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	d572941d8k.htm

Exhibit 99.1

Pennsylvania Real Estate Investment Trust^®

LOGO

Supplemental Financial and Operating Information

Quarter Ended June 30, 2013

www.preit.com

NYSE: PEI

NYSE: PEIPRA, PEIPRB

Pennsylvania Real Estate Investment Trust

Supplemental Financial and Operating Information

June 30, 2013

Table of Contents


*Introduction*
Company Information			1
Market Capitalization and Capital Resources			2
*Operating Results*
Statement of Operations - Proportionate Consolidation Method - Quarters Ended June 30, 2013 and June 30, 2012			3
Statement of Operations - Proportionate Consolidation Method - Six Months Ended June 30, 2013 and June 30, 2012			4
Statement of Net Operating Income - Quarters and Six Months Ended June 30, 2013 and June 30, 2012			5
Computation of Earnings Per Share			6
Funds From Operations and Funds Available for Distribution - Quarters Ended June 30, 2013 and June 30, 2012			7
Funds From Operations and Funds Available for Distribution - Six Months Ended June 30, 2013 and June 30, 2012			8
*Operating Statistics*
Leasing Activity Summary			9
Summarized Sales and Rent Per Square Foot and Occupancy Percentages			10
Mall Occupancy Percentage and Sales Per Square Foot			11
Strip and Power Center Occupancy Percentages			12
Top Twenty Tenants			13
Lease Expirations			14
Property Information			15
Department Store Lease Expirations			17
*Balance Sheet*
Condensed Balance Sheet - Proportionate Consolidation Method			19
Investment in Real Estate			20
Capital Expenditures			22
Debt Analysis			23
Debt Schedule			24
Selected Debt Ratios			25
Definitions			26

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 and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. PREIT does not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

PREIT/Page 1

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 31.0 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 and Investor Relations

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 Wigginton	(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
	Yasmine Kamaruddin	(212) 622-1041

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

SunTrust Robinson Humphrey	Ki Bin Kim	(212) 303-4124

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

PREIT/Page 2

Pennsylvania Real Estate Investment Trust

Market Capitalization and Capital Resources

(in thousands, except per share amounts)


	Quarter Ended June 30,						Year Ended December 31,
	2013			2012			2012			2011
TRADING INFORMATION
Common Shares
High Price per share	$	22.54		$	15.69		$	17.90		$	17.34
Low Price per share	$	14.20		$	11.81		$	10.49		$	6.50
Closing Share Price (at the end of period)	$	18.88		$	14.98		$	17.64		$	10.44

Series A Preferred Shares
High Price per share	$	28.06		$	25.84		$	27.33		$	—
Low Price per share	$	25.30		$	24.98		$	24.95		$	—
Closing Share Price (at the end of period)	$	26.44		$	25.75		$	26.28		$	—

Series B Preferred Shares
High Price per share	$	26.86		$	—		$	25.54		$	—
Low Price per share	$	24.61		$	—		$	24.51		$	—
Closing Share Price (at the end of period)	$	25.70		$	—		$	25.27		$	—

MARKET CAPITALIZATION
EQUITY CAPITALIZATION
Common Shares Outstanding		68,147			56,001			56,331			55,677
OP Units Outstanding		2,136			2,309			2,301			2,329

Total Common Shares and OP Units Outstanding		70,283			58,310			58,632			58,006


Equity Market Capitalization - Common Shares and OP Units	$	1,326,938		$	873,485		$	1,034,273		$	605,581
Series A Preferred Shares, Nominal Value		115,000			115,000			115,000			—
Series B Preferred Shares, Nominal Value		86,250			—			86,250			—

Total Equity Market Capitalization	$	1,528,188		$	988,485		$	1,235,523		$	605,581


DEBT CAPITALIZATION⁽¹⁾
Secured Debt Balance⁽²⁾⁽³⁾	$	1,819,258		$	2,249,912		$	2,101,769		$	2,230,645
Unsecured Debt Balance⁽⁴⁾		35,000			—			—			136,900

Debt Capitalization		1,854,258			2,249,912			2,101,769			2,367,545

TOTAL MARKET CAPITALIZATION	$	3,382,446		$	3,238,397		$	3,337,292		$	2,973,126


*Equity Capitalization/Total Market Capitalization*		45.2	%		30.5	%		37.0	%		20.4	%
*Debt Capitalization/Total Market Capitalization*		54.8	%		69.5	%		63.0	%		79.6	%
*Unsecured Debt Balance/Total Debt*		1.9	%		0.0	%		0.0	%		5.8	%

DISTRIBUTIONS PER COMMON SHARE

Ordinary Dividends			⁽⁶⁾	$	0.16		$	—		$	0.37
Capital Gain Distributions⁽⁵⁾			⁽⁶⁾		—			—			0.01
Non-Dividend Distributions			⁽⁶⁾		—			0.63			0.22

Distributions per common share	$	0.18		$	0.16		$	0.63		$	0.60


Annualized Dividend Yield⁽⁷⁾		3.8	%		4.3	%		3.6	%		5.7	%

CAPITAL RESOURCES

Cash and Cash Equivalents	$	23,589		$	20,942		$	38,873		$	27,481

Revolving Facility		400,000			250,000			250,000			250,000
Amount Outstanding		(35,000	)		(65,000	)		—			(95,000	)

Available Revolving Facility⁽⁸⁾		365,000			185,000			250,000			155,000

TOTAL	$	388,589		$	205,942		$	288,873		$	182,481


Shelf Registration	$	568,750		$	885,000		$	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 $182,000 in Term Loans outstanding as of December 31, 2012 and $240,000 outstanding as of June 30, 2012 and December 31, 2011.

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

⁽⁴⁾	The unsecured debt balance includes a Revolving Facility balance of $35,000 as of June 30, 2013 and Exchangeable Notes of $136,900 as of 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.

PREIT/Page 3

Pennsylvania Real Estate Investment Trust

Statement of Operations - Quarters Ended June 30, 2013 and June 30, 2012

Proportionate Consolidation Method

(in thousands)


	Quarter Ended June 30, 2013												Quarter Ended June 30, 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	$	70,274		$	6,736		$	1,161		$	78,171		$	67,141		$	6,444		$	5,263		$	78,848
Expense reimbursements		31,163			2,625			190			33,978			29,691			2,475			1,221			33,387
Percentage rent		584			31			—			615			509			3			—			512
Lease termination revenue		91			16			35			142			769			—			7			776
Other real estate revenue		2,901			277			43			3,221			3,088			325			152			3,565

Total real estate revenue		105,013			9,685			1,429			116,127			101,198			9,247			6,643			117,088
Other income		1,395			—			—			1,395			884			—			—			884

Total revenue		106,408			9,685			1,429			117,522			102,082			9,247			6,643			117,972


EXPENSES:
Operating expenses:
CAM and real estate taxes		(35,155	)		(2,121	)		(153	)		(37,429	)		(33,332	)		(1,810	)		(2,608	)		(37,750	)
Utilities		(5,140	)		(172	)		(5	)		(5,317	)		(5,651	)		(168	)		(62	)		(5,881	)
Other operating expenses		(4,095	)		(534	)		(15	)		(4,644	)		(4,616	)		(660	)		(539	)		(5,815	)

Total operating expenses		(44,390	)		(2,827	)		(173	)		(47,390	)		(43,599	)		(2,638	)		(3,209	)		(49,446	)


Depreciation and amortization		(35,451	)		(1,810	)		—			(37,261	)		(31,573	)		(1,840	)		(1,827	)		(35,240	)
Other expenses:
General and administrative expenses		(9,606	)		—			—			(9,606	)		(10,240	)		—			—			(10,240	)
Provision for employee separation expense		(1,035	)		—			—			(1,035	)		(796	)		—			—			(796	)
Project costs and other expenses		(198	)		—			—			(198	)		(39	)		—			—			(39	)

Total other expenses		(10,839	)		—			—			(10,839	)		(11,075	)		—			—			(11,075	)


Interest expense, net⁽²⁾		(27,689	)		(2,765	)		(587	)		(31,041	)		(30,815	)		(2,817	)		(980	)		(34,612	)

Total expenses		(118,369	)		(7,402	)		(760	)		(126,531	)		(117,062	)		(7,295	)		(6,016	)		(130,373	)


Loss before equity in income of partnerships and discontinued operations		(11,961	)		2,283			669			(9,009	)		(14,980	)		1,952			627			(12,401	)
Equity in income of partnerships		2,283			(2,283	)		—			—			1,952			(1,952	)		—			—

Loss from continuing operations		(9,678	)		—			669			(9,009	)		(13,028	)		—			627			(12,401	)
Discontinued operations:
Operating results from discontinued operations		669			—			(669	)		—			627			—			(627	)		—

Income from discontinued operations		669			—			(669	)		—			627			—			(627	)		—

Net loss		(9,009	)		—			—			(9,009	)		(12,401	)		—			—			(12,401	)
Less: net loss attributed to noncontrolling interest		314			—			—			314			513			—			—			513

Net loss attributable to PREIT	$	(8,695	)	$	—		$	—		$	(8,695	)	$	(11,888	)	$	—		$	—		$	(11,888	)
Less: preferred share dividends		(3,962	)		—			—			(3,962	)		(1,845	)		—			—			(1,845	)

Net loss attributable to PREIT common shareholders	$	(12,657	)	$	—		$	—		$	(12,657	)	$	(13,733	)	$	—		$	—		$	(13,733	)

⁽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 $149 and $547 for the quarters ended June 30, 2013 and 2012, respectively.

