,049
Dartmouth Mall	63,842		—		30,532		33,310		62,841		—		29,459		33,382
Exton Square Mall	154,918		1,007		37,154		118,771		150,680		129		33,389		117,420
Francis Scott Key Mall	81,449		400		25,159		56,690		79,417		92		22,075		57,434
Gadsden Mall	63,365		—		14,276		49,089		63,295		—		13,474		49,821
The Gallery at Market East	245,189		7,406		46,201		206,394		183,572		5,742		35,470		153,844
Jacksonville Mall	82,094		—		24,214		57,880		81,390		—		21,399		59,991
Logan Valley Mall	98,012		—		29,457		68,555		97,679		—		27,029		70,650
Lycoming Mall	78,665		—		23,791		54,874		78,099		—		21,033		57,066
Magnolia Mall	91,666		—		33,817		57,849		88,976		59		30,183		58,852
Moorestown Mall	114,883		3,216		33,446		84,653		93,454		2,943		30,495		65,902
New River Valley Mall	59,169		—		24,375		34,794		58,804		—		21,249		37,555
Nittany Mall	44,454		—		12,961		31,493		44,432		—		11,644		32,788
North Hanover Mall ⁽²⁾	22,852		—		6,747		16,105		29,973		14		6,305		23,682
Palmer Park Mall	34,866		—		14,320		20,546		34,536		—		13,562		20,974
Patrick Henry Mall	144,331		—		47,753		96,578		143,422		—		42,453		100,969
Plymouth Meeting Mall	167,174		2,080		46,953		122,301		165,178		76		39,975		125,279
The Mall at Prince Georges	103,462		—		42,357		61,105		102,213		—		39,603		62,610
South Mall	36,105		—		8,708		27,397		35,924		—		7,796		28,128
Uniontown Mall	43,037		—		14,285		28,752		42,173		—		12,652		29,521
Valley Mall	98,297		—		28,898		69,399		95,160		—		26,094		69,066
Valley View Mall	69,925		—		18,212		51,713		68,486		—		16,242		52,244
Viewmont Mall	92,644		—		26,362		66,282		91,851		—		23,268		68,583
Voorhees Town Center	79,888		302		22,989		57,201		91,495		1,447		22,568		70,374
Washington Crown Center	43,835		141		15,369		28,607		40,802		29		14,359		26,472
Willow Grove Park	232,099		—		65,183		166,916		230,195		5		57,502		172,698
Wiregrass Commons Mall	54,885		—		14,744		40,141		53,897		—		12,693		41,204
Woodland Mall	191,781		—		44,730		147,051		188,121		—		38,681		149,440
Wyoming Valley Mall	110,148		—		33,929		76,219		109,288		—		30,018		79,270
Total Consolidated Malls	3,448,802		14,744		1,012,712		2,450,834		3,379,662		11,871		904,211		2,487,322
Unconsolidated Malls
Lehigh Valley Mall	45,726		162		21,869		24,019		45,483		32		20,484		25,031
Springfield Mall	56,897		6		15,145		41,758		56,766		6		13,526		43,246
Total Unconsolidated Malls	102,623		168		37,014		65,777		102,249		38		34,010		68,277
TOTAL MALLS	$	3,551,425	$	14,912	$	1,049,726	$	2,516,611	$	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)



