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

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8-K - 8-K - PENNSYLVANIA REAL ESTATE INVESTMENT TRUST	q414supplemental8k.htm

Exhibit 99.1

Supplemental Financial and Operating Information

Quarter Ended December 31, 2014

www.preit.com

NYSE: PEI

NYSE: PEIPRA, PEIPRB

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

December 31, 2014



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, 2014 and December 31, 2013	3
Statement of Operations - Proportionate Consolidation Method - Years Ended December 31, 2014 and December 31, 2013	4
Statement of Net Operating Income - Quarters and Years Ended December 31, 2014 and December 31, 2013	5
Computation of Earnings Per Share	6
Funds From Operations and Funds Available For Distribution - Quarters Ended December 31, 2014 and December 31, 2013	7
Funds From Operations and Funds Available For Distribution - Years Ended December 31, 2014 and December 31, 2013	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
Top Twenty Tenants	12
Lease Expirations	13
Property Information	14
Department Store Lease Expirations	16
Balance Sheet
Condensed Balance Sheet - Proportionate Consolidation Method	18
Investment in Real Estate	19
Capital Expenditures	21
Debt Analysis	22
Debt Schedule	23
Selected Debt Ratios	24
Definitions	25
Forward Looking Statements	26

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, 2014, the Company owned interests in 42 retail properties, 38 of which are operating retail properties and four are development properties. The 38 operating retail properties have a total of 28.6 million square feet and include 32 enclosed malls and six other retail properties. 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
	Christy McElroy	(212) 816-6981

Discern	David Wiggington	(646) 863-4177

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

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

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,
	2014			2013			2014			2013			2012
TRADING INFORMATION
Common Shares
High Price per share	$	24.35		$	19.58		$	24.35		$	22.54		$	17.90
Low Price per share	$	18.90		$	16.61		$	16.35		$	14.20		$	10.49
Closing Share Price (at the end of period)	$	23.46		$	18.98		$	23.46		$	18.98		$	17.64
Series A Preferred Shares
High Price per share	$	27.24		$	25.89		$	27.24		$	28.06		$	27.33
Low Price per share	$	25.80		$	24.77		$	25.04		$	24.77		$	24.95
Closing Share Price (at the end of period)	$	26.24		$	25.16		$	26.24		$	25.16		$	26.28
Series B Preferred Shares
High Price per share	$	26.08		$	24.64		$	26.41		$	26.86		$	25.54
Low Price per share	$	25.03		$	23.05		$	23.53		$	23.05		$	24.51
Closing Share Price (at the end of period)	$	25.89		$	23.73		$	25.89		$	23.73		$	25.27
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding	68,801			68,293			68,801			68,293			56,331
OP Units Outstanding	2,122			2,129			2,122			2,129			2,301
Total Common Shares and OP Units Outstanding	70,923			70,422			70,923			70,422			58,632
Equity Market Capitalization—Common Shares and OP Units	$	1,663,848		$	1,336,614		$	1,663,848		$	1,336,614		$	1,034,273
Series A Preferred Shares, Nominal Value	115,000			115,000			115,000			115,000			115,000
Series B Preferred Shares, Nominal Value	86,250			86,250			86,250			86,250			86,250
Total Equity Market Capitalization	$	1,865,098		$	1,537,864		$	1,865,098		$	1,537,864		$	1,235,523
DEBT CAPITALIZATION
Secured Debt Balance ⁽¹⁾	$	1,598,257		$	1,701,101		$	1,598,257		$	1,701,101		$	2,101,769
Unsecured Debt Balance ⁽²⁾⁽³⁾	130,000			130,000			130,000			130,000			—
Debt Capitalization	1,728,257			1,831,101			1,728,257			1,831,101			2,101,769
TOTAL MARKET CAPITALIZATION	$	3,593,355		$	3,368,965		$	3,593,355		$	3,368,965		$	3,337,292
Equity Capitalization/Total Market Capitalization	51.9		%	45.6		%	51.9		%	45.6		%	37.0		%
Debt Capitalization/Total Market Capitalization	48.1		%	54.4		%	48.1		%	54.4		%	63.0		%
Unsecured Debt Balance/Total Debt	7.5		%	7.1		%	7.5		%	7.1		%	—		%
DISTRIBUTIONS PER COMMON SHARE
Ordinary Dividends	$	0.03		$	—		$	0.11		$	—		$	—
Non-Dividend Distributions	0.17			0.20			0.69			0.74			0.63
Distributions per common share	$	0.20		$	0.20		$	0.80		$	0.74		$	0.63
Annualized Dividend Yield ⁽⁴⁾	3.4		%	4.2		%	3.4		%	3.9		%	3.6		%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	47,721		$	41,867		$	47,721		$	41,867		$	38,873
Revolving Facility	400,000			400,000			400,000			400,000			250,000
Amount Outstanding	—			(130,000		)	—			(130,000		)	—
Letter of Credit	(7,135		)	—			(7,135		)	—			—
Available Revolving Facility ⁽⁵⁾	392,865			270,000			392,865			270,000			250,000
Term Loans	250,000			—			250,000			—			182,000
Amount Borrowed	(130,000		)	—			(130,000		)	—			(182,000		)
Available Term Loans ⁽⁵⁾	$	120,000		$	—		$	120,000		$	—		$	—
TOTAL	$	560,586		$	311,867		$	560,586		$	311,867		$	288,873
Shelf Registration	$	1,000,000		$	568,750		$	1,000,000		$	568,750		$	798,750


⁽¹⁾	The secured debt balance includes $182,000 in Term Loans outstanding as of December 31, 2012.


⁽²⁾	The unsecured debt balance includes a Revolving Facility balance of $130,000 as of December 31, 2013.


⁽³⁾	The unsecured debt balance includes a Term Loan balance of $130,000 as of December 31, 2014.


⁽⁴⁾	Based on the closing price at the end of the period.

⁽⁵⁾

The available Credit Facility borrowings are subject to covenants that may restrict amounts that can be borrowed. Following recent property sales, the NOI from the Company’s remaining unencumbered properties is at a level such that the maximum unsecured amount that the Company may currently borrow within the Unencumbered Debt Yield covenant, including under the $400.0 million 2013 Revolving Facility and the $250.0 million aggregate 2014 Term Loans, is an aggregate of $561.1 million.

Pennsylvania Real Estate Investment Trust

Statement of Operations - Quarters Ended December 31, 2014 and December 31, 2013

Proportionate Consolidation Method

(in thousands)



	Quarter Ended December 31, 2014									Quarter Ended December 31, 2013
										Continuing Operations
	GAAP			PREIT’s share of unconsolidated partnerships⁽¹⁾			Total			GAAP			PREIT’s share of unconsolidated partnerships ⁽¹⁾			Discontinued operations			Total
REVENUE:
Base rent	$	69,000		$	9,464		$	78,464		$	75,514		$	6,983		$	405		$	82,902
Expense reimbursements	30,638			3,891			34,529			31,842			2,832			135			34,809
Percentage rent	3,669			223			3,892			3,574			127			—			3,701
Lease termination revenue	1,352			25			1,377			998			96			30			1,124
Other real estate revenue	5,395			542			5,937			6,009			474			64			6,547
Total real estate revenue	110,054			14,145			124,199			117,937			10,512			634			129,083
Other income	1,301			—			1,301			1,459			—			—			1,459
Total revenue	111,355			14,145			125,500			119,396			10,512			634			130,542
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes	(32,939		)	(3,749		)	(36,688		)	(36,727		)	(2,273		)	(384		)	(39,384		)
Utilities	(4,422		)	(444		)	(4,866		)	(5,043		)	(207		)	(27		)	(5,277		)
Other operating expenses	(4,059		)	(926		)	(4,985		)	(5,311		)	(712		)	112			(5,911		)
Total property operating expenses	(41,420		)	(5,119		)	(46,539		)	(47,081		)	(3,192		)	(299		)	(50,572		)
Depreciation and amortization	(36,694		)	(3,782		)	(40,476		)	(36,406		)	(1,844		)	(87		)	(38,337		)
General and administrative expenses	(9,294		)	—			(9,294		)	(10,395		)	—			—			(10,395		)
Acquisition costs and other expenses	(1,607		)	(377		)	(1,984		)	(561		)	—			—			(561		)
Total operating expenses	(89,015		)	(9,278		)	(98,293		)	(94,443		)	(5,036		)	(386		)	(99,865		)
Interest expense, net ⁽²⁾	(20,373		)	(2,691		)	(23,064		)	(20,227		)	(2,779		)				(23,006		)
Total expenses	(109,388		)	(11,969		)	(121,357		)	(114,670		)	(7,815		)	(386		)	(122,871		)
Income before equity in income of partnerships, gains on sales of real estate and discontinued operations	1,967			2,176			4,143			4,726			2,697			248			7,671
Equity in income of partnerships	2,176			(2,176		)	—			2,697			(2,697		)	—			—
Gains on sales of real estate	13,113			—			13,113			—			—			—			—
Gains on sales of non-operating real estate	1,774			—			1,774			—			—			—			—
Income from continuing operations	19,030			—			19,030			7,423			—			248			7,671
Discontinued operations:
Operating results from discontinued operations	—			—			—			248			—			(248		)	—
Gains on sales of discontinued operations	—			—			—			160			—			—			160
Income from discontinued operations	—			—			—			408			—			(248		)	160
Net income	19,030			—			19,030			7,831			—			—			7,831
Less: net income attributed to noncontrolling interest	(572		)	—			(572		)	(281		)	—			—			(281		)
Net income attributable to PREIT	18,458			—			18,458			7,550			—			—			7,550
Less: preferred share dividends	(3,962		)	—			(3,962		)	(3,962		)	—			—			(3,962		)
Net income attributable to PREIT common shareholders	$	14,496		$	—		$	14,496		$	3,588		$	—		$	—		$	3,588


⁽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 $110 and $255 for the quarters ended December 31, 2014 and 2013, respectively.

