Quarterly Supplemental Disclosure

EX-99.1 2 dex991.htm QUARTERLY SUPPLEMENTAL DISCLOSURE Quarterly Supplemental Disclosure

Exhibit 99.1

Pennsylvania Real Estate Investment Trust

QUARTERLY SUPPLEMENTAL DISCLOSURE

(December 31, 2004)

www.preit.com

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

Table of Contents


Company Information		1

Timeline/Recent Developments		2

Stock Information		3

Market Capitalization and Capital Resources		4

Balance Sheet—Wholly Owned and Partnerships Detail		5

Balance Sheet—Line of Business		6

Income Statement—Wholly Owned and Partnerships Detail -Quarterly Comparison		7

Income Statement—Wholly Owned and Partnerships Detail-Yearly Comparison		8

Income Statement—Line of Business- Quarterly Comparison		9

Income Statement—Line of Business- Yearly Comparison		10

Income Statement—Retail (Property Status) -Quarterly Comparison		11

Income Statement—Retail (Property Status)- Yearly Comparison		12

Income Statement—Retail (Property Subtype) -Quarterly Comparison		13

Income Statement—Retail (Property Subtype)- Yearly Comparison		14

FFO and FAD		15

Key Ratios		16

Property Debt Schedule—Wholly Owned		17

Property Debt Schedule—Partnerships		18

Debt Analysis		19

Debt Ratios		20

Portfolio Summary—Retail		21

Property Acquisitions/Dispositions- Quarterly Summary		22

Property Acquisitions/Dispositions- Yearly Summary		23

Property Development/Redevelopment Summary		24

Top Twenty Tenants Schedule		25

Lease Expiration Schedule - Anchor Tenants		26

Lease Expiration Schedule - Non-Anchor Tenants		27

New Lease/Renewal Summary and Analysis		28

Capital Expenditures-Quarterly		29

Capital Expenditures-Yearly		30

Enclosed Mall-Summary and Occupancy		31

Enclosed Mall-Rent Summary		32

Power Center- Summary and Occupancy		33

Strip Center- Summary and Occupancy		34

Retail Overall- Summary and Occupancy		35

Summary of Portfolio Services		36

Flash Report-Quarterly		37

Flash Report-Yearly		38

RECONCILIATION TO GAAP:

Balance Sheet-Reconciliation to GAAP		39

Income Statement-Reconciliation to GAAP -Quarterly		40

Income Statement-Reconciliation to GAAP -Yearly		41

Flash Report-Reconciliation to GAAP- Quarterly		42

Flash Report-Reconciliation to GAAP- Yearly		43

Definition page		44

THIS QUARTERLY SUPPLEMENTAL DISCLOSURE CONTAINS CERTAIN “FORWARD-LOOKING STATEMENTS” THAT RELATE TO EXPECTATIONS, PROJECTIONS, ANTICIPATED EVENTS, 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 AND ASSUMPTIONS THAT MAY CAUSE FUTURE EVENTS, ACHIEVEMENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED BY THE FORWARD-LOOKING STATEMENTS. 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, WHICH MAY CAUSE FUTURE EVENTS, ACHIEVEMENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED BY THE FORWARD-LOOKING STATEMENTS. PREIT DISCLAIMS ANY DUTY TO UPDATE ANY FORWARD-LOOKING STATEMENTS SET FORTH IN THIS QUARTERLY SUPPLEMENTAL DISCLOSURE TO REFLECT NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. INVESTORS ARE ALSO DIRECTED TO CONSIDER THE RISKS 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, 2003.

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

COMPANY INFORMATION

PENNSYLVANIA REIT

200 South Broad Street, Philadelphia, PA 19102

http://www.preit.com

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 33.0 million square feet) located in the eastern United States. PREIT’s portfolio consists of 54 properties in 12 states. PREIT’s portfolio includes 37 shopping malls, 13 strip and power centers and four industrial properties. PREIT is headquartered in Philadelphia, Pennsylvania.

Research Coverage


Company	Analyst	Phone Number
Green Street Advisors	Gregory R. Andrews	(949) 640-8780
JP Morgan	Michael W. Mueller	(212) 622-6689
	Anthony Paolone	(212) 622-6682
	Joshua Bederman	(212) 622-6530
Legg Mason Wood Walker	David M. Fick	(410) 539-0000
	Nathan Isbee	(410) 454-4143
Lehman Brothers	David Harris	(212) 526-1790
	Alexander D. Goldfarb	(212) 526-5232
UBS	Ian C. Weissman	(212) 713-8602
	Keith A. Mills	(212) 713-3098
	Frank Rybinski	(212) 713-2364

Quarterly Earnings Schedule

PREIT’s quarterly results will be announced in accordance with the following schedule:


Quarter	2005⁽¹⁾	2004
First Quarter	5/3/2005	5/5/2004
Second Quarter	8/4/2005	8/5/2004
Third Quarter	11/3/2005	11/8/2004
Fourth Quarter	2/28/2006	3/3/2005

⁽¹⁾	Tentative dates.

Quarterly conference calls are arranged by KCSA Worldwide. To participate, please contact Garth Russell at (212) 896-1250.

For additional information, please contact:

Robert McCadden or Nurit Yaron

200 South Broad Street

Philadelphia, PA 19102

Phone (215) 875-0700 Toll Free (866) 875-0700

(215) 546-7311 Fax yaronn@preit.com Email

PAGE 1

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

Time Line/Recent Developments

February 17, 2005 - Pennsylvania Real Estate Investment Trust announced that a partnership in which it holds a 40% interest has entered into a definitive agreement to sell Laurel Mall in Hazelton, Pennsylvania. The sale is expected to be completed in the second quarter of 2005.

February 17, 2005 - Pennsylvania Real Estate Investment Trust announced that it intends to release its financial results for the fourth quarter and twelve months ended December 31, 2004, on Thursday, March 3, 2005. It also announced that Management will hold a conference call on Thursday, March 3, 2005 at 3:00PM EDT to review the Company's fourth quarter and twelve month results, market trends and future outlook.

February 17, 2005 - Pennsylvania Real Estate Investment Trust announced that its Board of Trustees declared a quarterly cash dividend of $0.54 per common share. PREIT also announced that its Board of Trustees has declared a regular quarterly dividend of $1.375 per share on its 11.00% senior preferred shares.

February 4, 2005 - Pennsylvania Real Estate Investment Trust announced that it had completed the acquisition of Cumberland Mall in Vineland, New Jersey for approximately $59.5 million.

February 3, 2005 - Pennsylvania Real Estate Investment Trust announced that it had amended its credit facility effective January 31, 2005.

January 24, 2005 - Pennsylvania Real Estate Investment Trust reported the tax status of its dividend distribution for 2004.

December 2, 2004 - Pennsylvania Real Estate Investment Trust announced that it had completed the acquisition of Orlando Fashion Square in Orlando, Florida for approximately $123.5 million.

November 8, 2004 - Pennsylvania Real Estate Investment Trust today announced its results for the third quarter and nine months ended September 30, 2004. Net income available to common shareholders for the third quarter of 2004 was $0.30 per diluted share. FFO per common share and Operating Partnership unit (“share”) for the third quarter of 2004 was $0.86.

October 29, 2004 - Pennsylvania Real Estate Investment Trust announced that its Board of Trustees declared a quarterly cash dividend of $0.54 per common share. PREIT also announced that its Board of Trustees has declared a regular quarterly dividend of $1.375 per share on its 11.00% senior preferred shares.

October 29, 2004 - Pennsylvania Real Estate Investment Trust announced that it intends to release its financial results for the third quarter and nine months ended September 30, 2004 on Monday, November 8, 2004. It also announced that Management will hold a conference call on Monday, November 8, 2004 at 3:00PM ET to review the Company's third quarter and nine month results, market trends and future outlook.

October 19, 2004 - Pennsylvania Real Estate Investment Trust announced that it has signed a binding agreement to acquire Orlando Fashion Square in Orlando, Florida, for approximately $123.5 million.

October 11, 2004 - Pennsylvania Real Estate Investment Trust announced that it has reached an agreement with the owners of Cumberland Mall Associates to acquire Cumberland Mall in Vineland, New Jersey for approximately $59.5 million.

NOTE: Copies of the press releases are available on the Company's website at www.preit.com.

PAGE 2

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

Stock Information

PREIT’s common stock trades on the New York Stock Exchange (symbol: PEI).

PREIT’s preferred stock trades on the New York Stock Exchange (symbol: PEIPRA).


	CY:12/31/04		Q4:12/31/04		Q3:9/30/04		Q2:6/30/04		Q1:3/31/04		CY:12/31/03		Q4:12/31/03		CY 12/31/02
High Price		43.70		43.70		38.85		37.87		37.85		36.30		36.30		27.20
Low Price		30.25		38.66		33.40		30.25		33.30		24.70		32.70		20.55
Close		42.80		42.80		38.66		34.25		37.66		36.30		36.30		26.00
Average Daily Trading Volume		161,659		123,000		122,095		181,397		220,144		109,892		283,565		41,495
Common Shares Outstanding at end of period		36,272,162		36,272,162		36,094,567		35,938,306		35,778,863		35,544,265		35,544,265		16,697,119
O.P. Units		4,413,559		4,413,559		4,429,030		4,444,030		3,834,714		3,691,516		3,691,516		1,763,318

Fully Diluted Shares Outstanding		40,685,721		40,685,721		40,523,597		40,382,336		39,613,577		39,235,781		39,235,781		18,460,437
Weighted Avg. number of common shares outstanding		35,609,350		35,818,787		35,695,353		35,516,772		35,403,257		20,389,577		28,786,801		16,162,327
Weighted Avg. effect of full conversion of O.P. units		4,183,059		4,425,874		4,435,878		4,028,892		3,836,144		2,303,449		2,957,595		1,804,779

Wtd Avg. Common Shares Outstanding and O.P. Units		39,792,409		40,244,661		40,131,231		39,545,664		39,239,401		22,693,026		31,744,396		17,967,106
Preferred Shares, Nominal Value	$	123,750,000	$	123,750,000	$	123,750,000	$	123,750,000	$	123,750,000	$	123,750,000	$	123,750,000
Market Value of Shares (based on closing price)	$	1,865,098,859	$	1,865,098,859	$	1,690,392,260	$	1,506,845,008	$	1,615,597,310	$	1,548,008,850	$	1,424,258,850	$	479,971,362

Distribution Information for Common Shares


	CY:12/31/04			Q4:12/31/04			Q3:9/30/04			Q2:6/30/04			Q1:3/31/04			CY:12/31/03			Q4:12/31/03			CY 12/31/02
Dividend per share	$	2.160		$	0.540		$	0.540		$	0.540		$	0.540		$	2.070		$	0.540		$	2.040
Annualized Dividend Yield ⁽¹⁾		5.0	%		5.0	%		5.6	%		6.3	%		5.7	%		5.7	%		6.0	%		7.8	%
Capital Gain Pre-May 6	$	0.026		$	—		$	0.026		$	—		$	—			0.096		$	—		$	0.082
Capital Gain Post-May 5	$	—		$	—		$	—		$	—		$	—			0.213		$	—		$	—
Section 1250 Gain	$	0.026		$	—		$	0.026		$	—		$	—			0.480		$	—		$	—
Return of Capital/Non-Taxable	$	0.517		$	0.182		$	0.182		$	0.153		$	—			0.085			0.022		$	0.134
Qualified 5 Year Gain (incl. in cap. Gain)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Ordinary Income	$	1.617		$	0.358		$	0.332		$	0.387		$	0.540		$	1.196		$	0.518		$	1.824

⁽¹⁾	Based on closing stock price for the period.

Shareholder Information


Ten Largest Institutional Shareholders: Common Shares Held ⁽¹⁾	12/31/2004
RREEF Real Estate Securities Advisers, L.P.	5,023,996
Vanguard Group, Inc.	1,536,972
Barclays Global Investors	1,450,053
ING Clarion Real Estate Securities	1,428,553
ABP Investment U.S.,Inc	994,800
J.P Morgan Investment Management Inc. (NY)	908,541
State Street Global Advisors	725,243
Neuberger Berman, LLC	686,590
Urdang Investment Management, Inc.	525,585
Martingale Asset Management, L.P.	466,073
*TOTAL of Ten Largest Institutional:*	13,746,406
*TOTAL of all Institutional holders:*	21,655,541
*Ten Largest as % of Total Institutional:*	63.5	%

⁽¹⁾	Based on 13F filings as of 12/31/04 or most recent filings.

LOGO


Breakdown of Share & Unit Ownership: Shares Held	12/31/2004	9/30/03	% of 12/31/04 total
Institutional ⁽¹⁾	21,655,541	7,354,860	53.2	%
Retail ⁽²⁾	14,796,395	16,369,287	36.4	%
Insiders ⁽³⁾	4,233,785	1,813,309	10.4	%

*TOTAL*	40,685,721	25,537,456	100.0	%

⁽¹⁾	Based on 13F filings as of 12/31/04 or most recent filings.

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

⁽³⁾	Insider holdings as of 1/4/04. (Shares and O.P. Units only. Excludes 474,335 exercisable options).

LOGO


Share Ownership by Insiders: Shares Held (including O.P. Units, Beneficial Ownership and Exercisable Options)	As of 4/1/04⁽¹⁾	% of Total ⁽²⁾		Interim Net Purchases of Shares ⁽³⁾	As of 12/31/03⁽⁴⁾	% of Total ⁽⁵⁾
Mark Pasquerilla	2,398,073	5.9	%	1,000	2,397,073	5.9	%
Ronald Rubin	859,469	2.1	%	20,621	838,848	2.1	%
George F. Rubin	434,925	1.1	%	14,390	420,535	1.0	%
Leonard I. Korman	363,475	0.9	%	50,690	312,785	0.8	%
Edward A. Glickman	225,856	0.6	%	12,626	213,230	0.5	%
Jonathan B. Weller	165,736	0.4	%	13,206	152,530	0.4	%
Joseph F. Coradino	125,043	0.3	%	13,386	111,657	0.3	%
Jeffrey A. Linn	72,450	0.2	%	3,094	69,356	0.2	%
Douglas S. Grayson	45,306	0.1	%	3,154	42,152	0.1	%
David J. Bryant	24,894	0.1	%	3,642	21,252	0.1	%
Bruce Goldman	16,499	0.0	%	5,746	10,753	0.0	%
Lee H. Javitch	15,375	0.0	%	3,250	12,125	0.0	%
Rosemarie B. Greco	9,375	0.0	%	2,250	7,125	0.0	%
Ira Lubert	5,500	0.0	%	2,250	3,250	0.0	%
Donald Mazziotti	1,985	0.0	%	N/A	N/A	N/A
John J. Roberts	1,000	0.0	%	N/A	N/A	N/A

*TOTAL ⁽⁶⁾*	4,708,120	11.7	%	149,305	4,560,889	11.4	%

⁽¹⁾	Source of Insider Ownership: Proxy dated April 29, 2004. Refer to footnotes in proxy for details on beneficial ownership.

⁽²⁾	Based on fully diluted shares outstanding as of September 30, 2004.

⁽³⁾	Includes purchases of shares, issuance of restricted stocks awards, issuances of O.P. units, and exercisable options.

⁽⁴⁾	Source of Insider Ownership: S-4 SEC filing dated October 1, 2003.

⁽⁵⁾	Based on fully diluted shares outstanding as of December 31, 2003.

⁽⁶⁾	In certain instances, two trustees beneficially own the same shares because they share voting or investment power over the shares. These shares have been counted only once in the total.

PAGE 3

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

MARKET CAPITALIZATION


	December 31, 2004			September 30, 2004			June 30, 2004			March 31, 2004			December 31, 2003			December 31, 2002
EQUITY CAPITALIZATION
Shares Outstanding		36,272,162			36,094,567			35,938,306			35,778,863			35,544,265			16,697,119
O.P. Units Outstanding		4,413,559			4,429,030			4,444,030			3,834,714			3,691,516			1,763,318

TOTAL Shares and O.P. Units		40,685,721			40,523,597			40,382,336			39,613,577			39,235,781			18,460,437
Market Price (at end of period)	$	42.80		$	38.66		$	34.25		$	37.66		$	36.30		$	26.00
Preferred Shares, Nominal Value	$	123,750,000		$	123,750,000		$	123,750,000		$	123,750,000		$	123,750,000
Equity Market Capitalization	$	1,865,098,859		$	1,690,392,260		$	1,506,845,008		$	1,615,597,310		$	1,548,008,850		$	479,971,362
DEBT CAPITALIZATION
Unsecured Debt Balance	$	271,000,000		$	112,000,000		$	219,000,000		$	182,000,000		$	170,000,000		$	—
Secured Debt Balance		1,326,127,000			1,366,090,242			1,376,148,003			1,386,313,775			1,396,262,538			617,279,770

Debt Capitalization	$	1,597,127,000		$	1,478,090,242		$	1,595,148,003		$	1,568,313,775		$	1,566,262,538		$	617,279,770

TOTAL MARKET CAPITALIZATION	$	3,462,225,859		$	3,168,482,502		$	3,101,993,011		$	3,183,911,085		$	3,114,271,388		$	1,097,251,132

*Preferred Shares/Total Market Capitalization*		3.6	%		3.9	%		4.0	%		3.9	%		4.0	%
*Shares and O.P. Units/Total Market Capitalization*		50.3	%		49.4	%		44.6	%		46.9	%		45.7	%		43.7	%
*Debt Capitalization/Total Market Capitalization*		46.1	%		46.6	%		51.4	%		49.3	%		50.3	%		56.3	%
*Equity Capitalization/Total Market Capitalization*		53.9	%		53.4	%		48.6	%		50.7	%		49.7	%		43.7	%
*Unsecured Debt Balance/Total Debt*		17.0	%		7.6	%		13.7	%		11.6	%		10.9	%		0.0	%

¨ Preferred shares/Total Market Capitalization
Debt Capitalization/ Total Market Capitalization
¨ Shares and O.P. Units/Total Market Capitalization

CAPITAL RESOURCES

	December 31, 2004			September 30, 2004			June 30, 2004			March 31, 2004			December 31, 2003			December 31, 2002
Cash on Hand	$	45,949,300		$	35,824,104		$	32,002,089		$	37,024,603		$	46,883,041		$	18,628,137
Line of Credit Capacity ⁽¹⁾	$	500,000,000		$	500,000,000		$	500,000,000		$	500,000,000		$	500,000,000		$	200,000,000
Amount Used (includes letters of credit)		(279,054,533	)		(114,124,533	)		(220,195,000	)		(183,195,000	)		(170,500,000	)		(131,473,671	)

Available LOC ⁽²⁾	$	220,945,467		$	385,875,467		$	279,805,000		$	316,805,000		$	329,500,000		$	68,526,329
Shelf Registration	$	1,000,000,000		$	1,000,000,000		$	1,000,000,000		$	1,000,000,000		$	1,000,000,000		$	500,000,000
Amount Used		(344,146,042	)		(344,146,042	)		(344,146,042	)		(344,146,042	)		(344,146,042	)		(155,977,292	)

Available Shelf	$	655,853,958		$	655,853,958		$	655,853,958		$	655,853,958		$	655,853,958		$	344,022,708

TOTAL CAPITAL RESOURCES	$	922,748,725		$	1,077,553,529		$	967,661,047		$	1,009,683,561		$	1,032,236,999		$	431,177,174

⁽¹⁾	The unsecured revolving line of credit established in November 2003 and amended in January 2005, gives PREIT the ability to increase the facility to $650 million under prescribed conditions.

⁽²⁾	The available line of credit is subject to covenants that may restrict amounts that can be borrowed.

PAGE 4

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

BALANCE SHEET

(Wholly Owned vs. Partnerships)


	December 31, 2004												December 31, 2003
	PREIT Wholly Owned			PREIT’s % of Partnerships ⁽⁵⁾			Corporate			Combined TOTAL			PREIT Wholly Owned			PREIT’s % of Partnerships ⁽⁵⁾			Corporate			Combined TOTAL
ASSETS
Investments in Real Estate, at cost
Retail Properties ⁽¹⁾	$	2,518,364,388		$	131,343,981			—		$	2,649,708,369		$	2,382,753,911		$	133,107,107			—		$	2,515,861,018
Multifamily Properties		—			—			—			—			—			—			—			—
Industrial Properties		2,504,211			—			—			2,504,211			2,504,211			—			—			2,504,211
Land Held for Development		9,862,704			—			—			9,862,704			5,604,470			—			—			5,604,470
Construction In Progress		10,952,450			2,542,307			—			13,494,757			20,230,813			1,506,178			—			21,736,991

TOTAL INVEST- MENTS IN REAL ESTATE		2,541,683,753			133,886,288			—			2,675,570,041			2,411,093,405			134,613,285			—			2,545,706,690
Accumulated Depreciation		(150,885,609	)		(34,023,363	)		—			(184,908,972	)		(78,416,266	)		(31,652,085	)		—			(110,068,351	)

Net Real Estate		2,390,798,144			99,862,925			—			2,490,661,069			2,332,677,139			102,961,200			—			2,435,638,339

Advances to Partnerships		—			—						—			—			—						—

		2,390,798,144			99,862,925			—			2,490,661,069			2,332,677,139			102,961,200			—			2,435,638,339

Other Assets:
Cash and Cash Equivalents		25,096,539			5,609,103			15,243,658			45,949,300			13,580,334			3,905,956			29,396,751			46,883,041
Rents and Other Receivables		27,286,042			11,328,239			3,676,167			42,290,448			22,860,444			7,991,132			4,814,392			35,665,968
Other assets held for sale ⁽¹⁾		6,837,914			—			—			6,837,914			37,686,662						—			37,686,662
Intangible Assets ⁽²⁾		159,804,366			—			12,045,312			171,849,678			172,502,487						9,041,888			181,544,375
Deferred Costs, Prepaid Taxes & Exp. & Other Assets		42,573,601			7,550,568			19,782,031			69,906,200			41,095,944			11,942,821			8,715,480			61,754,245

TOTAL OTHER ASSETS		261,598,462			24,487,910			50,747,168			336,833,540			287,725,871			23,839,909			51,968,511			363,534,291

TOTAL ASSETS		2,652,396,606			124,350,835			50,747,168			2,827,494,609			2,620,403,010			126,801,109			51,968,511			2,799,172,630

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable		1,162,479,171			107,513,205			—			1,269,992,376			1,211,192,636			109,581,659			—			1,320,774,295
Mortgage Debt Premium ⁽³⁾		56,134,624			—						56,134,624			75,488,243			—						75,488,243
Bank Loans Payable		—			—			271,000,000			271,000,000			—			—			170,000,000			170,000,000
Acquisition Term Loan & Unsecured Line of Credit		—			—			—			—			—			—			—			—
Liabilities Related to Assets held for sale		1,156,442						—			1,156,442			5,840,385						—			5,840,385
Other Liabilities ⁽⁴⁾		50,292,594			3,351,797			39,131,857			92,776,248			46,107,438			4,110,496			40,566,634			90,784,568

TOTAL LIABILITIES		1,270,062,831			110,865,002			310,131,857			1,691,059,690			1,338,628,702			113,692,155			210,566,634			1,662,887,491

Minority Interest		3,584,992			—			128,383,925			131,968,917			8,590,978			—			104,060,548			112,651,526

Shareholders’ Equity:
Shares of Beneficial Interest at $1 Par		—			—			36,272,160			36,272,160			—			—			35,544,280			35,544,280
Preferred Shares $0.01 Par								24,750			24,750									24,750			24,750
Capital Contributed in Excess of Par		—			—			899,506,128			899,506,128			—			—			877,444,615			877,444,615
Restricted Stock		—			—			(7,736,812	)		(7,736,812	)		—			—			(3,195,777	)		(3,195,777	)
Other Comprehensive Income		—			—			(1,821,457	)		(1,821,457	)		—			—			(2,005,840	)		(2,005,840	)
Retained Earnings (Distributions in Excess of Net Income)		—			—			78,221,233			78,221,233			—			—			115,821,585			115,821,585

TOTAL SHAREHOLDERS’ EQUITY		—			—			1,004,466,002			1,004,466,002			—			—			1,023,633,613			1,023,633,613

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,273,647,823		$	110,865,002		$	1,442,981,784		$	2,827,494,609		$	1,347,219,680		$	113,692,155		$	1,338,260,795		$	2,799,172,630



	December 31, 2002
	PREIT Wholly Owned			PREIT’s % of Partnerships ⁽⁵⁾			Corporate			Combined TOTAL
ASSETS
Investments in Real Estate, at cost
Retail Properties ⁽¹⁾	$	423,046,545		$	197,299,357			—		$	620,345,902
Multifamily Properties		290,606,714			14,728,865			—			305,335,579
Industrial Properties		2,504,211			—			—			2,504,211
Land Held for Development		—			—			—			—
Construction In Progress		23,271,863			1,554,110			—			24,825,973

TOTAL INVESTMENTS IN REAL ESTATE		739,429,333			213,582,332			—			953,011,665
Accumulated Depreciation		(136,733,257	)		(43,759,779	)		—			(180,493,036	)

Net Real Estate		602,696,076			169,822,553			—			772,518,629

Advances to Partnerships		—			—			105,309			105,309

		602,696,076			169,822,553			105,309			772,623,938

Other Assets:
Cash and Cash Equivalents		7,342,523			5,075,355			6,210,259			18,628,137
Rents and Other Receivables		8,847,093			10,122,016			4,395,970			23,365,079
Other assets held for sale ⁽¹⁾		—			—			—			—
Intangible Assets ⁽²⁾								16,679,886			16,679,886
Deferred Costs, Prepaid Taxes & Exp. & Other Assets		18,306,800			13,981,793			13,822,873			46,111,466

TOTAL OTHER ASSETS		34,496,416			29,179,164			41,108,988			104,784,568

TOTAL ASSETS		637,192,492			199,001,717			41,214,297			877,408,506

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable		319,751,324			166,728,446			—			486,479,770
Mortgage Debt Premium ⁽³⁾
Bank Loans Payable		119,229,707			11,570,293						130,800,000
Acquisition Term Loan & Unsecured Line of Credit		—			—			—			—
Liabilities Related to Assets held for sale		—			—			—			—
Other Liabilities ⁽⁴⁾		17,687,633			7,016,897			14,939,232			39,643,762

TOTAL LIABILITIES		456,668,664			185,315,636			14,939,232			656,923,532

Minority Interest		126,715			—			32,345,722			32,472,437

Shareholders’ Equity:
Shares of Beneficial Interest at $1 Par		—			—			16,697,117			16,697,117
Preferred Shares $0.01 Par
Capital Contributed in Excess of Par		—			—			216,768,855			216,768,855
Restricted Stock		—			—			(2,513,191	)		(2,513,191	)
Other Comprehensive Income		—			—			(4,365,728	)		(4,365,728	)
Retained Earnings (Distributions in Excess of Net Income)		—			—			(38,574,516	)		(38,574,516	)

TOTAL SHAREHOLDERS’ EQUITY		—			—			188,012,537			188,012,537

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	456,795,379		$	185,315,636		$	235,297,491		$	877,408,506

⁽¹⁾

Investment in real estate as of December 31, 2004 and December 31, 2003 includes $8,108,066 and $118,887,475, respectively relating to the non-core properties. The non-core properties are classified as held-for-sale for GAAP purposes. Other assets held for sale represents intangible assets and current assets of the non-core properties.

⁽²⁾

Includes value of acquired in-place leases and above-market value of leases recorded in connection with the acquisition of properties since 2002. Purchase accounting rules require a purchaser to separately value the leases that are in place at the acquisition date, as well as the above- or below-market values of the leases.

⁽³⁾	Represents premium that is recorded in connection with debt assumed when a property is purchased. The debt is marked to market at the acquisition date and the premium is amortized through interest expense over the remaining term of the debt.

⁽⁴⁾	For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses and Other Liabilities including Deficit in Partnerships Investments.

⁽⁵⁾

Includes PREIT’s percent of partnership investment that is “grossed up” to reflect the Company’s share of the Total Assets and Liabilities of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Company’s Equity in these properties.

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 44.

PAGE 5

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

BALANCE SHEET ⁽¹⁾

(Line of Business)


	December 31, 2004
	Malls			Power and Strip Centers			Total Retail			Other Properties			Corporate			Combined TOTAL
ASSETS
Investments in Real Estate, at cost ⁽²⁾	$	2,336,629,574		$	313,078,795		$	2,649,708,369		$	25,861,672		$	—		$	2,675,570,041

Accumulated Depreciation		(135,017,071	)		(47,764,970	)		(182,782,041	)		(2,126,931	)		—			(184,908,972	)

Net Real Estate		2,201,612,503			265,313,825			2,466,926,328			23,734,741			—			2,490,661,069

Investments in PREIT-RUBIN
Advances to Partnerships		—						—			—			—			—
Advances to PREIT-RUBIN								—

		2,201,612,503			265,313,825			2,466,926,328			23,734,741			—			2,490,661,069

Allowance for Possible Losses		—									—			—			—

		2,201,612,503			265,313,825			2,466,926,328			23,734,741			—			2,490,661,069

Other Assets:
Cash		26,115,513			4,590,129			30,705,642						15,243,658			45,949,300
Other assets held for sale		6,837,914						6,837,914						—			6,837,914
Intangible Assets ⁽³⁾		159,804,366						159,804,366						12,045,312			171,849,678
Other Assets, Net ⁽⁴⁾		52,375,910			23,813,146			76,189,056			12,549,394			23,458,198			112,196,648

Total Other Assets		245,133,703			28,403,275			273,536,978			12,549,394			50,747,168			336,833,540

TOTAL ASSETS		2,446,746,206			293,717,100			2,740,463,306			36,284,135			50,747,168			2,827,494,609

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable		1,165,736,877			104,255,499			1,269,992,376			—			—			1,269,992,376
Mortgage Debt Premium ⁽⁵⁾		54,794,532			1,340,092			56,134,624			—						56,134,624
Bank Loans Payable								—			—			271,000,000			271,000,000
Acquisition Term Loan & Unsecured Line of Credit		—						—			—			—			—
Construction Loans		—			—			—			—			—			—
Liabilities Related to Assets held for sale		1,156,442						1,156,442			—			—			1,156,442
Other Liabilities ⁽⁶⁾		44,391,004			5,723,480			50,114,484			3,529,907			39,131,857			92,776,248

TOTAL LIABILITIES		1,266,078,855			111,319,071			1,377,397,926			3,529,907			310,131,857			1,691,059,690

Minority Interest		3,584,992						3,584,992			—			128,383,925			131,968,917

Shareholders’ Equity:
Shares of Beneficial Interest at $1 Par		—						—			—			36,272,160			36,272,160
Preferred Shares $0.01 Par														24,750			24,750
Capital Contributed in Excess of Par		—						—			—			899,506,128			899,506,128
Restricted Stock		—						—			—			(7,736,812	)		(7,736,812	)
Other Comprehensive Income		—						—			—			(1,821,457	)		(1,821,457	)
Retained Earnings (Distributions in Excess of Net Income)		—						—			—			78,221,233			78,221,233

TOTAL SHAREHOLDERS’ EQUITY		—			—			—			—			1,004,466,002			1,004,466,002

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,269,663,847		$	111,319,071		$	1,380,982,918		$	3,529,907		$	1,442,981,784		$	2,827,494,609


	December 31, 2003
	Malls			Power and Strip Centers			Total Retail			Other Properties			Corporate			Combined TOTAL
ASSETS
Investments in Real Estate, at cost ⁽²⁾	$	2,217,101,551		$	298,759,467		$	2,515,861,018		$	29,845,672		$	—		$	2,545,706,690

Accumulated Depreciation		(68,469,015	)		(39,522,565	)		(107,991,580	)		(2,076,771	)		—			(110,068,351	)

Net Real Estate		2,148,632,536			259,236,902			2,407,869,438			27,768,901			—			2,435,638,339

Investments in PREIT-RUBIN
Advances to Partnerships		—						—			—			—			—
Advances to PREIT-RUBIN								—

		2,148,632,536			259,236,902			2,407,869,438			27,768,901			—			2,435,638,339

Allowance for Possible Losses		—									—			—			—

		2,148,632,536			259,236,902			2,407,869,438			27,768,901			—			2,435,638,339

Other Assets:
Cash		13,158,371			4,327,918			17,486,289						29,396,751			46,883,040
Other assets held for sale		37,686,662			—			37,686,662									37,686,662
Intangible Assets ⁽³⁾		172,502,487			—			172,502,487						9,041,888			181,544,375
Other Assets, Net ⁽⁴⁾		42,915,526			24,994,311			67,909,837			15,980,505			13,529,872			97,420,214

Total Other Assets		266,263,046			29,322,229			295,585,275			15,980,505			51,968,511			363,534,291

TOTAL ASSETS		2,414,895,582			288,559,131			2,703,454,713			43,749,406			51,968,511			2,799,172,630

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable		1,231,569,258			89,205,037			1,320,774,295			—			—			1,320,774,295
Mortgage Debt Premium ⁽⁵⁾		75,488,243						75,488,243									75,488,243
Bank Loans Payable								—						170,000,000			170,000,000
Acquisition Term Loan & Unsecured Line of Credit		—						—			—			—			—
Construction Loans		—			—			—			—			—			—
Liabilities Related to Assets held for sale		5,840,385						5,840,385			—			—			5,840,385
Other Liabilities ⁽⁶⁾		40,094,056			6,010,869			46,104,925			4,113,008			40,566,634			90,784,567

TOTAL LIABILITIES		1,352,991,942			95,215,906			1,448,207,848			4,113,008			210,566,634			1,662,887,490

Minority Interest		8,464,264			126,715			8,590,979			—			104,060,548			112,651,527

Shareholders’ Equity:
Shares of Beneficial Interest at $1 Par		—						—			—			35,544,280			35,544,280
Preferred Shares $0.01 Par														24,750			24,750
Capital Contributed in Excess of Par		—						—			—			877,444,615			877,444,615
Restricted Stock		—						—			—			(3,195,777	)		(3,195,777	)
Other Comprehensive Income		—						—			—			(2,005,840	)		(2,005,840	)
Retained Earnings (Distributions in Excess of Net Income)		—						—			—			115,821,585			115,821,585

TOTAL SHAREHOLDERS’ EQUITY		—			—			—			—			1,023,633,613			1,023,633,613

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,361,456,206		$	95,342,621		$	1,456,798,827		$	4,113,008		$	1,338,260,795		$	2,799,172,630


	December 31, 2002
	Retail			Multifamily			Other Properties			Corporate			Combined TOTAL
ASSETS
Investments in Real Estate, at cost ⁽²⁾	$	620,345,902		$	305,335,579		$	27,330,184		$	—		$	953,011,665

Accumulated Depreciation		(79,121,149	)		(99,346,274	)		(2,025,613	)		—			(180,493,036	)

Net Real Estate		541,224,753			205,989,305			25,304,571			—			772,518,629

Investments in PREIT-RUBIN
Advances to Partnerships		—			—			—			105,309			105,309
Advances to PREIT-RUBIN

		541,224,753			205,989,305			25,304,571			105,309			772,623,938

Allowance for Possible Losses		—			—			—			—			—

		541,224,753			205,989,305			25,304,571			105,309			772,623,938

Other Assets:
Cash		8,812,330			3,629,864			(24,316	)		6,210,259			18,628,137
Other assets held for sale														—
Intangible Assets ⁽³⁾											16,679,886			16,679,886
Other Assets, Net ⁽⁴⁾		42,129,659			9,098,594			29,449			18,218,843			69,476,545

Total Other Assets		50,941,989			12,728,458			5,133			41,108,988			104,784,568

TOTAL ASSETS		592,166,742			218,717,763			25,309,704			41,214,297			877,408,506

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable		280,092,311			206,387,459			—			—			486,479,770
Mortgage Debt Premium ⁽⁵⁾
Bank Loans Payable		94,712,082			2,500,000			33,587,919			—			130,800,000
Acquisition Term Loan & Unsecured Line of Credit		—			—			—			—			—
Construction Loans		—			—			—			—			—
Liabilities Related to Assets held for sale		—			—			—			—			—
Other Liabilities ⁽⁶⁾		14,288,005			5,270,638			5,145,887			14,939,232			39,643,762

TOTAL LIABILITIES		389,092,398			214,158,097			38,733,806			14,939,232			656,923,532

Minority Interest		126,715						—			32,345,722			32,472,437

Shareholders’ Equity:
Shares of Beneficial Interest at $1 Par		—			—			—			16,697,117			16,697,117
Preferred Shares $0.01 Par
Capital Contributed in Excess of Par		—			—			—			216,768,855			216,768,855
Restricted Stock		—			—			—			(2,513,191	)		(2,513,191	)
Other Comprehensive Income		—			—			—			(4,365,728	)		(4,365,728	)
Retained Earnings (Distributions in Excess of Net Income)		—			—			—			(38,574,516	)		(38,574,516	)

TOTAL SHAREHOLDERS’ EQUITY		—			—			—			188,012,537			188,012,537

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	389,219,113		$	214,158,097		$	38,733,806		$	235,297,491		$	877,408,506

⁽¹⁾

Includes PREIT’s percent of partnership investments that is “grossed up” to reflect the Company's share of the Total Assets and Liabilities of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Trust’s Equity in these properties.

