false Q3 0000077281 --12-31 true true true false P168D P89M P300M 0000077281 2020-01-01 2020-09-30 xbrli:shares 0000077281 2020-11-06 0000077281 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-01-01 2020-09-30 0000077281 us-gaap:SeriesBPreferredStockMember 2020-01-01 2020-09-30 0000077281 us-gaap:SeriesCPreferredStockMember 2020-01-01 2020-09-30 0000077281 us-gaap:SeriesDPreferredStockMember 2020-01-01 2020-09-30 iso4217:USD 0000077281 2020-09-30 0000077281 2019-12-31 0000077281 us-gaap:SeriesBPreferredStockMember 2020-09-30 0000077281 us-gaap:SeriesBPreferredStockMember 2019-12-31 0000077281 us-gaap:SeriesCPreferredStockMember 2020-09-30 0000077281 us-gaap:SeriesCPreferredStockMember 2019-12-31 0000077281 us-gaap:SeriesDPreferredStockMember 2020-09-30 0000077281 us-gaap:SeriesDPreferredStockMember 2019-12-31 iso4217:USD xbrli:shares 0000077281 2020-07-01 2020-09-30 0000077281 2019-07-01 2019-09-30 0000077281 2019-01-01 2019-09-30 0000077281 us-gaap:SeriesBPreferredStockMember us-gaap:PreferredStockMember 2019-12-31 0000077281 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2019-12-31 0000077281 us-gaap:SeriesDPreferredStockMember us-gaap:PreferredStockMember 2019-12-31 0000077281 us-gaap:CommonStockMember 2019-12-31 0000077281 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-12-31 0000077281 us-gaap:NoncontrollingInterestMember 2019-12-31 0000077281 2020-01-01 2020-03-31 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2020-01-01 2020-03-31 0000077281 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-03-31 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0000077281 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0000077281 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0000077281 2020-03-31 0000077281 us-gaap:SeriesBPreferredStockMember us-gaap:PreferredStockMember 2020-03-31 0000077281 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2020-03-31 0000077281 us-gaap:SeriesDPreferredStockMember us-gaap:PreferredStockMember 2020-03-31 0000077281 us-gaap:CommonStockMember 2020-03-31 0000077281 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2020-03-31 0000077281 us-gaap:NoncontrollingInterestMember 2020-03-31 0000077281 2020-04-01 2020-06-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2020-04-01 2020-06-30 0000077281 us-gaap:NoncontrollingInterestMember 2020-04-01 2020-06-30 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000077281 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0000077281 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0000077281 2020-06-30 0000077281 us-gaap:SeriesBPreferredStockMember us-gaap:PreferredStockMember 2020-06-30 0000077281 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2020-06-30 0000077281 us-gaap:SeriesDPreferredStockMember us-gaap:PreferredStockMember 2020-06-30 0000077281 us-gaap:CommonStockMember 2020-06-30 0000077281 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2020-06-30 0000077281 us-gaap:NoncontrollingInterestMember 2020-06-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2020-07-01 2020-09-30 0000077281 us-gaap:NoncontrollingInterestMember 2020-07-01 2020-09-30 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-01 2020-09-30 0000077281 us-gaap:CommonStockMember 2020-07-01 2020-09-30 0000077281 us-gaap:AdditionalPaidInCapitalMember 2020-07-01 2020-09-30 0000077281 us-gaap:SeriesBPreferredStockMember us-gaap:PreferredStockMember 2020-09-30 0000077281 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2020-09-30 0000077281 us-gaap:SeriesDPreferredStockMember us-gaap:PreferredStockMember 2020-09-30 0000077281 us-gaap:CommonStockMember 2020-09-30 0000077281 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2020-09-30 0000077281 us-gaap:NoncontrollingInterestMember 2020-09-30 0000077281 us-gaap:SeriesBPreferredStockMember 2020-01-01 2020-03-31 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesBPreferredStockMember 2020-01-01 2020-03-31 0000077281 us-gaap:SeriesCPreferredStockMember 2020-01-01 2020-03-31 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesCPreferredStockMember 2020-01-01 2020-03-31 0000077281 us-gaap:SeriesDPreferredStockMember 2020-01-01 2020-03-31 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesDPreferredStockMember 2020-01-01 2020-03-31 0000077281 us-gaap:SeriesBPreferredStockMember 2020-04-01 2020-06-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesBPreferredStockMember 2020-04-01 2020-06-30 0000077281 us-gaap:SeriesCPreferredStockMember 2020-04-01 2020-06-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesCPreferredStockMember 2020-04-01 2020-06-30 0000077281 us-gaap:SeriesDPreferredStockMember 2020-04-01 2020-06-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesDPreferredStockMember 2020-04-01 2020-06-30 0000077281 2019-01-01 2019-03-31 0000077281 2019-04-01 2019-06-30 0000077281 us-gaap:SeriesBPreferredStockMember 2019-01-01 2019-03-31 0000077281 us-gaap:SeriesBPreferredStockMember 2019-04-01 2019-06-30 0000077281 us-gaap:SeriesBPreferredStockMember 2019-07-01 2019-09-30 0000077281 us-gaap:SeriesCPreferredStockMember 2019-01-01 2019-03-31 0000077281 us-gaap:SeriesCPreferredStockMember 2019-04-01 2019-06-30 0000077281 us-gaap:SeriesCPreferredStockMember 2019-07-01 2019-09-30 0000077281 us-gaap:SeriesDPreferredStockMember 2019-01-01 2019-03-31 0000077281 us-gaap:SeriesDPreferredStockMember 