pei-ex991_81.htm

EX-99.1 2 pei-ex991_81.htm EX-99.1 pei-ex991_81.htm

Exhibit 99.1

Supplemental Financial and Operating Information

June 30, 2021

www.preit.com

NYSE: PEI

NYSE: PEIPRB, PEIPRC, PEIPRD

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

June 30, 2021


Table of Contents
Introduction

Company Information	1

Earnings Release	2

Changes in Funds from Operations for the Three and Six Months Ended June 30, 2021	5

Market Capitalization and Capital Resources	6

Operating Results

Statements of Operations – Three and Six Months Ended June 30, 2021 and 2020	7

Computation of Earnings Per Share	8

Reconciliation of Net Operating Income and EBITDAre (Non-GAAP Measures) – Three and Six Months Ended June 30, 2021 and 2020	9

Reconciliation of Net Loss (GAAP Measure) to Net Operating Income from Consolidated Properties (Non-GAAP Measure) - Three Months Ended June 30, 2021 and 2020	10

Reconciliation of Equity in Income (Loss) of Partnerships (GAAP Measure) to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure) – Three Months Ended June 30, 2021 and 2020	11

Reconciliation of Net Loss (GAAP Measure) to Net Operating Income from Consolidated Properties (Non-GAAP Measure) - Six Months Ended June 30, 2021 and 2020	12

Reconciliation of Equity in Income (Loss) of Partnerships (GAAP Measure) to Net Operating Income from Equity Method Investments, at Ownership Share (Non-GAAP Measure) - Six Months Ended June 30, 2020 and 2019	13

Reconciliation of Net Loss (GAAP Measure) to Funds From Operations and Funds Available for Distribution (Non-GAAP Measures) – Three and Six Months Ended June 30, 2021 and 2020	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 Six Months Ended June 30, 2021	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 and Six Months Ended June 30, 2021	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 (REIT) that owns and manages distinctive real estate in high barrier-to-entry markets at the forefront of enabling communities through the built environment. PREIT’s robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in densely-populated, high barrier-to-entry markets with tremendous opportunity to create vibrant multi-use destinations. 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 Second Quarter 2021 Results

Year-to-Date Leasing Pipeline Exceeds That of Past Five Years

Liquidity Profile Continues to Improve; Total Liquidity of $104.9 Million at End of Second Quarter

June Sales for Comparable Tenants Increase 16% over June 2019

Total Core Mall Leased Space Improved to 92.6%

Philadelphia, August 5, 2021 - PREIT (NYSE: PEI) today reported results for the three and six months ended June 30, 2021. 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 June 30,						Six Months Ended June 30,
(per share amounts)	2021			2020			2021			2020
Net loss - basic and diluted	$	(0.40	)	$	(0.38	)	$	(1.04	)	$	(0.64	)
FFO	$	0.10		$	(0.06	)	$	(0.04	)	$	0.08
FFO, as adjusted	$	0.03		$	(0.06	)	$	(0.12	)	$	0.09

“We believe this quarter marks the inflection point in the turnaround of our business and the evolution of PREIT. It is now clear that the work we have done in creating a stronger portfolio by selling off 19 lower-productivity properties, repositioning 19 anchor boxes with over 3 dozen new tenants and securing a differentiated tenant base is driving results. Our portfolio is generating tremendous momentum with strong same store NOI growth, that is expected to continue through the balance of the year, tenant sales ahead of pre-pandemic levels and a leasing pipeline that exceeds any of the past five years’ activity,” said Joseph F. Coradino, Chairman and CEO of PREIT. “Consumers are demonstrating their desire to return to in-person shopping and are attracted to the mix of tenants at our properties that meet the changing needs of today’s consumer.”

•

Same Store NOI, excluding lease termination revenue, increased 53.9% for the three months ended June 30, 2021 compared to the three months ended June 30, 2020.

•

For the quarter, results were driven by an increase in real estate revenue of $17.7 million primarily due to prior year pandemic-related store closings and rent abatements and the increase in credit losses for challenged tenants for the three months ended June 30, 2020, partially offset by reduced expense recoveries resulting from temporary rent restructuring.

•

Second quarter 2020 Same Store NOI would have been $43.4 million when adjusted for the $10.5 million in rental abatements granted. Quarterly Same Store NOI grew by 16.6% over this adjusted amount.

•

For the fourth straight quarter, collections improved with cash collections increasing to 127% of billings for the second quarter of 2021. We collected 88% of billed second quarter 2021 rents, an increase from receipts of 81%, 73% and 61% of billed rents as of the end of each of the past three quarters, respectively. Momentum continued in July with 91.4% of billed rents collected, or 126% on a cash collections basis.

•

The Company’s accounts receivable balance decreased again in the second quarter of 2021, down to $37.8 million as of June 30, 2021 from $54.5 million as of December 31, 2020.

•

As a result of strong collections, net cash generated from operating activities totaled $34.7 million for the six months ended June 30, 2021 compared to $3.7 million used in the six months ended June 30, 2020.

•

Robust leasing activity is driving increased occupancy with Core Mall total occupancy increasing 100 basis points, sequentially, to 90.2%. Core Mall non-anchor occupancy increased 80 basis points, sequentially, to 87.8%.

•

Total Core Mall leased space, at 92.6%, exceeds occupied space by 240 basis points, and total non-anchor leased space, at 90.4%, exceeds occupied space by 260 basis points when factoring in executed new leases slated for future occupancy, demonstrating the rapid pace of leasing activity.

•

Sales grew at over 80% of properties, with comparable tenants, meaning that reported sales in both periods, reporting sales growth of 16% over in June 2021 when compared to June of 2019.

•

Average renewal spreads for the six months ended June 30, 2021 declined by 1.0%. COVID-related rent concessions impacted quarterly renewal spread results for tenants under 10K square feet by 370 basis points

Leasing and Redevelopment

•

500,000 square feet of leases are signed for future openings, which is expected to contribute annual gross rent of $10.8 million.

•

Leasing momentum continues to build with transactions executed or in the process of being negotiated for 1.2 million square feet of occupancy thus far in 2021.

•

Construction is underway for Aldi to open its first store in the portfolio at Dartmouth Mall in Dartmouth, MA in 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 in Hyattsville, MD with an anticipated opening in Q1 2022.

•

Tilt Studios is under construction to replace JC Penney at Magnolia Mall in Florence, SC. The family-focused destination is expected to open in Q3 2021.

•

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

•

The Company executed a rezoning agreement to allow for the addition of up to 1,065 multifamily units and a hotel at Moorestown Mall.

•

A lease has been executed with Turn 7 to occupy the former Lord & Taylor space at Moorestown Mall. Turn 7 will open this Fall selling ever-changing overstocked merchandise from online channels at a discount, in a fast-paced, fun atmosphere.

•

A lease is nearly finalized with an entertainment destination to replace the former JC Penney at Willow Grove Park, adding family entertainment to this locally-loved destination shopping experience.

Primary Factors Affecting Financial Results for the Three Months Ended March 31, 2021 and 2020

•

Net loss attributable to PREIT common shareholders was $31.4 million (which takes into consideration the accrual of preferred dividends that accumulated during the quarter but have not been paid), or $0.40 per basic and diluted share for the three months ended June 30, 2021, compared to net loss attributable to PREIT common shareholders of $29.2 million, or $0.38 per basic and diluted share for the three months ended June 30, 2020.

•

Same Store NOI, including lease terminations, increased by $20.7 million, or 62.3%. The increase is primarily due to tenant store closings and rent abatements and increased credit losses that occurred in the prior year, partially offset by a reduction in expense recoveries resulting from tenant restructuring transactions.

•

Non-Same Store NOI increased by $0.5 million, primarily due to high credit losses in the prior year, partially offset by the transfer of property at Valley View Mall during the third quarter of 2020.

•

FFO for the three months ended June 30, 2021 was $0.10 per diluted share and OP Unit compared to $(0.06) per diluted share and OP Unit for the three months ended June 30, 2020. Adjustments to FFO in the second quarter of 2021 were primarily related to $(0.06) per share from gain on debt extinguishment and $(0.01) per share from gain on hedge ineffectiveness.

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 six months ended June 30, 2021 and 2020 is included on page 5.

Liquidity and Financing Activities

As of June 30, 2021, the Company had $75.2 million available under its First Lien Revolving Credit Facility. The Company’s corporate cash balances, when combined with available credit, provides total liquidity of $104.9 million.

During the quarter, the Company entered into over $175 million of mortgage loans, in the aggregate and reflecting the Company’s share. The mortgages are secured by Viewmont Mall, Francis Scott Key Mall, two of the Company’s joint venture open-air assets, Court at Oxford Valley and Red Rose Commons and a developable land parcel. These refinancing transactions extended the Company’s nearest-term maturities.

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 approximately 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.

