PENNSYLVANIA REAL ESTATE INVESTMENT TRUST - FORM 8-K - EX-99.1

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8-K - FORM 8-K - PENNSYLVANIA REAL ESTATE INVESTMENT TRUST	d524533d8k.htm

Exhibit 99.1

Pennsylvania Real Estate Investment Trust ^®

LOGO

Supplemental Financial and Operating Information

Quarter Ended March 31, 2013

www.preit.com

NYSE: PEI

NYSE: PEIPRA, PEIPRB

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

March 31, 2013

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 March 31, 2013 and March 31, 2012			4
Statement of Net Operating Income-Quarters Ended March 31, 2013 and March 31, 2012			5
Computation of Earnings Per Share			6
Funds From Operations and Funds Available for Distribution-Quarters Ended March 31, 2013 and March 31, 2012			7

*Operating Statistics*
Leasing Activity Summary			8
Summarized Sales and Rent Per Square Foot and Occupancy Percentages			9
Mall Occupancy Percentage and Sales Per Square Foot			10
Strip and Power Center Occupancy Percentages			11
Top Twenty Tenants			12
Lease Expirations			13
Property Information			14
Department Store Lease Expirations			16

*Balance Sheet*
Condensed Balance Sheet-Proportionate Consolidation Method			18
Investment in Real Estate			19
Capital Expenditures			21
Debt Analysis			22
Debt Schedule			23
Selected Debt Ratios			24
Definitions			25

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. In particular, PREIT’s business might be materially and adversely affected by uncertainties affecting real estate businesses generally as well as the following, among other factors: PREIT’s substantial debt and stated value of preferred shares and our high leverage ratio; constraining leverage, interest and tangible net worth covenants under the 2010 Credit Facility; potential losses on impairment of certain long-lived assets, such as real estate, or intangible assets, such as goodwill; potential losses on impairment of assets that we might be required to record in connection with any dispositions of assets; recent changes to our corporate management team and any resulting modifications to our business strategies; 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; current economic conditions and their effect on employment and consumer confidence and spending, and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions and on our cash flows, and the value and potential impairment of our properties; 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; general economic, financial and political conditions, including credit and capital market conditions, changes in interest rates or unemployment; changes in the retail industry, including consolidation and store closings, particularly among anchor tenants; the effects of online shopping and other uses of technology on our retail tenants; our ability to maintain and increase property occupancy, sales and rental rates, in light of the relatively high number of leases that have expired or are expiring in the next two years; increases in operating costs that cannot be passed on to tenants; risks relating to development and redevelopment activities; concentration of our properties in the Mid-Atlantic region; changes in local market conditions such as the supply of or demand for retail space, or other competitive factors; potential dilution from any capital raising transactions; possible environmental liabilities; our ability to obtain insurance at a reasonable costs; and existence of complex regulations, including those relating to our status as a REIT, and the adverse consequences if we were to fail as a REIT. 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, 2012. 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. The Company currently owns interests in 46 retail properties, 42 of which are operating retail properties, three are development properties, and one property is classified as held for sale. The 42 operating retail properties have a total of 30.7 million square feet and include 36 enclosed malls and six strip and power centers. The operating properties are located in 12 states in the eastern half of the United States, primarily in the Mid-Atlantic region. 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:

Heather Crowell, Vice President of Corporate Communications

200 South Broad Street

Philadelphia, PA 19102

Telephone: (215) 875-0735

Fax: (215) 546-2504

Email: crowellh@preit.com


Research Coverage

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

Barclays Capital	Ross Smotrich	(212) 526-2306

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

Discern	David Wiggington	(646) 862-4177

Evercore Partners	Ben Yang	(415) 229-8070

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

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

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

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

Pennsylvania Real Estate Investment Trust

Press Release Announcements

Dividends and Distributions:

February 21, 2013 - PREIT announced the Board of Trustees of the Company declared a quarterly cash dividend of $0.18 per common share, $0.515625 per share dividend for Series A preferred shares, and $0.327778 per share dividend for Series B preferred shares.

January 17, 2013 - PREIT announced the tax status of its distributions per share paid during 2012.

Acquisitions, dispositions, development and redevelopment activities:

April 17, 2013 - PREIT announced it completed the acquisition of 907 Market Street.

February 22, 2013 - PREIT announced that Main Line Health will open an ambulatory health care facility at Exton Square Mall in Exton, Pennsylvania.

February 12, 2013 - PREIT announced it has completed the sale of Orlando Fashion Square in Orlando, Florida.

January 14, 2013 - PREIT announced it has completed the sale of Paxton Towne Centre, a power center located in Harrisburg, Pennsylvania.

January 10, 2013 - PREIT announced it has completed the sale of Phillipsburg Mall in Phillipsburg, New Jersey.

Financing activities:

April 18, 2013 - PREIT announced it has entered into a new Credit Agreement.

March 11, 2013 - PREIT announced it has completed the refinancing of Dartmouth Mall in Dartmouth, Massachusettes and paid off the mortgage loan balance on Moorestown Mall in Moorestown, New Jersey.

February 14, 2013 - PREIT announced it has completed the refinancing of Viewmont Mall, Francis Scott Key Mall and Lycoming Mall.

Other activities:

March 20, 2013 - PREIT scheduled its First Quarter earnings call for Tuesday, April 23, 2013.

March 4, 2013 - PREIT announced it will present at the Citi 2013 Global Property CEO Conference in Hollywood, Florida on March 6, 2013.

February 25, 2013 - PREIT reported its Fourth Quarter 2012 results.

January 15, 2013 - PREIT scheduled its Fourth Quarter earnings call for Tuesday, February 26, 2013.

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

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands, except per share amounts)


	Quarter Ended March 31,						Year Ended December 31,
	2013			2012			2012			2011
TRADING INFORMATION
Common Shares
High Price per share	$	19.86		$	15.74		$	17.90		$	17.34
Low Price per share	$	17.77		$	10.49		$	10.49		$	6.50
Closing Share Price (at the end of period)	$	19.39		$	15.27		$	17.64		$	10.44

Series A Preferred Shares
High Price per share	$	27.55		$	—		$	27.33		$	—
Low Price per share	$	25.76		$	—		$	24.95		$	—
Closing Share Price (at the end of period)	$	26.57		$	—		$	26.28		$	—

Series B Preferred Shares
High Price per share	$	26.40		$	—		$	25.54		$	—
Low Price per share	$	25.16		$	—		$	24.51		$	—
Closing Share Price (at the end of period)	$	25.69		$	—		$	25.27		$	—

MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding		56,506			55,531			56,331			55,677
OP Units Outstanding		2,261			2,309			2,301			2,329

Total Common Shares and OP Units Outstanding		58,767			57,840			58,632			58,006


Equity Market Capitalization—Common Shares and OP Units	$	1,139,496		$	883,215		$	1,034,273		$	605,581
Series A Preferred Shares, Nominal Value		115,000			—			115,000			—
Series B Preferred Shares, Nominal Value		86,250			—			86,250			—

Total Equity Market Capitalization	$	1,340,746		$	883,215		$	1,235,523		$	605,581

DEBT CAPITALIZATION⁽¹⁾
Secured Debt Balance⁽²⁾⁽³⁾	$	2,037,720		$	2,225,189		$	2,101,769		$	2,230,645
Unsecured Debt Balance⁽⁴⁾		—			136,900			—			136,900

Debt Capitalization		2,037,720			2,362,089			2,101,769			2,367,545

TOTAL MARKET CAPITALIZATION	$	3,378,466		$	3,245,304		$	3,337,292		$	2,973,126

*Equity Capitalization/Total Market Capitalization*		39.7	%		27.2	%		37.0	%		20.4	%
*Debt Capitalization/Total Market Capitalization*		60.3	%		72.8	%		63.0	%		79.6	%
*Unsecured Debt Balance/Total Debt*		0.0	%		5.8	%		0.0	%		5.8	%

DISTRIBUTIONS PER COMMON SHARE

Ordinary Dividends		⁽⁶	⁾	$	0.15		$	—		$	0.37
Capital Gain Distributions⁽⁵⁾		⁽⁶	⁾		—			—			0.01
Non-Dividend Distributions		⁽⁶	⁾		—			0.63			0.22

Distributions per common share	$	0.18		$	0.15		$	0.63		$	0.60

Annualized Dividend Yield⁽⁷⁾		3.7	%		3.9	%		3.6	%		5.7	%

CAPITAL RESOURCES

Cash and Cash Equivalents	$	38,821		$	36,205		$	38,873		$	27,481

Revolving Facility		250,000			250,000			250,000			250,000
Amount Outstanding		(60,000	)		(55,000	)		—			(95,000	)
Letters of Credit		—			—			—			—

Available Revolving Facility⁽⁸⁾		190,000			195,000			250,000			155,000

TOTAL	$	228,821		$	231,205		$	288,873		$	182,481


Shelf Registration	$	798,750		$	1,000,000		$	798,750		$	1,000,000

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

⁽²⁾	The secured debt balance includes $97,500 in Term Loans outstanding as of March 31, 2013, $182,000 outstanding as of December 31, 2012 and March 31, 2012, and $240,000 outstanding as of December 31, 2011.

⁽³⁾	The secured debt balance includes Revolving Facility balances of $60,000 as of March 31, 2013, $55,000 as of March 31, 2012 and $95,000 as of December 31, 2011.

⁽⁴⁾	The unsecured debt balance includes Exchangeable Notes of $136,900 as of March 31, 2012 and December 31, 2011.

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

⁽⁶⁾	Tax status of 2013 dividend payments will be available in January 2014.

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

⁽⁸⁾	The available Credit Facility borrowings are subject to covenants that may restrict amounts that can be borrowed. On April 17, 2013, the Company entered into the 2013 Revolving Facility.

