PENNSYLVANIA REAL ESTATE INVESTMENT TRUST - FORM 8-K - EX-99.1 - QUARTERLY SUPPLEMENTAL DISCLOSURE DATED DECEMBER 31, 2010

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8-K - FORM 8-K - PENNSYLVANIA REAL ESTATE INVESTMENT TRUST	d8k.htm

Exhibit 99.1

Pennsylvania Real Estate Investment Trust ^®

LOGO

Supplemental Financial and Operating Information

Quarter Ended December 31, 2010

www.preit.com

NYSE: PEI

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

December 31, 2010

Table of Contents


*Introduction*

Company Information			1
Press Release Announcements			2
Market Capitalization and Capital Resources			3

*Operating Results*

Statement of Operations-Proportionate Consolidation Method - Quarters Ended December 31, 2010 and December 31, 2009			4
Statement of Operations-Proportionate Consolidation Method - Years Ended December 31, 2010 and December 31, 2009			5
Net Operating Income - Quarters Ended December 31, 2010 and December 31, 2009			6
Net Operating Income - Years Ended December 31, 2010 and December 31, 2009			7
Computation of Earnings Per Share			8
Funds From Operations and Funds Available for Distribution - Quarters Ended December 31, 2010 and December 31, 2009			9
Funds From Operations and Funds Available for Distribution - Years Ended December 31, 2010 and December 31, 2009			10

*Operating Statistics*

Leasing Activity Summary			11
Summarized Rent Per Square Foot and Occupancy Percentages			12
Enclosed Mall Sales and Rent Per Square Foot			13
Enclosed Mall Occupancy - Owned GLA			14
Strip and Power Center Rent Per Square Foot and Occupancy Percentages			15
Top Twenty Tenants			16
Lease Expirations			17
Gross Leasable Area Occupancy Summary			18
Property Information			19

*Balance Sheet*

Balance Sheet - Proportionate Consolidation Method			22
Balance Sheet - Property Type			23
Investment in Real Estate			24
Capital Expenditures			26
Debt Analysis			27
Debt Schedule			28
Selected Debt Ratios			29
Shareholder Information			30
Definitions			31

FORWARD-LOOKING STATEMENTS

This Quarterly Supplemental 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: PREIT’s substantial debt and high leverage ratio; constraining leverage, interest and tangible net worth covenants under the 2010 Credit Facility, as well as capital application provisions and limits on PREIT’s ability to pay distributions on our common shares; PREIT’s ability to refinance its existing indebtedness when it matures on favorable terms, or at all; PREIT’s ability to raise capital, including through the issuance of equity or equity-related securities if market conditions are favorable, through joint ventures or other partnerships, through sales of properties, or through other actions; PREIT’s short- and long-term liquidity position; the effects on PREIT of dislocations and liquidity disruptions in the capital and credit markets; the current economic downturn and its effect on employment, consumer confidence and consumer spending; tenant business and solvency and leasing decisions and the value and potential impairment of PREIT’s properties; and PREIT’s ability to maintain and increase property occupancy, sales and net effective rental rates, including at recently redeveloped properties. Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the estimates set forth in press releases or other disclosures, or that PREIT’s returns on its developments, redevelopments or acquisitions will be consistent with the estimates outlined in 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, 2009. 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, 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 December 31, 2010, the Company’s 49 properties included 38 shopping malls, eight strip and power centers, and three development properties. These properties are located in 13 states in the eastern half of the United States, primarily in the Mid Atlantic region. The operating retail properties have a total of approximately 33.2 million square feet. PREIT is headquartered in Philadelphia, Pennsylvania.

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



First Quarter 2011		April 28, 2011

Research Coverage


Company	Analyst	Phone Number
Bank of America/Merrill Lynch	Craig Schmidt	(646) 855-3640
	Jeffery Spector	(646) 855-1363
	Lindsay Schroll	(646) 855-1829

Barclays Capital	Ross Smotrich	(212) 526-2306
	Ryan Bennett	(212) 526-5309

Citi Investment Research	Michael Bilerman	(212) 816-1383
	Quentin Velleley	(212) 816-6981

Green Street Advisors	Jim Sullivan	(949) 640-8780
	Cedrik Lachance	(949) 640-8780

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

Keefe, Bruyette, & Woods	Ben Yang	(415) 591-1631

Stifel Nicolaus	Nathan Isbee	(443) 224-1346

Page 1

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

February 17, 2011 - PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.

October 29, 2010 - PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.

Acquisitions, dispositions, development and redevelopment activities:

October 28, 2010 - PREIT announced it signed an agreement with the Township of Voorhees to relocate the municipal offices of Voorhees, New Jersey to Voorhees Town Center.

Other activities:

February 2, 2011 - PREIT scheduled its Fourth Quarter 2010 earnings call for Wednesday, February 23, 2011.

January 18, 2011 - PREIT announced the tax status of its 2010 distributions.

November 12, 2010 - PREIT announced it will present at the REITWorld 2010 conference.

October 14, 2010 - PREIT scheduled its Third Quarter 2010 earnings call for Thursday, November 4, 2010.

NOTE: The press release announcements are available on the Company’s website at www.preit.com.

Page 2

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources


	Quarter Ended December 31,						Year Ended December 31,
	2010			2009			2010			2009			2008
TRADING INFORMATION
High Price	$	15.93		$	8.95		$	17.35		$	9.13		$	29.70
Low Price	$	11.58		$	6.80		$	8.35		$	2.20		$	2.21
MARKET CAPITALIZATION (in thousands, except per share amounts)
EQUITY CAPITALIZATION
Common Shares Outstanding		55,436			44,615			55,436			44,615			39,468
OP Units Outstanding		2,329			2,329			2,329			2,329			2,201

Total Shares and OP Units Outstanding		57,765			46,944			57,765			46,944			41,669

Market Price (closing price at end of period)	$	14.53		$	8.46		$	14.53		$	8.46		$	7.45
Equity Market Capitalization - Shares and OP Units	$	839,327		$	397,148		$	839,327		$	397,148		$	310,437
DEBT CAPITALIZATION ⁽¹⁾
Secured Debt Balance ⁽²⁾	$	2,265,572		$	1,956,193		$	2,265,572		$	1,956,193		$	1,940,334
Unsecured Debt Balance ⁽³^{) (4)}		136,900			792,900			136,900			792,900			811,500

Debt Capitalization		2,402,472			2,749,093			2,402,472			2,749,093			2,751,834

TOTAL MARKET CAPITALIZATION	$	3,241,799		$	3,146,241		$	3,241,799		$	3,146,241		$	3,062,271

*Equity Capitalization/Total Market Capitalization*		25.9	%		12.6	%		25.9	%		12.6	%		10.1	%
*Debt Capitalization/Total Market Capitalization*		74.1	%		87.4	%		74.1	%		87.4	%		89.9	%
*Unsecured Debt Balance/Total Debt*		5.7	%		28.8	%		5.7	%		28.8	%		29.5	%
DISTRIBUTIONS PER COMMON SHARE
Ordinary Income	$	0.150		$	0.040		$	0.600		$	0.630		$	2.254
Capital Gain		—			0.110			—			0.110			—
Return of Capital/Non-Taxable		—			—			—			—			0.026

Distributions per share	$	0.150		$	0.150		$	0.600		$	0.740		$	2.280

Annualized Dividend Yield ⁽⁵⁾		4.1	%		7.1	%		4.1	%		8.7	%		30.6	%
CAPITAL RESOURCES
Cash and Cash Equivalents	$	47,107		$	77,147		$	47,107		$	77,147		$	12,711
Revolving Credit Facility		150,000			500,000			150,000			500,000			500,000
Amount Outstanding		—			(486,000	)		—			(486,000	)		(400,000	)
Letters of Credit		(1,534	)		(3,030	)		(1,534	)		(3,030	)		(6,428	)

Available Revolving Credit Facility ⁽⁶⁾		148,466			10,970			148,466			10,970			93,572

TOTAL	$	195,573		$	88,117		$	195,573		$	88,117		$	106,283

Shelf Registration	$	831,812		$	1,000,000		$	1,000,000		$	1,000,000		$	1,000,000

⁽¹⁾	Amounts exclude debt discount on exchangeable notes and debt premium on mortgage loans.

⁽²⁾	The secured debt balance includes $347,200 in Term Loans as of December 31, 2010.

⁽³⁾	The unsecured debt balance includes $170,000 in senior unsecured 2008 Term Loan for the periods ended December 31, 2009 and December 31, 2008, and Credit Facility balances of $486,000 for the period ended December 31, 2009 and $400,000 for the period ended December 31, 2008.

⁽⁴⁾	The unsecured debt balance includes exchangeable notes of $136,900 for the periods ended December 31, 2010 and December 31, 2009, and $241,500 for the period ended December 31, 2008.

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

⁽⁶⁾	The available Credit Facility borrowings are subject to covenants that may restrict amounts that can be borrowed.

Page 3

Pennsylvania Real Estate Investment Trust

Statement of Operations - Quarters Ended December 31, 2010 and December 31, 2009

Proportionate Consolidation Method

(in thousands)


	Quarter ended December 31, 2010											Quarter ended December 31, 2009
	GAAP			Share of unconsolidated partnerships ⁽¹⁾			Discontinued operations		Total			GAAP			Share of unconsolidated partnerships ⁽¹⁾			Discontinued operations			Total
REVENUE:
Base rent	$	78,944		$	6,527		$	—	$	85,471		$	77,028		$	6,517		$	2,864		$	86,409
Expense reimbursements		31,897			2,659			—		34,556			35,502			2,584			572			38,658
Percentage rent		3,292			74			—		3,366			2,978			65			—			3,043
Lease termination revenue		478			—			—		478			518			—			—			518
Other real estate revenue		6,473			540			—		7,013			6,609			471			42			7,122

Real estate revenue		121,084			9,800			—		130,884			122,635			9,637			3,478			135,750
Interest and other income		1,145			—			—		1,145			943			—			—			943

Total revenue		122,229			9,800			—		132,029			123,578			9,637			3,478			136,693

EXPENSES:
Operating expenses:
CAM and real estate taxes		(35,583	)		(2,049	)		—		(37,632	)		(37,988	)		(2,176	)		(736	)		(40,900	)
Utilities		(5,978	)		(219	)		—		(6,197	)		(5,506	)		(229	)		(2	)		(5,737	)
Other operating expenses		(7,413	)		(684	)		—		(8,097	)		(8,472	)		(761	)		(76	)		(9,309	)

Total operating expenses		(48,974	)		(2,952	)		—		(51,926	)		(51,966	)		(3,166	)		(814	)		(55,946	)

Depreciation and amortization		(38,915	)		(2,074	)		—		(40,989	)		(43,740	)		(2,089	)		(1,323	)		(47,152	)
Other expenses:
General and administrative expenses		(10,712	)		—			—		(10,712	)		(9,122	)		—			—			(9,122	)
Impairment of assets and project costs		(199	)		—			—		(199	)		(74,562	)		—			—			(74,562	)
Income taxes and other expenses		74			—			—		74			49			—			—			49

Total other expenses		(10,837	)		—			—		(10,837	)		(83,635	)		—			—			(83,635	)

Interest expense, net ⁽²⁾		(34,142	)		(2,617	)		—		(36,759	)		(33,462	)		(1,813	)		(756	)		(36,031	)
Gain on extinguishment of debt		—			—			—		—			13,076			—			—			13,076

Total expenses		(132,868	)		(7,643	)		—		(140,511	)		(199,727	)		(7,068	)		(2,893	)		(209,688	)

Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate		(10,639	)		2,157			—		(8,482	)		(76,149	)		2,569			585			(72,995	)
Equity in income of partnerships		2,157			(2,157	)		—		—			2,569			(2,569	)		—			—
Gains on sales of real estate		—			—			—		—			2,657			—			—			2,657

Loss from continuing operations		(8,482	)		—			—		(8,482	)		(70,923	)		—			585			(70,338	)
Discontinued operations:
Operating results from discontinued operations		—			—			—		—			585			—			(585	)		—
(Adjustment to gains) gains on sales of discontinued operations		(56	)		—			—		(56	)		6,106			—			—			6,106

(Loss) income from discontinued operations		(56	)		—			—		(56	)		6,691			—			(585	)		6,106

Net loss		(8,538	)		—			—		(8,538	)		(64,232	)		—			—			(64,232	)
Less: net loss attributable to noncontrolling interests		507			—			—		507			3,138			—			—			3,138

Net loss attributable to PREIT	$	(8,031	)	$	—		$	—	$	(8,031	)	$	(61,094	)	$	—		$	—		$	(61,094	)

⁽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⁾	Net of capitalized interest expense of $602 and $995 for the quarter ended December 31, 2010 and 2009, respectively.

