PENNSYLVANIA REAL ESTATE INVESTMENT TRUST - FORM 8-K - EX-99 - EXHIBIT 99.1

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8-K - 8-K - PENNSYLVANIA REAL ESTATE INVESTMENT TRUST	q115supplemental8k.htm

Exhibit 99.1

Supplemental Financial and Operating Information

Quarter Ended March 31, 2015

www.preit.com

NYSE: PEI

NYSE: PEIPRA, PEIPRB

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

March 31, 2015



Table of Contents
Introduction
Company Information	1
Market Capitalization and Capital Resources	2
Operating Results
Statement of Operations - Proportionate Consolidation Method - Quarters Ended March 31, 2015 and March 31, 2014	3
Statement of Net Operating Income - Quarters Ended March 31, 2015 and March 31, 2014	4
Computation of Earnings Per Share	5
Funds From Operations and Funds Available For Distribution - Quarters Ended March 31, 2015 and March 31, 2014	6
Operating Statistics
Leasing Activity Summary	7
Summarized Sales and Rent Per Square Foot and Occupancy Percentages	8
Mall Occupancy Percentage and Sales Per Square Foot	9
Top Twenty Tenants	10
Lease Expirations	11
Property Information	12
Department Store Lease Expirations	14
Balance Sheet
Condensed Balance Sheet - Proportionate Consolidation Method	16
Investment in Real Estate	17
Capital Expenditures	19
Debt Analysis	20
Debt Schedule	21
Selected Debt Ratios	22
Definitions	23
Forward Looking Statements	24

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 March 31, 2015, the Company owned interests in 43 retail properties, 38 of which are operating retail properties, four which are development properties, and one which is under redevelopment (The Gallery). The 38 operating retail properties have a total of 28.5 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 and Investor Relations

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 March 31,						Year Ended December 31,
	2015			2014			2014			2013
TRADING INFORMATION
Common Shares
High Price per share	$	25.34		$	20.05		$	24.35		$	22.54
Low Price per share	$	21.20		$	17.14		$	16.35		$	14.20
Closing Share Price (at the end of period)	$	23.23		$	18.05		$	23.46		$	18.98
Series A Preferred Shares
High Price per share	$	27.62		$	26.16		$	27.24		$	28.06
Low Price per share	$	26.16		$	25.04		$	25.04		$	24.77
Closing Share Price (at the end of period)	$	26.50		$	25.92		$	26.24		$	25.16
Series B Preferred Shares
High Price per share	$	26.89		$	25.30		$	26.41		$	26.86
Low Price per share	$	25.61		$	23.53		$	23.53		$	23.05
Closing Share Price (at the end of period)	$	25.79		$	25.05		$	25.89		$	23.73
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding	69,116			68,742			68,801			68,293
OP Units Outstanding	8,372			2,129			2,122			2,129
Total Common Shares and OP Units Outstanding	77,488			70,871			70,923			70,422
Equity Market Capitalization—Common Shares and OP Units	$	1,800,058		$	1,279,215		$	1,663,848		$	1,336,614
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	$	2,001,308		$	1,480,465		$	1,865,098		$	1,537,864
DEBT CAPITALIZATION
Secured Debt Balance ⁽¹⁾	$	1,601,723		$	1,696,420		$	1,598,257		$	1,701,101
Unsecured Debt Balance ^{(2) (3)}	460,000			155,000			130,000			130,000
Debt Capitalization	2,061,723			1,851,420			1,728,257			1,831,101
TOTAL MARKET CAPITALIZATION	$	4,063,031		$	3,331,885		$	3,593,355		$	3,368,965
Equity Capitalization/Total Market Capitalization	49.3		%	44.4		%	51.9		%	45.6		%
Debt Capitalization/Total Market Capitalization	50.7		%	55.6		%	48.1		%	54.4		%
Unsecured Debt Balance/Total Debt	22.3		%	8.4		%	7.5		%	7.1		%
DISTRIBUTIONS PER COMMON SHARE
Capital Gain Distributions	⁽³⁾			$	—		$	0.11		$	—
Non-Dividend Distributions	⁽³⁾			0.20			0.69			0.74
Distributions per common share	$	0.21		$	0.20		$	0.80		$	0.74
Annualized Dividend Yield ⁽⁴⁾	3.6		%	4.4		%	3.4		%	3.9		%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	48,088		$	37,757		$	47,721		$	41,867
Revolving Facility	400,000			400,000			400,000			400,000
Amount Outstanding	(210,000		)	(25,000		)	—			(130,000		)
Letter of Credit	(14,986		)	—			(7,135		)	—
Available Revolving Facility	175,014			375,000			392,865			270,000
Term Loans	250,000			250,000			250,000			—
Amount Borrowed	(250,000		)	(130,000		)	(130,000		)	—
Available Term Loans	—			120,000			120,000			—
TOTAL	$	223,102		$	532,757		$	560,586		$	311,867
Shelf Registration	$	1,000,000		$	568,750		$	1,000,000		$	568,750


⁽¹⁾	The unsecured debt balance includes a Revolving Facility balance of $210,000 as of March 31, 2015, $25,000 as of March 31, 2014 and $130,000 as of December 31, 2013.


⁽²⁾	The unsecured debt balance includes a Term Loan balance of $250,000 as of March 31, 2015 and $130,000 as of December 31, 2014 and March 31, 2014, respectively.


⁽³⁾	Tax status of 2015 dividend payments will be available in January 2016.


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

Pennsylvania Real Estate Investment Trust

Statement of Operations - Quarters Ended March 31, 2015 and March 31, 2014

Proportionate Consolidation Method

(in thousands)



	Quarter Ended March 31, 2015									Quarter Ended March 31, 2014
	GAAP			PREIT’s share of unconsolidated partnerships⁽¹⁾			Total			GAAP			PREIT’s share of unconsolidated partnerships ⁽¹⁾			Total
REVENUE:
Base rent	$	64,273		$	8,736		$	73,009		$	71,342		$	6,874		$	78,216
Expense reimbursements	31,510			4,020			35,530			34,351			3,289			37,640
Percentage rent	524			85			609			590			52			642
Lease termination revenue	441			—			441			100			12			112
Other real estate revenue	2,035			322			2,357			2,226			282			2,508
Total real estate revenue	98,783			13,163			111,946			108,609			10,509			119,118
Other income	1,274			—			1,274			779			—			779
Total revenue	100,057			13,163			113,220			109,388			10,509			119,897
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes	(33,807		)	(3,889		)	(37,696		)	(39,403		)	(2,724		)	(42,127		)
Utilities	(5,149		)	(498		)	(5,647		)	(8,210		)	(254		)	(8,464		)
Other property operating expenses	(4,196		)	(814		)	(5,010		)	(4,104		)	(557		)	(4,661		)
Total property operating expenses	(43,152		)	(5,201		)	(48,353		)	(51,717		)	(3,535		)	(55,252		)
Depreciation and amortization	(33,189		)	(3,212		)	(36,401		)	(36,235		)	(1,842		)	(38,077		)
General and administrative expenses	(8,943		)	—			(8,943		)	(9,077		)	—			(9,077		)
Acquisition costs and other expenses	(4,451		)	(27		)	(4,478		)	(1,646		)	—			(1,646		)
Total operating expenses	(89,735		)	(8,440		)	(98,175		)	(98,675		)	(5,377		)	(104,052		)
Interest expense, net⁽²⁾	(20,145		)	(2,640		)	(22,785		)	(20,170		)	(2,730		)	(22,900		)
Impairment of assets	(6,240		)	—			(6,240		)	(1,300		)	—			(1,300		)
Total expenses	(116,120		)	(11,080		)	(127,200		)	(120,145		)	(8,107		)	(128,252		)
Loss before equity in income of partnerships and gain on sale interest in non operating real estate	(16,063		)	2,083			(13,980		)	(10,757		)	2,402			(8,355		)
Equity in income of partnerships	2,083			(2,083		)	—			2,402			(2,402		)	—
Gain on sale of interest in non operating real estate	43			—			43			—			—			—
Net loss	(13,937		)	—			(13,937		)	(8,355		)	—			(8,355		)
Less: net loss attributed to noncontrolling interest	429			—			429			252			—			252
Net loss attributable to PREIT	(13,508		)	—			(13,508		)	(8,103		)	—			(8,103		)
Less: preferred share dividends	(3,962		)	—			(3,962		)	(3,962		)	—			(3,962		)
Net loss attributable to PREIT common shareholders	$	(17,470	)	$	—		$	(17,470	)	$	(12,065	)	$	—		$	(12,065	)


