Core Mall Sales Per Square Foot Reach $613 in March, up from $603 at Year End
Strong Leasing Activity Resulted in Core Mall Leased Space at
94.0%
Asset Sales in Process Increased to $275 Million
PHILADELPHIA, May 5, 2022 /PRNewswire/ -- PREIT (NYSE:
PEI) today reported results for the three months ended March 31, 2022. A description of each
non-GAAP financial measure and the related reconciliation to the
comparable GAAP financial measure is provided in the tables
accompanying this release.
|
|
Three Months Ended
March 31,
|
|
|
(per share
amounts)
|
|
2022
|
|
|
2021
|
|
|
Net loss - basic and
diluted
|
|
$
|
(0.49)
|
|
|
$
|
(0.64)
|
|
|
FFO
|
|
$
|
(0.01)
|
|
|
$
|
(0.14)
|
|
|
FFO, as
adjusted
|
|
$
|
(0.06)
|
|
|
$
|
(0.15)
|
|
|
"Our portfolio of assets continues to draw interest from
investors and tenants interested in assets and parcels.
We continue to focus on executing on the near-term plan to exercise
our credit facility extension and our longer-term plan to improve
our balance sheet through land and asset sales, " said Joseph F. Coradino, Chairman and CEO of
PREIT. "The team's attention is on executing on our plan to
improve our portfolio valuation through strong leasing and
operating results and our capital position through asset
sales. This quarter's performance demonstrates the
proficiency of our team, driving strong net operating income
results and an increase in transactions in process to $275 million based on growing interest."
- Same Store NOI, excluding lease termination revenue, increased
16.0% for the three months ended March 31,
2022 compared to the three months ended March 31, 2021.
-
- For the quarter, results were primarily impacted by a strong
leasing and sales environment resulting in increased rent,
percentage rent, percent sales and common area revenue of
$3.5 million, and a decrease in
credit losses for challenged tenants of $2.1
million compared to the three months ended March, 31,
2021.
- Robust leasing activity is driving increased occupancy with
Core Mall Total Occupancy increasing by 500 basis points to 92.7%
compared to the first quarter 2021. Core Mall Non-anchor Occupancy
increased 290 basis points, sequentially, to 88.8%.
- Total Core Mall leased space, at 94.0%, exceeds occupied space
by 130 basis points, and core mall non-anchor leased space, at
90.7%, exceeds occupied space by 190 basis points when including
executed new leases slated for future occupancy, demonstrating the
rapid pace of leasing activity.
- For the rolling 12 month period ended March 31, 2022, core mall comparable sales grew
by 18.6% to $613 per square
foot.
- Average renewal spreads for the three months ended March 31, 2022 improved to 3.7%. Sequentially,
average renewal spreads for tenants less than 10,000 square feet
improved from (11.0%) for the quarter ended December 31, 2021 to 3.8% for the quarter ended
March 31, 2022.
- The Company made notable advances in its capital-raising
efforts and is now underway with $275
million in transactions and anticipates closing
approximately $109 million in sales
prior to June 30, 2022.
Leasing and Redevelopment
- 408,000 square feet of leases are signed for future openings,
which is expected to contribute annualized gross rent of
$6.8 million.
- Leasing momentum continues to build with transactions executed
for 203,000 square feet of occupancy thus far in 2022.
- Construction is expected to begin this year on a new
self-storage facility in previously unused below grade space at
Mall at Prince George's in
Hyattsville, MD.
- A lease has been executed with Tilted 10 and Tilt Studio, an
action-packed bi-level 104,000 square foot indoor family
entertainment center at Willow Grove Park, adding family
entertainment to this locally-loved destination shopping
experience, and is expected to open in the third quarter 2022.
- Phoenix Theatres at Woodland Mall, occupying 47,000 square
feet, opened in April 2022.
- HomeGoods at Cumberland Mall opened in March 2022 occupying 23,000 square feet.
- Landlord work is underway for a new prototype, 32,000 square
foot, LEGO® Discovery Center at Springfield Town Center with
expected opening in third quarter 2023.
- New-to-portfolio tenants have been executed at Cherry Hill Mall
for occupancy in 2022: Marc Cain and
Warby Parker are now open and Eddie
V's Prime Seafood is expected to open later this year.
