10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2022

or

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number: 001-6300

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

(Exact name of Registrant as specified in its charter)

Pennsylvania	23-6216339
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One Commerce Square 2005 Market Street, Suite 1000 Philadelphia, PA	19103
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (215) 875-0700

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of Exchange on which registered
Shares of Beneficial Interest, par value $1.00 per share	PEI	New York Stock Exchange
Series B Preferred Shares, par value $0.01 per share	PEIPrB	New York Stock Exchange
Series C Preferred Shares, par value $0.01 per share	PEIPrC	New York Stock Exchange
Series D Preferred Shares, par value $0.01 per share	PEIPrD	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☒ No ☐

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. On May 4, 2022, 80,612,437 shares of beneficial interest, par value $1.00 per share, of the Registrant were outstanding.

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

CONTENTS

			Page
	PART I—FINANCIAL INFORMATION
Item 1.		Financial Statements (Unaudited):	1
		Consolidated Balance Sheets—March 31, 2022 and December 31, 2021	1
		Consolidated Statements of Operations—Three Months Ended March 31, 2022 and 2021	2
		Consolidated Statements of Comprehensive Loss—Three Months Ended March 31, 2022 and 2021	4
		Consolidated Statements of Equity—Three Months Ended March 31, 2022 and 2021	5
		Consolidated Statements of Cash Flows—Three Months Ended March 31, 2022 and 2021	6
		Notes to Unaudited Consolidated Financial Statements	7
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.		Quantitative and Qualitative Disclosures About Market Risk	43
Item 4.		Controls and Procedures	45
		PART II—OTHER INFORMATION
Item 1.		Legal Proceedings	46
Item 1A.		Risk Factors	46
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 3.		Defaults Upon Senior Securities	46
Item 4.		Not Applicable
Item 5.		Not Applicable
Item 6.		Exhibits	47
Signatures			49

Except as the context otherwise requires, references in this Quarterly Report on Form 10-Q to “we,” “our,” “us,” the “Company” and “PREIT” refer to Pennsylvania Real Estate Investment Trust and its subsidiaries, including our operating partnership, PREIT Associates, L.P. References in this Quarterly Report on Form 10-Q to “PREIT Associates” or the “Operating Partnership” refer to PREIT Associates, L.P.

Item 1. FINANCIAL STATEMENTS

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(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		36,036			42,501
Intangible assets (net of accumulated amortization of $21,900 and $21,598 at March 31, 2022 and December 31, 2021, respectively)		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 Facilities		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 instruments		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; 80,617 and 80,200 shares issued and outstanding at March 31, 2022 and December 31, 2021, 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 (deficit) – 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

See accompanying notes to the unaudited consolidated financial statements.

1

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	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	)

See accompanying notes to the unaudited consolidated financial statements.

2

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)

(Unaudited)

	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 used to calculate earnings per share for the three months ended March 31, 2022 and 2021. 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.

See accompanying notes to the unaudited consolidated financial statements.

3

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

	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	)

See accompanying notes to the unaudited consolidated financial statements.

4

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

CONSOLIDATED STATEMENTS OF EQUITY

Three Months Ended March 31, 2022 and 2021

(Unaudited)

				PREIT Shareholders
				Preferred Shares $.01 par						Shares of Beneficial		Capital Contributed		Accumulated Other			Distributions			Non-
(in thousands of dollars, except per share amounts)	Total Equity			Series B		Series C		Series D		Interest, $1.00 Par		in Excess of Par		Comprehensive Loss			in Excess of Net Income			controlling interest
Balance January 1, 2022	$	7,047		$	35	$	69	$	50	$	80,200	$	1,777,013	$	(8,830	)	$	(1,832,375	)	$	(9,115	)
Net loss		(32,973	)		—		—		—		—		—		—			(32,469	)		(504	)
Other comprehensive income		5,807			—		—		—		—		—		5,734			—			73
Shares issued under employee compensation plan, net of shares retired		4,449			—		—		—		417		4,032		—			—			—
Amortization of deferred compensation		814			—		—		—		—		814		—			—			—
Balance March 31, 2022	$	(14,856	)	$	35	$	69	$	50	$	80,617	$	1,781,859	$	(3,096	)	$	(1,864,844	)	$	(9,546	)

				PREIT Shareholders
				Preferred Shares $.01 par						Shares of Beneficial			Capital Contributed			Accumulated Other			Distributions			Non-
(in thousands of dollars, except per share amounts)	Total Equity			Series B		Series C		Series D		Interest, $1.00 Par			in Excess of Par			Comprehensive Loss			in Excess of Net Income			controlling interest
Balance January 1, 2021	$	126,940		$	35	$	69	$	50	$	79,537		$	1,771,777		$	(20,620	)	$	(1,699,638	)	$	(4,270	)
Net loss		(43,980	)		—		—		—		—			—			—			(42,746	)		(1,234	)
Other comprehensive loss		2,604			—		—		—		—			—			2,540			—			64
Shares issued under employee compensation    plans, net of shares retired		(647	)		—		—		—		(277	)		(370	)		—			—			—
Amortization of deferred compensation		1,321			—		—		—		—			1,321			—			—			—
Balance March 31, 2021	$	86,238		$	35	$	69	$	50	$	79,260		$	1,772,728		$	(18,080	)	$	(1,742,384	)	$	(5,440	)

See accompanying notes to the unaudited consolidated financial statements.

5

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended March 31,
(in thousands of dollars)	2022			2021
Cash flows from operating activities:
Net loss	$	(32,973	)	$	(43,980	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation		27,436			28,149
Amortization		2,098			2,141
Straight-line rent adjustments		290			6
Amortization of deferred compensation		(165	)		1,321
Gain on sale of preferred equity interest		(3,688	)		—
Paid-in-kind interest		12,547			11,514
Gain on hedge ineffectiveness		(8	)		(1,303	)
Equity in loss (income) of partnerships		395			3,433
Cash distributions from partnerships		1,570			—
Change in assets and liabilities:
Net change in other assets		7,161			18,805
Net change in other liabilities		(6,209	)		(3,860	)
Net cash provided by operating activities		8,454			16,226
Cash flows from investing activities:
Investments in real estate improvements		(2,746	)		(1,928	)
Additions to construction in progress		(1,385	)		(1,029	)
Investments in partnerships		(415	)		(2	)
Capitalized leasing costs		(29	)		—
Proceeds from sale of preferred equity interest		2,438			—
Additions to leasehold improvements and corporate fixed assets		—			(7	)
Net cash used in investing activities		(2,137	)		(2,966	)
Cash flows from financing activities:
Net repayments under the Restructured Revolver		—			—
Net repayments to term loans		(2,437	)		—
Repayments of finance lease liabilities		—			(170	)
Principal installments on mortgage loans		(6,048	)		(9,505	)
Payment of deferred financing costs		(235	)		(253	)
Value of shares retired under equity incentive plans, net of shares issued		5,427			(647	)
Net cash used in financing activities		(3,293	)		(10,575	)
Net change in cash, cash equivalents, and restricted cash		3,024			2,685
Cash, cash equivalents, and restricted cash, beginning of period		58,077			51,231
Cash, cash equivalents, and restricted cash, end of period	$	61,101		$	53,916

See accompanying notes to the unaudited consolidated financial statements.

6

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022

1. BASIS OF PRESENTATION

Nature of Operations

Pennsylvania Real Estate Investment Trust (“PREIT” or the “Company”) prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. Our unaudited consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in PREIT’s Annual Report on Form 10-K for the year ended December 31, 2021. In our opinion, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, the consolidated results of our operations, consolidated statements of comprehensive loss, consolidated statements of equity and our consolidated statements of cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year.

PREIT, a Pennsylvania business trust founded in 1960 and one of the first equity real estate investment trusts (“REITs”) in the United States, has a primary investment focus on retail shopping malls located in the eastern half of the United States, primarily in the Mid-Atlantic region. As of March 31, 2022, our portfolio consists of a total of 25 properties operating in nine states, including 20 shopping malls, four other retail properties and one development property. The property in our portfolio that is classified as under development does not currently have any activity occurring.

We hold our interest in our portfolio of properties through our operating partnership, PREIT Associates, L.P. (“PREIT Associates” or the “Operating Partnership”). We are the sole general partner of the Operating Partnership and, as of March 31, 2022, we held a 98.7% controlling interest in the Operating Partnership and consolidated it for reporting purposes. The presentation of consolidated financial statements does not itself imply that the assets of any consolidated entity (including any special-purpose entity formed for a particular project) are available to pay the liabilities of any other consolidated entity, or that the liabilities of any consolidated entity (including any special-purpose entity formed for a particular project) are obligations of any other consolidated entity.

Pursuant to the terms of the partnership agreement of the Operating Partnership, each of the limited partners has the right to redeem such partner’s units of limited partnership interest in the Operating Partnership (“OP Units”) for cash or, at our election, we may acquire such OP Units in exchange for our common shares on a one-for-one basis, in some cases beginning one year following the respective issue date of the OP Units and in other cases immediately. If all of the outstanding OP Units held by limited partners had been redeemed for cash as of March 31, 2022, the total amount that would have been distributed would have been $0.6 million based on the number of outstanding OP Units held by limited partners of 1,030,510 as of March 31, 2022. The current terms of our credit agreements prohibit the Company from acquiring whole share OP Units for cash and, as such, any whole share OP Units presented for redemption will be redeemed for shares. Partial share OP Unit redemptions will be redeemed for cash.

We provide management, leasing and real estate development services through two of our subsidiaries: PREIT Services, LLC (“PREIT Services”), which generally develops and manages properties that we consolidate for financial reporting purposes, and PREIT-RUBIN, Inc. (“PRI”), which generally develops and manages properties that we do not consolidate for financial reporting purposes, including properties owned by partnerships in which we own an interest, and properties that are owned by third parties in which we do not have an interest. PREIT Services and PRI are consolidated. PRI is a taxable REIT subsidiary, as defined by federal tax laws, which means that it is able to offer an expanded menu of services to tenants without jeopardizing our continuing qualification as a REIT under federal tax law.

We evaluate operating results and allocate resources on a property-by-property basis, and do not distinguish or evaluate our consolidated operations on a geographic basis. Due to the nature of our operating properties, which involve retail shopping, dining, entertainment and certain non-traditional tenant operations, we have concluded that our individual properties have similar economic characteristics and meet all other aggregation criteria. Accordingly, we have aggregated our individual properties into one reportable segment. In addition, no single tenant accounts for 10% or more of consolidated revenue, and none of our properties are located outside the United States.

COVID-19 Related Risks and Uncertainties

The COVID-19 global pandemic that began in 2020 has adversely impacted and continues to impact our business, financial condition, liquidity and operating results, as well as our tenants’ businesses. The prolonged evolution of the pandemic has also led to periods of unprecedented global economic disruption and volatility in financial markets. Some of our tenants’ financial health and business viability have been adversely impacted and their creditworthiness has deteriorated. We anticipate that our future business, financial condition, liquidity and results of operations, including in 2022 and potentially in future periods, will continue to be materially impacted by the COVID-19 pandemic. Although

7

we have operated in the COVID-19 environment for approximately two years, uncertainty remains as to how long the global pandemic, economic challenges and various limitations and disruptions to business operations will continue to impact us or our tenants.

COVID-19 closures of our properties began on March 12, 2020 and continued through the reopening of our last property on July 3, 2020; all of our properties have remained open since that time and are employing safety and sanitation measures designed to address the risks posed by COVID-19. Despite the increased vaccination rates in the country, some of our tenants are still operating at reduced capacity. The significance of the prolonged pandemic on our business, however, will continue to depend on, among other things, the resurgences of outbreaks, the severity of the disease and the number of people infected with the virus, and certain variants thereof, vaccination rates in regions in which our properties are located, further effects on the economy of the pandemic and of the measures taken by governmental authorities and other third parties restricting daily activities and the length of time that such measures remain in place or are renewed, implementation of governmental programs to assist businesses and consumers impacted by the COVID-19 pandemic, and the effect of any changes to current restrictions or recommended protocols, all of which could vary by geographic region in which our properties are located. We continue to experience uncertainty as to whether government authorities will maintain the relaxation of current restrictions on businesses in the regions in which our properties are located, and whether government authorities will issue recommendations or impose requirements on landlords like us to further enhance health and safety protocols, or whether we will voluntarily adopt any of these requirements ourselves, which could result in increased operating costs and demands on our property management teams to ensure compliance with any of these requirements.

Going Concern Considerations

Under the accounting guidance related to the presentation of financial statements, when preparing financial statements for each annual and interim reporting period, management has the responsibility to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. As a result of the considerations articulated below, we believe there is substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued.

In applying the accounting guidance, management considered our current financial condition and liquidity sources, including current funds available, forecasted future cash flows and our conditional and unconditional obligations due over the next twelve months. Management specifically considered Fashion District Philadelphia’s Amended and Restated Term Loan Agreement (“FDP Loan Agreement”), which matures in January 2023 and includes a quarterly covenant provision as an event or condition that raises substantial doubt about our ability to continue as a going concern.

The FDP Loan Agreement has a balance of $194.6 million at March 31, 2022, and matures in January 2023, with an option to extend maturity to January 2024. This agreement also contains a 10% quarterly debt yield covenant which began on December 31, 2021. As of December 31, 2021, the FDP joint venture entity borrower, PM Gallery L.P., did not meet the minimum 10% debt yield covenant, which triggered the lender to sweep cash from the property. This is not an event of default. As of June 30, 2022, the debt yield covenant threshold will be 9%, subsequent to which the joint venture would be required to pay down the term loan to achieve a 9% debt yield. Based on the joint venture’s current forecast, management projects that the joint venture will not be able to meet this covenant as the debt yield is projected to be under 9%. To the extent the term loan is not paid down by the joint venture, this term loan could become due and payable during the second half of 2022. The Company guarantees 50% of the joint venture’s obligations under the FDP Loan Agreement and management projects that the Company would not be able to satisfy its obligations if the FDP term loan would become due and payable in 2022. The Company plans to work with its joint venture partner to satisfy any obligations coming due under the FDP Loan Agreement should it become due and payable as a result of the joint venture not meeting the debt yield covenant.

However, our ability to satisfy obligations under the FDP Loan Agreement depends primarily on management’s ability to obtain relief from the joint venture’s lender in regard to the Company’s guarantee of 50% of the outstanding debt balance. Obtaining relief from the FDP Loan Agreement lender involves performance by third parties and therefore cannot be considered probable of occurring. Therefore, due to the inherent risks, unknown results and significant uncertainties associated with this matter and the direct correlation to our ability to satisfy our financial obligations that may arise over the applicable twelve month period, we are unable to conclude that it is probable that we will be able to meet our obligations arising within twelve months of the date of issuance of these financial statements under the parameters set forth in this accounting guidance.

Fair Value

Fair value accounting applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements. Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, these accounting requirements establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the

8

reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access.

Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs might include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs for the asset or liability, and are typically based on an entity’s own assumptions, as there is little, if any, related market activity.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We utilize the fair value hierarchy in our accounting for derivatives (Level 2) and financial instruments (Level 2) and in our reviews for impairment of real estate assets (Level 3) and goodwill (Level 3).

Impairment of Assets

Real estate investments and related intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the property might not be recoverable, which is referred to as a “triggering event.” During the first quarter of 2022, certain of our properties had triggering events due to various indicators of impairment, however, based on our assessment of the undiscounted future cash flows, we did not identify any impairments. In connection with our review of our long-lived assets for impairment, we utilize qualitative and quantitative factors in order to estimate fair value. The significant qualitative factors that we use include age and condition of the property, market conditions in the property’s trade area, competition with other shopping centers within the property’s trade area and the creditworthiness and performance of the property’s tenants. The significant quantitative factors that we use include historical and forecasted financial and operating information relating to the property, such as net operating income, estimated holding periods, occupancy statistics, vacancy projections and tenants’ sales levels.

If there is a triggering event in relation to a property to be held and used, we will estimate the aggregate future cash flows, net of estimated capital expenditures, to be generated by the property, undiscounted and without interest charges. In addition, this estimate may consider a probability weighted cash flow estimation approach when alternative courses of action to recover the carrying amount of a long-lived asset are under consideration or when a range of possible values is estimated.

The determination of undiscounted cash flows requires significant estimates by our management, including the expected course of action at the balance sheet date that would lead to such cash flows. Subsequent changes in estimated undiscounted cash flows arising from changes in the anticipated action to be taken with respect to the property could affect the determination of whether an impairment exists, and the effects of such changes could materially affect our net income. If the estimated undiscounted cash flows are less than the carrying value of the property, the carrying value is written down to its fair value. We intend to hold and operate our properties long-term, which reduces the likelihood that our carrying value is not recoverable. A shortened holding period would increase the likelihood that the carrying value is not recoverable.

Assessment of our ability to recover certain lease-related costs must be made when we have a reason to believe that a tenant might not be able to perform under the terms of the lease as originally expected. This requires us to make estimates as to the recoverability of such costs.

An other-than-temporary impairment of an investment in an unconsolidated joint venture is recognized when the carrying value of the investment is not considered recoverable based on evaluation of the severity and duration of the decline in value. To the extent impairment has occurred, the excess carrying value of the asset over its estimated fair value is recorded as a reduction to income.

Assets Classified as Held for Sale

The determination to classify an asset as held for sale requires significant estimates by us about the property and the expected market for the property, which are based on factors including recent sales of comparable properties, recent expressions of interest in the property, financial metrics of the property and the physical condition of the property. We must also determine if it will be possible under those market conditions to sell the property for an acceptable price within one year. When assets are identified by our management as held for sale, we discontinue depreciating the assets and estimate the sales price, net of selling costs, of such assets. We generally consider operating properties to be held for sale when they meet criteria such as whether the sale transaction has been approved by the appropriate level of management and there are no known material contingencies relating to the sale such that the sale is probable and is expected to qualify for recognition as a completed sale within one year. If the expected net sales price of the asset that has been identified as held for sale is less than the net book value of the asset, the asset is written down to fair value less the cost to sell. Assets and liabilities related to assets classified as held for sale are presented separately in the consolidated balance sheets. If we determine that a property no longer meets the held-for-sale criteria, we reclassify the property’s assets and liabilities to their original locations on the consolidated balance sheet and record depreciation and amortization expense for the period that the property was in held-for-sale status.

9

As of March 31, 2022, we determined that two of our hotel land parcels, three of our multifamily land parcels, one vacant anchor box space and one retail property met the criteria to be classified as held for sale. As of December 31, 2021, we determined that two of our hotel land parcels, two of our multifamily land parcels and a vacant anchor box space met the criteria to be classified as held for sale.

Share-Based Compensation

On March 4, 2022, the Company approved the 2022-2024 Equity Award Program design (the “Program”). Having approved the Program, the Company made long term incentive plan awards in the form of performance-based restricted share units (“PSUs”) and time-based restricted share units (“RSUs”) consisting of 4,838,184 RSUs and 3,548,708 PSUs. The grants of PSUs and RSUs were made pursuant to the Company’s Amended and Restated 2018 Equity Incentive Plan (as amended, the “2018 Equity Incentive Plan”). The settlement of RSUs or PSUs may be made in cash or shares as determined by the Executive Compensation and Human Resources Committee. As such, these awards are accounted for as liability awards and remeasured at fair value each reporting period. The liability for these awards is included in accrued expenses and other liabilities in the consolidated balance sheets and compensation cost is recorded ratably over the respective vesting periods.

Under the Program, the number of common shares to be issued by the Company with respect to the PSUs, if any, depends on the Company’s achievement of certain specified operating performance measures and a modification based on total shareholder return (“TSR”) for the three-year period beginning January 1, 2022 and ending on the earlier of December 31, 2024 or the date of a change in control of the Company (the “Measurement Period”).

The preliminary number of common shares to be issued by the Company with respect to the PSUs awarded is based on a multiple determined by achievement of certain specified operating performance measures during the Measurement Period. These performance measures, the three-year core mall sales per square foot, three-year average quarterly core mall total occupancy and the three-year corporate debt yield, are each weighted 33.3%. The Committee approved minimum, target and maximum performance levels for both measures. For all participants, the minimum performance level will have a 0.5 multiplier, the target performance level will have a 1.0 multiplier and the maximum performance level will have a 2.0 multiplier. The preliminary number of common shares to be issued by the Company as determined under the operating performance goals will be adjusted, upwards or downwards, depending on the Company’s TSR performance over the Measurement Period relative to the TSR performance of other real estate investment trusts comprising a leading index of retail real estate investment trusts. Dividends, if any, on the Company’s common shares are deemed to be paid with respect to PSUs and credited to the PSU accounts and applied to “acquire” more PSUs at the 20-day average closing price per common share ending on the dividend payment date.

With respect to the portion of the long-term incentive awards made in the form of RSUs, the RSUs generally will vest in three equal annual installments for all grants except director grants and two equal installments for the Company’s directors commencing on March 4, 2023, subject to continued employment. During the period that the RSUs have not vested, the holder will have no rights as a shareholder with respect to the RSUs; however, dividends, if any, on the Company’s common shares are deemed to be paid with respect to RSUs and credited to the RSU accounts and applied to “acquire” more RSUs at the 20-day average closing price per common share ending on the dividend payment date.

New Accounting Developments

In October 2021, the FASB issued ASU 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805), which provides amendments to address diversity and inconsistency related to the recognition and measurement of contract assets and liabilities acquired in a business combination. Amendments require that an acquirer recognize and measure contract assets/liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. While this standard is not in effect at this time, the Company will evaluate and implement if applicable.

2. REAL ESTATE ACTIVITIES

Investments in real estate as of March 31, 2022 and December 31, 2021 were comprised of the following:

(in thousands of dollars)	March 31, 2022			December 31, 2021
Buildings, improvements and construction in progress	$	2,740,712		$	2,762,675
Land, including land held for development		422,509			443,686
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

10

Capitalization of Costs

The following table summarizes our capitalized interest, compensation, including commissions, and real estate taxes for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
(in thousands of dollars)	2022		2021
Development/Redevelopment Activities:
Interest (1)	$	24	$	130
Compensation		46		37
Real estate taxes		—		29
Leasing Activities:
Compensation, including commissions (2)		29		—

(1) Includes interest capitalized on investments in partnerships under development.

(2) The definition of initial direct costs under ASC 842 includes only those incremental costs of a lease that would not have been incurred if the lease had not been obtained. Commissions paid for successful leasing transactions continue to be capitalized.

Impairment of Assets

Exton Square Mall

In conjunction with the preparation of our 2021 annual financial statements, we identified a triggering event at Exton Square Mall in Exton, Pennsylvania as a result of our determination to decrease the holding period of the property. This led us to conduct an analysis of possible impairment at the property and, during the year ended December 31, 2021, we recorded a loss on impairment of assets of approximately $8.4 million. In March 2022, we executed a purchase and sale agreement for Exton Square Mall for $27.5 million, which includes an initial amount of $8.0 million towards the residential land parcel that is under contract. As a result, Exton Square Mall met the criteria to be classified as held for sale as of March 31, 2022.

Disposition

Valley View Mall Derecognition

In August 2020, a court order assigned a receiver to operate Valley View Mall in La Crosse, Wisconsin on behalf of the lender of the mortgage loan secured by the property. Although we have not yet conveyed the property because foreclosure proceedings are ongoing, we no longer control or operate the property as a result of court order assigning the receiver. In September 2020, a court order was issued to conduct a foreclosure sale of the property and as a result we have no further operating liabilities from the property. As a result of our loss of control of the property, we derecognized the property and recorded an offsetting contract asset and recognized a gain on derecognition of property of $8.1 million in the consolidated statement of operations for the year ended December 31, 2020. The contract asset is included in deferred costs and other assets, net in the consolidated balance sheets as of March 31, 2022 and December 31, 2021. The mortgage principal balance was $27.2 million at March 31, 2022 and December 31, 2021, which we continue to recognize until the foreclosure process is completed. The derecognition of Valley View Mall and its related assets was a non-cash conversion of assets, which had no impact on the Company’s cash flows. In May 2022, the foreclosure proceedings were completed.

Other Property Disposition

In February 2022, we completed the redemption of preferred equity issued as part of a previous sale of our New Garden land parcel. In connection with this settlement, we received approximately $2.5 million, which funds were used to pay down our First Lien Revolving Facility and First Lien Term Loan. In connection with this transaction, we recorded a gain on sale of preferred equity of $3.7 million in the three months ended March, 31 2022.

11

3. INVESTMENTS IN PARTNERSHIPS

The following table presents summarized financial information of the equity investments in our unconsolidated partnerships as of March 31, 2022 and December 31, 2021:

_____________________

(in thousands of dollars)	March 31, 2022			December 31, 2021
ASSETS:
Investments in real estate, at cost:
Operating properties	$	850,817		$	847,560
Construction in progress		3,534			6,456
Total investments in real estate		854,351			854,016
Accumulated depreciation		(252,849	)		(247,133	)
Net investments in real estate		601,502			606,883
Cash and cash equivalents		66,294			59,004
Deferred costs and other assets, net		155,722			155,247
Total assets		823,518			821,134
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		491,957			493,904
FDP Term Loan, net		194,602			194,602
Partnership Loan		118,560			115,543
Other liabilities		145,691			141,619
Total liabilities		950,810			945,668
Net investment		(127,292	)		(124,534	)
Partners’ share		(63,893	)		(62,771	)
PREIT’s share		(63,399	)		(61,763	)
Excess investment (1)		6,804			6,718
Net investments and advances	$	(56,595	)	$	(55,045	)
Investment in partnerships, at equity	$	12,749		$	16,525
Distributions in excess of partnership investments		(69,344	)		(71,570	)
Net investments and advances	$	(56,595	)	$	(55,045	)

(1)Excess investment represents the unamortized difference between our investment and our share of the equity in the underlying net investment in the unconsolidated partnerships. The excess investment is amortized over the life of the properties, and the amortization is included in “Equity in loss of partnerships.”

We record distributions from our equity investments using the nature of the distribution approach.

12

The following table summarizes our share of equity in (loss) income of partnerships for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
(in thousands of dollars)	2022			2021
Real estate revenue	$	29,889		$	24,900
Expenses:
Property operating and other expenses		(11,874	)		(13,739	)
Interest expense (1)		(11,754	)		(10,704	)
Depreciation and amortization		(6,655	)		(6,930	)
Total expenses		(30,283	)		(31,373	)
Net loss		(394	)		(6,473	)
Less: Partners’ share		(1	)		3,096
PREIT’s share		(395	)		(3,377	)
Amortization of excess investment		-			(56	)
Equity in loss of partnerships	$	(395	)	$	(3,433	)

(1) Net of capitalized interest expense of $0 and $103 for the three months ended March 31, 2022 and 2021, respectively.

Fashion District Philadelphia

FDP Loan Agreement

PM Gallery LP, a Delaware limited partnership and joint venture entity owned indirectly by us and The Macerich Company (“Macerich”), previously entered into a $250.0 million term loan in January 2018 (as amended in July 2019 to increase the total maximum potential borrowings to $350.0 million) to fund the ongoing redevelopment of Fashion District Philadelphia and to repay capital contributions to the venture previously made by the partners. A total of $51.0 million was drawn during the third quarter of 2019 and we received aggregate distributions of $25.0 million as our share of the draws. On December 10, 2020, PM Gallery LP, together with certain other subsidiaries owned indirectly by us and Macerich (including the fee and leasehold owners of the properties that are part of the Fashion District Philadelphia project), entered into an Amended and Restated Term Loan Agreement (the “FDP Loan Agreement”). In connection with the execution of the FDP Loan Agreement, a $100.0 million principal payment was made (and funded indirectly by Macerich, the “Partnership Loan”) to pay down the existing loan, reducing the outstanding principal under the FDP Loan Agreement from $301.0 million to $201.0 million. The joint venture must repay the Partnership Loan plus 15% accrued interest to Macerich, in its capacity as the lender, prior to the resumption of 50/50 cash distributions to the Company and its joint venture partner.

The FDP Loan Agreement provides for (i) a maturity date of January 22, 2023, with the potential for a one-year extension upon the borrowers’ satisfaction of certain conditions, (ii) an interest rate at the borrowers’ option with respect to each advance of either (A) the Base Rate (defined as the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50%, and (c) the LIBOR Market Index Rate plus 1.00%) plus 2.50% or (B) LIBOR for the applicable period plus 3.50%, (iii) a full recourse guarantee of 50% of the borrowers’ obligations by PREIT Associates, L.P., on a several basis, (iv) a full recourse guarantee of certain of the borrowers’ obligations by The Macerich Partnership, L.P., up to a maximum of $50.0 million, on a several basis, (v) a pledge of the equity interests of certain indirect subsidiaries of PREIT and Macerich, as well as of PREIT-RUBIN, Inc. and one of its subsidiaries, that have a direct or indirect ownership interest in the borrowers, (vi) a non-recourse carve-out guaranty and a hazardous materials indemnity by each of PREIT Associates, L.P. and The Macerich Partnership, L.P., and (vii) mortgages of the borrowers’ fee and leasehold interests in the properties that are part of the Fashion District Philadelphia project and certain other properties. The FDP Loan Agreement contains certain covenants typical for loans of its type. We anticipate that the joint venture will not meet certain financial covenants applicable under the FDP Loan Agreement during 2022. See Going Concern Considerations section in Note 1.

Joint Venture

In connection with the execution of the FDP Loan Agreement, the governing structure of PM Gallery LP was modified such that, effective as of January 1, 2021, Macerich is responsible for the entity’s operations and, subject to limited exceptions, controls major decisions. The Company considered the changes to the governing structure of PM Gallery LP and determined the investment qualifies as a variable interest entity and will continue to be accounted for under the equity method of accounting. Our maximum exposure to losses is limited to the extent of our investment, which is a 50% ownership.

Mortgage Loan Activity

Gloucester Premium Outlets

On March 1, 2022, the Company’s unconsolidated subsidiary exercised its one-year extension option of its mortgage loan securing its property at Gloucester Premium Outlets. The $86.0 million loan maturing on March 1, 2023 has a variable interest rate.

Pavilion at Market East

13

During the three months ended March 31, 2021, the Company’s unconsolidated subsidiary received an extension of its mortgage securing Pavilion at Market East for an additional three months to May 2021. On May 25, 2021, the Company’s unconsolidated subsidiary completed a refinance of its mortgage loan securing its property at Pavilion at Market East. The $7.6 million mortgage has a 2-year term, maturing in May 2023. The loan has interest only payments until May 2022 at a variable rate of the greater of (a) one month LIBOR plus 3.5% or (b) 4.0%.

4. FINANCING ACTIVITY

Credit Agreements

On December 10, 2020 we entered into two secured credit agreements (collectively, as amended, the “Credit Agreements”): (a) an Amended and Restated First Lien Credit Agreement (the “First Lien Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo Bank”) and the other financial institutions signatory thereto and their assignees, for secured loan facilities consisting of: (i) a secured first lien revolving credit facility allowing for borrowings up to $130.0 million, including a sub-facility for letters of credit to be issued thereunder in an aggregate stated amount of up to $10.0 million (collectively, the “First Lien Revolving Facility”), and (ii) a $384.5 million secured first lien term loan facility (the “First Lien Term Loan Facility”), and (b) a Second Lien Credit Agreement (the “Second Lien Credit Agreement”), as amended February 8, 2021 with Wells Fargo Bank and the other financial institutions signatory thereto and their assignees for a $535.2 million secured second lien term loan facility (the “Second Lien Term Loan Facility”). The Credit Agreements mature in December 2022. The First Lien Term Loan Facility and the Second Lien Term Loan Facility are collectively referred to as the “Term Loans.” The Credit Agreements refinanced our previously existing secured term loan under the Credit Agreement dated as of August 11, 2020 (as amended, the “Bridge Credit Agreement”), our Seven-Year Term Loan Agreement entered into on January 8, 2014 (as amended, the “7-Year Term Loan”), and our 2018 Amended and Restated Credit Agreement entered into on May 24, 2018 (as amended, the “2018 Credit Agreement” and collectively with the Bridge Credit Agreement and the 7-Year Term Loan, the “Restructured Credit Agreements”). Upon our entry into the Credit Agreements, the Bridge Credit Agreement, the 7-Year Term Loan and the 2018 Credit Agreement were cancelled.

As of March 31, 2022, we had borrowed $976.5 million under the Term Loans and $53.8 million under the First Lien Revolving Facility. The carrying value of the Term Loans on our consolidated balance sheet as of March 31, 2022 is net of $4.8 million of unamortized debt issuance costs. The maximum amount that was available to us under the First Lien Revolving Facility as of March 31, 2022 was $76.2 million.

On April 13, 2021, we entered into Agency Resignation, Appointment, Acceptance and Waiver Agreements pursuant to which Wells Fargo Bank resigned as Administrative Agent and Wilmington Savings Fund Society, FSB was appointed successor Administrative Agent under the First Lien Credit Agreement, the Second Lien Credit Agreement and, in each case, the related loan documents. There is currently no successor letter of credit issuer under the First Lien Revolving Facility, accordingly, the Company cannot currently access the letters of credit sub-facility.

Interest expense and deferred financing fee amortization related to the Credit Agreements and the Restructured Credit Agreements for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended March 31,
(in thousands of dollars)	2022		2021
Revolving Facilities:
Interest expense (1)	$	541	$	548
Deferred financing amortization		299		299
Term Loans:
Interest expense (2)		20,448		20,421
Deferred financing amortization		1,784		1,780

(1)All of the expense applied to the First Lien Revolving Facility.

(2)All of the expense applied to the Term Loans, of which $12.5 million and $11.5 million, for March 31, 2022 and March 31, 2021, respectively, was for the Second Lien term Loan Facility and was not paid in cash, but capitalized to the principal balance of the loan.

Our obligations under the Credit Agreements are guaranteed by certain of our subsidiaries. Our obligations under the Credit Agreements and the guaranties are secured by mortgages and deeds of trust on a portfolio of 12 of our subsidiaries’ properties, including nine malls and three additional parcels. The obligations are further secured by a lien on substantially all of our personal property pursuant to collateral agreements and a pledge of substantially all of the equity interests held by us and the guarantors, pursuant to pledge agreements, in each case subject to limited exceptions.

The Credit Agreements each provide for a two-year maturity of December 2022 (the “Maturity Date”), subject to a one-year extension to December 2023 at the borrowers’ option, subject to (i) minimum liquidity of $35.0 million, (ii) a minimum corporate debt yield of 8.0%, (iii) a maximum loan-to-value ratio of 105% for the total first lien and second lien loans and letters of credit and the Borrowing Base Properties as determined by an appraisal and (iv) no default or event of default existing and our representations and warranties being true in all material respects. The loans under the Credit Agreements are repayable in full on the Maturity Date, subject to mandatory prepayment provisions in the event of certain events including asset sales, incurrence of indebtedness, issuances of equity and receipt of casualty insurance proceeds. The terms of our Credit Agreements place restrictions on, among other things, and subject to certain exceptions, our ability to make certain restricted payments (including payments of dividends), make certain types of investments and acquisitions, issue redeemable securities, incur

14

additional indebtedness, incur liens on our assets, enter into agreements with a negative pledge, make certain intercompany transfers, merge, consolidate, or sell our assets or the equity interests in our subsidiaries, amend our organizational documents or material contracts, enter into certain transactions with affiliates, or enter into derivatives contracts. Additionally, if we receive net cash proceeds from certain capital events (including equity issuances), we are required to prepay loans under our Credit Agreements. In addition, the Credit Agreements contain cross-default provisions that trigger an event of default if we fail to make certain payments or otherwise fail to comply with our obligations with respect to certain of our other indebtedness.

First Lien Credit Agreement

Amounts borrowed under the First Lien Credit Agreement may be either Base Rate Loans or LIBOR Loans. Base Rate Loans bear interest at the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) the LIBOR Market Index Rate plus 1.0%, provided that the Base Rate will not be less than 1.50% per annum, in each case plus (w) for revolving loans, 2.50% per annum, and (x) for term loans, 4.74% per annum. LIBOR Loans bear interest at LIBOR plus (y) for revolving loans, 3.50% per annum, and (z) for term loans, 5.74% per annum, in each case, provided that LIBOR will not be less than 0.50% per annum. Interest is due to be paid in cash on the last day of each applicable interest period (with rolling 30-day interest periods) and on the Maturity Date. We are required to pay certain fees to the administrative agent for the account of the lenders in connection with the First Lien Credit Agreement, including an unused fee for the account of the revolving lenders, which will accrue (i) 0.35% per annum on the daily amount of the unused revolving commitments when that amount is greater than or equal to 50% of the aggregate amount of revolving commitments, and (ii) 0.25% when that amount is less than 50% of the aggregate amount of revolving commitments. Accrued and unpaid unused fees will be payable quarterly in arrears during the term of the First Lien Credit Agreement and on the Revolving Termination Date (or any earlier date of termination of the revolving commitments or reduction of the revolving commitments to zero).

Letters of credit and the proceeds of revolving loans may be used (i) to refinance indebtedness under the Bridge Credit Agreement (which agreement was canceled and refinanced upon our entry into the Credit Agreements), (ii) for working capital and general corporate purposes (subject to certain exceptions set forth in the First Lien Credit Agreement, including limitations on investments in non-Borrowing Base Properties), and (iii) to fund professional fee payments and other fees and expenses subject to the provisions of the Plan and related confirmation order and for other uses permitted by the provisions of the First Lien Credit Agreement, Plan and confirmation order, in each case consistent with an approved annual business plan. We may terminate or reduce the amount of the revolving commitments at any time and from time to time without penalty or premium, subject to the terms of the First Lien Credit Agreement.

The First Lien Credit Agreement contains, among other restrictions, certain additional affirmative and negative covenants and other terms, many of which substantially align with those in the Second Lien Credit Agreement and are summarized below under “Similar Terms of the Credit Agreements.”

Second Lien Credit Agreement

Amounts borrowed under the Second Lien Credit Agreement may be either Base Rate Loans or LIBOR Loans. Base Rate Loans bear interest at the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) the LIBOR Market Index Rate plus 1.0%, provided that the Base Rate will not be less than 1.50% per annum, in each case plus 7.00% per annum. LIBOR Loans bear interest at LIBOR plus 8.00% per annum, provided that LIBOR will not be less than 0.50% per annum. Interest is due to be paid in kind on the last day of each applicable interest period (with rolling 30-day interest periods) by adding the accrued and unpaid amount thereof to the principal balance of the loans under the Second Lien Credit Agreement and then accruing interest on the increased principal amount (provided that after the discharge of our Senior Debt Obligations, interest will be paid in cash). We are required to pay certain fees to the administrative agent for the account of the lenders in connection with the Second Lien Credit Agreement.

The proceeds of loans under the Second Lien Credit Agreement may only be used to refinance existing indebtedness under the 2018 Credit Agreement and the 7-Year Term Loan.

The Second Lien Credit Agreement contains, among other restrictions, certain additional affirmative and negative covenants and other terms, many of which substantially align with those in the First Lien Credit Agreement and are summarized below under “Similar Terms of the Credit Agreements.”

On February 8, 2021, the Company entered into the first amendment to the Second Lien Credit Agreement (“First Amendment”). The First Amendment provided for elimination of approximately $5.3 million of the disputed default interest that was capitalized into the principal balance of the Second Lien Term Loan Facility on the effective date thereof, reducing the outstanding principal amount of loans outstanding under the Second Lien Credit Agreement, retroactively, as of December 10, 2020, to $535.2 million. The First Amendment also eliminated the disputed PIK interest that was capitalized through the date of the amendment.

Similar Terms of the Credit Agreements

15

Each of the Credit Agreements contains certain affirmative and negative covenants and other provisions, as described in detail below, which substantially align with those contained in the other Credit Agreements.

