Pennsylvania Real Estate Investment Trust
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Pennsylvania Real Estate Investment Trust QUARTERLY SUPPLEMENTAL DISCLOSURE December 31, 2005 www.preit.com Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005) Table of Contents Company Information 1 Debt Ratios 21 Timeline/Recent Developments 2 Portfolio Summary--Retail 22 Stock Information 3 Property Acquisitions/Dispositions- Annual Summary 27 Shareholder Information 4 Property Development Summary 28 Market Capitalization and Capital Resources 5 Property Redevelopment Summary 29 Balance Sheet--Proportionate Consolidation Method 6 Top Twenty Tenants Schedule 30 Balance Sheet--Property Type 7 Lease Expiration Schedule 31 Income Statement--Proportionate Consolidation Method- Quarterly Comparison 8 New Lease/Renewal Summary and Analysis 32 Income Statement--Proportionate Consolidation Method- Annual Comparison 9 Capital Expenditures 33 Income Statement--Same Store- Quarterly Comparison 10 Retail Overall- Summary and Occupancy 34 Income Statement--Same Store- Annual Comparison 11 Enclosed Mall- Summary and Occupancy 35 Income Statement--Retail Property Type- Quarterly Comparison 12 Enclosed Mall- Rent Summary 36 Income Statement--Retail Property Type- Annual Comparison 13 Power Center- Summary and Occupancy 37 Earnings per Share 14 Strip Center- Summary and Occupancy 38 Funds From Operations and Funds Available for Distribution 15 RECONCILIATION TO GAAP: Key Ratios 16 Balance Sheet-Reconciliation to GAAP 39 Property Debt Schedule 17 Income Statement-Reconciliation to GAAP- Quarterly 40 Debt Amortization Schedule 19 Income Statement-Reconciliation to GAAP- Annual 41 Debt Analysis 20 Definitions page 42 THIS QUARTERLY SUPPLEMENTAL DISCLOSURE CONTAINS CERTAIN “FORWARD-LOOKING STATEMENTS” THAT RELATE TO EXPECTATIONS, PROJECTIONS, ANTICIPATED EVENTS, TRENDS AND OTHER MATTERS THAT ARE NOT HISTORICAL FACTS. THESE FORWARD-LOOKING STATEMENTS REFLECT PREIT’S CURRENT VIEWS ABOUT FUTURE EVENTS AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS THAT MAY CAUSE FUTURE EVENTS, ACHIEVEMENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED BY THE FORWARD-LOOKING STATEMENTS. PREIT’S BUSINESS IS SUBJECT TO UNCERTAINTIES REGARDING THE REVENUES, OPERATING EXPENSES, LEASING ACTIVITIES, OCCUPANCY RATES, AND OTHER COMPETITIVE FACTORS RELATING TO PREIT’S PORTFOLIO AND CHANGES IN LOCAL MARKET CONDITIONS AS WELL AS GENERAL ECONOMIC, FINANCIAL AND POLITICAL CONDITIONS, WHICH MAY CAUSE FUTURE EVENTS, ACHIEVEMENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED BY THE FORWARD-LOOKING STATEMENTS. PREIT DISCLAIMS ANY DUTY TO UPDATE ANY FORWARD-LOOKING STATEMENTS SET FORTH IN THIS QUARTERLY SUPPLEMENTAL DISCLOSURE TO REFLECT NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. INVESTORS ARE ALSO DIRECTED TO CONSIDER THE RISKS DISCUSSED IN DOCUMENTS PREIT HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AND, IN PARTICULAR, PREIT’S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2004. Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005) COMPANY INFORMATION PENNSYLVANIA REIT 200 South Broad Street, Philadelphia, PA 19102 http://www.preit.com 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 and power centers located in the eastern United States. As of December 31, 2005, PREIT's portfolio consists of 51 retail properties (approximately 34.5 million square feet) in 13 states. PREIT’s portfolio includes 39 shopping malls, 12 strip and power centers and one office property. PREIT is headquartered in Philadelphia, Pennsylvania. Research Coverage Quarterly Earnings Schedule PREIT's quarterly results will be announced in accordance with the following schedule: Quarter 2006 (1) Company Analyst Phone Number Green Street Advisors Gregory R. Andrews (949) 640-8780 First Quarter 5/4/2006 Ben Yang (949) 640-8780 JP Morgan Michael W. Mueller (212) 622-6689 Second Quarter 8/3/2006 Anthony Paolone (212) 622-6682 Joshua Bederman (212) 622-6530 Third Quarter 11/2/2006 Stifel Nicolaus David M. Fick (410) 539-0000 Nathan Isbee (410) 454-4143 Fourth Quarter 3/1/2007 Lehman Brothers David Harris (212) 526-1790 Alexander D. Goldfarb (212) 526-5232 (1) Tentative dates. To participate in a quarterly conference call, please contact PREIT's investor relations department at (215) 875-0735. For additional information, please contact: Robert McCadden or Nurit Yaron 200 South Broad Street Philadelphia, PA 19102 Phone (215) 875-0700 Toll Free (866) 875-0700 Fax (215) 546-7311 Email [email protected] PAGE 1 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005) Timeline/Recent Developments Dividends and Distributions: February 23, 2006, the Board of Trustees of the Company declared a quarterly cash dividend of $0.57 per common share