Pennsylvania Real Estate Investment Trust

Statement of Operations - Years Ended December 31, 2014 and December 31, 2013

Proportionate Consolidation Method

(in thousands)



	Year Ended December 31, 2014									Year Ended December 31, 2013
										Continuing Operations
	GAAP			PREIT’s share of unconsolidated partnerships⁽¹⁾			Total			GAAP			PREIT’s share of unconsolidated partnerships ⁽¹⁾			Discontinued operations			Total
REVENUE:
Base rent	$	278,896		$	32,015		$	310,911		$	283,074		$	27,319		$	7,861		$	318,254
Expense reimbursements	126,925			13,678			140,603			126,909			11,193			1,745			139,847
Percentage rent	5,124			302			5,426			5,732			216			26			5,974
Lease termination revenue	2,250			37			2,287			1,565			123			78			1,766
Other real estate revenue	13,401			1,472			14,873			14,448			1,344			304			16,096
Total real estate revenue	426,596			47,504			474,100			431,728			40,195			10,014			481,937
Other income	6,107			—			6,107			6,950			—			—			6,950
Total revenue	432,703			47,504			480,207			438,678			40,195			10,014			488,887
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes	(140,662		)	(11,660		)	(152,322		)	(142,684		)	(8,791		)	(3,399		)	(154,874		)
Utilities	(23,993		)	(1,251		)	(25,244		)	(22,028		)	(753		)	(288		)	(23,069		)
Other operating expenses	(15,772		)	(2,904		)	(18,676		)	(17,567		)	(2,416		)	(601		)	(20,584		)
Total property operating expenses	(180,427		)	(15,815		)	(196,242		)	(182,279		)	(11,960		)	(4,288		)	(198,527		)
Depreciation and amortization	(144,304		)	(9,850		)	(154,154		)	(140,880		)	(7,373		)	(1,161		)	(149,414		)
General and administrative expenses	(35,518		)	—			(35,518		)	(36,975		)	—			—			(36,975		)
Provision for employee separation expense	(4,961		)	—			(4,961		)	(2,314		)	—			—			(2,314		)
Acquisition costs and other expenses	(4,937		)	(397		)	(5,334		)	(1,422		)	—			—			(1,422		)
Total operating expenses	(370,147		)	(26,062		)	(396,209		)	(363,870		)	(19,333		)	(5,449		)	(388,652		)
Interest expense, net ⁽²⁾	(82,165		)	(10,873		)	(93,038		)	(98,731		)	(11,084		)	(1,753		)	(111,568		)
Impairment of assets	(19,695		)	—			(19,695		)	(6,304		)	—			—			(6,304		)
Total expenses	(472,007		)	(36,935		)	(508,942		)	(468,905		)	(30,417		)	(7,202		)	(506,524		)
Loss before equity in income of partnerships, gains on sales of real estate and discontinued operations	(39,304		)	10,569			(28,735		)	(30,227		)	9,778			2,812			(17,637		)
Equity in income of partnerships	10,569			(10,569		)	—			9,778			(9,778		)	—			—
Gains on sales of real estate	12,699			—			12,699			—			—			—			—
Gains on sales of non-operating real estate	1,774			—			1,774			—			—			—			—
Loss from continuing operations	(14,262		)	—			(14,262		)	(20,449		)	—			2,812			(17,637		)
Discontinued operations:
Operating results from discontinued operations	—			—			—			2,812			—			(2,812		)	—
Impairment of assets of discontinued operations	—			—			—			(23,662		)	—			—			(23,662		)
Gains on sales of discontinued operations	—			—			—			78,512			—			—			78,512
Income from discontinued operations	—			—			—			57,662			—			(2,812		)	54,850
Net (loss) income	(14,262		)	—			(14,262		)	37,213			—			—			37,213
Less: net loss (income) attributed to noncontrolling interest	432			—			432			(1,354		)	—			—			(1,354		)
Net (loss) income attributable to PREIT	(13,830		)	—			(13,830		)	35,859			—			—			35,859
Less: preferred share dividends	(15,848		)	—			(15,848		)	(15,848		)	—			—			(15,848		)
Net (loss) income attributable to PREIT common shareholders	$	(29,678	)	$	—		$	(29,678	)	$	20,011		$	—		$	—		$	20,011


⁽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 $604 and $863 for the twelve months ended December 31, 2014 and 2013, respectively.

Pennsylvania Real Estate Investment Trust

Statement of Net Operating Income ⁽¹⁾

(in thousands)



	Quarter Ended December 31, 2014									Quarter Ended December 31, 2013
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	74,617		$	3,847		$	78,464		$	72,861		$	10,041		$	82,902
Expense reimbursements	33,346			1,183			34,529			31,516			3,293			34,809
Percentage rent	3,818			74			3,892			3,547			154			3,701
Lease termination revenue	1,346			31			1,377			1,095			29			1,124
Other real estate revenue	5,739			198			5,937			5,698			849			6,547
TOTAL REAL ESTATE REVENUE	118,866			5,333			124,199			114,717			14,366			129,083
Property operating expenses:
CAM and real estate taxes	(34,294		)	(2,394		)	(36,688		)	(33,844		)	(5,540		)	(39,384		)
Utilities	(4,586		)	(280		)	(4,866		)	(4,554		)	(723		)	(5,277		)
Other operating expenses	(4,566		)	(419		)	(4,985		)	(5,033		)	(878		)	(5,911		)
TOTAL PROPERTY OPERATING EXPENSES	(43,446		)	(3,093		)	(46,539		)	(43,431		)	(7,141		)	(50,572		)
NET OPERATING INCOME	$	75,420		$	2,240		$	77,660		$	71,286		$	7,225		$	78,511

	2014			% change 2013 to 2014			2013
Same store NOI variance
Same store NOI ⁽²⁾	$	75,420		5.8		%	$	71,286
Same store NOI excluding lease terminations	$	74,074		5.5		%	$	70,191



	Year Ended December 31, 2014									Year Ended December 31, 2013
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	281,889		$	29,022		$	310,911		$	273,847		$	44,407		$	318,254
Expense reimbursements	130,869			9,734			140,603			125,273			14,574			139,847
Percentage rent	5,307			119			5,426			5,718			256			5,974
Lease termination revenue	1,864			423			2,287			1,609			157			1,766
Other real estate revenue	13,155			1,718			14,873			13,408			2,688			16,096
TOTAL REAL ESTATE REVENUE	433,084			41,016			474,100			419,855			62,082			481,937
Property operating expenses:
CAM and real estate taxes	(135,419		)	(16,903		)	(152,322		)	(131,047		)	(23,827		)	(154,874		)
Utilities	(22,668		)	(2,576		)	(25,244		)	(20,077		)	(2,992		)	(23,069		)
Other operating expenses	(15,212		)	(3,464		)	(18,676		)	(16,753		)	(3,831		)	(20,584		)
TOTAL PROPERTY OPERATING EXPENSES	(173,299		)	(22,943		)	(196,242		)	(167,877		)	(30,650		)	(198,527		)
NET OPERATING INCOME	$	259,785		$	18,073		$	277,858		$	251,978		$	31,432		$	283,410

	2014			% change 2013 to 2014			2013
Same store NOI variance
Same store NOI ⁽²⁾	$	259,785		3.1		%	$	251,978
Same store NOI excluding lease terminations	$	257,921		3.0		%	$	250,369


⁽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 25.