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 Thursday
August 5, 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 4436069, 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 and Six Months Ended June 30, 2021 as compared to the Three and Six Months Ended June 30, 2020

(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 June 30, 2021			Per Diluted Share and OP Unit			Six Months Ended June 30, 2021			Per Diluted Share and OP Unit
Funds from Operations, as adjusted June 30, 2020	$	(4,473	)	$	(0.06	)	$	6,800		$	0.08

Changes - Q2 2020 to Q2 2021

Contribution from anchor replacements and new box tenants		662			0.01			1,316			0.02
Impact from bankruptcies		386			0.01			622			0.01
Other leasing activity, including base rent and net CAM and real estate tax recoveries		7,942			0.10			(759	)		(0.01	)
Lease termination revenue		406			0.01			432			0.01
Credit losses		6,311			0.08			7,006			0.09
Other		(167	)		-			(801	)		(0.01	)
Same Store NOI from unconsolidated properties		5,118			0.07			2,742			0.04
Same Store NOI		20,658			0.26			10,558			0.14
Non Same Store NOI		521			0.01			(1,074	)		(0.02	)
Dilutive effect of asset sales		-			-			-			-
General and administrative expenses		(2,966	)		(0.04	)		(4,102	)		(0.05	)
Capitalization of leasing costs		(140	)		-			(881	)		(0.01	)
Other		6,550			0.08			12,683			0.16
Interest expense, net		(17,546	)		(0.22	)		(33,695	)		(0.43	)
Increase in weighted average shares		-			0.01			-			0.01
Funds from Operations, as adjusted June 30, 2021		2,604			0.03			(9,711	)		(0.12	)
Provision for employee separation expense		(149	)		-			(240	)		(0.01	)
Gain on hedge ineffectiveness		494			0.01			1,797			0.03
Gain on debt extinguishment, net		4,587			0.06			4,587			0.06
Insurance recoveries, net		670			0.01			670			0.01
Reorganization expenses		(69	)		-			(267	)		(0.01	)
Funds from Operations June 30, 2021	$	8,137		$	0.10		$	(3,164	)	$	(0.04	)

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands)

	June 30, 2021			December 31, 2020
MARKET CAPITALIZATION

EQUITY CAPITALIZATION
Common Shares Outstanding		79,260			79,537
OP Units Outstanding		1,976			1,976
Total Common Shares and OP Units Outstanding		81,236			81,513
Equity Market Capitalization—Common Shares and OP Units	$	202,277		$	81,513
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	$	586,027		$	465,266


DEBT CAPITALIZATION
Secured Debt Balance ⁽¹⁾	$	2,242,368		$	2,236,872
Debt Capitalization		2,242,368			2,236,872
TOTAL MARKET CAPITALIZATION	$	2,828,395		$	2,702,138

Equity Capitalization/Total Market Capitalization		20.7	%		17.2	%
Debt Capitalization/Total Market Capitalization		79.3	%		82.8	%

CAPITAL RESOURCES
Cash and Cash Equivalents	$	61,908		$	55,086
Revolving Facility		130,000			130,000
Amount Outstanding		(54,830	)		(54,830	)
Available First Lien Revolving Facility ⁽²⁾		75,170			75,170
Term Loans		1,096,400			1,072,620
Amount Borrowed		(1,096,400	)		(1,072,620	)
Available Term Loans		-			-
TOTAL	$	137,078		$	130,256
Shelf Registration	$	-		$	-

(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 $97.3 million and $100.5 million of secured debt from our share of the FDP Term Loan as of June 30, 2021 and December 31, 2020 and $54.4 million and $50.0 million from our share of the FDP Partnership Loan as of June 30, 2021 and December 31, 2020, respectively. As of December 10, 2020, all debt is now secured.

(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 Six Months Ended June 30, 2021 and 2020

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands of dollars)	2021			2020			2021			2020
REVENUE:
Real estate revenue:
Lease revenue	$	68,112		$	52,119		$	128,020		$	119,840
Expense reimbursements		3,887			2,976			7,786			7,280
Other real estate revenue		1,957			1,543			3,428			3,467
Total real estate revenue		73,956			56,638			139,234			130,587
Other income		162			131			288			424
Total revenue		74,118			56,769			139,522			131,011
EXPENSES:
Operating expenses:
Property operating expenses:
CAM and real estate taxes		(25,661	)		(25,213	)		(53,492	)		(52,730	)
Utilities		(2,860	)		(2,519	)		(5,824	)		(5,442	)
Other property operating expenses		(2,244	)		(1,775	)		(4,608	)		(3,872	)
Total property operating expenses		(30,765	)		(29,507	)		(63,924	)		(62,044	)
Depreciation and amortization		(29,686	)		(30,908	)		(59,525	)		(61,177	)
General and administrative expenses		(13,535	)		(10,569	)		(25,366	)		(21,264	)
Provision for employee separation expenses		(149	)		(1,040	)		(240	)		(1,113	)
Insurance recoveries, net		670			586			670			586
Project costs and other expenses		(77	)		(66	)		(179	)		(161	)
Total operating expenses		(73,542	)		(71,504	)		(148,564	)		(145,173	)
Interest expense, net ⁽¹⁾		(31,978	)		(17,182	)		(62,709	)		(34,040	)
Gain on debt extinguishment, net		4,587			—			4,587			—
Impairment of assets		(1,302	)		—			(1,302	)		—
Reorganization expenses		(69	)		—			(267	)		—
Total expenses		(102,304	)		(88,686	)		(208,255	)		(179,213	)
Loss before equity in income (loss) of partnerships, gain on sales of real estate by equity method investee, (loss) gain on sales of real estate, net, and loss on sales of interests in non operating real estate		(28,186	)		(31,917	)		(68,733	)		(48,202	)
Equity in income (loss) of partnerships ⁽²⁾		2,433			(358	)		(1,000	)		461
Gain on sales of real estate by equity method investee		1,347			—			1,347			—
(Loss) gain on sales of real estate, net		(974	)		9,300			(974	)		11,263
Loss on sales of interests in non operating real estate		—			(144	)		—			(190	)
Net loss		(25,380	)		(23,119	)		(69,360	)		(36,668	)
Less: net loss attributable to noncontrolling interest		783			746			2,017			1,262
Net loss attributable to PREIT		(24,597	)		(22,373	)		(67,343	)		(35,406	)
Less: cumulative preferred share dividends		(6,844	)		(6,844	)		(13,688	)		(13,688	)
Net loss attributable to PREIT common shareholders	$	(31,441	)	$	(29,217	)	$	(81,031	)	$	(49,094	)

(1)	Net of capitalized interest expense of $17 and $445 for the three months ended June 30, 2021 and 2020, respectively, and $147 and $1,355 for the six months ended June 30, 2021 and 2020 respectively.

(2)	Equity in income (loss) of partnerships is net of capitalized interest expense of $17 and $1,927 for the three months ended June 31, 2021 and 2020, respectively, and $120 and $1,927 for the six months ended June 30, 2021 and 2020, respectively.

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share – Three and Six Months Ended June 30, 2021 and 2020

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands, except per share amounts)	2021			2020			2021			2020
Net loss	$	(25,380	)	$	(23,119	)	$	(69,360	)	$	(36,668	)
Noncontrolling interest		783			746			2,017			1,262
Cumulative preferred share dividends		(6,844	)		(6,844	)		(13,688	)		(13,688	)
Dividends on unvested restricted shares		—			(13	)		—			(363	)
Net loss used to calculate loss per share—basic and diluted	$	(31,441	)	$	(29,230	)	$	(81,031	)	$	(49,457	)
Basic and diluted loss per share:	$	(0.40	)	$	(0.38	)	$	(1.04	)	$	(0.64	)

(in thousands of shares)
Weighted average shares outstanding—basic		78,144			77,269			77,896			77,021
Effect of common share equivalents⁽¹⁾		—			—			—			—
Weighted average shares outstanding—diluted		78,144			77,269			77,896			77,021

(1)	The Company had net losses used to calculate earnings per share for the three and six months ended June 30, 2021 and 2020. 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 Six Months Ended June 30, 2021 and 2020

(in thousands)

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

	Same Store				Change					Non Same Store				Total
(in thousands of dollars)	2021		2020		$		%			2021		2020		2021		2020
NOI from consolidated properties	$	42,617	$	27,077	$	15,540		57.4	%	$	574	$	54	$	43,191	$	27,131
NOI attributable to equity method investments, at ownership share		11,196		6,078		5,118		84.2	%		7		6		11,203		6,085
Total NOI		53,813		33,155		20,658		62.3	%		581		60		54,394		33,216
Less: lease termination revenue		3,135		217		2,918		1,344.7	%		-		-		3,135		217
Total NOI excluding lease termination revenue	$	50,678	$	32,938	$	17,740		53.9	%	$	581	$	60	$	51,259	$	32,999