2019-04-01 2019-06-30 0000077281 us-gaap:SeriesDPreferredStockMember 2019-07-01 2019-09-30 0000077281 2019-03-31 0000077281 2019-06-30 0000077281 2019-09-30 0000077281 us-gaap:SeriesBPreferredStockMember 2020-03-31 0000077281 us-gaap:SeriesBPreferredStockMember 2020-06-30 0000077281 us-gaap:SeriesBPreferredStockMember 2019-03-31 0000077281 us-gaap:SeriesBPreferredStockMember 2019-06-30 0000077281 us-gaap:SeriesBPreferredStockMember 2019-09-30 0000077281 us-gaap:SeriesCPreferredStockMember 2020-03-31 0000077281 us-gaap:SeriesCPreferredStockMember 2020-06-30 0000077281 us-gaap:SeriesCPreferredStockMember 2019-03-31 0000077281 us-gaap:SeriesCPreferredStockMember 2019-06-30 0000077281 us-gaap:SeriesCPreferredStockMember 2019-09-30 0000077281 us-gaap:SeriesDPreferredStockMember 2020-03-31 0000077281 us-gaap:SeriesDPreferredStockMember 2020-06-30 0000077281 us-gaap:SeriesDPreferredStockMember 2019-03-31 0000077281 us-gaap:SeriesDPreferredStockMember 2019-06-30 0000077281 us-gaap:SeriesDPreferredStockMember 2019-09-30 0000077281 2018-12-31 0000077281 us-gaap:SeriesBPreferredStockMember us-gaap:PreferredStockMember 2018-12-31 0000077281 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2018-12-31 0000077281 us-gaap:SeriesDPreferredStockMember us-gaap:PreferredStockMember 2018-12-31 0000077281 us-gaap:CommonStockMember 2018-12-31 0000077281 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-12-31 0000077281 us-gaap:NoncontrollingInterestMember 2018-12-31 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-01-01 2019-03-31 0000077281 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000077281 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0000077281 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000077281 us-gaap:SeriesBPreferredStockMember us-gaap:PreferredStockMember 2019-03-31 0000077281 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2019-03-31 0000077281 us-gaap:SeriesDPreferredStockMember us-gaap:PreferredStockMember 2019-03-31 0000077281 us-gaap:CommonStockMember 2019-03-31 0000077281 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-03-31 0000077281 us-gaap:NoncontrollingInterestMember 2019-03-31 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-04-01 2019-06-30 0000077281 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000077281 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0000077281 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000077281 us-gaap:SeriesBPreferredStockMember us-gaap:PreferredStockMember 2019-06-30 0000077281 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2019-06-30 0000077281 us-gaap:SeriesDPreferredStockMember us-gaap:PreferredStockMember 2019-06-30 0000077281 us-gaap:CommonStockMember 2019-06-30 0000077281 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-06-30 0000077281 us-gaap:NoncontrollingInterestMember 2019-06-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-07-01 2019-09-30 0000077281 us-gaap:NoncontrollingInterestMember 2019-07-01 2019-09-30 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0000077281 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0000077281 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0000077281 us-gaap:SeriesBPreferredStockMember us-gaap:PreferredStockMember 2019-09-30 0000077281 us-gaap:SeriesCPreferredStockMember us-gaap:PreferredStockMember 2019-09-30 0000077281 us-gaap:SeriesDPreferredStockMember us-gaap:PreferredStockMember 2019-09-30 0000077281 us-gaap:CommonStockMember 2019-09-30 0000077281 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0000077281 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-09-30 0000077281 us-gaap:NoncontrollingInterestMember 2019-09-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesBPreferredStockMember 2019-01-01 2019-03-31 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesCPreferredStockMember 2019-01-01 2019-03-31 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesDPreferredStockMember 2019-01-01 2019-03-31 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesBPreferredStockMember 2019-04-01 2019-06-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesCPreferredStockMember 2019-04-01 2019-06-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesDPreferredStockMember 2019-04-01 2019-06-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesBPreferredStockMember 2019-07-01 2019-09-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesCPreferredStockMember 2019-07-01 2019-09-30 0000077281 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember us-gaap:SeriesDPreferredStockMember 2019-07-01 2019-09-30 pei:Property pei:State 0000077281 pei:MallMember 2020-09-30 0000077281 pei:OtherRetailMember 2020-09-30 0000077281 pei:DevelopmentPropertiesMember 2020-09-30 xbrli:pure 0000077281 pei:PREITAssociatesLPOperatingPartnershipMember 2020-09-30 pei:subsidiary pei:Segment 0000077281 pei:A2018RevolvingFacilityMember 2020-01-01 2020-09-30 0000077281 pei:A2018RevolvingFacilityMember 2020-09-30 0000077281 pei:TermLoansMaturingTwoThousandTwentyOneMember 2020-01-01 2020-09-30 0000077281 pei:TermLoansMaturingTwoThousandTwentyOneMember 2020-09-30 0000077281 pei:TermLoansMaturingTwoThousandTwentyThreeMember 2020-01-01 2020-09-30 0000077281 pei:TermLoansMaturingTwoThousandTwentyThreeMember 2020-09-30 0000077281 pei:BridgeFacilityMember 2020-01-01 2020-09-30 