Pennsylvania Real Estate Investment Trus (PEI, Financial) filed Quarterly Report for the period ended 2010-03-31.
Pennsylvania Real Estate Investment Trus has a market cap of $667.8 million; its shares were traded at around $15.02 with a P/E ratio of 5.2 and P/S ratio of 1.4. The dividend yield of Pennsylvania Real Estate Investment Trus stocks is 4%. GuruFocus rated Pennsylvania Real Estate Investment Trus the business predictability rank of 3-star.PEI is in the portfolios of Stanley Druckenmiller of Duquesne Capital Management, LLC, First Pacific Advisors of First Pacific Advisors, LLC, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Base rent for the 2010 Same Store Properties increased by $2.2 million in the three months ended March 31, 2010 compared to the three months ended March 31, 2009. Base rent at Cherry Hill Mall, The Gallery at Market East and Plymouth Meeting Mall, three of our recently completed redevelopment projects, increased by $1.4 million, $0.7 million and $0.6 million, respectively, due to increased occupancy from newly opened tenants. Base rent at Monroe Retail Center, a development project that opened in October 2008, increased by $0.2 million due to increased occupancy from tenants that opened new stores. Partially offsetting these increases, base rent at Orlando Fashion Square and Exton Square Mall decreased by $0.4 million and $0.3 million, respectively, due to increased vacancy and rental concessions.
Operating expenses increased by $3.2 million, or 7%, in the three months ended March 31, 2010 compared to the three months ended March 31, 2009. Operating expenses increased $0.1 million from one property under development during 2009 that is now placed in service. Operating expenses from 2010 Same Store Properties increased by $3.1 million, primarily due to a $2.1 million increase in common area maintenance expense, a $0.5 million increase in real estate taxes, a $0.4 million increase in utility expense and a $0.1 million increase in other operating expenses.
Common area maintenance expenses increased by $2.1 million, primarily due to increases of $1.3 million in snow removal expense, $0.2 million in common area utility expense, $0.2 million in housekeeping expense and $0.2 million in loss prevention expense. Snow removal expenses at our properties located in Pennsylvania and New Jersey increased as a result of two significant snowstorms that affected the Mid-Atlantic states in February 2010. The increases in housekeeping expense and loss prevention expense were due primarily to stipulated annual contractual increases. Real estate tax expense increased by $0.5 million in the three months ended March 31, 2010 compared to the three months ended March 31, 2009, primarily due to higher tax rates in the jurisdictions where properties are located and increased property assessments at some of our properties.
Depreciation and amortization expense increased by $3.0 million, or 8%, in the three months ended March 31, 2010 compared to the three months ended March 31, 2009. Depreciation and amortization expense from 2010 Same Store Properties increased by $3.0 million, primarily due to a higher asset base resulting from capital improvements at our properties, particularly at properties where we have recently completed redevelopments and that are now placed in service. We placed assets with an aggregate basis of $219.8 million in service from March 31, 2009 to March 31, 2010. Depreciation and amortization increased $0.1 million from one property under development during 2009 that is now placed in service.
General and administrative expenses, abandoned project costs, income taxes and other expenses increased by $0.3 million, or 3%, for the three months ended March 31, 2010 compared to the three months ended March 31, 2009. This increase is primarily due to a $0.4 million increase in professional fees and a $0.3 million increase in other general and administrative expenses, offset by a $0.4 million decrease in compensation expense.
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Pennsylvania Real Estate Investment Trus has a market cap of $667.8 million; its shares were traded at around $15.02 with a P/E ratio of 5.2 and P/S ratio of 1.4. The dividend yield of Pennsylvania Real Estate Investment Trus stocks is 4%. GuruFocus rated Pennsylvania Real Estate Investment Trus the business predictability rank of 3-star.PEI is in the portfolios of Stanley Druckenmiller of Duquesne Capital Management, LLC, First Pacific Advisors of First Pacific Advisors, LLC, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Revenue increased by $4.3 million, or 4%, in the three months ended March 31, 2010 compared to the three months ended March 31, 2009. Real estate revenue increased $0.3 million from one property under development during 2009 that is now placed in service. Real estate revenue from properties that were owned for the entire period from January 1, 2009 to March 31, 2010 (2010 Same Store Properties) increased by $4.0 million, primarily due to increases of $2.2 million in base rents, which is comprised of minimum rent, straight line rent and rent from tenants that pay a percentage of sales in lieu of minimum rent, $1.4 million in lease terminations and $0.6 million in expense reimbursements. These increases were partially offset by a decrease of $0.3 million in other revenue. These changes in real estate revenue are explained below in further detail.Base rent for the 2010 Same Store Properties increased by $2.2 million in the three months ended March 31, 2010 compared to the three months ended March 31, 2009. Base rent at Cherry Hill Mall, The Gallery at Market East and Plymouth Meeting Mall, three of our recently completed redevelopment projects, increased by $1.4 million, $0.7 million and $0.6 million, respectively, due to increased occupancy from newly opened tenants. Base rent at Monroe Retail Center, a development project that opened in October 2008, increased by $0.2 million due to increased occupancy from tenants that opened new stores. Partially offsetting these increases, base rent at Orlando Fashion Square and Exton Square Mall decreased by $0.4 million and $0.3 million, respectively, due to increased vacancy and rental concessions.
Operating expenses increased by $3.2 million, or 7%, in the three months ended March 31, 2010 compared to the three months ended March 31, 2009. Operating expenses increased $0.1 million from one property under development during 2009 that is now placed in service. Operating expenses from 2010 Same Store Properties increased by $3.1 million, primarily due to a $2.1 million increase in common area maintenance expense, a $0.5 million increase in real estate taxes, a $0.4 million increase in utility expense and a $0.1 million increase in other operating expenses.
Common area maintenance expenses increased by $2.1 million, primarily due to increases of $1.3 million in snow removal expense, $0.2 million in common area utility expense, $0.2 million in housekeeping expense and $0.2 million in loss prevention expense. Snow removal expenses at our properties located in Pennsylvania and New Jersey increased as a result of two significant snowstorms that affected the Mid-Atlantic states in February 2010. The increases in housekeeping expense and loss prevention expense were due primarily to stipulated annual contractual increases. Real estate tax expense increased by $0.5 million in the three months ended March 31, 2010 compared to the three months ended March 31, 2009, primarily due to higher tax rates in the jurisdictions where properties are located and increased property assessments at some of our properties.
Depreciation and amortization expense increased by $3.0 million, or 8%, in the three months ended March 31, 2010 compared to the three months ended March 31, 2009. Depreciation and amortization expense from 2010 Same Store Properties increased by $3.0 million, primarily due to a higher asset base resulting from capital improvements at our properties, particularly at properties where we have recently completed redevelopments and that are now placed in service. We placed assets with an aggregate basis of $219.8 million in service from March 31, 2009 to March 31, 2010. Depreciation and amortization increased $0.1 million from one property under development during 2009 that is now placed in service.
General and administrative expenses, abandoned project costs, income taxes and other expenses increased by $0.3 million, or 3%, for the three months ended March 31, 2010 compared to the three months ended March 31, 2009. This increase is primarily due to a $0.4 million increase in professional fees and a $0.3 million increase in other general and administrative expenses, offset by a $0.4 million decrease in compensation expense.
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