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

Net Operating Income ("NOI") Reconciliation for the Six Months Ended June 30, 2021⁽¹⁾

	Same Store				Change					Non Same Store					Total
(in thousands of dollars)	2021		2020		$		%			2021			2020		2021		2020
NOI from consolidated properties	$	75,323	$	67,507	$	7,816		11.6	%	$	(13	)	$	1,036	$	75,310	$	68,543
NOI attributable to equity method investments, at ownership share		16,255		13,513		2,742		20.3	%		(10	)		15		16,245		13,529
Total NOI		91,578		81,020		10,558		13.0	%		(23	)		1,051		91,555		82,072
Less: lease termination revenue		3,170		226		2,944		1302.7	%		-			-		3,170		226
Total NOI excluding lease termination revenue	$	88,408	$	80,794	$	7,614		9.4	%	$	(23	)	$	1,051	$	88,385	$	81,846

(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 June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Net loss	$	(25,380	)	$	(23,119	)	$	(69,360	)	$	(36,668	)
Depreciation and amortization:
Consolidated		29,686			30,908			59,525			61,177
Unconsolidated properties at ownership share		2,975			3,691			6,162			7,302
Interest expense:
Consolidated		31,978			17,182			62,709			34,040
Unconsolidated properties at ownership share		5,437			2,687			10,682			5,657
Gain on sales of real estate by equity method investee		(1,347	)		—			(1,347	)		—
Loss (gain) on sales of real estate, net		974			(9,300	)		974			(11,263	)
Gain on debt extinguishment, net		(4,587	)		—			(4,587	)		—
Impairment of assets		1,302			—			1,302			—
EBITDAre	$	41,038		$	22,049		$	66,060		$	60,245

(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 June 30, 2021 and 2020

(in thousands)

	Three Months Ended June 30,
	2021			2020
Net loss	$	(25,380	)	$	(23,119	)
Other income		(162	)		(131	)
Depreciation and amortization		29,686			30,908
General and administrative expenses		13,535			10,569
Insurance recoveries, net		(670	)		(586	)
Provision for employee separation expenses		149			1,040
Project costs and other expenses	77			66
Interest expense, net		31,978			17,182
Equity in income (loss) of partnerships		(2,433	)		358
Gain on debt extinguishment, net		(4,587	)		-
Impairment of assets		1,302			-
Reorganization expenses		69			-
Gain on sales of real estate by equity method investee		(1,347	)		-
Loss (gain) on sales of real estate, net		974			(9,300	)
Loss on sales of interest in non operating real estate		-			144
NOI from consolidated properties⁽¹⁾	$	43,191		$	27,131

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

	Same Store						Non Same Store						Total
	2021			2020			2021			2020			2021			2020
Real estate revenue
Base rent	$	48,282		$	36,076		$	1,331		$	1,701		$	49,613		$	37,777
CAM reimbursement income		8,159			9,464			142			438			8,301			9,902
Real estate tax income		6,596			8,365			81			155			6,677			8,520
Percentage rent		217			(22	)		-			2			217			(20	)
Lease termination revenue		623			217			-			-			623			217
		63,877			54,100			1,554			2,296			65,431			56,396
Less: credit recoveries (losses)		2,307			(4,004	)		375			(273	)		2,682			(4,277	)
Lease revenue		66,184			50,096			1,929			2,023			68,113			52,119
Expense reimbursements		3,756			2,735			131			240			3,887			2,975
Other real estate revenue		1,745			1,472			211			71			1,956			1,543
Total real estate revenue		71,685			54,303			2,271			2,334			73,956			56,637
Property operating expenses
CAM and real estate taxes		(24,313	)		(23,283	)		(1,349	)		(1,930	)		(25,662	)		(25,213	)
Utilities		(2,700	)		(2,328	)		(160	)		(191	)		(2,860	)		(2,519	)
Other property operating expenses		(2,055	)		(1,615	)		(188	)		(159	)		(2,243	)		(1,774	)
Total property operating expenses		(29,068	)		(27,226	)		(1,697	)		(2,280	)		(30,765	)		(29,506	)
NOI from consolidated properties⁽¹⁾	$	42,617		$	27,077		$	574		$	54		$	43,191		$	27,131
Less: Lease termination revenue		623			217			-			-			623			217
NOI from consolidated properties excluding lease termination revenue⁽¹⁾	$	41,994		$	26,860		$	574		$	54		$	42,568		$	26,914
% change in Same Store NOI from consolidated properties excluding lease termination revenue				56.3%

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

Pennsylvania Real Estate Investment Trust

Reconciliation of Equity in Income (Loss) of Partnerships to Net Operating Income from Equity Method Investments,

at Ownership Share (Non-GAAP Measure)

Three Months Ended June 30, 2021 and 2020

(in thousands)

	Three Months Ended June 30,
	2021		2020
Equity in income (loss) of partnerships	$	2,433	$	(358	)
Other income		-		(12	)
Depreciation and amortization		2,974		3,691
Impairment of assets		265		-
Interest expense and other expenses, net		5,531		2,764
NOI from equity method investments at ownership share⁽¹⁾	$	11,203	$	6,085

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

	Same Store						Non Same Store						Total
	2021			2020			2021			2020			2021			2020
Real estate revenue
Base rent	$	7,669		$	6,813		$	-		$	-		$	7,669		$	6,813
CAM reimbursement income		2,609			1,991			-			-			2,609			1,991
Real estate tax income		1,082			1,070			-			-			1,082			1,070
Percentage rent		394			(12	)		120			58			514			46
Lease termination revenue		2,512			-			-			-			2,512			-
		14,266			9,862			120			58			14,386			9,920
Less: credit recoveries (losses)		672			(1,126	)		-			-			672			(1,126	)
Lease revenue		14,938			8,736			120			58			15,058			8,794
Expense reimbursements		548			508			-			-			548			508
Other real estate revenue		584			570			8			51			592			621
Total real estate revenue		16,070			9,814			128			109			16,198			9,923
Property operating expenses
CAM and real estate taxes		(3,979	)		(2,943	)		(108	)		(105	)		(4,087	)		(3,048	)
Utilities		(317	)		(221	)		-			-			(317	)		(221	)
Other property operating expenses		(578	)		(571	)		(13	)		2			(591	)		(569	)
Total property operating expenses		(4,874	)		(3,735	)		(121	)		(103	)		(4,995	)		(3,838	)
NOI from equity method investments at ownership share⁽¹⁾	$	11,196		$	6,078		$	7		$	6		$	11,203		$	6,084
Less: Lease termination revenue		2,512			-			-			-			2,512			-
NOI from equity method investments at ownership share excluding lease termination revenue⁽¹⁾	$	8,684		$	6,078		$	7		$	6		$	8,691		$	6,084
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				42.9%

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

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

Six Months Ended June 30, 2021 and 2020

(in thousands)

	Six Months Ended June 30,
	2021			2020

Net loss	$	(69,360	)	$	(36,668	)
Other income		(288	)		(424	)
Depreciation and amortization		59,525			61,177
General and administrative expenses		25,366			21,264
Insurance recoveries, net		(670	)		(586	)
Provision for employee separation expenses		240			1,113
Project costs and other expenses		179			161
Interest expense, net		62,709			34,040
Impairment of assets		1,302			—
Equity in income (loss) of partnerships		1,000			(461	)
Gain on debt extinguishment, net		(4,587	)		—
Gain on sales of real estate by equity method investee		(1,347	)		—
Loss (gain) on sales of real estate, net		974			(11,263	)
Reorganization expenses		267			—
Loss on sales of interest in non operating real estate		—			190
NOI from consolidated properties⁽¹⁾	$	75,310		$	68,543

	Same Store						Non Same Store						Total
	2021			2020			2021			2020			2021			2020
Real estate revenue
Base rent	$	93,077		$	84,555		$	2,454		$	4,270		$	95,531		$	88,825
CAM reimbursement income		16,350			19,130			310			939			16,660			20,069
Real estate tax income		13,507			16,684			114			333			13,621			17,017
Percentage rent		205			(6	)		-			5			205			(1	)
Lease termination revenue		658			226			-			-			658			226
		123,797			120,589			2,878			5,547			126,675			126,136
Less: credit recoveries (losses)		1,109			(5,897	)		236			(399	)		1,345			(6,296	)
Lease revenue		124,906			114,693			3,114			5,148			128,020			119,841
Expense reimbursements		7,541			6,748			244			532			7,785			7,281
Other real estate revenue		3,159			3,257			269			208			3,428			3,465
Total real estate revenue		135,606			124,698			3,627			5,888			139,233			130,587
Property operating expenses
CAM and real estate taxes		(50,526	)		(48,680	)		(2,965	)		(4,050	)		(53,491	)		(52,730	)
Utilities		(5,551	)		(5,007	)		(273	)		(435	)		(5,824	)		(5,442	)
Other property operating expenses		(4,206	)		(3,504	)		(402	)		(367	)		(4,608	)		(3,872	)
Total property operating expenses		(60,283	)		(57,191	)		(3,640	)		(4,852	)		(63,923	)		(62,044	)
NOI from consolidated properties⁽¹⁾	$	75,323		$	67,507		$	(13	)	$	1,036		$	75,310		$	68,543
Less: Lease termination revenue		658			226			-			-			658			226
NOI from consolidated properties excluding lease termination revenue⁽¹⁾	$	74,665		$	67,281		$	(13	)	$	1,036		$	74,652		$	68,317
% change in Same Store NOI from consolidated properties excluding lease termination revenue				11.0%