⁽²⁾

⁽³⁾

⁽⁴⁾	Deferred Costs, Prepaid Taxes and Expenses and Other Assets include Rents and Other Receivables for Partnerships.

⁽⁵⁾	Represents premium that is recorded in connection with debt assumed in connection with property purchases. The debt is marked to market at the acquisition date and the premium is amortized through interest expense over the remaining term of the debt.

⁽⁶⁾	For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses and Other Liabilities including Deficit Partnership Investments.

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 44.

PAGE 6

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

INCOME STATEMENT ⁽¹⁾

QUARTERLY COMPARISON

(Wholly Owned vs. Partnerships)


	Q4 04 (3 months ended 12/31/04)																				Q4 03 (3 months ended 12/31/03)
	Wholly Owned					Partnerships					Corporate					Combined TOTAL			TOTAL % CHANGE		Wholly Owned					Partnerships					Corporate					Combined TOTAL
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies)	$	69,725,662				$	5,380,110				$	—					75,105,772		33.5	%	$	50,838,550				$	5,419,424				$	—				$	56,257,974
Straight-Lining of Base Rents		1,312,653					62,109					—					1,374,762		30.3	%		1,058,632					(3,327	)				—					1,055,305
Percentage Rents		4,618,507					126,665					—					4,745,172		35.9	%		3,474,981					15,832					—					3,490,813
Expense Reimbursables		27,934,269					1,723,064					—					29,657,333		20.4	%		22,766,130					1,856,073					—					24,622,203
Lease Termination		1,252,868					—					—					1,252,868		68.3	%		744,306					—					—					744,306
Other Real Estate Revenues		5,943,302					258,453					—					6,201,755		56.2	%		3,604,489					366,474					—					3,970,963

TOTAL REVENUES		110,787,261		94	%		7,550,401		6	%		—		0	%		118,337,662		31.3	%		82,487,088		92	%		7,654,476		8	%		—		0	%		90,141,564

REAL ESTATE OPERATING EXPENSES
Operating and Maintenance		30,334,487					1,547,390					—					31,881,877		33.2	%		21,994,771					1,941,169					—					23,935,940
Real Estate Taxes		8,954,250					663,230					—					9,617,480		25.0	%		7,026,507					669,198					—					7,695,705
																																					—

TOTAL EXPENSES		39,288,737		95	%		2,210,620		5	%		—		0	%		41,499,357		31.2	%		29,021,278		92	%		2,610,367		8	%		—		0	%		31,631,645

NET OPERATING INCOME		71,498,524		93	%		5,339,781		7	%		—		0	%		76,838,305		31.3	%		53,465,810		91	%		5,044,109		9	%		—		0	%		58,509,919

OTHER INCOME (EXPENSES)
Management Company Revenue		—					—					4,072,413					4,072,413		11.2	%		—					—					3,662,141					3,662,141
Interest and Other Income		—					—					161,323					161,323		-51.7	%		—					—					334,319					334,319
General & Administrative:
Corporate Payroll and Benefits		—					—					(7,466,438	)				(7,466,438	)	-27.2	%		—					—					(10,261,792	)				(10,261,792	)
Other G&A Expenses		—					—					(3,725,032	)				(3,725,032	)	-51.0	%		—					—					(7,597,474	)				(7,597,474	)

Earnings before interest expenses, taxes, depreciation and amortization		71,498,524		102	%		5,339,781		8	%		(6,957,734	)	-10	%		69,880,571		56.5	%		53,465,810		120	%		5,044,109		11	%		(13,862,806	)	-31	%		44,647,113

Interest Expense ⁽²⁾		(16,880,516	)				(2,083,405	)				(1,890,539	)				(20,854,460	)	27.7	%		(13,107,191	)				(2,190,986	)				(1,033,909	)				(16,332,086	)
Depreciation & Amortization		(24,549,301	)				(2,558,958	)				(285,982	)				(27,394,241	)	41.7	%		(17,954,109	)				(1,243,672	)				(141,450	)				(19,339,231	)

TOTAL OTHER INCOME (EXPENSES)		(41,429,817	)				(4,642,363	)				(2,176,521	)				(48,248,701	)	35.3	%		(31,061,300	)				(3,434,658	)				(1,175,359	)				(35,671,317	)

Gains (loss) on sales of interests in Real Estate							(45,001	)				—					(45,001	)	N/A			—					4,457,176					—					4,457,176

Income before Minority Interest		30,068,707					652,417					(9,134,255	)				21,586,869		60.7	%		22,404,510					6,066,627					(15,038,165	)				13,432,972

Minority Interest in Properties		(64,900	)				—										(64,900	)	-81.3	%		(346,548	)				—					—					(346,548	)
Minority Interest of O.P. Unitholders		—					—					(2,333,949	)				(2,333,949	)	94.7	%		—					—					(1,198,594	)				(1,198,594	)

Income from Operations		30,003,807					652,417					(11,468,204	)				19,188,020		61.4	%		22,057,962					6,066,627					(16,236,759	)				11,887,830

Discontinued Operations:
Income from Disposed Real Estate							—					—					—		—								—					—					—
Minority Interest of O.P. Unitholders												(23,513	)				(23,513	)	N/A													(580,392	)				(580,392	)
Gain (loss) on Disposition of Discontinued Operations		—					—										—		N/A			194,441															194,441

TOTAL DISCONTINUED OPERATIONS		—					—					(23,513	)				(23,513	)	N/A			194,441										(580,392	)				(385,951	)

NET INCOME	$	30,003,807		157	%	$	652,417		3	%	$	(11,491,717	)	-60	%	$	19,164,507		66.6	%	$	22,252,403		193	%	$	6,066,627		53	%	$	(16,817,151	)	-146	%	$	11,501,879

⁽¹⁾

Includes PREIT’s percent of partnership investments that is “grossed up” to reflect the Company's share of the Total Revenues and Expenses of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments.

⁽²⁾	Capitalized interest expense of $379,000 is not included in the quarter ended 12/31/04 and $338,000 is not included in the quarter ended 12/31/03.

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 44.

PAGE 7

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

INCOME STATEMENT ⁽¹⁾

YEARLY COMPARISON

(Wholly Owned vs. Partnerships)


	CY 2004 (12 months ended 12/31/04)																				CY 2003 (12 months ended 12/31/03)
	Wholly Owned					Partnerships					Corporate					Combined TOTAL			TOTAL % CHANGE		Wholly Owned					Partnerships					Corporate					Combined TOTAL
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies)	$	265,787,462				$	21,001,931				$	—					286,789,393		76.7	%	$	135,670,117				$	26,669,101				$	—				$	162,339,218
Straight-Lining of Base Rents		5,098,086					113,879					—					5,211,965		85.8	%		2,633,353					172,194					—					2,805,547
Percentage Rents		10,152,342					314,403					—					10,466,745		119.7	%		4,422,624					342,437					—					4,765,061
Expense Reimbursables		120,885,011					6,365,867										127,250,878		119.0	%		49,153,697					8,962,472										58,116,169
Lease Termination		3,953,472					—					—					3,953,472		238.8	%		1,155,954					10,995					—					1,166,949
Other Real Estate Revenues		12,535,331					697,024					—					13,232,355		75.4	%		6,371,793					1,173,036					—					7,544,829

TOTAL REVENUES		418,411,704		94	%		28,493,104		6	%	$	—		0	%		446,904,808		88.8	%		199,407,538		84	%		37,330,235		16	%	$	—		0	%		236,737,773

REAL ESTATE OPERATING EXPENSES
Operating and Maintenance		120,266,004					6,325,367					—					126,591,371		95.1	%		54,413,181					10,472,504					—					64,885,685
Real Estate Taxes		37,462,948					2,463,793					—					39,926,741		86.4	%		18,245,203					3,174,423					—					21,419,626

TOTAL EXPENSES		157,728,952		95	%		8,789,160		5	%		—		0	%		166,518,112		92.9	%		72,658,384		84	%		13,646,927		16	%		—		0	%		86,305,311

NET OPERATING INCOME		260,682,752		93	%		19,703,944		7	%		—		0	%		280,386,696		86.4	%		126,749,154		84	%		23,683,308		16	%		—		0	%		150,432,462

OTHER INCOME (EXPENSES)
Management Company Revenue		—					—					9,702,616					9,702,616		-11.6	%		—					—					10,973,015					10,973,015
Interest and Other Income		—					—					1,026,116					1,026,116		15.8	%		—					—					885,975					885,975
General & Administrative:
Corporate Payroll and Benefits		—					—					(30,057,014	)				(30,057,014	)	29.7	%		—					—					(23,168,976	)				(23,168,976	)
Other G&A Expenses		—					—					(14,612,911	)				(14,612,911	)	-11.5	%		—					—					(16,509,394	)				(16,509,394	)

Earnings before interest expenses, taxes, depreciation and amortization		260,682,752		106	%		19,703,944		8	%		(33,941,193	)	-14	%		246,445,503		101.0	%		126,749,154		103	%		23,683,308		19	%		(27,819,380	)	-23	%		122,613,082

Interest Expense ⁽²⁾		(68,044,863	)				(8,316,639	)				(7,190,486	)				(83,551,988	)	59.6	%		(33,511,864	)				(11,381,104	)				(7,466,709	)				(52,359,677	)
Depreciation & Amortization		(96,379,783	)				(5,780,886	)				(931,325	)				(103,091,994	)	126.5	%		(39,961,668	)				(5,071,443	)				(489,253	)				(45,522,364	)

TOTAL OTHER INCOME (EXPENSES)		(164,424,646	)				(14,097,525	)				(8,121,811	)				(186,643,982	)	90.7	%		(73,473,532	)				(16,452,547	)				(7,955,962	)				(97,882,041	)

Gains (loss) on sales of interests in Real Estate							1,484,182					—					1,484,182		N/A			1,111,692					15,087,618					—					16,199,310

Income before Minority Interest		96,258,106					7,090,601					(42,063,004	)				61,285,703		49.7	%		54,387,314					22,318,379					(35,775,342	)				40,930,351

Minority Interest in Properties		(629,599	)				—										(629,599	)	N/A			(864,465	)				—					—					(864,465	)

Minority Interest of O.P. Unitholders		—					—					(5,695,811	)				(5,695,811	)	72.7	%		—					—					(3,298,010	)				(3,298,010	)

Income from Operations		95,628,507					7,090,601					(47,758,815	)				54,960,293		49.5	%		53,522,849					22,318,379					(39,073,352	)				36,767,876

Discontinued Operations:
Income from Disposed Real Estate							—										—		—								—					—					—
Minority Interest of O.P. Unitholders												(622,663	)				(622,663	)	N/A													(18,848,730	)				(18,848,730	)
Gain (loss) on Disposition of Discontinued Operations		—					—					(550,000	)				(550,000	)	N/A			178,121,005															178,121,005

TOTAL DISCONTINUED OPERATIONS		—					—					(1,172,663	)				(1,172,663	)	N/A			178,121,005										(18,848,730	)				159,272,275

NET INCOME	$	95,628,507		178	%	$	7,090,601		13	%	$	(48,931,478	)	-91	%	$	53,787,630		-72.6	%	$	231,643,854		118	%	$	22,318,379		11	%	$	(57,922,082	)	-30	%	$	196,040,151

⁽¹⁾

Includes PREIT’s percent of partnerships investment that is “grossed up” to reflect the Company's share of the Total Revenues and Expenses of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments. The consolidated financial statements, which are presented in accordance with GAAP, reflect only the Trust’s equity in these properties.

⁽²⁾	Capitalized interest expense of $1,418,000 is not included in the year ended 12/31/04 and $1,408,000 is not included in the year ended 12/31/03.

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 44.

PAGE 8

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

INCOME STATEMENT ⁽¹⁾

QUARTERLY COMPARISON

(Line of Business)


	Q4 04 (3 months ended 12/31/04)																				Q4 03 (3 months ended 12/31/03)
	RETAIL					OTHER PROPERTIES					CORPORATE					Combined TOTAL			TOTAL% CHANGE		RETAIL					MULTIFAMILY					OTHER PROPERTIES					CORPORATE					Combined TOTAL
REAL ESTATE OPERATING REVENUES
Base Rents	$	75,011,376				$	94,396				$	—				$	75,105,772		33.5	%	$	56,172,818				$	—				$	85,156				$	—				$	56,257,974
Straight-Lining of Base Rents		1,374,762					—					—					1,374,762		30.3	%		1,055,305					—					—					—					1,055,305
Percentage Rents		4,745,172					—					—					4,745,172		35.9	%		3,490,813					—					—					—					3,490,813
Expense Reimbursables		29,649,040					8,293										29,657,333		20.4	%		24,620,341					2,248					(386	)				—					24,622,203
Lease Termination		1,252,868					—					—					1,252,868		68.3	%		744,306					—					—										744,306
Other Real Estate Revenues		6,201,755					—					—					6,201,755		56.2	%		3,970,963					—					—					—					3,970,963

TOTAL REVENUES		118,234,973		100	%		102,689		0	%		—		—			118,337,662		31.3	%		90,054,546		100	%		2,248		0	%		84,770		0	%		—		—			90,141,564

REAL ESTATE OPERATING EXPENSES
Operating and Maintenance		31,877,582					4,295					—					31,881,877		33.2	%		23,918,556					14,494					2,890					—					23,935,940
Real Estate Taxes		9,607,260					10,220					—					9,617,480		25.0	%		7,695,695					10					—					—					7,695,705

TOTAL EXPENSES		41,484,842		100	%		14,515		0	%		—		—			41,499,357		31.2	%		31,614,251		100	%		14,504		0	%		2,890		0	%		—		—			31,631,645

NET OPERATING INCOME		76,750,131		100	%		88,174		0	%		—		—			76,838,305		31.3	%		58,440,295		100	%		(12,256	)	0	%		81,880		0	%		—		—			58,509,919

OTHER INCOME (EXPENSES)
Management Company Revenue		—					—					4,072,413					4,072,413		11.2	%		—					—					—					3,662,141					3,662,141
Interest and Other Income		—					—					161,323					161,323		-51.7	%		—					—					—					334,319					334,319
General and Administrative:																																					—					—
Corporate Payroll and Benefits		—					—					(7,466,438	)				(7,466,438	)	-27.2	%		—					—					—					(10,261,792	)				(10,261,792	)
Other General & Administrative		—					—					(3,725,032	)				(3,725,032	)	-51.0	%		—					—					—					(7,597,474	)				(7,597,474	)

Earnings before interest expenses, taxes, depreciation and amortization		76,750,131		110	%		88,174		0	%		(6,957,734	)	-10	%		69,880,571		56.5	%		58,440,295		131	%		(12,256	)	0	%		81,880		0	%		(13,862,806	)	-31	%		44,647,113

Interest Expense ⁽²⁾		(18,963,921	)				—					(1,890,539	)				(20,854,460	)	27.7	%		(15,298,177	)				—					—					(1,033,909	)				(16,332,086	)
Depreciation & Amortization		(27,095,719	)				(12,540	)				(285,982	)				(27,394,241	)	41.7	%		(19,185,241	)				—					(12,540	)				(141,450	)				(19,339,231	)

TOTAL OTHER INCOME (EXPENSES)		(46,059,640	)				(12,540	)				(2,176,521	)				(48,248,701	)	35.3	%		(34,483,418	)				—					(12,540	)				(1,175,359	)				(35,671,317	)

Gains (loss) on sales of interests in Real Estate		(45,001	)				—					—					(45,001	)	N/A								4,457,176										—					4,457,176

Income before Minority Interest		30,645,490					75,634					(9,134,255	)				21,586,869		60.7	%		23,956,877					4,444,920					69,340					(15,038,165	)				13,432,972

Minority Interest in Properties		(64,900	)				—										(64,900	)				(346,548	)																			(346,548	)

Minority Interest of O.P. Unitholders		—					—					(2,333,949	)				(2,333,949	)	94.7	%		—					—					—					(1,198,594	)				(1,198,594	)

Income from Operations		30,580,590					75,634					(11,468,204	)				19,188,020		61.4	%		23,610,329					4,444,920					69,340					(16,236,759	)				11,887,830

Discontinued Operations:
Income from Disposed Real Estate							—					—					—		—													—					—					—
Minority Interest of O.P. Unitholders												(23,513	)				(23,513	)	N/A			—					—					—					(580,392	)				(580,392	)
Gain (loss) on Disposition of Discontinued Operations												—					—		N/A			—					194,441					—					—					194,441

TOTAL DISCONTINUED OPERATIONS		—					—					(23,513	)				(23,513	)	N/A			—					194,441					—					(580,392	)				(385,951	)

NET INCOME	$	30,580,590		160	%	$	75,634		0	%	$	(11,491,717	)	-60	%	$	19,164,507		66.6	%	$	23,610,329		205	%	$	4,639,361		40	%	$	69,340		1	%	$	(16,817,151	)	-146	%	$	11,501,879

⁽¹⁾

Includes PREIT’s percent of partnership investments that is “grossed up” to reflect the Company’s share of the Total Revenues and Expenses of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments.

⁽²⁾	Capitalized interest expense of $379,000 is not included in the quarter ended 12/31/04 and $338,000 is not included in the quarter ended 12/31/03.

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 44.

PAGE 9

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

INCOME STATEMENT ⁽¹⁾

YEARLY COMPARISON

(Line of Business)


	CY 2004 (12 months ended 12/31/04)																				CY 2003 (12 months ended 12/31/03)
	RETAIL					OTHER PROPERTIES					CORPORATE					Combined TOTAL			TOTAL% CHANGE		RETAIL					MULTIFAMILY					OTHER PROPERTIES					CORPORATE					Combined TOTAL
REAL ESTATE OPERATING REVENUES
Base Rents	$	286,439,529				$	349,864				$	—				$	286,789,393		73.8	%	$	136,294,338				$	28,402,431				$	337,154				$	—				$	165,033,923
Less Vacan- cies and Concess- ions							—					—					—		N/A			—					(2,694,705	)				—					—					(2,694,705	)
Straight-Lining of Base Rents		5,211,965					—					—					5,211,965		85.8	%		2,805,547					—					—					—					2,805,547
Percentage Rents		10,466,745					—					—					10,466,745		119.7	%		4,765,061					—					—					—					4,765,061
Expense Reimbursables		127,206,265					44,613										127,250,878		119.0	%		58,111,682					2,248					2,239					—					58,116,169
Lease Termination		3,953,472					—					—					3,953,472		238.8	%		1,041,180					125,769					—										1,166,949
Other Real Estate Revenues		13,232,355					—					—					13,232,355		75.4	%		6,483,565					1,061,639					(375	)				—					7,544,829

TOTAL REVENUES		446,510,331		100	%		394,477		0	%		—		—			446,904,808		88.8	%		209,501,373		88	%		26,897,382		11	%		339,018		0	%		—		—			236,737,773

REAL ESTATE OPERATING EXPENSES
Operating and Maintenance		126,577,196					14,175					—					126,591,371		95.1	%		54,901,077					9,971,515					13,093					—					64,885,685
Real Estate Taxes		39,888,301					38,440					—					39,926,741		86.4	%		18,957,900					2,459,030					2,696					—					21,419,626

TOTAL EXPENSES		166,465,497		100	%		52,615		0	%		—		—			166,518,112		92.9	%		73,858,977		86	%		12,430,545		14	%		15,789		0	%		—		—			86,305,311

NET OPERATING INCOME		280,044,834		100	%		341,862		0	%		—		—			280,386,696		86.4	%		135,642,396		90	%		14,466,837		10	%		323,229		0	%		—		—			150,432,462

OTHER INCOME (EXPENSES)
Management Company Revenue		—					—					9,702,616					9,702,616		-11.6	%		—					—					—					10,973,015					10,973,015
Interest and Other Income		—					—					1,026,116					1,026,116		15.8	%		—					—					—					885,975					885,975
General and Administrative:												—																									—					—
Corporate Payroll and Benefits		—					—					(30,057,014	)				(30,057,014	)	29.7	%		—					—					—					(23,168,976	)				(23,168,976	)
Other General & Administrative		—					—					(14,612,911	)				(14,612,911	)	-11.5	%		—					—					—					(16,509,394	)				(16,509,394	)

Earnings before interest expenses, taxes, depreciation and amortization		280,044,834		114	%		341,862		0	%		(33,941,193	)	-14	%		246,445,503		101.0	%		135,642,396		111	%		14,466,837		12	%		323,229		0	%		(27,819,380	)	-23	%		122,613,082

Interest Expense ⁽²⁾		(76,361,502	)				—					(7,190,486	)				(83,551,988	)	59.6	%		(39,240,910	)				(5,652,058	)				—					(7,466,709	)				(52,359,677	)
Depreciation & Amortization		(102,110,509	)				(50,160	)				(931,325	)				(103,091,994	)	126.5	%		(42,527,119	)				(2,454,834	)				(51,158	)				(489,253	)				(45,522,364	)

TOTAL OTHER INCOME (EXPENSES)		(178,472,011	)				(50,160	)				(8,121,811	)				(186,643,982	)	90.7	%		(81,768,029	)				(8,106,892	)				(51,158	)				(7,955,962	)				(97,882,041	)

Gains (loss) on sales of interests in Real Estate		1,484,182					—					—					1,484,182		N/A			1,111,692					15,087,618										—					16,199,310

Income before Minority Interest		103,057,005					291,702					(42,063,004	)				61,285,703		49.7	%		54,986,059					21,447,563					272,071					(35,775,342	)				40,930,351

Minority Interest in Properties		(629,599	)				—										(629,599	)				(864,465	)																			(864,465	)

Minority Interest of O.P. Unitholders		—					—					(5,695,811	)				(5,695,811	)	72.7	%		—					—					—					(3,298,010	)				(3,298,010	)

Income from Operations		102,427,406					291,702					(47,758,815	)				54,960,293		49.5	%		54,121,594					21,447,563					272,071					(39,073,352	)				36,767,876

Discontinued Operations:
Income from Disposed Real Estate							—					—					—		—													—					—					—
Minority Interest of O.P. Unitholders												(622,663	)				(622,663	)	N/A			—					—					—					(18,848,730	)				(18,848,730	)
Gain (loss) on Disposition of Discontinued Operations												(550,000	)				(550,000	)	N/A			—					178,121,005					—					—					178,121,005

TOTAL DISCONT- INUED OPERATIONS		—					—					(1,172,663	)				(1,172,663	)	N/A			—					178,121,005					—					(18,848,730	)				159,272,275

NET INCOME	$	102,427,406		190	%	$	291,702		1	%	$	(48,931,478	)	-91	%	$	53,787,630		-72.6	%	$	54,121,594		28	%	$	199,568,568		102	%	$	272,071		0	%	$	(57,922,082	)	-30	%	$	196,040,151

⁽¹⁾	Includes PREIT’s percent of partnerships investment that is “grossed up” to reflect the Company’s share of the Total Revenues and Expenses of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical

⁽²⁾	Capitalized interest expense of $1,418,000 is not included in the year ended 12/31/04 and $1,408,000 is not included in the year ended 12/31/03.

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 44.

PAGE 10

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

RETAIL INCOME STATEMENT ⁽¹⁾

QUARTERLY COMPARISON


	Q4 04 (3 months ended 12/31/04)																			Q4 03 (3 months ended 12/31/03)
	Combined TOTAL			WO					Partnerships					% Change TOTAL		% Change WO		% Change Partnerships		Combined TOTAL			WO					Partnerships
R.E. OPERATING REVENUES
Base Rents	$	75,011,376		$	69,631,266				$	5,380,110				33.5	%	37.2	%	-0.7	%	$	56,172,818		$	50,753,394				$	5,419,424
Straight-Lining of Base Rents		1,374,762			1,312,653					62,109				30.3	%	24.0	%	-1966.8	%		1,055,305			1,058,632					(3,327	)
Percentage Rents		4,745,172			4,618,507					126,665				35.9	%	32.9	%	700.1	%		3,490,813			3,474,981					15,832
Expense Reimbursables		29,649,040			27,925,976					1,723,064				20.4	%	22.7	%	-7.2	%		24,620,341			22,764,268					1,856,073
Lease Termination and Other Income		1,252,868			1,252,868					—				68.3	%	68.3	%	N/A			744,306			744,306					—
Other Real Estate Revenues		6,201,755			5,943,302					258,453				56.2	%	64.9	%	-29.5	%		3,970,963			3,604,489					366,474

TOTAL REVENUES		118,234,973			110,684,572		94	%		7,550,401		6	%	31.3	%	34.3	%	-1.4	%		90,054,546			82,400,070		92	%		7,654,476		8	%

R.E. OPERATING EXPENSES
Operating and Maintenance		31,877,582			30,330,192					1,547,390				33.3	%	38.0	%	-20.3	%		23,918,556			21,977,387					1,941,169
Real Estate Taxes		9,607,260			8,944,030					663,230				24.8	%	27.3	%	-0.9	%		7,695,695			7,026,497					669,198

Total Operating Expenses		41,484,842			39,274,222		95	%		2,210,620		5	%	31.2	%	35.4	%	-15.3	%		31,614,251			29,003,884		92	%		2,610,367		8	%

NET OPERATING INCOME		76,750,131			71,410,350		93	%		5,339,781		7	%	31.3	%	33.7	%	5.9	%		58,440,295			53,396,186		91	%		5,044,109		9	%

OTHER INCOME (EXP.)
Interest Expense		(18,963,921	)		(16,880,516	)				(2,083,405	)			24.0	%	28.8	%	-4.9	%		(15,298,177	)		(13,107,191	)				(2,190,986	)
Depreciation & Amortization		(27,095,719	)		(24,536,761	)				(2,558,958	)			41.2	%	36.8	%	105.8	%		(19,185,241	)		(17,941,569	)				(1,243,672	)

TOTAL OTHER INCOME (EXP.)		(46,059,640	)		(41,417,277	)				(4,642,363	)			33.6	%	33.4	%	35.2	%		(34,483,418	)		(31,048,760	)				(3,434,658	)

Gains (loss) on sales of int. in R.E		(45,001	)		—					(45,001	)			N/A		N/A		N/A			—			—					—

Income before Minority Int.		30,645,490			29,993,073					652,417				27.9	%	34.2	%	-59.5	%		23,956,877			22,347,426					1,609,451

Minority Interest in Properties		(64,900	)		(64,900	)								-81.3	%	-81.3	%	N/A			(346,548	)		(346,548	)				—

Discontinued Operations:										—											—

Income from Disposed Real Estate		—								—				N/A		N/A		N/A			—

Gain (loss) on Disposition of Discontinued Operations		—			—					—				N/A		N/A		N/A

TOTAL DISCONTINUED OPERATIONS		—			—									N/A		N/A		N/A			—			—					—

NET INCOME	$	30,580,590		$	29,928,173		98	%	$	652,417		2	%	29.5	%	36.0	%	-59.5	%	$	23,610,329		$	22,000,878		93	%	$	1,609,451		7	%

SAME STORE COMPARISON


	Q4 04 (3 months ended 12/31/04)																									Q4 03 (3 months ended 12/31/03)
	Combined TOTAL			SAME					NEW					REDEV					DIVEST					% Change Same Store		Combined TOTAL			SAME					NEW					REDEV					DIVEST
Base Rents	$	75,011,376		$	36,915,496				$	35,534,378				$	2,540,843				$	20,659				0.9	%	$	56,172,818		$	36,579,163				$	15,049,652				$	2,237,499				$	2,306,505
Straight-Lining of Base Rents		1,374,762			561,656					793,830					19,276					—				-26.9	%		1,055,305			768,470					245,716					19,809					21,310
Percentage Rents		4,745,172			1,576,657					2,955,154					315,939					(102,578	)			6.1	%		3,490,813			1,485,956					1,605,405					256,288					143,164
Expense Reimbursables		29,649,040			15,152,942					13,477,514					1,257,852					(239,267	)			-11.9	%		24,620,341			17,195,218					5,477,132					980,621					967,370
Lease Termination		1,252,868			699,995					500,658					52,215					—				0.2	%		744,306			698,750					—					—					45,556
Other Real Estate Revenues		6,201,755			3,072,759					2,650,589					428,144					50,264				24.4	%		3,970,963			2,470,148					1,057,505					311,004					132,306

TOTAL REVENUES		118,234,973			57,979,504		49	%		55,912,122		47	%		4,614,269		4	%		(270,922	)	0	%	-2.1	%		90,054,546			59,197,705		66	%		23,435,410		26	%		3,805,221		4	%		3,616,211

R.E. OPERATING EXPENSES
Operating and Maintenance		31,877,582			14,468,131					15,588,999					1,821,064					(612	)			-7.0	%		23,918,556			15,553,266					5,982,663					1,147,600					1,235,027
Real Estate Taxes		9,607,260			5,178,489					4,188,669					260,256					(20,154	)			-5.0	%		7,695,695			5,450,011					1,667,050					231,899					346,735

Total Operating Expenses		41,484,842			19,646,620		47	%		19,777,668		48	%		2,081,320		5	%		(20,766	)	0	%	-6.5	%		31,614,251			21,003,277		66	%		7,649,713		24	%		1,379,499		4	%		1,581,762

NET OPERATING INCOME		76,750,131			38,332,884		50	%		36,134,454		47	%		2,532,949		3	%		(250,156	)	0	%	0.4	%		58,440,295			38,194,428		65	%		15,785,697		27	%		2,425,722		4	%		2,034,449

OTHER INCOME (EXP.)
Interest Expense		(18,963,921	)		(10,414,388	)				(7,776,333	)				(773,201	)				—				0.2	%		(15,298,177	)		(10,394,492	)				(3,828,135	)				(783,252	)				(292,298	)
Depreciation & Amortization		(27,095,719	)		(12,693,909	)				(13,742,033	)				(659,777	)				—				5.1	%		(19,185,241	)		(12,077,879	)				(6,554,859	)				(496,649	)				(55,855	)

TOTAL OTHER INCOME (EXP.)		(46,059,640	)		(23,108,297	)				(21,518,366	)				(1,432,978	)				—				2.8	%		(34,483,418	)		(22,472,371	)				(10,382,994	)				(1,279,901	)				(348,153	)

Gain (loss) on sales of int. in R.E.		(45,001	)		—					—					—					(45,001	)			N/A			—								—					—

Income before Minority Int.		30,645,490			15,224,588					14,616,089					1,099,971					(295,157	)			-3.2	%		23,956,877			15,722,057					5,402,703					1,145,821					1,686,296

Minority Interest in Properties		(64,900	)							(66,183	)									1,283							(346,548	)		(310,751	)				(29,338	)				—					(6,459	)
Discontinued Operations:
Income from Disposed Real Estate		—			—					—					—					—				N/A						—					—					—					—
Gain (loss) on Disposition of Discontinued Operations		—			—					—					—					—				N/A

TOTAL DISCONTINUED OPERATIONS		—			—					—					—					—				N/A			—

NET INCOME	$	30,580,590		$	15,224,588		50	%	$	14,549,906		48	%	$	1,099,971		4	%	$	(293,874	)	-1	%	-1.2	%	$	23,610,329		$	15,411,306		65	%	$	5,373,365		23	%	$	1,145,821		5	%	$	1,679,837

⁽¹⁾

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 44.

