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PEI Pennsylvania Real Estate Investment Trust

Pennsylvania Real Estate Investment Trust is a publicly traded real estate investment trust that invests in shopping centers mostly in the Mid-Atlantic states. The company was founded by Sylvan M. Cohen in 1960 as one of the first equity REITs. In 1997, the company acquired the Rubin Organization for $260 million. In 2001, founder Sylvan Cohen died. In 2003, the company acquired 6 shopping malls from The Rouse Company. The company also acquired Crown American. In 2006, the company acquired Woodland Mall for $177.4 million. In 2012, Joseph Coradino was named chief executive officer of the company.

Company profile

PEI stock data

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Calendar

16 Mar 21
21 Apr 21
31 Dec 21
Quarter (USD)
Dec 20 Sep 20 Jun 20 Mar 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 51.23M 51.23M 51.23M 51.23M 51.23M 51.23M
Cash burn (monthly) (positive/no burn) (positive/no burn) 16.56M 10.34M (positive/no burn) (positive/no burn)
Cash used (since last report) n/a n/a 61.28M 38.28M n/a n/a
Cash remaining n/a n/a -10.05M 12.95M n/a n/a
Runway (months of cash) n/a n/a -0.6 1.3 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
31 Mar 21 Lisa M. Most Restricted Share Units Shares of Beneficial Interest Grant Aquire A No No 0 100,171 0 100,171
31 Mar 21 Joseph J. Aristone Restricted Share Units Shares of Beneficial Interest Grant Aquire A No No 0 103,836 0 103,836
31 Mar 21 Mario C. Jr. Ventresca Restricted Share Units Shares of Beneficial Interest Grant Aquire A No No 0 209,504 0 209,504
31 Mar 21 Andrew M. Ioannou Restricted Share Units Shares of Beneficial Interest Grant Aquire A No No 0 103,836 0 103,836
31 Mar 21 Sathana Semonsky Restricted Share Units Shares of Beneficial Interest Grant Aquire A No No 0 29,686 0 29,686

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

11.7% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 64 86 -25.6%
Opened positions 12 14 -14.3%
Closed positions 34 53 -35.8%
Increased positions 14 13 +7.7%
Reduced positions 20 39 -48.7%
13F shares
Current Prev Q Change
Total value 24.08M 23.57M +2.2%
Total shares 9.24M 21.59M -57.2%
Total puts 305.9K 174.6K +75.2%
Total calls 137.7K 24.1K +471.4%
Total put/call ratio 2.2 7.2 -69.3%
Largest owners
Shares Value Change
Charles Schwab Investment Management 1.91M $1.91M +42.6%
Vanguard 1.41M $1.41M -75.8%
Millennium Management 684.26K $684K -53.2%
Squarepoint Ops 660.44K $660K +18.7%
Lido Advisors 510K $510K +70.0%
Susquehanna International 432.42K $432K -62.9%
Shell Asset Management 376.31K $376K +101.5%
Veritable 344.5K $345K -12.7%
Gratia Capital 339.88K $340K NEW
IVZ Invesco 335.09K $335K -4.1%
Largest transactions
Shares Bought/sold Change
Vanguard 1.41M -4.41M -75.8%
BLK Blackrock 233.94K -1.21M -83.8%
Renaissance Technologies 0 -857.42K EXIT
HRT Financial 0 -801.78K EXIT
GS Goldman Sachs 0 -785.44K EXIT
Millennium Management 684.26K -778.25K -53.2%
Susquehanna International 432.42K -733.29K -62.9%
Dimensional Fund Advisors 0 -668.76K EXIT
Alps Advisors 0 -647.91K EXIT
Charles Schwab Investment Management 1.91M +570.64K +42.6%

