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

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Exhibit 99.1

PRELIMINARY July 30 5PM

Pennsylvania Real Estate Investment Trust^®

LOGO

Supplemental Financial and Operating Information

Quarter Ended June 30, 2012

www.preit.com

NYSE: PEI

NYSE: PEIPRA

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

June 30, 2012

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, 2012 and June 30, 2011			4
Statement of Operations-Proportionate Consolidation Method-Six Months Ended June 30, 2012 and June 30, 2011			5
Net Operating Income-Quarters Ended June 30, 2012 and June 30, 2011			6
Net Operating Income-Six Months Ended June 30, 2012 and June 30, 2011			7
Computation of Earnings Per Share			8
Funds From Operations and Funds Available for Distribution-Quarters Ended June 30, 2012 and June 30, 2011			9
Funds From Operations and Funds Available for Distribution-Six Months Ended June 30, 2012 and June 30, 2011			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, achievements or results, 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 interests in 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 conditions and their effect on employment, consumer confidence and spending and the corresponding effects on tenant business, performance, prospects, solvency and leasing decisions on our cash flows; 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 and in light of the relatively high number of leases that have expired or are expiring by the end of 2013. 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, as amended, for the year ended December 31, 2011. 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, 2012, 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 33.1 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

Research Coverage


Company	Analyst	Phone Number
Bank of America/Merrill Lynch	Craig Schmidt	(646) 855-3640

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
	Emmanuel Korchman	(212) 816-1382

Discern	David Wiggington	(646) 862-4177

Green Street Advisors	Cedrik Lachance	(949) 640-8780
	Daniel J. Busch	(949) 640-8780

JP Morgan	Michael W. Mueller	(212) 622-6689
	Molly McCartin	(212) 622-6615

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

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

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

July 20, 2012 - PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.16 per common share and $0.515625 per share dividend for preferred shares.

May 16, 2012 - PREIT announced the Board of Trustees of the Company increased the quarterly cash dividend to $0.16 per common share and declares initial dividend for preferred shares.

Acquisitions, dispositions, development and redevelopment activities:

July 12, 2012 - PREIT announced the opening of Grand Lux Cafe at Cherry Hill Mall and other new destinations to dining strategy.

Financing activities:

June 1, 2012 - PREIT redeemed its Exchangeable Notes at maturity.

April 20, 2012 - PREIT announced the closing of its preferred share offering.

April 13, 2012 - PREIT announced the pricing of its preferred share offering.

April 12, 2012 - PREIT announced commencement of preferred share offering.

Other activities:

July 10, 2012 - PREIT scheduled its Second Quarter 2012 earnings call for Tuesday, July 31, 2012.

June 11, 2012 - PREIT announced it would present at the REITWeek 2012 NAREIT Investor Forum in New York City on Wednesday, June 13, 2012.

June 7, 2012 - PREIT announced that Joseph F. Coradino became Chief Executive Officer of PREIT.

May 1, 2012 - PREIT updated its 2012 guidance.

April 24, 2012 - PREIT reported its First Quarter 2012 results.

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

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands, except per share amounts)


	Quarter Ended June 30,						Year Ended December 31,
	2012			2011			2011			2010
TRADING INFORMATION
Common Shares
High Price per share	$	15.69		$	17.34		$	17.34		$	17.35
Low Price per share	$	11.81		$	13.64		$	6.50		$	8.35
Closing Share Price (at the end of period)	$	14.98		$	15.70		$	10.44		$	14.53
Preferred Shares
High Price per share	$	25.84		$	—		$	—		$	—
Low Price per share	$	24.98		$	—		$	—		$	—
Closing Share Price (at the end of period)	$	25.75		$	—		$	—		$	—

MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding		56,001			55,686			55,677			55,436
OP Units Outstanding		2,309			2,329			2,329			2,329

Total Shares and OP Units Outstanding		58,310			58,015			58,006			57,765


Equity Market Capitalization—Shares and OP Units	$	873,485		$	910,832		$	605,581		$	839,327
Preferred Shares, Nominal Value		115,000			—			—			—

Total Equity Market Capitalization	$	988,485		$	910,832		$	605,581		$	839,327

DEBT CAPITALIZATION⁽¹⁾
Secured Debt Balance⁽²⁾⁽³⁾	$	2,249,912		$	2,233,228		$	2,230,645		$	2,265,572
Unsecured Debt Balance⁽⁴⁾		—			136,900			136,900			136,900

Debt Capitalization		2,249,912			2,370,128			2,367,545			2,402,472

TOTAL MARKET CAPITALIZATION	$	3,238,397		$	3,280,960		$	2,973,126		$	3,241,799

*Equity Capitalization/Total Market Capitalization*		30.5	%		27.8	%		20.4	%		25.9	%
*Debt Capitalization/Total Market Capitalization*		69.5	%		72.2	%		79.6	%		74.1	%
*Unsecured Debt Balance/Total Debt*		0.0	%		5.8	%		5.8	%		5.7	%

DISTRIBUTIONS PER COMMON SHARE

Ordinary Dividends		⁽⁵⁾		$	0.15		$	0.37		$	0.60
Capital Gain Distributions⁽⁶⁾		⁽⁵⁾			—			0.01			—
Non-Taxable Distributions					—			0.22			—

Distributions per common share	$	0.16		$	0.15		$	0.60		$	0.60

Annualized Dividend Yield⁽⁷⁾		4.3	%		3.8	%		5.7	%		4.1	%

CAPITAL RESOURCES

Cash and Cash Equivalents	$	20,942		$	29,388		$	27,481		$	47,107

Revolving Facility		250,000			250,000			250,000			150,000
Amount Outstanding		(65,000	)		(70,000	)		(95,000	)		—
Letters of Credit		—			(561	)		—			(1,534	)

Available Revolving Facility⁽⁸⁾		185,000			179,439			155,000			148,466

TOTAL	$	205,942		$	208,827		$	182,481		$	195,573

Shelf Registration	$	885,000		$	831,812		$	1,000,000		$	831,812

(1)	Amounts exclude debt discount on our Exchangeable Notes and debt premium on mortgage loans.

(2)	The secured debt balance includes $240,000 in Term Loans outstanding as of June 30, 2012, December 31, 2011, and June 30, 2011, and $347,200 in Term Loans outstanding as of December 31, 2010.

(3)	The secured debt balance includes Revolving Facility balances of $65,000 as of June 30, 2012, $95,000 as of December 31, 2011, and $70,000 as of June 30, 2011.

(4)	The unsecured debt balance includes Exchangeable Notes of $136,900 as of December 31, 2011, June 30, 2011 and December 31, 2010.

(5)	Tax status of 2012 dividend payments will be available in January 2013.

(6)	Includes $.004 of unrecaptured Section 1250 gain as of December 31, 2011.

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

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

Pennsylvania Real Estate Investment Trust

Statement of Operations - Quarters Ended June 30, 2012 and June 30, 2011

Proportionate Consolidation Method

(in thousands)


	Quarter Ended June 30, 2012									Quarter Ended June 30, 2011
	GAAP			PREIT’s share of unconsolidated partnership (1)			Total			GAAP			PREIT’s share of unconsolidated partnerships (1)			Total
REVENUE:
Base rent	$	72,404		$	6,444		$	78,848		$	70,934		$	6,361		$	77,295
Expense reimbursements		30,912			2,475			33,387			31,355			2,547			33,902
Percentage rent		509			3			512			715			—			715
Lease termination revenue		776			—			776			693			—			693
Other real estate revenue		3,636			342			3,978			3,694			337			4,031

Real estate revenue		108,237			9,264			117,501			107,391			9,245			116,636
Interest and other income		884			—			884			809			—			809

Total revenue		109,121			9,264			118,385			108,200			9,245			117,445

EXPENSES:
Operating expenses:
CAM and real estate taxes		(35,940	)		(1,810	)		(37,750	)		(35,260	)		(2,066	)		(37,326	)
Utilities		(5,713	)		(168	)		(5,881	)		(6,078	)		(229	)		(6,307	)
Other operating expenses		(5,551	)		(677	)		(6,228	)		(6,129	)		(587	)		(6,716	)

Total operating expenses		(47,204	)		(2,655	)		(49,859	)		(47,467	)		(2,882	)		(50,349	)

Depreciation and amortization		(33,400	)		(1,840	)		(35,240	)		(36,614	)		(2,358	)		(38,972	)
Other expenses:
General and administrative expenses		(10,240	)		—			(10,240	)		(10,433	)		—			(10,433	)
Provision for executive separation expenses		(796	)		—			(796	)		—			—			—
Impairment of assets, project costs and other expenses		(39	)		—			(39	)		(353	)		—			(353	)

Total other expenses		(11,075	)		—			(11,075	)		(10,786	)		—			(10,786	)

Interest expense, net⁽²⁾		(31,795	)		(2,817	)		(34,612	)		(34,941	)		(2,858	)		(37,799	)

Total expenses		(123,474	)		(7,312	)		(130,786	)		(129,808	)		(8,098	)		(137,906	)

Loss before equity in income of partnerships		(14,353	)		1,952			(12,401	)		(21,608	)		1,147			(20,461	)
Equity in income of partnerships		1,952			(1,952	)		—			1,147			(1,147	)		—
Gains on sales of real estate		—			—			—			1,450			—			1,450

Net loss		(12,401	)		—			(12,401	)		(19,011	)		—			(19,011	)
Less: net loss attributable to noncontrolling interest		513			—			513			763			—			763

Net loss attributable to PREIT	$	(11,888	)	$	—		$	(11,888	)	$	(18,248	)	$	—		$	(18,248	)
Less: preferred share dividends		(1,845	)		—			(1,845	)		—			—			—

Net loss attributable to PREIT common shareholders	$	(13,733	)	$	—		$	(13,733	)	$	(18,248	)	$	—		$	(18,248	)

(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 $547 and $353 for the quarters ended June 30, 2012 and 2011, respectively.