Primary Factors Affecting Financial Results for the Three
Months Ended March 31, 2022 and
2021
- Net loss attributable to PREIT common shareholders was
$39.3 million (which takes into
consideration the accrual of preferred dividends that accumulated
during the quarter but have not been paid), or $0.49 per basic and diluted share for the three
months ended March 31, 2022, compared
to net loss attributable to PREIT common shareholders of
$49.6 million, or $0.64 per basic and diluted share for the three
months ended March 31, 2021.
- Funds from Operations showed significant improvement over the
quarter ended March 31, 2021 driven
by increases in real estate revenue, a gain on sale of the
preferred share interest resulting from the sale of our interest in
land in New Garden, PA, reduced
general and administrative and restructuring costs offset by a gain
on hedge ineffectiveness that impacted the quarter ended
March 31, 2021.
- Same Store NOI, including lease terminations, increased by
$6.8 million, or 18.0%. The increase
is primarily due to higher rent, percent sales, percentage rent and
lease termination revenue, and decrease in credit losses as
compared to the prior year.
- FFO for the three months ended March 31,
2022 was $(0.01) per diluted
share and OP Unit compared to $(0.14)
per diluted share and OP Unit for the three months ended
March 31, 2021.
All NOI and FFO amounts referenced as primary factors affecting
financial results above include our share of unconsolidated
properties' revenues and expenses. Additional information regarding
changes in operating results for the three months ended
March 31, 2022 and 2021 is included
on page 15.
Liquidity and Financing Activities
As of
March 31, 2022, the Company had
$76.2 million available under its
First Lien Revolving Credit Facility. The Company's corporate cash
balances, when combined with available credit, provide total
liquidity of $110.5 million.
In March 2022, the mortgage loan
secured by Gloucester Premium Outlets was extended for one
year.
Asset Dispositions
Multifamily Land
Parcels: The Company has executed agreements of sale for land
parcels for anticipated multi-family development in the aggregate
amount of $72.0 million. The
agreements are with multiple buyers across four properties for over
1,800 units as part of the Company's previously announced
multi-family land sale plan. Of particular note, the
transaction for the multi-family land sale at Exton Square Mall is
factored into the asset sale price noted below. Closing on these
transactions is subject to customary due diligence provisions and
securing entitlements.
Hotel Parcels: The Company has an executed agreement of
sale to convey a land parcel for anticipated hotel development in
the amount of $2.5 million for
approximately 125 rooms. The Company has an executed LOI for the
sale of a parcel for hotel development at Springfield Town Center
for $2.7 million. Closing on these
transactions is subject to customary due diligence provisions and
securing entitlements.
Other Parcels: In February, we completed the
redemption of preferred equity issued as part of the sale of our
New Garden land parcel. In
connection with this settlement, we received approximately
$2.5 million. The Company
expects to close on the sale of an anchor box at Valley View Mall
in the second quarter for $2.8
million. In March, the Company executed a purchase and
sale agreement for the sale of Exton Square Mall for $27.5 million. In April, we executed
a purchase and sale agreement for the sale of the former Sears TBA
location at Moorestown Mall for $3.35
million.
2022 Outlook
The Company is not issuing
detailed guidance at this time.
Conference Call Information
Management has
scheduled a conference call for 11:00 a.m.
Eastern Time on Thursday May 5, 2022, to review the
Company's results and future outlook. To listen to the call,
please dial 1(844) 200-6205 (domestic toll free), or 1(646)
904-5544 (international), and request to join the PREIT call,
Conference ID 949541, at least fifteen minutes before the scheduled
start time as callers could experience delays. Investors can
also access the call in a "listen only" mode via the internet at
the Company's website, preit.com. Please allow extra time
prior to the call to visit the site and download the necessary
software to listen to the Internet broadcast. Financial and
statistical information expected to be discussed on the call will
also be available on the Company's website.
For interested individuals unable to join the conference call,
the online archive of the webcast will also be available for one
year following the call.
About PREIT
PREIT (NYSE:PEI) is a publicly
traded real estate investment trust that owns and manages
innovative properties developed to be thoughtful, community-centric
hubs. PREIT's robust portfolio of carefully curated, ever-evolving
properties generates success for its tenants and meaningful impact
for the communities it serves by keenly focusing on five core areas
of established and emerging opportunity: multi-family & hotel,
health & tech, retail, essentials & grocery and
experiential. Located primarily in densely-populated regions, PREIT
is a top operator of high quality, purposeful places that serve as
one-stop destinations for customers to shop, dine, play and stay.
