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Pennsylvania Real Estate Investment Trust (Pennsylvania Real Estate Investment Trust) Financial Strength

: 2 (As of Sep. 2023)
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Pennsylvania Real Estate Investment Trust has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Pennsylvania Real Estate Investment Trust displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Pennsylvania Real Estate Investment Trust did not have earnings to cover the interest expense. Pennsylvania Real Estate Investment Trust's debt to revenue ratio for the quarter that ended in Sep. 2023 was 6.58. As of today, Pennsylvania Real Estate Investment Trust's Altman Z-Score is -1.73.


Competitive Comparison

For the REIT - Retail subindustry, Pennsylvania Real Estate Investment Trust's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Pennsylvania Real Estate Investment Trust Financial Strength Distribution

For the REITs industry and Real Estate sector, Pennsylvania Real Estate Investment Trust's Financial Strength distribution charts can be found below:

* The bar in red indicates where Pennsylvania Real Estate Investment Trust's Financial Strength falls into.



Pennsylvania Real Estate Investment Trust Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Pennsylvania Real Estate Investment Trust's Interest Expense for the months ended in Sep. 2023 was $-47.78 Mil. Its Operating Income for the months ended in Sep. 2023 was $-4.85 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $1,688.69 Mil.

Pennsylvania Real Estate Investment Trust's Interest Coverage for the quarter that ended in Sep. 2023 is

Pennsylvania Real Estate Investment Trust did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Pennsylvania Real Estate Investment Trusts earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

2. Debt to revenue ratio. The lower, the better.

Pennsylvania Real Estate Investment Trust's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(99.406 + 1688.692) / 271.924
=6.58

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Pennsylvania Real Estate Investment Trust has a Z-score of -1.73, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -1.73 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Pennsylvania Real Estate Investment Trust  (NYSE:PEIPRACL.PFD) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Pennsylvania Real Estate Investment Trust has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Pennsylvania Real Estate Investment Trust Financial Strength Related Terms

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Pennsylvania Real Estate Investment Trust (Pennsylvania Real Estate Investment Trust) Business Description

Address
One Commerce Square, 2005 Market Street, Suite 1000, Philadelphia, PA, USA, 19103
Pennsylvania Real Estate Investment Trust is a self-managed and self-administered REIT in the United States. It is engaged in the ownership, management, leasing, acquisition, redevelopment, development, and disposition of retail shopping malls including regional department stores and large format retailers. Its properties involve mall portfolio, redevelopment, specialty leasing, partnerships, and marketing. It derives the substantial majority of revenue from rent leases of retail properties in the real estate portfolio.

Pennsylvania Real Estate Investment Trust (Pennsylvania Real Estate Investment Trust) Headlines