Exhibit 99.1
Supplemental Financial and Operating Information
June 30, 2023
www.preit.com
OTCQB: PRET
OTCQB: PRETL, PRETM, PRETN
Pennsylvania Real Estate Investment Trust
Supplemental Financial and Operating Information
June 30, 2023
Table of Contents
Introduction | |
Earnings Release | 2 |
Changes in Funds from Operations (FFO) for the Three and Six Months Ended June 30, 2023 | 5 |
Market Capitalization and Capital Resources | 6 |
Operating Results | |
Statements of Operations - Three and Six Months Ended June 30, 2023 and 2022 | 7 |
Computation of Earnings Per Share - Three Months and Six Months Ended June 30, 2023 and 2022 | 8 |
Reconciliation of Net Operating Income (NOI) and EBITDAre (Non-GAAP Measures) - Three Months and Six Months Ended | |
June 30, 2023 and 2022 | 9 |
Reconciliation of Net Loss (GAAP Measure) to Net Operating Income (NOI) from Consolidated Properties (Non-GAAP Measure) - | |
Three Months Ended June 30, 2023 and 2022 | 10 |
Reconciliation of Equity in (Loss) Income of Partnerships (GAAP Measure) to Net Operating Income (NOI) from Equity Method | |
Investments, at Ownership Share (Non-GAAP Measure) - Three Months Ended June 30, 2023 and 2022 | 11 |
Reconciliation of Net Loss (GAAP Measure) to Net Operating Income (NOI) from Consolidated Properties (Non-GAAP Measure) - | |
Six Months Ended June 30, 2023 and 2022 | 12 |
Reconciliation of Equity in (Loss) Income of Partnerships (GAAP Measure) to Net Operating Income (NOI) from Equity Method | |
Investments, at Ownership Share (Non-GAAP Measure) - Six Months Ended June 30, 2023 and 2022 | 13 |
Reconciliation of Net Loss (GAAP Measure) to Funds From Operations (FFO) and Funds Available for Distribution (FAD) (Non- | |
GAAP Measures) - Six Months Ended June 30, 2023 and 2022 | 14 |
Condensed Consolidated Balance Sheets | 15 |
Assets and Liabilities - Equity Method Investments, at Ownership Share (Non-GAAP Measure) | 16 |
Operating Statistics | |
Leasing Activity Summary - Three and Six Months Ended June 30, 2023 | 17 |
Summarized Sales and Rent Per Square Foot and Occupancy Percentages | 20 |
Mall Occupancy Percentage and Sales Per Square Foot | 21 |
Top Twenty Tenants as of June 30, 2023 | 22 |
Lease Expirations as of June 30, 2023 | 23 |
Property Information as of June 30, 2023 | 24 |
Balance Sheet | |
Investment in Real Estate - Consolidated Properties | 27 |
Investment in Real Estate - Equity Method Investments at Ownership Share | 28 |
Capital Expenditures - Three and Six Months Ended June 30, 2023 | 29 |
Debt Analysis as of June 30, 2023 | 30 |
Debt Schedule as of June 30, 2023 | 32 |
Selected Debt Ratios | 33 |
Forward Looking Statements | 34 |
Definitions | 35 |
Pennsylvania Real Estate Investment Trust
Company Information
Background
PREIT (OTCQB:PRET) is a publicly traded real estate investment trust (REIT) that owns and manages innovative properties developed to be thoughtful, community-centric hubs. PREIT's robust portfolio of carefully curated, ever-evolving properties generates success for its tenants and meaningful impact for the communities it serves by keenly focusing on five core areas of established and emerging opportunity: multi- family & hotel, health & tech, retail, essentials & grocery and experiential. Located primarily in densely-populated regions, PREIT is a top operator of high quality, purposeful places that serve as one-stop destinations for customers to shop, dine, play and stay. The portfolio consists of 23 properties, 22 of which are operating properties and one is a development property. The 22 operating retail properties have a total of 18.3 million square feet and include 19 shopping malls and three other retail properties.
If you would like to learn more about PREIT or participate in our quarterly earnings conference call, please visit preit.com or contact:
Mario Ventresca
EVP & CFO
One Commerce Square
2005 Market Street, Suite 1000
Philadelphia, PA 19103
Telephone: (215) 875-0703
Heather Crowell heather@gregoryfca.com
Press release announcements are available on the Company's website at www.preit.com.