Covenants

Each of the Credit Agreements contains, among other restrictions, certain affirmative and negative covenants, including, without limitation, requirements that we:

•maintain liquidity of at least $25.0 million, to be comprised of unrestricted cash held in certain deposit accounts subject to control agreements, up to $5.0 million held in a certain other deposit account excluded from the collateral, the unused revolving loan commitments under the First Lien Credit Agreement (to the extent available to be drawn), and amounts on deposit in a designated collateral proceeds account and amounts on deposit in a cash collateral account;

•maintain a minimum senior debt yield of 11.35% from and after June 30, 2021;

•maintain a minimum corporate debt yield of (a) 6.50% from June 30, 2021 through and including September 30, 2021 and (b) 7.25% from and after October 1, 2021;

•provide to the administrative agent, among other things, PREIT and its subsidiaries’ quarterly and annual financial statements, annual budget, reports on projected sources and uses of cash, and an updated annual business plan, as well as quarterly and annual operating statements, rent rolls, and certain other collections and tenant reports and information as the administrative agent may reasonably request with respect to each Borrowing Base Property;

•maintain PREIT’s status as a REIT;

•use commercially reasonable efforts to obtain subordination, non-disturbance and attornment agreements from each tenant under certain Major Leases as well as ground lease estoppel certificates from each ground lessor of a Borrowing Base Property;

•comply with the requirements of the various security documents and, at the administrative agent’s request, promptly notify the administrative agent of any acquisition of any owned real property that is not subject to a mortgage and grant liens on such real property to secure our obligations under the applicable Credit Agreement;

•not amend any existing sale agreements with respect to Borrowing Base Properties to result in a reduction of cash consideration by 20% or more; and

•not retain more than $6.5 million of cash in property-level accounts held by our subsidiaries that are owners of real property (subject to certain exceptions).

Each of the Credit Agreements also limits our ability, subject to certain exceptions, to make certain restricted payments (including payments of dividends and voluntary prepayments of certain indebtedness which includes, with respect to the First Lien Credit Agreement, voluntary prepayments under the Second Lien Credit Agreement), make certain types of investments and acquisitions, issue redeemable securities, incur additional indebtedness, incur liens on our assets, enter into agreements with a negative pledge, make certain intercompany transfers, merge, consolidate or sell all or substantially all of our assets or the equity interests in our subsidiaries, amend our organizational documents or material contracts, enter into transactions with affiliates, or enter into derivatives contracts. We are also prohibited from selling certain properties unless certain conditions are satisfied with respect to the terms of the sale agreement for such property or, in the case of Borrowing Base Properties, payment of certain release prices.

The First Lien Credit Agreement and, after our Senior Debt Obligations are discharged, the Second Lien Credit Agreement, each prohibit us from (i) entering into Major Leases, (ii) assigning leases, (iii) discounting any rent under leases where the leased premises is at least 7,500 square feet at a Borrowing Base Property and the discounted amount is more than $750,000 and more than 25% of the aggregate contractual base rent payable over the initial term (not including any extension options), (iv) collecting rent in advance, (v) terminating or modifying the terms of any Major Lease or releasing or discharging tenants from any obligations thereunder, (vi) consenting to a tenant’s assignment or subletting of a Major Lease, or (vii) subordinating any lease to any other deed of trust, mortgage, deed to secure debt or encumbrance, other than the mortgages already encumbering the applicable Borrowing Base Property and the mortgages entered into in connection with the other Credit Agreement. Under the First Lien Credit Agreement, and under the Second Lien Credit Agreement after the First Lien Termination Date, any amounts equal to or greater than $2.5 million but less than $3.5 million received by or on behalf of a guarantor in consideration of any termination or modification of a lease (or the release or discharge of a tenant) are subject to restrictions on use, and such amounts that are equal to or greater than $3.5 million must be applied to reduce our outstanding obligations under the applicable Credit Agreement.

As of March 31, 2022, we were in compliance with all financial covenants under the Credit Agreements.

Restructured Credit Agreements

Prior to completion of the Financial Restructuring, we had entered into three credit agreements: (1) the 2018 Credit Agreement, which included (a) the $375.0 million 2018 Revolving Facility (“Restructured Revolver”), and (b) the $300.0 million 2018 Term Loan Facility, (2) the $250.0 million 2014 7-Year Term Loan, and (3) the Bridge Credit Agreement. Throughout 2020, we entered into various amendments to the Restructured Credit Agreements. On August 11, 2020, we entered into the Bridge Credit Agreement which provided for up to $30.0 million of additional borrowings and an original maturity date of September 30, 2020. On September 30, 2020, we amended our Restructured Credit Agreements to, among other things, extend the maturity date of the Bridge Credit Agreement until October 31, 2020 and to provide for the ability to request additional commitments of up to $25.0 million under our Bridge Credit Agreement. The September 2020 amendments also eliminated the minimum liquidity requirement under each of the Restructured Credit Agreements. We also amended the Bridge Credit Agreement on October 16, 2020 to, among other things, increase the aggregate amount of commitments under the Bridge Credit Agreement by

16

$25.0 million. As of November 1, 2020, we had borrowed $590.0 million available under the Restructured Credit Agreements, including $55.0 million under our Bridge Credit Agreement and the full $375.0 million under the 2018 Revolving Facility. The Restructured Credit Agreements contained certain affirmative and negative covenants, several of which were amended on March 30, 2020. Pursuant to amendments dated July 27, 2020, some of those covenants were suspended for the duration of the suspension period, as extended by the September 30, 2020 amendments. As such, the Restructured Credit Agreements, as amended, restricted our ability to declare and pay dividends on our common shares and preferred shares for the duration of the Suspension Period. The filing of the chapter 11 cases constituted an event of default under the Restructured Credit Agreements. Upon our entry into the Credit Agreements, the Bridge Credit Agreement, the 7-Year Term Loan and the 2018 Credit Agreement were cancelled.

Consolidated Mortgage Loans

The estimated fair values of our consolidated mortgage loans based on year-end interest rates and market conditions at March 31, 2022 and December 31, 2021 were as follows:

	March 31, 2022				December 31, 2021
(in millions of dollars)	Carrying Value		Fair Value		Carrying Value		Fair Value
Mortgage loans(1)	$	846.5	$	832.7	$	852.5	$	846.6

(1) The carrying value of mortgage loans includes unamortized debt issuance costs of $1.5 million and $1.2 million as of March 31, 2022 and December 31, 2021, respectively.

The consolidated mortgage loans contain various customary default provisions. As of March 31, 2022, we were not in default on any of the consolidated mortgage loans, except for our mortgage secured by Valley View Mall.

Mortgage Loan Activity

Woodland Amendment

On December 10, 2021, certain of our consolidated subsidiaries entered into an amendment to our mortgage loan secured by the property at Woodland Mall in Grand Rapids, Michigan, which provides for an extension of the maturity date until December 10, 2022. The Company capitalized $0.3 million of lender fees as additional debt issuance costs in connection with the amendment.

Forbearance Agreements

During 2020, we executed forbearance and loan modification agreements for Cherry Hill Mall, Cumberland Mall, Dartmouth Mall, Francis Scott Key Mall, Viewmont Mall, and Woodland Mall. These arrangements allowed us to defer principal payments, and in some cases interest as well, between May and August 2020 depending on the terms of each agreement. At the end of the deferral period, repayment of deferred amounts spanned from four to six months. The repayment periods ranged from August 2020 through February 2021 pursuant to the terms of the specific agreements. Certain of these forbearance and loan modification agreements also imposed certain additional informational reporting requirements during the applicable modification periods. As of March 31, 2022, we had repaid all principal and interest deferrals.

5. CASH FLOW INFORMATION

We consider all highly liquid short-term investments with a maturity of three months or less at purchase or acquisition to be cash equivalents.

At March 31, 2022 and 2021, cash and cash equivalents and restricted cash totaled $61.1 million and $53.9 million, respectively, and

included tenant security deposits of $1.7 million and $1.4 million, respectively.

Cash paid for interest was $16.5 million and $16.3 million for the three months ended March 31, 2022 and 2021, respectively, net of amounts capitalized of $24 thousand and $0.1 million, respectively.

In our statement of cash flows, we report cash flows on our revolving facilities on a net basis. Aggregate repayments on our First Lien Revolving Facility and Term Loan were $0.7 million and $1.7 million, respectively, for the three months ended March 31, 2022. We had no borrowings or repayments on our First Lien Revolving Facility for the three months ended March 31, 2021.

Accrued construction costs decreased by $3.8 million and increased by $0.3 million for the three months ended March 31, 2022 and 2021, respectively, representing non-cash changes in investment in real estate and construction in progress.

The following table provides a summary of cash, cash equivalents, and restricted cash reported within the statement of cash flows as of March 31, 2022 and 2021.

	March 31,
(in thousands of dollars)	2022		2021
Cash and cash equivalents	$	45,554	$	44,637
Restricted cash included in other assets		15,547		9,279
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	61,101	$	53,916

Our restricted cash consists of cash held in escrow by banks for real estate taxes and other purposes.

17

6. DERIVATIVES

In the normal course of business, we are exposed to financial market risks, including interest rate risk on our interest bearing liabilities. We attempt to limit these risks by following established risk management policies, procedures and strategies, including the use of financial instruments such as derivatives. We do not use financial instruments for trading or speculative purposes.

Cash Flow Hedges of Interest Rate Risk

For derivatives that have been designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in “Accumulated other comprehensive (loss) income” and subsequently reclassified into “Interest expense, net” in the same periods during which the hedged transaction affects earnings. Through December 10, 2020, all of our derivatives were designated and qualified as cash flow hedges of interest rate risk.

On December 10, 2020 as a result of the Financial Restructuring, we de-designated seven of our interest rate swaps which were previously designated cash flow hedges against the 2018 Credit Facility and 7-year Term Loan, as the occurrence of the hedged forecasted transactions was no longer probable during the hedged time period due to the Financial Restructuring as described in Note 1. As such, the Company accelerated the reclassification of a portion of the amounts in other comprehensive (loss) income to earnings which resulted in a loss of $2.8 million that was recorded within interest expense, net in the consolidated statement of operations. Additionally, on December 10, 2020, the Company voluntarily de-designated the remaining thirteen interest swaps that were also previously designated as cash flow hedges against the 2018 Credit Facility and 7-year Term Loan. Upon de-designation, the accumulated other comprehensive (loss) income balance of each of these de-designated derivatives will be separately reclassified to earnings as the originally hedged forecasted transactions affect earnings. Through December 10, 2020, the changes in fair value of the derivatives were recorded to accumulated other comprehensive (loss) income in the consolidated balance sheets.

On December 22, 2020, we re-designated nine interest rate swaps with a notional amount of $375.0 million as cash flow hedges of interest rate risk against the First Lien Term Loan Facility. These interest rate swaps qualified for hedge accounting treatment with changes in the fair value of the derivatives recorded through accumulated other comprehensive (loss) income.

As of March 31, 2022, we had seven total derivatives which were designated as cash flow hedges.

We recognize all derivatives at fair value as either assets or liabilities in the accompanying consolidated balance sheets. Our derivative assets are recorded in “Deferred costs and other assets” and our derivative liabilities are recorded in “Fair value of derivative instruments.”

Over the next twelve months we estimate that $2.7 million will be reclassified as an increase to interest expense. The recognition of these amounts could be accelerated in the event that we repay amounts outstanding on the debt instruments and do not replace them with new borrowings.

Non-designated Hedges

Derivatives not designated as hedges are not speculative; they are also used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements. For swaps that were not re-designated subsequent to December 10, 2020, changes in the fair value of derivatives were recorded directly in earnings as interest expense in the consolidated statement of operations. During the three months ended March 31, 2021, we had four non-designated swaps mature. As of March 31, 2022, we had no derivatives which were not designated in hedging relationships.

Interest Rate Swaps

As of March 31, 2022, we had interest rate swap agreements designated in qualifying hedging relationships outstanding with a weighted average base interest rate of 2.70% on a notional amount of $300.0 million, maturing in May 2023. We originally entered into these interest rate swap agreements in order to hedge the interest payments associated with our issuances of variable interest rate long term debt. The interest rate swap agreements are net settled monthly.

The following table summarizes the terms and estimated fair values of our interest rate swap derivative instruments as of March 31, 2022 and December 31, 2021 based on the year they mature. The notional values provide an indication of the extent of our involvement in these instruments, but do not represent exposure to credit, interest rate or market risks.

Maturity Date	Aggregate Notional Value at March 31, 2022 (in millions of dollars)		Aggregate Fair Value at March 31, 2022 (1)  (in millions of dollars)			Aggregate Fair Value at December 31, 2021 (1)  (in millions of dollars)			Weighted Average Interest Rate
Derivatives in Cash Flow Hedging Relationships
Interest Rate Swaps
2023	$	300.0	$	(2.6	)	$	(8.1	)		2.70	%

18

(1)As of March 31, 2022 and December 31, 2021, derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy and we did not have any significant recurring fair value measurements related to derivative instruments using significant unobservable inputs (Level 3).

The tables below present the effect of derivative financial instruments on accumulated other comprehensive (loss) income and on our consolidated statements of operations for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Instruments				Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Interest Expense
(in millions of dollars)	2022		2021		2022		2021
Derivatives in Cash Flow Hedging Relationships
Interest rate products	$	3.9	$	0.2	$	1.9	$	2.4

	Three Months Ended March 31,
(in millions of dollars)	2022			2021
Total interest expense presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded	$	(31.4	)	$	(30.7	)
Amount of (loss) gain reclassified from accumulated other comprehensive income into interest expense	$	1.9		$	2.4

Credit-Risk-Related Contingent Features

We have agreements with some of our derivative counterparties that contain a provision pursuant to which, if our entity that originated such derivative instruments defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared to be in default on our derivative obligations. As of March 31, 2022, we were not in default on any of our derivative obligations.

We have an agreement with a derivative counterparty that incorporates the loan covenant provisions of our loan agreement with a lender affiliated with the derivative counterparty. Failure to comply with the loan covenant provisions would result in our being in default on any derivative instrument obligations covered by the agreement.

As of March 31, 2022, the fair value of derivatives in a liability position, which excludes accrued interest but includes any adjustment for nonperformance risk related to these agreements, was $2.6 million. If we had breached any of the default provisions in these agreements as of March 31, 2022, we might have been required to settle our obligations under the agreements at their termination value (including accrued interest) of $3.3 million. We had not breached any of these provisions as of March 31, 2022.

7. LEASES

As Lessee

We have entered into ground leases for portions of the land at Springfield Town Center and Plymouth Meeting Mall. We have also entered into an office lease for our headquarters location, as well as vehicle, solar panel and equipment leases as a lessee. The initial terms of these agreements generally range from three to 40 years, with certain agreements containing extension options for up to an additional 60 years. Upon lease execution, the Company measures a liability for the present value of future lease payments over the noncancelable period of the lease and any renewal option period we are reasonably certain of exercising. Certain agreements require that we pay a portion of reimbursable expenses such as CAM, utilities, insurance and real estate taxes. These payments are not included in the calculation of the lease liability and are presented as variable lease costs.

Our leases do not provide a readily determinable implicit interest rate; therefore, we estimate our incremental borrowing rate to calculate the present value of remaining lease payments. In determining our incremental borrowing rate, we considered the lease term, market interest rates and estimates regarding our implied credit rating using market data with adjustments to determine an appropriate incremental borrowing rate.

19

The following table presents additional information pertaining to the Company’s leases:

	Three Months Ended March 31,
	2022								2021
(in thousands of dollars)	Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total		Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	202	$	—	$	—	$	202	$	202	$	—	$	—	$	202
Interest on lease liabilities		78		—		—		78		63		—		—		63
Operating lease costs		—		585		68		653		—		436		311		747
Variable lease costs		—		46		206		252		—		45		63		108
Total lease costs	$	280	$	631	$	274	$	1,185	$	265	$	481	$	374	$	1,120

Other information related to leases as of and for the three months ended March 31, 2022 and 2021 are as follows:

(in thousands of dollars)	2022			2021
Cash paid for the amounts included in the measurement of lease liabilities
Operating cash flows used for finance leases	$	63		$	63
Operating cash flows used for operating leases	$	653		$	552
Financing cash flows used for finance leases	$	185		$	184
Weighted average remaining lease term-finance leases (months)		72			83
Weighted average remaining lease term-operating leases (months)		292			296
Weighted average discount rate-finance leases		4.34	%		4.35	%
Weighted average discount rate-operating leases		6.44	%		6.44	%

Future payments against lease liabilities, which are recorded in Accrued expenses and other liabilities, as of March 31, 2022 are as follows:

(in thousands of dollars)	Finance leases			Operating leases			Total
April 1 to December 31, 2022	$	740		$	1,951		$	2,691
2023		983			2,556			3,539
2024		949			2,471			3,420
2025		929			2,427			3,356
2026		925			2,429			3,354
Thereafter		1,148			48,658			49,806
Total undiscounted lease payments		5,674			60,492			66,166
Less imputed interest		(686	)		(31,147	)		(31,833	)
Total lease liabilities	$	4,988		$	29,345		$	34,333

As Lessor

As of March 31, 2022, the fixed contractual lease payments, including minimum rents and fixed CAM amounts, to be received over the next five years pursuant to the terms of noncancelable operating leases with initial terms greater than one year are included in the table below. The amounts presented assume that no leases are renewed and no renewal options are exercised. Additionally, the table does not include variable lease payments that may be received under certain leases for percentage rents or the reimbursement of operating costs, such as common area expenses, utilities, insurance and real estate taxes. These variable lease payments are recognized in the period when the applicable expenditures are incurred or, in the case of percentage rents, when the sales data is made available.

(in thousands of dollars)
April 1 to December 31, 2022	$	138,433
2023		167,308
2024		144,553
2025		115,992
2026		96,854
Thereafter		248,425
	$	911,565

20

8. COMMITMENTS AND CONTINGENCIES

Contractual Obligations

As of March 31, 2022, we had unaccrued contractual and other commitments related to our capital improvement projects and development projects of $4.1 million, including $0.6 million of commitments related to the redevelopment of Fashion District Philadelphia, in the form of tenant allowances and contracts with general service providers and other professional service providers. For purposes of this disclosure, the contractual obligations and other commitments related to Fashion District Philadelphia are included at 100% of the obligation and not at our 50% ownership share.

Preferred Dividend Arrearages

We have aggregate authorized preferred shares of 25.0 million, where each series of authorized preferred shares is equal to the number of preferred shares outstanding of that series. Dividends on the Series B, Series C and Series D preferred shares are cumulative and therefore will continue to accrue at an annual rate of $1.8436 per share, $1.80 per share and $1.7188 per share, respectively. As of March 31, 2022, the cumulative amount of unpaid dividends on our issued and outstanding preferred shares totaled $47.9 million. This consisted of unpaid dividends per share on the Series B, Series C and Series D preferred shares of $3.23 per share, $3.15 per share and $3.01 per share, respectively.

NYSE Continued Listing Standards

On September 25, 2020, the Company received notice from the NYSE that the Company was not in compliance with the NYSE continued

listing standard set forth in Section 802.01C of the NYSE’s Listed Company Manual (the “Continued Listing Standards”), which requires listed

companies to maintain an average closing price of at least $1.00 per share over a consecutive 30-day trading period.

On January 4, 2021, the Company received notice from the NYSE that it regained compliance with the Continued Listing Standards. The

Company regained compliance after the closing price for its common shares on December 31, 2020 and the average closing price for its

common shares during the 30 trading-day period ended December 31, 2020 both exceeded $1.00.

On February 4, 2022, the Company received another notice from the NYSE that the Company was not in compliance with the NYSE continued

listing standard set forth in Section 802.01C of the NYSE’s Listed Company Manual (the “Continued Listing Standards”), which requires listed

companies to maintain an average closing price of at least $1.00 per share over a consecutive 30-day trading period.

21

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following analysis of our consolidated financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements and the notes thereto included elsewhere in this report. The disclosures in this report are complementary to those made in our Annual Report on Form 10-K for the year ended December 31, 2021.

OVERVIEW

PREIT, a Pennsylvania business trust founded in 1960 and one of the first equity real estate investment trusts (“REITs”) in the United States, has a primary investment focus on shopping malls located in the eastern half of the United States, primarily in the Mid-Atlantic region.

We currently own interests in 25 retail properties, of which 24 are operating properties and one is a development property. The 24 operating properties include 20 shopping malls and four other retail properties, have a total of 19.6 million square feet and are located in eight states. We and partnerships in which we hold an interest own 15.1 million square feet at these properties (excluding space owned by anchors or third parties).

There are 17 operating retail properties in our portfolio that we consolidate for financial reporting purposes. These consolidated properties have a total of 14.6 million square feet, of which we own 11.4 million square feet. The seven operating retail properties that are owned by unconsolidated partnerships with third parties have a total of 5.0 million square feet of which 3.6 million square feet are owned by such partnerships. When we refer to “Same Store” properties, we are referring to properties that have been owned for the full periods presented and exclude properties acquired or disposed of, under redevelopment or designated as a non-core property during the periods presented. Core properties include all operating retail properties except for Exton Square Mall. Valley View Mall was previously designated as a non-core property. As discussed further in Note 2 to our consolidated financial statements, a foreclosure sale judgment with respect to Valley View Mall was ordered by the court after the property operations were assumed by a receiver on behalf of the lender under the mortgage loan secured by Valley View Mall and we no longer operate the property. “Core Malls” also excludes these properties as well as power centers and Gloucester Premium Outlets.

We have one property in our portfolio that is classified as under development; however, we do not currently have any activity occurring at this property.

Our primary business is owning, operating and redeveloping shopping malls, which we do primarily through our operating partnership, PREIT Associates, L.P. (“PREIT Associates” or the “Operating Partnership”). We believe our distinctive real estate is at the forefront of enabling communities to flourish through the built environment by providing opportunities to create vibrant multi-use destinations. In general, our malls include carefully curated retail and lifestyle offerings, including national and regional department stores, large format retailers and other anchors, mixed with destination dining and entertainment experiences. In recent years, we have increased the portion of our mall properties that are leased to non-traditional mall tenants, including life sciences, healthcare, supermarkets and self-storage facilities.

We provide management, leasing and real estate development services through PREIT Services, LLC (“PREIT Services”), which generally develops and manages properties that we consolidate for financial reporting purposes, and PREIT-RUBIN, Inc. (“PRI”), which generally develops and manages properties that we do not consolidate for financial reporting purposes, including properties owned by partnerships in which we own an interest, and properties that are owned by third parties in which we do not have an interest. PRI is a taxable REIT subsidiary, as defined by federal tax laws, which means that it is able to offer additional services to tenants without jeopardizing our continuing qualification as a REIT under federal tax law.

Our revenue consists primarily of fixed rental income, additional rent in the form of expense reimbursements, and percentage rent (rent that is based on a percentage of our tenants’ sales or a percentage of sales in excess of thresholds that are specified in the leases) derived from our income producing properties. We also receive income from our real estate partnership investments and from the management and leasing services PRI provides.

The COVID-19 global pandemic that began in early 2020 has adversely impacted and continues to impact our business, financial condition, liquidity and operating results, as well as our tenants’ businesses. The prolonged and increased spread of COVID-19 has also led to unprecedented global economic disruption and volatility in financial markets. Some of our tenants’ financial health and business viability have been adversely impacted and their creditworthiness has deteriorated. We anticipate that our future business, financial condition, liquidity and results of operations, including in 2021 and potentially in future periods, will continue to be materially impacted by the COVID-19 pandemic. Although we have operated in the COVID-19 environment for approximately two years, uncertainty remains as to how long the global pandemic, economic challenges and restrictions on day-to-day life and business operations will continue to impact us or our tenants.

COVID-19 closures of our properties began on March 12, 2020 and continued through the reopening of our last property on July 3, 2020; all of our properties have remained open since that time and are employing safety and sanitation measures designed to address the risks posed by COVID-19, with some of our tenants still operating at reduced capacity. Following the pandemic-related closures, approximately 4% of our tenants failed to re-open (inclusive of tenants that filed for bankruptcy protection in the aftermath). As a result of the challenging environment

22

created by COVID-19, primarily beginning in the second quarter of 2020, many of our tenants have sought rent relief and deferral and several have failed to pay rent due. Although we continue to make progress in collecting COVID-19-period rents, we have also initiated legal proceedings against certain tenants for failure to pay. Collections improved in 2022 and 2021 as compared to 2020. We believe that our rent collections are probable, but expect that collections will continue to be below our tenants’ rent obligations as long as the effects of COVID-19 affect the financial strength of our tenants. The significance of the prolonged pandemic on our business, however, will continue to depend on, among other things, the resurgences of outbreaks, the severity of the disease and the number of people infected with the virus, the timing and widespread availability and acceptance of vaccines, the further effects on the economy of the pandemic and of the measures taken by governmental authorities and other third parties restricting daily activities and the length of time that such measures remain in place or are renewed, and implementation of governmental programs to assist businesses and consumers impacted by the COVID-19 pandemic.

Net loss for the three months ended March 31, 2022 was $33.0 million compared to net loss of $44.0 million for the three months ended March 31, 2021. This $11.0 million decrease in net loss was primarily due to: (a) an increase in real estate revenue of $3.9 million resulting from the recovering economic conditions following the impact of COVID-19 on our tenants; (b) an increase in gain on the sale of preferred equity interests of $3.7 million; (c) a decrease in depreciation and amortization of $0.7 million; and (d) a decrease in equity in loss of partnerships of $3.0 million.

We evaluate operating results and allocate resources on a property-by-property basis, and do not distinguish or evaluate our consolidated operations on a geographic basis. Due to the nature of our operating properties, which involve retail shopping, dining and entertainment, we have concluded that our individual properties have similar economic characteristics and meet all other aggregation criteria. Accordingly, we have aggregated our individual properties into one reportable segment. In addition, no single tenant accounts for 10% or more of our consolidated revenue, and none of our properties are located outside the United States.

Current Economic and Industry Conditions and Impact of COVID-19

Conditions in the economy have caused fluctuations and variations in business and consumer confidence, retail sales, and consumer spending on retail goods, destination dining and entertainment. Further, traditional mall tenants, including department store anchors and smaller format retail tenants face significant challenges resulting from changing consumer expectations, the convenience of e-commerce shopping, competition from fast fashion retailers, the expansion of outlet centers, and declining mall traffic, among other factors. In recent years, there has been an increased level of tenant bankruptcies and store closings by tenants who have been significantly impacted by these factors. All of these factors have been exacerbated by the impact of the COVID-19 pandemic in early 2020, throughout 2021, and continuing into the first quarter of 2022.

The table below sets forth information related to our tenants in bankruptcy for our consolidated and unconsolidated properties (excluding tenants in bankruptcy at sold properties):

	Pre-bankruptcy								Units Closed
Year	Number of Tenants (1)		Number of locations impacted		GLA(2)		PREIT’s Share of Annualized Gross Rent(3) (in thousands)		Number of locations closed		GLA(2)		PREIT’s Share of Annualized Gross Rent(3) (in thousands)
2022 (through March 31, 2022)
Consolidated properties		—		—		—	$	—		—		—	$	—
Unconsolidated properties		—		—		—		—		—		—		—
Total		—		—		—	$	—		—		—	$	—
2021 (Full Year)
Consolidated properties		5		10		331,314	$	1,589		5		18,344	$	380
Unconsolidated properties		1		1		4,046		57		1		4,046		57
Total		5		11		335,360	$	1,646		6		22,390	$	437

(1) Total represents unique tenants and includes both tenant-owned and landlord-owned stores. As a result, amounts may not total.

(2) Gross Leasable Area (“GLA”) in square feet.

(3) Includes our share of tenant gross rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments as of March 31, 2022.

Anchor Replacements

In recent years, through property dispositions, proactive store recaptures, lease terminations and other activities, we have made efforts to reduce our risks associated with certain department store concentrations.

During 2019, we re-opened or introduced additional tenants to former anchor positions at Woodland Mall in Grand Rapids, Michigan, Valley Mall in Hagerstown, Maryland and Plymouth Meeting Mall, in Plymouth Meeting, Pennsylvania. Dick’s Sporting Goods at Valley Mall opened in the first quarter of 2020. At Plymouth Meeting Mall, we opened Michaels in the first quarter of 2020. In 2017, we purchased the

23

Macy’s location at Moorestown Mall in Moorestown, New Jersey and opened HomeSense, Sierra Trading, Five Below and Michaels between 2018 and the first quarter of 2020. During 2021, we opened Power Warehouse and during the first quarter of 2022, we opened HomeGoods at Cumberland Mall in Vineland, New Jersey.

Construction was completed in the first quarter of 2020 giving way to the opening of Burlington in place of a former Sears at Dartmouth Mall in Dartmouth, Massachusetts. Aldi also opened in the space adjacent to Burlington in September 2021. We expect to continue to move forward with several outparcels at Dartmouth Mall resulting from the Sears recapture and to work with large format prospects for the additional space adjacent to Burlington, but have experienced delays due to the impact of the COVID-19 pandemic.

During 2019, an anchor tenant, Sears, closed at Exton Square Mall in Exton, Pennsylvania. In January 2020, the Lord & Taylor store at Moorestown Mall in Moorestown, New Jersey closed and we executed a lease with Turn 7, which opened in the fourth quarter of 2021. Sears closed its stores at Moorestown Mall in Moorestown, New Jersey and Jacksonville Mall in Jacksonville, North Carolina in April 2020. Sears continues to be financially obligated pursuant to the lease at the Jacksonville Mall location. In July 2021, the former Sears site at Moorestown Mall was sold to Cooper University Health Care. In May 2020, J.C. Penney filed for bankruptcy and announced the closure of its stores at the Mall at Prince Georges in Hyattsville, Maryland, and Magnolia Mall in Florence, South Carolina. The Magnolia Mall location has been leased to Tilt Studio, an entertainment concept that opened in October 2021.

In response to anchor store closings and other trends in the retail space, we have been changing the mix of tenants at our properties. In general, our malls include national and regional department stores, large format retailers and other anchors, mixed with destination dining and entertainment experiences, however, in recent years, we have been reducing the percentage of traditional mall tenants and increasing the share of space dedicated to non-traditional mall tenants. Approximately 29.0% of our mall space is committed to non-traditional tenants offering services such as dining and entertainment, health and wellness, off-price retail and fast fashion. See “— Capital Improvements, Redevelopment and Development Projects.”

To fund the capital necessary to replace anchors and to maintain a reasonable level of leverage, we expect to use a variety of means available to us, subject to and in accordance with the terms of our Credit Agreements. These steps might include (i) making additional borrowings under our Credit Agreements (assuming availability and continued compliance with the financial covenants thereunder), (ii) obtaining construction loans on specific projects, (iii) selling properties or interests in properties with values in excess of their mortgage loans (if applicable) and applying the excess proceeds to fund capital expenditures or for debt reduction, or (iv) obtaining capital from joint ventures or other partnerships or arrangements involving our contribution of assets with institutional investors, private equity investors or other REITs.

Capital Improvements, Redevelopment and Development Projects

We might engage in various types of capital improvement projects at our operating properties. Such projects vary in cost and complexity, and can include building out new or existing space for individual tenants, upgrading common areas or exterior areas such as parking lots, or redeveloping the entire property, among other projects. Project costs are accumulated in “Construction in progress” on our consolidated balance sheet until the asset is placed into service, and amounted to $45.1 million as of March 31, 2022.

As of March 31, 2022, we had unaccrued contractual and other commitments related to our capital improvement projects and development projects at our consolidated and unconsolidated properties of $4.1 million, including $0.6 million of commitments related to the redevelopment of Fashion District Philadelphia, in the form of contracts with general service providers and other professional service providers.

In 2014, we entered into a 50/50 joint venture with The Macerich Company (“Macerich”) to redevelop Fashion District Philadelphia. As we redevelop Fashion District Philadelphia, operating results in the short term, as measured by sales, occupancy, real estate revenue, property operating expenses, Net Operating Income (“NOI”) and depreciation, will continue to be affected until the newly constructed space is completed, leased and occupied.

In January 2018, the Company and Macerich entered into a $250.0 million term loan (as amended in July 2019 to increase the total maximum potential borrowings to $350.0 million) to fund the ongoing redevelopment of Fashion District Philadelphia and to repay capital contributions to the venture previously made by the partners. A total of $51.0 million was drawn during the third quarter of 2019 and we received aggregate distributions of $25.0 million as our share of the draws. On December 10, 2020, PM Gallery LP, together with certain other subsidiaries owned indirectly by us and Macerich (including the fee and leasehold owners of the properties that are part of the Fashion District Philadelphia project), entered into an Amended and Restated Term Loan Agreement (the “FDP Loan Agreement”). In connection with the execution of the FDP Loan Agreement, a $100.0 million principal payment was made (and funded indirectly by Macerich, the “Partnership Loan”) to pay down the existing loan, reducing the outstanding principal under the FDP Loan Agreement from $301.0 million to $201.0 million. The joint venture must repay the Partnership Loan plus 15% accrued interest to Macerich, in its capacity as the lender, prior to the resumption of 50/50 cash distributions to us and Macerich. In connection with the execution of the FDP Loan Agreement, the governing structure of PM Gallery LP was modified such that, effective as of January 1, 2021, Macerich is responsible for the entity’s operations and, subject to limited exceptions, controls major decisions. The Company considered the changes to the governing structure of PM Gallery LP and determined the investment qualifies as a variable interest entity and would continue to be accounted for under the equity method of accounting.

24

The FDP Loan Agreement provides for (i) a maturity date of January 22, 2023, with the potential for a one-year extension upon the borrowers’ satisfaction of certain conditions, (ii) an interest rate at the borrowers’ option with respect to each advance of either (A) the Base Rate (defined as the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50%, and (c) the LIBOR Market Index Rate plus 1.00%) plus 2.50% or (B) LIBOR for the applicable period plus 3.50%, (iii) a full recourse guarantee of 50% of the borrowers’ obligations by PREIT Associates, L.P., on a several basis, (iv) a full recourse guarantee of certain of the borrowers’ obligations by The Macerich Partnership, L.P., up to a maximum of $50.0 million, on a several basis, (v) a pledge of the equity interests of certain indirect subsidiaries of PREIT and Macerich, as well as of PREIT-RUBIN, Inc. and one of its subsidiaries, that have a direct or indirect ownership interest in the borrowers, (vi) a non-recourse carve-out guaranty and a hazardous materials indemnity by each of PREIT Associates, L.P. and The Macerich Partnership, L.P., and (vii) mortgages of the borrowers’ fee and leasehold interests in the properties that are part of the Fashion District Philadelphia project and certain other properties. The FDP Loan Agreement contains certain covenants typical for loans of its type.

We also own one development property, but we do not expect to make any significant investment at this property in the short term.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Critical Accounting Policies are those that require the application of management’s most difficult, subjective, or complex judgments, often because of the need to make estimates about the effect of matters that are inherently uncertain and that might change in subsequent periods. In preparing the unaudited consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. In preparing the unaudited consolidated financial statements, management has utilized available information, including our past history, industry standards and the current economic environment, among other factors, in forming its estimates and judgments, giving due consideration to materiality. Management has also considered events and changes in property, market and economic conditions, estimated future cash flows from property operations and the risk of loss on specific accounts or amounts in determining its estimates and judgments. Actual results may differ from these estimates. In addition, other companies may utilize different estimates, which may affect comparability of our results of operations to those of companies in a similar business. The estimates and assumptions made by management in applying critical accounting policies have not changed materially during 2022 and 2021, except as otherwise noted, and none of these estimates or assumptions have proven to be materially incorrect or resulted in our recording any significant adjustments relating to prior periods. We will continue to monitor the key factors underlying our estimates and judgments, but no change is currently expected.

For additional information regarding our Critical Accounting Policies, see “Critical Accounting Policies and Estimates” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2021.

Asset Impairment

Real estate investments and related intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the property might not be recoverable, which is referred to as a "triggering event.". A property to be held and used is considered impaired only if management’s estimate of the aggregate future cash flows, less estimated capital expenditures, to be generated by the property, undiscounted and without interest charges, are less than the carrying value of the property. This estimate takes into consideration factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors.

If there is a triggering event in relation to a property to be held and used, we will estimate the aggregate future cash flows, less estimated capital expenditures, to be generated by the property, undiscounted and without interest charges. In addition, this estimate may consider a probability weighted cash flow estimation approach when alternative courses of action to recover the carrying amount of a long-lived asset are under consideration or when a range of possible values is estimated.

The determination of undiscounted cash flows requires significant estimates by management, including the expected course of action at the balance sheet date that would lead to such cash flows. Subsequent changes in estimated undiscounted cash flows arising from changes in the anticipated action to be taken with respect to the property could impact the determination of whether an impairment exists and whether the effects could materially affect our net income. To the extent estimated undiscounted cash flows are less than the carrying value of the property, the loss will be measured as the excess of the carrying amount of the property over the estimated fair value of the property. Our intent is to hold and operate our properties long-term, which reduces the likelihood that our carrying value is not recoverable. A shortened holding period would increase the likelihood that the carrying value is not recoverable.

Assessment of our ability to recover certain lease related costs must be made when we have a reason to believe that the tenant might not be able to perform under the terms of the lease as originally expected. This requires us to make estimates as to the recoverability of such costs.

An other-than-temporary impairment of an investment in an unconsolidated joint venture is recognized when the carrying value of the investment is not considered recoverable based on evaluation of the severity and duration of the decline in value. To the extent impairment has occurred, the excess carrying value of the asset over its estimated fair value is recorded as reduction to income.

25

Revenue and Receivables

We derive over 95% of our revenue from tenant rent and other tenant-related activities. Tenant rent includes base rent, percentage rent, expense reimbursements (such as reimbursements of costs of common area maintenance (“CAM”), real estate taxes and utilities), and the amortization of above-market and below-market lease intangibles.

We accrue revenue under leases, provided that it is probable that we will collect substantially all of the lease revenue that is due under the terms of the lease both at inception and on an ongoing basis. When collectability of lease revenue is not probable, leases are prospectively accounted for on a cash basis and any difference between the revenue that has been accrued and the cash collected from the tenant over the life of the lease is recognized as a current period adjustment to lease revenue. We review the collectability of our tenant receivables related to tenant rent including base rent, straight-line rent, expense reimbursements and other revenue or income by specifically analyzing billed and unbilled revenues, including straight-line rent receivable, and considering historical collection issues, tenant creditworthiness and current economic and industry trends. Our revenue recognition and receivables collectability analysis places particular emphasis on past-due accounts and considers the nature and age of the receivables, the payment history and financial condition of the payor, the basis for any disputes or negotiations with the payor, and other information that could affect collectability.

We record base rent on a straight-line basis, which means that the monthly base rent revenue according to the terms of our leases with our tenants is adjusted so that an average monthly rent is recorded for each tenant over the term of its lease. When tenants vacate prior to the end of their lease, we accelerate amortization of any related unamortized straight-line rent balances, and unamortized above-market and below-market intangible balances are amortized as a decrease or increase to real estate revenue, respectively.

Percentage rent represents rental revenue that the tenant pays based on a percentage of its sales, either as a percentage of its total sales or as a percentage of sales over a certain threshold. In the latter case, we do not record percentage rent until the sales threshold has been reached.

Revenue for rent received from tenants prior to their due dates is deferred until the period to which the rent applies.

In addition to base rent, certain lease agreements contain provisions that require tenants to reimburse a fixed or pro rata share of certain CAM costs, real estate taxes and utilities. Tenants generally make monthly expense reimbursement payments based on a budgeted amount determined at the beginning of the year. Effective January 1, 2019, we recognize fixed CAM revenue prospectively on a straight-line basis.

Certain lease agreements contain co-tenancy clauses that can change the amount of rent or the type of rent that tenants are required to pay, or, in some cases, can allow the tenant to terminate their lease, in the event that certain events take place, such as a decline in property occupancy levels below certain defined levels or the vacating of an anchor store. Co-tenancy clauses do not generally have any retroactive effect when they are triggered. The effect of co-tenancy clauses is applied on a prospective basis to recognize the new rent that is in effect.

Payments made to tenants as inducements to enter into a lease are treated as deferred costs that are amortized as a reduction of rental revenue over the term of the related lease.

Lease termination fee revenue is recognized in the period when a termination agreement is signed, collectability is assured, and the tenant has vacated the space. In the event that a tenant is in bankruptcy when the termination agreement is signed, termination fee income is deferred and recognized when it is received.

We also generate revenue by providing management services to third parties, including property management, brokerage, leasing and development. Management fees generally are a percentage of managed property revenue or cash receipts. Leasing fees are earned upon the consummation of new leases. Development fees are earned over the time period of the development activity and are recognized on the percentage of completion method. These activities are collectively included in “Other income” in the consolidated statements of operations.

Revenue from the reimbursement of marketing expenses is generated through tenant leases that require tenants to reimburse a defined amount of property marketing expenses. Our contractual performance obligations are fulfilled as marketing expenditures are made. Tenant payments are received monthly as required by the respective lease terms. We defer income recognition if the reimbursements exceed the aggregate marketing expenditures made through that date. Deferred marketing reimbursement revenue is recorded in tenants’ deposits and deferred rent on the consolidated balance sheet. The marketing reimbursements are recognized as revenue at the time that the marketing expenditures occur.