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share

(in thousands, except per share amounts)



	Quarter Ended December 31,						Year Ended December 31,
	2014			2013			2014			2013
Income (loss) from continuing operations	$	19,030		$	7,423		$	(14,262	)	$	(20,449	)
Dividends on preferred shares	(3,962		)	(3,962		)	(15,848		)	(15,848		)
Noncontrolling interest	(572		)	(225		)	432			729
Dividends on unvested restricted shares	(88		)	(119		)	(380		)	(439		)
Income (loss) from continuing operations used to calculate loss per share - basic and diluted	$	14,408		$	3,117		$	(30,058	)	$	(36,007	)

Income from discontinued operations	$	—		$	408		$	—		$	57,662
Noncontrolling interest	—			(56		)	—			(2,083		)
Income from discontinued operations used to calculate earnings per share - basic and diluted	$	—		$	352		$	—		$	55,579
Basic earnings (loss) per share
Income (loss) from continuing operations - basic	$	0.21		$	0.05		$	(0.44	)	$	(0.56	)
Income from discontinued operations - basic	—			—			—			0.87
	$	0.21		$	0.05		$	(0.44	)	$	0.31
Diluted earnings (loss) per share
Income (loss) from continuing operations - diluted	$	0.21		$	0.05		$	(0.44	)	$	(0.56	)
Income from discontinued operations - diluted	—			—			—			0.87
	$	0.21		$	0.05		$	(0.44	)	$	0.31

Weighted average common shares outstanding	68,793			68,216			68,700			64,265
Weighted average unvested restricted shares	(440		)	(599		)	(483		)	(603		)
Weighted average shares outstanding - basic	68,353			67,617			68,217			63,662
Weighted average effect of common share equivalents ⁽¹⁾	798			843			—			—
Total weighted average shares outstanding - diluted	69,151			68,460			68,217			63,662


⁽¹⁾	For the twelve months ended December 31, 2014 and December 31, 2013, there are net losses allocable to common shareholders from continuing operations. Therefore, the effect of common share equivalents of 696 and 876 for the years ended December 31, 2014 and 2013, 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, 2014									Quarter Ended December 31, 2013
										Continuing Operations
	Consolidated			PREIT’s share of unconsolidated partnerships			Total			Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue	$	110,054		$	14,145		$	124,199		$	117,937		$	10,512		$	634		$	129,083
Property operating expenses	(41,420		)	(5,119		)	(46,539		)	(47,081		)	(3,192		)	(299		)	(50,572		)
NET OPERATING INCOME	68,634			9,026			77,660			70,856			7,320			335			78,511
General and administrative expenses	(9,294		)	—			(9,294		)	(10,395		)	—			—			(10,395		)
Other income	1,301			—			1,301			1,459			—			—			1,459
Acquisition costs and other expenses	(1,607		)	(377		)	(1,984		)	(561		)	—			—			(561		)
Interest expense, net	(20,373		)	(2,691		)	(23,064		)	(20,227		)	(2,779		)				(23,006		)
Depreciation on non real estate assets	(447		)	—			(447		)	(332		)	—			—			(332		)
Gains on sales of non operating real estate	1,774			—			1,774			—			—			—			—
Dividends on preferred shares	(3,962		)	—			(3,962		)	(3,962		)	—			—			(3,962		)
FFO	36,026			5,958			41,984			36,838			4,541			335			41,714
Depreciation on real estate assets	(36,247		)	(3,782		)	(40,029		)	(36,074		)	(1,844		)	(87		)	(38,005		)
Equity in income of partnerships	2,176			(2,176		)	—			2,697			(2,697		)	—			—
Gains on sales of real estate	13,113			—			13,113			—			—			—			—
Operating results from discontinued operations	—			—			—			248			—			(248		)	—
Gains on sales of discontinued operations	—			—			—			160			—			—			160
Preferred share dividends	3,962			—			3,962			3,962			—			—			3,962
Net income	$	19,030		$	—		$	19,030		$	7,831		$	—		$	—		$	7,831
FFO	$	36,026		$	5,958		$	41,984		$	36,838		$	4,541		$	335		$	41,714
Acquisition costs	926			—			926			—			—			—			—
Loss on hedge ineffectiveness	406			—			406			—			—			—			—
FFO AS ADJUSTED	$	37,358		$	5,958		$	43,316		$	36,838		$	4,541		$	335		$	41,714
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	37,358		$	5,958		$	43,316		$	36,838		$	4,541		$	335		$	41,714
Adjustments:
Straight line rent	(303		)	(67		)	(370		)	(392		)	(33		)	(1		)	(426		)
Recurring capital expenditures	(13,821		)	(280		)	(14,101		)	(7,593		)	(374		)	—			(7,967		)
Tenant allowances	(10,597		)	(29		)	(10,626		)	(11,122		)	(317		)	—			(11,439		)
Capitalized leasing costs	(1,223		)	—			(1,223		)	(1,359		)	—			—			(1,359		)
Amortization of above- and below-market lease intangibles	(83		)	42			(41		)	(288		)	(21		)	(2		)	(311		)
FAD	$	11,331		$	5,624		$	16,955		$	16,084		$	3,796		$	332		$	20,212
Weighted average number of shares outstanding							68,353												67,617
Weighted average effect of full conversion of OP Units							2,124												2,129
Effect of common share equivalents							798												844
Total weighted average shares outstanding, including OP Units							71,275												70,590
FFO PER DILUTED SHARE AND OP UNIT							$	0.59											$	0.59
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED							$	0.61											$	0.59
FAD PER DILUTED SHARE AND OP UNIT							$	0.24											$	0.29
DIVIDEND PER COMMON SHARE							$	0.20											$	0.20

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)



	Year Ended December 31, 2014										Year Ended December 31, 2013
											Continuing Operations
	Consolidated			PREIT’s share of unconsolidated partnerships			Total				Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue	$	426,596		$	47,504		$	474,100			$	431,728		$	40,195		$	10,014		$	481,937
Property operating expenses	(180,427		)	(15,815		)	(196,242		)		(182,279		)	(11,960		)	(4,288		)	(198,527		)
NET OPERATING INCOME	246,169			31,689			277,858				249,449			28,235			5,726			283,410
General and administrative expenses	(35,518		)	—			(35,518		)		(36,975		)	—			—			(36,975		)
Provision for employee separation expense	(4,961		)	—			(4,961		)		(2,314		)	—			—			(2,314		)
Other income	6,107			—			6,107				6,950			—			—			6,950
Project costs and other expenses	(4,937		)	(397		)	(5,334		)		(1,422		)	—			—			(1,422		)
Interest expense, net	(82,165		)	(10,873		)	(93,038		)		(98,731		)	(11,084		)	(1,753		)	(111,568		)
Depreciation on non real estate assets	(1,621		)	—			(1,621		)		(1,132		)	—			—			(1,132		)
Gains on sales of non operating real estate	1,774			—			1,774				—			—			—			—
Dividends on preferred shares	(15,848		)	—			(15,848		)		(15,848		)	—			—			(15,848		)
FFO	109,000			20,419			129,419				99,977			17,151			3,973			121,101
Depreciation on real estate assets	(142,683		)	(9,850		)	(152,533		)		(139,748		)	(7,373		)	(1,161		)	(148,282		)
Impairment of assets	(19,695		)	—			(19,695		)		(6,304		)	—			—			(6,304		)
Equity in income of partnerships	10,569			(10,569		)	—				9,778			(9,778		)	—			—
Net gains on sales of real estate	12,699			—			12,699				—			—			—			—
Operating results from discontinued operations	—			—			—				2,812			—			(2,812		)	—
Impairment of assets of discontinued operations	—			—			—				(23,662		)	—			—			(23,662		)
Gains on sales of discontinued operations	—			—			—				78,512			—			—			78,512
Dividends on preferred shares	15,848			—			15,848				15,848			—			—			15,848
Net (loss) income	$	(14,262	)	$	—		$	(14,262	)		$	37,213		$	—		$	—		$	37,213
FFO	$	109,000		$	20,419		$	129,419			$	99,977		$	17,151		$	3,973		$	121,101
Provision for employee separation expenses	4,961			—			4,961				2,314			—			—			2,314
Acquisition costs	3,441			—			3,441				—			—			—			—
Loss on hedge ineffectiveness	1,761			—			1,761				3,409			—			—			3,409
Accelerated amortization of deferred financing costs	—			—			—				1,076			—			—			1,076
FFO AS ADJUSTED	$	119,163		$	20,419		$	139,582			$	106,776		$	17,151		$	3,973		$	127,900
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	119,163		$	20,419		$	139,582			$	106,776		$	17,151		$	3,973		$	127,900
Adjustments:
Straight line rent	(1,467		)	(110		)	(1,577		)		(1,476		)	(146		)	51			(1,571		)
Recurring capital expenditures	(23,331		)	(610		)	(23,941		)		(15,511		)	(855		)	(130		)	(16,496		)
Tenant allowances	(30,381		)	(524		)	(30,905		)		(24,938		)	(518		)	—			(25,456		)
Capitalized leasing costs	(5,446		)	—			(5,446		)		(5,261		)	—			—			(5,261		)
Amortization of above- and below-market lease intangibles	(979		)	(53		)	(1,032		)		(950		)	(94		)	(15		)	(1,059		)
FAD	$	57,559		$	19,122		$	76,681			$	58,640		$	15,538		$	3,879		$	78,057
Weighted average number of shares outstanding							68,217													63,662
Weighted average effect of full conversion of OP Units							2,128													2,194
Effect of common share equivalents							696													876
Total weighted average shares outstanding, including OP Units							71,041													66,732
FFO PER DILUTED SHARE AND OP UNIT							$	1.82												$	1.81
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED							$	1.96												$	1.92
FAD PER DILUTED SHARE AND OP UNIT							$	1.08												$	1.17
DIVIDEND PER COMMON SHARE							$	0.80												$	0.74
PAYOUT RATIOS
Payout ratio of FFO							44.0		%	⁽¹⁾										40.9		%	⁽²⁾
Payout ratio of FFO as adjusted							40.8		%	⁽¹⁾										38.5		%	⁽²⁾
Payout ratio of FAD							74.1		%	⁽¹⁾										63.2		%	⁽²⁾


⁽¹⁾	Twelve months ended December 31, 2014.


⁽²⁾	Twelve months ended December 31, 2013.

