Exhibit 99.1

		Pennsylvania Real Estate Investment Trust 200 South Broad Street Philadelphia, PA 19102 www.preit.com
		Phone:   215-875-0700
		Fax:       215-546-7311
		Toll Free: 866-875-0700
CONTACT: AT THE COMPANY		AT KCSA PUBLIC RELATIONS WORLDWIDE
Robert McCadden		Lewis Goldberg
EVP and CFO		(Media Relations)
(215) 875-0735		(212) 896-1216
Nurit Yaron
VP, Investor Relations
(215) 875-0735

FOR IMMEDIATE RELEASE

March 2, 2006

Pennsylvania Real Estate Investment Trust
Reports Fourth Quarter and 2005 Annual Financial Results

Philadelphia, PA, March 2, 2006 – Pennsylvania Real Estate Investment Trust (NYSE: PEI) today announced its financial results for the fourth quarter and year ended December 31, 2005.

Financial Results

• Net income available to common shareholders for the fourth quarter of 2005 was $16.0 million, compared to $15.8 million in the fourth quarter of 2004, an increase of 1.3%.  On a per diluted share basis, net income was $0.43, which was unchanged from the fourth quarter of 2004.  Net income available to common shareholders for the year ended December 31, 2005 was $44.0 million, compared to $40.2 million in 2004, an increase of 9.5%.  On a per diluted share basis, net income was $1.17 in 2005, compared to $1.10 in 2004, an increase of 6.4%.

• Funds From Operations (“FFO”) for the fourth quarter of 2005 was $46.0 million, compared to $45.3 million in the fourth quarter of 2004, an increase of 1.5%.  FFO per diluted share was $1.11 in the fourth quarter of 2005, which was unchanged from the fourth quarter of 2004.  For the year ended December 31, 2005, FFO was $152.8 million, compared to $147.7 million for 2004, an increase of 3.5%.  FFO per diluted share was $3.70 for 2005, compared to $3.65 for 2004, an increase of 1.4%.

• Net Operating Income (“NOI”) from consolidated properties and the Company’s proportionate share of unconsolidated partnership properties was $78.6 million in the fourth quarter of 2005, compared to $77.6 million in the fourth quarter of 2004, an increase of 1.3%.  For the year ended December 31, 2005, NOI was $287.4 million, compared to $283.2 million for 2004, an increase of 1.5%.

PREIT Reports Fourth Quarter and 2005 Annual Financial Results

March 2, 2006

Page 2

A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP measure is located at the end of this press release.

Ronald Rubin, Chairman and Chief Executive Officer of the Company, said, “Our 2005 results reflect the redevelopment activities taking place at a significant proportion of our properties.  We are very excited that the first two of these properties, Patrick Henry Mall and Capital City Mall, are emerging from redevelopment and are celebrating grand reopenings in the next few weeks.  Our work to take advantage of value creation opportunities at these two properties is beginning to bear fruit, and we look forward to similar results at our other properties currently undergoing redevelopment.”

Retail Operating Metrics

The following table sets forth information regarding occupancy in the Company’s retail portfolio as of December 31, 2005:

	Occupancy as of
	December 31, 2005			December 31, 2004
Retail Portfolio weighted average:
Total with Anchors		92.2	%		92.2	%
In-line only		88.4	%		88.6	%
Enclosed Malls weighted average:
Total with Anchors		91.3	%		91.5	%
In-line only		87.0	%		87.3	%
In-line non-redevelopment		88.6	%		87.4	%
In-line redevelopment (10 properties)		82.8	%		87.3	%
Power centers:
In-line		96.7	%		95.0	%

The Company’s results for the fourth quarter and year ended December 31, 2005 were affected, to a significant degree, by redevelopment initiatives that are in various stages at 10 of the Company’s 39 mall properties.

Sales per square foot for the mall properties in the Company’s portfolio as of December 31, 2005 were $329 for the year ended December 31, 2005, compared to $324 for the mall properties in the Company’s portfolio as of December 31, 2004 for the year ended December 31, 2004.

Same store NOI for the Company’s retail portfolio for the fourth quarter of 2005 decreased by approximately $3.7 million, or 4.9%, compared to the fourth quarter of 2004.  Same store NOI for the 10 redevelopment properties, including the properties in the early stages of the process, decreased by approximately $4.3 million, or 20.3%, compared to the fourth quarter of 2004.  Same store NOI from the balance of the retail portfolio increased by $0.6 million, or 1.1%, in the fourth quarter of 2005 over the comparable period in the prior year.