Page 4

Pennsylvania Real Estate Investment Trust

Statement of Operations - Years Ended December 31, 2010 and December 31, 2009

Proportionate Consolidation Method

(in thousands)


	Year ended December 31, 2010												Year ended December 31, 2009
	GAAP			Share of unconsolidated partnerships ⁽¹⁾			Discontinued operations			Total			GAAP			Share of unconsolidated partnerships ⁽¹⁾			Discontinued operations			Total
REVENUE:
Base rent	$	293,640		$	25,663		$	7,739		$	327,042		$	288,542		$	25,180		$	13,227		$	326,949
Expense reimbursements		131,877			10,568			1,750			144,195			135,627			10,179			3,085			148,891
Percentage rent		5,585			136			—			5,721			5,357			136			—			5,493
Lease termination revenue		3,028			275			—			3,303			2,154			120			—			2,274
Other real estate revenue		16,235			1,450			8			17,693			16,591			1,681			135			18,407

Real estate revenue		450,365			38,092			9,497			497,954			448,271			37,296			16,447			502,014
Interest and other income		5,276			—			—			5,276			3,035			—			—			3,035

Total revenue		455,641			38,092			9,497			503,230			451,306			37,296			16,447			505,049

EXPENSES:
Operating expenses:
CAM and real estate taxes		(142,767	)		(8,361	)		(1,904	)		(153,032	)		(139,274	)		(8,199	)		(3,557	)		(151,030	)
Utilities		(26,030	)		(908	)		(7	)		(26,945	)		(24,066	)		(889	)		(47	)		(25,002	)
Other operating expenses		(26,476	)		(2,498	)		(196	)		(29,170	)		(27,628	)		(2,701	)		(187	)		(30,516	)

Total operating expenses		(195,273	)		(11,767	)		(2,107	)		(209,147	)		(190,968	)		(11,789	)		(3,791	)		(206,548	)

Depreciation and amortization		(161,592	)		(8,656	)		(3,907	)		(174,155	)		(161,690	)		(8,144	)		(6,055	)		(175,889	)
Other expenses:
General and administrative expenses		(38,973	)		—			—			(38,973	)		(37,558	)		—			—			(37,558	)
Impairment of assets and project costs		(1,057	)		—			—			(1,057	)		(75,012	)		—			—			(75,012	)
Income taxes and other expenses		(80	)		—			—			(80	)		(169	)		—			—			(169	)

Total other expenses		(40,110	)		—			—			(40,110	)		(112,739	)		—			—			(112,739	)

Interest expense, net ⁽²⁾		(142,730	)		(8,619	)		(1,926	)		(153,275	)		(131,236	)		(7,261	)		(2,328	)		(140,825	)
Gain on extinguishment of debt		—			—			—			—			27,047			—			—			27,047

Total expenses		(539,705	)		(29,042	)		(7,940	)		(576,687	)		(569,586	)		(27,194	)		(12,174	)		(608,954	)

Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate		(84,064	)		9,050			1,557			(73,457	)		(118,280	)		10,102			4,273			(103,905	)
Equity in income of partnerships		9,050			(9,050	)		—			—			10,102			(10,102	)		—			—
Gains on sales of real estate		—			—			—			—			4,311			—			—			4,311

Loss from continuing operations		(75,014	)		—			1,557			(73,457	)		(103,867	)		—			4,273			(99,594	)
Discontinued operations
Operating results from discontinued operations		1,557			—			(1,557	)		—			4,273			—			(4,273	)		—
Gains on sales of discontinued operations		19,094			—			—			19,094			9,503			—			—			9,503

Income from discontinued operations		20,651			—			(1,557	)		19,094			13,776			—			(4,273	)		9,503

Net loss		(54,363	)		—			—			(54,363	)		(90,091	)		—			—			(90,091	)
Less: net loss attributable to noncontrolling interests		2,436			—			—			2,436			4,353			—			—			4,353

Net loss attributable to PREIT	$	(51,927	)	$	—		$	—		$	(51,927	)	$	(85,738	)	$	—		$	—		$	(85,738	)

⁽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⁾	Net of capitalized interest expense of $2,561 and $5,522 for the year ended December 31, 2010 and 2009, respectively.

Page 5

Pennsylvania Real Estate Investment Trust

Net Operating Income ⁽¹⁾ - Quarter Ended December 31, 2010 and 2009

(in thousands)


	Quarter ended December 31, 2010									Quarter ended December 31, 2009
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	85,083		$	388		$	85,471		$	83,141		$	3,268		$	86,409
Expense reimbursements		34,544			12			34,556			38,075			583			38,658
Percentage rent		3,366			—			3,366			3,043			—			3,043
Lease termination revenue		478			—			478			518			—			518
Other real estate revenue		6,890			123			7,013			6,916			206			7,122

TOTAL REAL ESTATE REVENUE		130,361			523			130,884			131,693			4,057			135,750

Operating expenses:
CAM and real estate taxes		(37,215	)		(417	)		(37,632	)		(39,802	)		(1,098	)		(40,900	)
Utilities		(6,197	)		—			(6,197	)		(5,734	)		(3	)		(5,737	)
Other operating expenses		(8,058	)		(39	)		(8,097	)		(9,171	)		(138	)		(9,309	)

TOTAL OPERATING EXPENSES		(51,470	)		(456	)		(51,926	)		(54,707	)		(1,239	)		(55,946	)

NET OPERATING INCOME	$	78,891		$	67		$	78,958		$	76,986		$	2,818		$	79,804


	Quarter ended December 31, 2010									Quarter ended December 31, 2009
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	79,505		$	5,578		$	85,083		$	77,769		$	5,372		$	83,141
Expense reimbursements		33,442			1,102			34,544			36,750			1,325			38,075
Percentage rent		3,328			38			3,366			3,034			9			3,043
Lease termination revenue		473			5			478			518			—			518
Other real estate revenue		6,821			69			6,890			6,862			54			6,916

TOTAL REAL ESTATE REVENUE		123,569			6,792			130,361			124,933			6,760			131,693

Operating expenses:
CAM and real estate taxes		(35,974	)		(1,241	)		(37,215	)		(38,407	)		(1,395	)		(39,802	)
Utilities		(6,133	)		(64	)		(6,197	)		(5,672	)		(62	)		(5,734	)
Other operating expenses		(7,879	)		(179	)		(8,058	)		(8,911	)		(260	)		(9,171	)

TOTAL OPERATING EXPENSES		(49,986	)		(1,484	)		(51,470	)		(52,990	)		(1,717	)		(54,707	)

NET OPERATING INCOME	$	73,583		$	5,308		$	78,891		$	71,943		$	5,043		$	76,986

⁽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⁾ - Years Ended December 31, 2010 and 2009

(in thousands)


	Year Ended December 31, 2010									Year Ended December 31, 2009
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	317,724		$	9,318		$	327,042		$	312,021		$	14,928		$	326,949
Expense reimbursements		142,395			1,800			144,195			145,756			3,135			148,891
Percentage rent		5,721			—			5,721			5,493			—			5,493
Lease termination revenue		3,303			—			3,303			2,274			—			2,274
Other real estate revenue		17,202			491			17,693			17,542			865			18,407

TOTAL REAL ESTATE REVENUE		486,345			11,609			497,954			483,086			18,928			502,014

Operating expenses:
CAM and real estate taxes		(149,685	)		(3,347	)		(153,032	)		(146,022	)		(5,008	)		(151,030	)
Utilities		(26,938	)		(7	)		(26,945	)		(24,956	)		(46	)		(25,002	)
Other operating expenses		(28,788	)		(382	)		(29,170	)		(29,998	)		(518	)		(30,516	)

TOTAL OPERATING EXPENSES		(205,411	)		(3,736	)		(209,147	)		(200,976	)		(5,572	)		(206,548	)

NET OPERATING INCOME	$	280,934		$	7,873		$	288,807		$	282,110		$	13,356		$	295,466


	Year Ended December 31, 2010									Year Ended December 31, 2009
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	295,114		$	22,610		$	317,724		$	290,182		$	21,839		$	312,021
Expense reimbursements		137,320			5,075			142,395			140,767			4,989			145,756
Percentage rent		5,660			61			5,721			5,410			83			5,493
Lease termination revenue		3,298			5			3,303			2,274			—			2,274
Other real estate revenue		16,972			230			17,202			17,321			221			17,542

TOTAL REAL ESTATE REVENUE		458,364			27,981			486,345			455,954			27,132			483,086

Operating expenses:
CAM and real estate taxes		(144,329	)		(5,356	)		(149,685	)		(140,828	)		(5,194	)		(146,022	)
Utilities		(26,684	)		(254	)		(26,938	)		(24,710	)		(246	)		(24,956	)
Other operating expenses		(28,095	)		(693	)		(28,788	)		(29,045	)		(953	)		(29,998	)

TOTAL OPERATING EXPENSES		(199,108	)		(6,303	)		(205,411	)		(194,583	)		(6,393	)		(200,976	)

NET OPERATING INCOME	$	259,256		$	21,678		$	280,934		$	261,371		$	20,739		$	282,110

⁽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)


	Quarter Ended December 31,						Year Ended December 31,
	2010			2009			2010			2009
Loss from continuing operations	$	(8,482	)	$	(70,923	)	$	(75,014	)	$	(103,867	)
Noncontrolling interest in continuing operations		496			2,969			3,216			4,114
Dividends on unvested restricted shares		(174	)		(162	)		(615	)		(797	)

Loss from continuing operations used to calculate earnings per share - basic and diluted	$	(8,160	)	$	(68,116	)	$	(72,413	)	$	(100,550	)

(Loss) income from discontinued operations	$	(56	)	$	6,691		$	20,651		$	13,776
Noncontrolling interest in discontinued operations		2			168			(788	)		239

(Loss) income from discontinued operations used to calculate earnings per share - basic and diluted	$	(54	)	$	6,859		$	19,863		$	14,015

Basic loss per share
Loss from continuing operations	$	(0.15	)	$	(1.57	)	$	(1.43	)	$	(2.45	)
Income from discontinued operations		(0.00	)		0.16			0.39			0.34

	$	(0.15	)	$	(1.41	)	$	(1.04	)	$	(2.11	)

Diluted loss per share
Loss from continuing operations	$	(0.15	)	$	(1.57	)	$	(1.43	)	$	(2.45	)
Income from discontinued operations		(0.00	)		0.16			0.39			0.34

	$	(0.15	)	$	(1.41	)	$	(1.04	)	$	(2.11	)

Weighted average common shares outstanding		55,386			44,434			51,733			41,894
Weighted average unvested restricted shares		(1,163	)		(1,077	)		(1,091	)		(941	)

Weighted average shares outstanding - basic		54,223			43,357			50,642			40,953
Weighted average effect of common share equivalents ⁽¹⁾		—			—			—			—

Total weighted average shares outstanding - diluted		54,223			43,357			50,642			40,953

⁽¹⁾

The Company had net losses from continuing operations for all periods presented. Therefore, the effect of common share equivalents of 781 and 49 for the quarter ended December 31, 2010 and 2009, respectively, and 502 and 12 for year ended December 31, 2010 and 2009, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive.

Page 8

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(In thousands, except share and per share amounts)


	Quarter Ended December 31, 2010											Quarter Ended December 31, 2009
FUNDS FROM OPERATIONS (FFO)	Consolidated			Share of unconsolidated partnerships			Discontinued operations		Total			Consolidated			Share of unconsolidated partnerships			Discontinued operations			Total
Real Estate Revenue ⁽¹⁾	$	121,084		$	9,800		$	—	$	130,884		$	122,635		$	9,637		$	3,478		$	135,750
Operating Expenses		(48,974	)		(2,952	)		—		(51,926	)		(51,966	)		(3,166	)		(814	)		(55,946	)

NET OPERATING INCOME		72,110			6,848			—		78,958			70,669			6,471			2,664			79,804
General and administrative expenses		(10,712	)		—			—		(10,712	)		(9,122	)		—			—			(9,122	)
Impairment of assets and project costs		(199	)		—			—		(199	)		(74,562	)		—			—			(74,562	)
Interest and other income		1,145			—			—		1,145			943			—			—			943
Income taxes and other expenses		74			—			—		74			49			—			—			49
Interest expense, net		(34,142	)		(2,617	)		—		(36,759	)		(33,462	)		(1,813	)		(756	)		(36,031	)
Gain on extinguishment of debt		—			—			—		—			13,076			—			—			13,076
Gains on sales of non operating real estate		—			—			—		—			2,657			—			—			2,657
Depreciation on non real estate assets		(324	)		—			—		(324	)		(648	)		—			—			(648	)

FUNDS FROM OPERATIONS		27,952			4,231			—		32,183			(30,400	)		4,658			1,908			(23,834	)
Depreciation on real estate assets		(38,591	)		(2,074	)		—		(40,665	)		(43,092	)		(2,089	)		(1,323	)		(46,504	)
Equity in income of partnerships		2,157			(2,157	)		—		—			2,569			(2,569	)		—			—
Income in discontinued operations		—			—			—		—			585			—			(585	)		—
(Adjustment to gains) gains on sale of discontinued operations		(56	)		—			—		(56	)		6,106			—			—			6,106

Net loss	$	(8,538	)	$	—		$	—	$	(8,538	)	$	(64,232	)	$	—		$	—		$	(64,232	)


⁽¹⁾ Total includes the non-cash effect of straight-line rent of $(47) and $48 for the three months ended December 31, 2010 and 2009, respectively.

FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	27,952		$	4,231		$	—	$	32,183		$	(30,400	)	$	4,658		$	1,908		$	(23,834	)
Adjustments:
Straight line rent		(197	)		244			—		47			(9	)		4			(43	)		(48	)
Recurring capital expenditures		(8,216	)		(127	)		—		(8,343	)		(7,743	)		(289	)		—			(8,032	)
Tenant allowances		(7,664	)		7			—		(7,657	)		(3,699	)		(51	)		—			(3,750	)
Capitalized leasing costs		(1,336	)		—			—		(1,336	)		(1,191	)		—			—			(1,191	)
Amortization of mortgage loan premium		(290	)		—			—		(290	)		(295	)		—			—			(295	)
Amortization of above- and below-market lease intangibles		62			(51	)		—		11			178			(68	)		—			110
Amortization of exchangeable notes debt discount		473			—			—		473			642			—			—			642
Impairment of assets		—			—			—		—			74,184			—			—			74,184
Gain on extinguishment of debt		—			—			—		—			(13,076	)		—			—			(13,076	)

FAD	$	10,784		$	4,304		$	—	$	15,088		$	18,591		$	4,254		$	1,865		$	24,710

Weighted average number of shares outstanding										54,223												43,357
Weighted average effect of full conversion of OP Units										2,329												2,329
Effect of common share equivalents										781												49

Total weighted average shares outstanding, including OP Units										57,333												45,735

FUNDS FROM OPERATIONS									$	32,183											$	(23,834	)
Impairment of assets										—												74,184
Gain on extinguishment of debt										—												(13,076	)

FUNDS FROM OPERATIONS AS ADJUSTED									$	32,183											$	37,274

FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT									$	0.56											$	(0.52	)
Impairment of assets										—												1.62
Gain on extinguishment of debt										—												(0.29	)

FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT AS ADJUSTED									$	0.56											$	0.81

FUNDS AVAILABLE FOR DISTRIBUTION PER DILUTED SHARE AND OP UNIT									$	0.26											$	0.54

DIVIDEND PER COMMON SHARE									$	0.15											$	0.15

Page 9

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(In thousands, except share and per share amounts)


	Year Ended December 31, 2010												Year Ended December 31, 2009
FUNDS FROM OPERATIONS (FFO)	Consolidated			Share of unconsolidated partnerships			Discontinued operations			Total			Consolidated			Share of unconsolidated partnerships			Discontinued operations			Total
Real Estate Revenue ⁽¹⁾	$	450,365		$	38,092		$	9,497		$	497,954		$	448,271		$	37,296		$	16,447		$	502,014
Operating Expenses		(195,273	)		(11,767	)		(2,107	)		(209,147	)		(190,968	)		(11,789	)		(3,791	)		(206,548	)

NET OPERATING INCOME		255,092			26,325			7,390			288,807			257,303			25,507			12,656			295,466
General and administrative expenses		(38,973	)		—			—			(38,973	)		(37,558	)		—			—			(37,558	)
Impairment of assets and project costs		(1,057	)		—			—			(1,057	)		(75,012	)		—			—			(75,012	)
Interest and other income		5,276			—			—			5,276			3,035			—			—			3,035
Income taxes and other expenses		(80	)		—			—			(80	)		(169	)		—			—			(169	)
Interest expense, net		(142,730	)		(8,619	)		(1,926	)		(153,275	)		(131,236	)		(7,261	)		(2,328	)		(140,825	)
Gain on extinguishment of debt		—			—			—			—			27,047			—			—			27,047
Gains on sales of non operating real estate		—			—			—			—			3,388			—			—			3,388
Depreciation on non real estate assets		(1,484	)		—			—			(1,484	)		(2,285	)		—			—			(2,285	)

FUNDS FROM OPERATIONS		76,044			17,706			5,464			99,214			44,513			18,246			10,328			73,087
Gains on sales of real estate		—			—			—			—			923			—			—			923
Depreciation on real estate assets		(160,108	)		(8,656	)		(3,907	)		(172,671	)		(159,405	)		(8,144	)		(6,055	)		(173,604	)
Equity in income of partnerships		9,050			(9,050	)		—			—			10,102			(10,102	)		—			—
Income in discontinued operations		1,557			—			(1,557	)		—			4,273			—			(4,273	)		—
Gains on sale of discontinued operations		19,094			—			—			19,094			9,503			—			—			9,503

Net loss	$	(54,363	)	$	—		$	—		$	(54,363	)	$	(90,091	)	$	—		$	—		$	(90,091	)

⁽¹⁾ Total includes the non-cash effect of straight-line rent of $1,147 and $1,276 for the twelve months ended December 31, 2010 and 2009, respectively.
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	76,044		$	17,706		$	5,464		$	99,214		$	44,513		$	18,246		$	10,328		$	73,087
Adjustments:
Straight line rent		(1,378	)		319			(88	)		(1,147	)		(1,159	)		33			(150	)		(1,276	)
Recurring capital expenditures		(15,792	)		(183	)		—			(15,975	)		(16,168	)		(327	)		—			(16,495	)
Tenant allowances		(18,129	)		(418	)		—			(18,547	)		(10,990	)		(322	)		—			(11,312	)
Capitalized leasing costs		(4,459	)		—			—			(4,459	)		(4,341	)		—			—			(4,341	)
Amortization of mortgage loan premium		(1,175	)		—			—			(1,175	)		(1,283	)		—			—			(1,283	)
Amortization of above- and below-market lease intangibles		240			(244	)		—			(4	)		(121	)		(273	)		—			(394	)
Amortization of exchangeable notes debt discount		1,855			—			—			1,855			2,817			—			—			2,817
Impairment of assets		—			—			—			—			74,254			—			—			74,254
Gain on extinguishment of debt		—			—			—			—			(27,047	)		—			—			(27,047	)

FAD	$	37,206		$	17,180		$	5,376		$	59,762		$	60,475		$	17,357		$	10,178		$	88,010

Weighted average number of shares outstanding											50,642												40,953
Weighted average effect of full conversion of OP Units											2,329												2,268
Effect of common share equivalents											502												12

Total weighted average shares outstanding, including OP Units											53,473												43,233

FUNDS FROM OPERATIONS										$	99,214											$	73,087
Accelerated amortization of deferred financing fees											3,652												—
Impairment of assets											—												74,254
Gain on extinguishment of debt											—												(27,047	)

FUNDS FROM OPERATIONS AS ADJUSTED										$	102,866											$	120,294

FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT										$	1.86											$	1.69
Accelerated amortization of deferred financing fees											0.07												—
Impairment of assets											—												1.72
Gain on extinguishment of debt											—												(0.63	)

FUNDS FROM OPERATIONS PER DILUTED SHARE AND OP UNIT AS ADJUSTED										$	1.93											$	2.78

FUNDS AVAILABLE FOR DISTRIBUTION PER DILUTED SHARE AND OP UNIT										$	1.12											$	2.04

DIVIDEND PER COMMON SHARE										$	0.60											$	0.74

PAYOUT RATIOS
Payout ratio of FFO											32.3	%											43.8	%
Payout ratio of FFO as adjusted											31.0	%											26.6	%
Payout ratio of FAD											53.7	%											36.4	%

Page 10

Pennsylvania Real Estate Investment Trust

2010 Leasing Activity Summary


					Average Base Rent psf				Change in Base Rent psf
	Number		GLA		Previous		New		Dollar			Percentage			Annualized Tenant Improvements psf(1)
New Leases - Previously Leased Space:
1st Quarter		13		37,635	$	26.45	$	25.58	$	(0.87	)		-3.3	%	$	0.67
2nd Quarter		24		70,107		21.92		23.63		1.71			7.8	%		1.91
3rd Quarter		26		70,644		27.19		24.19		(3.00	)		-11.0	%		2.09
4th Quarter		27		97,457		24.01		16.52		(7.49	)		-31.2	%		0.49

Total/Average		90		275,843	$	24.62	$	21.53	$	(3.09	)		-12.5	%	$	1.29
New Leases - Previously Vacant Space: ⁽²⁾
1st Quarter		14		83,459		N/A	$	17.42	$	17.42			N/A		$	0.24
2nd Quarter		36		156,027		N/A		16.64		16.64			N/A			1.13
3rd Quarter		58		238,159		N/A		17.59		17.59			N/A			2.86
4th Quarter		29		71,966		N/A		19.66		19.66			N/A			1.03

Total/Average		137		549,611		N/A	$	17.57	$	17.57			N/A		$	1.73
Renewal: ⁽³⁾
1st Quarter		132		491,920	$	21.96	$	20.44	$	(1.52	)		-6.9	%	$	0.02
2nd Quarter		96		386,448		20.03		19.72		(0.31	)		-1.5	%		0.24
3rd Quarter		85		318,891		23.46		22.52		(0.94	)		-4.0	%		0.14
4th Quarter		73		192,222		28.92		29.03		0.11			0.4	%		—

Total/Average		386		1,389,481	$	22.73	$	21.91	$	(0.82	)		-3.6	%	$	0.11
Anchor Renewal:
1st Quarter		6		398,532	$	3.12	$	3.08	$	(0.04	)		-1.3	%	$	—
2nd Quarter		7		789,883		2.27		2.27		—			0.0	%		—
3rd Quarter		6		778,332		2.51		2.51		—			0.0	%		—
4th Quarter		4		444,037		2.97		2.97		—			0.0	%		0.07

Total/Average		23		2,410,784	$	2.62	$	2.61	$	(0.01	)		-0.2	%	$	0.01

⁽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.

Page 11

Pennsylvania Real Estate Investment Trust

Summarized Rent Per Square Foot and Occupancy Percentages

December 31, 2010

December 31, 2009

Change

Avg Base
Rent

Occupancy

Avg Base
Rent

Occupancy

Avg Base
Rent

Occupancy

Total

Non-Anchor

Total

Non-Anchor

Total

Non-Anchor

Enclosed Malls weighted average ⁽¹⁾

32.52

90.4%

86.1%

32.49

89.5%

84.5%

0.1%

0.9%

1.6%

Strip and Power Centers weighted average

16.38

95.8%

93.9%

16.37

88.8%

85.0%

0.1%

7.0%

8.9%

Retail Portfolio weighted average

28.89

91.0%

87.2%

29.21

89.4%

84.6%

-1.1%

1.6%

2.6%

Consolidated Properties

30.52

90.5%

86.1%

30.83

89.3%

84.1%

-1.0%

1.2%

2.0%

Unconsolidated Properties

23.46

94.8%

93.1%

23.55

90.7%

87.6%

-0.4%

4.1%

5.5%

Same Properties

28.89

91.0%

87.2%

29.21

89.4%

84.6%

-1.1%

1.6%

2.6%

⁽¹⁾	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 $14.36/sq ft as of December 31, 2010 and $14.64/sq ft as of December 31, 2009.

