PHILADELPHIA, Feb. 13, 2019 /PRNewswire/ -- PREIT (NYSE:
PEI) today reported results for the quarter and year ended
December 31, 2018. A
description of each non-GAAP financial measure used in this release
and the related reconciliation to the comparable GAAP financial
measure are located in the tables accompanying this release.
|
Quarter
Ended
December
31,
|
|
Year
Ended
December
31,
|
(per share
amounts)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net loss - basic and
diluted
|
$(1.23)
|
|
$(0.03)
|
|
$(1.98)
|
|
$(0.84)
|
FFO
|
$0.42
|
|
$0.44
|
|
$1.43
|
|
$1.58
|
FFO, as
adjusted
|
$0.52
|
|
$0.51
|
|
$1.54
|
|
$1.67
|
FFO from assets sold
in 2018
|
--
|
|
$(0.01)
|
|
--
|
|
$(0.09)
|
FFO, as adjusted for
assets sold
|
$0.52
|
|
$0.50
|
|
$1.54
|
|
$1.58
|
Highlights from the quarter include:
- Same Store NOI increased 0.3% for the year ended December 31, 2018 and decreased by 4.3% for the
quarter compared to the same period last year.
- Core Mall NOI-weighted sales per square foot reached
$525. Core mall sales per square foot
reached an all time high of $510.
- Total Occupancy at Core Malls improved 100 basis points
sequentially; non-anchor occupancy at core malls increased 150
basis points sequentially.
- Total Leased space at Core Malls improved 140 basis points
sequentially.
- Average renewal spreads during the quarter were 10.0% for
wholly-owned, under 10,000 square foot transactions.
- Including larger-format and unconsolidated transactions,
average renewal spreads were 6.3% for the quarter.
- During the quarter, key differentiated uses opened including:
Dave & Buster's at Capital City Mall, 1776 at Cherry Hill Mall
and Belk, Tilt and Onelife Fitness at Valley Mall.
"Our disciplined approach to low-productivity asset sales and
proactive department store repositioning along with tenant
diversification has resulted in a quality portfolio with
densification opportunities," said Joseph
F. Coradino, CEO of PREIT. "The work we're doing in
this milestone-marked year as we complete many of the anchor and
redevelopment projects underway sets the stage for a stronger
Company in 2020 and beyond. The early results from this
effort are evident with core portfolio sales reaching $510 per square foot and traffic up 5% during the
holidays at properties that have undergone remerchandising, paving
the way for a solid NOI growth forecast despite a rapidly changing
environment."
Primary Factors Affecting Financial Results for the
Quarters Ended December 31, 2018
compared to December 31,
2017:
- Portfolio Same Store NOI was impacted by the following
items:
-
- Lost revenue from tenants who filed for bankruptcy protection:
($0.8 million),
- Incremental co-tenancy compared to prior year quarter:
($0.2 million),
- Lost revenue from terminated tenants: ($0.6 million),
- Lower common area revenue: ($1.4
million),
- Higher CAM and real estate tax expenses: ($1.4 million),
- Increased lease termination revenue: $1.1 million, and
- Increased revenue from anchor replacements and other leasing
activity: $0.4 million.
- Previous asset sales contributed to a $0.4 million, or $0.01 per share, FFO decline.
- During the quarter, we recorded a gain on sale of $8.1 million related to the sale of a land parcel
at Exton Square to a multifamily developer.
- We recorded $103.2 million in
impairments related to non-core properties and other assets.
A reconciliation of Funds From Operations (FFO) between current
and prior year periods is included in the financial tables
accompanying this release.
Leasing and Redevelopment
- Excluding Fashion District Philadelphia, 647,000 square feet of
leases are signed for future openings.
- At Moorestown Mall, HomeSense and Five Below opened in the
former Macy's box. Sierra Trading Post will open in early 2019 and
a lease with Michael's was executed.
- At Willow Grove Park,
construction continues on the 51,000 square foot Studio Movie Grill
which is now projected to open in Q1 2020. The twelve screen Studio
Movie Grill will be joined by other dining and entertainment
tenants, for which leases are being negotiated, to replace a former
JC Penney store.
- At Valley Mall, Tilt Studio opened in 48,000 square feet of a
former Macy's box along with Onelife Fitness, which occupies the
remaining 70,000 square feet. Belk also opened in 123,000 square
feet replacing a former Bon-Ton that was proactively recaptured
prior to its bankruptcy filing. During the quarter, the Company
signed a lease with DICK's Sporting Goods to replace a former Sears
that was acquired earlier in the year.
- At Capital City Mall, Dave & Buster's opened in 28,000
square feet.
- At Fashion District Philadelphia, leases for over 85% of the
leasable area are signed or in active negotiation. Noteworthy
commitments joining Century 21 and Burlington include H&M, Nike, Forever 21,
AMC Theaters, Round One, City Winery, Ulta, Columbia Sportswear and
Guess Factory. Grand opening is planned for September 2019.
- At Plymouth Meeting Mall, work continues to replace a former
Macy's with five new tenants. All five tenants are expected to open
in October 2019.
- During 2018, we raised $1.2
billion in proceeds through financing activities and asset
sales, underscoring our ability to creatively access capital
markets to fund redevelopment activity.
Retail Operations
The following tables set forth information regarding sales per
square foot and occupancy in the Company's mall portfolio,
including unconsolidated properties:
A reconciliation of portfolio sales per square foot
(1) can be found below:
Comp store sales for
the rolling twelve months ended December 31, 2017
|
$475
|
Organic sales
growth
|
16
|
Impact of non-core
malls
|
19
|
Core mall comp
store sales for the rolling twelve months ended December 31,
2018
|
$510
|
|
|
(1)
|
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.
|
2019 Outlook
The Company is introducing its earnings guidance for the year
ending December 31, 2019 of GAAP Net
loss between ($0.55) and ($0.40) per diluted share and estimates FFO for
the year will be between $1.14 and
$1.29 per diluted share. FFO,
as adjusted per share is expected to be between $1.20 and $1.34. Same Store NOI, excluding
termination revenue is expected to grow between 1.0% and 1.9% with
wholly-owned properties in the range of 1.5% to 2.6% and joint
venture properties declining between (2.7%) and (2.4%).