Pennsylvania Real Estate Investment Trust

Statement of Operations - Quarters Ended March 31, 2013 and March 31, 2012

Proportionate Consolidation Method

(in thousands)


	Quarter Ended March 31, 2013												Quarter Ended March 31, 2012
	Continuing Operations												Continuing Operations
	GAAP			PREIT’s share of unconsolidated partnerships⁽¹⁾			Discontinued operations			Total			GAAP			PREIT’s share of unconsolidated partnerships⁽¹⁾			Discontinued operations			Total
REVENUE:
Base rent	$	69,610		$	6,788		$	2,140		$	78,538		$	66,751		$	6,443		$	5,289		$	78,483
Expense reimbursements		31,106			2,893			486			34,485			30,703			2,751			1,324			34,778
Percentage rent		992			41			16			1,049			896			36			22			954
Lease termination revenue		153			—			—			153			651			61			—			712
Other real estate revenue		3,235			313			104			3,652			3,054			319			166			3,539

Total real estate revenue		105,096			10,035			2,746			117,877			102,055			9,610			6,801			118,466
Other income		888			—			—			888			762			—			—			762

Total revenue		105,984			10,035			2,746			118,765			102,817			9,610			6,801			119,228

EXPENSES:
Operating expenses:
CAM and real estate taxes		(35,444	)		(2,228	)		(1,085	)		(38,757	)		(33,576	)		(2,201	)		(2,633	)		(38,410	)
Utilities		(5,119	)		(167	)		(21	)		(5,307	)		(5,237	)		(165	)		(53	)		(5,455	)
Other operating expenses		(4,295	)		(592	)		(338	)		(5,225	)		(4,359	)		(581	)		(538	)		(5,478	)

Total operating expenses		(44,858	)		(2,987	)		(1,444	)		(49,289	)		(43,172	)		(2,947	)		(3,224	)		(49,343	)

Depreciation and amortization		(33,982	)		(1,829	)		—			(35,811	)		(31,971	)		(1,851	)		(1,748	)		(35,570	)
Other expenses:
General and administrative expenses		(8,856	)		—			—			(8,856	)		(9,885	)		—			—			(9,885	)
Provision for employee separation expense		(1,279	)		—			—			(1,279	)		—			—			—			—
Project costs and other expenses		(202	)		—			—			(202	)		(358	)		—			—			(358	)

Total other expenses		(10,337	)		—			—			(10,337	)		(10,243	)		—			—			(10,243	)

Interest expense, net⁽²⁾		(27,337	)		(2,767	)		(671	)		(30,775	)		(30,719	)		(2,819	)		(950	)		(34,488	)

Total expenses		(116,514	)		(7,583	)		(2,115	)		(126,212	)		(116,105	)		(7,617	)		(5,922	)		(129,644	)

Loss before equity in income of partnerships and discontinued operations		(10,530	)		2,452			631			(7,447	)		(13,288	)		1,993			879			(10,416	)
Equity in income of partnerships		2,452			(2,452	)		—			—			1,993			(1,993	)		—			—

Loss from continuing operations		(8,078	)		—			631			(7,447	)		(11,295	)		—			879			(10,416	)
Discontinued operations:
Operating results from discontinued operations		631			—			(631	)		—			879			—			(879	)		—
Gains on sales of discontinued operations		33,254			—			—			33,254			—			—			—			—

Income from discontinued operations		33,885			—			(631	)		33,254			879			—			(879	)		—

Net income (loss)		25,807			—			—			25,807			(10,416	)		—			—			(10,416	)
Less: net (income) loss attributed to noncontrolling interest		(1,005	)		—			—			(1,005	)		419			—			—			419

Net income (loss) attributable to PREIT	$	24,802		$	—		$	—		$	24,802		$	(9,997	)	$	—		$	—		$	(9,997	)
Less: preferred share dividends		(3,962	)		—			—			(3,962	)		—			—			—			—

Net income (loss) attributable to PREIT common shareholders	$	20,840		$	—		$	—		$	20,840		$	(9,997	)	$	—		$	—		$	(9,997	)

⁽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 $65 and $536 for the quarters ended March 31, 2013 and 2012, respectively.

Pennsylvania Real Estate Investment Trust

Statement of Net Operating Income⁽¹⁾

(in thousands)


	Quarter Ended March 31, 2013									Quarter Ended March 31, 2012
SAME STORE RETAIL/OTHER	Same			Other			Total			Same			Other			Total
Real estate revenue:
Base rent	$	76,043		$	2,495		$	78,538		$	72,847		$	5,636		$	78,483
Expense reimbursements		33,990			495			34,485			33,439			1,339			34,778
Percentage rent		1,032			17			1,049			932			22			954
Lease termination revenue		153			—			153			712			—			712
Other real estate revenue		3,429			223			3,652			3,248			291			3,539

TOTAL REAL ESTATE REVENUE		114,647			3,230			117,877			111,178			7,288			118,466

Operating expenses:
CAM and real estate taxes		(37,280	)		(1,477	)		(38,757	)		(35,359	)		(3,051	)		(38,410	)
Utilities		(5,285	)		(22	)		(5,307	)		(5,402	)		(53	)		(5,455	)
Other operating expenses		(4,883	)		(342	)		(5,225	)		(4,904	)		(574	)		(5,478	)

TOTAL OPERATING EXPENSES		(47,448	)		(1,841	)		(49,289	)		(45,665	)		(3,678	)		(49,343	)

NET OPERATING INCOME	$	67,199		$	1,389		$	68,588		$	65,513		$	3,610		$	69,123


	Variance			Percentage
Same store NOI variance
Same store NOI	$	1,686			2.6	%
Same store NOI excluding lease terminations	$	2,245			3.5	%

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

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share

(in thousands, except per share amounts)


	Quarter Ended March 31,
	2013			2012
Loss from continuing operations	$	(8,078	)	$	(11,295	)
Noncontrolling interest		314			454
Dividends on preferred shares		(3,962	)		—
Dividends on unvested restricted shares		(108	)		(61	)

Loss used to calculate earnings per share - basic and diluted	$	(11,834	)	$	(10,902	)

Income from discontinued operations	$	33,885		$	879
Noncontrolling interest in discontinued operations		(1,319	)		(35	)

Income from discontinued operations used to calculate earnings per share - basic and diluted	$	32,566		$	844

Basic and diluted earnings (loss) per share
Loss from continuing operations	$	(0.21	)	$	(0.20	)
Income from discontinued operations		0.58			0.02

	$	0.37		$	(0.18	)

Weighted average common shares outstanding		56,372			55,584

Weighted average unvested restricted shares		(634	)		(676	)

Weighted average shares outstanding - basic		55,738			54,908

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

Total weighted average shares outstanding - diluted		55,738			54,908

⁽¹⁾

The Company had net losses from continuing operations for all periods presented. Therefore, the effect of common share equivalents of 706 and 646 for the quarters ended March 31, 2013 and 2012, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive.

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)


	Quarter Ended March 31, 2013												Quarter Ended March 31, 2012
	Continuing Operations												Continuing Operations
	Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total			Consolidated			PREIT’s share of unconsolidated partnerships			Discontinued operations			Total
FUNDS FROM OPERATIONS (FFO)
Real estate revenue	$	105,096		$	10,035		$	2,746		$	117,877		$	102,055		$	9,610		$	6,801		$	118,466
Operating expenses		(44,858	)		(2,987	)		(1,444	)		(49,289	)		(43,172	)		(2,947	)		(3,224	)		(49,343	)

NET OPERATING INCOME		60,238			7,048			1,302			68,588			58,883			6,663			3,577			69,123
General and administrative expenses		(8,856	)		—			—			(8,856	)		(9,885	)		—			—			(9,885	)
Provision for employee separation expense		(1,279	)		—			—			(1,279	)		—			—			—			—
Other income		888			—			—			888			762			—			—			762
Project costs and other expenses		(202	)		—			—			(202	)		(358	)		—			—			(358	)
Interest expense, net		(27,337	)		(2,767	)		(671	)		(30,775	)		(30,719	)		(2,819	)		(950	)		(34,488	)
Depreciation on non real estate assets		(226	)		—			—			(226	)		(192	)		—			—			(192	)
Dividends on preferred shares		(3,962	)		—			—			(3,962	)		—			—			—			—

FFO		19,264			4,281			631			24,176			18,491			3,844			2,627			24,962
Depreciation on real estate assets		(33,756	)		(1,829	)		—			(35,585	)		(31,779	)		(1,851	)		(1,748	)		(35,378	)
Equity in income of partnerships		2,452			(2,452	)		—			—			1,993			(1,993	)		—			—
Operating results from discontinued operations		631			—			(631	)		—			879			—			(879	)		—
Gains on sales of discontinued operations		33,254			—			—			33,254			—			—			—			—
Dividends on preferred shares		3,962			—			—			3,962			—			—			—			—

Net loss	$	25,807		$	—		$	—		$	25,807		$	(10,416	)	$	—		$	—		$	(10,416	)

FFO	$	19,264		$	4,281		$	631		$	24,176		$	18,491		$	3,844		$	2,627		$	24,962
Provision for employee separation expenses		1,279			—			—			1,279			—			—			—			—
Accelerated amortization of deferred financing costs		914			—			—			914			—			—			—			—
Gain on hedge ineffectiveness		(464	)		—			—			(464	)		—			—			—			—

