PREIT Reports First Quarter 2021 Results
PREIT (NYSE: PEI) reported its Q1 2021 results with a net loss of $49.6 million, or $0.64 per share, compared to a loss of $19.9 million or $0.26 per share in Q1 2020. Funds from Operations (FFO) were $(0.14) per diluted share, down from $0.14 in the previous year. Same Store NOI dropped by 21.2%, attributed to bankruptcies and reduced revenues. However, cash collections improved, reaching 119% of billings, with a notable increase in tenant demand. The company is optimistic about recovery, having signed leases contributing $8.3 million in future gross rents.
- Improved cash collections reached 119% of billings for Q1 2021.
- Leases signed for 390,000 square feet expected to generate $8.3 million in annual gross rent.
- Traffic and sales at retailers rose, indicating a recovery in consumer demand.
- Strong liquidity with a total of $103.6 million available.
- Net loss increased to $49.6 million from $19.9 million year-over-year.
- Same Store NOI decreased by 21.2% due to bankruptcies and credit losses.
- FFO fell to $(0.14) per diluted share from $0.14 in the prior year.
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 exceeded140% 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 of73% and61% 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 was87.0% . - 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 , or21.1% . 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
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
Hotel Parcels: The Company has an executed agreement of sale to convey a land parcel for anticipated hotel development in the amount of
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
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, | (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 | $ | (12,316) | $ | 11,272 | ||||
Funds from operations attributable to common shareholders and OP Unit holders per | $ | (0.14) | $ | 0.14 | ||||
Funds from operations, as adjusted, attributable to common shareholders 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 | (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 | $ | 5,060 | $ | 7,435 | ||||
March 31, 2021 | December 31, | |||||||
(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; | 35 | 35 | ||||||
Series C Preferred Shares, $.01 par value per share; 25,000 shares authorized; | 69 | 69 | ||||||
Series D Preferred Shares, $.01 par value per share; 25,000 shares authorized; | 50 | 50 | ||||||
Shares of beneficial interest, | 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 | 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 | (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
FAQ
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