pei-ex991_90.htm

EX-99.1 2 pei-ex991_90.htm EX-99.1 pei-ex991_90.htm

Exhibit 99.1

Supplemental Financial and Operating Information

December 31, 2020

www.preit.com

NYSE: PEI

NYSE: PEIPRB, PEIPRC, PEIPRD

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

December 31, 2020


Table of Contents
Introduction

Company Information	1

Earnings Release	2

Changes in Funds from Operations for the Three Months and Year Ended December 31, 2020	5

Market Capitalization and Capital Resources	6

Operating Results

Statements of Operations – Three Months and Year Ended December 31, 2020 and 2019	7

Computation of Earnings Per Share	8

Reconciliation of Net Operating Income and EBITDAre – Three Months and Year Ended December 31, 2020 and 2019	9

Reconciliation of Net Income (Loss) (GAAP Measure) to Net Operating Income from Consolidated Properties (Non-GAAP Measure) - Three Months Ended December 31, 2020 and 2019	10

Reconciliation of Equity in Income of Partnerships to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Three Months Ended December 31, 2020 and 2019	11
Reconciliation of Net Income (Loss) (GAAP Measure) to Net Operating Income from Consolidated Properties (Non-GAAP Measure) - Year Ended December 31, 2020 and 2019	12

Reconciliation of Equity in Income of Partnerships to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Year Ended December 31, 2020 and 2019	13

Reconciliation of Funds From Operations and Funds Available for Distribution – Three Months and Year Ended December 31, 2020 and 2019	14

Condensed Consolidated Balance Sheet	15

Assets and Liabilities - Equity Method Investments, at Ownership Share	16

Operating Statistics

Leasing Activity Summary – Three Months and Year Ended December 31, 2020	17

Summarized Sales and Rent Per Square Foot and Occupancy Percentages	19

Mall Occupancy Percentage and Sales Per Square Foot	20

Top Twenty Tenants	21

Lease Expirations	22

Property Information	23

Balance Sheet

Investment in Real Estate - Consolidated Properties	25

Investment in Real Estate - Equity Method Investments at Ownership Share	26

Capital Expenditures – Three Months and Year Ended December 31, 2020	27

Debt Analysis	28

Debt Schedule	30

Selected Debt Ratios	31

Forward Looking Statements	32

Definitions	33

Pennsylvania Real Estate Investment Trust

Company Information

Background

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT’s robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic’s top MSAs. PREIT is focused on enhancing the quality of its portfolio through redevelopment, anchor repositioning, diversifying its tenant mix and densifying properties by adding a mix of uses. Since 2012, the Company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures. The portfolio consists of 26 retail properties, 25 of which are operating properties and one is a development property. The 25 operating retail properties have a total of 19.8 million square feet and include 20 shopping malls and five 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:

Heather Crowell

EVP, Strategy and Communications

One Commerce Square

2005 Market Street, Suite 1000

Philadelphia, PA 19103

Telephone: (215) 875-0735

Fax: (215) 546-2504

Email: Heather.Crowell@preit.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

Heather Crowell

EVP, Strategy and Communications

(215) 454-1241

heather.crowell@preit.com

PREIT Reports Fourth Quarter and Full Year 2020 Results

Core Mall Total Leased Space reached 91.5%

Four Anchor Replacement Transactions Executed

Traffic approaching pre-COVID levels across portfolio

Philadelphia, March 11, 2021 - PREIT (NYSE: PEI) today reported results for the three months and year ended December 31, 2020. A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is located in the tables accompanying this release.

	Three Months Ended December 31,						Year Ended December 31,
(per share amounts)	2020			2019			2020			2019
Net loss - basic and diluted	$	(2.62	)	$	(0.29	)	$	(3.72	)	$	(0.52	)
FFO		(0.22	)		0.28			(0.02	)		1.33
FFO, as adjusted		(0.13	)		0.34			(0.01	)		1.05
FFO from assets transferred in 2019 and 2020		-			(0.01	)		-			(0.02	)
FFO, as adjusted for assets transferred	$	(0.13	)	$	0.33		$	(0.01	)	$	1.03

“The PREIT team, and portfolio, proved to be resilient as we navigated uncertain terrain. Our targeted strategy of dispositions and anchor replacements over the past several years created a real estate portfolio of bullseye locations in high barrier-to-entry markets that stands the test of time,” said Joseph F. Coradino, Chairman and CEO of PREIT. “Our portfolio is comprised of a differentiated mix of uses that attracts robust demand from a variety of non-retail uses, strengthening the Company and fortifying our revenue stream. At the same time, we are well-positioned for a strong return to brick and mortar shopping and leisure as restrictions ease and vaccinations continue.”

•

Same Store NOI, excluding lease termination revenue, decreased 33.3% for the three months ended December 31, 2020 compared to the three months ended December 31, 2019.

•

The quarter was impacted by a decrease in revenue of $22.1 million primarily resulting from bankruptcies and related store closings, an increase in credit losses for challenged tenants as well as decreased percentage sales revenue resulting from restrictions limiting consumer traffic related to the COVID-19 pandemic.

•

Same Store NOI, excluding lease termination revenue, decreased 28.2% for the year ended December 31, 2020 compared to December 31, 2019.

•

The year was impacted by a decrease in revenue of $75.0 million primarily resulting from bankruptcies and related store closings, an increase in credit losses for challenged tenants, the accounting for rental abatements as well as decreased percentage sales revenue resulting from mall closures related to the COVID-19 pandemic.

•

In support of challenged tenants, PREIT granted just under $12 million in rent abatements.

•

Cash collections continued to improve, increasing to 112% of billings for Q4 2020.

•

Core Mall total occupancy was 90.3%. Core Mall non-anchor occupancy was 89.4%.

•

Core Mall non-anchor leased space, at 90.1%, exceeds occupied space by 70 basis points when factoring in executed new leases slated for future occupancy.

•

Average renewal spreads for the quarter ended December 31, 2020 were 1.4% in the wholly-owned portfolio for spaces less than 10,000 square feet.

•

The Company supported local economies, paying over $66 million in real estate taxes during 2020.

•

The Company completed its financial restructuring, extending its debt maturity schedule and improving its liquidity position.

Leasing and Redevelopment

•

358,000 square feet of leases are signed for future openings, which is expected to contribute annual gross rent of $8.4 million.

•

Leasing momentum continued with over 600,000 square feet of new stores opening in the portfolio during the year.

•

Construction is underway for Aldi to open its first store in the portfolio at Dartmouth Mall during Q3 2021.

•

A lease has been executed for a new self-storage facility in previously unused below grade space at Mall at Prince George’s with an anticipated opening in Q1 2022.

•

A lease with Tilt Studios was signed to replace JC Penney at Magnolia Mall in Florence, SC.

•

A transaction has been executed with Cooper Hospital for an outpatient location in the former Sears space at Moorestown Mall in Moorestown, NJ.

COVID-19 Impact and Response

•

During 2020, the Company experienced varying levels of property closures and continued restrictions on certain businesses.

•

Core mall traffic at comparable properties was approximately 74% of 2019 traffic during the holiday season.

•

Cash collections for April through December totaled 80% of billings for those months.

•

In continuous support of its tenants, PREIT has developed and implemented its own contactless pick up solution, Mall2Go, and developed a branded parking lot activation series, Park and Play, that has resulted in two dozen events being held between late July and mid-September at its properties.

•

Across its portfolio, the Company has hosted blood drives and food donation drives, provided meals to area essential workers, and donated much needed protective supplies. Read more about our efforts here.

•

The Company launched sMALL surprises, an innovative e-commerce platform delivering curated surprise packs from our mall retailers based on the recipient’s interests.

•

The Company launched an initiative to support black-owned businesses and brands throughout its portfolio to empower its customers to make more informed purchasing decisions, noting that black-owned businesses were disproportionately challenged by the pandemic.

Primary Factors Affecting Financial Results for the Three Months Ended December 31, 2020 and 2019

•

Net loss attributable to PREIT common shareholders was $202.1 million (which takes into consideration the accrual of preferred dividends that accumulated during the quarter but have not been paid), or $2.62 per basic and diluted share for the three months ended December 31, 2020, compared to net loss attributable to PREIT common shareholders of $21.7 million, or $0.29 per basic and diluted share for the three months ended December 31, 2019.

•

As a result of the revaluation of assets at our Fashion District Philadelphia partnership, the Company recognized a loss on remeasurement of $148.5 million in the quarter.

•

Same Store NOI, including lease terminations, decreased by $20.7 million, or 34.4%. The decrease is primarily due to lost revenues from bankrupt tenants, an increase in credit losses and a decrease in percentage of sales revenue due to COVID-19 related store closures, partially offset by new store openings, including contributions from replacement anchors.

•

Non-Same Store NOI decreased by $1.6 million, primarily due to lost revenues from bankrupt tenants, an increase in credit losses and a decrease in percentage of sales revenue due to COVID-19 related mall closures. Other decreases in NOI from Non-Same Store properties is due to the derecognition of property at Valley View Mall during the third quarter of 2020.

•

FFO for the three months ended December 31, 2020 was $(0.22) per diluted share and OP Unit compared to $0.28 per diluted share and OP Unit for the three months ended December 31, 2019. Adjustments to FFO in the fourth quarter of 2020 were related to $0.05 per share from reorganization expenses and $0.04 per share from loss on hedge ineffectiveness. Adjustments to FFO in the 2019 quarter included $0.04 per share of provision for employee separation expenses and $0.03 per share of impairment of development land parcels.

