PENNSYLVANIA REAL ESTATE INVESTMENT TRUST MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (form 10-Q)

The following analysis of our consolidated financial condition and results of
operations should be read in conjunction with our unaudited consolidated
financial statements and the notes thereto included elsewhere in this report.
The disclosures in this report are complementary to those made in our Annual
Report on Form 10-K for the year ended December 31, 2021.

OVERVIEW

PREIT, a Pennsylvania business trust founded in 1960 and one of the first equity
real estate investment trusts ("REITs") in the United States, has a primary
investment focus on shopping malls located in the eastern half of the United
States, primarily in the Mid-Atlantic region.

We currently own interests in 24 retail properties, of which 23 are operating
properties and one is a development property. The 23 operating properties
include 20 shopping malls and three other retail properties, have a total of
19.3 million square feet and are located in eight states. We and partnerships in
which we hold an interest own 14.8 million square feet at these properties
(excluding space owned by anchors or third parties).

There are 17 operating retail properties in our portfolio that we consolidate
for financial reporting purposes. These consolidated properties have a total of
14.7 million square feet, of which we own 11.5 million square feet. The six
operating retail properties that are owned by unconsolidated partnerships with
third parties have a total of 4.6 million square feet of which 3.3 million
square feet are owned by such partnerships. When we refer to "Same Store"
properties, we are referring to properties that have been owned for the full
periods presented and exclude properties acquired or disposed of, under
redevelopment or designated as a non-core property during the periods presented.
Core properties include all operating retail properties except for Exton Square
Mall. Valley View Mall was previously designated as a non-core property, but has
since been removed altogether. As discussed further in Note 2 to our
consolidated financial statements, a foreclosure sale judgment with respect to
Valley View Mall was ordered by the court and we no longer operate the property.
The foreclosure proceedings for Valley View Mall were completed in May 2022.
"Core Malls" consists of core proprieties other than power centers.

We have one property in our portfolio that is classified as under development; however, we do not currently have any activity occurring at this property.

Our primary business is owning, operating and redeveloping shopping malls, which
we do primarily through our operating partnership, PREIT Associates, L.P.
("PREIT Associates" or the "Operating Partnership"). We believe our distinctive
real estate is at the forefront of enabling communities to flourish through the
built environment by providing opportunities to create vibrant multi-use
destinations. In general, our malls include carefully curated retail and
lifestyle offerings, including national and regional department stores, large
format retailers and other anchors, mixed with destination dining and
entertainment experiences. In recent years, we have increased the portion of our
mall properties that are leased to non-traditional mall tenants, including life
sciences, healthcare, supermarkets and self-storage facilities.

We provide management, leasing and real estate development services through
PREIT Services, LLC ("PREIT Services"), which generally develops and manages
properties that we consolidate for financial reporting purposes, and
PREIT-RUBIN, Inc. ("PRI"), which generally develops and manages properties that
we do not consolidate for financial reporting purposes, including properties
owned by partnerships in which we own an interest, and properties that are owned
by third parties in which we do not have an interest. PRI is a taxable REIT
subsidiary, as defined by federal tax laws, which means that it is able to offer
additional services to tenants without jeopardizing our continuing qualification
as a REIT under federal tax law.

Our revenue consists primarily of fixed rental income, additional rent in the
form of expense reimbursements, and percentage rent (rent that is based on a
percentage of our tenants' sales or a percentage of sales in excess of
thresholds that are specified in the leases) derived from our income producing
properties. We also receive income from our real estate partnership investments
and from the management and leasing services PRI provides.

The COVID-19 global pandemic that began in early 2020 has adversely impacted and
continues to impact our business, financial condition, liquidity and operating
results, as well as our tenants' businesses. The prolonged and increased spread
of COVID-19 has also led to unprecedented global economic disruption and
volatility in financial markets. Some of our tenants' financial health and
business viability have been adversely impacted and their creditworthiness has
deteriorated. We anticipate that our future business, financial condition,
liquidity and results of operations, including in 2021 and potentially in future
periods, will continue to be materially impacted by the COVID-19 pandemic.
Although we have operated in the COVID-19 environment for approximately two
years, uncertainty remains as to how long the global pandemic, economic
challenges and restrictions on day-to-day life and business operations will
continue to impact us or our tenants.

COVID-19 closures of our properties began on March 12, 2020 and continued
through the reopening of our last property on July 3, 2020; all of our
properties have remained open since that time and are employing safety and
sanitation measures designed to address the risks posed by COVID-19. As of
August 9, 2022, government-imposed capacity restrictions are no longer in place
in the Company's markets. Following the pandemic-related closures, approximately
4% of our tenants failed to re-open (inclusive of tenants that filed for
bankruptcy protection in the aftermath). As a result of the challenging
environment created by COVID-19, primarily beginning in the second quarter of
2020, many of our

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tenants have sought rent relief and deferral and several have failed to pay rent
due. Although we continue to make progress in collecting COVID-19-period rents,
we have also initiated legal proceedings against certain tenants for failure to
pay. Collections improved in 2022 and 2021 as compared to 2020. We believe that
our rent collections are probable, but expect that collections will continue to
be below our tenants' rent obligations as long as the effects of COVID-19 affect
the financial strength of our tenants. Although market fundamentals improved
during 2021 and into 2022, the impacts of COVID-19, including the emergence of
new variants and various impacts on the global supply chain, create significant
uncertainty and are likely to continue impact our operations and results in
2022.

Net loss for the three months ended June 30, 2022 was $11.0 million compared to
net loss of $25.4 million for the three months ended June 30, 2021. This $14.4
million decrease in net loss was primarily due to: : (a) a decrease in real
estate revenue of $0.9 million; (b) a decrease in gain on debt extinguishment of
debt of $4.6 million; (c) an increase in gain on sales of interest in real
estate of $2.7 million; (d) an increase on gain on sales of equity method
investment of $9.1 million; (e) a decrease in gain on sales of real estate by
equity method investee of $1.3 million; and (f) an increase in gain on sales of
non-operating real estate of $8.8 million.

Net loss for the six months ended June 30, 2022 was $44.0 million compared to
net loss of $69.4 million for the six months ended June 30, 2021. This $25.4
million decrease in net loss was primarily due to: (a) an increase in real
estate revenue of $3.0 million resulting from the recovering economic conditions
following the impact of COVID-19 on our tenants; (b) a decrease in gain on debt
extinguishment of debt of $4.6 million; (c) an increase in gain on sales of
interest in real estate of $2.7 million; (d) an increase on gain on sales of
equity method investment of $9.1 million; (e) a decrease in gain on sales of
real estate by equity method investee of $1.3 million; (f) an increase in gain
on sales of non-operating real estate of $8.8 million; and (g) an increase in
gain on sale of preferred equity interest of $3.7 million.

We evaluate operating results and allocate resources on a property-by-property
basis, and do not distinguish or evaluate our consolidated operations on a
geographic basis. Due to the nature of our operating properties, which involve
retail shopping, dining and entertainment, we have concluded that our individual
properties have similar economic characteristics and meet all other aggregation
criteria. Accordingly, we have aggregated our individual properties into one
reportable segment. In addition, no single tenant accounts for 10% or more of
our consolidated revenue, and none of our properties are located outside the
United States.

