PHILADELPHIA, May 5, 2021 /PRNewswire/ -- PREIT (NYSE:
PEI) today reported results for the three months ended March 31, 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
March 31,
|
|
|
(per share
amounts)
|
|
2021
|
|
|
2020
|
|
|
Net loss - basic and
diluted
|
|
$
|
(0.64)
|
|
|
$
|
(0.26)
|
|
|
FFO
|
|
$
|
(0.14)
|
|
|
$
|
0.14
|
|
|
FFO, as
adjusted
|
|
$
|
(0.15)
|
|
|
$
|
0.14
|
|
|
"The brick and mortar recovery is gaining momentum and we
believe our portfolio is poised to capitalize on this
momentum. The foundation we have created with a portfolio of
properties in high barrier-to-entry markets that accommodate a
broad array of uses as well as properties that have won the
in-market competitive battle for the consumer are seeing strong
results as the rebound continues," said Joseph F. Coradino, Chairman and CEO of PREIT.
"Traffic is improving across the portfolio with retailers
posting strong sales in March, which has led to improved
collections, increased liquidity and vigorous tenant demand
creating a robust pipeline of leasing activity."
- Same Store NOI, excluding lease termination revenue, decreased
21.2% for the three months ended March 31,
2021 compared to the three months ended March 31, 2020.
-
- The quarter was impacted by a decrease in real estate revenue
of $8.7 million primarily resulting
from prior year bankruptcies and related store closings, an
increase in credit losses for challenged tenants and reduced
expense recoveries resulting from temporary rent
restructuring.
- Snow removal costs increased $1.2
million from the prior year quarter as a result of several
snowstorms impacting the northeastern states.
- Cash collections continued to improve, increasing to 119% of
billings for the first quarter of 2021 and exceeded 140% of monthly
billings during April as collection of deferred rents continued to
accelerate.
- As of March 31, 2021, we
collected 81% of billed first quarter 2021 rents, an increase from
receipts of 73% and 61% of billed rents as of the end of each of
the fourth and third quarters of 2020, respectively.
- The Company's accounts receivable balance decreased
significantly in the first quarter of 2021, down to $40.4 million as of March
31, 2021 from $54.5 million as
of December 31, 2020.
- As a result of strong collections, we had cash inflow from
operating activities of $16.2 million
for the three months ended March 31,
2021.
- Core Mall total occupancy was 89.2%. Core Mall non-anchor
occupancy was 87.0%.
- Core Mall non-anchor leased space, at 88.2%, exceeds occupied
space by 120 basis points when factoring in executed new leases
slated for future occupancy.
- Based on a comparable set of tenants who reported sales in
March of 2019 and 2021, sales grew at 14 of the Company's managed
properties in March and more than half of the portfolio for the
quarter.
- Average renewal spreads for the quarter ended March 31, 2021 were 2.2% in the wholly-owned
portfolio for spaces less than 10,000 square feet.
Leasing and Redevelopment
- 390,000 square feet of leases are signed for future openings,
which is expected to contribute annual gross rent of $8.3 million.
- Leasing momentum continues to build with transactions executed
for nearly 600,000 square feet of occupancy thus far this
year.
- 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 JCPenney at
Magnolia Mall in Florence, SC. The
family-focused destination is expected to open in Q3 2021.
- A transaction has been executed with Cooper Hospital 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.
Primary Factors Affecting Financial Results for the Three
Months Ended March 31, 2021 and
2020
- Net loss attributable to PREIT common shareholders was
$49.6 million (which takes into
consideration the accrual of preferred dividends that accumulated
during the quarter but have not been paid), or $0.64 per basic and diluted share for the three
months ended March 31, 2021, compared
to net loss attributable to PREIT common shareholders of
$19.9 million, or $0.26 per basic and diluted share for the three
months ended March 31, 2020.
- Same Store NOI, including lease terminations, decreased by
$10.1 million, or 21.1%. The decrease
is primarily due to reduced revenues from bankrupt tenants, an
increase in credit losses and a reduction in expense recoveries
resulting from temporary rent restructuring transactions, partially
offset by new store openings, including contributions from
replacement anchors.
- Non-Same Store NOI decreased by $1.6
million, primarily due to lost revenues from bankrupt
tenants, an increase in credit losses and increased operating
expenses. Other decreases in NOI from Non-Same Store properties is
due to the transfer of property at Valley View Mall during the
third quarter of 2020.