All NOI and FFO amounts referenced as primary factors affecting financial results above include our share of unconsolidated properties’ revenues and expenses. Additional information regarding changes in operating results for the three months ended December 31, 2020 and 2019 is included on page 16.

Debt Restructuring and Chapter 11 Process

On December 11, 2020, the Company announced that it had successfully completed its financial restructuring and emerged from Chapter 11.

The Company’s new credit facility provides the Company access to up to $130 million of new capital to support its operations and continue advancing its strategic priorities. In addition to recapitalizing its business, PREIT's debt maturity schedule has been extended, providing the Company with enhanced financial flexibility.

Asset Dispositions

Multifamily Land Parcels: The Company has executed agreements of sale for land parcels for anticipated multifamily development in the amount of $87.2 million. The agreements are with multiple buyers across five properties for 2,200 units as part of Phase I of the Company’s previously announced multifamily land sale plan. Closing on the transactions is subject to customary due diligence provisions and securing entitlements.

Hotel Parcels: The Company has an executed agreement of sale to convey a land parcel for anticipated hotel development in the amount of $2.5 million for approximately 125 rooms. Closing on the transaction is subject to customary due diligence provisions and securing entitlements.

Retail Operations

Due to COVID-related mall closures impacting a significant portion of the year, the Company is not reporting tenant sales at this time.

2021 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 Friday March 12, 2021, to review the Company’s results and future outlook. To listen to the call, please dial 1-844-885-9139 (domestic toll free), or 1-647-689-4441 (international), and request to join the PREIT call, Conference ID 4671799, 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

Rounding

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

Pennsylvania Real Estate Investment Trust

Changes in Funds from Operations

For the Three Months and Year Ended December 31, 2020 as compared to the Three Months and Year Ended December 31, 2019

(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 December 31			Per Diluted Share and OP Unit			Year Ended December 31			Per Diluted Share and OP Unit
Funds from Operations, as adjusted December 31, 2019	$	26,657		$	0.34		$	82,650		$	1.05

Changes - Q4 2019 to Q4 2020

Contribution from anchor replacements and new box tenants		1,422			0.02			4,650			0.06
Impact from bankruptcies		(1,694	)		(0.02	)		(3,356	)		(0.05	)
Other leasing activity, including base rent and net CAM and real estate tax recoveries		(7,590	)		(0.10	)		(32,931	)		(0.42	)
Lease termination revenue		(949	)		(0.01	)		824			0.01
Credit losses		(8,271	)		(0.11	)		(19,739	)		(0.25	)
Other		(1,488	)		(0.02	)		(3,057	)		(0.04	)
Same Store NOI from unconsolidated properties		(2,092	)		(0.03	)		(5,729	)		(0.08	)
Same Store NOI		(20,662	)		(0.26	)		(59,339	)		(0.75	)
Non Same Store NOI		(1,588	)		(0.02	)		(9,797	)		(0.13	)
Dilutive effect of asset sales		(718	)		(0.01	)		(1,851	)		(0.03	)
General and administrative expenses		(6,890	)		(0.09	)		(4,262	)		(0.06	)
Capitalization of leasing costs		(238	)		(0.01	)		(756	)		(0.01	)
Gain on debt extinguishment		(1,514	)		(0.02	)		(26,346	)		(0.34	)
Gain on sales of non-operating real estate		228			0.01			54			-
Other		9,327			0.12			41,539			0.53
Interest expense, net		(15,044	)		(0.19	)		(22,921	)		(0.29	)
Increase in weighted average shares		-			(0.01	)		-			-
Funds from Operations, as adjusted December 31, 2020	$	(10,442	)	$	(0.13	)	$	(1,029	)	$	(0.01	)
Insurance recoveries, net		-			-			586			0.01
Reorganization expenses		(3,769	)		(0.05	)		(3,769	)		(0.05	)
Gain on derecognition of property		1,121			0.02			8,127			0.11
Loss gain on debt extinguishment		(1,487	)		(0.02	)		(1,487	)		(0.02	)
Provision for employee separation expense		(55	)		-			(1,227	)		(0.02	)
Loss on hedge ineffectiveness		(2,912	)		(0.04	)		(2,912	)		(0.04	)
Funds from Operations December 31, 2020	$	(17,544	)	$	(0.22	)	$	(1,711	)	$	(0.02	)

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands)

	December 31, 2020			December 31, 2019
MARKET CAPITALIZATION

EQUITY CAPITALIZATION
Common Shares Outstanding		79,537			77,550
OP Units Outstanding		1,979			2,023
Total Common Shares and OP Units Outstanding		81,516			79,573
Equity Market Capitalization—Common Shares and OP Units	$	81,516		$	424,124
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	$	465,266		$	807,874


DEBT CAPITALIZATION
Secured Debt Balance ⁽¹⁾	$	2,236,872		$	1,280,208
Unsecured Debt Balance ^{(2) (3)}		-			805,000
Debt Capitalization	$	2,236,872		$	2,085,208
TOTAL MARKET CAPITALIZATION	$	2,702,138		$	2,893,082

Equity Capitalization/Total Market Capitalization		17.2	%		27.9	%
Debt Capitalization/Total Market Capitalization		82.8	%		72.1	%
Unsecured Debt Balance/Total Debt		0.0	%		38.6	%


CAPITAL RESOURCES
Cash and Cash Equivalents	$	55,086		$	26,922
Revolving Facility		130,000			400,000
Amount Outstanding		(54,830	)		(255,000	)
Available Revolving Facility ⁽⁴⁾	$	75,170		$	145,000
Term Loans		1,072,620			700,500
Amount Borrowed		(1,072,620	)		(700,500	)
Available Term Loans	$	-		$	-
TOTAL	$	130,256		$	171,922
Shelf Registration	$	-		$	500,000

(1)

Includes all consolidated mortgages, term loans, and revolving credit facility, as well as our share of mortgage debt from unconsolidated equity method investments and $100.5 million and $150.5 million of secured debt from our share of the FDP Term Loan as of December 31, 2020 and 2019, respectively and $50.0 million from our share of the Partnership Loan as of December 31, 2020.

(2)	The unsecured debt balance includes a 2018 Revolving Facility balance of $255,000 as of December 31, 2019.

(3)	The unsecured debt balance includes a Term Loan balance $550,000 as of December 31, 2019.

(4)	The available Credit Facility borrowings are subject to covenants that may restrict amounts that can be borrowed, however the majority of these covenants do not come into effect until June 30, 2021.

Pennsylvania Real Estate Investment Trust

Statement of Operations – Three Months and Year Ended December 31, 2020 and 2019

	Three Months Ended December 31,						Year Ended December 31,
(in thousands of dollars)	2020			2019			2020			2019
REVENUE:
Real estate revenue:
Lease revenue	$	58,828		$	78,643		$	237,141		$	302,311
Expense reimbursements		4,141			4,637			15,462			19,979
Other real estate revenue		3,530			5,049			8,333			12,668
Total real estate revenue		66,499			88,329			260,936			334,958
Other income		123			393			887			1,834
Total revenue		66,622			88,722			261,823			336,792
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes		(26,104	)		(27,369	)		(106,522	)		(113,260	)
Utilities		(2,858	)		(3,383	)		(11,829	)		(14,733	)
Other property operating expenses		(2,848	)		(2,750	)		(8,547	)		(8,565	)
Total property operating expenses		(31,810	)		(33,502	)		(126,898	)		(136,558	)
Depreciation and amortization		(30,766	)		(39,699	)		(126,362	)		(137,784	)
General and administrative expenses		(19,481	)		(12,591	)		(50,272	)		(46,010	)
Provision for employee separation expenses		(54	)		(2,611	)		(1,227	)		(3,689	)
Insurance recoveries, net		-			(132	)		586			4,362
Project costs and other expenses		(7	)		(17	)		(294	)		(284	)
Total operating expenses		(82,118	)		(88,552	)		(304,467	)		(319,963	)
Interest expense, net⁽¹⁾		(30,042	)		(17,001	)		(84,341	)		(63,987	)
Gain (loss) on debt extinguishment		(1,487	)		27			(1,487	)		24,859
Gain on derecognition of property		1,121			-			8,127			-
Impairment of assets		-			(1,455	)		-			(1,455	)
Impairment of development land parcel		-			(2,098	)		-			(3,562	)
Reorganization expenses		(3,769	)		-			(3,769	)		-
Total expenses		(116,295	)		(109,079	)		(385,938	)		(364,108	)
Loss before equity in (loss) income of partnerships, loss on remeasurement of assets by equity method investee, gain on sales of real estate by equity method investee, gain on sales of real estate, net, and gain on sales of interests in non operating real estate, net of adjustment		(49,673	)		(20,357	)		(124,115	)		(27,316	)
Equity in (loss) income of partnerships		(2,746	)		2,153			(5,544	)		8,289
Loss on remeasurement of assets by equity method investee		(148,545	)		-			(148,545	)		-
Gain on sales of real estate by equity method investee		-			-			-			553
Gain on sales of real estate, net		275			72			11,444			2,756
Gain on sales of interests in non operating real estate		227			2,718			54			2,718
Net loss		(200,462	)		(15,414	)		(266,706	)		(13,000	)
Less: net loss attributed to noncontrolling interest		5,192			565			7,189			2,128
Net loss attributable to PREIT		(195,270	)		(14,849	)		(259,517	)		(10,872	)
Less: cumulative preferred share dividends		(6,844	)		(6,844	)		(27,375	)		(27,375	)
Net loss attributable to PREIT common shareholders	$	(202,114	)	$	(21,693	)	$	(286,892	)	$	(38,247	)

(1)	Net of capitalized interest expense of $348 and $756 for the three months ended December 31, 2020 and 2019, respectively, and $2,192 and $7,725 for the year ended December 31, 2020 and 2019, respectively.

