<PAGE>
- -------------------------------------------------------------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
[X] Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange
Act Of 1934
For the quarterly period ended February 29, 1996
-------------------------------------------
[ ] 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 1-6300
--------
Pennsylvania Real Estate Investment Trust
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 23-6216339
- ----------------------------------- -------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
455 Pennsylvania Avenue,
Suite 135, Ft. Washington, PA 19034
- --------------------------------------------- ---------------------------------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (215) 542-9250
-----------------------
N/A
- --------------------------------------------------------------------------------
(Former name, former address and former
fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of 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 last 90 days. Yes |X| No |_|
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report (applicable
only to corporate issuers).
Shares of beneficial interest outstanding at April 1, 1996: 8,676,098
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This report includes a total of 12 pages.
- --------------------------------------------------------------------------------
<PAGE>
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
CONTENTS
Page
----
Part I. Financial Information
Financial Statements (Unaudited):
Consolidated Balance Sheets--February 29, 1996
and August 31, 1995 (Audited) 1-2
Consolidated Statements of Income--Three and Six Months
Ended February 29, 1996 and February 28, 1995 3
Consolidated Statements of Cash Flows--Six Months Ended
February 29, 1996 and February 28, 1995 4
Notes to Unaudited Consolidated Financial Statements 5-7
Management's Discussion and Analysis of Financial
Condition and Results of Operations 8-10
Part II. Other Information
Item 4 (Items 1 through 3 not applicable) 11
Item 5 11
Item 6 11
Signatures 12
<PAGE>
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
February 29, August 31,
1996 1995
----------------- ------------------
(Unaudited)
<S> <C> <C>
INVESTMENTS IN REAL ESTATE, at cost:
Apartment buildings $ 156,504,000 $ 154,907,000
Industrial properties 5,078,000 5,078,000
Shopping centers and retail stores 30,512,000 32,354,000
------------------ ------------------
Total investments in real estate 192,094,000 192,339,000
Less- Accumulated depreciation 40,876,000 38,828,000
------------------ ------------------
151,218,000 153,511,000
LAND HELD FOR SALE 3,590,000 3,590,000
INVESTMENTS IN PARTNERSHIPS AND
JOINT VENTURES, at equity (Note 2) 16,096,000 17,439,000
ADVANCES TO PARTNERSHIPS AND
JOINT VENTURES, at equity (Note 2) 2,522,000 2,414,000
NOTES RECEIVABLE 1,649,000 1,649,000
------------------ ------------------
175,075,000 178,603,000
LESS- Allowance for possible losses 2,512,000 2,775,000
------------------ ------------------
172,563,000 175,828,000
OTHER ASSETS:
Cash and cash equivalents 1,621,000 1,098,000
Rents and sundry receivables 383,000 346,000
Deferred costs, prepaid real estate taxes and expenses, net 5,345,000 4,064,000
------------------ ------------------
$ 179,912,000 $ 181,336,000
================== ==================
</TABLE>
The accompanying notes are an integral part of these statements.
1
<PAGE>
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND BENEFICIARIES' EQUITY
<TABLE>
<CAPTION>
February 29, August 31,
1996 1995
------------------ ------------------
(Unaudited)
<S> <C> <C>
LIABILITIES:
Mortgage notes payable $ 85,383,000 $ 78,198,000
Bank loans payable 39,220,000 44,320,000
Tenants' deposits and deferred rents 1,226,000 1,352,000
Accrued pension and retirement benefits 1,120,000 1,213,000
Accrued expenses and other liabilities 3,605,000 3,954,000
------------------ ------------------
130,554,000 129,037,000
------------------ ------------------
MINORITY INTEREST IN CONSOLIDATED PARTNERSHIP
(Note 2) 561,000 528,000
------------------ ------------------
COMMITMENTS AND CONTINGENCIES (Note 5)
BENEFICIARIES' EQUITY (Note 3):
Shares of beneficial interest, $1 par; authorized,
unlimited; issued and outstanding 8,676,098
shares at February 29, 1996 and August 31, 1995 8,676,000 8,676,000
Capital contributed in excess of par 53,133,000 53,133,000
Distributions in excess of net income (13,012,000) (10,038,000)
------------------- -------------------
48,797,000 51,771,000
------------------ ------------------
$ 179,912,000 $ 181,336,000
================== ==================
</TABLE>
The accompanying notes are an integral part of these statements.