- FFO for the three months ended March 31,
2021 was $(0.14) per diluted
share and OP Unit compared to $0.14
per diluted share and OP Unit for the three months ended
March 31, 2020. Adjustments to FFO in
the first quarter of 2021 were related to $(0.02) per share from gain on hedge
ineffectiveness, offset by reorganization expenses and provision
for employee separation expense.
All NOI and FFO amounts referenced as primary factors affecting
financial results above include our share of unconsolidated
properties' revenues and expenses. Additional information regarding
changes in operating results for the three months ended
March 31, 2021 and 2020 is included
on page 15.
Liquidity and Financing Activities
As of
March 31, 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 $103.6 million.
The Company refinanced the mortgage on Woodland Mall, extending
the maturity to December 2021 with an
option to extend for one year to December
2022.
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 May 6, 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
9844099, at least fifteen minutes before the scheduled start time
as callers may experience delays. Investors can also access
the call in a "listen only" mode via the internet at the Company's
website, preit.com. Please allow extra time prior to the call
to visit the site and download the necessary software to listen to
the Internet broadcast. Financial and statistical information
expected to be discussed on the call will also be available on the
Company's website.
For interested individuals unable to join the conference call,
the online archive of the webcast will also be available for one
year following the call.
About PREIT
PREIT (NYSE:PEI) is a publicly
traded real estate investment trust (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. Additional
information is available at 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 ("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 months ended March
31, 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, 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, provision for
employee separation expenses, project costs and other expenses,
interest expense, reorganization expenses, equity in loss/income of
partnerships, gain/loss on sale of real estate and gain/loss on
sales of non-operating real estate.
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.
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 (loss) 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 rata share of the revenue and expenses of our
unconsolidated partnerships, we do not have a direct legal claim to
the assets, liabilities, revenues or expenses of the unconsolidated
partnerships beyond our rights as an equity owner in the event of
any liquidation of such entity. Our percentage ownership is
not necessarily indicative of the legal and economic implications
of our ownership interest. Accordingly, NOI and FFO results
based on our share of the results of unconsolidated partnerships do
not represent cash generated from our investments in these
partnerships.
Core Properties
Core Properties include all operating retail properties except
for Exton Square Mall and Valley View Mall. 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," and similar expressions.
Forward-looking statements relate to expectations, beliefs,
projections, future plans, strategies, anticipated events, trends
and other matters that are not historical facts. These
forward-looking statements reflect our current views about future
events, achievements or results and are subject to risks,
uncertainties and changes in circumstances that might cause future
events, achievements or results to differ materially from those
expressed or implied by the forward-looking statements. In