Pennsylvania Real Estate Investment Trust

2014 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 - non anchor tenants less than 10k sf: ⁽³⁾
1st Quarter	39	81,690	N/A		$	48.07	$	48.07		N/A		$	5.20
2nd Quarter	52	152,596	N/A		41.71		41.71			N/A		7.25
3rd Quarter	44	114,791	N/A		43.00		43.00			N/A		7.15
4th Quarter	23	43,782	N/A		51.00		51.00			N/A		5.06
Total/Average	158	392,859	N/A		$	44.44	$	44.44		N/A		$	6.55

New Leases - non anchor tenants 10k sf or greater: ⁽³⁾
1st Quarter	2	25,971	N/A		$	12.50	$	12.50		N/A		$	5.61
2nd Quarter	11	179,206	N/A		25.31		25.31			N/A		5.90
3rd Quarter	4	93,568	N/A		22.19		22.19			N/A		2.98
4th Quarter	2	33,622	N/A		19.41		19.41			N/A		8.83
Total/Average	19	332,367	N/A		$	22.83	$	22.83		N/A		$	5.35

Renewal - non anchor tenants less than 10k sf : ⁽⁴⁾
1st Quarter	48	145,510	$	36.02	$	38.68	$	2.66		7.4	%	$	—
2nd Quarter	105	286,783	33.75		35.27		1.52			4.5	%	—
3rd Quarter	79	188,814	39.00		40.29		1.29			3.3	%	0.16
4th Quarter	110	328,863	39.75		40.61		0.86			2.2	%	1.91
Total/Average	342	949,970	$	37.22	$	38.64	$	1.42		3.8	%	$	0.69

Renewal - non anchor tenants 10k sf or greater: ⁽⁴⁾
1st Quarter	6	107,781	$	16.22	$	17.04	$	0.82		5.1	%	$	—
2nd Quarter	4	124,249	17.51		18.90		1.39			7.9	%	—
3rd Quarter	3	63,256	17.18		15.64		(1.54		)	(9.0	)%	—
4th Quarter	4	122,940	12.58		13.64		1.06			8.4	%	—
Total/Average	17	418,226	$	15.68	$	16.38	$	0.70		4.5	%	$	—

New Leases - Anchor Tenants:
1st Quarter	1	52,055	N/A		$	7.50	$	7.50		N/A		$	4.00
2nd Quarter	1	98,391	N/A		15.34		15.34			N/A		8.33
3rd Quarter	1	71,888	N/A		22.50		22.50			N/A		3.67
4th Quarter	—	—	N/A		—		—			N/A		—
Total/Average	3	222,334	N/A		$	15.82	$	15.82		N/A		$	5.81

Renewal Leases - Anchor Tenants:
1st Quarter	1	101,476	$	2.79	$	2.80	$	0.01		0.4	%	$	—
2nd Quarter	1	77,688	2.85		2.92		0.07			2.5	%	—
3rd Quarter	1	96,357	4.62		4.62		—			—	%	—
4th Quarter	2	254,577	7.52		7.52		—			—	%	—
Total/Average	5	530,098	$	5.40	$	5.42	$	0.02		0.4	%	$	—


⁽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⁾	This category includes leases for reconfigured spaces and lease extensions.

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages



	December 31, 2014										December 31, 2013											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	34.3	%	$543	$69.31	13.3	%	98.2	%	97.3	%	32.5	%	$526	$	66.64	13.2	%	98.0	%	97.1	%	3.2	%	4.0	%	0.1	%	0.2	%	0.2	%
Core Growth Malls	44.8	%	$352	$43.12	13.1	%	97.3	%	94.7	%	42.3	%	$356	$	41.42	12.6	%	97.2	%	94.6	%	(1.1	)%	4.1	%	0.5	%	0.1	%	0.1	%
Opportunistic Malls	4.9	%	$261	$27.14	11.5	%	91.4	%	89.7	%	5.6	%	$264	$	27.22	11.5	%	90.4	%	88.7	%	(1.1	)%	(0.3	)%	—	%	1.0	%	1.0	%
Non Core Malls	5.7	%	$278	$28.17	11.4	%	96.3	%	91.9	%	5.6	%	$268	$	25.97	11.0	%	96.4	%	92.2	%	3.7	%	8.5	%	0.4	%	(0.1	)%	(0.3	)%
Total Same Store Malls	89.7	%	$393	$47.05	12.9	%	96.7	%	94.5	%	86.0	%	$389	$	45.30	12.7	%	96.6	%	94.3	%	1.0	%	3.9	%	0.2	%	0.1	%	0.2	%
Non Same Store Malls	3.9	%	$423	$52.16	14.5%		74.4	%	68.5	%	4.9	%	$356	$	49.55	15.2%		77.3	%	79.4	%	18.8%		5.3	%	(0.7)%		(2.9	)%	(10.9	)%
Total Malls	93.6	%	$394	$47.18	13.0%		95.1	%	93.4	%	90.9	%	$388	$	45.43	12.8%		95.2	%	93.7	%	1.5%		3.9	%	0.2%		(0.1	)%	(0.3	)%
Other Retail Properties	4.1	%	N/A	$18.43	N/A		99.9	%	99.9	%	3.5	%	N/A	$	19.06	N/A		96.1	%	95.3	%	N/A		(3.3	)%	N/A		3.8	%	4.6	%
Total Retail Properties	97.7	%	N/A	$42.49	N/A		95.4	%	94.0	%	94.4	%	N/A	$	41.60	N/A		95.3	%	93.8	%	N/A		2.1	%	N/A		0.1	%	0.2	%
Sold Properties⁽³⁾	1.8	%	N/A	N/A	N/A		N/A		N/A		3.4	%	$246	$	22.37	N/A		91.8	%	88.8	%	N/A		N/A		N/A		N/A		N/A
Other Properties	0.5	%	N/A	N/A	N/A		N/A		N/A		2.2	%	N/A	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Total Portfolio	100.0	%	$394	$42.49			95.4	%	94.0	%	100.0	%	$380	$	40.16			95.0	%	93.5	%			5.8	%			0.4	%	0.5	%


⁽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 $18.74 per square foot as of December 31, 2014 and $17.52 per square foot as of December 31, 2013.


⁽³⁾	Includes Nittany Mall, North Hanover Mall, South Mall, and Whitehall Mall. Average comp sales information as of December 31, 2013 includes Nittany Mall, North Hanover Mall and South Mall.

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot



	December 31, 2014						December 31, 2013						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	$	623	97.2	%	96.6	%	$	621	95.6	%	94.8	%	0.3	%	1.6	%	1.8	%
Willow Grove Park	553		98.4	%	96.8	%	435		97.6	%	95.2	%	27.1	%	0.8	%	1.6	%
Lehigh Valley Mall	540		97.2	%	95.4	%	559		98.3	%	97.2	%	(3.4	)%	(1.1	)%	(1.8	)%
Woodland Mall	532		99.6	%	99.6	%	513		99.7	%	99.7	%	3.7	%	(0.1	)%	(0.1	)%
Jacksonville Mall	454		99.6	%	99.3	%	461		100.0	%	100.0	%	(1.5	)%	(0.4	)%	(0.7	)%
Dartmouth Mall	421		99.0	%	98.4	%	437		98.7	%	97.9	%	(3.7	)%	0.3	%	0.5	%
Premier Malls Subtotal	$	543	98.2	%	97.3	%	$	526	98.0	%	97.1	%	3.2	%	0.2	%	0.2	%
Core Growth Malls
The Mall at Prince Georges	$	436	99.8	%	99.5	%	$	396	99.8	%	99.7	%	10.1	%	—	%	(0.2	)%
Springfield Mall	389		95.2	%	95.2	%	401		97.5	%	97.5	%	(3.0	)%	(2.3	)%	(2.3	)%
Viewmont Mall	388		97.6	%	93.7	%	361		99.4	%	98.3	%	7.5	%	(1.8	)%	(4.6	)%
Patrick Henry Mall	386		97.4	%	96.3	%	392		96.5	%	94.9	%	(1.5	)%	0.9	%	1.4	%
Wyoming Valley Mall	385		96.4	%	89.6	%	381		97.5	%	92.8	%	1.0	%	(1.1	)%	(3.2	)%
Valley Mall	375		97.0	%	94.9	%	360		97.7	%	96.0	%	4.2	%	(0.7	)%	(1.1	)%
Valley View Mall	370		98.9	%	98.5	%	379		98.3	%	97.7	%	(2.4	)%	0.6	%	0.8	%
Capital City Mall	370		98.6	%	97.6	%	379		98.2	%	96.9	%	(2.4	)%	0.4	%	0.7	%
Magnolia Mall	350		99.8	%	99.6	%	351		98.7	%	97.0	%	(0.3	)%	1.1	%	2.6	%
Francis Scott Key Mall	345		99.5	%	99.2	%	357		99.5	%	99.1	%	(3.4	)%	—	%	0.1	%
Moorestown Mall	340		95.3	%	89.5	%	342		92.6	%	83.6	%	(0.6	)%	2.7	%	5.9	%
Crossroads Mall	331		97.6	%	94.8	%	344		97.5	%	94.5	%	(3.8	)%	0.1	%	0.3	%
Plymouth Meeting Mall	318		93.6	%	90.2	%	329		94.2	%	91.1	%	(3.3	)%	(0.6	)%	(0.9	)%
Cumberland Mall	300		93.1	%	88.5	%	309		95.3	%	92.2	%	(2.9	)%	(2.2	)%	(3.7	)%
Exton Square Mall	296		97.4	%	94.3	%	315		96.1	%	91.5	%	(6.0	)%	1.3	%	2.8	%
Logan Valley Mall	292		98.4	%	96.2	%	315		98.2	%	95.8	%	(7.3	)%	0.2	%	0.4	%
Gadsden Mall	282		98.1	%	95.2	%	299		97.5	%	93.9	%	(5.7	)%	0.6	%	1.3	%
Core Growth Malls Subtotal	$	352	97.3	%	94.7	%	$	356	97.2	%	94.6	%	(1.1	)%	0.1	%	0.1	%
Opportunistic Malls
Beaver Valley Mall	$	270	96.5	%	92.4	%	$	272	97.5	%	94.6	%	(0.7	)%	(1.0	)%	(2.2	)%
Wiregrass Commons Mall	264		94.6	%	92.1	%	270		92.0	%	88.4	%	(2.2	)%	2.6	%	3.7	%
New River Valley Mall	263		89.0	%	99.0	%	275		86.1	%	97.2	%	(4.4	)%	2.9	%	1.8	%
Voorhees Town Center	242		76.1	%	75.7	%	219		73.2	%	72.8	%	10.5	%	2.9	%	2.9	%
Opportunistic Malls Subtotal	$	261	91.4	%	89.7	%	$	264	90.4	%	88.7	%	(1.1	)%	1.0	%	1.0	%