A reconciliation between GAAP net loss and FFO is as
follows:
|
2019 Guidance
Range
|
(Estimates per
diluted share)
|
Low
|
High
|
Net loss attributable
to common shareholders
|
$
(0.55)
|
$
(0.40)
|
Depreciation and
amortization, non-controlling interest and other
|
1.72
|
1.68
|
FFO per
share
|
$1.14
|
$1.29
|
Mortgage Loan
defeasance
|
0.06
|
0.06
|
FFO per share, as
adjusted
|
$
1.20
|
$
1.34
|
Our guidance assumes the defeasance of the mortgage loan secured
by Capital City Mall during the first quarter of 2019.
Detailed guidance assumptions are included herein in our
Financial tables.
Our 2019 guidance is based on our current assumptions and
expectations about market conditions, our projections regarding
occupancy, retail sales and rental rates, and planned capital
spending. Our guidance is forward-looking, and is 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.
Conference Call Information
Management has scheduled a conference call for 11:00 a.m. Eastern Time on Thursday, February 14,
2019, 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 3088886, at least five minutes before the
scheduled start time. 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 best results when listening to the webcast,
the Company recommends using Flash Player.
For interested individuals unable to join the conference call,
the online archive of the webcast will also be available for one
year following the call.
About PREIT
PREIT (NYSE: PEI) is a publicly traded real estate investment
trust that owns and manages 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. Since
2012, the Company has driven a transformation guided by an emphasis
on portfolio quality and balance sheet strength driven by
disciplined capital expenditures. Additional information is
available at www.preit.com or on Twitter or LinkedIn.
Rounding
Certain summarized information in the tables above may not total
due to rounding.
Definitions
Funds From Operations
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 gains and losses on sales of
operating properties, plus real estate depreciation and
amortization, and after adjustments for unconsolidated partnerships
and joint ventures to reflect funds from operations on the same
basis. 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 income 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 income and net cash provided by 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 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
FFO.
We also present Funds From Operations, as adjusted, and Funds
From Operations per diluted share and OP Unit, as adjusted, which
are non-GAAP measures, for the quarters and years ended
December 31, 2018 and 2017,
respectively, to show the effect of such items as loss on
redemption of preferred shares, provision for employee separation
expense, insurance recoveries, prepayment penalties, accelerated
amortization of financing costs, loss on hedge ineffectiveness, and
impairment of a mortgage loan which had an effect on our results of
operations, but are not, in our opinion, indicative of our ongoing
operating performance.
We believe that FFO is helpful to management and investors
as a measure of operating performance because it excludes various
items included in net income that do not relate to or are not
indicative of operating performance, such as gains on sales of
operating real estate and depreciation and amortization of real
estate, among others. We believe that Funds From Operations, as
adjusted, is helpful to management and investors as a measure of
operating performance because it adjusts FFO to exclude items that
management does not believe are indicative of our operating
performance, such as loss on redemption of preferred shares,
provision for employee separation expense, insurance recoveries,
prepayment penalties, accelerated amortization of financing costs,
loss on hedge ineffectiveness, and impairment of a mortgage
loan.
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 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. It is not
indicative of funds available for our cash needs, including our
ability to make cash distributions. We believe that NOI is
helpful to management and investors as a measure of operating
performance because it is an indicator of the return on property
investment, and provides a method of comparing property performance
over time. We believe that net income is the most directly
comparable GAAP measurement to NOI.
NOI excludes other income, general and administrative expenses,
provision for employee separation expenses, interest expense,
depreciation and amortization, impairment of assets, gains on sale
of interest in non operating real estate, gain/adjustments to gain
on sale of interest in real estate by equity method investee,
gains/losses on sales of interests in real estate, net, project
costs, insurance recoveries and other expenses.
Same Store NOI is calculated using retail properties owned for
the full periods presented and excludes properties acquired,
disposed, under redevelopment or designated as non-core during the
periods presented. In 2018, Wyoming Valley Mall was
designated as non-core. In 2019, Exton Square and Valley View
Malls were designated as non-core and will be excluded from Same
Store NOI. Non Same Store NOI is calculated using the retail
properties excluded from the calculation of Same Store NOI.
Financial Information of our Unconsolidated Properties
The non-GAAP financial measures of FFO and NOI presented in this
press release incorporate financial information attributable to our
share of unconsolidated properties. This proportionate financial
information is also non-GAAP financial information, but we believe
that it is helpful information because it reflects the
proportionate contribution from our unconsolidated properties that
are owned through investments accounted for under GAAP using the
equity method of accounting. Under such method, earnings from
these unconsolidated partnerships are recorded in our statements of
operations prepared in accordance with GAAP under the caption
entitled "Equity in income of partnerships."
To derive the proportionate financial information from our
unconsolidated properties, we multiplied the percentage of our
economic interest in each partnership on a property-by-property
basis by each line item. Under the partnership agreements
relating to our current unconsolidated partnerships with third
parties, we own a 25% to 50% economic interest in such
partnerships, and there are generally no provisions in such
partnership agreements relating to special non-proportionate
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 rate share of the revenue and expenses of our
unconsolidated partnerships, we do not have a direct legal claim to
the assets, liabilities, revenues or expenses of the unconsolidated
partnerships beyond our rights as an equity owner in the event of
any liquidation of such entity. Our percentage ownership is
not necessarily indicative of the legal and economic implications
of our ownership interest. Accordingly, NOI and FFO results
based on our share of the results of unconsolidated partnerships do
not represent cash generated from our investments in these
partnerships.
Core Properties
Core Properties include all operating retail properties except
for Exton Square Mall, Valley View Mall, Wyoming Valley Mall and
Fashion District Philadelphia, which is currently under
redevelopment. Core Malls excludes these properties, power
centers and Gloucester Premium Outlets.
