PREIT Reports Third Quarter 2013 Results and Increases 2013 Guidance

28 Oct, 2013, 16:30 ET from PREIT

PHILADELPHIA, Oct. 28, 2013 /PRNewswire/ -- Pennsylvania Real Estate Investment Trust (NYSE: PEI) today reported results for the quarter and nine months ended September 30, 2013. (Logo: http://photos.prnewswire.com/prnh/20130905/MM75091LOGO )

  • Same Store NOI improved by 2.1% for the quarter and 2.8% year to date
    • Same Store NOI excluding lease termination revenue improved by 2.0% for the quarter and 3.4% year to date
  • FFO, as adjusted per share increased 4.7% for the quarter and 7.3% year to date
  • Total Portfolio Occupancy increased to 93.5%, an increase of 60 basis points over the prior year
    • Non-Anchor Occupancy exceeded our goal of 90%, standing at 90.6%, an increase of 150 basis points
    • Same Store mall occupancy increased to 93.4%, an increase of 50 basis points
  • Renewal spreads for leases under 10,000 square feet were 6.5% for the quarter and 5.5% year to date
  • Asset disposition program progressed with two power centers sold and two malls under contract
  • Leverage ratio under our 2013 Revolving Facility (Total Liabilities  to Gross Asset Value) was reduced to 48.7%
  • Average gross rent at Same Store mall properties increased 2.5% driven by a 4.4% increase at our Premier malls

"Following the strategic objectives and goals we laid out at our 2012 investor day nearly one year ago, we have made demonstrable progress resulting in a stronger balance sheet, improved operating metrics and a higher quality portfolio," said Joseph F. Coradino, Chief Executive Officer.  "We remain focused on these objectives while concurrently looking to grow our platform by making strategic investments to acquire quality properties and improve existing assets."

The following tables set forth information regarding Funds From Operations ("FFO") and the adjustments to FFO for the quarter and nine months ended September 30, 2013:

Quarter Ended September 30,

Nine Months Ended September 30,

(In millions, except per share amounts)

2013

2012

2013

2012

FFO

$ 31.2

$ 20.1

$ 79.4

$  65.9

Provision for employee separation expense

--

5.0

2.3

5.8

Accelerated amortization of deferred financing costs

0.1

--

1.1

--

Loss on hedge ineffectiveness

0.7

--

3.4

--

FFO, as adjusted

$   32.0

$   25.1

$ 86.2

$ 71.7

Quarter Ended September 30,

Nine Months Ended September 30,

Per Diluted Share and OP Unit

2013

2012

2013

2012

FFO

$    0.44

$    0.34

$  1.21

$  1.13

FFO, as adjusted

$    0.45

$    0.43

$ 1.32

$1.23

The following tables set forth information regarding Net Operating Income ("NOI") and Same Store NOI for the quarter and nine months ended September 30, 2013:

Quarter Ended September 30,

Nine Months Ended September 30,

(In millions, except per share amounts)

2013

2012

2013

2012

NOI

$67.6

$68.1

$204.9

$204.9

NOI from discontinued operations

(1.0)

(4.0)

(4.1)

(11.5)

NOI from acquisitions and other

(1.3)

(0.1)

(2.1)

(0.2)

Same Store NOI

$65.3

$64.0

$198.7

$193.2

Lease termination revenue

(0.3)

(0.3)

(0.6)

(1.7)

Same Store NOI excluding lease termination revenue

$65.0

$63.7

$198.1

$191.5

The following tables set forth information regarding net income (loss) and net income (loss) per diluted share for the quarter and nine months ended September 30, 2013:

Quarter Ended September 30,

Nine Months Ended September 30,

(In millions, except per share amounts)

2013

2012

2013

2012

Net income (loss)

$ 12.6

($12.9)

$29.4

($35.7)

Net income (loss) per diluted share

$0.12

($0.27)

$0.26

($.70)

A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP measure are located at the end of this press release.

