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

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Exhibit 99.1

Pennsylvania Real Estate Investment Trust^®

LOGO

Supplemental Financial and Operating Information

Quarter Ended December 31, 2011

www.preit.com

NYSE: PEI

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

December 31, 2011

Table of Contents


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

*Operating Results*
Statement of Operations - Proportionate Consolidation Method - Quarters Ended December 31, 2011 and December 31, 2010			4
Statement of Operations - Proportionate Consolidation Method - Years Ended December 31, 2011 and December 31, 2010			5
Net Operating Income - Quarters Ended December 31, 2011 and December 31, 2010			6
Net Operating Income - Years Ended December 31, 2011 and December 31, 2010			7
Computation of Earnings Per Share			8
Funds From Operations and Funds Available for Distribution - Quarters Ended December 31, 2011 and December 31, 2010			9
Funds From Operations and Funds Available for Distribution - Years Ended December 31, 2011 and December 31, 2010			10

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

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

FORWARD-LOOKING STATEMENTS

This Quarterly Supplemental and Operating Information contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect PREIT’s current views, 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 for the year ended December 31, 2010. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

Pennsylvania Real Estate Investment Trust

Company Information

Background

Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls. As of December 31, 2011 the Company’s 49 properties included 38 shopping malls, eight strip and power centers, and three development properties. These properties are located in 13 states in the eastern half of the United States, primarily in the Mid-Atlantic region. The operating retail properties have a total of approximately 33.1 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

Reporting Calendar


First Quarter 2012		April 26, 2012


Research Coverage


Company	Analyst	Phone Number

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

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

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

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

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

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

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

Page 1

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

February 17, 2012 - PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.

January 17, 2012 - PREIT announced the tax status of its 2011 distributions.

October 20, 2011 - PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.15 per common share.

Acquisitions, dispositions, development and redevelopment activities:

February 9, 2012 - PREIT announced an agreement with Mercy Health System to add a 23,500 sf health and wellness satellite location aligned with Mercy Suburban Hospital at Plymouth Meeting Mall in Plymouth Meeting, Pennsylvania.

January 31, 2012 - PREIT announced an agreement with jcpenney to relocate and expand its anchor store at North Hanover Mall in Hanover, Pennsylvania.

December 28, 2011 - PREIT announced it signed Philadelphia Media Network, Inc., owner of The Philadelphia Inquirer, Daily News, and Philly.com, to a 125,000 sf office space at 801 Market Street in Philadelphia, Pennsylvania.

December 22, 2011 - PREIT announced it signed a 12 screen, 56,000 sf Regal Premium Experience movie theater at the Moorestown Mall in Moorestown, New Jersey.

December 19, 2011 - PREIT announced it signed a 12,000 sf lease with Charming Charlie at Plymouth Meeting Mall in Plymouth Meeting, Pennsylvania.

Other activities:

January 26, 2012 - PREIT scheduled its Fourth Quarter 2011 earnings call for Thursday, February 23, 2012.

November 16, 2011 - PREIT announced its 2011 holiday promotion.

November 15, 2011 - PREIT announced the commencement of a multi-faceted repositioning of Moorestown Mall in Moorestown, New Jersey.

October 27, 2011 - PREIT reported its Third Quarter 2011 results.

October 13, 2011 - PREIT scheduled its Third Quarter 2011 earnings call for Thursday, October 27, 2011.

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

Page 2

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands, except per share amounts)


	Quarter Ended December 31,						Year Ended December 31,
	2011			2010			2011			2010			2009
TRADING INFORMATION
High Price per share	$	11.00		$	15.93		$	17.34		$	17.35		$	9.13
Low Price per share	$	6.50		$	11.58		$	6.50		$	8.35		$	2.20
Closing Share Price (at the end of period)	$	10.44		$	14.53		$	10.44		$	14.53		$	8.46

MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding		55,677			55,436			55,677			55,436			44,615
OP Units Outstanding		2,329			2,329			2,329			2,329			2,329

Total Shares and OP Units Outstanding		58,006			57,765			58,006			57,765			46,944


Equity Market Capitalization - Shares and OP Units	$	605,581		$	839,327		$	605,581		$	839,327		$	397,148

DEBT CAPITALIZATION⁽¹⁾
Secured Debt Balance⁽²⁾	$	2,230,645		$	2,265,572		$	2,230,645		$	2,265,572		$	1,956,193
Unsecured Debt Balance⁽³⁾⁽⁴⁾		136,900			136,900			136,900			136,900			792,900

Debt Capitalization		2,367,545			2,402,472			2,367,545			2,402,472			2,749,093


TOTAL MARKET CAPITALIZATION	$	2,973,126		$	3,241,799		$	2,973,126		$	3,241,799		$	3,146,241


*Equity Capitalization/Total Market Capitalization*		20.4	%		25.9	%		20.4	%		25.9	%		12.6	%
*Debt Capitalization/Total Market Capitalization*		79.6	%		74.1	%		79.6	%		74.1	%		87.4	%
*Unsecured Debt Balance/Total Debt*		5.8	%		5.7	%		5.8	%		5.7	%		28.8	%

DISTRIBUTIONS PER COMMON SHARE

Ordinary Dividends	$	0.04		$	0.15		$	0.37		$	0.60		$	0.63
Capital Gain Distributions⁽⁵⁾		—			—			0.01			—			0.11
Non-Taxable Distributions		0.11			—			0.22			—			—

Distributions per share	$	0.15		$	0.15		$	0.60		$	0.60		$	0.74


Annualized Dividend Yield⁽⁶⁾		5.7	%		4.1	%		5.7	%		4.1	%		8.7	%

CAPITAL RESOURCES

Cash and Cash Equivalents	$	27,481		$	47,107		$	27,481		$	47,107		$	77,147

Revolving Facility		250,000			150,000			250,000			150,000			500,000
Amount Outstanding		(95,000	)		—			(95,000	)		—			(486,000	)
Letters of Credit		—			(1,534	)		—			(1,534	)		(3,030	)

Available Revolving Facility⁽⁷⁾		155,000			148,466			155,000			148,466			10,970

TOTAL	$	182,481		$	195,573		$	182,481		$	195,573		$	88,117


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

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

⁽²⁾	The secured debt balance includes $240,000 in Term Loans and $95,000 outstanding under the Revolving Facility as of December 31, 2011.

⁽³⁾	The unsecured debt balance includes exchangeable notes of $136,900 for all periods presented.

⁽⁴⁾	The unsecured debt balance included $170,000 in the senior unsecured 2008 Term Loan and $486,000 in outstanding Credit Facility borrowings for the year ended December 31, 2009.

⁽⁵⁾	Includes $.004 of unrecaptured Section 1250 gain as of December 31, 2011.

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

⁽⁷⁾	The available Credit Facility borrowings are subject to covenants that may restrict amounts that can be borrowed.

Page 3

Pennsylvania Real Estate Investment Trust

Statement of Operations - Quarters Ended December 31, 2011 and December 31, 2010

Proportionate Consolidation Method

(in thousands)


	Quarter Ended December 31, 2011									Quarter Ended December 31, 2010
	GAAP			Share of unconsolidated partnership⁽¹⁾			Total			GAAP			Share of unconsolidated partnerships⁽¹⁾			Total
REVENUE:

Base rent	$	78,856		$	6,680		$	85,536		$	78,944		$	6,527		$	85,471
Expense reimbursements		32,379			2,730			35,109			31,897			2,659			34,556
Percentage rent		3,993			86			4,079			3,292			74			3,366
Lease termination revenue		997			24			1,021			478			—			478
Other real estate revenue		6,907			455			7,362			6,473			540			7,013

Real estate revenue		123,132			9,975			133,107			121,084			9,800			130,884
Interest and other income		1,004			—			1,004			1,145			—			1,145

Total revenue		124,136			9,975			134,111			122,229			9,800			132,029


EXPENSES:
Operating expenses:
CAM and real estate taxes		(36,415	)		(2,057	)		(38,472	)		(35,583	)		(2,049	)		(37,632	)
Utilities		(5,634	)		(225	)		(5,859	)		(5,978	)		(219	)		(6,197	)
Other operating expenses		(7,426	)		(635	)		(8,061	)		(7,413	)		(684	)		(8,097	)

Total operating expenses		(49,475	)		(2,917	)		(52,392	)		(48,974	)		(2,952	)		(51,926	)

Depreciation and amortization		(34,625	)		(2,209	)		(36,834	)		(38,915	)		(2,074	)		(40,989	)
Other expenses:
General and administrative expenses		(10,390	)		—			(10,390	)		(10,712	)		—			(10,712	)
Project costs and other expenses		(532	)		—			(532	)		(125	)		—			(125	)

Total other expenses		(10,922	)		—			(10,922	)		(10,837	)		—			(10,837	)

Interest expense, net⁽²⁾		(31,855	)		(2,828	)		(34,683	)		(34,142	)		(2,617	)		(36,759	)

Total expenses		(126,877	)		(7,954	)		(134,831	)		(132,868	)		(7,643	)		(140,511	)

Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate		(2,741	)		2,021			(720	)		(10,639	)		2,157			(8,482	)
Equity in income of partnerships		2,021			(2,021	)		—			2,157			(2,157	)		—
Gains on sales of non-operating real estate		140			—			140			—			—			—

Loss from continuing operations		(580	)		—			(580	)		(8,482	)		—			(8,482	)
Discontinued operations:
Adjustment to gains on sales of discontinued operations		—			—			—			(56	)		—			(56	)

Loss from discontinued operations		—			—			—			(56	)		—			(56	)

Net loss		(580	)		—			(580	)		(8,538	)		—			(8,538	)
Less: net loss attributable to noncontrolling interest		23			—			23			507			—			507

Net loss attributable to PREIT	$	(557	)	$	—		$	(557	)	$	(8,031	)	$	—		$	(8,031	)

⁽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 $589 and $602 for the quarters ended December 31, 2011 and 2010, respectively.

Page 4

Pennsylvania Real Estate Investment Trust

Statement of Operations - Years Ended December 31, 2011 and December 31, 2010

Proportionate Consolidation Method

(in thousands)


	Year Ended December 31, 2011											Year Ended December 31, 2010
	GAAP			Share of unconsolidated partnerships⁽¹⁾			Discontinued operations		Total			GAAP			Share of unconsolidated partnerships⁽¹⁾			Discontinued operations			Total
REVENUE:

Base rent	$	293,345		$	25,822		$	—	$	319,167		$	293,640		$	25,663		$	7,739		$	327,042
Expense reimbursements		131,093			10,365			—		141,458			131,877			10,568			1,750			144,195
Percentage rent		6,494			164			—		6,658			5,585			136			—			5,721
Lease termination revenue		1,859			78			—		1,937			3,028			275			—			3,303
Other real estate revenue		17,057			1,405			—		18,462			16,235			1,450			8			17,693

Real estate revenue		449,848			37,834			—		487,682			450,365			38,092			9,497			497,954
Interest and other income		6,712			—			—		6,712			5,276			—			—			5,276

Total revenue		456,560			37,834			—		494,394			455,641			38,092			9,497			503,230


EXPENSES:
Operating expenses:
CAM and real estate taxes		(144,427	)		(8,316	)		—		(152,743	)		(142,767	)		(8,361	)		(1,904	)		(153,032	)
Utilities		(24,530	)		(862	)		—		(25,392	)		(26,030	)		(908	)		(7	)		(26,945	)
Other operating expenses		(24,876	)		(2,277	)		—		(27,153	)		(26,476	)		(2,498	)		(196	)		(29,170	)

Total operating expenses		(193,833	)		(11,455	)		—		(205,288	)		(195,273	)		(11,767	)		(2,107	)		(209,147	)