0000077281 pei:BridgeFacilityMember 2020-09-30 0000077281 us-gaap:MortgagesMember 2020-01-01 2020-09-30 0000077281 us-gaap:MortgagesMember 2020-09-30 0000077281 pei:BridgeFacilityMember 2020-08-11 0000077281 pei:BridgeFacilityMember 2020-10-16 2020-10-16 0000077281 us-gaap:AccountingStandardsUpdate201613Member 2020-09-30 0000077281 us-gaap:InterestExpenseMember pei:DevelopmentAndRedevelopmentActivitiesMember 2020-07-01 2020-09-30 0000077281 us-gaap:InterestExpenseMember pei:DevelopmentAndRedevelopmentActivitiesMember 2019-07-01 2019-09-30 0000077281 us-gaap:InterestExpenseMember pei:DevelopmentAndRedevelopmentActivitiesMember 2020-01-01 2020-09-30 0000077281 us-gaap:InterestExpenseMember pei:DevelopmentAndRedevelopmentActivitiesMember 2019-01-01 2019-09-30 0000077281 pei:SalariesAndBenefitsMember pei:DevelopmentAndRedevelopmentActivitiesMember 2020-07-01 2020-09-30 0000077281 pei:SalariesAndBenefitsMember pei:DevelopmentAndRedevelopmentActivitiesMember 2019-07-01 2019-09-30 0000077281 pei:SalariesAndBenefitsMember pei:DevelopmentAndRedevelopmentActivitiesMember 2020-01-01 2020-09-30 0000077281 pei:SalariesAndBenefitsMember pei:DevelopmentAndRedevelopmentActivitiesMember 2019-01-01 2019-09-30 0000077281 pei:CapitalizedRealEstateTaxesMember pei:DevelopmentAndRedevelopmentActivitiesMember 2020-07-01 2020-09-30 0000077281 pei:CapitalizedRealEstateTaxesMember pei:DevelopmentAndRedevelopmentActivitiesMember 2019-07-01 2019-09-30 0000077281 pei:CapitalizedRealEstateTaxesMember pei:DevelopmentAndRedevelopmentActivitiesMember 2020-01-01 2020-09-30 0000077281 pei:CapitalizedRealEstateTaxesMember pei:DevelopmentAndRedevelopmentActivitiesMember 2019-01-01 2019-09-30 0000077281 pei:SalariesAndBenefitsExpenseMember pei:LeasingActivitiesMember 2019-07-01 2019-09-30 0000077281 pei:SalariesAndBenefitsExpenseMember pei:LeasingActivitiesMember 2020-01-01 2020-09-30 0000077281 pei:SalariesAndBenefitsExpenseMember pei:LeasingActivitiesMember 2019-01-01 2019-09-30 0000077281 pei:CapitalCityMallCampHillPennsylvaniaMember us-gaap:MortgagesMember 2020-09-30 0000077281 pei:CapitalCityMallCampHillPennsylvaniaMember us-gaap:MortgagesMember 2020-08-17 2020-08-17 0000077281 2019-11-01 2019-11-30 0000077281 pei:WoodlandMallMember 2020-01-01 2020-01-31 0000077281 pei:MagnoliaMallMember 2020-03-01 2020-03-31 0000077281 pei:CapitalCityMallAndMagnoliaMallMember 2019-12-31 0000077281 pei:CapitalCityMallAndMagnoliaMallMember 2019-01-01 2019-12-31 0000077281 pei:WoodlandMallAndMagnoliaMallMember 2020-03-01 2020-03-31 0000077281 pei:MagnoliaMallValleyMallAndJacksonvilleMember 2020-06-30 0000077281 pei:MagnoliaMallValleyMallAndJacksonvilleMember 2020-06-01 2020-06-30 0000077281 pei:UndevelopedLandParcelGainesvilleFloridaMember 2019-03-31 0000077281 pei:UndevelopedLandParcelGainesvilleFloridaMember 2019-03-01 2019-03-31 0000077281 pei:UndevelopedLandParcelGainesvilleFloridaMember 2019-12-01 2019-12-31 0000077281 srt:PartnershipInterestMember 2019-03-31 0000077281 srt:PartnershipInterestMember pei:UndevelopedLandParcelAdjacentToGloucesterPremiumOutletsMember 2019-03-01 2019-03-31 0000077281 pei:UndevelopedLandParcelAdjacentToGloucesterPremiumOutletsMember 2019-03-01 2019-03-31 0000077281 pei:FashionDistrictPhiladelphiaMember 2018-01-31 0000077281 pei:FashionDistrictPhiladelphiaMember 2018-01-01 2018-01-31 0000077281 pei:FashionDistrictPhiladelphiaMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-01-01 2018-01-31 0000077281 pei:FashionDistrictPhiladelphiaMember 2018-01-01 2018-03-31 0000077281 pei:FashionDistrictPhiladelphiaMember 2019-07-01 2019-09-30 0000077281 pei:FashionDistrictPhiladelphiaMember 2019-07-31 0000077281 us-gaap:MortgagesMember srt:MinimumMember 2020-01-01 2020-09-30 0000077281 us-gaap:MortgagesMember srt:MaximumMember 2020-01-01 2020-09-30 0000077281 pei:LehighValleyAssociatesLPMember pei:LehighValleyAssociatesLPMember 2019-09-30 0000077281 pei:FashionDistrictPhiladelphiaMember pei:FashionDistrictPhiladelphiaMember 2019-09-30 0000077281 pei:LehighValleyAssociatesLPMember 2020-09-30 0000077281 pei:LehighValleyAssociatesLPMember 2019-12-31 0000077281 pei:LehighValleyAssociatesLPMember 2020-07-01 2020-09-30 0000077281 pei:LehighValleyAssociatesLPMember 2019-07-01 2019-09-30 0000077281 pei:LehighValleyAssociatesLPMember 2020-01-01 2020-09-30 0000077281 pei:LehighValleyAssociatesLPMember 2019-01-01 2019-09-30 0000077281 pei:FashionDistrictPhiladelphiaMember 2020-09-30 0000077281 pei:FashionDistrictPhiladelphiaMember 2019-12-31 0000077281 pei:FashionDistrictPhiladelphiaMember 2020-07-01 2020-09-30 0000077281 pei:FashionDistrictPhiladelphiaMember 2019-07-01 2019-09-30 0000077281 pei:FashionDistrictPhiladelphiaMember 2020-01-01 2020-09-30 0000077281 pei:FashionDistrictPhiladelphiaMember 2019-01-01 2019-09-30 pei:Agreement 0000077281 pei:CreditAgreementsMember 2020-09-30 0000077281 pei:CreditAgreementsMember pei:A2018RevolvingFacilityMember 2020-09-30 0000077281 pei:CreditAgreementsMember pei:A2018TermLoanFacilityMember 2020-09-30 0000077281 pei:CreditAgreementsMember pei:A2014SevenYearTermLoanMember 2020-09-30 0000077281 pei:CreditAgreementsMember pei:BridgeFacilityMember 2020-01-01 2020-09-30 0000077281 pei:CreditAgreementsMember pei:A2018RevolvingFacilityMember 2020-03-30 0000077281 pei:CreditAgreementsMember pei:A2018RevolvingFacilityMember 2020-03-31 0000077281 pei:CreditAgreementsMember