Property management revenue from management and development activities is generated through contracts with third party owners of real estate properties or with certain of our joint ventures, and is recorded in other income in the consolidated statements of operations. In the case of management fees, our performance obligations are fulfilled over time as the management services are performed and the associated revenues are recognized on a monthly basis when the customer is billed. In the case of development fees, our performance obligations are fulfilled over time as we perform certain stipulated development activities as set forth in the respective development agreements and the associated revenues are recognized on a monthly basis when the customer is billed.

New Accounting Developments

See Note 1 to our unaudited consolidated financial statements for descriptions of new accounting developments.

26

RESULTS OF OPERATIONS

Overview

Net loss for the three months ended March 31, 2022 was $33.0 million compared to net loss of $44.0 million for the three months ended March 31, 2021. This $11.0 million decrease in net loss was primarily due to: (a) an increase in real estate revenue of $3.9 million resulting from the recovering economic conditions following the impact of COVID-19 on our tenants; (b) an increase in gain on the sale of preferred equity interests of $3.7 million; (c) a decrease in depreciation and amortization of $0.7 million; and (e) a decrease in equity in loss of partnerships of $3.0 million.

Occupancy

The table below sets forth certain occupancy statistics for our properties as of March 31, 2022 and 2021:

	Occupancy(1) at March 31,
	Consolidated Properties						Unconsolidated Properties						Combined(2)
	2022			2021			2022			2021			2022			2021
Retail portfolio weighted average (3):
Total excluding anchors		88.5	%		86.0	%		85.3	%		80.3	%		87.6	%		84.3	%
Total including anchors		91.0	%		87.5	%		88.0	%		81.4	%		90.3	%		86.0	%
Core Malls weighted average: (4)
Total excluding anchors		91.0	%		87.9	%		78.8	%		76.3	%		88.8	%		85.9	%
Total including anchors		94.3	%		89.5	%		84.5	%		78.1	%		92.7	%		87.7	%

(1) Occupancy for all periods presented includes all tenants irrespective of the term of their agreement.

(2) Combined occupancy is calculated by using occupied gross leasable area (“GLA”) for consolidated and unconsolidated properties and dividing by total GLA for consolidated and unconsolidated properties.

(3) Retail portfolio includes all retail properties including Fashion District Philadelphia.

(4) Core Malls excludes Exton Square Mall, power centers and Gloucester Premium Outlets.

Leasing Activity

The table below sets forth summary leasing activity information with respect to our consolidated and unconsolidated properties for the three months ended March 31, 2022:

	Number		GLA		Term		Initial Rent per square foot ("psf")		Previous Rent psf		Initial Gross Rent Renewal Spread(1)						Average Rent Renewal Spread(2)			Annualized Tenant Improvements psf(3)
											$			%			%
Non Anchor
New Leases
Under 10k square feet ("sf")		34		77,644		6.4	$	40.97	N/A		N/A			N/A			N/A			$	7.03
Over 10k sf		2		41,450		12.4		13.51	N/A		N/A			N/A			N/A				5.94
Total New Leases		36		119,094		8.5	$	31.41	N/A		N/A			N/A			N/A			$	6.48
Renewal Leases
Under 10k sf		33		99,981		4.2	$	51.78	$	53.04	$	(1.26	)		(2.4	%)		3.8	%	$	1.31
Over 10k sf		3		69,735		4.1		24.29		23.52		0.77			3.3	%		2.6	%		3.51
Total Fixed Rent		36		169,716		4.1	$	40.49	$	40.91	$	(0.42	)		(1.0	%)		3.7	%	$	2.20
Total Percentage in Lieu		13		48,347		2.2		19.68		20.46		(0.78	)		(3.8	%)		0.0	%		1.72
Total Renewal Leases		49		218,063		3.7	$	35.87	$	36.38	$	(0.50	)		(1.4	%)	N/A			$	2.14
Total Non Anchor (4)		85		337,157		5.4	$	34.30
Anchor
New Leases		-		-		-	$	-	$	-	$	-		N/A			N/A			$	-
Renewal Leases		-		-		-		-		-		-			0.0	%	N/A				-
Total		-		-		-	$	-

27

(1) Initial gross rent renewal spread is computed by comparing the initial rent per square foot in the new lease to the final rent per square foot amount in the expiring lease. For purposes of this computation, the rent amount includes minimum rent, common area maintenance (“CAM”) charges, estimated real estate tax reimbursements and marketing charges, but excludes percentage rent. In certain cases, a lower rent amount may be payable for a period of time until specified conditions in the lease are satisfied.

(2) Average rent renewal spread is computed by comparing the average rent per square foot over the new lease term to the final rent per square foot amount in the expiring lease. For purposes of this computation, the rent amount includes minimum rent and fixed CAM charges, but excludes pro rata CAM charges, estimated real estate tax reimbursements, marketing charges and percentage rent.

(3) These leasing costs are presented as annualized amounts per square foot and are spread uniformly over the initial lease term.

(4) Includes 3 leases and 12,256 square feet of GLA with respect to our unconsolidated partnerships. We own a 25% to 50% interest in each of our unconsolidated properties and do not control such properties. Our percentage ownership is not necessarily indicative of the legal and economic implications of our ownership interest. See “— Non-GAAP Supplemental Financial Measures” for further details on our ownership interests in our unconsolidated properties.

The following table sets forth our results of operations for the three months ended March 31, 2022 and 2021.

	Three Months Ended March 31,						% Change 2021 to 2022
(in thousands of dollars)	2022			2021
Real estate revenue	$	69,194		$	65,278			6.0		%
Property operating expenses		(33,573	)		(33,159	)		1.2		%
Other income		241			125			92.8		%
Depreciation and amortization		(29,110	)		(29,839	)		(2.4	)	%
General and administrative expenses		(11,483	)		(11,831	)		(2.9	)	%
Provision for employee separation expenses		(84	)		(92	)		(8.7	)	%
Project costs and other expenses		(60	)		(101	)		(40.6	)	%
Interest expense, net		(31,391	)		(30,731	)		2.1		%
Reorganization expenses		-			(197	)		(100.0	)	%
Equity in loss of partnerships		(395	)		(3,433	)		(88.5	)	%
Gain on sale of preferred equity interest		3,688			-			100.0		%
Net loss	$	(32,973	)	$	(43,980	)		(25.0	)	%

The amounts in the preceding tables reflect our consolidated properties and our unconsolidated properties. Our unconsolidated properties are presented under the equity method of accounting in the line item “Equity in (loss) income of partnerships.”

Real Estate Revenue

We include all rental income earned pursuant to tenant leases under the “Lease revenue” line item in the consolidated statements of operations. Utility reimbursements are presented separately in “Expense reimbursements.” We review the collectability of both billed and unbilled lease revenues each reporting period, taking into consideration the tenant’s payment history, credit profile and other factors, including the tenant’s operating performance. For any tenant receivable balance deemed to be uncollectible, we record an offset for credit losses directly to Lease revenue in the consolidated statements of operations.

The following table reports the breakdown of real estate revenues based on the terms of the lease contracts for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
(in thousands of dollars)	2022		2021
Contractual lease payments:
Base rent	$	47,655	$	45,918
CAM reimbursement income		8,477		8,359
Real estate tax income		7,167		6,944
Percentage rent		112		(12	)
Lease termination revenue		9		36
		63,420		61,245
Less: credit losses		20		(1,337	)
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

28

Real Estate Revenue

Real estate revenue increased by $3.9 million, or 6.0%, in the three months ended March 31, 2022 compared to the three months ended March 31, 2021, primarily due to:

•an increase of $2.0 million in same store base rent due to increases of $1.6 million from net new store openings and lease modifications over the previous twelve months and $0.4 million from comparable tenants paying a percentage of sales in lieu of minimum rent;

•a decrease of $1.2 million in same store credit losses as compared to the three months ended March 31, 2021 due to the collection of receivables from struggling tenants across our portfolio recovering from the COVID-19 related closures that occurred in 2020;

•an increase of $0.3 million in same store utility reimbursements related to the increase in same store utility expense (see “-Property Operating Expenses”);

•an increase of $0.2 million in same store common area expense reimbursements due to increased occupancy and abatements recorded in the prior year, partially offset by a decrease of $0.1 million associated with the straight lining of fixed common area expense reimbursements;

•an increase of $0.2 million in same store real estate tax reimbursements due to increased occupancy and abatements recorded in the prior year; and

•an increase of $0.1 million in same store percentage rent; partially offset by

•a decrease of $0.1 million at non-same store properties Valley View Mall and Exton Square Mall due to the sale of the strip center at Valley View Mall in the third quarter of 2021.

Property Operating Expenses

Property operating expenses increased by $0.4 million, or 1.2%, in the three months ended March 31, 2022 compared to the three months ended March 31, 2021, primarily due to:

•an increase of $0.6 million in same store tenant utility expense due to a combination of higher electricity usage and electricity rates; and

•an increase of $0.2 million in same store common area maintenance expense, including a $0.2 million increase in utility expense due to a combination of higher electricity usage and electricity rates and a $0.2 million increase in insurance expense, partially offset by a $0.1 million decrease in snow removal expense due to higher snowfall amounts during 2021 across the Mid-Atlantic States, and a $0.1 million decrease in personnel costs; partially offset by

•a decrease of $0.2 million in same store other property operating expenses due to a decrease in property legal expense; and

•a decrease of $0.2 million at non-same store properties Valley View Mall and Exton Square Mall.

Depreciation and Amortization

Depreciation and amortization expense decreased by $0.7 million, or 2.4%, in the three months ended March 31, 2022 compared to the three months ended March 31, 2021, primarily due to:

•a decrease of $0.6 million resulting from accelerated amortization of capital improvements associated with store closings during 2021; and

•a decrease of $0.1 million at non-same store properties Exton Square Mall and Valley View Mall.

General and administrative expenses

General and administrative expenses decreased by $0.3 million, or 2.9%, in the three months ended March 31, 2022 compared to the three months ended March 31, 2021 primarily due to lower compensation expenses in 2022.

Interest expense

Interest expense increased by $0.7 million, or 2.1%, in the three months ended March 31, 2022 compared to the three months ended March 31, 2021. This increase was primarily due to higher weighted average debt balances and higher weighted average interest rates. Our weighted average effective borrowing rate was 5.86% for the three months ended March 31, 2022 compared to 5.7% for the three months ended March

29

31, 2021. Our weighted average debt balance was $2,258.2 million for the three months ended March 31, 2022, compared to $1,864.4 million for the three months ended March 31, 2021.

Reorganization Expenses

For the three months ended March 31, 2022, we have not incurred any reorganization expenses. For the three months ended March 31, 2021, we incurred costs and fees of $0.2 million in connection with our efforts to finalize our Financial Restructuring that were directly attributable to our bankruptcy proceedings, which we classified within reorganization expenses in the consolidated statement of operations.

Equity in loss of partnerships

Equity in loss of partnerships was a loss of $0.4 million in the three months ended March 31, 2022 compared to a loss of $3.4 million in the prior year period, reflecting a change of $3.0 million, or 88.5%. The decrease in loss was primarily due to higher real estate revenues across all of our partnership properties in 2022 due to the economic rebound following the COVID-19 impact, along with lower property operating expenses.

Gain on sale of preferred equity interest

During the three months ended March 31, 2022, there was a $3.7 million gain on sale of preferred equity interest in a property that we received in exchange for the sale of a property we previously owned. There was no gain on sale of preferred equity interest for the three months ended March 31, 2021.

NON-GAAP SUPPLEMENTAL FINANCIAL MEASURES

Overview

The preceding discussion analyzes our financial condition and results of operations in accordance with generally accepted accounting principles, or GAAP, for the periods presented. We also use Net Operating Income (“NOI”) and Funds from Operations (“FFO”) which are non-GAAP financial measures, to supplement our analysis and discussion of our operating performance:

•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. When we use and present NOI, we also do so on a same store (“Same Store NOI”) and non-same store (“Non Same Store NOI”) basis to differentiate between properties that we have owned for the full periods presented and properties acquired, sold or under redevelopment during those periods. Furthermore, our use and presentation of NOI combines NOI from our consolidated properties and NOI attributable to our share of unconsolidated properties in order to arrive at total NOI. We believe that this is also helpful information because it reflects the pro rata contribution from our unconsolidated properties that are owned through investments accounted for under GAAP as equity in income of partnerships. See “Unconsolidated Properties and Proportionate Financial Information” below.

•We believe that FFO is also 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. In addition to FFO and FFO per diluted share and OP Unit, when applicable, we also present FFO, as adjusted and FFO per diluted share and OP Unit, as adjusted, which we believe is helpful to management and investors because they adjust FFO to exclude items that management does not believe are indicative of operating performance, such as gain on debt extinguishment and insurance recoveries.

•We use both NOI and FFO, or related terms like Same Store NOI and, when applicable, Funds From Operations, as adjusted, for determining incentive compensation amounts under certain of our performance-based executive compensation programs.

NOI and FFO are commonly used non-GAAP financial measures of operating performance in the real estate industry, and we use them as supplemental non-GAAP measures to compare our performance between different periods and to compare our performance to that of our industry peers. Our computation of NOI, FFO and other non-GAAP financial measures, such as Same Store NOI, Non Same Store NOI, NOI attributable to our share of unconsolidated properties, and FFO, as adjusted, may not be comparable to other similarly titled measures used by our industry peers. None of these measures are measures of performance in accordance with GAAP, and they have limitations as analytical tools. They should not be considered as alternative measures of our net loss, operating performance, cash flow or liquidity. They are not indicative of funds available for our cash needs, including our ability to make cash distributions. Please see below for a discussion of these non-GAAP measures and their respective reconciliation to the most directly comparable GAAP measure.

30

Unconsolidated Properties and Proportionate Financial Information

The non-GAAP financial measures presented below 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 reflected in the tables below as “unconsolidated,” 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.

We have determined that we hold a noncontrolling interest in each of our unconsolidated partnerships, and account for such partnerships using the equity method of accounting, because:

•Except for one property that we co-manage with our partner, all of the other entities are managed on a day-to-day basis by one of our other partners as the managing general partner in each of the respective partnerships. In the case of the co-managed property, all decisions in the ordinary course of business are made jointly.

•The managing general partner is responsible for establishing the operating and capital decisions of the partnership, including budgets, in the ordinary course of business.

•All major decisions of each partnership, such as the sale, refinancing, expansion or rehabilitation of the property, require the approval of all partners.

•Voting rights and the sharing of profits and losses are generally in proportion to the ownership percentages of each partner.

We hold legal title to a property owned by one of our unconsolidated partnerships through a tenancy in common arrangement. For this property, such legal title is held by us and another entity, and each has an undivided interest in title to the property. With respect to this property, under the applicable agreements between us and the entity with ownership interests, we and such other entity have joint control because decisions regarding matters such as the sale, refinancing, expansion or rehabilitation of the property require the approval of both us and the other entity owning an interest in the property. Hence, we account for this property like our other unconsolidated partnerships using the equity method of accounting. The balance sheet items arising from this property appear under the caption “Investments in partnerships, at equity.”

For further information regarding our unconsolidated partnerships, see note 3 to our unaudited consolidated financial statements.

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 interest.

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.

31

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 expenses		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

The table below reconciles equity in (loss) income of partnerships to NOI of our share of unconsolidated properties for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
(in thousands of dollars)	2022			2021
Equity in loss of partnerships	$	(395	)	$	(3,433	)
Depreciation and amortization		3,022			3,187
Interest and other expenses		5,802			5,288
NOI from equity method investments at ownership share	$	8,429		$	5,042

The table below presents total NOI and total NOI excluding lease termination revenue for the three months ended March 31, 2022 and 2021:

	Same Store				Non Same Store						Total (non-GAAP)
(in thousands of dollars)	2022		2021		2022			2021			2022		2021
NOI from consolidated properties	$	36,122	$	32,707	$	(500	)	$	(588	)	$	35,622	$	32,119
NOI from equity method investments at ownership share		8,442		5,060		(13	)		(18	)		8,429		5,042
Total NOI		44,564		37,767		(513	)		(606	)		44,051		37,161
Less: lease termination revenue		802		36		-			-			802		36
Total NOI excluding lease termination revenue	$	43,762	$	37,731	$	(513	)	$	(606	)	$	43,249	$	37,125

Total NOI increased by $6.9 million in the three months ended March 31, 2022 compared to the three months ended March 31, 2021 due to (a) a $6.8 million increase in Same Store NOI and (b) an increase of $0.1 million in Non Same Store NOI. The increase in Same Store and Non Same Store NOI is primarily due the reasons described in “— Real Estate Revenue” and “— Property Operating Expenses.”

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 have used it 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

32

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 gain or loss on debt extinguishment (including accelerated amortization of financing costs), impairment of assets, provision for employee separation expense, insurance recoveries or losses, net, gain on derecognition of property, gain/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.

The following table presents a reconciliation of net loss determined in accordance with GAAP to FFO attributable to common shareholders and OP Unit holders, FFO attributable to common shareholders and OP Unit holders per diluted share and OP Unit, FFO attributable to common shareholders and OP Unit holders, as adjusted and FFO attributable to common shareholders and OP Unit holders, as adjusted 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 expense		84			92
Gain on hedge ineffectiveness		—			(1,303	)
Reorganization expenses		—			197
Gain on sale of preferred equity interest		(3,688	)		—
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 (1)	$	(0.01	)	$	(0.14	)
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit (1)	$	(0.06	)	$	(0.15	)
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		-			691
Total weighted average shares outstanding, including OP Units		80,608			80,314

(1) Does not include the impact of $6.8 million of accrued, undeclared and unpaid preferred share dividends for the three months ended March 31, 2022 and 2021, respectively. The Company cannot declare and pay cash dividends on common shares while there exists a preferred dividend arrearage.

FFO attributable to common shareholders and OP Unit holders was negative $1.2 million for the three months ended March 31, 2022, an increase of $10.1 million, or 89.8%, compared to negative $11.3 million for the three months ended March 31, 2021. This increase was primarily due to:

•a $6.8 million increase in Same Store NOI primarily due to an increase in net new store openings and lease modifications over the previous twelve months;

•a $0.1 million increase in Non Same Store NOI primarily due to lower operating expenses at Exton Square Mall;

•a $0.3 million increase in general and administrative expense primarily due to decreased incentive compensation and decreased professional service costs;

•a $3.0 million decrease in equity in (loss) of partnerships; and,

33

•a $3.7 million increase in gain on sale of preferred equity interest.

FFO attributable to common shareholders and OP Unit holders per diluted share and OP Unit was $(0.01) and $(0.14) for the three months ended March 31, 2022 and 2021, respectively.

FFO, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit was $(0.06) and $(0.15) for the three months ended March 31, 2022 and 2021, respectively.

LIQUIDITY AND CAPITAL RESOURCES

This “Liquidity and Capital Resources” section contains certain “forward-looking statements” that relate to expectations and projections that are not historical facts. These forward-looking statements reflect our current views about our future liquidity and capital resources, and are subject to risks and uncertainties that might cause our actual liquidity and capital resources to differ materially from the forward-looking statements. Additional factors that might affect our liquidity and capital resources include those discussed herein and in the section entitled “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC. We do not intend to update or revise any forward-looking statements about our liquidity and capital resources to reflect new information, future events or otherwise.

Capital Resources

We currently expect to meet certain of our short-term liquidity requirements, including operating expenses, recurring capital expenditures, tenant improvements and leasing commissions, generally through our available working capital and our First Lien Revolving Facility, subject to the terms and conditions of our First Lien Credit Agreement. See “Credit Agreements—Similar terms of the Credit Agreements” below for covenant information. We expect to spend approximately $4.1 million related to our capital improvements and development projects in 2022. We believe that our net cash provided by operations will be sufficient to allow us to make any distributions necessary to enable us to continue to qualify as a REIT under the Internal Revenue Code of 1986, as amended. Our Credit Agreements limit our ability to declare and pay dividends on our common and preferred shares, subject to certain exceptions. We have deferred payments on our preferred shares and suspended payments on our common shares since the third quarter of 2020. Other than as may be required to maintain our status as a REIT, we do not anticipate that we will pay any cash dividends to holders of our common or preferred shares for the foreseeable future.

As a result of the existing cumulative unpaid dividends on our preferred shares and our bankruptcy filing, we are no longer able to register the offer and sale of securities on Form S-3. This creates additional limitations on our ability to raise capital in the capital markets, potentially increasing our costs of raising capital in the future. Our ability to raise capital in the capital markets may also be impacted by market fluctuations more generally, including as a result of the COVID-19 pandemic and related economic downturn.

We have availability under our revolving facility of $76.2 million as of March 31, 2022. We have been focused on improving operational efficiency and driving stable and increasing cash flows from operations while advancing our portfolio, including by undertaking, with the assistance of outside advisors, a thorough review of our business and capital structure and evaluating a wide range of opportunities to further strengthen our balance sheet and financial flexibility. We are actively seeking to raise additional capital, including through asset dispositions identified through our portfolio property reviews. Disposing of these properties can enable us to redeploy or recycle our capital to other uses. In many cases, we are marketing land parcels for development for a variety of different nontraditional, non-retail uses, including hotel, multifamily residential and healthcare uses, which we believe can also help position our portfolio within differentiated mixed-use environments. In 2022, we executed agreements of sale for Exton Square Mall and a former Sears TBA location. The mall and retail space along with previously executed land parcel sale agreements are expected to provide an aggregate of up to approximately $110.0 million in gross proceeds. The proceeds from our anticipated property sales will primarily be used to repay amounts outstanding under our Credit Agreements. These agreements include the sale of a mall, sale of land parcels for multifamily residential development, the sale of operating outparcels and the sale of land parcels for hotel development. Each of the transactions is subject to numerous closing conditions, including the completion of due diligence and securing of entitlements, which in several cases has been delayed due to the effects of COVID-19 on business operations and availability of financing. Closing of the transactions cannot be assured or the timing of their completion yet estimated with certainty.

The following are some of the factors that could affect our cash flows and require the funding of future cash distributions, recurring capital expenditures, tenant improvements or leasing commissions with sources other than operating cash flows:

•adverse changes or prolonged downturns in general, local or retail industry economic, financial, credit or capital market or competitive conditions, as a result of the COVID-19 pandemic or otherwise, leading to a reduction in real estate revenue or cash flows or an increase in expenses;

•continued deterioration in our tenants’ business operations and financial stability, particularly in light of the COVID-19 pandemic, including anchor or non-anchor tenant bankruptcies, leasing delays or terminations, or lower sales, causing deferrals or declines in rent, percentage rent and cash flows;

•inability to achieve targets for, or decreases in, property occupancy and rental rates, resulting in lower or delayed real estate revenue and operating income;

34

•increases in operating costs, including increases that cannot be passed on to tenants, resulting in reduced operating income and cash flows; and

•increases in interest rates, resulting in higher borrowing costs.

In addition, we are continuing to monitor the COVID-19 pandemic and the related restrictions and changes to behavior intended to reduce its spread, and its impact on our tenants, their supply chains and customers and the retail industry. Thus far, the pandemic and the actions taken to address it and the related overall worsening of economic conditions have had an adverse effect on our business, operations, liquidity and financial condition.

As of March 31, 2022, all of our malls had re-opened while adhering to social distancing and sanitation and safety protocols designed to address the risks posed by COVID-19, however, many of our tenants continue to operate at reduced capacity. The pandemic’s effect, primarily beginning in the second quarter of 2020, had a significant impact on our operations, financial condition, liquidity and results of operations in 2020, 2021, and the first quarter of 2022 and its impact is expected to continue through future periods. We believe that our rent collections are probable, but expect that collections will continue to be below our tenants’ rent obligations as long as lingering effects of COVID-19, including new or renewed restrictions and business closures, affect the return of customers to malls and the financial strength of our tenants. While we continue to record rental revenue, the reduced collection levels have impacted our liquidity position and may continue to do so. The extent and duration of such effects are uncertain, continuously changing and difficult to predict. Additionally, the future outbreak of any other highly infectious or contagious diseases may materially and adversely affect our business, financial condition, liquidity and operating results.

We expect to meet certain of our longer-term requirements, such as obligations to fund redevelopment and development projects, certain capital requirements, renovations, expansions and other non-recurring capital improvements, through a variety of capital sources, subject to the terms and conditions of our Credit Agreements, as further described below.

LIBOR Alternative

In July 2017, the Financial Conduct Authority (“FCA”), which is the authority that regulates LIBOR, announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee (“ARRC”) has identified the Secured Overnight Financing Rate (“SOFR”) as the rate that represents best practice as the alternative to USD-LIBOR for use in derivatives and other financial contracts that are currently indexed to USD-LIBOR. The FCA no longer publishes one-week and two-month U.S. dollar LIBOR rates and plans to cease publishing all other LIBOR tenors (overnight, one-month, three-month, six-month and 12-month) on June 30, 2023. It is not presently known whether SOFR or any other alternative reference rates will attain broad market acceptance as replacements of LIBOR. There remains uncertainty as to how the financial services industry will address the discontinuance of LIBOR in financial instruments that are indexed to LIBOR. Further, various financial instruments indexed to LIBOR could experience different outcomes based on their contractual terms, ability to amend those terms, market or product type, legal or regulatory jurisdiction, and other factors. Alternative reference rates that replace LIBOR may not yield the same or similar economic results over the lives of the financial instruments, which could adversely affect the value of and return on these instruments.

We have material contracts that are indexed to LIBOR and are monitoring and evaluating the related risks, which include interest on loans or amounts received and paid on derivative instruments. These risks arise in connection with transitioning contracts to a new alternative rate, including any resulting value transfer that may occur. The value of loans, securities, and derivative instruments tied to LIBOR could also be affected if LIBOR is limited or discontinued. For some instruments, the method of transitioning to an alternative rate may be challenging, as they may require negotiation with the respective counterparty.

If a contract is not transitioned to an alternative rate and LIBOR is discontinued, the impact on our contracts is likely to vary by contract. If LIBOR is phased out and changes implemented, interest rates on our current or future indebtedness may be adversely affected.

While we expect LIBOR to be available in substantially its current form until the end of 2022, it is possible that LIBOR will become unavailable prior to that point. This could occur, for example, if a requisite number of banks decline to make submissions to the LIBOR administrator. In that case, the risks associated with the transition to an alternative reference rate would be accelerated and magnified.

Credit Agreements

We have entered into two secured credit agreements (collectively, as amended, the “Credit Agreements”): (a) the First Lien Credit Agreement, which, as described in more detail below, includes (i) the $130.0 million First Lien Revolving Facility, and (ii) the $384.5 million First Lien Term Loan Facility, and (b) the Second Lien Credit Agreement, which, as described in more detail below, includes the $535.2 million Second Lien Term Loan Facility. The First Lien Term Loan Facility and the Second Lien Term Loan Facility are collectively referred to as the “Term Loans.” The Credit Agreements refinanced our previously existing credit agreements in effect prior to the effective date, including our secured term loan under the Credit Agreement dated as of August 11, 2020 (as amended, the “Bridge Credit Agreement”), our Seven-Year Term Loan Agreement entered into on January 8, 2014 (as amended, the “7-Year Term Loan”), and our 2018 Amended and Restated Credit Agreement entered into on May 24, 2018 (as amended, the “2018 Credit Agreement”).

As of March 31, 2022, we had borrowed $976.5 million under the Term Loans and $53.8 million under the First Lien Revolving Facility. The carrying value of the Term Loans on our consolidated balance sheet as of March 31, 2022 is net of $4.8 million of unamortized debt issuance

35

costs. The maximum amount that was available to be borrowed by us under the First Lien Revolving Facility as of March 31, 2022 was $76.2 million.

Our obligations under the Credit Agreements are guaranteed by certain of our subsidiaries. Our obligations under the Credit Agreements and the guaranties are secured by mortgages and deeds of trust on a portfolio of 12 of our subsidiaries’ properties, including nine malls and three additional parcels. The obligations are further secured by a lien on substantially all of our personal property pursuant to collateral agreements and a pledge of substantially all of the equity interests held by us and the guarantors, pursuant to pledge agreements, in each case subject to limited exceptions.

The maturity date of the Credit Agreements is December 10, 2022 (or such earlier date that the obligations under the applicable Credit Agreement have been accelerated), unless extended by one year until December 10, 2023 at our option (the “Maturity Date”). Any such extension would be subject to our fulfillment of certain conditions including maintaining minimum liquidity of $35.0 million, a minimum corporate debt yield of 8.0% and a maximum loan-to-value ratio of 105% for the total first lien and second lien loans and letters of credit and the Borrowing Base Properties as determined by an appraisal (provided that we may obtain a second appraisal of each Borrowing Base Property prepared by a nationally recognized appraisal firm and use the highest appraised value), and provided that no default or event of default exists and our representations and warranties are true in all material respects.

First Lien Credit Agreement

On December 10, 2020, we entered into an Amended and Restated First Lien Credit Agreement (the “First Lien Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo Bank”) and the other financial institutions signatory thereto and their assignees, for secured loan facilities consisting of: (i) a secured first lien revolving credit facility allowing for borrowings up to $130.0 million, including a sub-facility for letters of credit to be issued thereunder in an aggregate stated amount of up to $10.0 million (collectively, the “First Lien Revolving Facility”), and (ii) a $384.5 million secured first lien term loan facility (the “First Lien Term Loan Facility”).

Amounts borrowed under the First Lien Credit Agreement may be either Base Rate Loans or LIBOR Loans. Base Rate Loans bear interest at the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) the LIBOR Market Index Rate plus 1.0%, provided that the Base Rate will not be less than 1.50% per annum, in each case plus (w) for revolving loans, 2.50% per annum, and (x) for term loans, 4.74% per annum. LIBOR Loans bear interest at LIBOR plus (y) for revolving loans, 3.50% per annum, and (z) for term loans, 5.74% per annum, in each case, provided that LIBOR will not be less than 0.50% per annum. Interest is due to be paid in cash on the last day of each applicable interest period (with rolling 30-day interest periods) and on the Maturity Date. We must pay certain fees to the administrative agent for the account of the lenders in connection with the First Lien Credit Agreement, including an unused fee for the account of the revolving lenders, which will accrue (i) 0.35% per annum on the daily amount of the unused revolving commitments when that amount is greater than or equal to 50% of the aggregate amount of revolving commitments, and (ii) 0.25% when that amount is less than 50% of the aggregate amount of revolving commitments. Accrued and unpaid unused fees will be payable quarterly in arrears during the term of the First Lien Credit Agreement and on the Revolving Termination Date (or any earlier date of termination of the revolving commitments or reduction of the revolving commitments to zero).

Letters of credit and the proceeds of revolving loans may be used (i) to refinance indebtedness under the Bridge Credit Agreement (which agreement was canceled and refinanced upon our entry into the Credit Agreements), (ii) for working capital and general corporate purposes (subject to certain exceptions set forth in the First Lien Credit Agreement, including limitations on investments in non-Borrowing Base Properties), and (iii) to fund professional fee payments and other fees and expenses subject to the provisions of the Plan and related confirmation order and for other uses permitted by the provisions of the First Lien Credit Agreement, Plan and confirmation order, in each case consistent with an approved annual business plan. The proceeds of term loans may only be used to refinance existing indebtedness under the 2018 Credit Agreement and the 7-Year Term Loan. We may terminate or reduce the amount of the revolving commitments at any time and from time to time without penalty or premium, subject to the terms of the First Lien Credit Agreement.

Second Lien Credit Agreement

On December 10, 2020, we also entered into a Second Lien Credit Agreement (the “Second Lien Credit Agreement”) with Wells Fargo Bank and the other financial institutions signatory thereto and their assignees for a $535.2 million secured second lien term loan facility (the “Second Lien Term Loan Facility”).

Amounts borrowed under the Second Lien Credit Agreement may be either Base Rate Loans or LIBOR Loans. Base Rate Loans bear interest at the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) the LIBOR Market Index Rate plus 1.0%, provided that the Base Rate will not be less than 1.50% per annum, in each case plus 7.00% per annum. LIBOR Loans bear interest at LIBOR plus 8.00% per annum, provided that LIBOR will not be less than 0.50% per annum. Interest is due to be paid in kind on the last day of each applicable interest period (with rolling 30-day interest periods) by adding the accrued and unpaid amount thereof to the principal balance of the loans under the Second Lien Credit Agreement and then accruing interest on the increased principal amount (provided that after the discharge of our Senior Debt Obligations, interest will be paid in cash). We must pay certain fees to the administrative agent for the account of the lenders in connection with the Second Lien Credit Agreement.

36

The proceeds of loans under the Second Lien Credit Agreement may only be used to refinance existing indebtedness under the 2018 Credit Agreement and the 7-Year Term Loan.

On February 8, 2021, the Company entered into the first amendment to the Second Lien Credit Agreement (“First Amendment”). The First Amendment provided for elimination of approximately $5.3 million of the disputed default interest that was capitalized into the principal balance of the Second Lien Term Loan Facility, reducing the outstanding principal amount of loans outstanding under the Second Lien Credit Agreement, retroactively as of December 10, 2020, to $535.2 million. The First Amendment also eliminated the disputed PIK interest that was capitalized through the date of the amendment.

On April 13, 2021, we entered into Agency Resignation, Appointment, Acceptance and Waiver Agreements pursuant to which Wells Fargo Bank resigned as Administrative Agent and Wilmington Savings Fund Society, FSB was appointed successor Administrative Agent under the First Lien Credit Agreement, the Second Lien Credit Agreement and, in each case, the related loan documents. There is currently no successor letter of credit issuer under the First Lien Revolving Facility, accordingly, the Company cannot currently access the letters of credit sub-facility.

See our Annual Report on Form 10-K for the year ended December 31, 2021 for additional information on the Credit Agreements.

FDP Loan Agreement

As described in note 4 of our consolidated financial statements, PM Gallery LP, a Delaware limited partnership and joint venture entity owned indirectly by us and The Macerich Company (“Macerich”), previously entered into a $250.0 million term loan in January 2018 (as amended in July 2019 to increase the total maximum potential borrowings to $350.0 million) to fund the ongoing redevelopment of Fashion District Philadelphia and to repay capital contributions to the venture previously made by the partners. On December 10, 2020, PM Gallery LP, together with certain other subsidiaries owned indirectly by us and Macerich (including the fee and leasehold owners of the properties that are part of the Fashion District Philadelphia project), entered into an Amended and Restated Term Loan Agreement (the “FDP Loan Agreement”). In connection with the execution of the FDP Loan Agreement, a $100.0 million principal payment was made (and funded indirectly by Macerich) to pay down the existing loan, reducing the outstanding principal under the FDP Loan Agreement from $301.0 million to $201.0 million. In connection with the execution of the FDP Loan Agreement, the governing structure of PM Gallery LP was modified such that, effective as of January 1, 2021, Macerich is responsible for the entity’s operations and, subject to limited exceptions, controls major decisions.

The FDP Loan Agreement provides for (i) a maturity date of January 22, 2023, with the potential for a one-year extension upon the borrowers’ satisfaction of certain conditions, (ii) an interest rate at the borrowers’ option with respect to each advance of either (A) the Base Rate (defined as the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50%, and (c) the LIBOR Market Index Rate plus 1.00%) plus 2.50% or (B) LIBOR for the applicable period plus 3.50%, (iii) a full recourse guarantee of 50% of the borrowers’ obligations by PREIT Associates, L.P., on a several basis, (iv) a full recourse guarantee of certain of the borrowers’ obligations by The Macerich Partnership, L.P., up to a maximum of $50.0 million, on a several basis, (v) a pledge of the equity interests of certain indirect subsidiaries of PREIT and Macerich, as well as of PREIT-RUBIN, Inc. and one of its subsidiaries, that have a direct or indirect ownership interest in the borrowers, (vi) a non-recourse carve-out guaranty and a hazardous materials indemnity by each of PREIT Associates, L.P. and The Macerich Partnership, L.P., and (vii) mortgages of the borrowers’ fee and leasehold interests in the properties that are part of the Fashion District Philadelphia project and certain other properties. The FDP Loan Agreement contains certain covenants typical for loans of its type. As noted above, PREIT Associates L.P. has severally guaranteed its 50% share of the FDP Term Loan (see Note 3 to our consolidated financial statements), which had $194.6 million outstanding as of March 31, 2022 (our share of which is $97.3 million). The joint venture also has the outstanding Partnership Loan of $118.6 million outstanding as of March 31, 2022 (our share of which is $59.3 million) and the proceeds of which were used to pay down the FDP Term Loan in December 2020. We monitor the joint venture's cash flow and its ability to meet its debt service requirements. If the joint venture were unable to satisfy its obligations under the FDP Term Loan, and we were required to satisfy the payment obligations under the guarantee, this could have a material impact on our liquidity and available capital resources. There are also circumstances in which a default of the FDP Term Loan could give rise to an event of default under our Credit Agreements.

37

Preferred Shares

We have 3,450,000 7.375% Series B Cumulative Redeemable Perpetual Preferred Shares (the “Series B Preferred Shares”) outstanding, 6,900,000 7.20% Series C Cumulative Redeemable Perpetual Preferred Shares (the “Series C Preferred Shares”) outstanding and 5,000,000 6.875% Series D Cumulative Redeemable Perpetual Preferred Shares (the “Series D Preferred Shares”) outstanding. Upon 30 days’ notice, we may redeem any or all of the Series B Preferred Shares or Series C Preferred Shares at $25.00 per share plus any accrued and unpaid dividends. We may not redeem the Series D Preferred Shares before September 15, 2022, except to preserve our status as a REIT or upon the occurrence of a Change of Control, as defined in the Trust Agreement addendums designating the Series D Preferred Shares. On and after January 27, 2022 and September 15, 2022, we may redeem any or all of the Series C Preferred Shares or the Series D Preferred Shares, respectively, at $25.00 per share plus any accrued and unpaid dividends. In addition, upon the occurrence of a Change of Control, we may redeem any or all of the Series D Preferred Shares for cash within 120 days after the first date on which such Change of Control occurs at $25.00 per share plus any accrued and unpaid dividends. The Series B Preferred Shares, the Series C Preferred Shares and the Series D Preferred Shares have no stated maturity, are not subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless we redeem or otherwise repurchase them or they are converted.

In 2020, the Company suspended payment of its preferred share dividends. Dividends on the Series B, Series C and Series D preferred shares are cumulative and therefore will continue to accrue at an annual rate of $1.8436 per share, $1.80 per share and $1.7188 per share, respectively. As of March 31, 2022, the cumulative amount of unpaid dividends on our issued and outstanding preferred shares totaled $47.9 million. This consisted of unpaid dividends per share on the Series B, Series C and Series D preferred shares of $3.23 per share, $3.15 per share and $3.01 per share, respectively.

Both the First Lien Credit Agreement and the Second Lien Credit Agreement prohibit any redemption of preferred shares so long as such agreements remain in effect.

Mortgage Loan Activity—Consolidated Properties

On December 10, 2021, we entered into an amendment to our mortgage loan secured by the property at Woodland Mall in Grand Rapids, Michigan, which provides for an extension of the maturity date until December 10, 2022. We capitalized $0.3 million of lender fees as additional debt issuance costs in connection with the amendment.

During the year ended December 31, 2020, we entered into forbearance and loan modification agreements for our consolidated properties Cherry Hill Mall, Cumberland Mall, Dartmouth Mall, Francis Scott Key Mall, Viewmont Mall, and Woodland Mall and for our unconsolidated partnership properties Metroplex and Springfield Mall. These arrangements allowed us to defer principal payments, and in some cases interest as well, on the mortgages between May and August of 2020 depending on the terms of the contract. At the end of each deferment period, the repayment period spans from four to six months to pay back the deferred amounts. The repayment periods ranged from August 2020 through February 2021 depending on the terms of the specific agreements. As of March 31, 2022, we had repaid all principal and interest deferrals.

In the second quarter of 2020, we defaulted on the mortgage loan secured by Valley View Mall due to a missed payment on June 1, 2020, and not paying the balloon payment of $27.2 million. In the third quarter of 2020, the operations of the property were transferred to a receiver and foreclosure was filed. We recorded a gain on derecognition of property during the third quarter 2020 and have recorded the mortgage balance and an offsetting contract asset on our consolidated balance sheets as of March 31, 2022 and December 31, 2021, both of which are to be eliminated when the property foreclosure sale is completed. In May 2022 the foreclosure proceedings were completed.