particular, our business might be materially and adversely affected
by the following:
- the effectiveness of our financial restructuring and any
additional strategies that we may employ to address our liquidity
and capital resources in the future;
- our ability to achieve forecasted revenue and pro forma
leverage ratio and generate free cash flow to further reduce
indebtedness;
- the COVID-19 global pandemic and the public health and
governmental 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;
- 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 the sections entitled "Item 1A. Risk Factors" in our Annual
Report on Form 10-K for the year ended December 31, 2020 and any subsequent reports we
may file with the SEC. 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 **
Pennsylvania Real Estate Investment Trust
Selected Financial Data
|
|
Three Months
Ended
March
31,
|
|
(in thousands of
dollars)
|
|
2021
|
|
|
2020
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
Real estate
revenue:
|
|
|
|
|
|
|
|
|
Lease
revenue
|
|
$
|
59,908
|
|
|
$
|
67,721
|
|
Expense
reimbursements
|
|
|
3,899
|
|
|
|
4,305
|
|
Other real estate
revenue
|
|
|
1,471
|
|
|
|
1,924
|
|
Total real estate
revenue
|
|
|
65,278
|
|
|
|
73,950
|
|
Other
income
|
|
|
125
|
|
|
|
293
|
|
Total
revenue
|
|
|
65,403
|
|
|
|
74,243
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Property operating
expenses:
|
|
|
|
|
|
|
|
|
CAM and real estate
taxes
|
|
|
(27,831)
|
|
|
|
(27,517)
|
|
Utilities
|
|
|
(2,964)
|
|
|
|
(2,922)
|
|
Other property
operating expenses
|
|
|
(2,364)
|
|
|
|
(2,098)
|
|
Total property
operating expenses
|
|
|
(33,159)
|
|
|
|
(32,537)
|
|
Depreciation and
amortization
|
|
|
(29,839)
|
|
|
|
(30,269)
|
|
General and
administrative expenses
|
|
|
(11,831)
|
|
|
|
(10,695)
|
|
Provision for
employee separation expenses
|
|
|
(92)
|
|
|
|
(73)
|
|
Project costs and
other expenses
|
|
|
(101)
|
|
|
|
(95)
|
|
Total operating
expenses
|
|
|
(75,022)
|
|
|
|
(73,669)
|
|
Interest expense,
net
|
|
|
(30,731)
|
|
|
|
(16,858)
|
|
Reorganization
expenses
|
|
|
(197)
|
|
|
|
-
|
|
Total
expenses
|
|
|
(105,950)
|
|
|
|
(90,527)
|
|
Loss before equity in
(loss) income of partnerships, gain on sales of real estate,
net, and loss on sales of interests in non operating real
estate
|
|
|
(40,547)
|
|
|
|
(16,284)
|
|
Equity in (loss)
income of partnerships
|
|
|
(3,433)
|
|
|
|
819
|
|
Gain on sales of real
estate, net
|
|
|
-
|
|
|
|
1,962
|
|
Loss on sales of
interests in non operating real estate
|
|
|
-
|
|
|
|
(46)
|
|
Net
loss
|
|
|
(43,980)
|
|
|
|
(13,549)
|
|
Less: net loss
attributable to noncontrolling interest
|
|
|
1,234
|
|
|
|
516
|
|
Net loss
attributable to PREIT
|
|
|
(42,746)
|
|
|
|
(13,033)
|
|
Less: preferred share
dividends
|
|
|
(6,844)
|
|
|
|
(6,844)
|
|
Net loss
attributable to PREIT common shareholders
|
|
$
|
(49,590)
|
|
|
$
|
(19,877)
|
|
|
|
Three Months
Ended
March
31,
|
|
(in thousands,
except per share amounts)
|
|
2021
|
|
|
2020
|
|
Net loss
|
|
$
|
(43,980)
|
|
|
$
|
(13,549)
|
|
Noncontrolling
interest
|
|
|
1,234
|
|
|
|
516
|
|
Preferred share
dividends
|
|
|
(6,844)
|
|
|
|
(6,844)
|
|
Dividends on unvested
restricted shares
|
|
|
—
|
|
|
|
(350)
|
|
Net loss used to
calculate loss per share—basic and diluted
|
|
$
|
(49,590)
|
|
|
$
|
(20,227)
|
|
Basic and diluted
loss per share:
|
|
$
|
(0.64)
|
|
|
$
|
(0.26)
|
|
|
|
|
|
|
|
|
|
|
(in thousands of
shares)
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding—basic
|
|
|
77,647
|
|
|
|
76,774
|
|
Effect of common
share equivalents(1)
|
|
|
—
|
|
|
|
—
|
|
Weighted average
shares outstanding—diluted
|
|
|
77,647
|
|
|
|
76,774
|
|
|
|
(1)
|
The Company had net
losses in all periods presented. 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.