Additional information is available at www.preit.com or on Twitter,
Instagram or LinkedIn.
Rounding
Certain summarized information in the
tables included may not total due to rounding.
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 (i) depreciation and amortization
of real estate, (ii) gains and losses on sales of certain real
estate assets, (iii) gains and losses from change in control and
(iv) impairment write-downs of certain real estate assets and
investments in entities when the impairment is directly
attributable to decreases in the value of depreciable real estate
held by the entity. 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
(including development land parcels), which are included in the
determination of net loss 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 loss and net cash used in 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 loss (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 loss is the
most directly comparable GAAP measurement to FFO.
When applicable, we also present FFO, as adjusted, and FFO per
diluted share and OP Unit, as adjusted, which are non-GAAP
measures, for the three months ended March
31, 2022 and 2021, to show the effect of such items as
provision for employee separation expense, gain or loss on sale of
preferred equity interests, gain or loss on hedge ineffectiveness
and reorganization expenses which had an effect on our results of
operations, but are not, in our opinion, indicative of our ongoing
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 loss 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 provision for employee separation expense, gain on hedge
ineffectiveness and reorganization expenses.
Net Operating Income ("NOI")
NOI (a non-GAAP measure) is derived from real estate revenue
(determined in accordance with GAAP, including lease termination
revenue), minus property operating expenses (determined in
accordance with GAAP), plus our pro rata share of revenue and
property operating expenses of our unconsolidated partnership
investments. NOI does not represent cash generated from operating
activities in accordance with GAAP and should not be considered to
be an alternative to net loss (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 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 loss is the most directly comparable GAAP
measure to NOI. NOI excludes other income, depreciation and
amortization, general and administrative expenses, provision for
employee separation expenses, project costs and other expenses,
interest expense, reorganization expenses, equity in loss/income of
partnerships and gain/loss on sale of preferred equity shares.
Same Store NOI is calculated using retail properties owned for
the full periods presented and excludes properties acquired or
disposed of, under redevelopment, or designated as non-core during
the periods presented. Non Same Store NOI is calculated using
the retail properties excluded from the calculation of Same Store
NOI.
Unconsolidated Properties and Proportionate Financial
Information
The non-GAAP financial measures of FFO and NOI presented in this
press release incorporate financial information attributable to our
share of unconsolidated properties. This proportionate financial
information is non-GAAP financial information, but we believe that
it is helpful information because it reflects the pro rata
contribution from our unconsolidated properties that are owned
through investments accounted for under GAAP using the equity
method of accounting. Under such method, earnings from these
unconsolidated partnerships are recorded in our statements of
operations prepared in accordance with GAAP under the caption
entitled "Equity in (loss) income of partnerships."
To derive the proportionate financial information from our
unconsolidated properties," we multiplied the percentage of our
economic interest in each partnership on a property-by-property
basis by each line item. Under the partnership agreements
relating to our current unconsolidated partnerships with third
parties, we own a 25% to 50% economic interest in such
partnerships, and there are generally no provisions in such
partnership agreements relating to special non-pro rata allocations
of income or loss, and there are no preferred or priority returns
of capital or other similar provisions. While this method
approximates our indirect economic interest in our pro rata share
of the revenue and expenses of our unconsolidated partnerships, we
do not have a direct legal claim to the assets, liabilities,
revenues or expenses of the unconsolidated partnerships beyond our
rights as an equity owner in the event of any liquidation of such
entity. Our percentage ownership is not necessarily
indicative of the legal and economic implications of our ownership
interest. Accordingly, NOI and FFO results based on our share of
the results of unconsolidated partnerships do not represent cash
generated from our investments in these partnerships.
Core Properties
Core Properties include all operating retail properties except
for Exton Square Mall. Valley View Mall was previously designated a
non-core property, as we no longer operate this property. Core
Malls excludes these properties, power centers and Gloucester
Premium Outlets.
Forward Looking Statements
This press release
contains certain forward-looking statements that can be identified
by the use of words such as "anticipate," "believe," "estimate,"
"expect," "intend," "may," "project," and similar expressions.