FFO AS ADJUSTED	$	20,993		$	4,281		$	631		$	25,905		$	18,491		$	3,844		$	2,627		$	24,962


FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	20,993		$	4,281		$	631		$	25,905		$	18,491		$	3,844		$	2,627		$	24,962
Adjustments:
Straight line rent		(389	)		(43	)		22			(410	)		(186	)		39			33			(114	)
Recurring capital expenditures		(421	)		(24	)		—			(445	)		(135	)		(99	)		—			(234	)
Tenant allowances		(1,746	)		(101	)		—			(1,847	)		(1,916	)		(15	)		—			(1,931	)
Capitalized leasing costs		(1,537	)		—			—			(1,537	)		(1,325	)		—			—			(1,325	)
Amortization of mortgage loan premium		—			—			—			—			(82	)		—			—			(82	)
Amortization of above- and below-market lease intangibles		(62	)		(28	)		—			(90	)		(117	)		(32	)		2			(147	)
Amortization of exchangeable notes debt discount		—			—			—			—			507			—			—			507

FAD	$	16,838		$	4,085		$	653		$	21,576		$	15,237		$	3,737		$	2,662		$	21,636

Weighted average number of shares outstanding											55,738												54,908
Weighted average effect of full conversion of OP Units											2,284												2,328
Effect of common share equivalents											706												646

Total weighted average shares outstanding, including OP Units											58,728												57,882


FFO PER DILUTED SHARE AND OP UNIT										$	0.41											$	0.43

FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED										$	0.44											$	0.43

FAD PER DILUTED SHARE AND OP UNIT										$	0.37											$	0.37


DIVIDEND PER COMMON SHARE										$	0.18											$	0.15


PAYOUT RATIOS

Payout ratio of FFO											40.9	%⁽¹⁾											68.9	%⁽²⁾

Payout ratio of FFO as adjusted											36.0	%⁽¹⁾											33.4	%⁽²⁾

Payout ratio of FAD											69.7	%⁽¹⁾											57.5	%⁽²⁾

⁽¹⁾	Twelve months ended March 31, 2013.

⁽²⁾	Twelve months ended March 31, 2012.

Pennsylvania Real Estate Investment Trust

2013 Leasing Activity Summary


					Avg Gross Rent psf				Change in Gross Rent psf						Annualized Tenant Improvements psf⁽²⁾
	Number		GLA		Previous		New⁽¹⁾		Dollar			%			Annualized Tenant Improvements psf⁽²⁾
New Leases: ⁽³⁾

1st Quarter		33		95,895		N/A	$	39.60	$	39.60			N/A		$	7.82

Total/Average		33		95,895		N/A	$	39.60	$	39.60			N/A		$	7.82

Renewal - non-anchor tenants 10k sf and under: ⁽⁴⁾

1st Quarter		73		216,780	$	35.21	$	36.93	$	1.72			4.9	%	$	0.04

Total/Average		73		216,780	$	35.21	$	36.93	$	1.72			4.9	%	$	0.04

Renewal - non-anchor tenants greater than 10k sf: ⁽⁴⁾

1st Quarter		1		11,521	$	7.49	$	7.23	$	(0.26	)		(3.5	%)	$	—

Total/Average		1		11,521	$	7.49	$	7.23	$	(0.26	)		(3.5	%)	$	—

Anchor Renewal:

1st Quarter		1		83,835	$	8.58	$	9.10	$	0.52			6.1	%	$	—

Total/Average		1		83,835	$	8.58	$	9.10	$	0.52			6.1	%	$	—

⁽¹⁾	New rent is the initial amount payable upon rent commencement.

⁽²⁾	These leasing costs are presented as annualized costs per square foot and are spread uniformly over the initial lease term.

⁽³⁾	This category includes newly constructed and recommissioned space.

⁽⁴⁾	This category includes expansions and lease extensions.

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages


	March 31, 2013																March 31, 2012																Change
	% Rolling 12 Mo. NOI			Avg Comp Sales		Avg Gross Rent⁽¹⁾⁽²⁾		Occ Cost			Occupancy						% Rolling 12 Mo. NOI			Avg Comp Sales		Avg Gross Rent⁽¹⁾⁽²⁾		Occ Cost			Occupancy						Avg Comp Sales			Avg Gross Rent⁽¹⁾⁽²⁾			Occ Cost			Occupancy
											Occupancy																Occupancy															Occupancy
											Total			Non- Anchor													Total			Non-Anchor												Total			Non- Anchor
Premier Malls		32.1	%	$	535	$	64.37		12.5	%		96.4	%		94.6	%		31.2	%	$	532	$	62.40		12.4	%		95.2	%		93.4	%		0.6	%		3.2	%		0.1	%		1.2	%		1.2	%
Core Growth Malls		46.1	%	$	358	$	41.71		12.6	%		93.2	%		90.2	%		46.7	%	$	359	$	41.38		12.6	%		91.1	%		87.6	%		-0.3	%		0.8	%		0.0	%		2.1	%		2.6	%
Opportunistic Malls		10.9	%	$	270	$	26.25		10.9	%		92.0	%		85.2	%		11.1	%	$	275	$	26.68		10.7	%		91.2	%		85.1	%		-1.8	%		-1.6	%		0.2	%		0.8	%		0.1	%
Non Core Malls		4.4	%	$	242	$	25.07		11.6	%		91.3	%		86.3	%		4.3	%	$	247	$	26.11		11.9	%		89.9	%		79.5	%		-2.0	%		-4.0	%		-0.3	%		1.4	%		6.8	%

Total Malls		93.5	%	$	381	$	43.16		12.3	%		93.4	%		89.9	%		93.3	%	$	381	$	42.66		12.3	%		91.7	%		87.7	%		0.0	%		1.2	%		0.0	%		1.7	%		2.2	%
Strip and Power Centers		4.5	%		N/A	$	18.14		N/A			94.0	%		91.9	%		4.6	%		N/A	$	17.96		N/A			94.5	%		92.5	%		N/A			1.0	%		N/A			-0.5	%		-0.6	%

Total Retail Properties		98.0	%		N/A	$	38.92		N/A			93.4	%		90.1	%		97.9	%		N/A	$	38.43		N/A			91.9	%		88.3	%		N/A			1.3	%		N/A			1.5	%		1.9	%
Held for Sale Properties⁽³⁾		1.8	%		N/A	$	23.57		N/A			100.0	%		100.0	%		1.9	%		N/A	$	23.10		N/A			98.8	%		96.8	%		N/A			2.0	%		N/A			1.2	%		3.2	%
Other Properties		0.2	%		N/A		N/A		N/A			N/A			N/A			0.2	%		N/A		N/A		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A

Total Portfolio		100.0	%			$	38.71					93.5	%		90.2	%		100.0	%			$	38.23					92.0	%		88.3	%					1.3	%					1.5	%		1.9	%

⁽¹⁾	Average gross rent for malls includes all non-anchor space owned by the Company and leased to tenants that lease individual spaces of 10,000 square feet or less. Average gross rent for strip and power centers includes all non-anchor space owned by the Company regardless of size.

⁽²⁾	Average gross rent for mall tenants greater than 10,000 sf was $16.76 per square foot as of March 31, 2013 and $16.32 per square foot as of March 31, 2012.

⁽³⁾	Includes Christiana Center.

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot


	March 31, 2013											March 31, 2012											Change
	Avg Comp Sales⁽¹⁾		Total Occ %			Non Anchor Occup. %			Occup. Cost Ratio⁽¹⁾			Avg Comp Sales⁽¹⁾		Total Occ %			Non Anchor Occup. %			Occup. Cost Ratio⁽¹⁾			Avg Comp Sales⁽¹⁾			Total Occ %			Non Anchor Occup. %			Occup. Cost Ratio⁽¹⁾
Premier Malls
Cherry Hill Mall	$	644		92.9	%		91.5	%		12.9	%	$	623		93.5	%		92.2	%		12.8	%		3.4	%		-0.6	%		-0.7	%		0.1	%
Lehigh Valley Mall		582		97.1	%		95.2	%		11.5	%		576		96.2	%		94.7	%		11.1	%		1.0	%		0.9	%		0.5	%		0.4	%
Woodland Mall		531		95.9	%		95.9	%		11.8	%		547		91.3	%		91.3	%		12.2	%		-2.9	%		4.6	%		4.6	%		-0.4	%
Jacksonville Mall		479		99.8	%		99.6	%		11.6	%		526		97.6	%		95.3	%		10.6	%		-8.9	%		2.2	%		4.3	%		1.0	%
Dartmouth Mall		428		96.0	%		93.4	%		11.4	%		425		96.9	%		94.9	%		11.2	%		0.7	%		-0.9	%		-1.5	%		0.2	%
Willow Grove Park		410		97.9	%		95.7	%		15.8	%		395		96.0	%		93.4	%		16.1	%		3.8	%		1.9	%		2.3	%		-0.3	%

Premier Malls Subtotal	$	535		96.4	%		94.6	%		12.5	%	$	532		95.2	%		93.4	%		12.4	%		0.6	%		1.2	%		1.2	%		0.1	%