|
|
|
Three Months
Ended
March
31,
|
|
(in thousands of
dollars)
|
|
2021
|
|
|
2020
|
|
Comprehensive
loss:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(43,980)
|
|
|
$
|
(13,549)
|
|
Unrealized gain (loss)
on derivatives
|
|
|
2,601
|
|
|
|
(19,751)
|
|
Amortization of
settled swaps
|
|
|
3
|
|
|
|
5
|
|
Total comprehensive
loss
|
|
|
(41,376)
|
|
|
|
(33,295)
|
|
Less: comprehensive
loss attributable to noncontrolling interest
|
|
|
1,170
|
|
|
|
1,021
|
|
Comprehensive loss
attributable to PREIT
|
|
$
|
(40,206)
|
|
|
$
|
(32,274)
|
|
The following table presents a reconciliation of net loss
determined in accordance with GAAP to (i) FFO attributable to
common shareholders and OP Unit holders, (ii) FFO, as adjusted,
attributable to common shareholders and OP Unit holders, (iii) FFO
attributable to common shareholders and OP Unit holders per diluted
share and OP Unit, (iv) and FFO, as adjusted, attributable to
common shareholders and OP Unit holders per diluted share and OP
Unit for the three months ended March 31,
2021 and 2020:
|
|
Three Months Ended
March 31,
|
|
(in thousands,
except per share amounts)
|
|
2021
|
|
|
2020
|
|
Net
loss
|
|
$
|
(43,980)
|
|
|
$
|
(13,549)
|
|
Depreciation and
amortization on real estate:
|
|
|
|
|
|
|
|
|
Consolidated
properties
|
|
|
29,491
|
|
|
|
29,944
|
|
PREIT's share of
equity method investments
|
|
|
3,187
|
|
|
|
3,610
|
|
Gain on sales of real
estate, net
|
|
|
-
|
|
|
|
(1,962)
|
|
Dividend on preferred
shares
|
|
|
-
|
|
|
|
(6,844)
|
|
Funds from operations
attributable to common shareholders and OP Unit holders
|
|
|
(11,302)
|
|
|
|
11,199
|
|
Provision for employee
separation expenses
|
|
|
92
|
|
|
|
73
|
|
Gain on hedge
ineffectiveness
|
|
|
(1,303)
|
|
|
|
-
|
|
Reorganization
expenses
|
|
|
197
|
|
|
|
-
|
|
Funds from
operations, as adjusted, attributable to common shareholders and OP
Unit
holders
|
|
$
|
(12,316)
|
|
|
$
|
11,272
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
attributable to common shareholders and OP Unit holders per
diluted share and OP Unit
|
|
$
|
(0.14)
|
|
|
$
|
0.14
|
|
Funds from
operations, as adjusted, attributable to common shareholders and OP
Unit
holders per diluted share and OP Unit
|
|
$
|
(0.15)
|
|
|
$
|
0.14
|
|
Weighted average
number of shares outstanding
|
|
|
77,647
|
|
|
|
76,774
|
|
Weighted average
effect of full conversion of OP Units
|
|
|
1,976
|
|
|
|
2,023
|
|
Effect of common
share equivalents
|
|
691
|
|
|
520
|
|
Total weighted
average shares outstanding, including OP Units
|
|
|
80,314
|
|
|
|
79,317
|
|
NOI for the three months ended March 31,
2021 and 2020:
|
|
Same
Store
|
|
|
Change
|
|
|
Non Same
Store
|
|
|
Total
|
|
(in thousands of
dollars)
|
|
2021
|
|
|
2020
|
|
|
$
|
|
|
%
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
NOI from consolidated
properties
|
|
$
|
32,707
|
|
|
$
|
40,430
|
|
|
$
|
(7,723)
|
|
|
|
(19.1)
|
%
|
|
$
|
(588)
|
|
|
$
|
983
|
|
|
$
|
32,119
|
|
|
$
|
41,413
|
|
NOI attributable to
equity method investments, at ownership share
|
|
|
5,060
|
|
|
|
7,435
|
|
|
|
(2,375)
|
|
|
|
(31.9)
|
%
|
|
|
(18)
|
|
|
|
9
|
|
|
|
5,042
|
|
|
|
7,444
|
|
Total
NOI
|
|
|
37,767
|
|
|
|
47,865
|
|
|
|
(10,098)
|
|
|
|
(21.1)
|
%
|
|
|
(606)
|
|
|
|
992
|
|
|
|
37,161
|
|
|
|
48,857
|
|
Less: lease
termination revenue
|
|
|
36
|
|
|
|
9
|
|
|
|
27
|
|
|
|
300.0
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
36
|
|
|
|
9
|
|
Total NOI excluding
lease termination revenue
|
|
$
|
37,731
|
|
|
$
|
47,856
|
|
|
$
|
(10,125)
|
|
|
|
(21.2)
|
%
|
|
$
|
(606)
|
|
|
$
|
992
|
|
|
$
|
37,125
|
|
|
$
|
48,848
|
|
The table below reconciles net loss to NOI of our consolidated
properties for the three months ended March
31, 2021 and 2020.