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, results, cost reductions and the impact of
COVID-19 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 the following:
- the effectiveness of our financial restructuring and any
additional strategies that we may employ to address our liquidity
and capital resources in the future;
- our ability to achieve forecasted revenue and pro forma
leverage ratio and generate free cash flow to further reduce
indebtedness;
- the COVID-19 global pandemic and the public health and
governmental response, which have created periods of significant
economic disruptions and also have and may continue to exacerbate
many of the risks listed herein;
- changes in the retail and real estate industries, including
bankruptcies, consolidation and store closings, particularly among
anchor tenants;
- changes in economic conditions, including unemployment rates
and its effects on consumer confidence and spending, supply chain
challenges, the current inflationary environment, and the
corresponding effects on tenant business performance, prospects,
solvency and leasing decisions;
- our inability to collect rent due to the bankruptcy or
insolvency of tenants or otherwise;
- our ability to maintain and increase property occupancy, sales
and rental rates;
- increases in operating costs that cannot be passed on to
tenants, which may be exacerbated in the current inflationary
environment;
- the effects of online shopping and other uses of technology on
our retail tenants;
- risks related to our development and redevelopment activities,
including delays, cost overruns and our inability to reach
projected occupancy or rental rates;
- social unrest and acts of vandalism or violence at malls,
including our properties, or at other similar spaces, and the
potential effect on traffic and sales;
- our ability to sell properties that we seek to dispose of,
which may be delayed by, among other things, the failure to obtain
zoning, occupancy and other governmental approvals and permits or,
to the extent required, approvals of other third parties;
- potential losses on impairment of certain long-lived assets,
such as real estate, including losses that we might be required to
record in connection with any disposition of assets;
- our substantial debt and our ability to remain in compliance
with our financial covenants under our debt facilities;
- our ability to raise capital, including through sales of
properties or interests in properties, subject to the terms of our
Credit Agreements; and
- potential dilution from any capital raising transactions or
other equity issuances.
Additional factors that might cause future events, achievements
or results to differ materially from those expressed or implied by
our forward-looking statements include those discussed herein and
in our Annual Report on Form 10-K for the year ended December 31, 2021 in the section entitled "Item
1A. Risk Factors" and any subsequent reports we file with the SEC.
Any forward-looking statements made by us speak only as of the date
on which they are made, and we do not intend to update or revise
any forward-looking statements to reflect new information, future
events or otherwise.
** Quarterly
supplemental financial and operating
**
** information will be
available on www.preit.com
**
Pennsylvania Real
Estate Investment Trust