⁽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 $35 and $103 for the quarters ended March 31, 2015 and 2014, respectively.

Pennsylvania Real Estate Investment Trust

Statement of Net Operating Income ⁽¹⁾

(in thousands)



	Quarter Ended March 31, 2015												Quarter Ended March 31, 2014
SAME STORE RETAIL/NEW/OTHER	Same			New			Other			Total			Same			New			Other			Total
Real estate revenue:
Base rent	$	69,500		$	354		$	3,155		$	73,009		$	68,873		$	279		$	9,064		$	78,216
Expense reimbursements	34,234			23			1,273			35,530			34,175			34			3,431			37,640
Percentage rent	588			—			21			609			626			—			16			642
Lease termination revenue	382			—			59			441			112			—			—			112
Other real estate revenue	2,170			1			186			2,357			2,008			1			499			2,508
TOTAL REAL ESTATE REVENUE	106,874			378			4,694			111,946			105,794			314			13,010			119,118
Property operating expenses:
CAM and real estate taxes	(35,447		)	(156		)	(2,093		)	(37,696		)	(36,501		)	(96		)	(5,530		)	(42,127		)
Utilities	(5,333		)	(5		)	(309		)	(5,647		)	(7,252		)	—			(1,212		)	(8,464		)
Other property operating expenses	(4,371		)	(63		)	(576		)	(5,010		)	(3,819		)	(4		)	(838		)	(4,661		)
TOTAL PREOPERTY OPERATING EXPENSES	(45,151		)	(224		)	(2,978		)	(48,353		)	(47,572		)	(100		)	(7,580		)	(55,252		)
NET OPERATING INCOME	$	61,723		$	154		$	1,716		$	63,593		$	58,222		$	214		$	5,430		$	63,866

	2015			% change 2014 to 2015			2014
Same Store NOI variance
Same Store NOI ⁽²⁾	$	61,723		6.0		%	$	58,222
Same Store NOI excluding lease terminations	$	61,341		5.6		%	$	58,110


⁽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 23.

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share

(in thousands, except per share amounts)



	Quarter Ended March 31,
	2015			2014
Net loss	$	(13,937	)	$	(8,355	)
Noncontrolling interest	429			252
Dividends on preferred shares	(3,962		)	(3,962		)
Dividends on unvested restricted shares	(86		)	(113		)
Net loss used to calculate loss per share - basic and diluted	$	(17,556	)	$	(12,178	)

Basic and diluted loss per share	$	(0.26	)	$	(0.18	)

Weighted average common shares outstanding	68,566			67,944
Weighted average unvested restricted shares	—			—
Weighted average shares outstanding - basic	68,566			67,944
Weighted average effect of common share equivalents ⁽¹⁾	—			—
Total weighted average shares outstanding - diluted	68,566			67,944


⁽¹⁾	The Company had net losses used to calculate earnings per share for all periods presented. Therefore, the effect of common share equivalents of 432 and 403 for the quarters ended March 31, 2015 and 2014, 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 March 31, 2015										Quarter Ended March 31, 2014
	Consolidated			PREIT’s share of unconsolidated partnerships			Total				Consolidated			PREIT’s share of unconsolidated partnerships			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue	$	98,783		$	13,163		$	111,946			$	108,609		$	10,509		$	119,118
Property operating expenses	(43,152		)	(5,201		)	(48,353		)		(51,717		)	(3,535		)	(55,252		)
NET OPERATING INCOME	55,631			7,962			63,593				56,892			6,974			63,866
General and administrative expenses	(8,943		)	—			(8,943		)		(9,077		)	—			(9,077		)
Other income	1,274			—			1,274				779			—			779
Acquisition costs and other expenses	(4,451		)	(27		)	(4,478		)		(1,646		)	—			(1,646		)
Interest expense, net	(20,145		)	(2,640		)	(22,785		)		(20,170		)	(2,730		)	(22,900		)
Depreciation on non real estate assets	(378		)	—			(378		)		(445		)	—			(445		)
Gain on sale of interest in non operating real estate	43			—			43				—			—			—
Preferred share dividends	(3,962		)	—			(3,962		)		(3,962		)	—			(3,962		)
FFO	19,069			5,295			24,364				22,371			4,244			26,615
Depreciation on real estate assets	(32,811		)	(3,212		)	(36,023		)		(35,790		)	(1,842		)	(37,632		)
Equity in income of partnerships	2,083			(2,083		)	—				2,402			(2,402		)	—
Impairment of assets	(6,240		)	—			(6,240		)		(1,300		)	—			(1,300		)
Preferred share dividends	3,962			—			3,962				3,962			—			3,962
Net loss	$	(13,937	)	$	—		$	(13,937	)		$	(8,355	)	$	—		$	(8,355	)
FFO	$	19,069		$	5,295		$	24,364			$	22,371		$	4,244		$	26,615
Acquisition costs	3,330			—			3,330				1,387			—			1,387
Loss on hedge ineffectiveness	512			—			512				—			—			—
FFO AS ADJUSTED	$	22,911		$	5,295		$	28,206			$	23,758		$	4,244		$	28,002
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	22,911		$	5,295		$	28,206			$	23,758		$	4,244		$	28,002
Adjustments:
Straight line rent	(272		)	(145		)	(417		)		(518		)	(44		)	(562		)
Recurring capital expenditures	(1,081		)	(27		)	(1,108		)		(492		)	(10		)	(502		)
Tenant allowances	(3,784		)	(107		)	(3,891		)		(2,468		)	(40		)	(2,508		)
Capitalized leasing costs	(1,655		)	—			(1,655		)		(1,420		)	—			(1,420		)
Amortization of above- and below-market lease intangibles	(80		)	(6		)	(86		)		(338		)	(21		)	(359		)
FAD	$	16,039		$	5,010		$	21,049			$	18,522		$	4,129		$	22,651
Weighted average number of shares outstanding							68,566										67,944
Weighted average effect of full conversion of OP Units							2,192										2,129
Effect of common share equivalents							432										403
Total weighted average shares outstanding, including OP Units							71,190										70,476
FFO PER DILUTED SHARE AND OP UNIT							$	0.34									$	0.38
FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED							$	0.40									$	0.40
FAD PER DILUTED SHARE AND OP UNIT							$	0.30									$	0.32
DIVIDEND PER COMMON SHARE							$	0.21									$	0.20
PAYOUT RATIOS
Payout ratio of FFO							45.4		%	⁽¹⁾							42.7		%	⁽²⁾
Payout ratio of FFO as adjusted							41.4		%	⁽¹⁾							40.4		%	⁽²⁾
Payout ratio of FAD							76.8		%	⁽¹⁾							67.9		%	⁽²⁾


⁽¹⁾	Twelve months ended March 31, 2015.


