PENNSYLVANIA REAL ESTATE INVESTMENT TRUST - FORM 8-K - EX-99.1 - QUARTERLY SUPPLEMENTAL DISCLOSURE

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Exhibit 99.1

Pennsylvania Real Estate Investment Trust^®

LOGO

Supplemental Financial and Operating Information

Quarter Ended June 30, 2011

www.preit.com

NYSE: PEI

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

June 30, 2011

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 June 30, 2011 and June 30, 2010			4
Statement of Operations - Proportionate Consolidation Method - Six Months Ended June 30, 2011 and June 30, 2010			5
Net Operating Income - Quarters Ended June 30, 2011 and June 30, 2010			6
Net Operating Income - Six Months Ended June 30, 2011 and June 30, 2010			7
Computation of Earnings Per Share			8
Funds From Operations and Funds Available for Distribution - Quarters Ended June 30, 2011 and June 30, 2010			9
Funds From Operations and Funds Available for Distribution - Six Months Ended June 30, 2011 and June 30, 2010			10
*Operating Statistics*
Leasing Activity Summary			11
Summarized Rent Per Square Foot and Occupancy Percentages			12
Mall Sales and Rent Per Square Foot			13
Mall Occupancy - Owned GLA			14
Strip and Power Center Rent Per Square Foot and Occupancy Percentages			15
Top Twenty Tenants			16
Lease Expirations			17
Retail 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; 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, 2010. 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. As of June 30, 2011 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

Third Quarter 2011 October 27, 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

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

Sidoti & Company, LLC	Jeffrey Lau	(212) 453-7029

Stifel Nicolaus	Nathan Isbee	(443) 224-1346
	Jennifer Hummert	(443) 224-1288

Page 1

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

May 5, 2011 - 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:

July 28, 2011 - PREIT announced that new retailers are joining PREIT malls.

July 28, 2011 - PREIT announced that jcpenney, Nordstrom Rack, Bravo Cucina Italiana and Forever 21 have signed leases at Willow Grove Park in Willow Grove, PA.

May 18, 2011 - PREIT announced the opening of transformative community-based services at Voorhees Town Center in Voorhees, NJ and Orlando Fashion Square in Orlando, FL.

Financing activities:

June 30, 2011 - PREIT announced the amendment and extension of its $490 Million Credit Facility and the refinancing of two mortgage loans.

Other activities:

July 12, 2011 - PREIT scheduled its Second Quarter 2011 earnings call for Thursday, July 28, 2011.

June 6, 2011 - PREIT announced the results of the annual meeting of shareholders.

June 6, 2011 - PREIT announced it will present at REITWeek 2011, NAREIT’s Invester Forum in New York, NY.

April 15, 2011 - PREIT scheduled its First Quarter 2011 earnings call for Wednesday, April 27, 2011.

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

(in thousands, except per share amounts)


	Quarter Ended June 30,						Year Ended December 31,
	2011			2010			2010			2009
TRADING INFORMATION
High Price per share	$	17.34		$	17.35		$	17.35		$	9.13
Low Price per share	$	13.64		$	11.85		$	8.35		$	2.20
Closing Share Price (at the end of period)	$	15.70		$	12.22		$	14.53		$	8.46
MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding		55,686			55,318			55,436			44,615
OP Units Outstanding		2,329			2,329			2,329			2,329

Total Shares and OP Units Outstanding		58,015			57,647			57,765			46,944


Equity Market Capitalization—Shares and OP Units	$	910,832		$	704,440		$	839,327		$	397,148

DEBT CAPITALIZATION ⁽¹⁾
Secured Debt Balance ⁽²⁾	$	2,233,228		$	2,389,267		$	2,265,572		$	1,956,193
Unsecured Debt Balance ^{(3) (4)}		136,900			136,900			136,900			792,900

Debt Capitalization		2,370,128			2,526,167			2,402,472			2,749,093

TOTAL MARKET CAPITALIZATION	$	3,280,960		$	3,230,607		$	3,241,799		$	3,146,241


*Equity Capitalization/Total Market Capitalization*		27.8%			21.8%			25.9%			12.6%
*Debt Capitalization/Total Market Capitalization*		72.2%			78.2%			74.1%			87.4%
*Unsecured Debt Balance/Total Debt*		5.8%			5.4%			5.7%			28.8%

DISTRIBUTIONS PER COMMON SHARE
Ordinary Income		⁽⁵	⁾	$	0.150		$	0.600		$	0.630
Capital Gain		⁽⁵	⁾		-			-			0.110
Return of Capital/Non-Taxable		⁽⁵	⁾		-			-			-


Distributions per share	$	0.150		$	0.150		$	0.600		$	0.740

Annualized Dividend Yield ⁽⁶⁾		3.8%			4.9%			4.1%			8.7%

CAPITAL RESOURCES

Cash and Cash Equivalents	$	29,388		$	33,157		$	47,107		$	77,147

Revolving Credit Facility		250,000			150,000			150,000			500,000
Amount Outstanding		(70,000	)		-			-			(486,000	)
Letters of Credit		(561	)		(1,534	)		(1,534	)		(3,030	)

Available Revolving Credit Facility ⁽⁷⁾		179,439			148,466			148,466			10,970

TOTAL	$	208,827		$	181,623		$	195,573		$	88,117


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

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

⁽²⁾	The secured debt balance includes $240,000 in Term Loans and a $70,000 Revolving Facility as of June 30, 2011.

⁽³⁾	The unsecured debt balance included $170,000 in a senior unsecured 2008 Term Loan and $486,000 in outstanding Credit Facility borrowings for the year ended December 31, 2009.

⁽⁴⁾	The unsecured debt balance includes exchangeable notes of $136,900 for all periods presented.

⁽⁵⁾	Tax status of 2011 dividend payments will be available in January 2012.

⁽⁶⁾	Based on closing share price at the end of the period.

⁽⁷⁾	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 June 30, 2011 and June 30, 2010

Proportionate Consolidation Method

(in thousands)


	Quarter Ended June 30, 2011											Quarter Ended June 30, 2010
	GAAP			Share of unconsolidated partnerships⁽¹⁾			Discontinued operations		Total			GAAP			Share of unconsolidated partnerships⁽¹⁾			Discontinued operations			Total
REVENUE:
Base rent	$	70,934		$	6,361		$	-	$	77,295		$	71,013		$	6,528		$	2,618		$	80,159
Expense reimbursements		31,355			2,547			-		33,902			32,175			2,694			534			35,403
Percentage rent		715			-			-		715			641			14			-			655
Lease termination revenue		693			-			-		693			373			275			-			648
Other real estate revenue		3,694			337			-		4,031			3,498			286			3			3,787

Real estate revenue		107,391			9,245			-		116,636			107,700			9,797			3,155			120,652
Interest and other income		809			-			-		809			598			-			-			598

Total revenue		108,200			9,245			-		117,445			108,298			9,797			3,155			121,250

EXPENSES:
Operating expenses:
CAM and real estate taxes		(35,260	)		(2,066	)		-		(37,326	)		(34,932	)		(2,063	)		(579	)		(37,574	)
Utilities		(6,078	)		(229	)		-		(6,307	)		(6,165	)		(219	)		(1	)		(6,385	)
Other operating expenses		(6,129	)		(587	)		-		(6,716	)		(6,349	)		(612	)		(24	)		(6,985	)

Total operating expenses		(47,467	)		(2,882	)		-		(50,349	)		(47,446	)		(2,894	)		(604	)		(50,944	)

Depreciation and amortization		(36,614	)		(2,358	)		-		(38,972	)		(40,274	)		(2,102	)		(1,324	)		(43,700	)
Other expenses:
General and administrative expenses		(10,433	)		-			-		(10,433	)		(9,617	)		-			-			(9,617	)
Project costs and other expenses		(353	)		-			-		(353	)		(161	)		-			-			(161	)

Total other expenses		(10,786	)		-			-		(10,786	)		(9,778	)		-			-			(9,778	)

Interest expense, net ⁽²⁾		(34,941	)		(2,858	)		-		(37,799	)		(37,998	)		(1,853	)		(627	)		(40,478	)

Total expenses		(129,808	)		(8,098	)		-		(137,906	)		(135,496	)		(6,849	)		(2,555	)		(144,900	)

Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate		(21,608	)		1,147			-		(20,461	)		(27,198	)		2,948			600			(23,650	)
Equity in income of partnerships		1,147			(1,147	)		-		-			2,948			(2,948	)		-			-
Gains on sales of real estate		740			-			-		740			-			-			-			-
Gains on sales of non-operating real estate		710			-			-		710			-			-			-			-

Loss from continuing operations		(19,011	)		-			-		(19,011	)		(24,250	)		-			600			(23,650	)
Discontinued operations:
Operating results from discontinued operations		-			-			-		-			600			-			(600	)		-

Income from discontinued operations		-			-			-		-			600			-			(600	)		-

Net loss		(19,011	)		-			-		(19,011	)		(23,650	)		-			-			(23,650	)
Less: net loss attributable to noncontrolling interest		763			-			-		763			964			-			-			964

Net loss attributable to PREIT	$	(18,248	)	$	-		$	-	$	(18,248	)	$	(22,686	)	$	-		$	-		$	(22,686	)

⁽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 $367 and $943 for the quarters ended June 30, 2011 and 2010, respectively.