Current Economic and Industry Conditions and Impact of COVID-19

Conditions in the economy have caused fluctuations and variations in business
and consumer confidence, retail sales, and consumer spending on retail goods,
destination dining and entertainment. Further, traditional mall tenants,
including department store anchors and smaller format retail tenants face
significant challenges resulting from changing consumer expectations, the
convenience of e-commerce shopping, competition from fast fashion retailers, the
expansion of outlet centers, and declining mall traffic, among other factors. In
recent years, there has been an increased level of tenant bankruptcies and store
closings by tenants who have been significantly impacted by these factors. All
of these factors have been exacerbated by the ongoing impact of the COVID-19
pandemic.

The table below sets forth information related to our tenants in bankruptcy for
our consolidated and unconsolidated properties (excluding tenants in bankruptcy
at sold properties):

                                                        Pre-bankruptcy                                                Units Closed
                                                                                    PREIT's                                             PREIT's
                                                                                    Share of                                            Share of
                                                   Number of                       Annualized          Number of                       Annualized
                                 Number of         locations                     Gross Rent(3)         locations                     Gross Rent(3)
Year                            Tenants (1)        impacted        GLA(2)        (in thousands)         closed          GLA(2)       (in thousands)
2022 (through June 30, 2022)
Consolidated properties                     -               -             -     $              -                 -            -     $              -
Unconsolidated properties                   -               -             -                    -                 -            -                    -
Total                                       -               -             -     $              -                 -            -     $              -
2021 (Full Year)
Consolidated properties                     5              10       331,314     $          1,589                 5       18,344     $            380
Unconsolidated properties                   1               1         4,046                   57                 1        4,046                   57
Total                                       5              11       335,360     $          1,646                 6       22,390     $            437



(1) Total represents unique tenants and includes both tenant-owned and
landlord-owned stores. As a result, amounts may not total.
(2) Gross Leasable Area ("GLA") in square feet.
(3) Includes our share of tenant gross rent from partnership properties based on
PREIT's ownership percentage in the respective equity method investments as of
June 30, 2022.

Anchor Replacements

In recent years, through property dispositions, proactive store recaptures, lease terminations and other activities, we have made efforts to reduce our risks associated with certain department store concentrations.

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During 2019, we re-opened or introduced additional tenants to former anchor
positions at Woodland Mall in Grand Rapids, Michigan, Valley Mall in Hagerstown,
Maryland and Plymouth Meeting Mall, in Plymouth Meeting, Pennsylvania. Dick's
Sporting Goods at Valley Mall opened in the first quarter of 2020. At Plymouth
Meeting Mall, we opened Michaels in the first quarter of 2020. In 2017, we
purchased the Macy's location at Moorestown Mall in Moorestown, New Jersey and
opened HomeSense, Sierra Trading, Five Below and Michaels between 2018 and the
first quarter of 2020. During 2021, we opened Power Warehouse and during the
first quarter of 2022, we opened HomeGoods at Cumberland Mall in Vineland, New
Jersey.

Construction was completed in the first quarter of 2020 giving way to the
opening of Burlington in place of a former Sears at Dartmouth Mall in Dartmouth,
Massachusetts. Aldi also opened in the space adjacent to Burlington in September
2021. We expect to continue to move forward with several outparcels at Dartmouth
Mall resulting from the Sears recapture and to work with large format prospects
for the additional space adjacent to Burlington, but have experienced delays due
to the impact of the COVID-19 pandemic.

During 2019, an anchor tenant, Sears, closed at Exton Square Mall in Exton,
Pennsylvania. In January 2020, the Lord & Taylor store at Moorestown Mall in
Moorestown, New Jersey closed and we executed a lease with Turn 7, which opened
in the fourth quarter of 2021. Sears closed its stores at Moorestown Mall in
Moorestown, New Jersey and Jacksonville Mall in Jacksonville, North Carolina in
April 2020. Sears continues to be financially obligated pursuant to the lease at
the Jacksonville Mall location. In July 2021, the former Sears site at
Moorestown Mall was sold to Cooper University Health Care. In May 2020, J.C.
Penney filed for bankruptcy and announced the closure of its stores at The Mall
at Prince George's in Hyattsville, Maryland, and Magnolia Mall in Florence,
South Carolina. The Magnolia Mall location has been leased to Tilt Studio, an
entertainment concept that opened in October 2021.

In response to anchor store closings and other trends in the retail space, we
have been changing the mix of tenants at our properties. In general, our malls
include national and regional department stores, large format retailers and
other anchors, mixed with destination dining and entertainment experiences,
however, in recent years, we have been reducing the percentage of traditional
mall tenants and increasing the share of space dedicated to non-traditional mall
tenants. Approximately 29% of our mall space is committed to non-traditional
tenants offering services such as dining and entertainment, health and wellness,
off-price retail and fast fashion. See "- Capital Improvements, Redevelopment
and Development Projects."

To fund the capital necessary to replace anchors and to maintain a reasonable
level of leverage, we expect to use a variety of means available to us, subject
to and in accordance with the terms of our Credit Agreements. These steps might
include (i) making additional borrowings under our Credit Agreements (assuming
availability and continued compliance with the financial covenants thereunder),
(ii) obtaining construction loans on specific projects, (iii) selling properties
or interests in properties with values in excess of their mortgage loans (if
applicable) and applying the excess proceeds to fund capital expenditures or for
debt reduction, or (iv) obtaining capital from joint ventures or other
partnerships or arrangements involving our contribution of assets with
institutional investors, private equity investors or other REITs.

Capital Improvements, Redevelopment and Development Projects

We might engage in various types of capital improvement projects at our
operating properties. Such projects vary in cost and complexity, and can include
building out new or existing space for individual tenants, upgrading common
areas or exterior areas such as parking lots, or redeveloping the entire
property, among other projects. Project costs are accumulated in "Construction
in progress" on our consolidated balance sheet until the asset is placed into
service, and amounted to $45.5 million as of June 30, 2022.

As of June 30, 2022, we had unaccrued contractual and other commitments related
to our capital improvement projects and development projects at our consolidated
and unconsolidated properties of $4.3 million, including $0.5 million of
commitments related to the redevelopment of Fashion District Philadelphia, in
the form of contracts with general service providers and other professional
service providers.

In 2014, we entered into a 50/50 joint venture with The Macerich Company
("Macerich") to redevelop Fashion District Philadelphia. As we redevelop Fashion
District Philadelphia, operating results in the short term, as measured by
sales, occupancy, real estate revenue, property operating expenses, Net
Operating Income ("NOI") and depreciation, will continue to be affected until
the newly constructed space is completed, leased and occupied.