PAGE 11

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

RETAIL INCOME STATEMENT ⁽¹⁾

YEARLY COMPARISON


	CY 2004 (12 months ended 12/31/04)																			CY 2003 (12 months ended 12/31/03)
	Combined TOTAL			WO					Partnerships					% Change TOTAL		% Change WO		% Change Partnerships		Combined TOTAL			WO					Partnerships
R.E. OPERATING REVENUES
Base Rents	$	286,439,529		$	265,437,598				$	21,001,931				110.2	%	137.6	%	-14.6	%	$	136,294,338		$	111,693,035				$	24,601,303
Straight-Lining of Base Rents		5,211,965			5,098,086					113,879				85.8	%	93.6	%	-33.9	%		2,805,547			2,633,353					172,194
Percentage Rents		10,466,745			10,152,342					314,403				119.7	%	129.6	%	-8.2	%		4,765,061			4,422,624					342,437
Expense Reimbursables		127,206,265			120,840,398					6,365,867				118.9	%	145.9	%	-29.0	%		58,111,682			49,149,210					8,962,472
Lease Termination and Other Income		3,953,472			3,953,472					—				279.7	%	283.8	%	-100.0	%		1,041,180			1,030,185					10,995
Other Real Estate Revenues		13,232,355			12,535,331					697,024				104.1	%	133.2	%	-37.1	%		6,483,565			5,375,879					1,107,686

TOTAL REVENUES		446,510,331			418,017,227		94	%		28,493,104		6	%	113.1	%	139.8	%	-19.0	%		209,501,373			174,304,286		83	%		35,197,087		17	%

R.E. OPERATING EXPENSES
Operating and Maintenance		126,577,196			120,251,829					6,325,367				130.6	%	165.6	%	-34.2	%		54,901,077			45,283,494					9,617,583
Real Estate Taxes		39,888,301			37,424,508					2,463,793				110.4	%	134.5	%	-17.8	%		18,957,900			15,960,853					2,997,047

Total Operating Expenses		166,465,497			157,676,337		95	%		8,789,160		5	%	125.4	%	157.5	%	-30.3	%		73,858,977			61,244,347		83	%		12,614,630		17	%

NET OPERATING INCOME		280,044,834			260,340,890		93	%		19,703,944		7	%	106.5	%	130.3	%	-12.7	%		135,642,396			113,059,939		83	%		22,582,457		17	%

OTHER INCOME (EXP.)
Interest Expense		(76,361,502	)		(68,044,863	)				(8,316,639	)			94.6	%	140.4	%	-24.0	%		(39,240,910	)		(28,300,865	)				(10,940,045	)
Depreciation & Amortization		(102,110,509	)		(96,329,623	)				(5,780,886	)			140.1	%	156.2	%	17.4	%		(42,527,119	)		(37,601,957	)				(4,925,162	)

TOTAL OTHER INCOME (EXP.)		(178,472,011	)		(164,374,486	)				(14,097,525	)			118.3	%	149.4	%	-11.1	%		(81,768,029	)		(65,902,822	)				(15,865,207	)

Gains (loss) on sales of int. in R.E		1,484,182			—					1,484,182				N/A		N/A		N/A			1,111,692			1,111,692					—

Income before Minority Int.		103,057,005			95,966,404					7,090,601				87.4	%	98.8	%	5.6	%		54,986,059			48,268,809					6,717,250

Minority Interest in Properties		(629,599	)		(629,599	)								-27.2	%	-27.2	%	N/A			(864,465	)		(864,465	)				—

Discontinued Operations:										—											—

Income from Disposed Real Estate		—								—				N/A		N/A		N/A			—

Gain (loss) on Disposition of Discontinued Operations		—			—					—				N/A		N/A		N/A

TOTAL DISCONTINUED OPERATIONS		—			—									N/A		N/A		N/A			—			—					—

NET INCOME	$	102,427,406		$	95,336,805		93	%	$	7,090,601		7	%	89.3	%	101.1	%	5.6	%	$	54,121,594		$	47,404,344		88	%	$	6,717,250		12	%

SAME STORE COMPARISON


	CY 2004 (12 months ended 12/31/04)																									CY 2003 (12 months ended 12/31/03)
	Combined TOTAL			SAME					NEW					REDEV					DIVEST					% Change Same Store		Combined TOTAL			SAME					NEW					REDEV					DIVEST
Base Rents	$	286,439,529		$	63,177,441				$	202,286,816				$	9,029,126				$	11,946,146				3.2	%	$	136,294,338		$	61,196,364				$	63,236,686				$	9,137,631				$	2,723,658
Straight-Lining of Base Rents		5,211,965			675,859					4,302,005					64,606					169,496				-28.7	%		2,805,547			947,759					1,634,595					206,919					16,274
Percentage Rents		10,466,745			1,646,758					8,025,703					521,211					273,074				-4.2	%		4,765,061			1,719,278					2,471,218					431,401					143,164
Expense Reimbursables		127,206,265			17,473,584					99,920,551					5,017,200					4,794,931				-1.6	%		58,079,991			17,760,358					35,259,842					4,002,997					1,056,794
Lease Termination		3,953,472			1,659,000					2,242,257					52,215					—				370.6	%		1,041,180			352,500					643,124					—					45,556
Other Real Estate Revenues		13,232,355			1,700,774					10,328,007					733,002					470,573				-10.5	%		6,515,256			1,900,830					3,785,805					664,624					163,997

TOTAL REVENUES		446,510,331			86,333,414		19	%		327,105,337		73	%		15,417,360		3	%		17,654,220		4	%	2.9	%		209,501,373			83,877,089		40	%		107,031,270		51	%		14,443,572		7	%		4,149,443

R.E. OPERATING EXPENSES
Operating and Maintenance		126,577,196			16,916,184					96,536,291					4,464,847					8,659,874				-0.5	%		54,901,077			16,998,189					32,577,903					3,977,806					1,347,179
Real Estate Taxes		39,888,301			6,847,678					30,326,324					984,307					1,729,992				5.1	%		18,957,900			6,516,475					10,943,244					1,098,785					399,396

Total Operating Expenses		166,465,497			23,763,862		14	%		126,862,615		76	%		5,449,154		3	%		10,389,866		6	%	1.1	%		73,858,977			23,514,664		32	%		43,521,147		59	%		5,076,591		7	%		1,746,575

NET OPERATING INCOME		280,044,834			62,569,552		22	%		200,242,722		72	%		9,968,206		4	%		7,264,354		3	%	3.7	%		135,642,396			60,362,425		45	%		63,510,123		47	%		9,366,981		7	%		2,402,868

OTHER INCOME (EXP.)
Interest Expense		(76,361,502	)		(18,813,983	)				(52,836,422	)				(3,087,948	)				(1,623,149	)			7.6	%		(39,240,910	)		(17,481,657	)				(18,350,355	)				(3,116,600	)				(292,298	)
Depreciation & Amortization		(102,110,509	)		(20,554,608	)				(79,207,900	)				(2,198,986	)				(149,015	)			9.4	%		(42,527,119	)		(18,796,618	)				(20,803,890	)				(2,701,628	)				(224,984	)

TOTAL OTHER INCOME (EXP.)		(178,472,011	)		(39,368,591	)				(132,044,322	)				(5,286,934	)				(1,772,164	)			8.5	%		(81,768,029	)		(36,278,275	)				(39,154,245	)				(5,818,228	)				(517,282	)

Gain (loss) on sales of int. in R.E.		1,484,182			—					—					—					1,484,182				N/A			1,111,692								—					1,111,692

Income before Minority Int.		103,057,005			23,200,961					68,198,400					4,681,272					6,976,372				-3.7	%		54,986,059			24,084,150					24,355,878					4,660,445					1,885,586

Minority Interest in Properties		(629,599	)							(611,173	)									(18,426	)			N/A			(864,465	)		—					(858,006	)				—					(6,459	)
Discontinued Operations:
Income from Disposed Real Estate		—			—					—					—					—				N/A						—					—					—					—
Gain (loss) on Disposition of Discontinued Operations		—			—					—					—					—				N/A

TOTAL DISCONTINUED OPERATIONS		—			—																			N/A			—

NET INCOME	$	102,427,406		$	23,200,961		23	%	$	67,587,227		66	%	$	4,681,272		5	%	$	6,957,946		7	%	-3.7	%	$	54,121,594		$	24,084,150		45	%	$	23,497,872		43	%	$	4,660,445		9	%	$	1,879,127

⁽¹⁾

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 44.

PAGE 12

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

RETAIL INCOME STATEMENT ⁽¹⁾

QUARTERLY COMPARISON

(Property Subtype)


	Q4 04 (3 months ended 12/31/04)
	Combined TOTAL			Enclosed Mall					Power Center					Strip Center					% Change TOTAL		% Change Enclosed Mall
R.E. OPERATING REVENUES
Base Rents	$	75,011,376		$	66,906,929				$	6,599,390				$	1,505,057				33.5	%	39.5	%
Straight-Lining of Base Rents		1,374,762			1,237,977					130,283					6,502				30.3	%	34.0	%
Percentage Rents		4,745,172			4,651,465					93,707					—				35.9	%	36.4	%
Expense Reimbursables		29,649,040			28,151,637					1,172,233					325,170				20.4	%	23.3	%
Lease Termination and Other Income		1,252,868			1,252,868					—					—				68.3	%	88.2	%
Other Real Estate Revenues		6,201,755			6,161,938					39,691					126				56.2	%	56.4	%

TOTAL REVENUES		118,234,973			108,362,814		92	%		8,035,304		7	%		1,836,855		2	%	31.3	%	35.9	%

R.E. OPERATING EXPENSES
Operating and Maintenance		31,877,582			30,644,863					841,413					391,306				33.3	%	34.1	%
Real Estate Taxes		9,607,260			8,522,519					878,308					206,433				24.8	%	26.1	%

Total Operating Expenses		41,484,842			39,167,382		94	%		1,719,721		4	%		597,739		1	%	31.2	%	32.3	%

NET OPERATING INCOME		76,750,131			69,195,432		90	%		6,315,583		8	%		1,239,116		2	%	31.3	%	38.0	%

OTHER INCOME (EXP.)
Interest Expense		(18,963,921	)		(17,047,358	)				(1,880,695	)				(35,868	)			24.0	%	25.4	%
Depreciation & Amortization		(27,095,719	)		(23,111,852	)				(3,500,242	)				(483,625	)			41.2	%	37.0	%

TOTAL OTHER INCOME (EXP.)		(46,059,640	)		(40,159,210	)				(5,380,937	)				(519,493	)			33.6	%	31.8	%

Gains (loss) on sales of int. in R.E.		(45,001	)		—					—					(45,001	)			N/A		N/A

Income before Minority Int.		30,645,490			29,036,222					934,646					674,622				27.9	%	47.6	%

Minority Interest in Properties		(64,900	)		(64,900	)				—					—				-81.3	%	-81.3	%

Discontinued Operations:
Income from Disposed Real Estate		—			—					—									N/A		N/A

Gain (loss) on Disposition of Discontinued Operations		—																	N/A		N/A

TOTAL DISCONTINUED OPERATIONS		—			—					—					—				N/A		N/A

NET INCOME	$	30,580,590		$	28,971,322		95	%	$	934,646		3	%	$	674,622		2	%	29.5	%	49.9	%


					Q4 03 (3 months ended 12/31/03)
	% Change Power Center		% Change Strip Center		Combined TOTAL			Enclosed Mall					Power Center					Strip Center
R.E. OPERATING REVENUES
Base Rents	-0.9	%	-1.9	%	$	56,172,818		$	47,978,472				$	6,660,878				$	1,533,468
Straight-Lining of Base Rents	-3.0	%	-351.9	%		1,055,305			923,572					134,314					(2,581	)
Percentage Rents	17.7	%	N/A			3,490,813			3,411,217					79,596					—
Expense Reimbursables	-8.1	%	-36.9	%		24,620,341			22,829,880					1,275,181					515,280
Lease Termination and Other Income	-100.0	%	N/A			744,306			665,556					78,750					—
Other Real Estate Revenues	49.3	%	-97.7	%		3,970,963			3,938,923					26,588					5,452

TOTAL REVENUES	-2.7	%	-10.5	%		90,054,546			79,747,620		89	%		8,255,307		9	%		2,051,619		2	%

R.E. OPERATING EXPENSES
Operating and Maintenance	12.7	%	20.8	%		23,918,556			22,848,120					746,445					323,991
Real Estate Taxes	20.3	%	-0.2	%		7,695,695			6,759,060					729,862					206,773

Total Operating Expenses	16.5	%	12.6	%		31,614,251			29,607,180		94	%		1,476,307		5	%		530,764		2	%

NET OPERATING INCOME	-6.8	%	-18.5	%		58,440,295			50,140,440		86	%		6,779,000		12	%		1,520,855		3	%

OTHER INCOME (EXP.)
Interest Expense	12.7	%	-3.1	%		(15,298,177	)		(13,592,812	)				(1,668,332	)				(37,033	)
Depreciation & Amortization	85.7	%	12.2	%		(19,185,241	)		(16,869,089	)				(1,885,239	)				(430,913	)

TOTAL OTHER INCOME (EXP.)	51.4	%	11.0	%		(34,483,418	)		(30,461,901	)				(3,553,571	)				(467,946	)

Gains (loss) on sales of int. in R.E.	N/A		N/A			—			—					—					—

Income before Minority Int.	-71.0	%	-35.9	%		23,956,877			19,678,539					3,225,429					1,052,909

Minority Interest in Properties	N/A		N/A			(346,548	)		(346,548	)				—					—

Discontinued Operations:
Income from Disposed Real Estate	N/A		N/A			—			—					—

Gain (loss) on Disposition of Discontinued Operations	N/A		N/A

TOTAL DISCONTINUED OPERATIONS	N/A		N/A			—			—					—					—

NET INCOME	-71.0	%	-35.9	%	$	23,610,329		$	19,331,991		82	%	$	3,225,429		14	%	$	1,052,909		4	%

SAME STORE COMPARISON


	Q4 04 (3 months ended 12/31/04)
	Combined TOTAL			Enclosed Mall					Power Center					Strip Center					% Change TOTAL⁽¹⁾		% Change Enclosed Mall
R.E. OPERATING REVENUES
Base Rents	$	36,915,496		$	28,811,049				$	6,599,390				$	1,505,057				0.9	%	1.0	%
Straight-Lining of Base Rents		561,656			424,871					130,283					6,502				-26.9	%	-33.1	%
Percentage Rents		1,576,657			1,482,950					93,707					—				6.1	%	5.4	%
Expense Reimbursables		15,152,942			13,655,539					1,172,233					325,170				-11.9	%	-11.6	%
Lease Termination		699,995			699,995					—					—				0.2	%	12.9	%
Other Real Estate Revenues		3,072,759			3,032,942					39,691					126				24.4	%	24.4	%

TOTAL REVENUES		57,979,504			48,107,345		83	%		8,035,304		14	%		1,836,855		3	%	-2.1	%	-2.0	%

R.E. OPERATING EXPENSES
Operating and Maintenance		14,468,131			13,235,412					841,413					391,306				-7.0	%	-8.9	%
Real Estate Taxes		5,178,489			4,093,748					878,308					206,433				-5.0	%	-9.7	%

Total Operating Expenses		19,646,620			17,329,160		88	%		1,719,721		9	%		597,739		3	%	-6.5	%	-9.1	%

NET OPERATING INCOME		38,332,884			30,778,185		80	%		6,315,583		16	%		1,239,116		3	%	0.4	%	2.5	%

OTHER INCOME (EXP.)
Interest Expense		(10,414,388	)		(8,497,825	)				(1,880,695	)				(35,868	)			0.2	%	-2.2	%
Depreciation & Amortization		(12,693,909	)		(8,710,042	)				(3,500,242	)				(483,625	)			5.1	%	-11.3	%

TOTAL OTHER INCOME (EXP.)		(23,108,297	)		(17,207,867	)				(5,380,937	)				(519,493	)			2.8	%	-7.0	%

Gain (loss) on sales of int. in R.E		—			—					—					—				N/A		N/A

Income before Minority Int.		15,224,588			13,570,319					934,646					719,623				-3.2	%	17.9	%

Minority Interest in Properties		—			—					—					—

NET INCOME	$	15,224,588		$	13,570,319		89	%	$	934,646		6	%	$	719,623		5	%	-1.2	%	21.2	%


					Q4 03 (3 months ended 12/31/03)
	% Change Power Center		% Change Strip Center		Combined TOTAL			Enclosed Mall					Power Center					Strip Center
R.E. OPERATING REVENUES
Base Rents	-0.9	%	8.3	%	$	36,579,163		$	28,527,975				$	6,660,878				$	1,390,310
Straight-Lining of Base Rents	-3.0	%	-872.2	%		768,470			634,998					134,314					(842	)
Percentage Rents	17.7	%	N/A			1,485,956			1,406,360					79,596					—
Expense Reimbursables	-8.1	%	-31.4	%		17,195,218			15,446,004					1,275,181					474,033
Lease Termination	-100.0	%	N/A			698,750			620,000					78,750					—
Other Real Estate Revenues	49.3	%	-97.7	%		2,470,148			2,438,108					26,588					5,452

TOTAL REVENUES	-2.7	%	-1.7	%		59,197,705			49,073,445		83	%		8,255,307		14	%		1,868,953		3	%

R.E. OPERATING EXPENSES
Operating and Maintenance	12.7	%	38.1	%		15,553,266			14,523,488					746,445					283,333
Real Estate Taxes	20.3	%	10.5	%		5,450,011			4,533,405					729,862					186,744

Total Operating Expenses	16.5	%	27.2	%		21,003,277			19,056,893		91	%		1,476,307		7	%		470,077		2	%

NET OPERATING INCOME	-6.8	%	-11.4	%		38,194,428			30,016,552		79	%		6,779,000		18	%		1,398,876		4	%

OTHER INCOME (EXP.)
Interest Expense	12.7	%	-3.1	%		(10,394,492	)		(8,689,127	)				(1,668,332	)				(37,033	)
Depreciation & Amortization	85.7	%	28.9	%		(12,077,879	)		(9,817,582	)				(1,885,239	)				(375,058	)

TOTAL OTHER INCOME (EXP.)	51.4	%	26.1	%		(22,472,371	)		(18,506,709	)				(3,553,571	)				(412,091	)

						—								—					—

Gain (loss) on sales of int. in R.E	N/A		N/A			—			—					—					—

Income before Minority Int.	-71.0	%	-27.1	%		15,722,057			11,509,843					3,225,429					986,785

Minority Interest in Properties						(310,751	)		(310,751	)

NET INCOME	-71.0	%	-27.1	%	$	15,411,306		$	11,199,092		73	%	$	3,225,429		21	%	$	986,785		6	%

⁽¹⁾

Includes PREIT’s percent of partnership investments that is “grossed up” to reflect the Company’s share of the Total Assets and Liabilities of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments.

PAGE 13

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

RETAIL INCOME STATEMENT ⁽¹⁾

YEARLY COMPARISON

(Property Subtype)


	CY 2004 (12 months ended 12/31/04)
	Combined TOTAL			Enclosed Mall					Power Center					Strip Center					% Change TOTAL		% Change Enclosed Mall
R.E. OPERATING REVENUES
Base Rents	$	286,439,529		$	253,572,093				$	26,654,346				$	6,213,090				110.2	%	143.7	%
Straight-Lining of Base Rents		5,211,965			4,682,948					527,250					1,767				85.8	%	129.6	%
Percentage Rents		10,466,745			10,229,271					237,474					—				119.7	%	128.3	%
Expense Reimbursables		127,206,265			120,577,407					4,991,385					1,637,473				118.9	%	135.5	%
Lease Termination and Other Income		3,953,472			2,453,472					1,500,000					—				279.7	%	215.1	%
Other Real Estate Revenues		13,232,355			13,088,855					131,184					12,316				104.1	%	106.2	%

TOTAL REVENUES		446,510,331			404,604,046		91	%		34,041,639		8	%		7,864,646		2	%	113.1	%	139.6	%

R.E. OPERATING EXPENSES
Operating and Maintenance		126,577,196			121,646,929					3,420,567					1,509,700				130.6	%	142.3	%
Real Estate Taxes		39,888,301			35,917,178					3,152,245					818,878				110.4	%	136.5	%

Total Operating Expenses		166,465,497			157,564,107		95	%		6,572,812		4	%		2,328,578		1	%	125.4	%	141.0	%

NET OPERATING INCOME		280,044,834			247,039,939		88	%		27,468,827		10	%		5,536,068		2	%	106.5	%	138.7	%

OTHER INCOME (EXP.)
Interest Expense		(76,361,502	)		(69,354,061	)				(6,862,161	)				(145,280	)			94.6	%	114.3	%
Depreciation & Amortization		(102,110,509	)		(90,387,057	)				(9,479,496	)				(2,243,956	)			140.1	%	172.2	%

TOTAL OTHER INCOME (EXP.)		(178,472,011	)		(159,741,118	)				(16,341,657	)				(2,389,236	)			118.3	%	143.6	%

Gains (loss) on sales of int. in R.E.		1,484,182			—					—					1,484,182				N/A		N/A

Income before Minority Int.		103,057,005			87,298,821					11,127,170					4,631,014				87.4	%	130.2	%

Minority Interest in Properties		(629,599	)		(629,599	)				—					—				-27.2	%	-27.2	%

Discontinued Operations:
Income from Disposed Real Estate		—			—					—									N/A		N/A

Gain (loss) on Disposition of Discontinued Operations		—																	N/A		N/A

TOTAL DISCONTINUED OPERATIONS		—			—					—					—				N/A		N/A

NET INCOME	$	102,427,406		$	86,669,222		85	%	$	11,127,170		11	%	$	4,631,014		5	%	89.3	%	133.9	%


					CY 2003 (12 months ended 12/31/03)
	% Change Power Center		% Change Strip Center		Combined TOTAL			Enclosed Mall					Power Center					Strip Center
R.E. OPERATING REVENUES
Base Rents	1.8	%	2.4	%	$	136,294,338		$	104,036,806				$	26,189,828				$	6,067,704
Straight-Lining of Base Rents	-18.2	%	-98.5	%		2,805,547			2,039,421					644,281					121,845
Percentage Rents	-16.3	%	N/A			4,765,061			4,479,817					283,594					1,650
Expense Reimbursables	-0.6	%	-13.9	%		58,111,682			51,189,818					5,020,176					1,901,688
Lease Termination and Other Income	471.4	%	N/A			1,041,180			778,680					262,500					—
Other Real Estate Revenues	14.3	%	-44.7	%		6,483,565			6,346,516					114,760					22,289

TOTAL REVENUES	4.7	%	-3.1	%		209,501,373			168,871,058		81	%		32,515,139		16	%		8,115,176		4	%

R.E. OPERATING EXPENSES
Operating and Maintenance	1.6	%	13.5	%		54,901,077			50,202,470					3,367,908					1,330,699
Real Estate Taxes	5.7	%	4.1	%		18,957,900			15,189,118					2,982,280					786,502

Total Operating Expenses	3.5	%	10.0	%		73,858,977			65,391,588		89	%		6,350,188		9	%		2,117,201		3	%

NET OPERATING INCOME	5.0	%	-7.7	%		135,642,396			103,479,470		76	%		26,164,951		19	%		5,997,975		4	%

OTHER INCOME (EXP.)
Interest Expense	1.9	%	-3.0	%		(39,240,910	)		(32,356,067	)				(6,735,066	)				(149,777	)
Depreciation & Amortization	24.6	%	31.2	%		(42,527,119	)		(33,206,631	)				(7,609,792	)				(1,710,696	)

TOTAL OTHER INCOME (EXP.)	13.9	%	28.4	%		(81,768,029	)		(65,562,698	)				(14,344,858	)				(1,860,473	)

Gains (loss) on sales of int. in R.E.	N/A		N/A			1,111,692			—					—					1,111,692

Income before Minority Int.	-5.9	%	-11.8	%		54,986,059			37,916,772					11,820,093					5,249,194

Minority Interest in Properties	N/A		N/A			(864,465	)		(864,465	)				—					—

Discontinued Operations:
Income from Disposed Real Estate	N/A		N/A			—			—					—

Gain (loss) on Disposition of Discontinued Operations	N/A		N/A

TOTAL DISCONTINUED OPERATIONS	N/A		N/A			—			—					—					—

NET INCOME	-5.9	%	-11.8	%	$	54,121,594		$	37,052,307		68	%	$	11,820,093		22	%	$	5,249,194		10	%

SAME STORE COMPARISON


	CY 2004 (12 months ended 12/31/04)
	Combined TOTAL			Enclosed Mall					Power Center					Strip Center					% Change TOTAL⁽¹⁾		% Change Enclosed Mall
R.E. OPERATING REVENUES
Base Rents	$	63,177,441		$	31,657,483				$	26,654,346				$	4,865,612				3.2	%	4.8	%
Straight-Lining of Base Rents		675,859			156,367					527,250					(7,758	)			-28.7	%	-44.7	%
Percentage Rents		1,646,758			1,409,284					237,474					—				-4.2	%	-1.7	%
Expense Reimbursables		17,473,584			11,246,874					4,991,385					1,235,325				-1.6	%	-1.2	%
Lease Termination		1,659,000			159,000					1,500,000					—				370.6	%	76.7	%
Other Real Estate Revenues		1,700,774			1,559,642					131,184					9,948				-10.5	%	-11.6	%

TOTAL REVENUES		86,333,414			46,188,648		54	%		34,041,639		39	%		6,103,127		7	%	2.9	%	2.3	%

R.E. OPERATING EXPENSES
Operating and Maintenance		16,916,184			12,407,424					3,420,567					1,088,193				-0.5	%	-2.4	%
Real Estate Taxes		6,847,678			3,153,479					3,152,245					541,954				5.1	%	4.5	%

Total Operating Expenses		23,763,862			15,560,903		65	%		6,572,812		28	%		1,630,147		7	%	1.1	%	-1.1	%

NET OPERATING INCOME		62,569,552			30,627,745		49	%		27,468,827		44	%		4,472,980		7	%	3.7	%	4.0	%

OTHER INCOME (EXP.)
Interest Expense		(18,813,983	)		(11,806,542	)				(6,862,161	)				(145,280	)			7.6	%	11.4	%
Depreciation & Amortization		(20,554,608	)		(9,816,450	)				(9,479,496	)				(1,258,662	)			9.4	%	-1.0	%

TOTAL OTHER INCOME (EXP.)		(39,368,591	)		(21,622,992	)				(16,341,657	)				(1,403,942	)			8.5	%	5.4	%

Gain (loss) on sales of int. in R.E		—			—					—					—				N/A		N/A

Income before Minority Int.		23,200,961			9,004,753					11,127,170					3,069,038				-3.7	%	0.9	%

Minority Interest in Properties		—			—					—					—

NET INCOME	$	23,200,961		$	9,004,753		39	%	$	11,127,170		48	%	$	3,069,038		13	%	-3.7	%	0.9	%


					CY 2003 (12 months ended 12/31/03)
	% Change Power Center		% Change Strip Center		Combined TOTAL			Enclosed Mall					Power Center					Strip Center
R.E. OPERATING REVENUES
Base Rents	1.8	%	1.5	%	$	61,196,364		$	30,215,021				$	26,189,828				$	4,791,515
Straight-Lining of Base Rents	-18.2	%	-137.3	%		947,759			282,699					644,281					20,779
Percentage Rents	-16.3	%	N/A			1,719,278			1,434,034					283,594					1,650
Expense Reimbursables	-0.6	%	-9.0	%		17,760,358			11,382,526					5,020,176					1,357,656
Lease Termination	471.4	%	N/A			352,500			90,000					262,500					—
Other Real Estate Revenues	14.3	%	-55.4	%		1,900,830			1,763,790					114,760					22,280

TOTAL REVENUES	4.7	%	-1.5	%		83,877,089			45,168,070		54	%		32,515,139		39	%		6,193,880		7	%

R.E. OPERATING EXPENSES
Operating and Maintenance	1.6	%	18.7	%		16,998,189			12,713,152					3,367,908					917,129
Real Estate Taxes	5.7	%	5.2	%		6,516,475			3,018,793					2,982,280					515,402

Total Operating Expenses	3.5	%	13.8	%		23,514,664			15,731,945		67	%		6,350,188		27	%		1,432,531		6	%

NET OPERATING INCOME	5.0	%	-6.1	%		60,362,425			29,436,125		49	%		26,164,951		43	%		4,761,349		8	%

OTHER INCOME (EXP.)
Interest Expense	1.9	%	-3.0	%		(17,481,657	)		(10,596,814	)				(6,735,066	)				(149,777	)
Depreciation & Amortization	24.6	%	-1.1	%		(18,796,618	)		(9,913,965	)				(7,609,792	)				(1,272,861	)

TOTAL OTHER INCOME (EXP.)	13.9	%	-1.3	%		(36,278,275	)		(20,510,779	)				(14,344,858	)				(1,422,638	)

						—			—					—					—

Gain (loss) on sales of int. in R.E	N/A		N/A			—			—					—					—

Income before Minority Int.	-5.9	%	-8.1	%		24,084,150			8,925,346					11,820,093					3,338,711

Minority Interest in Properties

NET INCOME	-5.9	%	-8.1	%	$	24,084,150		$	8,925,346		37	%	$	11,820,093		49	%	$	3,338,711		14	%

⁽¹⁾

PAGE 14

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)


	Q4:12/31/04			% Change		Q4:12/31/03			CY 2004			% Change		CY 2003
FUNDS FROM OPERATIONS ⁽¹⁾
Net Income	$	19,164,507		66.6	%	$	11,501,879		$	53,787,630		-72.6	%	$	196,040,151
Dividends on preferred shares		(3,403,125	)				(1,533,000	)		(13,612,500	)				(1,533,000	)

Net Income available to common shareholders	$	15,761,382		58.1	%	$	9,968,879		$	40,175,130		-79.3	%	$	194,507,151
Minority Interest in Operating Partnership-continuing operations		2,333,949		94.7	%		1,198,594			5,695,811		72.7	%		3,298,010
Minority Interest in Operating Partnership-discontinued operations		23,513		N/A			580,392			622,663		N/A			18,848,730
(Gain) losses on sales of interests in real estate		45,001		N/A			(4,457,176	)		(1,484,182	)	N/A			(16,199,310	)
(Gain) losses on disposition of discontinued operations		—		N/A			(194,441	)		550,000		N/A			(178,121,005	)
Depreciation & Amortization: ⁽²⁾
Wholly owned and consolidated partnerships		24,418,390		36.8	%		17,852,055			95,861,419		156.6	%		37,356,061
Unconsolidated partnerships		2,558,958		105.8	%		1,243,672			5,780,886		14.0	%		5,071,443
Discontinued operations		—		N/A			—			—		N/A			2,308,553

FFO	$	45,141,193		72.3	%	$	26,191,975		$	147,201,727		119.5	%	$	67,069,633

Weighted Average Shares and O.P. Units Outstanding		40,244,661		26.8	%		31,744,396			39,792,409		75.4	%		22,693,026

Net Income per Share (basic)	$	0.43		22.9	%	$	0.35		$	1.11		-88.4	%	$	9.54

FFO per Share	$	1.12		35.9	%	$	0.83		$	3.70		25.2	%	$	2.96

FUNDS AVAILABLE FOR DISTRIBUTION
FFO	$	45,141,193		72.3	%	$	26,191,975		$	147,201,727		119.5	%	$	67,069,633
Adjustments:
Straight-lining of base rents		(1,374,762	)	30.3	%		(1,055,305	)		(5,211,965	)	85.8	%		(2,805,547	)
Recurring capital expenditures		(3,989,314	)	354.9	%		(876,942	)		(8,905,629	)	311.8	%		(2,162,415	)
Tenant allowances		(9,164,115	)	N/A			(1,265,392	)		(11,660,288	)	N/A			(1,265,392	)
Amortization of debt premium		(4,811,196	)	64.0	%		(2,933,065	)		(19,353,621	)	225.8	%		(5,940,175	)
Amortization of above-and below - market lease intangibles		115,172		-31.0	%		167,000			707,192		74.8	%		404,462

FAD	$	25,916,978		28.1	%	$	20,228,271		$	102,777,416		85.9	%	$	55,300,566

Weighted Average Shares and O.P. Units Outstanding		40,244,661		26.8	%		31,744,396			39,792,409		75.4	%		22,693,026

FAD per Share	$	0.64		1.1	%	$	0.64		$	2.58		6.0	%	$	2.44

PAYOUT RATIOS
Dividend per Common Share	$	0.54		0.0	%	$	0.54		$	2.16		4.3	%	$	2.07

Payout Ratio of Net Income per Share (basic)		125.6	%	-28.7	%		154.3	%		194.6	%	172.9	%		21.7	%

Payout Ratio of FFO		48.1	%	-17.3	%		65.4	%		58.4	%	-11.6	%		70.0	%

Payout Ratio of FAD		83.9	%	-0.9	%		84.7	%		83.6	%	-1.3	%		84.9	%

⁽¹⁾	Certain prior period amounts have been reclassified to conform with the current period’s presentation.

⁽²⁾	Excludes depreciation of non-real estate assets and amortization of deferred financing costs.

PAGE 15

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

KEY RATIOS


	Q4: 12/31/2004		Q4: 12/31/2003
Coverage Ratio ⁽¹⁾
Interest Coverage Ratio (EBITDA/Interest Expense)	3.35		2.73
Leverage Ratios ⁽¹⁾
Debt / Total Market Capitalization	46.1	%	50.3	%
Operating Ratios ⁽¹⁾
NOI/Real Estate Revenues	64.9	%	64.9	%
Return on Investment Ratios ⁽¹⁾
Total FFO/Equity Market Capitalization, net of preferred shares	2.6	%	1.8	%
FFO multiple (Closing share price / Annualized FFO per share for quarter) ⁽²⁾	9.54		11.00
NOI/Total Market Capitalization at Period End	2.2	%	1.9	%
NOI/Investment in Real Estate at Period End	2.9	%	2.3	%
Payout Ratios
FFO Payout Ratio (Dividend/FFO) per Share	48.1	%	65.4	%
FAD Payout Ratio (Dividend/FAD) per Share	83.9	%	84.7	%

⁽¹⁾	The calculation of these ratios includes wholly owned properties, PREIT's proportional share of partnership properties and properties classified as held for sale.

⁽²⁾	Calculations based on closing stock price at the end of the quarter.