pei:BridgeFacilityMember 2020-08-11 0000077281 pei:CreditAgreementsMember pei:BridgeFacilityMember 2020-09-30 0000077281 pei:CreditAgreementsMember pei:BridgeFacilityMember us-gaap:SubsequentEventMember 2020-10-16 2020-10-16 0000077281 pei:CreditAgreementsMember pei:TermLoansMember 2020-09-30 0000077281 us-gaap:UnsecuredDebtMember 2020-09-30 0000077281 pei:PropertyWithAverageSaleOfMoreThan500DollarsPerSquareFootMember pei:CreditAgreementsMember 2020-01-01 2020-09-30 0000077281 pei:PropertyOtherThanWithAverageSalesOf500DollarsPerSquareFootMember pei:CreditAgreementsMember 2020-01-01 2020-09-30 0000077281 pei:A2018RevolvingFacilityMember pei:CreditAgreementsMember 2020-07-27 2020-07-27 0000077281 pei:RatioOneMember us-gaap:LondonInterbankOfferedRateLIBORMember us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30 0000077281 pei:RatioOneMember us-gaap:BaseRateMember us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30 0000077281 pei:RatioOneMember us-gaap:LondonInterbankOfferedRateLIBORMember pei:TermLoansMember 2020-01-01 2020-09-30 0000077281 pei:RatioOneMember us-gaap:BaseRateMember pei:TermLoansMember 2020-01-01 2020-09-30 0000077281 pei:RatioTwoMember us-gaap:LondonInterbankOfferedRateLIBORMember us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30 0000077281 pei:RatioTwoMember us-gaap:BaseRateMember us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30 0000077281 pei:RatioTwoMember us-gaap:LondonInterbankOfferedRateLIBORMember pei:TermLoansMember 2020-01-01 2020-09-30 0000077281 pei:RatioTwoMember us-gaap:BaseRateMember pei:TermLoansMember 2020-01-01 2020-09-30 0000077281 pei:RatioThreeMember us-gaap:LondonInterbankOfferedRateLIBORMember us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30 0000077281 pei:RatioThreeMember us-gaap:BaseRateMember us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30 0000077281 pei:RatioThreeMember us-gaap:LondonInterbankOfferedRateLIBORMember pei:TermLoansMember 2020-01-01 2020-09-30 0000077281 pei:RatioThreeMember us-gaap:BaseRateMember pei:TermLoansMember 2020-01-01 2020-09-30 0000077281 pei:RatioFourMember us-gaap:LondonInterbankOfferedRateLIBORMember us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30 0000077281 pei:RatioFourMember us-gaap:BaseRateMember us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30 0000077281 pei:RatioFourMember us-gaap:LondonInterbankOfferedRateLIBORMember pei:TermLoansMember 2020-01-01 2020-09-30 0000077281 pei:RatioFourMember us-gaap:BaseRateMember pei:TermLoansMember 2020-01-01 2020-09-30 0000077281 pei:RatioFiveMember us-gaap:LondonInterbankOfferedRateLIBORMember us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30 0000077281 pei:RatioFiveMember us-gaap:BaseRateMember us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30 0000077281 pei:RatioFiveMember us-gaap:LondonInterbankOfferedRateLIBORMember pei:TermLoansMember 2020-01-01 2020-09-30 0000077281 pei:RatioFiveMember us-gaap:BaseRateMember pei:TermLoansMember 2020-01-01 2020-09-30 0000077281 pei:RatioOneMember 2020-01-01 2020-09-30 0000077281 pei:RatioTwoMember srt:MinimumMember 2020-01-01 2020-09-30 0000077281 pei:RatioTwoMember srt:MaximumMember 2020-01-01 2020-09-30 0000077281 pei:RatioThreeMember srt:MinimumMember 2020-01-01 2020-09-30 0000077281 pei:RatioThreeMember srt:MaximumMember 2020-01-01 2020-09-30 0000077281 pei:RatioFourMember srt:MinimumMember 2020-01-01 2020-09-30 0000077281 pei:RatioFourMember srt:MaximumMember 2020-01-01 2020-09-30 0000077281 pei:RatioFiveMember 2020-01-01 2020-09-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermOneMember 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermOneMember 2020-03-30 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermTwoPriorToAndIncludingSeptemberThirtyTwentyTwentyMember 2020-03-30 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermTwoSeptemberThirtyTwentyTwentyThereafterMember 2020-03-30 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermTwoMember 2020-03-30 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermTwoMember srt:MaximumMember 2020-03-30 2020-03-30 utr:Q pei:Occasion 0000077281 pei:CreditAgreementsMember pei:CovenantTermThreeOnOrBeforeSeptemberThirtyTwentyTwentyMember 2020-03-30 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermThreeSeptemberThirtyTwentyTwentyThereafterMember 2020-03-30 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermFourThroughSeptemberThirtyTwentyTwentyMember 2020-03-30 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermFourAfterSeptemberThirtyTwentyTwentyThroughJuneThirtyTwentyTwentyOneMember 2020-03-30 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermFourAfterJuneThirtyTwentyTwentyOneMember 2020-03-30 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermFiveMember 2020-03-30 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermSixMember 2020-03-30 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermSevenMember 2020-03-30 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermDuringSuspensionPeriodMember 2020-03-30 0000077281 pei:CreditAgreementsMember pei:CovenantTermEndOfSuspensionPeriodAndThroughSeptemberThirtyTwentyTwentyMember 2020-03-30 0000077281 pei:A2018TermLoanFacilityMember pei:CreditAgreementsMember srt:MinimumMember 2020-01-01 2020-09-30 0000077281 pei:A2018TermLoanFacilityMember pei:CreditAgreementsMember 