In January 2018, the Company and Macerich entered into a $250.0 million term
loan (as amended in July 2019 to increase the total maximum potential borrowings
to $350.0 million) to fund the ongoing redevelopment of Fashion DistrictPhiladelphia and to repay capital contributions to the venture previously made
by the partners. A total of $51.0 million was drawn during the third quarter of
2019 and we received aggregate distributions of $25.0 million as our share of
the draws. On December 10, 2020, PM Gallery LP, together with certain other
subsidiaries owned indirectly by us and Macerich (including the fee and
leasehold owners of the properties that are part of the Fashion DistrictPhiladelphia project), entered into an Amended and Restated Term Loan Agreement
(the "FDP Loan Agreement"). In connection with the execution of the FDP Loan
Agreement, a $100.0 million principal payment was made (and funded indirectly by
Macerich, the "Partnership Loan") to pay down the existing loan, reducing the
outstanding principal under the FDP Loan Agreement from $301.0 million to $201.0
million. The joint venture must repay the Partnership Loan plus 15% accrued
interest to Macerich, in its capacity as the lender, prior to the resumption of
50/50 cash distributions to us and Macerich. In connection with the execution of
the FDP Loan Agreement, the governing structure of PM Gallery LP was

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modified such that, effective as of January 1, 2021, Macerich is responsible for
the entity's operations and, subject to limited exceptions, controls major
decisions. The Company considered the changes to the governing structure of PM
Gallery LP and determined the investment qualifies as a variable interest entity
and would continue to be accounted for under the equity method of accounting.

The FDP Loan Agreement provides for (i) a maturity date of January 22, 2023,
with the potential for a one-year extension upon the borrowers' satisfaction of
certain conditions, (ii) an interest rate at the borrowers' option with respect
to each advance of either (A) the Base Rate (defined as the highest of (a) the
Prime Rate, (b) the Federal Funds Rate plus 0.50%, and (c) the LIBOR Market
Index Rate plus 1.00%) plus 2.50% or (B) LIBOR for the applicable period plus
3.50%, (iii) a full recourse guarantee of 50% of the borrowers' obligations by
PREIT Associates, L.P., on a several basis, (iv) a full recourse guarantee of
certain of the borrowers' obligations by The Macerich Partnership, L.P., up to a
maximum of $50.0 million, on a several basis, (v) a pledge of the equity
interests of certain indirect subsidiaries of PREIT and Macerich, as well as of
PREIT-RUBIN, Inc. and one of its subsidiaries, that have a direct or indirect
ownership interest in the borrowers, (vi) a non-recourse carve-out guaranty and
a hazardous materials indemnity by each of PREIT Associates, L.P. and The
Macerich Partnership, L.P., and (vii) mortgages of the borrowers' fee and
leasehold interests in the properties that are part of the Fashion DistrictPhiladelphia project and certain other properties. The FDP Loan Agreement
contains certain covenants typical for loans of its type.

We also own an interest in a development property, but we do not expect to make any significant investment at this property in the short term.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Critical Accounting Policies are those that require the application of
management's most difficult, subjective, or complex judgments, often because of
the need to make estimates about the effect of matters that are inherently
uncertain and that might change in subsequent periods. In preparing the
unaudited consolidated financial statements, management has made estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the consolidated financial statements, and the reported amounts of
revenue and expenses during the reporting periods. In preparing the unaudited
consolidated financial statements, management has utilized available
information, including our past history, industry standards and the current
economic environment, among other factors, in forming its estimates and
judgments, giving due consideration to materiality. Management has also
considered events and changes in property, market and economic conditions,
estimated future cash flows from property operations and the risk of loss on
specific accounts or amounts in determining its estimates and judgments. Actual
results may differ from these estimates. In addition, other companies may
utilize different estimates, which may affect comparability of our results of
operations to those of companies in a similar business. The estimates and
assumptions made by management in applying critical accounting policies have not
changed materially during 2022 and 2021, except as otherwise noted, and none of
these estimates or assumptions have proven to be materially incorrect or
resulted in our recording any significant adjustments relating to prior periods.
We will continue to monitor the key factors underlying our estimates and
judgments, but no change is currently expected.

For additional information regarding our Critical Accounting Policies, see “Critical Accounting Policies and Estimates” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended. December 31, 2021.

Asset Impairment

Real estate investments and related intangible assets are reviewed for
impairment whenever events or changes in circumstances indicate that the
carrying amount of the property might not be recoverable, which is referred to
as a "triggering event.". A property to be held and used is considered impaired
only if management's estimate of the aggregate future cash flows, less estimated
capital expenditures, to be generated by the property, undiscounted and without
interest charges, are less than the carrying value of the property. This
estimate takes into consideration factors such as expected future operating
income, trends and prospects, as well as the effects of demand, competition and
other factors.

If there is a triggering event in relation to a property to be held and used, we
will estimate the aggregate future cash flows, less estimated capital
expenditures, to be generated by the property, undiscounted and without interest
charges. In addition, this estimate may consider a probability weighted cash
flow estimation approach when alternative courses of action to recover the
carrying amount of a long-lived asset are under consideration or when a range of
possible values is estimated.

The determination of undiscounted cash flows requires significant estimates by
management, including the expected course of action at the balance sheet date
that would lead to such cash flows. Subsequent changes in estimated undiscounted
cash flows arising from changes in the anticipated action to be taken with
respect to the property could impact the determination of whether an impairment
exists and whether the effects could materially affect our net income. To the
extent estimated undiscounted cash flows are less than the carrying value of the
property, the loss will be measured as the excess of the carrying amount of the
property over the estimated fair value of the property. Our intent is to hold
and operate our properties long-term, which reduces the likelihood that our
carrying value is not recoverable. A shortened holding period would increase the
likelihood that the carrying value is not recoverable.

Assessment of our ability to recover certain lease related costs must be made
when we have a reason to believe that the tenant might not be able to perform
under the terms of the lease as originally expected. This requires us to make
estimates as to the recoverability of such costs.

An other-than-temporary impairment of an investment in an unconsolidated joint
venture is recognized when the carrying value of the investment is not
considered recoverable based on evaluation of the severity and duration of the
decline in value. To the extent impairment has occurred, the excess carrying
value of the asset over its estimated fair value is recorded as reduction to
income.

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During the three and six months ended June 30, 2022, no asset impairment loss
was recorded. During the three months ended June 30, 2021, we recorded an
impairment loss of $1.3 million in connection with our classification of Valley
View Center as held for sale. The June 30, 2021 impairment loss is included in
the consolidated statement of operations.

Revenue and Receivables

We derive over 95% of our revenue from tenant rent and other tenant-related activities. Tenant rent includes base rent, percentage rent, expense reimbursements (such as reimbursements of costs of common area maintenance (“CAM”), real estate taxes and utilities), and the amortization of above-market and below-market lease intangibles.

We accrue revenue under leases, provided that it is probable that we will
collect substantially all of the lease revenue that is due under the terms of
the lease both at inception and on an ongoing basis. When collectability of
lease revenue is not probable, leases are prospectively accounted for on a cash
basis and any difference between the revenue that has been accrued and the cash
collected from the tenant over the life of the lease is recognized as a current
period adjustment to lease revenue. We review the collectability of our tenant
receivables related to tenant rent including base rent, straight-line rent,
expense reimbursements and other revenue or income by specifically analyzing
billed and unbilled revenues, including straight-line rent receivable, and
considering historical collection issues, tenant creditworthiness and current
economic and industry trends. Our revenue recognition and receivables
collectability analysis places particular emphasis on past-due accounts and
considers the nature and age of the receivables, the payment history and
financial condition of the payor, the basis for any disputes or negotiations
with the payor, and other information that could affect collectability.

We record base rent on a straight-line basis, which means that the monthly base
rent revenue according to the terms of our leases with our tenants is adjusted
so that an average monthly rent is recorded for each tenant over the term of its
lease. When tenants vacate prior to the end of their lease, we accelerate
amortization of any related unamortized straight-line rent balances, and
unamortized above-market and below-market intangible balances are amortized as a
decrease or increase to real estate revenue, respectively.