Depreciation and amortization		(140,430	)		(8,403	)		—		(148,833	)		(161,592	)		(8,656	)		(3,907	)		(174,155	)
Other expenses:
General and administrative expenses		(38,901	)		—			—		(38,901	)		(38,973	)		—			—			(38,973	)
Impairment of assets		(52,336	)		—			—		(52,336	)		—			—			—			—
Project costs and other expenses		(964	)		—			—		(964	)		(1,137	)		—			—			(1,137	)

Total other expenses		(92,201	)		—			—		(92,201	)		(40,110	)		—			—			(40,110	)

Interest expense, net⁽²⁾		(132,256	)		(11,341	)		—		(143,597	)		(142,730	)		(8,619	)		(1,926	)		(153,275	)

Total expenses		(558,720	)		(31,199	)		—		(589,919	)		(539,705	)		(29,042	)		(7,940	)		(576,687	)

Loss before equity in income of partnerships, discontinued operations and gains on sales of real estate		(102,160	)		6,635			—		(95,525	)		(84,064	)		9,050			1,557			(73,457	)
Equity in income of partnerships		6,635			(6,635	)		—		—			9,050			(9,050	)		—			—
Gains on sales of real estate		1,590			—			—		1,590			—			—			—			—

Loss from continuing operations		(93,935	)		—			—		(93,935	)		(75,014	)		—			1,557			(73,457	)
Discontinued operations
Operating results from discontinued operations		—			—			—		—			1,557			—			(1,557	)		—
Gains on sales of discontinued operations		—			—			—		—			19,094			—			—			19,094

Income from discontinued operations		—			—			—		—			20,651			—			(1,557	)		19,094

Net loss		(93,935	)		—			—		(93,935	)		(54,363	)		—			—			(54,363	)
Less: net loss attributable to noncontrolling interests		3,774			—			—		3,774			2,436			—			—			2,436

Net loss attributable to PREIT	$	(90,161	)	$	—		$	—	$	(90,161	)	$	(51,927	)	$	—		$	—		$	(51,927	)

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

⁽²⁾	Net of capitalized interest expense of $2,032 and $2,561 for the years ended December 31, 2011 and 2010, respectively.

Page 5

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Quarters Ended December 31, 2011 and 2010

(in thousands)


	Quarter Ended December 31, 2011									Quarter Ended December 31, 2010
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total

Real estate revenue:
Base rent	$	85,176		$	360		$	85,536		$	85,083		$	388		$	85,471
Expense reimbursements		35,101			8			35,109			34,544			12			34,556
Percentage rent		4,079			—			4,079			3,366			—			3,366
Lease termination revenue		1,021			—			1,021			478			—			478
Other real estate revenue		7,240			122			7,362			6,890			123			7,013

TOTAL REAL ESTATE REVENUE		132,617			490			133,107			130,361			523			130,884


Operating expenses:
CAM and real estate taxes		(38,040	)		(432	)		(38,472	)		(37,215	)		(417	)		(37,632	)
Utilities		(5,859	)		—			(5,859	)		(6,197	)		—			(6,197	)
Other operating expenses		(8,065	)		4			(8,061	)		(8,058	)		(39	)		(8,097	)

TOTAL OPERATING EXPENSES		(51,964	)		(428	)		(52,392	)		(51,470	)		(456	)		(51,926	)

NET OPERATING INCOME	$	80,653		$	62		$	80,715		$	78,891		$	67		$	78,958


	Quarter Ended December 31, 2011									Quarter Ended December 31, 2010
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total

Real estate revenue:
Base rent	$	79,448		$	5,728		$	85,176		$	79,505		$	5,578		$	85,083
Expense reimbursements		33,786			1,315			35,101			33,442			1,102			34,544
Percentage rent		4,029			50			4,079			3,328			38			3,366
Lease termination revenue		971			50			1,021			473			5			478
Other real estate revenue		7,208			32			7,240			6,821			69			6,890

TOTAL REAL ESTATE REVENUE		125,442			7,175			132,617			123,569			6,792			130,361


Operating expenses:
CAM and real estate taxes		(36,819	)		(1,221	)		(38,040	)		(35,974	)		(1,241	)		(37,215	)
Utilities		(5,787	)		(72	)		(5,859	)		(6,133	)		(64	)		(6,197	)
Other operating expenses		(7,961	)		(104	)		(8,065	)		(7,879	)		(179	)		(8,058	)

TOTAL OPERATING EXPENSES		(50,567	)		(1,397	)		(51,964	)		(49,986	)		(1,484	)		(51,470	)

NET OPERATING INCOME	$	74,875		$	5,778		$	80,653		$	73,583		$	5,308		$	78,891

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

Page 6

Pennsylvania Real Estate Investment Trust

Net Operating Income⁽¹⁾ - Years Ended December 31, 2011 and 2010

(in thousands)


	Year Ended December 31, 2011									Year Ended December 31, 2010
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total

Real estate revenue:
Base rent	$	317,789		$	1,378		$	319,167		$	317,724		$	9,318		$	327,042
Expense reimbursements		141,420			38			141,458			142,395			1,800			144,195
Percentage rent		6,658			—			6,658			5,721			—			5,721
Lease termination revenue		1,937			—			1,937			3,303			—			3,303
Other real estate revenue		17,977			485			18,462			17,202			491			17,693

TOTAL REAL ESTATE REVENUE		485,781			1,901			487,682			486,345			11,609			497,954


Operating expenses:
CAM and real estate taxes		(151,108	)		(1,635	)		(152,743	)		(149,685	)		(3,347	)		(153,032	)
Utilities		(25,391	)		(1	)		(25,392	)		(26,938	)		(7	)		(26,945	)
Other operating expenses		(27,037	)		(116	)		(27,153	)		(28,788	)		(382	)		(29,170	)

TOTAL OPERATING EXPENSES		(203,536	)		(1,752	)		(205,288	)		(205,411	)		(3,736	)		(209,147	)

NET OPERATING INCOME	$	282,245		$	149		$	282,394		$	280,934		$	7,873		$	288,807


	Year Ended December 31, 2011									Year Ended December 31, 2010
SAME STORE RETAIL COMPARISON	Malls			Strip and Power Centers			Total			Malls			Strip and Power Centers			Total

Real estate revenue:
Base rent	$	295,346		$	22,443		$	317,789		$	295,114		$	22,610		$	317,724
Expense reimbursements		136,337			5,083			141,420			137,320			5,075			142,395
Percentage rent		6,538			120			6,658			5,660			61			5,721
Lease termination revenue		1,272			665			1,937			3,298			5			3,303
Other real estate revenue		17,787			190			17,977			16,972			230			17,202

TOTAL REAL ESTATE REVENUE		457,280			28,501			485,781			458,364			27,981			486,345


Operating expenses:
CAM and real estate taxes		(145,952	)		(5,156	)		(151,108	)		(144,329	)		(5,356	)		(149,685	)
Utilities		(25,119	)		(272	)		(25,391	)		(26,684	)		(254	)		(26,938	)
Other operating expenses		(26,475	)		(562	)		(27,037	)		(28,095	)		(693	)		(28,788	)

TOTAL OPERATING EXPENSES		(197,546	)		(5,990	)		(203,536	)		(199,108	)		(6,303	)		(205,411	)

NET OPERATING INCOME	$	259,734		$	22,511		$	282,245		$	259,256		$	21,678		$	280,934

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

Page 7

Pennsylvania Real Estate Investment Trust

Computation of

Earnings Per Share

(in thousands, except per share amounts)


	Quarter Ended December 31,						Year Ended December 31,
	2011			2010			2011			2010

Loss from continuing operations	$	(580	)	$	(8,482	)	$	(93,935	)	$	(75,014	)
Noncontrolling interest in continuing operations		23			505			3,774			3,270
Dividends on unvested restricted shares		(143	)		(174	)		(547	)		(615	)

Loss from continuing operations used to calculate earnings per share - basic and diluted	$	(700	)	$	(8,151	)	$	(90,708	)	$	(72,359	)


(Loss) income from discontinued operations	$	—		$	(56	)	$	—		$	20,651
Noncontrolling interest in discontinued operations		—			2			—			(834	)

(Loss) income from discontinued operations used to calculate earnings per share - basic and diluted	$	—		$	(54	)	$	—		$	19,817


Basic loss per share
Loss from continuing operations	$	(0.01	)	$	(0.15	)	$	(1.66	)	$	(1.43	)
Income from discontinued operations		—			(0.00	)		—			0.39

	$	(0.01	)	$	(0.15	)	$	(1.66	)	$	(1.04	)


Diluted loss per share
Loss from continuing operations	$	(0.01	)	$	(0.15	)	$	(1.66	)	$	(1.43	)
Income from discontinued operations		—			(0.00	)		—			0.39

	$	(0.01	)	$	(0.15	)	$	(1.66	)	$	(1.04	)


Weighted average common shares outstanding		55,668			55,386			55,621			51,733
Weighted average unvested restricted shares		(951	)		(1,163	)		(982	)		(1,091	)

Weighted average shares outstanding - basic		54,717			54,223			54,639			50,642
Weighted average effect of common share equivalents⁽¹⁾		—			—			—			—

Total weighted average shares outstanding - diluted		54,717			54,223			54,639			50,642

⁽¹⁾

The Company had net losses from continuing operations for all periods presented. Therefore, the effect of common share equivalents of 369 and 781 for the quarters ended December 31, 2011 and 2010, respectively, and 502 and 502 for the years ended December 31, 2011 and 2010, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive.

Page 8

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)


	Quarter Ended December 31, 2011									Quarter Ended December 31, 2010
	Consolidated			Share of unconsolidated partnerships			Total			Consolidated			Share of unconsolidated partnerships			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue⁽¹⁾	$	123,132		$	9,975		$	133,107		$	121,084		$	9,800		$	130,884
Operating expenses		(49,475	)		(2,917	)		(52,392	)		(48,974	)		(2,952	)		(51,926	)

NET OPERATING INCOME		73,657			7,058			80,715			72,110			6,848			78,958
General and administrative expenses		(10,390	)		—			(10,390	)		(10,712	)		—			(10,712	)
Interest and other income		1,004			—			1,004			1,145			—			1,145
Project costs and other expenses		(532	)		—			(532	)		(125	)		—			(125	)
Interest expense, net		(31,855	)		(2,828	)		(34,683	)		(34,142	)		(2,617	)		(36,759	)
Gains on sales of non-operating real estate		140			—			140			—			—			—
Depreciation on non real estate assets		(228	)		—			(228	)		(324	)		—			(324	)

FFO		31,796			4,230			36,026			27,952			4,231			32,183
Depreciation on real estate assets		(34,397	)		(2,209	)		(36,606	)		(38,591	)		(2,074	)		(40,665	)
Equity in income of partnerships		2,021			(2,021	)		—			2,157			(2,157	)		—
Adjustments to gain on sales of discontinued operations		—			—			—			(56	)		—			(56	)

Net loss	$	(580	)	$	—		$	(580	)	$	(8,538	)	$	—		$	(8,538	)


FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	31,796		$	4,230		$	36,026		$	27,952		$	4,231		$	32,183
Adjustments:
Straight line rent		(235	)		49			(186	)		(197	)		244			47
Recurring capital expenditures		(5,815	)		(174	)		(5,989	)		(8,216	)		(127	)		(8,343	)
Tenant allowances		(3,366	)		(139	)		(3,505	)		(7,664	)		7			(7,657	)
Capitalized leasing costs		(1,245	)		—			(1,245	)		(1,336	)		—			(1,336	)
Amortization of mortgage loan premium		(419	)		—			(419	)		(290	)		—			(290	)
Amortization of above- and below-market lease intangibles		56			(41	)		15			62			(51	)		11
Amortization of exchangeable notes debt discount		500			—			500			473			—			473

FAD	$	21,272		$	3,925		$	25,197		$	10,784		$	4,304		$	15,088


Weighted average number of shares outstanding								54,717									54,223
Weighted average effect of full conversion of OP Units								2,329									2,329
Effect of common share equivalents								369									781

Total weighted average shares outstanding, including OP Units								57,415									57,333

FFO							$	36,026								$	32,183
FFO PER DILUTED SHARE AND OP UNIT							$	0.63								$	0.56

FAD PER DILUTED SHARE AND OP UNIT							$	0.44								$	0.26

DIVIDEND PER COMMON SHARE							$	0.15								$	0.15


PAYOUT RATIOS

Payout ratio of FFO								32.7	%⁽²⁾								32.3	%⁽³⁾

Payout ratio of FAD								49.3	%⁽²⁾								53.7	%⁽³⁾

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

⁽²⁾	Twelve months ended December 31, 2011.