Forward Looking Statements
This press release contains certain forward-looking statements
that can be identified by the use of words such as "anticipate,"
"believe," "estimate," "expect," "intend," "may," "project"
or 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:
- changes in the retail and real estate industries, including
consolidation and store closings, particularly among anchor
tenants;
- current economic conditions 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;
- acts of 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 the liquidation preference of our
preferred shares and our high leverage ratio;
- our ability to refinance our existing indebtedness when it
matures, on favorable terms or at all;
- our ability to raise capital, including through sales of
properties or interests in properties and through the issuance of
equity or equity-related securities if market conditions are
favorable; 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, 2017 in the section entitled "Item
1A. Risk Factors." We do not intend to update or revise any
forward-looking statements to reflect new information, future
events or otherwise.
** Quarterly
supplemental financial and operating
**
** information will be
available on www.preit.com
**
CONTACT: AT THE COMPANY
Robert McCadden
EVP & CFO
(215) 875-0735
Heather Crowell
SVP, Strategy & Communications
(215) 454-1241
heather.crowell@preit.com
|
2019
Guidance
|
|
2019
Estimate
|
|
2018
Actual
|
(in millions,
except per share amounts)
|
Low
|
|
Midpoint
|
|
High
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(17.9)
|
|
|
$
|
(10.6)
|
|
|
$
|
(3.3)
|
|
|
$
|
(126.5)
|
|
Depreciation and
amortization
|
135.0
|
|
|
133.5
|
|
|
132.0
|
|
|
140.3
|
|
Gains on sales of
operating assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.3)
|
|
Impairment of real
estate assets
|
—
|
|
|
—
|
|
|
—
|
|
|
129.4
|
|
Preferred share
dividends
|
(27.4)
|
|
|
(27.4)
|
|
|
(27.4)
|
|
|
(27.4)
|
|
Funds From
Operations
|
$
|
89.7
|
|
|
$
|
95.5
|
|
|
$
|
101.3
|
|
|
$
|
111.5
|
|
Adjustments:
|
|
|
|
|
|
|
|
Impairment of
mortgage loan receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
8.1
|
|
Provision for
employee separation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
Insurance recoveries
and other
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
Mortgage loan
defeasance
|
4.7
|
|
|
4.6
|
|
|
4.5
|
|
|
—
|
|
FFO as
adjusted
|
$
|
94.4
|
|
|
$
|
100.1
|
|
|
$
|
105.8
|
|
|
$
|
120.4
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per share
|
$
|
(0.58)
|
|
|
$
|
(0.49)
|
|
|
$
|
(0.40)
|
|
|
$
|
(1.98)
|
|
FFO per
share
|
$
|
1.14
|
|
|
$
|
1.21
|
|
|
$
|
1.29
|
|
|
$
|
1.42
|
|
FFO, as adjusted
per share
|
$
|
1.20
|
|
|
$
|
1.27
|
|
|
$
|
1.34
|
|
|
$
|
1.54
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(17.9)
|
|
|
$
|
(10.6)
|
|
|
$
|
(3.3)
|
|
|
$
|
(126.5)
|
|
Preferred share
dividends
|
(27.4)
|
|
|
(27.4)
|
|
|
(27.4)
|
|
|
(27.4)
|
|
Noncontrolling
interest
|
4.8
|
|
|
4.0
|
|
|
3.2
|
|
|
16.2
|
|
Dividends on unvested
restricted shares
|
(0.5)
|
|
|
(0.5)
|
|
|
(0.5)
|
|
|
(0.5)
|
|
Net loss used to
calculate earnings per share
|
$
|
(41.0)
|
|
|
$
|
(34.5)
|
|
|
$
|
(28.0)
|
|
|
$
|
(138.2)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares
|
70.3
|
|
|
70.3
|
|
|
70.3
|
|
|
69.7
|
|
Weighted average
shares, including OP units
|
78.7
|
|
|
78.7
|
|
|
78.7
|
|
|
78.3
|
|
2019
Guidance
|
|
2019
Estimate
|
|
2018
Actual
|
|
2019
Midpoint
vs. 2018
|
|
Same Store NOI
Growth
|
|
Low
|
|
Midpoint
|
|
High
|
|
|
|
Low
|
|
Midpoint
|
|
High
|
Same Store NOI,
excluding termination revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly-owned
properties
|
$
|
191.6
|
|
|
$
|
192.6
|
|
|
$
|
193.6
|
|
|
$
|
188.7
|
|
|
$
|
3.9
|
|
(1)
|
1.5
|
%
|
|
2.1
|
%
|
|
2.6
|
%
|
Unconsolidated
properties
|
28.9
|
|
|
29.0
|
|
|
29.0
|
|
|
29.7
|
|
|
(0.7)
|
|
|
(2.7)
|
%
|
|
(2.4)
|
%
|
|
(2.4)
|
%
|
|
220.5
|
|
|
221.6
|
|
|
222.6
|
|
|
218.4
|
|
|
3.2
|
|
|
1.0
|
%
|
|
1.5
|
%
|
|
1.9
|
%
|
Non-Same Store
NOI
|
13.0
|
|
|
13.2
|
|
|
13.4
|
|
|
20.1