PAGE 16

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

DEBT SCHEDULE of WHOLLY OWNED PROPERTIES


Property Name	PREIT’s Ownership Interest		Total Investment to Date		PREIT’s Investment to Date ⁽¹⁾		PREIT’s Accumulated Depreciation		PREIT’s Depreciated Costs		PREIT’s Share of O/S Mortgage Debt and Mortgage Debt Premium		PREIT’s Share of Mortgage		PREIT’s Share of Mortgage Debt Premium		Current Mortgages Interest Rate		Annual Mortgage Debt Service		Mortgage Balance at Maturity		Date of Maturity		Notes
Retail Properties
Beaver Valley Mall	100	%	$	56,193,609	$	56,193,609	$	4,290,282	$	51,903,327	$	46,869,232	$	46,869,232	$	—	7.36	%	$	3,972,402	$	42,265,601	2012
Capital City ⁽²⁾	100	%		81,155,707		81,155,707		2,387,771		78,767,936		58,914,950		52,786,545		6,128,405	7.61	%		4,602,529		47,215,150	2012
Chambersburg Mall ⁽²⁾⁽³⁾	89	%		34,503,338		34,503,338		1,077,578		33,425,760		20,256,122		18,724,588		1,531,534	7.43	%		1,762,666		17,199,298	2008
Cherry Hill Mall ⁽⁴⁾	100	%		204,720,979		204,720,979		8,280,309		196,440,670		74,502,944		71,319,187		2,796,256	10.60	%		9,132,792		70,237,549	2005
												58,482,412		58,869,913		—	5.00	%		3,889,582		58,148,407	2005	⁽⁵⁾
Christiana Power I	100	%		39,949,871		39,949,871		5,476,618		34,473,253		—		—		—	0.00	%		—		—
Creekview	100	%		19,073,962		19,073,962		2,857,064		16,216,898		—		—		—	0.00	%		—		—
Crest Plaza Shopping Center	100	%		16,799,686		16,799,686		1,819,226		14,980,460		—		—		—	0.00	%		—		—
Crossroads Mall	100	%		31,552,658		31,552,658		1,202,897		30,349,761		14,085,354		13,395,840		689,514	7.39	%		1,191,103		12,646,534	2008
Dartmouth Mall	100	%		57,560,174		57,560,174		11,179,741		46,380,433		68,424,518		68,424,518		—	4.95	%		4,483,668		57,594,279	2013
Echelon Mall	100	%		17,499,150		17,499,150		1,938,278		15,560,872		—		—		—	0.00	%
Exton Square Mall ⁽⁴⁾	100	%		143,652,608		143,652,608		6,318,157		137,334,451		104,991,154		98,528,771		6,462,383	6.95	%		8,102,242		93,034,212	2008
Festival at Exton	100	%		19,052,431		19,052,431		2,563,648		16,488,783		—		—		—	0.00	%		—		—
Francis Scott Key Mall ⁽³⁾	89	%		61,086,566		61,086,566		1,871,523		59,215,043		35,448,213		32,768,029		2,680,184	7.43	%		3,084,665		30,098,771	2008
Jacksonville Mall ⁽³⁾	100	%		66,546,888		66,546,888		2,163,623		64,383,265		27,345,766		25,278,194		2,067,572	7.43	%		2,379,598		23,219,052	2008
Logan Valley Mall ⁽²⁾⁽³⁾	100	%		91,087,683		91,087,683		3,274,077		87,813,606		57,729,947		53,365,075		4,364,872	7.43	%		5,023,597		49,017,998	2008
Lycoming Mall ⁽²⁾⁽³⁾	89	%		55,384,351		55,384,351		1,675,052		53,709,299		35,448,214		32,768,029		2,680,185	7.43	%		3,084,664		30,098,771	2008
Magnolia Mall	100	%		58,526,217		58,526,217		9,292,737		49,233,480		19,878,288		19,878,288		—	8.20	%		2,597,726		17,782,882	2007
Moorestown Mall	100	%		75,146,528		75,146,528		5,082,070		70,064,458		62,803,933		62,803,933		—	4.95	%		4,115,367		52,863,321	2013
New River Valley Mall ⁽³⁾	89	%		30,178,562		30,178,562		973,802		29,204,760		17,217,704		15,915,900		1,301,804	7.43	%		1,498,266		14,619,403	2008
Nittany Mall ⁽²⁾⁽³⁾	89	%		39,032,489		39,032,489		1,132,817		37,899,672		30,384,183		28,086,882		2,297,301	7.43	%		2,643,998		25,798,946	2008
North Hanover Mall ⁽²⁾⁽³⁾	89	%		28,284,491		28,284,491		934,407		27,350,084		20,256,122		18,724,588		1,531,534	7.43	%		1,762,666		17,199,298	2008
Northeast Tower Center ⁽³⁾	100	%		32,658,548		32,658,548		3,379,269		29,279,279		17,724,107		16,384,015		1,340,092	7.43	%		1,542,332		15,049,385	2008
Northeast Tower Center-Home Depot	100	%		13,578,891		13,578,891		1,561,573		12,017,318		12,500,000		12,500,000		—	7.40	%		925,000		12,500,000	2005
Orlando Fashion Square	100	%		108,469,969		108,469,969		235,005		108,234,964		—		—		—	0.00	%		—		—	—
Palmer Park Mall	100	%		32,520,927		32,520,927		6,672,124		25,848,803		17,733,788		17,733,788		—	6.77	%		1,661,220		15,674,394	2009
Patrick Henry Mall ⁽³⁾	89	%		106,945,323		106,945,323		3,072,804		103,872,519		51,146,710		47,279,585		3,867,125	7.43	%		4,450,730		43,428,226	2008
Paxton Towne Centre	100	%		53,517,227		53,517,227		6,026,399		47,490,828		—		—		—	0.00	%		—		—	—
Phillipsburg Mall ⁽³⁾	89	%		48,711,968		48,711,968		1,528,810		47,183,158		30,384,183		28,086,882		2,297,301	7.43	%		2,643,998		25,798,946	2008
Plymouth Meeting Mall	100	%		79,328,714		79,328,714		3,999,975		75,328,739		—		—		—	0.00	%		—		—	—
Schuylkill Mall ⁽²⁾⁽⁶⁾	100	%		8,108,061		8,108,061		—		8,108,061		17,399,761		17,399,761		—	7.25	%		N/A		N/A	2008
South Blanding Village	100	%		9,502,950		9,502,950		3,394,474		6,108,476		—		—		—	0.00	%		—		—	—
South Mall ⁽²⁾⁽³⁾	89	%		26,994,360		26,994,360		862,538		26,131,822		15,192,091		14,043,441		1,148,650	7.43	%		1,321,999		12,899,473	2008
The Commons at Magnolia	100	%		9,900,319		9,900,319		1,378,520		8,521,799		—		—		—	0.00	%		—		—	—
The Gallery at Market East I	100	%		48,365,381		48,365,381		2,132,987		46,232,394		—		—		—	0.00	%		—		—	—
The Gallery at Market East II	100	%		28,082,094		28,082,094		446,068		27,636,026		—		—		—	0.00	%		—		—	—
The Mall at Prince Georges ⁽⁴⁾	100	%		92,556,803		92,556,803		12,685,863		79,870,940		42,820,615		41,350,053		1,470,562	8.70	%		4,134,937		39,986,536	2007
Uniontown Mall ⁽²⁾⁽³⁾	89	%		34,398,654		34,398,654		1,183,242		33,215,412		24,307,347		22,469,506		1,837,841	7.43	%		2,115,199		20,639,157	2008
Valley Mall	100	%		85,892,271		85,892,271		3,107,983		82,784,288		—		—		—	0.00	%		—		—	—
Valley View Mall	100	%		60,015,402		60,015,402		1,759,763		58,255,639		37,462,862		36,887,606		575,256	6.15	%		2,275,500		34,094,549	2009
Viewmont Mall ⁽²⁾⁽³⁾	89	%		76,522,861		76,522,861		2,134,091		74,388,770		30,384,183		28,086,882		2,297,301	7.43	%		2,643,998		25,798,946	2008
Washington Crown Center ⁽²⁾	89	%		42,498,769		42,498,769		2,156,955		40,341,814		—		—		—	0.00	%		—		—	—
Willow Grove Park	100	%		172,620,230		172,620,230		11,473,667		161,146,563		110,789,144		108,385,064		2,404,080	8.39	%		10,046,933		107,307,726	2006
Wiregrass Mall ⁽⁵⁾	100	%		37,425,141		37,425,141		1,236,296		36,188,845		—		—		—	0.00	%		—		—	—
Wyoming Valley Mall ⁽²⁾⁽³⁾	100	%		90,793,317		90,793,317		2,538,595		88,254,722		57,729,948		53,365,076		4,364,872	7.43	%		5,023,597		49,017,998	2008
Westgate Anchor Pad	100	%		2,920,710		2,920,710		—		2,920,710		—		—		—	0.00	%		—		—	—
Land held for development	100	%		9,862,704		9,862,704		—		9,862,704		—		—		—	0.00	%		—		—	—

Sub-Total Retail Properties			$	2,539,179,542	$	2,539,179,542	$	148,758,678	$	2,390,420,864	$	1,218,613,795	$	1,162,479,171	$	56,134,624	7.28	%	$	105,428,274	$	1,068,677,734

Industrial Properties
ARA Services, Allentown, PA	100	%	$	84,610	$	84,610	$	81,610	$	3,000	$	—	$	—	$	—	0.00	%	$	—	$	—	—
ARA Services, Pennsauken, NJ	100	%		210,473		210,473		170,661		39,812		—		—		—	0.00	%		—		—	—
Interstate Container Corporation	100	%		1,802,271		1,802,271		1,524,084		278,187		—		—		—	0.00	%		—		—	—
Sears Roebuck & Co.	100	%		406,857		406,857		350,576		56,281		—		—		—	0.00	%		—		—	—

Sub-Total Industrial and Land Properties			$	2,504,211	$	2,504,211	$	2,126,931	$	377,280	$	—	$	—	$	—	0.00	%	$	—	$	—

TOTAL for WHOLLY OWNED PROPERTIES			$	2,541,683,753	$	2,541,683,753	$	150,885,609	$	2,390,798,144	$	1,218,613,795	$	1,162,479,171	$	56,134,624	7.28	%	$	105,428,274	$	1,068,677,734

TOTAL for PARTNERSHIPS			$	271,058,816	$	133,886,288	$	34,023,363	$	99,862,925	$	107,513,205	$	107,513,205	$	—	7.47	%	$	10,205,588	$	93,753,089

CORPORATE /LINE OF CREDIT											$	271,000,000	$	271,000,000	$	—

TOTAL for WHOLLY OWNED and PARTNERSHIP PROPERTIES			$	2,812,742,569	$	2,675,570,041	$	184,908,972	$	2,490,661,069	$	1,597,127,000	$	1,540,992,376	$	56,134,624	7.30	%	$	115,633,862	$	1,162,430,823

⁽¹⁾	Includes development and CIP costs.

⁽²⁾	PREIT has an 89% ownership interest and a 99% economic interest in these properties. These properties are consolidated for financial reporting purposes.

⁽³⁾	Mortgage Debt represents the properties’ allocated portion of the REMIC provided by General Electric Capital Corporation

⁽⁴⁾	Mortgage term does not include two 12 month extensions.

⁽⁵⁾

On February 24, 2005, the Company fully repaid its obligations under a $59.0 million second mortgage by borrowing an additional $55.0 million under its unsecured revolving credit facility. After the borrowing on February 24, 2005, there was a total of $326.0 million outstanding under the Credit Facility.

⁽⁶⁾

In December 2004, the Company completed a modification of the mortgage on Schuylkill Mall. The modification limits the monthly payment to interest plus the excess cash flow from the property after management fees, leasing commissions, and lender-approved capital expenditures, Monthly excess cash flow will accumulate throughout the year in escrow, and an annual principal payment will be made on the last day of each year from this account. All other terms of the loan remained unchanged. Due to the modification, the timing of future principal payment amounts cannot be determined.

PAGE 17

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

DEBT SCHEDULE of PARTNERSHIPS


Property Name	PREIT’s Ownership Interest		Total Investment to Date		PREIT’s Investment to Date ⁽¹⁾		PREIT’s Accumulated Depreciation		PREIT’s Depreciated Costs		PREIT’s Share of O/S Mortgage Debt and Mortgage Debt Premium		PREIT’s Share of Mortgage		PREIT’s Share of Mortgage Debt Premium		Current Mortgages Interest Rate			Annual Mortgage Debt Service		Mortgage Balance at Maturity		Date of Maturity	Notes
Retail Properties
Court at Oxford Valley	50	%	$	55,643,890	$	27,821,945	$	4,947,908	$	22,874,037	$	21,237,630	$	21,237,630	$	—		8.02	%	$	2,319,426	$	15,966,965	2011
Laurel Mall	40	%		31,492,980		12,597,192		4,980,925		7,616,267		9,096,441		9,096,441		—		6.00	%		661,904		7,819,521	2013
Lehigh Valley Mall	50	%		32,922,356		16,461,178		9,734,259		6,726,919		23,045,280		23,045,280		—		7.90	%		2,479,260		21,750,440	2006
Metroplex Shopping Center (Blue Route)	50	%		83,905,440		41,952,720		6,029,757		35,922,963		31,809,386		31,809,386		—		7.25	%		2,680,953		28,250,000	2011
Red Rose Commons	50	%		23,883,374		11,941,687		1,658,540		10,283,147		13,627,598		13,627,598		—		7.66	%		1,220,048		12,425,422	2009
Springfield Park I&II	50	%		13,291,878		6,645,939		695,102		5,950,837		1,788,993		1,788,993		—		7.79	%		202,561		1,411,804	2010
Whitehall Mall	50	%		29,918,898		14,959,449		5,976,872		8,982,577		6,907,877		6,907,877		—		6.77	%		641,436		6,128,937	2008

Sub-Total Retail Properties			$	271,058,816	$	132,380,110	$	34,023,363	$	98,356,747	$	107,513,205	$	107,513,205	$	—		7.47	%	$	10,205,588	$	93,753,089

Construction in Progress/Development
Pavilion at Market East	50	%		N/A	$	1,506,178	$	—	$	1,506,178	$	—	$	—	$	—		0.00	%	$	—	$	—

Sub-Total Properties Under Development			$	—	$	1,506,178	$	—	$	1,506,178	$	—	$	—	$	—	$	—		$	—	$	—

TOTAL for PARTNERSHIPS			$	271,058,816	$	133,886,288	$	34,023,363	$	99,862,925	$	107,513,205	$	107,513,205	$	—		7.47	%	$	10,205,588	$	93,753,089

⁽¹⁾	Includes development and CIP costs.

PAGE 18

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

DEBT ANALYSIS

Outstanding Debt ⁽¹⁾


	Fixed Rate		% of Total Indebtedness		Floating Rate		% of Total Indebtedness		Total		% of Total Indebtedness
Wholly Owned
Mortgage Notes Payable	$	1,218,613,795	76.3	%	$	—	0.0	%	$	1,218,613,795	76.3	%
Revolving Line of Credit		—	0.0	%		—	0.0	%		—	0.0	%
*SUB-TOTAL*		1,218,613,795	*76.3*	%		—	*0.0*	%		1,218,613,795	*76.3*	%
Partnerships (at PREIT’s share)
Mortgage Notes Payable		107,513,205	6.7	%		—	0.0	%		107,513,205	6.7	%
Revolving Line of Credit		—	0.0	%		—	0.0	%		—	0.0	%
Construction loans payable		—	0.0	%		—	0.0	%		—	0.0	%

*SUB-TOTAL*		107,513,205	*6.7*	%		—	*0.0*	%		107,513,205	*6.7*	%
Corporate
Revolving Line of Credit			0.0	%		271,000,000	17.0	%		271,000,000	17.0	%

*SUB-TOTAL*			*0.0*	%		271,000,000	*17.0*	%		271,000,000	*17.0*	%
TOTAL OUTSTANDING DEBT		1,326,127,000				271,000,000				1,597,127,000
SWAP		—				—				—

TOTAL DEBT AFTER HEDGE	$	1,326,127,000	*83.0*	%	$	271,000,000	*17.0*	%	$	1,597,127,000	*100.0*	%

⁽¹⁾	Includes mark to market of debt.

LOGO

Weighted Average Interest Rates


	Principal Balance		Weighted Average Interest Rate
Fixed Rate Debt	$	1,269,992,376	7.30	%
Mortgage Debt Premium		56,134,624	N/A
Floating Rate Debt		271,000,000	3.93	%

TOTAL	$	1,597,127,000	6.70	%

Interest Rate Hedging Instruments

Nominal
Amount

Interest
Rate
Limit

Expiration
Date

Nominal
Amount

Fixed Rate in
Agreement

Floating
Rate in
Agreement

Expiration
Date

CAP

None

SWAP

None

Mortgage/Construction Maturity Schedule⁽¹⁾


Year	Mortgage Balance at Maturity		% of Debt Expiring		Cumulative % of Debt Expiring
2004	$	—	0.0	%	0.0	%
2005		140,885,956	12.2	%	12.2	%
2006		129,058,166	11.2	%	23.4	%
2007		57,769,418	5.0	%	28.4	%
2008		511,693,351	44.3	%	72.7	%
2009		62,194,365	5.4	%	78.1	%
2010		1,411,804	0.1	%	78.2	%
2011		44,216,965	3.8	%	82.0	%
2012		89,480,751	7.7	%	89.8	%
2013		118,277,121	10.2	%	100.0	%
Thereafter		—	0.0	%	100.0	%

	$	1,154,987,898	100.0	%

⁽¹⁾	The average period to mortgage maturity is 4.3 years.

Average Debt Balance


		Mortgage Debt ⁽¹⁾ & Construction Loans			Line of Credit & Bank Loans		REMIC			TOTAL
Beginning Balance	9/30/2004	$	890,617,112		$	112,000,000	$	475,473,130		$	1,478,090,334
Pay Down Wiregrass Mall Mortgage	11/22/2004		(30,000,000	)		30,000,000					—
Acquisition- Orlando Fashion Square	12/1/2004					123,000,000					123,000,000
Working Capital	12/15/2004					6,000,000					6,000,000
Debt Amortization ⁽²⁾	12/31/2004		(5,444,952	)				(4,518,290	)		(9,963,242	)

Ending Balance	12/31/2004	$	855,172,160		$	271,000,000	$	470,954,840		$	1,597,127,000
Weighted Average Balance		$	877,899,721		$	165,869,565	$	475,473,130		$	1,519,242,416

⁽¹⁾	Includes mark to market of debt.

⁽²⁾	Includes the amortization of debt premium.

PAGE 19

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

DEBT RATIOS⁽¹⁾


	12/31/2004			12/31/2003
Total Liabilities to Gross Asset Value
Ratio of Total Liabilities⁽²⁾ to Gross Asset Value⁽³⁾⁽⁴⁾ less than or equal to 0.65 to 1.00.
Total Liabilities	$	1,639,890,798		$	1,579,303,539
Gross Asset Value	$	3,447,400,516		$	3,076,545,743
Ratio		47.57	%		51.33	%
EBITDA to Interest Expense
Ratio of EBITDA⁽⁵⁾ to Interest Expense⁽⁶⁾ greater than or equal to 1.90 to 1.00.
EBITDA	$	246,445,396		$	121,299,465
Interest Expense	$	104,323,539		$	57,969,142
Ratio		2.36			2.09
Adjusted EBITDA to Fixed Charges
Ratio of Adjusted EBITDA⁽⁷⁾ to Fixed Charges⁽⁸⁾ greater than or equal to 1.50 to 1.00.
Adjusted EBITDA	$	244,718,046		$	118,387,620
Fixed Charges	$	140,162,712		$	69,089,099
Ratio		1.75			1.71
Secured Indebtedness to Gross Asset Value
Ratio of Secured Indebtedness⁽⁹⁾ to Gross Asset Value⁽³⁾⁽⁴⁾ less than or equal to 0.60 to 1.00.
Secured Indebtedness	$	1,269,992,376		$	1,320,774,295
Gross Asset Value	$	3,447,400,516		$	3,076,545,743
Ratio		36.84	%		42.93	%

⁽¹⁾	Debt ratios are based on loan covenants included in the Trust’s Credit Facility, led by Wells Fargo Bank National Association, which was effective as of November 20, 2003 and as amended on January 31, 2005.

⁽²⁾	Total Liabilities defined as: Total PREIT consolidated GAAP liabilities plus certain letters of credit and other off balance sheet liabilities.

⁽³⁾

For the 12/31/2003 calculation Gross Asset Value was defined as: The sum of (i) Adjusted NOI for all Properties of PREIT, its subsidiaries and unconsolidated affiliates (excluding adjusted NOI for development and major redevelopment Property and the non-core properties) for the previous rolling four quarter period, capitalized at 9.00%, plus (ii) cash and cash equivalents plus (iii) all accounts receivable net of reserves plus (iv) book value of Property upon which construction is in progress and land held for development plus (v) development costs plus (vi) adjusted NOI for major redevelopment Property for the recent fiscal quarter (excluding those acquired or disposed of during such quarter) multiplied by 4 and capitalized at 9.00% plus (vii) redevelopment and predevelopment costs plus (viii) the purchase price of Property purchased in the last 2 fiscal quarters (excluding Crown properties) plus (ix) greater of PREIT’s:

(a)

ownership share or (b) recourse share of book value of construction in progress of unconsolidated affiliates plus (x) purchase price of Property by PREIT and its subsidiaries subject to purchase obligations, purchase obligations, forward commitments and unfunded obligations plus (xi) adjusted NOI for all non-core properties for the previous rolling four quarters capitalized at 11.00%. Capitalized terms used in this footnote shall have the meanings ascribed to such terms in the Credit Agreement.

⁽⁴⁾

For the 12/31/2004 calculation Gross Asset Value is defined as: The sum of (i) Adjusted NOI for all Properties of PREIT, its subsidiaries and unconsolidated affiliates (excluding adjusted NOI for development and major redevelopment Property) for the previous rolling four quarter period, capitalized at 8.25%, plus (ii) cash and cash equivalents plus (iii) all accounts receivable net of reserves plus (iv) book value of Property upon which construction is in progress and land held for development plus (v) development costs plus (vi) adjusted NOI for major redevelopment Property for the recent fiscal quarter (excluding those acquired or disposed of during such quarter) multiplied by 4 and capitalized at 8.25% plus (vii) redevelopment and predevelopment costs plus (viii) the purchase price of Property purchased in the last 2 fiscal quarters plus (ix) greater of PREIT’s:

(a)

ownership share or (b) recourse share of book value of construction in progress of unconsolidated affiliates plus (x) purchase price of Property by PREIT and its subsidiaries subject to purchase obligations, purchase obligations, forward commitments and unfunded obligations. Capitalized terms used in this footnote shall have the meanings ascribed to such terms in the Credit Agreement.

⁽⁵⁾

EBITDA defined as: Rolling four quarters of net earnings (loss) of the Trust before minority interests and distributions to holders of Preferred Stock, plus the sum of (i) depreciation and amortization expense and other non-cash charges, plus (ii) interest expense, plus (iii) all provisions for income taxes, minus (plus) (iv) extraordinary gains (losses), plus (v) the greater of (a) ownership share or (b) recourse share of EBITDA of unconsolidated affiliates.

⁽⁶⁾	Interest Expense defined as: All paid, accrued or capitalized interest expense excluding capitalized interest funded from construction loans plus the greater of (a) ownership share or (b) recourse share of all paid, accrued or capitalized interest expense of unconsolidated affiliates.

⁽⁷⁾	Adjusted EBITDA defined as: EBITDA plus ground rent payments minus the Reserve for Replacements for all Properties.

⁽⁸⁾	Fixed Charges defined as: Interest Expense plus regularly scheduled principal payments on Indebtedness other than any balloon, bullet or similar principal payment on any Indebtedness plus preferred dividends payments plus ground rent payments.

⁽⁹⁾	Secured Indebtedness defined as: (a) Aggregated principal amount of all Indebtedness that is secured by any Lien and (b) Indebtedness under a Guaranty of the Secured Indebtedness of another.

PAGE 20

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

PORTFOLIO SUMMARY—RETAIL

(Sorted by State)


Retail Properties ⁽¹⁾	City	State	Property Subtype	Management Status	Property Status	Ownership Interest		Date Acquired	Year Built/ Last Renovated	Years Since Renovation	Owned GLA (anchors)	Owned GLA (non- anchors)	TOTAL Owned GLA	Space Not Owned (Name/GLA)		TOTAL Property GLA	Majors/ Anchors	Lease Expiration
Wiregrass Commons	Dothan	AL	Enclosed Mall	PREIT	New	100	%	2003	1986/1999	5	—	229,713	229,713	Dillard’s JC Penney McRaes Parisian	403,163	632,876	Dillard’s JC Penney McRaes Parisian	1/31/37 5/30/14 1/31/37 1/31/37
Christiana Power Center I	Newark	DE	Power Center	PREIT	Existing	100	%	1998	1998	6	190,814	111,595	302,409		—	302,409	Costco Dick’s Sporting Gds	1/31/19 11/30/13
South Blanding Village	Jacksonville	FL	Strip Center	PREIT	Existing	100	%	1988/1990	1986	18	73,921	32,736	106,657		—	106,657	Staples Food Lion	9/30/08 7/31/08
Orlando Fashion Square	Orlando	FL	Enclosed Mall	PREIT	New	100	%	2004	1973/2003	1	491,999	394,826	886,825	Sears	155,576	1,042,401	Burdines-Macy’s Dillard’s JC Penney Sears	10/31/71 1/31/14 4/30/13 N/A
Francis Scott Key Mall ⁽²⁾	Frederick	MD	Enclosed Mall	PREIT	New	89	%	2003	1978/1991	13	291,620	278,628	570,248	Hecht’s	139,333	709,581	Hecht’s Sears JC Penney Value City	N/A 7/31/08 5/31/06 6/30/10
Valley Mall	Hagerstown	MD	Enclosed Mall	PREIT	New	100	%	2003	1974/1999	5	294,348	356,960	651,308	Sears Hecht’s	243,400	894,708	Sears JC Penney Bon-Ton Hecht’s	4/14/44 10/3/09 1/31/14 10/23/49
The Mall at Prince Georges	Hyattsville	MD	Enclosed Mall	PREIT	Redevelopment	100	%	1998	1959/2004	0	480,443	348,889	829,332		—	829,332	JC Penney Hecht Target	7/31/06 10/31/08 1/31/10
Dartmouth Mall	Dartmouth	MA	Enclosed Mall	PREIT	Existing	100	%	1997	1971/2000	4	208,460	321,816	530,276	Filene’s	140,000	670,276	JC Penney Sears Filene’s	7/31/09 4/12/06 N/A
Cherry Hill Mall	Cherry Hill	NJ	Enclosed Mall	PREIT	Existing	100	%	2003	1961/1990	14	—	532,407	532,407	JC Penney Macy’s Strawbridge’s	740,770	1,273,177	JC Penney Macy’s Strawbridge’s	N/A N/A N/A
Moorestown Mall	Moorestown	NJ	Enclosed Mall	PREIT	Existing	100	%	2003	1963/2000	4	408,356	328,152	736,508	Lord & Taylor Strawbridge’s	321,200	1,057,708	Boscov’s Lord & Taylor Sears Strawbridge’s	10/31/10 N/A 10/5/22 N/A
Phillipsburg Mall	Phillipsburg	NJ	Enclosed Mall	PREIT	New	89	%	2003	1989/2003	1	326,170	242,733	568,903		—	568,903	Bon-Ton JC Penney Sears Kohl’s	1/31/10 3/31/10 4/30/09 1/31/25
Echelon Mall	Voorhees	NJ	Enclosed Mall	PREIT	Existing	100	%	2003	1970/1998	6	310,840	433,275	744,115	Boscov’s Strawbridge’s	396,783	1,140,898	Boscov’s Strawbridge’s	N/A N/A
Jacksonville Mall	Jacksonville	NC	Enclosed Mall	PREIT	New	100	%	2003	1981/1998	6	242,115	232,518	474,633		—	474,633	Belks JC Penney Sears	8/21/11 8/31/05 8/4/11
Crest Plaza Shopping Center	Allentown	PA	Strip Center	PREIT	Existing	100	%	1964	1959/2003	1	53,445	60,826	114,271	Target	143,130	257,401	Weis Market Target	1/31/07 N/A
Lehigh Valley Mall	Allentown	PA	Enclosed Mall	Third Party	Existing	50	%	1973	1977/1996	8	212,000	463,255	675,255	JC Penney Strawbridge’s Firestone	371,986	1,047,241	Macy’s JC Penney Strawbridge’s	7/31/12 N/A N/A
South Mall ⁽²⁾	Allentown	PA	Enclosed Mall	PREIT	New	89	%	2003	1975/1992	12	188,858	214,884	403,742		—	403,742	Bon-Ton Stein Mart Steve & Barry’s	9/30/05 10/31/06 1/31/11
Whitehall Mall	Allentown	PA	Power Center	Third Party	Existing	50	%	1964	1964/1998	6	294,635	231,727	526,362		—	526,362	Kohl’s Sears Bed, Bath & Beyond	3/9/07 9/18/11 1/31/10
Logan Valley Mall ⁽²⁾	Altoona	PA	Enclosed Mall	PREIT	New	100	%	2003	1960/1997	7	454,387	327,248	781,635		—	781,635	JC Penney Kaufmann’s Sears	6/30/17 1/31/10 10/31/16
Capital City Mall ⁽²⁾	Camp Hill	PA	Enclosed Mall	PREIT	New	100	%	2003	1974/1998	6	204,301	284,347	488,648	Hecht’s	120,000	608,648	JC Penney Hecht’s Sears	11/30/10 N/A 7/28/09
Chambersburg Mall ⁽²⁾	Chambersburg	PA	Enclosed Mall	PREIT	New	89	%	2003	1982	22	241,690	212,251	453,941		—	453,941	Bon-Ton JC Penney Sears Value City	7/31/06 3/31/12 2/9/10 2/28/07
Palmer Park Mall	Easton	PA	Enclosed Mall	PREIT	Existing	100	%	1972/2003	1972/1998	6	314,235	131,775	446,010		—	446,010	Bon-Ton Boscov’s	7/25/14 10/31/18

PAGE 21A

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

PORTFOLIO SUMMARY—RETAIL

(Sorted by State)


Retail Properties ⁽¹⁾	City	State	Property Subtype	Management Status	Property Status	Ownership Interest		Date Acquired	Year Built/ Last Renovated	Years Since Renovation	Owned GLA (anchors)	Owned GLA (non- anchors)	TOTAL Owned GLA	Space Not Owned (Name/GLA)		TOTAL Property GLA	Majors / Anchors	Lease Expiration
Exton Square Mall	Exton	PA	Enclosed Mall	PREIT	Existing	100	%	2003	1973/2000	4	440,301	369,678	809,979	Strawbridge’s K-Mart	277,468	1,087,447	Boscov’s JC Penney K-Mart Sears Strawbridge’s	10/31/19 5/31/20 N/A 1/31/20 N/A
Festival at Exton	Exton	PA	Strip Center	PREIT	Existing	100	%	1998	1991	13	60,425	84,618	145,043		—	145,043	Sears Hardware Clemen’s	8/18/05 10/31/11
North Hanover Mall ⁽²⁾	Hanover	PA	Enclosed Mall	PREIT	New	89	%	2003	1967/1999	5	288,177	165,734	453,911		—	453,911	Bon-Ton JC Penney Black Rose Antiques Sears	1/31/06 1/31/11 N/A 11/30/09
Paxton Towne Centre	Harrisburg	PA	Power Center	PREIT	Existing	100	%	1999	2001	3	151,627	292,856	444,483	Target Costco	273,058	717,541	Target Kohl’s Weis Markets Costco	N/A 1/25/21 11/30/20 N/A
Laurel Mall ⁽³⁾	Hazleton	PA	Enclosed Mall	Third Party	Existing	40	%	1988	1973/1995	9	350,323	209,200	559,523		—	559,523	Boscov’s K-Mart JC Penney	4/30/08 8/31/19 10/31/09
Red Rose Commons	Lancaster	PA	Power Center	Third Party	Existing	50	%	1998	1998	6	—	263,452	263,452	Weis Markets Home Depot	199,590	463,042	Weis Markets Home Depot	N/A N/A
The Court at Oxford Valley	Langhorne	PA	Power Center	Third Party	Existing	50	%	1997	1996	8	176,831	280,032	456,863	Home Depot BJ’s	247,623	704,486	Best Buy Dick’s Sporting Gds Linens N Things	12/31/11 4/15/11 2/14/17
Beaver Valley Mall	Monaca	PA	Enclosed Mall	PREIT	Existing	100	%	2002	1970/1991	13	511,267	446,945	958,212	Kaufmann’s	204,770	1,162,982	Boscov’s JC Penney Sears Kaufmann’s	9/30/18 9/30/17 8/15/06 N/A
Lycoming Mall ⁽²⁾	Pennsdale	PA	Enclosed Mall	PREIT	New	89	%	2003	1978/1990	14	321,441	340,909	662,350	Kaufmann’s	120,000	782,350	Bon-Ton JC Penney Kaufman’s Sears Value City	7/31/06 10/31/05 N/A 7/31/08 7/31/08
Northeast Tower Center	Philadelphia	PA	Power Center	PREIT	Existing	100	%	1998/1999	1997/1998	6	256,021	182,521	438,542	Raymour & Flanigan	38,678	477,220	Home Depot Petsmart Wal-Mart	9/30/10 2/28/12 1/31/14
The Gallery at Market East I ⁽⁴⁾	Philadelphia	PA	Enclosed Mall	PREIT	Existing	100	%	2003	1977/1990	13		193,618	193,618		—	193,618	K-Mart Strawbridge’s	N/A N/A
The Gallery at Market East II ⁽⁴⁾	Philadelphia	PA	Enclosed Mall	PREIT	New	100	%	2004	1984	20	127,271	206,796	334,067		—	334,067	Burlington Coat Factory	2/28/2032
Plymouth Meeting Mall	Plymouth Meeting	PA	Enclosed Mall	PREIT	Existing	100	%	2003	1966/1999	5	345,000	413,531	758,531	Strawbridge’s	214,635	973,166	AMC Theater Boscov’s Strawbridge’s	12/31/18 10/31/16 N/A
Metroplex Shopping Center	Plymouth Meeting	PA	Power Center	Third Party	Existing	50	%	1999	2001	3	67,185	410,276	477,461	Target Lowe’s	300,729	778,190	Target Lowe’s Giant	N/A N/A 2/28/21
Viewmont Mall ⁽²⁾	Scranton	PA	Enclosed Mall	PREIT	New	89	%	2003	1968/1996	8	386,262	237,011	623,273	Kaufmann’s	120,000	743,273	JC Penney Sears Kauffmann’s	10/31/10 12/31/05 N/A
Springfield Park I & II	Springfield	PA	Strip Center	PREIT	Existing	50	%	1997/1998	1997/1998	6	83,539	43,292	126,831	Target	145,669	272,500	Target Bed, Bath & Beyond LA Fitness	N/A 1/31/09 3/31/17
Nittany Mall ⁽²⁾	State College	PA	Enclosed Mall	PREIT	New	89	%	2003	1968/1990	14	221,462	215,616	437,078	Kaufmann’s	95,000	532,078	Bon-Ton JC Penney Kaufmann’s Sears	1/31/08 7/31/10 N/A 8/31/10
Uniontown Mall ⁽²⁾	Uniontown	PA	Enclosed Mall	PREIT	New	89	%	2003	1972/1990	14	421,378	276,655	698,033		—	698,033	Bon-Ton JC Penney Roomful Express Furn. Sears Teletech Customer Care Value City	1/31/06 10/31/05 3/26/05 2/25/08 6/28/05 7/31/07
Creekview Shopping Center	Warrington	PA	Power Center	PREIT	Existing	100	%	1999	2001	3	—	136,086	136,086	Target Lowe’s	288,916	425,002	Target Lowe’s Genuardi’s	N/A N/A 12/31/21

PAGE 21B

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

PORTFOLIO SUMMARY-RETAIL

(Sorted by State)

Retail
Properties ⁽¹⁾

City

State

Property
Subtype

Management
Status

Property
Status

Ownership
Interest

Date
Acquired

Year Built/
Last
Renovated

Years
Since
Renovation

Owned
GLA
(anchors)