Core Growth Malls
Springfield Mall	$	394		93.1	%		93.1	%		14.3	%	$	380		86.6	%		86.6	%		14.6	%		3.7	%		6.5	%		6.5	%		-0.3	%
Patrick Henry Mall		392		97.0	%		94.1	%		14.4	%		389		94.3	%		89.0	%		14.4	%		0.8	%		2.7	%		5.1	%		0.0	%
Wyoming Valley Mall		387		97.8	%		93.7	%		12.3	%		380		96.3	%		89.3	%		11.9	%		1.8	%		1.5	%		4.4	%		0.4	%
Valley View Mall		385		93.8	%		91.5	%		11.6	%		378		95.0	%		93.2	%		11.8	%		1.9	%		-1.2	%		-1.7	%		-0.2	%
The Mall at Prince Georges		381		98.8	%		97.4	%		14.5	%		387		96.9	%		93.4	%		14.7	%		-1.6	%		1.9	%		4.0	%		-0.2	%
Capital City Mall		377		98.2	%		96.9	%		11.7	%		357		97.1	%		95.1	%		11.9	%		5.6	%		1.1	%		1.8	%		-0.2	%
Valley Mall		376		95.5	%		92.3	%		11.2	%		370		96.9	%		94.7	%		10.9	%		1.6	%		-1.4	%		-2.4	%		0.3	%
Viewmont Mall		370		98.7	%		96.6	%		12.7	%		390		98.3	%		95.5	%		12.5	%		-5.1	%		0.4	%		1.1	%		0.2	%
Crossroads Mall		364		94.6	%		88.5	%		9.4	%		355		95.9	%		91.2	%		9.0	%		2.5	%		-1.3	%		-2.7	%		0.4	%
Moorestown Mall		350		88.0	%		69.9	%		14.4	%		364		90.4	%		78.4	%		14.3	%		-3.8	%		-2.4	%		-8.5	%		0.1	%
The Gallery at Market East		350		72.1	%		81.5	%		14.5	%		381		61.6	%		78.3	%		14.1	%		-8.1	%		10.5	%		3.2	%		0.4	%
Francis Scott Key Mall		348		96.6	%		94.4	%		11.1	%		347		95.9	%		93.3	%		11.6	%		0.3	%		0.7	%		1.1	%		-0.5	%
Magnolia Mall		340		99.2	%		98.2	%		11.7	%		327		98.0	%		95.5	%		12.5	%		4.0	%		1.2	%		2.7	%		-0.8	%
Exton Square Mall		328		93.7	%		85.7	%		13.6	%		338		90.8	%		79.9	%		13.3	%		-3.0	%		2.9	%		5.8	%		0.3	%
Gadsden Mall		326		94.4	%		86.0	%		10.4	%		317		93.1	%		82.8	%		10.1	%		2.8	%		1.3	%		3.2	%		0.3	%
Cumberland Mall		325		91.6	%		86.1	%		13.1	%		322		92.8	%		88.2	%		13.0	%		0.9	%		-1.2	%		-2.1	%		0.1	%
Plymouth Meeting Mall		323		90.2	%		85.1	%		10.2	%		327		84.5	%		76.4	%		10.5	%		-1.2	%		5.7	%		8.7	%		-0.3	%
Logan Valley Mall		321		97.3	%		93.6	%		11.4	%		322		94.1	%		86.0	%		11.4	%		-0.3	%		3.2	%		7.6	%		0.0	%

Core Growth Malls Subtotal	$	358		93.2	%		90.2	%		12.6	%	$	359		91.1	%		87.6	%		12.6	%		-0.3	%		2.1	%		2.6	%		0.0	%


Opportunistic Malls
Palmer Park Mall	$	295		94.5	%		82.4	%		11.9	%	$	297		94.9	%		83.7	%		11.3	%		-0.7	%		-0.4	%		-1.3	%		0.6	%
Wiregrass Commons Mall		295		89.3	%		84.5	%		10.9	%		283		90.5	%		86.3	%		11.0	%		4.2	%		-1.2	%		-1.8	%		-0.1	%
Uniontown Mall		276		95.5	%		89.9	%		10.8	%		287		88.7	%		82.5	%		10.6	%		-3.8	%		6.8	%		7.4	%		0.2	%
New River Valley Mall		271		98.9	%		98.2	%		10.9	%		291		96.9	%		94.8	%		10.4	%		-6.9	%		2.0	%		3.4	%		0.5	%
Lycoming Mall		267		95.8	%		92.1	%		10.7	%		275		96.3	%		93.1	%		10.0	%		-2.9	%		-0.5	%		-1.0	%		0.7	%
Nittany Mall		258		95.4	%		90.6	%		10.6	%		274		96.2	%		92.2	%		10.7	%		-5.8	%		-0.8	%		-1.6	%		-0.1	%
Washington Crown Center		256		87.2	%		76.4	%		10.6	%		258		90.5	%		82.5	%		10.9	%		-0.8	%		-3.3	%		-6.1	%		-0.3	%
Voorhees Town Center		220		67.1	%		66.7	%		10.8	%		218		67.0	%		66.5	%		12.1	%		0.9	%		0.1	%		0.2	%		-1.3	%

Opportunistic Malls Subtotal	$	270		92.0	%		85.2	%		10.9	%	$	275		91.2	%		85.1	%		10.7	%		-1.8	%		0.8	%		0.1	%		0.2	%


Non Core Malls
North Hanover Mall	$	250		84.8	%		88.6	%		12.1	%	$	265		93.8	%		85.2	%		12.4	%		-5.7	%		-9.0	%		3.4	%		-0.3	%
Beaver Valley Mall		248		94.8	%		88.7	%		12.6	%		245		91.1	%		81.0	%		13.2	%		1.2	%		3.7	%		7.7	%		-0.6	%
South Mall		246		93.4	%		89.9	%		12.5	%		255		86.6	%		79.6	%		12.2	%		-3.5	%		6.8	%		10.3	%		0.3	%
Chambersburg Mall		225		88.4	%		75.3	%		9.2	%		230		87.1	%		72.5	%		9.2	%		-2.2	%		1.3	%		2.8	%		0.0	%

Non Core Malls Subtotal	$	242		91.3	%		86.3	%		11.6	%	$	247		89.9	%		79.5	%		11.9	%		-2.0	%		1.4	%		6.8	%		-0.3	%


Same Store Malls weighted average	$	381		93.4	%		89.9	%		12.3	%	$	381		91.7	%		87.7	%		12.3	%		0.0	%		1.7	%		2.2	%		0.0	%

Sold Properties		N/A		N/A			N/A			N/A		$	246		88.2	%		74.2	%		13.6	%		N/A			N/A			N/A			N/A

Total Reported weighted average	$	381		93.4	%		89.9	%		12.3	%	$	376		91.5	%		87.0	%		12.3	%		1.4	%		1.9	%		2.9	%		0.0	%

⁽¹⁾	Based on reported sales by all comparable non-anchor tenants that lease individual spaces of 10,000 square feet or less and have occupied the space for at least 24 months.

Pennsylvania Real Estate Investment Trust

Strip and Power Center Occupancy Percentages


	March 31, 2013						March 31, 2012						Change
	Occupancy						Occupancy						Occupancy
	Total			Non-Anchor			Total			Non-Anchor			Total			Non-Anchor

Continuing Operations

The Commons at Magnolia		85.7	%		82.0	%		80.4	%		75.6	%		5.3	%		6.4	%

Metroplex Shopping Center		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%		0.0	%

The Court at Oxford Valley		88.6	%		86.9	%		91.7	%		90.5	%		-3.1	%		-3.6	%

Red Rose Commons		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%		0.0	%

Springfield Park		90.0	%		71.7	%		90.0	%		71.7	%		0.0	%		0.0	%

Whitehall Mall		93.1	%		85.7	%		93.0	%		85.5	%		0.1	%		0.2	%


Continuing Operations Subtotal		94.0	%		91.9	%		94.5	%		92.5	%		-0.5	%		-0.6	%


Held for Sale

Christiana Center		100.0	%		100.0	%		98.8	%		96.8	%		1.2	%		3.2	%


Held for Sale Subtotal		100.0	%		100.0	%		98.8	%		96.8	%		1.2	%		3.2	%


Strip and Power Center Weighted Average		94.8	%		92.5	%		95.0	%		92.8	%		-0.2	%		-0.3	%

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants


Tenant⁽¹⁾	Total Number of Locations⁽²⁾		Percentage of Annualized Gross Rent⁽³⁾
Gap, Inc.		42		2.9	%
Limited Brands, Inc.		69		2.8	%
American Eagle Outfitters, Inc.		41		2.8	%
J.C. Penney Company, Inc.		28		2.7	%
Foot Locker, Inc.		61		2.6	%
Sears Holding Corporation		26		1.9	%
Signet Jewelers Limited		37		1.5	%
Zale Corporation		67		1.5	%
Luxottica Group S.p.A.		46		1.4	%
Commonwealth of Pennsylvania		2		1.4	%
Ascena Retail Group, Inc.		45		1.3	%
Abercrombie & Fitch Co.		19		1.3	%
Aeropostale, Inc.		39		1.3	%
Genesco, Inc.		58		1.3	%
Macy’s, Inc.		24		1.1	%
The Children’s Place Retail Stores, Inc.		25		1.1	%
Dick’s Sporting Goods, Inc.		9		1.1	%
Shoe Show, Inc.		29		1.1	%
The Finish Line, Inc.		27		1.1	%
Boscov’s Department Store		9		1.1	%

Total Top 20 Tenants		703		33.3	%

Total Leases		2,878		100.00	%

⁽¹⁾	Tenant includes all brands and concepts of the tenant and includes stores that are PREIT owned and not PREIT owned.

⁽²⁾	Excludes tenants from properties classified as held for sale.

