EX-99.1

EX-99.1 2 pei-ex99_1.htm QUARTERLY SUPPLEMENTAL DISCLOSURE DATED SEPTEMBER 30, 2022 EX-99.1

Exhibit 99.1

Supplemental Financial and Operating Information

September 30, 2022

www.preit.com

NYSE: PEI

NYSE: PEIPRB, PEIPRC, PEIPRD

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

September 30, 2022


Table of Contents
Introduction

Company Information	1

Earnings Release	2

Changes in Funds from Operations (FFO) for the Three and Nine Months Ended September 30, 2022	5

Market Capitalization and Capital Resources	6

Operating Results

Statements of Operations – Three and Nine Months Ended September 30, 2022 and 2021	7

Computation of Earnings Per Share - Three and Nine Months Ended September 30, 2022 and 2021	8

Reconciliation of Net Operating Income (NOI) and EBITDAre (Non-GAAP Measures) – Three and Nine Months Ended September 30, 2022 and 2021	9

Reconciliation of Net Loss (GAAP Measure) to Net Operating Income (NOI) from Consolidated Properties (Non-GAAP Measure) - Three Months Ended September 30, 2022 and 2021	10

Reconciliation of Equity in (Loss) Income of Partnerships (GAAP Measure) to Net Operating Income (NOI) from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Three Months Ended September 30, 2022 and 2021	11

Reconciliation of Net Loss (GAAP Measure) to Net Operating Income (NOI) from Consolidated Properties (Non-GAAP Measure) - Nine Months Ended September 30, 2022 and 2021	12

Reconciliation of Equity in (Loss) Income of Partnerships (GAAP Measure) to Net Operating Income (NOI) from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Nine Months Ended September 30, 2022 and 2021	13

Reconciliation of Net Loss (GAAP Measure) to Funds From Operations (FFO) and Funds Available for Distribution (FAD) (Non-GAAP Measures) – Three and Nine Months Ended September 30, 2022 and 2021	14

Condensed Consolidated Balance Sheets	15

Assets and Liabilities - Equity Method Investments, at Ownership Share (Non-GAAP Measure)	16

Operating Statistics

Leasing Activity Summary – Three and Nine Months Ended September 30, 2022	17

Summarized Sales and Rent Per Square Foot and Occupancy Percentages	19

Mall Occupancy Percentage and Sales Per Square Foot	20

Top Twenty Tenants as of September 30, 2022	21

Lease Expirations as of September 30, 2022	22

Property Information as of September 30, 2022	23

Balance Sheet

Investment in Real Estate - Consolidated Properties	26

Investment in Real Estate - Equity Method Investments at Ownership Share	27

Capital Expenditures – Three and Nine Months Ended September 30, 2022	28

Debt Analysis as of September 30, 2022	29

Debt Schedule as of September 30, 2022	31

Selected Debt Ratios	32

Forward Looking Statements	33

Definitions	34

Pennsylvania Real Estate Investment Trust

Company Information

Background

PREIT (NYSE:PEI) is a publicly traded real estate investment trust (REIT) that owns and manages innovative properties developed to be thoughtful, community-centric hubs. PREIT’s robust portfolio of carefully curated, ever-evolving properties generates success for its tenants and meaningful impact for the communities it serves by keenly focusing on five core areas of established and emerging opportunity: multi-family & hotel, health & tech, retail, essentials & grocery and experiential. Located primarily in densely-populated regions, PREIT is a top operator of high quality, purposeful places that serve as one-stop destinations for customers to shop, dine, play and stay. The portfolio consists of 23 retail properties, 22 of which are operating properties and one is a development property. The 22 operating retail properties have a total of 18.3 million square feet and include 19 shopping malls and three other retail properties.

If you would like to learn more about PREIT or participate in our quarterly earnings conference call, please visit preit.com or contact:

Mario Ventresca

EVP & CFO

One Commerce Square

2005 Market Street, Suite 1000

Philadelphia, PA 19103

Telephone: (215) 875-0703

Heather Crowell

heather@gregoryfca.com

Press release announcements are available on the Company's website at www.preit.com.

CONTACT: AT THE COMPANY

Mario Ventresca

EVP & CFO

(215) 875-0703

INVESTOR RELATIONS

Heather Crowell

heather@gregoryfca.com

PREIT Reports Third Quarter 2022 Results

Core Mall Total Occupancy Increased 480 Basis Points to 94.4%

Core Mall Sales Per Square Foot Were $592 in September, up 10.4% compared to 2019

Average Renewal Spreads were 8.7% for the Quarter Ended September 30

Philadelphia, November 8, 2022 - PREIT (NYSE: PEI) today reported results for the three and nine months ended September 30, 2022. A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is provided in the tables accompanying this release.


	Three Months Ended September 30,						Nine Months Ended September 30,
(per share amounts)	2022			2021			2022			2021
Net loss - basic and diluted	$	(14.52	)	$	(8.44	)	$	(25.25	)	$	(24.05	)
FFO	$	(1.13	)	$	(1.10	)	$	0.38		$	(1.70	)
FFO, as adjusted	$	(1.13	)	$	(1.20	)	$	(0.30	)	$	(3.00	)

“We continue to make meaningful quality improvements throughout the portfolio and capitalize on more opportunities to harvest value from the portfolio evidenced by compliance with our credit facility extension requirements and recent traction in raising capital through asset sales to pay down debt,” said Joseph F. Coradino, Chairman and CEO of PREIT. “The addition of new-to-portfolio tenants and experiences, significant occupancy gains driving revenue and NOI increases, and improving leasing spreads provide additional opportunities to raise capital, which remains our top priority as we aim to unlock value for all stakeholders.”

•

Same Store NOI, excluding lease termination revenue, increased 3.3% and 3.5% for the three and nine months ended September 30, 2022 compared to the same periods ended September 30, 2021, respectively, driven by increased revenue from occupancy improvement.

•

Robust leasing activity is driving increased occupancy with Core Mall Total Occupancy increasing by 480 basis points to 94.4% compared to the third quarter 2021 and improving 60 basis points compared to June 30,2022. Core Mall non-anchor Occupancy improved 310 basis points to 91.4% compared to the third quarter of 2021 and 90 basis points compared to June 30, 2022.

•

Total Core Mall leased space, at 95.6%, exceeds occupied space by 120 basis points, and core mall non-anchor leased space, at 93.2%, is higher than occupied space by 180 basis points when including executed new leases slated for future occupancy, demonstrating the rapid pace of leasing activity.

•

For the rolling 12 month period ended September 30, 2022, core mall comparable sales grew to $592 per square foot, compared to $536 in 2019.

When Cumberland Mall (sold following close of the quarter) is excluded, portfolio sales per square foot as of September 30, 2022 were $598.

•

Average renewal spreads for the three and nine months ended September 30, 2022 were 8.7% and 4.2%, respectively.

•

The Company made notable advances in its capital-raising efforts, including the sale of Cumberland Mall and several outparcels. As part of its debt reduction plan, the Company has applied asset sale proceeds and excess cash from operations to pay down debt by $148 million during the ten months ended October 31, 2022. The Company currently has approximately $130 million in purchase and sales agreements executed or in final stages of negotiation, and has several others in the pipeline for potential future sales.

Leasing and Redevelopment

•

300,000 square feet of leases are signed for future openings, which is expected to contribute annualized gross rent of $7.0 million.

•

Construction has started on a new self-storage facility in previously unused below grade space at Mall at Prince George’s in Hyattsville, MD.

•

A lease has been executed with Tilted 10 and Tilt Studio, an action-packed bi-level 104,000 square foot indoor family entertainment center at Willow Grove Park, adding family entertainment to this locally-loved destination shopping experience, and is now expected to open in 2023.

•

At Moorestown Mall, construction is underway for the new state-of-the-art Cooper University Healthcare facility and the 375-unit apartment development, following completion of the sale of land in the second quarter of 2022.

•

Tenant work is underway for a new prototype, 32,000 square foot, LEGO® Discovery Center at Springfield Town Center with expected opening in third quarter 2023.

Primary Factors Affecting Financial Results for the Three Months Ended September 30, 2022 and 2021

•

Net loss attributable to PREIT common shareholders was $77.2 million (which takes into consideration the accrual of preferred dividends that accumulated during the quarter but have not been paid), or $(14.52) per basic and diluted share for the three months ended September 30, 2022, compared to net loss attributable to PREIT common shareholders of $44.6 million, or $(8.44) per basic and diluted share for the three months ended September 30, 2021.

•

Funds from Operations marginally decreased in the three months ended September 30, 2022 compared to the prior year period primarily due to lower NOI from Non-Same Store properties as a result of the sale of our interest in Gloucester Premium Outlets as well as higher interest expense partially offset by higher NOI from Same Store properties and lower general and administrative expenses.

•

FFO for the three months ended September 30, 2022 was $(1.13) per diluted share and OP Unit compared to $(1.10) per diluted share and OP Unit for the three months ended September 30, 2021.

All NOI and FFO amounts referenced as primary factors affecting financial results above include our share of unconsolidated properties’ revenues and expenses. Additional information regarding changes in operating results for the three and nine months ended September 30, 2022 and 2021 is included on page 15.

Liquidity and Financing Activities

As of September 30, 2022, the Company had $103.9 million available under its First Lien Revolving Credit Facility. The Company’s corporate cash balances, when combined with available credit, provide total liquidity of $113.2 million.

During the quarter, the Company delivered to the Administrative Agent the Notices to Extend the Revolving Termination Date and the Term Loan Maturity Dates as defined in the Senior Credit Agreements. The Company has demonstrated compliance with the extension requirements, subject to a re-calculation of certain debt yield covenants and payment of certain extension fees as set forth in the Senior Credit Agreements.

Additionally, the Fashion District Philadelphia partnership funded the required paydown of the Fashion District Philadelphia mortgage.

Asset Dispositions

During the quarter, the Company executed on the sale of six outparcels for total proceeds of $15.2 million. Subsequent to the close of the quarter, the Company executed on the sale of Cumberland Mall for $44.6 million in gross proceeds, enabling the repayment of the $39.0 million mortgage loan balance.

2022 Outlook

The Company is not issuing detailed guidance at this time.