Primary Factors Affecting Financial Results for the Quarter Ended September 30, 2013:

  • Same Store NOI increased $1.3 million
  • NOI increased $1.1 million as a result of the acquisition of the 907 Market Street property in April 2013
  • NOI decreased $3.0 million as a result of the sale of five properties
  • Interest expense decreased $8.0 million from lower overall debt balances and lower average interest rates
  • General and administrative expenses decreased $0.6 million
  • Dividends on preferred shares increased $1.6 million resulting from the Series B Preferred Shares issued in October 2012
  • Employee separation expenses decreased by $5.0 million
  • Depreciation and amortization increased $4.1 million
  • Gains on sales of discontinued operations of $45.1 million
  • Impairment of assets of $30.0 million related to Chambersburg and North Hanover Malls

Primary Factors Affecting Financial Results for the Nine Months Ended September 30, 2013:

  • Same Store NOI increased $5.4 million
  • NOI increased $2.1 million from the 907 Market Street acquisition
  • NOI decreased $7.4 million as a result of the sale of five properties
  • Interest expense decreased $18.9 million from lower overall debt balances and lower average interest rates
  • General and administrative expenses decreased $2.2 million
  • Dividends on preferred shares increased $7.7 million resulting from the Series A Preferred Shares issued in April 2012 and the Series B Preferred Shares issued in October 2012
  • Employee separation expenses decreased $3.5 million
  • Net loss on hedge ineffectiveness of $3.4 million
  • Accelerated deferred financing costs of $1.1 million
  • Depreciation and amortization increased $10.1 million
  • Gains on sales of discontinued operations of $78.4 million
  • Impairment of assets of $30.0 million related to Chambersburg and North Hanover Malls

Financing Activities

In September 2013, the Company repaid a $65.0 million mortgage loan on Wyoming Valley Mall in Wilkes-Barre, Pennsylvania and in October 2013, the Company repaid a $66.9 million mortgage loan on Exton Square Mall in Exton, Pennsylvania.  Both properties are currently unencumbered.

In September 2013, the Company extended the mortgage loan on Logan Valley Mall in Altoona, Pennsylvania for one year.  In connection with the extension, the Company paid down the loan by $12.0 million.

Asset Dispositions

During the quarter, in two separate transactions, the Company sold Christiana Center in Newark, Delaware and Commons at Magnolia in Florence, South Carolina for combined sales proceeds of $87.3 million, a blended capitalization rate of 6.8% and gains on sales of approximately $45.1 million.

North Hanover Mall in Hanover, Pennsylvania and Chambersburg Mall in Chambersburg, Pennsylvania are under contract for sale subject to due diligence and customary closing conditions. The contract for the sale of South Mall has been terminated.

Retail Operations

The following tables set forth information regarding sales per square foot and occupancy in the Company's portfolio, including properties owned by partnerships in which the Company owns a 50% interest:

Rolling Twelve Months Ended:

September 30, 2013

September 30, 2012

Portfolio Sales per square foot (1)

$ 381

$ 379

(1)    Based on sales reported by tenants leasing 10,000 square feet or less of non-anchor space for at least 24 months.

Occupancy as of:

September 30, 2013

September 30, 2012

Same Store Malls:

   Total including anchors

93.4%

92.9%

   Total excluding anchors

90.3%

89.3%

Portfolio Total Occupancy:

   Total including anchors

93.5%

92.9%

   Total excluding anchors

90.6%

89.1%

2013 Outlook

The Company is revising its 2013 guidance as follows:

Estimates Per Diluted Share

Lower End

Upper End

FFO, as adjusted

$ 1.89

$ 1.93

Provision for employee separation expense

(0.03)

(0.03)

Deferred financing costs and hedge ineffectiveness, net

(0.07)

(0.07)

FFO

$ 1.79

$ 1.83

Gains on sales

1.16

1.16

Impairment charges

(0.45)

(0.45)

Depreciation and amortization (includes the Company's proportionate share of unconsolidated properties), net of other adjustments

(2.21)

(2.20)

Net income attributable to PREIT common shareholders

$ 0.29

$ 0.34

The Company's guidance does not include the effect of any additional property dispositions or acquisitions.

Conference Call Information

Management has scheduled a conference call for 11:00 a.m. Eastern Daylight Time on Tuesday, October 29, 2013, to review the Company's third quarter results and future outlook.  To listen to the call, please dial (866) 524-3160 (domestic) or (412) 317-6760 (international), at least five minutes before the scheduled start time, and provide conference ID number 10033828.  Investors can also access the call in a "listen only" mode via the Internet at the Company website, www.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, a replay of the call will be available through November 12, 2013 at (877) 344-7529 (domestic) or (412) 317-0088 (international), (Replay reservation code: 10033828).  The online archive of the webcast will also be available for 14 days following the call.