Wiregrass Commons

Dothan

Enclosed
Mall

PREIT

New

100%

2003

1986/1999

—

Christiana Power Center I

Newark

Power
Center

PREIT

Existing

100%

1998

190,814

South Blanding Village

Jacksonville

Strip
Center

PREIT

Existing

100%

1988/1990

1986

73,921

Orlando Fashion Square

Orlando

Enclosed
Mall

PREIT

New

100%

2004

1973/2003

491,999

Francis Scott Key Mall ⁽²⁾

Frederick

Enclosed
Mall

PREIT

New

89%

2003

1978/1991

291,620

Valley Mall

Hagerstown

Enclosed
Mall

PREIT

New

100%

2003

1974/1999

294,348

The Mall at Prince Georges

Hyattsville

Enclosed
Mall

PREIT

Redevelopment

100%

1998

1959/2004

480,443

Dartmouth Mall

Dartmouth

Enclosed
Mall

PREIT

Existing

100%

1997

1971/2000

208,460

Cherry Hill Mall

Cherry Hill

Enclosed
Mall

PREIT

Existing

100%

2003

1961/1990

—

Moorestown Mall

Moorestown

Enclosed
Mall

PREIT

Existing

100%

2003

1963/2000

408,356

Phillipsburg Mall

Phillipsburg

Enclosed
Mall

PREIT

New

89%

2003

1989/2003

326,170

Echelon Mall

Voorhees

Enclosed
Mall

PREIT

Existing

100%

2003

1970/1998

310,840

Jacksonville Mall

Jacksonville

Enclosed
Mall

PREIT

New

100%

2003

1981/1998

242,115

Crest Plaza Shopping Center

Allentown

Strip
Center

PREIT

Existing

100%

1964

1959/2003

53,445

Lehigh Valley Mall

Allentown

Enclosed
Mall

Third
Party

Existing

50%

1973

1977/1996

212,000

South Mall ⁽²⁾

Allentown

Enclosed
Mall

PREIT

New

89%

2003

1975/1992

188,858

Whitehall Mall

Allentown

Power
Center

Third
Party

Existing

50%

1964

1964/1998

294,635

Logan Valley Mall ⁽²⁾

Altoona

Enclosed
Mall

PREIT

New

100%

2003

1960/1997

454,387

Capital City Mall ⁽²⁾

Camp Hill

Enclosed
Mall

PREIT

New

100%

2003

1974/1998

204,301

Chambersburg Mall ⁽²⁾

Chambersburg

Enclosed
Mall

PREIT

New

89%

2003

1982

241,690

Palmer Park Mall

Easton

Enclosed
Mall

PREIT

Existing

100%

1972/2003

1972/1998

314,235

Exton Square Mall

Exton

Enclosed
Mall

PREIT

Existing

100%

2003

1973/2000

440,301

Festival at Exton

Exton

Strip
Center

PREIT

Existing

100%

1998

1991

60,425

North Hanover Mall ⁽²⁾

Hanover

Enclosed
Mall

PREIT

New

89%

2003

1967/1999

288,177

Paxton Towne Centre

Harrisburg

Power
Center

PREIT

Existing

100%

1999

2001

151,627

Laurel Mall ⁽³⁾

Hazleton

Enclosed
Mall

Third
Party

Existing

40%

1988

1973/1995

350,323

Red Rose Commons

Lancaster

Power
Center

Third
Party

Existing

50%

1998

—

The Court at Oxford Valley

Langhorne

Power
Center

Third
Party

Existing

50%

1997

1996

176,831

Beaver Valley Mall

Monaca

Enclosed
Mall

PREIT

Existing

100%

2002

1970/1991

511,267

Lycoming Mall ⁽²⁾

Pennsdale

Enclosed
Mall

PREIT

New

89%

2003

1978/1990

321,441

Northeast Tower Center

Philadelphia

Power
Center

PREIT

Existing

100%

1998/1999

1997/1998

256,021

The Gallery at Market East I ⁽⁴⁾

Philadelphia

Enclosed
Mall

PREIT

Existing

100%

2003

1977/1990

The Gallery at Market East II ⁽⁴⁾

Philadelphia

Enclosed
Mall

PREIT

New

100%

2004

1984

127,271

Plymouth Meeting Mall

Plymouth
Meeting

Enclosed
Mall

PREIT

Existing

100%

2003

1966/1999

345,000

Metroplex Shopping Center

Plymouth
Meeting

Power
Center

Third
Party

Existing

50%

1999

2001

67,185

Viewmont Mall ⁽²⁾

Scranton

Enclosed
Mall

PREIT

New

89%

2003

1968/1996

386,262

Springfield Park I & II

Springfield

Strip
Center

PREIT

Existing

50%

1997/1998

83,539

Nittany Mall ⁽²⁾

State College

Enclosed
Mall

PREIT

New

89%

2003

1968/1990

221,462

Uniontown Mall ⁽²⁾

Uniontown

Enclosed
Mall

PREIT

New

89%

2003

1972/1990

421,378

Creekview Shopping Center

Warrington

Power
Center

PREIT

Existing

100%

1999

2001

—

Washington Crown Center ⁽²⁾

Washington

Enclosed
Mall

PREIT

New

89%

2003

1969/1999

245,401

Wyoming Valley Mall ⁽²⁾

Wilkes-Barre

Enclosed
Mall

PREIT

New

100%

2003

1974/1995

592,110

Willow Grove Park

Willow Grove

Enclosed
Mall

PREIT

New

100%

2000/2003

1982/2001

225,000

Magnolia Mall

Florence

Enclosed
Mall

PREIT

Existing

100%

1997

1979/1992

343,118

The Commons at Magnolia

Florence

Strip
Center

PREIT

Existing

100%

1999

1991/2002

51,574

New River Valley Mall

Christiansburg

Enclosed
Mall

PREIT

New

89%

2003

1988

240,306

Patrick Henry Mall

Newport
News

Enclosed
Mall

PREIT

New

89%

2003

1988/1999

267,175

Crossroads Mall

Beckley

Enclosed
Mall

PREIT

New

100%

2003

1981

256,248

Valley View Mall

La Crosse

Enclosed
Mall

PREIT

New

100%

2003

1980/2001

96,357

Properties Held For Sale

Schuylkill Mall ⁽²⁾

Frackville

Enclosed
Mall

PREIT

New

100%

2003

1980/1991

346,990

TOTAL ASSETS HELD FOR SALE

346,990

TOTAL CONTINUING PROPERTIES

11,808,436

TOTAL WHOLLY OWNED

10,970,913

TOTAL JOINT VENTURE

1,184,513

TOTAL FOR Wholly Owned and Partnerships ⁽⁵⁾

12,155,426

AVERAGE FOR Wholly Owned and Partnerships

8.35


Retail Properties ⁽¹⁾	City	State	Owned GLA (non-anchors)	TOTAL Owned GLA	Space Not Owned (Name/GLA)		TOTAL Property GLA	Majors / Anchors	Lease Expiration
Wiregrass Commons	Dothan	AL	229,713	229,713	Dillard’s JC Penney McRaes Parisian	403,163	632,876	Dillard’s JC Penney McRaes Parisian	1/31/37 5/30/14 1/31/37 1/31/37
Christiana Power Center I	Newark	DE	111,595	302,409		—	302,409	Costco Dick’s Sporting Gds	1/31/19 11/30/13
South Blanding Village	Jacksonville	FL	32,736	106,657		—	106,657	Staples Food Lion	9/30/08 7/31/08
Orlando Fashion Square	Orlando	FL	394,826	886,825	Sears	155,576	1,042,401	Burdines- Macy’s Dillard’s JC Penney Sears	10/31/71 1/31/14 4/30/13 N/A
Francis Scott Key Mall ⁽²⁾	Frederick	MD	278,628	570,248	Hecht’s	139,333	709,581	Hecht’s Sears JC Penney Value City	N/A 7/31/08 5/31/06 6/30/10
Valley Mall	Hagerstown	MD	356,960	651,308	Sears Hecht’s	243,400	894,708	Sears JC Penney Bon- Ton Hecht’s	4/14/44 10/3/09 1/31/14 10/23/49
The Mall at Prince Georges	Hyattsville	MD	348,889	829,332		—	829,332	JC Penney Hecht Target	7/31/06 10/31/08 1/31/10
Dartmouth Mall	Dartmouth	MA	321,816	530,276	Filene’s	140,000	670,276	JC Penney Sears Filene’s	7/31/09 4/12/06 N/A
Cherry Hill Mall	Cherry Hill	NJ	532,407	532,407	JC Penney Macy’s Strawbridge’s	740,770	1,273,177	JC Penney Macy’s Strawbridge’s	N/A N/A N/A
Moorestown Mall	Moorestown	NJ	328,152	736,508	Lord & Taylor Strawbridge’s	321,200	1,057,708	Boscov’s Lord & Taylor Sears Strawbridge’s	10/31/10 N/A 10/5/22 N/A
Phillipsburg Mall	Phillipsburg	NJ	242,733	568,903		—	568,903	Bon-Ton JC Penney Sears Kohl’s	1/31/10 3/31/10 4/30/09 1/31/25
Echelon Mall	Voorhees	NJ	433,275	744,115	Boscov’s Strawbridge’s	396,783	1,140,898	Boscov’s Strawbridge’s	N/A N/A
Jacksonville Mall	Jacksonville	NC	232,518	474,633		—	474,633	Belks JC Penney Sears	8/21/11 8/31/05 8/4/11
Crest Plaza Shopping Center	Allentown	PA	60,826	114,271	Target	143,130	257,401	Weis Market Target	1/31/07 N/A
Lehigh Valley Mall	Allentown	PA	463,255	675,255	JC Penney Strawbridge’s Firestone	371,986	1,047,241	Macy’s JC Penney Strawbridge’s	7/31/12 N/A N/A
South Mall ⁽²⁾	Allentown	PA	214,884	403,742		—	403,742	Bon-Ton Stein Mart Steve & Barry’s	9/30/05 10/31/06 1/31/11
Whitehall Mall	Allentown	PA	231,727	526,362		—	526,362	Kohl’s Sears Bed, Bath & Beyond	3/9/07 9/18/11 1/31/10
Logan Valley Mall ⁽²⁾	Altoona	PA	327,248	781,635		—	781,635	JC Penney Kaufmann’s Sears	6/30/17 1/31/10 10/31/16
Capital City Mall ⁽²⁾	Camp Hill	PA	284,347	488,648	Hecht’s	120,000	608,648	JC Penney Hecht’s Sears	11/30/10 N/A 7/28/09
Chambersburg Mall ⁽²⁾	Chambersburg	PA	212,251	453,941		—	453,941	Bon-Ton JC Penney Sears Value City	7/31/06 3/31/12 2/9/10 2/28/07
Palmer Park Mall	Easton	PA	131,775	446,010		—	446,010	Bon-Ton Boscov’s	7/25/14 10/31/18
Exton Square Mall	Exton	PA	369,678	809,979	Strawbridge’s K-Mart	277,468	1,087,447	Boscov’s JC Penney K-Mart Sears Strawbridge’s	10/31/19 5/31/20 N/A 1/31/20 N/A
Festival at Exton	Exton	PA	84,618	145,043		—	145,043	Sears Hardware Clemen’s	8/18/05 10/31/11
North Hanover Mall ⁽²⁾	Hanover	PA	165,734	453,911		—	453,911	Bon-Ton JC Penney Black Rose Antiques Sears	1/31/06 1/31/11 N/A 11/30/09
Paxton Towne Centre	Harrisburg	PA	292,856	444,483	Target Costco	273,058	717,541	Target Kohl’s Weis Markets Costco	N/A 1/25/21 11/30/20 N/A
Laurel Mall ⁽³⁾	Hazleton	PA	209,200	559,523		—	559,523	Boscov’s K- Mart JC Penney	4/30/08 8/31/19 10/31/09
Red Rose Commons	Lancaster	PA	263,452	263,452	Weis Markets Home Depot	199,590	463,042	Weis Markets Home Depot	N/A N/A
The Court at Oxford Valley	Langhorne	PA	280,032	456,863	Home Depot BJ’s	247,623	704,486	Best Buy Dick’s Sporting Gds Linens N Things	12/31/11 4/15/11 2/14/17
Beaver Valley Mall	Monaca	PA	446,945	958,212	Kaufmann’s	204,770	1,162,982	Boscov’s JC Penney Sears Kaufmann’s	9/30/18 9/30/17 8/15/06 N/A
Lycoming Mall ⁽²⁾	Pennsdale	PA	340,909	662,350	Kaufmann’s	120,000	782,350	Bon-Ton JC Penney Kaufman’s Sears Value City	7/31/06 10/31/05 N/A 7/31/08 7/31/08
Northeast Tower Center	Philadelphia	PA	182,521	438,542	Raymour & Flanigan	38,678	477,220	Home Depot Petsmart Wal- Mart	9/30/10 2/28/12 1/31/14
The Gallery at Market East I ⁽⁴⁾	Philadelphia	PA	193,618	193,618		—	193,618	K-Mart Strawbridge’s	N/A N/A
The Gallery at Market East II ⁽⁴⁾	Philadelphia	PA	206,796	334,067		—	334,067	Burlington Coat Factory	2/28/2032
Plymouth Meeting Mall	Plymouth Meeting	PA	413,531	758,531	Strawbridge’s	214,635	973,166	AMC Theater Boscov’s Strawbridge’s	12/31/18 10/31/16 N/A
Metroplex Shopping Center	Plymouth Meeting	PA	410,276	477,461	Target Lowe’s	300,729	778,190	Target Lowe’s Giant	N/A N/A 2/28/21
Viewmont Mall ⁽²⁾	Scranton	PA	237,011	623,273	Kaufmann’s	120,000	743,273	JC Penney Sears Kauffmann’s	10/31/10 12/31/05 N/A
Springfield Park I & II	Springfield	PA	43,292	126,831	Target	145,669	272,500	Target Bed, Bath & Beyond LA Fitness	N/A 1/31/09 3/31/17
Nittany Mall ⁽²⁾	State College	PA	215,616	437,078	Kaufmann’s	95,000	532,078	Bon-Ton JC Penney Kaufmann’s Sears	1/31/08 7/31/10 N/A 8/31/10
Uniontown Mall ⁽²⁾	Uniontown	PA	276,655	698,033		—	698,033	Bon-Ton JC Penney Roomful Express Furn. Sears Teletech Customer Care Value City	1/31/06 10/31/05 3/26/05 2/25/08 6/28/05 7/31/07
Creekview Shopping Center	Warrington	PA	136,086	136,086	Target Lowe’s	288,916	425,002	Target Lowe’s Genuardi’s	N/A N/A 12/31/21
Washington Crown Center ⁽²⁾	Washington	PA	288,175	533,576	Kaufmann’s	140,095	673,671	Sears Bon-Ton Gander Kaufmann’s	8/17/09 1/31/10 7/24/13 N/A
Wyoming Valley Mall ⁽²⁾	Wilkes-Barre	PA	319,531	911,641		—	911,641	Bon-Ton JC Penney Sears Kaufmann’s	1/31/07 1/31/07 8/1/06 1/31/07
Willow Grove Park	Willow Grove	PA	339,144	564,144	Sears Bloomingdale’s Strawbridge	641,861	1,206,005	Sears Bloomingdale’s Strawbridge’s Macy’s	N/A N/A N/A 1/31/22
Magnolia Mall	Florence	SC	221,677	564,795		—	564,795	Belk Best Buy JC Penney Sears	1/31/06 1/31/13 3/31/07 10/16/09
The Commons at Magnolia	Florence	SC	52,915	104,489	Target	126,200	230,689	Goody’s Target	5/31/12 N/A
New River Valley Mall	Christiansburg	VA	187,849	428,155		—	428,155	Belks JC Penney Sears	4/19/08 3/31/08 8/2/08
Patrick Henry Mall	Newport News	VA	233,191	500,366	Hecht’s	140,000	640,366	Dillard’s Mens Dillard’s Womens JC Penney Hecht’s	4/30/08 9/22/13 10/31/15 N/A
Crossroads Mall	Beckley	WV	193,843	450,091		—	450,091	Sears JC Penney Belk	3/31/06 12/31/06 11/4/08
Valley View Mall	La Crosse	WI	236,099	332,456	Herberges Marshall Fields Sears	254,596	587,052	JC Penney Herberges Marshall Fields Sears	7/31/10 N/A N/A N/A
Properties Held For Sale
Schuylkill Mall ⁽²⁾	Frackville	PA	318,761	665,751	Bon-Ton	60,916	726,667	K-Mart Sears Bon-Ton Black Diamond Antiques	10/31/10 10/31/05 N/A 12/31/04
TOTAL ASSETS HELD FOR SALE			318,761	665,751	—	60,916	726,667
TOTAL CONTINUING PROPERTIES			12,611,811	24,420,247	—	7,004,229	31,424,476

TOTAL WHOLLY OWNED			11,029,338	22,000,251		5,799,548	27,799,799

TOTAL JOINT VENTURE			1,901,234	3,085,747		1,265,597	4,351,344

TOTAL FOR Wholly Owned and Partnerships ⁽⁵⁾			12,930,572	25,085,998		7,065,145	32,151,143

AVERAGE FOR Wholly Owned and Partnerships

Summary of Properties for Wholly Owned and Partnership Properties


Enclosed Mall	PREIT Managed	Existing	Wholly owned
36	43	25	42
Power Center	Third Party Managed	New	Joint Venture
8	6	23	7
Strip Center		Redevelopment
5		1
49	49	49	49

Summary of Total Owned GLA for Wholly Owned and

Partnerships Properties


Enclosed Mall	PREIT Managed	Existing	Wholly Owned	Top 5 assets as a percentage of Total Owned GLA:
21,443,049	22,127,082	11,152,178	22,000,251	17.5%
Power Center	Third Party Managed	New	Partnerships	Top asset as a percentage of Total Owned GLA:
3,045,658	2,958,916	13,104,488	3,085,747	3.8%
Strip Center		Redevelopment
597,291		829,332
25,085,998	25,085,998	25,085,998	25,085,998

⁽¹⁾	Does not include Westgate Anchor pad in Bethlehem, PA of 108,100 sf leased for Bon-Ton with expiration date of 11/23/2005

⁽²⁾	PREIT has an 89% ownership interest and a 99% economic interest in these properties. These properties are consolidated for financial reporting purposes.

⁽³⁾	In February, 2005 PREIT announced that it signed an agreement to sell Laurel Mall.

⁽⁴⁾	The Gallery at Market East I & The Gallery at Market East II were counted as one property.

⁽⁵⁾	In February, 2005 PREIT acquired Cumberland Mall in Vineland, New Jersey. The mall is 925,000 square feet.

PAGE 21C

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

QUARTERLY ACTIVITY

Property Acquisitions/Dispositions Summary


Name of Project, Location		Square Feet/Units/ Acres	Ownership Interest		Date Acquired, Completed, or Sold	Total Cost or Price		PREIT’s Cost or Price		Expected NOI Cap⁽¹⁾		Major Tenants
Acquisitions:
Orlando Fashion Square, Orlando, Florida	square feet	1,100,000	100	%	4Q04	$	123,500,000	$	123,500,000	7.6	%	Burdines- Macy’s, Dillard’s, JC Penney, Sears

TOTAL ACQUISITIONS	square feet	1,100,000				$	123,500,000	$	123,500,000
Pending Acquisitions:
Cumberland Mall, Vineland, New Jersey	square feet	925,000	100	%	1Q05	$	59,500,000	$	59,500,000	10.2	%	Boscov’s, JC Penney, Value City

TOTAL PENDING ACQUISITIONS	square feet	925,000				$	59,500,000	$	59,500,000
Divestitures
None
TOTAL DIVESTITURES	square feet	—				$	—	$	—
Pending Divestitures:
Schuylkill Mall, Frackville, PA	square feet	726,667			N/A		N/A		N/A	N/A

TOTAL PENDING DIVESTITURES	square feet	726,667				$	—	$	—

⁽¹⁾	Expected NOI Cap is defined as PREIT’s share of NOI in the year of stabilization divided by PREIT’s share of the investment, except in the case of partner buyouts, where Expected NOI Cap is defined as incremental NOI budgeted / PREIT’s incremental inv

PAGE 22

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

Yearly Activity

Property Acquisitions/Dispositions Summary


Name of Project, Location		Square Feet/Units/ Acres	Ownership Interest		Date Acquired, Completed, or Sold	Total Cost or Price		PREIT’s Cost or Price		Expected NOI Cap ⁽¹⁾		Major Tenants
Acquisitions:
Orlando Fashion Square, Orlando, Florida	square feet	1,100,000	100	%	4Q04	$	123,500,000	$	123,500,000	7.6	%	Burdines- Macy’s, Dillard’s, JC Penney, Sears
The Gallery at Market East II, Philadelphia, Pennsylvania		334,400	100	%	2Q04		32,400,000		32,400,000	9.5	%	Burlington Coat Factory
Cherry Hill, Cherry Hill, NJ		1,266,080	27	%	2Q04		17,834,565		17,834,565	N/A		JC Penney, Macy’s, Strawbridge’s
Parcel of Land, Florence South Carolina	Acres	25	100	%	1Q04		3,800,000		3,800,000

TOTAL ACQUISITIONS	square feet	2,700,480				$	177,534,565	$	177,534,565
	Acres	25
Pending Acquisitions:
Cumberland Mall, Vineland, New Jersey		925,000	100	%	1Q05	$	59,500,000	$	59,500,000	10.2	%	Boscov’s, JC Penney, Value City

TOTAL PENDING ACQUISITIONS	square feet	925,000				$	59,500,000	$	59,500,000
Divestitures
Bradley Square Mall, Cleveland, TN, Martinsburg Mall, Martinsburg, WV, Mount Berry Square Mall, Rome, GA, Shenango Valley Mall, Hermitage, PA and West Manchester Mall, York, PA.	square feet	2,625,806	100	%	3Q04	$	110,700,000	$	110,700,000	11.0	%
Rio Grande Mall, Rio Grande, New Jersey		165,583	60	%	3Q04		4,100,000		4,100,000	11.0	%

TOTAL DIVESTITURES	square feet	2,791,389				$	114,800,000	$	114,800,000
Pending Divestitures:
Schuylkill Mall, Frackville, Pennsylvania	square feet	726,667	100	%	N/A		N/A		N/A	N/A

TOTAL PENDING DIVESTITURES	square feet	726,667				$	—	$	—

⁽¹⁾	Expected NOI Cap is defined as PREIT’s share of NOI in the year of stabilization divided by PREIT’s share of the investment, except in the case of partner buyouts, where Expected NOI Cap is defined as incremental NOI budgeted / PREIT’s incremental investment in the property.

PAGE 23

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

Development Activity

NAME OF PROJECT

LOCATION

PROPERTY
TYPE

TOTAL
PROJECTED
PROPERTY
GLA (sq ft) ⁽¹⁾

TOTAL
PROJECTED
COST ⁽¹⁾

PREIT’s
SHARE OF
COST

PREIT’s
SHARE OF
INVESTMENT
TO DATE

EXPECTED
STABILIZED
NOI CAP

CONST
START
DATE

DATE OF
INITIAL
OCCUPANCY

Christiana Power Center (Phase II) ⁽²⁾

Newark, DE

Power
Center

355,670

N/A

4,716,063

N/A

Lacey

Ocean
County, NJ

Power
Center

273,111

34,650,874

25,650,874

2,865,686

10.2

2Q05

4Q05

New Garden

New Garden
Twp, PA

Power
Center

404,614

42,580,062

27,830,062

1,502,872

8.5

4Q05

3Q06

Valley View Downs

South
Beaver Twp,
PA

Land

300,000

N/A

10,000,000

1,045,886

⁽⁴

⁾

4Q05

4Q07

Pavilion at Market East ⁽⁵⁾

Philadelphia,
PA

Land

N/A

1,506,178

N/A

Total Development Activity

1,333,395

77,230,936

63,480,936

11,636,685

9.3


NAME OF PROJECT	EXPECTED DATE OF COMPLETION		STABILIZED OPERATIONS DATE	STATUS	% COMP.		% LEASED		% OCCUPIED		ANCHORS	PREIT’s SHARE
Christiana Power Center (Phase II) ⁽²⁾	N/A		N/A	Development	N/A		0	%	0	%		100	%
Lacey	3Q06	⁽³⁾	4Q06	Development	11	%	48	%	0	%	Home Depot	100	%
New Garden	4Q06		1Q07	Development	5	%	32	%	0	%	Home Depot, Supermarket	100	%
Valley View Downs	4Q07		4Q07	Development	10	%	N/A		0	%	Valley View Downs	N/A
Pavilion at Market East ⁽⁵⁾	N/A		N/A	Construction	N/A		N/A		N/A		TBD	50	%
Total Development Activity

⁽¹⁾	GLA & total project cost include tenants that purchased their respective land; therefore, the % leased & occupied will also include these tenants.

⁽²⁾

On April 28, 2004, the Supreme Court of the State of Delaware affirmed a Court of Chancery determination that the Delaware Department of Transportation violated the terms of a 1992 Settlement Agreement pertaining to the development of the Company’s Christiana Phase II project. The Company owns a 50% interest in this planned approximately 356,000 square foot power center project located in Newark, Delaware adjacent to the Company’s Christiana Power Center I. Under the terms of the Supreme Court decision the matter has been remitted to the Superior Court of the State of Delaware for a determination of the damages to which the Company is entitled. The Company is unable to predict the outcome of this proceeding.

⁽³⁾	Home Depot is expected to open in 4Q05 with the balance of the Shopping Center to open during the 3Q06.

⁽⁴⁾

On October 7, 2004, PREIT filed a Current Report on Form 8-K to report that it had entered into a binding memorandum of understanding with Valley View Downs, LP and Centaur Pennsylvania, LLC which contemplates that PREIT will manage the development of a harness racetrack and a casino accommodating up to 3,000 slot machines on an approximately 218 acre property located 35 miles northwest of Pittsburgh, Pennsylvania. Until three months following the commencement of Alternative Gaming operations at the Property (the “Payment Commencement Date”), rent will accrue at 10% per year on the aggregate payments made by PREIT to the Partnership and in respect of Acquisition Costs. Beginning at the Payment Commencement Date, rental payments to PREIT will be $3 million per year for each of the first two years following the Payment Commencement Date, $4 million for the third year thereafter, $5 million for the fourth year thereafter, and for the remainder of the term of the Lease, as the term may be extended, $5 million per year, subject to annual adjustments for the fifth and subsequent years based upon increases in the consumer price index. A pro rata portion of the rent accrued prior to the Payment Commencement Date will be paid in monthly installments over the 117 months following the Payment Commencement Date.

⁽⁵⁾	The Company’s original development plans for the Pavilion at Market East are under review. The Company retains a 50% interest in the partnership.

Redevelopment Activity⁽¹⁾


NAME OF PROJECT	LOCATION	PROPERTY TYPE	TOTAL PROJECTED PROPERTY GLA (sq ft) ⁽¹⁾	TOTAL PROJECTED COST ⁽¹⁾		PREIT’s SHARE OF COST		PREIT’s SHARE OF INVESTMENT TO DATE		EXPECTED STABILIZED NOI CAP		CONST START DATE	DATE OF INITIAL OCCUPANCY
The Mall at Prince Georges	Hyattsville, MD	Enclosed Mall	893,274	$	24,146,000	$	18,000,000	$	15,647,872	12.0	%	2Q03	4Q04
Echelon Mall ⁽²⁾	Voorhees, NJ	Enclosed Mall	1,187,631				13,500,000		790,657	11.0	%	2Q05	2Q06
Capital City	Camp Hill, PA	Enclosed Mall	636,000		11,319,400		11,319,400		82,789	11.1	%	1Q05	3Q05
New River Valley	Christiansburg, VA	Enclosed Mall	442,133		11,232,000		11,232,000		5,442	10.4	%	3Q05	1Q06
Patrick Henry Mall ⁽³⁾	Newport News, VA	Enclosed Mall	712,371		25,700,000		25,700,000		163,752	10.0	%	1Q05	4Q05

Total Redevelopment Activity			3,871,409	$	72,397,400	$	79,751,400	$	16,690,512	10.8	%


NAME OF PROJECT	EXPECTED DATE OF COMPLETION	STABILIZED OPERATIONS DATE	STATUS	% COMP.		% LEASED		% OCCUPIED		ANCHORS	PREIT’s SHARE
The Mall at Prince Georges	4Q05	4Q05		87	%	65	%	65	%	Target	100	%
Echelon Mall ⁽²⁾				6	%	0	%	0	%	Wal- Mart ⁽⁴⁾	100	%
Capital City	1Q06	1Q06	Construction	1	%	0	%	0	%	Food Court	100	%
New River Valley	1Q06	1Q06		0	%	0	%	0	%	Regal Cinema	100	%
Patrick Henry Mall ⁽³⁾	1Q06	1Q06		0	%	49	%	0	%	Dick’s Sporting Goods, Borders	100	%
Total Redevelopment Activity

⁽¹⁾	GLA and total project cost include tenants that purchased their respective land; therefore, the % leased and occupied will also include these tenants.

⁽²⁾	Wal-Mart committed to the redevelopment plans at Echelon Mall. See PREIT’s press release from 7/14/04.

⁽³⁾	Dick’s Sporting Goods committed to the redevelopment plans at Patrick Henry Mall. See PREIT’s press release from 8/05/04.

PAGE 24

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

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


	Number of Stores			GLA of Stores
Tenant	Fixed Rent	Percentage Rent In Lieu of Fixed Rent or Common Area Costs ⁽¹⁾	Total	Fixed Rent	Percentage Rent In Lieu of Fixed Rent or Common Area Costs ⁽¹⁾	Total	Annualized Base Rent		PREIT’s share of Annualized Base Rent⁽²⁾			Percent of PREIT’s Total Retail Base Rent
Gap, Inc./Old Navy	52	4	56	636,249	43,163	679,412	$	13,163,202	$	12,343,892		4.16	%
The Limited Stores, Inc.	80	15	95	497,242	56,441	553,683		11,497,771		11,014,889		3.71	%
JC Penney	27	4	31	2,330,789	549,789	2,880,578		7,481,830		7,350,724		2.48	%
Footlocker, Inc.	66	3	69	356,006	9,139	365,145		6,446,712		6,134,775		2.07	%
Sears	26	3	29	2,722,832	412,236	3,135,068		5,778,919		5,623,188		1.90	%
Zales	85	0	85	70,742		70,742		5,263,235		5,052,461		1.70	%
Hallmark Cards, Inc.	56	2	58	199,176	8,286	207,462		4,535,976		4,400,941		1.48	%
Sterling Jewelers, Inc. (Kay Jewelers)	40	0	40	55,664		55,664		3,770,248		3,582,748		1.21	%
American Eagle Outfitters	29	1	30	140,187	3,800	143,987		3,480,920		3,347,342		1.13	%
Borders	32	1	33	181,376	3,725	185,101		3,519,026		3,293,128		1.11	%
Trans World Entertainment	31	0	31	145,290		145,290		3,293,291		3,153,407		1.06	%
Regis Corp.	85	0	85	101,005		101,005		3,046,284		2,989,700		1.01	%
Bon-Ton	15	1	16	1,077,982	60,916	1,138,898		2,943,869		2,943,869		0.99	%
Boscov’s	6	1	7	1,130,706	178,000	1,308,706		3,137,572		2,695,972		0.91	%
Kay Bee Toys ⁽⁴⁾	30	2	32	133,438	6,549	139,987		2,822,006		2,681,537		0.90	%
Sun Capital Partners	27	1	28	87,864	5,331	93,195		2,737,710		2,654,130		0.89	%
Charming Shoppes, Inc.	29	1	30	188,336	5,204	193,540		2,737,008		2,597,970		0.88	%
Shoe Show, Inc.	32	0	32	155,180		155,180		2,596,754		2,522,715		0.85	%
Finish Line	24	1	25	119,599	5,960	125,559		2,521,496		2,521,496		0.85	%
Payless Shoe Source	39	6	45	124,268	19,607	143,875		2,657,526		2,506,099		0.84	%

Total Top 20 Tenants	811	46	857	10,453,931	1,368,146	11,822,077		93,431,355		89,410,983		30.13	%

Total Retail Leased			3,447			23,119,817	$	290,953,915	$	296,712,124	⁽³⁾	100.00	%

⁽¹⁾	Income from lease(s) in which tenant pays percentage rent in lieu of fixed rent or common area costs are not included in annualized base rent.

⁽²⁾	Includes PREIT’s proportionate share of tenant rents from partnership properties based on PREIT’s ownership percentage in the respective partnerships.

⁽³⁾	PREIT’s share of annualized base rent is derived by annualizing 4th quarter base rent from continuing operations. Straight line rent is not included in the base rent figures.

⁽⁴⁾	Kay Bee Toys filed for bankruptcy protection (Chapter 11) in January 2004.

PAGE 25

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

Retail Lease Expiration Schedule - Anchors⁽¹⁾


Year	Leases	Gross Leasable Area			Annualized Base Rent
Lease Expiration Year	Number of Leases Expiring	Expiring GLA	Percent of Total		Rent in Expiring Year		PREIT’s Share of Rent in Expiring Year ⁽³⁾		Percent of Total (PREIT’s Share)		Average Expiring Base Rent psf
Prior ⁽²⁾	1	85,483	0.73	%	$	188,400	$	188,400	0.50	%	$	2.20
2004	0	—	0.00	%		—		—	0.00	%		N/P
2005	9	694,960	5.96	%		2,389,328		2,389,328	6.37	%		3.44
2006	17	1,261,014	10.81	%		3,143,088		3,143,088	8.38	%		2.49
2007	8	814,155	6.98	%		1,979,424		1,969,524	5.25	%		2.43
2008	15	1,070,427	9.17	%		3,033,689		3,033,689	8.09	%		2.83
2009	13	1,050,150	9.00	%		3,543,079		2,578,374	6.88	%		3.37
2010	17	1,719,171	14.73	%		5,887,787		5,887,787	15.70	%		3.42
2011	8	667,171	5.72	%		3,545,677		2,422,862	6.46	%		5.31
2012	3	302,710	2.59	%		512,783		475,902	1.27	%		1.69
2013	6	426,339	3.65	%		2,857,610		2,857,610	7.62	%		6.70
2014	4	418,052	3.58	%		1,718,840		1,718,840	4.58	%		4.11
Thereafter	24	3,159,623	27.08	%		12,532,309		10,832,520	28.89	%		3.97

Totals:	125	11,669,255	100	%	$	41,332,014	$	37,497,924	100	%	$	3.54

⁽¹⁾	Includes only Owned Anchor space.

⁽²⁾	Includes all tenant leases which have already expired and are on a Month to Month basis.

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

PAGE 26

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

Retail Lease Expiration Schedule - Non-Anchors⁽¹⁾


Year	Leases	Gross Leasable Area			Annualized Base Rent
Lease Expiration Year	Number of Leases Expiring	Expiring GLA	Percent of Total		Rent in Expiring Year		PREIT’s Share of Rent in Expiring Year ⁽³⁾		Percent of Total (PREIT’s Share)		Average Expiring Base Rent psf
Prior ⁽²⁾	192	574,303	5.02	%	$	10,957,740	$	10,547,366	4.35	%	$	19.08
2004	26	70,065	0.61	%		1,046,833		960,435	0.40	%		14.94
2005	389	857,881	7.49	%		20,167,698		18,986,259	7.82	%		23.51
2006	435	1,210,257	10.57	%		27,289,280		25,846,237	10.65	%		22.55
2007	413	1,164,178	10.17	%		26,160,317		24,837,725	10.24	%		22.47
2008	347	1,083,355	9.46	%		25,401,509		24,455,707	10.08	%		23.45
2009	355	983,930	8.59	%		25,126,725		24,436,423	10.07	%		25.54
2010	334	1,238,668	10.82	%		28,134,815		27,072,279	11.16	%		22.71
2011	243	1,156,825	10.10	%		26,315,471		23,249,177	9.58	%		22.75
2012	201	829,884	7.25	%		20,835,671		19,060,305	7.86	%		25.11
2013	170	558,898	4.88	%		14,713,587		13,808,663	5.69	%		26.33
2014	126	521,395	4.55	%		12,944,042		11,198,046	4.61	%		24.83
Thereafter	91	1,200,923	10.49	%		21,555,616		18,190,085	7.50	%		17.95

Totals:	3,322	11,450,562	100	%	$	260,649,304	$	242,648,707	100	%	$	22.76

⁽¹⁾	Includes only Owned Non-Anchor space.

⁽²⁾	Includes all tenant leases which have already expired and are on a Month to Month basis.