For 2005, same store NOI for the retail portfolio decreased by approximately $7.3 million, or 2.7%, compared to 2004.  Same store NOI for the 10 redevelopment properties decreased by approximately $3.4 million, or 4.5%, in 2005 compared to 2004.  Same store NOI for the balance

PREIT Reports Fourth Quarter and 2005 Annual Financial Results

March 2, 2006

Page 3

of the retail portfolio decreased by $3.9 million, or 2.0%, in 2005 compared to 2004.

Same store results represent property operating results for retail properties that the Company owned for the full periods presented.

Leasing and Redevelopment Activity

Joseph Coradino, President of PREIT Services, LLC and PREIT-RUBIN, Inc., said, “We are pleased with the leasing momentum that was generated during 2005, particularly at our properties undergoing redevelopment.  From the end of the third quarter of 2005 through today, we have signed key leases with impact retailers such as Best Buy, Borders and Old Navy at Lycoming Mall, Dick’s Sporting Goods at New River Valley Mall, and Marshall’s at The Mall at Prince Georges.  These merchants further demonstrate our success in introducing category dominant retailers into middle market mall environments.”

The following table briefly summarizes the Company’s redevelopment and remerchandising initiatives at certain of its mall properties:

Property	Description	Initial Occupancy Date	Estimated Project Cost
Capital City Mall (Camp Hill, PA)	Relocation of food court and two new restaurants into former theater location; creation of a lifestyle addition in place of former food court; tenants include Hollister, Express (dual gender) and Victoria’s Secret.	4th Quarter 2005	$11.6 million
Patrick Henry Mall (Newport News, VA)	Consolidation of two Dillard’s stores into one larger store and conversion of former Dillard’s store into a lifestyle addition; tenants include Borders, Dick’s Sporting Goods, Red Robin and Bailey’s restaurants, Victoria’s Secret and Bath & Body Works.	4th Quarter 2005	$26.9 million
New River Valley Mall (Christiansburg, VA)	Dick’s Sporting Goods is being added as an in-line tenant; addition of Regal Cinema stadium-style theater on an out parcel along with a Red Robin restaurant; development of a ground-up power center adjacent to the mall.	1st Quarter 2006	$49.8 million

PREIT Reports Fourth Quarter and 2005 Annual Financial Results

March 2, 2006

Page 4

Property	Description	Initial Occupancy Date	Estimated Project Cost
Lycoming Mall (Pennsdale, PA)	Remerchandising of existing space with in-line Borders, Dick’s Sporting Goods and Old Navy. Best Buy will be added on an out parcel.	3rd Quarter 2006	$11.8 million
Valley View Mall (LaCrosse, WI)	Remerchandising of existing space with an in-line Barnes & Noble.	3rd Quarter 2006	$3.6 million
Francis Scott Key Mall (Frederick, MD)	Remerchandising of existing space with an in-line Barnes & Noble.	3rd Quarter 2006	$3.5 million
South Mall (Allentown, PA)	Addition of a Ross Dress for Less and a freestanding Starbucks.	3rd Quarter 2006	$6.9 million
Cherry Hill Mall (Cherry Hill, NJ)	Phase I includes creation of Bistro Row and remerchandising of existing retail space.	1st Quarter 2007	$40.0 million
Plymouth Meeting Mall (Plymouth Meeting, PA)	Phase I of redevelopment includes lifestyle addition anchored by Whole Foods and up to six upscale themed restaurants on out parcels.	4th Quarter 2007	$53.4 million
Echelon Mall (Voorhees, NJ)	Will rename the property Voorhees Town Center. Under the current plans, the property will incorporate a portion of the existing mall, including Boscov’s and Strawbridge’s (Macy’s) department stores, as well as approximately 200,000 square feet of new lifestyle retail space, a food market and condominiums and rental apartment units to be developed by a residential developer.	To be determined	To be determined

2005 Recap: Acquisitions

• In December 2005, the Company purchased the 1.2 million square foot Woodland Mall in Grand Rapids, Michigan for approximately $177.4 million.

• In November 2005, the Company and Kravco Simon Investments, L.P. purchased the 0.6 million square foot Springfield Mall in Springfield, Pennsylvania for $103.5 million.  The Company and Kravco Simon each have a 50% ownership interest in the property.