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

Pennsylvania Real Estate Investment Trust

Lease Expirations as of March 31, 2013

(dollars in thousands except psf amounts)


Non-Anchors⁽¹⁾⁽²⁾

			Gross Leasable Area					Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring		Expiring GLA⁽³⁾		Percent of Total			Gross Rent in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year⁽⁴⁾		Percent of PREIT’s Total			Average Expiring Gross Rent psf
2012 and Prior		219		637,791		5.6	%	$	21,332	$	20,303		6.0	%	$	33.45
2013		251		722,590		6.3	%		23,554		21,684		6.4	%		32.60
2014		496		1,591,074		14.0	%		46,391		43,934		13.0	%		29.16
2015		340		1,451,278		12.7	%		45,463		41,440		12.3	%		31.33
2016		336		1,459,345		12.8	%		50,630		45,317		13.4	%		34.69
2017		302		1,068,148		9.4	%		38,532		34,446		10.2	%		36.07
2018		201		1,075,560		9.4	%		35,375		32,220		9.5	%		32.89
2019		147		679,500		6.0	%		24,483		22,934		6.8	%		36.03
2020		126		831,158		7.3	%		23,847		22,400		6.6	%		28.69
2021		122		536,355		4.7	%		18,895		16,924		5.0	%		35.23
2022		127		643,145		5.6	%		20,913		18,599		5.5	%		32.52
Thereafter		109		707,346		6.2	%		19,531		17,937		5.3	%		27.61

Total/Average		2,776		11,403,290		100.0	%	$	368,946	$	338,138		100.0	%	$	32.35


Anchors⁽¹⁾⁽²⁾

			Gross Leasable Area					Annualized Gross Rent
Lease Expiration Year	Number of Leases Expiring⁽⁵⁾		Expiring GLA		Percent of Total			Minimum Gross in Expiring Year		PREIT’s Share of Gross Rent in Expiring Year⁽⁴⁾		Percent of PREIT’s Total			Average Expiring Gross Rent psf
2013		4		317,237		3.1	%	$	845	$	845		1.7	%	$	2.66
2014		13		1,217,378		11.5	%		4,695		4,197		8.4	%		3.86
2015		16		1,515,649		14.3	%		6,955		6,955		13.9	%		4.59
2016		20		1,927,216		18.2	%		7,801		7,801		15.6	%		4.05
2017		11		1,398,035		13.2	%		5,089		4,347		8.7	%		3.64
2018		11		1,130,813		10.7	%		5,169		5,169		10.4	%		4.57
2019		8		905,529		8.6	%		3,080		3,080		6.2	%		3.40
2020		3		301,030		2.9	%		861		861		1.7	%		2.86
2021		3		339,655		3.2	%		2,778		1,389		2.8	%		8.18
2022		4		521,173		4.9	%		2,736		2,736		5.5	%		5.25
Thereafter		9		993,146		9.4	%		12,516		12,516		25.1	%		12.60

Total/Average		102		10,566,861		100.0	%	$	52,525	$	49,896		100.0	%	$	4.97

⁽¹⁾	Only includes owned space.

⁽²⁾	Does not include leases related to properties classified as held for sale.

⁽³⁾	Does not include tenants occupying space under license agreements with initial terms of less than one year. The GLA of these tenants is 312,226 sf.

⁽⁴⁾	Includes PREIT’s proportionate share of tenant rent from partnership properties based on PREIT’s ownership percentage in the respective partnerships.

⁽⁵⁾	Accounts for all contiguous anchor space as one lease.

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2013

(GLA in thousands)


					*Landlord Owned Anchors*																*Anchor Stores Not Owned*														*Non-anchor occupied*
Properties	State	Ownership	Date Acquired	Year Built/ Last Renovated	Nordstrom		Macy’s		jcpenney		Sears		Boscov’s		Bon-Ton⁽¹⁾		Other(s)		Total		Macy’s		jcpenney		Sears		Boscov’s		Bon-Ton		Other(s)		Total		Large Format		Small Shop		*Vacant*		Total GLA

Premier Malls

Cherry Hill Mall	NJ	100%	2003	1961/2009		138		—		—		—		—		—		—		138		305		174		—		—		—		—		479		204		427		59		1,307

Dartmouth Mall	MA	100%	1997	1971/2000		—		—		100		108		—		—		—		208		140		—		—		—		—		—		140		142		159		21		670

Jacksonville Mall	NC	100%	2003	1981/2008		—		—		52		117		—		—		73		242		—		—		—		—		—		—		0		99		147		1		489

Lehigh Valley Mall	PA	50%	1973	1977/2007		—		212		—		—		165		—		—		377		—		207		—		—		—		—		207		183		374		28		1,169

Willow Grove Park	PA	100%	2000-03	1982/2001		40		225		125		—		—		—		—		390		237		—		176		—		—		—		413		54		289		15		1,161

Woodland Mall	MI	100%	2005	1968/1998		—		—		—		—		—		—		—		0		157		255		313		—		—		—		725		147		272		18		1,162



Total Premier Malls						178		437		277		225		165		0		73		1,355		839		636		489		0		0		0		1,964		829		1,668		142		5,958



Core Growth Malls

Capital City Mall	PA	100%	2003	1974/2005		—		—		103		101		—		—		—		204		120		—		—		—		—		—		120		81		200		9		614

Crossroads Mall	WV	100%	2003	1981		—		—		90		87		—		—		78		255		—		—		—		—		—		—		0		74		121		26		476

Cumberland Mall	NJ	100%	2005	1973/2003		—		—		51		—		—		—		213		264		—		—		—		155		—		118		273		200		150		57		944

Exton Square Mall	PA	100%	2003	1973/2000		—		—		118		144		178		—		—		440		181		—		97		—		—		—		278		27		267		49		1,061

Francis Scott Key Mall	MD	100%	2003	1978/1991		—		—		101		121		—		—		—		222		139		—		—		—		—		—		139		141		190		20		712

Gadsden Mall	AL	100%	2005	1974/1990		—		—		88		112		—		—		101		301		—		—		—		—		—		—		0		80		92		28		501

The Gallery at Market East	PA	100%	2003	1977/1990		—		—		—		—		—		—		479		479		—		—		—		—		—		—		0		74		233		303		1,089

Logan Valley Mall	PA	100%	2003	1960/1997		—		150		146		159		—		—		—		455		—		—		—		—		—		—		0		59		246		21		781

Magnolia Mall	SC	100%	1997	1979/2007		—		—		104		91		—		—		148		343		—		—		—		—		—		—		0		99		166		5		613

Moorestown Mall	NJ	100%	2003	1963/2008		—		—		—		206		203		—		—		409		200		—		—		—		—		121		321		15		175		82		1,002

Patrick Henry Mall	VA	100%	2003	1988/2005		—		—		85		—		—		—		195		280		140		—		—		—		—		—		140		38		240		18		716

Plymouth Meeting Mall	PA	100%	2003	1966/2009		—		—		—		—		189		—		65		254		215		—		—		—		—		—		215		198		213		72		952

The Mall at Prince Georges	MD	100%	1998	1959/2004		—		196		149		—		—		—		135		480		—		—		—		—		—		—		0		148		281		11		920

Springfield Mall	PA	50%	2005	1974/1997		—		—		—		—		—		—		—		0		192		—		—		—		—		196		388		10		198		16		612

Valley Mall	MD	100%	2003	1974/1999		—		—		157		—		—		123		—		280		120		—		123		—		—		—		243		115		243		30		911

Valley View Mall	WI	100%	2003	1980/2001		—		—		96		—		—		—		—		96		100		—		113		—		42		—		255		74		159		22		606

Viewmont Mall	PA	100%	2003	1968/2006		—		—		193		193		—		—		—		386		120		—		—		—		—		—		120		83		150		8		747

Wyoming Valley Mall	PA	100%	2003	1971/2006		—		146		173		118		—		155		—		592		—		—		—		—		—		—		0		101		193		20		906


Core Growth Malls						0		492		1,654		1,332		570		278		1,414		5,740		1,527		0		333		155		42		435		2,492		1,617		3,517		797		14,163

(continued on next page)

Pennsylvania Real Estate Investment Trust

Property Information as of March 31, 2013 (continued)

(GLA in thousands)


					*Landlord Owned Anchors*																*Anchor Stores Not Owned*														*Non-anchor occupied*
Properties	State	Ownership	Date Acquired	Year Built/ Last Renovated	Nordstrom		Macy’s		jcpenney		Sears		Boscov’s		Bon-Ton⁽¹⁾		Other(s)		Total		Macy’s		jcpenney		Sears		Boscov’s		Bon-Ton		Other(s)		Total		Large Format		Small Shop		*Vacant*		Total GLA

Opportunistic Malls

Lycoming Mall	PA	100%	2003	1978/2007		—		—		62		130		—		60		81		333		120		—		—		—		—		—		120		182		169		30		834

New River Valley Mall	VA	100%	2003	1988/2007		—		—		50		57		—		—		88		195		—		—		—		—		—		—		0		135		129		5		464

Nittany Mall	PA	100%	2003	1968/1990		—		—		63		98		—		61		—		222		95		—		—		—		—		—		95		13		184		20		534

Palmer Park Mall	PA	100%	1972/2003	1972/1998		—		—		—		—		192		122		—		314		—		—		—		—		—		—		0		0		118		25		457

Uniontown Mall	PA	100%	2003	1972/1990		—		—		63		100		—		80		148		391		—		—		—		—		—		—		0		102		176		31		700

Voorhees Town Center	NJ	100%	2003	1970/2007		—		—		—		—		4		—		—		4		224		—		—		173		—		24		421		67		137		102		731

Washington Crown Center	PA	100%	2003	1969/1999		—		—		—		83		—		78		84		245		140		—		—		—		—		—		140		64		156		68		673

Wiregrass Commons Mall	AL	100%	2003	1986/2008		—		—		—		—		—		—		95		95		—		84		—		—		—		248		332		10		167		32		636


Opportunistic Malls						0		0		238		468		196		401		496		1,799		579		84		0		173		0		272		1,108		573		1,236		313		5,029


Non Core Malls

Beaver Valley Mall	PA	100%	2002	1970/1991		—		—		126		191		194		—		—		511		205		—		—		—		—		—		205		175		213		50		1,154

Chambersburg Mall	PA	100%	2003	1982		—		—		61		56		—		55		70		242		—		—		—		—		—		—		0		20		141		53		456

North Hanover Mall	PA	100%	2003	1967/1999		—		—		99		104		—		—		50		253		—		—		—		—		—		—		0		21		109		69		452

South Mall	PA	100%	2003	1975/1992		—		—		—		—		—		102		38		140		—		—		—		—		—		—		0		149		90		27		406


Non Core Malls						0		0		286		351		194		157		158		1,146		205		0		0		0		0		0		205		365		553		199		2,468