2
<PAGE>
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------------------------------------
February 29, February 28, February 29, February 28,
1996 1995 1996 1995
------------ ------------ ------------ ------------
REVENUES:
<S> <C> <C> <C> <C>
Gross revenues from real estate $ 9,620,000 $ 9,503,000 $ 19,257,000 $ 18,016,000
Interest and other income 47,000 45,000 85,000 88,000
------------- ------------- ------------- -------------
9,667,000 9,548,000 19,342,000 18,104,000
------------- ------------- ------------- -------------
EXPENSES:
Property operating expenses 4,132,000 3,834,000 7,913,000 7,204,000
Depreciation and amortization 1,404,000 1,343,000 2,856,000 2,497,000
General and administrative expenses 752,000 774,000 1,423,000 1,445,000
Mortgage and bank loan interest 2,441,000 2,253,000 4,858,000 4,013,000
------------- ------------- ------------- -------------
8,729,000 8,204,000 17,050,000 15,159,000
------------- ------------- ------------- -------------
Income before minority interest, equity in
income of partnerships and joint
ventures and gain on sale of interest in
real estate 938,000 1,344,000 2,292,000 2,945,000
MINORITY INTEREST (66,000) (68,000) (142,000) (129,000)
EQUITY IN INCOME OF PARTNERSHIPS
AND JOINT VENTURES (Note 2) 1,464,000 1,437,000 3,031,000 3,242,000
GAIN ON SALE OF INTEREST IN
REAL ESTATE -- 119,000 -- 119,000
------------- ------------- ------------- -------------
NET INCOME $ 2,336,000 $ 2,832,000 $ 5,181,000 $ 6,177,000
============= ============= ============= =============
NET INCOME PER SHARE $ 0.27 $ 0.33 $ 0.60 $ 0.71
============ ============ ============ ============
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 8,676,098 8,669,848 8,676,098 8,669,848
============= ============= ============= =============
</TABLE>
The accompanying notes are an integral part of these statements.
3
<PAGE>
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Six Months Ended
-----------------------------------------
February 29, February 28,
1996 1995
----------------- -----------------
(Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 5,181,000 $ 6,177,000
Adjustments to reconcile net income to
net cash provided by operating activities-
Minority interest in income of
consolidated partnership 142,000 129,000
Depreciation and amortization 2,856,000 2,497,000
Gain on sale of interest in real estate -- (119,000)
Decrease in provision for losses on investments (263,000) (194,000)
Change in assets and liabilities-
Rents and sundry receivables (37,000) (82,000)
Deferred costs, prepaid real estate taxes and expenses (745,000) (752,000)
Accrued pension and retirement benefits (93,000) 32,000
Accrued expenses and other liabilities (325,000) 190,000
Tenants' deposits and deferred rents (126,000) 60,000
----------------- -----------------
Net cash provided by operating activities 6,590,000 7,938,000
----------------- -----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Investments in wholly owned real estate (1,618,000) (35,358,000)
Investments in partnerships and joint ventures (153,000) (164,000)
Increase in advances to partnerships and joint ventures (107,000) (475,000)
Cash distributions from (contributions to) partnerships and joint ventures in
excess of equity in income 1,652,000 (11,000)
Cash distributions to minority partners (109,000) (13,000)
----------------- -----------------
Net cash used in investing activities (335,000) (36,021,000)
----------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal installments on mortgage notes payable (572,000) (359,000)
Proceeds from bank loans payable -- 36,177,000
Repayment of bank loans payable (5,100,000) --
Increase in mortgage notes payable 8,800,000 --
Payment of deferred financing costs (704,000) --
Distributions paid to beneficiaries (8,156,000) (8,150,000)
----------------- -----------------
Net cash provided by (used in) financing activities (5,732,000) 27,668,000
----------------- -----------------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 523,000 (415,000)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,099,000 2,152,000
----------------- -----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,622,000 $ 1,737,000
================= =================
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE>
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED FEBRUARY 29, 1996 AND FEBRUARY 28, 1995
1. BASIS OF PRESENTATION:
The consolidated financial statements have been prepared by the Registrant,
without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations, although the Registrant believes that the disclosures are adequate
to make the information presented not misleading. It is suggested that these
consolidated financial statements be read in conjunction with the audited
financial statements and the notes thereto included in the Registrant's latest
annual report on Form 10-K. In the opinion of the Registrant, all adjustments
and eliminations, consisting only of normal recurring adjustments, necessary to
present fairly the consolidated financial position of the Registrant as of
February 29, 1996 and August 31, 1995 and the consolidated results of its
operations for the three and six months ended February 29, 1996 and February 28,
1995 and cash flows for the six months ended February 29, 1996 and February 28,
1995, have been included. The results of operations for such interim periods are
not necessarily indicative of the results for the full year.