|
|
|
(6.9)
|
|
(2)
|
|
|
|
|
|
NOI, excluding lease
termination revenue
|
233.5
|
|
|
234.8
|
|
|
236.0
|
|
|
238.5
|
|
|
(3.7)
|
|
|
|
|
|
|
|
Lease termination
revenue of consolidated and unconsolidated properties
|
2.0
|
|
|
3.0
|
|
|
4.0
|
|
|
9.2
|
|
|
(6.2)
|
|
|
|
|
|
|
|
Total
NOI
|
$
|
235.5
|
|
|
$
|
237.8
|
|
|
$
|
240.0
|
|
|
$
|
247.7
|
|
|
$
|
(9.9)
|
|
|
|
|
|
|
|
General and
administrative and leasing expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
(38.5)
|
|
|
(38.2)
|
|
|
(37.8)
|
|
|
(38.3)
|
|
|
0.1
|
|
|
|
|
|
|
|
Leasing costs
expensed under ASC 842
|
(5.5)
|
|
|
(5.3)
|
|
|
(5.1)
|
|
|
—
|
|
|
(5.3)
|
|
(3)
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
revenues
|
1.0
|
|
|
1.1
|
|
|
1.2
|
|
|
4.3
|
|
|
(3.2)
|
|
(4)
|
|
|
|
|
|
Land sale
gains
|
5.0
|
|
|
7.5
|
|
|
10.0
|
|
|
8.1
|
|
|
(0.6)
|
|
|
|
|
|
|
|
Provision for
employee separation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.1)
|
|
|
1.1
|
|
|
|
|
|
|
|
Impairment of
mortgage loan receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.1)
|
|
|
8.1
|
|
|
|
|
|
|
|
Other, including
non-real estate depreciation
|
(2.2)
|
|
|
(2.1)
|
|
|
(2.0)
|
|
|
(1.5)
|
|
|
(0.6)
|
|
|
|
|
|
|
|
Capital
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
gross
|
(87.5)
|
|
|
(87.7)
|
|
|
(87.9)
|
|
|
(83.3)
|
|
|
(4.4)
|
|
|
|
|
|
|
|
Capitalized
interest
|
14.0
|
|
|
14.4
|
|
|
14.8
|
|
|
11.1
|
|
|
3.3
|
|
|
|
|
|
|
|
Preferred share
dividends
|
(27.4)
|
|
|
(27.4)
|
|
|
(27.4)
|
|
|
(27.4)
|
|
|
—
|
|
|
|
|
|
|
|
Mortgage loan
defeasance
|
(4.7)
|
|
|
(4.6)
|
|
|
(4.5)
|
|
|
—
|
|
|
(4.6)
|
|
|
|
|
|
|
|
Funds from
Operations (FFO)
|
$
|
89.7
|
|
|
$
|
95.5
|
|
|
$
|
101.3
|
|
|
$
|
111.5
|
|
|
$
|
(16.0)
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of
mortgage loan receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
8.1
|
|
|
(8.1)
|
|
|
|
|
|
|
|
Provision for
employee separation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
(1.1)
|
|
|
|
|
|
|
|
Insurance recoveries
and other
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
|
0.3
|
|
|
|
|
|
|
|
Mortgage loan
defeasance
|
4.7
|
|
|
4.6
|
|
|
4.5
|
|
|
—
|
|
|
4.6
|
|
|
|
|
|
|
|
FFO as
adjusted
|
$
|
94.4
|
|
|
$
|
100.1
|
|
|
$
|
105.8
|
|
|
$
|
120.4
|
|
|
$
|
(20.3)
|
|
|
|
|
|
|
|
FFO per
share
|
$
|
1.14
|
|
|
$
|
1.21
|
|
|
$
|
1.29
|
|
|
$
|
1.42
|
|
|
$
|
(0.21)
|
|
|
|
|
|
|
|
FFO, as adjusted
per share
|
$
|
1.20
|
|
|
$
|
1.27
|
|
|
$
|
1.34
|
|
|
$
|
1.54
|
|
|
$
|
(0.27)
|
|
|
|
|
|
|
|
|
(1)(2)(3)(4) Refer to the table
"Footnotes to 2019 Guidance" on the following page for a
description of these items.
|
Footnotes to 2019
Guidance
|
(1) Key
drivers of this change include:
|
|
Incremental
impact from anchor openings
|
$
|
3.9
|
|
Store openings,
net of closings
|
2.5
|
|
Common area
revenues
|
1.9
|
|
CAM and real
estate tax increases
|
(3.5)
|
|
Other
changes
|
1.1
|
|
Bankruptcy
reserve
|
(2.0)
|
|
Total
change
|
$
|
3.9
|
|
|
|
(2)Key
drivers of this change include:
|
|
Wyoming Valley Mall
mid-year disposition
|
(4.3)
|
|
Valley View Mall and
Exton Square Mall
|
(3.2)
|
|
Fashion District
Philadelphia
|
0.6
|
|
|
$
|
(6.9)
|
|
|
|
(3)Certain
initial direct leasing costs will be expensed beginning January
2019 under new lease accounting standard (ASC 842)
|
|
|
(4)Key
drivers of this change include:
|
|
Historic tax
credits ended in 2018
|
(0.8)
|
|
Sale of mortgage
loan
|
(0.9)
|
|
Lower corporate
revenue and other income
|
(1.5)
|
|
|
$
|
(3.2)
|
|
STATEMENTS OF
OPERATIONS
|
|
Quarter
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
2018
|
|
December 31,
2017
|
|
December 31,
2018
|
|
December 31,
2017
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
Real estate
revenue:
|
|
|
|
|
|
|
|
|
Base rent
|
|
$
|
58,896
|
|
|
$
|
59,820
|
|
|
$
|
226,609
|
|
|
$
|
230,898
|
|
Expense
reimbursements
|
|
26,328
|
|
|
27,473
|
|
|
106,522
|
|
|
109,454
|
|
Percentage
rent
|
|
3,389
|
|
|
3,143
|
|
|
4,291
|
|
|
4,366
|
|
Lease termination
revenue
|
|
1,563
|
|
|
481
|
|
|
8,729
|
|
|
2,760
|
|
Other real estate
revenue
|
|
5,149
|
|