Selected Financial Data
|
|
|
|
Three Months
Ended
March 31,
|
|
(in thousands of
dollars)
|
|
2022
|
|
|
2021
|
|
REVENUE:
|
|
|
|
|
|
|
Real estate
revenue:
|
|
|
|
|
|
|
Lease
revenue
|
|
$
|
63,440
|
|
|
$
|
59,908
|
|
Expense
reimbursements
|
|
|
4,144
|
|
|
|
3,899
|
|
Other real estate
revenue
|
|
|
1,610
|
|
|
|
1,471
|
|
Total real estate
revenue
|
|
|
69,194
|
|
|
|
65,278
|
|
Other
income
|
|
|
241
|
|
|
|
125
|
|
Total
revenue
|
|
|
69,435
|
|
|
|
65,403
|
|
EXPENSES:
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Property operating
expenses:
|
|
|
|
|
|
|
CAM and real estate
taxes
|
|
|
(27,872)
|
|
|
|
(27,831)
|
|
Utilities
|
|
|
(3,561)
|
|
|
|
(2,964)
|
|
Other property
operating expenses
|
|
|
(2,140)
|
|
|
|
(2,364)
|
|
Total property
operating expenses
|
|
|
(33,573)
|
|
|
|
(33,159)
|
|
Depreciation and
amortization
|
|
|
(29,110)
|
|
|
|
(29,839)
|
|
General and
administrative expenses
|
|
|
(11,483)
|
|
|
|
(11,831)
|
|
Provision for
employee separation expenses
|
|
|
(84)
|
|
|
|
(92)
|
|
Project costs and
other expenses
|
|
|
(60)
|
|
|
|
(101)
|
|
Total operating
expenses
|
|
|
(74,310)
|
|
|
|
(75,022)
|
|
Interest expense,
net
|
|
|
(31,391)
|
|
|
|
(30,731)
|
|
Reorganization
expenses
|
|
|
-
|
|
|
|
(197)
|
|
Total
expenses
|
|
|
(105,701)
|
|
|
|
(105,950)
|
|
Loss before equity in
loss of partnerships and gain on sale of preferred equity
interest
|
|
|
(36,266)
|
|
|
|
(40,547)
|
|
Equity in loss of
partnerships
|
|
|
(395)
|
|
|
|
(3,433)
|
|
Gain on sale of
preferred equity interest
|
|
|
3,688
|
|
|
|
-
|
|
Net
loss
|
|
|
(32,973)
|
|
|
|
(43,980)
|
|
Less: net loss
attributable to noncontrolling interest
|
|
|
504
|
|
|
|
1,234
|
|
Net loss
attributable to PREIT
|
|
|
(32,469)
|
|
|
|
(42,746)
|
|
Less: preferred share
dividends
|
|
|
(6,844)
|
|
|
|
(6,844)
|
|
Net loss
attributable to PREIT common shareholders
|
|
$
|
(39,313)
|
|
|
$
|
(49,590)
|
|
Pennsylvania Real
Estate Investment Trust
Selected Financial Data
|
|
|
|
Three Months
Ended
March 31,
|
|
(in thousands,
except per share amounts)
|
|
2022
|
|
|
2021
|
|
Net loss
|
|
$
|
(32,973)
|
|
|
$
|
(43,980)
|
|
Noncontrolling
interest
|
|
|
504
|
|
|
|
1,234
|
|
Preferred share
dividends
|
|
|
(6,844)
|
|
|
|
(6,844)
|
|
Net loss used to
calculate loss per share—basic and diluted
|
|
$
|
(39,313)
|
|
|
$
|
(49,590)
|
|
Basic and diluted
loss per share:
|
|
$
|
(0.49)
|
|
|
$
|
(0.64)
|
|
|
|
|
|
|
|
|
(in thousands of
shares)
|
|
|
|
|
|
|
Weighted average
shares outstanding—basic
|
|
|
79,577
|
|
|
|
77,647
|
|
Effect of common
share equivalents(1)
|
|
|
—
|
|
|
|
—
|
|
Weighted average
shares outstanding—diluted
|
|
|
79,577
|
|
|
|
77,647
|
|
|
|
(1)
|
The Company had net
losses in all periods presented. Therefore, the effects of common
share equivalents are excluded from the calculation of diluted loss
per share for these periods because they would be
antidilutive.
|
|
|
Three Months
Ended
March 31,
|
|
(in thousands of
dollars)
|
|
2022
|
|
|
2021
|
|
Comprehensive
loss:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(32,973)
|
|
|
$
|
(43,980)
|
|
Unrealized gain (loss)
on derivatives
|
|
|
5,807
|
|
|
|
2,601
|
|
Amortization of
settled swaps
|
|
|
-
|
|
|
|
3
|
|
Total comprehensive
loss
|
|
|
(27,166)
|
|
|
|
(41,376)
|
|
Less: comprehensive
loss attributable to noncontrolling interest