2. INVESTMENTS IN PARTNERSHIPS AND JOINT VENTURES:
The following presents summarized information as to the Registrant's equity in
the assets and liabilities of the partnerships and joint ventures at February
29, 1996 and August 31, 1995, and the Registrant's equity in income for the
three and six months ended February 29, 1996 and February 28, 1995:
<TABLE>
<CAPTION>
February 29, August 31,
ASSETS 1996 1995
------ ------------------ -----------------
(Unaudited)
<S> <C> <C>
Investments in real estate, at cost:
Apartment buildings $ 104,190,000 $ 103,683,000
Industrial property 1,250,000 1,250,000
Shopping centers and retail stores 135,590,000 132,597,000
Land 4,445,000 4,445,000
------------------ ------------------
Total investments in real estate 245,475,000 241,975,000
Less- Accumulated depreciation 73,904,000 69,918,000
------------------ ------------------
171,571,000 172,057,000
Cash and cash equivalents 6,741,000 7,303,000
Other assets 4,257,000 4,544,000
------------------ ------------------
Total assets 182,569,000 183,904,000
------------------ ------------------
LIABILITIES AND EQUITY
Mortgage notes payable 137,411,000 136,004,000
Bank loans payable 8,322,000 8,277,000
Due to the Trust 2,514,000 2,414,000
Other liabilities 4,703,000 4,571,000
------------------ ------------------
Total liabilities 152,950,000 151,266,000
------------------ ------------------
Net equity 29,619,000 32,638,000
Partners' share (13,523,000) (15,199,000)
------------------ ------------------
Investments in partnerships and joint ventures $ 16,096,000 $ 17,439,000
================== ==================
</TABLE>
5
<PAGE>
EQUITY IN INCOME OF PARTNERSHIPS AND JOINT VENTURES
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
-----------------------------------------------------------------------
February 29, February 28, February 29, February 28,
1996 1995 1996 1995
--------------- --------------- --------------- ---------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Gross revenues from real estate $ 13,768,000 $ 13,002,000 $ 26,834,000 $ 26,067,000
--------------- --------------- --------------- ---------------
Expenses:
Property operating expenses 6,038,000 5,373,000 11,031,000 10,252,000
Mortgage and bank loan interest expense 3,007,000 3,087,000 6,194,000 6,092,000
Depreciation and amortization 1,760,000 1,636,000 3,464,000 3,196,000
--------------- --------------- --------------- ---------------
10,805,000 10,096,000 20,689,000 19,540,000
--------------- --------------- --------------- ---------------
2,963,000 2,906,000 6,145,000 6,527,000
Partners' share (1,499,000) (1,469,000) (3,114,000) (3,285,000)
--------------- --------------- --------------- ---------------
Equity in income of partnerships and joint
ventures $ 1,464,000 $ 1,437,000 $ 3,031,000 $ 3,242,000
=============== =============== =============== ===============
</TABLE>
One partnership in which the Registrant is a general partner, and has control as
provided in the partnership agreement, has been consolidated for financial
statement presentation. All of the assets and liabilities are included in the
consolidated financial statements at 100%. The minority partner's interest is
35%.
3. DISTRIBUTIONS:
The per share amount declared at the date of this report and the per share
amount declared in the comparable period in fiscal 1995 for distribution are as
follows:
Amount
Per
Date Declared Record Date Payment Date Share
------------- ----------- ------------ -----
April 10, 1996 April 30, 1996 May 15, 1996 $ .47
March 22, 1995 April 28, 1995 May 16, 1995 $ .47
4. CASH FLOW INFORMATION:
Cash paid for interest was $2,165,000 and $2,145,000 for the three months ended
February 29, 1996 and February 28, 1995, and $4,620,000 and $3,774,000 for the
six months ended February 29, 1996 and February 28, 1995, respectively.
6
<PAGE>
5. COMMITMENTS AND CONTINGENCIES:
Environmental matters have arisen at certain properties in which the Registrant
has an interest for which reserves have previously been established. During the
six months ended February 29, 1996, the Registrant advanced funds totaling
$30,000 which were recorded against the previously established reserves.
The Registrant has been named as a defendant in a suit brought by persons and
their affiliates who are partners of the Registrant in three partnerships. The
Registrant is vigorously defending the suit and has denied the plaintiffs'
allegations. The Registrant also believes that it has viable claims against
certain of the same partners (or their affiliates) which it is asserting. As the
pleadings are not yet closed and discovery is still in the preliminary stages,
it is not possible to judge the ultimate outcome of these suits at this time.
However, Management does not believe that resolution of these matters will have
a material adverse effect on the Registrant's financial condition or results of
operations.