Pennsylvania Real Estate Investment Trust

Statement of Operations - Six Months Ended June 30, 2012 and June 30, 2011

Proportionate Consolidation Method

(in thousands)


	Six Months Ended June 30, 2012									Six Months Ended June 30, 2011
	GAAP			PREIT’s share of unconsolidated partnerships (1)			Total			GAAP			PREIT’s share of unconsolidated partnerships (1)			Total
REVENUE:
Base rent	$	144,443		$	12,890		$	157,333		$	142,694		$	12,740		$	155,434
Expense reimbursements		62,938			5,226			68,164			65,118			5,141			70,259
Percentage rent		1,427			39			1,466			1,696			21			1,717
Lease termination revenue		1,427			58			1,485			718			—			718
Other real estate revenue		6,858			661			7,519			6,727			642			7,369

Real estate revenue		217,093			18,874			235,967			216,953			18,544			235,497
Interest and other income		1,645			—			1,645			1,727			—			1,727

Total revenue		218,738			18,874			237,612			218,680			18,544			237,224

EXPENSES:
Operating expenses:
CAM and real estate taxes		(72,149	)		(4,011	)		(76,160	)		(72,564	)		(4,365	)		(76,929	)
Utilities		(11,003	)		(332	)		(11,335	)		(11,909	)		(425	)		(12,334	)
Other operating expenses		(10,449	)		(1,258	)		(11,707	)		(12,087	)		(1,099	)		(13,186	)

Total operating expenses		(93,601	)		(5,601	)		(99,202	)		(96,560	)		(5,889	)		(102,449	)

Depreciation and amortization		(67,118	)		(3,691	)		(70,809	)		(71,124	)		(4,328	)		(75,452	)
Other expenses:
General and administrative expenses		(20,124	)		—			(20,124	)		(20,015	)		—			(20,015	)
Provision for executive separation expenses		(796	)		—			(796	)		—			—			—
Impairment of assets, project costs and other expenses		(397	)		—			(397	)		(497	)		—			(497	)

Total other expenses		(21,317	)		—			(21,317	)		(20,512	)		—			(20,512	)

Interest expense, net⁽²⁾		(63,464	)		(5,637	)		(69,101	)		(68,554	)		(5,637	)		(74,191	)

Total expenses		(245,500	)		(14,929	)		(260,429	)		(256,750	)		(15,854	)		(272,604	)

Loss before equity in income of partnerships and gains on sales of real estate		(26,762	)		3,945			(22,817	)		(38,070	)		2,690			(35,380	)
Equity in income of partnerships		3,945			(3,945	)		—			2,690			(2,690	)		—
Gains on sales of real estate		—			—			—			1,450			—			1,450

Net loss		(22,817	)		—			(22,817	)		(33,930	)		—			(33,930	)
Less: net loss attributable to noncontrolling interests		932			—			932			1,364			—			1,364

Net loss attributable to PREIT	$	(21,885	)	$	—		$	(21,885	)	$	(32,566	)	$	—		$	(32,566	)
Less: preferred share dividends		(1,845	)		—			(1,845	)		—			—			—

Net loss attributable to PREIT common shareholders	$	(23,730	)	$	—		$	(23,730	)	$	(32,566	)	$	—		$	(32,566	)

(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 $1,083 and $735 for the six months ended June 30, 2012 and 2011, respectively.

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Quarters Ended June 30, 2012 and 2011

(in thousands)


	Quarter Ended June 30, 2012									Quarter Ended June 30, 2011
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	78,501		$	347		$	78,848		$	76,956		$	339		$	77,295
Expense reimbursements		33,376			11			33,387			33,893			9			33,902
Percentage rent		512			—			512			715			—			715
Lease termination revenue		776			—			776			693			—			693
Other real estate revenue		3,856			122			3,978			3,909			122			4,031

TOTAL REAL ESTATE REVENUE		117,021			480			117,501			116,166			470			116,636

Operating expenses:
CAM and real estate taxes		(37,300	)		(450	)		(37,750	)		(36,917	)		(409	)		(37,326	)
Utilities		(5,880	)		(1	)		(5,881	)		(6,307	)		—			(6,307	)
Other operating expenses		(6,197	)		(31	)		(6,228	)		(6,660	)		(56	)		(6,716	)

TOTAL OPERATING EXPENSES		(49,377	)		(482	)		(49,859	)		(49,884	)		(465	)		(50,349	)

NET OPERATING INCOME	$	67,644		$	(2	)	$	67,642		$	66,282		$	5		$	66,287


	Quarter Ended June 30, 2012									Quarter Ended June 30, 2011
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	72,650		$	5,851		$	78,501		$	71,811		$	5,145		$	76,956
Expense reimbursements		32,352			1,024			33,376			32,699			1,194			33,893
Percentage rent		510			2			512			715			—			715
Lease termination revenue		771			5			776			78			615			693
Other real estate revenue		3,823			33			3,856			3,845			64			3,909

TOTAL REAL ESTATE REVENUE		110,106			6,915			117,021			109,148			7,018			116,166

Operating expenses:
CAM and real estate taxes		(36,279	)		(1,021	)		(37,300	)		(35,678	)		(1,239	)		(36,917	)
Utilities		(5,814	)		(66	)		(5,880	)		(6,216	)		(91	)		(6,307	)
Other operating expenses		(5,943	)		(254	)		(6,197	)		(6,560	)		(100	)		(6,660	)

TOTAL OPERATING EXPENSES		(48,036	)		(1,341	)		(49,377	)		(48,454	)		(1,430	)		(49,884	)

NET OPERATING INCOME	$	62,070		$	5,574		$	67,644		$	60,694		$	5,588		$	66,282

(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.

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Six Months Ended June 30, 2012 and 2011

(in thousands)


	Six Months Ended June 30, 2012									Six Months Ended June 30, 2011
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	156,639		$	694		$	157,333		$	154,743		$	691		$	155,434
Expense reimbursements		68,139			25			68,164			70,238			21			70,259
Percentage rent		1,466			—			1,466			1,717			—			1,717
Lease termination revenue		1,485			—			1,485			718			—			718
Other real estate revenue		7,271			248			7,519			7,127			242			7,369

TOTAL REAL ESTATE REVENUE		235,000			967			235,967			234,543			954			235,497

Operating expenses:
CAM and real estate taxes		(75,289	)		(871	)		(76,160	)		(76,110	)		(819	)		(76,929	)
Utilities		(11,335	)		—			(11,335	)		(12,334	)		—			(12,334	)
Other operating expenses		(11,636	)		(71	)		(11,707	)		(13,054	)		(132	)		(13,186	)

TOTAL OPERATING EXPENSES		(98,260	)		(942	)		(99,202	)		(101,498	)		(951	)		(102,449	)

NET OPERATING INCOME	$	136,740		$	25		$	136,765		$	133,045		$	3		$	133,048


	Six Months Ended June 30, 2012									Six Months Ended June 30, 2011
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total
Real estate revenue:
Base rent	$	144,964		$	11,675		$	156,639		$	143,821		$	10,922		$	154,743
Expense reimbursements		65,759			2,380			68,139			67,613			2,625			70,238
Percentage rent		1,447			19			1,466			1,701			16			1,717
Lease termination revenue		1,476			9			1,485			103			615			718
Other real estate revenue		7,209			62			7,271			7,009			118			7,127

TOTAL REAL ESTATE REVENUE		220,855			14,145			235,000			220,247			14,296			234,543

Operating expenses:
CAM and real estate taxes		(72,842	)		(2,447	)		(75,289	)		(73,328	)		(2,782	)		(76,110	)
Utilities		(11,236	)		(99	)		(11,335	)		(12,204	)		(130	)		(12,334	)
Other operating expenses		(11,192	)		(444	)		(11,636	)		(12,699	)		(355	)		(13,054	)

TOTAL OPERATING EXPENSES		(95,270	)		(2,990	)		(98,260	)		(98,231	)		(3,267	)		(101,498	)

NET OPERATING INCOME	$	125,585		$	11,155		$	136,740		$	122,016		$	11,029		$	133,045

(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.

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,
	2012			2011			2012			2011
Net loss	$	(12,401	)	$	(19,011	)	$	(22,817	)	$	(33,930	)
Preferred share dividends		(1,845	)		—			(1,845	)		—
Noncontrolling interest		513			763			932			1,364
Dividends on unvested restricted shares		(128	)		(144	)		(189	)		(266	)

Loss used to calculate earnings per share - basic and diluted	$	(13,861	)	$	(18,392	)	$	(23,919	)	$	(32,832	)

Basic loss per share	$	(0.25	)	$	(0.34	)	$	(0.43	)	$	(0.60	)
Diluted loss per share	$	(0.25	)	$	(0.34	)	$	(0.43	)	$	(0.60	)
Weighted average common shares outstanding		55,899			55,656			55,742			55,571

Weighted average unvested restricted shares		(756	)		(976	)		(716	)		(1,004	)

Weighted average shares outstanding - basic		55,143			54,680			55,026			54,567

Weighted average effect of common share equivalents⁽¹⁾		—			—			—			—

Total weighted average shares outstanding - diluted		55,143			54,680			55,026			54,567

(1)

The Company had net losses for all periods presented. Therefore, the effect of common share equivalents of 1,007 and 851 for the quarters ended June 30, 2012 and 2011, respectively, and 947 and 922 for the six months ended June 30, 2012 and 2011, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive.

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)


	Quarter Ended June 30, 2012									Quarter Ended June 30, 2011
	Consolidated			PREIT’s share of unconsolidated partnerships			Total			Consolidated			PREIT’s share of unconsolidated partnerships			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue⁽¹⁾	$	108,237		$	9,264		$	117,501		$	107,391		$	9,245		$	116,636
Operating expenses		(47,204	)		(2,655	)		(49,859	)		(47,467	)		(2,882	)		(50,349	)

NET OPERATING INCOME		61,033			6,609			67,642			59,924			6,363			66,287
General and administrative expenses		(10,240	)		—			(10,240	)		(10,433	)		—			(10,433	)
Provision for executive separation expenses		(796	)		—			(796	)		—			—			—
Interest and other income		884			—			884			809			—			809
Project costs and other expenses		(39	)		—			(39	)		(128	)		—			(128	)
Interest expense, net		(31,795	)		(2,817	)		(34,612	)		(34,941	)		(2,858	)		(37,799	)
Gains on sales of non-operating real estate		—			—			—			710			—			710
Depreciation on non real estate assets		(156	)		—			(156	)		(222	)		—			(222	)
Preferred share dividends		(1,845	)		—			(1,845	)		—			—			—

FFO⁽²⁾		17,046			3,792			20,838			15,719			3,505			19,224
Gains on sales of real estate		—			—			—			740			—			740
Depreciation on real estate assets		(33,244	)		(1,840	)		(35,084	)		(36,392	)		(2,358	)		(38,750	)
Impairment of assets		—			—			—			(225	)		—			(225	)
Equity in income of partnerships		1,952			(1,952	)		—			1,147			(1,147	)		—
Preferred share dividends		1,845			—			1,845			—			—			—

Net loss	$	(12,401	)	$	—		$	(12,401	)	$	(19,011	)	$	—		$	(19,011	)

FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	17,046		$	3,792		$	20,838		$	15,719		$	3,505		$	19,224
Adjustments:
Straight line rent		(172	)		33			(139	)		441			74			515
Recurring capital expenditures		(1,657	)		(106	)		(1,763	)		(4,428	)		(110	)		(4,538	)
Tenant allowances		(6,131	)		(182	)		(6,313	)		(4,612	)		—			(4,612	)
Capitalized leasing costs		(1,176	)		—			(1,176	)		(1,366	)		—			(1,366	)
Amortization of mortgage loan premium		(88	)		—			(88	)		(294	)		—			(294	)
Amortization of above- and below-market lease intangibles		(27	)		(31	)		(58	)		57			(44	)		13
Amortization of exchangeable notes debt discount		342			—			342			487			—			487

FAD	$	8,137		$	3,506		$	11,643		$	6,004		$	3,425		$	9,429

Weighted average number of shares outstanding								55,143									54,680

Weighted average effect of full conversion of OP Units								2,309									2,329
Effect of common share equivalents								1,007									851

Total weighted average shares outstanding, including OP Units								58,459									57,860

FFO							$	20,838								$	19,224
Provision for executive separation expenses								796									—

FFO AS ADJUSTED							$	21,634								$	19,224


FFO PER DILUTED SHARE AND OP UNIT							$	0.36								$	0.33

FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED							$	0.37								$	0.33


FAD PER DILUTED SHARE AND OP UNIT							$	0.20								$	0.16


DIVIDEND PER COMMON SHARE							$	0.16								$	0.15


PAYOUT RATIOS

Payout ratio of FFO								31.7	%⁽²⁾								36.5	%⁽³⁾

Payout ratio of FFO as adjusted								31.5	%⁽²⁾								36.5	%⁽³⁾

Payout ratio of FAD								46.8	%⁽²⁾								67.4	%⁽³⁾

(1)	Total includes the non-cash effect of straight-line rent.