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

Reconciliation of Equity in (Loss) Income of Partnerships to Net Operating Income from Equity Method Investments,

at Ownership Share (Non-GAAP Measure)

Six Months Ended June 30, 2021 and 2020

(in thousands)

	Six Months Ended June 30,
	2021			2020
Equity in income (loss) of partnerships	$	(1,000	)	$	461
Other income		-			(25	)
Depreciation and amortization		6,162			7,302
Impairment of assets		265			-
Interest expense and other expenses, net		10,818			5,792
NOI from equity method investments at ownership share⁽¹⁾	$	16,245		$	13,529

	Same Store						Non Same Store						Total
	2021			2020			2021			2020			2021			2020
Real estate revenue
Base rent	$	15,749		$	14,655		$	-		$	-		$	15,749		$	14,655
CAM reimbursement income		4,174			4,019			-			-			4,174			4,018
Real estate tax income		2,036			2,155			-			-			2,036			2,156
Percentage rent		459			65			212			58			671			123
Lease termination revenue		2,512			-			-			-			2,512			-
		24,930			20,894			212			58			25,142			20,952
Less: credit losses		(215	)		(1,459	)		-			-			(215	)		(1,459	)
Lease revenue		24,715			19,435			212			58			24,927			19,493
Expense reimbursements		1,030			1,099			-			-			1,030			1,099
Other real estate revenue		774			1,259			17			171			791			1,429
Total real estate revenue		26,519			21,793			229			229			26,748			22,021
Property operating expenses
CAM and real estate taxes		(8,168	)		(6,431	)		(216	)		(206	)		(8,384	)		(6,637	)
Utilities		(691	)		(537	)		-			-			(691	)		(537	)
Other property operating expenses		(1,405	)		(1,311	)		(23	)		(8	)		(1,428	)		(1,318	)
Total property operating expenses		(10,264	)		(8,279	)		(239	)		(214	)		(10,503	)		(8,492	)
NOI from equity method investments at ownership share⁽¹⁾	$	16,255		$	13,513		$	(10	)	$	15		$	16,245		$	13,529
Less: Lease termination revenue		2,512			-			-			-			2,512			-
NOI from equity method investments at ownership share excluding lease termination revenue⁽¹⁾	$	13,743		$	13,513		$	(10	)	$	15		$	13,733		$	13,529
% change in Same Store NOI from equity method investments at ownership share excluding lease termination revenue				1.7%

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

Pennsylvania Real Estate Investment Trust

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

Three and Six Months Ended June 30, 2021 and 2020

(in thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
FUNDS FROM OPERATIONS ⁽¹⁾

Net loss	$	(25,380	)	$	(23,119	)	$	(69,360	)	$	(36,668	)
Depreciation and amortization on real estate:
Consolidated properties		29,349			30,541			58,840			60,485
PREIT's share of equity method investments		2,974			3,796			6,162			7,407
Gain on sales of real estate by equity method investee		(1,347	)		-			(1,347	)		-
Loss (gain) on sales of real estate, net		974			(9,301	)		974			(11,263	)
Impairment of Assets:
Consolidated properties		1,302			-			1,302			-
PREIT's share of equity method investments		265			-			265			-
Dividends on preferred shares⁽²⁾		-			(6,844	)		-			(13,688	)
Funds from operations attributable to common shareholders and OP Unit holders⁽¹⁾		8,137			(4,927	)		(3,164	)		6,273
Provision for employee separation expenses		149			1,040			240			1,113
Gain on hedge ineffectiveness		(494	)		-			(1,797	)		-
Gain on debt extinguishment, net		(4,587	)		-			(4,587	)		-
Insurance recoveries, net		(670	)		(586	)		(670	)		(586	)
Reorganization expenses		69			-			267			-
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders	$	2,604		$	(4,473	)	$	(9,711	)	$	6,800

FUNDS AVAILABLE FOR DISTRIBUTION⁽¹⁾

Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders⁽¹⁾	$	2,604		$	(4,473	)	$	(9,711	)	$	6,800
Adjustments:
Straight line rent		(446	)		(596	)		(612	)		(1,610	)
Recurring capital expenditures		(1,704	)		(628	)		(1,925	)		(1,662	)
Tenant allowances		(3,218	)		(4,724	)		(4,680	)		(5,742	)
Amortization of non-cash deferred compensation		1,147			1,624			2,469			6,212
Capitalized leasing costs		(24	)		(164	)		(25	)		(906	)
Amortization of above- and below-market lease intangibles		(15	)		(32	)		(30	)		(49	)
Funds available for distribution to common shareholders and OP Unit holders⁽¹⁾	$	(1,656	)	$	(9,098	)	$	(14,514	)	$	2,939

Funds from operations attributable to common shareholders and OP Unit holders per diluted share and OP Unit⁽¹⁾	$	0.10		$	(0.06	)	$	(0.04	)	$	0.08
Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders per diluted share and OP Unit	$	0.03		$	(0.06	)	$	(0.12	)	$	0.09
Funds available for distribution to common shareholders and OP Unit holders per diluted share and OP Unit⁽¹⁾	$	(0.02	)	$	(0.11	)	$	(0.18	)	$	0.04

Weighted average number of shares outstanding	78,144	77,269	77,896	77,021
Weighted average effect of full conversion of OP Units	1,976	2,023	1,976	2,023
Effect of common share equivalents	919	357	805	439
Total weighted average shares outstanding, including OP Units	81,039	79,649	80,677	79,483

(1)	Non-GAAP measures. See definitions on page 33.

(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 and six months ended June 30, 2021 and 2020. 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 Sheets

(Unaudited)

	June 30, 2021			December 31, 2020
(in thousands, except per share amounts)
ASSETS:
INVESTMENTS IN REAL ESTATE, at cost:
Operating properties	$	3,171,551		$	3,168,536
Construction in progress		43,571			46,285
Land held for development		5,516			5,516
Total investments in real estate		3,220,638			3,220,337
Accumulated depreciation		(1,361,137	)		(1,308,427	)
Net investments in real estate		1,859,501			1,911,910
INVESTMENTS IN PARTNERSHIPS, at equity:		23,576			27,066
OTHER ASSETS:
Cash and cash equivalents		38,794			43,309
Tenant and other receivables, net		37,846			54,532
Intangible assets		10,683			11,392
Deferred costs and other assets, net		124,732			127,593
Assets held for sale		4,925			1,384
Total assets	$	2,100,057		$	2,177,186
LIABILITIES:
Mortgage loans payable, net	$	861,899		$	884,503
Term Loans, net		934,588			908,473
Revolving Facility		54,830			54,830
Tenants’ deposits and deferred rent		9,776			8,899
Distributions in excess of partnership investments		72,390			76,586
Fair value of derivative liabilities		16,227			23,292
Accrued expenses and other liabilities		85,632			93,663
Total liabilities		2,035,342			2,050,246
COMMITMENTS AND CONTINGENCIES
EQUITY:
Series B Preferred Shares, $.01 par value per share; 25,000 shares authorized; 3,450 shares issued and outstanding; liquidation preference of $92,610 and $89,430 at June 30, 2021 and December 31, 2020, respectively		35			35
Series C Preferred Shares, $.01 par value per share; 25,000 shares authorized; 6,900 shares issued and outstanding; liquidation preference of $184,920 and $178,710 at June 30, 2021 and December 31, 2020, respectively		69			69
Series D Preferred Shares, $.01 par value per share; 25,000 shares authorized; 5,000 shares issued and outstanding; liquidation preference of $133,594 and $129,297 at June 30, 2021 and December 31, 2020, respectively		50			50
Shares of beneficial interest, $1.00 par value per share; 200,000 shares authorized; 79,260 and 79,537 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively		79,260			79,537
Capital contributed in excess of par		1,773,877			1,771,777
Accumulated other comprehensive loss		(15,475	)		(20,620	)
Distributions in excess of net income		(1,766,981	)		(1,699,638	)
Total equity—Pennsylvania Real Estate Investment Trust		70,835			131,210
Noncontrolling interest		(6,120	)		(4,270	)
Total equity		64,715			126,940
Total liabilities and equity	$	2,100,057		$	2,177,186