2020-01-01 2020-09-30 0000077281 pei:A2018TermLoanFacilityMember pei:CreditAgreementsMember srt:MinimumMember 2020-09-30 0000077281 pei:TermLoansMember pei:CreditAgreementsMember 2020-01-01 2020-09-30 0000077281 pei:FederalFundsRateMember pei:BridgeFacilityBaseRateLoansMember 2020-01-01 2020-09-30 0000077281 pei:LIBORMarketIndexRateMember pei:BridgeFacilityBaseRateLoansMember 2020-01-01 2020-09-30 0000077281 us-gaap:BaseRateMember srt:MinimumMember pei:BridgeFacilityBaseRateLoansMember 2020-01-01 2020-09-30 0000077281 pei:BridgeFacilityBaseRateLoansMember 2020-09-30 0000077281 us-gaap:LondonInterbankOfferedRateLIBORMember pei:BridgeFacilityLIBORLoansMember 2020-01-01 2020-09-30 0000077281 srt:MaximumMember pei:BridgeFacilityMember 2020-09-30 0000077281 pei:A2018RevolvingFacilityMember pei:CreditAgreementsAndBridgeFacilityMember 2020-07-01 2020-09-30 0000077281 pei:A2018RevolvingFacilityMember pei:CreditAgreementsAndBridgeFacilityMember 2019-07-01 2019-09-30 0000077281 pei:A2018RevolvingFacilityMember pei:CreditAgreementsAndBridgeFacilityMember 2020-01-01 2020-09-30 0000077281 pei:A2018RevolvingFacilityMember pei:CreditAgreementsAndBridgeFacilityMember 2019-01-01 2019-09-30 0000077281 pei:TermLoansMember pei:CreditAgreementsAndBridgeFacilityMember 2020-07-01 2020-09-30 0000077281 pei:TermLoansMember pei:CreditAgreementsAndBridgeFacilityMember 2019-07-01 2019-09-30 0000077281 pei:TermLoansMember pei:CreditAgreementsAndBridgeFacilityMember 2020-01-01 2020-09-30 0000077281 pei:TermLoansMember pei:CreditAgreementsAndBridgeFacilityMember 2019-01-01 2019-09-30 0000077281 us-gaap:CarryingReportedAmountFairValueDisclosureMember pei:MortgageLoanMember 2020-09-30 0000077281 us-gaap:EstimateOfFairValueFairValueDisclosureMember pei:MortgageLoanMember 2020-09-30 0000077281 us-gaap:CarryingReportedAmountFairValueDisclosureMember pei:MortgageLoanMember 2019-12-31 0000077281 us-gaap:EstimateOfFairValueFairValueDisclosureMember pei:MortgageLoanMember 2019-12-31 0000077281 pei:MortgageLoanMember 2020-09-30 0000077281 pei:MortgageLoanMember 2019-12-31 0000077281 pei:CapitalCityMallCampHillPennsylvaniaMember us-gaap:CommercialRealEstateMember us-gaap:MortgagesMember srt:MinimumMember 2020-01-01 2020-09-30 0000077281 pei:CapitalCityMallCampHillPennsylvaniaMember us-gaap:CommercialRealEstateMember us-gaap:MortgagesMember srt:MaximumMember 2020-01-01 2020-09-30 0000077281 pei:CapitalCityMallCampHillPennsylvaniaMember us-gaap:CommercialRealEstateMember us-gaap:MortgagesMember 2020-01-01 2020-09-30 0000077281 pei:CapitalCityMallCampHillPennsylvaniaMember us-gaap:CommercialRealEstateMember us-gaap:MortgagesMember 2020-06-30 0000077281 pei:CapitalCityMallCampHillPennsylvaniaMember us-gaap:CommercialRealEstateMember us-gaap:MortgagesMember 2020-04-01 2020-06-30 0000077281 pei:WyomingValleyMallMember us-gaap:CommercialRealEstateMember us-gaap:MortgagesMember 2019-09-26 0000077281 pei:WyomingValleyMallMember us-gaap:CommercialRealEstateMember us-gaap:MortgagesMember 2019-09-25 2019-09-26 0000077281 pei:WyomingValleyMallMember us-gaap:CommercialRealEstateMember us-gaap:MortgagesMember 2019-09-01 2019-09-30 0000077281 pei:WyomingValleyMallMember us-gaap:CommercialRealEstateMember us-gaap:MortgagesMember 2019-07-01 2019-09-30 0000077281 pei:CapitalCityMallCampHillPennsylvaniaMember us-gaap:CommercialRealEstateMember us-gaap:MortgagesMember 2019-03-01 2019-03-31 0000077281 pei:PaycheckProtectionProgramOfCoronavirusAidReliefAndEconomicSecurityCARESActMember pei:NotePayableMember 2020-04-01 2020-04-30 0000077281 pei:PaycheckProtectionProgramOfCoronavirusAidReliefAndEconomicSecurityCARESActMember pei:NotePayableMember 2020-04-30 0000077281 us-gaap:SubsequentEventMember pei:CreditAgreementsMember 2020-11-01 0000077281 us-gaap:ConstructionInProgressMember 2020-09-30 0000077281 pei:FashionDistrictPhiladelphiaMember pei:MacerichMember us-gaap:CorporateJointVentureMember 2020-09-30 0000077281 pei:FashionDistrictPhiladelphiaMember pei:MacerichMember us-gaap:CorporateJointVentureMember 2020-01-01 2020-09-30 0000077281 pei:FashionDistrictPhiladelphiaMember 2020-09-30 0000077281 pei:FashionDistrictPhiladelphiaMember 2020-01-01 2020-09-30 0000077281 2020-09-25 0000077281 2020-09-24 2020-09-25 0000077281 pei:JacksonvilleMallJacksonvilleNorthCarolinaMember 2019-01-01 2019-09-30 0000077281 pei:CherryHillMallInCherryHillNewJerseyMember 2020-01-01 2020-09-30 0000077281 pei:CherryHillMallInCherryHillNewJerseyMember 2020-04-01 2020-04-30 0000077281 us-gaap:InterestRateSwapMember 2020-09-30 0000077281 us-gaap:InterestRateSwapMember 2020-08-30 0000077281 pei:InterestRateSwaps2021MaturityMember 2020-09-30 0000077281 pei:InterestRateSwaps2023MaturityMember 2020-09-30 0000077281 pei:InterestRateSwaps2020MaturityMember 2019-12-31 0000077281 pei:InterestRateSwaps2021MaturityMember 2019-12-31 0000077281 pei:InterestRateSwaps2023MaturityMember 2019-12-31 0000077281 srt:MinimumMember 2020-09-30 0000077281 srt:MaximumMember 2020-09-30 0000077281 pei:SolarPanelLeasesMember 2020-07-01 2020-09-30 0000077281 pei:SolarPanelLeasesMember 2020-01-01 2020-09-30 0000077281 pei:GroundLeaseMember 2020-07-01 2020-09-30 0000077281 pei:OfficeEquipmentAndVehicleLeasesMember 2020-07-01 2020-09-30 0000077281 pei:GroundLeaseMember 2020-01-01 2020-09-30 0000077281 pei:OfficeEquipmentAndVehicleLeasesMember 2020-01-01 2020-09-30

Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2020 

or

 

Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     

Commission File Number: 001-6300

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

(Exact name of Registrant as specified in its charter)

 

Pennsylvania

 

23-6216339

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

One Commerce Square

2005 Market Street, Suite 1000

Philadelphia, PA

 

19103

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code (215875-0700

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of Exchange on which registered

Shares of Beneficial Interest, par value $1.00 per share

PEI

New York Stock Exchange

Series B Preferred Shares, par value $0.01 per share

PEIPrB

New York Stock Exchange

Series C Preferred Shares, par value $0.01 per share

PEIPrC

New York Stock Exchange

Series D Preferred Shares, par value $0.01 per share

PEIPrD

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes       No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes       No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes      No  

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. On November 6, 2020, 79,537,167 shares of beneficial interest, par value $1.00 per share, of the Registrant were outstanding.

 

 

 


Table of Contents

 

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

 

CONTENTS

 

 

 

 

Page

 

PART I—FINANCIAL INFORMATION

 

 

 

 

 

Item 1.

 

Financial Statements (Unaudited):

1

 

 

 

 

 

 

Consolidated Balance Sheets—September 30, 2020 and December 31, 2019

1

 

 

 

 

 

 

Consolidated Statements of Operations—Three and Nine Months Ended September 30, 2020 and 2019

2

 

 

 

 

 

 

Consolidated Statements of Comprehensive Income (Loss)—Three and Nine Months Ended September 30, 2020 and 2019

4

 

 

 

 

 

 

Consolidated Statements of Equity—Three and Nine Months Ended September 30, 2020 and 2019

5

 

 

 

 

 

 

Consolidated Statements of Cash Flows—Nine Months Ended September 30, 2020 and 2019

7

 

 

 

 

 

 

Notes to Unaudited Consolidated Financial Statements

8

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

26

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

52

 

 

 

 

Item 4.

 

Controls and Procedures

53

 

 

 

 

 

 

PART II—OTHER INFORMATION

 

 

 

 

 

Item 1.

 

Legal Proceedings

54

 

 

 

 

Item 1A.

 

Risk Factors

54

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

59

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

60

 

 

 

 

Item 4.

 

Not Applicable

 

 

 

 

 

Item 5.

 

Not Applicable

 

 

 

 

 

Item 6.

 

Exhibits

61

 

 

 

 

Signatures

 

 

63

 

Except as the context otherwise requires, references in this Quarterly Report on Form 10-Q to “we,” “our,” “us,” the “Company” and “PREIT” refer to Pennsylvania Real Estate Investment Trust and its subsidiaries, including our operating partnership, PREIT Associates, L.P. References in this Quarterly Report on Form 10-Q to “PREIT Associates” or the “Operating Partnership” refer to PREIT Associates, L.P. Where the context so requires, references in this Quarterly Report on Form 10-Q to “we”, “our,” “us,” the “Company” and “PREIT”

refer to the reorganized Company following emergence from the Chapter 11 Cases described herein.