PREIT Reports Fourth Quarter and 2005 Annual Financial Results

March 2, 2006

Page 5

• In March 2005, the Company purchased the 0.5 million square foot Gadsden Mall in Gadsden, Alabama for approximately $58.8 million.

• In February 2005, the Company purchased the 0.9 million square foot Cumberland Mall in Vineland, New Jersey for approximately $59.5 million.

2005 Recap: Dispositions

• In December 2005, the Company sold Festival at Exton in Exton, Pennsylvania, for $20.2 million.

• In August 2005, the Company sold its four industrial properties for approximately $4.3 million.

• In July 2005, an unconsolidated partnership in which the Company has a 50% interest sold the property on which the Christiana Power Center Phase II project would have been built to the Delaware Department of Transportation for $17.0 million.  The Company’s share of the proceeds was $9.5 million, representing a reimbursement for the approximately $5.0 million of costs and expenses incurred previously in connection with the project and a gain on the sale of $4.5 million that was recognized in the third and fourth quarters of 2005.

• In July 2005, the Company sold its 40% interest in Laurel Mall in Hazleton, Pennsylvania and received proceeds of $3.9 million

New Developments

• In February 2006, the Company acquired approximately 540 acres of land known as “Springhills” in Gainesville, Florida for approximately $21.5 million.  The Company expects to develop a mixed use project on this land.

• In January 2006, the Company sold 11 acres of a 25 acre site to Home Depot U.S.A., Inc.  The Company plans to build a 240,000 square foot Home Depot-anchored power center on the property, which is across the street from the Company’s Magnolia Mall in Florence, South Carolina.

• In August 2005, the Company acquired approximately 15 acres in Christiansburg, Virginia adjacent to the Company’s New River Valley Mall for $4.1 million, where it plans to develop a power center.

• In transactions that closed between June 2005 and January 2006, the Company acquired 187 acres of land in New Garden Township, Pennsylvania for approximately $30.1 million.  The Company’s concept for this property includes two retail formats and a mixed use component.

PREIT Reports Fourth Quarter and 2005 Annual Financial Results

March 2, 2006

Page 6

• In transactions that closed between May and August 2005, the Company acquired 45 acres in Lacey Township, New Jersey for approximately $11.6 million in cash.  The Company has been authorized by the Township to construct a retail center of up to 300,000 square feet, including a 133,000 square foot Home Depot.

2005 Recap: Financing Activity

• In December 2005, the Company obtained a $160 million first mortgage loan, with interest at 5.65% maturing in December 2015, secured by Willow Grove Park in Willow Grove, Pennsylvania.  The Company used the proceeds to repay the previous first mortgage, to repay part of its unsecured revolving credit facility and for general corporate purposes.

• In December 2005, the Company entered into a Unit Purchase Agreement with Crown American Properties, L.P., an entity controlled by Mark Pasquerilla, a trustee of the Company.  Under the agreement, the Company purchased 339,300 units of limited partnership interest in its operating partnership from CAP at $36.375 per unit, a 3% discount from the closing price of its common shares on December 19, 2005 of $37.50. The aggregate amount paid for the units was $12.3 million.

• In October 2005, the Company announced that its Board of Trustees authorized a program to repurchase up to $100 million of its common shares.  The program will be in effect until the end of 2007, subject to the Company’s authority to terminate the program earlier.  From the inception of the program through December 31, 2005, the Company had repurchased 218,700 shares at an average price of $38.18 per share for an aggregate purchase price of $8.4 million.

• In September 2005, the Company placed a $200 million first mortgage loan, with interest at 5.42% and maturing in October 2012, on Cherry Hill Mall in Cherry Hill, New Jersey.  The Company used the proceeds to repay the previous first mortgage and to repay part of its revolving credit facility.

• In July 2005, the Company entered into a new $66 million 10-year mortgage loan with interest at 5.33% and secured by Magnolia Mall in Florence, South Carolina.  The Company used the proceeds to repay the previous mortgage and to repay a portion of the revolving credit facility.

• In June 2005, the Company entered into $370 million in aggregate notional amount of forward starting interest rate swap agreements to hedge the expected interest payments associated with a portion of its anticipated future issuances of long term debt.  The Company locked in a blended 10-year swap rate on a notional amount of $120 million starting in 2007 of 4.6858%, and a blended 10-year swap rate on a notional amount of $250 million starting in 2008 of 4.8047%.