|
|
|
431
|
|
|
|
1,170
|
|
Comprehensive loss
attributable to PREIT
|
|
$
|
(26,735)
|
|
|
$
|
(40,206)
|
|
Pennsylvania Real Estate Investment Trust
Selected Financial Data
The following table presents a reconciliation of net loss
determined in accordance with GAAP to (i) FFO attributable to
common shareholders and OP Unit holders, (ii) FFO, as adjusted,
attributable to common shareholders and OP Unit holders, (iii) FFO
attributable to common shareholders and OP Unit holders per diluted
share and OP Unit, (iv) and FFO, as adjusted, attributable to
common shareholders and OP Unit holders per diluted share and OP
Unit for the three months ended March 31,
2022 and 2021:
|
|
Three Months Ended
March 31,
|
|
(in thousands,
except per share amounts)
|
|
2022
|
|
|
2021
|
|
Net
loss
|
|
$
|
(32,973)
|
|
|
$
|
(43,980)
|
|
Depreciation and
amortization on real estate:
|
|
|
|
|
|
|
Consolidated
properties
|
|
|
28,798
|
|
|
|
29,491
|
|
PREIT's share of
equity method investments
|
|
|
3,022
|
|
|
|
3,187
|
|
Funds from operations
attributable to common shareholders and OP Unit holders
|
|
|
(1,153)
|
|
|
|
(11,302)
|
|
Provision for employee
separation expenses
|
|
|
84
|
|
|
|
92
|
|
Gain on hedge
ineffectiveness
|
|
|
-
|
|
|
|
(1,303)
|
|
Gain on sale of
preferred equity interest
|
|
|
(3,688)
|
|
|
|
-
|
|
Reorganization
expenses
|
|
|
-
|
|
|
|
197
|
|
Funds from
operations, as adjusted, attributable to common shareholders and OP
Unit holders
|
|
|
(4,757)
|
|
|
|
(12,316)
|
|
|
|
|
|
|
|
|
Funds from operations
attributable to common shareholders and OP Unit holders per diluted
share and OP Unit
|
|
$
|
(0.01)
|
|
|
$
|
(0.14)
|
|
Funds from
operations, as adjusted, attributable to common shareholders and OP
Unit holders per diluted share and OP Unit
|
|
$
|
(0.06)
|
|
|
$
|
(0.15)
|
|
|
|
|
|
|
|
|
(in thousands of
shares)
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
79,577
|
|
|
|
77,647
|
|
Weighted average
effect of full conversion of OP Units
|
|
|
1,031
|
|
|
|
1,976
|
|
Effect of common
share equivalents
|
|
|
0
|
|
|
|
691
|
|
Total weighted
average shares outstanding, including OP Units
|
|
|
80,608
|
|
|
|
80,314
|
|
Pennsylvania Real Estate Investment Trust
Selected Financial Data
NOI for the three months ended March 31,
2022 and 2021:
|
Same
Store
|
|
Change
|
|
Non Same
Store
|
|
Total
|
|
(in thousands of
dollars)
|
2022
|
|
2021
|
|
$
|
|
%
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
NOI from consolidated
properties
|
$
|
36,122
|
|
$
|
32,707
|
|
$
|
3,415
|
|
|
10.4
|
%
|
$
|
(500)
|
|
$
|
(588)
|
|
$
|
35,622
|
|
$
|
32,119
|
|
NOI attributable to
equity method investments, at ownership share
|
|
8,442
|
|
|
5,060
|
|
|
3,382
|
|
|
66.8
|
%
|
|
(13)
|
|
|
(18)
|
|
|
8,429
|
|
|
5,042
|
|
Total
NOI
|
|
44,564
|
|
|
37,767
|
|
|
6,797
|
|
|
18.0
|
%
|
|
(513)
|
|
|
(606)
|
|
|
44,051
|
|
|
37,161
|
|
Less: lease
termination revenue
|
|
802
|
|
|
36
|
|
|
766
|
|
|
2,127.8
|
%
|
|
-
|
|
|
-
|
|
|
802
|
|
|
36
|
|
Total NOI excluding
lease termination revenue
|
$
|
43,762
|
|
$
|
37,731
|
|
$
|
6,031
|
|
|
16.0
|
%
|
$
|
(513)
|
|
$
|
(606)
|
|
$
|
43,249
|
|
$
|
37,125
|
|
Pennsylvania Real Estate Investment Trust
Selected Financial Data
The table below reconciles net loss to NOI of our consolidated
properties for the three months ended March
31, 2022 and 2021.