About Pennsylvania Real Estate Investment Trust

Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls. Currently, the Company's portfolio of 44 properties comprises 36 shopping malls, five community and power centers, and three development properties. The Company's properties are located in 12 states in the eastern half of the United States, primarily in the Mid-Atlantic region. The operating retail properties have approximately 30.7 million total square feet of space. PREIT, headquartered in Philadelphia, Pennsylvania, is publicly traded on the NYSE under the symbol PEI. Information about the Company can be found 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 (or losses) from sales of property, 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, 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 three and nine months September 30, 2013 and 2012 to show the effect of the provision for employee separation expense, accelerated amortization of deferred financing costs and gain and loss on hedge ineffectiveness, which had a significant effect on our results of operations, but are not, in our opinion, indicative of our 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 its operating performance, such as provision for employee separation expense, accelerated amortization of deferred financing costs and gain on hedge ineffectiveness.

Net Operating Income ("NOI")

NOI (a non-GAAP measure) is derived from real estate revenue (determined in accordance with generally accepted accounting principles, or GAAP, including lease termination revenue) minus operating expenses (determined in accordance with GAAP), plus our share of revenue and operating expenses of our partnership investments, and includes real estate revenue and operating expenses from properties included in discontinued operations, if any. It 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 interest and other income, general and administrative expenses, provision for employee separation expense, interest expense, depreciation and amortization, gains on sales of interests in real estate, gains on sales of non-operating real estate, gains on sales of discontinued operations, gain on extinguishment of debt, impairment losses, project costs and other expenses.

Same Store NOI

Same Store NOI is calculated using retail properties owned for the full periods presented and exclude properties acquired or disposed of or reclassified as held for sale during the periods presented.

Forward Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 uncertainties affecting real estate businesses generally as well as the following, among other factors: our substantial debt, stated value of preferred shares and our high leverage ratio; constraining leverage, interest and tangible net worth covenants under our 2013 Revolving Facility; potential losses on impairment of certain long-lived assets, such as real estate, or of intangible assets, such as goodwill; potential losses on impairment of assets that we might be required to record in connection with any dispositions of assets; recent changes to our corporate management team and any resulting modifications to our business strategies; our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; our ability to raise capital, including through the issuance of equity or equity-related securities if market conditions are favorable, through joint ventures or other partnerships, through sales of properties or interests in properties, or through other actions; our short- and long-term liquidity position; current economic conditions and their effect on employment, consumer confidence and spending and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions and on our cash flows, and the value and potential impairment of our properties;  general economic, financial and political conditions, including credit market conditions, changes in interest rates or unemployment; changes in the retail industry, including consolidation and store closings, particularly among anchor tenants; the effects of online shopping and other uses of technology on our retail tenants;  our ability to maintain and increase property occupancy, sales and rental rates, in light of the relatively high number of leases that have expired or are expiring in the next two years; increases in operating costs that cannot be passed on to tenants; risks relating to development and redevelopment activities; concentration of our properties in the Mid-Atlantic region; changes in local market conditions, such as the supply of or demand for retail space, or other competitive factors; potential dilution from any capital raising transactions; possible environmental liabilities; our ability to obtain insurance at a reasonable cost; and existence of complex regulations, including those relating to our status as a REIT, and the adverse consequences if we were to fail to qualify as a REIT.  Additional factors that might cause future events, achievements or results to differ materially from those expressed or implied by our forward-looking statements include those discussed in our Annual Report on Form 10-K and in our Quarterly Report on Form 10-Q for the three months ended March 31, 2013 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     **

 

Pennsylvania Real Estate Investment Trust Selected Financial Data

STATEMENTS OF OPERATIONS

Quarter Ended

Nine Months Ended

September 30, 2013

September 30, 2012

September 30, 2013

September 30, 2012

(In thousands, except per share amounts)

REVENUE:

Real estate revenue:

Base rent

$

70,646

$

67,951

$

209,990

$

201,340

Expense reimbursements

33,517

30,959

95,704

91,280

Percentage rent

593

694

2,169

2,099

Lease termination revenue

336

279

579

1,691

Other real estate revenue

3,186

2,965

8,953

8,723

  Real estate revenue

108,278

102,848

317,395

305,133

Other income

3,208

2,608

5,491

4,254

  Total revenue

111,486

105,456

322,886

309,387

EXPENSES:

Property operating expenses:

  CAM and real estate tax

(36,938)

(33,755)

(107,426)

(100,557)

  Utilities

(6,954)

(6,637)

(17,213)

(17,525)

  Other

(4,806)

(5,228)

(12,824)

(13,815)

    Total operating expenses

(48,698)

(45,620)

(137,463)

(131,897)

Depreciation and amortization

(36,053)

(31,918)

(105,332)

(95,232)

Other expenses:

  General and administrative expenses

(8,116)

(8,694)

(26,578)

(28,818)

  Impairment of assets

(29,966)

(29,966)

  Provision for employee separation expenses

(4,958)

(2,314)

(5,754)

  Project costs and other expenses

(462)

(380)

(862)

(777)

     Total other expenses

(38,544)

(14,032)

(59,720)

(35,349)

Interest expense, net

(23,477)

(29,996)

(78,503)

(91,531)

  Total expenses

(146,772)

(121,566)

(381,018)

(354,009)

Loss before equity in income of partnerships and discontinued operations

(35,286)

(16,110)

(58,132)

(44,622)

  Equity in income of partnerships

2,345

2,164

7,081

6,110

Net loss from continuing operations

(32,941)

(13,946)

(51,051)

(38,512)

Discontinued operations:

  Operating results from discontinued operations

428

1,085

2,082

2,834

  Gains on sales of discontinued operations

45,097

78,351

Income from discontinued operations

45,525

1,085

80,433

2,834

Net income (loss)

12,584

(12,861)

29,382

(35,678)

  Less:  net (income) loss attributed to noncontrolling interest

(382)

508

(1,073)

1,440

Net income (loss) attributable to Pennsylvania Real Estate Investment Trust

12,202

(12,353)

28,309

(34,238)

  Less: preferred share dividends

(3,962)

(2,372)

(11,886)

(4,217)

Net income (loss)  attributable to Pennsylvania Real Estate Investment Trust common shareholders

$

8,240

$

(14,725)

$

16,423

$

(38,455)

Basic and diluted net (loss) income per share - Pennsylvania Real Estate Investment Trust (1)

$

0.12

$

(0.27)

$

0.26

$

(0.70)

Weighted average number of shares outstanding for diluted EPS

67,579

55,190

62,330

55,081

(1)For the three and nine month periods ended September 30, 2013 and 2012, respectively, there are net losses from continuing operations, so the effect of common share equivalents is excluded from the calculation of diluted loss per share for these periods.  

 

 

 

Pennsylvania Real Estate Investment Trust Selected Financial Data

OTHER COMPREHENSIVE INCOME (LOSS)

Quarter Ended

Nine Months Ended

September 30, 2013

September 30, 2012

September 30, 2013

September 30, 2012

(In thousands)

Net income (loss)

$

12,584

$

(12,861)

$

29,382

$

(35,678)

Unrealized gain on derivatives

651

3,030

8,747

7,307

Amortization of (gains) losses of settled swaps, net

984

289

4,766

797

Total comprehensive income (loss)

14,219

(9,542)

42,895

(27,574)

Less: Comprehensive (income) loss attributable to noncontrolling interest

(402)

375

(1,523)

1,113

Comprehensive income (loss) attributable to Pennsylvania Real Estate Investment Trust

$

13,817

$

(9,167)

$

41,372

$

(26,461)

 

 

 

Pennsylvania Real Estate Investment Trust Selected Financial Data

Quarter Ended September 30, 2013

Quarter Ended September 30, 2012

RECONCILIATION OF NOI AND

FFO TO NET LOSS

Consolidated

PREIT's Share

unconsolidated

partnerships

Discontinued

operations

Total

Consolidated

PREIT's Share

unconsolidated

partnerships

Discontinued

operations

Total

(In thousands, except per share amounts)

Real estate revenue(1)

$

108,278

$

9,980

$

1,427

$

119,685

$

102,848

$

9,668

$

7,027

$

119,543

Operating expenses

(48,698)

(2,971)

(443)

(52,112)

(45,620)

(2,845)

(2,983)

(51,448)

