Quarterly Supplemental Disclosure

EX-99.1 2 dex991.htm QUARTERLY SUPPLEMENTAL DISCLOSURE Quarterly Supplemental Disclosure

Exhibit 99.1

Pennsylvania Real Estate Investment Trust

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Supplemental Financial and Operating Information

Quarter Ended September 30, 2008

www.preit.com

NYSE common shares (PEI)

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

September 30, 2008

Table of Contents


*Introduction*

Company Information		1

Press Release Announcements		2

Market Capitalization and Capital Resources		3

*Operating Results*

Income Statement-Proportionate Consolidation Method - Three Months Ended September 30, 2008 and September 30, 2007		4

Income Statement-Proportionate Consolidation Method - Nine Months Ended September 30, 2008 and September 30, 2007		5

Net Operating Income - Three Months Ended September 30, 2008 and September 30, 2007		6

Net Operating Income - Nine Months Ended September 30, 2008 and September 30, 2007		7

Computation of Earnings per Share		8

Funds From Operations and Funds Available for Distribution		9

*Operating Statistics*

Leasing Activity Summary		10

Summarized Rent Per Square Foot and Occupancy Percentages		11

Mall Sales and Rent Per Square Foot		12

Mall Occupancy - Owned GLA		13

Strip and Power Center Rent Per Square Foot and Occupancy Percentages		14

Top Twenty Tenants		15

Lease Expirations		16

Gross Leasable Area Summary		17

Property Information		18

Vacant Anchor Summary		21

*Balance Sheet*

Balance Sheet - Proportionate Consolidation Method		22

Balance Sheet - Property Type		23

Investment in Real Estate		24

Property Redevelopment and Repositioning Summary		26

Development Property Summary		28

Capital Expenditures		29

Debt Analysis		30

Debt Schedule		31

Shareholder Information		32

Definitions		33

FORWARD-LOOKING STATEMENTS

This Quarterly Supplemental Financial and Operating Information contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREIT’s current views about future events and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. More specifically, PREIT’s business might be affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: general economic, financial and political conditions, including credit market conditions, changes in interest rates or the possibility of war or terrorist attacks; changes in local market conditions or other competitive or retail industry factors in the regions where our properties are concentrated; PREIT’s ability to maintain and increase property occupancy and rental rates, and risks relating to development or redevelopment activities, including construction, obtaining entitlements and managing multiple projects simultaneously. In particular, the successful development or redevelopment of any property is subject to a number of risks, including, among others, that PREIT’s development or redevelopment plans might change, its development or redevelopment activities might be delayed and anticipated project costs might increase. Unanticipated expenses or delays would also adversely affect PREIT’s investment returns on a development or redevelopment project. Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the estimates set forth above, or that PREIT’s returns on its developments, redevelopments or acquisitions will be consistent with the estimates outlined in the related press releases or other disclosures. Investors are also directed to consider the risks and uncertainties discussed in documents PREIT has filed with the Securities and Exchange Commission and, in particular, PREIT’s Annual Report on Form 10-K for the year ended December 31, 2007. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

Pennsylvania Real Estate Investment Trust

Company Information

Background

Pennsylvania Real Estate Investment Trust (“PREIT” or “the Company”), founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls and strip and power centers. As of September 30, 2008, the Company’s retail portfolio, which was approximately 34.4 million square feet, consisted of 56 properties including 38 shopping malls, 14 strip and power centers, and four properties under development. The Company’s properties are located in 13 states in the eastern half of the United States, primarily in the Mid-Atlantic region.

If you would like to participate in our quarterly conference call or would like additional information about PREIT, please contact:

Nurit Yaron, Vice President - Investor Relations

200 South Broad Street

Philadelphia, PA 19102

Telephone: (215) 875-0735

Fax: (215) 546-2504

Email: yaronn@preit.com

Reporting Calendar

Results for 2008 will be announced as follows (tentative date):

Fourth Quarter 2008 February 24, 2009

Research Coverage


Company	Analyst	Phone Number

Citi Investment Research	Michael Bilerman	(212) 816-1383

Green Street Advisors	Jim Sullivan	(949) 640-8780
	Ben Yang	(949) 640-8780

JP Morgan	Michael W. Mueller	(212) 622-6689
	Sarah E. King	(212) 622-5670

Merrill Lynch	Craig Schmidt	(212) 449-1944
	Steve Sakwa	(212) 449-0335

Stifel Nicolaus	Nathan Isbee	(443) 224-1346
	David M. Fick	(443) 224-1308

UBS Securities	Jeffrey Spector	(212) 713-6144

Page 1

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

October 24, 2008 PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.57 per common share.

July 28, 2008 PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.57 per common share.

Financing activities:

October 8, 2008 PREIT announced it has secured an additional $40 million to its already announced senior unsecured term loan, and has exercised a 14 month extension on its Credit Facility.

September 10, 2008 PREIT announced that is has closed $420 million in secured and unsecured financings and has repaid its $400 million, 15 property real estate mortgage investment conduit (REMIC).

July 24, 2008 PREIT announced that it has completed financing of Paxton Towne Centre in Harrisburg, Pennsylvania.

Other activities:

October 17, 2008 PREIT scheduled its Third Quarter 2008 earnings call for Monday, November 3, 2008.

August 7, 2008 PREIT reported its Second Quarter 2008 financial results.

July 21, 2008 PREIT scheduled its Second Quarter 2008 earnings call for Thursday, August 7, 2008.

Page 2

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources


	Quarter Ended September 30,						Year Ended December 31,
	2008			2007			2007			2006			2005
TRADING INFORMATION
High Price	$	24.29		$	45.38		$	50.39		$	44.53		$	50.20
Low Price	$	16.57		$	34.37		$	28.48		$	36.75		$	35.24
Average Daily Trading Volume		656,615			348,670			395,718			223,686			209,537
MARKET CAPITALIZATION (in thousands, except per share amounts)
EQUITY CAPITALIZATION
Common Shares Outstanding		39,397			38,664			38,953			36,947			36,521
OP Units Outstanding		2,238			2,682			2,395			4,297			4,156

TOTAL Shares and OP Units		41,635			41,346			41,348			41,244			40,677

Market Price (closing price at end of period)	$	18.85		$	38.94		$	29.68		$	39.38		$	37.36
Equity Market Capitalization - Shares and OP Units	$	784,830		$	1,610,005		$	1,227,216		$	1,606,325		$	1,519,679
Preferred Shares, Nominal Value		—			—			—			123,750			123,750

Total Equity Market Capitalization		784,830			1,610,005			1,227,216			1,730,075			1,643,429

DEBT CAPITALIZATION
Unsecured Debt Balance ^{(1) (2) (3)}		837,500			533,648			617,500			333,148			436,900
Secured Debt Balance		1,866,730			1,837,860			1,831,211			1,789,511			1,523,745

Debt Capitalization		2,704,230			2,371,508			2,448,711			2,122,659			1,960,645

TOTAL MARKET CAPITALIZATION	$	3,489,060		$	3,981,513		$	3,675,927		$	3,852,734		$	3,604,074

*Shares and OP Units/Total Market Capitalization*		22.5	%		40.4	%		33.4	%		41.7	%		42.2	%
*Preferred Shares/Total Market Capitalization*		0.0	%		0.0	%		0.0	%		3.2	%		3.4	%
*Equity Capitalization/Total Market Capitalization*		22.5	%		40.4	%		33.4	%		44.9	%		45.6	%
*Debt Capitalization/Total Market Capitalization*		77.5	%		59.6	%		66.6	%		55.1	%		54.4	%
*Unsecured Debt Balance/Total Debt*		31.0	%		22.5	%		25.2	%		15.7	%		22.3	%
DISTRIBUTIONS PER COMMON SHARE
Ordinary Income		⁽⁴⁾		$	0.526		$	2.105		$	1.935		$	2.075
Section 1250 Gain		⁽⁴⁾			—			—			0.037			—
Return of Capital/Non-Taxable		⁽⁴⁾			0.044			0.175			0.308			0.175

Distributions per share	$	0.570		$	0.570		$	2.280		$	2.280		$	2.250

Annualized Dividend Yield ⁽⁵⁾		12.1	%		5.9	%		7.7	%		5.8	%		6.0	%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	25,205		$	23,861		$	33,227		$	18,727		$	25,828
Credit Facility		500,000			500,000			500,000			500,000			500,000
Amount Outstanding		(380,000	)		(245,000	)		(330,000	)		(332,000	)		(342,500	)
Letters of Credit		(10,967	)		(16,686	)		(16,686	)		(24,803	)		(10,485	)

Available Line of Credit ⁽⁶⁾		109,033			238,314			153,314			143,197			147,015

Shelf Registration		1,000,000			1,000,000			1,000,000			1,000,000			1,000,000
Amount Used		(344,146	)		(344,146	)		(344,146	)		(344,146	)		(344,146	)

Available Shelf		655,854			655,854			655,854			655,854			655,854

TOTAL CAPITAL RESOURCES	$	790,092		$	918,029		$	842,395		$	817,778		$	828,697

⁽¹⁾	The unsecured debt balance includes $1,148, $1,148 and $94,400 of corporate notes payable as of June 30, 2007, December 31, 2006 and December 31, 2005, respectively.

⁽²⁾	The unsecured debt balance includes $287,500 in exchangeable senior notes as of September 30, 2008, December 31, 2007 and September 30, 2007.

⁽³⁾	The unsecured debt balance includes $170,000 in senior unsecured term loans as of September 30, 2008.

⁽⁴⁾	Tax status of 2008 dividend payments will be available in January 2009.

⁽⁵⁾	Based on closing share price at the end of the period.

⁽⁶⁾	The available line of credit is subject to covenants that may restrict amounts that can be borrowed.

Page 3

Pennsylvania Real Estate Investment Trust

Income Statement - Three Months Ended September 30, 2008 and 2007

Proportionate Consolidation Method

(in thousands)


	Three months ended September 30, 2008											Three months ended September 30, 2007
	GAAP			Share of unconsolidated partnerships (1)			Discontinued operations		Total			GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total
Real estate revenue:
Base rent	$	73,110		$	6,312		$	—	$	79,422		$	71,547		$	6,020		$	(13	)	$	77,554
Expense reimbursements		35,477			2,739			—		38,216			33,369			2,234			—			35,603
Percentage rent		1,060			44			—		1,104			1,289			38			—			1,327
Lease termination revenue		320			—			—		320			690			5			—			695
Other real estate revenue		3,718			430			—		4,148			3,902			192			34			4,128

TOTAL REAL ESTATE REVENUE		113,685			9,525			—		123,210			110,797			8,489			21			119,307

Property operating expenses:
CAM and real estate taxes		(33,577	)		(1,993	)		—		(35,570	)		(31,620	)		(1,712	)		16			(33,316	)
Utilities		(7,019	)		(247	)		—		(7,266	)		(6,886	)		(252	)		—			(7,138	)
Other property operating expenses		(7,148	)		(795	)		—		(7,943	)		(5,885	)		(635	)		(18	)		(6,538	)

TOTAL PROPERTY OPERATING EXPENSES		(47,744	)		(3,035	)		—		(50,779	)		(44,391	)		(2,599	)		(2	)		(46,992	)

NET OPERATING INCOME		65,941			6,490			—		72,431			66,406			5,890			19			72,315

Management company revenue		1,181			—			—		1,181			854			—			—			854
Interest and other income		240			—			—		240			535			—			—			535
Other expenses:
General and administrative expenses		(10,364	)		—			—		(10,364	)		(9,801	)		—			—			(9,801	)
Abandoned project costs, income taxes and other expenses		(311	)		—			—		(311	)		(196	)		—			—			(196	)

Total other expenses		(10,675	)		—			—		(10,675	)		(9,997	)		—			—			(9,997	)
Interest expense, net ⁽²⁾		(28,450	)		(2,351	)		—		(30,801	)		(24,866	)		(3,028	)		—			(27,894	)
Depreciation and amortization		(38,435	)		(1,970	)		—		(40,405	)		(32,743	)		(1,714	)		—			(34,457	)

Subtotal		(10,198	)		2,169			—		(8,029	)		189			1,148			19			1,356
Equity in income of partnerships		2,169			(2,169	)		—		—			1,148			(1,148	)		—			—
Gains on sales of non-operating real estate		49			—			—		49			247			—			—			247
Minority interest		349			—			—		349			(103	)		—			—			(103	)

TOTAL CONTINUING OPERATIONS		(7,631	)		—			—		(7,631	)		1,481			—			19			1,500

Discontinued Operations:
Operating results from discontinued operations		—			—			—		—			19			—			(19	)		—
Minority interest		—			—			—		—			(1	)		—			—			(1	)

TOTAL DISCONTINUED OPERATIONS		—			—			—		—			18			—			(19	)		(1	)

NET (LOSS) INCOME		(7,631	)		—			—		(7,631	)		1,499			—			—			1,499

Dividends on preferred shares		—			—			—		—			(1,134	)		—			—			(1,134	)
Gain on redemption of preferred shares		—			—			—		—			13,347			—			—			13,347

NET (LOSS ALLOCABLE) INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	(7,631	)	$	—		$	—	$	(7,631	)	$	13,712		$	—		$	—		$	13,712

⁽¹⁾	PREIT’s proportionate share of partnership operations is “grossed up” to reflect the Company’s share of the total revenue and expenses of the underlying properties.

⁽²⁾	Capitalized interest expense of $4,145 and $4,455 is not included for the three months ended September 30, 2008 and September 30, 2007, respectively.