|
7,054
|
|
|
12,078
|
|
|
14,046
|
|
Total real estate
revenue
|
|
95,325
|
|
|
97,971
|
|
|
358,229
|
|
|
361,524
|
|
Other
income
|
|
717
|
|
|
1,794
|
|
|
4,171
|
|
|
5,966
|
|
Total
revenue
|
|
96,042
|
|
|
99,765
|
|
|
362,400
|
|
|
367,490
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Property operating
expenses:
|
|
|
|
|
|
|
|
|
CAM and real estate
taxes
|
|
(28,666)
|
|
|
(27,289)
|
|
|
(113,235)
|
|
|
(111,275)
|
|
Utilities
|
|
(3,847)
|
|
|
(3,745)
|
|
|
(15,990)
|
|
|
(16,151)
|
|
Other property
operating expenses
|
|
(3,257)
|
|
|
(3,761)
|
|
|
(12,007)
|
|
|
(12,879)
|
|
Total property
operating expenses
|
|
(35,770)
|
|
|
(34,795)
|
|
|
(141,232)
|
|
|
(140,305)
|
|
Depreciation and
amortization
|
|
(32,611)
|
|
|
(34,169)
|
|
|
(133,116)
|
|
|
(128,822)
|
|
General and
administrative expenses
|
|
(10,373)
|
|
|
(10,175)
|
|
|
(38,342)
|
|
|
(36,736)
|
|
Provision for
employee separation expenses
|
|
(183)
|
|
|
(246)
|
|
|
(1,139)
|
|
|
(1,299)
|
|
Project costs and
other expenses
|
|
(252)
|
|
|
(223)
|
|
|
(693)
|
|
|
(768)
|
|
Insurance recoveries,
net
|
|
714
|
|
|
—
|
|
|
689
|
|
|
—
|
|
Total operating
expenses
|
|
(78,475)
|
|
|
(79,608)
|
|
|
(313,833)
|
|
|
(307,930)
|
|
Interest expense,
net
|
|
(15,291)
|
|
|
(14,332)
|
|
|
(61,355)
|
|
|
(58,430)
|
|
Impairment of
assets
|
|
(103,201)
|
|
|
(51)
|
|
|
(137,487)
|
|
|
(55,793)
|
|
Total
expenses
|
|
(196,967)
|
|
|
(93,991)
|
|
|
(512,675)
|
|
|
(422,153)
|
|
(Loss) income before
equity in income of partnerships, gains on sales of real estate and
non operating real estate
|
|
(100,925)
|
|
|
5,774
|
|
|
(150,275)
|
|
|
(54,663)
|
|
Equity in income of
partnerships
|
|
3,189
|
|
|
2,223
|
|
|
11,375
|
|
|
14,367
|
|
(Adjustment to gain)
gain on sale of real estate by equity method investee
|
|
—
|
|
|
(174)
|
|
|
2,772
|
|
|
6,539
|
|
Gains (losses) on
sales of interests in real estate, net
|
|
776
|
|
|
8
|
|
|
1,525
|
|
|
(361)
|
|
Gains on sales of
non-operating real estate
|
|
8,126
|
|
|
784
|
|
|
8,100
|
|
|
1,270
|
|
Net (loss)
income
|
|
(88,834)
|
|
|
8,615
|
|
|
(126,503)
|
|
|
(32,848)
|
|
Less: net loss
(income) attributed to noncontrolling interest
|
|
10,052
|
|
|
268
|
|
|
16,174
|
|
|
6,895
|
|
Net (loss) income
attributable to PREIT
|
|
(78,782)
|
|
|
8,883
|
|
|
(110,329)
|
|
|
(25,953)
|
|
Less: preferred share
dividends
|
|
(6,844)
|
|
|
(7,048)
|
|
|
(27,375)
|
|
|
(27,845)
|
|
Less: loss on
redemption of preferred shares
|
|
—
|
|
|
(4,103)
|
|
|
—
|
|
|
(4,103)
|
|
Net loss
attributable to PREIT common shareholders
|
|
$
|
(85,626)
|
|
|
$
|
(2,268)
|
|
|
$
|
(137,704)
|
|
|
$
|
(57,901)
|
|
Basic and diluted
loss per share(1)
|
|
$
|
(1.23)
|
|
|
$
|
(0.03)
|
|
|
$
|
(1.98)
|
|
|
$
|
(0.84)
|
|
Weighted average
number of shares outstanding for diluted EPS
|
|
69,840
|
|
|
69,496
|
|
|
69,749
|
|
|
69,364
|
|
The following table presents a reconciliation of net income
(loss) determined in accordance with GAAP to (i) Funds from
operations attributable to common shareholders and OP Unit holders,
(ii) Funds from operations, as adjusted, attributable to common
shareholders and OP Unit holders , (iii) Funds from operations, as
adjusted for assets sold, (iv) Funds from operations attributable
to common shareholders and OP Unit holders per diluted share and OP
Unit (v) Funds from operations, as adjusted, attributable to common
shareholders and OP Unit holders per diluted share and OP Unit, and
(vi) Funds from operations, as adjusted for assets sold per diluted
share and OP Unit for the quarter and twelve months ended
December 31, 2018 and 2017:
|
Quarter Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(in thousands,
except per share amounts)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net (loss)
income
|
$
|
(88,834)
|
|
|
$
|
8,615
|
|
|
$
|
(126,503)
|
|
|
$
|
(32,848)
|
|
Depreciation
and amortization on real estate
|
|
|
|
|
|
|
|
Consolidated properties
|
32,265
|
|
|
33,797
|
|
|
131,694
|
|
|
127,327
|
|
PREIT's share of equity method investments
|
2,095
|
|
|
2,481
|
|
|
8,612
|
|
|
10,974
|
|