and a regular quarterly dividend of $1.375 per share on its 11.00% senior preferred shares. PREIT also will pay a previously announced Redemption of Rights of $0.001 per common share. All dividends are payable on March 15, 2006 to shareholders of record on March 1, 2006. January 13, 2006 PREIT announced the tax status of its dividend distributions for 2005. Acquisitions, dispositions, development and redevelopment activities: February 9, 2006 PREIT announced that it had completed the acquisition of approximately 540-acres of land parcels known as Springhills in Gainesville, Florida for $21.5 million. January 3, 2006 PREIT announced that it had acquired Woodland Mall in Grand Rapids, Michigan for $177.4 million. December 9, 2005 PREIT announced that it had begun construction of a new retail center anchored by The Home Depot (NYSE:HD) and situated on 43 acres at Route 9 and Sunrise Boulevard in Lacey Township, New Jersey. November 18, 2005, PREIT and Kravco Simon announced that they have completed the acquisition of Springfield Mall in Springfield, Pennsylvania for approximately $103.5 million. PREIT and Kravco Simon will each have a 50% ownership interest in the property. Financing activities: February 15, 2006 PREIT announced that it completed a $90 million financing of Valley Mall in Hagerstown, Maryland. December 9, 2005 PREIT announced that it had completed the refinancing of Willow Grove Park in Willow Grove, Pennsylvania with a new $160 million first mortgage loan. October 3, 2005, PREIT completed the refinancing of Cherry Hill Mall in Cherry Hill, NJ with a new $200 million first mortgage loan. Other activities: February 15, 2006 PREIT scheduled fourth quarter 2005 conference call on Thursday, March 2, 2006. December 15, 2005, PREIT announced that its Board of Trustees appointed M. Walter D’Alessio as a new trustee of PREIT. Mr. D’Alessio will serve on the Board until PREIT’s next Annual Meeting of Shareholders, at which time he will appear on the ballot with the other Class B trustees for election to a three year term. October 31, 2005 PREIT announced that its Board of Trustees had authorized a program to repurchase up to $100 million of the Company’s common shares. The program will be in effect until the end of 2007, subject to the Company’s authority to terminate the program earlier. October 31, 2005 PREIT announced its results for the third quarter and nine months ended September 30, 2005, and its 2006 guidance. NOTE: The press releases are available on the Company's website at www.preit.com. PAGE 2 Pennsylvania REIT QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2005) Stock Information PREIT's common stock trades on the New York Stock Exchange (symbol: PEI). PREIT's preferred stock trades on the New York Stock Exchange (symbol: PEIPRA). Year QUARTERS 2005 Year Quarter 2004 Year 2005 December September June March 2004 December 2003 Stock Information High Price$ 50.20 $ 42.60 $ 50.20 $ 48.10 $ 43.21 $ 43.70 $ 43.70 $ 36.30 Low Price$ 35.24 $ 35.24 $ 39.60 $ 39.66 $ 38.91 $ 30.25 $ 38.66 $ 24.70 Close$ 37.36 $ 37.36 $ 42.18 $ 47.50 $ 40.32 $ 42.80 $ 42.80 $ 36.30 Average Daily Trading Volume 209,537 345,222 165,764 119,916 146,698 161,659 123,000 109,892 Shares Outstanding and Market Value Information Common Shares Outstanding 36,520,715 36,520,715 36,714,465 36,511,624 36,474,699 36,272,162 36,272,162 35,544,265 O.P. Units 4,155,921 4,155,921 4,499,800 4,686,418 4,686,418 4,413,559 4,413,559 3,691,516 Total Shares Outstanding 40,676,636 40,676,636 41,214,265 41,198,042 41,161,117 40,685,721 40,685,721 39,235,781 Weighted Average of Common Shares 36,089,870 36,210,394 36,148,847 36,024,984 35,972,274 35,609,350 35,818,787 20,389,577 Weighted Average of O.P. Units 4,580,421 4,460,657 4,592,689 4,686,418 4,583,338 4,183,059 4,425,874 2,303,449 Weighted Average Common Shares and O.P. Units 40,670,291 40,671,051 40,741,536 40,711,402 40,555,612 39,792,409 40,244,661 22,693,026 Preferred Shares, Nominal Value$ 123,750,000 $ 123,750,000 $ 123,750,000 $ 123,750,000 $ 123,750,000 $ 123,750,000 $ 123,750,000 $ 123,750,000 Market Value of Shares (based on closing price)$ 1,643,429,121 $ 1,643,429,121 $ 1,862,167,698 $ 2,080,656,995 $ 1,783,366,237 $ 1,865,098,859 $ 1,865,098,859 $ 1,548,008,850 Distribution Information for Common Shares Dividend per share$ 2.250 $ 0.570 $ 0.570 $ 0.570 $ 0.540 $ 2.160 $ 0.540 $ 2.070 Annualized Dividend Yield (1) 6.0% 6.1% 5.4% 4.8% 5.4% 5.0% 5.0% 5.7% Capital Gain Pre-May 6$ - $ - $ - $ - $ - $ 0.026 $ 0.026 $ 0.096 Capital Gain Post-May 5$ - $ - $ - $ - $ - $ - $ - $ 0.213 Section 1250 Gain$ - $ - $ - $ - $ - $ 0.026 $ 0.026 $ 0.480 Return of Capital/Non-Taxable$ 0.175 $ 0.044 $ 0.044 $ 0.044 $ 0.043 $ 0.517 $ 0.182 $ 0.085 Qualified 5 Year Gain (incl.