Pennsylvania Real Estate Investment Trust

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

(in thousands)

	June 30, 2021			December 31, 2020
ASSETS:
Investments in real estate, at cost:
Operating properties	$	388,670		$	452,012
Construction in progress		17,249			117,551
Total investments in real estate		405,919			569,563
Accumulated depreciation		(115,793	)		(116,923	)
Net investments in real estate		290,126			452,640
Cash and cash equivalents		23,114			10,952
Deferred costs and other assets, net		75,135			51,054
Total assets		388,375			514,646
LIABILITIES AND PARTNERS’ INVESTMENT:
Mortgage loans payable, net		226,539			224,800
FDP Term Loan, net		97,301			100,500
Partnership Loan		54,400			50,000
Other liabilities		58,949			57,949
Total liabilities		437,189			433,249
Net investment	$	(48,814	)	$	81,397
Reconciliation to comparable GAAP balance sheet item:
Investment in partnerships, at equity	$	23,576		$	167,167
Distributions in excess of partnership investments		(72,390	)		(85,770	)
Net investments and advances	$	(48,814	)	$	81,397

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 June 30, 2021

		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		48		102,427		4.4	$	40.90	N/A		N/A			N/A			N/A			$	5.02
	Unconsolidated⁽⁴⁾		7		29,408		3.8		35.73	N/A		N/A			N/A			N/A				-
Total Under 10k sf			55		131,835		4.3	$	39.75	N/A		N/A			N/A			N/A			$	4.02

Over 10k sf	Consolidated		2		57,431		12.6		16.54		-		-		N/A			N/A				2.57
Total New Leases			57		189,266		6.8	$	32.70	N/A		N/A			N/A			N/A			$	3.21

Renewal Leases
Under 10k sf	Consolidated		32		68,037		2.8	$	54.51	$	62.35	$	(7.84	)		(12.6	%)		(15.3	%)	$	-
	Unconsolidated⁽⁴⁾		2		6,349		2.0		44.42		38.11		6.31			16.6	%		19.0	%	$	-
Total Under 10k sf			34		74,386		2.8	$	53.65	$	60.28	$	(6.63	)		(11.0	%)		(13.5	%)	$	-

Over 10k	Consolidated		6		264,466		4.7		21.99		20.21		1.78			8.8	%		11.3	%	$	-

Total Over 10k sf			6		264,466		4.7		21.99		20.21		1.78			8.8	%		11.3	%
Total Fixed Rent			40		338,852		4.3	$	28.94	$	29.01	$	(0.07	)		(0.2	%)		(0.4	%)	$	-
Total Percentage in Lieu	Consolidated		16		91,277		1.4		23.15		28.92		(5.77	)		(20.0	%)	N/A			$	-
Total Renewal Leases			56		430,129		3.7	$	27.71	$	28.99	$	(1.28	)		(4.4	%)				$	-
Total Non Anchor			113		619,395		4.6	$	29.23

Anchor
New Leases	Consolidated		1		80,983		2.0	$	1.63	$	-	$	-		N/A			N/A			$	-
Renewal Leases	Consolidated		2		168,043		5.0		5.88	$	5.73	$	0.15			2.6	%	N/A			$	-
Total			3		249,026		4.0	$	4.50

(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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 for further details on our ownership interests in our unconsolidated properties. Our unconsolidated properties include 9 leases and 35,757 square feet of GLA with respect to our unconsolidated partnerships.

Pennsylvania Real Estate Investment Trust

Leasing Activity Summary – Six Months Ended June 30, 2021

		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		71		161,448		5.1	$	41.59	N/A		N/A			N/A			N/A			$	4.06
	Unconsolidated(4)		10		34,801		4.3		40.65	N/A		N/A			N/A			N/A				6.04
Total Under 10k sf			81		196,249		5.0	$	41.42	N/A		N/A			N/A			N/A			$	4.36

Over 10k sf	Consolidated		5		187,455		20.3		9.31	N/A		N/A			N/A			N/A				1.13
Total New Leases			86		383,704		12.5	$	25.73	N/A		N/A			N/A			N/A			$	1.79

Renewal Leases
Under 10k sf	Consolidated		96		151,574		4.1	$	71.20	$	76.39	$	(5.19	)		(6.8	%)		(4.4	%)	$	-
	Unconsolidated(4)		10		45,153		2.1	$	36.80	$	46.27		(9.47	)		(20.5	%)		(13.6	%)		-
Total Under 10k sf			106		196,727		3.7	$	63.30	$	69.48	$	(6.17	)		(8.9	%)		(5.7	%)	$	-

Over 10k sf	Consolidated		8		302,597		4.7		21.23		19.68	$	1.55			7.9	%		10.1	%		-
	Unconsolidated(4)
Total Over 10k sf			8		302,597		4.7		21.23		19.68		1.55			7.9	%		10.1	%	$	-
Total Fixed Rent			114		499,324		4.3	$	37.81	$	39.30	$	(1.49	)		(3.8	%)		(1.0	%)	$	-
Percentage in Lieu	Consolidated		53		242,553		1.5		23.40		25.99	$	(2.59	)		(10.0	%)	N/A				-
	Unconsolidated(4)
Total Percentage in Lieu			53		242,553		1.5	$	23.40	$	25.99	$	(2.59	)		(10.0	%)				$	-
Total Renewal Leases (4)			167		741,877		3.4	$	33.10	$	34.95	$	(1.85	)		(5.3	%)				$	-
Total Non Anchor			253		1,125,581		6.5	$	30.59

Anchor
New Leases			2		185,090		6.5	$	2.06	N/A		N/A			N/A			N/A			$	0.42
Renewal Leases	Consolidated		5		650,518		4.6		4.42	$	4.41	$	0.01			0.2	%					-
Total			7		835,608		5.0	$	3.90

(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) 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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 for further details on our ownership interests in our unconsolidated properties. Our unconsolidated properties include 20 leases and 79,954 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

	June 30, 2021⁽¹⁾																			June 30, 2020
								Actual Occupancy						Leased Occupancy													Actual Occupancy
	% Rolling 12 Mo. NOI			Average Comp Sales ⁽¹⁾	Average Gross Rent⁽²⁾⁽³⁾		Occupancy Cost	Total			Non- Anchor			Total			Non- Anchor			% Rolling 12 Mo. NOI			Average Comp Sales ⁽¹⁾	Average Gross Rent⁽²⁾⁽³⁾		Occupancy Cost⁽⁴⁾	Total			Non- Anchor
Malls		89.4	%	n/a	$	56.36	n/a		90.2	%		87.8	%		92.6	%		90.4	%		90.8	%	n/a	$	59.66	n/a		92.4	%		89.5	%
Non- Same Store Mall					$	54.23			72.7	%		65.5	%		78.8	%		73.2	%					$	56.27			72.1	%		64.3	%
Non-Core Malls		0.3	%	n/a	$	30.16	n/a		68.2	%		46.4	%		68.2	%		46.4	%		1.5	%	n/a	$	44.29	n/a		61.8	%		55.3	%
Malls Total		89.6	%	n/a	$	55.67	n/a		87.8	%		84.3	%		90.3	%		87.2	%		92.2	%	n/a	$	59.09	n/a		89.4	%		86.1	%
Other Retail Properties		5.9	%	n/a	$	23.67	n/a		88.8	%		87.8	%		90.9	%		90.1	%		7.1	%	n/a	$	25.73	n/a		89.4	%		88.6	%
Total Retail Properties		95.5	%	n/a	$	46.72	n/a		87.9	%		84.8	%		90.4	%		87.6	%		99.3	%	n/a	$	50.27	n/a		89.4	%		86.5	%
Sold Properties		0.0	%	n/a	n/a		n/a	n/a			n/a			n/a			n/a				0.1	%	n/a	$	40.64	n/a		64.5	%		78.9	%
Other Properties		4.4	%	n/a	n/a		n/a	n/a			n/a			n/a			n/a				0.6	%	n/a	n/a		n/a	n/a			n/a
Total Portfolio		100.0	%	n/a	$	46.72	n/a		87.9	%		84.8	%		90.4	%		87.6	%		100.0	%	n/a	$	50.08	n/a		88.8	%		86.3	%

(1)	Average comp sales are not reported for 2021 or 2020 due to COVID-19 related mall closures and operational limitations impacting 2020 activity. As a result of these closures and related limitations, 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 June 30, 2021 and $21.52 per square foot as of June 30, 2020.

(4)	Occupancy Cost is not included in either 2021 or 2020 due to Average Comp Sales not being presented.