Page 4

Pennsylvania Real Estate Investment Trust

Statement of Operations - Six Months Ended June 30, 2011 and June 30, 2010

Proportionate Consolidation Method

(in thousands)


	Six Months Ended June 30, 2011											Six Months Ended June 30, 2010
	GAAP			Share of unconsolidated partnerships⁽¹⁾			Discontinued operations		Total			GAAP			Share of unconsolidated partnerships⁽¹⁾			Discontinued operations			Total
REVENUE:
Base rent	$	142,694		$	12,740		$	-	$	155,434		$	142,854		$	12,764		$	5,231		$	160,849
Expense reimbursements		65,118			5,141			-		70,259			66,410			5,406			1,111			72,927
Percentage rent		1,696			21			-		1,717			1,525			27			-			1,552
Lease termination revenue		718			-			-		718			2,181			275			-			2,456
Other real estate revenue		6,727			642			-		7,369			6,460			563			6			7,029

Real estate revenue		216,953			18,544			-		235,497			219,430			19,035			6,348			244,813
Interest and other income		1,727			-			-		1,727			1,326			-			-			1,326

Total revenue		218,680			18,544			-		237,224			220,756			19,035			6,348			246,139

EXPENSES:
Operating expenses:
CAM and real estate taxes		(72,564	)		(4,365	)		-		(76,929	)		(71,501	)		(4,407	)		(1,312	)		(77,220	)
Utilities		(11,909	)		(425	)		-		(12,334	)		(12,466	)		(417	)		(3	)		(12,886	)
Other operating expenses		(12,087	)		(1,099	)		-		(13,186	)		(12,136	)		(1,175	)		(59	)		(13,370	)

Total operating expenses		(96,560	)		(5,889	)		-		(102,449	)		(96,103	)		(5,999	)		(1,374	)		(103,476	)

Depreciation and amortization		(71,124	)		(4,328	)		-		(75,452	)		(81,004	)		(4,561	)		(2,601	)		(88,166	)
Other expenses:
General and administrative expenses		(20,015	)		-			-		(20,015	)		(19,303	)		-			-			(19,303	)
Project costs and other expenses		(497	)		-			-		(497	)		(455	)		-			-			(455	)

Total other expenses		(20,512	)		-			-		(20,512	)		(19,758	)		-			-			(19,758	)

Interest expense, net ⁽²⁾		(68,554	)		(5,637	)		-		(74,191	)		(72,204	)		(3,437	)		(1,252	)		(76,893	)

Total expenses		(256,750	)		(15,854	)		-		(272,604	)		(269,069	)		(13,997	)		(5,227	)		(288,293	)

Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate		(38,070	)		2,690			-		(35,380	)		(48,313	)		5,038			1,121			(42,154	)
Equity in income of partnerships		2,690			(2,690	)		-		-			5,038			(5,038	)		-			-
Gains on sales of real estate		740			-			-		740			-			-			-			-
Gains on sales of non-operating real estate		710			-					710			-			-			-			-

Loss from continuing operations		(33,930	)		-			-		(33,930	)		(43,275	)		-			1,121			(42,154	)
Discontinued operations
Operating results from discontinued operations		-			-			-		-			1,121			-			(1,121	)		-

Income from discontinued operations		-			-			-		-			1,121			-			(1,121	)		-

Net loss		(33,930	)		-			-		(33,930	)		(42,154	)		-			-			(42,154	)
Less: net loss attributable to noncontrolling interests		1,364			-			-		1,364			1,842			-			-			1,842

Net loss attributable to PREIT	$	(32,566	)	$	-		$	-	$	(32,566	)	$	(40,312	)	$	-		$	-		$	(40,312	)

⁽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 $765 and $1,478 for the six months ended June 30, 2011 and 2010, respectively.

Page 5

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Quarters Ended June 30, 2011 and 2010

(in thousands)


	Quarter Ended June 30, 2011									Quarter Ended June 30, 2010
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	76,956		$	339		$	77,295		$	77,148		$	3,011		$	80,159
Expense reimbursements		33,893			9			33,902			34,854			549			35,403
Percentage rent		715			-			715			655			-			655
Lease termination revenue		693			-			693			648			-			648
Other real estate revenue		3,909			122			4,031			3,666			121			3,787

TOTAL REAL ESTATE REVENUE		116,166			470			116,636			116,971			3,681			120,652


Operating expenses:
CAM and real estate taxes		(36,917	)		(409	)		(37,326	)		(36,633	)		(941	)		(37,574	)
Utilities		(6,307	)		-			(6,307	)		(6,384	)		(1	)		(6,385	)
Other operating expenses		(6,660	)		(56	)		(6,716	)		(6,922	)		(63	)		(6,985	)

TOTAL OPERATING EXPENSES		(49,884	)		(465	)		(50,349	)		(49,939	)		(1,005	)		(50,944	)

NET OPERATING INCOME	$	66,282		$	5		$	66,287		$	67,032		$	2,676		$	69,708


	Quarter Ended June 30, 2011									Quarter Ended June 30, 2010
	Quarter Ended June 30, 2011									Quarter Ended June 30, 2010
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	71,811		$	5,145		$	76,956		$	71,410		$	5,738		$	77,148
Expense reimbursements		32,699			1,194			33,893			33,674			1,180			34,854
Percentage rent		715			-			715			646			9			655
Lease termination revenue		78			615			693			648			-			648
Other real estate revenue		3,845			64			3,909			3,605			61			3,666

TOTAL REAL ESTATE REVENUE		109,148			7,018			116,166			109,983			6,988			116,971


Operating expenses:
CAM and real estate taxes		(35,678	)		(1,239	)		(36,917	)		(35,324	)		(1,309	)		(36,633	)
Utilities		(6,216	)		(91	)		(6,307	)		(6,327	)		(57	)		(6,384	)
Other operating expenses		(6,560	)		(100	)		(6,660	)		(6,806	)		(116	)		(6,922	)

TOTAL OPERATING EXPENSES		(48,454	)		(1,430	)		(49,884	)		(48,457	)		(1,482	)		(49,939	)

NET OPERATING INCOME	$	60,694		$	5,588		$	66,282		$	61,526		$	5,506		$	67,032

⁽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⁾ - Six Months Ended June 30, 2011 and 2010

(in thousands)


	Six Months Ended June 30, 2011						Six Months Ended June 30, 2010
SAME STORE RETAIL/OTHER	Same		Other		Total		Same		Other		Total
Real estate revenue:
Base rent	$	154,743	$	691	$	155,434	$	154,830	$	6,019	$	160,849
Expense reimbursements		70,238		21		70,259		71,788		1,139		72,927
Percentage rent		1,717		-		1,717		1,552		-		1,552
Lease termination revenue		718		-		718		2,456		-		2,456
Other real estate revenue		7,127		242		7,369		6,786		243		7,029

TOTAL REAL ESTATE REVENUE		234,543		954		235,497		237,412		7,401		244,813


Operating expenses:
CAM and real estate taxes		(76,110)		(819)		(76,929)		(75,226)		(1,994)		(77,220)
Utilities		(12,334)		-		(12,334)		(12,883)		(3)		(12,886)
Other operating expenses		(13,054)		(132)		(13,186)		(13,226)		(144)		(13,370)

TOTAL OPERATING EXPENSES		(101,498)		(951)		(102,449)		(101,335)		(2,141)		(103,476)

NET OPERATING INCOME	$	133,045	$	3	$	133,048	$	136,077	$	5,260	$	141,337


	Six Months Ended June 30, 2011						Six Months Ended June 30, 2010
	Six Months Ended June 30, 2011						Six Months Ended June 30, 2010
SAME STORE RETAIL COMPARISON	Malls		Strip and Power Centers		Total		Malls		Strip and Power Centers		Total
Real estate revenue:
Base rent	$	143,821	$	10,922	$	154,743	$	143,674	$	11,156	$	154,830
Expense reimbursements		67,613		2,625		70,238		69,044		2,744		71,788
Percentage rent		1,701		16		1,717		1,560		(8)		1,552
Lease termination revenue		103		615		718		2,456		-		2,456
Other real estate revenue		7,009		118		7,127		6,676		110		6,786

TOTAL REAL ESTATE REVENUE		220,247		14,296		234,543		223,410		14,002		237,412


Operating expenses:
CAM and real estate taxes		(73,328)		(2,782)		(76,110)		(72,272)		(2,954)		(75,226)
Utilities		(12,204)		(130)		(12,334)		(12,781)		(102)		(12,883)
Other operating expenses		(12,699)		(355)		(13,054)		(12,900)		(326)		(13,226)

TOTAL OPERATING EXPENSES		(98,231)		(3,267)		(101,498)		(97,953)		(3,382)		(101,335)

NET OPERATING INCOME	$	122,016	$	11,029	$	133,045	$	125,457	$	10,620	$	136,077

⁽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 June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Loss from continuing operations	$	(19,011	)	$	(24,250	)	$	(33,930	)	$	(43,275	)
Noncontrolling interest in continuing operations		763			988			1,364			1,886
Dividends on unvested restricted shares		(144	)		(168	)		(262	)		(266	)

Loss from continuing operations used to calculate earnings per share—basic and diluted	$	(18,392	)	$	(23,430	)	$	(32,828	)	$	(41,655	)


Income from discontinued operations	$	-		$	600		$	-		$	1,121
Noncontrolling interest in discontinued operations		-			(24	)		-			(44	)

Income from discontinued operations used to calculate earnings per share—basic and diluted	$	-		$	576		$	-		$	1,077


Basic loss per share
Loss from continuing operations	$	(0.34	)	$	(0.46	)	$	(0.60	)	$	(0.88	)
Income from discontinued operations		-			0.01			-			0.02

	$	(0.34	)	$	(0.45	)	$	(0.60	)	$	(0.86	)

Diluted loss per share
Loss from continuing operations	$	(0.34	)	$	(0.46	)	$	(0.60	)	$	(0.88	)
Income from discontinued operations		-			0.01			-			0.02

	$	(0.34	)	$	(0.45	)	$	(0.60	)	$	(0.86	)


Weighted average common shares outstanding		55,656			51,439			55,571			48,038
Weighted average unvested restricted shares		(976	)		(1,122	)		(1,004	)		(1,025	)

Weighted average shares outstanding—basic		54,680			50,317			54,567			47,013
Weighted average effect of common share equivalents ⁽¹⁾		-			-			-			-

Total weighted average shares outstanding—diluted		54,680			50,317			54,567			47,013

⁽¹⁾

The Company had net losses from continuing operations for all periods presented. Therefore, the effect of common share equivalents of 851 and 587 for the quarters ended June 30, 2011 and 2010, respectively, and 922 and 349 for the six months ended June 30, 2011 and 2010, 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 per share amounts)


	Quarter Ended June 30, 2011											Quarter Ended June 30, 2010
FUNDS FROM OPERATIONS (FFO)	Consolidated			Share of unconsolidated partnerships			Discontinued operations		Total			Consolidated			Share of unconsolidated partnerships			Discontinued operations			Total


Real estate revenue ⁽¹⁾	$	107,391		$	9,245		$	-	$	116,636		$	107,700		$	9,797		$	3,155		$	120,652
Operating expenses		(47,467	)		(2,882	)		-		(50,349	)		(47,446	)		(2,894	)		(604	)		(50,944	)

NET OPERATING INCOME		59,924			6,363			-		66,287			60,254			6,903			2,551			69,708
General and administrative expenses		(10,433	)		-			-		(10,433	)		(9,617	)		-			-			(9,617	)
Interest and other income		809			-			-		809			598			-			-			598
Project costs and other expenses		(353	)		-			-		(353	)		(161	)		-			-			(161	)
Interest expense, net		(34,941	)		(2,858	)		-		(37,799	)		(37,998	)		(1,853	)		(627	)		(40,478	)
Gains on sales of non operating real estate		710			-			-		710			-			-			-			-
Depreciation on non real estate assets		(222	)		-			-		(222	)		(378	)		-			-			(378	)

FFO		15,494			3,505			-		18,999			12,698			5,050			1,924			19,672
Gains on sales of real estate		740			-			-		740			-			-			-			-
Depreciation on real estate assets		(36,392	)		(2,358	)		-		(38,750	)		(39,896	)		(2,102	)		(1,324	)		(43,322	)
Equity in income of partnerships		1,147			(1,147	)		-		-			2,948			(2,948	)		-			-
Income in discontinued operations		-			-			-		-			600			-			(600	)		-

Net loss	$	(19,011	)	$	-		$	-	$	(19,011	)	$	(23,650	)	$	-		$	-		$	(23,650	)


⁽¹⁾ Total includes the non-cash effect of straight-line rent of ($515) and $356 for the quarters ended June 30, 2011 and 2010, respectively.

FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	15,494		$	3,505		$	-	$	18,999		$	12,698		$	5,050		$	1,924		$	19,672
Adjustments:
Straight line rent		441			74			-		515			(341	)		31			(46	)		(356	)
Recurring capital expenditures		(4,428	)		(110	)		-		(4,538	)		(1,616	)		(3	)		-			(1,619	)
Tenant allowances		(4,612	)		-			-		(4,612	)		(3,407	)		-			-			(3,407	)
Capitalized leasing costs		(1,366	)		-			-		(1,366	)		(1,256	)		-			-			(1,256	)
Amortization of mortgage loan premium		(294	)		-			-		(294	)		(300	)		-			-			(300	)
Amortization of above- and below-market lease intangibles		57			(44	)		-		13			61			(67	)		-			(6	)
Amortization of exchangeable notes debt discount		487						-		487			461			-			-			461
Impairment of assets		225			-			-		225			-			-			-			-

FAD	$	6,004		$	3,425		$	-	$	9,429		$	6,300		$	5,011		$	1,878		$	13,189


Weighted average number of shares outstanding										54,680												50,317
Weighted average effect of full conversion of OP Units										2,329												2,329
Effect of common share equivalents										851												587

Total weighted average shares outstanding, including OP Units										57,860												53,233


FFO									$	18,999											$	19,672
Accelerated amortization of deferred financing fees										100												2,258
Impairment of assets										225												-

FFO AS ADJUSTED									$	19,324											$	21,930

FFO PER DILUTED SHARE AND OP UNIT									$	0.33											$	0.37

FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED									$	0.33											$	0.41

FAD PER DILUTED SHARE AND OP UNIT									$	0.16											$	0.25

DIVIDEND PER COMMON SHARE									$	0.15											$	0.15


PAYOUT RATIOS

Payout ratio of FFO										36.5%	⁽²⁾											61.5%	⁽³⁾

Payout ratio of FFO as adjusted										35.7%	⁽²⁾											25.6%	⁽³⁾

Payout ratio of FAD										67.4%	⁽²⁾											36.3%	⁽³⁾

⁽²⁾	Twelve months ended June 30, 2011.

⁽³⁾	Payout ratio of FFO, as adjusted, and FAD for the twelve months ended June 30, 2010.

Page 9

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)


	Six Months Ended June 30, 2011											Six Months Ended June 30, 2010
FUNDS FROM OPERATIONS (FFO)	Consolidated			Share of unconsolidated partnerships			Discontinued operations		Total			Consolidated			Share of unconsolidated partnerships			Discontinued operations			Total


Real estate revenue ⁽¹⁾	$	216,953		$	18,544		$	-	$	235,497		$	219,430		$	19,035		$	6,348		$	244,813
Operating expenses		(96,560	)		(5,889	)		-		(102,449	)		(96,103	)		(5,999	)		(1,374	)		(103,476	)

NET OPERATING INCOME		120,393			12,655			-		133,048			123,327			13,036			4,974			141,337
General and administrative expenses		(20,015	)		-			-		(20,015	)		(19,303	)		-			-			(19,303	)
Interest and other income		1,727			-			-		1,727			1,326			-			-			1,326
Project costs and other expenses		(497	)		-			-		(497	)		(455	)		-			-			(455	)
Interest expense, net		(68,554	)		(5,637	)		-		(74,191	)		(72,204	)		(3,437	)		(1,252	)		(76,893	)
Gains on sales of non operating real estate		710			-			-		710			-			-			-			-
Depreciation on non real estate assets		(474	)		-			-		(474	)		(816	)		-			-			(816	)

FFO		33,290			7,018			-		40,308			31,875			9,599			3,722			45,196
Gains on sales of real estate		740			-			-		740						-			-			-
Depreciation on real estate assets		(70,650	)		(4,328	)		-		(74,978	)		(80,188	)		(4,561	)		(2,601	)		(87,350	)
Equity in income of partnerships		2,690			(2,690	)		-		-			5,038			(5,038	)		-			-
Income in discontinued operations		-			-			-		-			1,121			-			(1,121	)		-

Net loss	$	(33,930	)	$	-		$	-	$	(33,930	)	$	(42,154	)	$	-		$	-		$	(42,154	)


⁽¹⁾ Total includes the non-cash effect of straight-line rent of ($306) and $878 for the years ended June 30, 2011 and 2010, respectively.

FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	33,290		$	7,018		$	-	$	40,308		$	31,875		$	9,599		$	3,722		$	45,196
Adjustments:
Straight line rent		165			141					306			(838	)		51			(91	)		(878	)
Recurring capital expenditures		(4,758	)		(143	)		-		(4,901	)		(1,734	)		(47	)		-			(1,781	)
Tenant allowances		(5,841	)		-			-		(5,841	)		(5,389	)		18			-			(5,371	)
Capitalized leasing costs		(2,524	)		-			-		(2,524	)		(2,141	)		-			-			(2,141	)
Amortization of mortgage loan premium		(576	)		-			-		(576	)		(586	)		-			-			(586	)
Amortization of above- and below-market lease intangibles		104			(91	)		-		13			120			(133	)		-			(13	)
Amortization of exchangeable notes debt discount		966			-			-		966			915			-			-			915
Impairment of assets		225			-			-		225			-			-			-			-

FAD	$	21,051		$	6,925		$	-	$	27,976		$	22,222		$	9,488		$	3,631		$	35,341


Weighted average number of shares outstanding										54,567												47,013
Weighted average effect of full conversion of OP Units										2,329												2,329
Effect of common share equivalents										922												349

Total weighted average shares outstanding, including OP Units										57,818												49,691


FFO									$	40,308											$	45,196
Accelerated amortization of deferred financing fees										100												2,258
Impairment of assets										225												-

FFO AS ADJUSTED									$	40,633											$	47,454

FFO PER DILUTED SHARE AND OP UNIT									$	0.70											$	0.91

FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED									$	0.70											$	0.95

FAD PER DILUTED SHARE AND OP UNIT									$	0.48											$	0.71

DIVIDEND PER COMMON SHARE									$	0.30											$	0.30


PAYOUT RATIOS

Payout ratio of FFO										36.5%	⁽²⁾											61.5%	⁽³⁾

Payout ratio of FFO as adjusted										35.7%	⁽²⁾											25.6%	⁽³⁾

Payout ratio of FAD										67.4%	⁽²⁾											36.3%	⁽³⁾

⁽²⁾	Twelve months ended June 30, 2011.

⁽³⁾	Payout ratio of FFO, FFO as adjusted, and FAD for the twelve months ended June 30, 2010.

Page 10

Pennsylvania Real Estate Investment Trust

2011 Leasing Activity Summary


				Average Base Rent psf				Change in Base Rent psf
	Number	GLA		Previous		New		Dollar			Percentage		Annualized Tenant Improvements psf ⁽³⁾

New Leases - Previously Leased Space:

1st Quarter ⁽¹⁾	21		77,140	$	22.24	$	19.68	$	(2.56	)		-11.5%	$	1.39
2nd Quarter⁽²⁾	27		82,868		21.79		21.97		0.18			0.8%		1.45

Total/Average	48		160,008	$	22.01	$	20.87	$	(1.14	)		-5.2%	$	1.42

New Leases - Previously Vacant Space: ⁽⁴⁾

1st Quarter	20		86,463		N/A	$	16.86	$	16.86			N/A	$	2.05
2nd Quarter	39		110,003		N/A		18.38		18.38			N/A		3.40

Total/Average	59		196,466		N/A	$	17.71	$	17.71			N/A	$	2.81

Renewal: ⁽⁵⁾

1st Quarter ⁽¹⁾	81		310,673	$	22.22	$	22.23	$	0.01			0.0%	$	0.09
2nd Quarter ⁽²⁾	92		321,947		22.37		22.89		0.52			2.3%		0.05

Total/Average	173		632,620	$	22.30	$	22.57	$	0.27			1.2%	$	0.07

Anchor Renewal:

1st Quarter	5		367,162	$	2.73	$	2.73	$	-			0.0%	$	-
2nd Quarter	4		436,916		2.40		2.40		-			0.0%		-

Total/Average	9		804,078	$	2.55	$	2.55	$	-			0.0%	$	-

⁽¹⁾ Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were -5.6% for New Leases - Previously Leased Space and -6.0% for Renewals.

⁽²⁾ Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were 2.2% for New Leases - Previously Leased Space and -2.3% for Renewals.

⁽³⁾ These leasing costs are presented as annualized costs per square foot and are spread uniformly over the initial lease term.

⁽⁴⁾ This category includes newly constructed and recommissioned space.

⁽⁵⁾ This category includes expansions, relocations and lease extensions.

Page 11

Pennsylvania Real Estate Investment Trust

Summarized Rent Per Square Foot and Occupancy Percentages

June 30, 2011

June 30, 2010

Change

Occupancy⁽¹⁾

Avg Base

Rent

Total

Non- Anchor

Rent

Total

Non- Anchor

Rent

Total

Non- Anchor

Malls weighted average ⁽²⁾

$ 32.40

90.3%

86.3%

$ 32.65

90.2%

85.9%

-0.8%

0.1%

0.4%

Strip and Power Centers weighted average

$ 16.29

94.5%

91.9%

$ 16.07

95.5%

93.4%

1.4%

-1.0%

-1.5%

Retail Portfolio weighted average

$ 28.83

90.8%

87.1%

$ 28.81

90.8%

86.9%

0.1%

0.0%

0.2%

Consolidated Properties

$ 30.37

90.3%

86.1%

$ 30.62

90.2%

85.8%

-0.8%

0.1%

0.3%

Unconsolidated Properties

$ 23.59

94.1%

92.1%

$ 22.91

94.9%

93.3%

3.0%

-0.8%

-1.2%

Same Properties

$ 28.83

90.8%

87.1%

$ 28.81

90.8%

86.9%

0.1%

0.0%

0.2%

⁽¹⁾ Occupancy for both periods presented includes all tenants irrespective of the terms of their agreement. Previously, occupancy was reported excluding tenants under agreements with initial terms of less than one year.

⁽²⁾ Average base rent for tenants that lease individual spaces of 10,000 square feet or less and pay fixed rent. Average base rent for tenants greater than 10,000 square feet that pay fixed rent was $14.22/sq ft as of June 30, 2011 and $14.52/sq ft as of June 30, 2010.