Mortgage Loans

Our mortgage loans, which are secured by nine of our consolidated properties, are due in installments over various terms extending to the year 2025. Our nine properties include Valley View Mall, which was assigned to a receiver in the third quarter 2020. Although we have not yet conveyed Valley View Mall because foreclosure proceedings are ongoing, we no longer control or operate the property as a result of a court order assigning the receiver. The mortgage principal balance of Valley View Mall was $27.2 million at March 31, 2022 and December 31, 2021, which we continue to recognize until the foreclosure process is complete. Six of these mortgage loans bear interest at fixed interest rates that range from 3.88% to 5.95% and had a weighted average interest rate of 4.09% at March 31, 2022. Three of our mortgage loans bear interest at variable rates and had a weighted average interest rate of 3.73% at March 31, 2022. The weighted average interest rate of all consolidated mortgage loans was 4.00% at March 31, 2022. Mortgage loans for properties owned by unconsolidated partnerships are accounted for in “Investments in partnerships, at equity” and “Distributions in excess of partnership investments,” and are not included in the table below.

38

The following table outlines the timing of principal payments and balloon payments pursuant to the terms of our mortgage loans on our consolidated properties as of March 31, 2022:

(in thousands of dollars)	Total		Remainder of 2022		2023-2024		2025-2026		Thereafter
Principal payments	$	26,607	$	9,209	$	12,992	$	4,406	$	—
Balloon payments		819,838		429,239		179,253		211,346		—
Total		846,445	$	438,448	$	192,245	$	215,752	$	—
Less: unamortized debt issuance costs		1,458
Carrying value of mortgage notes payable	$	844,987

Contractual Obligations

The following table presents our aggregate contractual obligations as of March 31, 2022 for the periods presented:

(in thousands of dollars)	Total		Remainder of 2022			2023-2024			2025-2026		Thereafter
Mortgage loans	$	846,445	$	438,448	(1)	$	192,245		$	215,752	$	—
Term Loans		1,011,940		—			1,011,940	(2)		—		—
First Lien Revolving Facility		53,818		53,818			—			—		—
Interest on indebtedness(3)		73,021		40,744			25,896			6,381		—
Operating leases		9,349		763			1,859			1,689		5,038
Ground leases		51,144		1,188			3,168			3,168		43,620
Finance leases		5,674		740			1,932			1,854		1,148
Development and redevelopment commitments(4)		4,076		2,195			1,881			—		—
Total	$	2,055,466	$	537,896		$	1,238,920		$	228,844	$	49,806

(1) The 2022 balance includes $27.2 million for our mortgage loan secured by Valley View Mall, which was in default as of March 31, 2022. We do not expect to pay the principal balance remaining.

(2) Includes our First Lien Term Loan of $377.7 million and the anticipated maturity date balance of our Second Lien Term Loan Facility of $634.2 million, which includes estimated capitalized PIK interest based on current interest rates.

(3) Includes interest payments expected to be made on consolidated debt, including those in connection with interest rate swap agreements.

(4) The timing of the payments of these amounts is uncertain. We expect that a significant majority of such payments (of which we include 100% of our obligations related to Fashion District Philadelphia, which opened in September 2019) will be made prior to December 31, 2022, but cannot provide any assurance that changed circumstances at these projects will not delay the settlement of these obligations.

Interest Rate Derivative Agreements

As of March 31, 2022, we had interest rate swap agreements designated in qualifying hedging relationships outstanding with a weighted average base interest rate of 2.70% on a notional amount of $300.0 million, maturing in May 2023. We originally entered into these interest rate swap agreements in order to hedge the interest payments associated with our issuances of variable interest rate long term debt. The interest rate swap agreements are net settled monthly.

For derivatives that have been designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in “Accumulated other comprehensive (loss) income” and subsequently reclassified into “Interest expense, net” in the same periods during which the hedged transaction affects earnings. Through December 10, 2020, all of our derivatives were designated and qualified as cash flow hedges of interest rate risk.

On December 10, 2020 as a result of the Financial Restructuring, we de-designated seven of our interest rate swaps which were previously designated cash flow hedges against the 2018 Credit Facility and 7-year Term Loan, as the hedged forecasted transactions were no longer probable to occur during the hedged time period due to the Financial Restructuring as described in Note 1. As such, the Company accelerated the reclassification of a portion of the amounts in other comprehensive (loss) income to earnings which resulted in a loss of $2.8 million that was recorded within interest expense, net in the consolidated statement of operations. Additionally, on December 10, 2020, the Company voluntarily de-designated the remaining thirteen interest swaps that were also previously designated as cash flow hedges against the 2018 Credit Facility and 7-year Term Loan. Upon de-designation, the accumulated other comprehensive (loss) income balance of each of these de-designated derivatives will be separately reclassified to earnings as the originally hedged forecasted transactions affect earnings. Through December 10, 2020, the changes in fair value of the derivatives were recorded to accumulated other comprehensive (loss) income in the consolidated balance sheets.

On December 22, 2020, we re-designated nine interest rate swaps with a notional amount of $375.0 million as cash flow hedges of interest rate risk against the First Lien Term Loan Facility. These interest rate swaps qualified for hedge accounting treatment with changes in the fair value of the derivatives recorded through accumulated other comprehensive (loss) income.

39

As of March 31, 2022, we had 7 total derivatives which were designated as cash flow hedges.

We recognize all derivatives at fair value as either assets or liabilities in the accompanying consolidated balance sheets. Our derivative assets are recorded in “Deferred costs and other assets” and our derivative liabilities are recorded in “Fair value of derivative instruments.”

Over the next twelve months we estimate that $2.7 million will be reclassified as an increase to interest expense in connection with our designated derivatives. The recognition of these amounts could be accelerated in the event that we repay amounts outstanding on the debt instruments and do not replace them with new borrowings.

Derivatives not designated as hedges are not speculative and are also used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements. For swaps that were not re-designated subsequent to December 10, 2020, changes in the fair value of derivatives are recorded directly in earnings as interest expense in the consolidated statement of operations. During the three months ended March 31, 2021 we had four non-designated swaps mature. As of March 31, 2022, we had no derivatives which were non-designated.

CASH FLOWS

Net cash provided by operating activities totaled $8.5 million for the three months ended March 31, 2022 compared to net cash provided by operating activities of $16.2 million for the three months ended March 31, 2021. This decrease in cash provided by operating activities was due to changes in working capital between periods primarily as a result of strong collections of outstanding accounts receivable in the prior year first quarter, which are included in change in other assets in our statement of cash flows.

Cash flows used in investing activities were $2.1 million for the three months ended March 31, 2022 compared to cash flows used in investing activities of $3.0 million for the three months ended March 31, 2021. Cash flows used in investing activities for the three months ended March 31, 2022 included $1.4 million of additions to construction in progress and $2.7 million of investments in real estate improvements offset by $2.4 million of proceeds from sale of preferred equity interest.

Cash flows used in investing activities for the three months ended March 31, 2021 included $1.0 million of additions to construction in progress and $1.9 million of investments in real estate improvements.

Cash flows used in financing activities were $3.3 million for the three months ended March 31, 2022 compared to cash flows used by financing activities of $10.6 for the three months ended March 31, 2021. Cash flows used in financing activities for the three months ended March 31, 2022 included $6.0 million of principal payments on mortgage loans, along with $0.2 million of deferred financing costs paid for our Woodland Mall mortgage extension. Aggregate repayments on our First Lien Revolving Facility and Term Loan were $0.7 million and $1.7 million. Additionally, the value of shares retired under the equity incentive plan, net of shares issued, was $5.4 million.

Cash flows used in financing activities for the three months ended March 31, 2021 included $9.5 million of principal payments on mortgage loans, along with $0.3 million of deferred financing costs paid for our Woodland Mall mortgage extension. We also had $0.6 million of shares retired under our equity compensation plan, net of shares issued.

ENVIRONMENTAL

We are aware of certain environmental matters at some of our properties. We have, in the past, performed remediation of such environmental matters, and we are not aware of any significant remaining potential liability relating to these environmental matters or of any obligation to satisfy requirements for further remediation. We may be required in the future to perform testing relating to these matters. We have insurance coverage for certain environmental claims up to $10.0 million per occurrence and up to $10.0 million in the aggregate over our two year policy term. See our Annual Report on Form 10-K for the year ended December 31, 2021, in the section entitled “Item 1A. Risk Factors— Risks Related to Our Business and Our Properties—We might incur costs to comply with environmental laws, which could have an adverse effect on our results of operations.”

COMPETITION AND TENANT CREDIT RISK

Competition in the retail real estate market is intense. We compete with other public and private retail real estate companies, including companies that own or manage malls, power centers, strip centers, lifestyle centers, factory outlet centers, theme/festival centers and community centers, as well as other commercial real estate developers and real estate owners, particularly those with properties near our properties, on the basis of several factors, including location and rent charged. We compete with these companies to attract customers to our properties, as well as to attract anchor and non-anchor store and other tenants. Our malls and our other operating properties face competition from similar retail, destination dining and entertainment centers, including more recently developed or renovated centers that are near our properties. We also face competition from a variety of different retail formats, including internet retailers, discount or value retailers, home shopping networks, mail order operators, catalogs, and telemarketers. Our tenants face competition from companies at the same and other properties and from other retail formats as well, including internet retailers. They also face competition for employees in the current largely constrained labor market, which could impact their operations and operation costs. This competition could have a material adverse effect on our ability to lease space and on the amount of rent and expense reimbursements that we receive.

40

The existence or development of competing retail properties and the related increased competition for tenants might, subject to the terms and conditions of the Credit Agreements, require us to make capital improvements to properties that we would have deferred or would not have otherwise planned to make and might also affect the total sales, occupancy and net operating income of such properties. Any such capital improvements, undertaken individually or collectively, would involve costs and expenses that could adversely affect our results of operations.

If we seek to make acquisitions, competitors (such as institutional investors, other REITs and other owner-operators of retail properties) might drive up the price we must pay for properties, parcels, other assets or other companies or might themselves succeed in acquiring those properties, parcels, assets or companies. In addition, our potential acquisition targets might find our competitors to be more attractive suitors if they have greater resources, are willing to pay more, or have a more compatible operating philosophy. We might not succeed in acquiring retail properties or development sites that we seek, or, if we pay a higher price for a property and/or generate lower cash flow from an acquired property than we expect, our investment returns will be reduced, which will adversely affect the value of our securities.

We receive a substantial portion of our operating income as rent under leases with tenants. At any time, any tenant having space in one or more of our properties could experience a downturn in its business that might weaken its financial condition. Such tenants might enter into or renew leases with relatively shorter terms. Such tenants might also defer or fail to make rental payments when due, delay or defer lease commencement, voluntarily vacate the premises or declare bankruptcy, which could result in the termination of the tenant’s lease or preclude the collection of rent in connection with the space for a period of time, and could result in material losses to us and harm to our results of operations. Also, it might take time to terminate leases of underperforming or nonperforming tenants and we might incur costs to remove such tenants. Some of our tenants occupy stores at multiple locations in our portfolio, and so the effect of any bankruptcy or store closings of those tenants might be more significant to us than the bankruptcy or store closings of other tenants. In addition, under many of our leases, our tenants pay rent based, in whole or in part, on a percentage of their sales. Accordingly, declines in these tenants’ sales directly affect our results of operations. Also, if tenants are unable to comply with the terms of their leases, or otherwise seek changes to the terms, including changes to the amount of rent, we might modify lease terms in ways that are less favorable to us. Given current conditions in the economy, certain industries and the capital markets, in some instances retailers that have sought protection from creditors under bankruptcy law have had difficulty in obtaining debtor-in-possession financing, which has decreased the likelihood that such retailers will emerge from bankruptcy protection and has limited their alternatives. All of these factors have been exacerbated by the impact of the COVID-19 pandemic in 2020, 2021 and the first quarter of 2022.

SEASONALITY

There is seasonality in the retail real estate industry. Retail property leases often provide for the payment of all or a portion of rent based on a percentage of a tenant’s sales revenue, or sales revenue over certain levels. Income from such rent is recorded only after the minimum sales levels have been met. The sales levels are often met in the fourth quarter, during the November/December holiday season. Also, many new and temporary leases are entered into later in the year in anticipation of the holiday season and a higher number of tenants vacate their space early in the year. As a result, our occupancy and cash flows are generally higher in the fourth quarter and lower in the first and second quarters. Our concentration in the retail sector increases our exposure to seasonality and has resulted, and is expected to continue to result, in a greater percentage of our cash flows being received in the fourth quarter.

INFLATION

Inflation can have many effects on financial performance. Retail property leases often provide for the payment of rent based on a percentage of sales, which might increase with inflation. Customers might spend less at our retailers, which might decrease our rent based on a percentage of sales, due to inflation. Leases might also provide for tenants to bear all or a portion of operating expenses, which might reduce the impact of such increases on us. However, rent increases might not keep up with inflation, or if we recover a smaller proportion of property operating expenses, we might bear more costs if such expenses increase because of inflation.

FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 , together with other statements and information publicly disseminated by us, contain certain forward-looking statements that can be identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “project,” “intend,” “may” or similar expressions. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters, including our expectations regarding the impact of COVID-19 on our business, that are not historical facts. These forward-looking statements reflect our current views about future events, achievements, results, cost reductions, dividend payments 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;

41

•the COVID-19 global pandemic and the public health and governmental response, which have created periods of significant economic disruption 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. We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

42

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

The analysis below presents the sensitivity of the market value of our financial instruments to selected changes in market interest rates. As of March 31, 2022, our consolidated debt portfolio consisted of $845.0 million of fixed and variable rate mortgage loans (net of debt issuance costs), $53.8 million outstanding under our First Lien Revolver, which bore interest at a rate of 4.0%, $377.7 million borrowed under our First Lien Term Loan Facility, which bore interest at a rate of 6.2%, and $598.8 million borrowed under our Second Lien Term Loan Facility, which bore interest at a rate of 8.5%.

Our mortgage loans, which are secured by nine of our consolidated properties, are due in installments over various terms extending to October 2025. Our nine properties include Valley View Mall, which was assigned to a receiver in the third quarter of 2020. Although we had not yet conveyed Valley View Mall due to ongoing foreclosure proceedings, we no longer control or operate the property as a result of court order assigning the receiver. The mortgage principal balance of Valley View Mall was $27.2 million at March 31, 2022 and December 31, 2021, which we continue to recognize until the foreclosure process is completed. In May 2022, the foreclosure proceedings were completed. Six of our mortgage loans bear interest at fixed interest rates that range from 3.88% to 5.95%, and had a weighted average interest rate of 4.09% at March 31, 2022. Three of our mortgage loans bear interest at variable rates, a portion of which has been swapped to fixed rates, and had a weighted average interest rate of 3.73% at March 31, 2022. The weighted average interest rate of all consolidated mortgage loans was 4.00% at March 31, 2022. Mortgage loans for properties owned by unconsolidated partnerships are accounted for in “Investments in partnerships, at equity” and “Distributions in excess of partnership investments” on the consolidated balance sheets and are not included in the table below.

Our interest rate risk is monitored using a variety of techniques. The table below presents the principal amounts of the expected annual maturities due in the respective years and the weighted average interest rates for the principal payments in the specified periods:

	Fixed Rate Debt					Variable Rate Debt
(in thousands of dollars) For the Year Ending December 31,	Principal Payments		Weighted Average Interest Rate(1)			Principal Payments			Weighted Average Interest Rate(1)
2022	$	325,698		3.96	%	$	1,143,087	(2)		7.44	%
2023		59,887		3.99	%		—			0.00	%
2024		6,405		4.04	%		125,953			3.83	%
2025		215,752		4.02	%		—			0.00	%
2026 and thereafter		—		—			—			—

(1) Based on the weighted average interest rates in effect as of March 31, 2022 and does not include the effect of our interest rate swap derivative instruments as described below.

(2) Includes term loan debt of $976.5 million under our First Lien Term Loan Facility and Second Lien Term Loan Facility with a weighted average interest rate of 7.63% as of March 31, 2022.

As of March 31, 2022, we had $1,269.0 million of variable rate debt. To manage interest rate risk and limit overall interest cost, we may employ interest rate swaps, options, forwards, caps and floors, or a combination thereof, depending on the underlying exposure. Interest rate differentials that arise under swap contracts are recognized in interest expense over the life of the contracts. If interest rates rise, the resulting cost of funds is expected to be lower than that which would have been available if debt with matching characteristics was issued directly. Conversely, if interest rates fall, the resulting costs would be expected to be, and in some cases have been, higher. We may also employ forwards or purchased options to hedge qualifying anticipated transactions. Gains and losses are deferred and recognized in net loss in the same period that the underlying transaction occurs, expires or is otherwise terminated. See Note 6 of the notes to our unaudited consolidated financial statements for further information.

As of March 31, 2022, we had interest rate swap agreements outstanding with a weighted average base interest rate of 2.70% on a notional amount of $300.0 million, maturing in May 2023. See Item 2. Management’s Discussion and Analysis—Liquidity and Capital Resources—Interest Rate Derivative Agreements for a discussion of changes to the designation of certain of our interest rate swap agreements in 2020.

Changes in market interest rates have different effects on the fixed and variable rate portions of our debt portfolio. A change in market interest rates applicable to the fixed portion of the debt portfolio affects the fair value, but it has no effect on interest incurred or cash flows. A change in market interest rates applicable to the variable portion of the debt portfolio affects the interest incurred and cash flows, but does not affect the fair value. The following sensitivity analysis related to our debt portfolio, which includes the effects of our interest rate swap agreements, assumes an immediate 100 basis point change in interest rates from their actual March 31, 2022 levels, with all other variables held constant.

A 100 basis point increase in market interest rates would have resulted in a decrease in our net financial instrument position of $34.1 million at March 31, 2022. A 100 basis point decrease in market interest rates would have resulted in an increase in our net financial instrument position

43

of $19.6 million at March 31, 2022. Based on the variable rate debt included in our debt portfolio at March 31, 2022, a 100 basis point increase in interest rates would have resulted in an additional $4.8 million in interest expense annually. A 100 basis point decrease would have reduced interest incurred by $4.8 million annually.

Because the information presented above includes only those exposures that existed as of March 31, 2022, it does not consider changes, exposures or positions which have arisen or could arise after that date. The information presented herein has limited predictive value. As a result, the ultimate realized gain or loss or expense with respect to interest rate fluctuations will depend on the exposures that arise during the period, our hedging strategies at the time and interest rates.

44

ITEM 4. CONTROLS AND PROCEDURES.

We are committed to providing accurate and timely disclosure in satisfaction of our SEC reporting obligations. In 2002, we established a Disclosure Committee to formalize our disclosure controls and procedures. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that:

• information that we are required to disclose in our reports under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and

• material information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

Our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") evaluated our disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, our CEO and CFO concluded that as of March 31, 2022, our disclosure controls and procedures were not effective due to the material weaknesses in our internal control over financial reporting.

The ineffectiveness of our internal control over financial reporting was due to material weaknesses in our internal control over financial reporting which we identified and previously reported in Item 9A of our Annual Report on Form 10-K for the year ended December 31, 2021.

Management’s Remediation Efforts

Management of the Company and the Board of Trustees are committed to maintaining a strong internal control environment and to making further progress in its remediation efforts during 2022. During 2021, we commenced efforts at the remediation of a material weakness identified as of December 31, 2020. Our remediation activities that commenced in 2021 did result in attracting and retaining sufficient personnel with requisite financial expertise and appropriately considering risks of fraud, including the possibility of management override of controls and proper segregation of duties, and our remediation activities are ongoing. The Company's 2021 remediation measures included the following:

•The Company hired and retained individuals with the appropriate skills and provided in-depth re-training to control owners related to technical accounting and internal control over financial reporting;

•The Company has enhanced its reconciliations and management review controls with the added stability of new hires and the implementation of technology solutions to automate visibility and enforcement of the independent review and documentation of journal entries, including proper segregation of duties, thus mitigating risks of both unintentional errors and fraud; and

•Development of processes and procedures to enhance the precision of management review of financial statement information including implementation of an automated workflow for manual journal entry review and posting.

Management believes that it is making progress with the ongoing remediation efforts to design, implement, and enhance precision of management review controls and ensure reliability of information used in the controls will reduce the risk that a material misstatement to the consolidated financial statements would not be prevented or detected on a timely basis. We will monitor and evaluate the remediation steps to ensure our internal control over financial reporting is effective to address control deficiencies or as we determine it necessary to modify the remediation plan described above. We will continue to report regularly to our Audit Committee on the progress of our remediation plan.

Changes in Internal Control over Financial Reporting

Other than our actions to remediate the material weaknesses relating to our internal controls over financial reporting as described above, there were no changes in our internal control over financial reporting during the quarter ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

45

PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

In the normal course of business, we have become and might in the future become involved in legal actions relating to our business, including but not limited to commercial disputes, rent collection actions and other matters related to the ownership and operation of our properties and the properties that we manage for third parties. In management’s opinion, the resolution of any such pending legal actions is not expected to have a material adverse effect on our consolidated financial position or results of operations.

On November 1, 2020, we and certain of our wholly owned subsidiaries commenced voluntary cases under chapter 11 of title 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware under the caption In re Pennsylvania Real Estate Investment Trust, et al. and filed our prepackaged chapter 11 plan of reorganization with the Bankruptcy Court. On November 30, 2020, the Bankruptcy Court entered an order confirming the Plan. The Plan became effective and we subsequently emerged from bankruptcy on December 10, 2020. The final decree closing the bankruptcy case was entered by the Bankruptcy Court on March 11, 2021.

ITEM 1A. RISK FACTORS.

In addition to the other information set forth in this report, you should carefully consider the risks that could materially affect our business, financial condition or results of operations, which are discussed under the caption “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

Issuer Purchases of Equity Securities

We did not acquire any shares in the three months ended March 31, 2022.

Limitations upon the Payment of Dividends

The Credit Agreements provide generally that we may only make dividend payments in the minimum amount necessary to maintain our status as a REIT. We must maintain our status as a REIT at all times.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

Preferred Dividend Arrearage

Dividends on the Series B, Series C and Series D preferred shares are cumulative and therefore will continue to accrue at an annual rate of $0.4609 per share, $0.45 per share and $0.4297 per share, respectively. As of May 6, 2022, the cumulative amount of unpaid dividends on our issued and outstanding preferred shares totaled $47.9 million. This consisted of unpaid dividends per share on the Series B, Series C and Series D preferred shares of $3.23 per share, $3.15 per share and $3.01 per share, respectively.

46

ITEM 6. EXHIBITS.

3.1	Amended and Restated Trust Agreement dated December 18, 2008, filed as Exhibit 3.1 to PREIT’s Current Report on Form 8-K filed on December 23, 2008, is incorporated herein by reference.
3.2	Amendment, dated June 7, 2012, to Amended and Restated Trust Agreement of Pennsylvania Real Estate Investment Trust dated December 18, 2008, as amended, filed as Exhibit 3.1 to PREIT’s Current Report on Form 8-K filed on June 12, 2012, is incorporated herein by reference.
3.3	Amendment to Amended and Restated Trust Agreement dated December 18, 2008, as amended, dated as of June 30, 2020, filed as Exhibit 3.1 to PREIT’s Current Report on Form 8-K filed on March 31, 2020, is incorporated herein by reference.
3.4	By-Laws of PREIT (as amended through March 31, 2020), filed as Exhibit 3.2 to PREIT’s Current Report on Form 8-K filed on March 31, 2020, is incorporated herein by reference.
3.5	Designating Amendment to Trust Agreement, designating the rights, preferences, privileges, qualifications, limitations and restrictions of PREIT’s 8.25% Series A Cumulative Redeemable Perpetual Preferred Shares, liquidation preference $25.00 per share, par value $0.01 per share, filed as Exhibit 3.2 to PREIT’s Form 8-A filed on April 20, 2012, is incorporated herein by reference.
3.6	Second Designating Amendment to Trust Agreement, designating the rights, preferences, privileges, qualifications, limitations and restrictions of PREIT’s 7.375% Series B Cumulative Redeemable Perpetual Preferred Shares, liquidation preference $25.00 per share, par value $0.01 per share, filed as Exhibit 3.2 to PREIT’s Form 8-A filed on October 11, 2012, is incorporated herein by reference.
3.7	Third Designating Amendment to Trust Agreement, designating the rights, preferences, privileges, qualifications, limitations and restrictions of PREIT’s 7.20% Series C Cumulative Redeemable Perpetual Preferred Shares, liquidation preference $25.00 per share, par value $0.01 per share, filed as Exhibit 3.4 to PREIT’s Form 8-A filed on January 27, 2017, is incorporated herein by reference.
3.8	Fourth Designating Amendment to Trust Agreement, designating the rights, preferences, privileges, qualifications, limitations and restrictions of PREIT’s 6.875% Series D Cumulative Redeemable Perpetual Preferred Shares, liquidation preference $25.00 per share, par value $0.01 per share, filed as Exhibit 3.5 to PREIT’s Form 8-A filed on September 11, 2017, is incorporated herein by reference.
10.1+*	2022-2024 Equity Award Program.
10.2+*	Form of Restricted Share Unit and Dividend Equivalent Rights Award Agreement.
10.3+*	Form of Performance Share Unit and Dividend Equivalent Rights Award Agreement.
10.4+*	Amendment No. 2 to Nonqualified Supplemental Executive Retirement Agreement dated as of March 28, 2022 by and between PREIT and Joseph F. Coradino.
31.1*	Certification pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*	Inline XBRL Taxonomy Extension Schema Document.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101.INS).

47

* Filed herewith

** Furnished herewith

+ Management contract or compensatory plan or arrangement.

48

SIGNATURE OF REGISTRANT

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
Date:	May 6, 2022
		By:	/s/ Joseph F. Coradino
			Joseph F. Coradino
			Chairman and Chief Executive Officer
		By:	/s/ Mario C. Ventresca, Jr.
			Mario C. Ventresca, Jr.
			Executive Vice President and Chief Financial Officer
		By:	/s/ Sathana Semonsky
			Sathana Semonsky
			Vice President and Chief Accounting Officer

49

EX-10.1

Exhibit 10.1

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

2022 - 2024 EQUITY AWARD PROGRAM

(Established under the Pennsylvania Real Estate Investment Trust

Amended and Restated 2018 Equity Incentive Plan)

1.	Purposes	1
2.	Definitions	1
3.	Award Agreement	4
4.	Performance Share Units	4
5.	Restricted Share Units	8
6.	DERs	8
7.	Holding Period	9
8.	Beneficiary Designation	9
9.	Delivery to Guardian	10
10.	Source of Shares	10
11.	Capital Adjustments	10
12.	Tax Withholding	10
13.	Administration	10
14.	Amendment and Termination	10
15.	Headings	11
16.	Incorporation of Plan by Reference	11
APPENDIX A		1
APPENDIX B		1
APPENDIX C		1
APPENDIX D		1

- i -

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

2022 - 2024 EQUITY AWARD PROGRAM

(Established under the Pennsylvania Real Estate Investment Trust

Amended and Restated 2018 Equity Incentive Plan)

PREAMBLE

WHEREAS, Pennsylvania Real Estate Investment Trust (the “Trust”) established, and its shareholders approved, the Pennsylvania Real Estate Investment Trust Amended and Restated 2018 Equity Incentive Plan (the “Plan”), primarily in order to award equity-based benefits to certain officers and other key employees of the Trust and its “Related Corporations” and “Subsidiary Entities” (both as defined in the Plan);

WHEREAS, the Trust’s Executive Compensation and Human Resources Committee (the “Committee”) is responsible for the administration of the Plan and may, pursuant to the powers granted to it thereunder, adopt rules and regulations for the administration of the Plan and determine the terms and conditions of each award granted thereunder;

WHEREAS, the Committee desires to establish a program for the 2022 through 2024 period under the Plan for the benefit of certain officers and other key employees of the Trust and PREIT Services, LLC (the “Program”), whereby such officers and key employees would receive time-based Restricted Share Units or RSUs under the Plan; and

WHEREAS, in addition to the grant of time-based Restricted Share Units, the Committee desires to award Performance Share Units or PSUs under the Plan.

NOW, THEREFORE, effective as of January 1, 2022, the Pennsylvania Real Estate Investment Trust 2022-2024 Equity Award Program is hereby adopted under the Plan by the Committee, with the following terms and conditions:

1. Purposes TC "1. Purposes" \l "1" \y. The purposes of this Program are to motivate certain officers and key employees of the Trust and its Related Corporations to reach and exceed challenging performance goals, and to focus the attention of the eligible officers and key employees on the critical financial indicators used to measure the success of the Trust and of other companies in the same business as the Trust.

2. Definitions TC "2. Definitions" \l "1" \y.

(a) “Award” means an award of Performance Share Units or Restricted Share Units to a Participant.

(b) “Award Agreement” means a written document evidencing the grant to a Participant of an Award, as described in Section 10.1 of the Plan.

(c) “Base Units” means PSU Base Units and RSU Base Units, collectively.

- 1 -

(d) “Board” means the Board of Trustees of the Trust.

(e) “Business Combination” means “Business Combination” as such term is defined in the definition of “Change in Control” in the Plan.

(f) “Cause” means “Cause” as such term is defined in a Participant’s Employment Agreement or, if the Participant is not a party to an Employment Agreement, then (solely for purposes of this Program) as set forth below –

(1) Fraud in connection with the Participant’s employment;

(2) Theft, misappropriation or embezzlement of funds of the Trust or its affiliates or of a successor company or affiliate thereof by the Participant;

(3) The Participant’s act resulting in termination pursuant to the provisions of the Trust’s Code of Business Conduct and Ethics for Employees and Officers (as modified, amended or supplemented from time to time) or of any similar code maintained by a successor company;

(4) Indictment of the Participant for a crime involving moral turpitude;

(5) The Participant’s breach of his or her obligations under a confidentiality agreement or non-competition agreement entered into with the Trust or an Affiliate or with a successor company or an affiliate thereof;

(6) Failure of the Participant to perform his or her duties to the Employer (other than on account of illness, accident, vacation or leave of absence) that persists – after written demand for substantial performance which specifically identifies the manner in which the Participant has failed to perform – for more than 30 calendar days after such notice to him or her; or

(7) The Participant’s repeated abuse of alcohol or drugs.

(g) “Change in Control” means “Change in Control” as such term is defined in the Plan.

(h) “Code” means the Internal Revenue Code of 1986, as amended, or any successor statute, as applicable.

(i) “Committee” means the Executive Compensation and Human Resources Committee of the Board, which Committee has developed the Program and has the responsibility to administer the Program under Section 3 of the Plan and Section 13 hereof.

(j) “DER” means “DER” (dividend equivalent right) as such term is defined in the Plan.

(k) “Disability Termination” means the termination of a Participant’s employment under the disability provisions of the Participant’s Employment Agreement or, if the Participant is not a party to an Employment Agreement, then as a result of a “Disability” as defined in the Plan.

- 2 -

(l) “Effective Date” means January 1, 2022.

(m) “Employer” means, collectively and individually (as applicable), the Trust and PREIT Services, LLC, and any other “Related Corporation” or “Subsidiary Entity” (both as defined in the Plan) that becomes an Employer under the Plan with the consent of the Trust.

(n) “Employment Agreement” means the written agreement entered into by a Participant and an Employer (if any) setting forth the terms and conditions of the Participant’s employment, as amended at any applicable time.

(o) “Good Reason” means “Good Reason” as such term is defined in a Participant’s Employment Agreement or, if the Participant is not a party to an Employment Agreement, then the relocation of the Participant’s principal business office to a new principal business office that is more than 50 miles from the Participant’s primary residence and at least 20 miles further from such residence that the Participant’s current principal business office, without the consent of the Participant.

(p) “Measurement Period” means the period beginning on the Effective Date and ending on the earlier of December 31, 2024, such earlier date declared by the Committee in connection with a termination of the Program or the date of a Change in Control (provided that, if the Change in Control arises from a Business Combination, the Measurement Period shall end on the date of the closing or effectiveness of the Business Combination, as applicable).

(q) “Participant” means each individual who has received an Award under the Program.

(r) “Performance Goals” means “Performance Goals” as such term is defined in the Plan.

(s) “Performance Share Unit” or “PSU” means a restricted share unit issued under the Plan subject to the Performance Goals set forth in the Program.

(t) “Plan” means the Pennsylvania Real Estate Investment Trust Amended and Restated 2018 Equity Incentive Plan, as it may be amended from time to time.

(u) “Program” means the Pennsylvania Real Estate Investment Trust 2022-2024 Equity Award Program (established under the Plan), as it may be amended from time to time.

(v) “PSU Base Units” means the number of Performance Share Units as set forth in an Award Agreement (increased by any additional Performance Share Units “purchased” pursuant to Section 6 hereof) by which the number of Shares that may be delivered to a Participant is measured.

(w) “Restricted Share Unit” or “RSU” means a restricted share unit issued under the Plan subject to time-based vesting.

(x) “RSU Base Units” means the number of Restricted Share Units as set forth in an Award Agreement (increased by any additional Restricted Share Units “purchased” pursuant to Section 6 hereof) by which the number of Shares that may be delivered to a Participant is measured.

- 3 -

(y) “Shares” means “Shares” as such term is defined in the Plan.

(z) “Share Value” means, as applicable and except as provided in the following sentence, the average of the closing prices of one Share on the New York Stock Exchange (the “NYSE”) (or, if not then listed on the NYSE, on the principal market or quotation system on which then traded) for: (i) the 20 days on which Shares were traded prior to the Effective Date (for the value of a Share on the Effective Date); (ii) the 20 days on which Shares were traded prior to and including the last day of the Measurement Period (for the value of a Share on the last day of the Measurement Period); (iii) the 20 days on which Shares were traded prior to and including the last day of the applicable RSU vesting date; or (iv) the 20 days on which the Shares were traded prior to and including the applicable dividend payment date (for the “purchase” of additional PSUs or RSUs or notional shares upon the payment of a dividend by the Trust). In the event of a Business Combination approved by the shareholders of the Trust on or prior to December 31, 2024, Share Value upon the closing of such Business Combination shall mean the final price per Share agreed upon by the parties to the Business Combination.

(aa) “Trust” means Pennsylvania Real Estate Investment Trust, a Pennsylvania business trust.

(bb) “Trustee” means a member of the Board.

3. Award Agreement TC "3. Award Agreement" \l "1" \y. Each Participant shall be issued Award Agreements setting forth the initial number of PSU Base Units and RSU Base Units. The award of such Base Units shall entitle the Participant to receive the number of Shares determined under Sections 4 and 5 hereof. Each Award Agreement, and any Shares which may be delivered thereunder, are subject to the terms of this Program and the terms of the Plan.

4. Performance Share Units TC "4. Performance Share Units" \l "1" \y.

(a) PSU Base Units Earned. The number of Shares to be issued by the Trust, if any, with respect to any award of PSU Base Units shall be determined based on the Trust’s achievement of the Operating Performance Goals (as defined below) for the Measurement Period as described in Section 4(b) hereof and a modification based on the Trust’s TRS (as defined below) performance for the Measurement Period, as described in and determined pursuant to Section 4(c) hereof. Also, except as otherwise provided in subsection (e) below, a Participant must be employed by an Employer on the last day of the Measurement Period in order to receive any Shares subject to Performance Goals under the Program. See Appendix A attached hereto for examples illustrating the operation of this Section.

(b) Operating Performance Goals. The Committee established in writing the objective operating Performance Goals to use under the Program (the “Operating Performance Goals”), consisting of “Core Mall Sales Per Square Foot,” “Average Quarterly Core Mall Total Occupancy” and “Corporate Debt Yield” metrics, each weighted 33.3%, and minimum, target and maximum ranges for each metric, by action taken on March 4, 2022. For each Operating Performance Goal, the multiplier related to the level of achievement during the Measurement Period is as follows:

- 4 -

Level of Achievement of Operating Performance Goal	Multiplier(1)
Below Minimum	0
Minimum	0.5
Target	1.0
Maximum	2.0

(1) Multiplier between performance measure goals determined by linear interpolation.

Once the applicable multiplier for each Operating Performance Goal is determined, the payout percentage of PSU Base Units (the “Payout Percentage”) shall be determined as follows: (1) the applicable multiplier of the Core Mall Sales Per Square Foot metric multiplied by 33.3%, plus (2) the applicable multiplier of the Average Quarterly Core Mall Total Occupancy metric multiplied by 33.3%, plus (3) the applicable multiplier of the Corporate Debt Yield metric multiplied by 33.3%.

Once the Payout Percentage is determined, it is multiplied by the number of a Participant’s PSU Base Units subject to the Program at the end of the Measurement Period, with the product being the preliminary number of Shares subject to modification as described in Section 4(c) hereof. To be clear, if, for the Measurement Period, the Trust does not achieve at least the minimum achievement for at least one of the Operating Performance Goals, the Trust shall not deliver to the Participants any Shares subject to Performance Goals under the Program.

(c) TRS Modifier. The preliminary number of Shares to be awarded, if any, as determined in accordance with Section 4(b) above, shall be adjusted, upwards or downwards, depending on the Trust’s performance, based on its “TRS” (as defined below), over the Measurement Period relative to the TRS performance of other real estate investment trusts comprising a leading index of retail real estate investment trusts (such adjustment as a percentage of the preliminary number of Shares, the “TRS Modifier”). The TRS Modifier shall be determined based on the whole percentile (expressed as a percentage equal to the percentile rounded up for fractions of one-half or greater) at which the Trust’s TRS for the Measurement Period places the Trust among the component members of the “FTSE Retail REIT Index” (as defined below) for the Measurement Period, each ranked pursuant to such TRS. Once the Trust’s percentile position within the FTSE Retail REIT Index is determined, the TRS Modifier shall be determined as follows:

 if the Trust’s TRS is equal to or below the 25th percentile on the FTSE Retail REIT Index, the TRS Modifier shall be 80%;

 if the Trust’s TRS is above the 25th percentile but less than the 50th percentile on the FTSE Retail REIT Index, the TRS Modifier shall be determined by linear interpolation between 80% at the 25th percentile (as set forth in the prior bullet), and 100% at the 50th percentile (as set forth in the subsequent bullet);

 if the Trust’s TRS is equal to the 50th percentile on the FTSE Retail REIT Index, the TRS Modifier shall be 100%;

 if the Trust’s TRS is above the 50th percentile and below the 75th percentile on the FTSE Retail REIT Index, the TRS Modifier shall be determined by linear interpolation between 100% at the 50th percentile (as set forth in the prior bullet), and 120% at the 75th percentile (as set forth in the subsequent bullet); and

- 5 -

 if the Trust’s TRS is equal to or above the 75th percentile on the FTSE Retail REIT Index, the TRS Modifier shall be 120%.

Once the TRS Modifier is determined, it is multiplied by the preliminary number of Shares determined pursuant to Section 4(b) hereof, with the product being the number of Shares awarded. The number of Shares that may be delivered shall not exceed 200% of the Participant’s PSU Base Units subject to the Program. Shares will be delivered under the Program to the extent that Shares remain available under the Plan. If the total number of Shares to be delivered exceeds the number of Shares available under the Plan, then the number of Shares for each Participant will be reduced on a pro rata basis based on each individual Participant’s PSU Base Units as compared to the total of all Participants’ PSU Base Units, each determined as of the last day of the Measurement Period.

(d) Definitions for this Section. The following terms shall be defined as set forth below:

(1) “FTSE Retail REIT Index” means the FTSE NAREIT US ALL Equity REIT Index – Retail Subset Index (as it may be renamed from time to time) or, in the event such index shall cease to be published, such other index as the Committee shall determine to be comparable thereto.

(2) “TRS” means total return to shareholders for the Measurement Period for the Trust and for the other component members of the FTSE Retail REIT Index. TRS is calculated by (i) adding ending Share Value to value of dividends paid during the Measurement Period, assuming for purposes of the calculation that such dividends were reinvested, (ii) dividing the result by the beginning Share Value and (iii) subtracting one from such quotient. “Component members” of the FTSE Retail REIT Index means those entities used for purposes of compiling the FTSE Retail REIT Index as of the first day of the Measurement Period, which are listed in Appendix D attached hereto, and that remain publicly held companies as of the last day of the Measurement Period, whether or not they are still included in the FTSE Retail REIT Index on such last day.

(e) Termination of Employment. Upon a Participant’s termination of employment on or prior to the last day of the Measurement Period, the following shall occur:

(1) Termination without Cause, for Good Reason, or on Account of Disability or Death. If, on or prior to the last day of the Measurement Period, (i) the Participant terminates his or her employment with the Employer for Good Reason, (ii) the Employer terminates the Participant’s employment for reasons other than for Cause, (iii) the Participant incurs a Disability Termination, or (iv) the Participant dies, the Participant (or the Participant’s beneficiary(ies), if applicable) shall be eligible to receive Shares in respect of the Participant’s PSU Base Units under the Program (or not) as though the Participant had remained employed by the Employer through the end of the Measurement Period.