(2)	Equity in (loss) income of partnerships is net of capitalized interest expense of $0 and $1,471 for the three months ended December 31, 2020 and 2019, respectively, and $2,394 and $6,025 for the year ended December 31, 2020 and 2019, respectively.

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share – Three Months and Year Ended December 31, 2020 and 2019

(in thousands, except per share amounts)

	Three Months Ended December 31,						Year Ended December 31,
(in thousands, except per share amounts)	2020			2019			2020			2019
Net loss	$	(200,462	)	$	(15,414	)	$	(266,706	)	$	(13,000	)
Noncontrolling interest		5,193			565			7,189			2,128
Cumulative preferred share dividends		(6,844	)		(6,844	)		(27,375	)		(27,375	)
Dividends on unvested restricted shares		-			(219	)		(363	)		(883	)
Net loss used to calculate loss per share—basic and diluted	$	(202,112	)	$	(21,912	)	$	(287,255	)	$	(39,130	)
Basic and diluted loss per share:	$	(2.62	)	$	(0.29	)	$	(3.72	)	$	(0.52	)

(in thousands of shares)
Weighted average shares outstanding—basic		77,457			76,557			77,227			75,221
Effect of common share equivalents⁽¹⁾		-			-			-			-
Weighted average shares outstanding—diluted		77,457			76,557			77,227			75,221

(1)

The Company had net losses for the three months ended December 31, 2020 and 2019 and the year ended December 31, 2020 and 2019. Therefore, the effects of common share equivalents of 285 and 485 for the three months ended December 31, 2020 and 2019, respectively, and, 380 and 452 for the year ended December 30, 2020 and 2019, respectively, 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– Three Months Ended December 31, 2020 and 2019 (Non-GAAP Measures)

(in thousands)

Net Operating Income ("NOI") Reconciliation for the Three Months Ended December 31, 2020⁽¹⁾

	Same Store				Change						Non Same Store				Total
(in thousands of dollars)	2020		2019		$			%			2020		2019		2020		2019
NOI from consolidated properties	$	34,095	$	52,666	$	(18,571	)		(35.3	%)	$	594	$	2,162	$	34,689	$	54,828
NOI attributable to equity method investments, at ownership share		5,359		7,451		(2,092	)		(28.1	%)		903		923		6,262		8,374
Total NOI		39,454		60,117		(20,663	)		(34.4	%)		1,497		3,085		40,951		63,202
Less: lease termination revenue		32		1,018		(986	)		(96.9	%)		-		1		32		1,019
Total NOI excluding lease termination revenue	$	39,422	$	59,099	$	(19,677	)		(33.3	%)	$	1,497	$	3,084	$	40,919	$	62,183

(1)	NOI is a non-GAAP measure. See definition of NOI on page 33.

Net Operating Income ("NOI") Reconciliation for the Year Ended December 31, 2020⁽¹⁾

	Same Store				Change						Non Same Store				Total
(in thousands of dollars)	2020		2019		$			%			2020		2019		2020		2019
NOI from consolidated properties	$	132,264	$	185,874	$	(53,610	)		(28.8	%)	$	1,774	$	12,526	$	134,038	$	198,400
NOI attributable to equity method investments, at ownership share		22,869		28,597		(5,728	)		(20.0	%)		1,687		732		24,556		29,329
Total NOI		155,133		214,471		(59,338	)		(27.7	%)		3,461		13,258		158,594		227,729
Less: lease termination revenue		2,268		1,531		737			48.1	%		-		18		2,268		1,549
Total NOI excluding lease termination revenue	$	152,865	$	212,940	$	(60,075	)		(28.2	%)	$	3,461	$	13,240	$	156,326	$	226,180

(1)	NOI is a non-GAAP measure. See definition of NOI on page 33.

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

	Three Months Ended December 31,						Year Ended December 31,
	2020			2019			2020			2019
Net loss	$	(200,461	)	$	(15,414	)	$	(266,706	)	$	(13,000	)
Depreciation and amortization:
Consolidated		30,765			39,699			126,362			137,784
Unconsolidated properties at ownership share		4,244			3,421			16,640			9,874
Interest expense:
Consolidated		30,042			17,001			84,341			63,987
Unconsolidated properties at ownership share		4,716			2,713			13,278			10,711
Gain on sales of real estate by equity method investee		-			-			-			(553	)
Gain on sales of real estate, net		(274	)		(72	)		(11,444	)		(2,756	)
Gain (loss) on debt extinguishment, net		1,487			(27	)		1,487			(24,859	)
Gain on derecognition of property		(1,121	)		-			(8,127	)
Impairment of developmental land parcel		-			-			-			3,562
Impairment of assets		-			1,455			-			3,553
Loss on remeasurement of assets by equity method investee		148,545			-			148,545			-
EBITDAre	$	17,944		$	48,776		$	104,377		$	188,303

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

Pennsylvania Real Estate Investment Trust

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

Three Months Ended December 31, 2020 and 2019

(in thousands)

	Three Months Ended December 31,
	2020			2019
Net loss	$	(200,461	)	$	(15,414	)
Other income		(123	)		(393	)
Depreciation and amortization		30,765			39,699
General and administrative expenses		19,480			12,591
Insurance recoveries, net		-			132
Provision for employee separation expenses		55			2,611
Project costs and other expenses		7			17
Interest expense, net		30,042			17,001
Equity in loss (income) of partnerships		2,746			(2,153	)
Loss on remeasurement of assets by equity method investee		148,545			-
Gain (loss) on debt extinguishment, net		1,487			(27	)
Gain on derecognition of property		(1,121	)		-
Impairment of assets		-			1,455
Impairment of development land parcel		-			2,098
Reorganization expenses		3,769			-
Loss on sales of real estate by equity method investee		-			-
Gain on sales of real estate, net		(274	)		(72	)
Gain on sales of interest in non operating real estate		(228	)		(2,718	)
NOI from consolidated properties⁽¹⁾	$	34,689		$	54,828

(1)	NOI is a non-GAAP measure. See definition of NOI on page 33.

	Same Store						Non Same Store						Total
	2020			2019			2020			2019			2020			2019
Real estate revenue
Base rent	$	48,515		$	52,006		$	1,598		$	3,137		$	50,113		$	55,144
CAM reimbursement income		9,033			9,960			229			550			9,262			10,510
Real estate tax income		7,628			8,607			(101	)		141			7,527			8,748
Percentage rent		1,120			3,729			-			40			1,120			3,769
Lease termination revenue		14			963			-			1			14			964
		66,310			75,265			1,726			3,869			68,036			79,134
Less: credit (losses) recoveries		(8,789	)		(518	)		(419	)		27			(9,208	)		(491	)
Lease revenue		57,521			74,747			1,307			3,896			58,828			78,644
Expense reimbursements		4,001			4,294			141			343			4,142			4,637
Other real estate revenue		3,344			4,711			185			337			3,529			5,048
Total real estate revenue		64,866			83,752			1,633			4,576			66,499			88,328
Property operating expenses					-						-
CAM and real estate taxes		(25,370	)		(25,427	)		(734	)		(1,943	)		(26,104	)		(27,370	)
Utilities		(2,729	)		(3,109	)		(129	)		(274	)		(2,858	)		(3,383	)
Other property operating expenses		(2,672	)		(2,551	)		(176	)		(197	)		(2,848	)		(2,748	)
Total property operating expenses		(30,771	)		(31,087	)		(1,039	)		(2,414	)		(31,810	)		(33,501	)
NOI from consolidated properties⁽¹⁾	$	34,095		$	52,665		$	594		$	2,163		$	34,689		$	54,828
Less: Lease termination revenue		14			963			-			1			14			964
NOI from consolidated properties excluding lease termination revenue⁽¹⁾	$	34,081		$	51,702		$	594		$	2,161		$	34,675		$	53,863
% change in Same Store NOI from consolidated properties excluding lease termination revenue				(34.1%)

(1)	NOI is a non-GAAP measure. See definition of NOI on page 33.

Pennsylvania Real Estate Investment Trust

Reconciliation of Equity in Income of Partnerships to Net Operating Income from Equity Method Investments, at Ownership Share

(Non-GAAP Measure)

Three Months Ended December 31, 2020 and 2019

(in thousands)

	Three Months Ended December 31,
(in thousands of dollars)	2020			2019
Equity in (loss) income of partnerships	$	(2,746	)	$	2,153
Other income		(10	)		(29	)
Depreciation and amortization		4,244			3,421
Interest expense and other expenses, net		4,774			2,829
NOI from equity method investments at ownership share⁽¹⁾	$	6,262		$	8,374

(1)	NOI is a non-GAAP measure. See definition of NOI on page 33.