⁽³⁾	Twelve months ended December 31, 2010.

Page 9

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)


	Year Ended December 31, 2011											Year Ended December 31, 2010
	Consolidated			Share of unconsolidated partnerships			Discontinued operations		Total			Consolidated			Share of unconsolidated partnerships			Discontinued operations			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue⁽¹⁾	$	449,848		$	37,834		$	—	$	487,682		$	450,365		$	38,092		$	9,497		$	497,954
Operating expenses		(193,833	)		(11,455	)		—		(205,288	)		(195,273	)		(11,767	)		(2,107	)		(209,147	)

NET OPERATING INCOME		256,015			26,379			—		282,394			255,092			26,325			7,390			288,807
General and administrative expenses		(38,901	)		—			—		(38,901	)		(38,973	)		—			—			(38,973	)
Interest and other income		6,712			—			—		6,712			5,276			—			—			5,276
Project costs and other expenses		(964	)		—			—		(964	)		(1,137	)		—			—			(1,137	)
Interest expense, net		(132,256	)		(11,341	)		—		(143,597	)		(142,730	)		(8,619	)		(1,926	)		(153,275	)
Gains on sales of non operating real estate		850			—			—		850			—			—			—			—
Depreciation on non real estate assets		(909	)		—			—		(909	)		(1,484	)		—			—			(1,484	)

FFO		90,547			15,038			—		105,585			76,044			17,706			5,464			99,214
Gains on sales of real estate		740			—			—		740			—			—			—			—
Depreciation on real estate assets		(139,521	)		(8,403	)		—		(147,924	)		(160,108	)		(8,656	)		(3,907	)		(172,671	)
Impairment of assets		(52,336	)		—			—		(52,336	)		—			—			—			—
Equity in income of partnerships		6,635			(6,635	)		—		—			9,050			(9,050	)		—			—
Income from discontinued operations		—			—			—		—			1,557			—			(1,557	)		—
Gain on sale of discontinued operations		—			—			—		—			19,094			—			—			19,094

Net loss	$	(93,935	)	$	—		$	—	$	(93,935	)	$	(54,363	)	$	—		$	—		$	(54,363	)


FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO	$	90,547		$	15,038		$	—	$	105,585		$	76,044		$	17,706		$	5,464		$	99,214
Adjustments:
Straight line rent		(330	)		232			—		(98	)		(1,378	)		319			(88	)		(1,147	)
Recurring capital expenditures		(16,499	)		(422	)		—		(16,921	)		(15,792	)		(183	)		—			(15,975	)
Tenant allowances		(13,793	)		(513	)		—		(14,306	)		(18,129	)		(418	)		—			(18,547	)
Capitalized leasing costs		(4,999	)		—			—		(4,999	)		(4,459	)		—			—			(4,459	)
Amortization of mortgage loan premium		(1,287	)		—			—		(1,287	)		(1,175	)		—			—			(1,175	)
Amortization of above- and below-market lease intangibles		217			(176	)		—		41			240			(244	)		—			(4	)
Amortization of exchangeable notes debt discount		1,960			—			—		1,960			1,855			—			—			1,855

FAD	$	55,816		$	14,159		$	—	$	69,975		$	37,206		$	17,180		$	5,376		$	59,762

Weighted average number of shares outstanding										54,639												50,642
Weighted average effect of full conversion of OP Units										2,329												2,329
Effect of common share equivalents										502												502

Total weighted average shares outstanding, including OP Units										57,470												53,473


FFO									$	105,585											$	99,214
Accelerated amortization of deferred financing fees										—												3,652

FFO AS ADJUSTED									$	105,585											$	102,866

FFO PER DILUTED SHARE AND OP UNIT									$	1.84											$	1.86

FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED									$	1.84											$	1.93

FAD PER DILUTED SHARE AND OP UNIT									$	1.22											$	1.12

DIVIDEND PER COMMON SHARE									$	0.60											$	0.60


PAYOUT RATIOS
Payout ratio of FFO										32.7	%⁽²⁾											32.3	%⁽³⁾
Payout ratio of FFO as adjusted										32.7	%⁽²⁾											31.0	%⁽³⁾
Payout ratio of FAD										49.3	%⁽²⁾											53.7	%⁽³⁾

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

⁽²⁾	Twelve months ended December 31, 2011.

⁽³⁾	Twelve months ended December 31, 2010.

Page 10

Pennsylvania Real Estate Investment Trust

2011 Leasing Activity Summary


					Average Base Rent psf				Change in Base Rent psf
	Number		GLA		Previous		New		Dollar			Percentage			Annualized Tenant Improvements psf⁽¹⁾

New Leases - Previously Leased Space:

1st Quarter⁽²⁾		21		77,140	$	22.24	$	19.68	$	(2.56	)		-11.5	%	$	1.39
2nd Quarter⁽³⁾		27		82,868		21.79		21.97		0.18			0.8	%		1.45
3rd Quarter⁽⁴⁾		30		102,554		24.39		18.87		(5.52	)		-22.6	%		0.82
4th Quarter⁽⁵⁾		35		110,812		19.58		18.71		(0.87	)		-4.4	%		0.60

Total/Average		113		373,374	$	21.94	$	19.68	$	(2.26	)		-10.3	%	$	1.01

New Leases - Previously Vacant Space: ⁽⁶⁾

1st Quarter		20		86,463		N/A	$	16.86	$	16.86			N/A		$	2.05
2nd Quarter		39		110,003		N/A		18.38		18.38			N/A			3.40
3rd Quarter		41		225,145		N/A		16.56		16.56			N/A			2.28
4th Quarter		23		74,087		N/A		20.08		20.08			N/A			2.86

Total/Average		123		495,698		N/A	$	17.54	$	17.54			N/A		$	2.58

Renewal: ⁽⁷⁾

1st Quarter⁽²⁾		81		310,673	$	22.22	$	22.23	$	0.01			0.0	%	$	0.09
2nd Quarter⁽³⁾		92		321,947		22.37		22.89		0.52			2.3	%		0.05
3rd Quarter⁽⁴⁾		109		367,407		21.59		21.70		0.11			0.5	%		0.05
4th Quarter⁽⁵⁾		109		409,349		18.97		19.83		0.86			4.5	%		—

Total/Average		391		1,409,376	$	21.15	$	21.55	$	0.40			1.9	%	$	0.04

Anchor New:

1st Quarter		0		—		N/A	$	—	$	—			N/A		$	—
2nd Quarter		0		—		N/A		—		—			N/A			—
3rd Quarter		1		113,692		N/A		1.89		1.89			N/A			—
4th Quarter		0		—		N/A		—		—			N/A			—

Total/Average		1		113,692		N/A	$	1.89	$	1.89			N/A		$	—

Anchor Renewal:

1st Quarter		5		367,162	$	2.73	$	2.73	$	—			0.0	%	$	—
2nd Quarter		4		436,916		2.40		2.40		—			0.0	%		—
3rd Quarter		1		155,392		1.56		1.56		—			0.0	%		—
4th Quarter		3		321,974		2.26		2.26		—			0.0	%		0.16

Total/Average		13		1,281,444	$	2.36	$	2.36	$	—			0.0	%	$	0.04

⁽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 -5.6% for New Leases - Previously Leased Space and -6.0% for Renewals.

⁽³⁾	Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were 2.2% for New Leases - Previously Leased Space and -2.3% for Renewals.

⁽⁴⁾	Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were -14.8% for New Leases - Previously Leased Space and 0.3% for Renewals.

⁽⁵⁾	Leasing spreads on a gross rent basis (base rent plus common area maintenance, real estate taxes, and other charges) were -14.0% for New Leases - Previously Leased Space and 3.5% for Renewals.

⁽⁶⁾	This category includes newly constructed and recommissioned space.

⁽⁷⁾	This category includes expansions, relocations and lease extensions.

Page 11

Pennsylvania Real Estate Investment Trust

Summarized Rent Per Square Foot and Occupancy⁽¹⁾ Percentages


	December 31, 2011								December 31, 2010								Change
			Occupancy								Occupancy									Occupancy
	Avg Base Rent		Total			Non-Anchor			Avg Base Rent		Total			Non-Anchor			Avg Base Rent			Total			Non-Anchor
Malls weighted average⁽²⁾	$	31.77		92.9	%		89.7	%	$	32.47		92.1	%		89.4	%		-2.2	%		0.8	%		0.3	%
Strip and Power Centers weighted average	$	16.19		93.8	%		93.8	%	$	16.36		95.5	%		93.3	%		-1.0	%		-1.7	%		0.5	%
Retail Portfolio weighted average	$	28.39		93.0	%		90.2	%	$	28.80		92.5	%		90.0	%		-1.4	%		0.5	%		0.2	%

Consolidated Properties	$	29.78		92.9	%		89.5	%	$	30.44		92.1	%		89.2	%		-2.2	%		0.8	%		0.3	%
Unconsolidated Properties	$	23.55		94.1	%		94.6	%	$	23.36		95.6	%		94.1	%		0.8	%		-1.5	%		0.5	%
Same Properties	$	28.39		93.0	%		90.2	%	$	28.80		92.5	%		90.0	%		-1.4	%		0.5	%		0.2	%

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

⁽²⁾	Average base rent for tenants that lease individual spaces of 10,000 square feet or less and pay fixed rent. Average base rent for tenants greater than 10,000 square feet that pay fixed rent was $14.28/sq ft as of December 31, 2011 and $14.36/sq ft as of December 31, 2010.