(2) Termination for Any Other Reason. If, on or prior to the last day of the Measurement Period, the Participant’s employment with the Employer terminates for any reason other than a reason described in paragraph (1) above, the Participant shall forfeit all of his or her the PSU Base Units (and all of the Shares that may have become deliverable with respect to such PSU Base Units) under the Program.

- 6 -

(f) Determination of Performance; Share Delivery. Within 60 days after the end of the Measurement Period, the Committee shall provide each Participant with a written determination of whether the Trust did or did not attain the Performance Goals for the Measurement Period (and, if applicable, the extent to which each Performance Goal was attained) and the calculations used to make such determination. If Shares are to be delivered in respect of a Participant’s PSU Base Units under the Program, they shall be delivered to Participants no later than the March 15 following the end of the Measurement Period, unless the Measurement Period ends as a result of a Change in Control, in which case the Shares will be delivered to the Participants within five days following the end of the Measurement Period. Notwithstanding anything in the Program to the contrary, the Committee, in its sole discretion, may elect to settle Performance Share Units in cash based on the Fair Market Value of a Share on the settlement date.

(g) Elective Deferrals. Except in the event of delivery on account of a Change in Control, if Shares are to be delivered in respect of a Participant’s PSU Base Units under the Program, a Participant may elect to defer delivery (and the Trust shall defer issuance) of all or a portion of the Shares until, as specified in the Participant’s deferral election agreement, (i) the Participant’s separation from service from the Trust’s controlled group of entities and/or (ii) a date chosen by the Participant. The Participant may also elect in the deferral election agreement to receive Shares upon the occurrence of an “unforeseeable emergency,” as defined in section 409A(a)(2)(B)(ii) of the Code, to the extent not prohibited by that section of the Code and regulations issued thereunder. If a Change in Control or the Participant’s death occurs during the deferral period, the Participant’s Shares (and cash attributable to DERs) shall be delivered in a single sum to the Participant or to the Participant’s beneficiary(ies) (as applicable) on the 30th day after the Change in Control (provided that, if the Change in Control arises from a Business Combination, the Change in Control shall be deemed to occur on the date of the closing or effectiveness of the Business Combination, as applicable) or the Participant’s death (as applicable).

A Participant’s deferral election agreement must be submitted to the Committee no later than June 30, 2024 in order to be effective; otherwise, Shares (and cash attributable to DERs) deliverable to the Participant in respect of his or her Base Units if any, will be delivered no later than March 15, 2025. Unless the delivery of deferred Shares is occasioned by either of the events described in the last sentence of the preceding paragraph, if deferred Shares are to be delivered to a Participant who is a “specified employee,” as defined in section 409A(a)(2)(B)(i) of the Code, upon his or her separation from service from the Trust’s controlled group of entities, the Trust shall issue and deliver such deferred Shares (and cash attributable to DERs) on the date that is six months after the date of his or her separation from service. A deferral election agreement shall be substantially in the form set forth in Appendix B attached hereto.

Notwithstanding the foregoing, if a Participant’s PSU Base Units are settled in cash under Section 4(f) and a Participant has submitted a deferral election agreement deferring all or a portion of the Shares that may become deliverable in respect of the Participant’s Performance Share Units, payment of the cash attributable to such Shares shall be deferred until the date specified in the Participant’s deferral election agreement. Further, the deferred cash amount shall not accrue interest or be credited with any earnings.

The Committee intends to administer the Program, including the delivery of Shares under an election made pursuant to this subsection and the underlying deferral election agreement, in accordance with section 409A of the Code and regulations and other guidance issued thereunder,

- 7 -

but makes no representation with respect to the qualification of the Program or the Awards granted hereunder.

5. Restricted Share Units TC "5. Restricted Share Units" \l "1" \y.

(a) Vesting. Restricted Share Units awarded to each Participant shall vest in equal annual installments as set forth in the Award Agreement. The Committee may, in accordance with the Plan and to the extent permitted by section 409A of the Code (if applicable), at any time accelerate the time at which the restrictions on all or any part of the Restricted Share Units will lapse. All unvested RSUs awarded to a Participant shall become fully vested upon a Change in Control.

(b) Settlement of Restricted Share Units. Upon the RSU vesting date, the Trust shall transfer to the Participant one Share for each RSU Base Unit becoming vested on such date (the date of any such transfer shall be the “settlement date” for purposes of this Agreement); provided, however, the Trust may withhold shares otherwise transferable to the Participant to the extent necessary to satisfy withholding taxes due by reason of the vesting of the Restricted Share Units, in accordance with Section 12. The Participant shall have no rights as a shareholder with respect to the Restricted Share Units awarded hereunder prior to the date of issuance to the Participant of a certificate or certificates for such shares. Notwithstanding anything in the Program to the contrary, the Committee, in its sole discretion, may elect to settle Restricted Share Units in cash based on the Fair Market Value of a Share on the RSU vesting date.

(c) Termination of Employment. If the Participant’s employment terminates on account of his or her death or Disability, any otherwise unvested RSU Base Units that are held by the Participant at the time of such a termination of service shall then become fully vested and the Participant (or the Participant’s beneficiary(ies), if applicable) shall be eligible to receive Shares (or cash, if applicable) in respect of the Participant’s RSU Base Units under the Program.

6. DERs TC "6. DERs" \l "1" \y. Participants shall be awarded DERs with respect to their number of PSU Base Units and RSU Base Units. Each DER will be expressed as a specific dollar amount (the “Dollar Amount”) equal to the dollar amount of the dividend paid on an actual Share on a specific date (the “Dividend Date”) multiplied by the Participant’s number of PSU Base Units and RSU Base Units.

(a) For PSU Base Units, until the end of the Measurement Period, the Committee will apply the Dollar Amount to “purchase” a number of additional PSUs, respectively, equal to the Dollar Amount divided by the Share Value. The delivery of Shares in respect of such additional PSUs shall also be subject to the attainment of the Performance Goals set forth in Section 4. DERs shall also be awarded on such additional PSUs and applied in the same manner (thereby increasing the Participant’s PSU Base Units on a cumulative basis). PSUs deemed purchased with DERs hereunder may be whole or fractional units. The “purchase price” of the additional PSUs credited pursuant to the terms of the Program shall equal the Share Value as defined herein.

(b) For RSU Base Units, the Committee will apply the Dollar Amount to “purchase” a number of additional RSUs, respectively, equal to the Dollar Amount divided by the Share Value. Any additional RSUs credited to the foregoing provisions of this section shall be subject to satisfaction of the same vesting, payment and other terms and conditions as the original RSUs to which they relate. DERs shall also be awarded on such additional RSUs and applied in

- 8 -

the same manner (thereby increasing the Participant’s RSU Base Units on a cumulative basis). RSUs deemed purchased with DERs hereunder may be whole or fractional units. The “purchase price” of the additional RSUs credited pursuant to the terms of the Program shall equal the Share Value as defined herein.

(c) Participants who make a deferral election under Section 4(g) shall also be awarded DERs under the Plan with respect to their deferred Shares. Each such DER will be expressed as a Dollar Amount equal to the dollar amount of the dividend paid on an actual Share on a Dividend Date during the deferral period multiplied by the number of Shares still deferred by the Participant as of the Dividend Date. The Committee will apply the Dollar Amount to “purchase” notional shares (on which DERs thereafter will also be awarded and applied in the same manner). Notional shares deemed purchased with DERs hereunder may be whole or fractional share. DERs expressed as a Dollar Amount will continue to be applied to “purchase” notional shares on Dividend Dates until all of the Participant’s deferred Shares are delivered to the Participant (or to his or her beneficiary(ies), if applicable), as elected in his or her deferral election agreement. A Participant’s notional shares “purchased” with DERs awarded with respect to his or her deferred Shares shall be 100% vested at all times. Notwithstanding the foregoing, this subsection (c) shall not apply if a Participant’s PSU Base Units are settled in cash under Section 4(f).

(d) The Trust shall establish a bookkeeping account (the “DER Account”) for each such Participant and credit to such account the number of whole and fractional additional PSUs and RSUs, and notional shares deemed purchased with the Dollar Amounts. The Participant’s additional PSUs and RSUs, and notional shares shall be subject to the adjustments described in Section 11 hereof. All whole additional PSUs and RSUs (for which Shares become deliverable) and whole notional shares credited to a Participant’s DER Account shall be replaced by issued Shares on a one-to-one basis on the delivery date referred to in Section 4(f), 4(g) or 5(b), as applicable, and the fractional additional PSUs and RSUs (for which Shares become deliverable under this Section) and fractional notional shares credited to a Participant’s DER Account shall be aggregated and replaced by issued Shares on a one-for-one basis (and with cash in lieu of a fractional Share based on the closing price of a Share on the replacement date), and delivered to the Participant (or to his or her beneficiary(ies), if applicable) on the date the associated Shares are delivered to the Participant. Notwithstanding anything in the Program to the contrary, the Committee, in its sole discretion, may elect to settle a Participant’s DER Account in cash.

7. Holding Period TC "7. Holding Period" \l "1" \y. The Chief Executive Officer of the Trust and each Executive Vice President and Senior Vice President who receives Shares pursuant to RSUs and/or PSUs granted under this Program shall hold such Shares for a minimum of one year from the date such Shares are received.

8. Beneficiary Designation TC "8. Beneficiary Designation" \l "1" \y.

(a) Each Participant shall designate the person(s) as the beneficiary(ies) to whom any benefit under the Plan is to be paid in the event of the Participant’s death before the Participant receives any or all of such benefit. Each beneficiary designation shall be substantially in the form set forth in Appendix C attached hereto and shall be effective only when filed with the Committee during the Participant’s lifetime.

- 9 -

(b) Any beneficiary designation may be changed by a Participant without the consent of any previously designated beneficiary or any other person by the filing of a new beneficiary designation with the Committee. The filing of a new beneficiary designation shall cancel all beneficiary designations previously filed.

(c) If any Participant fails to designate a beneficiary in the manner provided above, or if the beneficiary designated by a Participant predeceases the Participant, the Committee shall direct such Participant’s Shares to be delivered to the Participant’s surviving spouse or, if the Participant has no surviving spouse, then to the Participant’s estate.

9. Delivery to Guardian TC "9. Delivery to Guardian" \l "1" \y. If Shares are issuable under this Program to a minor, a person declared incompetent, or a person incapable of handling the disposition of property, the Committee may direct the delivery of the Shares to the guardian, legal representative, or person having the care and custody of the minor, incompetent or incapable person. The Committee may require proof of incompetence, minority, incapacity or guardianship as the Committee may deem appropriate prior to the delivery. The delivery shall completely discharge the Committee, the Trustees and the Employer from all liability with respect to the Shares delivered.

10. Source of Shares TC "10. Source of Shares" \l "1" \y. This Program shall be unfunded, and the delivery of Shares shall be pursuant to the Plan. Each Participant and beneficiary shall be a general and unsecured creditor of the Employer to the extent of the Shares determined hereunder, and the Participant shall have no right, title or interest in any specific asset that the Employer may set aside, earmark or identify as reserved for the delivery of Shares under the Program. The Employer’s obligation under the Program shall be merely that of an unfunded and unsecured promise to deliver Shares in the future, provided the applicable Performance Goal is met as applicable. Except as expressly provided herein, no person shall be entitled to the privileges of ownership in respect of Shares that are subject to Awards hereunder until such Shares have been issued to that person.

11. Capital Adjustments TC "11. Capital Adjustments" \l "1" \y. Calculations required under the Program, the number of Base Units awarded under the Program, and the number of Shares that may be delivered under the Program in respect of such Base Units shall be adjusted to reflect any increase or decrease in the number of issued Shares resulting from a subdivision (share-split), consolidation (reverse split), share dividend, merger, spinoff or other similar event or transaction affecting the Trust during the Measurement Period.

12. Tax Withholding TC "12. Tax Withholding" \l "1" \y. The delivery of Shares (and cash, if applicable) to a Participant or beneficiary under this Program shall be subject to applicable tax withholding pursuant to Section 10.6 of the Plan.

13. Administration TC "13. Administration" \l "1" \y. This Program shall be administered by the Committee pursuant to the powers granted to it in Section 3 of the Plan.

14. Amendment and Termination TC "14. Amendment and Termination" \l "1" \y. The Committee reserves the right to amend the Program, by written resolution, at any time and from time to time in any fashion, provided any such amendment does not conflict with the terms of the Plan, and to terminate it at will. However, no amendment or termination of the Program

- 10 -

shall adversely affect any Award Agreement already issued under the Program without the written consent of the affected Participant(s).

15. Headings TC "15. Headings" \l "1" \y. The headings of the Sections and subsections of the Program are for reference only. In the event of a conflict between a heading and the content of a Section or subsection, the content of the Section or subsection shall control.

16. Incorporation of Plan by Reference TC "16. Incorporation of Plan by Reference" \l "1" \y. Because the Program is established under the Plan in order to provide for, and determine the terms and conditions of, the granting of certain Awards thereunder, the terms and conditions of the Plan are hereby incorporated by reference and made a part of this Program. If any terms of the Program conflict with the terms of the Plan, the terms of the Plan shall control.

- 11 -

APPENDIX A

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

2022-2024 EQUITY AWARD PROGRAM

(Established under the Pennsylvania Real Estate Investment Trust

Amended and Restated 2018 Equity Incentive Plan)

EXAMPLE OF BASE UNIT AWARDS

“A” is a participant in the Pennsylvania Real Estate Investment Trust 2022-2024 Equity Award Program (the “Program”).

The Share Value of a beneficial interest (a “Share”) in the “Trust” (as defined in the Program) on January 1, 2022 is $2, and the Share Value of a Share on December 31, 2024 is $5. For the three-year period beginning January 1, 2022 and ending December 31, 2024 (the “Measurement Period”), dividends total $0.10 per Share (and are paid in an equal amount over the last ten quarters of the measurement period – i.e., $.01 dividend per Share per quarter).

Award

Participant A receives a Performance Share Unit award for 250 “PSU Base Units” (as defined in the Program).

Dividends and Crediting Additional PSUs

Additional Performance Share Units are deemed purchased and credited on a quarterly basis using dividends deemed to be paid on the units. The purchase price of the additional Performance Share Units credited pursuant to the terms of the Program is the 20-day average share price prior to and including the date of the dividend.

The following table illustrates how dividends are deemed to be paid on the PSU Base Units and how additional Performance Share Units are credited and added to the aggregate number of PSU Base Units held by Participant A:

A - 1

Date	Aggregate PSU Base Units	Deemed Dividend	20-Day Average Share Price	Additional PSUs Credited
1/1/22	250.0	-	-	-
3/15/22	250.0	-	-	-
6/15/22	250.0	$2.50	$2.00	1.3
9/15/22	251.3	$2.51	$2.50	1.0
12/15/22	252.3	$2.52	$3.00	0.8
3/15/23	253.1	$2.53	$3.00	0.8
6/15/23	253.9	$2.54	$3.50	0.7
9/15/23	254.6	$2.55	$4.00	0.6
12/15/23	255.2	$2.55	$4.00	0.6
3/15/24	255.8	$2.56	$4.50	0.6
6/15/24	256.4	$2.56	$4.50	0.6
9/15/24	257	$2.57	$5.00	0.5
12/15/24	257.5	$2.57	$5.00	0.5
12/31/24	258	-	-	-

Achievement of Performance Goals and Payout of Shares

Performance Goals

Following the expiration of the Measurement Period, the Committee (as defined in the Program) determines the level of achievement and applicable multiplier of each of the target Operating Performance Goals (as defined in the Program) (which are based on core mall sales per square foot, average quarterly core mall total occupancy and corporate debt yield metrics). For each Operating Performance Goal, the multiplier related to the level of achievement during the Measurement Period is as follows:

Level of Achievement of Operating Performance Goal	Multiplier(1)
Below Minimum	0
Minimum	0.5
Target	1.0
Maximum	2.0

(1) Multiplier between performance measure goals determined by linear interpolation.

Once the applicable multiplier for each Operating Performance Goal is determined, the Payout Percentage (as defined in the Program) shall be determined as follows: (1) the applicable multiplier of the Core Mall Sales Per Square Foot metric multiplied by 33.3%, plus (2) the applicable multiplier of the Average Quarterly Core Mall Total Occupancy metric multiplied by 33.3%, plus (3) the applicable multiplier of the Corporate Debt Yield metric multiplied by 33.3%.

If, as of December 31, 2024, the Trust’s achievement of at least one Operating Performance Goal is at or above Minimum achievement level, the 258 PSU Base Units held by Participant A as of December 31, 2024, would be multiplied by the applicable Payout Percentage, with the product being the Preliminary Shares to be issued to Participant A subject to modification as discussed

A - 2

below based on the Trust’s relative TRS (defined below). If the Trust’s achievement of all Operating Performance Goals is below the Minimum achievement level, no Preliminary Shares will be issued.

As examples: (1) if the Trust’s achievement under both Operating Performance Goals is at Target, Participant A would receive 258 Preliminary Shares; (2) if the Trust’s achievement under both Operating Performance Goals is below the Minimum, Participant A would receive 0 Preliminary Shares; (3) if the Trust’s achievement is at Target for one Operating Performance Goal and at Maximum for the other Operating Performance Goal, Participant A would receive 387 Preliminary Shares; and (4) if the Trust’s achievement under both Operating Performance Goals is at Maximum, Participant A would receive 516 Preliminary Shares. The number of Preliminary Shares determined under the Operating Performance Goals would then be subject to modification based on the Trust’s TRS as discussed below, but in no case will the number of Shares delivered exceed 200% of Participant A’s PSU Base Units.

TRS Modifier

After the determination of the number of Preliminary Shares, the Committee determines where the Trust’s performance, based on its TRS (as defined in the Program), places the Trust among the component members of the “FTSE Retail REIT Index” (as defined in the Program) (the “Index”), ranked pursuant to each member’s TRS over the Measurement Period. The TRS Modifier (as defined in the Program) will be determined based on the following:

Percentile	TRS Modifier
25th or below	80%
Between 25th and50th	80% - 100%*
50th	100%
Between 50th and 75th	100% - 120%*
75th or above	120%

* If the TRS is above the 25th percentile but below the 50%, or above the 50th percentile but below the 75th percentile, then the percent of the number preliminary shares earned will be determined by linear interpolation between the 25th and 50th percentiles and 50th and 75th percentiles, as applicable.

Assume the Trust’s TRS for the Measurement Period is determined to be 20% as of December 31, 2024. Participant A’s Preliminary Shares would be multiplied by the applicable TRS Modifier, with the product being the number of Shares to be delivered. In no event shall the total number of Shares delivered exceed 200% of Participant A’s Base Units.

For example, if Participant A has 258 Preliminary Shares, and the Trust’s TRS places the Trust at the 50th percentile on the Index, Participant A would receive 258 Shares. If the Trust’s TRS places the Trust at the 24th percentile, Participant A would receive 206 Shares (and cash for

A - 3

the 0.4 Share). If the Trust’s TRS places the Trust at the 90th percentile, Participant A would receive 309 Shares (and cash for the 0.6 Share).

Settlement in Cash - If the Committee elects to settle the PSU Base Units in cash, the Participant would be paid an amount equal to the number of Shares times the Fair Market Value of a Share on the settlement date.

For example, if Participant A has 258 Preliminary Shares, and the Trust’s TRS places the Trust at the 50th percentile on the Index, Participant A would receive $1,290 ($5.00 x 258 of Shares). If the Trust’s TRS places the Trust at the 24th percentile, Participant A would receive $1,032 ($5.00 x 206.4 of Shares). If the Trust’s TRS places the Trust at the 90th percentile, Participant A would receive $1,548 ($5.00 x 309.6 of Shares).

A - 4

APPENDIX B

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

2022-2024 EQUITY AWARD PROGRAM

(Established under the Pennsylvania Real Estate Investment Trust

Amended and Restated 2018 Equity Incentive Plan)

DEFERRAL ELECTION AGREEMENT

The Pennsylvania Real Estate Investment Trust 2022-2024 Equity Award Program, effective as of January 1, 2022 (the “Program”), provides a select group of management or highly compensated employees with the ability to defer a portion of their compensation earned under the Program. The purpose of this Deferral Election Agreement is to allow you to defer the delivery of all or a portion of the Shares or cash issuable in respect of the Performance Share Units issued to you under the Program that are otherwise deliverable to you under the Program until one of the events selected below occurs.

AFTER YOU SIGN THIS DEFERRAL ELECTION AGREEMENT AND IT IS ACCEPTED BY PENNSYLVANIA REAL ESTATE INVESTMENT TRUST (THE “TRUST”), YOU MAY NOT REVOKE IT AFTER JUNE 30, 2024. IF YOU DECIDE SUBSEQUENTLY TO CHOOSE A LATER DELIVERY DATE, YOU MUST SUBMIT A NEW DEFERRAL ELECTION AGREEMENT AT LEAST 12 MONTHS PRIOR TO YOUR ORIGINAL DELIVERY DATE AND YOUR NEW DELIVERY DATE MUST BE AT LEAST FIVE YEARS AFTER YOUR ORIGINAL DELIVERY DATE. YOU MAY NOT, UNDER ANY CIRCUMSTANCES, ACCELERATE THE DELIVERY OF YOUR SHARES AFTER THIS DEFERRAL ELECTION AGREEMENT HAS BECOME EFFECTIVE (OTHER THAN AS A RESULT OF AN UNFORESEEABLE EMERGENCY, IF ELECTED BELOW).

You need only complete this Deferral Election Agreement if you wish to defer the delivery of Shares or cash that become deliverable to you under the Program. Capitalized terms in this Deferral Election Agreement are defined in the Program.

1. Participation Election

FORMCHECKBOX I hereby elect to defer under the terms of the Program the delivery of ______% [insert any whole percentage from one to 100 percent, inclusive] of the Shares or cash that may become deliverable to me in respect of my Performance Share Units under the Program, less any amounts necessary to satisfy any applicable FICA or state or local tax withholding obligations.

2. Delivery Date Election

I hereby elect to have the Trust deliver the percentage set forth above of the Shares or cash that may become deliverable to me in respect of my Performance Share Units under the Program upon the following event [check only one box]:

B - 1

FORMCHECKBOX (A) On the 10th calendar day after my separation from service from the Trust’s controlled group of entities (the date which is six months after such separation from service if I am a “specified employee” at that time – see Section 4(g) of the Program).

FORMCHECKBOX (B) On the following date: ___________ __, 20__ [must be after December 31, 2025].

FORMCHECKBOX (C) Upon the earlier of the 10th calendar day after my separation from service (as described in event (A) above) or the following date: ___________ __, 20__ [must be after December 31, 2025].

3. Acceleration in the Event of an Unforeseeable Emergency

In addition to the election I made in 2 above, if I check the following box, I also elect to have the Trust deliver Shares or cash, as applicable, to the extent permitted by applicable law, to me:

FORMCHECKBOX Upon an “Unforeseeable Emergency,” as defined in Section 4(g) of the Program. (This term is defined quite restrictively in the Internal Revenue Code. See the footnote on the previous page regarding consulting with your own tax advisor before completing this Deferral Election Agreement.)

4. Change in Control or Death

If a Change in Control or my death occurs before all of the Shares or cash are delivered to me, such Shares or cash shall be delivered in a single distribution to me or to my beneficiary(ies) designated in my Beneficiary Designation Form (as applicable) on the 30th day after such Change in Control (provided that, if the Change in Control arises from a Business Combination, the Change in Control shall be deemed to occur on the date of the closing or effectiveness of the Business Combination, as applicable) or death (as applicable). In addition, the Trust may distribute the Shares or cash to me prior to the date selected under Section 2 above to the extent such delivery is consistent with Section 409A of the Internal Revenue Code.

5. Cash in lieu of Shares.

I acknowledge and agree that the Committee, in its discretion, may elect to settle Performance Share Units in cash.

6. Insufficient Share Possibility

Because of the finite number of Shares available under the Pennsylvania Real Estate Investment Trust Amended and Restated 2018 Equity Incentive Plan, I understand that it is possible that not enough Shares will be available under the Plan to deliver all of the Shares otherwise required to be delivered to me (or to my beneficiary(ies)) on the deferral date(s) chosen in 2 and 3 above. I acknowledge and agree that in the event that an insufficient number of Shares are available under the Plan, cash will be delivered to me in lieu of Shares.

* * * * *

B - 2

By signing this Deferral Election Agreement, I agree to the terms and conditions of the Program as the Program now exists, and as it may be amended from time to time (provided that no amendment of the Program will adversely affect my rights under the Program without my written consent).

Signature of Participant Date

ACCEPTED:

Executive Compensation and Human Resources Committee

of Pennsylvania Real Estate Investment Trust

By:

Date:

B - 3

APPENDIX C

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

2022-2024 EQUITY AWARD PROGRAM

(Established under the Pennsylvania Real Estate Investment Trust

Amended and Restated 2018 Equity Incentive Plan)

BENEFICIARY DESIGNATION FORM

This Form is for your use under the Pennsylvania Real Estate Investment Trust 2022-2024 Equity Award Program (the “Program”) to name a beneficiary to whom any benefit under the Program is to be paid in the event of your death. You should complete the Form, sign it, have it signed by your Employer, and date it.

* * * *

I designate the following as my beneficiary(ies) to receive any benefits payable under the Program by reason of my death. I understand that if my designated beneficiary predeceases me, any benefits shall be paid to my surviving spouse or, if none, to my estate. I further understand that the last beneficiary designation filed by me during my lifetime and accepted by my Employer cancels all prior beneficiary designations previously filed by me under the Program.

I hereby state that ____________________________ [insert name], residing at ________________________________________________________________ [insert address], whose Social Security number is __________________, is designated as my beneficiary.

Signature of Participant Date

ACCEPTED:

[insert name of Employer]

By:

Date:

C- 1

ACTIVE.135442663.05

APPENDIX D

FTSE Retail REIT Index

(FTSE NAREIT US All Equity REIT Index – Retail Subset)

(Component Members as of January 1, 2022)

1. Acadia Realty Trust

2. Agree Realty Corporation

3. Alpine Income Property Trust, Inc

4. American Finance Trust, Inc.

5. Brixmor Property Group Inc.

6. Cedar Realty Trust, Inc.

7. Essential Properties Realty Trust

8. Federal Realty Investment Trust

9. Four Corners Property Trust, Inc.

10. Getty Realty Corp

11. InvenTrust Properties Corp.

12. Kimco Realty Corporation

13. Kite Realty Group Trust

14. Macerich Company

15. National Retail Properties, Inc.

16. NETSTREIT Corp.

17. Orion Office REIT, Inc.

18. Pennsylvania Real Estate Investment Trust

19. Phillips Edison & Company, Inc.

20. Postal Realty Trust, Inc. Class A

21. Realty Income Corporation

22. Regency Centers Corporation

23. Retail Opportunity Investments Corp.

24. Retail Value, Inc.

25. RPT Realty

26. Saul Centers, Inc.

27. Seritage Growth Properties Class A

28. Simon Property Group, Inc.

29. SITE Centers Corp.

30. Spirit Realty Capital, Inc.

31. STORE Capital Corporation

32. Tanger Factory Outlet Centers, Inc.

33. Urban Edge Properties

34. Urstadt Biddle Properties Inc.

35. Urstadt Biddle Properties Inc. Class A

36. Wheeler Real Estate Investment Trust, Inc.

37. Whitestone REIT

C- 1

ACTIVE.135442663.05

C- 2

ACTIVE.135442663.05

EX-10.2

Exhibit 10.2

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

AMENDED AND RESTATED
2018 EQUITY INCENTIVE PLAN

RESTRICTED SHARE UNIT AND DIVIDEND EQUIVALENT RIGHTS
AWARD AGREEMENT

ISSUED PURSUANT TO THE
2022-2024 EQUITY AWARD PROGRAM

This RESTRICTED SHARE UNIT AND DIVIDEND EQUIVALENT RIGHTS AWARD AGREEMENT (this “Award Agreement”) is effective as of the ____ of _______, ________ and is between Pennsylvania Real Estate Investment Trust, a Pennsylvania business trust (the “Trust”), and _________________________________ (the “Grantee”), a “Key Employee” under the Pennsylvania Real Estate Investment Trust Amended and Restated 2018 Equity Incentive Plan (the “Plan”).

WHEREAS, the Trust’s Executive Compensation and Human Resources Committee established the Pennsylvania Real Estate Investment Trust 2022-2024 Equity Award Program (the “Program”) under the Plan for specified Key Employees;

WHEREAS, the Program provides for the award of Restricted Share Units, as well as dividend equivalent rights or “DERs” with respect to such Restricted Share Units;

WHEREAS, DERs awarded with respect to Restricted Share Units will be expressed as a dollar amount, which will be applied to “purchase” additional Restricted Share Units and notional shares of the Trust, as applicable (on which DERs will also be awarded).

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the legal sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

1.Restricted Share Units.

a.The Grantee is hereby awarded a number of “RSU Base Units” equal to ______ Restricted Share Units. The Grantee’s RSU Base Units will increase in number pursuant to the “purchase” of additional Restricted Share Units with DERs, as described in subsection (c) below.

b.The Grantee is hereby awarded a DER with respect to each of his or RSU Base Units, as such number of units may be adjusted from time to time in accordance with the Program.

c.DERs awarded with respect to RSU Base Units will be expressed as a specific dollar amount equal in value to the amount of dividends paid on an actual Share on

a specific date (the “Dividend Date”) during the applicable vesting period, multiplied by the Grantee’s outstanding RSU Base Units as of the Dividend Date. The Committee will apply the dollar amount to “purchase” full and fractional Restricted Share Units at “Share Value” (as defined in the Program), which will be subject to Section 5 of the Program, and on which DERs thereafter will also be awarded.

d.This Award Agreement is in all respects limited and conditioned as hereinafter provided, and is subject in all respects to the terms and conditions of the Program and the Plan now in effect and as they may be amended from time to time; provided, that no amendment may adversely affect this Award Agreement without the written consent of the Grantee.

2.Vesting. The Grantee shall vest in the Restricted Share Units in accordance with the vesting schedule below provided that the Grantee is employed by the Employer on the applicable RSU Vesting Date:

RSU Vesting Date	Number of Restricted Share Units
__________, [2023]	________ Restricted Share Units
__________, [2024]	________ Restricted Share Units
__________, [2025]	________ Restricted Share Units]1

In addition, (i) all DERs awarded but unvested on an RSU Vesting Date shall become fully vested as of such RSU Vesting Date, and (ii) all of a Grantee’s unvested Base RSUs shall become fully vested upon a “Change in Control” (as defined in the Plan). Subject to the terms of the Plan, the “Committee” (as defined in the Plan) may at any time accelerate the time at which the restrictions on all or any part of the Base RSUs will lapse.

3.Termination of Service. If the Grantee’s service with the “Employer” (as defined in the Program) terminates on account of his or her death or “Disability” (as defined in the Plan), any otherwise unvested Base RSUs that are held by the Grantee at the time of such a termination of service shall then become fully vested and will be released from any otherwise applicable transfer restrictions. However, if the Grantee’s service with the Employer is terminated for any reason other than death or Disability, all unvested Base RSUs held by the Grantee at the time of such termination of service shall be forfeited.

4.Settlement of Base RSUs. As soon as practicable after an RSU Vesting Date, the Trust shall transfer to the Grantee one Share for each Base RSU becoming vested on such date (the date of any such transfer shall be the “settlement date” for purposes of this Agreement); provided, however, the Trust may withhold Shares otherwise transferable to the Grantee to the extent necessary to satisfy withholding taxes due by reason of the vesting of the Restricted Share Units, in accordance with Section 8. The Grantee shall have no rights as a shareholder with respect to the Base RSUs awarded hereunder prior to the date of issuance to the Grantee of a certificate or certificates for such shares. Notwithstanding the

foregoing, the Committee, in its sole discretion, may elect to settle Base RSUs in cash based on the Fair Market Value of a Share on the applicable RSU Vesting Date.

5.Share Delivery. Shares delivered pursuant to the Program shall be registered in the Grantee’s name (or, if the Grantee so requests, in the name of the Grantee and the Grantee’s spouse, jointly with right of survivorship).

6.No Rights as a Shareholder. The Grantee shall not have any rights as a shareholder with respect to any Shares subject to the Base RSUs awarded under this Agreement prior to the date of issuance to the Grantee of a certificate or certificates for such Shares.

7.Transferability. The Grantee may not, except by will or by the laws of descent and distribution, assign or transfer his or her Restricted Share Units or notional Shares. The Grantee may assign or transfer, in whole or in part, Shares delivered hereunder pursuant to the Program, subject to any restrictions imposed by applicable law or the Trust’s insider trading policies.

8.Withholding of Taxes. Payments made with respect to this Award will be subject to tax withholding to the extent required by law and in accordance with the terms of the Plan.

9.Share Retention Requirements. For purposes of the share retention requirements set forth in Section X of the Trust’s Corporate Governance Guidelines (the “Share Retention Requirements”), the Shares issued to the Grantee under the Program shall be treated as though they were restricted shares that became vested upon issuance. If the Grantee has not met the Share Retention Requirements when the Shares are issued, the Grantee shall be required to retain 100% of such Shares until such Share Retention Requirements have been satisfied. However, any share retention requirement that results from this provision shall immediately lapse upon the Participant’s termination of employment with the Employer.

10.Additional Holding Period. In addition to any restrictions imposed pursuant to Paragraph 9, if the Grantee is the Chief Executive Officer of the Trust, an Executive Vice President or a Senior Vice President, the Grantee hereby agrees that he or she shall hold any Shares received pursuant to RSUs granted under this Award for a minimum of one year from the date such Shares are received, even if the Grantee is otherwise in compliance with the Share Retention Requirements.

11.Recoupment Policy. The Grantee hereby agrees that any Shares delivered under this Award Agreement shall be subject to the Trust’s “Recoupment Policy” (if applicable to the Grantee) as in effect on the date the Restricted Share Units are granted under this Award Agreement, and as subsequently amended.

12.Governing Law. This Award Agreement shall be construed in accordance with, and its interpretation shall be governed by, applicable federal law and otherwise by the laws of the Commonwealth of Pennsylvania (without reference to the principles of the conflict of laws).

13.Controlling Documents. The terms and conditions of the Program and the Plan are incorporated herein by reference, made a part hereof, and shall control in the event of any conflict with any other terms of this Award Agreement.

14.Electronic Delivery of Documents. The Grantee hereby authorizes the Trust to deliver electronically any prospectuses or other documentation related to this Award, the Plan and any other compensation or benefit plan or arrangement in effect from time to time (including, without limitation, reports, proxy statements or other documents that are required to be delivered to participants in such plans or arrangements pursuant to federal or state laws, rules or regulations). For this purpose, electronic delivery will include, without limitation, delivery by means of e-mail or e-mail notification that such documentation is available on the Trust’s Intranet site. Upon written request, the Trust will provide to the Grantee a paper copy of any document also delivered to the Grantee electronically. The authorization described in this paragraph may be revoked by the Grantee at any time by written notice to the Trust.

15.Code Section 409A. Base RSUs payable under this Agreement are intended to be exempt from Code Section 409A under the exemption for short-term deferrals. Accordingly, Base RSUs will be settled no later than the Short-Term Deferral Period (as defined in the Plan) (i.e., no later than the 15th day of the third month following the end of the Grantee’s taxable year in which a Base RSU is no longer subject to a substantial risk of forfeiture).

[signature page follows]

IN WITNESS WHEREOF, the Trust has caused this Award Agreement to be duly executed by its duly authorized officer and the Grantee has hereunto set his or her hand and seal, all as of this ____ of _______, ________.

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

By:_____________________________________________

Name:

Title:

Grantee:_____________________________________________

Name:

Title:

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

2022-2024 EQUITY AWARD PROGRAM

(Established under the Pennsylvania Real Estate Investment Trust

Amended and Restated 2018 Equity Incentive Plan)

BENEFICIARY DESIGNATION FORM

This Form is for your use under the Pennsylvania Real Estate Investment Trust 2022-2024 Equity Award Program (the “Program”) to name a beneficiary to whom any benefit under the Program is to be paid in the event of your death. You should complete the Form, sign it, have it signed by your Employer, and date it.

* * * *

I designate the following as my beneficiary(ies) to receive any benefits payable under the Program by reason of my death. I understand that if my designated beneficiary predeceases me, any benefits shall be paid to my surviving spouse or, if none, to my estate. I further understand that the last beneficiary designation filed by me during my lifetime and accepted by my Employer cancels all prior beneficiary designations previously filed by me under the Program.

I hereby state that ______________________________________ [insert name], residing at ______________________________________ [insert address], whose Social Security number is __________________, is designated as my beneficiary.

__________________________ __________________________

Signature of Participant Date

ACCEPTED:

_____________________________________________

[insert name of Employer]

By:__________________________________________

Date: ________________________________________

EX-10.3

Exhibit 10.3

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

AMENDED AND RESTATED
2018 EQUITY INCENTIVE PLAN

PERFORMANCE SHARE UNIT AND DIVIDEND EQUIVALENT RIGHTS
AWARD AGREEMENT

ISSUED PURSUANT TO THE
2022-2024 EQUITY AWARD PROGRAM

This PERFORMANCE SHARE UNIT AND DIVIDEND EQUIVALENT RIGHTS AWARD AGREEMENT (this “Award Agreement”) is effective as of the ____ of _______, ________ and is between Pennsylvania Real Estate Investment Trust, a Pennsylvania business trust (the “Trust”), and _________________________________ (the “Grantee”), a “Key Employee” under the Pennsylvania Real Estate Investment Trust Amended and Restated 2018 Equity Incentive Plan (the “Plan”).

WHEREAS, the Trust’s Executive Compensation and Human Resources Committee established the Pennsylvania Real Estate Investment Trust 2022-2024 Equity Award Program (the “Program”) under the Plan for specified Key Employees;

WHEREAS, the Program provides for the award of Performance Share Units, as well as dividend equivalent rights or “DERs” with respect to such Performance Share Units;

WHEREAS, the Program designates Operating Performance Goals (as defined in the Program) and a TRS Modifier (as defined in the Program) that determine if and the extent to which Shares will become deliverable to a participant in the Program based on his or her Performance Share Units;

WHEREAS, the Committee has the authority to settle the Performance Share Units as well as any dividend equivalent rights or “DERs” with respect to such Performance Share Units in Shares or cash;

WHEREAS, the Grantee may defer delivery of his or her Shares (if deliverable) until a later date and, if so deferred, the Grantee will be awarded additional DERs with respect to such Shares, provided that if the Committee elects to settle the Performance Share Units in cash, a Grantee’s deferral election will apply to the cash settlement and no additional DERs will be awarded during the deferral period; and

WHEREAS, DERs awarded with respect to Performance Share Units and deferred Shares will be expressed as a dollar amount, which will be applied to “purchase” additional Performance Share Units and notional shares of the Trust, as applicable (on which DERs will also be awarded).