7
<PAGE>
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
In February 1996, a partnership in which the Registrant has a 40% interest
completed the refinancing of its 312-unit apartment community in Altamonte
Springs, Florida, with the placement of a $5,700,000 10-year mortgage maturing
in February 2006. The interest rate is 7.5% and amortization is based on a
25-year schedule. The excess proceeds of the refinancing of $777,000 were
distributed to the partners with 60% distributed to the Registrant.
In December 1995, a partnership in which the Registrant has a 50% interest reset
the interest rate on the $16,150,000 mortgage secured by its 264 unit apartment
community in Coral Springs, Florida. The interest rate for the remaining five
years of the mortgage term was reset to 8.235% from 9.875%. The revised annual
debt service is $1,526,000, including amortization based on a 25-year schedule,
compared with $1,594,000 on an interest-only basis.
Funds from operations (FFO) decreased by $530,000 for the six months ended
February 29, 1996, as compared to the same period in 1995. The decrease in FFO
resulted from lower net income in 1996 as compared to the 1995 period as
discussed below, partially offset by increased depreciation expense on real
estate assets. Funds from operations do not represent cash generated from
operations as defined by generally accepted accounting principles ("GAAP") and
is not necessarily indicative of cash available to fund cash needs.
<TABLE>
<CAPTION>
Six Months Ended
--------------------------------------
February 29, February 28,
Funds from Operations(1) 1996 1995
- -------------------------------------------------------------- ------------------ ------------------
<S> <C> <C>
Net income $ 5,181,000 $ 6,177,000
Less- Gain on sale of real estate -- (119,000)
------------------ ------------------
5,181,000 6,058,000
Plus:
Depreciation and amortization-
Wholly owned and consolidated partnerships (2) 2,728,000 2,379,000
Unconsolidated partnerships and joint ventures 1,711,000 1,583,000
Less:
Depreciation of non-real estate assets (100,000) (81,000)
Amortization of deferred financing costs (166,000) (55,000)
------------------ ------------------
Funds from operations $ 9,354,000 $ 9,884,000
================== ==================
</TABLE>
(1) Effective fiscal year 1996, the Trust has implemented a revised definition
of funds from operations (FFO) based on recommendations recently adopted by
the National Association of Real Estate Investment Trusts, and has restated
FFO for 1995 (with a downward adjustment for depreciation of non-real
estate assets and amortization of deferred financing costs) to conform with
the revised definition. FFO is defined as income before gains (losses) on
investments and extraordinary items (computed in accordance with generally
accepted accounting principles) plus real estate depreciation and similar
adjustments for unconsolidated joint ventures and less non real estate
depreciation and amortization of financing costs. FFO is not necessarily
indicative of cash available to fund cash needs.
(2) Net of minority interest of $128,000 in 1996 and $118,000 in 1995.
8
<PAGE>
Net cash provided by operating activities decreased to $6,590,000 for the six
months ended February 29, 1996 as compared to $7,938,000 for the same period
last year. Operating cash flow was lower as a result of decreased net income as
discussed below and the timing of certain operating expense disbursements,
partially offset by increased depreciation and amortization expense from the
Boca Palms acquisition.
Net cash used in investing activities was $335,000 in the six months ended
February 29, 1996 as compared to $36,021,000 in the same period last year. For
the six months ended February 28, 1995, the Registrant invested $34,000,000 for
the acquisition of Boca Palms Apartments.
Net cash used in financing activities was $5,732,000 for the six months ended
February 29, 1996 as compared to net cash provided by financing activities of
$27,668,000 in the same period last year. Financing activities in 1996 include a
mortgage note payable on Shenandoah Village Apartments of $8,800,000, a
reduction in bank loans payable of $5,100,000 and $8,156,000 of distributions
paid to beneficiaries. Financing activities in 1995 include bank borrowings used
to finance the Boca Palms acquisition and $8,150,000 of distributions paid to
beneficiaries.
Results of Operations
Three-Month Period Ended February 29, 1996 and February 28, 1995
Gross revenues from real estate increased by $117,000 to $9,620,000 for the
three month period ended February 29, 1996 as compared to the same period in the
prior year.
Operating expenses increased by $298,000 to $4,132,000. The increase is due
primarily to $150,000 of additional operating expenses as a result of the harsh
winter weather in the mid-Atlantic region this year.
Mortgage and bank interest increased by $188,000 to $2,441,000 as a result of
increased bank borrowings in 1996 as compared to the same quarter last year.
Equity in income of partnerships and joint ventures decreased by $27,000 to
$1,464,000, primarily as a result of $100,000 of additional expenses resulting
from the harsh winter weather discussed earlier.