Page 12

Pennsylvania Real Estate Investment Trust

Mall Sales and Rent Per Square Foot


				December 31, 2011							December 31, 2010							Change
	% of Current Quarter Mall NOI			Avg Base Rent⁽¹⁾		Avg Comp Sales⁽²⁾		Occup. Cost Ratio⁽²⁾			Avg Base Rent⁽¹⁾		Avg Comp Sales⁽²⁾		Occup. Cost Ratio⁽²⁾			Avg Base Rent⁽¹⁾			Avg Comp Sales⁽²⁾			Occup. Cost Ratio⁽²⁾
Sales per square foot over $400		31.4	%
Cherry Hill Mall				$	48.02	$	599		12.7	%	$	45.71	$	559		13.6	%		5.1	%		7.2	%		-0.9	%
Lehigh Valley Mall					45.44		526		11.7	%		45.10		516		12.7	%		0.8	%		1.9	%		-1.0	%
Woodland Mall					40.07		526		12.3	%		40.85		499		12.9	%		-1.9	%		5.4	%		-0.6	%
Jacksonville Mall					32.90		489		10.4	%		32.88		490		10.2	%		0.1	%		-0.2	%		0.2	%
Dartmouth Mall					30.83		411		11.0	%		30.49		361		12.1	%		1.1	%		13.9	%		-1.1	%
Willow Grove Park					42.49		400		16.4	%		44.10		390		16.9	%		-3.7	%		2.6	%		-0.5	%
Sales per square foot between $350 - $400		32.4	%
The Mall at Prince Georges					37.35		388		14.6	%		36.87		365		15.1	%		1.3	%		6.3	%		-0.5	%
Patrick Henry Mall					39.44		382		14.5	%		39.65		392		14.2	%		-0.5	%		-2.6	%		0.3	%
Viewmont Mall					29.21		377		12.7	%		29.71		369		13.0	%		-1.7	%		2.2	%		-0.3	%
The Gallery at Market East					38.07		374		14.0	%		38.51		359		13.7	%		-1.1	%		4.2	%		0.3	%
Valley View Mall					29.27		372		12.1	%		30.49		366		11.7	%		-4.0	%		1.6	%		0.4	%
Wyoming Valley Mall					30.42		372		12.1	%		30.95		361		13.1	%		-1.7	%		3.0	%		-1.0	%
Springfield Mall					33.92		368		14.3	%		34.06		349		14.3	%		-0.4	%		5.4	%		0.0	%
Valley Mall					25.17		364		10.8	%		26.16		314		11.7	%		-3.8	%		15.9	%		-0.9	%
Moorestown Mall					35.67		363		14.9	%		36.61		378		15.1	%		-2.6	%		-4.0	%		-0.2	%
Crossroads Mall					21.46		354		9.1	%		21.06		313		9.8	%		1.9	%		13.1	%		-0.7	%
Capital City Mall					33.63		353		11.9	%		32.83		347		11.8	%		2.4	%		1.7	%		0.1	%
Sales per square foot between $300 - $349		16.1	%
Francis Scott Key Mall					27.66		335		11.5	%		27.19		334		11.5	%		1.7	%		0.3	%		0.0	%
Exton Square Mall					35.07		332		13.4	%		37.62		317		14.5	%		-6.8	%		4.7	%		-1.1	%
Magnolia Mall					27.41		324		12.9	%		27.11		318		12.6	%		1.1	%		1.9	%		0.3	%
Plymouth Meeting Mall					29.33		323		10.4	%		29.84		321		9.6	%		-1.7	%		0.6	%		0.8	%
Logan Valley Mall					25.68		314		11.4	%		26.89		306		11.5	%		-4.5	%		2.6	%		-0.1	%
Cumberland Mall					28.13		313		13.1	%		28.58		306		13.7	%		-1.5	%		2.3	%		-0.6	%
Sales per square foot under $300		20.1	%
Palmer Park Mall					24.08		293		12.0	%		25.53		285		11.2	%		-5.7	%		2.8	%		0.8	%
Gadsden Mall					21.04		292		10.2	%		21.52		274		9.3	%		-2.2	%		6.6	%		0.9	%
Uniontown Mall					22.53		287		10.7	%		22.96		282		10.8	%		-1.9	%		1.8	%		-0.1	%
New River Valley Mall					23.43		287		10.0	%		23.86		270		10.6	%		-1.8	%		6.3	%		-0.6	%
Wiregrass Commons Mall					24.94		281		10.9	%		27.05		278		11.6	%		-7.8	%		1.1	%		-0.7	%
Nittany Mall					20.95		273		10.9	%		22.36		277		11.1	%		-6.3	%		-1.4	%		-0.2	%
Lycoming Mall					20.95		265		10.2	%		21.29		255		10.3	%		-1.6	%		3.9	%		-0.1	%
North Hanover Mall					23.56		261		12.5	%		26.13		269		12.6	%		-9.8	%		-3.0	%		-0.1	%
Washington Crown Center					19.51		253		10.8	%		20.63		234		11.7	%		-5.4	%		8.1	%		-0.9	%
Orlando Fashion Square					29.91		250		14.6	%		30.90		234		17.0	%		-3.2	%		6.8	%		-2.4	%
South Mall					21.94		246		12.6	%		23.27		227		12.3	%		-5.7	%		8.4	%		0.3	%
Beaver Valley Mall					21.73		240		13.3	%		22.00		250		13.5	%		-1.2	%		-4.0	%		-0.2	%
Phillipsburg Mall					22.44		238		11.7	%		24.89		210		12.2	%		-9.8	%		13.3	%		-0.5	%
Chambersburg Mall					21.01		230		9.3	%		24.26		240		9.6	%		-13.4	%		-4.2	%		-0.3	%
Voorhees Town Center					27.42		211		12.4	%		31.24		208		12.3	%		-12.2	%		1.4	%		0.1	%

Malls weighted average				$	31.77	$	365		12.4	%	$	32.47	$	350		12.8	%		-2.2	%		4.3	%		-0.4	%

Consolidated Properties				$	30.89	$	354		12.4	%	$	31.65	$	339		12.8	%		-2.4	%		4.4	%		-0.4	%
Unconsolidated Properties				$	41.78	$	474		12.4	%	$	41.46	$	461		13.1	%		0.8	%		2.8	%		-0.7	%
Same Properties				$	31.77	$	365		12.4	%	$	32.47	$	350		12.8	%		-2.2	%		4.3	%		-0.4	%

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

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

Page 13

Pennsylvania Real Estate Investment Trust

Mall Occupancy⁽¹⁾ - Owned GLA


	December 31, 2011						December 31, 2010						Change
	Total			Non-Anchor			Total			Non-Anchor			Total			Non-Anchor

Beaver Valley Mall		92.5	%		83.9	%		91.3	%		81.3	%		1.2	%		2.6	%

Capital City Mall		98.2	%		96.9	%		99.1	%		98.5	%		-0.9	%		-1.6	%

Chambersburg Mall		87.8	%		73.9	%		87.4	%		73.0	%		0.4	%		0.9	%

Cherry Hill Mall		94.7	%		93.7	%		94.7	%		93.6	%		0.0	%		0.1	%

Crossroads Mall		95.9	%		91.2	%		91.4	%		80.4	%		4.5	%		10.8	%

Cumberland Mall		93.6	%		89.4	%		94.5	%		91.0	%		-0.9	%		-1.6	%

Dartmouth Mall		97.9	%		96.5	%		99.0	%		98.4	%		-1.1	%		-1.9	%

Exton Square Mall		93.1	%		84.8	%		92.5	%		83.4	%		0.6	%		1.4	%

Francis Scott Key Mall		97.9	%		96.6	%		99.0	%		98.1	%		-1.1	%		-1.5	%

Gadsden Mall		96.2	%		90.5	%		93.8	%		84.6	%		2.4	%		5.9	%

The Gallery at Market East⁽²⁾		62.2	%		79.8	%		62.3	%		80.1	%		-0.1	%		-0.3	%

Jacksonville Mall		100.0	%		100.0	%		99.6	%		99.2	%		0.4	%		0.8	%

Lehigh Valley Mall		96.6	%		95.4	%		96.2	%		94.8	%		0.4	%		0.6	%

Logan Valley Mall		97.5	%		94.1	%		96.4	%		91.5	%		1.1	%		2.6	%

Lycoming Mall		97.5	%		95.3	%		96.9	%		94.2	%		0.6	%		1.1	%

Magnolia Mall		99.1	%		97.9	%		99.0	%		97.8	%		0.1	%		0.1	%

Moorestown Mall		93.8	%		86.2	%		93.7	%		86.0	%		0.1	%		0.2	%

New River Valley Mall		98.4	%		97.3	%		97.0	%		95.0	%		1.4	%		2.3	%

Nittany Mall		95.6	%		91.2	%		95.3	%		90.5	%		0.3	%		0.7	%

North Hanover Mall		96.3	%		91.2	%		92.9	%		83.0	%		3.4	%		8.2	%

Orlando Fashion Square		91.3	%		81.5	%		92.0	%		83.0	%		-0.7	%		-1.5	%

Palmer Park Mall		96.6	%		89.2	%		96.6	%		89.1	%		0.0	%		0.1	%

Patrick Henry Mall		98.9	%		97.9	%		97.9	%		95.9	%		1.0	%		2.0	%

Phillipsburg Mall		89.2	%		75.1	%		92.1	%		81.8	%		-2.9	%		-6.7	%

Plymouth Meeting Mall		85.9	%		78.6	%		86.9	%		80.0	%		-1.0	%		-1.4	%

The Mall at Prince Georges		97.0	%		93.7	%		95.7	%		91.0	%		1.3	%		2.7	%

South Mall		88.0	%		81.7	%		90.4	%		85.4	%		-2.4	%		-3.7	%

Springfield Mall		95.8	%		95.8	%		96.9	%		96.9	%		-1.1	%		-1.1	%

Uniontown Mall		86.7	%		77.4	%		93.7	%		84.1	%		-7.0	%		-6.7	%

Valley Mall		97.7	%		96.1	%		97.6	%		95.8	%		0.1	%		0.3	%

Valley View Mall		97.1	%		96.0	%		96.8	%		95.6	%		0.3	%		0.4	%

Viewmont Mall		99.2	%		97.9	%		99.4	%		98.5	%		-0.2	%		-0.6	%

Voorhees Town Center		67.2	%		66.7	%		64.8	%		64.3	%		2.4	%		2.4	%

Washington Crown Center		91.7	%		84.8	%		91.8	%		84.8	%		-0.1	%		0.0	%

Willow Grove Park⁽³⁾		96.6	%		94.4	%		70.1	%		92.6	%		26.5	%		1.8	%

Wiregrass Commons Mall		91.5	%		87.7	%		90.3	%		86.0	%		1.2	%		1.7	%

Woodland Mall		95.3	%		95.3	%		97.0	%		97.0	%		-1.7	%		-1.7	%

Wyoming Valley Mall		97.1	%		91.6	%		97.5	%		92.9	%		-0.4	%		-1.3	%


Malls weighted average⁽⁴⁾		92.9	%		89.7	%		92.1	%		89.4	%		0.8	%		0.3	%


Consolidated Properties		92.8	%		89.3	%		91.9	%		89.0	%		0.9	%		0.3	%
Unconsolidated Properties		96.5	%		95.5	%		96.4	%		95.4	%		0.1	%		0.1	%
Same Properties		92.9	%		89.7	%		92.1	%		89.4	%		0.8	%		0.3	%

⁽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 December 31, 2011 and 2010.

⁽³⁾

The total occupancy percentage for Willow Grove Park as of December 31, 2010 includes the former Strawbridge’s store that is currently under redevelopment as of December 31, 2011. This vacant department store represents 26.6% of the owned mall GLA as of December 31, 2010. 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. The remaining 28,451 sf is pending redevelopment.

⁽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.

Page 14

Pennsylvania Real Estate Investment Trust

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


	December 31, 2011								December 31, 2010								Change
	Avg		Occupancy						Avg		Occupancy						Avg			Occupancy
	Base Rent		Total			Non-Anchor			Base Rent		Total			Non-Anchor			Base Rent			Total			Non-Anchor

Christiana Center	$	20.16		96.0	%		89.1	%	$	20.16		96.0	%		89.1	%		0.0	%		0.0	%		0.0	%

The Commons at Magnolia		15.69		80.4	%		75.6	%		14.12		87.3	%		84.2	%		11.1	%		-6.9	%		-8.6	%

Metroplex Shopping Center		20.03		100.0	%		100.0	%		19.57		100.0	%		100.0	%		2.4	%		0.0	%		0.0	%

The Court at Oxford Valley		15.09		91.7	%		90.5	%		15.60		100.0	%		100.0	%		-3.3	%		-8.3	%		-9.5	%

Paxton Towne Centre		14.49		100.0	%		100.0	%		15.88		98.2	%		97.3	%		-8.8	%		1.8	%		2.7	%

Red Rose Commons		13.14		100.0	%		100.0	%		14.24		84.2	%		84.2	%		-7.7	%		15.8	%		15.8	%

Springfield Park		21.71		98.2	%		94.9	%		21.10		98.2	%		94.9	%		2.9	%		0.0	%		0.0	%

Whitehall Mall		13.50		83.1	%		81.8	%		12.51		91.6	%		82.3	%		7.9	%		-8.5	%		-0.5	%


Weighted Average	$	16.19		93.8	%		93.8	%	$	16.36		95.5	%		93.3	%		-1.0	%		-1.7	%		0.5	%


Consolidated Properties	$	15.89		96.2	%		93.3	%	$	16.54		96.1	%		93.2	%		-3.9	%		0.1	%		0.1	%

Unconsolidated Properties	$	16.29		92.8	%		94.0	%	$	16.29		95.2	%		93.4	%		0.0	%		-2.4	%		0.6	%

Same Properties	$	16.19		93.8	%		93.8	%	$	16.36		95.5	%		93.3	%		-1.0	%		-1.7	%		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.