	December 31, 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 ⁽³⁾	1,515		—		34		1,481		3,578		—		24		3,554
Pitney Road Plaza ⁽⁴⁾	—		75		—		75		—		—		—		—
Total Consolidated Strip and Power Centers	1,515		75		34		1,556		16,019		—		3,717		12,302
Unconsolidated Strip and Power Centers
Metroplex Shopping Center	42,919		—		20,514		22,405		42,890		—		18,911		23,979
The Court at Oxford Valley	28,760		—		10,317		18,443		27,953		4		9,747		18,210
Red Rose Commons	13,617		1		5,009		8,609		13,617		1		4,652		8,966
Springfield Park	7,217		—		1,986		5,231		7,195		—		1,837		5,358
Whitehall Mall	16,791		—		9,528		7,263		16,785		7		9,243		7,549
Total Unconsolidated Strip and Power Centers	109,304		1		47,354		61,951		108,440		12		44,390		64,062
TOTAL STRIP AND POWER CENTERS	$	110,819	$	76	$	47,388	$	63,507	$	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	6,240		784		1,921		5,103		6,250		761		1,712		5,299
Total Unconsolidated Properties Under Development	6,240		784		1,921		5,103		6,250		761		1,712		5,299
Other Properties
Land held for development - consolidated ⁽⁵⁾	8,716		—		—		8,716		13,240		—		—		13,240
Total Other Properties	8,716		—		—		8,716		13,240		—		—		13,240
TOTAL DEVELOPMENT AND OTHER	$	14,956	$	54,800	$	1,921	$	67,835	$	19,490	$	57,509	$	1,712	$	75,287
TOTAL INVESTMENT IN REAL ESTATE	$	3,677,200	$	69,788	$	1,099,035	$	2,647,953	$	3,625,860	$	69,430	$	988,040	$	2,707,250
CONSOLIDATED PROPERTIES	$	3,459,033	$	68,835	$	1,012,746	$	2,515,122	$	3,408,921	$	68,619	$	907,928	$	2,569,612
UNCONSOLIDATED PROPERTIES	218,167		953		86,289		132,831		216,939		811		80,112		137,638
TOTAL INVESTMENT IN REAL ESTATE	$	3,677,200	$	69,788	$	1,099,035	$	2,647,953	$	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 $6.3 million recorded in the 3rd Quarter of 2013.


⁽³⁾	Consists of two parcels remaining after sale of the property in 2010.


⁽⁴⁾	Consists of one parcel remaining after sale of the property in 2011.


⁽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 December 31, 2013									Twelve Months Ended December 31, 2013
	Consolidated		Unconsolidated			Discontinued Operations		Total		Consolidated		Unconsolidated			Discontinued Operations		Total
Redevelopment projects with incremental GLA and/or anchor replacement ⁽¹⁾	$	11,209	$	(155	)	$	—	$	11,054	$	39,852	$	292		$	—	$	40,144
New development projects	108		5			—		113		108		12			—		120
Tenant allowances	11,122		317			—		11,439		24,938		518			—		25,456
Recurring capital expenditures:
CAM expenditures	5,910		446			—		6,356		12,214		927			55		13,196
Non-CAM expenditures	1,683		(72		)	—		1,611		3,297		(72		)	75		3,300
Total recurring capital expenditures	7,593		374			—		7,967		15,511		855			130		16,496
Total	$	30,032	$	541		$	—	$	30,573	$	80,409	$	1,677		$	130	$	82,216


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

Pennsylvania Real Estate Investment Trust

Debt Analysis as of December 31, 2013

(in thousands)



	Outstanding Debt
	Fixed Rate⁽¹⁾			% of Total Indebtedness		Variable Rate			% of Total Indebtedness		Total			% of Total Indebtedness
Consolidated mortgage loans payable	$	1,450,460		79.2	%	$	52,190		2.9	%	$	1,502,650		82.1	%
Unconsolidated mortgage loans payable	194,820			10.6	%	3,631			0.2	%	198,451			10.8	%
2013 Credit Facility	—			—	%	130,000			7.1	%	130,000			7.1	%
TOTAL OUTSTANDING DEBT	$	1,645,280		89.8	%	$	185,821		10.2	%	$	1,831,101		100.0	%
AVERAGE STATED INTEREST RATE	4.94		%			2.00		%			4.64		%