Page 12

Pennsylvania Real Estate Investment Trust

Enclosed Mall Sales and Rent Per Square Foot


				December 31, 2010							December 31, 2009							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		22.3	%
Cherry Hill Mall				$	45.86	$	559		13.6	%	$	47.22	$	446		15.4	%		-2.9	%		25.3	%		-1.8	%
Lehigh Valley Mall					44.96		516		12.7	%		43.76		474		13.3	%		2.7	%		8.9	%		-0.6	%
Woodland Mall					40.85		499		12.9	%		44.36		438		14.8	%		-7.9	%		13.9	%		-1.9	%
Jacksonville Mall					32.88		490		10.2	%		32.65		493		9.6	%		0.7	%		-0.6	%		0.6	%
Sales per square foot between $350 - $400		30.0	%
Patrick Henry Mall					39.65		392		14.2	%		38.81		416		13.2	%		2.2	%		-5.8	%		1.0	%
Willow Grove Park ⁽³⁾					44.10		390		16.9	%		43.73		390		15.8	%		0.8	%		0.0	%		1.1	%
Moorestown Mall					36.61		378		15.1	%		35.80		385		15.0	%		2.3	%		-1.8	%		0.1	%
Viewmont Mall					29.92		369		13.0	%		30.25		359		12.8	%		-1.1	%		2.8	%		0.2	%
Valley View Mall					30.49		366		11.7	%		31.66		346		12.6	%		-3.7	%		5.8	%		-0.9	%
The Mall at Prince Georges					36.89		365		15.1	%		35.89		376		15.2	%		2.8	%		-2.9	%		-0.1	%
Wyoming Valley Mall					30.95		361		13.1	%		31.33		351		12.8	%		-1.2	%		2.8	%		0.3	%
Dartmouth Mall					30.49		361		12.1	%		29.80		348		11.9	%		2.3	%		3.7	%		0.2	%
The Gallery at Market East ⁽³⁾					38.77		359		13.7	%		37.64		349		13.9	%		3.0	%		2.9	%		-0.2	%
Sales per square foot between $300 - $349		26.1	%
Springfield Mall					34.39		349		14.3	%		33.30		327		16.4	%		3.3	%		6.7	%		-2.1	%
Capital City Mall					33.41		347		11.8	%		32.64		345		11.9	%		2.4	%		0.6	%		-0.1	%
Francis Scott Key Mall					27.35		334		11.5	%		25.98		320		12.1	%		5.3	%		4.4	%		-0.6	%
Plymouth Meeting Mall					30.37		321		9.6	%		34.62		245		13.0	%		-12.3	%		31.0	%		-3.4	%
Magnolia Mall					27.11		318		12.6	%		26.19		302		13.7	%		3.5	%		5.3	%		-1.1	%
Exton Square Mall					37.62		317		14.5	%		38.14		315		15.6	%		-1.4	%		0.6	%		-1.1	%
Valley Mall					26.26		314		11.7	%		25.51		309		13.0	%		2.9	%		1.6	%		-1.3	%
Crossroads Mall					21.06		313		9.8	%		22.28		298		9.7	%		-5.5	%		5.0	%		0.1	%
Logan Valley Mall					26.50		306		11.5	%		26.29		298		12.4	%		0.8	%		2.7	%		-0.9	%
Cumberland Mall					28.58		306		13.7	%		27.66		294		13.7	%		3.3	%		4.1	%		0.0	%
Sales per square foot under $300		21.6	%
Palmer Park Mall					25.35		285		11.2	%		25.71		278		12.3	%		-1.4	%		2.5	%		-1.1	%
Uniontown Mall					22.57		282		10.8	%		22.50		279		11.1	%		0.3	%		1.1	%		-0.3	%
Wiregrass Commons Mall					27.12		278		11.6	%		26.75		282		11.1	%		1.4	%		-1.4	%		0.5	%
Nittany Mall					22.36		277		11.1	%		22.85		283		10.9	%		-2.2	%		-2.1	%		0.2	%
Gadsden Mall					21.16		274		9.3	%		20.58		251		11.8	%		2.8	%		9.2	%		-2.5	%
New River Valley Mall					23.98		270		10.6	%		25.90		260		9.9	%		-7.4	%		3.8	%		0.7	%
North Hanover Mall					26.78		269		12.6	%		26.53		272		12.8	%		0.9	%		-1.1	%		-0.2	%
Lycoming Mall					21.57		255		10.3	%		20.58		241		11.9	%		4.8	%		5.8	%		-1.6	%
Beaver Valley Mall					22.12		250		13.5	%		22.77		249		14.8	%		-2.8	%		0.4	%		-1.3	%
Chambersburg Mall					24.26		240		9.6	%		28.54		225		11.0	%		-15.0	%		6.7	%		-1.4	%
Washington Crown Center					20.63		234		11.7	%		21.40		240		12.2	%		-3.6	%		-2.5	%		-0.5	%
Orlando Fashion Square					30.90		234		17.0	%		35.06		228		18.0	%		-11.8	%		2.6	%		-1.0	%
South Mall					23.14		227		12.3	%		24.48		244		12.9	%		-5.5	%		-7.0	%		-0.6	%
Phillipsburg Mall					24.94		210		12.2	%		25.24		223		13.2	%		-1.2	%		-5.8	%		-1.0	%
Voorhees Town Center					31.24		208		12.3	%		33.64		203		12.0	%		-7.1	%		2.5	%		0.3	%
Enclosed Malls weighted average				$	32.52	$	350		12.8	%	$	32.49	$	334		13.4	%		0.1	%		4.8	%		-0.6	%
Consolidated Properties				$	31.68	$	339		12.8	%	$	31.77	$	325		13.3	%		-0.3	%		4.3	%		-0.5	%
Unconsolidated Properties				$	41.53	$	461		13.1	%	$	40.20	$	425		14.1	%		3.3	%		8.5	%		-1.0	%
Same Properties				$	32.52	$	350		12.8	%	$	32.49	$	334		13.4	%		0.1	%		4.8	%		-0.6	%

⁽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 December 31, 2010 and 2009, respectively.

Page 13

Pennsylvania Real Estate Investment Trust

Enclosed Mall Occupancy - Owned GLA


	December 31, 2010						December 31, 2009						Change
	Total			Non-Anchor			Total			Non-Anchor			Total			Non-Anchor
Beaver Valley Mall		89.9	%		78.3	%		88.7	%		75.8	%		1.2	%		2.5	%
Capital City Mall		97.7	%		96.0	%		98.1	%		96.8	%		-0.4	%		-0.8	%
Chambersburg Mall		83.2	%		64.1	%		83.2	%		64.1	%		0.0	%		0.0	%
Cherry Hill Mall		92.2	%		90.6	%		94.6	%		93.5	%		-2.4	%		-2.9	%
Crossroads Mall		89.1	%		75.3	%		86.1	%		67.9	%		3.0	%		7.4	%
Cumberland Mall		92.0	%		86.7	%		92.5	%		87.6	%		-0.5	%		-0.9	%
Dartmouth Mall		97.5	%		95.8	%		91.7	%		86.4	%		5.8	%		9.4	%
Exton Square Mall		89.2	%		76.3	%		90.7	%		79.5	%		-1.5	%		-3.2	%
Francis Scott Key Mall		97.7	%		95.6	%		97.5	%		95.2	%		0.2	%		0.4	%
Gadsden Mall		93.3	%		83.4	%		92.3	%		80.9	%		1.0	%		2.5	%
The Gallery at Market East ⁽¹⁾		61.3	%		77.6	%		59.4	%		73.3	%		1.9	%		4.3	%
Jacksonville Mall		99.6	%		99.2	%		97.9	%		95.8	%		1.7	%		3.4	%
Lehigh Valley Mall		97.2	%		96.1	%		94.0	%		91.7	%		3.2	%		4.4	%
Logan Valley Mall		94.4	%		86.6	%		95.1	%		88.2	%		-0.7	%		-1.6	%
Lycoming Mall		95.6	%		91.8	%		96.2	%		92.9	%		-0.6	%		-1.1	%
Magnolia Mall		98.7	%		97.1	%		96.1	%		91.1	%		2.6	%		6.0	%
Moorestown Mall		89.1	%		75.5	%		90.0	%		77.6	%		-0.9	%		-2.1	%
New River Valley Mall		96.7	%		94.6	%		95.9	%		93.1	%		0.8	%		1.5	%
Nittany Mall		91.9	%		83.6	%		91.6	%		82.9	%		0.3	%		0.7	%
North Hanover Mall		91.8	%		80.4	%		89.6	%		75.2	%		2.2	%		5.2	%
Orlando Fashion Square		88.7	%		76.1	%		86.3	%		70.9	%		2.4	%		5.2	%
Palmer Park Mall		95.5	%		85.6	%		95.7	%		86.3	%		-0.2	%		-0.7	%
Patrick Henry Mall		96.6	%		93.3	%		97.2	%		94.6	%		-0.6	%		-1.3	%
Phillipsburg Mall		90.7	%		78.6	%		90.4	%		77.9	%		0.3	%		0.7	%
Plymouth Meeting Mall		87.7	%		81.2	%		85.9	%		78.4	%		1.8	%		2.8	%
The Mall at Prince Georges		96.1	%		91.9	%		96.1	%		91.7	%		0.0	%		0.2	%
South Mall		90.8	%		86.0	%		90.4	%		85.3	%		0.4	%		0.7	%
Springfield Mall		83.1	%		83.1	%		85.0	%		85.0	%		-1.9	%		-1.9	%
Uniontown Mall		92.6	%		81.4	%		91.9	%		79.5	%		0.7	%		1.9	%
Valley Mall		96.3	%		93.6	%		96.8	%		94.5	%		-0.5	%		-0.9	%
Valley View Mall		92.6	%		89.7	%		92.3	%		89.3	%		0.3	%		0.4	%
Viewmont Mall		99.5	%		98.7	%		97.8	%		94.2	%		1.7	%		4.5	%
Voorhees Town Center		59.8	%		59.2	%		63.8	%		63.3	%		-4.0	%		-4.1	%
Washington Crown Center		88.5	%		78.8	%		83.3	%		69.2	%		5.2	%		9.6	%
Willow Grove Park ⁽²⁾		69.5	%		91.2	%		69.1	%		92.6	%		0.4	%		-1.4	%
Wiregrass Commons Mall		86.9	%		81.0	%		85.4	%		78.8	%		1.5	%		2.2	%
Woodland Mall		90.7	%		90.7	%		86.2	%		86.2	%		4.5	%		4.5	%
Wyoming Valley Mall		96.5	%		89.9	%		93.4	%		81.2	%		3.1	%		8.7	%

Enclosed Malls weighted average ⁽³⁾		90.4	%		86.1	%		89.5	%		84.5	%		0.9	%		1.6	%

Consolidated Properties		90.2	%		85.7	%		89.4	%		84.2	%		0.8	%		1.5	%
Unconsolidated Properties		94.1	%		92.5	%		92.0	%		89.9	%		2.1	%		2.6	%
Same Properties		90.4	%		86.1	%		89.5	%		84.5	%		0.9	%		1.6	%

⁽¹⁾

The total occupancy percentage for The Gallery at Market East includes 328,390 sf of the former Strawbridge’s store that is currently vacant, pending redevelopment. This vacant department store represents 30.3% and 30.4% of the owned mall GLA as of December 31, 2010 and December 31, 2009, respectively.

⁽²⁾	The total occupancy percentage for Willow Grove Park includes the former Strawbridge’s store that is currently vacant. This vacant department store represents 26.6% and 26.2% of the owned mall GLA as of December 31, 2010 and December 31, 2009, respectively.

⁽³⁾	Including all tenants occupying space under a license agreement with an initial term of less than one year, total enclosed mall occupancy is 92.6% and 91.8%, and occupancy excluding anchors is 90.4% and 89.0% for the periods ending December 31, 2010 and December 31, 2009, respectively.

Page 14

Pennsylvania Real Estate Investment Trust

Strip and Power Center Rent Per Square Foot and Occupancy Percentages


	December 31, 2010								December 31, 2009								Change
	Avg		Occupancy						Avg		Occupancy						Avg			Occupancy
	Base Rent		Total			Non-Anchor			Base Rent		Total			Non-Anchor			Base Rent			Total			Non-Anchor
Christiana Center	$	20.10		98.8	%		96.8	%	$	21.94		88.1	%		67.7	%		-8.4	%		10.7	%		29.1	%
The Commons at Magnolia		14.43		88.5	%		85.7	%		12.09		63.2	%		82.8	%		19.4	%		25.3	%		2.9	%
Metroplex Shopping Center		19.57		100.0	%		100.0	%		19.10		100.0	%		100.0	%		2.5	%		0.0	%		0.0	%
The Court at Oxford Valley		15.60		100.0	%		100.0	%		16.16		91.3	%		90.0	%		-3.5	%		8.7	%		10.0	%
Paxton Towne Centre		15.88		98.2	%		97.3	%		16.04		90.8	%		86.1	%		-1.0	%		7.4	%		11.2	%
Red Rose Commons		14.24		84.2	%		84.2	%		14.16		72.5	%		72.5	%		0.6	%		11.7	%		11.7	%
Springfield Park		21.10		98.2	%		94.9	%		20.90		98.2	%		94.9	%		1.0	%		0.0	%		0.0	%
Whitehall Mall		12.51		91.6	%		82.3	%		11.29		86.6	%		71.5	%		10.8	%		5.0	%		10.8	%

Weighted Average	$	16.38		95.8	%		93.9	%	$	16.37		88.8	%		85.0	%		0.1	%		7.0	%		8.9	%

Consolidated Properties	$	16.64		97.2	%		95.2	%	$	16.73		86.4	%		81.2	%		-0.5	%		10.8	%		14.0	%
Unconsolidated Properties	$	16.29		95.2	%		93.4	%	$	16.25		89.9	%		86.3	%		0.2	%		5.3	%		7.1	%
Same Properties	$	16.38		95.8	%		93.9	%	$	16.37		88.8	%		85.0	%		0.1	%		7.0	%		8.9	%