PREIT Reports Fourth Quarter and 2005 Annual Financial Results

March 2, 2006

Page 7

First Quarter and Calendar Year 2006 Forecast

For 2006, the Company estimates that net income per diluted share will be between $0.43 and $0.55 and that FFO per diluted share will be between $3.53 and $3.65.  For the first quarter of 2006, the Company estimates that net income (loss) per diluted share will be between $(0.06) and $(0.02) and that FFO per diluted share will be between $0.72 and $0.76.  This guidance includes the effect of $4.2 million in separation payments associated with the retirement of the Company’s Vice Chairman, Jonathan Weller, which will be included in the Company’s financial results for the quarter ending March 31, 2006.  For 2006, the Company expects the incremental costs associated with Mr. Weller’s separation from the Company to reduce its diluted earnings per share and its FFO per diluted share by $0.07.

Estimated Amounts Per Share	First Quarter 2006	Calendar Year 2006
Diluted earnings (loss) per share	$(0.06) – (0.02)	$0.43 – 0.55
Depreciation and amortization (includes Company’s proportional share of partnerships), net of minority interest	0.78	3.10
FFO per diluted share	$0.72 – 0.76	$3.53 – 3.65

Conference Call Information

The Company has scheduled a conference call for 3:00 p.m. Eastern Time today to review its fourth quarter and 2005 annual results, market trends and future outlook. To listen to the call, please dial (877) 407-0778 (domestic) or (201) 689-8565 (international) at least five minutes before the scheduled start time. Investors can also access the call in a “listen only” mode via the Internet on the Company’s website at www.preit.com or www.vcall.com.  Please allow extra time prior to the call to visit the site and download the necessary software to listen to the Internet broadcast.  Financial and statistical information expected to be discussed on the call will also be available on the Company’s website www.preit.com under the Investor Relations tab.

For interested individuals unable to join the conference call, a replay of the call will be available until March 16, 2006 at (877) 660-6853 (domestic) or (201) 612-7415 (international), (Passcode: 286; Conference ID# 192604).    The online archive of the webcast will be available for 14 days following the call.

About Pennsylvania Real Estate Investment Trust

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 and power centers (approximately 34.5 million square feet) located in the eastern United States. PREIT’s portfolio currently consists of 52 properties in 13 states. PREIT’s portfolio includes 39 shopping malls, 12 strip and power centers and one office property. PREIT is headquartered in Philadelphia, Pennsylvania. PREIT’s website can be found at www.preit.com.

PREIT Reports Fourth Quarter and 2005 Annual Financial Results

March 2, 2006

Page 8

Definitions

The National Association of Real Estate Investment Trusts (“NAREIT”) defines Funds From Operations (“FFO”), which is a non-GAAP measure, as income before gains (losses) on sales of operating properties and extraordinary items (computed in accordance with GAAP); plus real estate depreciation; plus or minus adjustments for unconsolidated partnerships to reflect funds from operations on the same basis. FFO is a commonly used measure of operating performance and profitability in the REIT industry, and we use FFO as a supplemental non-GAAP measure to compare our Company’s performance to that of our industry peers.  In addition, we use FFO as a performance measure for determining bonus amounts earned under certain of our performance-based executive compensation programs. The Company computes FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than the Company.  FFO does not include gains or losses on sale of operating real estate assets, which are included in the determination of net income in accordance with GAAP.  Accordingly, FFO is not a comprehensive measure of our operating cash flows.  In addition, since FFO does not include depreciation on real estate assets, FFO may not be a useful performance measure when comparing our operating performance to that of other non-real estate commercial enterprises. We compensate for these limitations by using FFO in conjunction with other GAAP financial performance measures, such as net income and net cash provided by operating activities, and other non-GAAP financial performance measures, such as net operating income. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance, or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is it indicative of funds available for the Company’s cash needs, including its ability to make cash distributions. 

The Company believes that net income is the most directly comparable GAAP measurement to FFO. The Company believes that FFO is helpful to management and investors as a measure of operating performance because it excludes various items included in net income that do not relate to or are not indicative of operating performance, such as various non-recurring items that are considered extraordinary under GAAP, gains on sales of operating real estate and depreciation and amortization of real estate.

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

PREIT Reports Fourth Quarter and 2005 Annual Financial Results

March 2, 2006

Page 9

The Company believes that net operating income is helpful to management and investors as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. Net operating income excludes general and administrative expenses, management company revenues, interest income, interest expense, depreciation and amortization and gains on sales of interests in real estate.