Percentage rent represents rental revenue that the tenant pays based on a percentage of its sales, either as a percentage of its total sales or as a percentage of sales over a certain threshold. In the latter case, we do not record percentage rent until the sales threshold has been reached.

Revenue for rent received from tenants prior to their due dates is deferred until the period to which the rent applies.

In addition to base rent, certain lease agreements contain provisions that
require tenants to reimburse a fixed or pro rata share of certain CAM costs,
real estate taxes and utilities. Tenants generally make monthly expense
reimbursement payments based on a budgeted amount determined at the beginning of
the year. Effective January 1, 2019, we recognize fixed CAM revenue
prospectively on a straight-line basis.

Certain lease agreements contain co-tenancy clauses that can change the amount
of rent or the type of rent that tenants are required to pay, or, in some cases,
can allow the tenant to terminate their lease, in the event that certain events
take place, such as a decline in property occupancy levels below certain defined
levels or the vacating of an anchor store. Co-tenancy clauses do not generally
have any retroactive effect when they are triggered. The effect of co-tenancy
clauses is applied on a prospective basis to recognize the new rent that is in
effect.

Payments made to tenants as inducements to enter into a lease are treated as
deferred costs that are amortized as a reduction of rental revenue over the term
of the related lease.

Lease termination fee revenue is recognized in the period when a termination
agreement is signed, collectability is assured, and the tenant has vacated the
space. In the event that a tenant is in bankruptcy when the termination
agreement is signed, termination fee income is deferred and recognized when it
is received.

Utility reimbursement revenue is presented separate from rental revenue based on actual usage as the pattern of transfer is not aligned with the use of the property.

We also generate revenue by providing management services to third parties,
including property management, brokerage, leasing and development. Management
fees generally are a percentage of managed property revenue or cash receipts.
Leasing fees are earned upon the consummation of new leases. Development fees
are earned over the time period of the development activity and are recognized
on the percentage of completion method. These activities are collectively
included in "Other income" in the consolidated statements of operations.

Revenue from the reimbursement of marketing expenses is generated through tenant
leases that require tenants to reimburse a defined amount of property marketing
expenses. Our contractual performance obligations are fulfilled as marketing
expenditures are made. Tenant payments are received monthly as required by the
respective lease terms. We defer income recognition if the reimbursements exceed
the aggregate marketing expenditures made through that date. Deferred marketing
reimbursement revenue is recorded in tenants' deposits and deferred rent on the
consolidated balance sheet. The marketing reimbursements are recognized as
revenue at the time that the marketing expenditures occur.

Property management revenue from management and development activities is
generated through contracts with third party owners of real estate properties or
with certain of our joint ventures, and is recorded in other income in the
consolidated statements of operations. In the case of management fees, our
performance obligations are fulfilled over time as the management services are
performed and the associated revenues are recognized on a monthly basis when the
customer is billed. In the case of development fees, our performance obligations
are fulfilled over

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time as we perform certain stipulated development activities as set forth in the
respective development agreements and the associated revenues are recognized on
a monthly basis when the customer is billed.

New Accounting Developments

See Note 1 to our unaudited consolidated financial statements for descriptions of new accounting developments.

RESULTS OF OPERATIONS

Overview

Net loss for the three months ended June 30, 2022 was $11.0 million compared to
net loss of $25.4 million for the three months ended June 30, 2021. This $14.4
million decrease in net loss was primarily due to: (a) a decrease in real estate
revenue of $0.9 million; (b) a decrease in gain on debt extinguishment of debt
of $4.6 million; (c) an increase in gain on sales of interest in real estate of
$2.7 million; (d) an increase on gain on sales of equity method investment of
$9.1 million; (e) a decrease in gain on sales of real estate by equity method
investee of $1.3 million; and (f) an increase in gain on sales of non-operating
real estate of $8.8 million.

Net loss for the six months ended June 30, 2022 was $44.0 million compared to
net loss of $69.4 million for the six months ended June 30, 2021. This $25.4
million decrease in net loss was primarily due to: (a) an increase in real
estate revenue of $3.0 million resulting from the recovering economic conditions
following the impact of COVID-19 on our tenants; (b) a decrease in gain on debt
extinguishment of debt of $4.6 million; (c) an increase in gain on sales of
interest in real estate of $2.7 million; (d) an increase on gain on sales of
equity method investment of $9.1 million; (e) a decrease in gain on sales of
real estate by equity method investee of $1.3 million; (f) an increase in gain
on sales of non-operating real estate of $8.8 million; and (g) an increase in
gain on sale of preferred equity interest of $3.7 million.

Occupancy

The table below sets forth certain occupancy statistics for our properties as of
June 30, 2022 and 2021:

                                                              Occupancy(1) at June 30,
                                            Consolidated           Unconsolidated
                                             Properties              Properties             Combined(2)
                                          2022       2021         2022        2021        2022       2021
Retail portfolio weighted average (3):
Total excluding anchors                    90.5 %      86.5 %       87.6 %      80.8 %     89.8 %      84.8 %
Total including anchors                    92.3 %      89.0 %       90.2 %      84.4 %     91.8 %      87.9 %
Core Malls weighted average: (4)
Total excluding anchors                    92.7 %      88.5 %       80.3 %      74.6 %     90.5 %      86.0 %
Total including anchors                    95.3 %      90.5 %       85.6 %      81.4 %     93.8 %      89.0 %


(1) Occupancy for all periods presented includes all tenants irrespective of the
term of their agreement.
(2) Combined occupancy is calculated by using occupied gross leasable area
("GLA") for consolidated and unconsolidated properties and dividing by total GLA
for consolidated and unconsolidated properties.
(3) Retail portfolio includes all retail properties including Fashion DistrictPhiladelphia.
(4) Core Malls excludes Exton Square Mall and power centers.

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Leasing Activity

The table below sets forth summary leasing activity information with respect to
our consolidated and unconsolidated properties for the three months ended June
30, 2022:

                                                                                                                                                   Annualized
                                                                 Initial Rent                                                  Average Rent          Tenant
                                                                  per square        Previous        Initial Gross Rent            Renewal         Improvements
                           Number         GLA         Term       foot ("psf")       Rent psf         Renewal Spread(1)           Spread(2)           psf(3)
                                                                                                      $              %               %
Non Anchor
New Leases
Under 10k
square feet                     51       131,077         5.0     $       30.92            N/A            N/A          N/A                N/A      $        4.40
("sf")
Over 10k sf                      2        33,246        10.0             21.31            N/A            N/A          N/A                N/A              11.39
Total New                       53       164,323         6.0     $       28.98            N/A            N/A          N/A                N/A      $        6.76
Leases

Renewal
Leases
Under 10k sf                    30        51,340         3.2     $       80.12$    79.07$     1.05          1.3 %              5.7 %    $           -
Over 10k sf                      3        87,431         2.2             12.67          14.73          (2.06 )      (14.0 %)           (14.4 %)               -
Total Fixed                     33       138,771         2.6     $       37.62$    38.53$    (0.91 )       (2.4 %)             0.3 %    $           -
Rent
Total
Percentage in                   22        47,313         2.9             44.50          44.16           0.34          0.8 %              N/A                  -
Lieu
Total Renewal                   55       186,084         2.7     $       39.37$    39.96$    (0.59 )       (1.5 %)             N/A      $           -
Leases
Total Non                      108       350,407         4.2     $       34.50
Anchor (4)