Strip and Power Centers

The Commons at Magnolia	SC	100%	1999	1991/2002		—		—		—		—		—		—		21		21		—		—		—		—		—		126		126		29		37		14		227

Metroplex Shopping Center	PA	50%	1999	2001		—		—		—		—		—		—		67		67		—		—		—		—		—		301		301		354		56		0		778

The Court at Oxford Valley	PA	50%	1997	1996		—		—		—		—		—		—		60		60		—		—		—		—		—		247		247		300		45		52		704

Red Rose Commons	PA	50%	1998	1998		—		—		—		—		—		—		—		0		—		—		—		—		—		200		200		248		15		0		463

Springfield Park	PA	50%	1997/1998	1997/1998		—		—		—		—		—		—		83		83		—		—		—		—		—		146		146		10		22		13		274

Whitehall Mall	PA	50%	1964	1964/1998		—		—		—		213		—		—		82		295		—		—		—		—		—		—		0		196		44		40		575


Strip and Power Centers						0		0		0		213		0		0		313		526		0		0		0		0		0		1,020		1,020		1,137		219		119		3,021


Held for Sale

Christiana Center	DE	100%	1998	1998		—		—		—		—		—		—		191		191		—		—		—		—		—		—		0		68		44		0		303


Held for Sale						0		0		0		0		0		0		191		191		0		0		0		0		0		0		0		68		44		0		303


Portfolio Totals						178		929		2,455		2,589		1,125		836		2,645		10,757		3,150		720		822		328		42		1,727		6,789		4,589		7,237		1,570		30,942

⁽¹⁾	Does not include The Bon-Ton store located at Westgate.

Pennsylvania Real Estate Investment Trust

Department Store Lease Expirations as of March 31, 2013


	*Department Store Tenants*
Properties	Belk		Bon-Ton⁽¹⁾			Boscov’s			Burlington Coat Factory		Dillard’s		jcpenney			Kohl’s			Lord & Taylor			Macy’s			Nordstrom		Sears			Target

Premier Malls

Cherry Hill Mall		—		—			—			—		—		(2	)		—			—			(2	)		2025		—			—

Dartmouth Mall		—		—			—			—		—		2014			—			—			(2	)		—		2016			—

Jacksonville Mall		2016		—			—			—		—		2015			—			—			—			—		2016			—

Lehigh Valley Mall		—		—			2017			—		—		(2	)		—			—			2017			—		—			—

Willow Grove Park ⁽³⁾		—		—			—			—		—		2032			—			—			2022,	(2)		2022		(2	)		—

Woodland Mall		—		—			—			—		—		(2	)		(2	)		—			(2	)		—		(2	)		—

Core Growth Malls

Capital City Mall		—		—			—			—		—		2015			—			—			(2	)		—		2014			—

Crossroads Mall		2014		—			—			—		—		2016			—			—			—			—		2016			—

Cumberland Mall		—		—			(2	)		2019		—		2013			—			—			—			—		—			—

Exton Square Mall ⁽⁴⁾		—		—			2019			—		—		2020			—			—			(2	)		—		2019,	(2)		—

Francis Scott Key Mall		—		—			—			—		—		2016			—			—			(2	)		—		2018			—

Gadsden Mall		2014		—			—			—		—		2028			—			—			—			—		2014			—

The Gallery at Market East		—		—			—			2032		—		—			—			—			—			—		—			—

Logan Valley Mall		—		—			—			—		—		2017			—			—			2015			—		2016			—

Magnolia Mall		2016		—			—			—		—		2017			—			—			—			—		2014			—

Moorestown Mall		—		—			2015			—		—		—			—			(2	)		(2	)		—		2022			—

Patrick Henry Mall		—		—			—			—		2013		2015			—			—			(2	)		—		—			—

Plymouth Meeting Mall		—		—			2016			—		—		—			—			—			(2	)		—		—			—

The Mall at Prince Georges		—		—			—			—		—		2016			—			—			2018			—		—			2019

Springfield Mall		—		—			—			—		—		—			—			—			(2	)		—		—			(2	)

Valley Mall		—		2014			—			—		—		2014			—			—			(2	)		—		(2	)		—

Valley View Mall		—		(2	)		—			—		—		2015			—			—			(2	)		—		(2	)		—

Viewmont Mall		—		—			—			—		—		2015			—			—			(2	)		—		2015			—

Wyoming Valley Mall		—		2017			—			—		—		2017			—			—			2017			—		2016			—

(continued on next page)

Pennsylvania Real Estate Investment Trust

Department Store Lease Expirations as of March 31, 2013 (continued)


	*Department Store Tenants*
Properties	Belk, Inc.			Bon-Ton		Boscov’s			Burlington Coat Factory		Dillard’s			jcpenney			Kohl’s		Lord & Taylor		Macy’s			Nordstrom		Sears		Target

Opportunistic Malls

Lycoming Mall		—			2016		—			2019		—			2015			—		—		(2	)		—		2018		—

New River Valley Mall		2020			—		—			—		—			2018			—		—		—			—		2013		—

Nittany Mall		—			2018		—			—		—			2015			—		—		(2	)		—		2015		—

Palmer Park Mall		—			2014		2018			—		—			—			—		—		—			—		—		—

Uniontown Mall		—			2016		—			2019		—			2015			—		—		—			—		2018		—

Voorhees Town Center		—			—		(2	)		—		—			—			—		—		(2	)		—		—		—

Washington Crown Center		—			2015		—			—		—			—			—		—		(2	)		—		2014		—

Wiregrass Commons Mall		(2	)		—		—			2020		(2	)		(2	)		—		—		—			—		—		—

Non Core Malls

Beaver Valley Mall		—			—		2018			—		—			2017			—		—		(2	)		—		2016		—

Chambersburg Mall		—			2016		—			2019		—			2017			—		—		—			—		2015		—

North Hanover Mall		—			—		—					—			2027			—		—		—			—		2014		—

South Mall		—			2016		—					—			—			—		—		—			—		—		—

Strip and Power Centers

The Commons at Magnolia		—			—		—			—		—			—			—		—		—			—		—		(2	)

Metroplex Shopping Center		—			—		—			—		—			—			—		—		—			—		—		(2	)

The Court at Oxford Valley		—			—		—			—		—			—			—		—		—			—		—		—

Red Rose Commons		—			—		—			—		—			—			—		—		—			—		—		—

Springfield Park		—			—		—			—		—			—			—		—		—			—		—		(2	)

Whitehall Mall		—			—		—			—		—			—			2017		—		—			—		2021		—


Total PREIT Owned Department Stores		5			9		6			6		1			24			1		0		5			2		21		1


Total Non-PREIT Owned Deparment Stores		1			1		2			0		1			4			1		1		19			0		5		4

⁽¹⁾	Total PREIT owned department stores does not include The Bon-Ton store located at Westgate.

⁽²⁾	Department store is not PREIT owned.

⁽³⁾	The property has a Macy’s that is PREIT owned and a Bloomingdale’s that is not PREIT owned.

⁽⁴⁾	The property has a Sears that is PREIT owned and a K-Mart that is not PREIT owned.

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method⁽¹⁾

(in thousands, except per share amounts)


	March 31, 2013									December 31, 2012
	GAAP			Share of Unconsolidated Partnerships			Total			GAAP			Share of Unconsolidated Partnerships			Total
ASSETS
Investments in real estate, at cost
Operating properties	$	3,396,134		$	216,931		$	3,613,065		$	3,395,681		$	216,939		$	3,612,620
Construction in progress		67,314			1,000			68,314			68,619			811			69,430
Land held for development		12,643			—			12,643			13,240			—			13,240

Total investments in real estate		3,476,091			217,931			3,694,022			3,477,540			217,750			3,695,290
Accumulated depreciation		(938,810	)		(81,245	)		(1,020,055	)		(907,928	)		(80,112	)		(988,040	)

Net investments in real estate		2,537,281			136,686			2,673,967			2,569,612			137,638			2,707,250

Investments in partnerships, at equity		14,982			(14,982	)		—			14,855			(14,855	)		—
Other assets:
Cash and cash equivalents		33,641			5,180			38,821			33,990			4,883			38,873
Rent and other receivables⁽²⁾		38,364			2,151			40,515			38,473			1,824			40,297
Intangible assets, net		7,812			95			7,907			8,673			108			8,781
Deferred costs and other assets, net		92,279			15,148			107,427			97,399			15,585			112,984
Assets held for sale		30,021			—			30,021			114,622			—			114,622

Total other assets		217,099			7,592			224,691			308,012			7,545			315,557

Total assets	$	2,754,380		$	144,278		$	2,898,658		$	2,877,624		$	145,183		$	3,022,807


LIABILITIES AND EQUITY
Liabilities:	$	1,679,314		$	200,906		$	1,880,220		$	1,718,052		$	201,717		$	1,919,769
Mortgage loans
Term Loans		97,500			—			97,500			182,000			—			182,000
Revolving Facility		60,000			—			60,000			—			—			—
Tenants’ deposits and deferred rent		13,637			3,528			17,165			14,862			4,027			18,889
Distributions in excess of partnership investments		64,188			(64,188	)		—			64,874			(64,874	)		—
Fair value of derivative instruments		7,562			—			7,562			9,742			—			9,742
Liabilities related to assets held for sale		50,758			—			50,758			102,417			—			102,417
Other liabilities		54,351			4,032			58,383			72,448			4,313			76,761

Total liabilities		2,027,310			144,278			2,171,588			2,164,395			145,183			2,309,578


Equity:
Total equity		727,070			—			727,070			713,229			—			713,229

Total liabilities and equity	$	2,754,380		$	144,278		$	2,898,658		$	2,877,624		$	145,183		$	3,022,807

⁽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 ($25.6 million consolidated, $2.3 million unconsolidated) as of March 31, 2013 and $27.5 million ($25.2 million consolidated, $2.3 million unconsolidated) as of December 31, 2012.