Page 15

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 Locations		GLA		Number of Locations		GLA		Total Number of Locations		Total GLA		Annualized Minimum Rent		PREIT’s share of Annualized Minimum Rent ⁽³⁾		Percent of PREIT’s Total Retail Minimum Rent
Gap, Inc.		46		582,719		5		51,516		51		634,235	$	12,631	$	11,578		3.67	%
Foot Locker, Inc.		62		326,954		11		34,347		73		361,301		8,117		7,664		2.43	%
JCPenney Company, Inc.		24		2,369,736		6		824,327		30		3,194,063		7,526		7,526		2.38	%
Limited Brands, Inc.		59		282,522		13		41,196		72		323,718		7,633		7,187		2.28	%
American Eagle Outfitters, Inc.		40		218,381		2		8,840		42		227,221		6,795		6,487		2.05	%
Sears Holding Corporation		25		2,834,189		5		880,777		30		3,714,966		6,007		5,583		1.77	%
Zale Corporation		77		60,027		0		—		77		60,027		5,661		5,356		1.70	%
Signet Jewelers Limited		39		59,732		0		—		39		59,732		4,575		4,420		1.40	%
Dick’s Sporting Goods, Inc.		8		371,675		1		50,484		9		422,159		4,835		4,041		1.28	%
Bain Capital LLC ⁽⁴⁾		28		582,681		4		8,075		32		590,756		4,118		3,979		1.26	%
Luxottica Group S.p.A.		47		114,076		3		9,062		50		123,138		4,065		3,767		1.19	%
Abercrombie & Fitch Co.		20		136,727		0		—		20		136,727		4,021		3,639		1.15	%
Golden Gate Capital ⁽⁵⁾		14		130,715		5		34,799		19		165,514		3,989		3,592		1.14	%
Genesco, Inc.		55		70,696		5		6,395		60		77,091		3,232		3,092		0.98	%
Commonwealth of Pennsylvania		2		229,244		0		—		2		229,244		3,085		3,085		0.98	%
Aeropostale, Inc.		33		115,112		3		10,619		36		125,731		3,274		3,058		0.97	%
Barnes & Noble, Inc.		9		271,086		0		—		9		271,086		4,105		3,023		0.96	%
Hallmark Cards, Inc.		34		134,710		9		38,480		43		173,190		3,110		2,937		0.93	%
Pacific Sunwear, Inc.		28		104,522		5		16,858		33		121,380		3,074		2,920		0.92	%
Transworld Entertainment Corporation		29		141,123		0		—		29		141,123		2,931		2,734		0.87	%

Total Top 20 Tenants		679		9,136,627		77		2,015,775		756		11,152,402	$	102,784	$	95,668		30.30	%

Total Retail Leases										3,163					$	315,696		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 26 Gymboree stores and six Burlington Coat Factory stores.

⁽⁵⁾	Consists of 18 Express stores and one J. Jill store.

Page 16

Pennsylvania Real Estate Investment Trust

Lease Expirations as of December 31, 2010

(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			Minimum Rent in Expiring Year		PREIT’s Share of Minimum Rent in Expiring Year ⁽²⁾		Percent of PREIT’s Total			Average Expiring Minimum Rent psf
2010 and Prior		149		390,236		3.2	%	$	9,429	$	8,949		3.2	%	$	24.16
2011		616		1,743,828		14.2	%		43,600		41,741		15.1	%		25.00
2012		498		1,668,009		13.6	%		39,840		36,888		13.3	%		23.88
2013		337		1,079,254		8.8	%		25,344		23,865		8.6	%		23.48
2014		243		859,265		7.0	%		21,579		19,643		7.1	%		25.11
2015		245		1,226,880		10.0	%		27,912		24,898		9.0	%		22.75
2016		241		1,056,889		8.6	%		29,822		26,322		9.5	%		28.22
2017		190		858,312		7.0	%		23,088		20,682		7.5	%		26.90
2018		185		933,475		7.6	%		25,173		22,887		8.3	%		26.97
2019		141		588,682		4.8	%		18,674		17,775		6.4	%		31.72
2020		124		886,575		7.2	%		19,581		18,441		6.7	%		22.09
Thereafter		84		954,812		7.8	%		15,633		14,246		5.2	%		16.37

Total/Average		3,053		12,246,217		100.0	%	$	299,675	$	276,337		100.0	%	$	24.47


Anchors⁽¹⁾
			Gross Leasable Area					Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring ⁽³⁾		Expiring GLA		Percent of Total			Minimum Rent in Expiring Year		PREIT’s Share of Minimum Rent in Expiring Year ⁽²⁾		Percent of PREIT’s Total			Average Expiring Minimum Rent psf
2011		7		603,703		5.4	%	$	1,389	$	1,246		3.2	%	$	2.30
2012		6		713,305		6.3	%		1,210		1,173		3.0	%		1.70
2013		14		1,135,570		10.1	%		4,593		4,593		11.7	%		4.04
2014		15		1,551,546		13.8	%		4,249		3,787		9.6	%		2.74
2015		19		1,746,117		15.5	%		5,187		5,187		13.2	%		2.97
2016		14		1,504,583		13.3	%		3,512		3,512		8.9	%		2.33
2017		5		527,539		4.7	%		2,677		2,313		5.9	%		5.07
2018		6		777,965		6.9	%		4,081		4,081		10.4	%		5.25
2019		8		817,875		7.3	%		2,444		2,444		6.2	%		2.99
2020		3		277,729		2.5	%		1,192		1,192		3.0	%		4.29
Thereafter		13		1,623,875		14.4	%		10,971		9,831		25.0	%		6.76

Total/Average		110		11,279,807		100.0	%	$	41,505	$	39,359		100.0	%	$	3.68

⁽¹⁾	Only includes owned space.

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

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

Page 17

Pennsylvania Real Estate Investment Trust

Retail Gross Leasable Area Occupancy Summary as of December 31, 2010


	Owned GLA
	Occupied						Vacant
			Non-Anchor
	Anchor		Large Format ⁽¹⁾		Small Shop ⁽²⁾		Anchor		Non-Anchor		GLA Not Owned		Total GLA
Malls
Beaver Valley Mall		511,267		148,740		200,642		—		96,660		204,770		1,162,079
Capital City Mall		204,301		63,586		209,488		—		11,364		120,000		608,739
Chambersburg Mall		241,690		19,651		116,666		—		76,330		—		454,337
Cherry Hill Mall ⁽³⁾		138,000		204,015		411,639		—		63,929		478,885		1,296,468
Crossroads Mall		254,211		12,231		137,232		—		49,155		—		452,829
Cumberland Mall		264,348		212,538		137,943		—		53,559		273,230		941,618
Dartmouth Mall		208,460		142,274		166,817		—		13,389		140,000		670,940
Exton Square Mall		440,301		26,617		254,898		—		87,429		277,468		1,086,713
Francis Scott Key Mall		269,708		93,084		190,934		—		13,167		139,333		706,226
Gadsden Mall		300,960		65,746		102,838		—		33,645		—		503,189
The Gallery at Market East		350,115		84,970		230,209		328,390		90,741		—		1,084,425
Jacksonville Mall		242,115		98,693		145,838		—		2,063		—		488,709
Lehigh Valley Mall		212,000		171,800		379,953		—		22,174		371,986		1,157,913
Logan Valley Mall		454,387		43,943		238,440		—		43,508		—		780,278
Lycoming Mall		333,413		182,268		169,003		—		31,229		120,000		835,913
Magnolia Mall		343,118		86,608		178,000		—		7,962		—		615,688
Moorestown Mall		408,356		98,682		150,334		—		80,795		321,200		1,059,367
New River Valley Mall		175,306		122,239		129,223		—		14,478		—		441,246
Nittany Mall		221,462		12,500		167,761		—		35,322		95,000		532,045
North Hanover Mall		206,792		21,047		98,770		—		29,154		—		355,763
Orlando Fashion Square		491,999		139,507		195,712		—		105,008		155,576		1,087,802
Palmer Park Mall		314,235		—		122,844		—		20,623		—		457,702
Patrick Henry Mall		279,619		37,758		237,298		—		19,655		140,000		714,330
Phillipsburg Mall		326,552		42,021		156,246		—		53,891		—		578,710
Plymouth Meeting Mall ⁽⁴⁾		253,584		188,348		206,633		—		91,239		214,635		954,439
The Mall at Prince Georges		479,619		119,073		278,800		—		35,174		—		912,666
South Mall		139,691		131,434		96,873		—		37,201		—		405,199
Springfield Mall		—		—		184,586		—		37,495		387,899		609,980
Uniontown Mall		421,378		67,996		157,673		—		51,538		—		698,585
Valley Mall		280,549		125,334		241,898		—		24,962		243,400		916,143
Valley View Mall		96,357		74,148		147,719		—		25,442		254,596		598,262
Viewmont Mall		386,262		82,893		154,866		—		3,173		120,000		747,194
Voorhees Town Center ⁽⁵⁾		4,404		67,478		109,610		—		121,796		396,783		700,071
Washington Crown Center		245,401		79,085		149,911		—		61,626		140,095		676,118
Willow Grove Park		225,000		37,260		279,089		206,834		30,422		413,121		1,191,726
Wiregrass Commons		94,686		10,345		160,622		—		40,142		332,152		637,947
Woodland Mall		—		120,959		272,399		—		40,397		725,187		1,158,942
Wyoming Valley Mall		592,110		90,851		196,171		—		32,168		—		911,300

Total Malls (38 properties)		10,411,756		3,325,722		7,165,578		535,224		1,688,005		6,065,316		29,191,601

Strip and Power Centers
Christiana Center		190,814		68,132		39,888		—		3,600		—		302,434
The Commons at Magnolia		20,631		28,618		43,117		—		11,966		126,200		230,532
Metroplex Shopping Center		67,185		362,593		47,683		—		—		300,729		778,190
The Court at Oxford Valley		59,620		361,129		36,154		—		—		247,623		704,526
Paxton Towne Centre		151,627		221,425		63,380		—		8,000		273,058		717,490
Red Rose Commons		—		208,373		15,206		—		42,034		199,590		465,203
Springfield Park		83,539		20,500		22,443		—		2,329		145,669		274,480
Whitehall Mall		294,635		160,865		55,411		—		46,590		—		557,501

Total Strip and Power Centers (8 properties)		868,051		1,431,635		323,282		—		114,519		1,292,869		4,030,356

CONSOLIDATED PROPERTIES		10,562,828		3,472,097		6,747,424		535,224		1,651,902		5,704,689		28,674,164
UNCONSOLIDATED PROPERTIES		716,979		1,285,260		741,436		—		150,622		1,653,496		4,547,793
TOTAL PROPERTIES		11,279,807		4,757,357		7,488,860		535,224		1,802,524		7,358,185		33,221,957

⁽¹⁾	Includes tenants greater than 10,000 square feet.

⁽²⁾	Includes tenants less than 10,000 square feet.

⁽³⁾	Additional 24,588 sf has been entitled but not yet built.

⁽⁴⁾	Additional 14,316 sf has been entitled but not yet built.

⁽⁵⁾	Additional 31,584 sf has been built but not commissioned, and 128,514 sf has been entitled but not yet built.