Malls Excluding Non Core and Redevelopment Subtotal	$	403	96.8	%	94.8	%	$	401	96.6	%	94.6	%	0.5	%	0.2	%	0.2	%
Non Core Malls
Washington Crown Center	$	327	95.7	%	92.1	%	$	259	91.6	%	84.4	%	26.3	%	4.1	%	7.7	%
Palmer Park Mall	303		96.2	%	87.9	%	300		98.1	%	93.9	%	1.0	%	(1.9	)%	(6.0	)%
Uniontown Mall	274		94.4	%	87.3	%	266		97.4	%	94.1	%	3.0	%	(3.0	)%	(6.8	)%
Lycoming Mall	246		98.7	%	97.4	%	255		98.0	%	96.1	%	(3.5	)%	0.7	%	1.3	%
Non Core Malls Subtotal	$	278	96.3	%	91.9	%	$	268	96.4	%	92.2	%	3.7	%	(0.1	)%	(0.3	)%
Same Store Malls weighted average	$	393	96.7	%	94.5	%	$	389	96.6	%	94.3	%	1.0	%	0.1	%	0.2	%
Non Same Store Redevelopment Mall
The Gallery at Market East	$	423	74.4	%	68.5	%	$	356	77.3	%	79.4	%	18.8	%	(2.9	)%	(10.9	)%
Total Continuing Malls weighted average	$	394	95.1	%	93.4	%	$	388	95.2	%	93.7	%	1.5	%	(0.1	)%	(0.3	)%
Sold Properties	N/A		N/A		N/A		$	246	91.3	%	90.3	%	N/A		N/A		N/A
Total Reported weighted average	$	394	95.1	%	93.4	%	$	380	95.0	%	93.5	%	3.7	%	0.1	%	(0.1	)%


⁽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

Top Twenty Tenants



Tenant ⁽¹⁾	Total Number of Locations	Percentage of Annualized Gross Rent⁽²⁾
L Brands, Inc.	65	3.5	%
Signet Jewelers Limited	96	3.1	%
Gap, Inc.	36	2.9	%
Foot Locker, Inc.	56	2.9	%
J.C. Penney Company, Inc. ^{(3) (4)}	25	2.6	%
American Eagle Outfitters, Inc.	33	2.4	%
Sears Holding Corporation	21	1.6	%
Dick's Sporting Goods, Inc.	10	1.4	%
Luxottica Group S.p.A.	43	1.4	%
Genesco, Inc.	57	1.4	%
Ascena Retail Group, Inc.	39	1.4	%
Macy's, Inc.	23	1.4	%
Abercrombie & Fitch Co.	18	1.4	%
Boscov's Department Store	8	1.2	%
Aeropostale, Inc.	32	1.2	%
The Children's Place Retail Stores, Inc.	27	1.2	%
Regal Entertainment Group	4	1.1	%
The Finish Line, Inc.	22	1.1	%
Shoe Show, Inc.	23	1.1	%
Advent CR Holdings, Inc.	16	1.0	%
Total Top 20 Tenants	654	35.1	%
Total Leases	2,688	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 closed in May 2014. The tenant is obligated to pay rent through the end of the lease in May 2020.


⁽⁴⁾	Includes a landlord owned store located at Cumberland Mall which the tenant has announced that it intends to close in April 2015.

Pennsylvania Real Estate Investment Trust

Lease Expirations as of December 31, 2014

(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
2014 and Prior	211	524,416	4.8	%	$	17,722	$	15,797	4.6	%	$	33.79
2015	400	1,347,128	12.4	%	47,714		43,062		12.7	%	35.42
2016	438	1,629,483	15.0	%	58,329		52,502		15.4	%	35.80
2017	380	1,211,148	11.1	%	45,981		42,061		12.4	%	37.96
2018	260	1,181,478	10.9	%	41,650		36,879		10.9	%	35.25
2019	221	992,659	9.1	%	34,051		30,826		9.1	%	34.30
2020	123	866,470	8.0	%	22,421		20,649		6.1	%	25.88
2021	111	472,433	4.3	%	17,655		15,521		4.6	%	37.37
2022	118	549,580	5.0	%	20,565		18,458		5.4	%	37.42
2023	146	818,224	7.5	%	28,742		25,397		7.5	%	35.13
2024	126	589,492	5.4	%	23,732		21,954		6.5	%	40.26
Thereafter	68	704,690	6.5	%	17,178		16,375		4.8	%	24.38
Total/Average	2,602	10,887,201	100.0	%	$	375,740	$	339,481	100.0	%	$	34.51



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
2015 ⁽⁵⁾	7	750,037	7.9	%	$	3,387	$	3,387	7.4	%	$	4.52
2016	17	1,732,683	18.2	%	6,728		6,728		14.7	%	3.88
2017	9	1,319,105	13.9	%	4,586		4,235		9.3	%	3.48
2018	11	1,163,222	12.2	%	5,105		5,105		11.2	%	4.39
2019	18	1,857,420	19.5	%	7,336		6,702		14.7	%	3.95
2020 ⁽⁶⁾	7	801,161	8.4	%	3,650		3,650		8.0	%	4.56
2021	2	126,805	1.3	%	2,364		1,182		2.6	%	18.64
2022	4	521,173	5.5	%	2,646		2,646		5.8	%	5.08
2023	—	—	—	%	—		—		—	%	N/A
2024	2	123,225	1.3	%	2,316		1,158		2.5	%	18.79
Thereafter	9	1,119,664	11.8	%	17,078		10,865		23.8	%	15.25
Total/Average	86	9,514,495	100.0	%	$	55,196	$	45,658	100.0	%	$	5.80


⁽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 514,056 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.


⁽⁵⁾	Includes a landlord owned store located at Cumberland Mall which the tenant announced it will close in April 2015.


⁽⁶⁾	Includes a landlord owned store located at Exton Square Mall which the tenant closed in May 2014. The tenant is obligated to pay rent through the end of the lease in May 2020.

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2014

(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	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	229	437	23	1,306
Dartmouth Mall	MA	100%	1997	1971/2000	—	—	100	108	—	—	—	208	140	—	—	—	—	—	140	142	175	5	670
Jacksonville Mall	NC	100%	2003	1981/2008	—	—	52	117	—	—	73	242	—	—	—	—	—	—	—	113	138	2	495
Lehigh Valley Mall	PA	50%	1973	1977/2007	—	212	—	—	165	—	—	377	—	207	—	—	—	—	207	180	379	27	1,170
Willow Grove Park	PA	100%	2000-03	1982/2001	40	225	125	—	—	—	—	390	237	—	176	—	—	—	413	87	277	12	1,179
Woodland Mall	MI	100%	2005	1968/1998	—	—	—	—	—	—	—	—	157	255	313	—	—	—	725	167	275	2	1,169
Total Premier Malls					178	437	277	225	165	—	73	1,355	839	636	489	—	—	—	1,964	918	1,681	71	5,989
Core Growth Malls
Capital City Mall	PA	100%	2003	1974/2005	—	—	103	101	—	—	—	204	120	—	—	—	—	—	120	81	202	7	614
Crossroads Mall	WV	100%	2003	1981	—	—	90	87	—	—	78	255	—	—	—	—	—	—	—	74	129	11	469
Cumberland Mall ⁽¹⁾	NJ	100%	2005	1973/2003	—	—	51	—	—	—	213	264	—	—	—	155	—	118	273	200	158	46	941
Exton Square Mall ⁽²⁾	PA	100%	2003	1973/2000	—	—	118	144	178	—	—	440	181	—	96	—	—	—	277	59	291	21	1,088
Francis Scott Key Mall	MD	100%	2003	1978/1991	—	—	101	121	—	—	—	222	139	—	—	—	—	—	139	181	210	3	755
Gadsden Mall	AL	100%	2005	1974/1990	—	—	88	112	—	—	101	301	—	—	—	—	—	—	—	96	100	10	507
Logan Valley Mall	PA	100%	2003	1960/1997	—	150	146	159	—	—	—	455	—	—	—	—	—	—	—	82	234	12	783
Magnolia Mall	SC	100%	1997	1979/2007	—	—	104	91	—	—	148	343	—	—	—	—	—	—	—	99	176	1	619
Moorestown Mall	NJ	100%	2003	1963/2008	—	—	—	206	203	—	—	409	200	—	—	—	—	121	321	88	212	35	1,065
Patrick Henry Mall	VA	100%	2003	1988/2005	—	—	85	—	—	—	50	135	140	—	—	—	—	145	285	38	248	11	717
Plymouth Meeting Mall	PA	100%	2003	1966/2009	—	—	—	—	189	—	65	254	215	—	—	—	—	—	215	198	234	47	948
The Mall at Prince Georges	MD	100%	1998	1959/2004	—	196	149	—	—	—	135	480	—	—	—	—	—	—	—	155	280	2	917
Springfield Mall	PA	50%	2005	1974/1997	—	—	—	—	—	—	—	—	192	—	—	—	—	196	388	10	203	11	612
Valley Mall	MD	100%	2003	1974/1999	—	—	157	—	—	123	—	280	120	—	123	—	—	—	243	127	242	20	912
Valley View Mall	WI	100%	2003	1980/2001	—	—	96	—	—	—	—	96	100	—	113	—	42	—	255	98	176	4	629
Viewmont Mall	PA	100%	2003	1968/2006	—	—	193	193	—	—	—	386	140	—	—	—	—	—	140	66	161	15	768
Wyoming Valley Mall	PA	100%	2003	1971/2006	—	146	173	118	—	155	—	592	—	—	—	—	—	—	—	101	184	33	910
Core Growth Malls					—	492	1,654	1,332	570	278	790	5,116	1,547	—	332	155	42	580	2,656	1,753	3,440	289	13,254