Losses (gains) on sale of real estate by equity method
investee
|
—
|
|
|
174
|
|
|
(2,772)
|
|
|
(6,539)
|
|
(Gains) losses on sales of interests in real estate
|
(776)
|
|
|
(8)
|
|
|
(1,525)
|
|
|
361
|
|
Impairment of real estate
assets
|
95,079
|
|
|
51
|
|
|
129,365
|
|
|
55,793
|
|
Preferred share
dividends
|
(6,844)
|
|
|
(7,048)
|
|
|
(27,375)
|
|
|
(27,845)
|
|
Loss on redemption of
preferred shares
|
—
|
|
|
(4,103)
|
|
|
—
|
|
|
(4,103)
|
|
Funds from operations
attributable to common shareholders and OP Unit holders
|
$
|
32,985
|
|
|
$
|
33,959
|
|
|
$
|
111,496
|
|
|
$
|
123,120
|
|
Loss on redemption of
preferred shares
|
—
|
|
|
4,103
|
|
|
—
|
|
|
4,103
|
|
Provision for
employee separation expense
|
183
|
|
|
246
|
|
|
1,139
|
|
|
1,299
|
|
Insurance recoveries,
net
|
(714)
|
|
|
—
|
|
|
(689)
|
|
|
—
|
|
Mortgage
impairment
|
8,122
|
|
|
—
|
|
|
8,122
|
|
|
—
|
|
Prepayment penalty
and accelerated amortization of financing costs
|
—
|
|
|
1,557
|
|
|
363
|
|
|
1,557
|
|
Funds from
operations, as adjusted, attributable to common shareholders and OP
Unit holders
|
$
|
40,576
|
|
|
$
|
39,865
|
|
|
$
|
120,431
|
|
|
$
|
130,079
|
|
Less: Funds from
operations from assets sold in 2018
|
—
|
|
|
(439)
|
|
|
(311)
|
|
|
(7,058)
|
|
Funds from
operations, as adjusted for assets sold
|
$
|
40,576
|
|
|
$
|
39,426
|
|
|
$
|
120,120
|
|
|
$
|
123,021
|
|
|
|
|
|
|
|
|
|
Funds from operations
attributable to common shareholders and OP Unit holders per diluted
share and OP Unit
|
$
|
0.42
|
|
|
$
|
0.44
|
|
|
$
|
1.43
|
|
|
$
|
1.58
|
|
Funds from
operations, as adjusted, attributable to common shareholders and OP
Unit holders per diluted share and OP Unit
|
$
|
0.52
|
|
|
$
|
0.51
|
|
|
$
|
1.54
|
|
|
$
|
1.67
|
|
Funds from
operations, as adjusted for assets sold per diluted share and OP
Unit
|
$
|
0.52
|
|
|
$
|
0.50
|
|
|
$
|
1.54
|
|
|
$
|
1.58
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
69,840
|
|
|
69,496
|
|
|
69,749
|
|
|
69,364
|
|
Weighted average
effect of full conversion of OP Units
|
8,273
|
|
|
8,278
|
|
|
8,273
|
|
|
8,297
|
|
Effect of common
share equivalents
|
23
|
|
|
—
|
|
|
203
|
|
|
93
|
|
Total weighted
average shares outstanding, including OP Units
|
78,136
|
|
|
77,774
|
|
|
78,225
|
|
|
77,754
|
|
NOI for the quarters ended December 31, 2018 and
2017:
|
|
Same
Store
|
|
Non-Same
Store
|
|
Total
|
(In
thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
NOI from Consolidated
properties
|
|
$
|
57,781
|
|
|
$
|
60,653
|
|
|
$
|
1,774
|
|
|
$
|
2,523
|
|
|
$
|
59,555
|
|
|
$
|
63,176
|
|
NOI from equity
method investments at ownership share
|
|
7,880
|
|
|
7,926
|
|
|
95
|
|
|
533
|
|
|
7,975
|
|
|
8,459
|
|
Total NOI
|
|
$
|
65,661
|
|
|
$
|
68,579
|
|
|
$
|
1,869
|
|
|
$
|
3,056
|
|
|
$
|
67,530
|
|
|
$
|
71,635
|
|
Less: lease
termination revenue from consolidated and unconsolidated
properties
|
|
1,575
|
|
|
513
|
|
|
—
|
|
|
14
|
|
|
1,575
|
|
|
527
|
|
Total NOI - excluding
lease termination revenue
|
|
$
|
64,086
|
|
|
$
|
68,066
|
|
|
$
|
1,869
|
|
|
$
|
3,042
|
|
|
$
|
65,955
|
|
|
$
|
71,108
|
|
NOI for the twelve months ended December 31, 2018 and
2017:
|
|
Same
Store
|
|
Non-Same
Store
|
|
Total
|
(In
thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
NOI from Consolidated
properties
|
|
$
|
210,112
|
|
|
$
|
209,244
|
|
|
$
|
6,885
|
|
|
$
|
11,975
|
|
|
$
|
216,997
|
|
|
$
|
221,219
|
|
NOI from equity
method investments at ownership share
|
|
30,161
|
|
|
30,266
|
|
|
572
|
|
|
6,494
|
|
|
30,733
|
|
|
36,760
|
|
Total NOI
|
|
$
|
240,273
|
|
|
$
|
239,510
|
|
|
$
|
7,457
|
|
|
$
|
18,469
|
|
|
$
|
247,730
|
|
|
$
|
257,979
|
|
Less: lease
termination revenue from consolidated and unconsolidated
properties
|
|
9,183
|
|
|
3,142
|
|
|
35
|
|
|
85
|
|
|
9,218
|
|
|
3,227
|
|
Total NOI - excluding
lease termination revenue
|
|
$
|
231,090
|
|
|
$
|
236,368
|
|
|
$
|
7,422
|
|
|
$
|
18,384
|
|
|
$
|
238,512
|
|
|
$
|
254,752
|
|
The table below reconciles net income (loss) to NOI of our
consolidated properties for the quarters and twelve months ended
December 31, 2018 and 2017.