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



		Average Debt Balance
		Mortgage Debt			2013 Revolving Facility		TOTAL
Beginning Balance	9/30/2013	$	1,737,387		$	90,000	$	1,827,387
Mortgage loan amortization		(5,111		)	—		(5,111		)
Exton Square Mall mortgage loan repayment		(66,932		)	—		(66,932		)
Beaver Valley Mall mortgage loan repayment		(42,243		)	—		(42,243		)
Wyoming Valley Mall mortgage loan financing		78,000			—		78,000
2013 Revolving Facility, net		—			40,000		40,000
Ending Balance	12/31/2013	$	1,701,101		$	130,000	$	1,831,101
Weighted Average Balance		$	1,682,428		$	149,130	$	1,831,559



	Debt Maturities⁽¹⁾
Year	Scheduled Amortization		Mortgage Balance at Maturity		2013 Revolving Facility		Total Debt
2014	$	20,867	$	51,000	$	—	$	71,867
2015	25,651		306,020		—		331,671
2016	16,325		243,745		130,000		390,070
2017	15,546		153,283		—		168,829
2018	15,259		145,678		—		160,937
2019	15,601		28,050		—		43,651
Thereafter	40,824		623,252		—		664,076
	$	150,073	$	1,551,028	$	130,000	$	1,831,101


⁽¹⁾	The weighted average period to mortgage maturity is 5.50 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.



Weighted Average Mortgage Interest Rates
Year	Balance		Interest Rate
2014	$	51,000	2.28	%
2015	320,253		5.69	%
2016	255,102		5.30	%
2017	153,631		5.45	%
2018	150,790		3.83	%
Thereafter	770,325		4.60	%
Total	$	1,701,101	4.85	%

Pennsylvania Real Estate Investment Trust

Debt Schedule as of December 31, 2013

(in thousands)



	Debt ⁽¹⁾		Interest Rate		Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Mortgage Loans
Springfield East ⁽²⁾	$	2,129	5.39	%	$	92	$	2,061	Mar 2015	Mar 2020
Springfield Park ⁽²⁾	2,500		5.39	%	108		2,419		Mar 2015	Mar 2020
Magnolia Mall	57,043		5.33	%	4,413		54,965		July 2015	July 2015
Patrick Henry Mall	87,288		6.34	%	7,743		83,210		Oct 2015	Oct 2015
Springfield Mall ⁽²⁾	31,895		4.77	%	2,118		30,740		Nov 2015	Nov 2015
Willow Grove Park	139,398		5.65	%	11,083		132,624		Dec 2015	Dec 2015
Valley Mall	82,502		5.49	%	5,014		78,996		Mar 2016	Mar 2016
Woodland Mall	146,410		5.58	%	10,760		140,484		Apr 2016	Apr 2016
801 Market Street ⁽²⁾	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 ⁽²⁾	62,625		3.71	%	2,321		62,625		Mar 2018	Mar 2018
Viewmont Mall ⁽²⁾	48,000		3.72	%	1,786		48,000		Mar 2018	Mar 2018
Lycoming Mall ⁽²⁾	34,857		3.72	%	3,001		30,907		Mar 2018	Mar 2018
Whitehall Mall	5,308		7.00	%	574		4,145		Nov 2018	Nov 2018
New River Valley Mall ⁽²⁾⁽³⁾	28,050		4.38	%	1,229		28,050		Jan 2019	Jan 2019
Valley View Mall	30,617		5.95	%	2,290		27,161		July 2020	July 2020
Lehigh Valley Mall	66,771		5.88	%	4,972		58,519		July 2020	July 2020
Red Rose Commons	14,442		5.14	%	978		12,379		July 2021	July 2021
The Court at Oxford Valley	29,465		5.56	%	1,668		25,782		July 2021	July 2021
Capital City Mall	64,137		5.30	%	4,379		54,715		Mar 2022	Mar 2022
Cumberland Mall	50,381		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	66,152		3.97	%	3,825		53,300		Apr 2023	Apr 2023
Metroplex Shopping Center	42,310		5.00	%	2,681		33,979		Oct 2023	Oct 2023
Wyoming Valley Mall	78,000		5.17	%	4,034		66,694		Dec 2023	Dec 2023
Total Fixed Rate Mortgage Loans	1,645,280		4.94	%	100,025		1,496,745
Variable Rate Mortgage Loans
Logan Valley Mall	$	51,000	2.28	%	$	1,164	$	51,000	Sept 2014	Sept 2015
801 Market Street	1,190		2.27	%	—		—		July 2016	July 2018
Pavilion East Associates	3,631		2.93	%	253		3,283		Aug 2017	Aug 2017
Total Variable Rate Mortgage Loans	55,821		2.32	%	1,417		54,283
Total Mortgage Loans	$	1,701,101	4.85	%	$	101,442	$	1,551,028
CONSOLIDATED MORTGAGE LOANS	$	1,502,650	4.78	%	$	87,998	$	1,377,721
UNCONSOLIDATED MORTGAGE LOANS	198,451		5.38	%	13,444		173,307
2013 REVOLVING FACILITY ⁽⁴⁾	130,000		1.87	%	2,426		130,000		Apr 2016	Apr 2018
Total	$	1,831,101	4.64	%	$	103,868	$	1,681,028
AMORTIZATION OF DEFERRED FINANCING FEES	—		0.18	%	—		—
EFFECTIVE INTEREST RATE	$	1,831,101	4.82	%	$	103,868	$	1,681,028