 


Table of Contents

 

Item 1. FINANCIAL STATEMENTS

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

CONSOLIDATED BALANCE SHEETS

 

 

 

September 30, 2020

 

 

December 31, 2019

 

(in thousands, except per share amounts)

 

(Unaudited)

 

 

 

 

 

ASSETS:

 

 

 

 

 

 

 

 

INVESTMENTS IN REAL ESTATE, at cost:

 

 

 

 

 

 

 

 

Operating properties

 

$

3,163,656

 

 

$

3,099,034

 

Construction in progress

 

 

46,872

 

 

 

106,011

 

Land held for development

 

 

5,881

 

 

 

5,881

 

Total investments in real estate

 

 

3,216,409

 

 

 

3,210,926

 

Accumulated depreciation

 

 

(1,280,117

)

 

 

(1,202,722

)

Net investments in real estate

 

 

1,936,292

 

 

 

2,008,204

 

INVESTMENTS IN PARTNERSHIPS, at equity:

 

 

176,070

 

 

 

159,993

 

OTHER ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

36,373

 

 

 

12,211

 

Tenant and other receivables

 

 

64,367

 

 

 

41,261

 

Intangible assets (net of accumulated amortization of $19,896 and $18,248 at

   September 30, 2020 and December 31, 2019, respectively)

 

 

11,756

 

 

 

13,404

 

Deferred costs and other assets, net

 

 

138,821

 

 

 

103,688

 

Assets held for sale

 

 

1,384

 

 

 

12,506

 

Total assets

 

$

2,365,063

 

 

$

2,351,267

 

LIABILITIES:

 

 

 

 

 

 

 

 

Mortgage loans payable, net

 

$

890,848

 

 

$

899,753

 

Term Loans, net

 

 

559,040

 

 

 

548,025

 

Revolving Facilities

 

 

375,000

 

 

 

255,000

 

Tenants’ deposits and deferred rent

 

 

10,601

 

 

 

13,006

 

Distributions in excess of partnership investments

 

 

77,848

 

 

 

87,916

 

Fair value of derivative liabilities

 

 

27,694

 

 

 

13,126

 

Accrued expenses and other liabilities

 

 

105,637

 

 

 

107,016

 

Total liabilities

 

 

2,046,668

 

 

 

1,923,842

 

COMMITMENTS AND CONTINGENCIES:

 

 

 

 

 

 

 

 

EQUITY:

 

 

 

 

 

 

 

 

Series B Preferred Shares, $.01 par value per share; 25,000 shares authorized; 3,450 shares issued and outstanding; liquidation preference of $87,840 and $86,250 at September 30, 2020 and December 31, 2019, 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 $175,605 and $172,500 at September 30, 2020 and December 31, 2019, 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 $127,149 and $125,000 at September 30, 2020 and December 31, 2019, respectively

 

 

50

 

 

 

50

 

Shares of beneficial interest, $1.00 par value per share; 200,000 shares authorized; 79,490 and 77,550 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

 

 

79,490

 

 

 

77,550

 

Capital contributed in excess of par

 

 

1,770,070

 

 

 

1,766,883

 

Accumulated other comprehensive loss

 

 

(27,828

)

 

 

(12,556

)

Distributions in excess of net income

 

 

(1,504,371

)

 

 

(1,408,352

)

Total equity—Pennsylvania Real Estate Investment Trust

 

 

317,515

 

 

 

423,679

 

Noncontrolling interest

 

 

880

 

 

 

3,746

 

Total equity

 

 

318,395

 

 

 

427,425

 

Total liabilities and equity

 

$

2,365,063

 

 

$

2,351,267

 

 

See accompanying notes to the unaudited consolidated financial statements.

1


Table of Contents

 

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

(in thousands of dollars)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

REVENUE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease revenue

 

$

58,473

 

 

$

73,310

 

 

$

178,313

 

 

$

223,668

 

Expense reimbursements

 

 

4,040

 

 

 

5,364

 

 

 

11,321

 

 

 

15,342

 

Other real estate revenue

 

 

1,336

 

 

 

2,202

 

 

 

4,803

 

 

 

7,619

 

Total real estate revenue

 

 

63,849

 

 

 

80,876

 

 

 

194,437

 

 

 

246,629

 

Other income

 

 

340

 

 

 

498

 

 

 

764

 

 

 

1,440

 

Total revenue

 

 

64,189

 

 

 

81,374

 

 

 

195,201

 

 

 

248,069

 

EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAM and real estate taxes

 

 

(27,688

)

 

 

(28,320

)

 

 

(80,418

)

 

 

(85,891

)

Utilities

 

 

(3,530

)

 

 

(4,009

)

 

 

(8,971

)

 

 

(11,350

)

Other property operating expenses

 

 

(1,827

)

 

 

(1,836

)

 

 

(5,699

)

 

 

(5,815

)

Total property operating expenses

 

 

(33,045

)

 

 

(34,165

)

 

 

(95,088

)

 

 

(103,056

)

Depreciation and amortization

 

 

(34,420

)

 

 

(31,236

)

 

 

(95,597

)

 

 

(98,085

)

General and administrative expenses

 

 

(9,526

)

 

 

(10,605

)

 

 

(30,790

)

 

 

(33,419

)

Provision for employee separation expenses

 

 

(60

)

 

 

(218

)

 

 

(1,173

)

 

 

(1,078

)

Insurance recoveries, net

 

 

-

 

 

 

2,878

 

 

 

586

 

 

 

4,494

 

Project costs and other expenses

 

 

(124

)

 

 

(80

)

 

 

(287

)

 

 

(267

)

Total operating expenses

 

 

(77,175

)

 

 

(73,426

)

 

 

(222,349

)

 

 

(231,411

)

Interest expense, net

 

 

(20,260

)

 

 

(15,534

)

 

 

(54,300

)

 

 

(46,986

)

Gain on debt extinguishment, net

 

 

-

 

 

 

29,600

 

 

 

-

 

 

 

24,832

 

Gain on derecognition of property

 

 

7,006

 

 

 

-

 

 

 

7,006

 

 

 

-

 

Impairment of development land parcel

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,464

)

Total expenses

 

 

(90,429

)

 

 

(59,360

)

 

 

(269,643

)

 

 

(255,029

)