Page 4

Pennsylvania Real Estate Investment Trust

Income Statement - Nine Months Ended September 30, 2008 and 2007

Proportionate Consolidation Method

(in thousands)


	Nine months ended September 30, 2008											Nine months ended September 30, 2007
	GAAP			Share of unconsolidated partnerships (1)			Discontinued operations		Total			GAAP			Share of unconsolidated partnerships (1)			Discontinued operations			Total
Real estate revenue:
Base rent	$	219,951		$	18,961		$	—	$	238,912		$	213,300		$	17,843		$	530		$	231,673
Expense reimbursements		103,417			7,638			—		111,055			101,028			6,708			436			108,172
Percentage rent		3,526			162			—		3,688			4,922			76			—			4,998
Lease termination revenue		2,618			—			—		2,618			1,408			6			—			1,414
Other real estate revenue		10,951			1,291			—		12,242			11,329			639			116			12,084

TOTAL REAL ESTATE REVENUE		340,463			28,052			—		368,515			331,987			25,272			1,082			358,341

Property operating expenses:
CAM and real estate taxes		(98,846	)		(5,915	)		—		(104,761	)		(95,116	)		(5,235	)		(473	)		(100,824	)
Utilities		(19,308	)		(708	)		—		(20,016	)		(19,055	)		(697	)		(259	)		(20,011	)
Other property operating expenses		(19,002	)		(2,036	)		—		(21,038	)		(16,954	)		(1,733	)		(117	)		(18,804	)

TOTAL PROPERTY OPERATING EXPENSES		(137,156	)		(8,659	)		—		(145,815	)		(131,125	)		(7,665	)		(849	)		(139,639	)

NET OPERATING INCOME		203,307			19,393			—		222,700			200,862			17,607			233			218,702

Management company revenue		2,992			—			—		2,992			2,323			—			—			2,323
Interest and other income		622			—			—		622			1,827			—			—			1,827
Other expenses:
General and administrative expenses		(31,777	)		—			—		(31,777	)		(30,969	)		—			—			(30,969	)
Abandoned project costs, income taxes and other expenses		(1,815	)		—			—		(1,815	)		(865	)		—			—			(865	)

Total other expenses		(33,592	)		—			—		(33,592	)		(31,834	)		—			—			(31,834	)
Interest expense, net ⁽²⁾		(80,817	)		(7,668	)		—		(88,485	)		(72,338	)		(9,208	)		(136	)		(81,682	)
Depreciation and amortization		(111,455	)		(5,987	)		—		(117,442	)		(96,970	)		(5,127	)		(215	)		(102,312	)

Subtotal		(18,943	)		5,738			—		(13,205	)		3,870			3,272			(118	)		7,024
Equity in income of partnerships		5,738			(5,738	)		—		—			3,272			(3,272	)		—			—
Gains on sales of interests in real estate		—			—			—		—			579			—			—			579
Gains on sales of non-operating real estate		49			—			—		49			1,731			—			—			1,731
Minority interest		499			—			—		499			(884	)		—			—			(884	)

TOTAL CONTINUING OPERATIONS		(12,657	)		—			—		(12,657	)		8,568			—			(118	)		8,450

Discontinued Operations:
Operating results from discontinued operations		—			—			—		—			(118	)		—			118			—
Gain on sale of discontinued operations		—			—			—		—			6,699			—			—			6,699
Minority interest		—			—			—		—			(691	)		—			—			(691	)

TOTAL DISCONTINUED OPERATIONS		—			—			—		—			5,890			—			118			6,008

NET (LOSS) INCOME		(12,657	)		—			—		(12,657	)		14,458			—			—			14,458

Dividends on preferred shares		—			—			—		—			(7,941	)		—			—			(7,941	)
Gain on redemption of preferred shares		—			—			—		—			13,347			—			—			13,347

NET (LOSS ALLOCABLE) INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	(12,657	)	$	—		$	—	$	(12,657	)	$	19,864		$	—		$	—		$	19,864

⁽¹⁾	PREIT’s proportionate share of partnership operations is “grossed up” to reflect the Company’s share of the total revenue and expenses of the underlying properties.

⁽²⁾	Capitalized interest expense of $11,584 and $11,883 is not included for the nine months ended September 30, 2008 and September 30, 2007, respectively.

Page 5

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Three Months Ended September 30, 2008 and 2007

(in thousands)


	Three months ended September 30, 2008												Three months ended September 30, 2007
SAME STORE RETAIL/NEW/OTHER	Same			New			Other			Total			Same			New			Other			Total
Real estate revenue:
Base rent	$	78,069		$	903		$	450		$	79,422		$	77,515		$	—		$	39		$	77,554
Expense reimbursements		38,000			204			12			38,216			35,603			—			—			35,603
Percentage rent		1,104			—			—			1,104			1,327			—			—			1,327
Lease termination revenue		320			—			—			320			695			—			—			695
Other real estate revenue		3,961			—			187			4,148			4,094			—			34			4,128

TOTAL REAL ESTATE REVENUE		121,454			1,107			649			123,210			119,234			—			73			119,307

Property operating expenses:
CAM and real estate taxes		(35,022	)		(196	)		(352	)		(35,570	)		(33,322	)		—			6			(33,316	)
Utilities		(7,251	)		(15	)		—			(7,266	)		(7,138	)		—			—			(7,138	)
Other property operating expenses		(7,954	)		(6	)		17			(7,943	)		(6,519	)		—			(19	)		(6,538	)

TOTAL PROPERTY OPERATING EXPENSES		(50,227	)		(217	)		(335	)		(50,779	)		(46,979	)		—			(13	)		(46,992	)

NET OPERATING INCOME	$	71,227		$	890		$	314		$	72,431		$	72,255		$	—		$	60		$	72,315


	Three months ended September 30, 2008												Three months ended September 30, 2007
SAME STORE COMPARISON	Malls			Strip and Power Centers			Total						Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	70,503		$	7,566		$	78,069					$	70,072		$	7,443		$	77,515
Expense reimbursements		36,295			1,705			38,000						33,956			1,647			35,603
Percentage rent		1,066			38			1,104						1,290			37			1,327
Lease termination revenue		320			—			320						690			5			695
Other real estate revenue		3,905			56			3,961						4,046			48			4,094

TOTAL REAL ESTATE REVENUE		112,089			9,365			121,454						110,054			9,180			119,234

Property operating expenses:
CAM and real estate taxes		(33,384	)		(1,638	)		(35,022	)					(31,678	)		(1,644	)		(33,322	)
Utilities		(7,185	)		(66	)		(7,251	)					(7,087	)		(51	)		(7,138	)
Other property operating expenses		(7,740	)		(214	)		(7,954	)					(6,333	)		(186	)		(6,519	)

TOTAL PROPERTY OPERATING EXPENSES		(48,309	)		(1,918	)		(50,227	)					(45,098	)		(1,881	)		(46,979	)

NET OPERATING INCOME	$	63,780		$	7,447		$	71,227					$	64,956		$	7,299		$	72,255

⁽¹⁾	PREIT’s proportionate share of partnership operations is “grossed up” to reflect the Company’s share of the total revenue and expenses of the underlying properties.

Page 6

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Nine Months Ended September 30, 2008 and 2007

(in thousands)


	Nine months ended September 30, 2008												Nine months ended September 30, 2007
SAME STORE RETAIL/NEW/OTHER	Same			New			Other			Total			Same			New			Other			Total
Real estate revenue:
Base rent	$	235,016		$	2,644		$	1,252		$	238,912		$	230,985		$	—		$	688		$	231,673
Expense reimbursements		110,660			351			44			111,055			107,736			—			436			108,172
Percentage rent		3,657			—			31			3,688			4,998			—			—			4,998
Lease termination revenue		2,618			—			—			2,618			1,414			—			—			1,414
Other real estate revenue		11,623			—			619			12,242			11,968			—			116			12,084

TOTAL REAL ESTATE REVENUE		363,574			2,995			1,946			368,515			357,101			—			1,240			358,341

Property operating expenses:
CAM and real estate taxes		(103,348	)		(327	)		(1,086	)		(104,761	)		(100,320	)		—			(504	)		(100,824	)
Utilities		(19,980	)		(36	)		—			(20,016	)		(19,752	)		—			(259	)		(20,011	)
Other property operating expenses		(20,906	)		(67	)		(65	)		(21,038	)		(18,684	)		—			(120	)		(18,804	)

TOTAL PROPERTY OPERATING EXPENSES		(144,234	)		(430	)		(1,151	)		(145,815	)		(138,756	)		—			(883	)		(139,639	)

NET OPERATING INCOME	$	219,340		$	2,565		$	795		$	222,700		$	218,345		$	—		$	357		$	218,702


	Nine months ended September 30, 2008												Nine months ended September 30, 2007
SAME STORE COMPARISON	Malls			Strip and Power Centers			Total						Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	212,440		$	22,576		$	235,016					$	208,591		$	22,394		$	230,985
Expense reimbursements		105,636			5,024			110,660						102,705			5,031			107,736
Percentage rent		3,520			137			3,657						4,917			81			4,998
Lease termination revenue		2,618			—			2,618						1,408			6			1,414
Other real estate revenue		11,454			169			11,623						11,803			165			11,968

TOTAL REAL ESTATE REVENUE		335,668			27,906			363,574						329,424			27,677			357,101

Property operating expenses:
CAM and real estate taxes		(98,600	)		(4,748	)		(103,348	)					(95,192	)		(5,128	)		(100,320	)
Utilities		(19,782	)		(198	)		(19,980	)					(19,616	)		(136	)		(19,752	)
Other property operating expenses		(20,204	)		(702	)		(20,906	)					(18,026	)		(658	)		(18,684	)

TOTAL PROPERTY OPERATING EXPENSES		(138,586	)		(5,648	)		(144,234	)					(132,834	)		(5,922	)		(138,756	)

NET OPERATING INCOME	$	197,082		$	22,258		$	219,340					$	196,590		$	21,755		$	218,345

⁽¹⁾	PREIT’s proportionate share of partnership operations is “grossed up” to reflect the Company’s share of the total revenue and expenses of the underlying properties.

Page 7

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share

(in thousands, except per share amounts)


	Three months ended September 30,						Nine months ended September 30,
	2008			2007			2008			2007
Net (loss) income from continuing operations	$	(7,631	)	$	1,481		$	(12,657	)	$	8,568
Redemption of preferred shares		—			13,347			—			13,347
Dividends on preferred shares		—			(1,134	)		—			(7,941	)

Net (loss) income from continuing operations allocable to common shareholders		(7,631	)		13,694			(12,657	)		13,974
Dividends on unvested restricted shares		(304	)		(272	)		(918	)		(815	)

(Loss) income from continuing operations used to calculate earnings per share - basic		(7,935	)		13,422			(13,575	)		13,159
Minority interest in properties-continuing operations		—			—			—			—

(Loss) income from continuing operations used to calculate earnings per share - diluted	$	(7,935	)	$	13,422		$	(13,575	)	$	13,159

Income from discontinued operations	$	—		$	18		$	—		$	5,890

*Basic (loss) earnings per share:*
(Loss) income from continuing operations	$	(0.20	)	$	0.35		$	(0.35	)	$	0.35
Income from discontinued operations		—			—			—			0.16

	$	(0.20	)	$	0.35		$	(0.35	)	$	0.51

*Diluted (loss) earnings per share:*
(Loss) income from continuing operations	$	(0.20	)	$	0.35		$	(0.35	)	$	0.35
Income from discontinued operations		—			—			—			0.16

	$	(0.20	)	$	0.35		$	(0.35	)	$	0.51

Weighted average of common shares outstanding		39,374			38,659			39,306			37,744
Weighted average of unvested restricted shares		(534	)		(478	)		(525	)		(525	)

Weighted average shares outstanding - basic		38,840			38,181			38,781			37,219
Weighted average effect of common share equivalents⁽¹⁾		—			295			—			363

Total weighted average shares outstanding - diluted		38,840			38,476			38,781			37,582

⁽¹⁾	For the three and nine month periods ended September 30, 2008 there are net losses allocable to common shareholders from continuing operations, so the effect of common share equivalents is excluded from the calculation of diluted loss per share for these periods.

Page 8

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)


	Three months ended September 30,						Nine months ended September 30,						Year Ended December 31,
	2008			2007			2008			2007			2007
FUNDS FROM OPERATIONS (FFO)
Net (loss) income	$	(7,631	)	$	1,499		$	(12,657	)	$	14,458		$	23,161
Redemption of preferred shares		—			13,347			—			13,347			13,347
Dividends on preferred shares		—			(1,134	)		—			(7,941	)		(7,941	)
Minority interest		(349	)		104			(499	)		1,575			2,105
Gain on sale of interests in real estate		—			—			—			(579	)		(579	)
Gain on sale of interests in discontinued operations		—			—			—			(6,699	)		(6,699	)
Depreciation and amortization:⁽¹⁾
Wholly owned and consolidated partnerships		37,766			32,178			109,484			95,275			129,924
Unconsolidated partnerships		1,970			1,714			5,987			5,127			7,130
Discontinued operations		—			—			—			215			215

FFO	$	31,756		$	47,708		$	102,315		$	114,778		$	160,663

FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	31,756		$	47,708		$	102,315		$	114,778		$	160,663
Adjustments:
Straight line rent		(575	)		(599	)		(2,334	)		(1,554	)		(2,484	)
Recurring capital expenditures		(5,782	)		(6,005	)		(10,686	)		(9,633	)		(17,579	)
Tenant allowances		(7,788	)		(4,485	)		(12,155	)		(9,783	)		(14,294	)
Capitalized leasing costs		(1,166	)		(1,011	)		(3,971	)		(3,502	)		(4,830	)
Amortization of debt premium		(3,016	)		(3,135	)		(9,197	)		(9,733	)		(12,843	)
Amortization of above- and below- market lease intangibles		117			(34	)		355			(115	)		(171	)
Redemption of preferred shares		—			(13,347	)		—			(13,347	)		(13,347	)

FAD	$	13,546		$	19,092		$	64,327		$	67,111		$	95,115

Weighted average of common shares outstanding		38,840			38,181			38,781			37,219			37,577
Weighted average of OP Units outstanding		2,238			2,694			2,239			3,610			3,308
Weighted average effect of common share equivalents		12			295			18			363			325

Total weighted average shares outstanding, including OP Units		41,090			41,170			41,038			41,192			41,210

Net (loss) income per diluted share	$	(0.20	)	$	0.35		$	(0.35	)	$	0.51		$	0.73
FFO per diluted share	$	0.77		$	1.16		$	2.49		$	2.79		$	3.90
FAD per diluted share	$	0.33		$	0.46		$	1.57		$	1.63		$	2.31
Dividend per common share	$	0.57		$	0.57		$	1.71		$	1.71		$	2.28
PAYOUT RATIOS
Payout Ratio of FFO		63.2	%⁽²⁾
Payout Ratio of FAD		101.5	%⁽²⁾

⁽¹⁾	Excludes depreciation of non-real estate assets and amortization of deferred financing costs.