Anchor
New Leases                       -             -           -     $           -     $        -     $        -          N/A                N/A      $           -
Renewal                          2       447,900         7.8              5.06           5.06              -            -                N/A                  -
Leases
Total                            2       447,900         7.8     $        5.06


(1) Initial gross rent renewal spread is computed by comparing the initial rent
per square foot in the new lease to the final rent per square foot amount in the
expiring lease. For purposes of this computation, the rent amount includes
minimum rent, common area maintenance ("CAM") charges, estimated real estate tax
reimbursements and marketing charges, but excludes percentage rent. In certain
cases, a lower rent amount may be payable for a period of time until specified
conditions in the lease are satisfied.
(2) Average rent renewal spread is computed by comparing the average rent per
square foot over the new lease term to the final rent per square foot amount in
the expiring lease. For purposes of this computation, the rent amount includes
minimum rent and fixed CAM charges, but excludes pro rata CAM charges, estimated
real estate tax reimbursements, marketing charges and percentage rent.
(3) These leasing costs are presented as annualized amounts per square foot and
are spread uniformly over the initial lease term.
(4) Includes 9 leases and 21,079 square feet of GLA with respect to our
unconsolidated partnerships. We own a 25% to 50% interest in each of our
unconsolidated properties and do not control such properties. Our percentage
ownership is not necessarily indicative of the legal and economic implications
of our ownership interest. See "- Non-GAAP Supplemental Financial Measures" for
further details on our ownership interests in our unconsolidated properties.



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The table below sets forth summary leasing activity information with respect to
our consolidated and unconsolidated properties for the six months ended June 30,
2022:

                                                                                                                                                      Annualized
                                                                 Initial Rent                                                    Average Rent           Tenant
                                                                  per square        Previous         Initial Gross Rent            Renewal           Improvements
                          Number          GLA         Term       foot ("psf")       Rent psf         Renewal Spread(1)            Spread(2)             psf(3)
                                                                                                      $               %               %
Non Anchor
New Leases
Under 10k
square feet                     86       209,130         5.5     $       34.65            N/A            N/A           N/A                 N/A      $         5.57
("sf")
Over 10k sf                      4        74,696        11.4     $       16.98            N/A            N/A           N/A                 N/A                8.08
Total New                       90       283,826         7.1     $       30.00            N/A            N/A           N/A                 N/A      $         6.63
Leases

Renewal
Leases
Under 10k sf                    63       151,321         3.9     $       61.40$    61.87$    (0.47 )        (0.8 %)              4.7 %    $         0.94
Over 10k sf                      6       157,166         3.1             17.83          18.63          (0.80 )        (4.3 %)             (4.4 %)             2.08
Total Fixed                     69       308,487         3.4     $       39.20$    39.84$    (0.64 )        (1.6 %)              2.3 %    $         1.46
Rent
Total
Percentage in                   35        95,660         2.6     $       31.96$    32.18          (0.22 )        (0.7 %)              0.0 %              0.75
Lieu
Total Renewal                  104       404,147         3.2     $       37.49$    38.03$    (0.54 )        (1.4 %)              N/A      $         1.33
Leases (4)
Total Non                      194       687,973         4.8     $       34.40
Anchor

Anchor
New Leases                       -             -           -     $           -            N/A            N/A           N/A                 N/A      $            -
Renewal                          2       447,900         7.8              5.06           5.06              -           0.0 %               N/A                   -
Leases
Total                            2       447,900         7.8     $        5.06


(1) Initial gross rent renewal spread is computed by comparing the initial rent
per square foot in the new lease to the final rent per square foot amount in the
expiring lease. For purposes of this computation, the rent amount includes
minimum rent, common area maintenance ("CAM") charges, estimated real estate tax
reimbursements and marketing charges, but excludes percentage rent. In certain
cases, a lower rent amount may be payable for a period of time until specified
conditions in the lease are satisfied.
(2) Average rent renewal spread is computed by comparing the average rent per
square foot over the new lease term to the final rent per square foot amount in
the expiring lease. For purposes of this computation, the rent amount includes
minimum rent and fixed CAM charges, but excludes pro rata CAM charges, estimated
real estate tax reimbursements, marketing charges and percentage rent.
(3) These leasing costs are presented as annualized amounts per square foot and
are spread uniformly over the initial lease term.
(4) Includes 12 leases and 33,335 square feet of GLA with respect to our
unconsolidated partnerships. We own a 25% to 50% interest in each of our
unconsolidated properties and do not control such properties. Our percentage
ownership is not necessarily indicative of the legal and economic implications
of our ownership interest. See "- Non-GAAP Supplemental Financial Measures" for
further details on our ownership interests in our unconsolidated properties.



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The following table sets forth our results of operations for the three and six months ended. June 30, 2022 and 2021.

                              Three Months Ended           % Change          Six Months Ended            % Change
                                   June 30,              2021 to 2022            June 30,              2021 to 2022
(in thousands of dollars)     2022          2021                            2022          2021
Real estate revenue         $  73,058$  73,956            (1.2 ) %   $ 142,252$ 139,234             2.2   %
Property operating
expenses                      (31,802 )     (30,765 )           3.4   %     (65,375 )     (63,924 )           2.3   %
Other income                       69           162           (57.4 ) %         310           288             7.6   %
Depreciation and
amortization                  (28,382 )     (29,686 )          (4.4 ) %     (57,492 )     (59,525 )          (3.4 ) %
General and
administrative expenses        (9,744 )     (13,535 )         (28.0 ) %     (21,227 )     (25,366 )         (16.3 ) %
Provision for employee
separation expenses                85          (149 )        (157.0 ) %           1          (240 )        (100.4 ) %
Insurance recoveries, net           -           670          (100.0 ) %           -           670          (100.0 ) %
Project costs and other
expenses                          (19 )         (77 )         (75.3 ) %         (79 )        (179 )         (55.9 ) %
Interest expense, net         (32,601 )     (31,978 )           1.9   %     (63,992 )     (62,709 )           2.0   %
Reorganization expenses             -           (69 )        (100.0 ) %           -          (267 )        (100.0 ) %
Gain on debt
extinguishment, net                 -         4,587          (100.0 ) %           -         4,587          (100.0 ) %
Impairment of assets                -        (1,302 )        (100.0 ) %           -        (1,302 )        (100.0 ) %
Equity in (loss) income
of partnerships                (1,188 )       2,433          (148.8 ) %      (1,583 )      (1,000 )          58.3   %
Gain (loss) on sales of
interests in real estate        1,701          (974 )        (274.6 ) %       1,701          (974 )        (274.6 ) %
Gain on sale of equity
method investment               9,053                         100.0   %       9,053                         100.0   %
Gain on sales of real
estate by equity method
investee                            -         1,347          (100.0 ) %           -         1,347          (100.0 ) %
Gain on sales of non
operating real estate           8,755             -             0.0   %       8,755             -             0.0   %
Gain on sale of preferred
equity interest                     -             -           100.0   %       3,688             -           100.0   %
Net loss                    $ (11,015 )$ (25,380 )         (56.6 ) %   $ (43,988 )$ (69,360 )         (36.6 ) %




The amounts in the preceding tables reflect our consolidated properties and our
unconsolidated properties. Our unconsolidated properties are presented under the
equity method of accounting in the line item "Equity in (loss) income of
partnerships."