Page 15

Pennsylvania Real Estate Investment Trust

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

(dollars in thousands)


	Paying Minimum Rent				Paying Percentage of Sales in lieu of Minimum Rent⁽²⁾				Total				Minimum Rent
Tenant⁽¹⁾	Number of Locations		GLA		Number of Locations		GLA		Total Number of Locations		Total GLA		Annualized Minimum Rent		PREIT’s share of Annualized Minimum Rent⁽³⁾		Percent of PREIT’s Total Retail Minimum Rent
Gap, Inc.		45		560,997		5		51,516		50		612,513	$	12,076	$	11,108		3.55	%

J.C. Penney Corporation, Inc.		24		2,370,409		6		824,327		30		3,194,736		7,679		7,679		2.46	%

Foot Locker, Inc.		58		272,835		11		70,927		69		343,762		7,791		7,339		2.35	%

Limited Brands, Inc.		58		279,395		14		44,323		72		323,718		7,581		7,135		2.28	%

American Eagle Outfitters, Inc.		40		218,381		2		8,840		42		227,221		6,886		6,573		2.10	%

Zale Corporation		74		55,498		0		—		74		55,498		5,725		5,420		1.73	%

Sears Holding Corporation		24		2,796,396		5		880,777		29		3,677,173		5,445		5,302		1.70	%

Signet Jewelers Limited		39		60,145		0		—		39		60,145		4,553		4,398		1.41	%

Dick’s Sporting Goods, Inc.		8		371,224		2		95,935		10		467,159		4,775		4,054		1.30	%

Luxottica Group S.p.A.		46		113,705		4		9,212		50		122,917		4,189		3,890		1.24	%

Abercrombie & Fitch Co.		19		128,443		0		—		19		128,443		3,872		3,490		1.12	%

Genesco, Inc.		59		77,834		3		3,044		62		80,878		3,484		3,343		1.07	%

Aeropostale, Inc.		33		115,299		3		10,619		36		125,918		3,353		3,124		1.00	%

Commonwealth of Pennsylvania		2		229,244		0		—		2		229,244		3,092		3,092		0.99	%

Barnes & Noble, Inc.		9		271,086		0		—		9		271,086		4,013		2,977		0.95	%

Hallmark Cards, Inc.		34		137,817		5		21,786		39		159,603		3,144		2,972		0.95	%

Best Buy Co., Inc.		19		200,502		0		—		19		200,502		3,853		2,857		0.91	%

Shoe Show, Inc.		26		167,349		5		25,549		31		192,898		2,932		2,836		0.91	%

Burlington Coat Factory		6		537,986		0		—		6		537,986		2,826		2,826		0.90	%

Regis Corporation		75		91,309		3		4,651		78		95,960		2,831		2,740		0.88	%


Total Top 20 Tenants		698		8,426,559		68		2,051,506		766		11,107,360	$	100,100	$	93,155		29.80	%


Total Leases										3,098					$	312,604		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.

Page 16

Pennsylvania Real Estate Investment Trust

Lease Expirations as of December 31, 2011

(dollars in thousands except psf amounts)


Non-Anchors⁽¹⁾
			Gross Leasable Area					Annualized Minimum Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA⁽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
2011 and Prior		310		704,166		5.8	%	$	19,547	$	18,892		6.9	%	$	27.76
2012		504		1,606,652		13.2	%		38,644		36,148		13.2	%		24.05
2013		426		1,458,070		11.9	%		31,173		29,253		10.7	%		21.38
2014		331		1,157,334		9.5	%		25,613		23,534		8.6	%		22.13
2015		259		1,283,707		10.5	%		29,054		26,068		9.5	%		22.63
2016		315		1,405,382		11.5	%		37,726		33,796		12.4	%		26.84
2017		208		913,760		7.5	%		24,566		21,817		8.0	%		26.88
2018		188		976,633		8.0	%		25,803		23,515		8.6	%		26.42
2019		138		611,405		5.0	%		18,410		17,503		6.4	%		30.11
2020		133		934,299		7.7	%		20,232		19,038		7.0	%		21.65
2021		123		591,391		4.8	%		14,440		12,904		4.7	%		24.42
Thereafter		55		568,375		4.6	%		11,341		11,053		4.0	%		19.95

Total/Average		2,990		12,211,174		100.0	%	$	296,549	$	273,521		100.0	%	$	24.29

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
2012		1		212,000		1.9	%	$	74	$	37		0.1	%	$	0.35
2013		14		1,135,570		10.1	%		4,593		4,593		11.8	%		4.04
2014		15		1,491,412		13.3	%		4,112		3,650		9.3	%		2.76
2015		18		1,715,835		15.3	%		5,115		5,115		13.1	%		2.98
2016		20		1,895,436		16.9	%		4,777		4,777		12.2	%		2.52
2017		9		1,021,341		9.1	%		3,825		3,410		8.7	%		3.75
2018		6		777,965		6.9	%		4,084		4,084		10.4	%		5.25
2019		7		770,343		6.9	%		2,014		2,014		5.2	%		2.61
2020		4		346,039		3.1	%		1,415		1,415		3.6	%		4.09
2021		4		426,239		3.8	%		3,059		1,775		4.5	%		7.18
Thereafter		10		1,410,486		12.7	%		8,213		8,213		21.1	%		5.82

Total/Average		108		11,202,666		100.0	%	$	41,281	$	39,083		100.0	%	$	3.68

⁽¹⁾	Only includes owned space.

⁽²⁾	Does not include tenants occupying space under agreements with initial terms of less than one year.

⁽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.

Page 17

Pennsylvania Real Estate Investment Trust

Retail Gross Leasable Area Occupancy Summary as of December 31, 2011


	Owned GLA
	Occupied						Vacant
	Anchor		Non-Anchor				Anchor		Non-Anchor
	Anchor		Large Format⁽¹⁾		Small Shop⁽²⁾		Anchor		Non-Anchor		GLA Not Owned		Total GLA
Malls
Beaver Valley Mall		511,267		148,740		225,382		—		72,007		204,770		1,162,166
Capital City Mall		204,301		63,586		212,097		—		8,785		120,000		608,769
Chambersburg Mall		241,690		19,651		137,601		—		55,481		—		454,423
Cherry Hill Mall⁽³⁾		138,000		204,015		434,962		—		43,119		478,885		1,298,981
Crossroads Mall		254,211		74,108		128,334		—		19,625		—		476,278
Cumberland Mall		264,348		212,538		149,282		—		43,049		273,230		942,447
Dartmouth Mall		208,460		142,274		168,819		—		11,245		140,000		670,798
Exton Square Mall		440,301		26,617		286,328		—		56,132		277,468		1,086,846
Francis Scott Key Mall		222,176		140,616		198,036		—		11,800		139,333		711,961
Gadsden Mall		300,960		65,746		114,541		—		18,841		—		500,088
The Gallery at Market East		350,115		73,975		249,962		328,390		81,990		—		1,084,432
Jacksonville Mall		242,115		98,693		147,919		—		—		—		488,727
Lehigh Valley Mall		212,000		171,800		375,118		—		26,397		371,986		1,157,301
Logan Valley Mall		455,060		43,943		262,863		—		19,337		—		781,203
Lycoming Mall		333,413		182,268		180,890		—		18,035		120,000		834,606
Magnolia Mall		343,118		86,608		177,751		—		5,693		—		613,170
Moorestown Mall		408,356		98,682		185,654		—		45,558		321,200		1,059,450
New River Valley Mall		175,306		134,996		123,821		—		7,153		—		441,276
Nittany Mall		221,462		12,500		184,012		—		19,070		95,000		532,044
North Hanover Mall		206,792		21,047		114,765		—		13,159		—		355,763
Orlando Fashion Square		491,999		136,808		222,176		—		81,292		155,576		1,087,851
Palmer Park Mall		314,235		—		128,144		—		15,552		—		457,931
Patrick Henry Mall		279,619		16,741		273,721		—		6,111		140,000		716,192
Phillipsburg Mall		326,552		42,021		146,175		—		62,390		—		577,138
Plymouth Meeting Mall⁽⁴⁾		253,584		163,161		217,163		—		103,642		214,635		952,185
The Mall at Prince Georges		479,619		119,073		292,137		—		27,746		—		918,575
South Mall		139,691		120,071		96,744		—		48,693		—		405,199
Springfield Mall		—		—		212,973		—		9,332		387,899		610,204
Uniontown Mall		391,096		49,888		165,083		30,282		62,643		—		698,992
Valley Mall		280,549		125,334		252,569		—		15,318		243,400		917,170
Valley View Mall		96,357		74,148		163,153		—		9,843		254,596		598,097
Viewmont Mall		386,262		82,893		153,043		—		4,996		120,000		747,194
Voorhees Town Center⁽⁵⁾		4,404		67,478		136,742		—		101,785		420,838		731,247
Washington Crown Center		245,401		89,086		157,301		—		44,283		140,095		676,166
Willow Grove Park		225,000		54,425		283,894		—		19,883		413,121		996,323
Wiregrass Commons		94,686		10,345		174,917		—		25,865		332,152		637,965
Woodland Mall		—		120,959		293,181		—		20,500		725,187		1,159,827
Wyoming Valley Mall		592,110		90,851		201,648		—		26,691		—		911,300

Total Malls (38 properties)		10,334,615		3,385,685		7,628,901		358,672		1,263,041		6,089,371		29,060,285

Strip and Power Centers
Christiana Center		190,814		68,132		31,288		—		12,200		—		302,434
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		323,336		36,154		—		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		20,500		22,443		—		2,329		145,669		274,480
Whitehall Mall		294,635		135,271		43,891		56,828		39,867		—		570,492

Total Strip and Power Centers (8 properties)		868,051		1,399,351		311,321		56,828		112,605		1,292,869		4,041,025


CONSOLIDATED PROPERTIES		10,485,687		3,532,060		7,178,145		358,672		1,259,928		5,728,744		28,543,236
UNCONSOLIDATED PROPERTIES		716,979		1,252,976		762,077		56,828		115,718		1,653,496		4,558,074
TOTAL PROPERTIES		11,202,666		4,785,036		7,940,222		415,500		1,375,646		7,382,240		33,101,310

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

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

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

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

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

Page 18

Pennsylvania Real Estate Investment Trust

Property Information as of December 31, 2011


Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
MALLS
Beaver Valley Mall Monaca, PA	100%	2002	1970/1991	Boscov’s jcpenney Macy’s Sears	9/30/18 9/30/17 (1) 8/15/16

Capital City Mall Camp Hill, PA	100%	2003	1974/2005	jcpenney Macy’s Sears	11/30/15 (1) 7/28/14

Chambersburg Mall Chambersburg, PA	100%	2003	1982	Bon-Ton Burlington Coat Factory jcpenney Sears	1/28/16 1/31/19 3/31/17 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 (1) (1) 7/31/12

Logan Valley Mall Altoona, PA	100%	2003	1960/1997	jcpenney Macy’s Sears	1/31/17 1/31/15 10/31/16

Lycoming Mall Pennsdale, PA	100%	2003	1978/2007	Best Buy Bon-Ton 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

Page 19


Properties	Ownership Interest	Date Acquired	Year Built/Last Renovated	Anchors / Major Tenants	Lease Expiration
Nittany Mall State College, PA	100%	2003	1968/1990	Bon-Ton jcpenney Macy’s Sears	1/31/13 7/31/15 (1) 8/28/15