	Same Store						Non Same Store						Total
	2020			2019			2020			2019			2020			2019
Real estate revenue
Base rent	$	6,256		$	6,692		$	1,629		$	1,098		$	7,885		$	7,790
CAM reimbursement income		1,289			1,551			447			596			1,736			2,147
Real estate tax income		902			998			78			107			980			1,105
Percentage rent		36			133			94			109			130			242
Lease termination revenue		18			55			-			-			18			55
		8,501			9,429			2,248			1,910			10,749			11,339
Less: credit (losses) recoveries		(849	)		30			(16	)		(47	)		(865	)		(17	)
Lease revenue		7,652			9,459			2,232			1,863			9,884			11,322
Expense reimbursements		390			472			188			134			578			606
Other real estate revenue		268			359			431			838			699			1,197
Total real estate revenue		8,309			10,290			2,851			2,835			11,160			13,125
Property operating expenses
CAM and real estate taxes		(2,217	)		(2,115	)		(1,381	)		(1,411	)		(3,598	)		(3,526	)
Utilities		(158	)		(180	)		(165	)		(111	)		(323	)		(291	)
Other property operating expenses		(574	)		(544	)		(402	)		(390	)		(976	)		(934	)
Total property operating expenses		(2,949	)		(2,839	)		(1,948	)		(1,912	)		(4,897	)		(4,751	)
NOI from equity method investments at ownership share⁽¹⁾	$	5,359		$	7,451		$	904		$	923		$	6,263		$	8,374
Less: Lease termination revenue		18			55			-			-			18			55
NOI from equity method investments at ownership share excluding lease termination revenue⁽¹⁾	$	5,341		$	7,396		$	904		$	923		$	6,245		$	8,319
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				(27.8%)

(1)	NOI is a non-GAAP measure. See definition of NOI on page 33.

Pennsylvania Real Estate Investment Trust

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

Year Ended December 31, 2020 and 2019

(in thousands)

	Year Ended December 31,
	2020			2019

Net loss	$	(266,706	)	$	(13,000	)
Other income		(887	)		(1,834	)
Depreciation and amortization		126,362			137,784
General and administrative expenses		50,271			46,010
Insurance recoveries, net		(586	)		(4,362	)
Provision for employee separation expenses		1,228			3,689
Project costs and other expenses		294			283
Interest expense, net		84,341			63,987
Impairment of assets		-			1,455
Impairment of development land parcel		-			3,562
Equity in loss (income) of partnerships		5,544			(8,289	)
Loss on remeasurement of assets by equity method investee		148,545			-
Gain (loss) on debt extinguishment, net		1,487			(24,859	)
Gain on derecognition of property		(8,127	)		-
Gain on sales of real estate by equity method investee		-			(553	)
Gain on sales of interests in real estate, net		(11,444	)		(2,756	)
Reorganization expenses		3,769			-
Loss on sales of interest in non operating real estate		(54	)		(2,717	)
NOI from consolidated properties⁽¹⁾	$	134,038		$	198,400

	Same Store						Non Same Store						Total
	2020			2019			2020			2019			2020			2019
Real estate revenue
Base rent	$	178,376		$	200,625		$	7,823		$	18,194		$	186,199		$	218,819
CAM reimbursement income		36,809			40,606			1,495			3,268			38,304			43,874
Real estate tax income		32,211			34,614			331			1,629			32,542			36,243
Percentage rent		1,199			4,657			5			47			1,204			4,704
Lease termination revenue		2,250			1,426			-			18			2,250			1,444
		250,845			281,928			9,654			23,156			260,499			305,084
Less: credit (losses) recoveries		(22,206	)		(2,467	)		(1,151	)		(306	)		(23,357	)		(2,773	)
Lease revenue		228,638			279,461			8,503			22,850			237,141			302,311
Expense reimbursements		14,599			17,936			863			2,043			15,462			19,979
Other real estate revenue		7,873			10,705			460			1,963			8,333			12,668
Total real estate revenue		251,110			308,102			9,826			26,856			260,936			334,958
Property operating expenses					-						-
CAM and real estate taxes		(99,916	)		(101,521	)		(6,606	)		(11,739	)		(106,522	)		(113,260	)
Utilities		(11,034	)		(13,035	)		(795	)		(1,698	)		(11,829	)		(14,733	)
Other property operating expenses		(7,896	)		(7,672	)		(651	)		(893	)		(8,547	)		(8,565	)
Total property operating expenses		(118,846	)		(122,228	)		(8,052	)		(14,330	)		(126,898	)		(136,558	)
NOI from consolidated properties⁽¹⁾	$	132,264		$	185,874		$	1,774		$	12,526		$	134,038		$	198,400
Less: Lease termination revenue		2,250			1,426			-			18			2,250			1,444
NOI from consolidated properties excluding lease termination revenue⁽¹⁾	$	130,014		$	184,448		$	1,774		$	12,508		$	131,788		$	196,956
% change in Same Store NOI from consolidated properties excluding lease termination revenue				(29.5%)

(1)	NOI is a non-GAAP measure. See definition of NOI on page 33.

Reconciliation of Equity in Income of Partnerships to Net Operating Income from Equity Method Investments, at Ownership Share

(Non-GAAP Measure)

Year Ended December 31, 2020 and 2019

(in thousands)

	Year Ended December 31,
(in thousands of dollars)	2020			2019
Equity in (loss) income of partnerships	$	(5,544	)	$	8,289
Other income		(47	)		(75	)
Depreciation and amortization		16,641			9,874
Interest expense and other expenses, net		13,506			11,242
NOI from equity method investments at ownership share⁽¹⁾	$	24,556		$	29,330

	Same Store						Non Same Store						Total
	2020			2019			2020			2019			2020			2019
Real estate revenue
Base rent	$	23,943		$	26,523		$	5,117		$	1,703		$	29,060		$	28,226
CAM reimbursement income		5,522			6,341			2,215			686			7,737			7,027
Real estate tax income		3,856			3,798			397			241			4,253			4,039
Percentage rent		120			383			278			109			398			492
Lease termination revenue		18			105			-			-			18			105
		33,459			37,150			8,007			2,739			41,466			39,889
Less: credit losses		(2,193	)		48			(2,048	)		13			(4,241	)		61
Lease revenue		31,266			37,198			5,959			2,752			37,225			39,950
Expense reimbursements		1,663			1,874			696			284			2,359			2,158
Other real estate revenue		620			1,165			2,152			1,552			2,772			2,717
Total real estate revenue		33,549			40,237			8,807			4,588			42,356			44,825
Property operating expenses
CAM and real estate taxes		(8,172	)		(8,575	)		(5,541	)		(2,655	)		(13,713	)		(11,230	)
Utilities		(633	)		(766	)		(582	)		(230	)		(1,215	)		(996	)
Other property operating expenses		(1,875	)		(2,298	)		(997	)		(971	)		(2,872	)		(3,269	)
Total property operating expenses		(10,680	)		(11,639	)		(7,120	)		(3,856	)		(17,800	)		(15,495	)
NOI from equity method investments at ownership share⁽¹⁾	$	22,869		$	28,598		$	1,687		$	732		$	24,556		$	29,330
Less: Lease termination revenue		18			105			-			-			18			105
NOI from equity method investments at ownership share excluding lease termination revenue⁽¹⁾	$	22,851		$	28,493		$	1,687		$	732		$	24,538		$	29,225
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				(19.8%)

(1)	NOI is a non-GAAP measure. See definition of NOI on page 33.

Pennsylvania Real Estate Investment Trust

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

Three Months and Year Ended December 31, 2020 and 2019

(in thousands, except per share amounts)

	Three Months Ended December 31,						Year Ended December 31,
	2020			2019			2020			2019
FUNDS FROM OPERATIONS ⁽¹⁾

Net loss	$	(200,461	)	$	(15,414	)	$	(266,706	)	$	(13,000	)
Depreciation and amortization on real estate					-						-
Consolidated properties		30,402			39,296			124,940			136,422
PREIT's share of equity method investments		4,244			3,421			16,641			9,874
Gain on sales of real estate, net		(274	)		(72	)		(11,444	)		(2,756	)
Impairment of assets		-			1,455			-			1,456
Loss on remeasurement of assets by equity method investee		148,545			-			148,545			-
Dividends on preferred shares⁽²⁾		-			(6,843	)		(13,687	)		(27,375	)
Funds from operations attributable to common shareholders and OP Unit holders⁽¹⁾	$	(17,544	)	$	21,843		$	(1,711	)	$	104,621
Insurance recoveries, net		-			132			(586	)		(4,362	)
Reorganization expenses		3,769			-			3,769			-
Gain on debt extinguishment, net		1,487			(27	)		1,487			(24,859	)
Gain on derecognition of property		(1,121	)		-			(8,127	)		-
Impairment of development land parcel		-			2,098			-			3,562
Provision for employee separation expenses		55			2,611			1,227			3,689
Loss on hedge ineffectiveness		2,912			-			2,912			-
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders	$	(10,442	)	$	26,657		$	(1,029	)	$	82,651

FUNDS AVAILABLE FOR DISTRIBUTION⁽¹⁾

Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders⁽¹⁾	$	(10,442	)	$	26,657		$	(1,029	)	$	82,650
Adjustments:					-						-
Straight line rent		(175	)		(1,288	)		(2,093	)		(5,710	)
Recurring capital expenditures		(968	)		(4,295	)		(3,368	)		(17,590	)
Tenant allowances		(3,719	)		(6,041	)		(17,851	)		(12,122	)
Amortization of non-cash deferred compensation		1,726			579			6,747			6,212
Capitalized leasing costs		-			(238	)		(150	)		(906	)
Amortization of above- and below-market lease intangibles		(16	)		(16	)		(81	)		(67	)
Funds available for distribution to common shareholders and OP Unit holders⁽¹⁾	$	(13,594	)	$	15,359		$	(17,825	)	$	52,468

Funds from operations attributable to common shareholders and OP Unit holders per diluted share and OP Unit⁽¹⁾	$	(0.22	)	$	0.28		$	(0.02	)	$	1.33
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit	$	(0.13	)	$	0.34		$	(0.01	)	$	1.05
Funds available for distribution to common shareholders and OP Unit holders per diluted share and OP Unit⁽¹⁾	$	(0.17	)	$	0.19		$	(0.22	)	$	0.67

Weighted average number of shares outstanding	77,457	76,557	77,227	75,221
Weighted average effect of full conversion of OP Units	1,979	2,023	2,012	3,221
Effect of common share equivalents	285	485	380	453
Total weighted average shares outstanding, including OP Units	79,721	79,065	79,619	78,895

(1)	Non-GAAP measures. See definitions on page 333.