Financial report summary

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Risks
  • ITEM 1A. RISK FACTORS.
  • RISKS RELATED TO OUR BUSINESS AND OUR PROPERTIES
  • The COVID-19 global pandemic and the public health and governmental response have adversely affected, and will likely continue to adversely affect, our business, financial condition, liquidity and operating results. The extent and duration of such effects are uncertain, continuously changing and difficult to predict. Additionally, the future outbreak of any other highly infectious or contagious diseases may materially and adversely affect our business, financial condition, liquidity and operating results.
  • We emerged from bankruptcy on December 10, 2020, which could adversely affect our business and relationships.
  • Changes in the retail industry, particularly among anchor tenant retailers, could adversely affect our results of operations and financial condition.
  • Approximately 36% of our non-anchor leases expire in 2021 or 2022 or are in holdover status, and if we are unable to renew these leases or re-lease the space covered by these leases on equivalent terms, we might experience reduced occupancy and traffic at our properties and lower rental revenue, net operating income and cash flows.
  • We have identified a material weakness in our internal control over financial reporting which could, if not remediated, adversely affect our ability to report our financial condition and results of operations in a timely and accurate manner, our liquidity and financial condition, and our stock price.
  • We might be unable to effectively manage any redevelopment and development projects involving a mix of uses, or other unique aspects, such as a project located in a city rather than a suburb, which could affect our financial condition and results of operations.
  • Expense reimbursements are relatively low and might continue to be relatively low. Also, operating expenses may increase in the future, reducing our cash flows.
  • The valuation and accounting treatment of certain long-lived assets, such as real estate, or of intangible assets, such as goodwill, could result in future asset impairments, which would be recorded as operating losses.
  • Conditions in the U.S. economy might adversely affect our cash flows from operations.
  • Our retail properties are concentrated in the Eastern United States, particularly in the Mid-Atlantic region, and adverse market conditions in that region might affect the ability of our tenants to make lease payments and the interest of prospective tenants to enter into leases, which might reduce the amount of revenue generated by our properties.
  • We have invested and may in the future invest in partnerships with third parties to acquire, develop or redevelop properties, and we might not control the management, redevelopment or disposition of these properties, or we might be exposed to other risks.
  • Our business could be harmed if members of our corporate management team terminate their employment with us or otherwise are unable to continue in their current capacity or we are unable to attract and retain talented employees.
  • We might incur costs to comply with environmental laws, which could have an adverse effect on our results of operations.
  • Inflation may adversely affect our financial condition and results of operations.
  • We face risks associated with, and have experienced, security breaches through cyber attacks. A significant privacy breach or IT system disruption could adversely affect our business and we might be required to increase our spending on data and system security, which could adversely affect our financial condition.
  • RISKS RELATED TO THE REAL ESTATE INDUSTRY
  • Online shopping and other uses of technology could affect the business models and viability of retailers, which could, in turn, affect their demand for retail real estate.
  • We are subject to risks that affect the retail real estate environment generally.
  • The retail real estate industry is highly competitive, and this competition could harm our ability to operate profitably.
  • Acts of violence or war or other terrorist activity, including at our properties, could adversely affect our financial condition and results of operations.
  • Social unrest and acts of vandalism or violence could adversely affect our business operations.
  • The illiquidity of real estate investments might delay or prevent us from selling properties that we determine no longer meet the strategic and financial criteria we apply and could significantly affect our ability to respond in a timely manner to adverse changes in the performance of our properties and harm our financial condition.
  • RISKS RELATED TO OUR INDEBTEDNESS AND OUR FINANCING
  • We have substantial debt and stated value of preferred shares outstanding, which could adversely affect our overall financial health and our operating flexibility. We require significant cash flows to satisfy our debt service. These obligations may prevent us from using our cash flows for other purposes. If we are unable to satisfy these obligations, we might default on our debt and our financial condition and results of operations would be adversely affected.