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CONTACT: AT THE COMPANY
Mario Ventresca
EVP & CFO (215) 875-0703
INVESTOR RELATIONS
Heather Crowell heather@gregoryfca.com
PREIT Reports Second Quarter 2023 Results
Core Mall Total Occupancy Grew to 94.2%, Portfolio 95.0% Leased
Core Mall Sales Per Square Foot Were $592 in June
Average Renewal Spreads Were 4.7% for the Quarter Ended June 30, 2023
Philadelphia, August 3, 2023 - PREIT (OTCQB:PRET) today reported results for the three and six months ended June 30, 2023. 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.
(per share amounts) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Net loss - basic and diluted | $ | (9.73) | $ | (3.32) | $ | (19.48) | $ | (10.72) | ||||
FFO | $ | (3.15) | $ | 1.72 | $ | (6.20) | $ | 1.51 | ||||
FFO, as adjusted | $ | (3.15) | $ | 1.71 | $ | (6.20) | $ | 0.83 |
"Our quarterly results demonstrate that our portfolio continues to be attractive to tenants and customers with core mall non- anchor occupancy improving 120 basis points and total leasing activity nearly 60% ahead of last year," said Joseph F. Coradino, Chairman and CEO of PREIT. "Improvements in occupancy and renewal spreads are clear indicators of compelling nature of our portfolio to tenants."
- Same Store NOI, excluding lease termination revenue, decreased 3.4% and decreased 2.2% when excluding Whole Foods at Plymouth Meeting for the three months ended June 30, 2023 compared to the three months ended June 30, 2022.
- Robust leasing activity is driving increased occupancy with Core Mall Total Occupancy increasing by 40 basis points to 94.2% compared to the second quarter 2022. Core Mall non-anchor Occupancy improved 70 basis points to 91.2% compared to the second quarter 2022.
- Core Mall total leased space, at 95.0%, exceeds occupied space by 80 basis points, and Core Mall non-anchor leased space, at 92.4%, is higher than occupied space by 120 basis points when including executed new leases slated for future occupancy, demonstrating the rapid pace of leasing activity.
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- For the rolling 12 month period ended June 30, 2023, Core Mall comparable sales were $592 per square foot, compared to $539 for the year ended December 31, 2019.
- Average renewal spreads for the three and six months ended June 30, 2023 were 4.7% and 5.1%, respectively.
- Since the beginning of 2023, the Company sold assets generating just over $30 million in gross proceeds.
Leasing and Redevelopment
- 216,000 square feet of leases are signed for future openings, which is expected to contribute annualized gross rent of approximately $6.15 million.
- Construction is underway on the new self-storage facility in previously unused, below grade space at Mall at Prince George's with an anticipated opening in the third quarter of 2023.
- Tilted 10 opened Phase II of its planned two-level indoor family entertainment center at Willow Grove Park in July 2023, adding family entertainment to this locally-loved destination shopping experience.
- At Moorestown Mall, construction is underway for the new state-of-the-art Cooper University Healthcare facility, expected to open its initial phase in fall 2023, and the 375-unit Pearl apartment development, following completion of the sale of land in the second quarter of 2022.
- At Springfield Town Center, tenant construction is underway for a new prototype, 32,000 square foot, LEGO® Discovery Center with an announced grand opening of August 9, 2023. Construction on the new 30,000 square foot Burlington location is also underway for an anticipated opening later this year. Municipal approvals were obtained for the development of 460 apartments and a 165-room hotel, setting the stage for sale of these parcels in the second half of 2023.
Primary Factors Affecting Financial Results for the Three Months Ended June 30, 2023 and 2022
- Net loss attributable to PREIT common shareholders was $51.8 million (which takes into consideration the accrual of preferred dividends that accumulated during the quarter but have not been paid), or $(9.73) per basic and diluted share for the three months ended June 30, 2023, compared to net loss attributable to PREIT common shareholders of $17.6 million, or $(3.32) per basic and diluted share for the three months ended June 30, 2022.
- Funds from Operations decreased in the three months ended June 30, 2023 compared to the prior year period primarily due to higher interest expense and a decrease in gain on sale of equity method investment.
- FFO for the three months ended June 30, 2023 was $(3.15) per diluted share and OP Unit compared to $1.72 per diluted share and OP Unit for the three months ended June 30, 2022.
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 and six months ended June 30, 2023 and 2022 is included on page 15.
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PREIT - Pennsylvania Real Estate Investment Trust published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 11:04:23 UTC.