Conference Call Information

Management has scheduled a conference call for 11:00 a.m. Eastern Time on Tuesday November 8, 2022, to review the Company’s results and future outlook. To listen to the call, please dial 1(888) 330-2024 (domestic toll free), or 1(646) 960-0187 (international), and request to join the PREIT call, Conference ID 9326912, at least fifteen minutes before the scheduled start time as callers could experience delays. Investors can also access the call in a "listen only" mode via the internet at the Company’s website, preit.com. Please allow extra time prior to the call to visit the site and download the necessary software to listen to the Internet broadcast. Financial and statistical information expected to be discussed on the call will also be available on the Company’s website.

For interested individuals unable to join the conference call, the online archive of the webcast will also be available for one year following the call.

About PREIT

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages innovative properties developed to be thoughtful, community-centric hubs. PREIT's robust portfolio of carefully curated, ever-evolving properties generates success for its tenants and meaningful impact for the communities it serves by keenly focusing on five core areas of established and emerging opportunity: multi-family & hotel, health & tech, retail, essentials & grocery and experiential. Located primarily in densely-populated regions, PREIT is a top operator of high quality, purposeful places that serve as one-stop destinations for customers to shop, dine, play and stay. Additional information is available at www.preit.com or on Twitter, Instagram or LinkedIn.

Rounding

Certain summarized information in the tables included may not total due to rounding.

Pennsylvania Real Estate Investment Trust

Changes in Funds from Operations (1)

For the Three and Nine Months Ended September 30, 2022 as compared to the Three and Nine Months Ended September 30, 2021

(all per share amounts on a diluted basis unless otherwise noted; rounded to the nearest half penny; amounts may not total due to rounding)


(in thousands, except per share amounts)	Three Months Ended September 30, 2022			Per Diluted Share and OP Unit			Nine Months Ended September 30, 2022			Per Diluted Share and OP Unit
Funds from Operations, as adjusted September 30, 2021	$	(6,495	)	$	(1.20	)	$	(16,205	)	$	(3.00	)

Changes - Q3 2021 to Q3 2022

Contribution from anchor replacements and new box tenants		543			0.10			1,376			0.26
Impact from bankruptcies		16			0.01			191			0.04
Other leasing activity, including base rent and net CAM and real estate tax recoveries		273			0.05			362			0.07
Lease termination revenue		(641	)		(0.12	)		200			0.04
Credit losses		(4	)		-			(332	)		(0.06	)
Other		382			0.07			1,040			0.19
Same Store NOI(1) from unconsolidated properties		209			0.04			291			0.06
Same Store NOI		778			0.15			3,128			0.60
Non Same Store NOI		(1,235	)		(0.23	)		(22,149	)		(4.08	)
General and administrative expenses		3,488			0.64			7,627			1.41
Capitalization of leasing costs		35			0.01			111			0.02
Other		2,185			0.39			33,049			6.08
Interest expense, net		(4,833	)		(0.89	)		(7,198	)		(1.33	)
Funds from Operations, as adjusted September 30, 2022		(6,077	)		(1.13	)		(1,637	)		(0.30	)
Provision for employee separation expense		5			-			6			-
Insurance recoveries		(2	)		-			(2	)		-
Gain on sale of preferred equity interest		-			-			3,688			0.68
Funds from Operations, September 30, 2022	$	(6,074	)	$	(1.13	)	$	2,055		$	0.38

(1) Funds from Operations and NOI are non-GAAP measures. See definitions of Funds from Operations and NOI on page 34.

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands)


	September 30, 2022			December 31, 2021
MARKET CAPITALIZATION

EQUITY CAPITALIZATION
Common Shares Outstanding		5,369			5,347
OP Units Outstanding		69			69
Total Common Shares and OP Units Outstanding		5,438			5,416
Equity Market Capitalization—Common Shares and OP Units	$	15,825		$	82,865
Series B Preferred Shares, Nominal Value		86,250			86,250
Series C Preferred Shares, Nominal Value		172,500			172,500
Series D Preferred Shares, Nominal Value		125,000			125,000
Total Equity Market Capitalization	$	399,575		$	466,615


DEBT CAPITALIZATION
Secured Debt Balance (1)	$	2,160,108		$	2,253,673

TOTAL MARKET CAPITALIZATION	$	2,559,683		$	2,720,288

Equity Capitalization/Total Market Capitalization		15.6	%		17.2	%
Debt Capitalization/Total Market Capitalization		84.4	%		82.8	%


CAPITAL RESOURCES
Cash and Cash Equivalents	$	32,402		$	69,043
Revolving Facility		130,000			130,000
Amount Outstanding		(26,078	)		(54,549	)
Available Revolving Facility (2)		103,922			75,451
Term Loans		1,132,289			1,120,751
Amount Borrowed		(1,132,289	)		(1,120,751	)
Available Term Loans		-			-
TOTAL	$	136,324		$	144,494

(1) Includes all consolidated mortgages, term loans, and revolving credit facility, as well as our share of mortgage debt from unconsolidated equity method investments, which includes $55.8 million and $97.3 million of secured debt from our share of the FDP Term Loan as of September 30, 2022 and December 31, 2021 and $103.1 million and $57.8 million from our share of the FDP Partnership Loan as of September 30, 2022 and December 31, 2021, respectively.

(2) The available First Lien Revolving Facility borrowings are subject to covenants that may restrict amounts that can be borrowed.

Pennsylvania Real Estate Investment Trust

Statements of Operations – Three and Nine Months Ended September 30, 2022 and 2021

(unaudited)


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in thousands of dollars)	2022			2021			2022			2021
REVENUE:
Real estate revenue:
Lease revenue	$	65,796		$	65,543		$	195,888		$	193,563
Expense reimbursements		4,864			4,650			13,223			12,436
Other real estate revenue		2,086			1,400			5,887			4,828
Total real estate revenue		72,746			71,593			214,998			210,827
Other income		67			143			377			430
Total revenue		72,813			71,736			215,375			211,257
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes		(26,564	)		(26,408	)		(80,511	)		(79,899	)
Utilities		(4,380	)		(3,749	)		(11,469	)		(9,573	)
Other property operating expenses		(2,246	)		(1,972	)		(6,585	)		(6,580	)
Total property operating expenses		(33,190	)		(32,129	)		(98,565	)		(96,052	)
Depreciation and amortization		(28,032	)		(29,142	)		(85,524	)		(88,667	)
General and administrative expenses		(10,965	)		(14,453	)		(32,192	)		(39,819	)
Other expenses		(65	)		(66	)		(143	)		185
Total operating expenses		(72,252	)		(75,790	)		(216,424	)		(224,353	)
Interest expense, net (1)		(36,481	)		(32,426	)		(100,473	)		(95,135	)
Gain on debt extinguishment, net		—			—			—			4,587
Impairment of assets		(42,271	)		(262	)		(42,271	)		(1,564	)
Reorganization expenses		—			—			—			(267	)
Total expenses		(151,004	)		(108,478	)		(359,168	)		(316,732	)
Equity in loss of partnerships (2)		(2,356	)		(1,429	)		(3,939	)		(2,429	)
Gain (loss) on sales of interests in real estate		7,509			(217	)		9,210			(1,191	)
Gain (loss) on sale of equity method investment		(77	)		—			8,976			—
Gain (loss) on sales of real estate by equity method investee		—			(10	)		—			1,337
Gain on sales of non operating real estate		1,772			—			10,527			—
Gain on sale of preferred equity interest		—			—			3,688			—
Net loss		(71,343	)		(38,398	)		(115,331	)		(107,758	)
Less: net loss attributable to noncontrolling interest		989			669			1,718			2,686
Net loss attributable to PREIT		(70,354	)		(37,729	)		(113,613	)		(105,072	)
Less: preferred share dividends		(6,843	)		(6,843	)		(20,531	)		(20,531	)
Net loss attributable to PREIT common shareholders	$	(77,197	)	$	(44,572	)	$	(134,144	)	$	(125,603	)

(1) Net of capitalized interest expense of $47 and $20 for the three months ended September 30, 2022 and 2021, respectively and $92 and $168 for the nine months ended September 30, 2022 and 2021, respectively.

(2) Equity in loss of partnerships is net of capitalized interest expense of $8 and $92 for the three months ended September 30, 2022 and 2021, respectively and $8 and $338 for the nine months ended September 30, 2022 and 2021, respectively.

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share – Three and Nine Months Ended September 30, 2022 and 2021

(unaudited)


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in thousands, except per share amounts)	2022			2021			2022			2021
Net loss used to calculate loss per share—basic and diluted	$	(77,197	)	$	(44,572	)	$	(134,144	)	$	(125,603	)
Basic and diluted loss per share:	$	(14.52	)	$	(8.44	)	$	(25.25	)	$	(24.05	)

Weighted average shares outstanding—basic		5,317			5,279			5,313			5,222
Effect of common share equivalents(1)		—			—			—			—
Weighted average shares outstanding—diluted		5,317			5,279			5,313			5,222

(1) The Company had net losses used to calculate earnings per share for the three and nine months ended September 30, 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.

Pennsylvania Real Estate Investment Trust

Reconciliation of Net Operating Income and Earnings Before Interest, Income Taxes, Depreciation, and Amortization for Real Estate (Non-GAAP Measures) - Three and Nine Months Ended September 30, 2022 and 2021

(in thousands)

Net Operating Income ("NOI") Reconciliation for the Three Months Ended September 30, 2022 and 2021 (1)


	Same Store				Change						Non Same Store					Total
(in thousands of dollars)	2022		2021		$			%			2022			2021		2022		2021
NOI from consolidated properties	$	39,536	$	38,966	$	570			1.5	%	$	20		$	498	$	39,556	$	39,464
NOI attributable to equity method investments, at ownership share		6,688		6,480		208			3.2	%		(3	)		754		6,685		7,234
Total NOI		46,224		45,446		778			1.7	%		17			1,252		46,241		46,698
Less: lease termination revenue		50		733		(683	)		(93.2	%)		-			146		50		879
Total NOI excluding lease termination revenue	$	46,174	$	44,713	$	1,461			3.3	%	$	17		$	1,106	$	46,191	$	45,819

(1) NOI is a non-GAAP measure. See definition of NOI on page 34.