Page 18

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2010

Properties

Ownership
Interest

Date Acquired

Year Built/Last
Renovated

Anchors / Major Tenants

Lease Expiration

MALLS

Beaver Valley Mall

100%

2002

1970/1991

Boscov’s

9/30/18

Monaca, PA

JCPenney

9/30/17

Macy’s

(1)

Sears

8/15/16

Capital City Mall

100%

2003

1974/2005

JCPenney

11/30/15

Camp Hill, PA

Macy’s

(1)

Sears

7/28/14

Chambersburg Mall

100%

2003

1982

Bon-Ton

1/28/16

Chambersburg, PA

Burlington Coat Factory

1/31/19

JCPenney

3/31/12

Sears

2/9/15

Cherry Hill Mall

100%

2003

1961/2009

The Container Store

2/28/18

Cherry Hill, NJ

Crate and Barrel

1/31/23

JCPenney

(1)

Macy’s

(1)

Nordstrom

2/28/25

Crossroads Mall ⁽²⁾

100%

2003

1981

Belk

11/5/14

Beckley, WV

JCPenney

12/31/11

Sears

3/31/16

Cumberland Mall

100%

2005

1973/2003

Best Buy

1/31/16

Vineland, NJ

BJ’s

(1)

Boscov’s

(1)

Burlington Coat Factory

4/30/19

Home Depot

10/31/19

JCPenney

11/30/13

Dartmouth Mall

100%

1997

1971/2000

JCPenney

7/31/14

Dartmouth, MA

Macy’s

(1)

Sears

4/12/16

Exton Square Mall ⁽²⁾

100%

2003

1973/2000

Boscov’s

10/31/19

Exton, PA

JCPenney

5/31/20

K-Mart

(1)

Macy’s

(1)

Sears

10/6/19

Francis Scott Key Mall

100%

2003

1978/1991

Barnes & Noble

4/30/17

Frederick, MD

JCPenney

9/30/16

Macy’s

(1)

Sears

7/31/13

Value City Furniture

1/31/19

Gadsden Mall

100%

2005

1974/1990

Belk

7/31/14

Gadsden, AL

JCPenney

1/31/29

Sears

3/5/14

The Gallery at Market East ⁽²⁾

100%

2003

1977/1990

Burlington Coat Factory

2/28/32

Philadelphia, PA

Commonwealth of Pennsylvania

6/30/29

Jacksonville Mall

100%

2003

1981/2008

Barnes & Noble

5/31/18

Jacksonville, NC

Belk

8/21/11

JCPenney

8/31/15

Sears

8/4/11

Lehigh Valley Mall ⁽³⁾

50%

1973

1977/2007

Barnes & Noble

10/31/17

Allentown, PA

Boscov’s

(1)

JCPenney

(1)

Macy’s

7/31/12

Logan Valley Mall

100%

2003

1960/1997

JCPenney

1/31/17

Altoona, PA

Macy’s

1/31/15

Sears

10/31/16

Lycoming Mall

100%

2003

1978/2007

Best Buy

1/31/17

Pennsdale, PA

Bon-Ton

7/27/11

Borders

1/31/17

Burlington Coat Factory

1/31/19

Dick’s Sporting Goods

1/31/17

JCPenney

10/31/15

Macy’s

(1)

Sears

7/31/13

Magnolia Mall

100%

1997

1979/2007

Barnes & Noble

9/30/17

Florence, SC

Belk

1/31/16

Best Buy

1/31/13

Dick’s Sporting Goods

1/31/18

JCPenney

3/31/12

Sears

10/16/14

Moorestown Mall

100%

2003

1963/2008

Boscov’s

10/31/15

Moorestown, NJ

Lord & Taylor

(1)

Macy’s

(1)

Sears

10/5/22

New River Valley Mall

100%

2003

1988/2007

Belk

4/19/14

Christiansburg, VA

Dick’s Sporting Goods

1/31/17

JCPenney

3/31/13

Regal Cinemas

4/30/22

Sears

8/2/13

Page 19

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2010 (continued)


Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
Nittany Mall	100%	2003	1968/1990	Bon-Ton	1/31/13
State College, PA				JCPenney	7/31/15
				Macy’s	(1)
				Sears	8/28/15
North Hanover Mall	100%	2003	1967/1999	Dick’s Sporting Goods	1/31/18
Hanover, PA				JCPenney	1/31/16
				Sears	11/30/14
Orlando Fashion Square ⁽²⁾	100%	2004	1973/2003	Dillard’s	1/31/14
Orlando, FL				JCPenney	4/30/13
				Macy’s	10/30/71
				Sears	(1)
Palmer Park Mall	100%	1972/2003	1972/1998	Bon-Ton	7/25/14
Easton, PA				Boscov’s	10/31/18
Patrick Henry Mall	100%	2003	1988/2005	Borders	1/31/21
Newport News, VA				Dick’s Sporting Goods	1/31/22
				Dillard’s	9/22/13
				JCPenney	10/31/15
				Macy’s	(1)
Phillipsburg Mall	100%	2003	1989/2003	Bon-Ton	1/31/15
Phillipsburg, NJ				JCPenney	3/31/13
				Kohl’s	1/31/25
				Sears	4/30/14
Plymouth Meeting Mall ⁽²⁾	100%	2003	1966/2009	AMC Theater	12/31/18
Plymouth Meeting, PA				Boscov’s	10/31/16
				Macy’s	(1)
				Whole Foods	11/30/29
The Mall at Prince Georges	100%	1998	1959/2004	JCPenney	7/31/16
Hyattsville, MD				Macy’s	10/31/18
				Marshalls	9/30/16
				Ross Dress for Less	1/31/18
				Target	1/31/15
South Mall	100%	2003	1975/1992	Bon-Ton	1/30/16
Allentown, PA				Stein Mart	10/31/11
Springfield Mall	50%	2005	1974/1997	Macy’s	(1)
Springfield, PA				Target	(1)
Uniontown Mall ⁽²⁾	100%	2003	1972/1990	Bon-Ton	1/31/16
Uniontown, PA				Burlington Coat Factory	1/31/19
				JCPenney	10/31/15
				Roomful Express Furn.	3/31/15
				Sears	2/25/13
				Teletech Customer Care	6/30/13
Valley Mall	100%	2003	1974/1999	Bon-Ton	1/31/14
Hagerstown, MD				JCPenney	10/31/14
				Macy’s	(1)
				Sears	(1)
Valley View Mall	100%	2003	1980/2001	Barnes & Noble	1/31/17
La Crosse, WI				Herberger’s	(1)
				JCPenney	7/31/15
				Macy’s	(1)
				Sears	(1)
Viewmont Mall	100%	2003	1968/2006	JCPenney	10/31/15
Scranton, PA				Macy’s	(1)
				Sears	12/31/15
Voorhees Town Center ⁽²⁾	100%	2003	1970/2007	Boscov’s	(1)
Voorhees, NJ				Macy’s	(1)
				The Star Group	8/31/28
Washington Crown Center	100%	2003	1969/1999	Bon-Ton	1/31/15
Washington, PA				Gander Mountain Sports	7/24/13
				Macy’s	(1)
				Sears	8/17/14
Willow Grove Park	100%	2000/2003	1982/2001	Bloomingdale’s	(1)
Willow Grove, PA				The Cheesecake Factory	1/31/28
				Macy’s	1/31/22
				Sears	(1)
Wiregrass Commons Mall	100%	2003	1986/2008	Belk	(1)
Dothan, AL				Burlington Coat Factory	1/31/20
				Dillards	(1)
				JCPenney	(1)
Woodland Mall	100%	2005	1968/1998	Apple	6/30/15
Grand Rapids, MI				Barnes & Noble	1/31/20
				JCPenney	(1)
				Kohl’s	(1)
				Macy’s	(1)
				Sears	(1)
Wyoming Valley Mall	100%	2003	1971/2006	Bon-Ton	1/31/12
Wilkes-Barre, PA				JCPenney	4/30/12
				Macy’s	1/31/17
				Sears	8/1/16

Page 20

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2010 (continued)


Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
POWER CENTERS
Christiana Center	100%	1998	1998	Costco	9/30/18
Newark, DE				Dick’s Sporting Goods	11/30/13
Metroplex Shopping Center ⁽³⁾	50%	1999	2001	Giant Food Store	2/28/21
Plymouth Meeting, PA				Lowe’s	(1)
				Target	(1)
The Court at Oxford Valley ⁽³⁾	50%	1997	1996	Best Buy	5/31/21
Langhorne, PA				BJ’s	(1)
				Dick’s Sporting Goods	4/30/21
				Home Depot	(1)
Paxton Towne Centre	100%	1999	2001	Costco	(1)
Harrisburg, PA				Kohl’s	1/25/21
				Target	(1)
				Weis Markets	11/30/20
Red Rose Commons ⁽³⁾	50%	1998	1998	Home Depot	(1)
Lancaster, PA				Weis Markets	(1)
Whitehall Mall ⁽³⁾	50%	1964	1964/1998	Bed, Bath & Beyond	1/31/15
Allentown, PA				Kohl’s	3/9/17
				Sears	9/18/11
STRIP CENTERS
The Commons at Magnolia	100%	1999	1991/2002	Bed, Bath & Beyond	1/31/15
Florence, SC				Target	(1)
Springfield Park	50%	1997/1998	1997/1998	Bed, Bath & Beyond	1/31/14
Springfield, PA				LA Fitness	3/31/17
				Target	(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 21

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method ⁽¹⁾

(in thousands, except per share amounts)


	December 31, 2010									December 31, 2009
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,448,900		$	210,505		$	3,659,405		$	3,459,745		$	208,319		$	3,668,064
Construction in progress		121,547			753			122,300			215,231			1,566			216,797
Land held for development		17,021			—			17,021			9,337			183			9,520

Total investments in real estate		3,587,468			211,258			3,798,726			3,684,313			210,068			3,894,381
Accumulated depreciation		(729,086	)		(66,699	)		(795,785	)		(623,309	)		(59,849	)		(683,158	)

Net investments in real estate		2,858,382			144,559			3,002,941			3,061,004			150,219			3,211,223

Investments in partnerships, at equity		30,959			(30,959	)		—			32,694			(32,694	)		—
Other assets:
Cash and cash equivalents		42,327			4,780			47,107			74,243			2,904			77,147
Rent and other receivables ⁽²⁾		40,732			6,390			47,122			55,303			7,501			62,804
Intangible assets, net		15,787			288			16,075			38,978			464			39,442
Deferred costs and other assets, net		91,930			8,304			100,234			84,358			7,395			91,753

Total other assets		221,735			(11,197	)		210,538			285,576			(14,430	)		271,146

Total assets	$	3,080,117		$	133,362		$	3,213,479		$	3,346,580		$	135,789		$	3,482,369

LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $1,569 and $ 2,744 respectively)	$	1,744,248		$	175,693		$	1,919,941		$	1,777,121		$	181,776		$	1,958,897
Exchangeable notes (net of discount of $2,809 and $ 4,664 respectively)		134,091			—			134,091			132,236			—			132,236
Revolving Facilities		—			—			—			486,000			—			486,000
Term Loans		347,200			—			347,200			170,000			—			170,000
Tenants’ deposits and deferred rent		16,583			3,899			20,482			13,170			3,621			16,791
Distributions in excess of partnership investments		44,614			(44,614	)		—			48,771			(48,771	)		—
Accrued construction costs		6,158			—			6,158			11,778			—			11,778
Fair value of derivative instruments		27,233			—			27,233			14,610			—			14,610
Other liabilities		55,460			(1,616	)		53,844			58,090			(1,010	)		57,080

Total liabilities		2,375,587			133,362			2,508,949			2,711,776			135,616			2,847,392

Equity:
Total equity		704,530			—			704,530			634,804			173			634,977

Total liabilities and equity	$	3,080,117		$	133,362		$	3,213,479		$	3,346,580		$	135,789		$	3,482,369

⁽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 $27.8 million ($25.2 million wholly owned, $2.6 million partnership) as of December 31, 2010 and $27.8 ($24.9 million wholly owned, $2.9 million partnership) as of December 31, 2009.

Page 22

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Property Type ⁽¹⁾

(in thousands, except per share amounts)


	December 31, 2010												December 31, 2009
	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	$	3,433,844		$	219,321		$	23,261		$	3,676,426		$	3,331,917		$	338,560		$	7,107		$	3,677,584
Construction in progress		67,123			—			55,177			122,300			148,561			13,810			54,426			216,797

Total investments in real estate		3,500,967			219,321			78,438			3,798,726			3,480,478			352,370			61,533			3,894,381
Accumulated depreciation		(724,708	)		(69,785	)		(1,292	)		(795,785	)		(604,083	)		(77,804	)		(1,271	)		(683,158	)

Net investments in real estate		2,776,259			149,536			77,146			3,002,941			2,876,395			274,566			60,262			3,211,223

Other assets:
Cash and cash equivalents		21,119			1,931			24,057			47,107			15,072			1,250			60,825			77,147
Rent and other receivables ⁽²⁾		37,768			7,008			2,346			47,122			40,741			9,674			12,389			62,804
Intangible assets, net		8,725			—			7,350			16,075			31,988			—			7,454			39,442
Deferred costs and other assets, net		72,165			7,960			20,109			100,234			67,529			10,468			13,756			91,753

Total other assets		139,777			16,899			53,862			210,538			155,330			21,392			94,424			271,146

Total assets	$	2,916,036		$	166,435		$	131,008		$	3,213,479		$	3,031,725		$	295,958		$	154,686		$	3,482,369

LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $1,569 and $2,744 respectively)	$	1,743,470		$	171,553		$	4,918		$	1,919,941		$	1,743,555		$	205,250		$	10,092		$	1,958,897
Exchangeable notes (net of discount of $2,809 and $4,664 respectively)		—			—			134,091			134,091			—			—			132,236			132,236
Revolving Facilities		—			—			—			—			—			—			486,000			486,000
Term Loans		—			—			347,200			347,200			—			—			170,000			170,000
Tenants’ deposits and deferred rent		18,205			2,128			149			20,482			14,406			2,232			153			16,791
Accrued construction costs		—			—			6,158			6,158			—			—			11,778			11,778
Fair value of derivative instruments		—			—			27,233			27,233			—			—			14,610			14,610
Other liabilities		32,593			(2,277	)		23,528			53,844			35,124			(2,094	)		24,050			57,080

Total liabilities		1,794,268			171,404			543,277			2,508,949			1,793,085			205,388			848,919			2,847,392

Equity:
Total equity		1,121,768			(4,969	)		(412,269	)		704,530			1,238,640			90,570			(694,233	)		634,977

Total liabilities and equity	$	2,916,036		$	166,435		$	131,008		$	3,213,479		$	3,031,725		$	295,958		$	154,686		$	3,482,369

⁽¹⁾

⁽²⁾	Total includes straight line rent of $27.8 million ($25.2 million wholly owned, $2.6 million partnership) as of December 31, 2010 and $27.8 ($24.9 million wholly owned, $2.9 million partnership) as of December 31, 2009.