(2)	In accordance with NAREIT guidance regarding the definition of FFO, impairment losses of depreciable real estate are excluded from FFO. Prior period FFO and FFO per diluted share and OP Unit amounts have been revised to reflect this updated NAREIT guidance.

(2)	Twelve months ended June 30, 2012.

(3)	Twelve months ended June 30, 2011.

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)


	Six Months Ended June 30, 2012									Six Months Ended June 30, 2011
	Consolidated			PREIT’s share of unconsolidated partnerships			Total			Consolidated			PREIT’s share of unconsolidated partnerships			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue⁽¹⁾	$	217,093		$	18,874		$	235,967		$	216,953		$	18,544		$	235,497
Operating expenses		(93,601	)		(5,601	)		(99,202	)		(96,560	)		(5,889	)		(102,449	)

NET OPERATING INCOME		123,492			13,273			136,765			120,393			12,655			133,048
General and administrative expenses		(20,124	)		—			(20,124	)		(20,015	)		—			(20,015	)
Provision for executive separation expenses		(796	)		—			(796	)		—			—			—
Interest and other income		1,645			—			1,645			1,727			—			1,727
Project costs and other expenses		(397	)		—			(397	)		(272	)		—			(272	)
Interest expense, net		(63,464	)		(5,637	)		(69,101	)		(68,554	)		(5,637	)		(74,191	)
Gains on sales of non operating real estate		—			—			—			710			—			710
Depreciation on non real estate assets		(347	)		—			(347	)		(474	)		—			(474	)
Preferred share dividends		(1,845	)		—			(1,845	)		—			—			—

FFO⁽²⁾		38,164			7,636			45,800			33,515			7,018			40,533
Gains on sales of real estate		—			—			—			740			—			740
Depreciation on real estate assets		(66,771	)		(3,691	)		(70,462	)		(70,650	)		(4,328	)		(74,978	)
Impairment of assets		—			—			—			(225	)		—			(225	)
Equity in income of partnerships		3,945			(3,945	)		—			2,690			(2,690	)		—
Preferred share dividends		1,845			—			1,845			—			—			—

Net loss	$	(22,817	)	$	—		$	(22,817	)	$	(33,930	)	$	—		$	(33,930	)

FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	38,164		$	7,636		$	45,800		$	33,515		$	7,018		$	40,533
Adjustments:
Straight line rent		(326	)		73			(253	)		165			141			306
Recurring capital expenditures		(1,792	)		(205	)		(1,997	)		(4,758	)		(143	)		(4,901	)
Tenant allowances		(8,048	)		(197	)		(8,245	)		(5,841	)					(5,841	)
Capitalized leasing costs		(2,501	)		—			(2,501	)		(2,524	)		—			(2,524	)
Amortization of mortgage loan premium		(170	)		—			(170	)		(576	)		—			(576	)
Amortization of above- and below-market lease intangibles		(143	)		(63	)		(206	)		104			(91	)		13
Amortization of exchangeable notes debt discount		849			—			849			966			—			966

FAD	$	26,033		$	7,244		$	33,277		$	21,051		$	6,925		$	27,976

Weighted average number of shares outstanding								55,026									54,567

Weighted average effect of full conversion of OP Units								2,318									2,329
Effect of common share equivalents								947									922

Total weighted average shares outstanding, including OP Units								58,291									57,818

FFO							$	45,800								$	40,533
Provision for executive separation expenses								796									—


FFO AS ADJUSTED							$	46,596								$	40,533

FFO PER DILUTED SHARE AND OP UNIT							$	0.79								$	0.70


FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED							$	0.80								$	0.70


FAD PER DILUTED SHARE AND OP UNIT							$	0.57								$	0.48


DIVIDEND PER COMMON SHARE							$	0.31								$	0.30


PAYOUT RATIOS

Payout ratio of FFO								31.7	%⁽³⁾								36.5	%⁽⁴⁾

Payout ratio of FFO as adjusted								31.5	%⁽³⁾								36.5	%⁽⁴⁾

Payout ratio of FAD								46.8	%⁽³⁾								67.4	%⁽⁴⁾

⁽¹⁾	Total includes the non-cash effect of straight-line rent.

⁽²⁾	In accordance with NAREIT guidance regarding the definition of FFO, impairment losses of depreciable real estate are excluded from FFO. Prior period FFO and FFO per diluted share and OP Unit amounts have been revised to reflect this updated NAREIT guidance.

⁽²⁾	Twelve months ended June 30, 2012.

⁽³⁾	Twelve months ended June 30, 2011

Pennsylvania Real Estate Investment Trust

2012 Leasing Activity Summary


					Average Base Rent psf				Change in Base Rent psf						Annualized Tenant Improvements
	Number		GLA		Previous		New		Dollar			Percentage			psf⁽¹⁾
New Leases - Previously Leased Space:

1st Quarter⁽²⁾		32		119,188	$	20.58	$	21.54	$	0.96			4.7	%	$	3.02
2nd Quarter⁽³⁾		33		103,243		31.36		29.49		(1.87	)		-6.0	%		2.92

Total/Average		65		222,431	$	25.58	$	25.23	$	(0.35	)		-1.4	%	$	2.97

New Leases - Previously Vacant Space: ⁽⁴⁾

1st Quarter		35		124,425		N/A	$	28.60	$	28.60			N/A		$	3.82
2nd Quarter		35		168,069		N/A		17.98		17.98			N/A			3.79

Total/Average		70		292,494		N/A	$	22.50	$	22.50			N/A		$	3.80

Renewal: ⁽⁵⁾

1st Quarter⁽²⁾		139		481,428	$	22.28	$	22.92	$	0.64			2.9	%	$	—
2nd Quarter⁽³⁾		172		538,905		26.48		27.71		1.23			4.6	%		0.01

Total/Average		311		1,020,333	$	24.50	$	25.45	$	0.95			3.9	%	$	0.01

Anchor New:

1st Quarter		3		285,136		N/A	$	13.87	$	13.87			N/A		$	3.40
2nd Quarter		0		—		N/A		—		—			N/A			—

Total/Average		3		285,136		N/A	$	13.87	$	13.87			N/A		$	3.40

Anchor Renewal:

1st Quarter		1		100,115	$	3.13	$	3.13	$	—			0.0	%	$	—
2nd Quarter		1		212,000		0.35		0.35		—			0.0	%		—

Total/Average		1		312,115	$	1.24	$	1.24	$	—			0.0	%	$	—

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

(2)	Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were -1.3% for New Leases - Previously Leased Space and 0.0% for Renewals.

(3)	Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were -8.1% for New Leases - Previously Leased Space and 1.5% for Renewals.

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

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

Pennsylvania Real Estate Investment Trust

Summarized Rent Per Square Foot and Occupancy ⁽¹⁾ Percentages


	June 30, 2012								June 30, 2011								Change
	Avg Base		Occupancy						Avg Base		Occupancy						Avg Base			Occupancy
	Rent		Total			Non-Anchor			Rent		Total			Non-Anchor			Rent			Total			Non-Anchor
Malls weighted average⁽²⁾	$	31.74		91.5	%		86.8	%	$	32.40		90.2	%		86.3	%		-2.0	%		1.3	%		0.5	%
Strip and Power Centers weighted average	$	16.02		95.8	%		93.9	%	$	16.29		94.5	%		91.9	%		-1.7	%		1.3	%		2.0	%
Retail Portfolio weighted average	$	28.22		91.9	%		87.7	%	$	28.83		90.6	%		87.1	%		-2.1	%		1.3	%		0.6	%

Consolidated Properties	$	29.74		91.5	%		86.7	%	$	30.37		90.2	%		86.1	%		-2.1	%		1.3	%		0.6	%
Unconsolidated Properties	$	23.15		95.1	%		93.1	%	$	23.59		94.1	%		92.1	%		-1.9	%		1.0	%		1.0	%
Same Properties	$	28.22		91.9	%		87.7	%	$	28.83		90.6	%		87.1	%		-2.1	%		1.3	%		0.6	%

(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 $14.56/sq ft as of June 30, 2012 and $14.20/sq ft as of June 30, 2011.

Pennsylvania Real Estate Investment Trust

Mall Sales and Rent Per Square Foot


				June 30, 2012							June 30, 2011							Change
	% of Rolling 12 Month 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		27.0	%
Cherry Hill Mall				$	50.02	$	630		12.9	%	$	46.51	$	556		13.6	%		7.6	%		13.3	%		-0.7	%
Lehigh Valley Mall					44.97		582		11.4	%		45.40		525		12.6	%		-1.0	%		10.9	%		-1.2	%
Woodland Mall					39.76		543		12.1	%		40.66		508		13.0	%		-2.2	%		6.9	%		-0.9	%
Jacksonville Mall					35.50		515		10.3	%		33.08		487		10.4	%		7.3	%		5.7	%		-0.1	%
Dartmouth Mall					31.24		433		11.2	%		30.07		398		11.5	%		3.9	%		8.8	%		-0.3	%

Sales per square foot between $350 - $400		37.6	%
Willow Grove Park					42.49		399		15.8	%		43.91		398		16.7	%		-3.2	%		0.3	%		-0.9	%
Patrick Henry Mall					39.43		394		14.2	%		40.34		389		13.9	%		-2.3	%		1.3	%		0.3	%
Springfield Mall					33.65		390		14.4	%		34.24		355		14.4	%		-1.7	%		9.9	%		0.0	%
The Mall at Prince Georges					37.33		385		14.6	%		36.73		390		13.7	%		1.6	%		-1.3	%		0.9	%
The Gallery at Market East					36.79		382		14.3	%		37.55		360		14.3	%		-2.0	%		6.1	%		0.0	%
Wyoming Valley Mall					30.51		382		11.7	%		31.26		364		12.2	%		-2.4	%		4.9	%		-0.5	%
Valley View Mall					29.20		379		11.5	%		29.70		366		11.9	%		-1.7	%		3.6	%		-0.4	%
Viewmont Mall					29.37		375		12.6	%		29.59		364		13.0	%		-0.7	%		3.0	%		-0.4	%
Valley Mall					25.90		375		11.1	%		25.76		366		11.0	%		0.5	%		2.5	%		0.1	%
Moorestown Mall					34.67		362		14.5	%		35.84		376		15.2	%		-3.3	%		-3.7	%		-0.7	%
Capital City Mall					34.37		361		11.7	%		33.34		353		11.8	%		3.1	%		2.3	%		-0.1	%
Crossroads Mall					21.44		356		8.9	%		20.76		322		9.1	%		3.2	%		10.6	%		-0.2	%