Pennsylvania Real Estate Investment Trust

Investment in Real Estate⁽¹⁾

(in thousands)


	March 31, 2013								December 31, 2012
	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	$	70,838	$	—	$	25,052	$	45,786	$	70,831	$	—	$	24,292	$	46,539
Capital City Mall		96,942		1,520		28,581		69,881		96,517		1,041		27,761		69,797
Chambersburg Mall		38,426		—		10,154		28,272		38,432		—		9,890		28,542
Cherry Hill Mall		457,947		220		122,923		335,244		457,756		30		117,401		340,385
Crossroads Mall		45,795		331		11,624		34,502		45,719		264		11,192		34,791
Cumberland Mall		65,204		—		13,554		51,650		65,054		—		13,005		52,049
Dartmouth Mall		62,994		—		29,913		33,081		62,841		—		29,459		33,382
Exton Square Mall		150,734		133		34,316		116,551		150,680		129		33,389		117,420
Francis Scott Key Mall		79,430		141		22,809		56,762		79,417		92		22,075		57,434
Gadsden Mall		62,171		—		12,852		49,319		63,295		—		13,474		49,821
The Gallery at Market East		184,170		4,769		37,777		151,162		183,572		5,742		35,470		153,844
Jacksonville Mall		81,397		—		22,082		59,315		81,390		—		21,399		59,991
Logan Valley Mall		97,743		—		27,637		70,106		97,679		—		27,029		70,650
Lycoming Mall		78,114		—		21,720		56,394		78,099		—		21,033		57,066
Magnolia Mall		88,981		77		31,039		58,019		88,976		59		30,183		58,852
Moorestown Mall		93,531		5,123		31,242		67,412		93,454		2,943		30,495		65,902
New River Valley Mall		58,850		—		22,042		36,808		58,804		—		21,249		37,555
Nittany Mall		44,432		—		11,973		32,459		44,432		—		11,644		32,788
North Hanover Mall		30,326		6		6,735		23,597		29,973		14		6,305		23,682
Palmer Park Mall		34,536		—		13,749		20,787		34,536		—		13,562		20,974
Patrick Henry Mall		143,476		—		43,877		99,599		143,422		—		42,453		100,969
Plymouth Meeting Mall		164,918		3		41,710		123,211		165,178		76		39,975		125,279
The Mall at Prince Georges		102,216		—		40,489		61,727		102,213		—		39,603		62,610
South Mall		35,924		—		8,023		27,901		35,924		—		7,796		28,128
Uniontown Mall		42,222		—		13,057		29,165		42,173		—		12,652		29,521
Valley Mall		95,546		—		26,730		68,816		95,160		—		26,094		69,066
Valley View Mall		68,495		—		16,752		51,743		68,486		—		16,242		52,244
Viewmont Mall		91,852		—		24,036		67,816		91,851		—		23,268		68,583
Voorhees Town Center		92,348		810		24,252		68,906		91,495		1,447		22,568		70,374
Washington Crown Center		40,809		169		14,574		26,404		40,802		29		14,359		26,472
Willow Grove Park		230,243		—		59,388		170,855		230,195		5		57,502		172,698
Wiregrass Commons Mall		53,902		—		13,174		40,728		53,897		—		12,693		41,204
Woodland Mall		188,301		—		40,184		148,117		188,121		—		38,681		149,440
Wyoming Valley Mall		109,365		—		30,994		78,371		109,288		—		30,018		79,270

Total Consolidated Malls		3,382,178		13,302		935,014		2,460,466		3,379,662		11,871		904,211		2,487,322

Unconsolidated Malls
Lehigh Valley Mall		45,367		220		20,735		24,852		45,483		32		20,484		25,031
Springfield Mall		56,865		6		13,952		42,919		56,766		6		13,526		43,246

Total Unconsolidated Malls		102,232		226		34,687		67,771		102,249		38		34,010		68,277

TOTAL MALLS	$	3,484,410	$	13,528	$	969,701	$	2,528,237	$	3,481,911	$	11,909	$	938,221	$	2,555,599

(continued on next page)

Pennsylvania Real Estate Investment Trust

Investment in Real Estate⁽¹⁾(continued)

(in thousands)


	March 31, 2013								December 31, 2012
	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
The Commons at Magnolia	$	12,441	$	—	$	3,781	$	8,660	$	12,441	$	—	$	3,693	$	8,748
Monroe Marketplace		1,515		—		15		1,500		3,578		—		24		3,554

Total Consolidated Strip and Power Centers		13,956		—		3,796		10,160		16,019		—		3,717		12,302

Unconsolidated Strip and Power Centers
Metroplex Shopping Center		42,890		—		18,938		23,952		42,890		—		18,911		23,979
The Court at Oxford Valley		27,953		4		9,890		18,067		27,953		4		9,747		18,210
Red Rose Commons		13,617		1		4,740		8,878		13,617		1		4,652		8,966
Springfield Park		7,196		—		1,875		5,321		7,195		—		1,837		5,358
Whitehall Mall		16,793		—		9,350		7,443		16,785		7		9,243		7,549

Total Unconsolidated Strip and Power Centers		108,449		5		44,793		63,661		108,440		12		44,390		64,062

TOTAL STRIP AND POWER CENTERS	$	122,405	$	5	$	48,589	$	73,821	$	124,459	$	12	$	48,107	$	76,364

Consolidated Properties Under Development
Springhills	$	—	$	19,230	$	—	$	19,230	$	—	$	21,961	$	—	$	21,961
White Clay Point		—		34,782		—		34,782		—		34,787		—		34,787

Total Consolidated Properties Under Development		—		54,012		—		54,012		—		56,748		—		56,748
Unconsolidated Properties Under Development
Pavilion at Market East		6,250		769		1,765		5,254		6,250		761		1,712		5,299

Total Unconsolidated Properties Under Development		6,250		769		1,765		5,254		6,250		761		1,712		5,299
Other Properties
Land held for development - consolidated		12,643		—		—		12,643		13,240		—		—		13,240

Total Other Properties		12,643		—		—		12,643		13,240		—		—		13,240

TOTAL DEVELOPMENT AND OTHER	$	18,893	$	54,781	$	1,765	$	71,909	$	19,490	$	57,509	$	1,712	$	75,287

TOTAL INVESTMENT IN REAL ESTATE	$	3,625,708	$	68,314	$	1,020,055	$	2,673,967	$	3,625,860	$	69,430	$	988,040	$	2,707,250

CONSOLIDATED PROPERTIES	$	3,408,777	$	67,314	$	938,810	$	2,537,281	$	3,408,921	$	68,619	$	907,928	$	2,569,612
UNCONSOLIDATED PROPERTIES		216,931		1,000		81,245		136,686		216,939		811		80,112		137,638

TOTAL INVESTMENT IN REAL ESTATE	$	3,625,708	$	68,314	$	1,020,055	$	2,673,967	$	3,625,860	$	69,430	$	988,040	$	2,707,250

⁽¹⁾

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)


	Quarter Ended March 31, 2013
	Consolidated		Unconsolidated		Discontinued Operations		Total
Redevelopment projects with incremental GLA and/or anchor replacement⁽¹⁾	$	3,093	$	194	$	—	$	3,287
New development projects		—		7		—		7
Tenant allowances		1,746		101		—		1,847
Recurring capital expenditures:
CAM expenditures		235		24		—		259
Non-CAM expenditures		186		—		—		186

Total recurring capital expenditures		421		24		—		445

Total	$	5,260	$	326	$	—	$	5,586

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

Pennsylvania Real Estate Investment Trust

Debt Analysis as of March 31, 2013

(in thousands)


	Outstanding Debt
	Fixed Rate⁽¹⁾			% of Total Indebtedness			Variable Rate			% of Total Indebtedness			Total			% of Total Indebtedness
Consolidated mortgage loans payable⁽²⁾	$	1,727,183			82.8	%	$	1,690			0.1	%	$	1,728,873			82.9	%
Unconsolidated mortgage loans payable		197,203			9.4	%		3,703			0.2	%		200,906			9.6	%
2010 Credit Facility⁽³⁾		5,000			0.2	%		152,500			7.3	%		157,500			7.5	%

TOTAL OUTSTANDING DEBT	$	1,929,386			92.4	%	$	157,893			7.6	%	$	2,087,279			100.0	%

AVERAGE STATED INTEREST RATE		5.29	%					3.23	%					5.14	%

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

⁽²⁾	Includes mortgage loan balances from a property classified as held for sale.

⁽³⁾	As of March 31, 2013, for presentation purposes, we have designated interest rate swap agreements to effectively fix $5.0 million of the underlying LIBOR associated with the 2010 Credit Facility until September 10, 2013 at a current interest rate of 3.69%, excluding the spread on the related debt.


		Average Debt Balance
					2010 Credit Facility
		Mortgage Debt⁽¹⁾			Revolving Facility		Term Loans			TOTAL
Beginning Balance	12/31/2012	$	2,019,523		$	—	$	182,000		$	2,201,523
Mortgage loan amortization			(5,187	)		—		—			(5,187	)
Paxton Towne Centre mortgage repayment			(50,000	)		—		—			(50,000	)
Francis Scott Key Mall additional borrowing			7,625			—		—			7,625
Lycoming Mall additional borrowing			2,067			—		—			2,067
Moorestown Mall mortgage repayment			(53,242	)		—		—			(53,242	)
Dartmouth Mall mortgage repayment			(58,007	)		—		—			(58,007	)
Darmouth Mall new mortgage loan			67,000			—		—			67,000
Credit Facility, net			—			60,000		(84,500	)		(24,500	)

Ending Balance	3/31/2013	$	1,929,779		$	60,000	$	97,500		$	2,087,279

Weighted Average Balance		$	1,963,038		$	19,333	$	121,372		$	2,103,744

⁽¹⁾	Includes principal amortization of mortgage loans from a property classified as held for sale.