Operating results for the quarter ended February 28, 1995 included a $119,000
gain from the sale of an interest in real estate.
Net income for the quarter ended February 29, 1996 decreased to $2,336,000 from
$2,832,000 as reported in the comparable period in the prior year.
9
<PAGE>
Six-Month Periods Ended February 29, 1996 and February 28, 1995
Gross revenues from real estate increased by $1,241,000 to $19,257,000 for the
six month period ended February 29, 1996 as compared to the same period in the
prior year. The increase is due primarily to an increase in revenues of $941,000
from the Boca Palms Apartments, which were acquired in November 1994. Revenues
from properties owned during both periods increased $300,000.
Operating expenses increased by $709,000 to $7,913,000. The increase is due
primarily to $451,000 of increased expenses from the Boca Palms Apartments and
approximately $150,000 of additional operating expenses as a result of the harsh
winter weather in the mid-Atlantic region this year.
Depreciation and amortization increased by $359,000 to $2,856,000 as a result of
the Boca Palms acquisition and ongoing capital expenditures.
Interest expense increased by $845,000 to $4,858,000 as a result of increased
borrowings to finance the Boca Palms acquisition and for general corporate
purposes.
For the six months ended February 29, 1996 and February 28, 1995, $263,000 and
$194,000, respectively, of carrying costs for land held for sale were charged
against the allowance for investment losses. Management believes that the
allowance is adequate at this time.
Equity in income of partnerships and joint ventures decreased by $211,000 to
$3,031,000, primarily as a result of a nonrecurring lease termination fee
received from a shopping center tenant in the first quarter of fiscal year 1995.
The Trust's share of partnership and joint venture income in 1996 was also
reduced by approximately $100,000 as compared to the prior year due to higher
operating expenses resulting from the harsh winter weather discussed earlier.
Operating results for the six month period ended February 28, 1995 included a
$119,000 gain from the sale of an interest in real estate.
Net income for the six month period ended February 29, 1996 decreased to
$5,181,000 from $6,177,000 for the comparable period in 1995.
10
<PAGE>
Part II. Other Information
Item 4. Submission of Matters to a Vote of Security Holders
The 1995 Annual Meeting of Holders of Certificates of Beneficial Interest of the
Registrant was held on December 14, 1995.
At such meeting, Messrs. Sylvan M. Cohen, Lee H. Javitch and Jonathan B. Weller
were reelected to the Board of Trustees of the Registrant for terms expiring at
the 1998 Annual Meeting. In such election, 7,064,538 votes were cast for Mr.
Cohen, 7,064,741 votes were cast for Mr. Javitch and 7,039,275 votes were cast
for Mr. Weller. Under the Trust Agreement for the Registrant, votes cannot be
cast against a candidate. Proxies filed at the 1995 Annual Meeting by the
holders of 97,771 shares withheld authority to vote for Mr. Cohen, those filed
by the holders of 97,568 shares withheld authority to vote for Mr. Javitch and
those filed by the holders of 123,034 shares withheld authority to vote for Mr.
Weller. No "broker non-votes" were received at the 1995 Annual Meeting.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - (27.)--Financial Data Schedule (included in electronic
filing format)
(b) Reports on Form 8-K - None
11
<PAGE>
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
SIGNATURE OF REGISTRANT
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned on its behalf by the undersigned thereunto duly authorized.
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
Registrant
By /s/ Jonathan B. Weller
------------------------------------
Jonathan B. Weller,
President and Chief Operating Officer
By /s/ Dante J. Massimini
------------------------------------
Dante J. Massimini,
Senior Vice-President and Treasurer
Date: April 12, 1996
12
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000077281
<NAME> PREIT
<MULTIPLIER> 1,000
<CURRENCY> U.S DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-START> SEP-01-1995
<PERIOD-END> FEB-29-1996
<EXCHANGE-RATE> 1.000
<CASH> 1,621,000
<SECURITIES> 0
<RECEIVABLES> 25,995,000
<ALLOWANCES> 2,512,000
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 195,684,000
<DEPRECIATION> 40,876,000
<TOTAL-ASSETS> 179,912,000
<CURRENT-LIABILITIES> 6,512,000
<BONDS> 124,603,000
0
0
<COMMON> 8,676,000
<OTHER-SE> 40,121,000
<TOTAL-LIABILITY-AND-EQUITY> 179,912,000
<SALES> 19,257,000
<TOTAL-REVENUES> 22,231,000
<CGS> 0
<TOTAL-COSTS> 12,192,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,858,000
<INCOME-PRETAX> 5,181,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 5,181,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,181,000
<EPS-PRIMARY> $.60
<EPS-DILUTED> $.60
</TABLE>