(continued on next page)

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2014 (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	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	211	33	1,153
New River Valley Mall	VA	100%	2003	1988/2007	—	—	50	—	—	—	89	139	—	—	—	—	—	—	—	135	139	51	464
Voorhees Town Center	NJ	100%	2003	1970/2007	—	—	—	—	4	—	—	4	224	—	—	173	—	24	421	73	159	75	732
Wiregrass Commons Mall	AL	100%	2003	1986/2008	—	—	—	—	—	—	95	95	—	84	—	—	—	248	332	10	181	16	634
Opportunistic Malls					—	—	176	191	198	—	184	749	429	84	—	173	—	272	958	411	690	175	2,983
Non Core Malls
Lycoming Mall	PA	100%	2003	1978/2007	—	—	62	130	—	60	81	333	120	—	—	—	—	—	120	162	183	9	807
Palmer Park Mall	PA	100%	1972/2003	1972/1998	—	—	—	—	192	122	—	314	—	—	—	—	—	—	—	—	126	17	457
Uniontown Mall	PA	100%	2003	1972/1990	—	—	63	100	—	80	148	391	—	—	—	—	—	—	—	102	168	39	700
Washington Crown Center	PA	100%	2003	1969/1999	—	—	—	83	—	78	84	245	140	—	—	—	—	—	140	141	124	23	673
Non Core Malls					—	—	125	313	192	340	313	1,283	260	—	—	—	—	—	260	405	601	88	2,637
Non Same Store Redevelopment
The Gallery at Market East ⁽³⁾	PA	50%	2003	1977/1990	—	—	—	—	—	—	786	786	—	—	—	—	—	—	—	109	202	377	1,474
Non Same Store Redevelopment					—	—	—	—	—	—	786	786	—	—	—	—	—	—	—	109	202	377	1,474
Strip and Power Centers
Street Level Retail (2 properties)	PA	100%	2014	1910/1960	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	49	24	1	74
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	343	54	1	705
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
Strip and Power Centers					—	—	—	—	—	—	225	225	—	—	—	—	—	894	894	1,015	171	2	2,307
Portfolio Totals					178	929	2,232	2,061	1,125	618	2,371	9,514	3,075	720	821	328	42	1,746	6,732	4,611	6,785	1,002	28,644


⁽¹⁾	JCPenney announced it will close this landlord owned store in April 2015.


⁽²⁾	JCPenney closed this landlord owned store at this property in May 2014. The tenant is obligated to pay rent through the end of the lease in May 2020.


⁽³⁾	A portion of the property known as The Gallery was initially acquired in 2003 with further acquisitions of other buildings comprising The Gallery made in 2004, 2006 and 2013. In July 2014, the Company entered into a 50/50 JV partnership.

Pennsylvania Real Estate Investment Trust

Department Store Lease Expirations as of December 31, 2014



	Department Store Tenants
Properties	Belk	Bon-Ton	Boscov’s	Burlington Coat Factory	Dillard’s	jcpenney	Kohl’s	Lord & Taylor	Macy’s	Nordstrom	Sears	Target
Premier Malls
Cherry Hill Mall	—	—	—	—	—	(1)	—	—	(1)	2025	—	—
Dartmouth Mall	—	—	—	—	—	2019	—	—	(1)	—	2016	—
Jacksonville Mall	2016	—	—	—	—	2020	—	—	—	—	2016	—
Lehigh Valley Mall	—	—	2017	—	—	(1)	—	—	2017	—	—	—
Willow Grove Park ⁽²⁾	—	—	—	—	—	2032	—	—	2022, (1)	2022	(1)	—
Woodland Mall	—	—	—	—	—	(1)	(1)	—	(1)	—	(1)	—

Core Growth Malls
Capital City Mall	—	—	—	—	—	2015	—	—	(1)	—	2019	—
Crossroads Mall	2019	—	—	—	—	2016	—	—	—	—	2016	—
Cumberland Mall ⁽³⁾	—	—	(1)	2019	—	2015	—	—	—	—	—	—
Exton Square Mall ⁽⁴⁾⁽⁵⁾	—	—	2019	—	—	2020	—	—	(1)	—	2019, (1)	—
Francis Scott Key Mall	—	—	—	—	—	2016	—	—	(1)	—	2018	—
Gadsden Mall	2019	—	—	—	—	2028	—	—	—	—	2019	—
Logan Valley Mall	—	—	—	—	—	2017	—	—	2020	—	2016	—
Magnolia Mall	2016	—	—	—	—	2017	—	—	—	—	2017	—
Moorestown Mall	—	—	2020	—	—	—	—	(1)	(1)	—	2022	—
Patrick Henry Mall	—	—	—	—	(1)	2015	—	—	(1)	—	—	—
Plymouth Meeting Mall	—	—	2016	—	—	—	—	—	(1)	—	—	—
The Mall at Prince Georges	—	—	—	—	—	2016	—	—	2018	—	—	2019
Springfield Mall	—	—	—	—	—	—	—	—	(1)	—	—	(1)
Valley Mall	—	2019	—	—	—	2019	—	—	(1)	—	(1)	—
Valley View Mall	—	(1)	—	—	—	2020	—	—	(1)	—	(1)	—
Viewmont Mall	—	—	—	—	—	2015	—	—	(1)	—	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, 2014 (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	—	—	(1)	—	2016	—
New River Valley Mall	2020	—	—	—	—	2018	—	—	—	—	—	—
Voorhees Town Center	—	—	(1)	—	—	—	—	—	(1)	—	—	—
Wiregrass Commons Mall	(1)	—	—	2020	(1)	(1)	—	—	—	—	—	—

Non Core Malls
Lycoming Mall	—	2016	—	2019	—	2015	—	—	(1)	—	2018	—
Palmer Park Mall	—	2019	2018	—	—	—	—	—	—	—	—	—
Uniontown Mall	—	2016	—	2019	—	2015	—	—	—	—	2018	—
Washington Crown Center	—	2018	—	—	—	—	—	—	(1)	—	2019	—

Non Same Store Redevelopment Mall
The Gallery at Market East	—	—	—	2032	—	—	—	—	—	—	—	—

Strip and Power Centers
Street Level Retail (2 properties)	—	—	—	—	—	—	—	—	—	—	—	—
Metroplex Shopping Center	—	—	—	—	—	—	—	—	—	—	—	(1)
The Court at Oxford Valley	—	—	—	—	—	—	—	—	—	—	—	—
Red Rose Commons	—	—	—	—	—	—	—	—	—	—	—	—
Springfield Park	—	—	—	—	—	—	—	—	—	—	—	(1)
Total PREIT Owned Department Stores	5	6	6	5	—	21	—	—	5	2	16	1
Total Non-PREIT Owned Department Stores	1	1	2	—	2	4	1	1	18	—	5	3


⁽¹⁾	Department store is not PREIT owned.


⁽²⁾	The property has a Macy’s that is PREIT owned and a Bloomingdale’s that is not PREIT owned.


⁽³⁾	JCPenney announced it will close this landlord owned store in April 2015.


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


⁽⁵⁾	JCPenney closed this landlord owned store at this property in May 2014. The tenant is obligated to pay rent through the end of the lease in May 2020.