|
|
Three Months Ended
March 31,
|
|
(in thousands of
dollars)
|
|
2021
|
|
|
2020
|
|
Net loss
|
|
$
|
(43,980)
|
|
|
$
|
(13,549)
|
|
Other
income
|
|
|
(125)
|
|
|
|
(293)
|
|
Depreciation and
amortization
|
|
|
29,839
|
|
|
|
30,269
|
|
General and
administrative expenses
|
|
|
11,831
|
|
|
|
10,695
|
|
Provision for
employee separation expense
|
|
|
92
|
|
|
|
73
|
|
Project costs and
other expenses
|
|
|
101
|
|
|
|
95
|
|
Interest expense,
net
|
|
|
30,731
|
|
|
|
16,858
|
|
Reorganization
expenses
|
|
|
197
|
|
|
|
-
|
|
Equity in loss
(income) of partnerships
|
|
|
3,433
|
|
|
|
(819)
|
|
Gain on sales of
interests in real estate, net
|
|
|
-
|
|
|
|
(1,962)
|
|
Loss on sales of
interest in non operating real estate
|
|
|
-
|
|
|
|
46
|
|
NOI from consolidated
properties
|
|
|
32,119
|
|
|
|
41,413
|
|
Less: Non Same Store
NOI of consolidated properties
|
|
|
(588)
|
|
|
|
983
|
|
Same Store NOI from
consolidated properties
|
|
|
32,707
|
|
|
|
40,430
|
|
Less: Same Store
lease termination revenue
|
|
|
36
|
|
|
|
9
|
|
Same Store NOI
excluding lease termination revenue
|
|
$
|
32,671
|
|
|
$
|
40,421
|
|
The table below reconciles equity in (loss) income of
partnerships to NOI of equity method investments at ownership share
for the three months ended March 31,
2021 and 2020:
|
|
Three Months Ended
March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Equity in (loss)
income of partnerships
|
|
$
|
(3,433)
|
|
|
$
|
819
|
|
Other
income
|
|
|
-
|
|
|
|
(14)
|
|
Depreciation and
amortization
|
|
|
3,187
|
|
|
|
3,610
|
|
Interest and other
expenses
|
|
|
5,288
|
|
|
|
3,029
|
|
Net operating
income from equity method investments at ownership
share
|
|
|
5,042
|
|
|
|
7,444
|
|
Less: Non Same Store
NOI from equity method investments at ownership
share
|
|
|
(18)
|
|
|
|
9
|
|
Same Store NOI of
equity method investments at ownership share
|
|
|
5,060
|
|
|
|
7,435
|
|
Less: Same Store
lease termination revenue
|
|
|
-
|
|
|
|
-
|
|
Same Store NOI
from equity method investments excluding lease
termination revenue at ownership share
|
|
$
|
5,060
|
|
|
$
|
7,435
|
|
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
(in thousands,
except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
INVESTMENTS IN REAL
ESTATE, at cost:
|
|
|
|
|
|
|
|
|
Operating
properties
|
|
$
|
3,173,436
|
|
|
$
|
3,168,536
|
|
Construction in
progress
|
|
|
44,201
|
|
|
|
46,285
|
|
Land held for
development
|
|
|
5,516
|
|
|
|
5,516
|
|
Total investments in
real estate
|
|
|
3,223,153
|
|
|
|
3,220,337
|
|
Accumulated
depreciation
|
|
|
(1,336,228)
|
|
|
|
(1,308,427)
|
|
Net investments in
real estate
|
|
|
1,886,925
|
|
|
|
1,911,910
|
|
INVESTMENTS IN
PARTNERSHIPS, at equity:
|
|
|
21,597
|
|
|
|
27,066
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
44,637
|
|
|
|
43,309
|
|
Tenant and other
receivables, net
|
|
|
40,413
|
|
|
|
54,532
|
|
Intangible assets,
net
|
|
|
11,037
|
|
|
|
11,392
|
|
Deferred costs and
other assets, net
|
|
|
125,061
|
|
|
|
127,593
|
|
Assets held for
sale
|
|
|
1,384
|
|
|
|
1,384
|
|
Total
assets
|
|
$
|
2,131,054
|
|
|
$
|
2,177,186
|
|
LIABILITIES:
|
|
|
|
|
|
|
|
|
Mortgage loans
payable, net
|
|
$
|
874,926
|
|
|
$
|
884,503
|
|
Term Loans,
net
|
|
|
921,767
|
|
|
|
908,473
|
|
Revolving
Facility
|
|
|
54,830
|
|
|
|
54,830
|
|
Tenants' deposits
and deferred rent
|
|
|
10,639
|
|
|
|
8,899
|
|