⁽²⁾	Twelve months ended September 30, 2008

Page 9

Pennsylvania Real Estate Investment Trust

2008 Leasing Activity Summary


			Average Base Rent psf				Change in Base Rent psf				Annualized Tenant Improvements psf⁽¹⁾
	Number	GLA	Previous		New		Dollar		Percentage		Annualized Tenant Improvements psf⁽¹⁾
New Leases - Previously Leased Space:
1st Quarter	21	86,749	$	27.00	$	30.36	$	3.36	12.5	%	$	3.15
2nd Quarter	22	70,048		20.02		24.47		4.45	22.2	%		2.46
3rd Quarter ⁽²⁾	25	50,143		34.46		41.64		7.18	20.8	%		2.57

Total/Average	68	206,940	$	26.45	$	31.10	$	4.65	17.8	%	$	2.77
New Leases - Previously Vacant Space: ⁽²⁾
1st Quarter	43	151,731	$	—	$	25.86	$	25.86	N/A		$	2.94
2nd Quarter	29	126,747		—		26.73		26.73	N/A			4.95
3rd Quarter ⁽²⁾	27	76,388		—		35.56		35.56	N/A			2.81

Total/Average	99	354,866	$	—	$	28.26	$	28.26	N/A		$	3.63
Renewal: ⁽³⁾
1st Quarter	112	343,485	$	20.86	$	23.27	$	2.41	11.6	%	$	0.20
2nd Quarter	97	245,646		25.91		28.35		2.44	9.4	%		0.07
3rd Quarter	91	285,008		24.59		25.31		0.72	2.9	%		0.37

Total/Average	300	874,139	$	23.50	$	25.36	$	1.86	8.1	%	$	0.22
Anchor Renewal:
1st Quarter	2	205,869	$	0.64	$	0.64	$	—	0.0	%	$	—
2nd Quarter	3	231,277		3.32		3.32		—	0.0	%		—
3rd Quarter	2	139,437		6.76		7.77		1.01	14.9	%		—

Total/Average	7	576,583	$	3.19	$	3.44	$	0.25	3.6	%	$	—
Anchor Other: ⁽⁴⁾
1st Quarter	7	518,887	$	1.87	$	6.31		N/A	N/A		$	1.46
2nd Quarter	0	—		—		—		N/A	N/A			—
3rd Quarter	3	341,037		—		5.69		N/A	N/A			—

Total/Average	10	859,924	$	1.13	$	6.07		N/A	N/A		$	0.88

⁽¹⁾	These leasing costs are presented as annualized costs per square foot and are spread uniformly over the initial lease term.

⁽²⁾	This category includes newly constructed and recommissioned space.

⁽³⁾	This category includes expansions, relocations and lease extensions.

⁽⁴⁾	This category includes previously leased and newly constructed space.

Page 10

Pennsylvania Real Estate Investment Trust

Summarized Rent Per Square Foot and Occupancy Percentages


	September 30, 2008						September 30, 2007						Change
			Occupancy						Occupancy						Occupancy
	Avg Base Rent		Total ⁽¹⁾		Non-Anchor		Avg Base Rent		Total ⁽¹⁾		Non-Anchor		Avg Base Rent		Total		Non-Anchor
Enclosed Malls weighted average ⁽²⁾	$	30.95	88.8	%	86.5	%	$	30.31	90.0	%	87.4	%	2.1	%	-1.2	%	-0.9	%
Strip and Power Centers weighted average	$	16.10	97.1	%	95.3	%	$	16.04	96.8	%	95.0	%	0.3	%	0.3	%	0.3	%
Retail Portfolio weighted average	$	27.29	89.9	%	87.9	%	$	27.06	90.8	%	88.5	%	0.8	%	-0.9	%	-0.6	%
Consolidated Properties	$	28.41	89.3	%	87.0	%	$	28.23	90.3	%	87.7	%	0.6	%	-1.0	%	-0.7	%
Unconsolidated Properties	$	22.61	95.0	%	92.9	%	$	22.22	95.6	%	93.7	%	1.7	%	-0.6	%	-0.8	%
Same Properties	$	27.54	89.8	%	87.7	%	$	27.06	90.8	%	88.5	%	1.8	%	-1.0	%	-0.8	%
New Properties	$	14.75	99.3	%	98.6	%		N/A	N/A		N/A		N/A		N/A		N/A

⁽¹⁾	Includes approximately 0.9 million square feet of vacant anchor space, as of September 30, 2008, of which 0.7 million square feet has been leased but is not occupied. As of September 30, 2007 total vacant anchor space was approximately 0.8 million square feet.

⁽²⁾	Average base rent for tenants that lease individual spaces of 10,000 square feet or less and pay fixed rent. Average base rent for tenants greater than 10,000 square feet that pay fixed rent was $13.83/sq ft as of September 30, 2008 and $12.92/sq ft as of September 30, 2007.

Page 11

Pennsylvania Real Estate Investment Trust

Mall Sales and Rents Per Square Foot


			September 30, 2008						September 30, 2007						Change
	% of Current Quarter Mall NOI		Avg Base Rent⁽¹⁾		Avg Comp Sales⁽²⁾		Occup. Cost Ratio⁽²⁾		Avg Base Rent⁽¹⁾		Avg Comp Sales⁽²⁾		Occup. Cost Ratio⁽²⁾		Avg Base Rent⁽¹⁾		Avg Comp Sales⁽²⁾		Occup. Cost Ratio⁽²⁾
Sales per square foot over $400	38.1	%
Lehigh Valley Mall			$	40.11	$	484	12.3	%	$	39.72	$	485	11.7	%	1.0	%	0.0	%	0.6	%
Woodland Mall				41.82		481	14.1	%		43.17		458	15.5	%	-3.1	%	5.0	%	-1.4	%
Jacksonville Mall				31.14		463	9.7	%		30.63		455	9.8	%	1.6	%	1.9	%	-0.1	%
Patrick Henry Mall				37.62		457	11.8	%		36.75		484	10.4	%	2.4	%	-5.5	%	1.4	%
Cherry Hill Mall				42.48		450	14.8	%		41.37		480	13.5	%	2.7	%	-6.3	%	1.3	%
Willow Grove Park ^{(3) (4)}				42.26		428	14.2	%		41.52		437	13.9	%	1.8	%	-2.0	%	0.3	%
Moorestown Mall				35.36		424	13.9	%		36.30		430	13.9	%	-2.6	%	-1.5	%	0.0	%
The Mall at Prince Georges				32.77		401	13.5	%		32.39		427	12.6	%	1.2	%	-6.2	%	0.9	%
Sales per square foot between $350 - $400	25.4	%
Capital City Mall				32.86		388	10.8	%		31.76		364	10.9	%	3.5	%	6.4	%	-0.1	%
The Gallery at Market East ^{(3) (4)}				35.35		384	13.0	%		35.27		407	12.6	%	0.2	%	-5.7	%	0.4	%
Viewmont Mall				30.36		375	12.1	%		29.93		374	11.7	%	1.4	%	0.4	%	0.4	%
Springfield Mall				31.71		373	14.8	%		31.89		390	13.0	%	-0.6	%	-4.5	%	1.8	%
Dartmouth Mall				28.84		372	12.2	%		28.90		396	11.7	%	-0.2	%	-6.0	%	0.5	%
Valley View Mall				28.99		364	12.1	%		29.11		367	11.7	%	-0.4	%	-0.8	%	0.4	%
Exton Square Mall				37.35		359	14.8	%		35.79		393	14.1	%	4.4	%	-8.7	%	0.7	%
Francis Scott Key Mall ⁽⁴⁾				26.42		355	10.5	%		25.72		366	10.1	%	2.7	%	-3.0	%	0.4	%
Wyoming Valley Mall				29.90		351	12.4	%		29.44		357	11.8	%	1.6	%	-1.5	%	0.6	%
Sales per square foot between $300 - $349	8.7	%
Valley Mall				24.75		326	12.4	%		23.96		359	10.3	%	3.3	%	-9.0	%	2.1	%
Palmer Park Mall				24.28		309	11.7	%		23.71		320	10.5	%	2.4	%	-3.6	%	1.2	%
Cumberland Mall ⁽⁴⁾				27.10		308	12.3	%		25.95		323	12.0	%	4.4	%	-4.4	%	0.3	%
Magnolia Mall				25.27		302	12.9	%		24.83		306	12.0	%	1.8	%	-1.4	%	0.9	%
Sales per square foot under $300	27.8	%
Logan Valley Mall				26.31		296	12.5	%		25.22		300	11.6	%	4.3	%	-1.2	%	0.9	%
South Mall				24.50		292	11.4	%		22.82		297	10.8	%	7.3	%	-1.7	%	0.6	%
Nittany Mall				22.57		289	10.6	%		21.07		292	10.8	%	7.1	%	-0.8	%	-0.2	%
North Hanover Mall				23.29		287	12.4	%		23.48		285	11.9	%	-0.8	%	0.7	%	0.5	%
Wiregrass Commons Mall				24.80		276	11.3	%		25.08		301	10.7	%	-1.1	%	-8.2	%	0.6	%
Gadsden Mall				24.24		275	11.3	%		23.66		283	10.3	%	2.4	%	-2.9	%	1.0	%
Crossroads Mall				20.99		275	9.5	%		20.61		278	9.5	%	1.9	%	-1.1	%	0.0	%
Washington Crown Center				22.25		274	11.4	%		20.86		279	12.3	%	6.7	%	-2.1	%	-0.9	%
Uniontown Mall				20.92		273	10.7	%		21.12		286	10.5	%	-1.0	%	-4.7	%	0.2	%
New River Valley Mall				24.60		268	10.0	%		24.42		293	9.5	%	0.7	%	-8.5	%	0.5	%
Beaver Valley Mall				24.72		264	14.0	%		23.47		273	14.3	%	5.3	%	-3.3	%	-0.3	%
Orlando Fashion Square				35.34		262	17.1	%		34.89		316	14.5	%	1.3	%	-17.1	%	2.6	%
Plymouth Meeting Mall				32.26		259	13.3	%		30.08		273	13.4	%	7.3	%	-5.0	%	-0.1	%
Lycoming Mall				20.58		257	11.7	%		19.87		258	11.3	%	3.6	%	-0.4	%	0.4	%
Phillipsburg Mall				25.04		255	13.6	%		25.15		272	13.4	%	-0.5	%	-6.3	%	0.2	%
Chambersburg Mall				25.87		242	10.4	%		19.96		236	11.8	%	29.6	%	2.5	%	-1.4	%
Voorhees Town Center				29.52		199	13.1	%		29.66		201	13.0	%	-0.5	%	-0.7	%	0.1	%
Enclosed Malls weighted average			$	30.95	$	351	12.7	%	$	30.31	$	362	12.2	%	2.1	%	-2.8	%	0.5	%
Consolidated Properties			$	30.43	$	342	12.7	%	$	29.79	$	354	12.2	%	2.2	%	-3.4	%	0.5	%
Unconsolidated Properties			$	37.03	$	446	13.0	%	$	36.74	$	448	12.2	%	0.8	%	-0.5	%	0.8	%
Same Properties			$	30.95	$	351	12.7	%	$	30.31	$	362	12.2	%	2.1	%	-2.8	%	0.5	%

⁽¹⁾	Average base rent includes all non-anchor space owned by the Company and leased to tenants that lease individual spaces of 10,000 square feet or less and pay fixed rent.

⁽²⁾	Based on reported sales by all comparable non-anchor tenants that lease individual spaces of 10,000 square feet or less and have occupied the space for at least 24 months.

⁽³⁾	Property contains a vacant anchor space as of September 30, 2007. See schedule on page 21.

⁽⁴⁾	Property contains a vacant anchor space as of September 30, 2008. See schedule on page 21.