PREIT/Page 4

Pennsylvania Real Estate Investment Trust

Statement of Operations - Six Months Ended June 30, 2013 and June 30, 2012

Proportionate Consolidation Method

(in thousands)


	Six Months Ended June 30, 2013												Six Months Ended June 30, 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	$	139,884		$	13,524		$	3,301		$	156,709		$	133,892		$	12,890		$	10,551		$	157,333
Expense reimbursements		62,269			5,518			676			68,463			60,393			5,226			2,545			68,164
Percentage rent		1,576			72			16			1,664			1,405			39			22			1,466
Lease termination revenue		244			16			35			295			1,420			58			7			1,485
Other real estate revenue		5,766			574			144			6,484			5,763			625			307			6,695

Real estate revenue		209,739			19,704			4,172			233,615			202,873			18,838			13,432			235,143
Other income		2,283			—			—			2,283			1,645			—			—			1,645

Total revenue		212,022			19,704			4,172			235,898			204,518			18,838			13,432			236,788


EXPENSES:
Operating expenses:
CAM and real estate taxes		(70,599	)		(4,349	)		(1,238	)		(76,186	)		(66,908	)		(4,011	)		(5,241	)		(76,160	)
Utilities		(10,259	)		(338	)		(27	)		(10,624	)		(10,887	)		(332	)		(115	)		(11,334	)
Other operating expenses		(8,020	)		(1,111	)		(349	)		(9,480	)		(8,596	)		(1,222	)		(1,066	)		(10,884	)

Total operating expenses		(88,878	)		(5,798	)		(1,614	)		(96,290	)		(86,391	)		(5,565	)		(6,422	)		(98,378	)


Depreciation and amortization		(69,432	)		(3,639	)		—			(73,071	)		(63,545	)		(3,691	)		(3,574	)		(70,810	)
Other expenses:
General and administrative expenses		(18,462	)		—			—			(18,462	)		(20,124	)		—			—			(20,124	)
Provision for employee separation expense		(2,314	)		—			—			(2,314	)		(796	)		—			—			(796	)
Project costs and other expenses		(400	)		—			—			(400	)		(397	)		—			—			(397	)

Total other expenses		(21,176	)		—			—			(21,176	)		(21,317	)		—			—			(21,317	)


Interest expense, net⁽²⁾		(55,027	)		(5,531	)		(1,259	)		(61,817	)		(61,533	)		(5,637	)		(1,930	)		(69,100	)

Total expenses		(234,513	)		(14,968	)		(2,873	)		(252,354	)		(232,786	)		(14,893	)		(11,926	)		(259,605	)

Loss before equity in income of partnerships and gains on sales of real estate and discontinued operations		(22,491	)		4,736			1,299			(16,456	)		(28,268	)		3,945			1,506			(22,817	)
Equity in income of partnerships		4,736			(4,736	)		—			—			3,945			(3,945	)		—			—

Loss from continuing operations		(17,755	)		—			1,299			(16,456	)		(24,323	)		—			1,506			(22,817	)
Discontinued operations
Operating results from discontinued operations		1,299			—			(1,299	)		—			1,506			—			(1,506	)		—
Gains on sales of discontinued operations		33,254			—			—			33,254			—			—			—			—

Income from discontinued operations		34,553			—			(1,299	)		33,254			1,506			—			(1,506	)		—

Net income (loss)		16,798			—			—			16,798			(22,817	)		—			—			(22,817	)
Less: net (income) loss attributed to noncontrolling interests		(691	)		—			—			(691	)		932			—			—			932

Net income (loss) attributable to PREIT	$	16,107		$	—		$	—		$	16,107		$	(21,885	)	$	—		$	—		$	(21,885	)
Less: preferred share dividends		(7,924	)		—			—			(7,924	)		(1,845	)		—			—			(1,845	)

Net income (loss) attributable to PREIT common shareholders	$	8,183		$	—		$	—		$	8,183		$	(23,730	)	$	—		$	—		$	(23,730	)

⁽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 $214 and $1,083 for the six months ended June 30, 2013 and 2012, respectively.

PREIT/Page 5

Pennsylvania Real Estate Investment Trust

Statement of Net Operating Income⁽¹⁾

(in thousands)


	Quarter Ended June 30, 2013												Quarter Ended June 30, 2012
SAME STORE RETAIL/NEW/OTHER	Same			New			Other			Total			Same			New			Other			Total

Real estate revenue:
Base rent	$	75,583		$	1,160		$	1,428		$	78,171		$	73,241		$	—		$	5,607		$	78,848
Expense reimbursements		33,589			188			201			33,978			32,155			—			1,232			33,387
Percentage rent		615			—			—			615			512			—			—			512
Lease termination revenue		108			—			34			142			766			—			10			776
Other real estate revenue		3,057			—			164			3,221			3,290			—			275			3,565

TOTAL REAL ESTATE REVENUE		112,952			1,348			1,827			116,127			109,964			—			7,124			117,088


Operating expenses:
CAM and real estate taxes		(36,520	)		(242	)		(667	)		(37,429	)		(34,696	)		—			(3,054	)		(37,750	)
Utilities		(5,199	)		(113	)		(5	)		(5,317	)		(5,818	)		—			(63	)		(5,881	)
Other operating expenses		(4,578	)		(35	)		(31	)		(4,644	)		(5,247	)		—			(568	)		(5,815	)

TOTAL OPERATING EXPENSES		(46,297	)		(390	)		(703	)		(47,390	)		(45,761	)		—			(3,685	)		(49,446	)

NET OPERATING INCOME	$	66,655		$	958		$	1,124		$	68,737		$	64,203		$	—		$	3,439		$	67,642


Same store NOI variance													2013			% change 2012 to 2013			2012
Same store NOI⁽²⁾													$	66,655			3.8	%	$	64,203
Same store NOI excluding lease terminations													$	66,547			4.9	%	$	63,437

	Six Months Ended June 30, 2013												Six Months Ended June 30, 2012
SAME STORE RETAIL/NEW/OTHER	Same			New			Other			Total			Same			New			Other			Total

Real estate revenue:
Base rent	$	151,626		$	1,160		$	3,923		$	156,709		$	146,088		$	—		$	11,245		$	157,333
Expense reimbursements		67,579			188			696			68,463			65,594			—			2,570			68,164
Percentage rent		1,648			—			16			1,664			1,444			—			22			1,466
Lease termination revenue		260			—			35			295			1,477			—			8			1,485
Other real estate revenue		6,100			—			384			6,484			6,142			—			553			6,695

TOTAL REAL ESTATE REVENUE		227,213			1,348			5,054			233,615			220,745			—			14,398			235,143


Operating expenses:
CAM and real estate taxes		(73,800	)		(242	)		(2,144	)		(76,186	)		(70,056	)		—			(6,104	)		(76,160	)
Utilities		(10,484	)		(113	)		(27	)		(10,624	)		(11,220	)		—			(114	)		(11,334	)
Other operating expenses		(9,075	)		(35	)		(370	)		(9,480	)		(9,754	)		—			(1,130	)		(10,884	)

TOTAL OPERATING EXPENSES		(93,359	)		(390	)		(2,541	)		(96,290	)		(91,030	)		—			(7,348	)		(98,378	)

NET OPERATING INCOME	$	133,854		$	958		$	2,513		$	137,325		$	129,715		$	—		$	7,050		$	136,765


Same store NOI variance													2013			% change 2012 to 2013			2012
Same store NOI⁽²⁾													$	133,854			3.2	%	$	129,715
Same store NOI excluding lease terminations													$	133,594			4.2	%	$	128,238

⁽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⁾	Same store NOI definition can be found on page 26.