	Debt Maturities⁽¹⁾
					2010 Credit Facility
Year	Scheduled Amortization⁽²⁾		Mortgage Balance at Maturity⁽²⁾		Revolving Facility		Term Loans		Total Debt
2013	$	15,119	$	184,265	$	—	$	—	$	199,384
2014		21,973		66,733		60,000		97,500		246,206
2015		25,655		306,020		—		—		331,675
2016		15,981		243,745		—		—		259,726
2017		15,250		153,283		—		—		168,533
2018		14,938		145,678		—		—		160,616
Thereafter		51,133		670,006		—		—		721,139

	$	160,049	$	1,769,730	$	60,000	$	97,500	$	2,087,279

⁽¹⁾	The weighted average period to mortgage maturity is 5.59 years, excluding extension options. Includes 100% of mortgage debt from consolidated properties and our share of mortgage debt from unconsolidated properties, based on our ownership percentage.

⁽²⁾	Includes mortgage loan balances from a property classified as held for sale.


Weighted Average Mortgage Interest Rates⁽¹⁾
Year	Balance		Interest Rate
2013	$	184,265		5.82	%
2014		67,241		7.50	%
2015		325,687		5.69	%
2016		258,494		5.30	%
2017		153,703		5.45	%
Thereafter		940,389		4.84	%

Total	$	1,929,779		5.29	%

⁽¹⁾	Includes mortgage loan balances from a property classified as held for sale.

Pennsylvania Real Estate Investment Trust

Debt Schedule as of March 31, 2013

(in thousands)


	Debt⁽¹⁾		Interest Rate			Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Mortgage Loans
Jacksonville Mall⁽²⁾	$	56,265		5.83	%	$	3,277	$	56,265	Sept 2013	Sept 2015
Logan Valley Mall⁽²⁾		63,000		5.79	%		3,649		63,000	Sept 2013	Sept 2015
Wyoming Valley Mall⁽²⁾		65,000		5.85	%		3,803		65,000	Sept 2013	Sept 2015
Exton Square Mall		67,241		7.50	%		5,873		66,733	Jan 2014	Jan 2014
Springfield East⁽²⁾		2,167		5.39	%		92		2,061	Mar 2015	Mar 2020
Springfield Park⁽²⁾		2,545		5.39	%		108		2,419	Mar 2015	Mar 2020
Magnolia Mall		58,008		5.33	%		4,413		54,965	July 2015	July 2015
Patrick Henry Mall		88,902		6.34	%		7,743		83,210	Oct 2015	Oct 2015
Springfield Mall⁽²⁾		32,318		4.77	%		2,118		30,740	Nov 2015	Nov 2015
Willow Grove Park		141,747		5.65	%		11,083		132,624	Dec 2015	Dec 2015
Valley Mall		83,610		5.49	%		5,014		78,996	Mar 2016	Mar 2016
Woodland Mall		148,194		5.58	%		10,760		140,484	Apr 2016	Apr 2016
801 Market Street⁽²⁾		25,000		3.20	%		1,518		24,265	July 2016	July 2018
The Mall at Prince Georges		150,000		5.51	%		8,269		150,000	June 2017	June 2017
Francis Scott Key Mall⁽²⁾⁽³⁾		62,625		5.26	%		3,297		62,625	Mar 2018	Mar 2018
Viewmont Mall⁽²⁾⁽⁴⁾		48,000		5.50	%		2,638		48,000	Mar 2018	Mar 2018
Lycoming Mall⁽⁵⁾		35,500		3.72	%		3,001		30,907	Mar 2018	Mar 2018
Whitehall Mall		5,455		7.00	%		574		4,145	Nov 2018	Nov 2018
New River Valley Mall⁽²⁾⁽⁶⁾		28,050		4.38	%		1,229		28,050	Jan 2019	Jan 2019
Valley View Mall		30,967		5.95	%		2,290		27,161	July 2020	July 2020
Lehigh Valley Mall		67,536		5.88	%		4,972		58,519	July 2020	July 2020
Red Rose Commons		14,605		5.14	%		978		12,379	July 2021	July 2021
The Court at Oxford Valley		29,751		5.56	%		1,668		25,782	July 2021	July 2021
Capital City Mall		64,881		5.30	%		4,379		54,715	Mar 2022	Mar 2022
Christiana Center⁽⁷⁾		49,559		4.64	%		3,090		40,710	Aug 2022	Aug 2022
Cumberland Mall		51,338		4.40	%		3,433		38,157	Aug 2022	Aug 2022
Cherry Hill Mall		300,000		3.90	%		11,700		252,568	Sept 2022	Sept 2022
Dartmouth Mall		67,000		3.97	%		3,825		53,300	Apr 2023	Apr 2023
Metroplex Shopping Center		42,826		5.00	%		2,681		33,978	Oct 2023	Oct 2023
Beaver Valley Mall⁽⁸⁾		42,296		9.36	%		3,972		44,689	Apr 2032	Apr 2032

Total Fixed Rate Mortgage Loans		1,924,386		5.29	%		121,447		1,766,447

Variable Rate Mortgage Loans
801 Market Street		1,690		2.30	%		36		—	July 2016	July 2018
Pavilion East Associates		3,703		3.00	%		253		3,283	Aug 2017	Aug 2017

Total Variable Rate Mortgage Loans		5,393		2.78	%		289		3,283

Total Mortgage Loans	$	1,929,779		5.28	%	$	121,736	$	1,769,730


CONSOLIDATED MORTGAGE LOANS	$	1,728,873		5.27	%	$	108,292	$	1,596,424
UNCONSOLIDATED MORTGAGE LOANS		200,906		5.38	%		13,444		173,306
2010 CREDIT FACILITY - FIXED RATE^(9)(10)		5,000		6.69	%		335		5,000	Mar 2014	Mar 2015
2010 CREDIT FACILITY - VARIABLE RATE⁽¹⁰⁾		152,500		3.25	%		4,956		152,500	Mar 2014	Mar 2015

Total	$	2,087,279		5.14	%	$	127,027	$	1,927,230

AMORTIZATION OF DEFERRED FINANCING FEES		—		0.27	%		—		—

EFFECTIVE INTEREST RATE	$	2,087,279		5.41	%	$	127,027	$	1,927,230

⁽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⁾	In February 2013, the amount of this mortgage loan was increased by $7.6 million and the due date was extended to March 2018.

⁽⁴⁾	In February 2013, the due date of this mortgage loan was extended to March 2018.

⁽⁵⁾	In February 2013, the amount of this mortgage loan was increased by $2.1 million and the due date was extended to March 2018.

⁽⁶⁾	Payments are of interest only until 2017, then principal and interest at a rate to be determined.

⁽⁷⁾	The mortgage loan for this property is classified in liabilities related to assets held for sale on the balance sheet.

⁽⁸⁾	This mortgage loan has passed its Anticipated Repayment Date. The final maturity date is April 2032.

⁽⁹⁾	The 2010 Credit Facility consists of the 2010 Term Loan, with a balance of $97,500 and the Revolving Facility, with a balance of $60,000 as of March 31, 2013.

⁽¹⁰⁾	As of March 31, 2013, for presentation purposes, we have designated interest rate swap agreements to effectively fix $5,000 of the underlying LIBOR associated with the 2010 Credit Facility until September 10, 2013 at a current interest rate of 3.69%, excluding the spread on the related debt.

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios⁽¹⁾


	March 31, 2013

Consolidated Liabilities to Gross Asset Value		55.29	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 60%

Secured Indebtedness to Gross Asset Value		49.44	%
Secured indebtedness to Gross Asset Value may not exceed 60%

Adjusted EBITDA to Fixed Charges		1.62
Adjusted EBITDA may not be less than 1.45 to 1.00

Unencumbered Adjusted NOI to Unsecured Interest Expense		3.39
Unencumbered Adjusted NOI to Unsecured Interest Expense may not be less than 1.75 to 1.00

Unencumbered Debt Yield		32.72	%
The ratio of Unencumbered Adjusted NOI to Unsecured Debt may not be less than 12%

⁽¹⁾

The 2013 Revolving Facility agreement dated as of April 17, 2013, 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 2013 Revolving Facility. In addition to the ratios set forth herein, there are several other ratios under the 2013 Revolving Facility with which the Company must comply, all of which are described in the Company’s Current Report on Form 8-K dated April 18, 2013.

Pennsylvania Real Estate Investment Trust

Definitions

Funds From Operations (FFO)

The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations (“FFO”), which is a non-GAAP measure commonly used by REITs, as net income excluding gains and losses on sales of operating properties (computed in accordance with GAAP), plus real estate depreciation and amortization; and after adjustments for unconsolidated partnerships and joint ventures to reflect funds from operations on the same basis. We compute FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than we do. In 2011, NAREIT reiterated its established guidance that excluding impairment write downs of depreciable real estate is consistent with the NAREIT definition.

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

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

We also present Funds From Operations, as adjusted, and Funds From Operations per diluted share and OP Unit, as adjusted, which are non-GAAP measures, for the three months ended March 31, 2013 and 2012 to show the effect of the provision for executive separation expense, gain on hedge ineffectiveness and accelerated amortization of deferred financing costs, which had a significant effect on our results of operations, but is not, in our opinion, indicative of our operating performance.

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

Net Operating Income (NOI)

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

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

Funds Available for Distribution (FAD)

FAD 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 as Adjusted and subtracting (1) straight-line rent, (2) normalized recurring capital expenditures that are capitalized but necessary to maintain our properties, (3) operational tenant allowances, (4) capitalized leasing costs, (5) amortization of debt premium, and (6) amortization of above- and below-market lease intangibles.

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

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