Page 23

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾

(in thousands)


	December 31, 2010								December 31, 2009
	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	$	69,663	$	—	$	18,536	$	51,127	$	69,217	$	32	$	16,871	$	52,378
Capital City Mall		95,920		—		21,547		74,373		95,063		—		18,057		77,006
Chambersburg Mall		38,529		—		7,803		30,726		38,227		—		6,862		31,365
Cherry Hill Mall		448,513		34		76,173		372,374		418,058		27,083		54,781		390,360
Crossroads Mall		36,750		1,057		8,903		28,904		34,926		68		7,623		27,371
Cumberland Mall		63,340		153		9,051		54,442		62,540		—		7,159		55,381
Dartmouth Mall		62,543		—		26,604		35,939		62,283		—		24,494		37,789
Exton Square Mall		147,556		64		26,367		121,253		147,098		—		23,161		123,937
Francis Scott Key Mall		76,482		813		16,587		60,708		79,883		147		14,076		65,954
Gadsden Mall		61,174		—		9,735		51,439		60,471		—		7,607		52,864
The Gallery at Market East		169,696		2,014		19,913		151,797		130,679		38,816		14,838		154,657
Jacksonville Mall		79,247		—		16,096		63,151		78,346		—		13,470		64,876
Logan Valley Mall		96,000		—		22,521		73,479		95,877		—		19,674		76,203
Lycoming Mall		76,814		—		15,817		60,997		75,782		—		13,070		62,712
Magnolia Mall		87,434		27		23,814		63,647		86,756		1,295		22,028		66,023
Moorestown Mall		92,560		87		25,201		67,446		92,172		50		22,549		69,673
New River Valley Mall		57,892		—		15,238		42,654		57,748		—		12,094		45,654
Nittany Mall		43,458		—		9,073		34,385		43,417		—		7,853		35,564
North Hanover Mall		38,219		17,100		8,004		47,315		38,484		17,096		6,934		48,646
Orlando Fashion Square ⁽²⁾		40,426		—		4,448		35,978		38,090		—		2,148		35,942
Palmer Park Mall		34,465		—		12,103		22,362		34,600		—		11,406		23,194
Patrick Henry Mall		141,312		—		32,338		108,974		141,004		—		27,130		113,874
Phillipsburg Mall		54,088		606		10,930		43,764		53,415		53		9,187		44,281
Plymouth Meeting Mall		159,802		426		28,256		131,972		140,165		17,032		20,149		137,048
The Mall at Prince Georges		100,654		—		32,782		67,872		100,168		—		29,645		70,523
South Mall		33,728		—		6,107		27,621		33,367		—		5,128		28,239
Uniontown Mall		39,955		—		9,750		30,205		38,782		—		8,170		30,612
Valley Mall		92,081		—		21,252		70,829		91,657		—		18,326		73,331
Valley View Mall		67,602		—		12,977		54,625		67,346		—		11,049		56,297
Viewmont Mall		90,359		—		17,600		72,759		88,871		—		14,333		74,538
Voorhees Town Center		66,001		20,774		13,950		72,825		59,639		22,355		9,799		72,195
Washington Crown Center		40,249		—		12,826		27,423		40,366		—		11,562		28,804
Willow Grove Park		189,032		23,943		45,471		167,504		189,166		23,943		40,582		172,527
Wiregrass Commons Mall		52,072		—		9,159		42,913		51,858		4		7,268		44,594
Woodland Mall		185,530		—		28,070		157,460		185,382		34		22,983		162,433
Wyoming Valley Mall		107,913		—		22,251		85,662		106,075		—		18,219		87,856

Total Consolidated Malls		3,337,059		67,098		697,253		2,706,904		3,226,978		148,008		580,285		2,794,701
Unconsolidated Malls
Lehigh Valley Mall		41,516		21		17,338		24,199		40,377		517		15,414		25,480
Springfield Mall		55,269		4		10,117		45,156		55,225		36		8,384		46,877

Total Unconsolidated Malls		96,785		25		27,455		69,355		95,602		553		23,798		72,357

TOTAL MALLS	$	3,433,844	$	67,123	$	724,708	$	2,776,259	$	3,322,580	$	148,561	$	604,083	$	2,867,058

⁽¹⁾

⁽²⁾	Includes impairment of $62,700 recorded in the 4th Quarter 2009.

Page 24

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾(continued)

(in thousands)


	December 31, 2010								December 31, 2009
	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	$	42,020	$	—	$	12,288	$	29,732	$	40,980	$	—	$	11,078	$	29,902
Creekview Center		—		—		—		—		19,104		—		7,437		11,667
The Commons at Magnolia		12,674		—		3,347		9,327		11,477		506		3,974		8,009
Monroe Marketplace		—		—		—		—		45,427		7,473		1,782		51,118
New River Valley Center		—		—		—		—		26,744		—		2,197		24,547
Paxton Towne Centre		57,147		—		16,198		40,949		56,793		—		14,370		42,423
Pitney Road Plaza		—		—		—		—		6,411		1,348		33		7,726
Sunrise Plaza		—		—		—		—		25,831		4,188		2,153		27,866

Total Consolidated Strip and Power Centers		111,841		—		31,833		80,008		232,767		13,515		43,024		203,258
Unconsolidated Strip and Power Centers
Metroplex Shopping Center		42,180		—		15,315		26,865		42,168		8		13,759		28,417
The Court at Oxford Valley		27,883		—		8,600		19,283		27,863		20		7,983		19,900
Red Rose Commons		13,178		—		3,936		9,242		12,728		—		3,580		9,148
Whitehall Mall		16,954		—		8,570		8,384		15,749		267		8,118		7,898
Springfield Park		7,285		—		1,531		5,754		7,285		—		1,340		5,945

Total Unconsolidated Strip and Power Centers		107,480		—		37,952		69,528		105,793		295		34,780		71,308

TOTAL STRIP AND POWER CENTERS	$	219,321	$	—	$	69,785	$	149,536	$	338,560	$	13,810	$	77,804	$	274,566

Consolidated Properties Under Development
Springhills ⁽²⁾	$	—	$	21,984	$	—	$	21,984	$	—	$	21,961	$	—	$	21,961
White Clay Point ⁽³⁾		—		32,465		—		32,465		—		31,747		—		31,747

Total Consolidated Properties Under Development		—		54,449		—		54,449		—		53,708		—		53,708
Unconsolidated Properties Under Development
Pavilion at Market East		6,240		728		1,292		5,676		6,924		718		1,271		6,371

Total Unconsolidated Properties Under Development		6,240		728		1,292		5,676		6,924		718		1,271		6,371
Other Properties
Land held for development - consolidated		17,021		—		—		17,021		9,520		—		—		9,520

Total Other Properties		17,021		—		—		17,021		9,520		—		—		9,520

TOTAL DEVELOPMENT AND OTHER	$	23,261	$	55,177	$	1,292	$	77,146	$	16,444	$	54,426	$	1,271	$	69,599

TOTAL INVESTMENT IN REAL ESTATE	$	3,676,426	$	122,300	$	795,785	$	3,002,941	$	3,677,584	$	216,797	$	683,158	$	3,211,223

CONSOLIDATED PROPERTIES	$	3,465,921	$	121,547	$	729,086	$	2,858,382	$	3,469,265	$	215,231	$	623,309	$	3,061,187
UNCONSOLIDATED PROPERTIES		210,505		753		66,699		144,559		208,319		1,566		59,849		150,036

TOTAL INVESTMENT IN REAL ESTATE	$	3,676,426	$	122,300	$	795,785	$	3,002,941	$	3,677,584	$	216,797	$	683,158	$	3,211,223

⁽¹⁾

⁽²⁾	Includes impairment of $11,484 recorded in the 4th Quarter 2009.

⁽³⁾	Includes impairment of $11,799 recorded in the 4th Quarter 2008.

Page 25

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)


	Quarter Ended December 31, 2010							Year Ended December 31, 2010
	Consolidated		Unconsolidated			Total		Consolidated		Unconsolidated		Total
Redevelopment projects with incremental
GLA and/or anchor replacement	$	7,604	$	45		$	7,649	$	13,883	$	1,115	$	14,998
New development projects		175		—			175		905		—		905
Tenant allowances		7,664		(7	)		7,657		18,129		418		18,547
Recurring capital expenditures:
CAM expenditures		7,062		68			7,130		11,511		124		11,635
Non-CAM expenditures		1,154		59			1,213		4,281		59		4,340

Total recurring capital expenditures		8,216		127			8,343		15,792		183		15,975

Total	$	23,659	$	165		$	23,824	$	48,709	$	1,716	$	50,425

Page 26

Pennsylvania Real Estate Investment Trust

Debt Analysis as of December 31, 2010

(in thousands)


	Outstanding Debt
	Fixed Rate ⁽¹⁾			% of Total Indebtedness			Variable Rate			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable ⁽²⁾	$	1,736,280			72.3	%	$	7,968			0.3	%	$	1,744,248			72.6	%
Unconsolidated mortgage loans payable		163,590			6.8	%		12,103			0.5	%		175,693			7.3	%
Exchangeable notes ⁽³⁾		134,091			5.6	%		—			0.0	%		134,091			5.6	%
Revolving Facility		—			0.0	%		—			0.0	%		—			0.0	%
Term Loans ^{(4) (5)}		300,000			12.5	%		47,200			2.0	%		347,200			14.5	%

TOTAL OUTSTANDING DEBT	$	2,333,961			97.2	%	$	67,271			2.8	%	$	2,401,232			100.0	%

AVERAGE STATED INTEREST RATE		5.74	%					5.07	%					5.72	%

⁽¹⁾	Includes variable rate debt swapped to fixed rate debt.

⁽²⁾	Includes debt premium of $1,859

⁽³⁾	Includes debt discount of $2,809

⁽⁴⁾

We entered into interest rate swap agreements to fix $100,000 of the underlying LIBOR associated with the term loans at an average rate of 1.77% for the three-year initial term. An additional $200,000 of the underlying LIBOR was swapped to fixed at a rate of 0.61% for year one, 1.78% for year two and 2.96% for the balance of the initial term.

⁽⁵⁾	The variable rate amount includes $15.7 million that is subject to a LIBOR cap with a strike rate of 2.5%. The LIBOR cap expires in March 2012.


	Average Debt Balance
			Mortgage Debt ^(1) (2)		Revolving Facility		Term Loans		Exchangeable Notes		Exchangeable Notes Discount			TOTAL
Beginning Balance		9/30/2010	$	1,928,657	$		$	347,200	$	136,900	$	(3,282	)	$	2,409,475
Mortgage loan amortization				(6,066)		—		—		—		—			(6,066)
Springfield Mall mortgage repayment				(36,150)		—		—		—		—			(36,150)
Springfield Mall mortgage financing				33,500		—		—		—		—			33,500
Exchangeable notes discount amortization				—		—		—		—		473			473

Ending Balance		12/31/2010	$	1,919,941	$	—	$	347,200	$	136,900	$	(2,809	)	$	2,401,232

Weighted Average Balance			$	1,925,729	$	—	$	347,200	$	136,900	$	(3,125)		$	2,406,705

⁽¹⁾	Includes debt premium.

⁽²⁾	Includes the amortization of debt premium and balloon payments.


	Debt Maturities⁽¹⁾
Year	Scheduled Amortization		Debt Premium Amortization		Mortgage Balance at Maturity		Revolving Facility		Term Loans		Exchangeable Notes		Exchangeable Notes Discount Amortization			Total Debt
2011	$	23,516	$	1,153	$	160,808	$	—	$	—	$	—	$	(1,960	)	$	183,517
2012		21,034		416		363,345		—		—		136,900		(849	)		520,846
2013		15,770		—		430,773		—		347,200		—		—			793,743
2014		14,223		—		99,203		—		—		—		—			113,426
2015		13,243		—		305,896		—		—		—		—			319,139
2016		3,220		—		219,480		—		—		—		—			222,700
2017		2,447		—		150,000		—		—		—		—			152,447
Thereafter		5,586		—		89,828		—		—		—		—			95,414

	$	99,039	$	1,569	$	1,819,333	$	—	$	347,200	$	136,900	$	(2,809	)	$	2,401,232

⁽¹⁾

The weighted average period to mortgage maturity is 3.75 years, excluding extension options. Excludes debt premium on mortgage loans and debt discount on exchangeable notes. Includes 100% of mortgage debt from consolidated properties and our share of mortgage debt from unconsolidated properties, based on our ownership percentage.