Sales per square foot between $300 - $349		17.3	%
Francis Scott Key Mall					28.05		344		11.5	%		27.40		334		11.5	%		2.4	%		3.0	%		0.0	%
Exton Square Mall					35.11		340		13.5	%		36.33		323		13.7	%		-3.4	%		5.3	%		-0.2	%
Plymouth Meeting Mall					28.84		336		10.3	%		31.11		326		10.4	%		-7.3	%		3.1	%		-0.1	%
Magnolia Mall					27.62		330		12.5	%		28.50		324		13.2	%		-3.1	%		1.9	%		-0.7	%
Logan Valley Mall					26.63		324		11.4	%		26.11		310		11.2	%		2.0	%		4.5	%		0.2	%
Cumberland Mall					27.11		324		12.9	%		28.98		312		13.5	%		-6.4	%		3.8	%		-0.6	%
Gadsden Mall					20.48		316		9.9	%		21.54		287		9.3	%		-4.9	%		10.1	%		0.6	%

Sales per square foot under $300		18.1	%
Palmer Park Mall					25.66		298		11.5	%		24.58		290		12.3	%		4.4	%		2.8	%		-0.8	%
New River Valley Mall					23.61		289		10.2	%		24.62		282		10.6	%		-4.1	%		2.5	%		-0.4	%
Wiregrass Commons Mall					25.27		285		10.8	%		26.77		282		11.5	%		-5.6	%		1.1	%		-0.7	%
Uniontown Mall					21.11		282		10.1	%		22.53		287		10.7	%		-6.3	%		-1.7	%		-0.6	%
Nittany Mall					20.67		275		10.5	%		21.66		276		11.2	%		-4.6	%		-0.4	%		-0.7	%
Lycoming Mall					20.72		272		10.1	%		21.40		262		10.4	%		-3.2	%		3.8	%		-0.3	%
North Hanover Mall					22.12		262		13.3	%		26.66		268		12.5	%		-17.0	%		-2.2	%		0.8	%
South Mall					22.24		258		11.7	%		24.04		239		12.2	%		-7.5	%		7.9	%		-0.5	%
Washington Crown Center					18.27		253		10.6	%		19.90		239		11.8	%		-8.2	%		5.9	%		-1.2	%
Orlando Fashion Square					27.39		252		14.2	%		29.81		241		19.2	%		-8.1	%		4.6	%		-5.0	%
Beaver Valley Mall					20.89		245		12.7	%		22.02		246		13.7	%		-5.1	%		-0.4	%		-1.0	%
Phillipsburg Mall					22.67		244		11.6	%		23.96		227		12.3	%		-5.4	%		7.5	%		-0.7	%
Chambersburg Mall					19.85		227		9.5	%		22.53		236		9.9	%		-11.9	%		-3.8	%		-0.4	%
Voorhees Town Center					28.55		222		11.1	%		32.67		212		12.5	%		-12.6	%		4.7	%		-1.4	%

Malls weighted average				$	31.74	$	378		12.2	%	$	32.40	$	359		12.8	%		-2.0	%		5.3	%		-0.6	%

Consolidated Properties				$	30.87	$	364		12.3	%	$	31.54	$	348		12.7	%		-2.1	%		4.6	%		-0.4	%
Unconsolidated Properties				$	41.23	$	522		12.1	%	$	41.73	$	468		13.1	%		-1.2	%		11.5	%		-1.0	%
Same Properties				$	31.74	$	378		12.2	%	$	32.40	$	359		12.8	%		-2.0	%		5.3	%		-0.6	%

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

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

Pennsylvania Real Estate Investment Trust

Mall Occupancy ⁽¹⁾ - Owned GLA


	June 30, 2012						June 30, 2011						Change
	Total			Non-Anchor			Total			Non-Anchor			Total			Non-Anchor
Beaver Valley Mall		91.0	%		80.8	%		89.4	%		77.2	%		1.6	%		3.6	%
Capital City Mall		97.7	%		96.0	%		97.3	%		95.3	%		0.4	%		0.7	%
Chambersburg Mall		87.9	%		74.2	%		84.3	%		66.5	%		3.6	%		7.7	%
Cherry Hill Mall		91.9	%		90.2	%		93.0	%		91.6	%		-1.1	%		-1.4	%
Crossroads Mall		95.9	%		91.2	%		88.9	%		74.6	%		7.0	%		16.6	%
Cumberland Mall		93.8	%		89.7	%		92.3	%		87.3	%		1.5	%		2.4	%
Dartmouth Mall		96.9	%		95.0	%		96.0	%		93.4	%		0.9	%		1.6	%
Exton Square Mall		91.8	%		82.0	%		91.7	%		81.8	%		0.1	%		0.2	%
Francis Scott Key Mall		95.9	%		93.3	%		98.6	%		97.7	%		-2.7	%		-4.4	%
Gadsden Mall		93.3	%		83.2	%		92.6	%		81.5	%		0.7	%		1.7	%
The Gallery at Market East (2)		61.5	%		77.9	%		61.3	%		77.4	%		0.2	%		0.5	%
Jacksonville Mall		98.7	%		97.5	%		99.1	%		98.3	%		-0.4	%		-0.8	%
Lehigh Valley Mall		96.5	%		94.2	%		96.1	%		94.6	%		0.4	%		-0.4	%
Logan Valley Mall		93.4	%		84.2	%		95.0	%		88.1	%		-1.6	%		-3.9	%
Lycoming Mall		96.4	%		93.3	%		95.9	%		92.3	%		0.5	%		1.0	%
Magnolia Mall		98.2	%		95.8	%		98.3	%		96.1	%		-0.1	%		-0.3	%
Moorestown Mall		88.9	%		72.4	%		91.2	%		80.2	%		-2.3	%		-7.8	%
New River Valley Mall		97.8	%		96.4	%		97.6	%		96.0	%		0.2	%		0.4	%
Nittany Mall		94.7	%		89.2	%		94.0	%		87.8	%		0.7	%		1.4	%
North Hanover Mall		93.4	%		84.3	%		91.8	%		80.4	%		1.6	%		3.9	%
Orlando Fashion Square		90.8	%		80.5	%		92.0	%		83.1	%		-1.2	%		-2.6	%
Palmer Park Mall		94.4	%		82.0	%		96.3	%		88.1	%		-1.9	%		-6.1	%
Patrick Henry Mall		93.0	%		86.4	%		92.4	%		85.3	%		0.6	%		1.1	%
Phillipsburg Mall		83.4	%		61.7	%		88.0	%		72.4	%		-4.6	%		-10.7	%
Plymouth Meeting Mall		84.8	%		76.9	%		82.7	%		73.7	%		2.1	%		3.2	%
The Mall at Prince Georges		97.6	%		95.0	%		95.0	%		89.5	%		2.6	%		5.5	%
South Mall		85.6	%		78.1	%		89.5	%		84.0	%		-3.9	%		-5.9	%
Springfield Mall		87.9	%		87.9	%		92.8	%		92.8	%		-4.9	%		-4.9	%
Uniontown Mall		88.7	%		82.4	%		81.1	%		74.2	%		7.6	%		8.2	%
Valley Mall		94.9	%		91.3	%		93.7	%		89.2	%		1.2	%		2.1	%
Valley View Mall		96.9	%		95.8	%		96.3	%		94.9	%		0.6	%		0.9	%
Viewmont Mall		99.2	%		98.0	%		99.4	%		98.5	%		-0.2	%		-0.5	%
Voorhees Town Center		63.5	%		63.0	%		60.5	%		59.9	%		3.0	%		3.1	%
Washington Crown Center		93.2	%		87.5	%		89.3	%		80.3	%		3.9	%		7.2	%
Willow Grove Park (3)		93.4	%		88.6	%		70.2	%		92.8	%		23.2	%		-4.2	%
Wiregrass Commons Mall		91.1	%		87.2	%		87.5	%		81.9	%		3.6	%		5.3	%
Woodland Mall		92.0	%		92.0	%		95.1	%		95.1	%		-3.1	%		-3.1	%
Wyoming Valley Mall		96.9	%		91.1	%		96.5	%		90.1	%		0.4	%		1.0	%

Malls weighted average (4)		91.5	%		86.8	%		90.2	%		86.3	%		1.3	%		0.5	%

Consolidated Properties		91.3	%		86.4	%		89.9	%		85.8	%		1.4	%		0.6	%
Unconsolidated Properties		94.9	%		92.5	%		95.3	%		94.1	%		-0.4	%		-1.6	%
Same Properties		91.5	%		86.8	%		90.2	%		86.3	%		1.3	%		0.5	%

(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.

(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 March 31, 2012 and June 30, 2011, respectively.

(3)

The total occupancy percentage for Willow Grove Park as of June 30, 2011 includes the former Strawbridge’s store that is currently under redevelopment. This vacant department store represents 26.6% of the owned mall GLA as of June 30, 2011. In December 2011, we decommissioned 206,834 sf, of which 113,692 sf is related the new jcpenney store, 41,152 sf is related to the new Nordstrom Rack store and 24,695 sf is related to inline space.

(4)

Reflects the decommissioning of space related to redevelopment activity. A space is decommissioned once tenant relocations have been completed and demolition/reconfiguration of the former space has commenced. Space is recommissioned once the first tenant in the new/reconfigured wing or area is open and the remaining space is in leaseable condition.