Net Operating Income ("NOI") Reconciliation for the Nine Months Ended September 30, 2022 and 2021 (1)


	Same Store				Change						Non Same Store					Total
(in thousands of dollars)	2022		2021		$			%			2022			2021		2022		2021
NOI from consolidated properties	$	117,126	$	114,289	$	2,837			2.5	%	$	(693	)	$	485	$	116,433	$	114,774
NOI attributable to equity method investments, at ownership share		21,790		21,499		291			1.4	%		1,159			1,977		22,949		23,476
Total NOI		138,916		135,788		3,128			2.3	%		466			2,462		139,382		138,250
Less: lease termination revenue		2,395		3,903		(1,508	)		(38.6	%)		49			146		2,444		4,049
Total NOI excluding lease termination revenue	$	136,521	$	131,885	$	4,636			3.5	%	$	417		$	2,316	$	136,938	$	134,201

(1) NOI is a non-GAAP measure. See definition of NOI on page 34.

Earnings Before Interest, Income Taxes, Depreciation, and Amortization for Real Estate ("EBITDAre") Reconciliation(1)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Net loss	$	(71,343	)	$	(38,398	)	$	(115,331	)	$	(107,758	)
Depreciation and amortization:
Consolidated		28,032			29,142			85,524			88,667
Unconsolidated properties at ownership share		2,678			3,095			8,673			9,257
Interest expense:
Consolidated		36,481			32,426			100,473			95,135
Unconsolidated properties at ownership share		6,319			5,541			18,084			16,224
(Gain) loss on sales of interests in real estate		(7,509	)		217			(9,210	)		1,191
(Gain) loss on sale of equity method investment		77			-			(8,976	)		-
(Gain) loss on sales of real estate by equity method investee		-			10			-			(1,337	)
Gain on debt extinguishment, net		-			-			-			(4,587	)
Impairment of assets		42,271			262			42,271			1,564
EBITDAre	$	37,006		$	32,295		$	121,508		$	98,356

(1) EBITDAre is a non-GAAP measure. See definition on page 35.

Pennsylvania Real Estate Investment Trust

Reconciliation of Net Loss (GAAP Measure) to Net Operating Income from Consolidated Properties (Non-GAAP Measure)

Three Months Ended September 30, 2022 and 2021

(in thousands)


	Three Months Ended September 30,
	2022			2021
Net loss	$	(71,343	)	$	(38,398	)
Other income		(67	)		(143	)
Depreciation and amortization		28,032			29,142
General and administrative expenses		10,965			14,453
Insurance recoveries, net		2			-
(Benefit) Provision for employee separation expenses		(5	)		39
Project costs and other expenses		68			27
Interest expense, net		36,481			32,426
Equity in loss of partnerships		2,356			1,429
Impairment of assets		42,271			262
(Gain) loss on sales of interests in real estate		(7,509	)		217
Loss on sale of equity method investment		77			-
Loss on sales of real estate by equity method investee		-			10
Gain on sales of non operating real estate		(1,772	)		-
NOI from consolidated properties(1)	$	39,556		$	39,464

(1) NOI is a non-GAAP measure. See definition of NOI on page 34.


	Same Store						Non Same Store						Total
	2022			2021			2022			2021			2022			2021
Real estate revenue
Base rent	$	47,786		$	46,364		$	770		$	1,635		$	48,556		$	47,999
CAM reimbursement income		8,414			8,282			142			203			8,556			8,485
Real estate tax income		7,030			6,935			(20	)		6			7,010			6,941
Percentage rent		1,527			1,376			-			-			1,527			1,376
Lease termination revenue		50			691			-			138			50			829
		64,807			63,648			892			1,982			65,699			65,630
Less: credit losses		(22	)		(18	)		118			(68	)		96			(86	)
Lease revenue		64,785			63,630			1,010			1,914			65,795			65,544
Expense reimbursements		4,767			4,523			97			127			4,864			4,650
Other real estate revenue		2,027			1,353			59			46			2,086			1,399
Total real estate revenue		71,579			69,506			1,166			2,087			72,745			71,593
Property operating expenses																	-
CAM and real estate taxes		(25,707	)		(25,126	)		(858	)		(1,282	)		(26,566	)		(26,408	)
Utilities		(4,242	)		(3,611	)		(137	)		(138	)		(4,380	)		(3,749	)
Other property operating expenses		(2,095	)		(1,803	)		(151	)		(169	)		(2,244	)		(1,972	)
Total property operating expenses		(32,044	)		(30,540	)		(1,146	)		(1,589	)		(33,190	)		(32,129	)
NOI from consolidated properties(1)		39,535			38,966			20			498			39,555			39,464
Less: Lease termination revenue		50			691			-			138			50			829
NOI from consolidated properties excluding lease termination revenue(1)	$	39,485		$	38,275		$	20		$	360		$	39,505		$	38,635
% change in Same Store NOI from consolidated properties excluding lease termination revenue				3.2%

(1) NOI is a non-GAAP measure. See definition of NOI on page 34.

Pennsylvania Real Estate Investment Trust

Reconciliation of Equity in (Loss) Income of Partnerships (GAAP Measure) to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure)

Three Months Ended September 30, 2022 and 2021

(in thousands)


	Three Months Ended September 30,
(in thousands of dollars)	2022			2021
Equity in loss of partnerships	$	(2,356	)	$	(1,429	)
Depreciation and amortization		2,678			3,095
Interest expense and other expenses, net		6,363			5,568
NOI from equity method investments at ownership share(1)	$	6,685		$	7,234

(1) NOI is a non-GAAP measure. See definition of NOI on page 34.


	Same Store						Non Same Store						Total
	2022			2021			2022			2021			2022			2021
Real estate revenue
Base rent	$	7,899		$	7,213		$	-		$	541		$	7,900		$	7,754
CAM reimbursement income		1,958			1,754			(2	)		147			1,956			1,901
Real estate tax income		1,114			862			(1	)		111			1,113			973
Percentage rent		110			340			124			182			233			522
Lease termination revenue		-			42			-			8			-			50
		11,081			10,211			121			989			11,202			11,200
Less: credit losses		(105	)		(57	)		-			18			(105	)		(39	)
Lease revenue		10,976			10,154			121			1,007			11,097			11,161
Expense reimbursements		894			479			(2	)		125			893			604
Other real estate revenue		425			673			-			196			424			869
Total real estate revenue		12,295			11,306			119			1,328			12,414			12,634
Property operating expenses
CAM and real estate taxes		(4,174	)		(3,829	)		(64	)		(380	)		(4,239	)		(4,209	)
Utilities		(751	)		(253	)		(1	)		(59	)		(752	)		(312	)
Other property operating expenses		(682	)		(745	)		(57	)		(135	)		(738	)		(880	)
Total property operating expenses		(5,607	)		(4,827	)		(122	)		(574	)		(5,729	)		(5,401	)
NOI from equity method investments at ownership share(1)		6,688			6,479			(3	)		754			6,685			7,233
Less: Lease termination revenue		-			42			-			8			-			50
NOI from equity method investments at ownership share excluding lease termination revenue(1)	$	6,688		$	6,437		$	(3	)	$	746		$	6,685		$	7,183
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				3.9%

(1) NOI is a non-GAAP measure. See definition of NOI on page 34.

Pennsylvania Real Estate Investment Trust

Reconciliation of Net Loss (GAAP Measure) to Net Operating Income from Consolidated Properties (Non-GAAP Measure)

Nine Months Ended September 30, 2022 and 2021

(in thousands)


	Nine Months Ended September 30,
	2022			2021

Net loss	$	(115,331	)	$	(107,758	)
Other income		(377	)		(430	)
Depreciation and amortization		85,524			88,667
General and administrative expenses		32,192			39,819
Insurance recoveries, net		2			(670	)
(Benefit) Provision for employee separation expenses		(6	)		279
Project costs and other expenses		147			205
Interest expense, net		100,473			95,135
Impairment of assets		42,271			1,564
Equity in loss of partnerships		3,939			2,429
Gain on debt extinguishment, net		-			(4,587	)
(Gain) loss on sales of interests in real estate		(9,210	)		1,191
Gain on sale of equity method investment		(8,976	)		-
Gain on sales of real estate by equity method investee		-			(1,337	)
Reorganization expenses		-			267
Gain on sale of preferred equity interest		(3,688	)		-
Gain on sales of interest in non operating real estate		(10,527	)		-
NOI from consolidated properties(1)	$	116,433		$	114,774

(1) NOI is a non-GAAP measure. See definition of NOI on page 34.


	Same Store						Non Same Store						Total
	2022			2021			2022			2021			2022			2021
Real estate revenue
Base rent	$	142,202		$	139,440		$	2,461		$	4,089		$	144,663		$	143,529
CAM reimbursement income		24,924			24,633			415			513			25,339			25,146
Real estate tax income		21,323			20,442			8			120			21,331			20,562
Percentage rent		1,940			1,581			172			-			2,112			1,581
Lease termination revenue		1,549			1,349			40			138			1,589			1,487
		191,938			187,445			3,096			4,860			195,034			192,305
Less: credit losses		759			1,091			95			168			854			1,259
Lease revenue		192,697			188,536			3,191			5,028			195,888			193,564
Expense reimbursements		12,933			12,064			290			372			13,223			12,436
Other real estate revenue		5,639			4,512			247			316			5,886			4,828
Total real estate revenue		211,269			205,112			3,728			5,716			214,997			210,828
Property operating expenses																	-
CAM and real estate taxes		(77,020	)		(75,652	)		(3,491	)		(4,247	)		(80,511	)		(79,899	)
Utilities		(11,027	)		(9,162	)		(443	)		(411	)		(11,470	)		(9,573	)
Other property operating expenses		(6,096	)		(6,009	)		(487	)		(573	)		(6,583	)		(6,582	)
Total property operating expenses		(94,143	)		(90,823	)		(4,421	)		(5,231	)		(98,564	)		(96,054	)
NOI from consolidated properties(1)		117,126			114,289			(693	)		485			116,433			114,774
Less: Lease termination revenue		1,549			1,349			40			138			1,589			1,487
NOI from consolidated properties excluding lease termination revenue(1)	$	115,577		$	112,940		$	(733	)	$	347		$	114,844		$	113,287
% change in Same Store NOI from consolidated properties excluding lease termination revenue				2.3%

(1) NOI is a non-GAAP measure. See definition of NOI on page 34.

Pennsylvania Real Estate Investment Trust

Reconciliation of Equity in (Loss) Income of Partnerships (GAAP Measure) to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure)

Nine Months Ended September 30, 2022 and 2021

(in thousands)


	Nine Months Ended September 30,
(in thousands of dollars)	2022			2021
Equity in loss of partnerships	$	(3,939	)	$	(2,429	)
Depreciation and amortization		8,673			9,257
Impairment of assets		-			265
Interest expense and other expenses, net		18,215			16,384
NOI from equity method investments at ownership share(1)	$	22,949		$	23,477

(1) NOI is a non-GAAP measure. See definition of NOI on page 34.