⁽²⁾	Twelve months ended March 31, 2014.

Pennsylvania Real Estate Investment Trust

2015 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	23	43,481	N/A		$	70.36	$	70.36	N/A		$	5.73
Total/Average	23	43,481	N/A		$	70.36	$	70.36	N/A		$	5.73

New Leases - non anchor tenants 10k sf or greater: ⁽³⁾
1st Quarter	1	13,000	N/A		$	22.49	$	22.49	N/A		$	12.64
Total/Average	1	13,000	N/A		$	22.49	$	22.49	N/A		$	12.64

Renewals - non anchor tenants less than 10k sf : ⁽⁴⁾
1st Quarter	60	137,227	$	45.25	$	45.95	$	0.70	1.5	%	$	0.18
Total/Average	60	137,227	$	45.25	$	45.95	$	0.70	1.5	%	$	0.18

Renewals - non anchor tenants 10k sf or greater: ⁽⁴⁾
1st Quarter	1	12,608	$	13.00	$	13.50	$	0.50	3.8	%	$	—
Total/Average	1	12,608	$	13.00	$	13.50	$	0.50	3.8	%	$	—


⁽¹⁾	New rent is the initial amount payable upon rent commencement. In certain cases, a lower rent may be payable until certain conditions in the lease are satisfied.


⁽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 expansions and lease extensions.

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages



	March 31, 2015 ⁽¹⁾											March 31, 2014												Change
	% Rolling 12 Mo. NOI		Avg. Comp Sales		Avg. Gross Rent⁽²⁾⁽³⁾	Occ. Cost		Occupancy				% Rolling 12 Mo. NOI		Avg. Comp Sales		Avg. Gross Rent⁽²⁾⁽³⁾		Occ. Cost		Occupancy				Avg. Comp Sales		Avg. Gross Rent⁽²⁾⁽³⁾		Occ. Cost		Occupancy
								Total		Non-Anchor										Total		Non-Anchor								Total		Non-Anchor
								Total		Non-Anchor										Total		Non-Anchor								Total		Non-Anchor
Premier Malls	34.7	%	$	563	$70.34	12.9	%	96.1	%	94.1	%	33.0	%	$	522	$	67.88	13.4	%	96.9	%	95.4	%	7.9	%	3.6	%	(0.5	)%	(0.8	)%	(1.3	)%
Core Growth Malls	45.5	%	$	370	$44.51	12.9	%	95.1	%	90.4	%	42.5	%	$	352	$	42.50	13.0	%	95.6	%	91.5	%	5.1	%	4.7	%	(0.1	)%	(0.5	)%	(1.1	)%
Opportunistic Malls	5.0	%	$	279	$27.94	11.3	%	89.3	%	86.2	%	5.4	%	$	258	$	27.89	12.0	%	89.0	%	86.4	%	8.1	%	0.2	%	(0.7	)%	0.3	%	(0.2	)%
Non Core Malls	5.8	%	$	293	$28.55	10.9	%	93.8	%	86.6	%	5.5	%	$	264	$	27.79	11.3	%	93.2	%	85.2	%	11.0	%	2.7	%	(0.4	)%	0.6	%	1.4	%
Total Same Store Malls	91.0	%	$	414	$48.31	12.7	%	94.5	%	90.5	%	86.4	%	$	385	$	46.51	13.0	%	94.9	%	91.2	%	7.5	%	3.9	%	(0.3	)%	(0.4	)%	(0.7	)%
Non Same Store Mall ⁽⁴⁾	3.4	%	N/A		N/A	N/A		N/A		N/A		5.1	%	$	359	$	48.93	14.6	%	76.8	%	77.8	%	N/A		N/A		N/A		N/A		N/A
Total Malls	94.4	%	$	414	$48.31	12.7	%	94.5	%	90.5	%	91.5	%	$	384	$	46.58	13.1	%	93.6	%	90.7	%	7.8	%	3.7	%	(0.4	)%	0.9	%	(0.2	)%
Other Retail Properties	4.1	%	N/A		$19.04	N/A		99.3	%	99.2	%	3.7	%	N/A		$	19.03	N/A		96.0	%	95.2	%	N/A		0.1	%	N/A		3.3	%	4.0	%
Total Retail Properties	98.5	%	N/A		$43.20	N/A		94.8	%	91.3	%	95.2	%	N/A		$	42.22	N/A		93.8	%	91.1	%	N/A		2.3	%	N/A		1.0	%	0.2	%
Sold Properties⁽⁵⁾	1.1	%	N/A		N/A	N/A		N/A		N/A		2.8	%	$242		$	22.58	N/A		89.2	%	83.5	%	N/A		N/A		N/A		N/A		N/A
Other Properties	0.4	%	N/A		N/A	N/A		N/A		N/A		2.0	%	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Total Portfolio	100.0	%	$	414	$43.20			94.8	%	91.3	%	100.0	%	$	377	$	40.79			93.4	%	90.6	%	9.8	%	5.9	%			1.4	%	0.7	%


⁽¹⁾	Operating metrics for Springfield Town Center are excluded because the property was acquired on the last day of the quarter.


⁽²⁾	Average gross rent for malls includes all non-anchor space owned by the Company and leased to tenants that occupy individual spaces of 10,000 square feet or less. Average gross rent for other retail properties includes all non-anchor space owned by the Company regardless of size.


⁽³⁾	Average gross rent for mall tenants greater than 10,000 sf was $18.89 per square foot as of March 31, 2015 and $18.05 per square foot as of March 31, 2014.


⁽⁴⁾	Operating metrics for The Gallery as of March 31, 2015 are excluded because the property is under redevelopment.


⁽⁵⁾	Sold properties include Nittany Mall, North Hanover Mall, South Mall, and Whitehall Mall. Average comp sales information as of March 31, 2014 includes Nittany Mall, North Hanover Mall, and South Mall.