PREIT/Page 6

Pennsylvania Real Estate Investment Trust

Computation of Earnings Per Share

(in thousands, except per share amounts)


	Quarter Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012

Loss from continuing operations	$	(9,678	)	$	(13,028	)	$	(17,755	)	$	(24,323	)
Noncontrolling interest		336			537			651			992
Dividends on preferred shares		(3,962	)		(1,845	)		(7,924	)		(1,845	)
Dividends on unvested restricted shares		(103	)		(128	)		(211	)		(189	)

Loss from continuing operations used to calculate earnings per share - basic and diluted	$	(13,407	)	$	(14,464	)	$	(25,239	)	$	(25,365	)


Income from discontinued operations	$	669		$	627		$	34,553		$	1,506
Noncontrolling interest		(22	)		(24	)		(1,342	)		(60	)

Income from discontinued operations used to calculate earnings per share - basic and diluted	$	647		$	603		$	33,211		$	1,446


Basic and diluted earnings (loss) per share
Loss from continuing operations	$	(0.21	)	$	(0.26	)	$	(0.42	)	$	(0.46	)
Income from discontinued operations		0.01			0.01			0.55			0.03

	$	(0.20	)	$	(0.25	)	$	0.13		$	(0.43	)


Weighted average common shares outstanding		64,123			55,899			60,269			55,742
Weighted average unvested restricted shares		(583	)		(756	)		(608	)		(716	)

Weighted average shares outstanding - basic		63,540			55,143			59,661			55,026
Weighted average effect of common share equivalents⁽¹⁾		—			—			—			—

Total weighted average shares outstanding - diluted		63,540			55,143			59,661			55,026

⁽¹⁾

The Company had net losses from continuing operations for all periods presented. Therefore, the effect of common share equivalents of 727 and 1,007 for the quarters ended June 30, 2013 and 2012, respectively, and 780 and 947 for the six months ended June 30, 2013 and 2012, respectively, are excluded from the calculation of diluted loss per share because they would be antidilutive.

PREIT/Page 7

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)


	Quarter Ended June 30, 2013												Quarter Ended June 30, 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	$	105,013		$	9,685		$	1,429		$	116,127		$	101,198		$	9,247		$	6,643		$	117,088
Operating expenses		(44,390	)		(2,827	)		(173	)		(47,390	)		(43,599	)		(2,638	)		(3,209	)		(49,446	)

NET OPERATING INCOME		60,623			6,858			1,256			68,737			57,599			6,609			3,434			67,642
General and administrative expenses		(9,606	)		—			—			(9,606	)		(10,240	)		—			—			(10,240	)
Provision for employee separation expense		(1,035	)		—			—			(1,035	)		(796	)		—			—			(796	)
Other income		1,395			—			—			1,395			884			—			—			884
Project costs and other expenses		(198	)		—			—			(198	)		(39	)		—			—			(39	)
Interest expense, net		(27,689	)		(2,765	)		(587	)		(31,041	)		(30,815	)		(2,817	)		(980	)		(34,612	)
Depreciation on non real estate assets		(323	)		—			—			(323	)		(155	)		—			—			(155	)
Dividends on preferred shares		(3,962	)		—			—			(3,962	)		(1,845	)		—			—			(1,845	)

FFO		19,205			4,093			669			23,967			14,593			3,792			2,454			20,839
Depreciation on real estate assets		(35,128	)		(1,810	)		—			(36,938	)		(31,418	)		(1,840	)		(1,827	)		(35,085	)
Equity in income of partnerships		2,283			(2,283	)		—			—			1,952			(1,952	)		—			—
Operating results from discontinued operations		669			—			(669	)		—			627			—			(627	)		—
Dividends on preferred shares		3,962			—			—			3,962			1,845			—			—			1,845

Net loss	$	(9,009	)	$	—		$	—		$	(9,009	)	$	(12,401	)	$	—		$	—		$	(12,401	)


FFO	$	19,205		$	4,093		$	669		$	23,967		$	14,593		$	3,792		$	2,454		$	20,839
Provision for employee separation expenses		1,035			—			—			1,035			796			—			—			796
Accelerated amortization of deferred financing costs		112			—			—			112			—			—			—			—
Loss on hedge ineffectiveness		3,146			—			—			3,146			—			—			—			—

FFO AS ADJUSTED	$	23,498		$	4,093		$	669		$	28,260		$	15,389		$	3,792		$	2,454		$	21,635


FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	23,498		$	4,093		$	669		$	28,260		$	15,389		$	3,792		$	2,454		$	21,635
Adjustments:
Straight line rent		(408	)		(29	)		18			(419	)		(213	)		33			41			(139	)
Recurring capital expenditures		(2,090	)		(180	)		—			(2,270	)		(1,657	)		(106	)		—			(1,763	)
Tenant allowances		(7,001	)		(80	)		—			(7,081	)		(5,792	)		(182	)		(339	)		(6,313	)
Capitalized leasing costs		(1,185	)		—			—			(1,185	)		(1,176	)		—			—			(1,176	)
Amortization of mortgage loan premium		—			—			—			—			(88	)		—			—			(88	)
Amortization of above- and below-market lease intangibles		(318	)		(23	)		—			(341	)		(29	)		(31	)		2			(58	)
Amortization of exchangeable notes debt discount		—			—			—			—			342			—			—			342

FAD	$	12,496		$	3,781		$	687		$	16,964		$	6,776		$	3,506		$	2,158		$	12,440


Weighted average number of shares outstanding											63,540												55,143
Weighted average effect of full conversion of OP Units											2,228												2,309
Effect of common share equivalents											727												1,007

Total weighted average shares outstanding, including OP Units											66,495												58,459


FFO PER DILUTED SHARE AND OP UNIT										$	0.36											$	0.36


FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED										$	0.42											$	0.37


FAD PER DILUTED SHARE AND OP UNIT										$	0.26											$	0.21


DIVIDEND PER COMMON SHARE										$	0.18											$	0.16


PAYOUT RATIOS

Payout ratio of FFO											39.7	%⁽¹⁾											32.8	%⁽²⁾

Payout ratio of FFO as adjusted											34.6	%⁽¹⁾											32.5	%⁽²⁾

Payout ratio of FAD											65.3	%⁽¹⁾											48.7	%⁽²⁾

⁽¹⁾	Twelve months ended June 30, 2013.

⁽²⁾	Twelve months ended June 30, 2012.

PREIT/Page 8

Pennsylvania Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(in thousands, except per share amounts)


	Six Months Ended June 30, 2013												Six Months Ended June 30, 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	$	209,739		$	19,704		$	4,172		$	233,615		$	202,873		$	18,838		$	13,432		$	235,143
Operating expenses		(88,878	)		(5,798	)		(1,614	)		(96,290	)		(86,391	)		(5,565	)		(6,422	)		(98,378	)

NET OPERATING INCOME		120,861			13,906			2,558			137,325			116,482			13,273			7,010			136,765
General and administrative expenses		(18,462	)		—			—			(18,462	)		(20,124	)		—			—			(20,124	)
Provision for employee separation expense		(2,314	)		—			—			(2,314	)		(796	)		—			—			(796	)
Other income		2,283			—			—			2,283			1,645			—			—			1,645
Project costs and other expenses		(400	)		—			—			(400	)		(397	)		—			—			(397	)
Interest expense, net		(55,027	)		(5,531	)		(1,259	)		(61,817	)		(61,533	)		(5,637	)		(1,930	)		(69,100	)
Depreciation on non real estate assets		(548	)		—			—			(548	)		(348	)		—			—			(348	)
Preferred share dividends		(7,924	)		—						(7,924	)		(1,845	)		—			—			(1,845	)

FFO		38,469			8,375			1,299			48,143			33,084			7,636			5,080			45,800
Depreciation on real estate assets		(68,884	)		(3,639	)		—			(72,523	)		(63,197	)		(3,691	)		(3,574	)		(70,462	)
Equity in income of partnerships		4,736			(4,736	)		—			—			3,945			(3,945	)		—			—
Operating results from discontinued operations		1,299			—			(1,299	)		—			1,506			—			(1,506	)		—
Gains on sales of discontinued operations		33,254			—			—			33,254			—			—			—			—
Preferred share dividends		7,924			—			—			7,924			1,845			—			—			1,845

Net income (loss)	$	16,798		$	—		$	—		$	16,798		$	(22,817	)	$	—		$	—		$	(22,817	)


FFO	$	38,469		$	8,375		$	1,299		$	48,143		$	33,084		$	7,636		$	5,080		$	45,800
Provision for employee separation expenses		2,314			—			—			2,314			796			—			—			796
Loss on hedge ineffectiveness		2,682			—			—			2,682			—			—			—			—
Accelerated amortization of deferred financing costs		1,026			—			—			1,026			—			—			—			—

FFO AS ADJUSTED	$	44,491		$	8,375		$	1,299		$	54,165		$	33,880		$	7,636		$	5,080		$	46,596


FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
FFO AS ADJUSTED	$	44,491		$	8,375		$	1,299		$	54,165		$	33,880		$	7,636		$	5,080		$	46,596
Adjustments:
Straight line rent		(797	)		(72	)		40			(829	)		(399	)		73			73			(253	)
Recurring capital expenditures		(2,511	)		(203	)		—			(2,714	)		(1,792	)		(205	)		—			(1,997	)
Tenant allowances		(8,748	)		(180	)		—			(8,928	)		(7,723	)		(197	)		(325	)		(8,245	)
Capitalized leasing costs		(2,722	)		—			—			(2,722	)		(2,501	)		—			—			(2,501	)
Amortization of mortgage loan premium		—			—			—			—			(170	)		—			—			(170	)
Amortization of above- and below-market lease intangibles		(379	)		(51	)		—			(430	)		(147	)		(63	)		4			(206	)
Amortization of exchangeable notes debt discount		—			—			—			—			849			—			—			849

FAD	$	29,334		$	7,869		$	1,339		$	38,542		$	21,997		$	7,244		$	4,832		$	34,073


Weighted average number of shares outstanding											59,661												55,026
Weighted average effect of full conversion of OP Units											2,256												2,318
Effect of common share equivalents											780												947

Total weighted average shares outstanding, including OP Units											62,697												58,291


FFO PER DILUTED SHARE AND OP UNIT										$	0.77											$	0.79


FFO PER DILUTED SHARE AND OP UNIT AS ADJUSTED										$	0.86											$	0.80


FAD PER DILUTED SHARE AND OP UNIT										$	0.61											$	0.58


DIVIDEND PER COMMON SHARE										$	0.36											$	0.31


PAYOUT RATIOS

Payout ratio of FFO											42.1	%⁽¹⁾											31.7	%⁽²⁾

Payout ratio of FFO as adjusted											36.0	%⁽¹⁾											31.5	%⁽²⁾

Payout ratio of FAD											69.1	%⁽¹⁾											46.8	%⁽²⁾

⁽¹⁾	Twelve months ended June 30, 2013.