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method ⁽¹⁾

(in thousands, except per share amounts)



	December 31, 2014									December 31, 2013
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,216,231		$	332,950		$	3,549,181		$	3,450,317		$	218,167		$	3,668,484
Construction in progress	60,452			16,578			77,030			68,835			953			69,788
Land held for development	8,721			—			8,721			8,716			—			8,716
Total investments in real estate	3,285,404			349,528			3,634,932			3,527,868			219,120			3,746,988
Accumulated depreciation	(1,061,051		)	(97,786		)	(1,158,837		)	(1,012,746		)	(86,289		)	(1,099,035		)
Net investments in real estate	2,224,353			251,742			2,476,095			2,515,122			132,831			2,647,953
Investments in partnerships, at equity	140,882			(140,882		)	—			15,963			(15,963		)	—
Other assets:
Cash and cash equivalents	40,433			7,288			47,721			34,230			7,637			41,867
Rent and other receivables ⁽²⁾	40,566			3,970			44,536			46,439			1,783			48,222
Intangible assets, net	6,452			6,071			12,523			9,075			70			9,145
Deferred costs and other assets, net	87,017			7,252			94,269			97,752			15,889			113,641
Total assets	$	2,539,703		$	135,441		$	2,675,144		$	2,718,581		$	142,247		$	2,860,828
LIABILITIES AND EQUITY
Liabilities:
Mortgage loans	$	1,407,947		$	190,310		$	1,598,257		$	1,502,650		$	198,451		$	1,701,101
Term Loans	130,000			—			130,000			—			—			—
Revolving Facility	—			—			—			130,000			—			130,000
Tenants’ deposits and deferred rent	15,541			4,078			19,619			17,896			4,151			22,047
Distributions in excess of partnership investments	65,956			(65,956		)	—			64,491			(64,491		)	—
Fair value of derivative instruments	2,490			—			2,490			844			—			844
Other liabilities	73,032			7,009			80,041			76,248			4,136			80,384
Total liabilities	1,694,966			135,441			1,830,407			1,792,129			142,247			1,934,376
Equity:
Total equity	844,737			—			844,737			926,452			—			926,452
Total liabilities and equity	$	2,539,703		$	135,441		$	2,675,144		$	2,718,581		$	142,247		$	2,860,828


⁽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 $27.8 million ($23.7 million consolidated, $4.1 million unconsolidated) as of December 31, 2014 and $28.9 million ($26.5 million consolidated, $2.4 million unconsolidated) as of December 31, 2013.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾

(in thousands)



	December 31, 2014								December 31, 2013
	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	$	74,120	$	—	$	30,465	$	43,655	$	72,133	$	—	$	27,238	$	44,895
Capital City Mall	99,665		152		34,419		65,398		98,304		—		30,772		67,532
Cherry Hill Mall	470,493		—		163,178		307,315		461,126		—		139,719		321,407
Crossroads Mall	48,872		195		15,098		33,969		47,658		192		12,959		34,891
Cumberland Mall	67,422		375		17,412		50,385		66,546		—		15,102		51,444
Dartmouth Mall	64,544		—		32,540		32,004		63,842		—		30,532		33,310
Exton Square Mall	158,622		1		41,473		117,150		154,918		1,007		37,154		118,771
Francis Scott Key Mall	90,309		1,681		28,480		63,510		81,449		400		25,159		56,690
Gadsden Mall	64,301		—		16,483		47,818		63,365		—		14,276		49,089
The Gallery at Market East	—		—		—		—		245,189		7,406		46,201		206,394
Jacksonville Mall	84,173		2		27,148		57,027		82,094		—		24,214		57,880
Logan Valley Mall	100,887		—		32,222		68,665		98,012		—		29,457		68,555
Lycoming Mall	79,240		—		26,547		52,693		78,665		—		23,791		54,874
Magnolia Mall	90,725		—		37,033		53,692		91,666		—		33,817		57,849
Moorestown Mall	131,353		2,147		39,061		94,439		114,883		3,216		33,446		84,653
New River Valley Mall	59,340		—		27,497		31,843		59,169		—		24,375		34,794
Nittany Mall ⁽²⁾	—		—		—		—		44,454		—		12,961		31,493
North Hanover Mall ⁽²⁾	—		—		—		—		22,852		—		6,747		16,105
Palmer Park Mall	34,717		—		15,003		19,714		34,866		—		14,320		20,546
Patrick Henry Mall	146,434		—		53,642		92,792		144,331		—		47,753		96,578
Plymouth Meeting Mall	169,981		—		54,037		115,944		167,174		2,080		46,953		122,301
The Mall at Prince Georges	103,738		35		45,879		57,894		103,462		—		42,357		61,105
South Mall ⁽³⁾	—		—		—		—		32,655		—		8,708		23,947
Uniontown Mall	43,751		—		15,973		27,778		43,037		—		14,285		28,752
Valley Mall	100,682		177		32,217		68,642		98,297		—		28,898		69,399
Valley View Mall	78,811		1,032		20,426		59,417		69,925		—		18,212		51,713
Viewmont Mall	98,404		—		29,834		68,570		92,644		—		26,362		66,282
Voorhees Town Center	83,501		589		28,152		55,938		79,888		302		22,989		57,201
Washington Crown Center	51,562		30		16,747		34,845		43,835		141		15,369		28,607
Willow Grove Park	236,236		—		73,260		162,976		232,099		—		65,183		166,916
Wiregrass Commons Mall	56,539		—		16,939		39,600		54,885		—		14,744		40,141
Woodland Mall	192,976		—		51,048		141,928		191,781		—		44,730		147,051
Wyoming Valley Mall	112,074		—		37,980		74,094		110,148		—		33,929		76,219
Total Consolidated Malls	3,193,472		6,416		1,060,193		2,139,695		3,445,352		14,744		1,012,712		2,447,384
Unconsolidated Malls
The Gallery at Market East	126,515		8,965		15,245		120,235		—		—		—		—
Lehigh Valley Mall	46,423		418		23,750		23,091		45,726		162		21,869		24,019
Springfield Mall	57,017		9		16,670		40,356		56,897		6		15,145		41,758
Total Unconsolidated Malls	229,955		9,392		55,665		183,682		102,623		168		37,014		65,777
TOTAL MALLS	$	3,423,427	$	15,808	$	1,115,858	$	2,323,377	$	3,547,975	$	14,912	$	1,049,726	$	2,513,161

(continued on next page)

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾ (continued)

(in thousands)



	December 31, 2014								December 31, 2013
	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
Monroe Marketplace ⁽⁴⁾	$	1,515	$	—	$	60	$	1,455	$	1,515	$	—	$	34	$	1,481
Pitney Road Plaza ⁽⁵⁾	1,017		20		13		1,024		—		75		—		75
Street Level Retail (2 properties)	20,227		—		785		19,442		—		—		—		—
Westgate Anchor Pad ⁽⁶⁾	—		—		—		—		3,450		—		—		3,450
Total Consolidated Strip and Power Centers	22,759		20		858		21,921		4,965		75		34		5,006
Unconsolidated Strip and Power Centers
Metroplex Shopping Center	42,919		—		22,125		20,794		42,919		—		20,514		22,405
The Court at Oxford Valley	28,242		—		10,532		17,710		28,760		—		10,317		18,443
Red Rose Commons	13,617		1		5,221		8,397		13,617		1		5,009		8,609
Springfield Park	8,519		—		2,216		6,303		7,217		—		1,986		5,231
Whitehall Mall	—		—		—		—		16,791		—		9,528		7,263
Total Unconsolidated Strip and Power Centers	93,297		1		40,094		53,204		109,304		1		47,354		61,951
TOTAL STRIP AND POWER CENTERS	$	116,056	$	21	$	40,952	$	75,125	$	114,269	$	76	$	47,388	$	66,957
Consolidated Properties Under Development
Springhills	$	—	$	19,230	$	—	$	19,230	$	—	$	19,230	$	—	$	19,230
White Clay Point	—		34,786		—		34,786		—		34,786		—		34,786
Total Consolidated Properties Under Development	—		54,016		—		54,016		—		54,016		—		54,016
Unconsolidated Properties Under Development
Gloucester Premium Outlets	3,458		6,401		—		9,859		—		—		—		—
Pavilion at Market East	6,240		784		2,027		4,997		6,240		784		1,921		5,103
Total Unconsolidated Properties Under Development	9,698		7,185		2,027		14,856		6,240		784		1,921		5,103
Other Properties
Land held for development - consolidated ⁽⁵⁾	8,721		—		—		8,721		8,716		—		—		8,716
Total Other Properties	8,721		—		—		8,721		8,716		—		—		8,716
TOTAL DEVELOPMENT AND OTHER	$	18,419	$	61,201	$	2,027	$	77,593	$	14,956	$	54,800	$	1,921	$	67,835
TOTAL INVESTMENT IN REAL ESTATE	$	3,557,902	$	77,030	$	1,158,837	$	2,476,095	$	3,677,200	$	69,788	$	1,099,035	$	2,647,953
CONSOLIDATED PROPERTIES	$	3,224,952	$	60,452	$	1,061,051	$	2,224,353	$	3,459,033	$	68,835	$	1,012,746	$	2,515,122
UNCONSOLIDATED PROPERTIES	332,950		16,578		97,786		251,742		218,167		953		86,289		132,831
TOTAL INVESTMENT IN REAL ESTATE	$	3,557,902	$	77,030	$	1,158,837	$	2,476,095	$	3,677,200	$	69,788	$	1,099,035	$	2,647,953


⁽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⁾	Property was sold in September 2014.


⁽³⁾	Property was sold in June 2014


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


⁽⁵⁾	Consists of one parcel remaining after sale of the property in 2011.


⁽⁶⁾	Investment in real estate previously combined with South Mall. This property was sold in December 2014.

