PREIT / 1
Exhibit 99.1
CONTACT: AT THE COMPANY
Mario Ventresca
EVP & CFO
(215) 875-0703
Heather Crowell
EVP, Strategy and Communications
(215) 454-1241
heather.crowell@preit.com
PREIT Reports First Quarter 2022 Results
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 - 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."
PREIT / 2
Leasing and Redevelopment
Primary Factors Affecting Financial Results for the Three Months Ended March 31, 2022 and 2021
PREIT / 3
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
PREIT / 4
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
PREIT / 5
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.
PREIT / 6
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:
PREIT / 7
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 **
PREIT / 8 Pennsylvania Real Estate Investment Trust
Selected Financial Data
|
|
Three Months Ended |
|
|||||
(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 |
) |
PREIT / 9 Pennsylvania Real Estate Investment Trust
Selected Financial Data
|
|
Three Months Ended |
|
|||||
(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 |
|
|||||
(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 |
) |
PREIT / 10 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 |
|
PREIT / 11 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 |
|
PREIT / 12 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 |
|
PREIT / 13 Pennsylvania Real Estate Investment Trust
Selected Financial Data
The table below reconciles equity in (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 |
|
PREIT / 14 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 |
|
PREIT / 15 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 |
|
|
Per Diluted |
|
||
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 |
) |