Distributions in
excess of partnership investments
|
|
|
75,047
|
|
|
|
76,586
|
|
Fair value of
derivative liabilities
|
|
|
19,388
|
|
|
|
23,292
|
|
Accrued expenses and
other liabilities
|
|
|
88,219
|
|
|
|
93,663
|
|
Total
liabilities
|
|
|
2,044,816
|
|
|
|
2,050,246
|
|
COMMITMENTS AND
CONTINGENCIES (Note 8)
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
|
Series B Preferred
Shares, $.01 par value per share; 25,000 shares authorized;
3,450 shares issued and outstanding; liquidation preference of
$91,020 and
$89,430 at March 31, 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
$181,815 and
$178,710 at March 31, 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
$131,446 and
$129,297 at March 31, 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 March 31, 2021
and
December 31, 2020, respectively
|
|
|
79,260
|
|
|
|
79,537
|
|
Capital contributed in
excess of par
|
|
|
1,772,728
|
|
|
|
1,771,777
|
|
Accumulated other
comprehensive loss
|
|
|
(18,080)
|
|
|
|
(20,620)
|
|
Distributions in
excess of net income
|
|
|
(1,742,384)
|
|
|
|
(1,699,638)
|
|
Total
equity—Pennsylvania Real Estate Investment Trust
|
|
|
91,678
|
|
|
|
131,210
|
|
Noncontrolling
interest
|
|
|
(5,440)
|
|
|
|
(4,270)
|
|
Total
equity
|
|
|
86,238
|
|
|
|
126,940
|
|
Total liabilities and
equity
|
|
$
|
2,131,054
|
|
|
$
|
2,177,186
|
|
Changes in Funds from Operations for the three months ended
March 31, 2021 as compared to the
three months ended March 31, 2020
(all per share amounts on a diluted basis unless otherwise noted;
per share amounts rounded to the nearest half penny; amounts may
not total due to rounding)
(in
thousands, except per share amounts)
|
|
Three Months
Ended
March 31
|
|
|
Per
Diluted
Share and
OP
Unit
|
|
Funds from
Operations, as adjusted March 31, 2020
|
|
$
|
11,272
|
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
Changes - Q1 2020
to Q1 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution from
anchor replacements and new box tenants
|
|
|
654
|
|
|
|
0.01
|
|
Impact from
bankruptcies
|
|
|
(16)
|
|
|
|
-
|
|
Other leasing
activity, including base rent and net CAM and real estate tax
recoveries
|
|
|
(8,448)
|
|
|
|
(0.11)
|
|
Lease termination
revenue
|
|
|
27
|
|
|
|
-
|
|
Credit
losses
|
|
|
694
|
|
|
|
0.01
|
|
Other
|
|
|
(634)
|
|
|
|
(0.01)
|
|
Same Store NOI from
unconsolidated properties
|
|
|
(2,375)
|
|
|
|
(0.03)
|
|
Same Store
NOI
|
|
|
(10,098)
|
|
|
|
(0.13)
|
|
Non Same Store
NOI
|
|
|
(1,598)
|
|
|
|
(0.02)
|
|
Dilutive effect of
asset sales
|
|
|
281
|
|
|
|
-
|
|
General and
administrative expenses
|
|
|
(1,136)
|
|
|
|
(0.02)
|
|
Capitalization of
leasing costs
|
|
|
(163)
|
|
|
|
-
|
|
Other
|
|
|
5,276
|
|
|
|
0.07
|
|
Interest expense,
net
|
|
|
(16,150)
|
|
|
|
(0.21)
|
|
Increase in weighted
average shares
|
|
|
-
|
|
|
|
0.01
|
|
Funds from
Operations, as adjusted March 31, 2021
|
|
|
(12,316)
|
|
|
|
(0.15)
|
|
Reorganization
expenses
|
|
|
(197)
|
|
|
|
-
|
|
Provision for
employee separation expense
|
|
|
(92)
|
|
|
|
-
|
|
Gain on hedge
ineffectiveness
|
|
|
1,303
|
|
|
|
0.02
|
|
Funds from
Operations March 31, 2021
|
|
$
|
(11,302)
|
|
|
$
|
(0.14)
|
|
CONTACT: AT THE COMPANY
Mario Ventresca
EVP & CFO
(215) 875-0703
Heather Crowell
EVP, Strategy and Communications
(215) 454-1241
heather.crowell@preit.com
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SOURCE PREIT