(2)

Does not include the impact of $6.8 million and $13.7 million of accrued, undeclared and unpaid preferred share dividends for the three months and year ended December 31, 2020, respectively. The Company cannot declare and pay cash dividends on common shares while there exists a preferred dividend arrearage

Pennsylvania Real Estate Investment Trust

Condensed Consolidated Balance Sheet

	December 31,
	2020			2019
(in thousands of dollars)
ASSETS:
INVESTMENTS IN REAL ESTATE, at cost:
Operating properties	$	3,168,536		$	3,099,034
Construction in progress		46,285			106,011
Land held for development		5,516			5,881
Total investments in real estate		3,220,337			3,210,926
Accumulated depreciation		(1,308,427	)		(1,202,722	)
Net investments in real estate		1,911,910			2,008,204
INVESTMENTS IN PARTNERSHIPS, at equity:		27,066			159,993
OTHER ASSETS:
Cash and cash equivalents		43,309			12,211
Tenant and other receivables, net		54,532			41,261
Intangible assets		11,392			13,404
Deferred costs and other assets, net		127,593			103,688
Assets held for sale		1,384			12,506
Total assets	$	2,177,186		$	2,351,267
LIABILITIES:
Mortgage loans payable, net	$	884,503		$	899,753
Term Loans, net		908,473			548,025
Revolving Facility		54,830			255,000
Tenants’ deposits and deferred rent		8,899			13,006
Distributions in excess of partnership investments		76,586			87,916
Fair value of derivative liabilities		23,292			13,126
Accrued expenses and other liabilities		93,663			107,016
Total liabilities		2,050,246			1,923,842
EQUITY:
Total equity		126,940			427,425
Total liabilities and equity	$	2,177,186		$	2,351,267

Pennsylvania Real Estate Investment Trust

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

(in thousands)

	December 31,
(in thousands of dollars)	2020			2019
ASSETS:
Investments in real estate, at cost:
Operating properties	$	824,328		$	883,530
Construction in progress		20,632			251,029
Total investments in real estate		844,960			1,134,559
Accumulated depreciation		(224,641	)		(229,877	)
Net investments in real estate		620,319			904,682
Cash and cash equivalents		28,060			34,766
Deferred costs and other assets, net		161,465			43,476
Total assets		809,844			982,924
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		491,119			499,057
FDP Term Loan, net		201,000			299,091
Partnership Loan		100,000			—
Other liabilities		132,715			79,166
Total liabilities		924,834			877,314
Net investment		(114,990	)		105,610
Partners’ share		(59,080	)		50,997
PREIT’s share		(55,910	)		54,613
Excess investment ⁽¹⁾		6,390			17,464
Net investments and advances	$	(49,520	)	$	72,077
Investment in partnerships, at equity	$	27,066		$	159,993
Distributions in excess of partnership investments		(76,586	)		(87,916	)
Net investments and advances	$	(49,520	)	$	72,077

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 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 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 December 31, 2020

		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		10		21,157		2.7	$	36.66	N/A		N/A			N/A			N/A			$	3.97
	Unconsolidated⁽⁴⁾		3		6,502		12.3		81.64	N/A		N/A			N/A			N/A				3.94
Total Under 10k sf			13		27,659		5.0	$	47.23	N/A		N/A			N/A			N/A			$	3.95
Total New Leases			13		27,659		5.0	$	47.23	N/A		N/A			N/A			N/A			$	3.95

Renewal Leases
Under 10k sf	Consolidated		42		110,638		2.8	$	54.19	$	55.96	$	(1.77	)		(3.2	%)		(1.2	%)	$	-
	Unconsolidated⁽⁴⁾		12		41,085		3.5	$	46.94	$	59.48		(12.54	)		(21.1	%)		(14.9	%)		-
Total Under 10k sf			54		151,723		3.0	$	52.23	$	56.91	$	(4.69	)		(8.2	%)		(5.2	%)	$	-

Over 10k	Consolidated		1		16,436		2.0		13.56		12.67		0.89			7.0	%		7.2	%	$	-
	Unconsolidated⁽⁴⁾		1		15,000		3.0		19.44		24.29		(4.85	)		(20.0	%)		(20.0	%)
Total Over 10k sf			2		31,436		2.5		16.37		18.21		(1.85	)		(10.2	%)		(8.2	%)
Total Fixed Rent			56		183,159		2.9	$	46.08	$	50.27	$	(4.19	)		(8.4	%)		(5.4	%)	$	-
Total Percentage in Lieu	Consolidated		12		26,790		1.4		31.15		42.57		(11.42	)		(26.8	%)	N/A				-
Total Renewal Leases			68		209,949		2.7	$	44.17	$	49.29	$	(5.12	)		(10.4	%)				$	-
Total Non Anchor			81		237,608		3.0	$	44.53

Anchor
New Leases			-		-		-	$	-	$	-	$	-			0.0	%		0.0	%	$	-
Renewal Leases	Consolidated		2		186,505		5.0		6.07		6.04		0.03			0.5	%		0.0	%		-
Total			2		186,505		5.0	$	6.07

(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)

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” in our Annual Report on Form 10-K for the year ended December 31, 2019 for further details on our ownership interests in our unconsolidated properties.

Pennsylvania Real Estate Investment Trust

Leasing Activity Summary – Year Ended December 31, 2020

		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		42		90,234		5.3	$	39.16	N/A		N/A			N/A			N/A			$	8.55
	Unconsolidated⁽⁴⁾		5		13,083		8.1		64.53	N/A		N/A			N/A			N/A				5.52
Total Under 10k sf			47		103,317		5.7	$	42.37	N/A		N/A			N/A			N/A			$	8.00
Total New Leases			47		103,317		5.7	$	42.37	N/A		N/A			N/A			N/A			$	8.00

Renewal Leases
Under 10k sf	Consolidated		114		284,793		2.8	$	54.44	$	55.80	$	(1.36	)		(2.4	%)		1.4	%	$	0.01
	Unconsolidated⁽⁴⁾		21		68,014		2.9	$	45.12	$	59.84		(14.72	)		(24.6	%)		(22.3	%)		-
Total Under 10k sf			135		352,807		2.8	$	52.64	$	56.58	$	(3.94	)		(7.0	%)		(3.6	%)	$	0.01

Over 10k sf	Consolidated		4		77,781		3.9		15.42		15.52	$	(0.10	)		(0.6	%)		(9.4	%)
	Unconsolidated⁽⁴⁾		1		15,000		3.0		19.44		24.29		(4.85	)		(20.0	%)		(20.0	%)
Total Over 10k sf			5		92,781		3.8		16.07		16.94		(0.87	)		(5.1	%)		(11.3	%)
Total Fixed Rent			140		445,588		3.0	$	45.03	$	48.33	$	(3.30	)		(6.8	%)		(4.2	%)	$	0.01
Percentage in Lieu	Consolidated		35		102,663		1.3		32.75		43.57	$	(10.82	)		(24.8	%)	N/A				-
	Unconsolidated⁽⁴⁾		1		636		3.0		72.76		97.60		(24.84	)		(25.5	%)
Total Percentage in Lieu			36		103,299		1.4	$	33.00	$	43.90	$	(10.91	)		(24.8	%)				$	0.01
Total Renewal Leases ⁽⁴⁾			176		548,887		2.7	$	42.76	$	47.49	$	(4.73	)		(10.0	%)				$	0.01
Total Non Anchor			223		652,204		3.2	$	42.70

Anchor
New Leases			-		-		-	$	-	$	-	$	-			0.0	%		0.0	%	$	-
Renewal Leases	Consolidated		2		186,505		5.0		6.07		6.04		0.03			0.5	%		0.0	%		-
Total			2		186,505		5.0	$	6.07

(1)

(2)

(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)

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages

	December 31, 2020⁽¹⁾																	December 31, 2019
						Actual Occupancy						Leased Occupancy																Actual Occupancy
	% Rolling 12 Mo. NOI			Average Gross Rent⁽²⁾⁽³⁾		Total			Non- Anchor			Total			Non- Anchor			% Rolling 12 Mo. NOI			Average Comp Sales		Average Gross Rent⁽²⁾⁽³⁾		Occupancy Cost⁽⁴⁾			Total			Non- Anchor
Malls		92.1	%	$	57.91		90.3	%		89.4	%		91.5	%		90.1	%		90.9	%	$	539	$	59.63		12.3	%		95.5	%		92.9	%
Non-Core Malls		0.1	%	$	42.92		51.3	%		48.4	%		51.3	%		48.4	%		1.5	%	$	317	$	46.28		15.2	%		59.2	%		65.8	%
Malls Total		92.3	%	$	57.53		87.9	%		87.5	%		89.1	%		88.2	%		92.4	%	$	531	$	59.22		12.3	%		93.2	%		91.6	%
Other Retail Properties		7.3	%	$	25.04		90.0	%		89.2	%		91.8	%		91.1	%		5.4	%	n/a		$	25.59	n/a				92.8	%		92.2	%
Total Retail Properties		99.5	%	$	48.25		88.1	%		87.8	%		89.4	%		88.6	%		97.8	%	n/a		$	49.97	n/a				93.2	%		91.7	%
Sold Properties		0.9	%	n/a		n/a			n/a			n/a			n/a				2.0	%	n/a		$	32.12	n/a				70.7	%		91.0	%
Other Properties ⁽⁴⁾		-0.5	%	n/a		n/a			n/a			n/a			n/a				0.1	%	n/a		n/a		n/a			n/a			n/a
Total Portfolio		100.0	%	$	48.25		88.1	%		87.8	%		89.4	%		88.6	%		100.0	%	$	531	$	49.43		12.3	%		92.6	%		91.7	%

(1)	Average comp sales are not reported for 2020 due to COVID-19 related mall closures impacting the majority of the second quarter of 2020. As a result of these closures, comparisons are not meaningful.