	Same Store						Non Same Store						Total
	2022			2021			2022			2021			2022			2021
Real estate revenue
Base rent	$	22,969		$	21,853		$	1,053		$	1,649		$	24,022		$	23,502
CAM reimbursement income		5,737			5,656			288			420			6,025			6,076
Real estate tax income		2,887			2,682			213			328			3,100			3,010
Percentage rent		768			667			465			525			1,233			1,192
Lease termination revenue		846			2,554			9			8			855			2,562
		33,207			33,412			2,028			2,930			35,235			36,342
Less: credit losses		99			(278	)		(20	)		25			79			(253	)
Lease revenue		33,306			33,134			2,008			2,955			35,314			36,089
Expense reimbursements		2,047			1,306			195			329			2,242			1,635
Other real estate revenue		1,703			1,380			97			276			1,800			1,656
Total real estate revenue		37,056			35,820			2,300			3,561			39,356			39,381
Property operating expenses
CAM and real estate taxes		(11,449	)		(11,468	)		(705	)		(1,124	)		(12,154	)		(12,592	)
Utilities		(1,788	)		(863	)		(94	)		(140	)		(1,882	)		(1,003	)
Other property operating expenses		(2,029	)		(1,990	)		(342	)		(319	)		(2,371	)		(2,309	)
Total property operating expenses		(15,266	)		(14,321	)		(1,141	)		(1,583	)		(16,407	)		(15,904	)
NOI from equity method investments at ownership share(1)		21,790			21,499			1,159			1,978			22,949			23,477
Less: Lease termination revenue		846			2,554			9			8			855			2,562
NOI from equity method investments at ownership share excluding lease termination revenue(1)	$	20,944		$	18,945		$	1,150		$	1,970		$	22,094		$	20,915
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				10.6%

(1) NOI is a non-GAAP measure. See definition of NOI on page 34.

Pennsylvania Real Estate Investment Trust

Reconciliation of Net Loss (GAAP Measure) to Funds From Operations and Funds Available for Distribution (Non-GAAP Measures)

Three and Nine Months Ended September 30, 2022 and 2021

(in thousands, except per share amounts)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
FUNDS FROM OPERATIONS (1)

Net loss	$	(71,343	)	$	(38,398	)	$	(115,331	)	$	(107,758	)
Depreciation and amortization on real estate:
Consolidated properties		27,752			28,812			84,628			87,653
PREIT's share of equity method investments		2,678			3,095			8,673			9,257
(Gain) loss on sales of interests in real estate		(7,509	)		217			(9,210	)		1,191
(Gain) loss on sale of equity method investment		77			-			(8,976	)		-
(Gain) loss on sales of real estate by equity method investee		-			10			-			(1,337	)
Impairment of Assets:
Consolidated properties		42,271			262			42,271			1,564
PREIT's share of equity method investments		-			-			-			265
Funds from operations attributable to common shareholders and OP Unit holders(1)		(6,074	)		(6,002	)		2,055			(9,165	)
(Benefit) provision for employee separation expenses		(5	)		39			(6	)		279
(Gain) on hedge ineffectiveness		-			(532	)		-			(2,329	)
(Gain) on debt extinguishment, net		-			-			-			(4,587	)
Insurance recoveries, net		2			-			2			(670	)
(Gain) on sale of preferred equity interest		-			-			(3,688	)		-
Reorganization expenses		-			-			-			267
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders	$	(6,077	)	$	(6,495	)	$	(1,637	)	$	(16,205	)

(1) Funds from Operations is a Non-GAAP measures. See definition on pages 34.


FUNDS AVAILABLE FOR DISTRIBUTION(1)

Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders(1)	$	(6,077	)	$	(6,495	)	$	(1,637	)	$	(16,205	)
Adjustments:
Straight line rent		(46	)		(220	)		452			(832	)
Recurring capital expenditures		(2,133	)		(1,353	)		(3,902	)		(3,278	)
Tenant allowances		(2,744	)		(2,644	)		(5,322	)		(7,324	)
Amortization of non-cash deferred compensation		604			1,047			1,004			3,516
Capitalized leasing costs		(71	)		(36	)		(172	)		(61	)
Amortization of above- and below-market lease intangibles		(2	)		(8	)		(8	)		(38	)
Funds available for distribution to common shareholders and OP Unit holders(1)	$	(10,469	)	$	(9,709	)	$	(9,585	)	$	(24,222	)

Funds from operations attributable to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	(1.13	)	$	(1.10	)	$	0.38		$	(1.70	)
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit	$	(1.13	)	$	(1.20	)	$	(0.30	)	$	(3.00	)
Funds available for distribution to common shareholders and OP Unit holders per diluted share and OP Unit(1)	$	(1.94	)	$	(1.79	)	$	(1.78	)	$	(4.49	)


Weighted average number of shares outstanding	5,317	5,279	5,313	5,222
Weighted average effect of full conversion of OP Units	69	82	69	115
Effect of common share equivalents	-	72	-	60
Total weighted average shares outstanding, including OP Units	5,386	5,433	5,382	5,397

(1) Non-GAAP measures. See definitions on pages 34-35.

Pennsylvania Real Estate Investment Trust

Condensed Consolidated Balance Sheets

(Unaudited)


(in thousands, except per share amounts)	September 30, 2022			December 31, 2021
ASSETS:
INVESTMENTS IN REAL ESTATE, at cost:
Operating properties	$	2,980,963		$	3,156,194
Construction in progress		41,218			45,828
Land held for development		2,058			4,339
Total investments in real estate		3,024,239			3,206,361
Accumulated depreciation		(1,407,395	)		(1,405,260	)
Net investments in real estate		1,616,844			1,801,101
INVESTMENTS IN PARTNERSHIPS, at equity:		7,907			16,525
OTHER ASSETS:
Cash and cash equivalents		21,063			43,852
Tenant and other receivables		31,179			42,501
Intangible assets (net of accumulated amortization of $22,578 and $21,598 at September 30, 2022 and December 31, 2021, respectively)		9,074			10,054
Deferred costs and other assets, net		113,569			128,923
Assets held for sale		86,408			8,780
Total assets	$	1,886,044		$	2,051,736
LIABILITIES:
Mortgage loans payable, net	$	761,230		$	851,283
Term Loans, net		972,198			959,137
Revolving Facilities		26,078			54,549
Tenants’ deposits and deferred rent		11,994			10,180
Distributions in excess of partnership investments		89,702			71,570
Fair value of derivative instruments		—			8,427
Accrued expenses and other liabilities		72,876			89,331
Liabilities on assets held for sale		41,689			212
Total liabilities		1,975,767			2,044,689
COMMITMENTS AND CONTINGENCIES (Note 8)
EQUITY:
Series B Preferred Shares, $.01 par value per share; 3,450 shares issued and outstanding; liquidation preference of $100,561 and $95,791 at September 30, 2022 and December 31, 2021, respectively		35			35
Series C Preferred Shares, $.01 par value per share; 6,900 shares issued and outstanding; liquidation preference of $200,445 and $191,130 at September 30, 2022 and December 31, 2021, respectively		69			69
Series D Preferred Shares, $.01 par value per share; 5,000 shares issued and outstanding; liquidation preference of $144,337 and $137,891 at September 30, 2022 and December 31, 2021, respectively		50			50
Shares of beneficial interest, $1.00 par value per share; 13,333 shares authorized; 5,369 and 5,347 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		5,369			5,347
Capital contributed in excess of par		1,858,124			1,851,866
Accumulated other comprehensive loss		3,297			(8,830	)
Distributions in excess of net income		(1,945,988	)		(1,832,375	)
Total equity (deficit) – Pennsylvania Real Estate Investment Trust		(79,044	)		16,162
Noncontrolling interest		(10,679	)		(9,115	)
Total equity (deficit)		(89,723	)		7,047
Total liabilities and equity	$	1,886,044		$	2,051,736

Pennsylvania Real Estate Investment Trust

Assets and Liabilities - Equity Method Investments, at Ownership Share (Non-GAAP Measure)

(in thousands)


(in thousands of dollars)	September 30, 2022			December 31, 2021
ASSETS:
Investments in real estate, at cost:
Operating properties	$	378,067		$	403,799
Construction in progress		4,891			5,430
Total investments in real estate		382,958			409,229
Accumulated depreciation		(120,978	)		(120,996	)
Net investments in real estate		261,980			288,233
Cash and cash equivalents		11,339			25,191
Deferred costs and other assets, net		74,409			75,944
Total assets		347,728			389,368
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		200,211			224,744
FDP Term Loan, net		55,772			97,301
Partnership Loan		103,130			57,771
Other liabilities		70,410			64,597
Total liabilities		429,523			444,413
Net investment	$	(81,795	)	$	(55,045	)
Reconciliation to comparable GAAP balance sheet item:

The non-GAAP financial information presented above includes 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, our investments in these entities are recorded in the balance sheet caption entitled “Investment in partnerships, at equity.” In the case of deficit investment balances, such amounts are recorded in “Distributions in excess of partnership investments.”

To derive the proportionate financial information reflected in the tables above 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 40% 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 assets and liabilities of our unconsolidated partnerships, we do not control these partnerships or 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.