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

PAGE 27

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

Leasing Activity Summary

RETAIL


New Lease	Number	GLA	Average Previous Base Rent psf		Average New Base Rent psf		Increase/ Decrease in Base Rent psf		Annualized Tenant Improvements psf ⁽¹⁾		Annualized Leasing Commissions psf ⁽¹⁾⁽²⁾		TOTAL Annualized Costs of Leasing psf ⁽¹⁾⁽²⁾
Previously Leased Space:
1st Quarter	13	32,324	$	18.76	$	24.84	$	6.08	$	1.76	$	—	$	1.76
2nd Quarter	17	42,013		24.59		32.96		8.37		2.50		—		2.50
3rd Quarter	32	67,026		31.86		35.34		3.48		4.00		—		4.00
4th Quarter	25	50,887		27.98		29.41		1.43		1.27		—		1.27

Total or Average	87	192,250	$	27.04	$	31.48	$	4.44	$	2.57	$	—	$	2.57

Previously Vacant Space:
1st Quarter	12	26,926	$	—	$	23.40	$	23.40	$	1.08	$	—	$	1.08
2nd Quarter	22	36,904		—		27.35		27.35		1.35		—		1.35
3rd Quarter	34	102,111		—		20.97		20.97		1.04		—		1.04
4th Quarter	27	52,280		—		29.36		29.36		2.78				2.78

Total or Average	95	218,221		—	$	24.36	$	24.36	$	1.51	$	—	$	1.51

Renewal ⁽³⁾	Number	GLA	Average Previous Base Rent psf		Average New Base Rent psf		Increase/ Decrease in Base Rent psf		Annualized Tenant Improvements psf ⁽¹⁾		Annualized Leasing Commissions psf ⁽¹⁾⁽²⁾		TOTAL Annualized Costs of Leasing psf ⁽¹⁾⁽²⁾
1st Quarter ⁽⁴⁾	60	353,520	$	12.09	$	13.40	$	1.31	$	—	$	—	$	—
2nd Quarter	80	178,337		21.69		22.57		0.88		—				—
3rd Quarter ⁽⁵⁾	94	500,163		12.79		13.19		0.40		0.08				0.08
4th Quarter ⁽⁶⁾	77	591,213		10.86		11.60		0.74		0.01				0.01

Total or Average	311	1,623,233	$	12.91	$	13.69	$	0.77	$	0.03	$	—	$	0.03

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

⁽²⁾	External commissions only.

⁽³⁾	This category includes expansions, relocations, lease extensions and modifications.

⁽⁴⁾	Includes an anchor lease of 176,834 square feet for a base rent of $1.20 per square foot. The other 59 renewal leases with 176,686 had an average previous base rent psf of $22.99 and an average new base rent psf of $25.61 representing an increase of $2.62 in base rent psf.

⁽⁵⁾	Includes an anchor lease of 91,164 square feet for a base rent of $1.86 per square foot. The other 93 renewal leases with 408,999 square feet had an average previous base rent psf of $15.23 and an average new base rent psf of $15.71 representing an increase of $0.48 in base rent psf.

⁽⁶⁾	Includes five anchor leases of 357,219 square feet for an average base rent of $5.66 per square foot. The other 72 renewal leases with 233,994 square feet with an average new base rent psf of $20.67 representing an increase of $1.87 in base rent psf.

PAGE 28

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

Capital Expenditures


	Q4 04 (3 months ended December 31, 2004)
Retail	Wholly Owned		Partnerships		Total
New development projects	$	1,687,462	$	38,908	$	1,726,370
Redevelopment projects with incremental GLA and/or Anchor Replacement		1,815,231		791,462		— 2,606,693
Renovation with no incremental GLA		144,777				144,777
Tenant allowances		9,011,402		152,713		9,164,115
Operational capital expenditures at properties:						—
CAM expenditures		2,401,116				2,401,116
Non-CAM expenditures		1,202,100		241,321		1,443,421

Subtotal operational capital expenditures at properties	$	3,603,216	$	241,321	$	3,844,537

Total	$	16,262,088	$	1,224,404	$	17,486,492

PAGE 29

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

Capital Expenditures


	CY 2004 (12 months ended December 31, 2004)
Retail	Wholly Owned		Partnerships		Total
New development projects	$	2,306,274	$	38,908	$	2,345,182
Redevelopment projects with incremental GLA and/or Anchor Replacement		15,310,881		791,462		— 16,102,343
Renovation with no incremental GLA		162,247		—		162,247
Tenant allowances		11,368,740		291,548		11,660,288
Operational capital expenditures at properties:						—
CAM expenditures		4,920,711				4,920,711
Non-CAM expenditures		3,549,239		273,432		3,822,671

Subtotal operational capital expenditures at properties	$	8,469,950	$	273,432	$	8,743,382

Total	$	37,618,092	$	1,395,350	$	39,013,442

PAGE 30

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

Enclosed Malls

(Includes Only Owned Space)


	Q404								% Change								Q403
	Total w/ Anchor % Leased		Total w/Anchor % Available		In-Line only (Non- Anchor) % Leased		In-Line (Non- Anchor) % Available		Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non- Anchor) % Leased		In-Line (Non- Anchor) % Available		Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non- Anchor) % Leased		In-Line (Non- Anchor) % Available
Beaver Valley Mall	89.0	%	11.0	%	76.5	%	23.5	%	-1.1	%	1.1	%	-2.3	%	2.3	%	90.1	%	9.9	%	78.7	%	21.3	%
Capital City	98.6	%	1.4	%	97.5	%	2.5	%	-0.8	%	0.8	%	-1.3	%	1.3	%	99.3	%	0.7	%	98.8	%	1.2	%
Chambersburg Mall	92.3	%	7.7	%	83.5	%	16.5	%	-1.4	%	1.4	%	-3.0	%	3.0	%	93.7	%	6.3	%	86.6	%	13.4	%
Cherry Hill Mall	92.5	%	7.5	%	92.5	%	7.5	%	-1.1	%	1.1	%	-1.1	%	1.1	%	93.6	%	6.4	%	93.6	%	6.4	%
Crossroads Mall	95.1	%	4.9	%	88.5	%	11.5	%	0.5	%	-0.5	%	1.2	%	-1.2	%	94.6	%	5.4	%	87.4	%	12.6	%
Dartmouth Mall	96.4	%	3.6	%	94.1	%	5.9	%	15.1	%	-15.1	%	1.0	%	-1.0	%	81.4	%	18.6	%	93.1	%	6.9	%
Echelon Mall	37.1	%	62.9	%	63.7	%	36.3	%	-4.1	%	4.1	%	-7.0	%	7.0	%	41.2	%	58.8	%	70.7	%	29.3	%
Exton Square Mall	94.1	%	5.9	%	87.0	%	13.0	%	-0.1	%	0.1	%	-0.3	%	0.3	%	94.2	%	5.8	%	87.3	%	12.7	%
Francis Scott Key Mall	95.9	%	4.1	%	91.6	%	8.4	%	-0.2	%	0.2	%	-0.5	%	0.5	%	96.1	%	3.9	%	92.1	%	7.9	%
Jacksonville Mall	97.8	%	2.2	%	95.6	%	4.4	%	-0.6	%	0.6	%	-1.3	%	1.3	%	98.5	%	1.5	%	96.9	%	3.1	%
Laurel Mall	96.2	%	3.8	%	89.8	%	10.2	%	-2.2	%	2.2	%	-5.7	%	5.7	%	98.3	%	1.7	%	95.5	%	4.5	%
Lehigh Valley Mall	91.5	%	8.5	%	87.7	%	12.3	%	-0.3	%	0.3	%	-0.4	%	0.4	%	91.8	%	8.2	%	88.1	%	11.9	%
Logan Valley Mall	97.9	%	2.1	%	95.0	%	5.0	%	-0.2	%	0.2	%	-0.5	%	0.5	%	98.1	%	1.9	%	95.5	%	4.5	%
Lycoming Mall	89.6	%	10.4	%	79.8	%	20.2	%	-2.3	%	2.3	%	-4.4	%	4.4	%	91.9	%	8.1	%	84.2	%	15.8	%
Magnolia Mall	93.9	%	6.1	%	84.5	%	15.5	%	-0.3	%	0.3	%	-0.6	%	0.6	%	94.2	%	5.8	%	85.1	%	14.9	%
Moorestown Mall	94.1	%	5.9	%	86.7	%	13.3	%	-2.1	%	2.1	%	-4.7	%	4.7	%	96.2	%	3.8	%	91.4	%	8.6	%
New River Valley Mall	76.7	%	23.3	%	81.5	%	18.5	%	-17.8	%	17.8	%	-5.9	%	5.9	%	94.5	%	5.5	%	87.4	%	12.6	%
Nittany Mall	93.5	%	6.5	%	86.8	%	13.2	%	-1.0	%	1.0	%	-1.9	%	1.9	%	94.4	%	5.6	%	88.7	%	11.3	%
North Hanover Mall	93.4	%	6.6	%	81.8	%	18.2	%	-0.3	%	0.3	%	-0.5	%	0.5	%	93.7	%	6.3	%	82.3	%	17.7	%
Orlando Fashion Square	90.7	%	9.3	%	79.2	%	20.8	%	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Palmer Park Mall	99.2	%	0.8	%	97.2	%	2.8	%	0.7	%	-0.7	%	2.2	%	-2.2	%	98.5	%	1.5	%	95.0	%	5.0	%
Patrick Henry Mall	99.3	%	0.7	%	98.4	%	1.6	%	0.2	%	-0.2	%	0.5	%	-0.5	%	99.1	%	0.9	%	98.0	%	2.0	%
Phillipsburg Mall	92.6	%	7.4	%	82.6	%	17.4	%	17.8	%	-17.8	%	5.5	%	-5.5	%	74.8	%	25.2	%	77.0	%	23.0	%
Plymouth Meeting	73.1	%	26.9	%	89.4	%	10.6	%	-0.7	%	0.7	%	-1.3	%	1.3	%	73.8	%	26.2	%	90.7	%	9.3	%
Schuylkill Mall	76.5	%	23.5	%	69.3	%	30.7	%	-0.7	%	0.7	%	-1.4	%	1.4	%	77.2	%	22.8	%	70.7	%	29.3	%
South Mall	97.3	%	2.7	%	94.9	%	5.1	%	1.6	%	-1.6	%	3.0	%	-3.0	%	95.7	%	4.3	%	91.9	%	8.1	%
The Gallery at Market East	90.6	%	9.4	%	90.6	%	9.4	%	-4.0	%	4.0	%	-4.0	%	4.0	%	94.6	%	5.4	%	94.6	%	5.4	%
The Gallery II at Market East	81.5	%	18.5	%	70.2	%	29.8	%	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
The Mall at Prince Georges	97.1	%	2.9	%	93.2	%	6.8	%	8.4	%	-8.4	%	0.2	%	-0.2	%	88.8	%	11.2	%	93.0	%	7.0	%
Uniontown Mall	96.0	%	4.0	%	89.9	%	10.1	%	-0.1	%	0.1	%	-0.2	%	0.2	%	96.1	%	3.9	%	90.2	%	9.8	%
Valley Mall	99.3	%	0.7	%	98.8	%	1.2	%	-0.1	%	0.1	%	-0.1	%	0.1	%	99.4	%	0.6	%	98.9	%	1.1	%
Valley View Mall	96.3	%	3.7	%	94.7	%	5.3	%	1.6	%	-1.6	%	2.2	%	-2.2	%	94.7	%	5.3	%	92.6	%	7.4	%
Viewmont Mall	99.3	%	0.7	%	98.3	%	1.7	%	0.3	%	-0.3	%	0.8	%	-0.8	%	99.1	%	0.9	%	97.5	%	2.5	%
Washington Crown Center	94.0	%	6.0	%	88.9	%	11.1	%	1.0	%	-1.0	%	1.9	%	-1.9	%	93.0	%	7.0	%	87.1	%	12.9	%
Willow Grove Park	95.1	%	4.9	%	91.8	%	8.2	%	-1.1	%	1.1	%	-1.8	%	1.8	%	96.2	%	3.8	%	93.7	%	6.3	%
Wiregrass Mall	83.8	%	16.2	%	83.8	%	16.2	%	0.9	%	-0.9	%	0.9	%	-0.9	%	82.9	%	17.1	%	82.9	%	17.1	%
Wyoming Valley Mall	97.9	%	2.1	%	94.1	%	5.9	%	0.0	%	0.0	%	-0.1	%	0.1	%	98.0	%	2.0	%	94.2	%	5.8	%

Enclosed Malls weighted average ⁽¹⁾	90.7	%	9.3	%	87.2	%	12.8	%	-0.2	%	0.2	%	-1.8	%	1.8	%	90.8	%	9.2	%	89.0	%	11.0	%

Wholly Owned Properties ⁽¹⁾	90.5	%	9.5	%	87.1	%	12.9	%	-0.1	%	0.1	%	-1.7	%	1.7	%	90.6	%	9.4	%	88.9	%	11.1	%
Partnership Properties	93.6	%	6.4	%	88.3	%	11.7	%	-1.1	%	1.1	%	-2.0	%	2.0	%	94.7	%	5.3	%	90.4	%	9.6	%

PRI-managed ⁽¹⁾	90.5	%	9.5	%	87.1	%	12.9	%	-0.1	%	0.1	%	-1.7	%	1.7	%	90.6	%	9.4	%	88.9	%	11.1	%
Non PRI-managed	93.6	%	6.4	%	88.3	%	11.7	%	-1.1	%	1.1	%	-2.0	%	2.0	%	94.7	%	5.3	%	90.4	%	9.6	%

Same Properties/Existing	86.5	%	13.5	%	85.9	%	14.1	%	-0.1	%	0.1	%	-2.1	%	2.1	%	86.6	%	13.4	%	88.0	%	12.0	%
New	93.3	%	6.7	%	88.1	%	11.9	%	-0.5	%	0.5	%	-1.6	%	1.6	%	93.9	%	6.1	%	89.8	%	10.2	%
Redevelopment Properties	97.1	%	2.9	%	93.2	%	6.8	%	8.4	%	-8.4	%	0.2	%	-0.2	%	88.8	%	11.2	%	93.0	%	7.0	%

Continuing Operations ⁽¹⁾	91.1	%	8.9	%	87.8	%	12.2	%	-0.2	%	0.2	%	-1.8	%	1.8	%	91.3	%	8.7	%	89.6	%	10.4	%
Discontinued Operations	76.5	%	23.5	%	69.3	%	30.7	%	-0.7	%	0.7	%	-1.4	%	1.4	%	77.2	%	22.8	%	70.7	%	29.3	%

⁽¹⁾	The Mall at Prince Georges is classified as a redevelopment property and is not included in the weighted average.

PAGE 31

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

Enclosed Malls

(Includes Non-Anchor Owned Space)


	Q404										% Change										Q403
	Avg Base Rent psf ⁽¹⁾		Avg % Rent psf ⁽¹⁾		Additional Charges psf		Avg Comp Sales psf ⁽²⁾		Occup. Cost Ratio		Avg Base Rent psf		Avg % Rent psf		Additional Charges psf		Avg Comp Sales psf		Occup. Cost Ratio		Avg Base Rent psf ⁽¹⁾		Avg % Rent psf ⁽¹⁾		Additional Charges psf		Avg Comp Sales psf⁽²⁾		Occup. Cost Ratio
Beaver Valley Mall	$	16.33	$	0.54	$	6.45	$	242	9.64	%	-4.2	%	17.3	%	22.8	%	1.7	%	0.1	%	$	17.05	$	0.46	$	5.25	$	238	9.57	%
Capital City		22.44		0.93		6.66		349	8.60	%	6.1	%	-0.2	%	16.1	%	-0.6	%	0.7	%		21.15		0.93		5.74		351	7.93	%
Chambersburg Mall		19.11		0.15		4.75		249	9.64	%	6.9	%	-20.6	%	-4.1	%	8.3	%	-0.4	%		17.88		0.19		4.95		230	10.01	%
Cherry Hill Mall		36.32		0.97		17.76		434	12.69	%	4.9	%	7.9	%	10.3	%	3.3	%	0.4	%		34.63		0.90		16.10		420	12.29	%
Crossroads Mall		16.56		0.84		5.69		257	8.99	%	-0.2	%	-28.8	%	-5.3	%	0.0	%	-0.3	%		16.59		1.18		6.01		257	9.25	%
Dartmouth Mall		20.72		1.47		6.90		407	7.15	%	7.9	%	2.8	%	-11.9	%	4.6	%	-0.2	%		19.20		1.43		7.83		389	7.31	%
Echelon Mall		22.64		0.02		9.45		217	14.80	%	-1.9	%	-90.9	%	-24.4	%	-3.6	%	-1.1	%		23.07		0.20		12.50		225	15.90	%
Exton Square Mall		35.72		0.69		14.51		375	13.58	%	0.8	%	29.8	%	11.5	%	1.1	%	0.4	%		35.44		0.53		13.01		371	13.20	%
Francis Scott Key Mall		20.96		0.49		6.80		279	10.12	%	0.1	%	23.9	%	10.2	%	3.3	%	-0.1	%		20.93		0.39		6.17		270	10.18	%
Jacksonville Mall		22.02		1.47		5.43		362	7.99	%	0.2	%	34.7	%	-5.0	%	5.2	%	-0.4	%		21.98		1.09		5.72		344	8.37	%
Laurel Mall		13.30		0.40		5.33		264	7.21	%	-3.7	%	-8.9	%	0.0	%	0.3	%	-0.2	%		13.81		0.43		5.33		263	7.45	%
Lehigh Valley Mall		31.47		0.60		9.69		448	9.32	%	4.4	%	-11.5	%	2.2	%	1.8	%	0.2	%		30.13		0.68		9.49		440	9.16	%
Logan Valley Mall		20.73		1.59		7.67		305	9.83	%	-2.9	%	23.1	%	16.2	%	2.7	%	0.0	%		21.36		1.29		6.60		297	9.85	%
Lycoming Mall		14.98		0.95		5.11		259	8.12	%	6.7	%	-26.8	%	6.8	%	6.1	%	-0.1	%		14.04		1.29		4.79		244	8.25	%
Magnolia Mall		24.83		0.39		9.54		307	11.32	%	3.2	%	-47.1	%	11.6	%	-1.3	%	0.6	%		24.07		0.74		8.55		311	10.72	%
Moorestown Mall		24.89		1.00		13.84		370	10.74	%	0.7	%	38.7	%	-2.1	%	12.1	%	-1.3	%		24.72		0.72		14.14		330	11.99	%
New River Valley Mall		19.85		0.66		4.32		249	9.97	%	3.9	%	37.2	%	-4.7	%	8.7	%	-0.6	%		19.10		0.48		4.54		229	10.54	%
Nittany Mall		20.56		0.82		6.78		253	11.13	%	3.7	%	14.3	%	-4.8	%	-1.2	%	0.3	%		19.84		0.72		7.12		256	10.81	%
North Hanover Mall		19.02		1.06		6.01		262	9.96	%	3.2	%	2.9	%	-1.6	%	-4.7	%	0.7	%		18.42		1.03		6.11		275	9.30	%
Orlando Fashion Square		27.45		0.16		14.40		297	14.14	%	N/A		N/A		N/A		N/A		N/A			N/A		N/A		N/A		N/A	N/A
Palmer Park Mall		22.49		1.29		9.14		340	9.68	%	4.3	%	1.4	%	-1.6	%	1.5	%	0.1	%		21.56		1.27		9.28		335	9.58	%
Patrick Henry Mall		31.43		2.38		11.02		441	10.17	%	3.2	%	38.8	%	9.8	%	6.5	%	0.0	%		30.46		1.72		10.04		414	10.20	%
Phillipsburg Mall		22.19		0.78		9.28		289	11.16	%	1.2	%	-12.5	%	-7.6	%	1.4	%	-0.4	%		21.92		0.89		10.05		285	11.53	%
Plymouth Meeting		19.21		0.28		7.91		254	10.79	%	0.7	%	-29.1	%	7.1	%	-3.8	%	0.6	%		19.08		0.40		7.39		264	10.18	%
Schuylkill Mall		10.43		0.23		3.20		212	6.54	%	0.7	%	-20.6	%	-2.2	%	8.2	%	-0.6	%		10.36		0.29		3.27		196	7.10	%
South Mall		14.96		0.35		3.58		270	7.00	%	19.6	%	-51.9	%	-16.5	%	-5.3	%	0.8	%		12.51		0.73		4.29		285	6.15	%
The Gallery at Market East		33.55		0.41		9.57		343	12.69	%	0.8	%	-43.2	%	4.0	%	-6.0	%	0.9	%		33.28		0.73		9.20		365	11.84	%
The Gallery II at Market East		29.92		1.71		3.68		421	8.39	%	N/A		N/A		N/A		N/A		N/A			N/A		N/A		N/A		N/A	N/A
The Mall at Prince Georges ⁽³⁾		24.86		1.60		13.15		373	10.62	%	6.5	%	20.4	%	26.8	%	-3.1	%	1.5	%		23.35		1.33		10.37		385	9.10	%
Uniontown Mall		14.85		1.07		3.54		247	7.88	%	7.2	%	6.9	%	-14.5	%	-2.8	%	0.4	%		13.85		1.00		4.14		254	7.47	%
Valley Mall		18.50		1.04		4.89		325	7.52	%	2.4	%	18.5	%	2.7	%	6.6	%	-0.3	%		18.07		0.88		4.76		305	7.77	%
Valley View Mall		22.81		0.65		13.34		309	11.91	%	5.1	%	153.7	%	28.9	%	1.6	%	1.3	%		21.71		0.25		10.36		304	10.63	%
Viewmont Mall		23.08		1.73		7.38		340	9.47	%	4.2	%	9.1	%	2.0	%	-1.2	%	0.5	%		22.15		1.59		7.23		344	9.00	%
Washington Crown Center		16.46		0.16		4.71		246	8.67	%	5.5	%	-77.7	%	22.6	%	0.0	%	0.5	%		15.60		0.69		3.84		246	8.19	%
Willow Grove Park		38.44		0.15		19.31		409	14.16	%	2.2	%	-30.6	%	-2.9	%	3.5	%	-0.5	%		37.60		0.22		19.88		395	14.61	%
Wiregrass Mall		21.29		0.85		6.89		269	10.79	%	2.6	%	108.2	%	-6.0	%	2.7	%	-0.1	%		20.75		0.41		7.33		262	10.87	%
Wyoming Mall		23.70		0.58		7.39		326	9.72	%	9.2	%	18.8	%	3.6	%	9.8	%	-0.2	%		21.70		0.49		7.14		297	9.87	%

Enclosed Malls weighted average ⁽¹⁾	$	23.28	$	0.78	$	8.69	$	324	10.11	%	4.1	%	3.3	%	4.2	%	2.8	%	0.1	%	$	22.37	$	0.76	$	8.34	$	315	9.99	%

Wholly Owned Properties ⁽¹⁾	$	23.11	$	0.80	$	8.72	$	319	10.24	%	4.2	%	3.9	%	4.4	%	3.2	%	0.1	%	$	22.18	$	0.77	$	8.36	$	309	10.14	%
Partnership Properties	$	25.73	$	0.54	$	8.31	$	420	8.24	%	3.4	%	-10.7	%	2.0	%	1.9	%	0.1	%	$	24.87	$	0.60	$	8.15	$	412	8.16	%

PRI-managed ⁽¹⁾	$	23.11	$	0.80	$	8.72	$	319	10.24	%	4.2	%	3.9	%	4.4	%	3.2	%	0.1	%	$	22.18	$	0.77	$	8.36	$	309	10.14	%
Non PRI-managed	$	25.73	$	0.54	$	8.31	$	420	8.24	%	3.4	%	-10.7	%	2.0	%	1.9	%	0.1	%	$	24.87	$	0.60	$	8.15	$	412	8.16	%

Same Properties/Existing	$	27.04	$	0.63	$	11.30	$	354	10.99	%	2.2	%	-1.6	%	1.9	%	2.0	%	0.0	%	$	26.45	$	0.64	$	11.09	$	347	10.99	%
New	$	20.59	$	0.89	$	6.83	$	302	9.37	%	7.8	%	4.7	%	11.2	%	4.8	%	0.3	%	$	19.11	$	0.85	$	6.14	$	288	9.05	%
Redevelopment Properties	$	24.86	$	1.60	$	13.15	$	373	10.62	%	6.5	%	20.4	%	26.8	%	-3.1	%	1.5	%	$	23.35	$	1.33	$	10.37	$	385	9.10	%

Continuing Operations ⁽¹⁾	$	23.60	$	0.80	$	8.83	$	326	10.20	%	4.0	%	3.4	%	4.2	%	2.6	%	0.1	%	$	22.69	$	0.77	$	8.48	$	317	10.06	%
Discontinued Operations	$	10.43	$	0.23	$	3.20	$	212	6.54	%	0.7	%	-20.6	%	-2.2	%	8.2	%	-0.6	%	$	10.36	$	0.29	$	3.27	$	196	7.10	%

⁽¹⁾	Base rent is actual for Q404. Additional charges and % rent are projections for 2004.

⁽²⁾	Average comparable sales for Q403 are actual.

⁽³⁾	The Mall at Prince Georges is classified as a redevelopment property and is not included in the weighted average.

PAGE 32

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)


Power Centers
(Includes Non-Anchor Owned Space)

	Q404						% Change						Q403
	Avg Base Rent psf ⁽¹⁾		Avg % Rent psf ⁽¹⁾		Additional Charges psf		Avg Base Rent psf		Avg % Rent psf		Additional Charges psf		Avg Base Rent psf ⁽¹⁾		Avg % Rent psf ⁽¹⁾		Additional Charges psf
Christiana Power Center	$	20.52	$	—	$	1.99	4.8	%	N/A		2.3	%	$	19.59	$	—	$	1.95
Creekview Shopping Center		14.37		—		2.62	0.2	%	N/A		-8.9	%		14.33		—		2.87
Northeast Tower Center		14.53		—		3.31	8.2	%	N/A		-15.5	%		13.43		—		3.91
Paxton Towne Centre		16.12		—		2.67	0.1	%	N/A		2.0	%		16.10		—		2.62
The Court at Oxford Valley		15.37		—		3.01	1.5	%	-100.0	%	-20.2	%		15.14		0.03		3.77
Red Rose Commons		13.86		0.09		2.50	2.1	%	412.3	%	-13.6	%		13.57		0.02		2.89
Whitehall Mall		10.69		0.27		3.18	-0.3	%	-34.1	%	1.9	%		10.72		0.41		3.12
Metroplex Shopping Center		17.88		—		3.58	-1.4	%	N/A		3.8	%		18.13		—		3.45

Power Centers weighted average	$	15.44	$	0.05	$	2.97	1.5	%	-20.5	%	-6.5	%	$	15.22	$	0.06	$	3.17

Wholly Owned Properties	$	16.17	$	—	$	2.68	3.6	%	N/A		-7.8	%	$	15.61	$	—	$	2.90
Partnership Properties	$	15.04	$	0.07	$	3.13	0.4	%	-22.5	%	-6.2	%	$	14.98	$	0.09	$	3.33

PRI-managed	$	16.17	$	—	$	2.68	3.6	%	N/A		-7.8	%	$	15.61	$	—	$	2.90
Non PRI-managed	$	15.04	$	0.07	$	3.13	0.4	%	-22.5	%	-6.2	%	$	14.98	$	0.09	$	3.33

Same Properties/Existing	$	15.44	$	0.05	$	2.97	1.5	%	-20.5	%	-6.5	%	$	15.22	$	0.06	$	3.17

New		N/A		N/A		N/A	N/A		N/A		N/A			N/A		N/A		N/A
Redevelopment Properties		N/A		N/A		N/A	N/A		N/A		N/A			N/A		N/A		N/A

⁽¹⁾	Base rent is actual for Q404. Additional charges and % rent are projections for 2004.


	Occupancy
	Q404								Change in % Occupancy								Q403
	Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non- Anchor) % Leased		In-Line (Non- Anchor) % Available		Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non-Anchor) % Leased		In-Line (Non- Anchor) % Available		Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non-Anchor) % Leased		In-Line (Non- Anchor) % Available
Christiana Power Center	100.0	%	0.0	%	100.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	100.0	%	0.0	%	100.0	%	0.0	%
Creekview Shopping Center	100.0	%	0.0	%	100.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	100.0	%	0.0	%	100.0	%	0.0	%
Northeast Tower Center	89.7	%	10.3	%	75.4	%	24.6	%	-10.3	%	10.3	%	-24.6	%	24.6	%	100.0	%	0.0	%	100.0	%	0.0	%
Paxton Towne Centre	92.1	%	7.9	%	87.9	%	12.1	%	0.0	%	0.0	%	0.0	%	0.0	%	92.1	%	7.9	%	87.9	%	12.1	%
The Court at Oxford Valley	100.0	%	0.0	%	100.0	%	0.0	%	2.9	%	-2.9	%	4.7	%	-4.7	%	97.1	%	2.9	%	95.3	%	4.7	%
Red Rose Commons	99.2	%	0.8	%	99.2	%	0.8	%	0.0	%	0.0	%	0.0	%	0.0	%	99.2	%	0.8	%	99.2	%	0.8	%
Whitehall Mall	97.4	%	2.6	%	94.0	%	6.0	%	-0.3	%	0.3	%	-0.7	%	0.7	%	97.6	%	2.4	%	94.7	%	5.3	%
Metroplex Shopping Center	100.0	%	0.0	%	100.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	100.0	%	0.0	%	100.0	%	0.0	%

Power Centers weighted average	96.8	%	3.2	%	95.0	%	5.0	%	-1.1	%	1.1	%	-1.7	%	1.7	%	97.9	%	2.1	%	96.7	%	3.3	%

Wholly Owned Properties	93.9	%	6.1	%	88.9	%	11.1	%	-3.4	%	3.4	%	-6.2	%	6.2	%	97.3	%	2.7	%	95.1	%	4.9	%
Partnership Properties	99.1	%	0.9	%	98.6	%	1.4	%	0.7	%	-0.7	%	1.0	%	-1.0	%	98.4	%	1.6	%	97.6	%	2.4	%

PRI-managed	93.9	%	6.1	%	88.9	%	11.1	%	-3.4	%	3.4	%	-6.2	%	6.2	%	97.3	%	2.7	%	95.1	%	4.9	%
Non PRI-managed	99.1	%	0.9	%	98.6	%	1.4	%	0.7	%	-0.7	%	1.0	%	-1.0	%	98.4	%	1.6	%	97.6	%	2.4	%

Same Properties /Existing	96.8	%	3.2	%	95.0	%	5.0	%	-1.1	%	1.1	%	-1.7	%	1.7	%	97.9	%	2.1	%	96.7	%	3.3	%
New	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Redevelopment Properties	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A

PAGE 33

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)


Strip Centers
(Includes Non-Anchor Owned Space)

	Q404									% Change						Q403
	Avg Base Rent psf ⁽¹⁾			Avg % Rent psf ⁽¹⁾			Additional Charges psf			Avg Base Rent psf		Avg % Rent psf		Additional Charges psf		Avg Base Rent psf ⁽¹⁾		Avg % Rent psf ⁽¹⁾		Additional Charges psf
Crest Plaza Shopping Center	$	16.00		$	—		$	1.89		4.4	%	N/A		-30.6	%	$	15.32	$	—	$	2.72
Festival at Exton		16.97			—			3.56		1.6	%	N/A		-16.1	%		16.71		—		4.24
The Commons at Magnolia		13.18			—			1.87		2.2	%	-100.0	%	14.6	%		12.89		0.03		1.63
South Blanding Village		9.38			—			2.32		4.4	%	N/A		8.6	%		8.99		—		2.14
Springfield Park I & II		17.71			—			4.79		0.3	%	N/A		-7.9	%		17.66		—		5.21

Strip Centers weighted average	$	15.13		$	—		$	2.81		2.4	%	-100.0	%	-13.4	%	$	14.77	$	0.01	$	3.25

Wholly Owned Properties	$	14.75		$	—		$	2.52		3.0	%	-100.0	%	-14.3	%	$	14.32	$	0.01	$	2.94
Partnership Properties	$	17.71		$	—		$	4.79		0.3	%	N/A		-7.9	%	$	17.66	$	—	$	5.21

PRI-managed	$	15.13		$	—		$	2.81		2.4	%	-100.0	%	-13.4	%	$	14.77	$	0.01	$	3.25
Non PRI-managed		0.0	%		0.0	%		0.0	%	N/A		N/A		N/A		$	—	$	—	$	—

Same Properties/Existing	$	15.13		$	—		$	2.81		2.4	%	-100.0	%	-13.4	%	$	14.77	$	0.01	$	3.25
New		N/A			N/A			N/A		N/A		N/A		N/A			N/A		N/A		N/A
Redevelopment Properties		N/A			N/A			N/A		N/A		N/A		N/A			N/A		N/A		N/A

⁽¹⁾	Base rent is actual for Q404. Additional charges and % rent are projections for 2004.


	Occupancy
	Q404								Change in % Occupancy								Q403
	Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non- Anchor) % Leased		In-Line (Non- Anchor) % Available		Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non- Anchor) % Leased		In-Line (Non- Anchor) % Available		Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non- Anchor) % Leased		In-Line (Non- Anchor) % Available
Crest Plaza Shopping Center	98.1	%	1.9	%	96.4	%	3.6	%	12.3	%	-12.3	%	21.1	%	-21.1	%	85.8	%	14.2	%	75.3	%	24.7	%
Festival at Exton	94.0	%	6.0	%	89.7	%	10.3	%	-1.5	%	1.5	%	-2.6	%	2.6	%	95.5	%	4.5	%	92.3	%	7.7	%
The Commons at Magnolia	100.0	%	0.0	%	100.0	%	0.0	%	2.4	%	-2.4	%	4.7	%	-4.7	%	97.6	%	2.4	%	95.3	%	4.7	%
South Blanding Village	96.8	%	3.2	%	89.6	%	10.4	%	-0.6	%	0.6	%	-1.8	%	1.8	%	97.4	%	2.6	%	91.4	%	8.6	%
Springfield Park I & II	90.9	%	9.1	%	73.5	%	26.5	%	0.0	%	0.0	%	0.0	%	0.0	%	90.9	%	9.1	%	73.5	%	26.5	%
Strip Centers weighted average	95.7	%	4.3	%	90.6	%	9.4	%	2.2	%	-2.2	%	4.6	%	-4.6	%	93.5	%	6.5	%	86.0	%	14.0	%

Wholly Owned Properties	97.0	%	3.0	%	93.8	%	6.2	%	2.8	%	-2.8	%	5.4	%	-5.4	%	94.2	%	5.8	%	88.4	%	11.6	%
Partnership Properties	90.9	%	9.1	%	73.5	%	26.5	%	0.0	%	0.0	%	0.0	%	0.0	%	90.9	%	9.1	%	73.5	%	26.5	%

PRI-managed	95.7	%	4.3	%	90.6	%	9.4	%	2.2	%	-2.2	%	4.6	%	-4.6	%	93.5	%	6.5	%	86.0	%	14.0	%
Non PRI-managed	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A

Same Properties /Existing	95.7	%	4.3	%	90.6	%	9.4	%	2.2	%	-2.2	%	4.6	%	-4.6	%	93.5	%	6.5	%	86.0	%	14.0	%
New	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Redevelopment Properties	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A

PAGE 34

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)


Retail Portfolio
(Includes Non-Anchor Owned Space)

	Q404						% Change						Q403
	Avg Base Rent psf ⁽¹⁾		Avg % Rent psf ⁽¹⁾		Additional Charges psf ⁽¹⁾		Avg Base Rent psf ⁽¹⁾		Avg % Rent psf ⁽¹⁾		Additional Charges psf ⁽¹⁾		Avg Base Rent psf ⁽¹⁾		Avg % Rent psf ⁽¹⁾		Additional Charges psf ⁽¹⁾
Enclosed Malls weighted average	$	23.28	$	0.78	$	8.69	4.1	%	3.3	%	4.2	%	$	22.18	$	0.77	$	8.36
Power Centers weighted average	$	15.44	$	0.05	$	2.97	1.5	%	-20.5	%	-6.5	%	$	15.22	$	0.06	$	3.17
Strip Centers weighted average	$	15.13	$	—	$	2.81	2.4	%	-100.0	%	-13.4	%	$	14.77	$	0.01	$	3.25

Retail Portfolio weighted average ⁽²⁾	$	21.82	$	0.65	$	7.63	4.0	%	3.8	%	3.9	%	$	20.98	$	0.62	$	7.34

Wholly Owned Properties ⁽²⁾	$	22.44	$	0.73	$	8.16	4.4	%	4.7	%	4.4	%	$	21.50	$	0.69	$	7.82
Partnership Properties	$	18.62	$	0.22	$	4.87	1.3	%	-14.7	%	-2.5	%	$	18.38	$	0.26	$	5.00

PRI-managed ⁽²⁾	$	22.42	$	0.72	$	8.15	4.4	%	4.7	%	4.4	%	$	21.49	$	0.69	$	7.81
Non PRI-managed	$	18.64	$	0.23	$	4.87	1.3	%	-14.7	%	-2.4	%	$	18.39	$	0.27	$	4.99

Same Properties/Existing	$	22.94	$	0.42	$	8.36	2.0	%	-2.7	%	0.4	%	$	22.50	$	0.44	$	8.32
New	$	20.59	$	0.89	$	6.83	7.8	%	4.7	%	11.2	%	$	19.11	$	0.85	$	6.14
Redevelopment Properties	$	24.86	$	1.60	$	13.15	6.5	%	20.4	%	26.8	%	$	23.35	$	1.33	$	10.37

⁽¹⁾	Base rent is actual for Q404. Additional charges and % rent are projections for 2004.