Pennsylvania Real Estate Investment Trust

Strip and Power Center Rent Per Square Foot and Occupancy ⁽¹⁾ Percentages


	June 30, 2012								June 30, 2011								Change
	Avg		Occupancy						Avg		Occupancy						Avg			Occupancy
	Base Rent		Total			Non-Anchor			Base Rent		Total			Non-Anchor			Base Rent			Total			Non-Anchor
Christiana Center	$	20.58		98.8	%		96.8	%	$	20.16		96.0	%		89.1	%		2.1	%		2.8	%		7.7	%
The Commons at Magnolia		15.74		80.4	%		75.6	%		15.33		87.3	%		84.2	%		2.7	%		-6.9	%		-8.6	%
Metroplex Shopping Center		20.03		100.0	%		100.0	%		19.84		100.0	%		100.0	%		1.0	%		0.0	%		0.0	%
The Court at Oxford Valley		15.00		91.7	%		90.5	%		15.27		91.7	%		90.5	%		-1.8	%		0.0	%		0.0	%
Paxton Towne Centre		14.60		100.0	%		100.0	%		15.26		100.0	%		100.0	%		-4.3	%		0.0	%		0.0	%
Red Rose Commons		13.14		100.0	%		100.0	%		13.14		100.0	%		100.0	%		0.0	%		0.0	%		0.0	%
Springfield Park		23.88		90.0	%		71.7	%		21.35		98.2	%		94.9	%		11.9	%		-8.2	%		-23.2	%
Whitehall Mall		12.48		93.0	%		85.5	%		13.51		84.8	%		67.7	%		-7.6	%		8.2	%		17.8	%

Weighted Average	$	16.02		95.8	%		93.9	%	$	16.29		94.5	%		91.9	%		-1.7	%		1.3	%		2.0	%

Consolidated Properties	$	16.15		97.2	%		95.1	%	$	16.33		97.0	%		94.8	%		-1.1	%		0.2	%		0.3	%
Unconsolidated Properties	$	15.97		95.2	%		93.5	%	$	16.28		93.4	%		90.9	%		-1.9	%		1.8	%		2.6	%
Same Properties	$	16.02		95.8	%		93.9	%	$	16.29		94.5	%		91.9	%		-1.7	%		1.3	%		2.0	%

(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.

Pennsylvania Real Estate Investment Trust

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

(dollars in thousands)


	Paying Minimum Rent				Paying Percentage of Sales in lieu of Minimum Rent ⁽²⁾				Total				Minimum Rent
Tenant ⁽¹⁾	Number of Locations		GLA		Number of Locations		GLA		Total Number of Locations		Total GLA		Annualized Minimum Rent		PREIT’s share of Annualized Minimum Rent ⁽³⁾		Percent of PREIT’s Total Retail Minimum Rent
Gap, Inc.		40		517,423		4		42,666		44		560,089	$	11,245	$	10,277		3.32	%
J.C. Penney Corporation, Inc.		24		2,370,409		6		824,327		30		3,194,736		7,679		7,679		2.48	%
Foot Locker, Inc.		58		271,609		9		63,873		67		335,482		7,766		7,223		2.33	%
Limited Brands, Inc.		57		272,225		15		48,323		72		320,548		7,568		7,122		2.30	%
American Eagle Outfitters, Inc.		40		218,381		1		4,752		41		223,133		7,011		6,698		2.16	%
Zale Corporation		72		52,293		0		—		72		52,293		5,693		5,397		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		39		60,492		0		—		39		60,492		4,694		4,538		1.47	%
Dick’s Sporting Goods, Inc.		8		371,224		2		95,935		10		467,159		4,845		4,124		1.33	%
Luxottica Group S.p.A.		47		117,054		3		5,863		50		122,917		4,303		3,951		1.28	%
Abercrombie & Fitch Co.		19		128,443		0		—		19		128,443		3,872		3,490		1.13	%
Genesco, Inc.		59		77,834		3		3,044		62		80,878		3,512		3,369		1.09	%
Ascena Retail Group, Inc.		34		162,464		11		43,182		45		205,646		3,637		3,345		1.08	%
Commonwealth of Pennsylvania		2		229,244		0		—		2		229,244		3,092		3,092		1.00	%
Aeropostale, Inc.		31		108,938		8		26,769		39		135,707		3,258		3,022		0.98	%
Barnes & Noble, Inc.		9		271,086		0		—		9		271,086		4,013		2,977		0.96	%
Best Buy Co., Inc.		20		202,163		0		—		20		202,163		3,955		2,959		0.96	%
Hallmark Cards, Inc.		34		140,838		3		11,833		37		152,671		3,065		2,893		0.93	%
Burlington Coat Factory		6		537,986		0		—		6		537,986		2,826		2,826		0.91	%
Shoe Show, Inc.		25		174,757		5		—		30		174,757		2,906		2,810		0.91	%

Total Top 20 Tenants		648		9,081,259		75		2,051,344		723		11,132,603	$	100,385	$	93,094		30.07	%

Total Leases										3,036					$	309,568		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 rent from partnership properties based on PREIT’s ownership percentage in the respective partnerships.

Pennsylvania Real Estate Investment Trust

Lease Expirations as of June 30, 2012

(dollars in thousands except psf amounts)

Non-Anchors⁽¹⁾


			Gross Leasable Area					Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA⁽²⁾		Percent of Total			Minimum Rent in Expiring Year⁽²⁾		PREIT’s Share of Minimum Rent in Expiring Year⁽³⁾		Percent of PREIT’s Total			Average Expiring Minimum Rent psf
Holdover		250		618,328		5.1	%	$	17,800	$	16,518		6.1	%	$	28.79
2012		196		438,696		3.6	%		11,195		10,712		4.0	%		25.52
2013		464		1,608,755		13.4	%		33,684		31,518		11.7	%		20.94
2014		441		1,462,872		12.1	%		33,462		31,197		11.6	%		22.87
2015		309		1,442,110		12.0	%		33,053		30,068		11.1	%		22.92
2016		327		1,446,715		12.0	%		38,697		34,641		12.8	%		26.75
2017		235		1,048,482		8.7	%		27,750		24,906		9.2	%		26.47
2018		187		1,005,118		8.3	%		25,953		23,671		8.8	%		25.82
2019		137		610,016		5.1	%		18,201		17,292		6.4	%		29.84
2020		130		922,291		7.7	%		19,807		18,659		6.9	%		21.48
2021		124		589,215		4.9	%		14,768		13,225		4.9	%		25.06
Thereafter		126		849,678		7.1	%		18,486		17,288		6.5	%		21.76

Total/Average		2,926		12,042,276		100.0	%	$	292,856	$	269,695		100.0	%	$	24.32

Anchors⁽¹⁾


			Gross Leasable Area					Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring⁽⁴⁾		Expiring GLA		Percent of Total			Minimum Rent in Expiring Year		PREIT’s Share of Minimum Rent in Expiring Year⁽³⁾		Percent of PREIT’s Total			Average Expiring Minimum Rent psf
2013		13		1,035,455		9.1	%	$	4,294	$	4,294		10.8	%		4.15
2014		15		1,491,412		13.1	%		4,113		3,651		9.2	%		2.76
2015		18		1,715,835		15.0	%		5,115		5,115		12.8	%		2.98
2016		20		1,895,436		16.6	%		4,777		4,777		12.0	%		2.52
2017		10		1,233,341		10.8	%		3,829		3,398		8.5	%		3.10
2018		7		878,080		7.7	%		4,398		4,398		11.0	%		5.01
2019		7		770,343		6.8	%		2,014		2,014		5.1	%		2.61
2020		4		346,039		3.0	%		1,414		1,414		3.5	%		4.09
2021		4		426,239		3.7	%		3,059		1,775		4.5	%		7.18
Thereafter		12		1,615,512		14.2	%		9,037		9,037		22.6	%		5.59

Total/Average		110		11,407,692		100.0	%	$	42,050	$	39,873		100.0	%	$	3.69

(1)	Only includes owned space.

(2)	Does not include tenants occupying space under agreements with initial terms of less than one year. The GLA of these tenants is 338,809 sf.

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

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

Pennsylvania Real Estate Investment Trust

Retail Gross Leasable Area Occupancy Summary as of June 30, 2012


	Owned GLA
	Occupied						Vacant
			Non-Anchor
	Anchor		Large Format⁽¹⁾		Small Shop⁽²⁾		Anchor		Non-Anchor		GLA Not Owned		Total GLA
Malls
Beaver Valley Mall		511,267		148,740		211,874		—		85,745		204,770		1,162,396
Capital City Mall		204,301		63,586		209,597		—		11,285		120,000		608,769
Chambersburg Mall		241,690		19,651		138,237		—		54,845				454,423
Cherry Hill Mall⁽³⁾		138,000		204,015		408,187		—		66,528		478,885		1,295,615
Crossroads Mall		254,211		74,108		128,334		—		19,625				476,278
Cumberland Mall		264,348		212,538		151,940		—		41,841		273,230		943,897
Dartmouth Mall		208,460		142,274		163,868		—		16,196		140,000		670,798
Exton Square Mall		440,301		26,617		275,534		—		66,362		277,468		1,086,282
Francis Scott Key Mall		222,176		140,622		186,345		—		23,550		139,333		712,026
Gadsden Mall		300,960		66,429		99,981		—		33,520		—		500,890
The Gallery at Market East		350,115		73,975		242,336		328,390		89,616		—		1,084,432
Jacksonville Mall		242,115		98,693		141,711		—		6,208		—		488,727
Lehigh Valley Mall		376,694		171,800		368,804		—		33,223		207,292		1,157,813
Logan Valley Mall		455,060		43,943		230,984		—		51,753				781,740
Lycoming Mall		333,413		182,268		173,500		—		25,425		120,000		834,606
Magnolia Mall		343,118		86,608		172,497		—		11,224				613,447
Moorestown Mall		408,356		25,527		172,004		—		75,288		321,200		1,002,375
New River Valley Mall		175,306		134,996		121,316		—		9,658				441,276
Nittany Mall		221,462		12,500		179,789		—		23,293		95,000		532,044
North Hanover Mall		206,792		21,047		104,528		—		23,344				355,711
Orlando Fashion Square		491,999		136,808		217,402		—		86,066		155,576		1,087,851
Palmer Park Mall		314,235		—		117,830		—		25,866				457,931
Patrick Henry Mall		279,619		16,741		239,102		—		40,439		140,000		715,901
Phillipsburg Mall		326,552		42,021		112,607		—		95,958				577,138
Plymouth Meeting Mall⁽⁴⁾		253,584		163,161		208,966		—		111,872		214,635		952,218
The Mall at Prince Georges		479,619		139,553		277,571		—		22,032				918,775
South Mall		139,691		120,071		87,179		—		58,258				405,199
Springfield Mall		—		—		195,398		—		26,843		387,899		610,140
Uniontown Mall		391,096		67,996		160,806		30,282		48,812				698,992
Valley Mall		280,549		115,290		243,528		—		34,403		243,400		917,170
Valley View Mall		96,357		74,148		170,140		—		10,798		254,596		606,039
Viewmont Mall		386,262		82,893		153,264		—		4,862		120,000		747,281
Voorhees Town Center⁽⁵⁾		4,404		67,478		126,463		—		113,776		420,838		732,959
Washington Crown Center		245,401		89,086		165,374		—		36,466		140,095		676,422
Willow Grove Park		265,332		54,425		263,348		—		41,007		413,121		1,037,233
Wiregrass Commons		94,686		10,345		173,680		—		27,103		332,152		637,966
Woodland Mall		—		120,959		279,814		—		35,074		725,187		1,161,034
Wyoming Valley Mall		592,110		90,851		200,076		—		28,263				911,300

Total Malls (38 properties)		10,539,641		3,341,763		7,273,914		358,672		1,616,427		5,924,677		29,055,094

Strip and Power Centers
Christiana Center		190,814		68,132		40,233		—		3,600		—		302,779
The Commons at Magnolia		20,631		28,618		34,667		—		20,416		126,200		230,532
Metroplex Shopping Center		67,185		353,984		56,292		—		—		300,729		778,190
The Court at Oxford Valley		59,620		314,149		45,341		—		37,793		247,623		704,526
Paxton Towne Centre		151,627		221,425		71,380		—		—		273,058		717,490
Red Rose Commons		—		248,085		15,206		—		—		199,590		462,881
Springfield Park		83,539		10,000		22,443		—		12,829		145,669		274,480
Whitehall Mall		294,635		192,099		43,891		—		39,920		—		570,545

Total Strip and Power Centers (8 properties)		868,051		1,436,492		329,453		—		114,558		1,292,869		4,041,423

CONSOLIDATED PROPERTIES		10,526,019		3,488,138		6,855,992		358,672		1,580,377		5,728,744		28,537,942
UNCONSOLIDATED PROPERTIES		881,673		1,290,117		747,375		—		150,608		1,488,802		4,558,575
TOTAL PROPERTIES		11,407,692		4,778,255		7,603,367		358,672		1,730,985		7,217,546		33,096,517

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

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

(3)	Additional 23,790 sf has been entitled but not yet built.