(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 $21.37 per square foot as of December 31, 2020 and $21.54 per square foot as of December 31, 2019.

(4)	Occupancy Cost was only included in 2019 and is not included in 2020, due to Average Comp Sales not being presented for 2020.

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot

	December 31, 2020										December 31, 2019								Change
	% of Mall NOI			Avg Comp Sales ⁽¹⁾	Total Occupancy %			Non- Anchor Occupancy %			Avg Comp Sales ⁽²⁾		Total Occupancy %			Non-Anchor Occupancy %			Avg Comp Sales ⁽¹⁾	Total Occupancy %			Non- Anchor Occupancy %
Top 6 Malls
Willow Grove Park		6.3	%	n/a		96.6	%		94.5	%		760		97.1	%		95.0	%	n/a		(0.5	%)		(0.5	%)
Cherry Hill Mall		13.6	%	n/a		93.0	%		91.7	%		725		98.3	%		97.9	%	n/a		(5.3	%)		(6.2	%)
Woodland Mall		6.4	%	n/a		88.9	%		87.0	%		635		98.7	%		98.4	%	n/a		(9.8	%)		(11.4	%)
Lehigh Valley Mall		6.6	%	n/a		88.0	%		80.6	%		601		90.4	%		84.1	%	n/a		(2.4	%)		(3.5	%)
Mall at Prince Georges		7.9	%	n/a		83.0	%		97.9	%		555		99.0	%		98.0	%	n/a		(16.0	%)		(0.1	%)
Springfield Town Center		10.7	%	n/a		90.2	%		86.8	%		555		94.2	%		92.3	%	n/a		(4.0	%)		(5.5	%)
		51.4	%	n/a		89.6	%		89.1	%		646		96.0	%		94.0	%	n/a		(6.4	%)		(4.9	%)

Malls 7-12
Dartmouth Mall		4.9	%	n/a		97.7	%		96.7	%		543		99.6	%		99.4	%	n/a		(1.9	%)		(2.7	%)
Jacksonville Mall		4.8	%	n/a		99.4	%		98.8	%		508		99.0	%		98.0	%	n/a		0.4	%		0.8	%
Magnolia Mall		3.6	%	n/a		79.2	%		94.5	%		471		99.7	%		99.4	%	n/a		(20.5	%)		(4.9	%)
Capital City Mall		6.1	%	n/a		98.1	%		97.2	%		453		99.5	%		99.3	%	n/a		(1.4	%)		(2.1	%)
Patrick Henry Mall		4.8	%	n/a		96.6	%		95.0	%		452		96.8	%		95.4	%	n/a		(0.2	%)		(0.4	%)
Viewmont Mall		4.6	%	n/a		97.0	%		93.7	%		438		99.7	%		99.4	%	n/a		(2.7	%)		(5.7	%)
		28.8	%	n/a		94.2	%		95.9	%		471		99.1	%		98.5	%	n/a		(4.9	%)		(2.6	%)

Malls 13-18
Valley Mall		4.8	%	n/a		98.7	%		97.0	%		425		99.4	%		98.9	%	n/a		(0.7	%)		(1.9	%)
Moorestown Mall		1.9	%	n/a		82.5	%		89.3	%		411		93.8	%		85.5	%	n/a		(11.3	%)		3.8	%
Springfield Mall		1.5	%	n/a		82.9	%		82.9	%		406		91.5	%		91.5	%	n/a		(8.6	%)		(8.6	%)
Cumberland Mall		3.3	%	n/a		91.3	%		85.8	%		389		88.9	%		81.8	%	n/a		2.4	%		4.0	%
Francis Scott Key Mall		3.9	%	n/a		91.6	%		86.8	%		375		92.5	%		88.3	%	n/a		(0.9	%)		(1.5	%)
Plymouth Meeting Mall		4.1	%	n/a		82.4	%		74.0	%		355		87.5	%		81.2	%	n/a		(5.1	%)		(7.2	%)
		19.6	%	n/a		88.4	%		85.0	%		395		92.4	%		87.0	%	n/a		(4.0	%)		(2.0	%)

All Core Malls		99.8	%	n/a		90.3	%		89.4	%		539		95.5	%		92.9	%	n/a		(5.2	%)		(3.5	%)

Non-Core Malls
Valley View Mall ⁽³⁾		0.0	%	n/a								705		93.9	%		91.0	%	n/a		(93.9	%)		(91.0	%)
Exton Square Mall		0.2	%	n/a		51.3	%		48.4	%		317		59.2	%		65.8	%	n/a		(7.9	%)		(17.4	%)
All Non-Core Malls		0.2	%	n/a		51.3	%		48.4	%		342		63.1	%		74.9	%	n/a		(11.8	%)		(26.5	%)

All Malls		100.0	%	n/a		87.9	%		87.5	%		518		92.5	%		91.6	%	n/a		(4.3	%)		(1.7	%)

(1)	Average comp sales are not reported due to COVID-19 related mall closures impacting 2020.

(2)	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.

(3)	In August of 2020 the company derecognized the assets of Valley View Mall as a loss of control of the property. We still recognize the mortgage balance of $27.2 million until the foreclosure process is complete.

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants

December 31, 2020

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, Lady Foot Locker, Nike Yardline, Footaction Flight 23	41		8		49			4.6	%
L Brands, Inc.	Bath & Body Works, Pink, Victoria's Secret	32		6		38			4.0	%
Signet Jewelers Limited	Kay Jewelers, Piercing Pagoda, Totally Pagoda, Zales Jewelers, Silver & Gold Connection	47		10		57			3.1	%
Dick's Sporting Goods, Inc.	Dick's Sporting Goods	11		1		12			2.9	%
American Eagle Outfitters, Inc.	Aerie, American Eagle Outfitters	15		5		20			2.4	%
Express, Inc	Express, Express Factory Outlet, Express Men	11		4		15			2.0	%
Dave & Buster's, Inc.	Dave & Buster's	3			1	4			1.7	%
Macy's	Bloomingdale's, Macy's	12		2		14			1.7	%
Gap, Inc.	Banana Republic, Gap/Gap Kids/Gap Outlet, Old Navy, Old Navy Outlet, Banana Republic Factory Store	11		8		19			1.7	%
Cineworld Group	Regal Cinemas	4			-	4			1.6	%
Genesco Inc.	Johnston & Murphy, Journeys, Journeys Kidz, Underground by Journeys	23		5		28			1.6	%
Home Depot	Home Depot	1		2		3			1.6	%
J.C. Penney Company, Inc.	JC Penney, Penneys Firestone	10		1		11			1.5	%
Luxottica Group S.p.A.	Lenscrafters, Pearle Vision, Sunglass Hut, Sunglass Hut Outlet	22		7		29			1.3	%
Darden Concepts, Inc.	Bahama Breeze, Capital Grille, Olive Garden, Seasons 52, Yard House	8			-	8			1.3	%
Shoe Show, Inc.	Shoe Department, Shoe Dept. Encore, Shoe Show	20		2		22			1.2	%
H&M Hennes & Muritz L.P.	H & M	12			1	13			1.1	%
Sycamore Partners	Hot Topic, Talbots, Torrid	24			5	29			1.1	%
AMC Entertainment Holdings, Inc.	AMC	3			1	4			1.1	%
The Children's Place, Inc.	The Children's Place	13		3		16			1.0	%
Total Top 20 Tenants		323		72		395			38.4	%
Total Leases			1,318	372			1,690		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 December 31, 2020

Pennsylvania Real Estate Investment Trust

Lease Expirations as of December 31, 2020

(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
2020 and Prior		115		265,557		3.2	%		13,769		12,220		4.3	%		51.85
2021		218		725,166		8.9	%		28,461		24,868		8.7	%		39.25
2022		234		776,226		9.5	%		34,391		30,096		10.6	%		44.31
2023		195		1,110,992		13.6	%		39,865		34,902		12.2	%		35.88
2024		174		747,572		9.1	%		37,568		33,717		11.8	%		50.25
2025		178		1,019,718		12.5	%		42,904		33,660		11.9	%		42.07
2026		125		718,281		8.8	%		33,296		25,822		9.1	%		46.36
2027		90		640,582		7.8	%		24,680		22,624		7.9	%		38.53
2028		74		611,236		7.5	%		22,522		21,140		7.4	%		36.85
2029		80		599,830		7.3	%		23,813		19,065		6.7	%		39.70
Thereafter		101		966,751		11.8	%		33,859		26,825		9.4	%		35.02
Total/Average		1,584		8,181,911		100.0	%	$	335,128	$	284,939		100.0	%	$	40.96

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
2020 and prior
2021		3		258,396		5.5	%		1,666		1,150		3.6	%		6.45
2022		6		897,867		19.2	%		3,475		3,121		9.8	%		3.87
2023		3		348,592		7.5	%		1,895		1,895		5.9	%		5.44
2024		5		702,674		15.2	%		6,988		6,988		21.8	%		9.94
2025		5		720,381		15.4	%		2,900		2,900		9.1	%		4.03
2026		4		299,359		6.4	%		2,968		2,266		7.1	%		9.91
2028		9		982,424		21.1	%		6,819		6,819		21.4	%		6.94
2029		1		65,155		1.4	%		2,210		2,210		6.9	%		33.92
Thereafter		6		389,466		8.3	%		4,585		4,585		14.4	%		11.77
Total/Average		42		4,664,314		100.0	%	$	33,507	$	31,935		100.0	%	$	7.18