|
|
Three Months Ended
March 31,
|
|
(in thousands of
dollars)
|
|
2022
|
|
|
2021
|
|
Net loss
|
|
$
|
(32,973)
|
|
|
$
|
(43,980)
|
|
Other
income
|
|
|
(241)
|
|
|
|
(125)
|
|
Depreciation and
amortization
|
|
|
29,110
|
|
|
|
29,839
|
|
General and
administrative expenses
|
|
|
11,483
|
|
|
|
11,831
|
|
Provision for
employee separation expense
|
|
|
84
|
|
|
|
92
|
|
Project costs and
other expenses
|
|
|
60
|
|
|
|
101
|
|
Interest expense,
net
|
|
|
31,391
|
|
|
|
30,731
|
|
Reorganization
expenses
|
|
|
-
|
|
|
|
197
|
|
Equity in loss
(income) of partnerships
|
|
|
395
|
|
|
|
3,433
|
|
Gain on sale of
preferred equity interest
|
|
|
(3,688)
|
|
|
|
-
|
|
NOI from consolidated
properties
|
|
|
35,621
|
|
|
|
32,119
|
|
Less: Non Same Store
NOI of consolidated properties
|
|
|
(500)
|
|
|
|
(588)
|
|
Same Store NOI from
consolidated properties
|
|
|
36,122
|
|
|
|
32,707
|
|
Less: Same Store
lease termination revenue
|
|
|
9
|
|
|
|
36
|
|
Same Store NOI
excluding lease termination revenue
|
|
$
|
36,113
|
|
|
$
|
32,671
|
|
Pennsylvania Real Estate Investment Trust
Selected Financial Data
The table below reconciles equityin (loss) income of
partnerships to NOI of equity method investments at ownership share
for the three months ended March 31,
2022 and 2021:
|
|
Three Months Ended
March 31,
|
|
|
|
2022
|
|
|
2021
|
|
Equity in loss of
partnerships
|
|
$
|
(395)
|
|
|
$
|
(3,433)
|
|
Other
income
|
|
|
-
|
|
|
|
-
|
|
Depreciation and
amortization
|
|
|
3,022
|
|
|
|
3,187
|
|
Interest and other
expenses
|
|
|
5,802
|
|
|
|
5,288
|
|
Net operating
income from equity method investments at ownership
share
|
|
|
8,429
|
|
|
|
5,042
|
|
Less: Non Same Store
NOI from equity method investments at ownership share
|
|
|
(13)
|
|
|
|
(18)
|
|
Same Store NOI of
equity method investments at ownership share
|
|
|
8,442
|
|
|
|
5,060
|
|
Less: Same Store
lease termination revenue
|
|
|
793
|
|
|
|
-
|
|
Same Store NOI
from equity method investments excluding lease termination revenue
at ownership share
|
|
$
|
7,649
|
|
|
$
|
5,060
|
|
Pennsylvania Real
Estate Investment Trust
Selected Financial Data
|
|
(in thousands,
except per share amounts)
|
|
March 31,
2022
|
|
|
December 31,
2021
|
|
ASSETS:
|
|
|
|
|
|
|
INVESTMENTS IN REAL
ESTATE, at cost:
|
|
|
|
|
|
|
Operating
properties
|
|
$
|
3,113,736
|
|
|
$
|
3,156,194
|
|
Construction in
progress
|
|
|
45,146
|
|
|
|
45,828
|
|
Land held for
development
|
|
|
4,339
|
|
|
|
4,339
|
|
Total investments in
real estate
|
|
|
3,163,221
|
|
|
|
3,206,361
|
|
Accumulated
depreciation
|
|
|
(1,417,522)
|
|
|
|
(1,405,260)
|
|
Net investments in
real estate
|
|
|
1,745,699
|
|
|
|
1,801,101
|
|
INVESTMENTS IN
PARTNERSHIPS, at equity:
|
|
|
12,749
|
|
|
|
16,525
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
45,554
|
|
|
|
43,852
|
|
Tenant and other
receivables, net
|
|
|
36,036
|
|
|
|
42,501
|
|
Intangible assets,
net
|
|
|
9,752
|
|
|
|
10,054
|
|
Deferred costs and
other assets, net
|
|
|
123,957
|
|
|
|
128,923
|
|
Assets held for
sale
|
|
|
42,416
|
|
|
|
8,780
|
|
Total
assets
|
|
$
|
2,016,163
|
|
|
$
|
2,051,736
|
|
LIABILITIES:
|
|
|
|
|
|
|
Mortgage loans
payable, net
|
|
$
|
844,987
|
|
|
$
|
851,283
|
|
Term Loans,
net
|
|
|
971,761
|
|
|
|
959,137
|
|
Revolving
Facility
|
|
|
53,818
|
|
|
|
54,549
|
|
Tenants' deposits and
deferred rent
|
|
|
11,177
|
|
|
|
10,180
|
|
Distributions in
excess of partnership investments
|
|
|
69,344
|
|
|
|
71,570
|
|
Fair value of
derivative liabilities
|
|
|
2,613
|
|
|
|
8,427
|
|