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot



	March 31, 2015						March 31, 2014						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	$	648	93.3	%	92.0	%	$	623	94.3	%	93.1	%	4.0	%	(1.0	)%	(1.1	)%
Willow Grove Park	576		96.8	%	93.5	%	424		97.4	%	94.6	%	35.8	%	(0.6	)%	(1.1	)%
Lehigh Valley Mall	563		95.7	%	93.0	%	533		97.7	%	96.3	%	5.6	%	(2.0	)%	(3.3	)%
Woodland Mall	557		96.7	%	96.7	%	524		98.0	%	98.0	%	6.3	%	(1.3	)%	(1.3	)%
Jacksonville Mall	462		97.6	%	95.3	%	492		97.1	%	94.3	%	(6.1	)%	0.5	%	1.0	%
Dartmouth Mall	419		98.2	%	97.1	%	428		98.0	%	96.7	%	(2.1	)%	0.2	%	0.4	%
Premier Malls Subtotal	$	563	96.1	%	94.1	%	$	522	96.9	%	95.4	%	7.9	%	(0.8	)%	(1.3	)%
Core Growth Malls
The Mall at Prince Georges	$	447	99.1	%	98.1	%	$	396	98.6	%	97.2	%	12.9	%	0.5	%	0.9	%
Viewmont Mall	409		97.2	%	92.8	%	387		95.4	%	88.1	%	5.7	%	1.8	%	4.7	%
Valley Mall	406		93.9	%	89.5	%	358		95.9	%	92.9	%	13.4	%	(2.0	)%	(3.4	)%
Patrick Henry Mall	405		92.0	%	88.4	%	388		93.3	%	90.2	%	4.4	%	(1.3	)%	(1.8	)%
Springfield Mall	403		93.2	%	93.2	%	391		94.8	%	94.8	%	3.1	%	(1.6	)%	(1.6	)%
Valley View Mall	398		94.6	%	92.8	%	371		91.6	%	88.4	%	7.3	%	3.0	%	4.4	%
Wyoming Valley Mall	381		95.7	%	87.7	%	393		96.4	%	89.6	%	(3.1	)%	(0.7	)%	(1.9	)%
Capital City Mall	380		97.7	%	95.7	%	374		96.8	%	94.6	%	1.6	%	0.9	%	1.1	%
Francis Scott Key Mall	367		96.9	%	95.1	%	351		97.8	%	96.4	%	4.6	%	(0.9	)%	(1.3	)%
Magnolia Mall	360		99.3	%	98.4	%	346		98.4	%	96.4	%	4.0	%	0.9	%	2.0	%
Moorestown Mall	360		91.7	%	81.3	%	349		89.2	%	76.1	%	3.2	%	2.5	%	5.2	%
Crossroads Mall	333		96.2	%	91.7	%	332		99.2	%	98.4	%	0.3	%	(3.0	)%	(6.7	)%
Exton Square Mall	329		93.0	%	84.6	%	304		94.7	%	88.4	%	8.2	%	(1.7	)%	(3.8	)%
Cumberland Mall	325		90.5	%	84.3	%	302		94.2	%	90.5	%	7.6	%	(3.7	)%	(6.2	)%
Plymouth Meeting Mall	319		92.9	%	89.2	%	326		91.6	%	87.2	%	(2.1	)%	1.3	%	2.0	%
Logan Valley Mall	319		94.5	%	86.9	%	299		98.0	%	95.1	%	6.7	%	(3.5	)%	(8.2	)%
Gadsden Mall	297		96.5	%	91.4	%	291		98.2	%	95.6	%	2.1	%	(1.7	)%	(4.2	)%
Core Growth Malls Subtotal	$	370	95.1	%	90.4	%	$	352	95.6	%	91.5	%	5.1	%	(0.5	)%	(1.1	)%
Opportunistic Malls
Wiregrass Commons Mall	$	291	88.7	%	83.5	%	$	266	92.1	%	88.5	%	9.4	%	(3.4	)%	(5.0	)%
Beaver Valley Mall	289		96.4	%	92.3	%	267		95.1	%	89.5	%	8.2	%	1.3	%	2.8	%
New River Valley Mall	281		85.0	%	92.2	%	269		85.7	%	96.5	%	4.5	%	(0.7	)%	(4.3	)%
Voorhees Town Center	248		74.1	%	73.7	%	211		72.2	%	71.8	%	17.5	%	1.9	%	1.9	%
Opportunistic Malls Subtotal	$	279	89.3	%	86.2	%	$	258	89.0	%	86.4	%	8.1	%	0.3	%	(0.2	)%

Malls Excluding Non Core and Redevelopment Subtotal	$	424	94.6	%	90.9	%	$	397	95.1	%	91.9	%	6.8	%	(0.5	)%	(1.0	)%
Non Core Malls
Palmer Park Mall	$	331	93.2	%	78.3	%	$	298	95.2	%	84.8	%	11.1	%	(2.0	)%	(6.5	)%
Washington Crown Center	328		94.6	%	89.9	%	272		84.5	%	71.3	%	20.6	%	10.1	%	18.6	%
Uniontown Mall	283		93.4	%	85.1	%	263		94.8	%	88.2	%	7.6	%	(1.4	)%	(3.1	)%
Lycoming Mall	264		94.1	%	88.4	%	242		97.0	%	94.1	%	9.1	%	(2.9	)%	(5.7	)%
Non Core Malls Subtotal	$	293	93.8	%	86.6	%	$	264	93.2	%	85.2	%	11.0	%	0.6	%	1.4	%
Same Store Malls weighted average	$	414	94.5	%	90.5	%	$	385	94.9	%	91.2	%	7.5	%	(0.4	)%	(0.7	)%
Non Same Store Redevelopment Mall
The Gallery at Market East ⁽²⁾	N/A		N/A		N/A		$	359	76.8	%	77.8	%	N/A		N/A		N/A
Total Continuing Malls weighted average	$	414	94.5	%	90.5	%	$	384	93.6	%	90.7	%	7.8	%	0.9	%	(0.2	)%
Sold Properties	N/A		N/A		N/A		$	242	87.7	%	82.9	%	N/A		N/A		N/A
Total Reported weighted average	$	414	94.5	%	90.5	%	$	377	93.3	%	90.3	%	9.8	%	1.2	%	0.2	%


⁽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.


⁽²⁾	Average comp sales and total and non anchor occupancy for The Gallery as of March 31, 2015 are excluded because the property is under redevelopment.

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants



Tenant	Brands	Total Number of Locations ⁽¹⁾	Percentage of Annualized Gross Rent⁽²⁾
L Brands, Inc.	Bath & Body Works, Henri Bendel, Pink, Victoria's Secret	64	3.7	%
Signet Jewelers Limited	J.B. Robinson Jewelers, Kay Jewelers, LeRoy's, Marks and Morgan Jewelers, Piercing Pagoda, Plumb Gold, Shaw's Jewelers, Silver & Gold Connection, Totally Pagoda, Zale's Jewelers	96	3.3	%
Foot Locker, Inc.	Champs, Foot Locker, Footaction, Kids Foot Locker, Lady Foot Locker, Nike Yardline	55	3.0	%
Gap, Inc.	Banana Republic, Gap/Gap Kids/Baby Gap, Old Navy	34	2.9	%
J.C. Penney Company, Inc. ^{(3) (4)}	JC Penney	25	2.7	%
American Eagle Outfitters, Inc.	Aerie, American Eagle Outfitters	33	2.6	%
Sears Holding Corporation	Kmart, Sears	21	1.7	%
Dick's Sporting Goods, Inc.	Dick's Sporting Goods	10	1.5	%
Genesco, Inc.	Hat Shack, Hat World, Johnston & Murphy, Journey's, Journey's Kidz, Lids, Lids Locker Room, Shi by Journey's, Underground by Journey's	56	1.5	%
Ascena Retail Group, Inc.	Dress Barn, Justice, Lane Bryant, Maurices	37	1.5	%
Macy's, Inc.	Bloomingdale's, Macy's	23	1.5	%
Luxottica Group S.p.A.	Lenscrafters, Pearle Vision, Sunglass Hut/Watch Station	41	1.5	%
Abercrombie & Fitch Co.	abercrombie, Abercrombie & Fitch, Hollister Co.	17	1.3	%
Boscov's Department Store	Boscov's	8	1.3	%
Regal Entertainment Group	Regal Cinemas	4	1.2	%
The Children's Place Retail Stores, Inc.	The Children's Place	26	1.2	%
Forever 21, Inc.	Forever 21	9	1.1	%
The Finish Line, Inc.	Finish Line	22	1.1	%
Shoe Show, Inc.	The Shoe Dept/Encore	23	1.1	%
Advent CR Holdings, Inc.	Charlotte Russe	16	1.1	%
Total Top 20 Tenants		620	36.9	%
Total Leases		2,485	100.0	%