(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 December 31, 2020

		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	2028		102,825	Macy's		120,000		104,806		174,169		9,569		623,348
		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		239,234		399,484		58,062		1,313,665
						Macy's		304,600
Cumberland Mall	Vineland, NJ	Burlington	2021		80,983	BJ's Wholesale Club		117,889		168,249		143,243		59,054		951,217
		The Home Depot	2024		132,013	Boscov's		155,341
		Dick's Sporting Goods	2028		50,000
		Regal Cinemas	2024							44,445
Dartmouth Mall	Dartmouth, MA	JCPenney	2024		100,020	Macy's		140,000		119,050		149,780		10,777		608,455
		Burlington	2030		43,840
		AMC Theaters	2026							44,988
Francis Scott Key Mall	Frederick, MD	JCPenney	2026		101,293	Macy's		139,333		124,272		166,446		51,890		754,267
		Sears	2023		120,883
		Dick's Sporting Goods	2025							50,150
Jacksonville Mall	Jacksonville, NC	Belk	2026		72,510					123,079		125,043		2,908		493,145
		JCPenney	2025		51,812
		Sears	2021		117,793
Lehigh Valley Mall	Allentown, PA	Boscov's	2022		164,694	JCPenney		207,292		174,331		316,322		118,131		1,192,770
		Macy's	2022		212,000
Magnolia Mall	Florence, SC ⁽²⁾	Belk	2028		115,793					96,175		134,202		122,947		591,860
		Best Buy	2023		32,054
		Dick's Sporting Goods	2023							45,000
		Burlington	2028							45,689
Moorestown Mall	Moorestown, NJ ⁽⁴⁾	Boscov's	2028		202,765					110,814		183,022		166,718		955,239
		Sears	2022		205,591
		Regal Cinemas	2028							57,843
		HomeSense	2028		28,486
Patrick Henry Mall	Newport News, VA	Dick's Sporting Goods	2022		50,250	Dillard's		144,157		60,095		223,177		14,940		717,831
		JCPenney	2025		85,212	Macy's		140,000
Plymouth Meeting Mall	Plymouth Meeting, PA	Boscov's	2028		188,429					148,275		169,270		160,058		911,879
		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		164,119		38,140		610,735
						Target		195,899
Springfield Town Center	Springfield, VA	Macy's	2025		252,245	JCPenney		209,144		168,618		300,378		96,505		1,373,955
						Target		180,841
		Dick's Sporting Goods	2025							53,891
		Nordstrom Rack	2025							33,107
		Regal Cinemas	2029							49,788
		Saks OFF 5th	2026							29,438
The Mall at Prince Georges	Hyattsville, MD ⁽³⁾	Macy's	2023		195,655					177,988		263,079		158,153		930,061
		Target	2024		135,186

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2020

		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

Valley Mall	Hagerstown, MD	JCPenney	2024		157,455					95,023		207,757		11,090		827,735
		Belk	2028		123,094
		Regal Cinemas	2029							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		65,843		161,201		16,692		689,226
		Dick's Sporting Goods/Field & Stream	2028		90,000
		HomeGoods	2027							22,577
Willow Grove Park	Willow Grove, PA	Macy's	2022		225,000	Bloomingdale's		237,537		129,219		255,908		22,614		1,086,194
		Nordstrom Rack	2022		40,332	Sears⁽¹⁾		175,584
Woodland Mall	Grand Rapids, MI	Von Maur	2119		86,165	JCPenney		254,905		115,714		303,040		62,782		979,922
						Macy's		157,316
Total Core Malls					4,244,462			3,385,924		2,960,448		3,839,640		1,181,030		15,611,504

Other Malls and Retail Properties
Exton Square Mall	Exton, PA	Boscov's	2024		178,000	Macy's		181,200		31,652		146,657		394,265		990,145
		Round 1	2026		58,371
Fashion District Philadelphia	Philadelphia, PA ⁽⁵⁾	Burlington	2032		85,162					179,365		137,306		261,628		826,532
		AMC	2034							36,535
		Round 1	2029							58,080
		City Winery	2037							29,762
		H&M	2030							38,694
Gloucester Premium Outlets	Blackwood, NJ									49,479		261,666		65,826		376,971
Metroplex Shopping Center	Plymouth Meeting, PA	Giant Food Store	2026		67,185	Lowe's		163,215		304,209		43,387		37,505		777,695
						Target		137,514
		Saks OFF 5th	2026							24,680
The Court at Oxford Valley	Fairless Hills, PA	Best Buy	2021		59,620	BJ's Wholesale Club		116,872		249,597		37,570		60,118		703,909
						The Home Depot		130,751
		Dick's Sporting Goods	2021							49,381
Valley View Center	La Crosse, WI	Dick's Sporting Goods	2025							45,000		15,272		-		60,272
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					448,338			929,142		1,344,520		657,065		819,342		4,198,407
Total Portfolio					4,692,800			4,315,066		4,304,968		4,496,705		2,000,372		19,809,911

(1) Approximately 69,000 square feet of this space has been subleased to Primark.

(2) Approximately 104,000 square feet of this space is a vacant JC Penney that has been leased to Tilt Studios.

(3) Approximately 148,000 square feet of this space is a vacant JC Penney.

(4) Approximately 121,000 square feet of this space is a vacant Lord & Taylor that is currently occupied by a State of New Jersey Vaccine Megasite.

(5) Approximately 95,000 square feet of this space is a vacant Century 21.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate - Consolidated Properties

(in thousands)

	December 31, 2020
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Debt⁽¹⁾
Core Malls
Capital City Mall	$	137,239	$	-	$	56,624	$	80,615	$	-
Cherry Hill Mall		488,095		253		278,879		209,469		262,413
Cumberland Mall		84,076		-		34,338		49,738		40,992
Dartmouth Mall		91,117		1		48,014		43,104		56,726
Francis Scott Key Mall		98,197		-		46,318		51,879		68,469
Jacksonville Mall		94,044		-		43,332		50,712		-
Magnolia Mall		108,028		-		53,696		54,332		-
Moorestown Mall		190,690		34		81,388		109,336		-
Patrick Henry Mall		156,566		-		77,847		78,719		87,058
Plymouth Meeting Mall		232,417		8,585		108,911		132,091		-
The Mall at Prince Georges		144,978		2,375		70,295		77,058		-
Springfield Town Center		496,546		-		82,082		414,464		-
Valley Mall		147,244		1,229		53,666		94,807		-
Viewmont Mall		121,831		-		54,334		67,497		67,185
Willow Grove Park		234,642		33,701		114,128		154,215		152,852
Woodland Mall		285,528		107		88,547		197,088		122,580
Total Core Malls		3,111,238		46,285		1,292,399		1,865,124		858,276

Non-Core Malls
Exton Square Mall		49,002		-		13,495		35,507		-
Valley View Center ⁽²⁾		8,296		-		2,533		5,763		27,212
Total Non-Core Malls		57,298		-		16,028		41,270		27,212

Total Malls	$	3,168,536	$	46,285	$	1,308,427	$	1,906,394	$	885,489
Other Properties
Land held for development		5,516		-		-		5,516		-
Total Other Properties	$	5,516	$	-	$	-	$	5,516	$	-
Total Investment in Real Estate	$	3,174,052	$	46,285	$	1,308,427	$	1,911,910	$	885,489

Land parcels held for sale
Moorestown Mall		434		-		-		434		-
Woodland Mall		1,054		-		-		1,054		-
Total held for sale	$	1,488	$	-	$	-	$	1,488	$	-

(1)	Refer to page 28 for further debt information.

(2)

The mortgage of $27.2 million is outstanding on Valley View Mall. In the third quarter the Company derecognized the assets of Valley View Mall as a result of the property being assigned to a special servicer. The Company will continue to recognize the mortgage until the foreclosure process is complete.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate – Equity Method Investments at Ownership Share

(in thousands)

	December 31, 2020
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation			Net Real Estate		Debt⁽¹⁾
Unconsolidated Malls
Fashion District Philadelphia	$	338,791	$	5,806	$	(20,358	)	$	324,239	$	150,500
Lehigh Valley Mall		55,500		770		(30,007	)		26,263		94,573
Springfield Mall		58,732		60		(25,544	)		33,248		29,742
Total Unconsolidated Malls	$	453,023	$	6,636	$	(75,909	)	$	383,750	$	274,816

Unconsolidated Other Retail Properties
Gloucester Premium Outlets		27,944		100		(5,778	)		22,266		21,500
Metroplex Shopping Center		44,394		3,775		(27,764	)		20,405		36,433
The Court at Oxford Valley		28,411		8		(13,365	)		15,054		26,081
Red Rose Commons		14,626		-		(5,529	)		9,097		12,544
Total Unconsolidated Other Retail Properties	$	115,375	$	3,883	$	(52,436	)	$	66,822	$	96,558
Unconsolidated Property Under Development
Pavilion at Market East		6,346		814		(2,405	)		4,755	$	3,059
Total Investment in Real Estate	$	574,744	$	11,333	$	(130,750	)	$	455,327	$	374,433

(1)	Refer to page 28 for further debt information.