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

(5)	Additional 6,554 sf has been built but not commissioned, and 128,514 sf has been entitled but not yet built.

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2012


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 3/31/17 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 Dick’s Sporting Goods jcpenney Sears	11/5/14 1/31/22 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 10/5/26 (1) 7/28/17

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 Burlington Coat Factory Dick’s Sporting Goods jcpenney Macy’s Sears	1/31/17 7/27/16 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	4/19/20 1/31/17 3/31/13 4/30/22 8/2/13

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2012 (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 2/25/18 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 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 Nordstrom Rack Sears	(1) 1/31/28 1/31/22 5/31/22 (1)

Wiregrass Commons Mall Dothan, AL	100%	2003	1986/2008	Belk Burlington Coat Factory Dillard’s 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	1/31/17 4/30/17 1/31/17 8/1/16

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2012 (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.

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method ⁽¹⁾

(in thousands, except per share amounts)


	June 30, 2012									December 31, 2011
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,497,945		$	215,645		$	3,713,590		$	3,470,167		$	211,790		$	3,681,957
Construction in progress		93,333			951			94,284			91,538			864			92,402
Land held for development		15,107			—			15,107			15,292			—			15,292

Total investments in real estate		3,606,385			216,596			3,822,981			3,576,997			212,654			3,789,651
Accumulated depreciation		(906,650	)		(76,895	)		(983,545	)		(844,010	)		(73,594	)		(917,604	)

Net investments in real estate		2,699,735			139,701			2,839,436			2,732,987			139,060			2,872,047

Investments in partnerships, at equity		15,546			(15,546	)		—			16,009			(16,009	)		—
Other assets:
Cash and cash equivalents		14,582			6,360			20,942			21,798			5,683			27,481
Rent and other receivables ⁽²⁾		31,961			1,817			33,778			39,832			2,065			41,897
Intangible assets, net		9,085			141			9,226			9,921			178			10,099
Deferred costs and other assets, net		92,941			15,252			108,193			89,707			15,704			105,411

Total other assets		164,115			8,024			172,139			177,267			7,621			184,888

Total assets	$	2,863,850		$	147,725		$	3,011,575		$	2,910,254		$	146,681		$	3,056,935

LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $112 and $282 as of June 30, 2012 and December 31, 2011, respectively)	$	1,741,841		$	203,183		$	1,945,024		$	1,691,381		$	204,546		$	1,895,927
Exchangeable Notes (net of discount of $849 as of December 31, 2011)		—			—			—			136,051			—			136,051
Term Loans		240,000			—			240,000			240,000			—			240,000
Revolving Facility		65,000			—			65,000			95,000			—			95,000
Tenants’ deposits and deferred rent		14,160			3,152			17,312			13,278			3,492			16,770
Distributions in excess of partnership investments		62,548			(62,548	)		—			64,938			(64,938	)		—
Fair value of derivative instruments		16,836			—			16,836			21,112			—			21,112
Other liabilities		59,740			3,938			63,678			60,456			3,581			64,037

Total liabilities		2,200,125			147,725			2,347,850			2,322,216			146,681			2,468,897

Equity:
Total equity		663,725			—			663,725			588,038			—			588,038

Total liabilities and equity	$	2,863,850		$	147,725		$	3,011,575		$	2,910,254		$	146,681		$	3,056,935

(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 ($25.8 million wholly owned, $2.3 million partnership) as of June 30, 2012 and $27.9 million ($25.5 million wholly owned, $2.4 million partnership) as of December 31, 2011.

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Property Type ⁽¹⁾

(in thousands, except per share amounts)


	June 30, 2012												December 31, 2011
	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	$	3,485,815		$	221,525		$	21,357		$	3,728,697		$	3,454,686		$	221,021		$	21,542		$	3,697,249
Construction in progress		36,952			—			57,332			94,284			36,088			—			56,314			92,402

Total investments in real estate		3,522,767			221,525			78,689			3,822,981			3,490,774			221,021			77,856			3,789,651
Accumulated depreciation		(901,329	)		(80,610	)		(1,606	)		(983,545	)		(838,810	)		(77,292	)		(1,502	)		(917,604	)

Net investments in real estate		2,621,438			140,915			77,083			2,839,436			2,651,964			143,729			76,354			2,872,047

Other assets:
Cash and cash equivalents		16,648			1,970			2,324			20,942			16,947			2,113			8,421			27,481
Rent and other receivables ⁽²⁾		30,203			2,128			1,447			33,778			38,087			2,451			1,359			41,897
Intangible assets, net		2,007			—			7,219			9,226			2,852			—			7,247			10,099
Deferred costs and other assets, net		72,140			14,903			21,150			108,193			67,851			15,309			22,251			105,411

Total other assets		120,998			19,001			32,140			172,139			125,737			19,873			39,278			184,888


Total assets	$	2,742,436		$	159,916		$	109,223		$	3,011,575		$	2,777,701		$	163,602		$	115,632		$	3,056,935

LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $112 and $282 as of June 30, 2012 and December 31, 2011, respectively)	$	1,748,578		$	196,446		$	—		$	1,945,024		$	1,694,476		$	201,451		$	—		$	1,895,927
Exchangeable Notes (net of discount of $849 as of December 31, 2011)		—			—			—			—			—			—			136,051			136,051
Term Loans		—			—			240,000			240,000			—			—			240,000			240,000
Revolving Facility		—			—			65,000			65,000			—			—			95,000			95,000
Tenants’ deposits and deferred rent		15,845			1,295			172			17,312			14,686			1,933			151			16,770
Fair value of derivative instruments		—			—			16,836			16,836			—			—			21,112			21,112
Other liabilities		32,636			1,586			29,456			63,678			33,098			1,687			29,252			64,037

Total liabilities		1,797,059			199,327			351,464			2,347,850			1,742,260			205,071			521,566			2,468,897

Equity:
Total equity		945,377			(39,411	)		(242,241	)		663,725			1,035,441			(41,469	)		(412,269	)		588,038

Total liabilities and equity	$	2,742,436		$	159,916		$	109,223		$	3,011,575		$	2,777,701		$	163,602		$	115,632		$	3,056,935

(1)

(2)	Total includes straight line rent of $28.1 million ($25.8 million wholly owned, $2.3 million partnership) as of June 30, 2012, and $27.9 million ($25.5 million wholly owned, $2.4 million partnership) as of December 31, 2011.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾

(in thousands)


	June 30, 2012								December 31, 2011
	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	$	70,524	$	—	$	23,068	$	47,456	$	70,444	$	—	$	21,550	$	48,894
Capital City Mall		96,394		59		26,683		69,770		96,393		—		25,081		71,312
Chambersburg Mall		38,438		—		9,396		29,042		38,445		—		8,870		29,575
Cherry Hill Mall		453,358		2,593		108,682		347,269		452,603		419		98,194		354,828
Crossroads Mall		45,041		104		10,946		34,199		44,634		873		10,206		35,301
Cumberland Mall		64,544		6		11,971		52,579		63,595		671		10,982		53,284
Dartmouth Mall		63,367		—		29,445		33,922		63,105		—		28,511		34,594
Exton Square Mall		149,807		72		31,659		118,220		148,948		72		29,903		119,117
Francis Scott Key Mall		78,661		24		20,831		57,854		78,340		—		19,395		58,945
Gadsden Mall		62,793		—		12,783		50,010		62,336		—		11,820		50,516
The Gallery at Market East		170,058		15,287		31,270		154,075		170,032		4,479		27,437		147,074
Jacksonville Mall		80,723		—		20,091		60,632		80,042		—		18,701		61,341
Logan Valley Mall		96,703		—		25,929		70,774		96,326		—		24,777		71,549
Lycoming Mall		77,701		—		19,734		57,967		77,566		—		18,451		59,115
Magnolia Mall		88,963		7		28,822		60,148		88,770		33		27,121		61,682
Moorestown Mall		93,298		414		29,707		64,005		93,291		104		28,194		65,201
New River Valley Mall		58,210		—		20,027		38,183		58,142		—		18,501		39,641
Nittany Mall		44,161		—		11,006		33,155		44,327		—		10,372		33,955
North Hanover Mall		27,284		1,031		5,748		22,567		27,219		101		5,092		22,228
Orlando Fashion Square		43,286		—		8,891		34,395		43,226		—		7,550		35,676
Palmer Park Mall		34,541		—		13,305		21,236		34,529		—		12,912		21,617
Patrick Henry Mall		142,593		—		40,716		101,877		142,469		—		37,953		104,516
Phillipsburg Mall		19,702		—		5,186		14,516		19,714		—		4,760		14,954
Plymouth Meeting Mall		162,803		863		37,441		126,225		161,328		7		34,397		126,938
The Mall at Prince Georges		101,601		—		38,083		63,518		101,522		—		36,338		65,184
South Mall		34,217		1,358		7,343		28,232		34,196		—		6,924		27,272
Uniontown Mall		41,053		—		11,864		29,189		40,827		—		11,156		29,671
Valley Mall		93,432		—		24,815		68,617		92,966		—		23,494		69,472
Valley View Mall		68,150		—		15,542		52,608		67,930		—		14,699		53,231
Viewmont Mall		91,624		—		22,095		69,529		91,330		—		20,588		70,742
Voorhees Town Center		89,393		1,038		20,130		70,301		88,473		808		17,680		71,601
Washington Crown Center		40,443		—		13,986		26,457		40,432		—		13,594		26,838
Willow Grove Park		212,189		13,886		54,591		171,484		195,841		28,385		51,600		172,626
Wiregrass Commons Mall		53,640		—		11,899		41,741		53,629		—		10,964		42,665
Woodland Mall		187,258		—		37,090		150,168		185,681		—		34,139		151,542
Wyoming Valley Mall		108,742		—		28,095		80,647		108,721		—		26,112		82,609