Page 12

Pennsylvania Real Estate Investment Trust

Mall Sales and Rent Per Square Foot


				June 30, 2011							June 30, 2010							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		26.9	%
Cherry Hill Mall				$	46.51	$	556		13.6	%	$	46.16	$	523		14.7	%		0.8	%		6.3	%		-1.1	%
Lehigh Valley Mall					45.40		525		12.6	%		44.70		522		12.6	%		1.6	%		0.6	%		0.0	%
Woodland Mall					40.66		508		13.0	%		44.28		472		13.0	%		-8.2	%		7.6	%		0.0	%
Jacksonville Mall					33.08		487		10.4	%		33.04		496		10.0	%		0.1	%		-1.8	%		0.4	%
Sales per square foot between $350 - $400		37.6	%
Willow Grove Park					43.91		398		16.7	%		43.58		384		16.7	%		0.8	%		3.6	%		0.0	%
Dartmouth Mall					30.07		398		11.5	%		29.62		350		12.6	%		1.5	%		13.7	%		-1.1	%
The Mall at Prince Georges					36.73		390		13.7	%		36.51		369		15.3	%		0.6	%		5.7	%		-1.6	%
Patrick Henry Mall					40.34		389		13.9	%		39.05		407		13.3	%		3.3	%		-4.4	%		0.6	%
Moorestown Mall					35.84		376		15.2	%		36.73		366		15.4	%		-2.4	%		2.7	%		-0.2	%
Valley View Mall					29.70		366		11.9	%		30.49		360		11.9	%		-2.6	%		1.7	%		0.0	%
Valley Mall					25.76		366		11.0	%		26.43		303		12.2	%		-2.5	%		20.8	%		-1.2	%
Viewmont Mall					29.59		364		13.0	%		29.76		365		13.1	%		-0.6	%		-0.3	%		-0.1	%
Wyoming Valley Mall					31.26		364		12.2	%		31.17		362		12.8	%		0.3	%		0.6	%		-0.6	%
The Gallery at Market East					37.55		360		14.3	%		37.17		351		13.8	%		1.0	%		2.6	%		0.5	%
Springfield Mall					34.24		355		14.4	%		33.76		336		17.1	%		1.4	%		5.7	%		-2.7	%
Capital City Mall					33.34		353		11.8	%		33.65		353		11.8	%		-0.9	%		0.0	%		0.0	%
Sales per square foot between $300 - $349		16.3	%
Francis Scott Key Mall					27.40		334		11.5	%		26.83		326		11.7	%		2.1	%		2.5	%		-0.2	%
Plymouth Meeting Mall					31.11		326		10.4	%		31.58		277		11.0	%		-1.5	%		17.7	%		-0.6	%
Magnolia Mall					28.50		324		13.2	%		26.80		311		13.4	%		6.4	%		4.2	%		-0.2	%
Exton Square Mall					36.33		323		13.7	%		37.90		317		14.9	%		-4.1	%		1.9	%		-1.2	%
Crossroads Mall					20.76		322		9.1	%		22.35		301		9.7	%		-7.1	%		7.0	%		-0.6	%
Cumberland Mall					28.98		312		13.5	%		28.08		297		14.6	%		3.2	%		5.1	%		-1.1	%
Logan Valley Mall					26.11		310		11.2	%		26.68		306		11.5	%		-2.1	%		1.3	%		-0.3	%
Sales per square foot under $300		19.1	%
Palmer Park Mall					24.58		290		12.3	%		25.39		279		11.6	%		-3.2	%		3.9	%		0.7	%
Gadsden Mall					21.54		287		9.3	%		21.94		266		9.8	%		-1.8	%		7.9	%		-0.5	%
Uniontown Mall					22.53		287		10.7	%		22.68		279		11.0	%		-0.6	%		2.9	%		-0.3	%
Wiregrass Commons Mall					26.77		282		11.5	%		26.86		284		11.3	%		-0.3	%		-0.7	%		0.2	%
New River Valley Mall					24.62		282		10.6	%		25.96		273		10.1	%		-5.2	%		3.3	%		0.5	%
Nittany Mall					21.66		276		11.2	%		22.43		281		11.0	%		-3.4	%		-1.8	%		0.2	%
North Hanover Mall					26.66		268		12.5	%		27.58		271		12.5	%		-3.4	%		-1.1	%		0.0	%
Lycoming Mall					21.40		262		10.4	%		21.74		249		10.3	%		-1.6	%		5.2	%		0.1	%
Beaver Valley Mall					22.02		246		13.7	%		22.09		250		14.2	%		-0.3	%		-1.6	%		-0.5	%
Orlando Fashion Square					29.81		241		19.2	%		34.42		223		18.5	%		-13.4	%		8.1	%		0.7	%
South Mall					24.04		239		12.2	%		23.13		232		12.2	%		3.9	%		3.0	%		0.0	%
Washington Crown Center					19.90		239		11.8	%		21.01		235		11.5	%		-5.3	%		1.7	%		0.3	%
Chambersburg Mall					22.53		236		9.9	%		26.01		240		9.5	%		-13.4	%		-1.7	%		0.4	%
Phillipsburg Mall					23.96		227		12.3	%		24.73		220		12.1	%		-3.1	%		3.2	%		0.2	%
Voorhees Town Center					32.67		212		12.5	%		33.95		204		13.0	%		-3.8	%		3.9	%		-0.5	%

Malls weighted average				$	32.40	$	359		12.8	%	$	32.65	$	344		13.1	%		-0.8	%		4.4	%		-0.3	%
Consolidated Properties				$	31.54	$	348		12.7	%	$	31.87	$	333		13.0	%		-1.0	%		4.5	%		-0.3	%
Unconsolidated Properties				$	41.73	$	468		13.1	%	$	41.02	$	458		13.7	%		1.7	%		2.2	%		-0.6	%
Same Properties				$	32.40	$	359		12.8	%	$	32.65	$	344		13.1	%		-0.8	%		4.4	%		-0.3	%

⁽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.

Page 13

Pennsylvania Real Estate Investment Trust

Mall Occupancy⁽¹⁾ - Owned GLA


	June 30, 2011		June 30, 2010		Change
	Total	Non-Anchor	Total	Non-Anchor	Total	Non-Anchor

Beaver Valley Mall	89.4%	77.2%	89.2%	76.9%	0.2%	0.3%

Capital City Mall	97.3%	95.3%	96.5%	94.0%	0.8%	1.3%

Chambersburg Mall	84.3%	66.5%	86.9%	72.0%	-2.6%	-5.5%

Cherry Hill Mall	93.0%	91.6%	90.3%	88.3%	2.7%	3.3%

Crossroads Mall	88.9%	74.6%	87.0%	69.9%	1.9%	4.7%

Cumberland Mall	92.3%	87.3%	94.3%	90.5%	-2.0%	-3.2%

Dartmouth Mall	96.0%	93.4%	95.0%	91.7%	1.0%	1.7%

Exton Square Mall	91.7%	81.8%	90.6%	79.3%	1.1%	2.5%

Francis Scott Key Mall	98.6%	97.7%	98.1%	96.8%	0.5%	0.9%

Gadsden Mall	92.6%	81.5%	93.0%	82.5%	-0.4%	-1.0%

The Gallery at Market East ⁽²⁾	61.3%	77.4%	60.5%	75.5%	0.8%	1.9%

Jacksonville Mall	99.1%	98.3%	98.4%	96.8%	0.7%	1.5%

Lehigh Valley Mall	96.1%	94.6%	95.2%	93.4%	0.9%	1.2%

Logan Valley Mall	95.0%	88.1%	94.8%	87.4%	0.2%	0.7%

Lycoming Mall	95.9%	92.3%	94.8%	90.3%	1.1%	2.0%

Magnolia Mall	98.3%	96.1%	95.8%	90.5%	2.5%	5.6%

Moorestown Mall	91.2%	80.2%	90.4%	78.4%	0.8%	1.8%

New River Valley Mall	97.6%	96.0%	95.5%	92.5%	2.1%	3.5%

Nittany Mall	94.0%	87.8%	94.3%	88.5%	-0.3%	-0.7%

North Hanover Mall	91.8%	80.4%	91.5%	79.7%	0.3%	0.7%

Orlando Fashion Square	92.0%	83.1%	88.8%	76.1%	3.2%	7.0%

Palmer Park Mall	96.3%	88.1%	95.3%	84.9%	1.0%	3.2%

Patrick Henry Mall	92.4%	85.3%	98.3%	96.6%	-5.9%	-11.3%

Phillipsburg Mall	88.0%	72.4%	91.5%	80.6%	-3.5%	-8.2%

Plymouth Meeting Mall	82.7%	73.7%	85.4%	77.8%	-2.7%	-4.1%

The Mall at Prince Georges	95.0%	89.5%	94.3%	88.0%	0.7%	1.5%

South Mall	89.5%	84.0%	89.6%	84.2%	-0.1%	-0.2%

Springfield Mall	92.8%	92.8%	93.8%	93.8%	-1.0%	-1.0%

Uniontown Mall	85.4%	74.2%	93.5%	83.5%	-8.1%	-9.3%

Valley Mall	93.7%	89.2%	95.9%	93.0%	-2.2%	-3.8%

Valley View Mall	96.3%	94.9%	96.1%	94.5%	0.2%	0.4%

Viewmont Mall	99.4%	98.5%	97.8%	94.4%	1.6%	4.1%

Voorhees Town Center	60.5%	59.9%	65.0%	64.5%	-4.5%	-4.6%

Washington Crown Center	89.3%	80.3%	85.1%	72.5%	4.2%	7.8%

Willow Grove Park ⁽³⁾	70.2%	92.8%	69.2%	92.8%	1.0%	0.0%

Wiregrass Commons Mall	87.5%	81.9%	86.9%	81.0%	0.6%	0.9%

Woodland Mall	95.1%	95.1%	90.4%	90.4%	4.7%	4.7%

Wyoming Valley Mall	96.5%	90.1%	96.7%	90.5%	-0.2%	-0.4%


Malls weighted average ⁽³⁾	90.3%	86.3%	90.2%	85.9%	0.1%	0.4%


Consolidated Properties	90.1%	85.8%	90.0%	85.4%	0.1%	0.4%
Unconsolidated Properties	95.3%	94.1%	94.9%	93.5%	0.4%	0.6%
Same Properties	90.3%	86.3%	90.2%	85.9%	0.1%	0.4%

⁽¹⁾	Occupancy for both periods presented includes all tenants irrespective of the terms of their agreement. Previously, occupancy was reported excluding tenants under agreements with initial terms of less than one year.

⁽²⁾	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% of the owned mall GLA as of June 30, 2011 and 2010.

⁽³⁾	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 June 30, 2011 and June 30, 2010, respectively.