Page 12

Pennsylvania Real Estate Investment Trust

Mall Occupancy - Owned GLA


	September 30, 2008				September 30, 2007				Change
	Total		Non-Anchor		Total		Non-Anchor		Total		Non-Anchor
Beaver Valley Mall	92.8	%	84.6	%	93.2	%	85.4	%	-0.4	%	-0.8	%
Capital City Mall	98.2	%	97.0	%	96.8	%	94.5	%	1.4	%	2.5	%
Chambersburg Mall	83.9	%	65.6	%	88.9	%	76.4	%	-5.0	%	-10.8	%
Cherry Hill Mall	88.4	%	88.4	%	89.0	%	89.0	%	-0.6	%	-0.6	%
Crossroads Mall	89.0	%	74.6	%	92.1	%	81.8	%	-3.1	%	-7.2	%
Cumberland Mall ⁽¹⁾	81.9	%	94.5	%	97.8	%	96.1	%	-15.9	%	-1.6	%
Dartmouth Mall	96.4	%	94.1	%	95.8	%	93.1	%	0.6	%	1.0	%
Exton Square Mall	92.5	%	83.6	%	93.1	%	84.8	%	-0.6	%	-1.2	%
Francis Scott Key Mall ⁽²⁾	84.1	%	92.3	%	95.8	%	91.4	%	-11.7	%	0.9	%
Gadsden Mall	91.4	%	78.5	%	91.7	%	80.5	%	-0.3	%	-2.0	%
The Gallery at Market East ⁽³⁾	42.0	%	82.1	%	42.0	%	82.3	%	0.0	%	-0.2	%
Jacksonville Mall	96.4	%	92.9	%	94.6	%	89.1	%	1.8	%	3.8	%
Lehigh Valley Mall	95.7	%	94.1	%	97.6	%	96.5	%	-1.9	%	-2.4	%
Logan Valley Mall	96.2	%	90.9	%	96.9	%	92.5	%	-0.7	%	-1.6	%
Lycoming Mall	97.2	%	94.8	%	96.5	%	93.6	%	0.7	%	1.2	%
Magnolia Mall	97.3	%	93.9	%	97.5	%	94.4	%	-0.2	%	-0.5	%
Moorestown Mall	89.5	%	76.7	%	89.2	%	75.0	%	0.3	%	1.7	%
New River Valley Mall	96.1	%	93.5	%	96.9	%	94.8	%	-0.8	%	-1.3	%
Nittany Mall	93.4	%	86.7	%	93.5	%	86.9	%	-0.1	%	-0.2	%
North Hanover Mall	92.6	%	83.0	%	90.8	%	81.5	%	1.8	%	1.5	%
Orlando Fashion Square	91.2	%	81.3	%	91.1	%	81.1	%	0.1	%	0.2	%
Palmer Park Mall	96.3	%	88.3	%	97.3	%	91.3	%	-1.0	%	-3.0	%
Patrick Henry Mall	97.9	%	95.8	%	98.4	%	97.0	%	-0.5	%	-1.2	%
Phillipsburg Mall	90.8	%	78.8	%	92.4	%	82.6	%	-1.6	%	-3.8	%
Plymouth Meeting Mall	83.0	%	75.7	%	80.3	%	71.2	%	2.7	%	4.5	%
The Mall at Prince Georges	96.7	%	93.1	%	97.1	%	93.9	%	-0.4	%	-0.8	%
South Mall	91.3	%	83.7	%	90.8	%	82.7	%	0.5	%	1.0	%
Springfield Mall	88.1	%	88.1	%	86.9	%	86.9	%	1.2	%	1.2	%
Uniontown Mall	94.2	%	85.3	%	94.2	%	85.3	%	0.0	%	0.0	%
Valley Mall	98.2	%	96.9	%	97.8	%	96.1	%	0.4	%	0.8	%
Valley View Mall	93.2	%	90.5	%	93.2	%	90.5	%	0.0	%	0.0	%
Viewmont Mall	97.1	%	92.5	%	98.5	%	96.1	%	-1.4	%	-3.6	%
Voorhees Town Center	62.3	%	61.7	%	62.0	%	61.3	%	0.3	%	0.4	%
Washington Crown Center	85.4	%	73.1	%	92.2	%	85.7	%	-6.8	%	-12.6	%
Willow Grove Park ⁽³⁾	69.6	%	93.8	%	70.7	%	96.3	%	-1.1	%	-2.5	%
Wiregrass Commons Mall	82.9	%	82.9	%	83.3	%	83.3	%	-0.4	%	-0.4	%
Woodland Mall	86.7	%	84.4	%	86.9	%	84.6	%	-0.2	%	-0.2	%
Wyoming Valley Mall	91.0	%	74.5	%	92.4	%	78.3	%	-1.4	%	-3.8	%

Enclosed Malls weighted average	88.8	%	86.5	%	90.0	%	87.4	%	-1.2	%	-0.9	%

Consolidated Properties	88.5	%	86.0	%	89.8	%	87.0	%	-1.3	%	-1.0	%
Unconsolidated Properties	94.0	%	92.4	%	95.0	%	93.4	%	-1.0	%	-1.0	%
Same Properties	88.8	%	86.5	%	90.0	%	87.4	%	-1.2	%	-0.9	%

⁽¹⁾	The total occupancy percentages as of September 30, 2008 for this property includes the former Value City store location that is currently vacant. The vacant store location has been leased to Burlington Coat Factory, which is expected to open during 1st Quarter 2009.

⁽²⁾

The total occupancy percentage as of September 30, 2008 for this property includes the former Value City store location that is currently vacant. The vacant store location has been leased to Value City Furniture and DSW, which are expected to open in 4th Quarter 2008 and 1st Quarter 2009, respectively.

⁽³⁾

The total occupancy percentages for The Gallery at Market East and Willow Grove Park include the former Strawbridge’s stores that are currently vacant, pending redevelopment. These vacant department stores represents 51.5% and 27.7% of the owned mall GLA for The Gallery at Market East and Willow Grove Park, respectively.

Page 13

Pennsylvania Real Estate Investment Trust

Strip and Power Center Rent Per Square Foot and Occupancy Percentages


	September 30, 2008						September 30, 2007						Change
	Avg		Occupancy				Avg		Occupancy				Avg		Occupancy
	Base Rent		Total		Non-Anchor		Base Rent		Total		Non-Anchor		Base Rent		Total		Non-Anchor
Christiana Center	$	20.53	98.8	%	96.8	%	$	20.83	100.0	%	100.0	%	-1.4	%	-1.2	%	-3.2	%
Creekview Center		15.16	100.0	%	100.0	%		15.15	100.0	%	100.0	%	0.1	%	0.0	%	0.0	%
Crest Plaza		17.84	100.0	%	100.0	%		16.94	96.6	%	93.6	%	5.3	%	3.4	%	6.4	%
The Commons at Magnolia		14.26	95.5	%	91.1	%		13.23	97.4	%	94.9	%	7.8	%	-1.9	%	-3.8	%
Metroplex Shopping Center		19.10	100.0	%	100.0	%		19.10	100.0	%	100.0	%	0.0	%	0.0	%	0.0	%
Monroe Marketplace		19.09	100.0	%	100.0	%		N/A	N/A		N/A		N/A		N/A		N/A
New River Valley Center		14.45	100.0	%	100.0	%		N/A	N/A		N/A		N/A		N/A		N/A
Northeast Tower Center		15.32	96.6	%	94.4	%		15.28	96.6	%	94.4	%	0.3	%	0.0	%	0.0	%
The Court at Oxford Valley		16.43	98.3	%	97.2	%		16.07	97.1	%	95.3	%	2.2	%	1.2	%	1.9	%
Paxton Towne Centre		15.88	100.0	%	100.0	%		15.57	97.9	%	96.8	%	2.0	%	2.1	%	3.2	%
Red Rose Commons		13.86	99.2	%	99.2	%		13.86	99.2	%	99.2	%	0.0	%	0.0	%	0.0	%
Springfield Park		21.79	90.9	%	73.5	%		21.73	90.9	%	73.5	%	0.3	%	0.0	%	0.0	%
Sunrise Plaza		20.37	98.2	%	64.8	%		N/A	N/A		N/A		N/A		N/A		N/A
Whitehall Mall		11.82	88.5	%	75.7	%		11.63	90.9	%	80.6	%	1.7	%	-2.4	%	-4.9	%

Weighted Average	$	16.10	97.1	%	95.3	%	$	16.04	96.8	%	95.0	%	0.3	%	0.3	%	0.2	%

Consolidated Properties	$	16.03	98.8	%	97.9	%	$	16.12	98.1	%	96.9	%	-0.6	%	0.7	%	1.0	%
Unconsolidated Properties	$	16.16	95.5	%	93.2	%	$	15.99	95.9	%	93.8	%	1.0	%	-0.4	%	-0.6	%
Same Properties	$	16.22	96.8	%	95.0	%	$	16.04	96.8	%	95.0	%	1.1	%	0.0	%	0.0	%
New Properties	$	14.75	99.3	%	98.6	%		N/A	N/A		N/A		N/A		N/A		N/A

Page 14

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants (by share of PREIT's Annualized Minimum Rent)

(dollars in thousands)


	Paying Minimum Rent		Paying Percentage of Sales in lieu of Minimum Rent⁽²⁾		Total		Minimum Rent
Tenant ⁽¹⁾	Number of Stores	GLA	Number of Stores	GLA	Total Number of Stores	Total GLA	Annualized Minimum Rent		PREIT’s share of Annualized Minimum Rent ⁽³⁾		Percent of PREIT's Total Retail Minimum Rent
Gap, Inc.	49	620,181	5	40,855	54	661,036	$	13,223	$	12,306	3.96	%
Foot Locker, Inc.	74	381,414	3	9,745	77	391,159		8,784		8,276	2.66	%
JCPenney Company, Inc.	24	2,370,188	6	824,327	30	3,194,515		7,076		7,076	2.28	%
Limited Brands, Inc.	57	275,040	15	47,059	72	322,099		7,395		6,962	2.24	%
American Eagle Outfitters, Inc.	37	201,532	1	5,013	38	206,545		5,662		5,451	1.75	%
Sears Holding Corporation	24	2,796,396	6	881,839	30	3,678,235		5,445		5,302	1.71	%
Zale Corporation	78	61,258	2	457	80	61,715		5,562		5,232	1.68	%
Sterling Jewelers, Inc.	44	67,216	0	—	44	67,216		5,048		4,858	1.56	%
Dick's Sporting Goods	8	385,409	1	50,484	9	435,893		4,975		4,098	1.32	%
Luxottica Group S.p.A.	53	125,849	1	548	54	126,397		4,227		3,892	1.25	%
Regis Corporation	100	124,129	0	—	100	124,129		3,817		3,673	1.18	%
Golden Gate Private Equity ⁽⁴⁾	15	135,985	2	16,472	17	152,457		3,687		3,449	1.11	%
Abercrombie & Fitch Co.	19	130,211	0	—	19	130,211		3,775		3,408	1.10	%
The Finish Line, Inc.	33	152,984	4	19,022	37	172,006		3,425		3,373	1.08	%
Transworld Entertainment Corp.	32	146,614	3	13,026	35	159,640		3,593		3,344	1.08	%
Hallmark Cards, Inc.	39	154,745	5	21,607	44	176,352		3,418		3,310	1.06	%
Borders Group, Inc.	24	191,178	5	22,476	29	213,654		3,419		3,239	1.04	%
Genesco Inc.	58	72,707	1	1,200	59	73,907		3,108		3,042	0.98	%
Aeropostale, Inc.	34	116,565	1	3,891	35	120,456		3,078		2,914	0.94	%
Pacific Sunwear of California, Inc	30	111,027	4	13,671	34	124,698		3,027		2,873	0.92	%

Total Top 20 Tenants	832	8,620,628	65	1,971,692	897	10,592,320	$	101,744	$	96,078	30.90	%

Total Retail Leases					3,370				$	310,924	100.00	%

⁽¹⁾	Tenant includes all brands and concepts of the tenant.

⁽²⁾	Income from lease(s) in which tenant pays percentage of sales in lieu of minimum rent or common area costs are not included in annualized minimum rent.

⁽³⁾	Includes PREIT’s proportionate share of tenant rents from partnership properties based on PREIT’s ownership percentage in the respective partnerships.

⁽⁴⁾	Consists of 17 Express stores.

Page 15

Pennsylvania Real Estate Investment Trust

Lease Expirations as of September 30, 2008

(dollars in thousands except psf amounts)


Non-Anchors⁽¹⁾
		Gross Leasable Area		Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring	Expiring GLA	Percent of Total	Min Rent in Expiring Year	PREIT’s Share of Min Rent in Expiring Year ⁽²⁾	Percent of PREIT’s Total	Average Expiring Minimum Rent psf
Holdover	115	292,769	2.3%	$7,743	$7,046	2.5%	$26.45
2008	111	173,299	1.4%	5,587	5,303	1.9%	32.24
2009	509	1,305,520	10.4%	32,526	31,367	11.0%	24.91
2010	477	1,735,552	13.8%	38,880	37,129	13.0%	22.40
2011	479	1,679,796	13.4%	42,002	38,441	13.5%	25.00
2012	305	1,175,087	9.3%	30,726	28,234	9.9%	26.15
2013	237	853,489	6.8%	19,832	18,537	6.5%	23.24
2014	157	607,832	4.8%	15,510	13,712	4.8%	25.52
2015	178	807,877	6.4%	20,733	18,269	6.4%	25.66
2016	242	1,047,815	8.3%	29,360	26,764	9.4%	28.02
Thereafter	445	2,903,303	23.1%	63,724	59,989	21.1%	21.95

Total/Average	3,255	12,582,339	100.0%	$306,622	$284,791	100.0%	$24.37


Anchors⁽¹⁾
		Gross Leasable Area		Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring ⁽³⁾	Expiring GLA	Percent of Total	Min Rent in Expiring Year	PREIT’s Share of Min Rent in Expiring Year ⁽²⁾	Percent of PREIT’s Total	Average Expiring Minimum Rent psf
2009	5	534,073	4.7%	$1,109	$1,109	3.0%	$2.08
2010	17	1,626,163	14.4%	4,713	4,713	12.9%	2.90
2011	25	2,026,072	17.9%	6,609	5,476	15.0%	3.26
2012	9	889,626	7.9%	2,154	2,117	5.8%	2.42
2013	13	1,030,454	9.1%	4,514	4,514	12.4%	4.38
2014	10	1,011,783	9.0%	3,814	3,352	9.2%	3.77
2015	2	220,398	2.0%	769	769	2.1%	3.49
2016	3	455,432	4.0%	863	863	2.4%	1.90
Thereafter	31	3,507,181	30.9%	14,942	13,566	37.2%	4.26

Total/Average	115	11,301,182	100.0%	$39,488	$36,480	100.0%	$3.49

⁽¹⁾	Only includes owned space.

⁽²⁾	Includes PREIT’s proportionate share of tenant rents from partnership properties based on PREIT’s ownership percentage in the respective partnerships.

⁽³⁾	Accounts for all contiguous anchor space as one lease.