⁽²⁾	Twelve months ended June 30, 2012.

PREIT/Page 9

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
2nd Quarter		53		144,481		N/A		39.73		39.73			N/A			7.36

Total/Average		86		240,376		N/A	$	39.68	$	39.68			N/A		$	7.54

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

1st Quarter		73		216,780	$	35.21	$	36.93	$	1.72			4.9	%	$	0.04
2nd Quarter		107		249,256		34.98		36.81		1.83			5.2	%		—

Total/Average		180		466,036	$	35.09	$	36.87	$	1.78			5.1	%	$	0.02

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

1st Quarter		1		11,521	$	7.49	$	7.23	$	(0.26	)		-3.5	%	$	—
2nd Quarter		1		20,308		7.60		15.43		7.83			103.0	%		—

		2		31,829	$	7.56	$	12.46	$	4.90			64.8	%	$	—

Anchor Renewal:

1st Quarter		1		83,835	$	8.58	$	9.10	$	0.52			6.1	%	$	—
2nd Quarter		4		374,700		3.59		3.23		(0.36	)		-9.9	%		—

Total/Average		5		458,535	$	4.50	$	4.30	$	(0.20	)		-4.3	%	$	—

⁽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.

PREIT/Page 10

Pennsylvania Real Estate Investment Trust

Summarized Sales and Rent Per Square Foot and Occupancy Percentages


	June 30, 2013																June 30, 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
	% Rolling 12 Mo. NOI			Avg Comp Sales		Avg Gross Rent⁽¹⁾⁽²⁾		Occ Cost			Total			Non-Anchor			% Rolling 12 Mo. NOI			Avg Comp Sales		Avg Gross Rent⁽¹⁾⁽²⁾		Occ Cost			Total			Non-Anchor			Avg Comp Sales			Avg Gross Rent⁽¹⁾⁽²⁾			Occ Cost			Total			Non-Anchor
Premier Malls		31.9	%	$	540	$	65.93		12.7	%		97.2	%		95.7	%		31.6	%	$	536	$	63.03		12.4	%		94.8	%		92.4	%		0.7	%		4.6	%		0.3	%		2.4	%		3.3	%
Core Growth Malls		46.4	%	$	361	$	42.05		12.6	%		92.8	%		89.2	%		46.7	%	$	360	$	41.45		12.5	%		91.2	%		87.8	%		0.3	%		1.4	%		0.1	%		1.6	%		1.4	%
Opportunistic Malls		10.8	%	$	269	$	26.49		10.9	%		91.7	%		84.7	%		10.9	%	$	275	$	26.32		10.6	%		91.3	%		85.2	%		-2.2	%		0.6	%		0.3	%		0.4	%		-0.5	%
Non Core Malls		4.4	%	$	251	$	24.45		11.8	%		91.1	%		85.9	%		4.3	%	$	246	$	25.82		11.8	%		89.8	%		79.3	%		2.0	%		-5.3	%		0.0	%		1.3	%		6.6	%

Total Malls		93.5	%	$	384	$	43.73		12.4	%		93.2	%		89.6	%		93.5	%	$	383	$	42.67		12.2	%		91.7	%		87.6	%		0.3	%		2.5	%		0.2	%		1.5	%		2.0	%
Strip and Power Centers		4.5	%		N/A	$	18.13		N/A			94.5	%		92.5	%		4.6	%		N/A	$	18.17		N/A			94.5	%		92.5	%		N/A			-0.2	%		N/A			0.0	%		0.0	%

Total Retail Properties		98.0	%		N/A	$	39.34		N/A			93.3	%		89.9	%		98.1	%		N/A	$	38.49		N/A			91.9	%		88.1	%		N/A			2.2	%		N/A			1.4	%		1.8	%
Held for Sale Properties⁽³⁾		1.8	%		N/A	$	23.57		N/A			100.0	%		100.0	%		1.7	%		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	%			$	39.12					93.4	%		90.0	%		100.0	%			$	38.28					92.0	%		88.2	%					2.2	%					1.4	%		1.8	%

⁽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 $17.20 per square foot as of June 30, 2013 and $16.86 per square foot as of June 30, 2012.

⁽³⁾	Includes Christiana Center.

PREIT/Page 11

Pennsylvania Real Estate Investment Trust

Mall Occupancy Percentage and Sales Per Square Foot


	June 30, 2013											June 30, 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	$	638		94.1	%		92.9	%		14.3	%	$	630		91.9	%		90.2	%		12.9	%		1.3	%		2.2	%		2.7	%		1.4	%
Lehigh Valley Mall		577		97.8	%		96.4	%		11.6	%		582		96.5	%		94.2	%		11.4	%		-0.9	%		1.3	%		2.2	%		0.2	%
Woodland Mall		528		98.1	%		98.1	%		11.6	%		543		92.0	%		92.0	%		12.1	%		-2.8	%		6.1	%		6.1	%		-0.5	%
Jacksonville Mall		471		99.7	%		99.3	%		11.8	%		515		98.7	%		97.5	%		10.3	%		-8.5	%		1.0	%		1.8	%		1.5	%
Dartmouth Mall		447		96.2	%		93.7	%		11.0	%		433		96.9	%		95.0	%		11.2	%		3.2	%		-0.7	%		-1.3	%		-0.2	%
Willow Grove Park		444		98.2	%		96.3	%		13.9	%		399		93.4	%		88.6	%		15.8	%		11.3	%		4.8	%		7.7	%		-1.9	%

Premier Malls Subtotal	$	540		97.2	%		95.7	%		12.7	%	$	536		94.8	%		92.4	%		12.4	%		0.7	%		2.4	%		3.3	%		0.3	%


Core Growth Malls
Springfield Mall	$	398		94.5	%		94.5	%		14.4	%	$	390		87.9	%		87.9	%		14.4	%		2.1	%		6.6	%		6.6	%		0.0	%
Wyoming Valley Mall		397		96.6	%		90.3	%		12.0	%		382		96.9	%		91.1	%		11.7	%		3.9	%		-0.3	%		-0.8	%		0.3	%
Patrick Henry Mall		395		95.3	%		93.1	%		14.3	%		394		93.0	%		86.4	%		14.2	%		0.3	%		2.3	%		6.7	%		0.1	%
Valley View Mall		386		94.8	%		92.9	%		11.9	%		379		96.9	%		95.8	%		11.5	%		1.8	%		-2.1	%		-2.9	%		0.4	%
The Mall at Prince Georges		383		96.1	%		91.7	%		14.5	%		385		97.6	%		95.0	%		14.6	%		-0.5	%		-1.5	%		-3.3	%		-0.1	%
Capital City Mall		381		97.6	%		95.9	%		12.0	%		361		97.7	%		96.0	%		11.7	%		5.5	%		-0.1	%		-0.1	%		0.3	%
Francis Scott Key Mall		370		97.0	%		95.0	%		11.0	%		344		95.9	%		93.3	%		11.5	%		7.6	%		1.1	%		1.7	%		-0.5	%
Viewmont Mall		369		99.1	%		97.6	%		13.2	%		375		99.2	%		98.0	%		12.6	%		-1.6	%		-0.1	%		-0.4	%		0.6	%
Valley Mall		361		95.7	%		92.5	%		11.0	%		375		94.9	%		91.3	%		11.1	%		-3.7	%		0.8	%		1.2	%		-0.1	%
The Gallery at Market East		357		77.1	%		78.7	%		14.7	%		382		61.5	%		77.9	%		14.3	%		-6.5	%		15.6	%		0.8	%		0.4	%
Crossroads Mall		355		95.0	%		89.2	%		9.6	%		356		95.9	%		91.2	%		8.9	%		-0.3	%		-0.9	%		-2.0	%		0.7	%
Moorestown Mall		347		86.9	%		67.2	%		14.6	%		362		88.9	%		72.4	%		14.5	%		-4.1	%		-2.0	%		-5.2	%		0.1	%
Magnolia Mall		342		99.3	%		98.5	%		11.7	%		330		98.2	%		95.8	%		12.5	%		3.6	%		1.1	%		2.7	%		-0.8	%
Plymouth Meeting Mall		328		89.6	%		84.2	%		10.1	%		336		84.8	%		76.9	%		10.3	%		-2.4	%		4.8	%		7.3	%		-0.2	%
Logan Valley Mall		327		96.7	%		92.1	%		11.3	%		324		93.4	%		84.2	%		11.4	%		0.9	%		3.3	%		7.9	%		-0.1	%
Exton Square Mall		322		93.4	%		84.7	%		13.7	%		340		91.8	%		82.0	%		13.5	%		-5.3	%		1.6	%		2.7	%		0.2	%
Gadsden Mall		322		96.0	%		90.0	%		10.5	%		316		93.3	%		83.2	%		9.9	%		1.9	%		2.7	%		6.8	%		0.6	%
Cumberland Mall		322		92.2	%		87.1	%		13.1	%		324		93.8	%		89.7	%		12.9	%		-0.6	%		-1.6	%		-2.6	%		0.2	%