|
Quarter Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
(in
thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Net income
(loss)
|
$
|
(88,834)
|
|
|
$
|
8,615
|
|
|
$
|
(126,503)
|
|
|
$
|
(32,848)
|
|
|
Other
income
|
(717)
|
|
|
(1,794)
|
|
|
(4,171)
|
|
|
(5,966)
|
|
|
Depreciation and
amortization
|
32,611
|
|
|
34,169
|
|
|
133,116
|
|
|
128,822
|
|
|
General and
administrative expenses
|
10,373
|
|
|
10,175
|
|
|
38,342
|
|
|
36,736
|
|
|
Employee separation
expenses
|
183
|
|
|
246
|
|
|
1,139
|
|
|
1,299
|
|
|
Project costs and
other expenses
|
252
|
|
|
223
|
|
|
693
|
|
|
768
|
|
|
Insurance recoveries,
net
|
(714)
|
|
|
—
|
|
|
(689)
|
|
|
—
|
|
|
Interest expense,
net
|
15,291
|
|
|
14,332
|
|
|
61,355
|
|
|
58,430
|
|
|
Impairment of
assets
|
103,201
|
|
|
51
|
|
|
137,487
|
|
|
55,793
|
|
|
Equity in income of
partnerships
|
(3,189)
|
|
|
(2,223)
|
|
|
(11,375)
|
|
|
(14,367)
|
|
|
Adjustment to gains
(gains) on sale of real estate by equity method investee
|
—
|
|
|
174
|
|
|
(2,772)
|
|
|
(6,539)
|
|
|
Gains (losses) on
sales of interests in real estate, net
|
(776)
|
|
|
(8)
|
|
|
(1,525)
|
|
|
361
|
|
|
Gains on sales of non
operating real estate
|
(8,126)
|
|
|
(784)
|
|
|
(8,100)
|
|
|
(1,270)
|
|
|
NOI from consolidated
properties
|
59,555
|
|
|
63,176
|
|
|
216,997
|
|
|
221,219
|
|
|
Less: Non Same Store
NOI of consolidated properties
|
1,774
|
|
|
2,523
|
|
|
6,885
|
|
|
11,975
|
|
|
Same Store NOI from
consolidated properties
|
57,781
|
|
|
60,653
|
|
|
210,112
|
|
|
209,244
|
|
|
Less: Same Store
lease termination revenue
|
1,563
|
|
|
467
|
|
|
8,694
|
|
|
2,675
|
|
|
Same Store NOI
excluding lease termination revenue
|
$
|
56,218
|
|
|
$
|
60,186
|
|
|
$
|
201,418
|
|
|
$
|
206,569
|
|
|
The table below reconciles equity in income of partnerships to
NOI of equity method investments at ownership share for the
quarters and twelve months ended December 31, 2018 and
2017:
|
Quarter Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
(in
thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Equity in income of
partnerships
|
$
|
3,189
|
|
|
$
|
2,223
|
|
|
$
|
11,375
|
|
|
$
|
14,367
|
|
|
Other
income
|
(46)
|
|
|
(574)
|
|
|
(82)
|
|
|
(594)
|
|
|
Depreciation and
amortization
|
2,095
|
|
|
2,481
|
|
|
8,612
|
|
|
10,974
|
|
|
Interest and other
expenses
|
2,737
|
|
|
4,329
|
|
|
10,828
|
|
|
12,013
|
|
|
NOI from equity
method investments at ownership share
|
7,975
|
|
|
8,459
|
|
|
30,733
|
|
|
36,760
|
|
|
Less: Non Same Store
NOI from equity method investments at ownership
share
|
95
|
|
|
533
|
|
|
572
|
|
|
6,494
|
|
|
Same Store NOI of
equity method investments at ownership share
|
7,880
|
|
|
7,926
|
|
|
30,161
|
|
|
30,266
|
|
|
Less: Same Store
lease termination revenue
|
12
|
|
|
46
|
|
|
489
|
|
|
467
|
|
|
Same Store NOI from
equity method investments less lease termination revenue at
ownership share
|
$
|
7,868
|
|
|
$
|
7,880
|
|
|
$
|
29,672
|
|
|
$
|
29,799
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
ASSETS:
|
|
|
|
|
INVESTMENTS IN REAL
ESTATE, at cost:
|
|
|
|
|
Operating
properties
|
|
$
|
3,063,531
|
|
|
$
|
3,180,212
|
|
Construction in
progress
|
|
115,182
|
|
|
113,609
|
|
Land held for
development
|
|
5,881
|
|
|
5,881
|
|
Total investments in
real estate
|
|
3,184,594
|
|
|
3,299,702
|
|
Accumulated
depreciation
|
|
(1,118,582)
|
|
|
(1,111,007)
|
|
Net investments in
real estate
|
|
2,066,012
|
|
|
2,188,695
|
|
INVESTMENTS IN
PARTNERSHIPS, at equity:
|
|
131,124
|
|
|
216,823
|
|
OTHER
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
18,084
|
|
|
15,348
|
|
Tenant and other
receivables (net of allowance for doubtful accounts of $6,597 and
$7,248 at December 31, 2018 and 2017, respectively)
|
|
38,914
|
|
|
38,166
|
|
Intangible assets
(net of accumulated amortization of $15,543 and $13,117 at
December 31, 2018 and 2017, respectively)
|
|
17,868
|
|
|
17,693
|
|
Deferred costs and
other assets, net
|
|
110,805
|
|
|
112,046
|
|
Assets held for
sale
|
|
22,307
|
|
|
—
|
|
Total
assets
|
|
2,405,114
|
|
|
2,588,771
|
|
LIABILITIES:
|
|
|
|
|
Mortgage loans
payable, net
|
|
$
|
1,047,906
|
|
|
$
|
1,056,084
|
|
Term Loans,
net
|
|
547,289
|
|
|
547,758
|
|
Revolving
Facilities
|
|
65,000
|
|
|
53,000
|
|
Tenants' deposits and
deferred rent
|
|
15,400
|
|
|
11,446
|
|
Distributions in
excess of partnership investments
|
|
92,057
|
|
|
97,868
|
|
Fair value of
derivative instruments
|
|
3,010
|
|
|
20
|
|
Accrued expenses and
other liabilities
|
|
87,901
|
|
|
61,604
|
|
Total
liabilities
|
|
1,858,563
|
|
|
1,827,780
|
|
EQUITY:
|
|
546,551
|
|
|
760,991
|
|
Total liabilities and
equity
|
|
$
|
2,405,114
|
|
|
$
|
2,588,771
|
|
Changes in Funds from Operations for the Quarter Ended