Page 16

Pennsylvania Real Estate Investment Trust

Retail Gross Leasable Area Summary as of September 30, 2008


	Owned GLA
	Anchors	Non-anchors	Total	GLA Not Owned	Total GLA
Malls
Beaver Valley Mall	511,267	445,794	957,061	204,770	1,161,831
Capital City Mall	204,301	284,944	489,245	120,000	609,245
Chambersburg Mall	241,690	212,660	454,350	—	454,350
Cherry Hill Mall	—	559,640	559,640	478,885	1,038,525
Crossroads Mall	256,248	195,528	451,776	—	451,776
Cumberland Mall ⁽¹⁾	283,365	385,585	668,950	273,230	942,180
Dartmouth Mall	208,460	322,621	531,081	140,000	671,081
Exton Square Mall	440,301	369,123	809,424	277,468	1,086,892
Francis Scott Key Mall ⁽¹⁾	291,620	279,573	571,193	139,333	710,526
Gadsden Mall	301,412	202,782	504,194	—	504,194
The Gallery at Market East ⁽²⁾	683,471	397,210	1,080,681	—	1,080,681
Jacksonville Mall	242,115	247,319	489,434	—	489,434
Lehigh Valley Mall	212,000	573,909	785,909	371,986	1,157,895
Logan Valley Mall	454,387	324,131	778,518	—	778,518
Lycoming Mall	333,413	381,825	715,238	120,000	835,238
Magnolia Mall	343,118	278,015	621,133	—	621,133
Moorestown Mall	408,356	332,428	740,784	321,200	1,061,984
New River Valley Mall	175,306	264,959	440,265	—	440,265
Nittany Mall	221,462	215,698	437,160	95,000	532,160
North Hanover Mall	206,792	158,424	365,216	—	365,216
Orlando Fashion Square	491,999	433,884	925,883	155,576	1,081,459
Palmer Park Mall	314,235	143,459	457,694	—	457,694
Patrick Henry Mall	279,619	295,052	574,671	140,000	714,671
Phillipsburg Mall	326,552	252,377	578,929	—	578,929
Plymouth Meeting Mall	188,429	442,669	631,098	214,635	845,733
The Mall at Prince Georges	479,619	434,349	913,968	—	913,968
South Mall	188,858	216,375	405,233	—	405,233
Springfield Mall	—	221,781	221,781	367,176	588,957
Uniontown Mall	421,378	276,786	698,164	—	698,164
Valley Mall	280,549	381,749	662,298	243,400	905,698
Valley View Mall	96,357	247,218	343,575	254,596	598,171
Viewmont Mall	386,262	243,605	629,867	120,000	749,867
Voorhees Town Center	4,404	246,503	250,907	396,783	647,690
Washington Crown Center	245,401	290,460	535,861	140,095	675,956
Willow Grove Park ⁽³⁾	443,430	345,754	789,184	413,121	1,202,305
Wiregrass Commons Mall	—	213,941	213,941	426,838	640,779
Woodland Mall	71,000	410,528	481,528	725,186	1,206,714
Wyoming Valley Mall	592,110	323,653	915,763	—	915,763

Total Malls (38 properties)	10,829,286	11,852,311	22,681,597	6,139,278	28,820,875

Strip and Power Centers
Christiana Center	190,814	111,595	302,409	—	302,409
Creekview Center	—	136,086	136,086	288,916	425,002
Crest Plaza	53,445	60,473	113,918	143,130	257,048
The Commons at Magnolia	50,571	52,723	103,294	126,200	229,494
Metroplex Shopping Center	67,185	410,276	477,461	300,729	778,190
Monroe Marketplace	68,377	5,500	73,877	—	73,877
New River Valley Center	—	163,891	163,891	—	163,891
Northeast Tower Center	119,388	182,536	301,924	175,311	477,235
The Court at Oxford Valley	176,831	280,072	456,903	247,623	704,526
Paxton Towne Centre	151,627	292,833	444,460	273,058	717,518
Red Rose Commons	—	263,452	263,452	199,590	463,042
Springfield Park	83,539	43,432	126,971	145,669	272,640
Sunrise Plaza	132,874	7,100	139,974	—	139,974
Whitehall Mall	294,635	262,443	557,078	—	557,078

Total Strip and Power Centers (14 properties)	1,389,286	2,272,412	3,661,698	1,900,226	5,561,924

CONSOLIDATED PROPERTIES	11,384,382	12,069,358	23,453,740	6,406,731	29,860,471
UNCONSOLIDATED PROPERTIES	834,190	2,055,365	2,889,555	1,632,773	4,522,328
TOTAL PROPERTIES	12,218,572	14,124,723	26,343,295	8,039,504	34,382,799

(1)	Includes vacant former Value City locations, totaling 169,444 square feet.

(2)	Includes 332,200 square feet of anchor space subject to redevelopment plans.

(3)	Includes 218,430 square feet of anchor space under redevelopment.

Page 17

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2008


Properties	Ownership Interest		Date Acquired	Year Built/Last Renovated	Anchors /Major Tenants	Lease Expiration
MALLS
Beaver Valley Mall Monaca, PA	100	%	2002	1970/1991	Boscov’s JCPenney Macy’s Sears	9/30/18 9/30/17 (1) 8/15/11
Capital City Mall Camp Hill, PA	100	%	2003	1974/2005	JCPenney Macy’s Sears	11/30/10 (1) 7/28/09
Chambersburg Mall Chambersburg, PA	100	%	2003	1982	Bon-Ton Burlington Coat Factory JCPenney Sears	1/28/11 1/31/19 3/31/12 2/9/10
Cherry Hill Mall Cherry Hill, NJ	100	%	2003	1961/1990	The Container Store Crate and Barrel JCPenney Macy’s	2/28/18 1/31/23 (1) (1)
Crossroads Mall ⁽²⁾ Beckley, WV	100	%	2003	1981	Belk JCPenney Sears	11/5/09 12/31/11 3/31/11
Cumberland Mall Vineland, NJ	100	%	2005	1973/2003	Best Buy Boscov’s BJ’s Home Depot JCPenney	1/31/16 (1) (1) 10/31/19 11/30/13
Dartmouth Mall Dartmouth, MA	100	%	1997	1971/2000	JCPenney Macy’s Sears	7/31/14 (1) 4/12/16
Exton Square Mall ⁽²⁾ Exton, PA	100	%	2003	1973/2000	Boscov’s JCPenney K-Mart Macy’s Sears	10/31/19 5/31/20 (1) (1) 10/6/19
Francis Scott Key Mall Frederick, MD	100	%	2003	1978/1991	Barnes and Noble JCPenney Macy’s Sears	4/30/17 9/30/11 (1) 7/31/13
Gadsden Mall Gadsden, AL	100	%	2005	1974/1990	Belk JCPenney Sears	7/31/14 1/31/29 3/5/09
The Gallery at Market East ⁽²⁾ Philadelphia, PA	100	%	2003	1977/1990	Burlington Coat Factory	2/28/32
Jacksonville Mall Jacksonville, NC	100	%	2003	1981/1998	Belk JCPenney Sears	8/21/11 8/31/10 8/4/11
Lehigh Valley Mall ⁽³⁾ Allentown, PA	50	%	1973	1977/2007	Barnes and Noble Boscov’s JCPenney Macy’s	10/31/17 (1) (1) 7/31/12
Logan Valley Mall Altoona, PA	100	%	2003	1960/1997	JCPenney Macy’s Sears	1/31/17 1/31/10 10/31/16
Lycoming Mall Pennsdale, PA	100	%	2003	1978/1990	Best Buy Bon-Ton Borders Burlington Coat Factory Dick’s Sporting Goods JCPenney Macy’s Sears	1/31/17 7/31/11 1/31/17 1/31/19 1/31/17 10/31/10 (1) 7/31/13
Magnolia Mall Florence, SC	100	%	1997	1979/2007	Belk JCPenney Sears	1/31/11 3/31/12 10/16/09
Moorestown Mall Moorestown, NJ	100	%	2003	1963/2000	Boscov’s Lord & Taylor Macy’s Sears	10/31/10 (1) (1) 10/5/22
New River Valley Mall Christiansburg, VA	100	%	2003	1988/2007	Belk Dick’s Sporting Goods JCPenney Regal Cinemas Sears	4/19/11 1/31/17 3/31/13 4/30/22 8/2/13
Nittany Mall State College, PA	100	%	2003	1968/1990	Bon-Ton JCPenney Macy’s Sears	1/31/13 7/31/10 (1) 8/31/10

Page 18

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2008 (continued)


Properties	Ownership Interest		Date Acquired	Year Built/Last Renovated	Anchors /Major Tenants	Lease Expiration
North Hanover Mall Hanover, PA	100	%	2003	1967/1999	Dick’s Sporting Goods JCPenney Sears	1/31/18 1/31/11 11/30/09
Orlando Fashion Square ⁽²⁾ Orlando, FL	100	%	2004	1973/2003	Dillard’s JCPenney Macy’s Sears	1/31/14 4/30/13 10/31/71 (1)
Palmer Park Mall Easton, PA	100	%	1972/2003	1972/1998	Bon-Ton Boscov’s	7/25/14 10/31/18
Patrick Henry Mall Newport News, VA	100	%	2003	1988/2005	Borders Dick’s Sporting Goods Dillard’s JCPenney Macy’s	1/31/20 1/31/22 9/22/13 1/31/15 (1)
Phillipsburg Mall Phillipsburg, NJ	100	%	2003	1989/2003	Bon-Ton JCPenney Kohl’s Sears	1/31/10 3/31/10 1/31/25 4/30/14
Plymouth Meeting Mall ⁽²⁾ Plymouth Meeting, PA	100	%	2003	1966/1999	AMC Theater Boscov’s Macy’s	12/31/18 10/31/16 (1)
The Mall at Prince Georges Hyattsville, MD	100	%	1998	1959/2004	JCPenney Macy’s Marshalls Ross Dress for Less Target	7/31/11 10/31/18 9/30/16 1/31/18 1/31/15
South Mall Allentown, PA	100	%	2003	1975/1992	Bon-Ton Stein Mart Steve & Barry’s	1/28/11 10/31/11 1/31/11
Springfield Mall Springfield, PA	50	%	2005	1974/1997	Macy’s	(1)
Uniontown Mall ⁽²⁾ Uniontown, PA	100	%	2003	1972/1990	Bon-Ton Burlington Coat Factory JCPenney Roomful Express Furn. Sears Teletech Customer Care	1/29/11 1/31/19 10/31/10 3/31/10 2/25/13 6/30/13
Valley Mall Hagerstown, MD	100	%	2003	1974/1999	Bon-Ton JCPenney Macy’s Sears	1/31/14 10/3/09 (1) (1)
Valley View Mall La Crosse, WI	100	%	2003	1980/2001	Barnes and Noble Herberger’s JCPenney Macy’s Sears	11/30/16 (1) 7/31/10 (1) (1)
Viewmont Mall Scranton, PA	100	%	2003	1968/2006	JCPenney Macy’s Sears	10/31/10 (1) 12/31/10
Voorhees Town Center ⁽²⁾ Voorhees, NJ	100	%	2003	1970/2007	Boscov’s Macy’s	(1) (1)
Washington Crown Center Washington, PA	100	%	2003	1969/1999	Bon-Ton Gander Mountain Sports Macy’s Sears	1/31/10 7/24/13 (1) 8/17/09
Willow Grove Park Willow Grove, PA	100	%	2000/2003	1982/2001	Bloomingdale’s The Cheesecake Factory Macy’s Sears	(1) 1/31/28 1/31/22 (1)
Wiregrass Commons Mall ⁽²⁾ Dothan, AL	100	%	2003	1986/1999	Dillard’s JCPenney McRae’s Parisian	(1) (1) (1) (1)
Woodland Mall Grand Rapids, MI	100	%	2005	1968/1998	Apple JCPenney Kohl’s Macy’s Sears	6/30/15 (1) 1/31/19 (1) (1)
Wyoming Valley Mall Wilkes-Barre, PA	100	%	2003	1974/2006	Bon-Ton JCPenney Macy’s Sears	1/31/12 4/30/12 1/31/12 8/1/11

Page 19

Pennsylvania Real Estate Investment Trust

Property Information as of September 30, 2008 (continued)


Properties	Ownership Interest		Date Acquired	Year Built/Last Renovated	Anchors /Major Tenants	Lease Expiration
POWER CENTERS
Christiana Center Newark, DE	100	%	1998	1998	Costco Dick’s Sporting Goods	9/30/18 11/30/13
Creekview Center Warrington, PA	100	%	1999	2001	Genuardi’s Lowe’s Target	12/31/21 (1) (1)
Metroplex Shopping Center ⁽³⁾ Plymouth Meeting, PA	50	%	1999	2001	Giant Food Store Lowe’s Target	2/28/21 (1) (1)
Monroe Marketplace Selinsgrove, PA	100	%	2007	2008	Bed, Bath & Beyond Best Buy Giant Food Store Kohl’s Target	1/31/19 10/31/18 10/31/28 12/31/28 (1)
New River Valley Center Christiansburg, VA	100	%	2005	2007	Bed, Bath & Beyond Best Buy Staples	1/31/18 1/31/17 11/30/17
Northeast Tower Center Philadelphia, PA	100	%	1998	1997	Home Depot Raymour & Flanigan Wal-Mart	(1) (1) 1/31/14
The Court at Oxford Valley ⁽³⁾ Langhorne, PA	50	%	1997	1996	Best Buy BJ’s Dick’s Sporting Goods Home Depot Linens ‘n Things	12/31/11 (1) 4/30/11 (1) 2/28/17
Paxton Towne Centre Harrisburg, PA	100	%	1999	2001	Costco Kohl’s Target Weis Markets	(1) 1/25/21 (1) 11/30/20
Red Rose Commons ⁽³⁾ Lancaster, PA	50	%	1998	1998	Home Depot Weis Markets	(1) (1)
Sunrise Plaza Forked River, NJ	100	%	2005	2007	Home Depot	1/31/38
Whitehall Mall ⁽³⁾ Allentown, PA	50	%	1964	1964/1998	Bed, Bath & Beyond Kohl’s Sears	1/31/10 3/9/17 9/18/11
STRIP CENTERS
Crest Plaza Allentown, PA	100	%	1964	1959/2003	Target Weis Market	(1) 10/31/14
The Commons at Magnolia Florence, SC	100	%	1999	1991/2002	Bed, Bath & Beyond Goody’s Target	1/31/13 5/31/12 (1)
Springfield Park Springfield, PA	50	%	1997/1998	1997/1998	Bed, Bath & Beyond LA Fitness Target	1/31/09 3/31/17 (1)

⁽¹⁾	Space is not owned by PREIT.

⁽²⁾	Property is subject to a ground lease.

⁽³⁾	Property is managed by a third party.