Page 14

Pennsylvania Real Estate Investment Trust

Strip and Power Center Rent Per Square Foot and Occupancy Percentages


	June 30, 2011				June 30, 2010				Change
	Avg		Occupancy ⁽¹⁾		Avg		Occupancy ⁽¹⁾		Avg	Occupancy ⁽¹⁾
	Base Rent		Total	Non-Anchor	Base Rent		Total	Non-Anchor	Base Rent	Total	Non-Anchor

Christiana Center	$	20.16	96.0%	89.1%	$	19.96	98.8%	96.8%	1.0%	-2.8%	-7.7%

The Commons at Magnolia		15.33	87.3%	84.2%		13.05	83.7%	79.7%	17.5%	3.6%	4.5%

Metroplex Shopping Center		19.84	100.0%	100.0%		19.10	100.0%	100.0%	3.9%	0.0%	0.0%

The Court at Oxford Valley		15.27	91.7%	90.5%		15.60	100.0%	100.0%	-2.1%	-8.3%	-9.5%

Paxton Towne Centre		15.26	100.0%	100.0%		15.44	98.2%	97.3%	-1.2%	1.8%	2.7%

Red Rose Commons		13.14	100.0%	100.0%		13.75	82.5%	82.5%	-4.4%	17.5%	17.5%

Springfield Park		21.35	98.2%	94.9%		20.90	98.2%	94.9%	2.2%	0.0%	0.0%

Whitehall Mall		13.51	84.8%	67.7%		12.40	91.6%	82.3%	9.0%	-6.8%	-14.6%


Weighted Average	$	16.29	94.5%	91.9%	$	16.07	95.5%	93.4%	1.4%	-1.0%	-1.5%


Consolidated Properties	$	16.33	97.0%	94.8%	$	16.15	96.6%	94.1%	1.1%	0.4%	0.7%

Unconsolidated Properties	$	16.28	93.4%	90.9%	$	16.04	95.0%	93.1%	1.5%	-1.6%	-2.2%

Same Properties	$	16.29	94.5%	91.9%	$	16.07	95.5%	93.4%	1.4%	-1.0%	-1.5%

⁽¹⁾	Occupancy for both periods presented includes all tenants irrespective of the terms of their agreement. Previously, occupancy was reported excluding tenants under agreements with initial terms of less than one year.

Page 15

Pennsylvania Real Estate Investment Trust

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

(dollars in thousands)

	00000000000		00000000000	00000000000		00000000000	00000000000		00000000000		00000000000		00000000000		00000000000
	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		582,744	5		51,516	51		634,260	$	12,340	$	11,312		3.65%

Foot Locker, Inc.	62		326,377	9		29,542	71		355,919		8,150		7,697		2.48%

JCPenney Company, Inc.	24		2,369,736	6		824,327	30		3,194,063		7,526		7,526		2.43%

Limited Brands, Inc.	57		275,395	15		48,323	72		323,718		7,487		7,041		2.27%

American Eagle Outfitters, Inc.	40		218,381	2		8,840	42		227,221		6,842		6,534		2.11%

Zale Corporation	74		55,498	-		-	74		55,498		5,691		5,386		1.74%

Sears Holding Corporation	24		2,796,396	5		880,777	29		3,677,173		5,445		5,302		1.71%

Signet Jewelers Limited	38		58,490	-		-	38		58,490		4,426		4,271		1.38%

Bain Capital LLC ⁽⁴⁾	29		585,361	4		8,075	33		593,436		4,147		4,002		1.29%

Dick’s Sporting Goods, Inc.	8		371,675	1		50,484	9		422,159		4,687		3,967		1.28%

Luxottica Group S.p.A.	47		117,318	3		9,062	50		126,380		4,239		3,940		1.27%

Golden Gate Capital ⁽⁵⁾	15		133,715	4		31,799	19		165,514		4,094		3,697		1.19%

Abercrombie & Fitch Co.	19		128,443	-		-	19		128,443		3,872		3,490		1.13%

Genesco, Inc.	58		76,938	3		3,052	61		79,990		3,426		3,284		1.06%

Aeropostale, Inc.	33		115,299	3		10,619	36		125,918		3,350		3,123		1.01%

Commonwealth of Pennsylvania	2		229,244	-		-	2		229,244		3,085		3,085		0.99%

Barnes & Noble, Inc.	9		271,086	-		-	9		271,086		4,105		3,023		0.97%

Hallmark Cards, Inc.	32		129,143	7		30,277	39		159,420		2,956		2,784		0.90%

The Bon-Ton Stores, Inc.	13		1,008,613	1		41,344	14		1,049,957		2,729		2,729		0.88%

Pacific Sunwear, Inc.	26		97,685	3		10,611	29		108,296		2,836		2,676		0.86%


Total Top 20 Tenants	656		9,947,537	71		2,038,648	727		11,986,185	$	101,433	$	94,869		30.59%


Total Leases							3,094					$	310,199		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 18 Gymboree stores, nine Crazy 8 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 June 30, 2011

(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

Holdover	215		716,803		6.0%	$	15,091	$	14,675		5.4%	$	21.05
2011	317		686,498		5.7%		18,905		18,214		6.7%		27.54
2012	522		1,724,448		14.4%		40,772		37,758		13.9%		23.64
2013	375		1,200,724		10.0%		28,029		26,328		9.7%		23.34
2014	271		939,719		7.8%		22,853		20,774		7.7%		24.32
2015	251		1,229,730		10.2%		27,821		24,909		9.2%		22.62
2016	271		1,225,493		10.2%		33,667		30,074		11.1%		27.47
2017	191		876,640		7.3%		23,205		20,636		7.6%		26.47
2018	184		929,410		7.7%		25,173		22,886		8.4%		27.08
2019	140		609,468		5.1%		18,319		17,417		6.4%		30.06
2020	132		912,748		7.6%		20,059		18,868		7.0%		21.98
Thereafter	117		949,256		8.0%		20,352		18,722		6.9%		21.44

Total/Average	2,986		12,000,937		100.0%	$	294,245	$	271,262		100.0%	$	24.52


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

2012	5		609,198		5.4%	$	842	$	806		2.1%	$	1.38
2013	14		1,135,570		10.1%		4,593		4,593		11.8%		4.04
2014	15		1,551,546		13.9%		4,249		3,787		9.7%		2.74
2015	18		1,715,835		15.3%		5,115		5,115		13.1%		2.98
2016	20		1,895,436		16.9%		4,624		4,624		11.9%		2.44
2017	6		631,646		5.6%		3,148		2,733		7.0%		4.98
2018	6		777,965		6.9%		4,085		4,085		10.5%		5.25
2019	7		770,343		6.9%		2,014		2,014		5.2%		2.61
2020	3		277,729		2.5%		1,192		1,192		3.1%		4.29
Thereafter	14		1,836,725		16.5%		11,272		9,988		25.6%		6.14

Total/Average	108		11,201,993		100.0%	$	41,135	$	38,937		100.0%	$	3.67

⁽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 June 30, 2011


	Owned GLA
	Occupied						Vacant
	Anchor		Non-Anchor				Anchor		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		195,741		-		101,561		204,770		1,162,079
Capital City Mall		204,301		63,586		207,514		-		13,372		120,000		608,773
Chambersburg Mall		241,690		19,651		121,836		-		71,160		-		454,337
Cherry Hill Mall ⁽³⁾		138,000		204,015		421,985		-		57,462		478,885		1,300,347
Crossroads Mall		254,211		12,231		135,947		-		50,440		-		452,829
Cumberland Mall		264,348		212,538		140,834		-		51,497		273,230		942,447
Dartmouth Mall		208,460		142,274		158,774		-		21,432		140,000		670,940
Exton Square Mall		440,301		26,617		275,174		-		67,286		277,468		1,086,846
Francis Scott Key Mall		222,176		140,616		201,893		-		7,943		139,333		711,961
Gadsden Mall		300,960		65,746		98,523		-		37,359		-		502,588
The Gallery at Market East		350,115		73,975		240,208		328,390		91,737		-		1,084,425
Jacksonville Mall		242,115		98,693		143,677		-		4,224		-		488,709
Lehigh Valley Mall		212,000		171,800		371,257		-		30,982		371,986		1,158,025
Logan Valley Mall		454,387		43,943		243,076		-		38,872		-		780,278
Lycoming Mall		333,413		182,268		170,657		-		29,575		120,000		835,913
Magnolia Mall		343,118		86,608		167,381		-		10,262		-		607,369
Moorestown Mall		408,356		98,682		166,056		-		65,156		321,2002		1,059,450
New River Valley Mall		175,306		134,996		120,303		-		10,641		-		441,246
Nittany Mall		221,462		12,500		176,684		-		26,398		95,000		532,044
North Hanover Mall		206,792		21,047		98,758		-		29,166		-		355,763
Orlando Fashion Square		491,999		149,696		216,333		-		74,322		155,576		1,087,926
Palmer Park Mall		314,235		-		126,654		-		17,042		-		457,931
Patrick Henry Mall		279,619		16,741		235,498		-		43,581		140,000		715,439
Phillipsburg Mall		326,552		42,021		139,317		-		69,248		-		577,138
Plymouth Meeting Mall ⁽⁴⁾		253,584		164,842		194,528		-		128,235		214,635		955,824
The Mall at Prince Georges		479,619		119,073		273,925		-		46,048		-		918,665
South Mall		139,691		131,434		91,544		-		42,530		-		405,199
Springfield Mall		-		-		206,288		-		16,025		387,899		610,212
Uniontown Mall		391,096		49,888		155,824		30,282		71,495		-		698,585
Valley Mall		280,549		125,334		225,130		-		42,469		243,400		916,882
Valley View Mall		96,357		74,148		160,567		-		12,594		254,596		598,262
Viewmont Mall		386,262		82,893		154,352		-		3,687		120,000		747,194
Voorhees Town Center ⁽⁵⁾		4,404		67,478		108,367		-		117,613		420,838		718,700
Washington Crown Center		245,401		79,085		154,171		-		57,186		140,095		675,938
Willow Grove Park		225,000		37,260		284,852		206,834		24,937		413,121		1,192,004
Wiregrass Commons		94,686		10,345		162,486		-		38,278		332,152		637,947
Woodland Mall		-		120,959		292,318		-		21,363		725,187		1,159,827
Wyoming Valley Mall		592,110		90,851		196,772		-		31,567		-		911,300

Total Malls (38 properties)		10,333,942		3,322,574		7,235,204		565,506		1,674,745		6,089,371		29,221,342


Strip and Power Centers
Christiana Center		190,814		68,132		31,288		-		12,200		-		302,434
The Commons at Magnolia		20,631		28,618		41,867		-		13,216		126,200		230,532
Metroplex Shopping Center		67,185		362,593		47,683		-		-		300,729		778,190
The Court at Oxford Valley		59,620		323,336		36,154		-		37,793		247,623		704,526
Paxton Towne Centre		151,627		221,425		71,380		-		-		273,0582		717,490
Red Rose Commons		-		248,085		15,206		-		-		199,590		462,881
Springfield Park		83,539		20,500		22,443		-		2,329		145,669		274,480
Whitehall Mall		294,635		135,271		42,691		-		84,904		-		557,501