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the legal sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

1.Performance Share Units.

a.The Grantee is hereby awarded a number of “PSU Base Units” equal to ______ Performance Share Units. The Grantee’s PSU Base Units will increase in number pursuant to the “purchase” of additional Performance Share Units with DERs, as described in subsections (b) and (e) below.

b.The Grantee is hereby awarded a DER with respect to each of his or PSU Base Units, as such number of units may be adjusted from time to time in accordance with the Program. If the Grantee makes a deferral election under Section 4(g) of the Program, the Grantee shall also be awarded DERs with respect to each deferred Share; provided, that if the Committee elects to settle the PSU Base Units in cash and a Grantee makes a deferral election under Section 4(g) of the Program, no DERs shall be awarded during the deferral period.

c.The Trust hereby promises to deliver to the Grantee the number of Shares that Grantee becomes entitled to under Section 4 of the Program (if any). Unless the Grantee elects to make a deferral election pursuant to Section 4(g) of the Program, in which case Shares will be delivered in accordance with such election, the Shares shall be delivered no later than the March 15 following the end of the “Measurement Period” (as defined in the Program), unless the Measurement Period ends as a result of a “Change in Control” (as defined in the Program), in which case the Shares will be delivered to the Grantee within five days following the end of the Measurement Period (the “Delivery Date”). This Award Agreement is in all respects limited and conditioned as hereinafter provided, and is subject in all respects to the terms and conditions of the Program and the Plan now in effect and as they may be amended from time to time; provided, that no amendment may adversely affect this Award Agreement without the written consent of the Grantee. Notwithstanding the foregoing, the Committee, in its sole discretion, may elect to settle PSU Base Units in cash based on the Fair Market Value of a Share on the settlement date.

d.Pursuant to Section 4(e) of the Program, if the Grantee’s employment with the “Employer” (as defined in the Program) (i) is terminated by the Employer for reasons other than for “Cause” (as defined in the Program), (ii) is terminated by the Grantee for “Good Reason” (as defined in the Program), (iii) terminates on account of the Grantee’s death, or (iv) terminates as a “Disability Termination” (as defined in the Program), in each case on or before the last day of the Measurement Period, the Grantee shall nevertheless be eligible to receive Shares subject to the PSU Base Units the Grantee was granted under the Program (or not) as though the Grantee had remained employed by the Employer through the end of the Measurement Period. If the Grantee’s employment with the Employer terminates for any other reason, the Grantee shall forfeit all of his or her PSU Base Units (and all of the

Shares that may have become deliverable with respect to such PSU Base Units) under the Program.

e.DERs awarded with respect to PSU Base Units will be expressed as a specific dollar amount equal in value to the amount of dividends paid on an actual Share on a specific date (the “Dividend Date”) during the Measurement Period, multiplied by the Grantee’s PSU Base Units as of the Dividend Date. The Committee will apply the dollar amount to “purchase” full and fractional Performance Share Units at “Share Value” (as defined in the Program), which will be subject to Section 4 of the Program, and on which DERs thereafter will also be awarded. The Grantee’s additional Performance Share Units will be replaced by issued Shares (and by cash, to the extent the Grantee has a right to receive a fractional Share) and delivered to the Grantee (if at all) in accordance with Section 4 of the Program.

DERs awarded with respect to deferred Shares will also be expressed as a specific dollar amount equal in value to the amount of dividends paid on an actual Share on a Dividend Date during the deferral period, multiplied by the number of Shares still deferred by the Grantee as of the Dividend Date. The Committee will apply the dollar amount to “purchase” full and fractional notional shares at the closing price on the Dividend Date, on which DERs thereafter will also be awarded. The Grantee’s notional shares will be recorded in a bookkeeping account, and will be 100% vested. The Grantee’s notional shares will be replaced by issued Shares (and by cash, to the extent the Grantee holds a fractional notional share) and delivered to the Grantee (if at all) in accordance with Section 4 of the Program.

2.Share Delivery. Shares delivered pursuant to the Program shall be registered in the Grantee’s name (or, if the Grantee so requests, in the name of the Grantee and the Grantee’s spouse, jointly with right of survivorship).

3.Transferability. The Grantee may not, except by will or by the laws of descent and distribution, assign or transfer his or her Performance Share Units or notional Shares. The Grantee may assign or transfer, in whole or in part, Shares delivered hereunder pursuant to the Program, subject to any restrictions imposed by applicable law or the Trust’s insider trading policies.

4.Withholding of Taxes. Payments made with respect to this Award will be subject to tax withholding to the extent required by law and in accordance with the terms of the Plan.

5.Share Retention Requirements. For purposes of the share retention requirements set forth in Section X of the Trust’s Corporate Governance Guidelines (the “Share Retention Requirements”), the Shares issued to the Grantee under the Program shall be treated as though they were restricted shares that became vested upon issuance. If the Grantee has not met the Share Retention Requirements when the Shares are issued, the Grantee shall be required to retain 100% of such Shares until such Share Retention Requirements have been satisfied. However, any share retention requirement that results from this provision shall immediately lapse upon the Participant’s termination of employment with the Employer.

6.Additional Holding Period. In addition to any restrictions imposed pursuant to Paragraph 5, if the Grantee is the Chief Executive Officer of the Trust, an Executive Vice President or a Senior Vice President, the Grantee hereby agrees that he or she shall hold any Shares received pursuant to PSUs granted under this Award for a minimum of one year from the date such Shares are received, even if the Grantee is otherwise in compliance with the Share Retention Requirements.

7.Recoupment Policy. The Grantee hereby agrees that any Shares delivered under this Award Agreement shall be subject to the Trust’s “Recoupment Policy” (if applicable to the Grantee) as in effect on the date the Performance Share Units are granted under this Award Agreement, and as subsequently amended.

8.Governing Law. This Award Agreement shall be construed in accordance with, and its interpretation shall be governed by, applicable federal law and otherwise by the laws of the Commonwealth of Pennsylvania (without reference to the principles of the conflict of laws).

9.Controlling Documents. The terms and conditions of the Program and the Plan are incorporated herein by reference, made a part hereof, and shall control in the event of any conflict with any other terms of this Award Agreement.

10.Electronic Delivery of Documents. The Grantee hereby authorizes the Trust to deliver electronically any prospectuses or other documentation related to this Award, the Plan and any other compensation or benefit plan or arrangement in effect from time to time (including, without limitation, reports, proxy statements or other documents that are required to be delivered to participants in such plans or arrangements pursuant to federal or state laws, rules or regulations). For this purpose, electronic delivery will include, without limitation, delivery by means of e-mail or e-mail notification that such documentation is available on the Trust’s Intranet site. Upon written request, the Trust will provide to the Grantee a paper copy of any document also delivered to the Grantee electronically. The authorization described in this paragraph may be revoked by the Grantee at any time by written notice to the Trust.

[signature page follows]

IN WITNESS WHEREOF, the Trust has caused this Award Agreement to be duly executed by its duly authorized officer and the Grantee has hereunto set his or her hand and seal, all as of this ____ of _______, ________.

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

By:_____________________________________________

Name:

Title:

Grantee:_____________________________________________

Name:

Title:

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

2022-2024 EQUITY AWARD PROGRAM

(Established under the Pennsylvania Real Estate Investment Trust

Amended and Restated 2018 Equity Incentive Plan)

BENEFICIARY DESIGNATION FORM

This Form is for your use under the Pennsylvania Real Estate Investment Trust 2022-2024 Equity Award Program (the “Program”) to name a beneficiary to whom any benefit under the Program is to be paid in the event of your death. You should complete the Form, sign it, have it signed by your Employer, and date it.

* * * *

I designate the following as my beneficiary(ies) to receive any benefits payable under the Program by reason of my death. I understand that if my designated beneficiary predeceases me, any benefits shall be paid to my surviving spouse or, if none, to my estate. I further understand that the last beneficiary designation filed by me during my lifetime and accepted by my Employer cancels all prior beneficiary designations previously filed by me under the Program.

I hereby state that ______________________________________ [insert name], residing at ______________________________________ [insert address], whose Social Security number is __________________, is designated as my beneficiary.

__________________________ __________________________

Signature of Participant Date

ACCEPTED:

_____________________________________________

[insert name of Employer]

By:__________________________________________

Date: ________________________________________

EX-10.4

Exhibit 10.4

NONQUALIFIED SUPPLEMENTAL

EXECUTIVE RETIREMENT AGREEMENT

(Restated Effective as of January 1, 2012)

AMENDMENT NO. 2

WHEREAS, Pennsylvania Real Estate Investment Trust (the "Trust") maintains the Nonqualified Supplemental Executive Retirement Agreement for the benefit of Joseph F. Coradino (the “Executive”) restated effective as of January 1, 2012 (the “Agreement”);

WHEREAS, the nonqualified deferred compensation plan established pursuant to the Agreement was terminated effective as of May 12, 2021 and payment under the Agreement is delayed until July 29, 2022 pursuant to the provisions of Section 409A of the Internal Revenue Code of 1986, as amended and the Treasury Regulations thereunder; and

WHEREAS, a clarifying amendment is necessary to effectuate the intent of the parties to the Agreement;

WHEREAS, the Trust desires to amend the Agreement pursuant to Section 7 thereof;

NOW, THEREFORE, the Agreement is hereby amended as follows, effective as of provided therein:

1.Section 6 of the Agreement is hereby amended by adding a new sentence at the end thereof to read as follows:

Notwithstanding the foregoing, payments under this Agreement may be made to an individual other than the Executive prior to the date(s) set forth in paragraph 3 above and as otherwise permitted in accordance with section 409A of the Code and the Treasury Regulations thereunder pursuant to a valid domestic relations order (within the meaning of section 414(p)(1) of the Code) as provided under Treas. Reg.§ 1.409A-3(j)(4)(ii).

2.This Amendment shall be effective as of January 1, 2022.

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed this 28th day of March, 2022.

IN WITNESS WHEREOF, and as evidence of the adoption of this Amendment No. 2 to the Nonqualified Supplemental Executive Retirement Agreement for the benefit of Joseph F. Coradino restated effective as of January 1, 2012, the Trust has caused the same to be executed by its duly authorized officer this 28th day of March, 2022.

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

By:_/s/ Lisa M. Most___________________________

Name: Lisa M. Most

Title: Executive Vice President and General Counsel

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Joseph F. Coradino, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Pennsylvania Real Estate Investment Trust;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2022

	/s/ Joseph F. Coradino
Name:	Joseph F. Coradino
Title:	Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Mario C. Ventresca, Jr., certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Pennsylvania Real Estate Investment Trust;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2022

	/s/ Mario C. Ventresca, Jr.
Name:	Mario C. Ventresca, Jr.
Title:	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer

Pursuant to Section 906 of Sarbanes-Oxley Act of 2002

I, Joseph F. Coradino, the Chief Executive Officer of Pennsylvania Real Estate Investment Trust (the “Company”), hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) the Form 10-Q of the Company for the quarter ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Form 10-Q”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 6, 2022

	/s/ Joseph F. Coradino
Name:	Joseph F. Coradino
Title:	Chairman and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification of Chief Financial Officer

Pursuant to Section 906 of Sarbanes-Oxley Act of 2002

I, Mario C. Ventresca, Jr., the Executive Vice President and Chief Financial Officer of Pennsylvania Real Estate Investment Trust (the “Company”), hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) the Form 10-Q of the Company for the quarter ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Form 10-Q”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 6, 2022

	/s/ Mario C. Ventresca, Jr.
Name:	Mario C. Ventresca, Jr.
Title:	Executive Vice President and Chief Financial Officer

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 04, 2022
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Registrant Name	PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
Entity Central Index Key	0000077281
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Small Business	true
Entity File Number	001-6300
Entity Tax Identification Number	23-6216339
Entity Address, Address Line One	One Commerce Square
Entity Address, Address Line Two	2005 Market Street, Suite 1000
Entity Address, City or Town	Philadelphia
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19103
City Area Code	215
Local Phone Number	875-0700
Entity Common Stock, Shares Outstanding		80,612,437
Entity Incorporation, State or Country Code	PA
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false
Fair Value Measured at Net Asset Value Per Share
Document Information [Line Items]
Title of 12(b) Security	Shares of Beneficial Interest, par value $1.00 per share
Trading Symbol	PEI
Security Exchange Name	NYSE
Series B Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Series B Preferred Shares, par value $0.01 per share
Trading Symbol	PEIPrB
Security Exchange Name	NYSE
Series C Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Series C Preferred Shares, par value $0.01 per share
Trading Symbol	PEIPrC
Security Exchange Name	NYSE
Series D Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Series D Preferred Shares, par value $0.01 per share
Trading Symbol	PEIPrD
Security Exchange Name	NYSE

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
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	36,036	42,501
Intangible assets (net of accumulated amortization of $21,900 and $21,598 at March 31, 2022 and December 31, 2021, respectively)	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 Facilities	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 instruments	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:
Shares of beneficial interest, $1.00 par value per share; 200,000 shares authorized; 80,617 and 80,200 shares issued and outstanding at March 31, 2022 and December 31, 2021, 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 (deficit) - 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
Series B Preferred Stock
EQUITY:
Preferred Shares	35	35
Series C Preferred Stock
EQUITY:
Preferred Shares	69	69
Series D Preferred Stock
EQUITY:
Preferred Shares	$ 50	$ 50

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Intangible assets, accumulated amortization	$ 21,900,000	$ 21,598,000
Preferred shares, authorized (in shares)	25,000,000.0
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	80,617,000	80,200,000
Common stock, shares outstanding (in shares)	80,617,000	80,200,000
Series B Preferred Stock
Preferred shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred shares, authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	3,450,000	3,450,000
Preferred shares, outstanding (in shares)	3,450,000	3,450,000
Liquidation preference	$ 97,381,000	$ 95,791,000
Series C Preferred Stock
Preferred shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred shares, authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	6,900,000	6,900,000
Preferred shares, outstanding (in shares)	6,900,000	6,900,000
Liquidation preference	$ 194,235,000	$ 191,130,000
Series D Preferred Stock
Preferred shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred shares, authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	5,000,000	5,000,000
Preferred shares, outstanding (in shares)	5,000,000	5,000,000
Liquidation preference	$ 140,040,000	$ 137,891,000

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021
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
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		0	(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	0
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)
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: (in dollars per share)		$ (0.49)	$ (0.64)
Weighted average shares outstanding-basic (in shares)		79,577	77,647
Effect of common share equivalents (in shares)	[1]	0	0
Weighted average shares outstanding-diluted (in shares)		79,577	77,647

[1] The Company had net losses used to calculate earnings per share for the three months ended March 31, 2022 and 2021. 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.

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Comprehensive loss:
Net loss	$ (32,973)	$ (43,980)
Unrealized gain (loss) on derivatives	5,807	2,601
Amortization of settled swaps	0	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)

XML

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Shares of Beneficial Interest, $1.00 Par	Capital Contributed in Excess of Par	Accumulated Other Comprehensive Loss	Distributions in Excess of Net Income	Non- controlling interest	Series B Preferred Stock Preferred Shares $.01 par	Series C Preferred Stock Preferred Shares $.01 par	Series D Preferred Stock Preferred Shares $.01 par
Beginning balance at Dec. 31, 2020	$ 126,940	$ 79,537	$ 1,771,777	$ (20,620)	$ (1,699,638)	$ (4,270)	$ 35	$ 69	$ 50
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(43,980)				(42,746)	(1,234)
Other comprehensive income (loss)	2,604			2,540		64
Shares issued under employee compensation plans, net of shares retired	(647)	(277)	(370)
Amortization of deferred compensation	1,321		1,321
Ending balance at Mar. 31, 2021	86,238	79,260	1,772,728	(18,080)	(1,742,384)	(5,440)	35	69	50
Beginning balance at Dec. 31, 2021	7,047	80,200	1,777,013	(8,830)	(1,832,375)	(9,115)	35	69	50
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(32,973)				(32,469)	(504)
Other comprehensive income (loss)	5,807			5,734		73
Shares issued under employee compensation plans, net of shares retired	4,449	417	4,032
Amortization of deferred compensation	814		814
Ending balance at Mar. 31, 2022	$ (14,856)	$ 80,617	$ 1,781,859	$ (3,096)	$ (1,864,844)	$ (9,546)	$ 35	$ 69	$ 50

XML

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Series B Preferred Stock
Preferred shares, par value (in dollars per share)	0.01	0.01	$ 0.01
Series C Preferred Stock
Preferred shares, par value (in dollars per share)	0.01	0.01	0.01
Series D Preferred Stock
Preferred shares, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net loss	$ (32,973)	$ (43,980)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	27,436	28,149
Amortization	2,098	2,141
Straight-line rent adjustments	290	6
Amortization of deferred compensation	(165)	1,321
Gain on sale of preferred equity interest	(3,688)	0
Paid-in-kind interest	12,547	11,514
Gain on hedge ineffectiveness	(8)	(1,303)
Equity in loss (income) of partnerships	395	3,433
Cash distributions from partnerships	1,570	0
Change in assets and liabilities:
Net change in other assets	7,161	18,805
Net change in other liabilities	(6,209)	(3,860)
Net cash provided by operating activities	8,454	16,226
Cash flows from investing activities:
Investments in real estate improvements	(2,746)	(1,928)
Additions to construction in progress	(1,385)	(1,029)
Investments in partnerships	(415)	(2)
Capitalized leasing costs	(29)	0
Proceeds from sale of preferred equity interest	2,438	0
Additions to leasehold improvements and corporate fixed assets	0	(7)
Net cash used in investing activities	(2,137)	(2,966)
Cash flows from financing activities:
Net repayments under the Restructured Revolver	0	0
Net repayments to term loans	(2,437)	0
Repayments of finance lease liabilities	0	(170)
Principal installments on mortgage loans	(6,048)	(9,505)
Payment of deferred financing costs	(235)	(253)
Value of shares retired under equity incentive plans, net of shares issued	5,427	(647)
Net cash used in financing activities	(3,293)	(10,575)
Net change in cash, cash equivalents, and restricted cash	3,024	2,685
Cash, cash equivalents, and restricted cash, beginning of period	58,077	51,231
Cash, cash equivalents, and restricted cash, end of period	$ 61,101	$ 53,916

XML

Basis of Presentation

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation

1. BASIS OF PRESENTATION

Nature of Operations

Pennsylvania Real Estate Investment Trust (“PREIT” or the “Company”) prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. Our unaudited consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in PREIT’s Annual Report on Form 10-K for the year ended December 31, 2021. In our opinion, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, the consolidated results of our operations, consolidated statements of comprehensive loss, consolidated statements of equity and our consolidated statements of cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year.

PREIT, a Pennsylvania business trust founded in 1960 and one of the first equity real estate investment trusts (“REITs”) in the United States, has a primary investment focus on retail shopping malls located in the eastern half of the United States, primarily in the Mid-Atlantic region. As of March 31, 2022, our portfolio consists of a total of 25 properties operating in nine states, including 20 shopping malls, four other retail properties and one development property. The property in our portfolio that is classified as under development does not currently have any activity occurring.

We hold our interest in our portfolio of properties through our operating partnership, PREIT Associates, L.P. (“PREIT Associates” or the “Operating Partnership”). We are the sole general partner of the Operating Partnership and, as of March 31, 2022, we held a 98.7% controlling interest in the Operating Partnership and consolidated it for reporting purposes. The presentation of consolidated financial statements does not itself imply that the assets of any consolidated entity (including any special-purpose entity formed for a particular project) are available to pay the liabilities of any other consolidated entity, or that the liabilities of any consolidated entity (including any special-purpose entity formed for a particular project) are obligations of any other consolidated entity.

Pursuant to the terms of the partnership agreement of the Operating Partnership, each of the limited partners has the right to redeem such partner’s units of limited partnership interest in the Operating Partnership (“OP Units”) for cash or, at our election, we may acquire such OP Units in exchange for our common shares on a one-for-one basis, in some cases beginning one year following the respective issue date of the OP Units and in other cases immediately. If all of the outstanding OP Units held by limited partners had been redeemed for cash as of March 31, 2022, the total amount that would have been distributed would have been $0.6 million based on the number of outstanding OP Units held by limited partners of 1,030,510 as of March 31, 2022. The current terms of our credit agreements prohibit the Company from acquiring whole share OP Units for cash and, as such, any whole share OP Units presented for redemption will be redeemed for shares. Partial share OP Unit redemptions will be redeemed for cash.

We provide management, leasing and real estate development services through two of our subsidiaries: PREIT Services, LLC (“PREIT Services”), which generally develops and manages properties that we consolidate for financial reporting purposes, and PREIT-RUBIN, Inc. (“PRI”), which generally develops and manages properties that we do not consolidate for financial reporting purposes, including properties owned by partnerships in which we own an interest, and properties that are owned by third parties in which we do not have an interest. PREIT Services and PRI are consolidated. PRI is a taxable REIT subsidiary, as defined by federal tax laws, which means that it is able to offer an expanded menu of services to tenants without jeopardizing our continuing qualification as a REIT under federal tax law.

We evaluate operating results and allocate resources on a property-by-property basis, and do not distinguish or evaluate our consolidated operations on a geographic basis. Due to the nature of our operating properties, which involve retail shopping, dining, entertainment and certain non-traditional tenant operations, we have concluded that our individual properties have similar economic characteristics and meet all other aggregation criteria. Accordingly, we have aggregated our individual properties into one reportable segment. In addition, no single tenant accounts for 10% or more of consolidated revenue, and none of our properties are located outside the United States.

COVID-19 Related Risks and Uncertainties

The COVID-19 global pandemic that began in 2020 has adversely impacted and continues to impact our business, financial condition, liquidity and operating results, as well as our tenants’ businesses. The prolonged evolution of the pandemic has also led to periods of unprecedented global economic disruption and volatility in financial markets. Some of our tenants’ financial health and business viability have been adversely impacted and their creditworthiness has deteriorated. We anticipate that our future business, financial condition, liquidity and results of operations, including in 2022 and potentially in future periods, will continue to be materially impacted by the COVID-19 pandemic. Although

we have operated in the COVID-19 environment for approximately two years, uncertainty remains as to how long the global pandemic, economic challenges and various limitations and disruptions to business operations will continue to impact us or our tenants.

COVID-19 closures of our properties began on March 12, 2020 and continued through the reopening of our last property on July 3, 2020; all of our properties have remained open since that time and are employing safety and sanitation measures designed to address the risks posed by COVID-19. Despite the increased vaccination rates in the country, some of our tenants are still operating at reduced capacity. The significance of the prolonged pandemic on our business, however, will continue to depend on, among other things, the resurgences of outbreaks, the severity of the disease and the number of people infected with the virus, and certain variants thereof, vaccination rates in regions in which our properties are located, further effects on the economy of the pandemic and of the measures taken by governmental authorities and other third parties restricting daily activities and the length of time that such measures remain in place or are renewed, implementation of governmental programs to assist businesses and consumers impacted by the COVID-19 pandemic, and the effect of any changes to current restrictions or recommended protocols, all of which could vary by geographic region in which our properties are located. We continue to experience uncertainty as to whether government authorities will maintain the relaxation of current restrictions on businesses in the regions in which our properties are located, and whether government authorities will issue recommendations or impose requirements on landlords like us to further enhance health and safety protocols, or whether we will voluntarily adopt any of these requirements ourselves, which could result in increased operating costs and demands on our property management teams to ensure compliance with any of these requirements.

Going Concern Considerations

Under the accounting guidance related to the presentation of financial statements, when preparing financial statements for each annual and interim reporting period, management has the responsibility to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. As a result of the considerations articulated below, we believe there is substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued.

In applying the accounting guidance, management considered our current financial condition and liquidity sources, including current funds available, forecasted future cash flows and our conditional and unconditional obligations due over the next twelve months. Management specifically considered Fashion District Philadelphia’s Amended and Restated Term Loan Agreement (“FDP Loan Agreement”), which matures in January 2023 and includes a quarterly covenant provision as an event or condition that raises substantial doubt about our ability to continue as a going concern.

The FDP Loan Agreement has a balance of $194.6 million at March 31, 2022, and matures in January 2023, with an option to extend maturity to January 2024. This agreement also contains a 10% quarterly debt yield covenant which began on December 31, 2021. As of December 31, 2021, the FDP joint venture entity borrower, PM Gallery L.P., did not meet the minimum 10% debt yield covenant, which triggered the lender to sweep cash from the property. This is not an event of default. As of June 30, 2022, the debt yield covenant threshold will be 9%, subsequent to which the joint venture would be required to pay down the term loan to achieve a 9% debt yield. Based on the joint venture’s current forecast, management projects that the joint venture will not be able to meet this covenant as the debt yield is projected to be under 9%. To the extent the term loan is not paid down by the joint venture, this term loan could become due and payable during the second half of 2022. The Company guarantees 50% of the joint venture’s obligations under the FDP Loan Agreement and management projects that the Company would not be able to satisfy its obligations if the FDP term loan would become due and payable in 2022. The Company plans to work with its joint venture partner to satisfy any obligations coming due under the FDP Loan Agreement should it become due and payable as a result of the joint venture not meeting the debt yield covenant.

However, our ability to satisfy obligations under the FDP Loan Agreement depends primarily on management’s ability to obtain relief from the joint venture’s lender in regard to the Company’s guarantee of 50% of the outstanding debt balance. Obtaining relief from the FDP Loan Agreement lender involves performance by third parties and therefore cannot be considered probable of occurring. Therefore, due to the inherent risks, unknown results and significant uncertainties associated with this matter and the direct correlation to our ability to satisfy our financial obligations that may arise over the applicable twelve month period, we are unable to conclude that it is probable that we will be able to meet our obligations arising within twelve months of the date of issuance of these financial statements under the parameters set forth in this accounting guidance.

Fair Value

Fair value accounting applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements. Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, these accounting requirements establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the

reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access.

Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs might include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs for the asset or liability, and are typically based on an entity’s own assumptions, as there is little, if any, related market activity.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We utilize the fair value hierarchy in our accounting for derivatives (Level 2) and financial instruments (Level 2) and in our reviews for impairment of real estate assets (Level 3) and goodwill (Level 3).

Impairment of Assets

Real estate investments and related intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the property might not be recoverable, which is referred to as a “triggering event.” During the first quarter of 2022, certain of our properties had triggering events due to various indicators of impairment, however, based on our assessment of the undiscounted future cash flows, we did not identify any impairments. In connection with our review of our long-lived assets for impairment, we utilize qualitative and quantitative factors in order to estimate fair value. The significant qualitative factors that we use include age and condition of the property, market conditions in the property’s trade area, competition with other shopping centers within the property’s trade area and the creditworthiness and performance of the property’s tenants. The significant quantitative factors that we use include historical and forecasted financial and operating information relating to the property, such as net operating income, estimated holding periods, occupancy statistics, vacancy projections and tenants’ sales levels.

If there is a triggering event in relation to a property to be held and used, we will estimate the aggregate future cash flows, net of estimated capital expenditures, to be generated by the property, undiscounted and without interest charges. In addition, this estimate may consider a probability weighted cash flow estimation approach when alternative courses of action to recover the carrying amount of a long-lived asset are under consideration or when a range of possible values is estimated.

The determination of undiscounted cash flows requires significant estimates by our management, including the expected course of action at the balance sheet date that would lead to such cash flows. Subsequent changes in estimated undiscounted cash flows arising from changes in the anticipated action to be taken with respect to the property could affect the determination of whether an impairment exists, and the effects of such changes could materially affect our net income. If the estimated undiscounted cash flows are less than the carrying value of the property, the carrying value is written down to its fair value. We intend to hold and operate our properties long-term, which reduces the likelihood that our carrying value is not recoverable. A shortened holding period would increase the likelihood that the carrying value is not recoverable.

Assessment of our ability to recover certain lease-related costs must be made when we have a reason to believe that a tenant might not be able to perform under the terms of the lease as originally expected. This requires us to make estimates as to the recoverability of such costs.

An other-than-temporary impairment of an investment in an unconsolidated joint venture is recognized when the carrying value of the investment is not considered recoverable based on evaluation of the severity and duration of the decline in value. To the extent impairment has occurred, the excess carrying value of the asset over its estimated fair value is recorded as a reduction to income.

Assets Classified as Held for Sale

The determination to classify an asset as held for sale requires significant estimates by us about the property and the expected market for the property, which are based on factors including recent sales of comparable properties, recent expressions of interest in the property, financial metrics of the property and the physical condition of the property. We must also determine if it will be possible under those market conditions to sell the property for an acceptable price within one year. When assets are identified by our management as held for sale, we discontinue depreciating the assets and estimate the sales price, net of selling costs, of such assets. We generally consider operating properties to be held for sale when they meet criteria such as whether the sale transaction has been approved by the appropriate level of management and there are no known material contingencies relating to the sale such that the sale is probable and is expected to qualify for recognition as a completed sale within one year. If the expected net sales price of the asset that has been identified as held for sale is less than the net book value of the asset, the asset is written down to fair value less the cost to sell. Assets and liabilities related to assets classified as held for sale are presented separately in the consolidated balance sheets. If we determine that a property no longer meets the held-for-sale criteria, we reclassify the property’s assets and liabilities to their original locations on the consolidated balance sheet and record depreciation and amortization expense for the period that the property was in held-for-sale status.

As of March 31, 2022, we determined that two of our hotel land parcels, three of our multifamily land parcels, one vacant anchor box space and one retail property met the criteria to be classified as held for sale. As of December 31, 2021, we determined that two of our hotel land parcels, two of our multifamily land parcels and a vacant anchor box space met the criteria to be classified as held for sale.

Share-Based Compensation

On March 4, 2022, the Company approved the 2022-2024 Equity Award Program design (the “Program”). Having approved the Program, the Company made long term incentive plan awards in the form of performance-based restricted share units (“PSUs”) and time-based restricted share units (“RSUs”) consisting of 4,838,184 RSUs and 3,548,708 PSUs. The grants of PSUs and RSUs were made pursuant to the Company’s Amended and Restated 2018 Equity Incentive Plan (as amended, the “2018 Equity Incentive Plan”). The settlement of RSUs or PSUs may be made in cash or shares as determined by the Executive Compensation and Human Resources Committee. As such, these awards are accounted for as liability awards and remeasured at fair value each reporting period. The liability for these awards is included in accrued expenses and other liabilities in the consolidated balance sheets and compensation cost is recorded ratably over the respective vesting periods.

Under the Program, the number of common shares to be issued by the Company with respect to the PSUs, if any, depends on the Company’s achievement of certain specified operating performance measures and a modification based on total shareholder return (“TSR”) for the three-year period beginning January 1, 2022 and ending on the earlier of December 31, 2024 or the date of a change in control of the Company (the “Measurement Period”).

The preliminary number of common shares to be issued by the Company with respect to the PSUs awarded is based on a multiple determined by achievement of certain specified operating performance measures during the Measurement Period. These performance measures, the three-year core mall sales per square foot, three-year average quarterly core mall total occupancy and the three-year corporate debt yield, are each weighted 33.3%. The Committee approved minimum, target and maximum performance levels for both measures. For all participants, the minimum performance level will have a 0.5 multiplier, the target performance level will have a 1.0 multiplier and the maximum performance level will have a 2.0 multiplier. The preliminary number of common shares to be issued by the Company as determined under the operating performance goals will be adjusted, upwards or downwards, depending on the Company’s TSR performance over the Measurement Period relative to the TSR performance of other real estate investment trusts comprising a leading index of retail real estate investment trusts. Dividends, if any, on the Company’s common shares are deemed to be paid with respect to PSUs and credited to the PSU accounts and applied to “acquire” more PSUs at the 20-day average closing price per common share ending on the dividend payment date.

With respect to the portion of the long-term incentive awards made in the form of RSUs, the RSUs generally will vest in three equal annual installments for all grants except director grants and two equal installments for the Company’s directors commencing on March 4, 2023, subject to continued employment. During the period that the RSUs have not vested, the holder will have no rights as a shareholder with respect to the RSUs; however, dividends, if any, on the Company’s common shares are deemed to be paid with respect to RSUs and credited to the RSU accounts and applied to “acquire” more RSUs at the 20-day average closing price per common share ending on the dividend payment date.

New Accounting Developments

In October 2021, the FASB issued ASU 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805), which provides amendments to address diversity and inconsistency related to the recognition and measurement of contract assets and liabilities acquired in a business combination. Amendments require that an acquirer recognize and measure contract assets/liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. While this standard is not in effect at this time, the Company will evaluate and implement if applicable.

XML

Real Estate Activities

3 Months Ended

Mar. 31, 2022

Real Estate [Abstract]

Real Estate Activities

2. REAL ESTATE ACTIVITIES

Investments in real estate as of March 31, 2022 and December 31, 2021 were comprised of the following:

(in thousands of dollars)	March 31, 2022			December 31, 2021
Buildings, improvements and construction in progress	$	2,740,712		$	2,762,675
Land, including land held for development		422,509			443,686
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

Capitalization of Costs

The following table summarizes our capitalized interest, compensation, including commissions, and real estate taxes for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
(in thousands of dollars)	2022		2021
Development/Redevelopment Activities:
Interest (1)	$	24	$	130
Compensation		46		37
Real estate taxes		—		29
Leasing Activities:
Compensation, including commissions (2)		29		—

(1) Includes interest capitalized on investments in partnerships under development.

(2) The definition of initial direct costs under ASC 842 includes only those incremental costs of a lease that would not have been incurred if the lease had not been obtained. Commissions paid for successful leasing transactions continue to be capitalized.

Impairment of Assets

Exton Square Mall

In conjunction with the preparation of our 2021 annual financial statements, we identified a triggering event at Exton Square Mall in Exton, Pennsylvania as a result of our determination to decrease the holding period of the property. This led us to conduct an analysis of possible impairment at the property and, during the year ended December 31, 2021, we recorded a loss on impairment of assets of approximately $8.4 million. In March 2022, we executed a purchase and sale agreement for Exton Square Mall for $27.5 million, which includes an initial amount of $8.0 million towards the residential land parcel that is under contract. As a result, Exton Square Mall met the criteria to be classified as held for sale as of March 31, 2022.

Disposition

Valley View Mall Derecognition

In August 2020, a court order assigned a receiver to operate Valley View Mall in La Crosse, Wisconsin on behalf of the lender of the mortgage loan secured by the property. Although we have not yet conveyed the property because foreclosure proceedings are ongoing, we no longer control or operate the property as a result of court order assigning the receiver. In September 2020, a court order was issued to conduct a foreclosure sale of the property and as a result we have no further operating liabilities from the property. As a result of our loss of control of the property, we derecognized the property and recorded an offsetting contract asset and recognized a gain on derecognition of property of $8.1 million in the consolidated statement of operations for the year ended December 31, 2020. The contract asset is included in deferred costs and other assets, net in the consolidated balance sheets as of March 31, 2022 and December 31, 2021. The mortgage principal balance was $27.2 million at March 31, 2022 and December 31, 2021, which we continue to recognize until the foreclosure process is completed. The derecognition of Valley View Mall and its related assets was a non-cash conversion of assets, which had no impact on the Company’s cash flows. In May 2022, the foreclosure proceedings were completed.

Other Property Disposition

In February 2022, we completed the redemption of preferred equity issued as part of a previous sale of our New Garden land parcel. In connection with this settlement, we received approximately $2.5 million, which funds were used to pay down our First Lien Revolving Facility and First Lien Term Loan. In connection with this transaction, we recorded a gain on sale of preferred equity of $3.7 million in the three months ended March, 31 2022.

XML

Investments in Partnerships

3 Months Ended

Mar. 31, 2022

Equity Method Investments And Joint Ventures [Abstract]

Investments in Partnerships

3. INVESTMENTS IN PARTNERSHIPS

The following table presents summarized financial information of the equity investments in our unconsolidated partnerships as of March 31, 2022 and December 31, 2021:

_____________________

(in thousands of dollars)	March 31, 2022			December 31, 2021
ASSETS:
Investments in real estate, at cost:
Operating properties	$	850,817		$	847,560
Construction in progress		3,534			6,456
Total investments in real estate		854,351			854,016
Accumulated depreciation		(252,849	)		(247,133	)
Net investments in real estate		601,502			606,883
Cash and cash equivalents		66,294			59,004
Deferred costs and other assets, net		155,722			155,247
Total assets		823,518			821,134
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		491,957			493,904
FDP Term Loan, net		194,602			194,602
Partnership Loan		118,560			115,543
Other liabilities		145,691			141,619
Total liabilities		950,810			945,668
Net investment		(127,292	)		(124,534	)
Partners’ share		(63,893	)		(62,771	)
PREIT’s share		(63,399	)		(61,763	)
Excess investment (1)		6,804			6,718
Net investments and advances	$	(56,595	)	$	(55,045	)
Investment in partnerships, at equity	$	12,749		$	16,525
Distributions in excess of partnership investments		(69,344	)		(71,570	)
Net investments and advances	$	(56,595	)	$	(55,045	)

(1)Excess investment represents the unamortized difference between our investment and our share of the equity in the underlying net investment in the unconsolidated partnerships. The excess investment is amortized over the life of the properties, and the amortization is included in “Equity in loss of partnerships.”

We record distributions from our equity investments using the nature of the distribution approach.

The following table summarizes our share of equity in (loss) income of partnerships for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
(in thousands of dollars)	2022			2021
Real estate revenue	$	29,889		$	24,900
Expenses:
Property operating and other expenses		(11,874	)		(13,739	)
Interest expense (1)		(11,754	)		(10,704	)
Depreciation and amortization		(6,655	)		(6,930	)
Total expenses		(30,283	)		(31,373	)
Net loss		(394	)		(6,473	)
Less: Partners’ share		(1	)		3,096
PREIT’s share		(395	)		(3,377	)
Amortization of excess investment		-			(56	)
Equity in loss of partnerships	$	(395	)	$	(3,433	)

(1) Net of capitalized interest expense of $0 and $103 for the three months ended March 31, 2022 and 2021, respectively.

Fashion District Philadelphia

FDP Loan Agreement

PM Gallery LP, a Delaware limited partnership and joint venture entity owned indirectly by us and The Macerich Company (“Macerich”), previously entered into a $250.0 million term loan in January 2018 (as amended in July 2019 to increase the total maximum potential borrowings to $350.0 million) to fund the ongoing redevelopment of Fashion District Philadelphia and to repay capital contributions to the venture previously made by the partners. A total of $51.0 million was drawn during the third quarter of 2019 and we received aggregate distributions of $25.0 million as our share of the draws. On December 10, 2020, PM Gallery LP, together with certain other subsidiaries owned indirectly by us and Macerich (including the fee and leasehold owners of the properties that are part of the Fashion District Philadelphia project), entered into an Amended and Restated Term Loan Agreement (the “FDP Loan Agreement”). In connection with the execution of the FDP Loan Agreement, a $100.0 million principal payment was made (and funded indirectly by Macerich, the “Partnership Loan”) to pay down the existing loan, reducing the outstanding principal under the FDP Loan Agreement from $301.0 million to $201.0 million. The joint venture must repay the Partnership Loan plus 15% accrued interest to Macerich, in its capacity as the lender, prior to the resumption of 50/50 cash distributions to the Company and its joint venture partner.

The FDP Loan Agreement provides for (i) a maturity date of January 22, 2023, with the potential for a one-year extension upon the borrowers’ satisfaction of certain conditions, (ii) an interest rate at the borrowers’ option with respect to each advance of either (A) the Base Rate (defined as the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50%, and (c) the LIBOR Market Index Rate plus 1.00%) plus 2.50% or (B) LIBOR for the applicable period plus 3.50%, (iii) a full recourse guarantee of 50% of the borrowers’ obligations by PREIT Associates, L.P., on a several basis, (iv) a full recourse guarantee of certain of the borrowers’ obligations by The Macerich Partnership, L.P., up to a maximum of $50.0 million, on a several basis, (v) a pledge of the equity interests of certain indirect subsidiaries of PREIT and Macerich, as well as of PREIT-RUBIN, Inc. and one of its subsidiaries, that have a direct or indirect ownership interest in the borrowers, (vi) a non-recourse carve-out guaranty and a hazardous materials indemnity by each of PREIT Associates, L.P. and The Macerich Partnership, L.P., and (vii) mortgages of the borrowers’ fee and leasehold interests in the properties that are part of the Fashion District Philadelphia project and certain other properties. The FDP Loan Agreement contains certain covenants typical for loans of its type. We anticipate that the joint venture will not meet certain financial covenants applicable under the FDP Loan Agreement during 2022. See Going Concern Considerations section in Note 1.

Joint Venture

In connection with the execution of the FDP Loan Agreement, the governing structure of PM Gallery LP was modified such that, effective as of January 1, 2021, Macerich is responsible for the entity’s operations and, subject to limited exceptions, controls major decisions. The Company considered the changes to the governing structure of PM Gallery LP and determined the investment qualifies as a variable interest entity and will continue to be accounted for under the equity method of accounting. Our maximum exposure to losses is limited to the extent of our investment, which is a 50% ownership.

Mortgage Loan Activity

Gloucester Premium Outlets

On March 1, 2022, the Company’s unconsolidated subsidiary exercised its one-year extension option of its mortgage loan securing its property at Gloucester Premium Outlets. The $86.0 million loan maturing on March 1, 2023 has a variable interest rate.

Pavilion at Market East

During the three months ended March 31, 2021, the Company’s unconsolidated subsidiary received an extension of its mortgage securing Pavilion at Market East for an additional three months to May 2021. On May 25, 2021, the Company’s unconsolidated subsidiary completed a refinance of its mortgage loan securing its property at Pavilion at Market East. The $7.6 million mortgage has a 2-year term, maturing in May 2023. The loan has interest only payments until May 2022 at a variable rate of the greater of (a) one month LIBOR plus 3.5% or (b) 4.0%.