⁽¹⁾	Excludes tenants from The Gallery and Springfield Town Center.


⁽²⁾	Includes PREIT’s proportionate share of tenant gross 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 closed in April 2015. The tenant is obligated to pay rent through July 2015.

Pennsylvania Real Estate Investment Trust

Lease Expirations as of March 31, 2015

(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
Holdover	224	657,168	6.4	%	$	22,216	$	21,394	6.6	%	$	33.81
2015	208	516,999	5.1	%	21,791		20,674		6.3	%	42.15
2016	419	1,527,466	14.9	%	55,854		51,027		15.7	%	36.57
2017	380	1,204,502	11.8	%	46,666		42,850		13.2	%	38.74
2018	254	1,160,424	11.4	%	41,013		36,765		11.3	%	35.34
2019	223	1,017,481	9.9	%	34,707		31,516		9.7	%	34.11
2020	123	995,929	9.7	%	25,297		22,218		6.8	%	25.40
2021	112	482,888	4.7	%	17,509		15,619		4.8	%	36.26
2022	118	548,135	5.4	%	20,883		18,737		5.7	%	38.10
2023	137	795,121	7.8	%	27,745		24,744		7.6	%	34.89
2024	126	574,585	5.6	%	23,542		21,833		6.7	%	40.97
Thereafter	82	747,799	7.3	%	19,251		18,201		5.6	%	25.74
Total/Average	2,406	10,228,497	100.0	%	$	356,474	$	325,578	100.0	%	$	34.85



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	8.6	%	$	3,387	$	3,387	8.9	%	$	4.52
2016	16	1,732,683	19.8	%	6,728		6,728		17.7	%	3.88
2017	9	1,319,105	15.1	%	4,589		4,238		11.1	%	3.48
2018	11	1,163,222	13.3	%	5,113		5,113		13.4	%	4.40
2019	18	1,857,420	21.3	%	7,402		6,739		17.7	%	3.99
2020 ⁽⁶⁾	7	801,161	9.2	%	3,657		3,657		9.6	%	4.56
2021	2	126,805	1.5	%	2,364		1,182		3.1	%	18.64
2022	4	521,173	6.0	%	2,647		2,647		7.0	%	5.08
2023	—	—	—	%	—		—		—	%	N/A
2024	—	—	—	%	—		—		—	%	N/A
Thereafter	5	457,134	5.2	%	5,009		4,359		11.5	%	10.96
Total/Average	79	8,728,740	100.0	%	$	40,896	$	38,050	100.0	%	$	4.69


⁽¹⁾	Only includes owned space. Excludes The Gallery and Springfield Town Center.


⁽²⁾	Does not include tenants occupying space under license agreements with initial terms of less than one year. The GLA of these tenants is 380,326 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 closed in April 2015. The tenant is obligated to pay rent through July 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 March 31, 2015

(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	405	55	1,306
Dartmouth Mall	MA	100%	1997	1971/2000	—	—	100	108	—	—	—	208	140	—	—	—	—	—	140	142	171	9	670
Jacksonville Mall	NC	100%	2003	1981/2008	—	—	52	117	—	—	73	242	—	—	—	—	—	—	—	113	128	12	495
Lehigh Valley Mall	PA	50%	1973	1977/2007	—	212	—	—	165	—	—	377	—	207	—	—	—	—	207	180	365	41	1,170
Willow Grove Park	PA	100%	2000-03	1982/2001	40	225	125	—	—	—	—	390	237	—	176	—	—	—	413	87	264	25	1,179
Woodland Mall	MI	100%	2005	1968/1998	—	—	—	—	—	—	—	—	157	255	313	—	—	—	725	167	263	15	1,170
Total Premier Malls					178	437	277	225	165	—	73	1,355	839	636	489	—	—	—	1,964	918	1,596	157	5,990
Core Growth Malls
Capital City Mall	PA	100%	2003	1974/2005	—	—	103	101	—	—	—	204	120	—	—	—	—	—	120	35	199	10	568
Crossroads Mall	WV	100%	2003	1981	—	—	90	87	—	—	78	255	—	—	—	—	—	—	—	74	122	18	469
Cumberland Mall ⁽¹⁾	NJ	100%	2005	1973/2003	—	—	51	—	—	—	213	264	—	—	—	155	—	118	273	200	141	63	941
Exton Square Mall ⁽²⁾	PA	100%	2003	1973/2000	—	—	118	144	178	—	—	440	181	—	96	—	—	—	277	59	255	57	1,088
Francis Scott Key Mall	MD	100%	2003	1978/1991	—	—	101	121	—	—	—	222	139	—	—	—	—	—	139	181	194	19	755
Gadsden Mall	AL	100%	2005	1974/1990	—	—	88	112	—	—	101	301	—	—	—	—	—	—	—	96	92	18	507
Logan Valley Mall	PA	100%	2003	1960/1997	—	150	146	159	—	—	—	455	—	—	—	—	—	—	—	82	204	42	783
Magnolia Mall	SC	100%	1997	1979/2007	—	—	104	91	—	—	148	343	—	—	—	—	—	—	—	99	172	5	619
Moorestown Mall	NJ	100%	2003	1963/2008	—	—	—	206	203	—	—	409	200	—	—	—	—	121	321	88	180	62	1,060
Patrick Henry Mall	VA	100%	2003	1988/2005	—	—	85	—	—	—	50	135	140	—	—	—	—	145	285	38	225	34	717
Plymouth Meeting Mall	PA	100%	2003	1966/2009	—	—	—	—	189	—	65	254	215	—	—	—	—	—	215	198	229	52	948
The Mall at Prince Georges	MD	100%	1998	1959/2004	—	196	149	—	—	—	135	480	—	—	—	—	—	—	—	155	274	8	917
Springfield Mall	PA	50%	2005	1974/1997	—	—	—	—	—	—	—	—	192	—	—	—	—	196	388	10	198	16	612
Valley Mall	MD	100%	2003	1974/1999	—	—	157	—	—	123	—	280	120	—	123	—	—	—	243	127	221	41	912
Valley View Mall	WI	100%	2003	1980/2001	—	—	96	—	—	—	—	96	100	—	113	—	42	—	255	98	160	20	629
Viewmont Mall	PA	100%	2003	1968/2006	—	—	193	193	—	—	—	386	140	—	—	—	—	—	140	75	149	17	767
Wyoming Valley Mall	PA	100%	2003	1971/2006	—	146	173	118	—	155	—	592	—	—	—	—	—	—	—	101	178	39	910
Core Growth Malls					—	492	1,654	1,332	570	278	790	5,116	1,547	—	332	155	42	580	2,656	1,716	3,193	521	13,202