Total Strip and Power Centers (8 properties)		868,051		1,407,960		308,712		-		150,442		1,292,869		4,028,034


CONSOLIDATED PROPERTIES		10,485,014		3,468,949		6,802,194		565,506		1,653,154		5,728,744		28,703,561
UNCONSOLIDATED PROPERTIES		716,979		1,261,585		741,722		-		172,033		1,653,496		4,545,815
TOTAL PROPERTIES		11,201,993		4,730,534		7,543,916		565,506		1,825,187		7,382,240		33,249,376

⁽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 19,101 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 June 30, 2011


Properties	Ownership Interest	Date Acquired	Year Built/ Last Renovated	Anchors / Major Tenants	Lease Expiration

MALLS
Beaver Valley Mall Monaca, PA	100%	2002	1970/1991	Boscov’s jcpenney Macy’s Sears	9/30/18 9/30/17 (1) 8/15/16
Capital City Mall Camp Hill, PA	100%	2003	1974/2005	jcpenney Macy’s Sears	11/30/15 (1) 7/28/14
Chambersburg Mall Chambersburg, PA	100%	2003	1982	Bon-Ton Burlington Coat Factory jcpenney Sears	1/28/16 1/31/19 3/31/12 2/9/15
Cherry Hill Mall Cherry Hill, NJ	100%	2003	1961/2009	The Container Store Crate and Barrel jcpenney Macy’s Nordstrom	2/28/18 1/31/23 (1) (1) 2/28/25
Crossroads Mall ⁽²⁾Beckley, WV	100%	2003	1981	Belk jcpenney Sears	11/5/14 12/31/16 3/31/16
Cumberland Mall Vineland, NJ	100%	2005	1973/2003	Best Buy BJ’s Boscov’s Burlington Coat Factory Home Depot jcpenney	1/31/16 (1) (1) 4/30/19 1/31/19 11/30/13
Dartmouth Mall Dartmouth, MA	100%	1997	1971/2000	jcpenney Macy’s Sears	7/31/14 (1) 4/12/16
Exton Square Mall ⁽²⁾ Exton, PA	100%	2003	1973/2000	Boscov’s jcpenney K-Mart Macy’s Sears	10/31/19 5/31/20 (1) (1) 10/6/19
Francis Scott Key Mall Frederick, MD	100%	2003	1978/1991	Barnes & Noble jcpenney Macy’s Sears Value City Furniture	4/30/17 9/30/16 (1) 7/31/13 1/31/19
Gadsden Mall Gadsden, AL	100%	2005	1974/1990	Belk jcpenney Sears	7/31/14 1/31/29 3/5/14
The Gallery at Market East ⁽²⁾Philadelphia, PA	100%	2003	1977/1990	Burlington Coat Factory Commonwealth of Pennsylvania	2/28/32 6/30/29
Jacksonville Mall Jacksonville, NC	100%	2003	1981/2008	Barnes & Noble Belk jcpenney Sears	5/31/18 8/21/16 8/31/15 8/4/16
Lehigh Valley Mall ⁽³⁾ Allentown, PA	50%	1973	1977/2007	Barnes & Noble Boscov’s jcpenney Macy’s	10/31/17 (1) (1) 7/31/12
Logan Valley Mall Altoona, PA	100%	2003	1960/1997	jcpenney Macy’s Sears	1/31/17 1/31/15 10/31/16
Lycoming Mall Pennsdale, PA	100%	2003	1978/2007	Best Buy Bon-Ton Borders Burlington Coat Factory Dick’s Sporting Goods jcpenney Macy’s Sears	1/31/17 7/27/16 1/31/17 1/31/19 1/31/17 10/31/15 (1) 7/31/13
Magnolia Mall Florence, SC	100%	1997	1979/2007	Barnes & Noble Belk Best Buy Dick’s Sporting Goods jcpenney Sears	9/30/17 1/31/16 1/31/13 1/31/18 3/31/17 10/16/14
Moorestown Mall Moorestown, NJ	100%	2003	1963/2008	Boscov’s Lord & Taylor Macy’s Sears	10/31/15 (1) (1) 10/5/22
New River Valley Mall Christiansburg, VA	100%	2003	1988/2007	Belk Dick’s Sporting Goods jcpenney Regal Cinemas Sears	4/19/14 1/31/17 3/31/13 4/30/22 8/2/13

Page 19

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2011 (continued)


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

Page 20

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2011 (continued)


Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration

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

⁽¹⁾	Space is not owned by PREIT.

⁽²⁾	Property is subject to a ground lease.

⁽³⁾	Property is managed by a third party.

Page 21

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method⁽¹⁾

(in thousands, except per share amounts)


	June 30, 2011									December 31, 2010
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,465,976		$	210,854		$	,676,830		$	3,448,900		$	210,505		$	3,659,405
Construction in progress		117,908			810			118,718			121,547			753			122,300
Land held for development		15,363			-			15,363			17,021			-			17,021

Total investments in real estate		3,599,247			211,664			3,810,911			3,587,468			211,258			3,798,726
Accumulated depreciation		(792,682	)		(70,273	)		(862,955	)		(729,086	)		(66,699	)		(795,785	)

Net investments in real estate		2,806,565			141,391			2,947,956			2,858,382			144,559			3,002,941

Investments in partnerships, at equity		25,784			(25,784	)		-			30,959			(30,959	)		-
Other assets:
Cash and cash equivalents		24,163			5,225			29,388			42,327			4,780			47,107
Rent and other receivables ⁽²⁾		29,263			6,407			35,670			40,732			6,390			47,122
Intangible assets, net		12,636			230			12,866			15,787			288			16,075
Deferred costs and other assets, net		87,081			8,953			96,034			91,930			8,304			100,234

Total other assets		178,927			(4,969	)		173,958			221,735			(11,197	)		210,538

Total assets	$	2,985,492		$	136,422		$	3,121,914		$	3,080,117		$	133,362		$	3,213,479


LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $993 and $1,569 as of June 30, 2011 and December 31, 2010, respectively)	$	1,733,356		$	190,866		$	1,924,222		$	1,744,248		$	175,693		$	1,919,941
Exchangeable notes (net of discount of $1,842 and $2,809 as of June 30, 2011 and December 31, 2010, respectively)		135,058			-			135,058			134,091			-			134,091
Revolving Facility		70,000			-			70,000			-			-			-
Term Loans		240,000			-			240,000			347,200			-			347,200
Tenants’ deposits and deferred rent		15,016			3,852			18,868			16,583			3,899			20,482
Distributions in excess of partnership investments		56,248			(56,248	)		-			44,614			(44,614	)		-
Fair value of derivative instruments		25,456			-			25,456			27,233			-			27,233
Other liabilities		52,309			(2,048	)		50,261			61,618			(1,616	)		60,002

Total liabilities		2,327,443			136,422			2,463,865			2,375,587			133,362			2,508,949


Equity:
Total equity		658,049			-			658,049			704,530			-			704,530

Total liabilities and equity	$	2,985,492		$	136,422		$	3,121,914		$	3,080,117		$	133,362		$	3,213,479

⁽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 $28.1 million ($25.6 million wholly owned, $2.5 million partnership) as of June 30, 2011, and $27.8 million ($25.2 million wholly owned, $2.6 million partnership) as of December 31, 2010.

Page 22

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Property Type⁽¹⁾

(in thousands, except per share amounts)


	June 30, 2011												December 31, 2010
	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	$	3,450,112		$	220,477		$	21,604		$	3,692,193		$	3,433,844		$	219,321		$	23,261		$	3,676,426
Construction in progress		63,126			-			55,592			118,718			67,123			-			55,177			122,300

Total investments in real estate		3,513,238			220,477			77,196			3,810,911			3,500,967			219,321			78,438			3,798,726
Accumulated depreciation		(787,602	)		(73,956	)		(1,397	)		(862,955	)		(724,708	)		(69,785	)		(1,292	)		(795,785	)

Net investments in real estate		2,725,636			146,521			75,799			2,947,956			2,776,259			149,536			77,146			3,002,941

Other assets:
Cash and cash equivalents		18,775			1,595			9,018			29,388			21,119			1,931			24,057			47,107
Rent and other receivables ⁽²⁾		27,590			6,737			1,343			35,670			37,768			7,008			2,346			47,122
Intangible assets, net		5,568			-			7,298			12,866			8,725			-			7,350			16,075
Deferred costs and other assets, net		64,043			8,959			23,032			96,034			72,165			7,960			20,109			100,234

Total other assets		115,976			17,291			40,691			173,958			139,777			16,899			53,862			210,538

Total assets	$	2,841,612		$	163,812		$	116,490		$	3,121,914		$	2,916,036		$	166,435		$	131,008		$	3,213,479


LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $993 and $1,569 as of June 30, 2011 and December 31, 2010, respectively)	$	1,731,883		$	187,421		$	4,918		$	1,924,222		$	1,743,470		$	171,553		$	4,918		$	1,919,941
Exchangeable notes (net of discount of $1,842 and $2,809 as of June 30, 2011 and December 31, 2010, respectively)		-			-			135,058			135,058			-			-			134,091			134,091
Revolving Facility		-			-			70,000			70,000			-			-			-			-
Term Loans		-			-			240,000			240,000			-			-			347,200			347,200
Tenants’ deposits and deferred rent		16,808			1,916			144			18,868			18,205			2,128			149			20,482
Fair value of derivative instruments		-			-			25,456			25,456			-			-			27,233			27,233
Other liabilities		30,637			(3,025	)		22,649			50,261			32,593			(2,277	)		29,686			60,002

Total liabilities		1,779,328			186,312			498,225			2,463,865			1,794,268			171,404			543,277			2,508,949


Equity:
Total equity		1,062,284			(22,500	)		(381,735	)		658,049			1,121,768			(4,969	)		(412,269	)		704,530

Total liabilities and equity	$	2,841,612		$	163,812		$	116,490		$	3,121,914		$	2,916,036		$	166,435		$	131,008		$	3,213,479

Page 23

Pennsylvania Real Estate Investment Trust

Investment in Real Estate⁽¹⁾

(in thousands)