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot

	June 30, 2021										June 30, 2020							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		5.4	%	n/a		93.3	%		88.4	%	n/a		96.2	%		93.8	%	n/a		(2.9	%)		(5.4	%)
Cherry Hill Mall		9.7	%	n/a		93.3	%		92.0	%	n/a		92.1	%		90.5	%	n/a		1.2	%		1.5	%
Woodland Mall		6.7	%	n/a		84.1	%		81.3	%	n/a		97.9	%		97.5	%	n/a		(13.8	%)		(16.2	%)
Lehigh Valley Mall		6.8	%	n/a		88.3	%		81.1	%	n/a		90.1	%		83.6	%	n/a		(1.8	%)		(2.5	%)
Mall at Prince Georges		8.6	%	n/a		82.2	%		96.4	%	n/a		98.7	%		97.3	%	n/a		(16.5	%)		(0.9	%)
Springfield Town Center		11.4	%	n/a		88.8	%		85.0	%	n/a		91.8	%		88.9	%	n/a		(3.0	%)		(3.9	%)
		48.6	%	n/a		88.3	%		87.1	%	n/a		94.1	%		91.2	%	n/a		(5.8	%)		(6.2	%)

Malls 7-12
Dartmouth Mall		4.8	%	n/a		95.6	%		93.6	%	n/a		99.3	%		99.0	%	n/a		(3.7	%)		(5.4	%)
Jacksonville Mall		4.6	%	n/a		98.7	%		97.5	%	n/a		96.3	%		92.8	%	n/a		2.4	%		4.7	%
Magnolia Mall		3.0	%	n/a		80.4	%		96.5	%	n/a		96.5	%		93.9	%	n/a		(16.1	%)		2.6	%
Capital City Mall		6.2	%	n/a		95.7	%		93.6	%	n/a		98.1	%		97.2	%	n/a		(2.4	%)		(3.6	%)
Patrick Henry Mall		5.3	%	n/a		91.9	%		88.2	%	n/a		93.6	%		90.6	%	n/a		(1.7	%)		(2.4	%)
Viewmont Mall		4.6	%	n/a		96.1	%		91.9	%	n/a		95.5	%		90.8	%	n/a		0.6	%		1.1	%
		28.4	%	n/a		92.7	%		93.6	%	n/a		96.6	%		94.3	%	n/a		(3.9	%)		(0.7	%)

Malls 13-18
Valley Mall		5.7	%	n/a		97.3	%		94.0	%	n/a		98.5	%		96.7	%	n/a		(1.2	%)		(2.7	%)
Moorestown Mall		4.5	%	n/a		94.1	%		89.6	%	n/a		78.4	%		80.1	%	n/a		15.7	%		9.5	%
Springfield Mall		1.2	%	n/a		84.4	%		84.4	%	n/a		88.3	%		88.3	%	n/a		(3.9	%)		(3.9	%)
Cumberland Mall		2.8	%	n/a		90.6	%		84.6	%	n/a		86.9	%		78.6	%	n/a		3.7	%		6.0	%
Francis Scott Key Mall		4.0	%	n/a		92.4	%		88.2	%	n/a		93.9	%		90.4	%	n/a		(1.5	%)		(2.2	%)
Plymouth Meeting Mall		4.6	%	n/a		81.8	%		73.1	%	n/a		83.0	%		74.8	%	n/a		(1.2	%)		(1.7	%)
		22.7	%	n/a		90.6	%		84.5	%	n/a		87.6	%		83.5	%	n/a		3.0	%		1.0	%

All Core Malls		99.7	%	n/a		90.2	%		87.8	%	n/a		92.4	%		89.5	%	n/a		(2.2	%)		(1.7	%)

Non-Core Malls
Valley View Mall		0.2	%	n/a	n/a			n/a			n/a		64.5	%		78.9	%	n/a	n/a			n/a
Exton Square Mall		0.1	%	n/a		68.2	%		46.4	%	n/a		61.8	%		55.3	%	n/a		6.4	%		(8.9	%)
All Non-Core Malls		0.3	%	n/a		68.2	%		46.4	%	n/a		62.7	%		63.8	%	n/a		5.5	%		(17.4	%)

Non Same Store Mall
Fashion District Philadelphia	n/a			n/a		72.7	%		65.5	%	n/a		72.1	%		64.3	%	n/a	n/a			n/a
All Non Same Store Malls						72.7	%		65.5	%	n/a		72.1	%		64.3	%

All Malls		100.0	%	n/a		87.8	%		84.3	%	n/a		88.7	%		85.9	%	n/a		(0.9	%)		(1.6	%)

(1)	Average comp sales are not reported due to COVID-19 related mall closures in 2020 impacting the comparability of results. As a result of the closures and related limitations, comparisons are not meaningful.

(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 due to a loss of control of the property. We continue to recognize the mortgage balance of $27.2 million pending completion of the foreclosure process.

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants

June 30, 2021

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,Nike Yardline, Footaction Flight 23	39		7		46			4.9	%
L Brands, Inc.	Bath & Body Works, Pink, Victoria's Secret	32		6		38			4.3	%
Signet Jewelers Limited	Kay Jewelers, Piercing Pagoda, Totally Pagoda, Zales Jewelers	46		10		56			3.3	%
Dick's Sporting Goods, Inc.	Dick's Sporting Goods	11		1		12			3.1	%
American Eagle Outfitters, Inc.	Aerie, American Eagle Outfitters	15		6		21			2.6	%
Express, Inc	Express, Express Factory Outlet, Express Men	10		4		14			1.9	%
Dave & Buster's, Inc.	Dave & Buster's	3			1	4			1.9	%
Sycamore Partners	Hot Topic, Talbots, Torrid, AnnTaylor, Loft, Lane Bryant, Belk	33		9		42			1.8	%
Gap, Inc.	Banana Republic, Gap/Gap Kids/Gap Outlet, Old Navy, Old Navy Outlet, Banana Republic Factory Store	10		8		18			1.8	%
Macy's	Bloomingdale's, Macy's	12			2	14			1.8	%
Cineworld Group	Regal Cinemas	4		0		4			1.7	%
Genesco Inc.	Johnston & Murphy, Journeys, Journeys Kidz, Underground by Journeys	23			5	28			1.7	%
Luxottica Group S.p.A.	Lenscrafters, Pearle Vision, Sunglass Hut, Sunglass Hut Outlet	21		7		28			1.3	%
Darden Concepts, Inc.	Bahama Breeze, Capital Grille, Olive Garden, Seasons 52, Yard House	8		0		8			1.3	%
Shoe Show, Inc.	Shoe Department, Shoe Dept. Encore, Shoe Show	20			2	22			1.3	%
H&M Hennes & Muritz L.P.	H & M	12			1	13			1.2	%
AMC Entertainment Holdings, Inc.	AMC	3			1	4			1.1	%
The TJX Companies, Inc.	HomeGoods, HomeSense, Marshalls, Sierra Trading Post, TJ Maxx	7		1		8			1.1	%
Copper Retail JV LLC	JC Penney, Penneys Firestone	10		1		11			1.0	%
Focus Brands	Auntie Anne's, Cinnabon, Jamba Juice, Moe's Southwest Grill	28			5	33			1.0	%
Total Top 20 Tenants		347		77		424			40.1	%
Total Leases			1,298	340			1,638		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 June 30, 2021.

Pennsylvania Real Estate Investment Trust

Lease Expirations as of June 30, 2021

(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
2021 and Prior		160		302,876		3.8	%		16,221		15,329		5.6	%		53.56
2022		266		921,160		11.5	%		35,568		30,324		11.2	%		38.61
2023		242		1,307,272		16.2	%		45,041		39,311		14.5	%		34.45
2024		196		772,632		9.6	%		38,080		34,117		12.6	%		49.29
2025		180		1,045,425		13.0	%		42,852		34,079		12.5	%		40.99
2026		139		842,040		10.5	%		35,640		28,399		10.4	%		42.33
2027		89		667,776		8.3	%		24,399		22,443		8.2	%		36.54
2028		75		548,402		6.8	%		20,949		19,512		7.2	%		38.20
2029		66		477,337		5.9	%		18,809		15,342		5.6	%		39.40
2030		65		495,623		6.2	%		20,561		17,264		6.3	%		41.49
Thereafter		50		660,247		8.2	%		20,573		16,122		5.9	%		31.16
Total/Average		1,528		8,040,790		100.0	%	$	318,693	$	272,242		100.0	%	$	39.63

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
2021 and prior		3		325,121		6.7	%		1,246		731		2.8	%		3.83
2022		3		417,026		8.7	%		1,717		1,362		5.2	%		4.12
2023		4		429,575		8.9	%		2,051		2,051		7.8	%		4.78
2024		3		445,199		9.2	%		2,332		2,332		8.8	%		5.24
2025		9		1,181,974		24.5	%		3,211		3,211		12.2	%		2.72
2026		5		411,018		8.5	%		2,820		1,836		7.0	%		6.33
2027		2		275,250		5.7	%		1,743		1,743		6.6	%		6.33
2028		8		879,599		18.3	%		6,338		6,338		24.0	%		7.21
2029		1		65,155		1.4	%		2,210		2,210		8.4	%		33.92
2030		2		85,723		1.8	%		1,511		1,511		5.7	%		17.63
Thereafter		4		303,743		6.3	%		3,074		3,074		11.5	%		10.12
Total/Average		44		4,819,383		100.0	%	$	28,253	$	26,399		100.0	%	$	5.86