Pennsylvania Real Estate Investment Trust

Leasing Activity Summary – Three Months Ended September 30, 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")	Consolidated		29		85,953		6.0		$	44.62	N/A		N/A			N/A			N/A			$	7.91
	Unconsolidated(4)		2		9,069		9.0			27.57	N/A		N/A			N/A			N/A				2.02
Total Under 10k sf			31		95,022		6.3		$	42.99	N/A		N/A			N/A			N/A			$	7.11

Over 10k sf	Consolidated		1		22,568		11.0			7.53	N/A		N/A			N/A			N/A				0.65
	Unconsolidated(4)		1		11,089		10.0			27.05													8.12
Total Over 10k sf			2		33,657		10.7			13.96													2.96
Total New Leases			33		128,679		7.4		$	35.40	N/A		N/A			N/A			N/A			$	5.55

Renewal Leases
Under 10k sf	Consolidated		27		61,282		3.0		$	47.93	$	47.37	$	0.56			1.2	%		3.2	%	$	-
	Unconsolidated(4)		4		5,631		4.7		$	91.81	$	78.36		13.45			17.2	%		27.8	%		-
Total Under 10k sf			31		66,913		3.1		$	51.62	$	49.98	$	1.64			3.3	%		6.8	%	$	-

Over 10k	Consolidated		4		84,990		4.4			23.53		20.57		2.96			14.4	%		16.1	%	$	-
	Unconsolidated(4)		1		10,287		5.0			33.34		42.37		(9.03	)		(21.3	%)		(13.0	%)
Total Over 10k sf			5		95,277		4.4			24.59		22.92		1.67			7.3	%		11.3	%	$	-
Total Fixed Rent			36		162,190		3.9		$	35.75	$	34.09	$	1.66			4.9	%		8.7	%	$	-
Percentage in Lieu	Consolidated		20		84,339		1.9		$	31.47	$	40.54	$	(9.07	)		(22.4	%)	N/A			$	-
			-
Total Percentage in Lieu	Consolidated		20		84,339		1.9			31.47		40.54		(9.07	)		(22.4	%)	N/A				-
Total Renewal Leases			56		246,529		3.2	`	$	34.28	$	36.29	$	(2.01	)		(5.5	%)
Total Non Anchor			89		375,208		4.7		$	34.66

Anchor
New Leases			-		-		-		$	-	N/A		N/A			N/A			N/A			$	-
Renewal Leases	Consolidated		1		99,029		5.0		$	1.20	$	3.96	$	(2.76	)		(69.7	%)					-
Total			1		99,029		5.0		$	1.20

(1) Initial gross rent renewal spread is computed by comparing the initial rent psf in the new lease to the final rent psf amount in the expiring lease. For purposes of this computation, the rent amount includes minimum rent, 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 psf over the new lease term to the final rent psf 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) Tenant improvements and certain other leasing costs are presented as annualized amounts per square foot and are spread uniformly over the initial lease term.

(4) As of September 30, 2022, we own a 40% 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” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 for further details on our ownership interests in our unconsolidated properties. Our unconsolidated properties include 8 leases and 36,076 square feet of GLA with respect to our unconsolidated partnerships.

Pennsylvania Real Estate Investment Trust

Leasing Activity Summary – Nine Months Ended September 30, 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")	Consolidated		110		286,468		5.5	$	37.58	N/A		N/A			N/A			N/A			$	6.63
	Unconsolidated(4)		5		16,513		6.7		31.41	N/A		N/A			N/A			N/A				1.49
Total Under 10k sf			115		302,981		5.6	$	37.24	N/A											$	6.29

Over 10k sf	Consolidated		5		97,264		11.3		14.79	N/A		N/A			N/A			N/A				6.40
	Unconsolidated(4)		1		11,089		10.0		27.05	N/A		N/A			N/A			N/A				8.12
			6		108,353		11.2		16.04													6.56
Total New Leases			121		411,334		7.0	$	31.66	N/A		N/A			N/A			N/A			$	6.40

Renewal Leases
Under 10k sf	Consolidated		81		186,712		3.8	$	56.14	$	56.27	$	(0.13	)		(0.2	%)		5.0	%	$	0.78
	Unconsolidated(4)		13		31,522		2.9	$	71.79	$	69.83		1.96			2.8	%		6.1	%		-
Total Under 10k sf			94		218,234		3.6	$	58.40	$	58.23	$	0.17			0.3	%		5.2	%	$	0.69

Over 10k sf	Consolidated		10		242,156		3.5		19.83		19.31	$	0.52			2.7	%		3.1	%		1.17
	Unconsolidated(4)		1		10,287		5.0		33.34		42.37		(9.03	)		(21.3	%)		(13.0	%)
Total Over 10k sf			11		252,443		3.6		20.38		20.25		0.13			0.6	%		2.0	%	$	1.10
Total Fixed Rent			105		470,677		3.6	$	38.01	$	37.86	$	0.15			0.4	%		4.2	%	$	0.91
Percentage in Lieu	Consolidated		55		179,999		2.2		31.73		36.10	$	(4.37	)		(12.1	%)					0.45

Total Percentage in Lieu	Consolidated		55		179,999		2.2	$	31.73	$	36.10	$	(4.37	)		(12.1	%)				$	0.45
Total Renewal Leases (4)	Unconsolidated(4)		160		650,676		3.2	$	36.27	$	37.37	$	(1.10	)		(2.9	%)				$	0.82
Total Non Anchor			281		1,062,010		4.7	$	34.49

Anchor
New Leases			-		-		-	$	-	N/A		N/A			N/A			N/A			$	-
Renewal Leases	Consolidated		3		546,929		7.3		4.36		4.86		(0.50	)		(10.3	%)					-
Total			3		546,929		7.3	$	4.36

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

(4) During the nine months ended September 30, 2022, we owned 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” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 for further details on our ownership interests in our unconsolidated properties. Our unconsolidated properties include 20 leases and 69,411 square feet of GLA with respect to our unconsolidated partnerships.

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages


	September 30, 2022																				September 30, 2021
									Actual Occupancy						Leased Occupancy											Actual Occupancy
	% Rolling 12 Mo. NOI (5)			Average Comp Sales (1)		Average Gross Rent(2)(3)		Occupancy Cost(4)	Total			Non- Anchor			Total			Non- Anchor			Average Comp Sales (1)		Average Gross Rent(2)(3)		Occupancy Cost(4)	Total			Non- Anchor
Malls		93.2	%	$	592	$	55.70	11.1%		94.4	%		91.4	%		95.6	%		93.2	%	$	536	$	55.32	12.2%		89.6	%		88.3	%
Non-Core Malls (4)		0.9	%	$	289	$	34.06	10.7%		51.7	%		49.2	%		51.7	%		49.2	%	$	325	$	29.93	14.6%		77.1	%		49.8	%
Malls Total		94.1	%	$	589	$	55.42	11.1%		91.8	%		89.6	%		93.0	%		91.4	%	$	528	$	54.73	12.3%		88.8	%		86.6	%
Other Retail Properties		6.2	%	N/A		$	19.21	N/A		98.6	%		98.5	%		99.4	%		99.3	%	N/A		$	19.02	N/A		92.6	%		91.7	%
Total Retail Properties		6.2	%	$	589	$	47.16	11.1%		92.4	%		90.6	%		93.5	%		92.2	%	$	528	$	46.88	12.3%		89.1	%		87.2	%
Sold Properties		0.0	%	N/A		$	0.00	N/A								0.0	%		0.0	%	N/A		$	43.47	N/A		74.9	%		74.9	%
Other Properties		-0.3	%	N/A		$	0.00	N/A								0.0	%		0.0	%	N/A				N/A	N/A			N/A
Total Portfolio		100.0	%	$	589	$	47.16	11.1%		92.4	%		90.6	%		93.5	%		92.2	%	$	528	$	46.68	12.3%		88.8	%		86.7	%

(1) Rolling 12 month average comp sales are not reported for 2021 due to COVID-19 related mall closures and operational limitations impacting 2020 activity. Comp sales for 2022 are now included and are compared to the same quarter 2019 sales, as set forth in the columns for 2021. Historically, average comp sales have been based on reported sales by all comparable non-anchor tenants that lease individual spaces of less than 10,000 square feet and have occupied the space for at least 24 months.

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

(3) Average gross rent for mall tenants greater than 10,000 sf was $21.71 per square foot as of September 30, 2022 and $22.06 per square foot as of September 30, 2021.

(4) Beginning in the third quarter of 2021, Fashion District Philadelphia is classified as a Core Mall, compared to prior quarters when it was classified as a Non-Core Mall.

(5) NOI is a non-GAAP measure. See definition of NOI on page 34.

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot


	September 30, 2022											September 30, 2021								Change
	% of Mall NOI (3)			Avg Comp Sales (2)		Total Occupancy %			Non- Anchor Occupancy %			Avg Comp Sales (1)		Total Occupancy %			Non-Anchor Occupancy %			Avg Comp Sales (1)			Total Occupancy %			Non- Anchor Occupancy %
Top 6 Malls
Cherry Hill Mall		10.9	%	$	920		94.9	%		93.9	%	$	712		94.4	%		93.2	%		29.2	%		0.5	%		0.7	%
Willow Grove Park		5.7	%	752			95.7	%		92.6	%	780			97.7	%		96.1	%		-3.6	%		(2.0	%)		(3.5	%)
Lehigh Valley Mall		6.2	%	646			88.6	%		81.6	%	592			89.1	%		82.4	%		9.1	%		(0.5	%)		(0.8	%)
Woodland Mall		7.1	%	642			96.6	%		96.0	%	615			84.8	%		82.1	%		4.4	%		11.8	%		13.9	%
Dartmouth Mall		4.5	%	582			93.2	%		90.4	%	539			96.2	%		94.3	%		8.0	%		(3.0	%)		(3.9	%)
Mall at Prince George's		8.3	%	573			99.6	%		99.3	%	558			83.3	%		98.7	%		2.7	%		16.3	%		0.6	%
		42.7	%	$	710		94.5	%		92.1	%	$	651		90.3	%		90.4	%		9.1	%		4.2	%		1.7	%

Malls 7-12
Springfield Town Center		10.1	%		573		90.1	%		86.7	%		554		90.7	%		87.5	%		3.4	%		(0.6	%)		(0.8	%)
Capital City Mall		5.7	%		531		98.7	%		98.0	%		457		97.3	%		96.0	%		16.2	%		1.4	%		2.0	%
Jacksonville Mall		4.5	%		529		99.1	%		98.3	%		507		99.9	%		99.8	%		4.3	%		(0.8	%)		(1.5	%)
Viewmont Mall		4.5	%		516		98.8	%		97.5	%		442		96.8	%		93.3	%		16.7	%		2.0	%		4.2	%
Patrick Henry Mall		5.0	%		506		94.4	%		91.9	%		445		95.3	%		93.1	%		13.7	%		(0.9	%)		(1.2	%)
Magnolia Mall		3.1	%		505		99.1	%		98.5	%		476		80.1	%		95.9	%		6.1	%		19.0	%		2.6	%
		32.9	%	$	533		95.9	%		93.5	%	$	487		92.6	%		92.9	%		9.4	%		3.3	%		0.6	%