Real Estate Revenue

We include all rental income earned pursuant to tenant leases under the "Lease
revenue" line item in the consolidated statements of operations. Utility
reimbursements are presented separately in "Expense reimbursements" as the
pattern of transfer is not aligned with the use of the property. We review the
collectability of both billed and unbilled lease revenues each reporting period,
taking into consideration the tenant's payment history, credit profile and other
factors, including the tenant's operating performance. For any tenant receivable
balance deemed to be uncollectible, we record an offset for credit losses
directly to Lease revenue in the consolidated statements of operations.

The following table reports the breakdown of real estate revenues based on the
terms of the lease contracts for the three and six months ended June 30, 2022
and 2021:

                                              Three Months Ended June 30,           Six Months Ended June 30,
(in thousands of dollars)                      2022                 2021              2022               2021
Contractual lease payments:
Base rent                                 $       48,452$       49,613            96,107       $   95,530
CAM reimbursement income                  $        8,306                8,301            16,782           16,660
Real estate tax income                    $        7,154                6,677            14,321           13,621
Percentage rent                           $          472                  217               585              205
Lease termination revenue                 $        1,530                  622             1,539              659
                                                  65,914               65,430           129,334          126,675
Less: credit losses                                  738                2,682               759            1,345
Lease revenue                                     66,652               68,112           130,093          128,020
Expense reimbursements                             4,215                3,887             8,359            7,786
Other real estate revenue                          2,191                1,957             3,800            3,428
Total real estate revenue                 $       73,058$       73,956           142,252       $  139,234




Real Estate Revenue
Real estate revenue decreased by $0.9 million, or 1%, in the three months ended
June 30, 2022 compared to the three months ended June 30, 2021, primarily due
to:

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an increase of $1.5 million in same store credit losses due to the collection of
receivables from the resolution of COVID-19 related issues with tenants across
our portfolio for the three months ended June 30, 2021;

a decrease of $0.9 million at non-same store properties Valley View Mall and
Exton Square Mall due to lower occupancy and the collection of receivables from
the resolution of COVID-19 related issues with tenants for the three months
ended June 30, 2021 at Exton Square Mall, and the sale of the strip center at
Valley View Mall in the third quarter of 2021;

a decrease of $0.6 million in same store base rent due to decreases of $1.8
million from the treatment and amortization of COVID-19 related rent credits and
$0.1 million from comparable tenants paying a percentage of sales in lieu of
minimum rent partially offset by an increase of $1.3 million from net new store
openings over the previous twelve months; partially offset by,

an increase of $0.9 million in lease termination revenue, including $1.5 million
from the termination of leases with two tenants during 2022, partially offset by
$0.6 million received from four tenants during 2021;

an increase of $0.5 million in the same store real estate tax reimbursements due to increased occupancy and abatements recorded in the prior year;

an increase of $0.4 million in same store utility reimbursements related to the increase in same store utility expense (see “-Property Operating Expenses”);

an increase of $0.3 million in same store other real estate revenue due to promotional revenues in the common areas and parking lots; and

Real estate revenue increased by $3.0 millionor 2%, in the six months ended
June 30, 2022 compared to the six months ended June 30, 2021primarily due to:

an increase of $1.3 million in same store base rent due to increases of $2.8
million from net new store openings over the previous twelve months and $0.3
million from comparable tenants paying a percentage of sales in lieu of minimum
rent, partially offset by a decrease of $1.8 million from the treatment and
amortization of COVID-19 related rent credits;

an increase of $0.8 million in same store lease termination revenue, including
$1.5 million from the termination of leases with three tenants during 2022, partially offset by $0.7 million received from seven tenants during 2021;

an increase of $0.8 million in the same store real estate tax reimbursements due to increased occupancy and abatements recorded in the prior year;

an increase of $0.7 million in same store utility reimbursements related to the increase in same store utility expense (see “-Property Operating Expenses”);

an increase of $0.3 million in same store other real estate revenue due to promotional revenues in the common areas and parking lots;

an increase of $0.2 million in same store common area expense reimbursements due to increased occupancy and abatements recorded in the prior year, partially offset by a decrease of $0.3 million associated with the straight lining of fixed common area expense reimbursements;

an increase of $0.2 million in the same store percentage rent; partially offset by

a decrease of $1.0 million at non-same store properties Valley View Mall and
Exton Square Mall due to lower occupancy and the collection of receivables from
the resolution of COVID-19 related issues with tenants for the six months ended
June 30, 2021 at Exton Square Mall, and the sale of the strip center at Valley
View Mall in the third quarter of 2021; and

an increase of $0.3 million in same store credit losses due to credit losses due
to the collection of receivables from the resolution of COVID-19 related issues
with tenants across our portfolio for the six months ended June 30, 2021.

Property Operating Expenses
Property operating expenses increased by $1.0 million, or 3%, in the three
months ended June 30, 2022 compared to the three months ended June 30, 2021,
primarily due to:

an increase of $0.7 million in same store tenant utility expense due to a combination of higher electricity usage and electricity rates;

an increase of $0.3 million in same store real estate tax expense due to a combination of increases in the real estate tax assessment value and the real estate tax rate; and

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an increase of $0.2 million in same store common area maintenance expense,
including a $0.3 million increase in repairs and maintenance, a $0.2 million
increase in utility expense due to a combination of higher electricity usage and
electricity rates and a $0.1 million increase in insurance expense, partially
offset by a $0.4 million decrease in security expense due to negotiated credits
with our vendor; partially offset by

a decrease of $0.2 million at non-same store properties Valley View Mall and
Exton Square Mall.

Property operating expenses increased by $1.5 million, or 2%, in the six months
ended June 30, 2022 compared to the six months ended June 30, 2021, primarily
due to:

an increase of $1.2 million in same store tenant utility expense due to a combination of higher electricity usage and electricity rates;

an increase of $0.4 million in same store common area maintenance expense,
including a $0.5 million increase in utility expense due to a combination of
higher electricity usage and electricity rates, a $0.3 million increase in
insurance expense and a $0.1 million increase in repairs and maintenance,
partially offset by a $0.4 million decrease in security expense due to
negotiated credits with our vendor and a $0.1 million decrease in snow removal
expense due to higher snowfall amounts during 2021 across the Mid-Atlantic
States; and

an increase of $0.4 million in same store real estate tax expense due to a combination of increases in the real estate tax assessment value and the real estate tax rate; partially offset by

a decrease of $0.3 million at non-same store properties Valley View Mall and
Exton Square Mall; and

a decrease of $0.2 million in same store other property operating expenses due to a decrease in property legal expense.

Depreciation and Amortization
Depreciation and amortization expense decreased by $1.3 million, or 4%, in the
three months ended June 30, 2022 compared to the three months ended June 30,
2021, primarily due to:

a decrease of $0.8 million resulting from accelerated amortization of capital improvements associated with store closings during 2021; and

a decrease of $0.5 million at non-same store properties Exton Square Mall and
Valley View Mall.