XML

Financing Activity

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Financing Activity

4. FINANCING ACTIVITY

Credit Agreements

On December 10, 2020 we entered into two secured credit agreements (collectively, as amended, the “Credit Agreements”): (a) an Amended and Restated First Lien Credit Agreement (the “First Lien Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo Bank”) and the other financial institutions signatory thereto and their assignees, for secured loan facilities consisting of: (i) a secured first lien revolving credit facility allowing for borrowings up to $130.0 million, including a sub-facility for letters of credit to be issued thereunder in an aggregate stated amount of up to $10.0 million (collectively, the “First Lien Revolving Facility”), and (ii) a $384.5 million secured first lien term loan facility (the “First Lien Term Loan Facility”), and (b) a Second Lien Credit Agreement (the “Second Lien Credit Agreement”), as amended February 8, 2021 with Wells Fargo Bank and the other financial institutions signatory thereto and their assignees for a $535.2 million secured second lien term loan facility (the “Second Lien Term Loan Facility”). The Credit Agreements mature in December 2022. The First Lien Term Loan Facility and the Second Lien Term Loan Facility are collectively referred to as the “Term Loans.” The Credit Agreements refinanced our previously existing secured term loan under the Credit Agreement dated as of August 11, 2020 (as amended, the “Bridge Credit Agreement”), our Seven-Year Term Loan Agreement entered into on January 8, 2014 (as amended, the “7-Year Term Loan”), and our 2018 Amended and Restated Credit Agreement entered into on May 24, 2018 (as amended, the “2018 Credit Agreement” and collectively with the Bridge Credit Agreement and the 7-Year Term Loan, the “Restructured Credit Agreements”). Upon our entry into the Credit Agreements, the Bridge Credit Agreement, the 7-Year Term Loan and the 2018 Credit Agreement were cancelled.

As of March 31, 2022, we had borrowed $976.5 million under the Term Loans and $53.8 million under the First Lien Revolving Facility. The carrying value of the Term Loans on our consolidated balance sheet as of March 31, 2022 is net of $4.8 million of unamortized debt issuance costs. The maximum amount that was available to us under the First Lien Revolving Facility as of March 31, 2022 was $76.2 million.

On April 13, 2021, we entered into Agency Resignation, Appointment, Acceptance and Waiver Agreements pursuant to which Wells Fargo Bank resigned as Administrative Agent and Wilmington Savings Fund Society, FSB was appointed successor Administrative Agent under the First Lien Credit Agreement, the Second Lien Credit Agreement and, in each case, the related loan documents. There is currently no successor letter of credit issuer under the First Lien Revolving Facility, accordingly, the Company cannot currently access the letters of credit sub-facility.

Interest expense and deferred financing fee amortization related to the Credit Agreements and the Restructured Credit Agreements for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended March 31,
(in thousands of dollars)	2022		2021
Revolving Facilities:
Interest expense (1)	$	541	$	548
Deferred financing amortization		299		299
Term Loans:
Interest expense (2)		20,448		20,421
Deferred financing amortization		1,784		1,780

(1)All of the expense applied to the First Lien Revolving Facility.

(2)All of the expense applied to the Term Loans, of which $12.5 million and $11.5 million, for March 31, 2022 and March 31, 2021, respectively, was for the Second Lien term Loan Facility and was not paid in cash, but capitalized to the principal balance of the loan.

Our obligations under the Credit Agreements are guaranteed by certain of our subsidiaries. Our obligations under the Credit Agreements and the guaranties are secured by mortgages and deeds of trust on a portfolio of 12 of our subsidiaries’ properties, including nine malls and three additional parcels. The obligations are further secured by a lien on substantially all of our personal property pursuant to collateral agreements and a pledge of substantially all of the equity interests held by us and the guarantors, pursuant to pledge agreements, in each case subject to limited exceptions.

The Credit Agreements each provide for a two-year maturity of December 2022 (the “Maturity Date”), subject to a one-year extension to December 2023 at the borrowers’ option, subject to (i) minimum liquidity of $35.0 million, (ii) a minimum corporate debt yield of 8.0%, (iii) a maximum loan-to-value ratio of 105% for the total first lien and second lien loans and letters of credit and the Borrowing Base Properties as determined by an appraisal and (iv) no default or event of default existing and our representations and warranties being true in all material respects. The loans under the Credit Agreements are repayable in full on the Maturity Date, subject to mandatory prepayment provisions in the event of certain events including asset sales, incurrence of indebtedness, issuances of equity and receipt of casualty insurance proceeds. The terms of our Credit Agreements place restrictions on, among other things, and subject to certain exceptions, our ability to make certain restricted payments (including payments of dividends), make certain types of investments and acquisitions, issue redeemable securities, incur

additional indebtedness, incur liens on our assets, enter into agreements with a negative pledge, make certain intercompany transfers, merge, consolidate, or sell our assets or the equity interests in our subsidiaries, amend our organizational documents or material contracts, enter into certain transactions with affiliates, or enter into derivatives contracts. Additionally, if we receive net cash proceeds from certain capital events (including equity issuances), we are required to prepay loans under our Credit Agreements. In addition, the Credit Agreements contain cross-default provisions that trigger an event of default if we fail to make certain payments or otherwise fail to comply with our obligations with respect to certain of our other indebtedness.

First Lien Credit Agreement

Amounts borrowed under the First Lien Credit Agreement may be either Base Rate Loans or LIBOR Loans. Base Rate Loans bear interest at the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) the LIBOR Market Index Rate plus 1.0%, provided that the Base Rate will not be less than 1.50% per annum, in each case plus (w) for revolving loans, 2.50% per annum, and (x) for term loans, 4.74% per annum. LIBOR Loans bear interest at LIBOR plus (y) for revolving loans, 3.50% per annum, and (z) for term loans, 5.74% per annum, in each case, provided that LIBOR will not be less than 0.50% per annum. Interest is due to be paid in cash on the last day of each applicable interest period (with rolling 30-day interest periods) and on the Maturity Date. We are required to pay certain fees to the administrative agent for the account of the lenders in connection with the First Lien Credit Agreement, including an unused fee for the account of the revolving lenders, which will accrue (i) 0.35% per annum on the daily amount of the unused revolving commitments when that amount is greater than or equal to 50% of the aggregate amount of revolving commitments, and (ii) 0.25% when that amount is less than 50% of the aggregate amount of revolving commitments. Accrued and unpaid unused fees will be payable quarterly in arrears during the term of the First Lien Credit Agreement and on the Revolving Termination Date (or any earlier date of termination of the revolving commitments or reduction of the revolving commitments to zero).

Letters of credit and the proceeds of revolving loans may be used (i) to refinance indebtedness under the Bridge Credit Agreement (which agreement was canceled and refinanced upon our entry into the Credit Agreements), (ii) for working capital and general corporate purposes (subject to certain exceptions set forth in the First Lien Credit Agreement, including limitations on investments in non-Borrowing Base Properties), and (iii) to fund professional fee payments and other fees and expenses subject to the provisions of the Plan and related confirmation order and for other uses permitted by the provisions of the First Lien Credit Agreement, Plan and confirmation order, in each case consistent with an approved annual business plan. We may terminate or reduce the amount of the revolving commitments at any time and from time to time without penalty or premium, subject to the terms of the First Lien Credit Agreement.

The First Lien Credit Agreement contains, among other restrictions, certain additional affirmative and negative covenants and other terms, many of which substantially align with those in the Second Lien Credit Agreement and are summarized below under “Similar Terms of the Credit Agreements.”

Second Lien Credit Agreement

Amounts borrowed under the Second Lien Credit Agreement may be either Base Rate Loans or LIBOR Loans. Base Rate Loans bear interest at the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) the LIBOR Market Index Rate plus 1.0%, provided that the Base Rate will not be less than 1.50% per annum, in each case plus 7.00% per annum. LIBOR Loans bear interest at LIBOR plus 8.00% per annum, provided that LIBOR will not be less than 0.50% per annum. Interest is due to be paid in kind on the last day of each applicable interest period (with rolling 30-day interest periods) by adding the accrued and unpaid amount thereof to the principal balance of the loans under the Second Lien Credit Agreement and then accruing interest on the increased principal amount (provided that after the discharge of our Senior Debt Obligations, interest will be paid in cash). We are required to pay certain fees to the administrative agent for the account of the lenders in connection with the Second Lien Credit Agreement.

The proceeds of loans under the Second Lien Credit Agreement may only be used to refinance existing indebtedness under the 2018 Credit Agreement and the 7-Year Term Loan.

The Second Lien Credit Agreement contains, among other restrictions, certain additional affirmative and negative covenants and other terms, many of which substantially align with those in the First Lien Credit Agreement and are summarized below under “Similar Terms of the Credit Agreements.”

On February 8, 2021, the Company entered into the first amendment to the Second Lien Credit Agreement (“First Amendment”). The First Amendment provided for elimination of approximately $5.3 million of the disputed default interest that was capitalized into the principal balance of the Second Lien Term Loan Facility on the effective date thereof, reducing the outstanding principal amount of loans outstanding under the Second Lien Credit Agreement, retroactively, as of December 10, 2020, to $535.2 million. The First Amendment also eliminated the disputed PIK interest that was capitalized through the date of the amendment.

Similar Terms of the Credit Agreements

Each of the Credit Agreements contains certain affirmative and negative covenants and other provisions, as described in detail below, which substantially align with those contained in the other Credit Agreements.

Covenants

Each of the Credit Agreements contains, among other restrictions, certain affirmative and negative covenants, including, without limitation, requirements that we:

•maintain liquidity of at least $25.0 million, to be comprised of unrestricted cash held in certain deposit accounts subject to control agreements, up to $5.0 million held in a certain other deposit account excluded from the collateral, the unused revolving loan commitments under the First Lien Credit Agreement (to the extent available to be drawn), and amounts on deposit in a designated collateral proceeds account and amounts on deposit in a cash collateral account;

•maintain a minimum senior debt yield of 11.35% from and after June 30, 2021;

•maintain a minimum corporate debt yield of (a) 6.50% from June 30, 2021 through and including September 30, 2021 and (b) 7.25% from and after October 1, 2021;

•provide to the administrative agent, among other things, PREIT and its subsidiaries’ quarterly and annual financial statements, annual budget, reports on projected sources and uses of cash, and an updated annual business plan, as well as quarterly and annual operating statements, rent rolls, and certain other collections and tenant reports and information as the administrative agent may reasonably request with respect to each Borrowing Base Property;

•maintain PREIT’s status as a REIT;

•use commercially reasonable efforts to obtain subordination, non-disturbance and attornment agreements from each tenant under certain Major Leases as well as ground lease estoppel certificates from each ground lessor of a Borrowing Base Property;

•comply with the requirements of the various security documents and, at the administrative agent’s request, promptly notify the administrative agent of any acquisition of any owned real property that is not subject to a mortgage and grant liens on such real property to secure our obligations under the applicable Credit Agreement;

•not amend any existing sale agreements with respect to Borrowing Base Properties to result in a reduction of cash consideration by 20% or more; and

•not retain more than $6.5 million of cash in property-level accounts held by our subsidiaries that are owners of real property (subject to certain exceptions).

Each of the Credit Agreements also limits our ability, subject to certain exceptions, to make certain restricted payments (including payments of dividends and voluntary prepayments of certain indebtedness which includes, with respect to the First Lien Credit Agreement, voluntary prepayments under the Second Lien Credit Agreement), make certain types of investments and acquisitions, issue redeemable securities, incur additional indebtedness, incur liens on our assets, enter into agreements with a negative pledge, make certain intercompany transfers, merge, consolidate or sell all or substantially all of our assets or the equity interests in our subsidiaries, amend our organizational documents or material contracts, enter into transactions with affiliates, or enter into derivatives contracts. We are also prohibited from selling certain properties unless certain conditions are satisfied with respect to the terms of the sale agreement for such property or, in the case of Borrowing Base Properties, payment of certain release prices.

The First Lien Credit Agreement and, after our Senior Debt Obligations are discharged, the Second Lien Credit Agreement, each prohibit us from (i) entering into Major Leases, (ii) assigning leases, (iii) discounting any rent under leases where the leased premises is at least 7,500 square feet at a Borrowing Base Property and the discounted amount is more than $750,000 and more than 25% of the aggregate contractual base rent payable over the initial term (not including any extension options), (iv) collecting rent in advance, (v) terminating or modifying the terms of any Major Lease or releasing or discharging tenants from any obligations thereunder, (vi) consenting to a tenant’s assignment or subletting of a Major Lease, or (vii) subordinating any lease to any other deed of trust, mortgage, deed to secure debt or encumbrance, other than the mortgages already encumbering the applicable Borrowing Base Property and the mortgages entered into in connection with the other Credit Agreement. Under the First Lien Credit Agreement, and under the Second Lien Credit Agreement after the First Lien Termination Date, any amounts equal to or greater than $2.5 million but less than $3.5 million received by or on behalf of a guarantor in consideration of any termination or modification of a lease (or the release or discharge of a tenant) are subject to restrictions on use, and such amounts that are equal to or greater than $3.5 million must be applied to reduce our outstanding obligations under the applicable Credit Agreement.

As of March 31, 2022, we were in compliance with all financial covenants under the Credit Agreements.

Restructured Credit Agreements

Prior to completion of the Financial Restructuring, we had entered into three credit agreements: (1) the 2018 Credit Agreement, which included (a) the $375.0 million 2018 Revolving Facility (“Restructured Revolver”), and (b) the $300.0 million 2018 Term Loan Facility, (2) the $250.0 million 2014 7-Year Term Loan, and (3) the Bridge Credit Agreement. Throughout 2020, we entered into various amendments to the Restructured Credit Agreements. On August 11, 2020, we entered into the Bridge Credit Agreement which provided for up to $30.0 million of additional borrowings and an original maturity date of September 30, 2020. On September 30, 2020, we amended our Restructured Credit Agreements to, among other things, extend the maturity date of the Bridge Credit Agreement until October 31, 2020 and to provide for the ability to request additional commitments of up to $25.0 million under our Bridge Credit Agreement. The September 2020 amendments also eliminated the minimum liquidity requirement under each of the Restructured Credit Agreements. We also amended the Bridge Credit Agreement on October 16, 2020 to, among other things, increase the aggregate amount of commitments under the Bridge Credit Agreement by

$25.0 million. As of November 1, 2020, we had borrowed $590.0 million available under the Restructured Credit Agreements, including $55.0 million under our Bridge Credit Agreement and the full $375.0 million under the 2018 Revolving Facility. The Restructured Credit Agreements contained certain affirmative and negative covenants, several of which were amended on March 30, 2020. Pursuant to amendments dated July 27, 2020, some of those covenants were suspended for the duration of the suspension period, as extended by the September 30, 2020 amendments. As such, the Restructured Credit Agreements, as amended, restricted our ability to declare and pay dividends on our common shares and preferred shares for the duration of the Suspension Period. The filing of the chapter 11 cases constituted an event of default under the Restructured Credit Agreements. Upon our entry into the Credit Agreements, the Bridge Credit Agreement, the 7-Year Term Loan and the 2018 Credit Agreement were cancelled.

Consolidated Mortgage Loans

The estimated fair values of our consolidated mortgage loans based on year-end interest rates and market conditions at March 31, 2022 and December 31, 2021 were as follows:

	March 31, 2022				December 31, 2021
(in millions of dollars)	Carrying Value		Fair Value		Carrying Value		Fair Value
Mortgage loans(1)	$	846.5	$	832.7	$	852.5	$	846.6

(1) The carrying value of mortgage loans includes unamortized debt issuance costs of $1.5 million and $1.2 million as of March 31, 2022 and December 31, 2021, respectively.

The consolidated mortgage loans contain various customary default provisions. As of March 31, 2022, we were not in default on any of the consolidated mortgage loans, except for our mortgage secured by Valley View Mall.

Mortgage Loan Activity

Woodland Amendment

On December 10, 2021, certain of our consolidated subsidiaries entered into an amendment to our mortgage loan secured by the property at Woodland Mall in Grand Rapids, Michigan, which provides for an extension of the maturity date until December 10, 2022. The Company capitalized $0.3 million of lender fees as additional debt issuance costs in connection with the amendment.

Forbearance Agreements

During 2020, we executed forbearance and loan modification agreements for Cherry Hill Mall, Cumberland Mall, Dartmouth Mall, Francis Scott Key Mall, Viewmont Mall, and Woodland Mall. These arrangements allowed us to defer principal payments, and in some cases interest as well, between May and August 2020 depending on the terms of each agreement. At the end of the deferral period, repayment of deferred amounts spanned from four to six months. The repayment periods ranged from August 2020 through February 2021 pursuant to the terms of the specific agreements. Certain of these forbearance and loan modification agreements also imposed certain additional informational reporting requirements during the applicable modification periods. As of March 31, 2022, we had repaid all principal and interest deferrals.

XML

Cash Flow Information

3 Months Ended

Mar. 31, 2022

Supplemental Cash Flow Elements [Abstract]

Cash Flow Information

5. CASH FLOW INFORMATION

We consider all highly liquid short-term investments with a maturity of three months or less at purchase or acquisition to be cash equivalents.

At March 31, 2022 and 2021, cash and cash equivalents and restricted cash totaled $61.1 million and $53.9 million, respectively, and

included tenant security deposits of $1.7 million and $1.4 million, respectively.

Cash paid for interest was $16.5 million and $16.3 million for the three months ended March 31, 2022 and 2021, respectively, net of amounts capitalized of $24 thousand and $0.1 million, respectively.

In our statement of cash flows, we report cash flows on our revolving facilities on a net basis. Aggregate repayments on our First Lien Revolving Facility and Term Loan were $0.7 million and $1.7 million, respectively, for the three months ended March 31, 2022. We had no borrowings or repayments on our First Lien Revolving Facility for the three months ended March 31, 2021.

Accrued construction costs decreased by $3.8 million and increased by $0.3 million for the three months ended March 31, 2022 and 2021, respectively, representing non-cash changes in investment in real estate and construction in progress.

The following table provides a summary of cash, cash equivalents, and restricted cash reported within the statement of cash flows as of March 31, 2022 and 2021.

	March 31,
(in thousands of dollars)	2022		2021
Cash and cash equivalents	$	45,554	$	44,637
Restricted cash included in other assets		15,547		9,279
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	61,101	$	53,916

Our restricted cash consists of cash held in escrow by banks for real estate taxes and other purposes.

XML

Derivatives

3 Months Ended

Mar. 31, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives

6. DERIVATIVES

In the normal course of business, we are exposed to financial market risks, including interest rate risk on our interest bearing liabilities. We attempt to limit these risks by following established risk management policies, procedures and strategies, including the use of financial instruments such as derivatives. We do not use financial instruments for trading or speculative purposes.

Cash Flow Hedges of Interest Rate Risk

For derivatives that have been designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in “Accumulated other comprehensive (loss) income” and subsequently reclassified into “Interest expense, net” in the same periods during which the hedged transaction affects earnings. Through December 10, 2020, all of our derivatives were designated and qualified as cash flow hedges of interest rate risk.

On December 10, 2020 as a result of the Financial Restructuring, we de-designated seven of our interest rate swaps which were previously designated cash flow hedges against the 2018 Credit Facility and 7-year Term Loan, as the occurrence of the hedged forecasted transactions was no longer probable during the hedged time period due to the Financial Restructuring as described in Note 1. As such, the Company accelerated the reclassification of a portion of the amounts in other comprehensive (loss) income to earnings which resulted in a loss of $2.8 million that was recorded within interest expense, net in the consolidated statement of operations. Additionally, on December 10, 2020, the Company voluntarily de-designated the remaining thirteen interest swaps that were also previously designated as cash flow hedges against the 2018 Credit Facility and 7-year Term Loan. Upon de-designation, the accumulated other comprehensive (loss) income balance of each of these de-designated derivatives will be separately reclassified to earnings as the originally hedged forecasted transactions affect earnings. Through December 10, 2020, the changes in fair value of the derivatives were recorded to accumulated other comprehensive (loss) income in the consolidated balance sheets.

On December 22, 2020, we re-designated nine interest rate swaps with a notional amount of $375.0 million as cash flow hedges of interest rate risk against the First Lien Term Loan Facility. These interest rate swaps qualified for hedge accounting treatment with changes in the fair value of the derivatives recorded through accumulated other comprehensive (loss) income.

As of March 31, 2022, we had seven total derivatives which were designated as cash flow hedges.

We recognize all derivatives at fair value as either assets or liabilities in the accompanying consolidated balance sheets. Our derivative assets are recorded in “Deferred costs and other assets” and our derivative liabilities are recorded in “Fair value of derivative instruments.”

Over the next twelve months we estimate that $2.7 million will be reclassified as an increase to interest expense. The recognition of these amounts could be accelerated in the event that we repay amounts outstanding on the debt instruments and do not replace them with new borrowings.

Non-designated Hedges

Derivatives not designated as hedges are not speculative; they are also used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements. For swaps that were not re-designated subsequent to December 10, 2020, changes in the fair value of derivatives were recorded directly in earnings as interest expense in the consolidated statement of operations. During the three months ended March 31, 2021, we had four non-designated swaps mature. As of March 31, 2022, we had no derivatives which were not designated in hedging relationships.

Interest Rate Swaps

As of March 31, 2022, we had interest rate swap agreements designated in qualifying hedging relationships outstanding with a weighted average base interest rate of 2.70% on a notional amount of $300.0 million, maturing in May 2023. We originally entered into these interest rate swap agreements in order to hedge the interest payments associated with our issuances of variable interest rate long term debt. The interest rate swap agreements are net settled monthly.

The following table summarizes the terms and estimated fair values of our interest rate swap derivative instruments as of March 31, 2022 and December 31, 2021 based on the year they mature. The notional values provide an indication of the extent of our involvement in these instruments, but do not represent exposure to credit, interest rate or market risks.

Maturity Date	Aggregate Notional Value at March 31, 2022 (in millions of dollars)		Aggregate Fair Value at March 31, 2022 (1)  (in millions of dollars)			Aggregate Fair Value at December 31, 2021 (1)  (in millions of dollars)			Weighted Average Interest Rate
Derivatives in Cash Flow Hedging Relationships
Interest Rate Swaps
2023	$	300.0	$	(2.6	)	$	(8.1	)		2.70	%

(1)As of March 31, 2022 and December 31, 2021, derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy and we did not have any significant recurring fair value measurements related to derivative instruments using significant unobservable inputs (Level 3).

The tables below present the effect of derivative financial instruments on accumulated other comprehensive (loss) income and on our consolidated statements of operations for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Instruments				Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Interest Expense
(in millions of dollars)	2022		2021		2022		2021
Derivatives in Cash Flow Hedging Relationships
Interest rate products	$	3.9	$	0.2	$	1.9	$	2.4

	Three Months Ended March 31,
(in millions of dollars)	2022			2021
Total interest expense presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded	$	(31.4	)	$	(30.7	)
Amount of (loss) gain reclassified from accumulated other comprehensive income into interest expense	$	1.9		$	2.4

Credit-Risk-Related Contingent Features

We have agreements with some of our derivative counterparties that contain a provision pursuant to which, if our entity that originated such derivative instruments defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared to be in default on our derivative obligations. As of March 31, 2022, we were not in default on any of our derivative obligations.

We have an agreement with a derivative counterparty that incorporates the loan covenant provisions of our loan agreement with a lender affiliated with the derivative counterparty. Failure to comply with the loan covenant provisions would result in our being in default on any derivative instrument obligations covered by the agreement.

As of March 31, 2022, the fair value of derivatives in a liability position, which excludes accrued interest but includes any adjustment for nonperformance risk related to these agreements, was $2.6 million. If we had breached any of the default provisions in these agreements as of March 31, 2022, we might have been required to settle our obligations under the agreements at their termination value (including accrued interest) of $3.3 million. We had not breached any of these provisions as of March 31, 2022.

XML

Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

7. LEASES

As Lessee

We have entered into ground leases for portions of the land at Springfield Town Center and Plymouth Meeting Mall. We have also entered into an office lease for our headquarters location, as well as vehicle, solar panel and equipment leases as a lessee. The initial terms of these agreements generally range from three to 40 years, with certain agreements containing extension options for up to an additional 60 years. Upon lease execution, the Company measures a liability for the present value of future lease payments over the noncancelable period of the lease and any renewal option period we are reasonably certain of exercising. Certain agreements require that we pay a portion of reimbursable expenses such as CAM, utilities, insurance and real estate taxes. These payments are not included in the calculation of the lease liability and are presented as variable lease costs.

Our leases do not provide a readily determinable implicit interest rate; therefore, we estimate our incremental borrowing rate to calculate the present value of remaining lease payments. In determining our incremental borrowing rate, we considered the lease term, market interest rates and estimates regarding our implied credit rating using market data with adjustments to determine an appropriate incremental borrowing rate.

The following table presents additional information pertaining to the Company’s leases:

	Three Months Ended March 31,
	2022								2021
(in thousands of dollars)	Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total		Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	202	$	—	$	—	$	202	$	202	$	—	$	—	$	202
Interest on lease liabilities		78		—		—		78		63		—		—		63
Operating lease costs		—		585		68		653		—		436		311		747
Variable lease costs		—		46		206		252		—		45		63		108
Total lease costs	$	280	$	631	$	274	$	1,185	$	265	$	481	$	374	$	1,120

Other information related to leases as of and for the three months ended March 31, 2022 and 2021 are as follows:

(in thousands of dollars)	2022			2021
Cash paid for the amounts included in the measurement of lease liabilities
Operating cash flows used for finance leases	$	63		$	63
Operating cash flows used for operating leases	$	653		$	552
Financing cash flows used for finance leases	$	185		$	184
Weighted average remaining lease term-finance leases (months)		72			83
Weighted average remaining lease term-operating leases (months)		292			296
Weighted average discount rate-finance leases		4.34	%		4.35	%
Weighted average discount rate-operating leases		6.44	%		6.44	%

Future payments against lease liabilities, which are recorded in Accrued expenses and other liabilities, as of March 31, 2022 are as follows:

(in thousands of dollars)	Finance leases			Operating leases			Total
April 1 to December 31, 2022	$	740		$	1,951		$	2,691
2023		983			2,556			3,539
2024		949			2,471			3,420
2025		929			2,427			3,356
2026		925			2,429			3,354
Thereafter		1,148			48,658			49,806
Total undiscounted lease payments		5,674			60,492			66,166
Less imputed interest		(686	)		(31,147	)		(31,833	)
Total lease liabilities	$	4,988		$	29,345		$	34,333

As Lessor

As of March 31, 2022, the fixed contractual lease payments, including minimum rents and fixed CAM amounts, to be received over the next five years pursuant to the terms of noncancelable operating leases with initial terms greater than one year are included in the table below. The amounts presented assume that no leases are renewed and no renewal options are exercised. Additionally, the table does not include variable lease payments that may be received under certain leases for percentage rents or the reimbursement of operating costs, such as common area expenses, utilities, insurance and real estate taxes. These variable lease payments are recognized in the period when the applicable expenditures are incurred or, in the case of percentage rents, when the sales data is made available.

(in thousands of dollars)
April 1 to December 31, 2022	$	138,433
2023		167,308
2024		144,553
2025		115,992
2026		96,854
Thereafter		248,425
	$	911,565

XML

Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

8. COMMITMENTS AND CONTINGENCIES

Contractual Obligations

As of March 31, 2022, we had unaccrued contractual and other commitments related to our capital improvement projects and development projects of $4.1 million, including $0.6 million of commitments related to the redevelopment of Fashion District Philadelphia, in the form of tenant allowances and contracts with general service providers and other professional service providers. For purposes of this disclosure, the contractual obligations and other commitments related to Fashion District Philadelphia are included at 100% of the obligation and not at our 50% ownership share.

Preferred Dividend Arrearages

We have aggregate authorized preferred shares of 25.0 million, where each series of authorized preferred shares is equal to the number of preferred shares outstanding of that series. Dividends on the Series B, Series C and Series D preferred shares are cumulative and therefore will continue to accrue at an annual rate of $1.8436 per share, $1.80 per share and $1.7188 per share, respectively. As of March 31, 2022, the cumulative amount of unpaid dividends on our issued and outstanding preferred shares totaled $47.9 million. This consisted of unpaid dividends per share on the Series B, Series C and Series D preferred shares of $3.23 per share, $3.15 per share and $3.01 per share, respectively.

NYSE Continued Listing Standards

On September 25, 2020, the Company received notice from the NYSE that the Company was not in compliance with the NYSE continued

listing standard set forth in Section 802.01C of the NYSE’s Listed Company Manual (the “Continued Listing Standards”), which requires listed

companies to maintain an average closing price of at least $1.00 per share over a consecutive 30-day trading period.

On January 4, 2021, the Company received notice from the NYSE that it regained compliance with the Continued Listing Standards. The

Company regained compliance after the closing price for its common shares on December 31, 2020 and the average closing price for its

common shares during the 30 trading-day period ended December 31, 2020 both exceeded $1.00.

On February 4, 2022, the Company received another notice from the NYSE that the Company was not in compliance with the NYSE continued

listing standard set forth in Section 802.01C of the NYSE’s Listed Company Manual (the “Continued Listing Standards”), which requires listed

companies to maintain an average closing price of at least $1.00 per share over a consecutive 30-day trading period.

XML

Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Nature of Operations

Nature of Operations

Pennsylvania Real Estate Investment Trust (“PREIT” or the “Company”) prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. Our unaudited consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in PREIT’s Annual Report on Form 10-K for the year ended December 31, 2021. In our opinion, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, the consolidated results of our operations, consolidated statements of comprehensive loss, consolidated statements of equity and our consolidated statements of cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year.

PREIT, a Pennsylvania business trust founded in 1960 and one of the first equity real estate investment trusts (“REITs”) in the United States, has a primary investment focus on retail shopping malls located in the eastern half of the United States, primarily in the Mid-Atlantic region. As of March 31, 2022, our portfolio consists of a total of 25 properties operating in nine states, including 20 shopping malls, four other retail properties and one development property. The property in our portfolio that is classified as under development does not currently have any activity occurring.

We hold our interest in our portfolio of properties through our operating partnership, PREIT Associates, L.P. (“PREIT Associates” or the “Operating Partnership”). We are the sole general partner of the Operating Partnership and, as of March 31, 2022, we held a 98.7% controlling interest in the Operating Partnership and consolidated it for reporting purposes. The presentation of consolidated financial statements does not itself imply that the assets of any consolidated entity (including any special-purpose entity formed for a particular project) are available to pay the liabilities of any other consolidated entity, or that the liabilities of any consolidated entity (including any special-purpose entity formed for a particular project) are obligations of any other consolidated entity.

Pursuant to the terms of the partnership agreement of the Operating Partnership, each of the limited partners has the right to redeem such partner’s units of limited partnership interest in the Operating Partnership (“OP Units”) for cash or, at our election, we may acquire such OP Units in exchange for our common shares on a one-for-one basis, in some cases beginning one year following the respective issue date of the OP Units and in other cases immediately. If all of the outstanding OP Units held by limited partners had been redeemed for cash as of March 31, 2022, the total amount that would have been distributed would have been $0.6 million based on the number of outstanding OP Units held by limited partners of 1,030,510 as of March 31, 2022. The current terms of our credit agreements prohibit the Company from acquiring whole share OP Units for cash and, as such, any whole share OP Units presented for redemption will be redeemed for shares. Partial share OP Unit redemptions will be redeemed for cash.

We provide management, leasing and real estate development services through two of our subsidiaries: PREIT Services, LLC (“PREIT Services”), which generally develops and manages properties that we consolidate for financial reporting purposes, and PREIT-RUBIN, Inc. (“PRI”), which generally develops and manages properties that we do not consolidate for financial reporting purposes, including properties owned by partnerships in which we own an interest, and properties that are owned by third parties in which we do not have an interest. PREIT Services and PRI are consolidated. PRI is a taxable REIT subsidiary, as defined by federal tax laws, which means that it is able to offer an expanded menu of services to tenants without jeopardizing our continuing qualification as a REIT under federal tax law.

We evaluate operating results and allocate resources on a property-by-property basis, and do not distinguish or evaluate our consolidated operations on a geographic basis. Due to the nature of our operating properties, which involve retail shopping, dining, entertainment and certain non-traditional tenant operations, we have concluded that our individual properties have similar economic characteristics and meet all other aggregation criteria. Accordingly, we have aggregated our individual properties into one reportable segment. In addition, no single tenant accounts for 10% or more of consolidated revenue, and none of our properties are located outside the United States.

COVID-19 Related Risks and Uncertainties

COVID-19 Related Risks and Uncertainties

The COVID-19 global pandemic that began in 2020 has adversely impacted and continues to impact our business, financial condition, liquidity and operating results, as well as our tenants’ businesses. The prolonged evolution of the pandemic has also led to periods of unprecedented global economic disruption and volatility in financial markets. Some of our tenants’ financial health and business viability have been adversely impacted and their creditworthiness has deteriorated. We anticipate that our future business, financial condition, liquidity and results of operations, including in 2022 and potentially in future periods, will continue to be materially impacted by the COVID-19 pandemic. Although

we have operated in the COVID-19 environment for approximately two years, uncertainty remains as to how long the global pandemic, economic challenges and various limitations and disruptions to business operations will continue to impact us or our tenants.

COVID-19 closures of our properties began on March 12, 2020 and continued through the reopening of our last property on July 3, 2020; all of our properties have remained open since that time and are employing safety and sanitation measures designed to address the risks posed by COVID-19. Despite the increased vaccination rates in the country, some of our tenants are still operating at reduced capacity. The significance of the prolonged pandemic on our business, however, will continue to depend on, among other things, the resurgences of outbreaks, the severity of the disease and the number of people infected with the virus, and certain variants thereof, vaccination rates in regions in which our properties are located, further effects on the economy of the pandemic and of the measures taken by governmental authorities and other third parties restricting daily activities and the length of time that such measures remain in place or are renewed, implementation of governmental programs to assist businesses and consumers impacted by the COVID-19 pandemic, and the effect of any changes to current restrictions or recommended protocols, all of which could vary by geographic region in which our properties are located. We continue to experience uncertainty as to whether government authorities will maintain the relaxation of current restrictions on businesses in the regions in which our properties are located, and whether government authorities will issue recommendations or impose requirements on landlords like us to further enhance health and safety protocols, or whether we will voluntarily adopt any of these requirements ourselves, which could result in increased operating costs and demands on our property management teams to ensure compliance with any of these requirements.

Going Concern Considerations

Going Concern Considerations

Under the accounting guidance related to the presentation of financial statements, when preparing financial statements for each annual and interim reporting period, management has the responsibility to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. As a result of the considerations articulated below, we believe there is substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued.

In applying the accounting guidance, management considered our current financial condition and liquidity sources, including current funds available, forecasted future cash flows and our conditional and unconditional obligations due over the next twelve months. Management specifically considered Fashion District Philadelphia’s Amended and Restated Term Loan Agreement (“FDP Loan Agreement”), which matures in January 2023 and includes a quarterly covenant provision as an event or condition that raises substantial doubt about our ability to continue as a going concern.

The FDP Loan Agreement has a balance of $194.6 million at March 31, 2022, and matures in January 2023, with an option to extend maturity to January 2024. This agreement also contains a 10% quarterly debt yield covenant which began on December 31, 2021. As of December 31, 2021, the FDP joint venture entity borrower, PM Gallery L.P., did not meet the minimum 10% debt yield covenant, which triggered the lender to sweep cash from the property. This is not an event of default. As of June 30, 2022, the debt yield covenant threshold will be 9%, subsequent to which the joint venture would be required to pay down the term loan to achieve a 9% debt yield. Based on the joint venture’s current forecast, management projects that the joint venture will not be able to meet this covenant as the debt yield is projected to be under 9%. To the extent the term loan is not paid down by the joint venture, this term loan could become due and payable during the second half of 2022. The Company guarantees 50% of the joint venture’s obligations under the FDP Loan Agreement and management projects that the Company would not be able to satisfy its obligations if the FDP term loan would become due and payable in 2022. The Company plans to work with its joint venture partner to satisfy any obligations coming due under the FDP Loan Agreement should it become due and payable as a result of the joint venture not meeting the debt yield covenant.

However, our ability to satisfy obligations under the FDP Loan Agreement depends primarily on management’s ability to obtain relief from the joint venture’s lender in regard to the Company’s guarantee of 50% of the outstanding debt balance. Obtaining relief from the FDP Loan Agreement lender involves performance by third parties and therefore cannot be considered probable of occurring. Therefore, due to the inherent risks, unknown results and significant uncertainties associated with this matter and the direct correlation to our ability to satisfy our financial obligations that may arise over the applicable twelve month period, we are unable to conclude that it is probable that we will be able to meet our obligations arising within twelve months of the date of issuance of these financial statements under the parameters set forth in this accounting guidance.

Fair Value

Fair Value

Fair value accounting applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements. Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, these accounting requirements establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the

reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access.

Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs might include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs for the asset or liability, and are typically based on an entity’s own assumptions, as there is little, if any, related market activity.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We utilize the fair value hierarchy in our accounting for derivatives (Level 2) and financial instruments (Level 2) and in our reviews for impairment of real estate assets (Level 3) and goodwill (Level 3).

Impairment of Assets

Impairment of Assets

Real estate investments and related intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the property might not be recoverable, which is referred to as a “triggering event.” During the first quarter of 2022, certain of our properties had triggering events due to various indicators of impairment, however, based on our assessment of the undiscounted future cash flows, we did not identify any impairments. In connection with our review of our long-lived assets for impairment, we utilize qualitative and quantitative factors in order to estimate fair value. The significant qualitative factors that we use include age and condition of the property, market conditions in the property’s trade area, competition with other shopping centers within the property’s trade area and the creditworthiness and performance of the property’s tenants. The significant quantitative factors that we use include historical and forecasted financial and operating information relating to the property, such as net operating income, estimated holding periods, occupancy statistics, vacancy projections and tenants’ sales levels.

If there is a triggering event in relation to a property to be held and used, we will estimate the aggregate future cash flows, net of estimated capital expenditures, to be generated by the property, undiscounted and without interest charges. In addition, this estimate may consider a probability weighted cash flow estimation approach when alternative courses of action to recover the carrying amount of a long-lived asset are under consideration or when a range of possible values is estimated.

The determination of undiscounted cash flows requires significant estimates by our management, including the expected course of action at the balance sheet date that would lead to such cash flows. Subsequent changes in estimated undiscounted cash flows arising from changes in the anticipated action to be taken with respect to the property could affect the determination of whether an impairment exists, and the effects of such changes could materially affect our net income. If the estimated undiscounted cash flows are less than the carrying value of the property, the carrying value is written down to its fair value. We intend to hold and operate our properties long-term, which reduces the likelihood that our carrying value is not recoverable. A shortened holding period would increase the likelihood that the carrying value is not recoverable.

Assessment of our ability to recover certain lease-related costs must be made when we have a reason to believe that a tenant might not be able to perform under the terms of the lease as originally expected. This requires us to make estimates as to the recoverability of such costs.

An other-than-temporary impairment of an investment in an unconsolidated joint venture is recognized when the carrying value of the investment is not considered recoverable based on evaluation of the severity and duration of the decline in value. To the extent impairment has occurred, the excess carrying value of the asset over its estimated fair value is recorded as a reduction to income.

Assets Classified as Held for Sale

Assets Classified as Held for Sale

The determination to classify an asset as held for sale requires significant estimates by us about the property and the expected market for the property, which are based on factors including recent sales of comparable properties, recent expressions of interest in the property, financial metrics of the property and the physical condition of the property. We must also determine if it will be possible under those market conditions to sell the property for an acceptable price within one year. When assets are identified by our management as held for sale, we discontinue depreciating the assets and estimate the sales price, net of selling costs, of such assets. We generally consider operating properties to be held for sale when they meet criteria such as whether the sale transaction has been approved by the appropriate level of management and there are no known material contingencies relating to the sale such that the sale is probable and is expected to qualify for recognition as a completed sale within one year. If the expected net sales price of the asset that has been identified as held for sale is less than the net book value of the asset, the asset is written down to fair value less the cost to sell. Assets and liabilities related to assets classified as held for sale are presented separately in the consolidated balance sheets. If we determine that a property no longer meets the held-for-sale criteria, we reclassify the property’s assets and liabilities to their original locations on the consolidated balance sheet and record depreciation and amortization expense for the period that the property was in held-for-sale status.