Total Consolidated Malls		3,384,695		36,742		868,870		2,552,567		3,357,372		35,952		808,018		2,585,306

Unconsolidated Malls
Lehigh Valley Mall		45,247		138		19,772		25,613		41,648		130		18,960		22,818
Springfield Mall		55,873		72		12,687		43,258		55,666		6		11,832		43,840

Total Unconsolidated Malls		101,120		210		32,459		68,871		97,314		136		30,792		66,658

TOTAL MALLS	$	3,485,815	$	36,952	$	901,329	$	2,621,438	$	3,454,686	$	36,088	$	838,810	$	2,651,964

(1)

Pennsylvania Real Estate Investment Trust

Investment in Real Estate ⁽¹⁾ (continued)

(in thousands)


	June 30, 2012								December 31, 2011
	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	$	42,685	$	—	$	14,189	$	28,496	$	42,681	$	—	$	13,552	$	29,129
The Commons at Magnolia		12,677		—		4,064		8,613		12,677		—		3,835		8,842
Paxton Towne Centre		57,888		—		19,527		38,361		57,437		—		18,605		38,832

Total Consolidated Strip and Power Centers		113,250		—		37,780		75,470		112,795		—		35,992		76,803

Unconsolidated Strip and Power Centers
Metroplex Shopping Center		42,840		—		18,100		24,740		42,791		—		17,289		25,502
The Court at Oxford Valley		27,908		—		9,469		18,439		27,908		—		9,217		18,691
Red Rose Commons		13,617		—		4,472		9,145		13,617		—		4,294		9,323
Springfield Park		7,194		—		1,762		5,432		7,194		—		1,686		5,508
Whitehall Mall		16,716		—		9,027		7,689		16,716		—		8,814		7,902

Total Unconsolidated Strip and Power Centers		108,275		—		42,830		65,445		108,226		—		41,300		66,926

TOTAL STRIP AND POWER CENTERS	$	221,525	$	—	$	80,610	$	140,915	$	221,021	$	—	$	77,292	$	143,729

Consolidated Properties Under Development
Springhills	$	—	$	21,961	$	—	$	21,961	$	—	$	22,004	$	—	$	22,004
White Clay Point		—		34,630		—		34,630		—		33,582		—		33,582

Total Consolidated Properties Under Development		—		56,591		—		56,591		—		55,586		—		55,586

Unconsolidated Properties Under Development
Pavilion at Market East		6,250		741		1,606		5,385		6,250		728		1,502		5,476

Total Unconsolidated Properties Under Development		6,250		741		1,606		5,385		6,250		728		1,502		5,476

Other Properties
Land held for development - consolidated		15,107		—		—		15,107		15,292		—		—		15,292

Total Other Properties		15,107		—		—		15,107		15,292		—		—		15,292

TOTAL DEVELOPMENT AND OTHER	$	21,357	$	57,332	$	1,606	$	77,083	$	21,542	$	56,314	$	1,502	$	76,354

TOTAL INVESTMENT IN REAL ESTATE	$	3,728,697	$	94,284	$	983,545	$	2,839,436	$	3,697,249	$	92,402	$	917,604	$	2,872,047

CONSOLIDATED PROPERTIES	$	3,513,052	$	93,333	$	906,650	$	2,699,735	$	3,485,459	$	91,538	$	844,010	$	2,732,987

UNCONSOLIDATED PROPERTIES		215,645		951		76,895		139,701		211,790		864		73,594		139,060

TOTAL INVESTMENT IN REAL ESTATE	$	3,728,697	$	94,284	$	983,545	$	2,839,436	$	3,697,249	$	92,402	$	917,604	$	2,872,047

(1)

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)


	Quarter Ended June 30, 2012						Six Months Ended June 30, 2012
	Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated		Total
Redevelopment projects with incremental GLA and/or anchor replacement ⁽¹⁾	$	12,808	$	145	$	12,953	$	19,415	$	74	$	19,489
New development projects		634		14		648		1,049		14		1,063
Tenant allowances		6,131		182		6,313		8,048		197		8,245
Recurring capital expenditures:
CAM expenditures		1,458		106		1,564		1,574		205		1,779
Non-CAM expenditures		199		—		199		218		—		218

Total recurring capital expenditures		1,657		106		1,763		1,792		205		1,997

Total	$	21,230	$	447	$	21,677	$	30,304	$	490	$	30,794

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

Pennsylvania Real Estate Investment Trust

Debt Analysis as of June 30, 2012

(in thousands)


	Outstanding Debt
	Fixed Rate ⁽¹⁾			% of Total Indebtedness			Variable Rate			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable ⁽²⁾	$	1,732,350			77.0	%	$	9,491			0.4	%	$	1,741,841			77.4	%
Unconsolidated mortgage loans payable		199,473			8.9	%		3,710			0.2	%		203,183			9.1	%
2010 Credit Facility ⁽³⁾		190,000			8.4	%		115,000			5.1	%		305,000			13.5	%

TOTAL OUTSTANDING DEBT	$	2,121,823			94.3	%	$	128,201			5.7	%	$	2,250,024			100.0	%

AVERAGE STATED INTEREST RATE		5.74	%					4.09	%					5.65	%

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

(3)	Includes debt premium of $112

(5)

As of June 30, 2012, for presentation purposes, we have designated interest rate swap agreements to effectively fix $190.0 million of the underlying LIBOR associated with the 2010 Credit Facility until March 10, 2013 at a current weighted average rate of 1.83% (excluding the spread on the related debt). Of that notional amount, $185.0 million of this $190.0 million is also covered by a forward starting swap that became effective on April 2, 2012 and remains effective until March 13, 2013 at a rate of 2.96%, excluding the spread on the related debt. Additionally, $15.4 million was subject to a LIBOR cap with a strike price of 2.50% which expired in April 2012.


		Average Debt Balance
					2010 Credit Facility
		Mortgage Debt ⁽¹⁾			Revolving Facility		Term Loans		Exchangeable Notes			Exchangeable Notes Discount			TOTAL
Beginning Balance	3/31/2012	$	1,955,390		$	30,000	$	240,000	$	136,900		$	(342	)	$	2,361,948
Mortgage loan amortization ⁽²⁾			(6,366	)		—		—		—			—			(6,366	)
Paxton Towne Centre mortgage paydown			(4,000	)		—		—		—			—			(4,000	)
Credit Facility, net			—			35,000		—		—			—			35,000
Exchangeable notes repayment			—			—		—		(136,900	)		—			(136,900	)
Exchangeable notes discount amortization			—			—		—		—			342			342

Ending Balance	6/30/2012	$	1,945,024		$	65,000	$	240,000	$	—		$	—		$	2,250,024

Weighted Average Balance		$	1,950,636		$	28,022	$	240,000	$	93,273		$	(171	)	$	2,311,760

(1)	Includes debt premium.

(2)	Includes the amortization of debt premium.


	Debt Maturities ⁽¹⁾
							2010 Credit Facility
Year	Scheduled Amortization		Debt Premium Amortization		Mortgage Balance at Maturity		Revolving Facility		Term Loans		Total Debt
2012	$	11,037	$	112	$	317,439	$	—	$	—	$	328,588
2013		18,599		—		447,723		—		—		466,322
2014		17,199		—		99,203		65,000		240,000		421,402
2015		16,375		—		305,896		—		—		322,271
2016		6,237		—		243,745		—		—		249,982
2017		5,118		—		150,000		—		—		155,118
Thereafter		19,346		—		286,995		—		—		306,341

	$	93,911	$	112	$	1,851,001	$	65,000	$	240,000	$	2,250,024

(1)	The weighted average period to mortgage maturity is 3.65 years, excluding extension options. Excludes debt premium on mortgage loans. 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
2012	$	318,888		5.27	%	$	318,888		5.14	%
2013		450,463		5.28	%		450,463		5.28	%
2014		101,656		7.28	%		101,656		7.28	%
2015		330,911		5.69	%		330,911		5.69	%
2016		261,827		5.36	%		261,827		5.36	%
2017		150,000		5.51	%		150,000		5.51	%
Thereafter		331,167		5.95	%		331,167		5.95	%

Total	$	1,944,912		5.60	%	$	1,944,912		5.57	%

⁽¹⁾	Excludes amortization of debt issuance costs.

Pennsylvania Real Estate Investment Trust

Debt Schedule as of June 30, 2012

(in thousands)