North Hanover Mall Hanover, PA	100%	2003	1967/1999	Dick’s Sporting Goods jcpenney Sears	1/31/18 1/31/16 11/30/14

Orlando Fashion Square⁽²⁾ Orlando, FL	100%	2004	1973/2003	Dillard’s jcpenney Macy’s Sears	1/31/14 4/30/13 10/30/71 (1)

Palmer Park Mall Easton, PA	100%	1972/2003	1972/1998	Bon-Ton Boscov’s	7/25/14 10/31/18

Patrick Henry Mall Newport News, VA	100%	2003	1988/2005	Dick’s Sporting Goods Dillard’s jcpenney Macy’s	1/31/22 9/22/13 10/31/15 (1)

Phillipsburg Mall Phillipsburg, NJ	100%	2003	1989/2003	Bon-Ton jcpenney Kohl’s Sears	1/31/15 3/31/13 1/31/25 4/30/14

Plymouth Meeting Mall⁽²⁾ Plymouth Meeting, PA	100%	2003	1966/2009	AMC Theater Boscov’s Macy’s Whole Foods	12/31/18 10/31/16 (1) 11/30/29

The Mall at Prince Georges Hyattsville, MD	100%	1998	1959/2004	jcpenney Macy’s Marshalls Ross Dress for Less Target	7/31/16 10/31/18 9/30/16 1/31/18 1/31/15

South Mall Allentown, PA	100%	2003	1975/1992	Bon-Ton Stein Mart	1/30/16 10/31/16

Springfield Mall Springfield, PA	50%	2005	1974/1997	Macy’s Target	(1) (1)

Uniontown Mall⁽²⁾ Uniontown, PA	100%	2003	1972/1990	Bon-Ton Burlington Coat Factory jcpenney Sears Teletech Customer Care	1/30/16 1/31/19 10/31/15 2/25/13 6/30/13

Valley Mall Hagerstown, MD	100%	2003	1974/1999	Bon-Ton jcpenney Macy’s Sears	1/31/14 10/31/14 (1) (1)

Valley View Mall La Crosse, WI	100%	2003	1980/2001	Barnes & Noble Herberger’s jcpenney Macy’s Sears	1/31/17 (1) 7/31/15 (1) (1)

Viewmont Mall Scranton, PA	100%	2003	1968/2006	jcpenney Macy’s Sears	10/31/15 (1) 12/31/15

Voorhees Town Center Voorhees, NJ	100%	2003	1970/2007	Boscov’s Macy’s The Star Group Voorhees Town Hall	(1) (1) 8/31/28 (1)

Washington Crown Center Washington, PA	100%	2003	1969/1999	Bon-Ton Gander Mountain Sports Macy’s Sears	1/31/15 7/24/13 (1) 8/17/14

Willow Grove Park Willow Grove, PA	100%	2000/2003	1982/2001	Bloomingdale’s The Cheesecake Factory Macy’s Sears	(1) 1/31/28 1/31/22 (1)

Wiregrass Commons Mall Dothan, AL	100%	2003	1986/2008	Belk Burlington Coat Factory Dillards jcpenney	(1) 1/31/20 (1) (1)

Woodland Mall Grand Rapids, MI	100%	2005	1968/1998	Apple Barnes & Noble jcpenney Kohl’s Macy’s Sears	6/30/15 1/31/20 (1) (1) (1) (1)

Wyoming Valley Mall Wilkes-Barre, PA	100%	2003	1971/2006	Bon-Ton jcpenney Macy’s Sears	1/31/17 4/30/17 1/31/17 8/1/16

Page 20


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

POWER CENTERS
Christiana Center Newark, DE	100%	1998	1998	Costco Dick’s Sporting Goods	9/30/18 11/30/13

Metroplex Shopping Center⁽³⁾ Plymouth Meeting, PA	50%	1999	2001	Giant Food Store Lowe’s Target	2/28/21 (1) (1)

The Court at Oxford Valley⁽³⁾ Langhorne, PA	50%	1997	1996	Best Buy BJ’s Dick’s Sporting Goods Home Depot	5/31/21 (1) 4/30/21 (1)

Paxton Towne Centre Harrisburg, PA	100%	1999	2001	Costco Kohl’s Target Weis Markets	(1) 1/30/21 (1) 11/30/20

Red Rose Commons⁽³⁾ Lancaster, PA	50%	1998	1998	Home Depot Weis Markets	(1) (1)

Whitehall Mall⁽³⁾ Allentown, PA	50%	1964	1964/1998	Bed, Bath & Beyond Kohl’s Sears	1/31/15 3/9/17 9/18/21

STRIP CENTERS
The Commons at Magnolia Florence, SC	100%	1999	1991/2002	Bed, Bath & Beyond Target	1/31/15 (1)

Springfield Park Springfield, PA	50%	1997/1998	1997/1998	Bed, Bath & Beyond LA Fitness Target	1/31/14 3/31/17 (1)

⁽¹⁾	Space is not owned by PREIT.

⁽²⁾	Property is subject to a ground lease.

⁽³⁾	Property is managed by a third party.

Page 21

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method⁽¹⁾

(in thousands, except per share amounts)


	December 31, 2011									December 31, 2010
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,470,167		$	211,790		$	3,681,957		$	3,448,900		$	210,505		$	3,659,405
Construction in progress		91,538			864			92,402			121,547			753			122,300
Land held for development		15,292			—			15,292			17,021			—			17,021

Total investments in real estate		3,576,997			212,654			3,789,651			3,587,468			211,258			3,798,726
Accumulated depreciation		(844,010	)		(73,594	)		(917,604	)		(729,086	)		(66,699	)		(795,785	)

Net investments in real estate		2,732,987			139,060			2,872,047			2,858,382			144,559			3,002,941

Investments in partnerships, at equity		16,009			(16,009	)		—			30,959			(30,959	)		—
Other assets:
Cash and cash equivalents		21,798			5,683			27,481			42,327			4,780			47,107
Rent and other receivables⁽²⁾		39,832			2,065			41,897			40,732			6,390			47,122
Intangible assets, net		9,921			178			10,099			15,787			288			16,075
Deferred costs and other assets, net		89,707			15,704			105,411			91,930			8,304			100,234

Total other assets		177,267			7,621			184,888			221,735			(11,197	)		210,538

Total assets	$	2,910,254		$	146,681		$	3,056,935		$	3,080,117		$	133,362		$	3,213,479


LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $282 and $1,569 as of December 31, 2011 and December 31, 2010, respectively)	$	1,691,381		$	204,546		$	1,895,927		$	1,744,248		$	175,693		$	1,919,941
Exchangeable notes (net of discount of $849 and $2,809 as of December 31, 2011 and December 31, 2010, respectively)		136,051			—			136,051			134,091			—			134,091
Revolving Facility		95,000			—			95,000			—			—			—
Term Loans		240,000			—			240,000			347,200			—			347,200
Tenants’ deposits and deferred rent		13,278			3,492			16,770			16,583			3,899			20,482
Distributions in excess of partnership investments		64,938			(64,938	)		—			44,614			(44,614	)		—
Fair value of derivative instruments		21,112			—			21,112			27,233			—			27,233
Other liabilities		60,456			3,581			64,037			61,618			(1,616	)		60,002

Total liabilities		2,322,216			146,681			2,468,897			2,375,587			133,362			2,508,949

Equity:
Total equity		588,038			—			588,038			704,530			—			704,530

Total liabilities and equity	$	2,910,254		$	146,681		$	3,056,935		$	3,080,117		$	133,362		$	3,213,479

⁽¹⁾

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

⁽²⁾	Total includes straight line rent of $27.9 million ($25.5 million wholly owned, $2.4 million partnership) as of December 31, 2011, and $27.8 million ($25.2 million wholly owned, $2.6 million partnership) as of December 31, 2010.

Page 22

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Property Type⁽¹⁾

(in thousands, except per share amounts)


	December 31, 2011												December 31, 2010
	Malls			Strip and Power Centers			Corporate, Development and Other Properties			Total			Malls			Strip and Power Centers			Corporate, Development and Other Properties			Total
ASSETS:
Investments in real estate:
Investments in real estate, at cost	$	3,454,686		$	221,021		$	21,542		$	3,697,249		$	3,433,844		$	219,321		$	23,261		$	3,676,426
Construction in progress		36,088			—			56,314			92,402			67,123			—			55,177			122,300

Total investments in real estate		3,490,774			221,021			77,856			3,789,651			3,500,967			219,321			78,438			3,798,726
Accumulated depreciation		(838,810	)		(77,292	)		(1,502	)		(917,604	)		(724,708	)		(69,785	)		(1,292	)		(795,785	)

Net investments in real estate		2,651,964			143,729			76,354			2,872,047			2,776,259			149,536			77,146			3,002,941

Other assets:
Cash and cash equivalents		16,947			2,113			8,421			27,481			21,119			1,931			24,057			47,107
Rent and other receivables⁽²⁾		38,087			2,451			1,359			41,897			37,768			7,008			2,346			47,122
Intangible assets, net		2,852			—			7,247			10,099			8,725			—			7,350			16,075
Deferred costs and other assets, net		67,851			15,309			22,251			105,411			72,165			7,960			20,109			100,234

Total other assets		125,737			19,873			39,278			184,888			139,777			16,899			53,862			210,538

Total assets	$	2,777,701		$	163,602		$	115,632		$	3,056,935		$	2,916,036		$	166,435		$	131,008		$	3,213,479


LIABILITIES AND EQUITY
Liabilities:
Mortgage loans (including debt premium of $282 and $1,569 as of December 31, 2011 and December 31, 2010, respectively)	$	1,694,476		$	201,451		$	—		$	1,895,927		$	1,743,470		$	171,553		$	4,918		$	1,919,941
Exchangeable notes (net of discount of $849 and $2,809 as of December 31, 2011 and December 31, 2010, respectively)		—			—			136,051			136,051			—			—			134,091			134,091
Revolving Facility		—			—			95,000			95,000			—			—			—			—
Term Loans		—			—			240,000			240,000			—			—			347,200			347,200
Tenants’ deposits and deferred rent		14,686			1,933			151			16,770			18,205			2,128			149			20,482
Fair value of derivative instruments		—			—			21,112			21,112			—			—			27,233			27,233
Other liabilities		33,098			1,687			29,252			64,037			32,593			(2,277	)		29,686			60,002

Total liabilities		1,742,260			205,071			521,566			2,468,897			1,794,268			171,404			543,277			2,508,949

Equity:
Total equity		1,035,441			(41,469	)		(405,934	)		588,038			1,121,768			(4,969	)		(412,269	)		704,530

Total liabilities and equity	$	2,777,701		$	163,602		$	115,632		$	3,056,935		$	2,916,036		$	166,435		$	131,008		$	3,213,479

⁽¹⁾

⁽²⁾	Total includes straight line rent of $27.9 million ($25.5 million wholly owned, $2.4 million partnership) as of December 31, 2011, and $27.8 million ($25.2 million wholly owned, $2.6 million partnership) as of December 31, 2010.