December 31, 2018 (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)
|
|
Quarter Ended
December 31,
|
|
Per Diluted
Share and OP
Unit
|
|
Funds from
Operations December 31, 2017
|
|
$
|
33,959
|
|
|
$
|
0.44
|
|
|
Loss on redemption of
preferred shares
|
|
4,103
|
|
|
0.055
|
|
|
Provision for
employee separation expense
|
|
246
|
|
|
0.005
|
|
|
Prepayment penalty
and accelerated amortization of financing costs
|
|
1,557
|
|
|
0.020
|
|
|
Funds from
Operations, as adjusted December 31, 2017
|
|
$
|
39,865
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
Changes - 2017 to
2018
|
|
|
|
|
|
|
|
|
|
|
|
Contribution from
anchor replacements
|
|
420
|
|
|
0.005
|
|
|
Other changes in
revenues, net of reimbursable expenses
|
|
(1,163)
|
|
|
(0.010)
|
|
|
Impact from
bankruptcies
|
|
(772)
|
|
|
(0.010)
|
|
|
Impact of co-tenancy
claims
|
|
(154)
|
|
|
—
|
|
|
Impact of store
closures from terminated tenants
|
|
(568)
|
|
|
(0.005)
|
|
|
Lease termination
revenue
|
|
1,096
|
|
|
0.015
|
|
|
Common area revenues,
net
|
|
(1,454)
|
|
|
(0.020)
|
|
|
Other NOI
changes
|
|
(277)
|
|
|
(0.005)
|
|
|
Same Store NOI from
consolidated properties
|
|
(2,872)
|
|
|
(0.035)
|
|
|
Same Store NOI from
unconsolidated properties
|
|
(46)
|
|
|
—
|
|
|
Same Store
NOI
|
|
(2,918)
|
|
|
(0.035)
|
|
|
Non Same Store
NOI
|
|
(617)
|
|
|
(0.010)
|
|
|
Dilutive effect of
asset sales
|
|
(438)
|
|
|
(0.005)
|
|
|
General and
administrative expenses
|
|
(197)
|
|
|
(0.005)
|
|
|
Amortization of
historic tax credits
|
|
19
|
|
|
—
|
|
|
Gain on sale of
non-operating real estate, net
|
|
7,342
|
|
|
0.095
|
|
|
Other income
(expenses), net
|
|
(1,624)
|
|
|
(0.020)
|
|
|
Interest expense, net
of impact of asset sales
|
|
(1,060)
|
|
|
(0.015)
|
|
|
Preferred share
dividends
|
|
204
|
|
|
0.005
|
|
|
Increase in weighted
average shares
|
|
—
|
|
|
—
|
|
|
Funds from
Operations, as adjusted December 31, 2018
|
|
$
|
40,576
|
|
|
$
|
0.52
|
|
|
Provision for
employee separation expense
|
|
(183)
|
|
|
—
|
|
|
Insurance recoveries,
net
|
|
714
|
|
|
0.010
|
|
|
Mortgage
impairment
|
|
(8,122)
|
|
|
(0.105)
|
|
|
Funds from
Operations December 31, 2018
|
|
$
|
32,985
|
|
|
$
|
0.42
|
|
|
Changes in Funds from Operations for the Twelve Months
Ended 12/31/2018 (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)
|
|
Twelve Months
Ended
December 31,
|
|
Per Diluted
Share
and OP
Unit
|
|
Funds from
Operations December 31, 2017
|
|
$
|
123,120
|
|
|
$
|
1.58
|
|
|
Loss on redemption of
preferred shares
|
|
4,103
|
|
|
0.055
|
|
|
Provision for
employee separation expense
|
|
1,299
|
|
|
0.015
|
|
|
Prepayment penalty
and accelerated amortization of financing costs
|
|
1,557
|
|
|
0.020
|
|
|
Funds from
Operations, as adjusted December 31, 2017
|
|
$
|
130,079
|
|
|
$
|
1.67
|
|
|
|
|
|
|
|
|
Changes - 2017 to
2018
|
|
|
|
|
|
|
|
|
|
|
|
Contribution from
anchor replacements
|
|
4,203
|
|
|
0.055
|
|
|
Other changes in
revenues, net of reimbursable expenses
|
|
(573)
|
|
|
(0.005)
|
|
|
Impact from
bankruptcies
|
|
(2,678)
|
|
|
(0.035)
|
|
|
Impact of co-tenancy
claims
|
|
(897)
|
|
|
(0.010)
|
|
|
Impact of store
closures from terminated tenants
|
|
(1,269)
|
|
|
(0.015)
|
|
|
Impact of 2017 real
estate tax appeal
|
|
(1,775)
|
|
|
(0.025)
|
|
|
Lease termination
revenue
|
|
6,019
|
|
|
0.075
|
|
|
Common area revenues,
net
|
|
(394)
|
|
|
(0.005)
|
|
|
Other NOI
changes
|
|
(1,768)
|
|
|
(0.025)
|
|
|
Same Store NOI from
consolidated properties
|
|
868
|
|
|
0.010
|
|
|
Same Store NOI from
unconsolidated properties
|
|
(105)
|
|
|
—
|
|
|
Same Store
NOI
|
|
763
|
|
|
0.010
|
|
|
Non Same Store
NOI
|
|
(2,820)
|
|
|
(0.035)
|
|
|
Dilutive effect of
asset sales
|
|
(6,747)
|
|
|
(0.085)
|
|
|
General and
administrative expenses
|
|
(1,606)
|
|
|
(0.020)
|
|
|
Amortization of
historic tax credits
|
|
(939)
|
|
|
(0.010)
|
|
|
Gain on sale of
non-operating real estate
|
|
6,830
|
|
|
0.085
|
|
|
Other income
(expenses), net
|
|
(1,219)
|
|
|
(0.015)
|
|
|
Interest expense, net
of impact of asset sales
|
|
(4,380)
|
|
|
(0.055)
|
|
|
Preferred share
dividends
|
|
470
|
|
|
0.005
|
|
|
Increase in weighted
average shares
|
|
—
|
|
|
(0.010)
|
|
|
Funds from
Operations, as adjusted December 31, 2018
|
|
$
|
120,431
|
|
|
$
|
1.54
|
|
|
Provision for
employee separation expense
|
|
(1,139)
|
|
|
(0.015)
|
|
|
Insurance recoveries,
net
|
|
689
|
|
|
0.010
|
|
|
Mortgage
impairment
|
|
(8,122)
|
|
|
(0.105)
|
|
|
Accelerated
amortization of financing costs
|
|
(363)
|
|
|
(0.005)
|
|
|
Funds from
Operations December 31, 2018
|
|
$
|
111,496
|
|
|
$
|
1.43
|
|
|
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multimedia:http://www.prnewswire.com/news-releases/preit-reports-fourth-quarter-and-full-year-2018-results-300795355.html
SOURCE PREIT