NET OPERATING INCOME

59,580

7,009

984

67,573

57,228

6,823

4,044

68,095

General and administrative expenses

(8,116)

(8,116)

(8,694)

(8,694)

Provision for employee separation expenses

(4,958)

(4,958)

Other income

3,208

3,208

2,608

2,608

Project costs and other expenses

(462)

(462)

(380)

(1)

(381)

Interest expense, net

(23,477)

(2,773)

(494)

(26,744)

(29,996)

(2,813)

(1,101)

(33,910)

Depreciation on non real estate assets

(253)

(253)

(256)

(256)

Preferred share dividends

(3,962)

(3,962)

(2,372)

(2,372)

FUNDS FROM OPERATIONS

26,518

4,236

490

31,244

13,180

4,009

2,943

20,132

Depreciation on real estate assets

(35,800)

(1,891)

(62)

(37,753)

(31,662)

(1,845)

(1,858)

(35,365)

Equity in income of partnerships

2,345

(2,345)

2,164

(2,164)

Impairment of assets

(29,966)

(29,966)

Operating results from discontinued operations

428

(428)

1,085

(1,085)

Gain on sales of discontinued operations

45,097

45,097

Preferred share dividends

3,962

3,962

2,372

2,372

Net income (loss)

$

12,584

$

$

$

12,584

$

(12,861)

$

$

$

(12,861)

(1)Total includes the non-cash effect of straight-line rent of $316 and $980 for the quarters ended September 30, 2013 and 2012, respectively.

 

Weighted average number of shares outstanding

67,579

55,190

Weighted average effect of full conversion of OP Units

2,136

2,302

Effect of common share equivalents

825

982

Total weighted average shares outstanding, including OP Units

70,540

58,474

FUNDS FROM OPERATIONS

$

31,244

$

20,132

Provision for employee separation expenses

4,958

Accelerated amortization of deferred financing costs

50

Loss on hedge ineffectiveness

727

FUNDS FROM OPERATIONS AS ADJUSTED

$

32,021

$

25,090

FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT

$

0.44

$

0.34

FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT AS ADJUSTED

$

0.45

$

0.43

 

 

 

SAME STORE RECONCILIATION

Quarter Ended September 30,

Same Store

Non-Same Store

Total

2013

2012

2013

2012

2013

2012

Real estate revenue

$

116,135

$

112,032

$

3,550

$

7,511

$

119,685

$

119,543

Operating expenses

(50,819)

(48,058)

(1,293)

(3,390)

(52,112)

(51,448)

NET OPERATING INCOME (NOI)

$

65,316

$

63,974

$

2,257

$

4,121

$

67,573

$

68,095

Less: Lease termination revenue

346

279

60

346

339

NOI - EXCLUDING LEASE TERMINATION REVENUE

$

64,970

$

63,695

$

2,257

$

4,061

$

67,227

$

67,756

 

 

 

Pennsylvania Real Estate Investment Trust Selected Financial Data

Nine Months Ended September 30, 2013

Nine Months Ended September 30, 2012

RECONCILIATION OF NOI AND

FFO TO NET INCOME (LOSS)

Consolidated

PREIT's Share

unconsolidated

partnerships

Discontinued

operations

Total

Consolidated

PREIT's Share

unconsolidated

partnerships

Discontinued

operations

Total

(In thousands, except per share amounts)

Real estate revenue(1)

$

317,395

$

29,683

$

6,221

$

353,299

$

305,133

$

28,506

$

21,048

$

354,687

Operating expenses

(137,463)

(8,768)

(2,170)

(148,401)

(131,897)

(8,409)

(9,521)

(149,827)

NET OPERATING INCOME

179,932

20,915

4,051

204,898

173,236

20,097

11,527

204,860

General and administrative expenses

(26,578)

(26,578)

(28,818)

(28,818)

Provision for employee separation expenses

(2,314)

(2,314)

(5,754)

(5,754)

Other income

5,491

5,491

4,254

4,254

Project costs and other expenses

(862)

(862)

(777)

(1)

(778)

Interest expense, net

(78,503)

(8,305)

(1,753)

(88,561)

(91,531)

(8,449)

(3,031)

(103,011)

Depreciation on non real estate assets

(801)

(801)

(604)

(604)

Preferred share dividends

(11,886)

(11,886)

(4,217)