Core Growth Malls Subtotal	$	361		92.8	%		89.2	%		12.6	%	$	360		91.2	%		87.8	%		12.5	%		0.3	%		1.6	%		1.4	%		0.1	%


Opportunistic Malls
Palmer Park Mall	$	295		93.1	%		77.9	%		11.9	%	$	298		94.4	%		82.0	%		11.5	%		-1.0	%		-1.3	%		-4.1	%		0.4	%
Wiregrass Commons Mall		287		92.7	%		89.4	%		11.3	%		285		91.1	%		87.2	%		10.8	%		0.7	%		1.6	%		2.2	%		0.5	%
New River Valley Mall		283		97.7	%		96.0	%		10.8	%		289		97.8	%		96.4	%		10.2	%		-2.1	%		-0.1	%		-0.4	%		0.6	%
Uniontown Mall		273		95.8	%		90.6	%		10.9	%		282		88.7	%		82.4	%		10.1	%		-3.2	%		7.1	%		8.2	%		0.8	%
Washington Crown Center		271		85.9	%		73.8	%		10.5	%		253		93.2	%		87.5	%		10.6	%		7.1	%		-7.3	%		-13.7	%		-0.1	%
Lycoming Mall		264		96.7	%		93.7	%		10.8	%		272		96.4	%		93.3	%		10.1	%		-2.9	%		0.3	%		0.4	%		0.7	%
Nittany Mall		252		94.1	%		88.0	%		10.5	%		275		94.7	%		89.2	%		10.5	%		-8.4	%		-0.6	%		-1.2	%		0.0	%
Voorhees Town Center		217		66.5	%		66.0	%		11.0	%		222		63.5	%		63.0	%		11.1	%		-2.3	%		3.0	%		3.0	%		-0.1	%

Opportunistic Malls Subtotal	$	269		91.7	%		84.7	%		10.9	%	$	275		91.3	%		85.2	%		10.6	%		-2.2	%		0.4	%		-0.5	%		0.3	%


Non Core Malls
North Hanover Mall	$	264		83.9	%		85.9	%		13.2	%	$	262		93.4	%		84.3	%		13.3	%		0.8	%		-9.5	%		1.6	%		-0.1	%
Beaver Valley Mall		259		94.3	%		87.7	%		12.4	%		245		91.0	%		80.8	%		12.7	%		5.7	%		3.3	%		6.9	%		-0.3	%
South Mall		252		93.6	%		90.3	%		12.6	%		258		85.6	%		78.1	%		11.7	%		-2.3	%		8.0	%		12.2	%		0.9	%
Chambersburg Mall		231		89.0	%		76.5	%		9.1	%		227		87.9	%		74.2	%		9.5	%		1.8	%		1.1	%		2.3	%		-0.4	%

Non Core Malls Subtotal	$	251		91.1	%		85.9	%		11.8	%	$	246		89.8	%		79.3	%		11.8	%		2.0	%		1.3	%		6.6	%		0.0	%


Same Store Malls weighted average	$	384		93.2	%		89.6	%		12.4	%	$	383		91.7	%		87.6	%		12.2	%		0.3	%		1.5	%		2.0	%		0.2	%

Sold Properties		N/A		N/A			N/A			N/A		$	249		87.9	%		73.7	%		13.3	%		N/A			N/A			N/A			N/A

Total Reported weighted average	$	384		93.2	%		89.6	%		12.4	%	$	378		91.5	%		86.8	%		12.2	%		1.7	%		1.7	%		2.8	%		0.2	%

⁽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.

PREIT/Page 12

Pennsylvania Real Estate Investment Trust

Strip and Power Center Occupancy Percentages


	June 30, 2013						June 30, 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		98.2	%		95.0	%		90.0	%		71.7	%		8.2	%		23.3	%

Whitehall Mall		92.6	%		84.9	%		93.0	%		85.5	%		-0.4	%		-0.6	%


Continuing Operations Subtotal		94.5	%		92.5	%		94.5	%		92.5	%		0.0	%		0.0	%


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		95.2	%		93.0	%		95.0	%		92.8	%		0.2	%		0.2	%

PREIT/Page 13

Pennsylvania Real Estate Investment Trust

Top Twenty Tenants


Tenant⁽¹⁾	Total Number of Locations⁽²⁾		Percentage of Annualized Gross Rent⁽³⁾
Gap, Inc.		41		2.9	%

Limited Brands, Inc.		70		2.8	%

American Eagle Outfitters, Inc.		40		2.7	%

J.C. Penney Company, Inc.		28		2.6	%

Foot Locker, Inc.		60		2.6	%

Sears Holding Corporation		27		2.1	%

Signet Jewelers Limited		38		1.5	%

Zale Corporation		67		1.5	%

Commonwealth of Pennsylvania		2		1.4	%

Luxottica Group S.p.A.		46		1.4	%

Abercrombie & Fitch Co.		19		1.3	%

Ascena Retail Group, Inc.		44		1.3	%

Genesco, Inc.		58		1.3	%

Macy’s, Inc.		24		1.2	%

Aeropostale, Inc.		39		1.2	%

The Children’s Place Retail Stores, Inc.		26		1.1	%

Shoe Show, Inc.		29		1.1	%

The Finish Line, Inc.		27		1.1	%

Dick’s Sporting Goods, Inc.		9		1.1	%

Boscov’s Department Store		9		1.0	%


Total Top 20 Tenants		703		33.1	%


Total Leases		2,930		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.

PREIT/Page 14

Pennsylvania Real Estate Investment Trust

Lease Expirations as of June 30, 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		183		563,435		4.9	%	$	19,831	$	18,605		5.4	%	$	35.20
2013		158		459,694		4.0	%		14,130		12,934		3.8	%		30.74
2014		521		1,606,496		14.1	%		48,996		46,740		13.6	%		30.50
2015		378		1,513,809		13.3	%		47,521		43,378		12.7	%		31.39
2016		364		1,510,089		13.3	%		52,251		47,125		13.8	%		34.60
2017		307		1,085,985		9.5	%		38,502		34,391		10.1	%		35.45
2018		223		1,098,835		9.6	%		36,112		32,979		9.6	%		32.86
2019		156		740,581		6.5	%		25,682		23,879		7.0	%		34.68
2020		130		830,179		7.3	%		24,516		23,065		6.7	%		29.53
2021		124		527,505		4.6	%		19,098		17,224		5.0	%		36.20
2022		133		651,410		5.7	%		21,694		19,320		5.6	%		33.30
Thereafter		150		824,564		7.2	%		25,420		22,833		6.7	%		30.83

Total/Average		2,827		11,412,582		100.0	%	$	373,753	$	342,473		100.0	%	$	32.75


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		2		121,728		1.1	%	$	602	$	602		1.1	%	$	4.95
2014		13		1,228,562		11.5	%		5,400		4,902		9.0	%		4.40
2015		15		1,436,717		13.4	%		6,832		6,832		12.5	%		4.76
2016		20		1,927,216		18.0	%		7,807		7,807		14.3	%		4.05
2017		11		1,398,035		13.1	%		5,488		4,631		8.5	%		3.93
2018		13		1,260,294		11.8	%		5,515		5,515		10.1	%		4.38
2019		9		1,027,654		9.6	%		3,372		3,372		6.2	%		3.28
2020		3		301,030		2.8	%		863		863		1.6	%		2.87
2021		4		481,791		4.5	%		5,527		4,177		7.7	%		11.47
2022		4		521,173		4.9	%		2,645		2,645		4.8	%		5.08
Thereafter		9		993,146		9.3	%		13,194		13,194		24.2	%		13.29

Total/Average		103		10,697,346		100.0	%	$	57,245	$	54,540		100.0	%	$	5.35

⁽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 304,100 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.