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


⁽²⁾	All or a portion of the mortgage loan has been effectively swapped to the fixed interest rate presented.


⁽³⁾	Payments are of interest only until 2017, then principal and interest at a rate to be determined.


⁽⁴⁾	In January 2014, the Company repaid the $130.0 million outstanding on the 2013 Revolving Facility, using funds from the 2014 unsecured Term Loans entered into in January 2014.

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios ⁽¹⁾




	December 31, 2013
Consolidated Liabilities to Gross Asset Value	48.36	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 60%
Secured Indebtedness to Gross Asset Value	42.83	%
Secured indebtedness to Gross Asset Value may not exceed 60%
Adjusted EBITDA to Fixed Charges	1.85
Adjusted EBITDA may not be less than 1.45 to 1.00
Unencumbered Adjusted NOI to Unsecured Interest Expense	14.39
Unencumbered Adjusted NOI to Unsecured Interest Expense may not be less than 1.75 to 1.00
Unencumbered Debt Yield	57.81	%
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 and the 2014 Term Loan agreements dated as of January 8, 2014 contain identical 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 set forth in the covenants under the 2013 Revolving Facility and 2014 Term Loans 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 twelve months ended months ended December 31, 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.

Pennsylvania Real Estate Investment Trust

Forward Looking Statements

This Quarterly Supplemental and Operating Information contains certain “forward-looking statements” within the meaning of the federal securities laws. 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 our current views about future events, achievements or results 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, our business might be materially and adversely affected by uncertainties affecting real estate businesses generally as well as the following, among other factors:


•	our substantial debt and stated value of preferred shares and our high leverage ratio;


•	constraining leverage, interest and tangible net worth covenants under our 2013 Revolving Facility and our 2014 Term Loans;


•	potential losses on impairment of certain long-lived assets, such as real estate, or of intangible assets, such as goodwill or potential losses on impairment of assets that we might be required to record in connection with any dispositions of assets;


•	changes to our corporate management team and any resulting modifications to our business strategies;


•	our ability to refinance our existing indebtedness when it matures, on favorable terms or at all;


•	our 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;


•	our ability to identify and execute on suitable acquisition opportunities and to integrate acquired properties into our portfolio;


•	our 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;


•	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;


•	risks related to development and redevelopment activities;


•	inability to sell properties that we seek to dispose of and inability to obtain estimated sale prices;


•	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;


•	acts of violence at malls, including our properties, or other similar spaces, and the potential effect on traffic and sales;


•	increases in operating costs that cannot be passed on to tenants;


•	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;

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