	June 30, 2011								December 31, 2010
	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	$	70,034	$	-	$	20,033	$	50,001	$	69,663	$	-	$	18,536	$	51,127
Capital City Mall		96,365		-		23,435		72,930		95,920		-		21,547		74,373
Chambersburg Mall		38,315		-		8,327		29,988		38,529		-		7,803		30,726
Cherry Hill Mall		450,168		43		87,587		362,624		448,513		34		76,173		372,374
Crossroads Mall		38,204		190		9,526		28,868		36,750		1,057		8,903		28,904
Cumberland Mall		63,338		130		10,013		53,455		63,340		153		9,051		54,442
Dartmouth Mall		62,641		-		27,561		35,080		62,543		-		26,604		35,939
Exton Square Mall		148,448		72		28,094		120,426		147,556		64		26,367		121,253
Francis Scott Key Mall		77,515		157		17,877		59,795		76,482		813		16,587		60,708
Gadsden Mall		61,321		-		10,890		50,431		61,174		-		9,735		51,439
The Gallery at Market East		169,916		1,994		23,589		148,321		169,696		2,014		19,913		151,797
Jacksonville Mall		79,728		-		17,389		62,339		79,247		-		16,096		63,151
Logan Valley Mall		96,026		-		23,645		72,381		96,000		-		22,521		73,479
Lycoming Mall		76,819		-		17,141		59,678		76,814		-		15,817		60,997
Magnolia Mall		87,649		562		25,459		62,752		87,434		27		23,814		63,647
Moorestown Mall		93,027		4		26,682		66,349		92,560		87		25,201		67,446
New River Valley Mall		57,954		-		16,789		41,165		57,892		-		15,238		42,654
Nittany Mall		43,628		-		9,699		33,929		43,458		-		9,073		34,385
North Hanover Mall		38,303		17,100		8,643		46,760		38,219		17,100		8,004		47,315
Orlando Fashion Square ⁽²⁾		42,476		-		5,705		36,771		40,426		-		4,448		35,978
Palmer Park Mall		34,528		-		12,511		22,017		34,465		-		12,103		22,362
Patrick Henry Mall		141,744		-		35,439		106,305		141,312		-		32,338		108,974
Phillipsburg Mall		54,922		7		11,755		43,174		54,088		606		10,930		43,764
Plymouth Meeting Mall		160,002		24		31,391		128,635		159,802		426		28,256		131,972
The Mall at Prince Georges		100,744		-		34,566		66,178		100,654		-		32,782		67,872
South Mall		33,761		-		6,513		27,248		33,728		-		6,107		27,621
Uniontown Mall		39,979		-		10,450		29,529		39,955		-		9,750		30,205
Valley Mall		92,135		-		22,233		69,902		92,081		-		21,252		70,829
Valley View Mall		67,913		-		13,825		54,088		67,602		-		12,977		54,625
Viewmont Mall		90,387		-		19,064		71,323		90,359		-		17,600		72,759
Voorhees Town Center		69,207		17,711		15,604		71,314		66,001		20,774		13,950		72,825
Washington Crown Center		40,259		-		13,206		27,053		40,249		-		12,826		27,423
Willow Grove Park		189,117		25,054		48,548		165,623		189,032		23,943		45,471		167,504
Wiregrass Commons Mall		52,935		-		10,029		42,906		52,072		-		9,159		42,913
Woodland Mall		185,587		-		31,071		154,516		185,530		-		28,070		157,460
Wyoming Valley Mall		108,195		-		24,175		84,020		107,913		-		22,251		85,662

Total Consolidated Malls		3,353,290		63,048		758,464		2,657,874		3,337,059		67,098		697,253		2,706,904

Unconsolidated Malls
Lehigh Valley Mall		41,409		73		18,164		23,318		41,516		21		17,338		24,199
Springfield Mall		55,413		5		10,974		44,444		55,269		4		10,117		45,156

Total Unconsolidated Malls		96,822		78		29,138		67,762		96,785		25		27,455		69,355


TOTAL MALLS	$	3,450,112	$	63,126	$	787,602	$	2,725,636	$	3,433,844	$	67,123	$	724,708	$	2,776,259

⁽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)


	June 30, 2011								December 31, 2010
	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	$	42,648	$	-	$	12,913	$	29,735	$	42,020	$	-	$	12,288	$	29,732
The Commons at Magnolia		12,674		-		3,587		9,087		12,674		-		3,347		9,327
Paxton Towne Centre		57,363		-		17,718		39,645		57,147		-		16,198		40,949

Total Consolidated Strip and Power Centers		112,685		-		34,218		78,467		111,841		-		31,833		80,008

Unconsolidated Strip and Power Centers
Metroplex Shopping Center		42,680		-		16,442		26,238		42,180		-		15,315		26,865
The Court at Oxford Valley		27,883		-		8,932		18,951		27,883		-		8,600		19,283
Red Rose Commons		13,178		-		4,111		9,067		13,178		-		3,936		9,242
Whitehall Mall		16,766		-		8,650		8,116		16,954		-		8,570		8,384
Springfield Park		7,285		-		1,603		5,682		7,285		-		1,531		5,754

Total Unconsolidated Strip and Power Centers		107,792		-		39,738		68,054		107,480		-		37,952		69,528


TOTAL STRIP AND POWER CENTERS	$	220,477	$	-	$	73,956	$	146,521	$	219,321	$	-	$	69,785	$	149,536


Consolidated Properties Under Development
Springhills ⁽²⁾	$	-	$	21,961	$	-	$	21,961	$	-	$	21,984	$	-	$	21,984
White Clay Point ⁽³⁾		-		32,899		-		32,899		-		32,465		-		32,465

Total Consolidated Properties Under Development		-		54,860		-		54,860		-		54,449		-		54,449

Unconsolidated Properties Under Development
Pavilion at Market East		6,240		732		1,397		5,575		6,240		728		1,292		5,676

Total Unconsolidated Properties Under Development		6,240		732		1,397		5,575		6,240		728		1,292		5,676

Other Properties
Land held for development-consolidated		15,364		-		-		15,364		17,021		-		-		17,021

Total Other Properties		15,364		-		-		15,364		17,021		-		-		17,021

TOTAL DEVELOPMENT AND OTHER	$	21,604	$	55,592	$	1,397	$	75,799	$	23,261	$	55,177	$	1,292	$	77,146


TOTAL INVESTMENT IN REAL ESTATE	$	3,692,193	$	118,718	$	862,955	$	2,947,956	$	3,676,426	$	122,300	$	795,785	$	3,002,941


CONSOLIDATED PROPERTIES	$	3,481,339	$	117,908	$	792,682	$	2,806,565	$	3,465,921	$	121,547	$	729,086	$	2,858,382

UNCONSOLIDATED PROPERTIES		210,854		810		70,273		141,391		210,505		753		66,699		144,559


TOTAL INVESTMENT IN REAL ESTATE	$	3,692,193	$	118,718	$	862,955	$	2,947,956	$	3,676,426	$	122,300	$	795,785	$	3,002,941

⁽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 June 30, 2011								Six Months Ended June 30, 2011
	Consolidated			Unconsolidated		Total			Consolidated		Unconsolidated		Total

Redevelopment projects with incremental GLA and/or anchor replacement ⁽¹⁾	$	(906	)	$	64	$	(842	)	$	2,586	$	67	$	2,653
New development projects		360			1		361			434		4		438
Tenant allowances		4,612			-		4,612			5,841		-		5,841
Recurring capital expenditures:
CAM expenditures		3,059			110		3,169			3,209		143		3,352
Non-CAM expenditures		1,369			-		1,369			1,549		-		1,549

Total recurring capital expenditures		4,428			110		4,538			4,758		143		4,901

Total	$	8,494		$	175	$	8,669		$	13,619	$	214	$	13,833

⁽¹⁾	Net of any tenant reimbursements, parcel sales, tax credits or other incentives.

Page 26

Pennsylvania Real Estate Investment Trust

Debt Analysis as of June 30, 2011

(in thousands)


Outstanding Debt
	Fixed Rate⁽¹⁾		% of Total Indebtedness	Variable Rate⁽⁵⁾		% of Total Indebtedness	Total		% of Total Indebtedness
Consolidated mortgage loans payable ⁽²⁾	$	1,680,388	70.9%	$	52,968	2.2%	$	1,733,356	73.1%
Unconsolidated mortgage loans payable		190,866	8.1%		-	0.0%		190,866	8.1%
Exchangeable notes ⁽³⁾		135,058	5.7%		-	0.0%		135,058	5.7%
2010 Credit Facility ⁽⁴⁾		300,000	12.7%		10,000	0.4%		310,000	13.1%

TOTAL OUTSTANDING DEBT	$	2,306,312	97.4%	$	62,968	2.6%	$	2,369,280	100.0%

AVERAGE STATED INTEREST RATE		5.70%			2.47%			5.61%

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

⁽²⁾Includes debt premium of $993

⁽³⁾ Net of debt discount of $1,842

⁽⁴⁾ Includes $310.0 million of the 2010 Credit Facility. We have entered into interest rate swap agreements to effectively fix $300.0 million of the underlying LIBOR associated with the 2010 Credit Facility at a weighted average rate of 1.77% (excluding the spread on the related debt) for the three-year initial term which expires March 10, 2013. Of that notional amount, $200.0 million of this $300.0 million is also covered by a forward starting swap that becomes effective on April 2, 2012 at a rate of 2.96% until March 2013, excluding the spread on the related debt. Additionally, $15.6 million of which is subject to a LIBOR cap with a strike price of 2.50%. The LIBOR cap will mature in April 2012.

⁽⁵⁾ The variable rate amount includes $15.6 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
					2010 Credit Facility
		Mortgage Debt ⁽¹⁾			Revolving Facility			Term Loans			Exchangeable Notes		Exchangeable Notes Discount			TOTAL
Beginning Balance	3/31/2011	$	1,913,602		$	-		$	347,200		$	136,900	$	(2,329	)	$	2,395,373
Term Loan repayment			-			-			(7,200	)		-		-			(7,200	)
Red Rose Commons refinancing			2,848			-			-			-		-			2,848
The Court at Oxford Valley refinancing			13,997			-			-			-		-			13,997
2010 Credit Facility Amendment						100,000			(100,000	)							-
Revolving Facility repayment			-			(30,000	)		-			-		-			(30,000	)
Mortgage loan amortization ⁽²⁾			(6,224	)		-			-			-		-			(6,224	)
Exchangeable notes discount amortization			-			-			-			-		487			487

Ending Balance	6/30/2011	$	1,924,222		$	70,000		$	240,000		$	136,900	$	(1,842	)	$	2,369,280

Weighted Average Balance		$	1,913,451		$	1,099		$	342,460		$	136,900	$	(2,168	)	$	2,391,743

⁽¹⁾Includes debt premium.