Malls 13-19
Valley Mall		4.9	%		494		98.7	%		97.1	%		425		97.5	%		94.4	%		16.2	%		1.2	%		2.7	%
Moorestown Mall		3.1	%		455		96.4	%		93.6	%		413		79.3	%		92.0	%		10.2	%		17.1	%		1.6	%
Springfield Mall		1.2	%		432		95.4	%		95.4	%		412		88.4	%		88.4	%		4.9	%		7.0	%		7.0	%
Francis Scott Key Mall		3.6	%		425		96.8	%		94.9	%		378		92.2	%		87.7	%		12.4	%		4.6	%		7.2	%
Cumberland Mall (4)		2.8	%		424		96.2	%		93.9	%		396		90.5	%		84.4	%		7.1	%		5.7	%		9.5	%
Plymouth Meeting Mall		4.3	%		394		90.9	%		86.6	%		342		83.2	%		75.3	%		15.2	%		7.7	%		11.3	%
Fashion District Philadelphia		3.6	%	N/A			81.7	%		76.8	%	N/A			78.4	%		72.6	%	N/A				3.3	%		4.2	%
		23.5	%	$	440		95.6	%		92.8	%	$	396		86.6	%		83.0	%		11.1	%		9.0	%		9.8	%

All Core Malls		99.1	%	$	592		94.4	%		91.4	%	$	536		89.6	%		88.3	%		10.4	%		4.8	%		3.1	%

Non-Core Malls
Exton Square Mall		0.9	%	289			51.7	%		49.2	%		325		77.1	%		49.8	%		-11.1	%		(25.4	%)		(0.6	%)
All Non-Core Malls		0.9	%	$	289		51.7	%		49.2	%	$	325		77.1	%		49.8	%		-11.1	%		-25.4	%		-0.6	%

All Malls		100.0	%	$	589		91.8	%		89.6	%	$	528		88.8	%		86.6	%		11.6	%		3.0	%		3.0	%

(2) Beginning in the third quarter of 2021, Fashion District Philadelphia is classified as a Core Mall, compared to prior quarters when it was classified as a Non-Core Mall.

(3) NOI is a non-GAAP measure. See definition of NOI on page 34.

(4) Cumberland Mall is classified as an asset held for sale.

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants

September 30, 2022


Tenant	Brands	Locations at Consolidated Properties		Locations at Unconsolidated Properties		Total Number of Locations		Percentage of Annualized Gross Rent(1)
Foot Locker, Inc.	Champs, Foot Locker, Footaction, House of Hoops by Foot Locker, Kids Foot Locker	33		6		39			4.1	%
Signet Jewelers Limited	Kay Jewelers, Piercing Pagoda, Piercing Pagoda Plus, Totally Pagoda, Zales Jewelers, Banter by Piercing Pagoda	44		9		53			3.1	%
Dick's Sporting Goods, Inc.	Dick's Sporting Goods, Field & Stream	10		1		11			2.8	%
American Eagle Outfitters, Inc.	Aerie, American Eagle Outfitters, Offline	16		4		20			2.8	%
Victoria's Secret & Co.	Victoria's Secret, Pink	14		3		17			2.7	%
Dave & Buster's, Inc.	Dave & Buster's	3			1	4			1.8	%
Sycamore Partners	Hot Topic, Talbots, Torrid, AnnTaylor, Loft, Belk	34		7		41			1.8	%
Macy's	Bloomingdale's, Macy's	12		2		14			1.8	%
Express, Inc	Express, Express Factory Outlet, Express Men	10		3		13			1.7	%
Cineworld Group	Regal Cinemas	4			-	4			1.7	%
Genesco Inc.	Johnston & Murphy, Journeys, Journeys Kidz, Underground by Journeys	22		5		27			1.7	%
Gap, Inc.	Banana Republic, Gap/Gap Kids, Old Navy	10			5	15			1.6	%
Hennes & Mauritz L.P.	H & M	12		1		13			1.5	%
JD Sports Fashion PLC	DTLR, Finish Line, Villa	11		2		13			1.5	%
Authentic Brands Group LLC	Aeropostale, Forever 21, Lucky Brand Jeans	19		5		24			1.4	%
Bath & Body Works, Inc.	Bath & Body Works	17		3		20			1.4	%
The TJX Companies, Inc.	HomeGoods, HomeSense, Marshalls, Sierra Trading Post, TJ Maxx		8		2		10		1.3	%
Darden Concepts, Inc.	Bahama Breeze, Capital Grille, Olive Garden, Seasons 52, Yard House	7		0		7			1.2	%
Luxottica Group S.p.A.	Lenscrafters, Pearle Vision, Sunglass Hut	21			6	27			1.2	%
AMC Entertainment Holdings, Inc.	AMC	3		1		4			1.1	%
Total Top 20 Tenants		310		66		376			38.2	%
Total Leases			1,361	298			1,659		100.0	%

(1)

Includes our share of tenant gross rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments as of September 30, 2022.

Pennsylvania Real Estate Investment Trust

Lease Expirations as of September 30, 2022

(dollars in thousands except per square foot (“psf”) amounts)


Non-Anchors
			Gross Leasable Area ("GLA")					Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA (1)		Percent of Total			Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year (2)		Percent of PREIT’s Total			Average Expiring Gross Rent psf
2022 and Prior		150		297,327		3.6	%		19,843		17,122		6.2	%		66.73
2023		284		1,350,686		16.4	%		44,498		39,095		14.1	%		32.95
2024		288		996,249		12.2	%		44,643		39,605		14.3	%		44.81
2025		221		956,749		11.7	%		41,486		38,211		13.8	%		43.36
2026		132		735,098		9.0	%		29,607		26,550		9.6	%		40.28
2027		140		905,263		11.1	%		31,655		29,392		10.6	%		34.97
2028		89		671,304		8.2	%		25,362		23,493		8.5	%		37.78
2029		73		520,067		6.3	%		21,177		17,304		6.2	%		40.72
2030		64		476,812		5.8	%		20,972		17,881		6.4	%		43.98
2031		40		405,504		5.0	%		12,325		10,339		3.7	%		30.40
Thereafter		65		875,434		10.7	%		22,972		18,277		6.6	%		26.24
Total/Average		1,546		8,190,493		100.0	%	$	314,540	$	277,269		100.0	%	$	38.40


Anchors
			Gross Leasable Area ("GLA")					Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA (1)		Percent of Total			Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year (2)		Percent of PREIT’s Total			Average Expiring Gross Rent psf
2022 and prior		2		376,694		7.9	%		710		355		1.3	%		1.88
2023		3		234,237		4.9	%		942		942		3.6	%		4.02
2024		4		485,531		10.2	%		3,265		3,265		12.4	%		6.73
2025		8		929,729		19.5	%		2,045		2,045		7.8	%		2.20
2026		6		470,638		9.8	%		3,910		2,646		10.0	%		8.31
2027		2		275,250		5.8	%		1,743		1,743		6.6	%		6.33
2028		10		1,196,137		24.9	%		7,184		7,184		27.3	%		6.01
2029		1		65,155		1.4	%		2,210		2,210		8.4	%		33.92
2030		2		85,718		1.8	%		1,522		1,522		5.8	%		17.75
2031		2		166,523		3.5	%		932		932		3.5	%		5.60
Thereafter		4		493,572		10.3	%		3,513		3,513		13.3	%		7.12
Total/Average		44		4,779,184		100.0	%	$	27,976	$	26,357		100.0	%	$	5.85

(1) Does not include tenants occupying space under license agreements with initial terms of less than one year.

(2) Includes our share of tenant rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments.

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2022


		Landlord Owned Anchors/ Large Format Non Anchor				Anchor Stores Not Owned			Non-anchor occupied GLA
Properties	Location	Tenant	Expiration Year	GLA		Tenant	GLA		Large Format		Small Shop		Vacant		Total GLA

Core Malls
Capital City Mall	Camp Hill, PA	JCPenney	2025		102,825	Macy's		120,000		104,806		177,885		6,759		624,254
		Dick's Sporting Goods	2028		61,677
		Sportsman's Warehouse	2031							50,302
Cherry Hill Mall	Cherry Hill, NJ	Nordstrom	2025		138,000	JCPenney		174,285		243,628		408,154		42,642		1,311,309
						Macy's		304,600
Cumberland Mall (3)	Vineland, NJ	The Home Depot	2024		132,013	BJ's Wholesale Club		117,889		132,298		154,642		25,540		952,012
		Dick's Sporting Goods	2028		50,000	Boscov's		155,341
		Regal Cinemas	2026							44,445
		Power Warehouse	2023		116,934
		HomeGoods	2033							22,910
Dartmouth Mall	Dartmouth, MA	JCPenney	2025		100,020	Macy's		140,000		96,482		149,780		33,345		632,513
		Burlington	2030		43,835
		AMC Theaters	2026							44,988
		Aldi	2031							24,063
Fashion District Philadelphia	Philadelphia, PA	Burlington	2032		85,162					179,365		125,233		155,373		850,851
		AMC	2034							36,535
		Round 1	2029							58,080
		City Winery	2038							29,762
		H&M	2030							38,694
		Shopper's World	2026		95,159
		Primark	2032							47,488
Francis Scott Key Mall	Frederick, MD	JCPenney	2025		101,293	Macy's		139,333		139,863		177,277		19,697		748,496
		Sears	2023		120,883
		Dick's Sporting Goods	2025							50,150
Jacksonville Mall	Jacksonville, NC	Belk	2028		72,510					123,079		123,357		4,366		492,917
		JCPenney	2025		51,812
		Sears	2026		117,793
Lehigh Valley Mall	Allentown, PA	Boscov's	2022		164,694	JCPenney		207,292		185,631		313,361		112,674		1,195,652
		Macy's	2022		212,000
Magnolia Mall	Florence, SC	Belk	2028		115,793					96,175		136,959		4,965		580,742
		Best Buy	2023		32,054
		Tilt Studio	2031		104,107
		Dick's Sporting Goods	2026							45,000
		Burlington	2028							45,689
Moorestown Mall	Moorestown, NJ	Boscov's	2028		202,765	Cooper Hospital (2)		182,153		110,814		196,569		26,869		926,699
		Regal Cinemas	2030							57,843
		HomeSense	2028		28,486
		Turn 7 Liquidations	2023		121,200


		Landlord Owned Anchors/ Large Format Non Anchor				Anchor Stores Not Owned			Non-anchor occupied GLA
Properties	Location	Tenant	Expiration Year	GLA		Tenant	GLA		Large Format		Small Shop		Vacant		Total GLA