This press release contains certain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts.   These forward-looking statements reflect PREIT’s current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause future events, achievements or results to differ materially from those expressed by the forward-looking statements.  Additionally, there can be no assurance that PREIT’s actual results will not differ significantly from the forecast and estimates set forth above, or that PREIT’s returns on its acquisitions will be consistent with the estimates outlined in the related press releases.  PREIT’s business is subject to uncertainties regarding the revenues, operating expenses, leasing activities, occupancy rates, and other competitive factors relating to PREIT’s portfolio and changes in local market conditions as well as general economic, financial and political conditions, including the possibility of outbreak or escalation of war or terrorist attacks, any of which may cause future events, achievements or results to differ materially from those expressed by the forward-looking statements. In particular, the successful redevelopment of any property is subject to a number of risks, including, among others, that PREIT’s redevelopment plans might change, its redevelopment activities might be delayed, anticipated project costs may increase, and PREIT might not enter into one or more of the leases referred to under “Redevelopment Activity.”  Unanticipated expenses or delays would adversely affect PREIT’s investment returns on a redevelopment project.   PREIT does not intend to and disclaims any duty or obligation to update or revise any forward-looking statements or industry information set forth in this press release to reflect new information, future events or otherwise.  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, 2004.

[Financial Tables Follow]

# # #

** A supplemental quarterly financial package **

will be available on the Company’s web site at www.preit.com.

PREIT Announces Fourth Quarter 2005 Results

March 2, 2006

Page 10

Pennsylvania Real Estate Investment Trust

Selected Financial Data

FUNDS FROM OPERATIONS

	Three Months Ended						Twelve Months Ended
(In thousands, except share and per share amounts)	December 31, 2005			December 31, 2004			December 31, 2005			December 31, 2004
Net income	$	19,439		$	19,164		$	57,629		$	53,788
Adjustments:
Minority interest in Operating Partnership		2,051			2,467			6,205			5,665
Minority interest in Operating Partnership-discontinued operations		338			(109	)		1,020			653
Dividends on preferred shares		(3,403	)		(3,403	)		(13,613	)		(13,613	)
Gains on sales of interests in real estate		74			45			(5,586	)		(1,484	)
Gain/adjustment to gain on sale of discontinued operations		(2,422	)		—			(6,158	)		550
Depreciation and amortization:
Wholly owned & consolidated partnerships (a)		28,469			24,292			107,875			95,360
Unconsolidated partnerships (a)		1,295			2,559			4,582			5,781
Discontinued operations		64			126			433			502
FUNDS FROM OPERATIONS(b)	$	45,905		$	45,141		$	152,387		$	147,202
Minority interest in properties		124			131			450			474
FUNDS FROM OPERATIONS FOR DILUTED CALCULATION	$	46,029		$	45,272		$	152,837		$	147,676
FUNDS FROM OPERATIONS PER SHARE AND OP UNITS-BASIC	$	1.13		$	1.12		$	3.75		$	3.70
FUNDS FROM OPERATIONS PER SHARE AND OP UNITS-DILUTED	$	1.11		$	1.11		$	3.70		$	3.65
Weighted average number of shares outstanding		36,210			35,819			36,090			35,609
Weighted average effect of full conversion of OP Units		4,461			4,426			4,580			4,183
Total weighted average shares outstanding, including OP Units		40,671			40,245			40,670			39,792
Effect of common share equivalents		615			718			673			659
Total weighted average shares outstanding, including OP Units-diluted		41,286			40,963			41,343			40,451

a)	Excludes depreciation of non-real estate assets, amortization of deferred financing costs and discontinued operations.
b)	Includes the non-cash effect of straight-line rents of $1,168 and $1,375 for the 4th quarter 2005 and 2004, respectively, and $4,374 and $5,212 for the twelve months ended December 31, 2005 and 2004, respectively.