PREIT/Page 15

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2013

(GLA in thousands)


						*Landlord Owned Anchors*									*Anchor Stores Not Owned*								Non-anchor occupied
Properties	State																						Large Format		Small Shop		*Vacant*		Total GLA
Premier Malls
Cherry Hill Mall	NJ	100	%	2003	1961/2009		138	—	—	—	—	—	—	138		305	174	—	—	—	—	479		204		437		49		1,307
Dartmouth Mall	MA	100	%	1997	1971/2000		—	—	100	108	—	—	—	208		140	—	—	—	—	—	140		142		160		21		671
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		381		21		1,169
Willow Grove Park	PA	100	%	2000-03	1982/2001		40	225	125	—	—	—	—	390		237	—	176	—	—	—	413		67		279		13		1,162
Woodland Mall	MI	100	%	2005	1968/1998		—	—	—	—	—	—	—	0		157	255	313	—	—	—	725		147		271		8		1,151

Total Premier Malls							178	437	277	225	165	—	73	1,355		839	636	489	—	—	—	1,964		842		1,675		113		5,949


Core Growth Malls
Capital City Mall	PA	100	%	2003	1974/2005		—	—	103	101	—	—	—	204		120	—	—	—	—	—	120		81		197		12		614
Crossroads Mall	WV	100	%	2003	1981		—	—	90	87	—	—	78	255		—	—	—	—	—	—	0		74		123		24		476
Cumberland Mall	NJ	100	%	2005	1973/2003		—	—	51	—	—	—	213	264		—	—	—	155	—	118	273		200		154		52		943
Exton Square Mall	PA	100	%	2003	1973/2000		—	—	118	144	178	—	—	440		181	—	96	—	—	—	277		27		260		52		1,056
Francis Scott Key Mall	MD	100	%	2003	1978/1991		—	—	101	121	—	—	—	222		139	—	—	—	—	—	139		141		193		18		713
Gadsden Mall	AL	100	%	2005	1974/1990		—	—	88	112	—	—	101	301		—	—	—	—	—	—	0		91		90		20		502
The Gallery at Market East⁽²⁾	PA	100	%	2003	1977/1990		—	—	—	133	—	—	621	754		—	—	—	—	—	—	0		119		224		327		1,424
Logan Valley Mall	PA	100	%	2003	1960/1997		—	150	146	159	—	—	—	455		—	—	—	—	—	—	0		59		242		26		782
Magnolia Mall	SC	100	%	1997	1979/2007		—	—	104	91	—	—	148	343		—	—	—	—	—	—	0		99		169		4		615
Moorestown Mall	NJ	100	%	2003	1963/2008		—	—	—	206	203	—	—	409		200	—	—	—	—	121	321		15		167		89		1,001
Patrick Henry Mall	VA	100	%	2003	1988/2005		—	—	85	—	—	—	50	135		140	—	—	—	—	145	285		38		237		20		715
Plymouth Meeting Mall	PA	100	%	2003	1966/2009		—	—	—	—	189	—	65	254		215	—	—	—	—	—	215		198		208		76		951
The Mall at Prince Georges	MD	100	%	1998	1959/2004		—	196	149	—	—	—	135	480		—	—	—	—	—	—	0		127		275		36		918
Springfield Mall	PA	50	%	2005	1974/1997		—	—	—	—	—	—	—	0		192	—	—	—	—	196	388		10		201		12		611
Valley Mall	MD	100	%	2003	1974/1999		—	—	157	—	—	123	—	280		120	—	123	—	—	—	243		115		247		29		914
Valley View Mall	WI	100	%	2003	1980/2001		—	—	96	—	—	—	—	96		100	—	113	—	42	—	255		74		163		18		606
Viewmont Mall	PA	100	%	2003	1968/2006		—	—	193	193	—	—	—	386		140	—	—	—	—	—	140		83		152		6		767
Wyoming Valley Mall	PA	100	%	2003	1971/2006		—	146	173	118	—	155	—	592		—	—	—	—	—	—	0		103		184		31		910

Core Growth Malls							—	492	1,654	1,465	570	278	1,411	5,870		1,547	—	332	155	42	580	2,656		1,654		3,486		852		14,518

(continued on next page)

PREIT/Page 16

Pennsylvania Real Estate Investment Trust

Property Information as of June 30, 2013 (continued)

(GLA in thousands)


						*Landlord Owned Anchors*									*Anchor Stores Not Owned*								Non-anchor occupied
Properties	State																						Large Format		Small Shop		*Vacant*		Total GLA
Opportunistic Malls
Lycoming Mall	PA	100	%	2003	1978/2007		—	—	62	130	—	60	81	333		120	—	—	—	—	—	120		162		176		23		814
New River Valley Mall	VA	100	%	2003	1988/2007		—	—	50	57	—	—	88	195		—	—	—	—	—	—	0		135		124		11		465
Nittany Mall	PA	100	%	2003	1968/1990		—	—	63	98	—	61	—	222		95	—	—	—	—	—	95		13		178		26		534
Palmer Park Mall	PA	100	%	1972/2003	1972/1998		—	—	—	—	192	122	—	314		—	—	—	—	—	—	0		0		112		32		458
Uniontown Mall	PA	100	%	2003	1972/1990		—	—	63	100	—	80	148	391		—	—	—	—	—	—	0		102		178		29		700
Voorhees Town Center	NJ	100	%	2003	1970/2007		—	—	—	—	4	—	—	4		224	—	—	173	—	24	421		68		135		104		732
Washington Crown Center	PA	100	%	2003	1969/1999		—	—	—	83	—	78	84	245		140	—	—	—	—	—	140		64		149		76		674
Wiregrass Commons Mall	AL	100	%	2003	1986/2008		—	—	—	—	—	—	95	95		—	84	—	—	—	248	332		10		177		22		636

Opportunistic Malls							—	—	238	468	196	401	496	1,799		579	84	—	173	—	272	1,108		554		1,229		323		5,013


Non Core Malls
Beaver Valley Mall	PA	100	%	2002	1970/1991		—	—	126	191	194	—	—	511		205	—	—	—	—	—	205		175		209		54		1,154
Chambersburg Mall	PA	100	%	2003	1982		—	—	61	56	—	55	70	242		—	—	—	—	—	—	0		20		143		50		455
North Hanover Mall	PA	100	%	2003	1967/1999		—	—	99	104	—	—	51	254		—	—	—	—	—	—	0		21		105		73		453
South Mall	PA	100	%	2003	1975/1992		—	—	—	—	—	102	38	140		—	—	—	—	—	—	0		149		91		26		406

Non Core Malls							—	—	286	351	194	157	159	1,147		205	—	—	—	—	—	205		365		548		203		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		21		22		2		274
Whitehall Mall	PA	50	%	1964	1964/1998		—	—	—	213	—	—	82	295		—	—	—	—	—	—	—		196		41		42		574

Strip and Power Centers							—	—	—	213	—	—	313	526		—	—	—	—	—	1,020	1,020		1,148		216		110		3,020


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

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



Portfolio Totals							178	929	2,455	2,722	1,125	836	2,643	10,888		3,170	720	821	328	42	1,872	6,953		4,631		7,198		1,601		31,271

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

⁽²⁾	Includes 907 Market Street, which was acquired in April 2013.

PREIT/Page 17

Pennsylvania Real Estate Investment Trust

Department Store Lease Expirations as of June 30, 2013


	*Department Store Tenants*
Properties
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	—		2018		—		—		—		—	—		—
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 ⁽⁵⁾		—	—		—		2032	—		—		—		—		—		—	2014		—
Logan Valley Mall		—	—		—		—	—		2017		—		—		2015		—	2016		—
Magnolia Mall		2016	—		—		—	—		2017		—		—		—		—	2014		—
Moorestown Mall		—	—		2015		—	—		—		—		(2	)	(2	)	—	2022		—
Patrick Henry Mall		—	—		—		—	(2	)	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)

PREIT/Page 18

Pennsylvania Real Estate Investment Trust

Department Store Lease Expirations as of June 30, 2013 (continued)


	*Department Store Tenants*
Properties
Opportunistic Malls
Lycoming Mall		—		2016	—		2019	—		2015		—	—	(2	)	—	2018	—
New River Valley Mall ⁽⁶⁾		2020		—	—		—	—		2018		—	—	—		—	2013	—
Nittany Mall		—		2018	—		—	—		2015		—	—	(2	)	—	2015	—
Palmer Park Mall		—		2019	2018		—	—		—		—	—	—		—	—	—
Uniontown Mall		—		2016	—		2019	—		2015		—	—	—		—	2018	—
Voorhees Town Center		—		—	(2	)	—	—		—		—	—	(2	)	—	—	—
Washington Crown Center		—		2018	—		—	—		—		—	—	(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	0		24		1	0	5		2	22	1

Total Non-PREIT Owned Department Stores		1		1	2		0	2		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.

⁽⁵⁾	Includes K-Mart located at 907 Market Street, which was acquired in April 2013.

⁽⁶⁾	Sears at this property closed on July 15.