Patrick Henry Mall	Newport News, VA	Dick's Sporting Goods	2027		50,250	Dillard's		144,157		60,095		214,031		24,176		717,921
		JCPenney	2025		85,212	Macy's		140,000
Plymouth Meeting Mall	Plymouth Meeting, PA	Boscov's	2028		188,429					188,024		212,319		83,225		917,844
		Whole Foods	2029		65,155
		Burlington	2030		41,883
		Dick's Sporting Goods	2031							57,588
		AMC Theaters	2027							48,000
		LEGOLAND Discovery Center	2032							33,221
Springfield Mall	Springfield, PA					Macy's		192,000		20,577		191,912		10,263		610,651
						Target		195,899
Springfield Town Center	Springfield, VA	Macy's	2035		252,245	JCPenney		209,144		181,785		315,644		97,710		1,374,155
						Target		180,841
		Dick's Sporting Goods	2025							53,891
		Nordstrom Rack	2025							33,107
		Regal Cinemas	2031							49,788
The Mall at Prince George's	Hyattsville, MD	Macy's	2028		195,655					268,818		243,158		3,391		846,208
		Target	2024		135,186
Valley Mall	Hagerstown, MD	JCPenney	2025		157,455					95,023		209,391		10,704		828,983
		Belk	2028		123,094
		Regal Cinemas	2033							53,059
		Dick's Sporting Goods	2031		62,416
		Onelife Fitness	2033		70,000
		Tilt Studio	2028		47,841
Viewmont Mall	Scranton, PA	JCPenney	2025		193,112	Macy's		139,801		76,053		161,003		6,680		689,226
		Dick's Sporting Goods/Field & Stream	2028		90,000
		HomeGoods	2027							22,577
Willow Grove Park	Willow Grove, PA	Macy's	2027		225,000	Bloomingdale's		237,537		78,219		252,919		26,557		1,036,148
		Nordstrom Rack	2024		40,332	Sears(1)		175,584
Woodland Mall	Grand Rapids, MI	Von Maur	2119		86,165	JCPenney		254,905		115,714		302,056		19,174		982,252
						Macy's		157,316
		Phoenix Theatres	2037							46,922
Total Core Malls					4,480,445			3,568,077		3,490,551		4,065,650		714,110		16,318,833


		Landlord Owned Anchors/ Large Format Non Anchor				Anchor Stores Not Owned			Non-anchor occupied GLA
Properties	Location	Tenant	Expiration Year	GLA		Tenant	GLA		Large Format		Small Shop		Vacant		Total GLA
Other Malls and Retail Properties
Exton Square Mall	Exton, PA	Boscov's	2024		178,000	Macy's		181,200		48,037		133,512		391,025		990,145
		Round 1	2026		58,371
Metroplex Shopping Center	Plymouth Meeting, PA	Giant Food Store	2026		67,185	Lowe's		163,215		328,809		49,012		7,280		777,695
						Target		137,514
		Saks OFF 5th	2026							24,680
The Court at Oxford Valley	Fairless Hills, PA	Best Buy	2026		59,620	BJ's Wholesale Club		116,872		293,144		45,152		8,989		703,909
						The Home Depot		130,751
		Dick's Sporting Goods	2026							49,381
Red Rose Commons	Lancaster, PA					The Home Depot		134,558		248,086		15,207		-		462,883
						Weis Market		65,032
Total Other Malls and Retail Properties					363,176			929,142		992,137		242,883		407,294		2,934,632
Total Portfolio					4,843,621			4,497,219		4,482,688		4,308,533		1,121,404		19,253,465

 
(1) Approximately 78,000 square feet of this space has been subleased to Primark.
(2) Former Sears was acquired by Cooper Hospital.  The site is under development and currently not operating.
(3)  Cumberland Mall is classified as an asset held for sale.
 

Pennsylvania Real Estate Investment Trust

Investment in Real Estate - Consolidated Properties

(in thousands)


	September 30, 2022
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Debt(1)
Core Malls
Capital City Mall	$	139,148	$	-	$	65,349	$	73,799	$	-
Cherry Hill Mall		487,575		-		302,559		185,016		246,515
Dartmouth Mall		92,656		110		53,956		38,810		54,141
Francis Scott Key Mall		97,039		-		50,764		46,275		54,039
Jacksonville Mall		95,348		-		48,954		46,394		-
Magnolia Mall		108,028		-		59,635		48,393		-
Moorestown Mall		185,413		-		94,957		90,456		-
Patrick Henry Mall		157,968		-		84,954		73,014		83,598
Plymouth Meeting Mall		186,514		-		103,791		82,723		-
The Mall at Prince George's		138,080		218		79,231		59,067		-
Springfield Town Center		497,996		1,946		106,165		393,777		-
Valley Mall		150,374		1,229		63,530		88,073		-
Viewmont Mall		122,433		-		62,550		59,883		67,185
Willow Grove Park		233,351		37,609		125,765		145,195		146,222
Woodland Mall		288,975		106		105,169		183,912		110,650
Total Core Malls		2,980,898		41,218		1,407,329		1,614,787		762,350

Total Malls	$	2,980,898	$	41,218	$	1,407,329	$	1,614,787	$	762,350

Other Properties
Land held for development		2,058		-		-		2,058		-
Total Investment in Real Estate	$	2,982,956	$	41,218	$	1,407,329	$	1,616,845	$	762,350

Assets Held For Sale
Cumberland Mall		49,770		-		-		49,770		38,169
Exton Square Mall		29,067		-		-		29,067		-
The Mall at Prince George's		5,091		-		-		5,091		-
Moorestown Mall		447		-		-		447		-
Woodland Mall		1,054		-		-		1,054		-
Valley View Former Macy's Box		979		-		-		979		-
Total held for sale	$	86,408	$	-	$	-	$	86,408	$	38,169

(1)

Refer to page 29-32 for further debt information regarding consolidated properties.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate – Equity Method Investments at Ownership Share

(in thousands)


	September 30, 2022
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation			Net Real Estate		Debt(1)
Unconsolidated Malls
Fashion District Philadelphia	$	166,151	$	630	$	(8,304	)	$	158,477	$	115,306
Lehigh Valley Mall		57,192		686		(32,936	)		24,942		91,173
Springfield Mall		58,744		60		(28,217	)		30,587		28,475
Total Unconsolidated Malls	$	282,087	$	1,376	$	(69,457	)	$	214,006	$	234,954

Unconsolidated Other Retail Properties
Metroplex Shopping Center		46,625		2,749		(28,779	)		20,595		40,000
The Court at Oxford Valley		28,411		-		(14,216	)		14,196		16,615
Red Rose Commons		14,598		-		(6,101	)		8,497		91,173
Total Unconsolidated Other Retail Properties	$	89,634	$	2,749	$	(49,096	)	$	43,288	$	147,788
Unconsolidated Property Under Development
Pavilion at Market East		6,346		765		(2,423	)		4,688	$	2,935
Total Investment in Real Estate	$	378,067	$	4,890	$	(120,976	)	$	261,982	$	385,677

(1)

Refer to pages 29-31 for further debt information regarding equity method investments at ownership share.

Pennsylvania Real Estate Investment Trust

Capital Expenditures

Three and Nine Months Ended September 30, 2022

(in thousands)


	Three Months Ended September 30, 2022						Nine Months Ended September 30, 2022
	Consolidated		PREIT's Share of Equity Method Investments		Total		Consolidated		PREIT's Share of Equity Method Investments		Total
Redevelopment projects with incremental GLA and/or anchor replacement (1)	$	1,209	$	903	$	2,112	$	3,076	$	1,191	$	4,267
Tenant allowances		2,484		260		2,744		4,912		410		5,322
Recurring capital expenditures:
CAM expenditures		1,577		189		1,766		2,864		349		3,213
Non-CAM expenditures		365		2		367		685		4		689
Total recurring capital expenditures		1,942		191		2,133		3,549		353		3,902
Total	$	5,635	$	1,354	$	6,989	$	11,537	$	1,954	$	13,491

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

Pennsylvania Real Estate Investment Trust

Debt Analysis as of September 30, 2022

(in thousands)


	Outstanding Debt
	Fixed Rate (1)			% of Total Indebtedness			Variable Rate			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable (2)	$	668,645			31.0	%	$	131,874			6.1	%	$	800,519			37.1	%
Unconsolidated mortgage loans payable (3)		198,287			9.2	%		2,935			0.1	%		201,222			9.3	%
Consolidated Term Loans (4)		300,000			13.9	%		673,387			31.2	%		973,387			45.1	%
Unconsolidated Term Loans (5)		103,130			4.7	%		55,772			2.6	%		158,902			7.3	%
2020 Revolving Facility		-			0.0	%		26,078			1.2	%		26,078			1.2	%
Total Outstanding Debt	$	1,270,062			58.8	%	$	890,046			41.2	%	$	2,160,108			100.0	%
Average Stated Interest Rate		6.21	%					9.58	%					7.60	%

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

(2) Excludes deferred financing costs of $1,119.

(3) Reflects our share of mortgage debt of equity method investees. Excludes our share of deferred financing costs of $499.

(4) Excludes deferred financing costs of $1,190.

(5) Reflects our share of Term Loan debt of equity method investee.


		Average Debt Balance
		Mortgage Debt			Revolving Facility		Term Loans			Total
Beginning Balance	7/1/2022	$	1,012,338		$	16,078	$	1,128,680		$	2,157,096
Mortgage loan amortization, including our share of debt of equity method investees			(10,597	)		-		-			(10,597	)
First Lien Revolver Borrowing			-			10,000		-			10,000
First Lien Term Loan Paydown			-			-		(14,502	)		(14,502	)
2018 FDP Term Loan Paydown			-			-		(41,530	)		(41,530	)
2020 FDP Partnership Loan Borrowing			-			-		43,596			43,596
Second Lien Term Loan PIK Interest			-			-		16,045			16,045
Ending Balance	9/30/2022	$	1,001,741		$	26,078	$	1,132,289		$	2,160,108
Weighted Average Balance		$	1,009,020		$	19,121	$	1,131,401		$	2,159,542

Pennsylvania Real Estate Investment Trust

Debt Analysis as of September 30, 2022 (continued)

(in thousands)


Debt Maturities(1)
Year	Scheduled Amortization		Deferred Financing Cost Amortization - Mortgages			Mortgage Balance at Initial Maturity Date			2020 Revolving Facility		Term Loans		Deferred Financing Cost Amortization - Term Loans			Total Debt
2022	$	2,982	$	(1,140	)	$	395,333	(2)	$	26,078	$	973,387	$	(1,190	)	$	1,395,448
2023		10,596		(522	)		89,579			-		55,772		-			155,425
2024		10,242		(228	)		121,224			-		-		-			131,238
2025		9,031		(228	)		237,644			-		-		-			246,447
2026		-		-			-			-		-		-			-
Thereafter		13,794		-			111,318			-		103,130		-			228,242
	$	46,645	$	(2,118	)	$	955,098		$	26,078	$	1,132,289	$	(1,190	)	$	2,156,800

(1) The weighted average period to total debt maturity is 1.12 years, excluding extension options. Includes 100% of revolver, term loan and mortgage loan debt from consolidated properties and our share of term loan and mortgage loan debt of equity method investees.