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


Debt Maturities ⁽¹⁾
								2010 Credit Facility
Year		Scheduled Amortization		Debt Premium Amortization		Mortgage Balance at Maturity		Revolving Facility		Term Loans		Exchangeable Notes		Exchangeable Notes Discount Amortization			Total Debt
	2011	$	11,974	$	577	$	87,703	$	-	$	-	$	-	$	(993	)	$	99,261
	2012		21,768		416		407,603		-		-		136,900		(849	)		565,838
	2013		16,375		-		430,772		-		-		-		-			447,147
	2014		14,861		-		99,203		70,000		240,000		-		-			424,064
	2015		13,918		-		305,896		-		-		-		-			319,814
	2016		3,927		-		219,480		-		-		-		-			223,407
	2017		3,199		-		150,000		-		-		-		-			153,199
	Thereafter		8,565		-		127,985		-		-		-		-			136,550

		$	94,587	$	993	$	1,828,642	$	70,000	$	240,000	$	136,900	$	(1,842	)	$	2,369,280

⁽¹⁾ The weighted average period to mortgage maturity is 3.48 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	$	87,886		6.06%	$	87,886		6.06%
	2012		416,391		5.63%		416,391		5.28%
	2013		436,337		5.48%		436,337		5.48%
	2014		102,953		7.28%		102,953		7.28%
	2015		337,517		5.69%		337,517		5.69%
	2016		238,183		5.55%		238,183		5.55%
	Thereafter		303,962		5.65%		303,962		5.65%

	Total	$	1,923,229		5.71%	$	1,923,229		5.63%

(1) Excludes amortization of debt issuance costs.

Page 27

Pennsylvania Real Estate Investment Trust

Debt Schedule as of June 30, 2011

(in thousands)


		Proportionate Share⁽¹⁾							Interest Rate		Marked to Market Interest Rate (GAAP)		Annual Debt Service
	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
Paxton Towne Centre ^{(2) (8)}	Bank	$	54,000	$	-		$	54,000		5.84%		5.84%	$	3,152	$	54,000		July 2011
Metroplex Shopping Center	CMBS		28,968		-			28,968		7.25%		7.25%		2,681		28,785		Nov 2011
Capital City Mall	CMBS		48,403		539			48,942		7.61%		5.50%		4,603		47,898		Feb 2012
Beaver Valley Mall	CMBS		42,918		-			42,918		7.36%		7.36%		3,972		42,266		Apr 2012
Pavilion East Associates ⁽²⁾	Bank		3,837		-			3,837		6.15%		6.15%		240		3,708		Aug 2012
Cherry Hill Mall	Life Insurance Co		182,363		-			182,363		5.42%		5.42%		13,510		177,689		Oct 2012
Cherry Hill Mall Supplemental Loan	Life Insurance Co		54,005		-			54,005		5.51%		5.51%		3,030		53,003		Oct 2012
Cumberland Mall Loan #1	CMBS		39,865		454			40,319		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		60,496		-			60,496		4.95%		4.95%		4,484		57,594		June 2013
Moorestown Mall	CMBS		55,526		-			55,526		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		68,465		-			68,465		7.50%		7.50%		5,873		66,733		Jan 2014
Lycoming Mall	Bank		34,488		-			34,488		6.84%		6.84%		3,001		32,470		Jul 2014
Springfield East ^{(2) (5)}	Bank		2,251		-			2,251		5.39%		5.39%		92		2,061		Mar 2015
Springfield Park ^{(2) (5)}	Bank		2,643		-			2,643		5.39%		5.39%		108		2,419		Mar 2015
Magnolia Mall	CMBS		60,134		-			60,134		5.33%		5.33%		4,413		54,842		July 2015
Patrick Henry Mall	Life Insurance Co		92,383		-			92,383		6.34%		6.34%		7,743		83,210		Oct 2015
Springfield Mall ⁽²⁾	Bank		33,248		-			33,248		4.77%		4.77%		2,118		30,740		Nov 2015
Willow Grove Park	Life Insurance Co		146,858		-			146,858		5.65%		5.65%		11,083		132,624		Dec 2015
Valley Mall	CMBS		86,052		-			86,052		5.49%		5.49%		5,014		78,996		Mar 2016
Woodland Mall	CMBS		152,131		-			152,131		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		5,772		-			5,772		7.00%		7.00%		574		4,145		Nov 2018
Cumberland Mall Loan #2	Bank		2,378		-			2,378		5.00%		5.00%		390		-		Dec 2018
Lehigh Valley Mall	Life Insurance Co		69,197		-			69,197		5.88%		5.88%		4,972		58,519		July 2020
Valley View Mall	CMBS		31,665		-			31,665		5.95%		5.95%		2,290		27,161		July 2020
Red Rose Commons	CMBS		14,950		-			14,950		5.14%		5.14%		978		12,379		July 2021
The Court at Oxford Valley	CMBS		30,000		-			30,000		5.56%		5.56%		1,668		25,782		July 2021


Total Fixed Rate Mortgage Loans			1,870,261		993			1,871,254		5.81%		5.73%		130,550		1,776,418


Variable Rate Mortgage Loans
One Cherry Hill Plaza ⁽⁶⁾	Bank		4,918		-			4,918		1.49%		1.49%		73		4,918		Aug 2011
Christiana Center⁽⁷⁾	Bank		45,000		-			45,000		2.05%		2.05%		3,646		44,257		June 2012
New River Valley Mall ⁽⁴⁾	Bank		3,050		-			3,050		4.75%		4.75%		145		3,050		Jan 2013


Total Variable Rate Mortgage Loans			52,968		-			52,968		2.15%		2.15%		3,864		52,225


Total Mortgage Loans		$	1,923,229	$	993		$	1,924,222		5.71%		5.63%	$	134,414	$	1,828,643


CONSOLIDATED MORTGAGE LOANS		$	1,732,363	$	993		$	1,733,356		5.70%		5.61%	$	120,983	$	1,660,105
UNCONSOLIDATED MORTGAGE LOANS			190,866		-			190,866		5.81%		5.81%		13,431		168,538
EXCHANGEABLE NOTES ⁽⁹⁾			136,900		(1,842	)		135,058		4.00%		5.84%		5,476		136,900		June 2012
2010 CREDIT FACILITY - FIXED RATE ^{(10) (11) (12)}			300,000		-			300,000		5.78%		5.78%		17,327		300,000		Mar 2014
2010 CREDIT FACILITY - VARIABLE RATE ^(10) (11)			10,000		-			10,000		4.19%		4.19%		419		10,000		Mar 2014


Total		$	2,370,129	$	(849	)	$	2,369,280		5.61%		5.66%	$	157,636	$	2,275,543


AMORTIZATION OF DEFERRED FINANCING FEES			-		-			-		-		0.41%		-		-


EFFECTIVE INTEREST RATE		$	2,370,129	$	(849	)	$	2,369,280		5.61%		6.07%	$	157,636	$	2,275,543

⁽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 had 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 of August 2010 to August 2011.

⁽⁷⁾ The mortgage loan has two one year extension options. The first option was exercised to extend the maturity date to June 2012.

⁽⁸⁾The mortgage loan has two one year extension options. The first option was exercised to extend the maturity date to July 2012.

⁽⁹⁾ The marked to market interest rate includes the effect of deferred financing fee amortization and debt discount amortization.

⁽¹⁰⁾ Secured by first mortgage liens on 20 properties. See page 29 for property detail.

⁽¹¹⁾ The 2010 Credit Facility consists of the 2010 Term Loan, with a balance of $240,000 and the Revolving Facility, with a balance of $70,000. The total available to borrow against the Revolving Facility is $179,439.

⁽¹²⁾ Includes $310.0 million of the 2010 Credit Facility. We have entered into interest rate swap agreements to effectively fix $300.0 million of the underlying LIBOR associated with the 2010 Credit Facility at a weighted average rate of 1.77% (excluding the spread on the related debt) for the three-year initial term which expires March 10, 2013. Of that notional amount, $200.0 million of this $300.0 million is also covered by a forward starting swap that becomes effective on April 2, 2012 at a rate of 2.96% until March 2013, excluding the spread on the related debt. Additionally, $15.6 million of which is subject to a LIBOR cap with a strike price of 2.50%. The LIBOR cap will mature in April 2012.

Page 28

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios⁽¹⁾


	June 30, 2011

Consolidated Liabilities to Gross Asset Value		67.55%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 70%

EBITDA to Interest Expense		1.82
EBITDA may not be less than 1.60 to 1.00

Adjusted EBITDA to Fixed Charges		1.53
Adjusted EBITDA may not be less than 1.35 to 1.00

Corporate Debt Yield		10.84%
The ratio of EBITDA to total indebtedness may not be less than 9.50%.

Facility Debt Yield		17.08%
The ratio of NOI for Collateral Properties to Aggregate Outstanding Principal Amount⁽²⁾


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

⁽¹⁾ The amended, restated and consolidated senior secured credit agreement dated as of March 11, 2010, as amended on June 29, 2011 (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, 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 Reports on Form 8-K dated March 11, 2010 and June 29, 2011. 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⁾ The Maximum Loan Availability is based on a Facility Debt Yield equal to or greater than 9.75%.

Page 29

Pennsylvania Real Estate Investment Trust

Shareholder Information


Ten Largest Institutional Shareholders:	Common Shares Held ⁽¹⁾
The Vanguard Group, Inc.		6,150,485
BlackRock Fund Advisors		4,468,151
Cohen & Steers Capital Management, Inc.		2,674,901
Dreman Value Management LLC		2,498,533
Deutsche Investment Management Americas, Inc.		1,924,725
State Street Global Advisors		1,859,365
Brookfield Investment Management, Inc.		1,831,294
Northern Trust Global Investments Ltd.		1,170,493
Pacific Heights Asset Management LLC		1,000,000
JPMorgan Asset Management		889,836

*TOTAL of Ten Largest Institutional:*		24,467,783
*TOTAL of all Institutional Holders:*		40,793,171
*Ten Largest as % of Total Institutional:*		60.0%

⁽¹⁾	Based on 13F and 13G filings as of June 30, 2011 or most recent filings.




Breakdown of Share & Unit Ownership: Shares Held	Most Recent		% of Outstanding		December 31, 2010
Institutional⁽¹⁾		40,793,171		70.3%		38,639,075
Retail⁽²⁾		12,157,388		21.0%		13,992,951
Insiders⁽³⁾		5,064,204		8.7%		5,133,095

*TOTAL*		58,014,763		100.0%		57,765,121

⁽¹⁾ Based on 13F and 13G filings as of June 30, 2011 or most recent filings.

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

⁽³⁾Insider holdings as of March 31, 2011 (Shares and OP Units only). See proxy statement dated April 27, 2011 for more details.

Page 30

Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

Th National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations (“FFO”), which is a non-GAAP measure commonly used by REITs, 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. Similarly, FFO per diluted share and OP Unit is a measure that is useful because it reflects the dilutive impact of outstanding convertible securities.

The Company uses FFO and FFO per diluted share and OP Unit in measuring its performance against peers and as one of the performance measures for determining incentive compensation amounts earned under certain of our performance-based executive compensation programs. The Company computes FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than the Company.

FFO does not include gains 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 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), including lease termination revenue, minus 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, 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.

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