Page 23

Pennsylvania Real Estate Investment Trust

Investment in Real Estate⁽¹⁾

(in thousands)


	December 31, 2011								December 31, 2010
	Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Properties and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Malls
Beaver Valley Mall	$	70,444	$	—	$	21,550	$	48,894	$	69,663	$	—	$	18,536	$	51,127
Capital City Mall		96,393		—		25,081		71,312		95,920		—		21,547		74,373
Chambersburg Mall		38,445		—		8,870		29,575		38,529		—		7,803		30,726
Cherry Hill Mall		452,603		419		98,194		354,828		448,513		34		76,173		372,374
Crossroads Mall		44,634		873		10,206		35,301		36,750		1,057		8,903		28,904
Cumberland Mall		63,595		671		10,982		53,284		63,340		153		9,051		54,442
Dartmouth Mall		63,105		—		28,511		34,594		62,543		—		26,604		35,939
Exton Square Mall		148,948		72		29,903		119,117		147,556		64		26,367		121,253
Francis Scott Key Mall		78,340		—		19,395		58,945		76,482		813		16,587		60,708
Gadsden Mall		62,336		—		11,820		50,516		61,174		—		9,735		51,439
The Gallery at Market East		170,032		4,479		27,437		147,074		169,696		2,014		19,913		151,797
Jacksonville Mall		80,042		—		18,701		61,341		79,247		—		16,096		63,151
Logan Valley Mall		96,326		—		24,777		71,549		96,000		—		22,521		73,479
Lycoming Mall		77,566		—		18,451		59,115		76,814		—		15,817		60,997
Magnolia Mall		88,770		33		27,121		61,682		87,434		27		23,814		63,647
Moorestown Mall		93,291		104		28,194		65,201		92,560		87		25,201		67,446
New River Valley Mall		58,142		—		18,501		39,641		57,892		—		15,238		42,654
Nittany Mall		44,327		—		10,372		33,955		43,458		—		9,073		34,385
North Hanover Mall⁽²⁾		27,219		101		5,092		22,228		38,219		17,100		8,004		47,315
Orlando Fashion Square		43,226		—		7,550		35,676		40,426		—		4,448		35,978
Palmer Park Mall		34,529		—		12,912		21,617		34,465		—		12,103		22,362
Patrick Henry Mall		142,469		—		37,953		104,516		141,312		—		32,338		108,974
Phillipsburg Mall⁽³⁾		19,714		—		4,760		14,954		54,088		606		10,930		43,764
Plymouth Meeting Mall		161,328		7		34,397		126,938		159,802		426		28,256		131,972
The Mall at Prince Georges		101,522		—		36,338		65,184		100,654		—		32,782		67,872
South Mall		34,196		—		6,924		27,272		33,728		—		6,107		27,621
Uniontown Mall		40,827		—		11,156		29,671		39,955		—		9,750		30,205
Valley Mall		92,966		—		23,494		69,472		92,081		—		21,252		70,829
Valley View Mall		67,930		—		14,699		53,231		67,602		—		12,977		54,625
Viewmont Mall		91,330		—		20,588		70,742		90,359		—		17,600		72,759
Voorhees Town Center		88,473		808		17,680		71,601		66,001		20,774		13,950		72,825
Washington Crown Center		40,432		—		13,594		26,838		40,249		—		12,826		27,423
Willow Grove Park		195,841		28,385		51,600		172,626		189,032		23,943		45,471		167,504
Wiregrass Commons Mall		53,629		—		10,964		42,665		52,072		—		9,159		42,913
Woodland Mall		185,681		—		34,139		151,542		185,530		—		28,070		157,460
Wyoming Valley Mall		108,721		—		26,112		82,609		107,913		—		22,251		85,662

Total Consolidated Malls		3,357,372		35,952		808,018		2,585,306		3,337,059		67,098		697,253		2,706,904

Unconsolidated Malls
Lehigh Valley Mall		41,648		130		18,960		22,818		41,516		21		17,338		24,199
Springfield Mall		55,666		6		11,832		43,840		55,269		4		10,117		45,156

Total Unconsolidated Malls		97,314		136		30,792		66,658		96,785		25		27,455		69,355


TOTAL MALLS	$	3,454,686	$	36,088	$	838,810	$	2,651,964	$	3,433,844	$	67,123	$	724,708	$	2,776,259

⁽¹⁾

⁽²⁾	Net of impairment of $24,134 recorded in the 3rd Quarter of 2011.

⁽³⁾	Net of impairment of $27,977 recorded in the 3rd Quarter of 2011.

Page 24

Pennsylvania Real Estate Investment Trust

Investment in Real Estate⁽¹⁾ (continued)

(in thousands)


	December 31, 2011								December 31, 2010
	Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate		Operating Property and Land Held for Development		Construction in Progress		Accumulated Depreciation		Net Real Estate
Consolidated Strip and Power Centers
Christiana Center	$	42,681	$	—	$	13,552	$	29,129	$	42,020	$	—	$	12,288	$	29,732
The Commons at Magnolia		12,677		—		3,835		8,842		12,674		—		3,347		9,327
Paxton Towne Centre		57,437		—		18,605		38,832		57,147		—		16,198		40,949

Total Consolidated Strip and Power Centers		112,795		—		35,992		76,803		111,841		—		31,833		80,008

Unconsolidated Strip and Power Centers
Metroplex Shopping Center		42,791		—		17,289		25,502		42,180		—		15,315		26,865
The Court at Oxford Valley		27,908		—		9,217		18,691		27,883		—		8,600		19,283
Red Rose Commons		13,617		—		4,294		9,323		13,178		—		3,936		9,242
Whitehall Mall		16,716		—		8,814		7,902		16,954		—		8,570		8,384
Springfield Park		7,194		—		1,686		5,508		7,285		—		1,531		5,754

Total Unconsolidated Strip and Power Centers		108,226		—		41,300		66,926		107,480		—		37,952		69,528

TOTAL STRIP AND POWER CENTERS	$	221,021	$	—	$	77,292	$	143,729	$	219,321	$	—	$	69,785	$	149,536


Consolidated Properties Under Development
Springhills	$	—	$	22,004	$	—	$	22,004	$	—	$	21,984	$	—	$	21,984
White Clay Point		—		33,582		—		33,582		—		32,465		—		32,465

Total Consolidated Properties Under Development		—		55,586		—		55,586		—		54,449		—		54,449

Unconsolidated Properties Under Development
Pavilion at Market East		6,250		728		1,502		5,476		6,240		728		1,292		5,676

Total Unconsolidated Properties Under Development		6,250		728		1,502		5,476		6,240		728		1,292		5,676

Other Properties
Land held for development - consolidated		15,292		—		—		15,292		17,021		—		—		17,021

Total Other Properties		15,292		—		—		15,292		17,021		—		—		17,021

TOTAL DEVELOPMENT AND OTHER	$	21,542	$	56,314	$	1,502	$	76,354	$	23,261	$	55,177	$	1,292	$	77,146


TOTAL INVESTMENT IN REAL ESTATE	$	3,697,249	$	92,402	$	917,604	$	2,872,047	$	3,676,426	$	122,300	$	795,785	$	3,002,941


CONSOLIDATED PROPERTIES	$	3,485,459	$	91,538	$	844,010	$	2,732,987	$	3,465,921	$	121,547	$	729,086	$	2,858,382

UNCONSOLIDATED PROPERTIES		211,790		864		73,594		139,060		210,505		753		66,699		144,559


TOTAL INVESTMENT IN REAL ESTATE	$	3,697,249	$	92,402	$	917,604	$	2,872,047	$	3,676,426	$	122,300	$	795,785	$	3,002,941

⁽¹⁾

Page 25

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)


	Quarter Ended December 31, 2011						Year Ended December 31, 2011
	Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated		Total
Redevelopment projects with incremental GLA and/or anchor replacement⁽¹⁾	$	10,110	$	39	$	10,149	$	25,135	$	421	$	25,556
New development projects		426		6		432		1,116		11		1,127
Tenant allowances		3,366		139		3,505		13,793		513		14,306
Recurring capital expenditures:
CAM expenditures		4,517		174		4,691		11,411		422		11,833
Non-CAM expenditures		1,298				1,298		5,088		—		5,088

Total recurring capital expenditures		5,815		174		5,989		16,499		422		16,921

Total	$	19,717	$	358	$	20,075	$	56,543	$	1,367	$	57,910

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

Page 26

Pennsylvania Real Estate Investment Trust

Debt Analysis as of December 31, 2011

(in thousands)


Outstanding Debt
	Fixed Rate⁽¹⁾			% of Total Indebtedness			Variable Rate⁽²⁾			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable⁽³⁾	$	1,677,046			70.9	%	$	14,335			0.6	%	$	1,691,381			71.5	%
Unconsolidated mortgage loans payable		200,773			8.5	%		3,773			0.1	%		204,546			8.6	%
Exchangeable notes⁽⁴⁾		136,051			5.7	%		—			0.0	%		136,051			5.7	%
2010 Credit Facility⁽⁵⁾		240,000			10.1	%		95,000			4.1	%		335,000			14.2	%

TOTAL OUTSTANDING DEBT	$	2,253,870			95.2	%	$	113,108			4.8	%	$	2,366,978			100.0	%


AVERAGE STATED INTEREST RATE		5.50	%					4.13	%					5.40	%

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

⁽²⁾	The variable rate amount includes $15.4 million that is subject to a LIBOR cap with a strike rate of 2.5%. The LIBOR cap expires in April 2012.

⁽³⁾	Includes debt premium of $282

⁽⁴⁾	Net of debt discount of $849

⁽⁵⁾

As of December 31, 2011, 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 becomes 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 is subject to a LIBOR cap with a strike price of 2.50%. The LIBOR cap will mature in April 2012.


Average Debt Balance
					2010 Credit Facility
		Mortgage Debt⁽¹⁾			Revolving Facility		Term Loans		Exchangeable Notes		Exchangeable Notes Discount			TOTAL
Beginning Balance	9/30/2011	$	1,950,592		$	55,000	$	240,000	$	136,900	$	(1,349	)	$	2,381,143
Capital City Mall mortgage repayment⁽²⁾			(48,383	)		—		—		—		—			(48,383	)
Mortgage loan amortization⁽³⁾			(6,282	)		—		—		—		—			(6,282	)
Revolving Facility borrowing			—			40,000		—		—		—			40,000
Exchangeable notes discount amortization			—			—		—		—		500			500


Ending Balance	12/31/2011	$	1,895,927		$	95,000	$	240,000	$	136,900	$	(849	)	$	2,366,978

Weighted Average Balance		$	1,916,911		$	81,522	$	240,000	$	136,900	$	(1,183	)	$	2,374,150

⁽¹⁾	Includes debt premium.

⁽²⁾	Includes write off of debt premium.

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


Debt Maturities⁽¹⁾
							2010 Credit Facility
Year	Scheduled Amortization		Debt Premium Amortization		Mortgage Balance at Maturity		Revolving Facility		Term Loans		Exchangeable Notes		Exchangeable Notes Discount Amortization			Total Debt
2012	$	22,864	$	282	$	413,705	$	—	$	—	$	136,900	$	(849	)	$	572,902
2013		17,694		—		425,772		—		—		—		—			443,466
2014		16,244		—		99,203		95,000		240,000		—		—			450,447
2015		15,367		—		305,896		—		—		—		—			321,263
2016		5,180		—		243,745		—		—		—		—			248,925
2017		3,997		—		150,000		—		—		—		—			153,997
Thereafter		14,014		—		161,964		—		—		—		—			175,978

	$	95,360	$	282	$	1,800,285	$	95,000	$	240,000	$	136,900	$	(849	)	$	2,366,978

⁽¹⁾

The weighted average period to mortgage maturity is 3.37 years, excluding extension options. Excludes debt premium on mortgage loans and debt discount on exchangeable notes. Includes 100% of mortgage debt from consolidated properties and our share of mortgage debt from unconsolidated properties, based on our ownership percentage.


Weighted Average Mortgage Interest Rates
	Interest Rate					Marked to Market Interest Rate (GAAP)⁽¹⁾
Year	Balance		Interest Rate			Balance		Interest Rate
2012	$	418,552		5.28	%	$	418,552		5.17	%
2013		429,943		5.38	%		429,943		5.38	%
2014		102,331		7.28	%		102,331		7.28	%
2015		334,263		5.69	%		334,263		5.69	%
2016		263,933		5.38	%		263,933		5.38	%
2017		150,000		5.51	%		150,000		5.51	%
Thereafter		196,623		5.61	%		196,623		5.61	%

Total	$	1,895,645		5.54	%	$	1,895,645		5.52	%

⁽¹⁾	Excludes amortization of debt issuance costs.