(2) Includes Cherry Hill Mall mortgage of $246.5 million for which, subsequent to the end of the quarter ended September 30, 2022, the maturity was extended through February 1, 2023.


Weighted Average Mortgage Interest Rates
Year	Balance (1)			Interest Rate
2022	$	395,333	(2)		4.75	%
2023		91,600			4.43	%
2024		121,224			7.02	%
2025		258,295			4.10	%
2026		-			0.00	%
Thereafter		135,289			3.79	%
Total	$	1,001,741			4.70	%

(1) Includes our share of debt of equity method investees.

(2) Includes Cherry Hill Mall mortgage of $246.5 million for which, subsequent to the end of the quarter ended September 30, 2022, the maturity was extended through February 1, 2023.

Pennsylvania Real Estate Investment Trust

Debt Schedule as of September 30, 2022

(in thousands)


	Debt			Interest Rate			Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Fixed Rate Mortgage Loans
Cumberland Mall (1)	$	38,169			4.40	%	$	3,433	$	38,157	August 2022	August 2022
Cherry Hill Mall		246,515			3.90	%		16,980		251,120	September 2022	February 2023
Dartmouth Mall		54,141			3.97	%		3,825		53,299	April 2023	April 2023
Metroplex Shopping Center (2)		34,524			5.00	%		2,818		33,502	October 2023	October 2023
Francis Scott Key Mall		40,000			7.19	%		2,876		40,000	June 2024	June 2024
Viewmont Mall		60,000			7.19	%		4,314		60,000	June 2024	June 2024
Patrick Henry Mall		83,598			4.35	%		5,748		77,591	July 2025	July 2025
Springfield Mall (2)		28,475			4.45	%		1,964		26,299	October 2025	October 2025
Willow Grove Park		146,222			3.88	%		9,599		133,754	October 2025	October 2025
Lehigh Valley Mall (2)		91,173			4.06	%		5,768		79,789	November 2027	November 2027
Red Rose Commons (2)		16,615			3.28	%		978		13,183	July 2031	July 2031
The Court at Oxford Valley (2)		27,500			3.20	%		2,058		18,343	July 2031	July 2031

Total Fixed Rate Mortgage Loans	$	866,932			4.39	%	$	60,361	$	825,037

Variable Rate Mortgage Loans
Woodland Mall		110,650			6.75	%		11,669		111,700	December 2022	December 2022
Pavilion East Associates (2)		2,935			6.31	%		285		2,868	May 2023	May 2023
Francis Scott Key Mall		14,039			6.23	%		874		14,039	June 2024	June 2024
Viewmont Mall		7,185			6.23	%		448		7,185	June 2024	June 2024

Total Variable Rate Mortgage Loans	$	134,809			6.66	%	$	13,276	$	135,792
Total Mortgage Loans	$	1,001,741			4.70	%	$	73,637	$	960,829

Consolidated Mortgage Loans	$	800,519			4.84	%	$	59,766	$	786,846
Consolidated Deferred Financing Fees		(1,119	)	N/A			N/A		N/A
Unconsolidated Mortgage Loans		201,222			4.13	%		13,871		173,983
Unconsolidated Deferred Financing Fees		(999	)	N/A			N/A		N/A
First Lien Term Loan (3)		345,140			8.42	%		29,059		345,140	December 2022	December 2023
Second Lien Term Loan		628,247			10.76	%		67,577		628,247	December 2022	December 2023
2018 FDP Term Loan		55,772			6.06	%		3,382		55,772	January 2023	January 2024
Term Loan Deferred Financing Fees		(1,190	)	N/A			N/A		N/A
First Lien Revolver		26,078			6.06	%		1,581		26,078	December 2022	December 2023
2020 FDP Partnership Loan		103,130			15.00	%		15,469		103,130	December 2027	December 2027
Total	$	2,156,800			7.60	%	$	190,705	$	2,119,196
Amortization of Deferred Financing Fees		-			0.20	%	—		—
Effective Interest Rate	$	2,156,800			7.80	%	$	190,705	$	2,119,196

(1) Mortgage balance, including accrued interest, was paid off in full in October 2022 upon the sale of the property.

(2) Includes our share of debt of equity method investees, based on our ownership percentage.

(3) All or a portion of the loan has been effectively swapped to the fixed interest rate presented.

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios


	September 30, 2022
Debt Yield Ratio (1)
Maintain a minimum Debt Yield Ratio (Senior) of 11.35% from and after June 30, 2021	20.22%
Maintain a minimum Debt Yield Ratio (Corporate) of (a) 6.50% from June 30, 2021 through and including September 30, 2021 and (b) 7.25% from and after October 1, 2021	8.72%
Liquidity (1)
Maintain minimum liquidity of at least $25.0 million, to be comprised of unrestricted cash held in certain deposit accounts subject to control agreements	$	113.2

(1)

The First Lien Credit Agreement and Second Lien Credit Agreement (collectively, the "Credit Agreements"), contain identical affirmative and negative covenants customarily found in such agreements, including requirements that the Company, on a consolidated basis, maintain certain financial ratios and liquidity. All capitalized terms used on this page have the meanings ascribed to such terms in the Credit Agreements. In addition to the ratios set forth herein, there are several other requirements set forth in the covenants under the Credit Agreements with which the Company must comply. As of September 30, 2022, we were in compliance with terms under the Credit Agreements, however, a material decline in future operating results could affect our ability to comply with the financial covenants, including additional covenants that came into effect starting on September 30, 2021.

Pennsylvania Real Estate Investment Trust

Forward Looking Statements

FORWARD LOOKING STATEMENTS

This Quarterly Supplemental and Operating Information for the quarter ended September 30, 2022 contains 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;

•

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 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 satisfy our obligations or refinance our outstanding debt at or priort to maturity, particularly in light of increasing interest rates, 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;

•

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; 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.

Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations (“FFO”), which is a non-GAAP measure commonly used by REITs, as net income (computed in accordance with GAAP) excluding (i) depreciation and amortization of real estate, (ii) gains and losses on sales of certain real estate assets, (iii) gains and losses from change in control and (iv) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. We compute FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than we do. NAREIT’s established guidance provides that excluding impairment write downs of depreciable real estate is consistent with the NAREIT definition.

FFO is a commonly used measure of operating performance and profitability among REITs. We use FFO and FFO per diluted share and unit of limited partnership interest in our operating partnership (“OP Unit”) in measuring our performance against our peers and as one of the performance measures for determining incentive compensation amounts earned under certain of our performance-based executive compensation programs.

FFO does not include gains and losses on sales of operating real estate assets or impairment write downs of depreciable real estate (including development land parcels), which are included in the determination of net loss in accordance with GAAP. Accordingly, FFO is not a comprehensive measure of our operating cash flows. In addition, since FFO does not include depreciation on real estate assets, FFO may not be a useful performance measure when comparing our operating performance to that of other non-real estate commercial enterprises. We compensate for these limitations by using FFO in conjunction with other GAAP financial performance measures, such as net loss and net cash used in operating activities, and other non-GAAP financial performance measures, such as NOI. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net loss (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that net loss is the most directly comparable GAAP measurement to FFO.

When applicable, we also present FFO, as adjusted, and FFO per diluted share and OP Unit, as adjusted, which are non-GAAP measures, for the three and nine months ended September 30, 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/loss on hedge ineffectiveness, gain on sale of preferred equity interest 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 income that do not relate to or are not indicative of operating performance, such as gains on sales of operating real estate and depreciation and amortization of real estate, among others. We believe that Funds From Operations, as adjusted, is helpful to management and investors as a measure of operating performance because it adjusts FFO to exclude items that management does not believe are indicative of our operating performance, such as provision for employee separation expense and accelerated amortization of financing costs.

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, other expenses (which includes provision for employee separation expense and project costs), interest expense, reorganization expenses, impairment of assets, equity in loss/income of partnerships, gain on extinguishment of debt, gain/loss on sales of real estate and gain/loss on sale of preferred equity interest.

Same Store NOI

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.

Funds Available for Distribution (FAD)

FAD is a measure of a real estate company’s cash flows generated by operations and capacity to pay dividends. The Company calculates FAD by starting with FFO as adjusted and subtracting (1) straight-line rent, (2) normalized recurring capital expenditures that are capitalized but necessary to maintain our properties, (3) operational tenant allowances, (4) capitalized leasing costs, (5) non-cash compensation charges, and (6) amortization of above- and below-market lease intangibles.

We believe that net income is the most directly comparable GAAP measurement to FAD. We believe FAD provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. In addition, we believe that to further understand our liquidity, FAD should be compared with our cash flow from operating activities determined in accordance with GAAP, as presented in our consolidated financial statements. The computation of FAD may not be comparable to FAD reported by other REITs or real estate companies and FAD does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, or as an alternative to net cash flow from operating activities (determined in accordance with GAAP), as a measure of our liquidity.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)

NAREIT defines Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”), which is a non-GAAP measure, as net income (computed in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization; plus or minus losses and gains on the disposition of depreciated property, including losses/ gains on change in control; plus impairment write downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; plus or minus adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates. We compute EBITDAre in accordance with the standards established by NAREIT, which may not be comparable to EBITDAre 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.

EBITDAre does not include interest expense, income tax expense, gains or losses on sales of operating real estate or impairment writedowns of depreciable real estate, which are included in the determination of net income in accordance with GAAP. Accordingly, EBITDAre is not a comprehensive measure of our operating cash flows. EBITDAre does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that net income is the most directly comparable GAAP measurement to EBITDAre.

We believe that EBITDAre is helpful to management and investors as a measure of operating performance because it provides an additional performance measure to management and investors to facilitate the evaluation and comparison of the Company to other REITs and to other non-real estate commercial enterprises.