STATEMENTS OF INCOME

	Three Months Ended						Twelve Months Ended
(In thousands, except per share amounts)	December 31, 2005			December 31, 2004			December 31, 2005			December 31, 2004
REVENUE:
Real estate revenues:
Base rent	$	73,144		$	69,510		$	271,982		$	253,410
Percentage rent		4,485			4,697			10,411			9,827
Expense reimbursements		31,384			27,591			123,838			113,570
Lease termination revenue		587			1,253			1,852			3,931
Other real estate revenues		7,428			6,807			16,572			15,025
Total real estate revenues		117,028			109,858			424,655			395,763
Management company revenue		1,913			2,332			3,956			5,278
Interest and other income		310			161			1,048			1,026
Total revenues		119,251			112,351			429,659			402,067
EXPENSES:
Property operating expenses:
CAM and real estate taxes		(29,843	)		(25,476	)		(113,681	)		(99,507	)
Utilities		(5,624	)		(4,427	)		(22,419	)		(19,873	)
Other property expenses		(9,502	)		(8,615	)		(26,037	)		(24,842	)
Total property operating expenses		(44,969	)		(38,518	)		(162,137	)		(144,222	)
Depreciation and amortization		(29,048	)		(24,709	)		(110,002	)		(96,809	)
Other expenses:
General and administrative expenses		(8,890	)		(10,241	)		(36,723	)		(43,033	)
Taxes		(78	)		—			(597	)		—
Total other expenses		(8,968	)		(10,241	)		(37,320	)		(43,033	)
Interest Expense		(20,917	)		(18,456	)		(81,907	)		(72,314	)
Total expenses		(103,902	)		(91,924	)		(391,366	)		(356,378	)
Income before equity in income of partnerships, gains on sales of interests in real estate, minority interest and discontinued operations		15,349			20,427			38,293			45,689
Equity in income of partnerships		2,049			697			7,474			5,606
Gains on sales of interests in real estate		1,390			(45	)		10,111			1,484
Income before minority interest and discontinued operations		18,788			21,079			55,878			52,779
Minority interest in properties		(51	)		(66	)		(179	)		(611	)
Minority interest in Operating Partnership		(2,051	)		(2,467	)		(6,205	)		(5,665	)
Income from continuing operations		16,686			18,546			49,494			46,503
Discontinued operations:
Operating results from discontinued operations		669			508			2,997			8,506
Gain/(adjustment to gain) on sale of discontinued operations		2,422			—			6,158			(550	)
Minority interest in properties		—			1			—			(18	)
Minority interest in Operating Partnership		(338	)		109			(1,020	)		(653	)
Income from discontinued operations		2,753			618			8,135			7,285
Net income		19,439			19,164			57,629			53,788
Dividends on preferred shares		(3,403	)		(3,403	)		(13,613	)		(13,613	)
Net income available to common shareholders	$	16,036		$	15,761		$	44,016		$	40,175
BASIC EARNINGS PER SHARE
From continuing operations	$	0.36		$	0.42		$	0.97		$	0.90
From discontinued operations		0.08			0.02			0.22			0.21
TOTAL BASIC EARNINGS PER SHARE	$	0.44		$	0.44		$	1.19		$	1.11
DILUTED EARNINGS PER SHARE
From continuing operations	$	0.36		$	0.41		$	0.95		$	0.90
From discontinued operations		0.07			0.02			0.22			0.20
TOTAL DILUTED EARNINGS PER SHARE	$	0.43		$	0.43		$	1.17		$	1.10
Weighted average number of shares outstanding (for diluted EPS)		36,825			36,537			36,762			36,269

PREIT Announces Fourth Quarter 2005 Results

March 2, 2006

Page 11

Pennsylvania Real Estate Investment Trust

Selected Financial Data

NET OPERATING INCOME

	Three Months Ended						Twelve Months Ended
(In thousands)	December 31, 2005			December 31, 2004			December 31, 2005			December 31, 2004
Net income	$	19,439		$	19,164		$	57,629		$	53,788
Adjustments:
Depreciation and amortization
Wholly owned and consolidated partnerships		29,048			24,709			110,002			96,809
Unconsolidated partnerships		1,295			2,559			4,582			5,781
Discontinued operations		64			126			433			502
Interest expense
Wholly owned and consolidated partnerships		20,917			18,456			81,907			72,314
Unconsolidated partnerships		2,131			2,084			8,167			8,318
Discontinued operations		310			315			1,241			2,921
Minority interest in Operating Partnership
Continuing operations		2,051			2,467			6,205			5,665
Discontinued operations		338			(109	)		1,020			653
Minority interest in properties
Continuing operations		51			66			179			611
Discontinued operations		—			(1	)		—			18
Gains on sales of interests in real estate		(1,390	)		45			(10,111	)		(1,484	)
(Gain)/adjustment to gain on sale of discontinued operations		(2,422	)		—			(6,158	)		550
General and administrative expenses		8,968			10,241			37,320			43,033
Management company revenue		(1,913	)		(2,332	)		(3,956	)		(5,278	)
Interest and other income		(310	)		(161	)		(1,048	)		(1,026	)
Property net operating income	$	78,577		$	77,629		$	287,412		$	283,175
Same store retail properties	$	72,463		$	76,158		$	261,072		$	268,358
Non-same store properties		6,114			1,471			26,340			14,817
Property net operating income	$	78,577		$	77,629		$	287,412		$	283,175