Accrued expenses and
other liabilities
|
|
|
77,319
|
|
|
|
89,543
|
|
Total
liabilities
|
|
|
2,031,019
|
|
|
|
2,044,689
|
|
COMMITMENTS AND
CONTINGENCIES (Note 8)
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
Series B Preferred
Shares, $.01 par value per share; 25,000 shares authorized; 3,450
shares issued and outstanding; liquidation preference of $97,381
and $95,791 at March 31, 2022 and December 31, 2021,
respectively
|
|
|
35
|
|
|
|
35
|
|
Series C Preferred
Shares, $.01 par value per share; 25,000 shares authorized; 6,900
shares issued and outstanding; liquidation preference of $194,235
and $191,130 at March 31, 2022 and December 31, 2021,
respectively
|
|
|
69
|
|
|
|
69
|
|
Series D Preferred
Shares, $.01 par value per share; 25,000 shares authorized; 5,000
shares issued and outstanding; liquidation preference of $140,040
and $137,891 at March 31, 2022 and December 31, 2021,
respectively
|
|
|
50
|
|
|
|
50
|
|
Shares of beneficial
interest, $1.00 par value per share; 200,000 shares authorized;
79,260 and 80,200 shares issued and outstanding at March 31, 2022
and December 31, 2022, respectively
|
|
|
80,617
|
|
|
|
80,200
|
|
Capital contributed in
excess of par
|
|
|
1,781,859
|
|
|
|
1,777,013
|
|
Accumulated other
comprehensive loss
|
|
|
(3,096)
|
|
|
|
(8,830)
|
|
Distributions in
excess of net income
|
|
|
(1,864,844)
|
|
|
|
(1,832,375)
|
|
Total
equity—Pennsylvania Real Estate Investment Trust
|
|
|
(5,310)
|
|
|
|
16,162
|
|
Noncontrolling
interest
|
|
|
(9,546)
|
|
|
|
(9,115)
|
|
Total equity
(deficit)
|
|
|
(14,856)
|
|
|
|
7,047
|
|
Total liabilities and
equity
|
|
$
|
2,016,163
|
|
|
$
|
2,051,736
|
|
Pennsylvania Real Estate Investment Trust
Selected Financial Data
Changes in Funds from Operations for the three months ended
March 31, 2022 as compared to the
three months ended March 31, 2021
(all per share amounts on a diluted basis unless otherwise noted;
per share amounts rounded to the nearest half penny; amounts may
not total due to rounding)
(in thousands,
except per share amounts)
|
|
Three Months
Ended
March 31
|
|
|
Per Diluted
Share and OP
Unit
|
|
Funds from
Operations, as adjusted March 31, 2021
|
|
$
|
(12,316)
|
|
|
$
|
(0.15)
|
|
|
|
|
|
|
|
|
Changes - Q1 2021
to Q1 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution from
anchor replacements and new box tenants
|
|
|
247
|
|
|
|
-
|
|
Impact from
bankruptcies
|
|
|
30
|
|
|
|
-
|
|
Other leasing
activity, including base rent and net CAM and real estate tax
recoveries
|
|
|
1,737
|
|
|
|
0.02
|
|
Lease termination
revenue
|
|
|
(27)
|
|
|
|
-
|
|
Credit
losses
|
|
|
1,173
|
|
|
|
0.02
|
|
Other
|
|
|
255
|
|
|
|
-
|
|
Same Store NOI from
unconsolidated properties
|
|
|
3,382
|
|
|
|
0.04
|
|
Same Store
NOI
|
|
|
6,797
|
|
|
|
0.08
|
|
Non Same Store
NOI
|
|
|
93
|
|
|
|
-
|
|
General and
administrative expenses
|
|
|
348
|
|
|
|
0.01
|
|
Capitalization of
leasing costs
|
|
|
28
|
|
|
|
-
|
|
Other
|
|
|
1,477
|
|
|
|
0.02
|
|
Interest expense,
net
|
|
|
(1,184)
|
|
|
|
(0.02)
|
|
Funds from
Operations, as adjusted March 31, 2022
|
|
|
(4,757)
|
|
|
|
(0.06)
|
|
Provision for
employee separation expense
|
|
|
(84)
|
|
|
|
-
|
|
Gain on sale of
preferred equity interest
|
|
|
3,688
|
|
|
|
0.05
|
|
Funds from
Operations, March 31, 2022
|
|
$
|
(1,153)
|
|
|
$
|
(0.01)
|
|
CONTACT: AT THE COMPANY
Mario Ventresca
EVP & CFO
(215) 875-0703
Heather Crowell
EVP, Strategy and Communications
(215) 454-1241
heather.crowell@preit.com
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SOURCE PREIT