(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 June 30, 2021

		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		161,986		21,722		623,318
		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		254,879		384,631		55,635		1,312,030
						Macy's		304,600
Cumberland Mall	Vineland, NJ	The Home Depot	2024		132,013	BJ's Wholesale Club		117,889		168,249		138,261		64,036		951,217
		Dick's Sporting Goods	2028		50,000	Boscov's		155,341
		Regal Cinemas	2024							44,445
		Power Warehouse	2023		80,983
Dartmouth Mall	Dartmouth, MA	JCPenney	2025		100,020	Macy's		140,000		119,050		139,858		20,699		608,455
		Burlington	2030		43,840
		AMC Theaters	2026							44,988
Francis Scott Key Mall	Frederick, MD	JCPenney	2025		101,293	Macy's		139,333		124,272		171,849		46,487		754,267
		Sears	2023		120,883
		Dick's Sporting Goods	2025							50,150
Jacksonville Mall	Jacksonville, NC	Belk	2026		72,510					123,079		121,622		6,328		493,144
		JCPenney	2025		51,812
		Sears	2026		117,793
Lehigh Valley Mall	Allentown, PA	Boscov's	2022		164,694	JCPenney		207,292		185,631		308,166		114,848		1,192,631
		Macy's	2022		212,000
Magnolia Mall	Florence, SC ⁽²⁾	Belk	2028		115,793					96,175		141,306		115,843		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	Cooper Hospital ⁽⁵⁾		182,153		232,014		183,572		44,233		931,066
		Regal Cinemas	2028							57,843
		HomeSense	2028		28,486
Patrick Henry Mall	Newport News, VA	Dick's Sporting Goods	2027		50,250	Dillard's		144,157		60,095		203,041		35,116		717,871
		JCPenney	2025		85,212	Macy's		140,000
Plymouth Meeting Mall	Plymouth Meeting, PA	Boscov's	2028		188,429					148,275		167,957		167,336		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		167,557		34,702		610,735
						Target		195,899
Springfield Town Center	Springfield, VA	Macy's	2025		252,245	JCPenney		209,144		168,618		287,303		109,780		1,374,155
						Target		180,841
		Dick's Sporting Goods	2025							53,891
		Nordstrom Rack	2025							33,107
		Regal Cinemas	2031							49,788
		Saks OFF 5th	2026							29,438
The Mall at Prince Georges	Hyattsville, MD ⁽³⁾	Macy's	2023		195,655					177,988		254,745		164,964		928,538
		Target	2024		135,186

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2021

		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	2025		157,455					95,023		196,768		22,079		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		156,342		21,551		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		237,838		41,496		1,036,006
		Nordstrom Rack	2022		40,332	Sears⁽¹⁾		175,584
Woodland Mall	Grand Rapids, MI	Von Maur	2119		86,165	JCPenney		254,905		115,714		277,005		90,568		981,673
						Macy's		157,316
Total Core Malls					4,038,871			3,568,077		3,057,593		3,699,807		1,177,423		15,541,771

Other Malls and Retail Properties
Exton Square Mall	Exton, PA	Boscov's	2024		178,000	Macy's		181,200		175,953		139,343		257,278		990,145
		Round 1	2026		58,371
Fashion District Philadelphia	Philadelphia, PA	Burlington	2032		85,162					169,136		114,722		235,363		862,613
		Shopper's World	2026		95,159
		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		233,213		94,279		376,971
Metroplex Shopping Center	Plymouth Meeting, PA	Giant Food Store	2026		67,185	Lowe's		163,215		269,329		43,387		72,385		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		293,144		37,570		16,571		703,909
						The Home Depot		130,751
		Dick's Sporting Goods	2026							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					543,497			929,142		1,487,259		598,714		675,876		4,234,488
Total Portfolio					4,582,368			4,497,219		4,544,852		4,298,521		1,853,299		19,776,259

(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) Former Sears was acquired by Cooper Hospital. The site is under development and not currently operating.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate - Consolidated Properties

(in thousands)

	June 30, 2021
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Debt⁽¹⁾
Core Malls
Capital City Mall	$	137,321	$	-	$	59,086	$	78,235	$	-
Cherry Hill Mall		488,373		-		286,660		201,713		35,930
Cumberland Mall		84,140		43		35,791		48,392		56,139
Dartmouth Mall		90,896		1,310		49,837		42,369		86,091
Francis Scott Key Mall		98,264		-		47,900		50,364		127,685
Jacksonville Mall		94,472		-		44,923		49,549		-
Magnolia Mall		108,613		-		55,605		53,008		-
Moorestown Mall		189,019		1		85,545		103,475		-
Patrick Henry Mall		157,085		-		80,021		77,064		151,004
Plymouth Meeting Mall		236,494		5,456		113,794		128,156		-
The Mall at Prince Georges		147,479		214		73,286		74,407		-
Springfield Town Center		496,548		-		89,176		407,372		-
Valley Mall		149,962		1,228		56,572		94,618		-
Viewmont Mall		121,854		-		56,681		65,173		21,500
Willow Grove Park		234,912		35,236		118,509		151,639		17,000
Woodland Mall		286,074		83		93,431		192,726		207,545
Total Core Malls		3,121,506		43,571		1,346,817		1,818,260		702,894

Non-Core Malls
Exton Square Mall		49,006		-		14,262		34,744		-
Valley View Mall ⁽²⁾		-		-		-		-		27,212
Total Non-Core Malls		49,006		-		14,262		34,744		27,212

Total Malls	$	3,170,512	$	43,571	$	1,361,079	$	1,853,004	$	730,107
Other Properties
Land held for development		5,516		-		-		5,516		-
Total Other Properties	$	5,516	$	-	$	-	$	5,516	$	-
Total Investment in Real Estate	$	3,176,028	$	43,571	$	1,361,079	$	1,858,520	$	730,107

Property held for sale
Valley View Center		1,039		-		58		981		-
Moorestown Mall land parcel		447		-		-		447		-
Woodland Mall land parcel		1,054		-		-		1,054		-
Total held for sale	$	2,540	$	-	$	58	$	2,482	$	-

(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 of 2020, 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 pending completion of the foreclosure process.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate – Equity Method Investments at Ownership Share

(in thousands)

	June 30, 2021
	Operating Properties and Land Held for Development		Construction in Progress			Accumulated Depreciation			Net Real Estate		Debt⁽¹⁾
Unconsolidated Malls
Fashion District Philadelphia	$	151,296	$	12,471		$	(2,482	)	$	161,285	$	2,219,447
Lehigh Valley Mall		56,294		531			(30,824	)		26,001		93,621
Springfield Mall		58,740		60			(26,314	)		32,486		29,297
Total Unconsolidated Malls	$	266,330	$	13,062		$	(59,620	)	$	219,772	$	2,342,364

Unconsolidated Other Retail Properties
Gloucester Premium Outlets		28,003		63			(6,359	)		21,707		21,500
Metroplex Shopping Center		44,954		3,352			(28,069	)		20,237		35,930
The Court at Oxford Valley		28,411		8			(13,632	)		14,787		27,500
Red Rose Commons		14,626		(20	)		(5,702	)		8,904		17,000
Total Unconsolidated Other Retail Properties	$	115,994	$	3,403		$	(53,762	)	$	65,635	$	101,930
Unconsolidated Property Under Development
Pavilion at Market East		6,346		784			(2,411	)		4,719	$	2,960
Total Investment in Real Estate	$	388,670	$	17,249		$	(115,793	)	$	290,126	$	2,447,254

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

Pennsylvania Real Estate Investment Trust

Capital Expenditures

Three and Six Months Ended June 30, 2021

(in thousands)

	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
	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⁾	$	1,838	$	2,051	$	3,889	$	3,012	$	3,425	$	6,437
Tenant allowances		3,075		142		3,217		4,532		148		4,680
Recurring capital expenditures:
CAM expenditures		1,266		27		1,293		1,443		49		1,492
Non-CAM expenditures		410		-		410		419		14		433
Total recurring capital expenditures		1,676		27		1,703		1,862		63		1,925
Total	$	6,589	$	2,220	$	8,809	$	9,406	$	3,636	$	13,042

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

Pennsylvania Real Estate Investment Trust

Debt Analysis as of June 30, 2021

(in thousands)

	Outstanding Debt
	Fixed Rate ⁽¹⁾			% of Total Indebtedness			Variable Rate			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable ⁽²⁾	$	680,244			30.3	%	$	183,085			8.2	%	$	863,329			38.5	%
Unconsolidated mortgage loans payable ⁽³⁾		203,348			9.1	%	$	24,460			1.1	%		227,808			10.2	%
Consolidated Term Loans ⁽⁴⁾		550,000			24.5	%		394,699			17.6	%		944,699			42.1	%
Unconsolidated Term Loans ⁽⁵⁾		54,400			2.4	%		97,301			4.3	%		151,701			6.8	%
First Lien Revolver		-			0.0	%		54,830			2.4	%		54,830			2.4	%
Total Outstanding Debt	$	1,487,992			66.4	%	$	754,376			33.6	%	$	2,242,368			100.0	%
Average Stated Interest Rate		8.28	%					4.73	%					6.51	%

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

(2)	Excludes deferred financing costs of $1,431.