EQUITY IN INCOME OF PARTNERSHIPS

	Three Months Ended						Twelve Months Ended
(In thousands)	December 31, 2005			December 31, 2004			December 31, 2005			December 31, 2004
Gross revenues from real estate	$	16,067		$	15,387		$	58,764		$	57,986
Expenses:
Property operating expenses		(5,110	)		(4,565	)		(17,937	)		(17,947	)
Mortgage interest expense		(4,255	)		(4,240	)		(16,485	)		(16,923	)
Depreciation and amortization		(2,460	)		(4,628	)		(8,756	)		(11,001	)
Total expenses		(11,825	)		(13,433	)		(43,178	)		(45,871	)
Net income from real estate		4,242			1,954			15,586			12,115
Partners’ share		(2,121	)		(991	)		(7,835	)		(6,131	)
Company’s share		2,121			963			7,751			5,984
Amortization of excess investment		(72	)		(266	)		(277	)		(378	)
EQUITY IN INCOME OF PARTNERSHIPS	$	2,049		$	697		$	7,474		$	5,606

PREIT Announces Fourth Quarter 2005 Results

March 2, 2006

Page 12

Pennsylvania Real Estate Investment Trust

Selected Financial Data

CONSOLIDATED BALANCE SHEET

(In thousands, except share and per share amounts)	December 31, 2005			December 31, 2004
ASSETS:
INVESTMENTS IN REAL ESTATE, at cost:
Retail properties	$	2,807,575		$	2,510,256
Land held for development		5,616			9,863
Industrial properties		—			2,504
Construction in progress		55,368			10,953
Total investments in real estate		2,868,559			2,533,576
Accumulated depreciation		(220,788	)		(150,885	)
NET INVESTMENTS IN REAL ESTATE		2,647,771			2,382,691
INVESTMENTS IN PARTNERSHIPS, at equity		41,536			27,244
		2,689,307			2,409,935
OTHER ASSETS:
Assets held for sale		17,720			14,946
Cash and cash equivalents		21,642			40,340
Rents and other receivables (net of allowance for doubtful accounts of $10,671 and $9,394, at December 31, 2005 and December 31, 2004, respectively)		46,492			31,977
Intangible assets (net of accumulated amortization of $72,308 and $38,333 at December 31, 2005 and December 31, 2004, respectively)		173,594			171,850
Deferred costs and other assets, net		69,792			62,355
Total assets	$	3,018,547		$	2,731,403
LIABILITIES:
Mortgage notes payable	$	1,332,066		$	1,145,079
Debt premium on mortgage notes payable		40,066			56,135
Bank loan payable		342,500			271,000
Corporate notes payable		94,400			—
Liabilities related to assets held for sale		18,233			18,556
Tenants’ deposits and deferred rents		13,298			13,465
Investments in partnerships, deficit balances		13,353			13,758
Accrued expenses and other liabilities		69,435			76,975
Total liabilities		1,923,351			1,594,968
MINORITY INTEREST:
Minority interest in Operating Partnership		115,304			128,384
Minority interest in properties		3,016			3,585
Total minority interest		118,320			131,969
SHAREHOLDERS’ EQUITY:
Shares of beneficial interest, $1.00 par value per share; 100,000,000 shares authorized; issued and outstanding 36,521,000 shares at December 31, 2005 and 36,272,000 shares at December 31, 2004		36,521			36,272
Non-convertible senior preferred shares, 11% cumulative, $.01 par value per share; 2,475,000 shares authorized, issued and outstanding at December 31, 2005 and December 31, 2004		25			25
Capital contributed in excess of par		912,798			899,506
Deferred compensation		(13,359	)		(7,737	)
Accumulated other comprehensive income (loss)		4,377			(1,821	)
Retained earnings		36,514			78,221
Total shareholders’ equity		976,876			1,004,466
Total liabilities, minority interest and shareholders’ equity	$	3,018,547		$	2,731,403