  • The covenants in our Credit Agreements limit our ability to take certain actions, which could adversely affect our business and our ability to raise capital.
  • If we are unable to comply with the covenants in our Credit Agreements, we might be adversely affected.
  • Secured indebtedness exposes us to the possibility of foreclosure, which could result in the loss of our investment in certain of our subsidiaries or in a property or group of properties or other assets subject to indebtedness.
  • We might not be able to refinance our existing obligations or obtain the capital required to finance our activities.
  • Our hedging arrangements might not be successful in limiting our risk exposure, and we might incur expenses in connection with these arrangements or their termination that could harm our results of operations or financial condition.
  • We are subject to risks associated with increases in interest rates, including in connection with our variable interest rate debt.
  • Our actual financial results after emergence from bankruptcy may not be comparable to our historical financial information as a result of the implementation of the Plan and the transactions contemplated thereby.
  • RISKS RELATING TO OUR ORGANIZATION AND STRUCTURE
  • Our organizational documents contain provisions that might discourage a takeover of us and depress our share price.
  • Limited partners of PREIT Associates may vote on certain fundamental changes we propose, which could inhibit a change in control that might otherwise result in a premium to our shareholders.
  • We have, in the past, and might again, in the future, enter into tax protection agreements for the benefit of certain former property owners, including some limited partners of PREIT Associates, that might affect our ability to sell or refinance some of our properties that we might otherwise want to sell or refinance, which could harm our financial condition.
  • RISKS RELATING TO OUR SECURITIES
  • We could face adverse consequences as a result of the actions of activist shareholders.
  • Holders of our common shares might have their interest in us diluted by actions we take in the future.
  • Many factors, including changes in interest rates and the negative perceptions of the retail sector generally, can have an adverse effect on the market value of our securities.
  • We do not anticipate paying dividends on our shares in the foreseeable future.
  • Individual taxpayers might perceive REIT securities as less desirable relative to the securities of other corporations because of the lower tax rate on certain dividends from such corporations, to the extent we pay dividends in the future, which might have an adverse effect on the market value of our securities.
  • Our common shares could be delisted from the NYSE if we fail to meet applicable continued listing requirements, which could have materially adverse effects on our business.
  • Any additional issuances of preferred shares in the future might adversely affect the earnings per share available to common shareholders and amounts available to common shareholders for any future payments of dividends.
  • If we were to fail to qualify as a REIT, our shareholders would be adversely affected.
  • We might be unable to comply with the strict income distribution requirements applicable to REITs, or compliance with such requirements could adversely affect our financial condition or cause us to forego otherwise attractive opportunities.
  • There is a risk of changes in the tax law applicable to REITs or our tenants.
  • We could face possible adverse federal, state and local tax audits and changes in state and local tax laws, which might result in an increase in our tax liability.
Management Discussion
  • Our net loss increased by $253.7 million to a net loss of $266.7 million for the year ended December 31, 2020 from a net loss of $13.0 million for the year ended December 31, 2019. The change in our 2020 results of operations was primarily due to (a) a loss on remeasurement of FDP's assets and an other than temporary impairment on our investment in FDP totaling $148.5 million; (b) a decrease in real estate revenue of $74.0 million due to the COVID-19 related closure of our properties for the majority of the second quarter, as well as rent concession requests from tenants for rent abatements; (c) a decrease in equity partnership income of $13.8 million due to COVID-19 related closures and rent concessions at our equity investees’ properties; (d) an increase in interest expense of $20.4 million driven by higher interest rates on our Credit Agreements and higher overall debt balances; and (e) a non-recurring gain on debt extinguishment recognized for the year ended December 31, 2019 of $24.9 million, which had a favorable impact on the prior year period; partially offset by: (a) a decrease in property operating expenses of $9.7 million related to ongoing impacts of COVID-19 since the second quarter of 2020; (b) a non-recurring gain on derecognition of property, which provided a benefit of $8.1 million in the current year period; and (c) a non-recurring gain on sales of real estate, which provided a benefit of $11.4 million in the current year period.
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