(Loss) income before equity in (loss) income of partnerships, gain on sales of real estate by equity method investee, (loss) gain on sales of real estate, net, and gain (loss) on sales of interests in non operating real estate

 

 

(26,240

)

 

 

22,014

 

 

 

(74,442

)

 

 

(6,960

)

Equity in (loss) income of partnerships

 

 

(3,259

)

 

 

1,531

 

 

 

(2,798

)

 

 

6,136

 

Gain on sales of real estate by equity method investee

 

 

-

 

 

 

-

 

 

 

-

 

 

 

553

 

(Loss) gain on sales of real estate, net

 

 

(94

)

 

 

1,171

 

 

 

11,169

 

 

 

2,684

 

Gain (loss) on sales of interests in non operating real estate

 

 

16

 

 

 

-

 

 

 

(174

)

 

 

-

 

Net (loss) income

 

 

(29,577

)

 

 

24,716

 

 

 

(66,245

)

 

 

2,413

 

Less: net loss (income) attributable to noncontrolling interest

 

 

734

 

 

 

(454

)

 

 

1,996

 

 

 

1,563

 

Net (loss) income attributable to PREIT

 

 

(28,843

)

 

 

24,262

 

 

 

(64,249

)

 

 

3,976

 

Less: preferred share dividends

 

 

(6,843

)

 

 

(6,843

)

 

 

(20,531

)

 

 

(20,531

)

Net (loss) income attributable to PREIT common shareholders

 

$

(35,686

)

 

$

17,419

 

 

$

(84,780

)

 

$

(16,555

)

 

See accompanying notes to the unaudited consolidated financial statements.

2


Table of Contents

 

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)

(Unaudited)

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

(in thousands, except per share amounts)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net (loss) income

 

$

(29,577

)

 

$

24,716

 

 

$

(66,245

)

 

$

2,413

 

Noncontrolling interest

 

 

734

 

 

 

(454

)

 

 

1,996

 

 

 

1,563

 

Cumulative preferred share dividends

 

 

(6,843

)

 

 

(6,843

)

 

 

(20,531

)

 

 

(20,531

)

Dividends on unvested restricted shares

 

 

 

 

 

(222

)

 

 

(363

)

 

 

(663

)

Net (loss) income used to calculate (loss) income per share—basic and diluted

 

$

(35,686

)

 

$

17,197

 

 

$

(85,143

)

 

$

(17,218

)

Basic and diluted (loss) income per share:

 

$

(0.46

)

 

$

0.22

 

 

$

(1.10

)

 

$

(0.23

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands of shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding—basic

 

 

77,401

 

 

 

76,492

 

 

 

77,149

 

 

 

74,771

 

Effect of common share equivalents(1)

 

 

 

 

 

332

 

 

 

 

 

 

 

Weighted average shares outstanding—diluted

 

 

77,401

 

 

 

76,824

 

 

 

77,149

 

 

 

74,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The Company had net losses used to calculate earnings per share for the three months ended September 30, 2020 and the nine months ended September 30, 2020 and 2019.  Therefore, the effects of common share equivalents of 357 for the three months ended September 30, 2020 and, 411 and 375 for the nine months ended September 30, 2020 and 2019, respectively, are excluded from the calculation of diluted loss per share for these periods because they would be antidilutive.

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the unaudited consolidated financial statements.

3


Table of Contents

 

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

(in thousands of dollars)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(29,577

)

 

$

24,716

 

 

$

(66,245

)

 

$

2,413

 

Unrealized gain (loss) on derivatives

 

 

4,053

 

 

 

(3,607

)

 

 

(15,750

)

 

 

(21,838

)

Amortization of settled swaps

 

 

3

 

 

 

3

 

 

 

73

 

 

 

82

 

Total comprehensive (loss) income

 

 

(25,521

)

 

 

21,112

 

 

 

(81,922

)

 

 

(19,343

)

Less: comprehensive loss (income) attributable to noncontrolling interest

 

 

138

 

 

 

(363

)

 

 

2,401

 

 

 

2,524

 

Comprehensive (loss) income attributable to PREIT

 

$

(25,383

)

 

$

20,749

 

 

$

(79,521

)

 

$

(16,819

)

 

See accompanying notes to the unaudited consolidated financial statements.

4


Table of Contents

 

PENNSYLVANIA REAL ESTATE INVESTMENT TRUST

CONSOLIDATED STATEMENTS OF EQUITY

Three and Nine Months Ended

September 30, 2020 and 2019

(Unaudited)

 

 

 

 

 

 

 

PREIT Shareholders

 

 

 

 

 

 

 

 

 

 

 

Preferred Shares $.01 par

 

 

Shares of

Beneficial

 

 

Capital

Contributed

 

 

Accumulated

Other

 

 

Distributions

 

 

Non-

 

(in thousands of dollars, except per share amounts)

 

Total

Equity

 

 

Series

B

 

 

Series

C

 

 

Series

D

 

 

Interest,

$1.00 Par

 

 

in Excess of

Par

 

 

Comprehensive

(Loss) Income

 

 

in Excess of

Net Income

 

 

controlling

interest

 

Balance January 1, 2020

 

$

427,425

 

 

$

35

 

 

$

69

 

 

$

50

 

 

$

77,550

 

 

$

1,766,883

 

 

$

(12,556

)

 

$

(1,408,352

)

 

$

3,746

 

Net loss

 

 

(13,549

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,033

)

 

 

(516

)

Other comprehensive loss

 

 

(19,746

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19,240

)

 

 

 

 

 

(506

)

Shares issued under employee compensation

   plans, net of shares retired

 

 

(42

)

 

 

 

 

 

 

 

 

 

 

 

1,290

 

 

 

(1,332

)

 

 

 

 

 

 

 

 

 

Amortization of deferred compensation

 

 

1,624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,624