Depreciation and amortization expense decreased by $2.0 million, or 3%, in the
six months ended June 30, 2022 compared to the six months ended June 30, 2021,
primarily due to:

a decrease of $1.3 million resulting from accelerated amortization of capital improvements associated with store closings during 2021; and

a decrease of $0.7 million at non-same store properties Exton Square Mall and
Valley View Mall.

General and Administrative Expenses

General and administrative expenses decreased by $3.8 million, or 28.0%, in the
three months ended June 30, 2022 compared to the three months ended June 30,
2021 primarily due to lower incentive compensation expenses in 2022.

General and administrative expenses decreased by $4.1 million, or 16.3%, in the
six months ended June 30, 2022 compared to the six months ended June 30, 2021
primarily due to lower incentive compensation expenses in 2022.

Interest Expense

Interest expense increased by $0.6 million, or 1.9%, in the three months ended
June 30, 2022 compared to the three months ended June 30, 2021. This increase
was primarily due to higher weighted average interest rates. Our weighted
average effective borrowing rate was 7.07% for the three months ended June 30,
2022 compared to 5.90% for the three months ended June 30, 2021. Our weighted
average debt balance was $1,846.2 million for the three months ended June 30,
2022, compared to $1,856.8 million for the three months ended June 30, 2021.

Interest expense increased by $1.3 million, or 2.0%, in the six months ended
June 30, 2022 compared to the six months ended June 30, 2021. This increase was
primarily due to higher weighted average interest rates. Our weighted average
effective borrowing rate was 6.90% for the six months ended June 30, 2022
compared to 6.28% for the six months ended June 30, 2021. Our weighted average
debt balance was $1,855.0 million for the six months ended June 30, 2022,
compared to $1,855.5 million for the six months ended June 30, 2021.

Gain on Debt Extinguishment

For the three and six months ended June 30, 2022we did not record any gain on debt extinguishment.

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On June 10, 2021, we were notified that the full principal balance and accrued
interest on our loan under the Paycheck Protection Program (PPP) of the
Coronavirus Aid, Relief, and Economic Security (CARES) Act was forgiven. As a
result of the forgiveness, we recorded a gain on debt extinguishment of $4.6
million during the three and six months ended June 30, 2021.

Reorganization Expenses

For the three and six months ended June 30, 2022we have not incurred any reorganization expenses.

For the three and six months ended June 30, 2021, we incurred costs and fees of
$0.1 million and $0.3 million in connection with our efforts to finalize our
Financial Restructuring that were directly attributable to our bankruptcy
proceedings, which we classified within reorganization expenses in the
consolidated statement of operations.

Equity in Loss (Income) of Partnerships

Equity in loss of partnerships was a loss of $1.2 million in the three months
ended June 30, 2022 compared to income of $2.4 million in the prior year period,
reflecting a decrease of $3.6 million, or 148.8%. The increase in loss was
primarily due to a significant lease termination at Fashion DistrictPhiladelphia in 2021 as the payment was applied to rent and outstanding charges
with the remainder being recorded as lease termination income.

Equity in loss of partnerships was $1.6 million in the six months ended June 30,
2022 compared to a loss of $1.0 million in the prior year period, reflecting a
change of $0.6 million, or 58.3% due to the lease termination in 2021 at Fashion
District Philadelphia offset by higher real estate revenues across all of our
partnership properties in 2022 due to the economic rebound following the
COVID-19 impact.


Gain (Loss) on Sales of Real Estate
During the three and six months ended June 30, 2022, there was a $1.7 million
gain on sales of real estate compared to a loss of $1.0 million in the prior
year period. In June 2022, we closed on the sale of an outparcel at Francis
Scott Key Mall for $2.4 million and recorded a gain on sales of real estate of
$1.7 million.

In May 2021, we closed on the sale of a parcel of property at Moorestown Mall
for $10.1 million. In connection with the sale, we paid a $9.0 million lease
termination fee for a portion of the property that was under a lease agreement
along with closing costs that resulted in net proceeds of $0.8 million. For the
six months ended June 30, 2021, we recorded a loss on sales of real estate of
$1.0 million in connection with the sale.

Gain on Sale of Equity Method Investment
During the three and six months ended June 30, 2022, there was a $9.1 million
gain on sale of equity method investment. In June 2022, we closed on the sale of
our 25% interest in Gloucester Premium Outlets for $35.4 million for which we
recorded a gain on sale of equity method investment of $9.1 million.

There was no gain on sale of equity method investment for the three and six months ended. June 30, 2021.

Gain on Sales of Interests in Non Operating Real Estate
During the three and six months ended June 30, 2022, there was an $8.8 million
gain on sales of interests in non-operating real estate. In June 2022, we sold a
parcel of land adjacent to Moorestown Mall for $11.8 million for residential
development purposes. The gain resulting from the sale was $8.8 million.

There was no gain on sale of interest in non operating real estate for the three and six months ended. June 30, 2021.

Gain on Sale of Preferred Equity Interest
During the three months ended June 30, 2022 there was no gain on sale of
preferred equity interest. During the six months ended June 30, 2022, there was
a $3.7 million gain on sale of preferred equity interest in a property that we
received in exchange for the sale of a property we previously owned,
respectively.

There was no gain on sale of preferred equity interest for the three and six months ended. June 30, 2021.

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NON-GAAP SUPPLEMENTAL FINANCIAL MEASURES

Overview

The preceding discussion analyzes our financial condition and results of
operations in accordance with generally accepted accounting principles, or GAAP,
for the periods presented. We also use Net Operating Income ("NOI") and Funds
from Operations ("FFO") which are non-GAAP financial measures, to supplement our
analysis and discussion of our operating performance:

We believe that NOI is helpful to management and investors as a measure of
operating performance because it is an indicator of the return on property
investment and provides a method of comparing property performance over time.
When we use and present NOI, we also do so on a same store ("Same Store NOI")
and non-same store ("Non Same Store NOI") basis to differentiate between
properties that we have owned for the full periods presented and properties
acquired, sold or under redevelopment during those periods. Furthermore, our use
and presentation of NOI combines NOI from our consolidated properties and NOI
attributable to our share of unconsolidated properties in order to arrive at
total NOI. We believe that this is also helpful information because it reflects
the pro rata contribution from our unconsolidated properties that are owned
through investments accounted for under GAAP as equity in income of
partnerships. See "Unconsolidated Properties and Proportionate Financial
Information" below.

We believe that FFO is also helpful to management and investors as a measure of
operating performance because it excludes various items included in net loss
that do not relate to or are not indicative of operating performance, such as
gains on sales of operating real estate and depreciation and amortization of
real estate, among others. In addition to FFO and FFO per diluted share and OP
Unit, when applicable, we also present FFO, as adjusted and FFO per diluted
share and OP Unit, as adjusted, which we believe is helpful to management and
investors because they adjust FFO to exclude items that management does not
believe are indicative of operating performance, such as gain on debt
extinguishment and insurance recoveries.

We use both NOI and FFO, or related terms like Same Store NOI and, when applicable, Funds From Operations, as adjusted, for determining incentive compensation amounts under certain of our performance-based executive compensation programs.