Page 20

Pennsylvania Real Estate Investment Trust

2008 Vacant Anchor Summary

Former Tenant

Replacement Tenant(s)

Property

Name

GLA

Date Vacated

Name

GLA

Expected/Actual
Occupancy Date

Date
Decommissioned

Occupied Anchors

Chambersburg Mall

Value City

70,070

1Q08

Burlington Coat Factory

70,070

3Q08

N/A

Gadsden Mall

Belk

60,794

4Q07

JCPenney

88,156

3Q08

2Q08

Lycoming Mall

Value City

69,444

1Q08

Burlington Coat Factory

81,416

3Q08

N/A

Uniontown Mall

Value City

83,560

1Q08

Burlington Coat Factory

83,560

3Q08

N/A

Current Temporary Vacancy

Cumberland Mall

Value City

100,000

1Q08

Burlington Coat Factory

80,000

1Q09

N/A

Francis Scott Key Mall

Value City

69,444

1Q08

Value City Furniture

53,160

4Q08

N/A

DSW Shoe Warehouse

17,587

2Q09

N/A

The Gallery at Market East

Strawbridge’s

560,000

3Q06

Commonwealth of Pennsylvania

224,000

3Q09

N/A

North Hanover Mall

Bon-Ton

60,000

3Q06

Boscov’s

131,408

TBD

1Q07

Springfield Mall

Strawbridge’s⁽¹⁾

179,176

1Q06

Target ⁽¹⁾

195,899

4Q09

N/A

Willow Grove Park

Strawbridge’s

218,430

1Q06

Boscov’s

190,354

TBD

N/A

Future Temporary Vacancy

Wiregrass Commons Mall

McRae’s

94,686

4Q08

Burlington Coat Factory

94,686

2Q09

N/A

⁽¹⁾	Anchor is not owned by PREIT.

Page 21

Pennsylvania Real Estate Investment Trust

Balance Sheet

Proportionate Consolidation Method⁽¹⁾

(in thousands, except per share amounts)


	September 30, 2008									December 31, 2007
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,215,570		$	204,662		$	3,420,232		$	3,074,562		$	203,671		$	3,278,233
Construction in progress		419,533			2,863			422,396			287,116			1,834			288,950
Land held for development		5,616			175			5,791			5,616			172			5,788

TOTAL INVESTMENTS IN REAL ESTATE		3,640,719			207,700			3,848,419			3,367,294			205,677			3,572,971
Accumulated depreciation		(486,076	)		(50,601	)		(536,677	)		(401,502	)		(45,458	)		(446,960	)

NET INVESTMENTS IN REAL ESTATE		3,154,643			157,099			3,311,742			2,965,792			160,219			3,126,011

Investments in partnerships, at equity		36,130			(36,130	)		—			36,424			(36,424	)		—
Other assets:
Cash and cash equivalents		19,452			5,753			25,205			27,925			5,302			33,227
Rents and other receivables ⁽²⁾		44,393			8,860			53,253			49,094			9,755			58,849
Intangible assets, net		80,748			704			81,452			104,136			873			105,009
Deferred costs and other assets, net		87,945			9,393			97,338			80,703			8,452			89,155

TOTAL OTHER ASSETS		268,668			(11,420	)		257,248			298,282			(12,042	)		286,240
TOTAL ASSETS	$	3,423,311		$	145,679		$	3,568,990		$	3,264,074		$	148,177		$	3,412,251

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	1,680,101		$	186,629		$	1,866,730		$	1,643,122		$	188,089		$	1,831,211
Debt premium on mortgage notes payable		4,623			—			4,623			13,820			—			13,820
Exchangeable senior notes		287,500			—			287,500			287,500			—			287,500
Credit Facility		380,000			—			380,000			330,000			—			330,000
Senior Unsecured Term Loan		170,000			—			170,000			—			—			—
Distributions in excess of partnership investments		45,982			(45,982	)		—			49,166			(49,166	)		—
Other liabilities		122,590			5,032			127,622			127,591			9,254			136,845

TOTAL LIABILITIES		2,690,796			145,679			2,836,475			2,451,199			148,177			2,599,376

MINORITY INTEREST		54,366			—			54,366			55,256			—			55,256

Shareholders’ equity:
Shares of beneficial interest at $1 par		39,397			—			39,397			39,134			—			39,134
Capital contributed in excess of par		827,037			—			827,037			818,966			—			818,966
Accumulated other comprehensive loss		(14,833	)		—			(14,833	)		(6,968	)		—			(6,968	)
Distributions in excess of net income		(173,452	)		—			(173,452	)		(93,513	)		—			(93,513	)

TOTAL SHAREHOLDERS’ EQUITY		678,149			—			678,149			757,619			—			757,619

TOTAL LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY	$	3,423,311		$	145,679		$	3,568,990		$	3,264,074		$	148,177		$	3,412,251

⁽¹⁾

Total includes PREIT’s proportionate share of partnership assets and liabilities “grossed up” to reflect the Company’s share of the total assets and liabilities of the underlying properties. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s equity in these properties.

⁽²⁾	Total includes straight line rent of $27.4 million ($24.1 million wholly owned, $3.3 million partnership) as of September 30, 2008 and $25.1 million ($21.8 million wholly owned, $3.3 million partnership) as of December 31, 2007.

Page 22

Pennsylvania Real Estate Investment Trust

Balance Sheet

Property Type ⁽¹⁾

(in thousands, except per share amounts)


	September 30, 2008												December 31, 2007
	Malls			Strip and Power Centers			Corporate, Development and Other Properties			Total			Malls			Strip and Power Centers			Corporate, Development and Other Properties			Total
ASSETS
Investments in real estate:
Investments in real estate, at cost	$	3,060,183		$	328,113		$	37,727		$	3,426,023		$	2,943,305		$	318,541		$	22,175		$	3,284,021
Construction in progress		269,610			70,294			82,492			422,396			176,607			18,718			93,625			288,950

TOTAL INVESTMENT IN REAL ESTATE		3,329,793			398,407			120,219			3,848,419			3,119,912			337,259			115,800			3,572,971
Accumulated depreciation		(459,831	)		(74,713	)		(2,133	)		(536,677	)		(379,637	)		(66,210	)		(1,113	)		(446,960	)

NET INVESTMENTS IN REAL ESTATE		2,869,962			323,694			118,086			3,311,742			2,740,275			271,049			114,687			3,126,011

Other assets:
Cash and cash equivalents		18,548			1,338			5,319			25,205			19,076			1,723			12,428			33,227
Rents and other receivables ⁽²⁾		35,069			12,421			5,763			53,253			42,095			12,370			4,384			58,849
Intangible assets, net		69,148			—			12,304			81,452			93,204			—			11,805			105,009
Deferred costs and other assets, net		64,222			11,643			21,473			97,338			49,889			9,847			29,419			89,155

TOTAL OTHER ASSETS		186,987			25,402			44,859			257,248			204,264			23,940			58,036			286,240
TOTAL ASSETS	$	3,056,949		$	349,096		$	162,945		$	3,568,990		$	2,944,539		$	294,989		$	172,723		$	3,412,251

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	1,666,423		$	192,307		$	8,000		$	1,866,730		$	1,741,022		$	90,189		$	—		$	1,831,212
Debt premium on mortgage notes payable		4,623			—			—			4,623			13,561			259			—			13,820
Exchangeable senior notes		—			—			287,500			287,500			—			—			287,500			287,500
Credit Facility		—			—			380,000			380,000			—			—			330,000			330,000
Senior Unsecured Term Loan		—			—			170,000			170,000			—			—			—			—
Other liabilities		62,118			1,287			64,217			127,622			63,998			1,693			71,154			136,845

TOTAL LIABILITIES		1,733,164			193,594			909,717			2,836,475			1,818,581			92,141			688,654			2,599,376

MINORITY INTEREST		—			—			54,366			54,366			—			—			55,256			55,256

Shareholders’ equity:
Shares of beneficial interest at $1 par		—			—			39,397			39,397			—			—			39,134			39,134
Capital contributed in excess of par		—			—			827,037			827,037			—			—			818,966			818,966
Accumulated other comprehensive loss		—			—			(14,833	)		(14,833	)		—			—			(6,968	)		(6,968	)
Distributions in excess of net income		—			—			(173,452	)		(173,452	)		—			—			(93,513	)		(93,513	)
Net investment		1,323,785			155,502			(1,479,287	)		—			1,125,958			202,848			(1,328,806	)		—

TOTAL SHAREHOLDERS’ EQUITY		1,323,785			155,502			(801,138	)		678,149			1,125,958			202,848			(571,187	)		757,619

TOTAL LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY	$	3,056,949		$	349,096		$	162,945		$	3,568,990		$	2,944,539		$	294,989		$	172,723		$	3,412,251

⁽¹⁾

⁽²⁾	Total includes straight line rent of $27.4 million ($24.1 million wholly owned, $3.3 million partnership) as of September 30, 2008 and $25.1 million ($21.8 million wholly owned, $3.3 million partnership) as of December 31, 2007.

Page 23

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾

(in thousands)


	September 30, 2008								December 31, 2007
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Malls
Beaver Valley Mall	$	67,648	$	26	$	12,690	$	54,984	$	66,992	$	30	$	10,482	$	56,540
Capital City Mall		94,684		5		13,732		80,957		94,265		384		11,100		83,549
Chambersburg Mall		37,213		9		5,314		31,908		36,356		—		4,260		32,096
Cherry Hill Mall		270,856		77,558		31,743		316,671		233,449		33,621		25,144		241,926
Crossroads Mall		34,250		—		5,698		28,552		34,094		—		4,754		29,340
Cumberland Mall		58,934		6,988		5,026		60,896		58,385		—		3,871		54,514
Dartmouth Mall		61,595		—		21,169		40,426		61,088		—		19,178		41,910
Exton Square Mall		146,314		—		18,764		127,550		146,247		—		16,256		129,991
Francis Scott Key Mall		70,855		4,911		9,976		65,790		70,056		—		8,038		62,018
Gadsden Mall		58,140		157		4,669		53,628		52,262		1,522		3,667		50,117
The Gallery at Market East		80,308		43,385		10,763		112,930		80,273		30,210		9,002		101,481
Jacksonville Mall		73,461		1,736		10,015		65,182		68,594		3,255		8,193		63,656
Logan Valley Mall		95,016		—		15,269		79,747		93,781		—		12,802		80,979
Lycoming Mall		74,057		116		9,530		64,643		72,843		357		7,555		65,645
Magnolia Mall		86,220		—		17,921		68,299		82,063		3,036		15,338		69,761
Moorestown Mall		86,439		2,137		16,424		72,152		80,669		3,637		13,805		70,501
New River Valley Mall		56,921		300		7,851		49,370		56,562		123		5,499		51,186
Nittany Mall		42,266		—		6,076		36,190		41,964		—		5,073		36,891
North Hanover Mall		38,743		15,993		5,069		49,667		37,075		15,758		4,017		48,816
Orlando Fashion Square		113,710		180		11,797		102,093		113,134		154		9,412		103,876
Palmer Park Mall		34,508		—		10,329		24,179		34,484		—		9,606		24,878
Patrick Henry Mall		139,000		103		20,151		118,952		138,263		—		16,143		122,120
Phillipsburg Mall		52,816		115		7,057		45,874		52,304		21		5,822		46,503
Plymouth Meeting Mall		79,231		55,752		13,526		121,457		64,699		38,473		10,894		92,278
The Mall at Prince Georges		99,952		132		25,196		74,888		99,641		—		22,192		77,449
South Mall		29,312		—		3,936		25,376		28,905		—		3,268		25,637
Uniontown Mall		38,076		119		6,322		31,873		36,782		—		5,275		31,507
Valley Mall		91,122		92		14,158		77,056		89,003		995		11,786		78,212
Valley View Mall		66,976		2		8,596		58,382		66,570		—		7,073		59,497
Viewmont Mall		86,558		—		10,600		75,958		85,520		36		8,519		77,037
Voorhees Town Center		43,154		22,160		5,311		60,003		24,104		18,659		3,407		39,356
Washington Crown Center		40,241		—		9,028		31,213		40,183		—		7,536		32,647
Westgate Anchor Pad		3,450		—		—		3,450		3,450		—		—		3,450
Willow Grove Park		188,368		27,763		32,520		183,611		186,092		25,204		27,888		183,408
Wiregrass Commons Mall		40,984		7,894		5,224		43,654		37,031		234		4,357		32,908
Woodland Mall		180,289		697		15,836		165,150		179,785		45		11,398		168,432
Wyoming Valley Mall		104,494		1		13,366		91,129		102,861		420		10,628		92,653

Total Consolidated Malls		2,966,161		268,331		440,652		2,793,840		2,849,829		176,174		363,238		2,662,765
Unconsolidated Malls
Lehigh Valley Mall		39,429		320		13,159		26,590		39,011		143		11,841		27,313
Springfield Mall		54,593		959		6,020		49,532		54,465		290		4,558		50,197

Total Unconsolidated Malls		94,022		1,279		19,179		76,122		93,476		433		16,399		77,510

TOTAL MALLS	$	3,060,183	$	269,610	$	459,831	$	2,869,962	$	2,943,305	$	176,607	$	379,637	$	2,740,275

⁽¹⁾

Page 24

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾(continued)

(in thousands)


	September 30, 2008								December 31, 2007
	Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Strip and Power Centers
Christiana Center	$	40,935	$	—	$	9,652	$	31,283	$	40,935	$	—	$	8,796	$	32,139
Creekview Center		19,098		—		6,293		12,805		19,098		—		5,605		13,493
Crest Plaza		16,517		—		4,285		12,232		16,432		—		3,801		12,631
The Commons at Magnolia		10,119		—		3,358		6,761		10,119		—		2,526		7,593
The Plaza at Magnolia		—		1,908		—		1,908		—		523		—		523
Monroe Marketplace		—		51,574		—		51,574		—		23,559		—		23,559
New River Valley Center		26,634		1		972		25,663		21,378		4,816		164		26,030
Northeast Tower Center		33,630		—		6,450		27,180		33,630		—		5,804		27,826
Paxton Towne Centre		56,084		54		12,259		43,879		54,056		9		11,062		43,003
Sunrise Plaza		20,541		16,751		866		36,426		18,519		13,893		199		32,213