PREIT/Page 19

Pennsylvania Real Estate Investment Trust

Condensed Balance Sheet

Proportionate Consolidation Method⁽¹⁾

(in thousands, except per share amounts)


	June 30, 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	$	3,465,804		$	217,191		$	3,682,995		$	3,395,681		$	216,939		$	3,612,620
Construction in progress		74,673			1,151			75,824			68,619			811			69,430
Land held for development		12,649			—			12,649			13,240			—			13,240

Total investments in real estate		3,553,126			218,342			3,771,468			3,477,540			217,750			3,695,290
Accumulated depreciation		(971,715	)		(83,255	)		(1,054,970	)		(907,928	)		(80,112	)		(988,040	)

Net investments in real estate		2,581,411			135,087			2,716,498			2,569,612			137,638			2,707,250

Investments in partnerships, at equity		15,193			(15,193	)		—			14,855			(14,855	)		—
Other assets:
Cash and cash equivalents		17,525			6,064			23,589			33,990			4,883			38,873
Rent and other receivables⁽²⁾		32,482			2,032			34,514			38,473			1,824			40,297
Intangible assets, net		10,789			86			10,875			8,673			108			8,781
Deferred costs and other assets, net		92,643			15,186			107,829			97,399			15,585			112,984
Assets held for sale		29,956			—			29,956			114,622			—			114,622

Total other assets		198,588			8,175			206,763			308,012			7,545			315,557

Total assets	$	2,779,999		$	143,262		$	2,923,261		$	2,877,624		$	145,183		$	3,022,807


LIABILITIES AND EQUITY
Liabilities:
Mortgage loans	$	1,619,155		$	200,103		$	1,819,258		$	1,718,052		$	201,717		$	1,919,769
Term Loans		—			—			—			182,000			—			182,000
Revolving Facility		35,000			—			35,000			—			—			—
Tenants’ deposits and deferred rent		9,997			3,222			13,219			14,862			4,027			18,889
Distributions in excess of partnership investments		64,000			(64,000	)		—			64,874			(64,874	)		—
Fair value of derivative instruments		3,056			—			3,056			9,742			—			9,742
Liabilities related to assets held for sale		50,275			—			50,275			102,417			—			102,417
Other liabilities		64,884			3,937			68,821			72,448			4,313			76,761

Total liabilities		1,846,367			143,262			1,989,629			2,164,395			145,183			2,309,578


Equity:
Total equity		933,632			—			933,632			713,229			—			713,229

Total liabilities and equity	$	2,779,999		$	143,262		$	2,923,261		$	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 $28.4 million ($26.0 million consolidated, $2.4 million unconsolidated) as of June 30, 2013 and $27.5 million ($25.2 million consolidated, $2.3 million unconsolidated) as of December 31, 2012.

PREIT/Page 20

Pennsylvania Real Estate Investment Trust

Investment in Real Estate⁽¹⁾

(in thousands)


	June 30, 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	$	70,849	$	—	$	25,847	$	45,002	$	70,831	$	—	$	24,292	$	46,539
Capital City Mall		98,876		—		29,645		69,231		96,517		1,041		27,761		69,797
Chambersburg Mall		38,481		—		10,419		28,062		38,432		—		9,890		28,542
Cherry Hill Mall		458,367		37		128,466		329,938		457,756		30		117,401		340,385
Crossroads Mall		45,900		331		12,056		34,175		45,719		264		11,192		34,791
Cumberland Mall		66,107		—		14,159		51,948		65,054		—		13,005		52,049
Dartmouth Mall		63,667		—		30,375		33,292		62,841		—		29,459		33,382
Exton Square Mall		151,032		149		35,281		115,900		150,680		129		33,389		117,420
Francis Scott Key Mall		79,679		371		23,549		56,501		79,417		92		22,075		57,434
Gadsden Mall		62,294		—		13,359		48,935		63,295		—		13,474		49,821
The Gallery at Market East		242,836		4,937		40,546		207,227		183,572		5,742		35,470		153,844
Jacksonville Mall		81,459		—		22,817		58,642		81,390		—		21,399		59,991
Logan Valley Mall		97,637		—		28,241		69,396		97,679		—		27,029		70,650
Lycoming Mall		78,120		—		22,405		55,715		78,099		—		21,033		57,066
Magnolia Mall		89,405		300		31,894		57,811		88,976		59		30,183		58,852
Moorestown Mall		93,571		12,315		31,989		73,897		93,454		2,943		30,495		65,902
New River Valley Mall		58,851		—		22,833		36,018		58,804		—		21,249		37,555
Nittany Mall		44,433		—		12,303		32,130		44,432		—		11,644		32,788
North Hanover Mall		30,329		6		7,148		23,187		29,973		14		6,305		23,682
Palmer Park Mall		34,539		—		13,937		20,602		34,536		—		13,562		20,974
Patrick Henry Mall		143,907		—		45,259		98,648		143,422		—		42,453		100,969
Plymouth Meeting Mall		165,927		67		43,543		122,451		165,178		76		39,975		125,279
The Mall at Prince Georges		102,229		160		41,381		61,008		102,213		—		39,603		62,610
South Mall		36,024		—		8,251		27,773		35,924		—		7,796		28,128
Uniontown Mall		42,222		88		13,462		28,848		42,173		—		12,652		29,521
Valley Mall		96,613		—		27,445		69,168		95,160		—		26,094		69,066
Valley View Mall		68,921		—		17,252		51,669		68,486		—		16,242		52,244
Viewmont Mall		91,864		—		24,805		67,059		91,851		—		23,268		68,583
Voorhees Town Center		92,517		1,422		25,624		68,315		91,495		1,447		22,568		70,374
Washington Crown Center		40,869		474		14,790		26,553		40,802		29		14,359		26,472
Willow Grove Park		230,332		—		61,303		169,029		230,195		5		57,502		172,698
Wiregrass Commons Mall		54,064		—		13,725		40,339		53,897		—		12,693		41,204
Woodland Mall		190,273		—		41,749		148,524		188,121		—		38,681		149,440
Wyoming Valley Mall		109,655		—		31,973		77,682		109,288		—		30,018		79,270

Total Consolidated Malls		3,451,849		20,657		967,831		2,504,675		3,379,662		11,871		904,211		2,487,322

Unconsolidated Malls
Lehigh Valley Mall		45,430		372		21,134		24,668		45,483		32		20,484		25,031
Springfield Mall		56,884		6		14,368		42,522		56,766		6		13,526		43,246

Total Unconsolidated Malls		102,314		378		35,502		67,190		102,249		38		34,010		68,277


TOTAL MALLS	$	3,554,163	$	21,035	$	1,003,333	$	2,571,865	$	3,481,911	$	11,909	$	938,221	$	2,555,599

(continued on next page)

PREIT/Page 21

Pennsylvania Real Estate Investment Trust

Investment in Real Estate⁽¹⁾ (continued)

(in thousands)


	June 30, 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	$	12,440	$	—	$	3,862	$	8,578	$	12,441	$	—	$	3,693	$	8,748
Monroe Marketplace		1,515		—		22		1,493		3,578		—		24		3,554

Total Consolidated Strip and Power Centers		13,955		—		3,884		10,071		16,019		—		3,717		12,302

Unconsolidated Strip and Power Centers
Metroplex Shopping Center		42,890		—		19,712		23,178		42,890		—		18,911		23,979
The Court at Oxford Valley		28,130		4		10,023		18,111		27,953		4		9,747		18,210
Red Rose Commons		13,617		1		4,830		8,788		13,617		1		4,652		8,966
Springfield Park		7,197		—		1,913		5,284		7,195		—		1,837		5,358
Whitehall Mall		16,793		—		9,458		7,335		16,785		7		9,243		7,549

Total Unconsolidated Strip and Power Centers		108,627		5		45,936		62,696		108,440		12		44,390		64,062

TOTAL STRIP AND POWER CENTERS	$	122,582	$	5	$	49,820	$	72,767	$	124,459	$	12	$	48,107	$	76,364


Consolidated Properties Under Development
Springhills	$	—	$	19,230	$	—	$	19,230	$	—	$	21,961	$	—	$	21,961
White Clay Point		—		34,786		—		34,786		—		34,787		—		34,787

Total Consolidated Properties Under Development		—		54,016		—		54,016		—		56,748		—		56,748

Unconsolidated Properties Under Development
Pavilion at Market East		6,250		768		1,817		5,201		6,250		761		1,712		5,299

Total Unconsolidated Properties Under Development		6,250		768		1,817		5,201		6,250		761		1,712		5,299

Other Properties
Land held for development - consolidated		12,649		—		—		12,649		13,240		—		—		13,240

Total Other Properties		12,649		—		—		12,649		13,240		—		—		13,240

TOTAL DEVELOPMENT AND OTHER	$	18,899	$	54,784	$	1,817	$	71,866	$	19,490	$	57,509	$	1,712	$	75,287


TOTAL INVESTMENT IN REAL ESTATE	$	3,695,644	$	75,824	$	1,054,970	$	2,716,498	$	3,625,860	$	69,430	$	988,040	$	2,707,250


CONSOLIDATED PROPERTIES	$	3,478,453	$	74,673	$	971,715	$	2,581,411	$	3,408,921	$	68,619	$	907,928	$	2,569,612

UNCONSOLIDATED PROPERTIES		217,191		1,151		83,255		135,087		216,939		811		80,112		137,638


TOTAL INVESTMENT IN REAL ESTATE	$	3,695,644	$	75,824	$	1,054,970	$	2,716,498	$	3,625,860	$	69,430	$	988,040	$	2,707,250

⁽¹⁾

PREIT/Page 22

Pennsylvania Real Estate Investment Trust

Capital Expenditures

(in thousands)