(4,217)

FUNDS FROM OPERATIONS

64,479

12,610

2,298

79,387

45,789

11,647

8,496

65,932

Depreciation on real estate assets

(104,531)

(5,529)

(216)

(110,276)

(94,628)

(5,537)

(5,662)

(105,827)

Equity in income of partnerships

7,081

(7,081)

6,110

(6,110)

Operating results from discontinued operations

2,082

(2,082)

2,834

(2,834)

Impairment of assets

(29,966)

(29,966)

Gain on sales of discontinued operations

78,351

78,351

Preferred share dividends

11,886

11,886

4,217

4,217

Net income (loss)

$

29,382

$

$

$

29,382

$

(35,678)

$

$

$

(35,678)

(1) Total includes the non-cash effect of straight-line rent of $1,145 and $1,233 for the nine months ended September 30, 2013 and 2012, respectively.

 

Weighted average number of shares outstanding

62,330

55,081

Weighted average effect of full conversion of OP Units

2,215

2,313

Effect of common share equivalents

851

1,017

Total weighted average shares outstanding, including OP Units

65,396

58,411

FUNDS FROM OPERATIONS

$

79,387

$

65,932

Provision for employee separation expenses

2,314

5,754

Accelerated amortization of deferred financing costs

1,076

Loss on hedge ineffectiveness

3,409

FUNDS FROM OPERATIONS AS ADJUSTED

$

86,186

$

71,686

FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT

$

1.21

$

1.13

FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT AS ADJUSTED

$

1.32

$

1.23

 

 

 

SAME STORE RECONCILIATION

Nine Months Ended September 30,

Same Store

Non-Same Store

Total

2013

2012

2013

2012

2013

2012

Real estate revenue

$

342,726

$

332,188

$

10,573

$

22,499

$

353,299

$

354,687

Operating expenses

(144,065)

(138,972)

(4,336)

(10,855)

(148,401)

(149,827)

NET OPERATING INCOME (NOI)

$

198,661

$

193,216

$

6,237

$

11,644

$

204,898

$

204,860

Less: Lease termination revenue

606

1,749

35

75

641

1,824

NOI - EXCLUDING LEASE TERMINATION REVENUE

$

198,055

$

191,467

$

6,202

$

11,569

$

204,257

$

203,036

 

 

 

Pennsylvania Real Estate Investment Trust Selected Financial Data

CONSOLIDATED BALANCE SHEETS

September 30, 2013

December 31, 2012

(Unaudited)

(In thousands)

ASSETS:

INVESTMENTS IN REAL ESTATE, at cost:

  Operating properties

$

3,422,311

$

3,395,681

  Construction in progress

88,390

68,619

  Land held for development

10,450

13,240

    Total investments in real estate

3,521,151

3,477,540

  Accumulated depreciation

(993,735)

(907,928)

  Net investments in real estate

2,527,416

2,569,612

INVESTMENTS IN PARTNERSHIPS, at equity:

15,615

14,855

OTHER ASSETS:

  Cash and cash equivalents

24,893

33,990

  Tenant and other receivables (net of allowance for doubtful accounts of $14,159 and $14,042 at September 30, 2013 and December 31, 2012, respectively)

35,535

38,473

  Intangible assets (net of accumulated amortization of $14,410 and $14,940 at September 30, 2013 and December 31, 2012, respectively)

9,447

8,673

  Deferred costs and other assets, net

100,223

97,399

  Assets held for sale

114,622

    Total assets

2,713,129

2,877,624

LIABILITIES:

Mortgage loans

$

1,538,102

$

1,718,052

Term loans

182,000

Revolving facility

90,000

Tenants deposits and deferred rent

15,411

14,862

Distributions in excess of partnership investments

64,187

64,874

Fair value of derivative liabilities

1,387

9,742

Liabilities on assets held for sale

102,417

Accrued expenses and other liabilities

72,315

72,448

Total liabilities

1,781,402

2,164,395

EQUITY:

931,727

713,229

Total liabilities and equity

$

2,713,129

$

2,877,624

 

CONTACT: AT THE COMPANY Robert McCadden EVP & CFO (215) 875-0735

Heather Crowell VP, Corporate Communications and Investor Relations (215) 875-0735

SOURCE PREIT



RELATED LINKS

http://www.preit.com