(continued on next page)

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2015 (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	206	197	34	1,153
New River Valley Mall	VA	100%		2003	1988/2007	—	—	50	—	—	—	89	139	—	—	—	—	—	—	—	135	120	70	464
Voorhees Town Center	NJ	100%		2003	1970/2007	—	—	—	—	4	—	—	4	224	—	—	173	—	24	421	73	150	80	728
Wiregrass Commons Mall	AL	100%		2003	1986/2008	—	—	—	—	—	—	95	95	—	84	—	—	—	248	332	10	164	34	635
Opportunistic Malls						—	—	176	191	198	—	184	749	429	84	—	173	—	272	958	424	631	218	2,980
Non Core Malls
Lycoming Mall	PA	100%		2003	1978/2007	—	—	62	130	—	60	81	333	120	—	—	—	—	—	120	162	151	41	807
Palmer Park Mall	PA	100%		1972/2003	1972/1998	—	—	—	—	192	122	—	314	—	—	—	—	—	—	—	—	113	31	458
Uniontown Mall	PA	100%		2003	1972/1990	—	—	63	100	—	80	148	391	—	—	—	—	—	—	—	102	162	45	700
Washington Crown Center	PA	100%		2003	1969/1999	—	—	—	83	—	78	84	245	140	—	—	—	—	—	140	141	118	29	673
Non Core Malls						—	—	125	313	192	340	313	1,283	260	—	—	—	—	—	260	405	544	146	2,638
Other Retail Properties
Street Level Retail (2 properties)	PA	100%		2014	1910/1960	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	38	27	9	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
Other Retail Properties						—	—	—	—	—	—	225	225	—	—	—	—	—	894	894	1,004	174	10	2,307
Non Same Store Property
Springfield Town Center ⁽³⁾	VA	100	%	2015	1974/2015																			1,365
Portfolio Totals						178	929	2,232	2,061	1,125	618	1,585	8,728	3,075	720	821	328	42	1,746	6,732	4,467	6,138	1,052	28,482


⁽¹⁾	JCPenney closed this landlord owned store in April 2015. The tenant is obligated to pay rent through July 2015.


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


⁽³⁾	GLA detail for Springfield Town Center is not presented because the property was acquired on the last day of the quarter.

Pennsylvania Real Estate Investment Trust

Department Store Lease Expirations as of March 31, 2015



	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 March 31, 2015 (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	—

Other Retail Properties
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 closed this landlord owned store at this property in April 2015. The tenant is obligated to pay rent through July 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)



	March 31, 2015									December 31, 2014
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,676,010		$	332,409		$	4,008,419		$	3,216,231		$	332,950		$	3,549,181
Construction in progress	59,054			24,368			83,422			60,452			16,578			77,030
Land held for development	8,721			—			8,721			8,721			—			8,721
Total investments in real estate	3,743,785			356,777			4,100,562			3,285,404			349,528			3,634,932
Accumulated depreciation	(1,082,959		)	(100,127		)	(1,183,086		)	(1,061,051		)	(97,786		)	(1,158,837		)
Net investments in real estate	2,660,826			256,650			2,917,476			2,224,353			251,742			2,476,095
Investments in partnerships, at equity	147,847			(147,847		)	—			140,882			(140,882		)	—
Other assets:
Cash and cash equivalents	37,480			10,608			48,088			40,433			7,288			47,721
Rent and other receivables ⁽²⁾	37,500			3,654			41,154			40,566			3,970			44,536
Intangible assets, net	24,294			5,654			29,948			6,452			6,071			12,523
Deferred costs and other assets, net	87,653			11,140			98,793			87,017			7,252			94,269
Total assets	$	2,995,600		$	139,859		$	3,135,459		$	2,539,703		$	135,441		$	2,675,144
LIABILITIES AND EQUITY
Liabilities:
Mortgage loans	$	1,409,049		$	192,674		$	1,601,723		$	1,407,947		$	190,310		$	1,598,257
Term Loans	250,000			—			250,000			130,000			—			130,000
Revolving Facility	210,000			—			210,000			—			—			—
Tenants’ deposits and deferred rent	16,833			3,960			20,793			15,541			4,078			19,619
Distributions in excess of partnership investments	65,746			(65,746		)	—			65,956			(65,956		)	—
Fair value of derivative instruments	4,377			—			4,377			2,490			—			2,490
Other liabilities	86,916			8,971			95,887			73,032			7,009			80,041
Total liabilities	2,042,921			139,859			2,182,780			1,694,966			135,441			1,830,407
Equity:
Total equity	952,679			—			952,679			844,737			—			844,737
Total liabilities and equity	$	2,995,600		$	139,859		$	3,135,459		$	2,539,703		$	135,441		$	2,675,144


⁽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 $27.5 million ($24.7 million consolidated, $2.8 million unconsolidated) as of March 31, 2015 and $27.8 million ($23.7 million consolidated, $4.1 million unconsolidated) as of December 31, 2014.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾

(in thousands)