	Proportionate Share ⁽¹⁾									Marked to Market Interest Rate (GAAP)
	Debt		Debt Premium/ (Discount)		Total		Interest Rate			Marked to Market Interest Rate (GAAP)			Annual Debt Service		Balance at Maturity		Initial Maturity Date		Fully Extended Maturity Date
Fixed Rate Mortgage Loans
Christiana Center ^(2)(3)(4)	$	40,000	$	—	$	40,000		3.67	%		3.67	%	$	1,467	$	40,000		June 2012		June 2013
Cherry Hill Mall		178,649		—		178,649		5.42	%		5.42	%		13,510		177,689		Oct 2012		Oct 2012
Cherry Hill Mall Supplemental Loan		53,209		—		53,209		5.51	%		5.51	%		3,030		53,003		Oct 2012		Oct 2012
Cumberland Mall Loan #1		39,062		112		39,174		6.50	%		5.40	%		3,413		38,782		Nov 2012		Nov 2012
Dartmouth Mall		59,023		—		59,023		4.95	%		4.95	%		4,484		57,594		June 2013		June 2013
Moorestown Mall		54,175		—		54,175		4.95	%		4.95	%		4,115		52,864		June 2013		June 2013
Paxton Towne Centre ^(2)(3)(5)		50,000		—		50,000		4.10	%		4.10	%		2,052		50,000		July 2013		July 2013
Jacksonville Mall ⁽²⁾		56,265		—		56,265		5.83	%		5.83	%		3,277		56,265		Sept 2013		Sept 2015
Logan Valley Mall ⁽²⁾		63,000		—		63,000		5.79	%		5.79	%		3,649		63,000		Sept 2013		Sept 2015
Wyoming Valley Mall ⁽²⁾		65,000		—		65,000		5.85	%		5.85	%		3,803		65,000		Sept 2013		Sept 2015
Francis Scott Key Mall ⁽²⁾		55,000		—		55,000		5.25	%		5.25	%		2,885		55,000		Dec 2013		Dec 2013
Viewmont Mall ⁽²⁾		48,000		—		48,000		5.25	%		5.25	%		2,518		48,000		Dec 2013		Dec 2013
Exton Square Mall		67,790		—		67,790		7.50	%		7.50	%		5,873		66,733		Jan 2014		Jan 2014
Lycoming Mall		33,866		—		33,866		6.84	%		6.84	%		3,001		32,470		Jul 2014		Jul 2014
Springfield East ⁽²⁾		2,204		—		2,204		5.39	%		5.39	%		92		2,061		Mar 2015		Mar 2020
Springfield Park ⁽²⁾		2,588		—		2,588		5.39	%		5.39	%		108		2,419		Mar 2015		Mar 2020
Magnolia Mall		58,951		—		58,951		5.33	%		5.33	%		4,413		54,842		July 2015		July 2015
Patrick Henry Mall		90,441		—		90,441		6.34	%		6.34	%		7,743		83,210		Oct 2015		Oct 2015
Springfield Mall ⁽²⁾		32,726		—		32,726		4.77	%		4.77	%		2,118		30,740		Nov 2015		Nov 2015
Willow Grove Park		144,001		—		144,001		5.65	%		5.65	%		11,083		132,624		Dec 2015		Dec 2015
Valley Mall		84,696		—		84,696		5.49	%		5.49	%		5,014		78,996		Mar 2016		Mar 2016
Woodland Mall		149,948		—		149,948		5.58	%		5.58	%		10,760		140,484		Apr 2016		Apr 2016
801 Market Street ⁽²⁾⁽³⁾		25,000		—		25,000		3.84	%		3.84	%		960		24,265		Jul 2016		Jul 2018
The Mall at Prince Georges		150,000		—		150,000		5.51	%		5.51	%		8,269		150,000		June 2017		June 2017
Whitehall Mall		5,597		—		5,597		7.00	%		7.00	%		574		4,145		Nov 2018		Nov 2018
Cumberland Mall Loan #2		2,100		—		2,100		5.00	%		5.00	%		390		—		Dec 2018		Dec 2018
New River Valley Mall ⁽²⁾⁽³⁾		25,000		—		25,000		4.83	%		4.83	%		1,208		25,000		Jan 2019		Jan 2019
Valley View Mall		31,244		—		31,244		5.95	%		5.95	%		2,290		27,161		July 2020		July 2020
Lehigh Valley Mall		68,269		—		68,269		5.88	%		5.88	%		4,972		58,519		July 2020		July 2020
Red Rose Commons		14,766		—		14,766		5.14	%		5.14	%		978		12,379		July 2021		July 2021
The Court at Oxford Valley		30,000		—		30,000		5.56	%		5.56	%		1,668		25,782		July 2021		July 2021
Capital City Mall		65,544		—		65,544		5.30	%		5.30	%		4,379		54,715		Mar 2022		Mar 2022
Metroplex Shopping Center		43,323		—		43,323		5.00	%		5.00	%		2,681		33,978		Oct 2023		Oct 2023
Beaver Valley Mall ⁽⁶⁾		42,274		—		42,274		9.36	%		9.36	%		3,972		42,266		Apr 2032		Apr 2032

Total Fixed Rate Mortgage Loans		1,931,711		112		1,931,823		5.62	%		5.59	%		130,748		1,839,986

Variable Rate Mortgage Loans
Christiana Center		4,258		—		4,258		2.09	%		2.09	%		860		4,257		June 2012		June 2013
Pavilion East Associates⁽⁷⁾		3,710		—		3,710		2.99	%		2.99	%		200		3,708		Aug 2012		Aug 2012
801 Market Street		2,183		—		2,183		2.34	%		2.34	%		685		—		Jul 2016		Jul 2018
New River Valley Mall		3,050		—		3,050		3.25	%		3.25	%		99		3,050		Jan 2019		Jan 2019

Total Variable Rate Mortgage Loans		13,201		—		13,201		2.65	%		2.65	%		1,844		11,015

Total Mortgage Loans	$	1,944,912	$	112	$	1,945,024		5.60	%		5.57	%	$	132,593	$	1,851,001

CONSOLIDATED MORTGAGE LOANS	$	1,741,729	$	112	$	1,741,841		5.63	%		5.60	%	$	119,202	$	1,677,270
UNCONSOLIDATED MORTGAGE LOANS		203,183		—		203,183		5.38	%		5.38	%		13,391		173,731
2010 CREDIT FACILITY—FIXED RATE^(8)(9)(10)		190,000		—		190,000		6.97	%		6.97	%		13,251		190,000		Mar 2014		Mar 2015
2010 CREDIT FACILITY—VARIABLE RATE⁽⁸⁾⁽⁹⁾		115,000		—		115,000		4.25	%		4.25	%		4,888		115,000		Mar 2014		Mar 2015

Total	$	2,249,912	$	112	$	2,250,024		5.65	%		5.63	%	$	150,731	$	2,156,001

AMORTIZATION OF DEFERRED FINANCING FEES		—		—		—		—			0.40	%		—		—

EFFECTIVE INTEREST RATE	$	2,249,912	$	112	$	2,250,024		5.65	%		6.03	%	$	150,731	$	2,156,001

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

(2)	All or a portion of the mortgage loan has been effectively swapped to the fixed interest rate presented.

(3)	A portion of the mortgage loan bears interest at a variable rate. See Variable Rate Mortgage Loans section of this table

(4)	In July 2012, the Company refinanced this mortgage. The new maturity date is August 2022.

(5)	The Company made a $4.0 million paydown on this mortgage in May 2012.

(6)	This mortgage loan has passed its Anticipated Repayment Date. The final maturity date is April 2032.

(7)	In July 2012, the unconsolidated partnership that owns this property refinanced this mortgage. The new maturity date is August 2017.

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

(9)	The 2010 Credit Facility consists of the 2010 Term Loan, with a balance of $240,000 and the Revolving Facility, with a balance of $65,000 as of June 30, 2012. The total available to borrow against the Revolving Facility is $185,000.

(10)

As of June 30, 2012, for presentation purposes, we have designated interest rate swap agreements to effectively fix $190,000 of the underlying LIBOR associated with the 2010 Credit Facility until March 10, 2013 at a current weighted average rate of 1.83% (excluding the spread on the related debt). Of that notional amount, $185,000 of this $190,000 is also covered by a forward starting swap that became effective on April 2, 2012 and remains effective until March 13, 2013 at a rate of 2.96%, excluding the spread on the related debt. Additionally, $15.4 million was subject to a LIBOR cap with a strike price of 2.50% which expired in April 2012.

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios ⁽¹⁾


	June 30, 2012			March 31, 2012			December 31, 2011
Consolidated Liabilities to Gross Asset Value		63.21	%		66.18	%		66.87	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 70%
EBITDA to Interest Expense		1.99			1.94			1.91
EBITDA may not be less than 1.60 to 1.00
Adjusted EBITDA to Fixed Charges		1.63			1.62			1.60
Adjusted EBITDA may not be less than 1.35 to 1.00
Corporate Debt Yield		11.64	%		11.06	%		11.00	%
The ratio of EBITDA to total indebtedness may not be less than 9.50%.
Facility Debt Yield		16.35	%		22.38	%		15.97	%
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%.

Pennsylvania Real Estate Investment Trust

Shareholder Information


Ten Largest Institutional Shareholders:

Common Shares Held ⁽¹⁾
The Vanguard Group, Inc.	6,097,536
BlackRock Fund Advisors	4,449,718
Dreman Value Management LLC	2,562,071
State Street Global Advisors	1,829,490
Deutsche Investment Management Americas, Inc.	1,752,265
Pacific Heights Asset Management LLC	1,500,000
JPMorgan Asset Management, Inc.	1,343,377
Northern Trust Investments	1,280,774
Brookfield Investment Management, Inc.	1,071,905
Mellon Capital Management Corp.	853,569

*TOTAL of Ten Largest Institutional:*	22,740,705
*TOTAL of all Institutional Holders:*	40,184,267
*Ten Largest as % of Total Institutional:*	56.6	%

(1)	Based on 13F and 13G filings as of June 30, 2012 or most recent filings.


Breakdown of Share & Unit Ownership:
Shares Held	Most Recent		% of Outstanding			December 31, 2011
Institutional ⁽¹⁾		40,184,267		69.0	%		38,394,134
Retail ⁽²⁾		13,143,824		22.5	%		14,547,505
Insiders ⁽³⁾		4,982,000		8.5	%		5,064,204

*TOTAL*		58,310,091		100.0	%		58,005,843

(1)	Based on 13F and 13G filings as of June 30, 2012 or most recent filings.

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

(3)	Insider holdings as of April 23, 2012 (Shares and OP Units only). See proxy statement dated May 31, 2012 for more details.

Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations (“FFO”), which is a non-GAAP measure commonly used by REITs, as net income excluding gains and losses on sales of operating properties (computed in accordance with GAAP), plus real estate depreciation and amortization; and after adjustments for unconsolidated partnerships and joint ventures to reflect funds from operations on the same basis. We compute 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 we do. In 2011, NAREIT reiterated its established guidance that excluding impairment write downs of depreciable real estate is consistent with the NAREIT definition.

We use FFO and FFO per diluted share and unit of limited partnership interest in our operating partnership (“OP Unit”) in measuring our performance against our peers and as one of the performance measures for determining incentive compensation amounts earned under certain of our performance-based executive compensation programs. FFO is a commonly used measure of operating performance and profitability among REITs, and we use FFO and FFO per diluted share and OP Unit as supplemental non-GAAP measures to compare our performance for different periods to that of our industry peers.

FFO does not include gains and losses on sales 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 NOI. 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 our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that net income is the most directly comparable GAAP measurement to FFO.

We also present Funds From Operations, as adjusted, and Funds From Operations per diluted share and OP Unit, as adjusted, which are non-GAAP measures, for the three and six months ended June 30, 2012 and 2011 to show the effect of the provision for executive separation expense, which had a significant effect on our results of operations, but is not, in our opinion, indicative of our operating performance.

We believe that FFO is helpful to management and investors as a measure of operating performance because it excludes various items included in net income that do not relate to or are not indicative of operating performance, such as gains on sales of operating real estate and depreciation and amortization of real estate, among others. We believe that Funds From Operations, as adjusted, is helpful to management and investors as a measure of operating performance because it adjusts FFO to exclude items that management does not believe are indicative of its operating performance, such as provision for executive separation expense.

Net Operating Income (NOI)

NOI (a non-GAAP measure) is derived from real estate revenue (determined in accordance with generally accepted accounting principles, or GAAP, including lease termination revenue) minus operating expenses (determined in accordance with GAAP), plus our share of revenue and operating expenses of our partnership investments, and includes real estate revenue and operating expenses from properties included in discontinued operations, if any. 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 our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. It is not indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that NOI is helpful to management and investors as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. We believe that net income is the most directly comparable GAAP measurement to NOI.

NOI excludes interest and other income, general and administrative expenses, interest expense, depreciation and amortization, gains on sales of interests in real estate, gains on 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.

We believe that net income is the most directly comparable GAAP measurement to FAD. We believe FAD provides a meaningful indicator of its ability to fund cash needs and to make cash distributions to equity owners. In addition, we believe 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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