Page 27

Pennsylvania Real Estate Investment Trust

Debt Schedule as of December 31, 2011

(in thousands)


		Proportionate Share⁽¹⁾			Interest Rate			Marked to Market Interest Rate (GAAP)			Annual Debt Service
	Lender	Debt	Debt Premium/ (Discount)	Total	Interest Rate			Marked to Market Interest Rate (GAAP)			Annual Debt Service	Balance at Maturity	Maturity Date
Fixed Rate Mortgage Loans
Beaver Valley Mall	CMBS	$42,531	$—	$42,531		7.36	%		7.36	%	$3,972	$42,266	Apr 2012
Christiana Center^(2)(3)(4)	Bank	40,000	—	40,000		3.67	%		3.67	%	1,467	40,000	June 2012
Paxton Towne Centre^(2)(4)(5)	Bank	50,000	—	50,000		3.75	%		3.75	%	1,876	50,000	July 2012
Cherry Hill Mall	Life Insurance Co	180,531	—	180,531		5.42	%		5.42	%	13,510	177,689	Oct 2012
Cherry Hill Mall Supplemental Loan	Life Insurance Co	53,612	—	53,612		5.51	%		5.51	%	3,030	53,003	Oct 2012
Cumberland Mall Loan #1	CMBS	39,470	282	39,752		6.50	%		5.40	%	3,413	38,782	Nov 2012
New River Valley Mall^(2)(4)(6)(7)	Bank	25,000	—	25,000		4.83	%		4.83	%	1,208	25,000	Jan 2013
Dartmouth Mall	CMBS	59,769	—	59,769		4.95	%		4.95	%	4,484	57,594	June 2013
Moorestown Mall	CMBS	54,859	—	54,859		4.95	%		4.95	%	4,115	52,863	June 2013
Jacksonville Mall⁽²⁾⁽⁸⁾	Bank	56,265	—	56,265		5.83	%		5.83	%	3,277	56,265	Sept 2013
Logan Valley Mall⁽²⁾⁽⁸⁾	Bank	63,000	—	63,000		5.79	%		5.79	%	3,649	63,000	Sept 2013
Wyoming Valley Mall⁽²⁾⁽⁸⁾	Bank	65,000	—	65,000		5.85	%		5.85	%	3,803	65,000	Sept 2013
Francis Scott Key Mall⁽²⁾	Bank	55,000	—	55,000		5.25	%		5.25	%	2,885	55,000	Dec 2013
Viewmont Mall⁽²⁾	Bank	48,000	—	48,000		5.25	%		5.25	%	2,518	48,000	Dec 2013
Exton Square Mall	Life Insurance Co	68,148	—	68,148		7.50	%		7.50	%	5,873	66,732	Jan 2014
Lycoming Mall	Bank	34,183	—	34,183		6.84	%		6.84	%	3,001	32,470	Jul 2014
Springfield East⁽²⁾⁽⁹⁾	Bank	2,228	—	2,228		5.39	%		5.39	%	92	2,061	Mar 2015
Springfield Park⁽²⁾⁽⁹⁾	Bank	2,616	—	2,616		5.39	%		5.39	%	108	2,419	Mar 2015
Magnolia Mall	CMBS	59,551	—	59,551		5.33	%		5.33	%	4,413	54,842	July 2015
Patrick Henry Mall	Life Insurance Co	91,428	—	91,428		6.34	%		6.34	%	7,743	83,210	Oct 2015
Springfield Mall⁽²⁾	Bank	32,991	—	32,991		4.77	%		4.77	%	2,118	30,740	Nov 2015
Willow Grove Park	Life Insurance Co	145,449	—	145,449		5.65	%		5.65	%	11,083	132,624	Dec 2015
Valley Mall	CMBS	85,384	—	85,384		5.49	%		5.49	%	5,014	78,996	Mar 2016
Woodland Mall	CMBS	151,055	—	151,055		5.58	%		5.58	%	10,760	140,484	Apr 2016
801 Market Street^(2)(4)(8)	Bank	25,000	—	25,000		3.84	%		3.84	%	960	24,265	Jul 2016
The Mall at Prince Georges	CMBS	150,000	—	150,000		5.51	%		5.51	%	8,269	150,000	June 2017
Whitehall Mall	Life Insurance Co	5,686	—	5,686		7.00	%		7.00	%	574	4,145	Nov 2018
Cumberland Mall Loan #2	Bank	2,240	—	2,240		5.00	%		5.00	%	390	—	Dec 2018
Valley View Mall	CMBS	31,445	—	31,445		5.95	%		5.95	%	2,290	27,161	July 2020
Lehigh Valley Mall	Life Insurance Co	68,739	—	68,739		5.88	%		5.88	%	4,972	58,519	July 2020
Red Rose Commons	CMBS	14,868	—	14,868		5.14	%		5.14	%	978	12,379	July 2021
The Court at Oxford Valley	CMBS	30,000	—	30,000		5.56	%		5.56	%	1,668	25,782	July 2021
Metroplex Shopping Center	CMBS	43,645	—	43,645		5.00	%		5.00	%	2,681	33,978	Oct 2023

Total Fixed Rate Mortgage Loans		1,877,693	282	1,877,975		5.57	%		5.55	%	126,193	1,785,269

Variable Rate Mortgage Loans
Christiana Center⁽²⁾⁽³⁾	Bank	4,635	—	4,635		2.12	%		2.12	%	860	4,257	June 2012
Paxton Towne Centre⁽²⁾⁽⁵⁾	Bank	4,000	—	4,000		2.27	%		2.27	%	91	4,000	July 2012
Pavilion East Associates	Bank	3,773	—	3,773		3.02	%		3.02	%	200	3,708	Aug 2012
New River Valley Mall^(2)(6)(7)	Bank	3,050	—	3,050		3.32	%		3.32	%	101	3,050	Jan 2013
801 Market Street⁽²⁾⁽⁸⁾	Bank	2,494	—	2,494		2.36	%		2.36	%	685	—	Jul 2016

Total Variable Rate Mortgage Loans		17,952	—	17,952		2.58	%		2.58	%	1,937	15,015

Total Mortgage Loans		$1,895,645	$282	$1,895,927		5.54	%		5.52	%	$128,130	$1,800,284

CONSOLIDATED MORTGAGE LOANS		$1,691,099	$282	$1,691,381		5.56	%		5.54	%	$114,739	$1,626,553
UNCONSOLIDATED MORTGAGE LOANS		204,546	—	204,546		5.38	%		5.38	%	13,391	173,731
EXCHANGEABLE NOTES⁽¹⁰⁾		136,900	(849)	136,051		4.00	%		5.87	%	5,476	136,900	June 2012
2010 CREDIT FACILITY - FIXED RATE^(11)(12)(13)		190,000	—	190,000		5.83	%		5.83	%	11,073	190,000	Mar 2014
2010 CREDIT FACILITY - VARIABLE RATE^(11)(12)		145,000	—	145,000		4.32	%		4.32	%	6,264	145,000	Mar 2014

Total		$2,367,545	$(567)	$2,366,978		5.40	%		5.49	%	$150,943	$2,272,184

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

EFFECTIVE INTEREST RATE		$2,367,545	$(567)	$2,366,978		5.40	%		5.87	%	$150,943	$2,272,184

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

⁽⁴⁾	A portion of the mortgage loan bears interest at a variable rate. See Variable Rate Mortgage Loans section of this table.

⁽⁵⁾	The mortgage loan has two one year extension options. The first option was exercised to extend the maturity date to July 2012.

⁽⁶⁾	The mortgage loan has one one year extension option.

⁽⁷⁾	The mortgage loan was refinanced in January 2012. The new mortgage loan has a term of seven years and expires in January 2019.

⁽⁸⁾	The mortgage loan has two one year extension options.

⁽⁹⁾	The mortgage loan has one five year extension option.

⁽¹⁰⁾	The marked to market interest rate includes the effect of deferred financing fee amortization and debt discount amortization.

⁽¹¹⁾	Secured by first mortgage liens on 20 properties. See page 29 for property detail.

⁽¹²⁾	The 2010 Credit Facility consists of the 2010 Term Loan, with a balance of $240,000 and the Revolving Facility, with a balance of $95,000. The total available to borrow against the Revolving Facility is $155,000.

⁽¹³⁾

As of December 31, 2011, 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 becomes 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 is subject to a LIBOR cap with a strike price of 2.50%. The LIBOR cap will mature in April 2012.

Page 28

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios⁽¹⁾


	December 31, 2011

Consolidated Liabilities to Gross Asset Value		66.87	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 70%

EBITDA to Interest Expense		1.91
EBITDA may not be less than 1.60 to 1.00

Adjusted EBITDA to Fixed Charges		1.60
Adjusted EBITDA may not be less than 1.35 to 1.00

Corporate Debt Yield		11.00	%
The ratio of EBITDA to total indebtedness may not be less than 9.50%.

Facility Debt Yield		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%.

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Pennsylvania Real Estate Investment Trust

Shareholder Information


Ten Largest Institutional Shareholders:	Common Shares Held ⁽¹⁾
The Vanguard Group, Inc.		5,636,097
BlackRock Fund Advisors		4,468,542
Dreman Value Management LLC		2,526,920
State Street Global Advisors		1,788,029
Deutsche Investment Management Americas, Inc.		1,761,275
JPMorgan Asset Management, Inc.		1,324,041
Pacific Heights Asset Management LLC		1,275,000
Northern Trust Investments		1,219,387
Brookfield Investment Management, Inc.		1,008,351
Numeric Investors LLC		761,400

*TOTAL of Ten Largest Institutional:*		21,769,042
*TOTAL of all Institutional Holders:*		38,394,134
*Ten Largest as % of Total Institutional:*		56.7	%

⁽¹⁾	Based on 13F and 13G filings as of December 31, 2011 or most recent filings.


Breakdown of Share & Unit Ownership: Shares Held	Most Recent		% of Outstanding			December 31, 2010
Institutional⁽¹⁾		38,394,134		66.2	%		38,639,075
Retail⁽²⁾		14,547,505		25.1	%		13,992,951
Insiders⁽³⁾		5,064,204		8.7	%		5,133,095

*TOTAL*		58,005,843		100.0	%		57,765,121

⁽¹⁾	Based on 13F and 13G filings as of December 31, 2011 or most recent filings.

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

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

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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 income before gains and losses on sales of operating properties and extraordinary items (computed in accordance with GAAP); plus real estate depreciation; plus or minus adjustments for unconsolidated partnerships to reflect funds from operations on the same basis. We compute 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. NAREIT guidance issued in 2003 provides that excluding impairment write downs of depreciable real estate is consistent with the definition of FFO. Certain regulatory staff had indicated, however, a view that impairment write downs were required to be included in FFO. In late 2011, NAREIT updated its guidance to reflect that certain regulatory staff has conveyed that it no longer holds that view, and NAREIT reiterated its original guidance that excluding such impairments is consistent with the NAREIT definition. In this report, prior period FFO amounts have been revised to reflect this updated NAREIT guidance regarding impairment write downs.

We use FFO and FFO per diluted share and OP Unit in measuring our performance against peers and as one of the performance measures for determining incentive compensation amounts earned under certain of our performance-based executive compensation programs. 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 us.

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

Net Operating Income (NOI)

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

The Company believes that net operating income is helpful to management and investors as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. NOI excludes interest and other income, general and administrative expenses, interest expense, depreciation and amortization, gains on sales of interests in real estate, gains or sales of non-operating real estate, gains on sales of discontinued operations, gain on extinguishment of debt, impairment losses, project costs and other expenses

Funds Available for Distribution (FAD)

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

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

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