	March 31, 2015								December 31, 2014
	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	$	74,467	$	—	$	31,275	$	43,192	$	74,120	$	—	$	30,465	$	43,655
Capital City Mall	99,674		665		35,275		65,064		99,665		152		34,419		65,398
Cherry Hill Mall	471,025		—		168,937		302,088		470,493		—		163,178		307,315
Crossroads Mall	48,995		195		15,588		33,602		48,872		195		15,098		33,969
Cumberland Mall	67,514		396		17,965		49,945		67,422		375		17,412		50,385
Dartmouth Mall	64,304		—		32,762		31,542		64,544		—		32,540		32,004
Exton Square Mall	158,642		—		42,577		116,065		158,622		1		41,473		117,150
Francis Scott Key Mall	90,371		251		29,474		61,148		90,309		1,681		28,480		63,510
Gadsden Mall	64,305		—		17,034		47,271		64,301		—		16,483		47,818
Jacksonville Mall	84,181		86		27,883		56,384		84,173		2		27,148		57,027
Logan Valley Mall	101,139		—		32,891		68,248		100,887		—		32,222		68,665
Lycoming Mall	79,249		—		27,238		52,011		79,240		—		26,547		52,693
Magnolia Mall	90,727		—		37,871		52,856		90,725		—		37,033		53,692
Moorestown Mall	131,980		2,362		40,474		93,868		131,353		2,147		39,061		94,439
New River Valley Mall	59,416		—		28,285		31,131		59,340		—		27,497		31,843
Palmer Park Mall	34,718		—		15,192		19,526		34,717		—		15,003		19,714
Patrick Henry Mall	146,454		—		55,310		91,144		146,434		—		53,642		92,792
Plymouth Meeting Mall	171,546		—		56,050		115,496		169,981		—		54,037		115,944
The Mall at Prince Georges	103,766		—		46,686		57,080		103,738		35		45,879		57,894
Springfield Town Center	468,612		—		—		468,612		—		—		—		—
Uniontown Mall	29,155		67		7,506		21,716		43,751		—		15,973		27,778
Valley Mall	100,808		—		32,986		67,822		100,682		177		32,217		68,642
Valley View Mall	78,816		126		21,066		57,876		78,811		1,032		20,426		59,417
Viewmont Mall	99,218		—		30,711		68,507		98,404		—		29,834		68,570
Voorhees Town Center	83,594		563		29,358		54,799		83,501		589		28,152		55,938
Washington Crown Center	51,628		—		17,207		34,421		51,562		30		16,747		34,845
Willow Grove Park	236,631		—		75,265		161,366		236,236		—		73,260		162,976
Wiregrass Commons Mall	56,772		—		17,507		39,265		56,539		—		16,939		39,600
Woodland Mall	193,288		—		52,619		140,669		192,976		—		51,048		141,928
Wyoming Valley Mall	112,185		—		38,894		73,291		112,074		—		37,980		74,094
Total Consolidated Malls	3,653,180		4,711		1,081,886		2,576,005		3,193,472		6,416		1,060,193		2,139,695
Unconsolidated Malls
The Gallery at Market East	126,363		11,297		16,415		121,245		126,515		8,965		15,245		120,235
Lehigh Valley Mall	46,021		762		23,765		23,018		46,423		418		23,750		23,091
Springfield Mall	57,031		9		17,080		39,960		57,017		9		16,670		40,356
Total Unconsolidated Malls	229,415		12,068		57,260		184,223		229,955		9,392		55,665		183,682
TOTAL MALLS	$	3,882,595	$	16,779	$	1,139,146	$	2,760,228	$	3,423,427	$	15,808	$	1,115,858	$	2,323,377

(continued on next page)

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾ (continued)

(in thousands)



	March 31, 2015								December 31, 2014
	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 Other Retail Properties
Monroe Marketplace ⁽²⁾	$	1,515	$	245	$	67	$	1,693	$	1,515	$	—	$	60	$	1,455
Pitney Road Plaza ⁽³⁾	1,088		3		24		1,067		1,017		20		13		1,024
Sunrise Plaza ⁽⁴⁾	—		17		—		17		—		—		—		—
Street Level Retail (2 Properties)	20,227		47		982		19,292		20,227		—		785		19,442
Total Consolidated Other Retail Properties	22,830		312		1,073		22,069		22,759		20		858		21,921
Unconsolidated Other Retail Properties
Metroplex Shopping Center	42,919		—		22,551		20,368		42,919		—		22,125		20,794
The Court at Oxford Valley	28,242		—		10,687		17,555		28,242		—		10,532		17,710
Red Rose Commons	13,617		—		5,296		8,321		13,617		1		5,221		8,397
Springfield Park	8,518		—		2,280		6,238		8,519		—		2,216		6,303
Total Unconsolidated Other Retail Properties	93,296		—		40,814		52,482		93,297		1		40,094		53,204
TOTAL OTHER RETAIL PROPERTIES	$	116,126	$	312	$	41,887	$	74,551	$	116,056	$	21	$	40,952	$	75,125
Consolidated Properties Under Development
Springhills	$	—	$	19,243	$	—	$	19,243	$	—	$	19,230	$	—	$	19,230
White Clay Point	—		34,788		—		34,788		—		34,786		—		34,786
Total Consolidated Properties Under Development	—		54,031		—		54,031		—		54,016		—		54,016
Unconsolidated Properties Under Development
Gloucester Premium Outlets	3,458		11,516		—		14,974		3,458		6,401		—		9,859
Pavilion at Market East	6,240		784		2,053		4,971		6,240		784		2,027		4,997
Total Unconsolidated Properties Under Development	9,698		12,300		2,053		19,945		9,698		7,185		2,027		14,856
Other Properties
Land held for development - consolidated	8,721		—		—		8,721		8,721		—		—		8,721
Total Other Properties	8,721		—		—		8,721		8,721		—		—		8,721
TOTAL DEVELOPMENT AND OTHER PROPERTIES	$	18,419	$	66,331	$	2,053	$	82,697	$	18,419	$	61,201	$	2,027	$	77,593
TOTAL INVESTMENT IN REAL ESTATE	$	4,017,140	$	83,422	$	1,183,086	$	2,917,476	$	3,557,902	$	77,030	$	1,158,837	$	2,476,095
CONSOLIDATED PROPERTIES	$	3,684,731	$	59,054	$	1,082,959	$	2,660,826	$	3,224,952	$	60,452	$	1,061,051	$	2,224,353
UNCONSOLIDATED PROPERTIES	332,409		24,368		100,127		256,650		332,950		16,578		97,786		251,742
TOTAL INVESTMENT IN REAL ESTATE	$	4,017,140	$	83,422	$	1,183,086	$	2,917,476	$	3,557,902	$	77,030	$	1,158,837	$	2,476,095


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


⁽³⁾	Consists of one parcel remaining after the sale of the property in 2010.


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

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)



	Quarter Ended March 31, 2015
	Consolidated			Unconsolidated		Total
Redevelopment projects with incremental GLA and/or anchor replacement ⁽¹⁾	$	(973	)	$	5,349	$	4,376
New development projects	63			5,115		5,178
Renovation with no incremental GLA	810			—		810
Tenant allowances	3,784			107		3,891
Recurring capital expenditures:
CAM expenditures	587			22		609
Non-CAM expenditures	494			5		499
Total recurring capital expenditures	1,081			27		1,108
Total	$	4,765		$	10,598	$	15,363


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

Pennsylvania Real Estate Investment Trust

Debt Analysis as of March 31, 2015

(in thousands)



	Outstanding Debt
	Fixed Rate⁽¹⁾			% of Total Indebtedness		Variable Rate ⁽²⁾			% of Total Indebtedness		Total			% of Total Indebtedness
Consolidated mortgage loans payable	$	1,403,205		68.1	%	$	5,844		0.3	%	$	1,409,049		68.4	%
Unconsolidated mortgage loans payable	185,554			9.0	%	7,120			0.3	%	192,674			9.3	%
2014 Term Loans	155,000			7.5	%	95,000			4.6	%	250,000			12.1	%
2013 Revolving Facility	—			—	%	210,000			10.2	%	210,000			10.2	%
TOTAL OUTSTANDING DEBT	$	1,743,759		84.6	%	$	317,964		15.4	%	$	2,061,723		100.0	%
AVERAGE STATED INTEREST RATE	4.80		%			1.91		%			4.36		%


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



		Average Debt Balance
		Mortgage Debt			2013 Revolving Facility		2014 Term Loans		TOTAL
Beginning Balance	12/31/2014	$	1,598,257		$	—	$	130,000	$	1,728,257
Mortgage loan amortization		(5,586		)	—		—		(5,586		)
Francis Scott Key Mall mortgage loan draw		5,844			—		—		5,844
Gloucester Premium Outlet construction loan draw		3,208			—		—		3,208
2014 Term Loan borrowings		—			—		120,000		120,000
2013 Revolving Facility borrowing		—			210,000		—		210,000
Ending Balance	3/31/2015	$	1,601,723		$	210,000	$	250,000	$	2,061,723
Weighted Average Balance		$	1,598,851		$	2,333	$	131,333	$	1,732,518



	Debt Maturities⁽¹⁾
Year	Scheduled Amortization		Mortgage Balance at Maturity		2013 Revolving Facility		2014 Term Loans		Total Debt
2015	$	18,599	$	306,020	$	—	$	—	$	324,619
2016	15,635		219,480		210,000		—		445,115
2017	15,335		153,283		—		—		168,618
2018	15,115		150,987		—		—		166,102
2019	15,652		28,050		—		150,000		193,702
Thereafter	42,239		621,328		—		100,000		763,567
	$	122,575	$	1,479,148	$	210,000	$	250,000	$	2,061,723


⁽¹⁾	The weighted average period to mortgage loan maturity is 4.41 years, excluding extension options. Includes 100% of mortgage loan debt from consolidated properties and our share of mortgage loan debt from unconsolidated properties, based on our ownership percentage.