	Weighted Average Mortgage Interest Rates
	Interest Rate					Marked to Market Interest Rate (GAAP) ⁽¹⁾
Year	Balance		Interest Rate			Balance		Interest Rate
2011	$	161,771		6.21	%	$	161,771		6.21	%
2012		374,817		6.07	%		374,817		5.67	%
2013		437,713		5.47	%		437,713		5.47	%
2014		103,603		7.28	%		103,603		7.28	%
2015		340,692		5.22	%		340,692		5.22	%
2016		239,915		5.22	%		239,915		5.22	%
Thereafter		259,861		5.60	%		259,861		5.60	%

Total	$	1,918,372		5.83	%	$	1,918,372		5.75	%

⁽¹⁾	Excludes amortization of debt issuance costs.

Page 27

Pennsylvania Real Estate Investment Trust

Debt Schedule as of December 31, 2010

(in thousands)


		Proportionate Share⁽¹⁾
	Lender	Debt		Debt Premium/ (Discount)		Total		Interest Rate		Marked to Market Interest Rate (GAAP)		Annual Debt Service		Balance at Maturity		Maturity Date
Fixed Rate Mortgage Loans
Christiana Center ^{(2) (3)}	Bank	$	45,000	$	—	$	45,000		5.87%		5.87%	$	2,642	$	45,000	June 2011
Paxton Towne Centre ^{(2) (3)}	Bank		54,000		—		54,000		5.84%		5.84%		3,152		54,000	July 2011
The Court at Oxford Valley	Life Insurance Co		16,509		—		16,509		8.02%		8.02%		2,319		16,003	July 2011
Metroplex Shopping Center	CMBS		29,241		—		29,241		7.25%		7.25%		2,681		28,785	Nov 2011
Capital City Mall	CMBS		48,832		949		49,781		7.61%		5.50%		4,603		47,898	Feb 2012
Beaver Valley Mall	CMBS		43,299		—		43,299		7.36%		7.36%		3,972		42,266	Apr 2012
Pavilion East Associates ⁽²⁾	Bank		3,900		—		3,900		6.15%		6.15%		240		3,708	Aug 2012
Cherry Hill Mall	Life Insurance Co		184,145		—		184,145		5.42%		5.42%		13,510		177,689	Oct 2012
Cherry Hill Mall Supplemental Loan	Life Insurance Co		54,387		—		54,387		5.51%		5.51%		3,030		53,003	Oct 2012
Cumberland Mall Loan #1	CMBS		40,254		620		40,874		6.50%		5.40%		3,413		38,782	Nov 2012
New River Valley Mall ^{(2) (4)}	Bank		25,000		—		25,000		6.33%		6.33%		1,583		25,000	Jan 2013
Dartmouth Mall	CMBS		61,213		—		61,213		4.95%		4.95%		4,484		57,594	June 2013
Moorestown Mall	CMBS		56,185		—		56,185		4.95%		4.95%		4,115		52,863	June 2013
Jacksonville Mall ^{(2) (3)}	Bank		56,265		—		56,265		5.83%		5.83%		3,277		56,265	Sept 2013
Logan Valley Mall ^{(2) (3)}	Bank		68,000		—		68,000		5.79%		5.79%		3,939		68,000	Sept 2013
Wyoming Valley Mall ^{(2) (3)}	Bank		65,000		—		65,000		5.85%		5.85%		3,803		65,000	Sept 2013
Francis Scott Key Mall ⁽²⁾	Bank		55,000		—		55,000		5.25%		5.25%		2,885		55,000	Dec 2013
Viewmont Mall ⁽²⁾	Bank		48,000		—		48,000		5.25%		5.25%		2,518		48,000	Dec 2013
Exton Square Mall	Life Insurance Co		68,813		—		68,813		7.50%		7.50%		5,873		66,733	Jan 2014
Lycoming Mall	Bank		34,790		—		34,790		6.84%		6.84%		3,001		32,470	Jul 2014
Springfield East ^{(2) (5)}	Bank		2,274		—		2,274		5.39%		5.39%		92		2,061	March 2015
Springfield Park ^{(2) (5)}	Bank		2,670		—		2,670		5.39%		5.39%		108		2,419	March 2015
Magnolia Mall	CMBS		60,711		—		60,711		5.33%		5.33%		4,413		54,842	July 2015
Patrick Henry Mall	Life Insurance Co		93,309		—		93,309		6.34%		6.34%		7,743		83,210	Oct 2015
Springfield Mall ⁽²⁾	Bank		33,500		—		33,500		4.77%		4.77%		2,118		30,740	Nov 2015
Willow Grove Park	Life Insurance Co		148,228		—		148,228		5.65%		5.65%		11,083		132,624	Dec 2015
Valley Mall	CMBS		86,715		—		86,715		5.49%		5.49%		5,014		78,996	Mar 2016
Woodland Mall	CMBS		153,200		—		153,200		5.58%		5.58%		10,760		140,484	Apr 2016
The Mall at Prince Georges	CMBS		150,000		—		150,000		5.51%		5.51%		8,269		150,000	June 2017
Whitehall Mall	Life Insurance Co		5,856		—		5,856		7.00%		7.00%		574		4,148	Nov 2018
Cumberland Mall Loan #2	Bank		2,511		—		2,511		5.00%		5.00%		390		—	Dec 2018
Lehigh Valley Mall	Life Insurance Co		69,640		—		69,640		5.88%		5.88%		4,972		58,519	July 2020
Valley View Mall	CMBS		31,854		—		31,854		5.95%		5.95%		2,290		27,161	July 2020

Total Fixed Rate Mortgage Loans			1,898,301		1,569		1,899,870		5.84%		5.76%		132,865		1,799,263

Variable Rate Mortgage Loans
One Cherry Hill Plaza ⁽⁶⁾	Bank		4,918		—		4,918		1.56%		1.56%		77		4,918	Aug 2011
Red Rose Commons ⁽⁷⁾	Bank		12,103		—		12,103		6.00%		6.00%		726		12,102	Oct 2011
New River Valley Mall ⁽⁴⁾	Bank		3,050		—		3,050		4.82%		4.82%		147		3,050	Jan 2013

Total Variable Rate Mortgage Loans			20,071		—		20,071		4.73%		4.73%		950		20,070

Total Mortgage Loans		$	1,918,372	$	1,569	$	1,919,941		5.83%		5.75%	$	133,815	$	1,819,333

CONSOLIDATED MORTGAGE LOANS		$	1,742,679	$	1,569	$	1,744,248		5.80%		5.71%	$	119,985	$	1,660,848
UNCONSOLIDATED MORTGAGE LOANS			175,693		—		175,693		6.13%		6.13%		13,830		158,485
EXCHANGEABLE NOTES ⁽⁸⁾			136,900		(2,809)		134,091		4.00%		5.84%		5,476		136,900	May 2012
REVOLVING FACILITY ^{(9) (10)}			—		—		—		5.22%		5.22%		—		—	March 2013
TERM LOAN - FIXED RATE ^{(9) (11)}			300,000		—		300,000		5.90%		5.90%		17,692		300,000	March 2013
TERM LOAN - VARIABLE RATE ^(9) (12)			47,200		—		47,200		5.22%		5.22%		2,464		47,200	March 2013

Total		$	2,402,472	$	(1,240)	$	2,401,232		5.72%		5.76%	$	159,447	$	2,303,433

AMORTIZATION OF DEFERRED FINANCING FEES			—		—		—		0.00%		0.38%		—		—

EFFECTIVE INTEREST RATE		$	2,402,472	$	(1,240)	$	2,401,232		5.72%		6.14%	$	159,447	$	2,303,433

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

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

⁽³⁾	The mortgage loan has two one year extension options.

⁽⁴⁾	The mortgage loan has one one year extension option.

⁽⁵⁾	The mortgage loan has one five year extension option.

⁽⁶⁾	The mortgage loan has two one year extension options. The first option was exercised in June 2009 for the period August 2009 to August 2010. The second option was exercised in July 2010 for the period August 2010 to August 2011.

⁽⁷⁾	The mortgage loan has an interest rate floor of 6.0%.

⁽⁸⁾	The marked to market interest rate includes the effect of deferred financing fee amortization and debt discount amortization.

⁽⁹⁾	Secured by first mortgage liens on 20 properties and a second mortgage lien on one property. See page 30 for property detail.

⁽¹⁰⁾	The total available to borrow against the 2010 Revolving Facility is $148.5 million.

⁽¹¹⁾

⁽¹²⁾	Includes $15.7 million that is subject to a LIBOR cap with a strike rate of 2.5%. The LIBOR cap expires in March 2012.

Page 28

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios ⁽¹⁾


	December 31, 2010
Consolidated Liabilities to Gross Asset Value		67.11	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 75%
EBITDA to Interest Expense		1.85
EBITDA may not be less than 1.60 to 1.00
Adjusted EBITDA to Fixed Charges		1.57
Adjusted EBITDA may not be less than 1.35 to 1.00
Corporate Debt Yield		10.96	%
The ratio of EBITDA to total indebtedness may not be less than 9.50%
Facility Debt Yield		11.08	%
The ratio of NOI for Collateral Properties to Facility Amount


Collateral Properties ⁽²⁾
Chambersburg Mall	Nittany Mall	The Plaza at Magnolia
Crossroads Mall	North Hanover Mall	South Mall
Gadsden Mall	Orlando Fashion Square	Uniontown Mall
The Gallery at Market East I	P&S Office Building	Voorhees Town Center
The Gallery at Market East II	Palmer Park Mall	Washington Crown Center
The Commons at Magnolia	Phillipsburg Mall	Westgate Anchor Pad
New River Valley Mall ⁽²⁾	Plymouth Meeting Mall	Wiregrass Commons Mall

⁽¹⁾

The amended, restated and consolidated senior secured credit agreement dated as of March 11, 2010 (the “2010 Credit Facility”) contains affirmative and negative covenants customarily found in such agreements, including requirements that the Company, on a consolidated basis, maintain certain financial ratios. All capitalized terms used on this page have the meanings ascribed to such terms in the 2010 Credit Facility. In addition to the ratios set forth herein,iti there are several other ratios under the 2010 Credit Agreement with which the Company must comply, all of which are described in the Company’s Current Report on Form 8-K dated March 11, 2010. The Company has filed the 2010 Credit Agreement and related material agreements in accordance with the rules and regulations of the Securities and Exchange Commission.

⁽²⁾	All properties secured by first mortgage liens except for New River Valley Mall, which is secured by second mortgage lien.

Page 29

Pennsylvania Real Estate Investment Trust

Shareholder Information


Ten Largest Institutional Shareholders:	Common Shares Held ⁽¹⁾
Vanguard Group, Inc.		5,835,101
BlackRock Institutional Trust Company, N.A.		4,271,999
JP Morgan Asset Management		2,382,086
Dreman Value Management, L.L.C.		2,343,322
State Street Global Advisors (US)		1,891,003
Deutsche Investment Management Americas, Inc.		1,847,114
Cohen & Steers Capital Management, Inc.		1,484,543
Pacific Heights Asset Management, LLC		1,000,000
Samlyn Capital		905,000
Integrity Asset Management, LLC		883,403

*TOTAL of Ten Largest Institutional:*		22,843,571
*TOTAL of all Institutional Holders:*		38,639,075
*Ten Largest as % of Total Institutional:*		59.1	%

⁽¹⁾	Based on 13F and 13G filings as of December 31, 2010 or most recent filings.


Breakdown of Share & Unit Ownership: Shares Held	Most Recent		% of Outstanding			December 31, 2009
Institutional ⁽¹⁾		38,639,075		66.9	%		24,266,770
Retail ⁽²⁾		13,992,951		24.2	%		18,359,983
Insiders ⁽³⁾		5,133,095		8.9	%		4,317,448

*TOTAL*		57,765,121		100.0	%		46,944,201

⁽¹⁾	Based on 13F and 13G filings as of December 31, 2010 or most recent filings.

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

⁽³⁾	Insider holdings as of March 31, 2010 (Shares and OP Units only). Excludes 136,025 exercisable options. See proxy statement dated April 29, 2010 for more details.

Page 30

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. The Company computes Funds From Operations by taking the amount determined pursuant to the NAREIT definition and subtracting dividends on preferred shares (“FFO”)(for periods during which the Company had preferred shares outstanding).

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 Funds From Operations 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 or losses on the sale of 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 operating 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. NOI excludes interest and other income, general and administrative expenses, interest expense, depreciation and amortization, gains on sales of interests in real estate, gains or sales of non-operating real estate, gains on sales of discontinued operations, gain on extinguishment of debt, impairment losses, abandoned project costs and other expenses

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.

Page 31

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