NOI and FFO are commonly used non-GAAP financial measures of operating
performance in the real estate industry, and we use them as supplemental
non-GAAP measures to compare our performance between different periods and to
compare our performance to that of our industry peers. Our computation of NOI,
FFO and other non-GAAP financial measures, such as Same Store NOI, Non Same
Store NOI, NOI attributable to our share of unconsolidated properties, and FFO,
as adjusted, may not be comparable to other similarly titled measures used by
our industry peers. None of these measures are measures of performance in
accordance with GAAP, and they have limitations as analytical tools. They should
not be considered as alternative measures of our net loss, operating
performance, cash flow or liquidity. They are not indicative of funds available
for our cash needs, including our ability to make cash distributions. Please see
below for a discussion of these non-GAAP measures and their respective
reconciliation to the most directly comparable GAAP measure.

Unconsolidated Properties and Proportionate Financial Information

The non-GAAP financial measures presented below incorporate financial
information attributable to our share of unconsolidated properties. This
proportionate financial information is non-GAAP financial information, but we
believe that it is helpful information because it reflects the pro rata
contribution from our unconsolidated properties that are owned through
investments accounted for under GAAP using the equity method of accounting.
Under such method, earnings from these unconsolidated partnerships are recorded
in our statements of operations prepared in accordance with GAAP under the
caption entitled "Equity in (loss) income of partnerships."

To derive the proportionate financial information reflected in the tables below
as "unconsolidated," we multiplied the percentage of our economic interest in
each partnership on a property-by-property basis by each line item. Under the
partnership agreements relating to our current unconsolidated partnerships with
third parties, we own a 25% to 50% economic interest in such partnerships, and
there are generally no provisions in such partnership agreements relating to
special non-pro rata allocations of income or loss, and there are no preferred
or priority returns of capital or other similar provisions. While this method
approximates our indirect economic interest in our pro rata share of the revenue
and expenses of our unconsolidated partnerships, we do not have a direct legal
claim to the assets, liabilities, revenues or expenses of the unconsolidated
partnerships beyond our rights as an equity owner in the event of any
liquidation of such entity. Our percentage ownership is not necessarily
indicative of the legal and economic implications of our ownership interest.
Accordingly, NOI and FFO results based on our share of the results of
unconsolidated partnerships do not represent cash generated from our investments
in these partnerships.

We have determined that we hold a noncontrolling interest in each of our unconsolidated partnerships, and account for such partnerships using the equity method of accounting, because:

Except for one property that we co-manage with our partner, all of the other
entities are managed on a day-to-day basis by one of our other partners as the
managing general partner in each of the respective partnerships. In the case of
the co-managed property, all decisions in the ordinary course of business are
made jointly.

The managing general partner is responsible for establishing the operating and
capital decisions of the partnership, including budgets, in the ordinary course
of business.

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All major decisions of each partnership, such as the sale, refinancing, expansion or rehabilitation of the property, require the approval of all partners.

Voting rights and the sharing of profits and losses are generally in proportion to the ownership percentages of each partner.

We hold legal title to a property owned by one of our unconsolidated
partnerships through a tenancy in common arrangement. For this property, such
legal title is held by us and another entity, and each has an undivided interest
in title to the property. With respect to this property, under the applicable
agreements between us and the entity with ownership interests, we and such other
entity have joint control because decisions regarding matters such as the sale,
refinancing, expansion or rehabilitation of the property require the approval of
both us and the other entity owning an interest in the property. Hence, we
account for this property like our other unconsolidated partnerships using the
equity method of accounting. The balance sheet items arising from this property
appear under the caption "Investments in partnerships, at equity."

For further information regarding our unconsolidated partnerships, see note 3 to our unaudited consolidated financial statements.

Net Operating Income (“NOI”)

NOI (a non-GAAP measure) is derived from real estate revenue (determined in
accordance with GAAP, including lease termination revenue), minus property
operating expenses (determined in accordance with GAAP), plus our pro rata share
of revenue and property operating expenses of our unconsolidated partnership
investments. NOI does not represent cash generated from operating activities in
accordance with GAAP and should not be considered to be an alternative to net
loss (determined in accordance with GAAP) as an indication of our financial
performance or to be an alternative to cash flow from operating activities
(determined in accordance with GAAP) as a measure of our liquidity. It is not
indicative of funds available for our cash needs, including our ability to make
cash distributions. We believe NOI is helpful to management and investors as a
measure of operating performance because it is an indicator of the return on
property investment, and provides a method of comparing property performance
over time. We believe that net loss is the most directly comparable GAAP measure
to NOI. NOI excludes other income, depreciation and amortization, general and
administrative expenses, insurance recoveries (net), provision for employee
separation expenses, project costs and other expenses, interest expense,
reorganization expenses, impairment of assets, equity in loss/income of
partnerships, gain on extinguishment of debt, gain/loss on sales of real estate
and gain/loss on sale of preferred equity interest.

Same Store NOI is calculated using retail properties owned for the full periods
presented and excludes properties acquired or disposed of, under redevelopment,
or designated as non-core during the periods presented. Non Same Store NOI is
calculated using the retail properties excluded from the calculation of Same
Store NOI.

The table below reconciles net loss to NOI of our consolidated properties for the three and six months ended. June 30, 2022 and 2021:

                                              Three Months Ended June 30,           Six Months Ended June 30,
(in thousands of dollars)                      2022                 2021              2022               2021
Net loss                                  $      (11,015 )$      (25,380 )$     (43,988 )$  (69,360 )
Other income                                         (69 )               (162 )            (310 )           (288 )
Depreciation and amortization                     28,382               29,686            57,492           59,525
General and administrative expenses                9,744               13,535            21,227           25,366
Insurance recoveries, net                              -                 (670 )               -             (670 )
Provision for employee separation
expenses                                             (85 )                149                (1 )            240
Project costs and other expenses                      19                   77                79              179
Interest expense, net                             32,601               31,978            63,992           62,709
Reorganization expenses                                -                   69                 -              267
Impairment of assets                                   -                1,302                 -            1,302
Equity in loss (income) of partnerships            1,188               (2,433 )           1,583            1,000
Gain on extinguishment of debt                         -               (4,587 )               -           (4,587 )
(Gain) loss on sales of interests in
real estate                                       (1,701 )                974            (1,701 )            974
Gain on sale of equity method
investment                                        (9,053 )                  -            (9,053 )              -
Gain on sales of real estate by equity
method investee                                        -               (1,347 )               -           (1,347 )
Gain on sales of non-operating real
estate                                            (8,755 )                  -            (8,755 )              -
Gain on sale of preferred equity
interest                                               -                    -            (3,688 )              -

NOI from consolidated properties $41,256$43,191$76,877$75,310




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Table of Contents



The table below reconciles equity in (loss) income of partnerships to NOI of our
share of unconsolidated properties for the three and six months ended June 30,
2022 and 2021:

                                              Three Months Ended June 30,             Six Months Ended June 30,
(in thousands of dollars)                      2022                 2021              2022                2021

Equity in (loss) income of partnerships $ (1,188 )$2,433$ (1,583 )$ (1000 )
Depreciation and amortization

                      2,973                2,974             5,995               6,162
Impairment of assets                                   -                  265                 -                 265
Interest and other expenses                        6,050                5,531            11,852              10,818
NOI from equity method investments at
ownership share                           $        7,835$       11,203$      16,264$      16,245

The table below presents total NOI and total NOI excluding lease termination revenue for the three months ended. June 30, 2022 and 2021:

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