	Quarter Ended June 30, 2013								Six Months Ended June 30, 2013
	Consolidated		Unconsolidated		Discontinued Operations		Total		Consolidated		Unconsolidated		Discontinued Operations		Total
Redevelopment projects with incremental GLA and/or anchor replacement⁽¹⁾	$	9,287	$	149	$	—	$	9,436	$	12,380	$	344	$	—	$	12,724
New development projects		—		—		—		—		—		7		—		7
Tenant allowances		7,001		80		—		7,081		8,748		180		—		8,928
Recurring capital expenditures:
CAM expenditures		1,597		180		—		1,777		1,832		203		—		2,035
Non-CAM expenditures		493		—		—		493		679		—		—		679

Total recurring capital expenditures		2,090		180		—		2,270		2,511		203		—		2,714

Total	$	18,378	$	409	$	—	$	18,787	$	23,639	$	734	$	—	$	24,373

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

PREIT/Page 23

Pennsylvania Real Estate Investment Trust

Debt Analysis as of June 30, 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⁾	$	1,668,528			87.8	%	$	—			0.0	%	$	1,668,528			87.8	%
Unconsolidated mortgage loans payable		196,424			10.3	%		205			0.0	%		196,629			10.3	%
2013 Credit Facility⁽³⁾		35,000			1.9	%		—			0.0	%		35,000			1.9	%

TOTAL OUTSTANDING DEBT	$	1,899,952			100.0	%	$	205			0.0	%	$	1,900,157			100.0	%


AVERAGE STATED INTEREST RATE		5.28	%					3.00	%					5.28	%

⁽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 June 30, 2013, for presentation purposes, we have designated interest rate swap agreements to effectively fix $35.0 million of the underlying LIBOR associated with the 2013 Revolving Facility until September 10, 2013 at a current interest rate of 3.725%, excluding the spread on the related debt.


Average Debt Balance
					2010 Credit Facility
		Mortgage Debt⁽¹⁾			Revolving Facility			Term Loans			2013 Revolving Facility		TOTAL
Beginning Balance	3/31/2013	$	1,929,779		$	60,000		$	97,500		$	—	$	2,087,279
Mortgage loan amortization			(4,883	)		—			—			—		(4,883	)
Jacksonville Mall mortgage repayment			(56,265	)		—			—			—		(56,265	)
2013 Revolving Facility, net			—			—			—			35,000		35,000
2010 Credit Facility, net			—			(60,000	)		(97,500	)		—		(157,500	)


Ending Balance	6/30/2013	$	1,868,631		$	—		$	—		$	35,000	$	1,903,631


Weighted Average Balance		$	1,909,627		$	11,978		$	18,214		$	51,731	$	1,991,550

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


Debt Maturities⁽¹⁾
Year	Scheduled Amortization⁽²⁾		Mortgage Balance at Maturity⁽²⁾		2013 Revolving Facility		Total Debt
2013	$	10,236	$	128,000	$	—	$	138,236
2014		21,973		66,733		—		88,706
2015		25,655		306,020		—		331,675
2016		15,981		243,745		35,000		294,726
2017		15,250		153,283		—		168,533
2018		14,938		145,678		—		160,616
Thereafter		51,133		670,006		—		721,139

	$	155,166	$	1,713,465	$	35,000	$	1,903,631

⁽¹⁾	The weighted average period to mortgage maturity is 5.49 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	$	128,000		5.82	%
2014		67,047		7.50	%
2015		323,904		5.69	%
2016		257,392		5.32	%
2017		153,679		5.51	%
Thereafter		938,609		4.84	%

Total	$	1,868,631		5.27	%

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

PREIT/Page 24

Pennsylvania Real Estate Investment Trust

Debt Schedule as of June 30, 2013

(in thousands)


	Debt⁽¹⁾		Interest Rate			Annual Debt Service		Balance at Maturity		Initial Maturity Date	Fully Extended Maturity Date
Mortgage Loans
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		67,047		7.50	%		5,873		66,733	Jan 2014	Jan 2014
Springfield East⁽²⁾		2,155		5.39	%		92		2,061	Mar 2015	Mar 2020
Springfield Park⁽²⁾		2,530		5.39	%		108		2,419	Mar 2015	Mar 2020
Magnolia Mall		57,693		5.33	%		4,413		54,965	July 2015	July 2015
Patrick Henry Mall		88,372		6.34	%		7,743		83,210	Oct 2015	Oct 2015
Springfield Mall⁽²⁾		32,179		4.77	%		2,118		30,740	Nov 2015	Nov 2015
Willow Grove Park		140,975		5.65	%		11,083		132,624	Dec 2015	Dec 2015
Valley Mall		83,250		5.49	%		5,014		78,996	Mar 2016	Mar 2016
Woodland Mall		147,616		5.58	%		10,760		140,484	Apr 2016	Apr 2016
801 Market Street⁽²⁾		26,526		3.34	%		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
Pavilion East Associates⁽²⁾		3,474		6.44	%		253		3,283	Aug 2017	Aug 2017
Francis Scott Key Mall⁽²⁾		62,625		5.26	%		3,297		62,625	Mar 2018	Mar 2018
Viewmont Mall⁽²⁾		48,000		5.50	%		2,638		48,000	Mar 2018	Mar 2018
Lycoming Mall		35,289		3.72	%		3,001		30,907	Mar 2018	Mar 2018
Whitehall Mall		5,407		7.00	%		574		4,145	Nov 2018	Nov 2018
New River Valley Mall⁽²⁾⁽³⁾		28,050		4.38	%		1,229		28,050	Jan 2019	Jan 2019
Valley View Mall		30,865		5.95	%		2,290		27,161	July 2020	July 2020
Lehigh Valley Mall		67,285		5.88	%		4,972		58,519	July 2020	July 2020
Red Rose Commons		14,552		5.14	%		978		12,379	July 2021	July 2021
The Court at Oxford Valley		29,658		5.56	%		1,668		25,782	July 2021	July 2021
Capital City Mall		64,663		5.30	%		4,379		54,715	Mar 2022	Mar 2022
Christiana Center⁽⁴⁾		49,373		4.64	%		3,090		40,710	Aug 2022	Aug 2022
Cumberland Mall		51,056		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		66,813		3.97	%		3,825		53,300	Apr 2023	Apr 2023
Metroplex Shopping Center		42,658		5.00	%		2,681		33,978	Oct 2023	Oct 2023
Beaver Valley Mall⁽⁵⁾		42,315		9.36	%		3,972		44,689	Apr 2032	Apr 2032


Total Fixed Rate Mortgage Loans		1,868,426		5.27	%		118,422		1,713,465


Variable Rate Mortgage Loans
Pavilion East Associates		205		3.00	%		—		—	Aug 2017	Aug 2017


Total Variable Rate Mortgage Loans		205		3.00	%		—		—


Total Mortgage Loans	$	1,868,631		5.27	%	$	118,422	$	1,713,465


CONSOLIDATED MORTGAGE LOANS	$	1,668,528		5.25	%	$	104,979	$	1,540,159
UNCONSOLIDATED MORTGAGE LOANS		196,629		5.42	%		13,191		170,023
2013 REVOLVING FACILITY - FIXED RATE⁽⁶⁾		35,000		5.78	%		2,021		35,000	Apr 2016	Apr 2018


Total	$	1,900,157		5.28	%	$	120,191	$	1,745,182


AMORTIZATION OF DEFERRED FINANCING FEES		—		0.24	%		—		—


EFFECTIVE INTEREST RATE	$	1,900,157		5.52	%	$	120,191	$	1,745,182

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

⁽⁴⁾	The mortgage loan for this property is classified in liabilities related to assets held for sale on the balance sheet.

⁽⁵⁾	This mortgage loan has passed its Anticipated Repayment Date. The final maturity date is April 2032.

⁽⁶⁾	As of June 30, 2013, for presentation purposes, we have designated interest rate swap agreements to effectively fix $35,000 of the underlying LIBOR associated with the 2013 Revolving Facility until September 10, 2013 at a current interest rate of 3.725%, excluding the spread on the related debt.

PREIT/Page 25

Pennsylvania Real Estate Investment Trust

Selected Debt Ratios⁽¹⁾


	June 30, 2013

Consolidated Liabilities to Gross Asset Value		49.83	%
Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 60%

Secured Indebtedness to Gross Asset Value		47.07	%
Secured indebtedness to Gross Asset Value may not exceed 60%

Adjusted EBITDA to Fixed Charges		1.69
Adjusted EBITDA may not be less than 1.45 to 1.00

Unencumbered Adjusted NOI to Unsecured Interest Expense		5.31
Unencumbered Adjusted NOI to Unsecured Interest Expense may not be less than 1.75 to 1.00

Unencumbered Debt Yield		172.71	%
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.

PREIT/Page 26

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 June 30, 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.

Same Store NOI

Same store NOI is calculated using retail properties owned for the full periods presented and exclude properties acquired or disposed of or reclassified as held for sale during the periods presented.

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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