⁽²⁾	The Mall at Prince Georges is classified as Redevelopment Property and is not included in the weighted average.

(Includes Only Owned Space)


	Occupancy
	Q404								Change in % Occupancy								Q403
	Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non- Anchor) % Leased		In-Line (Non- Anchor) % Available		Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non- Anchor) % Leased		In-Line (Non- Anchor) % Available		Total w/Anchor % Leased		Total w/Anchor % Available		In-Line only (Non- Anchor) % Leased		In-Line (Non- Anchor) % Available
Enclosed Malls weighted average	90.7	%	9.3	%	87.2	%	12.8	%	-0.2	%	0.2	%	-1.8	%	1.8	%	90.8	%	9.2	%	89.0	%	11.0	%
Power Centers weighted average	96.8	%	3.2	%	95.0	%	5.0	%	-1.1	%	1.1	%	-1.7	%	1.7	%	97.9	%	2.1	%	96.7	%	3.3	%
Strip Centers weighted average	95.7	%	4.3	%	90.6	%	9.4	%	2.2	%	-2.2	%	4.6	%	-4.6	%	93.5	%	6.5	%	86.0	%	14.0	%

Retail Portfolio weighted average ⁽¹⁾	91.6	%	8.4	%	88.4	%	11.6	%	-0.3	%	0.3	%	-1.7	%	1.7	%	91.8	%	8.2	%	90.1	%	9.9	%

Wholly Owned Properties ⁽¹⁾	90.8	%	9.2	%	87.4	%	12.6	%	-0.3	%	0.3	%	-1.9	%	1.9	%	91.1	%	8.9	%	89.3	%	10.7	%
Partnership Properties	96.6	%	3.4	%	94.4	%	5.6	%	-0.1	%	0.1	%	-0.1	%	0.1	%	96.6	%	3.4	%	94.5	%	5.5	%

PRI-managed ⁽¹⁾	90.8	%	9.2	%	87.3	%	12.7	%	-0.3	%	0.3	%	-1.9	%	1.9	%	91.1	%	8.9	%	89.2	%	10.8	%
Non PRI-managed	96.8	%	3.2	%	94.9	%	5.1	%	-0.1	%	0.1	%	-0.1	%	0.1	%	96.9	%	3.1	%	95.0	%	5.0	%

Same Properties/Existing	89.7	%	10.3	%	88.7	%	11.3	%	-0.2	%	0.2	%	-1.7	%	1.7	%	89.9	%	10.1	%	90.4	%	9.6	%
New	93.3	%	6.7	%	88.1	%	11.9	%	-0.5	%	0.5	%	-1.6	%	1.6	%	93.9	%	6.1	%	89.8	%	10.2	%
Redevelopment Properties	97.1	%	2.9	%	93.2	%	6.8	%	8.4	%	-8.4	%	0.2	%	-0.2	%	88.8	%	11.2	%	93.0	%	7.0	%

⁽¹⁾	The Mall at Prince Georges is classified as Redevelopment Property and is not included in the weighted average.

*	Westgate Anchor Pad consists of a 108,100 sf. Bon-Ton Store for which PREIT receives $307,003/yr ($2.84/sf) and is not included in the Occupancy and Rent reports.

PAGE 35

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

PREIT Services, LLC/ PREIT-RUBIN Inc.

PREIT Services, LLC and PREIT-RUBIN Inc. are the Trust’s arms for comprehensive development and management of retail and commercial properties. PREIT-RUBIN Inc. provides third party management for 15 properties representing approximately 4.0 million gross leasable square feet. PREIT-RUBIN Inc. also provides third party owners with a full complement of management, leasing, asset management and development services.

SUMMARY OF PORTFOLIO SERVICES


	December 31, 2004						September 30, 2004						NET GAIN (LOSS) IN CONTRACTS
	Retail		Office/ Industrial		TOTAL		Retail		Office/ Industrial		TOTAL		Retail				Office/ Industrial		TOTAL
	#	sq ft	#	sq ft	#	sq ft	#	sq ft	#	sq ft	#	sq ft	#		sq ft		#	sq ft	#		sq ft
Managed Portfolio
PREIT-Owned ⁽¹⁾	43	28,072,299	4	254,791	47	28,327,090	42	26,885,354	4	254,791	46	27,140,145	1		1,186,945		—	—	1		1,186,945
Non-PREIT Owned ⁽²⁾	10	2,621,455	3	757,238	13	3,378,693	11	2,770,188	3	757,238	14	3,527,426	(1	)	(148,733	)	—	—	(1	)	(148,733	)

TOTAL	53	30,693,754	7	1,012,029	60	31,705,783	53	29,655,542	7	1,012,029	60	30,667,571	—		1,038,212		—	—	—		1,038,212

Leased Portfolio
PREIT-Owned	—		—		—	—	—		—		—	—	—		—		—	—	—		—
Non-PREIT Owned	1	503,716	1	119,482	2	623,198	1	503,716	1	119,482	2	623,198	—		—		—	—	—		—

TOTAL	1	503,716	1	119,482	2	623,198	1	503,716	1	119,482	2	623,198	—		—		—	—	—		—

Asset Managed Portfolio
PREIT-Owned ⁽¹⁾	6	4,078,844	—	—	6	4,078,844	6	4,081,249	—	—	6	4,081,249	—		(2,405	)	—	—	—		(2,405	)
Non-PREIT Owned	—	—	—	—	—	—	—	—	—	—	—	—	—		—		—	—	—		—

TOTAL	6	4,078,844	—	—	6	4,078,844	6	4,081,249	—	—	6	4,081,249	—		(2,405	)	—	—	—		(2,405	)

Total Portfolio
PREIT-Owned	49	32,151,143	4	254,791	53	32,405,934	48	30,966,603	4	254,791	52	31,221,394	1		1,184,540		—	—	1		1,184,540
Non-PREIT Owned	11	3,125,171	4	876,720	15	4,001,891	12	3,273,904	4	876,720	16	4,150,624	(1	)	(148,733	)	—	—	(1	)	(148,733	)

TOTAL	60	35,276,314	8	1,131,511	68	36,407,825	60	34,240,507	8	1,131,511	68	35,372,018	—		1,035,807		—	—	—		1,035,807

⁽¹⁾	The increase in a result of the acquisition of Orlando Fashion Square in Orlando, Florida.

⁽²⁾	The decrease in a result of the sale of Fairfield Mall in Chicopee, Massachusetts

PAGE 36

Pennsylvania REIT

FLASH REPORT (December 31, 2004)

QUARTERLY COMPARISON

Financial Statement


							Q4 04 (3 months ended 12/31/04)											Q4 03 (3 months ended 12/31/03)
	Malls			Power and Strip Centers			Retail			Corporate/ Other Properties			TOTAL			% Change		Retail			Multifamily			Corporate/ Other Properties			TOTAL
Real Estate Revenues:
Same Store		48,107,345			9,872,159		$	57,979,504		$	102,689		$	58,082,193		-2.0	%	$	59,197,705		$	—		$	84,770		$	59,282,475
New		55,912,122			—			55,912,122			—			55,912,122		N/A			23,435,410			—			—			23,435,410
Redevelopment		4,614,269			—			4,614,269			—			4,614,269		N/A			3,805,221			—			—			3,805,221
Discontinued Operations		(270,922	)		—			(270,922	)		—			(270,922	)	-107.5	%		3,616,211			2,248			—			3,618,459

Total Real Estate Revenues		108,362,814			9,872,159			118,234,973			102,689			118,337,662		31.3	%		90,054,546			2,248			84,770			90,141,564

Operating Expenses:
Same Store		17,329,160			2,317,460			19,646,620			14,515			19,661,135		-6.4	%		21,003,277			—			2,890			21,006,167
New		19,843,851			—			19,777,668			—			19,777,668		N/A			7,649,713			—			—			7,649,713
Redevelopment		2,081,320			—			2,081,320			—			2,081,320		N/A			1,379,499			—			—			1,379,499
Discontinued Operations		(22,049	)		—			(20,766	)					(20,766	)	-101.3	%		1,581,762			14,504						1,596,266

Total Operating Expenses		39,232,282			2,317,460			41,484,842			14,515			41,499,357		31.2	%		31,614,251			14,504			2,890			31,631,645

NOI:
Same Store		30,778,185			7,554,699			38,332,884			88,174			38,421,058		0.4	%		38,194,428			—			81,880			38,276,308
New		36,068,271			—			36,134,454			—			36,134,454		N/A			15,785,697			—			—			15,785,697
Redevelopment		2,532,949			—			2,532,949			—			2,532,949		N/A			2,425,722			—			—			2,425,722
Discontinued Operations		(248,873	)		—			(250,156	)		—			(250,156	)	-112.4	%		2,034,449			(12,256	)					2,022,193

NOI		69,130,532			7,554,699			76,750,131			88,174			76,838,305		31.3	%		58,440,295			(12,256	)		81,880			58,509,919

OTHER INCOME (EXPENSES):
Management Company Revenue		—			—			—			4,072,413			4,072,413		11.2	%		—			—			3,662,141			3,662,141
Interest Income		—			—			—			161,323			161,323		-51.7	%		—			—			334,319			334,319
General & Administrative		—			—
Corporate Payroll and Benefits		—			—			—			(7,466,438	)		(7,466,438	)	-27.2	%		—			—			(10,261,792	)		(10,261,792	)
Other G&A Expenses		—			—			—			(3,725,032	)		(3,725,032	)	-51.0	%		—			—			(7,597,474	)		(7,597,474	)

EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION		69,130,532			7,554,699			76,750,131			(6,869,560	)		69,880,571		56.5	%		58,440,295			(12,256	)		(13,780,926	)		44,647,113

Interest Expense		(17,047,358	)		(1,916,563	)		(18,963,921	)		(1,890,539	)		(20,854,460	)	27.7	%		(15,298,177	)		—			(1,033,909	)		(16,332,086	)
Depreciation and Amortization		(23,111,852	)		(3,983,867	)		(27,095,719	)		(298,522	)		(27,394,241	)	41.7	%		(19,185,241	)		—			(153,990	)		(19,339,231	)
Gain (adjustment to gains) on Sale of Interests in RE								(45,001	)					(45,001	)	N/A			—			4,457,176			—			4,457,176
DISCONTINUED OPERATIONS
Income from Disposed Real Estate								—			—			—		N/A			—			—			—			—
Minority Interest of O.P. Unitholders								—			(23,513	)		(23,513	)	N/A			—			—			(580,392	)		(580,392	)
Gain (adjustment to gains) on Disposition of Discontinued Operations											—			—		N/A			—			194,441			—			194,441

TOTAL DISCONTINUED OPERATIONS		—			—			—			(23,513	)		(23,513	)	N/A			—			194,441			(580,392	)		(385,951	)

Minority Interest in Properties								(64,900	)		—			(64,900	)	-81.3	%		(346,548	)		—			—			(346,548	)
Minority Interest of O.P. Unit Holders								—			(2,333,949	)		(2,333,949	)	94.7	%		—			—			(1,198,594	)		(1,198,594	)

NET INCOME		28,971,322			1,654,269			30,645,490			(11,416,083	)		19,164,507		66.6	%		23,956,877			4,639,361			(16,747,811	)		11,501,879

Gain on Sale of Real Estate								45,001			—			45,001		N/A			—			(4,651,617	)		—			(4,651,617	)
Depreciation and Amor. of Real Estate		23,045,941			3,983,867			27,029,808			(52,460	)		26,977,348		-240.8	%		(19,148,187	)		—			(12,540	)		(19,160,727	)
Dividends on preferred shares											(3,403,125	)		(3,403,125	)	N/A			—			—			(1,533,000	)		(1,533,000	)
FFO Adjustments								—			2,357,462			2,357,462		-94.1	%		—			—			40,035,440			40,035,440

FFO		52,017,263			5,638,136			57,720,299			(12,514,206	)		45,141,193		72.3	%		4,808,690			(12,256	)		21,742,089			26,191,975

Adj. Straight Lining of Base Rents		(1,237,977	)		(136,785	)		(1,374,762	)		—			(1,374,762	)	30.3	%		(1,055,305	)		—			—			(1,055,305	)
Recurring Capital Expenditures								(3,989,314	)		—			(3,989,314	)	354.9	%		(876,942	)					—			(876,942	)
Tenant allowances								(9,164,115	)					(9,164,115	)	N/A			(1,265,392	)								(1,265,392	)
Amortization of debt premium								(4,811,196	)					(4,811,196	)	64.0	%		(2,933,065	)								(2,933,065	)
Amortization of above-and below market lease intangibles								115,172						115,172		N/A			167,000			—			—			167,000

FAD	$	50,779,286		$	5,501,351		$	38,496,084			(12,514,206	)	$	25,916,978		28.1	%	-$	1,155,014		-$	12,256			21,742,089		$	20,228,271

Total Dividends													$	21,782,545		40.2	%										$	15,534,398
Share Price (at close)													$	42.80		17.9	%										$	36.30
Weighted Average Number of Shares														35,818,787		24.4	%											28,786,801
WA number of Shares and O.P. Units														40,244,661		26.8	%											31,744,396
Net Income per Share (basic)													$	0.43		22.9	%										$	0.35
FFO/Share and O.P. Units													$	1.12		35.9	%										$	0.83
FAD/Share and O.P. Units													$	0.64		1.1	%										$	0.64
Dividend/Share and O.P. Units													$	0.54		0.0	%										$	0.54

Balance Sheet


							Q4 04											Q4 03
							Retail			Corporate/ Other Properties			Total			% Change		Retail			Multifamily		Corporate/ Other Properties			Total
Investment in Real Estate, at cost	$	2,336,629,574		$	313,078,795		$	2,649,708,369		$	25,861,672		$	2,675,570,041		5.1	%	$	2,515,861,018		$	0	$	29,845,672		$	2,545,706,690
Accumulated Depreciation		(135,017,071	)		(47,764,970	)		(182,782,041	)		(2,126,931	)		(184,908,972	)	68.0	%		(107,991,580	)		—		(2,076,771	)		(110,068,351	)
Advances to Partnerships		—			—			—			—			—		N/A			—			—		—			—
Other Assets		245,133,703			28,403,275			273,536,978			63,296,562			336,833,540		-7.3	%		295,585,275			—		67,949,016			363,534,291

Total Assets	$	2,446,746,206		$	293,717,100		$	2,740,463,306		$	87,031,303		$	2,827,494,609		1.0	%	$	2,703,454,713		$	0	$	95,717,917		$	2,799,172,630

Mortgage Notes		1,220,531,409			105,595,591		$	1,326,127,000		$	—		$	1,326,127,000		-5.0	%	$	1,396,262,538		$	0	$	—		$	1,396,262,538
Line of Credit		—			—			—			271,000,000			271,000,000		N/A			—			—		170,000,000			170,000,000
Acquisition Term Loan & Unsecured Line of Credit		—			—			—			—			—		N/A			—			—		—			—
Other Liabilities		45,547,446			5,723,480			51,270,926			42,661,764			93,932,690		-2.8	%		51,945,310			—		44,679,642			96,624,952

Total Liabilities	$	1,266,078,855		$	111,319,071		$	1,377,397,926		$	313,661,764		$	1,691,059,690		1.7	%	$	1,448,207,848		$	0	$	214,679,642		$	1,662,887,490

Minority Interest	$	3,584,992		$	0		$	3,584,992		$	128,383,925		$	131,968,917		17.1	%	$	8,590,979			—	$	104,060,548		$	112,651,527
Total Shareholders Equity		—			—			—			1,004,466,002			1,004,466,002		-1.9	%		—			—		1,023,633,613			1,023,633,613

Total Liabilities and Shareholder Equity	$	1,269,663,847		$	111,319,071		$	1,380,982,918		$	1,446,511,691		$	2,827,494,609		1.0	%	$	1,456,798,827		$	0	$	1,342,373,803		$	2,799,172,630


Ratios

													Q4 04										Change			Q4 03
NOI/Investment in Real Estate														2.9	%									0.6	%		2.3	%
Total Dividends/Total FFO														48.3	%									-11.1	%		59.3	%
Dividends/FFO per share														48.1	%									-17.3	%		65.4	%

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 44.

PAGE 37

Pennsylvania REIT

FLASH REPORT (December 31, 2004)

YEARLY COMPARISON

Financial Statement


	Malls			Power and Strip Centers			CY 2004 (12 months ended 12/31/04)											Malls			Power and Strip Centers			CY 2003 (12 months ended 12/31/03)
	Malls			Power and Strip Centers			Retail			Corporate/Other Properties			TOTAL			% Change		Malls			Power and Strip Centers			Retail			Multifamily			Corporate/Other Properties			TOTAL
Real Estate Revenues:
Same Store		46,188,648			40,144,766		$	86,333,414		$	394,477		$	86,727,891		3.0	%		45,168,070			38,709,019		$	83,877,089		$	—		$	339,018		$	84,216,107
New		325,792,348			1,312,989		$	327,105,337			—			327,105,337		N/A			107,031,270			—		$	107,031,270			—			—			107,031,270
Redevelopment		15,417,360			—		$	15,417,360			—			15,417,360		N/A			13,238,174			1,205,398		$	14,443,572			—			—			14,443,572
Discontinued Operations		17,205,690			448,530		$	17,654,220			—			17,654,220		-43.1	%		3,433,545			715,898		$	4,149,443			26,897,382			—			31,046,825

Total Real Estate Revenues		404,604,046			41,906,285			446,510,331			394,477			446,904,808		88.8	%		168,871,058			40,630,315			209,501,373			26,897,382			339,018			236,737,773

Operating Expenses:
Same Store		15,560,903			8,202,959		$	23,763,862			52,615			23,816,477		1.2	%		15,731,945			7,782,719		$	23,514,664			—			15,789			23,530,453
New		126,312,663			549,952		$	126,862,615			—			126,862,615		N/A			43,521,147			—		$	43,521,147			—			—			43,521,147
Redevelopment		5,449,154			—		$	5,449,154			—			5,449,154		N/A			4,617,421			459,170		$	5,076,591			—			—			5,076,591
Discontinued Operations		10,241,387			148,479		$	10,389,866						10,389,866		-26.7	%		1,521,075			225,500		$	1,746,575			12,430,545						14,177,120

Total Operating Expenses		157,564,107			8,901,390			166,465,497			52,615			166,518,112		92.9	%		65,391,588			8,467,389			73,858,977			12,430,545			15,789			86,305,311

NOI:
Same Store		30,627,745			31,941,807			62,569,552			341,862			62,911,414		3.7	%		29,436,125			30,926,300			60,362,425			—			323,229			60,685,654
New		199,479,685			763,037			200,242,722			—			200,242,722		N/A			63,510,123			—			63,510,123			—			—			63,510,123
Redevelopment		9,968,206			—			9,968,206			—			9,968,206		N/A			8,620,753			746,228			9,366,981			—			—			9,366,981
Discontinued Operations		6,964,303			300,051			7,264,354			—			7,264,354		-56.9	%		1,912,470			490,398			2,402,868			14,466,837						16,869,705

NOI		247,039,939			33,004,895			280,044,834			341,862			280,386,696		86.4	%		103,479,470			32,162,926			135,642,396			14,466,837			323,229			150,432,462

OTHER INCOME (EXPENSES):
Management Company Revenue		—			—			—			9,702,616			9,702,616		-11.6	%		—			—			—			—			10,973,015			10,973,015
Interest Income		—			—			—			1,026,116			1,026,116		15.8	%		—			—			—			—			885,975			885,975
General & Administrative		—			—														—			—
Corporate Payroll and Benefits		—			—			—			(30,057,014	)		(30,057,014	)	29.7	%		—			—			—			—			(23,168,976	)		(23,168,976	)
Other G&A Expenses		—			—			—			(14,612,911	)		(14,612,911	)	-11.5	%		—			—			—			—			(16,509,394	)		(16,509,394	)

EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION		247,039,939			33,004,895			280,044,834			(33,599,331	)		246,445,503		101.0	%		103,479,470			32,162,926			135,642,396			14,466,837			(27,496,151	)		122,613,082

Interest Expense		(69,354,061	)		(7,007,441	)		(76,361,502	)		(7,190,486	)		(83,551,988	)	59.6	%		(32,356,067	)		(6,884,843	)		(39,240,910	)		(5,652,058	)		(7,466,709	)		(52,359,677	)
Depreciation and Amortization		(90,387,057	)		(11,723,452	)		(102,110,509	)		(981,485	)		(103,091,994	)	126.5	%		(33,206,631	)		(9,320,488	)		(42,527,119	)		(2,454,834	)		(540,411	)		(45,522,364	)
Gain (adjustment to gains) on Sale of Interests in RE		—			1,484,182			1,484,182						1,484,182		N/A			—			1,111,692			1,111,692			15,087,618			—			16,199,310
DISCONTINUED OPERATIONS
Income from Disposed Real Estate								—			—			—		N/A									—			—			—			—
Minority Interest of O.P. Unit holders								—			(622,663	)		(622,663	)	N/A									—			—			(18,848,730	)		(18,848,730	)
Gain (adjustment to gains) on Disposition of Discontinued Operations											(550,000	)		(550,000	)	N/A												178,121,005			—			178,121,005

TOTAL DISCONTINUED OPERATIONS		—			—			—			(1,172,663	)		(1,172,663	)	N/A			—			—			—			178,121,005			(18,848,730	)		159,272,275

Minority Interest in Properties		(629,599	)					(629,599	)		—			(629,599	)	-27.2	%		(864,465	)					(864,465	)		—			—			(864,465	)
Minority Interest of O.P. Unit Holders								—			(5,695,811	)		(5,695,811	)	72.7	%								—			—			(3,298,010	)		(3,298,010	)

NET INCOME		87,298,821			15,758,184			102,427,406			(48,639,776	)		53,787,630		-72.6	%		37,916,772			17,069,287			54,121,594			199,568,568			(57,650,011	)		196,040,151

Gain on Sale of Real Estate								(1,484,182	)		550,000			(934,182	)	N/A									(1,111,692	)		(193,208,623	)		—			(194,320,315	)
Depreciation and Amor. of Real Estate		90,128,693			11,723,452			101,852,145			(209,840	)		101,642,305		127.2	%		33,169,577			9,320,488			42,490,065			2,454,834			(208,842	)		44,736,057
Dividends on preferred shares											(13,612,500	)		(13,612,500	)	N/A												—			(1,533,000	)		(1,533,000	)
FFO Adjustments								—			6,318,474			6,318,474		-71.5	%								—			—			22,146,740			22,146,740

FFO		177,427,514			27,481,636			202,795,369			(55,593,642	)		147,201,727		119.5	%		71,086,349			26,389,775			95,499,967			8,814,779			(37,245,113	)		67,069,633

Adj. Straight Lining of Base Rents		(4,682,948	)		(529,017	)		(5,211,965	)		—			(5,211,965	)	85.8	%		(2,039,421	)		(766,126	)		(2,805,547	)		—			—			(2,805,547	)
Recurring Capital Expenditures								(8,905,629	)		—			(8,905,629	)	311.8	%								(876,942	)		(1,285,473	)		—			(2,162,415	)
Tenant allowances								(11,660,288	)					(11,660,288	)	N/A									(1,265,392	)								(1,265,392	)
Amortization of debt premium								(19,353,621	)					(19,353,621	)	225.8	%								(5,940,175	)								(5,940,175	)
Amortization of above-and below market lease intangibles								707,192						707,192		N/A									404,462			—			—			404,462

FAD	$	172,744,566		$	26,952,619		$	158,371,058			(55,593,642	)	$	102,777,416		85.9	%	$	69,046,928		$	25,623,649		$	85,016,373		$	7,529,306			(37,245,113	)	$	55,300,566

Total Dividends													$	86,384,997		84.2	%																$	46,892,620
Share Price (at close)													$	42.80		17.9	%																$	36.30
Weighted Average Number of Shares														35,609,350		74.6	%																	20,389,577
WA number of Shares and O.P. Units														39,792,409		75.4	%																	22,693,026
Net Income per Share (basic)													$	1.11		-88.4	%																$	9.54
FFO/Share and O.P. Units													$	3.70		25.2	%																$	2.96
FAD/Share and O.P. Units													$	2.58		6.0	%																$	2.44
Dividend/Share and O.P. Units													$	2.16		4.3	%																$	2.07

Ratios

													CY 2004																	Change			CY 2003
NOI/Investment in Real Estate														10.5	%																4.6	%		5.9	%
Total Dividends/Total FFO														58.7	%																-11.2	%		69.9	%
Dividends/FFO per share														58.4	%																-11.6	%		70.0	%

NOTE: A reconciliation of the proportionate consolidation method to GAAP is included on pages 39 to 44.

PAGE 38

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

BALANCE SHEET-RECONCILIATION TO GAAP

(Wholly Owned vs. JVs)


	December 31, 2004															December 31, 2003
	Combined TOTAL ⁽¹⁾			Adjustments to Equity Method			Subtotal			Assets Held for Sale			TOTAL			Combined TOTAL ⁽¹⁾			Adjustments to Equity Method			Subtotal			Assets Held for Sale			TOTAL
ASSETS
Investments in Real Estate, at cost
Retail Properties	$	2,649,708,369		$	(131,343,981	)	$	2,518,364,388		$	(8,108,066	)	$	2,510,256,322		$	2,515,861,018		$	(133,107,107	)	$	2,382,753,911		$	(118,887,475	)	$	2,263,866,436
Multifamily Properties		—			—			—			—			—			—			—			—						—
Industrial Properties		2,504,211			—			2,504,211			—			2,504,211			2,504,211			—			2,504,211			—			2,504,211
Lend Held for Development		9,862,704			—			9,862,704			—			9,862,704			5,604,470			—			5,604,470			—			5,604,470
Construction In Progress		13,494,757			(2,542,307	)		10,952,450			—			10,952,450			21,736,991			(1,506,178	)		20,230,813			—			20,230,813

TOTAL INVESTMENTS IN REAL ESTATE		2,675,570,041			(133,886,288	)		2,541,683,753			(8,108,066	)		2,533,575,687			2,545,706,690			(134,613,285	)		2,411,093,405			(118,887,475	)		2,292,205,930
Accumulated Depreciation		(184,908,972	)		34,023,363			(150,885,609	)		—			(150,885,609	)		(110,068,351	)		31,652,085			(78,416,266	)					(78,416,266	)

Net Real Estate		2,490,661,069			(99,862,925	)		2,390,798,144			(8,108,066	)		2,382,690,078			2,435,638,339			(102,961,200	)		2,332,677,139			(118,887,475	)		2,213,789,664

Investment in and advances to Partnerships		—			27,243,862			27,243,862			—			27,243,862			—			29,166,089			29,166,089			—			29,166,089

		2,490,661,069			(72,619,063	)		2,418,042,006			(8,108,066	)		2,409,933,940			2,435,638,339			(73,795,111	)		2,361,893,228			(118,887,475	)		2,242,955,753

Other Assets:
Cash and Cash Equivalents		45,949,300			(5,609,103	)		40,340,197			—			40,340,197			46,883,041			(3,905,956	)		42,977,085			—			42,977,085
Rents and Other Receivables		42,290,448			(11,328,239	)		30,962,209			—			30,962,209			35,665,968			(7,991,132	)		27,674,836			—			27,674,836
Assets held for sale		6,837,914			—			6,837,914			8,108,066			14,945,980			37,686,662			—			37,686,662			118,887,475			156,574,137
Intangible Assets ⁽²⁾		171,849,678			—			171,849,678			—			171,849,678			181,544,375			—			181,544,375			—			181,544,375
Deferred Costs, Prepaid Taxes & Exp. & Other Assets		69,906,200			(7,550,567	)		62,355,633						62,355,633			61,754,245			(11,942,821	)		49,811,424			—			49,811,424

TOTAL OTHER ASSETS		336,833,540			(24,487,909	)		312,345,631			8,108,066			320,453,697			363,534,291			(23,839,909	)		339,694,382			118,887,475			458,581,857

TOTAL ASSETS		2,827,494,609			(97,106,972	)		2,730,387,637			—			2,730,387,637			2,799,172,630			(96,079,767	)		2,701,537,610			—			2,701,537,610

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable		1,269,992,376			(107,513,205	)		1,162,479,171			(17,399,761	)		1,145,079,410			1,320,774,295			(109,581,659	)		1,211,192,636			(61,138,707	)		1,150,053,929
Mortgage Debt Premium ⁽³⁾		56,134,624			—			56,134,624			—			56,134,624			75,488,243						75,488,243			(4,361,443	)		71,126,800
Bank Loans Payable		271,000,000			—			271,000,000			—			271,000,000			170,000,000			—			170,000,000			—			170,000,000
Acquisition Term Loan & Unsecured Line of Credit		—			—			—			—			—			—			—			—			—			—
Assets held for sale		1,156,442			—			1,156,442			17,399,761			18,556,203			5,840,385			—			5,840,385			65,500,150			71,340,535
Other Liabilities ⁽⁴⁾		92,776,248			10,406,233			103,182,481						103,182,481			90,784,568			11,946,639			102,731,207			—			102,731,207

TOTAL LIABILITIES		1,691,059,690			(97,106,972	)		1,593,952,718			—			1,593,952,718			1,662,887,491			(97,635,020	)		1,565,252,471			—			1,565,252,471

Minority Interest		131,968,917			—			131,968,917			—			131,968,917			112,651,526			—			112,651,526			—			112,651,526

Shareholders’ Equity:
Shares of Beneficial Interest at $1 Par		36,272,160			—			36,272,160			—			36,272,160			35,544,280			—			35,544,280			—			35,544,280
Preferred Shares $0.01 Par		24,750			—			24,750			—			24,750			24,750			—			24,750			—			24,750
Capital Contributed in Excess of Par		899,506,128			—			899,506,128			—			899,506,128			877,444,615			—			877,444,615			—			877,444,615
Restricted Stock		(7,736,812	)		—			(7,736,812	)		—			(7,736,812	)		(3,195,777	)		—			(3,195,777	)		—			(3,195,777	)
Other Comprehensive Income		(1,821,457	)		—			(1,821,457	)		—			(1,821,457	)		(2,005,840	)		—			(2,005,840	)		—			(2,005,840	)
Retained Earnings (Distributions in Excess of Net Income)		78,221,233			—			78,221,233			—			78,221,233			115,821,585			—			115,821,585			—			115,821,585

TOTAL SHAREHOLDERS’ EQUITY		1,004,466,002			—			1,004,466,002			—			1,004,466,002			1,023,633,613			—			1,023,633,613			—			1,023,633,613

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,827,494,609		$	(97,106,972	)	$	2,730,387,637		$	—		$	2,730,387,637		$	2,799,172,630		$	(96,079,767	)	$	2,701,537,610		$	—		$	2,701,537,610


	December 31, 2002
	Combined TOTAL ⁽¹⁾			Adjustments to Equity Method			Subtotal			Assets Held for Sale		TOTAL
ASSETS
Investments in Real Estate, at cost
Retail Properties	$	620,345,902		$	(197,299,357	)	$	423,046,545		$	—	$	423,046,545
Multifamily Properties		305,335,579			(14,728,865	)		290,606,714			—		290,606,714
Industrial Properties		2,504,211			—			2,504,211			—		2,504,211
Lend Held for Development		—			—			—			—		—
Construction In Progress		24,825,973			(1,554,110	)		23,271,863			—		23,271,863

TOTAL INVESTMENTS IN REAL ESTATE		953,011,665			(213,582,332	)		739,429,333			—		739,429,333
Accumulated Depreciation		(180,493,036	)		43,759,779			(136,733,257	)		—		(136,733,257	)

Net Real Estate		772,518,629			(169,822,553	)		602,696,076			—		602,696,076

Investment in and advances to Partnerships		105,309			25,256,374			25,361,683			—		25,361,683

		772,623,938			(144,566,179	)		628,057,759			—		628,057,759

Other Assets:		18,628,137			(5,075,355	)		13,552,782			—		13,552,782
Cash and Cash Equivalents		23,365,079			(10,122,016	)		13,243,063			—		13,243,063
Rents and Other Receivables		—			—			—			—		—
Assets held for sale		—			—			—			—		—
Intangible Assets ⁽²⁾		16,679,886			—			16,679,886			—		16,679,886
Deferred Costs, Prepaid Taxes & Exp. & Other Assets		46,111,466			(13,981,793	)		32,129,673			—		32,129,673

TOTAL OTHER ASSETS		104,784,568			(29,179,164	)		75,605,404			—		75,605,404

TOTAL ASSETS		877,408,506			(173,745,343	)		703,663,163			—		703,663,163

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable		486,479,770			(166,728,446	)		319,751,324			—		319,751,324
Mortgage Debt Premium ⁽³⁾
Bank Loans Payable		130,800,000			—			130,800,000			—		130,800,000
Acquisition Term Loan & Unsecured Line of Credit		—			—			—			—		—
Assets held for sale		—			—			—			—		—
Other Liabilities ⁽⁴⁾		39,643,762			(7,016,897	)		32,626,865			—		32,626,865

TOTAL LIABILITIES		656,923,532			(173,745,343	)		483,178,189			—		483,178,189

Minority Interest		32,472,437			—			32,472,437			—		32,472,437

Shareholders’ Equity:
Shares of Beneficial Interest at $1 Par		16,697,117			—			16,697,117			—		16,697,117
Preferred Shares $0.01 Par
Capital Contributed in Excess of Par		216,768,855			—			216,768,855			—		216,768,855
Restricted Stock		(2,513,191	)		—			(2,513,191	)		—		(2,513,191	)
Other Comprehensive Income		(4,365,728	)		—			(4,365,728	)		—		(4,365,728	)
Retained Earnings (Distributions in Excess of Net Income)		(38,574,516	)		—			(38,574,516	)		—		(38,574,516	)

TOTAL SHAREHOLDERS’ EQUITY		188,012,537			—			188,012,537			—		188,012,537

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	877,408,506		$	(173,745,343	)	$	703,663,163		$	—	$	703,663,163

⁽¹⁾

⁽²⁾

⁽³⁾	Represents premium that is recorded in connection with debt assumed when a property is purchased. The debt is marked to market at the acquisition date and the premium is amortized through interest expense over the remaining term of the debt.