(3)	Reflects our share of mortgage debt of equity method investees. Excludes our share of deferred financing costs of $1,268.

(4)	Excludes deferred financing costs of $10,111.

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

		Average Debt Balance
		Mortgage Debt			Revolving Facility		Term Loans			Total
Beginning Balance	4/1/2021	$	1,098,720		$	54,830	$	1,087,166			2,240,716
First Lien Term Loan Paydown	5/11/2021		-			-		(826	)		(826	)
2020 FDP Term Loan Paydown	5/19/2021		-			-		(2,734	)		(2,734	)
Partnership Mortgage Borrowing	6/25/2021		6,028			-		-			6,028
FSK Mortgage Paydown	6/25/2021		(7,469	)		-		-			(7,469	)
Second Lien PIK Interest	6/30/2021		-			-		11,892			11,892
2020 FDP Partnership Loan Accrued Interest	6/30/2021		-			-		902			902
Mortgage loan amortization, including our share of debt of equity method investees	6/30/2021		(6,142	)		-		-			(6,142	)
Ending Balance	6/30/2021	$	1,091,137		$	54,830	$	1,096,400		$	2,242,367
Weighted Average Balance		$	1,096,650		$	54,830	$	1,089,420		$	2,240,900

(continued next page)

Pennsylvania Real Estate Investment Trust

Debt Analysis as of June 30, 2021

(in thousands)

Debt Maturities⁽¹⁾
Year	Scheduled Amortization		Deferred Financing Cost Amortization - Mortgages			Mortgage Balance at Initial Maturity Date		First Lien Revolving Facility		Term Loans		Deferred Financing Cost Amortization - Term Loans			Total Debt
2021	$	11,627	$	(985	)	$	141,362	$	-	$	-	$	(3,569	)	$	148,435
2022		17,402		(399	)		310,777		54,830		944,699		(6,542	)		1,320,769
2023		10,596		(289	)		89,661		-		97,301		-			197,269
2024		10,242		(265	)		127,685		-		-		-			137,663
2025		9,031		(209	)		237,644		-		-		-			246,467
Thereafter		13,794		(553	)		111,314		-		54,400		-			178,955
	$	72,692	$	(2,699	)	$	1,018,445	$	54,830	$	1,096,400	$	(10,111	)	$	2,229,557

(1)	The weighted average period to total debt maturity is 2.24 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	$	143,112		4.17	%
2022		320,798		3.81	%
2023		95,029		4.36	%
2024		127,685		4.56	%
2025		266,392		4.10	%
Thereafter		138,121		3.79	%
Total	$	1,091,137		4.06	%

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

Pennsylvania Real Estate Investment Trust

Debt Schedule as of June 30, 2021

(in thousands)

	Debt			Interest Rate			Annual Debt Service		Balance at Maturity			Initial Maturity Date	Fully Extended Maturity Date
Fixed Rate Mortgage Loans
Cumberland Mall	$	39,995			4.40	%	$	3,433	$	38,157		August 2022	August 2022
Cherry Hill Mall		259,303			3.90	%		16,980		251,120		September 2022	September 2022
Dartmouth Mall		56,139			3.97	%		3,825		53,299		April 2023	April 2023
Metroplex Shopping Center ⁽²⁾		35,930			5.00	%		2,818		33,502		October 2023	October 2023
Francis Scott Key Mall ⁽¹⁾		60,500			5.52	%		2,234		60,500		June 2024	June 2025
Patrick Henry Mall		86,091			4.35	%		5,748		77,591		July 2025	July 2025
Springfield Mall ⁽²⁾		29,297			4.45	%		1,964		26,299		October 2025	October 2025
Willow Grove Park		151,004			3.88	%		9,599		133,754		October 2025	October 2025
Lehigh Valley Mall ⁽²⁾		93,621			4.06	%		5,768		79,789		November 2027	November 2027
Red Rose Commons ⁽²⁾		17,000			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
Valley View Mall ⁽³⁾		27,212			5.95	%		-		27,212		July 2020	July 2020
Total Fixed Rate Mortgage Loans	$	883,592			4.19	%	$	55,405	$	812,749

Variable Rate Mortgage Loans
Woodland Mall	$	115,900			3.75	%	$	8,546	$	114,150		December 2021	December 2021
Gloucester Premium Outlets ⁽²⁾		21,500			1.59	%		342		21,500		March 2022	March 2022
Pavilion East Associates ⁽²⁾		2,960			4.00	%		218		2,860		May 2023	May 2023
Viewmont Mall		67,185			3.69	%		2,481		67,185		June 2024	June 2024
Total Variable Rate Mortgage Loans	$	207,545			3.51	%	$	2,699	$	70,045
Total Mortgage Loans	$	1,091,137			4.06	%	$	58,104	$	882,795

Consolidated Mortgage Loans	$	863,330			4.11	%	$	52,846	$	822,970
Consolidated Deferred Financing Fees		(1,431	)	n/a			n/a		n/a
Unconsolidated Mortgage Loans		227,807			3.86	%		66,992		195,474
Unconsolidated Deferred Financing Fees ⁽³⁾		(1,268	)	n/a			n/a		n/a
First Lien Term Loan ⁽¹⁾		383,266			8.20	%		31,446		383,266		December 2022	December 2023
Second Lien Term Loan ⁽¹⁾		561,433			8.92	%		50,092		561,433	⁽⁴⁾	December 2022	December 2023
2018 FDP Term Loan		97,301			4.00	%		3,892		97,301		January 2023	January 2023
Term Loan Deferred Financing Fees		(10,111	)	n/a			n/a		n/a
First Lien Revolver		54,830			4.00	%		2,193		54,830		December 2022	December 2022
2020 FDP Partnership Loan		54,400			15.00	%		8,160		54,400		December 2027	December 2027
Total	$	2,229,558			6.25	%	$	215,622	$	2,169,675
Amortization of Deferred Financing Fees	0				0.24	%	—		—
Effective Interest Rate	$	2,229,558			6.49	%	$	215,622	$	2,169,675

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

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

(3)

(4)	The balance at maturity is subject to increase as additional interest accrues to the principal balances of the loans.

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios ⁽¹⁾

	June 30, 2021
Debt Yield Ratio
Maintain a minimum Debt Yield Ratio (Senior) of 11.35% from and after June 30, 2021	20.9%
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	9.0%
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	$104.9 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 June 30, 2021, 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.

Pennsylvania Real Estate Investment Trust

Forward Looking Statements

FORWARD LOOKING STATEMENTS

This Quarterly Supplemental and Operating Information for the quarter ended June 30, 2021, 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 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;

•

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;

•

the frequency, severity and potential impact of extreme weather events at or near our properties, including potential property damage, some or all of which may not be covered by insurance, the potential effect on traffic and sales, and the potential increased costs of insurance coverage;

•

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 herein and in our Annual Report on Form 10-K for the year ended December 31, 2020 and in our Quarterly Report on Form 10-Q for the quarterly period ended March 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 six months ended June 30, 2021 and 2020, to show the effect of such items as gain or loss on debt extinguishment (including accelerated amortization of financing costs), impairment of assets, provision for employee separation expense, insurance recoveries or losses, net, gain on derecognition of property, gain/loss on hedge ineffectiveness and reorganization expenses which had an effect on our results of operations, but are not, in our opinion, indicative of our ongoing operating performance.

We believe that FFO is helpful to management and investors as a measure of operating performance because it excludes various items included in net loss that do not relate to or are not indicative of operating performance, such as gains on sales of operating real estate and depreciation and amortization of real estate, among others. We believe that Funds From Operations, as adjusted, is helpful to management and investors as a measure of operating performance because it adjusts FFO to exclude items that management does not believe are indicative of our operating performance, such as provision for employee separation expense, gain on hedge ineffectiveness and reorganization expenses.

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, insurance recoveries and losses, net, provision for employee separation expenses, project costs and other expenses, interest expense, reorganization expenses, equity in loss/income of partnerships, gain on extinguishment of debt, gain/loss on sale of real estate and gain/loss on sales of non-operating real estate.

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) non-cash compensation charges, (5) capitalized leasing costs, 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.