Total Consolidated Strip and Power Centers		223,558		70,288		44,135		249,711		214,167		42,800		37,957		219,010
Unconsolidated Strip and Power Centers
Metroplex Shopping Center		42,168		—		11,814		30,354		42,025		—		10,656		31,369
The Court at Oxford Valley		27,847		6		7,217		20,636		27,847		—		6,757		21,090
Red Rose Commons		11,755		—		2,858		8,897		11,753		—		2,613		9,140
Whitehall Mall		15,689		—		7,527		8,162		15,689		—		7,166		8,523
Springfield Park		7,096		—		1,162		5,934		7,060		—		1,061		5,999

Total Unconsolidated Strip and Power Centers		104,555		6		30,578		73,983		104,374		—		28,253		76,121

TOTAL STRIP AND POWER CENTERS	$	328,113	$	70,294	$	74,713	$	323,694	$	318,541	$	42,800	$	66,210	$	295,131

Development Properties
Pitney Road Plaza	$	—	$	8,738	$	—	$	8,738	$	—	$	—	$	—	$	—
Springhills		—		30,659		—		30,659		—		29,378		—		29,378
White Clay Point		—		41,517		—		41,517		—		38,764		—		38,764

Total Development Properties		—		80,914		—		80,914		—		68,142		—		68,142
Unconsolidated Development Properties
Pavilion at Market East		6,085		1,578		844		6,819		5,821		1,401		806		6,416

Total Unconsolidated Development Properties		6,085		1,578		844		6,819		5,821		1,401		806		6,416
Other Properties
One Cherry Hill Plaza		15,256		—		776		14,480		—		—		—		—
P&S Building		1,339		—		390		949		1,339		—		307		1,032
Plymouth Commons		9,256		—		123		9,133		9,227		—		—		9,227
Land held for development - consolidated		5,616		—		—		5,616		5,616		—		—		5,616
Land held for development - unconsolidated		175		—		—		175		172		—		—		172

Total Other Properties	$	31,642	$	—	$	1,289	$	30,353	$	16,354	$	—	$	307	$	16,047

TOTAL INVESTMENT IN REAL ESTATE	$	3,426,023	$	422,396	$	536,677	$	3,311,742	$	3,284,021	$	288,950	$	446,960	$	3,126,011

CONSOLIDATED PROPERTIES	$	3,221,186	$	419,533	$	486,076	$	3,154,643	$	3,080,178	$	287,116	$	401,502	$	2,965,792
UNCONSOLIDATED PROPERTIES		204,837		2,863		50,601		157,099		203,843		1,834		45,458		160,219

TOTAL INVESTMENT IN REAL ESTATE	$	3,426,023	$	422,396	$	536,677	$	3,311,742	$	3,284,021	$	288,950	$	446,960	$	3,126,011

⁽¹⁾

Page 25

Pennsylvania Real Estate Investment Trust

Property Redevelopment and Repositioning Summary as of September 30, 2008


NAME OF PROJECT LOCATION	PREIT’s PROJECTED SHARE OF COST	PREIT’S INVESTMENT TO DATE	EXPECTED RETURN ON INCREMENTAL INVESTMENT	CONSTRUCTION START DATE	EXPECTED CONSTRUCTION COMPLETION
ENCLOSED MALL	(in millions)	(in millions)
Cherry Hill Mall Cherry Hill, NJ	$211.0	$134.2	7.1%	2007	2009
-Opened Crate & Barrel and The Container Store in November 2007 on two outparcels totaling 59,000 sf; -Opening a two-level, 138,000 sf Nordstrom (anticipated spring of 2009); -Opening 88,000 sf of new in-line retail space in the former food court and Strawbridge’s area; -Opening 72,000 sf from a combination of a Bistro Row and restaurants; -Net increase in total property GLA will be approximately 95,000 sf.
Gadsden Mall Gadsden, AL	5.1	2.2	8.0%	2007	2008
-Opened 88,000 sf JCPenney in September 2008 in former 61,000 sf Belk store; -Net increase in total property GLA is approximately 27,000 sf.
The Gallery at Market East Philadelphia, PA	80.6	43.4	7.7%	2008	2010
-Opening 224,000 sf of office space on the 4th, 5th, and 6th floors of the vacant former Strawbridges store to be occupied by the Commonwealth of Pennsylvania, in the 3rd Quarter 2009; -Remaining 332,000 sf is to be used for future retail development.
Jacksonville Mall Jacksonville, NC	7.7	6.4	8.4%	2007	2008
-Phase I - Opened 28,000 sf Barnes & Noble (13,000 sf of new GLA) in April 2008; -Phase II - Opened 6,000 sf Red Robin restaurant in September 2008 and 10,000 sf of retail in 4th Quarter 2008; exterior mall renovation, new mall entrance and pedestrian plaza.
Moorestown Mall Moorestown, NJ	14.5	10.1	8.2%	2007	2008
-Opened 16,000 sf Lane Furniture in September 2007 (8,000 sf of new GLA); -Opened 15,000 sf Eastern Mountain Sports in May 2008 (4,000 sf of new GLA); -Opened Pei Wei Asian Diner and Potbelly Sandwich Works, totaling approximately 6,000 sf of outparcel space, in July 2008; -Creating three spaces with exterior frontage totaling approximately 6,000 sf of recommissioned space (new GLA); -Updating the entrances and facades; -Net increase in property GLA will be approximately 24,000 sf.
North Hanover Mall Hanover, PA	35.1	24.0	TBD	2007	TBD
-In August 2008, Boscov’s, Inc. filed for Chapter 11 bankruptcy protection. Until the reorganization process has run its course, it will not be known whether the Boscov’s lease will be affirmed or rejected. As a result, the expected return on incremental investment and completion date for this project cannot be determined at this time; -Opened 50,000 sf Dick’s Sporting Goods in October 2007 in the former 63,000 sf Black Rose Antiques location (net decrease in GLA of 13,000 sf); -Relocated and downsized Black Rose Antiques to 15,000 sf of previously vacant space in adjacent strip center; -Net increase in property GLA will be approximately 77,000 sf.

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Pennsylvania Real Estate Investment Trust

Property Redevelopment and Repositioning Summary as of September 30, 2008 (continued)


NAME OF PROJECT LOCATION	PREIT’s PROJECTED SHARE OF COST	PREIT’S INVESTMENT TO DATE	EXPECTED RETURN ON INCREMENTAL INVESTMENT	CONSTRUCTION START DATE	EXPECTED CONSTRUCTION COMPLETION
ENCLOSED MALL	(in millions)	(in millions)
Plymouth Meeting Mall Plymouth Meeting, PA	96.6	73.2	8.1%	2007	2009
-Opened P.F. Chang’s China Bistro and California Pizza Kitchen, totaling 13,000 sf, in May 2008; -Opened 10,000 sf Redstone American Grill in June 2008; -Opened 35,000 sf Dave and Buster’s in July 2008: -Opening 4,000 sf Citibank outparcel in 4th Quarter 2008; -Opening 10,000 sf Benihana in 4th Quarter 2008; -Opening 39,000 sf of retail space and a 65,000 sf Whole Foods Market opening in 2009; -Net increase in property GLA will be approximately 142,000 sf.
Willow Grove Park Willow Grove, PA	40.2	36.4	TBD	2007	TBD
-In August 2008, Boscov’s, Inc. filed for Chapter 11 bankruptcy protection. Until the reorganization process has run its course, it will not be known whether the Boscov’s lease will be affirmed or rejected. As a result, the expected return on incremental investment and completion date for this project cannot be determined at this time; -Included in the 22,000 sf of restaurants is a 10,000 sf The Cheesecake Factory that opened in September 2007; -Net reduction in property GLA will be approximately 13,000 sf.
Wiregrass Commons Mall Dothan, AL	12.1	8.6	8.3%	2008	2009
-Purchased 65,000 sf former Parisian store and expanding to an 85,000 sf Belk opening in 4th Quarter 2008; -Former McRae’s anchor will be filled with a 95,000 sf Burlington Coat Factory, with expected delivery in 4th Quarter 2008 and opening in 3rd Quarter 2009; -Interior mall renovation in 4th Quarter 2008.
MIXED USE
Voorhees Town Center Voorhees, NJ	79.3	50.5	9.2%	2007	2010
-Phase I - Reduced mall GLA by 470,000 sf to 654,000 sf; -Opened 50,000 sf office building in May 2008; -Opened 10,000 sf Learning Center in August 2008; -Opening 16,000 sf of outparcel space; -Phase IIA - Opening a mixed use town center of approximately 150,000 sf; -Phase IIB - Opening 425 residential units which are expected to be constructed by our development partners and its affiliates; -Net reduction in property GLA will be approximately 244,000 sf.

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Pennsylvania Real Estate Investment Trust

Development Property Summary as of September 30, 2008


NAME OF PROJECT LOCATION	TOTAL PROJECTED PROPERTY GLA (sq ft) ⁽¹⁾	PREIT’s PROJECTED SHARE OF COST	PREIT’s INVESTMENT	RETURN ON INCREMENTAL INVESTMENT	CONSTRUCTION START DATE	EXPECTED DATE OF COMPLETION	% LEASED	% OCCUPIED
OPERATING PROPERTIES WITH DEVELOPMENT ACTIVITY
POWER CENTERS		(in millions)	(in millions)
Monroe Marketplace ⁽²⁾ Selinsgrove, PA	611,000	$73.9	$51.6	8.0%	2007	2010	76%	53%
-Phase I - Opened Kohl’s and Red Robin in the September 2008. Opened Best Buy, Target, Giant and Bed, Bath & Beyond in October 2008. Opening Dick’s Sporting Goods, Famous Footwear, and Starbucks in the 4th Quarter of 2008; -Phase II - The balance of the power center, containing approximately 201,000 sf of outparcel and in-line space, is expected to open in 2010.
Sunrise Plaza ⁽²⁾ Forked River, NJ	274,000	39.9	37.4	6.0%	2006	2010	92%	84%
-Opened 131,000 sf Home Depot in October 2007; -Opened a 96,000 sf Kohls in October 2008; -Opening a 20,000 sf Staples in 1st Quarter 2009; -Balance of the property will be comprised of in-line stores and outparcels.
DEVELOPMENT PROPERTIES
POWER CENTERS
Pitney Road Plaza Lancaster, PA	227,000	20.3	9.1	9.4%	2008	2009	95%	0%
-Opening approximately 46,000 sf Best Buy in 3rd Quarter 2009; -Opening approximately 169,000 sf Lowe’s in 3rd Quarter 2009; -Balance of the center will be comprised of outparcels totaling approximately 12,000sf.
MIXED USE
White Clay Point Landenberg, PA	496,000	56.5	41.0	7.3%	2008	2010	0%	0%
-The planned development includes retail and other mixed uses, including a residential component, to be completed in multiple phases. Phase I consists of 496,000 sf of retail use with an expected completion date of 2010. The incremental costs and returns for the remaining phases will be determined when the development plans for these phases are finalized.
Springhills Gainesville, FL	TBD	TBD	30.7	TBD	TBD	TBD	0%	0%
-540 acres of land were acquired in 2006. Site development is subject of litigation commenced by the Company in June 2007 following action by the Alachua County Board of Supervisors refusing to authorize the Company’s development plans.
OTHER
Pavilion at Market East Philadelphia, PA	TBD	TBD	1.6	TBD	TBD	TBD	N/A	0%
-The Partnership’s development plans for the Pavilion at Market East are under review. The Company retains a 40% interest in the partnership.

⁽¹⁾	Includes tenants that purchased their respective land.

⁽²⁾	Monroe Marketplace and Sunrise Plaza are considered operating properties, and are not counted as development properties.

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Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)


	Three months ended September 30, 2008									Nine months ended September 30, 2008
	Consolidated			Unconsolidated			Total			Consolidated		Unconsolidated		Total
Redevelopment projects with incremental GLA and/or anchor replacement	$	55,860		$	(402	)	$	55,458		$	185,436	$	1,041	$	186,477
New development projects		18,648			21			18,669			38,756		358		39,114
Renovation with no incremental GLA		(349	)		—			(349	)		125		—		125
Tenant allowances		7,685			103			7,788			11,963		192		12,155
Recurring capital expenditures:
CAM expenditures		3,896			95			3,991			7,660		151		7,811
Non-CAM expenditures		1,593			198			1,791			2,671		204		2,875

Total recurring capital expenditures		5,489			293			5,782			10,331		355		10,686

Total	$	87,333		$	15		$	87,348		$	246,611	$	1,946	$	248,557

Page 29

Pennsylvania Real Estate Investment Trust

Debt Analysis as of September 30, 2008

(in thousands)


	Outstanding Debt ⁽¹⁾
	Fixed Rate⁽²⁾			% of Total Indebtedness		Variable Rate			% of Total Indebtedness		Total			% of Total Indebtedness
Consolidated Mortgage Notes Payable	$	1,676,724		61.9	%	$	8,000		0.3	%	$	1,684,724		62.2	%
Unconsolidated Mortgage Notes Payable		73,379		2.7	%		113,250		4.2	%		186,629		6.9	%
Exchangeable Senior Notes		287,500		10.6	%		—		0.0	%		287,500		10.6	%
Credit Facility		—		0.0	%		380,000		14.0	%		380,000		14.0	%
Senior Unsecured Term Loan⁽³⁾		130,000		4.8	%		40,000		1.5	%		170,000		6.3	%

TOTAL OUTSTANDING DEBT	$	2,167,603		80.0	%	$	541,250		20.0	%	$	2,708,853		100.0	%

AVERAGE INTEREST RATE		5.60	%				3.74	%				5.23	%

⁽¹⁾	Includes debt premium

⁽²⁾	Includes variable rate debt swapped to fixed rate debt.

⁽³⁾	The $40 million variable rate Senior Unsecured Term Loan was swapped to a fixed rate of 5.15% in October 2008.