Weighted Average Mortgage Interest Rates
Year	Balance		Interest Rate
2015	310,626		5.69	%
2016	223,694		5.55	%
2017	153,510		5.45	%
2018	153,810		3.63	%
2019	28,050		4.38	%
Thereafter	732,033		4.61	%
Total	$	1,601,723	4.93	%

Pennsylvania Real Estate Investment Trust

Debt Schedule as of March 31, 2015

(in thousands)



	Debt ⁽¹⁾		Interest Rate		Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Fixed Rate Mortgage Loans
Springfield East ⁽²⁾	$	2,061	5.39	%	$	92	$	2,061	Jun 2015	Mar 2020
Springfield Park ⁽²⁾	2,419		5.39	%	107		2,419		Jun 2015	Mar 2020
Magnolia Mall ⁽³⁾	55,317		5.33	%	4,413		54,965		July 2015	July 2015
Patrick Henry Mall	84,421		6.34	%	7,743		83,210		Oct 2015	Oct 2015
Springfield Mall ⁽²⁾	31,154		4.77	%	2,118		30,741		Nov 2015	Nov 2015
Willow Grove Park	135,254		5.65	%	11,083		132,624		Dec 2015	Dec 2015
Valley Mall	80,508		5.49	%	5,014		78,996		Mar 2016	Mar 2016
Woodland Mall	143,186		5.58	%	10,760		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	33,730		3.72	%	3,001		30,907		Mar 2018	Mar 2018
New River Valley Mall ⁽²⁾⁽⁴⁾	28,050		4.38	%	1,229		28,050		Jan 2019	Jan 2019
Valley View Mall	30,074		5.95	%	2,290		27,161		July 2020	July 2020
Lehigh Valley Mall	65,418		5.88	%	4,972		58,519		July 2020	July 2020
Red Rose Commons	14,149		5.14	%	978		12,378		July 2021	July 2021
The Court at Oxford Valley	28,947		5.56	%	1,668		25,782		July 2021	July 2021
Capital City Mall	62,996		5.30	%	4,379		54,715		Mar 2022	Mar 2022
Cumberland Mall	48,953		4.40	%	3,433		38,157		Aug 2022	Aug 2022
Cherry Hill Mall	297,338		3.90	%	16,980		251,120		Sept 2022	Sept 2022
Dartmouth Mall	64,753		3.97	%	3,825		53,300		Apr 2023	Apr 2023
Metroplex Shopping Center	41,405		5.00	%	2,681		33,502		Oct 2023	Oct 2023
Wyoming Valley Mall ⁽⁵⁾	78,000		5.17	%	5,124		66,694		Dec 2023	Dec 2023
Total Fixed Rate Mortgage Loans	$	1,588,758	4.95	%	$	104,266	$	1,466,410
Variable Rate Mortgage Loans
Pavilion East Associates	$	3,510	2.94	%	$	253	$	3,283	Aug 2017	Aug 2017
Francis Scott Key Mall	5,844		2.77	%	162		5,844		Mar 2018	Mar 2018
Gloucester Premium Outlets	3,611		1.68	%	60		3,611		Jun 2018	Jun 2019
Total Variable Rate Mortgage Loans	$	12,965	2.51	%	$	475	$	12,738
Total Mortgage Loans	$	1,601,723	4.93	%	$	104,741	$	1,479,148
CONSOLIDATED MORTGAGE LOANS	$	1,409,049	4.89	%	$	91,812	$	1,306,852
UNCONSOLIDATED MORTGAGE LOANS	192,674		5.26	%	12,929		172,296
2014 5 YEAR TERM LOAN ⁽²⁾	125,000		3.10	%	3,871		125,000		Jan 2019	Jan 2019
2014 5 YEAR TERM LOAN VARIABLE ⁽⁶⁾	25,000		1.88	%	470		25,000		Jan 2019	Jan 2019
2014 7 YEAR TERM LOAN ⁽²⁾	30,000		3.73	%	1,118		30,000		Jan 2021	Jan 2021
2014 7 YEAR TERM LOAN VARIABLE ⁽⁶⁾	70,000		2.13	%	1,490		70,000		Jan 2021	Jan 2021
2013 REVOLVING FACILITY	210,000		1.88	%	3,944		210,000		Apr 2016	Apr 2018
Total	$	2,061,723	4.36	%	$	115,634	$	1,939,148
AMORTIZATION OF DEFERRED FINANCING FEES	—		0.19	%	—		—
EFFECTIVE INTEREST RATE	$	2,061,723	4.55	%	$	115,634	$	1,939,148


⁽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 loan has been effectively swapped to the fixed interest rate presented.


⁽³⁾	The Company repaid this mortgage loan in April 2015.


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


⁽⁵⁾	Payments are of interest only until April 2015.


⁽⁶⁾	Amounts presented were swapped to a fixed interest rate in April 2015.

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios ⁽¹⁾




	March 31, 2015
Consolidated Liabilities to Gross Asset Value	49.57	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 60%
Secured Indebtedness to Gross Asset Value	36.55	%
Secured indebtedness to Gross Asset Value may not exceed 60%
Adjusted EBITDA to Fixed Charges	2.01
Adjusted EBITDA may not be less than 1.45 to 1.00
Unencumbered Adjusted NOI to Unsecured Interest Expense	11.19
Unencumbered Adjusted NOI to Unsecured Interest Expense may not be less than 1.75 to 1.00
Unencumbered Debt Yield	18.36	%
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 and 2014 Term Loans. In addition to the ratios set forth herein, there are several other ratios under the 2013 Revolving Facility and 2014 Term Loans with which the Company must comply, all of which are described in the Company’s 2014 Annual Report on Form 10-K dated February 23, 2015.

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 (computed in accordance with GAAP) 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 three months ended March 31, 2015 and 2014 to show the effect of acquisition costs and loss on hedge ineffectiveness, which had a significant effect on our results of operations, but are 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 our operating performance, such as acquisition costs and loss on hedge ineffectiveness.

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 expense of our partnership investments. 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 expense, interest expense, depreciation and amortization, gains on sales of non-operating real estate, impairment losses, and 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, and (5) 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 Credit Agreements;


•	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;


•	current economic conditions and the state of unemployment growth 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;


•	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;


•	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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