As of March 31, 2022, we determined that two of our hotel land parcels, three of our multifamily land parcels, one vacant anchor box space and one retail property met the criteria to be classified as held for sale. As of December 31, 2021, we determined that two of our hotel land parcels, two of our multifamily land parcels and a vacant anchor box space met the criteria to be classified as held for sale.

Share-Based Compensation

Share-Based Compensation

On March 4, 2022, the Company approved the 2022-2024 Equity Award Program design (the “Program”). Having approved the Program, the Company made long term incentive plan awards in the form of performance-based restricted share units (“PSUs”) and time-based restricted share units (“RSUs”) consisting of 4,838,184 RSUs and 3,548,708 PSUs. The grants of PSUs and RSUs were made pursuant to the Company’s Amended and Restated 2018 Equity Incentive Plan (as amended, the “2018 Equity Incentive Plan”). The settlement of RSUs or PSUs may be made in cash or shares as determined by the Executive Compensation and Human Resources Committee. As such, these awards are accounted for as liability awards and remeasured at fair value each reporting period. The liability for these awards is included in accrued expenses and other liabilities in the consolidated balance sheets and compensation cost is recorded ratably over the respective vesting periods.

Under the Program, the number of common shares to be issued by the Company with respect to the PSUs, if any, depends on the Company’s achievement of certain specified operating performance measures and a modification based on total shareholder return (“TSR”) for the three-year period beginning January 1, 2022 and ending on the earlier of December 31, 2024 or the date of a change in control of the Company (the “Measurement Period”).

The preliminary number of common shares to be issued by the Company with respect to the PSUs awarded is based on a multiple determined by achievement of certain specified operating performance measures during the Measurement Period. These performance measures, the three-year core mall sales per square foot, three-year average quarterly core mall total occupancy and the three-year corporate debt yield, are each weighted 33.3%. The Committee approved minimum, target and maximum performance levels for both measures. For all participants, the minimum performance level will have a 0.5 multiplier, the target performance level will have a 1.0 multiplier and the maximum performance level will have a 2.0 multiplier. The preliminary number of common shares to be issued by the Company as determined under the operating performance goals will be adjusted, upwards or downwards, depending on the Company’s TSR performance over the Measurement Period relative to the TSR performance of other real estate investment trusts comprising a leading index of retail real estate investment trusts. Dividends, if any, on the Company’s common shares are deemed to be paid with respect to PSUs and credited to the PSU accounts and applied to “acquire” more PSUs at the 20-day average closing price per common share ending on the dividend payment date.

With respect to the portion of the long-term incentive awards made in the form of RSUs, the RSUs generally will vest in three equal annual installments for all grants except director grants and two equal installments for the Company’s directors commencing on March 4, 2023, subject to continued employment. During the period that the RSUs have not vested, the holder will have no rights as a shareholder with respect to the RSUs; however, dividends, if any, on the Company’s common shares are deemed to be paid with respect to RSUs and credited to the RSU accounts and applied to “acquire” more RSUs at the 20-day average closing price per common share ending on the dividend payment date.

New Accounting Developments

New Accounting Developments

In October 2021, the FASB issued ASU 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805), which provides amendments to address diversity and inconsistency related to the recognition and measurement of contract assets and liabilities acquired in a business combination. Amendments require that an acquirer recognize and measure contract assets/liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. While this standard is not in effect at this time, the Company will evaluate and implement if applicable.

XML

Real Estate Activities (Tables)

3 Months Ended

Mar. 31, 2022

Real Estate [Abstract]

Investments in Real Estate

Investments in real estate as of March 31, 2022 and December 31, 2021 were comprised of the following:

(in thousands of dollars)	March 31, 2022			December 31, 2021
Buildings, improvements and construction in progress	$	2,740,712		$	2,762,675
Land, including land held for development		422,509			443,686
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

Schedule of Capitalized Salaries, Commissions and Benefits, Real Estate Taxes and Interest

The following table summarizes our capitalized interest, compensation, including commissions, and real estate taxes for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
(in thousands of dollars)	2022		2021
Development/Redevelopment Activities:
Interest (1)	$	24	$	130
Compensation		46		37
Real estate taxes		—		29
Leasing Activities:
Compensation, including commissions (2)		29		—

(1) Includes interest capitalized on investments in partnerships under development.

(2) The definition of initial direct costs under ASC 842 includes only those incremental costs of a lease that would not have been incurred if the lease had not been obtained. Commissions paid for successful leasing transactions continue to be capitalized.

XML

Investments in Partnerships (Tables)

3 Months Ended

Mar. 31, 2022

Equity Method Investments And Joint Ventures [Abstract]

Summary of Equity Investments

The following table presents summarized financial information of the equity investments in our unconsolidated partnerships as of March 31, 2022 and December 31, 2021:

_____________________

(in thousands of dollars)	March 31, 2022			December 31, 2021
ASSETS:
Investments in real estate, at cost:
Operating properties	$	850,817		$	847,560
Construction in progress		3,534			6,456
Total investments in real estate		854,351			854,016
Accumulated depreciation		(252,849	)		(247,133	)
Net investments in real estate		601,502			606,883
Cash and cash equivalents		66,294			59,004
Deferred costs and other assets, net		155,722			155,247
Total assets		823,518			821,134
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		491,957			493,904
FDP Term Loan, net		194,602			194,602
Partnership Loan		118,560			115,543
Other liabilities		145,691			141,619
Total liabilities		950,810			945,668
Net investment		(127,292	)		(124,534	)
Partners’ share		(63,893	)		(62,771	)
PREIT’s share		(63,399	)		(61,763	)
Excess investment (1)		6,804			6,718
Net investments and advances	$	(56,595	)	$	(55,045	)
Investment in partnerships, at equity	$	12,749		$	16,525
Distributions in excess of partnership investments		(69,344	)		(71,570	)
Net investments and advances	$	(56,595	)	$	(55,045	)

(1)Excess investment represents the unamortized difference between our investment and our share of the equity in the underlying net investment in the unconsolidated partnerships. The excess investment is amortized over the life of the properties, and the amortization is included in “Equity in loss of partnerships.”

Summary of Share of Equity in Loss (Income) of Partnerships

The following table summarizes our share of equity in (loss) income of partnerships for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
(in thousands of dollars)	2022			2021
Real estate revenue	$	29,889		$	24,900
Expenses:
Property operating and other expenses		(11,874	)		(13,739	)
Interest expense (1)		(11,754	)		(10,704	)
Depreciation and amortization		(6,655	)		(6,930	)
Total expenses		(30,283	)		(31,373	)
Net loss		(394	)		(6,473	)
Less: Partners’ share		(1	)		3,096
PREIT’s share		(395	)		(3,377	)
Amortization of excess investment		-			(56	)
Equity in loss of partnerships	$	(395	)	$	(3,433	)

(1) Net of capitalized interest expense of $0 and $103 for the three months ended March 31, 2022 and 2021, respectively.

XML

Financing Activity (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule Of Credit Facility Interest Expense and Deferred Financing Fee Amortization

Interest expense and deferred financing fee amortization related to the Credit Agreements and the Restructured Credit Agreements for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended March 31,
(in thousands of dollars)	2022		2021
Revolving Facilities:
Interest expense (1)	$	541	$	548
Deferred financing amortization		299		299
Term Loans:
Interest expense (2)		20,448		20,421
Deferred financing amortization		1,784		1,780

(1)All of the expense applied to the First Lien Revolving Facility.

(2)All of the expense applied to the Term Loans, of which $12.5 million and $11.5 million, for March 31, 2022 and March 31, 2021, respectively, was for the Second Lien term Loan Facility and was not paid in cash, but capitalized to the principal balance of the loan.

Carrying and Fair Values of Mortgage Loans

The estimated fair values of our consolidated mortgage loans based on year-end interest rates and market conditions at March 31, 2022 and December 31, 2021 were as follows:

	March 31, 2022				December 31, 2021
(in millions of dollars)	Carrying Value		Fair Value		Carrying Value		Fair Value
Mortgage loans(1)	$	846.5	$	832.7	$	852.5	$	846.6

(1) The carrying value of mortgage loans includes unamortized debt issuance costs of $1.5 million and $1.2 million as of March 31, 2022 and December 31, 2021, respectively.

XML

Cash Flow Information (Tables)

3 Months Ended

Mar. 31, 2022

Supplemental Cash Flow Elements [Abstract]

Summary of Cash, Cash Equivalents, and Restricted Cash Reported within Statement of Cash Flows

The following table provides a summary of cash, cash equivalents, and restricted cash reported within the statement of cash flows as of March 31, 2022 and 2021.

	March 31,
(in thousands of dollars)	2022		2021
Cash and cash equivalents	$	45,554	$	44,637
Restricted cash included in other assets		15,547		9,279
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	61,101	$	53,916

XML

Derivatives (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments

The following table summarizes the terms and estimated fair values of our interest rate swap derivative instruments as of March 31, 2022 and December 31, 2021 based on the year they mature. The notional values provide an indication of the extent of our involvement in these instruments, but do not represent exposure to credit, interest rate or market risks.

Maturity Date	Aggregate Notional Value at March 31, 2022 (in millions of dollars)		Aggregate Fair Value at March 31, 2022 (1)  (in millions of dollars)			Aggregate Fair Value at December 31, 2021 (1)  (in millions of dollars)			Weighted Average Interest Rate
Derivatives in Cash Flow Hedging Relationships
Interest Rate Swaps
2023	$	300.0	$	(2.6	)	$	(8.1	)		2.70	%

(1)As of March 31, 2022 and December 31, 2021, derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy and we did not have any significant recurring fair value measurements related to derivative instruments using significant unobservable inputs (Level 3).

Effect of Our Derivative Financial Instruments on Our Consolidated Statements of Operations

The tables below present the effect of derivative financial instruments on accumulated other comprehensive (loss) income and on our consolidated statements of operations for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Instruments				Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Interest Expense
(in millions of dollars)	2022		2021		2022		2021
Derivatives in Cash Flow Hedging Relationships
Interest rate products	$	3.9	$	0.2	$	1.9	$	2.4

	Three Months Ended March 31,
(in millions of dollars)	2022			2021
Total interest expense presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded	$	(31.4	)	$	(30.7	)
Amount of (loss) gain reclassified from accumulated other comprehensive income into interest expense	$	1.9		$	2.4

XML

Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Lease, Cost

The following table presents additional information pertaining to the Company’s leases:

	Three Months Ended March 31,
	2022								2021
(in thousands of dollars)	Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total		Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	202	$	—	$	—	$	202	$	202	$	—	$	—	$	202
Interest on lease liabilities		78		—		—		78		63		—		—		63
Operating lease costs		—		585		68		653		—		436		311		747
Variable lease costs		—		46		206		252		—		45		63		108
Total lease costs	$	280	$	631	$	274	$	1,185	$	265	$	481	$	374	$	1,120

Supplemental Cash Flows and Terms

Other information related to leases as of and for the three months ended March 31, 2022 and 2021 are as follows:

(in thousands of dollars)	2022			2021
Cash paid for the amounts included in the measurement of lease liabilities
Operating cash flows used for finance leases	$	63		$	63
Operating cash flows used for operating leases	$	653		$	552
Financing cash flows used for finance leases	$	185		$	184
Weighted average remaining lease term-finance leases (months)		72			83
Weighted average remaining lease term-operating leases (months)		292			296
Weighted average discount rate-finance leases		4.34	%		4.35	%
Weighted average discount rate-operating leases		6.44	%		6.44	%

Future Minimum Payments Against Lease Liabilities Which Recorded in Accrued Expenses and Other Liabilities

Future payments against lease liabilities, which are recorded in Accrued expenses and other liabilities, as of March 31, 2022 are as follows:

(in thousands of dollars)	Finance leases			Operating leases			Total
April 1 to December 31, 2022	$	740		$	1,951		$	2,691
2023		983			2,556			3,539
2024		949			2,471			3,420
2025		929			2,427			3,356
2026		925			2,429			3,354
Thereafter		1,148			48,658			49,806
Total undiscounted lease payments		5,674			60,492			66,166
Less imputed interest		(686	)		(31,147	)		(31,833	)
Total lease liabilities	$	4,988		$	29,345		$	34,333

Lessor, Operating Lease, Payments to be Received, Maturity

As of March 31, 2022, the fixed contractual lease payments, including minimum rents and fixed CAM amounts, to be received over the next five years pursuant to the terms of noncancelable operating leases with initial terms greater than one year are included in the table below. The amounts presented assume that no leases are renewed and no renewal options are exercised. Additionally, the table does not include variable lease payments that may be received under certain leases for percentage rents or the reimbursement of operating costs, such as common area expenses, utilities, insurance and real estate taxes. These variable lease payments are recognized in the period when the applicable expenditures are incurred or, in the case of percentage rents, when the sales data is made available.

(in thousands of dollars)
April 1 to December 31, 2022	$	138,433
2023		167,308
2024		144,553
2025		115,992
2026		96,854
Thereafter		248,425
	$	911,565

XML

Basis of Presentation - Nature of Operations (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) Subsidiary Property Segment State shares	Dec. 31, 2021 Property
Real Estate Properties [Line Items]
Number of real estate properties	25
Number of states in which entity operates | State	9
Common stock, conversion ratio	1
Period of conversion	1 year
Redeemable noncontrolling interest, equity, other, fair value | $	$ 0.6
Limited partners' capital account, units outstanding (in shares) | shares	1,030,510
Number of subsidiaries | Subsidiary	2
Number of reportable segments | Segment	1
FDP Loan Agreement
Real Estate Properties [Line Items]
Debt Balance | $	$ 194.6
Debt instrument, maturity date	Jan. 22, 2023
Debt instrument extended maturity period	2024-01
Percentage of minimum debt yield covenant	10.00%
Percentage of quarterly debt yield	10.00%
Loan agreement payment condition to achieve projected debt yield	As of June 30, 2022, the debt yield covenant threshold will be 9%, subsequent to which the joint venture would be required to pay down the term loan to achieve a 9% debt yield.
Joint ventures obligations	50.00%
Percentage of guarantee of outstanding debt balance	50.00%
FDP Loan Agreement | Maximum
Real Estate Properties [Line Items]
Percentage of projected debt yield	9.00%
PREIT Associates, L.P. - Operating Partnership
Real Estate Properties [Line Items]
Interest in the Operating Partnership	98.70%
Mall
Real Estate Properties [Line Items]
Number of real estate properties	20
Other Retail Properties
Real Estate Properties [Line Items]
Number of real estate properties	4
Development Properties
Real Estate Properties [Line Items]
Number of real estate properties	1
Hotel Land Parcels
Real Estate Properties [Line Items]
Number of properties held for sale	2	2
Multifamily Land Parcels
Real Estate Properties [Line Items]
Number of properties held for sale	3	2
Vacant Anchor Box Space
Real Estate Properties [Line Items]
Number of properties held for sale	1	1
Retail Property
Real Estate Properties [Line Items]
Number of properties held for sale	1

XML

Basis of Presentation - Share-Based Compensation (Details)	Mar. 04, 2022 Multiplier Installments shares
RSUs
Real Estate Properties [Line Items]
Number of shares, Granted | shares	4,838,184
RSUs | 2018 Equity Incentive Plan
Real Estate Properties [Line Items]
Average closing price common share traded period	20 days
RSUs | 2018 Equity Incentive Plan | Employees
Real Estate Properties [Line Items]
Vest in equal installments | Installments	3
RSUs | 2018 Equity Incentive Plan | Director
Real Estate Properties [Line Items]
Vest in equal installments | Installments	2
Vesting commencement date	Mar. 04, 2023
PSUs
Real Estate Properties [Line Items]
Number of shares, Granted | shares	3,548,708
PSUs | 2018 Equity Incentive Plan
Real Estate Properties [Line Items]
Award modification measurement period based on total shareholder return	3 years
Award modification measurement period based on total shareholder return start date	Jan. 01, 2022
Award modification measurement period based on total shareholder return end date	Dec. 31, 2024
Share-based payment arrangement performance level multiplier	1.0
Average closing price common share traded period	20 days
PSUs | 2018 Equity Incentive Plan | Minimum
Real Estate Properties [Line Items]
Share-based payment arrangement performance level multiplier	0.5
PSUs | 2018 Equity Incentive Plan | Maximum
Real Estate Properties [Line Items]
Share-based payment arrangement performance level multiplier	2.0
PSUs | 2018 Equity Incentive Plan | Core Mall Sales Per Square Foot
Real Estate Properties [Line Items]
Performance measures vesting period	3 years
Performance measures weighted average	33.30%
PSUs | 2018 Equity Incentive Plan | Average Quarterly Core Mall Occupancy
Real Estate Properties [Line Items]
Performance measures vesting period	3 years
Performance measures weighted average	33.30%
PSUs | 2018 Equity Incentive Plan | Corporate Debt Yield
Real Estate Properties [Line Items]
Performance measures vesting period	3 years
Performance measures weighted average	33.30%

XML

Real Estate Activities - Investments in Real Estate (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Real Estate [Abstract]
Buildings, improvements and construction in progress	$ 2,740,712	$ 2,762,675
Land, including land held for development	422,509	443,686
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

XML

Real Estate Activities - Schedule of Capitalized Interest, Compensation, Including Commissions, and Real Estate Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Real Estate [Abstract]
Interest	$ 24	$ 130
Compensation	46	37
Real estate taxes	0	29
Compensation, including commissions	$ 29	$ 0

XML

Real Estate Activities - Impairment of Assets (Details) - Exton Square Mall - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Mar. 31, 2022
Real Estate Properties [Line Items]
Impairment of real estate assets	$ 8.4
Purchase and sale agreement, Consideration		$ 27.5
Residential Land Parcel
Real Estate Properties [Line Items]
Purchase and sale agreement, Initial amount		$ 8.0

XML

Real Estate Activities - Disposition (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Feb. 28, 2022	Mar. 31, 2022	Dec. 31, 2020	Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of preferred equity		$ 3,700
Mortgage loans payable, net		844,987		$ 851,283
Proceeds from redemption of preferred equity	$ 2,500
Valley View Mall
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on derecognition of property			$ 8,100
Valley View Mall | Mortgage Loan
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Mortgage loans payable, net		$ 27,200		$ 27,200

XML

Investments in Partnerships - Summary of Equity Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investments in real estate, at cost:
Operating properties	$ 850,817	$ 847,560
Construction in progress	3,534	6,456
Total investments in real estate	854,351	854,016
Accumulated depreciation	(252,849)	(247,133)
Net investments in real estate	601,502	606,883
Cash and cash equivalents	66,294	59,004
Deferred costs and other assets, net	155,722	155,247
Total assets	823,518	821,134
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net	491,957	493,904
FDP Term Loan, net	194,602	194,602
Partnership Loan	118,560	115,543
Other liabilities	145,691	141,619
Total liabilities	950,810	945,668
Net investment	(127,292)	(124,534)
Partners’ share	(63,893)	(62,771)
PREIT’s share	(63,399)	(61,763)
Excess investment	6,804	6,718
Net investments and advances	(56,595)	(55,045)
Investment in partnerships, at equity	12,749	16,525
Distributions in excess of partnership investments	$ (69,344)	$ (71,570)

XML

Investments in Partnerships - Summary of Share of Equity in (Loss) Income of Partnerships (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Equity Method Investments And Joint Ventures [Abstract]
Real estate revenue	$ 29,889	$ 24,900
Expenses:
Property operating and other expenses	(11,874)	(13,739)
Interest expense	(11,754)	(10,704)
Depreciation and amortization	(6,655)	(6,930)
Total expenses	(30,283)	(31,373)
Net loss	(394)	(6,473)
Less: Partners’ share	(1)	3,096
PREIT’s share	(395)	(3,377)
Amortization of excess investment		(56)
Equity in (loss) income of partnerships	$ (395)	$ (3,433)

XML

Investments in Partnerships - Summary of Share of Equity in Loss of Partnerships (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Equity Method Investments And Joint Ventures [Abstract]
Capitalized interest expense	$ 0	$ 103

XML

Investments in Partnerships - FDP Loan Agreement (Details) - FDP Loan Agreement - USD ($) $ in Millions		3 Months Ended
	Dec. 10, 2020	Mar. 31, 2022	Sep. 30, 2019	Jul. 31, 2019	Jan. 31, 2018
Schedule Of Equity Method Investments [Line Items]
Long-term debt				$ 350.0	$ 250.0
Proceeds from (Repayments of) Long-term debt and capital securities			$ 51.0
Distribution of financing proceeds from equity method investee			$ 25.0
Outstanding principal		$ 194.6
Debt instrument, maturity date		Jan. 22, 2023
Debt instrument extension term		1 year
Debt, variable interest rate		2.50%
Percentage of full recourse guarantee		50.00%
Full recourse guarantee amount		$ 50.0
Federal Funds Rate
Schedule Of Equity Method Investments [Line Items]
Debt, variable interest rate		0.50%
LIBOR Market Index Rate
Schedule Of Equity Method Investments [Line Items]
Debt, variable interest rate		1.00%
LIBOR
Schedule Of Equity Method Investments [Line Items]
Debt, variable interest rate		3.50%
Partnership Loan
Schedule Of Equity Method Investments [Line Items]
Principal payment	$ 100.0
Outstanding principal	$ 301.0	$ 201.0
Accrued interest percentage		15.00%
Cash distributions description		50/50 cash distributions to the Company and its joint venture partner

XML

Investments in Partnerships - Mortgage Loan Activity (Details) - USD ($) $ in Thousands	Mar. 01, 2022	May 25, 2021	May 01, 2022	Mar. 31, 2022	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Mortgage loans payable, net				$ 844,987	$ 851,283
Debt instrument interest only payments period		2022-05
Pavilion at Market East
Schedule of Equity Method Investments [Line Items]
Mortgage loans payable, net				$ 7,600
Mortgage Loan | Pavilion at Market East
Schedule of Equity Method Investments [Line Items]
Debt instrument, payment terms		2 years
Debt instrument, maturity date		May 31, 2023
Debt, variable interest rate		4.00%
Mortgage Loan | Gloucester Premium Outlets
Schedule of Equity Method Investments [Line Items]
Mortgage loans payable, net			$ 86,000
Debt instrument, maturity date	Mar. 01, 2023
LIBOR | Mortgage Loan | Pavilion at Market East
Schedule of Equity Method Investments [Line Items]
Debt, variable interest rate		3.50%

XML

Financing Activity - Credit Agreements (Details)						3 Months Ended
	Oct. 01, 2021	Jun. 30, 2021	Feb. 08, 2021 USD ($)	Dec. 10, 2020 USD ($) Award	Oct. 16, 2020 USD ($)	Mar. 31, 2022 USD ($) ft² Property Award	Sep. 30, 2021	Dec. 31, 2021 USD ($)	Nov. 01, 2020 USD ($)
Debt Instrument [Line Items]
Outstanding line of credit						$ 53,818,000		$ 54,549,000
Amounts equal to greater than termination or modification of lease						2,500,000
Maximum
Debt Instrument [Line Items]
Amounts received on behalf of guarantor in consideration of termination or modification of lease.						$ 3,500,000
Minimum
Debt Instrument [Line Items]
Leased premises | ft²						7,500
Debt instrument discounted amount						$ 750,000
Percentage of aggregate contractual base rent						25.00%
Outstanding obligations						$ 3,500,000
Unsecured Debt
Debt Instrument [Line Items]
Debt issuance costs, line of credit arrangements						$ 4,800,000
First Lien Credit Agreement Base Rate Loans | Federal Funds Rate
Debt Instrument [Line Items]
Debt, variable interest rate						0.50%
First Lien Credit Agreement Base Rate Loans | LIBOR Market Index Rate
Debt Instrument [Line Items]
Debt, variable interest rate						1.00%
First Lien Credit Agreement Base Rate Loans | Base Rate
Debt Instrument [Line Items]
Debt, variable interest rate						1.50%
Second Lien Credit Agreement Base Rate Loan | Federal Funds Rate
Debt Instrument [Line Items]
Debt, variable interest rate						0.50%
Second Lien Credit Agreement Base Rate Loan | LIBOR Market Index Rate
Debt Instrument [Line Items]
Debt, variable interest rate						1.00%
Second Lien Credit Agreement Base Rate Loan | Base Rate
Debt Instrument [Line Items]
Debt, variable interest rate						1.50%
Debt instrument interest rate						7.00%
Second Lien Credit Agreement LIBOR Loans | Maximum
Debt Instrument [Line Items]
Debt, variable interest rate						0.50%
Second Lien Credit Agreement LIBOR Loans | LIBOR
Debt Instrument [Line Items]
Debt, variable interest rate						8.00%
Credit Agreements
Debt Instrument [Line Items]
Number of credit agreements | Award				2		3
Debt instrument maturity period						2022-12
Debt instrument, payment terms						2 years
Number of properties | Property						12
Number of malls | Property						9
Number of additional parcels | Property						3
Debt instrument extension term						1 year
Debt instrument extended maturity period						2023-12
Debt instrument minimum liquidity						$ 35,000,000.0
Percentage of minimum corporate debt yield	7.25%					8.00%	6.50%
Percentage of maximum loan to value ratio						105.00%
Debt Instrument, restrictive covenants						The Credit Agreements each provide for a two-year maturity of December 2022 (the “Maturity Date”), subject to a one-year extension to December 2023 at the borrowers’ option, subject to (i) minimum liquidity of $35.0 million, (ii) a minimum corporate debt yield of 8.0%, (iii) a maximum loan-to-value ratio of 105% for the total first lien and second lien loans and letters of credit and the Borrowing Base Properties as determined by an appraisal and (iv) no default or event of default existing and our representations and warranties being true in all material respects. The loans under the Credit Agreements are repayable in full on the Maturity Date, subject to mandatory prepayment provisions in the event of certain events including asset sales, incurrence of indebtedness, issuances of equity and receipt of casualty insurance proceeds. The terms of our Credit Agreements place restrictions on, among other things, and subject to certain exceptions, our ability to make certain restricted payments (including payments of dividends), make certain types of investments and acquisitions, issue redeemable securities, incur additional indebtedness, incur liens on our assets, enter into agreements with a negative pledge, make certain intercompany transfers, merge, consolidate, or sell our assets or the equity interests in our subsidiaries, amend our organizational documents or material contracts, enter into certain transactions with affiliates, or enter into derivatives contracts. Additionally, if we receive net cash proceeds from certain capital events (including equity issuances), we are required to prepay loans under our Credit Agreements. In addition, the Credit Agreements contain cross-default provisions that trigger an event of default if we fail to make certain payments or otherwise fail to comply with our obligations with respect to certain of our other indebtedness.
Minimum liquidity comprised of unrestricted cash held in certain deposit accounts subject to control agreements						$ 25,000,000.0
Maximum certain other deposit account not subject to control agreement						5,000.0
Percentage of minimum senior debt yield		11.35%
Maximum cash not retain in property level accounts held by subsidiaries						6,500,000
Credit Agreements | Term Loans
Debt Instrument [Line Items]
Debt instrument, payment terms				7 years
Outstanding borrowings						976,500,000			$ 590,000,000.0
Credit Agreements | First Lien Revolving Facility
Debt Instrument [Line Items]
Outstanding line of credit						53,800,000
Remaining borrowing capacity						76,200,000
Credit Agreements | 2018 Revolving Facility
Debt Instrument [Line Items]
Maximum borrowing						$ 375,000,000.0
Debt instrument, payment terms						7 years
Outstanding line of credit									375,000,000.0
Credit Agreements | A2018 Term Loan Facility
Debt Instrument [Line Items]
Maximum borrowing						$ 300,000,000.0
Credit Agreements | A2014 Seven Year Term Loan
Debt Instrument [Line Items]
Maximum borrowing						250,000,000.0
Credit Agreements | Bridge Facility
Debt Instrument [Line Items]
Maximum borrowing						$ 30,000,000.0
Outstanding line of credit									$ 55,000,000.0
Debt instrument, maturity date						Oct. 31, 2020
Ability request additional commitment amount						$ 25,000,000.0
Increase in aggregate amount of commitments					$ 25,000,000.0
Secured First Lien Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing				$ 130,000,000.0
Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing				10,000,000.0
First Lien Term Loan Facility
Debt Instrument [Line Items]
Maximum borrowing				384,500,000
Second Lien Term Loan Facility
Debt Instrument [Line Items]
Maximum borrowing				$ 535,200,000
7-Year Term Loan
Debt Instrument [Line Items]
Loan agreement entered date				Jan. 08, 2014
Debt instrument, payment terms				7 years
Bridge Credit Agreement
Debt Instrument [Line Items]
Loan agreement entered date				Aug. 11, 2020
Two Thousand Eighteen Amended And Restated Credit Agreement
Debt Instrument [Line Items]
Loan agreement entered date				May 24, 2018
2018 Credit Agreement
Debt Instrument [Line Items]
Debt instrument, payment terms				7 years
Revolving Loans
Debt Instrument [Line Items]
Debt, variable interest rate						2.50%
Revolving Loans | LIBOR
Debt Instrument [Line Items]
Debt, variable interest rate						3.50%
First Lien Credit Agreement
Debt Instrument [Line Items]
Days of interest period						30 days
Percentage of amount greater than equal to 50% of aggregate amount of revolving commitments						0.35%
Percentage of daily amount of unused revolving commitments						50.00%
Percentage of amount less than 50% of aggregate amount of revolving commitments						0.25%
Debt instrument, variable rate description						Amounts borrowed under the First Lien Credit Agreement may be either Base Rate Loans or LIBOR Loans. Base Rate Loans bear interest at the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) the LIBOR Market Index Rate plus 1.0%, provided that the Base Rate will not be less than 1.50% per annum, in each case plus (w) for revolving loans, 2.50% per annum, and (x) for term loans, 4.74% per annum. LIBOR Loans bear interest at LIBOR plus (y) for revolving loans, 3.50% per annum, and (z) for term loans, 5.74% per annum, in each case, provided that LIBOR will not be less than 0.50% per annum. Interest is due to be paid in cash on the last day of each applicable interest period (with rolling 30-day interest periods) and on the Maturity Date. We are required to pay certain fees to the administrative agent
First Lien Credit Agreement | LIBOR | Maximum
Debt Instrument [Line Items]
Debt, variable interest rate						0.50%
First Lien Credit Agreement | Term Loans
Debt Instrument [Line Items]
Debt, variable interest rate						4.74%
First Lien Credit Agreement | Term Loans | LIBOR
Debt Instrument [Line Items]
Debt, variable interest rate						5.74%
Second Lien Credit Agreement
Debt Instrument [Line Items]
Debt instrument, payment terms						7 years
Days of interest period						30 days
Debt instrument, variable rate description						Amounts borrowed under the Second Lien Credit Agreement may be either Base Rate Loans or LIBOR Loans. Base Rate Loans bear interest at the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) the LIBOR Market Index Rate plus 1.0%, provided that the Base Rate will not be less than 1.50% per annum, in each case plus 7.00% per annum. LIBOR Loans bear interest at LIBOR plus 8.00% per annum, provided that LIBOR will not be less than 0.50% per annum. Interest is due to be paid in kind on the last day of each applicable interest period (with rolling 30-day interest periods) by adding the accrued and unpaid amount thereof to the principal balance of the loans under the Second Lien Credit Agreement and then accruing interest on the increased principal amount (provided that after the discharge of our Senior Debt Obligations, interest will be paid in cash). We are required to pay certain fees to the administrative agent for the account of the lenders in connection with the Second Lien Credit Agreement.
First Amendment
Debt Instrument [Line Items]
Debt instrument waiver of default interest			$ 5,300,000
Principal amount of loans outstanding				$ 535,200,000

XML

Financing Activity - Interest Expense and Deferred Financing Amortization (Details) - Credit Agreements and Restructured Credit Agreements - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
2018 Revolving Facility
Debt Instrument [Line Items]
Interest expense	$ 541	$ 548
Deferred financing amortization	299	299
Term Loans
Debt Instrument [Line Items]
Interest expense	20,448	20,421
Deferred financing amortization	$ 1,784	$ 1,780

XML

Financing Activity - Interest Expense and Deferred Financing Amortization (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Second lien Term Loans
Debt Instrument [Line Items]
Interest expense	$ 12.5	$ 11.5

XML

Financing Activity - Carrying and Fair Values of Mortgage Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Mortgage loans, carrying value	$ 844,987	$ 851,283
Carrying Value | Mortgage Loan
Debt Instrument [Line Items]
Mortgage loans, carrying value	846,500	852,500
Fair Value | Mortgage Loan
Debt Instrument [Line Items]
Mortgage loans, fair value	$ 832,700	$ 846,600

XML

Financing Activity - Carrying and Fair Values of Mortgage Loans (Parenthetical) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Mortgage Loan
Debt Instrument [Line Items]
Debt issuance costs, line of credit arrangements	$ 1.5	$ 1.2

XML

Financing Activity - Mortgage Loan Activity (Details) $ in Millions	Dec. 10, 2021 USD ($)
Woodland Amendment | Mortgage Loan | Commercial Real Estate
Debt Instrument [Line Items]
Lender fees as additional debt issuance costs	$ 0.3

XML

Cash Flow Information - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Other Significant Noncash Transactions [Line Items]
Cash and cash equivalents and restricted cash	$ 61,101,000	$ 53,916,000	$ 58,077,000	$ 51,231,000
Tenant security deposits	1,700,000	1,400,000
Cash paid for interest	16,500,000	16,300,000
Net of capitalized interest	24,000	100,000
Aggregate repayments on term loan	2,437,000	0
Increase (decrease) in accrued construction costs	(3,800,000)	$ 300,000
First Lien Revolving Facility
Other Significant Noncash Transactions [Line Items]
Aggregate repayments on term loan	700,000
Line of credit facilities gross borrowings	0
Line of credit facilities gross repayments	0
Term Loans
Other Significant Noncash Transactions [Line Items]
Aggregate repayments on term loan	$ 1,700,000

XML

Cash Flow Information - Summary of Cash, Cash Equivalents, and Restricted Cash Reported within Statement of Cash Flows (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Cash And Cash Equivalents [Abstract]
Cash and cash equivalents	$ 45,554	$ 43,852	$ 44,637
Restricted cash included in other assets	15,547		9,279
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 61,101	$ 58,077	$ 53,916	$ 51,231

XML

Derivatives - Additional Information (Details) $ in Millions			3 Months Ended
	Dec. 22, 2020 USD ($) Derivativeinstrument	Dec. 10, 2020 USD ($) Derivativeinstrument	Mar. 31, 2022 USD ($) Derivativeinstrument	Mar. 31, 2021 USD ($) Derivativeinstrument
Derivative Instruments [Line Items]
Number of designated interest rate swaps from cash flow hedges | Derivativeinstrument	9
Estimate increase to interest expense			$ 2.7
Number of interest rate swaps mature not re-designated | Derivativeinstrument				4
Number of interest rate swaps from cash flow hedges not re-designated | Derivativeinstrument			0
Amount of gain or (loss) reclassified from accumulated other comprehensive income into interest expense			$ (1.9)	$ (2.4)
Interest rate derivative liabilities, at fair value			2.6
Derivative asset, fair value, gross liability			3.3
Interest Rate Swap
Derivative Instruments [Line Items]
Derivative, notional amount	$ 375.0		$ 300.0
Weighted average interest rate			2.70%
Credit Agreements
Derivative Instruments [Line Items]
Debt instrument, payment terms			2 years
Credit Agreements | Term Loans
Derivative Instruments [Line Items]
Debt instrument, payment terms		7 years
Number of de-designated interest rate swaps from cash flow hedges as a result of financial restructuring | Derivativeinstrument		7
Loss recorded within interest expense due to reclassification of amounts in other comprehensive (loss) income to earnings		$ 2.8
Number of voluntarily de-designated interest rate swaps from cash flow hedges | Derivativeinstrument		13	7

XML

Derivatives - Fair Value of Derivative Instruments (Details) - Interest Rate Swaps 2023 Maturity - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Aggregate Notional Value	$ 300.0
Aggregate Fair Value	$ (2.6)	$ (8.1)
Weighted Average Interest Rate	2.70%

XML

Derivatives - Effect of Our Derivative Financial Instruments on Our Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Instruments	$ 3,900	$ 200
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Interest Expense	1,900	2,400
Interest Expense	$ (31,391)	$ (30,731)

XML

Leases - As Lessee (Details)	3 Months Ended
	Mar. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lessee, operating lease, renewal term	60 years
Lessee, Operating Lease, Existence of Option to Extend	true
Lessor, Operating Lease, Existence of Option to Extend	true
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lessee, operating lease, term of contract	3 years
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lessee, operating lease, term of contract	40 years

XML

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amortization of right-of-use assets	$ 202	$ 202
Interest on lease liabilities	78	63
Operating lease costs	653	747
Variable lease costs	252	108
Total lease costs	1,185	1,120
Solar Panel Leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amortization of right-of-use assets	202	202
Interest on lease liabilities	78	63
Operating lease costs
Variable lease costs
Total lease costs	280	265
Ground Leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amortization of right-of-use assets
Interest on lease liabilities
Operating lease costs	585	436
Variable lease costs	46	45
Total lease costs	631	481
Office, equipment, and vehicle leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amortization of right-of-use assets
Interest on lease liabilities
Operating lease costs	68	311
Variable lease costs	206	63
Total lease costs	$ 274	$ 374

XML

Leases - Supplemental Cash Flows and Terms (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Operating cash flows used for finance leases	$ 63	$ 63
Operating cash flows used for operating leases	653	552
Financing cash flows used for finance leases	$ 185	$ 184
Weighted average remaining lease term-finance leases (months)	72 months	83 months
Weighted average remaining lease term-operating leases (months)	292 months	296 months
Weighted average discount rate-finance leases	4.34%	4.35%
Weighted average discount rate-operating leases	6.44%	6.44%

XML

Leases - Future Minimum Payments Against Lease Liabilities Which Recorded in Accrued Expenses and Other Liabilities (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Finance leases
April 1 to December 31, 2022	$ 740
2023	983
2024	949
2025	929
2026	925
Thereafter	1,148
Total undiscounted lease payments	5,674
Less imputed interest	(686)
Total lease liabilities	$ 4,988
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities and Other Liabilities
Operating leases
April 1 to December 31, 2022	$ 1,951
2023	2,556
2024	2,471
2025	2,427
2026	2,429
Thereafter	48,658
Total undiscounted lease payments	60,492
Less imputed interest	(31,147)
Total lease liabilities	$ 29,345
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities and Other Liabilities
Total
April 1 to December 31, 2022	$ 2,691
2023	3,539
2024	3,420
2025	3,356
2026	3,354
Thereafter	49,806
Total undiscounted lease payments	66,166
Less imputed interest	(31,833)
Total lease liabilities	$ 34,333

XML

Leases - Lessor Payments to be Received, Maturity (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Leases [Abstract]
April 1 to December 31, 2022	$ 138,433
2023	167,308
2024	144,553
2025	115,992
2026	96,854
Thereafter	248,425
Total payments to be received	$ 911,565

XML

Commitments and Contingencies - Contractual Obligations (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Fashion District Philadelphia
Other Commitments [Line Items]
Unaccrued contractual obligation and other commitments	$ 0.6
Percentage of contractual obligation	100.00%
Ownership percentage	50.00%
Construction in Progress
Other Commitments [Line Items]
Unaccrued contractual obligation and other commitments	$ 4.1

XML

Commitments and Contingencies - Preferred Dividend Arrearages (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Other Commitments [Line Items]
Preferred shares, authorized (in shares)	25,000,000.0
Cumulative amount of unpaid dividends on preferred stock	$ 47.9
Series B Preferred Stock
Other Commitments [Line Items]
Preferred shares, authorized (in shares)	25,000,000	25,000,000
Preferred stock annual dividend rate	$ 1.8436
Unpaid dividends per share on preferred stock	$ 3.23
Series C Preferred Stock
Other Commitments [Line Items]
Preferred shares, authorized (in shares)	25,000,000	25,000,000
Preferred stock annual dividend rate	$ 1.80
Unpaid dividends per share on preferred stock	$ 3.15
Series D Preferred Stock
Other Commitments [Line Items]
Preferred shares, authorized (in shares)	25,000,000	25,000,000
Preferred stock annual dividend rate	$ 1.7188
Unpaid dividends per share on preferred stock	$ 3.01

XML

Commitments and Contingencies - NYSE Continued Listing Standards (Details) - $ / shares			12 Months Ended
	Feb. 04, 2022	Sep. 25, 2020	Dec. 31, 2020
Other Commitments [Line Items]
Average closing price, per share	$ 1.00	$ 1.00	$ 1.00
Trading period	30 days	30 days	30 days