Pennsylvania Real Estate Investment Trust

Capital Expenditures

Three Months and Year Ended December 31, 2020

(in thousands)

	Three Months Ended December 31, 2020						Year Ended December 31, 2020
	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⁾	$	197	$	204	$	401	$	21,193	$	26,018	$	47,211
Tenant allowances		2,173		1,546		3,719		13,021		4,830		17,851
Recurring capital expenditures:
CAM expenditures		704		80		784		2,264		399		2,663
Non-CAM expenditures		184		-		184		654		51		705
Total recurring capital expenditures		888		80		968		2,918		450		3,368
Total	$	3,258	$	1,830	$	5,088	$	37,132	$	31,298	$	68,430

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

Pennsylvania Real Estate Investment Trust

Debt Analysis as of December 31, 2020

(in thousands)

	Outstanding Debt
	Fixed Rate ⁽¹⁾			% of Total Indebtedness			Variable Rate			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable ⁽²⁾	$	871,635			39.0	%	$	13,854			0.6	%	$	885,489			39.6	%
Unconsolidated mortgage loans payable ⁽³⁾		199,374			8.9	%		24,559			1.1	%		223,933			10.0	%
Consolidated Term Loans ⁽⁴⁾		550,000			24.6	%		372,120			16.6	%		922,120			41.2	%
Unconsolidated Term Loan ⁽⁵⁾		50,000			2.2	%		100,500			4.5	%		150,500			6.7	%
2020 Revolving Facility		-			0.0	%		54,830			2.5	%		54,830			2.5	%
Total Outstanding Debt	$	1,671,009			74.7	%	$	565,863			25.3	%	$	2,236,872			100.0	%
Average Stated Interest Rate		5.99	%					6.79	%					6.20	%

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

(2)	Excludes deferred financing costs of $986.

(3)	Reflects our share of mortgage debt of equity method investees. Excludes our share of deferred financing costs of $274.

(4)	Excludes deferred financing costs of $13,647.

(5)	Reflects our share of Term Loan debt of equity method investee. Excludes our share of deferred financing costs of $1,324.

		Average Debt Balance
		Mortgage Debt			Revolving Facility			Term Loans			Total
Beginning Balance	9/30/2020	$	1,117,280		$	375,000		$	711,000			2,203,280
Bridge Loan Borrowing	10/14/2020		-			-			7,500			7,500
Bridge Loan Borrowing	10/21/2020		-			-			25,000			25,000
2018 Credit Facility & 7-year Term Loan Repayment	12/10/2020		-			(375,000	)		(593,000	)		(968,000	)
2020 Credit Facility Borrowing	12/10/2020		-			55,000			919,735			974,735
2020 CF Paydown	12/22/2020		-			(170	)		(396	)		(566	)
Second Lien PIK Interest	12/31/2020		-			-			2,781			2,781
Mortgage loan amortization, including our share of debt of equity method investees	12/31/2020		(7,858	)		-			-			(7,858	)
Ending Balance	12/31/2020	$	1,109,422		$	54,830		$	1,072,620		$	2,236,872
Weighted Average Balance		$	1,115,172		$	288,462		$	600,088		$	2,228,605

(continued next page)

Pennsylvania Real Estate Investment Trust

Debt Analysis as of December 31, 2020

(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
2021	$	21,793	$	(353	)	$	257,588	$	-	$	-	$	(7,834	)	$	271,193
2022		17,390		(301	)		377,489		54,830		922,120		(7,137	)		1,364,391
2023		10,018		(195	)		86,801		-		100,500		-			197,124
2024		9,291		(185	)		-		-		-		-			9,106
2025		7,234		(175	)		237,644		-		-		-			244,703
Thereafter		4,386		(324	)		79,789		-		50,000		-			133,850
	$	70,111	$	(1,533	)	$	1,039,311	$	54,830	$	1,072,620	$	(14,971	)	$	2,220,368

(1)	The weighted average period to total debt maturity is 2.33 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.

Weighted Average Mortgage Interest Rates
Year	Balance ⁽¹⁾		Interest Rate
2021	$	258,662		3.96	%
2022		393,374		4.08	%
2023		93,160		4.37	%
2024		-		0.00	%
2025		269,653		4.10	%
Thereafter		94,573		4.06	%
Total	$	1,109,422		4.08	%

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

Pennsylvania Real Estate Investment Trust

Debt Schedule as of December 31, 2020

(in thousands)

	Debt			Interest Rate			Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Fixed Rate Mortgage Loans
Valley View Mall ⁽¹⁾	$	27,212			5.95	%	$	-	$	27,212	July 2020	July 2020
Viewmont Mall ⁽²⁾		57,000			4.37	%		2,491		-	March 2021	March 2021
Woodland Mall ⁽²⁾		122,580			3.02	%		5,376		122,020	April 2021	April 2021
Red Rose Commons ⁽³⁾		12,544			5.14	%		978		12,379	July 2021	July 2021
The Court at Oxford Valley ⁽³⁾		26,081			5.56	%		2,058		25,782	July 2021	July 2021
Cumberland Mall		40,992			4.40	%		3,433		38,157	August 2022	August 2022
Cherry Hill Mall		262,413			3.90	%		16,980		251,120	September 2022	September 2022
Francis Scott Key Mall ⁽²⁾		64,800			5.52	%		3,574		-	January 2022	January 2023
Dartmouth Mall		56,726			3.97	%		3,825		53,299	April 2023	April 2023
Metroplex Shopping Center ⁽³⁾		36,433			5.00	%		2,818		33,502	October 2023	October 2023
Patrick Henry Mall		87,058			4.35	%		5,748		77,591	July 2025	July 2025
Springfield Mall ⁽³⁾		29,742			4.45	%		1,964		26,299	October 2025	October 2025
Willow Grove Park		152,852			3.88	%		9,599		133,754	October 2025	October 2025
Lehigh Valley Mall ⁽³⁾		94,573			4.06	%		5,768		79,789	November 2027	November 2027
Total Fixed Rate Mortgage Loans	$	1,071,009			4.15	%	$	64,612	$	880,904

Variable Rate Mortgage Loans
Pavilion East Associates ⁽³⁾	$	3,059			3.04	%	$	193	$	3,009	February 2021	February 2021
Viewmont Mall		10,185			2.50	%		255		67,185	March 2021	March 2021
Gloucester Premium Outlets ⁽³⁾		21,500			1.66	%		356		21,500	March 2022	March 2023
Francis Scott Key Mall		3,669			2.75	%		101		66,712	January 2022	January 2023
Total Variable Rate Mortgage Loans	$	38,413			2.10	%	$	905	$	158,406
Total Mortgage Loans	$	1,109,422			4.08	%	$	65,517	$	1,039,311

Consolidated Mortgage Loans	$	885,489			4.04	%	$	51,382	$	837,052
Consolidated Deferred Financing Fees		(986	)	n/a			n/a		n/a
Unconsolidated Mortgage Loans		223,933			4.25	%		14,135		202,259
Unconsolidated Deferred Financing Fees ⁽³⁾		(547	)	n/a			n/a		n/a
First Lien Term Loan		384,092			8.20	%		31,680		384,092	December 2022	December 2023
Second Lien Term Loan		538,027			8.94	%		53,020		538,027	December 2022	December 2023
2018 FDP Term Loan		100,500			4.00	%		4,020		100,500	January 2023	January 2023
Term Loan Deferred Financing Fees		(14,971	)	n/a			n/a		n/a
First Lien Revolver		54,830			4.00	%		2,193		54,830	December 2022	December 2022
2020 FDP Term Loan		50,000			15.00	%		7,500		50,000	December 2027	December 2027
Total	$	2,220,368			6.20	%	$	163,931	$	2,166,761

(1)

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

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

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios

	December 31, 2020
Debt Yield Ratio
Maintain a minimum Debt Yield Ratio (Senior) of 11.35% from and after June 30, 2021	(1)
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	(1)
Liquidity
Maintain minimum liquidity of at least $25.0 million, to be comprised of unrestricted cash held in certain deposit accounts subject to control agreements	$91.6 million

(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 December 31, 2020, 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, several of which only come into effect on June 30, 2021.

Pennsylvania Real Estate Investment Trust

Forward Looking Statements

FORWARD LOOKING STATEMENTS

This Quarterly Supplemental and Operating Information contains certain forward-looking statements that can be identified by the use of words such as “anticipate,” “believe,” “estimate,” ”expect,” “intend,” “may,” “project,” and similar expressions. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect our current views about future events, achievements or results and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, our business might be materially and adversely affected by 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 actions in response, which have and may continue to exacerbate many of the risks listed below;

•

changes in the retail and real estate industries, including bankruptcies, consolidation and store closings, particularly among anchor tenants;

•

current economic conditions, including current high rates of unemployment and its effects on consumer confidence and spending, 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;

•

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 or our ability to obtain prices we seek;

•

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 in the section entitled “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019 and in our Quarterly Report on Form 10-Q for the quarterly period ending September 30, 2020 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 years ended December 31, 2020 and 2019, respectively, 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, 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.

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, general and administrative expenses, provision for employee separation expenses, interest expense, depreciation and amortization, insurance recoveries, gain/loss on debt extinguishment, gain on derecognition of property, impairment of assets, gains on sales of real estate by equity method investees, equity in loss/income of partnerships, loss on remeasurement of assets by equity method investee, gain on sale of non operating real estate, gain/loss on sale of real estate, impairment of development land parcel, project costs and other expenses and reorganization expenses.

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. In 2018, Wyoming Valley Mall was designated as non-core and subsequently conveyed to the lender of the mortgage loan secured by that property in 2019. In 2019, Exton Square Mall and Valley View Mall were designated as non-core and are excluded from Same Store NOI. 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.