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)



	Quarter Ended December 31, 2014						Year Ended December 31, 2014
	Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated		Total
Redevelopment projects with incremental GLA and/or anchor replacement ⁽¹⁾	$	18,103	$	2,319	$	20,422	$	52,556	$	4,888	$	57,444
New development projects	185		4,114		4,299		1,026		9,860		10,886
Renovation with no incremental GLA	2,327		—		2,327		5,071		—		5,071
Tenant allowances	10,597		29		10,626		30,381		524		30,905
Recurring capital expenditures:
CAM expenditures	8,435		277		8,712		15,868		592		16,460
Non-CAM expenditures	5,386		3		5,389		7,463		18		7,481
Total recurring capital expenditures	13,821		280		14,101		23,331		610		23,941
Total	$	45,033	$	6,742	$	51,775	$	112,365	$	15,882	$	128,247


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

Pennsylvania Real Estate Investment Trust

Debt Analysis as of December 31, 2014

(in thousands)



	Outstanding Debt
	Fixed Rate⁽¹⁾			% of Total Indebtedness		Variable Rate			% of Total Indebtedness		Total			% of Total Indebtedness
Consolidated mortgage loans payable	$	1,407,947		81.5	%	$	—		—	%	$	1,407,947		81.5	%
Unconsolidated mortgage loans payable	186,374			10.8	%	3,936			0.2	%	190,310			11.0	%
2014 Term Loans	130,000			7.5	%	—			—	%	130,000			7.5	%
2013 Credit Facility	—			—	%	—			—	%	—			—	%
TOTAL OUTSTANDING DEBT	$	1,724,321		99.8	%	$	3,936		0.2	%	$	1,728,257		100.0	%
AVERAGE STATED INTEREST RATE	4.83		%			2.81		%			4.83		%


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



		Average Debt Balance
		Mortgage Debt			2013 Revolving Facility		2014 Term Loans		TOTAL
Beginning Balance	9/30/2014	$	1,609,941		$	—	$	130,000	$	1,739,941
Mortgage loan amortization		(6,969		)	—		—		(6,969		)
Whitehall Mall mortgage loan assumption		(5,117		)	—		—		(5,117		)
Gloucester Premium Outlet construction loan draw		402			—		—		402
Ending Balance	12/31/2014	$	1,598,257		$	—	$	130,000	$	1,728,257
Weighted Average Balance		$	1,607,625		$	—	$	130,000	$	1,737,625



	Debt Maturities⁽¹⁾
Year	Scheduled Amortization		Mortgage Balance at Maturity		2013 Revolving Facility		2014 Term Loans		Total Debt
2015	$	24,186	$	306,020	$	—	$	—	$	330,206
2016	15,635		219,480		—		—		235,115
2017	15,335		153,283		—		—		168,618
2018	15,115		141,934		—		—		157,049
2019	15,652		28,050		—		100,000		143,702
Thereafter	40,791		622,776		—		30,000		693,567
	$	126,714	$	1,471,543	$	—	$	130,000	$	1,728,257


⁽¹⁾	The weighted average period to mortgage maturity is 4.68 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
2015	$	312,616	5.69	%
2016	224,801		5.55	%
2017	153,534		5.45	%
2018	144,990		3.71	%
2019	28,050		4.38	%
Thereafter	734,266		4.61	%
Total	$	1,598,257	4.95	%

Pennsylvania Real Estate Investment Trust

Debt Schedule as of December 31, 2014

(in thousands)



	Debt ⁽¹⁾		Interest Rate		Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Mortgage Loans
Springfield East ⁽²⁾	$	2,075	5.39	%	$	92	$	2,061	Mar 2015	Mar 2020
Springfield Park ⁽²⁾	2,437		5.39	%	107		2,419		Mar 2015	Mar 2020
Magnolia Mall	55,679		5.33	%	4,413		54,965		July 2015	July 2015
Patrick Henry Mall	85,013		6.34	%	7,743		83,210		Oct 2015	Oct 2015
Springfield Mall ⁽²⁾	31,306		4.77	%	2,118		30,741		Nov 2015	Nov 2015
Willow Grove Park	136,106		5.65	%	11,083		132,624		Dec 2015	Dec 2015
Valley Mall	80,930		5.49	%	5,014		78,996		Mar 2016	Mar 2016
Woodland Mall	143,871		5.58	%	10,761		140,484		Apr 2016	Apr 2016
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⁾	33,963		3.72	%	3,001		30,907		Mar 2018	Mar 2018
New River Valley Mall ⁽²⁾⁽³⁾	28,050		4.38	%	1,229		28,050		Jan 2019	Jan 2019
Valley View Mall	30,162		5.95	%	2,290		27,161		July 2020	July 2020
Lehigh Valley Mall	65,697		5.88	%	4,972		58,519		July 2020	July 2020
Red Rose Commons	14,211		5.14	%	978		12,378		July 2021	July 2021
The Court at Oxford Valley	29,058		5.56	%	1,668		25,782		July 2021	July 2021
Capital City Mall	63,177		5.30	%	4,379		54,715		Mar 2022	Mar 2022
Cumberland Mall	49,171		4.40	%	3,433		38,157		Aug 2022	Aug 2022
Cherry Hill Mall	298,232		3.90	%	11,700		252,568		Sept 2022	Sept 2022
Dartmouth Mall	64,968		3.97	%	3,825		53,300		Apr 2023	Apr 2023
Metroplex Shopping Center	41,590		5.00	%	2,681		33,502		Oct 2023	Oct 2023
Wyoming Valley Mall ⁽⁴⁾	78,000		5.17	%	4,034		66,694		Dec 2023	Dec 2023
Total Fixed Rate Mortgage Loans	$	1,594,321	4.95	%	$	97,897	$	1,467,858
Variable Rate Mortgage Loans
Pavilion East Associates	$	3,534	2.94	%	$	253	$	3,283	Aug 2017	Aug 2017
Gloucester Premium Outlets	402		1.66	%	7		402		Jun 2018	Jun 2019
Total Variable Rate Mortgage Loans	$	3,936	2.81	%	$	260	$	3,685
Total Mortgage Loans	$	1,598,257	4.95	%	$	98,157	$	1,471,543
CONSOLIDATED MORTGAGE LOANS	$	1,407,947	4.90	%	$	85,281	$	1,302,456
UNCONSOLIDATED MORTGAGE LOANS	190,310		5.33	%	12,876		169,087
2014 5 YEAR TERM LOAN ⁽²⁾	100,000		3.24	%	3,236		100,000		Jan 2019	Jan 2019
2014 7 YEAR TERM LOAN ⁽²⁾	30,000		3.73	%	1,118		30,000		Jan 2021	Jan 2021
2013 REVOLVING FACILITY	—		—	%	—		—		Apr 2016	Apr 2018
Total	$	1,728,257	4.83	%	$	102,511	$	1,601,543
AMORTIZATION OF DEFERRED FINANCING FEES	—		0.19	%	—		—
EFFECTIVE INTEREST RATE	$	1,728,257	5.02	%	$	102,511	$	1,601,543


⁽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⁾	Payments are of interest only until April 2015.

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios ⁽¹⁾




	December 31, 2014
Consolidated Liabilities to Gross Asset Value	47.64	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 60%
Secured Indebtedness to Gross Asset Value	40.76	%
Secured indebtedness to Gross Asset Value may not exceed 60%
Adjusted EBITDA to Fixed Charges	2.02
Adjusted EBITDA may not be less than 1.45 to 1.00
Unencumbered Adjusted NOI to Unsecured Interest Expense	11.85
Unencumbered Adjusted NOI to Unsecured Interest Expense may not be less than 1.75 to 1.00
Unencumbered Debt Yield	51.80	%
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, as amended, 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 Annual Report on Form 10-K dated February 28, 2014.

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, extraordinary items (computed in accordance with GAAP) and significant non-recurring events that materially distort the comparative measurement of company performance over time; 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. NAREIT’s established guidance provides that excluding impairment write downs of depreciable real estate is consistent with the NAREIT definition.

FFO is a commonly used measure of operating performance and profitability among REITs. 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 does not include gains and losses on sales of operating real estate assets or impairment write-downs of depreciable real estate, 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, 2014 and 2013 to show the effect of acquisition costs, provision for executive separation expense, loss 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, 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, specifically acquisition costs, provision for employee separation expense, loss on hedge ineffectiveness and accelerated amortization of deferred financing costs.

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 property operating expenses (determined in accordance with GAAP), plus our share of revenue and property operating expenses of our partnership investments as described below, and includes real estate revenue and property operating expenses from properties included in discontinued operations. 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 other income, general and administrative expenses, provision for employee separation expense, 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, acquisition 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, unencumbered debt yield, interest and tangible net worth covenants under our 2013 Revolving Facility, our 2014 Term Loans and the Letter of Credit;


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


•	changes in the retail industry, including consolidation and store closings, particularly among anchor tenants;


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


•	the effects of online shopping and other uses of technology on our retail tenants;


•	risks related to development and redevelopment activities;


•	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 partnership and joint ventures with third parties to acquire or develop properties;


•	our short and long-term liquidity position;


•	the state of unemployment and consumer confidence and spending, and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions and our cash flows, and the value and potential impairment of our properties;


•	general economic, financial and political conditions, including credit and capital market conditions, changes in interest rates or unemployment;


•	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;


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


•	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; and


•	potential dilution from any capital raising transactions.

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