		Average Debt Balance
		Mortgage Debt ⁽¹⁾			REMIC ^(1) (2)			Total Mortgages			Credit Facility		Senior Unsecured Term Loan		Exchangeable Senior Notes		TOTAL
Beginning Balance	6/30/2008	$	1,548,744		$	404,995		$	1,953,739		$	355,000	$	—	$	287,500	$	2,596,239
Credit Facility Borrowings, net			—			—			—			25,000		—		—		25,000
Senior Unsecured Term Loan			—			—			—			—		170,000		—		170,000
Logan Valley Mall New Mortgage			68,000			—			68,000			—		—		—		68,000
Patrick Henry Mall New Mortgage			97,000			—			97,000			—		—		—		97,000
Paxton Mortgage			54,000						54,000									54,000
Wyoming Valley Mall New Mortgage			65,000			—			65,000			—		—		—		65,000
Jacksonville Mall New Mortgage			56,265			—			56,265			—		—		—		56,265
Debt Amortization ⁽³⁾			(17,656	)		(404,995	)		(422,651	)		—		—		—		(422,651	)

Ending Balance	9/30/2008	$	1,871,353		$	—		$	1,871,353		$	380,000	$	170,000	$	287,500	$	2,708,853

Weighted Average Balance		$	1,643,873		$	311,662		$	1,955,536		$	380,685	$	40,326	$	287,500	$	2,664,046

⁽¹⁾	Includes debt premium.

⁽²⁾	The REMIC was repaid in full on September 9, 2008.

⁽³⁾	Includes the amortization of debt premium and balloon payments.


	Debt Maturities ⁽¹⁾
Year	Scheduled Amortization		Debt Premium Amortization		Mortgage Balance at Maturity		Credit Facility		Senior Unsecured Term Loan		Exchangeable Senior Notes		Total Debt
2008	$	4,487	$	596	$	137,413	$	—	$	—	$	—	$	142,496
2009		18,109		1,283		145,434		—		—		—		164,826
2010		19,639		1,175		20,860		380,000		170,000		—		591,674
2011		20,236		1,153		143,788		—		—		—		165,177
2012		17,509		416		363,346		—		—		287,500		668,771
2013		12,005		—		299,723		—		—		—		311,728
2014		11,417		—		—		—		—		—		11,417
Thereafter		11,722		—		641,042		—		—		—		652,764

	$	115,124	$	4,623	$	1,751,606	$	380,000	$	170,000	$	287,500	$	2,708,853

⁽¹⁾	The weighted average period to mortgage maturity is 4.88 years. Excludes debt premium.


	Weighted Average Mortgage Interest Rates
	Interest Rate				Marked to Market Interest Rate (GAAP)
Year	Balance		Interest Rate		Balance		Interest Rate
2008	$	137,725	6.35	%	$	137,725	5.02	%
2009		146,324	4.63	%		146,324	4.53	%
2010		21,450	5.72	%		21,450	5.72	%
2011		147,894	6.74	%		147,894	6.74	%
2012		387,948	6.08	%		387,948	5.69	%
2013		312,416	4.95	%		312,416	4.95	%
Thereafter		712,973	4.79	%		712,973	4.79	%

Total	$	1,866,730	5.74	%	$	1,866,730	5.56	%

Page 30

Pennsylvania Real Estate Investment Trust

Debt Schedule as of September 30, 2008

(in thousands)


	Proportionate Share⁽¹⁾						Interest Rate		Marked to Market Interest Rate (GAAP)		Annual Debt Service		Balance at Maturity		Maturity Date
	Mortgage Debt		Debt Premium		Total		Interest Rate		Marked to Market Interest Rate (GAAP)		Annual Debt Service		Balance at Maturity		Maturity Date
Fixed Rate Mortgage Debt
Exton Square Mall	$	93,305	$	267	$	93,572	6.95	%	5.00	%	$	8,102	$	93,034	2008
Whitehall Mall		6,170		—		6,170	6.77	%	6.77	%		641		6,129	2008
Palmer Park Mall		15,823		—		15,823	6.77	%	6.77	%		1,661		15,674	2009
Red Rose Commons		12,607		—		12,607	7.66	%	7.66	%		1,220		12,425	2009
Valley View Mall		34,894		118		35,012	6.15	%	5.75	%		2,773		34,335	2009
Creekview Center ⁽²⁾⁽³⁾		19,928		—		19,928	5.56	%	5.56	%		1,112		19,448	2010
Springfield Park		1,522		—		1,522	7.79	%	7.79	%		203		1,412	2010
Christiana Center ⁽²⁾⁽⁴⁾		45,000		—		45,000	5.87	%	5.87	%		2,639		45,000	2011
Metroplex Shopping Center		30,342		—		30,342	7.25	%	7.25	%		2,681		28,785	2011
The Court at Oxford Valley		18,552		—		18,552	8.02	%	8.02	%		2,319		16,003	2011
Paxton Towne Centre ⁽²⁾⁽⁴⁾		54,000		—		54,000	5.84	%	5.84	%		3,152		54,000	2011
Beaver Valley Mall		44,832		—		44,832	7.36	%	7.36	%		3,972		42,266	2012
Capital City Mall		50,491		2,837		53,328	7.61	%	5.50	%		4,603		47,898	2012
Cherry Hill Mall		191,597		—		191,597	5.42	%	5.42	%		13,510		177,689	2012
Cherry Hill Mall Supplemental Loan		55,000		—		55,000	5.51	%	5.51	%		3,030		53,003	2012
Cumberland Mall Loan #1		41,842		1,401		43,243	6.50	%	5.40	%		3,413		38,782	2012
Pavilion East Associates ⁽²⁾		4,186		—		4,186	7.71	%	7.71	%		252		3,708	2012
Dartmouth Mall		64,213		—		64,213	4.95	%	4.95	%		4,484		57,594	2013
Jacksonville Mall ⁽²⁾⁽⁴⁾		56,265		—		56,265	5.83	%	5.83	%		3,277		56,265	2013
Logan Valley Mall ⁽²⁾⁽⁴⁾		68,000		—		68,000	5.79	%	5.79	%		3,939		68,000	2013
Moorestown Mall		58,938		—		58,938	4.95	%	4.95	%		4,115		52,863	2013
Wyoming Valley Mall ⁽²⁾⁽⁴⁾		65,000		—		65,000	5.85	%	5.85	%		3,803		65,000	2013
Magnolia Mall		63,107		—		63,107	5.33	%	5.33	%		4,413		54,965	2015
Patrick Henry Mall		97,000		—		97,000	6.34	%	6.34	%		7,743		83,210	2015
Willow Grove Park		153,938		—		153,938	5.65	%	5.65	%		11,083		133,548	2015
Valley Mall		89,356		—		89,356	5.49	%	5.49	%		5,014		78,835	2016
Woodland Mall		156,500		—		156,500	5.58	%	5.58	%		8,397		140,484	2016
Cumberland Mall Loan #2		3,072		—		3,072	5.00	%	5.00	%		206		—	2017
The Mall at Prince Georges		150,000		—		150,000	5.51	%	5.51	%		8,270		150,000	2017

Total Fixed Rate Mortgage Debt		1,745,480		4,623		1,750,103	5.89	%	5.69	%		120,027		1,630,355

Variable Rate Mortgage Debt
Springfield Mall ⁽⁵⁾		38,250		—		38,250	4.80	%	4.80	%		1,370		38,250	2008
Lehigh Valley Mall ⁽⁶⁾		75,000		—		75,000	3.05	%	3.05	%		4,190		75,000	2009
One Cherry Hill Plaza		8,000		—		8,000	3.79	%	3.79	%		303		8,000	2009

Total Variable Rate Mortgage Debt		121,250		—		121,250	3.65	%	3.65	%		5,863		121,250

Total Mortgage Debt	$	1,866,730	$	4,623	$	1,871,353	5.74	%	5.56	%	$	125,890	$	1,751,605

CONSOLIDATED MORTGAGES	$	1,680,101	$	4,623	$	1,684,724	5.81	%	5.60	%	$	113,014	$	1,569,893
UNCONSOLIDATED MORTGAGES		186,629		—		186,629	5.16	%	5.16	%		12,876		181,712
EXCHANGEABLE SENIOR NOTES		287,500		—		287,500	4.00	%	4.00	%		11,500		287,500
CREDIT FACILITY		380,000		—		380,000	3.68	%	3.68	%		13,976		—
SENIOR UNSECURED TERM LOAN - SWAPPED		130,000		—		130,000	5.33	%	5.33	%		6,923		130,000
SENIOR UNSECURED TERM LOAN - VARIABLE⁽⁷⁾		40,000		—		40,000	4.65	%	4.65	%		1,860		40,000

Total	$	2,704,230	$	4,623	$	2,708,853	5.23	%	5.10	%	$	160,149	$	2,209,105

⁽¹⁾	Includes 100% of debt from consolidated properties and our share of debt from unconsolidated properties, based on our ownership percentage.

⁽²⁾	The mortgage has been swapped to a fixed interest rate presented.

⁽³⁾	The mortgage has three, one-year renewal options.

⁽⁴⁾	The mortgage has two, one-year renewal options.

⁽⁵⁾	The mortgage has three, one-year renewal options. The first option was exercised in December 2007.

⁽⁶⁾	The mortgage has three, one-year renewal options. The second option was exercised in July 2008 for the period August 2008 to August 2009.

⁽⁷⁾	The $40 million variable rate Senior Unsecured Term Loan was swapped to a fixed rate of 5.15% in October 2008.

Page 31

Pennsylvania Real Estate Investment Trust

Shareholder Information


Ten Largest Institutional Shareholders:	Common Shares Held ⁽¹⁾
Barclays Global Investors NA (California)	3,402,136
Vanguard Group, Inc.	3,086,900
ING Clarion Real Estate Securities LP	2,151,353
RREEFAmerica LLC	1,660,906
State Street Global Advisors	1,499,322
Catapult Capital Management LLC	1,115,000
Pacific Heights Asset Management LLC	750,000
LaSalle Investment Management Securities LP	710,257
JPmorgan Asset Management, Inc.	644,565
Fidelity Management & Research	638,000

*TOTAL of Ten Largest Institutional:*	15,658,439
*TOTAL of all Institutional Holders:*	29,234,724
*Ten Largest as % of Total Institutional:*	53.6	%

⁽¹⁾	Based on 13F and 13G filings as of 9/30/08 or most recent filings.


Breakdown of Share & Unit Ownership: Shares Held	Most Recent	% of Outstanding		December 31, 2007
Institutional ⁽¹⁾	29,234,724	70.2	%	29,753,729
Retail ⁽²⁾	8,253,598	19.8	%	6,629,028
Insiders ⁽³⁾	4,147,196	10.0	%	4,965,503

*TOTAL*	41,635,518	100.0	%	41,348,260

⁽¹⁾	Based on 13F and 13G filings as of 9/30/08 or most recent filings.

⁽²⁾	Retail ownership equals total shares outstanding minus institutional and insider ownership.

⁽³⁾	Insider holdings as of April 1, 2008 (Shares and OP Units only). Excludes 143,250 exercisable options. See proxy statement dated April 18, 2008 for more details.

Page 32

Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations, which is a non-GAAP measure, as income before gains (losses) on sales of operating properties and extraordinary items (computed in accordance with GAAP); plus real estate depreciation; plus or minus adjustments for unconsolidated partnerships to reflect funds from operations on the same basis. We compute Funds From Operations by taking the amount determined pursuant to the NAREIT definition and subtracting dividends on preferred shares (“FFO”). Funds From Operations is a commonly used measure of operating performance and profitability in the REIT industry, and we use FFO as a supplemental non-GAAP measure to compare our Company’s performance to that of our industry peers. Similarly, FFO per diluted share is a measure that is useful because it reflects the dilutive impact of outstanding convertible securities. In addition, we use FFO and FFO per diluted share as a performance measure for determining bonus amounts earned under certain of our performance-based executive compensation programs.

The Company computes FFO in accordance with standards established by NAREIT, less dividends on preferred shares for periods during which the Company had preferred shares outstanding, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than the Company.

FFO does not include gains (losses) on operating real estate assets, which are included in the determination of net income in accordance with GAAP. Accordingly, FFO is not a comprehensive measure of our operating cash flows. In addition, since FFO does not include depreciation on real estate assets, FFO may not be a useful performance measure when comparing our operating performance to that of other non-real estate commercial enterprises. We compensate for these limitations by using FFO in conjunction with other GAAP financial performance measures, such as net income and net cash provided by operating activities, and other non-GAAP financial performance measures such as net operating income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is it indicative of funds available for the Company’s cash needs, including its ability to make cash distributions.

The Company believes that net income is the most directly comparable GAAP measurement to FFO. The Company believes that FFO is helpful to management and investors as a measure of operating performance because it excludes various items included in net income that do not relate to or are not indicative of operating performance, such as various non-recurring items that are considered extraordinary under GAAP, gains on sales of real estate and depreciation and amortization of real estate.

Net Operating Income (NOI)

Net operating income (“NOI”), which is a non-GAAP measure, is derived from revenues (determined in accordance with GAAP) minus property operating expenses (determined in accordance with GAAP). Net operating income is a non-GAAP measure. It does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity; nor is it indicative of funds available for the Company’s cash needs, including its ability to make cash distributions. The Company believes that net income is the most directly comparable GAAP measurement to net operating income.

The Company believes that net operating income 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. Net operating income excludes general and administrative expenses, management company revenues, interest income, interest expense, depreciation and amortization, income from discontinued operations and gains on sales of interests in real estate.

Funds Available for Distribution (FAD)

FAD, which some companies refer to as Cash Available for Distributions (CAD) or Adjusted FFO (AFFO), is a measure of a real estate company’s cash flows generated by operations and capacity to pay dividends. The Company calculates FAD by starting with FFO and subtracting (1) straight-line rents, (2) normalized recurring capital expenditures that are capitalized but necessary to maintain our properties, (3) operational tenant allowances, (4) capitalized leasing costs, (5) amortization of debt premium, and (6) amortization of above- and below-market lease intangibles.

The Company believes that net income is the most directly comparable GAAP measurement to FAD. The Company believes FAD provides a meaningful indicator of its ability to fund cash needs and to make cash distributions to equity owners. In addition, the Company believes that to further understand its liquidity, FAD should be compared with its cash flow from operating activities determined in accordance with GAAP, as presented in its consolidated financial statements. The computation of FAD may not be comparable to FAD reported by other REITs or real estate companies and FAD does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, or as an alternative to net cash flow from operating activities (determined in accordance with GAAP), as a measure of our liquidity.

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