⁽⁴⁾	For Wholly Owned Properties, Other Liabilities includes Tenant Deposits and Deferred Rents, Accrued Pension and Retirement Benefits, Accrued Expenses and Other Liabilities including Deficit Partnership Investments.

PAGE 39

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

INCOME STATEMENT-RECONCILIATION TO GAAP ⁽¹⁾

QUARTERLY COMPARISON

(Wholly Owned vs. Partnerships)


	Q4 04 (3 months ended 12/31/04)																	Q4 03 (3 months ended 12/31/03)
	Combined TOTAL ⁽²⁾			Adjustments to Equity Method			Subtotal			Assets Held for Sale			Total			TOTAL % CHANGE		Combined TOTAL ⁽²⁾			Adjustments to Equity Method			Subtotal			Assets Held for Sale			Total
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies)	$	75,105,772		$	(5,380,110	)	$	69,725,662		$	(927,741	)	$	68,797,921		42.6	%	$	56,257,974		$	(5,419,424	)	$	50,838,550			(2,578,149	)	$	48,260,401
Straight-Lining of Base Rents		1,374,762			(62,109	)		1,312,653			(6,853	)		1,305,800		26.4	%		1,055,305			3,327			1,058,632			(25,787	)		1,032,845
Percentage Rents		4,745,172			(126,665	)		4,618,507			78,124			4,696,631		40.9	%		3,490,813			(15,832	)		3,474,981			(141,500	)		3,333,481
Expense Reimbursables		29,657,333			(1,723,064	)		27,934,269			(214,840	)		27,719,429		28.4	%		24,622,203			(1,856,073	)		22,766,130			(1,185,247	)		21,580,883
Lease Termination		1,252,868			—			1,252,868			—			1,252,868		N/A			744,306			—			744,306			(45,556	)		698,750
Other Real Estate Revenues		6,201,755			(258,453	)		5,943,302			(123,619	)		5,819,683		68.6	%		3,970,963			(366,474	)		3,604,489			(153,033	)		3,451,456

TOTAL REVENUES		118,337,662			(7,550,401	)		110,787,261			(1,194,929	)		109,592,332		39.9	%		90,141,564			(7,654,476	)		82,487,088			(4,129,272	)		78,357,816

REAL ESTATE OPERATING EXPENSES
Operating and Maintenance		31,881,877			(1,547,390	)		30,334,487			(692,830	)		29,641,657		45.2	%		23,935,940			(1,941,169	)		21,994,771			(1,581,444	)		20,413,327
Real Estate Taxes		9,617,480			(663,230	)		8,954,250			(101,094	)		8,853,156		33.1	%		7,695,705			(669,198	)		7,026,507			(376,420	)		6,650,087

TOTAL EXPENSES		41,499,357			(2,210,620	)		39,288,737			(793,924	)		38,494,813		42.2	%		31,631,645			(2,610,367	)		29,021,278			(1,957,864	)		27,063,414

NET OPERATING INCOME		76,838,305			(5,339,781	)		71,498,524			(401,005	)		71,097,519		38.6	%		58,509,919			(5,044,109	)		53,465,810			(2,171,408	)		51,294,402

OTHER INCOME (EXPENSES)
Management Company Revenue		4,072,413			—			4,072,413						4,072,413		11.2	%		3,662,141			—			3,662,141			—			3,662,141
Interest Income		161,323			—			161,323						161,323		-51.7	%		334,319			—			334,319			—			334,319
General & Administrative:
Corporate Payroll and Benefits		(7,466,438	)		—			(7,466,438	)					(7,466,438	)	-27.2	%		(10,261,792	)		—			(10,261,792	)		—			(10,261,792	)
Other G&A Expenses		(3,725,032	)		—			(3,725,032	)					(3,725,032	)	-51.0	%		(7,597,474	)		—			(7,597,474	)		—			(7,597,474	)

Earnings before interest expenses, taxes, depreciation and amortization		69,880,571			(5,339,781	)		64,540,790			(401,005	)		64,139,785		71.4	%		44,647,113			(5,044,109	)		39,603,004			(2,171,408	)		37,431,596

Interest Expense ⁽¹⁾		(20,854,460	)		2,083,405			(18,771,055	)		315,357			(18,455,698	)	34.8	%		(16,332,086	)		2,190,986			(14,141,100	)		449,311			(13,691,789	)
Depreciation & Amortization		(27,394,241	)		2,558,958			(24,835,283	)		—			(24,835,283	)	37.2	%		(19,339,231	)		1,243,672			(18,095,559	)		—			(18,095,559	)

TOTAL OTHER INCOME (EXPENSES)		(48,248,701	)		4,642,363			(43,606,338	)		315,357			(43,290,981	)	36.2	%		(35,671,317	)		3,434,658			(32,236,659	)		449,311			(31,787,348	)

Equity in Income of partnerships		—			697,418			697,418						697,418								1,609,451			1,609,451						1,609,451

Gains (adjustment to gains) on sales of interests in Real Estate		(45,001	)		—			(45,001	)		—			(45,001	)	N/A			4,457,176			—			4,457,176			—			4,457,176

Income before Minority Interest		21,586,869			—			21,586,869			(85,648	)		21,501,221		83.6	%		13,432,972			—			13,432,972			(1,722,097	)		11,710,875

Minority Interest in Properties		(64,900	)		—			(64,900	)		(1,283	)		(66,183	)				(346,548	)					(346,548	)		7,601			(338,947	)
Minority Interest of O.P. Unitholders		(2,333,949	)		—			(2,333,949	)		—			(2,333,949	)	94.7	%		(1,198,594	)		—			(1,198,594	)		—			(1,198,594	)

Income from Operations		19,188,020			—			19,188,020			(86,931	)		19,101,089		87.8	%		11,887,830			—			11,887,830			(1,714,496	)		10,173,334

Discontinued Operations:
Income from Discontinued Operations		—			—			—			85,648			85,648		-95.0	%		—			—			—			1,722,097			1,722,097
Equity in Income of partnerships														—																	—
Minority interest in properties		—									1,283			1,283														(7,601	)		(7,601	)
Minority Interest of O.P. Unitholders		(23,513	)		—			(23,513	)					(23,513	)	N/A			(580,392	)		—			(580,392	)		—			(580,392	)
Gain (adjustment to gains) on Disposition of Discontinued Operations		—			—			—						—		N/A			194,441			—			194,441			—			194,441

TOTAL DISCONTINUED OPERATIONS		(23,513	)		—			(23,513	)		86,931			63,418		N/A			(385,951	)		—			(385,951	)		1,714,496			1,328,545

NET INCOME	$	19,164,507		$	—		$	19,164,507		$	—		$	19,164,507		66.6	%	$	11,501,879		$	—		$	11,501,879		$	—		$	11,501,879

⁽¹⁾	Capitalized interest expense of $379,000 is not included in the quarter ended 12/31/04 and $338,000 is not included in the quarter ended 12/31/03.

⁽²⁾

Includes PREIT’s percent of partnership investments that is “grossed up” to reflect the Trust’s share of the Total Revenues and Expenses of the underlying properties. The Company calculates the “gross up” by applying its percentage ownership interest to the historical financial statements of its equity method investments.

PAGE 40

Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

INCOME STATEMENT-RECONCILIATION TO GAAP ⁽¹⁾

YEARLY COMPARISON

(Wholly Owned vs. Partnerships)


	CY 2004 (12 months ended 12/31/04)																	CY 2003 (12 months ended 12/31/03)
	Combined TOTAL ⁽²⁾			Adjustments to Equity Method			Subtotal			Assets Held for Sale			Total			TOTAL % CHANGE		Combined TOTAL ⁽²⁾			Adjustments to Equity Method			Subtotal			Assets Held for Sale			Total
REAL ESTATE OPERATING REVENUES
Base Rents (Net of Vacancies)	$	286,789,393		$	(21,001,931	)	$	265,787,462		$	(14,929,035	)	$	250,858,427		129.1	%	$	162,339,218		$	(26,669,101	)	$	135,670,117		$	(26,160,683	)	$	109,509,434
Straight-Lining of Base Rents		5,211,965			(113,879	)		5,098,086			(206,161	)		4,891,925		87.6	%		2,805,547			(172,194	)		2,633,353			(25,787	)		2,607,566
Percentage Rents		10,466,745			(314,403	)		10,152,342			(324,843	)		9,827,499		129.6	%		4,765,061			(342,437	)		4,422,624			(141,500	)		4,281,124
Expense Reimbursables		127,250,878			(6,365,867	)		120,885,011			(6,758,511	)		114,126,500		137.9	%		58,116,169			(8,962,472	)		49,153,697			(1,185,247	)		47,968,450
Lease Termination		3,953,472			—			3,953,472			(22,410	)		3,931,062		N/A			1,166,949			(10,995	)		1,155,954			(171,325	)		984,629
Other Real Estate Revenues		13,232,355			(697,024	)		12,535,331			(650,496	)		11,884,835		130.1	%		7,544,829			(1,173,036	)		6,371,793			(1,206,716	)		5,165,077

TOTAL REVENUES		446,904,808			(28,493,104	)		418,411,704			(22,891,456	)		395,520,248		132.0	%		236,737,773			(37,330,235	)		199,407,538			(28,891,258	)		170,516,280

REAL ESTATE OPERATING EXPENSES
Operating and Maintenance		126,591,371			(6,325,367	)		120,266,004			(11,314,010	)		108,951,994		149.1	%		64,885,685			(10,472,504	)		54,413,181			(10,683,544	)		43,729,637
Real Estate Taxes		39,926,741			(2,463,793	)		37,462,948			(2,164,241	)		35,298,707		126.5	%		21,419,626			(3,174,423	)		18,245,203			(2,658,064	)		15,587,139

TOTAL EXPENSES		166,518,112			(8,789,160	)		157,728,952			(13,478,251	)		144,250,701		143.2	%		86,305,311			(13,646,927	)		72,658,384			(13,341,608	)		59,316,776

NET OPERATING INCOME		280,386,696			(19,703,944	)		260,682,752			(9,413,205	)		251,269,547		126.0	%		150,432,462			(23,683,308	)		126,749,154			(15,549,650	)		111,199,504

OTHER INCOME (EXPENSES)
Management Company Revenue		9,702,616			—			9,702,616						9,702,616		-11.6	%		10,973,015			—			10,973,015			—			10,973,015
Interest Income		1,026,116			—			1,026,116						1,026,116		15.8	%		885,975			—			885,975			—			885,975
General & Administrative:
Corporate Payroll and Benefits		(30,057,014	)		—			(30,057,014	)					(30,057,014	)	29.7	%		(23,168,976	)		—			(23,168,976	)		—			(23,168,976	)
Other G&A Expenses		(14,612,911	)		—			(14,612,911	)					(14,612,911	)	-11.5	%		(16,509,394	)		—			(16,509,394	)		—			(16,509,394	)

Earnings before interest expenses, taxes, depreciation and amortization		246,445,503			(19,703,944	)		226,741,559			(9,413,205	)		217,328,354		160.6	%		122,613,082			(23,683,308	)		98,929,774			(15,549,650	)		83,380,124

Interest Expense ⁽¹⁾		(83,551,988	)		8,316,639			(75,235,349	)		2,921,547			(72,313,802	)	104.7	%		(52,359,677	)		11,381,104			(40,978,573	)		5,660,310			(35,318,263	)
Depreciation & Amortization		(103,091,994	)		5,780,886			(97,311,108	)		—			(97,311,108	)	155.1	%		(45,522,364	)		5,071,443			(40,450,921	)		2,308,553			(38,142,368	)

TOTAL OTHER INCOME (EXPENSES)		(186,643,982	)		14,097,525			(172,546,457	)		2,921,547			(169,624,910	)	130.9	%		(97,882,041	)		16,452,547			(81,429,494	)		7,968,863			(73,460,631	)

Equity in Income of partnerships		—			5,606,419			5,606,419						5,606,419								7,230,761			7,230,761						7,230,761

Gains (adjustment to gains) on sales of interests in Real Estate		1,484,182			—			1,484,182			—			1,484,182		N/A			16,199,310			—			16,199,310			—			16,199,310

Income before Minority Interest		61,285,703			—			61,285,703			(6,491,658	)		54,794,045		64.3	%		40,930,351			—			40,930,351			(7,580,787	)		33,349,564

Minority Interest in Properties		(629,599	)		—			(629,599	)		18,426			(611,173	)				(864,465	)					(864,465	)		7,601			(856,864	)
Minority Interest of O.P. Unitholders		(5,695,811	)		—			(5,695,811	)		—			(5,695,811	)	72.7	%		(3,298,010	)		—			(3,298,010	)		—			(3,298,010	)

Income from Operations		54,960,293			—			54,960,293			(6,473,232	)		48,487,061		66.1	%		36,767,876			—			36,767,876			(7,573,186	)		29,194,690

Discontinued Operations:
Income from Discontinued Operations		—			—			—			6,491,658			6,491,658		-14.4	%		—			—			—			7,580,787			7,580,787
Equity in Income of partnerships														—																	—
Minority interest in properties		—									(18,426	)		(18,426	)	N/A												(7,601	)		(7,601	)
Minority Interest of O.P. Unitholders		(622,663	)		—			(622,663	)					(622,663	)	N/A			(18,848,730	)		—			(18,848,730	)		—			(18,848,730	)
Gain (adjustment to gains) on Disposition of Discontinued Operations		(550,000	)		—			(550,000	)					(550,000	)	N/A			178,121,005			—			178,121,005			—			178,121,005

TOTAL DISCONTINUED OPERATIONS		(1,172,663	)		—			(1,172,663	)		6,473,232			5,300,569		N/A			159,272,275			—			159,272,275			7,573,186			166,845,461

NET INCOME	$	53,787,630		$	—		$	53,787,630		$	—		$	53,787,630		-72.6	%	$	196,040,151		$	—		$	196,040,151		$	—		$	196,040,151

⁽¹⁾	Capitalized interest expense of $1,418,000 is not included in the year ended 12/31/04 and $1,408,000 is not included in the year ended 12/31/03.

⁽²⁾

PAGE 41

Pennsylvania REIT

FLASH REPORT-RECONCILIATION TO GAAP (December 31, 2004)

QUARTERLY COMPARISON

Financial Statement


	Q4 04 (3 months ended 12/31/04)															Q4 03 (3 months ended 12/31/03)
	Combined TOTAL			Adjustments to Equity Method			Subtotal			Assets Held for Sale			Total			Combined TOTAL			Adjustments to Equity Method			Subtotal			Assets Held for Sale			Total
Real Estate Revenues:
Same Store	$	58,082,193			(7,550,401	)	$	50,531,792			—		$	50,531,792		$	59,282,475			(7,471,810	)	$	51,810,665			—		$	51,810,665
New		55,912,122			—			55,912,122			—			55,912,122			23,435,410			—			23,435,410			—			23,435,410
Redevelopment		4,614,269			—			4,614,269			—			4,614,269			3,805,221			—			3,805,221			—			3,805,221
Discontinued		(270,922	)		—			(270,922	)		(1,194,929	)		(1,465,851	)		3,618,459			(182,666	)		3,435,793			(4,129,272	)		(693,479	)

Total Real Estate Revenues		118,337,662			(7,550,401	)		110,787,261			(1,194,929	)		109,592,332			90,141,564			(7,654,476	)		82,487,088			(4,129,272	)		78,357,816

Operating Expenses:
Same Store		19,661,135			(2,210,620	)		17,450,515			—			17,450,515			21,006,167			(2,549,680	)		18,456,487			—			18,456,487
New		19,777,668			—			19,777,668			—			19,777,668			7,649,713			—			7,649,713			—			7,649,713
Redevelopment		2,081,320			—			2,081,320			—			2,081,320			1,379,499			—			1,379,499			—			1,379,499
Discontinued		(20,766	)		—			(20,766	)		(793,924	)		(814,690	)		1,596,266			(60,687	)		1,535,579			(1,957,864	)		(422,285	)

Total Operating Expenses		41,499,357			(2,210,620	)		39,288,737			(793,924	)		38,494,813			31,631,645			(2,610,367	)		29,021,278			(1,957,864	)		27,063,414

NOI:
Same Store		38,421,058			(5,339,781	)		33,081,277			—			33,081,277			38,276,308			(4,922,130	)		33,354,178			—			33,354,178
New		36,134,454			—			36,134,454			—			36,134,454			15,785,697			—			15,785,697			—			15,785,697
Redevelopment		2,532,949			—			2,532,949			—			2,532,949			2,425,722			—			2,425,722			—			2,425,722
Discontinued		(250,156	)		—			(250,156	)		(401,005	)		(651,161	)		2,022,193			(121,979	)		1,900,214			(2,171,408	)		(271,194	)

NOI		76,838,305			(5,339,781	)		71,498,524			(401,005	)		71,097,519			58,509,919			(5,044,109	)		53,465,810			(2,171,408	)		51,294,402

OTHER INCOME (EXPENSES):
Management Company Revenue		4,072,413			—			4,072,413			—			4,072,413			3,662,141			—			3,662,141			—			3,662,141
Interest Income		161,323			—			161,323			—			161,323			334,319			—			334,319			—			334,319
General & Administrative:																													—
Corporate Payroll and Benefits		(7,466,438	)		—			(7,466,438	)		—			(7,466,438	)		(10,261,792	)		—			(10,261,792	)		—			(10,261,792	)
Other G&A Expenses		(3,725,032	)		—			(3,725,032	)		—			(3,725,032	)		(7,597,474	)		—			(7,597,474	)		—			(7,597,474	)

EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION		69,880,571			(5,339,781	)		64,540,790			(401,005	)		64,139,785			44,647,113			(5,044,109	)		39,603,004			(2,171,408	)		37,431,596

Interest Expense		(20,854,460	)		2,083,405			(18,771,055	)	$	315,357			(18,455,698	)		(16,332,086	)		2,190,986			(14,141,100	)		449,311			(13,691,789	)
Depreciation and Amortization		(27,394,241	)		2,558,958			(24,835,283	)		—			(24,835,283	)		(19,339,231	)		1,243,672			(18,095,559	)		—			(18,095,559	)
Gain (adjustment to gains) on Sale of Interests in RE		(45,001	)		—			(45,001	)		—			(45,001	)		4,457,176			—			4,457,176			—			4,457,176
Equity in income of partnerships		—			697,418			697,418			—			697,418						1,609,451			1,609,451			—			1,609,451
DISCONTINUED OPERATIONS:		—			—			—												—			—			—			—
Income from Disposed Real Estate		—			—			—			85,648			85,648			—			—			—			1,722,097			1,722,097
Equity in income of partnership		—			—			—			—			—						—						—			—
Minority Interest in properties		—			—			—			1,283			1,283												(7,601	)		(7,601	)
Minority Interest of O.P. Unitholders		(23,513	)		—			(23,513	)		—			(23,513	)		(580,392	)		—			(580,392	)		—			(580,392	)
Gain (adjustment to gains) on Disposition of Discontinued Operations		—			—			—						—			194,441						194,441			—			194,441

TOTAL DISCONTINUED OPERATIONS		(23,513	)		—			(23,513	)		86,931			63,418			(385,951	)		—			(385,951	)		1,714,496			1,328,545

Minority Interest in Properties		(64,900	)		—			(64,900	)		(1,283	)		(66,183	)		(346,548	)		—			(346,548	)		7,601			(338,947	)
Extraordinary item (Loss on early extinguishment of debt)		—			—			—			—			—			—			—			—			—			—
Minority Interest of OP Unit Holders		(2,333,949	)		—			(2,333,949	)		—			(2,333,949	)		(1,198,594	)		—			(1,198,594	)		—			(1,198,594	)

NET INCOME		19,164,507			—			19,164,507			—			19,164,507			11,501,879			—			11,501,879			—			11,501,879

Gain on Sale of Real Estate		45,001			—			45,001			—			45,001			(4,651,617	)		—			(4,651,617	)		—			(4,651,617	)
Depreciation and Amor. of Real Estate		26,977,348			—			26,977,348			—			26,977,348			(19,160,727	)		—			(19,160,727	)		—			(19,160,727	)
Dividends on preferred shares		(3,403,125	)		—			(3,403,125	)		—			(3,403,125	)		(1,533,000	)		—			(1,533,000	)		—			(1,533,000	)
FFO Adjustments		2,357,462			—			2,357,462			—			2,357,462			40,035,440			—			40,035,440			—			40,035,440

FFO		45,141,193			—			45,141,193			—			45,141,193			26,191,975			—			26,191,975			—			26,191,975

Adj. Straight Lining of Base Rents		(1,374,762	)		—			(1,374,762	)		—			(1,374,762	)		(1,055,305	)		—			(1,055,305	)		—			(1,055,305	)
Recurring Capital Expenditures		(3,989,314	)		—			(3,989,314	)		—			(3,989,314	)		(876,942	)		—			(876,942	)		—			(876,942	)
Tenant allowances		(9,164,115	)		—			(9,164,115	)		—			(9,164,115	)		(1,265,392	)		—			(1,265,392	)					(1,265,392	)
Amortization of Debt Premium		(4,811,196	)		—			(4,811,196	)		—			(4,811,196	)		(2,933,065	)		—			(2,933,065	)					(2,933,065	)
Amortization of above-and below market lease intangibles		115,172			—			115,172			—			115,172			167,000			—			—			—			167,000

FAD	$	25,916,978		$	—		$	25,916,978		$	—		$	25,916,978		$	20,228,271		$	—		$	20,061,271		$	—		$	20,228,271

Total Dividends													$	21,782,545														$	15,534,398
Share Price (at close)													$	42.80														$	36.30
Weighted Average Number of Shares														35,818,787															28,786,801
WA number of Shares and OP Units														40,244,661															31,744,396
Net Income per Share (basic)													$	0.43														$	0.35
FFO/Share and OP Units													$	1.12														$	0.83
FAD/Share and OP Units													$	0.64														$	0.64
Dividend/Share and OP Units													$	0.54														$	0.54

Balance Sheet


	Combined Total			Adjustments to Equity Method			Subtotal			Assets Held for Sale			TOTAL			Combined Total			Adjustments to Equity Method			Subtotal			Assets Held for Sale			TOTAL
Investment in Real Estate, at cost	$	2,675,570,041		$	(133,886,288	)	$	2,541,683,753		$	(8,108,066	)	$	2,533,575,687		$	2,545,706,690		$	(134,613,285	)	$	2,411,093,405			(118,887,475	)	$	2,292,205,930
Accumulated Depreciation		(184,908,972	)		34,023,363			(150,885,609	)		—			(150,885,609	)		(110,068,351	)		31,652,085			(78,416,266	)		—			(78,416,266	)
Investment in and advances to Partnerships		—			27,243,862			27,243,862			—			27,243,862			—			29,166,089			29,166,089			—			29,166,089
Other Assets		336,833,540			(24,487,909	)	$	312,345,631			8,108,066			320,453,697			363,534,291			(23,839,909	)	$	339,694,382			118,887,475			458,581,857

Total Assets	$	2,827,494,609		$	(97,106,972	)	$	2,730,387,637		$	—		$	2,730,387,637		$	2,799,172,630		$	(97,635,020	)	$	2,701,537,610			—		$	2,701,537,610

Mortgage Notes	$	1,326,127,000		$	(107,513,205	)	$	1,218,613,795		$	(17,399,761	)	$	1,201,214,034		$	1,396,262,538		$	(109,581,659	)	$	1,286,680,879		$	(65,500,150	)	$	1,221,180,729
Line of Credit		271,000,000			—			271,000,000			—			271,000,000			170,000,000			—			170,000,000			—			170,000,000
Acquisition Term Loan & Unsecured Line of Credit		—			—			—			—			—			—			—			—			—			—
Other Liabilities		93,932,690			10,406,233			104,338,923			17,399,761			121,738,684			96,624,952			11,946,639			110,126,844			65,500,150			175,626,994

Total Liabilities	$	1,691,059,690		$	(97,106,972	)	$	1,593,952,718		$	—		$	1,593,952,718		$	1,662,887,490		$	(97,635,020	)	$	1,565,252,470			—		$	1,565,252,470

Minority Interest	$	131,968,917		$	—		$	131,968,917		$	—		$	131,968,917		$	112,651,527		$	—		$	112,651,527		$	—		$	112,651,527
Total Shareholders Equity		1,004,466,002			—			1,004,466,002			—			1,004,466,002			1,023,633,613			—			1,023,633,613			—			1,023,633,613

Total Liabilities and Shareholder Equity	$	2,827,494,609		$	(97,106,972	)	$	2,730,387,637		$	—		$	2,730,387,637		$	2,799,172,630		$	(97,635,020	)	$	2,701,537,610			—		$	2,701,537,610

PAGE 42

Pennsylvania REIT

FLASH REPORT-RECONCILIATION TO GAAP (December 31, 2004)

YEARLY COMPARISON

Financial Statement


	CY 2004 (12 months ended 12/31/04)															CY 2003 (12 months ended 12/31/03)
	Combined TOTAL			Adjustments to Equity Method			Subtotal			Assets Held for Sale			Total			Combined TOTAL			Adjustments to Equity Method			Subtotal			Assets Held for Sale			Total
Real Estate Revenues:
Same Store	$	86,727,891			(28,044,574	)	$	58,683,317			—		$	58,683,317		$	84,216,107			(29,743,623	)	$	54,472,484			—		$	54,472,484
New		327,105,337			—			327,105,337			—			327,105,337			107,031,270			(4,737,566	)		102,293,704			—			102,293,704
Redevelopment		15,417,360			—			15,417,360			—			15,417,360			14,443,572			—			14,443,572			—			14,443,572
Discontinued		17,654,220			(448,530	)		17,205,690			(22,891,456	)		(5,685,766	)		31,046,825			(2,849,046	)		28,197,779			(28,891,258	)		(693,479	)

Total Real Estate Revenues		446,904,808			(28,493,104	)		418,411,704			(22,891,456	)		395,520,248			236,737,773			(37,330,235	)		199,407,538			(28,891,258	)		170,516,280

Operating Expenses:
Same Store		23,816,477			(8,640,681	)		15,175,796			—			15,175,796		$	23,530,453			(9,510,397	)		14,020,056			—			14,020,056
New		126,862,615			—			126,862,615			—			126,862,615			43,521,147			(2,878,733	)		40,642,414			—			40,642,414
Redevelopment		5,449,154			—			5,449,154			—			5,449,154			5,076,591			—			5,076,591			—			5,076,591
Discontinued		10,389,866			(148,479	)		10,241,387			(13,478,251	)		(3,236,864	)		14,177,120			(1,257,797	)		12,919,323			(13,341,608	)		(422,285	)

Total Operating Expenses		166,518,112			(8,789,160	)		157,728,952			(13,478,251	)		144,250,701			86,305,311			(13,646,927	)		72,658,384			(13,341,608	)		59,316,776

NOI:
Same Store		62,911,414			(19,403,893	)		43,507,521			—			43,507,521			60,685,654			(20,233,226	)		40,452,428			—			40,452,428
New		200,242,722			—			200,242,722			—			200,242,722			63,510,123			(1,858,833	)		61,651,290			—			61,651,290
Redevelopment		9,968,206			—			9,968,206			—			9,968,206			9,366,981			—			9,366,981			—			9,366,981
Discontinued		7,264,354			(300,051	)		6,964,303			(9,413,205	)		(2,448,902	)		16,869,705			(1,591,249	)		15,278,456			(15,549,650	)		(271,194	)

NOI		280,386,696			(19,703,944	)		260,682,752			(9,413,205	)		251,269,547			150,432,462			(23,683,308	)		126,749,154			(15,549,650	)		111,199,504

OTHER INCOME (EXPENSES):
Management Company Revenue		9,702,616			—			9,702,616			—			9,702,616			10,973,015			—			10,973,015			—			10,973,015
Interest Income		1,026,116			—			1,026,116			—			1,026,116			885,975			—			885,975			—			885,975
General & Administrative:																													—
Corporate Payroll and Benefits		(30,057,014	)		—			(30,057,014	)		—			(30,057,014	)		(23,168,976	)		—			(23,168,976	)		—			(23,168,976	)
Other G&A Expenses		(14,612,911	)		—			(14,612,911	)		—			(14,612,911	)		(16,509,394	)		—			(16,509,394	)		—			(16,509,394	)

EARNINGS BEFORE INTEREST EXPENSES, TAXES, DEPRECIATION AND AMORTIZATION		246,445,503			(19,703,944	)		226,741,559			(9,413,205	)		217,328,354			122,613,082			(23,683,308	)		98,929,774			(15,549,650	)		83,380,124

Interest Expense		(83,551,988	)		8,316,639			(75,235,349	)	$	2,921,547			(72,313,802	)		(52,359,677	)		11,381,104			(40,978,573	)		5,660,310			(35,318,263	)
Depreciation and Amortization		(103,091,994	)		5,780,886			(97,311,108	)		—			(97,311,108	)		(45,522,364	)		5,071,443			(40,450,921	)		2,308,553.00			(38,142,368	)
Gain (adjustment to gains) on Sale of Interests in RE		1,484,182			—			1,484,182			—			1,484,182			16,199,310			—			16,199,310			—			16,199,310
Equity in income of partnerships		—			5,606,419			5,606,419			—			5,606,419			—			7,230,761			7,230,761			—			7,230,761
DISCONTINUED OPERATIONS:		—			—			—												—			—			—			—
Income from Disposed Real Estate		—			—			—			6,491,658			6,491,658			—			—			—			7,580,787			7,580,787
Equity in income of partnership		—			—			—			—			—						—						—			—
Minority Interest in properties		—			—			—			(18,426	)		(18,426	)					—						(7,601	)		(7,601	)
Minority Interest of O.P. Unitholders		(622,663	)		—			(622,663	)		—			(622,663	)		(18,848,730	)		—			(18,848,730	)					(18,848,730	)
Gain (adjustment to gains) on Disposition of Discontinued Operations		(550,000	)		—			(550,000	)					(550,000	)		178,121,005						178,121,005			—			178,121,005

TOTAL DISCONTINUED OPERATIONS		(1,172,663	)		—			(1,172,663	)		6,473,232			5,300,569			159,272,275			—			159,272,275			7,573,186			166,845,461

Minority Interest in Properties		(629,599	)		—			(629,599	)		18,426			(611,173	)		(864,465	)		—			(864,465	)		7,601			(856,864	)
Extraordinary item (Loss on early extinguishment of debt)		—			—			—			—			—			—			—			—			—			—
Minority Interest of OP Unit Holders		(5,695,811	)		—			(5,695,811	)		—			(5,695,811	)		(3,298,010	)		—			(3,298,010	)		—			(3,298,010	)

NET INCOME		53,787,630			—			53,787,630			—			53,787,630			196,040,151			—			196,040,151			—			196,040,151

Gain on Sale of Real Estate		(934,182	)		—			(934,182	)		—			(934,182	)		(194,320,315	)		—			(194,320,315	)		—			(194,320,315	)
Depreciation and Amor. of Real Estate		101,642,305			—			101,642,305			—			101,642,305			44,736,057			—			44,736,057			—			44,736,057
Dividends on preferred shares		(13,612,500	)		—			(13,612,500	)		—			(13,612,500	)		(1,533,000	)		—			(1,533,000	)		—			(1,533,000	)
FFO Adjustments		6,318,474			—			6,318,474			—			6,318,474			22,146,740			—			22,146,740			—			22,146,740

FFO		147,201,727			—			147,201,727			—			147,201,727			67,069,633			—			67,069,633			—			67,069,633

Adj. Straight Lining of Base Rents		(5,211,965	)		—			(5,211,965	)		—			(5,211,965	)		(2,805,547	)		—			(2,805,547	)		—			(2,805,547	)
Recurring Capital Expenditures		(8,905,629	)		—			(8,905,629	)		—			(8,905,629	)		(2,162,415	)		—			(2,162,415	)		—			(2,162,415	)
Tenant allowances		(11,660,288	)		—			(11,660,288	)		—			(11,660,288	)		(1,265,392	)		—			(1,265,392	)					(1,265,392	)
Amortization of Debt Premium		(19,353,621	)		—			(19,353,621	)		—			(19,353,621	)		(5,940,175	)		—			(5,940,175	)					(5,940,175	)
Amortization of above-and below market lease intangibles		707,192			—			707,192			—			707,192			404,462			—			—			—			404,462

FAD	$	102,777,416		$	—		$	102,777,416		$	—		$	102,777,416		$	55,300,566		$	—		$	54,896,104		$	—		$	55,300,566

Total Dividends													$	86,384,997														$	46,892,620
Share Price (at close)													$	42.80														$	36.30
Weighted Average Number of Shares														35,609,350															20,389,577
WA number of Shares and OP Units														39,792,409															22,693,026
Net Income per Share (basic)													$	1.11														$	9.54
FFO/Share and OP Units													$	3.70														$	2.96
FAD/Share and OP Units													$	2.58														$	2.44
Dividend/Share and OP Units													$	2.16														$	2.07

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Pennsylvania REIT

QUARTERLY SUPPLEMENTAL DISCLOSURE (December 31, 2004)

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, as income before gains (losses) on sales of property and extraordinary items (computed in accordance with GAAP); plus real estate depreciation; plus or minus adjustments for unconsolidated partnership 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 (losses) on 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 real estate and depreciation and amortization of real estate.

Net Operating Income (NOI)

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.

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, income from discontinued operations and gains on sales of interests in real estate.

Funds Available for Distribution (FAD)

FAD also referred to as Cash Available for Distributions (CAD) and adjusted FFO (AFFO). FAD refers to a computation made by analysts and investors to measure a real estate company's cash flows generated by operations. FAD is calculated by subtracting from FFO (1) normalized recurring capital expenditures that are capitalized but necessary to maintain a REIT's properties and (2) straight-line rents.

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

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)

Earnings before interest, taxes, depreciation and amortization. On a property level, EBITDA and NOI are equivalent; however, certain corporate revenues and expenses are added and deducted to/from NOI to derive EBITDA on a company wide basis. Specifically, management company revenues and interest income are added to NOI while corporate payroll and other General and Administrative expenses are deducted from NOI to calculate EBITDA.

The Company believes that net income is the most directly comparable GAAP measurement to EBITDA. The Company believes that EBITDA helps the Company and its investors evaluate the ongoing operating performance of its properties and facilitate comparisons with other REITs and real estate companies. These measures assist management by providing a baseline to assess property-level results, particularly as the Company acquires or sells assets. The EBITDA measures presented by the Company may not be comparable to other similarly titled measures of other companies.

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